Detailed Project Report
Artistic Leather Goods (Santiniketan-Style Embossed Bags and Purses)
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹9.56 L
- Term loan from bank
- ₹6.21 L
- Promoter’s contribution
- ₹0.96 L
- Subsidy
- ₹2.39 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-4.63 L
- Average DSCR
- -2.53
- 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
Emboss, hand-colour and stitch goat leather into decorated shopping bags, vanity bags, purses, wallets and jewellery cases.
| Main product or service | Artistic Leather Goods (Santiniketan-Style Embossed Bags and Purses) |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Craft emporia and handicraft shops
- Gift and fashion-accessory retailers
- Export buying houses
- Tourists and visitors at craft centres
- Supply to emporia and retailers
- Export orders made to the buyer's sample
- Craft fairs and exhibitions
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Ball press (× 2) | 1 | 30,000 | 30,000 |
| Flat-bed single-needle sewing machine with motor (× 2) | 1 | 20,000 | 20,000 |
| Cylinder-bed sewing machine (× 2) | 1 | 6,00,000 | 6,00,000 |
| Board-cutting machine (× 2) | 1 | 45,000 | 45,000 |
| Glazing machine (× 2) | 1 | 1,00,000 | 1,00,000 |
| Skiving machine (× 2) | 1 | 70,000 | 70,000 |
| Mini compressor | 1 | 5,000 | 5,000 |
| Zinc blocks for design embossing | 1 | 5,000 | 5,000 |
| Wooden vat for washing | 1 | 10,000 | 10,000 |
| Tools and equipment | 1 | 3,000 | 3,000 |
| Furniture and equipment | 1 | 22,000 | 22,000 |
| Total | 9,10,000 |
Pre-filled from: DC-MSME project profile — Artistic Leather Goods; DGFT — ITC(HS) classification of export and import items. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- E.I. tanned goat leather — 5,750 sq ft a month across the five products, at ₹40–52 per sq ft
- Lining cloth (silk, poplin and plain lining) — 425 m a month at ₹60–100 a metre
- Dye and spirit — costed per piece
- Thread and adhesive — costed per piece
- Fittings — zips, buttons, D and O rings, locks, decorative fittings — costed per piece
- Paper board and packing — paper board 10 kg a month at ₹100 a kg for shopping bags
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 9.10 |
| Contingency | 0.46 |
| Total fixed capital | 9.56 |
| Working capital margin | 0.00 |
| Total project cost | 9.56 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.96 | 10.0 |
| Subsidy | 2.39 | 25.0 |
| Term loan from bank | 6.21 | 65.0 |
| Total | 9.56 | 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 | 0.19 | 0.19 | 0.19 | 0.19 | 0.19 | 0.19 | 0.19 |
| Insurance | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 |
| Total cost of operations | 3.12 | 3.12 | 3.12 | 3.12 | 3.12 | 3.12 | 3.12 |
| Operating profit (EBITDA) | -3.12 | -3.12 | -3.12 | -3.12 | -3.12 | -3.12 | -3.12 |
| Depreciation | 1.43 | 1.22 | 1.04 | 0.88 | 0.75 | 0.64 | 0.54 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.67 | 0.58 | 0.48 | 0.37 | 0.27 | 0.16 | 0.06 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -5.22 | -4.92 | -4.63 | -4.37 | -4.13 | -3.92 | -3.72 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -5.22 | -4.92 | -4.63 | -4.37 | -4.13 | -3.92 | -3.72 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -5.22 | -4.92 | -4.63 | -4.37 | -4.13 | -3.92 | -3.72 |
| Depreciation | 1.43 | 1.22 | 1.04 | 0.88 | 0.75 | 0.64 | 0.54 |
| Cash accruals (PAT + depreciation) | -3.79 | -3.70 | -3.60 | -3.49 | -3.39 | -3.28 | -3.18 |
| Term loan repaid | 0.48 | 0.96 | 0.96 | 0.96 | 0.96 | 0.96 | 0.96 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -4.27 | -4.66 | -4.55 | -4.45 | -4.34 | -4.24 | -4.13 |
| Cash and bank | -4.27 | -8.93 | -13.48 | -17.92 | -22.27 | -26.50 | -30.63 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 3.34 | 3.34 | 3.34 | 3.34 | 3.34 | 3.34 | 3.34 |
| Reserves and surplus | -5.22 | -10.14 | -14.78 | -19.15 | -23.28 | -27.20 | -30.91 |
| Term loan outstanding | 5.73 | 4.78 | 3.82 | 2.87 | 1.91 | 0.96 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 3.85 | -2.02 | -7.61 | -12.94 | -18.03 | -22.90 | -27.57 |
| Net fixed assets | 8.12 | 6.90 | 5.87 | 4.99 | 4.24 | 3.60 | 3.06 |
| 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 | -4.27 | -8.93 | -13.48 | -17.92 | -22.27 | -26.50 | -30.63 |
| Total assets | 3.85 | -2.02 | -7.61 | -12.94 | -18.03 | -22.90 | -27.57 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -2.71 | -2.03 | -2.18 | -2.35 | -2.55 | -2.79 | -3.08 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -2.53 |
|---|---|
| Lowest DSCR | -3.08 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 1.43 | 1.22 | 1.04 | 0.88 | 0.75 | 0.64 | 0.54 |
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 | 6.21 | 0.67 | 0.48 | 5.73 |
| 2 | 5.73 | 0.58 | 0.96 | 4.78 |
| 3 | 4.78 | 0.48 | 0.96 | 3.82 |
| 4 | 3.82 | 0.37 | 0.96 | 2.87 |
| 5 | 2.87 | 0.27 | 0.96 | 1.91 |
| 6 | 1.91 | 0.16 | 0.96 | 0.96 |
| 7 | 0.96 | 0.06 | 0.96 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- Trade licence from the local body
- NOC from the State Pollution Control Board (the profile asks for it)
- IEC code and Council for Leather Exports membership if you export
18 Government schemes that may apply
- Prime Minister's Employment Generation Programme (PMEGP)
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
19 Sources
- DC-MSME project profile — Artistic Leather Goods — https://www.dcmsme.gov.in/old/reports/leather/Artistic_leather.pdf
- DGFT — ITC(HS) classification of export and import items — https://www.dgft.gov.in/CP/?opt=itchs-import-export
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.