(All figures are in lacs)

Cost of Project
A). Land

B). Buildings & Civil works

C). Plant & Machinery

D).Miscellaneous Fixed asset

E).Premilary Expense

G).Pre-Operative Expense

H).Conteingencies @ 10% of Fixed Assests

I).Margin Money for working capital 1st year
Total Cost of project

(All figures are in lacs)

Cost of Project
Contents

Amount

A). Land
Basic Cost ( 1 acres)
Registration & Stamp duty @ 15%
Cost of levelling
Cost of laying internal roads & approach roads
Cost of boundary walls
Cost of bore well (3Nos.)
Cost of main gate
B). Buildings & Civil works
Work shop shed (10,000 sq.ft.X 3 nos. @ 500/sq.ft. )
Office Building (1000 sq.ft. @ 400/sq.ft.)
Store cum godown for finished goods ( 20,000 sq.ft. @ 300/sq.ft.)
Inventory godown (500 sq.ft @ 300/sq.ft.)
Watchman shed & Parking stand
Generator Room
Other Civil Engineering Works
Sanitary & Sewage Disposal Arrangement
C). Plant & Machinery
Mixer
PVC pipe plant
Dies & Mandrel
Scraper & Grinder
Water Tank
Weighing Balance
Storage racks
Testing and Quality controls
Technical Knowhow
D).Miscellaneous Fixed asset
Office Equipments
Electric Gadgets
Air Compressor
Electrical Installation
DG Sets
E).Premilary Expense

80.00
12.00
10.00
20.00
25.00
3.00
0.40
150.00
4.00
60.00
1.50
5.00
1.00
5.00
20.00
4.00
50.00
0.95
1.50
1.30
0.50
2.00
1.00
1.00
1.00
5.00
4.00
10.00
40.00

MoA & Legal expenses

Market Survey
Feasibility report
G).Pre-Operative Expense
Traveling
Printing and Stationery
Miscellaneous
Advertisement
Insurance premium during construction
Establishment
H).Conteingencies @ 10% of Fixed Assests
I).Margin Money for working capital 1st year
Total Cost of project

0.75
2.00
2.00
2.00
0.50
10.00
2.00
10.00
15.00

Sources of Fund (in lacs)

Contents
Amount
Subsidy
50.00
Equity
Promoters
100.00
Debt
457.72
Total
607.72

Amount

150.40

246.50

62.25

60.00

 4.75

39.50
36.88
7.45
607.72

(All figures are in lacs)

Year 2007 Year 2008 Year 2009
187.50 212.00 238.77

Particulars\Years
Sales
Variable Expenses
Raw Material
Consumables ( 10% of RM)
Power & Fuel
Other manufacturing expenses (1 Lac)
Wages
Total variable Expenses
Fixed Expenses
Administrative Expenses (1Lac)
Other Miscellaneous (.5 lac)
Total Fixed Expense
OPBIDT
Less: Depreciation
OPBIT
Less: Financial Charges
Interest on working capital
Interest on term loan
Total Financial charges
OPBT
Preliminary Expenses Written off ( in 5 years)
PBT
Provision for tax (@ 30%)
PAT

19.59
1.96
7.00
1.00
8.52
38.07

20.90
2.09
7.49
1.00
8.95
40.43

22.21
2.22
8.01
1.00
9.39
42.83

1.00
0.50
1.50
147.93
25.20
122.73

1.00
0.50
1.50
170.07
25.20
144.88

1.00
0.50
1.50
194.43
25.20
169.23

3.13
59.50
62.63
60.10
0.95
59.15
13.19
45.96

3.36
47.60
50.96
93.92
0.95
92.97
26.54
66.43

3.60
35.70
39.31
129.93
0.95
128.98
40.21
88.76

Year 2010 Year 2011

253.09
268.28
22.21
2.22
8.58
1.00
9.86
43.86

22.21
2.22
9.18
1.00
10.36
44.96

1.00
0.50
1.50
207.73
25.20
182.53

1.00
0.50
1.50
221.82
25.20
196.62

3.73
23.80
27.54
154.99
0.95
154.04
49.95
104.09

3.87
11.90
15.77
180.85
0.95
179.90
59.69
120.21

(All figures are in lac

Cash flows from long-term funds
Initial cash Flow
Operating cash flow
(+) PAT
(+) Interest on term Loan (1-T), tax rate=33%
(+) Depreciation
(+) Preminary Expenses
Less Increase in WC Margin

Terminal cash Flow

(+) Net salvage value of fixed assets
(+) Net salvage value of WC margin

TOTAL

(All figures are in lacs)

flows from long-term funds point of view
Year 0
Year 1
Year 2
- 607.72

Year 3

Year 4

45.96

66.43

88.76 104.09

39.87
25.20
0.95
0.00

31.89
25.20
0.95
0.54

23.92
25.20
0.95
0.59

15.95
25.20
0.95
0.31

Year 5

120.21
7.97
25.20
0.95
0.33

469.54
9.22

- 607.72 111.98 123.93 138.24 145.88

632.76

Salvage value of fixed assets

Category
Book value Depreciation
Land
150.40
0.00
297.55
49.69
Building & Civil Works
75.14
38.85
Plant & Machinery
Miscellaneous Fixed
72.43
37.44
Assets
Total
125.99

Terminal Value
150.40
247.86
36.29
34.98
469.54

(All figures are in lacs)

WACC
Cost of Equity
Cost of debt
Equity
Debt
Tax
NPV
Cash Flows

15.00%
13.00%
100.00 0.1793012
457.72 0.8206988
33%

WACC

Year 0
Year 1
Year 2
Year 3
607.72 111.98 123.93 138.24
NPV

179.63 IRR

19%

s)

9.84%

Year 4
Year 5
145.88
632.76

SL.No. Category
1
PVC pipe 90mm
2
PVC Pipe 110mm

Selling Price(per Meter)

100.00
150.00

PVC pipe 110mm

Total Sales
Total Sales ( in lacs)

Year on Growth
6%
6%

Product/Year

Year 2015

PVC pipe 90mm

Production(meters)
S/P Per meter
Total Sales(a)

75000
100.00
7500000.00

Production(meters)
S/P Per meter
Total Sales(b)

75000
150
11250000.00

PVC pipe 110mm

Total Sales
Total Sales ( in lacs)

18,750,000.00
187.50

Year
Capicity Utilization

PVC pipe 90mm

PVC Pipe 110mm
Total

Year 2015
75%

Year 2016
80%

Year 2017
85%

Installed Capacity
100000 Meters/Year
100000 Meters/Year
200000 Meters/Year

Year 2016

Year 2017

Year 2018

Year 2019

80000
106.00
8480000.00

85000
112.36
9550600.00

85000
119.10
10123636.00

85000
126.25
10731054.16

80000
159.00
12720000.00

85000
168.54
14325900.00

85000
178.65
15185454.00

85000
189.37
16096581.24

21,200,000.00
212.00

23,876,500.00
238.77

25,309,090.00
253.09

26,827,635.40
268.28

Year 2018 Year 2019

85%
85%

Sl.No

Machine code

Mixer

PVC pipe plant

Dies & Mandrel

Scraper & Grinder

5
6

Water Tank
Weighing Balance

Storage racks

Testing and Quality controls

(In INR)
Machinary Specification
High speed Mixer, non shell type cap.50 kg. per
batch/hr.filled with complete controls and cooling
arrangement

Quantity Rate
4

100,000.00

2,500,000.00

Die size 20
Die size 25
Die size 45
Die size 63
Die size 75
Die size 90
Die size 110
Mandrel size 2.5 kg/cm2
Mandrel size 4 kg/cm3
Mandrel size 6 kg/cm4
Mandrel size 10 kg/cm5
Scraper, grinder, heavy duty fitted with electric
Motor 5 HP
Overhead water tank and recycling Pump units

1
1
1
1
1
1
1
1
1
1
1

5,000.00
5,000.00
5,000.00
5,000.00
5,000.00
5,000.00
5,000.00
15,000.00
15,000.00
15,000.00
15,000.00

150,000.00
130,000.00

heavy type industrial model 100 gm to 5 kg

heavy type industrial model 1 kg. to 100 kg
Pipe storage, racks, maintenance of small hand
tools, greasing, oiling equipment, etc.

2
2

10,000.00
15,000.00

65 mm/18 V PVC rigid pipe extrusion plant consisting

of twin screw extruder, vacuum sizing unit, cooling
tank, haul off unit and cutting device complete with
controls and motor, etc. (Capacity=200 kg/hr. )

10

20,000.00

Chemical testing lab., having chemical balance,

Oven and equipment with testing equipment,
apparatus for testing bulk density, specific gravity
lead and tin estimation (in ppm), Lab. Equipment
consisting of capacity testing apparatus, Impact
tests, compressive strength, Hydraulic pressure (long
term, short term) apparatus.

100,000.00
Total

(In INR)
Total
400,000.00

5,000,000.00

95,000.00
5,000.00
5,000.00
5,000.00
5,000.00
5,000.00
5,000.00
5,000.00
15,000.00
15,000.00
15,000.00
15,000.00
150,000.00
130,000.00
50,000.00
20,000.00
30,000.00
200,000.00

 100,000.00
6,125,000.00

SL.No.
1
2
3
4
5
6

Raw Material Requirement @ 100% Capacity (10000 Meters)

Material
Quantity(in MT)
Rate (/MT)
PVC resin
100
25,000.00
DOP
3.2
12,500.00
Stabilizer
3.2

6,000.00
Processing acids
1.2

8,000.00
Colourant
0.7

4,000.00
Filler
10.2

4,000.00
TOTAL

ty (10000 Meters)
Total
2,500,000.00

40,000.00

19,200.00

9,600.00

2,800.00

40,800.00
2,612,400.00

Year
Capicity Utilization

Raw Material
Raw Material(in lacs)

Year 2015
75%

Year 2016
80%

Year 2017
85%

Year 2018
85%

Year 2015
Year 2016
Year 2017
Year 2018
1,959,300.00 2,089,920.00 2,220,540.00 2,220,540.00
19.59
20.90
22.21
22.21

Year 2019
85%

Year 2019
2,220,540.00
22.21

Year on growth in
Power & Fuel Cost
Present Rate(/KWH)
Present Fuel Cost

7%
5.00
200,000.00

Power required ( In KWH)

Power Rate (/KWH)
Total Power Cost
Fuel Cost
Total Poer & Fuel Cost
Total (in lacs)

Year 2015
Year 2016
Year 2017
100000
100000
100000
5.00
5.35
5.72
500,000.00 535,000.00 572,450.00
200,000.00 214,000.00 228,980.00
700,000.00
7.00

749,000.00
7.49

801,430.00
8.01

Year 2018
Year 2019
100000
100000
6.13
6.55
612,521.50 655,398.01
245,008.60 262,159.20
857,530.10
8.58

917,557.21
9.18

Sl. No.
1
2
3
4
5
6
7

Designation
Manager
Chemist
Clerk cum typist
Accountant
Storekeeper
Skilled workers
Peon cum watchman

Wages ( In Lacs)

No.

Salary
1
1
2
1
2
5
2

Total salary

120,000.00
84,000.00
72,000.00
72,000.00
60,000.00
48,000.00
36,000.00
Total
Total(in lacs)
YoY growth

Year 2015
Year 2016
8.52

120,000.00
84,000.00
144,000.00
72,000.00
120,000.00
240,000.00
72,000.00
852,000.00
8.52
5%
Year 2017

8.95

Year 2018
Year 2019
9.39
9.86
10.36

(All figures are in lacs)

Assets
a). Buildings & Civil works
b).Plant & Machienry
c).Miscellaneous Fixed asset
Total

Pre-Operative Expense
Conteingencies

Allocation of Pre-operative & Conteingen

Costs
% in total
246.50
0.67
62.25
0.17
60.00
0.16
368.75
1.00

39.50
36.88

a). Buildings & Civil works

b).Plant & Machienry
c).Miscellaneous Fixed asset
Total

Depreciation as per Companies Act ( SL

Year 2015
Year 2016
9.94
9.94
7.77
7.77
7.49
7.49
25.20
25.20

a). Buildings & Civil works

b).Plant & Machienry
c).Miscellaneous Fixed asset
Total

Depreciation as per Income tax Act ( WD

Year 2015
Year 2016
14.88
14.13
15.03
12.02
14.49
11.59
44.39
37.75

ll figures are in lacs)

Pre-operative & Conteingencies

Pre-Operative Expense
Conteingencies Total
26.40
24.65
297.55
6.67
6.23
75.14
6.43
6.00
72.43
39.50
36.88

n as per Companies Act ( SLM)

Year 2017

Year 2018

9.94
7.77
7.49
25.20
as per Income tax Act ( WDM)
Year 2017
Year 2018
13.43
9.62
9.27
32.32

9.94
7.77
7.49
25.20

Year 2019
9.94
7.77
7.49
25.20

12.76
7.69
7.42
27.87

Year 2019
12.12
6.16
5.93
24.21

Depreciation Rates
Particulars
As per Companies Act
As per Income Tax

Buildings Machinery Miscellaneous Fixed Assets

3.34%
10.34%
10.34%
5%
20%
20%

Particulars
Raw materials
Consumables
Work in Progress
Debtors
Finished Goods
Cash Requirement
Creditors
TOTAL
Bank Finance (75%)
Margin Money(25%)

Money
Interest

(All figures are in lacs)

Working Capital Requirement
Period Year 2015 Year 2016 Year 2017
1.0
1.63
1.74
1.85
1.0
0.16
0.17
0.19
0.50
1.59
1.68
1.78
1.0
15.63
17.67
19.90
10.00
10.00
10.00
2.00
2.00
2.00
0.75
1.22
1.31
1.39
29.78
31.96
34.33
22.34
23.97
25.75
7.45
7.99
8.58

Interest On working capital

Year 2015 Year 2016 Year 2017 Year 2018
22.34
23.97
25.75
26.67
3.13
3.36
3.60
3.73

nt
Year 2018 Year 2019
1.85
1.85
0.19
0.19
1.83
1.87
21.09
22.36
10.00
10.00
2.00
2.00
1.39
1.39
35.57
36.88
26.67
27.66
8.89
9.22

Year 2019
27.66
3.87

Bank standard Loan rate for Working Capital

14.00%

ng Capital

Amount
Repayed
Interest

(figures are in lacs)

Repayment & Interest schedule
Year 2015 Year 2016 Year 2017
457.72
366.18
274.63
91.54
91.54
91.54
59.50
47.60
35.70

)
hedule

Standard Bank Interest rate

Year 2018 Year 2019
183.09
91.54
91.54
91.54
23.80
11.90

Repayment
Year 2015

13%

Year 2016
20.00%
20.00%

Year 2017 Year 2018Year 2019

20.00% 20.00% 20.00%

Year
PBT
Add Dep. (SLM)
Less Dep( WDV)
Less Unabsorbed losses
Taxable Income
Tax @33%
Total

(figures are in lacs)

Computation of Tax (in lacs)
Year 2015 Year 2016
59.15
92.97
25.20
25.20
44.39
37.75
0.00
0.00
39.96
80.42
13.19
26.54
13.19
26.54

are in lacs)
n of Tax (in lacs)
Year 2017 Year 2018 Year 2019
128.98
154.04
179.90
25.20
25.20
25.20
32.32
27.87
24.21
0.00
0.00
0.00
121.86
151.37
180.89
40.21
49.95
59.69
40.21
49.95
59.69