Project Report

For

Setting up

TMT BARS

Manufacturing

Unit

Acknowledgement

I am overwhelmed in all humbleness and gratefulness to acknowledge my

gratitude to all those who have helped me to put these facts, into a concrete

study.

I am very thankful to Prof. Nityesh Bhatt for his valuable help. He was always

there to give me a patient hearing and correct all my doubts. With the help

of his valuable suggestions, guidance and encouragement, I was able to

carry out this study. I am equally grateful to Mr. Sandip Agrawal owner of

Sefo Industries and various other people also who helped me in making this

project.

Moreover I would also like to thank all faculty and IMNU for giving me

platform to make a B Plan and do this study.

Punit K Agrawal

104140

IMNU

FB&E

2

INDEX

Sr. No. Particulars

Page No.

1 Management Feasibility 41.1 Executive Summary/ Project Brief 41.2 Promoters Background 61.3 Board Of Director 61.4 Entrepreneur & Business Trait Match 61.5 Mc Kinsey’s 7s Framework 7

2 Introduction 102.1 Definition 102.2 Comparison 102.3 Features Of TMT Bars 112.4 Uses 122.5 Product Range/Specifications 132.6 Manufacturing Process/Technology 142.8 Raw Material 152.9 Marketing For Finished Products 15

3 Industry Demand 17

3.1Indian Steel Sector: Development And Potential 17

3.2 Sector Structure/Market Size 22

3.3Production, Consumption and Growth of Steel 23

3.4 Market Outlook 253.5 Marketing & Selling Arrangements 27

3.6Competitive position in Industry (Using Porter's Framework) 28

3.7 Industry SWOT 303.8 Idea SWOT 31

4 Proposed Equipment’s For The Project 325 Financial Assessment of The Project 34

5.1 Introduction 345.2 Basis And Assumptions 34

5.2.1 Installed Capacity & Utilization 345.2.3 Operating Norms 355.2.4 Deprecation Rates 365.2.5 Depreciation Rates 365.2.6 Working Capital Norms 365.2.7 Income Tax Rates 37

5.3 Feasibility Analysis-Projections 376 Financial Feasibility 38

3

7 References 90

1 Management Feasibility

1.1 Executive Summary/ Project Brief

I would like to setup production unit of TMT bars as my family business deals also in

trading of TMT bars so it would be a backward integration of our firm as we would

start manufacturing it itself instead of trading only.

We are having a good hold on the market and we are also having market knowledge

about the market and we are also having a good network and knowledge of it so we

can go in backward integration and start producing itself and set a dealer network

in areas where we are not operating or having a client base.

This plant will have a of one lack tonne so we are if first phase not going for a so

much big unit and not to small also so that we can surface the capacity and demand

at same time.

PROJECT AT A GLANCE

1. Location: Kerala GIDC, Ahmedabad

2. Nature of Project: Mild Steel Long Products

(TMT Bars)

3. Project Cost ( Rs. In Lacs): Rs.2825 Lacs

4. Means of Finance ( Rs. In Lacs)

a. Promoter’s contribution Rs.1325 Lacs

4

b. Bank Finance Rs.1500 Lacs

5. Installed Capacity One Lac Ton per Annum

6. Debt Equity Ratio 1:1:13

7. Promoter’s Margin (%) 47%

8. Repayment Period (Years) 5 Years (excluding 1 Year, 6 Month

moratorium)

9. Pay Back Period: 3 Years & 9 Months

10. Employment (Nos.) 12 Skilled, 70 Unskilled (All Local

Employment)

11. DSCR 1.80

12. BEP (Cash) 55 %

BEP (Total) 64 %

13. FIXED Assets Coverage 1.5

14. IRR (Pre Tax) 26 %

IRR (Post Tax) 20 %

5

1.2 Promoter’s Background

Background

I am basically pursuing my M.B.A. (FB&E) in Nirma University. Our family business

is of construction material like cement, steel, construction fibber, construction

chemicals.

As the business is stable and has limitation of growth so we needed to go for

diversification. So keeping that in mind and links in construction field I decided to

enter in construction field.

Complimentary Skills

I have tried to work out for construction field from long time from long time so has

done many researches on: -

I even worked out what should be rate of land of particular locality.

Even I have done research on the requirements of the customers and demand and

supply of their requirements.

1.3 Board of Directors

Sr.

No.

Name Designation Qualification Exp.( Yrs. )

1 KAMAL AGARAWAL Chair man B.Com 29

2 PUNIT AGRAWAL M.D. B.B.A 1

1.4 Entrepreneur & Business Traits Match

Manufacturing is such a field in which you need to be working very hard as it is

labour intensive industry and we need to stand and see that production is made as

per the requirement and sizes are made as per the dealers requirement. I can stand

on site for long hours and can even be on site till late nights. As this field requires a

great dedication on field.

6

1.5 7S Framework to analyse the different aspects

of the organization.

ORGANISATION ANALYSIS USING MCKINSEY’S 7S

FRAMEWORK

Strategy:

Firm will emphasize on building long term win-win relation between the firm and its

clients by sustaining relations, both personal and professional. Strategy to cater the

good dealers it will be taken into care all falsities required by the dealers. Site will

be near Kerala GIDC. Customization till certain level will be also provided to attract

the customers.

7

Structure:

Organization is designed to assist free flow of information and power within the

organization. The de-layered structure acts as a facilitator for free flow of

communication, which adds flexibility and dynamism to the functioning of this team

based organization.

Systems:

The owners form rules and regulations, procedures and practices that are followed

to carry out tasks in the organization. These include both the formal and informal

systems, which complement an organization structure.

Style:

Participative and transparent style of leadership will give the organization an

informal but professional outlook. The functioning of the firm will follow a top down

flow but when it comes to innovation and craftsmanship, the flow hits 360 degree.

Staff:

The staffs, as the pillars of this firm, takes an upfront position and paves way for the

professional and qualified delivery of the business. Training and assistance is will be

provided consistently to keep the employees competent and technically precise.

Skills:

Technical skills and other qualified communication skills will be required to cater the

client. As the quality of skills is what makes the firm differentiate from its

competitors and is given due diligence. Firm will has strengthened in a number of

business areas. Firm will try to achieve more of specialized skills so as to make the

firm more of a professionally run organization.

Shared values:

8

To provide one’s clients with the best services, which enables them to understand

and influence the business environment in which, they operate. Firm will believe in

working as a business partner sharing the objectives and vision of the client firm.

This will helps the firm to customize its services and achieve their client’s strategic

objective in the most efficient manner.

2. Introduction

2.1. Definition

Thermo mechanically treated steel also known as TMT steel can be described

as new-generation-high-strength steel having superior properties such as weld

ability, strength, and ductility and bend ability meeting highest quality standards at

international level. Under thermo mechanical treatment of bars, the steel bars are

made to pass through a specially designed water-cooling system where these are

kept for such a period that outer surface of bars becomes colder while the core

remains hot. This creates a temperature gradient in the bars. When the bars are

taken out of the cooling system, the heat flows from the core to the outer surface

causing further tempering of steel bars thereby helping them in attaining higher

yield strength of steel.

TMT steel bar is a newer variety of steel for construction purpose. Earlier people

have been using TOR Steel for concrete reinforcement. Thermo Mechanically

Treated bars (TMT bars) give you several advantages over the other types of steel:

Twisting operation is not involved in the production of the TMT steel bar, so no

residual stresses involved in that, which in turn increases the corrosion resistance.

2.2. Comparison

Mild Steel Verses TMT

Mild Steel: Normal Strength or Ordinary Wieldable Steel: These trade terms are

often used interchangeably to describe standard carbon steels used for structural

purposes, a typical example being AS3679 grade 250 or grade 300.

9

The term ‘mild steel’ is also applied commercially to carbon steels not covered by

standard specifications. Carbon content of this steel may vary from quite low levels

up to approximately 0.3%. Generally, commercial ‘mild steer’ can be expected to be

readily wieldable and have reasonable cold bending properties but to specify ‘mild

steel’ is technically inappropriate and should not be used as a term in engineering.

Mild steel is the most common form of steel as its price is relatively low while it

provides material properties that are acceptable for many applications. Low carbon

steel contains approximately 0.05–0.15% carbon and mild steel contains 0.16–

0.29% carbon, therefore it is neither brittle nor ductile. Mild steel has a relatively

low tensile strength, but it is cheap and malleable; surface hardness can be

increased through carburizing.

2.3 Features of TMT Bars:

•Better ductility and malleability

•High yield strength and toughness

•More bonding strength

•Earthquake resistance

•Corrosion resistance

•High thermal resistance 

•Economical and safe in use

•No loss in strength at welded joints

•Ordinary electrodes used for welding the joints.

Rust and Corrosion Resistance: The main reason for failure in any reinforcement

concrete structure is due to corrosion of TOR Steel in the concrete, where this steel

corrodes in existence of chloride ions. TMT Bars, due to its Thermo- mechanical

treatment are very highly rust and corrosion resistant and is best suited in the

humid and coastal states like West Bengal and Orissa.

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Bendability: TMT Bars have lower carbon content and higher elongation, which

makes them bendable as well as re-bendable. With internal diameters of 1D and 4D,

TMT Bars can withstand bending & re-bending respectively. (D = Diameter). This

feature helps in working with TMT Bars.

Weildability: TMT Bars do not loose strength at welded points and hence can be

easily welded. The process of welding TMT Bars doesn't require pre-heating or post-

heating as well. Pre-welded meshes can be used for construction avoiding time

consuming manual bindings due to good weldability feature.

Fire Resistance: The presence of tempered martensitic layer in the outer surface

of TMT Bars helps them retain significant strength at extremely high temperatures.

This makes TMT Bars comparatively safe in case of fire hazards where temperature

rises up to 600º C.

2.4 Uses:

TMT Bars, Thermo mechanically treated bars are high strength deformed steel bars

used in reinforced cement concrete (RCC) work manufactured with the help of

advancement of technology. TMT bars are latest production in MS steel bars and

have superior properties such as strength, ductility, welding ability, bending ability

and highest quality standards at international level.

TMT Bars are much superior to conventional TOR Steel by virtue of their various

engineering properties and can be used for Residential Buildings, Bridges, Drums,

Industrial Establishment and all types of concrete reinforcement purposes.

The project designers use thermo mechanically treated bars (TMT) in place of tor

steel and even in TMT, the choice is increasingly focussed on that with higher

tensile strength (Fe-500 in lieu of Fe-415) and high corrosion resistant TMT (HCRM)

which is specially meant for use in coastal areas.

Affordable

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Since TMT Bars have higher tensile strength as compared to TOR steel, the support

required is low, leading to low cost of construction. Therefore, TMT Bars are more

affordable and save steel upto 20% in construction.

2.5 Product Range/Specifications

The TMT Bars to be manufactures would be of the following Diameter:

8 mm

10 mm

12 mm

16 mm

20 mm

25 mm

32 mm

40 mm.

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Product Specifications

The product shall be produced as per ISI specifications ONLY. The material shall be

produced, in accordance with IS: 1786 – 2008, in Fe 415, Fe 500, Fe 415D, Fe 500D

and Fe 550 grades. The material will be supplied in full range of diameters required

i.e. 8 mm to 40 mm. With availability of all grades and sizes, we are sure to capture

maximum coverage of the market.

2.6 Manufacturing Process / Technology:

The reinforcement bar rolling is being designed for production of assured quality

product only. The mill will have sequence mix of Roughing, Intermediate and

Continuous Mills for quality measurements. Because of this a progressive reduction

process, the bars produced will have uniform size and mechanical properties all

along the length of the product.

The TMT bars are then subjected to heat treatment in three successive stages,

through International Process.

In first stage, Quenching starts with the hot roll bar leaving the final stand and

immediately being quenched by a special Water Spraying System. The process

results in formation of “Martensite” in the outer surface of bar while core remains

austenitic. In second stage the bar leaves the water quenching line and is exposed

to air. The heat flux from the still hot core reheats the outer surface within

structure. The Martensite formed in the first stage is thus subject to self- tempering

giving a structure called “Tempered Martensite” which is strong and tough. The

core is still austenitic at this stage. The third and final stage of “Atmospheric

cooling” takes place on the cooling bed, where the austenitic core is transformed to

ferrite pearlite ductile core. The final structure, thus, consists of a combination of

strong outer layer of tempered martensite and a ductile core of ferrite-pearlite.

The rebar shall be produced in the range of 8 mm to 40 mm diameter. Our Rolling

Mill will be technical superior with the billet-heating furnace for uniform heating.

Because of its unique stand sequence design, the dimensional tolerances and top

class upper surface is achieved. Our TMT bars, manufactured through advanced

international process, will possess an excellent combination of strength and

ductility.

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The team of experienced and highly skilled engineers and technicians will exercise

stringent quality control measures during entire production process.

2.8 Raw Materials

The raw materials required for production of proposed products are MS Ingots and

Billets. The same is available in abundance at Kutch, Alang / Bhavnagar, Silvassa,

Daman, Raipur through & Maharashtra. Moreover there is a good proximity with

other markets like Hospet and Raipur –Chattisgarh belt, wherein the production of

MS Billets is in abundance. Further Gujarat is having adequate access to Imports

Kandla & Mundra Ports.

2.9 Marketing for Finished Products:

The plant is being setup in close proximity of Ahmedabad to get the full access to

Ahmedabad’s market, the biggest steel market for TMT Bars in Gujarat. Moreover, it

has very good connectivity and infrastructure for entire Gujarat. Sitting at

Ahmedabad, provides added advantage over other locations of steel manufacturing

in Gujarat.

Till 2005, the Gujarat demands for steel was mainly met with supplies form other

states. However, with setup of various Industries in Kutch and Silvassa / Daman, the

availability of steel improved in the state of Gujarat.

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At present, the total demand of Reinforcement Steel Bars (TMT Bars) for Gujarat

state is close to 1.25 lacs MTs per month. Ahmedabad, Rajkot, Surat and Vadodara

contribute to maximum consumption of steel, to the tune of 0.80 lacs MTs per

month. The other potential market places are Dahej, Jamnagar etc. All the market

places are in close proximity and better connected with Ahmedabad and it will be

added advantage to us as compared to other producers based at Kutch and

Silvassa. We, based at Ahmedabad, will be able to deliver the goods faster than

those producers. Secondly, the transportation shall be lesser from Ahmedabad,

compared to Kutch and Silvassa and the landed cost, hence, to the customer shall

be lesser in our case.

3 Industry Demand

3.1 INDIAN STEEL SECTOR: DEVELOPMENT AND

POTENTIAL

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At the time of independence in 1947, India had only three steel plants – the TATA

Iron & Steel Company, the Indian Iron and Steel Company and Visveswaraya Iron &

Steel Ltd and a few electric arc furnace-based plants. The period till 1947 thus

witnessed a small but viable steel industry in the country, which operated with a

capacity of about 1 million tonne and was completely in the private sector. From the

fledgling one million tonne capacity status at the time of independence, India has

now risen to be the 5th largest crude steel producer in the world and the largest

producer of sponge iron.

As per official estimates, the Iron and Steel Industry contributes around 2% of the

Gross Domestic Product (GDP) and its weight in the Index of Industrial Production

(IPP) is 6.20%. From a negligible global presence, the Indian steel industry is now

acknowledged for its product quality, reflected by trends of rising exports.

As it traversed its long history during the past 60 years, the Indian steel industry

has responded to the challenges of the highs and lows of business cycles. The first

major change came during the first three Five-Year Plans (1952-1970) when in line

with the economic order of the day, the iron and steel industry was earmarked for

state control. From the mid-50s to the early 1970s, the Government of India set up

large integrated steel plants in the public sector at Bhilai, Durgapur, Rourkela and

Bokaro.

The policy regime governing the industry during these years involved:

Capacity control measures: Licensing of capacity, reservation of large-scale

capacity creation for the public sector units.

A dual-pricing system: Price and distribution control for the integrated, large-

scale producers in both the private and public sectors, while the rest of the

industry operated in a free market.

Quantitative restrictions and high tariff barriers.

Railway freight equalisation policy: To ensure balanced regional industrial

growth.

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Controls on imports of inputs, including technology, capital goods and

mobilisation of finances and exports.

The large-scale capacity creation in the public sector during these years contributed

to making India the 10th largest steel producer in the world as crude steel

production grew markedly to nearly 15 million tonnes in the span of a decade from

a mere 1 million tonne in 1947. But the trend could not be sustained from the late

1970’s onwards, as the economic slowdown adversely affected the pace of growth

of the Indian steel Industry. However, this phase was reversed in 1991-92, when the

country replaced the control regime by liberalisation and deregulation in the

context of globalisation. The provisions of the New Economic Policy initiated in the

early 1990’s impacted the Indian steel industry in the following ways:

Large-scale capacities were removed from the list of industries reserved for the

public sector. The licensing requirement for additional capacities was also

withdrawn subject to locational restrictions.

Private sector came to play a prominent role in the overall set-up.

Pricing and distribution control mechanisms were discontinued.

The iron and steel industry was included in the high priority list for foreign

investment, implying automatic approval for foreign equity participation up to

50%, subject to the foreign exchange and other stipulations governing such

investments in general.

Freight equalisation scheme was replaced by a system of freight ceiling.

Quantitative import restrictions were largely removed. Export restrictions were

withdrawn.

The system, therefore, underwent marked changes. For steel makers, opening up of

the economy opened up new channels of procuring their inputs at competitive rates

from overseas markets and also new markets for their products. It also led to

greater access to information on global operations/techniques in manufacturing.

This, along with the pressures of a competitive global market, increased the need to

enhance efficiency levels so as to become internationally competitive. The steel

consumer, on the other hand, was now able to choose items from an array of goods,

be it indigenously manufactured or imported.

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This freedom to choose established the sovereignty of the consumer and galvanised

steel producers to provide products/service levels in tune with the needs of the

consumers. With the opening up of the economy in 1992, the country experienced

rapid growth in steel making capacity. Essar Steel, Ispat Industries, Jindal Group etc

set up large integrated steel plants in the Private Sector. TATA Steel also expanded

its capacity. To sum up, some of the notable milestones in the period were:

Emergence of the private sector with the creation of around 9 million tonnes of

steel capacity based on state-of-the-art technology.

Reduction/ dismantling of tariff barriers, partial float of the rupee on trade

account, access to best-practice of global technologies and consequent

reduction in costs – all these enhanced the international competitiveness of

Indian steel in the world export market.

After 1996-97, with the steady decline in the domestic economy’s growth rate, the

Indian steel industry’s pace of growth slowed down and in terms of all the

performance indicators – capacity creation, production, consumption, exports and

price/ profitability – the performance of the industry fell below average.

In foreign trade, Indian steel was also subjected to anti-dumping/ safeguard duties

as most developed economies invoked non-tariff barriers. Economic devastation

caused by the Asian financial crises, slowdown of the global economy and the

impact of glut created by additional supplies from the newly steel-active countries

(the steel-surplus economies of erstwhile USSR) were the negative factors.

However, from the year 2002, the global industry turned around, helped to a great

extent by China, whose spectacular economic growth and rapidly-expanding

infrastructure led to soaring demand for steel, which its domestic supply could not

meet. At the same time, recoveries in major markets took place, reflected by

increase in production, recovery of prices, return of profitability, emergence of new

markets, lifting of trade barriers and finally, rise in steel demand – globally. The

situation was no different for the Indian steel industry, which by now had acquired a

degree of maturity, with emphasis on intensive R&D activities, adoption of

18

measures to increase domestic per capita steel consumption and other market

development projects, import substitution measures, thrust on export promotion

and exploring global avenues to fulfil input requirements.

The rapid pace of growth of the industry and the observed market trends called for

certain guidelines and framework. Thus was born the concept of the National Steel

Policy, with the aim to provide a roadmap of growth and development for the Indian

steel industry. The National Steel Policy (NSP) was announced in November 2005 as

a basic blueprint for the growth of a self-reliant and globally competitive steel

sector. The long-term objective of the National Steel Policy is to ensure that India

has a modern and efficient steel industry of world standards, catering to diversified

steel demand. The focus of the policy is to attain levels of global competitiveness in

terms of global benchmarks of efficiency and productivity. The national policy seeks

to facilitate removal of procedural and policy bottlenecks that affect the availability

of production inputs, increased investment in research and development, and

creation of road, railway and port infrastructure. The policy focuses on the domestic

sector, but also envisages a steel industry growing faster than domestic

consumption, which will enable export opportunities to be realised.

If we were to pause for a moment to think about the growth of human civilization,

we would find that the pace of social and economic growth has been closely linked

to the proficiency with which people have been able to use and shape materials.

Steel is one such material that has played an important role in the development of

mankind in the last century. Today, it is difficult to imagine a world without steel.

Steel has become vital to our everyday life. It is at the root of the quality of life that

each of us enjoys today, helping to shelter us, to feed us and to facilitate both our

working day and leisure activities. We depend on steel for almost everything from

our houses and buildings, the cards we drive, roads, bridges, agricultural

equipment, machines, the list is endless.

Steel is a versatile, constantly developing material that underspins all

manufacturing activity. Even if a product is not made entirely from steel, it will

undoubtedly have steel as a component at some point in the manufacturing

process. There are currently more than 3,500 different grades of steel with many

19

different properties – physical, chemical, environmental, 75% of which have been

developed in the last 20 years. Steel is also an environment friendly material and

has the distinction of being the most recycled material in the world today.

Today, consumption of steel is also regarded as an indicator of development of a

nation. Per capita steel consumption is now universally accepted as an index of

economic development of a nation. Given its role, steel has established itself as the

backbone of any economy.

The steel industry in India has always been on the ascent, owing to the abundant

availability of raw materials like iron ore, limestone and coal, besides relatively

cheap labour, which is a major cost advantage. It is noteworthy to mention that

India is the sixth largest producer of iron ore and the tenth largest producer of

crude steel in the world. Steel is a core sector industry and the demand for steel

affects the economy of the country.

Periodic researches and surveys have produced highly optimistic results. The

demand for steel is growing and will continue to grow in leaps and bounds. The

cross-cultural influence on India is getting pronounced, as a result of which a more

enhance lifestyle is on the cards. With cities getting wider and mini townships

mushrooming all over, the real estate industry will keep booming, and hence the

demand for steel will only keep getting higher in the years to come. The consistent

need for steel will also be form sectors like automobiles, consumer durables and

infrastructure.

National Steel Policy 2005 envisages steel consumption in the country to go up from

37 million tones presently to 110 million tones by 2020.

Above all, the per capita consumption of steel in India is at around 45 kg, which is

well behind the global average of 150 kg. with other Asian countries like China (330)

kg), Malaysia (405 Kg) and South Korea (925 Kg) having a higher per capita

consumption. As such India’s growth potential promises to be undisputedly good.

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3.2 Sector structure/Market Size

The Indian steel industry entered into a new development stage from 2005-06,

resulting in India becoming the 5th largest producer of steel globally. Producing

about 55 million tones (MT) of steel a year, today India accounts for a little over 7

percent of the world’s total production.

India is the only country across the world to post a positive overall growth in crude

steel production at 1.10 per cent for the quarter ended March 2010. The recovery in

steel production has been aided by the improved sales performance of steel

companies. The steel sector grew by 5.7 per cent in May 2010.

3.3 Production, consumption and growth of steel

Steel production reaches 28.49 million tonne (MT) in April-September 2009. Further,

India, which recorded production of 22.14 MT of steel during April-August 2009, is

likely to emerge as the world’s third largest steel producer in the current year,

according to Gautam Kumar Basak, Executive Secretary, Joint Plant Committee

(JPC).

The National Steel Policy has a target for taking steel production up to 110 MT by

2019-20.Nonetheless, with the current rate of ongoing Greenfield and brown field

projects, the Ministry of Steel has projected India’s steel capacity is expected to

touch 124.06 MT by 2011-12. in fact, based on the status of memoranda of

understanding (MoUs) signed by the private producers with the various state

governments, India’s steel capacity is likely to be 293 MT by 2020.

The National Steel Policy 2005 had projected consumption to grow at 7% based on a

GDP growth rate of 7-7.5% and production of 110 million tonnes by 2019-2020.

These estimates will be largely exceeded and it is envisaged that in the next five

years, demand will grow at a considerably higher annual average rate of over 10%

as compared to around 7% growth achieved between 1991-92 and 2005-06. It has

21

been assessed that, on a ‘most likely scenario’ basis, the steel production capacity

in the country by the year 2011-2012 will be nearly 124 million tonnes.

The table below shows the trend in production for sale, import, export and

consumption of total finished steel (alloy + non-alloy) in the country during the last

six years:

Year Total finished steel (alloy + non-alloy) (‘000 tonnes)

Production for sale Import Export Consumption

2003-04 40709 1753 5207 33119

2004-05 43513 2293 4705 36377

2005-06 46566 4305 4801 41433

2006-07 52529 4927 5242 46783

2007-08 56075 7029 5077 52125

2008-09 56393 5775 3750 51850

Source: JPC

India’s steel consumption rose by 5.7 per cent to 26.49 Mt in the first six months of

the current fiscal over the same period a year ago on account of improved demand

from sectors like automobile and consumer durables.

A Credit Suisse Group study states that India’s steel consumption will continue to

grow by 16 per cent annually till 2012, fuelled by demand for construction projects

worth US$ 1 trillion.

The scope for rising to total consumption of steel is huge, given that per capital

steel consumption is only 35 kg – compared to 150 kg across the world and 250 kg

in China.

Steel players like JSW Steel and Essar Steel are increasing their focus on opening up

more retail outlets pan India with growth in domestic demand. JSW Steel currently

has 50 such steel retail outlets called JSW Shoppe and is targeting to increase it to

200 by March 2010. They expect at least 10-15 per cent of their total production to

be sold by their retail outlets.

22

Essar Steel, which currently has over 300 retail outlets across the country, plans to

set up 5,000 outlets of various formats soon. It expects to sell 3Million Tonnes of

steel though the retail route in two years.

A host of steel companies have lined up major investment proposals. Furthermore,

with an expanding consumer market, the Indian steel industry is likely to receive

huge domestic and foreign investments.

According to the Investment Commission of India, the Indian steel industry is

likely to receive huge domestic and foreign investments.

Tata steel has raised US$ 500 million by issuing ‘global depository receipts’

(GDRS) aiming at expansion of its Jamshedpur plant and overseas mining

projects.

Steel companies have committed US$ 122.50 million for setting up sponge

iron units in Koppal and Bellary in Karnataka.

SAIL will invest US$ 724.12 million to set up a 4-million tonne per annum

steel mill at its Bhilai Steel Plant.

Uttam Galva Steel Plans a capital expenditure of US$ 62.8 million – US$ 104.6

million over the next two years for setting up of a 60 MW power plant. The

power plant will help reduce its production costs.

Government Initiative

Subsequent to the recent fall in international prices of commodities and to protect

Indian producers, the Indian government has announced some changes in customs

duty rates, which were effective from November 2008.

The government has removed full exemption of customs duty on some industrial

and agricultural commodities. Iron and steel products like pig iron, spiegeleisen,

semi – finished products, flat products and long products are now subject to a basic

custom duty of 5 per cent ad –valorem.

23

The Indian government plans to invest over US$ 350 billion in industries related to

infrastructure and construction which will give a fillip to the steel sector.

Moreover, in the Union Budget 2009-10, the government has made a 23 per cent

hike in allocation for highway development and US$ 1.034 billion increase in

budgetary support to Railways which will further promote the steel industry.

3.4 Market Outlook

Road Ahead

While the demand for steel will continue to grow in traditional sectors such as

infrastructure, construction, housing, automotive, steel tubes and pipes, consumer

durables, packaging, and ground transportation, specialized steel will be

increasingly used in hi-tech engineering industries such as power generation,

petrochemical, fertilizers, etc. The new airports and railway metro projects will

require a large amount of stainless steel.

According to an estimate, with the growing need for oil and gas transportation

infrastructure, a US$ 118 billion opportunity is waiting to be tapped by steel

manufacturers in the next five years. Indian steelmakers are set to make the most

of booming global demand for steel pipes and tubes with the government

withdrawing the 10 per cent duty on the exports of these products. According to a

study by ICICI Direct. Indian steel companies are likely to get 19 per cent of the

total global demand in the years to come.

Urban Areas:

The present steel consumption per capita per annum is about 30 kg in India,

compared to 150 kg in the world, and 350 kg in the developed world. 2 The

estimated urban consumption per capita per annum is around 77 kg in the country,

expected to reach approximately 165 kg in 2019-20, implying a CAGR of 5 percent.

Apart from the anticipated growth in the construction, automobile, oil and gas

transportation, and infrastructure sectors of the economy, conscious promotion of

24

steel usage among architects, engineers and students by the Institute of Steel

Development and Growth (INSDAG) and the large producers will drive this additional

consumption. Steps would be taken to encourage usage of steel in bridges, crash

barriers, flyovers and building construction. Benefits of steel usage would be added

to the technical education curricula in the country.

Rural Areas:

The rural consumption of steel in India remains at around 2 kg per capita per

annum, primarily because steel is perceived to be expensive among the village

folks. Based on the promotional efforts mentioned above, and an active focus on

opening new block level rural stock points, a target is set for raising the per capita

rural consumption of steel to 4 kg per annum by 2019-20, implying a CAGR of 4.4

percent.

Exports:

Although the focus of Indian steel industry is on the domestic market, export will be

another window on the demand side. The growth of exports of steel from India has

been around 10 percent per annum over the past decade. That speaks for the

international cost competitiveness of the steel sector. It takes assiduous effort to

create, and hold on to export markets. While the business decision to export will

depend on the prevailing relative prices, the Government would encourage strategic

alliances with buyback arrangements and dedicated export production through

100% export-oriented units. A growth rate of around 13 percent per annum is

envisaged up to 2019-20.

Present growth scenario and future outlook

India ranks as the fifth largest producer of crude steel in the world. Domestic crude

steel production grew at a compounded annual growth rate of 7 per cent during

2004-05 to 2008-09. The increase in production came on the back of capacity

expansion, mainly in the private sector plants, and higher utilisation rates. This

growth was driven by both capacity expansion (from 47.99 million tonnes in 2004-

05 to approximately 64 million tonnes in 2008-09) and improved capacity

utilisation. India, the world’s largest producer of direct reduced iron (DRI) or sponge

25

iron, is also expected to maintain its lead in the near future. Sponge iron production

grew at a CAGR of 16% to reach a level of 20.80 million tonnes in 2008-09

compared to 12.36 million tonnes in 2004-05. India is expected to become the

second largest producer of steel in the world by 2015-16, provided all requirements

for fresh capacity creation are met.

3.5 Marketing & Selling Arrangements

Further this is backward integration of the group so around the group itself likely

consumes 10 to 15 %.

Selling will be done through dealers network and it will be formed as per the target

basis only.

3.6 Competitive position in industry (Using Porter’s

Framework)

26

THREAT OF ENTRANTS-

The threat of entrants of new producer is very high because of less legal formalities

required by Indian Government to enter into business. Moreover, there are no such

great barriers out by government in this field. Access to the customers in this trade

is also not difficult because of growing industry and upcoming new areas and

buyers are very high.

There’s no great product differentiation in this industry which makes it easy for new

entrants to offer the same offering as provided by the present players but huge

amount of working capital is required as the builders and contractors buy in bulk

and generally trade on one to two weeks credit only. So some times, the non-

availability of huge amount of working capital may act as a hindrance for new

entrants in this industry.

THREAT OF SUBSTITUES-

Threat to substitution as such does not exist in this field.

POWER OF SUPPLIERS-

Supplier’s power is high as there’s a concentration of suppliers rather than a

fragmented source of supply of raw material.

BARGNING POWER-

Buyer’s power in this industry is high as the suppliers comprise and a large number

of small operators because the product required is undifferentiated till certain level

in a particular bracket. Moreover, buyer’s power is high as there’s no cost of

switching a supplier and there’s a threat of backward integration by the buyer i.e.

they can some times come to gather like a big family and their friends can come to

gather and get their construction done on their own.

COMPETITIVE RIVALRY-

In this industry, competitors are of roughly equal size so there’s intense competition

as one competitor attempts to gain dominance over other. Since the construction

27

industry is at its slump now and demand for constructed apartment in also facing

down fall stage welcoming entry of competitors who are fighting for their share. It

being an undifferentiated product, there’s little to stop customers switching

between competitors.

There is a huge competition in which make the organization to leave the profits of

margins in that deal to meet the competition. Even some times organization needed

to make loss in deal also as to get with the new customer or to maintain the old

one.

Sometimes scenario market is not good and there is no good demand may be due

to price or any other external factor then organization is not able meet the targets

set by the company which is adversely affected in form of payment of interest

which makes situation worse as already low sales above that low margins as a

result decrease in profits on per unit.

3.7 Industry SWOT:

Strength

Business is capable to do business is adverse condition and can get some

realization may it be less so owners need not need to worry as much as they

need to worry in other business and its product value will appreciate in

future so it creates a strength for business.

Weakness

Great capital and labour intensive industry so we need to employee great

capital and we need to take care very much and at same time it is very high

labour intensive so labour problems are very much in this industry.

Opportunity

Fast growing industry that to very high phase and it will grow as population

is growing and even building become old so they need to be renewed and

they need to be reconstructed so this industry will always grow.

28

Threat

As such no great threat is there in this industry other then recession, which

causes a great problem as during recession industry goes under great loss.

3.8 Idea SWOT:

Strength

Family background and have a good sources for supply of raw material and

good leakage with architects and consultants. Even family is have done real

estate business so have can get a fruitful knowledge about acquisition of

land and related issues.

Weakness

Low availability of finance as per the requirement of the project with the

promoters.

Opportunity

No truly identical product i.e. apartments are their in the area of Ahmedabad

and Gandhinagar.

Threat

Many competitors are their in this field as every now and then a new players

enter into the market and they work on very low margins.

Failure of the project may lead to great loss to the firm as huge capital will

be blocked in it.

29

4 Proposed Equipments for the project

(Figure in lakh)

Sr.

No Description Qty

Amoun

t

Ex.

Duty Vat Amount

A MILL EQUIPMENTS

470mm (18’’) Roughing Mill 3.Stand

320mm Intermediate Mill 3.Stand

290mm Intermediate Mill 4.Stand

275mm Conti. Finishing Mill 4.Stand

Total 530 54.59 23.38 607.97

B

Rotary Dividing Fly

Shear With Pinch Roll 52 5.356 2.29 59.65

C

TMT System for High

Strength Bar 85 8.755 3.75 97.51

D Twin Channel 60 6.18 2.65 68.83

E Cooling Bed 75 7.725 3.31 86.03

F Re-Heating Furnace 90 9.27 3.97 103.24

G

CNC Notching & Roll

Branding M/c. 40 4.12 1.76 45.88

H Cranes 80 8.24 3.53 91.77

I Air Oil & Water Pipe Line 7 0.72 0.31 8.03

30

Total 1019 104.96 44.96 1168.92

2 Electicals 210 21.63 9.27 240.90

3 Workshop Machinery 35 3.605 1.54 40.15

4 Testing Equipments 25 2.575 1.10 28.68

5

Erection & Installation & Site

Fabrication 30 30.00

Total 1319 1508.65

31

5 Financial Assessment of the Project

5.1 Introduction

This chapter deals with the financial viability of the proposed Mild Steel (TMT Bars)

manufacturing project.

A spreadsheet model has been developed for financial analysis with a view to

assess impact of changes in project parameters like project cost, capacity utilisation

levels, input costs and other parameters like to see changes in the course of

operation.

5.2 Basis and Assumptions

The important basis & assumptions, which are considered for the analysis, are

enlisted below:

5.2.1 Financing Structure

Debt Equity Ratio : 1:1.13 (Including Quasi Equity)

DSCR : 1.80

5.2.2 Installed Capacity & Utilisation

Design Capacity of the plant - 16 Tones per hour.

No. of hours per day - 20 Hours

Installed capacity p.a. of the plant – 16 X 20 X 315 days = 100800 MT

32

Table 5.1: Capacity Utilization

5.2.3 Operating Norms

Operating Norms outlined below have been arrived after carefully reviewing the

details by project promoters and discussions with professionals in the field:

Raw Materials Cost : Base Price of Rs 30,200/- per MT

Consumables : Rs 140/- per MT

Fuel Expenses : Rs 771/- Per MT

Power Expenses : Rs 440/- per MT

Labour Cost : Rs 245/- per MT

Selling Expenses : @0.95% of sales value

Packing Expenses : Rs 55/- per MT

33

Products MTPA Particulars Year 1 Year 2 Year 3 Year 4

MS Long

Products

100,0

00

Qty. (MT) 60,0

00

65,0

00

70,0

00

80,0

00

Capacity

in % 60% 65% 70% 80%

Sales Price : Rs 34000/- per MT for 12 MM

5.2.4 Financing Terms – Repayment & Interest

Interest on Term Loan : 13% per annum.

Repayment Terms : 7 Years including 18 months Moratorium,

Year First

Secon

d

Third

Fourth Five

Six

Seven

Repayment 225 300 300 300 300

Interest on Working Capital Loan : 13% per annum.

Bank Finance Available : 75% of Working Capital

5.2.5 Depreciation Rates

SLM WDV

Land & Building : 3.34% 10%

Main Plant and Equipment : 5.28% 15%

Furniture & Fixture : 10% 10%

5.2.6 Working Capital Norms

Raw Materials : 0.25 MONTH

Consumables & Spares : 1.00 MONTH

Working In Process : 3 Days

Finished Goods : 0.25 MONTH

Payables (Creditors) : 0.25 MONTH

Receivables (Debtors) : 0.50 MONTH

34

5.2.7 Income Tax Rates

The rate of tax has been computed on following basis:

Corporate Tax : 30.90 %

5.3 Feasibility Analysis -Projections

Feasibility analysis for 7 years operation has been worked out considering basis

mentioned above and results are presented in the form of following exhibits

(Exhibits enclosed at the end of this chapter):

6 Financial Feasibility

35

ANNEXURE - 1 (Rupees in Lacs)

COST OF PROJECT AND MEANS

OF FINANCE

Particulars Proposed Total

Amount Amount

C O S T O F P R O J E C T

Land and Site Development

Factory Land 83.00 83.00

Site Development 262.00 262.00

Buildings

Factory Building 195.00 195.00

Office Building & Utilities 174.00 174.00

Plant and Machineries

Indigenous Machineries 1145.00 1145.00

Tools, Jigs & Fixtures 40.00 40.00

Laboratory Equipment’s 40.00 40.00

Electrification, etc. 459.00 459.00

Installation, Erection, etc. 30.00 30.00

Motor Vehicles 20.00 20.00

Computers, Printers, etc. 3.00 3.00

Furniture & Fixtures 15.00 15.00

Other Misc. Assets 3.00 3.00

Preliminary & Pre-Operative Exp. 180.00 180.00

Provision for Contingencies 100.18 100.18

Total Capital Cost of Project 2749.18 2749.18

Margin Money for Working Capital 375.82 375.82

Total Cost of Project 3125.00 3125.00

MEANS OF FINANCE

36

Total Equity Share Capital 700.00 700.00

Long-term Loan

Term Loan From Bank 1675.00 1675.00

Total Long-term Loan 1675.00 1675.00

Unsecured Loans/Deposits

Agrawal group 750.00 750.00

Total Unsecured Loans/Deposits 750.00 750.00

Total Means of Finance 3125.00 3125.00

ANNEXURE - 2

PROFITABILITY AND NET CASH

ACCRUALS (Rupees in Lacs)

Particulars Operating Years

37

201

2-13

2013

-14

2014-

15

2015

-16

2016-

17

2017-

18

2018

-19

2019

-20

Revenue/Income/

Realization

Gross Sales Realization

9476.

45

23956.

86

27968.

02

31979.

24

32089.

53

32089.

53

32089.

53

32089.

53

Less: Excise

Duties/Levies

1215.

37

3072.5

1

3586.9

4

4101.3

9

4115.5

3

4115.5

3

4115.5

3

4115.5

3

Net Sales Realization

8261.

08

20884.

35

24381.

08

27877.

85

27974.

00

27974.

00

27974.

00

27974.

00

Total

Revenue/Income/Realizati

on

8261.

08

20884.

35

24381.

08

27877.

85

27974.

00

27974.

00

27974.

00

27974.

00

Expenses/Cost of

Products/Services/Items

Raw Material Cost

Indigenous

8010.

96

18843.

19

21977.

91

25112.

64

25077.

81

25077.

81

25077.

81

25077.

81

Total Net Consumption

8010.

96

18843.

19

21977.

91

25112.

64

25077.

81

25077.

81

25077.

81

25077.

81

Packing Material Cost 13.84 32.57 37.98 43.40 43.34 43.34 43.34 43.34

Sub Total of Net

Consumption

8024.

80

18875.

76

22015.

89

25156.

04

25121.

15

25121.

15

25121.

15

25121.

15

Consumables, Stores,

etc. 25.17 59.21 69.06 78.91 78.80 78.80 78.80 78.80

Employees Expenses 17.82 39.20 43.12 47.44 52.18 57.40 63.14 69.45

Fuel Expenses

188.7

9 444.07 517.95 591.82 591.00 591.00 591.00 591.00

Power/Electricity

Expenses

124.6

0 293.09 341.84 390.60 390.06 390.06 390.06 390.06

Depreciation

239.3

6 284.31 245.50 212.16 183.46 158.74 137.43 119.03

Repairs & Maintenance

Exp. 32.90 72.38 79.62 87.58 96.34 105.97 116.57 128.22

Other Mfg. Expenses 66.50 159.60 186.21 212.81 234.10 257.51 283.26 311.58

Total Cost of Manufacture

8719.

94

20227.

62

23499.

19

26777.

36

26747.

09

26760.

63

26781.

41

26809.

29

Add: Opening Stock -

W.I.P. 188.15 223.32 260.43 297.58 297.98 298.41 298.88

Less: Closing Stock -

W.I.P.

188.1

5 223.32 260.43 297.58 297.98 298.41 298.88 299.40

38

Net Cost of Output /

Services

8531.

79

20192.

45

23462.

08

26740.

21

26746.

69

26760.

20

26780.

94

26808.

77

Add: Op. Stock-Finished

Goods 456.08 560.02 653.86 747.50 751.05 752.19 753.38

Less: Cl. Stock-Finished

Goods

456.0

8 560.02 653.86 747.50 751.05 752.19 753.38 754.69

Cost of Output of Goods

Sold

8075.

71

20088.

52

23368.

24

26646.

57

26743.

15

26759.

05

26779.

75

26807.

47

Gross Profit

185.3

7 795.83

1012.8

4

1231.2

8

1230.8

5

1214.9

5

1194.2

5

1166.5

3

Administration Expenses 43.87 80.12 88.13 96.94 106.64 117.29 129.03 141.92

Financial Charges

Long Term Loan

106.7

8 211.34 182.42 146.82 111.23 75.64 40.04 6.67

Unsecured

Loans/Deposits 32.50 65.00 65.00 64.42 56.88 47.59 38.30 29.02

On Working. Capital

Borrowings 54.41 101.64 118.64 135.64 136.19 136.30 136.42 136.56

Lease Rentals / Others 3.00 3.00 3.00 3.00 3.00 3.00

Total Financial Charges

193.6

9 380.98 369.06 349.88 307.30 262.53 217.76 172.25

Selling Expenses 85.08 212.92 247.59 282.41 285.08 287.01 289.13 291.47

Total Cost of Sales

8398.

35

20762.

54

24073.

02

27375.

80

27442.

17

27425.

88

27415.

67

27413.

11

Net Profit Before Taxes

-

137.2

7 121.81 308.06 502.05 531.83 548.12 558.33 560.89

Tax on Profit 0.49 59.08 155.75 165.42 170.78 174.14 175.05

Net Profit After Taxes

-

137.2

7 121.32 248.98 346.30 366.41 377.34 384.19 385.84

Depreciation Added Back

239.3

6 284.31 245.50 212.16 183.46 158.74 137.43 119.03

Net Cash Accruals

102.0

9 405.63 494.48 558.46 549.87 536.08 521.62 504.87

39

ANNEXURE - 3

ASSSESSEMENT OF WORKING CAPITAL

REQUIREMENTS(Rupees in

Lacs)

Particulars

Stk.Pr

d.

Stk.Pr

d. Operating Years

1st

Year

2nd

Yr&+

201

2-13

2013

-14

201

4-15

2015

-16

201

6-17

201

7-18

201

8-19

201

9-20

CURRENT

ASSETS

Stocks on Hand

Raw Material Cost

Indigenous 0.33 0.33 M

440.6

0 518.19

604.3

9 690.60

689.6

4

689.6

4

689.6

4

689.6

4

Consumables,

Store 1.25 1.25 M 44.58 52.43 61.15 69.87 69.77 69.77 69.77 69.77

Work-in-

Process 4.00 4.00 D

188.1

5 223.32

260.4

3 297.58

297.9

8

298.4

1

298.8

8

299.4

0

Finished Goods 0.33 0.33 M

456.0

8 560.02

653.8

6 747.50

751.0

5

752.1

9

753.3

8

754.6

9

Receivables-

Domestic

Book Debts 0.30 0.30 M

369.2

3 466.72

544.8

6 623.01

625.1

6

625.1

6

625.1

6

625.1

6

BP / BD 0.20 0.20 M 69.73 88.13

102.8

9 117.65

118.0

5

118.0

5

118.0

5

118.0

5

Current

Expenses 1.00 1.00 M 61.80 71.44 82.21 93.15 97.03

101.2

7

105.9

3

111.0

6

Other Current Assets

Cash/Bank

Balances 3.09 178.53

316.4

2 471.77

645.3

9

806.9

4

953.7

8

1223.

20

Gross Wkg.

Capital

1633.

25

2158.7

8

2626.

21

3111.1

2

3294.

08

3461.

43

3614.

59

3890.

97

CURRENT

LIABILITIES

Sundry Creditors

Raw Material Cost

Indigenous 0.25 0.25 M 352.1 394.18 459.6 524.98 522.4 522.4 522.4 522.4

40

5 7 3 5 5 5

Consumables,

Store 0.50 0.50 M 17.83 20.97 24.46 27.95 27.91 27.91 27.91 27.91

Current

Expenses 0.50 0.50 M 30.90 35.72 41.10 46.57 48.52 50.64 52.97 55.53

Other Current

Liabilities

Installments Due Within

Next 12 M

on Long/Medium Term

Borrowings

139.5

8 279.17

325.6

0 372.03

372.0

3

372.0

3

232.4

3 92.86

Total Current Liabilities

540.4

6 730.04

850.8

3 971.53

970.8

9

973.0

3

835.7

6

698.7

5

Net Wkg. Capital(Tot.CA -

Tot.CL)

1092.

80

1428.7

4

1775.

38

2139.5

9

2323.

19

2488.

40

2778.

84

3192.

22

M.P.B.F. -Method

I

924.2

8

1280.9

3

1575.

74

1883.7

2

2021.

41

2145.

33

2258.

45

2463.

81

As Per Tandon

Com.Norm-Method II

824.0

6

1168.2

1

1444.

43

1733.8

4

1871.

70

1995.

08

2107.

62

2312.

34

Permissible Finance - D.P.

(%age)

Indigenous 75.00 DP 66.34 93.00

108.5

4 124.22

125.4

0

125.3

9

125.3

9

125.3

9

Consumables,

Stores, 75.00 DP 20.06 23.59 27.52 31.44 31.40 31.40 31.40 31.40

Work in

Process 75.00 DP

141.1

1 167.49

195.3

2 223.19

223.4

9

223.8

1

224.1

6

224.5

5

Finished Goods 75.00 DP

342.0

6 420.02

490.4

0 560.63

563.2

9

564.1

4

565.0

4

566.0

2

Book Debts 75.00 DP

276.9

3 350.04

408.6

5 467.26

468.8

7

468.8

7

468.8

7

468.8

7

BP / BD 10.00 DP 6.97 8.81 10.29 11.76 11.81 11.81 11.81 11.81

Total Bank Finance (DP

Method)

853.4

7

1062.9

5

1240.

71

1418.4

9

1424.

25

1425.

41

1426.

66

1428.

03

Bank Finance (Turnover

Method)

1895.

29

4791.3

7

5593.

60

6395.8

5

6417.

91

6417.

91

6417.

91

6417.

91

Bank Finance: As per DP

Method

853.4

7

1062.9

5

1240.

71

1418.4

9

1424.

25

1425.

41

1426.

66

1428.

03

Margin Money: (At

Commencement)

375.8

2 466.43

543.8

5

Margin Money:(incl.

Cash/Bk. Bal)

378.9

1 644.96

860.2

7

1093.1

3

1270.

97

1435.

02

1584.

61

1857.

05

41

% Margin Money - Net

Wkg. Capital 30.75 37.76 40.95 43.52 47.16 50.17 52.62 56.53

Current Ratio (No. Of

times) 1.30 1.43 1.49 1.54 1.63 1.71 1.78 1.91

42

ANNEXURE - 4

SOURCES AND DISPOSITION OF FUNDS(Rupees in

Lacs)

Particulars Constr.

Operating

Years

Perio

d

201

2-13

201

3-14

201

4-15

201

5-16

201

6-17

2017-

18

2

01

8-

19

201

9-20

SOURCES OF

FUNDS

Net Profit Before

Tax

with Interest

Charges

Added Back but

after

Depreciation

Provision 56.42

502.7

9

677.1

2

851.9

3

839.1

3 810.65

77

6.0

9

733.1

4

Equity Share

Capital

700.0

0

Depreciation

239.3

6

284.3

1

245.5

0

212.1

6

183.4

6 158.74

13

7.4

3

119.0

3

Incr.in Long-

term Loan

Proposed-Term

Loan Fr

1675.

00

Incr.in

Unsecured Loans

Proposed-

Agarwal

650.0

0

Incr.in Bank

Borrowing

for Working

Capital

853.4

7

209.4

8

177.7

6

177.7

8 5.76 1.16

1.2

5 1.37

Incr.in

Cur.Liabilities

400.8

8 50.00 74.36 74.26 -0.64 2.14

2.3

3 2.56

Total Sources of 3025. 1550. 1046. 1174. 1316. 1027. 972.69 91 856.1

43

Fund 00 13 58 74 13 71

7.1

0 0

DISPOSITIONS OF

FUNDS

P & P Expenses

Incr.in Capital

Expense

2748.

18

Incr.in Current

Assets

1630.

16

350.0

9

329.5

4

329.5

6 9.34 5.81

6.3

2 6.96

Decr.in Long-

term Loan

Proposed-Term

Loan Fr

139.5

8

279.1

7

279.1

7

279.1

7 279.17

27

9.1

7

139.5

7

Decr.in

Unsecured

Loans/D

Proposed-

Agarwal 46.43 92.86 92.86

92.

86 92.86

Interest/

Financial Exp.

193.6

9

380.9

8

369.0

6

349.8

8

307.3

0 262.53

21

7.7

6

172.2

5

Taxes on Profit 0.49 59.08

155.7

5

165.4

2 170.78

17

4.1

4

175.0

5

Total Disposition

2748.

18

1823.

85

871.1

4

1036.

85

1160.

79

854.0

9 811.15

77

0.2

5

586.6

9

Opening Balance

276.8

2 3.09

178.5

3

316.4

2

471.7

7 645.39

80

6.9

4

953.7

8

Net Surplus /

Deficit

276.8

2

-

273.7

3

175.4

4

137.8

8

155.3

5

173.6

3 161.54

14

6.8

5

269.4

2

Closing Balance

276.8

2 3.09

178.5

3

316.4

2

471.7

7

645.3

9 806.94

95

3.7

8

1223.

20

44

ANNEXURE - 5

PROJECTED BALANCE

SHEETS(Rupees in

Lacs)

Particulars Operating Years

2012-

13

2013-

14

2014-

15

2015-

16

2016-

17

2017-

18

2018-

19

2019-

20

Equity Share Capital 700.00 700.00 700.00 700.00 700.00 700.00 700.00 700.00

Surplus of Previous Year -15.95 233.03 579.33 945.74

1323.0

8

1707.2

7

Add: Net Profit After Taxes 248.98 346.30 366.41 377.34 384.19 385.84

Surplus at the End of Year 233.03 579.33 945.74

1323.0

8

1707.2

7

2093.1

1

Long-term Loan

Proposed-Term Loan From

Bank

1675.0

0

1535.4

2

1256.2

5 977.08 697.91 418.74 139.57

Unsecured Loans/Deposits

Proposed- Agarwal group 650.00 650.00 650.00 603.57 510.71 417.85 324.99 232.13

Bank Borrowing for Wkg.

Capital 853.47

1062.9

5

1240.7

1

1418.4

9

1424.2

5

1425.4

1

1426.6

6

1428.0

3

Current Liabilities

Sundry Creditors 400.88 450.87 525.23 599.50 598.86 601.00 603.33 605.89

Other Current Liabilities

Total Current Liabilities 400.88 450.87 525.23 599.50 598.86 601.00 603.33 605.89

Total of Liabilities 4279.3 4399.2 4605.2 4877.9 4877.4 4886.0 4901.8 5059.1

45

5 4 2 7 7 8 2 6

A S S E T S

Fixed Assets

Gross Block

2748.1

8

2748.1

8

2748.1

8

2748.1

8

2748.1

8

2748.1

8

2748.1

8

2748.1

8

Less: Depreciation to Date 239.36 523.67 769.17 981.33

1164.7

9

1323.5

3

1460.9

6

1579.9

9

Net Block

2508.8

2

2224.5

1

1979.0

1

1766.8

5

1583.3

9

1424.6

5

1287.2

2

1168.1

9

Current Assets

Stocks on Hand

1129.4

1

1353.9

5

1579.8

3

1805.5

5

1808.4

4

1810.0

1

1811.6

7

1813.5

0

Receivables 438.96 554.85 647.76 740.66 743.21 743.21 743.21 743.21

Other Current Assets 61.80 71.45 82.20 93.14 97.04 101.27 105.94 111.06

Cash and Bank Balances 3.09 178.53 316.42 471.77 645.39 806.94 953.78

1223.2

0

Total Current Assets

1633.2

6

2158.7

8

2626.2

1

3111.1

2

3294.0

8

3461.4

3

3614.6

0

3890.9

7

Miscellaneous Expenditure

(To The Extent Not W/Off) 137.27 15.95

Total of Assets

4279.3

5

4399.2

4

4605.2

2

4877.9

7

4877.4

7

4886.0

8

4901.8

2

5059.1

6

46

ANNEXURE - 6

PROFITABILITY RATIOS, DSCR, DEBT EQUITY, ETC. (Rupees in Lacs)

Particulars Operating Years 2012-

13 2013-

14 2014-

15 2015-

16 2016-

17 2017-

18 2018-

19 2019-

20

Profit Percentages to Net Sales

Gross Profit 185.37 795.831012.8

41231.2

81230.8

51214.9

51194.2

51166.5

3

% Of G.P. to Net Sales 2.24 3.81 4.15 4.42 4.40 4.34 4.27 4.17

Net Profit Before Taxes-

137.27 121.81 308.06 502.05 531.83 548.12 558.33 560.89

% of N.P.B.T. To Net Sales -1.66 0.58 1.26 1.80 1.90 1.96 2.00 2.01

Net Profit After Taxes-

137.27 121.32 248.98 346.30 366.41 377.34 384.19 385.84

% of N.P.A.T. To Net Sales -1.66 0.58 1.02 1.24 1.31 1.35 1.37 1.38

Debt Service Coverage Ratio

Funds Available to Service Debts

Net Profit After Taxes-

137.27 121.32 248.98 346.30 366.41 377.34 384.19 385.84

Depreciation Charges 239.36 284.31 245.50 212.16 183.46 158.74 137.43 119.03

Interest on LongTerm Loan 106.78 211.34 182.42 146.82 111.23 75.64 40.04 6.67

Lease Rentals and Charges

T o t a l 208.87 616.97 676.90 705.28 661.10 611.72 561.66 511.54

Debt Service Obligations

Repayment of LongTerm Loan 139.58 279.17 279.17 279.17 279.17 279.17 139.57

Interest on LongTerm Loan 106.78 211.34 182.42 146.82 111.23 75.64 40.04 6.67

Lease Rentals and Charges

T o t a l 106.78 350.92 461.59 425.99 390.40 354.81 319.21 146.24

D. S. C. R. (Individual) 1.96 1.76 1.47 1.66 1.69 1.72 1.76 3.50

D. S. C. R. (Cumulative) ..... 1.96 1.80 1.63 1.64 1.65 1.67 1.68 1.78

D. S. C. R. (Overall) ........ ........ ..........

1.78 ........ ......... ......... ......... .........

47

Parameters Initial

Equity Capital 700.00 700.00 700.00 700.00 700.00 700.00 700.00 700.00 700.00

Credit Balance in P &-

137.27 -15.95 233.03 579.33 945.741323.0

81707.2

72093.1

1 Unsecured Loans/Deposi 650.00 650.00 650.00 650.00 603.57 510.71 417.85 324.99 232.13

LongTerm Loan1675.0

01675.0

01535.4

21256.2

5 977.08 697.91 418.74 139.57

Total Liabilities4279.3

54399.2

44605.2

24877.9

74877.4

74886.0

84901.8

25059.1

6

DEBT EQUITY RATIO considering

i.e.Total Term Lia./NW Unsecured Dep. as Equity 1.24 1.38 1.15 0.79 0.52 0.32 0.17 0.05 0.00

Unsecured Dep. as Debt 3.32 4.13 3.19 2.04 1.24 0.73 0.41 0.19 0.08

Total Outside Lia./NW 6.60 5.43 3.94 2.81 1.96 1.42 1.04 0.81

Assets Turnover Ratio (x) 1.99 4.76 5.31 5.73 5.75 5.74 5.73 5.55

No. of Shares of 10.00 each70000

0070000

0070000

0070000

0070000

0070000

0070000

0070000

00

Earnings Per Share(EPS) (in Rs.) -3.92 1.73 3.56 4.95 5.23 5.39 5.49 5.51

Cash EPS (in Rs.) 2.92 5.79 7.06 7.98 7.86 7.66 7.45 7.21

Dividend Per Share(DPS) (in Rs.) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Payout Ratio (%Age) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Retained Earnings/Share (in Rs.) -3.92 1.73 3.56 4.95 5.23 5.39 5.49 5.51

Retained Earnings (%Age) 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

Book Value Per Share (in Rs.) 8.04 9.77 13.33 18.28 23.51 28.90 34.39 39.90

Debt Per Share (in Rs.) 33.21 31.22 27.23 22.58 17.27 11.95 6.64 3.32

Probable Mkt.Price/Share(in Rs.) -3.92 1.73 3.56 4.95 5.23 5.39 5.49 5.51

Price / Book Value (x) -0.49 0.18 0.27 0.27 0.22 0.19 0.16 0.14

Price Earnings Ratio (x) 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00

Yield (%Age) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

48

ANNEXURE - 7(Rupees in

Lacs)

BREAK EVEN ANALYSIS

Particulars Operating Years

2012-

13

2013-

14

2014-

15

2015-

16

2016-

17

2017-

18

2018-

19

2019-

20

BREAK EVEN

ANALYSIS

Total Value of

Output/Services 8741.88

20980.5

0

24477.2

5

27974.0

0

27974.0

0

27974.0

0

27974.0

0

27974.0

0

Variable Cost of Output/Services

Raw Material Cost 8010.96

18843.1

9

21977.9

1

25112.6

4

25077.8

1

25077.8

1

25077.8

1

25077.8

1

Other Material Cost

Packing Material Cost 13.84 32.57 37.98 43.40 43.34 43.34 43.34 43.34

Interest on Working

Capital 54.41 101.64 118.64 135.64 136.19 136.30 136.42 136.56

Sales

Commission/Variable

Exp 78.48 198.40 231.62 264.83 265.75 265.75 265.75 265.75

Less: W.I.P.

Adjustments 188.15 35.17 37.11 37.15 0.40 0.43 0.47 0.52

Total Variable Cost 7969.54

19140.6

3

22329.0

4

25519.3

6

25522.6

9

25522.7

7

25522.8

5

25522.9

4

Net Contribution 772.33 1839.86 2148.20 2454.63 2451.30 2451.22 2451.14 2451.05

49

Profit Volume Ratio

(%age) 8.83 8.76 8.77 8.77 8.76 8.76 8.76 8.76

Semi Fixed / Semi

Variable Exp. .

Semi Fixed Expenses

(Fixed)

Consumables,

Stores, etc. 0.72 0.72 0.72 0.72 0.72 0.72 0.72 0.72

Employees Expenses 4.73 4.73 4.73 4.73 4.73 4.73 4.73 4.73

Power/Electricity

Expenses 3.58 3.58 3.58 3.58 3.58 3.58 3.58 3.58

Fuel Expenses 5.42 5.42 5.42 5.42 5.42 5.42 5.42 5.42

Repairs &

Maintenance Exp. 8.74 8.74 8.74 8.74 8.74 8.74 8.74 8.74

Administration &

Selling Expense 21.90 21.90 21.90 21.90 21.90 21.90 21.90 21.90

Depreciation Charges 239.36 284.31 245.50 212.16 183.46 158.74 137.43 119.03

Deferred Expenses W/Off

Interest Charges 139.28 279.34 250.42 214.24 171.11 126.23 81.34 35.69

Less: Misc. Income

Total Net Fixed

Expenses 423.75 608.76 541.03 471.51 399.68 330.08 263.88 199.83

Total Net Cash Fixed

Expenses 184.39 324.45 295.53 259.35 216.22 171.34 126.45 80.80

Semi Fixed Exp.

(Semi-Fixed)

Employees Expenses 4.74 9.96 15.70 22.01

Repairs &

Maintenance Exp. 8.76 18.39 28.99 40.64

Other Mfg. Expenses 0.00 0.01 0.01 21.30 44.71 70.46 98.78

Administration &

Selling Expense 11.45 24.03 37.89 53.12

Total Semi Fixed Exp. 0.00 0.01 0.01 46.26 97.10 153.05 214.56

Semi Fixed Exp.

(Variable)

Consumables,

Stores, etc. 24.44 58.48 68.33 78.18 78.18 78.18 78.18 78.18

Employees Expenses 13.08 34.46 38.38 42.70 42.70 42.70 42.70 42.70

Power/Electricity

Expenses 121.01 289.50 338.25 387.01 387.01 387.01 387.01 387.01

Fuel Expenses 183.36 438.64 512.52 586.39 586.39 586.39 586.39 586.39

50

Repairs &

Maintenance Exp. 24.15 63.63 70.87 78.83 78.83 78.83 78.83 78.83

Other Mfg. Expenses 66.50 159.59 186.19 212.79 212.79 212.79 212.79 212.79

Administration &

Selling Expense 28.56 72.73 82.19 92.60 92.60 92.60 92.60 92.60

Total Semi Fixed

Expenses 461.13 1117.06 1296.76 1478.53 1478.53 1478.53 1478.53 1478.53

Total Expenses 884.88 1725.83 1837.81 1950.07 1924.48 1905.72 1895.47 1892.93

Total Cash Expenses 645.52 1441.52 1592.31 1737.91 1741.02 1746.98 1758.04 1773.90

Cash Break Even

Sales 7306.55

16438.1

2

18143.2

9

19805.9

5

19868.3

7

19937.0

4

20063.9

1

20245.6

6

Cash Margin of Safety 954.52 4446.22 6237.78 8071.89 8105.62 8036.95 7910.08 7728.33

Break Even Sales

10015.7

9

19680.1

8

20940.5

8

22223.8

2

21961.9

9

21748.6

2

21632.3

5

21604.1

5

Margin of Safety

-

1754.71 1204.16 3440.49 5654.02 6012.00 6225.37 6341.64 6369.84

At Maximum

Utilization: Year 4.00

(As % to Installed

Capacity)

Cash B.E.P.: % 56.83

B.E.P.: % 63.77

51

ANNEXURE - 8

PRE-TAX/POST-TAX IRR AND PAY-BACK

PERIOD(Rupees in

Lacs)

ParticularsOperating

Years

2012

-13

2013

-14

2014

-15

2015

-16

2016

-17

2017-

18

2018

-19

2019

-20

Post Tax INTERNAL RATE OF

RETURN

IN-FLOW of Funds

Net Profit After Taxes -137.27 121.32 248.98 346.30 366.41 377.34 384.19 385.84

Added Back

Depreciation Charges 239.36 284.31 245.50 212.16 183.46 158.74 137.43 119.03

P & P Expenses W/off

Interest Charges 139.28 276.34 247.42 211.24 168.11 123.23 78.34 35.69

Revenue Inflow of

Funds 241.37 681.97 741.90 769.70 717.98 659.31 599.96 540.56

Residual

Value-M/Money 285.81

Total Inflow of Funds 241.37 681.97 741.90 769.70 717.98 659.31 599.96 826.37

OUT-FLOW of Funds

Capital Out-flow of

Funds 3124.00

52

Present Value (PV)

Factor 0.86 0.75 0.64 0.56 0.48 0.41 0.36 0.31

Discounted Cash In-

Flow 208.40 508.39 477.52 427.74 344.50 273.14 214.60 255.21

Discounted Cash Out-

Flow 2697.28

Total PV:IN-Flow (all

yrs.) 2709.52

Total PV:OUT-Flow (all

yrs.) 2697.28

Effective Post-Tax IRR% 15.82

Pre Tax INTERNAL RATE OF

RETURN

IN-FLOW of Funds

Net Profit Before Taxes -137.27 121.81 308.06 502.05 531.83 548.12 558.33 560.89

Added Back

Depreciation Charges 239.36 284.31 245.50 212.16 183.46 158.74 137.43 119.03

P & P Expenses W/off

Interest Charges 139.28 276.34 247.42 211.24 168.11 123.23 78.34 35.69

Revenue Inflow of

Funds 241.37 682.46 800.98 925.45 883.40 830.09 774.10 715.61

Residual

Value-M/Money 285.81

Total Inflow of Funds 241.37 682.46 800.98 925.45 883.40 830.09 774.10 1001.42

OUT-FLOW of Funds

Capital Out-flow of

Funds 3124.00

Present Value (PV)

Factor 0.83 0.69 0.57 0.47 0.39 0.32 0.27 0.22

Discounted Cash In-

Flow 199.89 468.06 454.94 435.31 344.12 267.79 206.81 221.57

Discounted Cash Out-

Flow 2587.16

Total PV:IN-Flow (all

yrs.) 2598.53

Total PV:OUT-Flow (all

yrs.) 2587.16

53

Effective Pre-Tax IRR% 20.75

Un-Discounted

PAY BACK PERIOD:

4

YEARS

&

6.73

MONTH

S

ANNEXURE - 10

QUANTITATIVE DETAILS OF OUTPUT, SALES AND STOCKS(Rupees in

Lacs)

Particulars

UO

M Operating Years

2012-

13

2013-

14

2014-

15

2015-

16

2016-

17

2017-

18

2018-

19

2019-

20

Determined

Capacity P.A .

Of Products/Services

TMT Bars 8 MM MT 19700.00 19700.00 19700.00 19700.00 19700.00 19700.00 19700.00 19700.00

TMT Bars 10 MM MT 19700.00 19700.00 19700.00 19700.00 19700.00 19700.00 19700.00 19700.00

TMT BARS 12 MM MT 14775.00 14775.00 14775.00 14775.00 14775.00 14775.00 14775.00 14775.00

TMT BARS 16 MM MT 14775.00 14775.00 14775.00 14775.00 14775.00 14775.00 14775.00 14775.00

TMT BARS 20 MM MT 14775.00 14775.00 14775.00 14775.00 14775.00 14775.00 14775.00 14775.00

TMT BARS 25 MM MT 9850.00 9850.00 9850.00 9850.00 9850.00 9850.00 9850.00 9850.00

TMT BARS 32 MM MT 4925.00 4925.00 4925.00 4925.00 4925.00 4925.00 4925.00 4925.00

Achievable Efficiency/Yield %

of Products/Services/Items

TMT Bars 8 MM % 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

TMT Bars 10 MM % 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

TMT BARS 12 MM % 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

TMT BARS 16 MM % 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

TMT BARS 20 MM % 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

54

TMT BARS 25 MM % 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

TMT BARS 32 MM % 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

Net Usable Load/Capacity

of Products/Services/Items

TMT Bars 8 MM MT 19700.00 19700.00 19700.00 19700.00 19700.00 19700.00 19700.00 19700.00

TMT Bars 10 MM MT 19700.00 19700.00 19700.00 19700.00 19700.00 19700.00 19700.00 19700.00

TMT BARS 12 MM MT 14775.00 14775.00 14775.00 14775.00 14775.00 14775.00 14775.00 14775.00

TMT BARS 16 MM MT 14775.00 14775.00 14775.00 14775.00 14775.00 14775.00 14775.00 14775.00

TMT BARS 20 MM MT 14775.00 14775.00 14775.00 14775.00 14775.00 14775.00 14775.00 14775.00

TMT BARS 25 MM MT 9850.00 9850.00 9850.00 9850.00 9850.00 9850.00 9850.00 9850.00

TMT BARS 32 MM MT 4925.00 4925.00 4925.00 4925.00 4925.00 4925.00 4925.00 4925.00

No of Shifts

Wkg./Day 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00

No of Working

Days/Year 330.00 330.00 330.00 330.00 330.00 330.00 330.00 330.00

Expected Usage/Utilization of

Achievable Load/Capacity (%)

TMT Bars 8 MM % 50.00 60.00 70.00 80.00 80.00 80.00 80.00 80.00

TMT Bars 10 MM % 50.00 60.00 70.00 80.00 80.00 80.00 80.00 80.00

TMT BARS 12 MM % 50.00 60.00 70.00 80.00 80.00 80.00 80.00 80.00

TMT BARS 16 MM % 50.00 60.00 70.00 80.00 80.00 80.00 80.00 80.00

TMT BARS 20 MM % 50.00 60.00 70.00 80.00 80.00 80.00 80.00 80.00

TMT BARS 25 MM % 50.00 60.00 70.00 80.00 80.00 80.00 80.00 80.00

TMT BARS 32 MM % 50.00 60.00 70.00 80.00 80.00 80.00 80.00 80.00

Expected Usage/Output

TMT Bars 8 MM MT 4925.00 11820.00 13790.00 15760.00 15760.00 15760.00 15760.00 15760.00

TMT Bars 10 MM MT 4925.00 11820.00 13790.00 15760.00 15760.00 15760.00 15760.00 15760.00

TMT BARS 12 MM MT 3693.75 8865.00 10342.50 11820.00 11820.00 11820.00 11820.00 11820.00

TMT BARS 16 MM MT 3693.75 8865.00 10342.50 11820.00 11820.00 11820.00 11820.00 11820.00

TMT BARS 20 MM MT 3693.75 8865.00 10342.50 11820.00 11820.00 11820.00 11820.00 11820.00

TMT BARS 25 MM MT 2462.50 5910.00 6895.00 7880.00 7880.00 7880.00 7880.00 7880.00

TMT BARS 32 MM MT 1231.25 2955.00 3447.50 3940.00 3940.00 3940.00 3940.00 3940.00

Opening Stocks -

(Finished)

55

Of Products/Services/Items

TMT Bars 8 MM MT 270.88 325.05 379.23 433.40 433.40 433.40 433.40

TMT Bars 10 MM MT 270.88 325.05 379.23 433.40 433.40 433.40 433.40

TMT BARS 12 MM MT 203.16 243.79 284.42 325.05 325.05 325.05 325.05

TMT BARS 16 MM MT 203.16 243.79 284.42 325.05 325.05 325.05 325.05

TMT BARS 20 MM MT 203.16 243.79 284.42 325.05 325.05 325.05 325.05

TMT BARS 25 MM MT 135.44 162.53 189.61 216.70 216.70 216.70 216.70

TMT BARS 32 MM MT 67.72 81.26 94.81 108.35 108.35 108.35 108.35

Closing Stocks - (Finished)

Of Products/Services/Items

TMT Bars 8 MM MT 270.88 325.05 379.23 433.40 433.40 433.40 433.40 433.40

TMT Bars 10 MM MT 270.88 325.05 379.23 433.40 433.40 433.40 433.40 433.40

TMT BARS 12 MM MT 203.16 243.79 284.42 325.05 325.05 325.05 325.05 325.05

TMT BARS 16 MM MT 203.16 243.79 284.42 325.05 325.05 325.05 325.05 325.05

TMT BARS 20 MM MT 203.16 243.79 284.42 325.05 325.05 325.05 325.05 325.05

TMT BARS 25 MM MT 135.44 162.53 189.61 216.70 216.70 216.70 216.70 216.70

TMT BARS 32 MM MT 67.72 81.26 94.81 108.35 108.35 108.35 108.35 108.35

Expected Sales/Revenue/Income

Of Products/Services/Items

TMT Bars 8 MM MT 4654.12 11765.83 13735.82 15705.83 15760.00 15760.00 15760.00 15760.00

TMT Bars 10 MM MT 4654.12 11765.83 13735.82 15705.83 15760.00 15760.00 15760.00 15760.00

TMT BARS 12 MM MT 3490.59 8824.37 10301.87 11779.37 11820.00 11820.00 11820.00 11820.00

TMT BARS 16 MM MT 3490.59 8824.37 10301.87 11779.37 11820.00 11820.00 11820.00 11820.00

TMT BARS 20 MM MT 3490.59 8824.37 10301.87 11779.37 11820.00 11820.00 11820.00 11820.00

TMT BARS 25 MM MT 2327.06 5882.91 6867.92 7852.91 7880.00 7880.00 7880.00 7880.00

TMT BARS 32 MM MT 1163.53 2941.46 3433.95 3926.46 3940.00 3940.00 3940.00 3940.00

56

ANNEXURE - 11

TOTAL RAW MATERIAL COST(Rupees in

Lacs)

Operating Year Output Adj. for Total Cost Material Material Total

Description of

Product

UO

M Quantity WIP Stks Quantity Per Unit Type I Type II Amount

2012-13

TMT Bars 8 MM MT 4925.00 109.44 5034.44 31824.63 1602.19 1602.19

TMT Bars 10 MM MT 4925.00 109.44 5034.44 31824.63 1602.19 1602.19

TMT BARS 12 MM MT 3693.75 82.08 3775.83 31824.63 1201.64 1201.64

TMT BARS 16 MM MT 3693.75 82.08 3775.83 31824.63 1201.64 1201.64

TMT BARS 20 MM MT 3693.75 82.08 3775.83 31824.63 1201.64 1201.64

TMT BARS 25 MM MT 2462.50 54.72 2517.22 31824.63 801.10 801.10

TMT BARS 32 MM MT 1231.25 27.36 1258.61 31824.63 400.55 400.55

Total Raw Mat.

Requirement 8010.96 8010.96

2013-14

TMT Bars 8 MM MT 11820.00 21.89 11841.89 31824.63 3768.64 3768.64

TMT Bars 10 MM MT 11820.00 21.89 11841.89 31824.63 3768.64 3768.64

TMT BARS 12 MM MT 8865.00 16.42 8881.42 31824.63 2826.48 2826.48

TMT BARS 16 MM MT 8865.00 16.42 8881.42 31824.63 2826.48 2826.48

TMT BARS 20 MM MT 8865.00 16.42 8881.42 31824.63 2826.48 2826.48

TMT BARS 25 MM MT 5910.00 10.94 5920.94 31824.63 1884.32 1884.32

TMT BARS 32 MM MT 2955.00 5.47 2960.47 31824.63 942.16 942.16

Total Raw Mat.

Requirement 18843.19 18843.19

57

2014-15

TMT Bars 8 MM MT 13790.00 21.89 13811.89 31824.63 4395.58 4395.58

TMT Bars 10 MM MT 13790.00 21.89 13811.89 31824.63 4395.58 4395.58

TMT BARS 12 MM MT 10342.50 16.42 10358.92 31824.63 3296.69 3296.69

TMT BARS 16 MM MT 10342.50 16.42 10358.92 31824.63 3296.69 3296.69

TMT BARS 20 MM MT 10342.50 16.42 10358.92 31824.63 3296.69 3296.69

TMT BARS 25 MM MT 6895.00 10.94 6905.94 31824.63 2197.79 2197.79

TMT BARS 32 MM MT 3447.50 5.47 3452.97 31824.63 1098.89 1098.89

Total Raw Mat.

Requirement 21977.91 21977.91

2015-16

TMT Bars 8 MM MT 15760.00 21.89 15781.89 31824.63 5022.53 5022.53

TMT Bars 10 MM MT 15760.00 21.89 15781.89 31824.63 5022.53 5022.53

TMT BARS 12 MM MT 11820.00 16.42 11836.42 31824.63 3766.90 3766.90

TMT BARS 16 MM MT 11820.00 16.42 11836.42 31824.63 3766.90 3766.90

TMT BARS 20 MM MT 11820.00 16.42 11836.42 31824.63 3766.90 3766.90

TMT BARS 25 MM MT 7880.00 10.94 7890.94 31824.63 2511.26 2511.26

TMT BARS 32 MM MT 3940.00 5.47 3945.47 31824.63 1255.63 1255.63

Total Raw Mat.

Requirement 25112.64 25112.64

2016-17

TMT Bars 8 MM MT 15760.00 15760.00 31824.63 5015.56 5015.56

TMT Bars 10 MM MT 15760.00 15760.00 31824.63 5015.56 5015.56

TMT BARS 12 MM MT 11820.00 11820.00 31824.63 3761.67 3761.67

TMT BARS 16 MM MT 11820.00 11820.00 31824.63 3761.67 3761.67

TMT BARS 20 MM MT 11820.00 11820.00 31824.63 3761.67 3761.67

TMT BARS 25 MM MT 7880.00 7880.00 31824.63 2507.78 2507.78

TMT BARS 32 MM MT 3940.00 3940.00 31824.63 1253.89 1253.89

Total Raw Mat.

Requirement 25077.81 25077.81

2017-18

TMT Bars 8 MM MT 15760.00 15760.00 31824.63 5015.56 5015.56

TMT Bars 10 MM MT 15760.00 15760.00 31824.63 5015.56 5015.56

TMT BARS 12 MM MT 11820.00 11820.00 31824.63 3761.67 3761.67

TMT BARS 16 MM MT 11820.00 11820.00 31824.63 3761.67 3761.67

TMT BARS 20 MM MT 11820.00 11820.00 31824.63 3761.67 3761.67

TMT BARS 25 MM MT 7880.00 7880.00 31824.63 2507.78 2507.78

58

TMT BARS 32 MM MT 3940.00 3940.00 31824.63 1253.89 1253.89

Total Raw Mat.

Requirement 25077.81 25077.81

2018-19

TMT Bars 8 MM MT 15760.00 15760.00 31824.63 5015.56 5015.56

TMT Bars 10 MM MT 15760.00 15760.00 31824.63 5015.56 5015.56

TMT BARS 12 MM MT 11820.00 11820.00 31824.63 3761.67 3761.67

TMT BARS 16 MM MT 11820.00 11820.00 31824.63 3761.67 3761.67

TMT BARS 20 MM MT 11820.00 11820.00 31824.63 3761.67 3761.67

TMT BARS 25 MM MT 7880.00 7880.00 31824.63 2507.78 2507.78

TMT BARS 32 MM MT 3940.00 3940.00 31824.63 1253.89 1253.89

Total Raw Mat.

Requirement 25077.81 25077.81

2019-20

TMT Bars 8 MM MT 15760.00 15760.00 31824.63 5015.56 5015.56

TMT Bars 10 MM MT 15760.00 15760.00 31824.63 5015.56 5015.56

TMT BARS 12 MM MT 11820.00 11820.00 31824.63 3761.67 3761.67

TMT BARS 16 MM MT 11820.00 11820.00 31824.63 3761.67 3761.67

TMT BARS 20 MM MT 11820.00 11820.00 31824.63 3761.67 3761.67

TMT BARS 25 MM MT 7880.00 7880.00 31824.63 2507.78 2507.78

TMT BARS 32 MM MT 3940.00 3940.00 31824.63 1253.89 1253.89

Total Raw Mat.

Requirement 25077.81 25077.81

59

ANNEXURE - 12

RAW MATERIAL COST PER UNIT(Rupees in

Lacs)

Description of

Product Qty .Per Losses Total Rate Total

Batch

Qty Amount

Description of

Raw-Material

UO

M Batch %age Quantity Per Unit Amount

of

Output Per Unit

TMT Bars 8 MM MT

Ingot’s MT 1.00 0.02 1.02 31100.00 31824.63

Sub Totals 31824.63

Add Loss/Wastage @

0.00%

Totals (Indigenous) 31824.63 1.00 31824.63

TMT Bars 10 MM MT

INGOTS MT 1.00 0.02 1.02 31100.00 31824.63

Sub Totals 31824.63

Add Loss/Wastage @

0.00%

Totals (Indigenous) 31824.63 1.00 31824.63

TMT BARS 12 MM MT

Ingot’s MT 1.00 0.02 1.02 31100.00 31824.63

60

Sub Totals 31824.63

Add Loss/Wastage @

0.00%

Totals (Indigenous) 31824.63 1.00 31824.63

TMT BARS 16 MM MT

INGOTS MT 1.00 0.02 1.02 31100.00 31824.63

Sub Totals 31824.63

Add Loss/Wastage @

0.00%

Totals (Indigenous) 31824.63 1.00 31824.63

TMT BARS 20 MM MT

INGOTS MT 1.00 0.02 1.02 31100.00 31824.63

Sub Totals 31824.63

Add Loss/Wastage @

0.00%

Totals (Indigenous) 31824.63 1.00 31824.63

TMT BARS 25 MM MT

INGOTS MT 1.00 0.02 1.02 31100.00 31824.63

Sub Totals 31824.63

Add Loss/Wastage @

0.00%

Totals (Indigenous) 31824.63 1.00 31824.63

TMT BARS 32 MM MT

INGOTS MT 1.00 0.02 1.02 31100.00 31824.63

Sub Totals 31824.63

Add Loss/Wastage @

0.00%

Totals (Indigenous) 31824.63 1.00 31824.63

61

ANNEXURE - 13

TOTAL PACKING MATERIAL COST(Rupees in

Lacs)

Operating Year Output Adj. for Total Cost Total

Description of

Product

UO

M

Quantit

y WIP Stks.

Quantit

y Per Unit Amount

2012-13

TMT Bars 8 MM MT 4925.00 109.44 5034.44 55.00 2.77

TMT Bars 10 MM MT 4925.00 109.44 5034.44 55.00 2.77

TMT BARS 12 MM MT 3693.75 82.08 3775.83 55.00 2.08

TMT BARS 16 MM MT 3693.75 82.08 3775.83 55.00 2.08

TMT BARS 20 MM MT 3693.75 82.08 3775.83 55.00 2.08

TMT BARS 25 MM MT 2462.50 54.72 2517.22 55.00 1.38

TMT BARS 32 MM MT 1231.25 27.36 1258.61 55.00 0.69

Y e a r T o t a l:: 13.84

2013-14

TMT Bars 8 MM MT 11820.00 21.89 11841.89 55.00 6.51

TMT Bars 10 MM MT 11820.00 21.89 11841.89 55.00 6.51

TMT BARS 12 MM MT 8865.00 16.42 8881.42 55.00 4.88

TMT BARS 16 MM MT 8865.00 16.42 8881.42 55.00 4.88

TMT BARS 20 MM MT 8865.00 16.42 8881.42 55.00 4.88

TMT BARS 25 MM MT 5910.00 10.94 5920.94 55.00 3.26

TMT BARS 32 MM MT 2955.00 5.47 2960.47 55.00 1.63

62

Y e a r T o t a l: 32.57

2014-15

TMT Bars 8 MM MT 13790.00 21.89 13811.89 55.00 7.60

TMT Bars 10 MM MT 13790.00 21.89 13811.89 55.00 7.60

TMT BARS 12 MM MT 10342.50 16.42 10358.92 55.00 5.70

TMT BARS 16 MM MT 10342.50 16.42 10358.92 55.00 5.70

TMT BARS 20 MM MT 10342.50 16.42 10358.92 55.00 5.70

TMT BARS 25 MM MT 6895.00 10.94 6905.94 55.00 3.80

TMT BARS 32 MM MT 3447.50 5.47 3452.97 55.00 1.90

Y e a r T o t a l: 37.98

2015-16

TMT Bars 8 MM MT 15760.00 21.89 15781.89 55.00 8.68

TMT Bars 10 MM MT 15760.00 21.89 15781.89 55.00 8.68

TMT BARS 12 MM MT 11820.00 16.42 11836.42 55.00 6.51

TMT BARS 16 MM MT 11820.00 16.42 11836.42 55.00 6.51

TMT BARS 20 MM MT 11820.00 16.42 11836.42 55.00 6.51

TMT BARS 25 MM MT 7880.00 10.94 7890.94 55.00 4.34

TMT BARS 32 MM MT 3940.00 5.47 3945.47 55.00 2.17

Y e a r T o t a l: 43.40

2016-17

TMT Bars 8 MM MT 15760.00 15760.00 55.00 8.67

TMT Bars 10 MM MT 15760.00 15760.00 55.00 8.67

TMT BARS 12 MM MT 11820.00 11820.00 55.00 6.50

TMT BARS 16 MM MT 11820.00 11820.00 55.00 6.50

TMT BARS 20 MM MT 11820.00 11820.00 55.00 6.50

TMT BARS 25 MM MT 7880.00 7880.00 55.00 4.33

TMT BARS 32 MM MT 3940.00 3940.00 55.00 2.17

Y e a r T o t a l: 43.34

2017-18

TMT Bars 8 MM MT 15760.00 15760.00 55.00 8.67

TMT Bars 10 MM MT 15760.00 15760.00 55.00 8.67

TMT BARS 12 MM MT 11820.00 11820.00 55.00 6.50

TMT BARS 16 MM MT 11820.00 11820.00 55.00 6.50

TMT BARS 20 MM MT 11820.00 11820.00 55.00 6.50

TMT BARS 25 MM MT 7880.00 7880.00 55.00 4.33

TMT BARS 32 MM MT 3940.00 3940.00 55.00 2.17

Y e a r T o t a l: 43.34

63

2018-19

TMT Bars 8 MM MT 15760.00 15760.00 55.00 8.67

TMT Bars 10 MM MT 15760.00 15760.00 55.00 8.67

TMT BARS 12 MM MT 11820.00 11820.00 55.00 6.50

TMT BARS 16 MM MT 11820.00 11820.00 55.00 6.50

TMT BARS 20 MM MT 11820.00 11820.00 55.00 6.50

TMT BARS 25 MM MT 7880.00 7880.00 55.00 4.33

TMT BARS 32 MM MT 3940.00 3940.00 55.00 2.17

Y e a r T o t a l: 43.34

2019-20

TMT Bars 8 MM MT 15760.00 15760.00 55.00 8.67

TMT Bars 10 MM MT 15760.00 15760.00 55.00 8.67

TMT BARS 12 MM MT 11820.00 11820.00 55.00 6.50

TMT BARS 16 MM MT 11820.00 11820.00 55.00 6.50

TMT BARS 20 MM MT 11820.00 11820.00 55.00 6.50

TMT BARS 25 MM MT 7880.00 7880.00 55.00 4.33

TMT BARS 32 MM MT 3940.00 3940.00 55.00 2.17

Y e a r T o t a l: 43.34

64

ANNEXURE - 14

CONSUMABLES, STORES AND SPARES

EXPENSES(Rupees in

Lacs)

Operating Year Output Adj. for Total Cost Total

Description of

Product

UO

M

Quantit

y

WIP

Stks

Quantit

y Per Unit Amount

2012-13

TMT Bars 8 MM MT 4925.00 109.44 5034.44 100.00 5.03

TMT Bars 10 MM MT 4925.00 109.44 5034.44 100.00 5.03

TMT BARS 12 MM MT 3693.75 82.08 3775.83 100.00 3.78

TMT BARS 16 MM MT 3693.75 82.08 3775.83 100.00 3.78

TMT BARS 20 MM MT 3693.75 82.08 3775.83 100.00 3.78

TMT BARS 25 MM MT 2462.50 54.72 2517.22 100.00 2.52

TMT BARS 32 MM MT 1231.25 27.36 1258.61 100.00 1.26

Y e a r T o t a l: 25.17

2013-14

TMT Bars 8 MM MT 11820.00 21.89 11841.89 100.00 11.84

TMT Bars 10 MM MT 11820.00 21.89 11841.89 100.00 11.84

TMT BARS 12 MM MT 8865.00 16.42 8881.42 100.00 8.88

TMT BARS 16 MM MT 8865.00 16.42 8881.42 100.00 8.88

TMT BARS 20 MM MT 8865.00 16.42 8881.42 100.00 8.88

TMT BARS 25 MM MT 5910.00 10.94 5920.94 100.00 5.92

65

TMT BARS 32 MM MT 2955.00 5.47 2960.47 100.00 2.96

Y e a r T o t a l: 59.21

2014-15

TMT Bars 8 MM MT 13790.00 21.89 13811.89 100.00 13.81

TMT Bars 10 MM MT 13790.00 21.89 13811.89 100.00 13.81

TMT BARS 12 MM MT 10342.50 16.42 10358.92 100.00 10.36

TMT BARS 16 MM MT 10342.50 16.42 10358.92 100.00 10.36

TMT BARS 20 MM MT 10342.50 16.42 10358.92 100.00 10.36

TMT BARS 25 MM MT 6895.00 10.94 6905.94 100.00 6.91

TMT BARS 32 MM MT 3447.50 5.47 3452.97 100.00 3.45

Y e a r T o t a l: 69.06

2015-16

TMT Bars 8 MM MT 15760.00 21.89 15781.89 100.00 15.78

TMT Bars 10 MM MT 15760.00 21.89 15781.89 100.00 15.78

TMT BARS 12 MM MT 11820.00 16.42 11836.42 100.00 11.84

TMT BARS 16 MM MT 11820.00 16.42 11836.42 100.00 11.84

TMT BARS 20 MM MT 11820.00 16.42 11836.42 100.00 11.84

TMT BARS 25 MM MT 7880.00 10.94 7890.94 100.00 7.89

TMT BARS 32 MM MT 3940.00 5.47 3945.47 100.00 3.95

Y e a r T o t a l: 78.91

2016-17

TMT Bars 8 MM MT 15760.00 15760.00 100.00 15.76

TMT Bars 10 MM MT 15760.00 15760.00 100.00 15.76

TMT BARS 12 MM MT 11820.00 11820.00 100.00 11.82

TMT BARS 16 MM MT 11820.00 11820.00 100.00 11.82

TMT BARS 20 MM MT 11820.00 11820.00 100.00 11.82

TMT BARS 25 MM MT 7880.00 7880.00 100.00 7.88

TMT BARS 32 MM MT 3940.00 3940.00 100.00 3.94

Y e a r T o t a l: 78.80

2017-18

TMT Bars 8 MM MT 15760.00 15760.00 100.00 15.76

TMT Bars 10 MM MT 15760.00 15760.00 100.00 15.76

TMT BARS 12 MM MT 11820.00 11820.00 100.00 11.82

TMT BARS 16 MM MT 11820.00 11820.00 100.00 11.82

TMT BARS 20 MM MT 11820.00 11820.00 100.00 11.82

TMT BARS 25 MM MT 7880.00 7880.00 100.00 7.88

66

TMT BARS 32 MM MT 3940.00 3940.00 100.00 3.94

Y e a r T o t a l: 78.80

2018-19

TMT Bars 8 MM MT 15760.00 15760.00 100.00 15.76

TMT Bars 10 MM MT 15760.00 15760.00 100.00 15.76

TMT BARS 12 MM MT 11820.00 11820.00 100.00 11.82

TMT BARS 16 MM MT 11820.00 11820.00 100.00 11.82

TMT BARS 20 MM MT 11820.00 11820.00 100.00 11.82

TMT BARS 25 MM MT 7880.00 7880.00 100.00 7.88

TMT BARS 32 MM MT 3940.00 3940.00 100.00 3.94

Y e a r T o t a l: 78.80

2019-20

TMT Bars 8 MM MT 15760.00 15760.00 100.00 15.76

TMT Bars 10 MM MT 15760.00 15760.00 100.00 15.76

TMT BARS 12 MM MT 11820.00 11820.00 100.00 11.82

TMT BARS 16 MM MT 11820.00 11820.00 100.00 11.82

TMT BARS 20 MM MT 11820.00 11820.00 100.00 11.82

TMT BARS 25 MM MT 7880.00 7880.00 100.00 7.88

TMT BARS 32 MM MT 3940.00 3940.00 100.00 3.94

Y e a r T o t a l: 78.80

67

ANNEXURE - 15

EMPLOYEES EXPENSES(Rupees in

Lacs)

Placement/ Dept./ Starting Starting No. Of Pay Per Total

Designation Category Year Month Persons Month Amount

Factory Personnel

As Applicable from Year 1

GENERAL MANAGER

Factory

Person 1.00 7.00 1.00 80000.00 4.80

Production Manager

Factory

Person 1.00 7.00 1.00 50000.00 3.00

Production Incharge

Factory

Person 1.00 7.00 1.00 40000.00 2.40

Operators 1.00 7.00 4.00 25000.00 6.00

T O T A L 16.20

Welfare Expenses (@ 10.00 %) 1.62

Y e a r T o t a l 7.00 17.82

T o t a l (Factory) 7.00

Admin. Personnel

68

As Applicable from Year 1

Finance Controller 1.00 4.00 1.00 50000.00 4.50

Accounts Asst. 1.00 4.00 4.00 10000.00 3.60

Time office & other 1.00 4.00 4.00 8000.00 2.88

Security Staff 1.00 4.00 12.00 7000.00 7.56

Support Staff 1.00 4.00 4.00 5000.00 1.80

T o t a l 20.34

Welfare Expenses (@ 10.00 %) 2.03

Y e a r T o t a l 25.00 22.37

Total (Admin. Personnel) 25.00

Sales Personnel

As Applicable from Year 1

Marketing staff 1.00 7.00 4.00 25000.00 6.00

T o t a l 6.00

Welfare Expenses (@ 10.00 %) 0.60

Y e a r T o t a l 4.00 6.60

T o t a l (Sales) 4.00

G r a n d T o t a l 36.00

69

ANNEXURE - 16

FUEL EXPENSES (Rupees in Lacs)

Operating Year Output Adj. for Total Cost Total

Description of Product UOM

Quantit

y WIP Stk.

Quantit

y Per Unit Amount

2012-13

TMT Bars 8 MM MT 4925.00 109.44 5034.44 750.00 37.76

TMT Bars 10 MM MT 4925.00 109.44 5034.44 750.00 37.76

TMT BARS 12 MM MT 3693.75 82.08 3775.83 750.00 28.32

TMT BARS 16 MM MT 3693.75 82.08 3775.83 750.00 28.32

TMT BARS 20 MM MT 3693.75 82.08 3775.83 750.00 28.32

TMT BARS 25 MM MT 2462.50 54.72 2517.22 750.00 18.88

TMT BARS 32 MM MT 1231.25 27.36 1258.61 750.00 9.44

Y e a r T o t a l: 188.79

2013-14

TMT Bars 8 MM MT 11820.00 21.89 11841.89 750.00 88.81

TMT Bars 10 MM MT 11820.00 21.89 11841.89 750.00 88.81

TMT BARS 12 MM MT 8865.00 16.42 8881.42 750.00 66.61

TMT BARS 16 MM MT 8865.00 16.42 8881.42 750.00 66.61

TMT BARS 20 MM MT 8865.00 16.42 8881.42 750.00 66.61

TMT BARS 25 MM MT 5910.00 10.94 5920.94 750.00 44.41

TMT BARS 32 MM MT 2955.00 5.47 2960.47 750.00 22.20

Y e a r T o t a l: 444.07

70

2014-15

TMT Bars 8 MM MT 13790.00 21.89 13811.89 750.00 103.59

TMT Bars 10 MM MT 13790.00 21.89 13811.89 750.00 103.59

TMT BARS 12 MM MT 10342.50 16.42 10358.92 750.00 77.69

TMT BARS 16 MM MT 10342.50 16.42 10358.92 750.00 77.69

TMT BARS 20 MM MT 10342.50 16.42 10358.92 750.00 77.69

TMT BARS 25 MM MT 6895.00 10.94 6905.94 750.00 51.79

TMT BARS 32 MM MT 3447.50 5.47 3452.97 750.00 25.90

Y e a r T o t a l: 517.95

2015-16

TMT Bars 8 MM MT 15760.00 21.89 15781.89 750.00 118.36

TMT Bars 10 MM MT 15760.00 21.89 15781.89 750.00 118.36

TMT BARS 12 MM MT 11820.00 16.42 11836.42 750.00 88.77

TMT BARS 16 MM MT 11820.00 16.42 11836.42 750.00 88.77

TMT BARS 20 MM MT 11820.00 16.42 11836.42 750.00 88.77

TMT BARS 25 MM MT 7880.00 10.94 7890.94 750.00 59.18

TMT BARS 32 MM MT 3940.00 5.47 3945.47 750.00 29.59

Y e a r T o t a l: 591.82

2016-17

TMT Bars 8 MM MT 15760.00 15760.00 750.00 118.20

TMT Bars 10 MM MT 15760.00 15760.00 750.00 118.20

TMT BARS 12 MM MT 11820.00 11820.00 750.00 88.65

TMT BARS 16 MM MT 11820.00 11820.00 750.00 88.65

TMT BARS 20 MM MT 11820.00 11820.00 750.00 88.65

TMT BARS 25 MM MT 7880.00 7880.00 750.00 59.10

TMT BARS 32 MM MT 3940.00 3940.00 750.00 29.55

Y e a r T o t a l: 591.00

2017-18

TMT Bars 8 MM MT 15760.00 15760.00 750.00 118.20

TMT Bars 10 MM MT 15760.00 15760.00 750.00 118.20

TMT BARS 12 MM MT 11820.00 11820.00 750.00 88.65

TMT BARS 16 MM MT 11820.00 11820.00 750.00 88.65

TMT BARS 20 MM MT 11820.00 11820.00 750.00 88.65

TMT BARS 25 MM MT 7880.00 7880.00 750.00 59.10

TMT BARS 32 MM MT 3940.00 3940.00 750.00 29.55

Y e a r T o t a l: 591.00

2018-19

71

TMT Bars 8 MM MT 15760.00 15760.00 750.00 118.20

TMT Bars 10 MM MT 15760.00 15760.00 750.00 118.20

TMT BARS 12 MM MT 11820.00 11820.00 750.00 88.65

TMT BARS 16 MM MT 11820.00 11820.00 750.00 88.65

TMT BARS 20 MM MT 11820.00 11820.00 750.00 88.65

TMT BARS 25 MM MT 7880.00 7880.00 750.00 59.10

TMT BARS 32 MM MT 3940.00 3940.00 750.00 29.55

Y e a r T o t a l: 591.00

2019-20

TMT Bars 8 MM MT 15760.00 15760.00 750.00 118.20

TMT Bars 10 MM MT 15760.00 15760.00 750.00 118.20

TMT BARS 12 MM MT 11820.00 11820.00 750.00 88.65

TMT BARS 16 MM MT 11820.00 11820.00 750.00 88.65

TMT BARS 20 MM MT 11820.00 11820.00 750.00 88.65

TMT BARS 25 MM MT 7880.00 7880.00 750.00 59.10

TMT BARS 32 MM MT 3940.00 3940.00 750.00 29.55

Y e a r T o t a l: 591.00

72

ANNEXURE - 17

POWER/ELECTRICITY EXPENSES(Rupees in

Lacs)

Operating Year Output Adj. for Total Cost Total

Description of

Product UOM Quantity WIP Stk. Quantity Per Unit Amount

2012-13

TMT Bars 8 MM MT 4925.00 109.44 5034.44 495.00 24.92

TMT Bars 10 MM MT 4925.00 109.44 5034.44 495.00 24.92

TMT BARS 12 MM MT 3693.75 82.08 3775.83 495.00 18.69

TMT BARS 16 MM MT 3693.75 82.08 3775.83 495.00 18.69

TMT BARS 20 MM MT 3693.75 82.08 3775.83 495.00 18.69

TMT BARS 25 MM MT 2462.50 54.72 2517.22 495.00 12.46

TMT BARS 32 MM MT 1231.25 27.36 1258.61 495.00 6.23

Y e a r T o t a l: 124.60

2013-14

TMT Bars 8 MM MT 11820.00 21.89 11841.89 495.00 58.62

TMT Bars 10 MM MT 11820.00 21.89 11841.89 495.00 58.62

TMT BARS 12 MM MT 8865.00 16.42 8881.42 495.00 43.96

TMT BARS 16 MM MT 8865.00 16.42 8881.42 495.00 43.96

73

TMT BARS 20 MM MT 8865.00 16.42 8881.42 495.00 43.96

TMT BARS 25 MM MT 5910.00 10.94 5920.94 495.00 29.31

TMT BARS 32 MM MT 2955.00 5.47 2960.47 495.00 14.65

Y e a r T o t a l: : 293.09

2014-15

TMT Bars 8 MM MT 13790.00 21.89 13811.89 495.00 68.37

TMT Bars 10 MM MT 13790.00 21.89 13811.89 495.00 68.37

TMT BARS 12 MM MT 10342.50 16.42 10358.92 495.00 51.28

TMT BARS 16 MM MT 10342.50 16.42 10358.92 495.00 51.28

TMT BARS 20 MM MT 10342.50 16.42 10358.92 495.00 51.28

TMT BARS 25 MM MT 6895.00 10.94 6905.94 495.00 34.18

TMT BARS 32 MM MT 3447.50 5.47 3452.97 495.00 17.09

Y e a r T o t a l: : 341.84

2015-16

TMT Bars 8 MM MT 15760.00 21.89 15781.89 495.00 78.12

TMT Bars 10 MM MT 15760.00 21.89 15781.89 495.00 78.12

TMT BARS 12 MM MT 11820.00 16.42 11836.42 495.00 58.59

TMT BARS 16 MM MT 11820.00 16.42 11836.42 495.00 58.59

TMT BARS 20 MM MT 11820.00 16.42 11836.42 495.00 58.59

TMT BARS 25 MM MT 7880.00 10.94 7890.94 495.00 39.06

TMT BARS 32 MM MT 3940.00 5.47 3945.47 495.00 19.53

Y e a r T o t a l: : 390.60

2016-17

TMT Bars 8 MM MT 15760.00 15760.00 495.00 78.01

TMT Bars 10 MM MT 15760.00 15760.00 495.00 78.01

TMT BARS 12 MM MT 11820.00 11820.00 495.00 58.51

TMT BARS 16 MM MT 11820.00 11820.00 495.00 58.51

TMT BARS 20 MM MT 11820.00 11820.00 495.00 58.51

TMT BARS 25 MM MT 7880.00 7880.00 495.00 39.01

TMT BARS 32 MM MT 3940.00 3940.00 495.00 19.50

Y e a r T o t a l: : 390.06

2017-18

TMT Bars 8 MM MT 15760.00 15760.00 495.00 78.01

TMT Bars 10 MM MT 15760.00 15760.00 495.00 78.01

TMT BARS 12 MM MT 11820.00 11820.00 495.00 58.51

TMT BARS 16 MM MT 11820.00 11820.00 495.00 58.51

TMT BARS 20 MM MT 11820.00 11820.00 495.00 58.51

74

TMT BARS 25 MM MT 7880.00 7880.00 495.00 39.01

TMT BARS 32 MM MT 3940.00 3940.00 495.00 19.50

Y e a r T o t a l: : 390.06

2018-19

TMT Bars 8 MM MT 15760.00 15760.00 495.00 78.01

TMT Bars 10 MM MT 15760.00 15760.00 495.00 78.01

TMT BARS 12 MM MT 11820.00 11820.00 495.00 58.51

TMT BARS 16 MM MT 11820.00 11820.00 495.00 58.51

TMT BARS 20 MM MT 11820.00 11820.00 495.00 58.51

TMT BARS 25 MM MT 7880.00 7880.00 495.00 39.01

TMT BARS 32 MM MT 3940.00 3940.00 495.00 19.50

Y e a r T o t a l: : 390.06

2019-20

TMT Bars 8 MM MT 15760.00 15760.00 495.00 78.01

TMT Bars 10 MM MT 15760.00 15760.00 495.00 78.01

TMT BARS 12 MM MT 11820.00 11820.00 495.00 58.51

TMT BARS 16 MM MT 11820.00 11820.00 495.00 58.51

TMT BARS 20 MM MT 11820.00 11820.00 495.00 58.51

TMT BARS 25 MM MT 7880.00 7880.00 495.00 39.01

TMT BARS 32 MM MT 3940.00 3940.00 495.00 19.50

Y e a r T o t a l: : 390.06

75

ANNEXURE - 18

REPAIRS AND MAINTENANCE

EXPENSES(Rupees in

Lacs)

% age to

Assets Total

Particulars Value Amount

Year 1 Year 2 Year 3 Year 4 Year

Buildings

-Factory Building 2.00 .00 4. 36.00

-Office Building & Utilities 2.00 .00 3. 88.00

Plant and Machineries

-Imported Machineries

-Indigenous Machineries 3.00 .00 38. 44.00

-Tools, Jigs & Fixtures 3.00 .00 1. 34.00

-Laboratory Equipment’s 3.00 .00 1. 34.00

-Electrification, etc. 3.00 .00 15. 39.00

-Installation, Erection, etc.

-Motor Vehicles

-Computers, Printers, etc. 10.00 .00 0. 30.00

76

-Furniture & Fixtures 5.00 .00 0. 75.00

TOTAL 65.00 80.00

Operating Year Specific ic Expens

es %age-

A ssets Val ue Misc. .

%age %age Given

Total

increa se Amt. increa se Amt.

Expens

e

es

Amount

2012-13 32.90 65.80

2013-14 10.00 10.00 72.38 72.38

2014-15 10.00 10.00 79.62 79.62

2015-16 10.00 10.00 87.58 87.58

2016-17 10.00 10.00 96.34 96.34

2017-18 10.00 10.00 105.97 105.97

2018-19 10.00 10.00 116.57 116.57

2019-20 10.00 10.00 128.22 128.22

77

ANNEXURE - 19

OTHER MANUFACTURING EXPENSES(Rupees in

Lacs)

Particulars Amount

Insurance Charges 12.00

Labor (Un Loading) 42.00

Labor (WIP) 32.00

Labor (Processing) 47.00

T o t a l 133.00

Operating Year Specific

Expenses

%age Misc. Total

2012-13 66.50 66.50

78

2013-14 20.00 159.60 159.60

2014-15 16.67 186.21 186.21

2015-16 14.29 212.81 212.81

2016-17 10.00 234.10 234.10

2017-18 10.00 257.51 257.51

2018-19 10.00 283.26 283.26

2019-20 10.00 311.58 311.58

ANNEXURE - 20

ADMINISTRATIVE AND GENERAL

EXPENSES(Rupees in

Lacs)

Particulars Amount

Mgmt. Remuneration 24.00

Telephone Exp. 3.00

Stationery Exp. 4.00

Travelling Exp. 5.00

Conveyance Exp. 4.00

General Office Exp. 3.00

T o t a l 43.00

Operating Year Specific

Expenses

79

%age Misc. . Total

2012-13 21.50 21.50

2013-14 10.00 47.30 47.30

2014-15 10.00 52.03 52.03

2015-16 10.00 57.23 57.23

2016-17 10.00 62.96 62.96

2017-18 10.00 69.25 69.25

2018-19 10.00 76.18 76.18

2019-20 10.00 83.79 83.79

ANNEXURE - 21

SELLING AND DISTRIBUTION

EXPENSES(Rupees in

Lacs)

Domesti

c

Domesti

c

Domesti

c

Domesti

c

Domesti

c

Operating Year Sales Comm. Comm. Exp. Exp. Total

Description of Product Value %age Amount %age Amount Amount

2012-13

TMT Bars 8 MM 1712.72 0.75 12.85 0.20 3.43 16.27

TMT Bars 10 MM 1647.56 0.75 12.36 0.20 3.30 15.65

TMT BARS 12 MM 1221.71 0.75 9.16 0.20 2.44 11.61

TMT BARS 16 MM 1228.69 0.75 9.22 0.20 2.46 11.67

TMT BARS 20 MM 1221.71 0.75 9.16 0.20 2.44 11.61

TMT BARS 25 MM 814.47 0.75 6.11 0.20 1.63 7.74

TMT BARS 32 MM 414.22 0.75 3.11 0.20 0.83 3.94

Year Totals : : 61.96 16.52 78.48

2013-14

TMT Bars 8 MM 4329.83 0.75 32.47 0.20 8.66 41.13

TMT Bars 10 MM 4165.10 0.75 31.24 0.20 8.33 39.57

TMT BARS 12 MM 3088.53 0.75 23.16 0.20 6.18 29.34

80

TMT BARS 16 MM 3106.18 0.75 23.30 0.20 6.21 29.51

TMT BARS 20 MM 3088.53 0.75 23.16 0.20 6.18 29.34

TMT BARS 25 MM 2059.02 0.75 15.44 0.20 4.12 19.56

TMT BARS 32 MM 1047.16 0.75 7.85 0.20 2.09 9.95

Year Totals : : 156.63 41.77 198.40

2014-15

TMT Bars 8 MM 5054.78 0.75 37.91 0.20 10.11 48.02

TMT Bars 10 MM 4862.48 0.75 36.47 0.20 9.72 46.19

TMT BARS 12 MM 3605.65 0.75 27.04 0.20 7.21 34.25

TMT BARS 16 MM 3626.26 0.75 27.20 0.20 7.25 34.45

TMT BARS 20 MM 3605.65 0.75 27.04 0.20 7.21 34.25

TMT BARS 25 MM 2403.77 0.75 18.03 0.20 4.81 22.84

TMT BARS 32 MM 1222.49 0.75 9.17 0.20 2.44 11.61

Year Totals : : 182.86 48.76 231.62

2015-16

TMT Bars 8 MM 5779.75 0.75 43.35 0.20 11.56 54.91

TMT Bars 10 MM 5559.86 0.75 41.70 0.20 11.12 52.82

TMT BARS 12 MM 4122.78 0.75 30.92 0.20 8.25 39.17

TMT BARS 16 MM 4146.34 0.75 31.10 0.20 8.29 39.39

TMT BARS 20 MM 4122.78 0.75 30.92 0.20 8.25 39.17

TMT BARS 25 MM 2748.52 0.75 20.61 0.20 5.50 26.11

TMT BARS 32 MM 1397.82 0.75 10.48 0.20 2.80 13.28

Year Totals : : 209.08 55.76 264.84

2016-17

TMT Bars 8 MM 5799.68 0.75 43.50 0.20 11.60 55.10

TMT Bars 10 MM 5579.04 0.75 41.84 0.20 11.16 53.00

TMT BARS 12 MM 4137.00 0.75 31.03 0.20 8.27 39.30

TMT BARS 16 MM 4160.64 0.75 31.20 0.20 8.32 39.53

TMT BARS 20 MM 4137.00 0.75 31.03 0.20 8.27 39.30

TMT BARS 25 MM 2758.00 0.75 20.69 0.20 5.52 26.20

TMT BARS 32 MM 1402.64 0.75 10.52 0.20 2.81 13.33

Year Totals : : 209.81 55.95 265.75

2017-18

TMT Bars 8 MM 5799.68 0.75 43.50 0.20 11.60 55.10

TMT Bars 10 MM 5579.04 0.75 41.84 0.20 11.16 53.00

TMT BARS 12 MM 4137.00 0.75 31.03 0.20 8.27 39.30

81

TMT BARS 16 MM 4160.64 0.75 31.20 0.20 8.32 39.53

TMT BARS 20 MM 4137.00 0.75 31.03 0.20 8.27 39.30

TMT BARS 25 MM 2758.00 0.75 20.69 0.20 5.52 26.20

TMT BARS 32 MM 1402.64 0.75 10.52 0.20 2.81 13.33

Year Totals : : 209.81 55.95 265.75

2018-19

TMT Bars 8 MM 5799.68 0.75 43.50 0.20 11.60 55.10

TMT Bars 10 MM 5579.04 0.75 41.84 0.20 11.16 53.00

TMT BARS 12 MM 4137.00 0.75 31.03 0.20 8.27 39.30

TMT BARS 16 MM 4160.64 0.75 31.20 0.20 8.32 39.53

TMT BARS 20 MM 4137.00 0.75 31.03 0.20 8.27 39.30

TMT BARS 25 MM 2758.00 0.75 20.69 0.20 5.52 26.20

TMT BARS 32 MM 1402.64 0.75 10.52 0.20 2.81 13.33

Year Totals : : 209.81 55.95 265.75

2019-20

TMT Bars 8 MM 5799.68 0.75 43.50 0.20 11.60 55.10

TMT Bars 10 MM 5579.04 0.75 41.84 0.20 11.16 53.00

TMT BARS 12 MM 4137.00 0.75 31.03 0.20 8.27 39.30

TMT BARS 16 MM 4160.64 0.75 31.20 0.20 8.32 39.53

TMT BARS 20 MM 4137.00 0.75 31.03 0.20 8.27 39.30

TMT BARS 25 MM 2758.00 0.75 20.69 0.20 5.52 26.20

TMT BARS 32 MM 1402.64 0.75 10.52 0.20 2.81 13.33

Year Totals : : 209.81 55.95 265.75

82

ANNEXURE - 22

INTEREST AND REPAYMENT ON TERM

LOANS(Rupees in

Lacs)

A Name of Institution-Bank :: Term Loan From Bank Phased-C

B Term Borrowing Amount :: 1675.00

C Repayment Term (Years) :: 6.00

D Repayment Installments :: 24.00

E Repayment Commencement :: Year - 2 3rd Qtr.

F Rate of Interest(General) :: 12.75 % Per Annum

F Rate of Interest(Initial) :: 0.00 % Per Annum

G Apply Gen. Int. Rate from Year :: 1 Quarter :: 3

H Interest Calculation :: Quarterly

Operating Period Repayment Amount Interest

Year Ended Amount

Outstandin

g Amount

2012-13 1.00 1675.00

2.00 1675.00

83

3.00 1675.00 53.39

4.00 1675.00 53.39

TOTAL : 106.78

2013-14 1.00 1675.00 53.39

2.00 1675.00 53.39

3.00 69.79 1605.21 53.39

4.00 69.79 1535.42 51.17

TOTAL : 139.58 211.34

2014-15 1.00 69.79 1465.63 48.94

2.00 69.79 1395.83 46.72

3.00 69.79 1326.04 44.49

4.00 69.79 1256.25 42.27

TOTAL : 279.17 182.42

2015-16 1.00 69.79 1186.46 40.04

2.00 69.79 1116.67 37.82

3.00 69.79 1046.88 35.59

4.00 69.79 977.08 33.37

TOTAL : 279.17 146.82

2016-17 1.00 69.79 907.29 31.14

2.00 69.79 837.50 28.92

3.00 69.79 767.71 26.70

4.00 69.79 697.92 24.47

TOTAL : 279.17 111.23

2017-18 1.00 69.79 628.13 22.25

2.00 69.79 558.33 20.02

3.00 69.79 488.54 17.80

4.00 69.79 418.75 15.57

TOTAL : 279.17 75.64

2018-19 1.00 69.79 348.96 13.35

2.00 69.79 279.17 11.12

3.00 69.79 209.38 8.90

4.00 69.79 139.58 6.67

TOTAL : 279.17 40.04

2019-20 1.00 69.79 69.79 4.45

2.00 69.79 2.22

TOTAL : 139.58 6.67

84

ANNEXURE - 27

INTEREST AND REPAYMENT ON UNSECURED

DEPOSITS(Rupees in

Lacs)

A Name of Institution-Bank :: Agarwal group Phased-C

B Deposit/Borrowing Amt. :: 650.00

C Repayment Term (Years) :: 7.00

D Repayment Installments :: 28.00

E Repayment Commencement :: Year - 4 3rd Qtr.

F Rate of Interest(General) :: 10.00 % Per Annum

F Rate of Interest(Initial) :: 0.00 % Per Annum

G Apply Gen. Int. Rate from Year :: 1 Quarter :: 3

H Interest Calculation :: Quarterly

Operating Period Repayment Amount Interest

85

Year Ended Amount Outstanding Amount

2012-13 1.00 650.00

2.00 650.00

3.00 650.00 16.25

4.00 650.00 16.25

TOTAL : 32.50

2013-14 1.00 650.00 16.25

2.00 650.00 16.25

3.00 650.00 16.25

4.00 650.00 16.25

TOTAL : 65.00

2014-15 1.00 650.00 16.25

2.00 650.00 16.25

3.00 650.00 16.25

4.00 650.00 16.25

TOTAL : 65.00

2015-16 1.00 650.00 16.25

2.00 650.00 16.25

3.00 23.21 626.79 16.25

4.00 23.21 603.57 15.67

TOTAL : 46.43 64.42

2016-17 1.00 23.21 580.36 15.09

2.00 23.21 557.14 14.51

3.00 23.21 533.93 13.93

4.00 23.21 510.71 13.35

TOTAL : 92.86 56.88

2017-18 1.00 23.21 487.50 12.77

2.00 23.21 464.29 12.19

3.00 23.21 441.07 11.61

4.00 23.21 417.86 11.03

TOTAL : 92.86 47.59

2018-19 1.00 23.21 394.64 10.45

2.00 23.21 371.43 9.87

3.00 23.21 348.21 9.29

4.00 23.21 325.00 8.71

TOTAL : 92.86 38.30

2019-20 1.00 23.21 301.79 8.13

2.00 23.21 278.57 7.54

3.00 23.21 255.36 6.96

86

4.00 23.21 232.14 6.38

TOTAL: 92.86 29.02

2020-21 1.00 23.21 208.93 5.80

2.00 23.21 185.71 5.22

3.00 23.21 162.50 4.64

4.00 23.21 139.29 4.06

TOTAL: 92.86 19.73

Note: Repayment is considered as being made at the end of the period

ANNEXURE - 24

TAX ON PROFITS (Rupees in Lacs)

Particulars Operating Years

2012

-13

2013

-14

2014

-15

2015

-16

2016

-17

2017

-18

2018

-19

2019

-20

Net Profit Before Taxes -

137.27

121.81 308.06 502.05 531.83 548.12 558.33 560.89

Adjustments to NPBT

Add: Depreciation as

provided 239.36 284.31 245.50 212.16 183.46 158.74 137.43 119.03

Less: Depreciation as per 337.33 287.57 245.67 210.16 179.94 154.18 132.19 113.42

87

IT

Recomputed NPBT

-

235.24 118.55 307.89 504.05 535.35 552.68 563.57 566.50

Adjustments to

Recomputed NPBT

Less: Set-off of Losses 118.55 116.68

Less: Deduction u/s

80HHC

Less: Deduction u/s 80IA

Less: Other Deductions

Taxable Profits 191.21 504.05 535.35 552.68 563.57 566.50

Tax on Profits 0.49 59.08 155.75 165.42 170.78 174.14 175.05

6 References

Aarti Agencies

Sun Enterprise

Neelkanth Steel

Sefo Industries

88