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Fax: (091) 286908
helpdesk-pew@smeda.org.pk
May 2005
Pre-Feasibility Study
1
2
3
INTRODUCTION TO SMEDA................................................................................. 2
Purpose of the document............................................................................................ 2
Crucial Factors & Steps in decision making for investment........................................ 3
3.1
Key Success Factors........................................................................................... 3
3.2
Opportunities ..................................................................................................... 3
3.3
Threats ............................................................................................................... 3
Project Profile............................................................................................................ 3
4.1
Opportunity Rationale ........................................................................................ 3
4.2
Project Brief....................................................................................................... 3
4.3
Introduction to CNG .......................................................................................... 4
4.4
Proposed Business Legal Status ......................................................................... 4
4.5
Project Cost........................................................................................................ 4
4.6
Viable Economic Size ........................................................................................ 5
4.7
Proposed Capacity.............................................................................................. 5
4.8
Proposed Location.............................................................................................. 5
4.9
CNG Policy........................................................................................................ 5
4.10 CNG Consultancy Services ................................................................................ 6
Market Analysis......................................................................................................... 6
5.1
Target Customers ............................................................................................... 6
5.2
Market Demand ................................................................................................. 6
5.3
Market Supply ................................................................................................... 6
5.4
Industry Growth................................................................................................. 6
REGULATIONS, Licenses and incentives................................................................. 7
6.1
License............................................................................................................... 7
6.2
Certificate (by HDIP) ......................................................................................... 7
6.3
NOCs................................................................................................................. 7
6.4
Incentives........................................................................................................... 8
6.4.1
Sales Tax.................................................................................................... 8
6.4.2
Custom Duty .............................................................................................. 8
6.5
Regulatory Requirements ................................................................................... 8
6.5.1
Quality Certificate ...................................................................................... 8
6.5.2
List of Equipment....................................................................................... 8
6.5.3
Income Tax on the Import of CNG Equipment ........................................... 8
6.6
Income Tax ........................................................................................................ 8
The Project CONCEPT.............................................................................................. 9
7.1
Project Cost........................................................................................................ 9
7.2
Project Financing ............................................................................................... 9
7.3
Project Details.................................................................................................... 9
7.3.1
Location ..................................................................................................... 9
7.3.2
Land........................................................................................................... 9
7.3.3
Building ................................................................................................... 10
7.3.4
Material Inputs ......................................................................................... 11
7.3.5
CNG Equipment....................................................................................... 11
7.3.6
Suppliers .................................................................................................. 12
7.3.7
Stores & Spares ........................................................................................ 13
7.3.8
Furniture and Fixtures .............................................................................. 13
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PREF-34/May, 2005/Rev 2
Pre-Feasibility Study
7.3.9
Office Equipment ..................................................................................... 13
7.4
Manpower Requirement ................................................................................... 13
8
Basis for Financial Projections................................................................................. 14
8.1
Inflation Rate ................................................................................................... 14
8.2
Revenue Assumptions ...................................................................................... 14
8.2.1
No. of Cars ............................................................................................... 14
8.2.2
Gas per Vehicle ........................................................................................ 14
8.3
Depreciation on Assets..................................................................................... 15
8.3.1
Accounting Profit ..................................................................................... 15
8.3.2
Taxable Profit........................................................................................... 15
8.4
First Year Allowance ....................................................................................... 15
8.5
Multiple Shift Allowance ................................................................................. 15
8.6
Amortization of Preliminary Expenses ............................................................. 16
8.7
Working Capital............................................................................................... 16
8.7.1
Accounts Receivables............................................................................... 16
8.7.2
Advances to Employees............................................................................ 16
8.7.3
Accrued Utilities and Power Expenses .................................................. 16
8.7.4
Accounts Payable ..................................................................................... 16
8.7.5
Sales Tax Payable..................................................................................... 16
8.8
Sales Tax ......................................................................................................... 16
8.9
Ratio/Financial Analysis .................................................................................. 16
8.10 Alternative Investment Opportunity ................................................................. 17
9
Financial Analysis ................................................................................................... 18
9.1
Project Costs .................................................................................................... 18
9.2
Projected Income Statement ............................................................................. 19
9.3
Projected Balance Sheet ................................................................................... 20
9.4
Projected Cash Flow Statement ........................................................................ 21
9.5
Revenues.......................................................................................................... 22
9.6
Cost of Sales .................................................................................................... 23
9.7
Working Capital............................................................................................... 24
9.8
Ratio Analysis.................................................................................................. 25
10
Requirement for the License ................................................................................ 26
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PREF-34/May, 2005/Rev 2
Pre-Feasibility Study
DISCLAIMER
The purpose and scope of this information memorandum is to introduce the subject
matter and provide a general idea and information on the said area. All the material
included in this document is based on data/information gathered from various sources
and is based on certain assumptions. Although, due care and diligence has been taken to
compile this document, the contained information may vary due to any change in any of
the concerned factors, and the actual results may differ substantially from the presented
information. SMEDA does not assume any liability for any financial or other loss
resulting from this memorandum in consequence of undertaking this activity. The
prospective user of this memorandum is encouraged to carry out additional diligence
and gather any information he/she feels necessary for making an informed decision.
For more information on services offered by SMEDA, please contact our website:
www.smeda.org.pk
DOCUMENT CONTROL
Document No.
PREF-34
Revision
Prepared by
SMEDA-Punjab
Issue Date
May, 2002
Revised on
May, 2005
Issued by
Library Officer
1
PREF-34/May, 2005/Rev 2
Pre-Feasibility Study
INTRODUCTION TO SMEDA
The Small and Medium Enterprise Development Authority (SMEDA) was established with
the objective to provide fresh impetus to the economy through the launch of an aggressive
SME support program.
Since its inception in October 1998, SMEDA had adopted a sectoral SME development
approach. A few priority sectors were selected on the criterion of SME presence. In depth
research was conducted and comprehensive development plans were formulated after
identification of impediments and retardants. The all-encompassing sectoral development
strategy involved recommending changes in the regulatory environment by taking into
consideration other important aspects including finance, marketing, technology and human
resource development.
SMEDA has so far successfully formulated strategies for sectors including, fruits and
vegetables, marble and granite, gems and jewelry, marine fisheries, leather and footwear,
textiles, surgical instruments, transport and dairy. Whereas the task of SME development at
a broader scale still requires more coverage and enhanced reach in terms of SMEDAs
areas of operation.
Along with the sectoral focus a broad spectrum of business development services is also
offered to the SMEs by SMEDA. These services include identification of viable business
opportunities for potential SME investors. In order to facilitate these investors, SMEDA
provides business guidance through its help desk services as well as development of project
specific documents. These documents consist of information required to make wellresearched investment decisions. Pre-feasibility studies and business plan development are
some of the services provided to enhance the capacity of individual SMEs to exploit viable
business opportunities in a better way.
This document is in the continuation of this effort to enable potential investors to make
well-informed investment decisions.
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Pre-Feasibility Study
PROJECT PROFILE
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Project Investment
Fixed Investment
Working Capital
Total Investment
Rs. 30,750,140
Rs. 377,390
Rs. 31,127,530
The proposed pre-feasibility is based on the assumption of 50% debt and 50% equity.
However this composition of debt and equity can be changed as per the requirement of the
investor.
The project seems to be viable with the following returns on investment.
Source: International Association of Natural Gas Vehicles (IANGV) Feb, 2005 Statistics
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PREF-34/May, 2005/Rev 2
Pre-Feasibility Study
Table 4-2
Project Returns
23.1%
45.1%
Rs. 3,401,246
4 years
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PREF-34/May, 2005/Rev 2
Pre-Feasibility Study
This has provided a boost to the industry, and so far, more than 600,000 vehicles have been
converted to CNG and 6702 CNG stations are operational. According to International
Association for Natural Gas Vehicles (IANGV) statistics, Pakistan is ranked third in the
CNG-using countries after Argentina and Brazil.
4.10 CNG Consultancy Services
HDIP is also offering consultancy services to the investors, which include the whole range
of activities like formation of company, selection of site, legal formalities, design of
station, specifications of the equipment, selection of equipment, selecting and appointing
the contractor, training of manpower, commissioning and supervision, etc.
MARKET ANALYSIS
As on Feb, 2005
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PREF-34/May, 2005/Rev 2
Pre-Feasibility Study
and 220 stations respectively and by the year 2005 they have tremendously grown up to
670 CNG Stations and 600,000 CNG fitted vehicles. The growth in terms of percentage is
given in the following table:
Table 5-1 Growth Percentage of Vehicles
Year
2004
2005
Percentage Increase
No. Of Vehicles on CNG
450,000
600,000
33%
CNG Filling Stations
550
670
22%
The above growth rates present an opportunity for the new entrants to earn profits by
setting up new CNG filling stations to meet the growing demand.
6.1 License
Obtaining a license from Ministry of Petroleum and Natural Resources is a pre-requisite for
setting-up the CNG station. The cost associated with this license is Rs.25,000.
6.2 Certificate (by HDIP)
After the installation of the required equipment for CNG filling station, HDIP will inspect
the working of the equipment, and once satisfied, will issue a certificate verifying that the
installed equipment is up to the required standards. The cost associated with this
certification is Rs. 35,000.
6.3 NOCs
No Objection Certificate will be required from the following departments prior to the
commencement of the business:
Concerned development authority of the city (Lahore Development Authority in case of
Lahore)
Traffic Engineering and Planning Authority (TEPA)
Traffic Police (SSP)
Department of Civil Defense
National Highway Authority (NHA)
Central Board of Revenue (CBR)
Civil Administration-Tehsil Municipal Administration (TMA)
Irrigation Department
Forest Department
Explosives Department
The cost associated for obtaining the above NOCs is estimated at Rs.100,000.
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PREF-34/May, 2005/Rev 2
Pre-Feasibility Study
6.4 Incentives
6.4.1 Sales Tax
The import of CNG equipment is exempted from sales tax vide SRO No.38 (1)/98 dated
21st January 1998 till June, 2005.
6.4.2 Custom Duty
The CNG equipment is also exempted from the custom duties as per the above-referred
SRO.
6.5 Regulatory Requirements
6.5.1 Quality Certificate
SRO.38 (1)/98 dated 21st January 1998 has been amended on April 11, 2002 and the
Quality Certificate from original manufacturer has been made mandatory. This certificate
should state that the equipment meets the safety standard as laid down in Pakistan CNG
Rules 1992. The designated third party inspector witnesses this Quality Certificate. The
cost of third party inspection is $500.
6.5.2 List of Equipment
The list of equipment and their various manufacturers has also been mentioned in the same
amended SRO whose import is exempted from custom duty and sales tax.
6.5.3 Income Tax on the Import of CNG Equipment
Income Tax, at the rate of 6%, is payable by the importer on the import of CNG equipment.
6.6 Income Tax
The income of the CNG filling station is not exempted from the income tax. The investor
has to pay tax on his/her income according to the nature of the business entity. The current
project is being operated as a private limited company, so the income tax is payable at the
rate of 45%.
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PREF-34/May, 2005/Rev 2
Pre-Feasibility Study
Project Costs
Item
Land (9,000 Sq. ft)
Building Civil Works
CNG Equipment
Stores & Spares
Office Equipment
Furniture & Fixtures
Gas Security
Preliminary Expenses
Working Capital
Total
Rupees
17,000,000
1,700,000
8,732,100
513,040
100,000
85,000
1,800,000
820,000
377,390
31,127,530
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PREF-34/May, 2005/Rev 2
Pre-Feasibility Study
In this report, prices of commercial land for Lahore city has been considered, however,
prices may considerably vary in the other cities like Quetta, Karachi, Hyderabad, Multan,
Faisalabad, Islamabad, Peshawar etc.
7. 3. 3 B ui l di ng
There are certain civil works required to be carried out at the proposed location. The civil
works would be carried out on an area of 2250 square feet. The rest of the area will be
floored with tuff tiles. Civil work includes the following:
Office
Control Room
Compressor and Cascade/Cylinder Storage Room
Shed for Dispenser
Toilet/washroom
Underground Gas Piping and Power Cables
Flooring
The total cost of construction is estimated at Rs.1.7 million. Details for the said cost are as
follows:
Table 7-3
Description
Cost per Sq. ft.
Cost
Office, control room, compressor and cylinder storage
500
1,125,000
room, shed and toilet/washroom (2,250 sq.ft)
Underground gas piping
200,000
Flooring (6,750sq.ft)
45
303,750
Contingencies
71,250
1,700,000
Total Cost
Explosives department has laid down certain specifications for the compressor and
cascade/cylinders storage room, which are as follows:
1. Minimum one meter distance is required between walls and compressor.
2. Minimum distance of one meter should be kept between compressor and
cascade/cylinders.
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PREF-34/May, 2005/Rev 2
Pre-Feasibility Study
3. Fire rated walls3 must be used in the compressor and cylinder storage room.
4. Roof of the compressor and storage room should not be of permanent nature4.
7.3.4 Material Inputs
There are two main inputs required for the CNG filling station, one is the natural gas and
the other is electricity. The sponsor of the project is required to obtain both the connections
from the relevant authorities i.e. WAPDA and Sui Northern Gas Pipelines Limited
(SNGPL) or Sui Southern Gas Pipelines Limited (SSGPL). The cost associated with
obtaining the gas connection is Rs.75, 000/-. In addition to this, a minimum security
deposit of Rs.1.8million is also required to be deposited with the concerned authority.
Bank guarantee is also acceptable in case of gas security. An amount of Rs.0.35 million is
required for obtaining electricity connection. There is no security deposit required for the
electricity connection.
7.3.5 CNG Equipment
The following equipment is required for a CNG filling station:
Gas Compressor
The purpose of compressor is to compress the gas enabling it to discharge the gas for
refueling. This compressor requires an input pressure of 8 or 15 PSIG5 from the main gas
supply with the outlet pressure of 3,625 PSIG. With this discharge pressure, the equipment
can refuel 50 vehicles per hour.
Electric Control Panel
Electric control panel is required to operate the gas compressor. This panel will be mounted
in the control room.
Storage Cascade
Storage cascades/cylinders are used to store the natural gas.
Priority Panel for Vehicle Priority
During rush hours, the compressor is directly connected to the dispenser, bypassing the
storage cascades/cylinders with the help of priority panel, facilitating the refueling of
vehicles at a faster rate.
CNG Dispenser high flow dual hose
Gas is filled into the vehicles with the help of dispenser. This dual hose dispenser is
capable of handling two vehicles at a time.
There are various foreign manufacturers providing the CNG filling station equipment. In
this pre-feasibility report, a British origin compressor6 has been selected. This equipment is
selected because of its low electricity consumption, higher outlet pressure, low
maintenance, durable working, longer periods between overhauls and good market repute
and presence.
3
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Pre-Feasibility Study
Different gas pressures are available in different areas of Pakistan from the main gas supply
line. The pressure of 15 PSIG is not easily available at every location. Where the gas
pressure of 15 PSIG is not available, in that situation, the model with inlet pressure of 8
PSIG is used, which has been manufactured to operate at a lower gas pressure. However,
the consumption of electricity increases.
The total capacity of the selected equipment is 400M3/Hr with a total power load of 93
KW.
All the CNG filling station equipment is foreign manufactured and imported on the specific
requirement of the sponsor by the authorized agent. Usually, the equipment is delivered
within 12 to 16 weeks from the receipt of purchase order and initial payment. The details of
this equipment and accessories are available in Annexure # 1.1.1.
7.3.6 Suppliers
The Central Board of Revenue (CBR) has specified the list of compressors, storage
cylinders, CNG vehicle cylinders, CNG machinery & equipment and conversion kits in
SRO 38(1)/98. For the convenience of investor, a list of some of the available equipment
and machinery is given below:
Table 7-4
Suppliers Name
Suppliers Name
Rix Services, New Zealand
Compare UK Ltd, UK
Norwalk Company Inc. USA
Sulzer Burckhardt Engg. Works Switzerland
Hamworthy, Bellis & Morcom UK
Safe s.r.l Italy
Unigas NewZealand
Compare Mahle GmbH, Germany
Sicom SRL , Italy
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PREF-34/May, 2005/Rev 2
Available Models
2JJS3G-178, FX-150, 3KX3G-40,
6W5G-150
Gazpack 36, Gazpack37
C-75-3, C150-4, NQSV3
C40111S, C50214S
H430H-WL, H280H-WL, V130H-WL
SW75SE-F1-EM, SW110SE-F1-EM,
SW110-F1-EM, SW132-F1-EM,
SW90F0, 35-EM
CNG90, CNG 125, CNG250
ZW-3.45/250JX, ZW-5.0/1-23, ZW5.52/0.5-250JX
L-3.8/1-250, L-3/1-250, L-5/0.56-250,
L-2.9/0.56-250, L-4.65/0.56-250,
W3.8/0.56-250, W-3.8/1-250
RHINO PAR-75VE 4-8
RHINO PAR-1-DE 4-82
RHINO-PAR 150DE4-10
Apollo VR-550
5409.2NG.EU
650.250.20-IFDE-23SE
Pre-Feasibility Study
Designation
Manager
Deputy Manager
Accountant
Cashier
Dispenser
Operator
Watchmen
Sweeper
Total
No. of
Employees for
two shifts
1
1
1
2
4
2
2
1
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PREF-34/May, 2005/Rev 2
Salary per
month
20,000
10,000
6,000
4,500
3,500
5,500
3,500
2,500
Total salary
per month
(Rupees)
240,000
120,000
72,000
108,000
168,000
132,000
84,000
30,000
954,000
Pre-Feasibility Study
Years
No. Of Cars
1
202
2
303
3
363
4
435
5
522
6
600
7
690
8
793
9
911
10
1,047
The average number of cars in the first years is estimated at 202 cars per day, starting from
120 cars per day in the first month and going up to 290 cars per day in the 12th month.. In
the second year, it has increased to 303 cars per day. After second year, number of cars is
increasing at a rate of 20% till fifth year because the project would be in its growth stage.
An increase of 15% has been considered from sixth year, because at that time, the project
would be at its maturity stage.
8.2.2 Gas per Vehicle
Currently, the CNG cylinders with two different capacities are installed in the CNG fitted
cars. One type of cylinder has a capacity of 40 kg and the other has a capacity of 50 kg.
Gas of 6.6 and 11.12 cubic meter can be filled in the cylinders of 40kg and 50kg
respectively. A weighted average of 9.31 cubic meters of gas per vehicle has been taken for
the revenue calculations.
14
PREF-34/May, 2005/Rev 2
Pre-Feasibility Study
Table 8-2
Average Volume
Cylinder Type
40 kg
50 kg
Weighted Average Volume
Volume
(cubic meters)
6.6
11.12
Percentage Use
40%
60%
9.31 cubic meters
Depreciation Rates
Building
CNG Plant & Equipment
Office Equipment
Furniture & Fixture
5%
10%
20%
10%
Tax Adjustments
Land
Building
CNG Plant & Equipment
Office Equipment
Furniture & Fixture
0%
5%
10%
10%
10%
In addition to normal depreciation and first year allowances, multiple shift allowance is
also provided for the plant and machinery, which operates on double or triple shift basis. In
this proposed project, CNG plant will run on two-shift basis during the whole year. So
multiple shift allowance is calculated and added to the depreciation of CNG plant and
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PREF-34/May, 2005/Rev 2
Pre-Feasibility Study
equipment for all the ten years. Multiple shift allowance has been taken as 66.6% of the
normal depreciation allowance.
8. 6
Preliminary expenses amounting to Rs.820, 000/- will be amortized at the rate of 20% per
annum.
8.7 Working Capital
Working capital is calculated on the basis of following assumptions:
8.7.1 Accounts Receivables
Mostly, the sale of CNG is on cash basis. However, some CNG stations do offer a credit
facility to reputable companies on agreed terms and conditions. Therefore, receivables are
estimated at 6% of the total sales amount.
8.7.2 Advances to Employees
Advances to employees are calculated on the basis of 30 days of both payroll and staff
benefits.
8.7.3 Accrued Utilities and Power Expenses
Normally, it would take 20 days to deposit the utilities (electricity, water and telephone)
bills. Therefore, utility expenses for 20 days have been taken as the basis for working
capital computation.
8.7.4 Accounts Payable
Cost of gas and electricity for 20 days has been considered in calculating accounts payable.
8.7.5 Sales Tax Payable
Every company is required to deposit the amount of sales tax collected from the consumers,
within 14 days. The same has been taken as the basis for calculating the amount of sales tax
payable.
8.8 Sales Tax
The sales tax levied by Government of Pakistan is charged to the customers at the rate of
15% on the sale of gas. These funds are deposited after every 14 days in favor of
Government of Pakistan.
8.9 Ratio/Financial Analysis
The figures for the rate of return on investment and return on equity are averaged for the
first five years to make it more reasonable.
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PREF-34/May, 2005/Rev 2
Pre-Feasibility Study
17
PREF-34/May, 2005/Rev 2
Pre-Feasibility Study
FINANCIAL ANALYSIS
1 7 ,0 0 0 , 0 0 0
1 ,7 0 0 ,0 0 0
8 ,7 3 2 ,1 0 0
5 1 3 ,0 4 0
1 0 0 ,0 0 0
8 5 ,0 0 0
2 8 ,1 3 0 ,1 4 0
1 ,8 0 0 ,0 0 0
7 5 ,0 0 0
3 5 0 ,0 0 0
1 0 0 ,0 0 0
2 5 ,0 0 0
8 5 ,0 0 0
3 5 ,0 0 0
1 0 0 ,0 0 0
2 0 ,0 0 0
3 0 ,0 0 0
8 2 0 ,0 0 0
3 7 7 ,3 9 0
R s . 3 1 ,1 2 7 ,5 3 0
50%
50%
1 US$ =
Rs.
P ro je c t R e tu rn s
IR R
NPV @ 20%
P a y B a c k P e r io d
1 5 ,5 6 3 ,7 6 5
1 5 ,5 6 3 ,7 6 5
R s . 3 1 ,1 2 7 ,5 3 0
6 0 .5 0
%
R s.
Y rs.
18
PREF-34/May, 2005/Rev 2
R s.
2 3 .1 %
3 ,4 0 1 ,2 4 6
4
Pre-Feasibility Study
Gross Sales
Less: Sales Tax
Net Sales
Cost of Sales
Gross Profit
Operating Expenses:
Operating Expenses
Depreciation
Amortization of Preliminary Exp.
Operating Profit
Interest on Loan
Interest on Lease
Profit before Tax
Taxation (See working)
Profit after Tax
Balance B/F
Retained Earnings
Balance C/F
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
202 Cars
303 Cars
363 Cars
435 Cars
522 Cars
600 Cars
690 Cars
793 Cars
911 Cars
1047 Cars
13,139,090
1,714,651
11,424,439
20,375,524
2,659,006
17,716,518
25,673,161
3,350,347
22,322,813
32,303,626
4,215,623
28,088,003
40,702,568
5,311,685
35,390,883
49,123,789
6,410,655
42,713,135
59,316,976
7,740,865
51,576,110
71,580,116
9,341,205
62,238,911
86,342,950
11,267,755
75,075,195
104,194,426
13,597,373
90,597,054
5,516,754
5,907,685
8,937,181
8,779,338
11,766,663
10,556,150
15,474,153
12,613,850
20,382,143
15,008,740
25,720,252
16,992,883
32,478,303
19,097,807
40,992,720
21,246,191
51,725,438
23,349,757
65,304,354
25,292,699
2,032,005
986,710
164,000
3,182,715
2,724,970
2,147,885
890,289
164,000
3,202,174
5,577,164
2,284,084
803,698
164,000
3,251,782
7,304,369
2,441,762
725,883
164,000
3,331,646
9,282,204
2,622,282
810,345
164,000
3,596,627
11,412,113
2,896,712
731,953
3,628,665
13,364,218
3,120,922
661,391
3,782,313
15,315,494
3,374,100
597,852
3,971,951
17,274,240
3,658,487
540,615
4,199,101
19,150,656
3,976,614
489,037
4,465,652
20,827,048
1,089,464
1,089,464
1,635,507
57,122
1,578,384
1,578,384
1,578,384
1,852,088
1,852,088
3,725,076
487,101
3,237,975
1,578,384
4,816,359
4,816,359
1,416,303
1,416,303
5,888,066
2,126,398
3,761,668
4,816,359
8,578,027
8,578,027
980,517
980,517
8,301,687
2,976,423
5,325,264
8,578,027
13,903,291
13,903,291
544,732
544,732
10,867,382
3,841,159
7,026,222
13,903,291
20,929,514
20,929,514
108,946
108,946
13,255,272
4,687,398
8,567,874
20,929,514
29,497,388
29,497,388
15,315,494
5,415,542
9,899,952
29,497,388
39,397,339
39,397,339
17,274,240
6,105,492
11,168,748
39,397,339
50,566,087
50,566,087
19,150,656
6,764,544
12,386,112
50,566,087
62,952,199
62,952,199
20,827,048
7,351,985
13,475,063
62,952,199
76,427,262
76,427,262
19
PREF-34/May, 2005/Rev 2
Pre-Feasibility Study
Start up
10
27,617,100
27,617,100
26,630,390
26,630,390
25,740,101
25,740,101
24,936,403
24,936,403
24,210,520
24,210,520
24,944,476
24,944,476
24,212,523
24,212,523
23,551,132
23,551,132
22,953,280
22,953,280
22,412,665
22,412,665
21,923,628
21,923,628
820,000
28,437,100
656,000
27,286,390
492,000
26,232,101
328,000
25,264,403
164,000
24,374,520
24,944,476
24,212,523
23,551,132
22,953,280
22,412,665
21,923,628
1,800,000
1,800,000
1,800,000
1,800,000
1,800,000
1,800,000
1,800,000
1,800,000
1,800,000
1,800,000
1,800,000
1,800,000
1,800,000
1,800,000
1,800,000
1,800,000
1,800,000
1,800,000
1,800,000
1,800,000
1,800,000
1,800,000
513,040
377,390
890,430
TOTAL ASSETS
31,127,530
CAPITAL EMPLOYED REPRESENTED BY:
793,364
87,450
513,040
1,042,927
2,436,781
31,523,171
-
1,230,314
96,195
513,040
1,999,944
3,839,493
31,871,594
-
1,550,195
105,815
513,040
3,469,418
5,638,468
32,702,872
-
1,950,556
116,396
513,040
6,398,351
8,978,343
35,152,863
-
2,457,700
128,036
513,040
9,535,653
12,634,428
39,378,904
-
2,966,190
140,839
513,040
17,094,942
20,715,011
46,727,534
-
3,581,674
154,923
513,040
27,451,315
31,700,953
57,052,084
-
4,322,147
170,415
513,040
38,994,185
43,999,787
68,753,067
-
5,213,555
187,457
513,040
51,680,102
57,594,154
81,806,819
-
6,291,462
206,203
513,040
65,388,343
72,399,047
96,122,675
-
15,563,765
15,563,765
15,563,765
1,578,384
17,142,149
15,563,765
4,816,359
20,380,124
15,563,765
8,578,027
24,141,792
15,563,765
13,903,291
29,467,056
15,563,765
20,929,514
36,493,279
15,563,765
29,497,388
45,061,153
15,563,765
39,397,339
54,961,104
15,563,765
50,566,087
66,129,852
15,563,765
62,952,199
78,515,964
15,563,765
76,427,262
91,991,027
15,563,765
15,563,765
14,007,389
14,007,389
10,894,636
10,894,636
7,781,883
7,781,883
4,669,130
4,669,130
1,556,377
1,556,377
31,127,530
296,952
10,000
66,681
373,633
31,523,171
482,429
11,000
103,406
596,834
31,871,594
636,806
12,100
130,291
779,197
32,702,872
839,426
13,310
163,941
1,016,677
35,152,863
1,108,042
14,641
206,566
1,329,249
39,378,904
FIXED ASSETS
Preliminary Expenses
OTHER ASSETS
Security
CURRENT ASSETS
Accounts Receivables
Advances to Employees
Stores & Spares
Cash & Bank Balances
SHARE CAPITAL
1,556,377 Shares @ Rs.10/- each
UNAPP. PROFIT/(LOSS)
LONG TERM LIABILITIES
Finance Lease
Long Term Loan
CURRENT LIABILITIES
Creditors
Utility Bills Payable
Sales Tax Payable
TOTAL
20
PREF-34/May, 2005/Rev 2
1,400,973
16,105
249,303
1,666,381
46,727,534
1,772,231
17,716
301,034
2,090,980
57,052,084
2,240,459
19,487
363,269
2,623,215
68,753,067
2,831,228
21,436
438,190
3,290,855
81,806,819
3,579,282
23,579
528,787
4,131,648
96,122,675
Pre-Feasibility Study
1,635,507
986,710
164,000
3,725,076
890,289
164,000
5,888,066
803,698
164,000
1,150,710
2,786,217
1,054,289
4,779,365
2,786,217
10
8,301,687
725,883
164,000
10,867,382
810,345
164,000
13,255,272
731,953
-
15,315,494
661,391
-
17,274,240
597,852
-
19,150,656
540,615
-
20,827,048
489,037
-
967,698
6,855,764
889,883
9,191,570
974,345
11,841,727
731,953
13,987,225
661,391
15,976,885
597,852
17,872,091
540,615
19,691,271
489,037
21,316,085
4,779,365
6,855,764
9,191,570
11,841,727
13,987,225
15,976,885
17,872,091
19,691,271
21,316,085
1,556,377
57,122
3,112,753
487,101
3,112,753
2,126,398
3,112,753
2,976,423
3,112,753
3,841,159
1,556,377
4,687,398
5,415,542
6,105,492
6,764,544
7,351,985
1,613,499
1,172,718
3,599,854
1,179,511
5,239,151
1,616,612
6,089,176
3,102,395
8,498,213
3,343,514
6,243,774
7,743,450
5,415,542
10,561,343
6,105,492
11,766,599
6,764,544
12,926,727
7,351,985
13,964,100
507,181
665,537
377,390
222,493
957,017
1,042,927
147,138
1,469,474
1,999,944
173,462
2,928,933
3,469,418
206,212
3,137,302
6,398,351
184,161
7,559,290
9,535,653
204,970
10,356,373
17,094,942
223,729
11,542,870
27,451,315
240,811
12,685,916
38,994,185
255,859
13,708,241
51,680,102
1,042,927
1,999,944
3,469,418
6,398,351
9,535,653
17,094,942
27,451,315
38,994,185
51,680,102
65,388,343
507,181
729,674
876,813
1,050,275
1,256,487
1,440,648
1,645,617
1,869,346
2,110,157
2,366,017
507,181
222,493
147,138
173,462
206,212
184,161
204,970
223,729
240,811
255,859
OTHER SOURCES
APPLICATION
Repayments of Loan
Tax Payment
Dividend Paid
- Cash
SURPLUS / (DEFICIT)
INCREASE/(DECREASE) IN WORKING CAPITAL
NET INCREASE/(DECREASE)
OPENING BANK BALANCES
CLOSING CASH BALANCE
WORKING CAPITAL
Increase
21
PREF-34/May, 2005/Rev 2
Pre-Feasibility Study
9.5 Revenues
Revenues
Quantity of Gas Sale per Vehicle
Annual Increase in the Sale Price of Gas
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
202 Cars
303 Cars
363 Cars
435 Cars
522 Cars
600 Cars
690 Cars
793 Cars
911 Cars
1047 Cars
255
No. of Cars / day
Rs.
Total Revenue
1878
2816
3380
4050
4860
5586
6424
7383
8481
9748
57206
84488
101386
121496
145795
167580
192717
221485
254442
292427
686473
1013859
1216631
1457946
1749535
2010960
2312604
2657819
3053308
3509125
19.14
13,139,090
Rs.
2.50
Rs.
1,714,651
Rs.
20.10
20,375,524
Rs.
2.62
Rs. 2,659,006
Rs.
21.10
25,673,161
Rs.
2.75
Rs. 3,350,347
Rs.
22.16
32,303,626
Rs.
2.89
Rs. 4,215,623
Rs.
Rs.
3.04
Rs. 5,311,685
22
PREF-34/May, 2005/Rev 2
23.26
40,702,568
Rs.
24.43
49,123,789
Rs.
3.19
Rs. 6,410,655
Rs.
25.65
59,316,976
Rs.
3.35
Rs. 7,740,865
Rs.
26.93
71,580,116
Rs.
3.51
Rs. 9,341,205
Rs.
28.28
86,342,950
Rs.
3.69
Rs. 11,267,755
Rs.
29.69
104,194,426
Rs.
3.87
Rs. 13,597,373
Pre-Feasibility Study
Rs.
6.50
0.186 KW
Rs.
6.92
Rs.
0.25
10%
Year 1
No. of Cars / day
202 Cars
Annual Gas Sold (in M3)
686,473
Electricity Consumed in KWH
127,684
Rate of Gas
Rs.
6.50
Rate of Electricity
Rs.
6.92
Cost of Sales
Cost of Gas Sold
4,462,074
Cost of Electricity
883,062
Maintenance
171,618
Cost of Sales
5,516,754
/Cubic Meter
/Cubic Meter
/KWHr
/Cubic Meter
Year 2
303 Cars
1,013,859
188,578
Rs.
7.15
Rs.
7.61
Year 3
363 Cars
1,216,631
226,293
Rs.
7.87
Rs.
8.37
Year 4
435 Cars
1,457,946
271,178
Rs.
8.65
Rs.
9.21
Year 5
522 Cars
1,749,535
325,414
Rs.
9.52
Rs.
10.13
Year6
600 Cars
2,010,960
374,039
Rs.
10.47
Rs.
11.14
Year 7
690 Cars
2,312,604
430,144
Rs.
11.52
Rs.
12.25
Year 8
793 Cars
2,657,819
494,354
Rs.
12.67
Rs.
13.48
Year 9
911 Cars
3,053,308
567,915
Rs.
13.93
Rs.
14.83
Year 10
1047 Cars
3,509,125
652,697
Rs.
15.33
Rs.
16.31
7,249,092
1,434,624
253,465
9,568,801
1,893,704
304,158
12,613,420
2,496,246
364,487
16,649,714
3,295,045
437,384
21,051,363
4,166,149
502,740
26,629,974
5,270,178
578,151
33,665,690
6,662,575
664,455
42,542,734
8,419,377
763,327
53,783,169
10,643,904
877,281
8,937,181
11,766,663
15,474,153
20,382,143
25,720,252
32,478,303
40,992,720
51,725,438
65,304,354
23
PREF-34/May, 2005/Rev 2
Pre-Feasibility Study
360
Current Assets
Basis
Receivables
Sales
Advances to Employees
Stores & Spares Stock
Payroll+Benefits
10
Days
25
793,364
1,230,314
1,550,195
1,950,556
2,457,700
2,966,190
3,581,674
4,322,147
5,213,555
6,291,462
30
87,450
96,195
105,815
116,396
128,036
140,839
154,923
170,415
187,457
206,203
880,814
1,326,509
1,656,010
2,066,952
2,585,736
3,107,029
3,736,597
4,492,562
5,401,012
6,497,665
Current Liabilities
Accrued Utilities & Power
Expenses
Utilities Expenses
20
10,000
11,000
12,100
13,310
14,641
16,105
17,716
19,487
21,436
23,579
Accounts Payable
20
296,952
482,429
636,806
839,426
1,108,042
1,400,973
1,772,231
2,240,459
2,831,228
3,579,282
Sales Tax
14
66,681
103,406
130,291
163,941
206,566
249,303
301,034
363,269
438,190
528,787
373,633
596,834
779,197
1,016,677
1,329,249
1,666,381
2,090,980
2,623,215
3,290,855
4,131,648
507,181
729,674
876,813
1,050,275
1,256,487
1,440,648
1,645,617
1,869,346
2,110,157
2,366,017
24
PREF-34/May, 2005/Rev 2
Pre-Feasibility Study
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Profitability Ratios
Gross Profit
51.71%
49.55%
47.29%
44.91%
42.41%
39.78%
37.03%
34.14%
31.10%
27.92%
Operating Profit
23.85%
31.48%
32.72%
33.05%
32.25%
31.29%
29.69%
27.75%
25.51%
22.99%
14.32%
21.03%
26.38%
29.56%
30.71%
31.03%
29.69%
27.75%
25.51%
22.99%
13.82%
18.28%
16.85%
18.96%
19.85%
20.06%
19.19%
17.94%
16.50%
14.87%
5.01%
10.16%
11.50%
15.15%
17.84%
18.34%
17.35%
16.24%
15.14%
14.02%
9.21%
15.89%
Rs. 1.05
Rs. 2.39
Rs. -
Rs. -
15.58%
Rs.
3.78
Rs. -
18.07%
Rs.
5.33
Rs. -
19.25%
Rs.
6.98
Rs. -
19.01%
Rs.
8.52
Rs. -
18.01%
Rs.
9.84
Rs. -
16.89%
Rs. 11.10
Rs. -
15.78%
Rs. 12.30
Rs. -
14.65%
Rs. 13.38
Rs. -
Liquidity Ratios
Current Ratio
6.52
6.43
7.24
8.83
9.50
12.43
15.16
16.77
17.50
17.52
Debt Ratios
Debt Ratio (of total assets)
Debt Equity
Interest Coverage Ratio
44.44%
34.18%
23.80%
13.28%
3.95%
0.00%
0.00%
0.00%
0.00%
0.00%
81.7%
53.5%
32.2%
15.8%
4.3%
0.0%
0.0%
0.0%
0.0%
0.0%
2.50
3.01
5.16
9.47
20.95
122.67
0.00
0.00
0.00
0.00
25
PREF-34/May, 2005/Rev 2
Pre-Feasibility Study
26
PREF-34/May, 2005/Rev 2
Pre-Feasibility Study
27
PREF-34/May, 2005/Rev 2
Pre-Feasibility Study
Annexure 10
28
PREF-34/May, 2005/Rev 2
Pre-Feasibility Study
29
PREF-34/May, 2005/Rev 2