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Projects Assignment

Demand and Financial Analysis for Domino’s

Submitted to:
Mrs. Kiran

Submitted by:
Chitwan Duggal
Deveshi Singh
Reetika Dhir
Upmanyu Rawal

Fast Food industry in India
The emergence of the fast food industry has, transformed urban food culture in
India to some extent. In India, fast food culture emerged after independence.
Eating at home used to be a significant aspect of Indian culture. However, over
a period of time, with a growth in the number of nuclear families, economic
growth and increasing per capita income as well as globalization, fast food
culture gained prominence. Similarly, children also resorted to fast food due to
their exposure to global urban culture and western cuisine which accelerated
their desire for cheap and delicious fast food. Moreover, fast food costs less than
traditional meals commencing with appetizer and concluding with dessert. With
the liberalization of the economy in 1992, new multinational fast food giants
targeted India as a huge potential market with their outlets. Burger King, Pizza
Hut, Domino’s Pizza, McDonald’s and KFC outlets are functioning in shopping
malls and other public areas. Changing consumer behaviour and favourable
demographics led India to witness a tremendous growth in fast food restaurant
industry.

 According to a new research report, ‘Indian Pizza Market Analysis’ by
RNCOS, the Indian fast food market has witnessed a robust growth over
the past few years, which earlier remained concentrated only in the
metropolitan cities.
 The pizza industry is expected to register a strong growth in the coming
years in tier-II and tier-III cities. According to Pizza Power 2013 State of
Industry Report, U.S, Brazil, Russia, India and China are seen as
emerging pizza markets of the world.
 They are being watched so closely that a quarterly newsletter called
‘BRIC’, has been created, focusing solely on them, delivering
information about new business developments in all four countries.
 Currently , Domino’s operates in more than 70 countries.
 The pizza market in India is worth, above 1500 crores, and is growing at
a CAGR (consumer annual growth rate) of 26% for the last 5 years, with
Domino’s alone having over 55% market share in organized pizza market
and 70% market share in pizza home delivery segment.

Dominos Pizza.  And to help Indians too to celebrate the October pizza month. superior quality. Shyam S. “30minutes nahi to free. “As the population grew techsavvy over the last couple of years. as a result of which. Domino’s Pizza  Jubilant Food Works Limited (the Company) is a Jubilant Bhartia Group Company. buy 1 get 1 free on Wednesdays are just a few tricks to stir the Indian appetite. The Company was incorporated in 1995 and initiated operations in 1996. Bangladesh and Sri Lanka. marketing vice president. even in times of economic slowdown. Harneet Singh Rajpal. Not surprisingly therefore. with a network of 500+ Domino's Pizza restaurants  Restaurants (as of 31st March. Mr.  Over the period since 1996. Domino’s began offering online ordering to Indian customers in late 2010. pizza chains are going beyond lucrative pricing offers. 2012)The Company is the market leader in the organized pizza market with a 54% market share and 70% share in the pizza home delivery segment in India. The Company is India's largest and fastest growing food service company. Nepal. Mr. The Company got listed on the Indian bourses in February 2010. kushiyon ki home delivery”. Domino’s Pizza India has remained focused on delivering great tasting Pizzas and sides. exceptional guest care and value for money offerings. Dominos opened its 600th store in India this year and plans to reach 800 stores by 2016. The Company & its subsidiary operates  Domino's Pizza brand with the exclusive rights for India. . shared. Bhartia. are the Promoters of the Company. Bhartia and Jubilant Enpro Private Ltd. more than 10% of sales came in through the web”. Hari S.

The Project This project outlines dominos expansion plans and venturing into the drive-through segment. Currently only Mcdonald’s and KFC have featured drive through outlets. in the Pizza foray there is no competition in terms of drive-through and Dominos already has an excellent market image of in-time delivery. Bangalore. Hoover’s states thatDomino’s is the “world's #2 pizza chain. . Kolkata. Marketing And Demand Analysis Future growth for Domino’s can be optimized with smart marketing decisions. Therefore. We also surveyed 221 U. Ahmadabad. both domestically and internationally. and within the pizza category Pizza Hut is #1.S. See Appendix E for our SWOT analysis of Domino’s. Competitors: Domino’s has many competitors both domestically and internationally. Jalandhar. To assess Domino’s marketing efforts. revenue. Mumbai. Domino’s is #2 and Papa John’s is #3. Bhopal. we analyzed Domino’s segmentation and positioning strategies. Domino’s faces competition from other regional and local competition. adults regarding their impression of Domino’s pizza product as well as their views on hypothetical loyalty programs intended to increase trial and repeat purchases. Competitive Analysis : Domino’s is the 14th-largest QSR by U. Pune. a) McDonald’s Corporation Inc.S. as well as other pizza take-out services like Papa John’s. Their competitors include fast food companies such as McDonald’s. Chandigarh and Vadodra. Beyond that. the crux of this project is based on estimating the financials of 10 new dominos outlets with drive-throughs across 10 different locations as: Delhi. and worldwide pizza delivery company giant Pizza Hut. Thus.

In 2008. With their well recognized logo.A massive worldwide franchise that specializes in the fast food industry is McDonald’s. As per a survey conducted in 2010. studies indicate a radical change in the consumption patterns of Indian consumers. Chicken wings and chicken strips are also a specialty (along with pizzas) for Papa John’s. They remain a large competitor of Domino’s with their increasing popularity.8 million net profit in 2008. McDonald’s revenues exceeded $23 million. Middle-class families as well as the youth prefer to have a burger worth ` 25 rather than that worth ` 50-75. nutrition and fat contained on the product pack. These measures have helped Indian fast food . This reveals that despite looking for taste and brand. They recorded a $36. it has been a noticeable trend that food consumption pattern of urban Indian families has changed dramatically with times owing to the growing influence of Western culture. nearly 80 per cent of the fast food consumers expect the fast food owners to implement required measures for reducing the harmful impact of fast food. c) Pizza Hut: Pizza Hut operates as a subsidiary to the food giant Yum! Brands. They specialize in pizza making. consumers in India are still inclined to low-price and health issues. Varying consumer behaviour: Talking about consumers. Besides. Incorporated: Domino’s competes with Papa John’s on the same level of pizza delivery and pizza takeout. such as baking and grilling that retain the flavor of food and also require lesser quantity of oil. b) Papa John’s International. major retailers in this area are now providing all necessary information like ingredients. Indians have started dining out and moved on to accept different varieties of delicious food from the world. McDonald’s has been involved in many legal issues such as being accused for false advertising and violation of fraud acts. these owners have adopted innovative cooking styles. Pizza Hut is even more focused on health conscious people by incorporating a salad bar into their sit down restaurant section and by serving nutritional pasta bowls. They also have an extremely strong brand image and compete with Domino’s for brand recognition.9 McDonald’s brand image is a major strength for them as people of all ages across the globe recognize the golden arches logo. This was a twelve percent increase from the previous year. who have traditionally been known for their price sensitiveness. Further. To tackle this issue.

higher prices have historically led to decreased sales. it seems that Domino’s targets markets with the greatest number of people. Domino’s has used the new product to address this major weakness. Domino’s revamped pizza has been very successful and has generated significant sales growth since being introduced. instead focusing on delivery and carryout customers. successfully reaching that growing segment of the market. so it can reach the greatest number of consumers possible while also improving its ability to meet customer demand. nearly all tariff and non-tariff . Domino’s created the 30-minute delivery guarantee and also marketed its use of the Heat Wave insulated delivery bag to keep delivered pizzas hot. Additionally. The majority of domestic stores are located in and around highly populated large or mid-sized cities or near college campuses. Customers are very price sensitive. It follows that Domino’s has sought to become a leader in online pizza orders. Domino’s uses geographic information software to locate its stores in optimal locations. our survey data showed that poor taste was the leading reason why customers avoid Domino’s. it appears Domino’s has been able to generate trial purchases from customers who previously had excluded Domino’s from their dining options. Domino’s appears not to have a specific target. In FY 2009. Given the positive results. Domino’s has achieved significant online orders through its website. Instead. Domino’s posted a 92% on-time delivery rate and had an average time of 12-15 minutes for pizza order-taking and production. Today.consumers select healthy and nutritious meal as well as protect them from the dangerous effect of unhealthy fast food. Domino’s does not offer dine-in areas at it stores. Government’s role: As far as the role of government is concerned. In the past. Customer Analysis & Market Segmentation : Domino’s target market segmentation is the consumer who is looking for inexpensive pizza quickly. With the economic liberalization in 1991. various initiatives in the recent past have resulted in the entry of many international Fast Food Retailers in the country. Demographically. Positioning & Marketing Mix: Domino’s has positioned itself well to reach the customer who values quickservice pizza.

user friendly and IT-enabled licensing system will be created to improve governance and compliance. the Indian government has also directed state governments to prohibit sales of fast food and carbonated drinks on school premises & check out all such items that lead to unhealthy eating from cafeteria within a 1. the government has increased the number of state laboratories for testing eatables and appointed more food safety officers to check food quality & hygiene instead of merely monitoring adulteration. Developing a Loyalty Program: According to Barclay’s. so that customers can know about what they are eating and what effect it can have on their health. As per the Food Safety and Standards Authority of India. the new rules and standards will make it mandatory for street food vendors to register with state health departments that are into policing hygiene. causing people to fall ill with many health-related problems like obesity. This step is a result of various studies that have shown that a typical fast food has very high density that causes people to eat more than they usually require. the country’s regulators have ordered food chains to provide product nutritional labeling at the time of sale.barriers have been removed or minimized from the Indian boundary that has helped many retailers to enter the growing Indian fast food industry. the average Domino’s customer orders five times per year while the average quick-service pizza customer orders an average of 17-18 . Besides. We recommend that Domino’s focus on both of these fronts to grow its business. Moreover. Develop a loyalty program to drive trial and repeat purchases. Opportunities for Growth : Future growth opportunities exist for Domino’s both domestically and internationally. diabetes and heart diseases. We have two primary recommendations: 1. Vendors with products that are found unhygienic or unsafe will face monetary penalties. It requires the food authority to issue licenses to food vendors only after ensuring that their products are safe and hygienic. 2. To try to ensure that India has the capacity to implement the new law. Increase expansion in China. pay down its long-term debt and increase value for shareholders.500 feet radius of schools. In addition.

To combat the hard economic times. A loyalty program would specifically address this underperformance. The infrequent Domino’s consumer subgroup had the strongest response to the status program. Domino’s could work to implement their online ordering strategy to all of their international and domestic stores. what type of pizza(s) they wanted. and a contact number so Domino’s could confirm the order before the pizzas are made. it would also help increase their revenues during these hard economic times.S. Domino’s should invest in marketing procedures like offering more coupons or special offers for certain reasons or times. adults. This directly correlates with their customers’ spending habits. such as the number of people attending. we proposed three different hypothetical loyalty programs. Each of the three subgroups we analyzed favored a “status program” that would give different benefits that would increase with repeat purchase frequency. inspired pizza has been effective at getting customers in the door. Domino’s can also enhance their customer base by improving their online ordering procedures. The user would also need to enter certain criteria. In our survey of 221 U. This data indicates that Domino’s is underperforming in driving repeat purchases. For example. They could allow the user to create an order and specify the date in which the pizzas would be needed. Domino’s could implement a strategy that would be helpful for customers who are looking towards Domino’s for parties or special events.times per year. The loyalty program could be coordinated with Domino’s current marketing efforts to promote its revamped pizza. Domino’s experienced negative sales in 2007 due to the decreasing demand of their customers. Because of the harsh conditions of the economy. Along with coupons and special offers. The new. Our survey data indicates that a status program would increase average order frequency by more than two orders per customer per year. This would allow for Domino’s to be more competitive in the market as well as be more flexible with their customers’needs . Domino’s advertising campaigns has had little to no appeal to their consumers during these hardships. many people are not able to spend as freely as they used to in years past. with data indicating that average order frequency would increase by more than three orders per customer per year. This not only would help combat competitors. and our data indicates that a loyalty program could help ensure they keep coming back. These data suggest that a status loyalty program would be effective in converting casual Domino’s consumers to more loyal Domino’s consumers. Short Term Recommendations: With the decline in the economy.

they could compete with Pizza Hut by creating a “Pizzone” or they could compete with Little Caesars by creating a quick and easy pizza that would be ready to eat in less than ten minutes. For example. and other items. By having a wider range of customers. Domino’s could offer soups. By doing so. New products in any business can turn into a competitive advantage for any business. Although their delivery time has been reduced. this would create numerous jobs for the local public. They can create products that include more poultry items such as chicken. it could have the possibilities to boost the countries revenues. By offering new menu items that are specific to the locations that their stores are located. open more stores around the world. they could offer new menu items specific to the store location. In addition. and develop new products. they can improve their customers visions of the company. duck. If Domino’s was able to create stores in third-world countries. salads and other such items that could complement their main course meals. However. Domino’s could expand their stores into new parts of the world. it would allow for Domino’s to open more stores in different areas of the world. Long Term Recommendations: Domino’s has continued to produce fantastic revenues over the past few years. By doing so. If Domino’s could expand into different areas around the globe. Domino’s could also continue to improve their delivery strategy. Also. Domino’s can expand further into India and offer better products that do not contain beef. Domino’s can use various strategies in order to increase their customer base as well as international expansion in the long run. If Domino’s can implement a better way of taking and delivering a pizza at a faster pace. Domino’s could also offer more white sauce products on their menu rather than the traditional red sauce that the majority of their products contain. customers can experience domino’s superior products as well as maintain their countries local customs and culture. All of the strategies would continue to better their brand recognition across the world. it would better help customers live their lives because they could afford a cheaper food as well as work for Domino’s and create money for their family. Domino’s can create more products that would better suit their customer’s wants. They could pull . there are always situations where customers believe their pizza could have been delivered faster.In association to their better online strategy. For example. For example. they could increase their already strong financials as well as create a stronger customer base. as well as stimulate the local economy. which would increase their market share as well as profits. By offering more products.

they have experienced many situations that have made them become a better company. and increase their brand name across the globe..  Promotion: Continuous price promotion such as two 2-topping pizzas for $5. domestic store delivery covers the majority of households. #1 pizza delivery company in the U.  Place: With almost 5000 franchises in the U. SWOT Analysis Strengths: Product:  Newly revamped pizza recipe brought in high growth levels for the first three quarters of 2010.  Market-leading online ordering and website features. Total operational process is completed within 12-15 minutes. with market share of 18.S. whether new or old.everything together and market certain items for certain parts of the world.99 each.4%. Price:  Competitively priced product.S.  Focused menu enables quality consistency and operational efficiency. . which will help them in the long run become an even greater one.  Strong brand name. But with all the challenges that are facing Domino’s.

survey respondents still said that “does not taste good” and “low quality” were the primary reasons they did not order Domino’s.Weaknesses: Product:  Despite aggressive marketing efforts to rebrand Domino’s as a quality. great tasting pizza.  Proposition for investors is limited. Promotion:  Minimal incentive customer loyalty. Price:  The low price may actually be working against Domino’s efforts to rebrand as a high quality. Place:  Less-than-optimal international presence. for . great tasting pizza company. Can’t promise shareholders that they can guarantee strong returns.

 Place: Supply chain not positioned to address potential sustainability regulations. health is becoming an increasing concern in the U. Promotion:  Challenging to continue meeting customer expectations that have now .  Prices in commodities such as cheese increasing.  Ability to increase proportion of total sales placed online from 20% currently.Opportunities: Product:  According to survey results. One slice of Domino’s new pizza contains as much as two-thirds of a days maximum recommended amount of saturated fat. Threats: Product:  With obesity rates on the rise. frequent Domino’s pizza consumers prefer ordering online at a much higher rate than the total respondents. Place:  Domino’s believes it has achieved 50% of its growth potential across its top 10 international markets.  Minimum wage increases. suggesting Domino’s could establish themselves as an industry leader in online ordering.S.

13 17235 49529.57 1723.57 108.5 Sales = Y 80.17 944.been inflated by new.68 8138.52 765.57 217. higherquality product Trend Analysis Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 SUM AVERAGE T 1 2 3 4 5 6 7 8 9 10 55 5.12 5356.7 628.24 1017.22 466.5 6283.91 475.55 2853.39 236.12 1569.44 T2 1 4 9 16 25 36 49 64 81 100 385 .03 313.61 155.37 TY 80.36 1407.88 12668.

b = 181.44 .

49 2714.071616624 0.077141217 0. the demand projections for the next 10 years are as follows: Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Sales 80.066830452 0.100368971 0.55 + 181.083589406 0.03 313.06264393 0. as per the above trend analysis.37 3077.111566818 0.61 2352.05 2533.29 1807.224450649 -0.329958056 0.73 1989.518952314 0.= -369.609269852 0.430715404 0.39 236.058951007 .81 3259.25 Rate of growth 0.36 1407.348020355 0.52 765.5 1626.329465266 0.056402669 0.44t Therefore.514829091 0.57 1723.61 155.93 2896.24 1017.17 2170.091213923 0.383551545 0.91 475.57 108.

whereas the X axis comprise of the years mentioned on the right hand side of the graph from 2015 onwards. .The above chart indicates the sales figures in crores on the Y axis.

Jalandhar.65 crores which includes cost of land @Rs.6. Bangalore.00 Term 7293. Currently only Mcdonald’s and KFC have featured drive through outlets. Compound Walls for Rs. Therefore.00 3908.00 lacs .00 lacs.00 lacs which includes Site development Rs. Kolkata. the crux of this project is based on estimating the financials of 10 new dominos outlets with drive-throughs across 10 different locations as: Delhi.Financial Analysis of Dominos This project outlines dominos expansion plans and venturing into the drivethrough segment. The financial dimensions of the project are as follows: Cost of the Project and Means of Finance: Cost of the project Particulars Land & Site Development Building & Civil Work Plant & Machinery: 1.00 lacs and entrance and main gate Rs.00 lacs.00 565.24.58 crores .0.00 1133. Imported 2. Bhopal. Chandigarh and Vadodra. Rs.00 11215.80.00 605. Pune.00 287. Indigenous Misc. Thus.20.00 Land & Site Development: The total costs of land and site development is estimated for Rs. Mumbai. in the Pizza foray there is no competition in terms of drive-through and Dominos already has an excellent market image of in-time delivery.00 35.00 1708. Building & Civil works: .00 lacs per outlet at the total cost of Rs. internal & approach roads for Rs.18.00 Total 11215.00 Capital 3922.67.Fixed Assets Contingency Security Deposits Preliminary and Preoperative expenses Working Capital Margin Total Amount in lacs Means of Finance Amount Particulars Amount in in lacs lacs 765. 7. Ahmadabad.98 crores including registration charges of Rs.5.Site development would require cost of Rs.00 Loan 2209.

DG Sets.33 crores include Oil Recycling Unit. Project establishment expenses. LC expenses & Interest During Construction (IDC) period.09 crores) and indigenous (Rs.61.08 crores. 11.05 crores mainly comprises of processing fees. The Ovens and frying vats shall be imported from Germany.04 LC EXPENSES 0.39. MFA. furniture and lighting of reputed suppliers. stoves. Plant and Machinery: The company shall install specialized kitchen equipment in the form of vats.17. the contingency provision of Rs 2.As per project report.e @ 3% of cost of building. Transformers. grills.21 TOTAL 6.87 crore i. refrigerators. Electrical Installations & Production accessories etc.20 Interest during construction 4. Plant & Machinery. Keeping in view the size of the project. The cost of proposed Plant & machinery comprising imported (Rs. The cost of buildings has been estimated Rs. ovens. the company proposes to construct the building with RCC Roofing at the chosen locations. Particulars Amount Upfront fees & appraisal fee 0. boilers.05 Contingencies The company has taken contingency provision of Rs 2. Misc.08 crores) has been estimated Rs. Preliminary & Preoperative Expenses : Preoperative Expenses for Rs. 6.17 crores.60 Project Establishment 1.87 crore is considered reasonable. vents. Home delivery vehicles. .22. Fixed Assets: The cost for Misc Fixed Assets estimated for Rs.

0 0 3922.7 5 4427.22 crores and term loan of Rs 72.20 24.20 24. 99 ASSETS .80 479. The Debt equity ratio of the project is 1.9 3 1809.3 2 260.2 2 1540.46 Bank Borrowing CC 1382.0 0 3922. 61 16188.00 22.Working Capital Margin: Working capital margin has been projected at Rs 5.8 9 3386.20 Total 13357.47 1244. FINANCIAL DETAILS Projected Balance Sheet LIABILITI ES Rs.2 6 1810.0 4 2344.20 24.6 0 1351.80 479.86:1. 98 14312.00 24.0 0 3922.0 2 1607. 41 13997.0 0 3922. which is considered acceptable keeping in view the level of operations in FY 2014-15.80 479.15 crores will be met through the promoters contribution of Rs 39. 82 14688.20 24.65 crores. 08 15123.0 0 Surplus & Profit 366.1 8 1302. 45 15622.9 9 1802.20 24.0 0 3922.0 0 3922.80 Expenses Payable 20.48 479.0 8 1415.2 7 1812. 41 13533.93 crores.0 0 3922. In lacs 2015 2016 2017 2018 2019 2020 2021 2022 Capital (including quasi capital) 3922. Means of finance: The estimated cost of the project at Rs 112.3 0 Sundry Creditors 373.7 8 1476.80 479.2 0 Secured Term Loan 7293.6 1 5469.80 479.17 426.0 0 6511.3 1 1807.3 9 1595.2 7 1811.85 688.

9 3 1412.2 0 7294. 41 13997. 78 17692.00 35.9 3 1412. 41 11303.1 8 4205.20 737.00 500. 61 16188. 41 11303.41 1451.00 500.64 17. 00 Depreciation 664.52 737.00 400.6 5 10047.0 9 3445.8 2 6409. 00 10615.72 15.62 291. 41 13533.91 Stores & Others 13.00 35.3 2 6861.9 6 9065.00 500. 54 17676.Gross Block 10615. 82 14688.2 9 15231.0 6 6023.20 737.4 2 2354. 68 17692.64 17.00 Noncurrent asssts 35. 45 15622.65 729.50 291.00 35.39 581.64 Sundry Debtors 528. 41 .9 3 1412.9 3 1412. 44 17691.4 6 7406.20 Other Current Assets 200.00 35.11 583. 47 11303.96 Finished Goods 453.6 8 3753.70 290.6 7 8857. 00 10615. 00 10615.9 3 1412.0 6 4638.00 35.3 3 4704. 00 10615.24 582. 98 14312.68 17.64 17.5 6 5090.98 516.20 290.00 300.04 1549. 00 10615. 41 11303.00 35.02 736.5 8 8180.00 Total 13357.41 634.00 35. 43 17692.7 0 Net Block 9950.00 583.00 500. 08 15123.05 291.14 737. 00 10615.9 3 Stock in process 226.9 3 1412. 99 Projected Profitability & Cash Flow (For the entire period of TL) Year 2015 2016 2017 2018 2019 2020 2021 2022 Net Sales 9511.40 580.64 17.0 5 Closing Stock Raw Material 1098. 41 11303. 41 11303. 00 10615.64 17.76 579. 55 17496. 79 Raw Material 6593.3 0 Cash & Bank 849.9 4 1255.99 258.4 2 2434.4 4 5524.00 500.9 4 5976.8 0 3320.38 289.

61 206.7 8 1476.38 885.85 688.3 9 213.2 2 1540.7 8 1476.0 2 1607.38 885.53 151.9 8 2236.00 1.32 803.37 495.6 0 1351.8 5 2129.92 498.85 688.38 885.Gen.38 885.32 5.1 6 2361.48 473.23 1198.5 8 2211.78 422.0 1 2120.00 Deferred Tax .00 0.8 4 2155.Other manufacturin g expenses 1300.2 0 Provision Income Tax Profit after tax Cash accrual Fund Flow Statement 1.57 80.6 0 Depreciation 664.44 624.38 885.47 1244. & Admn.65 666.6 4 2137.5 8 2016 2017 2018 2019 2020 2021 2022 1351.0 2 1607.07 366.31 55.0 0 0 0 0 0 0 0 0 Increase in CC/BB 1382.17 55.03 Increase in Current Liabilities 393.38 885.00 0.6 0 2425.7 9 2192.91 493.8 0 926.38 885.79 481.00 0.0 8 1415.51 488.00 1.4 0 2492.33 1.4 6 2301.38 Interest 909.9 4 Selling.00 0.38 885.60 Depreciation 664.13 478.47 1244.2 0 1030.53 322.62 1.38 885.0 0 0 0 0 0 0 0 0 Increase in Term Loan 7293.4 7 1076.38 885.15 585.38 Increase in Capital 3922.5 5 2173.8 8 1573.04 885.38 885.24 737.28 865.36 775. SOURCES OF FUND 2015 Profit After Tax 366.2 2 1540.1 8 1932.38 885.51 0.04 885.expen se 277.0 8 1415.22 490.

7 7 2391.28 108.1 4 1150.00 Repayment of Term Loan 0.4 2 2354.85 4977.6 1 10615.4 2 2354.2 1 1450.8 6 1041. 00 0.4 6 7406. 44 1842.2 3 Surplus 849.0 9 3445.00 0.6 7 1451.8 6 1041.2018 (Projected) 3922.00 3922.00 3922. 04 1240.00 0.2 3 1258.00 0.3 7 849.7 6 1043.0 6 6023.4 9 2362.03.41 1451.90 1.2016 (Projected ) 31.4 6 7406.0 5 2.00 0.37 447.8 1 2242.4 0 1383.3 3 4704.4 0 2493.00 0.6 7 8857.00 Total 13172.00 0.38 Non current Assets 35.01 902.00 4288.7 6 1489.03.41 602.32 6221.00 3922. DISPOSITI ON OF FUND Increase in Fixed Assets Investment Opening Cash & Bank Closing Cash & Bank 0 849.92 7573.8 6 1041.00 0.85 4977.0 4 459.03.8 6 1041.04 .39 1041.61 5469.41 SALIENT FINANCIAL INDICATORS 31.8 6 Increase in Current Assets 2522.89 3386.2017 (Projected ) 31.6 0 2426.00 0.92 7573.2 0 1043.2 0 1043.03.3 3 4704.0 6 6023.8 6 1041.75 4427.00 0.00 0.00 6511.00 0.2015 (Projected ) a) Paid-up Capital Includes Application Money b) Net Worth (Revaluation Reserve) c) Tangible Net Worth (excluding Revaluation Reserve) d) Long Term Secured Loans (Rupees in Lacs) 30.00 781.00 4288.0 8 2302.32 6221.7 4 1319.99 1.8 5 1043.00 0.35 1.34 1.Total 14021.0 9 3445.67 1091.00 0.

00 1793.89 1573.34 1545.78 6983.47 1076.38 909.00 2.44 1.65 366.93 814.60 1351.03% .89 b)Considering Term liab.53 151.72 1.93 3748.44 t) Net Sales 9511.45 c)Considering unsecured loan as quasi capital.14% 14.22 1.75 35.98 2236.15 585.31 1807.00 2046.67 35.41 634.99 1802.51 3.23 1198. as CL) q) Current Ratio (without T/L instl.45 4432.11 1.e) Long Term unsecured Loans ( Quasi Capital) f) Net Fixed Assets including Capital work-in-progress g) Capital work-in-Progress h) Noncurrent assets i) Inventories 0 0 0 9065.00 2301. Only 1.41 1751.10 2.56 1490.52 1.TOL/TNW 2.16 528. Due within 1 yr.45 3684.85 2129.86 n) Bank Borrowings 1382.85 688.02 736.44 u) Operating Profit/(Loss) 447.55 17496.50 1346.06 1030.29 15231.38 885.65 2923.42 2754.80 926.54 17676.58 8180.36 80.45 664.89 s) Gross Sales 9511.39 1595.25 0.82 0 0 0 0 2020.75 1936.11 1.13 478.47 1244. Due within 1 yr.33 l) Total Current Assets 3371.96 0 j) Receivables o) Net Working Capital p) Current Ratio (with T/L 23nstall. as CL r) Debt-Equity Ratio a)Considering all outside Liab.49 2434.17 2.tax and depreciation(PBDIT) x) Depreciation 0 9950.87% 1.10 0.32 1.54 17676.38 839.52 k) Other Current Assets 1049.00 2299.73 2.29 15231.86 1545.38 885.61 3629.55 17496.08 2.04 885.09 3945.65 729.44 60.25 0.82 5782.20 0 0 35.71 v) Other income w) Profit before interest .01 m) Current Liabilities 1174.71 0.72 1.60 1722.63 35. y) Interest z) Tax aa) Profit after tax(PAT) bb) Cash accruals cc) Increase in Net sales (%) -- 0 7294.

2015 is marginally below the indicative level of 1.64% ff) Interest as % to Net Sales 9.15% 5.86% 4. the current ratio works out to 2.32 as on 31.17% 21. The company has adopted Straight Line method for computation of depreciation resulting more profit in the entail years.64% 17.05 ii) Fixed assets to Secured Term Liabilities 1.87% 6.24% gg) Return on Capital Employed (%) hh) Interest Cover (Times) 10.47% 15.2015 and 1.40 crores in the next FY 2015-16.03.dd) % of Gross profit to Net Sales 24.11 as on 31.174. .10.97% ee) PAT to Net Sales (%) 3.2016.47 crores during FY 2014-15 and Rs.15 REVIEW OF FINANCIAL POSITION AND WORKING RESULTS: Growth in operations: The dominos fast food restaurant project is scheduled to start commercial operation from November 2014.52% 7. 7. The PBT/sales ratio comes to 4.11% 7.97% 23.33 which is due to term loan installment of Rs.97 crores which is on account of increased capacity utilization at 80% and 90% with full year working during the FY 2016 & FY 2017 respectively. .22 2.44 3.03. The company has projected turnover of Rs.53 1.32 crores & Rs.03.56% 7.11crores (9 months working) at 70% capacity utilization during FY2015.81% 23. Excluding the term loan instalment due next year from current liability. 8. Profitability (PBT/net receipt): The company has projected PBT at Rs.85 2. TOL / TNW: The TOL/TNW has been projected at 2.42 4.84% 2.67% 18. Current Ratio: The projected current Ratio of the company at 1.51 % respectively and is improving further due to increase in sale turnover.66 1. 152. The company has projected sale turn over at Rs.81 crores due next year taken as current liability. 4.72 as on 31.70 % & 5. 95.

98 1396.13+ scrap value Rs.59% We are of the view that the project may be acceptable as The IRR 18.52 830.39 =5 Years 10 months b) Net Present Value : Amount in lacs Year Cash Out flow Cash Inflow 1 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 2 11215.2243.26 4779.60% after considering Loan @14% and equity @10% d) Internal Rate of Return: 18.60% of cost of capital.51 722.59 5 Present value of the Net Flow(4x5) 6 881.40 2492.02 1077.17 1555.00 23867.38 1228.03.88 1573.58 2536.25 1163.98 2236. Project Indices: a) DSCR 2.17 Net Cash Accrual 4 Discounting Factor @18.16 2361.15 945.85 2129.The current ratio has been estimated 1.2016 which is well above the benchmark level.60 2425.00 3 1030.46 2301.44 as on 31.15/19.49 b) Debt Equity Ratio(Considering term 1. Capital Budgeting a) Pay Back Period : 112.59% is more than 12.10 1345.52 .34 c) Cost of Capital = 12.13 1145.13 2536.

projected adequate free cash flow for the next 8 years and a ready available market as per the demand analysis.28% e) Return on Capital Employed 15.67% f) Interest Coverage Ratio 2.44 Conclusion: In light of the above financials and analysis of the fast food restaurant project. due to the ratio compilation which is in line with the industry averages.Liability) c) Pay Back Period 5Years 10 Months d) Break Even Point 57. A contingency fund is there for unforeseen circumstances comprising sensitivity analysis. it as a viable project. Also the fast food industry industry shows signs of profitable growth in the near future. .