Tata Steel Limited-FPO

Open Source Financial Model

Contact
Anil Bains
anil@edupristine.com
+91 9619673853
Anirudh Gandhi
anirudh@edupristine.com
+91 9870083227
Paramdeep Singh
paramdeep@edupristine.com
+91 9892980608
Pawan Prabhat
pawna@eneev.com
+91 9867625422
Special Thanks to:
Kushal Bhagat
kushal.bhagat@gmail.com
+91 9717483505

Neev Knowledge Management - Pristine

www.edupristine.com
info@edupristine.com

+91 22 3215 6191

+91 8080 00 55 33
Pristine is India's largest authorized training provider for CFA , FRM , PRM and Financial Modeling. It has
conducted more than 300,000+ man-hours of finance trainings for individuals and corporates in all the major Indian
cities and outside India.

Model

anagement - Pristine

odeling. It has
n all the major Indian

Tata Steel, the seventh-largest player in the global steel industry,is attempting to take advantage of strong domestic
demand from user industries by expanding its capacities here.
In India, the total steel output grew 7.4% year-on-year during the first 11 months of the calendar year 2010,which is
the fastest in BRIC countries, according to the global industry body. This pace of growth is expected to continue over
the next few years.
To part finance the expansion plan, Tata Steel is coming out with its FPO aggregating nearly 3,385 crore, which has
generated enormous interest in the investor community (both retail and institutional). Many potential investors want a
financial model in MS Excel which can help them in a thorough analysis of the company. Creating such models have
always been a time-taking and daunting exercise.
Pristine has created an integrated valuation model based on publically available information. It is available as an opensource model for any user. Kindly note that this model is meant for information purpose only.
The complete structure of the model and formulas, linkages etc. have been kept open to allow for any modification on
the part of the user.
Pristine conducts extensive trainings for financial modeling in MS Excel. These trainings are targeted towards
investors/ professionals who are looking for a career in finance (Investment Banking, PE, Broking, Equity Research,
etc.). At the completion of the trainings, the participants should be able to create models like these.

Neev Knowledge Management - Pristine

www.edupristine.com
info@edupristine.com
Pristine is India's largest authorized training provider for CFA, FRM, PRM and Financial Modeling. It has
conducted more than 300,000+ man-hours of finance trainings for individuals and corporates in all the major Indian
cities and outside India.

ge of strong domestic

ar year 2010,which is
pected to continue over

3,385 crore, which has

tential investors want a
ating such models have

t is available as an open-

w for any modification on

targeted towards
king, Equity Research,
hese.

anagement - Pristine

odeling. It has
n all the major Indian

INDEX
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

Summary Sheet
DuPont Analysis
Assumption Sheet
Profit & Loss Account
Balance Sheet
Cash Flow
Reserves & Surplus
Debt Schedule
Asset Schedule
Valuation

1,500,000
Year
Asset
Cash Flow From Operations
Cash Flow From Investing
Cash Flow From Financing
Net Income

FY 07A
166,307

INR Millions

1,000,000

FY 08A
200,838

FY 09A
962,294

FY 10A
994,587

FY 11E
FY 12E
972,890 1,014,890

(185,401) (832,957)
217,574
408,364
41,390
74,845

(36,174)
(41,123)
35,042

32,817 (117,567)
(89,073)
27,632
(20,147)
71,717

(69,242)
(30,323)
71,797

500,000

FY 06A

(500,000)

(1,000,000)

FY 07A

FY 08A

FY 09A

FY 10A

Tata Steel Limited

FY 13E
FY 14E
FY 15E
1,040,640 1,040,640 1,040,640
(52,929)
(19,423)
85,683

FY 10A

(7,909)
(19,423)
94,380

(37,335)
(19,423)
117,577

FY 11A

Year

TRUE
FALSE
TRUE
TRUE

TRUE

FY 12A

FY 13A

FY 14A

FY 15A

FY 15A

Assets
CFO
CFI
CFF
Net Income

Asset

FY 16A

Cash Flow From

Investing
Cash Flow From
Financing
Net Income
Cash Flow From
Operations

DuPont Analysis
Sales
1,050,259
Cost of Sales
440,163

Earnings
Available
68,625

Income Statement

Operating
Expense

divided by

477,361
Interest Expense
31,365

Sales
1,050,259

Tax Expense
30,304
Exceptional Items
-

Others
2,441
Sales
1,050,259

divided by
Current Assets
515,036
+
Net Fixed Assets
(PPE)

Total Assets
1,245,487

Balance Sheet

730,451
Total Liabilities
950,867
Current Liabilities
384,863

+
Long Term Debt
566,004

Stockholder
Equity (SE)
294,620

Analysis

Net Profit Margin

6.5%

Return on Total Assets

(ROA)
multiplied by
5.5%

Total Asset
Turnover
0.84
multiplied by

Return on
Common Equity
(ROE)
23.3%

Total Liab + SE =
Total Assets
1,245,487

divided by

Financial Leverage
multiplier
4.23

Common stock
equity
294,620

Assumptions

(Unless otherwise specified, all financials are in INR Million)

FY 06A

FY 07A

P&L Assumptions

Sales and Other Operating Income Growth Rate

Scroll Bar

23%

Excise Duty as % of Sales

CAGR

8%

Other Income Growth Rate

Scroll Bar

53%

Cost of Material as % of Sales

Scroll Bar

33%

Provisions for Employees as % of Revenue

CAGR

7%

Manufacturing, Selling and Other Expenses as % of Sales

CAGR

26%

Restructuring Cost as % of Sales

Scroll Bar

0%

Contribution for Sports Infrastructure as % of Sales

Scroll Bar

0%

Exchange Gain as % of Sales

Scroll Bar

0%

Acturial Gain as % of Sales

Scroll Bar

0%

Current Tax as % of Profit Before Tax

Scroll Bar

34%

Changes in Accounting Policies as % of Sales

Scroll Bar

0%

Prior Period Adjustments As % of Sales

Scroll Bar

0%

Tax Impact of Adjustments as % of Sales

Scroll Bar

0%

Minority Interest as % of Sales

CAGR

0%

Share of Profit of Associates as % of Sales

CAGR

0%

Balance Sheet

CWIP as % of Sales

Scroll Bar

12%

Inventory No. of days

Scroll Bar

132

Debtor No. of Days

CAGR

19

Loans and Advances as % of Sales

CAGR

7%

Minority Interest as % of Gross Block

CAGR

3%

Creditor No of days

Scroll Bar

160

Advances as % of Sales

CAGR

1%

Investments Growth Rate

Scroll Bar

374%

FY 08A

FY 09A

FY 10A

FY 11E

FY 12E

FY 13E

FY 14E

389%

12%

-31%

FY 03A
3%

FY 06E
6%

FY 08E
8%

FY 08E
8%

2%

2%

2%

FY 06A
3%

2%

2%

2%

122%

-44%

346%

FY 10A
10%

FY 10E
10%

FY 10E
10%

FY 10E
10%

45%

49%

42%

FY 41A
41%

FY 41E
41%

FY 41E
41%

FY 40E
40%

13%

12%

16%

FY 10A
12%

FY 15E
13%

FY 15E
13%

FY 15E
14%

29%

24%

32%

28%

28%

28%

29%

0%

0%

3%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

4%

0%

0%

0%

0%

0%

33%

18%

126%

3000%
30%

3000%
30%

3000%
30%

3000%
30%

-4%

-1%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%
0%

0%
0%

0%
0%

0%
0%

12
7%

6%

9%

12%

82

112

167

160

28

38

43

32

12%

9%

7%

9%

1%

1%

1%

1%

14
14%

16

16
16%

16
160

35

14
14%

16
160

34

16
160

35

35

35

37

37

9%

8%

8%

1%

1%

1%

38

39

20
93

119

181

200

0%

0%

1%

1%

-80%

90%

-15%

20%

20
200

38

20
200

0
0%

20

200
0

0%
20

20%

20

0
1%

20
20%

20
20%

FY 15E

FY 08E
8%

3%
FY 10E
10%
FY 40E
40%
FY 15E
13%

28%

0%

0%

0%

0%
3000%
30%

0%

0%

0%

0%
0%
0%

14
14%
16
160
35
35

8%

1%
20
200
0
1%
20
20%

Income Statement

(Unless otherwise specified, all financials are in INR Million)

FY 06A

FY 07A

Income
Sales and Other Operating Income
Less: Excise Duty
Net Income from Operations
Other Income
Total Income

222,682
19,500
203,182
1,402
204,584

274,421
22,249
252,172
2,146
254,317

Expenditure
Cost of Material
Accreation/(Reduction) in Stocks
Payment to and Provisions for Employees
Manufacturing, Selling and Other Expenses
Finance Charges
Depreciation
Total

81,776
67,107
(470)
17,267
56,376
551
8,604
149,434

97,541
91,769
(5,402)
20,380
72,454
1,877
10,110
191,187

55,150

63,130

16,200
1,450
290
17,939

21,455
(155)
174
21,474

Net Profit After Tax (Before Adjustments)

Adjustments
Changes in Accounting Policies
Prior Period Adjustments
Tax Impact of Adjustments
Total

37,211

41,656

(428)
144
(284)

(582)
196
(386)

Net Profit/(Loss) After Adjustments

36,927

41,270

191
322

672
792

37,057
37,057
19,861

41,390
41,390
33,349

56,918

74,739

Net Profit Before Tax & Exceptional Items

Exceptional Items
Restructuring Cost
Contribution for Sports Infrastructure
Exchange Gain
Acturial Gain
Total
Provision of Tax
Current Tax
Deferred Tax
Fringe Benefit Tax
Total

Less: Minority Interest

Add: Share of Profit of Associates
Profit / (Loss) as Restated
Balance Brought Forward from Previous Year
Balance Available for Appropriation
Appropriation
Proposed Dividends on Prefernce Shares

Proposed Dividends on Ordinary Shares

Tax on Dividends
General Reserve
Special Reserve
Debenture Redemption Reserve
Statutory Reserve
Total Appropriation
Balance Carried to Balance Sheet

7,186
1,034
15,287
62
23,569

9,429
1,634
15,247
40
26,349

33,349

48,390

FY 08A

FY 09A

FY 10A

FY 11E

FY 12E

FY 13E

FY 14E

1,340,868
25,531
1,315,336
4,759
1,320,095

1,499,849
26,557
1,473,293
2,657
1,475,949

1,042,298
18,367
1,023,931
11,859
1,035,790

1,073,567
36,352
1,037,215
13,044
1,050,259

1,137,981
25,101
1,112,880
14,349
1,127,229

1,229,020
28,036
1,200,984
15,784
1,216,767

1,327,341
31,973
1,295,368
17,362
1,312,730

576,595
602,287
(16,492)
168,996
382,721
40,854
41,370
1,219,736

605,293
729,377
19,762
179,751
363,127
32,902
42,654
1,367,572

547,506
440,915
6,600
164,630
331,359
30,221
44,917
1,018,642

477,361
440,163
6,600
128,317
297,773
31,365
44,671
948,889

521,087
466,572
6,600
148,891
319,436
38,209
46,159
1,025,869

559,088
503,898
6,600
162,279
343,540
32,862
46,670
1,095,848

615,557
530,937
6,600
179,307
383,438
33,033
46,211
1,179,526

100,359

108,378

17,148

101,370

101,360

120,919

133,204

(1,500)
5,783
59,068
63,351

(40,945)
(40,945)

(16,837)
(16,837)

33,537
6,746
210
40,493

19,971
(1,219)
188
18,940

21,625
(107)
21,518

30,411
(107)
30,304

30,408
(107)
30,301

36,276
(107)
36,169

39,961
(107)
39,854

123,218

48,492

(21,208)

71,066

71,059

84,750

93,350

(52,885)
245
3,989
(48,651)

(16,560)
(64)
2,141
(14,483)

(118)
40
(78)

74,567

34,009

(21,286)

71,066

71,059

84,750

93,350

1,403
1,682

(425)
607

130
1,269

895
1,546

490
1,228

340
1,272

553
1,583

74,845
11,494
48,390

35,042
75,987
92,740

(20,147)
(3,310)
105,552

71,717
71,717
65,983

71,797
71,797
118,277

85,683
85,683
170,652

94,380
94,380
236,913

123,235

127,782

85,405

137,700

190,075

256,335

331,293

222

1,095

459

459

459

459

459

11,679
2,078
15,491
63
963
30,495

11,679
2,176
6,722
42
515
22,230

7,092
1,543
5,526
486
4,000
317
19,423

7,092
1,543
5,526
486
4,000
317
19,423

7,092
1,543
5,526
486
4,000
317
19,423

7,092
1,543
5,526
486
4,000
317
19,423

7,092
1,543
5,526
486
4,000
317
19,423

92,740

105,552

65,983

118,277

170,652

236,913

311,871

FY 15E

1,433,529
36,848
1,396,680
19,098
1,415,778
642,113
573,411
6,600
185,459
403,708
33,869
46,347
1,249,394
166,385
-

49,915
(107)
49,809
116,576
116,576
701
1,702
117,577
117,577
311,871
429,447

459

7,092
1,543
5,526
486
4,000
317
19,423
410,025

Balance Sheet

(Unless otherwise specified, all financials are in INR Million)

FY 06A

FY 07A

Assets
Fixed Assets
Gross Block
Less: Acculated Depreciation
Less: Impairment
Net Block

166,307
71,058
942
94,307

200,838
90,892
1,004
108,942

13,574

33,264

107,881

142,205

1,140

2,197

Investments

34,789

164,975

Current Assets, Loans and Advances

Inventories
Sundry Debtors
Cash and Bank Balances
Deferred Tax Assets
Interest Accrued on Investments
Loans and Advances
Total Current Assets

27,733
12,187
7,768
16
11
11,372
59,087

38,881
16,865
108,880
69
12
19,633
184,341

202,897

493,717

25,034
8,740

49,612
199,643

9,938
1,277
14,026
32,309
10,947
68,496

7,929
6,021
175
11,183
54,408
20,637
100,352

102,270

349,607

5,530
97,657
(2,560)
100,627

5,800
1,471
138,938
(2,098)
144,110

Capital Work in Progress

Total Fixed Assets
Goodwill

Total Assets
Liabilities
Loans Fund
Secured Loans
Unsecured Loans
Current Liabilities & Provisions
Deferred Tax Liabilities
Minority Interest
Waarants Issued by Subsidiary Company
Provision for Employee Separation Compensation
Current Liabilities
Provisions
Total Current Liabilities & Provisions
Total Liabilities
Net Worth represented by
Share Capital
Share Warrants
Reserves & Surplus
Add/(Less) Foreign Currency Monetary Item
Less: Miscellaneous Expenditure
Net Worth

Total Libialities & Equity Capital

Check

202,897
TRUE

493,717
TRUE

FY 08A

FY 09A

FY 10A

FY 11E

FY 12E

FY 13E

FY 14E

962,294
599,389
31,717
331,187

994,587
598,581
31,830
364,175

972,890
579,029
28,610
365,252

1,014,890
623,699
391,191

1,040,640
669,858
370,782

1,040,640
716,528
324,112

1,040,640
762,739
277,901

88,476

88,883

92,706

128,828

159,317

196,643

185,828

419,663

453,059

457,958

520,019

530,099

520,755

463,729

180,500

153,649

145,418

145,418

145,418

145,418

145,418

33,674

64,111

54,178

65,013

78,016

93,619

112,343

230,643
185,583
42,319
297
90
155,823
614,755

216,684
129,535
61,484
1,074
68
130,768
539,614

186,866
115,124
68,151
1,488
76
68,460
440,166

199,030
73,202
149,820
1,488
76
91,421
515,036

210,020
146,211
56,867
1,488
76
100,778
515,441

231,754
103,606
193,727
1,488
76
100,345
630,995

233,725
163,929
215,073
1,488
76
106,533
720,825

1,248,592

1,210,432

1,097,721

1,245,487

1,268,975

1,390,788

1,442,315

354,150
182,098

342,439
256,566

280,593
250,410

290,593
275,410

279,693
275,410

279,693
275,410

279,693
275,410

24,841
8,368
175
10,801
263,328
64,504
372,017

18,168
8,974
175
10,424
230,717
71,480
339,938

18,029
8,843
175
9,637
233,788
65,974
336,446

18,029
14,409
175
9,637
276,640
65,974
384,863

18,029
10,668
175
9,637
262,393
65,974
366,876

18,029
11,073
175
9,637
317,542
65,974
422,429

18,029
11,494
175
9,637
293,690
65,974
398,998

908,264

938,943

867,450

950,867

921,980

977,533

954,102

62,026
279,858
(1,556)
340,328

62,028
215,233
(4,717)
(1,055)
271,489

8,867
219,334
2,070
230,271

9,437
285,183
294,620

9,437
337,557
346,995

9,437
403,818
413,256

9,437
478,776
488,213

1,248,592

1,210,432

1,097,721

1,245,487

1,268,975

1,390,788

1,442,315

TRUE

TRUE

TRUE

TRUE

TRUE

TRUE

TRUE

FY 15E

1,040,640
809,086
231,554
200,694
432,248
145,418
134,812

268,992
113,119
396,087
1,488
76
120,281
900,044
1,612,523

279,693
275,410

18,029
12,002
175
9,637
365,235
65,974
471,052
1,026,155

9,437
576,930
586,367

1,612,523
TRUE

Reserves

(Unless otherwise specified, all financials are in INR Million)

Reserves & Surplus
Securities Premium Account
Amalgamation Reserve
Debenture Redemption Reserve
Capital Redemption Reserve
Capital Reserve
Capital Reserve (Arising on Consolidation)
General Reserve
Investment Allowance (Utilised) Reserve
Export Profit Reserve
Foreign Exchange Fluctuation Reserve
Foreign Currency Translation Reserve
Contributions for Capital Expenditure
Contingency Reserve
Debenture Forfeiture Reserve
Special Reserve
Statutory Reserve
Acturial Gain/(Loss)
Cash Flow Hedge Reserve
Impact of Restaments
Total Reserves & surplus (Before P&L)
Profit & Loss Account
Total Reserves & surplus

FY 06A

FY 07A

8,292
11
646
208
160
110
47,375
2
13
110
371
100
0
196
6,714
64,308

22,594
11
646
208
160
159
59,316
2
13
(52)
15
427
100
0
236
6,714
90,548

33,349

48,390

97,657

138,938

FY 08A

FY 09A

FY 10A

FY 11E

FY 12E

FY 13E

FY 14E

63,921
11
646
208
165
162
76,972
2
13
397
(12,733)
465
100
0
299
963
59,068
(3,542)
187,117

61,128
11
646
208
193
165
78,394
2
13
14
(48,712)
572
100
0
341
1,478
4,103
11,025
109,680

140,315
4
1,046
208
216
202
83,919
2
13
14
(59,970)
729
100
0
827
1,795
(3,131)
615
(13,554)
153,352

140,315
4
1,046
208
216
202
83,919
2
13
14
(59,970)
729
100
0
827
1,795
(3,131)
615
166,905

140,315
4
1,046
208
216
202
83,919
2
13
14
(59,970)
729
100
0
827
1,795
(3,131)
615
166,905

140,315
4
1,046
208
216
202
83,919
2
13
14
(59,970)
729
100
0
827
1,795
(3,131)
615
166,905

140,315
4
1,046
208
216
202
83,919
2
13
14
(59,970)
729
100
0
827
1,795
(3,131)
615
166,905

92,740

105,552

65,983

118,277

170,652

236,913

311,871

279,858

215,233

219,334

285,183

337,557

403,818

478,776

FY 15E

140,315
4
1,046
208
216
202
83,919
2
13
14
(59,970)
729
100
0
827
1,795
(3,131)
615
166,905
410,025
576,930

Revenue

(Unless otherwise specified, all financials are in $ Million)

FY 06A

FY 07A

Revenue Extracted
External Sales
Steel
Others
Unallocable
Elimainations
Total External Sales

171,089
32,093
203,182

213,430
38,742
252,172

FY 08A

FY 09A

FY 10A

1,177,332
133,860
4,144
1,315,336

1,334,818
131,755
6,719
1,473,293

937,062
82,972
3,898
1,023,931

FY 11E

FY 12E

FY 13E

FY 14E

FY 15E

Cash Flow Statement

(Unless otherwise specified, all financials are in INR Million)

FY 06A

Cashflow from Operations

PAT
Less: Depreciation
Less: Increase in Inventories
Less: Increase in Sundry Debtors
Less: Increase in Deferred Tax Asstes
Less: Increase in Loans and Advances
Less: Increase in Interest Accrued on Investments
Add: Increase in Current Liabilities
Add: Increase in Minority Interest
Add: Increase in Waarants Issued by Subsidiary Company
Add: Increase in Provision for Employee Separation Compensation
Add: Increase in Deferred Tax Liabilities
Add: Increase in Provisions
Net Cashflow from Operations

FY 07A

41,390
19,834
(11,148)
(4,678)
(53)
(8,262)
(1)
22,099
4,745
175
(2,843)
(2,009)
9,690
68,939

Cashflow from Investment Activities

Less: Increase in Gross Block(Fixed Asstes)
Less: Imapairement
Less: Increase in CWIP
Less: Increase in Goodwill
Less: Increase in Investments
Net Cashflow from Investment Activities

(34,531)
62
(19,690)
(1,057)
(130,186)
(185,401)

Cashflow from Financing Activities

Less: Increse in Reserves
Less: Appropriations
Add: Increase in Secured Loans
Add: Increase in Unsecured Loans
Add: Increase in Share Warrants
Less: Miscelleaneous Expensiture
Less; Foreign Currency Monetary Item
Add: Increase in Share Capital
Net Cashflow from Financing Activities

26,240
(26,349)
24,578
190,903
1,471
462
270
217,574

Net Change in Cash

101,112

Cash Balance
Opening Cash Balance
Net Cashflow
Closing Cash Balance
Cash Balance in Balance Sheet

7,768
101,112
108,880
7,768

108,880

Check

TRUE

FY 08A

FY 09A

FY 10A

FY 11E

FY 12E

FY 13E

FY 14E

74,845
508,497
(191,762)
(168,718)
(228)
(136,190)
(78)
208,920
2,347
(383)
16,913
43,868
358,032

35,042
(808)
13,959
56,048
(777)
25,055
22
(32,611)
606
(376)
(6,673)
6,975
96,461

(20,147)
(19,552)
29,818
14,411
(414)
62,309
(8)
3,070
(131)
(787)
(139)
(5,506)
62,923

71,717
44,671
(12,163)
41,923
(22,961)
42,852
5,565
171,604

71,797
46,159
(10,991)
(73,010)
(9,358)
(14,246)
(3,740)
6,612

85,683
46,670
(21,733)
42,606
434
55,148
405
209,212

94,380
46,211
(1,972)
(60,323)
(6,189)
(23,852)
421
48,678

(761,456)
30,713
(55,212)
(178,303)
131,301
(832,957)

(32,293)
113
(408)
26,850
(30,437)
(36,174)

21,697
(3,221)
(3,823)
8,231
9,933
32,817

(42,000)
(28,610)
(36,122)
(10,836)
(117,567)

(25,750)
(30,489)
(13,003)
(69,242)

(37,326)
(15,603)
(52,929)

10,815
(18,724)
(7,909)

96,570
(30,495)
304,538
(17,546)
(1,471)
541
56,226
408,364

(77,437)
(22,230)
(11,711)
74,469
502
(4,717)
2
(41,123)

43,671
(19,423)
(61,846)
(6,156)
1,055
6,786
(53,160)
(89,073)

13,554
(19,423)
10,000
25,000
(2,070)
570
27,632

(19,423)
(10,900)
(30,323)

(19,423)
(19,423)

(19,423)
(19,423)

(66,561)

19,165

6,667

81,669

(92,953)

136,860

21,347

108,880
(66,561)
42,319

42,319
19,165
61,484

61,484
6,667
68,151

68,151
81,669
149,820

149,820
(92,953)
56,867

56,867
136,860
193,727

193,727
21,347
215,073

42,319

61,484

68,151

149,820

56,867

193,727

215,073

TRUE

TRUE

TRUE

TRUE

TRUE

TRUE

TRUE

FY 15E

117,577
46,347
(35,267)
50,809
(13,748)
71,545
509
237,771

(14,866)
(22,469)
(37,335)

(19,423)
(19,423)

181,014

215,073
181,014
396,087
396,087

TRUE

Debt Schedule

(Unless otherwise specified, all financials are in INR Million)

FY 06A

Unsecured Loans
Opening Balance
Add: New Issued
Less: Repayments
Closing Balance

8,740
190,903

Secured Loans
Opening Balance
Add: New Issued
Less: Repayments
Closing Balance
Average Loan Outstanding
Interest Rate
Interest Expense

8,740

199,643

25,034

25,034
24,578
49,612
70,757
3%
1,877

Historical Debt Sources

Secured Loans Extracted
Banks and Financial Institutions
Joint Plant Committee Steel Development Fund
Privately Placed Non Convertible Debentures
Working Capital Demand Loans / Term Loans from Banks
Cash Credit / Packing Credits from Banks
Government of India
Assets Under Lease
Total Secured Loans
Unsecured Loans Extracted
Banks and Financial Institutions
Fixed Deposits (including interest accrued and due)
Privately placed nonconvertible debentures
Housing Development Finance Corporation Ltd
Convertible Alternate Account Securities
Foreign Currency Convertible Bonds
Assets under lease
Interest free loans under Sales Tax Deferral Scheme
Others
Total Unsecured Loans

FY 07A

635
16,093
4,625
2,953
722
0
7
25,034
TRUE

27,357
16,502
1,750
1,221
2,738
0
44
49,612
TRUE

8,102
369
124
6
140
8,740
TRUE

198,813
241
87
5
497
199,643
TRUE

FY 08A

FY 09A

FY 10A

FY 11E

FY 12E

FY 13E

FY 14E

199,643
17,546
182,098

182,098
74,469
256,566

256,566
6,156
250,410

250,410
25,000
275,410

275,410
275,410

275,410
275,410

275,410
275,410

49,612
304,538
354,150

354,150
11,711
342,439

342,439
61,846
280,593

280,593
10,000
290,593

290,593
10,900
279,693

279,693
279,693

279,693
279,693

196,376
21%
40,854

283,813
12%
32,902

282,502
11%
30,221

274,252
11.44%
31,365

280,277
13.63%
38,209

277,552
11.84%
32,862

277,552
11.90%
33,033

327,261
17,006
834
1,200
3,687
0
4,161
354,150
TRUE

317,512
17,524
868
500
2,352
0
3,682
342,439
TRUE

256,729
18,055
450
900
1,146
0
3,312
280,593
TRUE

130,088
144
55
43,299
7,931
5
576
182,098
TRUE

162,421
68
32,500
30
54,739
6,339
5
464
256,566
TRUE

145,462
64
54,009
12
21,168
24,572
4,496
38
588
250,410
TRUE

FY 15E

275,410
275,410

279,693
279,693
277,552
12.20%
33,869

Sundry Debtors

(Unless otherwise specified, all financials are in $ Million)

Sundry Debtors Extracted
Due for a period exceeding six months
Others
Less: Provision for doubtful debts
Total Sundry Debtors

FY 06A

FY 07A

1,573
11,355
741
12,187

2,927
15,818
1,880
16,865

FY 08A

FY 09A

FY 10A

7,523
182,815
4,754
185,583

8,043
126,362
4,870
129,535

7,819
112,467
5,162
115,124

FY 11E

FY 12E

FY 13E

FY 14E

FY 15E

Current Liabilities

(Unless otherwise specified, all financials are in INR Million)

Current Liabilites
Sundry Creditors
Interest Accrued but not Due
Advances Received from customers
Unpaid Dividens etc.
Total Current Liabilities

FY 06A

FY 07A

29,662
289
2,056
302
32,309

50,766
498
2,910
234
54,408

FY 08A

FY 09A

FY 10A

FY 11E

FY 12E

FY 13E

FY 14E

256,300
3,186
3,368
475
263,328

217,933
5,502
6,783
499
230,717

220,102
7,712
5,453
521
233,788

262,268
7,712
6,138
521
276,640

249,044
7,712
5,116
521
262,393

303,173
7,712
6,135
521
317,542

278,675
7,712
6,782
521
293,690

FY 15E

349,721
7,712
7,281
521
365,235

Assets Schedule

(Unless otherwise specified, all financials are in INR Million)

Opening Gross Block
Addition of Asset
Removal of Asset
Closing Gross Block
Depreciation Expense
Accumulated Depreciation
Imapirment
Net Block

FY 06A

FY 07A

166,307

166,307
34,531
200,838

8,604
71,058
942
94,307

10,110
90,892
1,004
108,942

FY 08A

FY 09A

FY 10A

FY 11E

FY 12E

FY 13E

FY 14E

200,838
761,456
962,294

962,294
32,293
994,587

994,587
21,697
972,890

972,890
42,000
1,014,890

1,014,890
25,750
1,040,640

1,040,640
1,040,640

1,040,640
1,040,640

41,370
599,389
31,717
331,187

42,654
598,581
31,830
364,175

44,917
579,029
28,610
365,252

44,671
623,699
391,191

46,159
669,858
370,782

46,670
716,528
324,112

46,211
762,739
277,901

FY 15E
1,040,640
1,040,640
46,347
809,086
231,554

Valuation
Risk Free Rate
Market Risk Premium
Beta
Cost of Equity
Tax Rate
Terminal Growth Rate
No of shares Outstanding
Tax Rate
(Unless otherwise specified, all financials are in INR Million)

Millions

6.38%
9%
1.54
20%
34%
2%
943.74
34%
FY 06A

Net Income
Add: Depreciation
Add: Interest*(1-Tax Rate)
Less: Fixed Capital Investment
Less: Increase in Work in Progress
Working Capital Investment
Inventories
Sundry Debtors
Deferred Tax Assets
Interest Accrued on Investments
Loans and Advances
Deferred Tax Liabilities
Minority Interest
Waarants Issued by Subsidiary Company
Provision for Employee Separation Compensation
Current Liabilities
Provisions
Less:Total Working Capital Investment
Free Cash Flow to firm
Less: Interest*(1-Tax Rate)
Add: Net Borrowing
Free Cash Flow to Equity
Present Value of FCFE
Terminal Value of FCFE
Total Free Cash Flow to Equity
Value Per share

FY 07A

41,390
10,110
1,239
34,531
19,690
11,148
4,678
53
1
8,262
2,009
(4,745)
(175)
2,843
(22,099)
(9,690)
(7,715)
3,755
(1,239)
215,481
220,475

Rs.

337,896
263,359
601,255
637

FY 08A

FY 09A

FY 10A

FY 11E

FY 12E

FY 13E

FY 14E

74,845
41,370
26,964
761,456
55,212

35,042
42,654
21,715
32,293
408

(20,147)
44,917
19,946
(21,697)
3,823

71,717
44,671
20,701
42,000
36,122

71,797
46,159
25,218
25,750
30,489

85,683
46,670
21,689
37,326

94,380
46,211
21,802
(10,815)

191,762
168,718
228
78
136,190
(16,913)
(2,347)
383
(208,920)
(43,868)
225,310
(952,727)
(26,964)
286,992
(638,771)

(13,959)
(56,048)
777
(22)
(25,055)
6,673
(606)
376
32,611
(6,975)
(62,228)
85,507
(21,715)
62,758
169,980

(29,818)
(14,411)
414
8
(62,309)
139
131
787
(3,070)
5,506
(102,623)
125,321
(19,946)
(68,002)
77,265

12,163
(41,923)
22,961
(5,565)
(42,852)
(55,216)
72,781
(20,701)
35,000
128,482

10,991
73,010
9,358
3,740
14,246
111,345
(74,846)
(25,218)
(10,900)
(60,528)

21,733
(42,606)
(434)
(405)
(55,148)
(76,859)
150,197
(21,689)
171,886

1,972
60,323
6,189
(421)
23,852
91,914
37,691
(21,802)
59,493

FY 15E

117,577
46,347
22,354
14,866
35,267
(50,809)
13,748
(509)
(71,545)
(73,848)
200,552
(22,354)
222,905

This open source financial model is for information purposes only. Due efforts have been taken by Pristine and its
employees in preparation of this model to ensure that the information is accurate to the best of their knowledge and
belief. The primary source of information contained in the report has been the DRHP filing of the company with SEBI.
Pristine, makes no representations or warranties regarding the accuracy or completeness of such information and
expressly disclaims any and all liabilities based on such information or on omissions there from.
The analysts who compiled this open source financial model hereby state that the contents in the document reflect
his/her/their views and opinions on the subject matter. Pristine, and its employees/ analysts do conduct trainings and
from time to time to seek establish business or financial relationships with companies covered in the open research
models. As a result, investors should be aware that Pristine and/or such individuals may have conflicts of interests
that could affect the objectivity of this report.

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www.edupristine.com
info@edupristine.com
Pristine is India's largest authorized training provider for CFA, FRM, PRM and Financial Modeling. It has
conducted more than 300,000+ man-hours of finance trainings for individuals and corporates in all the major Indian
cities and outside India.

n by Pristine and its

f their knowledge and
he company with SEBI.
uch information and
m.

the document reflect

o conduct trainings and
d in the open research
conflicts of interests

anagement - Pristine

odeling. It has
n all the major Indian