Team ID: SYN-09-011

Team Name: Trail Blazers

Plan: Waste-to-Energy
Sector: Energy
 Table of Contents

1. Executive Summary.............................................................................................................................1
1.1. Objectives....................................................................................................................................2
1.2. Mission........................................................................................................................................2
1.3. Keys to Success...........................................................................................................................2
2. Company Summary.............................................................................................................................2
2.1. Company Ownership...................................................................................................................3
2.2. Start-up Summary........................................................................................................................3
2.3. Company Locations and Facilities...............................................................................................5
3. Products and Services..........................................................................................................................5
3.1. Product and Service Description.................................................................................................5
3.2. Competitive Comparison.............................................................................................................6
3.3. Sales Literature............................................................................................................................6
3.4. Fulfillment...................................................................................................................................6
3.5. Technology..................................................................................................................................7
3.6. Future Products and Services.......................................................................................................8
4. Market Analysis Summary..................................................................................................................8
4.1. Target Market Segment Strategy.................................................................................................9
4.1.1. Market Needs.....................................................................................................................10
4.1.2. Market Growth...................................................................................................................10
4.2. Service Business Analysis.........................................................................................................10
4.2.1. Business Participants.........................................................................................................11
4.2.2. Distributing a Service........................................................................................................11
4.2.3. Competition and Buying Patterns......................................................................................11
4.2.4. Main Competitors..............................................................................................................12
5. Strategy and Implementation Summary............................................................................................12
5.1. SWOT Analysis.........................................................................................................................12
5.1.1. Strengths............................................................................................................................13
5.1.2. Weaknesses........................................................................................................................13
5.1.3. Opportunities.....................................................................................................................13
5.1.4. Threats...............................................................................................................................13
5.2. Value Proposition......................................................................................................................14
5.3. Competitive Edge......................................................................................................................14
5.4. Marketing Strategy....................................................................................................................14
5.4.1. Positioning Statement........................................................................................................14
5.4.2. Pricing Strategy.................................................................................................................15
5.4.3. Promotion Strategy............................................................................................................15
5.4.4. Marketing Programs..........................................................................................................15
5.5. Sales Strategy.............................................................................................................................15
5.5.1. Sales Forecast....................................................................................................................15
6. Management Summary......................................................................................................................16
6.1. Management Team....................................................................................................................16
6.2. Management Team Gaps...........................................................................................................17
6.3. Personnel Plan...........................................................................................................................17
7. Financial Plan....................................................................................................................................19
7.1. Start-up Funding........................................................................................................................19
 Table of Contents

7.2. Break-even Analysis..................................................................................................................19

7.3. Projected Profit and Loss...........................................................................................................19
7.4. Projected Cash Flow..................................................................................................................19
7.5. Projected Balance Sheet............................................................................................................19
7.6. Business Ratios..........................................................................................................................20
8. Appendix............................................................................................................................................21

Table 1 - Start-up Costs.....................................................................................................................21

Table 2 - Market Analysis.................................................................................................................21
Table 3 - Sales Forcast.......................................................................................................................21
Table 4 - Personnel Plan....................................................................................................................22
Table 5 - Start-up Funding.................................................................................................................23
Table 6 - Break-even Analysis..........................................................................................................23
Table 7 - Profit and Loss Statement..................................................................................................24
Table 8 - Cash Flow Statement..........................................................................................................26
Table 9 - Balance Sheet.....................................................................................................................28
Table 10 - Ratio Analysis..................................................................................................................30

Table 1 - Start-up Costs.....................................................................................................................21

Table 2 - Market Analysis.................................................................................................................21
Table 3 - Sales Forcast.......................................................................................................................21
Table 4 - Personnel Plan....................................................................................................................22
Table 5 - Start-up Funding.................................................................................................................23
Table 6 - Break-even Analysis..........................................................................................................23
Table 7 - Profit and Loss Statement..................................................................................................24
Table 8 - Cash Flow Statement..........................................................................................................26
Table 9 - Balance Sheet.....................................................................................................................28
Table 10 - Ratio Analysis..................................................................................................................30
 Waste-to-Energy

1. Executive Summary

Pakistan is facing an electricity crisis as well as it lacks an operational waste management

system. Inadequate collection and disposal of waste poses a serious health risk to the
population and is an obvious cause of environmental degradation in all cities of Pakistan.
Mixed municipal solid waste is dumped either indiscriminately in the neighbourhood or, if
collected by a waste collection service, disposed of in uncontrolled dumpsites.

Maintaining and expanding energy services within Pakistan is crucial to the economic
growth of the country. A shortage of hundreds of megawatts of power has hit large parts of
Pakistan since the onset of the electricity crisis, causing riots and violence.

Athena Industries has the solution to overcome both these problems through its plasma
gasification plant. In the first phase Athena Industries will setup a waste management and
disposal system in the twin cities of Rawalpindi and Islamanad, which has a significant
generation of solid municipal waste. The plasma gasification process begins with the thermal
transformation of waste to produce a clean combustible gas referred to hereinafter as "Fuel
Gas". The Fuel Gas is used to produce electricity in a combined cycle gas/steam turbine.
Alternatively, the Fuel Gas can be used to produce ethanol (denatured ethyl alcohol), a fuel
that can either be blended with gasoline or burned in an engine as a neat fuel. Heat generated
by the process is used to produce electricity, superheat steam.

The technology for the patented Thermal Transformation process has been applied
commercially to a variety of materials including Municipal Solid Waste (MSW). The
developer of the process is a well-known and respected company. The process is designed
using guaranteed technologies.

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1.1. Objectives
• Create a socially responsible company producing clean energy for a better future.

• To be the leading waste management and disposal company of Pakistan by the year 2015.

1.1. Mission

"Athena is in the business of providing a safe, clean and green environment through our
efficient waste processing system producing electricity for a brighter today and a better
tomorrow."

1.2. Keys to Success

Athena's success is based on the following:

• Pakistan is facing an electricity crisis as well as it lacks an efficient waste

management system.

• Inadequate collection and disposal of waste poses a serious health risk to the
population and is an obvious cause of environmental degradation in all cities of
Pakistan.

• Pakistan's power sector is currently facing a shortage, which has created a huge gap
in the energy sector.

• There is a need in the market for energy at low costs.

Athena Industries has the solution to overcome these problems, by establishing the much
required efficient waste management and disposal system and then utilizing this MSW
(Municipal Solid Waste) in the production of clean energy. Athena Industry through its
efficient waste management and power generation system proposes a clean environment
for a healthier and better future, fulfilling the market demand of electricity and waste
management and disposal.

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1. Company Summary

Athena will be the first and foremost about resource efficiency. In these challenging
economic times, Athena has the potential to offer economic growth, job creation and
excellent investment opportunities, to solve real problems and cut costs. To be located in
Islamabad, the capital of Pakistan, Athena will provide the city with an efficient waste
disposal system and a waste mangement (collection) service to the twin city Rawalpindi,
along with low cost electricity generated by its plant that is to be built in the Industrial area
of Islamabad. Athena industries will be the leading provider of comprehensive waste and
environmental services in Pakistan. The company is strongly committed to a foundation of
financial strength, operating excellence and professionalism. Headquartered in Islamabad,
the company's network of operations will soon include collection operations, transfer
stations, active landfill disposal sites and waste-to-energy plants. These assets will enable
Athena to offer a full range of environmental services to millions of residential, industrial
and commercial customers. Athena Industries will work to make a positive difference for the
community in every aspect of its business.

1.1. Company Ownership

Athena will be a private joint-stock company which will be jointly owned by the five
founders and different individuals who will invest in the company and will receive
shares of stock in exchange for an investment in the company. The controlling shares
will be kept by the founders. Each share of common stock will entitle the owner to one
vote on decisions made by stockholders. Common stockholders will approve changes in
corporate policy, such as an amendment of the corporate charter and will share the
corporation's profits. Athena will distribute these profits to the stockholders in the form
of dividends or reinvest them in the corporation, thus increasing the value of the
shareholders' investment. Common stockholders will also elect the board of directors.
The board of directors will determine the basic corporate policy and select the top
officers of the corporation.

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1.2. Start-up Summary

Athena will require the following for starting up the business. A start-up table is attached
in the appendix.

• The legal cost for the company will amount to Rs 1,000,000 which will include
hiring of a lawyer and getting the company registered.

• The stationary costs will amount upto Rs 1, 00,000 which will include equipment
for documentation of the daily operations of the business.

• The insurance for the plant which costs Rs 640,000,000 will amount to Rs
1,000,000. These insurance amounts will not accomodate the total worth of the
technology.

• The start-up rent for first year operations of the plant will amount to Rs 720,000.

• The purchase of computers for the business will amount to Rs 500,000.

• The other expenses will amount to Rs 250,000. This will include the daily
transportation costs.

• The start-up cash required for the business will be Rs 10,000,000. This will
include the first year salaries of the employees and other expenses.

• The start-up inventories for Athena are Rs 40,880,000. Athena will not be
purchasing the inventories but will be rather charging the customers for their
waste disposal. An amount of Rs 140/ton will be charged for the disposal of
waste. This amount is for the disposal of 800 tons of waste generated daily in the
twin cities and is an annual figure.

• The other current assets for the business will include tables, chairs, clocks and
other furnishing equipment which will amount to Rs 1,000,000.

• The long-term assets of the business will include the technology purchased from
Westinghouse Plasma Corp., land, construction of building and other

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equipment. The technology will cost Rs 640,000,000 which will include the cost
of setting up the plasma torches and training of the employees. The land will cost
Rs 10,000,000. The cost of construction of building will cost Rs 80,000,000. The
other equipment will cost Rs 720,000,000. This will amount the total cost of
long-term assets upto Rs 892,000,000.

(Reference: Table 1- Start-up Costs)

1.1. Company Locations and Facilities

The proposed site for the plant is in Dhoke Haidri Koral, Islamabad. The total covered
area of the plant is according to initial design 96, 0000 sq/feet which inlcudes office
space of, the plasma gasification plant, store room, living quarters. The 32 acres of land
is owned by one individual, which will be acquired on lease renewable after 25 years
with an intial payment of Rs. 10 crores and monthly rent of amount Rs. 2 lac with 6%
increase per year.

2. Products and Services

Athena Industries will initially offer the following product and services:

• Electricity

• Waste management system (Collection and Disposal)

1.1. Product and Service Description

The main product of Athena industries is electricity. We will be producing 120MW of

electricity which will accomodate for the existing demand gap in energy sector. Athena
will be selling electricity to NTDC (National Transmission and Despatch Company).

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Athena industries is also providing with a service of waste collection and disposal.
Although Islamabad has an effective system of collection of waste but the waste
collected is not being disposed of in an effective manner. We will be charging Rs
140/ton for disposing of that waste by utilizing it in making our main product. For
Rawalpindi we will also be providing the facility of collection of waste material for
which we will be charging Rs 120/ton. The services Athena is providing will help in
making the environment clean.

1.2. Competitive Comparison

Athena will be the first of its kind in Pakistan providing products and services that have
a positive impact for the betterment of the society. Other IPPs (Independent Power
Producers) are producing electricity through consumption of limited natural resources at
a very high cost to the environment. In contrast to such established IPPs in Pakistan
Athena will use those elements from the society that are of no other use and have
become a cause of environmental degradation as well as a cause of hazards to the
citizens, to produce the much needed energy to support the community on its way to
prosperity. Furthermore, the high costs of the purchase of inventory (natural resources)
has driven the per unit production cost of electricity to an extent that even with a subsidy
of Rs 17/unit provided by the government of Pakistan electricity is still unaffordable for
much of the populace. Athena will bring down the cost of producing electricity by the
employement of the unique Plasma Gasification process to convert waste into energy.

1.3. Sales Literature

Athena is in the business of selling product and services both. Our main product is
electricity which will be generated by disposing of Solid Municipal Waste from the twin
cities. The electricity generation will fill the demand gap in the energy sector. The
second part of our business which is related to providing services will help in providing
the residents of the twin cities with a cleaner environment to live in. We intend to charge

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our clients for collection and disposing of their waste material in a way that will be
beneficial for them. We will use the waste material and treat it as an asset for our
company to accomodate for a better living of our clients.

1.4. Fulfillment

The daily waste generation in the twin cities of Islamabad is approximately 822 tons per
day. Athena will be providing two services, waste disposal and waste collection (if
required). Athena will be charging the cities of Rawalpindi and Islamabad an amout of
Rs 140 per ton for the disposal of waste and an additional amount of Rs 120 per ton for
collection where necessary. Hence, Athena will acquire the major raw material for
powering the plasma gasification plant not at a cost but will be charging the city
governments for their need of waste disposal. Through the processing of waste Athena
will be generating 120 MW (Mega Watts) of electricity out of which 20MW will be
utilized for the purpose of operating the facility and the surplus 100MW will be sold to
NTDC (National Transmission and Despatch Company) at Rs 20 KW/hour which is Rs
2 lesser than the IPPs (Independent Power Producers) are charging.

1.5. Technology

Plasma, often referred to as the "fourth state of matter", is the term given to a gas that
becomes ionized. An ionized gas is one where the atoms of the gas have lost one or more
electrons and have become electrically charged. The sun and lightning are examples of
plasma in nature. Man made Plasma is formed by passing an electrical discharge though
a gas such as air or oxygen. The interaction of the electric discharge and the process gas
causes the temperature of the gas to increase significantly often exceeding 5,500°C
(10,000°F), nearly as hot as the sun's surface. WPC's (Westinghouse Plasma
Corp.) plasma torches can be fed with process gases of widely varying chemical
composition including air, oxygen, nitrogen, argon and others. This flexibility allows
WPC to tailor the plasma torch system to best fit our needs. WPC's plasma technology

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can increase the energy of the process gas to between two to ten times higher than
conventional combustion. Gasification occurs when a carbon-containing feedstock is
exposed to elevated temperatures and/or pressures in the presence of controlled amounts
of oxygen. Syngas can be used as a fuel to generate electricity or steam or it can be used
as a basic chemical building block in the production of high value energy products such
as diesel or electricity.

The benefits of WPC plasma torches include:

• High reliability - over 500,000 hours in commercial operation

• Proven commercially in the world's largest plasma gasification facility

• Availability in a wide range of power inputs from 80 to 2,400 kW

• Power input can be quickly adjusted to match process requirements.

1.1. Future Products and Services

In the future following additional products and services will be provided:

• Waste solutions for various industries to cater their need of the disposal of
hazardous aswell as non-hazardous material.

• The plasma gasification process in the future will also be used for the generation
of additional productions such as ethanol and Hydrochloric acid which will be
sold at the market rates then applicable.

1. Market Analysis Summary

Pakistan with its fast growing population, waste removal is not just a nuisance, but an
increasingly real obstacle. The infrastructure for waste management is not as developed as it
is in industrialized countries such as the United States. Thus, in response to Pakistan's
industrialization, an infrastructure for waste management must be implemented. Secondly,

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developing nations need a wealth of energy in order to industrialize as quickly as the demand
requires. Also, in years of rapid growth, it is important to sustain the demand of energy that
momentum brings. For Pakistan energy consumption can be a huge restraint in determining
the country's overall rate of growth. With a waste-to-energy system, Pakistan could
potentially solve two of its major impediments at the same time. Creating a waste removal
system that produces environmentally friendly and domestically produced energy would
allow Pakistan to eliminate waste completely as opposed to burying it in landfills which is
what they currently do. Dumpsites (Landfills) are obviously a short term solution because
although Pakistan does possess a lot of barren land, there will eventually be a point of
saturation. With complete removal, landfill saturation will be less of a concern. Athena will
target the following markets:

○ NTDC (National Transmission and Despatch Company) for the sale of

electricity.

○ The twin cities for waste management and disposal service.

The demand of electricity in Pakistan is growing at a 6% rate and combined with the current
shortfall of 3000 MW (megawatts) makes the energy sector of Pakistan a very attractive
market. The twin cities of Islamabad and Rawalpindi lack waste disposal facilities and the
waste generation of both the cities is increasing at a rate of 11% per year.

(Reference Table 2: Market Analysis)

1.1. Target Market Segment Strategy

Athena has targeted Pakistan's energy sector (Electricity) for the following two reasons:

• Pakistan is currently facing a shortfall of 3000MW of electricity.

• There is a 6% growth in the demand of electricity per year.

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Because of these two reasons Pakistan's energy sector has become very attractive for
investments for private power producing companies. But becuase of the high cost of
acquiring the natural resources from which the electricity is currently being generated
the private investors are reluctant to invest, even in the presnece of surging demand.
Athena will succeed even under this stressfull market conditions because of its
determination of producing clean energy in a socially responsible way from MSW
(Municipal Solid Waste).

The other segment that Athena has targeted is the latent need in the market for effective
waste disposal at no or least cost to the environment. Pakistan is currently producing
more than 14000 tons of waste per day which even if collected is being dumped at
various planned and even unplanned locations. The majority of the planned dumpsites
are already saturated and the establishment of new dumpsites will be at a very high cost
to the environment. A number of unplanned waste dumpsites also exist in many parts of
the country which are becoming a cause of hazards for the citizens living in the
communities around the dumpsites. Athena will be effectively disposing off around 800
tons of waste per day in the first target market of Rawalpindi and Islamabad and will be
providing comprehensive waste management solutions.

1.1.1.Market Needs

All the cities of Pakistan lack a proper waste management system which includes
both collection and disposal. Government of Pakistan is the sole major entity
working in this regard and so far it has failed to provide positive results. There is
a current need in the market for a workable waste management system. Pakistan
is also suffering from electricity blackouts due to the shortfall in the electricity
production. Thus, Athena industries can successfully cater to the need in the
market by establishing a waste management system and also by providing low
cost electricity.

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1.1.2.Market Growth

As the population of the country increases the market size will also increase. The
population of Pakistan is growing at a rapid pace and as more and more people
are migrating towards the cities in search of jobs, education etc the amount of
waste produced by each city is also increasing with it. Pakistan is a huge market
in terms of Athena Industries waste to energy venture and the market size for the
products and services of our industry will grow substantially with time.

1.2. Service Business Analysis

Athena will be operating both in the energy sector of Pakistan and also in the market of
sanitation services (Waste collection and Disposal). The National Electrical Power
Regulatory Authority (NEPRA) determines the bulk supply tariff for the sale of
electricity. After the unbundling of the Water and Power Development Authority
(WAPDA), the NTDC (National Transmission and Despatch Company) buys electricity
from the independent power producers and sells it to the distribution companies at the
rate set by NEPRA. Athena's customer for the sale of electricity will be the NTDC.

The city of Islamabad has an efficient waste collection system but it lacks the capability
of disposing the MSW (Municipal Solid Waste) and on the other hand the city of
Rawalpindi with its not so efficient waste collection system is only able to collect 60%
of the waste produced daily and is also in the dire need of a waste disposal waste as the
current dumpsites are filling up quickly.

1.2.1.Business Participants

• IPPs (Independent Power Producers)

• Various private waste collectors such as "kachra walas" and "kabaris".

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1.1.1.Distributing a Service

Electricity will be sold directly to NTDC (National Transmission and Despatch

Company) who in turn will supply electricity on its own terns to IESCO
(Islamabad Electrical Supply Corporation). The transmission of electricity will be
controlled and measured by Athena's own grid station.

1.1.2.Competition and Buying Patterns

In the engergy sector Athena's major competition is with the other IPP's
(Independent Power Producers). Athena will offer the government of Pakistan
electricity at a much cheaper rate then what the other IPP's are charging. The 60
MW (Megawatts) of electricity produced by Athena will be sold to the NTDC at
the rate of Rs 20 per kWh as fixed charges, as compared to the electricity bought
from the other IPP's which is at a rate of Rs. 22 per KWh. Pakistan has a shortage
of 3000 MW of electricity and the demand is growing at a rate of 6% per annum,
therefore Athena will not find any considerable competition in the market of
electricity as long as no new company comes in the market offering electricity at
a cheaper rate then Athena.

In the market of sanitation Athena will be the first large scale waste disposal
company, although there are other small companies offering waste disposal
services but they operate on a very small scale (eg. waste disposal incinerators in
hospitals). The company will charge the cities of Islambad and Rawalpindi for the
disposal of the waste an amount of Rs.140 per ton and an additional Rs.120 per
ton for collection services if employed.

1.1.3.Main Competitors

The business Athena industries is of electricity generation. Therefore, our main

competitiors will be the IPPs (Independent Power Producers) operating in

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Pakistan. The main advantage they have is that they already have a fixed contract
with NTDC (National Transmission and Despatch Company) for purchase of their
electricity. Their main weakness is high cost of natural resources that are
emplyeed in the production of electricity. The process also leads to the generation
of elements that are harmful to the environment thus, having a negative impact on
our community. The cost incurred by the IPPs in the production of 1KW/hour of
electricity is approximately Rs 16 which is signifcantly more than Athena's cost
of producing electricity.

2. Strategy and Implementation Summary

2.1. SWOT Analysis

Waste management is basically an issue the local governments have not actively pursued
due to cost considerations and other more immediate issues in recent years. But it is
slowly becoming a larger issue with the expanding middle class and urbanization. This
cannot be ignored forever without an eventual environmental catastrophe and as
Pakistan is also suffering from an energy crisis, we believe that today represents a good
entry point for the waste-to-energy business in Pakistan.

Athena is a socially responsible company working for providing its clients and general
population with a better environment. We are generating electricity using waste material
and a technology which is proven to be environment friendly. The process of electricity
generation from waste material will also generate useful by-products such as ethanol,
super-heated steam and molten slag. The biggest weakness of Athena industries is that
the cost of importing and setting up the technology is very high. This cost includes
training of the employees and recruiting of trained employees for running the plant. The
opportunities for the business are that with the increase in the industrialization of the
coutry there will be an increase in the demand for electricity. Increase in population will
also increase the waste generated which will inevitably increase the inventory needed for

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electricity generation. With success in the twin cities Athena can also expand to other
metropolises of Pakistan.

2.1.1.Strengths

The following are the strengths of Athena:

• A socially responsible company.

• The employment of the plasma gasification process that results in fewer

greenhouse gasses.

• Potential sale of by products such as ethanol, superheated steam and molten

slag which is removed as vitrified by-product - safe for use as a construction
aggregate.

1.1.1.Weaknesses

Athena has the following weakness:

• As plasma gasification is a unique and relatively new technology it will be

difficult to train the employees and also to recruit trained labor in this field.

• The initial cost of setting up the plant is very high and it might be difficult to
find an investor.

1.1.1.Opportunities

Athena's opportunities are:

• Increasing demand of electricity.

• Increasing demand for waste disposal.

• Expansion to other metropolises of Pakistan.

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1.1.1.Threats

Athena faces the following threats:

• The cost of importing the plasma gasification technology increases

substabtially.

• Political instability, worsening law and order situation.

1.1. Value Proposition

We produce low cost electricity by the utilization of hazardous and non-hazardous waste
material to create a safe and prosperous environment.

1.2. Competitive Edge

We have a strong management with the ability to go the extra mile to achieve the
required goal. As we will be the market pioneers in the energy sector of Pakistan for
introducing and managing the waste-to-power technology effectively, it will give us a
competitive advantage in the energy sector for safe energy sources.

1.3. Marketing Strategy

Athena will be marketed as a socially responsible company working towards a better and
prosperous future. Investors will be made aware of the fact that Athena is not just a
business providing good returns on their investment; it will also provide the investors
with an opportunity to give something back to the community. Athena is a company
determined to make the environment cleaner and greener for the future generations,
along with ensuring the prosperity of all the stakeholders. Given the market conditions,
the surging prices and demand of electricity, the shortfall in supply and the latent need of
a large scale waste disposal facility, Athena's future is bright.

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1.3.1.Positioning Statement

For electricity distributing entity that is unable to fulfil the demand of the end
users, Athena Industries generates safe and low cost energy to meet the shortage
in the energy sector. Unlike the IPPs who generate electricity at a high
environmental cost Athena employees waste material for electricity production.

1.3.2.Pricing Strategy

All prices will be competitive and fair to the customer. Our revenue structure has
to match our cost structure, so the salaries we pay to assure good service and
support must be balanced by the revenue we charge.

1.3.3.Promotion Strategy

• Targeted Advertising: Will develop our positioning message: "For

electricity distributing entity that is unable to fulfil the demand of the end
users, Athena Industries generates safe and low cost energy to meet the
shortage in the energy sector."

• Internet: we will also develop a comprehensive website containing all the

information related to our business.

1.1.1.Marketing Programs

Our Vice President, Sales and Marketing will be responsible for targeted
advertising through the advertising channels. Our advertising budget is Rs
500,000 for the first year. Advertising will begin two weeks prior to opening.

1.2. Sales Strategy

• Our umbrella sales strategy is to sell electricity at low cost as compared to the
competitors.

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• We have to sell our service and support. We need to serve our customers with
what they really need which is a comprehensive waste management solution.

1.1.1.Sales Forecast

The annual sales of the company are Rs. 17520000000 which is generated from
the sales of 100 mega watt of electricity year around at a rate of Rs. 20 per kilo
watt/hour. The annual cost of sales which compny will going to incure is
around Rs. 7008000000. (Reference Table 3: Sales Forecast)

2. Management Summary

The management structure includes the following members who will be at the top
management positions:

○ CEO (Chief Executive Officer)

○ CFO (Chief Financial officer)

○ Vice President, Sales and Marketing

○ Vice President, Engineering

○ Vice President, Project Development

○ Vice President, Operations

○ Vice President, Strategic Alliance

1.1. Management Team

The Chief Financial Officer will be a graduate from a recognized university, having at
least two years experience in handling financial and corporate affairs of a listed
company.

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The Vice President, Sales and Marketing should have a masters degree in marketing and
five years of experience in a senior level sales or/and marketing position, experience in
planning marketing strategies, advertising campaigns and successful public relations
efforts.

The Vice President, Engineering should have five or more years experience in managing
technical personnel and complex activities. These experiences should be gained in the
areas of engineering and technical operations. He should also have and two or more
years of broad technical experience in the electrical, mechanical or power engineering
management.

The Vice President, Project development should have a development experience of at

least five years with a bachelor's degree (advanced degree preferable). The candidate
must have demonstrated success in meeting annual fund goals, development
management, grant writing, sponsorships and special events. He must also have
excellent communication skills both oral and written.

The Vice President, Operations should have a five years of progressive operational and
managerial experience with a bachelors degree or MBA degree (desirable). He should
also have a proven track record in management of company operations and quality
assurance.

1.2. Management Team Gaps

As the company is a start-up company and the technology is new we are unable to
acquire personnels who are skilled in the required areas. With the passage of time as the
company grows we will be able to hire more technically trained staff.

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1.3. Personnel Plan

The process of electricity generation will start from the collection of municipal solid
waste from the area. The team of a total strength of 104 employees will be responsible
for collection, transportation and disposal of solid waste at the project area. Out of the
104 there will be nine supervisors and six members of the support staff. The nine
supervisors will report to a Utilities and Solid Waste Management Director. The eighty
nine employees who will be directly involved in the task of waste collection,
transportation and disposal of waste will include twelve drivers. For operating the plant a
team of ten members will be made including a chief operator who will report directly to
the Vice president, operations. There will be nine operators working under the chief
operator. Internships for students of power engineering will also be offered and those
internees will work under the chief operator of the plant. The total staff of the waste
management and the plant operations will be 114 employees. The Adminstration will
consist of 28 members out of which 14 will be for general adminstration. The sales and
marketing depatment will have 6 members including the VP sales and marketing. The
remaining 8 members of the Adminstration will work in various other capacities.The
most important positions are of the members of the top management. There job
descriptions and salaries are as follows: (Please note that the company is a start-up and
there will be an increase in the salaries as the company grows.)

The Chief Financial Officer will be having at least two years experience in handling
financial and corporate affairs of a listed company. The salary for the Chief Operating
Officer will be Rs 50,000.

The Vice President, should have five years of experience in a senior level sales or/and
marketing position, experience in planning marketing strategies, advertising campaigns
and successful public relations efforts. The salary for Vice President, Sales and
Marketing will be Rs 45,000.

Page 1
 Waste-to-Energy

The Vice President, Engineering should have five or more years experience in managing
technical personnel and complex activities. These experiences should be gained in the
areas of engineering and technical operations. He should also have and two or more
years of broad technical experience in the electrical, mechanical or power engineering
management. The salary for Vice President, Engineering will be Rs 40,000.

The Vice President, Project development, the candidate must have demonstrated success
in meeting annual fund goals, development management, grant writing, sponsorships
and special events. He must also have excellent communication skills both oral and
written. The salary will be Rs 35,000.

The Vice President, Operations should have a five years of progressive operational and
managerial experience. He should also have a proven track record in management of
company operations and quality assurance. The salary will be Rs 30,000.

The Chief Operator should be a graduate in Power engineering from a listed university
and should technical experience in the related field. The salary of a Chief Operator will
be Rs 18,000.

The operators should have a diploma in power engineering, electrical engineering or

mechanical engineering. The salary will be Rs 10,000.

(Reference Table 4: Personnel Plan)

2. Financial Plan

2.1. Start-up Funding

The Total Investment of Rs. 947450000 has been made through investors who have been
offered a stake in the ownership of the company against the amount they have invested.
The controlling stock howver remains with the founders.

(Reference Table 5: Start-up Funding)

Page 1
 Waste-to-Energy

2.2. Break-even Analysis

The monthly revenue that company must require in order to break-even is 55,731,333.
This amount is required to manage the monthly expenses of the company which has
been incure to manage the entire necessary requirement. The company is earning that
amount pretty easily due to increase of electricity requirement.

(Reference Table 6: Break-even Analysis)

2.3. Projected Profit and Loss

The cost which will be incured for the production of enectricity is Rs. 739,952,000 and
the investerrs has decided the margin of Rs.49.32% will comes to Rs.720,048,000. The
organization has a pretiy impressive condition at the start of the business.

(Reference Table 7: Profit and loss statement)

2.4. Projected Cash Flow

The total spending of the company is Rs. 163,492,000. The total bill of the company is
Rs. 815,881,560. The net cash flow is Rs. 480,626,440.

(Reference Table 8: Cash flow statement)

2.5. Projected Balance Sheet

The total assets of the business at the end of the first year will amount to Rs
7,500,082,788 with Rs 892,000,000 worth of long-term assets and Rs 6,608,082,788
worth of short-term assets. The net worth at the end will be Rs 5,763,947,280.

(Reference Table 9: Balance Sheet)

2.6. Business Ratios

(Reference Table 10: Ratio Analysis)

Page 1
Waste-to-Energy

Page 3
 Appendix

3. Appendix
Start-up

Requirements Expenses

Start-up Expenses
Legal Rs.1,000,000
Stationery etc. Rs.100,000
Insurance Rs.1,000,000
Rent Rs.720,000
Computer Rs.500,000
Other Rs.250,000
Total Start-up Expenses Rs.3,570,000

Start-up Assets
Cash Required Rs.10,000,000
Start-up Inventory Rs.40,880,000
Other Current Assets Rs.1,000,000
Long-term Assets Rs.892,000,000
Total Assets Rs.943,880,000

Total Requirements Rs.947,450,000

Table 1 - Start-up Costs

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
NTDC 6% 1 1 1 1 1 0.00%
Waste disposal 11% 2 2 2 2 2 0.00%
Total 0.00% 3 3 3 3 3 0.00%
Sales Forecast
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Sales
Electricity 0 Rs.1,460,000,00 Rs.1,460,000,00 Rs.1,460,000,00 Rs.1,460,000,00 Rs.1,460,000,00 Rs.1,460,000,00 Rs.1,460,000,00 Rs.1,460,000,00 Rs.1,460,000,00 Rs.1,460,000,00 Rs.1,460,000,00 Rs.1,460,000,00
% 0 0 0 0 0 0 0 0 0 0 0 0
0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0
%
Total Sales Rs.1,460,000,00 Rs.1,460,000,00 Rs.1,460,000,00 Rs.1,460,000,00 Rs.1,460,000,00 Rs.1,460,000,00 Rs.1,460,000,00 Rs.1,460,000,00 Rs.1,460,000,00 Rs.1,460,000,00 Rs.1,460,000,00 Rs.1,460,000,00
0 0 0 0 0 0 0 0 0 0 0 0

Direct Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Cost of
Sales
Cost of Rs.584,000,000 Rs.584,000,000 Rs.584,000,000 Rs.584,000,000 Rs.584,000,000 Rs.584,000,000 Rs.584,000,000 Rs.584,000,000 Rs.584,000,000 Rs.584,000,000 Rs.584,000,000 Rs.584,000,000
Generatin
g
Electricity
Row 3 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0
Subtotal Rs.584,000,000 Rs.584,000,000 Rs.584,000,000 Rs.584,000,000 Rs.584,000,000 Rs.584,000,000 Rs.584,000,000 Rs.584,000,000 Rs.584,000,000 Rs.584,000,000 Rs.584,000,000 Rs.584,000,000
Direct
Cost of
Sales

Table 2 - Market Analysis

Page 4
 Appendix

Table 3 - Sales Forcast

Personnel Plan
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Operations
Personnel
People 114 114 114 114 114 114 114 114 114 114 114 114
Average per Rs.1,368,000 Rs.1,368,000 Rs.1,368,000 Rs.1,368,000 Rs.1,368,000 Rs.1,368,000 Rs.1,368,000 Rs.1,368,000 Rs.1,368,000 Rs.1,368,000 Rs.1,368,000 Rs.1,368,000
Person
Subtotal Rs.155,952,00 Rs.155,952,00 Rs.155,952,00 Rs.155,952,00 Rs.155,952,00 Rs.155,952,00 Rs.155,952,00 Rs.155,952,00 Rs.155,952,00 Rs.155,952,00 Rs.155,952,00 Rs.155,952,00
0 0 0 0 0 0 0 0 0 0 0 0

Sales and
Marketing
Personnel
People 6 6 6 6 6 6 6 6 6 6 6 6
Average per Rs.135,000 Rs.135,000 Rs.135,000 Rs.135,000 Rs.135,000 Rs.135,000 Rs.135,000 Rs.135,000 Rs.135,000 Rs.135,000 Rs.135,000 Rs.135,000
Person
Subtotal Rs.810,000 Rs.810,000 Rs.810,000 Rs.810,000 Rs.810,000 Rs.810,000 Rs.810,000 Rs.810,000 Rs.810,000 Rs.810,000 Rs.810,000 Rs.810,000

General and
Administrative
Personnel
People 14 14 14 14 14 14 14 14 14 14 14 14
Average per Rs.435,000 Rs.435,000 Rs.435,000 Rs.435,000 Rs.435,000 Rs.435,000 Rs.435,000 Rs.435,000 Rs.435,000 Rs.435,000 Rs.435,000 Rs.435,000
Person
Subtotal Rs.6,090,000 Rs.6,090,000 Rs.6,090,000 Rs.6,090,000 Rs.6,090,000 Rs.6,090,000 Rs.6,090,000 Rs.6,090,000 Rs.6,090,000 Rs.6,090,000 Rs.6,090,000 Rs.6,090,000

Other
Personnel
People 8 8 8 8 8 8 8 8 8 8 8 8
Average per Rs.80,000 Rs.80,000 Rs.80,000 Rs.80,000 Rs.80,000 Rs.80,000 Rs.80,000 Rs.80,000 Rs.80,000 Rs.80,000 Rs.80,000 Rs.80,000
Person
Subtotal Rs.640,000 Rs.640,000 Rs.640,000 Rs.640,000 Rs.640,000 Rs.640,000 Rs.640,000 Rs.640,000 Rs.640,000 Rs.640,000 Rs.640,000 Rs.640,000

Total People 142 142 142 142 142 142 142 142 142 142 142 142

Total Payroll Rs.163,492,00 Rs.163,492,00 Rs.163,492,00 Rs.163,492,00 Rs.163,492,00 Rs.163,492,00 Rs.163,492,00 Rs.163,492,00 Rs.163,492,00 Rs.163,492,00 Rs.163,492,00 Rs.163,492,00
Expenditures 0 0 0 0 0 0 0 0 0 0 0 0
Table 4 - Personnel Plan

Start-up Funding
Start-up Expenses to Fund Rs.3,570,000
Start-up Assets to Fund Rs.943,880,000
Total Funding Required Rs.947,450,000

Assets
Non-cash Assets from Start-up Rs.933,880,000
Cash Requirements from Start-up Rs.10,000,000
Additional Cash Raised Rs.0

Page 5
 Appendix

Cash Balance on Starting Date Rs.10,000,000

Total Assets Rs.943,880,000

Liabilities and Capital

Liabilities
Current Borrowing Rs.0
Long-term Liabilities Rs.0
Accounts Payable (Outstanding Bills) Rs.0
Other Current Liabilities (interest-free) Rs.947,450,000
Total Liabilities Rs.947,450,000

Capital

Planned Investment
Owner Rs.0
Investor Rs.0
Additional Investment Requirement Rs.0
Total Planned Investment Rs.0

Loss at Start-up (Start-up Expenses) (Rs.3,570,000)

Total Capital (Rs.3,570,000)

Total Capital and Liabilities Rs.943,880,000

Total Funding Rs.947,450,000

Table 5 - Start-up Funding

Break-even Analysis

Monthly Revenue Break-even Rs.55,731,333

Assumptions:
Average Percent Variable Cost 40%
Estimated Monthly Fixed Cost Rs.33,438,800
Table 6 - Break-even Analysis

Pro Forma Profit and Loss

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Sales Rs.1,460,000, Rs.1,460,000, Rs.1,460,000, Rs.1,460,000, Rs.1,460,000, Rs.1,460,000, Rs.1,460,000, Rs.1,460,000, Rs.1,460,000, Rs.1,460,000, Rs.1,460,000, Rs.1,460,000,
000 000 000 000 000 000 000 000 000 000 000 000
Direct Costs of Rs.584,000,00 Rs.584,000,00 Rs.584,000,00 Rs.584,000,00 Rs.584,000,00 Rs.584,000,00 Rs.584,000,00 Rs.584,000,00 Rs.584,000,00 Rs.584,000,00 Rs.584,000,00 Rs.584,000,00
Goods 0 0 0 0 0 0 0 0 0 0 0 0
Operations Payroll Rs.155,952,00 Rs.155,952,00 Rs.155,952,00 Rs.155,952,00 Rs.155,952,00 Rs.155,952,00 Rs.155,952,00 Rs.155,952,00 Rs.155,952,00 Rs.155,952,00 Rs.155,952,00 Rs.155,952,00
0 0 0 0 0 0 0 0 0 0 0 0
Page 6
 Appendix

Other Costs of Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0
Goods
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Cost of Goods Sold Rs.739,952,00 Rs.739,952,00 Rs.739,952,00 Rs.739,952,00 Rs.739,952,00 Rs.739,952,00 Rs.739,952,00 Rs.739,952,00 Rs.739,952,00 Rs.739,952,00 Rs.739,952,00 Rs.739,952,00
0 0 0 0 0 0 0 0 0 0 0 0

Gross Margin Rs.720,048,00 Rs.720,048,00 Rs.720,048,00 Rs.720,048,00 Rs.720,048,00 Rs.720,048,00 Rs.720,048,00 Rs.720,048,00 Rs.720,048,00 Rs.720,048,00 Rs.720,048,00 Rs.720,048,00
0 0 0 0 0 0 0 0 0 0 0 0
Gross Margin % 49.32% 49.32% 49.32% 49.32% 49.32% 49.32% 49.32% 49.32% 49.32% 49.32% 49.32% 49.32%

Operating
Expenses

Sales and
Marketing
Expenses
Sales and Rs.810,000 Rs.810,000 Rs.810,000 Rs.810,000 Rs.810,000 Rs.810,000 Rs.810,000 Rs.810,000 Rs.810,000 Rs.810,000 Rs.810,000 Rs.810,000
Marketing Payroll
Advertising/Promo Rs.41,667 Rs.41,667 Rs.41,667 Rs.41,667 Rs.41,667 Rs.41,667 Rs.41,667 Rs.41,667 Rs.41,667 Rs.41,667 Rs.41,667 Rs.41,667
tion
Other Sales and Rs.8,333 Rs.8,333 Rs.8,333 Rs.8,333 Rs.8,333 Rs.8,333 Rs.8,333 Rs.8,333 Rs.8,333 Rs.8,333 Rs.8,333 Rs.8,333
Marketing
Expenses
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Total Sales and Rs.860,000 Rs.860,000 Rs.860,000 Rs.860,000 Rs.860,000 Rs.860,000 Rs.860,000 Rs.860,000 Rs.860,000 Rs.860,000 Rs.860,000 Rs.860,000
Marketing
Expenses
Sales and 0.06% 0.06% 0.06% 0.06% 0.06% 0.06% 0.06% 0.06% 0.06% 0.06% 0.06% 0.06%
Marketing %

General and
Administrative
Expenses
General and Rs.6,090,000 Rs.6,090,000 Rs.6,090,000 Rs.6,090,000 Rs.6,090,000 Rs.6,090,000 Rs.6,090,000 Rs.6,090,000 Rs.6,090,000 Rs.6,090,000 Rs.6,090,000 Rs.6,090,000
Administrative
Payroll
Marketing/Promot Rs.41,667 Rs.41,667 Rs.41,667 Rs.41,667 Rs.41,667 Rs.41,667 Rs.41,667 Rs.41,667 Rs.41,667 Rs.41,667 Rs.41,667 Rs.41,667
ion
Depreciation Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0
Rent Rs.1,000,000 Rs.1,000,000 Rs.1,000,000 Rs.1,000,000 Rs.1,000,000 Rs.1,000,000 Rs.1,000,000 Rs.1,000,000 Rs.1,000,000 Rs.1,000,000 Rs.1,000,000 Rs.1,000,000
Utilities Rs.100,000 Rs.100,000 Rs.100,000 Rs.100,000 Rs.100,000 Rs.100,000 Rs.100,000 Rs.100,000 Rs.100,000 Rs.100,000 Rs.100,000 Rs.100,000
Insurance Rs.100,000 Rs.100,000 Rs.100,000 Rs.100,000 Rs.100,000 Rs.100,000 Rs.100,000 Rs.100,000 Rs.100,000 Rs.100,000 Rs.100,000 Rs.100,000
Payroll Taxes 15 Rs.24,523,800 Rs.24,523,800 Rs.24,523,800 Rs.24,523,800 Rs.24,523,800 Rs.24,523,800 Rs.24,523,800 Rs.24,523,800 Rs.24,523,800 Rs.24,523,800 Rs.24,523,800 Rs.24,523,800
%
Other General and Rs.83,333 Rs.83,333 Rs.83,333 Rs.83,333 Rs.83,333 Rs.83,333 Rs.83,333 Rs.83,333 Rs.83,333 Rs.83,333 Rs.83,333 Rs.83,333
Administrative
Expenses
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Total General and Rs.31,938,800 Rs.31,938,800 Rs.31,938,800 Rs.31,938,800 Rs.31,938,800 Rs.31,938,800 Rs.31,938,800 Rs.31,938,800 Rs.31,938,800 Rs.31,938,800 Rs.31,938,800 Rs.31,938,800
Administrative
Expenses
General and 2.19% 2.19% 2.19% 2.19% 2.19% 2.19% 2.19% 2.19% 2.19% 2.19% 2.19% 2.19%
Administrative %

Other Expenses:
Other Payroll Rs.640,000 Rs.640,000 Rs.640,000 Rs.640,000 Rs.640,000 Rs.640,000 Rs.640,000 Rs.640,000 Rs.640,000 Rs.640,000 Rs.640,000 Rs.640,000
Consultants Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0
Other Expenses Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0

Page 7
 Appendix

------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Total Other Rs.640,000 Rs.640,000 Rs.640,000 Rs.640,000 Rs.640,000 Rs.640,000 Rs.640,000 Rs.640,000 Rs.640,000 Rs.640,000 Rs.640,000 Rs.640,000
Expenses
Other % 0.04% 0.04% 0.04% 0.04% 0.04% 0.04% 0.04% 0.04% 0.04% 0.04% 0.04% 0.04%
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Total Operating Rs.33,438,800 Rs.33,438,800 Rs.33,438,800 Rs.33,438,800 Rs.33,438,800 Rs.33,438,800 Rs.33,438,800 Rs.33,438,800 Rs.33,438,800 Rs.33,438,800 Rs.33,438,800 Rs.33,438,800
Expenses

Profit Before Rs.686,609,20 Rs.686,609,20 Rs.686,609,20 Rs.686,609,20 Rs.686,609,20 Rs.686,609,20 Rs.686,609,20 Rs.686,609,20 Rs.686,609,20 Rs.686,609,20 Rs.686,609,20 Rs.686,609,20
Interest and Taxes 0 0 0 0 0 0 0 0 0 0 0 0
EBITDA Rs.686,609,20 Rs.686,609,20 Rs.686,609,20 Rs.686,609,20 Rs.686,609,20 Rs.686,609,20 Rs.686,609,20 Rs.686,609,20 Rs.686,609,20 Rs.686,609,20 Rs.686,609,20 Rs.686,609,20
0 0 0 0 0 0 0 0 0 0 0 0
Interest Expense Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0
Taxes Incurred Rs.205,982,76 Rs.205,982,76 Rs.205,982,76 Rs.205,982,76 Rs.205,982,76 Rs.205,982,76 Rs.205,982,76 Rs.205,982,76 Rs.205,982,76 Rs.205,982,76 Rs.205,982,76 Rs.205,982,76
0 0 0 0 0 0 0 0 0 0 0 0

Net Profit Rs.480,626,44 Rs.480,626,44 Rs.480,626,44 Rs.480,626,44 Rs.480,626,44 Rs.480,626,44 Rs.480,626,44 Rs.480,626,44 Rs.480,626,44 Rs.480,626,44 Rs.480,626,44 Rs.480,626,44
0 0 0 0 0 0 0 0 0 0 0 0
Net Profit/Sales 32.92% 32.92% 32.92% 32.92% 32.92% 32.92% 32.92% 32.92% 32.92% 32.92% 32.92% 32.92%
Table 7 - Profit and Loss Statement

Page 8
 Appendix

Pro Forma Cash Flow

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Cash
Received

Cash from
Operations
Cash Sales Rs.1,095,000,0 Rs.1,095,000,0 Rs.1,095,000,0 Rs.1,095,000,0 Rs.1,095,000,0 Rs.1,095,000,0 Rs.1,095,000,0 Rs.1,095,000,0 Rs.1,095,000,0 Rs.1,095,000,0 Rs.1,095,000,0 Rs.1,095,000,0
00 00 00 00 00 00 00 00 00 00 00 00
Cash from Rs.0 Rs.194,666,66 Rs.365,000,00 Rs.365,000,00 Rs.365,000,00 Rs.365,000,00 Rs.365,000,00 Rs.365,000,00 Rs.365,000,00 Rs.365,000,00 Rs.365,000,00 Rs.365,000,00
Receivable 7 0 0 0 0 0 0 0 0 0 0
s
Subtotal Rs.1,095,000,0 Rs.1,289,666,6 Rs.1,460,000,0 Rs.1,460,000,0 Rs.1,460,000,0 Rs.1,460,000,0 Rs.1,460,000,0 Rs.1,460,000,0 Rs.1,460,000,0 Rs.1,460,000,0 Rs.1,460,000,0 Rs.1,460,000,0
Cash from 00 67 00 00 00 00 00 00 00 00 00 00
Operations

Additional
Cash
Received
Sales Tax, 0.00 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0
VAT, %
HST/GST
Received
New Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0
Current
Borrowing
New Other Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0
Liabilities
(interest-
free)
New Long- Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0
term
Liabilities
Sales of Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0
Other
Current
Assets
Sales of Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0
Long-term
Assets
New Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0
Investment
Received
Subtotal Rs.1,095,000,0 Rs.1,289,666,6 Rs.1,460,000,0 Rs.1,460,000,0 Rs.1,460,000,0 Rs.1,460,000,0 Rs.1,460,000,0 Rs.1,460,000,0 Rs.1,460,000,0 Rs.1,460,000,0 Rs.1,460,000,0 Rs.1,460,000,0
Cash 00 67 00 00 00 00 00 00 00 00 00 00
Received

Expenditur Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
es

Expenditur
es from
Operations
Cash Rs.163,492,00 Rs.163,492,00 Rs.163,492,00 Rs.163,492,00 Rs.163,492,00 Rs.163,492,00 Rs.163,492,00 Rs.163,492,00 Rs.163,492,00 Rs.163,492,00 Rs.163,492,00 Rs.163,492,00
Page 9
 Appendix

Spending 0 0 0 0 0 0 0 0 0 0 0 0
Bill Rs.64,766,719 Rs.1,905,430,8 Rs.815,881,56 Rs.815,881,56 Rs.815,881,56 Rs.815,881,56 Rs.815,881,56 Rs.815,881,56 Rs.815,881,56 Rs.815,881,56 Rs.815,881,56 Rs.815,881,56
Payments 93 0 0 0 0 0 0 0 0 0 0
Subtotal Rs.228,258,71 Rs.2,068,922,8 Rs.979,373,56 Rs.979,373,56 Rs.979,373,56 Rs.979,373,56 Rs.979,373,56 Rs.979,373,56 Rs.979,373,56 Rs.979,373,56 Rs.979,373,56 Rs.979,373,56
Spent on 9 93 0 0 0 0 0 0 0 0 0 0
Operations

Additional
Cash Spent
Sales Tax, Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0
VAT,
HST/GST
Paid Out
Principal Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0
Repayment
of Current
Borrowing
Other Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0
Liabilities
Principal
Repayment
Long-term Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0
Liabilities
Principal
Repayment
Purchase Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0
Other
Current
Assets
Purchase Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0
Long-term
Assets
Dividends Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0
Subtotal Rs.228,258,71 Rs.2,068,922,8 Rs.979,373,56 Rs.979,373,56 Rs.979,373,56 Rs.979,373,56 Rs.979,373,56 Rs.979,373,56 Rs.979,373,56 Rs.979,373,56 Rs.979,373,56 Rs.979,373,56
Cash Spent 9 93 0 0 0 0 0 0 0 0 0 0

Net Cash Rs.866,741,28 (Rs.779,256,22 Rs.480,626,44 Rs.480,626,44 Rs.480,626,44 Rs.480,626,44 Rs.480,626,44 Rs.480,626,44 Rs.480,626,44 Rs.480,626,44 Rs.480,626,44 Rs.480,626,44
Flow 1 7) 0 0 0 0 0 0 0 0 0 0
Cash Rs.876,741,28 Rs.97,485,055 Rs.578,111,49 Rs.1,058,737,9 Rs.1,539,364,3 Rs.2,019,990,8 Rs.2,500,617,2 Rs.2,981,243,6 Rs.3,461,870,1 Rs.3,942,496,5 Rs.4,423,123,0 Rs.4,903,749,4
Balance 1 5 35 75 15 55 95 35 75 15 55
Table 8 - Cash Flow Statement

Page 10
 Appendix

Pro Forma Balance Sheet

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Assets Starting
Balances

Current
Assets
Cash Rs.10,000,0 Rs.876,741,28 Rs.97,485,055 Rs.578,111,49 Rs.1,058,737, Rs.1,539,364, Rs.2,019,990, Rs.2,500,617, Rs.2,981,243, Rs.3,461,870, Rs.3,942,496, Rs.4,423,123, Rs.4,903,749,
00 1 5 935 375 815 255 695 135 575 015 455
Accounts Rs.0 Rs.365,000,00 Rs.535,333,33 Rs.535,333,33 Rs.535,333,33 Rs.535,333,33 Rs.535,333,33 Rs.535,333,33 Rs.535,333,33 Rs.535,333,33 Rs.535,333,33 Rs.535,333,33 Rs.535,333,33
Receivable 0 3 3 3 3 3 3 3 3 3 3 3
Inventory Rs.40,880,0 Rs.1,168,000, Rs.1,168,000, Rs.1,168,000, Rs.1,168,000, Rs.1,168,000, Rs.1,168,000, Rs.1,168,000, Rs.1,168,000, Rs.1,168,000, Rs.1,168,000, Rs.1,168,000, Rs.1,168,000,
00 000 000 000 000 000 000 000 000 000 000 000 000
Other Rs.1,000,00 Rs.1,000,000 Rs.1,000,000 Rs.1,000,000 Rs.1,000,000 Rs.1,000,000 Rs.1,000,000 Rs.1,000,000 Rs.1,000,000 Rs.1,000,000 Rs.1,000,000 Rs.1,000,000 Rs.1,000,000
Current 0
Assets
Total Rs.51,880,0 Rs.2,410,741, Rs.1,801,818, Rs.2,282,444, Rs.2,763,071, Rs.3,243,697, Rs.3,724,324, Rs.4,204,950, Rs.4,685,577, Rs.5,166,203, Rs.5,646,829, Rs.6,127,456, Rs.6,608,082,
Current 00 281 388 828 268 708 148 588 028 468 908 348 788
Assets

Long-term
Assets
Long-term Rs.892,000, Rs.892,000,00 Rs.892,000,00 Rs.892,000,00 Rs.892,000,00 Rs.892,000,00 Rs.892,000,00 Rs.892,000,00 Rs.892,000,00 Rs.892,000,00 Rs.892,000,00 Rs.892,000,00 Rs.892,000,00
Assets 000 0 0 0 0 0 0 0 0 0 0 0 0
Accumulat Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0
ed
Depreciati
on
Total Rs.892,000, Rs.892,000,00 Rs.892,000,00 Rs.892,000,00 Rs.892,000,00 Rs.892,000,00 Rs.892,000,00 Rs.892,000,00 Rs.892,000,00 Rs.892,000,00 Rs.892,000,00 Rs.892,000,00 Rs.892,000,00
Long-term 000 0 0 0 0 0 0 0 0 0 0 0 0
Assets
Total Rs.943,880, Rs.3,302,741, Rs.2,693,818, Rs.3,174,444, Rs.3,655,071, Rs.4,135,697, Rs.4,616,324, Rs.5,096,950, Rs.5,577,577, Rs.6,058,203, Rs.6,538,829, Rs.7,019,456, Rs.7,500,082,
Assets 000 281 388 828 268 708 148 588 028 468 908 348 788

Liabilities Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
and
Capital

Current
Liabilities
Accounts Rs.0 Rs.1,878,234, Rs.788,685,50 Rs.788,685,50 Rs.788,685,50 Rs.788,685,50 Rs.788,685,50 Rs.788,685,50 Rs.788,685,50 Rs.788,685,50 Rs.788,685,50 Rs.788,685,50 Rs.788,685,50
Payable 841 8 8 8 8 8 8 8 8 8 8 8
Current Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0
Borrowing
Other Rs.947,450, Rs.947,450,00 Rs.947,450,00 Rs.947,450,00 Rs.947,450,00 Rs.947,450,00 Rs.947,450,00 Rs.947,450,00 Rs.947,450,00 Rs.947,450,00 Rs.947,450,00 Rs.947,450,00 Rs.947,450,00
Current 000 0 0 0 0 0 0 0 0 0 0 0 0
Liabilities
Subtotal Rs.947,450, Rs.2,825,684, Rs.1,736,135, Rs.1,736,135, Rs.1,736,135, Rs.1,736,135, Rs.1,736,135, Rs.1,736,135, Rs.1,736,135, Rs.1,736,135, Rs.1,736,135, Rs.1,736,135, Rs.1,736,135,
Current 000 841 508 508 508 508 508 508 508 508 508 508 508
Liabilities

Long-term Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0
Liabilities
Total Rs.947,450, Rs.2,825,684, Rs.1,736,135, Rs.1,736,135, Rs.1,736,135, Rs.1,736,135, Rs.1,736,135, Rs.1,736,135, Rs.1,736,135, Rs.1,736,135, Rs.1,736,135, Rs.1,736,135, Rs.1,736,135,
Page 11
 Appendix

Liabilities 000 841 508 508 508 508 508 508 508 508 508 508 508

Paid-in Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0
Capital
Retained (Rs.3,570,00 (Rs.3,570,000 (Rs.3,570,000 (Rs.3,570,000 (Rs.3,570,000 (Rs.3,570,000 (Rs.3,570,000 (Rs.3,570,000 (Rs.3,570,000 (Rs.3,570,000 (Rs.3,570,000 (Rs.3,570,000 (Rs.3,570,000
Earnings 0) ) ) ) ) ) ) ) ) ) ) ) )
Earnings Rs.0 Rs.480,626,44 Rs.961,252,88 Rs.1,441,879, Rs.1,922,505, Rs.2,403,132, Rs.2,883,758, Rs.3,364,385, Rs.3,845,011, Rs.4,325,637, Rs.4,806,264, Rs.5,286,890, Rs.5,767,517,
0 0 320 760 200 640 080 520 960 400 840 280
Total (Rs.3,570,00 Rs.477,056,44 Rs.957,682,88 Rs.1,438,309, Rs.1,918,935, Rs.2,399,562, Rs.2,880,188, Rs.3,360,815, Rs.3,841,441, Rs.4,322,067, Rs.4,802,694, Rs.5,283,320, Rs.5,763,947,
Capital 0) 0 0 320 760 200 640 080 520 960 400 840 280
Total Rs.943,880, Rs.3,302,741, Rs.2,693,818, Rs.3,174,444, Rs.3,655,071, Rs.4,135,697, Rs.4,616,324, Rs.5,096,950, Rs.5,577,577, Rs.6,058,203, Rs.6,538,829, Rs.7,019,456, Rs.7,500,082,
Liabilities 000 281 388 828 268 708 148 588 028 468 908 348 788
and
Capital

Net Worth (Rs.3,570,00 Rs.477,056,44 Rs.957,682,88 Rs.1,438,309, Rs.1,918,935, Rs.2,399,562, Rs.2,880,188, Rs.3,360,815, Rs.3,841,441, Rs.4,322,067, Rs.4,802,694, Rs.5,283,320, Rs.5,763,947,
0) 0 0 320 760 200 640 080 520 960 400 840 280
Table 9 - Balance Sheet
Ratio Analysis
Year 1 Year 2 Year 3 Year 4 Year 5 Industry
Profile
Sales Growth 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Percent of Total Assets

Accounts Receivable 7.14% 4.03% 2.81% 2.16% 1.75% 0.00%
Inventory 15.57% 8.79% 6.13% 4.71% 3.82% 0.00%
Other Current Assets 0.01% 0.01% 0.01% 0.00% 0.00% 100.00%
Total Current Assets 88.11% 93.28% 95.32% 96.41% 97.08% 100.00%
Long-term Assets 11.89% 6.72% 4.68% 3.59% 2.92% 0.00%
Total Assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Current Liabilities 23.15% 13.19% 9.20% 7.06% 5.73% 0.00%

Long-term Liabilities 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Total Liabilities 23.15% 13.19% 9.20% 7.06% 5.73% 0.00%
Net Worth 76.85% 86.81% 90.80% 92.94% 94.27% 100.00%

Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Gross Margin 49.32% 49.32% 49.32% 49.32% 49.32% 0.00%
Selling, General & Administrative 16.40% 16.40% 16.41% 16.41% 16.42% 0.00%
Expenses
Advertising Expenses 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Profit Before Interest and Taxes 47.03% 47.02% 47.02% 47.01% 47.00% 0.00%

Main Ratios
Current 3.81 7.07 10.36 13.65 16.94 0.00
Quick 3.13 6.41 9.70 12.98 16.27 0.00
Total Debt to Total Assets 23.15% 13.19% 9.20% 7.06% 5.73% 0.00%
Pre-tax Return on Net Worth 142.95% 71.45% 47.62% 35.71% 28.57% 0.00%
Pre-tax Return on Assets 109.86% 62.02% 43.24% 33.19% 26.93% 0.00%

Additional Ratios Year 1 Year 2 Year 3 Year 4 Year 5

Net Profit Margin 32.92% 32.92% 32.91% 32.91% 32.90% n.a
Return on Equity 100.06% 50.01% 33.34% 25.00% 20.00% n.a

Activity Ratios
Accounts Receivable Turnover 8.18 8.18 8.18 8.18 8.18 n.a
Collection Days 43 45 45 45 45 n.a
Page 12
 Appendix

Inventory Turnover 6.00 6.00 6.00 6.00 6.00 n.a

Accounts Payable Turnover 13.84 12.17 12.17 12.17 12.17 n.a
Payment Days 27 30 30 30 30 n.a
Total Asset Turnover 2.34 1.32 0.92 0.71 0.57 n.a

Debt Ratios
Debt to Net Worth 0.30 0.15 0.10 0.08 0.06 n.a
Current Liab. to Liab. 1.00 1.00 1.00 1.00 1.00 n.a

Liquidity Ratios
Net Working Capital Rs.4,871,947,28 Rs.10,638,834,56 Rs.16,404,867,84 Rs.22,169,919,72 Rs.27,933,853,56 n.a
0 0 0 0 0
Interest Coverage 0.00 0.00 0.00 0.00 0.00 n.a

Additional Ratios
Assets to Sales 0.43 0.76 1.09 1.42 1.75 n.a
Current Debt/Total Assets 23% 13% 9% 7% 6% n.a
Acid Test 2.83 6.10 9.39 12.68 15.97 n.a
Sales/Net Worth 3.04 1.52 1.01 0.76 0.61 n.a
Dividend Payout 0.00 0.00 0.00 0.00 0.00 n.a
Table 10 - Ratio Analysis

Page 13