5e. Fin Modified for Rolling Mill
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Option‐2 Rolling Unit- Standalone with RHF Rolling Mills - Input tpa 38400 Rolling Mills-Output tpa 37440 RETURN ON EQUITY‐ Post Tax 33% RETURN ON INVESTMENT‐ Post Tax 19% IRR % 11% Pay Back period yrs 4.32 Capital Cost 23 Land & Land Development Rs.Cr. 7.5 Factory Shed Rs.Cr. 1.0 Electrification Rs.Cr. 1.5 Errection Rs.Cr. 0.43 Contingencies Rs.Cr. 0.43 Pre‐operating Exp Rs.Cr. 0.1 WCM Rs.Cr. 5.1 Sub total 16 Main Equipment Cost 7 Rolling Mill Rs.Cr. 6 Re-Heating Furnace Rs.Cr. 1 Capital Cost Rs. Cr. 23 Debt to Equity ratio Ratio 2:1 Debt-SFC Rs. Cr. 15 Equity portion Rs. Cr. 8 Working Capital req Rs Cr. 17 Borrowing from banks Rs. Cr. 12 Interest on Working Capital Rs. Cr. 1.2 Assumptions Debt 2 Equity 1 Cost of debt 12% Income Tax 33.60% Cost of Power 6.00 Rs/Unit Manpower Option 2 Permanent manpower-Rolling Mill Executives 7 NonExecutives 6 Sub total 13 Contract Labour Item Unit Contract Labour Skilled 4 Un-Skilled 8 Total 25 Item Unit Qty. Rs/Unit Rs.Cr. Rolling Mill‐ O/p tpa 37440 Billet - Purchased from Market tpa 38400 22600 86.78 Power -110 kwh/t kwh/t 110 6.00 2.53 Fuel - Coal Rs./t Rs 600/t 2.30 Water KL/day 50 20 0.04 Manpower-Labor & Wages Nos. 25 600000 1.50 Repair & Maintenance (R&M)-2.5% on CAPEX Rs.Cr 7Cr x 2.5% 45.4 0.17 Other Manufacturing expenses Rs/t Rs 200/t 0.94 Consumables (lubr, rolls, roll pass, motors spares) Rs/t Rs 200/t 0.74 Burning Loss- 2.5% =960, 60% is NR Rs/t 38400x2.5%=960tx22600*0.6 1.30 Coversion cost- Utilities Rs. / t 2542 Interest on WC Rs. Cr. 12 12% 1.13 Depreciation Rs.Cr. 1.0 Interest on Debt Rs.Cr. 15 12% 1.84 TOTAL COST Rs.Cr. 100 Cost of Production Rs/ ton Rs. /t 26782 Coversion cost- Billet to Angle Rs. /t 4182 REVENUE‐Angles Rs.Cr. 37440 27600 103 Revenue-Others-Scrap sale= 960, 40% is Recoverable Rs Cr Recovable=960tx20000x 0.4 20000 0.77 Total Revenue Rs Cr 104 Surplus Before Tax Rs. Cr. 3.83 T R C % Option‐2 ‐ Rolling Mill with RHF Tax Rs. Cr. 33.60% 1.29 Post tax Margins Rs. Cr. 2.54 RETURN ON EQUITY ‐ Post Tax 8 33% RETURN ON INVESTMENT(ROI)‐Post Tax 23 19%
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financials for rolling mill project
Transcript of 5e. Fin Modified for Rolling Mill
Option‐2
Rolling Unit- Standalone with
RHF
Rolling Mills - Input tpa 38400
Rolling Mills-Output tpa 37440
RETURN ON EQUITY‐ Post Tax 33%
RETURN ON INVESTMENT‐ Post Tax 19%
IRR % 11%
Pay Back period yrs 4.32
Capital Cost 23
Land & Land Development Rs.Cr. 7.5
Factory Shed Rs.Cr. 1.0
Electrification Rs.Cr. 1.5
Errection Rs.Cr. 0.43
Contingencies Rs.Cr. 0.43
Pre‐operating Exp Rs.Cr. 0.1
WCM Rs.Cr. 5.1
Sub total 16
Main Equipment Cost 7
Rolling Mill Rs.Cr. 6Re-Heating Furnace Rs.Cr. 1
Capital Cost Rs. Cr. 23Debt to Equity ratio Ratio 2:1Debt-SFC Rs. Cr. 15Equity portion Rs. Cr. 8
Working Capital req Rs Cr. 17Borrowing from banks Rs. Cr. 12Interest on Working Capital Rs. Cr. 1.2
Assumptions
Debt 2Equity 1Cost of debt 12%Income Tax 33.60%Cost of Power 6.00 Rs/UnitManpower Option 2Permanent manpower-Rolling Mill
Executives 7NonExecutives 6Sub total 13
Contract Labour
Item Unit
Contract LabourSkilled 4Un-Skilled 8
Total 25
Item Unit
Qty. Rs/Unit Rs.Cr.
Rolling Mill‐ O/p tpa 37440
Billet - Purchased from Market tpa 38400 22600 86.78
Power -110 kwh/t kwh/t 110 6.00 2.53
Fuel - Coal Rs./t Rs 600/t 2.30
Water KL/day 50 20 0.04
Manpower-Labor & Wages Nos. 25 600000 1.50
Repair & Maintenance (R&M)-2.5% on CAPEX Rs.Cr 7Cr x 2.5% 45.4 0.17
Other Manufacturing expenses Rs/t Rs 200/t 0.94
Consumables (lubr, rolls, roll pass, motors spares) Rs/t Rs 200/t 0.74
Burning Loss- 2.5% =960, 60% is NR Rs/t 38400x2.5%=960tx22600*0.6 1.30
Coversion cost- Utilities Rs. / t 2542
Interest on WC Rs. Cr. 12 12% 1.13
Depreciation Rs.Cr. 1.0
Interest on Debt Rs.Cr. 15 12% 1.84
TOTAL COST Rs.Cr. 100
Cost of Production Rs/ ton Rs. /t 26782
Coversion cost- Billet to Angle Rs. /t 4182
REVENUE‐Angles Rs.Cr. 37440 27600 103Revenue-Others-Scrap sale= 960, 40% is Recoverable Rs Cr Recovable=960tx20000x
0.420000 0.77
Total Revenue Rs Cr 104
Surplus Before Tax Rs. Cr. 3.83
T R C %
Option‐2 ‐ Rolling Mill with RHF
Tax Rs. Cr. 33.60% 1.29
Post tax Margins Rs. Cr. 2.54
RETURN ON EQUITY ‐ Post Tax 8 33%
RETURN ON INVESTMENT(ROI)‐Post Tax 23 19%
