Assignment 2&3_liza Dsouza

8/11/2019 Assignment 2&3_liza Dsouza

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Mumbai, INDIA

www.educorporatebridge.com

Project Finance of

JSW

Prepared by

Liza Dsouza

[email protected]

9011188006

MIT-SOB
https://www.educorporatebridge.com/https://www.educorporatebridge.com/


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Corporate Bridge AcademyProject Finance of JSW

TABLE OF CONTENTS

Click on the name of Tab to go to the relevant sheet

Sr. No. Name of Tab Brief Description

1 Industry Overview Overview of the Company and Industry Analysis (Steel)

2 Income statement Historical and forecasted income statement

3 Balance Sheet Historical and forecasted balance sheet

4 Cash Flow Statement Historical and Forecasted cash flow statement

5 Ratio Analysis Ratio Analysis of the Company

6 Assumption Sheet Assumptions to be used for the entire project

7 Project Costs Project cost details

8 Quaterly Capex & Debt Details for calculation of quaterly capex & debt ( Forecasted)

9 Annual Capex & Debt Details for calculation of annual capex & debt ( Forecasted)

10 Profit & Loss Calculation of profit and loss ( Forecasted)

11 Cash Flows Calculation of net cash flows ( Forecasted)

12 Balance Sheet Preparing a balance sheet ( Forecasted)

13 Working Capital Calculating and finding figures of different working capital items (Forecasted)

14 Depreciation Fixed Assets details and forecast

15 DSCR IRR Ratios Calculation of different valuation ratios

16 Recommendation Your Analysis towards the company via your DSCR IRR ratios


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Corporate Bridge AcademyProject Finance of JSW Back to Index

Please Find below Name of sheet to done before submitting Excel File

Depreciation

Disclaimer:You Need to use same template for Assignment 2 and 3.

Assignment 2 - 30 Marks

Name of sheet StatusAssumption Sheet (Projections) Completed

Project Costs (Projections) Completed

Quaterly Capex & Debt (Projections) Completed

Annual Capex & Debt (Projections) Completed

Profit & Loss Completed

Cash Flows Completed

Balance Sheet Completed

Working Capital Completed

Completed


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Corporate Bridge Academy

Project Finance of JSW

Key Dates

S. No Particulars Dates

1 Start of construction 1-Jul-13

2 Construction Period 36

3 Completion Date 1-Jul-16

4 Commercial Production 4-Jul-16

5 End of first year of operations 31-Mar-17

6 No of months of oprn in 1st year of commencement 9

7 Year End of 1st year of construction 31-Mar-14

8 1st Quarter Ending after start of construction 30-Sep-13

9 1st Quarter Ending after start of operation 30-Sep-16

10 Check for IT Dep-Sep check 30-Sep-16

Means of Financing

Particulars

Project Financing Rs cr.

- Equity 6,798.9

- Debt 10,198.3

Total 16,997.2

% Debt 60%

Debt/ Equity Ratio 1.50

Upfront equity 50%

Term Loan

Conditions- Financial Charges 0.5%

- Interest Rate 9.5%

- Moratorium 4 quarters

- Repayment Starts 31-Mar-18

- Ends 31-Mar-24

- No. of Instalments for quarterly repayment 24

- Value of Instalment 424.93

Working Capital Loan

- Interest Rate 10.00%

Sales / Revenues / Costs

Sales Tonnes ('000) Sales (Cr)

MS Slabs 198.5 725.1

Hot Rolled Coils /Steel Plates / Sheets 4,173.9 15,914.2

Galvanized Coils / Sheets 796.0 4,006.1

Cold Rolled Coils / Sheets 715.2 3,113.4

Hot Rolled Steel Plates 92.5 392.2

Colour Coating Coils / Sheets 171.7 1,049.2

Steel Billets and Bloom 210.4 787.0

Long Rolled Products 1,457.0 6,098.9

7,815.2 32,086.1

Production Installed ('000) % Produc

MS Slabs 8,300.0 35.7% 5,65

Hot Rolled Coils / Steel Plates / Sheets 6,700.0 28.8% 5,26Galvanised / Galvanium Coils / Sheets 925.0 4.0% 91

Cold Rolled Coil / Sheets 1,825.0 7.8% 1,62

H R ll d Pl 320 0 1 4% 9


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FG 0.75 month of cost of sa les

Sundry Debtors 1.00 month of sales

Sundry Creditors 0.75 month of purchases

WC Margin 25%

Taxation

Particulars Tax Rates

Excise Duty as per of sales 10%

Corporate Tax Rate 30.00%

MAT Rate 18.00%

Surcharge 10.00%

Dividend Tax Rate 12.50%


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Project Cost Summary

Particulars (Rs Crores)

Land & Site Development 181.70Building & Civil Works 3,488.45

Plant & Machinery 9,334.20

Technical knowhow fees 121.10

Expenses on foreign technicians & training

abroad of local technicians 48.50

Misc. fixed assets 1,097.25

Contingency 713.56

Total Hard Cost 14,984.76

Preliminary & Preoperative Expenses 124.72

Upfront Fee 48.00

IDC 1,469.68

WC Margin 370.02

Total Soft Cost 2,012.43

Total Project Cost 16,997.19

Project Cost Details

S.NoParticulars Cost (Rs Cr) Total Cost

1) Land & Site Development

- Land & Site Devt. 181.70 181.70

Sub-total - 1 181.70

2) Buildings

- Building excluding equipment foundation 3,335.20 3,335.20

- Equipment foundation 153.25 153.25

Sub-total - 2 3,488.45

3) Plant & Machinery

(i) Plant

- Imported 2,017.97

- Indigenous 6,710.42

(ii) Mining Machinery -


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(iii) Stores & Spares

- Imported @ 2.5% 2.50% 50.45

- Indigenous @ 2.5% 2.50% 167.76

- Mining Equipment @ 10% 10.00% -

(iv) Installation, Erection & Commissioning charges 387.60

Sub-total - 3 9,334.20

4) Technical knowhow fees 121.10 121.10

5)


abroad of local technicians 48.50 48.50

6) Miscellaneous Fixed Assets

- Power distribution equipment & transmission lines 429.90

- Railway siding 545.07

- DG sets -

- Air distribution equipment 12.11

- Equipment for water supply 18.16

- Fire fighting equipment 18.16

- Front end loader 36.33

- Workshop equipment 6.05

- Office equipment & computers 6.05

- Misc. tools & tackles 3.63

- Vehicles 12.11

- Laboratory equipment 6.05

- Furniture 3.63

- Misc. for jetty -

Total - MFA 1,097.25 1,097.25

7) Preoperative Expenses

- Establishment 3.63

- Rent, rates & taxes 6.05

- Travelling expenses 6.05

- Misc. expenses (post/mail/legal etc.) 24.22

- Insurance during construction 36.33

- Geological investigation 24.22

- Startup expenses 24.22

Total - preop. expenses 124.72 124.72


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Profit & Loss Statement (Projections)

31-Mar-17 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-21 31-Mar-2

Value of Production

MS Slabs 31-Mar-16 31-Mar-17 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-2

Installed 1,606.3 1,606.3 1,606.3 1,606.3 1,606.3 1,606.3

Capacity Utilization 70% 80% 90% 95% 95% 95%

Production 1,124.4 1,285.1 1,445.7 1,526.0 1,526.0 1,526.0

Average Realization 3.65 3.83 4.03 4.23 4.44 4.6

Average Realization increase (%) 5.0% 5.0% 5.0% 5.0% 5.0%

Total Value of Production 4,106.5 4,927.8 5,821.0 6,451.6 6,774.2 7,112.9

Hot Rolled Coils / Steel Plates / Sheets 31-Mar-16 31-Mar-17 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-2

Installed 1,296.7 1,296.7 1,296.7 1,296.7 1,296.7 1,296.7


Production 907.7 1,037.3 1,167.0 1,231.8 1,231.8 1,231.8




Galvanized Coils / Sheets 31-Mar-16 31-Mar-17 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-2

Installed 179.0 179.0 179.0 179.0 179.0 179.0


Production 125.3 143.2 161.1 170.1 170.1 170.



Total Value of Production 630.7 756.8 894.0 990.8 1,040.4 1,092.4

Cold Rolled Coils / Sheets 31-Mar-16 31-Mar-17 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-2

Installed 353.2 353.2 353.2 353.2 353.2 353.2

Capacity Utilization 70% 80% 90% 95% 95% 95%Production 247.2 282.6 317.9 335.5 335.5 335.5




Hot Rolled Steel Plates 31-Mar-16 31-Mar-17 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-2

Installed 61.9 61.9 61.9 61.9 61.9 61.9


Production 43.4 49.5 55.7 58.8 58.8 58.8



Total Value of Production 183.7 220.5 260.4 288.7 303.1 318.3

Colour Coating Coils / Sheets 31-Mar-16 31-Mar-17 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-2


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Installed 44.9 44.9 44.9 44.9 44.9 44.9


Production 31.4 35.9 40.4 42.7 42.7 42.7



Total Value of Production 192.0 230.4 272.2 301.7 316.7 332.6

Steel Billets and Bloom 31-Mar-16 31-Mar-17 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-2

Installed 483.8 483.8 483.8 483.8 483.8 483.8


Production 338.7 387.1 435.4 459.6 459.6 459.6




Long Rolled Products 31-Mar-16 31-Mar-17 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-2

Installed 474.2 474.2 474.2 474.2 474.2 474.2


Production 331.9 379.3 426.7 450.4 450.4 450.4




Total Value of Production (12 months) 12,306.21 14,767.45 17,444.05 19,333.82 20,300.51 21,315.54

No. of Operational months 9 12 12 12 12 1

Adjusted Value of Production 9,229.66 14,767.45 17,444.05 19,333.82 20,300.51 21,315.54

Add: Opening Stock of FG - 92.85 110.39 126.11 137.65 144.13

Less: Closing Stock of FG 92.85 110.39 126.11 137.65 144.13 150.57

Gross Sales 10,152.00 16,388.79 19,364.81 21,469.20 22,548.92 23,676.78

Excise Duty 922.35 1,621.34 1,920.76 2,135.38 2,248.41 2,361.24

Net Sales 9,229.66 14,767.45 17,444.05 19,333.82 20,300.51 21,315.54

Costs / Expenses 31-Mar-16 31-Mar-17 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-2

Overall Production ('000) 3,150.0 3,600.0 4,050.0 4,275.0 4,275.0 4,275.0

Iron Ore 1.75 5,512.5 6,300.0 7,087.5 7,481.3 7,481.3 7,481.3

Cost per ton 2,936.3 3,083.1 3,237.3 3,399.1 3,569.1 3,747.5 3,934.9

cost escalation 5.0% 5.0% 5.0% 5.0% 5.0% 5.0%

Total Iron Ore Cost (Rs Cr) 1.70 2.04 2.41 2.67 2.80 2.94

Coke 0.75 2,362.5 2,700.0 3,037.5 3,206.3 3,206.3 3,206.3

Cost per ton 13,020.5 13,671.5 14,355.1 15,072.8 15,826.5 16,617.8 17,448.7

cost escalation 5.0% 5.0% 5.0% 5.0% 5.0% 5.0%

Total Coke Cost (Rs Cr) 3.23 3.88 4.58 5.07 5.33 5.59


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- TL 811.36 953.53 968.84 867.92 706.45 544.97

- WC 91.84 111.01 130.82 144.87 152.12 159.67

EBT 6,402.98 11,127.37 13,517.36 15,309.37 16,326.55 17,417.42

Tax 1,481.62 3,573.50 4,290.50 4,828.10 4,553.89 4,962.67

PAT 4,921.35 7,553.87 9,226.86 10,481.27 11,772.66 12,454.75

Tax calculation

PBT 6,402.98 11,127.37 13,517.36 15,309.37 16,326.55 17,417.42

Add:Book Deprn. 784.30 784.30 784.30 784.30 784.30 784.30

Less: IT Deprn. 2,248.54 - - - 1,931.21 1,659.49

Adjusted PBT 4,938.74 11,911.67 14,301.66 16,093.67 15,179.64 16,542.22

Losses carried forward - - - - - -

Profit after adjusting losses 4,938.74 11,911.67 14,301.66 16,093.67 15,179.64 16,542.22

Tax

- Corporate Tax 1,481.62 3,573.50 4,290.50 4,828.10 4,553.89 4,962.67

- MAT - - - - - -

Tax payable 1,481.62 3,573.50 4,290.50 4,828.10 4,553.89 4,962.67

Effective tax rate 23.14% 32.11% 31.74% 31.54% 27.89% 28.49%


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Quarterly Capex & Debt Schedule

Particulars 30-Sep-13

31-Mar-14

Land & Site Development 181.70 90.85

Building & Civil Works 3,488.45 348.85

Plant & Machinery 9,334.20 933.42

Engineering, Supervision & Project Mgmt. 121.10 12.11


abroad of local technicians 48.50 24.25

Miscellaneous Fixed Assets 1,097.25 109.73

Contingency @ 5% 713.56 75.96


Particulars 30-Sep-13


Upfront Fee 48.00

IDC -

WC Margin

Total Soft Cost 60.47

Total Project Cost 1,655.63

Financial Plan 30-Sep-13

Upfront Equity 3399.44

Upfront Equity Drawal 1,655.63

Net Drawal Reqd. -

Debt -

Equity 1,655.63

Debt Schedule 30-Sep-13

Opening Balance -

Add: Debt drawal -

Less: Debt Repayment -

Closing Balance -


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Interest -

IDC 1,469.68 -

Interest to P&L


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31-Dec-13 31-Mar-14 30-Jun-14 30-Sep-14 31-Dec-14 31-Mar-15 30-Jun-15 30-Sep-15

31-Mar-14 31-Mar-14 31-Mar-15 31-Mar-15 31-Mar-15 31-Mar-15 31-Mar-16 31-Mar-16

54.51 18.17 18.17 - - - - -

348.85 348.85 348.85 348.85 348.85 348.85 348.85 348.85

933.42 933.42 933.42 933.42 933.42 933.42 933.42 933.42

18.17 18.17 18.17 18.17 6.06 6.06 6.06 6.06

14.55 9.70 - - - - - -

109.73 109.73 109.73 109.73 109.73 109.73 109.73 54.86

73.96 71.90 71.42 70.51 69.90 69.90 69.90 67.16

1,553.18 1,509.93 1,499.74 1,480.66 1,467.95 1,467.95 1,467.95 1,410.34


12.47 12.47 12.47 12.47 12.47 12.47 12.47 6.24

- 16.15 50.87 88.21 121.22 147.05 170.41 193.65

12.47 28.63 63.34 100.68 133.70 159.53 182.88 199.88

1,565.65 1,538.55 1,563.08 1,581.35 1,601.64 1,627.47 1,650.83 1,610.23


1,565.65 178.16 - - - - - -

- 1,360.40 1,563.08 1,581.35 1,601.64 1,627.47 1,650.83 1,610.23

- 1,360.40 1,563.08 1,581.35 1,198.72 976.48 990.50 966.14

1,565.65 178.16 - - 402.93 650.99 660.33 644.09


- - 1,360.40 2,923.48 4,504.83 5,703.54 6,680.03 7,670.53

- 1,360.40 1,563.08 1,581.35 1,198.72 976.48 990.50 966.14

- - - - - - - -

- 1,360.40 2,923.48 4,504.83 5,703.54 6,680.03 7,670.53 8,636.66


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- - - - - - - -

348.85 - - - - - - -

933.42 - - - - - - -

6.06 6.06 - -

- - - - -

54.86 54.86 54.86 - - - - -

67.16 3.05 2.74 - - - - -

1,410.34 63.96 57.61 - - - - -


6.24 6.24 6.24 - - - - -

216.76 230.54 234.81 - - - - -

370.0

222.99 236.77 241.05 - 370.02 - - -

1,633.34 300.74 298.65 - 370.02 - - -


- - -

1,633.34 300.74 298.65 - 370.02 - - -

980.00 180.44 179.19 - 222.01 - - -

653.33 120.30 119.46 - 148.01 - - -


8,636.66 9,616.66 9,797.11 9,976.30 9,976.30 10,198.31 10,198.31 10,198.31

980.00 180.44 179.19 - 222.01 - - -

- - - - - - - -

9,616.66 9,797.11 9,976.30 9,976.30 10,198.31 10,198.31 10,198.31 10,198.31


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216.76 230.54 234.81 236.94 239.57 242.21 242.21 242.21

216.76 230.54 234.81

236.94 239.57 242.21 242.21 242.21


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31-Dec-17 31-Mar-18 30-Jun-18 30-Sep-18 31-Dec-18 31-Mar-19 30-Jun-19

31-Mar-18 31-Mar-18 31-Mar-19 31-Mar-19 31-Mar-19 31-Mar-19 31-Mar-20

- - - - - - -

- - -

- - -

- - - -

- - - -

- - - - - - -


- - - - - - -

- - - - - - -

- - - - - - -

- - - - - - -


- - - - - - -

- - - - - - -

- - - - - - -


10,198.31 10,198.31 9,773.38 9,348.45 8,923.52 8,498.59 8,073.66

- - - - - - -

- 424.93 424.93 424.93 424.93 424.93 424.93

10,198.31 9,773.38 9,348.45 8,923.52 8,498.59 8,073.66 7,648.73


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242.21 242.21 232.12 222.03 211.93 201.84 191.75

242.21 242.21 232.12 222.03 211.93 201.84 191.75


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30-Sep-19 31-Dec-19 31-Mar-20 30-Jun-20 30-Sep-20 31-Dec-20 31-Mar-21


-

-


- - - -

- - - - - - -

- - - -

- - - -


- - - - - - -

- - - - - - -

- - - - - - -


7,648.73 7,223.80 6,798.87 6,373.94 5,949.02 5,524.09 5,099.16

- - - - - - -

424.93 424.93 424.93 424.93 424.93 424.93 424.93

7,223.80 6,798.87 6,373.94 5,949.02 5,524.09 5,099.16 4,674.23


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181.66 171.57 161.47 151.38 141.29 131.20 121.10

181.66 171.57 161.47 151.38 141.29 131.20 121.10


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30-Jun-21 30-Sep-21 31-Dec-21 31-Mar-22 30-Jun-22 30-Sep-22 31-Dec-22 31-Mar-23




- - - - - - - -

- - - - - - - -

- - - - - - - -


4,674.23 4,249.30 3,824.37 3,399.44 2,974.51 2,549.58 2,124.65 1,699.72

- - - - - - - -

424.93 424.93 424.93 424.93 424.93 424.93 424.93 424.93

4,249.30 3,824.37 3,399.44 2,974.51 2,549.58 2,124.65 1,699.72 1,274.79


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111.01 100.92 90.83 80.74 70.64 60.55 50.46 40.37

111.01 100.92 90.83 80.74 70.64 60.55 50.46 40.37


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- - - - - - - -

- - - - - - - -

- - - - - - - -


1,274.79 849.86 424.93 (0.00) (0.00) (0.00) (0.00) (0.00)

- - - - - - - -

424.93 424.93 424.93 - - - - -

849.86 424.93 (0.00) (0.00) (0.00) (0.00) (0.00) (0.00)


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30.28 20.18 10.09 (0.00) (0.00) (0.00) (0.00) (0.00)

30.28 20.18 10.09 (0.00) (0.00) (0.00) (0.00) (0.00)


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- - - - - - - -

- - - - - - - -

- - - - - - - -


(0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00)

- - - - - - - -

- - - - - - - -

(0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00)


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(0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00)

(0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00)


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Annual Schedule

Particulars

Land & Site Development 181.70

Building & Civil Works 3,488.45

Plant & Machinery 9,334.20

Engineering, Supervision & Project Mgmt. 121.10

Expenses on foreign technicians & training abroad of

local technicians 48.50

Miscellaneous Fixed Assets 1,097.25

Contingency @ 5% 713.56

-



Upfront Fee 48.00

IDC 1,469.68

WC Margin 370.02

Total Soft Cost 2,012.43

Total Project Cost16,997.19

Financial Plan

Upfront Equity

Upfront Equity Drawal

Net Drawal Reqd.

Debt

Equity

Debt Schedule

Opening Balance

Add: Debt drawal

Less: Debt Repayment

Closing Balance

Interest


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IDC

Interest to P&L


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163.53 18.17 - - - -

1,046.54 1,395.38 1,046.54 - - -

2,800.26 3,733.68 2,800.26 - - -

48.44 48.44 24.22 - - -

48.50 - - - - -

329.18 438.90 274.31 54.86 - -

221.82 281.73 207.27 2.74 - -

-

4,658.26 5,916.30 4,352.59 57.61 - -

37.42 49.89 31.18 6.24 - -

48.00 - - - - -

16.15 407.36 811.36 234.81 - -

- - - 370.02 - -

101.57 457.25 842.54 611.07 - -

4,759.83 6,373.55 5,195.13 668.67 - -


- - - - - -

3,399.44 - - - - -

1,360.40 6,373.55 5,195.13 668.67 - -

1,360.40 5,319.63 3,117.08 401.20 - -

3,399.44 1,053.92 2,078.05 267.47 - -

3/31/2014 3/31/2015 3/31/2016 3/31/2017 3/31/2018 3/31/2019

- 14,492.24 32,603.88 39,948.01 40,793.25 36,543.95

1,360.40 5,319.63 3,117.08 401.20 - -

- - - - 424.93 1,699.72

1,360.40 19,811.88 35,720.96 40,349.22 40,368.32 34,844.23

16.15 407.36 811.36 953.53 968.84 867.92


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16.15 407.36 811.36 234.81 - -

- - - 718.72 968.84 867.92


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- - - - - - -

- - - - - - -

- - - - - - -

- - - - - - -

- - - - - - -

- - - - - - -

- - - - - - -

- - - - - - -

- - - - - - -

- - - - - - -

- - - - - - -

- - - - - - -

- - - - - - -

- - - - - - -


- - - - - - -

- - - - - - -

- - - - - - -

- - - - - - -

- - - - - - -

3/31/2020 3/31/2021 3/31/2022 3/31/2023 3/31/2024 3/31/2025 3/31/2026

29,745.08 22,946.20 16,147.33 9,348.45 2,549.58 (0.00) (0.00)

- - - - - - -

1,699.72 1,699.72 1,699.72 1,699.72 1,274.79 - -

28,045.36 21,246.48 14,447.61 7,648.73 1,274.79 (0.00) (0.00)

706.45 544.97 383.50 222.03 60.55 (0.00) (0.00)


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- - - - - - -

706.45 544.97 383.50 222.03 60.55 (0.00) (0.00)


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31-Mar-27

-

-

-

-

-

-

-

-

-

-

-

-

-

-

31-Mar-27

-

-

-

-

-

3/31/2027

(0.00)

-

-

(0.00)

(0.00)


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-

(0.00)


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Depreciation Schedule 31-Mar-14 31-Mar-15

SLM Methold

Land

Opening Block 0.0% - 163.53

Additions during the year 163.53 18.17

Gross Block 163.53 181.70

Depreciation - -

Accumulated Depreciation - -

Net Block 163.53 181.70

Building & Civil Works

Opening Block 3.3% - 1,118.20

Additions during the year 1,118.20 1,568.07Gross Block 1,118.20 2,686.28

Depreciation - -


Net Block 1,118.20 2,686.28

Plant & Machinery

Opening Block 5.3% - 2,992.03

Additions during the year 2,992.03 4,195.76

Gross Block 2,992.03 7,187.79

Depreciation - -


Net Block 2,992.03 7,187.79

Misc. Fixed Assets (incl. Technical knowhow & training fees)

Opening Block 5.3% - 448.66



Depreciation - -


Net Block 448.66 990.32

Allocation of Contingency & Soft Costs (Except WC Margin)

Land & Site Devt. - -

Building & Civil Works 71.67 172.69Plant & Machinery 191.77 462.08

Misc. Fixed Assets 22.54 54.32

Check

Opening Block - 4,722.42


Gross Block 4,722.42 11,046.08

Depreciation - -


39/67


Net Block 4,722.42 11,046.08

WDV Method of Depreciation

31-Mar-14 31-Mar-15

Land

Opening Block 0% - 163.53



Depreciation - -

Net Block 163.53 181.70

Building & Civil Works

Opening Block 10% - 1,118.20


Gross Block 1,118.20 2,686.28

Depreciation - -Net Block 1,118.20 2,686.28

Plant & Machinery

Opening Block 15% - 2,992.03


Gross Block 2,992.03 7,187.79

Depreciation - -

Net Block 2,992.03 7,187.79

Misc. Fixed Assets (incl. Technical knowhow & training fees)

Opening Block 15% - 448.66

Additions during the year 448.66 541.66Gross Block 448.66 990.32

Depreciation - -

Net Block 448.66 990.32

Depreciation for the year - -


40/67


181.70 181.70 181.70 181.70 181.70 181.70 181.70 181.70

- - - - - - - -

181.70 181.70 181.70 181.70 181.70 181.70 181.70 181.70

- - - - - - - -

- - - - - - - -

181.70 181.70 181.70 181.70 181.70 181.70 181.70 181.70

2,686.28 3,991.48 3,991.48 3,991.48 3,991.48 3,991.48 3,991.48 3,991.48

1,305.21 - - - - - - -3,991.48 3,991.48 3,991.48 3,991.48 3,991.48 3,991.48 3,991.48 3,991.48

- 133.32 133.32 133.32 133.32 133.32 133.32 133.32

- 133.32 266.63 399.95 533.26 666.58 799.89 933.21

3,991.48 3,858.17 3,724.85 3,591.54 3,458.22 3,324.91 3,191.59 3,058.28

7,187.79 10,680.19 10,680.19 10,680.19 10,680.19 10,680.19 10,680.19 10,680.19

3,492.41 - - - - - - -

10,680.19 10,680.19 10,680.19 10,680.19 10,680.19 10,680.19 10,680.19 10,680.19

- 563.91 563.91 563.91 563.91 563.91 563.91 563.91

- 563.91 1,127.83 1,691.74 2,255.66 2,819.57 3,383.48 3,947.40

10,680.19 10,116.28 9,552.36 8,988.45 8,424.54 7,860.62 7,296.71 6,732.79

990.32 1,356.65 1,649.07 1,649.07 1,649.07 1,649.07 1,649.07 1,649.07

366.33 292.41 - - - - - -

1,356.65 1,649.07 1,649.07 1,649.07 1,649.07 1,649.07 1,649.07 1,649.07

- 87.07 87.07 87.07 87.07 87.07 87.07 87.07

- 87.07 174.14 261.21 348.28 435.35 522.42 609.49

1,356.65 1,561.99 1,474.92 1,387.85 1,300.78 1,213.71 1,126.64 1,039.57

- - - - - - - -

258.67 - - - - - - -692.15 - - - - - - -

67.80 237.55 - - - - - -

11,046.08 16,210.03 16,502.44 16,502.44 16,502.44 16,502.44 16,502.44 16,502.44

5,163.95 292.41 - - - - - -

16,210.03 16,502.44 16,502.44 16,502.44 16,502.44 16,502.44 16,502.44 16,502.44

- 784.30 784.30 784.30 784.30 784.30 784.30 784.30


41/67

- 784.30 1,568.60 2,352.90 3,137.20 3,921.50 4,705.80 5,490.10

16,210.03 15,718.14 14,933.84 14,149.54 13,365.24 12,580.94 11,796.64 11,012.34


181.70 181.70 181.70 181.70 181.70 181.70 181.70 181.70

- - - - - - - -

181.70 181.70 181.70 181.70 181.70 181.70 181.70 181.70

- - - - - - - -

181.70 181.70 181.70 181.70 181.70 181.70 181.70 181.70

2,686.28 3,991.48 3,592.34 3,592.34 3,592.34 3,592.34 3,233.10 2,909.79

1,305.21 - - - - - - -

3,991.48 3,991.48 3,592.34 3,592.34 3,592.34 3,592.34 3,233.10 2,909.79

- 399.15 - - - 359.23 323.31 290.983,991.48 3,592.34 3,592.34 3,592.34 3,592.34 3,233.10 2,909.79 2,618.81

7,187.79 10,680.19 9,078.16 9,078.16 9,078.16 9,078.16 7,716.44 6,558.97

3,492.41 - - - - - - -

10,680.19 10,680.19 9,078.16 9,078.16 9,078.16 9,078.16 7,716.44 6,558.97

- 1,602.03 - - - 1,361.72 1,157.47 983.85

10,680.19 9,078.16 9,078.16 9,078.16 9,078.16 7,716.44 6,558.97 5,575.13

990.32 1,356.65 1,401.71 1,401.71 1,401.71 1,401.71 1,191.45 1,012.73

366.33 292.41 - - - - - -1,356.65 1,649.07 1,401.71 1,401.71 1,401.71 1,401.71 1,191.45 1,012.73

- 247.36 - - - 210.26 178.72 151.91

1,356.65 1,401.71 1,401.71 1,401.71 1,401.71 1,191.45 1,012.73 860.82

- 2,248.54 - - - 1,931.21 1,659.49 1,426.74


42/67

31-Mar-24 31-Mar-25 31-Mar-26 31-Mar-27

181.70 181.70 181.70 181.70

- - - -

181.70 181.70 181.70 181.70

- - - -

- - - -

181.70 181.70 181.70 181.70

3,991.48 3,991.48 3,991.48 3,991.48

- - - -3,991.48 3,991.48 3,991.48 3,991.48

133.32 - - -

1,066.52 1,066.52 1,066.52 1,066.52

2,924.96 2,924.96 2,924.96 2,924.96

10,680.19 10,680.19 10,680.19 10,680.19

- - - -

10,680.19 10,680.19 10,680.19 10,680.19

563.91 - - -

4,511.31 4,511.31 4,511.31 4,511.31

6,168.88 6,168.88 6,168.88 6,168.88

1,649.07 1,649.07 1,649.07 1,649.07

- - - -

1,649.07 1,649.07 1,649.07 1,649.07

87.07 - - -

696.57 696.57 696.57 696.57

952.50 952.50 952.50 952.50

- - - -

- - - -- - - -

- - - -

16,502.44 16,502.44 16,502.44 16,502.44

- - - -

16,502.44 16,502.44 16,502.44 16,502.44

784.30 - - -


43/67

6,274.40 6,274.40 6,274.40 6,274.40

10,228.04 10,228.04 10,228.04 10,228.04

31-Mar-24 31-Mar-25 31-Mar-26 31-Mar-27

181.70 181.70 181.70 181.70

- - - -

181.70 181.70 181.70 181.70

- - - -

181.70 181.70 181.70 181.70

2,618.81 2,356.93 2,121.24 1,909.11

- - - -

2,618.81 2,356.93 2,121.24 1,909.11

261.88 235.69 212.12 190.912,356.93 2,121.24 1,909.11 1,718.20

5,575.13 4,738.86 4,028.03 3,423.82

- - - -

5,575.13 4,738.86 4,028.03 3,423.82

836.27 710.83 604.20 513.57

4,738.86 4,028.03 3,423.82 2,910.25

860.82 731.70 621.94 528.65

- - - -860.82 731.70 621.94 528.65

129.12 109.75 93.29 79.30

731.70 621.94 528.65 449.35

1,227.27 1,056.28 909.62 783.78


44/67


45/67



Particulars 31-Mar-14 31-Mar-15 31-Mar-16 31-Mar-17 31-Mar-18

Raw Material 1.50 0.8 0.8

WIP 0.03 3.3 3.6FG 0.75 92.9 110.4

Sundry Debtors 1.00 1,128.0 1,365.7

Total CA 1,225.0 1,480.5

Sundry Creditors 0.75 0.4 0.4

TL Installments due in 1 year 424.9 1,699.7

Total CL 425.4 1,700.1

WC Gap 799.6 (219.6)

WC Gap w/o TL installments 1,224.6 1,480.1

WC Margin 306.1 370.0

WC Margin for PC 370.02

WC Borrowings - - - 918.4 1,110.1

WC Interest - - - 91.8 111.0

Opening RM stock - - - - 0.4

RM Required during the year - - - 4.9 6.0

Closing RM stock 0.4 0.4

Purchases 5.3 6.0


46/67


0.9 1.0 1.0 1.1 1.1 1.2 1.3

4.0 4.4 4.5 4.7 4.9 5.2 5.4126.1 137.7 144.1 150.6 157.3 164.4 171.8

1,613.7 1,789.1 1,879.1 1,973.1 2,071.7 2,175.3 2,284.1

1,744.8 1,932.1 2,028.8 2,129.5 2,235.1 2,346.0 2,462.5

0.4 0.5 0.5 0.5 0.6 0.6 0.6

1,699.7 1,699.7 1,699.7 1,699.7 1,274.8 - -

1,700.2 1,700.2 1,700.2 1,700.3 1,275.4 0.6 0.6

44.6 231.9 328.6 429.2 959.7 2,345.4 2,461.9

1,744.3 1,931.6 2,028.3 2,128.9 2,234.5 2,345.4 2,461.9

436.1 482.9 507.1 532.2 558.6 586.4 615.5

1,308.2 1,448.7 1,521.2 1,596.7 1,675.9 1,759.1 1,846.4

130.8 144.9 152.1 159.7 167.6 175.9 184.6

0.4 0.4 0.5 0.5 0.5 0.6 0.6

7.1 7.9 8.3 8.7 9.1 9.6 10.1

0.4 0.5 0.5 0.5 0.6 0.6 0.6

7.2 7.9 8.3 8.7 9.1 9.6 10.1


47/67

31-Mar-26 31-Mar-27

1.3 1.4

5.6 5.9179.6 187.8

2,398.3 2,518.2

2,584.8 2,713.2

0.7 0.7

- -

0.7 0.7

2,584.1 2,712.5

2,584.1 2,712.5

646.0 678.1

1,938.1 2,034.4

193.8 203.4

0.6 0.7

10.6 11.1

0.7 0.7

10.6 11.1


48/67


49/67


4,921.35 7,553.87 9,226.86 10,481.27 11,772.66 12,454.75 13,162.99

784.30 784.30 784.30 784.30 784.30 784.30 784.30

24.94 24.94 24.94 24.94 24.94 - -

267.47 - - - - - -

401.20 - - - - - -

918.43 191.64 198.17 140.46 72.50 75.48 79.22

7,317.70 8,554.76 10,234.28 11,430.98 12,654.41 13,314.53 14,026.50

292.41 - - - - - -

6.24 - - - - - -- 424.93 1,699.72 1,699.72 1,699.72 1,699.72 1,699.72

1,224.57 255.53 264.23 187.28 96.67 100.65 105.62

1,523.22 680.46 1,963.95 1,887.00 1,796.39 1,800.36 1,805.34

- 5,794.48 13,668.78 21,939.12 31,483.09 42,341.11 53,855.28

5,794.48 7,874.30 8,270.33 9,543.98 10,858.02 11,514.17 12,221.16

5,794.48 13,668.78 21,939.12 31,483.09 42,341.11 53,855.28 66,076.44


50/67

31-Mar-24 31-Mar-25 31-Mar-26 31-Mar-27

13,914.48 15,493.73 16,262.00 17,032.63

784.30 - - -

- - - -

- - - -

- - - -

83.17 87.33 91.70 96.28

14,781.96 15,581.07 16,353.70 17,128.91

- - - -

- - - -1,274.79 - - -

110.90 116.44 122.27 128.38

1,385.69 116.44 122.27 128.38

66,076.44 79,472.71 94,937.33 111,168.77

13,396.27 15,464.62 16,231.44 17,000.53

79,472.71 94,937.33 111,168.77 128,169.31


51/67



Balance Sheet Projections

Particulars 31-Mar-14 31-Mar-15 31-Mar-16 31-Mar-17

Sources of Funds

Equity 3,399.44 4,453.35 6,531.40 6,798.87

Reserves & Surplus - - - 4,921.35

Total Net Worth 3,399.44 4,453.35 6,531.40 11,720.23

Long term loans 1,360.40 6,680.03 9,797.11 10,198.31

Cash Credit - - - 918.43

Unsecured Loans

Total 1,360.40 6,680.03 9,797.11 11,116.74

TOTAL 4,759.83 11,133.38 16,328.51 22,836.97

Uses of Funds 31-Mar-14 31-Mar-15 31-Mar-16 31-Mar-17

Gross Block 4,722.42 11,046.08 16,210.03 16,502.44

Accumulated Depreciation - - - 784.30Net Block 4,722.42 11,046.08 16,210.03 15,718.14

Current Assets except cash - - - 1,225.01

Current Liabilities - - - 0.44

Net Current Assets except cash - - - 1,224.57

Cash & bank balance - - - 5,794.48

Prelim. Exp. Not w/o 37.42 87.30 118.48 99.78

TOTAL 4,759.83 11,133.38 16,328.51 22,836.97

Difference - - - -


52/67


6,798.87 6,798.87 6,798.87 6,798.87 6,798.87 6,798.87 6,798.87

12,475.23 21,702.09 32,183.36 43,956.02 56,410.77 69,573.75 83,488.24

19,274.10 28,500.96 38,982.23 50,754.89 63,209.64 76,372.63 90,287.11

9,773.38 8,073.66 6,373.94 4,674.23 2,974.51 1,274.79 -

1,110.07 1,308.24 1,448.70 1,521.20 1,596.69 1,675.90 1,759.08

10,883.45 9,381.90 7,822.65 6,195.43 4,571.20 2,950.69 1,759.08

30,157.55 37,882.87 46,804.88 56,950.32 67,780.84 79,323.32 92,046.19


16,502.44 16,502.44 16,502.44 16,502.44 16,502.44 16,502.44 16,502.44

1,568.60 2,352.90 3,137.20 3,921.50 4,705.80 5,490.10 6,274.4014,933.84 14,149.54 13,365.24 12,580.94 11,796.64 11,012.34 10,228.04

1,480.47 1,744.77 1,932.10 2,028.79 2,129.46 2,235.11 2,346.04

0.37 0.45 0.50 0.52 0.54 0.57 0.60

1,480.09 1,744.32 1,931.60 2,028.27 2,128.92 2,234.54 2,345.44

13,668.78 21,939.12 31,483.09 42,341.11 53,855.28 66,076.44 79,472.71

74.83 49.89 24.94 - - - -

30,157.55 37,882.87 46,804.88 56,950.32 67,780.84 79,323.32 92,046.19

- - - - - - -


53/67

31-Mar-25 31-Mar-26 31-Mar-27

6,798.87 6,798.87 6,798.87

98,981.97 115,243.97 132,276.60

105,780.84 122,042.85 139,075.48

- - -

1,846.41 1,938.11 2,034.40

1,846.41 1,938.11 2,034.40

107,627.26 123,980.96 141,109.87

31-Mar-25 31-Mar-26 31-Mar-27

16,502.44 16,502.44 16,502.44

6,274.40 6,274.40 6,274.4010,228.04 10,228.04 10,228.04

2,462.51 2,584.81 2,713.22

0.63 0.66 0.69

2,461.88 2,584.15 2,712.53

94,937.33 111,168.77 128,169.31

- - -

107,627.26 123,980.96 141,109.87

- - -


54/67

Corporate Bridge AcademyProject Finance of JSW Back to Index

Please Find below Name of sheet to done before submitting Excel File

Disclaimer:You Need to use same template for Assignment 2 and 3

Recommendation Completed

Assignment 3 - 25 Marks

Name of sheet StatusDSCR IRR Ratios Completed


55/67



Project Evaluation

DSCR 31-Mar-14 31-Mar-15 31-Mar-16

PAT - - -

Deprn. - - -

Amortization - - -

Interest - TL - - -

Total - - -

TL Repayment - - -

Interest - TL - - -

Total - - -

DSCR

Average DSCR 6.09

Minimum DSCR 4.12

IRR 31-Mar-14 31-Mar-15 31-Mar-16

PAT - - -

Deprn. - - -

Amortization - - -

Interest - tax adjusted - - -

Inflow - - -

Capex 4,743.68 5,966.19 4,383.77

Outflow 4,743.68 5,966.19 4,383.77

Net Flow (4,743.68) (5,966.19) (4,383.77)

IRR 42.87%

Ratios 31-Mar-14 31-Mar-15 31-Mar-16

Gross Sales - - -

Excise duty - - -

Net sales - - -

Other Income - - -

Total expenses - - -

PBDIT - - -

Depreciation - - -

Amortization - - -


56/67

PBIT - - -

Interest

- Term loan - - -

- Working capital - - -

PBT - - -

Tax - - -

PAT - - -

Cash accruals - - -

Paid up capital 3,399.44 4,453.35 6,531.40

Current ratio #DIV/0! #DIV/0! #DIV/0!

PBDIT/Interest (Times) #DIV/0! #DIV/0! #DIV/0!

PBDIT/TTA(ROCE)% 0.00% 0.00% 0.00%

Net worth 3,399.44 4,453.35 6,531.40

Adjusted TNW (excl. of

revaluation reserve) 3,362.02 4,366.05 6,412.92

TOL/TNW 0.40 1.53 1.53

Inv/NS +Rec./GS (Days)

Operating profit margin (%) #DIV/0! #DIV/0! #DIV/0!

Net profit margin (%) #DIV/0! #DIV/0! #DIV/0!

DSCR - - -

Min. DSCR 4.12Average DSCR 6.09

IRR 42.87%

Breakeven point 0.00%

Cash breakeven point 0.00%

BEP & Cash BEP 31-Mar-14 31-Mar-15 31-Mar-16

Net Sales - - -

Variable Expenses - - -

Contribution - - -

PV Ratio #DIV/0! #DIV/0! #DIV/0!

Fixed Expenses - - -

Fixed Cash Expenses - - -

BEP NA NA NA

BEP in %

Cash BEP - - -

Cash BEP in % NA NA NA

Average BEP (%) 10%

Average Cash BE 7%


57/67


4,921.35 7,553.87 9,226.86 10,481.27 11,772.66 12,454.75 13,162.99 13,914.48

784.30 784.30 784.30 784.30 784.30 784.30 784.30 784.30

24.94 24.94 24.94 24.94 24.94 - - -

811.36 953.53 968.84 867.92 706.45 544.97 383.50 222.03

6,541.96 9,316.65 11,004.95 12,158.43 13,288.35 13,784.02 14,330.79 14,920.81

- 424.93 1,699.72 1,699.72 1,699.72 1,699.72 1,699.72 1,274.79

811.36 953.53 968.84 867.92 706.45 544.97 383.50 222.03

811.36 1,378.46 2,668.56 2,567.64 2,406.16 2,244.69 2,083.22 1,496.81

8.06 6.76 4.12 4.74 5.52 6.14 6.88 9.97


4,921.35 7,553.87 9,226.86 10,481.27 11,772.66 12,454.75 13,162.99 13,914.48

784.30 784.30 784.30 784.30 784.30 784.30 784.30 784.30

24.94 24.94 24.94 24.94 24.94 - - -

623.61 647.31 661.32 594.20 509.40 389.70 272.44 156.92

6,354.21 9,010.42 10,697.43 11,884.72 13,091.30 13,628.74 14,219.73 14,855.70

63.84 - - - - - - -

63.84 - - - - - - -

6,290.37 9,010.42 10,697.43 11,884.72 13,091.30 13,628.74 14,219.73 14,855.70


10152 16389 19365 21469 22549 23677 24861 26104

922 1621 1921 2135 2248 2361 2479 2603

9,229.66 14,767.45 17,444.05 19,333.82 20,300.51 21,315.54 22,381.32 23,500.38

- - - - - - - -

1,114.24 1,766.29 2,017.78 2,202.42 2,306.15 2,409.18 2,516.99 2,630.16

8,115.42 13,001.15 15,426.27 17,131.41 17,994.36 18,906.36 19,864.33 20,870.22

784.30 784.30 784.30 784.30 784.30 784.30 784.30 784.30

24.94 24.94 24.94 24.94 24.94 - - -


58/67

7,306.18 12,191.91 14,617.02 16,322.16 17,185.12 18,122.06 19,080.03 20,085.92

811.36 953.53 968.84 867.92 706.45 544.97 383.50 222.03

91.84 111.01 130.82 144.87 152.12 159.67 167.59 175.91

6,402.98 11,127.37 13,517.36 15,309.37 16,326.55 17,417.42 18,528.94 19,687.99

1,481.62 3,573.50 4,290.50 4,828.10 4,553.89 4,962.67 5,365.95 5,773.50

4,921.35 7,553.87 9,226.86 10,481.27 11,772.66 12,454.75 13,162.99 13,914.48

5,730.60 8,363.12 10,036.11 11,290.51 12,581.90 13,239.05 13,947.29 14,698.78

6,798.87 6,798.87 6,798.87 6,798.87 6,798.87 6,798.87 6,798.87 6,798.87

7.64 13.64 18.10 23.06 29.16 35.05 40.75 46.50

10.00 13.63 15.92 19.74 25.47 34.69 51.80 94.00

35.69% 43.22% 40.78% 36.62% 31.60% 27.89% 25.04% 22.67%

11,720.23 19,274.10 28,500.96 38,982.23 50,754.89 63,209.64 76,372.63 90,287.11

11,620.45 19,199.27 28,451.07 38,957.29 50,754.89 63,209.64 76,372.63 90,287.11

0.96 0.57 0.33 0.20 0.12 0.07 0.04 0.02

88% 88% 88% 89% 89% 89% 89% 89%

53% 51% 53% 54% 58% 58% 59% 59%

8.06 6.76 4.12 4.74 5.52 6.14 6.88 9.97


9,229.66 14,767.45 17,444.05 19,333.82 20,300.51 21,315.54 22,381.32 23,500.38

762.02 1,213.94 1,410.83 1,556.88 1,640.87 1,723.25 1,809.37 1,899.78

8,467.63 13,553.51 16,033.22 17,776.94 18,659.64 19,592.29 20,571.94 21,600.60

91.74% 91.78% 91.91% 91.95% 91.92% 91.92% 91.92% 91.92%

2064.66 2426.14 2515.86 2467.56 2333.09 2174.88 2043.01 1912.62

1,255.41 1,616.89 1,706.62 1,658.32 1,523.85 1,390.58 1,258.71 1,128.32

2,250.46 2,643.44 2,737.24 2,683.67 2,538.26 2,366.17 2,222.70 2,080.83

24% 18% 16% 14% 13% 11% 10% 9%

1,368.39 1,761.71 1,856.79 1,803.55 1,657.85 1,512.88 1,369.41 1,227.55

15% 12% 11% 9% 8% 7% 6% 5%


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31-Mar-25 31-Mar-26 31-Mar-27

15,493.73 16,262.00 17,032.63

- - -

- - -

60.55 (0.00) (0.00)

15,554.29 16,262.00 17,032.63

- - -

60.55 (0.00) (0.00)

60.55 (0.00) (0.00)

31-Mar-25 31-Mar-26 31-Mar-27

15,493.73 16,262.00 17,032.63

- - -

- - -

43.27 (0.00) (0.00)

15,537.01 16,262.00 17,032.63

- - -

- - -

15,537.01 16,262.00 17,032.63

31-Mar-25 31-Mar-26 31-Mar-27

27409 28779 30218

2733 2870 3014

24,675.40 25,909.17 27,204.63

- - -

2,748.99 2,873.76 3,004.77

21,926.41 23,035.41 24,199.86

- - -

- - -


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21,926.41 23,035.41 24,199.86

60.55 (0.00) (0.00)

184.64 193.81 203.44

21,681.22 22,841.60 23,996.42

6,187.48 6,579.59 6,963.79

15,493.73 16,262.00 17,032.63

15,493.73 16,262.00 17,032.63

6,798.87 6,798.87 6,798.87

52.73 58.67 64.31

362.11 - -

20.37% 18.58% 17.15%

105,780.84 122,042.85 139,075.48

105,780.84 122,042.85 139,075.48

0.02 0.02 0.01

89% 89% 89%

63% 63% 63%

- - -

31-Mar-25 31-Mar-26 31-Mar-27

24,675.40 25,909.17 27,204.63

1,994.70 2,094.37 2,199.03

22,680.70 23,814.80 25,005.60

91.92% 91.92% 91.92%

999.48 973.20 1009.18

999.48 973.20 1,009.18

1,087.38 1,058.78 1,097.93

4% 4% 4%

1,087.38 1,058.78 1,097.93

4% 4% 4%


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Your company financial & important ratio information should be included in this t

explained in the word document attached under ratio Analysis

***************************************************************************************

sector being reluctant to invest in the industry, but this sector has shown a

tremendous improvement in the last year.

the oper


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f Growth

inance Ratios

t ratio of the company is very high and is se seen to increase over the years,

shows that the company would be able to pay off all its obligations

of the company is seen to decrease over the period but the ROCE is still very

ore we can say that the company will cover its capital cost and would have a

ating and profitable position. The high ROCE also shows that the company is

g its capital very smatly and also working towards generating shareholders

wealth.

nto consideration the stable recovery of the global economy the Indian Steel industry

the fourth largest producer of crude steel in the world. It has been estimated by the

el Association that the usage of steel around the world will increase by 3.1% i.e. 1,527

nes in 2014, followed by a growth of 3.3 per cent i.e. 1,576 million tonnes. The demand

China is also expected to decelerate in the coming year which puts India in a very good

position.

ds an Investment of $210 billion in order to achieve a steel producing capacity of 300nes per annum from its current capacity of 90 million tonnes p.a. India has emphasized

mportance of investment in infrastructure to boost economic growth. This along with

tive government measures will tremendously boost the industry. There is also a very

able estimation of the demand of steel from the automobile industry. Investors are

to improve in the coming financial year due to the stable economy which would result

ase in dividend payout in the fourth coming years. Other sectors which can improve the

f steel like the construction and manufacturing sector are also showing favorable signs

although this is subjected to inflation other problems.


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ble

************************************************************************

ating profit margin and the net profit margin is also seen to increase which

also shows a good sign


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Years PAT Add Dep Cash Inflow PV Factor @14% DCF

1 2017 4,921.35 784.30 5,705.65 0.877 5,004.96 5,004.96

2 2018 7,553.87 784.30 8,338.17 0.769 6,415.95 11,420.91

3 2019 9,226.86 784.30 10,011.16 0.675 6,757.25 18,178.16

4 2020 10,481.27 784.30 11,265.57 0.592 6,670.12 24,848.285 2021 11,772.66 784.30 12,556.96 0.519 6,521.69 31,369.98

6 2022 12,454.75 784.30 13,239.05 0.456 6,031.53 37,401.51

7 2023 13,162.99 784.30 13,947.29 0.400 5,573.86 42,975.37

8 2024 13,914.48 784.30 14,698.78 0.351 5,152.79 48,128.16

9 2025 15,493.73 - 15,493.73 0.308 4,764.45 52,892.60

10 2026 16,262.00 - 16,262.00 0.270 4,386.58 57,279.18

11 2027 17,032.63 - 17,032.63 0.237 4,030.22 61,309.39

Total DCF 61,309.39

Total Outflow 16,997.00

NPV 44,312.39

2.6070715 260.70715


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Discounted Payback Period PV factor @42% ARR

0.704 4,018.07

0.496 4,135.18 7.78

0.349 3,496.39

0.246 2,770.770.173 2,174.92

0.122 1,614.83

44312.39 7.03 0.086 1,198.04

0.060 889.15

0.043 660.03

0.030 487.85

0.021 359.84

21,805.05

Assignment 2&3_liza Dsouza

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Transcript of Assignment 2&3_liza Dsouza