Financial Model_Hotel Industry
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Transcript of Financial Model_Hotel Industry
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SUMMARY OF INVESTMENT ANALYSIS
xyz HOTEL
Hotel name, location : Radisson Plaza, Udaipur
Year of opening : Jul-08
No of Rooms
Present 164
To be added 81
Total 245by 2009
Stable occupany : 80% In Year 2011 - 12
ARR-room in opening year : 14000 Rs.
ARR-Suites in opening year : 16000 Rs.
Average yearly increase in room rent : 5%
F&B as % of room revenues : 26% Average
Total investment : 204.33 Rs. in Crores
Cumulative revenues (2009-2017) : 1366.98 Rs. in Crores
Cumulative PBT (2009-2017) : 458.18 Rs. in Crores
PBT % : 34%
Profit after tax (2009-2017) : 313.37 Rs. in Crores
PAT % : 23%
Internal Rate of Return : 30.6%
RoI for 9 year period (2009-2017) : 21.3%
Total cash accumulation (2009-17) : 391.49 Rs. in Crores
Cash return on equity : 33%
Total management fee to be paid (2009-17) : 150.80 incl franchise, incentive, mgmt fee
as % of revenues : 11%
Returns to Investors
2010 - 11 (2.5 years) 175%
2011 - 12 (3.5 years) 210%
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COST OF THE PROJECT AND MEANS OF FINANCE (Rs. in Lakhs)
Sr. No. Particulars Expansion Total
I COST OF THE PROJECT
1 Land (incl. Development Cost) 3512.00 - 3512.002 Building (Hotel ) 2510.00 1060.00 3570.003 Plant & Equipment 3850.00 2150.00 6000.004 Misc. Fixed Assets 2540.00 2700.00 5240.005 Pre-operative Expenses 1617.25 90.00 1707.25
6 Preliminary Expenses 403.75 - 403.75
Total 14433.00 6000.00 20433.00
II MEANS OF FINANCE
1 Promoters' Equity 1,500.00 - 1,500.002 Share Premium 3,500.00 - 3,500.003 Quasi Equity of Promoters 2,083.00 - 2,083.004 Term Loans from Banks 7,350.00 - 7,350.005 Private Equity Funding - 6,000.00 6,000.00
Total 14,433.00 6,000.00 20,433.00
Debt Equity Ratio: 51:49 % - 36:64 %
Project under
Implementation
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Profit & Loss Account
Details 0
2008 - 09 2009 - 10 2010 - 11 2011 - 12 2012 - 13 2013 - 14
INCOME
Sales 5,485.14 12,549.81 13,980.13 15,340.70 16,135.48 17,224.48
EXPENDITURE
Cost of Services 1,932.56 3,841.46 4,973.74 5,641.89 6,203.37 6,726.38
Admin. Overheads 86.50 99.48 114.40 131.56 151.29 167.93
Selling & Dist Overheads 966.99 2,391.22 2,609.77 2,882.74 2,995.47 3,146.50
Total Expenditure 2,986.04 6,332.15 7,697.90 8,656.18 9,350.13 10,040.82
EBIDTA 2,499.10 6,217.66 6,282.23 6,684.52 6,785.35 7,183.66
Depreciation 526.73 827.58 827.58 827.58 872.62 918.34
PBIT 1,972.37 5,390.08 5,454.65 5,856.94 5,912.73 6,265.32
Interest on term loan 825.00 814.54 774.89 694.45 614.02 533.58
Interest Subsidy rebate 41.25 40.73 38.74 34.72 30.70
Profit Before Tax 1,147.37 4,616.79 4,720.48 5,201.23 5,333.44 5,762.45
Tax 96.55 1,307.13 1,434.09 1,655.43 1,722.48 1,887.71
Profit After Tax 1,050.82 3,309.66 3,286.40 3,545.80 3,610.96 3,874.74
EBDITA % 46% 50% 45% 44% 42% 42%
PAT % 19% 26% 24% 23% 22% 22%
NOTES:-
1) 164 rooms will be operational from 31st July, 2008
2) Repair & Maintenance estimated @ 5% of the cost of the building & Machinery is charged from 2010-11 onwards
From 2012-13 onwards repairs is taken @ 10%Therefore, the profibitability in these years is less as compared to 2008-09 and 2009-10
3) The Promoters have substantially funded the project out of their own funds, which has resulted into a better debt equity ratio.
Although the present planning of total rooms is at 245 (existing 164 + addl. 81 in 2009), the promoters have planned to increase the total rooms to 3
making use of the attractive cash accruals over the next 3-5 years, as well as use a part of it for other Hotels planned in the vicinity, for which land is
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Balance Sheet
Particulars FINANCIAL YEAR ENDED 31ST MARCH
2007-08 2008 - 09 2009 - 10 2010 - 11 2011 - 12 2012 - 13 2013 - 14
Share Capital 1,500.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00
Share Premium 3,500.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00
Quasi Capital 2,083.00 2,083.00 1,333.00 833.00 583.00 333.00 -
Reserves & Surplus - 1,050.82 4,360.48 7,401.56 10,702.04 14,067.68 17,574.44 2
Networth (x) 7,083.00 14,133.82 16,693.48 19,234.56 22,285.04 25,400.68 28,574.44 3
Secured Loan from banks 7,350.00 7,283.28 7,156.04 6,441.04 5,726.04 5,011.04 4,296.04
CAPITAL EMPLOYED (x) 14,433.00 21,417.10 23,849.52 25,675.60 28,011.08 30,411.72 32,870.48 3
Fixed Assets
Gross Block 14,029.25 20,433.00 20,433.00 20,433.00 20,433.00 21,433.00 22,448.00 2
Depreciation - 526.73 1,354.31 2,181.89 3,009.47 3,882.09 4,800.43
Net Block (a) 14,029.25 19,906.28 19,078.70 18,251.11 17,423.53 17,550.91 17,647.58 1
Current Assets (b) 403.75 1,524.27 4,795.97 7,452.52 10,616.78 12,892.27 15,259.35 1
Inventory - 362.35 720.27 932.58 1,057.85 1,163.13 1,261.20
Debtors - 228.55 522.91 582.51 639.20 672.31 717.69
Advance for Capital Goods - - - 1,000.00 1,015.00 985.00
Cash & Bank Balance 403.75 933.37 3,552.79 5,937.44 7,919.73 10,041.83 12,295.47 1
Less: Current Liabilities(c) - 13.45 25.15 28.04 29.24 31.46 36.45 Sundry Creditors - 13.45 25.15 28.04 29.24 31.46 36.45
Net Current Assets d (b-c) 403.75 1,510.82 4,770.82 7,424.48 10,587.54 12,860.81 15,222.90 1
Preliminary Expenses not w/off
CAPITAL DEPLOYED(a+d) 14,433.00 21,417.10 23,849.52 25,675.60 28,011.08 30,411.72 32,870.48 3
- - - - - - -
CURRENT RATIO
TOTAL CURRENT ASSETS(A) 403.75 1,524.27 4,795.97 7,452.52 10,616.78 12,892.27 15,259.35 1
CURRENT LIABILITIES
Sundry Creditors - 13.45 25.15 28.04 29.24 31.46 36.45
Loan Installments - 66.72 127.24 715.00 715.00 715.00 715.00
TOTAL (B) - 80.17 152.39 743.04 744.24 746.46 751.45
CURRENT RATIO (A / B) #DIV/0! 19.01 31.47 10.03 14.27 17.27 20.31
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Cash Flow Statement
Particulars FINANCIAL YEAR ENDED 31ST MA
2007 - 08 2008 - 09 2009 - 10 2010 - 11 2011 - 12 2012 -
Inflows:
Net Profit After Tax - 1,050.82 3,309.66 3,286.40 3,545.80 3,610.
Depreciation - 526.73 827.58 827.58 827.58 872.
Decrease in CWIP - - - - -
Increase in Capital 1,500.00 500.00 - - -
Increase in res. (Share Premium) 3,500.00 5,500.00
Increase in Capital Quazi 2,083.00 -
Increase in Loans 7,350.00 - - - Increase in Working Capital - - - - -
Increase in Current Liabilities - 13.45 11.70 2.89 1.20 2.
TOTAL INFLOWS: 14,433.00 7,590.99 4,148.94 4,116.87 4,374.58 4,485.
Outflows:
Increase in Fixed Assets 14,029.25 6,403.75
Capital Work In Progress - - - -
Advance for capital goods - - - 1,000.00 1,015.
Preliminary expenses - - - -
Decrease in Loans 66.72 127.24 715.00 715.00 715.
Increase in Current Assets - 590.90 652.28 271.90 181.97 138.
Dividend Payment (incl. DDT) 245.32 245.32 245.
Decrease in Quasi Capital 750.00 500.00 250.00 250.
TOTAL OUTFLOWS: 14,029.25 7,061.37 1,529.52 1,732.22 2,392.29 2,363.
Opening Cash Balance - 403.75 933.37 3,552.79 5,937.44 7,919.
Excess/Deficit 403.75 529.62 2 ,619.42 2,384.65 1,982.30 2,122.
Closing Cash Balance 403.75 933.37 3,552.79 5,937.44 7,919.73 10,041.
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26% 60
0
#VALUE!
Calculation of return on investment by a VC at different valuation for 26% stake in equity of the company
Direct Income Appropriations i.e. PAT/cash accruals to Equity Investment
(A) Equity Investment of Rs. 60 Crores for 26% stake.
1) PAT Basis
2008 - 09 2009 - 10 2010 - 11 2011 - 12 2012 - 13 2013 - 14 2014 - 15 2015 - 16 2016 - 17
PAT 1050.82 3309.66 3286.40 3545.80 3610.96 3874.74 4040.31 4202.59 4415
26% of PAT 273.21 860.51 854.46 921.91 938.85 1007.43 1050.48 1092.67 1148
% of Return 4.55 14.34 14.24 15.37 15.65 16.79 17.51 18.21 19
2) Cash Accural Basis
2008 - 09 2009 - 10 2010 - 11 2011 - 12 2012 - 13 2013 - 14 2014 - 15 2015 - 16 2016 - 17
PAT 1050.82 3309.66 3286.40 3545.80 3610.96 3874.74 4040.31 4202.59 4415
Depreciation 526.73 827.58 827.58 827.58 872.62 918.34 962.70 1005.49 1043
Cash Accurals 1577.55 4137.24 4113.98 4373.38 4483.58 4793.07 5003.01 5208.08 5459
26% of PAT 410.16 1075.68 1069.63 1137.08 1165.73 1246.20 1300.78 1354.10 1419% of Return 6.84 17.93 17.83 18.95 19.43 20.77 21.68 22.57 23
(B) Equity Investment of Rs. 40 Crores for 26% stake.
1) PAT Basis
2008 - 09 2009 - 10 2010 - 11 2011 - 12 2012 - 13 2013 - 14 2014 - 15 2015 - 16 2016 - 17
PAT 1050.82 3309.66 3286.40 3545.80 3610.96 3874.74 4040.31 4202.59 4415
26% of PAT 273.21 860.51 854.46 921.91 938.85 1007.43 1050.48 1092.67 1148
% of Return 6.83 21.51 21.36 23.05 23.47 25.19 26.26 27.32 28
2) Cash Accural Basis
2008 - 09 2009 - 10 2010 - 11 2011 - 12 2012 - 13 2013 - 14 2014 - 15 2015 - 16 2016 - 17
PAT 1050.82 3309.66 3286.40 3545.80 3610.96 3874.74 4040.31 4202.59 4415
Depreciation 526.73 827.58 827.58 827.58 872.62 918.34 962.70 1005.49 1043
Cash Accurals 1577.55 4137.24 4113.98 4373.38 4483.58 4793.07 5003.01 5208.08 5459
26% of PAT 410.16 1075.68 1069.63 1137.08 1165.73 1246.20 1300.78 1354.10 1419
% of Return 10.25 26.89 26.74 28.43 29.14 31.15 32.52 33.85 35
2008-2009- Hotel operational only for eight months with 164 rooms
2009- onwards - Hotel opeartional with 164 + 81 = 245
2010-11 onwards- repayment of TL & provision made for repairs & maintenance, in progression of 5% p.a. (1st year), 7% pa.(2nd year) & 10% p
PAT returns, if calcuated from the Hotel's full operations, effective 2009 onwards, the average for 8 years
On Rs. 60 Crores will be 16.40%on Rs. 40 will be 24.61%
AND
On Cash Accruals the numbers will be -
for Rs. 60 Crores- 20.35%
For Rs. 40 Crores- 30.53%
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0
0
Valuation on earning basis as Company is going to get listed
2008 - 09 2009 - 10 2010 - 11 2011 - 12 2012 - 13 2013 - 14 2014 - 15 2015 - 16 2016 - 17 Avg for
PAT (Rs in lacs) 1050.82 3309.66 3286.40 3545.80 3610.96 3874.74 4040.31 4202.59 4415.66
No of Shares (in lacs) 200.00 200.00 200.00 200.00 200.00 200.00 200.00 200.00 200.00
EPS (in Rs) 5.25 16.55 16.43 17.73 18.05 19.37 20.20 21.01 22.08
(in Rs) 52.54 165.48 164.32 177.29 180.55 193.74 202.02 210.13 220.78
Value of VC's Share (Rs in lacs) 2627.05 8274.14 8216.00 8864.50 9027.40 9686.84 10100.77 10506.47 11039.15
based on Pe of 10valuation is
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SNAPSHOT
FINANCIAL YEAR ENDED 31ST MARCH
Particulars 2008 - 09 2009 - 10 2010 - 11 2011 - 12 2012 - 13 2013 - 14 2014 - 15 20
Revenue 5,485.14 12,549.81 13,980.13 15,340.70 16,135.48 17,224.48 17,913.01 18Expenditure 2,986.04 6,332.15 7,697.90 8,656.18 9,350.13 10,040.82 10,480.62 10
PBDIT 2,499.10 6,217.66 6,282.23 6,684.52 6,785.35 7,183.66 7,432.39 7
Depreciation 526.73 827.58 827.58 827.58 872.62 918.34 962.70 1
1,972.37 5,390.08 5,454.65 5,856.94 5,912.73 6,265.32 6,469.69 6
nterest on Term Loan # 825.00 773.29 734.16 655.71 579.29 502.88 426.46
1,147.37 4,616.79 4,720.48 5,201.23 5,333.44 5,762.45 6,043.23 6
Taxes 96.55 1,307.13 1,434.09 1,655.43 1,722.48 1,887.71 2,002.92 2
NPAT 1,050.82 3,309.66 3,286.40 3,545.80 3,610.96 3,874.74 4,040.31 4
Dividend Payments - - 245.32 245.32 245.32 367.98 367.98
Cash Accurals 1,577.55 4,137.24 3,868.66 4,128.06 4,238.26 4,425.09 4,635.03 4
Repayment of Term Loan 66.72 127.24 715.00 715.00 715.00 715.00 715.00
Networth 14,133.82 16,693.48 19,234.56 22,285.04 25,400.68 28,574.44 32,246.76 36
Secured Loans 7,283.28 7,156.04 6,441.04 5,726.04 5,011.04 4,296.04 3,581.04 2
Debt equity Ratio (%) 34:66% 30:70% 26:74% 22:78% 19:81% 15:85% 12:88% 9:
DSCR - - 3.28 3.60 3.84 4.27 4.67 5
Avg. DSCR 4.36
Net Margins (NP/Gross Revenue) 19% 26% 24% 23% 22% 22% 23% 2
Interest on Term Loan is taken after incl. rebate i.e. Interest Subsidy
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f&b to room revenue 35.92% 26.17% 25.94% 24.15%
ROCKWOOD HOTELS & R
REVENUE ESTIMATE
Details FINANCI
2008 - 09 2009 - 10 2010 - 11 2011 - 12
TOTAL REVENUE 548,514,000 1,254,981,325 1,398,012,506 1,534,070,107
Room Rent 359,424,000 922,329,450 1,037,620,631 1,162,135,107
Standard Rooms 174,720,000 604,691,850 680,278,331 761,911,731
Suits 9,984,000 17,169,600 19,315,800 21,633,696
Club rooms 87,360,000 150,234,000 169,013,250 189,294,840
Super Deluxe rooms 87,360,000 150,234,000 169,013,250 189,294,840
Total Room Revenue 359,424,000 922,329,450 1,037,620,631 1,162,135,107
SPA
Spa Revenue 60,000,000 91,250,000 91,250,000 91,250,000
F&B Revenue 129,090,000 241,401,875 269,141,875 280,685,000
Restaurant 17,010,000 40,651,875 40,651,875 44,347,500
Lunch 5,040,000 12,045,000 12,045,000 13,140,000
Dinner 7,560,000 18,067,500 18,067,500 19,710,000
Snacks 1,890,000 4,516,875 4,516,875 4,927,500
Breakfast 2,520,000 6,022,500 6,022,500 6,570,000
Restaurant Revenue 17,010,000 40,651,875 40,651,875 44,347,500
Bar 8,400,000 20,075,000 23,725,000 25,550,000
Lunch 1,680,000 4,015,000 4,745,000 5,110,000
Dinner 2,520,000 6,022,500 7,117,500 7,665,000
Service/Other income 4,200,000 10,037,500 11,862,500 12,775,000
Bar Revenue 8,400,000 20,075,000 23,725,000 25,550,000
Party Hall 103,680,000 180,675,000 204,765,000 210,787,500
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ASSUMPTION SHEET
Details Operational Period
2007-08 2008 - 09 2009 - 10 2010 - 11 2011 - 12 2012 - 13 2013 - 1
No. of working Days 240 365 365 365 365 36
Standard rooms 80 161 161 161 161 16
Suites 4 4 4 4 4Club Rooms 40 40 40 40 40 4
Super Deluxe Rooms 40 40 40 40 40 4
Total No. of Rooms - 164 245 245 245 245 24
Installed Occupancy for Standard Rooms - 19200 58765 58765 58765 58765 5876
Installed Occupancy for Suites - 960 1460 1460 1460 1460 146
Installed Occupancy for Club Rooms 9600 14600 14600 14600 14600 1460
Installed Occupancy for Super Deluxe Rooms 9600 14600 14600 14600 14600 1460
Total Occupancy - 39360 89425 89425 89425 89425 8942
Assumed Capacity Utilisation - 65% 70% 75% 80% 80% 80
-
Occupancy for Standard Rooms 12480 41136 44074 47012 47012 4701
Occupancy for Suites 624 1022 1095 1168 1168 116
Occupancy for Club Rooms 6240 10220 10950 11680 11680 1168
Occupancy for Super Deluxe Rooms 6240 10220 10950 11680 11680 1168
Total Occupancy of all the rooms 25584 62598 67069 71540 71540 7154
Tariff Structure
For Std. rooms Rooms(Rs.) 14000 14700 15435 16207 17017 1786
For Suite /(AppartmentsRs.) 16000 16800 17640 18522 19448 2042
For Club Rooms 14000 14700 15435 16207 17017 1786
For Super Deluxe Rooms 14000 14700 15435 16207 17017 1786
SPA
No of persons 50 50 50 50 50 5
Occupancy of the SPA (no of persons) 12000 18250 18250 18250 18250 1825
Spa revenue per head (rs.) 5000 5000 5000 5000 5000 500
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ASSUMPTION SHEET
Details Operational Period
2007-08 2008 - 09 2009 - 10 2010 - 11 2011 - 12 2012 - 13 2013 - 1
Restaurant
Capacity( seats) - 150 150 150 150 150 15
Capacity Utilisation in % - 35% 55% 55% 60% 62% 70%
Lunch per head (Rs.) - 400 400 400 400 400 40
Dinner per head ( Rs.) - 600 600 600 600 600 60
Snacks per head (Rs.) - 150 150 150 150 150 15Breakfast per head (Rs.) - 200 200 200 200 200 20
Bar
Capacity- no. of persons - 50 50 50 50 50 5
Capacity Utilisation in % - 35% 55% 65% 70% 72% 82%
Lunch per head (Rs.) - 400 400 400 400 400 40
Dinner per head ( Rs.) - 600 600 600 600 600 60
Bar/Drinks income per head ( Rs.) - 1000 1000 1000 1000 1000 100
Party Hall
Capacity- no of persons that can be - 600 600 600 600 600 60
accomodated at any one time
Actual Capacity of the Hall 960 990 1020 1050 1050 105
Capacity Utilisation days in % - 45% 50% 55% 55% 60% 70%
Rate per head (Rs.) - 1000 1000 1000 1000 1000 100
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COST OF SERVICES
Details FINANCIAL YEAR ENDED 31ST MARCH
2007-08 2008 - 09 2009 - 10 2010 - 11 2011 - 12
TOTAL COST OF SERVICE
Cost of Consumables 64,545,000 120,700,938 134,570,938 140,342,500
Utilities - 56,552,400 129,563,320 143,866,438 157,841,761
- 1,701,000 4,065,188 4,065,188 4,434,750
- 54,851,400 125,498,133 139,801,251 153,407,011
Repair & Maintenance - 67,278,465 94,710,839
.
Room Maintenance Costs 35,942,400 92,232,945 103,762,063 116,213,511
Salaries & Wages - 36,216,000 41,648,400 47,895,660 55,080,009
Total Cost of Service - 193,255,800 384,145,603 497,373,563 564,188,619
Estimated at 50% of the earnings fromRestaurant, Bar, Food & Beveragesconsumed at Banquet Hall & Boardroom
Fuel - LPG & HSD estimated @10% of restaurant sales
Power- Estimated @10% of the TotalRevenue
Estimated @ 15% of the cost of theBuilding, Machinery, Furniture, sanitaryfittings, crockery uniformly beginning thesecond year.
Includes linen washing, dry cleaning,ironing, change of cosmetics andtoileteries, pest control etc. estimated @10% of the Room rent receipts.
Direct and indirect salaries payable tothe staff
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COST OF SERVICES
Details FINANCIAL YEAR ENDED 31ST MARCH
2007-08 2008 - 09 2009 - 10 2010 - 11 2011 - 12
Commissions & Discounts - 17,971,200 46,116,473 51,881,032 58,106,755
Advertisement - 17,971,200 46,116,473 51,881,032 58,106,75
Total Selling & Dist. Exp. - 35,942,400 92,232,945 103,762,063 116,213,511
Administrative Expenses - 8,650,000 9,947,500 11,439,625 13,155,569
Total Administrative Exp. - 8,650,000 9,947,500 11,439,625 13,155,569
Payment to Raddissons:
Gross Room Rent 359,424,000 922,329,450 1,037,620,631 1,162,135,107
1) Royalty @ 3 % 10,782,720 27,669,884 31,128,619 34,864,053
2) Marketing Fees @ 2.5 % 8,985,600 23,058,236 25,940,516 29,053,378
3) Reservation fee of @ 1% 3,594,240 9,223,295 10,376,206 11,621,351
4) Third Party Reservation
@ $4.10 per reservation 0 0 0 0
Payment to Raddissons 23,362,560 59,951,414 67,445,341 75,538,782
Payment to Banyan Tree Spa :
Spa Revenue 60,000,000 91,250,000 91,250,000 91,250,0001) Basic Mgt Fee
7% of spa revenue 4,200,000 6,387,500 6,387,500 6,387,500
2) Incentive Fee
10% of Gross Operating Profit 29,393,560 77,813,012 80,644,121 87,396,781
3) Furn. Fittings & equip. Contb. 1,800,000 2,737,500 2,737,500 2,737,500
3% of Spa Revenue
4) Technical asst.
US$ 50000 (US$1= Rs 40) 2,000,000
Payment to Banyan Tree Spa : 37,393,560 86,938,012 89,769,121 96,521,781
Payable to travel agents and other booking agents and payable to
Raddisons estimated @ 5% of theRoom Rent.
Estimated @5% of the room rent tocover Brochures, meetings,conferences, Media, Travel Agent etc.
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Term Loan Repayment Schedule
Quarter Balance Principal Interest @ Balance Principal Intere
Outstanding Repayment 11.25% Outstanding Repayment 11.2
Rs. 5750 Lakhs Loan Rs. 1600 Lakhs Loan
1st 5,750.00 - 161.72 1,600.00
2008-09 2nd 5,750.00 - 161.72 1,600.00 22.24
3rd 5,750.00 - 161.72 1,577.76 22.24
4th 5,750.00 - 161.72 1,555.52 22.24
5th 5,750.00 - 161.72 1,533.28 22.24
2009-10 6th 5,750.00 - 161.72 1,511.04 35.00
7th 5,750.00 - 161.72 1,476.04 35.00
8th 5,750.00 - 161.72 1,441.04 35.00
9th 5,750.00 143.75 161.72 1,406.04 35.00
2010-11 10th 5,606.25 143.75 157.68 1,371.04 35.00
11th 5,462.50 143.75 153.63 1,336.04 35.00 12th 5,318.75 143.75 149.59 1,301.04 35.00
13th 5,175.00 143.75 145.55 1,266.04 35.00
2011-12 14th 5,031.25 143.75 141.50 1,231.04 35.00
15th 4,887.50 143.75 137.46 1,196.04 35.00
16th 4,743.75 143.75 133.42 1,161.04 35.00
17th 4,600.00 143.75 129.38 1,126.04 35.00
18th 4,456.25 143.75 125.33 1,091.04 35.00
2012-13 19th 4,312.50 143.75 121.29 1,056.04 35.00
20th 4,168.75 143.75 117.25 1,021.04 35.00
21st 4,025.00 143.75 113.20 986.04 35.00
2013-14 22nd 3,881.25 143.75 109.16 951.04 35.00
23rd 3,737.50 143.75 105.12 916.04 35.00
24th 3,593.75 143.75 101.07 881.04 35.00
25th 3,450.00 143.75 97.03 846.04 35.00
2014-15 26th 3,306.25 143.75 92.99 811.04 35.00 27th 3,162.50 143.75 88.95 776.04 35.00
28th 3,018.75 143.75 84.90 741.04 35.00
29th 2,875.00 143.75 80.86 706.04 35.00
2015-16 30th 2,731.25 143.75 76.82 671.04 35.00
31st 2,587.50 143.75 72.77 636.04 35.00
32nd 2,443.75 143.75 68.73 601.04 35.00
33rd 2,300.00 143.75 64.69 566.04 35.00
2016-17 34th 2,156.25 143.75 60.64 531.04 35.00
35th 2,012.50 143.75 56.60 496.04 35.00
36th 1,868.75 143.75 52.56 461.04 35.00
37rd 1,725.00 143.75 48.52 426.04 35.00
2017-18 38th 1,581.25 143.75 44.47 391.04 35.00
39th 1,437.50 143.75 40.43 356.04 35.00
40th 1,293.75 143.75 36.39 321.04 35.00
41st 1,150.00 143.75 32.34 286.04 35.00 2018-19 42th 1,006.25 143.75 28.30 251.04 35.00
43rd 862.50 143.75 24.26 216.04 35.00
44th 718.75 143.75 20.21 181.04 35.00
45th 575.00 143.75 16.17 146.04 35.00
2019-20 46th 431.25 143.75 12.13 111.04 35.00
47th 287.50 143.75 8.09 76.04 35.00
48th 143.75 143.75 4.04 41.04 41.04
Total Interest payment
Interest paid during construction period
Interest payment charged to Profit and Loss Account
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Depreciation schedule (Regular)
Particulars WDV Rate FINANCIAL YEAR ENDED 3
2007-08 2008 - 09 2009 - 10 2010 - 11 2011 - 12
Land 3,512.00 3,512.00 3,512.00 3,512.00 3,512.00
Building 3.34%
Opening Balance - 2,510.00 3,570.00 3,570.00 3,570.00
Additions 2,510.00 1,060.00 - - -
Total(a) 2,510.00 3,570.00 3,570.00 3,570.00 3,570.00
Deductions - - - - -
GROSS BLOCK 2,510.00 3,570.00 3,570.00 3,570.00 3,570.00
Depreciation till date - - 83.83 203.07 322.31
Dep for the year 83.83 119.24 119.24 119.24
Total Depreciation - 83.83 203.07 322.31 441.55
Net Block 2,510.00 3,486.17 3,366.93 3,247.69 3,128.45
Plant & Machinery 5.28%
Opening Balance - 2,350.00 4,366.76 4,366.76 4,366.76
Additions 2,350.00 2,016.76 - -
Total(a) 2,350.00 4,366.76 4,366.76 4,366.76 4,366.76
Deductions - - - - -
GROSS BLOCK 2,350.00 4,366.76 4,366.76 4,366.76 4,366.76
Depreciation till date - - 124.08 354.65 585.21
Dep for the year 124.08 230.57 230.57 230.57
Total Depreciation - 124.08 354.65 585.21 815.78
Net Block 2,350.00 4,242.68 4,012.12 3,781.55 3,550.99
Other Misc Asets 5.28%
Opening Balance - 1,540.00 4,151.17 4,151.17 4,151.17
Additions 1,540.00 2,611.17 - - -
Total(a) 1,540.00 4,151.17 4,151.17 4,151.17 4,151.17
Deductions - - - - - GROSS BLOCK 1,540.00 4,151.17 4,151.17 4,151.17 4,151.17
Depreciation till date - - 81.31 300.49 519.68
Dep for the year 81.31 219.18 219.18 219.18
Total Depreciation - 81.31 300.49 519.68 738.86
Net Block 1,540.00 4,069.86 3,850.68 3,631.50 3,412.32
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Depreciation schedule (Regular)
Particulars WDV Rate FINANCIAL YEAR ENDED 3
2007-08 2008 - 09 2009 - 10 2010 - 11 2011 - 12
Furniture Fixture 9.50%
Opening Balance - 1,500.00 1,633.24 1,633.24 1,633.24 Additions 1,500.00 133.24 - -
Total(a) 1,500.00 1,633.24 1,633.24 1,633.24 1,633.24
Deductions - - - - -
GROSS BLOCK 1,500.00 1,633.24 1,633.24 1,633.24 1,633.24
Depreciation till date - - 142.50 297.66 452.82
Dep for the year 142.50 155.16 155.16 155.16
Total Depreciation - 142.50 297.66 452.82 607.97
Net Block 1,500.00 1,490.74 1,335.58 1,180.42 1,025.27
Vehicles 9.50%
Opening Balance - 1,000.00 1,088.83 1,088.83 1,088.83
Additions 1,000.00 88.83 - -
Total(a) 1,000.00 1,088.83 1,088.83 1,088.83 1,088.83
Deductions - - - - -
GROSS BLOCK 1,000.00 1,088.83 1,088.83 1,088.83 1,088.83
Depreciation till date - - 95.00 198.44 301.88
Dep for the year 95.00 103.44 103.44 103.44
Total Depreciation - 95.00 198.44 301.88 405.32
Net Block 1,000.00 993.83 890.39 786.95 683.51
Total Gross Block 12,412.00 18,322.00 18,322.00 18,322.00 18,322.00 1
Total Depreciation - 526.73 1,354.31 2,181.89 3,009.47
Net Block 12,412.00 17,795.27 16,967.69 16,140.11 15,312.53 1
12,412.00 17,795.27 16,967.69 16,140.11 15,312.53 1
Depreciation for the year - 526.73 827.58 827.58 827.58
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Depreciation schedule (Income Tax)
Particulars WDV Rate FINANCIAL YEAR ENDED 31ST
2007-08 2008 - 09 2009 - 10 2010 - 11 2011 - 12 2012
Land 3,512.00 3,512.00 3,512.00 3,512.00 3,512.00 3,51
Building 10%
Opening Balance - 2,510.00 2,962.00 2,057.80 1,852.02 1,66
Additions 2,510.00 1,060.00 - - - 40
Total(a) 2,510.00 3,570.00 2,962.00 2,057.80 1,852.02 2,06
Deductions - - - - -
GROSS BLOCK 2,510.00 3,570.00 2,962.00 2,057.80 1,852.02 2,06
Depreciation till date - 251.00 608.00
Dep for the year 251.00 357.00 296.20 205.78 185.20 20
Total Depreciation 251.00 608.00 904.20
Net Block 2,259.00 2,962.00 2,057.80 1,852.02 1,666.82 1,86
Plant & Machinery 15%15%
Opening Balance - 1,997.50 3,412.12 2,900.30 2,465.26 2,09
Additions 2,350.00 2,016.76 - - 60
Total(a) 2,350.00 4,014.26 3,412.12 2,900.30 2,465.26 2,69
Deductions 2150 - - - - -
GROSS BLOCK 2,350.00 4,014.26 3,412.12 2,900.30 2,465.26 2,69
Depreciation till date
Dep for the year 352.50 602.14 511.82 435.05 369.79 40
Total Depreciation
Net Block 1,997.50 3,412.12 2,900.30 2,465.26 2,095.47 2,29
Misc. Fixed Assets 15%
15%
Opening Balance - 1,309.00 3,332.15 2,832.33 2,407.48 2,04Additions 1,540.00 2,611.17 - - -
Total(a) 1,540.00 3,920.17 3,332.15 2,832.33 2,407.48 2,04
Deductions - - - - -
GROSS BLOCK 1,540.00 3,920.17 3,332.15 2,832.33 2,407.48 2,04
Depreciation till date
Dep for the year 231.00 588.03 499.82 424.85 361.12 30
Total Depreciation
Net Block 1,309.00 3,332.15 2,832.33 2,407.48 2,046.36 1,73
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Depreciation schedule (Income Tax)
Particulars WDV Rate FINANCIAL YEAR ENDED 31ST M
2007-08 2008 - 09 2009 - 10 2010 - 11 2011 - 12 2012
Furniture Fixture 10.00%
Opening Balance - 1,350.00 1,334.91 1,201.42 1,081.28 97
Additions 1,500.00 133.24 - - -
Total(a) 1,500.00 1,483.24 1,334.91 1,201.42 1,081.28 97
Deductions - - - - -
GROSS BLOCK 1,500.00 1,483.24 1,334.91 1,201.42 1,081.28 97
Depreciation till date
Dep for the year 150.00 148.32 133.49 120.14 108.13 9
Total DepreciationNet Block 1,350.00 1,334.91 1,201.42 1,081.28 973.15 87
Vehicles 15.00%
Opening Balance - 850.00 798.00 678.30 576.56 49
Additions 1,000.00 88.83 - -
Total(a) 1,000.00 938.83 798.00 678.30 576.56 49
Deductions - - - - -
GROSS BLOCK 1,000.00 938.83 798.00 678.30 576.56 49
Depreciation till date
Dep for the year 150.00 140.82 119.70 101.75 86.48 7
Total Depreciation
Net Block 850.00 798.00 678.30 576.56 490.07 41
Depreciation for the year 1,134.50 1,836.31 1,561.03 1,287.56 1,110.72 1,08
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0
Computation of Land and Building Construction Cost:
(Rs. in Lakhs)
Tota
Srl No. Particulars Earlier project Expansion Project Co4 Miscelleneous fixed assets 2,540.00 2
Expansion
New MFA 2700 2
Total 2,540.00 2,700.00 5
5 Preliminary Expenses 403.75
6 Pre-Operative Expenses 1,617.25 1
For Expansion 90.00
Total 2,021.00 90.00 2
TOTAL PROJECT COST 12,433.00 8,000.00 20
Vehicles, Guest Room Furniture and Interiors,Public area Furniture and Interior, CustomeryHouse Furnitures and Sundry Fixed Assets.
Company formation Expenses, Cost of FeasibilityStudies, Architects and Hotel consultation Fees,Project Management Fees, Brokerage andCommission on Capital Issue, other Capital IssueExpenses, Advertisement, Printing, Stationery, andLegal Expenses etc.
Deposit - EB, Sales Tax, Telephones, Customs etcEstablishment Expenses, Rent, Rates & Taxes,Travelling Expenses, Insurance, Initial PromotionCampaign, Lease Rentals, Interest duringconstruction period.
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Details of Pre-operative Expenses
(Rs. in Lakh
Srl No. Particulars Amou
130
2 Loan application processing fee @ 1% of the loan amount of Rs.7350.00 lakhs 73
3 Interest on Term Loan during construction period for a period of 16 months 1102
4 Architect fee@ 0.75% of project cost 47.
5 Consultants fees 0.25% of the project cost 36
6 Lump sum Royalty to Raddisons 12(Pre-commissioning fees)
7 Technical fees to Raddissons 17
8 Travelling Expenses 78
9 Insurance 80
10 Advertisements 90
11 Legal Charges & Other incedental expenses 75
12 Initial Promotion Expenses 100
13 Other Misc expenses 278
Total 2021
Expenses incured for preparation of Project Report, Printing of Memorandum andincrease in Share capital
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Calcualtion of working capital
(Rs. in Lakhs)
Particualrs No. of Months FINANCIAL YEAR ENDED 31ST MARCH
level 2007-08 2008 - 09 2009 - 10 2010 - 11 2011 - 12 2012 - 13 2013 - 14
Current Assets
Raw Material Stocks 2.25 0.00 0.00 362.35 720.27 932.58 1057.85 1163.13 1261.20
Debtors 0.5 0.00 0.00 228.55 522.91 582.51 639.20 672.31 717.69
Total Current Assets 0.00 0.00 590.90 1243.18 1515.08 1697.05 1835.44 1978.88
Current Liabilities
Sundry Creditors 0.25 0.00 0.00 13.45 25.15 28.04 29.24 31.46 36.45
Total Current Liabilities 0.00 0.00 13.45 25.15 28.04 29.24 31.46 36.45
Net Current Assets 0.00 0.00 577.46 1218.04 1487.05 1667.81 1803.98 1942.43
Margin@25% 0.00 0.00 144.36 304.51 371.76 416.95 450.99 485.61
Bank Borrowings 0.00 0.00 433.09 913.53 1115.28 1250.86 1352.98 1456.82
Int. On Bank Borrowings@12% 0.00 0.00 51.97 109.62 133.83 150.10 162.36 174.82
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Rockwood Hotal Resorts Ltd
Administrative Expenses
Srl No. Particulars Amount
1 Printing & Stationery 1,500,000
2 Communication Cost 1,200,000
3 Insurance 750,000
4 Rent Rates & Taxes 600,000
5 Books & Periodicals 100,000
6 License Fees 1,000,000
7 Travelling Expenses 1,000,000
8 Stores, Spares & upkeep 1,500,000
9 Misc. Expenses 1,000,000
Total Annual Exp. 8,650,000
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ROCKWOOD HOTELS & RESORTS LIMITED
0
Computation of Salaries & wages
Srl No. Position Nos. Salary Annual Salary
Per month
1 General Manager 2 100,000 2,400,000
2 Resident Manager 6 50,000 3,600,000
3 Department Head 18 30,000 6,480,000
4 Supervisors 25 15,000 4,500,000
5 Semi Skilled Staff 60 10,000 7,200,000
6 Unskilled Staff 80 5,000 4,800,000
7 Directors Remuneration 1 100,000 1,200,000
Total Annual Wages 30,180,000
Add: 20% Fringe Benefits 6,036,000
Annaul Compensation Package 36,216,000
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Calculation of Tax
FINANCIAL YEAR ENDED 31ST MARCH
Particulars 2008 - 09 2009 - 10 2010 - 11 2011 - 12 2012 - 13 2013 - 14 2014 - 15
Profit before Tax 1,147.37 4,616.79 4720.48 5201.23 5333.44 5762.45 6043.23
Add: Depreciation 526.73 827.58 827.58 827.58 872.62 918.34 962.70
Sub Total (a) 1,674.10 5,444.37 5548.06 6028.81 6206.06 6680.78 7005.93
Ded: IT Depreciation 1,836.31 1,561.03 1287.56 1110.72 1088.78 1072.61 1055.48
Income as per IT (162.21) 3,883.34 4260.50 4918.09 5117.28 5608.17 5950.45
Tax @ 33.66% (54.60) 1,307.13 1,434.09 1,655.43 1,722.48 1,887.71 2,002.92
Minimum Alternate Tax:
Profit Before Tax 1,147.37 4,616.79 4,720.48 5,201.23 5,333.44 5,762.45 6,043.23
IT as per MAT @ 8.415% 96.55 388.50 397.23 437.68 448.81 484.91 508.54
IT considered in P/L A/c 96.55 1,307.13 1,434.09 1,655.43 1,722.48 1,887.71 2,002.92
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Debt Service Coverage Ratio
(Rs. in Lakhs)
FINANCIAL YEAR ENDED 31ST MARCH
Particualrs 2008 - 09 2009 - 10 2010 - 11 2011 - 12 2012 - 13 2013 - 14 2014 - 1
Profit after Tax 1,050.82 3,309.66 3,286.40 3,545.80 3,610.96 3,874.74 4,040.3
Add:
Depreciation 526.73 827.58 827.58 827.58 872.62 918.34 962.70
Interest on Term Loan 825.00 814.54 774.89 694.45 614.02 533.58 453.1
Total Inflow (A) 2,402.55 4,951.78 4,888.87 5,067.84 5,097.60 5,326.65 5,456.1
Interest on Term Loans 825.00 814.54 774.89 694.45 614.02 533.58 453.1
Instalment of Term Loan 66.72 127.24 715.00 715.00 715.00 715.00 715.0
Total Outflow (B) 891.72 941.78 1,489.89 1,409.45 1,329.02 1,248.58 1,168.1
Annual DSCR (A/B) - - 3.28 3.60 3.84 4.27 4.67
Average DSCR 4.36
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0
Break Even Analysis(Rs. in Lakhs)
Particulars % FINANCIAL YEAR ENDED 31S
2008 - 09 2009 - 10 2010 - 11 2011 - 12 2012 - 13
Net Sales 5,485.14 12,549.81 13,980.13 15,340.70 16,135.48
VARIABLE COSTS
Consumables 645.45 1,207.01 1,345.71 1,403.43 1,510.28
Utilities 80% 452.42 1,036.51 1,150.93 1,262.73 1,327.50
Repair & Maintenance 40% - - 269.11 378.84 472.02
Room Maintenance Cost 20% 71.88 184.47 207.52 232.43 244.05
Commission & Discounts 100% 179.71 461.16 518.81 581.07 610.12
Advertisement 25% 44.93 115.29 129.70 145.27 152.53
Salaries & Wages 20% 83.30 95.79 110.16 126.68
Administrative Overheads 25% 21.63 24.87 28.60 32.89 37.82
Total Variable Costs 1,416.02 3,112.60 3,746.18 4,146.81 4,481.00
Contribution 4,069.12 9,437.21 10,233.94 11,193.89 11,654.47
FIXED COSTS
utilities 20% 113.10 259.13 287.73 315.68 331.87
Repair & Maintenance 60% - - 403.67 568.27 708.03 Room Maintenance Cost 80% 287.54 737.86 830.10 929.71 976.19
Advertisement 75% 143.77 368.93 415.05 464.85 488.10
Salaries & Wages 80% - 333.19 383.17 440.64 506.74
Administrative Expenses 75% 64.88 74.61 85.80 98.67 113.47
Int. On term loans 100% 825.00 814.54 774.89 694.45 614.02
Depreciation 526.73 827.58 827.58 827.58 872.62
Total Fixed& Semi variable Costs 1,961.01 3,415.84 4,007.98 4,339.85 4,611.04
Profit Volume Ratio(Cont./Sales)% - - 73.20 72.97 72.23
Cash Break Even Rs. 2,850.31 5,700.86 6,926.58 7,659.08 8,219.42
Break Even Sales Rs. 3,377.03 6,528.44 7,754.16 8,486.66 9,092.04
BE Sales% 62% 52% 55% 55% 56%
Cash BE sales % 52% 45% 50% 50% 51%
55.91%
49.87%
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Annexure for the Information Memorandum
2013-14 2014-15 2015-16 2016-17
5,485.14
2,986.04 6,332.15 7,697.90 8,656.18 9,350.13
EBIDTA 2,499.10 6,217.66 6,282.23 6,684.52 6,785.35 7,183.66 7,432.39 7,674.59 7,991.58
526.73 827.58 827.58 827.58 872.62 918.34 962.70
PBIT 1,972.37 5,390.08 5,454.65 5,856.94 5,912.73 6,265.32 6,469.69 6,669.10 6,947.81
825.00 773.29 734.16 655.71 579.29 502.88 426.46 350.05 273.63
PBT 1,147.37 4,616.79 4,720.48 5,201.23 5,333.44 5,762.45 6,043.23 6,319.05 6,674.18
Tax 96.55
PAT 1,050.82 3,309.66 3,286.40 3,545.80 3,610.96 3,874.74 4,040.31 4,202.59 4,415.66
2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00
9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00
2,083.00 1,333.00 833.00 583.00 333.00 0.00 0.00 0.00 0.00
1,050.82 4,360.48 7,401.56
7,283.28 7,156.04 6,441.04 5,726.04 5,011.04 4,296.04 3,581.04 2,866.04 2,151.04
As on
31st
2008 2009 2010 - 2011 2012
GrossRevenues
12,549.81 13,980.13 15,340.70 16,135.48 17,224.48 17,913.01 18,585.67 19,483.58
TotalExpenditure
10,040.82
10,480.62
10,911.08
11,492.00
Depreciation
1,005.49 1,043.77
Interest
on termloansfrombanks
1,307.13 1,434.09 1,655.43 1,722.48 1,887.71 2,002.92 2,116.46 2,258.52
EquityCapital
SharePremium
QuasiEquity
Reserves&
Surplus
10,702.04
14,067.68
17,574.44
21,246.76
25,081.37
29,129.05
NetWorth
14,133.82
16,693.48
19,234.56
22,285.04
25,400.68
28,574.44
32,246.76
36,081.37
40,129.05
SecuredLoans