cash flow statement and balance sheet of a solar power plant in ap
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8/13/2019 Cash Flow Statement and Balance Sheet of a Solar Power Plant in AP
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APPENDIX 6A : VEGETRON LIMITED: A CASE STUDY ON FINANCIAL PROJE
Cost of Project !" Me!s of F#!!ce
Land and site development
Building
Plant and machineryMiscellaneous fixed assets(Evacuation Cost up to Interconnection point (Cables and
Preliminary expenses
Pre!operative expenses ( including interest during construction
Contingency margin("# of fixed cost
$or%ing capital margin
TOTAL
T$e %ro%ose" &e!s of f#!!ce
&hare capital
Term loans
&tate government's special incentive
o)of e*ual term loan instalments
Period of each instalment in years
+irst instalment falling due at the end of operating year
Interest rate on the outsanding term loan amount
C'rre!t sset()#*#)#t+ re,'#re&e!ts
,a- materials(including consumables
&toc%!in! process
+inished goods
Boo% debt
Trade credit
o) of e*ual annual instalments in -hich preliminary expenses -ill be -ritten off .pplicable income tax rate
/eduction allo-ed on 0ross total income
E-$#*#t 6A./ : I!terest o! Ter& Lo!s
8/13/2019 Cash Flow Statement and Balance Sheet of a Solar Power Plant in AP
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Yer
1
2
34
"
5
6
7
8
19
Yer
Installed capacity units
Production in units
Capacity utilisation&ales realisation(,s)million
Ite&
,a- materials(including consumables
&toc%!in!process
+inished goods
Boo% debts
Total current assets
Less: Trade credit for ra- materials and consumable stores
Ban% finance for -or%ing capital
Yer
Building
Plant ; machinery ; misc) fixed assets
Total
Less: Margin for -or%ing capital from long!term sources(2"# of total currentassets
8/13/2019 Cash Flow Statement and Balance Sheet of a Solar Power Plant in AP
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Yer
.) &ales realisation
B)Cost of production
,a- materials
Po-er
$ages and salaries
+actory overheadsC) .dministration ; selling expenses
.dministration expenses
&elling expenses
/) 0ross profit before interest
E) Total financial expenses
Interest on term loans
Inerest on ban% borro-ing
+)/epreciation
0) <perating profit
=) Preliminary expenses -ritten off
I) Profit>Loss before tax
?) Provision for tax@) Profit after tax
L) Less: /ividend
M) ,etained profit
) .dd: /epreciation
Preliminary expenses -ritten off
<) et cash accruals
Yer
Profit>loss before tax
.dd: depreciation for company la- purposes
Less: depreciation for tax purposes
Less: unabsorbed depreciation of earlier years
0ross total income
Less deduction u>s 79 I at 39# from gross total income for 19 years
Total income
Income tax A 33)88#
Yer &ources of +unds
&hare issue
Profit before taxation -ith interest added bac%
/epreciation
Preliminary expenses -ritten off
Increase in secured medium and long! term borro-ings
Increase in ban% borro-ings for -or%ing capital
8/13/2019 Cash Flow Statement and Balance Sheet of a Solar Power Plant in AP
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Increase in the &tate 0ovt's &pecial Incentive
Total ( .
/isposition of +unds
Capital expenditure for the proect
Increase in -or%ing capital
Preliminary expenses
/ecrease in secured medium ; long term borro-ingsInterest on term loans
Interest on ban% borro-ings for -or%ing capital
Taxation
/ividend
Total (B
<pening balance of cash in hand and at ban%
et surplus>deficit(.!B
Closing balance of cash in hand and at ban%
L#*#)#t#es
&hare capital
,eserves and surplus
&ecured loans
Term loans
$or%ing capital advance
nsecured loans
&tate 0ovt) subsidy
Current liabilities ; Provisions
TotalAssets
+ixed assets
0ross bloc%
Less: .ccumulated depreciation
et fixed assets
Investments
Current assetsD loans and advances
,a- materials
&toc%!in!process
+inished goods
Boo% debts
Cash ; ban% balancesMisc) expenditure ; losses
Preliminary expenses
Total
,eferences
http:>>efficientcarbon)com>services>energy>rene-able!energy!advisory>fre*uently!as
http:>>---)cercind)gov)in>2913>orders>&<243)pdf F Income details
http:>>---)cercind)gov)in>2913>orders>&<242)pdf Total Cost
8/13/2019 Cash Flow Statement and Balance Sheet of a Solar Power Plant in AP
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<+=
V. SRI>ARS>A
SRINIVAS PATNANA
C>INTALAPATI JANARD>AN VARMA
TULAYA S>RIVASTAVA
8/13/2019 Cash Flow Statement and Balance Sheet of a Solar Power Plant in AP
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TIONS
(,s) In millions
11)13
15)"
23)6119)"
2
2
3)982
11)"
;?.0@1
5Rs. I! &#))#o!
22)"2985
33)67144
24)1285
;?.0@1
29
9)"
2
13#
Mo!t$s
9
9
9
9)9
9
1934#
8/13/2019 Cash Flow Statement and Balance Sheet of a Solar Power Plant in AP
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Lo! o(s t t$e *e4#!!#!4
33)67144
33)67144
32)98235727)614224
2")33597
21)8"6835
17)"68682
1")291547
11)723"94
7)44"35
/
2999
1"99
6"#8)64
E-$#*#t 6A.
Nor&s #! &o!t$s
9
9
9
1)"
/
2)"99
")1"9
6)5"1
8/13/2019 Cash Flow Statement and Balance Sheet of a Solar Power Plant in AP
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/
8)64
9)99
9)99
2)99
9)"9
9)39
9)67
5)15
4)38
9)99
2)35
!9)"8
9)29
!9)68
9)99!9)68
!9)68
2)35
9)2
1)65
/
!9)68
2)351)"5
6)5"
(5)98
9)99
9)99
9)99
Co!str'ct#o! %er#o"
22)"2985
33)67144
8/13/2019 Cash Flow Statement and Balance Sheet of a Solar Power Plant in AP
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24)1285
79)43
55)83
2)99
57)83
11)"9
11)"9
At t$e e!" of t$e co!str'ct#o! %er#o"
22)"2985
33)67144
18)57
6")87
55)83
55)83
11)"9
2)99
79)43
ed!*uestions>comment!page!2comment!2548 0e
8/13/2019 Cash Flow Statement and Balance Sheet of a Solar Power Plant in AP
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8/13/2019 Cash Flow Statement and Balance Sheet of a Solar Power Plant in AP
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Land CostG Civil and 0eneral $or%s
Po-er Conditioning nitGMounting &tructures
PH ModulesCables and Tranformers
.fter the government subsidy the net cost is split in 4:5 ratio bet-een share capital and term loans
is 39# of Total Cost
8/13/2019 Cash Flow Statement and Balance Sheet of a Solar Power Plant in AP
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Lo! o(s t t$e e!" of t$e f#rst $)f +er
33)67144
33)67144
39)49328526)92"1"2
23)546997
29)257754
15)78962
13)"12"65
19)134432
5)6"5277
E-$#*#t 6A.0 : S)es re)#st#o!
1
2999
1599
79#19)37
: 2or3#!4 C%#t) Re,'#re&e!ts 5Rs.#! &#))#o!
Yers
/
9)99
9)99
9)99
9)99
9)99
9)99
9)99
De%rec#t#o! sc$e"')e for #!co&e t- %'r%oses 5 2r#tte! "o7! 8)'e &et$o"
1
2)1"9
4)434
5)"74
E-$#*#t 6A.9 Prof#t*#)#t+ Est#&tes 5Est#&tes of 2or3#!4 Res')ts 5 Rs. I! &
8/13/2019 Cash Flow Statement and Balance Sheet of a Solar Power Plant in AP
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1
19)37
9)99
9)99
2)99
9)"2
9)39
9)73
5)64
4)38
9)99
2)35
!9)91
9)29
!9)21
9)99!9)21
1)125947
!1)33
2)35
9)2
1)22
E-$#*#t 6A.6 : T- C)c')t#o! 5 Rs. I! &#))#o!
1
!9)21
2)352)1"
5)"7
(4)44
9)99
9)99
9)99
E-$#*#t 6A. : Projecte" Cs$ F)o7 Stte&e!ts 5 Rs. I! &#))#o!
/
3)59
2)35
9)2
9)99
8/13/2019 Cash Flow Statement and Balance Sheet of a Solar Power Plant in AP
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5)15
9)994)38
9)99
9)99
9)99
4)38
11)"9
1)65
13)25
E-$#*#t 6A.; : Projecte" <)!ce S$eets 5 Rs.#! &#))#o
/
22)"2985
!9)68
33)67
9)99
18)57
6")18
55)83
2)35
54)"7
9)99
9)99
9)99
9)99
13)25
1)79
68)54
neral /ata
8/13/2019 Cash Flow Statement and Balance Sheet of a Solar Power Plant in AP
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8/13/2019 Cash Flow Statement and Balance Sheet of a Solar Power Plant in AP
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<s#c Ass'&%t#o!s
Installed capacity in %ilo!units 2999
Yer
1 6"# .t the end of 19 years 89# efficiency2 79#
3 7"#
on-ards
.vg cost per unit of electricity 5)48 after "yrs increases 5)"
19#
9#
(,s) in million
1 2)9
2 2)9
3 2)2
9# This assumption is ta%en because -e are calculatin
(,s) in million
1 9)"
3#
9)3
7#
Interest rate on -or%ing finance
De%rec#t#o! rtes for
Building 3)34# 14# Companies .ct 18"5
Plant and machinery 4)6"# 13)81#
Miscellaneous fixed assets 4)6"# 13)81#
D#8#"e!"sPlanned to be paid from the year 2
"#
2
Percentage of increase 1#
5 Rs.#! &#))#o!
C%c#t+'t#)#st#o!
Cost of ra- materials andconsumables as a percentage ofsales
Cost of po-er as a percentage ofsales
24es s)r#es "'r#!4o%ert#!4 +er
Increment per year from 4th year
Fctor+ o8er$e" e-%e!ses #!+er
Increment per year from 2nd year
.dministrative expenses per yearin ,s)million
&elling expenses per year in ,s)as
a percentage of sales
Co&%!+ )7%'r%osesB'!"er str#4$t)#!e &et$o"
For #!co&e t-%'r%oses'!"er 2DV&et$o"
,ate of dividend planned for thesecond year
Increase proposed thereafter oncein years
8/13/2019 Cash Flow Statement and Balance Sheet of a Solar Power Plant in AP
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33)67144 2)29 2)29 4)38
32)982357 2)29 2)29 4)38
27)614224 2)98 1)87 4)952")33597 1)76 1)65 3)52
21)8"6835 1)5" 1)"4 3)17
17)"68682 1)43 1)32 2)64
1")291547 1)21 1)19 2)31
11)723"94 9)88 9)77 1)76
7)44"35 9)66 9)55 1)43
5)6"5277 9)"" 9)44 9)88
@ 0 9 6
2999 2999 2999 2999 2999
1699 1699 1699 1699 1699
7"# 7"# 7"# 7"# 7"#11)93 11)93 11)93 11)9" 11)9"
E-$#*#t 6A.@: De%rec#t#o! Sc$e
Asset 8)'t#o! for "
<s#c cost
1 @ Land 11)13
9)99 9)99 Building 15)"
9)99 9)99 23)61
9)99 9)99 19)"
9)99 9)99
9)99 9)99 De%rec#t#o! sc$e"')e for
9)99 9)99 Building 3)34#
4)6"#
9)99 9)99 4)6"#
@ 0 9 6
1)748 1)"89 1)357 1)165 1)912
3)716 3)275 2)728 2)435 2)986
")555 4)766 4)186 3)512 3)197
!s
Lo! o(s t t$e e!" of t$eseco!" $)f +er
I!terest for t$ef#rst $)f +er
I!terest for t$eseco!" $)f+er
Tot)#!terest fort$e ter&)o!
Assete-%e!ses
Plant ;machinery
Misc)fixedassets
Plant ;machinery
Misc)fixedassets
.nnualdepreciation
8/13/2019 Cash Flow Statement and Balance Sheet of a Solar Power Plant in AP
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@ 0 9 6
11)93 11)93 11)93 11)9" 11)9"
9)99 9)99 9)99 9)99 9)99
9)99 9)99 9)99 9)99 9)99
2)29 2)29 2)29 2)29 2)29
9)"3 9)"" 9)"5 9)"7 9)59
9)39 9)39 9)39 9)39 9)39
9)77 9)77 9)77 9)77 9)77
6)12 6)19 6)98 6)98 6)96
4)95 3)52 3)17 2)64 2)31
9)99 9)99 9)99 9)99 9)99
2)35 2)35 2)35 2)35 2)35
9)69 1)13 1)"" 1)88 2)41
9)29 9)29 9)29 9)29 9)29
9)"9 9)83 1)3" 1)68 2)21
9)99 9)99 9)99 9)17 9)489)"9 9)83 1)3" 1)51 1)61
1)125947 1)2375"27 1)2375"27 1)3"12"65 1)3"12"65
!9)52 !9)31 9)11 9)25 9)35
2)35 2)35 2)35 2)35 2)35
9)2 9)2 9)2 9)2 9)2
1)83 2)24 2)56 2)71 2)82
@ 0 9 6
9)"9 9)83 1)3" 1)68 2)21
2)35 2)35 2)35 2)35 2)352)75 3)27 3)69 4)14 4)"5
")56 4)77 4)29 3)51 3)11
(2)71 (1)59 (9)48 9)"3 1)45
9)99 9)99 9)99 9)"3 1)45
9)99 9)99 9)99 9)"3 1)45
9)99 9)99 9)99 9)17 9)48
1 @ 0 9 6
4)17 4)"5 4)"" 4)"3 4)"3
2)35 2)35 2)35 2)35 2)35
9)2 9)2 9)2 9)2 9)2
9)99 9)99
8/13/2019 Cash Flow Statement and Balance Sheet of a Solar Power Plant in AP
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5)64 6)12 6)19 6)98 6)98
1)58 3)37 3)37 3)37 3)374)38 4)95 3)52 3)17 2)64
9)99 9)99 9)99 9)99 9)99
9)99 9)99 9)99 9)99 9)17
1)13 1)13 1)24 1)24 1)3"
6)21 7)"6 7)24 6)79 6)5"
13)25 12)79 11)3" 19)21 8)"9
(9)46 (1)4" (1)14 (9)61 (9)"6
12)79 11)3" 19)21 8)"9 7)83
Yers1 @ 0 9 6
22)"2985 22)"2985 22)"2985 22)"2985 22)"2985
!2)13 !2)6" !3)95 !2)8" !2)69
32)98 27)61 2")34 21)85 17)"7
9)99 9)99 9)99 9)99 9)99
18)57 18)57 18)57 18)57 18)57
9)99 9)99 9)99
62)16 57)16 54)47 51)21 "7)97
55)83 55)83 55)83 55)83 55)83
4)61 6)96 8)42 11)67 14)13
52)22 "8)76 "6)"1 "")15 "2)79
9)99 9)99 9)99 9)99 9)99
9)99 9)99 9)99 9)99 9)99
9)99 9)99 9)99 9)99 9)99
9)99 9)99 9)99 9)99 9)99
12)79 11)3" 19)21 8)"9 7)83
1)59 1)49 1)29 1)99 9)79
65)52 62)52 57)82 5")55 52)"3
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g for current value of the ,upee and as effect of inflation
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; /?
2999 2999 2999
1699 1699 1699
7"# 7"# 7"#11)9" 11)9" 11)9"
')es 5Rs.#! &#))#o!
%rec#t#o! %'r%oses
Tot)
9)35 9)"5 12)9"
9)"3 9)73 16)75
9)66 1)18 2")55
9)34 9)"3 11)35
Co&%!+ L7 %'r%oses
9)59 5Rs.#! &#))#o!s
1)22
9)"4 Companies .ct 18"5
2)35
5Rs.#! &#))#o!s
; /?
9)769 9)647 9)543
1)79" 1)""4 1)337
2)56" 2)392 1)871
S$re of%reo%ert#8e cost
co!t#!4e!c+&r4#!
8/13/2019 Cash Flow Statement and Balance Sheet of a Solar Power Plant in AP
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; /?
11)9" 11)9" 11)9"
9)99 9)99 9)99
9)99 9)99 9)99
2)29 2)29 2)29
9)51 9)53 9)5"
9)39 9)39 9)39
9)77 9)77 9)77
6)9" 6)93 6)91
1)76 1)43 9)88
9)99 9)99 9)99
2)35 2)35 2)35
2)73 3)2" 3)56
9)29 9)29 9)29
2)53 3)9" 3)46
9)68 1)9" 1)311)74 2)99 2)15
1)453752 1)453752 1)"65456
9)37 9)"3 9)"8
2)35 2)35 2)35
9)2 9)2 9)2
2)84 3)98 3)14
; /?
2)53 3)9" 3)46
2)35 2)35 2)354)87 ")41 ")73
2)57 2)39 1)87
2)31 3)19 3)74
2)31 3)19 3)74
2)31 3)19 3)74
9)68 1)9" 1)31
; /?
4)"1 4)"9 4)47 4)45
2)35 2)35 2)35 2)35
9)2 9)2 9)2 9)2
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6)96 6)9" 6)93 6)91
3)37 3)37 3)37 1)582)31 1)76 1)43 9)88
9)99 9)99 9)99 9)99
9)48 9)68 1)9" 1)31
1)3" 1)45 1)45 1)"7
6)"3 6)48 6)32 ")"5
7)83 7)46 7)93 6)64
(9)45 (9)44 (9)28 1)4" Profits fall
7)46 7)93 6)64 8)18
; /?
22)"2985 22)"2985 22)"2985 22)"2985
!2)33 !1)8" !1)42 !9)74
1")29 11)72 7)4" 5)65
9)99 9)99 9)99 9)99
18)57 18)57 18)57 18)57
9)99 9)99 9)99 9)99
"")96 "2)96 48)22 47)12
55)83 55)83 55)83 55)83
15)48 17)74 21)29 23)""
"9)4" 47)98 4")63 43)37
9)99 9)99 9)99 9)99
9)99 9)99 9)99 9)99
9)99 9)99 9)99 9)99
9)99 9)99 9)99 9)99
7)46 7)93 6)64 8)18
9)59 9)49 9)29 9)99
"8)"2 "5)"2 "3)56 "2)"6
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is sho-n both on salaries and profits the effect -ill be negated
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as loans are being paid bac% but from the 19th year profits increase) . &olar Po-er Plant is a long term
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roect al-ays)
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