Operating calendar
Hours, days, months, utilisation, downtime and ramp-up determine saleable tonnes—not nameplate capacity alone.
Financial Modelling
A financial model should explain why the project makes money—and where it can run out of cash.
We build from operating drivers upward, then test the statements, debt schedule and return metrics for internal consistency and downside resilience.
Model architecture
Start with physical drivers, not desired returns.
Capacity & Calendar→Feedstock & Yield→Saleable Volume→Price & Cost→Debt / WC→Statements→Returns
Material conversion
Incoming quantity, moisture, process loss and yield link feedstock procurement to finished product output.
Price basis
Product specification, rate convention, escalation and sales mix determine realised revenue assumptions.
Working capital cycle
Inventory build, receivables, supplier credit and seasonal stocking influence cash requirements before profit is realised.
Funding structure
Promoter contribution, term debt, moratorium, principal and CC utilisation are modelled separately.
Statement linkage
Profit, cash and balance-sheet movement reconcile so one attractive metric cannot hide a broken schedule elsewhere.
What we testSupply stress Demand stress Commercial stress
Returns are outputs. Thresholds are decisions.
IRR or NPV alone does not tell the promoter which operational variable deserves management attention. The model is used to locate the conditions that materially change viability.
What if feedstock becomes expensive?
Measure the margin and working-capital effect of raw-material price or transport escalation.
What if utilisation ramps slowly?
See how delayed volume affects fixed-cost absorption, debt service and cash generation.
What selling price is actually required?
Identify the price and contribution threshold needed to meet the promoter’s financing constraints.
Model integrity
Seven errors we refuse to let hide inside a projection
- Sources of finance not reconciling with uses
- Loan principal becoming negative or repaid beyond the original debt
- Balance sheet failing to balance in a projected year
- Closing cash not matching cash-flow movement
- NPV calculated without the time-zero investment
- Project return and promoter equity return mixed together
- Debt service appearing comfortable only because working capital is understated
Decision outputs
The promoter should leave the model knowing the operating boundaries.
₹
Capital requirement
How much fixed investment and working capital the project really needs.
%
Return profile
Project IRR, equity IRR and NPV calculated from the correct cash-flow perspective.
DSCR
Debt capacity
Whether projected cash generation supports the proposed repayment structure.
Limit
Stress threshold
The utilisation, price or raw-material movement that turns a comfortable case into a weak one.
Start with clarity
Use the model to define operating boundaries before negotiating the funding structure.
Share the available cost, capacity, price and feedstock assumptions for a model review.