Detailed Project Report
Cotton Knitted (Hosiery) Fabric Unit
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹93.75 L
- Term loan from bank
- ₹84.38 L
- Promoter’s contribution
- ₹9.38 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-21.87 L
- Average DSCR
- -0.31
- 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
Knit cotton yarn into tube or flat fabric on circular and flat knitting machines for T-shirt, innerwear and sportswear makers.
| Main product or service | Cotton Knitted (Hosiery) Fabric Unit |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- T-shirt, innerwear and sportswear makers
- Children's and baby wear makers
- Nightwear makers
- Fabric processors and traders
- Job work for garment units
- Direct sale of grey fabric rolls
- Export buyers sourcing fabric from India
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Single jersey circular knitting machines (× 2) | 1 | 20,00,000 | 20,00,000 |
| Double jersey circular knitting machines (× 2) | 1 | 30,00,000 | 30,00,000 |
| Flat bed knitting machine | 1 | 25,00,000 | 25,00,000 |
| Sinker body knitting machines, 22 gauge, 17 in dia (× 8) | 1 | 4,64,000 | 4,64,000 |
| Sinker body knitting machines, 18 gauge, 18 in dia (× 8) | 1 | 4,80,000 | 4,80,000 |
| Sinker body knitting machines, 24 gauge, 15 in dia (× 8) | 1 | 4,40,000 | 4,40,000 |
| Electronic weighing balance | 1 | 45,000 | 45,000 |
| Total | 89,29,000 |
Pre-filled from: SIDBI Stand-Up Mitra project profile — Cotton Knitted Fabric; DC-MSME project profile — Cotton Knitted Fabrics. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Cotton hosiery yarn, 20s–40s count — DC-MSME: 13,600 kg of 40s yarn a month at ₹120 a kg
- Polyester-cotton or Lycra yarn when the customer asks for it
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 89.29 |
| Contingency | 4.46 |
| Total fixed capital | 93.75 |
| Working capital margin | 0.00 |
| Total project cost | 93.75 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 9.38 | 10.0 |
| Term loan from bank | 84.38 | 90.0 |
| Total | 93.75 | 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 | 1.88 | 1.88 | 1.88 | 1.88 | 1.88 | 1.88 | 1.88 |
| Insurance | 0.47 | 0.47 | 0.47 | 0.47 | 0.47 | 0.47 | 0.47 |
| Total cost of operations | 5.22 | 5.22 | 5.22 | 5.22 | 5.22 | 5.22 | 5.22 |
| Operating profit (EBITDA) | -5.22 | -5.22 | -5.22 | -5.22 | -5.22 | -5.22 | -5.22 |
| Depreciation | 14.06 | 11.95 | 10.16 | 8.64 | 7.34 | 6.24 | 5.30 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 9.13 | 7.91 | 6.49 | 5.06 | 3.63 | 2.20 | 0.77 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -28.42 | -25.09 | -21.87 | -18.92 | -16.19 | -13.67 | -11.30 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -28.42 | -25.09 | -21.87 | -18.92 | -16.19 | -13.67 | -11.30 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -28.42 | -25.09 | -21.87 | -18.92 | -16.19 | -13.67 | -11.30 |
| Depreciation | 14.06 | 11.95 | 10.16 | 8.64 | 7.34 | 6.24 | 5.30 |
| Cash accruals (PAT + depreciation) | -14.36 | -13.14 | -11.71 | -10.28 | -8.85 | -7.43 | -6.00 |
| Term loan repaid | 6.49 | 12.98 | 12.98 | 12.98 | 12.98 | 12.98 | 12.98 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -20.85 | -26.12 | -24.69 | -23.26 | -21.83 | -20.41 | -18.98 |
| Cash and bank | -20.85 | -46.97 | -71.66 | -94.92 | -116.75 | -137.16 | -156.14 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 9.38 | 9.38 | 9.38 | 9.38 | 9.38 | 9.38 | 9.38 |
| Reserves and surplus | -28.42 | -53.51 | -75.38 | -94.30 | -110.49 | -124.16 | -135.46 |
| Term loan outstanding | 77.89 | 64.91 | 51.93 | 38.94 | 25.96 | 12.98 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 58.84 | 20.77 | -14.08 | -45.98 | -75.15 | -101.80 | -126.08 |
| Net fixed assets | 79.69 | 67.74 | 57.58 | 48.94 | 41.60 | 35.36 | 30.06 |
| 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 | -20.85 | -46.97 | -71.66 | -94.92 | -116.75 | -137.16 | -156.14 |
| Total assets | 58.84 | 20.77 | -14.08 | -45.98 | -75.15 | -101.80 | -126.08 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -0.33 | -0.25 | -0.27 | -0.29 | -0.31 | -0.34 | -0.38 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -0.31 |
|---|---|
| Lowest DSCR | -0.38 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 14.06 | 11.95 | 10.16 | 8.64 | 7.34 | 6.24 | 5.30 |
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 | 84.38 | 9.13 | 6.49 | 77.89 |
| 2 | 77.89 | 7.91 | 12.98 | 64.91 |
| 3 | 64.91 | 6.49 | 12.98 | 51.93 |
| 4 | 51.93 | 5.06 | 12.98 | 38.94 |
| 5 | 38.94 | 3.63 | 12.98 | 25.96 |
| 6 | 25.96 | 2.20 | 12.98 | 12.98 |
| 7 | 12.98 | 0.77 | 12.98 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST
- Shops and Establishment and professional tax registration with the local body
- Factory licence, EPF and ESI registration depending on workers and power
- State Pollution Control Board consent where it applies (knitting itself creates little pollution)
18 Government schemes that may apply
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
- Stand-Up India
19 Sources
- SIDBI Stand-Up Mitra project profile — Cotton Knitted Fabric — https://www.standupmitra.in/Default/ViewFile/?id=1516113177963_Cotton%20Knitted%20Fabrics.docx&path=ProjectProfile
- DC-MSME project profile — Cotton Knitted Fabrics — https://www.dcmsme.gov.in/publications/pmryprof/hosiery/ch4.pdf
- World Customs Organization – HS Nomenclature 2022 edition — https://www.wcoomd.org/en/topics/nomenclature/instrument-and-tools/hs-nomenclature-2022-edition/hs-nomenclature-2022-edition.aspx
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.