CHAPTER 9 CAPITAL COST ESTIMATES & FINANCIAL ANALYSIS

CHAPTER 9 CAPITAL COST ESTIMATES & FINANCIAL ANALYSIS

TATA Consulting Engineers Limited Capital Cost Estimation Sr. No. COST ESTIMATION FOR PLANTS / UTILITIES AND OTHERS UNIT / SYSTEM BASIS COST (INR Lakhs) (At Site) 1 PVC Plant Refer Note 1 35854 2 Gas Storage Terminal Refer Note 5 33600 3 PMB Plant Refer Note 2 4900 4 Gas Based Power Plant Refer Note 6 6650 Utilities and Auxiliary System 5 Quality control equipment 300 6 Pipelines from Jetty to gas terminal Refer Note 14 1100 7 HRSG Boiler Refer Note 4 500 8 Gas Fired Boiler Refer Note 4 350 9 ETP plant (ZLD) Refer Note 2 2700 10 STP Refer Note 2 40 11 Nitrogen Gas generation Unit Refer Note 2 45 12 DM Water Plant Refer Note 3 3000 13 DM Water tank & Potable water tank including transfer pumps & Instruments Refer Note 4 150 14 Cooling Water System Refer Note 7 295 15 SWRO system Refer Note 4 1000 16 Sea water intake and Pipelines for Sea water intake & Rejects Refer Note 2 1100 17 compressed air system Refer Note 7 225 18 Mech., Elect & Inst. Workshop Refer Note 7 200 19 Air conditioning & Ventilation system Refer Note 4 600 20 Fire Protection system Refer Note 4 625

TATA Consulting Engineers Limited Capital Cost Estimation Sr. No. COST ESTIMATION FOR PLANTS / UTILITIES AND OTHERS UNIT / SYSTEM BASIS COST (INR Lakhs) (At Site) 21 22 Auxiliaries System FDS, CCTV, EPABX etc.) Raw water pipeline from kudki dam to plant Refer Note 11 492 Refer Note 14 150 23 Weigh Bridges Refer Note 4 55 24 Yard Piping Refer Note 12 858 25 I&C system Refer Note 12 429 26 Electrical Refer Note 12 751 Sub total of Utilities & Auxiliaries System 14965 Civil works & Erection & Commissioning 27 Civil works Refer Note 13 7296 28 Erection & Commissioning of PVC Plant Sub total of Civil works & erection & commissioning Refer Note 10 2510 9806 Others 28 consultency & liasioning fees 2000 29 Project Administrative Expenses 200 30 Office Furniture & Equipment 400 31 Topographical survey, Geotech & Land levelling & statutory clearances 300 Sub total of others 2900 SUB TOTAL - 108675

TATA Consulting Engineers Limited Capital Cost Estimation Sr. No. COST ESTIMATION FOR PLANTS / UTILITIES AND OTHERS UNIT / SYSTEM BASIS COST (INR Lakhs) (At Site) 32 Contingeny @ 8% 8694 TOTAL - 117369

Basis Of Cost estimation Note 1 : Cost of Inside Battery Limit (ISBL) Plant & Machinery for PVC plant including, Electrical, Automation, ISBL piping, structure steel, process licensor fees, dismantling & Transportation cost up to site for PVC Plant is received in INR from Client. Conversion rate of 1USD = INR 70 is considered Note 2 : Cost indicated is including Design, Engineering, Supply, Erection, commissioning on EPC basis of Plant & machinery including piping, electrical, automation, civil structures within system battery limits. Cost is based on inhouse data of the similar capacity. Note 3 : Cost indicated is including Design, Engineering, Supply, Erection, commissioning on EPC basis of Plant & machinery including piping, electrical, automation, civil structures within system battery limits. Cost is based on inhouse data & discussion with Vendor of the similar capacity. Note 4 : Cost indicated is including Design, Engineering, Supply, Erection, commissioning on EPC basis of Plant & machinery including piping, electrical, automation excluding civil within system battery limits. Cost is based on inhouse data & discussion with Vendor of the similar capacity. Note 5 : Cost indicated is including Design, Engineering, Supply, Erection, commissioning on EPC basis of bullets including piping, electrical, automation, civil structures within battery limits. Cost is based on inhouse data & after discussion with Vendor of the similar capacity. Note 6: Cost indicated is based on offer received from Vendor including Design, Engineering, Supply, Erection, commissioning on EPC basis excluding civil works of natural gas based Captive power plant including piping, electrical, automation within battery limits. Note 7 :Cost indicated is including Design, Engineering, Supply, Erection, commissioning on EPC basis of Plant & machinery including electrical, automation excluding civil & piping within system battery limits. Cost is based on inhouse data of the similar capacity. Note 8 : Cost indicated is received from Client. Note 9 : Transportation cost is included in the respective packages. Note 10: 7% of the total cost of PVC plant is considered as Erection cost of PVC plant. Note 11: Bill of quantity is estimated based on plot plan and unit price is considered based on previously executed project/ in house data. Cost indicated including Design, Engineering, Supply, Erection, commissioning. Note 12: Cost of piping, electrical & Instrumentation is considered based on 8%, 7% & 4% of capital cost of PMB plant & utilities excluding cost of quality control equipment, pipelines from jetty to gas terminal and ETP & DM water plant respectively. Note 13: Dimension of the building is provided by Client. Reference of costing is from inhouse data of previous executed project. Note 14: Cross country piping cost is based on inhouse data of previous executed project.

Note 15: Market analysis report is provided by Client. Note 16: Financial analysis is done by Client based on capital cost provided by TCE. Note 17: Production cost is estimated by Client. Note 18: Cost indicated is on site basis.

Project : PVC Conversion Rate 1 USD = INR 70 70.00 Sr Particulars US$ INR in Millions in Crs 1 2 3 4 5 Plant & Machinery Civil construction and Errection Cost Others Utilities Contingencies 51.22 14.01 4.14 21.38 12.42 358.54 98.06 29.00 149.65 86.94 Total 103.17 722.19 Part B 1 2 3 Storage Tanks PMB Plant Captive Power Plant 48.00 7.00 9.50 336.00 49.00 66.50 64.50 451.50 167.67 1,173.69 Project Funded By Sr 1 2 Term Loan Required Equity Funding Particulars %age Rs in Crs 80 20 938.95 234.74 100 1,173.69

SES PVC Const 1 Const 2 3 led Capacity 150000 150000 1500 of Capacity Utilization 100% 100 tional Capacity 150000 150000 1500 Nos of Days/p.a tional Running Time 300 7200 72 Raw Materials Requirement /Mt 70 VCM MT 1.004 150600 590 42745.5 643.75 0 0 150600 1506 - - 643.75 643.7 icals Total Additives & Initiators Kgs 3.05 457500 210 9.61 0 0 457500 4575 es - - 9.61 9.6 Electricity Mwh 0.26 39000 1,450.00 5.66 0 0 39000 390 IP Steam MT 0.34 51000 120.00 0.61 0 0 51000 510 Demin Water M3 2.6 390000 200.00 7.80 0 0 390000 3900 Nitrogen Nm3 1.2 180000 20.00 0.36 0 0 180000 1800 Raw Water Ltr 7000 1050000000 0.10 10.50 0 0 1050000000 10500000 Fuel Gas GJ 0.82 123000 524.00 6.45 0 0 123000 1230 ging MT 40 6024000 45 27.11 0 0 6024000 60240 es Electricity Mwh 0.26 39000 1,450.00 5.66 - - 5.66 5.6 IP Steam MT 0.34 51000 120.00 0.61 - - 0.61 0.6 Demin Water M3 2.6 390000 200.00 7.80 - - 7.80 7.8 Nitrogen Nm3 1.2 180000 20.00 0.36 - - 0.36 0.3 Raw Water Ltr 7000 1050000000 0.10 10.50 - - 10.50 10.5 Fuel Gas GJ 0.82 123000 524.00 6.45 - - 6.45 6.4 ging MT 40 6024000 45 27.11 0-27.11 27.1 711.83 - - 711.83 711.8 Cost Land Area in Sq Mtrs 260,000 260,000 260,000 260,000 260,00 Lease Rent 15 15 15 15 Total Cost 0.39 0.39 0.39 0. Page 1 of 2

es Nos of People Rs in Lacs Operational Staff 25 36 Labour S/US/SS 24 3 Administrative 14 18 Other Benefits 11 Yearly Exclation 5.00% 68 0.68 0.7 enance Cost 6.00 6.00 6.00 6.0 g and Adminis Credit Interest 20 20 20 f Interest 12% 2.4 2.4 2.4 2 Page 2 of 2

SES PMB Const 1 Const 2 3 4 led Capacity 360000 360000 360000 of Capacity Utilization 70% 90% tional Capacity 324000 252000 324000 Nos of Days/p.a tional Running Time 300 7200 7200 Raw Materials Requirement /Mt 70 Bitumen MT 0.94 304560 212 15359.4 467.79 0 0 236880 304560 - - 363.83 467.79 ers SBS 1 / SBS2 Kgs 0.06 19440 1615 113050 219.77 0 0 15120 19440 es - - 170.93 219.77 Electricity Mwh 0.009 2916 1,450.00 0.42 0 0 2268 2916 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 ging MT 7 1,963,636.36 0 0 1,527,273 1,963,636 es Electricity Mwh 0.009 2916 1,450.00 0.42 - - 0.33 0.42 IP Steam MT - - - - Demin Water M3 - - - - Nitrogen Nm3 - - - - Raw Water Ltr - - - - Fuel Gas GJ - - - - ging MT 7 1,963,636.36 250 49.09 0-38.18 49.09 737.07 - - 573.28 737.07 Cost Land Area in Sq Mtrs 260,000 260,000 260,000 260,000 260,000 Lease Rent 15 15 15 15 15 Total Cost 0.39 0.39 0.39 0.39 Page 1 of 2

es Nos of People Rs in Lacs Operational Staff 5 7.5 Labour S/US/SS 10 1.25 Administrative 1 0.5 Other Benefits 2 Yearly Exclation 5.00% 11.25 0.11 0.16 enance Cost 0.50 0.50 g and Adminis 0.25 0.25 Credit Interest f Interest 12% 0 0 0 0 Page 2 of 2

Expenses - Gas Terminal Year Const 1 Const Installed Capacity (CBM) 25,000.00 %age of Capacity Utilization Operational Capacity(CBM) 25,000.00 Operational Capacity(MT) 12,750.00 Nos of Days/p.a Operational Running Time 365 Utilities for storage of 12,750 MT per day Cost/Kwh Value/ Month Value/ Year Electricity Kwh 2880 5.60 30 483,840.00 5,806,080.00 for average purging 4 times per month Cost/ Nm3 Value /Month Nitrogen Nm3 100.2 3.00 4 1,202.40 14,428.80 Total 5,820,508.80 Total in Lacs 58.21 Salaries Nos of People Rs in Lacs Operational Staff 4 10.00 10.00 Labour S/US/SS 12 21.60 21.60 Administrative 2 6.00 6.00 Other Benefits 4.00 4.00 Yearly Increment 5% Grand Total 99.81 Maintenance Cost 0.60 Selling and Adminis 6.00 Cash Credit Interest Rate of Interest 12% 0

Revenue Model PVC Const 1 Const 2 3 4 5 Sales Installed Capacity MTS 150000 150000 150000 1 Operational Capacity MTS 0 0 150000 150000 150000 1 Local %age of Sales 100 MTS 0 0 150000 150000 150000 1 Export %age of Sales 0 MTS 0 0 0 0 0 Selling Price in US$ Local US$ 855 855 855 Exchange Rate 70 70 70 Price in INR INR 0 0 59850 59850 59850 Selling Price in US$ Export US$ 775 775 775 Exchange Rate 0 0 70 70 70 Price in INR INR 0 0 54250 54250 54250 Sales Turnover Local Rs in Crs 0 0 897.75 897.75 897.75 8 Export Rs in Crs 0 0 0 0 0 Total Turnover 0 0 897.75 897.75 897.75 8

Revenue Model- PMB Const 1 Const 2 3 4 5 6 Sales Installed Capacity MTS 360,000 360,000 360,000 360,000 360 75 90 90 90 Operational Capacity MTS 0 0 270,000 324,000 324,000 324,000 324 Local %age of Sales 100 MTS 0 0 270,000 324,000 324,000 324,000 324 Export %age of Sales 0 MTS 0 0 - - - - Selling Price in US$ Local US$ 345 370.88 408 420.20 Exchange Rate 70 70 70 70 Price in INR INR 0 0 24,150 25,961 28,557 29,414 31 Selling Price in US$ Export US$ Exchange Rate 0 0 70 70 70 70 Price in INR INR 0 0 - - - - Sales Turnover Local Rs in Crs 0 0 652 841 925 953 1 Export Rs in Crs 0 0 0 0 0 0 Total Turnover 0 0 652 841 925 953 1

Revenue Model - Gas Terminal Const 1 Const 2 3 4 5 Sales Installed Capacity CBM 25,000.00 25,000.00 25,000.00 Operational Capacity MTs 12,750 12,750 12,750 75 90 90 Operational Capacity MTS 0 0 9,563 11,475 11,475 Storage Charges in INR PMT INR 1500 28,687,500 34,425,000 34,425,000 Sales Turnover Local Rs in Crs 2.87 3.44 3.44

Project Profitibility Statement - PVC Particulars 1 2 3 4 5 6 7 Revenue Sales - PVC - - 897.75 897.75 897.75 897.75 897.75 Other Income - - 8.98 8.98 8.98 8.98 8.98 Total Income - - 906.73 906.73 906.73 906.73 906.73 Expenditure Opening Stock of RM RM Stock - - - 29.45 26.85 26.85 26.85 FG Stock - - - 36.89 36.89 36.89 36.89 Add Raw Material Cost - - 716.67 653.35 653.35 653.35 653.35 Less Closing Stock RM Stock - - 29.45 26.85 26.85 26.85 26.85 FG Stock - - 36.89 36.89 36.89 36.89 36.89 - - 650.33 655.96 653.35 653.35 653.35 Power Cost - - 5.66 5.66 5.66 5.66 5.66 Other Utilities - - 25.72 25.72 25.72 25.72 25.72 Packaging Cost - - 27.11 27.11 27.11 27.11 27.11 Cost of Goods Sold - - 708.81 714.44 711.83 711.83 711.83 Salaries / Wages Cost 0.68 0.73 0.78 0.83 0.88 Lease Rentals 0.39 0.39 0.39 0.39 0.39 Maintenance Cost 6.00 6.00 6.00 6.00 6.00 Selling and Admin Cost 2.00 2.00 2.00 2.00 2.00 EBIDTA - - 188.85 183.17 185.72 185.67 185.62 EBIDTA %age to Sales 20.83% 20.20% 20.48% 20.48% 20.47% Depreciation 53.50 53.50 53.50 53.50 53.50 Interest Cost TL 61.75 69.65 49.51 29.37 9.23 Interest Cost CC 2.40 2.40 2.40 2.40 2.40 Gross Profit - - 71.21 57.63 80.32 100.41 120.50 Gp %age to Sales 7.85% 6.36% 8.86% 11.07% 13.29% Tax - - 21.36 17.29 24.10 30.12 36.15 Net profit - - 49.85 40.34 56.22 70.29 84.35 5.50% 4.45% 6.20% 7.75% 9.30%

Project Profitibility Statement - PVC Particulars 1 2 3 4 5 6 7 Cash Profit 103.34 93.84 109.72 123.78 137.84 568.52 Repayment of T/L 1 2 3 4 5 6 7 - (30.07) (137.62) (229.29) (306.89) 103.34 93.84 109.72 123.78 137.84 133.41 201.38 201.38 201.38 201.38 (30.07) (137.62) (229.29) (306.89) (370.43)

Project Profitibility Statement - PMB Particulars 1 2 3 4 5 6 7 Revenue Sales - PVC - - 652.05 841.14 925.26 953.02 1,019.73 Other Income - - 3.26 4.21 4.63 4.77 5.10 Total Income - - 655.31 845.35 929.89 957.78 1,024.83 Expenditure Opening Stock of RM RM Stock - - - 23.00 28.26 29.70 30.18 FG Stock - - - 26.80 34.57 38.02 39.17 Add Raw Material Cost - - 559.77 687.56 722.64 734.33 804.50 Less Closing Stock RM Stock - - 23.00 28.26 29.70 30.18 33.06 FG Stock - - 26.80 34.57 38.02 39.17 41.91 - - 509.96 674.53 717.74 732.71 798.88 Power Cost - - 0.33 0.42 0.42 0.42 0.42 Other Utilities - - Packaging Cost - - 38.18 49.09 54.00 54.00 56.45 Cost of Goods Sold - - 548.48 724.05 772.16 787.14 855.75 Salaries / Wages Cost 0.11 0.16 0.21 0.26 0.31 Lease Rentals Maintenance Cost 0.50 0.50 0.55 0.55 0.61 Selling and Admin Cost 0.25 0.25 0.28 0.28 0.30 EBIDTA - - 105.97 120.39 156.68 169.56 167.85 EBIDTA %age to Sales 16.17% 14.24% 16.85% 17.70% 16.38% Depreciation 2.33 2.33 2.33 2.33 2.33 Interest Cost TL Interest Cost CC Gross Profit - - 103.65 118.06 154.36 167.23 165.53 Gp %age to Sales 15.82% 13.97% 16.60% 17.46% 16.15% Tax - - 31.09 35.42 46.31 50.17 49.66 Net profit - - 72.55 82.64 108.05 117.06 115.87 11.07% 9.78% 11.62% 12.22% 11.31%

Project Profitibility Statement - PMB Particulars 1 2 3 4 5 6 7 Cash Profit 74.88 84.97 110.38 119.39 118.20 507.81 Repayment of T/L 1 2 3 4 5 6 7 - (58.53) (174.95) (265.95) (347.95) 74.88 84.97 110.38 119.39 118.20 133.41 201.38 201.38 201.38 201.38 (58.53) (174.95) (265.95) (347.95) (431.14)

Project Profitibility Statement - PMB Particulars 1 2 3 4 5 6 7 Revenue Sales - PVC - - 652.05 841.14 925.26 953.02 1,019.73 Other Income - - 3.26 4.21 4.63 4.77 5.10 Total Income - - 655.31 845.35 929.89 957.78 1,024.83 Expenditure Opening Stock of RM RM Stock - - - 23.00 28.26 29.70 30.18 FG Stock - - - 26.80 34.57 38.02 39.17 Add Raw Material Cost - - 559.77 687.56 722.64 734.33 804.50 Less Closing Stock RM Stock - - 23.00 28.26 29.70 30.18 33.06 FG Stock - - 26.80 34.57 38.02 39.17 41.91 - - 509.96 674.53 717.74 732.71 798.88 Power Cost - - 0.33 0.42 0.42 0.42 0.42 Other Utilities - - Packaging Cost - - 38.18 49.09 54.00 54.00 56.45 Cost of Goods Sold - - 548.48 724.05 772.16 787.14 855.75 Salaries / Wages Cost 0.11 0.16 0.21 0.26 0.31 Lease Rentals Maintenance Cost 0.50 0.50 0.55 0.55 0.61 Selling and Admin Cost 0.25 0.25 0.28 0.28 0.30 EBIDTA - - 105.97 120.39 156.68 169.56 167.85 EBIDTA %age to Sales 16.17% 14.24% 16.85% 17.70% 16.38% Depreciation 2.33 2.33 2.33 2.33 2.33 Interest Cost TL Interest Cost CC Gross Profit - - 103.65 118.06 154.36 167.23 165.53 Gp %age to Sales 15.82% 13.97% 16.60% 17.46% 16.15% Tax - - 31.09 35.42 46.31 50.17 49.66 Net profit - - 72.55 82.64 108.05 117.06 115.87 11.07% 9.78% 11.62% 12.22% 11.31%

Project Profitibility Statement - PMB Particulars 1 2 3 4 5 6 7 Cash Profit 74.88 84.97 110.38 119.39 118.20 507.81 Repayment of T/L 1 2 3 4 5 6 7 - (58.53) (174.95) (265.95) (347.95) 74.88 84.97 110.38 119.39 118.20 133.41 201.38 201.38 201.38 201.38 (58.53) (174.95) (265.95) (347.95) (431.14)

Gas Terminal Project Profitibility Statement Particulars 1 2 3 4 5 6 7 Revenue Sales - PVC 2.87 3.44 3.44 3.44 3.44 Other Income Total Income - - 2.87 3.44 3.44 3.44 3.44 Expenditure Opening Stock of RM RM Stock FG Stock Add Raw Material Cost Less Closing Stock RM Stock - - - - - - - FG Stock - - - - - - - - - Power Cost 0.58 0.58 0.58 0.58 0.58 Other Utilities 0.00 0.00 0.00 0.00 0.00 Packaging Cost Cost of Goods Sold - - 0.58 0.58 0.58 0.58 0.58 Salaries / Wages Cost 1.00 1.05 1.10 1.15 1.20 Lease Rentals Maintenance Cost 0.06 0.06 0.06 0.06 0.06 Selling and Admin Cost EBIDTA - - 1.23 1.75 1.70 1.65 1.60 EBIDTA %age to Sales 42.83% 50.90% 49.45% 48.00% 46.55% Depreciation Interest Cost TL Interest Cost CC Gross Profit - - 1.23 1.75 1.70 1.65 1.60 Gp %age to Sales 42.83% 50.90% 49.45% 48.00% 46.55% Tax - - 0.37 0.53 0.51 0.50 0.48 Net profit - - 0.86 1.23 1.19 1.16 1.12 29.98% 35.63% 34.62% 33.60% 32.58%

Gas Terminal Project Profitibility Statement Particulars 1 2 3 4 5 6 7 Cash Profit 0.86 1.23 1.19 1.16 1.12 5.56 Repayment of T/L 1 2 3 4 5 6 7 - (132.55) (332.71) (532.90) (733.13) 0.86 1.23 1.19 1.16 1.12 133.41 201.38 201.38 201.38 201.38 (132.55) (332.71) (532.90) (733.13) (933.39)

Project Profitibility Statement Particulars 1 2 3 4 5 6 7 Revenue Sales - PVC - - 897.75 897.75 897.75 897.75 897.75 Sales - Pmb 652.05 841.14 925.26 953.02 1,019.73 Revenue Gas Terminal 2.87 3.44 3.44 3.44 3.44 Other Income - - 12.24 13.18 13.60 13.74 14.08 Total Income - - 1,564.91 1,755.52 1,840.06 1,867.95 1,935.00 Expenditure Opening Stock of RM RM Stock - - - 52.46 55.11 56.55 57.03 FG Stock - - - 63.69 71.46 74.92 76.06 Add Raw Material Cost - - 1,276.44 1,340.91 1,375.99 1,387.69 1,457.86 Less Closing Stock RM Stock - - 52.46 55.11 56.55 57.03 59.91 FG Stock - - 63.69 71.46 74.92 76.06 78.80 - - 1,160.29 1,330.49 1,371.10 1,386.07 1,452.23 Power Cost - - 6.56 6.66 6.66 6.66 6.66 Other Utilities - - 25.72 25.72 25.72 25.72 25.72 Packaging Cost - - 65.29 76.20 81.11 81.11 83.56 Cost of Goods Sold - - 1,257.87 1,439.07 1,484.58 1,499.55 1,568.17 Salaries / Wages Cost 1.79 1.94 2.09 2.24 2.39 Lease Rentals 0.39 0.39 0.39 0.39 0.39 Maintenance Cost 6.56 6.56 6.61 6.61 6.67 Selling and Admin Cost 2.25 2.25 2.28 2.28 2.30 EBIDTA - - 296.05 305.31 344.11 356.88 355.08 EBIDTA %age to Sales 18.92% 17.39% 18.70% 19.11% 18.35% Depreciation 55.82 55.82 55.82 55.82 55.82 Interest Cost TL 61.75 69.65 49.51 29.37 9.23 Interest Cost CC 2.40 2.40 2.40 2.40 2.40 Gross Profit - - 176.08 177.45 236.38 269.29 287.62 Gp %age to Sales 11.25% 10.11% 12.85% 14.42% 14.86% Tax - - 52.82 53.23 70.91 80.79 86.29 Net profit - - 123.26 124.21 165.47 188.50 201.34

Project Profitibility Statement Particulars 1 2 3 4 5 6 7 7.88% 7.08% 8.99% 10.09% 10.41% Cash Profit 179.08 180.04 221.29 244.33 257.16 1,081.89 Repayment of T/L 1 2 3 4 5 6 7-45.67 24.32 44.22 87.17 179.08 180.04 221.29 244.33 257.16 133.41 201.38 201.38 201.38 201.38 45.67 24.32 44.22 87.17 142.94

Projected Balance Sheet 0.01 0.02 0.02 0.03 0.05 Const 1 Const 2 1 2 3 4 5 Current Assets Cash & Cash Equivalent 14.53 2.77 2.78 44.11 99.28 RM Stock 52.46 55.11 56.55 57.03 59.91 FG Stock 63.69 71.46 74.92 76.06 78.80 Current Liabilities 85.00 105.00 90.00 90.00 95.00 Net Current Assets - - 45.68 24.34 44.25 87.20 142.99 Gross Block 731.70 1,236.69 1,236.69 1,236.69 1,236.69 1,236.69 1,236.69 Provision for Depreciation 55.82 111.65 167.47 223.29 279.11 Net Block 731.70 1,236.69 1,180.87 1,125.05 1,069.22 1,013.40 957.58 Total Assets 731.70 1,236.69 1,226.55 1,149.38 1,113.47 1,100.60 1,100.57 Share Capital Paid Up Capital 153.43 297.74 297.74 297.74 297.74 297.74 297.74 Reserves & Surplus - - 123.26 247.47 412.94 601.44 802.78 Net Worth 153.43 297.74 421.00 545.21 710.68 899.18 1,100.52 Secured Debt 578.27 938.95 805.54 604.15 402.77 201.38 (0.00) Total Liabilities 731.70 1,236.69 1,226.54 1,149.36 1,113.45 1,100.57 1,100.52 Difference - - 0.01 0.02 0.02 0.03 0.05

Projected Cash Flow Particulars Const 1 Const 2 1 2 3 4 5 Net Profit 123.26 124.21 165.47 188.50 201.34 Add: Non-Cash expenses Depreciation 55.82 55.82 55.82 55.82 55.82 Interest Cash Flow from Operating activities before change in working capital 179.08 180.04 221.29 244.33 257.16 Changes in Working Capital Increase/decrease in current liabilities (31.15) 9.58 (19.90) (1.62) (0.63) Cash Flow from Operating Activities after change in working capital 147.93 189.61 201.39 242.71 256.54 Cash Flow from Investing Activities Increase in Capital Assets (731.70) (504.99) - - - - - Decrease in Capital Assets Net Cash flows from Investing Activities (731.70) (504.99) - - - - - Cash Flow from Financing Activities Increase in Equity 153.43 144.31 Increase in Debt 578.27 360.68 Increase in Debt - on account of IDC Principal Paid (133.41) (201.38) (201.38) (201.38) (201.38) Net Cash Flow from Financing Activities 731.70 504.99 (133.41) (201.38) (201.38) (201.38) (201.38) Net Changes in Cash inflow/outflows - - 14.52 (11.77) 0.01 41.32 55.15 Cash at the beginning of the year - - - 14.53 2.77 2.78 44.11 Cash at the end of the year - - 14.53 2.77 2.78 44.11 99.28 Working of Cash Flow - - - - 14.52 14.53 2.76 2.77 2.78 2.78 44.10 44.11 99.26 99.28 Difference - - (0.01) (0.01) (0.00) (0.01) (0.02)

Term Loan - Availment and Re-Payment Opening Receipt Payment Closing Rate of Int - 10 Yrs 1 1 - - - - 2-29.95 29.95 0.25 3 29.95 29.95 0.25 4 29.95 15.00 44.95 0.37 5 44.95 44.95 0.37 6 44.95 17.00 61.95 0.52 7 61.95 61.95 0.52 8 61.95 38.52 100.47 0.84 9 100.47 100.47 0.84 10 100.47 25.00 125.47 1.05 11 125.47 31.92 157.39 1.31 12 157.39 149.00 306.39 2.55 8.87 2 1 306.39 306.39 2.55 2 306.39 57.52 363.91 3.03 3 363.91 363.91 3.03 4 363.91 161.12 525.03 4.38 5 525.03 525.03 4.38 6 525.03 13.51 538.54 4.49 7 538.54 13.51 552.05 4.60 8 552.05 101.51 653.56 5.45 9 653.56 13.51 667.07 5.56 10 667.07 667.07 5.56 11 667.07 667.07 5.56 12 667.07 667.07 5.56 54.14 3 1 667.07 11.12 655.95 5.47 2 655.95 11.12 644.83 5.37 3 644.83 11.12 633.72 5.28 4 633.72 11.12 622.60 5.19 5 622.60 11.12 611.48 5.10 6 611.48 11.12 600.36 5.00 7 600.36 11.12 589.25 4.91 8 589.25 11.12 578.13 4.82 9 578.13 11.12 567.01 4.73 10 567.01 11.12 555.89 4.63 11 555.89 11.12 544.77 4.54 12 544.77 271.88 11.12 805.54 6.71 61.75 133.41 4 1 805.54 16.78 788.75 6.57 2 788.75 16.78 771.97 6.43 3 771.97 16.78 755.19 6.29 4 755.19 16.78 738.41 6.15 5 738.41 16.78 721.63 6.01 6 721.63 16.78 704.84 5.87 7 704.84 16.78 688.06 5.73 8 688.06 16.78 671.28 5.59 9 671.28 16.78 654.50 5.45 10 654.50 16.78 637.72 5.31 11 637.72 16.78 620.93 5.17 12 620.93 16.78 604.15 5.03 69.65 201.38 5 1 604.15 16.78 587.37 4.89

Term Loan - Availment and Re-Payment Opening Receipt Payment Closing Rate of Int 2 587.37 16.78 570.59 4.75 3 570.59 16.78 553.81 4.62 4 553.81 16.78 537.02 4.48 5 537.02 16.78 520.24 4.34 6 520.24 16.78 503.46 4.20 7 503.46 16.78 486.68 4.06 8 486.68 16.78 469.90 3.92 9 469.90 16.78 453.11 3.78 10 453.11 16.78 436.33 3.64 11 436.33 16.78 419.55 3.50 12 419.55 16.78 402.77 3.36 49.51 201.38 6 1 402.77 16.78 385.99 3.22 2 385.99 16.78 369.20 3.08 3 369.20 16.78 352.42 2.94 4 352.42 16.78 335.64 2.80 5 335.64 16.78 318.86 2.66 6 318.86 16.78 302.08 2.52 7 302.08 16.78 285.29 2.38 8 285.29 16.78 268.51 2.24 9 268.51 16.78 251.73 2.10 10 251.73 16.78 234.95 1.96 11 234.95 16.78 218.17 1.82 12 218.17 16.78 201.38 1.68 29.37 201.38 7 1 201.38 16.78 184.60 1.54 2 184.60 16.78 167.82 1.40 3 167.82 16.78 151.04 1.26 4 151.04 16.78 134.26 1.12 5 134.26 16.78 117.47 0.98 6 117.47 16.78 100.69 0.84 7 100.69 16.78 83.91 0.70 8 83.91 16.78 67.13 0.56 9 67.13 16.78 50.35 0.42 10 50.35 16.78 33.56 0.28 11 33.56 16.78 16.78 0.14 12 16.78 16.78 (0.00) (0.00) 9.23 201.38 938.95 282.50 938.95

Debt Service Coverage Ratio (DSCR) PARTICULARS Const 1 Const 1 1 2 3 4 5 Flag for DSCR EBT - - 176.08 177.45 236.38 269.29 287.62 Depreciation & Expenses Written Off - - 55.82 55.82 55.82 55.82 55.82 Interest - - 64.15 72.05 51.91 31.77 11.63 Total - - 296.05 305.31 344.11 356.88 355.08 Repayment - - 133.41 201.38 201.38 201.38 201.38 Interest - - 64.15 72.05 51.91 31.77 11.63 Total Senior Servicing - - 197.56 273.43 253.29 233.15 213.01 DSCR Debt 1.50 1.12 1.36 1.53 1.67 Average DSCR 1.43 Fixed Asset Coverage Ratio (FACR) PARTICULARS Const 1 Const 1 1 2 3 4 5 Net Fixed Assets 1,180.87 1,125.05 1,069.22 1,013.40 957.58 Term Loan 805.54 604.15 402.77 201.38 FACR 1.47 1.86 2.65 5.03 Min FACR 1.47 Return on Equity PARTICULARS Const 1 Const 1 1 2 3 4 5 EBIT - - 240.23 249.49 288.29 301.06 299.25 Average Caital Employed 359.37 483.11 627.94 804.93 999.85 Return on Capital Employed 67% 52% 46% 37% 30% Debt-Equity PARTICULARS Const 1 Const 1 1 2 3 4 5 Debt 805.54 604.15 402.77 201.38 (0.00) Equity 421.00 545.21 710.68 899.18 1,100.52 Debt/Equity Ratio 1.91 1.11 0.57 0.22 (0.00)

PAY BACK PERIOD CASH FLOW STATEMENT Years 1 2 3 4 5 6 7 Investment (732) (1,237) (1,237) (1,237) (1,237) (1,237) (1,237) EBIT 240.23 249.49 288.29 301.06 299.25 Depreciation 55.82 55.82 55.82 55.82 55.82 Cashflow - - 296 305 344 357 355 Cumulative Cashflow (731.7) (1,236.7) (940.6) (635.3) (291.2) 65.7 420.74 PAY BACK PERIOD 6 Years INTERNAL RATE OF RETURN- PROJECT CASH FLOW STATEMENT Years 1 2 3 4 5 6 7 Investment Terminal value (731.70) (504.99) - Cashflow - - 296 305 344 357 355 Cumulative Cashflow (731.70) (504.99) 296.05 305 344 357 355 IRR 8% INTERNAL RATE OF RETURN- EQUITY Terminal Year CASH FLOW STATEMENT Years 1 2 3 4 5 6 7 Investment (298) Project Cash Flow Repayments of Debt Terminal Value Cashflow (298) - 98 32 91 124 142 296 198 305 273 344 253 357 233 355 213 IRR 12%

ESTIMATED PERSONNEL-MANPOWER COST FOR PVC PLANT S.No.Particulars Nos. Amount per month A Factory Workforce Lacs /mth Rs./Lacs Project Manager/ AGM 3.00 1 3.00 General Manager Plant (next promotion- VP) 4.00 1 4.00 Civil Engineer (Manager Civil) 3.00 1 3.00 Mechnical Engineers (Manager maintenance) 2.00 1 2.00 B C Mechnical Engineers (Asst. Manager maintenance) 1.00 1 1.00 Mechanical Engineers 0.60 2 1.20 Electrical Engineer (Manager Electricals) 3.00 1 3.00 Electrical Engineers 0.60 2 1.20 Process /Chemical Engineer (Manager- Process) 3.00 1 3.00 Process /Chemical Engineers 1.00 3 3.00 Manager Instrumentation 3.00 1 3.00 Instrumentation Engineers 1.00 3 3.00 Plant Operators 0.75 6 4.50 Manager Safety 1.00 1 1.00 Manager Quality Assurance 2.00 1 2.00 Manager Laboratory 2.00 1 2.00 Laboratory Analysts 0.35 4 1.40 Total 26.95 25 35.90 Administrative Chief Excecutive Officer 5.00 1 5.00 Chief Marketing manager 3.00 1 3.00 Deputy Marketing manager 2.00 1 2.00 Marketing Executives/ Product Executives 0.80 4 3.20 Manager Logistic 1.00 1 1.00 Manager Purchase 2.00 1 2.00 Manager HR 1.00 1 1.00 Accountant 0.30 1 0.30 Executives including Stores Incharge 0.25 3 0.75 Total 15.35 14 18.25 Labour Skilled Workers 0.15 10 1.50 Unskilled Workers 0.09 10 0.90 Watch Men 0.12 4 0.48 Total 0.36 24 2.88 Total 42.66 63 57.03 Add benefits 11.41 Total Monthly salary bill 68.44 Total (Annual) Rs. (Cr) 821.23 % of T/O 8.30

CHAPTER 10 PROJECT SCHEDULE

Sr. No. Task Name VERITAS POLYCHEM PVT LTD PROJECT MILESTONES 1 Project Start 2 Pre construction statutory approvals 8 Receipt of Inputs, Procurement and detailed Engineering 3 PVC Plant Detailed Engineering 16 4 VCM, LPG & Propylene Gas Storage Bullets 16 5 Tanker Loading facility for LPG/ Propylene including pumps 8 6 PMB Plant / Storage tanks for Bitumen & PMB etc. 12 6 PMB drumming facility 8 7 Utilities like, N2 Plant, Compressor, Chiller etc 12 7 Marine loading arms and Jetty to Plant piping 9 8 Captive Power Plant 11 8 Heat Recovery Boiler and Process Boiler 6 9 ETP 9 9 Automation of Plant 10 10 Miscellenious like Lab, Admin building, control room etc 10 Cross Country pipeline (Sea water Intake and Pipeline from 10 Kudki dam) 10 11 Finalisation of Contractors 12 Construction activities 12 Land Development and compound wall 6 13 PVC Plant 20 14 VCM, LPG & Propylene Gas Storage Bullets 20 15 Tanker Loading facility for LPG/ Propylene including pumps 10 16 PMB Plant / Storage tanks for Bitumen & PMB etc. 14 17 PMB drumming facility 10 18 Utilities like, N2 Plant, Compressor, etc 12 19 Marine loading arms and Jetty to Plant piping 10 20 Captive Power Plant 10 21 Heat Recovery Boiler and Process Boiler 10 22 ETP 12 Cross Country pipeline (Sea water Intake and Pipeline from 23 Kudki dam) 14 24 Miscellenious like Lab, Admin building, roads, drains etc 16 25 Plant Automation 13 26 Pre commissioning 3 27 Commissioning 3 28 Project Hand over to Client 1 Master Sch Duration in Months 1 2 3 4 5

ANNEXURES

PLOT PLAN

PROCESS FLOW DIAGRAM