Detailed Project Report · Bank loan appraisal
Sample Provision / Grocery Shop
Provision / Grocery Shop · Pune, Maharashtra
1. Executive summary
Sample Promoter proposes to establish a new Provision / Grocery Shop unit at Shop No. 12, Market Road, Pune, Maharashtra. Total project cost is ₹505,000, to be funded by promoter contribution of ₹100,000, term loan of ₹400,000. Year-1 sales are estimated at ₹3,360,000. Average DSCR is 0.93 (below the typical 1.50 bank benchmark).
2. Business description & objectives
Legal form: Proprietorship. Sector: Trading.
Products / services: Fast-moving consumer goods, staples, packaged foods and household items.
Objective: obtain MUDRA (PMMY) assistance to create a viable unit, generate local employment (3 persons) and service the loan from operating surplus.
3. Promoter profile
| Name | Sample Promoter | Age | 32 |
|---|---|---|---|
| Qualification | Graduate | Experience (years) | 5 |
| Address | Shop No. 12, Market Road, Pune 411001 | ||
| Proposed bank | State Bank of India | ||
4. Market & industry
Local residential catchment within 2 km, daily household demand.
Under PMMY this ticket size maps to Kishor (₹50,001 – ₹5 lakh).
5. Products / services
Fast-moving consumer goods, staples, packaged foods and household items.
6. Operational plan
Location: Shop No. 12, Market Road. Manpower: 3 including the promoter. Capacity utilisation starts at 70% in year 1 and rises to 100% by year 5.
7. Project cost & means of finance
| Particulars | Amount (₹) |
|---|---|
| Land | 0 |
| Building / civil works | 150,000 |
| Plant & machinery | 40,000 |
| Furniture & fixtures | 70,000 |
| Vehicles | 0 |
| Preliminary & preoperative | 25,000 |
| Working capital margin / WC | 220,000 |
| Total project cost | 505,000 |
| Means of finance | Amount (₹) |
|---|---|
| Promoter contribution | 100,000 |
| Term loan | 400,000 |
| Subsidy | 0 |
| Unsecured loans / others | 0 |
| Total means | 500,000 |
Promoter margin: 19.8%. Balancing difference: ₹-5,000.
8. Financial projections (P&L)
| Particulars | Y1 | Y2 | Y3 | Y4 | Y5 |
|---|---|---|---|---|---|
| Sales | 2,352,000 | 2,956,800 | 3,659,040 | 4,248,552 | 4,919,376 |
| Cost of goods / inputs | 1,928,640 | 2,424,576 | 3,000,413 | 3,483,813 | 4,033,888 |
| Gross profit | 423,360 | 532,224 | 658,627 | 764,739 | 885,488 |
| Operating expenses | 436,800 | 499,200 | 561,600 | 592,800 | 624,000 |
| EBITDA | -13,440 | 33,024 | 97,027 | 171,939 | 261,488 |
| Depreciation | 53,000 | 24,900 | 22,155 | 19,723 | 17,566 |
| Interest | 46,000 | 36,800 | 27,600 | 18,400 | 9,200 |
| PBT | -112,440 | -28,676 | 47,272 | 133,817 | 234,721 |
| Tax | 0 | 0 | 11,818 | 33,454 | 58,680 |
| PAT | -112,440 | -28,676 | 35,454 | 100,362 | 176,041 |
9. Working capital
Working capital built into the project is ₹220,000. Indicative MPBF (75% of NWC) is ₹86,625. Current ratio (Y1): 4.00.
10. Loan repayment schedule
| Year | Opening | Interest | Principal | Instalment | Closing |
|---|---|---|---|---|---|
| Y1 | 400,000 | 46,000 | 80,000 | 126,000 | 320,000 |
| Y2 | 320,000 | 36,800 | 80,000 | 116,800 | 240,000 |
| Y3 | 240,000 | 27,600 | 80,000 | 107,600 | 160,000 |
| Y4 | 160,000 | 18,400 | 80,000 | 98,400 | 80,000 |
| Y5 | 80,000 | 9,200 | 80,000 | 89,200 | 0 |
Interest 11.50% p.a. · Tenure 5 years · Average DSCR 0.93 · Minimum DSCR -0.11.
11. Balance sheet (projected)
| Particulars | Y1 | Y2 | Y3 | Y4 | Y5 |
|---|---|---|---|---|---|
| Net fixed assets | 232,000 | 207,100 | 184,945 | 165,222 | 147,656 |
| Current assets | 154,000 | 176,000 | 198,000 | 209,000 | 223,828 |
| Total assets | 386,000 | 383,100 | 382,945 | 374,222 | 371,484 |
| Capital + subsidy | 100,000 | 100,000 | 100,000 | 100,000 | 100,000 |
| Reserves | -112,440 | -141,116 | -105,662 | -5,299 | 170,742 |
| Term loan o/s | 320,000 | 240,000 | 160,000 | 80,000 | 0 |
| Current liabilities | 38,500 | 44,000 | 49,500 | 52,250 | 55,957 |
12. Risk & mitigation
Key risks: slower demand, cost inflation and delayed receivables. Mitigation: conservative capacity in year 1, promoter experience of 5 years, and DSCR buffer where projections allow. Statutory registrations (Udyam, GST, local licences) to be completed before disbursement.
ConPros Financial Services · Confidential sample — not for bank filing · 09 Sep 2026