Detailed Project Report
Court Shoes (Formal Leather Slip-On Shoes)
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹10.06 L
- Term loan from bank
- ₹9.06 L
- Promoter’s contribution
- ₹1.01 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-4.92 L
- Average DSCR
- -1.74
- 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 formal leather court shoes by cutting and stitching uppers and cementing them onto ready-made unit soles.
| Main product or service | Court Shoes (Formal Leather Slip-On Shoes) |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Footwear wholesalers and retail shoe shops
- Shoe brands that buy from contract makers
- Export buyers and buying agents
- Supply to wholesalers and shoe shops
- Contract manufacturing for brands
- Export orders through buyers and market agencies
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Single-needle flat-bed sewing machine (imported) (× 5) | 1 | 1,05,000 | 1,05,000 |
| Single-needle post-bed sewing machine (imported) (× 2) | 1 | 82,000 | 82,000 |
| Single-needle cylinder-bed sewing machine (imported) | 1 | 67,000 | 67,000 |
| Hydraulic swing-arm upper clicking press (imported) | 1 | 2,50,000 | 2,50,000 |
| Upper leather skiving machine (imported) | 1 | 42,000 | 42,000 |
| Zig-zag sewing machine (imported) | 1 | 43,000 | 43,000 |
| 4-station stuck-on sole press with compressor | 1 | 25,000 | 25,000 |
| Finishing and polishing machine | 1 | 15,000 | 15,000 |
| Strap cutting machine | 1 | 17,000 | 17,000 |
| Power stamping machine (imported) | 1 | 80,400 | 80,400 |
| Heat activator | 1 | 7,000 | 7,000 |
| PVC shoe lasts (× 400 pairs) | 1 | 2,00,000 | 2,00,000 |
| Tools and equipment | 1 | 25,000 | 25,000 |
| Total | 9,58,400 |
Pre-filled from: DC-MSME project profile — Court Shoe. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Upper leather (goat, softy and similar) — 90,000 units a month at ₹5 each = ₹4,50,000; the profile prints the unit as "Dcu" (2003 prices)
- Lining leather — 20,000 sq ft a month at ₹25 per sq ft = ₹5,00,000
- Lining cloth — 500 m a month at ₹20 per m = ₹10,000
- Insoles, toe puffs and stiffeners — for 5,000 pairs at ₹20 a pair = ₹1,00,000
- PU adhesive, grinderies and decorative trims — for 5,000 pairs at ₹30 a pair = ₹1,50,000
- Unit soles (PU, PVC or TPR) — 5,000 pairs at ₹50 a pair = ₹2,50,000
- Packing material — for 5,000 pairs at ₹14 a pair = ₹70,000
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 9.58 |
| Contingency | 0.48 |
| Total fixed capital | 10.06 |
| Working capital margin | 0.00 |
| Total project cost | 10.06 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 1.01 | 10.0 |
| Term loan from bank | 9.06 | 90.0 |
| Total | 10.06 | 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 | 0.20 | 0.20 | 0.20 | 0.20 | 0.20 | 0.20 | 0.20 |
| Insurance | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 |
| Total cost of operations | 3.13 | 3.13 | 3.13 | 3.13 | 3.13 | 3.13 | 3.13 |
| Operating profit (EBITDA) | -3.13 | -3.13 | -3.13 | -3.13 | -3.13 | -3.13 | -3.13 |
| Depreciation | 1.51 | 1.28 | 1.09 | 0.93 | 0.79 | 0.67 | 0.57 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.98 | 0.85 | 0.70 | 0.54 | 0.39 | 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 | -5.62 | -5.26 | -4.92 | -4.60 | -4.31 | -4.04 | -3.78 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -5.62 | -5.26 | -4.92 | -4.60 | -4.31 | -4.04 | -3.78 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -5.62 | -5.26 | -4.92 | -4.60 | -4.31 | -4.04 | -3.78 |
| Depreciation | 1.51 | 1.28 | 1.09 | 0.93 | 0.79 | 0.67 | 0.57 |
| Cash accruals (PAT + depreciation) | -4.11 | -3.98 | -3.83 | -3.67 | -3.52 | -3.37 | -3.21 |
| Term loan repaid | 0.70 | 1.39 | 1.39 | 1.39 | 1.39 | 1.39 | 1.39 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -4.81 | -5.37 | -5.22 | -5.07 | -4.91 | -4.76 | -4.61 |
| Cash and bank | -4.81 | -10.18 | -15.40 | -20.47 | -25.39 | -30.15 | -34.76 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 1.01 | 1.01 | 1.01 | 1.01 | 1.01 | 1.01 | 1.01 |
| Reserves and surplus | -5.62 | -10.89 | -15.80 | -20.41 | -24.71 | -28.75 | -32.54 |
| Term loan outstanding | 8.36 | 6.97 | 5.57 | 4.18 | 2.79 | 1.39 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 3.75 | -2.91 | -9.22 | -15.22 | -20.92 | -26.35 | -31.53 |
| Net fixed assets | 8.55 | 7.27 | 6.18 | 5.25 | 4.47 | 3.80 | 3.23 |
| 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 | -4.81 | -10.18 | -15.40 | -20.47 | -25.39 | -30.15 | -34.76 |
| Total assets | 3.75 | -2.91 | -9.22 | -15.22 | -20.92 | -26.35 | -31.53 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -1.87 | -1.40 | -1.50 | -1.62 | -1.76 | -1.92 | -2.12 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -1.74 |
|---|---|
| Lowest DSCR | -2.12 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 1.51 | 1.28 | 1.09 | 0.93 | 0.79 | 0.67 | 0.57 |
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 | 9.06 | 0.98 | 0.70 | 8.36 |
| 2 | 8.36 | 0.85 | 1.39 | 6.97 |
| 3 | 6.97 | 0.70 | 1.39 | 5.57 |
| 4 | 5.57 | 0.54 | 1.39 | 4.18 |
| 5 | 4.18 | 0.39 | 1.39 | 2.79 |
| 6 | 2.79 | 0.24 | 1.39 | 1.39 |
| 7 | 1.39 | 0.08 | 1.39 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- Factory licence
- BIS certification under the footwear Quality Control Orders — check the current dates and any relief for micro and small units
- Trade licence from the local body
- Import Export Code (IEC) if you export
18 Government schemes that may apply
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
19 Sources
- DC-MSME project profile — Court Shoe — https://www.dcmsme.gov.in/publications/pmryprof/leather/ch3.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.