Arav is planning to start B2B luxury cab service in Mumbai with a fleet of 10 luxur

average price of each car is Rs 25 lakh and Arav expects the cars to run for a total
fund 70% of his business with long term debt (10 years) at 12.5% interest, that wo
instalments over the tenure of 7 years. The further assumptions about his operati
1. The firm contracts with the organisations for 120 km’s per day at a price of R
vehicle utilisation of 75%, which means that on an average 7.5 vehicles will be un
2. The firm expects to increase the price per KM at 5% per annum
3. The petrol expenses are expected to be Rs 10/KM, which are further expecte
4. The firm incurs an annual charge of Rs 10 lakh for maintenance
5. The organisations pay the firm after 45 days and the firm pays the - driver’s s
(30 days creditors period). The driver’s current salary is Rs 5 lakh and is expected
6. The firm incurs a straight-line depreciation of equal values
 umbai with a fleet of 10 luxury cars of multiple brands. The
ects the cars to run for a total of 7 years. Arav has decided to
ars) at 12.5% interest, that would be paid off in equal
assumptions about his operations are shared below:
0 km’s per day at a price of Rs 40/KM. The firm predicts a
verage 7.5 vehicles will be under contract.
t 5% per annum
M, which are further expected to increase at 12% per annum.
or maintenance
d the firm pays the - driver’s salary + petrol expenses monthly
y is Rs 5 lakh and is expected to grow at 8% per annum.
qual values
Particulars Units Mar-23 Mar-24 Mar-25
Income & Expense
Total KM's 120.00 438,000 438,000 438,000
Utilisation 2.5% 75% 77% 79%
Price per km 5% 40 42 44
Petrol expenses 12% 10.00 11.20 12.54
Maintainence expenses 1,000,000 1,000,000 1,000,000
Driver's Salary 8% 2,400,000 2,592,000 2,799,360

Fixed Asset Schedule

Opening balance - 21,428,571 17,857,143
Add: purchses 25,000,000 - -
Less: Dep 3,571,429 3,571,429 3,571,429
Closing balance 21,428,571 17,857,143 14,285,714

Debt Repayment Schedule

Opening balance - 15,000,000 12,500,000
Add: debt drawdown 17,500,000 - -
Less: debt repaid 2,500,000 2,500,000 2,500,000
Closing balance 15,000,000 12,500,000 10,000,000

Interest 12.5% 2,187,500 1,875,000 1,562,500

Payables & Receivables

Debtor days 45 45 45
Debors 1,620,000 1,743,525 1,876,469

Creditor days 30 30 30
Creditors 270,000 309,960 355,834
Mar-26 Mar-27 Mar-28 Mar-29

438,000 438,000 438,000 438,000

81% 83% 85% 87%
46 49 51 54
14.05 15.74 17.62 19.74
1,000,000 1,000,000 1,000,000 1,000,000
3,023,309 3,265,174 3,526,387 3,808,498

14,285,714 10,714,286 7,142,857 3,571,429

- - - -
3,571,429 3,571,429 3,571,429 3,571,429
10,714,286 7,142,857 3,571,429 -

10,000,000 7,500,000 5,000,000 2,500,000

- - - -
2,500,000 2,500,000 2,500,000 2,500,000
7,500,000 5,000,000 2,500,000 -

1,250,000 937,500 625,000 312,500

45 45 45 45
2,019,550 2,173,540 2,339,273 2,517,642

30 30 30 30
408,498 468,955 538,361 618,038
Particulars Units Mar-23 Mar-24 Mar-25

Sales 13,140,000 14,141,925 15,220,247

Less: COGS 5,685,000 6,363,180 7,128,675

Gross profit 7,455,000 7,778,745 8,091,572

Less: other operating expenses 1,000,000 1,000,000 1,000,000

EBITDA 6,455,000 6,778,745 7,091,572

Less: Dep 3,571,429 3,571,429 3,571,429

EBIT 2,883,571 3,207,316 3,520,144

Less: Interest (2,187,500) (1,875,000) (1,562,500)

EBT 696,071 1,332,316 1,957,644

Less: Tax 174,018 333,079 489,411

EAT 522,054 999,237 1,468,233

Net Margin Ratio 3.97% 7.07% 9.65%

(Eat/sales , net profit ratio)

Dividends 156,616 299,771 440,470

Growth rate 91.41% 46.94%
Mar-26 Mar-27 Mar-28 Mar-29

16,380,791 17,629,826 18,974,100 20,420,875

7,993,362 8,970,795 10,076,440 11,327,959

8,387,429 8,659,031 8,897,660 9,092,916

1,000,000 1,000,000 1,000,000 1,000,000

7,387,429 7,659,031 7,897,660 8,092,916

3,571,429 3,571,429 3,571,429 3,571,429

3,816,000 4,087,603 4,326,231 4,521,487

(1,250,000) (937,500) (625,000) (312,500)

2,566,000 3,150,103 3,701,231 4,208,987

641,500 787,526 925,308 1,052,247

1,924,500 2,362,577 2,775,923 3,156,741

11.75% 13.40% 14.63% 15.46%

577,350 708,773 832,777 947,022

31.08% 22.76% 17.50% 13.72%
Particulars Units Mar-23 Mar-24 Mar-25
Equity
Shareholders Fund 7,500,000 7,500,000 7,500,000
Reserves & Surplus 522,054 1,521,291 2,989,524
Total Equity 8,022,054 9,021,291 10,489,524

Liabilities
Debt 15,000,000 12,500,000 10,000,000
Creditors 473,750 530,265 594,056
Total Liability 15,473,750 13,030,265 10,594,056

Total Asset + Liabilities 23,495,804 22,051,556 21,083,580

Assets
Fixed Assets 21,428,571 17,857,143 14,285,714
Cash balance 2,067,232 4,194,413 6,797,866
Debtors - - -
Total assets 23,495,804 22,051,556 21,083,580

Checksum - - -

NWC (excl cash for valuation purpose) 473,750 56,515 63,791

Mar-26 Mar-27 Mar-28 Mar-29

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

4,914,024 7,276,601 10,052,524 13,209,265
12,414,024 14,776,601 17,552,524 20,709,265

7,500,000 5,000,000 2,500,000 -

666,114 747,566 839,703 943,997
8,166,114 5,747,566 3,339,703 943,997

20,580,137 20,524,167 20,892,227 21,653,261

10,714,286 7,142,857 3,571,429 -

9,865,851 13,381,310 17,320,799 21,653,261
- - - -
20,580,137 20,524,167 20,892,227 21,653,261

- - - -

72,057 81,453 92,137 104,293

Particulars Units Mar-23 Mar-24
Cash Flow from Operating Activities
EAT Rs. 522,054 999,237
Add: interest paid Rs. 2,187,500 1,875,000
Add: Dep Rs. 3,571,429 3,571,429
Add: NWC adjustments Rs. 473,750 56,515
CFO Rs. 6,754,732 6,502,181

Cash Flow from Investing Activities

Purchase of fixed assets Rs. (25,000,000) -
CFI (25,000,000) -

Cash Flow from Financing Activities

Issue of equity Rs. 7,500,000 -
Add: debt adjustments Rs. 15,000,000 (2,500,000)
Less: interest paid Rs. (2,187,500) (1,875,000)
CFF Rs. 20,312,500 (4,375,000)

Cash generated during the year Rs. 2,067,232 2,127,181

Add: opening balance Rs. - 2,067,232
Closing Balance Rs. 2,067,232 4,194,413
Mar-25 Mar-26 Mar-27 Mar-28 Mar-29

1,468,233 1,924,500 2,362,577 2,775,923 3,156,741

1,562,500 1,250,000 937,500 625,000 312,500
3,571,429 3,571,429 3,571,429 3,571,429 3,571,429
63,791 72,057 81,453 92,137 104,293
6,665,952 6,817,986 6,952,958 7,064,489 7,144,962

- - - - -
- - - - -

- - - - -
(2,500,000) (2,500,000) (2,500,000) (2,500,000) (2,500,000)
(1,562,500) (1,250,000) (937,500) (625,000) (312,500)
(4,062,500) (3,750,000) (3,437,500) (3,125,000) (2,812,500)

2,603,452 3,067,986 3,515,458 3,939,489 4,332,462

4,194,413 6,797,866 9,865,851 13,381,310 17,320,799
6,797,866 9,865,851 13,381,310 17,320,799 21,653,261
Particulars Units Mar-23 Mar-24 Mar-25 Mar-26

Sales 13,140,000 14,141,925 15,220,247 16,380,791

Price per km 40 42 44 46
Petrol expenses 10.00 11.20 12.54 14.05
Maintainence expenses 1,000,000 1,000,000 1,000,000 1,000,000
Driver's Salary 2,400,000 2,592,000 2,799,360 3,023,309

Total Fixed Cost 3,400,000 3,592,000 3,799,360 4,023,309

Revenue/KM 40.00 42.00 44.10 46.31
Variable Cost/KM 10.00 11.20 12.54 14.05
Break Even KM/Day 41 43 44 46

Target EBIT 500,000 500,000 500,000 500,000

Break Even KM/Day 47 49 50 51
Mar-27 Mar-28 Mar-29

17,629,826 18,974,100 20,420,875

49 51 54
15.74 17.62 19.74
1,000,000 1,000,000 1,000,000
3,265,174 3,526,387 3,808,498

4,265,174 4,526,387 4,808,498

48.62 51.05 53.60
15.74 17.62 19.74
47 49 52

500,000 500,000 500,000

53 55 57
Particulars Mar-23

KM/Day 120
Total KM's 436,693
Utilisation 75%
Price per km 40
Petrol expenses 10.00
Maintainence expenses 1,000,000
Driver's Salary 2,400,000

Sales 13,100,794
Less: COGS 5,675,198

Gross profit 7,425,595

Less: other operating expenses 1,000,000

EBITDA 6,425,595
Less: Dep 3,571,429

EBIT 2,854,167
Less: Interest (2,187,500)

EBT 666,667
Less: Tax 166,667

EAT 500,000