(In Crores)

Initital Investment 5000.00

Debt/Initial Investment 0.60
Debt (Issue of Bonds) 3000.00
Equity 2000.00
Revenue in first year 1000.00
YoY increase in revenue 1.09
Operating Expenses in first year 200.00
YoY increase in OE 1.06
Interest rate on 5 year bonds 0.09
Interest rate on 10 year bonds 0.10
Interest rate on 15 year bonds 0.11
Depreciation per year as per books (SL method) 333.33
Rate of Depreciation for Tax purposes 0.25
Corporate Tax Rate 0.33
Life of project 15
YEAR -3 -2 -1 1
Revenue 1000.00
Operating Expenses 200.00
Net Revenue 800.00
Depreciation 333.33
EBIT GESTATION PERIOD 466.67
Interest Expense 795.00
PBT -328.33
Tax 0.00
PAT -328.33

-328.33
Balance Sheet excerpt -3 -2 -1 1
Shareholder's Equity
Share Capital 800.00 1400.00 2000.00 2000.00
Retained earnings 0 0 0 0
Total Shareholder's equity 800.00 1400.00 2000.00 2000.00
Dividend paid 0
EPS
 2 3 4 5 6
1090.00 1188.10 1295.03 1411.58 1538.62
212.00 224.72 238.20 252.50 267.65
878.00 963.38 1056.83 1159.09 1270.98
333.33 333.33 333.33 333.33 333.33
544.67 630.05 723.49 825.75 937.65
302.50 302.50 302.50 302.50 257.50
242.17 327.55 420.99 523.25 680.15
-79.92 -108.09 -138.93 -172.67 -224.45
162.25 219.46 282.06 350.58 455.70

-166.08 53.37 335.44 686.02 1141.72

2 3 4 5 6

2000.00 2000.00 2000.00 2000.00 2000.00

0 0 0 0 0
2000.00 2000.00 2000.00 2000.00 2000.00
0 53.3746000000002 335.439552666667 183.91276606 789.0308223846
 7 8 9 10 11
1677.10 1828.04 1992.56 2171.89 2367.36
283.70 300.73 318.77 337.90 358.17
1393.40 1527.31 1673.79 1834.00 2009.19
333.33 333.33 333.33 333.33 333.33
1060.06 1193.98 1340.46 1500.66 1675.86
257.50 257.50 257.50 257.50 157.50
802.56 936.48 1082.96 1243.16 1518.36
-264.85 -309.04 -357.38 -410.24 -501.06
537.72 627.44 725.58 832.92 1017.30

1679.43 2306.88 3032.46 3865.38 4882.68

7 8 9 10 11

2000.00 2000.00 2000.00 2000.00 2000.00

0 0 0 0 0
2000.00 2000.00 2000.00 2000.00 2000.00
871.050513221167 960.774756242341 1058.9163279453 166.253316719987 1350.63507063998
 12 13 14 15
2580.43 2812.66 3065.80 3341.73
379.66 402.44 426.59 452.18
2200.77 2410.23 2639.22 2889.55
333.33 333.33 333.33 333.33
1867.43 2076.89 2305.89 2556.21
157.50 157.50 157.50 157.50
1709.93 1919.39 2148.39 2398.71
-564.28 -633.40 -708.97 -791.58
1145.66 1285.99 1439.42 1607.14

6028.34 7314.33 8753.75 10360.88

12 13 14 15

2000.00 2000.00 2000.00 2000.00

0 0 0 0
2000.00 2000.00 2000.00 2000.00
1478.98868473768 1619.32607656858 1772.75170327653 440.470978177202
YEAR -3 -2 -1 1
Opening balance 0.00 545.00 1690.00 3492.50
Drawdown 500.00 1000.00 1500.00 0.00
Total Outstanding 500.00 1545.00 3190.00 3492.50
Interest expense 45.00 145.00 302.50 302.50
Bond Repayment 0.00 0.00 0.00 0.00
Coupons Paid 0.00 795.00
Closing Balance 545.00 1690.00 3492.50 3000.00
 2 3 4 5 6 7 8
3000.00 3000.00 3000.00 3000.00 2500.00 2500.00 2500.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00
3000.00 3000.00 3000.00 3000.00 2500.00 2500.00 2500.00
302.50 302.50 302.50 302.50 257.50 257.50 257.50
0.00 0.00 0.00 500.00 0.00 0.00 0.00
302.50 302.50 302.50 302.50 257.50 257.50 257.50
3000.00 3000.00 3000.00 2500.00 2500.00 2500.00 2500.00
 9 10 11 12 13 14
2500.00 2500.00 1500.00 1500.00 1500.00 1500.00
0.00 0.00 0.00 0.00 0.00 0.00
2500.00 2500.00 1500.00 1500.00 1500.00 1500.00
257.50 257.50 157.50 157.50 157.50 157.50
0.00 1000.00 0.00 0.00 0.00 0.00
257.50 257.50 157.50 157.50 157.50 157.50
2500.00 1500.00 1500.00 1500.00 1500.00 1500.00
 15
1500.00
0.00
1500.00
157.50
1500.00
157.50
0.00
YEAR -3 -2 -1 1 2
Capex 2000.00 4000.00 5000.00 5000.00 4666.67
Depreciation 333.33 333.33
Net 2000.00 4000.00 5000.00 4666.67 4333.33
 3 4 5 6 7 8 9
4333.33 4000.00 3666.67 3333.33 3000.00 2666.67 2333.33
333.33 333.33 333.33 333.33 333.33 333.33 333.33
4000.00 3666.67 3333.33 3000.00 2666.67 2333.33 2000.00
 10 11 12 13 14 15
2000.00 1666.67 1333.33 1000.00 666.67 333.33
333.33 333.33 333.33 333.33 333.33 333.33
1666.67 1333.33 1000.00 666.67 333.33 0.00
YEAR -3 -2 -1 1 2 3 4
Equity 800.00 600.00 600.00 0.00 0.00 0.00 0.00
Dividend paid 0.00 0.00 53.37 335.44
Net Cash flow -800.00 -600.00 -600.00 0.00 0.00 53.37 335.44
IRR 17%
 5 6 7 8 9 10 11 12 13 14
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
183.91 789.03 871.05 960.77 1058.92 166.25 1350.64 1478.99 1619.33 1772.75
183.91 789.03 871.05 960.77 1058.92 166.25 1350.64 1478.99 1619.33 1772.75
 15
0.00
440.47
440.47
YEAR -3 -2 -1 1
Cash Inflows
Equity 800.00 600.00 600.00
Bonds Issue 500.00 1000.00 1500.00
Revenue 800.00
Total Inflow 1300.00 1600.00 2100.00 800.00
Cash Outflow
Capex 1300.00 1600.00 2100.00
Coupon Payments 795.00
Principal Repayments 0.00
Tax Paid 0.00
Dividend Paid 0.00
Total Cash Outflow 795.00
Net Cash Inflow for the year 5.00
5.00
 2 3 4 5 6 7 8

878.00 963.38 1056.83 1159.09 1270.98 1393.40 1527.31

878.00 963.38 1056.83 1159.09 1270.98 1393.40 1527.31

302.50 302.50 302.50 302.50 257.50 257.50 257.50

0.00 0.00 0.00 500.00 0.00 0.00 0.00
79.92 108.09 138.93 172.67 224.45 264.85 309.04
0.00 53.37 335.44 183.91 789.03 871.05 960.77
382.42 463.97 776.87 1159.09 1270.98 1393.40 1527.31
495.59 499.42 279.96 0.00 0.00 0.00 0.00
495.59 552.79 615.40 183.91 789.03 871.05 960.77
 9 10 11 12 13 14 15

1673.79 1834.00 2009.19 2200.77 2410.23 2639.22 2889.55

1673.79 1834.00 2009.19 2200.77 2410.23 2639.22 2889.55

257.50 257.50 157.50 157.50 157.50 157.50 157.50

0.00 1000.00 0.00 0.00 0.00 0.00 1500.00
357.38 410.24 501.06 564.28 633.40 708.97 791.58
1058.92 166.25 1350.64 1478.99 1619.33 1772.75 440.47
1673.79 1834.00 2009.19 2200.77 2410.23 2639.22 2889.55
0.00 0.00 0.00 0.00 0.00 0.00 0.00
1058.92 166.25 1350.64 1478.99 1619.33 1772.75 440.47
 Principal Outstanding at year end Coupon Payments Paid
-3 500.00 0.00
-2 1500.00 0.00
-1 3000.00 0.00
1 3000.00 795.00
2 3000.00 302.50
3 3000.00 302.50
4 3000.00 302.50
5 2500.00 302.50
6 2500.00 257.50
7 2500.00 257.50
8 2500.00 257.50
9 2500.00 257.50
10 1500.00 257.50
11 1500.00 157.50
12 1500.00 157.50
13 1500.00 157.50
14 1500.00 157.50
15 0.00 157.50
Total
Principal Repayment
0.00
0.00
0.00
0.00
0.00
0.00
0.00
500.00
0.00
0.00
0.00
0.00
1000.00
0.00
0.00
0.00
0.00
1500.00