VI-HB-2501 · EPC contractor · Executing
State Health Infrastructure Development CorporationState PSUNanded, MaharashtraPM Farhan Sheikh · Finance Kiran Joshi
Contract 15 Jan 2025 – 30 Jun 2027 · 45 days from submission of each RA bill · retention 5%
Profitable on paper, but this project has consumed ₹6.60 Cr of cash: ₹18.44 Cr of its earnings are still in unbilled work, bills and retention.
Expected profit at completion, what borrowing costs it, and how that changes if payments slip. Realised, forecast and illustrative amounts are kept apart.
Profit bridge — financing lens
= gross profit to date ₹9.19 Cr + remaining work ₹51.42 Cr × planned 12% margin
₹1.2 L of it because collections arrive after their due dates
Opportunity lens Alternative lens
Return forgone at 12% on amounts collected after their due dates: ₹3.8 L to date + ₹21.2 L forecast. Profit on this lens: ₹15.11 Cr (11.8%). It replaces — never adds to — the borrowing view.
The baseline margin already includes direct costs (materials, subcontract, site payroll, equipment). It excludes financing, head-office overheads and company term-loan interest, so the deductions above are not double counted. Retention is timing, not cost.
Profit after financing if collections slip further
| Further delay | Borrowing interest | Margin after | Opportunity cost | Margin after |
|---|---|---|---|---|
| +30 days | ₹2.7 L | 11.90% | ₹17.9 L | 11.66% |
| +60 days | ₹5.5 L | 11.88% | ₹35.9 L | 11.52% |
| +90 days | ₹8.3 L | 11.86% | ₹53.8 L | 11.38% |
Borrowing attributable to this project
No contractual or verified legal basis for late-payment interest is recorded for this contract, so none is assumed.
Illustrative losses — editable assumptions Illustrative
Expected collections vs this project's payments, to 31 Mar 2027 (FY end) — in ₹17.82 Cr, out ₹12.22 Cr.
4 open — what stands between work done and cash.
Medical gas layout approval from client's consultant
Submitted 12 Sep; procurement cannot start until approved.
Owner Farhan Sheikh · since 12 Sep (19 days)
Every bill for this contract — contractual due dates and our estimated collection dates side by side.
| Bill | Stage | Work value | Outstanding | Collection |
|---|---|---|---|---|
| RA-01 to RA-08Settled bills (history roll-up) | Collected | ₹61.20 Cr | — | ₹58.14 Cr by 30 Jul |
| RA-09Running account bill 9 — structure & MEP first fix (undisputed portion) | Overdue | ₹6.80 Cr | ₹6.46 Cr | 14 Oct est. |
| RA-10Aug–Sep work — certified, invoice not yet raised | Eligible to bill | ₹5.15 Cr | ₹5.15 Cr | 20 Dec est. |
| RA-09 (VO-06)Rock excavation beyond tender depth — withheld under dispute | Disputed | ₹3.42 Cr | ₹3.25 Cr | not forecast |
| Oct 2026 workPlanned bill for Oct 2026 work | Planned | ₹3.40 Cr | — | 12 Feb est. |
| Nov 2026 workPlanned bill for Nov 2026 work | Planned | ₹3.40 Cr | — | 14 Mar est. |
| Dec 2026 workPlanned bill for Dec 2026 work | Planned | ₹3.40 Cr | — | 14 Apr est. |
| Jan 2027 workPlanned bill for Jan 2027 work | Planned | ₹3.40 Cr | — | 15 May est. |
| Feb 2027 workPlanned bill for Feb 2027 work | Planned | ₹3.40 Cr | — | 12 Jun est. |
| Mar 2027 workPlanned bill for Mar 2027 work | Planned | ₹3.40 Cr | — | 13 Jul est. |
| RetentionReleased after the 12-month defect liability period | Retention | ₹3.57 Cr | ₹3.57 Cr | 15 Sep est. |
1 of 4 complete
Structure complete (G+6)
18 Jun · 18d late
Done
MEP first fix
plan 31 Oct
In progress
Medical gas pipeline
plan 31 Dec
Upcoming
Design approval pending
Finishes & equipment installation
plan 30 Apr
Upcoming
₹12.22 Cr due to 31 Mar 2027 (FY end) on this project