PVR LIMITED

Foot Notes Summary Report

PVR Limited is a public limited Company domiciled in India and incorporated under the provisions of the Indian Companies Act and its equity shares are listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) in India. The Group is engaged in the business of Movie exhibition, distribution & production and also earns revenue from in-house advertisement, sale of food & beverages, gaming and restaurant business.

  • Other Income

    The company’s other income includes Government Grants, Interest earned on bank deposits and NSC investments. Interest income on financial assets is measured using Effective Interest Rate (EIR). It also included exchange differences, Profit on sale of Movie on demand (Vkaoo) platform and other non operating income.

  • Cost Recognition

    The direct cost of the company includes movie exhibition, distribution cost, consumption of food and beverages. The company recognises cost when incurred and classify it accordingly.

  • Employee Benefits Expense

    Employee Benefits includes salaries, wages, allowances and bonus. It also comprises of post-employment benefit plans in the form of Contribution to Provident Fund, Employee Stock Option Scheme, Gratuity funds, compensated absences and staff welfare expenses. 

  • Finance Cost

    Finance Cost includes interest on borrowings from debentures, term loans, banks, other financial charges and interest on finance lease obligation.

  • Depreciation & Amortisation

    The company follows Straight-line method for depreciating its items of property, plant and equipment and amortise intangible assets over the useful life of the respective asset. The estimated useful life of the assets are generally in line with the useful lives. However, in case of few assets management estimates different useful life to depreciate an asset where management believes that estimated useful lives are realistic and reflect fair approximation of the period. 

  • Other Operating Expenses

    Other operating expenses mainly includes rent, common area maintenance, electricity, legal and professional fees, travel expenses, repairs and maintenance and other expenses.

  • Exceptional Items

    Exceptional Item includes loss incurred on sale of investment in PVR BluO Entertainment Limited and business acquisitions related cost accounted as per Ind AS  103 ‘Business Combination’.

  • Earnings Per share

    The company presents basic and diluted earning per share data for its ordinary shares. Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the period. Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding for the effects of all dilutive potential ordinary shares unless the effect is anti-dilutive.

  •  Tax Expense

    Income Tax Expense comprises of Current and Deferred Taxes. Current income-tax is measured at amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961. Deferred Tax arises due to differences in WDV block under Income Tax and Books of Accounts, carry forward of losses and unabsorbed depreciation and adjustment on account of sale of Investment.

  • Property, Plant & Equipment

    PPE are stated at cost less accumulated depreciation and   impairment losses. Borrowing cost relating to PPE which takes substantial period of time to get ready for intended use is also capitalised. Cost of PPE not ready for intended use as at the reporting date is disclosed as Capital work-in-progress.

  • Goodwill

    Goodwill is initially measured at cost which is represented by excess of consideration paid over the net assets acquired on business combination. Goodwill is tested for impairment annually and is further carried at cost less accumulated impairment losses, if any.

  • Other Intangible assets

    Other Intangible assets includes Software, Trademarks and Copyrights and film right’s initially recognised at cost and subsequently carried at cost less accumulated amortisation, if any. Further, any subsequent expenditure is capitalised when it is probable that future economic benefit flow to the enterprise.

  • Equity accounted investees

    Comprises of investment in joint ventures accounted for using the Equity method. They are initially recognised at cost and subsequently includes the Group’s share of profit or loss and OCI of equity-accounted investees.

  • Investments

    Includes non-current and current investments consisting of Quoted equity shares valued at Fair Value through Other Comprehensive Income because company intends to hold it for long term and Unquoted Government securities valued at amortised cost in the form of National Savings Certificate deposited with various state authorities respectively.

  •  Other Financial Assets

    Includes government grant receivable, revenue earned but not billed, security deposit, non-current bank balances and interest accrued on fixed deposits and NSC’s recognised initially at fair value, subsequently measured at amortised cost or FVTPL or FVTOCI depending upon the conditions to be met for debt instrument.

  • Deferred Tax Assets

    Deferred Tax assets includes MAT credit entitlement arising due to impact of expenditure charged to statement of profit and loss but allowable for tax purposes on payment basis, allowance for doubtful debts and advances.

    • Other non current assets

      Other non current assets includes capital advances, prepaid expenses, deferred rent, advance income tax and balances with statutory authorities.

    • Inventories

      The company values inventories at lower of cost and  net realisable value, where cost for food and beverages is determined on weighted average basis and cost of stores and spares is determined on First in First Out (FIFO) basis.

    • Trade Receivables

      Trade Receivables are derived from revenue earned from customers which are unsecured. It also includes receivables from Debit/Credit card companies and online movies ticketing partners which are realisable within a period of 1 to 3 working days. The company impairs its trade receivables on the basis of past experience and trend.

    • Loans

      The company has lent amount to employees and other body corporate in the form of unsecured loan.

    • Equity Share Capital

       The company has only one class of Equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The company has also provided stock options to its employees. The company’s authorised share capital also includes 0.001% non-cumulative convertible preference shares of Rs. 341.52 per share.

    • Other Equity

      Other equity includes securities premium, share option outstanding account on equity settled share based payment transaction with employees, debenture redemption reserve, capital reserve created under the scheme of business combination, general reserve and retained earnings.

    • Non Controlling Interest

      Are measured at their proportionate share of the acquiree’s net identifiable assets at the date of acquisition. The non controlling interest is contributed by Zea Maize Private Limited where the parent holds 70 percent shareholding as on 31st March’ 18.  

    • Borrowings

      Interest-bearing loans and borrowings are initially recognised at  fair value and subsequently measured at amortised cost using the Effective interest rate method.

    • Provisions

      Includes provision for gratuity and leave benefits. The provisions are determined based on best management estimate and are not discounted to their present value.

    • Trade Payables

      Are recognised initially at their fair value and subsequently measured at amortised cost using effective interest method.

Nilkamal Company’s Report

ABOUT THE COMPANY

Nilkamal is a plastic product manufacturing company based in Mumbai, India. It is the world’s largest manufacturer of moulded furniture and Asia’s largest processor of plastic moulded products. The company also has a chain of retail stores under the @home brand. Also, the company is listed on the NSE and BSE since 1991.

HISTORY

Years – Events

1985 – Nilkamal as a company, was incorporated on 5th December

1990 – The company changed its name to “Nilkamal Plastic” on 23rd August

NILKAMAL’S CORE BUSINESSES

Material Handling Solution      – Nilkamal Home Ideas, Home Furnishing Store

Moulded Furniture                      – @home, the Mega Home Store Retail Chain

– Nilkamal Mattrezzz                  – Bubbleguard Solutions

MARKET

Nilkamal has 25 branches spread across the country in India. Also, the company has 8 large manufacturing plants in India spread across the country.

PARTNERSHIP

  • Nilkamal Ltd. has a joint venture in Sri Lanka with BITO Lagertechnik Bittman GmbH which is Nilkamal Bito Storage Systems Pvt Ltd for manufacturing of automated storage systems in metal.
  • Also, the company has a joint venture with CAMBRO, which is Cambro Nilkamal Pvt Ltd for Hospitality products suited for large restaurants and hotels.

ECONOMIC CONDITIONS

  • 2017-18 has been an eventful year overall for the Indian economy with long awaited nationwide rollout of GST. Disruptions and anxiety due to perceptions, certain lack of clarity and overall adaptation of HSN based tax rates though affected the Business in 2nd/3rd quarter, have now been overcome and settled. 
  • The Indian economy is poised to grow at a rate of 7.4% in 2018-19 as projected by IMF, after an estimated 7% growth in 2017-18.

LEADERSHIP

Nilkamal Company’s leadership lies in the hands of following key persons –

Mr. Vamanrai Parekh – Cofounder, Promoter and Chairman of Board of Directors of Nilkamal Group

Mr. Sharad Parekh – Managing Director of Nilkamal Group

Mr. Hiten V Parekh – Promoter and Joint Managing Director of Nilkamal Group

Mr. Manish Parekh – President and Executive Director (Furniture) of Nilkamal Group

Mr. Nayan Parekh – President and Executive Director (Material Handling) of Nilkamal Group

COMPANY FINANCIALS

KEY PERFORMANCE INDICATORS

(Rs in Crores)

Particulars 2017 2018
Total Revenue 1968.66 2078.9
Total Expenses 1799.74 1900.14
Profit/Loss Before Tax 168.92 178.76
Total Tax Expenses 50.46 61.65
Profit/Loss For The Period 118.45 117.11
Earnings Per Share 79.38 78.48

Net revenue of the company has rose from Rs. 1968.66 crores to Rs. 2078.9 crores showing a growth rate of 5.59%. EBIT of company has also increased by a rate of 5.57% but EAT has decreased with a rate of 1.13%. Also EPS of the company’s shares has decreased from the last year as it was 79.38 last year and this year it has reached 78.48.

BALANCE SHEET

(Rs in Crores)

The capital in the company remains the same as last year and the company has proposed to transfer Rs. 782.25 crores to the reserves which is higher from last year by 14.66%. The total liabilities of the company has increased from last year and so has the assets of the company. Liabilities showed a growth of 13.85% while assets increased at a rate of 14.19%.

Particulars 2017 2018
Total Share Capital 14.92 14.92
Reserves and Surplus 682.21 782.25
Total Shareholders’ Funds 697.13 797.18
Total Non-Current Liabilities 59.94 69.46
Total Current Liabilities 275.79 312.78
Total Capital And Liabilities 1032.86 1179.42
Total Non-Current Assets 364.09 407.49
Total Current Assets 668.77 771.93
Total Assets 1032.86 1179.42

CASH FLOW STATEMENT

(Rs in Crores)

Particulars 2017 2018
Net Profit/Loss Before Extraordinary Items And Tax 168.92 178.76
Net Cashflow From Operating Activities 99.48 110.9
Net Cash Used In Investing Activities -63.99 -86.56
Net Cash Used From Financing Activities -36.84 -20.36
Net Inc/Dec In Cash And Cash Equivalents -1.36 3.98
Cash And Cash Equivalents at the Beginning of Year 6.58 5.23
Cash And Cash Equivalents at the End Of Year 5.23 9.21

In the beginning of the year, company had Rs. 5.23 crores of liquid assets with them which had increased over the year and reached to Rs. 9.21 crores at the end of the financial year 2017-18. Total increase in cash and cash equivalents from the last year is 76% approx. Also, company has generated Rs. 110.9 crores from operating activities and used Rs. 86.56 crores in investing and Rs. 20.36 crores in Financing activities respectively at the end of FY 2017-18.

Written By : Vishakha Bais

Eicher Motors Limited

Eicher Motors Limited

Eicher Motors Limited
CIN No.: L34102DL198PLC129877
Regd. Office: 3rd floor, Select Citywalk
A-3, District Centre, Saket, New Delhi- 110017
Phone No.: +91-124-7102900
Email: info@eicher.in
Name of the Company: Eicher Motors Limited
Listed on BSE and NSE
NSE Code: EICHERMOT
BSE Code: 505200
Market Cap: INR 74,492.67 Cr.
Revenue: INR 7939.45 Cr.
Profit: INR 1664.65 Cr.
Current Market Price on NSE: INR 27328.15
Current Market Price on BSE: INR 27350.10
Website:www.eicher.in

Introduction

Eicher Motors Limited(EML) is the flagship company of the Eicher group. EML is the leading player in the Indian Automotive space. It operates in 3 distinct business verticals- Motorcycles, Commercial Vehicles and Personal Utility Vehicles.EML owns the iconic Royal Enfieldmotorcycle business, which leads the premium motorcycle segment in India. The oldest motorcycle brand in continuousproduction world-wide, Royal Enfield has witnessed a huge surge in demand in the recent past and is charting its courseto be the leading player in the mid-sized motorcycle segment globally. EML’s joint venture with the Volvo group, VE Commercial Vehicles Limited, designs, manufactures and markets reliable, fuel efficient trucks and buses; and is leadingthe path in driving modernization in commercial transportation in India and other developing markets. EML’s 50:50 strategic jointventure with USA-based Polaris Industries Inc. formed in 2012, Eicher Polaris Private Limited launched the Multix, a new3-in-1 vehicle purpose built for the independent businessman in June, 2015.

Product Portfolio

  1. A division of EML, Royal Enfield has created the mid-size motorcycle segment in India. Royal Enfield’s product line-up includes
  2. Bullet
  3. Classic
  4. Thunderbird
  5. Continental GT
  6. Himalayan
  7. Interceptor

Further in 2012 Royal Enfield launched Royal Enfield Gears.

In January 2018, Royal Enfield has setup its First Royal Enfield Garage Café in Goa. The Garage Cafe is a massive 120-seater cafe and also has a Royal Enfield motorcycle museum-and-exhibition area, an exclusive gear store, a motorcycle customization area and a service bay.

  • VE Commercial Vehicles Ltd. JV of EML and Volvo group deals in complete range of commercial vehicles which include
  • Eicher Light to Medium Duty Trucks (5-15 tonne)
  • Eicher Heavy Duty Trucks (16 tonne +)
  • Volvo Trucks including Mining and Tunnel Trippers
  • Eicher Buses
  • Euro-6 compliant enginemanufactured in VE Powertrain, the first engine plant in India producing Euro-6 compliant engine.
  • Strategic supplier of drive line components and aggregates to Escorts, Mahindra, Voltas, Royal Enfield etc.
  • In 2012 EML signed a strategic JV agreement with Polaris Industries Inc. to design, manufacture and sell full new range of personal vehicle. In 2013, the JV company Eicher Polaris Private Limited set-up its manufacturing facility in Jaipur, Rajasthan. Its first vehicle was launched in 2015 named “MULTIX” which was India’s first personal utility vehicle which can be used as people carrier, cargo carrier and power generator.

Infrastructure Facility

  1. Royal Enfield
  2. Royal Enfield has 3 manufacturing plants in Chennai having total capacity of 8,25,000 units in F.Y. 2017-18 which will be 9,00,000 units in F.Y. 2018-19.
  3. It has 2 Technology centres in Chennai and UK.
  4. Presently total dealers in India are 761. They are planning to increase No. of dealers to 825 by March 2018.
  5. It has 35 exclusive stores overseas.
  6. VECV
  7. In Pithampur it has
  8. Commercial Vehicle Manufacturing Plant having capacity of 84,000 trucks and buses, and scalable up to 1,00,000 trucks and buses
  9. VE Powertrain Facility having current capacity of 50,000 engines, scalable up to 1,00,000 engines and it has already started supplying Euro-6 compliant engine to Europe over 3,000 per month.
  10. Eicher Engineering Component has production facilities at Thane, Dewas and SEZ, Pithampur for components and aggregates for VECV, Escorts, Mahindra, Royal Enfield etc.
  11. In Baggad, MP it has bus body plant.
  12. No. of dealers are 299 including 15 Company Owned Company Operated (COCO) outlets.
  13. It has 22 distributors, 161 Eicher Genuine Parts Shoppe and 2,283 multi-brand parts retailers
  14. It has 224 GPS enabled Vans and 29 Container Set up Sites.
  15. In 10 Months of F.Y. 2017-18 export of Commercial Vehicle is 6723 units.
  16. Eicher Polaris Private Ltd
  17. It has manufacturing facility at Jaipur having capacity of 60,000 units per annum and which can be expanded up to 1,20,000 units equipped with robotic weld lines and in-house paint system.
  18. It has 97 domestic stores and it is focusing on nearby International markets such as Nepal, Bangladesh and Sri Lanka.

Employee Details (As of December 2017)

Sr. No. Company Name No. of Employees
1 Eicher Motors Limited 2910 (excluding outsourced)
2 VE Commercial Vehicles Limited 4827 (permanent)
3 Eicher Polaris Private Limited 420+

Director Details

Eicher Motors Limited VE Commercial Vehicles Limited Eicher Polaris Private Limited
S. Sandilya Non-executive Chairman HakanKarlsson Chairman Michael D. Dougherty Chairman
Siddhartha Lal Managing Director & CEO VinodAggarwal Managing Director & CEO PankajDubey CEO & Whole Time Director
MJ Subbaiah Independent Director Siddhartha Lal Eicher Nominated Director Siddhartha Lal Eicher Nominated Director
PrateekJalan Independent Director Jacques Michel Volvo Nominated Director Lalit Malik Eicher Nominated Director
ManviSinha Independent Director Philippe Divry Volvo Nominated Director B Govindarajan Eicher Nominated Director
  Raul Rai Eicher Nominated Director Michael Todd Speetzen Polaris Nominated Director
  PrateekJalan Independent Director  
  Lila Poonawalla Independent Director  

Group Structure

List of Subsidiaries

Sr. No. Name of Subsidiary
1 VE Commercial Vehicles Ltd (VECV)
2 VECV Lanka (Private) Ltd
3 VECV South Africa (PTY) Ltd
4 Royal Enfield BrasilComercio de MotocicletasLtda
5 Royal Enfield North America Limited (RENA)
6 Royal Enfield Canada Limited
7 Eicher Group Foundation (Sec. 8 Company)

Joint Venture

  1. Eicher Polaris Private Limited

Recent Updates

  1. Eicher launched first ever Skyline Pro Electric buses in collaboration with KPIT’s Revolvo Technology.
  2. In January 2018, Royal Enfield has setup its First Royal Enfield Garage Café in Goa. The Garage Cafe is a massive 120-seater cafe and also has a Royal Enfield motorcycle museum-and-exhibition area, an exclusive gear store, a motorcycle customization area and a service bay.
  3. In April, 2017, Royal Enfield had opened a direct distribution subsidiary in Brazil, as well as its first exclusive store in Sao Paulo.
  4. Royal Enfield will be launching the twin-cylinder new motorcycles Interceptor 650 and Continental GT 650cc in India in the summer of 2018.
  5. Royal Enfield, a division of Eicher Motors, has started commercial production from its new manufacturing facility at Vallam Vadagal near Chennai. This plant will be Royal Enfield’s third facility.
  6. Eicher announced its new range of light and medium (LMD) trucks in Indian market to meet the rapid transportation demand of the e-commerce industry. The company introduced 5 new variants in the Pro 1000 andPro 3000 series.
  7. VE Commercial Vehicle (VECV) holds 100% equity in Eicher Engineering Solutions Inc., USA (EESI). EESI holds 100% equity in Eicher Engineering Solutions (Shanghai) Co. Ltd. and Eicher Engineering Solutions (Beijing) Co. Ltd. On March 17, 2017, VECV has disinvested 100% holding in EESI for $1.85 million. Accordingly, EESI and its wholly owned subsidiaries of Shanghai and Beijing have ceased to be subsidiaries of VECV, and in turn, have also ceased to be subsidiaries of Eicher Motors Limited.

Guided By: Juhi Bhandari

Written By: Piyush Jain

Five Forces Report

Balaji Telefilms Limited

The Indian Media and Entertainment (M&E) industry is a sunrise sector for the economy and is making high growth strides. Proving its resilience to the world, the Indian M&E industry is on the cusp of a strong phase of growth. The entertainment industry continues to be dominated by the television segment, with the segment accounting for 44.24 per cent of revenue share in 2016, which is expected to grow further to 48.18 per cent by 2021.

Balajitelefilms limited is a leading content provider in the Indian entertainment industry and has been in business since 23 years.  It has its business diversified in television industry, motion pictures and digital media. The company occupies a dominant space in the television content creation space, with the No.1 show on Indian television to its credit and all of its shows among the Top 50 on television. Currently its producer of several leading serials on major channels like Star Plus, 9X, Sony TV, Zee TV and SUN TV network.

Competitive Forces and Balaji Telefilms Ltd

Threat of new entrants:

Television content production is a capital intensive business and requires reasonably high capital investment. There are also many regulatory requirement related to the content produced. Balaji telefilms limited already has around 250+ hour of premium original and exclusive content.  Also, production and distribution of motion pictures too need high investment. Making the barriers to enter production and distribution channel very high.

Threat of substitute:

In the current scenario there is threat to television shows from the digital media, younger generation shifting to online series rather than television shows. Making the threat of substitute high, althoughBalaji telefilms limited has diversified in digital media and launched ALTbalaji, the subscription based entertainment platform with six new shows and planning to add new shows every month, in order to mitigate the threat.

Bargaining power of buyers:

Balaji Telefilms limited sells it content to different broadcasters namely star TV, ZEE and Viacom. Since it is able to command higher TRP, hence, bargaining higher margin from broadcasters compared to its peers. Although due to some tie ups with certain broadcaster it has to sell and air its content on prime slot to that specific broadcaster. Therefore, making the bargaining power of buyers moderate.

Bargaining power of seller:

The suppliers in this case are the actors. Balaji Telefilms, being the largest entertainment software provider, evinces a lot of interest from aspiring actors who are eager to work with it. Thus the bargaining power of the aspiring actors is very low. However, once these aspirants become household names their demands increase resulting in higher salary costs to the company. Hence, the bargaining power is moderate.

Rivalry between existing players:

The rivalry between production houses is high and they try to poach each other’s actors, creative personnel and technicians. Since, Balaji telefilms is at leader’s position it easily attracts new talent and retention of current buyers and suppliers is easy.  Further, they plan to earn the Intellectual Property (IP) rights of all the content that they create as to own it. By this making the rivalry forces low.

Guided By: Juhi Bhandari

Written By: Sunaina Vaidya

PPMT

Returns the payment on the principal for a given period for an investment based on periodic, constant payments and a constant interest rate.

Syntax
PPMT(rate,per,nper,pv,fv,type)
For a more complete description of the arguments in PPMT, see PV.
Rate is the interest rate per period.Per specifies the period and must be in the range 1 to nper.

Nper is the total number of payment periods in an annuity.

Pv is the present value — the total amount that a series of future payments is worth now.

Fv is the future value, or a cash balance you want to attain after the last payment is made. If fv is omitted, it is assumed to be 0 (zero), that is, the future value of a loan is 0.

Type is the number 0 or 1 and indicates when payments are due.
Set type equal to If payments are due
0 or omitted At the end of the period
1 At the beginning of the period

Remark
Make sure that you are consistent about the units you use for specifying rate and nper. If you make monthly payments on a four-year loan at 12 percent annual interest, use 12%/12 for rate and 4*12 for nper. If you make annual payments on the same loan, use 12% for rate and 4 for nper.

Examples
The following formula returns the principal payment for the first month of a two-year $2,000 loan at 10 percent annual interest:
PPMT(10%/12, 1, 24, 2000) equals -$75.62
The following function returns the principal payment for the last year of a 10-year $200,000 loan at 8 percent annual interest: PPMT(8%, 10, 10, 200000) equals -$27,598.05

Interest Payment(IPMT)

Returns the interest payment for a given period for an investment based on periodic, constant payments and a constant interest rate. For a more complete description of the arguments in IPMT and for more information about annuity functions, see PV.

Syntax
IPMT(rate,per,nper,pv,fv,type)

Rate is the interest rate per period.
Per is the period for which you want to find the interest and must be in the range 1 to
nper.

Nper is the total number of payment periods in an annuity.

Pv is the present value, or the lump-sum amount that a series of future payments is worth right now.

Fv is the future value, or a cash balance you want to attain after the last payment is made. If fv is omitted, it is assumed to be 0 (the future value of a loan, for example, is 0).

Type is the number 0 or 1 and indicates when payments are due. If type is omitted, it is assumed to be 0.
Set type equal to If payments are due
0 At the end of the period
1 At the beginning of the period

Remarks

• Make sure that you are consistent about the units you use for specifying rate and nper. If you make monthly payments on a four-year loan at 12 percent annual interest, use 12%/12 for rate and 4*12 for nper. If you make annual payments on the same loan, use 12% for rate and 4 for nper.

• For all the arguments, cash you pay out, such as deposits to savings, is represented by negative numbers; cash you receive, such as dividend checks, is represented by positive numbers.

Examples
The following formula calculates the interest due in the first month of a three-year $8000
loan at 10 percent annual interest:
IPMT(0.1/12, 1, 36, 8000) equals -$66.67
The following formula calculates the interest due in the last year of a three-year $8000
loan at 10 percent annual interest, where payments are made yearly:
IPMT(0.1, 3, 3, 8000) equals -$292.45

Payment(PMT)

Calculates the payment for a loan based on constant payments and a constant interest rate.

Syntax

PMT(rate,nper,pv,fv,type)
For a more complete description of the arguments in PMT, see PV.
Rate is the interest rate for the loan.

Nper is the total number of payments for the loan.

Pv is the present value, or the total amount that a series of future payments is worth
now; also known as the principal.

Fv is the future value, or a cash balance you want to attain after the last payment is
made. If fv is omitted, it is assumed to be 0 (zero), that is, the future value of a loan is 0.

Type is the number 0 (zero) or 1 and indicates when payments are due.
Set type equal to If payments are due
0 or omitted At the end of the period
1 At the beginning of the period

Remarks

• The payment returned by PMT includes principal and interest but no taxes, reserve payments, or fees sometimes associated with loans.

• Make sure that you are consistent about the units you use for specifying rate and nper. If you make monthly payments on a four-year loan at an annual interest rate of 12 percent, use 12%/12 for rate and 4*12 for nper. If you make annual payments on the same loan, use 12 percent for rate and 4 for nper.

Tip To find the total amount paid over the duration of the loan, multiply the returned PMT value by nper.

Examples
The following formula returns the monthly payment on a $10,000 loan at an annual rate of 8 percent that you must pay off in 10 months:
PMT(8%/12, 10, 10000) equals -$1,037.03
For the same loan, if payments are due at the beginning of the period, the payment is:
PMT(8%/12, 10, 10000, 0, 1) equals -$1,030.16
The following formula returns the amount someone must pay to you each month if you
loan that person $5,000 at 12 percent and want to be paid back in five months:
PMT(12%/12, 5, -5000) equals $1,030.20
You can use PMT to determine payments to annuities other than loans. For example, if you want to save $50,000 in 18 years by saving a constant amount each month, you can use PMT to determine how much you must save. If you assume you’ll be able to earn 6 percent interest on your savings, you can use PMT to determine how much to save each
month.
PMT(6%/12, 18*12, 0, 50000) equals -$129.08
If you pay $129.08 into a 6 percent savings account every month for 18 years, you will
have $50,000.

FUTURE VALUE (FV)

Returns the future value of an investment based on periodic, constant payments and aconstant interest rate.

Syntax
FV(rate,nper,pmt,pv,type)
For a more complete description of the arguments in FV and for more information onannuity functions, see PV.
Rate is the interest rate per period.

Nper is the total number of payment periods in an annuity.

Pmt is the payment made each period; it cannot change over the life of the annuity. Typically, pmt contains principal and interest but no other fees or taxes. If pmt is omitted,
you must include the pv argument.

Pv is the present value, or the lump-sum amount that a series of future payments is worth right now. If pv is omitted, it is assumed to be 0 (zero), and you must include the
pmt argument.

Type is the number 0 or 1 and indicates when payments are due. If type is omitted, it is
assumed to be 0.
Set type equal to If payments are due
0 At the end of the period
1 At the beginning of the period

Remarks

• Make sure that you are consistent about the units you use for specifying rate and nper. If you make monthly payments on a four-year loan at 12 percent annual interest, use 12%/12 for rate and 4*12 for nper. If you make annual payments on the same loan, use 12% for rate and 4 for nper.

• For all the arguments, cash you pay out, such as deposits to savings, is
represented by negative numbers; cash you receive, such as dividend checks, is represented by positive numbers.

Examples
FV(0.5%, 10, -200, -500, 1) equals $2581.40
FV(1%, 12, -1000) equals $12,682.50
FV(11%/12, 35, -2000, , 1) equals $82,846.25

Suppose you want to save money for a special project occurring a year from now. You deposit $1,000 into a savings account that earns 6 percent annual interest compounded monthly (monthly interest of 6%/12, or 0.5%). You plan to deposit $100 at the beginning of every month for the next 12 months. How much money will be in the account at the end of 12 months?

FV(0.5%, 12, -100, -1000, 1) equals $2301.40

PRESENT VALUE (PV)

Returns the present value of an investment. The present value is the total amount that a series of future payments is worth now. For example, when you borrow money, the loan amount is the present value to the lender.

Syntax

PRESENT VALUE (PV)
(rate,nper,pmt,fv,type)

Rate is the interest rate per period. For example, if you obtain an automobile loan at a 10percent annual interest rate and make monthly payments, your interest rate per month is10%/12, or 0.83%. You would enter 10%/12, or 0.83%, or 0.0083, into the formula as therate.

Nper is the total number of payment periods in an annuity. For example, if you get afour-year car loan and make monthly payments, your loan has 4*12 (or 48) periods. Youwould enter 48 into the formula for nper.

Pmt is the payment made each period and cannot change over the life of the annuity. Typically, pmt includes principal and interest but no other fees or taxes. For example, themonthly payments on a $10,000, four-year car loan at 12 percent are $263.33. You wouldenter -263.33 into the formula as the pmt. If pmt is omitted, you must include the fvargument.

Fv is the future value, or a cash balance you want to attain after the last payment ismade. If fv is omitted, it is assumed to be 0 (the future value of a loan, for example, is 0).For example, if you want to save $50,000 to pay for a special project in 18 years, then$50,000 is the future value. You could then make a conservative guess at an interest rateand determine how much you must save each month. If fv is omitted, you must includethe pmt argument.

Type is the number 0 or 1 and indicates when payments are due.
Set type equal to If payments are due
0 or omitted At the end of the period
1 At the beginning of the period

Remarks

• Make sure that you are consistent about the units you use for specifying rate andnper. If you make monthly payments on a four-year loan at 12 percent annualinterest, use 12%/12 for rate and 4*12 for nper. If you make annual payments onthe same loan, use 12% for rate and 4 for nper.

• The following functions apply to annuities:
CUMIPMT PPMT
CUMPRINC PV
FV RATE
FVSCHEDULE XIRR
IPMT XNPV
PMT

• An annuity is a series of constant cash payments made over a continuous period.For example, a car loan or a mortgage is an annuity. For more information, see the description for each annuity function.

• In annuity functions, cash you pay out, such as a deposit to savings, is represented by a negative number; cash you receive, such as a dividend check, is represented by a positive number. For example, a $1,000 deposit to the bank would be represented by the argument -1000 if you are the depositor and by the argument 1000 if you are the bank.

• Microsoft Excel solves for one financial argument in terms of the others. If rate is not 0, then:If rate is 0, then: (pmt * nper) + pv + fv = 0

Union Budget 2016-17 And It’s Impact on CEMENT INDUSTRTY

Introduction—
Our honorable Finance minister presented the Union Budget 2016-17 on 29th day of February 2016. The Jaitley’s budget turned out to be positive for some sectors and negative for the others.
At 3PM, the BSE Sensex was trading over 100 points, while the nifty50 was testing 7000 levels. Cement counter was in focus after key budget announcement. Stocks such as Andhra Cement, mangalam cement, Katwa Udyog and Heidelberg Cements climbed up to 10% in trade. ACC, Ultratech, Ambuja Cements on the other hand, were quoting marginally lower.

The Impact on Industry—
Here’s what Mr. Jaitley announced in the union budget and its impact on cement sector as a whole.
Higher spend on infrastructure segments such as roads and highways, irrigation and push to ‘Housing for All’ scheme. The total outlay for infrastructure sectoris pegged at Rs.221246 crore in FY17. The government has announced a 100% deduction for profits to an undertaking in housing project for flats upto 30sq. metres in four metro cities and 60sq. metres in other cities, approved during June 2016 to March 2019 and completed in three years. Impact: Positive for Cement Industry

Rise in allocation under Pradhan Mantri Gram Sadak Yojana: The allocation towards the scheme has been increased to Rs 19000 crore for FY17. The government has pledged to connect remaining 65000 eligible habitations by 2019. Impact:positive For Cement Industry

Extension of excise duty exemption: At present the excise duty exemption is available to concrete mix manufactured at site for use in construction work to ready mix concrete. Impact: Positive For cement Industry

Exemption of Service Tax: construction of affordable houses up to 60 square metres under any scheme of the central or state govt including PPP schemes will be exempt from Service tax. Impact: Positive for Cement makers.

No change in Exercise duty structure: At present the excise duty is levied in the form Cement is taxed at 12.5% ad valorem and additionally Rs 125 per mt, with 30% abatement. Jaitley in his Budget did not tinker with excise duty structure for the sector. Impact: Neutral for all cement Makers

No talk of GST bill. Impact: neutral for all cement makers as the pay 25-26% in indirect taxes.

Background:
Cement demand growth has largely lagged the expectation during FY16 due to slow pick up in infrastructure projects as well as lack of demand from rural sector. India Rating pointed out that cement demand has registered a single digit growth rate in the last six financial years, with the weakest growth in the decade of 2.2% during April-December 2015. The rating agency has estimated cement demand to grow by mere 3% in FY16, compared with 5.6% in FY15.
Rural housing generates around 40% of cement demand, urban housing derives 20-25 of cement demand, contruction/infrastruction/industrial activities lead to 25% of cement demand, while the rest 10% demand is contributed by commercial real estate sector. The budget announcements may/may not bring some relief to the sector.

The Change/No change in excise duty structure too may fail/boost the sentiment on the counter, as the industry was burdened with high taxes and cost pressure.