Feasibility Report of MTS Solar power generation plant (pvt) Ltd. SUBMITTED TO:
Mr. JAVEED IQBAL
SUBMITTED BY: Sidra nor Aysha sahar Lubna malik
11 25 48
M.COM 4TH ( FINANCE) SESSION (2008-10)
DEPARTMENT OF COMMERCE
THE ISLAMIA UNIVERSITY OF BAHAWALPUR
We Dedicate our Project To our BELOVED PARENTS “ BELOVED
To our Honorable Teacher
“Mr.JAVEED IQBAL”
TABLE OF CONTENTS
Serial No.
Items
Page No.
1
Executive Summary
5
2
Main Body
8
2.1 Project Idea & Background of project
8
2.2 Opportunity Rationale
9
2.3 Project Parameters
9
2.4 Plant Capacity
10
2.5 Implementation
10
2.6 Geographical Level
10
2.7 Project Promoters
11
2.8 Corporate Setup
11
2.9 Project Capacity and Rationale
11
2.10 Key Success Factors
11
2.11 Strategic Recommendations
11
2.12 Industry Analysis
12
2.13 Production Process
14
2.14 Machinery Requirement
17
2.15 Human Resource Requirement
18
2.16 Project Parameters
19
3
Annexure
19
4
Site layout
37
Executive Summary 1.1
The Project.
1.2
Location
‘MTS’ Solar Power Generation Plant (Pvt) Ltd.
Bahawalpur Bahawalpur District.
1.3 Sponsors This project has been financed with the financial assistance of BOP. The equity contribution is made by MTS and Son’s.
1.4 Distance from District Headquarter
8 k-m
1.5 Access By Road
Bahawalpur – Hasilpur Road.
By Rail
Baghdad Railway station.
By Air
Bahawalpur Airport.
1.6 Telecommunication
Telecommunication Telecommunication facility is available.
1.7 Land
It is proposed to install 5MW on the land
admeasuring about 20 Acre. Acre.
1.8 Land Characteristics
Barren Land - Non Agricultural Land.
1.9 Type of Module Mounting Structure
Fixed Structures, Earth Mounted Grid Connected.
1.10 Type of PV Modules Considered for the offer
1.11 Proposed Capacity
‘Crystalline’
5 MWp
1.12 Material Requirement Sun light is the basic material for our project. And the ideal range of temperature is from 25’C to 30
1.13 Project Engineering All the machineries are purchased from China, Like Solar panels and invertors and all the remaining things are easily available at locally.
1.14 Manpower For this project there is the requirement of plant and administration staff which is easily available at local.
1.15 Implementation Stage The project will be completed in Six month. Its start date is 1-7-2010 and would be completed on 31-12-2010.And the commercial production is started in January 2011.
1.16 Project Parameters Cost of the project Fixed cost Net Working Working Capital Capital Total Cost
Rs.
766,197,000 9 25,000 25,000 767, 122,000
Financial Plan Bank loan 70% Equity 30% Total
Rs: 536,985,400 230,136,600 767,122,000
Operating Results 2011 (in ,000)
2012(in ,000)
2013(in ,000)
219000
232688
246375
191159
204265
217283
186355
198740
210927
109702
123661
137661
67100
75588
84101
2011
2012
2013
119727
196668
280425
55960
63287
70871
757472 524735
749847 510770
742222 494850
Sales
G. Profit
Op. Profit PBT Net Profit
Financial Position of the Company
Current Assets Current Liabilities Fixed assets Long term debt
1.9 Terms and Conditions
. •
Sponsor contribution will be 30%.
•
Land will be transferred to company name.
•
BOP will pledge land as security.
•
•
Final contract with material, machinery supplier and civil work need to show to BOP Loan is to be repaid in 10 Years.
2.1 Project Idea: BACKGROUND OF THE PROJECT
The Government of Pakistan’s (GOP) Renewable Energy Policy 2006 emphasizes the developm development ent of renewab renewable le and clean energy energy in the country. country. In fiscal fiscal year 2005-06, 2005-06, Pakistan’s consumption of energy generated through renewable energy (RE) sources stood stood at only 180-MW. 180-MW. Develop Development ment of the power generat generation ion potential potential of existing existing RE sources, solar, biogas, biomass, micro-hydel, and windmills, offers significant business opportunities for American manufacturers and exporters. Due to in-country depletion of convent conventiona ionall energy energy resource resources s and an expandin expanding g gap between between power power demand demand and supply, the development of RE sources in the country has gained force over the past 3-4 years. years. The The GO GOP P has has decid decided ed to enco encoura urage ge and and inves investt in the develo developme pment nt of the the infrastructure necessary for power generation through RE sources through its Alternate Energy Development Board (AEDB).
The goal is to have power generation from RE sources contribute approximately 10 percent of the country’ country’s s overall overall energy energy requirem requirements ents by 2015. 2015. American American companies companies already dominate the foreign-owned portion of the local RE power generation market with almost 25 percent of market share, followed by European European and Chinese companies, which have 10 percent and 5 percent of market share respectively. respectively. The remaining 60 percent of current RE power generation is in the hands of domestic companies. AEDB and the Pakistan Council of Renewable Energy Technologies (PCRET) are playing a major role in promoting the development of infrastructure for RE power generation in Pakistan.
Large multi-megawatt PV plants, approximately to 50 MW, are now in operation in the world. Solar Photovoltaic (PV) is known to be an important energy source for developing developing countr countries ies like like Pakis Pakistan tan.. Its import importan ance ce is now now being being realiz realized ed even even by devel develop oped ed countries in view view of its renewable renewable and environment environment friendly character. character. In our country also, optimum utilization of solar energy could not only lead to savings in conventional energ energy y but but also also resul resultt in many many indir indirect ect bene benefit fits. s. But But till till now now solar solar techn technolo ology gy is expensiv expensive e compared compared to other other technolo technology gy and significa significant nt financia financiall assistan assistance ce from government is needed to the developers and operators of new plants.
In view of this, the Ministry of New & Renewable Energy Sources has been promoting electrici electricity ty generation generation from Solar PV in Mega-Watt Mega-Watt level. These These projects projects are covered covered under the Grid Interactive Solar PV Power Generation Projects of Ministry of New & Renewable Energy Sources. The Ministry initiated the programme to establish as a viable and environment friendly electricity generation option.
2.2 Opportunity Rationale: Power generation from solar has many benefits which are as follows:
•
Power from the sun is clean, silent, limitless and free.
•
Photovoltaic process releases no CO2, SO2 or NO2 gases which are normally associated with burning finite fossil fuel reserves and don’t contribute to global warming.
•
Photovoltaic are now a proven technology which is inherently safe as opposed to other fossil fuel based electricity generating technologies.
•
No fuel is required for generation, so fuel cost of power generation is zero.
•
Increase the grid reliability i.e., voltage and frequency.
•
Solar Powered Grid Connect Plants can act as tail end energizers, which in turn reduces the transmission and distribution losses.
•
Provides a potential revenue source in a diverse energy range.
•
Assists in meeting renewable portfolio standards goal.
•
Generation of electricity from Solar PV is totally free of Green House Gas emission.
Market Entry Timing This is the best time to enter in the market because there is a short fall of electricity in the country, so presently it has a high demand.
2.3 Project Parameters Initial Capacity Human Resource Machinery Location
80% 28 Foreign (China) & Local (Advance electronics) Bahawalpur.
2.4 Plant Capacity: The propo propose sed d 5MWp 5MWp solar solar powe powerr plant plant proje project ct will will gene generat rate e electr electrici icity ty from from nonnonconventional conventional sources. The project will use “polycrystalline “polycrystalline”” technology for the first first time in the state for producing power power by solar energy. This project will generate safe, safe, reliable electricity in an environmentally environmentally friendly way.
2.5 Implementation: The project will be implemented as under: Loan sanctioned in July 2010. All formalities will be completed in July. Civil work would be made in 5 months. Machinery would be available and installed in 1 month. Trail Production would be started in December 2010. Commercial production would be started in January 2011.
2.6 Geographical Level: We are operating in Southern Punjab distt. Bahawalpur. This is the perfect choice for our project because here the weather conditions are good and ideal temperature for this project is 25’c which is available whole the year. And this city is situated near the Cholistan Desert.
Project Coverage: The project will impact positively to our economy while contributing in production in electricity industry which would increase our GDP. And it is beneficial for our city as well as our country because due to this plant we meet the demand and short fall of electricity in our city. It would would provide provide employment employment opportunity opportunity to the people which ultimate ultimately ly increase their living standard.
2.7 Project Promoters: Muhammad Tufail Sukhera and Son’s are well known businessman of this city and also they have a good knowledge of solar energy. And they are working on solar system for last 5 years. They initially promoted this project.
2.8 Corporate Setup: MTS solar power generation Pvt. Ltd will be a Private limited company. 30% of the cost will be provided by sponsors. MTS solar power generation Pvt. Ltd have best rational and technically equipped corporate managers which have the ability to run effectively and efficiently. 2.9 Project Capacity This This plant plant is instal installed led at 5MW. 5MW. This This solar solar powe powerr plant plant prod produce uces s 182500 18250000 00 Kwh electricity in a year at its full capacity. It can be computed as follows: (5000 Kw*10 hrs*365 days). 2.10 Key Success Factors
There is a high demand of this project in this city.
The use of solar energy is environment friendly.
It gives long term benefit.
Using solar energy is more beneficial for producing electricity as compare to produce electricity from hydel resources, because it takes less time to produce electricity
2.11 Strategic Recommendations Initially, the electricity is supply to the near by areas. The company will later expand into other cities through an agreement with WAPDA that we use their supply system or we sell our electricity directly to the house holds.
2.12 INDUSTRY ANALYSIS: As we analyze the industry, we see there is a huge demand of these kinds of projects at present and in future to fulfill the demand and supply gap of electricity in the country.
2.12.1 World Scenario It was estimated that in 2005, 2005 , 86% of primary energy production in the world came from burning burning fossil fossil fuels, fuels, with the remainin remaining g non-fos non-fossil sil sources sources being being hydroel hydroelectri ectric c 6.3%, nuclear 6.0%, and renewable energy sources, i.e. geothermal, solar, wind, biomass and wastes contributed only 0.9%. Some Leading Countries which are working on solar energy: •
France
•
China
•
Greece
•
America
•
Italy
•
European countries
•
India
2.12.2 Scenario in Pakistan For about a year now, Pakistan is facing the worst energy crisis of his history. If on one hand, the increase in the oil prices at the world level is severely affecting the common masses, on the other hand, the shortage of electricity is creating disorder in the country.
Beside others, one important reason that is advocated for this shortage is the rise in electricity demand due to increase in production as well as rise in household income. Pakistan covers 796,095 square kilometers of land between latitudes 24° and 36° north and longitudes 61° and 76° east. At present, it faces serious energy problems: 95 per cent of its electricity electricity generation generation comes from hydropowe hydropower r ,, which becomes less productive during the driest, hottest months of the year and cannot keep pace with the sharp rise in energy demand. Also, about 70 per cent of the populations live in some 50,000 villages dispersed around the country. Many of these villages are far from the main main transm transmiss ission ion lines lines of the the natio nationa nall grid grid and, and, becau because se of their their relati relativel vely y small small populations; it is usually not economically viable to connect these villages to the grid. Solar energy, energy , on the the other other hand hand,, has has excell excellen entt poten potentia tiall in areas areas of Pakis Pakistan tan that that receive high levels of solar radiation throughout the year. Every day, for example, the country receives an average of about 19 mega joules per square meter of solar energy. energy . Solar Solar energy energy systems systems have already already been develop developed ed and tested, tested, and they should now be adopted extensively as a way of supporting the economy of the country and improving the living standards of its people. Not only can solar systems meet basic needs of rural areas, but they can also reduce the pressure on conventional energy sources in urban areas, leaving more of these valuable resources for other domestic and industrial needs.
2.12.3 Current Industry Structure at Bahawalpur In Bahawalpur division, a lot of work is being done on solar projects and at present, there are two large projects are in pipe line that are, 1. Solar Solar power gener generation ation plant plant in Islami Islamia a Universi University ty BWP. 2.
A solar light set up is going to be installed in the Garrison park cantt BWP. BWP.
And now MTS & son’s are going to be started a 5MW solar power generation plant in BWP BWP city city to meet meet the the dema demand nd of elec electri trici city ty in this this city city.. Due Due to this this peop people le are are encouraged to set up industries in this city and also government of Pakistan will do someth somethin ing g in this this regard regards, s, becau because se gove governm rnmen entt supp support ort is need needed ed in this this kind kind of projects.
2.13 PRODUCTION PROCESS
Production Process Flow
How a PV System Works A PV array produces power when exposed to sunlight, a number of other components are required required to properly properly conduct, conduct, control, control, convert convert,, distribu distribute, te, and store the energy energy
produced by the array. Depending Depending on the functional and operational requirements requirements of the system, the specific components required, and may include major components such as a DC-AC power inverter, battery bank, system and battery controller, controller, auxiliary energy sources and sometimes the specified electrical load (appliances).
2.14
MACHINERY RE REQUIREMENT
Machinery Details,
• • •
2500 Solar panel (Poly crystalline) PV module of 200w each. 5000 Invertors (1 KVA) Cables and fixing structure and miscellaneous.
Solar Solar syste system m is purch purchas ased ed from from China China becaus because e we need need it in bulk bulk and and China China manufact manufactured ured high quality quality solar solar panels panels and all relevan relevantt materia material. l. And the other other remaining things are easily available at locally.
Reference: • • •
www.alibaba.com www.google.com Advance electronics electronics ( Mr. Afzal )
Cleaning and maintenance of Solar Panels In developed countries, Solar PV module Panels dust cleaning system is widely used in solar photovoltaic power station. Trees leaves, bird poop and airborne particles (from dirt and pollen) make solar panels dirty, dirty panels causes power loss. Dirt and waste reduce the ability of the solar array to perform at full capacity. The potential energy loss depends on the level of fifth accumulated on solar panels. Energy loss could reach 25 percent of gene generat rating ing powe power. r. Clean Cleaning ing system system for for solar solar pane panels ls will will improv improve e the photovo photovoltai ltaic c conversi conversion on rate, rate, keep keep the generation generation capacity capacity steady steady all over the year year capacity. Panels can ve cleaned either manually or mechanically.
In Mechanical cleaning system mainly, water sprinkler system is used, but it needs lot of power to spray water in wide module area, Manual system need manpower for cleaning. Though mechanical dust cleaning system are efficient than manual system. This solar PV plant manual cleaning is proposed because manual labor cost is less compared to total supplementary power cost. So, the maintenance and cleaning cost of solar panel is 1% of the cost of solar panels that is Rs: 2500000
2.15 HUMAN RESOURCE REQUIREMENT
PLANT MANAGER 2 NO
OPERATION MANAGER (5 NO.)
MAINTENANCE & ADMINISTRATION MANAGER (5 NO.)
ADMIN. STAFF (3 NOS.)
CONTROL ROOM TECHNICIAN (3 NOS. )
TECHNICIAN (3 NOS.)
TOTAL O&M STAFF = 28 NOS.
2.16 Estimated Cost of Project
ADMIN. STAFF (3 NOS.)
ELECTRICAL TECHNICIAN (4 NOS.)
Financial Plan Bank loan 70% Equity 30% Total
Rs: 536,985,400 230,136,600 767,122,000
All relevant Annexure of MTS solar power generation plant (pvt) Ltd Annexure-1 MTS SOLAR POWER PLANT Estimated cost of the Land Sr.No.
Description
Area in Acres
Unit cost (000)
Rs:("000") Total cost
Land
20
2500
50000
Registration & Legal Requirements 1% of cost of land
20
25
500
3
Stamp Duty 2% of cost of land
20
50
1000
4
District council fee 1% of cost of land
20
25
500
5
Capital Value tax is 4% of cost of land
20
100
2000
2700
54000
1 2
Total cost of land
Annexure- 2 MTS SOLAR POWER PLANT Estimated Cost of Civil Works Plinth
Sr.No: 1 2
Description Officer Residence
B.P
Area
1650 Sft
P.H
891
44
44
-
-
-
165 Rft
-
-
-
4950
932
44
44
-
-
-
-
495
-
-
-
-
-
-
-
864 Sft
827
44
1800 Sft
827
900 Sft
B/Wall
-
1650x10/100 = 165
E.I
Total
Amount (Rs:)
979/-
16,15,350/-
883/1020/
1,45,695/-
5x990 = 4950 3 4
B/Wall 4950x10/100 = 495
5
Solar Plant Room 36x24 = 864 Sft
-
50,49,000/
883/-
4,37,085/-
44
915
7,90,560/-
44
44
915
16,47,000/
827
44
44
915
8,23,500/-
-
-
-
2054 Sft
883
-
-
883
18,13,682/
54000/-
-
-
-
-
54,000/-
Control Buildings = 1800 Sft 6 Administration Buildings = 900 Sft 7 8
Boundary Wall
-
2054 Sft 9
Gate and Gate Pillars 1No -
-
-
-
-
-
12,375,872/-
10
Add Add 15% 15% Extern External al Develo Developm pmen entt road road Sewe Sewerag rage e etc 99,25 99,25,41 ,413/3/-
14,88 14,88,81 ,812/ 2/--
11
Add Add Wapda Wapda Conn Connec ectio tion n Transf Transform ormer er and and Straw Straw etc etc =
10,00 10,00,00 ,000/ 0/--
12
Contingency (5%)
743,234/Total cost of civil works
15,607,918/-
Annexure- 3 MTS SOLAR POWER PLANT Estimated Cost of Plant and Machinery Rs: ("000") Sr.No.
Description
Qty
Unit Cost
Rs: ("000") Total Cost
1
Solar panel (poly Crystaline-200w)
2500
100
250000
2
Invertors (1 KVA)
5000
60
300000
3
Cables/ Fixing structure
2500
40
100000
4
Contingency (1%)
-
-
6500
Inst Instal alla lati tion on & erec erecti tion on cost cost is incl includ uded ed in it. it.
-
-
-
Total Cost of Machinery
656500
Annexure- 4 MTS SOLAR POWER PLANT Pre-Production expenses
Sr. No.
Description
Rs. ("000")
1
Registration Charges
500
2
Sales Tax Registration Charges
300
3
Consultancy & Report Preparation Charges
200
4
Printing & Stationary
30
5
Conveyance Charges
40
6
Telephone & Postage
30
Total Pre-prodction Expenses
1100
Annexure- 5 MTS SOLAR POWER PLANT Estimated Cost of Project Rs:("000") Sr.No.
LCY (000)
Description
FCY
Total cost
1
Land
54,000
-
54,000
2
Building
15,608
-
15,608
3
Machinery
656,500
-
656,500
4
Furniture and Fixture
230
-
230
5
Office Equipment
170
-
170
6
Pre-operating expenses
1,100
-
1,100
7
Vehicle
1,000
-
1,000
8
Interest during construction @ 7%
-
-
37,589
Estimated fixed cost
-
-
766,197
Net Initial Net Working Capital
-
-
925
-
-
767,122
Add:
Total Estimated Cost of Project
Annexure- 5 (a) MTS SOLAR POWER PLANT Estimated cost of Furniture & Fixture Rs: ("000") Sr.No.
Description
1
Almirah
2 3
Qty
Rs: ("000")
Unit Cost
Total Cost
5
20
100
Tables
10
10
100
Chairs
30
1
30
Total
-
-
230
Annexure- 5 (b) MTS SOLAR POWER PLANT Estimated cost of Vehicle
Rs: ("000") Sr.No. 1
Description
Qty
Rs: ("000")
Unit Cost
Sheroz Pick up
1
Total
Total Cost
1000
-
-
1000 1000
Annexure- 5 (c) MTS SOLAR POWER PLANT Estimated cost of office equipment
Rs: ("000") Sr.No.
Description
Qty
Rs: ("000")
Unit Cost
Total Cost
1
Computer
5
20
100
2
Printer
2
10
20
3
Type writer
2
10
20
4
Charger controller
2
15
30
Total
-
-
170
Annexure- 6
MTS SOLAR POWER PLANT Initial Net Working Capital Requirement Descriptions
A.
Rs. "000"
Current Assets:
1
Advances, & Prepayments
350
2
Stores & Spares
300
3
Cash and bank balance
500
Total Current Assets B. 1
1150
Current liabilities: Less: Bank borrowing 75% of stores & spares
225
Initial Net Working Capital
925
Annexure- 7 MTS SOLAR POWER PLANT Depreciation Schedule of Fixed Assets Rs. ("000") Sr. No.
Description
1
Plant & Machinery @1%
2
Building @ 5%
3
T.Cost Rs.
Dep.
656,500
6565
15,608
780
Furniture & Fixture @ 20%
230
46
4
Office Equipment @ 20%
170
34
5
Vehicles @ 20%
1,000
200
673,508
7,625
Total
Note: - Depreciation will be constant over the life of assets.
Annexure- 8
MTS SOLAR POWER PLANT Manufacturing Overhead Cost
Rs ("000") Fixed Cost:
Depreciation
7,625
Insurance @ 2% of the solar system and spare parts
13006
650300*2%=13006 Maintenance :
Maintenance of solar pv module @ 1% of cost of solar panel
2500
Maintenance of Building @ 5% of Cost of Building
780
Maintenance of Vehicles @ 5% of Cost of Vehicles
50
Total Fixed Cost
23,961
Year ending Manufacturing Overheads as per Different Capacities: Years 2011 Description
2012
2013
Rupees ("000") 80%
85%
90%
Fixed Cost
23,961
23,961
23,961
Total Cost of Manufacturing Overheads
23,961
23,961
23,961
Annexure- 9
MTS SOLAR POWER PLANT Sales Revenue
Description
(A)
Rupees (000)
Unit price per Kwh
5 MW solar power plant produce 18250000 Kwh
RS: 15
electricity in a year at its full capacity. That is computed as (5000 Kw*10 hrs*365 days)
Total Sales
80%
85%
90%
2011
2012
2013
219000
232688
246375
-
-
-
-
-
-
-
-
-
-
-
-
-
219000
232688
246375
Assumptions: 1. Tariff rate is fixed for 20 years.
Annexure- 10 MTS SOLAR POWER PLANT Estimated income Statement
Rupees (000) Year ending December 31:
sales
80%
85%
90%
2011
2012
2012
219000
232688
246375
Less: cost of sales:Raw material Labor
-
-
-
3880
4462
5131
Manufacturing Overhead
23,961
23,961
23,961
Cost of sales
27,841
28,423
29,092
Gross profit
191159
204265
217283
Administrative expenses
3209
3690
4245
General expenses
1595
1835
2111
Total operating expenses
4804
5525
6356
186355
198740
210927
75178
73463
71508
Operating expenses:
Operating profit Other expenses: Financial charges on: Long term loan @ 14% Bank borrowing
-
Amortization of pre-production expenses
-
-
367
367
367
Total other expenses
75545
73830
71875
Profit Before Tax and Worker's Fund
110810
124910
139052
1108
1249
1391
Profit/(Loss) Before Tax
109702
123661
137661
Tax provision @ 40%
42602
48073
53560
Net Profit
67100
75588
84101
Worker's fund @ 1%
Annexure- 11 MTS SOLAR POWER PLANT Balance Sheet
End of Const. 2,010
Year ending Dec 31 Assets: Current Assets: Cash and Bank Balance Short term investment
275 -
Operating Years 2,011 RS: (000)
2,012
2,013
71556 47,521
96729 99289
126568 153207
Stores & Spares
300
300
300
300
Advances and Prepayments
350
350
350
350
925
119,727
196,668
280,425
765,097
765,097
765,097
765,097
765,097
7625 757,472
15,250 749,847
22,875 742,222
1100 767,122
733 877,932
367 946,882
Total current assets Fixed Assets: Fixed Assets at cost Less: accumulated Depriciation Fixed Assets Net
-
Intangibles Total Assets Current Liabilities: Liabilities:
1,022,647
Taxes payables
-
42602
48073
53560
Worker's Fund payable Current Maturity of Long term debt
-
1108
1249
1391
-
12,250
13,965
15920
Total Current Liabilities Long Term Debts: BOP Loan Total Long Term Debt Equity: Capital
-
55,960
63,287
70,871
536,985 536,985
524,735 524,735
510,770 510,770
494,850 494,850
230,137
230,137
230,137
230,137
Retained Earnings Total Equity
230,137
67100 297,237
142688 372,825
226789 456,926
767,122
877,932
946,882
1,022,647
Total Debt and Equity
Annexure- 12 MTS SOLAR POWER PLANT Cash Flow Statement
End of Construction 2,010
Years Ending Dec 31 Sources of Funds
Operating Years 2,011 2,012 2,013 Rs 000 Rs 000 Rs 000
Operating profit
-
18 186,355
198,740
210,927
Add: Depreciation
-
7625
7625
7625
Total funds from operation Other sources:
-
19 193,980
206,365
218,552
BOP Loan
536,985
Paid-Up Capital Total sources of funds Application of funds
230,137 767,122
Investment in Fixed Assets
727,508
-
-
-
1100
-
-
-
37,589
-
-
-
Preproduction expenses Interest During Const. Repayment of : BOP Loan Financial Charges on:
-
Long Term loans Payment of :
Worker's Fund Increase in current asset (other than cash)
193,980
-
-
Taxes
-
75178
206,365
218,552
12,250
13,965
73463
71508
-
-
42602
48073
-
-
1108
1249
650
-
Short term investments Total Applications Cash Surplus
766,847 275
47, 521 122,699 71,281
Cash at Beginning of Year Cash at end of Year
275
275 71,556
-
-
51, 769 181,192 25,173
53, 918 188,713 29,839
71556 96,729
96729 126,568
Annexure- 13 MTS SOLAR POWER PLANT Administrative expenses
Rs: (000) Sr.No
No. of Employees
Designation
Salary/Month
Annual Salary
Rupees(''000'') 1
Managing Director
2
50
1200
2
Accountant
3
15
540
3
Clerk
2
12
288
4
Chowkider
2
6
144
5
Peon/sweeper
2
5
120
Add:
-
-
-
Total
11
88
Fringe Benefits @ 40%
-
-
2292 917
Total Cost of Administrative Staff
3209
Year Wise Administrative Salaries:
Rupees(''000'') Sr.No 1 2 3 4 5
Description Managing Director Accountant Clerk Chowkider Peon/Sweeper
No. of Employees
Total Add: Fringe Benefits @ 40% Total Administrative Salaries per Year
2 3 2 2 2 11 -
2011 1200 540 288 144 120 2292 917 3209
Assumptions:
Administrative salaries will increase 15% every year.
General Expenses
2012 1380 621 331 166 138 2636 1054 3690
2013 1587 714 381 191 159 3032 1213 4245
Sr.No
Description
Year Exp.(''000'')
1
Travelling Expenses
200
2
Printing &stationary
70
3
Telephone,Telex,Postage
500
4
Rent, Rates and Taxes
400
5
Entertainment
50
6
Legal & Audit
175
7
Miscellaneous
200
Total
1595
General Expenses:
Sr.No
Description
Rupees(''000'')
1
Travelling Expenses
200
230
265
2
Printing &stationary
70
81
93
3
Telephone,Telex,Postage
500
575
661
4
Rent, Rates and Taxes
400
460
529
5
Entertainment
50
58
67
6
Legal & Audit
175
201
231
7
Miscellaneous
200
230
265
1595
1835
2111
Total
Annexure- 14 MTS SOLAR POWER PLANT Estimated labor cost
Assumptions: 1. Direct labor will increase every year @ 15% Labor cost
Rs: (000)
Sr.No 1 2 3 4
No. of Empl Employ oyee ees s 2 5 3 7 17
Description Plant Manager Operation Manager Control room Technician Electric Technicians Total
Total Annual Sala Salary ry/M /Mon onth th/W /Wor orke ker r Salary 20 480 18 1080 10 360 9 756 57 2676
Add: Fringe Benefit (45% of basic salary)
1204 Total Cost of Plant Labor
3880
Year wise wages of Labor: Years Sr.No
Description
2011
2012
2013
Rs(''000'') 1
Plant labor
3880
4462
5131
Total cost of labor
3880
4462
5131
Annexure- 15 MTS SOLAR POWER PLANT BREAK-EVEN ANALYSIS
Commercial Break-even in the first Operating Year:
Sales from Operations:
219,000
( At 80% Capacity )
Items
Variable Cost
Labor
( Rs. In '000' ) Fixed Cost
3,880
Manufacturing Overheads
-
-
Administrative & General Expenses
23,961
4,804
4,804
75,178
75,178
367
367
104,310
108,190
-
Amortization of pre-production expenses Total:
3,880
3,880
23,961
-
Interest / Mark-Up Expenses
Total Cost
104,310 Break-Even Point:
219,000
Break-Even Point:
-
39%
3,880
X 80%
Commercial Break-even in the third Operating Year: ( At 90% Capacity ) Variable Cost
Items
Labor
(Rs. In '000' ) Fixed Cost
5,131
Manufacturing Overheads
-
-
Administrative & General Expenses
-
Interest / Mark-Up Expenses
-
Worker's Participation Fund
1,391
Debt Payment
-
Tax
Total:
6,522
Sales from Operations:
Total Cost
5,131
23,961
23,961
6,356
6,356
71,508
71,508
13,96 5
1,391 13,965
53,560
53,560
169,350
175,872
246,375
169,350 Break-Even Point:
Break-Even Point:
246,375
-
6,522
63.54%
X 90%
Annexure-16 MTS Solar Power plant (Pvt) Ltd. Calculation of Internal Financial Rate of Return
Years
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Capital Outlay
Operating Profit Depreciation
766,847 1,400 1,400 1400 -
186,355 198,740 210,927 210,927 210,927 210,927 210,927 210,927 210,927 210,927 210,927 210,927 210,927 210,927 210,927 210,927 210,927 210,927 210,927 210,927
7,625 7,625 7,625 7,625 7,625 7,625 7,625 7,625 7,625 7,625 7,625 7,625 7,625 7,625 7,625 7,625 7,625 7,625 7,625 7,625
Worker's Fund
Taxes
1,108 1,249 1,391 1,391 1,391 1,391 1,391 1,391 1,391 1,391 1,391 1,391 1,391 1,391 1,391 1,391 1,391 1,391 2,782
42,602 48,073 53,560 53,560 53,560 53,560 53,560 53,560 53,560 53,560 53,560 53,560 53,560 53,560 53,560 53,560 53,560 53,560 107,120
Net Cash Return
193,980 162,655 169,230 163,601 163,601 163,601 163,601 163,601 163,601 163,601 163,601 163,601 163,601 163,601 163,601 163,601 163,601 163,601 163,601
IFRR Assumptions:Calculation of IFRR for the project has been carried out under the following assumptions:-
1. The economic life of the project would be 20 years .
Net Cash Inflow (Outflow) ( 766,847 ) 193,980 162,655 169,230 163,601 163,601 162,201 163,601 163,601 163,601 163,601 162,201 163,601 163,601 163,601 163,601 162201 163601 163601 163601
2. The entire capital outlay would be incurred one year prior to the Commencement of commercial operations. operations.
3. Motor Vehicles and operating equipment would be replaced after every five years.
4. Salvage value at the end of the life of the project represents recovery of working capital, book value of buildings, office furniture and fixtures and original value of land.
Annexure - 17 MTS solar power plant Loan Repayment Schedule
Years 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Opening Balance 536,985 524,735 510,770 494,850 476,701 456,011 432,425 405,537 374,884 339,940 300,104 254691 202920 143901 76619
(000) Interest@14% 75,178 73,463 71,508 69,279 66,738 63,842 60,540 56775 52484 47592 42015 35657 28409 20146 10727
Principle 12,250 13,965 15,920 18,149 20,690 23,586 26,888 30,653 34,944 39,836 45,413 51,771 59,019 67,282 76701
Payment 87,428 87,428 87,428 87,428 87,428 87,428 87,428 87,428 87,428 87,428 87,428 87,428 87,428 87,428 87,428
Closing
Balance 524,735 510,770 494,850 476,701 456,011 432,425 405,537 374,884 339,940 300,104 254,691 202,920 143,901 76,619 -
