Detailed Project Report
Auto Cylinder Liner Casting and Machining
—
Prepared on: 27 October 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹18.85 L
- Term loan from bank
- ₹12.25 L
- Promoter’s contribution
- ₹1.88 L
- Subsidy
- ₹4.71 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-6.34 L
- Average DSCR
- -1.38
- 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
Melt cast iron in an induction furnace, spin-cast it into cylinder liners (sleeves) and machine them for engine makers and the repair trade.
| Main product or service | Auto Cylinder Liner Casting and Machining |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Engine and vehicle makers
- Engine rebuilders and machine shops
- Auto spare-parts dealers
- Direct supply to OEMs and rebuilders
- Spare-parts distributors
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Induction melting furnace for cast-iron alloys | 1 | 5,00,000 | 5,00,000 |
| Centrifugal casting machines (× 4) | 1 | 2,40,000 | 2,40,000 |
| Cylindrical/internal grinding attachments (× 2) | 1 | 1,20,000 | 1,20,000 |
| Honing machine | 1 | 80,000 | 80,000 |
| Shot blasting machine | 1 | 80,000 | 80,000 |
| Lathes with boring attachments (× 3) | 1 | 3,00,000 | 3,00,000 |
| Drilling machine | 1 | 65,000 | 65,000 |
| Bench/flexible-shaft grinders (× 2) | 1 | 60,000 | 60,000 |
| Moulds, tools and gauges (× 1 lot) | 1 | 1,50,000 | 1,50,000 |
| Electrical installation (× 1 lot) | 1 | 2,00,000 | 2,00,000 |
| Total | 17,95,000 |
Pre-filled from: SIDBI Stand-Up Mitra project profile — Auto Cylinder Liners. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Pig iron and cast-iron scrap — ₹25–35 a kg by grade
- Alloying additives and fluxes — added during melting
- Aluminium alloys — for some small two-wheeler engines
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 17.95 |
| Contingency | 0.90 |
| Total fixed capital | 18.85 |
| Working capital margin | 0.00 |
| Total project cost | 18.85 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 1.88 | 10.0 |
| Subsidy | 4.71 | 25.0 |
| Term loan from bank | 12.25 | 65.0 |
| Total | 18.85 | 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 | 2.83 | 2.40 | 2.04 | 1.74 | 1.48 | 1.25 | 1.07 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 1.33 | 1.15 | 0.94 | 0.73 | 0.53 | 0.32 | 0.11 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -7.50 | -6.90 | -6.34 | -5.82 | -5.35 | -4.93 | -4.53 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -7.50 | -6.90 | -6.34 | -5.82 | -5.35 | -4.93 | -4.53 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -7.50 | -6.90 | -6.34 | -5.82 | -5.35 | -4.93 | -4.53 |
| Depreciation | 2.83 | 2.40 | 2.04 | 1.74 | 1.48 | 1.25 | 1.07 |
| Cash accruals (PAT + depreciation) | -4.68 | -4.50 | -4.29 | -4.09 | -3.88 | -3.67 | -3.46 |
| Term loan repaid | 0.94 | 1.88 | 1.88 | 1.88 | 1.88 | 1.88 | 1.88 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -5.62 | -6.38 | -6.18 | -5.97 | -5.76 | -5.56 | -5.35 |
| Cash and bank | -5.62 | -12.00 | -18.18 | -24.15 | -29.92 | -35.47 | -40.82 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 6.60 | 6.60 | 6.60 | 6.60 | 6.60 | 6.60 | 6.60 |
| Reserves and surplus | -7.50 | -14.41 | -20.74 | -26.56 | -31.92 | -36.84 | -41.37 |
| Term loan outstanding | 11.31 | 9.42 | 7.54 | 5.65 | 3.77 | 1.88 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 10.40 | 1.61 | -6.61 | -14.31 | -21.55 | -28.36 | -34.78 |
| Net fixed assets | 16.02 | 13.62 | 11.57 | 9.84 | 8.36 | 7.11 | 6.04 |
| 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 | -5.62 | -12.00 | -18.18 | -24.15 | -29.92 | -35.47 | -40.82 |
| Total assets | 10.40 | 1.61 | -6.61 | -14.31 | -21.55 | -28.36 | -34.78 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -1.48 | -1.10 | -1.19 | -1.28 | -1.39 | -1.52 | -1.68 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -1.38 |
|---|---|
| Lowest DSCR | -1.68 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 2.83 | 2.40 | 2.04 | 1.74 | 1.48 | 1.25 | 1.07 |
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 | 12.25 | 1.33 | 0.94 | 11.31 |
| 2 | 11.31 | 1.15 | 1.88 | 9.42 |
| 3 | 9.42 | 0.94 | 1.88 | 7.54 |
| 4 | 7.54 | 0.73 | 1.88 | 5.65 |
| 5 | 5.65 | 0.53 | 1.88 | 3.77 |
| 6 | 3.77 | 0.32 | 1.88 | 1.88 |
| 7 | 1.88 | 0.11 | 1.88 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST
- State Pollution Control Board consent to establish and operate (foundry)
- Factory licence
- Heavy power connection approval from the electricity board
- IEC code if you export
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
- SIDBI Stand-Up Mitra project profile — Auto Cylinder Liners — https://www.standupmitra.in/Default/ViewFile/?id=1516806988230_Auto%20Cylinder%20Liners.docx&path=ProjectProfile
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.