Sales 18000 Per day 50% of customers are repetetive wh

pay with the delay of 60 days

Cups and Plates 500
Chotu/Ramu 5000 Per month 10th of next month
Stove 3000
Sugar 50 per day 60 days of credit period 3000
Milk 500 per day 30 days of credit period 15000
Gas 1800 Pre paid one mon30 days in advance 1800
Cadamom
Ginger
Tea Powders
DalChini
4000 per day 30 days of credit period 120000
Biscuits
Rusk
Water
Tissues
Marketing/Advert 1000 Per Month 30 days in advance 1000
Rent 3000 Per Month 30 days in advance 3000
Table 25000
Chairs 10000
Buckets 1000
Dustbin 500
Stall 10000
Vessel 1000
Small Fridger 6000
Coffee Powder
Dry Fruits 3000 per day 15 days of credit 45000
Ciggerates
Own Money 100000
Borrow 0

Depreciation rate of 10% Straight Line method

Tax Rate to be assumed as 25%
delay of 60 days Revenue Liability Advance Income/Deferred Revenue Assets
Asset Fixed Tangible Asset Fixed Asset
Wages/ExpLiabilty Outstanding Expenses Outstanding Expenses Assets
Asset Fixed Assets Fixed Assets
Expense Liabilty Outstanding Expenses Creditor/Trade PayableAsset
Expense Liabilty Outstanding Expenses Creditor/Trade PayableAsset
Prepaid Expense Expense Liabilty Outstanding Expenses Creditor/Trade PayableAsset
Expense Liabilty Outstanding Expenses Creditor/Trade PayableAsset
Expense Liabilty Outstanding Expenses Creditor/Trade PayableAsset
Expense Liabilty Outstanding Expenses Creditor/Trade PayableAsset
Expense Liabilty Outstanding Expenses Creditor/Trade PayableAsset
Expense Liabilty Outstanding Expenses Creditor/Trade PayableAsset
Expense Liabilty Outstanding Expenses Creditor/Trade PayableAsset
Expense Liabilty Outstanding Expenses Creditor/Trade PayableAsset
Expense Liabilty Outstanding Expenses Creditor/Trade PayableAsset
Prepaid Expense
Prepaid Expense
Asset Fixed Assets
Asset Fixed Assets
Asset Fixed Assets
Asset Fixed Assets
Asset Fixed Assets
Asset Fixed Assets
Asset Fixed Assets
Expense Liabilty Outstanding Expenses Creditor/Trade PayableAsset
Expense Liabilty Outstanding Expenses Creditor/Trade PayableAsset
Expense Liabilty Outstanding Expenses Creditor/Trade PayableAsset
Capital/EquLiability
Liabiltity/Bank Loan/ Loan from family/frinds
Debtors/Trade Receivables
Business Model
Prepaid Expense Prepaid Expense Making and Selling Tea
Sell Revenue
Prepaid Expense Inventory/Stock Make
Prepaid Expense Inventory/Stock
Prepaid Expense Inventory/Stock
Prepaid Expense Inventory/Stock
Prepaid Expense Inventory/Stock
Prepaid Expense Inventory/Stock
Prepaid Expense Inventory/Stock
Prepaid Expense Inventory/Stock
Prepaid Expense Inventory/Stock
Prepaid Expense Inventory/Stock
Prepaid Expense Inventory/Stock

Prepaid Expense Inventory/Stock

Prepaid Expense Inventory/Stock
Prepaid Expense Inventory/Stock
 Income Statement for the year ending 31st March 2023 (April 2022 - Mar 2023)

Revenue 6,570,000 Cash Revenu 6,039,000 279000

Credit Revenue 531000 252000
COGS 2777350 531000
Sugar 18250
Milks 182500
Gas 21600 23400 1800
Grocery Items 1460000
Other Grocery items 1095000
Gross Profit 3,792,650

Operating Expens

Salary 60000
Marketing 12000
Rent 36000

EBITDA 3,684,650
Depreciation 5700 <<<

EBIT 3,678,950

Interst Expense 0
Incterest Income 0

EBT 3,678,950

Tax -919737.5 25%

PAT 2,759,213

Tax in case depreciaiton -919,738

Sugar
Cash 15250
Credit 3000 3000

Milk
Cash 167500
Credit 15000 15000

Grocery Items
Cash 1340000
Credit 120000 120000

Other Grocery Items

Cash 1050000
Credit 45000
 1-Apr-22 31st Mar 2023
assets
Current Assets
Debtors 0 531000
Prepaid Expense 0 6000
Cash 43000 2458912.5

NonCurrent Assets
Cups and Plates 500
Stove 3000
All other Fixed Assets 53500

Non Current Asset - Total 57000 51300

Total Assets 3047212.5

Liabilties
Current Liabilties
O/S Salary 0 5000
Creditors 0 183000

Non Current Liabilities

Loan 0

Equity Fund
Share Capital/Parter Capital/ 100000 100000
Surplus/Retainer Earning 2,759,213

Total Liabilities 3047212.5

Check/Difference 0
 Convert profit into cash Depreciation expense will result into decrease net p

increase in cl, profit will decrease, in order to reach

increase in CA, profit will increase, in order to reach
Cash flow from Operating activities
decrease in cl, profit will increase, in order to reach
Net Profit 2,759,213 decrease in CA, profit will decrease, in order to reac

Add back Depreciation 5700

Amount of Increase in debtors -531000
Increase in O/S Salarues 5000
Increase in Creditor 183000
Increase in Prepaid Expense -6000

Cash flow from operating activity 2,415,913

Cash flow from investing activities

Any asset purchase 0

Any asset sale 0
Investment Income 0

Cash flow from investing activities

Cash flow from financing activities

Borrow money 0
Paid loan 0
Interest Expense 0
Dividend paid 0

Cash flow from financing activities 0

Net Cash Flow 2,415,913

Opening Balance of Cash 43000

Ending Balance of Cash 2,458,913

e will result into decrease net profit, should my cash also decrese??? No That’s why in the journey of reaching from net pro

will decrease, in order to reach from profit to cash, you have add that portion increase in CL
will increase, in order to reach from profit to cash, you have reduce that portion increase in CA

will increase, in order to reach from profit to cash, you have reduce that portion decrease in CL
t will decrease, in order to reach from profit to cash, you have add that portion decrease in CA
rney of reaching from net profit to cash balance, I need to add back dpereciation and any other non cash expenses, if there is any
penses, if there is any
Revenue 6,570,000
COGS
Sugar 18250
Milk 182500
Gas Cylinder 21600
Mulple Items 1460000
Multiple item2 1095000
Gross Profit 3,792,650

Operating Expesnes
Cghotu Salary 60000
Advertising 12000
Rent 36000

EBITDA 3,684,650

Depreciation 5700

EBIT 3,678,950

Interest 0

EBT 3,678,950

Tax 919,737.50 25%

Net Profit/PAT 2,759,212.50

 Day 0 Day 365

Non-Current Asset
Stove 3000 3000
Cups and Plates 500 500
Assets - Multiple 53500 53500
Depreciation 0 5700

Fixed Asset 57000 51300

Current Asset
Trade Reciveable 0 547,500
Prepaid Gas 1800 1800
Prepaid Advertising 1000 1000
Prepaiud Rend 3000 3000
Cash/Bank Balance 37200 2442612.5

Total Assets 3,047,213

Current Liability
Salary Payables 0 5000
Trade payables - Sugar 0 3000
Trade Payables - Milk 15000
Trade Payables - Multiple Items 0 120000
Trade Payables - Multiple Items 2 0 45000

Non-Current Liabilities Area

Loan and Debt 0

Shareholders Fund
Owners Capital 100000 100000
Drawing 0 0
Reserves and Surplus/Retained Earnings 2,759,212.50

Total Liabilities 3047212.5

Error 0
Net Profit 2,759,213

Depreciation 5,700

Debtors -547,500
Salary Payables 5,000
Trade payables 3,000
Trade Payables - Milk 15,000
Prepaid Gas -
Trade Payables - Multiples Items 120,000
Prepaid Gas -
Prepaid Rent -
Trade Payables - Multiples Items 2 45,000

Cash flow from operating activity 2,405,413

Cash from from investing activty

Purchase of assets 0
Investing income 0

Cash flow from financing activity

Interst 0
Loan 0
Raising equity 0
Repaying of equity 0
Divident payment 0

Net inflow/outflow of cash 2,405,413

Opening Balance of Cash 37200
Closing balance of Cash 2,442,613
 Income statement for the year
Sales 6,570,000 3,285,000.0 540,000.0
COGS 2,777,350
Gross Profit 3,792,650
Operating Expense
Salary to Chotu 60000
Rent 36000
Advertising 12000
EBITDA 3,684,650
Depreciation -5700
EBIT 3,678,950
Interest Income 4,300
Interest expense 0
EBT 3,683,250
Tax (20%) 736,650
PAT 2,946,600
Balance Sheet
at the end of the year
Assets Day 1 Day 365
Cups and Plates 500 500
Stove 3000 3000
Table 25000 25000
Chairs 10000 10000
Buckets 1000 1000
Dustbin 500 500
Stall 10000 10000 0
Vessel 1000 1000
Small Fridger 6000 6000
Accumulated Depreciation -5700 -4700
Net Assets 51300
Investments 43000 43000 11000
2000
Current Assets
Cash in hand/Bank 0 2594500
Debtors 0 540000
Prepaid Expense 5800

Total Assets 100000 3234600

Liabilities
Share Capital 100000 100000
Reserves and Surplus 2946600
Borrow 0 0

Current Liabilties
Trade Payables/Creditors 183000
Salary Payables 5000

Total Liabilities 100000 3234600

Check 0 0
Net Income 0 2946600
-Other Income -4300
+Provision of Tax 0 736650
+Depreciation 0 5700
"+/-" & "Working capital changes" 0
Debtors -540000
Prepaid Expense -5800
Trade Paybles/Creditors 183000
Salary Payables 5000

-Tax Paid 0 -736650

Cash flow from operating activities 0 2590200

Purchase of assets -57000 0

Sales of Assets 0 0
Investment done/sold -43000 0
Income from Investment 4300
Cash flow from investing activity -100000 4300

Issue of shares capital 100000 0

New borrowing taken 0 0
Interest paid 0 0
repayment of loan 0 0
Buy back of shares 0 0
divident paid 0 0
dividend distribution tax paid 0 0

Cash flow from financing activity 100000 0

Net change in cash 0 2594500

Closing Balance of Cash 2594500

Book One up on a wall street
Book Masterclass with Super Investors
Book Psychology of Money
Book The thoughtful Investor
Book Blitzscaling
Book Rich Dad Poor Dad
Website Alpha Ideas
 Equity Shares Invidual/Institional

Value Debt Debt/Debentures/Bonds Institutional Investors SBI 500Crores

Broker 14 days+

t+2
t+14+ days
Bonds 5-6%
 Health Tech
2019 Platform Beta stage
need fund
2021
Amol is an angel investor

Income Statement
Top line Revenue/Sales 1500000

Cost
Asset Cloud storage
Asset Smooth apps/web platform
Asset Website 3,000,000
Pizza parties
Cab facilities
electricirty biil
Consulting fee
Registration fees 500000
Asset Salaries 1,500,000

EBIT 1,000,000 93,000,000

Interest 0
EBT 1,000,000
Tax 0
PAT 1,000,000 -3500000 <<< Balance Sheet as retained earning a

Balance Sheet Balance Sheet

Asset
Cash 5,000,000 6500000
Intangible Asset 4,500,000 0

Asset 9,500,000 6500000

Liabilties
Loan 0

Equity 10,000,000 10,000,000

Retained Earnings 1,000,000 -3500000
Liabilties 11,000,000 6,500,000

5,000,000
Book value of equity 11,000,000
 Profitable company

P/E multuple 93

8 hours
Naysayers dual earning

Earning 268 193.47 461.47

Price/Earning 93.4 54.24231
Value 25031.2 <<<<Highky overvalue and investment into this company is nothing but Harac

Assets
Staff

HUL
Kapil 100,000 Expense

et as retained earning as reserves

pany is nothing but Haracery
Name Madhav IT Company Mid Management
Age 35
Professional Experience 11 Years 25 26
Per annum In hand salary 600,000 690,000
Increment every year (CAGR) 15%
Spent 240,000 256,800
7%
Savings 1,200,000 433,200
8% PPF @ 8% 150000 150000
11.50% PPFAS @ 11.5% 1,050,000 283,200
Variability 0%
Excess Liquidity

Opening Bal:
PPF 0 150,000
PPFAS 0 1,050,000

Interest on PPF during the year 0 12,000

Datsun Gain on PPFAS during the year 0 120,750
15-18L
New Investment
PPF 150000 150,000
PPFAS 1,050,000 283,200

Closing balance of Assets:

PPF 150,000 312,000
PPFAS 1,050,000 1,453,950

Total Value of Assets for Madhav 1,200,000 1,765,950

25 26
Name Sumit Per month In hand salary 1,200,000 1,380,000
Age 35 Increment every year (CAGR) 15%
Professional Experience 11 Years Spent 900,000 1,062,000
IT Company 18%
Savings 300,000 318,000
4%
Opening Balance 0 300,000

Inflow 300,000 318,000

Interest - 12,000

Closing Balnce of Assets Cash 300,000 630,000

Value of Liabilities 0 0
Rate 11%
 27 28 29 30 31 32 33
793,500 912,525 1,049,404 1,206,814 1,387,836 1,596,012 1,835,414

274,776 294,010 314,591 336,612 360,175 385,388 412,365

518,724 618,515 734,813 870,202 1,027,661 1,210,624 1,423,049

150000 150000 150000 150000 150000 150000 150000
368,724 468,515 584,813 720,202 877,661 1,060,624 1,273,049
0% 0% 0% 0% 0% 0% 0%
-

312,000 486,960 675,917 879,990 1,100,389 1,338,421 1,595,494

1,453,950 1,989,878 2,687,229 3,581,073 4,713,098 6,132,766 7,898,658

24,960 38,957 54,073 70,399 88,031 107,074 127,640

167,204 228,836 309,031 411,823 542,006 705,268 908,346

150,000 150,000 150,000 150,000 150,000 150,000 150,000

368,724 468,515 584,813 720,202 877,661 1,060,624 1,273,049

486,960 675,917 879,990 1,100,389 1,338,421 1,595,494 1,873,134

1,989,878 2,687,229 3,581,073 4,713,098 6,132,766 7,898,658 10,080,053

2,476,838 3,363,146 4,461,063 5,813,488 7,471,186 9,494,152 11,953,187

27 28 29 30 31 32 33
1,587,000 1,825,050 2,098,808 2,413,629 2,775,673 3,192,024 3,670,827

1,253,160 1,478,729 1,744,900 2,058,982 2,429,599 2,866,927 3,382,973

333,840 346,321 353,908 354,647 346,074 325,097 287,854

630,000 989,040 1,374,923 1,783,827 2,209,827 2,644,294 3,075,163

333,840 346,321 353,908 354,647 346,074 325,097 287,854

25,200 39,562 54,997 71,353 88,393 105,772 123,007

989,040 1,374,923 1,783,827 2,209,827 2,644,294 3,075,163 3,486,024

0 0 0 0 0 0 0
 34 35 36
2,110,726 2,427,335 0

441,230 472,116 -

1,669,496 1,955,218 0
150000 150000 0
1,519,496 1,805,218 0
0% 0%
2,000,000

1,873,134 2,172,984 2,496,823

10,080,053 12,758,755 16,031,230

149,851 173,839 199,746 220,000

1,159,206 1,467,257 1,843,591 9

150,000 150,000 -
1,519,496 1,805,218 -

2,172,984 2,496,823 2,696,569

12,758,755 16,031,230 17,874,821 Cash+marketability securities/current liabilities

14,931,739 18,528,053 20,571,390 10 10

34 35 36
4,221,452 4,854,669 0 Understand the situations
Identify the ratio to apply
3,991,908 4,710,452 - Interpret the ratios

229,543 144,217

3,486,024 3,855,008 4,153,426

229,543 144,217 0

139,441 154,200 166,137 #DIV/0!

3,855,008 4,153,426 4,319,563 2.16

0 0
urrent liabilities
 Book lot of revenue
Debtors
Banker Federal Bank Bad debts
Business Manager Nykaa

Cash and Accrual concept of accounting

Debt Equity Ratio
Total Equity/Total Asset Ratio How to identify misrepresentation
Interest Coverage Ratio
DSCR
Liquidity Ratio Depreciation
Inventory Turnover Working Capital
Cash cycle Liabilities
Bad Debt
 1. How to interlink financial statements
2. Working capital cycles - Manufacturing & Service sectors

Accrual concept of accounting

entify misrepresentation

Debtors 50000
Inventory 30000
Creditors 60000
WC 20000
Excess Cash 0 Cash-Capex
Investment 0
Debt 10000
Cash+Investment-capex

Net cash free debt free working capital 10000

1. Concept of only equity or debt & Equity Combo??
the ultimate objective of the management of company??
To maximise shareholder's wealth
Capital 100,000 100,000
Equity 50000 100,000
Debt 50000 0
Interest Rate 10% 10%
Tax Rate 30% 30%

A B
Revenue 100000 100000
COGS 20000 20000
Gross Profit 80000 80000
Opex 20000 20000
EBIT 60000 60000
Interest 5000 0
EBT 55000 60000
Tax 16500 18000
PAT 38500 42000

ROE 77.00% 42.00%

 Time period
Stall/Thela/Tapri/Canopy 5 Fixed Asset
Gas Operating cost
Vessel Fixed Asset
Credit period of month
Sugar COGS
Advance Payment
Tea leaves COGS
ginger COGS
Cadamom COGS
Masala COGS
Clove COGS
Mint COGS
Tez Pata COGS
Green Tea COGS
Biscuits/Khari COGS
Ciggerates COGS
Pakaged Water COGS
Water - RO water COGS
Coffee COGS
Bornvita COGS
Cohocalate Power COGS
Bread Butter COGS
Milk COGS
Stove Fixed Asset
Glasses/paper/durable/ COGS
Tray Fixed Asset
Folding Table and chair Fixed Asset
Garbage (Movable) Fixed Asset
Starrer/spoon Fixed Asset
Stainer Fixed Asset
Ligther Fixed Asset
Moving Fridge Fixed Asset
Cleaning Material Operating cost
Chottu - 1 or 2 Operating cost
Battery Backups Fixed Asset
Paper Plates COGS
Almirah - small Fixed Asset
Revenue pay as you serve
You serve and wait for the payment
You receive the payment and serve
Account Payables Balance Sheet
Prepaid Expense Balance Sheet

Sales
Account recivables

Income BS Category
Expected customer Revenue
Devil customers Revenue Account receivable Current Assets
Godly customers Advance revenue/Deffered revenue Current liabilities/non current liabilities
 Accrural conecpt of accounting

record the revenue and expenses in the Financial year

of occurances irrespective of you reciving/spending in
the same year or not

es/non current liabilities

Going Concern
Separate entity than its owners Professional
Business is an artificial person

Matching principal

Financial Year April to Mar today

Jan to dec
1st year
2nd years

Liabiltiy
Capital <<Owners provided
Loan <<FI or third party / Banks

Anita Interest
Dhrvi Preference

Decision <<<Business
Money advantage <<<thinr parties bankers

Partnershiop business in india

Interest on Partner's capital
CFOs
Deploy funds
Analysis Capital Budgeting
Reliance Industries
Refinery Machinery

15 crores

Cash outflow
15 rores
Cash inflow
50 lakhs 45
1 crores 0.88
3 crores 2.15

Operating expenditure running day to day business

Capital Expenditure Fixed Asset

Depreciation
ay to day business

>>>Asset longer life Enables a business to earn money

Benefit
Owned
Kaushik 26
65 39
Assets
Cash in Hand/Bank 10000
Investments 500000
Loand and Advances 250000
House 0
Car 1600000
Jewellery (commodity) 2000000
any other movable and immovable 250000
Insurance 0

Liabilities
Education loan 0
Home loan 0
Personal loan 0
vehicle loan 800000

credit card dues 30000

Family/friends loan 0
income tax payable 50000

Networth / Value 3,730,000

Based on which apprach Cost/Asset Apprach

Value of a business Market value of assets - market value of liabilities

Sonam 2021
Income 1 2 3
800000 920,000 1,196,000
15% 30%

Savings 60% 480000 552,000 717,600

Inflation Rate 7%
Value 25,534,474 448,598 482,138 585,775

Dairy milk chocalate 80

Average life of hen 10

frequency it lay eggs 1 egg a day 365 per year
price of gold 4800 per gram
Weight of one egg 57 grams 273,600
Inflation Rate (Discount Rate) 7%
Price per gram gold 4,800 5,280 5,808
10% 10%
Annual quantity 20,805 20,805 20,805
1 2 3
2021 2022 2023
Price of selling that hen 99,864,000 109,850,400 120,835,440
PV factor 0.934579439252336 0.8734387283 0.8162978769
Pv for each year 93,330,841 95,947,594 98,637,713
93,330,841 95,947,594 98,637,713

Present Value of all the future cash flows 1,060,313,156

 4 5 6 7 8 9 10
1,315,600 1,447,160 1,591,876 2,069,439 2,276,383 2,504,021 2,754,423
10% 10% 10% 30% 10% 10% 10%

789,360 868,296 955,126 1,241,663 1,365,830 1,502,413 1,652,654

602,199 619,083 636,441 773,245 794,925 817,213 840,125

6,389 7,028 7,730 8,503 9,354 10,289 11,318

10% 10% 10% 10% 10% 10% 10%
20,805 20,805 20,805 20,805 20,805 20,805 20,805
4 5 6 7 8 9 10
2024 2025 2026 2027 2028 2029 2030
132,918,984 146,210,882 160,831,971 176,915,168 194,606,684 214,067,353 235,474,088
0.762895212 0.7129861795 0.6663422238 0.6227497419 0.5820091046 0.5439337426 0.5083492921
101,403,256 104,246,338 107,169,133 110,173,875 113,262,862 116,438,456 119,703,086
101,403,256 104,246,338 107,169,133 110,173,875 113,262,862 116,438,456 119,703,086
 11 12 13 14 15 16 17
1,790,375 1,879,894 1,973,888 2,171,277 2,714,097 2,985,506 3,284,057
-35% 5% 5% 10% 25% 10% 10%

1,074,225 1,127,936 1,184,333 1,302,766 1,628,458 1,791,304 1,970,434

510,357 500,817 491,456 505,235 590,228 606,777 623,789

 18 19 20 21 22 23 24
3,612,463 3,793,086 3,793,086 4,931,011 5,177,562 5,436,440 5,708,262
10% 5% 0% 30% 5% 5% 5%

2,167,478 2,275,851 2,275,851 2,958,607 3,106,537 3,261,864 3,424,957

641,278 629,292 588,123 714,542 701,186 688,080 675,219

 25 26 27 28 29 30
5,993,675 6,293,359 6,608,027 6,938,428 7,979,192 9,176,071
5% 5% 5% 5% 15% 15%

3,596,205 3,776,015 3,964,816 4,163,057 4,787,515 5,505,643

662,598 650,213 638,059 626,133 672,947 723,260

 31 32 33 34 35 36
10,552,482 11,080,106 11,634,111 12,215,817 12,826,608 13,467,938
15% 5% 5% 5% 5% 5%

6,331,489 6,648,064 6,980,467 7,329,490 7,695,965 8,080,763

777,336 762,806 748,548 734,557 720,827 707,353

100
110

A*(1+10%)^2
A

hen gives golden eggs

100
 64 65
2060
37 38 39
14,141,335 14,848,402 15,590,822
5% 5% 5%

8,484,801 8,909,041 9,354,493

7%
694,132 681,157 668,425
100*10%*1
10
100+(100*10%*1)
110
121
121
121

121
2

10% per annum

= 121
100