Detailed Project Report
Leather Portfolio Bags (Office and Executive Bags)
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹4.94 L
- Term loan from bank
- ₹3.21 L
- Promoter’s contribution
- ₹0.49 L
- Subsidy
- ₹1.23 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-3.78 L
- Average DSCR
- -4.71
- 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, skive, stitch and fit leather into portfolio bags that office-goers, business people and medical representatives carry.
| Main product or service | Leather Portfolio Bags (Office and Executive Bags) |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Office-goers and business people, through bag and luggage shops
- Medical representatives and the companies that issue bags to them
- Leather goods wholesalers
- Export buyers
- Supply to bag and luggage shops
- Bulk orders from companies
- Export orders made to the buyer's specification
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Flat-bed stitching machine (× 2) | 1 | 20,000 | 20,000 |
| Cylinder-bed stitching machine (imported) | 1 | 1,00,000 | 1,00,000 |
| Skiving machine | 1 | 50,000 | 50,000 |
| Splitting machine | 1 | 2,00,000 | 2,00,000 |
| Punching machine | 1 | 20,000 | 20,000 |
| Roughing, buffing and polishing machine | 1 | 20,000 | 20,000 |
| Cutting table for components (× 2) | 1 | 10,000 | 10,000 |
| Tools and equipment | 1 | 50,000 | 50,000 |
| Total | 4,70,000 |
Pre-filled from: DC-MSME project profile — Portfolio Bag. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Vegetable-tanned finished leather or semi-chrome leather, brown, coffee brown or black, 1.2 mm to 1.5 mm thick — about 1,800 kg a month at ₹200 per kg = ₹3,60,000 (2003 prices)
- Grinderies — locks, D-rings, zips, rivets, adhesive and thread — ₹100 per bag = ₹1,50,000 a month
- Packing — ₹4 per bag = ₹6,000 a month
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 4.70 |
| Contingency | 0.24 |
| Total fixed capital | 4.94 |
| Working capital margin | 0.00 |
| Total project cost | 4.94 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.49 | 10.0 |
| Subsidy | 1.23 | 25.0 |
| Term loan from bank | 3.21 | 65.0 |
| Total | 4.94 | 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 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 |
| Total cost of operations | 3.00 | 3.00 | 3.00 | 3.00 | 3.00 | 3.00 | 3.00 |
| Operating profit (EBITDA) | -3.00 | -3.00 | -3.00 | -3.00 | -3.00 | -3.00 | -3.00 |
| Depreciation | 0.74 | 0.63 | 0.53 | 0.45 | 0.39 | 0.33 | 0.28 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.35 | 0.30 | 0.25 | 0.19 | 0.14 | 0.08 | 0.03 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -4.09 | -3.93 | -3.78 | -3.65 | -3.53 | -3.42 | -3.31 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -4.09 | -3.93 | -3.78 | -3.65 | -3.53 | -3.42 | -3.31 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -4.09 | -3.93 | -3.78 | -3.65 | -3.53 | -3.42 | -3.31 |
| Depreciation | 0.74 | 0.63 | 0.53 | 0.45 | 0.39 | 0.33 | 0.28 |
| Cash accruals (PAT + depreciation) | -3.35 | -3.30 | -3.25 | -3.20 | -3.14 | -3.09 | -3.03 |
| Term loan repaid | 0.25 | 0.49 | 0.49 | 0.49 | 0.49 | 0.49 | 0.49 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -3.60 | -3.80 | -3.74 | -3.69 | -3.63 | -3.58 | -3.53 |
| Cash and bank | -3.60 | -7.40 | -11.14 | -14.83 | -18.46 | -22.04 | -25.57 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 1.73 | 1.73 | 1.73 | 1.73 | 1.73 | 1.73 | 1.73 |
| Reserves and surplus | -4.09 | -8.02 | -11.81 | -15.46 | -18.99 | -22.40 | -25.71 |
| Term loan outstanding | 2.96 | 2.47 | 1.97 | 1.48 | 0.99 | 0.49 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 0.60 | -3.83 | -8.11 | -12.25 | -16.27 | -20.18 | -23.99 |
| Net fixed assets | 4.19 | 3.57 | 3.03 | 2.58 | 2.19 | 1.86 | 1.58 |
| 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 | -3.60 | -7.40 | -11.14 | -14.83 | -18.46 | -22.04 | -25.57 |
| Total assets | 0.60 | -3.83 | -8.11 | -12.25 | -16.27 | -20.18 | -23.99 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -5.06 | -3.78 | -4.06 | -4.38 | -4.76 | -5.20 | -5.74 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -4.71 |
|---|---|
| Lowest DSCR | -5.74 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 0.74 | 0.63 | 0.53 | 0.45 | 0.39 | 0.33 | 0.28 |
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 | 3.21 | 0.35 | 0.25 | 2.96 |
| 2 | 2.96 | 0.30 | 0.49 | 2.47 |
| 3 | 2.47 | 0.25 | 0.49 | 1.97 |
| 4 | 1.97 | 0.19 | 0.49 | 1.48 |
| 5 | 1.48 | 0.14 | 0.49 | 0.99 |
| 6 | 0.99 | 0.08 | 0.49 | 0.49 |
| 7 | 0.49 | 0.03 | 0.49 | 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 — Portfolio Bag — https://www.dcmsme.gov.in/publications/pmryprof/leather/ch17.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.