Detailed Project Report
Diesel Engine Cylinder Block Machining
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹3.59 L
- Term loan from bank
- ₹2.33 L
- Promoter’s contribution
- ₹0.36 L
- Subsidy
- ₹0.90 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-3.54 L
- Average DSCR
- -6.40
- 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
Buy grey cast iron cylinder block castings and machine, drill and tap them for diesel engine makers and the spares market.
| Main product or service | Diesel Engine Cylinder Block Machining |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Diesel engine manufacturers (original equipment)
- Engine spare parts dealers
- Engine repair and reconditioning workshops
- Ancillary supply against an engine maker's drawing and schedule
- Sale through spare parts wholesalers
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Medium duty lathe, 1,000 mm between centres, 230 mm centre height, 2 HP (× 3) | 1 | 1,80,000 | 1,80,000 |
| Medium duty lathe, 6 ft bed, 2 HP | 1 | 80,000 | 80,000 |
| Pillar drilling machine, 25 mm capacity, 2 HP | 1 | 16,000 | 16,000 |
| Automatic tapping machine, 2 HP | 1 | 25,000 | 25,000 |
| Double-ended grinder, 250 mm wheel, 2 HP | 1 | 6,000 | 6,000 |
| Testing and measuring equipment | 1 | 15,000 | 15,000 |
| Other tools and fixtures | 1 | 20,000 | 20,000 |
| Total | 3,42,000 |
Pre-filled from: DC-MSME project profile — Diesel Engine Cylinder Block. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Grey cast iron Grade 20 cylinder block castings — 17 tonnes a month at ₹42,000 a tonne = ₹7,14,000; bought from foundries
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 3.42 |
| Contingency | 0.17 |
| Total fixed capital | 3.59 |
| Working capital margin | 0.00 |
| Total project cost | 3.59 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.36 | 10.0 |
| Subsidy | 0.90 | 25.0 |
| Term loan from bank | 2.33 | 65.0 |
| Total | 3.59 | 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 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 |
| Insurance | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 |
| Total cost of operations | 2.97 | 2.97 | 2.97 | 2.97 | 2.97 | 2.97 | 2.97 |
| Operating profit (EBITDA) | -2.97 | -2.97 | -2.97 | -2.97 | -2.97 | -2.97 | -2.97 |
| Depreciation | 0.54 | 0.46 | 0.39 | 0.33 | 0.28 | 0.24 | 0.20 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.25 | 0.22 | 0.18 | 0.14 | 0.10 | 0.06 | 0.02 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -3.76 | -3.65 | -3.54 | -3.44 | -3.35 | -3.27 | -3.19 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -3.76 | -3.65 | -3.54 | -3.44 | -3.35 | -3.27 | -3.19 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -3.76 | -3.65 | -3.54 | -3.44 | -3.35 | -3.27 | -3.19 |
| Depreciation | 0.54 | 0.46 | 0.39 | 0.33 | 0.28 | 0.24 | 0.20 |
| Cash accruals (PAT + depreciation) | -3.22 | -3.19 | -3.15 | -3.11 | -3.07 | -3.03 | -2.99 |
| Term loan repaid | 0.18 | 0.36 | 0.36 | 0.36 | 0.36 | 0.36 | 0.36 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -3.40 | -3.55 | -3.51 | -3.47 | -3.43 | -3.39 | -3.35 |
| Cash and bank | -3.40 | -6.95 | -10.46 | -13.93 | -17.36 | -20.75 | -24.10 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 1.26 | 1.26 | 1.26 | 1.26 | 1.26 | 1.26 | 1.26 |
| Reserves and surplus | -3.76 | -7.41 | -10.95 | -14.39 | -17.74 | -21.01 | -24.20 |
| Term loan outstanding | 2.15 | 1.80 | 1.44 | 1.08 | 0.72 | 0.36 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | -0.35 | -4.36 | -8.25 | -12.05 | -15.76 | -19.39 | -22.94 |
| Net fixed assets | 3.05 | 2.59 | 2.21 | 1.87 | 1.59 | 1.35 | 1.15 |
| 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 | -3.40 | -6.95 | -10.46 | -13.93 | -17.36 | -20.75 | -24.10 |
| Total assets | -0.35 | -4.36 | -8.25 | -12.05 | -15.76 | -19.39 | -22.94 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -6.87 | -5.14 | -5.51 | -5.95 | -6.46 | -7.07 | -7.81 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -6.40 |
|---|---|
| Lowest DSCR | -7.81 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 0.54 | 0.46 | 0.39 | 0.33 | 0.28 | 0.24 | 0.20 |
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 | 2.33 | 0.25 | 0.18 | 2.15 |
| 2 | 2.15 | 0.22 | 0.36 | 1.80 |
| 3 | 1.80 | 0.18 | 0.36 | 1.44 |
| 4 | 1.44 | 0.14 | 0.36 | 1.08 |
| 5 | 1.08 | 0.10 | 0.36 | 0.72 |
| 6 | 0.72 | 0.06 | 0.36 | 0.36 |
| 7 | 0.36 | 0.02 | 0.36 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- Factory licence where the worker and power limits apply
- Trade licence from the local body
18 Government schemes that may apply
- Prime Minister's Employment Generation Programme (PMEGP)
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
19 Sources
- DC-MSME project profile — Diesel Engine Cylinder Block — https://www.dcmsme.gov.in/old/reports/METProducts/DieselEngineCylinderBlock.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.