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 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 2,658,707 2,674,263 2,631,928
Depreciation = (Cost - Salvage Value)/Life
Interest Expense
Profit Before Tax
Income Taxes
Profit After Tax

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 BOP - Debt
Fixed Assets, Gross (PPE, Gross) Int Expense
Acc Depreciation EAI
Fixed Asset, Net (PPE, Net) EOP - Debt
Total Assets
Principle Repaid
Liabilities
Debt
Equity
Retained Profit (Earning)
Total Liabilities
Checksum - - - - -

Cash Flow Statement

Year - 0 Year - 1 Year - 2 Year - 3 Year - 4 - 0.00
Y-0 Y-1
Net Income (PAT) Assets 100 200 Use of FUNDS/CASH
Depreciation Change in Asset -100 Ao - A1
Cash Flow From Operations (100.00) Old - New
Change in Fixed Asset, Gross (Capex) -100
Cash Flow from Investing
Change in Debt Y-0 Y-1
Change in Equity Lia 100 200 SOURCE OF FUNDS
Cash Flow from Financing Change in Lia 100 L1 - Lo
Net change in Cash 100.00 New - Old
Cash - BOP
Cash - EOP
Checksum

Free Cash Flow - Equity

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

Net Income IRR Sensitivity

Depreciation Financing Debt (%) - For Neutral Case
Capex (change in fixed asset, gross) 10% 25% 40% 55% 75%
Interest Rate (%)

Change in Debt 8%
Cash Flow to Equity = FCFE 9%
10%
11%
Returns Analysis - Equity 12%
Year - 0 Year - 1 Year - 2 Year - 3 Year - 4 13%

FCFE

Cost of Equity IRR Sensitivity

NPV Fuel Efficiency
IRR 3 3.5 4 4.5 5
40%
45%