Projected Profit and Loss Statement (Summary)
1. Revenue:
• Hospitality (Eco-friendly Resorts)
Agribusiness Projects
• Real Estate Development (Sustainable Projects)
• Banqueting Services
2. Costs:
• Cost of Goods Sold (COGS) for each segment
• Operating Expenses (fixed and variable)
• Depreciation and Amortization
3. Gross Profit:
• Revenue – COGS
4. Operating Expenses:
• Staff Salaries
• Marketing and Sales Expenses
• Administrative Costs
• Maintenance Costs
5. Operating Income:
• Gross Profit – Operating Expenses
6. Net Profit Before Tax:
• Operating Income – Interest Expenses (if applicable)
7. Tax:
• Apply a corporate tax rate
8. Net Profit After Tax:
• Net Profit Before Tax – Tax
Example of a 5-Year Projected P&L Statement:
Projected Balance Sheet for 5 years
Components of the Projected Balance Sheet:
1. Assets:
o Current Assets:
Cash and Cash Equivalents
Accounts Receivable
Inventory
o Non-Current Assets:
Property, Plant, and Equipment (PPE)
Intangible Assets
Long-term Investments
2. Liabilities:
o Current Liabilities:
Accounts Payable
Short-term Debt (if any, though primarily equity-funded)
Other Current Liabilities
o Non-Current Liabilities:
Long-term Debt (minimal or none)
Deferred Tax Liabilities
. Equity:
o Share Capital (amount raised from equity investors)
o Retained Earnings (cumulative net income less dividends paid)
Assumptions for the Balance Sheet:
• Asset Growth: Linked to the capital investment strategy and projected revenue growth.
• Debt Policy: Minimal reliance on debt; focus on equity and reinvested earnings for financing.
• Equity Injections: Occasional equity investments from private placements.
• Depreciation: Straight-line depreciation for PPE.
• Retained Earnings: Proportional to the net income retained each year after any distributions.
Example Data Structure:
Using the earlier P&L projections, let’s make a simplified balance sheet. Here, the initial values and
growth rates are illustrative:
• Initial Cash and Equivalents: INR 100 crore (NOT SURE ABOUT THIS AS THIS CAN INCREASE
OR WHAT EVER)
• Initial PPE: INR 500 crore
• Initial Share Capital: INR 400 crore
• Growth in PPE: Reflecting capital expenditures
• Annual Depreciation: 10% of PPE