eFarm Pilot Operations : Financial Summary ( Feb 2008 through April 1 2009) Start-Up Funds Amount Totals Depreciation Notes Fixed Assets Real Estate $ - Buildings - 10.00 years Leasehold Improvements 250,000 7.00 years Equipment 250,000 7.00 years Furniture and Fixtures 100,000 5.00 years Vehicles 600,000 5.00 years Other Fixed Assets 50,000 5.00 years Total Fixed Assets 1,250,000 Operating Capital Pre-Opening Salaries and Wag 600,000 Prepaid Insurance Premiums 20,000 Vehicle , core assets Beginning Inventory 10,000 Legal and Accounting Fees 150,000 Rent Deposits 150,000 Utility Deposits 10,000 Supplies 20,000 Technology development 150,000 Marketing and promotions 150,000 R & D 150,000 Licenses 50,000 Trials and pilots 120,000 Other Initial Start-Up Costs 100,000 Travel , Misc expenses, Bad debts Working Capital (Cash On Han 50,000 For existing businesses, this is the "bucket" of cash plus receivables that will be Total Operating Capital 1,730,000 be collected less payables paid out in cash in the first month of the plan Buffer (as %) 5% Total Startup Expenses INR 3,129,000 Sources of Funding Amount Totals Loan Rate Term in Months Monthly Payments Owner's Cash Injection 75.47% 2,000,000 Outside Investors 15.09% 400,000 Additional Loans or Debt 0.00% Personal soft loans/angel fu 9.43% 250,000 4% 24 INR 10,856 Commercial Loan 0.00% - 9.00% 84.00 INR 0 Commercial Mortgage 0.00% - 9.00% 240.00 INR 0 Total Sources of Funding 100.00% INR 2,650,000 INR 0
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eFarm 3-May-23
Pilot Operations : Financial Summary ( Feb 2008 through April 1 2009)
Real Estate $ - Buildings - 10.00 yearsLeasehold Improvements 250,000 7.00 yearsEquipment 250,000 7.00 yearsFurniture and Fixtures 100,000 5.00 yearsVehicles 600,000 5.00 yearsOther Fixed Assets 50,000 5.00 years
Total Fixed Assets 1,250,000
Operating CapitalPre-Opening Salaries and Wages 600,000 Prepaid Insurance Premiums 20,000 Vehicle , core assetsBeginning Inventory 10,000 Legal and Accounting Fees 150,000 Rent Deposits 150,000 Utility Deposits 10,000 Supplies 20,000 Technology development 150,000 Marketing and promotions 150,000 R & D 150,000 Licenses 50,000 Trials and pilots 120,000 Other Initial Start-Up Costs 100,000 Travel , Misc expenses, Bad debtsWorking Capital (Cash On Hand) 50,000 For existing businesses, this is the "bucket" of cash plus receivables that will be
Total Operating Capital 1,730,000 be collected less payables paid out in cash in the first month of the planBuffer (as %) 5%
Total Startup Expenses INR 3,129,000
Sources of Funding Amount Totals Loan Rate Term in Months Monthly PaymentsOwner's Cash Injection 75.47% 2,000,000 Outside Investors 15.09% 400,000 Additional Loans or Debt 0.00%
Total Sources of Funding 100.00% INR 2,650,000 INR 0
Income Statement
Income Volume(in kgs) Totals CommentsWholesale transactions 40000 480000 sales thro SHGs, Market , Low cost stallsRetail transactions 4000 60000 Organic sales, Brand stores , van based sales, Cut vegetables etc.,Other income - Consulting 600000 Technology consulting to clients
Total income 1140000
Cost of saleWholesale transactions 40000 400000 cost of puchase of raw materialsRetail transactions 4000 48000 COGS + sorting, grading, cleaning,packing expensesConsulting 300000
Total Costs 748000
Gross Margin 392000Gross Margin % 52%
Salaries and wages 600000Operating Expenses 2170000 Initial costs high owing to set up of infrastructure , training , trial runs etcLoan repayments (monthly) 10856Net income (Profit/Loss before tax) (2508272)
Note : Being a pilot phase , the scope was to test out the model , apply lessons learnt, and develop the processes and core technologies required for a steady state operation.
Investors SnapshotYear 1 Year 2 Year 3 Total
Key indicators (Figures in lakhs)Sales 346.7024 1446.1961 3412.1141 5205.0126Net profit before tax -319.7677 -139.15363 570.0638 111.14249
Amount of seed funds required (in Rs lakhs) 310 130 0 440
Social Impact No. of farmers benefitted 792 3496 10472No. of truck drivers benefitted 297 1311 3927No. of vegetable vendors benefited 432 2107 4699Jobs created 856 19537 98694
Key indicatorsROIIRR
1 USD = 45 Rs(In USD)
$ 11,570,000 $ 250,000
$ 1,000,000
3 acres per farmer at 3 tonnes pm4 tonnes per truck , 2 drivers (long + local)Each localised store would support 3 small vendorsEach registered user represents 1 new job created
Please refer : Social Impact worksheet for details
Please refer : projected sales revenue & Year end summary sheets for reference
eFarm 3-May-23Salaries and Wages : Worksheet for current and future year projections
Salaries and Related Expenses # Assumptions Wage Base Monthly Year One Year Two Year Three
12 New store launch events 60000013 eFarm promo video 10 min video 3000014 eFarm training videos 30 mins 3000015 eFarm audio tracks for carts 30 mins 5000
2 person month+ travel1 person month+ travel1 person month+ travel2 person months+ travel2 person months1 person month 1 person month2 person months2 person months1 person month
Employee benefits(15%of base, PPF, Insurance etc)
Total 10381350
G Miscellaneous
1 Travel & Conveyance 2880000
2 Registration in professional bodies 250003 Company registration etc 3000004 Trade marks, Logos etc 1500005 Trade licenses 100000
6 Client related expenses 2400007 Bad debts 3% of sales 0
Breakeven Sales Revenu $124,066,613.51 Breakeven Sales Units 3,086
Network / Franchisee FeesPrice Per Unit $ 30,000.00 100.00%Variable Cost Per Unit $ 14,250.00 47.50%Gross Margin Per Unit $ 15,750.00 52.50%Projected Unit Sales
Breakeven Sales Revenu $ 6,172,468.33 Breakeven Sales Units 206
Portal - Registrations , transactionsPrice Per Unit $ 1,710.00 100.00%Variable Cost Per Unit $ 250.00 14.62%Gross Margin Per Unit $ 1,460.00 85.38%Projected Unit Sales
Breakeven Sales Revenu $ 7,590,867.74 Breakeven Sales Units 4,439
Other income - Consulting, Training etc., Price Per Unit $ 50,000.00 100.00%Variable Cost Per Unit $ 20,000.00 40.00%Gross Margin Per Unit $ 30,000.00 60.00%Projected Unit Sales
Total Fixed Business Expenses 29,654,050 44,481,075 55,601,344 61,161,478 67,277,626 74,005,389
Total Other Expenses 1,259,594 1,254,136 - - - -
Net Income (31,976,769) (13,915,363) 57,006,380 180,714,076 342,680,153 573,174,672
Notes1. Fourth year would see further infusion of funds for expansion 2. Fifth / sixth years the fixed costs and varibale costs would stabilise and would reach optimal levels3. With more entrepreneurs coming into network, most expansion costs would be borne externally
eFarmYear End Summary
Extended Projections till 6 years
Year One Year Two Year Three Year Four Year Five Year Six4. Margins would improve owing to operational efficienceis, scale and reduced wastage
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2. Fifth / sixth years the fixed costs and varibale costs would stabilise and would reach optimal levels3. With more entrepreneurs coming into network, most expansion costs would be borne externally
4. Margins would improve owing to operational efficienceis, scale and reduced wastage
eFarmFinancial Ratios
Ratio Year One Year Two Year Three RMA Industry NormsLiquidity
Current Ratio #REF! #REF! #REF!Quick Ratio #REF! #REF! #REF!
SafetyDebt to Equity Ratio #REF! #REF! #REF!Debt to Coverage Ratio #REF! #REF! #REF!
ProfitabilitySales Growth - #VALUE! #REF!COGS to Sales 0.76 #REF! #REF!Gross Profit Margin 0.24 #REF! #REF!SG&A to Sales 1.12 #REF! #REF!Net Profit Margin (0.89) #REF! #REF!Return on Equity #REF! #REF! #REF!Return on Assets #REF! #REF! #REF!Owner's Compensation to Sales 0.02 #REF! #REF!
EfficiencyDays in Receivables #VALUE! #REF! #REF!Accounts Receivable Turnover #REF! #REF! #REF!Days in Inventory #VALUE! #REF! #REF!Inventory Turnover #REF! #REF! #REF!Sales to Total Assets #REF! #REF! #REF!
G8
An indication of a company's ability to meet short-term debt obligations.
G9
The ratio between all assets quickly convertible into cash and current liabilities. Measures a company's liquidity. Also called acid-test ratio.
G11
This ratio expresses the relationship between capital contributed by creditors and that contributed by owners.
G12
This ratio indicates how well your cash flow covers debt and the capability of the business to take on additional debt.
G14
This ratio calculates the percentage of increase (or decrease) in sales between the current year and the previous year.
G15
The percentage of sales used to pay for the COGS (expenses which directly vary with sales) is expressed in this ratio.
G16
This ratio indicates how much profit is earned on your products without consideration of indirect costs, selling and administration costs.
G17
This ratio measures the percentage of selling, general and administrative costs to your amount of sales.
G18
Net profit margin shows how much profit comes from every dollar of sales.
G19
Return on equity determines the rate of return on your investment in the business. As an owner or shareholder this is one of the most important ratios as it shows the hard fact about the business - are you making enough of a profit to compensate you for the risk of being in business?
G20
This ratio measures how effectively assets are used to generate a return.
G21
This ratio measures the owner's compensation as a percentage of sales.
G23
Days in receivable calculates the average number of days it takes to collect your account receivable (number of days of sales in receivables).
G24
This ratio tells you the number of times accounts receivable turnover during the year.
G25
This ratio shows the average number of days it will take to sell your inventory.
G26
This ratio calculates the number of times inventory is turned over (or sold) during the year.
G27
This ratio indicates how efficiently your business generates sales on every dollar of assets.
Social Impact : Worksheet
Impact for farmers
Current scenario/ assumptionsTypical area under cultivation 3 acresTypical yield 1 tonne per acre per monthTypical blended market rate 10000 per tonneTypical on hand price to farmer 7000 per tonneTypical cost of production for farmer 9800 per acre per monthProfit/Loss -8400 This represents the debt trap for the farmer Operating margin -29% LOSSeFarm impact metrics1.A unit of 3 tonnes represents 1 Farmer Unit2. eFarm works with farmers to arrive at cost based pricing instead of auction/mandi system pricing
Target operating margin for farmer 15% GainTarget on hand price for farmer 11270 per acre per monthAdditional income per farmer 12810 per monthNet profit per farmer 4410 A small step, albeit in positive direction
Impact for truck driversCurrent scenario / assumptionsA unit of truck capacity for long haul 4 tonnesAverage rate (one way) 5500 rates vary daily due to middlemen & fluctuating demandAvg. distance (one way) 550Broker commission 30%On hand price to driver 3850No. of work days for driver 15 per monthRevenue for driver 57750Cost of truck 12500 2nd hand truck @ 3 lakhs , 2 year depreciationFuel cost 28050 Mileage at 10 kms/l of diesel , 34 rs diesel rateInsurance/tax etc 1250Misc expenses/Maintenance 8250 1 rupee per km (toll, maint etc)Net income for driver 7700 Not enough to support a family in urban area
eFarm Impact MetricsA unit of 4 tonnes represents long haul truck+driver uniteFarm model1.Avoid broker commisions2.Set target monthly income for driver3.Provide more uniform work throughout month , reduce idle time , improve utlisation of truck 4.Work backwards to arrive at 'pre-negotiated rates' to bring about stability in pricing across drivers, locations
Target income for driver 15000 per monthTarget utilisation / work days 21 per monthAvg. distance per trip 550Fuel cost 39270 same as above
3. eFarm shares market data , demand data and profitability to assst farmers in choosing crop mix to reach goal price
Truck cost 12500 same as aboveInsurance/tax 1250 same as aboveMisc expenses / maintenance 11550 1 rupee per km (toll, maint etc)Rate per trip 3789 eFarm saves about 31% and driver gets his target income
rates are stabilised to avoid daily fluctuations
Impact for Street vendors / small shop ownersCurrent scenario/ assumptionsTypical volume handled per day 80 kgsWastage 20%Typical blended rate of purchase 15 rs per kgTypical margins 40%Misc expenses 40 Travel to/fro wholesale markets , rents etc.,Blended sale price 21 Customers see high price hike from wholesale to retailNet saleable volume 64Daily profit/loss 104Monthly income 3120 Not enough to support a family in urban area
eFarm Impact metrics1. eFarm provides produce to the local vendors at reduced rates2. eFarm has distributed city wide godowns closer to vendor, hence reducing travel time & costs3. eFarm trains the vendors on precision marketing , better planning and waste control measures thereby increasing sales revenue4. eFarm works backwards from target monthly income to arrive at produce selection & pricing strategy
Typical volume handled 80 kgs same as aboveTarget monthly income 6000 MinimumWastage 5% reduced , owing to training & better handling
Typical blended rate of purchase 12.5 reduced owing to purchase from eFarm
Purchase price 1000Saleable volume 76Misc expenses 20 reduced owing to less travel involvedDaily profit 200 worked back from monthly targetBlended sale price 16.1 end customers see benefit as prices are lower , yet sustainable for vendorMargin 28%
3. eFarm trains the vendors on precision marketing , better planning and waste control measures thereby increasing sales revenue
end customers see benefit as prices are lower , yet sustainable for vendor
This spreadsheet walks you through the process of developing an integrated set of financial projections.
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A number found in the color green is optional information that you can complete. -
Otherwise, any information found in black type is automatically calculated for you.Although the cells that are calculated are locked (or protected), you can turn off this protection to modify the sheets.To do this, select "Tools" from the menu bar at the top of the screen. Then select, "Protection."Finally, select "Unprotect Sheet" and you will be able to edit any labels or formulas.
Before you begin, we need some information about your business to best customize your financial statements.Please enter the name of your business in the box below:
eFarm
The first six worksheets in this workbook are steps you will need to complete. They are titled:1. Required Start-Up Funds2. Salaries and Wages3. Fixed Operating Expenses4. Projected Sales Forecast (2 sheets)5. Cash Receipts and Disbursements
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