You are on page 1of 17

Tata Steel Limited-FPO

Open Source Financial Model

Contact
Anil Bains
anil@edupristine.com
+91 9619673853

Anirudh Gandhi
anirudh@edupristine.com
+91 9870083227

Paramdeep Singh
paramdeep@edupristine.com
+91 9892980608

Pawan Prabhat
pawna@eneev.com
+91 9867625422

Special Thanks to:
Kushal Bhagat
kushal.bhagat@gmail.com
+91 9717483505 © Neev Knowledge Management - Pristine
www.edupristine.com
+91 22 3215 6191 info@edupristine.com
+91 8080 00 55 33
Pristine is India's largest authorized training provider for CFA®, FRM®, PRM and Financial Modeling. It has
conducted more than 300,000+ man-hours of finance trainings for individuals and corporates in all the major
Indian cities and outside India.

according to the global industry body.which is the fastest in BRIC countries. which has generated enormous interest in the investor community (both retail and institutional). Many potential investors want a financial model in MS Excel© which can help them in a thorough analysis of the company.). The complete structure of the model and formulas. Tata Steel is coming out with its FPO aggregating nearly 3.edupristine.000+ man-hours of finance trainings for individuals and corporates in all the major Indian cities and outside India.is attempting to take advantage of strong domestic demand from user industries by expanding its capacities here. the participants should be able to create models like these. It is available as an open-source model for any user.com info@edupristine.4% year-on-year during the first 11 months of the calendar year 2010. PE. To part finance the expansion plan. In India. the total steel output grew 7. linkages etc. Pristine conducts extensive trainings for financial modeling in MS Excel©. This pace of growth is expected to continue over the next few years.385 crore. have been kept open to allow for any modification on the part of the user. Kindly note that this model is meant for information purpose only.Tata Steel. Pristine has created an integrated valuation model based on publically available information. etc. Broking. the seventh-largest player in the global steel industry. PRM and Financial Modeling. Equity Research.Pristine www. Creating such models have always been a time-taking and daunting exercise. © Neev Knowledge Management . FRM®. For more information you can contact the authors or Pristine. . At the completion of the trainings.com Pristine is India's largest authorized training provider for CFA®. It has conducted more than 300. These trainings are targeted towards investors/ professionals who are looking for a career in finance (Investment Banking.

Reserves & Surplus 8. Profit & Loss Account 5. Valuation . DuPont Analysis 3. Asset Schedule 10.INDEX 1. Debt Schedule 9. Cash Flow 7. Assumption Sheet 4. Balance Sheet 6. Summary Sheet 2.

7 972890 1014890 1040640 1040640 1040640 TRUE Cash Flow From Operations FALSE Cash Flow From Investing -185401 -832957 -36173.00587 -52929.6 -19422.02131 -7908.1 71717.3 35041.8499 -69242. Year fy 07a fy 08a fy 09a fy 10a fy 11e fy 12e fy 13e fy 14e fy 15e Asset 166306.6081 TRUE 94380.49465 .8 -117566.3 408363.8 962293.7 32816.8 200837.1 74845.6 -19422.33553 71797.8 -20147.83 -30322.6 TRUE Net Income 41390.5 27631.508117 -37334.28142 117576.88203TRUE Cash Flow From Financing 217574.5 994586.6 -19422.9 -41122.5 -89072.16188 85683.

259 Total Asset Turnover divided by 0.365 1.620 .625 - Operating Net Profit Margin Expense divided by 477.451 Total Liabilities 950.863 Balance Sheet + Total Assets + 1.867 Current Liabilities Total Liab + SE = 384.004 Equity (SE) divided by multiplier 294.050.245.163 68.620 4.23 Common stock equity 294.441 Sales 1.050.304 - Exceptional Return on Total Assets Items (ROA) multiplied by 0 5.3% Net Fixed Assets (PPE) 730.84 Current Assets Return on Common Equity 515.5% Income Statement - Interest Expense Sales 31.259 - Tax Expense 30.487 23.245.5% Others 2. DuPont Analysis Sales 1.361 6.259 - Earnings Cost of Sales Available 440.036 Total Assets multiplied by (ROE) + 1.487 Long Term Debt Stockholder Financial Leverage 566.050.

of days Scroll Bar 132 82 112 167 160 160 160 160 160 35 34 35 35 35 Debtor No. Selling and Other Expenses as % of Sales CAGR 26% 29% 24% 32% 28% 28% 28% 29% 28% Restructuring Cost as % of Sales Scroll Bar 0% 0% 0% 3% 0% 0% 0% 0% 0% Contribution for Sports Infrastructure as % of Sales Scroll Bar 0% 0% 0% 0% 0% 0% 0% 0% 0% Exchange Gain as % of Sales Scroll Bar 0% 0% 0% 0% 0% 0% 0% 0% 0% Acturial Gain as % of Sales Scroll Bar 0% 0% 4% 0% 0% 0% 0% 0% 0% 3000% 3000% 3000% 3000% 3000% Current Tax as % of Profit Before Tax Scroll Bar 34% 33% 18% 126% 30% 30% 30% 30% 30% Changes in Accounting Policies as % of Sales Scroll Bar 0% -4% -1% 0% 0% 0% 0% 0% 0% Prior Period Adjustments As % of Sales Scroll Bar 0% 0% 0% 0% 0% 0% 0% 0% 0% Tax Impact of Adjustments as % of Sales Scroll Bar 0% 0% 0% 0% 0% 0% 0% 0% 0% Minority Interest as % of Sales CAGR 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Share of Profit of Associates as % of Sales CAGR 0% 0% 0% 0% 0% 0% 0% 0% 0% Balance Sheet 12 14 16 14 14 CWIP as % of Sales Scroll Bar 12% 7% 6% 9% 12% 14% 16% 14% 14% 16 16 16 16 16 Inventory No. all financials are in INR Million) fy 06a fy 07a fy 08a fy 09a fy 10a fy 11e fy 12e fy 13e fy 14e fy 15e P&L Assumptions fy 03a fy 06e fy 08e fy 08e fy 08e Sales and Other Operating Income Growth Rate Scroll Bar 23% 389% 12% -31% 3% 6% 8% 8% 8% fy 06a Excise Duty as % of Sales CAGR 8% 2% 2% 2% 3% 2% 2% 2% 3% fy 10a fy 10e fy 10e fy 10e fy 10e Other Income Growth Rate Scroll Bar 53% 122% -44% 346% 10% 10% 10% 10% 10% fy 41a fy 41e fy 41e fy 40e fy 40e Cost of Material as % of Sales Scroll Bar 33% 45% 49% 42% 41% 41% 41% 40% 40% fy 10a fy 15e fy 15e fy 15e fy 15e Provisions for Employees as % of Revenue CAGR 7% 13% 12% 16% 12% 13% 13% 14% 13% Manufacturing. of Days CAGR 19 28 38 43 32 35 37 37 35 38 Loans and Advances as % of Sales CAGR 7% 12% 9% 7% 9% 9% 8% 8% 8% 39 Minority Interest as % of Gross Block CAGR 3% 1% 1% 1% 1% 1% 1% 1% 1% 20 20 20 20 20 Creditor No of days Scroll Bar 160 93 119 181 200 200 200 200 200 38 0 0 0 0 Advances as % of Sales CAGR 1% 0% 0% 1% 1% 0% 0% 1% 1% 20 20 20 20 20 Investments Growth Rate Scroll Bar 374% -80% 90% -15% 20% 20% 20% 20% 20% .Assumptions CAGR Scroll Bar (Unless otherwise specified.

3 129.0664 Cost of Material 67107.11419 71058.2 21625.5 485.90638 84750.8 -1219.52076 116576.8 Special Reserve 61.3 General Reserve 15287 15247 15490.497 1249393.8 97541.7 10109.2 245.5 -155.6 1546.90638 84750.3 2145.15832 36848.2 576594.8 458.679 Less: Excise Duty 19500 22249.6002 179307.3 547506.8 1340867.3 5525.3 137700.35 14348.7 11678.03553 Depreciation 8603.5 101370.10273 36168.33553 71797.2788 331293.787 1327341.6 128316.5 -14483.6483 148891.2 1037214.52076 116576.2 -63.11419 71058.8 7092.9 -106.574 Net Profit Before Tax & Exceptional Items 55149.6 1018642.5478 573411.3 7092.4 -425.9 316.1 34009.6 164629.5974 256335.6 Balance Carried to Balance Sheet 33349.936 1216767.9 895.1 74845.8095 1025868.084 1179526.249 1137981.9 729376.5077 Finance Charges 550.3 7092.241 1415778.4 65982.1 40493 18940 21518.1 0 0 0 0 0 0 Total 17939.3 48390 92740.4717 Accreation/(Reduction) in Stocks -470 -5402.23 Other Income 1402.8 63130.3 7092.2 0 0 0 0 0 Provision of Tax Current Tax 16199.3 35041.7 118277.0970745 489.48356 25101.211 1396680.8 41369.4 6600.5735 Balance Available for Appropriation 56918 74739.4 30304.003382 1272.496838 1701.4 26556.1 71717.52735 Profit / (Loss) as Restated 37057.46662 Deferred Tax 1449.6 19422.22318 49808.6 31365.6 1023931.6 19422.19179 30301.6635 17362.37968 46669.8 5525.8 18367.8 71066.7 1499849.6788 311870.8 458.1 11494 75987.6 41269.9 -106.3 7092.7 0 0 0 0 0 Net Profit/(Loss) After Adjustments 36926.0495 185458.6 48492.5 485.2 196 3989.3 -21285.3 7092.4 6600.3 1543.6081 Balance Brought Forward from Previous Year 19860.8 458.6 20380 168995.9 74567.1 123217.1 36352.4 6600.5105 383438.3 41390.5 42653.6 252171.9 1094.3 1543.4 123235.7 1050259.16188 85683.2225 319436.2 948888.8 Proposed Dividends on Ordinary Shares 7186.9 -106.8291 521087.684 1295368.3 1543.6 2656.9 44917.5 13044.5735 410024.9 1876.6 1367571.7 11858.9 40854.1 32901. all financials are in INR Million) fy 06a fy 07a fy 08a fy 09a fy 10a fy 11e fy 12e fy 13e fy 14e fy 15e Income Sales and Other Operating Income 222681.9 316.55831 46159.4 30495 22229.5 458.9 188.151 1200983.1735 429447.28142 94380.02985 19098.2 671.348 1312730.9 -106.0355 615556.3 105552.3 -40945.8887 Exceptional Items Restructuring Cost 0 0 0 -40945.52479 46210.87929 39854.4 -21208.4 1042298.8 6722.2 6600.40823 38209.56662 Net Profit After Tax (Before Adjustments) 37210.0074 343539.472054 1583.7 118277.6 19422.8 40 0 0 0 0 0 Total -284.3 48390 92740.927 1095848.2 33537.2 2077.7 1315336.4 485.1 0 0 0 0 0 0 Prior Period Adjustments -428.23284 Total Income 204583.0091 120919.33553 71797.8 5525.9 71717.16188 85683.318414 1228.6 11678.8 -20147.3 127782.9 -106.2 42.4 6600.3 1035789.3221 Less: Minority Interest 191.1 -77.3 44670.3696 162278.77929 39961.93552 33033.284 1229019.6 607.9 Total Appropriation 23568.3264 503898.9 316.6 382720.8 5525.5756457 552.1 -3309.8 458.2 1268.1125 530936.8 1681.115 1127228.785 15783.3 -16837.38501 93349.Income Statement (Unless otherwise specified.4 9428.514 642113.5402 Manufacturing.3 1073567.44964 Net Income from Operations 203181.3 316.6788 311870.9 1475949.6 274420.4 91769.3 -582.49465 117576.9 363126.2643 133203.1 85405.9974 236912.3 477360.1 25531. Selling and Other Expenses 56375.7 19422.5816 .9 254317.4 0 0 0 0 0 0 0 Total 0 0 63351.6 1634.5 440915.37 1433528.4 1320094.43538 33869.0355 190074.3 1543.5 485.28142 94380.3 41390.2 6745.8 -117.1 602286.7 41656.1 71066.7 21455.00273 36275.462 Expenditure 81775.61854 Total 149434.3221 Adjustments Changes in Accounting Policies 0 0 -52884.49465 117576.4 1543.3 30411.9 316.1 2140.5 Debenture Redemption Reserve 0 0 0 0 4000 4000 4000 4000 4000 4000 Statutory Reserve 0 0 963 515.4 Payment to and Provisions for Employees 17266.7 17147.7439 166384.3 Tax on Dividends 1033.5 485.7 26349.3 440162.13301 28036.7 39.5 2176.9 791.95115 46346.5 485.1133 403707.1 -386.7 0 0 0 0 0 Tax Impact of Adjustments 144.4355 170651.9 0 0 0 0 0 0 0 Acturial Gain 0 0 59068.8 30220.9 316.09179 30408.6 19422.1816 Appropriation Proposed Dividends on Prefernce Shares 0 0 221.1 21474.2 -48650.2 -16491.7 33349.5721 466572.7 4758.10231 31973.8 -16560.2413751 Add: Share of Profit of Associates 321.4 6600.5 72453.44378 32861.9 174.1 209.4 65982.2 100359.8 5525.2 1219735.6 1403.5229496 701.12318 49915.1566 559088.3 -16837.6 331359 297773.7 179750.8 5525.765 1112880.3 -106.3 1473292.8 458.38501 93349.3 105552.5 19762.9 Fringe Benefit Tax 289.3 1543.2 0 0 0 0 0 Contribution for Sports Infrastructure 0 0 -1500 0 0 0 0 0 0 0 Exchange Gain 0 0 5782.5 63.7478822 339.6 605293.306 101360.3 108377.6 19422.3 19971.1 191187.4355 170651.9974 236912.6081 37057.

7 372016.178 1442315.6 174.4035 586367.4 28609.8 276639.0116 Add/(Less) Foreign Currency Monetary Item 0 0 0 -4716.4 1248591.9 49612.2 69.9412 900043.6 331187.3 290593.1 294620.4 18029.8 200837.3 115124.9 579028.6 174.562 324112.7 91420.6 68.8655 337557.5536 210020.3 364175.4666 396087.5 614754.4 233787.3 419662.1 336446 384863.6 42318.7 1210432.0372 277901.217 Net Worth represented by Share Capital 5530 5800 62026.9 539613.2 275410.1 149819.4 9437.4 199643 182097.1 31717 31830.7 9636.5 271489.3002 630995.2 250410.6693 921979.6 89.9 453058.7 88475.1 33263.5 623699.1 65974.4 9437.8 962293.5 256566.3 1488.2 92706.6 174.4 73201.3 279693.7905 977532.3 68459.4 18029.3 Unsecured Loans 8740.6 Provision for Employee Separation Compensation 14025.312 1612522.0116 530098.312 1612522.6 457958.6 174.5305 233725.6 0 0 0 0 0 0 0 0 Reserves & Surplus 97657.6 153649.2 186866.4 9437.4 155822.6 88883.5 0 0 0 0 0 Less: Miscellaneous Expenditure -2560.6 2069.2663 103605.3 520019.3 76.4 18029.1088 478776.7 -1556.5 279857.7168 Total Liabilities 102269.9 342438.364 720824.1 867449.1 65974.8029 262393.1 65974.4 216684.1659 185827.7917 200694.3 Loans and Advances 11371.2 515036.7763 Provisions 10946.1 76.9 130768.618 1390788.3 1488.4043 100344.8 280593.8 0 0 0 0 0 0 Net Worth 100627 144110. all financials are in INR Million) fy 06a fy 07a fy 08a fy 09a fy 10a fy 11e fy 12e fy 13e fy 14e fy 15e Assets Fixed Assets Gross Block 166306.9139 809085.6 64504.2 145418.5664 10668.2 938943.1 65974.9 65013.618 1390788.2 145418.1 138937.81856 100778.3798 196643.7015 56866.0861 231554.8 19633.4 9437.935 1268974.1 8368.48 78016.4112 112343.6 174.4 9437.6 6021.2 275410.8274 413255.0151 Total Fixed Assets 107881 142205.1 Total Current Liabilities & Provisions 68495.0495 365234.2 598580.2 275410.5 108879.4116 Total Libialities & Equity Capital 202896.8 339938.7 1210432.9417 370781.2 275410.2 285182.1405 Waarants Issued by Subsidiary Company 0 174.7 9636. Loans and Advances Inventories 27733.8428 Total Current Assets 59086.5168 113119.4 128828.3 1488.2 8974 8843.2 275410.7 54407.5 950866.5325 Less: Impairment 941.628 Liabilities Loans Fund Secured Loans 25033.4 365251.3 1097720.2655 346994.3 76.9521 Current Assets.1 599389.1 9636.935 1268974.4 Share Warrants 0 1470.7 24841.4 199029.5 440166.9628 762738.2934 134811.2 18168.3 230643.6 11183 10800.7 9636.5 100351.8 184340.6 1245486.2 16865.6 68151.4675 Capital Work in Progress 13574.1694 398998.8 493717.2 145418.3 1097720.9 391190.7 Current Liabilities 32308.4274 403818.56953 146211.5962 106533.7 263328 230717.9418 520755.3 71479.8199 Sundry Debtors 12187.0868 268991.1 65974.4 Minority Interest 1276.3 64111 54177.8778 432248.2 Investments 34789 164975 33674.75397 11493.2 230271.3 279693.3 76.7 9636.4826 Goodwill 1140 2196.10497 11072.4 18029.909 1026155.178 1442315.6 174.3 185583.6 20636.6155 293690.2905 422429.5088 488213.8 219334.8 8867.6803 163928.0699 159317.409 471051.3 62027.6 1245486.3 297 1074 1488.3 18029.2518 Cash and Bank Balances 7767.3 -1054.2432 515441.438 716527.4 18029.271 120280.1693 366876.3 354149.628 Check TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE .87229 193726.1572 231753.4 1248591.55953 12002.6 61483.3 Interest Accrued on Investments 11 11.3 279693.4 129535.2 145418.0035 576930.4 14408.2 145418.957 215073.5 994586.9936 Total Assets 202896.6 174.4 340327.3 1488.3 1488.2031 463728.0583 669858.5 215232.6 0 0 0 0 0 Net Block 94306.3856 317541.176 93619.7 972890 1014890 1040640 1040640 1040640 1040640 Less: Acculated Depreciation 71058 90892.4791 Deferred Tax Assets 16.9 1004.Balance Sheet (Unless otherwise specified.7 9636.5 10424.6 174.7 65974.3 76.2 145418.8 493717.1 38881.8 349607 908264.2 Current Liabilities & Provisions Deferred Tax Liabilities 9938 7928.6694 954101.3 76.9 108941.1 -2097.3 279693.6 180499.

8655 337557.8 207.3 2.5816 Total Reserves & surplus 97657.1088 478776.97 -3130.2 11.1 14.5735 410024.5 215232.8 Contingency Reserve 100 100 100 100 100 100 100 100 100 100 Debenture Forfeiture Reserve 0.3 2.1 164.3 2.97 -3130.9 Statutory Reserve 0 0 963 1478.6 59316.4 83919.2 1795.0035 576930.4 65982.3 2.8 728.5 193 216.2 4.1 216.5 12.4 83919.9 -59969.3 48390 92740.5 187117.2 109680.7 118277.8 728.97 -3130.8 207.8 90547.8 728.Reserves (Unless otherwise specified.5 12.2 1795.4 83919.43 166905.2 1795.3 4.1 341.3 2.4 0.5 12.3 2.8 207.5 166905.6788 311870.43 166905.4 0.9 826.7 202.4274 403818.8 207.4 0.4 0.8 728.5 Foreign Exchange Fluctuation Reserve 0 -52.6 83919.4 0.6 -12733.8 207.9 -59969.3 4.5 12.8 728.1 Capital Reserve (Arising on Consolidation) 110.3 615.2 285182.4 153351.4 83919.2 397.2 76971.9 826.1 14 14 14 14 14 14 14 Foreign Currency Translation Reserve 110.1 162.8 Capital Reserve 159.9 Contributions for Capital Expenditure 370.43 166905.4 826.8 219334.4 83919.8 -59969.97 Cash Flow Hedge Reserve 0 0 0 0 615.5 12.93 0 0 0 0 0 Total Reserves & surplus (Before P&L) 64307.3 4.5 279857.6 63921.8 207.3 202.8 207.5 465.3 159.3 Export Profit Reserve 12.5 12.9 826.3 202.43 Profit & Loss Account 33349.3 -48711.4 4102.2 1795.97 -3130.3 2.5 12.3 202.3 615.5 12.8 207.7 140315 140315 140315 140315 140315 140315 Amalgamation Reserve 11.3 105552.3 Impact of Restaments 6714 6714 -3542 11025 -13553.6 164.4355 170651.3 4.4 Special Reserve 196.3 615.4 0.4 Investment Allowance (Utilised) Reserve 2.43 166905.9974 236912.4 235.1 138937.0116 .3 1795.1 216.4 0.6 426.2 11.9 -59969.5 78393.3 2.1 216.3 4.3 202.2 Acturial Gain/(Loss) 0 0 59068.2 11.8 207.3 Debenture Redemption Reserve 646 646 646 646 1046 1046 1046 1046 1046 1046 Capital Redemption Reserve 207. all financials are in INR Million) fy 06a fy 07a fy 08a fy 09a fy 10a fy 11e fy 12e fy 13e fy 14e fy 15e Reserves & Surplus Securities Premium Account 8292 22593.3 202.1 216.9 -59969.3 615.97 -3130.2 1795.6 -3130.4 0.9 826.4 0.9 -59969.3 615.9 826.9 299.2 571.6 159.1 216.5 12.7 728.4 61127.3 2.3 General Reserve 47374.

1 133860.9 213429.3 1473292.6 1023931.6 252171.3 82971. all financials are in $ Million) fy 06a fy 07a fy 08a fy 09a fy 10a fy 11e fy 12e fy 13e fy 14e fy 15e Revenue Extracted External Sales Steel 171088.1 3898.3 131755.7 6719.2 Elimainations 0 0 0 0 0 Total External Sales 203181.7 38742.7 1315336.5 Unallocable 0 0 4143.6 1177332.2 .2 937061.3 1334818.Revenue (Unless otherwise specified.5 Others 32092.

4 541.6 61483.9 -407.1 -2069.6 -3823.6 -19422.5 -53160.16188 85683.8 0 0 0 0 0 Less.4 501.55831 46159.585755 433.1 -66561 19165 6667.2299 -23851.6 -78 21.4 -30495 -22229.88203 Cashflow from Financing Activities Less: Increse in Reserves 26239.50964 181014.0847 21346.33553 71797.5 108879.6 -19422.6 6786.5 0 0 0 0 Add: Increase in Share Capital 270 56226. all financials are in INR Million) fy 06a fy 07a fy 08a fy 09a fy 10a fy 11e fy 12e fy 13e fy 14e fy 15e Cashflow from Operations PAT 41390.5 81668.6 42318.7 9933.4 42852.5 27631.957 215073.7 -6156 25000 0 0 0 0 Add: Increase in Share Warrants 1470.6 -17545.674829 -13747.461435 404.6 62308.6 -19422.8499 -69242.556321 -35266.8 -20147.6 -178303 26850.30987 -37325.02131 -7908.5 -376.5809698 Add: Increase in Waarants Issued by Subsidiary Company 174.4 44670.6 0 0 0 0 Less: Increase in CWIP -19689.7 -77436.0847 21346.8 -28609.6 61483.28142 94380.3 -19552.957 215073.5 -89072.9 0 0 0 0 0 Add: Increase in Provisions 9690 43867.4666 396087.78611 10815.88224 -22468.696 -15603.83648 50809.1 -66561 19165 6667.7015 56866.87229 193726.5 81668.2 29817.5718 Less: Increase in Interest Accrued on Investments -0.87229 193726.73306 Less: Increase in Sundry Debtors -4678.0125 Closing Cash Balance 108879.95115 46346.00587 -52929.9 113.8 -12163.1 149819.1 -10835.6 -22961.6 68151.6 -382.66988 -30489.7 6975.9 -138.3 35041.8081281 -6188.4 304537.6 -19422.7 -32293.6 0 0 0 0 0 Net Cashflow from Operations 68938.3 408363.4 -3220.1 605.6 -19422.11856 -9357.6 0 0 0 0 0 0 0 Less: Miscelleaneous Expensiture 462.6036 -21733.166402 -3740.6 -19422.8055643 508.4791 Cash Balance in Balance Sheet 7767.50964 181014.4791 Check TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE .2 171603.2352 -18723.4 -5505.72681 Add: Increase in Minority Interest 4744.61775 237771.60153 -92952.8 -130.2 21696.1 -808.7 -30436.15361 -10990.7 -19422.1 -61845.0125 Cash Balance Opening Cash Balance 7767.4 0 0 0 0 0 Add: Increase in Deferred Tax Liabilities -2009.6214 6611.26494 Less: Increase in Deferred Tax Asstes -53.7 32816.6 -136189.776626 209211.1 14410.6 Net Change in Cash 101112.3 -32610.9 41922.4 -787.41732 55148.6 68151.2 -36121.1 -227.9 -41122.5 -6672.82925 136860.52479 46210.6 42318.61854 Less: Increase in Inventories -11148.3 0 0 0 0 0 Less: Increase in Loans and Advances -8261.4666 396087.957 215073.8 43671.6 -19422.5 74468.8 358032.6081 Less: Depreciation 19834.5 108879.2 0 0 0 0 0 Add: Increase in Current Liabilities 22099 208920.706 48677.6 42318.93 0 0 0 0 Less: Appropriations -26349.58 -13002.6 -1470.49465 117576.Cash Flow Statement (Unless otherwise specified.8 -117566.4 570 0 0 0 0 Net Cashflow from Financing Activities 217574.5 -8.82925 136860.87229 193726.5 1054. Foreign Currency Monetary Item 0 0 -4716.2 62923.37412 -14866.1 13553.4945 Cashflow from Investment Activities Less: Increase in Gross Block(Fixed Asstes) -34531 -761455.1 508497.83 -30322.1 -168718.1 149819.3 1.58605 -60322.1 149819.37326 -1971.65869 Net Cashflow from Investment Activities -185401 -832957 -36173.1 56048.60153 -92952.6490024 420.4 8231 0 0 0 0 0 Less: Increase in Investments -130186 131300.7 96569.83047 -73009.7015 56866.1 13959.2 -191762.7 -777 -414.6 61483.22334 Less: Increase in Goodwill -1056.1 96461.6 -19422.37968 46669.5 2347.6 0 0 0 0 0 0 0 0 Add: Increase in Provision for Employee Separation Compensation -2842.6 3070.56599 71544.7015 56866.6 68151.7 -42000 -25750 0 0 0 Less: Imapairement 62.1 71717.5 25054.69682 42605.6 -11711.00288 -14246.1 74845.6 -55211.5 10000 -10900 0 0 0 Add: Increase in Unsecured Loans 190902.4666 Net Cashflow 101112.6 5565.2 30712.3 16912.508117 -37334.6 Add: Increase in Secured Loans 24578.

6 0 74468.9 55 30.2 275410.3 354149.03553 Historical Debt Sources Secured Loans Extracted Banks and Financial Institutions 634.3 279693.2 Add: New Issued 190902.2 0.2 275410.2 250410.6 145462.1 Fixed Deposits (including interest accrued and due) 369.8 1221.6 1146.93552 33033.3 354149.9 342438.9 49612.7 5.7 198812.1 Others 140.63% 11.3 290593.5 3687.9 342438.90% 12.2 0.7 327261.2 TRUE TRUE TRUE TRUE TRUE .4 241.1 496.4 199643 182097.75 280276.4 144.2 Secured Loans Opening Balance 25033.2 275410.1 2737.4 199643 182097.1 282502.2 868.20% Interest Expense 1876.6 162420.4 17006.2 275410.3 279693.125 274251.1 61845.3 12 Convertible Alternate Account Securities 0 0 43299.3 4496.4 Assets under lease 0 0 7931.2 275410.2 4161.4 Privately Placed Non Convertible Debentures 4625 1750 834.7 130087.3 TRUE TRUE TRUE TRUE TRUE Unsecured Loans Extracted Banks and Financial Institutions 8101.43538 33869.1 32901.2 Assets Under Lease 6.3 68.2 0.6 44. all financials are in INR Million) fy 06a fy 07a fy 08a fy 09a fy 10a fy 11e fy 12e fy 13e fy 14e fy 15e Unsecured Loans Opening Balance 8740.3 290593.5 0 6156 0 0 0 0 0 Closing Balance 8740.9 49612.3 354149.2 Joint Plant Committee Steel Development Fund 16092.3 256729.7 27356.5 256566.9 40854.3 1199.8 280593.6 0 0 10000 0 0 0 0 Less: Repayments 0 0 11711.2 275410.5 16502.8 30220.8 280593.84% 11.7 0 25000 0 0 0 0 Less: Repayments 17545.2 3682.6 31365.5 256566.3 Average Loan Outstanding 70757.3 Government of India 0.8 575.44% 13.2 250410.4 199643 182097.2 2351.44378 32861.9 342438.5 38.6 4.3 279693.4 304537.2 4.2 250410.2 275410.8 280593.6 500 900 Cash Credit / Packing Credits from Banks 722.5 86.3 279693.5 256566.2 275410.2 275410.6 464.2 21168.3 17524 18055.2 0.675 283813.4 196375.2 64 Privately placed non–convertible debentures 0 0 0 32500 54009 Housing Development Finance Corporation Ltd 123.4 3312.75 277551.3 450 Working Capital Demand Loans / Term Loans from Banks 2952.9 49612.75 Interest Rate % 3% 21% 12% 11% 11.Debt Schedule (Unless otherwise specified.2 6339.2 Interest free loans under Sales Tax Deferral Scheme 5.3 279693.5 0 10900 0 0 0 Closing Balance 25033.2 Total Secured Loans 25033.3 Foreign Currency Convertible Bonds 0 0 0 0 24572.75 277551.3 279693.2 54739.40823 38209.1 588.1 Total Unsecured Loans 8740.2 317512.3 279693.75 277551.3 Add: New Issued 24578.

2 16865.2 182814. all financials are in $ Million) fy 06a fy 07a fy 08a fy 09a fy 10a fy 11e fy 12e fy 13e fy 14e fy 15e Sundry Debtors Extracted Due for a period exceeding six months 1572.9 2927.9 Less: Provision for doubtful debts 740.3 115124.7 8042.5 Total Sundry Debtors 12187.8 7819 Others 11355.2 4753.9 1880.4 129535.3 7522.8 5161.9 4869.Sundry Debtors (Unless otherwise specified.3 185583.2 15818.3 112466.4 .6 126362.

2 521.8029 262393.7 2910.0495 365234.1 6783.1 220101.8965 303173.8 276639.2 521.790975 7280.7 474.1 5452.1 3185. all financials are in INR Million) fy 06a fy 07a fy 08a fy 09a fy 10a fy 11e fy 12e fy 13e fy 14e fy 15e Current Liabilites Sundry Creditors 29661.5 217933.4 233787.2 521.7 263328 230717.2 521.Current Liabilities (Unless otherwise specified.2 521.7 262268.7 5502 7712 7712 7712 7712 7712 7712 Advances Received from customers 2055.8 50765.2 Total Current Liabilities 32308.7 54407.9 498.501458 Unpaid Dividens etc. 302.202363 6781.9 6138.0748 Interest Accrued but not Due 288.242 249043.3856 317541.6155 293690.2 3368.2 521.7 256299.7 499.289039 6135.360859 5116.0585 349721.7763 .2131 278675.3 233.

8 200837.7 32293.562 324112.2 0 42000 25750 0 0 0 Removal of Asset 0 0 0 21696.5 994586.9 391190.7 10109.52479 46210.55831 46159.8 962293.7 0 0 0 0 0 Closing Gross Block 166306.0583 669858.8 200837.95115 46346.1 31717 31830.7 972890 1014890 1040640 1040640 1040640 1040640 Depreciation Expense 8603.4 365251.8 962293.5 42653.9 108941.Assets Schedule (Unless otherwise specified.6 331187.9 44917.0861 231554.5 994586.6 0 0 0 0 0 Net Block 94306.9417 370781.438 716527.9 1004.7 972890 1014890 1040640 1040640 1040640 Addition of Asset 34531 761455.61854 Accumulated Depreciation 71058 90892.9628 762738.37968 46669. all financials are in INR Million) fy 06a fy 07a fy 08a fy 09a fy 10a fy 11e fy 12e fy 13e fy 14e fy 15e Opening Gross Block 166306.2 598580.4675 .9 579028.5 623699.9139 809085.3 364175.1 599389.3 44670.8 41369.5325 Imapirment 941.4 28609.0372 277901.

3 0 0 0 0 0 Interest Accrued on Investments 0.6036 21733.5809698 Waarants Issued by Subsidiary Company -174.55831 46159.596 -20701.4 787.188 -19945.5 -2347.4 0 0 0 0 0 Current Liabilities -22099 -208920.9199 59492.9 138.15361 10990.7 -6975.3373 Terminal Value of FCFE 263358.6 225310.1 -605.95115 46346.5 376.7649 -76858.6 -3070.7 777 414.6490024 -420.5 35000 -10900 0 0 0 Free Cash Flow to Equity 220474.11856 9357.54 Cost of Equity 20% Tax Rate 34% Terminal Growth Rate 2% No of shares Outstanding Millions 943.9 -41922.56599 -71544.804 72780.8081281 6188.37968 46669.8 130.1 -13959.6 136189.4 -42852.78611 -10815.83047 73009.26494 Deferred Tax Assets 53.097993 .6 55211.7 42000 25750 0 0 0 Less: Increase in Work in Progress 19689.6 22961.706 -21715.58605 60322.37412 14866.3 32610.28142 94380.2 0 0 0 0 0 Loans and Advances 8261.73306 Sundry Debtors 4678.2711 Present Value of FCFE 337896. 637.2299 23851.188 19945.49465 117576.61854 Add: Interest*(1-Tax Rate) 1238.5 -25054.06735 -22353.2 77264.41732 -55148.1 71717.16943 25218.38% Market Risk Premium 9% Beta 1.5 6672.7 -102622.89982 91913.56345 Less: Fixed Capital Investment 34531 761455.461435 -404.76614 150197.8 -20147.22334 Working Capital Investment Inventories 11148.6 382.6 -5565.87744 -21802.1 227.16188 85683.8599 Value Per share Rs.16943 -25218.585755 -433.9 128481.9 -638771 169980.7 32293.6 78 -21.37326 1971.99188 222905.8 12163.3 -16912.166402 3740.5 42653.66988 30489.83648 -50809.1 74845.1 -56048.69682 -42605.4 5505.6 0 0 0 0 0 0 0 0 Provision for Employee Separation Compensation 2842.74 Tax Rate 34% (Unless otherwise specified.6 3823.1 -14410.754 26963.6 -68001.52479 46210.5718 Deferred Tax Liabilities 2009.00288 14246.23289 21688.9515 -60527.Valuation Risk Free Rate 6.7077 Less: Interest*(1-Tax Rate) -1238.9 407.87744 21802.7 -55215.23289 -21688.596 20701.0425 37690.1 168718.53325 171885.674829 13747.26786 Free Cash Flow to firm 3755.3 44670.5226 Total Free Cash Flow to Equity 601254.3 -62227.3 35041.8055643 -508.30987 37325.1 62757.92453 200551.06735 22353.6 0 0 0 0 0 Less:Total Working Capital Investment -7714.706 21715.2 191762.412 125320.8 41369.56345 Add: Net Borrowing 215481 286992.754 -26963.5 8.72758 111344.9 0 0 0 0 0 Minority Interest -4744.556321 35266.6 -62308.2 -29817.146 -952726.72681 Provisions -9690 -43867.2 36121.82805 -73848.6081 Add: Depreciation 10109.33553 71797. all financials are in INR Million) 6 7 8 9 10 11 12 13 14 15 Net Income 41390.9 44917.7821 -74845.2 -21696.806 85507.

The analysts who compiled this open source financial model hereby state that the contents in the document reflect his/her/their views and opinions on the subject matter. FRM®. Pristine. and its employees/ analysts do conduct trainings and from time to time to seek establish business or financial relationships with companies covered in the open research models. . © Neev Knowledge Management . PRM and Financial Modeling. Due efforts have been taken by Pristine and its employees in preparation of this model to ensure that the information is accurate to the best of their knowledge and belief.This open source financial model is for information purposes only. It has conducted more than 300.edupristine.Pristine www. Pristine. As a result.com Pristine is India's largest authorized training provider for CFA®.000+ man-hours of finance trainings for individuals and corporates in all the major Indian cities and outside India. investors should be aware that Pristine and/or such individuals may have conflicts of interests that could affect the objectivity of this report.com info@edupristine. The primary source of information contained in the report has been the DRHP filing of the company with SEBI. makes no representations or warranties regarding the accuracy or completeness of such information and expressly disclaims any and all liabilities based on such information or on omissions there from.