Detailed Project Report
V-Belts and Fan Belts
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹6.93 L
- Term loan from bank
- ₹4.50 L
- Promoter’s contribution
- ₹0.69 L
- Subsidy
- ₹1.73 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-4.15 L
- Average DSCR
- -3.41
- 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
Make rubber V-belts and fan belts for vehicles, machines and household equipment.
| Main product or service | V-Belts and Fan Belts |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Automobile spare-parts dealers
- Industries with machine drives
- Makers of domestic and commercial equipment
- Spare-parts wholesalers
- Direct supply to factories
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Rubber mixing mill 12 × 30 inch with 25 HP motor and reduction gear | 1 | 0 | 0 |
| Vulcanising chamber | 1 | 0 | 0 |
| Hydraulic press with pump and motor | 1 | 0 | 0 |
| Spreading machine, 28 inch width | 1 | 0 | 0 |
| Churning mill | 1 | 0 | 0 |
| Boiler, 100 kg evaporation | 1 | 0 | 0 |
| Belt-building units (× 1 set) | 1 | 0 | 0 |
| Testing equipment, moulds and fixtures (× 1 lot) | 1 | 0 | 0 |
| All equipment above with electrification, installation, office equipment and pre-operative expenses (× total) | 1 | 6,60,000 | 6,60,000 |
| Total | 6,60,000 |
Pre-filled from: KVIC Project Profile — V-Belts and Fan Belts (PMEGP). Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Rubber, fabric and compounding chemicals — raw material ₹20.40 L a year in the profile (items not listed separately)
- Labels and packing material — ₹1.25 L a year
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 6.60 |
| Contingency | 0.33 |
| Total fixed capital | 6.93 |
| Working capital margin | 0.00 |
| Total project cost | 6.93 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.69 | 10.0 |
| Subsidy | 1.73 | 25.0 |
| Term loan from bank | 4.50 | 65.0 |
| Total | 6.93 | 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 | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 |
| Insurance | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 |
| Total cost of operations | 3.05 | 3.05 | 3.05 | 3.05 | 3.05 | 3.05 | 3.05 |
| Operating profit (EBITDA) | -3.05 | -3.05 | -3.05 | -3.05 | -3.05 | -3.05 | -3.05 |
| Depreciation | 1.04 | 0.88 | 0.75 | 0.64 | 0.54 | 0.46 | 0.39 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.49 | 0.42 | 0.35 | 0.27 | 0.19 | 0.12 | 0.04 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -4.58 | -4.36 | -4.15 | -3.96 | -3.79 | -3.63 | -3.49 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -4.58 | -4.36 | -4.15 | -3.96 | -3.79 | -3.63 | -3.49 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -4.58 | -4.36 | -4.15 | -3.96 | -3.79 | -3.63 | -3.49 |
| Depreciation | 1.04 | 0.88 | 0.75 | 0.64 | 0.54 | 0.46 | 0.39 |
| Cash accruals (PAT + depreciation) | -3.54 | -3.48 | -3.40 | -3.32 | -3.25 | -3.17 | -3.09 |
| Term loan repaid | 0.35 | 0.69 | 0.69 | 0.69 | 0.69 | 0.69 | 0.69 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -3.89 | -4.17 | -4.09 | -4.02 | -3.94 | -3.86 | -3.79 |
| Cash and bank | -3.89 | -8.06 | -12.15 | -16.16 | -20.10 | -23.97 | -27.76 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 2.43 | 2.43 | 2.43 | 2.43 | 2.43 | 2.43 | 2.43 |
| Reserves and surplus | -4.58 | -8.94 | -13.09 | -17.05 | -20.84 | -24.47 | -27.96 |
| Term loan outstanding | 4.16 | 3.47 | 2.77 | 2.08 | 1.39 | 0.69 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 2.00 | -3.05 | -7.89 | -12.55 | -17.03 | -21.35 | -25.53 |
| Net fixed assets | 5.89 | 5.01 | 4.26 | 3.62 | 3.07 | 2.61 | 2.22 |
| 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 | -3.89 | -8.06 | -12.15 | -16.16 | -20.10 | -23.97 | -27.76 |
| Total assets | 2.00 | -3.05 | -7.89 | -12.55 | -17.03 | -21.35 | -25.53 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -3.66 | -2.74 | -2.94 | -3.17 | -3.44 | -3.77 | -4.16 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -3.41 |
|---|---|
| Lowest DSCR | -4.16 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 1.04 | 0.88 | 0.75 | 0.64 | 0.54 | 0.46 | 0.39 |
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 | 4.50 | 0.49 | 0.35 | 4.16 |
| 2 | 4.16 | 0.42 | 0.69 | 3.47 |
| 3 | 3.47 | 0.35 | 0.69 | 2.77 |
| 4 | 2.77 | 0.27 | 0.69 | 2.08 |
| 5 | 2.08 | 0.19 | 0.69 | 1.39 |
| 6 | 1.39 | 0.12 | 0.69 | 0.69 |
| 7 | 0.69 | 0.04 | 0.69 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST
- State Pollution Control Board consent
- Boiler registration with the state boiler inspectorate (the plan has a boiler)
- Factory licence if you cross the Factories Act limits
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)
19 Sources
- KVIC Project Profile — V-Belts and Fan Belts (PMEGP) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/V-BELTS_ANDFAN_BELTS_%28_RURAL_ENGG._AND_BIO-TECH_INDUSTRY_%29.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.