Detailed Project Report
Interlock (Double-Knit) Cotton Fabric
—
Prepared on: 27 October 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹7.46 L
- Term loan from bank
- ₹4.85 L
- Promoter’s contribution
- ₹0.75 L
- Subsidy
- ₹1.86 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-4.25 L
- Average DSCR
- -3.18
- 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 combed cotton yarn on interlock machines into thick, soft double-knit fabric for innerwear, sportswear and children's wear.
| Main product or service | Interlock (Double-Knit) Cotton Fabric |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Undergarment makers
- Sportswear makers
- Children's and baby wear makers
- Fabric traders and exporters
- Direct supply of grey fabric rolls to garment units
- Fabric traders in hosiery centres
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Interlock knitting machines, 18 gauge, 14 in dia, with motor (× 4) | 1 | 2,00,000 | 2,00,000 |
| Interlock knitting machines, 18 gauge, 15 in dia, with motor (× 4) | 1 | 2,20,000 | 2,20,000 |
| Interlock knitting machines, 20 gauge, 16 in dia, with motor (× 2) | 1 | 1,20,000 | 1,20,000 |
| Interlock knitting machines, 20 gauge, 17 in dia, with motor (× 2) | 1 | 1,30,000 | 1,30,000 |
| Weighing balance | 1 | 30,000 | 30,000 |
| Workshop accessories (× 1 lot) | 1 | 10,000 | 10,000 |
| Total | 7,10,000 |
Pre-filled from: DC-MSME project profile — Interlock Knitted Fabric; World Customs Organization – HS Nomenclature 2022 edition. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Cotton grey yarn of various counts (combed 30s–50s) — 10,300 kg a month at ₹125 a kg in the profile
- Texturised filament yarn, 80–160 denier, for synthetic interlock
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 7.10 |
| Contingency | 0.36 |
| Total fixed capital | 7.46 |
| Working capital margin | 0.00 |
| Total project cost | 7.46 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.75 | 10.0 |
| Subsidy | 1.86 | 25.0 |
| Term loan from bank | 4.85 | 65.0 |
| Total | 7.46 | 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 | 0.15 | 0.15 | 0.15 | 0.15 | 0.15 | 0.15 | 0.15 |
| Insurance | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 |
| Total cost of operations | 3.07 | 3.07 | 3.07 | 3.07 | 3.07 | 3.07 | 3.07 |
| Operating profit (EBITDA) | -3.07 | -3.07 | -3.07 | -3.07 | -3.07 | -3.07 | -3.07 |
| Depreciation | 1.12 | 0.95 | 0.81 | 0.69 | 0.58 | 0.50 | 0.42 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.52 | 0.45 | 0.37 | 0.29 | 0.21 | 0.13 | 0.04 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -4.71 | -4.47 | -4.25 | -4.04 | -3.86 | -3.69 | -3.53 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -4.71 | -4.47 | -4.25 | -4.04 | -3.86 | -3.69 | -3.53 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -4.71 | -4.47 | -4.25 | -4.04 | -3.86 | -3.69 | -3.53 |
| Depreciation | 1.12 | 0.95 | 0.81 | 0.69 | 0.58 | 0.50 | 0.42 |
| Cash accruals (PAT + depreciation) | -3.59 | -3.52 | -3.44 | -3.36 | -3.27 | -3.19 | -3.11 |
| Term loan repaid | 0.37 | 0.75 | 0.75 | 0.75 | 0.75 | 0.75 | 0.75 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -3.96 | -4.27 | -4.18 | -4.10 | -4.02 | -3.94 | -3.86 |
| Cash and bank | -3.96 | -8.23 | -12.41 | -16.52 | -20.54 | -24.48 | -28.33 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 2.61 | 2.61 | 2.61 | 2.61 | 2.61 | 2.61 | 2.61 |
| Reserves and surplus | -4.71 | -9.18 | -13.43 | -17.47 | -21.33 | -25.02 | -28.55 |
| Term loan outstanding | 4.47 | 3.73 | 2.98 | 2.24 | 1.49 | 0.75 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 2.37 | -2.84 | -7.84 | -12.63 | -17.23 | -21.66 | -25.94 |
| Net fixed assets | 6.34 | 5.39 | 4.58 | 3.89 | 3.31 | 2.81 | 2.39 |
| 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 | -3.96 | -8.23 | -12.41 | -16.52 | -20.54 | -24.48 | -28.33 |
| Total assets | 2.37 | -2.84 | -7.84 | -12.63 | -17.23 | -21.66 | -25.94 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -3.42 | -2.56 | -2.74 | -2.96 | -3.21 | -3.52 | -3.88 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -3.18 |
|---|---|
| Lowest DSCR | -3.88 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 1.12 | 0.95 | 0.81 | 0.69 | 0.58 | 0.50 | 0.42 |
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 | 4.85 | 0.52 | 0.37 | 4.47 |
| 2 | 4.47 | 0.45 | 0.75 | 3.73 |
| 3 | 3.73 | 0.37 | 0.75 | 2.98 |
| 4 | 2.98 | 0.29 | 0.75 | 2.24 |
| 5 | 2.24 | 0.21 | 0.75 | 1.49 |
| 6 | 1.49 | 0.13 | 0.75 | 0.75 |
| 7 | 0.75 | 0.04 | 0.75 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST
- Trade licence from the local body
- Factory licence, EPF and ESI registration depending on workers and power
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
- DC-MSME project profile — Interlock Knitted Fabric — https://www.dcmsme.gov.in/publications/pmryprof/hosiery/ch12.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.