AUDIT RESPONSE DOCUMENT

Audit Investor Summary

Independent financial audit conducted by an independent audit firm (early Q2 2026) to stress-test TUA's financial model, COGS structure, and capital assumptions. This page presents the current diligence-standard view for investors.

Review Areas

31.5%

Y3 GM I

23.5%

Y3 Contribution Margin

Investor Diligence Summary

This page provides a concise view of the financial and operating standards currently used across the TUA investor portal.

Scope Reviewed

5-year financial model (P&L, COGS, OPEX, cash flow)
Unit economics and margin architecture (GM I and Contribution Margin)
Cost classification standards (Ind AS 115)
Seed instrument structure and milestone gating
Logistics model and per-student cost assumptions
School revenue share — 8% economics with 4% + 4% aggregator split settlement (Executive §6)
Working-capital and bank-guarantee readiness for school contracts

Current Diligence Position

No revenue inflation, fabricated metrics, or governance red flags were identified.

Factory-gate and post-incentive margins are reported separately
B2B palletized logistics assumptions are explicitly modeled
Seed structure is milestone-gated with tiered post-money caps
Bank guarantee collateral is included in capital planning

Current Financial & Operating Standards

Core assumptions and reporting standards used for investor evaluation.

Unit Economics Framework (Y3)

Platform ARPS	₹12,000 per student
COGS	₹8,220 per student
Gross Margin I	31.5% (factory-gate)
Selling & School Incentive Fee	Reported below GM I
Contribution Margin	23.5% (post-incentive, Y3)
Net Profit per Student	~₹900

See Executive Report §6 for complete P&L and cost decomposition.

Supply Chain & Contract Readiness

Logistics Model	B2B palletized 3PL delivery
Delivery Cost	₹140/student (line-haul)
Warehouse Sorting	₹300/student
School Distribution Labour	₹10/student
School incentive settlement	8% total; 4% ≤3 BD post parent clear; 4% ≤7 BD post Successful Delivery (aggregator split)
BG Facility Planning	₹5 Cr facility via FD-backed collateral
BG Allocation in Seed	8% of total raise

See Seed Use of Funds and Bootstrap plan.

Capital Structure Snapshot

Instrument	Structure	Investor Protection Logic
Pre-Seed SAFE	Pre-Seed SAFE: $60,000 at a $2M post-money cap with a 20% discount	Earliest entry pricing for pilot-stage risk; budget cap per §8.3
Seed Tranche A	Seed SAFE (tiered): Tranche A $2–3M at a $25M post-money cap	Funds pilot validation and operating readiness
Seed Tranche B	Seed SAFE (tiered): Tranche B $15–17M at a $40M-$50M post-money cap (milestone-gated)	Unlocks only after milestone proof (schools + margin + active users)
Alternative Instrument	12% Coupon CCD option	For investors preferring interim cash-yield profile

Detailed terms: Seed SAFE Terms and Capital Rounds.

Cross-Reference to Portal Documents

Core Documents

Executive Report	§5.2 Unit Economics, §6.3 COGS, §6 Revenue share & auto-split, §6.9 Investor Diligence Summary
Seed Deck	SAFE Terms (tiered), Use of Funds (BG line), Capitalization Roadmap
VC Q&A	Cost structure, unit economics, and investor diligence responses
Capital Rounds	Valuation visual, Seed cards (tiered), Cap table, Dilution waterfall
Bootstrap	Phase 3 budget (BG setup, B2B freight), Operations SOP (3PL)

Supporting Documents

Bootstrap Plan	Pilot execution sequence and early validation plan
Presenter Guide	Speaking framework aligned to current model assumptions