Corporate Finance

302
Corporate Finance

Presently the company has the following jobs at hand:

Sr. Description of Name and address
No. work of the employer Value

1. Hydraulic dredging of oil jetty Paradip Port Trust, Paradip 13.85


2. Back filling of trench for Lakshmi Hyundai Heavy Industries Co. Ltd. 0.92
   oil field Phase-1 project


3. Area grading and filling at DJB’s 635 MLD Delhi Jal Board through M/s Simplex 1.5
   Water Treatment Plant and associated Concrete Piles (India) Limited
   works at Sonia Vihar, Delhi


4. Time charter of dredger in Inland Waterways Authority of India, 2.37
   national waterway No.1 Noida
   5 Dredging underneath the berth and also M/s Skanska Cementation India Ltd, Kolkata 1.11
   in front of the berth at Mundra port for GAPL


5. Hydraulic landfill area near main Yamuna Noida Toll Bridge Co. Ltd., Noida, UP 1
   bridge on Delhi-Noida toll bridge


6. Construction of flyover at the intersection Delhi Development Authority, Delhi 1.78
   of NH24-Noida road. Construction of
   embankment and area filling by dredging
   of sand from Yamuna river bed including
   stone pitching and filling of earth on top of
   sand for slip roads and filled up area

Bankers typically perform a sensitivity analysis of the performance. Shown here is a sensitivity analysis of
BDCL’s performance under various scenarios (Rs crore):

Scenario I Scenario II Scenario III

base case estimates (drop in sales by (drop in sales by

for 2001–02 10 percent) 20 percent)

Sales 25.69 23.12 20.55
PBILDT 9.42 8.15 7.11
PBT 1.10 –0.39 –1.43
PAT 1.02 –0.475 –1.515
PBILDT/Net sales (percent) 36.67 percent 35.25 percent 34.59 percent
PAT/Net sales (percent) 3.97 percent

PRESENT PROPOSAL

BDCL’s working capital credit facilities were reviewed through a short review note on March 6, 2002. In
view of the same anticipated order, ICICI’s executives did not take up a detailed proposal. Accordingly, the
following limits were proposed for sanction:

(Rs crore)

Name of the Present limits Proposed limits
bank FB NFB percent FB NFB percent

ICICI Bank 2.00 8.00 100 3.00 10.00 100
Total 2.00 8.00 100 3.00 10.00 100