RCPL

ASSUMPTIONS

FORECAST BASIS Year 9

INCOME STATEMENT ASSUMPTIONS

EXHIBIT 1: VOLUMES SOLD

SOAPS (10gms PACKET) Variable Growth 337,500

HAIR COLOUR (100ml BOTTLE) Compounded Annual Growth 348,188

DETERGENTS (100ml BOTTLE) Variable Growth 182,813

EXHIBIT 2: SALES PRICE MOVEMENT

SOAPS (10gms PACKET) Variable Growth 45

HAIR COLOUR (100ml BOTTLE) Compounded Annual Growth 95

DETERGENTS (100ml BOTTLE) Variable Growth 145

SALES REVENUE
SOAPS 15,187,500
HAIR COLOUR 33,077,860
DETERGENTS 26,507,885
TOTAL SALES REVENUE 74,773,245

EXHIBIT 7: RAW MATERIAL PRICE MOVEMENT

RAW MATERIAL PRICES (Rs./ml)
ACID Fixed Growth 1.31

SPECIALITY CHEMICALS Fixed Growth 1.2

ORDINARY CHEMICALS Variable Growth 1.47

PERFUMES Compounded Annual Growth 1.79

Price in Year 5: 1.25

COST PER UNIT

SOAP
ACID 3.28
SPECIALITY CHEMICALS 7.08
 ORDINARY CHEMICALS 3.53
PERFUMES 5.55
COST PER PACKET 19.43

HAIR COLOR
ACID 4.59
SPECIALITY CHEMICALS 8.40
ORDINARY CHEMICALS 8.23
PERFUMES 4.12
COST PER BOTTLE 25.33

DETERGENT
ACID 6.55
SPECIALITY CHEMICALS 11.76
ORDINARY CHEMICALS 14.7
PERFUMES 9.487
COST PER PACKET 42.50

RAW MATERIAL COST

SOAPS 6,558,300
HAIR COLOR 8,820,995
DETERGENTS 7,769,004
TOTAL RAW MATERIAL COST 23,148,299

EXHIBIT 8: MANPOWER (#)

MANPOWER
MANUFACTURING Fixed Growth 40

MARKETING Fixed Growth 9

CORPORATE Fixed Growth 3

EXHIBIT 9: AVERAGE MONTHLY SALARY

MONTHLY SALARY (Rs./Employee)
MANUFACTURING Fixed Growth 171,453
0
MARKETING Fixed Growth 110,577
0
CORPORATE Fixed Growth 106,866

SALARIES EXPENSE
MANUFACTURING 6,858,120
MARKETING 995,193
 CORPORATE 320,598
TOTAL SALARY WITHOUT BONUS 8,173,911
ADD: BONUS (15% of Salary) 1,226,087
TOTAL SALARY EXPENSE 9,399,998

EXHIBIT 10: PACKAGING COST PER UNIT

PACKAGING COST (Rs./Unit)
SOAPS Fixed Growth 1.35
0
HAIR COLOR Fixed Growth 1.96
0
DETERGENTS Fixed Growth 2.53

TOTAL PACKAGING COST

SOAPS 455,625.00
HAIR COLOR 682,448.48
DETERGENT 462,516.89
PACKAGING COST 1,600,590

MARKETING EXPENSE Percentage of Sales 7,477,325

10%

UTILITIES EXPENSE Fixed Growth 400,000

COMMISSIONS Growth rate of Sales 3,700,000

MAINTAINANCE Constant 100,000

INSURANCE PREMIUM Constant 200,000

DEPRECIATION EXPENSE %age of machinery 11,000,000

10%

FINANCE COST Interest Rate: 12% 4,800,000

BALANCE SHEET ASSUMPTIONS

MACHINERY 110,000,000
EXHIBIT 11: CAPITAL EXPENDITURE PLANS
COST OF MACHINERY 110,000,000
INVENTORY Historic Growth 7,200,000
4%

ACCOUNTS RECEIVABLE Historic Growth 5,117,911

-15.01%

LOANS AND ADVANCES Constant 1,000,000

PAID UP CAPITAL Constant 55,000,000

LONG-TERM LOANS Fully Ammortizing 40,000,000

EMPLOYEES FUND Historic Growth 900,000

0%

PAYABLES TO CUSTOMERS Historic Growth 700,000

75%

COMMISSION PAYABLES Historic Growth 600,000

0%

INSURANCE PREMIUM PAYABLE Constant 200,000

ACCOUNTS PAYABLE Historic Growth 2,500,000

14%

RETAINED EARNINGS 23,559,726

 RCPL
ASSUMPTIONS

Year 10 Year 11 Year 12 Year 13 Year 14

TATEMENT ASSUMPTIONS

388,125 434,700 486,864 545,288 610,722

15% 12% 12% 12% 12%
361,637 375,605 390,112 405,180 420,830
3.86% 3.86% 3.86% 3.86% 3.86%
191,954 202,127 213,446 226,040 239,602
5.0% 5.3% 5.6% 5.9% 6.0%

45 45 46 47 48
0% 0% 2% 2% 2%
100 104 109 115 120
4.84% 4.84% 4.84% 4.84% 4.84%
145 145 148 151 154
0% 0% 2% 2% 2%

17,465,625 19,561,500 22,347,058 25,529,279 29,164,648

36,018,732 39,221,070 42,708,121 46,505,196 50,639,860
27,833,279 29,308,443 31,568,710 34,099,889 36,868,800
81,317,637 88,091,013 96,623,888 106,134,364 116,673,309

1.38 1.44 1.52 1.59 1.67

5% 5% 5% 5% 5%
1.26 1.32 1.39 1.46 1.53
5% 5% 5% 5% 5%
1.54 1.66 1.84 2.08 2.41
5.0% 7.8% 10.5% 13.3% 16.0%
1.92 2.07 2.22 2.39 2.56
7.45% 7.45% 7.45% 7.45% 7.45%

3.44 3.61 3.79 3.98 4.18

7.43 7.81 8.20 8.61 9.04
 3.70 3.99 4.41 5.00 5.79
5.96 6.41 6.88 7.40 7.95
20.5 21.8 23.3 25.0 27.0

4.81 5.05 5.31 5.57 5.85

8.82 9.26 9.72 10.21 10.72
8.64 9.31 10.29 11.66 13.52
4.42 4.75 5.11 5.49 5.90
26.70 28.38 30.43 32.93 35.99

6.88 7.22 7.58 7.96 8.36

12.35 12.97 13.61 14.29 15.01
15.44 16.63 18.38 20.81 24.14
10.19 10.95 11.77 12.64 13.59
44.85 47.77 51.34 55.71 61.10

7,971,818 9,482,525 11,334,607 13,619,703 16,462,790

9,656,197 10,660,536 11,871,084 13,340,696 15,144,768
8,609,863 9,655,678 10,958,630 12,593,210 14,638,871
26,237,878 29,798,739 34,164,322 39,553,609 46,246,429

42 45 48 51 54
5% 5% 5% 5% 5%
10 11 12 13 14
5% 5% 5% 5% 5%
4 5 6 7 8
5% 5% 5% 5% 5%

180,026 189,027 198,478 208,402 218,822

5% 5% 5% 5% 5%
116,106 121,911 128,007 134,407 141,127
5% 5% 5% 5% 5%
112,209 117,820 123,711 129,896 136,391
5% 5% 5% 5% 5%

7,561,077 8,506,212 9,526,957 10,628,512 11,816,404

1,161,059 1,341,023 1,536,080 1,747,291 1,975,783
 448,837 589,099 742,265 909,274 1,091,129
9,170,973 10,436,333 11,805,302 13,285,077 14,883,317
1,375,646 1,565,450 1,770,795 1,992,762 2,232,497
10,546,619 12,001,783 13,576,098 15,277,839 17,115,814

1.38 1.40 1.43 1.46 1.49

2% 2% 2% 2% 2%
2.00 2.04 2.08 2.12 2.16
2% 2% 2% 2% 2%
2.58 2.63 2.68 2.74 2.79
2% 2% 2% 2% 2%

534,448.13 610,553.54 697,496.36 796,819.84 910,286.99

722,983.84 765,926.89 811,420.62 859,616.53 910,675.14
495,355.59 532,041.62 573,072.67 619,021.64 669,286.20
1,752,788 1,908,522 2,081,990 2,275,458 2,490,248

8,944,940 10,570,922 12,561,106 14,858,811 17,500,996

11% 12% 13% 14% 15%

420,000 441,000 463,050 486,203 510,513

5% 5% 5% 5% 5%

4,023,836 4,359,002 4,781,234 5,251,840 5,773,338

8.75% 8.33% 9.69% 9.84% 9.93%

100,000 100,000 100,000 100,000 100,000

200,000 200,000 200,000 200,000 200,000

21,000,000 18,000,000 17,000,000 22,000,000 23,900,000

10% 10% 10% 10% 10%

4,500,000 4,200,000 3,900,000 3,600,000 3,300,000

E SHEET ASSUMPTIONS

160,000,000 170,000,000 170,000,000 195,000,000 217,000,000

50,000,000 10,000,000 25,000,000 22,000,000
210,000,000 180,000,000 170,000,000 220,000,000 239,000,000
 8,739,030 9,617,530 10,625,681 11,854,495 13,439,293
21% 10% 10% 12% 13%

5,856,870 6,066,138 6,254,571 6,350,114 6,709,619

14.44% 3.57% 3.11% 1.53% 5.66%

1000000 1000000 1000000 1000000 1000000

55,000,000 55,000,000 55,000,000 55,000,000 55,000,000

37,500,000 35,000,000 32,500,000 30,000,000 27,500,000

913,125 1,021,083 1,086,895 1,140,497 1,210,803

1% 12% 6% 5% 6%

907,083 1,106,453 1,272,132 1,722,265 2,161,101

30% 22% 15% 35% 25%

765,000 1,027,969 1,084,186 1,266,719 1,533,299

28% 34% 5% 17% 21%

200,000 200,000 200,000 200,000 200,000

2,831,408 3,212,102 3,439,664 3,847,458 4,286,471

13% 13% 7% 12% 11%

25,930,166 30,227,456 35,372,876 37,043,075 36,736,815

EXHIBIT 6: RAW MATERIAL REQUIREMENT OF KEY PRODUCTS

10gms 100ml
RAW MATERIALS VOLUME REQUIRED (ml)
Soap Hair Color

Acid 2.5 3.5

Speciality Chemicals 5.9 7
Ordinary Chemicals 2.4 5.6
Perfumes 3.1 2.3
 100ml
Detergent

5
9.8
10
5.3
 EXHIBIT 4: IN

Year 5 Year 6

Revenue 40,218,750 48,563,472

Less: Costs
Raw Material Cost ### ###
Salary & Bonus 5,100,000 5,800,000
Utilities 200,000 200,000
Packaging 900,000 1,000,000
Marketing and Advertisments 2,000,000 4,100,000
Commission 2,000,000 2,400,000
Maintenance 100,000 100,000
Insurance Premium 200,000 200,000
Depreciation Expense ### ###

Total Expenses 33,300,000 40,100,000

Earnings before interest and taxation 6,918,750 8,463,472
Less: Finance cost 6,000,000 5,700,000
Earning before taxation 918,750 2,763,472
Less: Taxation 312,375 939,580
Profit for the year (Transferred to Retained Earnings) 606,375 1,823,892
 RCPL
EXHIBIT 4: INCOME STATEMENTS

Year 7 Year 8 Year 9 Year 10 Year 11 Year 12

57,793,169 66,374,130 74,773,245 81,317,637 88,091,013 96,623,888

### ### ### ### ### ###

7,200,000 8,300,000 9,399,998 ### ### ###
300,000 400,000 400,000 420,000 441,000 463,050
1,200,000 1,400,000 1,600,590 1,752,788 1,908,522 2,081,990
4,200,000 4,400,000 7,477,325 8,944,940 ### ###
2,900,000 3,300,000 3,700,000 4,023,836 4,359,002 4,781,234
100,000 100,000 100,000 100,000 100,000 100,000
200,000 200,000 200,000 200,000 200,000 200,000
### ### ### ### ### ###

45,000,000 49,600,000 57,026,211 73,226,061 77,379,968 84,927,798

12,793,169 16,774,130 17,747,034 8,091,576 10,711,045 11,696,090
5,400,000 5,100,000 4,800,000 4,500,000 4,200,000 3,900,000
7,393,169 11,674,130 12,947,034 3,591,576 6,511,045 7,796,090
2,513,677 3,969,204 4,401,991 1,221,136 2,213,755 2,650,671
4,879,492 7,704,926 8,545,042 2,370,440 4,297,290 5,145,419
Year 13 Year 14

106,134,364 116,673,309

### ###
### ###
486,203 510,513
2,275,458 2,490,248
### ###
5,251,840 5,773,338
100,000 100,000
200,000 200,000
### ###

100,003,759 113,837,339
6,130,605 2,835,970
3,600,000 3,300,000
2,530,605 (464,030)
860,406 (157,770)
1,670,199 (306,260)
 RCPL
CASHFLOW STATEMENT

Year 5 Year 6 Year 7

CASH FLOW FROM OPERATING ACTIVITIES

Earnings before interest and taxation 8,463,472 12,793,169
Adjustments for non-cash charges and other items:
Depreciation 10,000,000 10,500,000
Finance costs -5,700,000 -5,400,000
Profit / (loss) before working capital changes 12,763,472 17,893,169

Effect on cash flow due to working capital changes

(Increase) / Decrease in current assets
Inventory -2,400,000 -500,000
Accounts Receivable -1,913,854 -283,920
Loans and Advances 0 -500,000
(Decrease) / Increase in current liabilities
Employees Fund -400,000 200,000
Payables to customers 300,000 400,000
Commision Payables 0 600,000
Insurance Premium Payable 0 0
Accounts Payable 200,000 700,000
Cash (used in) / generated from operations 8,549,618 18,509,249
Income tax paid -939,580 -2,513,677
Net cash used in operating activities 7,610,038 15,995,572

CASH FLOW FROM INVESTING ACTIVITIES

Purchase of Machinery 0 -5,000,000
Net cash generated from / (used in) investing activities 0 -5,000,000

CASH FLOW FROM FINANCING ACTIVITIES

New Capital Raised
Long Term Loan -2,500,000 -2,500,000
Net cash generated from financing activities -2,500,000 -2,500,000
Net increase in cash and cash equivalents 5,110,038 8,495,572
Cash and cash equivalents at the beginning of the year 11,400,998 16,511,036
Cash and cash equivalents at the end of the year 11,400,998 16,511,036 25,006,607
 RCPL
HFLOW STATEMENT

Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14

16,774,130 17,747,034 8,091,576 10,711,045 11,696,090 6,130,605 2,835,970

11,000,000 11,000,000 21,000,000 18,000,000 17,000,000 22,000,000 23,900,000

-5,100,000 -4,800,000 -4,500,000 -4,200,000 -3,900,000 -3,600,000 -3,300,000
22,674,130 23,947,034 24,591,576 24,511,045 24,796,090 24,530,605 23,435,970

-400,000 -300,000 -1,539,030 -878,500 -1,008,150 -1,228,814 -1,584,798

-518,472 903,712 -738,959 -209,268 -188,434 -95,543 -359,505
500,000 0 0 0 0 0 0

100,000 0 13,125 107,958 65,812 53,602 70,307

-800,000 300,000 207,083 199,369 165,680 450,133 438,836
-400,000 0 165,000 262,969 56,217 182,533 266,580
0 0 0 0 0 0 0
-300,000 300,000 331,408 380,694 227,562 407,794 439,013
20,855,658 25,150,746 23,030,203 24,374,267 24,114,777 24,300,310 22,706,401
-3,969,204 -4,401,991 -1,221,136 -2,213,755 -2,650,671 -860,406 157,770
16,886,454 20,748,754 21,809,068 22,160,512 21,464,106 23,439,904 22,864,171

-5,000,000 0 -50,000,000 -10,000,000 0 -25,000,000 -22,000,000

-5,000,000 0 -50,000,000 -10,000,000 0 -25,000,000 -22,000,000

-2,500,000 -2,500,000 -2,500,000 -2,500,000 -2,500,000 -2,500,000 -2,500,000

-2,500,000 -2,500,000 -2,500,000 -2,500,000 -2,500,000 -2,500,000 -2,500,000
9,386,454 18,248,754 -30,690,932 9,660,512 18,964,106 -4,060,096 -1,635,829
25,006,607 34,393,061 52,641,815 21,950,883 31,611,394 50,575,500 46,515,405
34,393,061 52,641,815 21,950,883 31,611,394 50,575,500 46,515,405 44,879,576
 RCPL
EXHIBIT 3: BALANCE SH

Year 5 Year 6

FIXED ASSETS
Machinery 100,000,000 100,000,000
Accumulated Depreciation 10,000,000 20,000,000

Net Non - Current Assets 90,000,000 80,000,000

CURRENT ASSETS
Cash 11,400,998 16,511,036
Inventory 3,600,000 6,000,000
Accounts Receivables 3,305,377 5,219,231
Loans & Advances 1,000,000 1,000,000
Total Current Assets 19,306,375 28,730,267

TOTAL ASSETS 109,306,375 108,730,267

LIABILITIES AND EQUITY

EQUITY
Paid Up Capital 55,000,000 55,000,000
Retained Earnings 606,375 2,430,267

Total Equity 55,606,375 57,430,267

NON - CURRENT LIABILITIES

Long - Term Loan 50,000,000 47,500,000

CURRENT LIABILITIES
Employees Fund 1,000,000 600,000
Payables to Customers 500,000 800,000
Commission Payables 400,000 400,000
Insurance Premium Payable 200,000 200,000
Accounts Payable 1,600,000 1,800,000

TOTAL LIABILITIES AND EQUITY 109,306,375 108,730,267

 RCPL
EXHIBIT 3: BALANCE SHEETS

Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13

105,000,000 110,000,000 110,000,000 160,000,000 170,000,000 170,000,000 195,000,000

30,500,000 41,500,000 52,500,000 73,500,000 91,500,000 108,500,000 130,500,000

74,500,000 68,500,000 57,500,000 86,500,000 78,500,000 61,500,000 64,500,000

25,006,607 34,393,061 52,641,815 21,950,883 31,611,394 50,575,500 46,515,405

6,500,000 6,900,000 7,200,000 8,739,030 9,617,530 10,625,681 11,854,495
5,503,151 6,021,623 5,117,911 5,856,870 6,066,138 6,254,571 6,350,114
1,500,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
38,509,758 48,314,684 65,959,726 37,546,782 48,295,062 68,455,752 65,720,013

113,009,758 116,814,684 123,459,726 124,046,782 126,795,062 129,955,752 130,220,013

55,000,000 55,000,000 55,000,000 55,000,000 55,000,000 55,000,000 55,000,000

7,309,758 15,014,684 23,559,726 25,930,166 30,227,456 35,372,876 37,043,075

62,309,758 70,014,684 78,559,726 80,930,166 85,227,456 90,372,876 92,043,075

45,000,000 42,500,000 40,000,000 37,500,000 35,000,000 32,500,000 30,000,000

800,000 900,000 900,000 913,125 1,021,083 1,086,895 1,140,497

1,200,000 400,000 700,000 907,083 1,106,453 1,272,132 1,722,265
1,000,000 600,000 600,000 765,000 1,027,969 1,084,186 1,266,719
200,000 200,000 200,000 200,000 200,000 200,000 200,000
2,500,000 2,200,000 2,500,000 2,831,408 3,212,102 3,439,664 3,847,458

113,009,758 116,814,684 123,459,726 124,046,782 126,795,062 129,955,752 130,220,013

 Year 14

217,000,000
154,400,000

62,600,000

44,879,576
13,439,293
6,709,619
1,000,000
66,028,488

128,628,488

55,000,000
36,736,815

91,736,815

27,500,000

1,210,803
2,161,101
1,533,299
200,000
4,286,471

128,628,488