Detailed Project Report
Cotton-Lycra Stretch Knitwear (Slacks and Sportswear)
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹5.04 L
- Term loan from bank
- ₹3.28 L
- Promoter’s contribution
- ₹0.50 L
- Subsidy
- ₹1.26 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-3.80 L
- Average DSCR
- -4.62
- 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
Buy ready cotton-Lycra knitted fabric, then cut and stitch it into slacks, sportswear and other stretch garments.
| Main product or service | Cotton-Lycra Stretch Knitwear (Slacks and Sportswear) |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Hosiery and garment wholesalers
- Sportswear and readymade garment shops
- Garment exporters and buying houses
- Sale to wholesalers in hosiery markets
- Direct supply to retail shops
- Job work or supply to exporters
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| High-speed four-thread overlock machine with motor and stand (imported) (× 5) | 1 | 2,25,000 | 2,25,000 |
| Flat folding machine with stand and table (imported) (× 3) | 1 | 1,80,000 | 1,80,000 |
| Straight-knife cutting machine | 1 | 40,000 | 40,000 |
| Rib cutting machine with motor and stand | 1 | 5,000 | 5,000 |
| Sewing machine with motor and stand (× 2) | 1 | 10,000 | 10,000 |
| Scissors, press, measuring instruments and other small items | 1 | 10,000 | 10,000 |
| Laboratory equipment (weighing balance, magnifying glass, microscope, testing chemicals) | 1 | 10,000 | 10,000 |
| Total | 4,80,000 |
Pre-filled from: DC-MSME project profile — Cotton Lycra (Spandex) Knitted Wears. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Dyed or bleached knitted fabric (40s cotton 90%, 40 denier Lycra 10%) — 2,800 kg a month at ₹200 per kg = ₹5,60,000 (2003 prices)
- Elastic, zips, hooks, buttons and stickers — ₹1,12,500 a month
- Sewing thread — ₹5,000 a month
- Labels, size labels, polythene bags and mill-board boxes — ₹50,000 a month
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 4.80 |
| Contingency | 0.24 |
| Total fixed capital | 5.04 |
| Working capital margin | 0.00 |
| Total project cost | 5.04 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.50 | 10.0 |
| Subsidy | 1.26 | 25.0 |
| Term loan from bank | 3.28 | 65.0 |
| Total | 5.04 | 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 | 0.10 | 0.10 | 0.10 | 0.10 | 0.10 | 0.10 | 0.10 |
| Insurance | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 |
| Total cost of operations | 3.01 | 3.01 | 3.01 | 3.01 | 3.01 | 3.01 | 3.01 |
| Operating profit (EBITDA) | -3.01 | -3.01 | -3.01 | -3.01 | -3.01 | -3.01 | -3.01 |
| Depreciation | 0.76 | 0.64 | 0.55 | 0.46 | 0.39 | 0.34 | 0.29 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.35 | 0.31 | 0.25 | 0.20 | 0.14 | 0.09 | 0.03 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -4.12 | -3.96 | -3.80 | -3.67 | -3.54 | -3.43 | -3.32 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -4.12 | -3.96 | -3.80 | -3.67 | -3.54 | -3.43 | -3.32 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -4.12 | -3.96 | -3.80 | -3.67 | -3.54 | -3.43 | -3.32 |
| Depreciation | 0.76 | 0.64 | 0.55 | 0.46 | 0.39 | 0.34 | 0.29 |
| Cash accruals (PAT + depreciation) | -3.36 | -3.31 | -3.26 | -3.20 | -3.15 | -3.09 | -3.04 |
| Term loan repaid | 0.25 | 0.50 | 0.50 | 0.50 | 0.50 | 0.50 | 0.50 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -3.61 | -3.82 | -3.76 | -3.71 | -3.65 | -3.60 | -3.54 |
| Cash and bank | -3.61 | -7.43 | -11.19 | -14.90 | -18.55 | -22.14 | -25.68 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 1.76 | 1.76 | 1.76 | 1.76 | 1.76 | 1.76 | 1.76 |
| Reserves and surplus | -4.12 | -8.07 | -11.88 | -15.54 | -19.08 | -22.51 | -25.83 |
| Term loan outstanding | 3.02 | 2.52 | 2.02 | 1.51 | 1.01 | 0.50 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 0.67 | -3.79 | -8.10 | -12.27 | -16.31 | -20.24 | -24.07 |
| Net fixed assets | 4.28 | 3.64 | 3.10 | 2.63 | 2.24 | 1.90 | 1.62 |
| 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 | -3.61 | -7.43 | -11.19 | -14.90 | -18.55 | -22.14 | -25.68 |
| Total assets | 0.67 | -3.79 | -8.10 | -12.27 | -16.31 | -20.24 | -24.07 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -4.96 | -3.71 | -3.98 | -4.29 | -4.66 | -5.10 | -5.63 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -4.62 |
|---|---|
| Lowest DSCR | -5.63 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 0.76 | 0.64 | 0.55 | 0.46 | 0.39 | 0.34 | 0.29 |
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 | 3.28 | 0.35 | 0.25 | 3.02 |
| 2 | 3.02 | 0.31 | 0.50 | 2.52 |
| 3 | 2.52 | 0.25 | 0.50 | 2.02 |
| 4 | 2.02 | 0.20 | 0.50 | 1.51 |
| 5 | 1.51 | 0.14 | 0.50 | 1.01 |
| 6 | 1.01 | 0.09 | 0.50 | 0.50 |
| 7 | 0.50 | 0.03 | 0.50 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- Trade licence from the local body
- Factory licence if the number of workers crosses the Factories Act limit
- Import Export Code (IEC) 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 — Cotton Lycra (Spandex) Knitted Wears — https://www.dcmsme.gov.in/publications/pmryprof/hosiery/ch6.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.