The Hemp Store P&L Projections

Sr No Account Head Y1 Y2 Y3 Y4 Y5 Notes

1 Total Revenue from Product Sale ₹ 232,065,840 ₹ 510,382,800 ₹ 895,305,150 ₹ 1,473,919,237 ₹ 2,255,593,110

2 Revenue from B2B Tie-Ups ₹ 5,750,000 ₹ 29,250,000 ₹ 74,531,250 ₹ 158,315,625 ₹ 285,187,500

Revenue Projections
3 Revenue from Corporate Gifting ₹ 1,000,000 ₹ 8,050,000 ₹ 22,425,000 ₹ 43,200,000 ₹ 81,000,000

4 Revenue from Exports (in INR) ₹ 23,904,000 ₹ 52,290,000 ₹ 124,500,000 ₹ 438,240,000 ₹ 1,328,000,000

5 Total Revenue ₹ 262,719,840 ₹ 599,972,800 ₹ 1,116,761,400 ₹ 2,113,674,862 ₹ 3,949,780,610

Direct costs associated with producing the company's products, such as raw materials, labor, and overhead costs related to
6 Cost of Goods Sold ₹ 90,960,662 ₹ 205,722,408 ₹ 376,804,854 ₹ 686,744,275 ₹ 1,223,478,520 the manufacturing process.

- Cost of Raw Materials ₹ 75,800,552 ₹ 171,435,340 ₹ 314,004,045 ₹ 572,286,896 ₹ 1,019,565,433

- Labor Cost ₹ 15,160,110 ₹ 34,287,068 ₹ 62,800,809 ₹ 114,457,379 ₹ 203,913,087
(% of Revenue) 35% 34% 34% 32% 31%

7 Packaging & Labelling ₹ 2,274,017 ₹ 5,143,060 ₹ 9,420,121 ₹ 17,168,607 ₹ 30,586,963 Costs associated with packaging the finished products, including the materials used for packaging (boxes, containers, etc.)

(% of Raw Materials) 3% 3% 3% 3% 3%
(% of Revenue) 0.9% 0.9% 0.8% 0.8% 0.8%

Expenses incurred for transporting raw materials and finished goods, including shipping charges, freight costs, and other
8 Carrier & Freight ₹ 18,950,138 ₹ 41,144,482 ₹ 69,080,890 ₹ 120,180,248 ₹ 203,913,087 logistics-related expenses.

(% of Raw Material) 25.0% 24.0% 22.0% 21.0% 20.0%

(% of Revenue) 7.2% 6.9% 6.2% 5.7% 5.2%

Overall compensation package that is provided to Operations, Finance, Marketing & Management Team, along with the
9 Compensation & Benefits ₹ 33,800,000 ₹ 77,570,000 ₹ 130,004,000 ₹ 209,908,300 ₹ 308,555,410 boards remuneration

(% of Revenue) 13% 13% 12% 10% 8%

Costs associated with promoting the company's products and services including advertising campaigns, sponsorships,
10 Marketing ₹ 87,216,000 ₹ 177,780,000 ₹ 291,662,500 ₹ 451,162,500 ₹ 657,675,000 marketing materials, and events

(% of Revenue) 33% 30% 26% 21% 17%

Refers to the expenses incurred by a company for engaging third-party service providers or sales representatives to sell their
11 Commission & Service Fees ₹ 47,891,244 ₹ 106,667,100 ₹ 156,798,165 ₹ 280,774,567 ₹ 517,615,422 products or services

(% of Revenue) 18% 18% 14% 13% 13%

Accounting, CRM, productivity tools, Licensing fees for using third-party software, Training and support services related to
12 Software & Licenses ₹ 480,000 ₹ 720,000 ₹ 860,000 ₹ 1,080,000 ₹ 1,300,000 software usage

(% of Revenue) 0.2% 0.1% 0.1% 0.1% 0.0%

13 Legal & Professional Fees ₹ 2,627,198 ₹ 5,999,728 ₹ 8,999,592 ₹ 15,299,306 ₹ 22,948,960 Fees include licensing fees, registration fees, compliance-related charges or Consulting charges

(% of Revenue) 1% 1% 1% 1% 1%

14 Travelling & Lodging ₹ 3,502,080 ₹ 5,999,728 ₹ 8,999,592 ₹ 15,299,306 ₹ 22,948,960 Expenses related to business travel undertaken by the company's employees or representatives

(% of Revenue) 1% 1% 1% 1% 1%

Refers to the amount paid by the company for leasing or renting the premises including necessary services like electricity,
15 Rent & Utlities ₹ 5,306,400 ₹ 5,772,888 ₹ 11,472,424 ₹ 12,497,253 ₹ 13,615,997 water, internet

(% of Revenue) 2% 1% 1% 1% 0%

18 Operating Expenses ₹ 293,007,740 ₹ 632,519,394 ₹ 1,064,102,138 ₹ 1,810,114,364 ₹ 3,002,638,318 Total of all the Operating Expenses

19 EBITDA ₹ -30,287,900 ₹ -32,546,594 ₹ 52,659,262 ₹ 303,560,498 ₹ 947,142,292 Total Revenue - Total Operating Expenses

20 Finance Cost ₹ 2,400,000 ₹ 2,400,000 ₹ 6,000,000 ₹ 6,000,000 ₹ 6,000,000 Interest expense on any outstanding debt or borrowing costs

21 Depreciation ₹ 4,500,000 ₹ 4,700,000 ₹ 17,400,000 ₹ 17,520,000 ₹ 17,660,000 Depreciation expense for fixed assets like equipment, furniture, leasehold improvements

22 Branding & Tech Amortization ₹ 2,093,333 ₹ 6,030,667 ₹ 10,932,000 ₹ 18,930,133 ₹ 28,384,747 Amortization of any branding/trademarking costs and capitalized technology/software

23 Non-Operating Expenses ₹ 8,993,333 ₹ 13,130,667 ₹ 34,332,000 ₹ 42,450,133 ₹ 52,044,747

24 Profit before Tax ₹ -39,281,233 ₹ -45,677,261 ₹ 18,327,262 ₹ 261,110,364 ₹ 895,097,546

25 Tax ₹ - ₹ 52,222,073 ₹ 223,774,386

26 Profit after Tax ₹ -39,281,233 ₹ -45,677,261 ₹ 18,327,262 ₹ 208,888,291 ₹ 671,323,159

EBITDA Margin -11.5% -5.4% 4.7% 14.4% 24.0%

Net Profit Margin -15.0% -7.6% 1.6% 9.9% 17.0%
 Marketing & Customer Acquisition Cost Assumption Sheet

Marketing Expenses Y1 Y2 Y3 Y4 Y5 Cost Estimates Amount

Performance Marketing Budget ₹ 81,216,000 ₹ 166,980,000 ₹ 266,062,500 ₹ 395,962,500 ₹ 574,275,000 India Domestic - Economy ₹ 15,000
Spend per Customer ₹ 120 ₹ 115 ₹ 110 ₹ 100 ₹ 95 India Domestic - Business ₹ 60,000
Total E-comm Customer 316,800 660,000 972,000 1,620,000 2,520,000 India International - Eco $ 1,000
Total Medical Practitioner Customer 72,000 216,000 438,750 707,625 1,125,000 India International - Business $ 4,500
Total Website Customer 288,000 576,000 1,008,000 1,632,000 2,400,000
Hotels
Events & Campaigns ₹ 1,200,000 ₹ 6,000,000 ₹ 16,000,000 ₹ 36,000,000 ₹ 45,000,000 India INR 12000 per night
(No of Events) 12 20 40 60 60
(Budget per Event) ₹ 100,000 ₹ 300,000 ₹ 400,000 ₹ 600,000 ₹ 750,000 F&B
India INR 4000 per person/day
Offline Marketing ₹ 4,800,000 ₹ 4,800,000 ₹ 9,600,000 ₹ 19,200,000 ₹ 38,400,000
(No of Cities) 2 2 4 8 16 Transport
(Budget per Month) ₹ 200,000 ₹ 200,000 ₹ 200,000 ₹ 200,000 ₹ 200,000 India INR 1500 per day
Total Marketing Budget ₹ 87,216,000 ₹ 177,780,000 ₹ 291,662,500 ₹ 451,162,500 ₹ 657,675,000

Total Travel Budget

Annual summary
Travel Budget Y1 Y2 Y3 Y4 Y5
Travel (India) ₹ 1,008,000 ₹ 4,320,000 ₹ 7,776,000 ₹ 12,960,000 ₹ 14,256,000
Travel (Global) ₹ 360,000 ₹ 1,512,000 ₹ 3,168,000 ₹ 5,040,000 ₹ 6,720,000
Lodging (India) ₹ 1,209,600 ₹ 5,184,000 ₹ 9,331,200 ₹ 15,552,000 ₹ 17,107,200
Lodging (Global) ₹ 432,000 ₹ 1,814,400 ₹ 3,801,600 ₹ 6,048,000 ₹ 8,064,000
F&B ₹ 492,480 ₹ 2,099,520 ₹ 3,939,840 ₹ 6,480,000 ₹ 7,551,360
Total Travel Budget ₹ 3,502,080 ₹ 14,929,920 ₹ 28,016,640 ₹ 46,080,000 ₹ 53,698,560
 Total Rental

Annual summary
Particulars Y1 Y2 Y3 Y4 Y5
Manufacturing Plant Rental ₹ 2,880,000 ₹ 3,168,000 ₹ 6,720,000 ₹ 7,392,000 ₹ 8,131,200
Total Square feet 12,000 12,000 20,000 20,000 20,000
Price per square feet ₹ 20 ₹ 22 ₹ 28 ₹ 31 ₹ 34
No. of Month 12 12 12 12 12

Office Rental ₹ 1,944,000 ₹ 2,080,080 ₹ 3,709,476 ₹ 3,969,139 ₹ 4,246,979

Total Square feet 1,200 1,200 2,000 2,000 2,000
Price per square feet ₹ 135 ₹ 144 ₹ 155 ₹ 165 ₹ 177
No. of Month 12 12 12 12 12

Total Rental ₹ 4,824,000 ₹ 5,248,080 ₹ 10,429,476 ₹ 11,361,139 ₹ 12,378,179

Additional Utlities ₹ 482,400 ₹ 524,808 ₹ 1,042,948 ₹ 1,136,114 ₹ 1,237,818

Total Rent & Utilities ₹ 5,306,400 ₹ 5,772,888 ₹ 11,472,424 ₹ 12,497,253 ₹ 13,615,997

 Compensation & Benefits

Sno Job Description Y1 Y2 Y3 Y4 Y5 Sno Job Description Y1 Y2 Y3 Y4 Y5

1 CRO - Marketing Representatives 7 CRO
- Average CTC ₹ 440,000 500,000 ₹ 750,000 ₹ 975,000 ₹ 1,267,500 - Average CTC ₹ - ₹ 5,000,000 ₹ 7,500,000 ₹ 15,000,000 ₹ 20,000,000
- FTE Roles 15 25 30 40 50 - FTE Roles 1 1 1 1
- Total Compensation ₹ 6,600,000 12,500,000 ₹ 22,500,000 ₹ 39,000,000 ₹ 63,375,000 - Total Compensation ₹ - ₹ 5,000,000 ₹ 7,500,000 ₹ 15,000,000 ₹ 20,000,000

2 CFO - Finance & Tax Professional 7 COO

- Average CTC ₹ 500,000 ₹ 550,000 ₹ 605,000 ₹ 726,000 ₹ 871,200 - Average CTC ₹ 5,000,000 ₹ 10,000,000 ₹ 12,000,000 ₹ 20,000,000 ₹ 30,000,000
- FTE Roles 3 3 4 4 5 - FTE Roles 1 1 1 1 1
- Total Compensation ₹ 1,500,000 ₹ 1,650,000 ₹ 2,420,000 ₹ 2,904,000 ₹ 4,356,000 - Total Compensation ₹ 5,000,000 ₹ 10,000,000 ₹ 12,000,000 ₹ 20,000,000 ₹ 30,000,000

3 CAO - HR & Admin 8 CEO

- Average CTC ₹ 500,000 ₹ 550,000 ₹ 605,000 ₹ 665,500 ₹ 732,050 - Average CTC ₹ 5,000,000 10,000,000 ₹ 15,000,000 ₹ 25,000,000 ₹ 40,000,000
- FTE Roles 3 4 4 5 5 - FTE Roles 1 1 1 1 1
- Total Compensation ₹ 1,500,000 ₹ 2,200,000 ₹ 2,420,000 ₹ 3,327,500 ₹ 3,660,250 - Total Compensation ₹ 5,000,000 ₹ 10,000,000 ₹ 15,000,000 ₹ 25,000,000 ₹ 40,000,000

4 COO - Operations Team 9 CFO

- Average CTC ₹ 240,000 ₹ 300,000 ₹ 360,000 ₹ 432,000 ₹ 518,400 - Average CTC ₹ 4,000,000 ₹ 8,000,000 ₹ 12,000,000 ₹ 20,000,000 ₹ 30,000,000
- FTE Roles 40 75 130 170 200 - FTE Roles 1 1 1 1 1
- Total Compensation ₹ 9,600,000 ₹ 22,500,000 ₹ 46,800,000 ₹ 73,440,000 ₹ 103,680,000 - Total Compensation ₹ 4,000,000 ₹ 8,000,000 ₹ 12,000,000 ₹ 20,000,000 ₹ 30,000,000

5 IT Support Inhouse 10 CAO

- Average CTC ₹ 800,000 ₹ 880,000 ₹ 968,000 ₹ 1,064,800 ₹ 1,171,280 - Average CTC ₹ - ₹ 5,000,000 ₹ 8,500,000 ₹ 10,200,000 ₹ 12,240,000
- FTE Roles 3 4 5 5 5 - FTE Roles 1 1 1 1
- Total Compensation ₹ 2,400,000 ₹ 3,520,000 ₹ 4,840,000 ₹ 5,324,000 ₹ 5,856,400 - Total Compensation ₹ - ₹ 5,000,000 ₹ 8,500,000 ₹ 10,200,000 ₹ 12,240,000

6 CTO 11 Board of Directors

- Average CTC ₹ 6,000,000 ₹ 9,000,000 ₹ 13,500,000 ₹ 20,250,000 - Directors Remuneration
- FTE Roles 1 1 1 1 - Sitting Fees ₹ 200,000 ₹ 240,000 ₹ 288,000 ₹ 345,600 ₹ 414,720
- Total Compensation ₹ 6,000,000 ₹ 9,000,000 ₹ 13,500,000 ₹ 20,250,000 - FTE Roles 3 3 3 3 3
- Total Compensation ₹ 600,000 ₹ 720,000 ₹ 864,000 ₹ 1,036,800 ₹ 1,244,160

- Total Compensation 70 119 181 232 273

Total in INR ₹ 33,800,000 ₹ 77,570,000 ₹ 130,004,000 ₹ 209,908,300 ₹ 308,555,410
 Commission & Service Fees

Sno Account Head Y1 Y2 Y3 Y4 Y5

1 E-commerce
% Average Commission paid 35% 35% 30% 30% 30%
Revenue from E-commerce 107,727,840 225,324,000 338,401,800 567,648,000 885,528,000
Commission to E-Commerce Platforms ₹ 37,704,744 ₹ 78,863,400 ₹ 101,520,540 ₹ 170,294,400 ₹ 265,658,400

2 Medical Practitioners Tie-Ups

% Average Commission paid 25% 25% 22% 20% 20%
Revenue from Medical Practitioners 26,403,600 81,932,400 177,693,750 289,456,837 462,985,110
Commission to Medicinal Practitioners ₹ 6,600,900 ₹ 20,483,100 ₹ 39,092,625 ₹ 57,891,367 ₹ 92,597,022

3 Exports
% Average Commission paid 15% 14% 13% 12% 12%
Revenue from E-commerce 23,904,000 52,290,000 124,500,000 438,240,000 1,328,000,000
Commission for Exports ₹ 3,585,600 ₹ 7,320,600 ₹ 16,185,000 ₹ 52,588,800 ₹ 159,360,000

Total Commission Paid ₹ 47,891,244 ₹ 106,667,100 ₹ 156,798,165 ₹ 280,774,567 ₹ 517,615,422

 The Hemp Store Projected Balance Sheet

Sr. no Account Head Y1 Y2 Y3 Y4 Y5 Assumptions

A ASSETS

1 Cash ₹ 56,971,170 ₹ 196,288,578 ₹ 125,477,675 ₹ 231,069,468 ₹ 734,414,653

2 PP&E ₹ 36,000,000 ₹ 32,000,000 ₹ 76,000,000 ₹ 60,000,000 ₹ 44,000,000 Assets owned by the company, such as land, buildings, machinery & equipment.

3 Inventory ₹ 12,460,365 ₹ 28,181,152 ₹ 49,552,419 ₹ 84,667,102 ₹ 140,783,830 Refers to the stock of raw materials, work-in-progress goods, and finished goods that the
company holds for manufacturing & resale.

4 Accounts Receivables ₹ 32,390,117 ₹ 73,969,249 ₹ 131,563,672 ₹ 231,635,601 ₹ 400,388,719 These are the amounts owed to the company that have been delivered or rendered but not paid
for

5 Fixed Assets ₹ 2,000,000 ₹ 2,300,000 ₹ 4,400,000 ₹ 3,480,000 ₹ 2,520,000 Furniture and Fixtures & Tech stack

6 Intangible asset ₹ 8,373,333 ₹ 22,029,333 ₹ 35,604,000 ₹ 56,664,533 ₹ 75,552,853 These includes capitalised technology development cost, Branding Expense & R&D costs

7 Total Assets ₹ 148,194,986 ₹ 354,768,312 ₹ 422,597,766 ₹ 667,516,705 ₹ 1,397,660,056

8 EQUITY

9 Share Capital / Paid up Capital ₹ 160,000,000 ₹ 400,000,000 ₹ 400,000,000 ₹ 400,000,000 ₹ 400,000,000 Represents the funds raised by a company from issuing shares of stock to shareholders

10 Retianed Earnings ₹ -39,281,233 ₹ -84,958,494 ₹ -66,631,233 ₹ 142,257,059 ₹ 813,580,218 Cumulative net income or profits retained by the company

11 Total Equity ₹ 120,718,767 ₹ 315,041,506 ₹ 333,368,767 ₹ 542,257,059 ₹ 1,213,580,218

12 LIABILITIES

13 Short-term borrowings ₹ 20,000,000 ₹ 20,000,000 ₹ 50,000,000 ₹ 50,000,000 ₹ 50,000,000

Debt financing obtained by a company, usually in the form of loans or bonds
14 Long-term borrowings ₹ - ₹ - ₹ - ₹ - ₹ -

15 Accounts Payables ₹ 7,476,219 ₹ 19,726,806 ₹ 39,228,998 ₹ 75,259,647 ₹ 134,079,838 Amounts owed by the company to its suppliers or vendors for goods or services received but not
yet paid for

16 Total Liabilities ₹ 27,476,219 ₹ 39,726,806 ₹ 89,228,998 ₹ 125,259,647 ₹ 184,079,838

17 Total Equity & Liability ₹ 148,194,986 ₹ 354,768,312 ₹ 422,597,766 ₹ 667,516,705 ₹ 1,397,660,056

CHECK ₹ - ₹ - ₹ - ₹ - ₹ -
 BS Schedules

Depreciation Schedule (PP&E)

PP&E Additions
Particulars Y1 Y2 Y3 Y4 Y5
PP&E Additions ₹ 40,000,000 ₹ 60,000,000
Business Acquisition (Start from Year 2)
Depreciation ₹ 4,000,000 ₹ 4,000,000 ₹ 16,000,000 ₹ 16,000,000 ₹ 16,000,000
Depreciation Calculation ₹ 4,000,000 ₹ 4,000,000 ₹ 4,000,000 ₹ 4,000,000 ₹ 4,000,000
₹ - ₹ - ₹ - ₹ -
₹ 12,000,000 ₹ 12,000,000 ₹ 12,000,000
₹ - ₹ -
₹ -
Accumulated Depreciation ₹ 4,000,000 ₹ 8,000,000 ₹ 24,000,000 ₹ 40,000,000 ₹ 56,000,000
Closing Balance of Fixed Assets ₹ 36,000,000 ₹ 32,000,000 ₹ 76,000,000 ₹ 60,000,000 ₹ 44,000,000

Depreciation Schedule (Fixed Assets)

Fixed Assets
Particulars Y1 Y2 Y3 Y4 Y5
Fixed Assets Addition ₹ 2,500,000 ₹ 1,000,000 ₹ 3,500,000 ₹ 600,000 ₹ 700,000
Depreciation ₹ 500,000 ₹ 700,000 ₹ 1,400,000 ₹ 1,520,000 ₹ 1,660,000
₹ 500,000 ₹ 500,000 ₹ 500,000 ₹ 500,000 ₹ 500,000
₹ 200,000 ₹ 200,000 ₹ 200,000 ₹ 200,000
Depreciation Calculation ₹ 700,000 ₹ 700,000 ₹ 700,000
₹ 120,000 ₹ 120,000
₹ 140,000
Accumulated Depreciation ₹ 500,000 ₹ 1,200,000 ₹ 2,600,000 ₹ 4,120,000 ₹ 5,640,000
Closing Balance of Fixed Assets ₹ 2,000,000 ₹ 2,300,000 ₹ 4,400,000 ₹ 3,480,000 ₹ 2,520,000
 BS Schedules

Amortization Schedule
Intangible Assets
Particulars Y1 Y2 Y3 Y4 Y5
Branding Addition ₹ 6,666,667 ₹ 6,666,667 ₹ 6,666,667 ₹ 16,666,667 ₹ 16,666,667
Technology Development Addition ₹ 2,400,000 ₹ 9,520,000 ₹ 13,840,000 ₹ 18,824,000 ₹ 26,106,400
R&D ₹ 1,400,000 ₹ 3,500,000 ₹ 4,000,000 ₹ 4,500,000 ₹ 4,500,000
Intangible Invesments ₹ 10,466,667 ₹ 19,686,667 ₹ 24,506,667 ₹ 39,990,667 ₹ 47,273,067
₹ 2,093,333 ₹ 2,093,333 ₹ 2,093,333 ₹ 2,093,333 ₹ 2,093,333
₹ 3,937,333 ₹ 3,937,333 ₹ 3,937,333 ₹ 3,937,333
Amortization Calculation ₹ 4,901,333 ₹ 4,901,333 ₹ 4,901,333
₹ 7,998,133 ₹ 7,998,133
₹ 9,454,613
Amortization ₹ 2,093,333 ₹ 6,030,667 ₹ 10,932,000 ₹ 18,930,133 ₹ 28,384,747
Accumulated Amortization ₹ 2,093,333 ₹ 8,124,000 ₹ 19,056,000 ₹ 37,986,133 ₹ 66,370,880
Closing Balance of Intangibles ₹ 8,373,333 ₹ 22,029,333 ₹ 35,604,000 ₹ 56,664,533 ₹ 75,552,853

Technology Development Branding Research & Development (R&D)

Particulars Particulars Particulars
UI/UX Designing & Development Branding Identity Testing & Validation
Front & Backent Development Content Creation Sample Development
Infrastructure & Hosting Brand Merchandise & Giveaway Clinical Trials
Intrgration & Third Party Hosting Brand Ambassador

Interest/Borrowings Schedule
Borrowings
Particulars Y1 Y2 Y3 Y4 Y5
Short Term Loan Additions ₹ 20,000,000 ₹ 20,000,000 ₹ 50,000,000 ₹ 50,000,000 ₹ 50,000,000
Long-term Loan Additions
Total Borrowings ₹ 20,000,000 ₹ 20,000,000 ₹ 50,000,000 ₹ 50,000,000 ₹ 50,000,000
Interest Calculation for short term ₹ 2,400,000 ₹ 2,400,000 ₹ 6,000,000 ₹ 6,000,000 ₹ 6,000,000
₹ - ₹ - ₹ - ₹ -
₹ - ₹ - ₹ -
Interest Calculation for Long term
₹ - ₹ -
₹ -
Closing Borrowings ₹ - ₹ - ₹ - ₹ - ₹ -
Total Interest ₹ 2,400,000 ₹ 2,400,000 ₹ 6,000,000 ₹ 6,000,000 ₹ 6,000,000
 BS Schedules
Inventory
Particulars Y1 Y2 Y3 Y4 Y5
Average Inventory Days (Industry Based) 50 50 48 45 42
COGS ₹ 90,960,662 ₹ 205,722,408 ₹ 376,804,854 ₹ 686,744,275 ₹ 1,223,478,520
Total Days 365 365 365 365 365

Total Inventory ₹ 12,460,365 ₹ 28,181,152 ₹ 49,552,419 ₹ 84,667,102 ₹ 140,783,830

Accounts Receivables
Particulars Y1 Y2 Y3 Y4 Y5
Average Receivable Days (Current) 45 45 43 40 37
Receivable Revenue ₹ 262,719,840 ₹ 599,972,800 ₹ 1,116,761,400 ₹ 2,113,674,862 ₹ 3,949,780,610
Total Days 365 365 365 365 365

Total Recerivables ₹ 32,390,117 ₹ 73,969,249 ₹ 131,563,672 ₹ 231,635,601 ₹ 400,388,719

Accounts Payables
Particulars Y1 Y2 Y3 Y4 Y5
Average Payable Days (Current) 30 35 38 40 40
COGS ₹ 90,960,662 ₹ 205,722,408 ₹ 376,804,854 ₹ 686,744,275 ₹ 1,223,478,520
Total Days 365 365 365 365 365

Total Payables ₹ 7,476,219 ₹ 19,726,806 ₹ 39,228,998 ₹ 75,259,647 ₹ 134,079,838

 Cashflow Statement

PARTICULARS Year 1 Year 2 Year 3 Year 4 Year 5

Profit/Loss ₹ -39,281,233 ₹ -45,677,261 ₹ 18,327,262 ₹ 208,888,291 ₹ 671,323,159
Add Non - cash charges
- Depreciation of PP&E ₹ 4,000,000 ₹ 4,000,000 ₹ 16,000,000 ₹ 16,000,000 ₹ 16,000,000
- Depreciation of Fixed assets ₹ 500,000 ₹ 700,000 ₹ 1,400,000 ₹ 1,520,000 ₹ 1,660,000
- Amortization expense ₹ 2,093,333 ₹ 6,030,667 ₹ 10,932,000 ₹ 18,930,133 ₹ 28,384,747
- Finance cost ₹ 2,400,000 ₹ 2,400,000 ₹ 6,000,000 ₹ 6,000,000 ₹ 6,000,000
Working Capital Changes
- Changes in Payables ₹ 7,476,219 ₹ 12,250,587 ₹ 19,502,192 ₹ 36,030,648 ₹ 58,820,191
- Changes in Receivables ₹ -32,390,117 ₹ -41,579,132 ₹ -57,594,422 ₹ -100,071,930 ₹ -168,753,118
- Changes in Inventory ₹ -12,460,365 ₹ -15,720,787 ₹ -21,371,267 ₹ -35,114,683 ₹ -56,116,727
Cash Flow from Operations (CFO) ₹ -67,662,163 ₹ -77,595,926 ₹ -6,804,236 ₹ 152,182,460 ₹ 557,318,252

Acquisition of PP&E ₹ -36,000,000 ₹ 4,000,000 ₹ -44,000,000 ₹ 16,000,000 ₹ 16,000,000

(Less): Depreciation of PP&E ₹ -4,000,000 ₹ -4,000,000 ₹ -16,000,000 ₹ -16,000,000 ₹ -16,000,000
Acquisition of Fixed assets ₹ -2,000,000 ₹ -300,000 ₹ -2,100,000 ₹ 920,000 ₹ 960,000
(Less): Depreciation of Fixed asset ₹ -500,000 ₹ -700,000 ₹ -1,400,000 ₹ -1,520,000 ₹ -1,660,000
Purchase of Intangible assets ₹ -8,373,333 ₹ -13,656,000 ₹ -13,574,667 ₹ -21,060,533 ₹ -18,888,320
(Less): Amortization of Intangibles ₹ -2,093,333 ₹ -6,030,667 ₹ -10,932,000 ₹ -18,930,133 ₹ -28,384,747
Cash Flow from Investing (CFI) ₹ -52,966,667 ₹ -20,686,667 ₹ -88,006,667 ₹ -40,590,667 ₹ -47,973,067

Equity ₹ 160,000,000 ₹ 240,000,000 ₹ - ₹ - ₹ -

Proceeds from borrowings ₹ 20,000,000 ₹ - ₹ 30,000,000 ₹ - ₹ -
(Less) Finance Cost ₹ -2,400,000 ₹ -2,400,000 ₹ -6,000,000 ₹ -6,000,000 ₹ -6,000,000
Cash Flow from Financing (CFF) ₹ 177,600,000 ₹ 237,600,000 ₹ 24,000,000 ₹ -6,000,000 ₹ -6,000,000

Opening cash ₹ - ₹ 56,971,170 ₹ 196,288,578 ₹ 125,477,675 ₹ 231,069,468

Net Cash Flow ₹ 56,971,170 ₹ 139,317,407 ₹ -70,810,903 ₹ 105,591,793 ₹ 503,345,185
Closing cash ₹ 56,971,170 ₹ 196,288,578 ₹ 125,477,675 ₹ 231,069,468 ₹ 734,414,653
 DCF Valuation

FCFE = NI + NCC - Fixed Asset Inv - Changes in Working Capital + Net borrowings

Cost of Capital 28.79% Terminal Growth rate 7%

In Rs. Valuation Amount

Particulars Y1 Y2 Y3 Y4 Y5
Net Income ₹ -39,281,233 ₹ -45,677,261 ₹ 18,327,262 ₹ 208,888,291 ₹ 671,323,159 Value to of Company ₹ 1,144,177,752
Depreciation & Amortization ₹ 6,593,333 ₹ 10,730,667 ₹ 28,332,000 ₹ 36,450,133 ₹ 46,044,747
Capex ₹ -38,000,000 ₹ 3,700,000 ₹ -46,100,000 ₹ 16,920,000 ₹ 16,960,000 DLOC & DLOM (15%) ₹ 171,626,663
Changes in Working Capital ₹ -37,374,263 ₹ -45,049,332 ₹ -59,463,498 ₹ -99,155,965 ₹ -166,049,654
Net borrowing ₹ 20,000,000 ₹ - ₹ 30,000,000 ₹ - ₹ - Value to Equity Shareholders ₹ 972,551,089
FCFE ₹ -88,062,163 ₹ -76,295,926 ₹ -28,904,236 ₹ 163,102,460 ₹ 568,278,252
Terminal Value [ FCFE*(1+g) / Ke - g ] ₹ 2,822,267,658 Value in INR Crores (Post Money) ₹ 97
Sum ₹ -88,062,163 ₹ -76,295,926 ₹ -28,904,236 ₹ 163,102,460 ₹ 3,390,545,909
Discount Factor 1.00 0.78 0.60 0.47 0.36 Value in INR Crores (Pre Money) ₹ 73
Present Value ₹ -88,062,163 ₹ -59,242,740 ₹ -17,427,258 ₹ 76,359,287 ₹ 1,232,550,625
 Assumptions & Sensitivity Analysis

Sensitivity Analysis (Valuation in INR Crores) Calculation of Cost of Capital

Long-term Growth Rate
₹ 73.3 6% 6.5% 7% 8.0% 9%
20% ₹ 162.2 ₹ 176.5 ₹ 187.8 ₹ 202.4 ₹ 212.5 Risk Free Rate of return 7.20%
23% ₹ 117.4 ₹ 126.4 ₹ 133.4 ₹ 142.1 ₹ 148.1 Risk Premium 22%
Cost of Equity

26% ₹ 86.5 ₹ 92.6 ₹ 97.2 ₹ 102.9 ₹ 106.7 Cost of Capital 28.79%

28.8% ₹ 65.5 ₹ 69.9 ₹ 73.1 ₹ 77.2 ₹ 79.8
32% ₹ 47.5 ₹ 50.6 ₹ 52.9 ₹ 55.7 ₹ 57.6 Calculation of Risk Premium
35% ₹ 34.5 ₹ 36.9 ₹ 38.6 ₹ 40.7 ₹ 42.1 Expected Market Return 15.83%
40% ₹ 18.7 ₹ 20.2 ₹ 21.4 ₹ 22.7 ₹ 23.6 Risk Free Rate 7.20%
Beta (Competitor Average) 2.5
Risk Premium 21.6%

Expected Market Returns

05-02-1999 (BSE 500) 977
3/31/2024 32,300
Return on BSE 500 15.83%
Expected Market Returns 15.83%
 Beta Working

Category Sub - Category +1 0.5 0 -0.5 -1 Beta Calculation

Maturity of technology Technology still in initial experimental phase Technology successful on a laboratory scale Technology successful in pilot plan Technology successful in demo plant Technology successful in technical application 0

Advantages compared to competitive technologies No advantages identified Advantages not clearly identifiable Costs or quality advantages identifiable Costs and quality advantages identifiable Significant costs and quality advantages identifiabl 0

Manufacturing Process Manual/Labor Intensive process Semi-automated process Fully automated process Advanced manufacturing techniques Cutting-edge manufacturing technologies (e.g., -0.5
nanotechnology, bioengineering)

Supply chain Management Manual/Paper based Tracking Basic Inventory Management System Integrated Supply chain management System Advanced Supply chain management System Real time End to end Supply chain visibility -0.5

Technology & Operations

Quality Control Manual Inspections Basic Quality Control Procedures Established quality management system (e.g., ISO 9001) Advanced quality control techniques (e.g., Six Sigma, Cutting-edge quality control technologies (e.g., machine 0
Lean Manufacturing) learning, artificial intelligence)

Production Capacity Limited production capacity Adequate production capacity for current Excess production capacity Scalable production capacity to meet future growth Highly flexible and adaptable production capacity 0
demand

Sustainable Practices No sustainable practices in place Basic sustainability initiatives (e.g., recycling, Comprehensive sustainability program (e.g., renewable Innovative sustainable technologies (e.g., carbon Industry-leading sustainable practices and technologies 0.5
energy efficiency) energy, waste reduction) capture, circular economy)

Reputation of Tech Team No reputation Poor reputation Moderate reputation Good reputation Very good reputation 0

Product benefits Product benefits not identifiable Product benefits not clearly identifiable Product benefits clearly identifiable Product benefits confirmed by first clients Product benefits confirmed by numerous clients -0.5

Unique selling proposition Unique selling proposition not identifiable Unique selling proposition not clearly Unique selling proposition clearly identifiable Unique selling proposition confirmed Unique selling proposition confirmed by numerous clients -0.5
identifiable
Products
Scalability Very low scalability Low scalability Moderate scalability High scalability Very high scalability -0.5

Competition Currently strong competition Potentially strong competition Moderate competition Low competition Long-term low competition 0.5

Business Plan Business plan unjustifiable Business plan with open questions Business plan plausible Business plan occasionally proven Business plan frequently proven 0.5

Technical development plan Technical development plan unjustifiable Technical development plan difficult to justify Technical development plan justifiable Technical development plan likely to be feasible Technical development plan very likely to be feasible 0.5
Implementation

Marketing plan Marketing plan unjustifiable Marketing plan difficult under process Marketing plan justifiable Marketing plan likely to be feasible Marketing plan very likely to be feasible 0.5

Business development plan Business development plan unjustifiable Business development plan under process Business development plan justifiable Business development plan likely to be feasibl Business development plan very likely to be feasible 0.5

Competences of the management team Management team with major flaws Building Management team Management team is complete Management team is complete and competen Management team is complete and very competent 0.5

Headquarters location Headquarters location problematic Headquarters location can be improved Headquarters location is fine Headquarters location has advantages Headquarters location has many advantages 0
Organisation

Competences of advisory board Very low level of competences of advisory Low level of competences of advisory board/ Moderate level of competences of advisory board/ High level of competences of advisory board/ Very high level of competences of advisory board/ consultants -0.5
board/ consultants consultants consultants consultants

Process efficiency Process inefficient Process not very efficient Process efficient Process very efficient Process exceptionally efficient 0

Sales plan Sales plan unjustifiable Sales plan needs to be implemented Sales plan justifiable Sales plan conservative Sales plan very conservative 0.5

Costs Plan Costs plan unjustifiable Costs plan difficult to justify Costs plan justifiable Costs plan conservative Costs plan very conservative 0.5
Finances
Profitability Fundamentally low profitability Risk of low profitability High Potential profitability Currently high profitability Fundamentally high profitabilit 0

Liquidity Plan Financial resources for next year are not secured Financial resources for next year are secured Financial resources for next 2 years are secured Financial resources for next 3 years are secured Financial resources for next 4 years are secured 1

Total Beta 2.5

 The Hemp Store Revenue Projections

Particulars Y1 Y2 Y3 Y4 Y5

Product Sale
Revenue from E-commerce Platform 107,727,840 225,324,000 338,401,800 567,648,000 885,528,000
Revenue from Medical Practitioners 26,403,600 81,932,400 177,693,750 289,456,837 462,985,110
Revenue from Website 97,934,400 203,126,400 379,209,600 616,814,400 907,080,000

Total Revenue from Product Sale ₹ 232,065,840 ₹ 510,382,800 ₹ 895,305,150 ₹ 1,473,919,237 ₹ 2,255,593,110

B2B Tie Ups

No. of Tie Ups 29 97 179 292 415
Hospitals 1,000,000 2,625,000 6,750,000 12,431,250 23,765,625
Wellness Centres 625,000 1,875,000 4,781,250 10,968,750 28,518,750
Gym/Fitness Centre 625,000 3,750,000 11,250,000 23,765,625 42,778,125
Hotels 3,000,000 18,000,000 40,500,000 87,750,000 148,297,500
Spas 500,000 3,000,000 11,250,000 23,400,000 41,827,500

Revenue from B2B Tie-Ups ₹ 5,750,000 ₹ 29,250,000 ₹ 74,531,250 ₹ 158,315,625 ₹ 285,187,500

Corporate Gifting
No. of Corporate Tie-ups 10 40 75 120 200
Average value of Giftings 1,000 1,150 1,300 1,500 1,500
Total no. of Employees Gifted 500 4,000 11,250 18,000 30,000
Total no. of Gifted Clients 500 3,000 6,000 10,800 24,000

Revenue from Corporate Gifting ₹ 1,000,000 ₹ 8,050,000 ₹ 22,425,000 ₹ 43,200,000 ₹ 81,000,000

Exports
No. of Product Sale 12,000 15,000 20,000 55,000 100,000
Average value of product sale $ 12 $ 14 $ 15 $ 16 $ 16
No. of Countries 2 3 5 6 10

Revenue from Exports (in $) $ 288,000 $ 630,000 $ 1,500,000 $ 5,280,000 $ 16,000,000

Revenue from Exports (in INR) ₹ 23,904,000 ₹ 52,290,000 ₹ 124,500,000 ₹ 438,240,000 ₹ 1,328,000,000

Total revenue (In INR) ₹ 262,719,840 ₹ 599,972,800 ₹ 1,116,761,400 ₹ 2,113,674,862 ₹ 3,949,780,610

 The Hemp Store KPI

Platform Metrics No. of B2B Tie Ups

- Hospitals, Wellness/Fitness Centre, Gyms, Spas
Particulars Y1 Y2 Y3 Y4 Y5
E-commerce (Per month) 120,000 220,000 300,000 450,000 600,000 Particulars Y1 Y2 Y3 Y4 Y5
Footfalls 1,440,000 2,640,000 3,600,000 5,400,000 7,200,000 Hospitals 4 7 12 17 25
% Conversion 22% 25% 27% 30% 35% Wellness Centres 5 10 17 30 60
Sale Conversion 316,800 660,000 972,000 1,620,000 2,520,000 Gym/Fitness Centre 5 20 40 65 90
Hotels 10 40 60 100 130
Medical Practitioners Spas 5 20 50 80 110
Footfalls 96,000 288,000 585,000 943,500 1,500,000 Total Tie-Ups 29 97 179 292 415
% Conversion 75% 75% 75% 75% 75%
Sale Conversion 72,000 216,000 438,750 707,625 1,125,000
Revenue from B2B sale
Website (Per month) 240,000 400,000 600,000 800,000 1,000,000 - Hospitals, Wellness/Fitness Centre, Gyms, Spas
Footfalls 2,880,000 4,800,000 7,200,000 9,600,000 12,000,000
% Conversion 10% 12% 14% 17% 20% Particulars Y1 Y2 Y3 Y4 Y5
Sale Conversion 288,000 576,000 1,008,000 1,632,000 2,400,000 Hospitals 1,000,000 2,625,000 6,750,000 12,431,250 23,765,625
Revenue Per hospital 250,000 375,000 562,500 731,250 950,625

Product SKU Metrics Wellness Centres 625,000 1,875,000 4,781,250 10,968,750 28,518,750
Revenue Per Wellness Centre 125,000 187,500 281,250 365,625 475,313
Particulars Y1 Y2 Y3 Y4 Y5
Pain Care Gym/Fitness Centre 625,000 3,750,000 11,250,000 23,765,625 42,778,125
No. of SKU 4 6 7 8 10 Revenue Per Wellness Centre 125,000 187,500 281,250 365,625 475,313
Average Product value 285 285 285 285 285
% Share in Sales 40% 40% 38% 38% 38% Hotels 3,000,000 18,000,000 40,500,000 87,750,000 148,297,500
Omega 3-6-9 Revenue Per Hotels 300,000 450,000 675,000 877,500 1,140,750
No. of SKU 1 1 2 2 3
Average Product value 500 500 500 500 500 Spas 500,000 3,000,000 11,250,000 23,400,000 41,827,500
% Share in Sales 25% 25.0% 24% 24% 24% Revenue Per Hotels 100,000 150,000 225,000 292,500 380,250
Cold & Cough
No. of SKU 3 4 5 6 6 Total Tie-Ups 5,750,000 29,250,000 74,531,250 158,315,625 285,187,500
Average Product value 210 220 225 230 240
% Share in Sales 13% 10.0% 10% 10% 10%
Skin & Hair Care No. of Corporate Tie-Ups
No. of SKU 4 8 10 12 14
Average Product value 325 330 330 330 330 Particulars Y1 Y2 Y3 Y4 Y5
% Share in Sales 13% 11.0% 9% 9% 9% No. of Corporate 10 40 75 120 200
Dental Care No. of Employees 50 100 150 150 150
No. of SKU 2 2 3 4 No. of Gifting Clients 50 75 80 90 120
Average Product value 260 270 270 270
% Share in Sales 7.0% 7% 7% 7%
Digestive Care Average Gifting Value per Client
No. of SKU 2 3 3
Average Product value 450 450 450 Y1 Y2 Y3 Y4 Y5
% Share in Sales 5.0% 5.0% 5.0% ₹ 1,000 ₹ 1,150 ₹ 1,300 ₹ 1,500 ₹ 1,500
Other Categories
Average Product value 350 370 375 400 400 No. of Meditional Practitioner Tie-ups
% Share in Sales 9.0% 7.0% 7% 7% 7%
Extract Oils (Only Sold across Offline stores and through Medical Prescription) Particulars Current Y1 Y2 Y3 Y4 Y5
No. of SKU 2 3 5 5 6 New Tie-ups 10 40 50 55 65
Average Product value 1,000 1,000 1,080 1,166 1,260 Total Tie ups 30 40 80 130 185 250

Totak SKUs 16 26 36 43 50
Average Product Value 340 341 348 350 351 Medical Practitioners Footfalls
Total Share 100.0% 100.0% 100.0% 100.0% 100.0%
Particulars Y1 Y2 Y3 Y4 Y5
Avg Daily Consultation per Clinic 8 12 15 17 20
Revenue Metrics No. of Tie-ups 40 80 130 185 250
Total Consultation per Year 96,000 288,000 585,000 943,500 1,500,000
Particulars Y1 Y2 Y3 Y4 Y5
E-Commerce Customers 316,800 660,000 972,000 1,620,000 2,520,000
Pain Care ₹ 36,115,200 ₹ 75,240,000 ₹ 105,267,600 ₹ 175,446,000 ₹ 272,916,000 Extract Oils Sale
Omega 3-6-9 ₹ 39,600,000 ₹ 82,500,000 ₹ 116,640,000 ₹ 194,400,000 ₹ 302,400,000
Cold & Cough ₹ 8,648,640 ₹ 14,520,000 ₹ 21,870,000 ₹ 37,260,000 ₹ 60,480,000 Particulars Y1 Y2 Y3 Y4 Y5
Skin & Hair Care ₹ 13,384,800 ₹ 23,958,000 ₹ 28,868,400 ₹ 48,114,000 ₹ 74,844,000 Medical Practitioners Footfalls 96,000 288,000 585,000 943,500 1,500,000
Dental Care ₹ - ₹ 12,012,000 ₹ 18,370,800 ₹ 30,618,000 ₹ 47,628,000 % Conversion 2% 2% 2% 2% 2%
Digestive Care ₹ - ₹ - ₹ 21,870,000 ₹ 36,450,000 ₹ 56,700,000 Sale Conversion 1,920 5,760 11,700 18,870 30,000
Other Categories ₹ 9,979,200 ₹ 17,094,000 ₹ 25,515,000 ₹ 45,360,000 ₹ 70,560,000 Average Product value 1,000 1,000 1,080 1,166 1,260
Total E-commerce Sales 107,727,840 225,324,000 338,401,800 567,648,000 885,528,000 Sales value 1,920,000 5,760,000 12,636,000 22,009,968 37,791,360

Medical Practitioners 72,000 216,000 438,750 707,625 1,125,000

Pain Care ₹ 8,208,000 ₹ 24,624,000 ₹ 50,017,500 ₹ 80,669,250 ₹ 128,250,000 No. of Countries
Omega 3-6-9 ₹ 9,000,000 ₹ 27,000,000 ₹ 54,843,750 ₹ 88,453,125 ₹ 140,625,000
Cold & Cough ₹ 1,965,600 ₹ 5,896,800 ₹ 11,977,875 ₹ 19,318,163 ₹ 30,712,500 Y1 Y2 Y3 Y4 Y5
Skin & Hair Care ₹ 3,042,000 ₹ 9,126,000 ₹ 18,537,188 ₹ 29,897,156 ₹ 47,531,250 2 3 5 6 10
Dental Care ₹ - ₹ 3,931,200 ₹ 8,292,375 ₹ 13,374,113 ₹ 21,262,500
Digestive Care ₹ - ₹ - ₹ 9,871,875 ₹ 15,921,563 ₹ 25,312,500
Other Categories ₹ 2,268,000 ₹ 5,594,400 ₹ 11,517,188 ₹ 19,813,500 ₹ 31,500,000 Average No. of product Exported
Extract Oils ₹ 1,920,000 ₹ 5,760,000 ₹ 12,636,000 ₹ 22,009,968 ₹ 37,791,360
Total Product sale from Medical Practitioners ₹ 26,403,600 ₹ 81,932,400 ₹ 177,693,750 ₹ 289,456,837 ₹ 462,985,110 Y1 Y2 Y3 Y4 Y5
12,000 15,000 20,000 55,000 100,000
Website 288,000 576,000 1,008,000 1,632,000 2,400,000
Pain Care ₹ 32,832,000 ₹ 65,664,000 ₹ 114,912,000 ₹ 186,048,000 ₹ 273,600,000
Omega 3-6-9 ₹ 36,000,000 ₹ 72,000,000 ₹ 126,000,000 ₹ 204,000,000 ₹ 300,000,000 Average value of product Exported
Cold & Cough ₹ 7,862,400 ₹ 15,724,800 ₹ 27,518,400 ₹ 44,553,600 ₹ 65,520,000
Skin & Hair Care ₹ 12,168,000 ₹ 24,336,000 ₹ 42,588,000 ₹ 68,952,000 ₹ 101,400,000 Y1 Y2 Y3 Y4 Y5
Dental Care ₹ - ₹ 10,483,200 ₹ 19,051,200 ₹ 30,844,800 ₹ 45,360,000 $ 12 $ 14 $ 15 $ 16 $ 16
Digestive Care ₹ - ₹ - ₹ 22,680,000 ₹ 36,720,000 ₹ 54,000,000
Other Categories ₹ 9,072,000 ₹ 14,918,400 ₹ 26,460,000 ₹ 45,696,000 ₹ 67,200,000
Total Website Sales ₹ 97,934,400 ₹ 203,126,400 ₹ 379,209,600 ₹ 616,814,400 ₹ 907,080,000 No. of R&D Man hours

Current Y1 Y2 Y3 Y4 Y5
7,000 1,250 1,750 2,000 2,250 2,250