FINANCIAL APPRAISAL REPORT

FOR
EXPANSION AND BACKWARD INTEGRATION

AT

..........................................................................................................................................................1 PROMOTERS PROFILE .........................7 KEY EXECUTIVES AND CONSULTANTS OF THE COMPANY ................................................................................................................... 44 5.............................................................................................................................7 PLANT & MACHINERY . 35 3.............. 39 4..........6 INPUTS FOR PRODUCTION ..............................................................................10 PROJECT IMPLEMENTATION SCHEDULE ...................................................................................20 2..........................2 MANAGEMENT ..........................3 1 INTRODUCTION....9 INTEREST DURING CONSTRUCTION .........................................................................................................................................................................2 LAND & SITE DEVELOPMENT ............3 BOARD OF DIRECTORS ..... 24 3................ 42 4............................................................................................................ 24 3..............................................................11 MESH DEPOSIT............... 24 3........................................... 42 4............................................................................................... 37 3...........2 LOCATION .............................. 21 2...........5 CAPITAL STRUCTURE OF THE COMPANY AS ON ....................................................................... 37 3............................................................................................................. 25 3......................................... 41 4.................................................................................................1 EXPENDITURE INCURRED ON THE PROJECT .................................................................................................................................................................................................................................................................................8 WORKING CAPITAL MARGIN ..........TABLE OF CONTENTS EXECUTIVE SUMMARY ..................................................................................................... 41 4............................................ 22 2...................................... 39 4............................................................................................................. 20 2........................................................................................................................................................................ .............. 42 4......................................................................................................................................................................................................................................................................................................................................................................................... 23 3 PROJECT .4 MANUFACTURING PROCESS ...................4 ORGANIZATION STRUCTURE ..................................................................................................................................................................................................................................... 45 ...............................................................3 BUILDING & CIVIL WORKS ................................................................................................................................. 40 4...............................6 CONTINGENCY .........7 PRELIMINARY & PRE-OPERATIVE EXPENSES) ...............................................................6 SHAREHOLDING PATTERN AS ON .............. ........................................... ...... 25 3................ 22 2.............................................................................................................................................................................................................................................................................. 38 4 COST OF PROJECT .....................................1 PROJECT COST SUMMARY ......4 PLANT & MACHINERY .........................................................................................................................................................................................................................................................................................................................................................5 MISS FIXED ASSETS .................................................. 21 2.......... 37 3.................................................................................................................................................................. 42 5 COST COMPARISONS ......... 35 3..........19 2 COMPANY DETAILS ...............10 UPFRONT FEES................................................................... 41 4...................................................................................................1 PROPOSED EXPANSION ....................8 EFFLUENT .............. 40 4..................................................................................................................................................................................... 9 TRANSPORTATION..................5 TECHNICAL KNOW HOW .... 23 2................ 42 4......3 TECHNICAL ARRANGEMENTS/ COLLABORATION ............

............ ........ 59 7................................................................................................................................................................................8 FINANCIAL PERFORMANCE OF KEY PLAYERS .....................................................................................................................................................................................48 7 INDUSTRY ANALYSIS .......................................3 SENSITIVITY ANALYSIS ........................1 CURRENT STATUS .......... 62 8 MARKETING & SELLING ARRANGEMENTS ............................................ 54 7...................................................... 74 .....................................................................................................65 10 PROFITABILITY PROJECTIONS ......1 FINANCIALS OF THE PROPOSED PROJECT .....................................................................3 WORKING CAPITAL FINANCE.................................................................................................. ....................................... 65 9..................................................... 62 7.....................................4 SPONGE IRON AND SCRAP ........ 64 9 PROJECT STATUS .................................................................................................................................5 STEEL BILLET INDUSTRY .............2 TERM LOAN........................................................6 MEANS OF FINANCE ................STEEL INDUSTRY ............3 FINANCIALS OF THE COMPANY AS WHOLE ......... 46 6.......... ..... 46 6......................... 66 10......................................................................................1 EQUITY CONTRIBUTION................................................................. 65 9................................ 66 10............................................................................................... 50 7.................................................. 68 11 SWOT ANALYSIS ......................................................................................................................................................................................................................................................................................................................... 73 13 ANNEXURES ................................................................................. 1 INTRODUCTION .............. 46 6................................................. 67 10...........3 FUTURE STEEL DEMAND .............................................................................................2 DOMESTIC STEEL INDUSTRY...................7 CURRENT SCENARIO OF STEEL INDUSTRY ...................................... 70 12 CONCLUSIONS & RECOMMENDATIONS ....2 GOVERNMENT / STATUTORY APPROVALS REQUIRED & STATUS ......................................................................................................... 58 7...................... 50 7...........6 LONG PRODUCTS OVERVIEW ............... 53 7......................................................................... 51 7....

Total Debt Equity Ratio: Promoter's Contribution: Equity The total equity requirement for the project is projected at Rs.Promoters 4. Share capital Equity . 4.The different heads of project cost are detailed in the table given below: S. Fixed Assets Contingency Total Hard Cost Preliminary & Preoperative Exp. In Crores.No: 1. No Description 1. Term Loan Rs.) Means of Finance The project is to be funded from promoter's equity contribution and term loans from banks and financial institutions with a debt to equity ratio of-----. in Cr. 6 7 8 9 10 Description Land & Site Devt. crores. 2. internal cash accruals as well as through friends & relatives. WC Margin IDC Upfront Fees Deposit to MSEB Total Soft Cost Total Project Cost (Rs. 5. The equity for the project is proposed to be raised by the promoters through profits achieved from their personal property.) . (Lenders may stipulate suitable pre-sanction and pre-disbursement conditions as regards raising of Equity for the proposed Project. Building & Civil Works Plant & Machinery Misc. 3.The proposed means of finance for the project will be as under: S.

Government / Statutory Approvals Required & Status Approval Consent Agency Granting Approval Status Building Plan Approval Town Planning Authority Pollution Control Board State Pollution Control Board Clearance Power Supply State Electricity Board Water Supply Water Supply Authority Fire and Safety Fire & Safety Dept. Crores) Particulars Capacity Gross sales Excise duty Net Sales Other Income Cost of Sales EBIDTA Depreciation Amortisation of 3rd Year 4th Year 5th Year 6th Year 7th Year 8th Year 9th Year 10th Year . Registration under Factories Act Chief Inspector of Factories Registration of Industries District Industrial Commissioner Labor Law Registration under Labour Commissioner Contract Labour Law Explosives Chief Controller of Explosives Any other applicable clearances --- Profitability Projections Financials of the proposed project (In Rs.

DSCR Avg.preliminary expenses Interest on: Working Capital 2. DSCR . Term Loan EBT Tax Profit after Tax Net cash accruals ?aid up capital (including share premium) Current ratio PAT/Net sales (%) EBITDA/TT A (ROCE) Net worth Adj. Net worth OPM (%) Min.

4.0732039.