Detailed Project Report
Canvas Shoes
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹14.25 L
- Term loan from bank
- ₹9.26 L
- Promoter’s contribution
- ₹1.43 L
- Subsidy
- ₹3.56 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-5.49 L
- Average DSCR
- -1.76
- 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
Make rubber-soled canvas shoes for schools, sports and uniformed services by calendering rubber and vulcanising the shoe.
| Main product or service | Canvas Shoes |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Schools, students and children
- Players and sports users
- Army, Navy, Air Force, police, Home Guards and NCC
- Everyday casual wearers
- Institutional and government tenders
- Footwear wholesalers and retailers
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Mixing mill 4 × 36 in with chilled cast rolls, reduction gear and 50 HP motor | 1 | 0 | 0 |
| Cloth calendering machine 8 × 24 in with 25 HP motor | 1 | 0 | 0 |
| Rubber spreading machine 12 × 30 in with 25 HP motor | 1 | 0 | 0 |
| Vulcaniser 9 × 5 ft | 1 | 0 | 0 |
| Boiler | 1 | 0 | 0 |
| Embossing machine | 1 | 0 | 0 |
| Churner with 1 HP motor | 1 | 0 | 0 |
| Eyeleting machine (hand operated) | 1 | 0 | 0 |
| Clicking press, 5 tonnes, power operated, 5 HP | 1 | 0 | 0 |
| Industrial sewing machine, ½ HP | 1 | 0 | 0 |
| Aluminium and iron shoe lasts, moulds, clicking dies, trolleys, office equipment | 1 | 0 | 0 |
| Equipment total | 1 | 13,57,500 | 13,57,500 |
| Total | 13,57,500 |
Pre-filled from: KVIC Project Profile — Canvas Shoes (PMEGP). Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Canvas cloth and rubber (for uppers and soles) — raw material ₹16.08 lakh a year at full capacity
- Labels and packing material — ₹1.00 lakh a year
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 13.58 |
| Contingency | 0.68 |
| Total fixed capital | 14.25 |
| Working capital margin | 0.00 |
| Total project cost | 14.25 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 1.43 | 10.0 |
| Subsidy | 3.56 | 25.0 |
| Term loan from bank | 9.26 | 65.0 |
| Total | 14.25 | 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 | 0.29 | 0.29 | 0.29 | 0.29 | 0.29 | 0.29 | 0.29 |
| Insurance | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 |
| Total cost of operations | 3.24 | 3.24 | 3.24 | 3.24 | 3.24 | 3.24 | 3.24 |
| Operating profit (EBITDA) | -3.24 | -3.24 | -3.24 | -3.24 | -3.24 | -3.24 | -3.24 |
| Depreciation | 2.14 | 1.82 | 1.54 | 1.31 | 1.12 | 0.95 | 0.81 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 1.00 | 0.87 | 0.71 | 0.56 | 0.40 | 0.24 | 0.08 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -6.38 | -5.92 | -5.49 | -5.10 | -4.75 | -4.43 | -4.13 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -6.38 | -5.92 | -5.49 | -5.10 | -4.75 | -4.43 | -4.13 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -6.38 | -5.92 | -5.49 | -5.10 | -4.75 | -4.43 | -4.13 |
| Depreciation | 2.14 | 1.82 | 1.54 | 1.31 | 1.12 | 0.95 | 0.81 |
| Cash accruals (PAT + depreciation) | -4.24 | -4.11 | -3.95 | -3.79 | -3.63 | -3.48 | -3.32 |
| Term loan repaid | 0.71 | 1.43 | 1.43 | 1.43 | 1.43 | 1.43 | 1.43 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -4.95 | -5.53 | -5.37 | -5.22 | -5.06 | -4.90 | -4.75 |
| Cash and bank | -4.95 | -10.48 | -15.86 | -21.07 | -26.13 | -31.04 | -35.78 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 4.99 | 4.99 | 4.99 | 4.99 | 4.99 | 4.99 | 4.99 |
| Reserves and surplus | -6.38 | -12.30 | -17.79 | -22.90 | -27.65 | -32.08 | -36.20 |
| Term loan outstanding | 8.55 | 7.13 | 5.70 | 4.28 | 2.85 | 1.43 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 7.16 | -0.18 | -7.10 | -13.63 | -19.81 | -25.66 | -31.21 |
| Net fixed assets | 12.12 | 10.30 | 8.75 | 7.44 | 6.32 | 5.38 | 4.57 |
| 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 | -4.95 | -10.48 | -15.86 | -21.07 | -26.13 | -31.04 | -35.78 |
| Total assets | 7.16 | -0.18 | -7.10 | -13.63 | -19.81 | -25.66 | -31.21 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -1.89 | -1.41 | -1.51 | -1.63 | -1.77 | -1.94 | -2.14 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -1.76 |
|---|---|
| Lowest DSCR | -2.14 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 2.14 | 1.82 | 1.54 | 1.31 | 1.12 | 0.95 | 0.81 |
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 | 9.26 | 1.00 | 0.71 | 8.55 |
| 2 | 8.55 | 0.87 | 1.43 | 7.13 |
| 3 | 7.13 | 0.71 | 1.43 | 5.70 |
| 4 | 5.70 | 0.56 | 1.43 | 4.28 |
| 5 | 4.28 | 0.40 | 1.43 | 2.85 |
| 6 | 2.85 | 0.24 | 1.43 | 1.43 |
| 7 | 1.43 | 0.08 | 1.43 | 0.00 |
17 Licences and registrations
- Udyam
- GST
- Pollution Control Board consent (rubber processing and boiler)
- Boiler registration with the state boiler inspectorate
- BIS certification if a footwear Quality Control Order covers your product — check first
- Factory licence once the worker count crosses the limit
18 Government schemes that may apply
- Prime Minister's Employment Generation Programme (PMEGP)
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
- Stand-Up India
19 Sources
- KVIC Project Profile — Canvas Shoes (PMEGP) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/CANVAS_SHOES_%28_POLYMER_AND_CHEMICAL_BASED_INDUSTRY_%29.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.