Financial Modeling Case - Premium Bus Service

Assumptions - Bus Assumptions - Financing Assumptions - General

Cost of Bus 7,500,000 Debt 75% Tax Rate 33%

Maintenance / year 10% Equity 25%
Escalation Rate - Maintenan 15% Interest on Debt 15% Interest Income 5%
Life of Bus (years) 4 Tenure of loan (years) 4 Diesel rate (Rs./Lit) 64
Deprecation Rate 25% SLM Cost of Equity 20% Diesel Price escalation 15%
Inflation 10%
Assumptions - Operating Revenues Assumptions - Operating Costs Assumptions - Operating General

Seating Capacity 35 Fuel Efficiency ( Km / L ) 5 Route Mumbai - Pune

Load Factor 50% Driver Cost (Rs./ Trip) 600 Distance (Kms) 155
Tariff (Rs./Ticket) 360.00 Miscellaneous (Rs. / Trip) 300 Estimated Time Hours/Trip 3
Escalation Rate - Tariff 10% Toll Amount (Rs. / Trip) 800 Trips / Day 4
Days working in year 365
Income Statement
Year - 0 Year - 1 Year - 2 Year - 3 Year - 4
Flag 0 1 2 3 4
Revenue (Unit*per unit) 9,198,000 10,117,800 11,129,580 12,242,538
Other Income - - - -
Fuel Costs 2,896,640 3,331,136 3,830,806 4,405,427
Maintenance Expenses
Driver Costs
Miscellaneous Costs
Toll Amount
Cost of Revenues

Gross Pofit / (EBITDA)

Depreciation
Interest Expense
Profit Before Tax
Income Taxes
Profit After Tax

Balance Sheet
Year - 0 Year - 1 Year - 2 Year - 3 Year - 4 Debt Schedule
Assets Year - 0 Year - 1 Year - 2 Year - 3 Year - 4
Cash BOP - Debt
PPE, Gross (Cost Value) Int Expense
Acc Depreciation EAI
PPE, Net (Book Value) EOP - Debt
Total Assets
Principle Repaid
Liabilities
Debt
Equity
Retained Profit
Total Liabilities
Checksum

Cash Flow Statement

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
Average Cash

Free Cash Flow - Equity

Year - 0 Year - 1 Year - 2 Year - 3 Year - 4

Net Income
+ Depreciation Escalation Rate %- Tariff
- Capital Expenses 3% 5% 8% 10% 13%
- Debt Repayment/+ raised 3%
Diesel Price %

Cash Flow to Equity 5%

8%
10%
Returns Analysis - Equity 13%
Year - 0 Year - 1 Year - 2 Year - 3 Year - 4 15%

FCFE
cumulative cashflow

Cost of Equity
NPV
IRR