Marathon Tea Company Pvt. Ltd. Ashram Para, Siliguri Annexure-19

Prepared ;by CA Raajib Deb
Chartered Accountants
MARATHON TEA COMPANY PVT. LTD.

ASHRAM PARA, SILIGURI Annexure-19
PROJECTED FINANCIAL PARAMETERS Rs. In Lakh

1 2 3 4 5 6 7 8
1 2 3 4 5 6 7 8 9
SL. NO. PARTICULARS 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025 2025-2026 2026-2027
A. PROFITABILITY RATIOS:
Gross profit margin Ratio 27.75% 27.41% 31.86% 33.84% 35.94% 37.57% 38.35% 38.81% 39.17%
Net profit margin Ratio 2.25% 8.60% 15.76% 19.55% 23.21% 26.21% 27.58% 27.72% 27.66%
Return on assets 0.28% 4.83% 12.82% 19.16% 27.24% 36.61% 43.88% 49.44% 55.18%
Return on capital employed 0.28% 4.65% 11.32% 14.94% 18.27% 19.24% 17.53% 15.43% 13.74%
B. LIQUIDITY RATIOS:
Current Ratio 1.02 1.09 1.26 1.49 1.71 2.27 3.00 3.60 4.41
Quick Ratio 65.66 35.07 43.23 52.95 14.87 11.38 10.86 13.16 22.21
C. TURNOVER RATIOS:
Inventory turnover 4.40 4.91 5.75 5.79 5.85 5.88 5.90 5.85 5.79
Debtors turnover 4.06 4.06 4.06 4.06 4.06 4.37 4.19 4.14 4.14
Fixed Assets turnover 0.17 0.75 1.08 1.31 1.56 1.86 2.12 2.38 2.66
Total Assets turnover 0.14 0.52 0.67 0.71 0.72 0.71 0.65 0.59 0.54
D. LEVERAGE RATIOS:
Debt-equity Ratio 2.74 1.98 1.19 0.68 0.35 0.22 0.18 0.15 0.13
Debt Ratio
Interest coverage Ratio 3.45 3.60 5.32 7.56 11.94 26.57 342.43 #DIV/0!
Debt service coverage Ratio 2.10 1.15 1.44 1.63 1.81 2.08 5.40 - -
Page,,,,,,,,21 Contd……Page….22


1 2 3 4 5 6 7 8
1 2 3 4 5 6 7 8 9
E. SECURITY MARGIN: 1.53 1.68 1.95 2.48 3.83 11.88 #DIV/0!

WDV of Fixed Assets 450.74 403.72 362.59 326.50 294.77 266.81 242.13 220.27 200.88
TL Outstanding 295.45 240.85 186.25 131.65 77.05 22.45 - - -
Security Margin available 155.29 162.87 176.34 194.85 217.72 244.36 242.13 220.27 200.88
Security Margin % 34.45% 40.34% 48.63% 59.68% 73.86% 91.59% 100.00% 100.00% 100.00%
Average Security Margin % 59.37%
F. EFFICIENCY RATIO:
Net Sales to Total Tangible Assets 0.14 0.52 0.67 0.71 0.72 0.71 0.65 0.59 0.54
PBT to Total Tangible Assets 0.32% 4.45% 10.50% 13.79% 16.63% 18.69% 17.99% 16.27% 15.02%
Operating Cost to Sales 33.02% 30.25% 26.58% 26.34% 25.89% 25.71% 25.86% 26.37% 26.92%
Bank Finance to Current Assets 30.34% 55.57% 43.91% 35.92% 28.65% 23.25% 18.33% 14.88% 12.76%
Receivables / Gross Sales (Days) 90.00 90.00 90.00 90.00 90.00 83.53 87.09 88.24 88.24
Page,,,,,,,,22 Contd……Page….23

G. OTHER RATIOS:
NET SALES 75.95 302.01 393.36 426.69 461.21 496.93 513.53 523.80 534.28
%RISE/FALL ( Including Price Increment) 297.67% 30.25% 8.47% 8.09% 7.75% 3.34% 2.00% 2.00%
PBT 1.71 25.98 62.00 83.43 107.06 130.25 141.65 145.20 147.79
PBDIT 25.60 104.27 132.55 143.69 157.69 171.97 175.81 176.18 176.30
PAT 1.28 19.48 46.50 62.57 80.29 97.69 106.24 108.90 110.84
RETAINED PROFIT 1.28 19.48 46.50 62.57 75.29 90.69 98.24 99.90 100.84
CASH ACCRUALS 17.28 66.50 87.63 98.66 107.02 118.65 122.92 121.76 120.23
RM INVENTORY 0.10 0.35 0.38 0.41 0.45 0.48 0.49 0.50 0.51
MONTHS CONSUMPTION 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03
FG INVENTORY 16.38 59.24 65.76 70.88 75.91 81.36 83.74 86.20 88.78
MONTHS' SALES 2.59 2.35 2.01 1.99 1.97 1.96 1.96 1.97 1.99
RECEIVABLES 18.73 74.47 96.99 105.21 113.72 113.72 122.53 126.62 129.16
MONTHS' SALES 2.96 2.96 2.96 2.96 2.96 2.75 2.86 2.90 2.90
SUNDRY CREDITORS 0.68 2.47 2.68 2.90 14.14 24.38 35.44 38.51 27.58
MONTHS' PURCHASE 0.23 0.23 0.23 0.23 1.04 1.66 2.37 2.52 1.77
CAPITAL 120.00 120.00 120.00 120.00 120.00 120.00 120.00 120.00 120.00
FREE RESERVES
P & L A/C BALANCE 1.28 20.77 67.27 129.84 205.13 295.82 394.06 493.95 594.80
TANGIBLE NET WORTH 121.29 140.77 187.27 249.84 325.13 415.82 514.06 613.96 714.80
TOTAL OUTSIDE LIABILITIES 416.36 443.81 403.65 355.37 318.73 281.07 273.52 278.56 269.48
TERM LIABILITIES 332.65 278.05 223.45 168.85 114.25 91.80 91.80 91.80 91.80
NET FIXED ASSETS 450.74 403.72 362.59 326.50 294.77 266.81 242.13 220.27 200.88
NET WORKING CAPITAL 1.99 14.20 47.53 91.89 144.61 240.81 363.73 485.48 605.72
INVESTMENT OUTSIDE BUSINESS
TOL/TNW 1.79 1.76 1.35 0.98 0.73 0.53 0.44 0.38 0.33
(Taking U/L as quasi equity)
Page,,,,,,,,23

REPAYMENT OF TERM LOAN AND INTEREST Rs. In Lakh
A. TERM LOAN
Rate of Interest 9.60% 9.60% 9.60% 9.60% 9.60% 9.60% 9.60% 9.60% 9.60%
Opening Balance 300.00 295.45 240.85 186.25 131.65 77.05 22.45 - -
Addition -
Repayment 4.55 54.60 54.60 54.60 54.60 54.60 22.45 - -
Closing Balance 295.45 240.85 186.25 131.65 77.05 22.45 - - -
Interest 7.06 25.53 20.30 15.05 9.78 4.64 0.36 - -
B. CASH CREDIT
Rate of Interest 9.60% 9.60% 9.60% 9.60% 9.60% 9.60% 9.60% 9.60% 9.60%
Opening Balance - 26.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Addition 26.00 74.00 - - - - - - -
Repayment - - - - - - - -
Closing Balance 26.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Interest 0.83 5.75 9.12 9.12 9.12 9.12 9.12 9.12 9.12
A. TERM LOAN-EXISTING
Rate of Interest 16.00% 16.00% 16.00% 16.00% 16.00% 16.00% 16.00% 16.00% 16.00%
Opening Balance - - - - - - - -
Addition -
Repayment - - - - - - - - -
Closing Balance - - - - - - - - -
Interest - - - - - - - - -
Page,,,,,,,,24

ASHRAM PARA, SILIGURI Sechedule-3
SCHEDULE OF ESTIMATION OF SALES REALISATION , CAPACITY UTILISATION Rs. In Lakh
A. Installed Capacity Assumption / Estimation relating to Capacity utilisation

Installed Capacity of the unit per annum 120 MTN 70% Capacity utilisation has been assumed during the first year of operation, gradually with an
Working days in a month 25 increment of 5% every year. Tea usually produced for 10 months and capacity has been assessed
Working hours per shift 8 based on 250 productive days. The BEP in relation to installed capacity is 66.06 %, therefore at the
No.of Shift per day 1 very first year the unit will be able to reach BEP.
Working months per annum 10
Capacity Utilisation 70.00% 75.00% 80.00% 85.00% 90.00% 95.00% 95.00% 95.00% 95.00%
Production in MTN 84.00 300.00 320.00 340.00 360.00 380.00 380.00 380.00 380.00
B. Assumption / Estimation relating to Sales realisation

Finished products of a CTC Tea manufacturing unit is CTC Tea. Recovery % of Tea varies from 21.50% to 22% depending on various factors, we have assumed 21.50% recovery.
Sales Quantity in MTN 63.29 246.74 315.07 335.07 355.07 375.07 380.00 380.00 380.00
Sales Value 75.95 302.01 393.36 426.69 461.21 496.93 513.53 523.80 534.28
Average selling price per MTN Rs.120000 Rs.122400 Rs.124848 Rs.127345 Rs.129892 Rs.132490 Rs.135140 Rs.137843 Rs.140600
C. Assumption / Estimation relating to Raw Materials cost
Main raw materials for the CTC Tea manufacturing unit is Green Tea Leaves, which are adequately available in North Bengal, particularly in the area where the project will be situated. The price of the
raw materials vary depending on the production, from market survey it is seen that the Green Leaf price varies between Rs.9000 per MTN to Rs.14000 per MTN during the a year. We have assumed
Green Tea price Rs.9000 per MTN for estimating cost of raw materials, as majority green leaf will be procured from own or group plantation.
Cost of Raw Materials 35.25 128.41 139.71 151.41 163.53 176.06 179.58 183.18 186.84
Average cost of Raw Materials per MTN Rs.9000 Rs.9180 Rs.9364 Rs.9551 Rs.9742 Rs.9937 Rs.10135 Rs.10338 Rs.10545

SCHEDULE OF ESTIMATION OF PACKING MATERIALS, MANPOWER COST AND POWER AND FUEL COST Rs. In Lakh
D. Assumption / Estimation relating to Packing Materials cost

The finished products are packed in 38 Kg. bag. The present market price of poly bag is Rs.44.00 per piece bag along with liner.
Cost of Packing Materials 1.06 4.17 5.32 5.71 6.06 6.40 6.48 6.48 6.48
Average cost of Packign Materials per MTN Rs. 1260 Rs. 1389 Rs. 1663 Rs. 1681 Rs. 1682 Rs. 1683 Rs. 1705 Rs. 1705 Rs. 1705
E. Assumption / Estimation relating to Manpower cost

The typical modern Tea manufacturing unit requires less labourer. 13 Nos. man power are required for production and for administrative work 8 Nos. employee will be requiried,
which as per estimation based on the capacity utilisation of the unit. If in case capacity utilistion exceeds the assumption then additional casual labourer will be employed to fulfill the
manpower requirement.
Wages- Permanent 5.15 15.75 16.54 17.37 18.24 19.15 20.11 21.11 22.17
Wages- Temporary - 0.90 0.95 0.99 1.04 1.09 1.15 1.21 1.27
Salary - Permanent 4.71 14.41 15.13 15.88 16.68 17.51 18.39 19.31 20.27
F. Assumption / Estimation relating to Power and Fuel cost
As per rating of various Plant and Machineries and after considering the other power requirement we have estimated the connecting load of 500 KVA. As per capacity utilisation
average power costhas been calculated at present rate per unit of Rs.7.50 to be charged by WBSDCL for industrial connection. In order to cope with the power cut 2 hrs average daily
run of D.G Set of 415 KVA has been assumed. The fuel consumption of D.G Set is 50 Ltrs. Per hour and on an average 2 hrs run per day has been considered. Consumption of coal
has been assumed to be 900 gm Perk Kg. of Finished Goods @ Rs.9/- Per Kg.
Electricity Charges 4.57 19.05 20.23 21.41 22.60 23.78 23.78 23.78 23.78
Cost of Fuel for D.G. Set 0.58 2.48 2.64 2.81 2.97 3.14 3.14 3.14 3.14
Cost of Coal 7.0875 30.375 32.4 34.425 36.45 38.475 38.475 38.475 38.475

SCHEDULE OF ESTIMATION OF OTHER DIRECT COST, DEPRECIATION AND SELLNG AND ADMINISTRATIVERs.
COST
In Lakh
G. Assumption / Estimation relating to Other Direct cost

Other direct cost mainly consisting of Repair and Maintenance, Consumables, Transporation, Loading and Un loading etc. We have assumed 0.50 % of fixed assets as repair and
maintenance in the first year and gradually increasing by 1% and above as the machinery grow older, higher amount has to be spent on repair and maintenance. Assumption
relating to various other direct cost has been taken lumpsum
Repairs (in lacs) 4.67 5.13 5.65 6.21 6.83 7.52 8.27 9.10 10.01
Consumables 5.00 5.50 6.05 6.66 6.66 7.33 8.06 8.87 9.76
Misc. Factory Cost 3.00 3.30 3.63 3.99 3.99 4.39 4.83 5.31 5.84
Transportation 0.09 0.32 0.35 0.38 0.41 0.44 0.45 0.46 0.47
Other Direct Overhead - - - - - - - - -
H. Assumption / Estimation relating to Depreciation

The proposed unit is a Private Limited Company registered under the companies Act.2013. The rate of depreciation prescribed under the Companies Act. Has been considered for
preparation of Profit &Loss Account and for calculation of Income Tax Liability rate of Depreciation punder the Income Tax Act. Has been considered. Year wise depreciation are
as follows;
Depreciation under the Companies Act. 16.00 47.02 41.13 36.09 31.73 27.96 24.68 21.86 19.39
Dereciation under the I. T Act. 26.45 48.44 41.86 36.34 31.65 27.66 24.23 21.27 18.74
I. Assumption / Estimation relating to Selling and Administrative Exp & W-off

Various components of Selling and Administrative expenses have been assumed lumpsum keeping in view the volume and size of the unit. Which is growing year to year. Pre-
operative expenses has been distributed amongst Fixed Assets and Preliminary Expenses being written off in five years tenure.
Salary [ 5% increment every year] 4.71 14.41 15.13 15.88 16.68 17.51 18.39 19.31 20.27
Printing & Stationery 0.55 0.55 0.61 0.67 0.73 0.81 0.89 0.97 1.07
Postage & Telegram 0.22 0.22 0.24 0.27 0.29 0.32 0.35 0.39 0.43
Travelling Expenses 0.22 0.66 0.73 0.80 0.88 0.97 1.06 1.17 1.29
Selling Expenses- Brokerage 0.76 3.02 3.93 4.27 4.61 4.97 5.14 5.24 5.34

SCHEDULE OF ESTIMATION OF SELLNG AND ADMINISTRATIVE EXP. , INTEREST, TAX LIABILITY Rs. In Lakh
J. Assumption / Estimation relating to Selling and Administrative Exp.

Various components of Selling and Administrative expenses have been assumed lumpsum keeping in view the volume and size of the unit. Which is growing year to year.
Advertisement and Sales Promotion 0.55 0.55 0.61 0.67 0.73 0.81 0.89 0.97 1.07
Telephone Charges 0.18 0.55 0.61 0.67 0.73 0.81 0.89 0.97 1.07
Indirect power & fuel exp. 0.31 0.31 0.34 0.38 0.42 0.46 0.50 0.55 0.61
Rent , Rates & Taxes 0.55 0.55 0.61 0.67 0.73 0.81 0.89 0.97 1.07
Insurance 1.10 1.10 1.21 1.33 1.46 1.61 1.77 1.95 2.14
Freight and labour Charges 0.55 0.55 0.61 0.67 0.73 0.81 0.89 0.97 1.07
General Exp. 0.30 0.30 0.32 0.33 0.35 0.36 0.38 0.40 0.42
Financial Expenses 0.53 0.53 0.55 0.58 0.61 0.64 0.67 0.70 0.74
Vehicle running Expenses 0.24 0.72 0.79 0.87 0.95 1.05 1.15 1.27 1.39
K. Assumption / Estimation relating to Interest Exp.

The unit is an Agricultural processing Industry classified as an SSI unit. Being in Agro related Industry it deserve special rebate on account of rate of interest, we have assumed
9.6% rate of interest for estimating interest on Term Loan and Working Capital Finance.
Interest on Term Loan 7.06 25.53 20.30 15.05 9.78 4.64 0.36 - -
Interest on Working Capital Finance 0.83 5.75 9.12 9.12 9.12 9.12 9.12 9.12 9.12
Other Interest - - - - - - - - -
L. Assumption / Estimation relating to Income Tax Liability

Rate of Income Tax applicable to Corporate Assessee for the current Assessment Year i.e 25 % has been considered for estimation of Income Tax Liability. As deferred Income
Tax Liability do not have any significant impact on the over all financial position except for adjustment pupose, the same has been ignored.
Taxable Income after adjustment of Dep. 1.71 25.98 62.00 83.43 107.06 130.25 141.65 145.20 147.79
Income Tax Liability [rate 25%] 0.43 6.49 15.50 20.86 26.76 32.56 35.41 36.30 36.95

Marathon Tea Company Pvt. Ltd. Ashram Para, Siliguri Annexure-19

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Marathon Tea Company Pvt. Ltd. Ashram Para, Siliguri Annexure-19

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Prepared ;by CA Raajib Deb

MARATHON TEA COMPANY PVT. LTD.

PROJECTED FINANCIAL PARAMETERS Rs. In Lakh

MARATHON TEA COMPANY PVT. LTD.

PROJECTED FINANCIAL PARAMETERS Rs. In Lakh

E. SECURITY MARGIN: 1.53 1.68 1.95 2.48 3.83 11.88 #DIV/0!

MARATHON TEA COMPANY PVT. LTD.

PROJECTED FINANCIAL PARAMETERS Rs. In Lakh

MARATHON TEA COMPANY PVT. LTD.

REPAYMENT OF TERM LOAN AND INTEREST Rs. In Lakh

MARATHON TEA COMPANY PVT. LTD.

SCHEDULE OF ESTIMATION OF SALES REALISATION , CAPACITY UTILISATION Rs. In Lakh

A. Installed Capacity Assumption / Estimation relating to Capacity utilisation

B. Assumption / Estimation relating to Sales realisation

MARATHON TEA COMPANY PVT. LTD.

D. Assumption / Estimation relating to Packing Materials cost

E. Assumption / Estimation relating to Manpower cost

MARATHON TEA COMPANY PVT. LTD.

G. Assumption / Estimation relating to Other Direct cost

H. Assumption / Estimation relating to Depreciation

I. Assumption / Estimation relating to Selling and Administrative Exp & W-off

MARATHON TEA COMPANY PVT. LTD.

J. Assumption / Estimation relating to Selling and Administrative Exp.

K. Assumption / Estimation relating to Interest Exp.

L. Assumption / Estimation relating to Income Tax Liability

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