Detailed Project Report
Cast Iron Sluice Valves (Water Works)
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹61.95 L
- Term loan from bank
- ₹55.76 L
- Promoter’s contribution
- ₹6.20 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-15.43 L
- Average DSCR
- -0.40
- 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
Machine bought-in iron castings and assemble, test and paint sluice (gate) valves for water supply lines.
| Main product or service | Cast Iron Sluice Valves (Water Works) |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Water boards and water works of states and cities
- Development authorities and industrial development corporations
- Drinking water and sanitation departments
- Building utilities and industries
- Government tenders with inspection to the approved drawing
- Supply to pipeline and water-project contractors
- Dealers of pipes and valves
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| CNC centre lathe, heavy duty (1000 mm between centres, 260 mm centre height) | 1 | 12,00,000 | 12,00,000 |
| CNC centre lathe, medium duty (1000 mm between centres, 260 mm centre height) | 1 | 10,00,000 | 10,00,000 |
| Universal milling machine (850 x 200 x 380 mm working surface) | 1 | 8,00,000 | 8,00,000 |
| Radial drilling machine, medium duty, 32 mm | 1 | 4,00,000 | 4,00,000 |
| Lapping machine, 900 mm working surface | 1 | 3,00,000 | 3,00,000 |
| Drilling machine, 20 mm | 1 | 1,00,000 | 1,00,000 |
| Double-ended bench grinder, 200 mm wheel | 1 | 1,00,000 | 1,00,000 |
| Hand cutters and pneumatic grinders (× LS) | 1 | 1,00,000 | 1,00,000 |
| DG set, 30 kVA | 1 | 10,00,000 | 10,00,000 |
| Universal testing machine | 1 | 4,00,000 | 4,00,000 |
| Hydraulic pressure testing machine (1000 PSI) and body/flange testing facility (× LS) | 1 | 1,00,000 | 1,00,000 |
| Measuring equipment, gauges and weighing machine (× LS) | 1 | 1,50,000 | 1,50,000 |
| Chemical analysis equipment and metallographic testing lab (× LS) | 1 | 2,50,000 | 2,50,000 |
| Total | 59,00,000 |
Pre-filled from: DC-MSME import-substitution DPR — Sluice Valves. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Cast-iron sluice valve castings — 38 tonnes a month at ₹100 a kg = ₹38,00,000
- Spindles, nuts, bolts, bonnets, sealing gaskets, chemicals and other components to BIS standards — ₹17,00,000 a month
- Other consumables — ₹20,000 a month
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 59.00 |
| Contingency | 2.95 |
| Total fixed capital | 61.95 |
| Working capital margin | 0.00 |
| Total project cost | 61.95 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 6.20 | 10.0 |
| Term loan from bank | 55.76 | 90.0 |
| Total | 61.95 | 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 | 1.24 | 1.24 | 1.24 | 1.24 | 1.24 | 1.24 | 1.24 |
| Insurance | 0.31 | 0.31 | 0.31 | 0.31 | 0.31 | 0.31 | 0.31 |
| Total cost of operations | 4.43 | 4.43 | 4.43 | 4.43 | 4.43 | 4.43 | 4.43 |
| Operating profit (EBITDA) | -4.43 | -4.43 | -4.43 | -4.43 | -4.43 | -4.43 | -4.43 |
| Depreciation | 9.29 | 7.90 | 6.71 | 5.71 | 4.85 | 4.12 | 3.50 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 6.03 | 5.23 | 4.29 | 3.34 | 2.40 | 1.45 | 0.51 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -19.76 | -17.56 | -15.43 | -13.48 | -11.68 | -10.01 | -8.44 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -19.76 | -17.56 | -15.43 | -13.48 | -11.68 | -10.01 | -8.44 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -19.76 | -17.56 | -15.43 | -13.48 | -11.68 | -10.01 | -8.44 |
| Depreciation | 9.29 | 7.90 | 6.71 | 5.71 | 4.85 | 4.12 | 3.50 |
| Cash accruals (PAT + depreciation) | -10.46 | -9.66 | -8.71 | -7.77 | -6.83 | -5.88 | -4.94 |
| Term loan repaid | 4.29 | 8.58 | 8.58 | 8.58 | 8.58 | 8.58 | 8.58 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -14.75 | -18.24 | -17.29 | -16.35 | -15.40 | -14.46 | -13.52 |
| Cash and bank | -14.75 | -32.99 | -50.28 | -66.63 | -82.03 | -96.49 | -110.01 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 6.20 | 6.20 | 6.20 | 6.20 | 6.20 | 6.20 | 6.20 |
| Reserves and surplus | -19.76 | -37.31 | -52.74 | -66.22 | -77.89 | -87.90 | -96.35 |
| Term loan outstanding | 51.47 | 42.89 | 34.31 | 25.73 | 17.16 | 8.58 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 37.91 | 11.77 | -12.23 | -34.29 | -54.54 | -73.13 | -90.15 |
| Net fixed assets | 52.66 | 44.76 | 38.05 | 32.34 | 27.49 | 23.36 | 19.86 |
| 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 | -14.75 | -32.99 | -50.28 | -66.63 | -82.03 | -96.49 | -110.01 |
| Total assets | 37.91 | 11.77 | -12.23 | -34.29 | -54.54 | -73.13 | -90.15 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -0.43 | -0.32 | -0.34 | -0.37 | -0.40 | -0.44 | -0.49 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -0.40 |
|---|---|
| Lowest DSCR | -0.49 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 9.29 | 7.90 | 6.71 | 5.71 | 4.85 | 4.12 | 3.50 |
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 | 55.76 | 6.03 | 4.29 | 51.47 |
| 2 | 51.47 | 5.23 | 8.58 | 42.89 |
| 3 | 42.89 | 4.29 | 8.58 | 34.31 |
| 4 | 34.31 | 3.34 | 8.58 | 25.73 |
| 5 | 25.73 | 2.40 | 8.58 | 17.16 |
| 6 | 17.16 | 1.45 | 8.58 | 8.58 |
| 7 | 8.58 | 0.51 | 8.58 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- Factory licence
- BIS licence for sluice valves to IS 14846:2000
- No-objection or consent from the State Pollution Control Board
18 Government schemes that may apply
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
19 Sources
- DC-MSME import-substitution DPR — Sluice Valves — https://dcmsme.gov.in/42_Sluice%20Valve%20by%20VM%20Jha-converted.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.