INVESTMENT DOCUMENT AND BUSINESS PLAN

OF
SHAKERS APPLIANCES PRIVATE LIMITED
REGD. OFFICE: AC-141, SHAKERS MANSION, PRAFULA KANAN, KRISHNAPUR, KOLKATA - 700101

________________________________________________________________________________________________

Prepared By: Basu & Basu, Chartered Accountants

Head Office:
10/1/N, Swinhoe Street,
Ballygunge,Ground Floor,Kolkata- 700 019.
Tel: +91 33 2460 2511 Email: info@basuandbasu.in Web: www.basuandbasu.in

Branch Offices:
Mumbai:
1/C/1, 1st floor, Jai Matadi Industrial Complex, Sion Trombay Road, Mumbai - 400 071.
Tel: + 91 98754 02271 | Email: mumbai@basuandbasu.in

New Delhi:
B-1330, 2nd Floor, G D Colony, Mayur Vihar, Phase-III,New Delhi - 110 096.
Tel: + 91 11 4166 8009 | Email: newdelhi@basuandbasu.in

This document is the property of Basu & Basu, Chartered Accountants and Shakers Appliances
Private Limited and is a confidential document. The Contents of this document shall not be
copied, photocopied, extracted or circulated by anyone except the company, its intended
recipients and others directly related to this project without our prior permission.
Shakers Appliances Private Limited Investment Document and Business Plan

Table of Contents
Chapter
Subject Page No.
Sl. No.
-- Executive Summary 3
1 Introduction and background of the company and promoters 5
1.1 Introduction 5
1.2 Promoters Details 6
2 Operational and Financial performance in the past 8
2.1 Operational Performance 8
2.2 Past Financials 8
3 Reasons for downturn in performance of the company 11
4 Business Plan 12
5 Product and Services 12
6 Market demand and distribution channels 14
6.1 Market Demand 14
6.2 Vision, Value & Core Strategy 15
6.3 Distribution Channel of the Product of the company 15
6.4 Distribution Channel of the Services of the company 16
6.5 The internet as a distribution Channel 16
7 SWOT Analysis of the Project 17
8 Details of the Business Plan 18
8.1 Key Operational Assumptions 18
8.2 Financing Assumptions 19
8.3 Outstanding Payables 19
8.4 Projected Product Mix and Volume 19
8.5 Projected Pricing 20
8.6 Other Assumptions 21
8.7 Bank Loan Repayment Schedule 22
9 Assessment of Economic Viability 24
9.1 Project Financials & Returns 24
9.2 Project Returns 24
9.3 Project Risks 24
9.4 Project Sensitivity 24
9.5 Sensitivity Analysis 25
9.6 Break Even Point 25
10 Financial & Returns 26
10.1 Projected Statement of Profit & Loss for 8 years 26
10.2 Projected balance Sheet for 8 years 28
10.3 Projected Cash Flows for 8 years 29
10.4 Financial Ratios on Projected Financials 30
11 Conclusion 31
12 CMA Data for 8 years 32

2|Page Basu & Basu

Shakers Appliances Private Limited Investment Document and Business Plan

Executive Summary
Name of the Company Shakers Appliances Private Limited
Date of Incorporation 23/12/1999

Constitution Private Limited Company

Company CIN U51109WB1999PTC090809
Marketing and selling of Kitchen Chimney, Water Heater, Water Purifier,
Nature of activity various kitchen accessories and Modular Kitchen under the registered
brand “Shakers”.

Registered Office AC-141, Shakers Mansion, Prafula Kanan, Krishnapur, Kolkata – 700101.

Mr. Debasish Ghosh (DIN- 02336395)

Name of Directors Mrs. Sandhya Ghosh (DIN- 02339385)
Mrs. Mala Singh (DIN- 03248561)
M/s Shakers Appliances Private Limited (hereinafter referred to as
“Shakers”) is an unlisted private company incorporated on 23 December,
Brief details of the 1999. It is classified as a private limited company and is located in Kolkata,
Company West Bengal and engaged into the business of marketing and selling of
Kitchen Chimney, Water Heater, Water Purifier, various kitchen accessories
and Modular Kitchen under the registered brand “Shakers”.

Name of the Shareholder Nos. % Holding

Shareholding Pattern Debashish Ghosh 3,34,950 60.90%
(Existing) Sandhya Ghosh 2,15,050 39.10%
TOTAL 5,50,000 100.00%

To infuse the required working capital by issuing Optionally Convertible

Debentures after assessing the working capital gap and one time
outstanding payables. It has also been considered that the company will
Proposed Investment approach its banker Axis Bank Limited for restructuring its existing debt. The
and Business Plan strategic capital infusion, by way of bringing in strategic investors, would
be made with the strategy of revamping its marketing network and
distribution channel as well as rationalizing the pricing and margin of each
product.
Rs. 500 lacs in the form of Optionally Convertible Debentures with assured
Funding Proposal
cumulative return of 16 % p.a. in next five years

3|Page Basu & Basu

Shakers Appliances Private Limited Investment Document and Business Plan

Present Bankers Axis Bank Limited

Present Credit Limit Rs. 2,00,00,000 (Cash Credit)

Type of
Description of Security with value
Security
Primary
Present and future Current Assets
Security
Security mortgaged 1. EM of immovable property situated at AG-167,
with the bank Collateral Talbagan, Krishnapur, Kolkata (Approx. value Rs. 115.00 Lacs)
Security 2. EM of Immovable property (Flat) situated at AC-141,
Krishnapur, Kolkata (Approx. value Rs. 210.00 Lacs
Personal Personal Guarantee of all the three Directors with
Guarantee aggregate Net Worth of Rs. 185.80 Lacs

4|Page Basu & Basu

Shakers Appliances Private Limited Investment Document and Business Plan

Chapter 1
Introduction and background of the company and promoters

1.1 Introduction

M/s Shakers Appliances Private Limited (hereinafter referred to as “Shakers”)

is an unlisted private company incorporated on 23 December, 1999. It is
classified as a private limited company and is located in Kolkata, West Bengal. The
Corporate Identification Number (CIN) of Shakers Appliances Private Limited is
U51109WB1999PTC090809. The registered office of Shakers Appliances Private Limited is at
AC-141, Shakers Mansion, Prafulla Kanan, Krishnapur, and Kolkata.

Shakers Appliances Private Limited, an ISO 9001 2008 and ISO 14001 2004 certified company
came into existence in the year 1998 with the vision to be harbinger of care, commitment
and concern addressing the modern day lifestyle of people with its unique and innovative
range of products that include Kitchen Chimney, Water Heater, Water Purifier, Built-in
Hobs, Gas Cook Tops, and numerous other kitchen accessories.

Shakers has been the pioneering company to introduce auto clean chimney with gas
sensor technology. Shakers Chimney is the perfect partner of a modular kitchen because it
has many exclusive and innovative features like baffle filters complimented with oil-
collectors, chimneys with cassette filters complimented with oil-collectors, built-in chimney-
hob-with dish dis-infectioner, which can make kitchen smokeless and odorless.

As a premier Kitchen Innovations Company Shakers always aspires to follow best business
practices and processes to design products meeting the expectations of customers,
colleagues, business partners and regulators alike. Through an integrated network of dealers
and distributors and a direct marketing approach Shakers has become a leading name in
Eastern India along with Northern, Western and Central India.

Shakers completely understand the importance of marketing service-centric products and

are committed to providing the best of after sales service to all our customers. Shakers’
“Express Service” initiative started in 2009 has already achieved huge success in West Bengal,

5|Page Basu & Basu

Shakers Appliances Private Limited Investment Document and Business Plan

Assam, Orissa, Bihar, Jharkhand, J&K and Chhattisgarh wherein every complaint is addressed
within 24 working hours of complaint registration and with modern thoughts Shakers is sure to
extend this service to end customers in any corner of the country.

All the Promoters and Directors hail from well-known business families and are fully equipped
with the knowledge of Kitchen Appliances business early 1990s and has also gained
considerable knowledge and expertise in this business segment due to their association in
the business with similar kind of activities.

The business of Shakers has always been customer centric since its inception. Its USP lies in
empathizing with the needs of the customers and serving the same through a wide range of
uncommon customized solutions. When it comes to customer service, it has become
synonymous with range of quality and reliability.

Since, the promoters are actively involved in the business and are established well in their
existing segment for a considerable period, no problem is envisaged in marketing the
services and products in the business plan.

After reviewing the various probable options including economic viability and
implementation schedule, it may be concluded that the above plan would be best suited
for the future business plan of the company.

1.2 Promoters Details

The details of the promoters are as below:

1. Sri Debasish Ghosh Director

i Name Debasish Ghosh

ii Father’s Name Late Sukanta Kumar Ghosh
iii Age 51 Yrs +

iv Residential Address (Permanent) EE 74/3C Sector III Salt Lake City, Kolkata 700091
v Educational Qualification Graduate -BSc ( H) { Hons in Economics}
vi KYC Compliance Aadhar No 979880347279

6|Page Basu & Basu

Shakers Appliances Private Limited Investment Document and Business Plan

vii Net Worth (As on 31.03.2021) Rs.74,25,000/- (approx)

viii Designation DIRECTOR
ix PAN No. ADUPG1750G
x DIN 02336395
xi Experience Business for last 24 years

2. Smt. Sandhya Ghosh Director

i Name Sandhya Ghosh

ii Father’s Name Late Bankim Bihari Ghosh

iii Age 68 Yrs+

iv Residential Address (Permanent) EE 74/3C Sector III Salt Lake City, Kolkata 700091

v Educational Qualification Madhyamik

vi KYC Compliance Aadhar No 563657114672
vii Net Worth (As on 31.03.2021) Rs.61,15,000/- (approx)
viii Designation DIRECTOR
ix PAN No. ADUPG1749H
x DIN 02339385

xi Experience Business for last 18 years

3. Smt. Mala Singh Director

i Name Mala Singh

ii Father’s Name S N Singh
iii Age 42
Nirmal Sengupta Sarani (By Lane), Nabapally,
iv Residential Address (Permanent)
Kol- 79

v Educational Qualification B.A.

vi KYC Compliance Aadhar No 994840383804

vii Net Worth (As on 31.03.2021) Rs.50,40,000/- (approx)

viii Designation DIRECTOR

ix PAN No. BFWPS4947E
x DIN 03248561

xi Experience Business for last 16 years

7|Page Basu & Basu

Shakers Appliances Private Limited Investment Document and Business Plan

Chapter 2
Operational and Financial performance in the past

2. 1 Operational Performance:

Shakers came into existence in the year 1998 with the vision to be harbinger of care, commitment
and concern addressing the modern day lifestyle of people with its unique and innovative range of
products that include Kitchen Chimney, Water Heater, Water Purifier, Built-in Hobs, Gas Cook Tops
and numerous other kitchen accessories.

Shakers’ consumer base includes people who like to get work done fast and in a safe and secure
way. Convenience is guaranteed because Shakers products assure a hazard-free and hassle-free
experience. Shakers add a novel, revolutionary dimension to modern day kitchen. So make the
kitchen look and feel better with Shakers!

As a premier Kitchen Innovations Company, Shakers always aspires to follow best business practices
and processes to design products meeting the expectations of customers, colleagues, business
partners and regulators alike. Through an integrated network of DEALERS and distributors and a direct
marketing approach Shakers has become a leading name in Eastern India along with Northern,
Western and Central India.

Shakers understand the importance of marketing service-centric products and are committed to
providing the best of after sales service to all its customers. Shakers’ “Express Service” initiative started
in 2009 had achieved huge success in West Bengal, Assam, Tripura, Orissa, Bihar, Jharkhand, J&K and
Chhattisgarh wherein every complaint was addressed within 72 hours of complaint registration.

2. 2 Past Financials: Total revenue earned, operating profit along with key financial highlights of the
past 5 years are summarized below:

Statement of Profit & Loss (Rs. in Lacs)

Particulars FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21

Revenue from operation 996.39 1,010.80 1,011.78 585.01 -
Other Income 37.26 48.32 7.22 - 1.95
Total Revenue (A) 1,033.66 1,059.12 1,019.00 585.01 1.95
Cost of Goods Purchased 798.63 867.16 872.88 500.24 -
Employee Benefit Expenses 88.12 76.35 52.21 39.76 1.29
Other Expenses 105.24 72.47 48.55 14.68 0.22

8|Page Basu & Basu

Shakers Appliances Private Limited Investment Document and Business Plan

Operating Expenses(B) 992.00 1,015.98 973.64 554.68 1.51

Operating Margin 41.65 43.14 45.35 30.33 0.44
Finance Charges (C ) 26.12 27.47 27.31 24.48 0.66
Depreciation (D) 2.84 1.84 3.88 3.60 2.91
Total Expenditure (B+C+D) 1,020.96 1,045.29 1,004.84 582.77 5.08
PBITD (A-B) 41.65 43.14 45.35 30.33 0.44
Profit Before Tax (PBT) 12.69 13.83 14.16 2.25 (3.13)
Income Tax 3.92 3.56 3.68 (1.23) 0.08
Profit After Tax (PAT) 8.77 10.27 10.48 3.48 (3.20)

Balance Sheet
Particulars FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21
I. EQUITY & LIABILITIES
Shareholder's Fund
Share Capital 5.50 5.50 5.50 5.50 5.50
Reserves and Surplus 50.31 60.58 71.07 74.55 71.35
55.81 66.08 76.57 80.05 76.85
Non-Current Liabilities
Long Term Borrowings 47.54 47.49 46.42 146.31 146.87
Deferred Tax Liability(Net) - - - 0.56 0.63
Other Long Term Liabilities 79.59 99.59 99.59 47.00 47.00
127.13 147.08 146.02 193.87 194.50
Current Liabilities
Short-Term Borrowings 199.22 187.54 204.10 206.27 204.32
Trade Payables 866.85 304.58 357.07 69.43 69.43
Other Current Liabilities 99.28 50.85 56.15 - -
Short-Term Provisions 20.82 25.82 53.77 40.95 40.95
1,186.16 568.79 671.09 316.64 314.69
Total Liabilities 1,369.10 781.95 893.68 590.56 586.04
II. ASSETS
Non-Current Assets
Fixed Assets
Tangible Assets 19.33 61.76 58.61 55.01 52.10
Investments 0.70 0.18 0.18 - -
Long Term Loan and Advances 2.72 2.72 4.72 17.88 17.88
Deferred Tax Assets (Net) 1.71 1.30 0.70 - -
Other Non-Current Assets 2.23 2.23 2.23 1.78 1.78
26.69 68.18 66.44 74.68 71.77
Current Assets
Inventories 371.69 501.76 545.13 424.39 424.39
Trade Receivables 926.16 180.19 233.19 65.16 65.16
Cash & Cash Equivalent 18.55 3.75 20.84 15.89 14.28
Other Current Assets 26.01 28.07 28.07 10.45 10.45
1,342.41 713.77 827.23 515.88 514.27
Total Assets 1,369.10 781.95 893.68 590.56 586.04

9|Page Basu & Basu

Shakers Appliances Private Limited Investment Document and Business Plan

It is evident from the past financials that in the past many years, the company had posted a steady
margin at PBT level. As observed, the company had started facing severe strain on its total revenue
as well as profit margin from financial year 2019-20 and could not stabilize its operation since then.
The shortfall in the projections was mainly on account of its inability to supply products in the market
which is mainly due to its working capital crisis and also for the reasons stated in Chapter 3 of this
report.

Shakers is proud to be the harbinger of the care, commitment and concern, the corporate mantras
of the conglomerate were taken into consideration at the very outset and had been instilled with its
associates since then. And the result is the name Shakers Appliances Pvt. Ltd. has been synonymous
with trust and reliability. Shakers is dedicated to the delivery of quality products. Its business practices
and processes are designed to achieve quality products that meet the expectations of the
customers, colleagues, business partners and regulators. It has a relentless passion of quality in
everything they do.

Shakers operate through direct marketing. It has a strong direct marketing and dealer marketing
presence particularly in the eastern region. With certain unique features and product quality Shakers
exclusively deal with Kitchen Chimney, Water Heater, Water Purifier, Built-in Hobs, Gas Cook Tops and
other kitchen accessories.

10 | P a g e Basu & Basu

Shakers Appliances Private Limited Investment Document and Business Plan

Chapter 3
Reasons for downturn in performance of the company

The detailed reasons for liquidity crunch and estimated Cash Gap identified by the Company and
Comments of Basu & Basu regarding the same have been discussed below:
Cash Flow adversely affected due to huge loss caused by defective supply from a new vendor from
China
In the middle of 2018, the company imported full container of Induction Oven from China and sold
out majority of the imported products to consumers. After a few days, all of the products so sold were
taken back by the company for quality issue which occurred due to use of aluminum wire instead of
copper wire. The loss incurred was huge and wiped out a major chunk of the working capital of the
company. The company is yet to recover the said loss and yet to fill the working capital gap caused
by said loss.
Arising out of the hard lessons learnt, Shakers has stopped dealing with any untested vendors and as
a policy sticking to only verified vendors.

Supply chain disruption due to pandemic

The COVID-19 pandemic has posed significant challenges for supply chains globally. Multiple
national lockdowns continue to slow or even temporarily stop the flow of raw materials and finished
goods, disrupting manufacturing as a result. However, the pandemic has not necessarily created any
new challenges for supply chains. In some areas, it brought to light previously unseen vulnerabilities,
and of course, many organizations have suffered staff shortages and losses due to COVID-19. But
overall, it has accelerated and magnified problems that already existed in the supply chain.
COVID-19 has disrupted supply chains around the world. The COVID-19 pandemic has also disrupted
global supply chain networks in an unprecedented way. Supply-demand imbalances have pushed
manufacturers across sectors to grapple with multiple challenges including rising commodity prices,
logistics disruptions & port congestions, and shifting customer behavior.

Inability to achieve targeted volume as planed

The Company had yearly Sales and Marketing target based upon the policy formulated at the time
of inception. However, when the Project became operational, it could not achieve the capacity
utilization as planned and expected margins. The position became exaggerated due to adverse
effect on cash flow on account of loss caused by defective supply from China coupled with Supply
chain disruption due to Covid-19 pandemic. Due to the same the company started facing problems
to service its debt and other obligation

11 | P a g e Basu & Basu

Shakers Appliances Private Limited Investment Document and Business Plan

Chapter 4
Business Plan

To come out of the present situation as explained above, the company has planned to infuse the
required working capital by way of issue of Optionally Convertible Debentures after assessing the
working capital gap and by considering various one time outstanding payables in the nature of due
to employee, suppliers and also statutory dues. The strategic capital infusion, by way of bringing in
strategic investors, would be made with the strategy of revamping its marketing network and
distribution channel as well as rationalizing the pricing and margins of each products. The cutoff date
have been assumed in this report as April 2022.
Since, the promoters are actively involved in the business since inception and are established well in
their existing segment for a considerable period, the company is confident in marketing the services
and products in the business plan with much improved financials and as such, an investment document
outlining the key operational and financial matters was required to arrange financing for the project.

In view of above, the Company has requested M/s. Basu & Basu, Chartered Accountants, to
conduct the Techno Economic Viability Study and to draw up an Investment Documents and
Business Plan. Basu & Basu, a TEV consultant an empaneled with State Bank of India and several
other nationalized banks have been engaged to prepare and submit the said TEV Report. Basu &
Basu after collecting all required inputs and information from the promoters and from the market has
developed this report, for the purpose of approaching to the prospective investors for funding the
said project of the company which is estimated at Rs. 500.00 Lacs in the form of Optionally
Convertible Debentures. At the same time, it has been assumed that the company will approach its
banker Axis Bank Limited for restructuring its existing debt which has been considered in this Report.

Chapter 5
Product and Services

Product Categories:

1. Kitchen Chimney - Kitchen chimney is an appliance that absorbs smoke, fumes

from kitchen and makes kitchen clean and oil, smoke free. In fact,
modern kitchen chimney adds style and decor to your modular kitchen.

2. Hobs - Traditional gas stoves have a freestanding body type while

modern hobs have a built-in design. Traditional gas stoves are limited to
basic functions such as on and off. On the other hand, modern hobs

12 | P a g e Basu & Basu

Shakers Appliances Private Limited Investment Document and Business Plan

come with an array of features that make cooking easy. To sum up, hobs are definitely a better
choice over gas stoves for modern kitchens.

3. Gas Oven - A gas stove is a stove that is fueled by combustible gas such as
syngas, natural gas, propane, butane, liquefied petroleum gas or other
flammable gas. Before the advent of gas, cooking stoves relied on solid fuels
such as coal or wood.

4. Water Purifier - One major purpose of water purification is to provide clean

drinking water. The purification procedure reduces the concentration of
contaminants such as suspended particles, parasites, bacteria, algae, viruses,
and fungi.

5. Water Heater - Water heating is a heat transfer process that uses an energy
source to heat water above its initial temperature. Typical domestic uses of hot
water include cooking, cleaning, bathing, and space heating. In industry, hot
water and water heated to steam have many uses.

6. Modular Kitchen: Apart from the functioning appliances, Shakers Appliances

have different modular kitchen designs that help people optimize their own and get themselves a
glamorous treat.

Spares: Chimney, Hobs, Water Heater and Water Purifier

Services: Chimney, Hobs, Water Heater and Water Purifier

13 | P a g e Basu & Basu

Shakers Appliances Private Limited Investment Document and Business Plan

Chapter 6
Market demand and distribution channels

6.1 Market Demand:

India Kitchen Appliances Market Size, Share & Analysis by Product Type, Hobs, Blender,
Microwave, Cooker Hood, Food Processor, Toaster, Electric Cooker, Built in Oven, Electric
Kettle, Dishwasher, Coffee Machine & Others, Forecast and Opportunities, 2021-2026.

Covid 19 pandemic has had a significant impact on the Indian economy with the country
reporting negative GDP growth of over 7% for 2020. The country historically saw strong
average GDP growth; however, pandemic led to national lockdowns caused the Indian
economy to contract. The country could see marginal growth in the 3rd and 4th quarters.
Pandemic has been challenging for consumer goods companies in 2020 and most kitchen
appliances manufacturers reported declines in their turnovers especially in Q1 and Q2 of
2020. With the national lockdowns, supply chain disruptions caused significant damage to
kitchen appliance sales and the closure of retail stores did further damage in 2020; however,
Kitchen appliances manufacturers have reported improved sales in Q1 and Q2 of 2021.

In the year 2021 and subsequent years, electric cooking appliances are expected to record
higher growth as they provide enhanced convenience to users and continuance of work
from home and high electrification has boosted the demand. With a whopping population
of around 1.4 billion people, and with a growing middle class population of over 270 million,
the country presents vast opportunities for kitchen appliances owing to the low penetration
of these appliances compared with other developed economies. Tier-II and Tier III cities are
already exhibiting stronger demand for these appliances in 2021. According to our new
report, large cooking appliances like Built-in Ovens and Built-in Hobs witnessed a CAGR of
over 8% in value terms during 2015-20 on the back of the growing popularity of modular
kitchens. Most other categories also recorded value growth, owing to rising number of
nuclear families and strongly supported by improved sales infrastructure in the form of
specialist stores & e-commerce players.

The pandemic caused traditional distribution channels to witness negative volume growth

14 | P a g e Basu & Basu

Shakers Appliances Private Limited Investment Document and Business Plan

whereas it accelerated kitchen appliance sales through e-retailers significantly and most e-
retailers reported strong double-digit sales, forcing companies to become more flexible and
adopt digital first strategies. The trend is anticipated to continue, as around 67% of Indian
shoppers expressed their opinion to continue shopping through e-retailers in post covid
period as well.

Kitchen appliance manufacturers have reported improved sales in 2021 and growth is
expected to gain further momentum with upcoming festive seasons. This would help offset
the economic impact faced in 2020. In terms of the competitive landscape, the kitchen
appliances market is a fragmented market, wherein different companies lead in different
categories. LG continues to remain market leader in the Microwave category, while Faber
Heat Kraft leads in freestanding cooker hoods.

6.2 Vision, Values and Core Strategy

Apart from the quality policy to consistently provide superior quality products and services
surpassing customer expectations and on time delivery at affordable prices, the Vision,
Values and Core Strategy of Shakers are as follows:

Core Vision: Shakers Product in every Indian kitchen.

Core Values: (a) Quality products at affordable prices (b) Trust, Transparency and
knowledge in whatever Shakers do (c) Fair dealings with every stakeholders and (d) Respect
for environment.
Core strategy: Providing total kitchen solution rather than just a product.

6.3 Distribution Channel of the company:

The following are the existing as well as the projected distribution channels of the company

1. Direct Channel or Zero-level Channel (Company to Customer)

It doesn’t involve the inclusion of an intermediary, gets in direct contact with the customer
at the point of sale.

15 | P a g e Basu & Basu

Shakers Appliances Private Limited Investment Document and Business Plan

2. Indirect Channels (Selling Through Dealers/Distributors)

Indirect channels of the company to distribute its products are classified into two types:
One-level Channel (Company to Dealer to Customer): Retailers buy the product from
the company and then sell it to the customers.

Two-Level Channel (Company to Dealer to Retailer to Customer): Wholesalers buy the

bulk from the manufacturers, breaks it down into small packages and sells them to
retailers who eventually sell it to the end customers. Goods which are durable,
standardized and somewhat inexpensive and whose target audience isn’t limited to a
confined area use two-level channel of distribution.

6.4 Distribution Channels for Services

Same channels are used by the company to render services as in the case of selling of
products. With the advent of the internet, and the on-demand business model, even
services of the company will use intermediaries to reach to the final customers.

6.5 The Internet as a Distribution Channel

Other than the traditional direct and indirect channels, the company has planned to use
marketplaces like Amazon and other intermediaries like aggregators (uber, Instacart) to
deliver the goods and services.

16 | P a g e Basu & Basu

Shakers Appliances Private Limited Investment Document and Business Plan

Chapter 7
SWOT Analysis of the Project
SWOT of the Project
STRENGTHS WEAKNESSES
Shakers is an existing company and the existing
businesses are still in operation. Many companies are engaged in the
The past and also existing marketing and similar line of business which may create
distribution network of Shakers would facilitate competition to some extent. However
selling of Product. the group is experienced to handle this
The promoters have desired business acumen type of situation.
with sufficient experience in the respective field Setting Competitive pricing: Shakers may
and have sufficient means to promote the need to compromise with its pricing in
project. view of the competitiveness in the
Availability of suitable skilled sales & marketing market.
personnel.
OPPORTUNITIES THREATS
There are many small appliances which are not
present in the product portfolio of Shakers. This is
something which Shakers can do to expand its
targeted customer base and to offer more
products from its own brand.
Any adverse Government policy may
Shakers can capitalize the rise in E-commerce
affect the performance of sector.
sales across India directly and through partners
Competition for the domestic sector from
like Amazon.
Japan & China.
Shakers can concentrate on developing and
Pricing Threats: One of threats that could
emerging markets in India and neighbouring
seriously impact financial health in the
countries. These emerging markets can help
business could be low-cost competitors, a
Shakers build its brand in a nascent market and
partner re-entering into market space
thereby give a boost to the revenue of the
Competition posed by new entrants in
brand.
this Industry: As this sector is considered to
Increase product portfolio depth is
be one of the core sectors, high level
another opportunity which Shakers can
competition from the peer groups are
capitalize on. It can sell more products to its
always expected.
already existing huge customer base.
Entry of foreign brands.
The consumer durables segment is one of the
Increasing Product and distribution costs.
segments where service is always a major
problem because of the nature of the products.
Thus, innovations in service delivery will help the
brand in brand equity as well as in becoming a
trustworthy brand.

17 | P a g e Basu & Basu

Shakers Appliances Private Limited Investment Document and Business Plan

Chapter 8
Details of the Business Plan

8.1 Key operational Assumptions:

8.1.1 Operational period: It is assumed to be started at the beginning of financial year 2022-23.
Financing and project start date have been assumed in April 2022 and operation start date have
been assumed on April 2022. Projections for 8 years Operational period have been considered in
this plan.

8.1.2 Various Assumptions for Indirect Costs:

Nature of Expenses UOM Rate Expenses Ratio based upon
Freight Inward % 2.00% Purchase
Packing Material % 0.25% Purchase
Other Consumables % 0.10% Sales
Electricity Charges Rs. 2,50,000 Estimated
Employee Benefit Expenses Rs. 40,00,000 Estimated
Telephone & Internet Charges Rs. 65,000 Estimated
General Insurance Rs. 1.00% Fixed Asssets
Repairs and Maintenance Rs. 1.50% Fixed Asssets
Postage & Courier Rs. 1,50,000 Estimated
Printing & Stationery Rs. 12,000 Estimated
Rent of Office & Godown Rs. 20,000 Estimated
Housekeeping & Pest Control Rs. 20,000 Estimated
Licenses & Taxes % 20,000 Estimated
Travelling & Conveyance % 5.00% Sales
Audit Fees % 50,000 Estimated
Professional & Legal Charges % 1,20,000 Estimated
Office & Misc. Expenses % 60,000 Estimated
Transit Insurance % 0.01% Purchase
Dealers Commission % 0.00% Sales
Freight Outward % 2.00% Sales
Sales Promotion Expenses % 5.00% Sales
Advertisement Expenses % 3.00% Sales
Online Selling Expenses % 2.00% Sales
Misc. Other Expenses % 0.75% Sales
8.1.3 Others Operating Assumptions:
Trade Receivables: Assumed at 60 Days Net Sales.
Finished Goods Stock: Assumed at 60 Days Sale quantity.
Sales Price: It has assumed increase @2% Y-O-Y.
Sales Volume: It has been assumed @ 10% Y-O-Y.

18 | P a g e Basu & Basu

Shakers Appliances Private Limited Investment Document and Business Plan

8.2 Financing Assumptions:

The Plan is assumed to be funded in the form of Optionally Convertible Debentures and the same
will be used for Shakers working capital requirement, payment of certain overdue tax liabilities and
outstanding employees and vendors dues. Optionally Convertible Debentures is assumed to come
from Private Investors. The terms assumed for the private equity is as below;
Return on investment (Cumulative) 16% p.a.
Term (Yrs) 8
Bank Loan Moratorium (Yrs) 2 years
Bank Loan Rate of Interest (%) 9.50%

8.3 Outstanding Payables:

Various one time payables of the company along with the schedule of planned
payment is listed out below:
Projected date of
Sl No. Particulars Amount (Rs.)
payment
1 Employment dues outstanding 8.25 10/04/2022
2 Creditors for Supply of Services 6.75 30/04/2022
3 Goods & Service Tax 17.25 10/04/2022
4 Tax Deducted At Source 2.50 10/04/2022
5 Provident Fund 1.50 10/04/2022
6 Other Statutory dues 3.75
7 Outstanding Rent 2.50 15/04/2022
8 Misc. Others 12.50 30/04/2022
Grand Total 55.00

8.4 Projected product Mix and Volume:

2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30
Particulars UOM
Projected Projected Projected Projected Projected Projected Projected Projected
Water Heater (Geyser) 10,000 10,500 11,550 12,705 13,976 15,373 16,910 18,601
-Curve series 10Ltr Pcs 200 210 231 254 280 307 338 372
-Digitab 6Ltr Pcs 200 210 231 254 280 307 338 372
-ZV 15Ltr Pcs 500 525 578 635 699 769 846 930
-EC 204(25 Ltrs) Pcs 300 315 347 381 419 461 507 558
-EC P 314 Pcs 900 945 1,040 1,143 1,258 1,384 1,522 1,674
-ZV 25Ltr Pcs 1,000 1,050 1,155 1,271 1,398 1,537 1,691 1,860
-ZV 50Ltr Pcs 5,000 5,250 5,775 6,353 6,988 7,687 8,455 9,301
-ZV 50Ltr Horizontal Pcs 1,500 1,575 1,733 1,906 2,096 2,306 2,537 2,790
-ZV 60Ltr Pcs 400 420 462 508 559 615 676 744
Kitchen Chimney 1,560 1,716 1,888 2,076 2,284 2,512 2,764 3,040
-Blade 60 Pcs 240 264 290 319 351 387 425 468
-Blade 90 Pcs 120 132 145 160 176 193 213 234

19 | P a g e Basu & Basu

Shakers Appliances Private Limited Investment Document and Business Plan

-Elegance 60 Pcs 120 132 145 160 176 193 213 234
-Magnum 60 Pcs 360 396 436 479 527 580 638 702
-Magnum 90 Pcs 240 264 290 319 351 387 425 468
-Midas Pcs 120 132 145 160 176 193 213 234
-Orca Gas HC Pcs 240 264 290 319 351 387 425 468
-Tew 60 Pcs 120 132 145 160 176 193 213 234
Hobs 360 396 436 479 527 580 638 702
-Prism Pcs 240 264 290 319 351 387 425 468
-Quartz Pcs 120 132 145 160 176 193 213 234
Ovens 960 1,056 1,162 1,278 1,406 1,546 1,701 1,871
M211 Pcs 240 264 290 319 351 387 425 468
M311 Pcs 360 396 436 479 527 580 638 702
M411 Pcs 120 132 145 160 176 193 213 234
-S210 - STEEL Pcs 240 264 290 319 351 387 425 468
Misc. Items, Spares and
Pcs 3,000 3,150 3,465 3,812 4,193 4,612 5,073 5,580
Accessories
Modular Kitchen Pcs 10 20 40 80 160 160 160 160
Total 15,890 16,838 18,540 20,430 22,545 24,783 27,246 29,954

8.5 Projected Pricing:

2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30
Particulars
Projected Projected Projected Projected Projected Projected Projected Projected
Water Heater (Geyser) 63,000 64,260 65,545 66,856 68,193 69,557 70,948 72,367
-Curve series 10Ltr 6,500 6,630 6,763 6,898 7,036 7,177 7,320 7,466
-Digitab 6Ltr 5,000 5,100 5,202 5,306 5,412 5,520 5,631 5,743
-ZV 15Ltr 7,000 7,140 7,283 7,428 7,577 7,729 7,883 8,041
-EC 204(25 Ltrs) 4,000 4,080 4,162 4,245 4,330 4,416 4,505 4,595
-EC P 314 5,500 5,610 5,722 5,837 5,953 6,072 6,194 6,318
-ZV 25Ltr 6,500 6,630 6,763 6,898 7,036 7,177 7,320 7,466
-ZV 50Ltr 9,500 9,690 9,884 10,081 10,283 10,489 10,699 10,913
-ZV 50Ltr Horizontal 9,000 9,180 9,364 9,551 9,742 9,937 10,135 10,338
-ZV 60Ltr 10,000 10,200 10,404 10,612 10,824 11,041 11,262 11,487
Kitchen Chimney 1,09,500 1,11,690 1,13,924 1,16,202 1,18,526 1,20,897 1,23,315 1,25,781
-Blade 60 16,000 16,320 16,646 16,979 17,319 17,665 18,019 18,379
-Blade 90 17,500 17,850 18,207 18,571 18,943 19,321 19,708 20,102
-Elegance 60 12,000 12,240 12,485 12,734 12,989 13,249 13,514 13,784
-Magnum 60 14,000 14,280 14,566 14,857 15,154 15,457 15,766 16,082
-Magnum 90 16,000 16,320 16,646 16,979 17,319 17,665 18,019 18,379
-Midas 11,000 11,220 11,444 11,673 11,907 12,145 12,388 12,636
-Orca Gas HC 12,000 12,240 12,485 12,734 12,989 13,249 13,514 13,784
-Tew 60 11,000 11,220 11,444 11,673 11,907 12,145 12,388 12,636
Hobs 21,000 21,420 21,848 22,285 22,731 23,186 23,649 24,122
-Prism 9,000 9,180 9,364 9,551 9,742 9,937 10,135 10,338
-Quartz 12,000 12,240 12,485 12,734 12,989 13,249 13,514 13,784
Ovens 14,000 14,280 14,566 14,857 15,154 15,457 15,766 16,082
M211 3,500 3,570 3,641 3,714 3,789 3,864 3,942 4,020
M311 4,000 4,080 4,162 4,245 4,330 4,416 4,505 4,595
M411 5,000 5,100 5,202 5,306 5,412 5,520 5,631 5,743
-S210 - STEEL 1,500 1,530 1,561 1,592 1,624 1,656 1,689 1,723
Misc. Items, Spares and Accessories 100 102 104 106 108 110 113 115
Modular Kitchen 1,00,000 1,02,000 1,04,040 1,06,121 1,08,243 1,10,408 1,12,616 1,14,869

20 | P a g e Basu & Basu

Shakers Appliances Private Limited Investment Document and Business Plan

8.6 Other Assumptions:

8.6.1. Existing Loan and additional Capital Infusion:
Particulars Details Amount Remarks
Existing Loan Details:
As on 31/01/2022 (inl.
Cash Credit/Working Capital 2,04,00,000
Interest)
Optionally Convertible
Capital Infusion required: 5,00,00,000
Debentures (OCD)
Application of funds from issue of Debentures:
Working Capital 89% 4,45,00,000 As per Assessment
Overdue Statutory Dues Payment 5% 25,00,000 As per Projected Financials
Overdue Salary & Creditors Payment 6% 30,00,000 As per Projected Financials
@8% Y-O-Y and balance
ROI assumed for Debentures (Cumulative) 16% p.a. 8% at the end of 8th year
on cumulative basis
Redemption of Debentures 8th Year As per Projected Financials
Existing Bank Loan Interest 11.50% As per Projected Financials
Restructured Bank Loan Interest 9.50% Restructuring Assumed
31
Cut Off Date for Loan Restructuring March Restructuring Assumed
2022
Existing Bank Loan Interest Moratorium 2 Years Restructuring Assumed
Existing Bank Loan Principal Moratorium 2 Years Restructuring Assumed

8.6.2 Price Index: (Base Year = 2022-23)

Particulars 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30
Projected Projected Projected Projected Projected Projected Projected Projected
Freight Inward 0.0% 2.0% 2.1% 2.2% 2.3% 2.4% 2.6% 2.7%
Packing Material 0.0% 1.0% 1.1% 1.1% 1.2% 1.2% 1.3% 1.3%
Consumables & Stores 0.0% 1.0% 1.1% 1.1% 1.2% 1.2% 1.3% 1.3%
Electricity Charges 0.0% 2.0% 2.1% 2.2% 2.3% 2.4% 2.6% 2.7%
Employee Benefit Expenses 0.0% 3.0% 3.2% 3.3% 3.5% 3.6% 3.8% 4.0%
Telephone & Internet Charges 0.0% 2.0% 2.1% 2.2% 2.3% 2.4% 2.6% 2.7%
General Insurance 0.0% 2.0% 2.1% 2.2% 2.3% 2.4% 2.6% 2.7%
Repairs and Maintenance 0.0% 1.0% 1.1% 1.1% 1.2% 1.2% 1.3% 1.3%
Postage & Courier 0.0% 2.0% 2.1% 2.2% 2.3% 2.4% 2.6% 2.7%
Printing & Stationery 0.0% 1.5% 1.6% 1.7% 1.7% 1.8% 1.9% 2.0%
Rent of Office & Godowns 0.0% 3.2% 3.4% 3.5% 3.7% 3.9% 4.1% 4.3%
Housekeeping & Pest Control 0.0% 0.2% 0.2% 0.2% 0.3% 0.3% 0.3% 0.3%
Licenses & Taxes 0.0% 1.0% 1.1% 1.1% 1.2% 1.2% 1.3% 1.3%
Travelling & Conveyance 0.0% 2.5% 2.6% 2.8% 2.9% 3.0% 3.2% 3.4%
Audit Fees 0.0% 1.5% 1.6% 1.7% 1.7% 1.8% 1.9% 2.0%
Professional & Legal Charges 0.0% 4.0% 4.2% 4.4% 4.6% 4.9% 5.1% 5.4%
Office & Misc. Expenses 0.0% 1.5% 1.6% 1.7% 1.7% 1.8% 1.9% 2.0%
Transit Insurance 0.0% 2.3% 2.4% 2.5% 2.7% 2.8% 2.9% 3.1%
Freight Outward 0.0% 2.5% 2.6% 2.8% 2.9% 3.0% 3.2% 3.4%
Sales Promotion Expenses 0.0% 1.5% 1.6% 1.7% 1.7% 1.8% 1.9% 2.0%
Advertisement Expenses 0.0% 1.0% 1.1% 1.1% 1.2% 1.2% 1.3% 1.3%
Online Selling Expenses 0.0% 1.6% 1.7% 1.8% 1.9% 1.9% 2.0% 2.1%
Misc. Other Expenses 0.0% 1.6% 1.7% 1.8% 1.9% 1.9% 2.0% 2.1%

21 | P a g e Basu & Basu

Shakers Appliances Private Limited Investment Document and Business Plan

8.6.3 Procurement Pattern:

Particulars Import Domestic Total
Wayer Heater (Geyser) 90% 10% 100%
Kitchen Chimney 100% 0% 100%
Hobs 100% 0% 100%
Ovens 0% 100% 100%
Water Purifiers 0% 100% 100%
Food Waste Disposers (FWD) 100% 0% 100%
Misc. Kitchen Items, Spares and Accessories 80% 20% 100%
Modular Kitchen 0% 100% 100%
70% of Sales 85% of Sales 70% of Sales Value for Modular
Procurement Price
Value Value Kitchen

8.7 Bank Loan Repayment Schedule:

ROI 9.50%
Principal Loan Principal Interest Total Principal
FY Period Interest Total Loan Balance
Balance-PNB Repayment Payment-PNB Repayment Balance
Qtr 1 204.00 4.85 208.85 - - - 208.85 204.00
2022-23

Qtr 2 204.00 4.85 208.85 - - - 213.69 204.00

Qtr 3 204.00 4.85 208.85 - - - 218.54 204.00

Qtr 4 204.00 4.85 208.85 - - - 223.38 204.00

Total 19.38 - - -

Qtr 1 204.00 4.85 208.85 - - - 228.23 204.00

2023-24

Qtr 2 204.00 4.85 208.85 - - - 233.07 204.00

Qtr 3 204.00 4.85 208.85 - - - 237.92 204.00

Qtr 4 204.00 4.85 208.85 - - - 242.76 204.00

Total 19.38 - - -

Qtr 1 204.00 4.85 208.85 10.20 9.69 19.89 227.72 193.80

2024-25

Qtr 2 204.00 4.60 208.60 10.20 9.69 19.89 212.43 183.60

Qtr 3 204.00 4.36 208.36 10.20 9.69 19.89 196.90 173.40

Qtr 4 204.00 4.12 208.12 10.20 9.69 19.89 181.13 163.20

Total 17.93 40.80 38.76 79.56 818.17 714.00

Qtr 1 204.00 3.88 207.88 10.20 9.45 19.65 165.35 153.00

Qtr 2 204.00 3.63 207.63 18.68 150.31 142.80

2025-26

10.20 8.48

Qtr 3 204.00 3.39 207.39 10.20 7.51 17.71 135.99 132.60

Qtr 4 204.00 3.15 207.15 10.20 6.54 16.74 122.40 122.40

Total 14.05 40.80 31.98 72.78 574.06 550.80

22 | P a g e Basu & Basu

Shakers Appliances Private Limited Investment Document and Business Plan

Qtr 1 204.00 2.91 206.91 10.20 2.91 13.11 112.20 112.20

2026-27
Qtr 2 204.00 2.66 206.66 10.20 2.66 12.86 102.00 102.00

Qtr 3 204.00 2.42 206.42 10.20 2.42 12.62 91.80 91.80

Qtr 4 204.00 2.18 206.18 10.20 2.18 12.38 81.60 81.60

Total 10.17 40.80 10.17 50.97 387.60 387.60

Qtr 1 204.00 1.94 205.94 10.20 1.94 12.14 71.40 71.40

2027-28

Qtr 2 204.00 1.70 205.70 10.20 1.70 11.90 61.20 61.20

Qtr 3 204.00 1.45 205.45 10.20 1.45 11.65 51.00 51.00

Qtr 4 204.00 1.21 205.21 10.20 1.21 11.41 40.80 40.80

Total 6.30 40.80 6.30 47.10 224.40 224.40

Qtr 1 204.00 0.97 204.97 10.20 0.97 11.17 30.60 30.60

2028-29

Qtr 2 204.00 0.73 204.73 10.20 0.73 10.93 20.40 20.40

Qtr 3 204.00 0.48 204.48 10.20 0.48 10.68 10.20 10.20

Qtr 4 204.00 0.24 204.24 10.20 0.24 10.44 - 0.00

Total 2.42 40.80 2.42 43.22 61.20 61.20

Qtr 1 0.00 0.00 0.00 - - - 0.00

2029-30

Qtr 2 0.00 0.00 0.00 - - - 0.00

Qtr 3 0.00 0.00 0.00 - - - 0.00

Qtr 4 0.00 0.00 0.00 - - - 0.00

Total - - - - - -

Grand Total 89.63 204.00 89.63 293.63

23 | P a g e Basu & Basu

Shakers Appliances Private Limited Investment Document and Business Plan

Chapter 9
Assessment of Economic Viability

9.1 Project Financials & Returns:

The details of projected financials based upon various assumptions considered is shown under
Chapter-10 of this report. Projected Financials include projected Profitability, projected Balance
Sheet, projected Cash Flow, Break Even Point and certain key Ratios on Projected Financials. The
summary of 8 years Average Returns shows post tax net profit after payment of debenture interest
and premium is Rs. 143.95 Lacs (7.86% on Revenue), 8 years Average Return on Capital Employed
is 16.24% and 8 years Average PAT is 8.52 %.

9.2 Project Returns:

The Normal Payback period is around 5.25 Years while the discounted payback period @10% is
around 6.50 Years.

9.3 Project Risks:

Risk Area Assessment Mitigation

Litigation / Regulatory risks No Not required
Brand risks No Not required
Technology Obsolescence Latest Up to date technology to
Moderate
Risks be employed
Low, skilled and semi -skilled
Human Risks Not required
manpower available
Financial risks Medium Close monitoring to be made
Data theft/integrity risks Very low Insurance
Market risks No Demand gap high
Natural calamity risks Low Insurance required

9.4 Project Sensitivity

The Project is highly sensitive to;
Quantity of sales assumed
Selling Price assumed.

The Project is moderately sensitive to;

Operating Cost increase

Debt Equity

24 | P a g e Basu & Basu

Shakers Appliances Private Limited Investment Document and Business Plan

9.5 Sensitivity Analysis

A sensitivity analysis was carried out to assess the impact of the following scenarios on the major
financial parameters.
The summary of sensitivity analysis is provided in the following exhibit:

Revenue Financial Impact

Scenario
Amount (Rs. Amount (Rs.
% Results
in Lacs) in Lacs)
Avg. Sales Value Assumed 100.00% 1,830.86 -
-
Decrease in Sales value by 5% 95.00% 1,739.32 91.54 Decrease in cash flow & Profit

Avg. Purchase Cost Assumed 100.00% 1,245.49 -

-
Increase in Purchase Cost by
105.00% 1,307.77 62.27 Reduction in Profit
5%
Avg. Bank Interest Assumed 100.00% 11.45 -
-
Increase in Interest rate by 2% 102.00% 11.68 0.23 Reduction in Profit

Avg. Net Profit Assumed 100.00% 183.95 -

-
Decrease in Net Profit by 2% 98.00% 180.27 3.68 Reduction in Profit

It should be noted that the viability parameters are not able to withstand the adverse variations as
above, In case of such adverse variations, the company will have to infuse further funds to reach
to the planned level of business.
9.6 Break Even Point

As per assessment, the Break Even Point is depicted in the following exhibit:

Average
Particulars 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30
of 8 years

Sales (A) 1,830.86 1,133.70 1,246.46 1,425.25 1,645.32 1,931.97 2,157.99 2,411.23 2,695.01

Variable Cost (B) 1,389.40 919.59 1,004.93 1,117.72 1,263.27 1,450.92 1,616.88 1,780.82 1,961.10

Contribution (A-B) 441.46 214.11 241.53 307.53 382.05 481.04 541.11 630.41 733.90

P/V Ratio (C ) 23.30% 18.89% 19.38% 21.58% 23.22% 24.90% 25.07% 26.14% 27.23%

Fixed Costs (D ) 151.35 131.07 143.71 146.74 150.04 153.62 157.51 161.74 166.35

Break Even Sales

654.56 694.00 741.61 680.09 646.15 616.96 628.16 618.63 610.85
(D/C)

25 | P a g e Basu & Basu

Shakers Appliances Private Limited Investment Document and Business Plan

Chapter 10
Financials & Returns

10.1 Projected Statement of Profit and Loss Amount Rs. In Lacs

2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30
Particulars
Projected Projected Projected Projected Projected Projected Projected Projected
Sales
Trading Sales 1,133.70 1,238.48 1,408.30 1,618.32 1,893.69 2,107.05 2,346.09 2,613.94
Service Sales - 7.99 16.95 27.00 38.28 50.94 65.14 81.07
Net Sales 1,133.70 1,246.46 1,425.25 1,645.32 1,931.97 2,157.99 2,411.23 2,695.01
Variable Cost
Purchase of Goods
- Imported 705.08 764.20 857.43 962.03 1,079.40 1,211.09 1,358.84 1,524.62
- Indigenous 105.98 121.69 149.65 194.65 272.95 293.89 311.13 326.95
Sub Total 811.06 885.89 1,007.08 1,156.68 1,352.35 1,504.98 1,669.97 1,851.57
Add: Opening Stock 160.00 188.95 206.41 234.72 269.72 315.61 351.18 391.02
Less: Closing Stock 188.95 206.41 234.72 269.72 315.61 351.18 391.02 435.66
Cost of Goods Purchased 782.11 868.43 978.77 1,121.68 1,306.46 1,469.42 1,630.13 1,806.93
Gross Margin % 31.01% 30.33% 31.33% 31.83% 32.38% 31.91% 32.39% 32.95%
General & Admin Expenses
Freight Inward 16.22 16.55 16.89 17.27 17.67 18.09 18.56 19.05
Packing Material 2.03 2.05 2.07 2.09 2.12 2.14 2.17 2.20
Consumables & Stores 1.13 1.24 1.41 1.62 1.89 2.11 2.35 2.61
Electricity Charges 2.50 2.55 2.60 2.66 2.72 2.79 2.86 2.94
Employee Benefit Expenses 30.00 41.20 42.50 43.90 45.43 47.08 48.89 50.85
Directors Remuneration 24.00 24.00 24.00 24.00 24.00 24.00 24.00 24.00
Telephone & Internet Charges 0.65 0.66 0.68 0.69 0.71 0.73 0.74 0.76
General Insurance 0.52 0.53 0.54 0.55 0.57 0.58 0.60 0.61
Repairs and Maintenance 0.78 0.79 0.80 0.81 0.82 0.83 0.84 0.85
Postage & Courier 1.50 1.53 1.56 1.60 1.63 1.67 1.72 1.76
Printing & Stationery 0.12 0.12 0.12 0.13 0.13 0.13 0.13 0.14
Rent of Office & Godowns 0.20 0.21 0.21 0.22 0.23 0.24 0.25 0.26
Housekeeping & Pest Control 0.20 0.20 0.20 0.20 0.20 0.20 0.20 0.20
Licenses & Taxes 0.20 0.20 0.20 0.21 0.21 0.21 0.21 0.22
Travelling & Conveyance 56.69 58.10 59.63 61.27 63.04 64.96 67.03 69.28
Audit Fees 0.50 0.51 0.52 0.52 0.53 0.54 0.55 0.56
Professional & Legal Charges 1.20 1.25 1.30 1.36 1.42 1.49 1.57 1.65
Office & Misc. Expenses 0.60 0.61 0.62 0.63 0.64 0.65 0.66 0.68
26 | P a g e Basu & Basu
Shakers Appliances Private Limited Investment Document and Business Plan

Misc. Other Expenses 8.50 8.64 8.78 8.94 9.10 9.28 9.47 9.67
Depreciation 2.91 2.61 2.47 2.35 2.23 2.12 2.02 1.92
Sub Total 150.45 163.54 167.11 171.02 175.29 179.85 184.81 190.21
Cost of Goods Sold 932.56 1,031.96 1,145.89 1,292.70 1,481.75 1,649.27 1,814.94 1,997.15
Gross Profit 201.14 214.50 279.36 352.62 450.21 508.72 596.29 697.86
Gross Profit % 17.74% 17.21% 19.60% 21.43% 23.30% 23.57% 24.73% 25.89%
Less: Selling & Distribution Expenses
Transit Insurance 0.10 0.10 0.11 0.11 0.11 0.11 0.12 0.12
Freight Outward 22.67 23.24 23.85 24.51 25.22 25.98 26.81 27.71
Sales Promotion Expenses 56.69 57.54 58.44 59.41 60.44 61.54 62.72 63.98
Advertisement Expenses 34.01 34.35 34.71 35.09 35.50 35.93 36.39 36.88
Online Selling Expenses 1.42 1.44 1.46 1.49 1.52 1.55 1.58 1.61
Provision for Bad & Doubtful Debts 3.21 3.53 4.04 4.66 5.47 6.11 6.83 7.64
Total Selling & Distribution Expenses 118.10 120.20 122.61 125.27 128.26 131.23 134.45 137.94
Profit before Interest but after Dep. 83.04 94.30 156.75 227.35 321.95 377.49 461.84 559.92
Less: Interest
On Term Loan - - - - - - - -
On Working Capital Term Loan 19.38 19.38 17.93 14.05 10.17 6.30 2.42 0.00
Bank Charges & Other Financial Expenses 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25
Cost of Financing of FCD 15.50 - - - - - - -
Debenture Interest @8% 40.00 40.00 40.00 40.00 40.00 40.00 40.00 40.00
Total Interest & Financial Charges 75.13 59.63 58.18 54.30 50.42 46.55 42.67 40.25
Profit Before Taxation 7.91 34.67 98.57 173.05 271.53 330.94 419.16 519.67
Income tax provision 1.98 8.67 24.64 43.26 67.88 82.73 104.79 49.92
Profit After Taxation 5.93 26.00 73.93 129.79 203.65 248.20 314.37 469.75
Debenture Redemption Premium - - - - - - - 320.00
Retained Profit 5.93 26.00 73.93 129.79 203.65 248.20 314.37 149.75
Net Profit % 0.52% 2.09% 5.19% 7.89% 10.54% 11.50% 13.04% 17.43%

27 | P a g e Basu & Basu

Shakers Appliances Private Limited Investment Document and Business Plan

10.2 Projected Balance Sheet

Amount Rs. In Lacs
2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30
Particulars
Projected Projected Projected Projected Projected Projected Projected Projected
LIABILITIES:
i) Equity Share Capital 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50
ii) Reserve and Surplus 5.93 31.93 105.86 235.65 439.29 687.49 1,001.87 1,151.62
iii) Optionally Convertible Debenture 500.00 500.00 500.00 500.00 500.00 500.00 500.00 -
iv) Working Capital Term Loan 223.38 242.76 181.13 122.40 81.60 40.80 - -
v) Current Liabilities for Goods - - - - - - - -
vi) Provisions for Income tax 1.98 8.67 24.64 43.26 67.88 82.73 104.79 49.92
vii) Other Current Liabilities 7.68 7.78 7.88 8.00 8.12 8.25 8.39 8.54
Total 744.47 796.64 825.01 914.81 1,102.39 1,324.78 1,620.55 1,215.57

ASSETS:
i) Gross Block 110.43 110.43 110.43 110.43 110.43 110.43 110.43 110.43
Less: Depreciation 60.93 63.41 65.76 67.99 70.11 72.13 74.05 75.86
ii) Net Block 49.50 47.02 44.67 42.44 40.32 38.30 36.39 34.57
ii) Long Term Loans & Advances 15.90 18.25 22.45 29.20 40.94 44.08 46.67 49.04
iii) Security & Other Deposits 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00
iii) Trade Receivables 160.61 176.58 201.91 233.09 273.70 305.71 341.59 381.79
iv) Other Non Current Assets 163.81 180.67 155.49 130.66 118.77 115.49 112.76 110.25
v) Cash and Bank Balance 113.73 109.03 91.14 116.44 195.17 337.28 537.33 104.35
vi) Inventories 188.95 206.41 234.72 269.72 315.61 351.18 391.02 435.66
vii) Advance Tax 1.98 8.67 24.64 43.26 67.88 82.73 104.79 49.92
Total 744.47 796.64 825.01 914.81 1,102.39 1,324.78 1,620.55 1,215.57

28 | P a g e Basu & Basu

Shakers Appliances Private Limited Investment Document and Business Plan

10.3 Projected Cash Flows

Amount Rs. In Lacs
2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30
Particulars
Projected Projected Projected Projected Projected Projected Projected Projected
Net Profit after tax 5.93 26.00 73.93 129.79 203.65 248.20 314.37 469.75
Depreciation 2.91 2.61 2.47 2.35 2.23 2.12 2.02 1.92
Debenture Redemption Premium - - - - - - - (320.00)
Provisions/Amortization 1.98 8.67 24.64 43.26 67.88 82.73 104.79 49.92
Changes in WC (340.11) (33.31) (53.49) (66.03) (86.35) (67.41) (75.54) (84.65)

Cash flow from Operations (a) (329.29) 3.96 47.55 109.37 187.41 265.65 345.64 116.93

Purchase of Fixed Assets

One Time Payables (55.00) - - - - - - -
Advance Tax (1.98) (8.67) (24.64) (43.26) (67.88) (82.73) (104.79) (49.92)

Cash flow from Investing

(56.98) (8.67) (24.64) (43.26) (67.88) (82.73) (104.79) (49.92)
activities (b)
Proceeds from Convertible Debentures 500.00 - - - - - - -
Redemption of Debentures - - - - - - - (500.00)
WCTL Repayment (40.80) (40.80) (40.80) (40.80) (40.80) -
Short term investment(WC) - - - - - - - -

Cash flow from Financing

500.00 - (40.80) (40.80) (40.80) (40.80) (40.80) (500.00)
activities ( c)

Changes in Cash
113.73 (4.70) (17.89) 25.30 78.73 142.11 200.05 (432.99)
balances(a)+(b)+( c)
Opening Cash balance - 113.73 109.03 91.14 116.44 195.17 337.28 537.33
Closing cash Balance 113.73 109.03 91.14 116.44 195.17 337.28 537.33 104.35

29 | P a g e Basu & Basu

Shakers Appliances Private Limited Investment Document and Business Plan

10.4 Financial Ratios on Projected Financials

Average 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30

Particulars
of 8 Yrs Projected Projected Projected Projected Projected Projected Projected Projected

EBIDTA% on Net Sales 14.37% 7.58% 7.77% 11.17% 13.96% 16.78% 17.59% 19.24% 20.85%

EBIT% on Net Sales 14.22% 7.32% 7.57% 11.00% 13.82% 16.66% 17.49% 19.15% 20.78%

EAT% on Net sales 8.52% 0.52% 2.09% 5.19% 7.89% 10.54% 11.50% 13.04% 17.43%

Fixed Asset Turnover Ratio 46.07 22.90 26.51 31.90 38.77 47.92 56.34 66.27 77.97

Return on Capital Employed 16.24% 0.81% 3.33% 9.33% 15.03% 19.84% 20.12% 20.86% 40.60%

Return on Equity 49.37% 51.90% 69.46% 66.38% 53.82% 45.78% 35.82% 31.21% 40.60%

Debt Equity Ratio 0.37 0.95 0.87 0.62 0.34 0.16 0.06 - -

Manpower Ratio on Net sales 2.51% 2.65% 3.31% 2.98% 2.67% 2.35% 2.18% 2.03% 1.89%

Overhead Ratio on Net Sales 9.94% 13.01% 12.91% 11.55% 10.25% 8.96% 8.24% 7.58% 6.99%

Total Direct Cost ratio on Net

68.03% 82.26% 82.79% 80.40% 78.57% 76.70% 76.43% 75.27% 74.11%
Sales

30 | P a g e Basu & Basu

Shakers Appliances Private Limited Information Memorandum on Investment & Business Plan

Chapter 11
Conclusion

The technical feasibility and financial viability of the plan have been reviewed with reference
to the proposed plan. Several inquiry, estimations and analysis have been carried out and
based upon the same, it may be concluded as below:
The plan is technically feasible and financially viable.
The overall financial liquidity and profitability parameters of the project appeared to be
reasonable and satisfactory.
Outstanding payables as proposed in this document appears to be viable and to be
read with the SWOT of the entire project.
The Financial Projections for 8 years were carried out, based on all the Revenue and
Operating Cost assumptions provided in this report. 8 years Cash flow projections, Key
Ratio Analysis and Balance sheets has also been drafted.
Break Even Point for the entire period have been calculated at Rs. 654.56 Lacs

Given the above factors, and the satisfactory financial parameters of the project, and based
on the reasonable assumptions made, no unmitigable anticipation of major risks to the plan
have been observed. However, the Project is highly sensitive to the sales price and volume of
the products of Shakers as assumed, cost of goods sold as considered and finance costs
assumed.

31 | P a g e
Shakers Appliances Private Limited Information Memorandum on Investment & Business Plan

Chapter 12
CMA Data for next 8 years
ASSESSMENT OF WORKING CAPITAL REQUIREMENTS
FORM - II
OPERATING STATEMENT
2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30
Particulars
Proj. Proj. Proj. Proj. Proj. Proj. Proj. Proj.
Rs. in Rs. in Rs. in Rs. in Rs. in Rs. in Rs. in Rs. in
OPERATING CAPACITY
Lacs Lacs Lacs Lacs Lacs Lacs Lacs Lacs
1) REVENUE
a) Gross Sales 1,133.70 1246.46 1,425.25 1,645.32 1,931.97 2,157.99 2,411.23 2,695.01
b) Less: GST - - - - - - - -
c) Net Sale 1,133.70 1,246.46 1,425.25 1,645.32 1,931.97 2,157.99 2,411.23 2,695.01
d) Percentage rise (+) or fall in sales
as compared to previous year 0.00% 9.95% 14.34% 15.44% 17.42% 11.70% 11.74% 11.77%
e) Other Income - - - - - - - -
f) Total Revenue (c+e) 1,133.70 1,246.46 1,425.25 1,645.32 1,931.97 2,157.99 2,411.23 2,695.01

2. EXPENDITURE
I) Cost of Goods Purchased 782.11 868.43 978.77 1,121.68 1,306.46 1,469.42 1,630.13 1,806.93
ii) Power & Fuel 2.50 2.55 2.60 2.66 2.72 2.79 2.86 2.94
iii) Direct Labour 15.00 20.60 21.25 21.95 22.71 23.54 24.44 25.43
iv) Other Manufacturing & Operating
91.04 93.18 95.54 98.10 100.91 103.86 107.05 110.51
Expenses
vi) Sub-Total 890.65 984.76 1,098.17 1,599.60 1,764.48 1,945.80
1,244.39 1,432.81

3. GROSS PROFIT 243.05 261.71 327.08 400.92 499.16 558.38 646.75 749.20
% Gross Profit 21.44% 21.00% 22.95% 24.37% 25.84% 25.88% 26.82% 27.80%

4. EMPLOYEE COST(other managerial & Admn

39.00 44.60 45.25 45.95 46.71 47.54 48.44 49.43
staff)
5. SELLING,ADM.& MISC EXP. 118.10 120.20 122.61 125.27 128.26 131.23 134.45 137.94

6. OPERATING PROFIT(before int. & dep.) 85.95 96.90 159.22 379.61 463.85 561.83
229.70 324.19
(I(iii)-2(vii)-3)
Interest on FCD 40.00 40.00 40.00 40.00 40.00 40.00 40.00 40.00
7. Interest on Working Capital Loan 19.38 19.38 17.93 14.05 10.17 6.30 2.42 0.00
Other Financial Charges 15.75 0.25 0.25 0.25 0.25 0.25 0.25 0.25
8. Depreciation 2.91 2.61 2.47 2.35 2.23 2.12 2.02 1.92
9. OPERATING PROFIT (after int. & 7.91 34.67 98.57 173.05 271.53 330.94 419.16 519.67
depreciation)
10. i) ADD : Other non-operating income
a) Non-Operating Income - - - - - - - -
b) Income from Fixed Deposit - - - - - - - -
c) Sub-Total (INCOME) - - - - - - - -
ii) LESS : Other non-operating Exps - - - - - - - -
a) Amortisation of Preliminary Exp. - - - - - - - -
b) Debenture Redemption Premium - - - - - - - (320.00)
c) Sub-Total (EXPENSES) - - - - - - - -
iii) Net of other non-operating income/ - - - - - - - (320.00)
expenses (net of 8(I) & 8(ii)

32 | P a g e
Shakers Appliances Private Limited Information Memorandum on Investment & Business Plan

11. PROFIT BEFORE TAX 7.91 34.67 98.57 173.05 271.53 330.94 419.16 199.67
12. PROVISION FOR TAXES 1.98 8.67 24.64 43.26 67.88 82.73 104.79 49.92
13. NET PROFIT (+)/ LOSS (-) 5.93 26.00 73.93 129.79 203.65 248.20 314.37 149.75
14. Proposed Dividend - - - - - - - -
15. RETAINED PROFIT 5.93 26.00 73.93 129.79 203.65 248.20 314.37 149.75
16. RETAINED PROFIT % 100% 100% 100% 100% 100% 100% 100% 100%
17. NET PROFIT PERCENTAGE 0.52% 2.09% 5.19% 7.89% 10.54% 11.50% 13.04% 17.43%
18. INTEREST COVERAGE RATIO 1.45 1.63 2.75 4.25 6.46 8.20 10.93 14.05
ANALYSIS OF BALANCE SHEET
FORM - III
Particulars 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30

CURRENT LIABILITIES
1. Short-term borrowing from banks (incl.
bill purchased, discounted & excess
borrowings on repayment basis)
a) From applicant Bank
b) From other Banks - - - - - - - -
SUB-TOTAL (A) - - - - - - - -
2. Short term borrowings from others - - - - - - - -
3. Sundry Creditors (Trade) - - - - - - - -
4. Advance payment from customers/ - - - - - - - -
deposits from dealers
5. Provision for taxation 1.98 8.67 24.64 43.26 67.88 82.73 104.79 49.92
6. Dividend payable - - - - - - - -
7. Other statut. liability(due within 1 yr) - - - - - - - -
8. Deposits/Debenture/Investment under
term loans/DPCs, etc. (due within1 yr) - - - - - - - -
9. Other current liabilities & provisions 9.65 16.44 32.53 51.26 76.00 90.99 113.18 58.46
( Due within 1yr)(specify major items)
SUB-TOTAL (B) 11.63 25.11 57.17 94.52 143.88 173.72 217.97 108.37

10. TOTAL CURRENT LIABILITIES 11.63 25.11 57.17 173.72 217.97 108.37
94.52 143.88
11. Debentures (not maturing within 1yr) 500.00 500.00 500.00 500.00 500.00 500.00 500.00 -
12. Preference Shares (redeem. after1 yr) - - - - - - - -
13. Term Loans (excldg. Investment 223.38 242.76 181.13 122.40 81.60 40.80 - -
Payable within one year)
14. Deferred Payment Credits - - - - - - - -
15. Term deposits (repayable after 1 yr) - - - - - - - -
16. Advances from customers - - - - - - - -
17. TOTAL TERM LIABILITIES (11 to16) 723.38 742.76 681.13 622.40 581.60 540.80 500.00 -
18. TOTAL OUTSIDE LIABILITIES(10+17) 735.01 767.87 738.30 716.92 725.48 714.52 717.97 108.37
19. Share Capital (including Share Premium) 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50
20. Reserves 5.93 31.93 105.86 235.65 439.29 687.49 1,001.87 1,151.62
21. Quasi Equity /Unsecured Loan - - - - - - - -
22. Share Application Money - - - - - - - -

23. Surplus (+) or Deficit (-) in P & L a/c 5.93 26.00 73.93 129.79 248.20 314.37 149.75
203.65
24. NET WORTH 17.37 63.44 185.29 370.93 648.44 941.20 1,321.74 1,306.87
25. TOTAL LIABILITIES (18+24) 752.38 831.31 923.58 1,087.85 1,373.92 1,655.72 2,039.71 1,415.24

33 | P a g e
Shakers Appliances Private Limited Information Memorandum on Investment & Business Plan

ANALYSIS OF BALANCE SHEET

FORM - III
Particulars 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30

26. Cash & Bank Balances 113.73 109.03 91.14 116.44 195.17 337.28 537.33 104.35
27. Investments (Other than long term inv.)
I) Government & other trust Securities 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
ii) Fixed Deposits with Banks 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
28. I) Receivables other than deff. & export 160.61 176.58 201.91 233.09 273.70 305.71 341.59 381.79
(incld. Bills purchased by bankers)
ii) Export Receivables (incld. Bills 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Purchased/discounted by bankers) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
29. Instalments under deffered receivables
( due within one year ) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
30. A) Stock of Raw Materials 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
B) Stock of Finished Goods 188.95 206.41 234.72 269.72 315.61 351.18 391.02 435.66
C) Stock of Consumables/Packing Material 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
D) Work In Progress 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
31. Advances to suppliers of merchandise 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
32. Advance payment of taxes 1.98 8.67 24.64 43.26 67.88 82.73 104.79 49.92
33. Other current assets 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
34. TOTAL CURRENT ASSETS(26 to 33) 465.27 500.69 552.41 662.51 852.36 1076.91 1374.73 971.72
FIXED ASSETS
'35. Gross Block 110.43 110.43 110.43 110.43 110.43 110.43 110.43 110.43
36. Depreciation on date 60.93 63.41 65.76 67.99 70.11 72.13 74.05 75.86
37. NET BLOCK (35-36) 49.50 47.02 44.67 42.44 40.32 38.30 36.39 34.57
38. Investments/book-debts/advances/
deposits which are not current assets
I) a) Investments in subsidiary 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Companies affiliates
b) Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
ii) Advances For capital goods
& contractors 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
iii) Defferred receivables (excldg. 1 year) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
iv) Security deposits/tender deposits 163.81 180.67 155.49 130.66 118.77 115.49 112.76 110.25
v) Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
39. Obsolete stocks 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
40. Other non-current assets 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
41. TOTAL OTHER NON-CURR. ASSETS 163.81 180.67 155.49 130.66 118.77 115.49 112.76 110.25
(total of 38 to 40)
42. Intangible Assets ( patents, goodwill,
Preliminary exp.,etc.) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
43. TOTAL ASSETS (34+37+41+42) 752.38 831.31 923.58 1087.85 1373.92 1655.72 2039.71 1415.24
44. TANGIBLE NET WORTH (24 - 42) 17.37 63.44 185.29 370.93 648.44 941.20 1321.74 1306.87
45. NET WORKING CAPITAL (34-10) 453.63 475.58 495.24 567.99 708.48 903.19 1156.76 863.34
46. CURRENT RATIO (34/10) 40.00 19.94 9.66 7.01 5.87 6.15 6.26 8.92
47. TOTAL OUTSIDE LIABILITIES/
TANGIBLE NET WORTH (18/44) 42.32 12.10 3.98 1.93 1.12 0.76 0.54 0.08

34 | P a g e
Shakers Appliances Private Limited Information Memorandum on Investment & Business Plan

COMPARATIVE STATEMENT OF CURRENT ASSETS AND CURRENT LIABILITIES

FORM - IV
Particulars 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30

1. A) Stock of Raw Material 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(Months' holding - 60 days)
B) Stock of Finished Goods 188.95 206.41 234.72 269.72 315.61 351.18 391.02 435.66
(Months' holding - 60 days )
C) Stock of Consumables/Packing Material 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(Months' holding - 1 Month)
D) Stock of W.I.P. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
2. Receivables other than export and 160.61 176.58 201.91 233.09 273.70 305.71 341.59 381.79
deferred receivables (including bills
purchased and discounted)
(Months' Sales - 60 days )
3. Export receivables (including bills 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
purchased and disounted)
(Months' Sales - 60 days )
4. Advances to suppliers of merchandise 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
5. Other current assets (including cash 115.71 117.70 115.78 159.70 263.05 420.02 642.13 154.27
& Bank & deferred receivables due
within 1 yr) (specify major items)
6. TOTAL CURRENT ASSETS 465.27 500.69 552.41 662.51 852.36 1076.91 1374.73 971.72
(To agree with 34 in form - III)
B. CURRENT LIABILITIES
(Other than bank borrowings for W. Cap)
7. Sundry Creditors (Trade) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(Months' purchases - 15 days)
8. Advance payments from customers/ 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
deposits from dealers
9. Statutory Liabilities 1.98 8.67 24.64 43.26 67.88 82.73 104.79 49.92
10. Other Current Liabilities(specify items 9.65 16.44 32.53 51.26 76.00 90.99 113.18 58.46
as short borrowing, unsecured loans,
dividend payable, instalments of TL,
DPGs, Pub. Deposits,Debenture, etc.
11. TOTAL 11.63 25.11 57.17 94.52 143.88 173.72 217.97 108.37
( To agree with sub-total B of Form-III )

COMPUTATION OF MAXIMUM PERMISSIBLE BANK FINANCE FOR WORKING CAPITAL

FORM -V
Particulars 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30

1. TOTAL CURRENT ASSETS 465.27 500.69 552.41 662.51 852.36 1076.91 1374.73 971.72
2. Current Liabilities (2 to 9 of Form III) 11.63 25.11 57.17 94.52 143.88 173.72 217.97 108.37
(Other than bank borrowings)
3. Working Capital Gap (WCG) (1-2) 453.63 475.58 495.24 567.99 708.48 903.19 1156.76 863.34
4. Min. Stipulated Net Working Capital 25%
of total current assets other than Export
Receivables (as at 28(ii) of Form III ) 116.32 125.17 138.10 165.63 213.09 269.23 343.68 242.93

35 | P a g e
Shakers Appliances Private Limited Information Memorandum on Investment & Business Plan

5. Actual/projected net working capital

( 45 in Form III ) 453.63 475.58 495.24 567.99 708.48 903.19 1156.76 863.34
6. Item 3 minus item 4 337.32 350.41 357.14 402.36 495.39 633.96 813.08 620.41
7. Item 3 minus item 5 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
8. Maximum permissible Bank Finance
( Item 6 or 7 whichever is lower ) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
9. EXCESS BORROWINGS, IF ANY
REPRESENTING SHORT FALL IN NWC 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

FUND FLOW STATEMENT

FORM - VI
Particulars 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30

1. SOURCES
a) Net profit (after tax) 5.93 26.00 73.93 129.79 203.65 248.20 314.37 149.75
b) Depreciation & Amortisation 2.91 2.61 2.47 2.35 2.23 2.12 2.02 1.92
c) Increase in Capital & Quasi Capital 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50
d) Decrease in :
I) Fixed Assets 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
ii) Other Non-current Assets 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
e) Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
f) TOTAL 14.34 34.11 81.90 137.64 211.38 255.82 321.89 157.17
2. USES
a) Net Loss 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
b) Decrease in Term Liabilities 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(including Defferred Payment Liability) (723.38) (742.76) (681.13) (622.40) (581.60) (540.80) (500.00) -
c) Increase in :
I) Fixed Assets 110.43 110.43 110.43 110.43 110.43 110.43 110.43 110.43
ii) Other Non-current Assets 163.81 180.67 155.49 130.66 118.77 115.49 112.76 110.25
d) Dividend 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
e) Others 1.00 2.00 3.00 4.00 5.00 5.00 5.00 5.00
f) TOTAL (448.14) (449.66) (412.21) (377.31) (347.40) (309.88) (271.81) 225.68
3. LONG TERM SURPLUS 462.48 483.77 494.11 514.94 558.78 565.71 593.70 -68.51
4. Increase/decrease in current assets 465.27 500.69 552.41 662.51 852.36 1076.91 1374.73 971.72
(as per details given )
5. Increase/decrease in current Liabilities 11.63 25.11 57.17 94.52 143.88 173.72 217.97 108.37
other than Bank Borrowings
6. Increase/Decrease in working capital gap 453.63 475.58 495.24 567.99 708.48 903.19 1156.76 863.34
7. Net Surplus (+) Deficit (-) (3-6) 8.85 8.19 (1.13) (53.04) (149.70) (337.48) (563.06) (931.86)
8. Increase/decrease in Bank borrowings 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
INCREASE/DECREASE IN NET SALES

36 | P a g e