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Muskan Nagar - FM Assignment

1. The document outlines the projected financial requirements and profitability analysis for a proposed sports goods business over 5 years. 2. Key details include projected revenue of Rs. 10.8 crore in year 1 growing at 25% each year, costs such as cost of goods sold, employee expenses, rent, utilities and depreciation. 3. The analysis projects net profit each year, cash flows, repayment of a Rs. 2 crore loan over 4 years and calculates the proposed return on investment of 12%.

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Muskan Nagar
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23 views33 pages

Muskan Nagar - FM Assignment

1. The document outlines the projected financial requirements and profitability analysis for a proposed sports goods business over 5 years. 2. Key details include projected revenue of Rs. 10.8 crore in year 1 growing at 25% each year, costs such as cost of goods sold, employee expenses, rent, utilities and depreciation. 3. The analysis projects net profit each year, cash flows, repayment of a Rs. 2 crore loan over 4 years and calculates the proposed return on investment of 12%.

Uploaded by

Muskan Nagar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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1 Projected funds requirements (Rs)

3 Proposed Loan from the lender

3 Date of commencement

4 Revenue Streams- GST (5%) Implications not considered for simplicity


Type

sales of sports good


revenue goods

4 Cost
Particulars

COGS as %age of Revenue


COGS as %age of Repair
Employee Cost- Other than production
Number of employees -
Admin/ F&A/ HR
Housekeeping

Salary per Annum(Rs)


Admin/ F&A/ HR
Housekeeping

Other Expenses (Rs)


Rent
sales and promotion expense
administrative and other expenses
Electricity Bills and other utilities
Professional Fees

5 Break up of Project Cost

Equipment and Machinery


Furniture and Fixtures
Business Registration
Working Capital
Total
6 Tax to be provided at the rate of 30% p.a. in the year in which profit is reported

7 GST not considered for sake of simplicity

8 Net Current Assets as a %age of Revenue


4,275,000.00 Proposed ROI 12.00%

2,000,000.00

7/1/2024 0%

revenue per month in rs Growth


No. of Units sold
Y2 Y3 Y4
1,000,000 25% 25% 20%
200,000 10% 8% 8%

Amount (Rs) Growth


Y1
25%
10%

Y1 Y3 onwards
3 5
2 3

Y1 Y2 onwards
840,000.00 5%
420,000.00 8%

Y1 Y2 onwards
250,000.00 3%
200,000.00 2%
150,000.00 5%
100,000.00 5%
15,000.00 5%

Acquisition Cost (Rs) Depreciation


1,500,000.00 Useful life – 5 years, SLM,
750,000.00 Useful life – 3 years, SLM,
25,000.00
2,000,000.00
4,275,000.00
y1
0% 0% 0%
proposes repayment schedule

y2 y3 y4
20 20 60
DATE OF COMMENCEMENT 7/1/2024

Revenue
per month
sports good
Growth
annual sale

revenue goods per month


Growth
Annual sale
totAL
9 MONTHS
Y1 Y2 Y3
3/31/2025 3/31/2026 3/31/2027

1000000 1250000 1562500


25% 25%
9000000 15000000 18750000

200,000 220000 237600


10% 8%
1800000 2640000 2851200
10,800,000.00 17,640,000.00 21,601,200.00
Y4
3/30/2028

1875000
20%
22500000

256608
8%
3079296
25,579,296.00
Cost of operation Y1
3/31/2025
Revenue 10,800,000.00
COGS as %age of Revenue %age 25%
COGS as %age of Repair %age 10%
COGS Amount 3,780,000.00
Manpower Cost
a Number of employees -
Admin/ F&A/ HR no 3
Housekeeping no 2

b Salary per employee


Admin/ F&A/ HR Rs 840,000.00
Housekeeping Rs 420,000.00

Total
Employee Salary Growth
Admin/ F&A/ HR no
Housekeeping no

a*b Total Salary


Admin/ F&A/ HR Rs 2,520,000.00
Housekeeping Rs 840,000.00

Salary and compensation 3,360,000.00

Rent Rs 250,000.00
Growth %age
sales and promotion expense 200,000.00
Growth %age
administrative and other expenses 150,000.00
Growth %age
Electricity Bills and other utilities 100,000.00
Growth %age
Professional Fees 15,000.00
Growth %age
Total administrative Cost 715,000.00
Administrative +Manpower cost 4,075,000
Finance Cost 240,000.00
Depreciation 385,138.36
Y2 Y3 Y4
3/31/2026 3/31/2027 3/31/2028
17,640,000.00 21,601,200.00 25,579,296.00
25% 25% 25%
10% 10% 10%
6,174,000.00 7,560,420.00 8,952,753.60

3 5 5
2 3 3

F13*(1+G18)
882,000.00 926,100.00 972,405.00
453,600.00 489,888.00 529,079.04

5% 5% 5%
8% 8% 8%

2,646,000.00 4,630,500.00 4,862,025.00


907,200.00 1,469,664.00 1,587,237.12

3,553,200.00 6,100,164.00 6,449,262.12

257,500.00 265,225.00 273,181.75


3% 3% 3%
204,000.00 208,080.00 212,241.60
2% 2% 2%
157,500.00 165,375.00 173,643.75
5% 5% 5%
105,000.00 110,250.00 115,762.50
5% 5% 5%
15,750.00 16,537.50 17,364.38
5% 5% 5%
739,750.00 765,467.50 792,193.98
4,292,950 6,865,632 7,241,456
216,000.00 168,000.00 72,000.00
513,517.81 513,517.81 513,517.81
Project Cost
Business Registration
Equipment and Machinery
Furniture and Fixtures
Working Capital
Total

Projected funds requirements


Interest Before commencement
Total Project Cost Including Interest
Loan
Capital to be introduced
Proposed ROI

Interest Before commencement


Funds Disbursed
Date of Disbursement
12/1/2023
2/1/2024
Total

Allocation of Interest before commencement based on the utilisation of funds for the asset clas

Particulars
Equipment and Machinery
Furniture and Fixtures
Total

Capital to be introduced
Opening Capital
Closing Capital
25,000.00
1,500,000.00
750,000.00
2,000,000.00
4,275,000.00

4,275,000.00
114,575.34
4,389,575.34
2,000,000.00
2,389,575.34
12.00%

- 7/1/2024
Amount (Rs) Days ROI
750,000.00 213 12.00%
1,250,000.00 151 12.00%
2,000,000.00

ed on the utilisation of funds for the asset class


Interest before commencement
Acquisition cost allocated
1,250,000.00 52,520.55
750,000.00 62,054.79
2,000,000.00 114,575.34

Y1
3/31/2024 3/31/2025
2389575
0 2389575
2389575 2389575
Interest
52,520.55 In1
62,054.79 In2
114,575.34

Y2 Y3 Y4 Y5
3/31/2026 3/31/2027 3/30/2028 12/30/1899

2389575 2389575 2389575 2389575


2389575 2389575 2389575 2389575
Opening Balance Rs
Repayment %
Repayment Rs
Disbursement Rs
Closing Balance Rs
Proposed ROI %
Interest (average balance) Rs

DSCR
Net Profit for the year
Interest
Depreciation
Total

Debt
Repayments
Finance Cost
Total

DSCR
Average DSCR 9.85990265365

DSCR = Net operating income / Total debt service


Net operating income = Total revenue or profit - Operating expenses
Total debt service = Interest payments + Principal payments
3/31/2024 3/31/2025 3/31/2026
- 2,000,000.00 2,000,000.00
20%
- 400,000.00
2,000,000.00
2,000,000.00 2,000,000.00 1,600,000.00
12.00% 12.00%
240,000.00 216,000.00

2,294,861.64 6,443,532.19
240,000.00 216,000.00
385,138.36 513,517.81
2,920,000.00 7,173,050.00

- 400,000.00
240,000.00 216,000.00
240,000.00 616,000.00

12.17 11.64

ng expenses
3/31/2027 3/31/2028
1,600,000.00 1,200,000.00
20% 60%
400,000.00 1,200,000.00

1,200,000.00 -
12.00% 12.00%
168,000.00 72,000.00

6,493,630.69 6,159,697.95
168,000.00 72,000.00
513,517.81 513,517.81
7,175,148.50 6,745,215.76

400,000.00 1,200,000.00
168,000.00 72,000.00
568,000.00 1,272,000.00

12.63 5.30
Y1
7/1/2024 3/31/2025
Assets Acquired during the year
Equipment and Machinery Rs 1,500,000.00
Furniture and Fixtures Rs 750,000.00

Interest to be capitalised
Equipment and Machinery 52,520.55
Furniture and Fixtures 62,054.79

Assets Sold /disposed off during the year


Equipment and Machinery
Furniture and Fixtures

Book Value
Equipment and Machinery 1,552,520.55
Furniture and Fixtures 812,054.79

Total 2,364,575.34

Useful Life
Equipment and Machinery Years 5
Furniture and Fixtures Years 4

Depreciation
Equipment and Machinery SLM 20.00%
Furniture and Fixtures SLM 25.00%

Depreciation (9 MONTHS)
Equipment and Machinery Y1 232,878.08
Furniture and Fixtures Y1 152,260.27

Total 385,138.36

Equipment and Machinery 232,878.08


Furniture and Fixtures 152,260.27

Check - -
Accumulated Depreciation
Equipment and Machinery 232,878.08
Furniture and Fixtures 152,260.27

Total 385,138.36

WDV
Equipment and Machinery 1,319,642.47
Furniture and Fixtures 659,794.52

Total 1,979,436.99
Y2 Y3 Y4 Y5
3/31/2026 3/31/2027 3/31/2028 3/31/2029

1,552,520.55 1,552,520.55 1,552,520.55 1,552,520.55


812,054.79 812,054.79 812,054.79 812,054.79

2,364,575.34 2,364,575.34 2,364,575.34 2,364,575.34

5 5 5 5
4 4 4

20.00% 20.00% 20.00% 20.00%


25.00% 25.00% 25.00%

310,504.11 310,504.11 310,504.11 310,504.11


203,013.70 203,013.70 203,013.70 -
- -

513,517.81 513,517.81 513,517.81 310,504.11

310,504.11 310,504.11 310,504.11 310,504.11


203,013.70 203,013.70 203,013.70 -

- - -
543,382.19 853,886.30 1,164,390.41 1,474,894.52
355,273.97 558,287.67 761,301.37 761,301.37

898,656.16 1,412,173.97 1,925,691.78 2,236,195.89

1,009,138.36 698,634.25 388,130.14 77,626.03


456,780.82 253,767.12 50,753.42 50,753.42

1,465,919.18 952,401.37 438,883.56 128,379.45


Profit and Loss

Revenue
sports good
revenue goods
Total

Expenses
COGS
Salary and compensation
Rent
sales and promotion expense
administrative and other expenses
Electricity Bills and other utilities
Professional Fees
Finance Cost
Depreciation
Total

Net Profit before tax


One time Incorporation expenses
Tax paid
Net Profit
Opening Balance
add tax provided for the year
Less Tax Paid
Closing balance

EBIDTA
EBIDTA
3/31/2025 3/31/2026

9,000,000.00 15,000,000.00
1,800,000.00 2,640,000.00
10,800,000.00 17,640,000.00

3,780,000.00 6,174,000.00
3,360,000.00 3,553,200.00
250,000.00 257,500.00
200,000.00 204,000.00
150,000.00 157,500.00
100,000.00 105,000.00
15,000.00 15,750.00
240,000.00 216,000.00
385,138.36 513,517.81
8,480,138.36 11,196,467.81

2,319,861.64 6,443,532.19
25,000.00
- -
2,294,861.64 6,443,532.19
- -
- -

- -

2,945,000.00 7,173,050.00
3/31/2027 3/31/2028

18,750,000.00 22,500,000.00
2,851,200.00 3,079,296.00
21,601,200.00 25,579,296.00

7,560,420.00 8,952,753.60
6,100,164.00 6,449,262.12
265,225.00 273,181.75
208,080.00 212,241.60
165,375.00 173,643.75
110,250.00 115,762.50
16,537.50 17,364.38
168,000.00 72,000.00
513,517.81 513,517.81
15,107,569.31 16,779,727.50

6,493,630.69 8,799,568.50

- 2,639,870.55
6,493,630.69 6,159,697.95
- -
- 2,639,870.55
- - 2,639,870.55
- -

7,175,148.50 9,385,086.30

2,209,937.80
Balance Sheet
3/31/2024

Capital 2,389,575.34
Loan 2,000,000.00
Profit and Loss
Provision for taxation
Total Liabilities 4,389,575.34

Assets
PPE/ CWIP 2,364,575.34
Equipment and Machinery
Furniture and Fixtures
Computers
Net Current assets
Cash 2,000,000.00
Preliminary expenses 25,000.00
Total Assets 4,389,575.34
-
Y1 Y2 Y3
3/31/2025 3/31/2026 3/31/2027

2,389,575.34 2,389,575.34 2,389,575.34


2,000,000.00 1,600,000.00 1,200,000.00
2,294,861.64 8,738,393.84 15,232,024.53
- - -
6,684,436.99 12,727,969.18 18,821,599.87

1,979,436.99 1,465,919.18 952,401.37


1,319,642.47 1,009,138.36 698,634.25
659,794.52 456,780.82 253,767.12
- - -
- - -
4,705,000.00 11,262,050.00 17,869,198.50

6,684,436.99 12,727,969.18 18,821,599.87


- - -
Y4
3/31/2028

2,389,575.34
-
21,391,722.48
-
23,781,297.82

438,883.56
388,130.14
50,753.42
-
-
23,342,414.26

23,781,297.82
-
Cash Flow

Cash Flow from Operations


Net Profit before tax
Depreciation
Tax paid
Movement in current assets
Net Cash Flow from Operating activities

Cash Flow from Investing activities


Acquisition of Assets
Net Cash Flow from Investing activities

Cash Flow from Financing activities


Loan Repayment
Capital raised
Net Cash Flow from Financing activities
Net Cash Flow
Balance of Cash at the beginning of the year
Balance of Cash at the end of the year
Difference
3/31/2025 3/31/2026

2,319,862 6,443,532
385,138 513,518
- -
- -
2,705,000.00 6,957,050.00

- -
- -

- 400,000.00
-
- - 400,000.00
2,705,000.00 6,557,050.00
2,000,000.00 4,705,000.00
4,705,000.00 11,262,050.00
- -
3/31/2027 3/31/2028

6,493,631 8,799,568
513,518 513,518
- - 2,639,871
- -
7,007,148.50 6,673,215.76

- -
- -

- 400,000.00 - 1,200,000.00
- -
- 400,000.00 - 1,200,000.00
6,607,148.50 5,473,215.76
11,262,050.00 17,869,198.50
17,869,198.50 23,342,414.26
- -
Balooning Instalments
Loan Amount 2,000,000
Rate of Interest 12.5% 12.5% 12.5% 12.5%
Instalment 0% 20% 20% 60%
Opening Loan Balance 2,000,000.00 2,000,000.00 1,600,000.00 1,200,000.00
Repayment - 400,000.00 400,000.00 1,200,000.00
Closing Loan Balance 2,000,000.00 1,600,000.00 1,200,000.00 -
Interest(Average Balance 250,000.00 225,000.00 175,000.00 75,000.00
Total Outflow 250,000.00 625,000.00 575,000.00 1,275,000.00
Total Interest paid 725,000.00

Equal Instalments
Loan Amount 2,000,000
Rate of Interest 12.5% 12.5% 12.5% 12.5%
Instalment 25% 25% 25% 25%
Opening Loan Balance 2,000,000.00 1,666,666.67 1,333,333.33 1,000,000.00
Repayment 333,333.33 333,333.33 333,333.33 333,333.33
Closing Loan Balance 1,666,666.67 1,333,333.33 1,000,000.00 666,666.67
Interest(Average Balance 229,166.67 187,500.00 145,833.33 104,166.67
Total Outflow 562,500.00 520,833.33 479,166.67 437,500.00
Total Interest paid 666,666.67

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