Customer Name : Sunflag Iron & Steel Co. Ltd. Total M/c Cost [₹]: 66,800,000 Direct Cost/Yr.

/c Cost [₹]: 66,800,000 Direct Cost/Yr. [₹]: 45,850,430

Green/brown field?: Brown Field
Equipment Type : WRP 80S
1. PRODUCTION HOUR CALCULATION :
hours per shift [h] :
1 € = 82.0 INR [₹] Buyer's Cost [₹]: 9,500,000 Inirect Cost/Yr. [₹]: 1,875,513
Supervision Cost [₹]: 9,840,000 Total Capex Cost [₹]: 96,140,000
Brownfield Cost [₹]: 10,000,000
5. ASSUMED OTHER RELATED FACTORS : 6. OPERATING/DIRECT COST CALCULATION :
8 5.1 Direct Labour calculation : Total Labour cost/ yr. [₹ ] : 432,000

shifts per day [number] : 3 No. of Labour required/shift [no.] 1 Total Wearparts cost/ yr. [₹ ] : 4,191,763

workdays per year [days] : 300 5.2 Wearparts calc.(set of straighening rolls) : Total Maintenance cost/ yr. [₹ ]: 1,002,000

efficiency [%] : 85% Lifespan of one set [h] 12,000 Total elec. Power cost/ yr. [₹ ]: 29,734,714

Nominal operating hours / year [h]: 6,120 Freqency of change/year [no.] 0.49 Total Auxiliary cost/ yr. [₹ ]: 75,000

Downtime (Let, 3%) per year [h] 190 Cost of one set [₹ ] : 2,300,000 Packaging cost/ yr. [₹ ]: 10,364,952

Effective operating hours / year [h]: 5,930 time for exchange [min] 600 Other Direct cost/ yr. [₹ ]: 50,000

5.3 Remachining calc.(set of straighening rolls) : 7. INDIRECT COST CALCULATION PER YEAR :
2. ANNUAL CAPACITY CALCULATION : Lifespan of one set [h] 2,000 Apportioned Overhead Cost [₹ ]: 1,375,513
Average Product diameter [mm] : 30 Freqency of change/year [no.] 2.97 Other Related Cost [₹ ]: 500,000
Average Line speed [m/min] : 35 Cost of remachining one set [₹ ] : 30,000
Average Annual Capacity [TPY] : 69,100 time for exchange [min] 600
5.4 Remachining calc.(Hardened Guides) :
3. MATERIAL LOSS DURING THE PROCESS : Lifespan of one set [h] 8
Process loss per Ton of Input [Kg] : 0 Freqency of change/year [no.] 741.25
Mat. loss per Ton as rejection [Kg] : 1 Cost of weld hardened surface [₹ ] : 2,000
Total Material loss per year [TPY] : 69 time for exchange [min] 15
5.5 Wearparts cost calc.(Hardened Guides) :
4. ASSUMED PER UNIT COST SCENARIO : Lifespan of one set [h] 3,000
Direct Labour cost per hr. [₹ ] : 60 Freqency of change/year [no.] 1.98
Cost of Electricity (KW) per hr. [₹ ] : 9 Cost of one set [₹ ] : 750,000
Cost of emulsion per litre [₹ ] : 150 time for exchange [min] 15
Cost of industrial water per M³ [₹ ] : 150 5.6 Emulsion requirement calculation :
Freqency of change/year [no.] 1.0
⓿ IF GREENFIELD PROJECT THEN COST : Emulsion tank capacity [Litre] 500
Approx. Shade Area [Sq. Ft ] : 1,500 Total emulsion Cost per year [₹ ] : 75,000
Shade construction cost [₹ ] : 2,400,000 5.7 Electric Power requirement calculation :
Land Cost with auxiliaries [₹ ] : 20,000,000 No. of Main drive [no.] 2
Erection cost of the shade [₹ ] : 20,000,000 Main drive motor power [KW] 170
Other costs like contingency ( [₹ ] : 10,000,000 Auxiliary drive motor power [KW] 20
Total Greenfield related cost [₹ ] : 52,400,000 Bar handling motor power [KW] 30
 Green Field
Brown Field

5.2 => 1137183.33

5.3 => 89550
5.4 => 1482515
5.5 => 1,482,515
 Starting Year of Project(Effective date of contract) : 2012 Depriciation Rate [%] : 15%
Cost of Input material per Ton [₹ ] : 200000 Assumed debt Rate [%]: 12%
Selling price of finished material per Ton [₹ ] : 202000 Assumed Tax Rate [%] : 30%
Assumed Discount rate [%] : 12.50%

↓ ITEMS YEAR = > 2012 2013 2014 2015 2016 2017 2018

0 Capex Cost (Initial Investment) [ Million ₹ ] : 76.91 19.23

1 Sales Revenue calculation :

1.1- Production per year as % of capacity [ %] : 0% 50% 100% 100% 100% 100% 100%
1.2- Production Volume without metal loss [ TPA] : 0 34550 69100 69100 69100 69100 69100
1.3- Consider metal loss [ TPA] : 0 35 69 69 69 69 69
1.4- Effective Production per year [ TPA] : 0 34515 69031 69031 69031 69031 69031
1.5- Sales Revenue per year [ Million ₹ ] : 0.00 6972.09 13944.18 13944.18 13944.18 13944.18 13944.18

2 Cost of Production calculation :

2.1- Input Raw material cost per year [ Million ₹ ]: 0.00 6903.06 13806.12 13806.12 13806.12 13806.12 13806.12
2.2- Direct Cost per year [ Million ₹ ]: 0.00 22.93 45.85 45.85 45.85 45.85 45.85
2.3- Indirect Cost per year [ Million ₹ ]: 1.88 1.88 1.88 1.88 1.88 1.88 1.88
2.4- Cost of Production per year [ Million ₹ ]: 1.88 6927.86 13853.84 13853.84 13853.84 13853.84 13853.84

3 Depriciation calculation (WDV Method) :

3.1- Capital cost per year [ Million ₹ ] : 96.14 81.72 69.46 59.04 50.19 42.66 36.26
3.2- Total Depriciation cost per year [ Million ₹ ] : 14.42 12.26 10.42 8.86 7.53 6.40 5.44
3.3- Writen Down Value [ Million ₹ ] : 81.72 69.46 59.04 50.19 42.66 36.26 30.82

4 Interest Rate on Capex (Assumed 100% financed) :

4.1- Interest cost against debt per year [ Million ₹ ] : 0.00 11.54 11.54 11.54 11.54 11.54 11.54

5 Profit Before Tax (PBT) [ Million ₹ ] : -1.88 32.69 78.80 78.80 78.80 78.80 78.80

6 Less Depriciation (3.2) [ Million ₹ ] : 14.42 12.26 10.42 8.86 7.53 6.40 5.44

7 Taxable Profit [ Million ₹ ] : -16.30 20.44 68.38 69.94 71.27 72.40 73.36

8 Tax on above [ Million ₹ ] : 0.00 6.13 20.51 20.98 21.38 21.72 22.01

9 CASH FLOW [ Million ₹ ] : -78.79 7.33 58.28 57.82 57.42 57.08 56.79
10 Net Present Value (NPV) [ Million ₹ ] : -78.79 6.52 46.05 40.61 35.85 31.67 28.01
Customer : Sunflag Iron & Steel Co. Ltd. Disc. Payback Period (in Years) : within - 4 Years

500.00

Cum. Cash
400.00 Flow
Cum. NPV
Investment

300.00

200.00

100.00

0.00
2013

2014

2015

2016

2017

2018

2019

2020

2021
2012

-100.00

-200.00