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Entrepreneur Project

Project Describe the importance of Entrepreneurship. how to manage the Project etc etc etc. bla bla bla

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Usman

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0% found this document useful (0 votes)

119 views

Entrepreneur Project

Project Describe the importance of Entrepreneurship. how to manage the Project etc etc etc. bla bla bla

Uploaded by

Usman

Available Formats

Download as XLS, PDF, TXT or read online on Scribd

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Financial Evaluation of

Key Variables
Type of Machinery
Cost of One Machine
Number of Machines
Total Investment in Project
Debt
Equity
Interest Rate
Interest Tenure
Interest Payments per year
Total Number of Employees

Total Cash Flow

Net Cash Flow to Project (after tax)
Interest Costs
Principal Repayment
Total Debt Servicing*
Net Cash Flow to Investors

IRR
Payback Period (yrs)

123,534,521
49,413,808
61,767,260
10%
7
6

50%
50%

Equity
#N/A
#N/A

Year 1
(2,711,214)

Year 2
#N/A

Year 3
#N/A

Year 4
#N/A

6,193,432
6,193,432

#N/A
#N/A
#N/A

(8,904,646)

#N/A

Year 5
#N/A

Year 6
#N/A

Year 7
#N/A

#N/A
#N/A
#N/A

#N/A

Project
#N/A
#N/A

*Includes leases if any

Statement Summaries
Initial Investment
Capital Investment
Land
Building/Infrastructure
Machinery & equipment
Furniture & fixtures
Office vehicles
Office equipment
Pre-operating costs
Training costs
Total Capital Costs

Rs. in actuals
36,000,000
24,840,000
40,113,000
500,000
4,033,080
1,640,000
3,226,125
200,000
110,552,205

Working Capital
Equipment spare part inventory
Raw material inventory

Rs. in actuals
12,000,000

Year 8
#N/A

Upfront land lease rental for Factory

Upfront building rental for Factory
Upfront machinery & equipment lease rental
Upfront office equipment lease rental
Upfront office vehicles lease rental
Upfront insurance payment
Cash
Total Working Capital

282,316
700,000
12,982,316

Total Investment

123,534,521

Initial Financing
Debt
Equity
Export re-finance facility

Rs. in actuals
61,767,260
61,767,260
-

Statement Summaries
Income Statement
Year 1
Revenue
Cost of goods sold
Gross Profit

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

295,866,000
180,067,300
115,798,700

371,804,940
196,657,318
175,147,622

464,470,171
213,733,940
250,736,231

577,270,070
231,390,841
345,879,229

714,275,500
249,741,623
464,533,877

880,344,554
268,924,389
611,420,165

1,081,270,252
289,107,417
792,162,834

1,254,273,492
295,247,512
959,025,980

General administration & selling expenses

Administration expense
Rental expense
Utilities expense
Communications expense (phone, fax, etc.)
Office vehicles running expense
Office expenses (stationary, etc.)
Promotional expense
Insurance expense
Professional fees (legal, audit, etc.)
Repair & Maintenance Exp.
Depreciation expense
Amortization expense
Misc. Exp.
Subtotal
Operating Income

6,492,000
300,000
324,600
2,400,000
1,200,000
2,400,000
282,316
1,200,000
6,034,608
342,612
600,000
21,576,136
94,222,564

8,115,000
336,000
405,750
2,640,000
1,320,000
2,640,000
254,084
1,320,000
6,034,608
342,612
660,000
24,068,055
151,079,567

10,143,750
376,320
507,188
2,904,000
1,452,000
2,904,000
225,852
1,452,000
6,034,608
342,612
726,000
27,068,330
223,667,901

12,679,688
421,478
633,984
3,194,400
1,597,200
3,194,400
197,621
1,597,200
6,034,608
342,612
798,600
30,691,792
315,187,437

15,849,609
472,056
792,480
3,513,840
1,756,920
3,513,840
169,389
1,756,920
6,034,608
342,612
878,460
35,080,736
429,453,141

19,812,012
528,703
990,601
3,865,224
1,932,612
3,865,224
141,158
1,932,612
6,125,228
342,612
966,306
40,502,291
570,917,873

24,765,015
592,147
1,238,251
4,251,746
2,125,873
4,251,746
112,926
2,125,873
6,125,228
342,612
1,062,937
46,994,355
745,168,479

30,956,268
663,204
1,547,813
4,676,921
2,338,461
4,676,921
84,695
2,338,461
6,125,228
342,612
1,169,230
54,919,815
904,106,164

Other income
Gain / (loss) on sale of assets
Earnings Before Interest & Taxes

94,222,564

151,079,567

223,667,901

315,187,437

656,000
430,109,141

570,917,873

745,168,479

904,106,164

Interest expense
Earnings Before Tax

6,193,432
88,029,132

#N/A
#N/A

Taxable earnings for the year

Tax
NET PROFIT/(LOSS) AFTER TAX

88,029,132
29,929,905
58,099,227

#N/A
#N/A
#N/A

Balance brought forward

Total profit available for appropriation
Dividend
Balance carried forward

58,099,227
58,099,227

58,099,227
#N/A
#N/A
#N/A

#N/A
#N/A
#N/A
#N/A

Year 0

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

12,700,000
282,316
12,982,316

3,795,354
14,793,300
15,005,608
43,747,541
254,084
77,595,888

#N/A
33,383,547
16,388,110
49,762,828
225,852
#N/A

#N/A
41,813,756
17,811,162
56,270,275
197,621
#N/A

#N/A
52,087,012
19,282,570
63,304,059
169,389
#N/A

#N/A
64,577,278
20,811,802
70,900,547
141,158
#N/A

#N/A
79,731,003
22,410,366
79,098,422
112,926
#N/A

#N/A
98,080,740
24,092,285
87,938,834
84,695
#N/A

#N/A
116,777,187
24,603,959
92,335,776
56,463
#N/A

Fixed assets
Land
Building/Infrastructure
Machinery & equipment
Furniture & fixtures
Office vehicles
Office equipment
Total Fixed Assets

36,000,000
24,840,000
40,113,000
500,000
4,033,080
1,640,000
107,126,080

36,000,000
23,598,000
36,101,700
450,000
3,629,772
1,312,000
101,091,472

36,000,000
22,356,000
32,090,400
400,000
3,226,464
984,000
95,056,864

36,000,000
21,114,000
28,079,100
350,000
2,823,156
656,000
89,022,256

36,000,000
19,872,000
24,067,800
300,000
2,419,848
328,000
82,987,648

36,000,000
18,630,000
20,056,500
250,000
2,016,540
2,093,102
79,046,142

36,000,000
17,388,000
16,045,200
200,000
1,613,232
1,674,481
72,920,913

36,000,000
16,146,000
12,033,900
150,000
1,209,924
1,255,861
66,795,685

36,000,000
14,904,000
8,022,600
100,000
806,616
837,241
60,670,457

Intangible assets
Pre-operation costs
Training costs
Total Intangible Assets
TOTAL ASSETS

3,226,125
200,000
3,426,125
123,534,521

2,903,512
180,000
3,083,512
181,770,872

2,580,900
160,000
2,740,900
#N/A

2,258,287
140,000
2,398,287
#N/A

1,935,675
120,000
2,055,675
#N/A

1,613,062
100,000
1,713,062
#N/A

1,290,450
80,000
1,370,450
#N/A

967,837
60,000
1,027,837
#N/A

645,225
40,000
685,225
#N/A

5,361,855
#N/A
#N/A

5,880,479
#N/A
#N/A

6,421,051
#N/A
#N/A

6,986,563
#N/A
#N/A

7,580,559
#N/A
#N/A

8,207,248
#N/A
#N/A

8,641,935
#N/A
#N/A

#N/A
#N/A
#N/A

Statement Summaries
Balance Sheet

Assets
Current assets
Cash & Bank
Accounts receivable
Finished goods inventory
Equipment spare part inventory
Raw material inventory
Pre-paid insurance
Total Current Assets

Liabilities & Shareholders' Equity

Current liabilities
Accounts payable
Short term debt
Total Current Liabilities
Other liabilities
Deferred tax
Long term debt
Total Long Term Liabilities

61,767,260
61,767,260

137,125
61,767,260
61,904,385

Shareholders' equity
Paid-up capital
Retained earnings
Total Equity
TOTAL CAPITAL AND LIABILITIES

61,767,260
61,767,260
123,534,521

61,767,260
58,099,227
119,866,487
181,770,872

61,767,260
#N/A
#N/A
#N/A

62,604,501
#N/A
#N/A
#N/A

#N/A

Statement Summaries
Cash Flow Statement
Year 0
Operating activities
Net profit
Add: depreciation expense
amortization expense
Deferred income tax
Accounts receivable
Finished good inventory
Equipment inventory
Raw material inventory
Pre-paid building rent
Pre-paid lease interest
Advance insurance premium
Accounts payable
Other liabilities
Cash provided by operations

(282,316)
(282,316)

Year 1

Year 2

58,099,227
6,034,608
342,612
137,125
(14,793,300)
(15,005,608)
(43,747,541)
28,232
(8,904,646)

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

#N/A
6,034,608
342,612
#N/A
(18,590,247)
(1,382,501)
(6,015,287)
28,232
5,361,855
#N/A

#N/A
6,034,608
342,612
#N/A
(8,430,209)
(1,423,052)
(6,507,447)
28,232
518,624
#N/A

#N/A
6,034,608
342,612
#N/A
(10,273,256)
(1,471,408)
(7,033,784)
28,232
540,571
#N/A

#N/A
6,034,608
342,612
#N/A
(12,490,266)
(1,529,232)
(7,596,487)
28,232
565,513
#N/A

#N/A
6,125,228
342,612
#N/A
(15,153,724)
(1,598,564)
(8,197,876)
28,232
593,996
#N/A

#N/A
6,125,228
342,612
#N/A
(18,349,738)
(1,681,919)
(8,840,412)
28,232
626,688
#N/A

#N/A
6,125,228
342,612
#N/A
(18,696,447)
(511,675)
(4,396,942)
28,232
434,687
#N/A

#N/A
#N/A
837,241
#N/A

#N/A
#N/A
#N/A

Financing activities
Change in long term debt
61,767,260
Change in short term debt
Change in export re-finance facility
Add: land lease expense
Land lease payment
Lease principal repayment
Issuance of shares
61,767,260
Purchase of (treasury) shares
Cash provided by / (used for) financing activ 123,534,521

#N/A
#N/A
#N/A

Investing activities
Capital expenditure
(110,552,205)
Acquisitions
Cash (used for) / provided by investing activ (110,552,205)

(2,093,102)
(2,093,102)

NET CASH

12,700,000

(8,904,646)

#N/A

Cash balance brought forward

Cash available for appropriation
Dividend

12,700,000
-

12,700,000
3,795,354
-

3,795,354
#N/A
#N/A

#N/A
#N/A
#N/A

Cash carried forward

Statement Summaries
Key Variables

12,700,000

3,795,354

#N/A

SMEDA

Rs. in
Year 9

actuals
Year 10
#N/A
#N/A
#N/A
#N/A
#N/A

#N/A
#N/A
#N/A

#N/A

SMEDA

SMEDA
Rs. in actuals
Year 9
Year 10
1,454,957,251
302,604,376
1,152,352,875

1,687,750,411
311,453,898
1,376,296,513

38,695,335
742,789
1,934,767
5,144,613
2,572,307
5,144,613
56,463
2,572,307
6,125,228
342,612
1,286,153
64,617,188
1,087,735,687

48,369,169
831,924
2,418,458
5,659,074
2,829,537
5,659,074
28,232
2,829,537
6,125,228
342,612
1,414,769
76,507,616
1,299,788,897

1,087,735,687

1,299,788,897

#N/A
#N/A

#N/A
#N/A
#N/A

#N/A
#N/A
#N/A
#N/A

SMEDA
Rs. in actuals
Year 9
Year 10

#N/A
135,461,537
25,217,031
96,952,565
28,232
#N/A

#N/A
157,135,383
25,954,491
101,800,193
#N/A

36,000,000
13,662,000
4,011,300
50,000
403,308
418,620
54,545,228

36,000,000
12,420,000
48,420,000

322,612
20,000
342,612
#N/A

#N/A

8,883,096
#N/A
#N/A

9,159,473
#N/A
#N/A

#N/A
#N/A
#N/A

62,604,501
#N/A
#N/A
#N/A

#N/A

SMEDA
Rs. in actuals
Year 9
Year 10

#N/A
6,125,228
342,612
#N/A
(18,684,350)
(613,072)
(4,616,789)
28,232
241,161
#N/A

#N/A
6,125,228
342,612
#N/A
(21,673,846)
(737,460)
(4,847,628)
28,232
276,377
#N/A

#N/A
#N/A
#N/A

#N/A

#N/A
#N/A
#N/A

#N/A

SMEDA

Operations Key

SMEDA

Financial Assumptions
Description
Project life (yrs)
Debt
Debt facility : Bank 1
Debt facility : Bank 2
Equity
Debt facility : Bank 1

Quantity / Area

Amount / Other
10

Rationale
Currently not operative

50%

80%
20% % of debt obtained through the two different sources

50%

10%

Foreign denomination option currently not operative

Market rate

7
1

Treatment of interest during grace period

Debt payments / year

6 Annual=1, Semi -annual=2, Quart erl y=4, Bi-monthly=6, Monthl y=12

Foreign denomination option currently not operative

10%

Treatment of interest during grace period

Debt payments / year
Short Term Debt
Interest rate on short term debt

6
1
1

4 Annual=1, Semi -annual=2, Quart erl y=4, Bi-monthly=6, Monthl y=12

12 Annual=1, Semi -annual=2, Quart erl y=4, Bi-monthly=6, Monthl y=12

Short term debt payments / year

Interest on cash in bank

Income Tax

Cost / Rate

Pak Rs.
Interest
Capitalized
to be paid
Pak Rs.
Interest
Capitalized
to be paid
I
Regular
Higher of either
ITurnover

Debt denomination
Interest rate
Debt tenure
Debt grace period (years)

Debt facility : Bank 2

Debt denomination
Interest rate
Debt tenure
Debt grace period (years)

Tax calculation
Corporate tax rate
Turnover tax rate
Dividend rate
Rate of Return on Equity
Discount rate
Interest rate on machinery & equipment lease
Machinery & equipment lease tenure

34%
1%
60%
22%
14%
25%

Office equipment lease payments / year

Interest rate on office vehicles lease
Office vehicles lease tenure
Office vehicles lease payments / year
Factory to be built on Year
Showroom to be built on Year

1=regular, 2=flat, 3=higher of either

For NPV calculations

Market rate
7
12 Annual=1, Semi -annual=2, Quart erl y=4, Bi-monthly=6, Monthl y=12

Machinery & equipment lease payments / year

Interest rate on office equipment lease
Office equipment lease tenure

25%

Market rate
7
12 Annual=1, Semi -annual=2, Quart erl y=4, Bi-monthly=6, Monthl y=12

25%

Market rate
5
12 Annual=1, Semi -annual=2, Quart erl y=4, Bi-monthly=6, Monthl y=12

Operations Key

SMEDA

Financial Incentive Assumptions

Description
Exports will start from which year
Domestic sales as a proportion of total sales
Export sales as a proportion of total sales
Export sales growth rate

Quantity / Area

Cost / Rate

Amount / Other
Rationale
4 0=starting in year 09=starting in year 9
70% Project specific
30%
4% as %age of total sales

Yes
E required
Purchased
Leased
Not
L
Built
Rented
/ Purchased

Export re-financing availability

Export re-financing rate

10%

Export re-financing payments / year

Annual=1, Semi -annual=2, Quart erl y=4, Bi-monthly=6, Monthl y=12

Operations Key

SMEDA

Capital Investment Assumptions

Description
Land Cost for Factory
Factory to be built on Year

Quantity / Area

Cost / Rate

Amount / Other

Rationale

Land requirend
Land price / kanal
Land lease cost / kanal / year
Land purchase price
Land lease cost

9
4,000,000

In kanals

36,000,000
-

Description
Civil Works / Building

Quantity / Area

Cost / Rate

Amount / Other

80,000

1
720,000

Building rental cost / month

Rationale

Per month

12 Annual=1, Semi -annual=2, Quart erl y=4, Bi-monthly=6, Monthl y=12

Rent payment schedule

Rent Advance
Security
Building rent growth rate
Time required to complete civil works
Factory Area

Covered Area
Management Block, Offices
Shed on Production hall
Mosque + Guest Room
Flooring
Godown
Total covered area in sq. ft.
Total Infrastructure

5,000
17,000
1,450
3,000
10,000
36,450

3
3
10%
Same as inflation
5 months
Area Utilization
80%
Cost / sq. ft.
Total Cost
5,000,000 Rate in Rs. / sq. ft.
1,000
13,600,000 Rate in Rs. / sq. ft.
800
1,015,000 Rate in Rs. / sq. ft.
700
225,000 Rate in Rs. / sq. ft.
75
5,000,000 Rate in Rs. / sq. ft.
500
24,840,000

Conversion Table
1 ft. : m.
1 sq. ft. : sq. yd.
1 sq. ft. : sq. m.
1 sq. m. : sq. yd.
1 kanal : sq. ft.
1 kanal : sq. yd.
1 kanal : sq. m.
1 acre : sq. ft.
1 acre : sq. yd.
1 acre : sq. m.
1 acre : kanals

0.3048
0.1111
0.0929
1.1960
4,500.00
500.00
418.06
43,560.17
4,840.02
4,046.87
9.68

Purchased
Leased
Purchased
Leased

Description
Quantity / Area
Machinery & equipment
Machinery & equipment will be replaced after (yrs.)

Cost / Rate

Amount / Other

1
1
2

Time required to order & install machinery & equipment

Do civil works need to be completed before machinery & equipment can be installe

Total Machinery & Equipment

Description
Office equipment for Factory
Office equipment will be replaced after (yrs.)

Quantity / Area

Cost / Rate

Computer i3
UPS
Air Conditioners
Printer
Scanner
Fax Machine
Telephone Sets
Photocopying Machine
Miscellaneous
Total Office Equipment

10
10
5
2
1
1
20
1
1

Description
Quantity / Area
Furniture & fixtures for Factory
Furniture and fixtures will be replaced after (yrs)
Time required to order & install furniture & fixtures
Table & Chair for CEO
Table & Chair for Managers
Table & Chair for Officers & Supervis ors

1
4
12

Visitor Chairs
File Racks
Small Cabinets
Stool
Bench
Miscellaneous

20
4
7
12
12
1

30000
35000
55000
45000
15000
20000
2000
150000
400,000

Cost / Rate

22000
16000
10000
4600
8000
10,000
2000
3000
40000

Total Furniture & Fixtures

Rationale

Assumed life of equipment

months
1 = no,

2 = yes

40,113,000
Amount / Other
5

Time required to order & install office equipment

1
1
300,000
350,000
275,000
90,000
15,000
20,000
40,000
150,000
400,000
1,640,000

Rationale

Assumed life of equipment

months

Amount / Other
10
1
22,000
64,000

Rationale
Assumed life of equipment
months

120,000
92,000
32,000
70,000
24,000
36,000
40,000
500,000

Purchased
Leased

Description
Office vehicles
Office vehicles will be replaced after (yrs.)

Quantity / Area

Cost / Rate

2
1
2

637,000
690,000
678,000
446,000
475,000
669,000
739,000
889,000
1,750,000
889,000
2,500,000
849,000
1,245,000
685,000
715,000
800,000
916,000
3,400,000
620,000
661,500
419,000
950,000
535,000
730,000
750,000
965,000

Quantity / Area

Cost / Rate
1.0

Suzuki Ravi
Suzuki Bolan
Suzuki Mehran
Suzuki Khyber
Suzuki Cultus
Suzuki Baleno Gli
Toyota Corolla XE
Toyota Corolla GL
Toyota Corolla Gli
Toyota Corolla 2.0D
Toyota Hilux 4x2
Toyota Hilux 4x4
Toyota Hiace
Honda City EXI
Honda City EXIS
Honda Civic EXi
Honda Civic VTi
Honda Accord
Nissan Sunny 1400 cc
Nissan Sunny 2000 cc (diesel)
Hyundai Santro plus GL
Hyundai 100 Grace
Hyundai Shehzore
Mazda B2200 pickup
Shehzore with side walls deck
Mazda Truck
Office vehicles cost
Registration fee
Total Office Vehicles cost
Description
Equipment spare part inventory
Equipment spare part inventory
Raw material inventory
Raw material inventory
Finished goods inventory

Amount / Other
10

1
1,274,000
750,000
1,930,000
3,954,000
79,080
4,033,080
Amount / Other

Rationale

Assumed life of vehicles

% of office vehicles cost

Rationale
these many months production requirement
these many months production requirement
these many months production requirement
these many months production

3.0
1.0

Operations Key

SMEDA

Expense Assumptions
Description
Quantity / Area
Cost of goods sold 1
Cost of goods sold 2
Cost of goods sold growth rate
Operating costs 1 (direct labor)
Operating costs 2 (machinery maintenance)
Operating costs 3 (direct electricity)
Operating costs 4 (direct water)
Operating costs 5 (direct gas)
Operating costs growth rate
Office expenses (stationary, entertainment, janitorial services, etc
Promotional expense
Machinery & equipment insurance rate
Office vehicles insurance rate
Professional fees (legal, audit, consultants, etc.)
Land
Book depreciation rate
Building & infrastructure
Book depreciation rate
Accelerated depreciation allowed for tax purposes
Investment tax credit
Machinery & equipment
Book depreciation rate
Accelerated depreciation allowed for tax purposes
Investment tax credit
Office equipment
Book depreciation rate
Accelerated depreciation allowed for tax purposes
Investment tax credit
Furniture & fixtures
Book depreciation rate
Accelerated depreciation allowed for tax purposes
Investment tax credit
Office vehicles
Book depreciation rate
Accelerated depreciation allowed for tax purposes
Investment tax credit

Cost / Rate

Amount / Other

0.0%
-

Rationale
Input price per unit of production
Input price per unit of production
direct labor per unit of production
Machine maintenance per unit of production
Direct electricity cost per unit of production
Direct water cost per unit of production
Direct gas cost per unit of production

5.0%
100,000 per month
0.0%
0.0%
7.0%
0.0%

10% of administration expense

% of revenue

0%
5%
5%
0%
10%
10%
0%
20%
20%
0%
10%
10%
0%
10%
20%
0%

Operations Key

SMEDA

Cash Flow Assumptions

Description
Accounts receivable cycle (in days)

Quantity / Area

Accounts payable cycle (in days)

Cost / Rate

Amount / Other
30
7

Rationale
based on present and past years' revenue
bas ed on present and past years ' average CO GS, O p.
Costs (machinery maintenance), raw material inventory,
& s pare part inventory

Operations Key

SMEDA

Economy Related Assumptions

Description
Inflation rate
Electricity growth rate
Water price growth rate
Gas price growth rate
Wage growth rate
Office equipment price growth rate
Office vehicles price growth rate
Communication Expense
Transportation Cost
Marketing Exp.
Sales price growth rate
Capacity utilization
Growth in capacity
Maximum capacity
Currency
Pak Rs.
US $
Sterling
Japanese
Euro

Quantity / Area

50000

Rs. / US $
Rs. / Sterling
Rs. / Japanese
Rs. / Euro

Cost / Rate
Amount / Other
Rationale
8%
12%
12%
12%
12%
Pakistan economic survey
5%
20%
5% of Administrative cost
200,000 of material procure 3% of material procurement cost
200,000 per month
0.5% of Revenue
16%
60%
5%
90%
Exchange rate
Devaluation rate
Rationale
1.00
0.0%
100.92
-57.6% CAGR from 1994-95 to 1998-99
152.81
12.1% CAGR from 1994-95 to 1998-99
0.86
3.8% CAGR from 1994-95 to 1998-99
113.87
-57.6% assumed to be same as for US $

Italian Lire
Spainish Peseta
Austrian Schilling

Rs. / Italian Lire

Rs. / Spanish Peseta
Rs. / Austrian Schilling

16.99
1.46
9.00

8.2% CAGR from 1994-95 to 1998-99

7.2% CAGR from 1994-95 to 1998-99
7.1% CAGR from 1994-95 to 1998-99

Operations Key

SMEDA

Electricity, Water, Gas, & Telephone Details

Electricity
Commercial
Connection charges
Fixed minimum charges
Fixed minimum charges for above 10Kw (Rs/Kw)
Energy charges (Rs/Kwh)
FAS (Rs/Kwh)
Addition surcharge (Rs/Kwh)
Surcharge (% of energy charges)
Industrial
Connection charges (650 kVA)
Fixed minimum charges for first 20Kw
Fixed minimum charges for 20-40 Kw (
Fixed minimum charges (Rs/Kw)
Energy charges (Rs/Kwh)
FAS (Rs/Kwh)
Addition surcharge (Rs/Kwh)
Surcharge (% of energy charges)
Water
Description
Connection charges
Rate (Rs/cu.m.)

B1
upto 40 Kw

First 100 units

Above 100 units

323.10
32.31
2.34
0.81
3.73
11.2%
B2
41-500 Kw

323.10
32.31
2.41
0.81
3.84
11.2%
B3
501-5000 Kw
1,507,800

215.40
0.73
0.81
2.36
11.2%

312.33
0.72
0.81
1.55
11.2%

1.28
0.81
2.64
11.2%

Domestic

Commercial

Industrial

Gas
Description
Connection charges
Rate (Rs/cu.m.)

Domestic
5,385

Commercial
10,770

Industrial
10,770

Telephone
Description
Connection charges
Rate (Rs/unit)

Domestic
4,416

Commercial
###

Industrial
4,416

Domestic
4,416

Commercial
###

Fax
Description
Connection charges
Rate (Rs/unit)

B4
above 5000 Kw

75.39
96.93
301.56
0.66
0.81
1.43
11.2%

Industrial
4,416

Operations Key

SMEDA

Miscellaneous

Cash
Cashon
required
hand

Description
Cash on hand
Cash required for working capital needs

Starting cash
Cash to be maintained after startup
No. of Shifts per day
Hours operational / day for Factory per Shift
Hours operational / day for Showroom
Days operational / year
Months operational / year
Critical production figure
Denominator for statement summaries

Quantity / Area

Cost / Rate

Amount / Other
700,000
8,904,646
1
700,000
2.00
12
300
12
700,000
1

Rationale

To determine the caliber of personnel hired

To reduce length of numbers

Calculations

SMEDA

Rates
Year 0

Year 1

Inflation rate
Cumulative inflation rate
Sale price growth rate
Cumulative sale price growth rate
COGS growth rate
Cumulative COGS growth rate
Operation costs growth rate
Cumulative operation costs growth rate
Wage growth rate
Cumulative wage growth rate
Building rent growth rate
Cumulative
Machinery & equipment price growth rate
Cumulative
O. equip. price growth rate
Cumulative
O. vehicles price growth rate
Cumulative
Equipment spare part inventory (same M&E)
Cumulative
Raw material inventory price growth rate (same as C
Cumulative
Electricity price growth rate
Cumulative
Water price growth rate
Cumulative
Gas price growth rate
Cumulative
Export percentage
Exports growth rate
Accounts receivable cycle (in days)
Accounts payable cycle (in days)
Days operational / year

Year 2

Year 3

8%
8%
16%
16%
0%
0%
5%
5%
12%
12%
10%
10%
5%
10%
5%
10%
20%
44%
5%
10%
5%
10%
12%
12%
12%
12%
12%
12%
0%
0%
30
7
300

16%
0%
5%
12%
10%
5%

5%
5%
5%
5%
20%
20%
5%
5%
5%
5%
12%

5%
20%
5%
5%

12%
12%
0%
30
7
300

30
7
300

Year 4
8%
16%
16%
35%
0%
0%
5%
10%
12%
25%
10%
21%
5%
16%
5%
16%
20%
73%
5%
16%
5%
16%
12%
25%
12%
25%
12%
25%
0%
0%
30
7
300

Year 5

Year 6

8%
25%
16%
56%
0%
0%
5%
16%
12%
40%
10%
33%
5%
22%
5%
22%
20%
107%
5%
22%
5%
22%
12%
40%
12%
40%
12%
40%
0%
0%
30
7
300

8%
35%
16%
81%
0%
0%
5%
22%
12%
57%
10%
46%
5%
28%
5%
28%
20%
149%
5%
28%
5%
28%
12%
57%
12%
57%
12%
57%
0%
0%
30
7
300

Year 7

Year 8

8%
45%
16%
110%
0%
0%
5%
28%
12%
76%
10%
61%
5%
34%
5%
34%
20%
199%
5%
34%
5%
34%
12%
76%
12%
76%
12%
76%
0%
0%
30
7
300

Year 9

8%
56%
16%
144%
0%
0%
5%
34%
12%
97%
10%
77%
5%
41%
5%
41%
20%
258%
5%
41%
5%
41%
12%
97%
12%
97%
12%
97%
0%
0%
30
7
300

Year 10

8%
68%
16%
183%
0%
0%
5%
41%
12%
121%
10%
95%
5%
48%
5%
48%
20%
330%
5%
48%
5%
48%
12%
121%
12%
121%
12%
121%
0%
0%
30
7
300

8%
81%
16%
228%
0%
0%
5%
48%
12%
148%
10%
114%
5%
55%
5%
55%
20%
416%
5%
55%
5%
55%
12%
148%
12%
148%
12%
148%
0%
0%
30
7
300

Calculations

8%
95%
16%
280%
0%
0%
5%
55%
12%
177%
10%
136%
5%
63%
5%
63%
20%
519%
5%
63%
5%
63%
12%
177%
12%
177%
12%
177%
0%
0%
30
7
300

SMEDA

Project Costs
Year
0
Land for Factory
Building/Infrastructure for Factory
Machinery & equipment
Furniture & fixtures for Factory
Office vehicles
Office equipment for Factory
Pre-operating costs
Legal, Licensing, and Training costs
Total Capital Costs

Year
1
36,000,000
24,840,000
40,113,000
500,000
4,033,080
1,640,000
3,226,125
200,000
110,552,205

Year
2

Year
3

Year
4

Year
5

Year
6
-

Year
7

Year
8

Year
9

Year
10

2,093,102

Raw material inventory other than Wood

Raw material inventory
Upfront land lease rental for Factory
Upfront building rental for Factory
Upfront machinery & equipment lease rental
Upfront office equipment lease rental
Upfront office vehicles lease rental
Upfront insurance payment
Cash
Total Working Capital

12,000,000
282,316
700,000
12,982,316

WC to be financed through normal financing

WC to be financed through export refinance

12,982,316
-

Financing
Debt financing
Debt facility : Ban
Debt facility : Bank 2
Equity
Export re-financing

Year 0

Year 1

50%
80%
20%
50%

60%
40%

Leased assets purchase price

Machinery & equipment
Office equipment
Office vehicles

61,767,260
49,413,808
12,353,452
61,767,260
-

Year 0

Year 2

Year 3

Year 1
-

Year 2

Year 4
-

Year 3

Year 4
-

Year 5
Year 6
1,255,861
1,004,689
251,172
837,241
-

Year 5

Year 7

Year 6

Year 8

Year 9

Year 7

Year 8

Year 9

Year 10

Calculations

SMEDA

Projected Income Statement

Capacity Utilization

60%
Year 1
295,866,000

Revenue
Cost of sales
Raw Material Cost
Direct Labor (Production Staff)
Direct Electricity
Electricity from the Generator
Total cost of sales
Gross Profit

65%
Year 2
371,804,940

70%
75%
Year 3
Year 4
464,470,171
577,270,070

80%
85%
Year 5
Year 6
714,275,500
880,344,554

90%
Year 7
1,081,270,252

90%
90%
Year 8
Year 9
1,254,273,492
1,454,957,251

90%
Year 10
1,687,750,411

166,657,300
4,356,000
4,140,000
4,914,000
180,067,300
115,798,700

180,545,409
5,445,000
4,933,500
5,733,410
196,657,318
175,147,622

194,433,517
6,806,250
5,844,300
6,649,873
213,733,940
250,736,231

208,321,625
8,507,813
6,887,925
7,673,478
231,390,841
345,879,229

222,209,734
10,634,766
8,081,832
8,815,292
249,741,623
464,533,877

236,097,842
13,293,457
9,445,641
10,087,449
268,924,389
611,420,165

249,985,950
16,616,821
11,001,394
11,503,252
289,107,417
792,162,834

249,985,950
20,771,027
12,101,533
12,389,002
295,247,512
959,025,980

249,985,950
25,963,783
13,311,687
13,342,955
302,604,376
1,152,352,875

249,985,950
32,454,729
14,642,855
14,370,363
311,453,898
1,376,296,513

General administration & selling expenses

Administration expense
Electricity expense
Communications expense (phone, fax, mail, internet, etc.)
Transportation cost
Office expenses (stationary, entertainment, janitorial services, etc.)
Marketing expense
Insurance expense
Professional fees (legal, audit, consultants, etc.)
Repair & Maintenance Exp.
Depreciation expense
Amortization of pre-operating costs
Amortization of legal, licensing, and training costs
Misc. Exp.
Subtotal
Operating Income

6,492,000
300,000
324,600
2,400,000
1,200,000
2,400,000
282,316
1,200,000
6,034,608
322,612
20,000
600,000
21,576,136
94,222,564

8,115,000
336,000
405,750
2,640,000
1,320,000
2,640,000
254,084
1,320,000
6,034,608
322,612
20,000
660,000
24,068,055
151,079,567

10,143,750
376,320
507,188
2,904,000
1,452,000
2,904,000
225,852
1,452,000
6,034,608
322,612
20,000
726,000
27,068,330
223,667,901

12,679,688
421,478
633,984
3,194,400
1,597,200
3,194,400
197,621
1,597,200
6,034,608
322,612
20,000
798,600
30,691,792
315,187,437

15,849,609
472,056
792,480
3,513,840
1,756,920
3,513,840
169,389
1,756,920
6,034,608
322,612
20,000
878,460
35,080,736
429,453,141

19,812,012
528,703
990,601
3,865,224
1,932,612
3,865,224
141,158
1,932,612
6,125,228
322,612
20,000
966,306
40,502,291
570,917,873

24,765,015
592,147
1,238,251
4,251,746
2,125,873
4,251,746
112,926
2,125,873
6,125,228
322,612
20,000
1,062,937
46,994,355
745,168,479

30,956,268
663,204
1,547,813
4,676,921
2,338,461
4,676,921
84,695
2,338,461
6,125,228
322,612
20,000
1,169,230
54,919,815
904,106,164

38,695,335
742,789
1,934,767
5,144,613
2,572,307
5,144,613
56,463
2,572,307
6,125,228
322,612
20,000
1,286,153
64,617,188
1,087,735,687

48,369,169
831,924
2,418,458
5,659,074
2,829,537
5,659,074
28,232
2,829,537
6,125,228
322,612
20,000
1,414,769
76,507,616
1,299,788,897

Other income (interest on cash)

Earnings Before Interest & Taxes

94,222,564

151,079,567

223,667,901

315,187,437

430,109,141

570,917,873

745,168,479

904,106,164

1,087,735,687

1,299,788,897

Interest expense on long term debt (Debt facility : Bank 1)

Subtotal
Earnings Before Tax

4,937,571
6,193,432
88,029,132

4,492,244
#N/A
#N/A

3,852,174
#N/A
#N/A

3,148,146
#N/A
#N/A

2,474,161
#N/A
#N/A

1,622,407
#N/A
#N/A

676,488
#N/A
#N/A

78,323
#N/A
#N/A

64,009
#N/A
#N/A

48,264
#N/A
#N/A

Taxable earnings for the year

Tax
NET PROFIT/(LOSS) AFTER TAX

88,029,132
29,929,905
58,099,227

#N/A
#N/A
#N/A

58,099,227
#N/A
#N/A
#N/A

#N/A
#N/A
#N/A
#N/A

Balance brought forward

Total profit available for appropriation
Dividend
Balance carried forward

58,099,227
0%
58,099,227

Calculations

#N/A
#N/A
#N/A
#N/A

SMEDA

Projected Balance Sheet

Year 0

Year 1

Assets
Current assets
Cash & Bank
Accounts receivable
Finished goods inventory
Equipment spare part inventory
Raw material inventory
Total Current Assets

12,700,000

Year 2

12,982,316

3,795,354
14,793,300
15,005,608
43,747,541
77,595,888

Fixed assets
Land
Building/Infrastructure
Machinery & equipment
Furniture & fixtures
Office vehicles
Office equipment
Total Fixed Assets

36,000,000
24,840,000
40,113,000
500,000
4,033,080
1,640,000
107,126,080

36,000,000
23,598,000
36,101,700
450,000
3,629,772
1,312,000
101,091,472

Intangible assets
Pre-operation costs
Training costs
Total Intangible Assets
TOTAL ASSETS

3,226,125
200,000
3,426,125
123,534,521

2,903,512
180,000
3,083,512
181,770,872

Liabilities & Shareholders' Equity

Current liabilities
Accounts payable
Export re-finance facility
Short term debt
Other liabilities
Total Current Liabilities

Other liabilities
Deferred tax
Long term debt (Debt facility : Bank 1)
Total Long Term Liabilities

49,413,808
61,767,260

Shareholders' equity
Paid-up capital
Retained earnings
Total Equity
TOTAL CAPITAL AND LIABILITIES

61,767,260
123,534,521

61,767,260

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

Year 9

Year 10

#N/A
33,383,547
16,388,110
49,762,828
#N/A

#N/A
41,813,756
17,811,162
56,270,275
#N/A

#N/A
52,087,012
19,282,570
63,304,059
#N/A

#N/A
64,577,278
20,811,802
70,900,547
#N/A

#N/A
79,731,003
22,410,366
79,098,422
#N/A

#N/A
98,080,740
24,092,285
87,938,834
#N/A

#N/A
116,777,187
24,603,959
92,335,776
#N/A

#N/A
135,461,537
25,217,031
96,952,565
#N/A