Revenue Fore Casting

A REPORT ON INTERNSHIP TRAININGUndergone at

NISSAN ASHOK LEYLAND POWERTRAIN LTD.For the partial fulfillment of the requirement of

MASTER OF BUSINESS ADMINISTRATION DEGREESubmitted by Mr.DIVAKAR.R Register No.10230112

SCHOOL OF MANAGEMENT D.G.VAISHNAV COLLEGE CHENNAI-600106 2010-2012

A REPORT ON INTERNSHIP TRAININGUndergone at

NISSAN ASHOK LEYLAND POWERTRAIN LTD.For the partial fulfillment of the requirement of

MASTER OF BUSINESS ADMINISTRATION DEGREESubmitted by Mr.DIVAKAR.R Register No.10230112

SCHOOL OF MANAGEMENT D.G.VAISHNAV COLLEGE CHENNAI-600106 2010-2012

CERTIFICATEThis is to certify that this Internship training report is submitted by Mr.DIVAKAR.R a bonafide student of First year, Master of Business Administration, School of Management, D.G.Vaishnav College, Chennai-600106 who had undergone training at NISSAN ASHOK LEYLAND POWERTRAIN LTD from 02nd May 2011 to 31st may 2011 in Partial fulfillment of the requirement for the degree of Master of Business Administration

(Mr.V.GANESHAN) Faculty in Charge

College seal

ACKNOWLEDGEMENT

I extend my sincere thanks to Mr.V.GANESHAN, DEAN, School of Management. D G Vaishnav College, Arumbakkam, CHENNAI, for having given me an opportunity to undergo the Institutional training at NISSAN ASHOK LEYLAND POWERTRAIN LTD.

I express my heartfelt thanks to Dr. (Mrs.) ASHWINI RAVI, DIRECTOR School of Management. D G Vaishnav College, Arumbakkam,CHENNAI, for her kind co-operation, Invaluable guidance and More over Personal care for the completion of my report successfully. I also thanks MR.V.A.JEROLD and other Lectures of the department for their consistent Guidance.

I would be failing in my duty if I do not express my sincere thanks to my Parents, I also thanks my Mentor Mr.S.PRADEEP KUMAR, and the staff of NISSAN ASHOK LEYLAND POWERTRAIN LTD for providing all facilities to complete the training successfully.

DATE:

PLACE: Chennai

(DIVAKAR.R)

CONTENTSCHAPTER NO PARTICULARS PAGE NO

1

INDUSTRY INTRODUCTION & COMPANY INTODUCTION

1-16

2

ORGANISATION CHART & PRODUCT PROFILE

17-24

3

FINANCIAL PERFORMANCE ANANLYSIS

25-31

4

PRODUCT PRICING SKILL & PROFITABILTY ESTIMATION

32-65

5

FINANCE DEPARTMENTPROFITABILITY

66-76

6

CONCLUSION INDUSTRY INTRODUCTION 77-81 & COMPANY INTODUCTION ANNEXURES 82-85

Chapter No: 1 Industry Introduction & Company Introduction

INDUSTRY INTRODUCTION

The truck was first manufactured in 1896 by Daimler. This truck had a four hp two-cylinder 1.1 liter engine. In 1898 the Winton Company in USA produced a gasoline-powered delivery wagon which had a single-cylinder six-horsepower engine fitted into it. The idea of using automobiles to carry freight around had not become popular yet. Absence of good roads and inability of these automotives to run at high speeds were the reasons why trucks were not very popular. Daimler made certain changes to the design of the truck engine. He increased horse power of the engine from 4 HP to 10 HP thereby enabling the truck to carry payloads as high as 5,000 kilograms. Engine capacity too had been enhanced to 2.2 liters. The earliest Truck Engines ran on gasoline. They were not very powerful machines. Trucks faced a lot more criticism as compared to passenger cars. However, World War I changed everything. Trucks proved to be invaluable in transporting large number of troops and large quantities of supplies in a single run. After this war, trucks became an integral part of the movement of men and materials in a war.

This led to more innovation in the field of truck engines. In 1923, the first truck with diesel engine was made by different manufacturers including Benz and Daimler. In 1924, trucks fitted with diesel engines were made available for commercial use. It took diesel engines three more decades to become the primary choice for all those purchasing a truck engine. Truck diesel engines retain its popularity even today. Diesel has always been cheaper than gasoline. It has replaced paraffin and other fuels and diesel truck engines are the most popular engines in the market today.

Today, finding the best truck engines for your high power truck is not an easy task. Whether you are buying a brand new truck engine or used truck engine for sale, you have to give due regard to the history of the manufacturer and the manufacturer's reputation in the market. Different truck manufacturers focus on different types of truck engines. Make sure you are aware of these things before taking a final decision. There are many websites offer detailed information on trucks, truck engines and truck engine parts on the web. www.automotix.net is one of the best sites offering detailed information.

COMPANY INTRODUCTION

Ashok Leyland is one of the largest manufacturers of commercial vehicles and Diesel engines in India. Ashok Leyland is the leading manufacturer of trucks, buses, special application vehicles and engines in India. The products of Ashok Leyland are at par with the best in the world. Ashok Leyland is the leaders in the Indian bus market, offering unique models such as CNG, Double Decker and Vestibule bus. More than 80% of the State Transport Undertaking (STU) buses come from Ashok Leyland. The company is a pioneer in multi axle trucks and tractor-trailers. Ashok Leyland is the largest provider of logistic vehicles to the Indian army. It also manufactures diesel engines for Industrial, Genset and Marine applications, in collaboration with technology leaders.

Ashok Leyland was launched by Mr. Raghunandan Saran, an industrialist, under the persuasion of Pandit Jawaharlal Nehru. In 1948, Ashok Motors was set

up in Madras (Chennai) for the assembly of Austin Cars. Soon, British Leyland acquired an equity stake in the company and the name of the company was changed from Ashok Motors to Ashok Leyland. In 1955, Ashok Leyland commenced of commercial vehicles. Since then Ashok Leyland has maintained its technological leadership in the India's commercial vehicle industry.

Ashok Leyland was the first to introduce full air brakes, power steering and rear engine busses in India. In 1987, the overseas holding by Land Rover Leyland International Holdings Limited (LRLIH) was taken over by a joint venture between the Hinduja Group and IVECO, a fully owned subsidiary of FIAT. Since July 2006, the Hinduja Group is 100% holder of LRLIH.

Mission, Vision and Values:Vision:

Be among the top Indian Corporations acknowledged nationally and internationally for Excellence in Quality of its products Excellence in Customer focus and Service Mission: Be a Leader in the business of the commercial vehicles, excelling in technology, Quality, Value to customer, fully supported by customer service of the highest order and meeting national and international environmental and safety standards.

Values:

Customers: We value our customers and will constantly Endeavour to fulfill their needs by proactively offering them products and service appropriate to their diverse applications.

Employees: We consider our employees as our most valuable asset and are committed to provide full encouragement and support to them to enhance their potential and contribution to the companys business.

Vendors:

Our vendors are our valued partners in our business development and we will work with them in a spirit of mutual co-operation to meet our business objectives.

Distributors: Our distributors are the vital link between the company and the customers and we are committed to advise and support our distributors to continuously upgrade their infrastructure, skills and capabilities to serve our customers better.

Shareholders: We value the trust reposed in us by our shareholders and strive unstintingly to ensure a fair and reasonable return on their investment.

Society: We are committed to add to the wealth and well-being of our society by enhancing the quality of life and contributing to its economic development while maintaining the highest level of environmental and safety standards.

A. Ashok Leylands Units or Factories i.Ennore ii.Hosur iii.Bhandara iv.Alwar

Ashok Leyland Plants

b. Products & Solutions

c. Associate Companies 1. Automotive Coaches & Components Ltd (ACCL): ACCL was promoted by Ashok Leyland and the Tamil Nadu Industrial Development Corporation (TIDCO) in the 1980s. The company has two Divisions: ACCL Division and PL Haulwel Trailers (PLHT). ACCL is the largest Tipper Body manufacturer in the organised sector in India. Apart from the tippers, it also manufactures bus bodies, front-end structures (FES), tankers, aluminum containers, OB vans, energy vans and the like. PLHT manufactures a wide variety of after-chassis products. These include Fifth Wheel Couplers and Hoists, Semi Trailers, Container trailers, Ladle Carriers, for foundries (Steel / Aluminum), Running gears for LPG tankers, Car / Truck / Tractor Carriers, Bottom dumpers, and all types of user-specific customdesigned trailers for niche applications.

2. Lanka Ashok Leyland: The Company was established in 1982. It is a joint venture between Ashok Leyland and the Government of Sri Lanka. Ashok Leyland supplies chassis in both completely built-up and knocked down conditions to Lanka Ashok Leyland, which in turn assembles the chassis and builds bodies.

3. Ennore Foundries: Ennore Foundries was established in 1959. It is India's largest automotive jobbing foundry and caters to different segment like automobiles, tractors, industrial engines and power generators.

4. IRIZAR-TVS: IRIZAR-TVS is a joint venture between Ashok Leyland, TVS & Sons Ltd and IRIZAR, the internationally reputed bus body builder from Spain. The company was started in 2001 and it manufactures luxury coaches. 5. Ashok Leyland Project Services Limited: Ashok Leyland Project Services Limited (ALPS) looks after the project development activities of the Hinduja Group in India. It assists the investment entities of the Group and provides professional services to help international companies interested in projects in India.

1. NissanNissan Motor Company, Limited,, shortened to Nissan is a multinational automaker headquartered in Japan. It formerly marketed vehicles under the "Datsun" brand name and is one of the largest car manufacturers... In 1999, Nissan entered an alliance with Renault S.A. of France. Nissan is among the top three Asian (also known as the Japanese Big 3 Automakers) rivals of the "Big Three" in the U.S. Currently they are the third largest Japanese car manufacturer. It operates the Infiniti brand.

Products Automotive products

Infiniti G35 Main articles: List of Nissan vehicles andList of Nissan engines.Nissan has produced an extensive range of mainstream cars and trucks, initially for domestic consumption but exported around the world since the 1950s.

It also produced several memorable sports cars, including the Datsun Fairlady 1500, 1600 and 2000 Roadsters, the Z-car, an affordable sports car

originally introduced in 1969; and the GT-R, a powerful all-wheel-drive sports coupe. Until 1982, Nissan automobiles in most export markets were sold under the Datsun brand. Since 1989, Nissan has sold its luxury models in North America under the Infiniti brand. Nissan also sells a small range of keicars, mainly as a joint venture with other Japanese manufacturers like Suzuki or Mitsubishi. Nissan does not develop these cars. Nissan also has shared model development of Japanese domestic cars with other manufacturers, particularly Mazda, Subaru, Suzuki and Isuzu.

Alternative propulsionCarlos Ghosn, chief executive of Nissan Motor, which is 44% owned by Renault, plans to start selling electric cars in 2012 as the company anticipates demand from city drivers. It would be good date for both for Renault and Nissan to introduce mass-market electric cars, Ghosn told a group of journalists at the Tokyo Motor Show on Wednesday October 24, 2007.When Nissan launches its new line of electrical vehicles in America in 2010; it will initially target fleet buyers, which can provide their own charging stations. Nissan is also hedging its bets by developing both a "parallel hybrid" system (akin to that found in the Toyota Prius) and a plug-in "series hybrid" similar to the Chevy Volt. But it favours the all-electric approach, even though it will be a tough sell, says Mr. Lane. As for Mr. Ghosn, he has no doubts. "We must have zeroemission vehicles

Non-automotive productsNissan has also had a number of ventures outside the automotive industry, most notably the Tu-Ka mobile phone service (est. 1994), which was sold to DDI and Japan Telecom (both now merged intoKDDI Corporation) in 1999. Nissan also owns Nissan Marine, a joint venture with Tohatsu Corp that produces motors for boats and other maritime equipment.

VisionNissan: Enriching Peoples Lives

MissionNissan provides unique and innovative automotive products and services that deliver superior measurable values to all stakeholders * In alliance with Renault. * Our stakeholders include customers, shareholders, employees, dealers, suppliers, as well as the communities where we work and operate. Meeting the Diverse Needs of Customers EverywhereNissan Cars Sustainable Mobility for SocietyInvesting in the Future For All StakeholdersNissan Corporate Social Responsibility

Nissan is dedicated to building appealing cars that customers can delight in driving. Attractive bodylines and refined interiorsmatched with dynamic driving characteristicsare key attributes that appeal to customers. At Nissan, we endeavor to build cars that offer better fuel consumption and environmental performance coupled with advanced safety technology, built on the philosophy of protecting people with our cars. Nissans R&D focuses on breakthrough technologies that give our products both a clear competitive edge and value-add to our customers. Exceeding customer expectations and gaining their trust and confidence are hallmarks of Nissan vehicles.

Ashok Leyland and Nissan Joint Venture Sunrise:On October 29, 2007, Ashok Leyland and Nissan Motor Company Ltd. signed a binding Master co-operation Agreement (MCA) for the formation of the three joint venture companies supporting the Light commercial vehicle (LCV) business.

The formation of the JV is a significant initiative in achieving the vision of theHinduja Group and the Ashok Leyland Management to transform the company into a full range commercial vehicle and in that process, both organically and inorganically extend its footprints across the globe. The JV offers both low and high-end versions of LCVs (Ashok Leyland branded vehicles at the lower end, Nissan at the higher end). The JV leverages Ashok Leylands manufacturing competitiveness, market insight and a strong presence in India and other countries, core engineering capabilities and widespread marketing network, while Nissans solid engineering foundation, product development and a design capability and a global marketing network.

The JV project was coined Project Sunrise internally reflecting partnership with a company from the land of the rising sun. The project comprises of three JVs (Vehicle Manufacturing Company, Power train Manufacturing Company and Technology Development Company) covering the following business areas.

Vehicle Manufacturing Company a company with exclusive rights tomanufacture LCV products in India for both the partners. Manufacturing facility is located in India and the company is owned 51% by Ashok Leyland and 49% by Nissan. Production is expected to start in 2010 and will include the new generation Nissan Atlas F24 light-duty truck, in addition to a range of products covering applications from 2.5 to 8 ton gross vehicle weight (GVW). In the medium term, production volume, intended for both Indian and export markets, is expected to grow beyond 1,00,000 units annually.

Power train Manufacturing Company responsible for themanufacture and assembly of engines and other drivetrain components to be fitted in LCV products and for export. Manufacturing is located in India and the company is owned 51% Nissan and 49% by Ashok Leyland.

Technology Development Company responsible for the developmentof LCV products and related powertrains, destined for the Indian and select global markets. This JV is owned 50:50 by the two partners and located in Chennai. The products developed will be sold under both the Ashok Leyland and Nissan brands.

In addition this, the two partners also expect to cooperate to leverage each others dealer networks in specific global markets. For example, this could provide Nissan with access to Ashok Leylands dealers in India and for Ashok Leyland, access to Nissan dealer networks in specific export markets.

The JV is also set to benefit from leveraging the sourcing strengths of both the partners.

ORGANISATION CHART & PRODUCT PROFILE

Chapter No: 2 Organisation Chart & Product Profile

ORGANISATION CHART

PRODUCT PROFILE

Ashok Leyland and Nissan unveil their first LCV for India

The Ashok Leyland DOST to be market-launched by second quarter of FY 2011-12

Chennai, 29th March, 2011: The Hinduja Group flagship, Ashok Leyland and Nissan Motor Company today unveiled their first Light Commercial Vehicle (LCV) the Ashok Leyland DOST. The product will be launched to the market, as indicated earlier, in the second quarter of FY 2011-2012. The Ashok Leyland DOST will be produced in Ashok Leylands Hosur manufacturing plant. Powered by a specially-developed, 55 hp high-torque, 3-cylinder, turbocharged Common Rail Diesel engine, the vehicle has a payload capacity of 1.25 Tonnes. Reflecting the growing expectations of the Indian LCV customer, the Ashok Leyland DOST will be available in 3 versions: a base version with manual steering, a mid version with power steering and a higher version which will have dual tone interiors, power steering and AC. The vehicle will be available in both BSIII and BSIV versions. Mirroring the evolution of the entire Indian car and light truck market, the Small Commercial Vehicle segment (vehicles less than 3.5 Tonnes) has been witnessing a perceptible upward shift in terms of features, performance and payload and the Ashok Leyland DOST has been positioned as a contemporary, powerful yet highly efficient product. With the hub-and-spoke model fast gaining ground, it is well-placed to ride the robust demand for vehicles making last-mile deliveries. The Ashok Leyland DOST will be available through a newly developed LCV exclusive network to give customers a new level of experience.

The Indian market is rapidly evolving and customer expectations are growing. We believe that the LCV segment is ready for a substantial upgradation of products that yet offer low cost of ownership. The Ashok Leyland DOST, with its carefully calibrated design and features, attempts to offer a new level of experience to the Indian customer, said Dr. V. Sumantran, Executive Vice Chairman, Hinduja Automotive Ltd. and Chairman, Nissan Ashok Leyland Powertrain Ltd. Its design reflects the philosophy of both partners: blending the long traditions of quality and comfort of Nissan with the proven record of rugged reliability and fuel efficiency of Ashok Leyland, he elaborated.

Dr. Andy Palmer, Senior Vice-President, Nissan Motor Company and Chairman, Ashok Leyland Nissan Vehicles Ltd., said, The product blends the best in terms of Japanese engineering from Nissan, with local relevance that Ashok Leyland brings to the table. It represents a very attractive value proposition to the small and medium businesses that it is targeted at and we are confident that it will find wide acceptance when launched.

FINANCIAL PERFORMANCE ANALYSIS

Chapter No: 3 Financial Performance analysis

CAPITAL BUDGETING

Definition:

Capital Budgeting consists in planning for development of available capital for the purpose of maximizing the long term profitability (Return on investment) of the firm

-R.M.LYNCH

Meaning:

Capital budgeting means planning the capital expenditure in acquisition of fixed (capital) assets such as land, building, plant or new projects as a whole. It includes replacing and modernizing a process, introducing a new product and expansion of the business. It involves the preparation of Detailed Project Report (DPR) and cost and revenue statements indicating the profitability. The project which gives the highest return on investment is to be selected and then investment is to be made in such a project as to maximize the profitability of the firm.

CAPITAL BUDGETING PROCESS

OBJECTIVES OF CAPITAL BUDGETINGThe objectives of capital budgeting are summarized as given below: i) It aims at deciding the most profitable among the numerous investment proposals available. It decides the most suitable among different sources of finance on the basis of capital market constraints. The growth and expansion of the firm and modernization can be taken care of.

ii)

iii)

TYPES OF CAPITAL BUDGETING DECISIONS

I.

On the basis of firms existence:

Replacement and Modernisation Decisions ii.Expansion Decisions iii.Diversification Decisionsi. II.

On the basis of Decision situation: i.Mutual exclusive Decisions ii.Accept-Reject Decisions iii.Contingent Decisions

I.

Traditional (or) Non-discounting methods

As the name itself suggests, these methods do not discount cash flows to find out their present worth. There are two such methods available i.e., PAY BACK PERIOD METHOD, and THE ACCOUNTING OR AVERAGE RATE OF RETURN METHOD. These are essentially rules of thumb that intuitively grapple with the trade-off between net investment and operating cash inflows. Both these traditional evaluation criteria are discussed below:

1. Pay Back Period Method:

This method, sometimes called the payout or pay off or replacement period method, determines the length of time required to recover the initial outlay of a project. In other words, it is the period within which the total cash inflows from the project equals the cost of investment in the project. The lower the pay back period, the better it is since initial investment is recouped faster.

Example : Suppose a project with an initial investment of Rs.5,00,000, yields profit of Rs. 1,00,000, after writing off depreciation of Rs. 25,000 per annum. In this case, the pay back period is computed as given below:

CALCULATION OF PAY BACK PERIOD =INITIAL INVESTMENT CASH ACCRUAL AFTER TAX BEFORE DEPRECIATION

Solution: CFATp.a = Profit after tax + Depreciation = 1,00,000 + 25,000 = Rs. 1,25,000PAYBACK PERIOD=500000125000

= 4 years

In the case of uniform CFATp.a. =INITIAL INVESTMENT

CFAT p.a

In the case of differential CFAT for various years,i) ii) iii) Compute cumulative CFAT at the end of each year. Find out the year in which cumulative CFAT exeeds initial investment. Payback period = Time at which cumulative CFAT= Initial investment (calculation on time proportion basis) Accept if the payback period is less than maximum or bench mark period, else reject the project.

iv)

PRODUCT PRICING SKILL & PROFITABILTY ESTIMATION

OBJECTIVE To study the profitability for the current selling price for all the Engine models. To Determine the Pay Back Period of the Investment.

Capital Investment

Description Specific Equipment Vendor Tooling Others Sub Total

FY'09-10 50 11 1 62

FY'10-11 FY'11-12 Total 107 83 2 192 159 33 126 190 220 3 413

INVESTMENT on LAND is not considered.

Gross Profit, Net Profit, Tax RateGross Profit Selling Revenue Less- Material Cost Conversion Cost *** (B) *** (C) *** (A)

Royalty

*** (D) *** *** (E) = (B)+(C)+(D) (F) = (A)-(E)

FACTORY COST GROSS PROFIT Net Profit Gross Profit Less- Fixed Cost Operating Expenses Total Expenses NET PROFIT

*** *** (G) *** (H) *** ***

(F)

(K) = (G)+(H) (L)=(F)-(K)

Tax Rate 30 %

ADMINISTRATION Overhead - Revision - 2 Tentative Budget for Particulars FY' FY' FY' FY' FY' FY' FY' FY'

08-09

09-10

10-11

11-12

12-13

13-14

14-15

15-16MnINR

Salary Expatriates Accomodation for Expatriates Salary Stuff Recruit expence Staff Welfare Contingency HR Cost

16.07 4.55 16.46 1.00 1.60 0.80 40.48

16.07 4.55 16.46 1.00 1.60 0.80 40.48

10.01 3.72 15.00

10.01 3.72 17.50

10.01 3.72 17.50

10.01 3.72 17.50

10.01 3.72 17.50

28.73

31.23

31.23

31.23

31.23

R&D & Testing Cost Research & Development Cost Technical Consultancy Consumable Tools & Stores 0.50 37.31 4.68 50.00 1.00 50.00 1.40 1.00 50.00 1.40 1.00 50.00 1.40 1.00 50.00 1.40 1.00 50.00 1.40

Administration Expense Consultancy Charges Travel - Domestic Travel - International Rental Charges for Office 19.15 14.86 17.84 8.30 9.58 5.00 5.00 8.30 2.30 3.00 3.00 4.05 1.00 1.00 3.00 4.05 1.00 1.00 4.05 1.00 1.00 4.05 1.00 1.00 4.05

Networking & IT expense Other expense

9.60 12.05

9.60 12.05

18.00 5.00

3.00 5.00

3.00 3.00

3.00 3.00

3.00 3.00

TOTAL Accum

39

165 165

140 305

116 421

101 522

96 618

96 713

96 809

Cal Data for CPU -Adm OH yellow Cal Data for CPU -PIC / Common Green

40

95.68 69

95.68 44

95.68 21

95.68 5

95.68 0

95.68 0

95.68 0

Phase-2 (JV's plant establish) is not considerred

NPT-CO-CO-017_N_300511_P15 CPU 55K

KPI sheet for P15 Profitability Estimation

Per Unit Cost

Model

Selling price

Material Cost

Inhouse Rejection Cost (3% of Material Cost) 2005 2040 2078 2334 2368 2407

Conversion cost

Royalty

Factory Cost

Marginal Profit (W/o JV Expense) 1179 1280 1441 2328 2431 2495

Model wise Cost

C22 Truck BS3 C22 Truck LX BS3 C22 Truck VX BS3 C22 Truck BS4 C22 Truck LX BS4 C22 Truck VX BS4

77100 78400 79900 89800 91100 92500

66847 67985 69255 77810 78947 80217

5500 5500 5500 5500 5500 5500

1569 1595 1626 1828 1854 1882

75921 77120 78459 87472 88669 90005

Fy'11-12Depreciation Interest on Capital Investment (10%) Maintenace Cost (2%)7yrs 10% on Dep. Value 2% on Dep. Value

Fy'12-13 67 34

Fy'13-14 67 27

Fy'14-15 67 20

Fy'15-16 67 13

67 40

NALPT Fixed Cost (Mn.INR)

7

6

4

3

1

TOTAL

115

107

99

91

82

Fy'11-12

Fy'12-13

Fy'13-14

Fy'14-15

Fy'15-16

NALPT Operating Expense

Administration expense (Mn.INR) Engine Transportation Cost / unit Warranty Cost / unit

96 15 1600

96 17 1600

96 19 1600

96 19 1600

96 19 1600

Volume for

Case-1 Case-3 Case-4 Case-5

Fy'11-12 Model C22 Truck BS3 C22 Truck LX BS3 C22 Truck VX BS3 C22 Truck BS4 C22 Truck LX BS4 C22 Truck VX BS4 27,500 4,260 9,100 910 3,970 8,590 670

Fy'12-13 39,100 6,057 12,939 1,294 5,645 12,213 953

Fy'13-14 55,000 8,520 18,200 1,820 7,940 17,180 1,340

Fy'14-15 55,000 8,520 18,200 1,820 7,940 17,180 1,340

Fy'15-16 55,000 8,520 18,200 1,820 7,940 17,180 1,340

Volume for

Case-2

Fy'11-12 Model C22 Truck BS3 C22 Truck LX BS3 C22 Truck VX BS3 C22 Truck BS4 C22 Truck LX BS4 C22 Truck VX BS4 27,500 4,260 9,100 910 3,970 8,590 670

Fy'12-13 49,000 7,591 16,215 1,621 7,074 15,306 1,194

Fy'13-14 100,000 15,491 33,091 3,309 14,436 31,236 2,436

Fy'14-15 100,000 15,491 33,091 3,309 14,436 31,236 2,436

Fy'15-16 100,000 15,491 33,091 3,309 14,436 31,236 2,436

Expenditure Before Commencement Of Sale1 IT Total FY'09-10 FY'10-11 FY'11-12 2 3 18 Total 23

2

PIC Technical Consultancy R&D Cost Consultancy Charges Contract Casual Total

FY'09-10 FY'10-11 FY'11-12 16 1 16 0 33 24 0 4 0 27 15 180 6 1 202

Total 55 181 26 1 262

3

PIC + Testing Charges

FY'09-10 FY'10-11 FY'11-12

Total

Total

14

2

16

4

HR Cost Expat Salary Expat Rent Staff Salary Recruitment Expense Staff Welfare Total

FY'09-10 FY'10-11 FY'11-12 2 4 16 0 1 23 18 7 23 0 0 49 10 4 19 0 1 34

Total 31 15 58 1 2 106

5

Office Rent Total

FY'09-10 FY'10-11 FY'11-12 4 7 4

Total 15

6

Travel (Dom. & Int.) Total

FY'09-10 FY'10-11 FY'11-12 3 8 3

Total 14

Others 7 Total

FY'09-10 FY'10-11 FY'11-12 3 9

Total

Sub Total

68

117

262

447

CASE NO: 1 (Present Selling Price, Present Volume)REVENUE FORECASTING PARTICULARS No.Of.Units 27,500 4,260 9,100 910 3,970 8,590 670 39,100 6,057 12,939 1,294 5,645 12,213 953 55,000 8,520 18,200 1,820 7,940 17,180 1,340 Selling pricePer unit

Factory CostPer unit

Marginal profit -1Per unit

FY ' 11 12


77,100 78,400 79,900 89,800 91,100 92,500

75,921 77,120 78,459 87,472 88,669 90,005

1,179 1,280 1,441 2,328 2,431 2,495

FY ' 12 13


77,100 78,400 79,900 89,800 91,100 92,500

75,921 77,120 78,459 87,472 88,669 90,005

1,179 1,280 1,441 2,328 2,431 2,495

F Y' 1 31 4


77,100 78,400 79,900 89,800 91,100 92,500

75,921 77,120 78,459 87,472 88,669 90,005

1,179 1,280 1,441 2,328 2,431 2,495

F Y' 1 41 5


55,000 8,520 18,200 1,820 7,940 17,180 1,340 55,000

77,100 78,400 79,900 89,800 91,100 92,500

75,921 77,120 78,459 87,472 88,669 90,005

1,179 1,280 1,441 2,328 2,431 2,495

F

Y' 1 51 6


8,520 18,200 1,820 7,940 17,180 1,340

77,100 78,400 79,900 89,800 91,100 92,500

75,921 77,120 78,459 87,472 88,669 90,005

1,179 1,280 1,441 2,328 2,431 2,495


Fixed CostPer unit

Operating ExpensesPer unit

Net ProfitPer unit

Total Cost incurredPer unit

FY' 11-12

1,179 1,280 1,441 2,328 2,431 2,495

4175 4175 4175 4175 4175 4175

5094 5094 5094 5094 5094 5094

(8,090) (7,989) (7,828) (6,941) (6,838) (6,775)

85,190 86,389 87,728 96,741 97,938 99,275

FY' 12-13

1,179 1,280 1,441 2,328 2,431 2,495

2729 2729 2729 2729 2729 2729

4064 4064 4064 4064 4064 4064

(5,614) (5,513) (5,352) (4,465) (4,363) (4,299)

82,714 83,913 85,252 94,265 95,463 96,799

FY' 13-14

1,179 1,280 1,441 2,328 2,431 2,495

1793 1793 1793 1793 1793 1793

3359 3359 3359 3359 3359 3359

(3,973) (3,871) (3,710) (2,823) (2,721) (2,657)

81,073 82,271 83,610 92,623 93,821 95,157

FY' 1415

1,179 1,280 1,441 2,328 2,431 2,495

1646 1646 1646 1646 1646 1646

3359 3359 3359 3359 3359 3359

(3,826) (3,724) (3,563) (2,676) (2,574) (2,510)

80,926 82,124 83,463 92,476 93,674 95,010

FY' 1516

1,179 1,280 1,441 2,328 2,431 2,495

1499 1499 1499 1499 1499 1499

3359 3359 3359 3359 3359 3359

(3,678) (3,577) (3,416) (2,529) (2,426) (2,363)

80,778 81,977 83,316 92,329 93,526 94,863

CASE 1 (Present Selling Price, Present Volume) Calculation Of Marginal Profit Particulars Sales Revenue Less Material Cost conversion cost Royalty (Gross Profit) Marginal Profit - 1 Calculation Of Net Profit Marginal Profit - 1 (Gross Profit) Less Fixed Cost Operating Expenses (Net Profit) Marginal Profit - 2 In Rs. Mn Fy'13-14 4631 4135 303 86 4524 108 Fy'13-14 In Rs. Mn 54 115 140 -201 76 107 159 -189 108 99 185 -176 108 91 185 -168 108 82 185 -160

Fy'11-12 2316 2067 151 43 2262 54 Fy'11-12

Fy'12-13 3292 2940 215 61 3216 76 Fy'12-13

Fy'14-15 4631 4135 303 86 4524 108 Fy'14-15

Fy'15-16 4631 4135 303 86 4524 108 Fy'15-16

CASE NO: 2 (Present Selling Price, Increased Volume)

REVENUE FORECASTING PARTICULARS No.Of.Units 27,500 C22 Truck BS3 FY C22 Truck LX BS3 ' 11 C22 Truck VX BS3 12 C22 Truck BS4 C22 Truck LX BS4 C22 Truck VX BS4 4,260 9,100 910 3,970 8,590 670 49,000 C22 Truck BS3 FY C22 Truck LX BS3 ' 12 C22 Truck VX BS3 13 C22 Truck BS4 C22 Truck LX BS4 C22 Truck VX BS4 7,591 16,215 1,621 7,074 15,306 1,194 77,100 78,400 79,900 89,800 91,100 92,500 75,921 77,120 78,459 87,472 88,669 90,005 1,179 1,280 1,441 2,328 2,431 2,495 Selling pricePer unit



77,100 78,400 79,900 89,800 91,100 92,500

75,921 77,120 78,459 87,472 88,669 90,005

1,179 1,280 1,441 2,328 2,431 2,495

100,000 C22 Truck BS3 F Y' 1 31 4 C22 Truck LX BS3 C22 Truck VX BS3 C22 Truck BS4 C22 Truck LX BS4 C22 Truck VX BS4 15,491 33,091 3,309 14,436 31,236 2,436 77,100 78,400 79,900 89,800 91,100 92,500 75,921 77,120 78,459 87,472 88,669 90,005 1,179 1,280 1,441 2,328 2,431 2,495

100,000 C22 Truck BS3 F Y' 1 41 5 C22 Truck LX BS3 C22 Truck VX BS3 C22 Truck BS4 C22 Truck LX BS4 C22 Truck VX BS4 15,491 33,091 3,309 14,436 31,236 2,436 77,100 78,400 79,900 89,800 91,100 92,500 75,921 77,120 78,459 87,472 88,669 90,005 1,179 1,280 1,441 2,328 2,431 2,495

F Y' 1 51 6

100,000 C22 Truck BS3 C22 Truck LX BS3 C22 Truck VX BS3 15,491 33,091 3,309 77,100 78,400 79,900 75,921 77,120 78,459 1,179 1,280 1,441

C22 Truck BS4 C22 Truck LX BS4 C22 Truck VX BS4 Marginal profit -1

14,436 31,236 2,436 Fixed Cost

89,800 91,100 92,500

87,472 88,669 90,005 Net Profit

2,328 2,431 2,495

Operating Expenses

Per unit

Per unit

Per unit

Per unit

1, 179 FY 280 ' 11 441 12 328 431 2, 495 4175 5094 5) 1, 4175 1, 4175 2, 4175 2, 4175 5094 8) 5094 1) 5094 8) 5094 9) 4175 5094 0)

(8,09 (7,98 (7,82 (6,94 (6,83 (6,77

1, 179 FY 280 ' 12 441 13 328 431 2, 495 F Y' 1 31 2178 3570 3) 1, 2178 1, 2178 2, 2178 2, 2178 3570 7) 3570 9) 3570 6) 3570 7) 2178 3570 9)

(4,56 (4,46 (4,30 (3,41 (3,31 (3,25

1, 179 1, 280 986 986

(2,38 2576 3) 2576 (2,28 2)

1, 441 2, 328 4 2, 431 2, 495 986 2576 7) 986 2576 1) 986 2576 4) 986 2576 0)

(2,12 (1,23 (1,13 (1,06

1, 179 1, F Y' 1 41 5 280 1, 441 2, 328 2, 431 2, 495 905 2576 6) 905 2576 0) 905 2576 3) 905 2576 9) 905 2576 1) 905 2576 2)

(2,30 (2,20 (2,03 (1,15 (1,05 (98

F Y' 1 51 6

1, 179 1, 280 1, 441 2, 328 2, 431 824 824 2576 2) 2576 9) 824 2576 9) 824 2576 0) 824 2576 1)

(2,22 (2,12 (1,95 (1,07 (96

2, 495 824 2576 5)

(90

CASE 2 (Present Selling Price, Increased Volume) Calculation Of Marginal Profit In Rs. Mn Particulars Fy'11-12 Fy'12-13 Fy'13-14 Sales Revenue 2316 4126 8420 Less Material Cost 2067 3684 7518 conversion cost 151 270 550 Royalty 43 77 157 2262 4030 8225 (Gross Profit) Marginal Profit - 1 54 96 195 Fy'11-12 Fy'12-13 Fy'13-14 Calculation Of Net Profit In Rs. Mn Marginal Profit - 1 (Gross Profit) 54 96 195 Less Fixed Cost 115 107 99 Operating Expenses 140 175 258 (Net Profit) Marginal Profit - 2 -201 -186 -161

Fy'14-15 8420 7518 550 157 8225 195 Fy'14-15

Fy'15-16 8420 7518 550 157 8225 195 Fy'15-16

195 91 258 -153

195 82 258 -145

CASE NO: 3 (For Present Selling Price & Reduced Costs)

REVENUE FORECASTING PARTICULARS No.Of.Units 27,500 4,260 9,100 910 3,970 8,590 670 39,100 6,057 12,939 1,294 5,645 12,213 953 55,000 8,520 18,200 1,820 7,940 17,180 1,340 Selling pricePer unit



FY ' 11 12


77,100 78,400 79,900 89,800 91,100 92,500

75,921 77,120 78,459 87,472 88,669 90,005

1,179 1,280 1,441 2,328 2,431 2,495

FY ' 12 13


77,100 78,400 79,900 89,800 91,100 92,500

75,921 77,120 78,459 87,472 88,669 90,005

1,179 1,280 1,441 2,328 2,431 2,495

F Y' 1 31 4


77,100 78,400 79,900 89,800 91,100 92,500

75,921 77,120 78,459 87,472 88,669 90,005

1,179 1,280 1,441 2,328 2,431 2,495

F Y' 1 41 5


55,000 8,520 18,200 1,820 7,940 17,180 1,340

77,100 78,400 79,900 89,800 91,100 92,500

75,921 77,120 78,459 87,472 88,669 90,005

1,179 1,280 1,441 2,328 2,431 2,495

F Y' 1 51 6


55,000 8,520 18,200 1,820 7,940 17,180 1,340

77,100 78,400 79,900 89,800 91,100 92,500

75,921 77,120 78,459 87,472 88,669 90,005

1,179 1,280 1,441 2,328 2,431 2,495


Fixed CostPer unit


Net ProfitPer unit

1, 179 1, 280 FY' 11-12 1, 441 2, 328 2, 431 2, 495 4175 5094 5) 4175 5094 8) 4175 5094 1) 4175 5094 8) 4175 5094 9) 4175 5094 0)

(8,09 (7,98 (7,82 (6,94 (6,83 (6,77

1, 179 1, 280 FY' 12-13 1, 441 2, 328 2, 431 2, 495 FY'1 2729 4064 9) 2729 4064 3) 2729 4064 5) 2729 4064 2) 2729 4064 3) 2729 4064 4)

(5,61 (5,51 (5,35 (4,46 (4,36 (4,29

1, 179 1, 280 1, 441 3-14 2, 328 2, 431 2, 495 1793 3359 7) 1793 3359 1) 1793 3359 3) 1793 3359 0) 1793 3359 1) 1793 3359 3)

(3,97 (3,87 (3,71 (2,82 (2,72 (2,65

1, 179 1, 280 1, FY'1 4-15 441 2, 328 2, 431 2, 495 1646 3359 0) 1646 3359 4) 1646 3359 6) 1646 3359 3) 1646 3359 4) 1646 3359 6)

(3,82 (3,72 (3,56 (2,67 (2,57 (2,51

FY'1 5-16 179

1, 1499 1, 280 1, 441 2, 328 2, 431 2, 495 1499 1499 1499 3359 9) 1499 3359 6) 1499 3359 7) 3359 8)

(3,67 (3,57 (3,41 (2,52 (2,42 3359 6) 3359 (2,36 3)

CASE 3 (For Present Selling Price & Reduced Costs) Calculation Of Marginal Profit In Rs. Mn Particulars Fy'11-12 Fy'12-13 Fy'13-14 Sales Revenue 2316 3292 4631 Less Material Cost 2026 2881 4052 conversion cost 94 133 187 Royalty 43 61 86 2163 3075 4326 (Gross Profit) Marginal Profit - 1 153 217 306 Fy'11-12 Fy'12-13 Fy'13-14 Calculation Of Net Profit In Rs. Mn Marginal Profit - 1 (Gross Profit) 153 217 306 Less Fixed Cost 115 107 99 Operating Expenses 140 159 185 (Net Profit) Marginal Profit - 2 -102 -48 22

Fy'14-15 4631 4052 187 86 4326 306 Fy'14-15

Fy'15-16 4631 4052 187 86 4326 306 Fy'15-16

306 91 185 30

306 82 185 39

CASE NO: 4(Estimated Selling Price for Reduced Cost)REVENUE FORECASTING

PARTICULARS

No.Of.Units

Factory Cost

Fixed Cost

Operating Expenses

FY ' 11 12


27,500 4,260 9,100 910 3,970 8,590 670

Per unit

Per unit

Per unit

72,444 73,619 74,932 83,769 84,943 86,253

4175 4175 4175 4175 4175 4175

5094 5094 5094 5094 5094 5094

FY ' 12 13


39,100 6,057 12,939 1,294 5,645 12,213 953 55,000 8,520 18,200 1,820 7,940 17,180 1,340 55,000 8,520 18,200 1,820 7,940 17,180 1,340 55,000 8,520 18,200 1,820 7,940 17,180 1,340

72,444 73,619 74,932 83,769 84,943 86,253

2729 2729 2729 2729 2729 2729

4064 4064 4064 4064 4064 4064

F Y' 1 31 4


72,444 73,619 74,932 83,769 84,943 86,253

1793 1793 1793 1793 1793 1793

3359 3359 3359 3359 3359 3359

F Y' 1 41 5


72,444 73,619 74,932 83,769 84,943 86,253

1646 1646 1646 1646 1646 1646

3359 3359 3359 3359 3359 3359

F Y' 1 51 6


72,444 73,619 74,932 83,769 84,943 86,253

1499 1499 1499 1499 1499 1499

3359 3359 3359 3359 3359 3359

Total Cost Incurred

Marginal Profit - 2 (Net Profit)

Estimated Selling PricePer unit

Marginal Profit - 1 (Gross Profit)Per unit

FY ' 1112

81713 82888 84201 93038 94212 95522

9079 9210 9356 10338 10468 10614

90,792 92,098 93,557 103,376 104,680 106,136

18,348 18,479 18,625 19,607 19,737 19,883

FY ' 1213

79237 80412 81725 90562 91736 93046

8804 8935 9081 10062 10193 10338

88,041 89,347 90,806 100,625 101,929 103,385

15,597 15,728 15,874 16,856 16,986 17,132

FY '1 314

77596 78771 80083 88921 90095 91405

8622 8752 8898 9880 10011 10156

86,217 87,523 88,982 98,801 100,105 101,561

13,773 13,904 14,050 15,032 15,162 15,308

FY '1 415

77448 78624 79936 88773 89947 91257

8605 8736 8882 9864 9994 10140

86,054 87,359 88,818 98,637 99,942 101,397

13,610 13,740 13,886 14,868 14,999 15,144

FY '1 516

77301 78476 79789

8589 8720 8865

85,890 87,196 88,654

13,446 13,577 13,723

88626 89800 91110

9847 9978 10123

98,473 99,778 101,233

14,704 14,835 14,980

CASE 4 (Estimated Selling Price for Reduced Cost) Calculation Of Marginal Profit In Rs. Mn Particulars Fy'11-12 Fy'12-13 Fy'13-14 Sales Revenue 2691 3718 5130 Less Material Cost 2026 2881 4052 conversion cost 94 133 187 Royalty 43 61 86 2163 3075 4326 (Gross Profit) Marginal Profit - 1 528 643 804 Fy'11-12 Fy'12-13 Fy'13-14 Calculation Of Net Profit In Rs. Mn Marginal Profit - 1 (Gross Profit) 528 643 804 Less Fixed Cost 115 107 99 Operating Expenses 140 159 185 (Net Profit) Marginal Profit - 2 273 377 521

Fy'14-15 5121 4052 187 86 4326 795 Fy'14-15

Fy'15-16 5112 4052 187 86 4326 786 Fy'15-16

795 91 185 520

786 82 185 519

CASE NO: 4A(Estimated Selling Price for Reduced Cost)

REVENUE FORECASTING

PARTICULARS

No.Of.Units

Factory Cost

Fixed Cost

Operating Expenses

FY ' 1112


27,500 4,260 9,100 910 3,970 8,590 670 39,100 6,057 12,939 1,294 5,645 12,213 953 55,000 8,520 18,200 1,820 7,940 17,180 1,340

Per unit

Per unit

Per unit

72,444 73,619 74,932 83,769 84,943 86,253

4175 4175 4175 4175 4175 4175

5094 5094 5094 5094 5094 5094

FY ' 1213


72,444 73,619 74,932 83,769 84,943 86,253

2729 2729 2729 2729 2729 2729

4064 4064 4064 4064 4064 4064

FY '1 314


72,444 73,619 74,932 83,769 84,943 86,253

1793 1793 1793 1793 1793 1793

3359 3359 3359 3359 3359 3359

FY '1 415


55,000 8,520 18,200 1,820 7,940 17,180 1,340

72,444 73,619 74,932 83,769 84,943 86,253

1646 1646 1646 1646 1646 1646

3359 3359 3359 3359 3359 3359

FY '1 516


55,000 8,520 18,200 1,820 7,940 17,180 1,340

72,444 73,619 74,932 83,769 84,943 86,253

1499 1499 1499 1499 1499 1499

3359 3359 3359 3359 3359 3359

Total Cost Incurred 81713 82888 84201 93038 94212 95522

Marginal Profit 2 (Net Profit) 6056 6143 6240 6895 6982 7080



FY ' 1112

87,769 89,031 90,441 99,933 101,194 102,602

15,325 15,412 15,509 16,164 16,251 16,349

FY ' 1213

79237 80412 81725 90562 91736 93046

5873 5960 6057 6712 6799 6896

85,110 86,372 87,782 97,274 98,535 99,942

12,666 12,753 12,850 13,505 13,592 13,689

FY '1 314

77596 78771 80083 88921 90095

5751 5838 5935 6590 6677

83,347 84,609 86,019 95,511 96,772

10,902 10,990 11,087 11,742 11,829

91405

6774

98,179

11,926

FY '1 415

77448 78624 79936 88773 89947 91257

5740 5827 5924 6579 6666 6763

83,188 84,451 85,861 95,353 96,614 98,021

10,744 10,831 10,929 11,584 11,671 11,768

FY '1 516

77301 78476 79789 88626 89800 91110

5729 5816 5913 6568 6655 6753

83,030 84,293 85,703 95,195 96,456 97,863

10,586 10,673 10,771 11,426 11,513 11,610

CASE 4A (Estimated Selling Price for Reduced Cost) Calculation Of Marginal Profit Particulars Fy'11-12 Fy'12-13 Sales Revenue 2601 3594 Less Material Cost 2026 2881 conversion cost 94 133 Royalty 43 61 2163 3075 (Gross Profit) Marginal Profit - 1 438 519 Fy'11-12 Fy'12-13 Calculation Of Net Profit Marginal Profit - 1 (Gross Profit) 438 519 Less Fixed Cost 115 107 Operating Expenses 140 159 (Net Profit) Marginal Profit - 2 183 254

In Rs. Mn Fy'13-14 4959 4052 187 86 4326 633 Fy'13-14 In Rs. Mn 633 99 185 350

Fy'14-15 4950 4052 187 86 4326 625 Fy'14-15

Fy'15-16 4942 4052 187 86 4326 616 Fy'15-16

625 91 185 350

616 82 185 349

CASE NO: 5 (Estimated Selling Price ,No Cost Reduction)

REVENUE FORECASTING PARTICULARS No.Of.Units 27,500 C22 Truck BS3 FY C22 Truck LX BS3 ' 11 C22 Truck VX BS3 12 C22 Truck BS4 C22 Truck LX BS4 C22 Truck VX BS4 4,260 21 77,1 9,100 20 78,4 910 59 87,4 3,970 72 88,6 8,590 69 90,0 670 05 39,100 75,9 C22 Truck BS3 FY C22 Truck LX BS3 ' 12 C22 Truck VX BS3 13 C22 Truck BS4 C22 Truck LX BS4 C22 Truck VX BS4 F 6,057 21 77,1 12,939 20 78,4 1,294 59 87,4 5,645 72 88,6 12,213 69 90,0 953 05 55,000 2729 4064 2729 4064 2729 4064 2729 4064 2729 4064 2729 4064 4175 5094 4175 5094 4175 5094 4175 5094 4175 5094 Factory CostPer unit

Fixed CostPer unit


75,9 4175 5094

75,9 C22 Truck BS3 C22 Truck LX BS3 Y' 1 31 4 C22 Truck VX BS3 C22 Truck BS4 C22 Truck LX BS4 C22 Truck VX BS4 8,520 21 77,1 18,200 20 78,4 1,820 59 87,4 7,940 72 88,6 17,180 69 90,0 1,340 05 55,000 75,9 C22 Truck BS3 F Y' 1 41 5 C22 Truck LX BS3 C22 Truck VX BS3 C22 Truck BS4 C22 Truck LX BS4 C22 Truck VX BS4 8,520 21 77,1 18,200 20 78,4 1,820 59 87,4 7,940 72 88,6 17,180 69 90,0 1,340 05 1646 3359 1646 3359 1646 3359 1646 3359 1646 3359 1646 3359 1793 3359 1793 3359 1793 3359 1793 3359 1793 3359 1793 3359

55,000 75,9 C22 Truck BS3 F Y' 1 51 6 C22 Truck LX BS3 C22 Truck VX BS3 C22 Truck BS4 C22 Truck LX BS4 C22 Truck VX BS4 8,520 21 77,1 18,200 20 78,4 1,820 59 87,4 7,940 72 88,6 17,180 69 90,0 1,340 05 1499 3359 1499 3359 1499 3359 1499 3359 1499 3359 1499 3359

Total Cost Incurred

Marginal Profit - 2 (Net Profit)



94, 85190 FY ' 11 12 86389 87728 96741 97938 99275 9466 656 95, 9599 987 97, 9748 475 107, 10749 490 108, 10882 820 110, 11031 305 300 151 018 017 868 735

18, 18, 19, 20, 20, 20,

91, 82714 FY ' 12 13 83913 85252 94265 95463 96799 9190 905 93, 9324 237 94, 9472 724 104, 10474 739 106, 10607 069 107, 10755 554 549 400 267 266 117 984

15, 16, 16, 17, 17, 17,

F Y' 1 31 4

90, 81073 82271 83610 92623 93821 9008 081 91, 9141 413 92, 9290 900 102, 10291 915 10425 245 443 104, 576 442 293 160

14, 14, 14, 15, 15,

105, 95157 10573 730 725

15,

89, 80926 F Y' 1 41 5 82124 83463 92476 93674 95010 8992 917 91, 9125 249 92, 9274 737 102, 10275 751 104, 10408 082 105, 10557 566 561 413 279 278 129 996

13, 14, 14, 15, 15, 15,

89, 80778 F Y' 1 51 6 81977 83316 92329 93526 94863 8975 754 91, 9109 085 92, 9257 573 102, 10259 588 103, 10392 918 105, 10540 403 397 249 116 114 966 833

13, 13, 14, 15, 15, 15,

CASE 5 (Estimated Selling Price ,No Cost Reduction) Calculation Of Marginal Profit Particulars Fy'11-12 Fy'12-13 Sales Revenue 2801 3875 Less Material Cost 2067 2940 conversion cost 151 215 Royalty 43 61 2262 3216 (Gross Profit) Marginal Profit - 1 539 659 Fy'11-12 Fy'12-13 Calculation Of Net Profit Marginal Profit - 1 (Gross Profit) 539 659 Less Fixed Cost 115 107 Operating Expenses 140 159 (Net Profit) Marginal Profit - 2 284 393

In Rs. Mn Fy'13-14 5350 4135 303 86 4524 826 Fy'13-14 In Rs. Mn 826 99 185 543

Fy'14-15 5341 4135 303 86 4524 817 Fy'14-15

Fy'15-16 5332 4135 303 86 4524 808 Fy'15-16

817 91 185 542

808 82 185 541

CASE NO: 5A (Estimated Selling Price ,No Cost Reduction)

REVENUE FORECASTING PARTICULARS No.Of.Units 27,500 4,260 9,100 910 3,970 8,590 670 39,100 6,057 12,939 1,294 5,645 12,213 953 55,000 8,520 Factory Cost Fixed Cost Operating ExpensesPer unit

Per unit

Per unit

FY ' 11 12


75,921 77,120 78,459 87,472 88,669 90,005

4175 4175 4175 4175 4175 4175

5094 5094 5094 5094 5094 5094

FY ' 12 13


75,921 77,120 78,459 87,472 88,669 90,005

2729 2729 2729 2729 2729 2729

4064 4064 4064 4064 4064 4064

F Y'

C22 Truck BS3

75,921

1793

3359

1 31

C22 Truck LX BS3 C22 Truck VX BS3 C22 Truck BS4 C22 Truck LX BS4 C22 Truck VX BS4

18,200 1,820 7,940 17,180 1,340 55,000 8,520 18,200 1,820 7,940 17,180 1,340

77,120 78,459 87,472 88,669 90,005

1793 1793 1793 1793 1793

3359 3359 3359 3359 3359

F Y' 1 41 5


75,921 77,120 78,459 87,472 88,669 90,005

1646 1646 1646 1646 1646 1646

3359 3359 3359 3359 3359 3359

F Y' 1 51 6


55,000 8,520 18,200 1,820 7,940 17,180 1,340

75,921 77,120 78,459 87,472 88,669 90,005

1499 1499 1499 1499 1499 1499

3359 3359 3359 3359 3359 3359

Total Cost IncurredPer unit

Marginal Profit - 2 (Net Profit)Per unit



FY ' 11 12

85190 86389 87728 96741 97938 99275

6412 6502 6603 7282 7372 7472

91,602 92,891 94,331 104,022 105,310 106,747

15,681 15,771 15,872 16,551 16,641 16,741

FY

' 12 13

82714 83913 85252 94265 95463 96799

6226 6316 6417 7095 7185 7286

88,940 90,229 91,669 101,360 102,648 104,085

13,019 13,109 13,210 13,888 13,979 14,079

F Y' 1 31 4

81073 82271 83610 92623 93821 95157

6102 6192 6293 6972 7062 7162

87,175 88,464 89,903 99,595 100,883 102,319

11,254 11,344 11,445 12,123 12,213 12,314

F Y' 1 41 5

80926 82124 83463 92476 93674 95010

6091 6181 6282 6961 7051 7151

87,017 88,305 89,745 99,437 100,724 102,161

11,096 11,186 11,287 11,965 12,055 12,156

F Y' 1 51 6

80778 81977 83316 92329 93526 94863

6080 6170 6271 6949 7040 7140

86,858 88,147 89,587 99,279 100,566 102,003

10,937 11,027 11,128 11,807 11,897 11,997

CASE 5A (Estimated Selling Price ,No Cost Reduction) Calculation Of Marginal Profit In Rs. Mn Particulars Fy'11-12 Fy'12-13 Fy'13-14 Sales Revenue 2710 3750 5177 Less Material Cost 2067 2940 4135 conversion cost 151 215 303 Royalty 43 61 86 2262 3216 4524 (Gross Profit) Marginal Profit - 1 449 534 654 Fy'11-12 Fy'12-13 Fy'13-14 Calculation Of Net Profit In Rs. Mn Marginal Profit - 1 (Gross Profit) 449 534 654 Less Fixed Cost 115 107 99 Operating Expenses 140 159 185 (Net Profit) Marginal Profit - 2 194 268 370

Fy'14-15 5169 4135 303 86 4524 645 Fy'14-15

Fy'15-16 5160 4135 303 86 4524 636 Fy'15-16

645 91 185 370

636 82 185 369

FINANCE DEPARTMENT- PROFITABILITY

Chapter No: 5 FINANCE DEPARTMENT- PROFITABILITY

CALCULATION OF PAY BACK PERIOD =INITIAL INVESTMENT CASH ACCRUAL AFTER TAX BEFORE DEPRECIATION

CASE NO: 1 (Present Selling Price, Present Volume)

Table No:1

Calculation of CFAT(Profit After Tax Before Depreciation Fy'11-12 Fy'12-13 (Net Profit) Marginal Profit - 2 -201 -189 less Tax@30% 0 0

Fy'13-14 -176 0

Fy'14-15 -168 0

Fy'15-16 -160 0

Add

Depreciation CFAT Cumulative CFAT

67 -134 -134

67 -122 -255

67 -108 -364

67 -100 -464

67 -92 -556

FINDINGS:For the current Selling price, only loss will be incurred through out the project life.

CASE NO: 2 (Present Selling Price, Increased Volume)

Table No:2Calculation of CFAT(Profit After Tax Before Depreciation Fy'11-12 Fy'12-13 (Net Profit) Marginal Profit - 2 -201 -186 less Tax@30% 0 0 Add Depreciation 67 67 CFAT -134 -118 Cumulative CFAT -134 -252 Fy'13-14 -161 0 67 -93 -345 Fy'14-15 -153 0 67 -85 -430 Fy'15-16 -145 0 67 -77 -507

FINDINGS:For the current Selling price, only loss will be incurred through out the project life.

CASE NO: 3 (For Present Selling Price & Reduced Costs)

Table No:3

Calculation of CFAT(Profit After Tax Before Depreciation Fy'11-12 Fy'12-13 (Net Profit) Marginal -102 -48

Fy'13-14 22

Fy'14-15 30

Fy'15-16 39

Profit - 2 less Tax@30% Add Depreciation CFAT Cumulative CFAT

0 67 -35 -35

0 67 19 -15

0 67 90 74

0 67 98 172

0 67 106 278

FINDINGS:With the Current selling price the project may achieve it Pay Back Period in more than 11 years.

CASE NO: 4(Estimated Selling Price for Reduced Cost).

Table No:4Calculation of CFAT(Profit After Tax Before Depreciation Fy'11-12 Fy'12-13 (Net Profit) Marginal Profit - 2 273 377 less Tax@30% 82 113 Add Depreciation 67 67 CFAT 259 332 Cumulative CFAT 259 590 Fy'13-14 521 156 67 432 1022 Fy'14-15 520 156 67 432 1454 Fy'15-16 519 156 67 431 1885

FINDINGS:

The project with the estimated current selling price may get the pay back in 3 years and 1 month, which is beneficiary since the company may go for a new project after 3 years.

CASE NO: 4A(Estimated Selling Price for Reduced Cost)

Table No:5

Calculation of CFAT(Profit After Tax Before Depreciation Fy'11-12 (Net Profit) Marginal Profit - 2 183 less Tax@30% 55 Add Depreciation 67 CFAT 196 Cumulative CFAT 196

Fy'12-13 254 76 67 245 441

Fy'13-14 350 105 67 313 754

Fy'14-15 350 105 67 312 1066

Fy'15-16 349 105 67 312 1377

FINDINGS:The project with the current estimated selling price may get the pay back for the initial investments in 4 years and 2 months, which is also beneficiary.

CASE NO: 5 (Estimated Selling Price ,No Cost Reduction) Table No:6Calculation of CFAT(Profit After Tax Before Depreciation Fy'11-12 (Net Profit) Marginal Profit - 2 284 less Tax@30% 85 Add Depreciation 67 CFAT 266 Cumulative CFAT 266 Fy'12-13 393 118 67 343 609 Fy'13-14 543 163 67 448 1057 Fy'14-15 542 163 67 447 1503 Fy'15-16 541 162 67 446 1950

FINDINGS:The project with the current estimated selling price may get the pay back for the initial investments in 3 years, but may increase the selling price at a higher level.

CASE NO: 5A (Estimated Selling Price ,No Cost Reduction) Table No:7Calculation of CFAT(Profit After Tax Before Depreciation Fy'11-12 Fy'12-13 (Net Profit) Marginal Profit - 2 194 268 less Tax@30% 58 80 Add Depreciation 67 67 CFAT 203 255 Cumulative CFAT 203 458 Fy'13-14 370 111 67 327 785 Fy'14-15 370 111 67 326 1111 Fy'15-16 369 111 67 326 1437

FINDINGS:The project with the current estimated selling price may get the pay back for the initial investments in 4 years , but may increase the selling price at a higher level, and even reduces the net profit rate.

CONCLUSION

Chapter No: 6 Conclusion

1. Case-1 & Case-2 will incur losses in subsequent years. Hence are not desirable. 2. Case-3 will Payback period is over 11 years. Hence not desirable.

3. Case-4 is estimated with 15% to 18% increase in present selling price so as to Net profit of 10% .Payback period will be 3year 1months. Hence Desirable. 4. Case-4A is estimated with 11% to 14% increase in present selling price so as to Net profit of 7% .Payback period will be 4year 2months. Hence Desirable. 5. Case-5 is estimated with 19% to 23% increase in present selling price so as to Net profit of 10% .Payback period will be 3years. 6. Case-5A is estimated with 15% to 19% increase in present selling price so as to Net profit of 7% .Payback period will be 4years.

Comparision Of Net ProfitEach case shows the level of net profit from the business over 5 years.

Comparision Of Gross Profit

Descript CaseCase-1 Case-2 Case-3 Case-4 ion 4A Estimat Present Present Present ed Selling Selling Selling Selling Price Price Price Price 15% to Price 18% in Increas ------------first e year Selling Price Peak 55k Volume 100k 55k 55k Estimat ed Selling Price 11% to 14% in first year 55k

Case-5 Estimat ed Selling Price 19% to 23% in first year 55k

Case5A Estimat ed Selling Price 15% to 19% in First year 55k Present Material Cost

Present Present Material Reduce Reduce Material Materia Cost d by 2% d by 2% Cost l Cost Reduce Reduce d from d from Convers Rs. Rs. Rs. Rs. ion Cost 5,500 5,500 5,500 to 5,500 to Rs. Rs. 3,400 3,400 Royalty Rs. Cost 1,600 Gross Profit Net Profit Pay Back Period 2% in all years -9% to -3% in 5years Rs. 1,600 2% in all years -9% to -2% in 5years Rs. 1,600 7% in all years -4% to 1% in 5years Rs. 1,600

Present Reduce Material d by 2% Cost Reduce d from Rs. Rs. 5,500 to 5,500 Rs. 3,400 Rs. 1,600 Rs. 1,600

Rs. 5,500

Rs. 1,600

20% to 17% to 20% to 17% to 15% in 12% in 15% in 12% in 5years 5years 5years 5years 10% in 7% in all 10% in 7% in all all years years all years years 4years

3 years 4 years Cannot Cannot Over 11 1 2 3years be met be met years months months

OVER ALL COMPARISON AND CONCLUSION OF EACH PROJECT WITH THE CHANGE IN EXPENDITURE, SELLING PRICE AND PROFITS.

ANNEXURE

MODEL OF P15 MODEL OF P15

MODEL OF P15

Documents

Revenue Fore Casting