Detailed Project Report
Children's Shoes
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹3.39 L
- Term loan from bank
- ₹2.20 L
- Promoter’s contribution
- ₹0.34 L
- Subsidy
- ₹0.85 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-3.50 L
- Average DSCR
- -6.77
- 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 children's shoes with PVC or rubber soles, stitching uppers and cementing soles on lasts.
| Main product or service | Children's Shoes |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Parents buying for children
- Schools
- Footwear shops
- Footwear wholesalers
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Upper sewing machine (power) and treadle upper sewing machine | 1 | 0 | 0 |
| Skiving machine | 1 | 0 | 0 |
| Cementing press with compressor | 1 | 0 | 0 |
| Combined finishing machine with 1 HP motor | 1 | 0 | 0 |
| Foil stamping machine | 1 | 0 | 0 |
| PVC shoe lasts (₹400 a pair) (× 200 pairs) | 1 | 0 | 0 |
| Hand tools, office and workshop furniture | 1 | 0 | 0 |
| All equipment together | 1 | 3,23,000 | 3,23,000 |
| Total | 3,23,000 |
Pre-filled from: KVIC Project Profile — Children Shoe (PMEGP); World Customs Organization – HS Nomenclature 2022, Chapter 64. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- PVC or rubber soles (leather soles on request) — raw material ₹48.00 lakh a year at full capacity in the profile
- Upper material, lining, thread and adhesive — for uppers and cementing
- Labels and packing material — ₹25,000 a year
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 3.23 |
| Contingency | 0.16 |
| Total fixed capital | 3.39 |
| Working capital margin | 0.00 |
| Total project cost | 3.39 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.34 | 10.0 |
| Subsidy | 0.85 | 25.0 |
| Term loan from bank | 2.20 | 65.0 |
| Total | 3.39 | 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 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 |
| Insurance | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 |
| Total cost of operations | 2.96 | 2.96 | 2.96 | 2.96 | 2.96 | 2.96 | 2.96 |
| Operating profit (EBITDA) | -2.96 | -2.96 | -2.96 | -2.96 | -2.96 | -2.96 | -2.96 |
| Depreciation | 0.51 | 0.43 | 0.37 | 0.31 | 0.27 | 0.23 | 0.19 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.24 | 0.21 | 0.17 | 0.13 | 0.09 | 0.06 | 0.02 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -3.71 | -3.60 | -3.50 | -3.41 | -3.33 | -3.25 | -3.18 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -3.71 | -3.60 | -3.50 | -3.41 | -3.33 | -3.25 | -3.18 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -3.71 | -3.60 | -3.50 | -3.41 | -3.33 | -3.25 | -3.18 |
| Depreciation | 0.51 | 0.43 | 0.37 | 0.31 | 0.27 | 0.23 | 0.19 |
| Cash accruals (PAT + depreciation) | -3.20 | -3.17 | -3.13 | -3.10 | -3.06 | -3.02 | -2.98 |
| Term loan repaid | 0.17 | 0.34 | 0.34 | 0.34 | 0.34 | 0.34 | 0.34 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -3.37 | -3.51 | -3.47 | -3.44 | -3.40 | -3.36 | -3.32 |
| Cash and bank | -3.37 | -6.88 | -10.36 | -13.79 | -17.19 | -20.55 | -23.88 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 1.19 | 1.19 | 1.19 | 1.19 | 1.19 | 1.19 | 1.19 |
| Reserves and surplus | -3.71 | -7.32 | -10.82 | -14.23 | -17.55 | -20.80 | -23.98 |
| Term loan outstanding | 2.03 | 1.70 | 1.36 | 1.02 | 0.68 | 0.34 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | -0.49 | -4.43 | -8.27 | -12.02 | -15.69 | -19.27 | -22.79 |
| Net fixed assets | 2.88 | 2.45 | 2.08 | 1.77 | 1.50 | 1.28 | 1.09 |
| 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 | -3.37 | -6.88 | -10.36 | -13.79 | -17.19 | -20.55 | -23.88 |
| Total assets | -0.49 | -4.43 | -8.27 | -12.02 | -15.69 | -19.27 | -22.79 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -7.26 | -5.43 | -5.83 | -6.29 | -6.83 | -7.47 | -8.25 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -6.77 |
|---|---|
| Lowest DSCR | -8.25 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 0.51 | 0.43 | 0.37 | 0.31 | 0.27 | 0.23 | 0.19 |
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 | 2.20 | 0.24 | 0.17 | 2.03 |
| 2 | 2.03 | 0.21 | 0.34 | 1.70 |
| 3 | 1.70 | 0.17 | 0.34 | 1.36 |
| 4 | 1.36 | 0.13 | 0.34 | 1.02 |
| 5 | 1.02 | 0.09 | 0.34 | 0.68 |
| 6 | 0.68 | 0.06 | 0.34 | 0.34 |
| 7 | 0.34 | 0.02 | 0.34 | 0.00 |
17 Licences and registrations
- Udyam
- GST
- Trade licence
- BIS licence if the footwear Quality Control Order covers your product — check before you start
18 Government schemes that may apply
- Prime Minister's Employment Generation Programme (PMEGP)
- 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 — Children Shoe (PMEGP) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/CHILDREN_SHOE_%28_POLYMER_AND_CHEMICAL_BASED_INDUSTRY_%29.pdf
- World Customs Organization – HS Nomenclature 2022, Chapter 64 — https://www.wcoomd.org/-/media/wco/public/global/pdf/topics/nomenclature/instruments-and-tools/hs-nomenclature-2022/2022/1264_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.