ajji model final

7/28/2019 Ajji Model Final

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Snapshot

Profit & Loss

Balance Sheet

Cash Flow

Revenue Drivers

Direct Expenses

Year 1 represents 12 months of o

Financial

Inde

Currency is INR except whe

Time 0 represents the pre-oper


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erations after commissioning

Model

re otherwise mentioned

ational construction perod.


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Snapshot (INR Cr) Year 1 Year 2 Year 3 Year 4

Revenue 1.4 5.9 10.1 16.3

EBITDA -0.2 1.2 2.7 4.7

PAT -0.1 0.8 1.9 3.3

PAT % -8% 14% 18% 20%

Total Funds Required INR Cr

Snapshot

0.49

1.4

5.9

10.1

16.3

-0.2

1.2

2.7

4.7

-0.1

0.8

1.9

3.3

-2

0

2

4

6

8

10

12

14

16

18

Year 1 Year 2 Year 3 Year 4

Rs.

Cr.(Revenue&

EBITDA

)

Revenue EBITDA PAT


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-0.5

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

Rs.

Cr.(PAT)


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Revenue Streams (INR) Time 0 Year 1

Revenue from Product basket (Premium) 1,452,500 14,060,200

Revenue from product basket (Economy Segment) 0 0

Annual Revenue 1,452,500 14,060,200

Product Basket (Premium) Time 0 Year 1

Number of product 1 (Pink sink) 150 330

Number of product 2 (Square) 40 88

Number of product 3 (drop) 10 22

Number of product 4 (circle) 10 22

Price per product 1 25,000.00 27,500.00




Total Basket Revenue 1,452,500.00 14,060,200.00

Annual Revenue 1,452,500 14,060,200

Product Basket (Economy segment) Time 0 Year 1

Number of designs 0 0

Sale Numbers per design 0.00 0.00

Average price per design 0.00 0.00

Revenue 0.00 0.00

Annual Revenue 0 0

Revenue Drivers


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Year 2 Year 3 Year 4

34,025,684 41,171,078 49,817,004

25,000,000 59,400,000 113,256,000

59,025,684 100,571,078 163,073,004

Year 2 Year 3 Year 4 Product Multiplier Basket multiplier

726 799 878 1.1 2

194 213 234

48 53 59

48 53 59

30,250.00 33,275.00 36,602.50

32,065.00 35,271.50 38,798.65

60,500.00 66,550.00 73,205.00

60,500.00 66,550.00 73,205.00

34,025,684.00 41,171,077.64 49,817,003.94

34,025,684 41,171,078 49,817,004

Year 2 Year 3 Year 4 Product Multiplier Basket Multiplier

25 45 65 1

100.00 120.00 144.00

10,000.00 11,000.00 12,100.00

25,000,000.00 59,400,000.00 113,256,000.00

25,000,000 59,400,000 113,256,000


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Inflation Attrition rate Products per basket

1.1 0.5 4


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Direct Expenses (INR) Time 0 Year 1

Unskilled workers 2 4

Cost per unskilledworker 120,000 132,000

Premium

Labour Cost (Direct) 240,000 580,800

Skeleton cost (Premium) 1,050,000 2,310,000

Upholstery Raw material (Premium) 315,000 693,000

Economy

Labour Cost (Direct)* 0 0

Skeleton cost (Economy) 0 0

Upholstery Raw material (Economy) 0 0

Power 3,600 7,920

Repair and Maintenance 14,525 140,602

Distribution Cost 21,000 46,200

Annual Direct Expenses 1,644,125 3,778,522

Indirect Expenses Time 0 Year 1

# of Designers 0 2

Cost per designers 600,000 660,000

Number of Designs (Premium) 8 8

Number of Designs (Economy) 0 0

Concept Generation Costs (Dyes+Prototypes) 200,000 220,000

Number of workshops 1 1

Number of supervisor 1 1Number of sales executives 2 5

Cost per sales executives 600,000 660,000

Salaries

CEO 0 0

Operating Expenses


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CA 600,000 660,000

Designers 0 1,320,000

Rent 120,000 132,000

Supervisors 300,000 330,000

Sales Executive s 1,200,000 3,300,000

Innovation Lab & Office space 875000 3300000

Advertising Expenditure & Misc. 0 1,000,000

Total One-Time design/concept generation cost 1,600,000 1,760,000

Total 4,695,000 11,802,000

Total Costs (Direct + Indirect) 6,339,125 15,580,522


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10 21 47 Per Unit cost

145,200 159,720 175,692 5000 Skeleton

1500 Upholstery

1,405,536 3,401,397 8,231,381 17.1428571 Power

5,082,000 5,590,200 6,149,220

1,524,600 1,677,060 1,844,766

1,405,536 3,401,397 8,231,381 1% of Revenues *New Assembly line fo

9,375,000 20,250,000 35,100,000 100.00 per product

2,812,500 6,075,000 10,530,000 0.75 Ratio of RM costs of economy to premium

60,281 111,738 181,540

590,257 1,005,711 1,630,730

351,640 651,804 1,058,984

22,607,350 42,164,307 72,958,003


3 4 5

726,000 798,600 878,460

8 8 8

25 20 20 200000 per design

242,000 266,200 292,820

2 2 4

2 6 1510 15 20

726,000 798,600 878,460

500,000 1,000,000 1,200,000


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726,000 798,600 878,460

2,178,000 3,194,400 4,392,300

264,000 264,000 528,000

660,000 1,980,000 4,950,000

7,260,000 11,979,000 17,569,200

3630000 3993000 4392300

1,100,000 1,210,000 1,331,000

7,986,000 7,453,600 8,198,960

24,304,000 31,872,600 43,440,220

46,911,350 74,036,907 116,398,223


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economy (similar capacity)


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Projected Cash Flow (INR) Time 0 Year 1 Year 2 Year 3

Sources of Funds

-PBT -4,886,625 -1,520,322 12,114,334 26,534,171

-Working Capital Loan 290,500 2,812,040 11,805,137 20,114,216

Total -4,596,125 1,291,718 23,919,471 46,648,386

Application of Funds

-Increase in Working Capital 290,500 2,521,540 8,993,097 8,309,079

-Income Tax 0 -456,097 3,634,300 7,960,251

Total 290,500 2,065,443 12,627,397 16,269,330

Surplus/ (Deficit) -4,886,625 -773,725 11,292,074 30,379,056

Equity Funding 4,886,625 0 0 0Cumulative Cash 0 -773,725 10,518,348 40,897,405

IRR Calcs. (INR) Time 0 Year 1 Year 2 Year 3

Cash Flow to Investors 0 0 564,604 1,518,953

Investment 4,886,625 0 0 0

Net Cash Flow -4,886,625 0 564,604 1,518,953

Investors Stake 5%

IRR 37.9%

NPV 6,778,177

Cash Flow


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Year 4

46,674,781

32,614,601

79,289,382

12,500,385

14,002,434

26,502,820

52,786,562

093,683,967

Year 4 Year 5

2,639,328 16,336,173

0

2,639,328 16,336,173


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Projected P&L (INR) Time 0 Year 1 Year 2

Income

Revenue from Product basket (Premium) 1,452,500 14,060,200 34,025,684

Revenue from product basket (Economy Segment) 0 0 25,000,000

Total Income 1,452,500 14,060,200 59,025,684

Direct Expenses

Annual Direct Expenses 1,644,125 3,778,522 22,607,350

Total Direct Expenses 1,644,125 3,778,522 22,607,350

Gross Margin -191,625 10,281,678 36,418,334

Indirect Expenses 4,695,000 11,802,000 24,304,000

EBITDA -4,886,625 -1,520,322 12,114,334

PBT -4,886,625 -1,520,322 12,114,334

Tax 0 -456,097 3,634,300

PAT -4,886,625 -1,064,225 8,480,034

Margins Time 0 Year 1 Year 2

Gross Margin 73.1% 61.7%

EBITDA Margin -10.8% 20.5%

PBT Margin -10.8% 20.5%

PAT Margin -7.6% 14.4%

Profit & Loss


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Year 3 Year 4

41,171,078 49,817,004

59,400,000 113,256,000

100,571,078 163,073,004

42,164,307 72,958,003

42,164,307 72,958,003

58,406,771 90,115,001

31,872,600 43,440,220

26,534,171 46,674,781

26,534,171 46,674,781

7,960,251 14,002,434 30% of PBT

18,573,920 32,672,347

Year 3 Year 4

58.1% 55.3%

26.4% 28.6%

26.4% 28.6%

18.5% 20.0%


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Projected Balance Sheet (INR) Time 0 Year 1 Year 2 Year 3

Sources of Funds

-Equity Share Capital 4,886,625 0 0 0

-Reserves and Surplus -4,886,625 -1,064,225 7,415,808 25,989,728

Total Equity 0 -1,064,225 7,415,808 25,989,728

-Long Term Loans

-Working Capital Loans (Equity funded) 290,500 3,102,540 14,907,677 35,021,892

Total Debt 290,500 3,102,540 14,907,677 35,021,892

Total Liabilities 290,500 2,038,315 22,323,485 61,011,620

Applications of Funds

Working capital 290,500 2,812,040 11,805,137 20,114,216

Cash /Bank Balances 0 -773,725 10,518,348 40,897,405Total Assets 290,500 2,038,315 22,323,485 61,011,620

Check 0 0 0 0

Balance Sheet


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WC/Sales 0.2

The WC loan is currently not repaid as it is asumed to be either fun

Year 4

0

58,662,075

58,662,075

67,636,493

67,636,493

126,298,568

32,614,601

93,683,967126,298,568

0


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ed from internal sources or equity funding


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Revenue-side Assumptions

Deposit for Rent 1000000 Product Multiplier

Rent per Year 3000000 Basket Multiplier

Cost for Prototyping/Design 100000 Attrition rate

Die/ Design 100000 Products per Basket

No. of unskilled workers scale up in proportion to the no. of pieces New Economy product line launce

Skeleton manufacturing outsourced to reliable manufacturer Average revenue/ basket consider

Upholstry workers trained inhouse

Ratio of supervisors to worke 1:10

Innovation lab cost covers the training costs

Industry Name ounts Receivable/S Inventory/Sales Accounts Payable/Sales

Furn/Home Furnishings 11.45% 14.01% 9.23%

* http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/wcdata.ht

Cost-side Assumptions


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1.2 Inflation rate 10%

2.5

0.5

4

d after 2 years

ed in accordance with the Year 0 product basket

Cash/Sales Non-cash Working Capital/Sales Working capital/ Sales

8.24% 13.45% 21.69%

l

General Assumptions

ajji model final

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