Basic data - Cash Flow Estimation

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.

Fixed Assets
INR 60
Gross Working Capital
INR 40
Equity
INR 40
Debt
INR 30
Bank Borrowings
INR 20
Trade Credits
INR 10
Cost of Long Term Debt
13.5%
Cost of Bank Borrowings
20%
Tax Rate
50%
Depreciation Rate
33.33%
Salvage Value of Fixed Assets
INR 20
Realisation of Working Capital
INR 40
Increase in Revenues
INR 80
Increase in Costs
INR 40
(Other than Dep, Int on LT Debts & Tax)

Mn
Mn
Mn
Mn
Mn
MN

on WDV
Mn
Mn
Mn
Mn

Cash Flow Estimation

Particulars
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
A.
B.
C.
D.

Plant & Machinery

-60.00
Net Working Capital
-10.00
Increase in Revenue
Increase in Costs
EBDIT(3-4)
Depreciation
EBIT (5-6)
Interest on LT Debts
Profit Before Tax (7-8)
Taxes
Profit After Tax (9-10)
Salvage Value
Recovery of NWC
Interest on LT Debts * (1-tax rate)
Initial Cash Flow (1+2)
-70.00
Operational Cash Flow (11+6+14)
Terminal Cash Flow (12+13)
Net Cash Flow (A+B+C)
-70.00

(Rs Mn)
5

80.00
40.00
40.00
20.00
20.00
4.05
15.95
7.98
7.98

80.00
40.00
40.00
13.33
26.67
4.05
22.62
11.31
11.31

80.00
40.00
40.00
8.89
31.11
4.05
27.06
13.53
13.53

80.00
40.00
40.00
5.93
34.07
4.05
30.02
15.01
15.01

2.03

2.03

2.03

2.03

30.00

26.67

24.44

22.96

30.00

26.67

24.44

22.96

80.00
40.00
40.00
3.95
36.05
4.05
32.00
16.00
16.00
20.00
10.00
2.03
21.98
30.00
51.98

Working Notes:
Depreciation
Particulars
1.
2.
3.

Opening Balance
Depreciation
Closing Balance
Rate of Depreciatoin

1
60.00
20.00
40.00

2
40.00
13.33
26.67

3
26.67
8.89
17.78

(Rs Mn)
5

17.78
5.93
11.85

11.85
3.95
7.90

33.33%

Debentures
Particulars
1.
2.
3.

Opening Balance
Redemption
Closing Balance
Average Balance
Interest

13.50%

1
30.00
0.00
30.00
30.00
4.05

2
30.00
0.00
30.00
30.00
4.05

3
30.00
0.00
30.00
30.00
4.05

(Rs Mn)
5

30.00
0.00
30.00
30.00
4.05

30.00
0.00
30.00
30.00
4.05