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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
Equipment Number Estimated Cost (Rs.)
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
Equipment Number Estimated Cost (Rs.)
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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
Designation / Type Number Monthly Salary (Rs.)
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
Designation / Type Number Monthly Salary (Rs.)
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)
Per annum (Diminishing Balance)
Per annum (Diminishing Balance)
Per annum (Diminishing Balance)
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