NOVAK HOME CONCEPT INDIA

Source and Application of Funds

Amount
Application of Funds
(INR in Lacs)

Franchisee Fees - Non- Refundable 7.50

One Time - Interior, Store specification & other expenses 20.00
Deposit to Leasor - Rent 10.00
Inventory 40.00
Liquid Funds 10.00

Total Investment in Project 87.50

Amount
Source of Funds
(INR in Lacs)

Working Capital Gap - Bank Loan 40.00

Investment by Promotor 47.50

Total Investment in Project 87.50

NOVAK HOME CONCEPT INDIA
Detailed Calculations for ROI
Particulars Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Net Profit earned during the year 38.51 89.71 149.20 215.43 290.14
Depreciation 2.00 2.00 2.00 2.00 2.00
Cash Profit 40.51 91.71 151.20 217.43 292.14
Interest Expense 5.00 5.00 5.00 5.00 5.00
Tax on Interest 1.50 1.50 1.50 1.50 1.50
Cash Profit + Interest + Tax 47.01 98.21 157.70 223.93 298.64
benefit on Interest
Equity Investment 47.50 47.50 47.50 47.50 47.50
Bank Loan 40.00 40.00 40.00 40.00 40.00
Total Investment 87.50 87.50 87.50 87.50 87.50
Return on Investment (Bank + 54% 112% 180% 256% 341%
Equity)
Return on Equity 85% 193% 318% 458% 615%
 NOVAK HOME CONCEPT INDIA
Details of Interior Costs
Group Classification Subgroup Amount in INR

Other Decorative Expenses Other 2,000,000

Total Purchase Cost - Ex Factory 2,000,000

GST @ 0% 0
Frieght 0
Labour on Erection and establishment of above equipments 0

Total Cost - INR 2,000,000

or say
Total Cost - INR in Lacs 20.00
 NOVAK HOME CONCEPT INDIA
Various Projections for potential Franchisee of Novak
Key Figures
Particulars Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

No. of Months worked 12 12 12 12 12

Inflation
Sales Price % of Previous Year 0% 10% 10% 10% 10%
Purchases Price % of Previous Year 0% 10% 10% 10% 10%
Franchisee Fees % of Previous Year 0% 0% 0% 50% 0%
Lease Rent % of Previous Year 0% 5% 5% 5% 5%
Salaries % of Previous Year 0% 10% 10% 10% 10%
Overheads % of Previous Year 0% 10% 10% 10% 10%
Interest % of Previous Year 0% 0% 0% 0% 0%

Withdrawals during the year % of Earnings 20% 20% 20% 20% 20%

Debtors (days) 5 5 5 5 5
Invetory (days) 60 60 60 60 60
Creditors - Direct Exp (days) 5 5 5 5 5
Creditors - Indirect Exp (days) 30 30 30 30 30

No. of Sets (expected to be NOS 10 15 20 25 30

sold) - per Month
Sales Price per Unit INR in Lacs 2.50 2.80 3.10 3.40 3.70
Purchases Price per Unit INR in Lacs 1.50 1.70 1.90 2.10 2.30

Rent PM INR 3.00 3.20 3.40 3.60 3.80

 NOVAK HOME CONCEPT INDIA
Various Projections for potential Franchisee of Novak
Salaries
Particulars Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Manager
Nos 1 1 1 1 1
Per person (INR) 40000 44000 48400 53200 58500
Total (A) 40000 44000 48400 53200 58500

Asstt. Manager
Nos 1 1 1 1 1
Per person (INR) 30000 33000 36300 39900 43900
Total (B) 30000 33000 36300 39900 43900

Assemblers
Nos 2 2 2 3 3
Per person (INR) 12000 13200 14500 16000 17600
Total (C) 24000 26400 29000 48000 52800

Security
Nos 1 1 1 1 2
Per person (INR) 8000 8800 9700 10700 11800
Total (D) 8000 8800 9700 10700 23600

Total Salaries - Month (I = A + B + C + D + 1.02 1.12 1.23 1.52 1.79

E + F + G + H)

Total Salaries - Per Year 12.24 13.44 14.76 18.24 21.48

 NOVAK HOME CONCEPT INDIA
Various Projections for potential Franchisee of Novak
Profit and Loss Statement
Particulars Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Total Revenue (A) 300.00 504.00 744.00 1020.00 1332.00

Total Purchases Cost 180.00 306.00 456.00 630.00 828.00

Direct Exp
Transportation, Hamali 1.25 1.40 1.50 1.70 1.90
Other exp 0.50 0.60 0.70 0.80 0.90

Direct Expenses (B) 181.75 308.00 458.20 632.50 830.80

Gross Profit (C = A - B) 118.25 196.00 285.80 387.50 501.20

Fixed Cost
Salaries 12.24 13.44 14.76 18.24 21.48
Lease Rent 36.00 38.40 40.80 43.20 45.60

Electricity Exp 3.00 3.30 3.63 3.99 4.39

Admin Expenses 2.00 2.20 2.42 2.66 2.93
Marketing Expenses 3.00 3.30 3.63 3.99 4.39
Miscellenous Exp 2.00 2.20 2.42 2.66 2.93

Total Fixed Cost (D) 58.24 62.84 67.66 74.75 81.72

Operating Profit / Profit (E = C - D) 60.01 133.16 218.14 312.75 419.48

before Interest and Tax and
Depreciation

Depreciation - considering 10 years of useful life 2.00 2.00 2.00 2.00 2.00

Operating Profit / Profit (E = C - D) 58.01 131.16 216.14 310.75 417.48

before Interest and Tax

Interest Cost
Bank Interest - working Capital - ROI - 10% 4.00 4.00 4.00 4.00 4.00
Other Interest 1.00 1.00 1.00 1.00 1.00

Profit before Tax 55.01 128.16 213.14 307.75 414.48

Tax @ 30% 16.50 38.45 63.94 92.33 124.34
Profit after Tax 38.51 89.71 149.20 215.43 290.14

Withdrawals by Promotor 7.70 17.94 29.84 43.09 58.03

Profit contributed to Capital 30.81 71.77 119.36 172.34 232.11

 NOVAK HOME CONCEPT INDIA
Various Projections for potential Franchisee of Novak
Balance Sheet
Particulars Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Source of Funds
Capital of Promotor 47.50 47.50 47.50 47.50 47.50 47.50
R&S 30.81 102.58 221.93 394.27 626.38

Current Liabilities
Working Capital Loan 40.00 40.00 40.00 40.00 40.00 40.00
Trade Payables for Direct Exp 0.00 2.49 4.22 6.28 8.66 11.38

Trade Payables for Indirect 0.00 4.79 5.16 5.56 6.14 6.72
Exp

Liabilities Total 87.50 125.58 199.46 321.27 496.58 731.98

Fixed Assets 20.00 18.00 16.00 14.00 12.00 10.00

Current Assets
Sundry Debtors 0.00 4.11 6.90 10.19 13.97 18.25
Inventories 40.00 49.32 82.85 122.30 167.67 218.96
Deposit with Lessor 10.00 10.00 10.00 10.00 10.00 10.00
O/s Franchisee Fees 7.50 0.00 0.00 0.00 0.00 0.00
Cash and Bank (Liquid Funds) 10.00 44.16 83.71 164.78 292.94 474.77

Assets Total 87.50 125.58 199.46 321.27 496.58 731.98

Balance Sheet Check ! 0.00 0.00 0.00 0.00 0.00 0.00

 NOVAK HOME CONCEPT INDIA
Various Projections for potential Franchisee of Novak
Calculation of Liquid Funds

Particulars Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Opening Balance 10.00 44.16 83.71 164.78 292.94

Profit / (Loss) during the year 30.81 71.77 119.36 172.34 232.11
(after withdrawals)
Add: Depreciation 2.00 2.00 2.00 2.00 2.00
Increase / (Decrease) in 2.49 1.73 2.06 2.39 2.72
Sundry Creditors
Increase / (Decrease) in Other 4.79 0.38 0.40 0.58 0.57
Payables
(Increase) / Decrease in -4.11 -2.79 -3.29 -3.78 -4.27
Sundry Debtors
(Increase) / Decrease in -9.32 -33.53 -39.45 -45.37 -51.29
Inventories
(Increase) / Decrease in O/s 7.50 0.00 0.00 0.00 0.00
Franchisee Fees
(Increase) / Decrease in 0.00 0.00 0.00 0.00 0.00
Deposit to Lessor
Increase / (Decrease) in Loan 0.00 0.00 0.00 0.00 0.00
Repayment
Increase / (Decrease) in 0.00 0.00 0.00 0.00 0.00
Capital Balance

Closing Balance 44.16 83.71 164.78 292.94 474.77