Assumptions About Capital Structure

Assumptions about Capital Structure:
Equity
Debt
interset rate
No. of years
Rate on equity
WACC
Growth Assumptions:
City Office Rent
Salary of Direct labour
Salary of InDirect labour
Maintanance Expenses
miscellenious Expenses
Utilities Expenses
Marketing Expenses
Raw Material and Other Raw material
Packaging Cost
Transport
Average sales price
Increase in Production
Assumptions about Firm:
Partnership Firm
60%
40%
14%
5
13%
11%
15%
12%
10%
5%
3%
5%
2%
2%
3%
5%
5%
3%
Equity by partner A
Equity by partner B
Equity by partner C
Equity by partner D
Equity by partner E
30%
15%
20%
20%
15%
Profit of partner A
Profit of partner B
Profit of partner C
Profit of partner D
Profit of partner E
30%
15%
20%
20%
15%
Drawing by A
Drawing by B
Drawing by C
Drawing by D
Drawing by E
10%
5%
8%
8%
2%
Other Assumptions:
Tax Rate
Depreciationof machinary (Reducing Balance Method)
Depreciationof equipment (Reducing Balance Method)
life of machine and equipment
40%
20%
15%
5
sales
inventory
Year 1
70%
30%
Year 2
73%
27%
Year 3
80%
20%
Year 4
88%
12%
Year 5
100%
0%
No of Size
App-Lime
Carrot
Nonish
Grapfruit
2
2
2
2
No of Pieces in 250 ml Tray

24
24
24
24
YEAR 1
Types
App-Lime
250 ml
1000 ml
Carrot
250 ml
1000 ml
Nonish
250 ml
1000 ml
Grapfruit
250 ml
1000 ml
Units available for sale
Total Unit Produced
Total
150,000
100,000
150,000
100,000
100,000
80,000
100,000
80,000
70,000
60,000
70,000
60,000
115,000
90,000
115,000
90,000
765,000
765,000
YEAR 2
Types
App-Lime
250 ml
1000 ml
Carrot
250 ml
1000 ml
Nonish
250 ml
1000 ml
Grapefruit
250 ml
1000 ml
Total
YEAR 3
Total Unit Produced

154,500
103,000
199,500
133,000
103,000
82,400
133,000
106,400
72,100
61,800
93,100
79,800
118,450
92,700
152,950
119,700
787,950
1,017,450
Types
App-Lime
250 ml
1000 ml
Carrot
250 ml
1000 ml
Nonish
250 ml
1000 ml
Grapefruit
250 ml
1000 ml
Total Unit Produced
Total
159,135
106,090
213,000
142,000
106,090
84,872
142,000
113,600
74,263
63,654
99,400
85,200
122,004
95,481
163,300
127,800
811,589
1,086,300
YEAR 4
Types
App-Lime
250 ml
1000 ml
Carrot
250 ml
1000 ml
Nonish
250 ml
1000 ml
Grapefruit
250 ml
1000 ml
Total Unit Produced
Total
163,909
109,273
206,509
137,673
109,273
87,418
137,673
110,138
76,491
65,564
96,371
82,604
125,664
98,345
158,324
123,905
835,936
1,053,196
YEAR 5
Types
App-Lime
250 ml
1000 ml
Carrot
250 ml
1000 ml
Nonish
250 ml
1000 ml
Total Unit Produced

168,826
112,551
193,607
129,072
112,551
90,041
129,072
103,257
78,786
67,531
90,350
77,443
Grapefruit
250 ml
1000 ml
Total
129,434
101,296
148,432
116,164
861,014
987,398
REVENUE MODEL
No of pieces in 1000ml tray
6
6
6
6
Total units sold
Remaining Units
Avg SP(Rs.)
105,000
70,000
45,000
30,000
25
120
70,000
56,000
30,000
24,000
25
120
49,000
42,000
21,000
18,000
25
120
80,500
63,000
34,500
27,000
25
120
535,500
229,500
Total units sold
Remaining Units
Avg SP(Rs.)
145,635
97,090
53,865
35,910
26
126
97,090
77,672
35,910
28,728
26
126
67,963
58,254
25,137
21,546
26
126
111,654
87,381
41,297
32,319
26
126
742,739
274,712
Total units sold
Remaining Units
Avg SP(Rs.)
170,400
113,600
42,600
28,400
28
132
113,600
90,880
28,400
22,720
28
132
79,520
68,160
19,880
17,040
28
132
130,640
102,240
32,660
25,560
28
132
869,040
217,260
Total units sold
Remaining Units
Avg SP(Rs.)
181,728
121,152
24,781
16,521
29
139
121,152
96,922
16,521
13,217
29
139
84,806
72,691
11,565
9,912
29
139
139,325
109,037
18,999
14,869
29
139
926,813
126,384
Total units sold
Remaining Units
Avg SP(Rs.)
193,607
129,072
0
0
30
146
129,072
103,257
0
0
30
146
90,350
77,443
0
0
30
146
148,432
116,164
0
0
987,398
30
146
Revenue
2,625,000
8,400,000
1,750,000
6,720,000
1,225,000
5,040,000
2,012,500
7,560,000
35,332,500
Revenue
3,822,919
12,233,340
2,548,613
9,786,672
1,784,029
7,340,004
2,930,904
11,010,006
51,456,486
Revenue
4,696,650
15,029,280
3,131,100
12,023,424
2,191,770
9,017,568
3,600,765
13,526,352
63,216,909
Revenue
5,259,321
16,829,827
3,506,214
13,463,861
2,454,350
10,097,896
4,032,146
15,146,844
70,790,459
Revenue
5,883,275
18,826,481
3,922,184
15,061,185
2,745,528
11,295,889
4,510,511
16,943,833
79,188,886
COST OF GOOD SO
App-Lime
Cost of Raw Material in 250ml
Cost of Other Raw Material in 250ml
Total units of 250 ml
Cost of Total materail used for 250 ml

Total units of 1000ml
Cost of Total materail used for 1000ml
5
3
150,000
1,200,000
24
15
100,000
3,900,000
Carrot

3
3
100,000
600,000
20
13
80,000
2,640,000
Nonish

9
4
70,000
910,000
27
18
60,000
2,700,000
Grapefruit
7
5
115,000
1,380,000

Total Material Cost
23
15
90,000
3,420,000
16,750,000
Total Unit Produced
765,000
Packaging Cost per 250 ml

Packaging Cost per 1000ml
2
8
App-Lime
Total 250ml unit Packaging Cost
Total Packaging Cost
300,000
800,000
1,100,000
Carrot
200,000
640,000
840,000
Nonish
140,000
480,000
620,000
Grapefruit
230,000
720,000
950,000
3,510,000
Transportation Cost
2,000,000
Direct Labor Cost
1,440,000
Total Cost
23,700,000
Year 1
Beggining inventory
Total Cost of material
Direct labor
Packaging
Transportation Cost
Cost of Total goods available for sale
Ending inventory
Total COGS
Year 2
16,750,000
1,440,000
3,510,000
2,000,000
23,700,000
7,110,000
7,110,000
17,085,000
1,612,800
3,615,300
2,100,000
31,523,100
8,511,237
16,590,000
23,011,863
ST OF GOOD SOLD
Year 3
Year 4
Year 5
8,511,237
17,426,700
1,806,336
3,723,759
2,205,000
33,673,032
6,734,606
6,734,606
17,775,234
2,023,096
3,835,472
2,315,250
32,683,658
3,922,039
3,922,039
18,130,739
2,265,868
3,950,536
2,431,013
30,700,194
-
26,938,426
28,761,619
30,700,194
Cost of Goods Sold

Direct labor
Packaging
Transportation Cost
16,750,000
1,440,000
3,510,000
2,000,000
INCREMENTAL CASH FLOW

Initial Outlay
Cash flow
Year1
(43,433,910)
Year2
(669,399)
NPV
IRR
Profitibility Index
12,114,436
62,204,086.30
22%
2.4321
ASSUMPTION
COGS
20%
Cost of Goods Sold

Direct labor
Packaging
Transportation Cost
20,100,000
1,728,000
4,212,000
2,400,000
Initial Outlay
Cash flow
Year1
(43,433,910)
Year2
(4,082,199)
NPV
IRR
Profitibility Index
4,990,565
50,977,061.37
16%
2.17
DEBT & EQUITY PE

Debt
Equity
WACC
40
60
11%

Initial Outlay
Cash flow
Year1
(9,662,992)
Year2
899,739
NPV
IRR
Profitibility Index
10,933,116
62,204,086.30
22%
2.4321
ASSUMPTION
Debt
Equity
WACC
60%
40%
10%

Initial Outlay
Cash flow
Year1
(43,433,910)
(1,399,089)
NPV
IRR
Profitibility Index
Year2
11,495,136
62333429.25
21%
2.43513
SENSITIVITY ANALYSIS
CASH FLOW
Year3
19,943,549
SSUMPTION
Increase
CASH FLOW
Year4
Year5
24,421,153
38,167,474
Year3
Year4
22,056,830
Year5
43,589,102
78,856,961
EBT & EQUITY PERCENTAGE
CASH FLOW
Year3
17,643,647
Year4
Year5
21,386,786
33,728,350
CASH FLOW
Year3
19,450,094
Year4
Year5
24,071,161
37,981,030
SCENERIO ANALY
EFFECT OF PR
Base Scenerio
Original Production
Avg SP(Rs.)
Unit Produced
App-Lime
150,000
100,000
25
120
Carrot
100,000
80,000
25
120
Nonish
70,000
60,000
25
120
Grapefruit
115,000
90,000
25
120
Total Unit Produced
765,000
Growth Assumption
3%
5%
INCREMENTAL CASH FL
Initial Outlay
Cash flow
NPV
IRR
Profitibility Index
Year1
(43,433,910)
62204086.3
22%
2.4321
Year2
(669,399)
12,114,436
Best Scenrio
Increase in Original Production & Sales Prices @ 25%
Avg SP(Rs.)
Unit Produced
App-Lime
187,500
125,000
31
150
Carrot
125,000
100,000
31
150
Nonish
87,500
75,000
31
150
Grapefruit
143,750
112,500
31
150
Total Unit Produced
956,250
Growth Assumption
5%
6%
INCREMENTAL CASH
Initial Outlay
Cash flow
NPV
IRR
Profitibility Index
Year1
(43,433,910)
Year2
7,608,519
134,191,156.92
56%
4.0895
Worst Scenrio
Decrease in Original Production & Sales Price @15%
27,452,503
Unit Produced
Avg SP(Rs.)
App-Lime
127,500
85,000
21
102
Carrot
85,000
68,000
21
102
Nonish
59,500
51,000
21
102
Grapefruit
97,750
76,500
21
102
Total Unit Produced
650,250
Growth Assumption
2%
4%
INCREMENTAL CASH
Initial Outlay
Cash flow
NPV
IRR
Profitibility Index
Year1
(43,433,910)
30350985.65
2%
1.6987
Year2
(4,364,181)
5,100,525
NERIO ANALYSIS
EFFECT OF PRODUCTION
TAL CASH FLOW

Year3
Year4
19,943,549
24,421,153
Year5
38,167,474
AL CASH FLOW
Year3
Year4
41,395,497
50,910,680
Year5
70,656,962
AL CASH FLOW
Year3
Year4
10,269,480
12,783,751
Year5
24,270,462
Current Assets
Fixed Assets
Total Assets
Current Liabilities
Non Curent Liabilities
EQUITY
Total Liabilities & equity
BALANCE SHEET
Stores and spares
Stock in trade
Trade debts
Current portion of long term loans and advances
Advances, deposits, prepayments and other receivables
Cash and bank balances
Total C.Assets
Property,Plant Equiment
Capital Work In Progress
Intangible Assets
Long Term Loans & Advances
Long term Security Deposits
Total F.Assets
Total Assets
Year 2012
1,278,416
7,064,170
276,858
30,914
4,042,634
702,025
13,395,017
16,230,528
5,370,561
11,954
161,982
9817
21,784,842
35,179,859.00
Current portion of non current liabilities

Short term borrowings from associated company - unsecured
Short term borrowings - secured
Short term running finance under mark-up arrangements - secured
Customer security deposits - interest free
Trade and other payables
Interest and mark-up accrued
CONTINGENCIES AND COMMITMENTS
Total current liabilites
41,587
16,788,455
Long term Debt finances

Deferred taxation
Retirement benefits
Liabilities against assets subject to finance lease
Non current liabilities
7,848,050
2,476,871
440,377
13,690
10,778,988
4,950,000
4,175,236
149,791
7,343,507
128,334
Total Liabilities
Authorized capital
75,000,000 (2010: 75,000,000) ordinary shares of Rs. 10 each
Issued, subscribed and paid up capital
Share premium
General reserve
Liabilities against assets subject to finance lease
T.Equity
T. Equity and Liability
Difference
27,567,443
750,000
453,496
249,527
280,000
6,629,393
7,612,416
35,179,859.00
Year 2011
1,050,804
4,602,019
126,499
19,149
2,048,936
505,516
8,352,923
11,370,611
3,076,472
16,735
125,674
9,817
14,599,309
22,952,232.00
57,786
2,143,750
2,780,843
128,857
4,633,932
61,404
9,806,572
5,573,750
1,705,508
229,114
55,415
7,563,787
17,370,359
750,000
453,496
249,527
280,000
4,598,850
5,581,873
22,952,232.00
INCOME STATEMENT
Year 2012
Sales - net
Cost of goods sold
Gross profit
Distribution and selling expenses
Administration expenses
Operating profit
Operating expenses
Other operating income
EBIT
Interest
EBT
Tax amount
Net profit
Year 2011
64,824,364
(48,099,046)
16,725,318
(6,862,113)
(1,405,298)
8,457,907
(2,114,588)
159,545
6,502,864
51,487,302
(37,608,733)
13,878,569
(5,709,078)
(1,311,637)
6,857,854
(1,332,165)
170,491
5,696,180
6,502,864
(1,834,507.00)
5,696,180
(1,583,331.00)
4,668,357
4,112,849
CASH FLOW STATEMENT
Cash flow from operating activities

Cash generated from operations
Increase in long term security deposits
Increase in long term loans and advances
Retirement benefits paid
Finance cost paid
Taxes paid
Net cash generated from operating activities
Cash flow from investing activities

Fixed capital expenditure
Purchase of intangible asset
Sale proceeds of property, plant and equipment
Net cash (used in) investing activities
Cash flow from financing activities

Proceeds from long term finances
Repayment of short term borrowings from associated company-unsecured
Proceeds from short term borrowings - secured
Payment of finance lease liabilities
Dividend paid
Net cash generated from/(used in) financing activities
Net decrease in cash and cash equivalents
Cash equivalents at beginning of the year
Cash and bank balances at beginning of the year
Cash and cash equivalents at end of the year
W STATEMENT
Year 2012
Year 2011
8,384,781
(48,073)
(92,103)
(983,425)
(1,776,948)
5,484,232
7,618,810
(4,791)
(10,321)
(137,122)
(498,656)
(1,518,903)
5,449,017
(8,940,862)
111,945
(8,828,917)
(4,295,328)
(19,126)
41,654
(4,272,800)
2,000,000
(2,252,000)
4,950,000
(57,924)
(2,493,275)
2,146,801
(64,291)
(2,946,661)
(3,010,952)
(1,197,884)
(4,175,236)
702,025
(3,473,211)
(1,834,735)
(2,780,843)
505,516
(2,275,327)
RATIO ANLYSIS & INTERPRETATION

CURRENT RATIO
Year 2012
CURRENT ASSETS
CURRENT LIABILITIES
RATIO
Year 2011
13,395,017
16,788,455
8,352,923
9,806,572
0.797870739
0.851767876
QUICK RATIO
Year 2012
CURRENT ASSETS
INVENTORY
LIABILITIES
RATIO
Year 2011
13,395,017
7,064,170
16,788,455
8,352,923
4,602,019
9,806,572
0.377095272
0.382488804
WORKING CAPITAL
Year 2012
CURRENT ASSETS
CURRENT LIABILITIES
RATIO
Year 2011
13,395,017
16,788,455
8,352,923
9,806,572
-3393438
-1453649
INVENTORY TURNOVER IN DAYS

Year 2012
Year 2011
AVERAGE INVENTORY
COST OF GOOD SOLD
INVENTORY TURNOVER
NO. OF DAYS
3532085
(48,099,046)
-13.61774872
365
4067052
(37,608,733)
-9.247172891
365
RATIO
-26.80325562
-39.47152328
FIXED ASSETS TURNOVER RATIO

Year 2012
SALE
TOTAL FIXED ASSETS
RATIO
Year 2011
64,824,364
21,784,842
51,487,302
14,599,309
2.975663721
3.526694448
TOTAL ASSETS TURNOVER RATIO

Year 2012
SALE
TOTAL ASSETS
RATIO
Year 2011
64,824,364
35,179,859
51,487,302
22,952,232
1.842655594
2.243237259
LONG TERM DEBT TO EQUITY RATIO

Year 2012
Year 2011
LONG TERM DEBT

EQUITY
7,848,050
7,612,416
5,573,750
5,581,873
RATIO( IN %AGE)
51
50
GROSS PROFIT MARGIN

Year 2012
GROSS PROFIT
SALE
RATIO(IN %AGE)
Year 2011
16,725,318
13,878,569
64,824,364
51,487,302
25.80097508
26.95532386
NET PROFIT MARGIN

Year 2012
NET INCOME
SALE
MULTIPLY
RATIO (IN %AGE)
Year 2011
4,668,357
64,824,364
100
4,112,849
51,487,302
100
7.201546937
7.98808413
OPERATING PROFIT MARGIN
Year 2012
OPERATING INCOME
SALES
MULTIPLY
RATIO (IN %AGE)
Year 2011
159,545
64,824,364
100
170,491
51,487,302
100
0.246118882
0.33113213
RETURN ON EQUITY
Year 2012
NET INCOME
TOTAL EQUITY
MULTIPLY
RATIO (IN %AGE)
Year 2011
4,668,357
7,612,416
100
4,112,849
5,581,873
100
61.3255634
73.68223892
RETURN ON ASSETS RATIO

Year 2012
NET INCOME
TOTAL ASSETS
MULTIPLY
RATIO (IN %AGE)
Year 2011
4,668,357
35,179,859
100
4,112,849
22,952,232
100
13.26997075
17.91916795
TIME INTEREST EARNED RATIO

Year 2012
Year 2011
EBIT
INTEREST EXPENSES
6,502,864
1.00
5,696,180
1.00
RATIO
6,502,864
5,696,180
DEBT COVERAGE RATIO

Year 2012
Year 2011
NET INCOME
DEPRECIATION
INTEREST
CURRENT MATURITY OF LTD
4,668,357
-
4,112,849
1
-
RATIO
4,668,357
4,112,850
NTERPRETATION
INTERPRETATION
2011 IS BETTER THAN 2012

Assumptions About Capital Structure

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Assumptions About Capital Structure

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Assumptions about Capital Structure:

No of Pieces in 250 ml Tray

Units available for sale

Total Unit Produced

Units available for sale

Total Unit Produced

Units available for sale

Total Unit Produced

Units available for sale

Total Unit Produced

Units available for sale

Total Unit Produced

Total units sold

Total units sold

Total units sold

Total units sold

Total units sold

Cost of Total materail used for 250 ml

Cost of Total materail used for 1000ml

Cost of Total materail used for 250 ml

Cost of Total materail used for 1000ml

Cost of Total materail used for 250 ml

Cost of Total materail used for 1000ml

Cost of Total materail used for 250 ml

Cost of Raw Material in 1000ml

Cost of Total materail used for 1000ml

Total Material Cost

Total Unit Produced

Packaging Cost per 250 ml

Total Packaging Cost

Total Packaging Cost

Total Packaging Cost

Total Packaging Cost

Total Packaging Cost

Direct Labor Cost

Cost of Goods Sold

INCREMENTAL CASH FLOW

Cost of Goods Sold

INCREMENTAL CASH FLOW

DEBT & EQUITY PE

INCREMENTAL CASH FLOW

INCREMENTAL CASH FLOW

EBT & EQUITY PERCENTAGE

Total Unit Produced

Total Unit Produced

Total Unit Produced

TAL CASH FLOW

Non Curent Liabilities

Total Liabilities & equity

Current portion of non current liabilities

Long term Debt finances

CASH FLOW STATEMENT

Cash flow from operating activities

Cash flow from investing activities

Cash flow from financing activities

RATIO ANLYSIS & INTERPRETATION

INVENTORY TURNOVER IN DAYS

FIXED ASSETS TURNOVER RATIO

TOTAL ASSETS TURNOVER RATIO

LONG TERM DEBT TO EQUITY RATIO

LONG TERM DEBT

GROSS PROFIT MARGIN