Detailed Project Report
Wood Crafting Unit (Wooden Frames)
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹2.73 L
- Term loan from bank
- ₹1.77 L
- Promoter’s contribution
- ₹0.27 L
- Subsidy
- ₹0.68 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-3.38 L
- Average DSCR
- -8.36
- Break-even (% of capacity used)
- —
02 Promoter and unit
| Promoter name | — |
|---|---|
| Business / firm name | — |
| Legal form | Proprietorship |
| Address of the unit | — |
| Applicant category | General · Rural |
03 The project
A small workshop that saws, routs and turns wood into frames.
| Main product or service | Wood Crafting Unit (Wooden Frames) |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Households and offices
- Photo studios and gift shops
- Gift and decor shops
- Online marketplaces
- Craft fairs
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Circular saws | 1 | 4,500 | 4,500 |
| Bandsaw | 1 | 38,000 | 38,000 |
| Frame saw | 1 | 1,000 | 1,000 |
| Hand saw | 1 | 800 | 800 |
| Planes | 1 | 700 | 700 |
| Router | 1 | 15,000 | 15,000 |
| Lathe machine | 1 | 2,00,000 | 2,00,000 |
| Total | 2,60,000 |
Pre-filled from: PMEGP sample project report — Wood Crafting Unit (prepared by Udyami/Samadhan); World Customs Organization – HS Nomenclature 2022, Chapter 44. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Hardwood and softwood — sheesham, teak, mango and similar woods
- Glue — for joints
- Nails — for joints
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 2.60 |
| Contingency | 0.13 |
| Total fixed capital | 2.73 |
| Working capital margin | 0.00 |
| Total project cost | 2.73 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.27 | 10.0 |
| Subsidy | 0.68 | 25.0 |
| Term loan from bank | 1.77 | 65.0 |
| Total | 2.73 | 100.0 |
| Working capital loan (outside project cost) | 0.00 |
09 Key assumptions
| Selling price | ₹0 per units |
|---|---|
| Raw material & packing cost | ₹0 per units |
| Capacity used each year | 60% · 70% · 80% · 80% · 80% · 80% · 80% |
| Term loan interest rate (% a year) | 11% · 84 months (Moratorium 6) |
| Working capital method | Turnover method (RBI) · Working capital interest (% a year) 11% |
| Income tax rate | 25% |
| Yearly price and cost rise | 0% |
10 Production and sales
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capacity used | 60% | 70% | 80% | 80% | 80% | 80% | 80% |
| Production (units) | 6,000 | 7,000 | 8,000 | 8,000 | 8,000 | 8,000 | 8,000 |
| Sales | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
11 Projected profitability
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Sales | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Raw material and packing | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Power and fuel | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Salaries and wages | 2.88 | 2.88 | 2.88 | 2.88 | 2.88 | 2.88 | 2.88 |
| Rent | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Administration | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Selling and distribution | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Repairs and maintenance | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 |
| Insurance | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
| Total cost of operations | 2.95 | 2.95 | 2.95 | 2.95 | 2.95 | 2.95 | 2.95 |
| Operating profit (EBITDA) | -2.95 | -2.95 | -2.95 | -2.95 | -2.95 | -2.95 | -2.95 |
| Depreciation | 0.41 | 0.35 | 0.30 | 0.25 | 0.21 | 0.18 | 0.15 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.19 | 0.17 | 0.14 | 0.11 | 0.08 | 0.05 | 0.02 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -3.55 | -3.46 | -3.38 | -3.31 | -3.24 | -3.18 | -3.12 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -3.55 | -3.46 | -3.38 | -3.31 | -3.24 | -3.18 | -3.12 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -3.55 | -3.46 | -3.38 | -3.31 | -3.24 | -3.18 | -3.12 |
| Depreciation | 0.41 | 0.35 | 0.30 | 0.25 | 0.21 | 0.18 | 0.15 |
| Cash accruals (PAT + depreciation) | -3.14 | -3.11 | -3.08 | -3.05 | -3.02 | -2.99 | -2.96 |
| Term loan repaid | 0.14 | 0.27 | 0.27 | 0.27 | 0.27 | 0.27 | 0.27 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -3.28 | -3.39 | -3.36 | -3.33 | -3.30 | -3.27 | -3.24 |
| Cash and bank | -3.28 | -6.66 | -10.02 | -13.35 | -16.65 | -19.91 | -23.15 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 0.96 | 0.96 | 0.96 | 0.96 | 0.96 | 0.96 | 0.96 |
| Reserves and surplus | -3.55 | -7.01 | -10.39 | -13.70 | -16.94 | -20.11 | -23.23 |
| Term loan outstanding | 1.64 | 1.37 | 1.09 | 0.82 | 0.55 | 0.27 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | -0.96 | -4.69 | -8.35 | -11.92 | -15.44 | -18.89 | -22.28 |
| Net fixed assets | 2.32 | 1.97 | 1.68 | 1.43 | 1.21 | 1.03 | 0.88 |
| Preliminary expenses not written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Current assets (stock and debtors) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Cash and bank | -3.28 | -6.66 | -10.02 | -13.35 | -16.65 | -19.91 | -23.15 |
| Total assets | -0.96 | -4.69 | -8.35 | -11.92 | -15.44 | -18.89 | -22.28 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -8.97 | -6.71 | -7.20 | -7.77 | -8.44 | -9.23 | -10.19 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -8.36 |
|---|---|
| Lowest DSCR | -10.19 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 0.41 | 0.35 | 0.30 | 0.25 | 0.21 | 0.18 | 0.15 |
Written-down value method at Income-tax Rules block rates (building 10%, plant & machinery 15%, furniture 10%, computers 40%). Change them if your CA uses other rates.
16 Term loan repayment
| Year | Opening | Interest | Term loan repaid | Closing |
|---|---|---|---|---|
| 1 | 1.77 | 0.19 | 0.14 | 1.64 |
| 2 | 1.64 | 0.17 | 0.27 | 1.37 |
| 3 | 1.37 | 0.14 | 0.27 | 1.09 |
| 4 | 1.09 | 0.11 | 0.27 | 0.82 |
| 5 | 0.82 | 0.08 | 0.27 | 0.55 |
| 6 | 0.55 | 0.05 | 0.27 | 0.27 |
| 7 | 0.27 | 0.02 | 0.27 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- Buy timber only from licensed depots with a transit pass where state forest rules require it
- Artisan identity card (Pehchan) from the Development Commissioner (Handicrafts) — useful for craft schemes and fairs
- Trade licence from the local body
18 Government schemes that may apply
- Prime Minister's Employment Generation Programme (PMEGP)
- Pradhan Mantri MUDRA Yojana (PMMY) – Shishu, Kishor, Tarun, Tarun Plus
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
- Stand-Up India
19 Sources
- PMEGP sample project report — Wood Crafting Unit (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Wood_Crafting_Unit_DPR_%28_Samadhan_Projects_%29.pdf
- World Customs Organization – HS Nomenclature 2022, Chapter 44 — https://www.wcoomd.org/-/media/wco/public/global/pdf/topics/nomenclature/instruments-and-tools/hs-nomenclature-2022/2022/0944_2022e.pdf
This report is a projection from the figures entered by the promoter. It is not a bank appraisal or a guarantee of a loan or subsidy. Check every figure with current quotations and your chartered accountant before submitting it.