Given the P&L and Balance Sheet assumptions, calculate the following:

1. Calculate NOPAT in P&L output sheet (2014-2023)

2. Calculate Capex and Working Capital needs from 2019-2023
3. Calculate Net Cash Flow (2014-2023)
4. Apply 'goal seek' to find out terminal growth based on what market is expecting
 llowing:

market is expecting
1.Input -->
P&L assumptions

Selected case 2

FY14 FY15
INR in Crores Actual Actual
Revenue 98,548 81,753
Revenue growth % -17.0%

Case 1
Case 2
Case 3

Cost of materials consumed (45,239.6) (34,689.1)

% of revenue 46% 42%

Case 1
Case 2
Case 3

Marketing & Other Operating Expenses (31,926.8) (29,971.7)

% of revenue 32% 37%

Case 1
Case 2
Case 3

Depreciation and amortisation expenses (3,375.4) (3,472.6)

% of revenue 3% 4%

Case 1
Case 2
Case 3
Tax % 35% 35%

Case 1
Case 2
Case 3
 Scenarios:
Case 1 Optimistic
Case 2 Base
Case 3 Worst

FY16 FY17 FY18 FY19 FY20

Actual Actual Actual Forecast Forecast
91,413 100,096 112,923 116,310 119,800
11.8% 9.5% 12.8% 3% 3%

4% 4%
3% 3%
2% 2%

(38,828.1) (43,268.0) (45,902.3) (50,013) (51,514)

42% 43% 41% 43% 43%

41% 41%
43% 43%
46% 46%

(33,655.0) (35,221.2) (40,459.4) (40,709) (41,930)

37% 35% 36% 35% 35%

32% 32%
35% 35%
37% 37%

(3,536.7) (3,422.5) (3,356.7) (3,457) (3,561)

4% 3% 3% 3% 3%

3% 3%
3% 3%
3% 3%
35% 35% 35% 35% 35%

30% 30%
35% 35%
35% 35%
 FY21 FY22 FY23
Forecast Forecast Forecast
123,394 127,095 130,908
3% 3% 3%

4% 4% 4%
3% 3% 3%
2% 2% 2%

(53,059) (54,651) (56,291)

43% 43% 43%

41% 41% 41%

43% 43% 43%
46% 46% 46%

(43,188) (44,483) (45,818)

35% 35% 35%

32% 32% 32%

35% 35% 35%
37% 37% 37%

(3,668) (3,778) (3,891)

3% 3% 3%

3% 3% 3%
3% 3% 3%
3% 3% 3%
35% 35% 35%

30% 30% 30%

35% 35% 35%
35% 35% 35%
BS assumptions

FY14 FY15 FY16

INR in Crores Actual Actual Actual
Accounts Receivable 991.0 784.2 979.3
DSO 3.7 3.5 3.9

Inventory 8,441.0 8,208.1 9,400.6

DIO 68.1 86.4 88.4

Accounts Payable 7,287.1 7,494.1 7,991.6

DPO 58.8 78.9 75.1

Cash Conversion Cycle (CCC) 13.0 11.0 17.2

Net PP&E 34,214.2 31,286.4 29,183.1

% sales 35% 38% 32%
 FY17 FY18 FY19 FY20 FY21 FY22
Actual Actual Forecast Forecast Forecast Forecast
889.7 1,245.9 1,275 1,313 1,352 1,393
3.2 4.0 4.0 4.0 4.0 4.0

9,024.7 9,655.5 10,520 10,836 11,161 11,496

76.1 76.8 76.8 76.8 76.8 76.8

9,846.4 12,403.7 13,515 13,920 14,338 14,768

83.1 98.6 98.6 98.6 98.6 98.6

(3.7) (17.8) (18) (18) (18) (18)

27,103.4 25,058.2 25,809.9 26,584.2 27,381.8 28,203.2

27% 22% 22% 22% 22% 22%
 FY23
Forecast
1,435
4.0

11,841
76.8

15,211
98.6

(18)

29,049.3
22%
2.Output -->
P&L

FY14 FY15
Rs in Crores Actual Actual
Revenues
Cost of goods sold
Gross Margin
Marketing & Other Operating Expenses
EBITDA
D&A
EBIT
Taxes
Tax rate
Net Operating Profit After Taxes (NOPAT)
1.0
 FY16 FY17 FY18 FY19 FY20 FY21
Actual Actual Actual Forecast Forecast Forecast
 FY22 FY23
Forecast Forecast Note
Balance Sheet

FY14 FY15 FY16

INR in Crores Actual Actual Actual
Property, plant and equipment
Depreciation
Capex
Ending Value

Inventory
Trade receivable
Trade payable
Working Capital
 FY17 FY18 FY19 FY20 FY21
Actual Actual Forecast Forecast Forecast
 FY22 FY23
Forecast Forecast Note
Cash Flow

FY15 FY16 FY17

INR in Crores Actual Actual Actual
NOPAT
Add: Deprecitaion & Amortization
Gross Cash Flow
Less: Capex
Less: Investment in working capital
Net Cash Flow
 FY18 FY19 FY20 FY21 FY22
Actual Forecast Forecast Forecast Forecast
 FY23
Forecast Note
DCF Valuation

WACC 9.3%
Growth 2.0%

FY15 FY16
INR in Crores Actual Actual
Net Cash Flow
Discount factor
Present value

DCF value - #DIV/0!

Continuing Value -
PV of Continuing value - #DIV/0!
Enterprise value -
Less:Debt 351.4
Add:
Investments 7,333.6
Loans 401.4
Investments 19,251.3
Other current assets 223.9
Current tax assets 188.5
Other non operating financial assets 703.8
Equity Value 27,751.1
Shares outstanding 9.6
Intrinsic Value 2,878.7
 FY17 FY18 FY19 FY20 FY21 FY22
Actual Actual Forecast Forecast Forecast Forecast

0.91 0.84 0.77 0.70

- - - -

Growth
- 0% 1% 2% 3% 4%
W
7.2%
A 8.2%
C 9.2%
C
10.2%
11.2%
 FY23
Forecast Note

0.64
-
 Cost of Capital

Key Inputs:
Total Equity to Capital
Net Debt to Capital

Calculations:
Risk Free Rate
Equity Beta
Market Risk Premium
Cost of Equity

Pre-tax cost of debt

Marginal Tax Rate
Cost of Debt

Weighted Cost of Equity

Weighted Cost of Debt

Weighted Average Cost of Capital

Shares outstanding
Share price
Market Cap

Debt
ost of Capital

99.7%
0.3%

6.6%
0.55
5.0%
9.3%

9.0%
35.0%
5.9%

9.3%
0.0%

9.3%

9.64
12,439
119911.96

351.4
3.Sources -->
Income Statement
INR (cr)

Particulars Dec-14 Dec-15 Dec-16

Sales 101,295 84,304 94,096
Other operating revenues 486 520 650
Excise Duties (3,232) (3,072) (3,332)
Net Revenue 98,548 81,753 91,413
Operating expenses
Cost of materials consumed (45,240) (34,689) (38,828)
Marketing & Other Operating Expense (31,927) (29,972) (33,655)
Total operating expenses (77,166) (64,661) (72,483)
EBITDA 21,382 17,092 18,930
Depreciation and amortisation expens (3,375) (3,473) (3,537)
EBIT 18,007 13,620 15,394
Other Income 873 1,101 1,509
Interest charges (142) (33) (909)
Other non operating items (994) (6,551) (540)
Profit before tax 17,744 8,136 15,454
Tax expense (5,897) (2,504) (5,440)
Profit after tax / Net profit 11,847 5,633 10,014
 Dec-17 Dec-18
101,351 112,162
571 760
(1,826) -
100,096 112,923 Operating item

(43,268) (45,902) Operating item

(35,221) (40,459) Operating item
(78,489) (86,362)
21,607 26,561
(3,423) (3,357) Operating item
18,184 23,204
1,769 2,589 Non Operating item
(919) (1,120) Non Operating item
(641) (385) Non Operating item
18,394 24,290
(6,141) (8,220) Operating item
12,253 16,069
Balance Sheet
INR (cr)

Particulars Dec-14 Dec-15 Dec-16

ASSETS
NON-CURRENT ASSETS
Net PP&E 34,214 31,286 29,183.1
Other non-current assets 677 706.7
Investments 3,045 3,418 4,743.1
Loans 1,300 627 643.7
Total Non-Current Assets 38,558.3 36,008.5 35,276.6

CURRENT ASSETS
Cash and Cash Equivalents 4,458 4,996 8,800.0
Investments 5,074 9,879 12,813.5
Inventories 8,441 8,208 9,400.6
Trade Receivables 991 784 979.3
Other current assets 152 305 314.6
Current tax assets - 328 27.3
Other non operating financial assets 521 404 492.7
Total Current Assets 19,636.7 24,904.0 32,828.0
TOTAL ASSETS 58,195.0 60,912.5 68,104.6

Particulars Dec-14 Dec-15 Dec-16

LIABILITIES
NON-CURRENT LIABILITIES
Long Term Debt 154.6 167.9 331.5
Deferred Tax Liability 2,227.2 1,747.0 1,553.4
Other non-current liabilities - - 6.8
Provisions 13,886.6 15,971.7 19,722.1
Equity 28,372.1 30,358.6 32,823.3
Total Non-Current Liabilities 44,640.5 48,245.2 54,437.1

CURRENT LIABILITIES
Short Term Debt 41.1 9.4 -
Other Financial Liabilities - 2,492.7 3,116.4
TradePayables 7,287.1 7,494.1 7,991.6
Other current liabilities 4,095.7 2,164.7 2,021.5
Provisions 2,130.6 506.4 538.0
Total Current Liabilities 13,554.5 12,667.3 13,667.5
TOTAL LIABILITIES 58,195.0 60,912.5 68,104.6
- - -
 Dec-17 Dec-18

27,103.4 25,058.2 Operating item

832.3 718.1 Operating item
5,852.8 7,333.6 Non Operating item
463.5 401.4 Non Operating item
34,252.0 33,511.3

14,574.2 16,100.6 Operating item

13,935.9 19,251.3 Non-Operating item
9,024.7 9,655.5 Operating item
889.7 1,245.9 Operating item
169.6 223.9 Operating item
63.9 188.5 Operating item
715.9 703.8 Non-Operating item
39,373.9 47,369.5
73,625.9 80,880.8

Dec-17 Dec-18

351.4 351.4 Non-Operating item

1,219.6 588.2 Non-Operating item
6.0 5.1 Non-Operating item
22,915.9 24,649.2 Non-Operating item
34,205.9 36,737.4 Non-Operating item
58,698.8 62,331.3

- - Non-Operating item
3,140.2 3,161.8 Non-Operating item
 9,846.4 12,403.7 Operating item
1,065.9 1,411.4 Operating item
874.6 1,572.6 Operating item
14,927.1 18,549.5
73,625.9 80,880.8
- -