Maintenance / year 10% Equity 25% Escalation Rate - Maintenance 15% Interest on Debt 15% Life of Bus (years) 4 Tenure of loan (years) 4 Deprecation Rate 25% SLM Cost of Equity 20% Seating Capacity 35 Fuel Efficiency ( Km / L ) 5 Load Factor 50% Driver Cost (Rs./ Trip) 500 Tariff (Rs./Ticket) 300.00 Miscellaneous (Rs. / Trip) 500 Escalation Rate - Tariff 10% Toll Amount (Rs. / Trip) 500 Year - 0 Year - 1 Year - 2 Year - 3 Year - 4 Flag 0 1 2 3 4 Revenue 7665000 8431500 9274650 10202115 Escalation Rate - Tariff Other Income Fuel Costs 1,900,920 2,186,058 2,513,967 2,891,062 Diesel Price escalation Maintenance Expenses 750,000 825,000 907,500 998,250 Driver Costs 730,000 803,000 883,300 971,630 Increase at inflation rate Miscellaneous Costs 730,000 803,000 883,300 971,630 Increase at inflation rate Toll Amount 730,000 803,000 883,300 971,630 Toll amount remains constant Cost of Revenues 4,840,920 5,420,058 6,071,367 6,804,202 Gross Pofit / (EBITDA) Depreciation Interest Expense Profit Before Tax Income Taxes Profit After Tax Year - 0 Year - 1 Year - 2 Year - 3 Year - 4 Assets Cash PPE, Gross Acc Depreciation PPE Net Assumptions - Bus Assumptions - Financing Assumptions - Operating Revenues Assumptions - Operating Costs Income Statement Balance Sheet Total Assets
Liabilities Debt Equity Retained Profit Total Liabilities Checksum - - - - - Year - 0 Year - 1 Year - 2 Year - 3 Year - 4 Net Income (PAT) Depreciation Cash Flow From Operations Capex Cash Flow from Investing Debt (Repayment)/Issuance Equity Addition Cash Flow from Financing Net change in Cash Cash - BOP Cash - EOP Checksum - - - - Year - 0 Year - 1 Year - 2 Year - 3 Year - 4 Net Income + Depreciation - Capital Expenses - Debt Repayment/+ raised Cash Flow to Equity Year - 0 Year - 1 Year - 2 Year - 3 Year - 4 FCFE Cost of Equity Returns Analysis - Equity Cash Flow Statement Free Cash Flow - Equity NPV IRR Tax Rate 33% Debt is to be repaid in 4 equal annual installments at the end of every year Interest Income 5% Diesel rate (Rs./Lit) 53 Diesel Price escalation 15% Inflation 10% Route Mumbai - Pune Distance (Kms) 155 Estimated Time Hours/Trip 3 Trips / Day 4 Escalation Rate - Tariff All inflation/escalation happens from year 2 Diesel Price escalation Increase at inflation rate Increase at inflation rate Toll amount remains constant Debt Schedule Year - 0 Year - 1 Year - 2 Year - 3 Year - 4 BOP - Debt Int Expense Principle Repaid EOP - Debt Assumptions - General Assumptions - Operating General EAI
10% 25% 40% 55% 12% 13% 14% 15% 16% 17% Financing Debt (%) - For Neutral Case I n t e r e s t
R a t e
( % ) 95% Financing Debt (%) - For Neutral Case Cost of Bus 7,500,000 Debt 75% Tax Rate 33% Maintenance / year 10% Equity 25% Debt is to be repaid in 4 equal annual installments at the end of every year Repaid Escalation Rate - Maintenance 15% Interest on Debt 15% Interest Income 5% Life of Bus (years) 4 Tenure of loan (years) 4 Diesel rate (Rs./Lit) 53 Deprecation Rate 25% SLM Cost of Equity 20% Diesel Price escalation 15% Inflation 10% Seating Capacity 35 Fuel Efficiency ( Km / L ) 5 Route Mumbai - Pune Load Factor 50% Driver Cost (Rs./ Trip) 500 Distance (Kms) 155 Tariff (Rs./Ticket) 300.00 Miscellaneous (Rs. / Trip) 500 Estimated Time Hours/Trip 3 Escalation Rate - Tariff 10% Toll Amount (Rs. / Trip) 500 Trips / Day 4 Year - 0 Year - 1 Year - 2 Year - 3 Year - 4 Flag 0 1 2 3 4 Revenue 7,665,000 8,431,500 9,274,650 10,202,115 Escalation Rate - Tariff Other Income All inflation/escalation happens from year 2 Fuel Costs 2,398,780 2,758,597 3,172,387 3,648,245 Diesel Price escalation Maintenance Expenses 750,000 862,500 991,875 1,140,656 Driver Costs 730,000 803,000 883,300 971,630 Increase at inflation rate Miscellaneous Costs 730,000 803,000 883,300 971,630 Increase at inflation rate Toll Amount 730,000 730,000 730,000 730,000 Toll amount remains constant Cost of Revenues 5,338,780 5,957,097 6,660,862 7,462,161 Gross Pofit / (EBITDA) 2,326,220 2,474,403 2,613,788 2,739,954 Depreciation 1,875,000 1,875,000 1,875,000 1,875,000 Interest Expense 843,750 632,813 421,875 210,938 Profit Before Tax (392,530) (33,410) 316,913 654,017 Income Taxes - - 104,581 215,826 Profit After Tax (392,530) (33,410) 212,332 438,191 Year - 0 Year - 1 Year - 2 Year - 3 Year - 4 Debt Schedule Assets Year - 0 Year - 1 Year - 2 Year - 3 Year - 4 Cash - 76,220 511,561 1,192,643 2,099,584 BOP - Debt 5,625,000 5,625,000 4,218,750 2,812,500 1,406,250 PPE, Gross 7,500,000 7,500,000 7,500,000 7,500,000 7,500,000 Int Expense 843,750 632,813 421,875 210,938 Acc Depreciation 1,875,000 3,750,000 5,625,000 7,500,000 EAI 1,406,250 1,406,250 1,406,250 1,406,250 PPE, Net 7,500,000 5,625,000 3,750,000 1,875,000 - EOP - Debt 5,625,000 4,218,750 2,812,500 1,406,250 - Total Assets 7,500,000 5,701,220 4,261,561 3,067,643 2,099,584 Principle Repaid5,625,000 (1,406,250) (1,406,250) (1,406,250) (1,406,250) Liabilities Debt 5,625,000 4,218,750 2,812,500 1,406,250 - Equity 1,875,000 1,875,000 1,875,000 1,875,000 1,875,000 Retained Profit (392,530) (425,940) (213,607) 224,584 Total Liabilities 7,500,000 5,701,220 4,261,561 3,067,643 2,099,584 Checksum - - - - - Year - 0 Year - 1 Year - 2 Year - 3 Year - 4 Net Income (PAT) - (392,530) (33,410) 212,332 438,191 Depreciation - 1,875,000 1,875,000 1,875,000 1,875,000 Cash Flow From Operations - 1,482,470 1,841,591 2,087,332 2,313,191 Capex (7,500,000) - - - - Cash Flow from Investing (7,500,000) - - - - Debt (Repayment)/Issuance 5,625,000 (1,406,250) (1,406,250) (1,406,250) (1,406,250) Equity Addition 1,875,000 Cash Flow from Financing 7,500,000 (1,406,250) (1,406,250) (1,406,250) (1,406,250) Net change in Cash - 76,220 435,341 681,082 906,941 Cash - BOP - - 76,220 511,561 1,192,643 Cash - EOP - 76,220 511,561 1,192,643 2,099,584 Checksum - - - - Year - 0 Year - 1 Year - 2 Year - 3 Year - 4 Net Income - (392,530) (33,410) 212,332 438,191 + Depreciation - 1,875,000 1,875,000 1,875,000 1,875,000 - Capital Expenses (7,500,000) - - - - 4% 10% 25% 40% 55% 95% - Debt Repayment/+ raised 5,625,000 (1,406,250) (1,406,250) (1,406,250) (1,406,250) 12% 9.0% 9.2% 9.4% 9.7% 8.6% Cash Flow to Equity (1,875,000) 76,220 435,341 681,082 906,941 13% 8.9% 9.0% 9.0% 8.8% 1.6% 14% 8.8% 8.7% 8.6% 7.9% -4.8% 15% 8.8% 8.5% 8.2% 7.0% -10.6% 16% 8.7% 8.3% 7.7% 6.2% -15.9% Year - 0 Year - 1 Year - 2 Year - 3 Year - 4 17% 8.6% 8.1% 7.2% 5.3% -20.7% FCFE (1,875,000) 76,220 435,341 681,082 906,941 Cost of Equity 20.0% NPV ($677,644) IRR 3.67% I n t e r e s t R a t e ( % ) Income Statement Financing Debt (%) - For Neutral Case Balance Sheet Cash Flow Statement Free Cash Flow - Equity Returns Analysis - Equity Assumptions - Bus Assumptions - Financing Assumptions - Operating Revenues Assumptions - Operating Costs Assumptions - Operating General Assumptions - General