FURNITURE FACTORY SETUP — INDIA · REVISED 26 OCTOBER 2026
Cabinet Making Packages — Plan Comparison
Six plans from 25 to 1,000 boards/day, tested against illustrative bank screening criteria at 60% OEE, ₹300 revenue and ₹200 all-in material per saleable sq ft, ₹40k salary, 30:70 funding. Values in ₹ Cr unless noted.
KPI (₹ Cr unless noted)
| 25
| 50
| 75
| 100
| 500
| 1000
|
|---|
Machine-rated capacity (boards/day)
| 25
| 50
| 75
| 100
| 833
| 1,667
|
Accepted board throughput @ 60% OEE (25–100 named by rated capacity, 1 shift; 500/1000 named by accepted throughput, 2 shifts)
| 15 bd/day
| 30 bd/day
| 45 bd/day
| 60 bd/day
| 500 bd/day
| 1000 bd/day
|
CAPITAL & FUNDING
|
Machine package price (GST extra)
| ₹0.23
| ₹0.38
| ₹0.665
| ₹1.135
| ₹20.00
| ₹40.00
|
Supporting equipment quoted separately (GST extra)
| ₹0.229
| ₹0.281
| ₹0.349
| ₹0.70
| In package price
| In package price
|
Total equipment investment
| ₹0.459
| ₹0.661
| ₹1.014
| ₹1.835
| ₹20.00
| ₹40.00
|
Other fixed assets (electricals, IT, racking)
| ₹0.13
| ₹0.26
| ₹0.39
| ₹0.51
| ₹4.28
| ₹8.57
|
Working capital (net)
| ₹0.55
| ₹1.11
| ₹1.66
| ₹2.21
| ₹15.91
| ₹31.81
|
Total project cost
| ₹1.14
| ₹2.03
| ₹3.06
| ₹4.56
| ₹40.19
| ₹80.38
|
Promoter / margin money
| ₹0.34
| ₹0.61
| ₹0.92
| ₹1.37
| ₹12.06
| ₹24.11
|
Term loan
| ₹0.41
| ₹0.64
| ₹0.98
| ₹1.64
| ₹17.00
| ₹34.00
|
Cash credit
| ₹0.39
| ₹0.78
| ₹1.16
| ₹1.55
| ₹11.13
| ₹22.27
|
Total bank borrowing
| ₹0.80
| ₹1.42
| ₹2.14
| ₹3.19
| ₹28.13
| ₹56.27
|
INFRA & MANPOWER
|
Factory area (sqft)
| 5,000
| 10,000
| 15,000
| 20,000
| 100,000
| 200,000
|
Headcount
| 10
| 20
| 30
| 40
| 200
| 400
|
P&L (YEAR 1)
|
Revenue
| ₹3.67
| ₹7.34
| ₹11.02
| ₹14.69
| ₹122.40
| ₹244.80
|
COGS (material)
| ₹2.45
| ₹4.90
| ₹7.34
| ₹9.79
| ₹81.60
| ₹163.20
|
Gross profit
| ₹1.22
| ₹2.45
| ₹3.67
| ₹4.90
| ₹40.80
| ₹81.60
|
Salary
| ₹0.48
| ₹0.96
| ₹1.44
| ₹1.92
| ₹9.60
| ₹19.20
|
Overheads
| ₹0.22
| ₹0.44
| ₹0.66
| ₹0.88
| ₹4.90
| ₹9.79
|
EBITDA
| ₹0.52
| ₹1.05
| ₹1.57
| ₹2.09
| ₹26.30
| ₹52.61
|
Depreciation
| ₹0.07
| ₹0.10
| ₹0.16
| ₹0.26
| ₹2.83
| ₹5.66
|
Interest
| ₹0.09
| ₹0.16
| ₹0.24
| ₹0.35
| ₹3.17
| ₹6.34
|
PBT
| ₹0.37
| ₹0.79
| ₹1.18
| ₹1.48
| ₹20.30
| ₹40.61
|
Tax (30%)
| ₹0.11
| ₹0.24
| ₹0.35
| ₹0.44
| ₹6.09
| ₹12.18
|
PAT
| ₹0.26
| ₹0.55
| ₹0.82
| ₹1.04
| ₹14.21
| ₹28.42
|
OPERATING CYCLE (DAYS)
|
Debtor / Inventory / Creditor
| 45/39/45
| 45/39/45
| 45/39/45
| 45/39/45
| 45/35/45
| 45/35/45
|
KEY RATIOS
|
EBITDA margin (%)
| 14.3%
| 14.3%
| 14.3%
| 14.3%
| 21.5%
| 21.5%
|
ROCE (%)
| 36.1%
| 40.0%
| 39.8%
| 36.3%
| 46.0%
| 46.0%
|
PAT on initial promoter equity (%)
| 75.2%
| 90.6%
| 89.8%
| 75.7%
| 117.9%
| 117.9%
|
ROE on average equity (%)
| 54.6%
| 62.4%
| 62.0%
| 54.9%
| 74.2%
| 74.2%
|
DSCR (×)
| 2.06×
| 2.58×
| 2.54×
| 2.06×
| 3.61×
| 3.61×
|
Combined-stress Year-1 DSCR (×)
| 0.19×
| 0.25×
| 0.24×
| 0.19×
| 1.57×
| 1.57×
|
Current ratio (×)
| 1.26×
| 1.35×
| 1.34×
| 1.26×
| 1.61×
| 1.61×
|
Quick ratio (×)
| 0.95×
| 1.03×
| 1.02×
| 0.95×
| 1.29×
| 1.29×
|
Initial bank debt ÷ promoter equity (×)
| 2.33×
| 2.33×
| 2.33×
| 2.33×
| 2.33×
| 2.33×
|
Interest coverage (EBITDA ÷ interest, ×)
| 5.97×
| 6.66×
| 6.62×
| 5.98×
| 8.29×
| 8.29×
|
COST OF CAPITAL
|
WACC post-tax (%)
| 11.3%
| 11.3%
| 11.3%
| 11.3%
| 11.3%
| 11.3%
|
ROCE − WACC spread (pp)
| 24.8
| 28.7
| 28.5
| 25.0
| 34.7
| 34.7
|
COVERAGE AND PAYBACK (YEARS)
|
Cash-accrual coverage, bank finance (not a repayment date)
| 2.5
| 2.2
| 2.2
| 2.5
| 1.7
| 1.7
|
Cash-accrual coverage, total funding
| 3.5
| 3.1
| 3.1
| 3.5
| 2.4
| 2.4
|
Project free-cash-flow payback
| 2.8
| 2.5
| 2.6
| 2.8
| 2.0
| 2.0
|
Illustrative screening criteria, not bank sanction terms. In the base case all six plans meet DSCR ≥ 1.5×, current ratio ≥ 1.33×, quick ratio ≥ 1.0×, Year-1 D/E ≤ 2.0×, ROCE ≥ 12%, ROE ≥ 18%, EBITDA margin ≥ 12%, PAT margin ≥ 5% and coverage ≤ 5 years. Initial bank debt ÷ equity is 2.33× before Year-1 profits.
Sensitivity: in the combined stress case (volume −15%, price −5%, material +5%, interest 13%, debtors 60 days) the 25–100 plans make a Year-1 loss (DSCR 0.19–0.25×), while the 500 and 1,000 plans hold 1.57×. With a 70% first-year ramp-up, Year-1 DSCR is 0.74–0.90× for 25–100 and 2.07× for 500/1,000.
5-year basis: Year-1 figures are unchanged. Years 2–5 are no longer held flat: volume +5% a year (OEE improving), selling price +5%, material price +5%, salary per head +8% and fixed overheads +6% a year, with working capital growing with sales. Project free-cash-flow payback therefore shortens slightly to 2.0–2.8 years.
Definitions: DSCR = (PAT + depreciation + term-loan interest) ÷ (term-loan principal + term-loan interest). Coverage period = initial bank finance ÷ Year-1 cash accrual; it is not a loan-repayment date. Accepted board throughput = standard 8 × 4 ft input boards a day converted into accepted parts (27.2 saleable sq ft each at 85% yield). Material ₹200 is all-in per saleable sq ft (about ₹170 per raw sq ft). Land and building are assumed leased; rent is in overheads and premises are not in project cost.
Illustrative financial scenario, not a guaranteed return or bank-approved project report. Revised 26 October 2026: the machine package price equals each package’s displayed price, GST extra: ₹23 L, ₹38 L, ₹66.5 L, ₹1.135 Cr, ₹20 Cr and ₹40 Cr. For the 25–100 plans it covers four machines (the 50, 75 and 100 plans now include the NB536 automatic edge bander with pre-melt) on one 8-hour shift, and the total investment is recovered in about 2.8 / 2.5 / 2.6 / 2.8 years (25 / 50 / 75 / 100); the CNC router, dust collection, compressed air and voltage stabiliser are quoted separately (₹22.93 L, ₹28.10 L, ₹34.88 L and ₹70.00 L) and included in total equipment investment and project cost. The 500 and 1,000 plans include supporting equipment in the package price. The 500 and 1,000 boards/day columns are restated on accepted board throughput (earlier 600 and 1,200 boards/day). Their full 5-year scenario, debt schedule and balance sheet are in the
indicative project report (Excel). Interest coverage for all six plans is EBITDA ÷ total interest; the dashboard PDF and live Excel model below use the same basis. Current and quick ratios for all plans now exclude a double-counted loan instalment from the Year-1 balance sheet. Term-loan interest now uses the average Year-1 term-loan balance for all six plans (25–100: 3-year tenure; 500/1,000: 5-year tenure).
3-YEAR ROI BASIS
What does a 3-year ROI mean for each plan?
A 3-year ROI here means the total investment (machine package, supporting equipment quoted separately, other fixed assets and working capital, not just the machine price) is paid back from the project's own free cash flow within three years. In the illustrative base case every plan does this: about 2.8 / 2.5 / 2.6 / 2.8 years for 25 / 50 / 75 / 100 boards/day on one 8-hour shift, and 2.0 years for 500 and 1,000 boards/day on two shifts. It is a payback test, not a promise of a fixed yearly return.
| Plan (boards/day) | 25 | 50 | 75 | 100 | 500 | 1,000 |
| Operating basis | 1 shift | 1 shift | 1 shift | 1 shift | 2 shifts | 2 shifts |
| Total investment to recover (₹ Cr) | ₹1.14 | ₹2.03 | ₹3.06 | ₹4.56 | ₹40.19 | ₹80.38 |
| Project free cash flow, Year 1 (₹ Cr) | ₹0.39 | ₹0.76 | ₹1.15 | ₹1.55 | ₹19.26 | ₹38.52 |
| Project free cash flow, Year 2 (₹ Cr) | ₹0.39 | ₹0.78 | ₹1.17 | ₹1.58 | ₹20.07 | ₹40.15 |
| Project free cash flow, Year 3 (₹ Cr) | ₹0.44 | ₹0.88 | ₹1.32 | ₹1.78 | ₹22.29 | ₹44.57 |
| Recovered by end of Year 3 (₹ Cr) | ₹1.23 | ₹2.42 | ₹3.64 | ₹4.90 | ₹61.62 | ₹123.24 |
| Total investment recovered in (years) | 2.8 | 2.5 | 2.6 | 2.8 | 2.0 | 2.0 |
| Conservative case: Year-1 volume needed for 3-year recovery | 98% of plan | 92% of plan | 93% of plan | 98% of plan | 72% of plan | 72% of plan |
How it is calculated: free cash flow = operating profit (EBITDA less depreciation) after 30% tax, plus depreciation added back, less any increase in working capital. It is measured before loan interest and repayments, so it shows what the factory itself earns, however it is funded. The bank loan is a separate schedule (3 years for 25–100, 5 years for 500/1,000), tested with DSCR in the table above.
Assumptions: 300 working days a year at 60% OEE; 27.2 saleable sq ft per 8 × 4 ft board; selling price ₹300 and material ₹200 per saleable sq ft (GST excluded); salaries ₹40,000 per head per month; land and building leased; Years 2–5 grow volume +5%, price +5%, material +5%, salary per head +8% and fixed overheads +6% a year; income tax 30%.
Margin: the conservative row shows how far Year-1 volume can fall (with growth of 3% a year after that) before payback passes 3 years. The 25 and 100 plans have the least headroom, about 2%, so confirm your order book, prices and ramp-up in a factory feasibility study before you invest. Illustrative financial scenario, not a guaranteed return or bank-approved project report.
5-YEAR TRAJECTORY · BANK TEST AND OWNER FINANCIAL-HEALTH MEASURES
Does each plan stay bankable from Year 1 to Year 5?
Each cell shows base case / conservative 3-year-payback case. The conservative case keeps the same project cost, funding, prices, costs and headcount, but starts Year 1 at 98%, 92%, 93% and 98% of base volume for 25, 50, 75 and 100 boards/day and 72% for 500 and 1,000, then grows volume 3% a year, so project free-cash-flow payback is 3.0 years. Shaded cells are below the test level. Scroll sideways on mobile.
CIS-PPM-002 · 25 boards/day
| Base / conservative | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Result |
| BANK TEST |
| DSCR, loan years (≥ 1.50×) | 2.06 / 1.95 | 2.54 / 2.31 | 3.16 / 2.77 | repaid | repaid | Pass |
| Interest coverage, EBITDA ÷ interest (≥ 2.00×) | 5.97 / 5.68 | 8.33 / 7.60 | 12.25 / 10.75 | 16.28 / 13.76 | 18.36 / 14.97 | Pass |
| Current ratio (bank ≥ 1.33×; ideal 2.00×) | 1.26 / 1.24 | 1.54 / 1.49 | 2.22 / 2.10 | 2.81 / 2.63 | 3.42 / 3.17 | Watch: base Y1; cons. Y1; 2:1 from Y3 / Y3 |
| Total outside liabilities ÷ net worth (≤ 3.00×) | 1.61 / 1.64 | 0.93 / 0.98 | 0.58 / 0.62 | 0.45 / 0.49 | 0.37 / 0.40 | Pass |
| Bank debt ÷ net worth (≤ 2.00×) | 1.10 / 1.14 | 0.57 / 0.61 | 0.30 / 0.33 | 0.22 / 0.25 | 0.17 / 0.20 | Pass |
| Fixed-asset cover for term loan (≥ 1.33×) | 1.89 / 1.89 | 3.29 / 3.29 | repaid | repaid | repaid | Pass |
| OWNER FINANCIAL-HEALTH MEASURES |
| Quick ratio (≥ 1.00×; below 1 is serious) | 0.95 / 0.93 | 1.21 / 1.16 | 1.80 / 1.70 | 2.38 / 2.21 | 2.97 / 2.73 | Watch: base Y1; cons. Y1 |
| ROCE minus 12% interest, pp (> 0: debt earns more than it costs) | +24 / +23 | +24 / +22 | +24 / +21 | +20 / +17 | +18 / +15 | Pass |
| ROE on average equity (owner target 30–50%) | 55% / 52% | 42% / 39% | 35% / 32% | 29% / 27% | 26% / 23% | Watch: base Y4–5; cons. Y4–5 |
| Margin of safety, PBT ÷ contribution (≥ 25%) | 33% / 31% | 37% / 34% | 40% / 37% | 43% / 38% | 45% / 39% | Pass |
| Combined leverage, operating × financial (lower is safer) | 3.03 / 3.18 | 2.71 / 2.93 | 2.47 / 2.73 | 2.32 / 2.62 | 2.23 / 2.56 | Falling, safer |
| MARGINS AND CASH |
| EBITDA margin (≥ 12%) | 14% / 14% | 15% / 14% | 15% / 14% | 15% / 14% | 16% / 14% | Pass |
| PAT margin (≥ 5%) | 7% / 7% | 8% / 7% | 9% / 8% | 9% / 8% | 10% / 8% | Pass |
| Closing cash and bank, ₹ Cr (no dividends) | 0.33 / 0.32 | 0.54 / 0.50 | 0.81 / 0.72 | 1.28 / 1.12 | 1.81 / 1.56 | Rising |
CIS-PPM-003 · 50 boards/day
| Base / conservative | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Result |
| BANK TEST |
| DSCR, loan years (≥ 1.50×) | 2.58 / 2.15 | 3.19 / 2.55 | 4.00 / 3.06 | repaid | repaid | Pass |
| Interest coverage, EBITDA ÷ interest (≥ 2.00×) | 6.66 / 5.56 | 9.01 / 7.24 | 12.66 / 9.79 | 16.28 / 12.13 | 18.36 / 13.20 | Pass |
| Current ratio (bank ≥ 1.33×; ideal 2.00×) | 1.35 / 1.28 | 1.67 / 1.52 | 2.33 / 2.06 | 2.92 / 2.53 | 3.52 / 3.01 | Watch: cons. Y1; 2:1 from Y3 / Y3 |
| Total outside liabilities ÷ net worth (≤ 3.00×) | 1.56 / 1.70 | 0.91 / 1.03 | 0.58 / 0.67 | 0.45 / 0.53 | 0.36 / 0.44 | Pass |
| Bank debt ÷ net worth (≤ 2.00×) | 1.04 / 1.16 | 0.54 / 0.64 | 0.30 / 0.37 | 0.22 / 0.28 | 0.17 / 0.22 | Pass |
| Fixed-asset cover for term loan (≥ 1.33×) | 1.90 / 1.90 | 3.32 / 3.32 | repaid | repaid | repaid | Pass |
| OWNER FINANCIAL-HEALTH MEASURES |
| Quick ratio (≥ 1.00×; below 1 is serious) | 1.03 / 0.97 | 1.33 / 1.19 | 1.92 / 1.66 | 2.48 / 2.12 | 3.07 / 2.58 | Watch: cons. Y1 |
| ROCE minus 12% interest, pp (> 0: debt earns more than it costs) | +28 / +22 | +26 / +22 | +24 / +20 | +21 / +17 | +18 / +14 | Pass |
| ROE on average equity (owner target 30–50%) | 62% / 52% | 45% / 39% | 36% / 32% | 30% / 27% | 26% / 23% | Watch: base Y5; cons. Y4–5 |
| Margin of safety, PBT ÷ contribution (≥ 25%) | 35% / 30% | 39% / 32% | 42% / 34% | 44% / 36% | 46% / 37% | Pass |
| Combined leverage, operating × financial (lower is safer) | 2.83 / 3.35 | 2.58 / 3.10 | 2.39 / 2.91 | 2.27 / 2.79 | 2.18 / 2.73 | Falling, safer |
| MARGINS AND CASH |
| EBITDA margin (≥ 12%) | 14% / 13% | 15% / 13% | 15% / 13% | 15% / 13% | 16% / 13% | Pass |
| PAT margin (≥ 5%) | 7% / 6% | 8% / 7% | 9% / 7% | 9% / 8% | 10% / 8% | Pass |
| Closing cash and bank, ₹ Cr (no dividends) | 0.73 / 0.66 | 1.20 / 0.99 | 1.79 / 1.39 | 2.72 / 2.08 | 3.77 / 2.82 | Rising |
CIS-PPM-004 · 75 boards/day
| Base / conservative | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Result |
| BANK TEST |
| DSCR, loan years (≥ 1.50×) | 2.54 / 2.13 | 3.14 / 2.53 | 3.94 / 3.04 | repaid | repaid | Pass |
| Interest coverage, EBITDA ÷ interest (≥ 2.00×) | 6.62 / 5.58 | 8.97 / 7.27 | 12.64 / 9.86 | 16.28 / 12.23 | 18.36 / 13.31 | Pass |
| Current ratio (bank ≥ 1.33×; ideal 2.00×) | 1.34 / 1.28 | 1.66 / 1.52 | 2.32 / 2.06 | 2.91 / 2.54 | 3.51 / 3.02 | Watch: cons. Y1; 2:1 from Y3 / Y3 |
| Total outside liabilities ÷ net worth (≤ 3.00×) | 1.56 / 1.69 | 0.91 / 1.03 | 0.58 / 0.67 | 0.45 / 0.53 | 0.36 / 0.44 | Pass |
| Bank debt ÷ net worth (≤ 2.00×) | 1.04 / 1.16 | 0.54 / 0.64 | 0.30 / 0.36 | 0.22 / 0.28 | 0.17 / 0.22 | Pass |
| Fixed-asset cover for term loan (≥ 1.33×) | 1.91 / 1.91 | 3.33 / 3.33 | repaid | repaid | repaid | Pass |
| OWNER FINANCIAL-HEALTH MEASURES |
| Quick ratio (≥ 1.00×; below 1 is serious) | 1.02 / 0.97 | 1.32 / 1.19 | 1.91 / 1.66 | 2.48 / 2.12 | 3.06 / 2.59 | Watch: cons. Y1 |
| ROCE minus 12% interest, pp (> 0: debt earns more than it costs) | +28 / +23 | +26 / +22 | +24 / +20 | +21 / +17 | +18 / +14 | Pass |
| ROE on average equity (owner target 30–50%) | 62% / 52% | 44% / 39% | 36% / 32% | 30% / 27% | 26% / 23% | Watch: base Y5; cons. Y4–5 |
| Margin of safety, PBT ÷ contribution (≥ 25%) | 35% / 30% | 39% / 32% | 42% / 35% | 44% / 36% | 46% / 37% | Pass |
| Combined leverage, operating × financial (lower is safer) | 2.84 / 3.32 | 2.59 / 3.08 | 2.39 / 2.89 | 2.27 / 2.77 | 2.18 / 2.71 | Falling, safer |
| MARGINS AND CASH |
| EBITDA margin (≥ 12%) | 14% / 13% | 15% / 13% | 15% / 13% | 15% / 13% | 16% / 13% | Pass |
| PAT margin (≥ 5%) | 7% / 6% | 8% / 7% | 9% / 7% | 9% / 8% | 10% / 8% | Pass |
| Closing cash and bank, ₹ Cr (no dividends) | 1.09 / 0.99 | 1.79 / 1.49 | 2.67 / 2.10 | 4.06 / 3.13 | 5.64 / 4.26 | Rising |
CIS-PPM-005 · 100 boards/day
| Base / conservative | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Result |
| BANK TEST |
| DSCR, loan years (≥ 1.50×) | 2.06 / 1.96 | 2.53 / 2.31 | 3.16 / 2.77 | repaid | repaid | Pass |
| Interest coverage, EBITDA ÷ interest (≥ 2.00×) | 5.98 / 5.69 | 8.33 / 7.62 | 12.25 / 10.77 | 16.28 / 13.79 | 18.36 / 14.99 | Pass |
| Current ratio (bank ≥ 1.33×; ideal 2.00×) | 1.26 / 1.24 | 1.54 / 1.49 | 2.21 / 2.10 | 2.81 / 2.63 | 3.42 / 3.17 | Watch: base Y1; cons. Y1; 2:1 from Y3 / Y3 |
| Total outside liabilities ÷ net worth (≤ 3.00×) | 1.60 / 1.64 | 0.93 / 0.97 | 0.58 / 0.61 | 0.45 / 0.49 | 0.37 / 0.40 | Pass |
| Bank debt ÷ net worth (≤ 2.00×) | 1.10 / 1.13 | 0.57 / 0.60 | 0.30 / 0.32 | 0.22 / 0.25 | 0.17 / 0.20 | Pass |
| Fixed-asset cover for term loan (≥ 1.33×) | 1.90 / 1.90 | 3.32 / 3.32 | repaid | repaid | repaid | Pass |
| OWNER FINANCIAL-HEALTH MEASURES |
| Quick ratio (≥ 1.00×; below 1 is serious) | 0.95 / 0.93 | 1.21 / 1.16 | 1.80 / 1.70 | 2.38 / 2.21 | 2.97 / 2.73 | Watch: base Y1; cons. Y1 |
| ROCE minus 12% interest, pp (> 0: debt earns more than it costs) | +24 / +23 | +24 / +22 | +24 / +21 | +20 / +17 | +18 / +15 | Pass |
| ROE on average equity (owner target 30–50%) | 55% / 52% | 42% / 39% | 35% / 32% | 29% / 27% | 26% / 23% | Watch: base Y4–5; cons. Y4–5 |
| Margin of safety, PBT ÷ contribution (≥ 25%) | 33% / 32% | 37% / 34% | 41% / 37% | 43% / 38% | 45% / 39% | Pass |
| Combined leverage, operating × financial (lower is safer) | 3.01 / 3.16 | 2.69 / 2.91 | 2.46 / 2.72 | 2.32 / 2.60 | 2.22 / 2.55 | Falling, safer |
| MARGINS AND CASH |
| EBITDA margin (≥ 12%) | 14% / 14% | 15% / 14% | 15% / 14% | 15% / 14% | 16% / 14% | Pass |
| PAT margin (≥ 5%) | 7% / 7% | 8% / 7% | 9% / 8% | 9% / 8% | 10% / 8% | Pass |
| Closing cash and bank, ₹ Cr (no dividends) | 1.33 / 1.29 | 2.16 / 2.01 | 3.23 / 2.90 | 5.10 / 4.49 | 7.22 / 6.23 | Rising |
CIS-PPM-006 / CIS-PPM-007 · 500 and 1,000 boards/day (identical ratios; cash shown for 500, double for 1,000)
| Base / conservative | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Result |
| BANK TEST |
| DSCR, loan years (≥ 1.50×) | 3.61 / 2.19 | 4.32 / 2.55 | 5.22 / 2.99 | 6.37 / 3.54 | 7.86 / 4.24 | Pass |
| Interest coverage, EBITDA ÷ interest (≥ 2.00×) | 8.29 / 4.96 | 10.61 / 6.19 | 13.87 / 7.88 | 18.68 / 10.34 | 26.30 / 14.20 | Pass |
| Current ratio (bank ≥ 1.33×; ideal 2.00×) | 1.61 / 1.35 | 2.21 / 1.67 | 2.86 / 2.04 | 3.54 / 2.43 | 4.82 / 3.33 | Pass; 2:1 from Y2 / Y3 |
| Total outside liabilities ÷ net worth (≤ 3.00×) | 1.32 / 1.70 | 0.76 / 1.08 | 0.49 / 0.73 | 0.33 / 0.50 | 0.24 / 0.36 | Pass |
| Bank debt ÷ net worth (≤ 2.00×) | 0.94 / 1.31 | 0.50 / 0.79 | 0.29 / 0.49 | 0.17 / 0.31 | 0.10 / 0.19 | Pass |
| Fixed-asset cover for term loan (≥ 1.33×) | 1.58 / 1.58 | 1.83 / 1.83 | 2.32 / 2.32 | 3.82 / 3.82 | repaid | Pass |
| OWNER FINANCIAL-HEALTH MEASURES |
| Quick ratio (≥ 1.00×; below 1 is serious) | 1.29 / 1.07 | 1.87 / 1.38 | 2.50 / 1.73 | 3.17 / 2.12 | 4.38 / 2.94 | Pass |
| ROCE minus 12% interest, pp (> 0: debt earns more than it costs) | +34 / +18 | +29 / +18 | +25 / +17 | +22 / +16 | +19 / +15 | Pass |
| ROE on average equity (owner target 30–50%) | 74% / 44% | 48% / 35% | 37% / 30% | 30% / 26% | 26% / 23% | Watch: base Y5; cons. Y4–5 |
| Margin of safety, PBT ÷ contribution (≥ 25%) | 53% / 35% | 56% / 38% | 59% / 41% | 62% / 44% | 64% / 46% | Pass |
| Combined leverage, operating × financial (lower is safer) | 1.89 / 2.85 | 1.78 / 2.61 | 1.70 / 2.43 | 1.63 / 2.29 | 1.57 / 2.17 | Falling, safer |
| MARGINS AND CASH |
| EBITDA margin (≥ 12%) | 21% / 18% | 22% / 18% | 22% / 18% | 22% / 18% | 22% / 18% | Pass |
| PAT margin (≥ 5%) | 12% / 8% | 12% / 8% | 13% / 9% | 13% / 10% | 14% / 10% | Pass |
| Closing cash and bank, ₹ Cr (no dividends) | 16.6 / 12.5 | 31.4 / 19.2 | 48.6 / 27.2 | 68.6 / 36.4 | 91.6 / 47.1 | Rising |
What the trajectory shows. Every plan passes the bank test on DSCR, interest coverage, outside liabilities, bank debt and fixed-asset cover in all five years, in both cases. The only Year-1 gaps are liquidity in the conservative case for 25–100 boards/day: current ratio 1.24–1.28× (test 1.33×); quick ratio 0.93× for 25, 0.97× for 50, 0.97× for 75, 0.93× for 100 boards/day (test 1.00×); all clear from Year 2. The ideal 2:1 current ratio is reached in Year 3 in both cases (Year 2 for 500/1,000 in the base case). Return on average equity stays at or above the 30% owner benchmark through Year 4 (base) and Year 3 (conservative), then eases to 23–26% by Year 5 only because all profit is retained as cash; paying dividends or reinvesting the surplus lifts it again. Remedy for the Year-1 liquidity gap: a slightly larger cash buffer or working-capital limit at start-up, agreed with your lender.
Definitions. Current ratio counts the next 12 months of term-loan principal as a current liability. Total outside liabilities = term loan + cash credit + creditors. Fixed-asset cover = net fixed assets ÷ term loan outstanding. Margin of safety = PBT ÷ contribution, where contribution = revenue − material − variable half of overheads. Combined leverage = contribution ÷ PBT. Test levels are illustrative screening levels, not bank sanction terms or a guaranteed return.
