You are a finance consultant who specializes in planning, analytics and management

accounting for startups and growing businesses. A new company, Sweet & Sour Pvt. Ltd.,

approaches you to prepare a three-statement, five-year financial projection for their startup.

Using the following facts, please draw up financials (P&L, Balance sheet, Cash flow statement) in Excel,

showing detailed working sheets to support your underlying calculations and documenting your

assumptions in detail.

Sweet & Sour Pvt. Ltd. is a startup that has been setup to manufacture jams and pickles.

It has been three months since the company was setup (incorporation date 1 April 2019) with 2 founders

holding shares as below –

Par value of shares ₹ 10 each

 Founder A – Gourmet chef – 100000 shares

 Founder B – Marketing expert & previously CEO of a hotel chain – 50000 shares

The company has projected domestic sales as below (in number of jars)–

Estimated selling

price at launch

2019

2020

2021

2022

2023

Jam1

₹ 200 per jar

10000

15000

20000

80000

200000

Jam2

₹ 200 per jar

10000

15000

20000

25000

60000

Jam3

₹ 500 per jar

5000

15000

20000

25000

60000

Pickle1

₹ 200 per jar

10000

15000

20000

80000

200000

Pickle2

₹ 500 per jar

10000

15000

20000

25000

60000

Pickle3

₹ 900 per jar

1000

1000

2000

4000

10000

In addition, they project export sales as below (in number of jars)–

Estimated selling

price at launch (US$) 2019

2020

2021

2022

2023

Jam1

$ 5 per jar

1000

1500

2000

8000

20000

Jam2

$ 5 per jar

1000

1500

2000

2500

6000Jam3

$ 10 per jar

500

1500

2000

2500

6000

Pickle1

$ 5 per jar

2000

8000

20000

Pickle2

$ 10 per jar

2000

5000

10000

Pickle3

$ 15 per jar

2000

4000

10000

The cost of production of each jar is as below –

 Jams – Total RM cost 25% of selling price, labour & direct costs 10%

 Pickles - Total RM cost 20% of selling price, labour & direct costs 10%

Packaging & delivery costs –

 Domestic sales – 5% of selling price

 Export sales – 7% of selling price

Common costs -

 Factory costs 20% of total company revenue

 General overheads 15% of total revenue

Value of total fixed assets –

 Plant & machinery – ₹ 500000

 Office equipment – ₹ 80000

 Furniture & fixtures – ₹ 40000

The factory is leased at ₹ 60000 rent per month.

Additonal notes –

1. The business would like to track profitability of Jams as a segment separately from the pickles

division.

2. For 2019-20 & 2020-21, provide monthly P&L and cash flow, and annual columns starting year 3

3. Use the indicative format in the Excel workbook provided

4. Break up the cost components shown on the P&L into logical sub-categories such as Factory costs,

Power & Water, Rent, Professional Fees, Management Costs, IT & Communications, Support &

Admin, Other overheads, Finance costs, Depreciation, etc (Stated categories are indicative only;

use your understanding of business dynamics and the industry to split costs into these categories).

State logical assumptions for the basis assumed for these costs.