Pre-Feasibility Report Working

8/8/2019 Pre-Feasibility Report Working

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ITEM COST (RS.)

Construction Office / Store 675,000

Construction Service Stations 850,000

Masonry Work 120,000

Mechanical Repairs Equipment 90,000

Denting Equipment 100,000

Painting Equipment 30,000Wheel Alignment Machine 1,000,000

Wheel Balancing Machine 650,000

High Pressure Cleaning Equipment 550,000

Piston Pump 250,000

Spare Parts Purchases 125,000

Lubricant Purchases 25,000

Advance Rent & Deposit 900,000

Working Capital 552,000

Pre Operating Costs 50,000

Office Furniture & Equipment 80,000

Total Cost 6,047,000


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Capacity Human Resource Equipmen

867 Cars / Month 5 (Management) Local / Eurpoean /

20 (Technical Staff) Chinese

Financial Summary

Project Cost IRR NPV Payback Period

6,047,000 33% Rs. 4,099,801 3 Years & 5 months


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Location

High Income

Locality

Cost of Capital

(WACC)

17.50%


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MECHANICAL REPAIRS & MAINTENANCE

Equipment Number Estimated Cost (Rs.)

Complete Mechanical Toolbox 2 26,000

Work Bench 2 5,000

Vice 2 9,000

Tool Box Cupboard 1 5,000

Voltmeter / Ammeter 2 5,000Timing Light 2 12,000

Battery Charger 1 7,000

Compression Gauge 1 6,000

Others - 15,000

Total 90,000

DENTING


Denting Toolbox 2 20,000

Mechanical Toolbox 1 13,000

Pressure Jack (Large) 1 30,000

Gas Cylinder 1 6,000

Carbide Tank 1 3,000

Welding Kits 2 6,000

Drill Machine (Hand) 2 3,000

Puller Jack 1 4,000

Others - 15,000

Total 100,000

PAINTING

Equipment Number

Painting Compressor (2 hp; 1k lbs) 1

Spray Gun (Small) 1

Spray Gun (Large) 1

Pipe 1

Others -

Total

HIGH PRESSURE CLEANINGEquipment Number

High Pressure Cleaner (incl.Piston Pump)

Piston Pump

Total

WHEEL ALIGNMENT & BALANCING



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Estimated Cost (Rs.

15,000

3,000

4,000

1,000

7,000

30,000

Estimated Cost (Rs.

1 550,000

1 250,000

800,000


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OFFICE FURNITURE

Item Number Estimated Cost (Rs.)

Table & Chair Set (Owner) 1 10,000

Table & Chair Set (Customer Service) 1 5,000

Air Conditioner (Split Unit) 1 30,000

Waiting Chairs 10 10,000

Sofa Set for Customers 1 15,000Curtains / Interior Dcor - 10,000

Total 80,000


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GENERAL MANAGEMENT

Designation / Type Number Monthly Salary (Rs.)

Owner 1 -

Accountant 1 2500 (10- 12 Hrs.)

Purchaser 1 5,000

Office Assistant / Store Keeper 1 2,500

Guard 1 2000 (Night Only)

JOB / DUTY ALLOCATION


Foreman 1 8,500

MECHANICAL REPAIRS & MAINTENANCE

Mechanics (Ustad) 2 12,000

Assistant Mechanics 2 8,000

Helpers 2 3,000

DENTING

Head Denter (Ustad) 1 8,000

Denters 2 12,000

Assistant Denter 1 4,000

Helper 1 2,000

PAINTING

Painter Ustad 1 8,000

Assistant Painters 2 10,000

Helper 1 2,000

Total 122,500

WHEEL ALIGNMENT & BALANCING


Operator (Incharge) 1 8,000

Assistant Operator 1 4,000

HIGH PRESSURE CLEANING

Cleaner (Incharge) 1 8,000

Assistant Cleaner 1 4,000

Total 4 24,000

16


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SERVICE GROSS MARGIN

Denting & Painting 29%

> Cosmetic Touchups 28%

> Accidental Repairs 29%

> Full Body Restoration 30%

Mechanical Repairs & Maintenance 25%

> Maintenance Services 33%

> Major Repairs 14%

Wheel Alignment & Balancing 90%

> Alignment 91%

> Balancing 89%

High Pressure Cleaning 79%

Overall 56%


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SERVICE MARGIN

Spare Parts 10.00%

Lubricants 12.50%

Subletting 25.00%


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MASONRY WORK FOR BAY AR

Item

Mechanical Work (Duct & Ramp)

Denting

Painting

Total

CONSTRUCTION COST FOR WHEEL ALIGNMENT / BALANCING & PR

Item

Wheel Alignment & Balancing

Ramp for Alignment

High Pressure Cleaning

Total


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AS

Bay Areas Estimated Cost (Rs.)

6 60,000

4 30,000

4 30,000

14 120,000

SSURE CLEANING

Estimated Cost (Rs.)

400,000

50,000

400,000

850,000


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UTILITY MONTHLY CHARGES (RS.)

Electricity 12,000

Water 10,000

Telephone 2,500

Entertainment 1,000

Total 25,500


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Particulars Rate

Required return on equity 20.00%

Cost of finance 15.00%

Weighted average cost of capital 17.50%


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Period

Per Year

Per Year

Per Year

Per Year

Per Year

Per Year

Per annum (Diminishing Balance)





Straight Line Per Year

Per annum

Income Tax on Salaried Individuals


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Item Revenue / Fee Charged (Rs.)

R

evenue

Denting & Painting 181,000

Cosmetic Touchup

(3 Piece Patching & 5,000 6 30,000

Paint)

Accidental Repairs 13,000 7 91,000

Full Body Restoration 30,000 2 60,000

Mechnical Repairs 190,000

General Repairs 1,500 100 150,000

Major Repairs 20,000 2 40,000

TOTAL 371,000

ASSUMPTIONS ASSU

Full Body Restoration % age of Revenue General Repairs

Spare Parts 10% Spare Parts

Subletting 10% Subletting

Lubricants 2.50% Lubricants

ASSUMPTIONS ASSU

Accidental Repairs % age of Revenue Major Repairs

Spare Parts 5% Spare Parts

Subletting 5% Subletting

Lubricants 1% Lubricants

F

ee

Charge

d

(

Rs.)

E

stima

ted

C

ars


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Cost of Sales (Rs.) Margin

(%)

M

ateria

l

L

abor

S

pare

Parts

L

ubrican

ts

S

ubletting

T

otalCos

t

132,271 27%

1,000 3283 - - - 25,698 14%

3,000 4,957 591 116 520 64,285 29%

6,000 9,350 2,727 667 2,400 42,288 30%

135,556 29%

- 247 614 67 84 101,130 33%

- 12,350 3,636 427 800 34,426 14%

267,827 28%

PTIONS

% age of Revenue

45%

7%

5%

PTIONS

% age of Revenue

20%

5%

2.50%


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MONTHLY REVENUE / COST SCHEDULE

Item Revenue / Fee Charged (Rs.)

Es

tima

tedCars

Revenue

Ma

teria

l

La

bor

Spare

Parts

Wheel Alignment / Balancing 125,000

Wheel Alignment 350 250 87,500 - 32 -

Wheel Balancing 150 250 37,500 - 16 -

High Pressure Cleaning 62,500

High Pressure Cleaning 250 250 62,500 20 48 -

TOTAL 187,500

Fee

Charged

(Rs.)


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Gross

Margin

(%)

Lu

brican

ts

Su

bletting

To

talCos

t

12,000 90%

- - 8,000 91%

- - 4,000 89%

17,000 73%

- - 17,000 73%

29,000 85%

(Rs.)


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Projected Income Statement (Rs.) Year1 Year2 Year3

Revenue 6,702,000 7,506,240 8,406,989

Denting & Painting 2,172,000 2,432,640 2,724,557

Genera l Repairs / Maintenance 2,280,000 2,553,600 2,860,032

Wheel Alignment & Balancing 1,500,000 1,680,000 1,881,600

High Pressure Cleaning 750,000 840,000 940,800

Net Sales ### ### ###

Cost of Sales ### ### ###

Gross Profit ### ### ###

Gross Profit Margin 46% 47% 48%

General Administrative & Selling Expenses

Salaries 144,000 158,400 174,240

Utilities Expense 306,000 336,600 370,260

Rent Expense 900,000 990,000 1,089,000

Office Misc. & Traveling Exp. 60,000 66,000 72,600

Amort. of Preliminary Expenses 10,000 10,000 10,000

Maintenance Expense 91,667 45,833 -

Depreciation Expense 567,833 529,383 494,778

Subtotal ### ### ###

Operating Income ### ### ###

Financial Charges(15%PerAnnum) 424,156 353,587 271,673

Earnings Before Taxes 636,414 ### ###

Tax 101,603 256,910 437,576Net Profit 534,810 841,404 ###

Monthly Profit After Tax 44,568 70,117 98,077


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Year4 Year5 Year6 Year7 Year8 Year9 Year10

9,415,827 10,545,727 11,811,214 13,228,560 14,815,987 16,593,905 18,585,174

3,051,504 3,417,684 3,827,806 4,287,143 4,801,600 5,377,792 6,023,127

3,203,236 3,587,624 4,018,139 4,500,316 5,040,354 5,645,196 6,322,620

2,107,392 2,360,279 2,643,513 2,960,734 3,316,022 3,713,945 4,159,618

1,053,696 1,180,140 1,321,756 1,480,367 1,658,011 1,856,972 2,079,809

### ### ### ### ### ### ###

### 5,215,022 5,736,524 6,310,176 6,941,194 7,635,313 8,398,844

### 5,330,705 6,074,690 6,918,383 7,874,793 8,958,592 ###

49% 50% 51% 52% 53% 53% 54%

191,664 210,830 231,913 255,105 280,615 308,677 339,544

407,286 448,015 492,816 542,098 596,307 655,938 721,532

1,197,900 1,317,690 1,449,459 1,594,405 1,753,845 1,929,230 2,122,153

79,860 87,846 96,631 106,294 116,923 128,615 141,477

10,000 10,000 - - - - -

100,833 50,417 - 110,917 55,458 - 122,008

481,967 453,937 428,710 426,172 405,738 387,348 392,980

### 2,578,735 2,699,529 3,034,990 3,208,888 3,409,808 3,839,694

### 2,751,970 3,375,161 3,883,393 4,665,905 5,548,784 6,346,635

176,591 66,224 - - - - -

### 2,685,746 3,375,161 3,883,393 4,665,905 5,548,784 6,346,635

582,579 812,511 1,053,806 1,231,688 1,505,567 1,814,574 2,093,822### 1,873,235 2,321,355 2,651,706 3,160,338 3,734,210 4,252,813

120,518 156,103 193,446 220,975 263,362 311,184 354,401


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Projected Balance Sheet (Rs.) Year 0 Year 1 Year 2 Year 3

Assets

Current Assets

Cash & Bank Balance 552,000 826,879 1,371,554 2,032,376

Accounts Receivable (Net) 0 83,775 93,828 105,087

Lubricants & S.Parts Inventory 150,000 165,000 181,500 199,650

Prepaid Rent 900,000 900,000 900,000 900,000Total Current Assets ### ### ### ###

Fixed Assets

Building & Workshop 1,645,000 1,480,500 1,332,450 1,199,205

Technical Equipment 220,000 198,000 178,200 160,380

Office Furniture 80,000 72,000 64,800 58,320

Machinery 2,200,000 1,851,667 1,519,833 1,202,850

Total Fixed Assets ### ### ### ###

Intangible Assets

Pre Operating Costs 50,000 40,000 30,000 20,000

Total Assets ### ### ### ###

Owner's Equity 3,023,500 3,258,310 3,799,714 4,576,640

Long Term Liability 3,023,500 2,584,510 2,074,951 1,483,478

Total Equity & Liabilities ### ### ### ###


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Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

2,146,430 3,100,595 4,960,684 6,328,771 8,595,775 11,162,954 13,266,437

117,698 131,822 147,640 165,357 185,200 207,424 232,315

219,615 241,577 265,734 292,308 321,538 353,692 389,061

900,000 900,000 900,000 900,000 900,000 900,000 900,000### ### ### ### ### ### ###

1,079,285 971,356 874,220 786,798 708,119 637,307 573,576

144,342 129,908 116,917 105,225 94,703 85,233 76,709

52,488 47,239 42,515 38,264 34,437 30,994 27,894

1,485,898 1,175,975 876,878 1,232,857 932,104 639,244 1,063,353

### ### ### ### 1,769,363 1,392,777 1,741,532

10,000 0 0 0 0 0 0

### ### ### ### ### ### ###

5,522,859 6,846,094 8,317,448 9,969,154 11,879,492 14,113,702 16,616,515

796,922 0 0 0 0 0 0

### ### ### ### ### ### ###


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Projected Statement of Cash Flows (Rs.) Year 0 Year 1 Year 2 Year 3

Cash Flow From Operating Activities

Net Profit 0 534,810 841,404 1,176,927

Add: Depreciation Expense 0 567,833 529,383 494,778

Amortization Expense 0 10,000 10,000 10,000

(Increase) / decrease in A/c Rec. -83,775 -10,053 -11,259

(Increase) / decrease in inventory -15,000 -16,500 -18,150

Net Cash Flow From Operations 0 1,013,869 1,354,234 1,652,295

Cash Flow From Financing Activities

Receipt of Long Term Debt 3,023,500

Repayment of Long Term Debt -438,990 -509,559 -591,473

Owner's Equity 3,023,500 -300,000 -300,000 -400,000

Net Cash Flow From Fin. Activities 6,047,000 -738,990 -809,559 -991,473

Cash Flow From Investing Activities

Capital Expenditure -1,645,000

Office Furniture -80,000

Technical Equipment -2,670,000

Lubricant & Parts Inventory -150,000

Preliminary Operating Expenses -50,000

Advance Rent -900,000

Net Cash Flow From Investing Activities -5,495,000 0 0 0

NET CASH FLOW 552,000 274,879 544,675 660,822

Cash at the Beginning of the Period 0 552,000 826,879 1,371,554

Cash at the End of the Period 552,000 826,879 1,371,554 2,032,376


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Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

1,446,218 1,873,235 2,321,355 2,651,706 3,160,338 3,734,210 4,252,813

481,967 453,937 428,710 426,172 405,738 387,348 392,980

10,000 10,000 0 0 0 0 0

-12,610 -14,124 -15,819 -17,717 -19,843 -22,224 -24,891

-19,965 -21,962 -24,158 -26,573 -29,231 -32,154 -35,369

1,905,610 2,301,087 2,710,088 3,033,588 3,517,003 4,067,180 4,585,532

-686,555 -796,922

-500,000 -550,000 -850,000 -1,000,000 -1,250,000 -1,500,000 -1,750,000

-1,186,555 -1,346,922 -850,000 -1,000,000 -1,250,000 -1,500,000 -1,750,000

-605,000 -665,500 -732,050

-605,000 0 0 -665,500 0 0 -732,050

114,055 954,165 1,860,088 1,368,088 2,267,003 2,567,180 2,103,482

2,032,376 2,146,430 3,100,595 4,960,684 6,328,771 8,595,775 11,162,954

2,146,430 3,100,595 4,960,684 6,328,771 8,595,775 11,162,954 13,266,437

Pre-Feasibility Report Working

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