Detailed Project Report
Knitted Woollen Vests
—
Prepared on: 27 October 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹11.96 L
- Term loan from bank
- ₹7.77 L
- Promoter’s contribution
- ₹1.20 L
- Subsidy
- ₹2.99 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-5.07 L
- Average DSCR
- -2.06
- 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 woollen yarn into fabric on a circular knitting machine, then cut, stitch, press and pack woollen vests.
| Main product or service | Knitted Woollen Vests |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Winter-wear wholesalers
- Hosiery and garment shops
- Buyers in foreign markets (the profile says demand is both domestic and foreign)
- Supply to wholesale markets before winter
- Direct supply to retail shops
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Circular knitting machine, 18–19 inch dia, 18 gauge, 1 HP | 1 | 0 | 0 |
| Power-driven cloth cutting machine, 8 inch | 1 | 0 | 0 |
| Chain stitching machine (× 2) | 1 | 0 | 0 |
| Overlock stitching machine (× 2) | 1 | 0 | 0 |
| Flat-bed steam iron press (× 2) | 1 | 0 | 0 |
| Hand-operated hydraulic press | 1 | 0 | 0 |
| Total machinery and equipment (× —) | 1 | 11,39,000 | 11,39,000 |
| Total | 11,39,000 |
Pre-filled from: MSME-DI Hyderabad project profile — Knitted Woollen Vests; World Customs Organization – HS Nomenclature 2022, Chapter 61. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Woollen yarn, 24s single count — 1,250 kg a month
- Woollen yarn, 20s single count — 1,500 kg a month
- Labels, sewing thread and packing material — all raw material together ₹6,26,250 a month
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 11.39 |
| Contingency | 0.57 |
| Total fixed capital | 11.96 |
| Working capital margin | 0.00 |
| Total project cost | 11.96 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 1.20 | 10.0 |
| Subsidy | 2.99 | 25.0 |
| Term loan from bank | 7.77 | 65.0 |
| Total | 11.96 | 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 | 0.24 | 0.24 | 0.24 | 0.24 | 0.24 | 0.24 | 0.24 |
| Insurance | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 |
| Total cost of operations | 3.18 | 3.18 | 3.18 | 3.18 | 3.18 | 3.18 | 3.18 |
| Operating profit (EBITDA) | -3.18 | -3.18 | -3.18 | -3.18 | -3.18 | -3.18 | -3.18 |
| Depreciation | 1.79 | 1.52 | 1.30 | 1.10 | 0.94 | 0.80 | 0.68 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.84 | 0.73 | 0.60 | 0.47 | 0.33 | 0.20 | 0.07 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -5.81 | -5.43 | -5.07 | -4.75 | -4.45 | -4.18 | -3.93 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -5.81 | -5.43 | -5.07 | -4.75 | -4.45 | -4.18 | -3.93 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -5.81 | -5.43 | -5.07 | -4.75 | -4.45 | -4.18 | -3.93 |
| Depreciation | 1.79 | 1.52 | 1.30 | 1.10 | 0.94 | 0.80 | 0.68 |
| Cash accruals (PAT + depreciation) | -4.02 | -3.91 | -3.78 | -3.64 | -3.51 | -3.38 | -3.25 |
| Term loan repaid | 0.60 | 1.20 | 1.20 | 1.20 | 1.20 | 1.20 | 1.20 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -4.62 | -5.10 | -4.97 | -4.84 | -4.71 | -4.58 | -4.45 |
| Cash and bank | -4.62 | -9.72 | -14.69 | -19.54 | -24.24 | -28.82 | -33.27 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 4.19 | 4.19 | 4.19 | 4.19 | 4.19 | 4.19 | 4.19 |
| Reserves and surplus | -5.81 | -11.25 | -16.32 | -21.07 | -25.52 | -29.69 | -33.62 |
| Term loan outstanding | 7.18 | 5.98 | 4.78 | 3.59 | 2.39 | 1.20 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 5.55 | -1.08 | -7.35 | -13.29 | -18.94 | -24.31 | -29.43 |
| Net fixed assets | 10.17 | 8.64 | 7.34 | 6.24 | 5.31 | 4.51 | 3.83 |
| 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 | -4.62 | -9.72 | -14.69 | -19.54 | -24.24 | -28.82 | -33.27 |
| Total assets | 5.55 | -1.08 | -7.35 | -13.29 | -18.94 | -24.31 | -29.43 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -2.21 | -1.65 | -1.77 | -1.91 | -2.08 | -2.27 | -2.51 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -2.06 |
|---|---|
| Lowest DSCR | -2.51 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 1.79 | 1.52 | 1.30 | 1.10 | 0.94 | 0.80 | 0.68 |
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 | 7.77 | 0.84 | 0.60 | 7.18 |
| 2 | 7.18 | 0.73 | 1.20 | 5.98 |
| 3 | 5.98 | 0.60 | 1.20 | 4.78 |
| 4 | 4.78 | 0.47 | 1.20 | 3.59 |
| 5 | 3.59 | 0.33 | 1.20 | 2.39 |
| 6 | 2.39 | 0.20 | 1.20 | 1.20 |
| 7 | 1.20 | 0.07 | 1.20 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- Trade licence from the local body
- Factory licence if your worker count crosses the Factories Act limit
- BIS standards named in the profile (IS 3330, IS 2518, IS 3353) as the quality reference
18 Government schemes that may apply
- Prime Minister's Employment Generation Programme (PMEGP)
- Pradhan Mantri MUDRA Yojana (PMMY) – Shishu, Kishor, Tarun, Tarun Plus
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
- Stand-Up India
19 Sources
- MSME-DI Hyderabad project profile — Knitted Woollen Vests — https://msmedihyderabad.gov.in/documents/report/9e3a49a6d5112665606ceacae070ad1e.doc
- World Customs Organization – HS Nomenclature 2022, Chapter 61 — https://www.wcoomd.org/-/media/wco/public/global/pdf/topics/nomenclature/instruments-and-tools/hs-nomenclature-2022/2022/1161_2022e.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.