Assumptions for Financial Projections

Assumptions Supporting Financial Projections Unit Input value

Installed Capacity MW 5
Average Working days / Annum Days 365
Plant Load Factor % 21.28%
Tariff Rs / kWh 12
O&M Expenses (on Project Cost) 0.53%
Escalation in O&M 5.72%
Interest on Term Loan 11.50%
Loan repayment Period / years years 13
Moratorium From COD/Years years 1
Interest on Working capital 13.00%
Income Tax ( Regular) 32.45%
Minimum Alternate Tax (MAT) 18.50%
Incentives
MNRE Subsidy ( Rs. Million) 0
Tax holiday / years 10
Clean Development Mechanism (CDM) Revenue
Carbon Emission Remittance (CRE) price Euro / ton 12
Exchange rate Rs / Euro 67
Outputs
Generation GWh 9.32
ial Projections

Data Source
Proposed
Industry norms
As per the commitment from Vendor
Already PPA Signed with NTPC NVVN
CERC Tariff regulations 2009 (reference)
CERC Tariff regulations 2009 (reference)
Assumed
Assumed
Assumed
Assumed
As per latest Budget 2011
As per latest Budget 2011

MNRE Guidelines
As per Sec. 80IA of Income Tax Act,1961
m (CDM) Revenue
Assumed
Assumed
 Means of Finance Rs. Mn
Share Capital - 30% 195
Term Loan - 70% 455
TOTAL 650
Interest On Term Loan

Particulars / Years 1 2 3 4 5 6 7
Opening Term Loan 455 446.25 411.25 376.25 341.25 306.25 271.25

Repayment
Quarter I 0 8.75 8.75 8.75 8.75 8.75 8.75
Quarter II 0 8.75 8.75 8.75 8.75 8.75 8.75
Quarter III 0 8.75 8.75 8.75 8.75 8.75 8.75
Quarter IV 8.75 8.75 8.75 8.75 8.75 8.75 8.75
Loan Repayment 8.75 35 35 35 35 35 35

Outstanding Term Loan 455 446.25 411.25 376.25 341.25 306.25 271.25
Quarter I 455 437.5 402.5 367.5 332.5 297.5 262.5
Quarter II 455 428.75 393.75 358.75 323.75 288.75 253.75
Quarter III 455 420 385 350 315 280 245
Quarter IV 446.25 411.25 376.25 341.25 306.25 271.25 236.25

Interest
Quarter I 13.08 12.83 11.82 10.82 9.81 8.8 7.8
Quarter II 13.08 12.58 11.57 10.57 9.56 8.55 7.55
Quarter III 13.08 12.33 11.32 10.31 9.31 8.3 7.3
Quarter IV 13.08 12.08 11.07 10.06 9.06 8.05 7.04
Total Interest on Term Loan 52.33 49.81 45.78 41.76 37.73 33.71 29.68
Term Loan

8 9 10 11 12 13 14
236.25 201.25 166.25 131.25 96.25 61.25 26.25

8.75 8.75 8.75 8.75 8.75 8.75 8.75

8.75 8.75 8.75 8.75 8.75 8.75 8.75
8.75 8.75 8.75 8.75 8.75 8.75 8.75
8.75 8.75 8.75 8.75 8.75 8.75 0
35 35 35 35 35 35 26.25

236.25 201.25 166.25 131.25 96.25 61.25 26.25

227.5 192.5 157.5 122.5 87.5 52.5 17.5
218.75 183.75 148.75 113.75 78.75 43.75 8.75
210 175 140 105 70 35 0
201.25 166.25 131.25 96.25 61.25 26.25 0

6.79 5.79 4.78 3.77 2.77 1.76 0.75

6.54 5.53 4.53 3.52 2.52 1.51 0.5
6.29 5.28 4.28 3.27 2.26 1.26 0.25
6.04 5.03 4.03 3.02 2.01 1.01 0
25.66 21.63 17.61 13.58 9.56 5.53 1.51
 Estimation of Depreciation

Apportionment of Pre-operatives
Particulars Actual Cost Pre-Operative Exp Contingencies
Land 102.04 4.94 0
Civil Works 40.36 1.95 0
PV Modules 320 15.48 0
Transmission Line. 12 KM Length 157.6 7.63 0
Total 620 30 0

Calculation of Book Depreciation (SLM) (Rs.million)

Particulars Cost Depreciation Residual Value
Land 106.98 0 106.98
Civil Works 42.31 40.2 2.12
PV Modules 335.48 318.71 16.77
Transmission Line. 12 KM Length 165.23 156.96 8.26
Total 650 515.87 134.13

Deprectiaton per annum on SLM Basis (25 years) 20.6348

(Rs.million)
Total Cost
106.98
42.31
335.48
165.23
650
 Income Tax

Income Tax 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

as per MAT (18.5%) on profit 1.94 7.92 8.12 8.61 9.09 9.58
As per IT (30%+5%+3%) =32.45% on profit - - - - - -
Tax provision 1.94 - - - - -

Income Tax 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31

as per MAT (18.5%) on profit 13.91 13.92 13.65 13.37 13.09 12.81
As per IT (30%+5%+3%) =32.45% on profit 24.4 24.42 23.94 23.45 22.96 22.46
Tax provision 24.4 24.42 23.94 23.45 22.96 22.46
 (Rs.million)

2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25

10.07 10.55 11.03 11.52 12 12.48 12.96 13.44
- - - - 21.05 21.89 22.73 23.57
- - - - 21.05 21.89 22.73 23.57

2031-32 2032-33 2033-34 2034-35 2035-36 2036-37

12.52 12.23 11.93 11.63 11.33 11.02
21.96 21.45 20.93 20.41 19.87 19.33
21.96 21.45 20.93 20.41 19.87 19.33
 Summary of the Projections for

Factor
Project Cost
Equity - 30%
Debt - 70%
Project IRR
Equity IRR
DSCR - Min
DSCR - Avg
Projected Profitability Statement
Particulars 2011-12 2012-13 2013-14 2014-15 2015-16
(3 months)
Net Export to Grid(Units in Mn) 2.33 9.32 9.23 9.14 9.05
Tariff (Rs /KWh) 12 12 12 12 12
CDM Revenue 1.87 7.49 7.42 7.35 7.27
Power Revenue 27.97 111.86 110.75 109.64 108.54
Total Revenue 29.84 119.36 118.17 116.98 115.81
Expenses
Direct Cost - O&M Expenses 0.87 3.46 3.66 3.87 4.09
Employee Cost 0.03 0.11 0.12 0.12 0.13
Administrative Expenses 0.01 0.04 0.04 0.04 0.04
Interest and Financial Charges 13.3 52.33 49.81 45.78 41.76
Depreciation 5.16 20.63 20.63 20.63 20.63
Total Expenses 19.36 76.57 74.26 70.45 66.65
Profit Before Tax (PBT) 10.47 42.79 43.91 46.53 49.16
Income Tax 1.94 - - - -
Profit After Tax (PAT) 8.54 42.79 43.91 46.53 49.16
EBDITA over Total Revenue 96.98% 96.98% 96.77% 96.56% 96.32%
PBT over Total Revenue 35.10% 35.85% 37.16% 39.78% 42.45%
PAT over Total Revenue 28.61% 35.85% 37.16% 39.78% 42.45%
ry of the Projections for 5 MW

Unit Value
Rs. Mn 650
Rs. Mn 195
Rs. Mn 455
% 13.63%
% 18.89%
times 1.35
times 1.65
Rs Mn
2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25

8.95 8.87 8.78 8.69 8.6 8.52 8.43 8.35 8.26

12 12 12 12 12 12 12 12 12
7.2 7.13 7.06 6.99 6.92 6.85 6.78 6.71 6.64
107.46 106.38 105.32 104.26 103.22 102.19 101.17 100.16 99.15
114.66 113.51 112.37 111.25 110.14 109.04 107.95 106.87 105.8

4.33 4.58 4.84 5.11 5.41 5.72 6.04 6.39 6.75

0.13 0.14 0.15 0.15 0.16 0.17 0.18 0.19 0.2
0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04
37.73 33.71 29.68 25.66 21.63 17.61 13.58 9.56 5.53
20.63 20.63 20.63 20.63 20.63 20.63 20.63 20.63 20.63
62.87 59.1 55.34 51.6 47.88 44.17 40.48 36.81 33.16
51.79 54.41 57.03 59.65 62.26 64.86 67.46 70.05 72.63
- - - - - 21.05 21.89 22.73 23.57
51.79 54.41 57.03 59.65 62.26 43.82 45.57 47.32 49.06
96.08% 95.81% 95.53% 95.23% 94.91% 94.56% 94.20% 93.81% 93.39%
45.17% 47.94% 50.75% 53.62% 56.53% 59.49% 62.50% 65.55% 68.65%
45.17% 47.94% 50.75% 53.62% 56.53% 40.18% 42.22% 44.28% 46.38%
2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34

8.18 8.1 8.02 7.94 7.86 7.78 7.7 7.62 7.55

12 12 12 12 12 12 12 12 12
6.58 6.51 6.45 6.38 6.32 6.25 6.19 6.13 6.07
98.16 97.18 96.21 95.25 94.29 93.35 92.42 91.49 90.58
104.74 103.69 102.66 101.63 100.61 99.61 98.61 97.62 96.65

7.14 7.55 7.98 8.44 8.92 9.43 9.97 10.54 11.14

0.21 0.22 0.23 0.24 0.25 0.26 0.28 0.29 0.31
0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.06
1.51 - - - - - - - -
20.63 20.63 20.63 20.63 20.63 20.63 20.63 20.63 20.63
29.54 28.45 28.89 29.36 29.86 30.38 30.93 31.52 32.14
75.2 75.25 73.77 72.27 70.76 69.23 67.68 66.11 64.51
24.4 24.42 23.94 23.45 22.96 22.46 21.96 21.45 20.93
50.8 50.83 49.83 48.82 47.8 46.76 45.72 44.65 43.58
92.94% 92.47% 91.96% 91.42% 90.84% 90.22% 89.56% 88.85% 88.10% 87.29%
71.80% 72.57% 71.86% 71.11% 70.33% 69.50% 68.63% 67.71% 66.75% 65.73%
48.50% 49.02% 48.54% 48.04% 47.51% 46.95% 46.36% 45.74% 45.09%
 2034-35 2035-36 2036-37

7.47 7.4 7.32

12 12 12
6.01 5.95 5.89
89.67 88.78 87.89
95.68 94.72 93.78

11.78 12.45 13.16

0.32 0.34 0.35
0.06 0.06 0.06
- - -
20.63 20.63 20.63
32.79 33.48 34.21
62.89 61.24 59.56
20.41 19.87 19.33
42.48 41.37 40.24
8.85% 88.10% 87.29% 86.44% 85.52%
7.71% 66.75% 65.73% 64.65% 63.52%
44.40% 43.67% 42.90%
 Projected Balance She

Particulars 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

Share Capital 195 195 195 195 195 195 195 195
Reserves & Surplus 8.54 51.33 95.23 141.77 190.93 242.72 297.13 354.16
Term Loan 455 446.25 411.25 376.25 341.25 306.25 271.25 236.25
Other Liabilities
Total 658.54 692.58 701.48 713.02 727.18 743.97 763.38 785.41
Fixed Assets 650 650 650 650 650 650 650 650
Less : Depreciation 5.16 25.79 46.43 67.06 87.7 108.33 128.97 149.6
Net Block 644.84 624.21 603.57 582.94 562.3 541.67 521.03 500.4
Debtors 20.52 20.52 20.33 20 19.67 19.34 19.02 18.7
Other Assets - 7.92 16.04 24.65 33.74 43.32 53.39 63.94
Bank Account -6.82 39.94 61.54 85.44 111.47 139.64 169.94 202.38
Total 658.54 692.58 701.48 713.02 727.18 743.97 763.38 785.41
Projected Balance Sheet

2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29
195 195 195 195 195 195 195 195 195 195
413.81 476.07 519.88 565.45 612.77 661.84 712.64 763.47 813.29 862.11
201.25 166.25 131.25 96.25 61.25 26.25 - - - -
24.4 24.42 23.94 23.45
810.06 837.32 846.13 856.7 869.02 883.09 932.04 982.88 1,032.23 1,080.56
650 650 650 650 650 650 650 650 650 650
170.24 190.87 211.51 232.14 252.78 273.41 294.05 314.68 335.32 355.95
479.76 459.13 438.49 417.86 397.22 376.59 355.95 335.32 314.68 294.05
18.38 18.06 17.75 17.45 17.14 16.84 16.54 16.24 15.95 15.66
74.97 86.49 65.44 43.55 20.82 0 24.4 24.42 23.94 23.45
236.94 273.63 324.44 377.85 433.84 489.66 535.14 606.9 677.66 747.4
810.06 837.32 846.13 856.7 869.02 883.09 932.04 982.88 1,032.23 1,080.56
 Rs. Mn
2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 2035-36 2036-37
195 195 195 195 195 195 195 195
909.91 956.67 1,002.39 1,047.04 1,090.62 1,133.10 1,174.47 1,214.71
- - - - - - - -
22.96 22.46 21.96 21.45 20.93 20.41 19.87 19.33
1,127.87 1,174.14 1,219.35 1,263.49 1,306.55 1,348.51 1,389.34 1,429.03
650 650 650 650 650 650 650 650
376.59 397.22 417.86 438.49 459.13 479.76 500.4 521.03
273.41 252.78 232.14 211.51 190.87 170.24 149.6 128.97
15.37 15.09 14.81 14.53 14.25 13.98 13.71 13.44
22.96 22.46 21.96 21.45 20.93 20.41 19.87 19.33
816.12 883.8 950.43 1,016.00 1,080.49 1,143.88 1,206.15 1,267.29
1,127.87 1,174.14 1,219.35 1,263.49 1,306.55 1,348.51 1,389.34 1,429.03
 Cash Flow Statement

Particulars 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
Realisations 9.32 119.36 118.35 117.32 116.14 114.98 113.83 112.69 111.57
Total Inflow 9.32 119.36 118.35 117.32 116.14 114.98 113.83 112.69 111.57
O&M Expenses 0.87 3.46 3.66 3.87 4.09 4.33 4.58 4.84 5.11
Employee Cost 0.03 0.11 0.12 0.12 0.13 0.13 0.14 0.15 0.15
Admin Cost 0.01 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04
Interest on Longterm Debt 13.3 52.33 49.81 45.78 41.76 37.73 33.71 29.68 25.66
Loan Repayment - 8.75 35 35 35 35 35 35 35
Income Tax 1.94 7.92 8.12 8.61 9.09 9.58 10.07 10.55 11.03
Total Outflow 16.14 72.6 96.75 93.42 90.11 86.81 83.53 80.26 77
Net Cash Flow -6.82 46.76 21.61 23.89 26.03 28.17 30.3 32.44 34.57
Cash Flow Statement

2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32
110.45 109.35 108.25 107.17 106.1 105.04 103.99 102.95 101.92 100.9 99.89 98.89
110.45 109.35 108.25 107.17 106.1 105.04 103.99 102.95 101.92 100.9 99.89 98.89
5.41 5.72 6.04 6.39 6.75 7.14 7.55 7.98 8.44 8.92 9.43 9.97
0.16 0.17 0.18 0.19 0.2 0.21 0.22 0.23 0.24 0.25 0.26 0.28
0.04 0.04 0.04 0.04 0.04 0.05 0.05 0.05 0.05 0.05 0.05 0.05
21.63 17.61 13.58 9.56 5.53 1.51 - - - - - -
35 35 35 35 35 26.25 - - - - - -
11.52 - - - 2.75 24.4 24.42 23.94 23.45 22.96 22.46 21.96
73.76 58.54 54.85 51.18 50.28 59.56 32.23 32.19 32.18 32.18 32.21 32.26
36.69 50.81 53.41 55.99 55.82 45.48 71.76 70.76 69.74 68.72 67.68 66.63
 Rs, Mn
2032-33 2033-34 2034-35 2035-36 2036-37
97.9 96.92 95.95 95 94.05
97.9 96.92 95.95 95 94.05
10.54 11.14 11.78 12.45 13.16
0.29 0.31 0.32 0.34 0.35
0.05 0.06 0.06 0.06 0.06
- - - - -
- - - - -
21.45 20.93 20.41 19.87 19.33
32.34 32.44 32.56 32.72 32.91
65.57 64.49 63.39 62.27 61.14
 Project IRR and Equity IRR

Returns: Cost 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

Project IRR
Outflow: -650
Inflow:
PAT 8.54 42.79 43.91 46.53 49.16 51.79 54.41
Depreciation 5.16 20.63 20.63 20.63 20.63 20.63 20.63
Interest 13.3 52.33 49.81 45.78 41.76 37.73 33.71
Salvage Value
Total -650 27 115.75 114.35 112.95 111.56 110.16 108.75

Project IRR 13.63%

Equity IRR
Outflow: -195
Inflow:
PAT 8.54 42.79 43.91 46.53 49.16 51.79 54.41
Depreciation 5.16 20.63 20.63 20.63 20.63 20.63 20.63
Loan Repayment 0 8.75 35 35 35 35 35
Salvage Value
Total -195 13.7 54.67 29.54 32.17 34.8 37.42 40.05

Equity IRR 18.89%

ect IRR and Equity IRR

2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28

57.03 59.65 62.26 43.82 45.57 47.32 49.06 50.8 50.83 49.83
20.63 20.63 20.63 20.63 20.63 20.63 20.63 20.63 20.63 20.63
29.68 25.66 21.63 17.61 13.58 9.56 5.53 1.51 - -

107.35 105.94 104.53 82.06 79.79 77.52 75.23 72.94 71.46 70.46

57.03 59.65 62.26 43.82 45.57 47.32 49.06 50.8 50.83 49.83
20.63 20.63 20.63 20.63 20.63 20.63 20.63 20.63 20.63 20.63
35 35 35 35 35 35 35 26.25 0 0

42.67 45.28 47.89 29.45 31.21 32.96 34.7 45.18 71.46 70.46
2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 2035-36 2036-37

48.82 47.8 46.76 45.72 44.65 43.58 42.48 41.37 40.24

20.63 20.63 20.63 20.63 20.63 20.63 20.63 20.63 20.63
- - - - - - - - -
134.13
69.45 68.43 67.4 66.35 65.29 64.21 63.12 62 195

48.82 47.8 46.76 45.72 44.65 43.58 42.48 41.37 40.24

20.63 20.63 20.63 20.63 20.63 20.63 20.63 20.63 20.63
0 0 0 0 0 0 0 0 0
134.13
69.45 68.43 67.4 66.35 65.29 64.21 63.12 62 195
 Working Capital

Years 2011-12 2012-13

Month Ended Jan Feb Mar April May June Jul Aug Sept
Realisations - - 9.32 9.32 9.32 9.32 9.32 9.32 9.32
Total Inflow - - 9.32 9.32 9.32 9.32 9.32 9.32 9.32
O&M Expenses 0.29 0.29 0.29 0.29 0.29 0.29 0.29 0.29 0.29
Employee Cost 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01
Admin Cost 0 0 0 0 0 0 0 0 0
Interest on Longterm Debt - - 13.3 - - 13.08 - - 13.08
Loan Repayment - - - - - -
Income Tax 1.94
Total Outflow 0.3 0.3 15.54 0.3 0.3 13.38 0.3 0.3 13.38
Working Capital Requiremen 0.3 0.3 6.22 -9.02 -9.02 4.06 -9.02 -9.02 4.06
Cumulative Working
Capital Requirement 0.3 0.6 6.82 -2.2 -11.22 -7.16 -16.18 -25.2 -21.14
Working Capital

2012-13 2013-14
Oct Nov Dec Jan Feb Mar April May June Jul Aug Sept
9.32 9.32 9.32 9.32 9.32 16.82 9.32 9.32 9.23 9.23 9.23 9.23
9.32 9.32 9.32 9.32 9.32 16.82 9.32 9.32 9.23 9.23 9.23 9.23
0.29 0.29 0.29 0.29 0.29 0.29 0.31 0.31 0.31 0.31 0.31 0.31
0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01
0 0 0 0 0 0 0 0 0 0 0 0
- - 13.08 - - 13.08 - - 12.83 - - 12.58
- - - - - 8.75 - - 8.75 - - 8.75
7.92
0.3 0.3 13.38 0.3 0.3 30.05 0.32 0.32 21.9 0.32 0.32 21.65
-9.02 -9.02 4.06 -9.02 -9.02 13.23 -9 -9 12.67 -8.91 -8.91 12.42

-30.16 -39.19 -35.12 -44.15 -53.17 -39.94 -48.94 -57.94 -45.28 -54.19 -63.1 -50.68
 Rs Mn
2013-14
Oct Nov Dec Jan Feb Mar
9.23 9.23 9.23 9.23 9.23 16.65
9.23 9.23 9.23 9.23 9.23 16.65
0.31 0.31 0.31 0.31 0.31 0.31
0.01 0.01 0.01 0.01 0.01 0.01
0 0 0 0 0 0
- - 12.33 - - 12.08
- - 8.75 - - 8.75
8.12
0.32 0.32 21.39 0.32 0.32 21.14
-8.91 -8.91 12.17 -8.91 -8.91 4.49

-59.59 -68.5 -56.34 -65.25 -74.16 -69.66

 Project Debt Service Coverage Ratio (DSCR)

Details
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
A - SERVICE
Net Profit after Tax 8.54 42.79 43.91 46.53 49.16 51.79 54.41 57.03
Depreciation 5.16 20.63 20.63 20.63 20.63 20.63 20.63 20.63
Interest on term Loan 13.3 52.33 49.81 45.78 41.76 37.73 33.71 29.68
TOTAL - A 27 115.75 114.35 112.95 111.56 110.16 108.75 107.35
B - DEBT
Installment on Term L - 8.75 35 35 35 35 35 35
Interest on Term Loan 13.3 52.33 49.81 45.78 41.76 37.73 33.71 29.68
TOTAL - B 13.3 61.08 84.81 80.78 76.76 72.73 68.71 64.68
DSCR 2.03 1.9 1.35 1.4 1.45 1.51 1.58 1.66

Min DSCR 1.35

Avg DSCR 1.65
Ratio (DSCR)
Rs Mn.
2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27

59.65 62.26 43.82 45.57 47.32 49.06 50.8 50.83

20.63 20.63 20.63 20.63 20.63 20.63 20.63 20.63
25.66 21.63 17.61 13.58 9.56 5.53 1.51 -
105.94 104.53 82.06 79.79 77.52 75.23 72.94 71.46

35 35 35 35 35 35 26.25 -
25.66 21.63 17.61 13.58 9.56 5.53 1.51 -
60.66 56.63 52.61 48.58 44.56 40.53 27.76 -
1.75 1.85 1.56 1.64 1.74 1.86 2.63 -