Kaya Spirits - Best Distillers 2018 Kaya Spirits Annual Information Memorandum 2019 | Page 17

Fund Requirement Programme
S. NO. PURPOSE OF FUNDS
Time-Wise Funds Plan For Year Ahead
AMOUNT ( RS IN CRORES )
1 Short-Term Working Capital Requirement 17.00
2 Long-Term Working Capital Requirement 3.65
3
Setting Up of Bottling Plant
TOTAL
ii)
Equity Share Capital
For Immediate Requirement For Next 3-6 Months For Last 6 Months
1 Requirement 5.00 13.00 7.65
2 Time-frame For Raising Till April May - September October - December
3 Mode Equity Equity Quasi-Equity
4 ROI 20% + Capital Appreciation 20% + Capital
Appreciation 20% + Capital Appreciation
5 Tenure 3-4 Years 3-4 Years 5 Years
6 Exit Options i) IPO i) IPO i) IPO
ii) Stake Sale ii) Stake Sale ii) Stake Sale
iii) Buy-Back by Promooter iii) Buy-Back by
Promooter iii) Buy-Back by Promooter
iv) Buy-Back Company iv) Buy-Back Company iv) Buy-Back Company
5.00
25.65
Means Of Finance
i)
S. No. PARTICULARS
18.00
Quasi-Equity/Quasi-Debt ( Issue of Optionally Convertible Preferrence Shares ) 7.65 v) Buy-Back by Strategic
Investor v) Buy-Back by Strategic v) Buy-Back by Strategic
Investor
Investor
TOTAL 25.65 vi) Other Options vi) Other Options
The projected Sales Volume in the year ahead is of 5,48,000 cases. To support the Sales Projection financially, the following
table enlists the Funds Requirement and also mentions the purpose and usage of the funds.
The Short-Term Working Capital will be used to do the Advance Excise Tax payment of the stocks in the different markets that
will be invested in the market for the rotation of the Market Credit Cycle.
The Long-Term Working Capital will smoothen out the business operations and increase the capacity of the business to meet
up the increase in the sales volumes.
To create the assets of the company and decrease the Cost of Production as the sales increases, KBDL plans to set up their
own Bottling Plant. Setting up of the Bottling Plant will result in increase in the production capacity and more profitability for
the company and its stakeholders.
The funds will be raised primarily through Equity Share Capital, Quasi-Equity and Quasi-Debt. Out of the projected funds
requirement of INR 25.65 CR, INR 18.00 CR will be raised through Equity and the remaining INR 7.65 CR will be raised through
Quasi-Equity/Quasi-Debt.
vi) Other Options
The vital element of fund raising is that the company should know the exact requirement of the funds and the time at which
it requires those funds. Unplanned infusion of funds only adds to the liabilities of the company and result in the greater risk
to the investors as well.
Thus, at KBDL we have planned specific requirement of funds, their utilisation, the expected ROI to the company and to the
investors as well, the Lock-In Time Period and the Exit Options that will be available to the investors.
The below table gives a brief overview about the Timeliness of the Fund Requirement and the quantum of funds required at
each stage of funding.
In the year ahead, we will have three stages of funding.
In the first stage, the Urgent Requirement for Immediate Working Capital is of INR 5 CR. This Working Capital will be used for
the initial Product Placement and the Completion of the Initial Sale Cycle in the 13 states in India.
In the second stage, the fund requirement for the company is of INR 13 CR which will be used at increasing the monthly
volumes in each state. With increase in monthly volume, our Marketing Campaigns of BTL Activities and Events will kick in
and also to support the increasing sales, more Short-Term Working Capital is required for Excise Payments and Market
Credit.
In the third stage, the fund requirement for the company is of INR 7.65 CR. The major part of this funding will be used in
setting up the Bottling Plant of KBDL and some part of this round of funding will be used to maintain the Long-Term Working
Capital of the company to support the next round of expansion in the fiscal years ahead.
32 Kaya Blenders & Distillers Limited
Annual Information Memorandum 2018-19
33