FINANCIAL

Cost of Project and Means of Finance

(Rs. In million)
Land and site development
50
Building
Plant and machinery
Miscellaneous fixed assets
Preliminary
expenses
Pre-operative
expenses
( including interest during
construction)
Contingency margin
Working capital margin
TOTAL
The proposed means of
finance
Share capital
Term loans

200
150
10
10
50
20
5.85
495.85
(Rs. In million)
450
45.85

State government's special

incentive loan ( Repayable in 6
instalments after 12 years)

0
495.85

No.of equal term loan

instalments
Period of each instalment in
years
First instalment falling due at
the end of operating year
Interest rate on the outsanding
term loan amount
Current asset/liability
requirements

Raw materials(including
consumables)

16
0.5
2
12%

Months

1.5

Stock-in- process
Finished goods
Book debt
Trade credit

0.03
0.5
1.0
0.5

No. of equal annual instalments

in which preliminary expenses
will be written of
Applicable income tax rate
Deduction allowed on Gross total
income

10
30%
0%

Exhibit 6A.1 : Interest on Term Loans

Loan o/s at the
beginning
45.85
45.85
42.984375
37.253125
31.521875
25.790625
20.059375
14.328125
8.596875
2.865625

Year
1
2
3
4
5
6
7
8
9
10

Loan o/s at
the end of the
first half year
45.85
45.85
40.11875
34.3875
28.65625
22.925
17.19375
11.4625
5.73125
0
Exhibit

Year
Installed capacity(TPA)
Production(TPA)
Capacity utilisation
Sales realisation(Rs.million)

1
5000
3500
70%
17062.50

2
5000
4000
80%
19500.00

Exhibit 6A.2 : Working Capital Requirements (Rs.in million)

Item

Norms in
months

Years

Norms in
months

0.5

0.01

Sock-in-process

0.03

1.66

Finished goods
Book debts
Total current assets

0.03
1

1.66
0.00
3.33

Item
Raw materials(including
consumables)

Less: Margin for working capital

from long-term sources(25% of
total
assets)
Less: current
Trade credit
for raw
materials and consumable
stores

0.00

0.5

0.01

Bank finance for working capital

3.34

Year
Building
Plant & machinery & misc. fixed
assets
Total

Year
A. Sales realisation
B.Cost of production
Raw materials
Power
Wages and salaries
Factory
overheads& selling
C. Administration
expenses
Transportation
Advertisement Expeses
Administration expenses
Selling expenses
D. Gross profit before interest

Depreciation schedule for income tax purpose

1
2
23.415
21.073
28.098
51.512

1
17062.50

23.883
44.956
Exhibit 6A.5
2
19500.00

66.54
0.00
756.00
0.50

76.05
0.00
831.60
0.53

150.00
168.00
1.00
1706.25
14532.21

160.00
151.20
1.10
1950.00
16640.72

Profitability Estim

E. Total financial expenses

Interest on term loans
5.50
5.50
Inerest on bank borrowing
0.43
0.49
F.Depreciation
21.72
21.72
G.
Operating profit
14504.55
16613.00
H. Preliminary
expenses written
of
1.00
1.00
I. Profit/Loss before tax
14503.55
16612.00
J. Provision for tax
4342.13
4976.63
K. Profit after tax
10161.42
11635.37
L. Less: Dividend
4064.5692589976 4654.14959484
M. Retained profit
6096.85
6981.22
N. Add: Depreciation
21.72
21.72
Preliminary expenses written of
1
1
O. Net cash accruals
6119.57
7003.94

Exhibit 6A.6
Year
Profit/loss before tax
Add: depreciation for company
law purposes
Less: depreciation for tax
purposes
Less: unabsorbed depreciation
of earlier years
Gross
total income
Less deduction
u/s 80 I at 30%
from gross total income for 10
years
Total income
Income tax @ 30%

Year
Sources of Funds
Share issue
Profit before taxation with
interest added back
Depreciation

1
14503.55

2
16612.00

21.72
14525.27
51.51
14473.76

21.72
16633.72
44.96
16588.77

14473.76

16588.77

14473.76
4342.13

16588.77
4976.63

: Tax C

Exhibit 6A.7 : Projected Cash Flow Statem

Construction
period
1
450
2.10
21.72

Preliminary expenses written of

Increase in secured medium and
long- term borrowings
Increase in bank borrowings for
working capital
Increase in the State Govt's
Special Incentive Loan
Total ( A)
Disposition
of Funds for the
Capital
expenditure
project
Increase in working capital
Preliminary expenses
Decrease in secured medium &
long term borrowings
Interest on term loans
Interest on bank borrowings for
working capital
Taxation
Dividend
Total (B)
Opening balance of cash in hand
and at bank
Net surplus/deficit(A-B)
Closing balance of cash in hand
and at bank

1
45.85
3.34
0
495.85

28.16

480.00
3.33
10.00

5.50

490.00

0.43
4342.13
4064.57
8415.96

5.85

5.85
(8387.80)

5.85

(8381.95)
Exhibit 6A.8 :

At the end of
the construction
period
1
Liabilities
Share capital
Reserves and surplus
Secured loans
Term loans
Working capital advance
Unsecured loans
State Govt. loan
Current liabilities & Provisions
Trade credit

450

450
0.00

45.85

45.85
3.34

0
0.01

Projected Balance She

Total
Assets
Fixed assets
Gross block
Less: Accumulated depreciation
Net fixed assets
Investments
Current
assets, loans and
advances
Raw materials
Stock-in-process
Finished goods
Book debts
Cash & bank balances
Misc. expenditure & losses
Preliminary expenses
Total

495.85

0.00

480.00
480.00

480.00
21.72
458.28

5.85

0.01
1.66
1.66
0.00
-8381.95

10.00
495.85

9.00
-7911.33

FINANCIAL PROJECTIONS
Basic Assumptions
Installed capacity in kgs
Year
1
2
3

5000
Capacity
utilisation
70%
80%
90%

onwards
price
raw material cost

4875
3900

Wages & salaries during (Rs. In

operating year
million)
1
756.0
2
10.0

12.0

Increment per year from 4th

year
5%
Factory overhead
(Rs. In
expenses in year
million)
1
0.5
Increment per year from 2nd
year
Administrative expenses per
year in Rs.million
Selling expenses per year in
Rs.as a percentage of sales
Interest rate on working
finance

Depreciation rates for

6%
1.0
10%

13%
Company
income
law
tax
purposespurposes
under
under
straight line WDV
method
method

raw material
worker
processing- ot
finish rubber
total cost

price
gain-loss

Building
Plant and machinery
Miscellaneous fixed assets

Dividends
Planned to be paid from the
year
Rate of dividend planned for
the second year
Increase proposed
thereafter once in years
Percentage of increase

3.34%
7.42%
7.42%

10%
15.00%
15.00%

2
12%
2
2%

terest on Term Loans

( Rs.inTotal
million)
Interest
Interest for for the
interest for
Loan o/s at the end of
the first
second
the term
half year loan
the second half year
half year
45.85
2.75
2.75
5.50
42.984375
2.75
2.75
5.50
37.253125
2.58
2.41
4.99
31.521875
2.24
2.06
4.30
25.790625
1.89
1.72
3.61
20.059375
1.55
1.38
2.92
14.328125
1.20
1.03
2.24
8.596875
0.86
0.69
1.55
2.865625
0.52
0.34
0.86
0
0.17
0.00
0.17
Exhibit 6A.4 : Sales realisation
3
4
5
6
5000
5000
5000
5000
4500
4500
4500
4500
90%
90%
90%
90%
21937.50
21937.50
21937.50 2193750.00

equirements (Rs.in million)

Years

Exhibit 6A.3: Depreciation Schedu

Asset valuation for
Asset
expenses

0.01

35.65

1.90

#VALUE!

1.90
0.00
3.81

2.14
0.00
#VALUE!

0.00

0.00

0.01

35.65

3.80

#VALUE!

Land
Building
Plant &
machinery
Misc.fixed
assets

Depreciation schedule f

Building
Plant &
machinery
Misc.fixed
assets
Annual
depreciation

hedule for income tax purposes ( Written down value method)

3
4
5
6
18.966
17.069
15.362
13.826

xhibit 6A.5

20.300
39.266

s
17.069

14.667
30.029

12.467
26.293

Profitability Estimates (Estimates of Working Results)

3
4
5
6
21937.50
21937.50
21937.50 2193750.00
85.56
0.00
914.76
0.56

85.56
0.00
1006.24
0.60

85.56
0.00
1106.86
0.63

8555.63
0.00
13.89
0.67

170.00
136.08
1.21
2193.75
18741.66

180.00
122.47
1.33
2193.75
18650.03

190.00
110.22
1.46
2193.75
18549.24

1.46
219375.00
1965803.35

( Rs. In mil

4.99
#VALUE!
21.72
#VALUE!
1.00
#VALUE!
#VALUE!
#VALUE!
4654.1495948446
#VALUE!
21.72
1
#VALUE!

4.30
#VALUE!
21.72
#VALUE!
1.00
#VALUE!
#VALUE!
#VALUE!
63
#VALUE!
21.72
1
#VALUE!

Exhibit 6A.6 : Tax Calculation

3
4
#VALUE!
#VALUE!

3.61
#VALUE!
21.72
#VALUE!
1.00
#VALUE!
#VALUE!
#VALUE!
63
#VALUE!
21.72
1
#VALUE!

2.92
#VALUE!
21.72
#VALUE!
1.00
#VALUE!
#VALUE!
#VALUE!
72
#VALUE!
21.72
1
#VALUE!

( Rs. In million)
5
6
#VALUE!
#VALUE!

21.72
#VALUE!
39.27
#VALUE!

21.72
#VALUE!
17.07
#VALUE!

21.72
#VALUE!
30.03
#VALUE!

21.72
#VALUE!
26.29
#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!
#VALUE!

#VALUE!
#VALUE!

#VALUE!
#VALUE!

#VALUE!
#VALUE!

Projected Cash Flow Statements

( Rs. In million)

16618.00
21.72

#VALUE!
21.72

#VALUE!
21.72

#VALUE!
21.72

6A.8 :

0.46

#VALUE!

16641.18

#VALUE!

#VALUE!

#VALUE!

0.48

#VALUE!

2.87
5.50

5.73
4.99

5.73
4.30

5.73
3.61

0.49
4976.63
4654.15
9640.12

#VALUE!
#VALUE!
4654.15
#VALUE!

#VALUE!
#VALUE!
63.00
#VALUE!

#VALUE!
#VALUE!
63.00
#VALUE!

(8381.95)
7001.06

(1380.89)
#VALUE!

#VALUE!
#VALUE!

#VALUE!
#VALUE!

(1380.89)

#VALUE!

#VALUE!

#VALUE!

Projected Balance Sheets

( Rs.in million)

Years
5

450
0.70

450
#VALUE!

450
#VALUE!

450
#VALUE!

42.98
3.80

37.25
#VALUE!

31.52
#VALUE!

25.79
#VALUE!

0.01

35.65

35.65

35.65

497.49

#VALUE!

#VALUE!

#VALUE!

480.00
43.44
436.56

480.00
65.16
414.84

480.00
86.88
393.12

480.00
108.60
371.40

0.01
1.90
1.90
0.00
-1380.89

35.65
#VALUE!
2.14
0.00
#VALUE!

35.65
#VALUE!
2.14
0.00
#VALUE!

35.65
#VALUE!
2.14
0.00
#VALUE!

8.00
-932.51

7.00
#VALUE!

6.00
#VALUE!

5.00
#VALUE!

2000
500
400
1000
3900

4875
975

7
5000
4500
90%
2193750.00

8
5000
4500
90%
2193750.00

9
5000
4500
90%
2193750.00

10
5000
4500
90%
2193750.00

bit 6A.3: Depreciation Schedules (Rs.in million)

Asset valuation for depreciation purposes
Share of
Share of
preoperative contingency
Basic cost
cost
margin
Total

ults)

50

6.10

2.44

58.54

200

24.39

9.76

234.15

150

18.29

7.32

175.61

10

1.22

0.49

11.71

Depreciation schedule for Company Law purposes

3.34%

7.82

7.42%

13.03

7.42%

0.87

(Rs.in millions)

21.72

7
12.443

8
11.199

(Rs.in millions)
9
10
10.079
9.071

10.597
23.040

9.007
20.207

7.656
17.736

6.508
15.579

9
2193750.00

10
2193750.00

8555625000.00
0.00
16.08
0.80

###
0.00
16.89
0.84

( Rs. In millions)
7
8
2193750.00
2193750.00
8555.63
0.00
14.59
0.71

8555625000.00
0.00
15.32
0.75

1.46
1.46
1.46
219375.00
219375.00
219375.00
1965802.62 -8553650642.53 -8553650643.34

1.46
219375.00
###

2.24
#VALUE!
21.72
#VALUE!
1.00
#VALUE!
#VALUE!
#VALUE!
72
#VALUE!
21.72
1
#VALUE!

1.55
#VALUE!
21.72
#VALUE!
1.00
#VALUE!
#VALUE!
#VALUE!
81
#VALUE!
21.72
1
#VALUE!

0.86
#VALUE!
21.72
#VALUE!
1.00
#VALUE!
#VALUE!
#VALUE!
81
#VALUE!
21.72
1
#VALUE!

0.17
#VALUE!
21.72
#VALUE!
1.00
#VALUE!
#VALUE!
#VALUE!
90
#VALUE!
21.72
1
#VALUE!

7
#VALUE!

8
#VALUE!

9
#VALUE!

10
#VALUE!

21.72
#VALUE!
23.04
#VALUE!

21.72
#VALUE!
20.21
#VALUE!

21.72
#VALUE!
17.74
#VALUE!

21.72
#VALUE!
15.58
#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!
#VALUE!

#VALUE!
#VALUE!

#VALUE!
#VALUE!

#VALUE!
#VALUE!

ion)

( Rs. In million)
6

10

#VALUE!
21.72

#VALUE!
21.72

#VALUE!
21.72

#VALUE!
21.72

###
21.72

#VALUE!

#VALUE!

#VALUE!

#VALUE!

###

5.73
2.92

5.73
2.24

5.73
1.55

5.73
0.86

2.87
0.17

#VALUE!
#VALUE!
72.00
#VALUE!

#VALUE!
#VALUE!
72.00
#VALUE!

#VALUE!
#VALUE!
81.00
#VALUE!

#VALUE!
#VALUE!
81.00
#VALUE!

###
###
90.00
###

#VALUE!
#VALUE!

#VALUE!
#VALUE!

#VALUE!
#VALUE!

#VALUE!
#VALUE!

###
###

#VALUE!

#VALUE!

#VALUE!

#VALUE!

###

( Rs.in million)

Years
6

10

450
#VALUE!

450
#VALUE!

450
#VALUE!

450
#VALUE!

450
###

20.06
#VALUE!

14.33
#VALUE!

8.60
#VALUE!

2.87
#VALUE!

0.00
###

35.65

35.65

35.65

35.65

35.65

#VALUE!

#VALUE!

#VALUE!

#VALUE!

###

480.00
130.32
349.68

480.00
152.04
327.96

480.00
173.76
306.24

480.00
195.47
284.53

480.00
217.19
262.81

35.65
#VALUE!
2.14
0.00
#VALUE!

35.65
#VALUE!
2.14
0.00
#VALUE!

35.65
#VALUE!
2.14
0.00
#VALUE!

35.65
#VALUE!
2.14
0.00
#VALUE!

35.65
###
2.14
0.00
###

4.00
#VALUE!

3.00
#VALUE!

2.00
#VALUE!

1.00
#VALUE!

0.00
###

(Rs.in millions)

millions)

Sales
Service
total income
cost
rent
emp.cost
ope.cost
vpc

year1
year2
year3
year4
year5
31200000
35256000 39839280 45018386 50870777
4500000
5085000 5746050 6493037 7337131
35700000
40341000 45585330 51511423 58207908
0
0
0
0
2000000
2260000 2553800 2885794 3260947
13000000
14690000 16599700 18757661 21196157
1560000
1762800 1991964 2250919 2543539
29913600
33802368 38196676 43162244 48773335