Detailed Project Report
Wooden Toys and Decorative Pieces
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹0.65 L
- Term loan from bank
- ₹0.42 L
- Promoter’s contribution
- ₹0.07 L
- Subsidy
- ₹0.16 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-3.00 L
- Average DSCR
- -34.44
- 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 tiny carving workshop for wooden toys and decor pieces, startable for ₹2.12 L.
| Main product or service | Wooden Toys and Decorative Pieces |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Gift and decor buyers
- Parents buying toys
- Handicraft exporters
- Craft fairs and exhibitions
- Gift shops and emporiums
- Online marketplaces
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Band saw machine | 1 | 0 | 0 |
| Jig saw machine | 1 | 0 | 0 |
| Bench grinder | 1 | 0 | 0 |
| 12 mm drilling machine | 1 | 0 | 0 |
| Sanding machine | 1 | 0 | 0 |
| All equipment together (× 1 lot) | 1 | 62,000 | 62,000 |
| Total | 62,000 |
Pre-filled from: KVIC Project Profile — Wooden Toys and Decorative Pieces (PMEGP); World Customs Organization – HS Nomenclature 2022, Chapter 95. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Wood pieces — cheap white wood for toys, better wood for decorative pieces
- Adhesive (fevicol), paint and sandpaper — raw material in all ₹5,00,000 a year at full capacity
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 0.62 |
| Contingency | 0.03 |
| Total fixed capital | 0.65 |
| Working capital margin | 0.00 |
| Total project cost | 0.65 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.07 | 10.0 |
| Subsidy | 0.16 | 25.0 |
| Term loan from bank | 0.42 | 65.0 |
| Total | 0.65 | 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 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
| Insurance | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total cost of operations | 2.90 | 2.90 | 2.90 | 2.90 | 2.90 | 2.90 | 2.90 |
| Operating profit (EBITDA) | -2.90 | -2.90 | -2.90 | -2.90 | -2.90 | -2.90 | -2.90 |
| Depreciation | 0.10 | 0.08 | 0.07 | 0.06 | 0.05 | 0.04 | 0.04 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.05 | 0.04 | 0.03 | 0.03 | 0.02 | 0.01 | 0.00 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -3.04 | -3.02 | -3.00 | -2.98 | -2.97 | -2.95 | -2.94 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -3.04 | -3.02 | -3.00 | -2.98 | -2.97 | -2.95 | -2.94 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -3.04 | -3.02 | -3.00 | -2.98 | -2.97 | -2.95 | -2.94 |
| Depreciation | 0.10 | 0.08 | 0.07 | 0.06 | 0.05 | 0.04 | 0.04 |
| Cash accruals (PAT + depreciation) | -2.94 | -2.94 | -2.93 | -2.92 | -2.91 | -2.91 | -2.90 |
| Term loan repaid | 0.03 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -2.97 | -3.00 | -2.99 | -2.99 | -2.98 | -2.97 | -2.97 |
| Cash and bank | -2.97 | -5.98 | -8.97 | -11.96 | -14.94 | -17.91 | -20.87 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 0.23 | 0.23 | 0.23 | 0.23 | 0.23 | 0.23 | 0.23 |
| Reserves and surplus | -3.04 | -6.06 | -9.06 | -12.04 | -15.01 | -17.96 | -20.89 |
| Term loan outstanding | 0.39 | 0.33 | 0.26 | 0.20 | 0.13 | 0.07 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | -2.42 | -5.51 | -8.57 | -11.62 | -14.65 | -17.66 | -20.66 |
| Net fixed assets | 0.55 | 0.47 | 0.40 | 0.34 | 0.29 | 0.25 | 0.21 |
| 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 | -2.97 | -5.98 | -8.97 | -11.96 | -14.94 | -17.91 | -20.87 |
| Total assets | -2.42 | -5.51 | -8.57 | -11.62 | -14.65 | -17.66 | -20.66 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -36.97 | -27.64 | -29.67 | -32.02 | -34.77 | -38.04 | -41.99 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -34.44 |
|---|---|
| Lowest DSCR | -41.99 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 0.10 | 0.08 | 0.07 | 0.06 | 0.05 | 0.04 | 0.04 |
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 | 0.42 | 0.05 | 0.03 | 0.39 |
| 2 | 0.39 | 0.04 | 0.07 | 0.33 |
| 3 | 0.33 | 0.03 | 0.07 | 0.26 |
| 4 | 0.26 | 0.03 | 0.07 | 0.20 |
| 5 | 0.20 | 0.02 | 0.07 | 0.13 |
| 6 | 0.13 | 0.01 | 0.07 | 0.07 |
| 7 | 0.07 | 0.00 | 0.07 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- Artisan identity card (Pehchan) from the Development Commissioner (Handicrafts) — useful for craft schemes and fairs
- BIS licence under the Toys (Quality Control) Order for toys sold in India; artisans registered with the Development Commissioner (Handicrafts) selling their own handmade toys are exempt — check the current order
18 Government schemes that may apply
- Prime Minister's Employment Generation Programme (PMEGP)
- Mukhyamantri Yuva Udyami Vikas Abhiyan (CM-YUVA)
- Pradhan Mantri MUDRA Yojana (PMMY) – Shishu, Kishor, Tarun, Tarun Plus
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
19 Sources
- KVIC Project Profile — Wooden Toys and Decorative Pieces (PMEGP) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/WOODEN_TOYS_AND_DECORATIVE_PIECES_%28_RURAL_ENGG._AND_BIO-TECH_INDUSTRY_%29.pdf
- World Customs Organization – HS Nomenclature 2022, Chapter 95 — https://www.wcoomd.org/-/media/wco/public/global/pdf/topics/nomenclature/instruments-and-tools/hs-nomenclature-2022/2022/2095_2022e.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.