DPR - Siras Engg..

of 2

Detailed Project Report

Siras Engineering Pvt. Ltd.

www.Credit-Mantra.com

TABLE OF CONTENTS

1 EXECUTIVE SUMMARY .................................................................................................................. 1

1.1 INTRODUCTION.......................................................................................................................... 11.2 THE PROJECT............................................................................................................................. 11.3 PRODUCT.................................................................................................................................. 11.4 LOCATION ................................................................................................................................ 11.5 PROJECT COST AND MEANS OF FINANCE................................................................................. 21.6 KEY FACTORS OF PROJECT FOR DEBT ........................................................................................ 21.7 MANAGEMENT.......................................................................................................................... 31.8 CAPITAL STRUCTURE .................................................................................................................. 41.9 NET WORTH OF PROMOTERS...................................................................................................... 41.10 PROJECTED FINANCIALS............................................................................................................ 51.11 SENSITIVITY ANALYSIS ................................................................................................................. 5

2 PROPOSED PROJECT..................................................................................................................... 6

2.1 RAW MATERIAL ......................................................................................................................... 62.2 MARKETING ARRANGEMENTS- ................................................................................................... 62.3 INFRASTRUCTURE........................................................................................................................ 6

2.3.1 Land and Building .......................................................................................................... 62.3.2 Water ................................................................................................................................. 62.3.3 Electricity .......................................................................................................................... 7

2.4 PLANT AND MACHINERY ........................................................................................................... 72.5 MANPOWER.............................................................................................................................. 72.6 PROJECT IMPLEMENTATION SCHEDULE ...................................................................................... 82.7 MAJOR STATUTORY APPROVALS ............................................................................................... 82.8 INDUSTRY ANALYSIS ................................................................................................................... 8

3 RISK & SWOT ANALYSIS .............................................................................................................. 11

3.1 RISK ANALYSIS & MITIGATION MECHANISM............................................................................. 113.2 SWOT ANALYSIS..................................................................................................................... 12

3.2.1 Strengths: ........................................................................................................................ 123.2.2 Weakness: ...................................................................................................................... 123.2.3 Opportunities: ............................................................................................................... 123.2.4 Threats: ............................................................................................................................ 12

4 PROFITABILITY PROJECTIONS.................................................................................................... 13

5 CONCLUSION & RECOMMENDATIONS .................................................................................. 14

Detailed Project Report Siras Engineering Pvt. Ltd.

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1 EXECUTIVE SUMMARY

1.1 Introduction

Siras Engineering Pvt. Ltd. was incorporated on 23/03/2015 vide CIN No.

U29253PN2015PTC154447. Its registered office is at Flat No. I-1104, Greens

Society, Thergaon, Chinchwad, Pune, Maharashtra with an objective to set up

an Integrated Machining Shop of Forging and Casting material.

Company promoted by following Directors.

Mr. Sadanand Nilkanth Patil

Mr. Parthasarthy Venkateshwaralu

Mr. Kaustubh Avinash Palekar

1.2 The Project

Siras Engineering Pvt. Ltd. proposes to set up a Precision Machining Shop to

Manufacture components for Hydraulic, Industrial and automotive customers.

Capacity of 50,000 pcs per year, Production hours of 25,000 Hrs, total tonnage

of 500 MT at 148/1-E, Next to Rinder, Om Gurudev Industrial Estate, Mahalunge,

Chakan, Pune – 410501.

1.3 Product

Hydraulic industry complex core casting and machining – valve bodies,

port blocks and housing.

Passenger car/ heavy duty turbine bearing housing.

Drive train components to heavy duty and passenger cars.

Assembly products for Industrial Market segment.

1.4 Location

The proposed project site is located Plot no. 148/1-E, Next to Rinder, Om

Gurudev Industrial Estate Mahalunge, Chakan, Pune – 410501.


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1.5 Project Cost and Means of Finance

The total project cost is estimated at Rs. 285 Lakh, which is proposed to be

funded at a debt equity ratio of 60:40 with equity of Rs. 114 Lakh and Term

debt of Rs. 171 Lakh.

Project Cost

Particulars Amount % of Total Cost

Plant and Machinery 185.00 71.15%

Other Fixed Assets 40.00 15.38%

Preliminary and Pre Operative Expenses 5.00 1.92%

Margin Money for Working Capital 30.00 11.54%

TOTAL 260.00 100%

Means of Finance

Promoter's Contribution 104.00 40%

Term Loan from Banks 156.00 60%

TOTAL 260.00 100%

1.6 Key Factors of Project for Debt

Project Cost Rs 260.00 Lakh

Financing Plan Term Debt and Equity in the ratio of 60:40

Facility Term Debt: Rs 156.00 LakhWorking Capital Loan -79.00 Lakh

Moratorium Six (6) months from COD

Repayment 7 years

Security for TermDebt

The debt shall be secured by:1. First charge by way of mortgage of all Assets of the

Project.2. First charge on all current assets.3. Additional Collateral security - 70% of total Debts4. Personal Guarantee of Directors – (Net Worth 3.00 Cr)


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1.7 Management

Mr. Sadanad Patil, age 48 years, is a Production Engineering Graduate from

University of Marathwada, Aurangabad with 3rd Rank, Having 27 years of

Industry Experience.

He implemented over 100 operations in Bajaj Auto Ltd. Hands on working for

Tool Design and Manufacturing and extended this work in Machine tool Design

and Assembly.

He also has commercial expertise in procurement of Forging and Machining

Commodity. He successfully set up the Export Operations at Badve Group. He

added the customers like INGERSOLL RAND, FICOSA, GE, BROSE, FAURECIA,

VOLVO, FIAT and HONDA. He set up a Joint venture with Cellino group –Italy

for Badve . He also executed 4 Green field project of Badve group.

Mr. Venkat Parthasarthy, age 40 years, is an Engineering graduate from PSG

College of Technology and MBA from Iowa State University (USA). He has

worked for 15 years with Major Corporate in USA (Eaton, Case and New

Holland and Mercury Marine) in capacity of Global Purchasing Head. In his last

assignment, Mr. Parthasarthy, turned around a sick Industry (Precision Machine,

USA) within 2 years, currently the organization is making around 100 crores

turnover and with a healthy margin of 15%. Mr. Parthasarthy have network

contact with major OEM’s. He is stationed in USA, he will be leading the

marketing activities of Siras Engineering in USA, and this will be a major strength

for the company.

Mr. Kaustubh Palekar age 42 years, is a PGDBM from IBS Bangalore, with over

21 years of experience in manufacturing industry, including 10+ years of P&L

management, and business development, particularly in the Automobile,

construction equipment, mining and Farm Equipment sector.

He has the proficiency in technical and commercial aspects of setting up

projects from conception to completion. Operational expertise in supply chain,

including procurement, across multiple plants and locations - process


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efficiency improvement through six sigma and lean, localization, outsourcing,

automation and ERP implementation.

Skilled at team management, talent development and resource optimization

with focus on quality deliverable and cost reduction.

1.8 Capital Structure

Presently the authorized and paid up capital of company is 1.00 Lacs which will

be increased upto 250 Lacs the extent of projected equity before getting term

loan sanction / disbursement. The shareholding pattern of Company is as on

date, is as under:

S. No. Name of the Share Holder % of Share Holding

1. Mr. Sadanand Nilkanth Patil 25%

2. Mr. Parthasarthy Venkateshwaralu 25%

3. Mr. Kaustubh Avinash Palekar 25%

4. Mr. Rajesh Rawoor 25%

Total

1.9 Net worth of Promoters

The net worth of the promoters as on 31st March 2014 is as follows:

S. No. Name of the Share Holder Net Worth (Lakh)1. Mr. Sadanand Nilkanth Patil 125.00 Lacs

2. Mr. Parthasarthy Venkateshwaralu 50.00 Lacs

3. Mr. Kaustubh Avinash Palekar 75.00 Lacs

4. Mr. Rajesh Rawoor 200.00 Lacs

Total 400.00 Lacs


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1.10 Projected Financials

The projected profitability statement of the project is as given below:

(Rs. Lakhs)

Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year

Sales 550 577.5 606.38 636.69 668.53 701.95 737.05

Profit Before Tax 41.54 49.1 56.87 64.9 73.13 81.61 90.37

Profit After Tax 33.23 38.39 42.06 46.14 50.56 55.31 60.41

NP Ratio 6% 7% 7% 7% 8% 8% 8%

DSCR 1.55 1.71 1.87 2.06 2.3 2.61 3.01

IRR 21.52%

1.11 Sensitivity Analysis

Particulars Average DSCR IRR

Actual 2.07 21.52%

5% Reduction in selling price 1.18 4.09%

5% Increase in variable cost 1.33 7.26%


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2 PROPOSED PROJECT

Siras Engineering Pvt. Ltd. proposes to set up a Precision Machining Shop to

Manufacture components for Hydraulic, Industrial and automotive customers.

Capacity of 50,000 pcs per year, Production hours of 25,000 Hrs, total tonnage

of 500 MT at 148/1-E, Next to Rinder, Om Gurudev Industrial Estate, Mahalunge,

Chakan, Pune – 410501.

2.1 Raw Material

Main Raw material is the Aluminum and Cast Iron which are easily available

across:

The major purchase of Aluminum will be from Hindalco & Jindal.

The purchase of cast Iron will be mainly from Indo Shell Mould Ltd,

Coimbatore due to quality approval of final product.

2.2 Marketing arrangements-

Siras Engineering has made the strategic tie-up with ABB Ltd, Eton Ltd. and

Stewart Mfg for the machining job / business. The complete production

capacity will be utilized above companies, and 80% production will export.

2.3 Infrastructure

2.3.1 Land and Building

Company has taken a constructed shed measuring 4000 Sqft on rental to run

the workshop. After competition of construction on its own MIDC land

company will shift the plant and machinery there.

This shed is sufficient to accommodate plant and machinery, Raw material and

Finish Goods godown, stores, security, canteen and laboratory etc.

2.3.2 Water

Water requirement in the project will be very less. Total consumption for the

entire production process will 3000 Ltr/ Day.


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2.3.3 Electricity

The existing rented premises has MSEB approved connection, Demand of 100

KVA will be increased by MSEB before machines are installed. The rented

permises is located in Chakan area, where major OEM’s are located,

government ensured uninterrupted power supply.

2.4 Plant and Machinery

The Company is process to purchase the following plant and machinery from

M/s Surin Automotive Pvt. Ltd, Pune.

Machine Description Make Powerconsumption

Capacity TonnagePer Year

Horizontal Machining center –4000

Mazak 30KW 5000 hrs 150

Horizontal Machining center BFW 30 KW 5000 hrs 150

Vertical Machining Center -410 A-2 with 4th Axis

Mazak 18.5 KW 5000 hrs 75

Vertical Machining centerwith pallet changer

BFW 18.5 KW 5000 hrs 50

Vertical Machining centerwith pallet changer

BFW 18.5 KW 5000 hrs 50

2.5 Manpower

The Company proposes to recruit well-trained staff for the proposed project.

The total of 20 personnel will be required as follows for operation of plant in

direct, administration and other categories. The skilled operator must have

necessary experience and adequate qualification.

Category Nos

Manager 1

Engineers 3

supervisors 2

Skilled Labour 12

Administrative Staf 2

Total 20


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2.6 Project Implementation Schedule

Since Company will install all machines on readymade rented premises which

is already taken, The Installation will be completed by Oct-15 and commercial

production could be started in Nov-15.

2.7 Major Statutory Approvals

As per the information provided by the Company, the status of major statutory

approvals required for the implementation of the project is given below:

Approval/ Consent Agency Status

SSI Certification DIC (Govt. of Maharashtra) Applied

Pollution Clearance NA NA

Electricity Maharashtra State ElectricityBoard

Applied

Central excise & Sales taxregistration

Excise Department and SalesTax Department

Received

2.8 Industry Analysis

India Market

Revenue in the Machine Shop Services industry has experienced robust growth

during the five years to 2015. As the industry's major markets, including

Passenger Auto sector, Commercial Transportation manufacturing, picked up,

so did revenue. During the five years to 2020, operators will devote further

resources to satisfying growing demand from manufacturers in industries like

automobile manufacturing, commercial transport manufacturing and metal

forging.

India stands 14th in production and 10th in the consumption of machine tools

in the world as per the 2015 Gardner Business Media survey. The country is set

to become a key player in the global machine tools industry and is likely to see

substantial high-end machine tool manufacturing. With emphasis on Make in


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India and manufacturing growth, for which the machine tools sector serves as

the mother industry.

The Indian Machine tool Industry has around 1000 units in the production of

machine tools, accessories/attachments, subsystems and parts. Of these,

around 25 in the large scale sector account for 70 percent of the turnover and

the rest are in the SME sector of the industry. Approximately, 75 per cent of the

Indian machine tool producers are ISO certified.

Ref: Indian Machine Tool Manufacturing Association (www. imtma.in)

The industry can be segmented in several ways:

CNC ConventionalForming Rs. 126 Cr RS. 336 CrCutting Rs. 3295 Cr Rs. 473 Cr

Indian Machine Tool Industry 2013-14 & 2014-15 (INR Crores)

2013-14 2014-15 Growth RateProduction 3481 4320 22%Exports 246 280 13%Imports 4672 5317 14%Consumption 7907 9358 18%

The Indian machine tools sector offers several opportunities for investment.

Given the current gap between demand and supply, there is a clear need for

adding capacities in this sector. The industry is moving towards increasingly

sophisticated CNC machines, driven by demand from key user segments, such

as, automobiles and consumer durables, Aerospace etc.

Machine tool manufacturers need to develop capabilities to cater to this

demand and investments in this area could yield long term benefits.


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US machine tool industry is highly fragmented with over 20,000 independently

owned business units. Total industry sales revenue is about $40 Billion with top 50

players make only 10% of the total revenue.

Customers are OEM’s that procure components from suppliers and further

process/assemble and convert to final product. OEM’s are focusing on core

competence and divesting noncore activities. OEM’s are allocating capital

investment to R&D, and core competence activities.

OEM’s are outsourcing most of the machining work. Machined components

are mostly leveraged commodity, with many players in the market; it is suitable

for the buyer to outsource. Buyers have more buying power.

Market is in need of suppliers with the following, Engineering expertise, global

manufacturing foot print, supply chain expertise, warehouse, and vertical

integration of foundry.

Global Analysis

China currency valuation (appreciated over 30%) and local growth spurred for

more local consumption. It is forecasted that china growth will predominantly

come from local consumption.

OEM’s are shifting the manufacturing base. India will play a major role in

absorbing the work. New government of India is focusing on making India as

one of the low cost manufacturing hub. Government is planning to do the

following

Ease of doing business

Tax reform

Infrastructure

Incentive for foreign investment (especially in manufacturing).

Reduce interest rate.


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3 RISK & SWOT ANALYSIS

3.1 Risk Analysis & Mitigation Mechanism

Type of Risk Risk

Category

Mitigation Measures

Project Cost &

Time Overrun

Low The project cost has been estimated based on the final

quotations and the estimates made by the Company

on basis of its promoters experience same field.

Raw Material

Availability

Low The major raw material required for the proposed

facilities is Cast Iron and Aluminum. These materials

can be procured from reputed manufacturer Jindal,

Hindalco and foundries in Coimbatore and Kolhaphur ,

Cost Risk Low For the purpose of financial analysis, the raw material

and other costs have been assumed based on the

average market prices. Moreover, the sensitivity

analysis at 5% increase in variable costs shows that the

Company can withstand reasonable adverse

fluctuations in the cost levels.

Off Take Risk Low These machines can be used for various customers,

only change required is develop the program to

machine the component.

Price Risk Medium Raw material escalation is a pass through to customers,

this is done through Long Term Agreement.

Funding Risk Low Promoters already arranged 100% of the equity

contribution and ready to bring upfront before

sanctioning the loans. The project is financially viable

with a comfortable Avg. DSCR of 2.07.


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3.2 SWOT Analysis

3.2.1 Strengths:

High growth rate

High Profitability and revenue due to upgraded Technology and low

labor cost

Promoter of the company is a highly experienced and qualified person.

They also have sound financial background.

3.2.2 Weakness:

Investments in research and development

Future competition

3.2.3 Opportunities:

New acquisitions

New markets

Growing demand

3.2.4 Threats:

Only prominent threat is 3D printing technology, but these will be a

threat for shops that are specializing in 1 to 5 pcs range. Hence 3D is not

suitable for mass production.

As could, be seen from the above, the strengths and opportunities are more.

The weaknesses and threats can be surmounted by adopting appropriate

managerial strategy / business tactics.


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4 PROFITABILITY PROJECTIONS

The following Annexure listed below will provide the complete financial model

of the project:

Annexure -1 Project cost estimate

Annexure -2 Projected Profitability Statement

Annexure -3 Projected Balance sheet

Annexure -4 Term Loan Repayment Schedule

Annexure -5 Projected Cash flow statement

Annexure -6 Projected Working Capital Requirement

Annexure -7 Key Financial Indicator, Ratio, Sensitivity Analysis

Annexure -8 Income Tax Calculation

Annexure -9 Depreciation Calculation


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5 CONCLUSION & RECOMMENDATIONS

The project is technologically and economically viable. There is no scarcity for

raw material.

Overall growth outlook for the industry appears positive. Some of the factors

that would drive growth in the industry are:

1) Low cost operations

2) Research-based processes

3) Improvements in API

4) Availability of skilled manpower.

Overall the project is well conceived and conceptualized, with sound

commercial viability. The expected financial returns are quite satisfactory.

The project is being implemented by promoters having requisite background

and experience and with employment of experienced professionals, experts

and consultants. All perceived risks have adequate safeguards.

Thus, based on the foregoing analysis and suitable mitigation of risks

enumerated in the risk analysis, the proposed project of Rs. 285.00 Lakhs by

M/s Siras Engineering Pvt. Ltd. is viewed as financially viable and bankable.

Annexure -1Rs. In Lakhs.

SL No Particulars Amount % of Total Cost1 Land 0.00 0.00%2 Site Development 0.00 0.00%3 Civil and Building Construction 0.00 0.00%4 Plant and Machinery 185.00 71.15%5 Other Fixed Assets 40.00 15.38%6 Pre Operative and Premilary Expenses 5.00 1.92%7 Interest During Construction 0.00 0.00%8 Margin Money for Working Capital 30.00 11.54%TOTAL COST OF THE PROJECT 260.00 100.00%

1 Promoter's Contribution 104.00 40%2 Term Loan from Banks 156.00 60%TOTAL MEANS OF FINANCE 260.00 100%

MEANS OF FINANCE

Total Project Cost and Mean of Finance

PROJECT COST

TOTAL MEANS OF FINANCE 260.00 100%

Annexure -2In Lacs

Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year

Total Sales 550.00 577.50 606.38 636.69 668.53 701.95 737.05

Cost of Production.Cost of Raw Material 330.00 346.50 363.83 382.02 401.12 421.17 442.23Consumables (Stores & Spares ) 22.00 23.10 24.26 25.47 26.74 28.08 29.48Power 27.50 28.88 30.32 31.83 33.43 35.10 36.85Man Power Cost 55.00 57.75 60.64 63.67 66.85 70.20 73.71Repair and Maintinance Cost 11.00 11.55 12.13 12.73 13.37 14.04 14.74Selling and admin Expenses 11.00 11.55 12.13 12.73 13.37 14.04 14.74Rent of WorkShop 6.00 6.00 6.00 6.00 6.00 6.00 6.00Total Cost of Production 462.50 485.33 509.31 534.45 560.88 588.63 617.75

EBDIT 87.50 92.17 97.07 102.24 107.65 113.32 119.30Less : Interest on Term Loan 19.56 16.55 13.54 10.53 7.52 4.51 1.50Less : Interest on CC 8.11 8.52 8.94 9.39 9.86 10.35 10.87Less : Depreciation 13.98 13.98 13.98 13.98 13.98 13.98 13.98Profit Before Tax 45.86 53.13 60.61 68.35 76.29 84.48 92.95Provision for Taxation 9.18 12.26 16.11 19.84 23.44 26.98 30.47Profit After Tax 36.68 40.87 44.50 48.51 52.85 57.51 62.48Less Dividend 0.00 0.00 0.00 0.00 0.00 0.00 0.00Retained Earnings 36.68 40.87 44.50 48.51 52.85 57.51 62.48Cumulative Retained Earnings 36.68 77.55 122.05 170.56 223.41 280.92 343.40

Projected Profitability Statement

Annexure -3Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th YearSources of FundsCapital 104.00 104.00 104.00 104.00 104.00 104.00 104.00Reserves (Cumulative PAT) 36.68 77.55 122.05 170.56 223.41 280.92 343.40

Sub Total a 140.68 181.55 226.05 274.56 327.41 384.92 447.40Secured Term Loans 133.71 111.43 89.14 66.86 44.57 22.29 0.00Sub Total b 133.71 111.43 89.14 66.86 44.57 22.29 0.00Current LiabilitiesWorking Capital (CC) 77.98 81.88 85.97 90.27 94.78 99.52 104.50Creditors 27.12 28.48 29.90 31.40 32.97 34.62 36.35Sub Total c 105.10 110.36 115.88 121.67 127.75 134.14 140.85

Total Sources 379.50 403.34 431.07 463.09 499.74 541.34 588.25

Application of FundsFixed AssetGross Block 230.00 230.00 230.00 230.00 230.00 230.00 230.00Less Dep. To date 13.98 27.95 41.93 55.91 69.88 83.86 97.84

Projected Balance Sheet

Less Dep. To date 13.98 27.95 41.93 55.91 69.88 83.86 97.84Net Block 216.02 202.05 188.07 174.09 160.12 146.14 132.16

Current AssetInventories (Finished Goods) 45.21 47.47 49.84 52.33 54.95 57.69 60.58Inventories (RM) 27.12 28.48 29.90 31.40 32.97 34.62 36.35Sundry Debtors 67.81 71.20 74.76 78.50 82.42 86.54 90.87Other Current Assets 11.00 11.55 12.13 12.73 13.37 14.04 14.74Cash & Bank Balances 12.34 42.60 76.37 114.04 155.91 202.31 253.55Sub Total: Current Assets 163.48 201.29 243.00 289.00 339.62 395.20 456.08Total Applications 379.50 403.34 431.07 463.09 499.74 541.34 588.25

Annexure -4Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year

Opening Balance 0.00 133.71 111.43 89.14 66.86 44.57 22.29Addition 156.00 0.00 0.00 0.00 0.00 0.00 0.00Total 156.00 133.71 111.43 89.14 66.86 44.57 22.29Repayment 22.29 22.29 22.29 22.29 22.29 22.29 22.29Closing Balance 133.71 111.43 89.14 66.86 44.57 22.29 0.00Interest @13.5% 19.56 16.55 13.54 10.53 7.52 4.51 1.50

REPAYMENT SCHEDULE

Annexure -5Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th YearPAT As per P&L Account 36.68 40.87 44.50 48.51 52.85 57.51 62.48Depreciation 13.98 13.98 13.98 13.98 13.98 13.98 13.98 Increase in a) Capital 104.00 - - - - - -b) Secured Term Loans 156.00 - - - - - -c) Cash Credit Facility 77.98 3.90 4.09 4.30 4.51 4.74 4.98Increase in Current Liability 27.12 1.36 1.42 1.50 1.57 1.65 1.73

Total of Sources 415.76 60.10 63.99 68.28 72.91 77.87 83.17

Project Capital Expenses 225.00Preliminary Expenses 5.00Increase in Fixed Assets 0.00 - - - - - -Repayment of Term Loan 22.29 22.29 22.29 22.29 22.29 22.29 22.29Increase in Current Asset 151.14 7.56 7.94 8.33 8.75 9.18 9.64Total Applications 403.42 29.84 30.22 30.62 31.03 31.47 31.93Opening Cash Balance 0 12.34 42.60 76.37 114.04 155.91 202.31Cash Surplus/Deficits 12.34 30.26 33.77 37.67 41.87 46.40 51.24Closing Cash Balance 12.34 42.60 76.37 114.04 155.91 202.31 253.55

CASH FLOW STATEMENT

Annexure -6

Particulars Holdinglevel(days) 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th YearStock of raw materials 30 27.12 28.48 29.90 31.40 32.97 34.62 36.35Finished goods 30 45.21 47.47 49.84 52.33 54.95 57.69 60.58Sundry Debtors 45 67.81 71.20 74.76 78.50 82.42 86.54 90.87Total Current Assets 140.14 147.14 154.50 162.23 170.34 178.85 187.80Sundry Creditors 30 27.12 28.48 29.90 31.40 32.97 34.62 36.35Total Current Liabilities 27.12 28.48 29.90 31.40 32.97 34.62 36.35Working capital gap 113.01 118.66 124.60 130.83 137.37 144.24 151.45Less 25% of current assets 35.03 36.79 38.63 40.56 42.58 44.71 46.95MPBF 77.98 81.88 85.97 90.27 94.78 99.52 104.50Utilisation 80% 62.38 65.50 68.78 72.22 75.83 79.62 83.60ROI 13% 13% 13% 13% 13% 13% 13% 13%Interest 8.11 8.52 8.94 9.39 9.86 10.35 10.87

COMPUTATION OF WORKING CAPITAL REQUIREMENTS

Annexure -7Sl No Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year1 Net Profit Ratio 6.67% 7.08% 7.34% 7.62% 7.91% 8.19% 8.48%2 EBDIT/Sales 15.91% 16.0% 16.0% 16.1% 16.1% 16.1% 16.2%3 Current Ratio 1.56 1.82 2.10 2.38 2.66 2.95 3.244 Debt & Equity Ratio 0.95 0.61 0.39 0.24 0.14 0.06 0.005 FACR 1.62 1.81 2.11 2.60 3.59 6.56 #######6 TOL/TNW 1.70 1.22 0.91 0.69 0.53 0.41 0.317 Debtors Days 45 45 45 45 45 45 458 Crediors Days 30 30 30 30 30 30 30

Key Financial Indicators

Annexure -8Sl No Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year1 Profit Before Taxes 45.86 53.13 60.61 68.35 76.29 84.48 92.952 Add Depreciation on SLM 13.98 13.98 13.98 13.98 13.98 13.98 13.983 Total 59.83 67.11 74.59 82.33 90.27 98.46 106.934 Less Depreciation on WDV 34.50 29.33 24.93 21.19 18.01 15.31 13.015 Less: Unabsorbed Dep 0.00 0.00 0.00 0.00 0.00 0.00 0.006 Balance 25.33 37.78 49.66 61.14 72.26 83.15 93.927 Taxable at Normal rates 25.33 37.78 49.66 61.14 72.26 83.15 93.928 Profit Taxable as per MAT 45.86 53.13 60.61 68.35 76.29 84.48 92.959 Normal tax @32.445% 8.22 12.26 16.11 19.84 23.44 26.98 30.4710 MAT @ 20.00775% 9.18 10.63 12.13 13.68 15.26 16.90 18.60

11 Income Tax Payable 9.18 12.26 16.11 19.84 23.44 26.98 30.47

COMPUTATION OF INCOME TAX AS PER INCOME TAX ACT 1961

Annexure -9Particulars % 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th YearPlant & MachineryGross Block 189.00 189.00 189.00 189.00 189.00 189.00 189.00Additions/Adjustment 0.00 0.00 0.00 0.00 0.00 0.00 0.00Total 189.00 189.00 189.00 189.00 189.00 189.00 189.00Depreciation brought forward 0.00 9.98 19.96 29.94 39.92 49.90 59.88Depreciation for the year 5.28% 9.98 9.98 9.98 9.98 9.98 9.98 9.98Total Depreciation 9.98 19.96 29.94 39.92 49.90 59.88 69.85Net Block 179.02 169.04 159.06 149.08 139.10 129.12 119.15Other Fixed AssetsGross Block 41.00 41.00 41.00 41.00 41.00 41.00 41.00Additions/Adjustment 0.00 0.00 0.00 0.00 0.00 0.00 0.00Total 41.00 41.00 41.00 41.00 41.00 41.00 41.00Depreciation brought forward 0.00 4.00 8.00 11.99 15.99 19.99 23.99Depreciation for the year 9.75% 4.00 4.00 4.00 4.00 4.00 4.00 4.00Total Depreciation 4.00 8.00 11.99 15.99 19.99 23.99 27.98Net Block 37.00 33.01 29.01 25.01 21.01 17.02 13.02Total Gross Block 230.00 230.00 230.00 230.00 230.00 230.00 230.00Additions/Adjustment 0.00 0.00 0.00 0.00 0.00 0.00 0.00Total 230.00 230.00 230.00 230.00 230.00 230.00 230.00Total Accumulated Depreciation 13.98 27.95 41.93 55.91 69.88 83.86 97.84Depreciation for the year 13.98 13.98 13.98 13.98 13.98 13.98 13.98Net Block 216.02 202.05 188.07 174.09 160.12 146.14 132.16PARTICULARS Dep rate 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th YearPlant and MachineryOpening WDV 189.00 160.65 136.55 116.07 98.66 83.86 71.28Additions/Adjustment 0.00 0.00 0.00 0.00 0.00 0.00 0.00Total 189.00 160.65 136.55 116.07 98.66 83.86 71.28Depreciation for the year 15% 28.35 24.10 20.48 17.41 14.80 12.58 10.69Closing WDV 160.65 136.55 116.07 98.66 83.86 71.28 60.59Office EquipmentsOpening WDV 41.00 34.85 29.62 25.18 21.40 18.19 15.46Additions/Adjustment 0.00 0.00 0.00 0.00 0.00 0.00 0.00Total 41.00 34.85 29.62 25.18 21.40 18.19 15.46Depreciation for the year 15% 6.15 5.23 4.44 3.78 3.21 2.73 2.32Closing WDV 34.85 29.62 25.18 21.40 18.19 15.46 13.14Total Depreciation for the year 34.50 29.33 24.93 21.19 18.01 15.31 13.01

Under the Income Tax Act

DEPRECIATION SCHEDULEUnder the Companies Act

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