All figures STEEL LTD. STEEL LTD. STEEL LTD. STEEL LTD. STEEL LTD. STEEL LTD.

STEEL LTD. STEEL LTD. STEEL LTD. STEEL LTD. STEEL LTD. STEEL LTD. STEEL LTD. STEEL LTD. STEEL LTD. STEEL LTD. STEEL LTD. STEEL LTD. STEEL LTD.
in Millions ANNEXURE - I ANNEXURE - IV ANNEXURE X
ANNEXURE - II ANNEXURE - III ESTIMATED SALES ANNEXURE - VII ANNEXURE - VIII ANNEXURE - IXA ANNEXURE - XI ANNEXURE - XII ANNEXURE - XIII
ESTIMATED COST OF THE PROJECT & PROPOSED SOURCES OF FINANCE PROJECTED PROFITABILITY STATEMENT AMOUNT ANNEXURE - VI DIRECT LABOUR REPAIRS & MAINTENANCE DEPRECIATION AS PER COMPANIES ACT( SLM METHOD) COMPUTATION OF INCOME TAX WORKING CAPITAL REQUIREMENTS COMPUTATION OF INTEREST PROJECTED CASH FLOW STATEMENT
PRELIMINARY & PRE-OPERATIVE EXPENSES AMOUNT DEBT SERVICE COVERAGE RATIO ( NET ) Upto end of
AMOUNT At 100% Year 1 (60%) Year 2 (70%) Year 3 & Onwards POWER & FUEL Sl. Particulars No. Rate/ Month Year Cost (%) Year 1 (%) Year 2 (%) Year 3 1 2 3 4 5 6 Interest on Term Loan Construction
A. ESTIMATED COST OF THE PROJECT AMOUNT (80%) No. Month Year 1 (60%) Year 2 (70%) Year 3 & Onwards 1 2 3 4 5 6 Total Period
Two Sponge Power Induction Rolling Capacity Utilisation 60% 70% 80% 80% 80% 80% Rate Qnty. Rs Millions Qnty. Rs Millions Qnty. Rs Millions Qnty. Rs Millions Connected Load : 16.0 MW Rs. Rs. Rs. Building & Civil Building & Spares & Plant & Machinery Preoperative Total Profit before Tax 201 283 368 397 426 457 (80%)
Iron Kiln of Plant Furnace Mill TOTAL i) Interest during Construction Period Per MT in MT in MT in MT in MT Construction 237 1.00 2.37 2.00 4.74 3.00 7.11 Civil Construction Others & Electrical Equip. Expenses w/o Add: Depreciation as per Holding Year Opening Repayment during Closing Interest Cash Inflow from Operation 333.50 379.71 429.85 442.11 455.53 469.55 2,510.24 - 1
Capacity 100 TPD (16 MW ) Units total construction period of 3 years Years 1 2 3 4 5 6 Total Unit Consumption : 115,200,000 1 Managing Director 1 90,000 90,000 1,080,000 Companies Act 164 164 164 164 164 164 Period WCR PBF WCR PBF WCR PBF Balance The Year Balance @ 13.50% SOURCES
Year each) (2 x 12MT ) (8 mm to 32 mm) ( considered for 1.25 years as company 202.50 2 Directors 3 75,000 225,000 2,700,000 Plant & Machinery & 1,259 3.00 37.78 6.00 75.56 9.00 113.34 Less: Depreciation as per Months Interest on Term Loan 158.32 132.55 103.09 73.64 44.18 14.73 526.50
1 0.60 avails term loan late by 6 months) A. Sales 1,524.10 1,778.11 2,032.13 2,032.13 2,032.13 2,032.13 Other Consumption : 96,000 3 Production in charge 4 50,000 200,000 2,400,000 Electrical Installation Cost 237 24 1,235 1,496 Income Tax Act (255) (218) (186) (160) (137) (117) 1 1,200.00 109.09 1,090.91 158.32 Promoters Capital 600.00 -
2 0.70 i ) Land and Site Development 12.00 6.00 6.00 6.00 30.00 4 Production foreman 12 30,000 360,000 4,320,000 40.15 80.30 120.45 Add: Preoperative Expe 36 186 222 222 Sub-Total 111 229 346 402 454 503 (i) Raw Materials 2.40 170.97 128.23 199.46 149.60 227.96 170.97 2 1,090.91 218.18 872.73 132.55 Sub - Total ( A ) 491.82 512.25 532.94 515.74 499.71 484.28 3,036.74
3 0.80 ii) Project Consultancy & Technical viability Report 6.00 B. Costs TMT Bars 30000 82944 2488 49766 1493 58061 1742 66355 1991 Year 1 Year 2 Year 3 5 Electrical Supervisor 4 20,000 80,000 960,000 Add : Contingencies 12 62 74 1,792 Raw Materials( Intermediary) 0.50 70.11 52.58 81.80 61.35 93.48 70.11 3 872.73 218.18 654.55 103.09 Unsecured Loan ( quasi equity) 174.70 -
i) Raw Materials and 913.82 1,009.18 1,151.67 1,139.80 1,139.80 1,139.80 6 Mechanical Supervisor 6 15,000 90,000 1,080,000 18 Non Current B/f Unabsorbed Depreciation - - - - - - 4 654.55 218.18 436.36 73.64 Repayment of Term Loan 109.09 218.18 218.18 218.18 218.18 218.18 1,200.00
ii) Factory Shed, Building, Civil Construction & Factory Roads iii) Insurance during Construction Period 4.50 Consumables Sponge Iron (used in process) 16500 60000 990 36000 594 42000 693 48000 792 Units Consumed 69,177,600 80,707,200 92,236,800 7 Accountants 3 22,500 67,500 810,000 Total 285 24 1,483 1,792 7 Prelim exp C/f Unabsorbed Depreciation - - - - - - (ii) Consumables 1.00 - - - - - - 5 436.36 218.18 218.18 44.18 Term Loan from Bank 1,200.00 -
including Boundary wall, Office and Utility Block and Quarters 75.00 60.00 54.00 48.00 237.00 ii) Labour 21.50 23.65 26.02 26.02 26.02 26.02 Ingots (Used in process ) 21000 86,400 1814 51840 1089 60480 1270 69120 1452 8 Clerks 6 4,500 27,000 324,000 30 Land cost 6 218.18 218.18 - 14.73 Interest on Term Loan 158.32 132.55 103.09 73.64 44.18 14.73 526.50
iv) Establishment during Construction iii) Power 27.00 32.00 37.00 37.00 37.00 37.00 Runners/Risers 15000 3456 52 2074 31 2419 36 2765 41 9 Laboratory incharge 3 10,000 30,000 360,000 Rate of Depreciation 3.34 4.75 10.34 1,846 Check Taxable Income as per IT 111 229 346 402 454 503 (iii) Finished Goods 0.75 58.97 44.23 70.83 53.12 82.70 62.03 Working Capital Finance - 300.00
Period including Travelling Etc. 15.00 iv) Repairs & Maintenance 40.15 80.30 120.45 120.45 120.45 120.45 Power Consumption Cost 262.87 306.69 350.50 10 Operator/Skilled worker 18 9,000 162,000 1,944,000 1,507 1,846 capital cost Term Loan to be repaid in 5 1/2 year after 6 months of moratorium Sub Total ( B ) 267.41 350.73 321.27 291.82 262.36 232.91 1,726.50
iii) Plant & Machinery & Auxilary Equipment including Electricals v) Depreciation 164.00 164.00 164.00 164.00 164.00 164.00 Total Sales excluding Sponge Iron 2540 1524.10 1778.11 2032.13 captive unit and thus not considered 11 Stores in Charge 4 7,500 30,000 360,000 of project Tax Payable as per IT without MAT 33 69 104 121 136 151 (iv) Debtors 1.00 127.01 76.20 148.18 88.91 169.34 101.61 Current Liabilities 2.59
and Installation and Engineering Expenses 270.00 630.00 180.00 155.00 1,235.00 v) Incorporation expenses 0.50 12 Un-Skilled Workers 42 3,600 151,200 1,814,400 Year Depr. WDV Depr. WDV Depr. WDV Depr. WDV (assumed @ 30%) NET D.S.C.R. ( A / B ) 1.84 1.46 1.66 1.77 1.90 2.08 1.76
Total Cost 1,166.47 1,309.14 1,499.14 1,487.27 1,487.27 1,487.27 STEEL LTD. Electricity Duty 13.84 16.14 18.45 13 Peons/other staff 6 3,600 21,600 259,200 Tax Payable as per MAT @ 10% 20 28 37 40 43 46 (v) Working Expenses 0.60 3.83 - 6.02 - 8.23 - Cash Inflow from operation 333.50
228.50 @ Rs 0.20 per unit 14 Security Guard 6 4,000 24,000 288,000 1 9.5 275 1.2 23 153.3 1,330 164.00 1,628 1,628 STEEL LTD.
iv) Quality Control, Essential Spares, Office Equipment, etc. 9.00 6.00 4.80 4.50 24.30 Add: Opening Stock of Finished goods - 58.97 70.83 82.70 82.70 82.70 ANNEXURE - V 13.84 16.14 18.45 2 9.5 266 1.2 22 153.3 1,176 164.00 1,464 Tax Payable for the Year 33 69 104 121 136 151 430.89 301.24 506.29 352.97 581.72 404.71 ANNEXURE - XIV Total Sources (A) 1,974.70 636.09
RAW MATERIALS Total 118 1,558,300 18,699,600 3 9.5 256 1.2 21 153.3 1,023 164.00 1,300 DEBT SERVICE COVERAGE RATIO (GROSS)
v) Preliminary & Preoperative Expenses 228.50 Total Preoperative Expenses 222.0 Less: Closing Stock of finished goods 58.97 70.83 82.70 82.70 82.70 82.70 AMOUNT 4 9.5 247 1.2 20 153.3 870 164.00 1,136 Less Current Liabilities for Exp. 0.30 2.59 - 3.81 - 5.04 - 18.18
A. RAW MATERIALS FUEL Add : 15% towards P.F., Bonus etc. 233,745 2,804,940 5 9.5 237 1.2 19 153.3 716 164.00 972 (Labour, Repairs, Power & Admn.) 428.30 301.24 502.48 352.97 576.68 404.71 109.091 1 2 3 4 5 6 Total
vi) Contingencies ( 5% of ii & iii ) 17.25 34.50 11.70 10.15 73.60 1,599.90 Cost of Goods Sold 1,107.50 1,297.28 1,487.27 1,487.27 1,487.27 1,487.27 At 100% Year 1 (60%) Year 2 (70%) Year 3 & Onwards 6 9.5 228 1.2 17 153.3 563 164.00 808 APPLICATION
1,199.93 (80%) Running hour per day : 2 1,792,045 21,504,540 Bank Finance ( Rounded off ) 300.00 350.00 400.00 Cash Inflow from Operation 333.50 379.71 429.85 442.11 455.53 469.55 2,510.24
vii) Deposits with Electricity Board & Other Non current assets 18.00 C. Gross Profit ( A - B ) 416.59 480.84 544.86 544.86 544.86 544.86 Rate/MT Qnty. Rs Millions Qnty. Rs Millions Qnty. Rs Millions Qnty. Rs Millions No. of working days in year : 330 Fixed Assets 1,821.90 -
in MT in MT in MT in MT Fuel Consumption in Ltrs/day : 900 Interest on Working Capital Finance 40.50 47.25 54.00 Interest on Term Loan & WCF 198.82 179.80 157.09 127.64 98.18 68.73 830.25
viii) Capital Cost of the Project 383.25 736.50 256.50 223.65 1,846.40 D. Administrative, Establishment, 15.00 16.50 18.15 18.60 19.07 19.55 For Sponge Iron Unit Rate of Fuel per Ltr. : 38.00 Year 1 21.50 STEEL LTD. Security Deposit 18.00 -
41,827 Marketing and other Expenses Sized Ore at site 3,750 96,000 360.00 57,600 216.00 67,200 252.00 76,800 288.00 Cost at 100% Capacity : 22.57 Year 2 23.65 WCR : Working Capital Requirements Sub - Total ( A ) 532.32 559.50 586.94 569.74 553.71 538.28 3,340.49
ix) Margin Money for Working Capital 128.30 Year 3 & Onwards 26.02 ANNEXURE - IX B Current Assets - 430.89
E. Interest Coal at site 3,600 108,000 388.80 64,800 233.28 75,600 272.16 86,400 311.04 Year 1 Year 2 Year 3 DEPRECIATION AS PER INCOME TAX ACT ( WDV METHOD ) PBF : Permissible Bank Finance Repayment of Term Loan 109.09 218.18 218.18 218.18 218.18 218.18### 1,200.00
x) Estimated Total Cost of the Project 1,974.70 i. Term Loan 158.32 132.55 103.09 73.64 44.18 14.73 check & Onwards Repayment of Term Loan - 109.09
ii. Working Capital Finance 40.50 47.25 54.00 54.00 54.00 54.00 Dolomite 1,500 1,800 2.70 1,080 1.62 1,260 1.89 1,440 2.16 2.16 Cost of Fuel 13.54 15.80 18.06 It is assumed that the Raw materials will be purchased in cash as per the present prevailing condition Interest on Term Loan & WCF 198.82 179.80 157.09 127.64 98.18 68.73 830.25
B. PROPOSED SOURCES OF FINANCE Preliminary Expenses 6.50 o
F. Preliminary Expenses w/o 1.30 1.30 1.30 1.30 1.30 - Fuel Oil ( Litres ) 38.00 90,000 3.42 54,000.00 2.05 63,000.00 2.39 72,000.00 2.74 2.74 Total Cost of Power & Fuel 27.38 31.94 36.50 Building & Spares & Plant & Machinery Preoperative Total Sub Total ( B ) 307.91 397.98 375.27 345.82 316.36 286.91 2,030.25
i) Share Capital ( including Share Application & Premium) 600.00 For Induction Furnace Units Civil Construction Others & Electrical Equip. Expenses w/o Total Application (B) 1,846.40 539.98
G. Profit/(Loss) before Sponge Iron (used in process) 0 60000 0 36000 0 42000 0 48000 0 GROSS D.S.C.R. ( A / B ) 1.73 1.41 1.56 1.65 1.75 1.88 1.65
ii) Unsecured Loans ( from promoters treated as quasi equity) 174.70 Taxes ( C - D - E -F ) 201.47 283.24 368.32 397.32 426.31 456.59 Increase/(Decrease)in cash
Return Scrap 20500.00 17280.00 354.24 10368.00 212.54 12096.00 247.97 13824.00 283.39 Cost 237 24 1,235 1,496 during the year ( A-B) 128.30 96.11
iii) Term Loan 1,200.00 1.55 H. Taxes 33.28 68.83 103.78 120.52 136.09 151.04 Add: Preoperative Expe 36 - 186 222 222
Pig Iron 21600.00 12096.00 261.27 7257.60 156.76 8467.20 182.89 9676.80 209.02 Add : Contingencies 12 - 62 74 Opening Balance - 128.30
1,974.70 I. Profit after Taxes 168.20 214.41 264.55 276.80 290.23 305.55
Ferro Manganese 40000.00 345.60 13.82 8.29 9.68 11.06 Total 285 24 1,483 1,792 Closing Balance 128.30 224.41
Working Capital Finance 300.00 1.94 J. Cash Inflow from operation 333.50 379.71 429.85 442.11 455.53 469.55 Ferro Silicon 39000.00 172.80 6.74 4.04 4.72 5.39 25,200
Aluminium 90000.00 43.20 3.89 2.33 2.72 3.11 223,949 Rate of Depreciation 10 15 15
Other Stores & Consumables LS 29.86 17.92 20.90 23.89 249,149 20

Year Depr. WDV Depr. WDV Depr. WDV Depr. WDV

1424.74 854.85 997.32 1139.80
Cost of Production for estimate of FG 944 1,133 1,323 1,323 1,323 1,323 1 28 256 4 21 222 1,261 255 1,537 1,537
Add: Closing Stock 58.97 70.83 82.70 2 26 231 3 18 189 1,071 218 1,320
Total Funds Method operating flows 473 506 540 531 524 518 3 23 207 3 15 161 911 186 1,133
Less: Opening Stock - 58.97 70.83 4 21 187 2 13 137 774 160 974
GP Ratio 27.33 27.04 26.81 26.81 26.81 26.81 5 19 168 2 11 116 658 137 837
Cost of Raw material 913.82 1,009.18 1,151.67 6 17 151 2 9 99 559 117 720

Usage/MT of sponge Induction furnace of 12MT per heat and 2Nos

Sized Ore 1.60 89,376 86,400 86,400
Coal 1.80 0.97
Dolomite 0.03
Fuel Oil 1.50
1,683
12,812

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STEEL LTD. STEEL LTD. STEEL LTD. STEEL LTD. STEEL LTD. - STEEL LTD. STEEL LTD. STEEL LTD.

ANNEXURE - XV ANNEXURE - XVI ANNEXURE - XVII ANNEXURE - XVIII SYNOPSIS OF THE PROJECT ANNEXURE - XIX A
PROJECTED BALANCE SHEET RATIO ANALYSIS INTERNAL RATE OF RETURN ( EQUITY BASIS)
Upto end of BREAK EVEN ANALYSIS Sensitivity Analysis SALIENT FINANCIAL INDICATORS 1 2 3 4 5 6
Construction 1 2 3 4 5 6 ( BASED ON YEAR 1 PROJECTION ) RATIO BASIS 1 2 3 4 5 6 1 Name : STEEL LTD. YEAR CASH Increase Net Cash DISCOUNT PRESENT DISCOUNT PRESENT
ASSETS Period INFLOW Term Loan in margin Inflow FACTOR (%) VALUE FACTOR (%) VALUE Particulars Average 4 % adverse Fluctuation in 8 % adverse Fluctuation in a) Paid up Capital 600.00 600.00 600.00 600.00 600.00 600.00
(i) Fixed Assets 1,821.90 1,657.90 1,493.89 1,329.89 1,165.89 1,001.89 837.88 1 2 3 4 5 6 Average i) Gross Profit Ratio (%age) Gross Profit/ 27.33 27.04 26.81 26.81 26.81 26.81 2 Nature : Integrated Sponge, Induction, Rolling Mill operating Repayments of WC 28 29 Year Level VC Sales Vol Sale Price SP & VC VC Sales Vol Sale Price SP & VC b) Net Worth 942.90 1,157.30 1,421.85 1,698.65 1,988.88 2,294.43
2 3 4 5 6 A. Sales 1,524.10 1,778.11 2,032.13 2,032.13 2,032.13 2,032.13 11,430.72 Sales & Power Unit check c) Tangible Net Worth 937.70 1153.40 1419.25 1697.35 1988.88 2294.43
(ii) Security Deposit 18.00 18.00 18.00 18.00 18.00 18.00 18.00 0 774.70 -774.70 1.00 -774.70 1.00 -774.70 (775) Sales 1,905.12 1,905.12 1,828.92 1,828.92 1,828.92 1,905.12 1,752.71 1,752.71 1,752.71 d) Long Term Secured Loans 872.73 654.55 436.36 218.18 0.00 0.00
B. Variable Costs ii) Net Profit Ratio (%age) Net Profit/ 11.04 12.06 13.02 13.62 14.28 15.04 3 Address 1 333.50 109.09 24.18 200.23 0.78 156.43 0.78 155.22 200 Variable Cost 1,278.93 1,330.09 1,227.77 1,278.93 1,330.09 1,381.24 1,176.62 1,278.93 1,381.24 e) Long Term Unsecured Loans 174.70 174.70 174.70 174.70 174.70 174.70
- - - - - (iii) Current Assets 128.30 i) Raw Material 854.85 997.32 1,139.80 1,139.80 1,139.80 1,139.80 6,411.35 Sales Registered Office : Kolkata 2 379.71 218.18 24.20 137.32 0.61 83.82 0.60 82.52 137 Contribution 626.19 575.03 601.14 549.99 498.83 523.88 576.10 473.78 371.47 f) Net Fixed Assets 1657.90 1493.89 1329.89 1165.89 1001.89 837.88
Raw Materials 170.97 199.46 227.96 227.96 227.96 227.96 & Consumables Works : Keonjhar, Orissa 3 429.85 218.18 211.67 0.48 100.93 0.47 98.60 212 Fixed Expenses 270.65 270.65 270.65 270.65 270.65 270.65 270.65 270.65 270.65 g) Capital Work in Progress 0 0 0 0
- - - - - Intermediary Products 70.11 81.80 93.48 93.48 93.48 93.48 ii) Direct Labour 21.50 23.65 26.02 26.02 26.02 26.02 149.24 iii) Return on Owners Capital (%ag PAT/Avg. Capital 19.59 20.42 20.51 17.74 15.74 14.27 4 442.11 218.18 223.92 0.37 83.42 0.36 80.86 224 Break even Sales 823.42 896.67 823.42 900.01 992.31 984.23 823.42 1,001.24 1,277.01 h) Non-Current Assets 18.00 18.00 18.00 18.00 18.00 18.00
Finished Goods 58.97 70.83 82.70 82.70 82.70 82.70 iii) Power 27.00 32.00 37.00 37.00 37.00 37.00 207.00 4 Constitution : Private Limited Company 5 455.53 218.18 237.35 0.29 69.08 0.28 66.44 237 Break even % 43.22 47.07 45.02 49.21 54.26 51.66 46.98 57.12 72.86 i) Inventories 300.05 352.09 404.14 404.14 404.14 404.14
- - - - - Debtors 127.01 148.18 169.34 169.34 169.34 169.34 iv) Repair & Maintenance 40.15 80.30 120.45 120.45 120.45 120.45 602.24 iv) Current Ratio Current Assets/ 2.17 2.45 2.79 3.35 3.93 4.55 6 469.55 218.18 251.37 0.23 57.15 0.22 54.55 1,284 Operating Profit 355.54 304.39 330.50 279.34 228.18 253.23 305.45 203.13 100.82 j) Receivables 127.01 148.18 169.34 169.34 169.34 169.34
Working Exp 3.83 6.02 8.23 8.23 8.23 8.23 v) Interest on W.C.F. 40.50 47.25 54.00 54.00 54.00 54.00 303.75 Current Liabilities Release of WC 176.68 0.23 40.17 0.22 38.34 Income Tax @ 30% for S.A 102.25 91.32 99.15 83.80 68.45 75.97 91.63 60.94 30.25 k) Other Current Assets 228.24 367.78 557.45 781.38 1018.73 1270.10
50.00 50.00 - - - Cash & Bank Bal. 224.41 361.76 549.22 773.15 1,010.49 1,261.86 - 5 Promoter- Directors : Mr R Terminal value of Fixed Assets 855.88 0.23 194.61 0.22 185.73 PAT 253.29 213.07 231.35 195.54 159.73 177.26 213.81 142.19 70.57 l) Total Current Assets 655.30 868.05 1130.94 1354.87 1592.21 1843.58
Total Costs (B) (i to v) 984.00 1,180.52 1,377.26 1,377.26 1,377.26 1,377.26 7,673.58 Ms S & Security Deposits Depreciation 164.00 164.00 164.00 164.00 164.00 164.00 164.00 164.00 164.00 m) Current Liabilities 220.77 221.99 223.22 223.22 223.22 5.04
1.22 1.23 - - - (iv) Preliminary Expenses 6.50 5.20 3.90 2.60 1.30 - - - Mr T 1200.00 48.38 10.91 -12.44 Preliminary Exp 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 n) Bank Borrowings 300.00 350.00 400.00 400.00 400.00 400.00
C. Contribution ( A - B ) 540.10 597.59 654.86 654.86 654.86 654.86 3,757.14 Cash Accrual 418.37 378.16 395.35 360.62 324.81 342.35 378.90 307.28 235.66 o) Net Working Capital 134.53 296.05 507.72 731.64 968.99 1438.54
379.71 429.85 442.11 455.53 469.55 - Per Day Internal Rate of Return 28.47 0.2846 TL Interest 87.75 87.75 87.75 87.75 87.75 87.75 87.75 87.75 87.75 p) Current ratio (With T/L Inst) 1.26 1.52 1.81 2.17 2.55 4.55
Total Assets 1,974.70 2,336.40 2,383.84 2,481.43 2,540.06 2,612.10 2,699.47 D. Fixed Costs - 6 Capacity per annum ( In MT ) : 60,000 Sponge Iron ( 30,000 x 2) 200 STEEL LTD. Total 506.12 465.91 483.10 448.37 412.56 430.10 466.65 395.03 323.41 q) Current ratio (Without T/L Inst) 2.18 2.48 2.83 3.39 3.98 4.61
430.93 481.08 442.11 455.53 469.55 i) Admn. & Selling Expenses 15.00 16.50 18.15 18.60 19.07 19.55 106.87 86,400 TMT Bars (Induction & Rolling Mill) 288 Repayment 200.00 200.00 200.00 200.00 200.00 200.00 200.00 200.00 200.00 r) Debt Equity Ratio ( TOL/TNW) 1.49 1.06 0.75 0.50 0.31 0.18
LIABILITIES ii) Depreciation 164.00 164.00 164.00 164.00 164.00 164.00 984.02 16 MW Power Unit ANNEXURE - XIX B Interest 87.75 87.75 87.75 87.75 87.75 87.75 87.75 87.75 87.75 Debt Equity Ratio (Excluding ST 0.93 0.57 0.31 0.13 0.00 0.00
(i) Capital 600.00 600.00 600.00 600.00 600.00 600.00 600.00 iii) Preliminary Expenses 1.30 1.30 1.30 1.30 1.30 - 6.50 INTERNAL RATE OF RETURN ( TOTAL FUNDS BASIS) Total 287.75 287.75 287.75 287.75 287.75 287.75 287.75 287.75 287.75 s) Gross Sales 1524.10 1778.11 2032.13 2032.13 2032.13 2032.13
iv) Term Loan 158.32 132.55 103.09 73.64 44.18 14.73 526.50 7 Estimated Cost of the Project TOTAL DSCR 1.76 1.62 1.68 1.56 1.43 1.49 1.62 1.37 1.12 t) Net Sales 1524.10 1778.11 2032.13 2032.13 2032.13 2032.13
(ii) Reserves & Surplus - 168.20 382.60 647.15 923.95 1,214.18 1,519.73 - AMOUNT YEAR CASH Other Increase Net Cash DISCOUNT PRESENT DISCOUNT PRESENT u) Operating Profit / Loss(PAT) 168.20 214.41 264.55 276.80 290.23 305.55
Total Fixed Costs 338.62 314.35 286.54 257.54 228.55 198.28 1,623.88 INFLOW Term Loan in margin Inflow FACTOR (%) VALUE FACTOR (%) VALUE v) Other Income 0.00 0.00 0.00 0.00 0.00 0.00
- - - - - (iii) Unsecured Loan 174.70 174.70 174.70 174.70 174.70 174.70 174.70 Land & Development : 30 operating Repayments of WC 17.00 18.00 w) PBDIT & Prelim Exp w/o 564.30 627.04 689.41 688.96 688.50 689.32 ?
E. Break Even Level Civil Construction : 237 NA check x) Depreciation 164.00 164.00 164.00 164.00 164.00 164.00
- - - - - (iv) Term Loan 1,200.00 1,090.91 872.73 654.55 436.36 218.18 - Plant & Machinery And 0 2274.70 -2274.70 1.00 -2274.70 1.00 -2274.70 (2,275) y) Interest 198.82 179.80 157.09 127.64 98.18 68.73
i) In Sales Fixed Cost * Sales 955.55 935.34 889.18 799.19 709.23 615.27 4,940.50 Auxiliary Equipment 1,235 1 472.67 75.40 397.27 0.85 339.55 0.85 336.67 397 z) Tax 33.28 68.83 103.78 120.52 136.09 151.04
75.40 75.43 - - - (v) W.C.F. - 300.00 350.00 400.00 400.00 400.00 400.00 Contribution Quality Control, Essential Spares, Office Equipment : 24 2 505.56 75.43 430.13 0.73 314.22 0.72 308.92 430 aa) PAT 168.20 214.41 264.55 276.80 290.23 305.55
ii) In %age of Operating Preliminary & Preoperative Expenses : 229 3 539.81 539.81 0.62 337.04 0.61 328.55 540 ab) Cash Accruals(excludes Prelim 332.20 378.41 428.55 440.81 454.23 469.55
218.18 218.18 218.18 218.18 218.18 (vi) Current Liabilities 2.59 3.81 5.04 5.04 5.04 5.04 Level of Operation 62.70 52.60 43.76 39.33 34.90 30.28 43.22 Contingencies : 74 4 531.45 531.45 0.53 283.61 0.52 274.12 531 ac) Increase in Net Sales % -- -- -- --
Security Deposit : 18 5 524.26 524.26 0.46 239.12 0.44 229.16 524 ad) % of G.P. to Net Sales 26.26% 26.04% 25.86% 25.83% 25.81% 25.85%
o o o o o Total Liabilities 1,974.70 2,336.40 2,383.84 2,481.43 2,540.06 2,612.10 2,699.47 iii) In %age of Installed Capacity 37.62 31.56 26.25 23.60 20.94 18.17 25.93 6 517.66 517.66 0.39 201.80 0.37 191.76 1,955 ae) PAT to Net Sales % 11.04% 12.06% 13.02% 13.62% 14.28% 15.04%
Total Capital Cost : 1,846 Release of WC 581.72 0.39 226.78 0.37 215.49 af) Interest as % to Net Sales 13.04% 10.11% 7.73% 6.28% 4.83% 3.38%
293.58 293.61 218.18 218.18 218.18 - - - - - - - F. Cash Break Even Level Working Capital Requirement : 128 Terminal value of Fixed Assets 855.88 0.39 333.66 0.37 317.05 ag) ROCE 17.94% 18.59% 18.64% 16.31% 14.59% 13.32%
& Security Deposits ah) Interest Cover (Times) 2.84 3.49 4.39 5.40 7.01 10.03
i) In Sales 489.09 443.48 376.23 286.23 196.27 106.35 1,926.96 Estimated Cost of the Project : 1,975 150.83 1.08 -73.00 ai) Fixed Assets to Secured Term Lia 1.90 2.28 3.05 5.34 #DIV/0! #DIV/0!
137.35 187.47 223.92 237.35 251.37 aj) Rate of Dividend -- -- -- --
ii) In %age of Operating 32.09 24.94 18.51 14.09 9.66 5.23 16.86 8 Proposed Sources of Finance Internal Rate of Return 17.01 0.1701
224.41 361.76 549.22 773.15 1,010.49 Level of Operation
Promoters Capital including unsecured loans : 775 Pay Back Period of Promoters Funds Funding of Current Assets
361.76 549.22 773.15 1,010.49 1,261.86 iii) In %age of Installed Capacity 19.25 14.96 11.11 8.45 5.80 3.14 10.11 Term Loan : 1,200 Cash Out flows Cumulative Cumulative Pay Back Period
Cash In Flows Cash Flows NWC to TCA 20.53% 34.11% 44.89% 54.00% 60.86% 78.03%
Total Sources : 1,975 774.70 BB to TCA 45.78% 40.32% 35.37% 29.52% 25.12% 21.70%
1 200.23 200.23 OCL to TCA 33.69% 25.57% 19.74% 16.48% 14.02% 0.27%
Working Capital Finance 300 2 137.32 337.56 Total 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
3 211.67 549.22
9 Break Even Level 4 223.92 773.15 4.01
%age of installed capacity : 30 5 237.35 1010.49 Assessment of Working Capital Requirements
10 Cash Break Even Level 6 176.68 1187.17 Sales (Gross) 1524.10 1778.11 2032.13 2032.13 2032.13 2032.13
%age of installed capacity : 11 Sales (Net) 1524.10 1778.11 2032.13 2032.13 2032.13 2032.13
11 Average G.P. Ratio : 26.92 Cost of Production 1002.47 1145.14 1335.14 1323.26 1323.26 1323.26
12 Average N.P. Ratio : 13.30 Cost of Sales (including Deprecia 1107.50 1297.28 1487.27 1487.27 1487.27 1487.27
13 Net Debt Service Coverage Ratio(Avg) : 1.76 Raw Material Consumption 913.82 1009.18 1151.67 1139.80 1139.80 1139.80
14 Gross Debt Service Coverage Ratio(Avg) : 1.65 % of Cost of Production to Sales 65.77% 64.40% 65.70% 65.12% 65.12% 65.12%
15 Debt Equity Ratio : 1.55 :1 Cost of Sales / Sales 72.67% 72.96% 73.19% 73.19% 73.19% 73.19%
16 Power Requirement ( in MW ) : 16.0 MW % of Raw Materials Consumption 91.16% 88.13% 86.26% 86.14% 86.14% 86.14%
to Cost of Production
17 Employment : 136

18 Repayment of Term Loan : Term Loan to be repaid after moratorium period of Level of Holding (Months)
six months from expected commercial production Raw Materials 170.97 199.46 227.96 227.96 227.96 227.96
in 66 monthly instalments of 18.18 millions each Months 2.25 2.37 2.38 2.40 2.40 2.40
Consumables, Spares & Stores 0.00 0.00 0.00 0.00
In Millions Months - - - -
19 Primary Security : Fixed Assets : 1,846.40 WIP 0.00 0.00 0.00 0.00
Stock 300.05 Months - - - -
Debtors 127.01 FG 58.97 70.83 82.70 82.70 82.70 82.70
Months 0.64 0.66 0.67 0.67 0.67 0.67
20 Collateral Security : -- Equitable mortgage of land owned by Mr R Receivables 127.01 148.18 169.34 169.34 169.34 169.34
( Distress sale value 36 millions) Months 1.00 1.00 1.00 1.00 1.00 1.00
OCA 228.25 367.78 557.46 781.38 1018.74 1270.10
--Equitable mortgage of land owned by Ms S Sundry Creditors 3 4 5 5 5 5
Distress sale value 18 millions) OCL Including TL instalment 218.18 218.18 218.18 218.18 218.18 0.00

--Equitable mortgage of land owned by Mr A

( Distress sale value 24 millions ) Net Worth
Millions Computation of Working Capital
Current Assets (Total) 655.30 868.05 1130.94 1354.87 1592.21 1843.58
Directors/Guarantors Raw Materials 170.97 199.46 227.96 227.96 227.96 227.96
21 Guarantors Mr R 240.00 Consumables, Spares & Stores 0.00 0.00 0.00 0.00
Ms S 210.00 WIP 0.00 0.00 0.00 0.00
Mr T 180.00 FG 58.97 70.83 82.70 82.70 82.70 82.70
Mr A Receivables 127.01 148.18 169.34 169.34 169.34 169.34
PA ( Guarantor) 36.00 Advance to Suppliers 0.00 0.00 0.00 0.00
Cash & Bank Balance 224.41 361.76 549.22 773.15 1010.49 1261.86
OCA 3.83 6.02 8.23 8.23 8.23 8.23
Total 666.00 TCA 585.19 786.25 1037.46 1261.39 1498.73 1750.10
Sundry Creditors 2.59 3.81 5.04 5.04 5.04 5.04
OCL 218.18 218.18 218.18 218.18 218.18 0.00
Working Capital Gap 364.42 564.26 814.24 1038.16 1275.51 1745.06

-- Computation of Permissible Bank Finance

-- -- -- -- 1 Working Capital Gap 364.42 564.26 814.24 1038.16 1275.51 1745.06
-- 2 Minimum Stipulated NWC 91.10 141.06 203.56 259.54 318.88 436.27
-- -- -- -- 3 Actual / Projected NWC 134.53 296.05 507.72 731.64 968.99 1438.54
4 Item 1 minus Item 2 273.31 423.19 610.68 778.62 956.63 1308.80
5 Item 1 minus Item 3 229.89 268.21 306.52 306.52 306.52 306.52
6 PBF (item 4 or 5 w.e. is lower) 229.89 268.21 306.52 306.52 306.52 306.52

6 6 6 6 6 6
AMOUNT
--

--

--

--

-
2
-
1

-
###

--

###

--
--

--

-
-
--

--

--

###

###

###

#DIV/0!
 ASSESSMENT OF WORKING CAPITAL REQUIREMENTS
FORM II - OPERATING STATEMENT

Name: STEEL LTD.

Rs' in Millions
Next Year Next Year Next Year Next Year Next Year Next Year
Projections Projections Projections Projections Projections Projections
Year Ended/Ending on March 31 1 2 3 4 5 6
No.of months 12 12 12 12 12 12

Capacity Utilisation 60% 70% 80% 80% 80% 80%

1. Gross Sales

i. Domestic Sales 1524.10 1778.11 2032.13 2032.13 2032.13 2032.13

ii. Export Sales

Total 1524.10 1778.11 2032.13 2032.13 2032.13 2032.13

2. Less Excise Duty

3. Net Sales (1 - 2) 1524.10 1778.11 2032.13 2032.13 2032.13 2032.13

4. % age rise (+) or fall (-) in net sales
as compared to previous year (annualised) N/A 17% 14% 0% 0% 0%

5. Cost of Sales
i. Raw materials (including stores and
other items used in the process of

manufacture) 913.82 1009.18 1151.67 1139.80 1139.80 1139.80

a. Imported

b. Indigenous 913.82 1009.18 1151.67 1139.80 1139.80 1139.80

ii. Other Spares

a. Imported
b. Indigenous 0.00 0.00 0.00 0.00 0.00 0.00

iii. Power and Fuel 27.00 32.00 37.00 37.00 37.00 37.00

iv. Direct Labour (Factory wages & salaries) 21.50 23.65 26.02 26.02 26.02 26.02

v. Other manufacturing expenses 40.15 80.30 120.45 120.45 120.45 120.45

vi. Depreciation 164.00 164.00 164.00 164.00 164.00 164.00

vii. Sub-total (i to vi) 1166.47 1309.14 1499.14 1487.27 1487.27 1487.27

viii. Add: Opening Stock-in-process 0.00 0.00 0.00 0.00 0.00 0.00

Sub-total (vii + viii) 1166.47 1309.14 1499.14 1487.27 1487.27 1487.27

ix. Deduct: Closing Stock-in-process 0.00

x. Cost of Production 1166.47 1309.14 1499.14 1487.27 1487.27 1487.27

xi. Add: Opening Stock of finished goods 0.00 58.97 70.83 82.70 82.70 82.70
Sub-total (x + xi) 1166.47 1368.11 1569.97 1569.97 1569.97 1569.97

xii. Deduct: Closing Stock of finished goods 58.97 70.83 82.70 82.70 82.70 82.70

xiii. Sub-total (Total Cost of Sales) 1107.50 1297.28 1487.27 1487.27 1487.27 1487.27

6. Selling, general and administrative expenses 15.00 16.50 18.15 18.60 19.07 19.55

7. Sub-total (5 + 6) 1122.50 1313.78 1505.42 1505.87 1506.33 1506.81

 8. Operating Profit before Interest (3 - 7) 401.59 464.34 526.71 526.26 525.79 525.32
9. Interest 198.82 179.80 157.09 127.64 98.18 68.73

10. Operating Profit after Interest (8 - 9) 202.77 284.54 369.62 398.62 427.61 456.59

11. i. Add: Other non-operating Income

a. Miscellaneous Income 0.00 0.00 0.00 0.00 0.00 0.00

b.

c. 0.00 0.00 0.00 0.00 0.00 0.00

d.

Sub-total (Income) 0.00 0.00 0.00 0.00 0.00 0.00

ii. Deduct: Other non-operating expenses

a. Miscellaneous Expenditure 1.30 1.30 1.30 1.30 1.30 0.00

b.

c.
d.

Sub-total (Expenses) 1.30 1.30 1.30 1.30 1.30 0.00

iii. Net of other non-operating income /

expenses [net of 11(i) & 11(ii)] -1.30 -1.30 -1.30 -1.30 -1.30 0.00

12. Profit before tax/loss [10 + 11(iii)] 201.47 283.24 368.32 397.32 426.31 456.59

13. Provision for taxes 33.28 68.83 103.78 120.52 136.09 151.04
14. Net Profit / Loss (12 -13) 168.20 214.41 264.55 276.80 290.23 305.55
15. a. Equity dividend paid-amount

(Already paid + B.S. provision) 0.00 0.00 0.00 0.00

b. Dividend Rate (% age) 0.00 0.00 0.00 0.00 0.00 0.00

16. Retained Profit (14 - 15) 168.20 214.41 264.55 276.80 290.23 305.55
17. Retained Profit / Net Profit (% age) 100% 100% 100% 100% 100% 100%
 FORM III - ANALYSIS OF BALANCE SHEET
LIABILITIES

Name: STEEL LTD.

Rs' in Millions
Next Year Next Year Next Year Next Year Next Year Next Year
Estimates Projections Projections Projections Projections Projections
Year Ended/Ending on March 31 1 2 3 4 5 6
No.of months 12 12 12 12 12 12

CURRENT LIABILITIES

1. Short-term borrowing from banks (including

bills purchased, discounted & excess
borrowing placed on repayment basis)

i. From applicant banks 300.00 350.00 400.00 400.00 400.00 400.00

ii. From other banks 0.00

iii. (of which BP & BD)

Sub-total [i + ii] (A) 300.00 350.00 400.00 400.00 400.00 400.00

2. Short term borrowings from others 0.00 0.00 0.00 0.00 0.00 0.00

3. Sundry Creditors (Trade)

4. Advance payments from customers /

deposits from dealers 0.00 0.00 0.00 0.00

5. Provision for taxation

6. Dividend payable 0.00 0.00 0.00 0.00 0.00 0.00

7. Other statutory liabilities (due within 1 year) 0.00 0.00 0.00 0.00 0.00 0.00

8. Deposits / instalments of term loans /

DPGs / debentures etc. (due within 1 year) 218.18 218.18 218.18 218.18 218.18 0.00

9. Other current liabilities & provisions

(due within 1 year) - specify major items 2.59 3.81 5.04 5.04 5.04 5.04

a. Outstanding monthly expense 0.00

b. Sundry creditors Trade & Expenses 2.59 3.81 5.04 5.04 5.04 5.04

c. Unsecured Short Term Loans/Deposits

d. Creditors for capital goods

Sub total [2 to 9] (B) 220.77 221.99 223.22 223.22 223.22 5.04

10. Total current liabilities [A + B] 520.77 571.99 623.22 623.22 623.22 405.04

TERM LIABILITIES

11. Debentures (not maturing within 1 year)

12. Preference Shares (redeemable after 1 year)

13. Term loans (excluding instalments

payable within 1 year) 872.73 654.55 436.36 218.18 0.00 0.00
14. Deferred Payment Credits (excluding
instalments due within 1 year) 0.00 0.00 0.00

15. Term deposits (repayable after 1 year) 0.00

16. Other term liabilities 0.00 0.00 0.00 0.00 0.00 0.00
17. Total Term Liabilities [11 to 16] 872.73 654.55 436.36 218.18 0.00 0.00

18. Total Outside Liabilities [10 + 17] 1393.50 1226.54 1059.59 841.40 623.22 405.04
 Year Ended/Ending on March 31 1 2 3 4 5 6

NET WORTH
19. Ordinary Share Capital 600.00 600.00 600.00 600.00 600.00 600.00

20. General Reserve

21. Revaluation Reserve 0.00 0.00 0.00

22. Other Reserves (excluding Provisions)

23. Surplus (+) or deficit (-) in Profit & Loss a/c 168.20 382.60 647.15 923.95 1214.18 1519.73

23. a. Others

Unsecured loans 174.70 174.70 174.70 174.70 174.70 174.70

Quasi Equity Loan from Promoters

24. Net Worth 942.90 1157.30 1421.85 1698.65 1988.88 2294.43

25. TOTAL LIABILITIES [18 + 24] 2336.40 2383.84 2481.43 2540.06 2612.10 2699.47

FORM III - ANALYSIS OF BALANCE SHEET (Continued)

ASSETS

Name: STEEL LTD.

0.00 Rs' in Millio 0.00

Next Year Next Year Next Year Next Year Next Year Next Year
Projections Projections Projections Projections Projections Projections
Year 1.00 2.00 3.00 4.00 5.00 6.00
No.of months 12.00 12.00 12.00 12.00 12.00 12.00
CURRENT ASSETS
26. Cash and Bank Balances 224.41 361.76 549.22 773.15 1010.49 1261.86
27. Investments (other than long term)
i. Govt. and other trustee securities 0.00
ii. Fixed Deposits with banks
28. i. Receivables other than deferred &
exports (incldg. bills purchased and
discounted by banks) 127.01 148.18 169.34 169.34 169.34 169.34
ii. Export receivables (incldg. bills
purchased/discounted by banks)
29. Instalments of deferred receivables
(due within 1 year) 0.00 0.00
30. Inventory: 300.05 352.09 404.14 404.14 404.14 404.14
i. Raw materials (including stores and
other items used in the process of
manufacture) 170.97 199.46 227.96 227.96 227.96 227.96
a. Imported
b. Indigenous 170.97 199.46 227.96 227.96 227.96 227.96
ii. Stocks-in-process 70.11 81.80 93.48 93.48 93.48 93.48
iii. Finished goods 58.97 70.83 82.70 82.70 82.70 82.70
iv. Other consumable spares 0.00 0.00 0.00 0.00 0.00 0.00
a. Imported
b. Indigenous
31. Advances to suppliers of raw materials
and stores/spares 0.00 0.00 0.00 0.00
32. Advance payment of taxes (net of provisions) 0.00 0.00 0.00 0.00
33. Other current assets (specify major items) 3.83 6.02 8.23 8.23 8.23 8.23
 Year Ended/Ending on March 31 1 2 3 4 5 6
a. Prepaid Expenses & Other Curr. Assets
b. Deposit 0.00 0.00 0.00 0.00
c. Other Advances 3.83 6.02 8.23 8.23 8.23 8.23
d. 0.00
34. Total Current Assets (26 to 33) 655.30 868.05 1130.94 1354.87 1592.21 1843.58

FIXED ASSETS
35 Gross Block (land, building, machinery,
work-in-progress) 1821.90 1821.90 1821.90 1821.90 1821.90 1821.90
36 Depreciation to date 164.00 328.01 492.01 656.01 820.01 984.02
37 Net Block (35 - 36) 1657.90 1493.89 1329.89 1165.89 1001.89 837.88

OTHER NON-CURRENT ASSETS

38 Investments/book debts/advances/deposits
which are not current assets 18.00 18.00 18.00 18.00 18.00 18.00
i. a. Investments in subsidiary
companies / affiliates
b. Others 0.00 0.00 0.00 0.00 0.00 0.00
ii. Advances to suppliers of capital goods
and contractors 0.00 0.00 0.00 0.00 0.00
iii. Deferred receivables (maturity
exceeding 1 year) 0.00 0.00 0.00
iv. Others 18.00 18.00 18.00 18.00 18.00 18.00
a. Other Miscellaneous Assets
b. Security Dep.with Govt./for Utilities
c. Others 18.00 18.00 18.00 18.00 18.00 18.00
d.
39 Non-consumable stores and spares
40 Other non-current assets including
dues from directors
41 Total Other Non-current Assets (38 to 40) 18.00 18.00 18.00 18.00 18.00 18.00

42 Intangible Assets (patents, good will,

prelim.expenses, bad / doubtful debts not 5.20 3.90 2.60 1.30 0.00 0.00
provided for, etc.
43 Total Assets (34+37+41+42) 2336.40 2383.84 2481.43 2540.06 2612.10 2699.47
44 Tangible Net Worth (24 - 42) 937.70 1153.40 1419.25 1697.35 1988.88 2294.43
45 Net Working Capital (34 - 10) 134.53 296.05 507.72 731.64 968.99 1438.54
Rounding off difference 0.00 0.00 0.00 0.00 0.00 0.00
46 Current Ratio (34 / 10) 1.26 1.52 1.81 2.17 2.55 4.55
47 Total OUTSIDE Liabilities / Tangible
Net Worth (18 / 44) 1.49 1.06 0.75 0.50 0.31 0.18
48 Total TERM Liabilities / Tangible
Net Worth (17 / 44) 0.93 0.57 0.31 0.13

ADDITIONAL INFORMATION 0.00 0.00 0.00 0.00 0.00 0.00

A. Arrears of depreciation N/A N/A N/A N/A N/A N/A
B. Contingent Liabilities:
i. Arrears of cumulative dividends N/A N/A N/A N/A N/A N/A
ii. Gratuity liability not provided for N/A N/A N/A N/A N/A N/A
iii. Disputed excise / customs /
tax liabilities N/A N/A N/A N/A N/A N/A
iv. Other liabilities not provided for N/A N/A N/A N/A N/A N/A
 FORM IV
COMPARATIVE STATEMENT OF CURRENT ASSETS AND CURRENT LIABILITIES

Name: STEEL LTD.

0 Rs' in Millions
Next Year Next Year Next Year Next Year Next Year Next Year
Projections Projections Projections Projections Projections Projections
Year Ended/Ending on March 31 1 2 3 4 5 6

A. CURRENT ASSETS
1. Raw materials (incl. stores & other items
used in the process of manufacture)
a. Imported 0.0 0.0 0.0 0.0 0.0 0.0
Month's Consumption
b. Indigenous 170.97 199.46 227.96 227.96 227.96 227.96
Month's Consumption 2.25 2.37 2.38 2.40 2.40 2.40
2. Other Consumable spares, excluding
those included in 1 above
a. Imported 0.00 0.00 0.00 0.00 0.00 0.00
Month's Consumption
b. Indigenous 0.00 0.00 0.00 0.00 0.00 0.00
Month's Consumption
3. Stock-in-process 70.11 81.80 93.48 93.48 93.48 93.48
Month's cost of production 0.72 0.75 0.75 0.75 0.75 0.75
4. Finished goods 58.97 70.83 82.70 82.70 82.70 82.70
Month's cost of sales 0.64 0.66 0.67 0.67 0.67 0.67
5. Receivables other than export & deferred
receivables (incl. bills purchased &
discounted by bankers) 127.01 148.18 169.34 169.34 169.34 169.34
Month's domestic sales: excluding
deferred payment sales 1.00 1.00 1.00 1.00 1.00 1.00
6. Export receivables (incl. bills purchased
and discounted) 0.00 0.00 0.00 0.00 0.00 0.00
Month's export sales
7. Advances to suppliers of raw materials &
stores / spares, consumables 0.00 0.00 0.00 0.00 0.00 0.00
8. Other current assets incl. cash & bank
balances & deferred receivables due
within one year 228.25 367.78 557.46 781.38 1018.74 1270.10
Cash and Bank Balances 224.41 361.76 549.22 773.15 1010.49 1261.86
Investments (other than long term):
i. Govt. and other trustee securities 0.00 0.00 0.00 0.00 0.00 0.00
ii. Fixed Deposits with banks 0.00 0.00 0.00 0.00 0.00 0.00
Instalments of deferred receivables
(due within 1 year) 0.00 0.00 0.00 0.00 0.00 0.00
Advance payment of taxes 0.00 0.00 0.00 0.00 0.00 0.00
Other current assets 3.84 6.02 8.24 8.23 8.24 8.23
9. Total Current Assets 655.31 868.05 1130.95 1354.87 1592.22 1843.58
(To agree with item 34 in Form III)
FORM IV
COMPARATIVE STATEMENT OF CURRENT ASSETS AND CURRENT LIABILITIES

Name: STEEL LTD.

0.00 Rs' in Millions

Current Yr. Next Year Next Year Next Year Next Year Next Year
Estimates Projections Projections Projections Projections Projections
Year 1.00 2.00 3.00 4.00 5.00 6.00
B. CURRENT LIABILITIES
(Other than bank borrowings for working capital)

10. Creditors for purchase of raw materials,

stores & consumable spares 0.00 0.00 0.00 0.00 0.00 0.00
Month's purchases
11. Advances from customers 0.00 0.00 0.00 0.00 0.00 0.00
12. Statutory liabilities 0.00 0.00 0.00 0.00 0.00 0.00
13 Other current liabilities: 220.77 221.99 223.22 223.22 223.22 5.04
Short term borrowings from others 0.00 0.00 0.00 0.00 0.00 0.00
Provision for taxation 0.00 0.00 0.00 0.00 0.00 0.00
Dividend payable 0.00 0.00 0.00 0.00 0.00 0.00
Deposits / instalments of term loans / DPGs
/ debentures etc. (due within 1 year) 218.18 218.18 218.18 218.18 218.18 0.00
Other current liabilities & provisions
(due within 1 year) 2.59 3.81 5.04 5.04 5.04 5.04
14. Total (To agree with total B of Form-III) 220.77 221.99 223.22 223.22 223.22 5.04
 FORM V
COMPUTATION OF MAXIMUM PERMISSIBLE BANK FINANCE FOR WORKING CAPITAL

Name: STEEL LTD.

0 Rs' in Millions
Next Year Next Year Next Year Next Year Next Year Next Year
First Method of Lending Projections Projections Projections Projections Projections Projections
Year Ended/Ending on March 31 1 2 3 4 5 6

1. Total Current Assets (Form-IV-9) 655.30 868.04 1130.94 1354.87 1592.21 1843.58
2. Other Current Liabilities (other than
bank borrowings (Form-IV-14) 220.77 221.99 223.22 223.22 223.22 5.04
3. Working Capital Gap (WCG) (1-2) 434.53 646.05 907.72 1131.65 1368.99 1838.54
4. Min. stipulated net working capital:
(25% of WCG excluding export receivables) 108.63 161.51 226.93 282.91 342.25 459.64
5. Actual / Projected net working capital
(Form-III-45) 134.53 296.05 507.72 731.64 968.99 1438.54
6. Item-3 minus Item-4 325.90 484.54 680.79 848.74 1026.74 1378.91
7. Item-3 minus Item-5 300.00 350.00 400.00 400.01 400.00 400.00
8. Max. permissible bank finance
(item-6 or 7, whichever is lower) 300.00 350.00 400.00 400.01 400.00 400.00
9. Excess borrowings representing
shortfall in NWC (4 - 5)

Second Method of Lending

1. Total Current Assets (Form-IV-9) 655.30 868.04 1130.94 1354.87 1592.21 1843.58
2. Other Current Liabilities (other than
bank borrowings (Form-IV-14) 220.77 221.99 223.22 223.22 223.22 5.04
3. Working Capital Gap (WCG) (1-2) 434.53 646.05 907.72 1131.65 1368.99 1838.54
4. Min. stipulated net working capital:
(25% of total Current Assets excluding
export receivables) 163.83 217.01 282.74 338.72 398.06 460.90
5. Actual / Projected net working capital
(Form-III-45) 134.53 296.05 507.72 731.64 968.99 1438.54
6. Item-3 minus Item-4 270.70 429.04 624.98 792.93 970.94 1377.65
7. Item-3 minus Item-5 300.00 350.00 400.00 400.01 400.00 400.00
8. Max. permissible bank finance
(item-6 or 7, whichever is lower) 270.70 350.00 400.00 400.01 400.00 400.00
9. Excess borrowings representing
shortfall in NWC (4 - 5) 29.30
 FORM VI
FUNDS FLOW STATEMENT

Name: STEEL LTD.

0 Rs' in Millions
Next Year Next Year Next Year Next Year Next Year
Projections Projections Projections Projections Projections
Year Ended/Ending on March 31 2 3 4 5 6

1. SOURCES

a. Net Profit 214.41 264.55 276.80 290.23 305.55

b. Depreciation 164.00 164.00 164.00 164.00 164.00

c. Increase in Capital 0.00 0.00 0.00 0.00 0.00

d. Increase in Term Liabilities

(including Public Deposits) 0.00

e. Decrease in

i. Fixed Assets

ii. Other non-current Assets

f. Others 1.30 1.30 1.30 1.30 0.00

g. TOTAL 379.71 429.85 442.11 455.53 469.55

2. USES

a. Net loss

b. Decrease in Term Liabilities

(including Public Deposits) 218.18 218.18 218.18 218.18

c. Increase in

i. Fixed Assets 0.00 0.00 0.00 0.00 0.00

ii. Other non-current Assets 0.00 0.00 0.00 0.00 0.00

d. Dividend Payments 0.00 0.00 0.00 0.00 0.00

e. Others

f. TOTAL 218.18 218.18 218.18 218.18 0.00

3. Long Term Surplus (+) / Deficit (-) [1-2] 161.53 211.67 223.92 237.35 469.55

4. Increase/decrease in current assets

* (as per details given below) 212.75 262.90 223.92 237.35 251.37

5. Increase/decrease in current liabilities

other than bank borrowings 1.22 1.23 0.00 0.00 -218.18

6. Increase/decrease in working capital gap 211.52 261.67 223.91 237.36 469.54

7. Net Surplus / Deficit (-) [3-6] -49.99 -50.00 0.01 -0.01 0.01

8. Increase/decrease in bank borrowings 50.00 50.00 0.00 0.00 0.00

9. Increase/decrease in NET SALES 254.02 254.02 0.00 0.00 0.00

* Break up of item-4

i. Increase/decrease in Raw Materials 199.46 56.99 28.49 0.00 0.00

ii. Increase/decrease in Stocks-in-Process 81.80 23.37 11.69 0.00 0.00

iii. Increase/decrease in Finished Goods 70.83 23.74 11.87 0.00 0.00

iv. Increase/decrease in Receivables

a) Domestic 21.17 21.17 0.00 0.00 0.00

b) Export 0.00 0.00 0.00 0.00 0.00

v. Increase/decrease in Stores & Spares 0.00 0.00 0.00 0.00 0.00

vi. Increase/decrease in other current assets -160.51 137.63 171.87 237.35 251.37
TOTAL 212.75 262.90 223.92 237.35 251.37
STEEL LTD. 0 Rs' in Millions
Sr. For year ended / ending March 31, 1 2 3 4 5 6
No. Projections Projections Projections Projections Projections Projections
1 Total Operating Income(TOI) 1524.10 1778.11 2032.13 2032.13 2032.13 2032.13
2 EBIDTA 565.60 628.34 690.71 690.26 689.80 689.32
3 E B I D T A/ TOI (%) 0.37 0.35 0.34 0.34 0.34 0.34
4 Interest 198.82 179.80 157.09 127.64 98.18 68.73
5 Depreciation 164.00 164.00 164.00 164.00 164.00 164.00
6 Operating Profit after Dep.& Int. 202.77 284.54 369.62 398.62 427.61 456.59
7 Non Operating Income/Exps. -1.30 -1.30 -1.30 -1.30 -1.30 0.00
8 PBT 201.47 283.24 368.32 397.32 426.31 456.59
9 PAT 168.20 214.41 264.55 276.80 290.23 305.55
10 PAT/ TOI (%) 11.04% 12.06% 13.02% 13.62% 14.28% 15.04%
11 Net Cash Accruals (NCA) 333.50 379.71 429.85 442.11 455.53 469.55
12 Net Fixed Assets 1657.90 1493.89 1329.89 1165.89 1001.89 837.88
13 Tangible Networth (TNW) 937.70 1153.40 1419.25 1697.35 1988.88 2294.43
14 Exposure in Group Co./Sub.
- Group Invetsments 0.00 0.00 0.00 0.00 0.00 0.00
- Loans and Advances 0.00 0.00 0.00 0.00 0.00 0.00
15 Adjusted T N W (ATNW) 937.70 1153.40 1419.25 1697.35 1988.88 2294.43
16 Long Term Debt (LTD) 872.73 654.55 436.36 218.18 0.00 0.00
17 Short Term Debt (STD) 0.00 218.18 218.18 218.18 218.18 218.18
18 Working Cap. Bank Finance 300.00 350.00 400.00 400.00 400.00 400.00
19 Total Debt 1172.73 1222.73 1054.55 836.36 618.18 618.18
20 Total Debt/ TNW 1.25 1.06 0.74 0.49 0.31 0.27
21 LTD/TNW 0.93 0.57 0.31 0.13 0.00 0.00
22 TOL/TNW 1.49 1.06 0.75 0.50 0.31 0.18
23 TOL/ATNW 1.49 1.06 0.75 0.50 0.31 0.18
24 Total Current Assets 655.30 868.05 1130.94 1354.87 1592.21 1843.58
25 Total Current Liabilities 520.77 571.99 623.22 623.22 623.22 405.04
26 Net Working Capital 134.53 296.05 507.72 731.64 968.99 1438.54
27 Current Ratio 1.26 1.52 1.81 2.17 2.55 4.55
28 R O C E (%) 19.03% 19.54% 21.29% 20.77% 20.17% 18.04%
29 DSCR 1.28 1.41 1.56 1.65 1.75 7.83
30 Interest Coverage Ratio 2.84 3.49 4.40 5.41 7.03 10.03
31 Total Debt/Net Cash Accrual 3.52 3.22 2.45 1.89 1.36 1.32

Fund Flow Analysis

Financial Year 1 2 3 4 5 6
Long Term Sources 0.00 379.71 429.85 442.11 455.53 469.55
Long Term uses 0.00 218.18 218.18 218.18 218.18 0.00
Surplus/Deficit 0.00 161.53 211.67 223.92 237.35 469.55
Surplus/Incremental build up of current asset 0.00 0.76 0.81 1.00 1.00 1.87

Pattern of TCA Funding

Year ended / Ending March 31 1 2 3 4 5 6

Sundry Creditors 0.00 0.00 0.00 0.00 0.00 0.00

Other Current Liabilities 0.34 0.26 0.20 0.16 0.14 0.00
Bank Borrowings 0.46 0.40 0.35 0.30 0.25 0.22
Long Term funds 0.21 0.34 0.45 0.54 0.61 0.78
Total 1.00 1.00 1.00 1.00 1.00 1.00
Additional Financials & Ratios:
1 Dividend/PAT (%) 0.00 0.00 0.00 0.00 0.00 0.00
2 Gross Fixed Assets 1821.90 1821.90 1821.90 1821.90 1821.90 1821.90
3 Paid up Capital 600.00 600.00 600.00 600.00 600.00 600.00
4 DFS/ TNW 1.25 1.06 0.74 0.49 0.31 0.27
5 Total Debt / T N W 1.25 1.06 0.74 0.49 0.31 0.27

Check Box
Diff. In Increase in TNW & Retained
1 Profits #VALUE! 1.30 1.30 1.30 1.30 0.00
2 Tax Provision/PBT 0.17 0.24 0.28 0.30 0.32 0.33
3
4
5
Sr. No. Year Ending March 31st, 1 2 3 4 5 6
Actuals Actuals Estimates Projected Projected Projected
1 Net sales 1524.10 1778.11 2032.13 2032.13 2032.13 2032.13
2 PBILDT 565.60 628.34 690.71 690.26 689.80 689.32
3 Profit before tax 201.47 283.24 368.32 397.32 426.31 456.59 Sales 1524.10 1,371.69 1,219
4 Profit after tax (PAT) 168.20 214.41 264.55 276.80 290.23 305.55 PBILDT 565.60 497.37 430.45
5 Net cash accruals 333.50 379.71 429.85 442.11 455.53 469.55 PAT 168.20 134.55 67.63
6 PBILDT / Sales (%) 37.11% 35.34% 33.99% 33.97% 33.94% 33.92% PBILDT/Net Sales (%) 37.11% 36.26% 35.30%
7 PAT / Sales (%) 11.04% 12.06% 13.02% 13.62% 14.28% 15.04% PAT/Net Sales (%) 11.04% 9.81% 5.55%
8 Dividend / PAT (%) 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
9 Gross block 1821.90 1821.90 1821.90 1821.90 1821.90 1821.90
10 Net block 1657.90 1493.89 1329.89 1165.89 1001.89 837.88
11 Paid-up Capital 600.00 600.00 600.00 600.00 600.00 600.00
12 TNW 937.70 1153.40 1419.25 1697.35 1988.88 2294.43
13 Group Investments 0.00 0.00 0.00 0.00 0.00 0.00
14 Adjusted TNW 937.70 1153.40 1419.25 1697.35 1988.88 2294.43
15 LTD / TNW 0.93 0.57 0.31 0.13 0.00 0.00
16 Total Debt Funds/ TNW 1.48 1.06 0.74 0.49 0.31 0.17
17 TOL / TNW 1.49 1.06 0.75 0.50 0.31 0.18
18 Current Assets 655.30 868.05 1130.94 1354.87 1592.21 1843.58
19 Current Liabilities 520.77 571.99 623.22 623.22 623.22 405.04
20 Net Working Capital 134.53 296.05 507.72 731.64 968.99 1438.54
21 Current Ratio 1.26 1.52 1.81 2.17 2.55 4.55

Abridged Fund Flow Statement

Year Ending March 31st, 1 2 3 4 5 6

Long Term Sources 379.71 429.85 442.11 455.53 469.55
Long Term Uses 218.18 218.18 218.18 218.18 0.00
Surplus/Deficit 161.53 211.67 223.92 237.35 469.55
Surplus/Incremental buildup of Current As 75.92% 80.51% 100.00% 100.00% 186.80%

Pattern of TCA Funding

Year Ending March 31st, 1 2 3 4 5 6
Sundry Creditors 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Other Current Liabilities 33.69% 25.57% 19.74% 16.48% 14.02% 0.27%
Bank Borrowing 45.78% 40.32% 35.37% 29.52% 25.12% 21.70%
Net Working Capital 20.53% 34.11% 44.89% 54.00% 60.86% 78.03%
100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Depreciation Check
Year Ending March 31st, 1 2 3 4 5 6
Dep as per P& L 164.00 164.00 164.00 164.00 164.00 164.00
Dep as per B/S 164.00 164.00 164.00 164.00 164.00 164.00
Difference 0.00 0.00 0.00 0.00 0.00 0.00

Reserves Check
Year Ending March 31st, 1 2 3 4 5 6
Retained Profits 168.20 214.41 264.55 276.80 290.23 305.55
Increase in Reserves 168.20 214.41 264.55 276.80 290.23 305.55
Difference 0.00 0.00 0.00 0.00 0.00 0.00
I C I C I Banking Corporation Ltd.
Sensitivity Ananlysis
Trend Analysis of Components of Cost of Sales
(Rs in lacs)

1 2 3 4 5 6 1 2 3

Net Sales 1,524.10 1,371.69 1,219.28 2,032.13 1,828.92 1,625.70 Estimates Projections Projections

Variable Cost* 854.85 769.36 683.88 1,139.80 1,025.82 911.84 RM / Net Sales 59.96% 56.76% 56.67%

* RM, Packing material, Consumable stores & spares, stock adj and other mfg expenses Spares / Net Sales 0.00% 0.00% 0.00%

Contribution 669.25 602.32 535.40 892.33 803.10 713.87 P & F / Net Sales 1.77% 1.80% 1.82%

Fixed Costs** 466.47 466.47 466.47 464.72 464.72 464.72 Labour / Net Sales 1.41% 1.33% 1.28%

**Power & fuel, Direct labour, Depreciation, SGA and Interest SGA / Net Sales 0.98% 0.93% 0.89%

PBT 201.47 134.55 67.63 426.31 338.38 249.15 OME / Net Sales 2.63% 4.52% 5.93%

Change in SIP / Net Sales 0.00% 0.00% 0.00%

PBT/Sales 13.22% 9.81% 5.55% 20.98% 18.50% 15.33%
Change in FG/ Net Sales 3.87% 0.67% 0.58%

Break Even Sales 1,062.31 1,058.32 Depreciation / Net Sales 10.76% 9.22% 8.07%

Total (Excl Dep) 62.89% 64.66% 66.01%

Cash Breakeven 688.83 684.83 Operating Margin 37.11% 35.34% 33.99%

SCENARIOS FOR OPERATIONS FOR FY ENDING 1

Scenario 1 Scenario 2 Scenario 3 Scenario 4 Scenario 5 Scenario 6

Change In Net Sales -2% 1,494 0% 1,524 5% 1,600 10% 1,677 0% 1,524 10%
Change In Variable costs 0% 855 2% 872 5% 898 0% 855 10% 940 10%
Contribution 639 652 703 822 584
PBILDT 533.81 547.20 597.76 716.71 478.81
PBT 170.99 184.38 234.94 353.88 115.99
PBILDT / Net Sales 35.74% 35.90% 37.35% 42.75% 31.42%
PAT/Sales 11.45% 12.10% 14.68% 21.11% 7.61%

Scenario 7 Scenario 8 Scenario 9 Scenario 10 Scenario 11 Scenario 12

Change In Net Sales 20% 1,829 0% 1,524 20% 1,829 -5% 1,448 0% 1,524 -5%
Change In Variable costs 0% 855 20% 1,026 20% 1,026 0% 855 -5% 812 -5%
Contribution 974 498 803 593 712
PBILDT 869.11 393.33 698.15 488.09 607.04
PAT 506.29 30.51 335.32 125.27 244.22
PBILDT / Net Sales 47.52% 25.81% 38.17% 33.71% 39.83%
PAT/Sales 27.68% 2.00% 18.33% 8.65% 16.02%

Scenario 13 Scenario 14 Scenario 15 Scenario 16 Scenario 17 Scenario 18

Change In Net Sales 0% 1,524 0% 1,524 -10% 1,372 -20% 1,219 0% 1,524 -20%
Change In Variable costs 0% 855 -10% 769 -10% 769 0% 855 -20% 684 -20%
Contribution 669 755 602 364 840
PBILDT 564.30 649.78 497.37 259.48 735.27
PAT 201.47 286.96 134.55 (103.34) 372.44
PBILDT / Net Sales 37.02% 42.63% 36.26% 21.28% 48.24%
PAT/Sales 13.22% 18.83% 9.81% -8.48% 24.44%

SCENARIOS FOR OPERATIONS FOR FY ENDING 4

Scenario 1 Scenario 2 Scenario 3 Scenario 4 Scenario 5 Scenario 6

Change In Net Sales 0% 2,032 -10% 1,829 -20% 1,626 10% 2,235 0% 2,032 10%
Change In Variable costs 0% 1,140 -10% 1,026 -20% 912 0% 1,140 10% 1,254 10%
Contribution 892 803 714 1,096 778
PBILDT 688.50 599.26 510.03 891.71 574.52
PAT 426.31 337.08 247.85 629.52 312.33
PBILDT / Net Sales 33.88% 32.77% 31.37% 39.89% 28.27%
PAT/Sales 20.98% 18.43% 15.25% 28.16% 15.37%

Scenario 7 Scenario 8 Scenario 9 Scenario 10 Scenario 11 Scenario 12

Change In Net Sales 20% 2,439 0% 2,032 20% 2,439 -5% 1,931 0% 2,032 -5%
Change In Variable costs 0% 1,140 20% 1,368 20% 1,368 0% 1,140 -5% 1,083 -5%
Contribution 1,299 664 1,071 791 949
PBILDT 1,094.92 460.54 866.96 586.89 745.49
PAT 832.74 198.35 604.78 324.71 483.30
PBILDT / Net Sales 44.90% 22.66% 35.55% 30.40% 36.68%
PAT/Sales 34.15% 9.76% 24.80% 16.82% 23.78%

Scenario 13 Scenario 14 Scenario 15 Scenario 16 Scenario 17 Scenario 18

Change In Net Sales -10% 1,829 0% 2,032 -10% 1,829 -20% 1,626 0% 2,032 -20%
Change In Variable costs 0% 1,140 -10% 1,026 -10% 1,026 0% 1,140 -20% 912 -20%
Contribution 689 1,006 803 486 1,120
PBILDT 485.28 802.48 599.26 282.07 916.46
PAT 223.10 540.29 337.08 19.89 654.27
PBILDT / Net Sales 26.53% 39.49% 32.77% 17.35% 45.10%
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 I C I C I Banking Corporation Ltd.

Trend Analysis of Components of Cost of Sales

Projections

56.09%

0.00%

1.82%

1.28%

0.92%

5.93%

0.00%

0.00%

8.07%

66.03%

33.97%
RIOS FOR OPERATIONS FOR FY ENDING 1

Scenario 6
1,677
940
736
631.22
268.40
37.65%
16.01%

Scenario 12
1,448
812
636
530.83
168.01
36.66%
11.60%

Scenario 18
1,219
684
535
430.45
67.63
35.30%
5.55%

RIOS FOR OPERATIONS FOR FY ENDING 4

Scenario 6
2,235
1,254
982
777.73
515.54
34.79%
23.06%

Scenario 12
1,931
1,083
848
643.88
381.69
33.35%
19.77%

Scenario 18
1,626
912
714
510.03
247.85
31.37%
12/07/2021 43904207.xls (Sensitivity) Page 16