Jakaraya Financial Analysis March 07, 09

8/14/2019 Jakaraya Financial Analysis March 07, 09

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Jakraya Sugar Ltd., Mangalwedha, Dist. Solapur

(Rs.Lakh)

Already incurred To be incurred TotalParticulars Co-gen Sugar Co-gen Sugar

Project Project Project Project

Land

Acquistion cost and 20 41 13 24 98

Stamp Duty / legal charges (incl. Above)

Total 20 41 13 24 98

Site development:

Levelling & site grading 0 0 5 5 10

Cane Yard levelling & grading 0 0 0 15 15

Fencing 0 0 10 10 20

Gates 0 0 5 5 10

Roads & Culverts 0 0 10 10 20

Sewerage and Drainage 0 0 5 5 10

Total Cost 0 0 35 50 85

Total Land and Site Development Cost 20 41 48 74 183

ANNEXURE 1

PARTICULARS OF LAND AND SITE DEVELOPMENT COSTS

MITCON Consultancy Services Ltd., Pune


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(Rs.Lakh)

Description Already incurred To be incurred TotalCo-gen Sugar Co-gen Sugar


1. Power House Building ( TG hall & maintenance bay) 0 0 100 0 100

2. Turbo Alternator & other Auxiliary Foundations 0 0 30 0 30

3. Boiler and Auxiliary Foundations 0 0 25 0 25

4. Switchyard / MSEB substation Foundations 0 0 15 0 15

5. Water Treatment Plant 0 0 10 0 10

6. Tanks, fuel & ash handling conveyor foundations 0 0 10 0 10

7. Coal crusher & shed 0 0 0 0 0

8. Shed & open bagasse storage yard 0 0 10 0 10

9. RCC Chimney 0 0 25 0 25

10. RCC Cooling Tower(only Miscs works-CT Civil included in Ct-Machinery) 0 0 10 20 30

11. Raw Water Tank (25 m dia ) 0 0 20 0 20

12. Sugar factory main buildings (cane carrier / preparation area, 0 0 0 175 175

mill house, evaporator & clarification house, boiling house & sugar house) 0

13. Hot & cold water channels 0 0 0 15 15

13. Sugar machinery foundations 0 0 0 50 50

14. Sugar Godowns 0 0 0 80 80

15. Admin & other related buildings 0 0 10 10 20

16. Residential quarters 0 0 10 10 20

17. Miscellaneous buildings & civil works 0 0 10 10 20

(work shops, stores, injection pump house, weigh bridge, ETP, etc)

Total cost 0 0 285 370 655

Architect fees 2% 0 0 6 7 13

TOTAL 0 0 291 377 668

ANNEXURE 2

PARTICULARS OF BUILDINGS AND CIVIL WORKS



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(Rs.Lakh)

Description Units Invoice Av.Taxes Already To be incurred Total

Price and Incurred Co-gen Sugar(Rs.Lakh) Duties* Project Project

10.00%

1. HP Boiler 1x65 TPH (67 kg/cm2, 495 Deg.C), incl. , dearator, HP Piping, 1 1350 135 0 1485 0 1485

ESP, HP heater, ID/FD fans etc. incl. Erection commissioning & Transport

2. Steam Turbine and auxiliaries ( 1 x 11 MW capacity double extraction cum 1 700 70 0 770 0 770

condensing type, 66 kg/cm2 pressure, 490 Deg.C.)

3. Elecrical evacuation system and tie line cost 1 250 25 0 275 0 275

4. Piping, valves, PRDSH, fittings, etc. 1 50 5 0 55 0 55

5. Sugar Plant Equipments, excl. Boiler & TG Set & including electricals 1 2000 200 0 0 2200 2200

6. DCS & plant automation 1 40 4 0 44 20 64

7. Bagasse & Ash handling Equipments including : 1 200 20 0 220 0 220

Belt conveyor, Yard scraper conveyor, Distribution belts,

Reclaim conveyors, Boiler feeding scraper conveyors, etc.

8. Cooling tower & auxiliaries excluding civil works, 3x1200 m3/hr 150 15 0 165 0 165

9. WTP including raw water pre-treatment, UF-RO-MB plant, base exchanger - 100 10 0 110 0 110

softening system, instruments & electricals

10. Compressed Air System 10 1 0 11 10 21

11. Soft water plant & Storage tanks (included in 9) 0 0 0 0 0 0

12. AC & ventillation system 20 2 0 22 10 32

13. Fire fighting system 20 2 0 22 30 52

0 0 0 0 0 0Total 4890 489 0 3179 2270 5449

* MODVAT benefit will be available from 1st year

ANNEXURE - 3

DETAILS OF INDIGENOUS MACHINERY



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(Rs.Lakh)

Description Already incurred To be incurred TotalCo-gen Sugar Co-gen Sugar


A. Office euipment, 0 0 10 10 20

furniture and fixtures, computer, EPABX system, etc.

B. Other Assets

B.1 Spares, Tools & Tackles 0 0 10 10 20

B.2 Chemical lab equipment 0 0 10 10 20

B.3 Lab Equipment 0 0 10 10 20

B.4. Workshop Equipment 0 0 15 15 30

B.5 Trucks/pic-up vans/cars/Jeeps incl. Harvesters 0 0 10 10 20B.6 Weighing Machines 0 0 10 10 20

B.7 Biomass depot & equipment 0 0 0 0 0

B. 8 Walkie-talkies, dishnet etc. 0 0 5 5 10

0

C. DG set and fuel oil tank 0 0 30 20 50

Total 0 0 110 100 210

ANNEXURE - 4

MISC. FIXED ASSETS



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(Rs.Lakh)

Description Already incurred To be incurred Total

Co-gen Sugar Co-gen SugarProject Project Project Project

Preliminary expenses:

D.P.R./Apprisal/Loan syndication 0 0 5 5 10

Legal fees and other expenses 5 5 10

Total 0 0 10 10 20

Preoperative expenses:

Establishment charges 0 0 5 5 10

Rent, rates and taxes 0 0 5 5 10

Travelling Expenses 0 0 10 10 20Cane Development Expenses 0 0 0 75 75

Start up expenses including wages & salaries 0 0 15 15 30

Project Management charges incl. Supervision 0 0 15 15 30

Project Insurance during construction 0 0 44 40 84

Interest During Construction 0 0 145 132 277

Mortgage expenses, bankers charges, stamp duty, etc. 0 0 5 5 10

Total 0 0 244 302 546

Note : The interest during construction period is net of interest payable during construction and interest

earned during such period.

ANNEXURE - 5

PRELIMINARY AND PREOPERATIVE EXPENSES



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(Rs.Lakh)

Item of Cost Total

Co-gen SugarProject Project

Land 13 24 98

Site Development 35 50 85

Buildings 291 377 668

Indigenous Plant & Machinery 3179 2270 5449

Other Interface Equipment and Assets 110 100 210

Pre operative Expenses 244 302 546

Knowhow and Training 0 0

Total 3872 3123 7056

Contingency 2.0% 2.0% 77 62 1403949 3186 7196

ANNEXURE - 6

ESTIMATES OF CONTINGENCY ESCALATION PROVISION

Considered



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(Rs.Lakh)

Annx Co-gen Sugar Total

Nos. Project ProjectLand 1 33 65 98

Site development 1 35 50 85

Civil Works 2 291 377 668

Indigenous Plant and Machinery 3 3179 2270 5449

Misc.Fixed Assets 4 110 100 210

Preliminary Expenses 5 10 10 20

Pre operative Expenses 5 244 302 546

Contingencies 6 77 62 140

Capital cost of the project 3979 3237 7216

Working capital margin 7 87 322 410

TOTAL COST OF THE PROJECT 4067 3559 7626

(Rs.Lakh)

Sources of funds Co-gen Sugar Total

Project Project

Capital

1. Cogen Proj.- JSL's Equity 703 0 703 ) 9.22% of Cogen Project Cost

2. Sugar Proj.- JSL's Equity 0 1369 1369 ) 38.47% of Sugar Project Cost

3. SDF Quasi Equity 861 0 861 11.30% of Cogen Project Cost

Total equity 1565 1369 2934 38.47% of total Project Cost

Secured Term Loans

1. F.I Loan for Cogen project 2502 0 2502 61.53% of Cogen Project Cost

2. F.I Loan for Sugar Project 0 2190 2190 61.53% of Sugar Project Cost

TOTAL SECURED LOANS 2502 2190 4692 61.53% of total Project Cost

TOTAL SOURCES OF FUNDS 4067 3559 7626

* MNRE capital grant of Rs. 50 lakh will be available

SCHEDULE - A

COST OF PROJECT

MEANS OF FINANCE*



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(Rs.Lakh)

Description Site Dev. & Plant & Misc. Full Total Land GrandBldgs. M/C Fixed Depn. Total

Assets Assets

Straight Line Method

Rate of depreciation % 3.34 5.34 5.34

Acquired cost 753 5449 210 6412 65

Pre operative Expenses 546 64 464 18 546

Contingencies 140 16 119 5 140

Total apportioned cost 834 6032 232 7098 65 7163Depreciation amount 28 322 12 362 6743

Site Devpt. & Bldgs.

Opening Balance 834 806 778 750 722 694 667 639 611 583

Depreciation 28 28 28 28 28 28 28 28 28 28

Closing Balance 806 778 750 722 694 667 639 611 583 555

Plant and Machinery

Opening Balance 6032 5710 5388 5066 4744 4421 4099 3777 3455 3133

Depreciation 322 322 322 322 322 322 322 322 322 322

Closing Balance 5710 5388 5066 4744 4421 4099 3777 3455 3133 2811

Misc. Fixed Assets

Opening Balance 232 220 208 195 183 170 158 146 133 121

Depreciation 12 12 12 12 12 12 12 12 12 12

Closing Balance 220 208 195 183 170 158 146 133 121 108

Total Depreciation (SLM) 362 362 362 362 362 362 362 362 362 362

ANNEXURE - 18

CALCULATION OF DEPRECIATION



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Written Down Value Method:Rate of depreciation % 10.00 15.00 15.00 Total

First year depreciation 83 905 35 1023

Second year depreciation 75 769 30 874

Third year depreciation 68 654 25 746

Fourth year depreciation 61 556 21 638

Fifth year depreciation. 55 472 18 545

Sixth year depreciation 49 401 15 466

Seventh year depreciation 44 341 13 399

Eighth year depreciation 40 290 11 341Ninth year depreciation 36 247 10 292

Tenth year depreciation 32 210 8 250

ANNEXURE - 18

CALCULATION OF DEPRECIATION (CONTD.)



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(Rs.Lakh)

Description Operating Years

1 2 3 4 5 6 7 8 9 10

Installed Capacity (Season) TCH 114 114 114 114 114 114 114 114 114 114

Number of Hours/Day 22 22 22 22 22 22 22 22 22 22

Number of working days 130 160 160 160 160 160 160 160 160 160

Annual Installed Crushing Capacity MT 326040 401280 401280 401280 401280 401280 401280 401280 401280 401280

Capacity utilisation % 90 95 100 100 100 100 100 100 100 100

Estimated Annual Crushing 293436 381216 401280 401280 401280 401280 401280 401280 401280 401280

Estimated Sugar Recovery 0.1150 0.1175 0.1200 0.1200 0.1200 0.1200 0.1200 0.1200 0.1200 0.1200

Annual Sugar Production MT 33745 44793 48154 48154 48154 48154 48154 48154 48154 48154

Levi Sugar sale % 10 10 10 10 10 10 10 10 10 10Levi Sugar sale 13370 451 599 644 644 644 644 644 644 644 644

Free Sugar sale % 90 90 90 90 90 90 90 90 90 90

Free sugar Rate 18000 18000 18000 18000 18000 18000 18000 18000 18000 18000 18000

Free Sugar sale Rs. 0 5467 7256 7801 7801 7801 7801 7801 7801 7801 7801

Annual income from sugar (Rs.Lakh) 5918 7855 8445 8445 8445 8445 8445 8445 8445 8445

Est. Molasses Recovery % 4 4 4 4 4 4 4 4 4 4

Annual Molasses production 11737 15249 16051 16051 16051 16051 16051 16051 16051 16051

Sale of Molasses @Rs.3000/MT 3000 352 457 482 482 482 482 482 482 482 482

Total Sugar Income 6270 8313 8926 8926 8926 8926 8926 8926 8926 8926

ANNEXURE - 8

ESTIMATED ANNUAL PRODUCTION AND ITS SALES VALUE



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(Rs.Lakh)


1 2 3 4 5 6 7 8 9 10

Co-generation Project

Exportable Cap.(Season-160 days) KW 7350 7350 7350 7350 7350 7350 7350 7350 7350 7350

Exportable Cap.(off-season-140 days) KW 9650 9650 9650 9650 9650 9650 9650 9650 9650 9650

Number of Hours/Day(season) 22 22 22 22 22 22 22 22 22 22

Number of Hours/Day(off season) 24 24 24 24 24 24 24 24 24 24

Number of Working Days (season) 130 160 160 160 160 160 160 160 160 160

Number of Working Days(off-season) 140 140 140 140 140 140 140 140 140 140

Annual Exportable Capacity ('000 KWh) 53445 58296 58296 58296 58296 58296 58296 58296 58296 58296

Capacity utilisation 80% 90% 95% 95% 95% 95% 95% 95% 95% 95%

Annual Power Sold to MSEB ('000 KWh) 42756 52466 55381 55381 55381 55381 55381 55381 55381 55381

Annual Sale to MSEB ('000 KWh) 42756 52466 55381 55381 55381 55381 55381 55381 55381 55381

A) Season Operation ( 160 Days)

Sale of Power to MSEB ('000 KWh) 25872 16817 23285 24578 24578 24578 24578 24578 24578 24578 24578

Selling Price (Rs./KWH) 4.15 4.15 4.15 4.15 4.15 4.15 4.15 4.15 4.15 4.15

Annual Sales Realisation (Rs.Lakh) 698 966 1020 1020 1020 1020 1020 1020 1020 1020

Total Sales Value (Rs. Lakh) 698 966 1020 1020 1020 1020 1020 1020 1020 1020

ANNEXURE - 8

ESTIMATED ANNUAL PRODUCTION AND ITS SALES VALUE (CONTD.)



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(Rs.Lakh)


1 2 3 4 5 6 7 8 9 10B) Off-Season Operation (140 Days)

Sale of Power to MSEB ('000 KWh) 32424 25939 29182 30803 30803 30803 30803 30803 30803 30803 30803


Annual Sales Realisation (Rs.Lakh) 1076 1211 1278 1278 1278 1278 1278 1278 1278 1278


Total Sales Value (Rs. Lakh) 1076 1211 1278 1278 1278 1278 1278 1278 1278 1278

Total Annual Cogen Income 1774 2177 2298 2298 2298 2298 2298 2298 2298 2298

Total Annual Income (Sugar&Cogen) 11 8044 10490 11225 11225 11225 11225 11225 11225 11225 11225

Add: Opening Stock of WIP & FGs. 1436 1820 1913 1940 1968 2000 2034 2068 21048044 11927 13044 13138 13165 13193 13225 13258 13293 13329

Less:Closing Stock of WIP & FGs. 1436 1820 1913 1940 1968 2000 2034 2068 2104 2142

Total Annual Income (Sugar&Cogen) 6608 10107 11131 11197 11196 11193 11191 11190 11189 11187

(Rs.Lakh)

1 2 3 4 5 6 7 8 9 10

1. Cane Crushing, MT 293436 381216 401280 401280 401280 401280 401280 401280 401280 401280

2. Cane price incl. Harvesting & 1450 1450 1450 1450 1450 1450 1450 1450 1450 1450

Transportation charges &

Purchase tax, Rs. / MT

3. Total Cane cost 4255 5528 5819 5819 5819 5819 5819 5819 5819 5819

4. Biomass, season&off-season, MT 38,078 30462 34270 36174 36174 36174 36174 36174 36174 36174 36174

5. Rate (Rs./MT) 1200 1200 1260 1323 1389 1459 1532 1608 1689 1773 1862

6. Total Biomass cost 366 432 479 503 528 554 582 611 641 673

Total Fuel 366 432 479 503 528 554 582 611 641 673

Total Cost of Raw Materials & Fuel 4620 5959 6297 6321 6346 6373 6400 6429 6460 6492

ANNEXURE - 8

ESTIMATED ANNUAL PRODUCTION AND ITS SALES VALUE (CONTD.)

ANNEXURE - 9

Operating Years

PARTICULARS OF INDIGENOUS RAW MATERIALS



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(Rs.Lakh)

1 2 3 4 5 6 7 8 9 10

Consumables

Lubricants, ETP chemicals, etc.:cogen 6000 48 59 63 63 63 69 76 83 92 101

(@ Rs. 0.07 / kwh)

Lub.oils & Chemicals for sugar plant 20 59 76 80 80 80 80 80 80 80 80

(Rs. 25 / MT)

Total 107 136 143 143 143 149 156 164 172 181

Packing MaterialBags for Sugar 40 135 197 212 233 256 282 310 341 375 413

(100 kg each or 2x50 kg each)

Total 135 197 212 233 256 282 310 341 375 413

Total Consumables+Packing 242 333 355 376 399 431 466 505 547 594

(Rs.Lakh)

1 2 3 4 5 6 7 8 9 10

Water Requirement 18 19 20 21 22 23 24 25 27 28

(Avg. 1200 KL/day for 300 days @ Rs. 5 / KL)

Total 18 19 20 21 22 23 24 25 27 28

Operating Years

ANNEXURE - 10

PARTICULARS OF CONSUMABLES AND PACKING MATERIALS

ANNEXURE - 11

PARTICULARS OF UTILITIES

Operating Years



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(Rs.Lakh)

AnnualWages 1 2 3 4 5 6 7 8 9 10

A. Workers: (Rs.)

Highly Skilled Workers 12

144000 17 17 17 17 17 17 17 17 17 17

Skilled A Category 15

108000 16 16 16 16 16 16 16 16 16 16

Skilled B Category 15

90000 14 14 14 14 14 14 14 14 14 14

Semi-skilled 20

84000 17 17 17 17 17 17 17 17 17 17Unskilled 25

72000 18 18 18 18 18 18 18 18 18 18

Supervisors A Category 4

210000 8 8 8 8 8 8 8 8 8 8

sub-total wages 90 90 90 90 90 90 90 90 90 90

Add : Increment 10% 9 18 27 36 45 54 63 72 81

Add : Labour Welfare 25% 23 25 27 29 32 34 36 38 41 43

Total Direct Wages 113 124 135 147 158 169 180 192 203 214

ANNEXURE - 12

REQUIREMENTS OF DIRECT LABOUR AND CALCULATION OF WAGES

Operating Years



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(Rs.Lakh)

Annual

Wages 1 2 3 4 5 6 7 8 9 10

B. Supervisory Staff

Chief Engineer 1

330000 3 3 3 3 3 3 3 3 3 3

Electrical Engineer 2

270000 5 5 5 5 5 5 5 5 5 5

Mechanical Engineers 2

270000 5 5 5 5 5 5 5 5 5 5

Instrument Engineers 1

270000 3 3 3 3 3 3 3 3 3 3Electricians/Fitters 6

150000 9 9 9 9 9 9 9 9 9 9

Sugar Factory Staff 350

120000 420 420 420 420 420 420 420 420 420 420

Sub-total wages 446 446 446 446 446 446 446 446 446 446

Add : Increment 10% 45 89 134 178 223 267 312 357 401

Add : Labour Welfare 25% 111 123 134 145 156 167 178 189 201 212

Total Supervisory Salaries 557 613 669 724 780 836 892 947 1003 1059

Total Direct Wages/Salaries 670 737 804 871 938 1005 1072 1139 1206 1273

Number of Employees 453

REQUIREMENTS OF DIRECT LABOUR AND CALCULATION OF WAGES (CONTD.)

ANNEXURE - 12



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(Rs.Lakh)

% 1 2 3 4 5 6 7 8 9 10

On Buildings 1.0% 8 6 7 7 7 7 7 8 8 9

On Plant & Machinery 2.0% 87 103 109 109 109 114 120 126 132 139

On Other Fixed Assets 1.0% 3 2 2 2 2 2 2 2 3 3

Total 98 111 117 117 117 123 130 136 143 150

(Rs.Lakh)

1 2 3 4 5 6 7 8 9 10

Rent,rates and taxes 1 1 1 1 1 2 2 2 2 2

Electricity charges 1 1 1 1 1 2 2 2 2 2

Insurance on Fixed Assets 0.27% 17 17 17 17 17 17 17 17 17 17

Insurance on Stocks 1% 5 7 7 7 7 8 8 8 8 8

Contingencies 10% 2 3 3 3 3 3 3 3 3 3

Total 27 29 30 30 30 31 31 32 32 33

Operating Years

Operating Years

ANNEXURE - 13

PARTICULARS OF REPAIRS AND MAINTENANCE

ANNEXURE - 14

PARTICULARS OF OTHER MANUFACTURING EXPENSES



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(Rs.Lakh)

Annual

Expenses 1 2 3 4 5 6 7 8 9 10A. Staff

Commercial Officer- cogen 1

420000 4 4 4 4 4 4 4 4 4 4

General Manager 1

600000 6 6 6 6 6 6 6 6 6 6

Clerical 2 Category 1

150000 2 2 2 2 2 2 2 2 2 2

Clerical 4 Category 1

96000 1 1 1 1 1 1 1 1 1 1

Accountant 1240000 2 2 2 2 2 2 2 2 2 2

Peons 2

84000 2 2 2 2 2 2 2 2 2 2

sub-total 17 17 17 17 17 17 17 17 17 17

Add : Increment 10% 2 3 5 7 8 10 12 13 15

Add : Staff Welfare 25% 4 5 5 5 6 6 7 7 8 8

Total Staff Salaries 21 23 25 27 29 31 33 36 38 40

No.of Admin. Staff 7

Operating Years

ANNEXURE - 15

REQUIREMENTS OF ADMINISTRATIVE OVERHEADS



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(Rs.Lakh)

Annual

Expenses 1 2 3 4 5 6 7 8 9 10

B. Admin. Overheads

Printing and stationery 10 8 9 10 10 11 13 14 15 17 19

Postage & Telephone 10 8 9 10 10 11 13 14 15 17 19

Travelling & Conveyance 10 8 9 10 10 11 13 14 15 17 19

Legal & other professional charges 10 8 9 10 10 11 13 14 15 17 19

Rents, rates and taxes 10 10 10 10 11 12 13 15 16 18 19

Library Expenses 5 5 3 3 3 3 3 4 4 4 5

Misc. Expenses 5 5 5 5 6 6 7 7 8 9 10

Total B 52 54 56 61 67 74 81 89 98 108

Total Admin. Overheads 73 77 81 88 96 105 115 125 136 148

(Rs.Lakh)

1 2 3 4 5 6 7 8 9 10

S & D Expenses

Sales Office & Gen.Expenses 2 2 2 2 2 2 2 3 3 3 3

Advt. and Sales Promotion 2 2 2 2 2 2 2 3 3 3 3

Travelling Costs 2 2 2 2 3 3 3 4 4 4 5

Total 5 6 7 7 7 8 9 9 10 11

Total S & D Overheads 5 6 7 7 7 8 9 9 10 11

Operating Years

ANNEXURE - 16

ANNEXURE - 15

REQUIREMENTS OF ADMINISTRATIVE OVERHEADS (CONTD.)

Operating Years

PARTICULARS OF SELLING AND DISTRIBUTION OVERHEADS



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(Rs.Lakh)

1 2 3 4 5 6 7 8 9 10

No. of Instalments 12

Rate of Interest 0.135

Institutional Loan for Cogeneration

Opening balance 0 2502 2085 1668 1251 834 417 0 0 0

Add inc during half year 2502

Less half yearly inst 0 209 209 209 209 209 209 0 0 0

Half yearly closing bal 2502 2294 1877 1460 1043 626 209 0 0 0

Half yearly interest 169 169 141 113 84 56 28 0 0 0

Opening balance 2502 2294 1877 1460 1043 626 209 0 0 0



Half yearly closing balance 2502 2085 1668 1251 834 417 0 0 0 0


Increase in loans 2502

Annual instalments 0 417 417 417 417 417 417 0 0 0

Annual interest charges 338 324 267 211 155 99 42 0 0 0

ANNEXURE - 17

Operating Years

REPAYMENT OF TERM LOANS AND CALCULATION OF INTEREST



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Rs. Lakh

1 2 3 4 5 6 7 8 9 10

No. of Instalments 10


SDF Quasi Equity

Opening balance 0 861 861 861 689 517 345 172 0 0


Less half yearly inst 0 0 0 86 86 86 86 86 0 0Half yearly closing bal 861 861 861 775 603 431 258 86 0 0


Opening balance 861 861 861 775 603 431 258 86 0 0



Half yearly closing balance 861 861 861 689 517 345 172 0 0 0





ANNEXURE - 17

REPAYMENT OF TERM LOANS AND CALCULATION OF INTEREST (CONTD.)

Operating Years



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(Rs.Lakh)

1 2 3 4 5 6 7 8 9 10

No. of Installments 12


Institutional Loan for Sugar project

Opening balance 0 2190 1825 1460 1095 730 365 0 0 0





Opening balance 2190 2008 1643 1278 913 548 183 0 0 0








ANNEXURE - 17

REPAYMENT OF TERM LOANS AND CALCULATION OF INTEREST (CONTD.)

Operating Years



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(Rs.Lakh)

Annx.

Nos. 1 2 3 4 5 6 7 8 9 10

Exportable Cap.(Season-160 days) KW 7350 7350 7350 7350 7350 7350 7350 7350 7350 7350

Exportable Cap.(off-season-140 days) KW 9650 9650 9650 9650 9650 9650 9650 9650 9650 9650

Number of Hours/Day(season) 22 22 22 22 22 22 22 22 22 22

Number of Hours/Day(off season) 24 24 24 24 24 24 24 24 24 24

Number of Working Days (season) 130 160 160 160 160 160 160 160 160 160

Number of Working Days(off-season) 140 140 140 140 140 140 140 140 140 140

Annual Exportable Capacity ('000 KWh) 53445 58296 58296 58296 58296 58296 58296 58296 58296 58296

Capacity utilisation % 80% 90% 100% 100% 100% 100% 100% 100% 100% 100%

Estimated Annual Crushing 293436 381216 401280 401280 401280 401280 401280 401280 401280 401280

Net Total Income (Sugar + Cogen) 6608 10107 11131 11197 11196 11193 11191 11190 11189 11187Indigenous raw materials 9 4620 5959 6297 6321 6346 6373 6400 6429 6460 6492

Consumables 10 107 136 143 143 143 149 156 164 172 181

Packing materials 10 135 197 212 233 256 282 310 341 375 413

Utilities 11 18 19 20 21 22 23 24 25 27 28

Direct labour cost 12 670 737 804 871 938 1005 1072 1139 1206 1273

Repairs & Maintenance 13 98 111 117 117 117 123 130 136 143 150

Other manufacturing expenses 14 27 29 30 30 30 31 31 32 32 33

COST OF PRODUCTION 5675 7188 7623 7736 7853 7986 8123 8266 8415 8570

Add opening stocks of W.I.P 106 135 126 127 128 129 130 131 132

Add opening stocks of F.G 1330 1685 1787 1813 1841 1872 1904 1937 1972Less closing stocks of W.I.P 106 135 126 127 128 129 130 131 132 133

Less closing stocks of F.G 1330 1685 1787 1813 1841 1872 1904 1937 1972 2008

A. Estimated cost of manufacture 4238 6805 7529 7709 7825 7954 8090 8232 8379 8532

Operating Years

ESTIMATED COST OF PRODUCTION AND PROFITABILITY STATEMENT

SCHEDULE - B



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(Rs.Lakh)

Annx.

Nos. 1 2 3 4 5 6 7 8 9 10

Net Total Income 6608 10107 11131 11197 11196 11193 11191 11190 11189 11187

A. Estimated cost of manufacture 4238 6805 7529 7709 7825 7954 8090 8232 8379 8532

B. Administrative overheads 15 73 77 81 88 96 105 115 125 136 148

C. Selling & distribn. overheads 16 5 6 7 7 7 8 9 9 10 11

E. Total cost of production 4316 6888 7617 7804 7929 8067 8213 8366 8525 8691

G. EBIDT 2292 3219 3515 3393 3268 3126 2978 2824 2663 2496

Financial Expenses:

1. Interest on Cogen Loan(s) 17 338 324 267 211 155 99 42 0 0 0

2. Interest on Sugar Loan 17 296 283 234 185 136 86 37 0 0 0

3. Interest on SDF Loan 17 116 116 116 110 87 64 41 17 0 0

4. Int. on borrowing for W/C 7 179 226 238 241 245 249 254 258 263 268

H. Total Financial Expenses 929 949 856 748 623 498 374 276 263 268

I. Income before depn. 1363 2270 2659 2645 2645 2628 2604 2548 2400 2227

J. Depreciation 18 362 362 362 362 362 362 362 362 362 362

K. Preliminary expenses w/o 2 2 2 2 2 2 2 2 2 2L. Operating profit 998 1906 2294 2281 2281 2263 2240 2184 2036 1863

M. Provision for taxation 19 120 229 275 273 273 769 761 742 692 633

N. Profit After Tax (PAT) 879 1677 2019 2008 2007 1494 1479 1442 1344 1230

O. Dividend 19 0 0 0 0 0 0 0 0 0 0

P. Retained Earnings 879 1677 2019 2008 2007 1494 1479 1442 1344 1230

M. Cumulative Retained Earnings 879 2556 4575 6583 8590 10084 11563 13005 14349 15578

SCHEDULE - B

ESTIMATED COST OF PRODUCTION AND PROFITABILITY STATEMENT (CONTD.)

Operating Years



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(Rs.Lakh)

1 2 3 4 5 6 7 8 9 10

Profit Before Tax:(PBT) 998 1906 2294 2281 2281 2263 2240 2184 2036 1863

Add:Depreciation SLM 362 362 362 362 362 362 362 362 362 362

Total 1361 2268 2657 2643 2643 2626 2602 2546 2398 2225

Less:depreciation WDV 1023 874 746 638 545 466 399 341 292 250

Balance 338 1395 1910 2006 2098 2160 2204 2205 2106 1975

Less:Unabsorbed depreciation b/f 0 0 0 0 0 0 0 0 0

Less:Unabsorbed depreciation c/f 0 0 0 0 0 0 0 0 0 0

Book Profit 338 1395 1910 2006 2098 2160 2204 2205 2106 1975

MAT 11.99 120 229 275 273 273 271 269 262 244 223

Normal Tax 33.99 0 0 0 0 0 769 761 742 692 633Actual tax liability 120 229 275 273 273 769 761 742 692 633

Provision for tax 879 1677 2019 2008 2007 1494 1479 1442 1344 1230

Profit after tax 120 229 275 273 273 769 761 742 692 633

Less:Dividend 10 0 0 0 0 0 0 0 0 0 0

Retained earnings 120 229 275 273 273 769 761 742 692 633

Cumulative retained earnings 120 348 623 897 1170 1940 2701 3443 4135 4769

* U/s 115(J) of I.Tax Act,wherever applicable

ANNEXURE - 19

PROVISION FOR TAXATION AND DIVIDEND (INCOME TAX WORKING)

Operating Years



26/35


(Rs.Lakh)

1 2 3 4 5 6 7 8 9 10

Profit after tax 879 1677 2019 2008 2007 1494 1479 1442 1344 1230

Depn.+Preliminary Exps. 364 364 364 364 364 364 364 364 364 364

Project fixed asset cost w/o 0 0 0 0 0 0 0 0 0 0

Interest On Term Loan 633 607 501 396 290 185 79 0 0 0

Total Inflow 1876 2649 2885 2768 2662 2043 1922 1806 1708 1594

Interest on Term Loans 633 607 501 396 290 185 79 0 0 0

Instalments of Term Loans 0 782 782 954 954 954 954 172 0 0

Total Outflow 633 1389 1284 1350 1245 1139 1034 172 0 0

Annual DSCR 2.96 1.91 2.25 2.05 2.14 1.79 1.86

Average DSCR 2.14

Maximum DSCR 2.96

Minimum DSCR 1.79

SCHEDULE - C

DEBT SERVICE COVERAGE RATIO

Operating Years



27/35


(Rs.Lakh)

Constn.

Period 1 2 3 4 5 6 7 8 9 10

Sources of Funds:

EBIT 1927 2855 3150 3029 2904 2761 2614 2460 2299 2131

Depreciation 362 362 362 362 362 362 362 362 362 362

Preliminary expenses, Know how 2 2 2 2 2 2 2 2 2 2

Investment allowance

Increase in

a)Capital 2072

b)SDF Quasi Equity 861c)Secured Term Loans 4692

c)GoM Capital Subsidy 0

d)Cash Credit Facility 1378 357 95 27 28 32 34 36 37 39

Sale of fixed assets

Sale of investments

Internal Cash Accruals

Decrease in Exps.

Decrease in current assets

TOTAL SOURCES OF FUNDS 7626 3669 3576 3610 3420 3296 3158 3012 2860 2701 2535

SCHEDULE - D

CASH FLOW STATEMENT

Operating Years



28/35


(Rs.Lakh)

Constn.

Period 1 2 3 4 5 6 7 8 9 10

Disposition of Funds:

Project capital expenditure 7196

Preliminary expenses 20

Decrease in

a) Secured Term Loans 0 782 782 782 782 782 782 0 0 0

Increase in

i) Net Working Capital 1837 476 127 36 38 43 45 47 50 52

Total Interest 929 949 856 748 623 498 374 276 263 268

Taxation 120 229 275 273 273 769 761 742 692 633Dividends 0 0 0 0 0 0 0 0 0 0

TOTAL DISPOSN. OF FUNDS 7216 2886 2435 2040 1840 1716 2093 1962 1065 1005 954

Opening cash balance 0 410 1194 2334 3904 5485 7066 8131 9181 10975 12671

Accrual/deficit 410 784 1141 1570 1581 1580 1066 1050 1794 1696 1581

Closing cash balance 410 1194 2334 3904 5485 7066 8131 9181 10975 12671 14252

SCHEDULE - D

CASH FLOW STATEMENT (CONTD.)

Operating Years



29/35


(Rs.Lakh)

Constn.

Period 1 2 3 4 5 6 7 8 9 10

Sources of funds:

Share holders funds

Capital 2934 2934 2934 2934 2934 2934 2934 2934 2934 2934 2934

Reserves 879 2556 4575 6583 8590 10084 11563 13005 14349 15578

Sub total 2934 3812 5490 7509 9517 11524 13018 14497 15938 17282 18512

Loan funds

Secured Term Loans 4692 4692 3910 3128 2346 1564 782 0 0 0 0

Cash credit facility 0 1378 1735 1830 1857 1885 1918 1951 1987 2024 2064

FC LoanSDF Loan

Sub total 4692 6070 5645 4958 4203 3449 2700 1951 1987 2024 2064

Total 7626 9883 11135 12467 13720 14973 15718 16448 17925 19307 20576

SCHEDULE - E

BALANCE SHEET FORECAST

Operating Years



30/35


(Rs.Lakh)

Constn.

Period 1 2 3 4 5 6 7 8 9 10

Application of funds

Fixed Assets

a.Gross block 7196 7196 7196 7196 7196 7196 7196 7196 7196 7196 7196

b.Less: depn.to date 0 362 725 1087 1449 1812 2174 2537 2899 3261 3624

c.Net fixed block 7196 6834 6471 6109 5747 5384 5022 4660 4297 3935 3573

d.Capital WIP

Investments 0 0 0 0 0 0 0 0 0 0 0

Current assets & advances

a.Inventories 1560 1973 2081 2117 2154 2198 2243 2290 2340 2392

b.Sundry debtors 277 340 359 359 359 359 359 359 359 359c.Cash and bank balances 410 1194 2334 3904 5485 7066 8131 9181 10975 12671 14252

d.Other current assets 0 0 0 0 0 0 0 0 0 0

Sub total ( a : e ) 410 3031 4647 6344 7961 9579 10688 11783 13624 15370 17003

Less:C/L & provisions

a.Current liabilities

b.Provisions

Net current assets 410 3031 4647 6344 7961 9579 10688 11783 13624 15370 17003Misc.exps.to the extent not w/o 20 18 16 14 12 10 8 6 4 2 0

Total 7626 9883 11135 12467 13720 14973 15718 16448 17925 19307 20576

Balance sheet check 0 0 0 0 0 0 0 0 0 0 0

BALANCE SHEET FORECAST (CONTD.)

Operating Years

SCHEDULE - E



31/35


(Rs.Lakh)

1 2 3 4 5 6 7 8 9 10

1. EBIT to Capital Employed 23.19 28.91 28.19 24.73 21.82 19.89 18.10 15.75 13.80 12.13

2. Return on Investment

i) PBT to Capital Employed 10.10 17.12 18.40 16.63 15.23 14.40 13.62 12.18 10.55 9.05

ii) PAT to Capital Employed 8.89 15.06 16.20 14.63 13.41 9.51 8.99 8.04 6.96 5.98

iii) PBT to Net Worth 26.19 34.72 30.56 23.97 19.79 17.39 15.45 13.70 11.78 10.06

iv) PAT to Net Worth 23.05 30.56 26.89 21.09 17.42 11.48 10.20 9.04 7.78 6.64

3. PBT to Sales 15.11 18.86 20.61 20.37 20.37 20.22 20.02 19.52 18.20 16.65

4. Raw Materials Cost to Sales 69.92 58.96 56.57 56.45 56.68 56.94 57.19 57.46 57.74 58.03

5. Operating Ratio 64.14 67.33 67.64 68.85 69.89 71.06 72.29 73.56 74.89 76.27

6. Interest Coverage Ratio 2.47 3.39 4.11 4.54 5.25 6.28 7.97 10.24 10.12 9.307. Fixed Assets Turnover Ratio 0.97 1.56 1.82 1.95 2.08 2.23 2.40 2.60 2.84 3.13

8. Debt Equity Ratio 1.23 0.71 0.42 0.25 0.14 0.06 0.00 0.00 0.00 0.00

9. Ratio of N/W + L/T Liabilities to Fixed Assets 1.24 1.45 1.74 2.06 2.43 2.75 3.11 3.71 4.39 5.18

10.Current Ratio 2.20 2.68 3.47 4.29 5.08 5.57 6.04 6.86 7.59 8.24

SCHEDULE - F

ANALYTICAL AND COMPARATIVE RATIOS

Operating Years



32/35


(Rs.Lakh)

Years PAT DEP Prelim. Total Cash Net Years

Expns. Cash outgo Cash

Inflow Inflow

7626 7626

1 879 362 0 2 1243 -6383

2 1677 362 0 2 2042 -4341

3 2019 362 0 2 2384 -1958

4 2008 362 0 2 2372 414

5 2007 362 0 2 2372 2786

6 1494 362 0 2 1858 4645

7 1479 362 0 2 1843 6488

8 1442 362 0 2 1806 82939 1344 362 0 2 1708 10002

10 1230 362 0 2 1594 11596

The payback period is between 3 to 4 years

SCHEDULE - G

PAYBACK PERIOD



33/35


(Rs.Lakh)

Constn.

Period 1 2 3 4 5 6 7 8 9 10

IRR & Total Project Cost

Capital Employed -7626

Profit After Tax 879 1677 2019 2008 2007 1494 1479 1442 1344 1230

Add : Depn.+ Prelim Expenses 364 364 364 364 364 364 364 364 364 364

Add : Interest on Term Loan 633 607 501 396 290 185 79 0 0 0

1876 2649 2885 2768 2662 2043 1922 1806 1708 1594

Less : Increase in Inventory 1560 413 108 36 38 43 45 47 50 52

Gross cash inflow 317 2236 2777 2732 2625 2000 1877 1759 1659 1542

Add : Inventory 2392

Add :Terminal Value of Project % 381-7626 317 2236 2777 2732 2625 2000 1877 1759 1659 4315

IRR 22.58%

IRR : PAT & Equity

Equity -2934

PAT 879 1677 2019 2008 2007 1494 1479 1442 1344 1230

Add : Depn.+ Prelim. expns. 364 364 364 364 364 364 364 364 364 364

Add : IA

1243 2042 2384 2372 2372 1858 1843 1806 1708 1594

Less : Increase in Inventory 1560 413 108 36 38 43 45 47 50 52

Gross cash inflow -317 1629 2276 2336 2334 1815 1798 1759 1659 1542

Add : Inventory 2392

Add :Terminal Value of Project % 381

-2934 -317 1629 2276 2336 2334 1815 1798 1759 1659 4315

IRR 43.17%

SCHEDULE - H

INTERNAL RATE OF RETURN

Operating Years



34/35


Name and Address : M/s. Jakraya Sugar Ltd.

Chelekar Galli, Mangalwedha - 413 305

District Solapur

Constitution & Type : Public Limited Company

Products Sugar and Cogenerated Power

Installed Capacity - Sugar 2500 TCD

Installed Capacity - Co-gen : 11.00 MW

: 7.35 MW Exportable Cap.(Season-160 days)

: 9.65 MW Exportable Cap.(off-season-140 days)

Capacity utilisation : Year I II III & onwards

- Sugar 90% 95% 100%

- Cogen Power 80% 90% 95%

Total Project Cost : : Co-gen Sugar Total

Project Project

Land and Site Development 68 115 183

Civil Works 291 377 668

Indigenous Plant and Machinery 3179 2270 5449

Misc.Fixed Assets 110 100 210

Prelim. & Preop. Expenses 254 312 566

Contingencies 77 62 140

Working capital margin 87 322 410Total 4067 3559 7626

Means of Finance :

1. Cogen Proj.-JSL's Equity 703 0 703

2. Sugar Proj.- JSL's Equity 0 1369 1369

3. SDF Quasi Equity 861 0 861

4. F.I.Loan(s) 2502 2190 4692

Total 4067 3559 7626

HIGHLIGHTS OF THE REPORT



35/35


First Fifth Tenth

Year Year Year

Estimated W/C Requirements Rs.Lakh 1837 2514 2751

Estimated Annual Turnover Rs.Lakh 6608 11196 11187

Profit Before Tax Rs.Lakh 998 2281 1863

Accumulated Cash Surplus Rs.Lakh 1194 7066 14252

Employment potential (Fact+Admin) Nos. 460 460 460

Debt Service Coverage Ratio Average 2.14

(DSCR) Maximum 2.96

(7 years repayment, 1 year moratorium) Minimum 1.79

Payback period Years 3 to 4

Internal Rate of Return

on Total Equity 43.17%

on total project cost 22.58%

Expected Period for Implementation Months 8 to 9

HIGHLIGHTS OF THE REPORT (CONTD.)


Documents

Jakaraya Financial Analysis March 07, 09