Plant Capacity (kW) Project Cost (INR '000)

Plant Net Capacity (kW) 5,000 Per kW Cost in 39.58

Generation (units/kW/Year) 1,577 Project Cost 197,900
Annual Degradation for first 10 yr 1.0% Project Subsidy % 0%
Annual Degradation for next 15 yr 0.7%

Financial Parameter
Debt (% Loan from the bank) 60%
Loan repayment year (in No.) 7
Interest Rate ( in %) 12%
Accelerated IT Depreciation Y
O & M Parameter
First year O&M cost - % on Capex 1.5%
YoY O&M escalation (in %) 7.0%
Spares replacement frequency (years) 10
Spares cost INR Million kW 5.4%
Project Insurance cost (in %) 0.3%
Tariff
EB tariff rate Rs. per unit 5.59
YoY EB tariff rate escalation 2%
Demand Charges Rs./kVA/Month -
 Project Results
15 year Pre tax Project IRR (%) 16.6%
15 year Equity IRR (%) 22.0%

25 year Pre tax Project IRR (%) 16.7%

25 year Equity IRR (%) 22.0%

Payback in years 4.59

25 years average EB tariff rate with YoY escalation 7.16

Discounted LCOE Rs. per unit 7.16
 FINANCIAL SUMMARY

PROJECT CONSIDERATIONS
TECHNICAL PARAMETERS FINANCIAL ASSUMPTIONS TARIFF ASSUMPTIONS
Plant Net Capacity (in kW) 5,000 Loan repayment year (in No.) 7 Avg. Current tariff (Rs./kWh) 5.59
Annual Degradation for first 10 yr 1.0% Interest Rate ( in %) 12.00% Tariff rate escalation 2.00%
Annual Degradation for next 15 yr 0.7% Accelerated IT Depreciation Y Demand Charges Rs./kVA/Month -
Average Generation Per Year ( per kW) 1,577 Additional Depreciation in 1st Yr Y
Cost Per Wp (Rs.) 39.58 Project Insurance cost (in %) 0.25% AVERAGE EB TARIFF (rs./kWh)
Project subsidy (in percentage) 0.00% Avg. tariff over first 5 years 5.82
PROJECT COST Whether Roof top rent N Avg. tariff over first 10 years 6.12
Cost of Solar Power Plant (Rs. Million) 257.25 Roof top rent Rs. per Sq. Ft - Avg. tariff over first 15 years 6.45
Cost of Land (Rs. Million) - Rent Escalation rate 0.00% Avg. tariff over first 20 years 6.79
Total Project Cost (Rs. Million) 257.25 Rate of Income Tax 33.99% Avg. tariff over 25 years 7.16
Interest Capitalized (Rs. Million) 9.26
Total Project Cost (Rs. Million) 266.51 O&M ASSUMPTIONS Income Tax Saving Rs. Million
First year O&M cost 1.47% Year 1 52.80
SOURCE OF FUNDS YoY O&M escalation (in %) 7.0% Year 2 14.08
Debt (% Loan from the bank) 60% Spare Replacement % (in %) 100.0% Year 3 8.45
Debt (Rs. Million) 154.35 Spare Replacement Frequency (ye 10
Equity (Rs. Million) 112.16

SNAPSHOT OF PROJECT FINANCIAL PERFORMANCE

RETURN ON INVESTMENT PAYBACK PERIOD COST OF ELECTRICITY
15 year Pre tax Project IRR (%) 16.6% Un-Levered Payback (Years) 4.59 Average MSEDCL energy cost over 25 years 7.16
15 year Equity IRR (%) 22.0% Equity Payback (Years) 4.71 Average solar energy cost over 25 years 2.91
25 year Pre tax Project IRR (%) 16.7%
25 year Equity IRR (%) 22.0%

TAGROS-PANOLI-IRR PROPERTY OF KIRLOSKAR INTEGRATED TECHNOLOGIES PVT. LTD. 3/7

 CASH FLOW

Solar Project Analysis Model Project 15-Year IRR: 16.6% / Equity 15-Year IRR: 22.0%

Year 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Income Statement
Annual Generation (units) 7,884,000 7,805,160 7,727,108 7,649,837 7,573,339 7,497,606 7,422,629 7,348,403 7,274,919 7,202,170 7,130,148 7,058,847 6,988,258 6,918,376 6,849,192 6,780,700 6,712,893 6,645,764 6,579,306 6,513,513 6,448,378 6,383,895 6,320,056 6,256,855 6,194,286
W&B Loss -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
Net Annual Gen. (units) 7,884,000 7,805,160 7,727,108 7,649,837 7,573,339 7,497,606 7,422,629 7,348,403 7,274,919 7,202,170 7,130,148 7,058,847 6,988,258 6,918,376 6,849,192 6,780,700 6,712,893 6,645,764 6,579,306 6,513,513 6,448,378 6,383,895 6,320,056 6,256,855 6,194,286

Tariff (INR) 5.6 5.7 5.8 5.9 6.1 6.2 6.3 6.4 6.6 6.7 6.8 7.0 7.1 7.2 7.4 7.5 7.7 7.8 8.0 8.1 8.3 8.5 8.6 8.8 9.0
Total (INR) 5.6 5.7 5.8 5.9 6.1 6.2 6.3 6.4 6.6 6.7 6.8 7.0 7.1 7.2 7.4 7.5 7.7 7.8 8.0 8.1 8.3 8.5 8.6 8.8 9.0
O&M charge 10.23 10.95 11.71 12.53 13.41 14.35 15.35 16.43 17.58 18.81
Sales (INR Million) 44.09 44.52 44.96 45.40 45.84 46.29 46.74 47.20 47.66 48.13 48.60 49.08 49.56 50.05 50.54 10.23 10.95 11.71 12.53 13.41 14.35 15.35 16.43 17.58 18.81
O&M (3.60) (3.85) (4.12) (4.41) (4.72) (5.05) (5.40) (5.78) (6.19) (6.62) (7.08) (7.58) (8.11) (8.68) (9.28) (9.93) (10.63) (11.37) (12.17) (13.02) (13.93) (14.91) (15.95) (17.07) (18.26)
Insurance (0.61) (0.61) (0.61) (0.61) (0.61) (0.61) (0.61) (0.61) (0.61) (0.61) (0.61) (0.61) (0.61) (0.61) (0.61) -- -- -- -- -- -- -- -- -- --
Spares every 10th year -- (0.27) -- -- (0.27)
Notional cost for Fixed charges -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
Land Lease -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
Total Expenses (4.21) (4.46) (4.73) (5.02) (5.33) (5.66) (6.02) (6.39) (6.80) (7.23) (7.96) (8.19) (8.72) (9.29) (9.90) (9.93) (10.63) (11.37) (12.17) (13.02) (14.20) (14.91) (15.95) (17.07) (18.26)

EBITDA (INR Million) 39.87 40.05 40.22 40.37 40.51 40.63 40.73 40.81 40.87 40.90 40.64 40.89 40.84 40.76 40.64 0.30 0.32 0.34 0.37 0.39 0.15 0.45 0.48 0.51 0.55

Depreciation (13.42) (13.42) (13.42) (13.42) (13.42) (13.42) (13.42) (13.42) (13.42) (13.42) (13.42) (13.42) (13.42) (13.42) (13.42) -- -- -- -- -- -- -- -- -- --
Amortization -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --

EBIT (INR Million) 26.45 26.63 26.80 26.95 27.08 27.20 27.30 27.38 27.44 27.48 27.21 27.46 27.42 27.33 27.22 0.30 0.32 0.34 0.37 0.39 0.15 0.45 0.48 0.51 0.55

Interest Expense -- (18.52) (16.54) (13.89) (11.25) (8.60) (5.95) (3.31) (0.66) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

EBT (INR Million) 7.93 10.09 12.91 15.70 18.49 21.25 24.00 26.72 27.44 27.48 27.21 27.46 27.42 27.33 27.22 0.30 0.32 0.34 0.37 0.39 0.15 0.45 0.48 0.51 0.55

Taxes (1.69) (2.15) (2.75) (3.35) (3.95) (4.54) (5.12) (5.70) (11.35) (13.92) (13.92) (14.07) (14.08) (14.08) (14.05) (0.09) (0.10) (0.11) (0.12) (0.13) (0.05) (0.15) (0.17) (0.18) (0.19)

Net Income (INR Million) 6.24 7.94 10.15 12.35 14.54 16.72 18.88 21.02 16.09 13.56 13.29 13.40 13.33 13.26 13.17 0.21 0.22 0.23 0.24 0.26 0.10 0.29 0.31 0.33 0.36

TAGROS-PANOLI-IRR PROPERTY OF KIRLOSKAR INTEGRATED TECHNOLOGIES PVT. LTD. 4/7

 CASH FLOW

Solar Project Analysis Model Project 15-Year IRR: 16.6% / Equity 15-Year IRR: 22.0%

Year 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Cash Flow Statement
Net Income 6.236 7.94 10.15 12.35 14.54 16.72 18.88 21.02 16.09 13.56 13.29 13.40 13.33 13.26 13.17 0.21 0.22 0.23 0.24 0.26 0.10 0.29 0.31 0.33 0.36
Depreciation & Amortization 13.42 13.42 13.42 13.42 13.42 13.42 13.42 13.42 13.42 13.42 13.42 13.42 13.42 13.42 13.42 -- -- -- -- -- -- -- -- -- --
Tax Income 52.80 14.08 8.45 5.07 3.04 1.82 1.09 0.66 0.39 0.24 0.14 0.09 0.05 0.03 0.02 0.01 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
ITC GST Y 12.25 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
Receipt of Subsidy -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
Loan Repayment (11.03) (22.05) (22.05) (22.05) (22.05) (22.05) (22.05) (11.03) -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --

Levered Free Cash Flow 73.68 13.39 9.97 8.80 8.96 9.91 11.34 24.08 29.91 27.22 26.86 26.91 26.81 26.71 26.61 0.22 0.22 0.23 0.24 0.26 0.10 0.29 0.31 0.34 0.36

Addback Loan Repayment 11.03 22.05 22.05 22.05 22.05 22.05 22.05 11.03 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
Addback Interest Payments 18.52 16.54 13.89 11.25 8.60 5.95 3.31 0.66 (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00)
Addback Tax -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --

Unlevered Free Cash Flow 103.23 51.98 45.91 42.09 39.61 37.92 36.70 35.76 29.91 27.22 26.86 26.91 26.81 26.71 26.61 0.22 0.22 0.23 0.24 0.26 0.10 0.29 0.31 0.34 0.36
Year 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
IRR Analysis
Pre Tax Unlevered Cash (266.51) 103.23 51.98 45.91 42.09 39.61 37.92 36.70 35.76 29.91 27.22 26.86 26.91 26.81 26.71 26.61 0.22 0.22 0.23 0.24 0.26 0.10 0.29 0.31 0.34 0.36
Cumulative Cash Flow (163.28) (111.30) (65.39) (23.30) 16.31 54.23 90.93 126.69 156.60 183.82 210.68 237.59 264.40 291.11 317.73 317.94 318.17 318.40 318.64 318.90 319.00 319.29 319.60 319.94 320.30
15-Year Post Tax Unl 16.6%
25-Year Post Tax Unl 16.7%
10 year Post Tax Unl 14.2%
Levered Cash Flows (112.16) 73.68 13.39 9.97 8.80 8.96 9.91 11.34 24.08 29.91 27.22 26.86 26.91 26.81 26.71 26.61 0.22 0.22 0.23 0.24 0.26 0.10 0.29 0.31 0.34 0.36
15-Year Levered IRR 22.0% (38.48) (25.09) (15.11) (6.32) 2.64 12.55 23.90 47.98 77.89 105.10 131.96 158.87 185.68 212.39 239.01 239.22 239.45 239.68 239.92 240.18 240.28 240.57 240.88 241.22 241.58
25-Year Levered IRR 22.0%
10 year levered IRR 18.0% Unlevered Payback 4.59 Levered Payback 4.71

TAGROS-PANOLI-IRR PROPERTY OF KIRLOSKAR INTEGRATED TECHNOLOGIES PVT. LTD. 5/7

Work Description Shifts Nos CTC/Month Expense/Month
Electrical Engineer 1 1 30,000 30,000
Electrician 3 1 20,000 60,000
Helpers 1 4 15,000 60,000
Cleaners 2 7 10,000 140,000
Misc consumable 10,000
-
-
Total

Electrical Consumption
Description Operaing hours `Nos kW Total
Domestic lighting 12 0 0.02 -
Field lighting 12 0 0.04 -
Pumps 4 0 8.5 -
SCADA 24 0 1.5 -
Misc 24 0 10 -
-
-
Total

TOTAL O&M COST IN YEAR 1 3,600,000

Expense/Year
360,000
720,000
720,000
1,680,000
120,000
-
-
3,600,000

Rate/kWh Total per year

7.00 -
7.00 -
7.00 -
7.00 -
7.00 -
7.00 -
-
-