Vegetron Limited

Key Assumptions
1. Duration of Construction period = 1 year
2. Company will operate for 300 days on dual shift, installed capacity =
3. Avg Sales Realisation per KG
4. RM Percentage
65%
4%
5. Power Percentage
6. Wages and salaries
Cap Utl

Working costs
R/m per sales
Power per sales
Sal / wages (Rs mn)
Fy O/h Xp (Rs mn)
Admn Xp (Rs mn)
Selling Xp (% to sales)

Depreciation rates
For company purposes

Building
Plant n machinery
MFA

50%

60%

65%
4%
9.00
0.50
1.00
10%

65%
4%
10.00
0.53
1.00
10%

Current Assets requirement

3.34%
7.42%
7.42%

For IT purposes

Building
All else

2880
120

10.00%
15.00%

R/M inc consumables

Stock in process
Finished goods
Book Debt

tpa

70%

70%

70%

70%

70%

70%

70%

70%

65%
4%
12.00
0.56
1.00
10%

65%
4%
12.60
0.60
1.00
10%

65%
4%
13.23
0.63
1.00
10%

65%
4%
13.89
0.67
1.00
10%

65%
4%
14.59
0.71
1.00
10%

65%
4%
15.32
0.75
1.00
10%

65%
4%
16.08
0.80
1.00
10%

65%
4%
16.89
0.84
1.00
10%

ssets requirement

(months)

1.50
0.03
0.50
1.00

Loan covenants
Term Loan

all equal instalments

no of instalments
instalments per year
interest rate on O/s

16
2
12%

Working Capital

interest rate on O/s

13%

Vegetron Limited
Cost of the Project and Means of Finance
Cost of the Project
Land and Site Development
Building
Plant and Machinery
Miscellaneous Fixed Assets
Preliminary Expenses
Pre-Operative Expenses (incl IDC)
Contingency Margin
Working Capital Margin
Total
Means of Finance
Share Capital
Term Loans
SG Special Incentive Loan
Total

(Rs Mn)
10.00
15.00
62.00
4.00
2.00
11.50
8.00
8.50
121.00

50.00
60
11.00
121.00

Share
11%
16%
68%
4%

Capitalisation of Costs
Pre-Op Cntngncy
11.50
8.00
1.26
0.88
1.90
1.32
7.84
5.45
0.51
0.35

Total

Preliminary expenses: will be incurred even if the project

is not set up like fees for incorprn, viability study, ROA.

12.14
18.21
75.29
4.86
2.00

Pre operative: Before operation i.e interest during

construction
Contingency: Events not envisaged. Not planned for
Working capital margin: Own contribution

8.50
121.00

Pre ops and contigency are soft expenses and they have
to be allocated over the tangible expenses.
Law allows this thing.
Preliminary expense has been amortised later .

ed even if the project

ability study, ROA.

nterest during

Not planned for

enses and they have

tised later .

Vegetron Limited
Cost of the Project and Means of Finance
Cost of the Project
(Rs Mn)
Land and Site Development
Building
Plant and Machinery
Miscellaneous Fixed Assets
Preliminary Expenses
Pre-Operative Expenses (incl IDC)
Contingency Margin
Working Capital Margin
Total

10.00
15.00
62.00
4.00
2.00
11.50
8.00
8.50
121.00

START

Means of Finance
Share Capital
Term Loans
SG Special Incentive Loan
Total

61.00
60
0.00
121.00

DUR
1
3
2
6
1
1
12
12

FINISH
3
5
8
2
1
12
1
1

3
7
9
7
1
12
12
12

1
3.33
0.00
0.00
0.00
2.00
0.96
0.00
0.00
6.29

6.29
0.00
6.29

The bank will finance the proportion in which the equity is place
the money only after the entire equity is put in.

Escrow account
Concurrent auditor
Pre disbursement visit in month 6
Additional visit in moth 9
Closure visit in month 12
Post completion audits
Working capital is taken in the 13th month and stays for the ye
The next calculation is for next year.

2
3.33
0.00
7.75
0.00
0.00
0.96
0.00
0.00
12.04

3
3.33
3.00
7.75
0.00
0.00
0.96
0.00
0.00
15.04

4
0.00
3.00
7.75
0.00
0.00
0.96
0.00
0.00
11.71

5
0.00
3.00
7.75
0.00
0.00
0.96
0.00
0.00
11.71

6
0.00
3.00
7.75
2.00
0.00
0.96
0.00
0.00
13.71

7
0.00
3.00
7.75
2.00
0.00
0.96
0.00
0.00
13.71

8
0.00
0.00
7.75
0.00
0.00
0.96
0.00
0.00
8.71

9
0.00
0.00
7.75
0.00
0.00
0.96
0.00
0.00
8.71

12.04
0.00

15.04
0.00

11.71
0.00

11.71
0.00

4.21
9.50

0.00
13.71

0.00
8.71

0.00
8.71

12.04

15.04

11.71

11.71

13.71

13.71

8.71

8.71

tion in which the equity is placed by the promoter. We assume that margin is 100 % from equity first i.e. tthe bank will put in
equity is put in.

13th month and stays for the year1.

10
0.00
0.00
0.00
0.00
0.00
0.96
0.00
0.00
0.96

11
0.00
0.00
0.00
0.00
0.00
0.96
0.00
0.00
0.96

12
0.00
0.00
0.00
0.00
0.00
0.96
8.00
8.50
17.46

0.00
0.96

0.00
0.96

0.00
17.46

0.96

0.96

17.46

. tthe bank will put in

14
10.00
15.00
62.00
4.00
2.00
11.50
8.00
8.50
121.00

15

16

17

18

19

20

Vegetron Limited
Term Loan Schedule
Year

12% interest rate

16 16 equally half yearly installments
1

ANNUAL
Loan Op Bal
Principal Repayment
Interest Payment
Loan Cl Bal

60.00
0.00
7.20
60.00

60.00
3.75
7.20
56.25

56.25
7.50
6.53
48.75

48.75
7.50
5.63
41.25

H1
Loan Op Bal
Principal Repayment
Interest Payment
Loan Cl Bal

60.00
0.00
3.60
60.00

60.00
0.00
3.60
60.00

56.25
3.75
3.38
52.50

48.75
3.75
2.93
45.00

H2
Loan Op Bal
Principal Repayment
Interest Payment
Loan Cl Bal

60.00
0.00
3.60
60.00

60.00
3.75
3.60
56.25

52.50
3.75
3.15
48.75

45.00
3.75
2.70
41.25

(Rs Mn)
5

10

41.25
7.50
4.73
33.75

33.75
7.50
3.83
26.25

26.25
7.50
2.93
18.75

18.75
7.50
2.03
11.25

11.25
7.50
1.13
3.75

3.75
3.75
0.23
0.00

41.25
3.75
2.48
37.50

33.75
3.75
2.03
30.00

26.25
3.75
1.58
22.50

18.75
3.75
1.13
15.00

11.25
3.75
0.68
7.50

3.75
3.75
0.23
0.00

37.50
3.75
2.25
33.75

30.00
3.75
1.80
26.25

22.50
3.75
1.35
18.75

15.00
3.75
0.90
11.25

7.50
3.75
0.45
3.75

0.00
0.00
0.00
0.00

Closing balance = open balance

principal repayment

open balance rincipal repayment

Vegetron Limited
Depreciation Schedule
Year

SLM
Building
Plant and Machinery
MFA
Total Annual Dep

18.21
75.29
4.86

3.34%
7.42%
7.42%

0.61
5.59
0.36
6.55

0.61
5.59
0.36
6.55

0.61
5.59
0.36
6.55

0.61
5.59
0.36
6.55

WDV
Building
Plant and Machinery
MFA
Total Annual Dep

18.21
75.29
4.86

10.00%
15.00%
15.00%

1.82
11.29
0.73
13.84

1.64
9.60
0.62
11.86

1.48
8.16
0.53
10.16

1.33
6.94
0.45
8.71

(Rs Mn)
5

10

0.61
5.59
0.36
6.55

0.61
5.59
0.36
6.55

0.61
5.59
0.36
6.55

0.61
5.59
0.36
6.55

0.61
5.59
0.36
6.55

0.61
5.59
0.36
6.55

1.20
5.89
0.38
7.47

1.08
5.01
0.32
6.41

0.97
4.26
0.27
5.50

0.87
3.62
0.23
4.72

0.78
3.08
0.20
4.06

0.71
2.62
0.17
3.49

2 methods to calculate WDV

depreciation.

to calculate WDV

Vegetron Limited
Working Capital Estimates
Year

Raw Materials
Stock In Process
Finished Goods
Book Debts
Total Current Assets
Margin for WC
Trade Credit
Bank Finance for WC

1.50
0.03
0.50
1.00
25.00%
0.50

14.04
0.32
5.34
14.40
34.10
8.53
4.68
20.90

16.85
0.38
6.38
17.28
40.89
10.22
5.62
25.05

19.66
0.45
7.46
20.16
47.72
11.93
6.55
29.24

19.66
0.45
7.48
20.16
47.75
11.94
6.55
29.26

(Rs Mn)
5

10

19.66
0.45
7.51
20.16
47.77
11.94
6.55
29.28

19.66
0.45
7.53
20.16
47.80
11.95
6.55
29.30

19.66
0.45
7.56
20.16
47.83
11.96
6.55
29.32

19.66
0.46
7.59
20.16
47.86
11.97
6.55
29.35

19.66
0.46
7.63
20.16
47.90
11.97
6.55
29.37

19.66
0.46
7.66
20.16
47.93
11.98
6.55
29.40

No. of months considered for

lending is the norms of lending

months considered for

norms of lending

Vegetron Limited
Tax Schedule
Year

Profit / Loss Before Tax

9.12

14.80

20.16

20.42

Add back SLM Depreciation

6.55

6.55

6.55

6.55

13.84

11.86

10.16

8.71

1.83

9.50

16.55

18.27

0.55

2.85

4.97

5.48

Less WDV Depreciation

Gross Total Income
Income Tax

30%

(Rs Mn)
5

10

20.66

20.85

21.02

21.14

21.23

21.27

6.55

6.55

6.55

6.55

6.55

6.55

7.47

6.41

5.50

4.72

4.06

3.49

19.74

21.00

22.07

22.97

23.72

24.34

5.92

6.30

6.62

6.89

7.12

7.30

Vegetron Limited
Estimates of Profitability
Year
Installed Capacity
6.7
Capacity Utilisation
19296.0 Production
Sales Realisation

120

Cost of Production
Raw Materials
Power
Wages and Salaries
Factory Overheads

2880.0
50.0%
1440.00

2880.0
60.0%
1728.00

2880.0
70.0%
2016.00

2880.0
70.0%
2016.00

172.8

207.4

241.9

241.9

112.32
6.91
9.00
0.50

134.78
8.29
10.00
0.53

157.25
9.68
12.00
0.56

157.25
9.68
12.60
0.60

Admn & Selling Exp

Admn Expenses
Selling Expenses

1.00
17.28

1.00
20.74

1.00
24.19

1.00
24.19

Gross Profit

25.79

32.02

37.24

36.61

7.20
2.7

7.20
3.3

6.53
3.8

5.63
3.8

6.55

6.55

6.55

6.55

Financial Expenses
Interest on Term Loans
Interest on WorCap Loans
Depreciation

13%

Operating Profit

9.32

15.00

20.36

20.62

Preliminary Expenses Written Off

0.2

0.2

0.2

0.2

Profit / Loss Before Tax

9.1

14.8

20.2

20.4

Provision for Tax

0.5

2.9

5.0

5.5

12.0

15.2

14.9

0.0

6.0

6.0

7.0

8.57

5.95

9.19

7.94

6.6

6.6

6.6

6.6

Profit After Tax

Dividend
Retained Profit
Depreciation

8.6

Prel Exp Wo
Net Cash Accrual

0.2

0.2

0.2

0.2

15.3

12.7

15.9

14.7

(Rs Mn)
5

10

2880.0
70.0%
2016.00

2880.0
70.0%
2016.00

2880.0
70.0%
2016.00

2880.0
70.0%
2016.00

2880.0
70.0%
2016.00

2880.0
70.0%
2016.00

Production in tonnes
Sales : Rs/Kg
Use SLM depreciation

241.9

241.9

241.9

241.9

241.9

241.9

157.25
9.68
13.23
0.63

157.25
9.68
13.89
0.67

157.25
9.68
14.59
0.71

157.25
9.68
15.32
0.75

157.25
9.68
16.08
0.80

157.25
9.68
16.89
0.84

1.00
24.19

1.00
24.19

1.00
24.19

1.00
24.19

1.00
24.19

1.00
24.19

35.94

35.24

34.51

33.74

32.93

32.07

4.73
3.8

3.83
3.8

2.93
3.8

2.03
3.8

1.13
3.8

0.23
3.8

6.55

6.55

6.55

6.55

6.55

6.55

20.86

21.05

21.22

21.34

21.43

21.47

0.2

0.2

0.2

0.2

0.2

0.2

20.7

20.9

21.0

21.1

21.2

21.3

5.9

6.3

6.6

6.9

7.1

7.3

14.7

14.6

14.4

14.2

14.1

14.0

7.0

8.0

8.0

9.0

9.0

10.0

7.73

6.55

6.40

5.25

5.11

3.97

6.6

6.6

6.6

6.6

6.6

6.6

Depreciation and preliminary e

are non cash expenses and so
back to retained earnings.

0.2

0.2

0.2

0.2

0.2

0.2

14.5

13.3

13.2

12.0

11.9

10.7

Production in tonnes
Rs/Kg
Use SLM depreciation
Depreciation and preliminary expenses
are non cash expenses and so it is added
back to retained earnings.

Vegetron Limited
Projected Cashflow Statement
Year
Sources of Funds
Share Issue
Profit Before Tax with Interest Added Back
Depreciation
Prel Exp Added Back
Incr in Secured MT and LT Borrowing
Incr in BB for WC
Special Loans from SG
Total Sources
Uses of Funds
Project Capex
Increase in WorCap
Preliminary Expenses

50.0
0

0.0
19.0
6.6
0.2
0.0
20.90
0.0

0.0
25.3
6.6
0.2
0.0
4.15
0.0

0.0
30.5
6.6
0.2
0.0
4.19
0.0

60
11.00
121.0

36.2

41.4

0.0
29.4
0.0

0.0
5.85
0.0

0.0
5.89
0.0

Decr in Secured MT and LT Borrowing

Interest on TL
Interest on BB WC

0.0
7.2
2.7

3.75
7.2
3.3

7.50
6.5
3.8

Taxation
Dividend Payments

0.5
0.0

2.9
6.0

5.0
6.0

39.9

28.9

34.7

Total Uses

110.5

46.7

2.0

112.5

Opening Cash Balance

Net Surplus / Deficit
Closing Cash

8.5

15.3

22.6

8.5

6.8

7.3

6.7

8.50

15.30

22.56

29.30

(Rs Mn)
4

10

0.0
29.9
6.6
0.2
0.0
0.02
0.0

0.0
29.2
6.6
0.2
0.0
0.02
0.0

0.0
28.5
6.6
0.2
0.0
0.02
0.0

0.0
27.8
6.6
0.2
0.0
0.02
0.0

0.0
27.0
6.6
0.2
0.0
0.02
0.0

0.0
26.2
6.6
0.2
0.0
0.03
0.0

0.0
25.3
6.6
0.2
0.0
0.03
0.0

36.6

36.0

35.3

34.5

33.8

33.0

32.1

0.0
0.03
0.0

0.0
0.03
0.0

0.0
0.03
0.0

0.0
0.03
0.0

0.0
0.03
0.0

0.0
0.03
0.0

0.0
0.04
0.0

7.50
5.6
3.8

7.50
4.7
3.8

7.50
3.8
3.8

7.50
2.9
3.8

7.50
2.0
3.8

7.50
1.1
3.8

3.75
0.2
3.8

5.5
7.0

5.9
7.0

6.3
8.0

6.6
8.0

6.9
9.0

7.1
9.0

7.3
10.0

29.4

29.0

29.5

28.9

29.3

28.6

25.1

29.3

36.5

43.5

49.3

54.9

59.4

63.8

7.2

7.0

5.8

5.6

4.5

4.4

7.0

36.49

43.47

49.28

54.92

59.42

63.77

70.74

Vegetron Limited
Projected Balance Sheets
Year
Liabilities
Share Capital
Reserves and Surplus
Term Loans
Special Loans from SG
Current Liabs and Provisions
Trade Credit
Working capital advance
Total Sources
Assets
Fixed Assets
Gross Block
Less : Acc Dep
Net Block
Current Assets
RM
Stock in Process
Finished Goods
Book Debts
Cash and bank Balance
Misc Exp Not written off
Preliminary Expenses
Total Uses

50.00
0.00
60.00
11.00

50.00
8.57
60.00
11.00

50.00
14.52
56.25
11.00

50.00
23.72
48.75
11.00

50.00
31.66
41.25
11.00

4.68
20.90
155.15

5.62
25.05
162.44

6.55
29.24
169.25

6.55
29.26
169.72

110.50
0.00
110.50

110.50
6.55
103.95

110.50
13.11
97.39

110.50
19.66
90.84

110.50
26.22
84.28

8.50

14.04
0.32
5.34
14.40
15.30

16.85
0.38
6.38
17.28
22.56

19.66
0.45
7.46
20.16
29.30

19.66
0.45
7.48
20.16
36.49

2.00

1.80

1.60

1.40

1.20

121.00

155.15

162.44

169.25

169.72

TRUE

TRUE

TRUE

TRUE

TRUE

121.00

(Rs Mn)
5

10

50.00
39.39
33.75
11.00

50.00
45.95
26.25
11.00

50.00
52.34
18.75
11.00

50.00
57.59
11.25
11.00

50.00
62.70
3.75
11.00

50.00
66.67
0.00
11.00

6.55
29.28
169.97

6.55
29.30
169.05

6.55
29.32
167.97

6.55
29.35
165.74

6.55
29.37
163.38

6.55
29.40
163.62

110.50
32.77
77.73

110.50
39.33
71.17

110.50
45.88
64.62

110.50
52.44
58.06

110.50
58.99
51.51

110.50
65.55
44.95

19.66
0.45
7.51
20.16
43.47

19.66
0.45
7.53
20.16
49.28

19.66
0.45
7.56
20.16
54.92

19.66
0.46
7.59
20.16
59.42

19.66
0.46
7.63
20.16
63.77

19.66
0.46
7.66
20.16
70.74

1.00

0.80

0.60

0.40

0.20

0.00

169.97

169.05

167.97

165.74

163.38

163.62

TRUE

TRUE

TRUE

TRUE

TRUE

TRUE