Detailed Project Report
Soil and Water Testing Laboratory
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹4.14 L
- Term loan from bank
- ₹2.69 L
- Promoter’s contribution
- ₹0.41 L
- Subsidy
- ₹1.03 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-3.64 L
- Average DSCR
- -5.58
- 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
A small rural lab that tests farmers' soil and irrigation water for a fee and advises them on fertiliser use and land reclamation.
| Main product or service | Soil and Water Testing Laboratory |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Farmers in the taluka, especially growers of commercial crops and vegetables
- Farmers with saline or alkaline land
- Farmers needing input testing or bio-fertilisers
- Samples received at the lab
- Field visits, training and demonstrations in villages
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Laboratory equipment — pH meter, EC meter, photometer, colorimeter, glassware and lab furniture | 1 | 2,32,000 | 2,32,000 |
| Wooden drawer cabinets for keeping samples (× 2 sets) | 1 | 20,000 | 20,000 |
| Office equipment — furniture, motorcycle, computer, telephone, audio-visual aids, contingencies | 1 | 1,17,000 | 1,17,000 |
| Water and electricity supply to the lab | 1 | 25,000 | 25,000 |
| Total | 3,94,000 |
Pre-filled from: MANAGE Agri-Clinics & Agri-Business Centres model project — Soil, Water Quality and Input Testing Laboratory Services Centre. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Laboratory chemicals and reagents — opening stock of ₹20,000 in the model
- Soil and irrigation water samples — brought by farmers or collected on field visits
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 3.94 |
| Contingency | 0.20 |
| Total fixed capital | 4.14 |
| Working capital margin | 0.00 |
| Total project cost | 4.14 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.41 | 10.0 |
| Subsidy | 1.03 | 25.0 |
| Term loan from bank | 2.69 | 65.0 |
| Total | 4.14 | 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 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 |
| Insurance | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 |
| Total cost of operations | 2.98 | 2.98 | 2.98 | 2.98 | 2.98 | 2.98 | 2.98 |
| Operating profit (EBITDA) | -2.98 | -2.98 | -2.98 | -2.98 | -2.98 | -2.98 | -2.98 |
| Depreciation | 0.62 | 0.53 | 0.45 | 0.38 | 0.32 | 0.28 | 0.23 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.29 | 0.25 | 0.21 | 0.16 | 0.12 | 0.07 | 0.02 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -3.90 | -3.76 | -3.64 | -3.53 | -3.42 | -3.33 | -3.24 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -3.90 | -3.76 | -3.64 | -3.53 | -3.42 | -3.33 | -3.24 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -3.90 | -3.76 | -3.64 | -3.53 | -3.42 | -3.33 | -3.24 |
| Depreciation | 0.62 | 0.53 | 0.45 | 0.38 | 0.32 | 0.28 | 0.23 |
| Cash accruals (PAT + depreciation) | -3.27 | -3.24 | -3.19 | -3.14 | -3.10 | -3.05 | -3.01 |
| Term loan repaid | 0.21 | 0.41 | 0.41 | 0.41 | 0.41 | 0.41 | 0.41 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -3.48 | -3.65 | -3.60 | -3.56 | -3.51 | -3.47 | -3.42 |
| Cash and bank | -3.48 | -7.13 | -10.73 | -14.29 | -17.81 | -21.27 | -24.69 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 1.45 | 1.45 | 1.45 | 1.45 | 1.45 | 1.45 | 1.45 |
| Reserves and surplus | -3.90 | -7.66 | -11.30 | -14.82 | -18.25 | -21.57 | -24.82 |
| Term loan outstanding | 2.48 | 2.07 | 1.65 | 1.24 | 0.83 | 0.41 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 0.04 | -4.14 | -8.19 | -12.13 | -15.97 | -19.71 | -23.37 |
| Net fixed assets | 3.52 | 2.99 | 2.54 | 2.16 | 1.84 | 1.56 | 1.33 |
| 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 | -3.48 | -7.13 | -10.73 | -14.29 | -17.81 | -21.27 | -24.69 |
| Total assets | 0.04 | -4.14 | -8.19 | -12.13 | -15.97 | -19.71 | -23.37 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -5.99 | -4.48 | -4.81 | -5.19 | -5.64 | -6.17 | -6.81 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -5.58 |
|---|---|
| Lowest DSCR | -6.81 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 0.62 | 0.53 | 0.45 | 0.38 | 0.32 | 0.28 | 0.23 |
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 | 2.69 | 0.29 | 0.21 | 2.48 |
| 2 | 2.48 | 0.25 | 0.41 | 2.07 |
| 3 | 2.07 | 0.21 | 0.41 | 1.65 |
| 4 | 1.65 | 0.16 | 0.41 | 1.24 |
| 5 | 1.24 | 0.12 | 0.41 | 0.83 |
| 6 | 0.83 | 0.07 | 0.41 | 0.41 |
| 7 | 0.41 | 0.02 | 0.41 | 0.00 |
17 Licences and registrations
- Udyam registration
- Shop and establishment or trade licence as the local body requires
- Recognition of the lab by the State Agriculture Department if you want to issue soil health cards
- Safe storage and disposal of lab chemicals as per local pollution rules
18 Government schemes that may apply
- Prime Minister's Employment Generation Programme (PMEGP)
- Pradhan Mantri MUDRA Yojana (PMMY) – Shishu, Kishor, Tarun, Tarun Plus
19 Sources
- MANAGE Agri-Clinics & Agri-Business Centres model project — Soil, Water Quality and Input Testing Laboratory Services Centre — https://www.agriclinics.net/SoilWater.htm
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.