MODEL SCHEME

tax schedule

IS

CFS FCFE
DEVELOPMENT
BS
SCHEDULE
IRR > CoC NPV/DCF
DEBT DECISION
SCHEDULE MAKING
Financial Model
(Assumptions in Red, Calculations in Black)
COD
Development Phase Project Life 4 Years
Years 0 1 2 3 4 5
COD
Development Stage

Total Project Cost for Period = HC + 673,491 1,399,236 834,306

Fixed Assets, Gross 673,491 2,072,728 2,907,034 2,907,034 2,907,034
Hard Cost ### 625,000 1,250,000 625,000
Phasing 25% 50% 25%

Funding Mix
Equity A 40% 269,397 559,695 333,723
Debt ADD 60% 404,095 839,542 500,584

Equity Capital 269,397 829,091 1,162,814 1,162,814 1,162,814

Capitalised Interest
Capitalise 12% 48,491 149,236 209,306

Debt Schedule EQUAL REPAYMENT IN 3 YEARS

Opening Debt - 404,095 1,243,637 1,744,221 1,744,221
Additions / Repayment 404,095 839,542 500,584 - (581,407)
Closing Debt 404,095 1,243,637 1,744,221 1,744,221 1,162,814

D/E
Assumptions
Current CasBase
Initial Sale ### <==YEAR-4 100,000 115,000
Initial Sale 125 <==YEAR-4 125 150
Initial Cost 75 <==YEAR-4 75 90
Growth in 15% 15%
Growth in S20% 20%
Growth in C20% 20%

Income Statement

Sales 12,500,000 17,250,000

Cost of Goods Sold 7,500,000 10,350,000
Selling & 25% 3,125,000 4,312,500
EBITDA 1,875,000 2,587,500
Depreciation 726,759 726,759
EBIT 1,148,241 1,860,741
Interest, Net 209,306 197,911
EBT 938,935 1,662,830
Tax 30% 281,680 498,849
PAT OR NI 657,254 1,163,981

Balance Sheet

Liabilities
Debt 404,095 1,243,637 1,744,221 1,744,221 1,162,814
DTL - - - 93,893 260,177
Equity Capital 269,397 829,091 1,162,814 1,162,814 1,162,814
Retained Earnings - - - 657,254 1,821,236
Total Liabilities 673,491 2,072,728 2,907,034 3,658,182 4,407,040

Assets
Fixed Assets, Gross 673,491 2,072,728 2,907,034 2,907,034 2,907,034
Accumulat 4 - - - 726,759 1,453,517
Net Fixed Assets 673,491 2,072,728 2,907,034 2,180,276 1,453,517
Cash - - - 227,907 1,228,522
Working10% - - - 1,250,000 1,725,000
Total Assets 673,491 2,072,728 2,907,034 3,658,182 4,407,040
Checksum - - - - -

Cash Flow Statement

Net Income - - - 657,254 1,163,981

Depreciation - - - 726,759 726,759

Change in W/C (net current asset) - - - (1,250,000) (475,000)
CHANGE IN DTL - - 93,893 166,283
Net OCF - - - 227,907 1,582,023

Capex (Change in Fixed Assets, Gros (673,491) (1,399,236) (834,306) - -

Net ICF (673,491) (1,399,236) (834,306) - -

CHANGE IN DEBT 404,095 839,542 500,584 - (581,407)

CHANGE IN EQUITY CAPITAL 269,397 559,695 333,723 - -
Net FCF 673,491 1,399,236 834,306 - (581,407)

Net Change in Cash - - - 227,907 1,000,616

BOP Cash - - - - 227,907

EOP Cash - - - 227,907 1,228,522

Interest, Net
Interest Ex 12% 209,306.47 209,306.47
Interest In 5% - 11,395
Interest, Net 209,306 197,911

Computation of Free Cash Flow

FCFE = CFO + CFI + CHANGE IN DEBT (269,397) (559,695) (333,723) 227,907 1,000,616

Returns Analysis
IRR Sensitivity with Initial Sales Price and Growth in Sales Volu
Net Present15% 1,099,383 41.03% 115 120 125
Internal Rate of 41.03% <== 10.0%
39.32% 12.5%
as npv>0, irr > 15% 15.0%
accept the project 17.5%
20.0%

DEPRECIATION SCHEDULE (WDV)

OP ASSET 2,907,034 1,162,814
DEPRECIATION (I 60% 1,744,221 697,688
CLOSING ASSET 2,907,034 1,162,814 465,125

TAX SCHEDULE

PBT <== CA 938,935 1,662,830

Dep-SLM 726,759 726,759
DEP-IT (Accelerated) (1,744,221) (697,688)
Taxable Income (78,527) 1,691,901

CARRY FORWARD TAX LOSS SCHEDULE

BOP CFL - (78,527)

ADDITIONS - CFL (78,527) -
SETOFF - CFL - 78,527
EOP CFL (78,527) -

GROSS TAXABLE INCOME - 1,613,374

CORPORATE TAX 30% - 484,012

PBT 938,935 1,662,830

TAX EXPENSE 30% 281,680 498,849
MIN ALT TAX
MAT 20% 187,787 332,566

TAX PAYABLE 187,787 484,012

MAT CREDIT SET-OFF

BOP-MAT CREDITS - 187,787

ADDITION-CREDITS 187,787 -
SET-OFF CREDITS - 151,446
EOP CREDITS 187,787 36,341

NET TAX PAYABLE 187,787 332,566

CHANGE IN DTL (ITE - ITP) 93,893 166,283

DTL 93,893 260,177

4,694.67 264,871.20
98,588.17 13,243.56
98,588.17 278,114.76
 Project Life 4 Years
6 7

2,907,034 2,907,034

1,162,814 1,162,814

AL REPAYMENT IN 3 YEARS
1,162,814 581,407
(581,407) (581,407)
581,407 (0)

132,250 152,088
180 216
108 130
15% 15%
20% 20%
20% 20%

23,805,000 32,850,900
14,283,000 19,710,540
5,951,250 8,212,725
3,570,750 4,927,635
726,759 726,759
2,843,991 4,200,876
78,112 (58,057)
2,765,880 4,258,934
829,764 1,277,680
1,936,116 2,981,254

581,407 (0)
162,213 -
1,162,814 1,162,814
3,757,352 6,738,605
5,663,785 7,901,419

2,907,034 2,907,034
2,180,276 2,907,034
726,759 -
2,556,526 4,616,329
2,380,500 3,285,090
5,663,785 7,901,419
- -

1,936,116 2,981,254

726,759 726,759
(655,500) (904,590)
(97,964) (162,213)
1,909,410 2,641,210

- -
- -

(581,407) (581,407)
- -
(581,407) (581,407)

1,328,004 2,059,803

1,228,522 2,556,526
2,556,526 4,616,329
 139,537.64 69,768.82
61,426 127,826
78,112 (58,057)

1,328,004 2,059,803

e and Growth in Sales Volume

130 135

465,125 186,050
279,075 186,050
186,050 -

2,765,880 4,258,934
726,759 726,759
(279,075) (186,050)
3,213,563 4,799,642

- -
- -
- -
- -

3,213,563 4,799,642
964,069 1,439,893 2,887,974

2,765,880 4,258,934
829,764 1,277,680 2,887,974
 553,176 851,787

964,069 1,439,893 3,075,761

36,341 -
- -
36,341 -
- -

927,728 1,439,893 2,887,974

(97,964) (162,213)
162,213 -

180,150.75 26,945.77 <==

9,007.54
189,158.28
circ ref
cell connects to itself
 PROJECTS
DEVELOPMENT PHASE

TECHNICAL TEAM
LAND
CONST.
EQUIP
MISC

HARD COST + SOFT COST = TOTAL PROJECT COST

LEVEL-1 ==> OUTPUT ==> TPC

3 YEARS TO BUILD, TOTAL HARD COST = 300, D/E =1, INT = 10%

YEARS 1 2 3 BALANCE SHEET T=0

1/3 1/3 1/3
% PHASING 33% 33% 33% DEBT 50 CASH
HC 100 100 100 300 EQUITY 50
SC ?? 12 18 30
TPC TOTAL PROJECT COST ===> 330 TOTAL LIA 100 TOTAL ASST
CHECK
SOFT COST = CAPITALISED INTEREST = INTEREST DURING CONSTRUCTION (IDC)
BALANCE SHEET T=1
=10%*50=5
D/E = 1.1 DEBT 55 CASH
INT 5 EQUITY 50 FA
TAX BE 1.5 SOFT COST
TOTAL LIA 105 TOTAL ASST
DEP 5 REPAYMEN 5 CHECK

BALANCE SHEET T=2

=10%*50=5
DEBT 117 CASH
EQUITY 100 FA
SOFT COST
TOTAL LIA 217 TOTAL ASST
CHECK
 FINANCIAL TEAM
HOW WILL YOU FUND
COSTS FOR FUNDING

= TOTAL PROJECT COST

100

100
0

0
100
5 <== MATCHING ENTRY
105 <== DEPRECIATING (TPC)
0

0
200
17
217
0
CIRCULAR REF ERROR

CELL CONNECTS TO ITSELF

TPC = HC + SC

DEBT INT = SC

ITERATIONS REPEAT
ITER-1 ITER-2 ITER-3 ITER-4 ITER-5 ITER-6 ITER-7 ITER-8
HC 100 100 100 100 100 100 100 100
SC = INT 5 5.25 5.2625 5.263125 5.2631563 5.2631578125 5.2631579
TPC 100 105 105.25 105.2625 105.26313 105.26316 105.26315781 105.26316

DEBT 50 52.5 52.625 52.63125 52.631563 52.631578 52.631578906 52.631579

INT = SC 5 5.25 5.2625 5.263125 5.2631563 5.2631578 5.2631578906 5.2631579

ERROR 5.00 0.25 0.01 0.00 0.00 0.00 0.00000008 0.00

- 0.00 -
0.00

- 0.00
ITER-9 ITER-10 ITER-11 ITER-12 ITER-13 ITER-14
100 100 100 100 100 100
5.2631579 5.2631579 5.2631579 5.26315789 5.2631578947368400000 5.2631579
105.26316 105.26316 105.26316 105.263158 105.263157895 105.26316
proj cost est.
52.631579 52.631579 52.631579 52.6315789 52.6315789473684 52.631579

5.2631579 5.2631579 5.2631579 5.26315789 5.26315789473684 5.2631579

0.00 0.00 0.00 0.00 - -