THE PROJECT IS BASED ON 8 TONS PER DAY PROCESSING OF BINOLA

DELINTING
PROJECT COST ESTIMATES
(RS. in '000')

Land

Total
------5000

Civil Work

20000

Plant & Machinery

20000

Utilities

3000

Fur/Fix/Vehicles

3000

Int/Disc During Operation

1380

Pre. & Pre.prod. Expenses

249
-------

Total Fixed Cost

52629
-------

Net Initial Working Capital

15000
-------

Total Project Cost

67629
=======

FINANCIAL PLAN

(RS. in '000')

Equity:
-------

Total
-------

Sponsors

27052
-------

Total Equity

27052
=======

Debt:
=======
Demand Finance

40577
-------

Total Debt

40577
-------

Total Capitalisation

67629
=======

Debt Equity Ratio

Sponsors'Stake in Total Capitalization

60:40
40%

ASSUMPTION UNDERLYING THE FINANCIAL PROJECTION

DELTIN
DAYS PER YEAR

OIL

KHALI

300

300

300

680

1080

6240

204000

324000

1872000

35

89

23

80%

85%

90%

95%

100%

DELTIN

163200

173400

183600

193800

204000

OIL

259200

275400

291600

307800

324000

1497600

1591200

1684800

1778400

1872000

163200

173400

183600

193800

204000

8160

8670

9180

9690

SIFT/PER DAY
QTY/PER DAY /KG
RATED CAPACITY PER ANNUM
ENDING INV %/DAYS OF ANNUM
SELLING PRICE PER TON (RS.)

0.05

P R O D U C T I O N
===================
Y E A R S
C A P A C I T Y
PRODUCTS

KHALI

DELTIN
============
ANN PRDCT
ADD:BEG INV
LESS:END INV

8160
8670
9180
9690
10200
----------------------------------------------

SALES VOLUME

155040
172890
183090
193290
203490
----------------------------------------------

SALES REV IN RS

5,426
6,051
6,408
6,765
7,122
----------------------------------------------

OIL
============
ANN PRDCT

259200

ADD:BEG INV

275400

291600

307800

324000

12960

13770

14580

15390

LESS:END INV

12960
13770
14580
15390
16200
----------------------------------------------

SALES VOLUME

246240
274590
290790
306990
323190
----------------------------------------------

SALES REV IN RS

21,915
24,439
25,880
27,322
28,764
----------------------------------------------

KHALI
============
ANN PRDCT
ADD:BEG INV

1497600

1591200

1684800

1778400

1872000

74880

79560

84240

88920

LESS:END INV

74880
79560
84240
88920
93600
----------------------------------------------

SALES VOLUME

1422720 1586520 1680120 1773720 1867320

----------------------------------------------

SALES REV IN RS

32723
36490
38643
40796
42948
----------------------------------------------

TOTAL SALES REV

60,064
66,898
70,876
74,901
78,852
=============================================

ESTIMATED INCOME STATEMENT

=========================
(RS.in'000')
YEAR ENDING
===========
CAPACITY

80%

85%

90%

95%

100%

60064

66898

70876

74901

78852

17664

18768

19872

20976

22080

2000

2200

2420

2432

2675

WATER

440

468

495

523

550

POWER

8870

9389

9907

10426

10944

205

400

600

600

600

4749

4749

4749

4749

4749

33928

35974

38043

39706

41598

1696

1799

1902

1985

1696

1799

1902

1985

2080

COST OF GOODS SOLD

32232

35871

37940

39623

41503

GROSS PROFIT

27832

31027

32936

35278

37349

SELLING

601

669

709

749

789

GEN & ADMN

950

1045

1149

1264

1390

1551

1714

1858

2013

2179

26281

29313

31078

33265

35169

SALES
COST OF GOODS SOLD:
RAW MATERIAL
LABOUR

MANUFACTURING OVERHEADS

STORES & SP/REP MAINT

DEPRECIATION
TOTAL MANUFACTURING COST

ADD BEG INV

LESS END INV

OPERATING EXPENSES:

TOTAL OPERATING EXPENSES

OPERATING PROFIT

NON OPERATING EXPENSES

AMORTIZATION OF PRE.EXP
FINANCIAL

EXPENSES:

7706

9364

9364

9364

9364

7706

9364

9364

9364

9364

NET PROFIT

18575

19949

21714

23901

25805

RETAINED EARNINGS

18575

19949

21714

23901

25805

46.34

46.38

46.47

47.10

47.37

NET PROFIT MARGIN %

30.93

29.82

30.64

31.91

32.73

RETURN ON EQUITY %

40.05

30.05

24.05

21.05

18.05

6.87

7.37

8.03

8.84

9.54

TOTAL NON OP.EXP

RATIOS:
======
GROSS PROFIT MARGIN

EARNING PER SHARE (RS)

ESTIMATED BALANCE SHEET (IN RS. 000)

===================================

END OF
CONST.P

600

27042

41054

56974

75099

97244

ACCOUNT RECEIVABLE

3003

3345

3544

3745

3943

ADVANCES & DEPOSITS

29000

30812

32625

34438

36250

36250

5000

5313

5625

5937

6250

6250

FINISH GOODS

14000

1696

1799

1902

1985

2080

TOTAL CURRENT ASSETS

48600

67866

84448

102795

123329

145767

52629

52629

52629

52629

52629

52629

4749

9498

14247

18996

23745

52629

47880

43131

38382

33633

28884

101229

115746

127579

141177

156962

174651

ASSETS
=======
CASH & BANK BALANCE

INVENTORIES
RAW MAT INV
SALARY & UTILITY
STORES & OTHERS

INVESTMENTS
FIXED ASSETS
LESS. ACCUM. DEPC
NET FIXED ASSETS
TOTAL ASSETS

LIABS & STHLDS.EQ

==================
BANK BORROWING

33600

33600

33600

33600

33600

33600

4058

8116

8116

8116

8116

4055

TOTAL CURR. LIABS

37658

41716

41716

41716

41716

37655

DEMAND FINANCE

36519

28403

20287

12171

4055

TOTAL PTC & LT DEBT

36519

28403

20287

12171

4055

STOCKHLDRS. EQUITY
CAPITAL

27052

27052

27052

27052

27052

27052

18575

38524

60238

84139

109944

27052

45627

65576

87290

111191

136996

101229

115746

127579

141177

156962

174651

1.63

2.02

2.46

2.96

3.87

38:62

24:76

12:88

4:96

0:100

CURRENT M.OF LT DEBT

RETAINED EARNINGS
TOTAL S.E
TOTAL LIABS. & S.E

RATIOS:
CURRENT RATIO
DEBT-EQUITY RATIO

ESTIMATED CASH FLOW

(RS.in'000')

END OF
CONST

26281

29313

31078

33265

35169

4749

4749

4749

4749

4749

31030

34062

35827

38014

39918

SOURCES OF FUNDS
================
OPERATING PROFIT
ADD BACK DEPRECIATION
FUNDS GENERATED FROM OPERATION
SPONSORS EQUITY

27052

DEMAND FINANCE

40577

BANK BORROWING

33600

TOTAL SOURCES
=============

101229

31030

34062

35827

38014

39918

INVESTMENTS
INTEREST ON
===========
DEMAND FINANCE

1658

3316

3316

3316

3316

BANK BORROWING

6048

6048

6048

6048

6048

SUB-TOTAL
===========

7706

9364

9364

9364

9364

4058

8116

8116

8116

8116

7176

2570

2427

2409

293

7176

2570

2427

2409

293

100629

4588

20050

19907

19889

17773

600

26442

14012

15920

18125

22145

600

27042

41054

56974

75099

27042

41054

56974

75099

97244

USES
INV IN FIXED ASSETS

52629

REPAYMENT OF
=============
DEMAND FINACNE
PAYMENT OF
INC IN C.A

48000

SUB-TOTAL
TOTAL USES
==========
CASH SURPLUS DEFICIT
CASH BALANCE OPEN
CASH CLOSING BAL

600

INTERNAL FINANCIAL RATE OF RETURN

=================================

YEAR

CAPITAL WRK.CAP OPERATING DEPRE- TAXES

WORKERS NET CASH NET CASH DIS.AT%
DISC AT %
OUTLAY
OUTLAY
PROFIT
CIATION
FUND
RETURN
INFLOW
35.73349 36.73349
----------------------------------------------------------------------------------------------------1
2
3
4
5
6
7 (3+4-5-6) (7-2+3)8
9
10
--------------------------------------------------------------------------------- -----------------0

51249

48000

-99249

-99249

-99249

7176

26281

4749

31030

38206

28148

27942

2570

29313

4749

34062

31492

17093

16844

2427

31078

4749

35827

33400

13356

13065

2409

33265

4749

38014

35605

10490

10186

293

35169

4749

39918

39625

8601

8291

35254

4334

39588

39586

6330

6057

14

34828

4334

39162

39148

4612

4381

16

34338

4334

38672

38656

3355

3164

18

33799

4334

38133

38115

2437

2282

10

16312

48593

33205

4334

37539

102444

4826

4485

======== ========
0
-2552
======== ========
INTERNAL FINANCIAL RATE OF RETURN

35.733494

Commercial Break-Even
--------------------(Third Year of Operations at 90% Capacity)

(RS.in 000)

Fixed
----Raw Material
Labour

Variable
-------19,872
2,420

Manufacturing Overhead

776

Depreciation

600

4,749

Selling Expenses

709

General & Admin.Expenses

1,150

Financial Expenses

9,364

Sales Value of Production

Commercial Break-Even

---------

---------

16,039
---------

23,601
---------

70,876
16,039
--------------------------70,876
23,601
30.53 %

x 90%

Cash Break-Even
--------------(Third Year of Operations at 90% Capacity)

(RS.in 000)

Fixed
----Raw Material
Labour

Variable
-------19,872
2,420

Manufacturing Overhead

776

Selling Expenses

600
709

General & Admin.Expenses

1,150

Financial Expenses

9,364

Repayment of Debts & TFCs

8,116

Cash Sales

Cash Break-Even

---------

---------

19,406
---------

23,601
---------

70534
19406
--------------------------70534
23601
37.21 %

x 90%

COST OF RAW MATERIAL

(RS IN 000)
FULL CAPACITY PRODUCTION
---------------------------ANNUALY REQUIREMENTS
TON

TOTAL
REQUIREMENT
PER YEAR
RS IN TH
------------------------------------------------

BANOLA

RS./TON

2400

9200

22080

-----------------------------------------------22080
------------------------------------------------

AT PROPOSED PRODUCTION LEVELS

--------------------------------YEAR
1
17664

18768

19872

20976

22080

COST OF POWER

FULL CAPACITY PRODUCTION

------------------------CONNECTED LOAD

160 KW

FIXED CHRG/ANNUM(RS'000)
VARIABLE CHRG/ANNUM(RS
=
150 KW
X
0.8

PEAK DEMAND
160 KW

300 RS/MONTH

1 /UNIT
24 HRS
X

AT PROPOSED PRODUCTION LEVELS

--------------------------------YEAR
FIXED
VARIABLE
TOTAL

150 KW

1
------

300 DAYS

12 MONTH/YR =

12 PS/UNIT =

2
------

576
10368

4
------

5
------

------

576

576

576

576

576

8294
-----8870
------

8813
-----9389
------

9331
-----9907
------

9850
-----10426
------

10368
-----10944
------

MANUFACTURING O/H

(Rs. In 000)

STORES & SPARES

---------------YEAR

0.5

0.5

100

100

200

200

200

REPAIRS & MAINTENANCE

------------------------YEAR
1

0.5

0.5

105

300

400

400

400

% OF PLANT&MACHINERY COST

% OF PLANT&MACHINERY COST

SELLING EXPENSES

(Rs. In 000)

YEAR
SELLING DIST
& ADVERTISING EXP
1% OF REVENUE

601

669

709

749

789

DEPRECIATION SCHEDULE
=======================

(Rs. In 000)

ITEM
=======

COST
(%)
APPORTMT TOTAL
======== ======== ======== =======

RATE%
=====

CIVIL WORK

20000

0.0000

20000

10

PLANT & EQUIPMENT

20000

46.4299

756

20756

10

UTILITIES

3000

6.5217

106

3106

05

FURNITURE

1000

2.1739

35

1035

10

VEHICLES

2000
4.3478
71
2071
20
==========================================
46000 59.47333

968

46968

REPAYMENT SCHEDULE
==================
(Rs. In 000)
TYPE

Demand Finance

AMOUNT

40577

GRACE.PERIOD

NO.OF.INST

10

RETURN/INT

14%

YEAR
======

RET/INT
======
1

TOTAL
======
0

1658
2

1658
1658

3316

1658
1658

3316

1658
1658

3316

1658
1658

1658

3316

1662
0

1662
16584

PD
======

INSTALMEN
TOTAL Y.END BAL
======
======
======
0
0
40577
1

4058

4058

4058

4058

4058

4058

4058

4058

4058

10

4055

11

4058

36519
32461

8116

28403
24345

8116

20287
16229

8116

12171
8113

8116

4055
0

4055
40577