Profitability Statement

Year

2880
50%
1440
17.28

2880
60%
1728
20.736

2880
70%
2016
24.192

2880
70%
2016
24.192

2880
70%
2016
24.192

2880
70%
2016
24.192

2880
70%
2016
24.192

11.232
0.691
0.900
0.050
12.873

13.478
0.829
1.000
0.053
15.361

15.725
0.968
1.200
0.056
17.949

15.725
0.968
1.260
0.060
18.012

15.725
0.968
1.323
0.063
18.079

15.725
0.968
1.389
0.067
18.149

15.725
0.968
1.459
0.071
18.222

Administration Exp.
Selling Exp.
Total expenses

0.1
1.728
1.828

0.1
2.0736
2.1736

0.1
2.4192
2.5192

0.1
2.4192
2.5192

0.1
2.4192
2.5192

0.1
2.4192
2.5192

0.1
2.4192
2.5192

Gross profit

2.579

3.202

3.724

3.661

3.594

3.524

3.451

Long term loans

Short term loans

0.896
0.376

0.896
0.451

0.812
0.526

0.700
0.527

0.588
0.527

0.476
0.527

0.364
0.528

EBDTA

1.307

1.855

2.386

2.434

2.479

2.521

2.559

Depreciation
Amortization

0.700
0.020

0.700
0.020

0.700
0.020

0.700
0.020

0.700
0.020

0.700
0.020

0.700
0.020

EBT

0.587

1.135

1.666

1.714

1.759

1.801

1.839

Tax @ 45%

0.000

0.000

0.000

0.249

0.569

0.642

0.694

PAT

0.587

1.135

1.666

1.465

1.190

1.159

1.145

Dividend

0.000

0.480

0.480

0.560

0.560

0.640

0.640

Retained Profits

0.587

0.655

1.186

0.905

0.630

0.519

0.505

Sales Realization
Installed Capacity
Utilization
Productivity
Sales Realization

Cost of production
Raw materials
Power
Wages & salaries
Factory Overheads
Tot. Cost of Production

Admin. & Selling Exp.

EBDITA

Interest on loans

Indirect Expenses

Net Cash Accruel

1.307

1.375

1.906

1.625

1.350

1.239

1.225

PBT with interest

added back

1.859

2.482

3.004

2.941

2.874

2.804

2.731

Reserves & surplus

0.587

1.241

2.427

3.332

3.962

4.481

4.986

10 Units

Basic Assumptions

2880
70%
2016
24.192

2880
70%
2016
24.192

2880 tpa
70%
2016 tpa
24.192 in millions

Price/kg

15.725
0.968
1.532
0.075
18.299

15.725
0.968
1.608
0.080
18.380

15.725
0.968
1.689
0.084
18.465

RM
Power
Year(1,2,3)
1st year

0.1
2.4192
2.5192

0.1
2.4192
2.5192

0.1
2.4192
2.5192

3.374

3.293

3.207

0.252
0.528

0.140
0.529

0.028
0.529

2.593

2.624

2.650

0.700
0.020

0.700
0.020

0.700
0.020

1.873

1.904

1.930

0.733

0.762

0.784

1.140

1.142

1.146

0.720

0.720

0.800

0.420

0.422

0.346

12.00

65% of sales
4% realization
W&S(0.9,1,1.2)
50000

100000 per annum

10% of sales

Sales - Cost of prod. - Admin. & selling exp.

Refer corresponding
worksheets
Gross profit - int. on loans

EBDTA - Indirect Exp.

Refer Tax Calculation worksheet

12% of Share capital

Share capital
4.00

1.140

1.142

1.066

Retained profits + Depr. + Amortization

2.654

2.573

2.487

EBT+Interest on LTL and STL

Used in the projected cash flow statement

5.406

5.828

6.174

Accumulate PAT of each year

Used in Projected balance sheet

Then on
Then on

5%
6%

n. & selling exp.

2% increase then on

flow statement

Interest on long term loans

Year
1
2
3
4
5
6
7
8
9
10

Loan amount
Interest
Total term
Beginning 1st half 2nd half 1st half 2nd half loan interest
6.400
6.400
6.400
0.448
0.448
0.896
6.400
6.400
6.400
0.448
0.448
0.896
6.400
6.000
5.600
0.420
0.392
0.812
5.600
5.200
4.800
0.364
0.336
0.700
4.800
4.400
4.000
0.308
0.280
0.588
4.000
3.600
3.200
0.252
0.224
0.476
3.200
2.800
2.400
0.196
0.168
0.364
2.400
2.000
1.600
0.140
0.112
0.252
1.600
1.200
0.800
0.084
0.056
0.140
0.800
0.400
0.000
0.028
0.000
0.028

Decrease
in LTL
0.000
0.400
0.800
0.800
0.800
0.800
0.800
0.800
0.800
0.400
All units in Millions

Refer to the case

Term loan
6.4 in millions
No. of installments
16
Interest on terms
14%
No. of terms per year
2
Payment falling due at the end of second year

Reduction per term

To be used in Proj. Cash flow

0.4

Proposed means of finance

Basic assumptions

Depreciation Schedules

Asset

Basic cost

Land
Building
P&M
Misc. FA

0.39
1.50
6.20
0.40
8.49

Asset valuation for depreciation purpose

Percentage
Pre-operative cost
Contingency margin
Total
Shared
Total
Shared
0.05
0.05
0.03
0.18
0.20
0.13
1.15
0.75
0.73
0.84
0.55
0.05
0.05
0.04
1.15
0.75
Refer "COST OF PROJECT" in the case

Asset

Year
Worth
Building
Deduction
P&M and Worth
Misc FA Deduction

1
1.836
0.184
8.077
2.690

2
1.652
0.165
5.387
1.794

3
1.487
0.149
3.593
1.197

4
1.338
0.134
2.397
0.798

5
1.204
0.120
1.599
0.532

Total deduction

2.873

1.959

1.345

0.932

0.653

Depriciation amount
Amortization amount

0.700
0.02

0.700
0.02

0.700
0.02

0.700
0.02

0.700
0.02

For company law purpose

Amount to
Depr. Rate
be paid

Total
0.477
1.836
7.588
0.490

3.34%
8.09%
5.15%

ase

0.061
0.614
0.025
0.700

Basic assumptions

6
1.084
0.108
1.066
0.355

7
0.976
0.098
0.711
0.237

8
0.878
0.088
0.474
0.158

9
0.790
0.079
0.316
0.105

10
0.711
0.071
0.211
0.070

0.463

0.334

0.246

0.184

0.141

0.700
0.02

0.700
0.02

0.700
0.02

0.700
0.02

0.700
0.02

Basic assumptions
Asset
Depr. Rate
Buliding
10.0%
P&M Misc. FA

Prelim. Exp.

33.3%

0.20 Should be distributed over 10 years

Working capital Calculation

Year

2880
50%
1440
17.28

2880
60%
1728
20.736

2880
70%
2016
24.192

2880
70%
2016
24.192

2880
70%
2016
24.192

2880
70%
2016
24.192

11.232
0.691
0.900
0.050

13.478
0.829
1.000
0.053

15.725
0.968
1.200
0.056

15.725
0.968
1.260
0.060

15.725
0.968
1.323
0.063

15.725
0.968
1.389
0.067

1.404
0.030
0.536
1.440
3.411

1.685
0.036
0.640
1.728
4.089

1.966
0.042
0.748
2.016
4.772

1.966
0.042
0.751
2.016
4.774

1.966
0.042
0.753
2.016
4.777

1.966
0.042
0.756
2.016
4.780

Sundry Creditors
Working capital
Working Cap. Margin
Bank Loan for working capital

0.468
2.943
0.853
2.090

0.562
3.527
1.022
2.505

0.655
4.116
1.193
2.923

0.655
4.119
1.194
2.926

0.655
4.122
1.194
2.928

0.655
4.125
1.195
2.930

Interest on STL

0.376

0.451

0.526

0.527

0.527

0.527

Increase in bank borrowings

Approximation

2.090

0.415

0.418

0.002

0.002

0.002

Increase in workin capital

2.943

0.585

0.589

0.003

0.003

0.003

Sales Realization
Installed Capacity
Utilization
Productivity
Sales Realization

Cost of production
Raw materials
Power
Wages & salaries
Factory Overheads

Current Assets
Raw materials
WIP
Finished Goods
Book debts
Tot. Current Assets
(or) working capital

Current Liabilities

10 Units

Basic Assumptions

2880
70%
2016
24.192

2880
70%
2016
24.192

2880
70%
2016
24.192

2880 tpa
70%
2016 tpa
24.192 in millions

Price/kg

15.725
0.968
1.459
0.071

15.725
0.968
1.532
0.075

15.725
0.968
1.608
0.080

15.725
0.968
1.689
0.084

RM
Power
Year(1,2,3)
1st year

65%
4%
W&S(0.9,1,1.2)
50000

1.966
0.042
0.759
2.016
4.783

1.966
0.043
0.762
2.016
4.787

1.966
0.043
0.766
2.016
4.790

1.966
0.043
0.769
2.016
4.794

RM
WIP
FG
Book debts

1.50
0.03
0.50
1.00

0.655
4.128
1.196
2.932

0.655
4.131
1.197
2.935

0.655
4.135
1.198
2.937

0.655
4.139
1.198
2.940

Supplier

0.50

0.528

0.528

0.529

0.529

Interest rate

0.002

0.002

0.003

0.003

12.00

25% of Working capital (or) Tot. Current Ass

WC-WC margin
18%

To be used in projected cash flow statement

0.003

0.003

0.003

0.004

of sales
realization
Then on
Then on

Months
Months
Months
Month

5%
6%

RM + Half of other directs costs

Taken from sales realization

Months of credit

orking capital (or) Tot. Current Assets

projected cash flow statement

Tax Calculation
Year

10

EBT

0.587 1.135 1.666 1.714 1.759 1.801 1.839 1.873 1.904 1.930

Depr. By SLM
Add Depr.

0.700 0.700 0.700 0.700 0.700 0.700 0.700 0.700 0.700 0.700

Total Earnings

1.287 1.835 2.366 2.414 2.459 2.501 2.539 2.573 2.604 2.630

Depr. By WDV
Subtract them

2.873 1.959 1.345 0.932 0.653 0.463 0.334 0.246 0.184 0.141
-1.587 -0.125 1.021 1.482 1.806 2.037 2.205 2.328 2.419 2.489

Negative accumulation

-1.587 -1.711

Adding accumulation

Gross total Income

-0.691 0.792 1.806 2.037 2.205 2.328 2.419 2.489

0

0 0.792 1.806 2.037 2.205 2.328 2.419 2.489

Deducting 30%

0.000 0.000 0.000 0.238 0.542 0.611 0.661 0.698 0.726 0.747

Taxable income

0.000 0.000 0.000 0.554 1.264 1.426 1.543 1.629 1.694 1.742

Tax @ 45%

0.000 0.000 0.000 0.249 0.569 0.642 0.694 0.733 0.762 0.784

Refer Depreciation worksheet

Accumulate the negatives

Subtract from the profitable years
Consider only the profitable years
30% of GTI will be allowed for deduction

45% applicable tax rate

Projected cash flow statement

Year

Construction
period

1.859
0.7
0.02

2.482
0.7
0.02

3.004
0.7
0.02

2.941
0.7
0.02

2.874
0.7
0.02

2.090

0.415

0.418

0.002

0.002

4.669

3.617

4.143

3.663

3.596

2.943

0.585

0.589

0.003

0.003

10.590

0
0.896
0.376
0.000
0.000
4.215

0.4
0.896
0.451
0.000
0.480
2.812

0.8
0.812
0.526
0.000
0.480
3.207

0.8
0.7
0.527
0.249
0.560
2.839

0.8
0.588
0.527
0.569
0.560
3.047

0.850

1.304

2.109

3.044

3.868

Addition

0.850

0.454

0.805

0.935

0.824

0.549

Closing balance

0.850

1.304

2.109

3.044

3.868

4.418

Sources of fund
Share capital
PBT with interest added back
Depreciation
Amortization
Term loans
Increase in bank borrowing for
working capital
State govt. special incentive
loans
Total

4.000

6.4

1.04
11.440

Application of funds
Capital expenditure
Increase in working capital
Preliminary expenses
Decrease in LTL
Interest on term loans
Interest on WC borrowings
Taxation
Dividend to be paid
Total

10.39
0.2

Cash on hand and at bank

Opening Balance

10
Refer means of finance from the case for
values during the construction period

2.804
0.7
0.02

2.731
0.7
0.02

2.654
0.7
0.02

2.573
0.7
0.02

2.487
0.7
0.02

0.002

0.002

0.002

0.003

0.003

3.527

3.453

3.376

3.295

3.210

Refer profitability statement

Refer depreciation worksheet

Refer working capital calculation

Refer cost of project from the case for values

in the construction period
0.003

0.003

0.003

0.003

0.004

0.8
0.476
0.527
0.642
0.640
3.088

0.8
0.364
0.528
0.694
0.640
3.029

0.8
0.252
0.528
0.733
0.720
3.037

0.8
0.14
0.529
0.762
0.720
2.954

0.4
0.028
0.529
0.784
0.800
2.545

4.418

4.856

5.280

5.619

5.960

0.438

0.424

0.339

0.341

0.665

4.856

5.280

5.619

5.960

6.625

Refer interest on term loans

Refer profitablity
statement

nce from the case for

onstruction period

apital calculation

om the case for values

uction period

Projected balance sheet

Year

Construction
period

4.000

4.000
0.587

4.000
1.241

4.000
2.427

4.000
3.332

6.400

6.400
2.090

6.000
2.505

5.200
2.923

4.400
2.926

1.04

1.04

1.04

1.04

1.04

0.468

0.562

0.655

0.655

11.440

14.585

15.348

16.246

16.353

10.39
0

9.69
0

8.99
0

8.29
0

7.59
0

0.85

1.44
1.404
0.030
0.536
1.304

1.728
1.685
0.036
0.640
2.109

2.016
1.966
0.042
0.748
3.044

2.016
1.966
0.042
0.751
3.868

0.2

0.180

0.160

0.140

0.120

11.440

14.585

15.348

16.246

16.353

Liabilities
Term liabilities
Share capital
Reserves & Surplus
Secured loans
(1) Term loans
(2) Working capital advance
Unsecured loans
(1) State govt. special incentive loans
Current liabilities
Sundry creditors
Total

Assets
Fixed assets & Investments
Fixed assets
Investments
Current assets, loans & advances
Sundry debtors
Raw materials
WIP
Finished goods
Closing balance
Misc. Expenditure and losses
Preliminary expenses
Total

alance sheet
5

10

Refer means of finance from the case for

values during the construction period
4.000
3.962

4.000
4.481

4.000
4.986

4.000
5.406

4.000
5.828

4.000
6.174

3.600
2.928

2.800
2.930

2.000
2.932

1.200
2.935

0.400
2.937

0.000
2.940

1.04

1.04

1.04

1.04

1.04

1.04

0.655

0.655

0.655

0.655

0.655

0.655

16.185

15.906

15.613

15.236

14.860

14.809

Refer profitability statement

Refer depreciation worksheet
Refer working capital calculation

Refer working capital calculation

Refer cost of project from the case for value

in the construction period
6.89
0

6.19
0

5.49
0

4.79
0

4.09
0

3.39
0

2.016
1.966
0.042
0.753
4.418

2.016
1.966
0.042
0.756
4.856

2.016
1.966
0.042
0.759
5.280

2.016
1.966
0.043
0.762
5.619

2.016
1.966
0.043
0.766
5.960

2.016
1.966
0.043
0.769
6.625

0.100

0.080

0.060

0.040

0.020

0.000

16.185

15.906

15.613

15.236

14.860

14.809

0.7 depreciation

Refer working capital calculation

Refer projected cash flow
0.02 Should be deducted every year

eans of finance from the case for

during the construction period

tability statement
preciation worksheet

r working capital calculation

r working capital calculation

of project from the case for values

n the construction period
depreciation

Refer working capital calculation

efer projected cash flow

Should be deducted every year