------------- A PROJECT REPORT ON

“A STUDY OF COST ANANLYSIS AND PRICING STRATEGIES FOR

MECTURING EASTLAND PVT. LTD , NASHIK, MAHARASHTRA ”
AT
MECTURING PVT. LTD
SUBMITTED TO
“SAVITRIBAI PHULE PUNE UNIVERSITY”
IN PARITAL FULFILLING OF THE REQUIREMENT
FOR THE AWARD OF THE DEGREE OF
FINANCE(MBA).
(2024-2025)

IN PARTIAL FULFILLMET OF THE REQUIREMENT OF

MASTER OF BUSINESS ADMINISTRATION (MBA)
UNDER THE GUIDENCE OF
CMA. ARPITA FEDGE
SUBMITTED BY
AKASH MALI
SUBMITTED TO: NBN SINHGAD SCHOOL OF BUSINESS MANGEMENT,
PUNE 2024-2025
DECLARATION

I undersigned hereby declare that, the project titled “COST ANANLYSIS AND PRICING
STRATEGIES FOR MECTURING SERVICE CENTERS FOR NASHIK MAHARASHTRA ”
is
executed as per the course requirement of a two-year full-time MBA Program of Savitribai Phule
Pune University.

This report has not been submitted by me or any other person to any other University or Institution
for a degree or diploma course. This is my own and original work.

Place –Nashik

Date -

AKASH MALI
MBA-II

Acknowledgment

It is my pleasure to thank all who helped us directly or indirectly in the preparation of this project
report. It is a great privilege to record our deep sense of gratitude to all the faculties who stood by us
throughout the making of this project report. It was very exciting for us to work on the project “COST
ANALYSIS AND PRICING STRATEGIES FOR MECTURING SERVICE CENTERE IN NASHIK .
During this work, I am gaining both practical as well as theoretical knowledge regarding it. My first
thanks go to NBN SINHGAD SCHOOL BUSINESS MANGEMENT, PUNE for providing us with
an excellent environment like computer centre library as well as providing us excellent faculty
guiding for the completion of my project, I am greatly obliged to my project guide Reshma mam for
his benevolent guidance, suggestions, and help for preparing this project.

Place – Nashik
Date –

AKASH MALI
MBA-II

EXECUTIVE SUMMARY

The Pune University of Greater had given the subject of Summer internship Project for
Master of
Business Administration [M.B.A] Semester 3 rd our project report subject is COST
ANANLYSIS FOR MECTURING PVT. LTD NASHIK

Location :
Plot no, 18, behind sbi bank MIDC area, p/3, Satpur colony, Nashik 422003

Duration :
Duration of the project is 2 Months.

Project Title :
“ Cost Analysis and pricing strategics .” The Branch head of the Mecturing Eastland Private
Ltd. Is Mr, Chetan patil who has all information provide about the project Finance and their
function and my subject topic is a study is a study of “cost Analysis and pricing strategies for
MecTuring Service centers in NASHIK” there are various topic i.e. project finance, function of
revenue, cost and debt sheet of the financial model and revenue model for wind power
Project, Residential building, Manufacturing unit and other PPP projects.
INDEX
Sr.No Particulars Page

1. INTRODUCTION 1-6

2. ORGANATION/ COMPANY PROFILE 7-11

3. PRODUCT/SERVICES PROFILE 12-18

4. LITRATURE REVIEW 19-29

5. DATA ANANLYSIS AND INTERPRETATION 30-37

6. CONCLUSION 37-42

LIST OF TABLES
Ds
Table no . Descriptions

1. Project Schedule

2 . CAPX Model

3 . OPEX Model
LIST OF FIGURES
Fig. No. Descriptions
1. Mecturing Eastland pvt. Ltd

2. Organizational Hierarchy and structure

3. Robotic Vacuum Cleaner Project

4. Waste to Energy
5. Sustainable development project

6. Mergers and Acquisitions

7. Cost Analysis

8. CAPX Model

9. OPEX Model

CHAPTER NO :
1
INTRODUTION
1
INTRODUCTION

The Project title as “ cost Analysis” with a view to study the different ratio
of previous 3 years for financial & Constructive decision for “Robotic vacuum
cleaner in Nashik.” Ratio analysis is a major component of financial and taken a
constructive decision for future prospect of a company. Ratio analysis is also the
process of determining & interpreting numerical relationship based on financial
statement of ratio to interpret the financial statement. I have collected primary
and secondary data from financial statement of company and discussion with
various staff member in organization. I have completed summer internship
project from 20th June to 20th Aug2023.
Financial statement that present and organized collection of Financial
data from the bases of financial analysis the highlight significance of
financial ratio analysis the usefulness of the financial ratio to those who
manage a firm as well as to those who are related to it in any way, such as
creditors , investors,
financial analysis and so on in order to avoid duplication, it is discussed here
how the different ratios should be use in order to arrive any one conclusion.
Key components typically found in a project report include

❖ Key components typically found in a project report include:

• Project Summary

• Introduction

• Scope and Objective

• Methodology

• Challenges and Solutions

• Impact and Benefits

• Lessons Learned Budget and Resources • Conclusion and Recommendations

2
OBJECTIVE

• To familiarize with the different departments of the organisation and their function and
activities including function and documentation

• To study the analysis of cost incurred on

❖ operation cost analysis

❖ Raw material
❖ Instrumentation

• To study how to forecast the cost analysis for a large-scale project •

To understand the importance cost analysis.
3
SCOPE OF STUDY

❖ cost analysis in the future assessment of funds required in a project. •

❖ cost analysis should also apply a discount rate, which is the rate at which future
costs and benefits are converted to present values.

4
RESEARCH METHODOLOGY

Meaning and Definition of Research Methodology :

Research methodology is a comprehensive framework that outlines the systematic and
organized approach undertaken to conduct a research study or investigation. It serves as a
roadmap guiding researchers through the various stages of the research process, from
conceptualization to data collection, analysis, and interpretation. Essentially, research
methodology provides the tools, techniques, and procedures necessary for gathering relevant
information, testing hypotheses, and drawing meaningful conclusions.
One fundamental aspect of research methodology is the formulation of a clear research design.
This involves defining the scope and objectives of the study, selecting an appropriate research
approach (quantitative, qualitative, or mixed methods), and designing data collection methods such as
surveys, experiments, interviews, or observations. The design phase is crucial as it determines the
credibility and reliability of the study's findings.

 Data Collection :
The required data for the study is primary as well as secondary, the data are collected directly from
the company.

A) Primary Data :
Primary data refers to information collected firsthand directly from original sources.
This data is gathered specifically for a particular research or study and has not been previously
analysed or interpreted. It involves methods such as surveys, interviews, observations, or
experiments to obtain information directly from the individuals or phenomena being studied.
Primary data is valuable for its freshness and relevance to the specific research question or
objective, providing a foundation for original analysis and insights.

Methods for collection primary Data are :

• Telephonic Interview

• Online survey

5
B) Secondary Data :
Secondary data refers to information that has been collected and documented by someone else
for a purpose other than the current research or analysis at hand. This data is not directly
gathered from the original source by the researcher but rather obtained from existing records,
studies, or databases. Researchers often utilize secondary data to complement or validate their
own findings, saving time and resources compared to collecting primary data. However, it's
crucial to critically assess the reliability and relevance of secondary data, considering factors
like the source's credibility, methodology, and the context in which the data was originally
collected.
Methods for collecting secondary data are :
• From Websites

• Books

• Published Source

CHAPTER NO : 2

ORGANIZATION
PROFILE
7
INFORMATION ABOUT ORGANIZATION

(Fig 2.1)

Mecturing Eastland pvt ltd is an Indian high- tech company, specializing in the
research and development of artificial intelligence technology, smart home systems,
and smart robotic products . Our software and controllers provide the speed,
reliability and security coupled with the power and convenience of connected
services.

Our commitment to new and emerging technologies, our support for established
technologies makes Mecturing the right choice. We firmly believe that every
individual deserves to live intelligently. Everyone deserves a safer, smarter life
and we are providing that intelligence, safety and luxury at time.

8
ORGAZATONAL HIRERECHY AND STRUCTURE
MR.ADITYA MORE
( Founder CEO)

MRS.AMRITA MAM
(Manager HR-Admin)

MR. KEV SIR

( Assistant Operation

Manager)

MR. CHETAN PATIL

( Finance intern)

9
ORGANIZATION OVERVIEW

MECTURING is a high tech company, specializing in the research and development of

artificial intelligence technology, smart home systems, and smart robotic products.
We provide project management consultancy to . Especially Cost Analysis and pricing strategies for
MecTuring service centre project ( Utility Scale Large Sized Projects).

Our Services include;

1. Feasibility Analysis, Detailed Project Report, Financial Analysis (IM)
2. Financial Closure through Debt or private Equity for project Finance.
3. On-site and Off – site Project Management and EPC -Management Services .
4. Documentation and Transaction Services for sale of project.
5. Project Development and Transfer of Rights at NTP.

Our lead consultant have 5+ years of experience in AI sector in India. We are

specialist in AI vacuum cleaner projects, we provide tailored made and management
solutions for the client’s needs. The details of our previous client and projects will
be provided on request. Please write email to us on mecturing .in for further
communication and quotations. ( Mecturing eastland pvt. Ltd)
10
PURPOSE OF THE ORGANIZATION

The details of each of the above business activities can be discussed on request. Please
send us an email to mecturing.in for more details. From past 5 years we saw a good
growth in our all business and expecting good returns to all our stakeholders.
Apart from the business mentioned above, Mecturing Eastland also believe in give back to the
society for building a greater future of our country. The various initiatives on society pay back .

MECTURING EASTLAND PVT. LTD Internships and Training

In this initiative, we select students from various engineering and management colleges and
provide them internship and training. Our internships and training are very unique in nature
and its specially for the students of core Mangement Sector ( HR, Marketing, civil and
operation mangement) and Finance Management for preparing them to corporate / industry ready.
We provide them mentor from the industry. All this is done without taking any free / factor from the
students. Currently. We grant Rs. 60,000 ( Sixty Thousand Rupees) per year for this. Majority of the
amount will be paid as stipend to the best interns as encouragement.
. Internships and Training for FREE to deserving students But, this is NOT just a CSR
activity of MecTuring, three are other reasons also which gives us the energy to keep continuing
this for the betterment of society and students.

• The manpower requirement of core sector is huge but it required skilled persons only. Hence,
by providing this internship m wants to enhance the skills of young core management students.

11

CHAPTER NO : 3
PRODUCT/SERVICE
PROFILE
12
Services provided by the company

Mecturing offers project management services for cleaner machine. Robotic vacuum
cleaner projects
❖ Among our services are:

• Feasibility study, detailed project report, and financial analysis (IM).

• For Project Finance, financial closure can be achieved by debt or private equity.

• On-site and off-site project management, as well as EPC management, are

available.
• Documentation and Transaction Services for Project Sale. •
At NTP, we develop projects and transfer rights.

❖ Mecturing provide and management consultancy services for companies in

energy . Our specialty is in following projects

• Solar PV Project

• Waste to Energy

• Sustainable Development

• Merger and Acquisition and Private Equity

13
ROBOTIC VACUUM CLEANER PROJECT:
(Fig 3.1)

For the creators of Large Sized Utility Scale PV Power Projects, VCE provide the
following services :

• Financial Analysis (IM), Detailed Project Report, and Feasibility Analysis. •

Financial closure for project financing through debt or private equity. •

Project management services both on-site and off-site, as well as EPC

management.

• Project sale documentation and transaction services.

• At NTP, project development and rights transfer take place.

14
working :

(Fig. 3.2)

1. Main Body

 Casing: The outer shell that houses all the components. It's usually made from durable plastic and
designed to be lightweight and compact.
 Bumpers: Located around the edges, these allow the robot to detect collisions with objects and
change direction accordingly. Bumpers are often spring-loaded and equipped with sensors.

2. Navigation System

 Sensors: Robotic vacuums use a variety of sensors to navigate and clean efficiently:

o Infrared Sensors: Detect obstacles and edges, preventing the vacuum from bumping into
objects or falling down stairs.

o Cliff Sensors: Specifically detect drops, like stairs, to prevent the vacuum from falling.

o Gyroscope/Accelerometer: Helps the vacuum understand its orientation and movement.

o Optical Sensors: Some models use cameras or LIDAR (Light Detection and Ranging) for
advanced mapping and navigation.

 Mapping Technology: Higher-end models use LIDAR or cameras to create a map of the cleaning
area. This map is used for systematic cleaning, allowing the vacuum to cover the entire floor
efficiently.

3. Drive System

 Wheels: Usually two or more motorized wheels provide movement. These wheels are often
equipped with rubber treads to improve traction on various surfaces.

 Caster Wheel: A small, swiveling wheel at the front or back of the vacuum to assist with smooth
movement and turning.

4. Cleaning Mechanism

 Main Brush Roll: A rotating brush, often made of a combination of bristles and rubber flaps, is
used to agitate dirt and debris from the floor. Some models feature dual brush rolls for better
performance.

 Side Brushes: Small, spinning brushes located at the edges of the vacuum to sweep dirt from
edges and corners into the path of the main brush roll.
 Suction Motor: Generates the suction needed to lift dirt, dust, and debris off the floor and into
the dustbin.

 Dustbin: The container that collects dirt and debris. It can be removed for emptying and usually
has a filter to capture fine particles.

5. Power System

 Battery: Typically a rechargeable lithium-ion battery that provides power to all components.
Battery life varies by model, influencing how long the vacuum can operate on a single charge.

 Charging Dock: A base station where the vacuum returns to recharge when the battery is low.
Some models have automatic docking, where the vacuum returns to the dock when cleaning is
complete.

6. Control System

 Processor/Controller: The brain of the vacuum, processing sensor data and making decisions
about navigation, cleaning patterns, and obstacle avoidance.

 Wireless Connectivity: Many modern robotic vacuums have Wi-Fi or Bluetooth connectivity,
allowing them to be controlled via a smartphone app or voice assistants like Alexa or Google
Assistant.

 Remote Control: Some models come with a physical remote for manual control of the vacuum.

7. Additional Features

 Mop Attachment: Some robotic vacuums include a mopping function with a water reservoir and
a microfiber cloth or pad.

 HEPA Filter: High-efficiency particulate air (HEPA) filters trap fine dust and allergens,
improving air quality.

 Voice Alerts: Some models can provide voice feedback on their status, such as "battery low" or
"dustbin full."

 Scheduling: Allows users to set specific times for the vacuum to start cleaning automatically.
8. Advanced Navigation & AI

 Room Mapping and Memory: Advanced models create and store maps of the cleaning area,
allowing for targeted cleaning of specific rooms or zones.

 AI-Powered Features: Some robotic vacuums use artificial intelligence to recognize objects,
optimize cleaning routes, and adapt to changing environments.

9. Maintenance Components

 Brush Cleaning Tool: Often included for removing tangled hair and debris from the brushes.

 Replacement Filters and Brushes: Most vacuums come with or offer replacement parts to
maintain performance.

These components work together to ensure that the robotic vacuum can effectively
clean a variety of floor types, navigate complex environments, and operate
autonomously for extended periods.

4o

Commercial Evaluation of Municipal Corporation Tipping Fee

and Waste Management Contract.

• Installation of energy generation and pyrolysis units.

15
Sustainable Development Project

(Fig. 3.3)

For companies and institutions wants to address their carbon foot prints and
ready toadopt sustainable development strategy, we offer following services

• Development that is sustainable and the environment Tour and sessions

foreducation.

• Reporting and documentation on sustainability.

• Innovation in sustainable development practises and ideas.

• carbon footprint reduction strategy.

16
Merger And Acquisition Or Private Equity

(Fig.3.4)

If you are looking for Merger and Acquisition or Private Equity for your business growth,
we offer following services;

• Management of your company's M&A process from beginning to end. •

Assistance with obtaining funding for your project through loan, private
equity, orconsent management

• For increased revenue and market expansion, consultancies in businessdevelopment

and management.

• Valuation and financial analysis using various techniques for various projects.
17

Mecturing eastland Internships and Training

Mecturing Internships and Training is an initiative aimed at providing

internship and training opportunities to students from various management
colleges. The program caters specifically to students in the mangement
Sector, including HR, Marketing, and operations management , as well as
Finance Management. The internships and training offered through this program
are highly unique in nature and are designed to prepare students to be ready for
the
corporate and industrial sectors. One of the key aspects of this initiative is
the provision of mentors from the industry, who offer guidance and support
to the students throughout their internship and training period. What sets this
program apart is that it is completely free for the students, with no fees or
favors required. Moreover, Mecturing Internships and Training provides a
stipend of Rs. 60,000 per year to the participants, with a significant portion of
the amount being awarded to the best interns as a form of encouragement. To
date, the program has already paid out
stipends totalling over Rs. 1.50 Lakhs.

18

CHAPTER NO: 4
LITRATURE
REVIEW
19
Project Finance

Project finance is the long-term financing of infrastructure and industrial projects

based upon the projected cash flows of the project rather than the balance sheets of
its sponsors. Usually, a project financing structure involves a number of equity
investors, known as ‘sponsors’, and a ‘syndicate’ of banks or other lending
institutions that provide loans to the operation. They are most commonly non-
recourse loans, which are secured by the project assets and paid entirely from
project cash flow, rather than from the general assets or creditworthiness of the
project sponsors, a decision in part supported by financial modeling; see Project
finance model. The financing is typically secured by all of the project assets, including the
revenue-producing contracts. Project lenders are given a lien on all of these assets and are
able to assume control of a project if the project company has difficulties complying with
the loan terms.

Generally, a special purpose entity is created for each project, thereby shielding
other assets owned by a project sponsor from the detrimental effects of a project
failure. As a special purpose entity, the project company has no assets other than
the project. Capital contribution commitments by the owners of the project company
are sometimes necessary to ensure that the project is financially sound or to assure
the lenders of the sponsors’ commitment. Project finance is often more complicated
than alternative financing methods. Traditionally, project financing has been most
commonly used in the extractive (mining), transportation, telecommunications, and
power industries, as well as for sports and entertainment venues.
20
BENEFITS OF PROJECT FINACNCE

Financing infrastructure projects through the project finance route offers various
benefits such as the opportunity for risk sharing, extending the debt capacity, the
release of free cash flows, and maintaining a competitive advantage in a
competitive market. Project finance is a useful tool for companies that wish to
avoid the issuance of a corporate repayment guarantee, thus preferring to finance
the project in an off-balance sheet manner. The project finance route permits the
sponsor to extend their debt capacity by enabling the sponsor to finance the project
on someone’s credit, which could be the purchaser of the project’s outputs.
Sponsors can raise funding for the project based simply on the contractual
commitments.
Project finance offers several benefits for large-scale ventures. Firstly, it allows for the
separation of project risks from the overall financial health of the sponsoring company,
shielding it from potential losses. This risk mitigation attracts investors and lenders,
fostering collaboration on projects that might otherwise be deemed too risky. Additionally,
project finance facilitates the mobilization of significant capital, enabling the development
of complex and costly projects, such as infrastructure or renewable energy initiatives. The
structure also promotes efficient allocation of resources, as funds are specifically earmarked
for the project, ensuring dedicated financial support. Moreover, project finance often
involves diverse stakeholders, promoting collaboration and shared responsibility, which can
enhance project success. Overall, the structured and risk-mitigated approach of project
finance contributes to the viability and success of large-scale endeavors.
21
COST ANALYSIS :

(Fig. 4.1)

Cost analysis is a helpful tool to enhance project management and predict

potential profits for a company. Financial professionals use cost analysis to

calculate how much money a project can generate compared to the project's

overall costs. If you work in finance or project management, it might be helpful to

learn more about cost analysis and how to calculate it.In this article, we discuss

cost analysis and why it's important, provide seven steps you can use to calculate

it and review an example of a cost analysis calculation.

22
IMPORTANTS OF COST ANANLYSIS
• Cost analysis ,or cost benefit analysis(CBA) is a systematic approach that helps you
evaluate an endeavour or projects financial implications and benefits.

• Essentially, a CBA quantitatively compares the estimated costs and benefits. The
outcome provides a numerical indicator ( total benefits minus total cost) that helps
you assess whether a proposed project is economically sound.
For instance , consider the launch of a new product line. Performing a cost analysis
would help you discern the preliminary expenditure, potential revenue ( tangible
benefit), and the overall financial viability of this endeavour.

• Risk management by highlighting potential costs and their impact, cost analysis
allows for a proactive approach to risk management . It helps identify areas where
expected expenses might arise and plan for contingencies.
• Better descision making : CBA helps compare the financial pros and cons of a
project or decision. By laying the expected costs and benefits, it allows for a more
objective evaluation compared to intuition.

23
BASICS OF COST ANALYSIS:
Cost analysis , also known cost benefit analysis as cost- benefit analysis , is the
process of calculating the potential earnings from situation or project and
subtracting the total cost associated with completing it. It predicts the profit
gained from a project and compares the projects cost to its estimated financial
benefits. Many finance professionals use cost analysis to show clients their
potential profits from a project.

WHY COST ANALYSIS IMPORTANT:

1. HELPS DECISION: Cost analysis allows professionals to make

decisions regarding future projects by allowing them to weigh their costs
against their profits. If the project cost is higher than the predicated
earnings, professionals can make the necessary changes to the project to
increase the earnings or lower expenses. This helps maintain profitability
without sacrificing essential company projects.
2. Keeps stakeholders involve: cost analysis ensures that companies
involve stakeholders in the stakeholders in the decision making process.
Stakeholders are a necessary part of business operations because they
contribute to a company and a take an interest in projects. Because of this,
companies need to keep them informed of relevant performances data.
Sharing cost analysis information can give stakeholders the information
they need to make budgeting and financial strategy decisions.
3. Solve problems: Cost analysis can help identify financial problems and
find solutions. If a company is experiencing difficulty in project
management, it can use cost analysis to maintain organization and gain a
deeper understanding of its finances and future projects. Regular cost
analysis reviews can help you identify which factors impact a projects
profitability and address them directly.

Who builds cost analysis ? (jobs and career)

Cost analysis is typically conducted by professionals in various fields. The

most common types of career tracks are financial analyst , accountants ,
budget analysts, project mangers, operation analysts, business analysts etc.

25
TYPES OF COST ANALYSIS

There are numerous sorts of COST ANALYSIS. We will detail the top 10 most common
models used in corporate finance by COST ANALYSIS professionals in this article.

1. COST BENEFIT ANALYSIS (CBA):

This is more comprehensive analysis that considers both the costs and the
benefits of a projector or program. It assigns a monetary value to the
benefits. Whenever possible, and compares it to the total cost. This helps
decision- makers assess the overall value proposition of a project and make
informed choices about resource allocation.

2. COST FEASIBILITY ANALYSIS :

This analysis is a preliminary assessment to determine if a proposed

project is financially viable. It involves estimating the total cost of the
project , including all the resources required, and comparing it to the
expected budget. This helps decision makers identify potential financial
constraints early and avoid investing in unrealistic projects.

3. Fixed Cost Analysis:

Fixed cost analysis focuses on examining and understanding expenses that
remain constant regardless of the level of production or output. Fixed cost
analysis helps the business in budgeting, as these costs need to be covered
regardless of operational levels. It allows organizations to plan for stable
and consistent expenses.

26
4. Variable Cost Analysis:
Variable cost analysis concentrates on costs that fluctuate in direct
proportion to changes in production or output. Variable cost analysis is
crucial for determining the cost of producing each additional unit of a
product or service. It aids in pricing strategies and assessing the
profitability of different production levels.

5. Direct cost analysis:

Direct cost analysis focuses on expenses directly attributable to a specific

product, project, or department. Direct cost analysis is instrumental in
determining the precise cost of producing a specific item or delivering a
particular service. It helps in pricing , budgeting and evaluating the
profitability of individual products .

6. Indirect cost analysis:

Indirect cost analysis deals with expenses that are essential for overall
operations but cannot be directly attributed to a specific product or project.
Indirect cost analysis is crucial for determining the overhead costs associate
with running the organization as a whole.it helps in pricing strategies , cost
allocation, and assessing the efficiency of support functions.

Solar power project in finance

A financial model is simply a tool that's built in spreadsheet software such as MS Excel to
forecast a business' financial performance into the future. The forecast is typically based on the
company's historical performance, assumptions about the future, and requires preparing an income
statement, balance sheet, cash flow statement, and supporting schedules (known as a 3 statement
model). From there, more advanced types of models can be built such as discounted cash flow
analysis (DCF model), leveraged-buyout (LBO), mergers and acquisitions (M&A), and sensitivity
analysis, Below is an example of financial modeling in Excel.
Financial modelling is hard if you're trying to figure it out on your own, but with the help of a
professional training program like CFl's, the modelling process becomes a lot easier. Many finance
professionals find it hard to link the three financial statements together in Excel, so once you know
how to do that, you'll be off to a great start.

If you're interested in financial modelling, chances are, you're planning to land a job offer in the
finance industry. You may want to be an investment banker, a private equity research specialist, or an
analyst or associate in a hedge funds firm. It's really not a question of whether financial modelling is
hard or not. It's about your willingness and determination to learn new skills or hone your current skill
set.

Completing a financial modelling course opens more opportunities for career growth, and in an
industry such as finance, you would need continuous learning so you can quickly adapt to change
and be one step ahead of your peers.

29

CHAPTER NO:5
DATA ANALYSIS

AND

INTERPRETATION
30
Project Schedule
The implementation of a project within a predetermined time limit is critical
to its success. Timely implementation reduces costs such as interest and
administrative overheads while also assisting in the achievement of pre-
determined targets.

Coordination of diverse operations at various levels of the firm and among

various outside agencies is required for project implementation. We are
providing details about the Project Implementation here.
Sr.No Particulars Duration of
Month

1. Total Project Time 5 Month

2. Date of Ordering 2 Month

3. Financial Closure Achievement 2 Month

4. Plant and Machinery Ordering 1 Month

(Table. 5.1)

During which detailed engineering, procurement, erection and commissioning of civil &
structural, mechanical and electrical equipment will be executed . The Plant and Machinery
ordering process will happen and the entire ordering process will happen in one month.
Tec Vardhan Power Pvt. Ltd has signed a PPA for 25 years with GUVNL for a 10 MW
Solar PV / Wind Power Plant at a fixed tariff of Rs. 3.50 / kWh. The project location is in
Porbandar Gujarat, India.
The expected Capex is Rs. 71100000 / MW and fixed OpEx is Rs. 630000.
31
CAPEX MODEL OF SOLAR ENERGY PLANT
Project Cost (CapEx) TOTAL SQ FEET
Rate 45000 % of project
cost

PV modules 720 32400000 45.57%

Inverters 170 7650000 10.76%

Metal load-bearing structures 130 5850000 8.23%

DC and AC cable lines 180 8100000 11.39%

Electrical protective equipment 30 1350000 1.90%

Electrical substation 10 450000 0.63%

High/medium voltage lines 80 3600000 5.06%

Fences, cameras and security 230 10350000 14.56%

Other engineering elements, 30 1350000 1.90%

Total Project Cost 71100000 100.00%

(Table. 5.2)

CAPEX Chart
(Fig. 5.1)

Interpretation :-

In Project cost total 9 costs are included the rate of each cost is vary and the total cost per sq ft is
45000. PV model takes a higher cost (45.57%) and electric substation takes a lower cost (0.63%) of
overall project cost The total cost of all the project 7100000.

32
OPEX MODEL OF SOLAR ENERGY PLAN
O & M Co st (Monthly Breakdown) (OpEx) 450 00

Building Maintainence 135000

3.0
Utilities (Electric + Water + Internet) 180000
4.0

Salary (Maid + Acountant) 90000

2.0
Plumber + Electrician + Misc etc 135000
3.0
Insurance 90000
2
Total O&M Cost (per year) 630000 (
Interpretation :-

In Project cost total 5 costs are included the rate of each cost is vary and Per Year is
45000. Utilities takes a higher cost 180000 and Insurance and salary takes a lower cost 9000 of overall
project cost The total cost of all the project 630000.

33
s Profit and Loss Account :

34
Charts :

Interpretation :

Above the charts we come conclusion that profit after tax (PAT) is high is 12 th year that is
1181.46lkh After that the highest Profit after tax is 13 th that comes to 1164.16 lakh consecutively the ROE
of both 13 th and 12 th year are the same that is 30% Rate of interest (after tax ) has the highest percentage in
12 th and 13 th year that is 5% and 4%
35
Financial Feasibility Analyses
Before making an investment choice, it is vital to examine whether the proposed investment
idea is practical. The feasibility of an investment must be assessed in numerous ways in
order to determine whether the investment should be realized or not. One of the most
important steps is thus to do a feasibility analysis.

Before preparing a business strategy, a financial feasibility analysis should be carried out to establish
the economic viability of a proposed operation. It detects startup expenses, forecasts profitsand cash
flows, and calculates the return on investment.

Relevant criteria must be chosen to analyses the financial feasibility of investments.

Financial feasibility estimates must be performed with caution, and the complexity of the
calculations is determined by the number of various factors that must be considered. The
assumptions employed in the calculations can and frequently will change as the project
continues, necessitating an update to the study.

A financial feasibility study, or FFS, should evaluate a project's viability based on a key
component: will the project or business have enough cash to execute the project (and
createa profit)? One of a company's bottom lines is whether it can sustain itself. itself, pay
its employees, and earn a profit. A financial analysis can help with this assessment. Considerthe
following elements:

• Expenses

• Revenues

• Debt schedule/ repayment

• Cash flow (money in, and money out).

• DSCR

• IRR
36
Expenses
The expenses for a 10 MW solar power project can vary based on several factors,
including location, technology, and regulatory requirements. Typically, the major costs
involve solar panels, inverters, mounting structures, land acquisition, and grid
connection. Solar panels account for a significant portion, with the type and efficiency of
the panels influencing costs.
Inverters, essential for converting solar energy into usable electricity, are another substantial
expense. Land acquisition costs depend on the project's size and location, while mounting
structures ensure proper panel installation. Additionally, expenses include engineering,
procurement, and construction (EPC) services, permitting, and interconnection fees.
Ongoing operational and maintenance costs must also be considered. Government
incentives or subsidies can offset some expenses, making the overall financial feasibility of
the project more favorable.

1. Revenues
The 10 MW solar power project is anticipated to generate revenues through various
channels. The primary source would be the sale of electricity to the grid or local
consumers,based on established power purchase agreements. Additionally, the project
may benefit from government incentives, such as feed-in tariffs or tax credits, further
augmenting its revenue stream. The efficient utilization of available sunlight and
advanced technology would optimize energy production, contributing to a steady
income. Moreover, potential revenue diversification could arise from the sale of
Renewable Energy Certificates, emphasizing the project's environmental sustainability.
Ongoing maintenance contracts and potential partnerships for excess energy storage or
distribution could further enhance revenue
generation.
37
2. Debt Schedule
The 10 MW solar power project's debt schedule involves a meticulous breakdown of the
debt repayment plan over its operational period. Typically, this schedule encompasses the
loan principal and interest payments, usually structured over a specific tenure. The debt
maybe sourced from various sources, such as banks or financial institutions, with terms
negotiated based on interest rates, grace periods, and repayment installments.

The schedule details the annual or semi-annual debt service payments, considering
factors like the project's cash flow, revenue projections, and potential fluctuations in
interest rates. This comprehensive plan ensures that the project remains financially
sustainable, meeting its financial obligations while optimizing returns on investment for
stakeholders. Additionally, it helps assess the project's viability and mitigates financial risks
associated with the solar
power venture.

3. Cash Flow
The 10 MW solar power project is anticipated to generate a steady cash flow
through various revenue streams. Initial investments will be incurred for land
acquisition, solar panels, and installation. The project's operational phase will see
revenue primarily from selling generated electricity to the grid or through power
purchase agreements. Operational expenses include maintenance, monitoring, and
potential land lease costs. The project's profitability will be influenced by factors like
sunlight availability, efficiency of solarpanels, and local energy prices. Government
incentives or subsidies may also contribute to the cash flow. As the project matures,
maintenance costs might fluctuate, impacting overall cash flow, and periodic
equipment upgrades may be necessary to optimize performance.
38
4. DSCR ( Debt Service Coverage Ratio)
The Debt Service Coverage Ratio (DSCR) is a critical financial metric used to assess the
financial viability of a solar power project. It measures the project's ability to generate
sufficient operating income to cover its debt obligations, specifically the interest and
principal repayments. A DSCR of 1 indicates that the project is generating just enough
income to cover its debt obligations, while a ratio above 1 suggests a surplus, indicating a
healthier financial position. For a 10 MW solar power project, maintaining a DSCR above
1is crucial for attracting financing and ensuring long-term sustainability. Lenders typically
look for a DSCR of at least 1.2 to mitigate risks. Achieving a robust DSCR involves
accurate revenue projections, efficient operation, and meticulous financial planning to
weather potential fluctuations in revenue and operating costs over the project's lifespan. It
serves as a key indicator for investors and lenders, influencing their confidence in the
project's ability to meet debt obligations and achieve financial success.

5. Internal Rate of Return

The internal rate of return (IRR) for a 10 MW solar power project is a crucial financial
metric that measures the project's profitability. It represents the discount rate at which thenet
present value (NPV) of the project's cash flows becomes zero. In the context of a solar
power project, the IRR takes into account various factors such as initial capital costs,
operational and maintenance expenses, and revenue generated from selling the solar energy
produced. A positive IRR indicates that the project is expected to generate returns higher
than the cost of capital, making it financially viable. Investors often use the IRR to assessthe
attractiveness of an investment, comparing it to their required rate of return. It isessential for
the IRR to exceed the project's cost of capital for it to be considered afinancially sound
investment, providing confidence to stakeholders and attracting necessary funding for the
sustainable development of solar energy initiatives.
39

CHAPTER NO :
6 CONCLUSION
40
Finding

Cost Distribution The PV model accounts for a substantial portion (45.57%) of the overall
project cost, emphasizing its significance in the project.
Electric Substation Cost The lower cost allocation (0.63%) to the electric substation suggests
it is a relatively minor contributor to the overall expenses.
Total Project Cost The total project cost of 7100000, with a cost per sq ft of 45000, reflects the
scale and magnitude of the project.
Annual cost has a different structure, with costs spread over the year. Utilities constitute a
significant portion (180000), indicating a crucial aspect of ongoing operational expenses.
Insurance and Salary The lower cost allocation (9000) for insurance and salary implies these
are relatively minor annual expenses.
Total Project Cost The total project cost of 630000 suggests a project of moderate scale.
Efficient Procurement The one-month timeline for the Plant and Machinery ordering process in
Project 1 indicates a streamlined and efficient procurement approach, ensuring timely project
progress.
Cost Implication The rapid ordering process may imply potential cost savings or the need
for upfront capital, which should be carefully managed.
41
Suggestions
Given the significant percentage (45.57%) allocated to PV model, ensure careful planning and
execution of activities related to it to optimize costs.

As the electric substation has a lower cost percentage (0.63%), consider evaluating if there are
opportunities for cost savings without compromising functionality.

With utilities accounting for a higher cost (180000), explore energy-efficient solutions and
technologies to potentially reduce long-term operational expenses.

Since insurance and salary constitute a lower cost (9000), ensure that adequate coverage and
fair compensation are maintained to mitigate potential risks and attract skilled personnel.

Streamline the ordering process for Plant and Machinery to maximize efficiency, ensuring
timely procurement without unnecessary delays.

Consider negotiating favorable terms with suppliers to optimize costs during the ordering
process.

Regularly monitor and control project costs throughout the detailed engineering,
procurement, erection, and commissioning phases to avoid overruns.

Implement a comprehensive risk management plan to address potential uncertainties that

could impact project costs.
42
Conclusion

The financial modeling and analysis of the proposed 10 MW solar power project in
Porbandar, Gujarat, reveal promising prospects. The robust solar potential in Gujarat, coupledwith
government incentives and favorable policies, positions the project for sustainable success. The
model considers key factors such as capital expenditure, operational costs, revenue streams, and
potential return on investment. With declining solar panel costs and advancements in technology,
the project exhibits a compelling financial viability. The conclusion underscores the project's
capacity to contribute to renewable energy goals, generate positive cash flows, and offer an
attractive investment opportunity in the burgeoning solar sector of Gujarat.

Residential research indicates that predicting project feasibility is difficult. To assess

the feasibility of such a project, it is necessary to identify those aspects that project
promoterscannot control but have a significant impact on project cash flows. After
evaluating those characteristics, we will be able to do a sensitivity analysis on the project.
The report involves the financial modeling and analysis of 50 flats housing in
Gurugram, Haryana IN. For the project non-recourse debt is beneficial as it need huge
investment. Bytaking appropriate assumptions and data provided in, financial model is
prepared. Financial viability of the project is determined by calculating the cash flow statement,
DSCR and IRR.
43
BIBLIOGRAPHY

• WWW.MECTURING.COM

• https://in.indeed.com/career-advice/career-development/what-is-project finance#:~:text=Benefits
%20Of%20Project%20Finance&text=It%20maximis es% 20leverage.,refers%20to%20highly
%20leveraged%20finance.

• https://www.linkedin.com/company/techvardhan/

• https://www.finline.in/resource/advantages-an-disadvantages-of-project-finance/

44
45