Detailed Project Report · Bank loan appraisal
Sample Beauty Parlour / Salon
Beauty Parlour / Salon · Pune, Maharashtra
1. Executive summary
Sample Promoter proposes to establish a new Beauty Parlour / Salon unit at Shop No. 12, Market Road, Pune, Maharashtra. Total project cost is ₹500,000, to be funded by promoter contribution of ₹100,000, term loan of ₹500,000. Year-1 sales are estimated at ₹3,000,000. Average DSCR is 1.13 (below the typical 1.50 bank benchmark).
2. Business description & objectives
Legal form: Proprietorship. Sector: Service.
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 | 80,000 |
| Furniture & fixtures | 70,000 |
| Vehicles | 0 |
| Preliminary & preoperative | 25,000 |
| Working capital margin / WC | 175,000 |
| Total project cost | 500,000 |
| Means of finance | Amount (₹) |
|---|---|
| Promoter contribution | 100,000 |
| Term loan | 500,000 |
| Subsidy | 0 |
| Unsecured loans / others | 0 |
| Total means | 600,000 |
Promoter margin: 20.0%. Balancing difference: ₹100,000.
8. Financial projections (P&L)
| Particulars | Y1 | Y2 | Y3 | Y4 | Y5 |
|---|---|---|---|---|---|
| Sales | 2,100,000 | 2,640,000 | 3,267,000 | 3,793,350 | 4,392,300 |
| Cost of goods / inputs | 1,638,000 | 2,059,200 | 2,548,260 | 2,958,813 | 3,425,994 |
| Gross profit | 462,000 | 580,800 | 718,740 | 834,537 | 966,306 |
| Operating expenses | 436,800 | 499,200 | 561,600 | 592,800 | 624,000 |
| EBITDA | 25,200 | 81,600 | 157,140 | 241,737 | 342,306 |
| Depreciation | 59,000 | 30,000 | 26,490 | 23,408 | 20,698 |
| Interest | 57,500 | 46,000 | 34,500 | 23,000 | 11,500 |
| PBT | -91,300 | 5,600 | 96,150 | 195,330 | 310,108 |
| Tax | 0 | 1,400 | 24,038 | 48,832 | 77,527 |
| PAT | -91,300 | 4,200 | 72,113 | 146,497 | 232,581 |
9. Working capital
Working capital built into the project is ₹175,000. Indicative MPBF (75% of NWC) is ₹84,406. Current ratio (Y1): 4.00.
10. Loan repayment schedule
| Year | Opening | Interest | Principal | Instalment | Closing |
|---|---|---|---|---|---|
| Y1 | 500,000 | 57,500 | 100,000 | 157,500 | 400,000 |
| Y2 | 400,000 | 46,000 | 100,000 | 146,000 | 300,000 |
| Y3 | 300,000 | 34,500 | 100,000 | 134,500 | 200,000 |
| Y4 | 200,000 | 23,000 | 100,000 | 123,000 | 100,000 |
| Y5 | 100,000 | 11,500 | 100,000 | 111,500 | 0 |
Interest 11.50% p.a. · Tenure 5 years · Average DSCR 1.13 · Minimum DSCR 0.16.
11. Balance sheet (projected)
| Particulars | Y1 | Y2 | Y3 | Y4 | Y5 |
|---|---|---|---|---|---|
| Net fixed assets | 266,000 | 236,000 | 209,510 | 186,103 | 165,404 |
| Current assets | 150,055 | 162,035 | 179,852 | 199,550 | 231,698 |
| Total assets | 416,055 | 398,035 | 389,362 | 385,652 | 397,102 |
| Capital + subsidy | 100,000 | 100,000 | 100,000 | 100,000 | 100,000 |
| Reserves | -91,300 | -87,100 | -14,988 | 131,510 | 364,090 |
| Term loan o/s | 400,000 | 300,000 | 200,000 | 100,000 | 0 |
| Current liabilities | 37,514 | 40,509 | 44,963 | 49,887 | 57,925 |
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