(b) Rental deposits.

Methodology for computation of estimated costs:

The size of our stores varies across regions and is dependent on various factors such as availability of suitable
locations, addressable market, lease rentals etc. Our Company proposes to open 120 new EBOs across pan India
as considered necessary and appropriate by our management with an estimated aggregate built up area of 500 sq.
ft. per store (“Average Size”). The premises for the proposed new EBOs are expected to be taken on leasehold
basis in line with the Company’s business practices. Our estimate of costs mentioned above are based on (i)
quotations received from our empanelled contractors or from vendors from whom our Company has purchased
similar items for our stores in the past, current quotations, industry standards, prevailing market rates, rate
contracts and historical costs; (ii) average areas for EBOs and (iii) our internal estimates for specifications and
item requirements based on our prior experience of setting-up EBOs.

The table below sets forth the total estimated costs for setting-up of 120 new EBOs of Average Size:

 

Particulars Estimated Amount (in = million)
Capital expenditure 217.34
Rental deposits 120.00
Total estimated costs 337.34

 

The table below sets forth the total estimated costs for one store of Average Size:

 

Particulars Estimated Amount (in % million)
Capital expenditure 1.81
Rental deposits 1.00
Total estimated costs 2.81

 

The detailed break-up of these estimated costs on a unit basis is as below:
(a) Capital expenditure:
The capital expenditure would include, inter alia, the costs in relation to the fit-outs, information technology

and utility cost, which is certified by Anuradha Desikan, founder architect of ADVA Architects & Consultants
(membership no. CA/2005/35797). The table below sets forth the basis of our estimation for the capital

 

 

expenditure.
Particulars Estimated Amount (in = million)
Fit-outs 1.60
Information technology 0.06
Utilities 0.15
Total estimated costs per unit store 1.81
ji) The fit-outs for our stores primarily include interior work (which includes, among others, civil work,

paint work, ceiling and partition work, furniture and display, glass work, electrical work) and services
work (which includes, among others, installation of pipe and ducts, smoke detectors, fire alarms and
rolling shutters). Based on the Architect Certificate, the estimated costs of various items are set out
below for one proposed store of an Average Size.

 

 

 

 

 

 

 

 

 

 

 

 

S.No ITEM DESCRIPTION Unit Qty RATE | AMOUNT (in)
Interior work
A | Civil Works
1 | P/F of Kajaria brand tiles with laying charges SQFT 495 140 69,300.00
PCC work 3" Depth SQFT 495 55 27,225.00
B Paint Work

 

94

 
