npasource.com financials

7/27/2019 npasource.com financials

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Inception cost (It differs city to city)

ELEMENTS

Area (Sqft) 300

Centre Furnishing / Improvement etc. (A) INRLeasehold Improvement 90,000

Sub-Total 90,000

Equipments (B)

Laptops / Desktops 40,000

Air Conditioner 18,000

Printer / Scanner / Photocopier 10,000

Power backup (Microtek; 800 VA) 15,000

Comunication Equipments (Landline + Mobiles+ Broadband) 8,000

Misc items (water dispenser, pantry items,office stationery etc15,000

Sub-Total 106,000

Total capital investment (A+B) 196,000

Launch & Pre-opening marketing expenses (C) 50,000

Working Capital Requirement 3

Rental 90,000

HR 102,000

Electricity 9,000

Total WCR 201,000

Total Financial Requirement for Setup 447,000

Franchise Fee (excluding service tax) 200,000

TOTAL PROJECT COST 650,000

Franchise fees can vary according to category of the city

Franchise set up cost


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3/16

PSF

per unit cost no. of units300

300

20,000 2

18,000


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5/16

Franchisee employee cost

Staff Strength

Business Development head

Business Development Executives

Admin executive

Office boy

Total Number Of Employees

Salary structure Yearly Increment

Business Development Executives 15%

Admin executive 10%

Office boy 10%

Annual payout

Business Development Executives

Admin executiveOffice boy

ANNUAL HR COST

AVERAGE MONTHLY COST

Figures in INR


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7/16

Year - 1 Year - 2 Year - 3 Year - 4 Year - 5

1 1 1 1 1

1 1 2 2 2

1 1 1 1 1

1 1 1 1 1

4 4 5 5 5


180,000 207,000 238,000 274,000 315,000

168,000 168,000 168,000 168,000 168,000

60,000 66,000 73,000 80,000 88,000


180,000 207,000 476,000 548,000 630,000

168,000 168,000 168,000 168,000 168,00060,000 66,000 73,000 80,000 88,000

408,000 441,000 717,000 796,000 886,000

34,000 37,000 60,000 66,000 74,000


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9/16

Salary per month

15,000

14,000

5,000


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Franchisee revenue Estimation

Sources

Y1 Y2

Web / Telephonic sales 18% 21%

Corporate Sales 6% 6%

E-auction 25 30

3500 4025

87500 120750

Resolution/Consultancy (cases) 4 4

25000000 27500000

100000000 110000000

2000000 2200000

Y1 Y2

Web / Telephonic sales

Average Daily Queries / calls 10

Total no. of working days in a year 250

Total nuber of queries (annual) 2500 2750

Percentage conversion 5% 6%

Number of Login IDs sold 125 165

Registration Price 4,000

Revenue from Web / Telephonic sales 500,000 660,000

Corporate Sales

Number of corporate tie-ups 35 40

Registration Price 5,000

Revenue from Corporate sales 175,000 200,000

Total Registrations 160 205

Total Revenue 2,762,500 3,180,750

revenue figs in INR


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Y3 Y4 Y5

19% 20% 21%

4% 4% 4%

(2 employees)

48 55 66 15%

4629 5323 6121 15%

222192 293829.6 405455.04

(2 employees)

6 7 7

30000000 30000000 35000000

180000000 210000000 245000000

3600000 4200000 4900000 2%

Y3 Y4 Y5

3025 3328 3661 10%

8% 9% 10%

242 300 366

968,000 1,198,080 1,464,400

45 51 58 13%

225,000 255,000 290,000

287 351 424

5,015,192 5,946,910 7,059,855

Contribution (%)


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Franchisee income statement

Year 1 Year 2

Web / Telephonic sales 350,000 462,000

Corporate Sales 122,500 140,000

E-auction 26,250 36,225

Resolution/Consultancy 1,400,000 1,540,000

Annual Revenue 1,898,750 2,178,225

Cost of Operations

Employee Cost 408,000 441,000

Rent 360,000 414,000

Electricity 36,000 41,000

Stationery 18,988 21,782

Sales Incentive to employees 76,000 87,000Seminars / Workshops 120,000 138,000

Telephone / Mobile Expenses 60,000 78,000

Conveyance allowance 240,000 288,000

Marketing Overheads

Local marketing 95,000 109,000

Contribution to central marketing fund - -

Misc expenses 60,000 69,000

Total Cost of Operations 1,473,988 1,686,782

% of Gross Receipts 78% 77%

Earning Before Interest, Tax, Depreciation &

Amortization (EBITDA) 424,763 491,443

Profit margin 22% 23%

Depreciation 29,400 29,400

PBT 395,363 462,043

Profit margin (%) 21% 21%

Project Cost 449,000

ROI (%) 88% 103%

Payback (yrs) 1.1

Income projections

250%

300%

350%

400%


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0%

50%

100%

150%

200%


14/16

Year 3 Year 4 Year 5 Assumptions

Units Increment

677,600 838,656 1,025,080

157,500 178,500 203,000

66,658 88,149 121,637

2,520,000 2,940,000 3,430,000

3,421,758 4,045,305 4,779,717 20%

717,000 796,000 886,000

476,100 547,515 629,642 30,000 15%

47,000 54,000 62,000 3,000

34,218 40,453 47,797 1%

137,000 162,000 191,000 4% as percentage of to158,700 182,505 209,881 30,000 cost per event

101,400 131,820 171,366 5,000 minium cost per m

460,800 552,960 663,552 20,000 minium cost per m

171,000 202,000 239,000 5%

- - - 0%

79,350 91,253 104,940 5,000

2,382,568 2,760,506 3,205,179

70% 68% 67%

1,039,190 1,284,799 1,574,538

30% 32% 33%

29,400 29,400 29,400 15%

1,009,790 1,255,399 1,545,138

30% 31% 32%

225% 280% 344%

Year 1


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Year 3

Year 4

Year 5


16/16

70%

30% more details are there in the franchisee agreement

tal revenue1 seminar per month for 9 months

onth

onth Or 4% of total revenue

npasource.com financials

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