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I

Estimation of Deal Size


Deal Value
No. of Units

II

600,000.00 ('000)
200

Delivery Schedule
Year

1
2
3
4
5
6
7
8
9
10

VI

2016 - 2017
2017 - 2018
2018 - 2019
2019 - 2020
2020 - 2021
2021-2022
2022-2023
2023-2024
2024-2025
2025-2026

Component Costs

Engine - Kit
Engine - Assembling Charge
Engine - Bought-Out
Rotor - Kit
Rotor - Assembling Charge
Rotor - Bought-Out
Fuselage - Domestic
Fuselage - Imported
Cabin - Domestic
Cabin - Imported
Avionics Suite
Other Accessories - Domestic
Spares

('000)
$
$
$
$
$
$
$
$
$
$
$
$
$

405.00
135.00
675.00
324.00
108.00
540.00
303.75
405.00
202.50
270.00
405.00
135.00
270.00

Working Capital Cycle

Raw Material Coversion Period


WIP Conversion Period
FG Conversion Period
Receivables Period
Accounts Payable Period

Phase
II

Days
48
30
90
60
45

10
10
10
10
10
10
10
10
10
10
100

7
7
7
7
7
7
7
7
7
7
70

Other Assumptions
1
2

Phase

Total

III
3
3
3
3
3
3
3
3
3
3
30

20
20
20
20
20
20
20
20
20
20
200

4
5

Other Assumptions
Markup on Cost Price

12.50%

Other Expenses at % of Revenue


Salaries and Wages
Utilities
Miscellaneous Expenses

6%
3%
1%

Long-term Debt
Opening Balance
Interest Rate
Annual Repayment

17,500.00
9.00%

1,750.00

Minimum Cash Level to be Maintained

1,000.00

Exchange Rate
1 USD in INR

65.00

Tax Rate

30%

(All values are in Rs. Lacs)


Hindustan Aeronautics (FY2014)

Revenue
Less: Excise Duty
Net Rev from Operations
Other Income
Total Rev

FY2014
As % of Revenue
1,513,589.00

110.00
1,513,479.00

261,847.00
1775326
100.00%

Expenses
Cost of Materials Consumed
Purchase of Stock in Trade
Change in Inventories
Employee Benefit Expense
Finance Cost
Depreciation
Other expense
Expense Capitalized
Provisions

1,460,826.00

835,936.00

78,908.00

-74,490.00

268,544.00

97.00

60,251.00

139,377.00

52,910.00

99,293.00

82.28%
47.09%
4.44%
-4.20%
15.13%
0.01%
3.39%
7.85%
2.98%
5.59%

PBT
Less: Tax

314,500.00
94,350.00

20.78%

PAT

220,150.00

Detailed Cost Break Up


Component
Engine - Kit
Engine - Assembling Charge
Engine - Bought-Out
Rotor - Kit
Rotor - Assembling Charge
Rotor - Bought-Out
Fuselage - Domestic
Fuselage - Imported
Cabin - Domestic
Cabin - Imported
Avionics Suite
Other Accessories - Domestic
Spares
Total

Raw Material
Production Charges

Aircraft - Type
II

263.25

87.75

III
263.25
87.75

210.60
70.20

438.75

351.00

263.25

175.50
263.25
87.75
175.50

1,755.00

351.00
197.44

197.44

131.63

131.63

263.25
87.75
175.50

263.25
87.75
175.50

1,557.56

1,487.36
1,599.98

1,294.31
87.75

1,153.91
157.95

Unit Selling Price


in Rs. Lacs
Imported
Hybrid
Domestic

Total Revenue

376,171.71

2,005.71
1,780.07
1,699.84

(All values are in Rs. Lacs)


I

Sales Projections
I
Units Sold
Revenue

II

Revenue
Revenue

III

Cash Collection

10
20,057.14

Year 1
II
7
12,460.50

Cash Sales
Credit Sales

IV

Accounts Receivable
Opening Balance
Sales
Collections
Closing Balance

Accounts Payable
Opening Balance
Raw Material Bought
Type 1
Type 2
Type 3
Production Cost
Payment
Closing Balance

VI

Inventory
Average Inventory Levels
RM
WIP
FG

VII

Other Expenses
Total
Salaries and Wages
Utilities
Miscellaneous Expenses

VIII Depreciation Schedule

Gross Block

SLM

Land
Building
Plant and Equipment
Furniture and Fixtures
Vehicles
Office Equipment
Roads and Drains
Water Supply
Runways
Total

IX

Fixed Assets
Opening Balance
Additions
Deductions
Depreciation for the Year
Closing Net Block

Debt Repayment Schedule


Opening Balance
Repayment
Interest Expense
Closing Balance

1,500.00
5,000.00
12,000.00
800.00
500.00
1,000.00
500.00
2,000.00
2,500.00

0.00%
5.00%
2.50%
5.00%
7.00%
8.50%
3.75%
4.50%
5.00%

ar 1

III
3
5,099.53
37,617.17

Year 1
37,617.17

10
20,057.14

Year 1

31,347.64
6,269.53

37,617.17
31,347.64
6,269.53

Year 2
37,617.17

37,617.17
-

Year 3
37,617.17

5,099.53
37,617.17

Year 4
37,617.17

Year 3

37,617.17
-

Year 2
6,269.53
37,617.17
37,617.17
6,269.53

Year 1

III

7
12,460.50

Year 2

Year 1

Year 2
II

Year 4

37,617.17
-

Year 3
6,269.53
37,617.17
37,617.17
6,269.53

Year 4
6,269.53
37,617.17
37,617.17
6,269.53

31,160.03
17,550.00
9,060.19
3,461.74
1,088.10

Year 2
3,895.00
31,160.03
17,550.00
9,060.19
3,461.74
1,088.10

Year 3
4,381.88
31,160.03
17,550.00
9,060.19
3,461.74
1,088.10

Year 4
4,442.74
31,160.03
17,550.00
9,060.19
3,461.74
1,088.10

27,265.02

30,673.15

31,099.17

31,152.42

3,895.00

4,381.88

4,442.74

4,450.35

Year 1
14,821.17
4,154.67
2,666.63
7,999.88

Year 2
14,821.17
4,154.67
2,666.63
7,999.88

Year 3
14,821.17
4,154.67
2,666.63
7,999.88

Year 4
14,821.17
4,154.67
2,666.63
7,999.88

Year 1
3,761.72
2,257.03
1,128.52
376.17

Year 2
3,761.72
2,257.03
1,128.52
376.17

Year 3
3,761.72
2,257.03
1,128.52
376.17

Year 4
3,761.72
2,257.03
1,128.52
376.17

Year 1

Year 2

Year 3

Year 4

250.00
300.00
40.00
35.00
85.00
18.75
90.00
125.00
943.75

250.00
300.00
40.00
35.00
85.00
18.75
90.00
125.00
943.75

250.00
300.00
40.00
35.00
85.00
18.75
90.00
125.00
943.75

250.00
300.00
40.00
35.00
85.00
18.75
90.00
125.00
943.75

Year 1
25,800.00
943.75
24,856.25

Year 2
24,856.25
943.75
23,912.50

Year 3
23,912.50
943.75
22,968.75

Year 4
22,968.75
943.75
22,025.00

Year 1
17,500.00
1,750.00
1,575.00
15,750.00

Year 2
15,750.00
1,750.00
1,417.50
14,000.00

Year 3
14,000.00
1,750.00
1,260.00
12,250.00

Year 4
12,250.00
1,750.00
1,102.50
10,500.00

Year 3
II

I
10
20,057.14

Year 5
37,617.17

7
12,460.50

Year 5

37,617.17
-

Year 4
III

Year 6
37,617.17

5,099.53
37,617.17

Year 7
37,617.17

Year 6

37,617.17
-

Year 5
6,269.53
37,617.17
37,617.17
6,269.53

I
10
20,057.14

Year 7

37,617.17
-

Year 6
6,269.53
37,617.17
37,617.17
6,269.53

Year 5
4,450.35
31,160.03
17,550.00
9,060.19
3,461.74
1,088.10

31,159.07

Year 8
37,617.17

Year 8

37,617.17
-

Year 7
6,269.53
37,617.17
37,617.17
6,269.53

Year 8
6,269.53
37,617.17
37,617.17
6,269.53

Year 6
4,451.30
31,160.03
17,550.00
9,060.19
3,461.74
1,088.10

Year 7
4,451.42
31,160.03
17,550.00
9,060.19
3,461.74
1,088.10

Year 8
4,451.43
31,160.03
17,550.00
9,060.19
3,461.74
1,088.10

31,159.91

31,160.01

31,160.02

4,451.30

4,451.42

4,451.43

4,451.43

Year 5
14,821.17
4,154.67
2,666.63
7,999.88

Year 6
14,821.17
4,154.67
2,666.63
7,999.88

Year 7
14,821.17
4,154.67
2,666.63
7,999.88

Year 8
14,821.17
4,154.67
2,666.63
7,999.88

Year 5
3,761.72
2,257.03
1,128.52
376.17

Year 6
3,761.72
2,257.03
1,128.52
376.17

Year 7
3,761.72
2,257.03
1,128.52
376.17

Year 8
3,761.72
2,257.03
1,128.52
376.17

Year 5

Year 6

Year 7

Year 8

250.00
300.00
40.00
35.00
85.00
18.75
90.00
125.00
943.75

250.00
300.00
40.00
35.00
85.00
18.75
90.00
125.00
943.75

250.00
300.00
40.00
35.00
85.00
18.75
90.00
125.00
943.75

250.00
300.00
40.00
35.00
85.00
18.75
90.00
125.00
943.75

Year 5
22,025.00
943.75
21,081.25

Year 6
21,081.25
943.75
20,137.50

Year 7
20,137.50
943.75
19,193.75

Year 8
19,193.75
943.75
18,250.00

Year 5
10,500.00
1,750.00
945.00
8,750.00

Year 6
8,750.00
1,750.00
787.50
7,000.00

Year 7
7,000.00
1,750.00
630.00
5,250.00

Year 8
5,250.00
1,750.00
472.50
3,500.00

Year 4
II

III

7
12,460.50

Year 9
37,617.17

5,099.53
37,617.17

Year 10
37,617.17

Year 9

37,617.17
-

Year 10

43,886.70
-6,269.53

Year 9
6,269.53
37,617.17
37,617.17
6,269.53

Year 10
6,269.53
37,617.17
43,886.70
-

Year 9
4,451.43
31,160.03
17,550.00
9,060.19
3,461.74
1,088.10

Year 10
4,451.43
31,160.03
17,550.00
9,060.19
3,461.74
1,088.10

31,160.02

35,611.46

4,451.43

Year 9
14,821.17
4,154.67
2,666.63
7,999.88

Year 10
14,821.17
4,154.67
2,666.63
7,999.88

Year 9
3,761.72
2,257.03
1,128.52
376.17

Year 10
3,761.72
2,257.03
1,128.52
376.17

Year 9

Year 10

10
20,057.14

Year 5
II

III

7
12,460.50

Total
376,171.71

5,099.53
37,617.17

250.00
300.00
40.00
35.00
85.00
18.75
90.00
125.00
943.75

250.00
300.00
40.00
35.00
85.00
18.75
90.00
125.00
943.75

Year 9
18,250.00
943.75
17,306.25

Year 10
17,306.25
943.75
16,362.50

Year 9
3,500.00
1,750.00
315.00
1,750.00

Year 10
1,750.00
1,750.00
157.50
-

I
10
20,057.14

Year 6
II

III

7
12,460.50

I
3

5,099.53
37,617.17

10
20,057.14

Year 7
II
7
12,460.50

ear 7
III

I
3

5,099.53
37,617.17

10
20,057.14

Year 8
II

Year 9
III

7
12,460.50

I
3

5,099.53
37,617.17

10
20,057.14

Year 9
II

III

7
12,460.50

I
3

5,099.53
37,617.17

10
20,057.14

Year 10
II
7
12,460.50

III
3
5,099.53
37,617.17

Total

376,171.71

(All values are in Rs. Lacs)

Total Receipts
Opening Cash Balance
Cash Sales
Collection from Accounts Receivables

Year 1
31,347.64

Total Receipts w/o OverDraft

31,347.64

OverDraft Reqd (Yes/No)


Over Draft

Yes
4,004.10

Total Receipts

35,351.74

Accounts Payable
Expenses
Capital Expenditure
Interest Expense
Loan Repayment

27,265.02
3,761.72

1,575.00
1,750.00

Total Payments

34,351.74

Balance Before Repayment of Loan

1,000.00

Balance After Repayment of Loan (Closing Cash Balance)

1,000.00

Minimum Balance Required

1,000.00

Balance Above Minimum

Total Payments

Loan Repayment
Opening Balance
Amount Borrowed
Repayment of Loan
Closing Balance

4,004.10
4,004.10

Year 2
1,000.00
37,617.17

38,617.17

No

Year 3
1,000.00
37,617.17
38,617.17

Year 5
1,000.00
37,617.17

Year 6
1,000.00
37,617.17

38,617.17

38,617.17

38,617.17

253.71

Yes
149.46

38,766.63

38,617.17

38,617.17

31,159.91
3,761.72
787.50
1,750.00

Yes
-

Year 4
1,000.00
###
37,617.17

38,870.88

No

No
-

38,617.17

30,673.15
3,761.72

31,099.17
3,761.72

31,152.42
3,761.72

31,159.07
3,761.72

1,417.50
1,750.00

1,260.00
1,750.00

1,102.50
1,750.00

945.00
1,750.00

37,602.37

37,766.63

37,615.79

37,459.12

1,014.80

1,000.00

1,000.00

1,001.38

1,158.05

1,000.00

1,000.00

1,000.00

1,000.00

1,000.00

1,000.00

1,000.00

1,000.00

1,000.00

1,000.00

14.80

1.38

158.05

4,004.10
14.80
3,989.29

4,392.47
1.38
4,391.09

4,391.09
158.05
4,233.04

37,870.88

3,989.29
253.71

4,243.00

4,243.00
149.46
4,392.47

Year 7
1,000.00
37,617.17

Year 8
1,000.00
37,617.17

Year 9
1,000.00
37,617.17

Year 10
1,000.00
43,886.70

38,617.17

38,617.17

38,617.17

44,886.70

No

No
-

No
-

No
-

38,617.17

38,617.17

38,617.17

44,886.70

31,160.01
3,761.72

31,160.02
3,761.72

31,160.02
3,761.72

35,611.46
3,761.72

630.00
1,750.00

472.50
1,750.00

315.00
1,750.00

157.50
1,750.00

37,301.73

37,144.24

36,986.74

41,280.67

1,315.44

1,472.93

1,630.43

3,606.03

1,000.00

1,000.00

1,000.00

1,000.00

1,000.00

1,000.00

1,000.00

1,000.00

315.44

472.93

630.43

2,606.03

4,233.04
315.44
3,917.59

3,917.59
472.93
3,444.66

3,444.66
630.43
2,814.23

2,814.23
2,606.03
208.21

(All values are in Rs. Lacs)


I

II

III

Income Statement (2016-2026)

Year 1

Year 2

Revenue
Expenses
Cost of Materials Sold
Other Expenses

37,617.17

37,617.17

31,160.03
3,761.72

31,160.03
3,761.72

EBTIDA

2,695.43

2,695.43

Depreciation

943.75

943.75

EBIT

Interest Expense

EBT

Tax

Net Income

Balance Sheet (2016-2026)

1,751.68

1,751.68

1,575.00

1,417.50

176.68

334.18

53.00

100.25

123.68

Year 1

233.93

Year 2

Current Assets
Cash
Accounts Receivable
Inventories

22,090.70
1,000.00
6,269.53
14,821.17

22,090.70
1,000.00
6,269.53
14,821.17

Non-Current Assets
Fixed Assets

24,856.25

23,912.50

Total Assets

Current Liabilities
Accounts Payable
Bank Overdraft

46,003.20

3,895.00
4,004.10

4,381.88
3,989.29

Non-Current Liabilities
Long-Term Debt

15,750.00

14,000.00

Shareholder's Equity

23,297.85

23,632.03

Total Liabilities

Fund Requirement
Fixed Assets
Working Cap (Net)
Total:

46,946.95

46,946.95

Year 1

24,856.25
18,195.70
43,051.95

46,003.20

Year 2
23,912.50
17,708.82
41,621.32

IV

Sourcing of Funds
Equity
Long term loan
CC Loan
Total:

IV

Year 1

Sourcing of Funds
MPBF

23,297.85
15,750.00
4,004.10
43,051.95
Year 1

13,646.77

Year 2
23,632.03
14,000.00
3,989.29
41,621.32
Year 2
13,281.62

Year 3

Year 4

Year 5

Year 6

Year 7

37,617.17

37,617.17

37,617.17

37,617.17

37,617.17

31,160.03
3,761.72

31,160.03
3,761.72

31,160.03
3,761.72

31,160.03
3,761.72

31,160.03
3,761.72

2,695.43

2,695.43

2,695.43

2,695.43

2,695.43

943.75

943.75

943.75
1,751.68

1,260.00
491.68

147.50
344.18

Year 3
22,090.70
1,000.00
6,269.53
14,821.17

22,968.75
45,059.45

943.75
1,751.68

1,102.50
649.18

194.75
454.43

Year 4

22,090.70
1,000.00
6,269.53
14,821.17

943.75
1,751.68

945.00
806.68

242.00
564.68

Year 5

22,025.00
44,115.70

22,090.70
1,000.00
6,269.53
14,821.17

1,751.68

787.50

630.00

964.18

1,121.68

289.25

336.50

674.93

Year 6

21,081.25
43,171.95

1,751.68

22,090.70
1,000.00
6,269.53
14,821.17

785.18

Year 7

22,090.70
1,000.00
6,269.53
14,821.17

20,137.50

19,193.75

42,228.20

41,284.45

4,442.74
4,243.00

4,450.35
4,392.47

4,451.30
4,391.09

4,451.42
4,233.04

4,451.43
3,917.59

12,250.00

10,500.00

8,750.00

7,000.00

5,250.00

24,123.71

24,772.89

25,579.57

26,543.75

27,665.43

45,059.45

Year 3

22,968.75
17,647.96
40,616.71

44,115.70

Year 4
22,025.00
17,640.35
39,665.35

43,171.95

Year 5
21,081.25
17,639.40
38,720.65

42,228.20

Year 6
20,137.50
17,639.28
37,776.78

41,284.45

Year 7
19,193.75
17,639.27
36,833.02

Year 3

24,123.71
12,250.00
4,243.00
40,616.71
Year 3

13,235.97

Year 4
24,772.89
10,500.00
4,392.47
39,665.35
Year 4
13,230.26

Year 5
25,579.57
8,750.00
4,391.09
38,720.65
Year 5
13,229.55

Year 6
26,543.75
7,000.00
4,233.04
37,776.78
Year 6
13,229.46

Year 7
27,665.43
5,250.00
3,917.59
36,833.02
Year 7
13,229.45

Year 8

Year 9

Year 10

37,617.17

37,617.17

37,617.17

31,160.03
3,761.72

31,160.03
3,761.72

31,160.03
3,761.72

2,695.43

2,695.43

2,695.43

943.75

943.75

943.75
1,751.68

472.50
1,279.18

383.75
895.43

Year 8
22,090.70
1,000.00
6,269.53
14,821.17

18,250.00
40,340.70

1,751.68

315.00

157.50

1,436.68

1,594.18

431.00

478.25

1,005.68

Year 9

1,751.68

22,090.70
1,000.00
6,269.53
14,821.17

Year 10

15,821.17
1,000.00
14,821.17

17,306.25

16,362.50

39,396.95

32,183.67

208.21

4,451.43
3,444.66

4,451.43
2,814.23

3,500.00

1,750.00

28,944.60

30,381.28

40,340.70

Year 8

18,250.00
17,639.27
35,889.27

1,115.93

39,396.95

Year 9
17,306.25
17,639.27
34,945.52

31,975.46
32,183.67

Year 10
16,362.50
15,821.17
32,183.67

Year 8

28,944.60
3,500.00
3,444.66
35,889.27
Year 8

13,229.45

Year 9
30,381.28
1,750.00
2,814.23
34,945.52
Year 9
13,229.45

Year 10
31,975.46
208.21
32,183.67
Year 10
11,865.88

(All values are in Rs. Lacs)


Estimation of Cost Price
Deal Size
No. of Units

600,000.00
200

SP per Unit
Margin

3,000.00
12.50%

CP per Unit

2,700.00

Helicopter - Product Cost Estimation

Engine - Kit
Engine - Assembling Charge
Engine - Bought-Out
Rotor - Kit
Rotor - Assembling Charge
Rotor - Bought-Out
Fuselage - Domestic
Fuselage - Imported
Cabin - Domestic
Cabin - Imported
Avionics Suite
Other Accessories - Domestic
Spares

60.00%
20.00%
100.00%
60.00%
20.00%
100.00%
75.00%
100.00%
75.00%
100.00%
100.00%
100.00%
100.00%

25.00%

20.00%
15.00%
10.00%
15.00%
5.00%
10.00%

$
$
$
$
$
$
$
$
$
$
$
$
$

405.00
135.00
675.00
324.00
108.00
540.00
303.75
405.00
202.50
270.00
405.00
135.00
270.00

Imported
Type 1

Semi-indigenous Fully-Indigenous
Type 2
Type 3
$
405.00 $
405.00
$
135.00 $
135.00

675.00
$
$

324.00
108.00

540.00 $

540.00
$

303.75

405.00 $
$
270.00
405.00 $
135.00 $
270.00 $

405.00
202.50

202.50

405.00
135.00
270.00

$
$
$

405.00
135.00
270.00

2,497.50

2,288.25

$
$
$
$

2,700.00

Company Name
Aerospace and Defense
Northrop Grumman Corporation
ITT Corporation
Lockheed Martin Corporation
Spirit AeroSystems Holdings Inc
Moog Inc.
BE Aerospace Inc.
Average

Industry

Aerospace
Aerospace
Aerospace
Aerospace
Aerospace
Aerospace

and
and
and
and
and
and

Defense
Defense
Defense
Defense
Defense
Defense

Days Sales Outstanding


2009
2008
37
58
49
14
106
42

42
59
45
13
97
47

51

51

52

es Outstanding
2007

Days Inventory Outstanding


2009
2008
2007

Days Payables Outstanding


2009
2008
2007

46
73
43
15
100
47

13
27
18
198
96
235

11
25
16
182
78
207

12
36
15
127
84
138

21
43
16
39
25
27

21
39
17
31
25
47

23
53
19
34
27
42

54

98

87

69

29

30

33

84

31

Days Working Capital


2009
2008
2007
29
42
50
172
177
250

32
46
44
164
151
207

35
57
39
107
158
144

120

107

90

106

Esclation Value
Debt / Equity Schedule
Annual Service Contract as a percentage of
AMC Schedule
Finished Goods (25 days worth of goods)
carry 25 days of sales
FG
WIP
RM

5 5 helicpter in inventory (assuming 3 months sche


5 assuming 3 months (take 50% of total
keep 1 month in stock
consume remaining
Sir: Receivables on completion

Working Capital
Day 0

Buy Days
Processsing
FG
Payment Terms
Receivable Terms

RM Days Required
WIP
FG
Customer Outstanding
Other CA
Payables

cost of prd * 48 will be b


10 worth days blocked i
1 month blocked
% of Rve
60 days

NWC as % of Revenue

RM + WIP + FG + Cust Outt - AP = No. of Days


as percentage of Sales

uming 3 months schedule)


1.66666667
5

st of prd * 48 will be blocked


0 worth days blocked in WIP

month blocked

- AP = No. of Days