Detailed Project Report
Auto Leaf Springs for Trucks and Light Commercial Vehicles
—
Prepared on: 27 October 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹20.79 L
- Term loan from bank
- ₹18.71 L
- Promoter’s contribution
- ₹2.08 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-7.09 L
- Average DSCR
- -0.91
- 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, heat, forge, harden and temper spring-steel flats into leaf springs for trucks, LCVs, trailers and tractor trolleys.
| Main product or service | Auto Leaf Springs for Trucks and Light Commercial Vehicles |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Truck and LCV owners (replacement springs)
- Auto spare-parts dealers
- Trailer and tractor-trolley makers
- Vehicle makers (OEM)
- Spare-parts wholesalers and retailers
- Direct OEM supply contracts
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Band saw machine | 1 | 65,000 | 65,000 |
| Shearing machine | 1 | 40,000 | 40,000 |
| Oil-fired hearth furnace for blanks | 1 | 4,50,000 | 4,50,000 |
| Forging / camber rolling machine | 1 | 2,00,000 | 2,00,000 |
| Eye rolling machine | 1 | 1,20,000 | 1,20,000 |
| Eye grinding machine | 1 | 1,00,000 | 1,00,000 |
| Tempering furnace | 1 | 1,20,000 | 1,20,000 |
| Shot blasting machine | 1 | 4,50,000 | 4,50,000 |
| Spring test equipment | 1 | 3,20,000 | 3,20,000 |
| Weighing machine, tools and fixtures (× lump sum) | 1 | 1,15,000 | 1,15,000 |
| Total | 19,80,000 |
Pre-filled from: SIDBI Stand-Up Mitra project profile — Auto Leaf Springs (for LCV, HCV); World Customs Organization – HS Nomenclature 2022, Chapter 73. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Alloy spring-steel flats (to IS 3431) — ₹55–70 a kg in the profile
- U-bolts and fasteners — to assemble the spring set
- Furnace oil and quenching oil — for heating and hardening
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 19.80 |
| Contingency | 0.99 |
| Total fixed capital | 20.79 |
| Working capital margin | 0.00 |
| Total project cost | 20.79 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 2.08 | 10.0 |
| Term loan from bank | 18.71 | 90.0 |
| Total | 20.79 | 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 | 0.42 | 0.42 | 0.42 | 0.42 | 0.42 | 0.42 | 0.42 |
| Insurance | 0.10 | 0.10 | 0.10 | 0.10 | 0.10 | 0.10 | 0.10 |
| Total cost of operations | 3.40 | 3.40 | 3.40 | 3.40 | 3.40 | 3.40 | 3.40 |
| Operating profit (EBITDA) | -3.40 | -3.40 | -3.40 | -3.40 | -3.40 | -3.40 | -3.40 |
| Depreciation | 3.12 | 2.65 | 2.25 | 1.92 | 1.63 | 1.38 | 1.18 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 2.03 | 1.75 | 1.44 | 1.12 | 0.80 | 0.49 | 0.17 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -8.54 | -7.81 | -7.09 | -6.44 | -5.83 | -5.27 | -4.75 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -8.54 | -7.81 | -7.09 | -6.44 | -5.83 | -5.27 | -4.75 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -8.54 | -7.81 | -7.09 | -6.44 | -5.83 | -5.27 | -4.75 |
| Depreciation | 3.12 | 2.65 | 2.25 | 1.92 | 1.63 | 1.38 | 1.18 |
| Cash accruals (PAT + depreciation) | -5.42 | -5.15 | -4.84 | -4.52 | -4.20 | -3.89 | -3.57 |
| Term loan repaid | 1.44 | 2.88 | 2.88 | 2.88 | 2.88 | 2.88 | 2.88 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -6.86 | -8.03 | -7.72 | -7.40 | -7.08 | -6.77 | -6.45 |
| Cash and bank | -6.86 | -14.90 | -22.61 | -30.01 | -37.10 | -43.86 | -50.31 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 2.08 | 2.08 | 2.08 | 2.08 | 2.08 | 2.08 | 2.08 |
| Reserves and surplus | -8.54 | -16.35 | -23.44 | -29.88 | -35.71 | -40.98 | -45.73 |
| Term loan outstanding | 17.27 | 14.39 | 11.51 | 8.64 | 5.76 | 2.88 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 10.81 | 0.12 | -9.85 | -19.16 | -27.87 | -36.02 | -43.65 |
| Net fixed assets | 17.67 | 15.02 | 12.77 | 10.85 | 9.22 | 7.84 | 6.66 |
| 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 | -6.86 | -14.90 | -22.61 | -30.01 | -37.10 | -43.86 | -50.31 |
| Total assets | 10.81 | 0.12 | -9.85 | -19.16 | -27.87 | -36.02 | -43.65 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -0.98 | -0.73 | -0.79 | -0.85 | -0.92 | -1.01 | -1.11 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -0.91 |
|---|---|
| Lowest DSCR | -1.11 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 3.12 | 2.65 | 2.25 | 1.92 | 1.63 | 1.38 | 1.18 |
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 | 18.71 | 2.03 | 1.44 | 17.27 |
| 2 | 17.27 | 1.75 | 2.88 | 14.39 |
| 3 | 14.39 | 1.44 | 2.88 | 11.51 |
| 4 | 11.51 | 1.12 | 2.88 | 8.64 |
| 5 | 8.64 | 0.80 | 2.88 | 5.76 |
| 6 | 5.76 | 0.49 | 2.88 | 2.88 |
| 7 | 2.88 | 0.17 | 2.88 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- State Pollution Control Board consent (oil-fired furnace, shot blasting)
- Factory licence
- BIS certification if a Quality Control Order covers the spring steel or springs you use — check with BIS
- Fire safety clearance for the furnace area
18 Government schemes that may apply
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
- Stand-Up India
- Pradhan Mantri MUDRA Yojana (PMMY) – Shishu, Kishor, Tarun, Tarun Plus
19 Sources
- SIDBI Stand-Up Mitra project profile — Auto Leaf Springs (for LCV, HCV) — https://www.standupmitra.in/Default/ViewFile/?id=1516798171211_Auto%20Leaf%20Spring%20for%20LCV%20%26%20HCV.docx&path=ProjectProfile
- World Customs Organization – HS Nomenclature 2022, Chapter 73 — https://www.wcoomd.org/-/media/wco/public/global/pdf/topics/nomenclature/instruments-and-tools/hs-nomenclature-2022/2022/1573_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.