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Sugar Factory Case

The document appears to be a financial model template for a proposed sugar and co-generation plant project. It includes assumptions and projections for 10 years around project costs, funding, revenues, expenses, debt schedule, depreciation and working capital. Key details include a total project cost of INR 1,295 million to be funded with 35% equity and 65% debt. Revenue is projected from the sale of sugar at INR 28,000 per tonne and power generated at INR 5 per unit. Operating expenses include sugarcane costs, salaries, repairs and maintenance. The model calculates profitability metrics like net income, cash flows and IRR over the 10 year period.

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Narayan Prusty
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77 views21 pages

Sugar Factory Case

The document appears to be a financial model template for a proposed sugar and co-generation plant project. It includes assumptions and projections for 10 years around project costs, funding, revenues, expenses, debt schedule, depreciation and working capital. Key details include a total project cost of INR 1,295 million to be funded with 35% equity and 65% debt. Revenue is projected from the sale of sugar at INR 28,000 per tonne and power generated at INR 5 per unit. Operating expenses include sugarcane costs, salaries, repairs and maintenance. The model calculates profitability metrics like net income, cash flows and IRR over the 10 year period.

Uploaded by

Narayan Prusty
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
You are on page 1/ 21

Template

All Numbers in INR Million


Dates - Annual Jan-14 Dec-14 Dec-15 Dec-16 Dec-17
Year Year-1 Year-2 Year-3 Year-4
Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23
Year-5 Year-6 Year-7 Year-8 Year-9 Year-10
Assumptions

Project Cost

Fixed Assets (Plant & Machinery) 1,200


Total Hard Cost 1,200 Year-1
IDC (Soft Cost) 95 Year Qtr-1 Qtr-2 Qtr-3
TOTAL COST OF THE PROJECT 1,295 Phasing % 10% 10% 15%

Funding Assumptions
Equity 35%
Debt 65% IRR Sensitivity

Revenue Assumptions 23.4%


Sugar Plant 9%
Sugar Plant Capacity 1000 TCD 10%
Number of Working Days 240 11%
Hours of Work Per Day 24 12%
Capacity utilisation 80% 85% 90% 13%
Estimated Sugar Recovery 9% 14%
Sugar Sale Rate 28000 Rs./Tonne Escalation 5% 15%
CO-Gen Plant
Installed Capcaity 20 MW
Internal Consumption 40%
Capaicty Utilisation 80% 85% 90%
Co-Gen Sell Rate 5 Rs./Unit Escalation 5%

Operating Expenses
Sugarcane Cost 2000 Rs./Tonne Escalation 4%
Salaries 7.50% % of Sales
Consumables 5% % of Sales
Other Expenses 2% % of Sales
Repairs and Maintenance 1% % of Sales

Depreciation Rate
Company Act (Straight Line Method)
Fixed Assets 5.28%
IT Act (Written Down Value)
Fixed Assets 15%

Taxes
Corporate Tax Rate 33%
MAT Rate 20%
Working Capital Assumptions Days
Inventory 40
Creditors 15

Terms of Debt
Interest Rate 10%
Loan Repayment Annual - At the end of period
Tenure 6 years post COD
Moratorium 1 year post COD

Interest Income 7%
Terminal Value 25% Scrap Value of Residual Net Assets
r-1 Year-2
Qtr-4 Qtr-1 Qtr-2 Qtr-3 Qtr-4
15% 15% 15% 10% 10%

RR Sensitivity

0% 20% 40% 60% 80% 85%


IDC
All Numbers in INR Million
Dates - Annual Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15
Year Qtr-1 Qtr-2 Qtr-3 Qtr-4 Qtr-1
Effective Days 91 92 92 90 91

Opening balance - 84 168 295 421


Phasing % 10% 10% 15% 15% 15%
Add inc during the quarter 84 84 126 126 126
Quarterly closing balance 84 168 295 421 547

Quarterly Interest Capitalised 2 4 7 10 14

Total IDC Phase-I 95


Sep-15 Dec-15 Mar-16 Mar-15 Mar-16
Qtr-2 Qtr-3 Qtr-4
92 91 91

547 673 757 - 421


15% 10% 10%
126 84 84 421 421
673 757 841 421 841

17 19 21
Annual Sales
All Numbers in INR Million
Dates - Annual Mar-14 Mar-15 Mar-16 Mar-17
Year Year-1 Year-2 Year-3

Sugar Plant Capacity 1000


Number of Working Days 240
Capacity utilisation 80%
Cane Crushed 192000
Sugar Recovery 9%
Annual Sugar Production 17280
Sugar Price 5% 28000
Annual Sugar Sales 484

Co-Gen Capacity MW 20
Number of Working Days 240
Hours of Work Per Day 24
Capacity Utilisation 80%
Capacity For Internal Use MW 40%
Capacity For Sale of Power MW 60%
Power Produced MU 55
Power Sale Rate 5% 5.00
Annual Power Sale 276

Total Sale 760


Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 Mar-26
Year-4 Year-5 Year-6 Year-7 Year-8 Year-9 Year-10 Year-11 Year-12

1000 1000 1000 1000 1000 1000 1000 1000 1000


240 240 240 240 240 240 240 240 240
85% 90% 90% 90% 90% 90% 90% 90% 90%
204000 216000 216000 216000 216000 216000 216000 216000 216000
9% 9% 9% 9% 9% 9% 9% 9% 9%
18360 19440 19440 19440 19440 19440 19440 19440 19440
29400 30870 32414 34034 35736 37523 39399 41369 43437
540 600 630 662 695 729 766 804 844

20 20 20 20 20 20 20 20 20
240 240 240 240 240 240 240 240 240
24 24 24 24 24 24 24 24 24
85% 90% 90% 90% 90% 90% 90% 90% 90%
40% 40% 40% 40% 40% 40% 40% 40% 40%
60% 60% 60% 60% 60% 60% 60% 60% 60%
59 62 62 62 62 62 62 62 62
5.25 5.51 5.79 6.08 6.38 6.70 7.04 7.39 7.76
308 343 360 378 397 417 438 460 483

848 943 990 1,040 1,092 1,146 1,204 1,264 1,327


Annual Expenses
All Numbers in INR Million
Dates - Annual Mar-14 Mar-15 Mar-16 Mar-17 Mar-18
Year Year-1 Year-2 Year-3 Year-4

Sugarcane Price 4.0% 2,000 2,080


Sugar Cane Requirement 192,000 204,000

Raw Material Expense 384 424


Salaries 7.5% 57 64
Consumables 5.0% 38 42
Other Expenses 2.0% 15 17
Repairs and Maintenance 1.0% 8 8
total operating cost 502 556
Debt Schedule

Debt Opening - 421 841 841


Addition 421 421 - -
Repayment 140
Closing 421 841 841 701

Interest Expense 84 84

Depreciation Schedule
SLM Depreciation
Fixed Assets, Gross 1,295 1,295
Accumulated Depreciation 68 137
Fixed Assets, Net 1,226 1,158

Depreciation Expense 68 68

WDV Depreciation
Fixed Assets, Beg 1,295 1,100
Depreciation IT 194 165
Fixed Assets, End 1,295 1,100 935

Working Capital Schedule

Inventory 42 47
Creditors 16 17
Working Capital 26 29
Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 Mar-26
Year-5 Year-6 Year-7 Year-8 Year-9 Year-10 Year-11 Year-12

2,163 2,250 2,340 2,433 2,531 2,632 2,737 2,847


216,000 216,000 216,000 216,000 216,000 216,000 216,000 216,000

467 486 505 526 547 568 591 615


71 74 78 82 86 90 95 100
47 50 52 55 57 60 63 66
19 20 21 22 23 24 25 27
9 10 10 11 11 12 13 13
613 639 667 695 724 755 787 821

701 561 421 280 140


- - - - -
140 140 140 140 140
561 421 280 140 -

70 56 42 28 14 -

1,295 1,295 1,295 1,295 1,295 1,295 1,295 1,295


205 273 342 410 478 547 615 684
1,090 1,021 953 884 816 748 679 611

68 68 68 68 68 68 68 68

935 795 676 574 488 415 353 300


140 119 101 86 73 62 53 45
795 676 574 488 415 353 300 255

51 53 55 58 60 62 65 67
19 20 21 22 22 23 24 25
32 33 35 36 37 39 40 42
Income Statement
All Numbers in INR Million
Dates - Annual Mar-14 Mar-15 Mar-16 Mar-17 Mar-18
Year Year-1 Year-2 Year-3 Year-4

Sales 760 848

Raw Material Costs 384 424


Gross Profit 376 424

Salaries 57 64
Consumables 38 42
Other Expenses 15 17
Repairs and Maintenance 8 8
EBITDA 258 292

Depreciation 68 68
EBIT 190 224

Interest Expense 84 84
Interest Income (0) 7
EBT 106 147

Income Tax Payable 21 29


Deferred Taxes 14 19
Effective Tax Rate % 33% 33%

PAT 71 98
Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 Mar-26
Year-5 Year-6 Year-7 Year-8 Year-9 Year-10 Year-11 Year-12

943 990 1040 1092 1146 1204 1264 1327

467 486 505 526 547 568 591 615


476 504 534 566 600 635 673 712

71 74 78 82 86 90 95 100
47 50 52 55 57 60 63 66
19 20 21 22 23 24 25 27
9 10 10 11 11 12 13 13
330 351 373 397 422 449 477 506

68 68 68 68 68 68 68 68
261 282 305 329 354 380 408 438

70 56 42 28 14 - - -
9 15 23 34 45 58 83 110
201 241 286 335 385 438 491 548

40 48 60 105 125 147 167 189


26 31 35 6 2 (2) (5) (8)
33% 33% 33% 33% 33% 33% 33% 33%

134 162 192 224 258 293 329 367


Balance Sheet
All Numbers in INR Million
Dates - Annual Mar-14 Mar-15 Mar-16 Mar-17 Mar-18
Year Year-1 Year-2 Year-3 Year-4

Equity Capital 227 453 453 453


Reserves and Surplus - - 71 169
Total Shareholders Equity 227 453 524 622

Debt 421 841 841 701


Deferred Tax Liability - - 14 33
Creditors - - 16 17

Total Liabilities & Sh Equity - 1,294 1,395 1,374

Fixed Assets, Gross 647 1,295 1,295 1,295


Accumulated Depreciation - - 68 137
Fixed Assets, Net 647 1,295 1,226 1,158
Investments

Cash 1 (1) 95 134


Inventory - - 42 47

Total Assets - 1,294 - 1,339

Checksum 0 0 (1,395) (35)


Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 Mar-26
Year-5 Year-6 Year-7 Year-8 Year-9 Year-10 Year-11 Year-12

453 453 453 453 453 453 453 453


304 465 657 881 1,139 1,432 1,761 2,128
757 918 1,110 1,334 1,592 1,885 2,214 2,581

561 421 280 140 0 - - -


59 90 125 131 132 130 125 118
19 20 21 22 22 23 24 25

1,396 1,449 1,536 1,627 1,747 2,039 2,364 2,724

1,295 1,295 1,295 1,295 1,295 1,295 1,295 1,295


205 273 342 410 478 547 615 684
1,090 1,021 953 884 816 748 679 611

216 335 486 642 826 1,182 1,571 1,995


51 53 55 58 60 62 65 67

1,357 1,409 1,495 1,584 1,702 1,992 2,315 2,674

(38) (40) (42) (43) (45) (47) (49) (51)


Tax Schedule
All Numbers in INR Million
Dates - Annual Mar-14 Mar-15 Mar-16 Mar-17 Mar-18
Year Year-1 Year-2 Year-3 Year-4

PBT 106 147


Add: SLM Depreciation 68 68
Less: WDV Depreciation 194 165
Taxable Income (20) 50

Carry Forward Loss - Beginning - (20)


Additions (20) -
Set-off - 20
Carry Forward Loss - Ending (20) -
Taxable Income - 30
Corporate Tax 33% - 10

Book Profit 106 147


MAT 20% 21 29

Tax Payable 21 29

MAT Paid Over Corporate Tax - -

MAT Credits Beginning - 21


MAT Credits Addition 21 19
MAT Set Off - -
MAT Credits Ending 21 41

Net Tax Payable 21 29

Book Profits 106 147


Income Tax Provision 33% 35 48

Change in Deferred Tax Liability 14 19


Deferred Tax Liability 14 33
Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 Mar-26
Year-5 Year-6 Year-7 Year-8 Year-9 Year-10 Year-11 Year-12

201 241 286 335 385 438 491 548


68 68 68 68 68 68 68 68
140 119 101 86 73 62 53 45
129 191 253 317 380 444 506 571

- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
129 191 253 317 380 444 506 571
42 63 84 105 125 147 167 189

201 241 286 335 385 438 491 548


40 48 57 67 77 88 98 110

42 63 84 105 125 147 167 189

(2) (15) (26) (38) (48) (59) (69) (79)

41 38 24 - - - - -
- - - - - - - -
2 15 24 - - - - -
38 24 - - - - - -

40 48 60 105 125 147 167 189

201 241 286 335 385 438 491 548


66 80 94 110 127 145 162 181

26 31 35 6 2 (2) (5) (8)


59 90 125 131 132 130 125 118
Cash Flow Statement
All Numbers in INR Million
Dates - Annual Mar-14 Mar-15 Mar-16 Mar-17 Mar-18
Year Year-1 Year-2 Year-3 Year-4

PBT - - 106 147

Depreciation - - 68 68
Change in Inventory - - (42) (4)
Change in Creditors - - (16) (2)
Taxes Paid - - (21) (29)
Cash Flow From Operations - - 95 180

Purchase of Assets (647) (648) 0 -


Purchase of Investments
Cash Flow from Investing (647) (648) 0 -

Change in Debt 421 421 0 (140)


Change in Equity 227 226 - -
Cash Flow From Financing 648 647 0 (140)

Net Change in Cash 1 (1) 96 39

Cash BOP - 1 (1) 95


Cash EOP 1 (1) 95 134
Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 Mar-26
Year-5 Year-6 Year-7 Year-8 Year-9 Year-10 Year-11 Year-12

201 241 286 335 385 438 491 548

68 68 68 68 68 68 68 68
(5) (2) (2) (2) (2) (2) (2) (3)
(2) (1) (1) (1) (1) (1) (1) (1)
(40) (48) (60) (105) (125) (147) (167) (189)
222 259 292 295 324 356 389 424

- - - - - - - -

- - - - - - - -

(140) (140) (140) (140) (140) (0) - -


- - - - - - - -
(140) (140) (140) (140) (140) (0) - -

82 118 152 155 184 356 389 424

134 216 335 486 642 826 1,182 1,571


216 335 486 642 826 1,182 1,571 1,995
Returns
All Numbers in INR Million
Dates - Annual Mar-14 Mar-15 Mar-16 Mar-17 Mar-18
Year Year-1 Year-2 Year-3 Year-4

Debt Service Coverage Ratio


Profit after tax - - 71 98
Depreciation - - 68 68
Interest Expense - - 84 84
Total Inflow - - 223 251

Interest Expense - - 84 84
Repayment of Term Loan - - - 140
Total Outflow - - 84 224

Annual DSCR - - 2.7 1.1


Average DSCR 1.6
Maximum DSCR 2.7
Minimum DSCR 1.1

Internal Rate of Return

IRR : PAT & Equity


Equity Addition (227) (226) - -
PAT - - 71 98
Depreciation - - 68 68
Change in WC - - (26) (3)
Less : Loan Repayment - - - (140)
Terminal Value
Woring Capital Reversal
Cash Flow (227) (226) 113 24

IRR 23.4%
Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 Mar-26
Year-5 Year-6 Year-7 Year-8 Year-9 Year-10 Year-11 Year-12

134 162 192 224 258 293 329 367


68 68 68 68 68 68 68 68
70 56 42 28 14 - - -
273 286 302 321 340 362 397 436

70 56 42 28 14 - - -
140 140 140 140 140 - - - - -
210 196 182 168 154 - - -

1.3 1.5 1.7 1.9 2.2 - - -

- - - - - - - -
134 162 192 224 258 293 329 367
68 68 68 68 68 68 68 68
(3) (1) (1) (1) (1) (1) (2) (2)
(140) (140) (140) (140) (140) - - -
153
42
60 89 119 151 184 360 396 629

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