Ansaar Management Company

Affordable Housing Project

Feasibility Study
Forecast Horizon: 24 Months
By ------------------------- -------------------------
Study Date October 26, 2012
Ansaar Management Company
Affordable Housing Project
Feasibility Study
Required Outputs Rupees, unless stated otherwise
1 Direct cost per unit 460,369
2 Cost per unit 513,006
3 Price per unit 570,006
4 Total Project Costs 293,146,057
5 Equity IRR 103%
Affordability
6 Down Payment 171,002
7 Mortgage Proceeds 399,004
8 Monthly Installment (EMI) 5,929
9 Minimum Income 19,765
10 Required Project Finance Limit 33,023,967
Funding Required
11 Equity 61,788,587
12 Debt 33,023,967
13 Total Cap 94,812,553
Funds Flow Summary
Cash generated 32,571,784
Cash employed 61,788,587
Cash Generation % 53%
Monthly Cash Flow (See row # 76 in sheet 'Project FS')
Notes
Borrowing costs associated to Qualifying Assets are capitalized in accordance with IAS 23
Inventoriable costs are computed by applying principals of IAS 2
Backflush costing is used for simplicity & efficient accounting.
Ansaar Management Company
Affordable Housing Project Historical /Hard punch Black
Feasibility Study Linked / Formula Blue
Rupees, unless stated otherwise
01-Jan-13 31-Jan-13 28-Feb-13 31-Mar-13 30-Apr-13 31-May-13 30-Jun-13 31-Jul-13 31-Aug-13 30-Sep-13 31-Oct-13 30-Nov-13 31-Dec-13
Projected Income Statement
Units constructed - - - - - - 34 34 34 34 34 34 34
Units sold - - - - - - - - - 38 38 38 38
Revenue - - - - - - - - - 21,714,523 21,714,523 21,714,523 21,714,523
Less: Direct Cost
Cost of House Sales - - - - - - - - - 17,537,868 17,537,868 17,537,868 17,537,868
Total direct cost - - - - - - - - - 17,537,868 17,537,868 17,537,868 17,537,868
Gross Profit - - - - - - - - - 4,176,655 4,176,655 4,176,655 4,176,655
Less: Indirect Cost
Opex - 111,943 111,943 111,943 111,943 111,943 111,943 111,943 111,943 111,943 111,943 111,943 111,943
Contingencies - 1,130,621 1,130,621 1,130,621 1,130,621 1,130,621 1,130,621 1,130,621 1,130,621 1,130,621 1,130,621 1,130,621 1,130,621
Markup on running finance 116 14,562 29,298 30,588 59,358 88,464 59,591 148,398 238,229 150,193 58,686 - -
Total indirect cost 116 1,257,125 1,271,861 1,273,151 1,301,921 1,331,027 1,302,154 1,390,962 1,480,792 1,392,756 1,301,250 1,242,563 1,242,563
Total Project Cost 116 1,257,125 1,271,861 1,273,151 1,301,921 1,331,027 1,302,154 1,390,962 1,480,792 18,930,624 18,839,118 18,780,431 18,780,431
Pretax Profit (116) (1,257,125) (1,271,861) (1,273,151) (1,301,921) (1,331,027) (1,302,154) (1,390,962) (1,480,792) 2,783,899 2,875,405 2,934,091 2,934,091
Less: Tax - - - - - - - - - - - - -
Earnings After Tax (116) (1,257,125) (1,271,861) (1,273,151) (1,301,921) (1,331,027) (1,302,154) (1,390,962) (1,480,792) 2,783,899 2,875,405 2,934,091 2,934,091
Add: Retained Profit b/f - (116) (1,257,241) (2,529,102) (3,802,253) (5,104,174) (6,435,201) (7,737,356) (9,128,317) (10,609,110) (7,825,211) (4,949,806) (2,015,715)
Divisible Profit (116) (1,257,241) (2,529,102) (3,802,253) (5,104,174) (6,435,201) (7,737,356) (9,128,317) (10,609,110) (7,825,211) (4,949,806) (2,015,715) 918,377
Less: Dividend
Retained Profit c/f (116) (1,257,241) (2,529,102) (3,802,253) (5,104,174) (6,435,201) (7,737,356) (9,128,317) (10,609,110) (7,825,211) (4,949,806) (2,015,715) 918,377
Projected Balance Sheet
Assets
Housing Inventory 39,375,000 39,375,000 39,375,000 41,745,859 44,116,719 46,487,578 59,059,110 71,630,641 84,202,173 79,235,836 74,269,500 69,270,343 64,179,681
Cash 9,884 1,728 3,824 575 556 431 359 1,480 1,271 140,292 70,820 92,854 206,395
Total Assets 39,384,884 39,376,728 39,378,824 41,746,434 44,117,274 46,488,009 59,059,469 71,632,122 84,203,444 79,376,129 74,340,320 69,363,198 64,386,076
Liabilities
Project Finance Drawn 10,000 1,258,969 2,532,926 4,988,257 7,475,589 9,991,921 17,579,770 25,257,618 33,023,967 25,412,753 17,501,540 9,590,326 1,679,112
Project Finance 10,000 1,258,969 2,532,926 4,988,257 7,475,589 9,991,921 17,579,770 25,257,618 33,023,967 25,412,753 17,501,540 9,590,326 1,679,112
Equity 39,375,000 39,375,000 39,375,000 40,560,430 41,745,859 42,931,289 49,217,055 55,502,821 61,788,587 61,788,587 61,788,587 61,788,587 61,788,587
Retained Earnings (116) (1,257,241) (2,529,102) (3,802,253) (5,104,174) (6,435,201) (7,737,356) (9,128,317) (10,609,110) (7,825,211) (4,949,806) (2,015,715) 918,377
Total Liabiliities & Capital 39,384,884 39,376,728 39,378,824 41,746,434 44,117,274 46,488,009 59,059,469 71,632,122 84,203,444 79,376,129 74,340,320 69,363,198 64,386,076
- - - - - - - - - - - - -
Projected Cash Flow Statement
Net Profit (116) (1,257,125) (1,271,861) (1,273,151) (1,301,921) (1,331,027) (1,302,154) (1,390,962) (1,480,792) 2,783,899 2,875,405 2,934,091 2,934,091
+ Noncash items - - - - - - - - - - - - -
+ Working Capital Adjustments (39,375,000) - - (2,370,859) (2,370,859) (2,370,859) (12,571,532) (12,571,532) (12,571,532) 4,966,337 4,966,337 4,999,156 5,090,663
Cash Flow from Operations (CFO) (39,375,116) (1,257,125) (1,271,861) (3,644,011) (3,672,781) (3,701,886) (13,873,686) (13,962,493) (14,052,324) 7,750,235 7,841,742 7,933,248 8,024,754
Cash Flow from Investments (CFI)
Funding
Equity 39,375,000 - - 1,185,430 1,185,430 1,185,430 6,285,766 6,285,766 6,285,766 - - - -
Debt 10,000 1,248,969 1,273,957 2,455,332 2,487,332 2,516,332 7,587,849 7,677,849 7,766,349 (7,611,214) (7,911,214) (7,911,214) (7,911,214)
Cash Flow from Financing (CFF) 39,385,000 1,248,969 1,273,957 3,640,761 3,672,761 3,701,761 13,873,614 13,963,614 14,052,114 (7,611,214) (7,911,214) (7,911,214) (7,911,214)
Net Cash Flow (CFN) 9,884 (8,156) 2,096 (3,249) (19) (125) (72) 1,121 (210) 139,022 (69,472) 22,034 113,541
Free Cash Flow to Firm (FCFF) (39,375,000) (1,242,563) (1,242,563) (3,586,313) (3,586,313) (3,586,313) (13,670,347) (13,670,347) (13,670,347) 8,044,176 8,044,176 8,044,176 8,044,176
Free Cash Flow to Equity (FCFE) (39,365,116) (8,156) 2,096 (1,188,679) (1,185,449) (1,185,555) (6,285,838) (6,284,645) (6,285,975) 139,022 (69,472) 22,034 113,541
Cash Beginning Balance - 9,884 1,728 3,824 575 556 431 359 1,480 1,271 140,292 70,820 92,854
Cash Ending Balance 9,884 1,728 3,824 575 556 431 359 1,480 1,271 140,292 70,820 92,854 206,395
Ratios & KPIs
Gross Margin 0% 0% 0% 0% 0% 0% 0% 0% 0% 19% 19% 19% 19%
Net Margin 0% 0% 0% 0% 0% 0% 0% 0% 0% 13% 13% 14% 14%
Current Ratio 3,938 31 16 8 6 5 3 3 3 3 4 7 38
ROE 0% -3% -3% -3% -4% -4% -3% -3% -3% 5% 5% 5% 5%
ROI 0% -3% -3% -3% -3% -3% -2% -2% -2% 4% 4% 4% 5%
Debt/Equity 0% 3% 7% 14% 20% 27% 42% 54% 65% 47% 31% 16% 3%
Project IRR 93%
Project NPV 85,518,122
Equity IRR 103%
Equity NPV 85,629,498
Ansaar Management Company
Affordable Housing Project Historical /Hard punch Black
Feasibility Study Linked / Formula Blue
Rupees, unless stated otherwise
01-Jan-13 31-Jan-13 28-Feb-13 31-Mar-13 30-Apr-13 31-May-13 30-Jun-13 31-Jul-13 31-Aug-13 30-Sep-13 31-Oct-13 30-Nov-13 31-Dec-13
Workings
Product Cost Allocation
Beginning Inventory Balance - 39,375,000 39,375,000 39,375,000 41,745,859 44,116,719 46,487,578 59,059,110 71,630,641 84,202,173 79,235,836 74,269,500 69,270,343
Land Cost 37,500,000 - - - - - - - - - - - -
Land acquisition closing cost 1,875,000 - - - - - - - - - - - -
Infrastructural Development - - - 2,343,750 2,343,750 2,343,750 2,343,750 2,343,750 2,343,750 2,343,750 2,343,750 2,343,750 2,343,750
Cost of Houses Construction - - - - - - 10,084,034 10,084,034 10,084,034 10,084,034 10,084,034 10,084,034 10,084,034
Markup on RF for Direct Costs - - - 27,109 27,109 27,109 143,748 143,748 143,748 143,748 143,748 110,928 19,422
Total 39,375,000 39,375,000 39,375,000 41,745,859 44,116,719 46,487,578 59,059,110 71,630,641 84,202,173 96,773,705 91,807,368 86,808,212 81,717,549
Less: Cost of Sales - - - - - - - - - 17,537,868 17,537,868 17,537,868 17,537,868
Ending Inventory Balance 39,375,000 39,375,000 39,375,000 41,745,859 44,116,719 46,487,578 59,059,110 71,630,641 84,202,173 79,235,836 74,269,500 69,270,343 64,179,681
Breakeven Analysis
Breakeven Units - - - - - - - - - 198 198 198 198
Unitary Analysis
Number of Housing Units (total sellable area / unit size) 571
Sale price per unit 570,006
Direct cost per unit 460,369
Ansaar Management Company
Affordable Housing Project
Feasibility Study
Rupees, unless stated otherwise
Projected Income Statement
Units constructed
Units sold
Revenue
Less: Direct Cost
Cost of House Sales
Total direct cost
Gross Profit
Less: Indirect Cost
Opex
Contingencies
Markup on running finance
Total indirect cost
Total Project Cost
Pretax Profit
Less: Tax
Earnings After Tax
Add: Retained Profit b/f
Divisible Profit
Less: Dividend
Retained Profit c/f
Projected Balance Sheet
Assets
Housing Inventory
Cash
Total Assets
Liabilities
Project Finance Drawn
Project Finance
Equity
Retained Earnings
Total Liabiliities & Capital
Projected Cash Flow Statement
Net Profit
+ Noncash items
+ Working Capital Adjustments
Cash Flow from Operations (CFO)
Cash Flow from Investments (CFI)
Funding
Equity
Debt
Cash Flow from Financing (CFF)
Net Cash Flow (CFN)
Free Cash Flow to Firm (FCFF)
Free Cash Flow to Equity (FCFE)
Cash Beginning Balance
Cash Ending Balance
Ratios & KPIs
Gross Margin
Net Margin
Current Ratio
ROE
ROI
Debt/Equity
Project IRR
Project NPV
Equity IRR
Equity NPV
31-Jan-14 28-Feb-14 31-Mar-14 30-Apr-14 31-May-14 30-Jun-14 31-Jul-14 31-Aug-14 30-Sep-14 31-Oct-14 30-Nov-14 31-Dec-14
34 34 34 34 34 34 34 34 34 34 - -
38 38 38 38 38 38 38 38 38 38 38 -
21,714,523 21,714,523 21,714,523 21,714,523 21,714,523 21,714,523 21,714,523 21,714,523 21,714,523 21,714,523 21,714,523 -
17,537,868 17,537,868 17,537,868 17,537,868 17,537,868 17,537,868 17,537,868 17,537,868 17,537,868 17,537,868 17,537,868 -
17,537,868 17,537,868 17,537,868 17,537,868 17,537,868 17,537,868 17,537,868 17,537,868 17,537,868 17,537,868 17,537,868 -
4,176,655 4,176,655 4,176,655 4,176,655 4,176,655 4,176,655 4,176,655 4,176,655 4,176,655 4,176,655 4,176,655 -
107,281 107,281 107,281 107,281 107,281 107,281 107,281 107,281 107,281 107,281 107,281 107,281
1,083,535 1,083,535 1,083,535 1,083,535 1,083,535 1,083,535 1,083,535 1,083,535 1,083,535 1,083,535 1,083,535 1,083,535
- - - - - - - - - - 0 0
1,190,816 1,190,816 1,190,816 1,190,816 1,190,816 1,190,816 1,190,816 1,190,816 1,190,816 1,190,816 1,190,816 1,190,816
18,728,684 18,728,684 18,728,684 18,728,684 18,728,684 18,728,684 18,728,684 18,728,684 18,728,684 18,728,684 18,728,684 1,190,816
2,985,839 2,985,839 2,985,839 2,985,839 2,985,839 2,985,839 2,985,839 2,985,839 2,985,839 2,985,839 2,985,839 (1,190,816)
- - - - - - - - - - - -
2,985,839 2,985,839 2,985,839 2,985,839 2,985,839 2,985,839 2,985,839 2,985,839 2,985,839 2,985,839 2,985,839 (1,190,816)
918,377 3,904,215 6,890,054 9,875,892 12,861,731 15,847,569 18,833,408 21,819,246 24,805,085 27,790,923 30,776,762 33,762,600
3,904,215 6,890,054 9,875,892 12,861,731 15,847,569 18,833,408 21,819,246 24,805,085 27,790,923 30,776,762 33,762,600 32,571,784
3,904,215 6,890,054 9,875,892 12,861,731 15,847,569 18,833,408 21,819,246 24,805,085 27,790,923 30,776,762 33,762,600 32,571,784
60,702,999 57,226,318 53,749,637 50,272,956 46,796,274 43,319,593 36,874,162 30,428,731 23,983,299 17,537,868 - -
4,989,803 11,452,322 17,914,842 24,377,362 30,839,882 37,302,401 46,733,671 56,164,941 65,596,211 75,027,480 95,551,187 94,360,371
65,692,802 68,678,641 71,664,479 74,650,318 77,636,156 80,621,995 83,607,833 86,593,672 89,579,510 92,565,349 95,551,187 94,360,371
0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0
61,788,587 61,788,587 61,788,587 61,788,587 61,788,587 61,788,587 61,788,587 61,788,587 61,788,587 61,788,587 61,788,587 61,788,587
3,904,215 6,890,054 9,875,892 12,861,731 15,847,569 18,833,408 21,819,246 24,805,085 27,790,923 30,776,762 33,762,600 32,571,784
65,692,802 68,678,641 71,664,479 74,650,318 77,636,156 80,621,995 83,607,833 86,593,672 89,579,510 92,565,349 95,551,187 94,360,371
- - - - - - - - - - - -
2,985,839 2,985,839 2,985,839 2,985,839 2,985,839 2,985,839 2,985,839 2,985,839 2,985,839 2,985,839 2,985,839 (1,190,816)
- - - - - - - - - - - -
3,476,681 3,476,681 3,476,681 3,476,681 3,476,681 3,476,681 6,445,431 6,445,431 6,445,431 6,445,431 17,537,868 -
6,462,520 6,462,520 6,462,520 6,462,520 6,462,520 6,462,520 9,431,270 9,431,270 9,431,270 9,431,270 20,523,707 (1,190,816)
- - - - - - - - - - - -
(1,679,112) - - - - - - - - - - -
(1,679,112) - - - - - - - - - - -
4,783,408 6,462,520 6,462,520 6,462,520 6,462,520 6,462,520 9,431,270 9,431,270 9,431,270 9,431,270 20,523,707 (1,190,816)
6,462,520 6,462,520 6,462,520 6,462,520 6,462,520 6,462,520 9,431,270 9,431,270 9,431,270 9,431,270 20,523,707 94,360,371
4,783,408 6,462,520 6,462,520 6,462,520 6,462,520 6,462,520 9,431,270 9,431,270 9,431,270 9,431,270 20,523,707 94,360,371
206,395 4,989,803 11,452,322 17,914,842 24,377,362 30,839,882 37,302,401 46,733,671 56,164,941 65,596,211 75,027,480 95,551,187
4,989,803 11,452,322 17,914,842 24,377,362 30,839,882 37,302,401 46,733,671 56,164,941 65,596,211 75,027,480 95,551,187 94,360,371
19% 19% 19% 19% 19% 19% 19% 19% 19% 19% 19% 0%
14% 14% 14% 14% 14% 14% 14% 14% 14% 14% 14% 0%
- - - - - - - - - - - -
5% 4% 4% 4% 4% 4% 4% 3% 3% 3% 3% -1%
5% 4% 4% 4% 4% 4% 4% 3% 3% 3% 3% -1%
0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
Ansaar Management Company
Affordable Housing Project
Feasibility Study
Rupees, unless stated otherwise
Workings
Product Cost Allocation
Beginning Inventory Balance
Land Cost
Land acquisition closing cost
Infrastructural Development
Cost of Houses Construction
Markup on RF for Direct Costs
Total
Less: Cost of Sales
Ending Inventory Balance
Breakeven Analysis
Breakeven Units
Unitary Analysis
Number of Housing Units (total sellable area / unit size)
Sale price per unit
Direct cost per unit
31-Jan-14 28-Feb-14 31-Mar-14 30-Apr-14 31-May-14 30-Jun-14 31-Jul-14 31-Aug-14 30-Sep-14 31-Oct-14 30-Nov-14 31-Dec-14
64,179,681 60,702,999 57,226,318 53,749,637 50,272,956 46,796,274 43,319,593 36,874,162 30,428,731 23,983,299 17,537,868 -
- - - - - - - - - - - -
- - - - - - - - - - - -
2,968,750 2,968,750 2,968,750 2,968,750 2,968,750 2,968,750 - - - - - -
11,092,437 11,092,437 11,092,437 11,092,437 11,092,437 11,092,437 11,092,437 11,092,437 11,092,437 11,092,437 - -
0 0 0 0 0 0 0 0 0 0 - -
78,240,868 74,764,186 71,287,505 67,810,824 64,334,143 60,857,461 54,412,030 47,966,599 41,521,168 35,075,736 17,537,868 -
17,537,868 17,537,868 17,537,868 17,537,868 17,537,868 17,537,868 17,537,868 17,537,868 17,537,868 17,537,868 17,537,868 -
60,702,999 57,226,318 53,749,637 50,272,956 46,796,274 43,319,593 36,874,162 30,428,731 23,983,299 17,537,868 - -
198 198 198 198 198 198 198 198 198 198 198 -
Ansaar Management Company
Affordable Housing Project Rupees, unless stated otherwise
Feasibility Study
Customer's Mortgage Loan Amortization
Home Price 570,006
Loan Amount 399,004
Down Payment 171,002
Markup Rate 12.88%
Customer's Minimum Income 19,765
Period
(in month)
Beginning
Loan
Liability
Monthly
Payment (EMI)
Markup Principal
Ending
Loan
Liability
- - - - - 399,004
1 399,004 5,929 4,283 1,647 397,358
2 397,358 5,929 4,265 1,664 395,693
3 395,693 5,929 4,247 1,682 394,011
4 394,011 5,929 4,229 1,700 392,311
5 392,311 5,929 4,211 1,719 390,592
6 390,592 5,929 4,192 1,737 388,855
7 388,855 5,929 4,174 1,756 387,100
8 387,100 5,929 4,155 1,774 385,325
9 385,325 5,929 4,136 1,794 383,531
10 383,531 5,929 4,117 1,813 381,719
11 381,719 5,929 4,097 1,832 379,886
12 379,886 5,929 4,077 1,852 378,035
13 378,035 5,929 4,058 1,872 376,163
14 376,163 5,929 4,037 1,892 374,271
15 374,271 5,929 4,017 1,912 372,359
16 372,359 5,929 3,997 1,933 370,426
17 370,426 5,929 3,976 1,953 368,473
18 368,473 5,929 3,955 1,974 366,498
19 366,498 5,929 3,934 1,996 364,503
20 364,503 5,929 3,912 2,017 362,486
110 61,211 5,929 657 5,272 55,938
111 55,938 5,929 600 5,329 50,610
112 50,610 5,929 543 5,386 45,223
113 45,223 5,929 485 5,444 39,779
114 39,779 5,929 427 5,502 34,277
115 34,277 5,929 368 5,561 28,716
116 28,716 5,929 308 5,621 23,094
117 23,094 5,929 248 5,681 17,413
118 17,413 5,929 187 5,742 11,670
119 11,670 5,929 125 5,804 5,866
120 5,866 5,929 63 5,866 (0)
711,523 312,518 399,004