Debt is to be

Assumptions - Bus Assumptions - Financing repaid in 4 Assumptions - General

equal annual
installments
Cost of Bus 7,500,000 Debt 75% Taxthe
at Rate
end of 33%
Maintenance / year 10% Equity 25% every year
Escalation Rate - M 15% Y/Y Interest on Debt 10% Interest Income 5%
Life of Bus (years) 4 Tenure of loan (years) 4 Diesel rate (Rs./Lit) 95
Deprecation Rate 25% SLM Cost of Equity 15% Diesel Price escalation 15%
Inflation 10%
Assumptions - Operating Revenues Assumptions - Operating Costs Assumptions - Operating General

Seating Capacity 35 Fuel Efficiency ( Km / L ) 3.5 Route Mumbai - Pune

Load Factor - Occup 50% Driver Cost (Rs./ Trip) 500 Distance (Kms) 155
Tariff (Rs./Ticket) 500.00 Miscellaneous (Rs. / Trip) 750 Estimated Time Hours/Trip 3
Escalation Rate - Tar 10% <== YEAR-2 ON Toll Amount (Rs. / Trip) 1000 Trips / Day 4
Days of Operation/Y 365 TRIP - ONE SIDED JOURNEY
Income Statement
Year - 0 Year - 1 Year - 2 Year - 3 Year - 4
Flag 0 1 2 3 4
Revenue 12,775,000 14,052,500 15,457,750 17,003,525 Escalation Rate - Tariff
Other Income - 38,511 78,361 117,867 All inflation/escalation happens from year 2
Fuel Costs 6,142,429 7,063,793 8,123,362 9,341,866 Diesel Price escalation
Maintenance Expenses 750,000 862,500 991,875 1,140,656 Increases at Maintenance escalation rate
Driver Costs 730,000 803,000 883,300 971,630 Increase at inflation rate
Miscellaneous Costs 1,095,000 1,204,500 1,324,950 1,457,445 Increase at inflation rate
Toll Amount 1,460,000 1,460,000 1,460,000 1,460,000 Toll amount remains constant
Cost of Revenues 10,177,429 11,393,793 12,783,487 14,371,597
Gross Pofit / (EBITDA) 2,597,571 2,697,218 2,752,624 2,749,794
Depreciation 1,875,000 1,875,000 1,875,000 1,875,000 = (Cost - Salvage Value)/Life
Interest Expense 562,500 441,298 307,975 161,320
Profit Before Tax 160,071 380,921 569,649 713,474
Income Taxes 52,824 125,704 187,984 235,446
Profit After Tax 107,248 255,217 381,665 478,028

Balance Sheet EAI = EQUAL ANNUAL INSTALLMENT

Year - 0 Year - 1 Year - 2 Year - 3 Year - 4 Debt Schedule
Assets Year - 0 Year - 1 Year - 2 Year - 3 Year - 4
Cash - 770,225 1,567,216 2,357,332 3,097,157 BOP - Debt 5,625,000 4,412,977 3,079,751 1,613,203
Fixed Assets, Gro 7,500,000 7,500,000 7,500,000 7,500,000 7,500,000 Int Expense 562,500 441,298 307,975 161,320 <== IS
Acc Depreciat - 1,875,000 3,750,000 5,625,000 7,500,000 EAI (1,774,523) (1,774,523) (1,774,523) (1,774,523)
Fixed Asset, Net 7,500,000 5,625,000 3,750,000 1,875,000 - EOP - Debt 5,625,000 4,412,977 3,079,751 1,613,203 - <== BS
Total Assets 7,500,000 6,395,225 5,317,216 4,232,332 3,097,157
Principle Repaid 1,212,023 1,333,226 1,466,548 1,613,203 <== CFS
Liabilities
Debt 5,625,000 4,412,977 3,079,751 1,613,203 -
Equity 1,875,000 1,875,000 1,875,000 1,875,000 1,875,000
Retained Profit ( - 107,248 362,465 744,129 1,222,157
Total Liabilities 7,500,000 6,395,225 5,317,216 4,232,332 3,097,157
Checksum - - - - -

Cash Flow Statement

Year - 0 Year - 1 Year - 2 Year - 3 Year - 4 - 0.00
Y-0 Y-1
Net Income (PAT - 107,248 255,217 381,665 478,028 Assets 100 200 Use of FUNDS/CASH
Depreciation - 1,875,000 1,875,000 1,875,000 1,875,000 Change in Asset -100 Ao - A1
Cash Flow From Ope - 1,982,248 2,130,217 2,256,665 2,353,028 (100.00) Old - New
Change in Fixed (7,500,000) - - - - -100
Cash Flow from Inve (7,500,000) - - - -
Change in Debt 5,625,000 (1,212,023) (1,333,226) (1,466,548) (1,613,203) Y-0 Y-1
Change in Equity 1,875,000 - - - - Lia 100 200 SOURCE OF FUNDS
Cash Flow from Fina 7,500,000 (1,212,023) (1,333,226) (1,466,548) (1,613,203) Change in Lia 100 L1 - Lo
Net change in Cash - 770,225 796,991 790,117 739,825 100.00 New - Old
Cash - BOP - - 770,225 1,567,216 2,357,332
Cash - EOP - 770,225 1,567,216 2,357,332 3,097,157
Checksum

Free Cash Flow - Equity

Year - 0 Year - 1 Year - 2 Year - 3 Year - 4

Net Income - 107,248 255,217 381,665 478,028 IRR Sensitivity

Depreciation - 1,875,000 1,875,000 1,875,000 1,875,000 Financing Debt (%) - For Neutral Case
Capex (change in (7,500,000) - - - - 24% 10% 25% 40% 55% 75%
Interest Rate (%)

Change in Debt 5,625,000 (1,212,023) (1,333,226) (1,466,548) (1,613,203) 8%

Cash Flow to Equity (1,875,000) 770,225 796,991 790,117 739,825 9%
10%
11%
Returns Analysis - Equity 12%
Year - 0 Year - 1 Year - 2 Year - 3 Year - 4 13%

FCFE (1,875,000) 770,225 796,991 790,117 739,825

Cost of Equity 15.0% IRR Sensitivity

NPV 339,912 NPV > 0, ACCEPT THE PROJECT Fuel Efficiency
IRR 23.76% IRR > COST OF EQUITY , ACCEPT THE PROJECT 23.76% 3 3.5 4 4.5 5
40% #NUM! #NUM! #NUM!
45% #NUM! #NUM!