GLOBAL BUSINESS SCHOOL, HUBLI – 580025

Academic Year: 2017-2019

Submission of Project

Semester : 3rd SEM

Division : ATHENS

Subject : Investment Decision

University Seat No Student Name

/Roll No

17MBA265/A49 SACHIN ASUNDI

Last Date:22/11/2018 Date of Submission: 22/11/2018

Calculation of Expected cash Flows

 Calculation of cash Inflows for 5 years from 2014-2018 (in Rs Cr’s)

Bajaj Auto

Particulars Mar '18 Mar '17 Mar '16 Mar '15 Mar '14
Sales 26,456.50 23,019.29 23,595.80 21,911.70 20,874.82
Less: Variable cost 17,887.56 15,123.77 15,555.25 15,466.55 14,395.36
Contribution 8,568.94 7,895.52 8,040.55 6,445.15 6,479.46
Less: Fixed Cost 2,484.25 2,264.24 2,185.88 2,086.47 1,667.31
PBDIT 6,084.69 5,631.28 5,854.67 4,358.68 4,812.15
Less: Interest 1.31 1.4 1.05 6.49 0.49
PBDT 6,083.38 5,629.88 5,853.62 4,352.19 4,811.66
Less: Depreciation 314.8 307.29 307.16 267.4 179.61
PBT 5,768.58 5,322.59 5,546.46 4,084.79 4,632.05
Less: Tax 1,714.47 1,508.07 1,617.65 1,271.05 1,388.73
PAT 4,054.11 3,814.52 3,928.81 2,813.74 3,243.32
ADD: Depreciation 314.8 307.29 307.16 267.4 179.61
Cash Inflow 3,739.31 3,507.23 3,621.65 2,546.34 3,063.71

Calculation of Cash Outflow

Net Cash (used in)/from

Investing Activities -1918.02 -3688.31 -18.83 -414.35 -2141.49

Calculation of Variable cost

Raw material 17,787.30 15,027.31 15,434.59 15,351.85 14,289.20

Power and Fuel 100.26 96.46 120.66 114.7 106.16

Variable cost 17,887.56 15,123.77 15,555.25 15,466.55 14,395.36

Calculation of Fixed Cost

Employee Cost 1,069.09 997.07 917.12 897.3 726.58

Selling and
Admin
Expenses 437.39 395.32 434.21 0 0
Miscellaneous
Expenses 977.77 871.85 834.55 1,189.17 940.73
Fixed Cost 2,484.25 2,264.24 2,185.88 2,086.47 1,667.31
Calculation of Cash Inflow for 5 years from 2014-2018 (In Rs CR’s)

Hindustan Zinc

Particulars Mar '18 Mar '17 Mar '16 Mar '15 Mar '14
Sales 23,579.00 20,420.00 18,012.00 17,752.08 15,690.59
Less: Variable cost 2963 2556 2469 2934.08 2989.94
Contribution 20,616.00 17,864.00 15,543.00 14,818.00 12,700.65
Less: Fixed Cost 6351 5654 6158 4580.18 3901.41
PBDIT 14,265.00 12,210.00 9,385.00 10,237.82 8,799.24
Less: Interest 283 202 17 23.51 44.94
PBDT 13,982.00 12,008.00 9,368.00 10,214.31 8,754.30
Less: Depreciation 1,483.00 1,811.00 745 644.19 784.59
PBT 12,499.00 10,197.00 8,623.00 9,570.12 7,969.71
Less: Tax 3,221.00 1,884.00 448 1,392.12 1,065.09
PAT 9,278.00 8,313.00 8,175.00 8,178.00 6,904.62
ADD: Depreciation 1,483.00 1,811.00 745 644.19 784.59
Cash Inflow 10,761.00 10,124.00 8,920.00 8,822.19 7,689.21

Calculation of Cash Outflow

Net Cash (used in)/from

Investing Activities 2396 12007 -3236 -3806.96 -3955.49

Calculation of Variable cost

Raw material 1,310.00 1,496.00 1,065.00 1,765.60 1,834.81

Power and Fuel 1,653.00 1,060.00 1,404.00 1,168.48 1,155.13
Variable cost 2,963.00 2,556.00 2,469.00 2,934.08 2,989.94

Calculation of Fixed Cost

Employee Cost 776 722 774 868.91 741.73

Other manufacturing
Expense 417 279 0 0 0

Miscellaneous Expenses 5,158.00 4,653.00 5,384.00 3,711.27 3,159.68

Fixed Cost 6,351.00 5,654.00 6,158.00 4,580.18 3,901.41
Calculation of Cash Inflow for 5 years from 2014-2018 (In Rs CR’s)

POWER GRID

Particulars Mar '18 Mar '17 Mar '16 Mar '15 Mar '14
Sales 31,000.19 26,657.50 21,281.13 17,780.04 15,721.41
Less: Variable cost 249.75 227.67 166.37 171 341.63
Contribution 30,750.44 26,429.83 21,114.76 17,609.04 15,379.78
Less: Fixed Cost 3565.04 2882.57 2355.04 2207.81 1932.31
PBDIT 27,185.40 23,547.26 18,759.72 15,401.23 13,447.47
Less: Interest 7,590.66 6,303.83 5,022.97 3,979.32 3,167.52
PBDT 19,594.74 17,243.43 13,736.75 11,421.91 10,279.95
Less: Depreciation 9,091.25 7,662.80 6,182.76 5,085.41 3,995.68
PBT 10,503.49 9,580.63 7,553.99 6,336.50 6,284.27
Less: Tax 2,237.89 2,049.61 1,592.01 1,310.21 1,766.33
PAT 8,265.60 7,531.02 5,961.98 5,026.29 4,517.94
ADD: Depreciation 9,091.25 7,662.80 6,182.76 5,085.41 3,995.68
Cash Inflow 17,356.85 15,193.82 12,144.74 10,111.70 8,513.62

Calculation of Cash Outflow

Net Cash (used in)/from

Investing Activities -24626.6 -23433.6 -21147.6 -23843.5 -26377.6

Calculation of Variable cost

Raw material 8.67 3.92 4.59 1.02 219.46

Power and Fuel 241.08 223.75 161.78 169.98 122.17
Variable cost 249.75 227.67 166.37 171 341.63

Calculation of Fixed Cost

Employee Cost 1,605.89 1,377.13 980.54 1,023.65 941.68

Selling and Diistribution 14.01 15.15 11.85 12.22 7.62

Miscellaneous Expenses 1,945.14 1,490.29 1,362.65 1,171.94 983.01

Fixed Cost 3,565.04 2,882.57 2,355.04 2,207.81 1,932.31