Vegetron Case_7th Ed._Template_1.xls

7/27/2019 Vegetron Case_7th Ed._Template_1.xls

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Name of Company Vegetron Limited

Currency-Rs.in (M,Cr,) Rs. In Million

Reporting Period Yearly

No. of Year

Projected Year-1 1Y

Projected Year-2 2Y

Projected Year-3 3Y

Projected Year-4 4Y

Projected Year-5 5Y

Projected Year-6 6Y

Projected Year-7 7Y

Projected Year-8 8Y

Projected Year-9 9Y

Projected Year-10 10Y

Note:In this ent ire fi le, al l those c el l

f i l led withyel low co lour, are t

inpu ts. So they have to be fi ll

approp riate data. Rest of the

calcu lated through fo rmu


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that are

e basic

ed wi th

ells are

las.


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Vegetron Limited

Cost of Project and Means of Finance

Rs. In Million

Cost of Project

Land and site development 10.00Building 15.00

Plan and Machinery 62.00

Miscellaneous Fixed assets 4.00

Preliminary Expenses 2.00

Pre-Operative expenses 11.50

(including interest

during construction)

Contingency margin 8.00

Working capital margin 8.50

Total 121.00

Means of Finance

Share Capital 50.00

Term Loans 60.00

State Governments Spicial 11.00

incentive loan( Repayable in

6 installments after 12 years)

Total 121.00


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Vegetron Limited

60.00

16 HYL

12%

Year Loan Loan inst. Loan inst. Loan o/s Loan o/s Int. for the

o/s at paid paid at the end at the end first half

the for first for second of the first of the year

beginning half year half year half year second

half year

1 2 3 4 5 6 7

1Y 60.00 - - 60.00 60.00 3.60

2Y 60.00 - 3.75 60.00 56.25 3.603Y 56.25 3.75 3.75 52.50 48.75 3.38

4Y 48.75 3.75 3.75 45.00 41.25 2.93

5Y 41.25 3.75 3.75 37.50 33.75 2.48

6Y 33.75 3.75 3.75 30.00 26.25 2.03

7Y 26.25 3.75 3.75 22.50 18.75 1.58

8Y 18.75 3.75 3.75 15.00 11.25 1.13

9Y 11.25 3.75 3.75 7.50 3.75 0.68

10Y 3.75 3.75 - - - 0.23

Rs. In

Interest on Term Loan

Loan Amount ( Rs. In M )

Installment No.

HY installment

Rate of Interest


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Int. for the Total int.

second half for the

year term loan

8 9=7+8

3.60 7.20

3.60 7.203.15 6.53

2.70 5.63

2.25 4.73

1.80 3.83

1.35 2.93

0.90 2.03

0.45 1.13

- 0.23

illion


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Vegetron Limited

Working Capital Requirements

Margin of WC 25%

Sr.No. Item Norms in 1Y 2Y 3YMonths

A

1 Raw Materials(Including Consumables) 1.50 14.04 16.85 19.66

2 Stock-in-Process 0.03 0.32 0.38 0.45

3 Finished Goods 0.50 5.34 6.38 7.46

4 Book Debts * 1.00 14.40 17.28 20.16

Total Current Assets 34.10 40.89 47.72

B Less : Margin for Working Caiptal from

Long term Sources(25% of Total Current 8.53 10.22 11.93

Assets)

C Less : Trade Credit for Raw Materials 0.50 4.68 5.62 6.55

and Consumable Stores

D Bank Finance for Working Capital (A-B-C) 20.90 25.05 29.24

* Book debts include exicse duty. However, for the sake of simplicity we have ignored excise duty her

Rs. In Million


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e.


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Vegetron Limited

Total Assets

Preoperative Expenses

Contingency Margin

Building P & M Misc.Assets NEW RATRate_Companies Act (SLM) 3.34% 7.42% 7.42% Rate_Comp

Rate_ I T Act (WDV) 10.00% 15.00% 15.00% Rate_ I T A

Additional D

A. Asset Valuation For Depreciation Purposes

Asset Basic Share of Share of Total

Cost Preoperative Contingency Cost

Expenses Margin

Land 10.00 1.26 0.88 12.14

Building 15.00 1.90 1.32 18.21

Plant & Machinery 62.00 7.84 5.45 75.29

Miscellaneous Fixed Assets 4.00 0.51 0.35 4.86

Total 91.00 11.50 8.00 110.50

Depreciation Schedules

B. Depreciation Schedule for Company Law Purpose (Straight Line Method)

Assets 1Y 2Y 3Y 4Y 5Y

Building 0.608 0.608 0.608 0.608 0.608

Plant & Machinery w 5.586 5.586 5.586 5.586

Miscellaneous Fixed Assets 0.360 0.360 0.360 0.360 0.360

Total Depreciation 0.969 6.555 6.555 6.555 6.555

C. Depreciation Schedule for Income Tax Purpose (Written Down Value Method)

Assets 1Y 2Y 3Y 4Y 5Y

Building 1.821 1.639 1.475 1.328 1.195

Plant & Machinery 11.293 9.599 8.159 6.935 5.895

Miscellaneous Fixed Assets 0.729 0.619 0.526 0.447 0.380

Total Depreciation 13.843 11.858 10.161 8.710 7.470

Rs. In Million


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S Building P & M Misc.Assetsanies Act (SLM) 0.0334 0.0809 0.0475

t (WDV) 0.1000 0.1500 0.1500

ep. In the 1st Yr_IT Act 0.2000

SLN

DB

6Y 7Y 8Y 9Y 10Y

0.608 0.608 0.608 0.608 0.608

5.586 5.586 5.586 5.586 5.586

0.360 0.360 0.360 0.360 0.360

6.555 6.555 6.555 6.555 6.555

6Y 7Y 8Y 9Y 10Y

1.076 0.968 0.871 0.784 0.706

5.011 4.259 3.620 3.077 2.616

0.323 0.275 0.234 0.199 0.169

6.410 5.502 4.725 4.060 3.490


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Vegetron Limited

Preliminary Expenditure Written Off

Preliminary Expenditure (Rs.In M) 2.00

Base For Written Off No.Year 5

Particulars 1Y 2Y 3Y 4Y 5Y 6Y 7Y

Preliminary Exp. 0.4 0.4 0.4 0.4 0.4 0.4 0.4

0.4 0.4 0.4 0.4 0.4 0 0


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Rs. In Million

8Y 9Y 10Y

0.4 0.4 0.4

0 0 0


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Vegetron Limited

Tax Calculation

Rate of Income Tax 30%

Particulars 1Y 2Y 3Y 4Y 5Y 6Y 7Y

Profit/Loss Before Tax 14.50 14.60 19.96 20.23 20.46 20.66 20.83

Add: Depreciation As per

Company Law Purposes 0.97 6.55 6.55 6.55 6.55 6.55 6.55

Sub-Total 15.47 21.16 26.52 26.78 27.02 27.22 27.38

Less: Depreciation As per

Income Tax Law 13.84 11.86 10.16 8.71 7.47 6.41 5.50

Sub-Total 1.63 9.30 16.35 18.07 19.55 20.81 21.88

Gross total Income 1.63 9.30 16.35 18.07 19.55 20.81 21.88

Income Tax 0.49 2.79 4.91 5.42 5.86 6.24 6.56

For calculating the income tax only the basic rate is considered. The surcharge has been ignored becau

-10.00 9.30 16.35 18.07 19.55 20.81 21.88

0.0 0.0 15.7 33.7 53.3 74.1 96.0


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Rs. In Million

8Y 9Y 10Y

20.96 21.04 21.09

6.55 6.55 6.55

27.51 27.60 27.65

4.72 4.06 3.49

22.79 23.54 24.16

22.79 23.54 24.16

6.84 7.06 7.25

e it tends to very from year to year.

22.79 23.54 24.16

118.7 142.3 166.4


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Vegetron Limited

Profitability Estimates ( Estimates of Working Results)

1Y 2Y 3Y 4YInstalled Capacity(TPA) 2880 2880 2880 2880

Utilised Capacity( TPA) 50% 60.0% 70.0% 70%

Sales Price Per KG Rs. 120 120 120 120

Cost of Raw Materials (on Sales) 65% 65% 65% 65%

Cost of Power (on Sales) 4% 4% 4% 4%

Wages ( After 3rd Y raise rate) 5%

Factory Overhead(After 1y raise) 6%

Administation Expenditure 1 1 1 1

Selling Expenditure(on Sales) 10% 10% 10% 10%

Interest on short-term bank borrowing 13% 13% 13% 13%

Rate of Dividiend 0% 12% 12% 14%

Particulars 1Y 2Y 3Y 4Y

Installed Capacity(TPA) 2,880.00 2,880.00 2,880.00 2,880.00

Production( Tonnes) 1,440.00 1,728.00 2,016.00 2,016.00

A Sales Realisation (Net of excise) 172.80 207.36 241.92 241.92

B Cost of Production

Raw materials 112.32 134.78 157.25 157.25

Power 6.91 8.29 9.68 9.68

Wages & Slaries 9.00 10.00 12.00 12.60

Factory overheads 0.50 0.53 0.56 0.60

C Administration and Selling

expenditures

Administration expedniture 1.00 1.00 1.00 1.00

Selling Expenses 17.28 20.74 24.19 24.19

D Gross Profit Before Interest 25.79 32.02 37.24 36.61

E Total Financial Expenses

Interest on term Loans 7.20 7.20 6.53 5.63

Interest on Bank Borrowing 2.72 3.26 3.80 3.80

F Depreciation ( As per Com.Law) 0.97 6.55 6.55 6.55

G Operating Profit 14.90 15.00 20.36 20.63

H Preliminary Expenses

Written Off 0.40 0.40 0.40 0.40

I Profit/Loss Before Tax 14.50 14.60 19.96 20.23


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J Provision for Tax 0.49 2.79 4.91 5.42

K Profit after Tax 14.01 11.81 15.05 14.81

L Less : Dividend 0.00 6.00 6.00 7.00

M Retained Profit 14.01 5.81 9.05 7.81

N Add.: Depreciation & Pre.Exp.W.Off

i. Depreciation 0.97 6.55 6.55 6.55

ii. Preliminary Exp.written off 0.40 0.40 0.40 0.40

O Net Cash Accruals (M+Ni+Nii) 15.38 12.77 16.01 14.76

Operating Cash Inflow (K+Ni+Nii) 15.38 18.77 22.01 21.76

Project AppraisalCost of Equity 15%

NPV 50.40

IRRDSCR

Avg. DSCR

Cash Flows 50.40

0.10 50.40

0.11 50.40

0.12 50.40

0.13 50.40

0.14 50.40

0.15 50.40

0.16 50.40

0.17 50.40

0.18 50.40

0.19 50.40

0.20 50.40


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5Y 6Y 7Y 8Y 9Y 10Y2880 2880 2880 2880 2880 2880

70% 70% 70% 70% 70% 70%

120 120 120 120 120 120

65% 65% 65% 65% 65% 65%

4% 4% 4% 4% 4% 4%

1 1 1 1 1 1

10% 10% 10% 10% 10% 10%

13% 13% 13% 13% 13% 13%

14% 16% 16% 18% 18% 20%

5Y 6Y 7Y 8Y 9Y 10Y

2,880.00 2,880.00 2,880.00 2,880.00 2,880.00 2,880.00

2,016.00 2,016.00 2,016.00 2,016.00 2,016.00 2,016.00

241.92 241.92 241.92 241.92 241.92 241.92

157.25 157.25 157.25 157.25 157.25 157.25

9.68 9.68 9.68 9.68 9.68 9.68

13.23 13.89 14.59 15.32 16.08 16.89

0.63 0.67 0.71 0.75 0.80 0.84

1.00 1.00 1.00 1.00 1.00 1.00

24.19 24.19 24.19 24.19 24.19 24.19

35.94 35.24 34.51 33.74 32.93 32.07

4.73 3.83 2.93 2.03 1.13 0.23

3.80 3.80 3.80 3.80 3.80 3.80

6.55 6.55 6.55 6.55 6.55 6.55

20.86 21.06 21.23 21.36 21.44 21.49

0.40 0.40 0.40 0.40 0.40 0.40

20.46 20.66 20.83 20.96 21.04 21.09

Rs. In Million


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5.86 6.24 6.56 6.84 7.06 7.25

14.60 14.42 14.26 14.12 13.98 13.85

7.00 8.00 8.00 9.00 9.00 10.00

7.60 6.42 6.26 5.12 4.98 3.85

6.55 6.55 6.55 6.55 6.55 6.55

0.40 0.40 0.40 0.40 0.40 0.40

14.55 13.37 13.22 12.07 11.94 10.80

21.55 21.37 21.22 21.07 20.94 20.80

50.40 0.60 0.61 0.62 0.63 0.64 0.65 0.66

0.10 90.31 82.33 74.34 66.36 58.38 50.40 42.4136644

0.11 90.31 82.33 74.34 66.36 58.38 50.40 42.4136644

0.12 90.31 82.33 74.34 66.36 58.38 50.40 42.4136644

0.13 90.31 82.33 74.34 66.36 58.3792325 50.40 42.4136644

0.14 90.31 82.33 74.34 66.36 58.3792325 50.40 42.4136644

0.15 90.31 82.33 74.34 66.36 58.3792325 50.40 42.4136644

0.16 90.31 82.33 74.34 66.36 58.38 50.40 42.41

0.17 90.31 82.33 74.34 66.36 58.38 50.40 42.4136644

0.18 90.31 82.33 74.34 66.36 58.38 50.40 42.4136644

0.19 90.31 82.33 74.34 66.36 58.38 50.40 42.4136644

0.20 90.31 82.33 74.34 66.36 58.38 50.40 42.4136644


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0.67 0.68 0.69 0.70

34.43088 26.4481 18.46531 10.48253

34.43088 26.4481 18.46531 10.48253

34.43088 26.4481 18.46531 10.48253

34.43088 26.4481 18.46531 10.48253

34.43088 26.4481 18.46531 10.48253

34.43088 26.4481 18.46531 10.48253

34.43 26.4481 18.46531 10.48253

34.43088 26.4481 18.46531 10.48253

34.43088 26.4481 18.46531 10.48253

34.43088 26.4481 18.46531 10.48253

34.43088 26.4481 18.46531 10.48253


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Vegetron Limited

Projected Cash Flow Statements

Particulars

Construc-

tionPeriod

1Y 2Y 3Y 4Y 5Y 6Y 7Y

Source of Funds

Share Issue 50.00

Profit Before taxation

with Interest added

back 24.42 25.06 30.29 29.65 28.99 28.29 27.55

Depreciation 0.97 6.55 6.55 6.55 6.55 6.55 6.55

Preliminary Expenses

Written off 0.40 0.40 0.40 0.40 0.40 0.40 0.40

Increase in Secured

medium and long term

borrowings 60.00

Increase in bank

Borrowing for Working

Capital 20.90 4.15 4.19

Increase in the state

Govt's Special Incentive

Loan 11.00

Total ( A ) 121.00 46.69 36.17 41.43 36.61 35.94 35.24 34.51

Disposition of Funds

Capital Expenditure

for the Project 110.50

Decrease in Secured

medium and long term

borrowings 0.00 3.75 7.50 7.50 7.50 7.50 7.50

Increase in Working

Capital 29.42 5.85 5.89

Preliminary Expen. 2.00

Interest on LT Borrow 7.20 7.20 6.53 5.63 4.73 3.83 2.93

Interest on WC 2.72 3.26 3.80 3.80 3.80 3.80 3.80


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Taxation 0.49 2.79 4.91 5.42 5.86 6.24 6.56

Dividiend Paid 0.00 6.00 6.00 7.00 7.00 8.00 8.00

Total ( B ) 112.50 39.83 28.85 34.63 29.35 28.89 29.37 28.79

Opening Balance of

Cash in Hand and at

Bank 8.50 15.36 22.68 29.48 36.74 43.79 49.67

Net Surplus/Deficit(A- 8.50 6.86 7.32 6.80 7.26 7.05 5.87 5.72

Closing Balance of

Cash in hand and at 8.50 15.36 22.68 29.48 36.74 43.79 49.67 55.39

bank


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Rs. In Million

8Y 9Y 10Y

26.78 25.97 25.12

6.55 6.55 6.55

0.40 0.40 0.40

33.74 32.93 32.07

7.50 7.50 3.75

2.03 1.13 0.23

3.80 3.80 3.80


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6.84 7.06 7.25

9.00 9.00 10.00

29.16 28.49 25.02

55.39 59.96 64.40

4.57 4.44 7.05

59.96 64.40 71.45


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Vegetron Limited

Projected Balance Sheets

1Y 2Y 3Y

Liabilities

Share Capital 50.00 50.00 50.00 50.00

Reserve & Surplus 14.01 19.83 28.88

Secured Loan

Term Loan 60.00 60.00 56.25 48.75Working capital adv. 20.90 25.05 29.24

Unsecured Loans

State Govt. Loan 11.00 11.00 11.00 11.00

Current Liabilities and Provisions

Trade credit 4.68 5.62 6.55

Total 121.00 160.59 167.74 174.42

Assets

Fixed Assets

Gross block 110.50 110.50 110.50 110.50

Less : Accumulatad Depreciation 0.97 7.52 14.08

Net Fixed assets 110.50 109.53 102.98 96.42

Investments

Carrent Assets, Loans & Advances

Raw materials 14.04 16.85 19.66

Stock in process 0.32 0.38 0.45

Finished Goods 5.34 6.38 7.46

Bcok debts 14.40 17.28 20.16Cash and Bank Balance 8.50 15.36 22.68 29.48

Miscellaneous Expenditure and

Losses

Preliminary expenses 2.00 1.60 1.20 0.80

Total 121.00 160.59 167.74 174.42

At the end ofconstruction

period


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Rs. In Million

4Y 5Y 6Y 7Y 8Y 9Y 10Y

50.00 50.00 50.00 50.00 50.00 50.00 50.00

36.69 44.28 50.70 56.97 62.09 67.07 70.91

41.25 33.75 26.25 18.75 11.25 3.75 0.0029.24 29.24 29.24 29.24 29.24 29.24 29.24

11.00 11.00 11.00 11.00 11.00 11.00 11.00

6.55 6.55 6.55 6.55 6.55 6.55 6.55

174.73 174.82 173.74 172.51 170.13 167.61 167.70

110.50 110.50 110.50 110.50 110.50 110.50 110.50

20.63 27.19 33.74 40.30 46.85 53.41 59.96

89.87 83.31 76.76 70.20 63.65 57.09 50.54

19.66 19.66 19.66 19.66 19.66 19.66 19.66

0.45 0.45 0.45 0.45 0.45 0.45 0.45

7.46 7.46 7.46 7.46 7.46 7.46 7.46

20.16 20.16 20.16 20.16 20.16 20.16 20.1636.74 43.79 49.67 55.39 59.96 64.40 71.45

0.40 0.00 (0.40) (0.80) (1.20) (1.60) (2.00)

174.73 174.82 173.74 172.51 170.13 167.61 167.70


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Vegetron Case_7th Ed._Template_1.xls

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Transcript of Vegetron Case_7th Ed._Template_1.xls