Assumptions - Bus

Cost of Bus
Maintenance / year
Escalation Rate - Maintenance
Life of Bus (years)
Deprecation Rate

7,500,000
10%
15%
4
25% SLM

Debt
Equity
Interest on Debt
Tenure of loan (years)
Cost of Equity

Assumptions - Operating Revenues

Seating Capacity
Load Factor
Tariff (Rs./Ticket)
Escalation Rate - Tariff

Debt is to be
repaid in 4 equal
Assumptions - General
annual
installments at
Tax Rate
the
end of every
year
Interest Income
Diesel rate (Rs./Lit)
Diesel Price escalation
Inflation
Assumptions - Operating General

Assumptions - Financing
75%
25%
15%
4
20%

Assumptions - Operating Costs

35
50%
300.00
10%

Fuel Efficiency ( Km / L )
Driver Cost (Rs./ Trip)
Miscellaneous (Rs. / Trip)
Toll Amount (Rs. / Trip)

5
500
500
500

Route
Distance (Kms)
Estimated Time Hours/Trip
Trips / Day

Income Statement
Year - 0
0

Year - 2
2
8,431,500
40,954
2,186,058
862,500
803,000
803,000
730,000
5,384,558

Year - 3
3
9,274,650
87,958
2,513,967
991,875
883,300
883,300
730,000
6,002,442

Year - 4
4
10,202,115
140,876
2,891,062
1,140,656
971,630
971,630
730,000
6,704,978

Gross Pofit / (EBITDA)

2,824,080

3,087,896

3,360,166

3,638,013

Depreciation
Interest Expense
Profit Before Tax

1,875,000
843,750
105,330

1,875,000
674,776
538,120

1,875,000
480,456
1,004,710

1,875,000
256,988
1,506,025

34,759
70,571

177,580
360,540

331,554
673,156

496,988
1,009,037

Income Taxes
Profit After Tax

5%
42
15%
10%

Mumbai - Pune
155
3
4

21,000.00
Year - 1
1
7,665,000
1,900,920
750,000
730,000
730,000
730,000
4,840,920

Flag
Revenue
Other Income
Fuel Costs
Maintenance Expenses
Driver Costs
Miscellaneous Costs
Toll Amount
Cost of Revenues

33%

Escalation Rate - Tariff

226300
1900920

All inflation/escalation happens from year 2

Diesel Price escalation

Increase at inflation rate
Increase at inflation rate
Toll amount remains constant

1406250
15%

Balance Sheet
Year - 0
Assets
Cash
PPE, Gross
Acc Depreciation
PPE, Net
Total Assets

Year - 1

Year - 2

Year - 3

Year - 4

Debt Schedule
Year - 0

7,500,000
7,500,000
7,500,000

819,078
7,500,000
1,875,000
5,625,000
6,444,078

1,759,152
7,500,000
3,750,000
3,750,000
5,509,152

2,817,521
7,500,000
5,625,000
1,875,000
4,692,521

3,988,304
7,500,000
7,500,000
3,988,304

BOP - Debt
Int Expense
EAI(eual anual insta)
EOP - Debt

5,625,000

Principle Repaid
Liabilities
Debt
Equity
Retained Profit
Total Liabilities
Checksum

5,625,000
1,875,000
7,500,000
-

4,498,507
1,875,000
70,571
6,444,078
-

3,203,041
1,875,000
431,111
5,509,152
-

1,713,254
1,875,000
1,104,267
4,692,521
-

Year - 1
5,625,000
843,750
1,970,243
4,498,507

Year - 2
4,498,507
674,776
1,970,243
3,203,041

Year - 3
3,203,041
480,456
1,970,243
1,713,254

Year - 4
1,713,254
256,988
1,970,243
-

1,126,493

1,295,466

1,489,786

1,713,254

1,875,000
2,113,304
3,988,304
-

Cash Flow Statement

Year - 0
Net Income (PAT)
Depreciation
Cash Flow From Operations
Capex
Cash Flow from Investing
Debt (Repayment)/Issuance
Equity Addition
Cash Flow from Financing

Year - 1
-

(7,500,000)
(7,500,000)
5,625,000
1,875,000
7,500,000

Net change in Cash

Cash - BOP
Cash - EOP
Checksum

Year - 2

70,571
1,875,000
1,945,571
-

360,540
1,875,000
2,235,540

Year - 3

Year - 4

673,156
1,875,000
2,548,156

###
###

1,009,037
1,875,000
2,884,037

###
###

(1,126,493)

(1,295,466)

(1,489,786)

(1,713,254)

(1,126,493)

(1,295,466)

(1,489,786)

(1,713,254)

819,078

940,074

1,058,369

1,170,782

819,078
-

819,078
1,759,152
-

1,759,152
2,817,521
-

2,817,521
3,988,304
-

Free Cash Flow - Equity

(7,500,000)
5,625,000
(1,875,000)

Year - 1

Year - 2

Year - 3

Year - 4

70,571
1,875,000

360,540
1,875,000

673,156
1,875,000

1,009,037
1,875,000

(1,126,493)
819,078

(1,295,466)
940,074

(1,489,786)
1,058,369

(1,713,254)
1,170,782

Returns Analysis - Equity

Year - 0
FCFE
Cost of Equity
NPV
IRR

(1,875,000)
20%
637,490
35.95%

Year - 1
819,078

Year - 2
940,074

Year - 3
1,058,369

Year - 4
1,170,782

Interest Rate (%)

Year - 0
Net Income
+ Depreciation
- Capital Expenses
- Debt Repayment/+ raised
Cash Flow to Equity

35.95%
12%
13%
14%
15%
16%
17%

Financing Debt (%) - For Neutral Case

10%
25%
40%

55%

95%

Loan
Rate
N
EAI

500000
12%
5
-138,704.87 Int
Principle R

60000
-78,704.87
421,295.13