Detailed Project Report
Gents' Leather Long Boots (Welted)
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹18.81 L
- Term loan from bank
- ₹16.92 L
- Promoter’s contribution
- ₹1.88 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-6.69 L
- Average DSCR
- -1.00
- 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
Cut, close, last and sole welted long leather boots with double insoles on a semi-mechanised line.
| Main product or service | Gents' Leather Long Boots (Welted) |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Overseas footwear importers
- Footwear wholesalers and retailers in India
- Export houses placing job orders
- Export orders through buying agents
- Domestic wholesalers
- Retail chains
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Forepart lasting machine (imported) | 1 | 7,00,000 | 7,00,000 |
| Side and seat lasting machine (imported) | 1 | 8,00,000 | 8,00,000 |
| Clicking press | 1 | 1,00,000 | 1,00,000 |
| Skiving machine | 1 | 60,000 | 60,000 |
| Combined finishing machine | 1 | 55,000 | 55,000 |
| Flat-bed industrial sewing machines (× 4) | 1 | 36,000 | 36,000 |
| Wooden lasts (× 200 pairs) | 1 | 40,000 | 40,000 |
| Total | 17,91,000 |
Pre-filled from: DC-MSME project profile — Gents Leather Long Boot (Welted); DGFT — ITC(HS) classification of export and import items. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Upper leather — 87,500 dcm a month at ₹4 per dcm
- Softy lining leather — 50,000 dcm a month at ₹2.50 per dcm
- Vegetable-tanned sole leather for insole, toe puff and stiffener — 875 kg a month at ₹100 a kg
- Rubber soles — 500 sheets a month at ₹350 a sheet
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 17.91 |
| Contingency | 0.90 |
| Total fixed capital | 18.81 |
| Working capital margin | 0.00 |
| Total project cost | 18.81 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 1.88 | 10.0 |
| Term loan from bank | 16.92 | 90.0 |
| Total | 18.81 | 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 | 0.38 | 0.38 | 0.38 | 0.38 | 0.38 | 0.38 | 0.38 |
| Insurance | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 |
| Total cost of operations | 3.35 | 3.35 | 3.35 | 3.35 | 3.35 | 3.35 | 3.35 |
| Operating profit (EBITDA) | -3.35 | -3.35 | -3.35 | -3.35 | -3.35 | -3.35 | -3.35 |
| Depreciation | 2.82 | 2.40 | 2.04 | 1.73 | 1.47 | 1.25 | 1.06 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 1.83 | 1.59 | 1.30 | 1.01 | 0.73 | 0.44 | 0.16 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -8.00 | -7.34 | -6.69 | -6.10 | -5.55 | -5.04 | -4.57 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -8.00 | -7.34 | -6.69 | -6.10 | -5.55 | -5.04 | -4.57 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -8.00 | -7.34 | -6.69 | -6.10 | -5.55 | -5.04 | -4.57 |
| Depreciation | 2.82 | 2.40 | 2.04 | 1.73 | 1.47 | 1.25 | 1.06 |
| Cash accruals (PAT + depreciation) | -5.18 | -4.94 | -4.65 | -4.36 | -4.08 | -3.79 | -3.51 |
| Term loan repaid | 1.30 | 2.60 | 2.60 | 2.60 | 2.60 | 2.60 | 2.60 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -6.48 | -7.54 | -7.25 | -6.97 | -6.68 | -6.40 | -6.11 |
| Cash and bank | -6.48 | -14.03 | -21.28 | -28.25 | -34.93 | -41.33 | -47.44 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 1.88 | 1.88 | 1.88 | 1.88 | 1.88 | 1.88 | 1.88 |
| Reserves and surplus | -8.00 | -15.34 | -22.03 | -28.12 | -33.67 | -38.72 | -43.29 |
| Term loan outstanding | 15.62 | 13.02 | 10.42 | 7.81 | 5.21 | 2.60 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 9.50 | -0.44 | -9.73 | -18.43 | -26.59 | -34.23 | -41.41 |
| Net fixed assets | 15.98 | 13.59 | 11.55 | 9.82 | 8.34 | 7.09 | 6.03 |
| 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 | -6.48 | -14.03 | -21.28 | -28.25 | -34.93 | -41.33 | -47.44 |
| Total assets | 9.50 | -0.44 | -9.73 | -18.43 | -26.59 | -34.23 | -41.41 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -1.07 | -0.80 | -0.86 | -0.93 | -1.01 | -1.10 | -1.21 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -1.00 |
|---|---|
| Lowest DSCR | -1.21 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 2.82 | 2.40 | 2.04 | 1.73 | 1.47 | 1.25 | 1.06 |
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 | 16.92 | 1.83 | 1.30 | 15.62 |
| 2 | 15.62 | 1.59 | 2.60 | 13.02 |
| 3 | 13.02 | 1.30 | 2.60 | 10.42 |
| 4 | 10.42 | 1.01 | 2.60 | 7.81 |
| 5 | 7.81 | 0.73 | 2.60 | 5.21 |
| 6 | 5.21 | 0.44 | 2.60 | 2.60 |
| 7 | 2.60 | 0.16 | 2.60 | 0.00 |
17 Licences and registrations
- Udyam
- GST
- BIS certification where the footwear Quality Control Order covers your product
- Trade licence
- Importer-Exporter Code for exports
18 Government schemes that may apply
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
- Stand-Up India
19 Sources
- DC-MSME project profile — Gents Leather Long Boot (Welted) — https://www.dcmsme.gov.in/publications/pmryprof/leather/ch6.pdf
- DGFT — ITC(HS) classification of export and import items — https://www.dgft.gov.in/CP/?opt=itchs-import-export
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.