2023

PROJECT
REPORT

Footwear bag shop

finline address
 Project at a glance

Name & Address of Unit

Footwear bag shop

finline address ,123456

Activity : Footwear & Bag shop

Email : [email protected]

Phone : 1234561234

Constitution : Proprietorship

Scheme : sme

Number of employment : 5

Total project cost : 13,75,000.00

Fixed Capital : 5,00,000.00

Working Capital : 8,75,000.00

Total Bank loan : 10,75,000.00

Promoter(s) contribution : 3,00,000.00

Term loan : 3,75,000.00 Interest : 11.00 %

Working capital loan : 7,00,000.00 Interest : 11.00 %

Name & address of promoter(s)

Name : finline sample project

Address : finline address

Phone : 1234561234

Designation : Founder

Category : na

E-mail : [email protected]
 Project Feasibility Ratio

Debt Service Coverage Ratio (Average) : 24.06

Current ratio (Average) : 8.24

Year 1 Year 2 Year 3 Year 4 Year 5

Current ratio 2.82 5.26 7.95 10.92 14.21

Quick ratio 1.86 4.20 6.79 9.64 12.80

Interest coverage ratio 35.96 23.14 27.17 32.32 39.11

Debt equity ratio 0.75 0.31 0.18 0.11 0.08

TOL/TNW 0.75 0.31 0.18 0.11 0.08

DSCR 34.80 18.43 20.26 22.28 24.50

Gross profit Sales Percentage % 70.28 % 55.78 % 55.78 % 55.78 % 55.78 %

Net profit Sales Percentage % 24.65 % 14.58 % 14.74 % 14.88 % 15.00 %

Return On Capital Employed 0.89 0.71 0.51 0.41 0.35

Net profit Sales % Quick ratio

Project Feasibility graph
Revenue v/s Expense

Expense Splitup
 Introduction

The project report for Footwear store is as follows:

The footwear industry is one of the most rapidly expanding industries globally. Increasing demand for new
and innovative footwear and emergence of various global as well as regional brands across segments in the
category is primarily driving the market. Innovative and trendy footwear are being consistently manufactured
by leading market players due to advancement in the footwear manufacturing process, technological
innovations, and development of new material.In 2017, the global footwear market size was approximately
USD 246.07 billion. Growing at a CAGR of 4.5% in the period 2017-2023, the market is projected to reach USD
320.44 billion by the end of the forecast period.
Promoter(s) Details
 Location, Land , Building & Utilities

The retail shop / online selling point is located at the busy street and having a prominant location for getting
good visibility
 Product / Services & process

The firm is focused on selling quality footwears & accessories. It is having an online presence in leading online
portals as well as retail shop in the leading commercial space of in the town
 Market potential & Strategy

India is globally the second largest footwear producer after China. India’s footwear production accounts for
approximately 9% of the global annual production of 22 billion pairs as compared to China which produces
over 60%. Key production centres in the country include Kanpur and Agra in Uttar Pradesh, Ranipet,
Vaniyambadi and Ambur in Tamil Nadu. The sector is fragmented and close to 75% production comes from
the unorganised sector including very small, small and medium enterprises.

Over the past decade, India has been witnessing a rising trend of consumer orientation towards health and
wellness. The rapid urbanization is responsible for a hectic lifestyle which has led to rise in the incidence of
lifestyle diseases. Voluntarily and mandated by their physicians, the consumers have become more health
conscious and have imbibed various physical activities into their lifestyle. The incidence of indulging in
sporting activities has also increased. This has led to an increase in spending on sportswear by the adult
population in metro and larger cities in India. The coming up of international schools with state of the art
sports infrastructure has led to greater consumption of sportswear by the school going population.
 Project Cost
Sl. no Item Amount Rs.

1 Furniture & fixtures 1,00,000.00

2 Computers/ Printers /Photocopier/Electronic gadget 1,00,000.00

3 Racks & storage/Interior works 1,00,000.00

4 Electrification & Electricity backup 1,00,000.00

5 Air-conditioning 1,00,000.00

6 Working Capital 8,75,000.00

Total 13,75,000.00
 Working Capital Computation
Sl. no Item Amount Rs.

1 Consumables / stock in hand 6,73,076.92

2 Working expense. 2,01,923.08

3 Total working capital 8,75,000.00

4 Own Contribution 1,75,000.00

5 Working capital loan 7,00,000.00

 Annual Sales / Revenue
Sales is calculated from November 2023

Sl. no Item Rate Quantity Month Unit Total Rs.

1 Revenue from Sales 812.01 X 1100 X 5 Number 44,66,065.00

Total 44,66,065.00
 Total Yearly Expense
Expense is calculated from November 2023 .

Sl. no Item Amount Rs.

1 Salary 5,00,000.00

2 Repairs and maintenance charges 5,00,000.00

3 Electricity/Gas charges 5,00,000.00

4 Stationary expenses 5,00,000.00

5 Stock purchase 5,00,000.00

6 Transportation cost 5,00,000.00

7 Marketing & advertising cost 5,00,000.00

Total 35,00,000.00
 Application of Fund
Sl. no Item Subsidy % No. Rate Amount Rs.

1 Furniture & fixtures 0.00 1 1,00,000.00 1,00,000.00

2 Computers/ Printers /Photocopier/Electronic gadget 0.00 1 1,00,000.00 1,00,000.00

3 Racks & storage/Interior works 0.00 1 1,00,000.00 1,00,000.00

4 Electrification & Electricity backup 0.00 1 1,00,000.00 1,00,000.00

5 Air-conditioning 0.00 1 1,00,000.00 1,00,000.00

Total Investment 5,00,000.00

Total Subsidy 0.00

Net Investment 5,00,000.00

 Means of Finance
Sl. no Item Amount

1 Term Loan 3,75,000.00

2 Working capital Loan 7,00,000.00

3 Total loan 10,75,000.00

4 Promoters contribution on term loan 1,25,000.00

5 Promoters contribution on working capital loan 1,75,000.00

 Profitability Statement
All figures are in lakhs
31/03/24 31/03/25 31/03/26 31/03/27 31/03/28

Revenue from operation

Revenue from Sales 44.66 117.90 129.69 142.66 156.93

Add :

Closing stock 6.73 7.40 8.14 8.95 9.85

Total 51.39 125.30 137.83 151.62 166.78

Less :

Opening stock 0 6.73 7.40 8.14 8.95

Stock purchase 5.00 13.20 14.52 15.97 17.56

Salary 5.00 13.20 14.52 15.97 17.56

Repairs and maintenance charges 5.00 13.20 14.52 15.97 17.56

Electricity/Gas charges 5.00 13.20 14.52 15.97 17.56

Total 20.00 59.53 65.48 72.03 79.23

Gross profit 31.39 65.77 72.35 79.59 87.54

Less :

Stationary expenses 5.00 13.20 14.52 15.97 17.56

Transportation cost 5.00 13.20 14.52 15.97 17.56

Marketing & advertising cost 5.00 13.20 14.52 15.97 17.56

Total 15.00 39.60 43.56 47.91 52.70

Profit before interest, tax and depreciation 16.39 26.17 28.79 31.67 34.84

Depreciation 0.21 0.47 0.41 0.36 0.31

Interest on TL 0.13 0.36 0.29 0.21 0.12

Interest on WC 0.32 0.77 0.77 0.77 0.77

Profit before tax 15.72 24.57 27.32 30.33 33.63

Income Tax 4.71 7.37 8.19 9.10 10.09

Profit after tax 11.00 17.20 19.12 21.23 23.54

 Cash flow statement
All figures are in lakhs
Cash Inflow Pre operative period 31/03/24 31/03/25 31/03/26 31/03/27 31/03/28
Capital 1.25 1.75 0 0 0 0
Subsidy 0 0 0 0 0 0
Termloan 3.75 0 0 0 0 0
Profit before tax with interest 0 16.18 25.70 28.38 31.31 34.52
Increase in WC loan 0 7.00 0 0 0 0
Depreciation 0 0.21 0.47 0.41 0.36 0.31
Increase in Current liability 0 0 0 0 0 0
Total Cash Inflow 5.00 25.14 26.17 28.79 31.67 34.84

Cash Outflow
Fixed Assets 5.00 0 0 0 0 0
Increase in Current asset 6.73 0.67 0.74 0.81 0.90
Interest on TL 0 0.13 0.36 0.29 0.21 0.12
Interest on WC 0 0.32 0.77 0.77 0.77 0.77
Income Tax 0 4.71 7.37 8.19 9.10 10.09
Decrease in Term loan 0.19 0.62 0.69 0.77 0.86
Drawing 0 0 0 0 0 0
Total Cash Outflow 5.00 12.09 9.79 10.68 11.66 12.73
Opening balance 0 0 13.04 29.42 47.53 67.54
Net Cashflow 0 13.04 16.38 18.10 20.01 22.10
Closing balance 0 13.04 29.42 47.53 67.54 89.65
 Balance sheet
All figures are in lakhs
Liability Pre operative period As of 31/03/24 31/03/25 31/03/26 31/03/27 31/03/28

A. Share holders funds

Capital 1.25 3.00 3.00 3.00 3.00 3.00

Reserve & Surplus 0 11.00 28.21 47.33 68.57 92.11

B.Non current Liabilities

Termloan 3.75 3.55 2.94 2.25 1.48 0.63

C.Current Liabilities

Working capital loan 0 7.00 7.00 7.00 7.00 7.00

Account payable 0 0 0 0 0

Total Liability 5.00 24.56 41.15 59.58 80.05 102.74

Asset

A. Non current Assets

Fixed Assets 5.00 4.79 4.31 3.90 3.54 3.23

B. Current Assets

Inventory 0 6.73 7.40 8.14 8.95 9.85

Trade receivables 0 0 0 0 0 0

Cash and cash equivalence 0 13.04 29.42 47.53 67.54 89.65

Total Asset 5.00 24.56 41.15 59.58 80.05 102.74

 Repayment of Term loan
All figures are in lakhs
Year Month Installment Outstanding at the beginning Principal repayment Interest Amount paid Outstanding at the end

1 Dec 2023 1 3.75 0.047 0.034 0.082 3.70

1 Jan 2024 2 3.70 0.048 0.034 0.082 3.65

1 Feb 2024 3 3.65 0.048 0.034 0.082 3.60

1 Mar 2024 4 3.60 0.048 0.033 0.082 3.55

2 Apr 2024 5 3.55 0.049 0.033 0.082 3.50

2 May 2024 6 3.50 0.049 0.032 0.082 3.46

2 Jun 2024 7 3.46 0.050 0.032 0.082 3.41

2 Jul 2024 8 3.41 0.050 0.031 0.082 3.36

2 Aug 2024 9 3.36 0.051 0.031 0.082 3.30

2 Sep 2024 10 3.30 0.051 0.030 0.082 3.25

2 Oct 2024 11 3.25 0.052 0.030 0.082 3.20

2 Nov 2024 12 3.20 0.052 0.029 0.082 3.15

2 Dec 2024 13 3.15 0.053 0.029 0.082 3.10

2 Jan 2025 14 3.10 0.053 0.028 0.082 3.04

2 Feb 2025 15 3.04 0.054 0.028 0.082 2.99

2 Mar 2025 16 2.99 0.054 0.027 0.082 2.94

3 Apr 2025 17 2.94 0.055 0.027 0.082 2.88

3 May 2025 18 2.88 0.055 0.026 0.082 2.83

3 Jun 2025 19 2.83 0.056 0.026 0.082 2.77

3 Jul 2025 20 2.77 0.056 0.025 0.082 2.71

3 Aug 2025 21 2.71 0.057 0.025 0.082 2.66

3 Sep 2025 22 2.66 0.057 0.024 0.082 2.60

3 Oct 2025 23 2.60 0.058 0.024 0.082 2.54

3 Nov 2025 24 2.54 0.058 0.023 0.082 2.49

3 Dec 2025 25 2.49 0.059 0.023 0.082 2.43

3 Jan 2026 26 2.43 0.059 0.022 0.082 2.37

3 Feb 2026 27 2.37 0.060 0.022 0.082 2.31

3 Mar 2026 28 2.31 0.060 0.021 0.082 2.25

4 Apr 2026 29 2.25 0.061 0.021 0.082 2.19

4 May 2026 30 2.19 0.061 0.020 0.082 2.13

4 Jun 2026 31 2.13 0.062 0.020 0.082 2.06

4 Jul 2026 32 2.06 0.063 0.019 0.082 2.00

4 Aug 2026 33 2.00 0.063 0.018 0.082 1.94

4 Sep 2026 34 1.94 0.064 0.018 0.082 1.87

4 Oct 2026 35 1.87 0.064 0.017 0.082 1.81

4 Nov 2026 36 1.81 0.065 0.017 0.082 1.74

4 Dec 2026 37 1.74 0.065 0.016 0.082 1.68

Year Month Installment Outstanding at the beginning Principal repayment Interest Amount paid Outstanding at the end

4 Jan 2027 38 1.68 0.066 0.015 0.082 1.61

4 Feb 2027 39 1.61 0.067 0.015 0.082 1.55

4 Mar 2027 40 1.55 0.067 0.014 0.082 1.48

5 Apr 2027 41 1.48 0.068 0.014 0.082 1.41

5 May 2027 42 1.41 0.069 0.013 0.082 1.34

5 Jun 2027 43 1.34 0.069 0.012 0.082 1.27

5 Jul 2027 44 1.27 0.070 0.012 0.082 1.20

5 Aug 2027 45 1.20 0.070 0.011 0.082 1.13

5 Sep 2027 46 1.13 0.071 0.010 0.082 1.06

5 Oct 2027 47 1.06 0.072 0.0098 0.082 0.99

5 Nov 2027 48 0.99 0.072 0.0091 0.082 0.92

5 Dec 2027 49 0.92 0.073 0.0085 0.082 0.85

5 Jan 2028 50 0.85 0.074 0.0078 0.082 0.78

5 Feb 2028 51 0.78 0.074 0.0071 0.082 0.70

5 Mar 2028 52 0.70 0.075 0.0064 0.082 0.63

6 Apr 2028 53 0.63 0.076 0.0057 0.082 0.55

6 May 2028 54 0.55 0.076 0.0050 0.082 0.47

6 Jun 2028 55 0.47 0.077 0.0043 0.082 0.40

6 Jul 2028 56 0.40 0.078 0.0036 0.082 0.32

6 Aug 2028 57 0.32 0.079 0.0029 0.082 0.24

6 Sep 2028 58 0.24 0.079 0.0022 0.082 0.16

6 Oct 2028 59 0.16 0.080 0.0015 0.082 0.081

6 Nov 2028 60 0.081 0.081 0 0.082 0

 Debt Service Coverage Ratio
All figures are in lakhs
Particulars 31/03/24 31/03/25 31/03/26 31/03/27 31/03/28

Receipts

a).Net Profit 11.00 17.20 19.12 21.23 23.54

b).Depreciation 0.21 0.47 0.41 0.36 0.31

c).Interest on termloan 0.13 0.36 0.29 0.21 0.12

Total 11.35 18.03 19.82 21.80 23.98

Repayments

a).Loan Principal 0.19 0.62 0.69 0.77 0.86

b).Interest on termloan 0.13 0.36 0.29 0.21 0.12

Total 0.33 0.98 0.98 0.98 0.98

DSCR 34.81 18.43 20.27 22.28 24.51

Average DSCR : 24.06

 Depreciation
All figures are in lakhs
Particulars Rate 31/03/24 31/03/25 31/03/26 31/03/27 31/03/28

Furniture & fixtures 10 1.0 0.96 0.86 0.78 0.70

Less Depreciation 0.042 0.096 0.086 0.078 0.070

Written down value 0.96 0.86 0.78 0.70 0.63

Computers/ Printers /Photocopier/Electronic gadget 15 1.0 0.94 0.80 0.68 0.58

Less Depreciation 0.063 0.14 0.12 0.10 0.086

Written down value 0.94 0.80 0.68 0.58 0.49

Racks & storage/Interior works 10 1.0 0.96 0.86 0.78 0.70

Less Depreciation 0.042 0.096 0.086 0.078 0.070

Written down value 0.96 0.86 0.78 0.70 0.63

Air-conditioning 15 1.0 0.94 0.80 0.68 0.58

Less Depreciation 0.063 0.14 0.12 0.10 0.086

Written down value 0.94 0.80 0.68 0.58 0.49

Total less depreciation 0.21 0.47 0.41 0.36 0.31

Total written down value 4.79 4.31 3.90 3.54 3.23

 Assumption
The entire projection is based on the assumption that the sales for 5 years will be

All figures are in lakhs

31/03/24 31/03/25 31/03/26 31/03/27 31/03/28

51.39 125.31 137.84 151.62 166.78

Revenue from Sales : 10718556

Also the total expense for the firm during the projection years will be as follows

31/03/24 31/03/25 31/03/26 31/03/27 31/03/28

35.00 92.40 101.64 111.80 122.98

• The depreciation is as follows

Particulars Value

Furniture & fixtures 10%

Computers/ Printers /Photocopier/Electronic gadget 15%

Racks & storage/Interior works 10%

Air-conditioning 15%

• Cost of Machinery is based on direct purchase from the market on deepest study

• Value of raw materials & utility charges as per the current market conditions

• All other assumptions are calculated based on the basis of experience of the promoter and deep study

on the working of similar model

This report is created using www.finline.in . Finline have bears no financial responsibility on or behalf of any of
the authorized signatories
 Conclusion
The project as a whole describes the scope and viability of the Trading industry and mainly of the financial,
technical and its market potential.The project guarantee sufficient fund to repay the loan and also give a good
return on capital investment. When analyzing the social- economic impact, this project is able to generate an
employment of 5 and above. It will cater the demand of Trading and thus helps the other business entities to
increase the production and service which provide service and support to this industry. Thus more cyclic
employment and livelihood generation. So in all ways, we can conclude the project is technically and socially
viable and commercially sound too.

When we take a close look at the Debt Service Coverage Ratio (DSCR), the avg: DSCR is 24.06 : 1, which is at a
higher proposition and proposes a stable venture

The Profit and Loss shows a steady growth in profit throughout the year and the firm has a higher Current
Ratio (average) of 8.24, this shows the current assets and current liabilities are managed & balanced well.