financial model_hotel industry

8/8/2019 Financial Model_Hotel Industry

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SUMMARY OF INVESTMENT ANALYSIS

xyz HOTEL

Hotel name, location : Radisson Plaza, Udaipur

Year of opening : Jul-08

No of Rooms

Present 164

To be added 81

Total 245by 2009

Stable occupany : 80% In Year 2011 - 12

ARR-room in opening year : 14000 Rs.

ARR-Suites in opening year : 16000 Rs.

Average yearly increase in room rent : 5%

F&B as % of room revenues : 26% Average

Total investment : 204.33 Rs. in Crores

Cumulative revenues (2009-2017) : 1366.98 Rs. in Crores

Cumulative PBT (2009-2017) : 458.18 Rs. in Crores

PBT % : 34%

Profit after tax (2009-2017) : 313.37 Rs. in Crores

PAT % : 23%

Internal Rate of Return : 30.6%

RoI for 9 year period (2009-2017) : 21.3%

Total cash accumulation (2009-17) : 391.49 Rs. in Crores

Cash return on equity : 33%

Total management fee to be paid (2009-17) : 150.80 incl franchise, incentive, mgmt fee

as % of revenues : 11%

Returns to Investors

2010 - 11 (2.5 years) 175%

2011 - 12 (3.5 years) 210%



COST OF THE PROJECT AND MEANS OF FINANCE (Rs. in Lakhs)

Sr. No. Particulars Expansion Total

I COST OF THE PROJECT

1 Land (incl. Development Cost) 3512.00 - 3512.002 Building (Hotel ) 2510.00 1060.00 3570.003 Plant & Equipment 3850.00 2150.00 6000.004 Misc. Fixed Assets 2540.00 2700.00 5240.005 Pre-operative Expenses 1617.25 90.00 1707.25

6 Preliminary Expenses 403.75 - 403.75

Total 14433.00 6000.00 20433.00

II MEANS OF FINANCE

1 Promoters' Equity 1,500.00 - 1,500.002 Share Premium 3,500.00 - 3,500.003 Quasi Equity of Promoters 2,083.00 - 2,083.004 Term Loans from Banks 7,350.00 - 7,350.005 Private Equity Funding - 6,000.00 6,000.00

Total 14,433.00 6,000.00 20,433.00

Debt Equity Ratio: 51:49 % - 36:64 %

Project under

Implementation



Profit & Loss Account

Details 0

2008 - 09 2009 - 10 2010 - 11 2011 - 12 2012 - 13 2013 - 14

INCOME

Sales 5,485.14 12,549.81 13,980.13 15,340.70 16,135.48 17,224.48

EXPENDITURE

Cost of Services 1,932.56 3,841.46 4,973.74 5,641.89 6,203.37 6,726.38

Admin. Overheads 86.50 99.48 114.40 131.56 151.29 167.93

Selling & Dist Overheads 966.99 2,391.22 2,609.77 2,882.74 2,995.47 3,146.50

Total Expenditure 2,986.04 6,332.15 7,697.90 8,656.18 9,350.13 10,040.82

EBIDTA 2,499.10 6,217.66 6,282.23 6,684.52 6,785.35 7,183.66

Depreciation 526.73 827.58 827.58 827.58 872.62 918.34

PBIT 1,972.37 5,390.08 5,454.65 5,856.94 5,912.73 6,265.32

Interest on term loan 825.00 814.54 774.89 694.45 614.02 533.58

Interest Subsidy rebate 41.25 40.73 38.74 34.72 30.70

Profit Before Tax 1,147.37 4,616.79 4,720.48 5,201.23 5,333.44 5,762.45

Tax 96.55 1,307.13 1,434.09 1,655.43 1,722.48 1,887.71

Profit After Tax 1,050.82 3,309.66 3,286.40 3,545.80 3,610.96 3,874.74

EBDITA % 46% 50% 45% 44% 42% 42%

PAT % 19% 26% 24% 23% 22% 22%

NOTES:-

1) 164 rooms will be operational from 31st July, 2008

2) Repair & Maintenance estimated @ 5% of the cost of the building & Machinery is charged from 2010-11 onwards

From 2012-13 onwards repairs is taken @ 10%Therefore, the profibitability in these years is less as compared to 2008-09 and 2009-10

3) The Promoters have substantially funded the project out of their own funds, which has resulted into a better debt equity ratio.

Although the present planning of total rooms is at 245 (existing 164 + addl. 81 in 2009), the promoters have planned to increase the total rooms to 3

making use of the attractive cash accruals over the next 3-5 years, as well as use a part of it for other Hotels planned in the vicinity, for which land is



0

Balance Sheet

Particulars FINANCIAL YEAR ENDED 31ST MARCH

2007-08 2008 - 09 2009 - 10 2010 - 11 2011 - 12 2012 - 13 2013 - 14

Share Capital 1,500.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00

Share Premium 3,500.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00

Quasi Capital 2,083.00 2,083.00 1,333.00 833.00 583.00 333.00 -

Reserves & Surplus - 1,050.82 4,360.48 7,401.56 10,702.04 14,067.68 17,574.44 2

Networth (x) 7,083.00 14,133.82 16,693.48 19,234.56 22,285.04 25,400.68 28,574.44 3

Secured Loan from banks 7,350.00 7,283.28 7,156.04 6,441.04 5,726.04 5,011.04 4,296.04

CAPITAL EMPLOYED (x) 14,433.00 21,417.10 23,849.52 25,675.60 28,011.08 30,411.72 32,870.48 3

Fixed Assets

Gross Block 14,029.25 20,433.00 20,433.00 20,433.00 20,433.00 21,433.00 22,448.00 2

Depreciation - 526.73 1,354.31 2,181.89 3,009.47 3,882.09 4,800.43

Net Block (a) 14,029.25 19,906.28 19,078.70 18,251.11 17,423.53 17,550.91 17,647.58 1

Current Assets (b) 403.75 1,524.27 4,795.97 7,452.52 10,616.78 12,892.27 15,259.35 1

Inventory - 362.35 720.27 932.58 1,057.85 1,163.13 1,261.20

Debtors - 228.55 522.91 582.51 639.20 672.31 717.69

Advance for Capital Goods - - - 1,000.00 1,015.00 985.00

Cash & Bank Balance 403.75 933.37 3,552.79 5,937.44 7,919.73 10,041.83 12,295.47 1

Less: Current Liabilities(c) - 13.45 25.15 28.04 29.24 31.46 36.45 Sundry Creditors - 13.45 25.15 28.04 29.24 31.46 36.45

Net Current Assets d (b-c) 403.75 1,510.82 4,770.82 7,424.48 10,587.54 12,860.81 15,222.90 1

Preliminary Expenses not w/off

CAPITAL DEPLOYED(a+d) 14,433.00 21,417.10 23,849.52 25,675.60 28,011.08 30,411.72 32,870.48 3

- - - - - - -

CURRENT RATIO

TOTAL CURRENT ASSETS(A) 403.75 1,524.27 4,795.97 7,452.52 10,616.78 12,892.27 15,259.35 1

CURRENT LIABILITIES

Sundry Creditors - 13.45 25.15 28.04 29.24 31.46 36.45

Loan Installments - 66.72 127.24 715.00 715.00 715.00 715.00

TOTAL (B) - 80.17 152.39 743.04 744.24 746.46 751.45

CURRENT RATIO (A / B) #DIV/0! 19.01 31.47 10.03 14.27 17.27 20.31



0

Cash Flow Statement

Particulars FINANCIAL YEAR ENDED 31ST MA

2007 - 08 2008 - 09 2009 - 10 2010 - 11 2011 - 12 2012 -

Inflows:

Net Profit After Tax - 1,050.82 3,309.66 3,286.40 3,545.80 3,610.

Depreciation - 526.73 827.58 827.58 827.58 872.

Decrease in CWIP - - - - -

Increase in Capital 1,500.00 500.00 - - -

Increase in res. (Share Premium) 3,500.00 5,500.00

Increase in Capital Quazi 2,083.00 -

Increase in Loans 7,350.00 - - - Increase in Working Capital - - - - -

Increase in Current Liabilities - 13.45 11.70 2.89 1.20 2.

TOTAL INFLOWS: 14,433.00 7,590.99 4,148.94 4,116.87 4,374.58 4,485.

Outflows:

Increase in Fixed Assets 14,029.25 6,403.75

Capital Work In Progress - - - -

Advance for capital goods - - - 1,000.00 1,015.

Preliminary expenses - - - -

Decrease in Loans 66.72 127.24 715.00 715.00 715.

Increase in Current Assets - 590.90 652.28 271.90 181.97 138.

Dividend Payment (incl. DDT) 245.32 245.32 245.

Decrease in Quasi Capital 750.00 500.00 250.00 250.

TOTAL OUTFLOWS: 14,029.25 7,061.37 1,529.52 1,732.22 2,392.29 2,363.

Opening Cash Balance - 403.75 933.37 3,552.79 5,937.44 7,919.

Excess/Deficit 403.75 529.62 2 ,619.42 2,384.65 1,982.30 2,122.

Closing Cash Balance 403.75 933.37 3,552.79 5,937.44 7,919.73 10,041.



26% 60

0

#VALUE!

Calculation of return on investment by a VC at different valuation for 26% stake in equity of the company

Direct Income Appropriations i.e. PAT/cash accruals to Equity Investment

(A) Equity Investment of Rs. 60 Crores for 26% stake.

1) PAT Basis

2008 - 09 2009 - 10 2010 - 11 2011 - 12 2012 - 13 2013 - 14 2014 - 15 2015 - 16 2016 - 17

PAT 1050.82 3309.66 3286.40 3545.80 3610.96 3874.74 4040.31 4202.59 4415

26% of PAT 273.21 860.51 854.46 921.91 938.85 1007.43 1050.48 1092.67 1148

% of Return 4.55 14.34 14.24 15.37 15.65 16.79 17.51 18.21 19

2) Cash Accural Basis

2008 - 09 2009 - 10 2010 - 11 2011 - 12 2012 - 13 2013 - 14 2014 - 15 2015 - 16 2016 - 17

PAT 1050.82 3309.66 3286.40 3545.80 3610.96 3874.74 4040.31 4202.59 4415

Depreciation 526.73 827.58 827.58 827.58 872.62 918.34 962.70 1005.49 1043

Cash Accurals 1577.55 4137.24 4113.98 4373.38 4483.58 4793.07 5003.01 5208.08 5459

26% of PAT 410.16 1075.68 1069.63 1137.08 1165.73 1246.20 1300.78 1354.10 1419% of Return 6.84 17.93 17.83 18.95 19.43 20.77 21.68 22.57 23

(B) Equity Investment of Rs. 40 Crores for 26% stake.

1) PAT Basis

2008 - 09 2009 - 10 2010 - 11 2011 - 12 2012 - 13 2013 - 14 2014 - 15 2015 - 16 2016 - 17

PAT 1050.82 3309.66 3286.40 3545.80 3610.96 3874.74 4040.31 4202.59 4415

26% of PAT 273.21 860.51 854.46 921.91 938.85 1007.43 1050.48 1092.67 1148

% of Return 6.83 21.51 21.36 23.05 23.47 25.19 26.26 27.32 28

2) Cash Accural Basis

2008 - 09 2009 - 10 2010 - 11 2011 - 12 2012 - 13 2013 - 14 2014 - 15 2015 - 16 2016 - 17

PAT 1050.82 3309.66 3286.40 3545.80 3610.96 3874.74 4040.31 4202.59 4415

Depreciation 526.73 827.58 827.58 827.58 872.62 918.34 962.70 1005.49 1043

Cash Accurals 1577.55 4137.24 4113.98 4373.38 4483.58 4793.07 5003.01 5208.08 5459

26% of PAT 410.16 1075.68 1069.63 1137.08 1165.73 1246.20 1300.78 1354.10 1419

% of Return 10.25 26.89 26.74 28.43 29.14 31.15 32.52 33.85 35

2008-2009- Hotel operational only for eight months with 164 rooms

2009- onwards - Hotel opeartional with 164 + 81 = 245

2010-11 onwards- repayment of TL & provision made for repairs & maintenance, in progression of 5% p.a. (1st year), 7% pa.(2nd year) & 10% p

PAT returns, if calcuated from the Hotel's full operations, effective 2009 onwards, the average for 8 years

On Rs. 60 Crores will be 16.40%on Rs. 40 will be 24.61%

AND

On Cash Accruals the numbers will be -

for Rs. 60 Crores- 20.35%

For Rs. 40 Crores- 30.53%



0

0

Valuation on earning basis as Company is going to get listed

2008 - 09 2009 - 10 2010 - 11 2011 - 12 2012 - 13 2013 - 14 2014 - 15 2015 - 16 2016 - 17 Avg for

PAT (Rs in lacs) 1050.82 3309.66 3286.40 3545.80 3610.96 3874.74 4040.31 4202.59 4415.66

No of Shares (in lacs) 200.00 200.00 200.00 200.00 200.00 200.00 200.00 200.00 200.00

EPS (in Rs) 5.25 16.55 16.43 17.73 18.05 19.37 20.20 21.01 22.08

(in Rs) 52.54 165.48 164.32 177.29 180.55 193.74 202.02 210.13 220.78

Value of VC's Share (Rs in lacs) 2627.05 8274.14 8216.00 8864.50 9027.40 9686.84 10100.77 10506.47 11039.15

based on Pe of 10valuation is



0

SNAPSHOT

FINANCIAL YEAR ENDED 31ST MARCH

Particulars 2008 - 09 2009 - 10 2010 - 11 2011 - 12 2012 - 13 2013 - 14 2014 - 15 20

Revenue 5,485.14 12,549.81 13,980.13 15,340.70 16,135.48 17,224.48 17,913.01 18Expenditure 2,986.04 6,332.15 7,697.90 8,656.18 9,350.13 10,040.82 10,480.62 10

PBDIT 2,499.10 6,217.66 6,282.23 6,684.52 6,785.35 7,183.66 7,432.39 7

Depreciation 526.73 827.58 827.58 827.58 872.62 918.34 962.70 1

1,972.37 5,390.08 5,454.65 5,856.94 5,912.73 6,265.32 6,469.69 6

nterest on Term Loan # 825.00 773.29 734.16 655.71 579.29 502.88 426.46

1,147.37 4,616.79 4,720.48 5,201.23 5,333.44 5,762.45 6,043.23 6

Taxes 96.55 1,307.13 1,434.09 1,655.43 1,722.48 1,887.71 2,002.92 2

NPAT 1,050.82 3,309.66 3,286.40 3,545.80 3,610.96 3,874.74 4,040.31 4

Dividend Payments - - 245.32 245.32 245.32 367.98 367.98

Cash Accurals 1,577.55 4,137.24 3,868.66 4,128.06 4,238.26 4,425.09 4,635.03 4

Repayment of Term Loan 66.72 127.24 715.00 715.00 715.00 715.00 715.00

Networth 14,133.82 16,693.48 19,234.56 22,285.04 25,400.68 28,574.44 32,246.76 36

Secured Loans 7,283.28 7,156.04 6,441.04 5,726.04 5,011.04 4,296.04 3,581.04 2

Debt equity Ratio (%) 34:66% 30:70% 26:74% 22:78% 19:81% 15:85% 12:88% 9:

DSCR - - 3.28 3.60 3.84 4.27 4.67 5

Avg. DSCR 4.36

Net Margins (NP/Gross Revenue) 19% 26% 24% 23% 22% 22% 23% 2

Interest on Term Loan is taken after incl. rebate i.e. Interest Subsidy



f&b to room revenue 35.92% 26.17% 25.94% 24.15%

ROCKWOOD HOTELS & R

REVENUE ESTIMATE

Details FINANCI

2008 - 09 2009 - 10 2010 - 11 2011 - 12

TOTAL REVENUE 548,514,000 1,254,981,325 1,398,012,506 1,534,070,107

Room Rent 359,424,000 922,329,450 1,037,620,631 1,162,135,107

Standard Rooms 174,720,000 604,691,850 680,278,331 761,911,731

Suits 9,984,000 17,169,600 19,315,800 21,633,696

Club rooms 87,360,000 150,234,000 169,013,250 189,294,840

Super Deluxe rooms 87,360,000 150,234,000 169,013,250 189,294,840

Total Room Revenue 359,424,000 922,329,450 1,037,620,631 1,162,135,107

SPA

Spa Revenue 60,000,000 91,250,000 91,250,000 91,250,000

F&B Revenue 129,090,000 241,401,875 269,141,875 280,685,000

Restaurant 17,010,000 40,651,875 40,651,875 44,347,500

Lunch 5,040,000 12,045,000 12,045,000 13,140,000

Dinner 7,560,000 18,067,500 18,067,500 19,710,000

Snacks 1,890,000 4,516,875 4,516,875 4,927,500

Breakfast 2,520,000 6,022,500 6,022,500 6,570,000

Restaurant Revenue 17,010,000 40,651,875 40,651,875 44,347,500

Bar 8,400,000 20,075,000 23,725,000 25,550,000

Lunch 1,680,000 4,015,000 4,745,000 5,110,000

Dinner 2,520,000 6,022,500 7,117,500 7,665,000

Service/Other income 4,200,000 10,037,500 11,862,500 12,775,000

Bar Revenue 8,400,000 20,075,000 23,725,000 25,550,000

Party Hall 103,680,000 180,675,000 204,765,000 210,787,500



ASSUMPTION SHEET

Details Operational Period

2007-08 2008 - 09 2009 - 10 2010 - 11 2011 - 12 2012 - 13 2013 - 1

No. of working Days 240 365 365 365 365 36

Standard rooms 80 161 161 161 161 16

Suites 4 4 4 4 4Club Rooms 40 40 40 40 40 4

Super Deluxe Rooms 40 40 40 40 40 4

Total No. of Rooms - 164 245 245 245 245 24

Installed Occupancy for Standard Rooms - 19200 58765 58765 58765 58765 5876

Installed Occupancy for Suites - 960 1460 1460 1460 1460 146

Installed Occupancy for Club Rooms 9600 14600 14600 14600 14600 1460

Installed Occupancy for Super Deluxe Rooms 9600 14600 14600 14600 14600 1460

Total Occupancy - 39360 89425 89425 89425 89425 8942

Assumed Capacity Utilisation - 65% 70% 75% 80% 80% 80

-

Occupancy for Standard Rooms 12480 41136 44074 47012 47012 4701

Occupancy for Suites 624 1022 1095 1168 1168 116

Occupancy for Club Rooms 6240 10220 10950 11680 11680 1168

Occupancy for Super Deluxe Rooms 6240 10220 10950 11680 11680 1168

Total Occupancy of all the rooms 25584 62598 67069 71540 71540 7154

Tariff Structure

For Std. rooms Rooms(Rs.) 14000 14700 15435 16207 17017 1786

For Suite /(AppartmentsRs.) 16000 16800 17640 18522 19448 2042

For Club Rooms 14000 14700 15435 16207 17017 1786

For Super Deluxe Rooms 14000 14700 15435 16207 17017 1786

SPA

No of persons 50 50 50 50 50 5

Occupancy of the SPA (no of persons) 12000 18250 18250 18250 18250 1825

Spa revenue per head (rs.) 5000 5000 5000 5000 5000 500



ASSUMPTION SHEET

Details Operational Period

2007-08 2008 - 09 2009 - 10 2010 - 11 2011 - 12 2012 - 13 2013 - 1

Restaurant

Capacity( seats) - 150 150 150 150 150 15

Capacity Utilisation in % - 35% 55% 55% 60% 62% 70%

Lunch per head (Rs.) - 400 400 400 400 400 40

Dinner per head ( Rs.) - 600 600 600 600 600 60

Snacks per head (Rs.) - 150 150 150 150 150 15Breakfast per head (Rs.) - 200 200 200 200 200 20

Bar

Capacity- no. of persons - 50 50 50 50 50 5

Capacity Utilisation in % - 35% 55% 65% 70% 72% 82%

Lunch per head (Rs.) - 400 400 400 400 400 40

Dinner per head ( Rs.) - 600 600 600 600 600 60

Bar/Drinks income per head ( Rs.) - 1000 1000 1000 1000 1000 100

Party Hall

Capacity- no of persons that can be - 600 600 600 600 600 60

accomodated at any one time

Actual Capacity of the Hall 960 990 1020 1050 1050 105

Capacity Utilisation days in % - 45% 50% 55% 55% 60% 70%

Rate per head (Rs.) - 1000 1000 1000 1000 1000 100



COST OF SERVICES

Details FINANCIAL YEAR ENDED 31ST MARCH

2007-08 2008 - 09 2009 - 10 2010 - 11 2011 - 12

TOTAL COST OF SERVICE

Cost of Consumables 64,545,000 120,700,938 134,570,938 140,342,500

Utilities - 56,552,400 129,563,320 143,866,438 157,841,761

- 1,701,000 4,065,188 4,065,188 4,434,750

- 54,851,400 125,498,133 139,801,251 153,407,011

Repair & Maintenance - 67,278,465 94,710,839

.

Room Maintenance Costs 35,942,400 92,232,945 103,762,063 116,213,511

Salaries & Wages - 36,216,000 41,648,400 47,895,660 55,080,009

Total Cost of Service - 193,255,800 384,145,603 497,373,563 564,188,619

Estimated at 50% of the earnings fromRestaurant, Bar, Food & Beveragesconsumed at Banquet Hall & Boardroom

Fuel - LPG & HSD estimated @10% of restaurant sales

Power- Estimated @10% of the TotalRevenue

Estimated @ 15% of the cost of theBuilding, Machinery, Furniture, sanitaryfittings, crockery uniformly beginning thesecond year.

Includes linen washing, dry cleaning,ironing, change of cosmetics andtoileteries, pest control etc. estimated @10% of the Room rent receipts.

Direct and indirect salaries payable tothe staff



COST OF SERVICES

Details FINANCIAL YEAR ENDED 31ST MARCH

2007-08 2008 - 09 2009 - 10 2010 - 11 2011 - 12

Commissions & Discounts - 17,971,200 46,116,473 51,881,032 58,106,755

Advertisement - 17,971,200 46,116,473 51,881,032 58,106,75

Total Selling & Dist. Exp. - 35,942,400 92,232,945 103,762,063 116,213,511

Administrative Expenses - 8,650,000 9,947,500 11,439,625 13,155,569

Total Administrative Exp. - 8,650,000 9,947,500 11,439,625 13,155,569

Payment to Raddissons:

Gross Room Rent 359,424,000 922,329,450 1,037,620,631 1,162,135,107

1) Royalty @ 3 % 10,782,720 27,669,884 31,128,619 34,864,053

2) Marketing Fees @ 2.5 % 8,985,600 23,058,236 25,940,516 29,053,378

3) Reservation fee of @ 1% 3,594,240 9,223,295 10,376,206 11,621,351

4) Third Party Reservation

@ $4.10 per reservation 0 0 0 0

Payment to Raddissons 23,362,560 59,951,414 67,445,341 75,538,782

Payment to Banyan Tree Spa :

Spa Revenue 60,000,000 91,250,000 91,250,000 91,250,0001) Basic Mgt Fee

7% of spa revenue 4,200,000 6,387,500 6,387,500 6,387,500

2) Incentive Fee

10% of Gross Operating Profit 29,393,560 77,813,012 80,644,121 87,396,781

3) Furn. Fittings & equip. Contb. 1,800,000 2,737,500 2,737,500 2,737,500

3% of Spa Revenue

4) Technical asst.

US$ 50000 (US$1= Rs 40) 2,000,000

Payment to Banyan Tree Spa : 37,393,560 86,938,012 89,769,121 96,521,781

Payable to travel agents and other booking agents and payable to

Raddisons estimated @ 5% of theRoom Rent.

Estimated @5% of the room rent tocover Brochures, meetings,conferences, Media, Travel Agent etc.



Term Loan Repayment Schedule

Quarter Balance Principal Interest @ Balance Principal Intere

Outstanding Repayment 11.25% Outstanding Repayment 11.2

Rs. 5750 Lakhs Loan Rs. 1600 Lakhs Loan

1st 5,750.00 - 161.72 1,600.00

2008-09 2nd 5,750.00 - 161.72 1,600.00 22.24

3rd 5,750.00 - 161.72 1,577.76 22.24

4th 5,750.00 - 161.72 1,555.52 22.24

5th 5,750.00 - 161.72 1,533.28 22.24

2009-10 6th 5,750.00 - 161.72 1,511.04 35.00

7th 5,750.00 - 161.72 1,476.04 35.00

8th 5,750.00 - 161.72 1,441.04 35.00

9th 5,750.00 143.75 161.72 1,406.04 35.00

2010-11 10th 5,606.25 143.75 157.68 1,371.04 35.00

11th 5,462.50 143.75 153.63 1,336.04 35.00 12th 5,318.75 143.75 149.59 1,301.04 35.00

13th 5,175.00 143.75 145.55 1,266.04 35.00

2011-12 14th 5,031.25 143.75 141.50 1,231.04 35.00

15th 4,887.50 143.75 137.46 1,196.04 35.00

16th 4,743.75 143.75 133.42 1,161.04 35.00

17th 4,600.00 143.75 129.38 1,126.04 35.00

18th 4,456.25 143.75 125.33 1,091.04 35.00

2012-13 19th 4,312.50 143.75 121.29 1,056.04 35.00

20th 4,168.75 143.75 117.25 1,021.04 35.00

21st 4,025.00 143.75 113.20 986.04 35.00

2013-14 22nd 3,881.25 143.75 109.16 951.04 35.00

23rd 3,737.50 143.75 105.12 916.04 35.00

24th 3,593.75 143.75 101.07 881.04 35.00

25th 3,450.00 143.75 97.03 846.04 35.00

2014-15 26th 3,306.25 143.75 92.99 811.04 35.00 27th 3,162.50 143.75 88.95 776.04 35.00

28th 3,018.75 143.75 84.90 741.04 35.00

29th 2,875.00 143.75 80.86 706.04 35.00

2015-16 30th 2,731.25 143.75 76.82 671.04 35.00

31st 2,587.50 143.75 72.77 636.04 35.00

32nd 2,443.75 143.75 68.73 601.04 35.00

33rd 2,300.00 143.75 64.69 566.04 35.00

2016-17 34th 2,156.25 143.75 60.64 531.04 35.00

35th 2,012.50 143.75 56.60 496.04 35.00

36th 1,868.75 143.75 52.56 461.04 35.00

37rd 1,725.00 143.75 48.52 426.04 35.00

2017-18 38th 1,581.25 143.75 44.47 391.04 35.00

39th 1,437.50 143.75 40.43 356.04 35.00

40th 1,293.75 143.75 36.39 321.04 35.00

41st 1,150.00 143.75 32.34 286.04 35.00 2018-19 42th 1,006.25 143.75 28.30 251.04 35.00

43rd 862.50 143.75 24.26 216.04 35.00

44th 718.75 143.75 20.21 181.04 35.00

45th 575.00 143.75 16.17 146.04 35.00

2019-20 46th 431.25 143.75 12.13 111.04 35.00

47th 287.50 143.75 8.09 76.04 35.00

48th 143.75 143.75 4.04 41.04 41.04

Total Interest payment

Interest paid during construction period

Interest payment charged to Profit and Loss Account



Depreciation schedule (Regular)

Particulars WDV Rate FINANCIAL YEAR ENDED 3

2007-08 2008 - 09 2009 - 10 2010 - 11 2011 - 12

Land 3,512.00 3,512.00 3,512.00 3,512.00 3,512.00

Building 3.34%

Opening Balance - 2,510.00 3,570.00 3,570.00 3,570.00

Additions 2,510.00 1,060.00 - - -

Total(a) 2,510.00 3,570.00 3,570.00 3,570.00 3,570.00

Deductions - - - - -

GROSS BLOCK 2,510.00 3,570.00 3,570.00 3,570.00 3,570.00

Depreciation till date - - 83.83 203.07 322.31

Dep for the year 83.83 119.24 119.24 119.24

Total Depreciation - 83.83 203.07 322.31 441.55

Net Block 2,510.00 3,486.17 3,366.93 3,247.69 3,128.45

Plant & Machinery 5.28%

Opening Balance - 2,350.00 4,366.76 4,366.76 4,366.76

Additions 2,350.00 2,016.76 - -

Total(a) 2,350.00 4,366.76 4,366.76 4,366.76 4,366.76


GROSS BLOCK 2,350.00 4,366.76 4,366.76 4,366.76 4,366.76


Dep for the year 124.08 230.57 230.57 230.57


Net Block 2,350.00 4,242.68 4,012.12 3,781.55 3,550.99

Other Misc Asets 5.28%

Opening Balance - 1,540.00 4,151.17 4,151.17 4,151.17

Additions 1,540.00 2,611.17 - - -

Total(a) 1,540.00 4,151.17 4,151.17 4,151.17 4,151.17

Deductions - - - - - GROSS BLOCK 1,540.00 4,151.17 4,151.17 4,151.17 4,151.17


Dep for the year 81.31 219.18 219.18 219.18


Net Block 1,540.00 4,069.86 3,850.68 3,631.50 3,412.32



Depreciation schedule (Regular)

Particulars WDV Rate FINANCIAL YEAR ENDED 3

2007-08 2008 - 09 2009 - 10 2010 - 11 2011 - 12

Furniture Fixture 9.50%

Opening Balance - 1,500.00 1,633.24 1,633.24 1,633.24 Additions 1,500.00 133.24 - -

Total(a) 1,500.00 1,633.24 1,633.24 1,633.24 1,633.24


GROSS BLOCK 1,500.00 1,633.24 1,633.24 1,633.24 1,633.24


Dep for the year 142.50 155.16 155.16 155.16


Net Block 1,500.00 1,490.74 1,335.58 1,180.42 1,025.27

Vehicles 9.50%

Opening Balance - 1,000.00 1,088.83 1,088.83 1,088.83

Additions 1,000.00 88.83 - -

Total(a) 1,000.00 1,088.83 1,088.83 1,088.83 1,088.83


GROSS BLOCK 1,000.00 1,088.83 1,088.83 1,088.83 1,088.83


Dep for the year 95.00 103.44 103.44 103.44


Net Block 1,000.00 993.83 890.39 786.95 683.51

Total Gross Block 12,412.00 18,322.00 18,322.00 18,322.00 18,322.00 1

Total Depreciation - 526.73 1,354.31 2,181.89 3,009.47

Net Block 12,412.00 17,795.27 16,967.69 16,140.11 15,312.53 1

12,412.00 17,795.27 16,967.69 16,140.11 15,312.53 1

Depreciation for the year - 526.73 827.58 827.58 827.58



Depreciation schedule (Income Tax)

Particulars WDV Rate FINANCIAL YEAR ENDED 31ST

2007-08 2008 - 09 2009 - 10 2010 - 11 2011 - 12 2012

Land 3,512.00 3,512.00 3,512.00 3,512.00 3,512.00 3,51

Building 10%

Opening Balance - 2,510.00 2,962.00 2,057.80 1,852.02 1,66

Additions 2,510.00 1,060.00 - - - 40

Total(a) 2,510.00 3,570.00 2,962.00 2,057.80 1,852.02 2,06


GROSS BLOCK 2,510.00 3,570.00 2,962.00 2,057.80 1,852.02 2,06

Depreciation till date - 251.00 608.00

Dep for the year 251.00 357.00 296.20 205.78 185.20 20

Total Depreciation 251.00 608.00 904.20

Net Block 2,259.00 2,962.00 2,057.80 1,852.02 1,666.82 1,86

Plant & Machinery 15%15%

Opening Balance - 1,997.50 3,412.12 2,900.30 2,465.26 2,09

Additions 2,350.00 2,016.76 - - 60

Total(a) 2,350.00 4,014.26 3,412.12 2,900.30 2,465.26 2,69

Deductions 2150 - - - - -

GROSS BLOCK 2,350.00 4,014.26 3,412.12 2,900.30 2,465.26 2,69

Depreciation till date

Dep for the year 352.50 602.14 511.82 435.05 369.79 40

Total Depreciation

Net Block 1,997.50 3,412.12 2,900.30 2,465.26 2,095.47 2,29

Misc. Fixed Assets 15%

15%

Opening Balance - 1,309.00 3,332.15 2,832.33 2,407.48 2,04Additions 1,540.00 2,611.17 - - -

Total(a) 1,540.00 3,920.17 3,332.15 2,832.33 2,407.48 2,04


GROSS BLOCK 1,540.00 3,920.17 3,332.15 2,832.33 2,407.48 2,04


Dep for the year 231.00 588.03 499.82 424.85 361.12 30

Total Depreciation

Net Block 1,309.00 3,332.15 2,832.33 2,407.48 2,046.36 1,73



Depreciation schedule (Income Tax)

Particulars WDV Rate FINANCIAL YEAR ENDED 31ST M

2007-08 2008 - 09 2009 - 10 2010 - 11 2011 - 12 2012

Furniture Fixture 10.00%

Opening Balance - 1,350.00 1,334.91 1,201.42 1,081.28 97

Additions 1,500.00 133.24 - - -

Total(a) 1,500.00 1,483.24 1,334.91 1,201.42 1,081.28 97


GROSS BLOCK 1,500.00 1,483.24 1,334.91 1,201.42 1,081.28 97


Dep for the year 150.00 148.32 133.49 120.14 108.13 9

Total DepreciationNet Block 1,350.00 1,334.91 1,201.42 1,081.28 973.15 87

Vehicles 15.00%

Opening Balance - 850.00 798.00 678.30 576.56 49

Additions 1,000.00 88.83 - -

Total(a) 1,000.00 938.83 798.00 678.30 576.56 49


GROSS BLOCK 1,000.00 938.83 798.00 678.30 576.56 49


Dep for the year 150.00 140.82 119.70 101.75 86.48 7

Total Depreciation

Net Block 850.00 798.00 678.30 576.56 490.07 41

Depreciation for the year 1,134.50 1,836.31 1,561.03 1,287.56 1,110.72 1,08



0

Computation of Land and Building Construction Cost:

(Rs. in Lakhs)

Tota

Srl No. Particulars Earlier project Expansion Project Co4 Miscelleneous fixed assets 2,540.00 2

Expansion

New MFA 2700 2

Total 2,540.00 2,700.00 5

5 Preliminary Expenses 403.75

6 Pre-Operative Expenses 1,617.25 1

For Expansion 90.00

Total 2,021.00 90.00 2

TOTAL PROJECT COST 12,433.00 8,000.00 20

Vehicles, Guest Room Furniture and Interiors,Public area Furniture and Interior, CustomeryHouse Furnitures and Sundry Fixed Assets.

Company formation Expenses, Cost of FeasibilityStudies, Architects and Hotel consultation Fees,Project Management Fees, Brokerage andCommission on Capital Issue, other Capital IssueExpenses, Advertisement, Printing, Stationery, andLegal Expenses etc.

Deposit - EB, Sales Tax, Telephones, Customs etcEstablishment Expenses, Rent, Rates & Taxes,Travelling Expenses, Insurance, Initial PromotionCampaign, Lease Rentals, Interest duringconstruction period.



Details of Pre-operative Expenses

(Rs. in Lakh

Srl No. Particulars Amou

130

2 Loan application processing fee @ 1% of the loan amount of Rs.7350.00 lakhs 73

3 Interest on Term Loan during construction period for a period of 16 months 1102

4 Architect fee@ 0.75% of project cost 47.

5 Consultants fees 0.25% of the project cost 36

6 Lump sum Royalty to Raddisons 12(Pre-commissioning fees)

7 Technical fees to Raddissons 17

8 Travelling Expenses 78

9 Insurance 80

10 Advertisements 90

11 Legal Charges & Other incedental expenses 75

12 Initial Promotion Expenses 100

13 Other Misc expenses 278

Total 2021

Expenses incured for preparation of Project Report, Printing of Memorandum andincrease in Share capital



Calcualtion of working capital

(Rs. in Lakhs)

Particualrs No. of Months FINANCIAL YEAR ENDED 31ST MARCH

level 2007-08 2008 - 09 2009 - 10 2010 - 11 2011 - 12 2012 - 13 2013 - 14

Current Assets

Raw Material Stocks 2.25 0.00 0.00 362.35 720.27 932.58 1057.85 1163.13 1261.20

Debtors 0.5 0.00 0.00 228.55 522.91 582.51 639.20 672.31 717.69

Total Current Assets 0.00 0.00 590.90 1243.18 1515.08 1697.05 1835.44 1978.88

Current Liabilities

Sundry Creditors 0.25 0.00 0.00 13.45 25.15 28.04 29.24 31.46 36.45

Total Current Liabilities 0.00 0.00 13.45 25.15 28.04 29.24 31.46 36.45

Net Current Assets 0.00 0.00 577.46 1218.04 1487.05 1667.81 1803.98 1942.43

Margin@25% 0.00 0.00 144.36 304.51 371.76 416.95 450.99 485.61

Bank Borrowings 0.00 0.00 433.09 913.53 1115.28 1250.86 1352.98 1456.82

Int. On Bank Borrowings@12% 0.00 0.00 51.97 109.62 133.83 150.10 162.36 174.82



Rockwood Hotal Resorts Ltd

Administrative Expenses

Srl No. Particulars Amount

1 Printing & Stationery 1,500,000

2 Communication Cost 1,200,000

3 Insurance 750,000

4 Rent Rates & Taxes 600,000

5 Books & Periodicals 100,000

6 License Fees 1,000,000

7 Travelling Expenses 1,000,000

8 Stores, Spares & upkeep 1,500,000

9 Misc. Expenses 1,000,000

Total Annual Exp. 8,650,000



ROCKWOOD HOTELS & RESORTS LIMITED

0

Computation of Salaries & wages

Srl No. Position Nos. Salary Annual Salary

Per month

1 General Manager 2 100,000 2,400,000

2 Resident Manager 6 50,000 3,600,000

3 Department Head 18 30,000 6,480,000

4 Supervisors 25 15,000 4,500,000

5 Semi Skilled Staff 60 10,000 7,200,000

6 Unskilled Staff 80 5,000 4,800,000

7 Directors Remuneration 1 100,000 1,200,000

Total Annual Wages 30,180,000

Add: 20% Fringe Benefits 6,036,000

Annaul Compensation Package 36,216,000



Calculation of Tax


Particulars 2008 - 09 2009 - 10 2010 - 11 2011 - 12 2012 - 13 2013 - 14 2014 - 15

Profit before Tax 1,147.37 4,616.79 4720.48 5201.23 5333.44 5762.45 6043.23

Add: Depreciation 526.73 827.58 827.58 827.58 872.62 918.34 962.70

Sub Total (a) 1,674.10 5,444.37 5548.06 6028.81 6206.06 6680.78 7005.93

Ded: IT Depreciation 1,836.31 1,561.03 1287.56 1110.72 1088.78 1072.61 1055.48

Income as per IT (162.21) 3,883.34 4260.50 4918.09 5117.28 5608.17 5950.45

Tax @ 33.66% (54.60) 1,307.13 1,434.09 1,655.43 1,722.48 1,887.71 2,002.92

Minimum Alternate Tax:

Profit Before Tax 1,147.37 4,616.79 4,720.48 5,201.23 5,333.44 5,762.45 6,043.23

IT as per MAT @ 8.415% 96.55 388.50 397.23 437.68 448.81 484.91 508.54

IT considered in P/L A/c 96.55 1,307.13 1,434.09 1,655.43 1,722.48 1,887.71 2,002.92



Debt Service Coverage Ratio

(Rs. in Lakhs)


Particualrs 2008 - 09 2009 - 10 2010 - 11 2011 - 12 2012 - 13 2013 - 14 2014 - 1

Profit after Tax 1,050.82 3,309.66 3,286.40 3,545.80 3,610.96 3,874.74 4,040.3

Add:

Depreciation 526.73 827.58 827.58 827.58 872.62 918.34 962.70

Interest on Term Loan 825.00 814.54 774.89 694.45 614.02 533.58 453.1

Total Inflow (A) 2,402.55 4,951.78 4,888.87 5,067.84 5,097.60 5,326.65 5,456.1

Interest on Term Loans 825.00 814.54 774.89 694.45 614.02 533.58 453.1

Instalment of Term Loan 66.72 127.24 715.00 715.00 715.00 715.00 715.0

Total Outflow (B) 891.72 941.78 1,489.89 1,409.45 1,329.02 1,248.58 1,168.1

Annual DSCR (A/B) - - 3.28 3.60 3.84 4.27 4.67

Average DSCR 4.36



0

Break Even Analysis(Rs. in Lakhs)

Particulars % FINANCIAL YEAR ENDED 31S

2008 - 09 2009 - 10 2010 - 11 2011 - 12 2012 - 13

Net Sales 5,485.14 12,549.81 13,980.13 15,340.70 16,135.48

VARIABLE COSTS

Consumables 645.45 1,207.01 1,345.71 1,403.43 1,510.28

Utilities 80% 452.42 1,036.51 1,150.93 1,262.73 1,327.50

Repair & Maintenance 40% - - 269.11 378.84 472.02

Room Maintenance Cost 20% 71.88 184.47 207.52 232.43 244.05

Commission & Discounts 100% 179.71 461.16 518.81 581.07 610.12

Advertisement 25% 44.93 115.29 129.70 145.27 152.53

Salaries & Wages 20% 83.30 95.79 110.16 126.68

Administrative Overheads 25% 21.63 24.87 28.60 32.89 37.82

Total Variable Costs 1,416.02 3,112.60 3,746.18 4,146.81 4,481.00

Contribution 4,069.12 9,437.21 10,233.94 11,193.89 11,654.47

FIXED COSTS

utilities 20% 113.10 259.13 287.73 315.68 331.87

Repair & Maintenance 60% - - 403.67 568.27 708.03 Room Maintenance Cost 80% 287.54 737.86 830.10 929.71 976.19

Advertisement 75% 143.77 368.93 415.05 464.85 488.10

Salaries & Wages 80% - 333.19 383.17 440.64 506.74

Administrative Expenses 75% 64.88 74.61 85.80 98.67 113.47

Int. On term loans 100% 825.00 814.54 774.89 694.45 614.02

Depreciation 526.73 827.58 827.58 827.58 872.62

Total Fixed& Semi variable Costs 1,961.01 3,415.84 4,007.98 4,339.85 4,611.04

Profit Volume Ratio(Cont./Sales)% - - 73.20 72.97 72.23

Cash Break Even Rs. 2,850.31 5,700.86 6,926.58 7,659.08 8,219.42

Break Even Sales Rs. 3,377.03 6,528.44 7,754.16 8,486.66 9,092.04

BE Sales% 62% 52% 55% 55% 56%

Cash BE sales % 52% 45% 50% 50% 51%

55.91%

49.87%



Annexure for the Information Memorandum

2013-14 2014-15 2015-16 2016-17

5,485.14

2,986.04 6,332.15 7,697.90 8,656.18 9,350.13

EBIDTA 2,499.10 6,217.66 6,282.23 6,684.52 6,785.35 7,183.66 7,432.39 7,674.59 7,991.58

526.73 827.58 827.58 827.58 872.62 918.34 962.70

PBIT 1,972.37 5,390.08 5,454.65 5,856.94 5,912.73 6,265.32 6,469.69 6,669.10 6,947.81

825.00 773.29 734.16 655.71 579.29 502.88 426.46 350.05 273.63

PBT 1,147.37 4,616.79 4,720.48 5,201.23 5,333.44 5,762.45 6,043.23 6,319.05 6,674.18

Tax 96.55

PAT 1,050.82 3,309.66 3,286.40 3,545.80 3,610.96 3,874.74 4,040.31 4,202.59 4,415.66

2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00

9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00

2,083.00 1,333.00 833.00 583.00 333.00 0.00 0.00 0.00 0.00

1,050.82 4,360.48 7,401.56

7,283.28 7,156.04 6,441.04 5,726.04 5,011.04 4,296.04 3,581.04 2,866.04 2,151.04

As on

31st

2008 2009 2010 - 2011 2012

GrossRevenues

12,549.81 13,980.13 15,340.70 16,135.48 17,224.48 17,913.01 18,585.67 19,483.58

TotalExpenditure

10,040.82

10,480.62

10,911.08

11,492.00

Depreciation

1,005.49 1,043.77

Interest

on termloansfrombanks

1,307.13 1,434.09 1,655.43 1,722.48 1,887.71 2,002.92 2,116.46 2,258.52

EquityCapital

SharePremium

QuasiEquity

Reserves&

Surplus

10,702.04

14,067.68

17,574.44

21,246.76

25,081.37

29,129.05

NetWorth

14,133.82

16,693.48

19,234.56

22,285.04

25,400.68

28,574.44

32,246.76

36,081.37

40,129.05

SecuredLoans

financial model_hotel industry

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