VI-RB-2310 · EPC contractor · Completed · defect liability
Railway Construction Organisation, Central ZoneRailwaysDaund–Manmad sectionPM Sanjay Kadam · Finance Meera Kulkarni
Contract 1 Oct 2023 – 20 Dec 2025 · 30 days from submission of each bill · retention 5%
Profitable on paper, but this project has consumed ₹2.07 Cr of cash: ₹13.59 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 ₹11.14 Cr + remaining work ₹0 × planned 15% margin
₹13.7 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: ₹30.5 L to date + ₹26.0 L forecast. Profit on this lens: ₹10.58 Cr (14.2%). 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 | ₹7.5 L | 14.38% | ₹13.4 L | 14.06% |
| +60 days | ₹10.5 L | 14.34% | ₹26.8 L | 13.88% |
| +90 days | ₹10.5 L | 14.34% | ₹40.2 L | 13.70% |
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 ₹13.59 Cr, out ₹38.2 L.
1 open — what stands between work done and cash.
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-14Settled bills (history roll-up) | Collected | ₹63.90 Cr | — | ₹60.70 Cr by 27 Feb |
| Final billFinal bill incl. approved variations | Overdue | ₹10.40 Cr | ₹9.88 Cr | 25 Nov est. |
| RetentionReleased after the 12-month defect liability period (ends 20 Dec 2026) and a no-claim certificate | Retention | ₹3.71 Cr | ₹3.71 Cr | 26 Feb est. |
3 of 4 complete
Girder launching over track
14 Jul · 14d late
Done
Opened to traffic
20 Dec · 20d late
Done
Final bill & variation closure
30 Jun · 61d late
Done
Defect liability period ends
plan 20 Dec
Upcoming
₹38.2 L due to 31 Mar 2027 (FY end) on this project