Tata Steel Limited-FPO

Open Source Financial Model

Contact
Anil Bains
anil@edupristine.com
+91 9619673853

Anirudh Gandhi
anirudh@edupristine.com
+91 9870083227

Paramdeep Singh
paramdeep@edupristine.com
+91 9892980608

Pawan Prabhat
pawna@eneev.com
+91 9867625422

Special Thanks to:

Kushal Bhagat
kushal.bhagat@gmail.com
+91 9717483505 © Neev Knowledge Management - Pristine
www.edupristine.com
+91 22 3215 6191 info@edupristine.com
+91 8080 00 55 33
Pristine is India's largest authorized training provider for CFA ®, FRM ® , PRM and Financial Modeling. It has
conducted more than 300,000+ man-hours of finance trainings for individuals and corporates in all the major Indian
cities and outside India.
Model

anagement - Pristine

odeling. It has
n all the major Indian
Tata Steel, the seventh-largest player in the global steel industry,is attempting to take advantage of strong domestic
demand from user industries by expanding its capacities here.
In India, the total steel output grew 7.4% year-on-year during the first 11 months of the calendar year 2010,which is
the fastest in BRIC countries, according to the global industry body. This pace of growth is expected to continue over
the next few years.
To part finance the expansion plan, Tata Steel is coming out with its FPO aggregating nearly 3,385 crore, which has
generated enormous interest in the investor community (both retail and institutional). Many potential investors want a
financial model in MS Excel© which can help them in a thorough analysis of the company. Creating such models have
always been a time-taking and daunting exercise.

Pristine has created an integrated valuation model based on publically available information. It is available as an open-
source model for any user. Kindly note that this model is meant for information purpose only.

The complete structure of the model and formulas, linkages etc. have been kept open to allow for any modification on
the part of the user.

Pristine conducts extensive trainings for financial modeling in MS Excel©. These trainings are targeted towards
investors/ professionals who are looking for a career in finance (Investment Banking, PE, Broking, Equity Research,
etc.). At the completion of the trainings, the participants should be able to create models like these.

© Neev Knowledge Management - Pristine

www.edupristine.com
info@edupristine.com

Pristine is India's largest authorized training provider for CFA®, FRM®, PRM and Financial Modeling. It has
conducted more than 300,000+ man-hours of finance trainings for individuals and corporates in all the major Indian
cities and outside India.
 ge of strong domestic

ar year 2010,which is
pected to continue over

3,385 crore, which has

tential investors want a
ating such models have

t is available as an open-

w for any modification on

targeted towards
king, Equity Research,
hese.

anagement - Pristine

odeling. It has
n all the major Indian
 INDEX
1. Summary Sheet
2. DuPont Analysis
3. Assumption Sheet
4. Profit & Loss Account
5. Balance Sheet
6. Cash Flow
7. Reserves & Surplus
8. Debt Schedule
9. Asset Schedule
10. Valuation
 1,500,000

Year FY 07A FY 08A FY 09A FY 10A FY 11E FY 12E

Asset 166,307 200,838 962,294 994,587 972,890 1,014,890
Cash Flow From Operations
Cash Flow From Investing 1,000,000 (185,401) (832,957) (36,174) 32,817 (117,567) (69,242)
Cash Flow From Financing 217,574 408,364 (41,123) (89,073) 27,632 (30,323)
Net Income 41,390 74,845 35,042 (20,147) 71,717 71,797

500,000
INR Millions

-
FY 06A FY 07A FY 08A FY 09A FY 10A

(500,000)

(1,000,000)
 Tata Steel Limited
FY 13E FY 14E FY 15E
1,040,640 1,040,640 1,040,640 TRUE
FALSE
(52,929) (7,909) (37,335) TRUE
(19,423) (19,423) (19,423) TRUE
85,683 94,380 117,577 TRUE

FY 10A FY 11A FY 12A FY 13A FY 14A FY 15A

Year
 Assets

CFO

CFI

CFF

Net Income

Asset

Cash Flow From

Investing
Cash Flow From
Financing
Net Income
FY 15A FY 16A
Cash Flow From
Operations
 DuPont Analysis

Sales
1,050,259

Earnings
Cost of Sales
Available
440,163 68,625

-
Income Statement

Operating
Expense divided by
477,361

Interest Expense Sales

31,365 1,050,259

Tax Expense
30,304
-

Exceptional Items

Others

2,441

Sales
1,050,259

divided by
Current Assets
515,036 Total Assets

+ 1,245,487

Net Fixed Assets

(PPE)
 730,451
Balance Sheet
Total Liabilities
950,867
Current Liabilities
384,863
+

Long Term Debt

Stockholder
566,004
Equity (SE)
294,620
Analysis

Net Profit Margin

6.5%

Return on Total Assets

(ROA)
multiplied by
5.5%

Total Asset
Turnover
0.84
Return on
Common Equity
multiplied by
(ROE)

23.3%
Total Liab + SE =
Total Assets

1,245,487

Financial Leverage
divided by multiplier
4.23

Common stock
equity
294,620
Assumptions

(Unless otherwise specified, all financials are in INR Million) FY 06A FY 07A

P&L Assumptions

Sales and Other Operating Income Growth Rate Scroll Bar 23%

Excise Duty as % of Sales CAGR 8%

Other Income Growth Rate Scroll Bar 53%

Cost of Material as % of Sales Scroll Bar 33%

Provisions for Employees as % of Revenue CAGR 7%

Manufacturing, Selling and Other Expenses as % of Sales CAGR 26%

Restructuring Cost as % of Sales Scroll Bar 0%

Contribution for Sports Infrastructure as % of Sales Scroll Bar 0%

Exchange Gain as % of Sales Scroll Bar 0%

Acturial Gain as % of Sales Scroll Bar 0%

Current Tax as % of Profit Before Tax Scroll Bar 34%

Changes in Accounting Policies as % of Sales Scroll Bar 0%

Prior Period Adjustments As % of Sales Scroll Bar 0%

Tax Impact of Adjustments as % of Sales Scroll Bar 0%

Minority Interest as % of Sales CAGR 0%

Share of Profit of Associates as % of Sales CAGR 0%

Balance Sheet

CWIP as % of Sales Scroll Bar 12%

Inventory No. of days Scroll Bar 132

Debtor No. of Days CAGR 19

Loans and Advances as % of Sales CAGR 7%

Minority Interest as % of Gross Block CAGR 3%

Creditor No of days Scroll Bar 160

Advances as % of Sales CAGR 1%

Investments Growth Rate Scroll Bar 374%

 FY 08A FY 09A FY 10A FY 11E FY 12E FY 13E FY 14E

FY 03A FY 06E FY 08E FY 08E

389% 12% -31% 3% 6% 8% 8%

FY 06A
2% 2% 2% 3% 2% 2% 2%

FY 10A FY 10E FY 10E FY 10E

122% -44% 346% 10% 10% 10% 10%

FY 41A FY 41E FY 41E FY 40E

45% 49% 42% 41% 41% 41% 40%

FY 10A FY 15E FY 15E FY 15E

13% 12% 16% 12% 13% 13% 14%

29% 24% 32% 28% 28% 28% 29%

0% 0% 3% 0% 0% 0% 0%

0% 0% 0% 0% 0% 0% 0%

0% 0% 0% 0% 0% 0% 0%

0% 4% 0% 0% 0% 0% 0%

3000% 3000% 3000% 3000%

33% 18% 126% 30% 30% 30% 30%

-4% -1% 0% 0% 0% 0% 0%

0% 0% 0% 0% 0% 0% 0%

0% 0% 0% 0% 0% 0% 0%

0% 0% 0% 0% 0% 0% 0%

0% 0% 0% 0%
0% 0% 0% 0% 0% 0% 0%
 12 14 16 14
7% 6% 9% 12% 14% 16% 14%

16 16 16 16
82 112 167 160 160 160 160

35 34 35 35
28 38 43 32 35 37 37

38
12% 9% 7% 9% 9% 8% 8%

39
1% 1% 1% 1% 1% 1% 1%

20 20 20 20
93 119 181 200 200 200 200

38 0 0 0
0% 0% 1% 1% 0% 0% 1%

20 20 20 20
-80% 90% -15% 20% 20% 20% 20%
 FY 15E

FY 08E
8%

3%

FY 10E
10%

FY 40E
40%

FY 15E
13%

28%

0%

0%

0%

0%

3000%
30%

0%

0%

0%

0%

0%
0%
 14
14%

16
160

35
35

8%

1%

20
200

0
1%

20
20%
Income Statement

(Unless otherwise specified, all financials are in INR Million) FY 06A FY 07A

Income
Sales and Other Operating Income 222,682 274,421
Less: Excise Duty 19,500 22,249
Net Income from Operations 203,182 252,172
Other Income 1,402 2,146
Total Income 204,584 254,317

Expenditure 81,776 97,541

Cost of Material 67,107 91,769
Accreation/(Reduction) in Stocks (470) (5,402)
Payment to and Provisions for Employees 17,267 20,380
Manufacturing, Selling and Other Expenses 56,376 72,454
Finance Charges 551 1,877
Depreciation 8,604 10,110
Total 149,434 191,187

Net Profit Before Tax & Exceptional Items 55,150 63,130

Exceptional Items
Restructuring Cost - -
Contribution for Sports Infrastructure - -
Exchange Gain - -
Acturial Gain - -
Total - -

Provision of Tax
Current Tax 16,200 21,455
Deferred Tax 1,450 (155)
Fringe Benefit Tax 290 174
Total 17,939 21,474

Net Profit After Tax (Before Adjustments) 37,211 41,656

Adjustments
Changes in Accounting Policies - -
Prior Period Adjustments (428) (582)
Tax Impact of Adjustments 144 196
Total (284) (386)

Net Profit/(Loss) After Adjustments 36,927 41,270

Less: Minority Interest 191 672

Add: Share of Profit of Associates 322 792

Profit / (Loss) as Restated 37,057 41,390

37,057 41,390
Balance Brought Forward from Previous Year 19,861 33,349

Balance Available for Appropriation 56,918 74,739

Appropriation
Proposed Dividends on Prefernce Shares - -
 Proposed Dividends on Ordinary Shares 7,186 9,429
Tax on Dividends 1,034 1,634
General Reserve 15,287 15,247
Special Reserve 62 40
Debenture Redemption Reserve - -
Statutory Reserve - -
Total Appropriation 23,569 26,349

Balance Carried to Balance Sheet 33,349 48,390

 FY 08A FY 09A FY 10A FY 11E FY 12E FY 13E FY 14E

1,340,868 1,499,849 1,042,298 1,073,567 1,137,981 1,229,020 1,327,341

25,531 26,557 18,367 36,352 25,101 28,036 31,973
1,315,336 1,473,293 1,023,931 1,037,215 1,112,880 1,200,984 1,295,368
4,759 2,657 11,859 13,044 14,349 15,784 17,362
1,320,095 1,475,949 1,035,790 1,050,259 1,127,229 1,216,767 1,312,730

576,595 605,293 547,506 477,361 521,087 559,088 615,557

602,287 729,377 440,915 440,163 466,572 503,898 530,937
(16,492) 19,762 6,600 6,600 6,600 6,600 6,600
168,996 179,751 164,630 128,317 148,891 162,279 179,307
382,721 363,127 331,359 297,773 319,436 343,540 383,438
40,854 32,902 30,221 31,365 38,209 32,862 33,033
41,370 42,654 44,917 44,671 46,159 46,670 46,211
1,219,736 1,367,572 1,018,642 948,889 1,025,869 1,095,848 1,179,526

100,359 108,378 17,148 101,370 101,360 120,919 133,204

- (40,945) (16,837) - - - -
(1,500) - - - - - -
5,783 - - - - - -
59,068 - - - - - -
63,351 (40,945) (16,837) - - - -

33,537 19,971 21,625 30,411 30,408 36,276 39,961

6,746 (1,219) (107) (107) (107) (107) (107)
210 188 - - - - -
40,493 18,940 21,518 30,304 30,301 36,169 39,854

123,218 48,492 (21,208) 71,066 71,059 84,750 93,350

(52,885) (16,560) - - - - -
245 (64) (118) - - - -
3,989 2,141 40 - - - -
(48,651) (14,483) (78) - - - -

74,567 34,009 (21,286) 71,066 71,059 84,750 93,350

1,403 (425) 130 895 490 340 553

1,682 607 1,269 1,546 1,228 1,272 1,583

74,845 35,042 (20,147) 71,717 71,797 85,683 94,380

11,494 75,987 (3,310) 71,717 71,797 85,683 94,380
48,390 92,740 105,552 65,983 118,277 170,652 236,913

123,235 127,782 85,405 137,700 190,075 256,335 331,293

222 1,095 459 459 459 459 459

11,679 11,679 7,092 7,092 7,092 7,092 7,092
2,078 2,176 1,543 1,543 1,543 1,543 1,543
15,491 6,722 5,526 5,526 5,526 5,526 5,526
63 42 486 486 486 486 486
- - 4,000 4,000 4,000 4,000 4,000
963 515 317 317 317 317 317
30,495 22,230 19,423 19,423 19,423 19,423 19,423

92,740 105,552 65,983 118,277 170,652 236,913 311,871

 FY 15E

1,433,529
36,848
1,396,680
19,098
1,415,778

642,113
573,411
6,600
185,459
403,708
33,869
46,347
1,249,394

166,385

-
-
-
-
-

49,915
(107)
-
49,809

116,576

-
-
-
-

116,576

701
1,702

117,577
117,577
311,871

429,447

459
 7,092
1,543
5,526
486
4,000
317
19,423

410,025
Balance Sheet

(Unless otherwise specified, all financials are in INR Million) FY 06A FY 07A

Assets
Fixed Assets
Gross Block 166,307 200,838
Less: Acculated Depreciation 71,058 90,892
Less: Impairment 942 1,004
Net Block 94,307 108,942

Capital Work in Progress 13,574 33,264

Total Fixed Assets 107,881 142,205

Goodwill 1,140 2,197

Investments 34,789 164,975

Current Assets, Loans and Advances

Inventories 27,733 38,881
Sundry Debtors 12,187 16,865
Cash and Bank Balances 7,768 108,880
Deferred Tax Assets 16 69
Interest Accrued on Investments 11 12
Loans and Advances 11,372 19,633
Total Current Assets 59,087 184,341

Total Assets 202,897 493,717

Liabilities
Loans Fund
Secured Loans 25,034 49,612
Unsecured Loans 8,740 199,643

Current Liabilities & Provisions

Deferred Tax Liabilities 9,938 7,929
Minority Interest 1,277 6,021
Waarants Issued by Subsidiary Company - 175
Provision for Employee Separation Compensation 14,026 11,183
Current Liabilities 32,309 54,408
Provisions 10,947 20,637
Total Current Liabilities & Provisions 68,496 100,352

Total Liabilities 102,270 349,607

Net Worth represented by

Share Capital 5,530 5,800
Share Warrants - 1,471
Reserves & Surplus 97,657 138,938
Add/(Less) Foreign Currency Monetary Item - -
Less: Miscellaneous Expenditure (2,560) (2,098)
Net Worth 100,627 144,110
Total Libialities & Equity Capital 202,897 493,717

Check TRUE TRUE

 FY 08A FY 09A FY 10A FY 11E FY 12E FY 13E FY 14E

962,294 994,587 972,890 1,014,890 1,040,640 1,040,640 1,040,640

599,389 598,581 579,029 623,699 669,858 716,528 762,739
31,717 31,830 28,610 - - - -
331,187 364,175 365,252 391,191 370,782 324,112 277,901

88,476 88,883 92,706 128,828 159,317 196,643 185,828

419,663 453,059 457,958 520,019 530,099 520,755 463,729

180,500 153,649 145,418 145,418 145,418 145,418 145,418

33,674 64,111 54,178 65,013 78,016 93,619 112,343

230,643 216,684 186,866 199,030 210,020 231,754 233,725

185,583 129,535 115,124 73,202 146,211 103,606 163,929
42,319 61,484 68,151 149,820 56,867 193,727 215,073
297 1,074 1,488 1,488 1,488 1,488 1,488
90 68 76 76 76 76 76
155,823 130,768 68,460 91,421 100,778 100,345 106,533
614,755 539,614 440,166 515,036 515,441 630,995 720,825

1,248,592 1,210,432 1,097,721 1,245,487 1,268,975 1,390,788 1,442,315

354,150 342,439 280,593 290,593 279,693 279,693 279,693

182,098 256,566 250,410 275,410 275,410 275,410 275,410

24,841 18,168 18,029 18,029 18,029 18,029 18,029

8,368 8,974 8,843 14,409 10,668 11,073 11,494
175 175 175 175 175 175 175
10,801 10,424 9,637 9,637 9,637 9,637 9,637
263,328 230,717 233,788 276,640 262,393 317,542 293,690
64,504 71,480 65,974 65,974 65,974 65,974 65,974
372,017 339,938 336,446 384,863 366,876 422,429 398,998

908,264 938,943 867,450 950,867 921,980 977,533 954,102

62,026 62,028 8,867 9,437 9,437 9,437 9,437

- - - - - - -
279,858 215,233 219,334 285,183 337,557 403,818 478,776
- (4,717) 2,070 - - - -
(1,556) (1,055) - - - - -
340,328 271,489 230,271 294,620 346,995 413,256 488,213
1,248,592 1,210,432 1,097,721 1,245,487 1,268,975 1,390,788 1,442,315

TRUE TRUE TRUE TRUE TRUE TRUE TRUE

 FY 15E

1,040,640
809,086
-
231,554

200,694

432,248

145,418

134,812

268,992
113,119
396,087
1,488
76
120,281
900,044

1,612,523

279,693
275,410

18,029
12,002
175
9,637
365,235
65,974
471,052

1,026,155

9,437
-
576,930
-
-
586,367
1,612,523

TRUE
Reserves

(Unless otherwise specified, all financials are in INR Million) FY 06A FY 07A

Reserves & Surplus

Securities Premium Account 8,292 22,594
Amalgamation Reserve 11 11
Debenture Redemption Reserve 646 646
Capital Redemption Reserve 208 208
Capital Reserve 160 160
Capital Reserve (Arising on Consolidation) 110 159
General Reserve 47,375 59,316
Investment Allowance (Utilised) Reserve 2 2
Export Profit Reserve 13 13
Foreign Exchange Fluctuation Reserve - (52)
Foreign Currency Translation Reserve 110 15
Contributions for Capital Expenditure 371 427
Contingency Reserve 100 100
Debenture Forfeiture Reserve 0 0
Special Reserve 196 236
Statutory Reserve - -
Acturial Gain/(Loss) - -
Cash Flow Hedge Reserve - -
Impact of Restaments 6,714 6,714
Total Reserves & surplus (Before P&L) 64,308 90,548

Profit & Loss Account 33,349 48,390

Total Reserves & surplus 97,657 138,938

FY 08A FY 09A FY 10A FY 11E FY 12E FY 13E FY 14E

63,921 61,128 140,315 140,315 140,315 140,315 140,315

11 11 4 4 4 4 4
646 646 1,046 1,046 1,046 1,046 1,046
208 208 208 208 208 208 208
165 193 216 216 216 216 216
162 165 202 202 202 202 202
76,972 78,394 83,919 83,919 83,919 83,919 83,919
2 2 2 2 2 2 2
13 13 13 13 13 13 13
397 14 14 14 14 14 14
(12,733) (48,712) (59,970) (59,970) (59,970) (59,970) (59,970)
465 572 729 729 729 729 729
100 100 100 100 100 100 100
0 0 0 0 0 0 0
299 341 827 827 827 827 827
963 1,478 1,795 1,795 1,795 1,795 1,795
59,068 4,103 (3,131) (3,131) (3,131) (3,131) (3,131)
- - 615 615 615 615 615
(3,542) 11,025 (13,554) - - - -
187,117 109,680 153,352 166,905 166,905 166,905 166,905

92,740 105,552 65,983 118,277 170,652 236,913 311,871

279,858 215,233 219,334 285,183 337,557 403,818 478,776

FY 15E

140,315
4
1,046
208
216
202
83,919
2
13
14
(59,970)
729
100
0
827
1,795
(3,131)
615
-
166,905

410,025

576,930
Revenue

(Unless otherwise specified, all financials are in $ Million) FY 06A FY 07A

Revenue Extracted
External Sales
Steel 171,089 213,430
Others 32,093 38,742
Unallocable - -
Elimainations - -
Total External Sales 203,182 252,172
 FY 08A FY 09A FY 10A FY 11E FY 12E FY 13E FY 14E

1,177,332 1,334,818 937,062

133,860 131,755 82,972
4,144 6,719 3,898
- - -
1,315,336 1,473,293 1,023,931
FY 15E
Cash Flow Statement

(Unless otherwise specified, all financials are in INR Million) FY 06A FY 07A

Cashflow from Operations

PAT 41,390
Less: Depreciation 19,834
Less: Increase in Inventories (11,148)
Less: Increase in Sundry Debtors (4,678)
Less: Increase in Deferred Tax Asstes (53)
Less: Increase in Loans and Advances (8,262)
Less: Increase in Interest Accrued on Investments (1)
Add: Increase in Current Liabilities 22,099
Add: Increase in Minority Interest 4,745
Add: Increase in Waarants Issued by Subsidiary Company 175
Add: Increase in Provision for Employee Separation Compensation (2,843)
Add: Increase in Deferred Tax Liabilities (2,009)
Add: Increase in Provisions 9,690
Net Cashflow from Operations 68,939

Cashflow from Investment Activities

Less: Increase in Gross Block(Fixed Asstes) (34,531)
Less: Imapairement 62
Less: Increase in CWIP (19,690)
Less: Increase in Goodwill (1,057)
Less: Increase in Investments (130,186)
Net Cashflow from Investment Activities (185,401)

Cashflow from Financing Activities

Less: Increse in Reserves 26,240
Less: Appropriations (26,349)
Add: Increase in Secured Loans 24,578
Add: Increase in Unsecured Loans 190,903
Add: Increase in Share Warrants 1,471
Less: Miscelleaneous Expensiture 462
Less; Foreign Currency Monetary Item -
Add: Increase in Share Capital 270
Net Cashflow from Financing Activities 217,574

Net Change in Cash 101,112

Cash Balance
Opening Cash Balance 7,768
Net Cashflow 101,112
Closing Cash Balance 108,880

Cash Balance in Balance Sheet 7,768 108,880

Check TRUE
 FY 08A FY 09A FY 10A FY 11E FY 12E FY 13E FY 14E

74,845 35,042 (20,147) 71,717 71,797 85,683 94,380

508,497 (808) (19,552) 44,671 46,159 46,670 46,211
(191,762) 13,959 29,818 (12,163) (10,991) (21,733) (1,972)
(168,718) 56,048 14,411 41,923 (73,010) 42,606 (60,323)
(228) (777) (414) - - - -
(136,190) 25,055 62,309 (22,961) (9,358) 434 (6,189)
(78) 22 (8) - - - -
208,920 (32,611) 3,070 42,852 (14,246) 55,148 (23,852)
2,347 606 (131) 5,565 (3,740) 405 421
- - - - - - -
(383) (376) (787) - - - -
16,913 (6,673) (139) - - - -
43,868 6,975 (5,506) - - - -
358,032 96,461 62,923 171,604 6,612 209,212 48,678

(761,456) (32,293) 21,697 (42,000) (25,750) - -

30,713 113 (3,221) (28,610) - - -
(55,212) (408) (3,823) (36,122) (30,489) (37,326) 10,815
(178,303) 26,850 8,231 - - - -
131,301 (30,437) 9,933 (10,836) (13,003) (15,603) (18,724)
(832,957) (36,174) 32,817 (117,567) (69,242) (52,929) (7,909)

96,570 (77,437) 43,671 13,554 - - -

(30,495) (22,230) (19,423) (19,423) (19,423) (19,423) (19,423)
304,538 (11,711) (61,846) 10,000 (10,900) - -
(17,546) 74,469 (6,156) 25,000 - - -
(1,471) - - - - - -
541 502 1,055 - - - -
- (4,717) 6,786 (2,070) - - -
56,226 2 (53,160) 570 - - -
408,364 (41,123) (89,073) 27,632 (30,323) (19,423) (19,423)

(66,561) 19,165 6,667 81,669 (92,953) 136,860 21,347

108,880 42,319 61,484 68,151 149,820 56,867 193,727

(66,561) 19,165 6,667 81,669 (92,953) 136,860 21,347
42,319 61,484 68,151 149,820 56,867 193,727 215,073

42,319 61,484 68,151 149,820 56,867 193,727 215,073

TRUE TRUE TRUE TRUE TRUE TRUE TRUE
FY 15E

117,577
46,347
(35,267)
50,809
-
(13,748)
-
71,545
509
-
-
-
-
237,771

-
-
(14,866)
-
(22,469)
(37,335)

-
(19,423)
-
-
-
-
-
-
(19,423)

181,014

215,073
181,014
396,087

396,087
TRUE
Debt Schedule

(Unless otherwise specified, all financials are in INR Million) FY 06A FY 07A

Unsecured Loans
Opening Balance 8,740
Add: New Issued 190,903
Less: Repayments
Closing Balance 8,740 199,643

Secured Loans
Opening Balance 25,034
Add: New Issued 24,578
Less: Repayments -
Closing Balance 25,034 49,612

Average Loan Outstanding 70,757

Interest Rate % 3%
Interest Expense 1,877

Historical Debt Sources

Secured Loans Extracted
Banks and Financial Institutions 635 27,357
Joint Plant Committee Steel Development Fund 16,093 16,502
Privately Placed Non Convertible Debentures 4,625 1,750
Working Capital Demand Loans / Term Loans from Banks 2,953 1,221
Cash Credit / Packing Credits from Banks 722 2,738
Government of India 0 0
Assets Under Lease 7 44
Total Secured Loans 25,034 49,612
TRUE TRUE
Unsecured Loans Extracted
Banks and Financial Institutions 8,102 198,813
Fixed Deposits (including interest accrued and due) 369 241
Privately placed non–convertible debentures - -
Housing Development Finance Corporation Ltd 124 87
Convertible Alternate Account Securities - -
Foreign Currency Convertible Bonds - -
Assets under lease - -
Interest free loans under Sales Tax Deferral Scheme 6 5
Others 140 497
Total Unsecured Loans 8,740 199,643
TRUE TRUE
FY 08A FY 09A FY 10A FY 11E FY 12E FY 13E FY 14E

199,643 182,098 256,566 250,410 275,410 275,410 275,410

- 74,469 - 25,000 - - -
17,546 - 6,156 - - - -
182,098 256,566 250,410 275,410 275,410 275,410 275,410

49,612 354,150 342,439 280,593 290,593 279,693 279,693

304,538 - - 10,000 - - -
- 11,711 61,846 - 10,900 - -
354,150 342,439 280,593 290,593 279,693 279,693 279,693

196,376 283,813 282,502 274,252 280,277 277,552 277,552

21% 12% 11% 11.44% 13.63% 11.84% 11.90%
40,854 32,902 30,221 31,365 38,209 32,862 33,033

327,261 317,512 256,729

17,006 17,524 18,055
834 868 450
1,200 500 900
3,687 2,352 1,146
0 0 0
4,161 3,682 3,312
354,150 342,439 280,593
TRUE TRUE TRUE

130,088 162,421 145,462

144 68 64
- 32,500 54,009
55 30 12
43,299 54,739 21,168
- - 24,572
7,931 6,339 4,496
5 5 38
576 464 588
182,098 256,566 250,410
TRUE TRUE TRUE
FY 15E

275,410
-
-
275,410

279,693
-
-
279,693

277,552
12.20%
33,869
Sundry Debtors

(Unless otherwise specified, all financials are in $ Million) FY 06A FY 07A

Sundry Debtors Extracted

Due for a period exceeding six months 1,573 2,927
Others 11,355 15,818
Less: Provision for doubtful debts 741 1,880
Total Sundry Debtors 12,187 16,865
FY 08A FY 09A FY 10A FY 11E FY 12E FY 13E FY 14E

7,523 8,043 7,819

182,815 126,362 112,467
4,754 4,870 5,162
185,583 129,535 115,124
FY 15E
Current Liabilities

(Unless otherwise specified, all financials are in INR Million) FY 06A FY 07A

Current Liabilites
Sundry Creditors 29,662 50,766
Interest Accrued but not Due 289 498
Advances Received from customers 2,056 2,910
Unpaid Dividens etc. 302 234
Total Current Liabilities 32,309 54,408
FY 08A FY 09A FY 10A FY 11E FY 12E FY 13E FY 14E

256,300 217,933 220,102 262,268 249,044 303,173 278,675

3,186 5,502 7,712 7,712 7,712 7,712 7,712
3,368 6,783 5,453 6,138 5,116 6,135 6,782
475 499 521 521 521 521 521
263,328 230,717 233,788 276,640 262,393 317,542 293,690
FY 15E

349,721
7,712
7,281
521
365,235
Assets Schedule

(Unless otherwise specified, all financials are in INR Million) FY 06A FY 07A

Opening Gross Block 166,307

Addition of Asset 34,531
Removal of Asset -
Closing Gross Block 166,307 200,838

Depreciation Expense 8,604 10,110

Accumulated Depreciation 71,058 90,892
Imapirment 942 1,004
Net Block 94,307 108,942
FY 08A FY 09A FY 10A FY 11E FY 12E FY 13E FY 14E

200,838 962,294 994,587 972,890 1,014,890 1,040,640 1,040,640

761,456 32,293 - 42,000 25,750 - -
- - 21,697 - - - -
962,294 994,587 972,890 1,014,890 1,040,640 1,040,640 1,040,640

41,370 42,654 44,917 44,671 46,159 46,670 46,211

599,389 598,581 579,029 623,699 669,858 716,528 762,739
31,717 31,830 28,610 - - - -
331,187 364,175 365,252 391,191 370,782 324,112 277,901
 FY 15E

1,040,640
-
-
1,040,640

46,347
809,086
-
231,554
Valuation

Risk Free Rate 6.38%

Market Risk Premium 9%
Beta 1.54
Cost of Equity 20%
Tax Rate 34%
Terminal Growth Rate 2%
No of shares Outstanding Millions 943.74
Tax Rate 34%
(Unless otherwise specified, all financials are in INR Million) FY 06A FY 07A

Net Income 41,390

Add: Depreciation 10,110
Add: Interest*(1-Tax Rate) 1,239
Less: Fixed Capital Investment 34,531
Less: Increase in Work in Progress 19,690
Working Capital Investment
Inventories 11,148
Sundry Debtors 4,678
Deferred Tax Assets 53
Interest Accrued on Investments 1
Loans and Advances 8,262
Deferred Tax Liabilities 2,009
Minority Interest (4,745)
Waarants Issued by Subsidiary Company (175)
Provision for Employee Separation Compensation 2,843
Current Liabilities (22,099)
Provisions (9,690)
Less:Total Working Capital Investment (7,715)
Free Cash Flow to firm 3,755
Less: Interest*(1-Tax Rate) (1,239)
Add: Net Borrowing 215,481
Free Cash Flow to Equity 220,475

Present Value of FCFE 337,896

Terminal Value of FCFE 263,359
Total Free Cash Flow to Equity 601,255
Value Per share Rs. 637
 FY 08A FY 09A FY 10A FY 11E FY 12E FY 13E FY 14E

74,845 35,042 (20,147) 71,717 71,797 85,683 94,380

41,370 42,654 44,917 44,671 46,159 46,670 46,211
26,964 21,715 19,946 20,701 25,218 21,689 21,802
761,456 32,293 (21,697) 42,000 25,750 - -
55,212 408 3,823 36,122 30,489 37,326 (10,815)

191,762 (13,959) (29,818) 12,163 10,991 21,733 1,972

168,718 (56,048) (14,411) (41,923) 73,010 (42,606) 60,323
228 777 414 - - - -
78 (22) 8 - - - -
136,190 (25,055) (62,309) 22,961 9,358 (434) 6,189
(16,913) 6,673 139 - - - -
(2,347) (606) 131 (5,565) 3,740 (405) (421)
- - - - - - -
383 376 787 - - - -
(208,920) 32,611 (3,070) (42,852) 14,246 (55,148) 23,852
(43,868) (6,975) 5,506 - - - -
225,310 (62,228) (102,623) (55,216) 111,345 (76,859) 91,914
(952,727) 85,507 125,321 72,781 (74,846) 150,197 37,691
(26,964) (21,715) (19,946) (20,701) (25,218) (21,689) (21,802)
286,992 62,758 (68,002) 35,000 (10,900) - -
(638,771) 169,980 77,265 128,482 (60,528) 171,886 59,493
FY 15E

117,577
46,347
22,354
-
14,866

35,267
(50,809)
-
-
13,748
-
(509)
-
-
(71,545)
-
(73,848)
200,552
(22,354)
-
222,905
This open source financial model is for information purposes only. Due efforts have been taken by Pristine and its
employees in preparation of this model to ensure that the information is accurate to the best of their knowledge and
belief. The primary source of information contained in the report has been the DRHP filing of the company with SEBI.
Pristine, makes no representations or warranties regarding the accuracy or completeness of such information and
expressly disclaims any and all liabilities based on such information or on omissions there from.

The analysts who compiled this open source financial model hereby state that the contents in the document reflect
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from time to time to seek establish business or financial relationships with companies covered in the open research
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that could affect the objectivity of this report.

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www.edupristine.com
info@edupristine.com

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conducted more than 300,000+ man-hours of finance trainings for individuals and corporates in all the major Indian
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n by Pristine and its
f their knowledge and
he company with SEBI.
uch information and
m.

the document reflect

o conduct trainings and
d in the open research
conflicts of interests

anagement - Pristine

odeling. It has
n all the major Indian