Download Report

Pre-Feasibility Study
CNG FILLING STATION
Small and Medium Enterprise Development Authority
Government of Pakistan
www.smeda.org.pk
HEAD OFFICE
6th Floor, LDA Plaza, Egerton Road, Lahore
Tel: (042) 111-111-456, Fax: (042) 6304926, 6304927
helpdesk@smeda.org.pk
REGIONAL OFFICE
PUNJAB
8th Floor, LDA Plaza, Egerton
Road, Lahore.
Tel: (042) 111-111-456
Fax: (042) 6370474
helpdesk@smeda.org.pk
REGIONAL OFFICE
SINDH
REGIONAL OFFICE
NWFP
REGIONAL OFFICE
BALOCHISTAN
5TH Floor, Bahria
Complex II, M.T. Khan Road,
Karachi.
Tel: (021) 111-111-456
Fax: (021) 5610572
helpdesk-khi@smeda.org.pk
Ground Floor
State Life Building
The Mall, Peshawar.
Tel: (091) 9213046-47
Fax: (091) 286908
helpdesk-pew@smeda.org.pk
Bungalow No. 15-A
Chaman Housing Scheme
Airport Road, Quetta.
Tel: (081) 831623, 831702
Fax: (081) 831922
helpdesk-qta@smeda.org.pk
May, 2005
Pre-Feasibility Study
1
2
3
4
5
6
7
CNG Filling Station
INTRODUCTION TO SMEDA................................................................................. 2
Purpose of the document............................................................................................ 2
Crucial Factors & Steps in decision making for investment........................................ 3
3.1
Key Success Factors........................................................................................... 3
3.2
Opportunities ..................................................................................................... 3
3.3
Threats ............................................................................................................... 3
Project Profile............................................................................................................ 3
4.1
Opportunity Rationale ........................................................................................ 3
4.2
Project Brief....................................................................................................... 3
4.3
Introduction to CNG .......................................................................................... 4
4.4
Proposed Business Legal Status ......................................................................... 4
4.5
Project Cost........................................................................................................ 4
4.6
Viable Economic Size ........................................................................................ 5
4.7
Proposed Capacity.............................................................................................. 5
4.8
Proposed Location.............................................................................................. 5
4.9
CNG Policy........................................................................................................ 5
4.10 CNG Consultancy Services ................................................................................ 6
Market Analysis......................................................................................................... 6
5.1
Target Customers ............................................................................................... 6
5.2
Market Demand ................................................................................................. 6
5.3
Market Supply ................................................................................................... 6
5.4
Industry Growth................................................................................................. 6
REGULATIONS, Licenses and incentives................................................................. 7
6.1
License............................................................................................................... 7
6.2
Certificate (by HDIP) ......................................................................................... 7
6.3
NOCs................................................................................................................. 7
6.4
Incentives........................................................................................................... 8
6.4.1
Sales Tax.................................................................................................... 8
6.4.2
Custom Duty .............................................................................................. 8
6.5
Regulatory Requirements ................................................................................... 8
6.5.1
Quality Certificate ...................................................................................... 8
6.5.2
List of Equipment....................................................................................... 8
6.5.3
Income Tax on the Import of CNG Equipment ........................................... 8
6.6
Income Tax ........................................................................................................ 8
The Project CONCEPT.............................................................................................. 9
7.1
Project Cost........................................................................................................ 9
7.2
Project Financing ............................................................................................... 9
7.3
Project Details.................................................................................................... 9
7.3.1
Location ..................................................................................................... 9
7.3.2
Land........................................................................................................... 9
7.3.3
Building ................................................................................................... 10
7.3.4
Material Inputs ......................................................................................... 11
7.3.5
CNG Equipment....................................................................................... 11
7.3.6
Suppliers .................................................................................................. 12
7.3.7
Stores & Spares ........................................................................................ 13
7.3.8
Furniture and Fixtures .............................................................................. 13
1
PREF-34/May, 2005/Rev 2
Pre-Feasibility Study
CNG Filling Station
7.3.9
Office Equipment ..................................................................................... 13
7.4
Manpower Requirement ................................................................................... 13
8
Basis for Financial Projections................................................................................. 14
8.1
Inflation Rate ................................................................................................... 14
8.2
Revenue Assumptions ...................................................................................... 14
8.2.1
No. of Cars ............................................................................................... 14
8.2.2
Gas per Vehicle ........................................................................................ 14
8.3
Depreciation on Assets..................................................................................... 15
8.3.1
Accounting Profit ..................................................................................... 15
8.3.2
Taxable Profit........................................................................................... 15
8.4
First Year Allowance ....................................................................................... 15
8.5
Multiple Shift Allowance ................................................................................. 15
8.6
Amortization of Preliminary Expenses ............................................................. 16
8.7
Working Capital............................................................................................... 16
8.7.1
Accounts Receivables............................................................................... 16
8.7.2
Advances to Employees............................................................................ 16
8.7.3
Accrued Utilities and Power Expenses .................................................. 16
8.7.4
Accounts Payable ..................................................................................... 16
8.7.5
Sales Tax Payable..................................................................................... 16
8.8
Sales Tax ......................................................................................................... 16
8.9
Ratio/Financial Analysis .................................................................................. 16
8.10 Alternative Investment Opportunity ................................................................. 17
9
Financial Analysis ................................................................................................... 18
9.1
Project Costs .................................................................................................... 18
9.2
Projected Income Statement ............................................................................. 19
9.3
Projected Balance Sheet ................................................................................... 20
9.4
Projected Cash Flow Statement ........................................................................ 21
9.5
Revenues.......................................................................................................... 22
9.6
Cost of Sales .................................................................................................... 23
9.7
Working Capital............................................................................................... 24
9.8
Ratio Analysis.................................................................................................. 25
10
Requirement for the License ................................................................................ 26
2
PREF-34/May, 2005/Rev 2
Pre-Feasibility Study
CNG Filling Station
DISCLAIMER
The purpose and scope of this information memorandum is to introduce the subject
matter and provide a general idea and information on the said area. All the material
included in this document is based on data/information gathered from various sources
and is based on certain assumptions. Although, due care and diligence has been taken to
compile this document, the contained information may vary due to any change in any of
the concerned factors, and the actual results may differ substantially from the presented
information. SMEDA does not assume any liability for any financial or other loss
resulting from this memorandum in consequence of undertaking this activity. The
prospective user of this memorandum is encouraged to carry out additional diligence
and gather any information he/she feels necessary for making an informed decision.
For more information on services offered by SMEDA, please contact our website:
www.smeda.org.pk
DOCUMENT CONTROL
Document No.
PREF-34
Revision
2
Prepared by
SMEDA-Punjab
Issue Date
May, 2002
Revised on
May, 2005
Issued by
Library Officer
1
PREF-34/May, 2005/Rev 2
Pre-Feasibility Study
1
CNG Filling Station
INTRODUCTION TO SMEDA
The Small and Medium Enterprise Development Authority (SMEDA) was established with
the objective to provide fresh impetus to the economy through the launch of an aggressive
SME support program.
Since its inception in October 1998, SMEDA had adopted a sectoral SME development
approach. A few priority sectors were selected on the criterion of SME presence. In depth
research was conducted and comprehensive development plans were formulated after
identification of impediments and retardants. The all-encompassing sectoral development
strategy involved recommending changes in the regulatory environment by taking into
consideration other important aspects including finance, marketing, technology and human
resource development.
SMEDA has so far successfully formulated strategies for sectors including, fruits and
vegetables, marble and granite, gems and jewelry, marine fisheries, leather and footwear,
textiles, surgical instruments, transport and dairy. Whereas the task of SME development at
a broader scale still requires more coverage and enhanced reach in terms of SMEDA’s
areas of operation.
Along with the sectoral focus a broad spectrum of business development services is also
offered to the SMEs by SMEDA. These services include identification of viable business
opportunities for potential SME investors. In order to facilitate these investors, SMEDA
provides business guidance through its help desk services as well as development of project
specific documents. These documents consist of information required to make wellresearched investment decisions. Pre-feasibility studies and business plan development are
some of the services provided to enhance the capacity of individual SMEs to exploit viable
business opportunities in a better way.
This document is in the continuation of this effort to enable potential investors to make
well-informed investment decisions.
2
PURPOSE OF THE DOCUMENT
The objective of the pre-feasibility study is primarily to facilitate potential entrepreneurs to
facilitate investment and provide an overview about CNG Filling Station business. The
project pre-feasibility may form the basis of an important investment decision and in order
to serve this objective, the document covers various aspects of the business concept
development, start-up, production, marketing, and finance and business management. The
document also provides sectoral information, brief on government policies and
international scenario, which have some bearing on the project itself.
This particular pre-feasibility is regarding “CNG Filling Station” which comes under
“Petroleum” sector.
2
PREF-34/May, 2005/Rev 2
Pre-Feasibility Study
3
CNG Filling Station
CRUCIAL FACTORS & STEPS IN DECISION MAKING FOR INVESTMENT
3.1 Key Success Factors
Following factors are the key in making this project profitable:
 Location of the project will play a pivotal role in the successful running of the CNG
station. The daily turnover of the cars largely depends on this important factor.
 Selection of proper equipment is another key for carrying out the successful operations
of the proposed project.
3.2 Opportunities
The proposed project would have a number of competitive advantages:
 The project will provide cheaper fuel to its customers compared to the petroleum
products which are already on the higher side.
 Government has exempted the imposition of sales tax and custom duties on the import
of CNG kits and CNG plant and equipment,
 HDIP, a non-profitable organization working under the umbrella of Ministry of
Petroleum and Natural Resources, provides consultancy services to the interested
parties for setting up the CNG filling stations.
3.3 Threats
The proposed project will be facing the following threat:
 Market saturation over a longer period of time due to a large number of entrants
 Threat of increase in the prices of the natural gas by the government
4
PROJECT PROFILE
4.1 Opportunity Rationale
Due to the environment friendly nature and low cost of natural gas, Hydrocarbon
Development Institute of Pakistan (HDIP) has recognized the need and necessity to
promote the use of CNG as a fuel in automobiles. HDIP has pioneered the use of
environment friendly CNG in road transport as an economically viable fuel, which can
substitute the imported petroleum products.
4.2 Project Brief
The business of CNG filling station has marked its place in the country through growth
during the last few years. This growth has opened up new opportunities and more CNG
filling stations are being setup all over Pakistan. The prime reason for this is the low cost of
the fuel. Along with that, CNG fuel is less hazardous to the environment as compared to
the traditional petroleum fuel.
3
PREF-34/May, 2005/Rev 2
Pre-Feasibility Study
CNG Filling Station
4.3 Introduction to CNG
Natural Gas is one of the most valuable natural resources abundantly available in our
country. The people of Pakistan have been using the petroleum products as a fuel in their
automobiles, thus spending a huge amount of foreign exchange on import of petroleum
products. Moreover, the Government of Pakistan has taken certain concrete steps in order
to promote the use of natural gas as a fuel substitute in the automobiles. Due to the efforts
made by the Government and comparatively low prices of gas, more than 600,000*
vehicles have already been converted to operate on Compressed Natural Gas (CNG)
fueling system all over Pakistan.
Due to high cost of petroleum products, lots of vehicles are switching over to CNG. At
present, there are more than 6701 CNG stations operating in the Country and this number is
insufficient to meet the rising demand of CNG in the coming years.
The total project cost for setting up the CNG filling stations has been estimated at Rs.31.13
million. It includes land, building, CNG equipment and machinery, spares, along with the
preliminary expenses and working capital.
Compressed Natural Gas (CNG) is produced when the natural gas is compressed into
cylinders to be used as a fuel in the automobiles. The compressed natural gas has been used
as an automobile fuel since 1940, and over the years, the technology has been modified and
refined. In the recent years, the usage of CNG as an automobile fuel has significantly
increased because of its low cost and environment friendly nature.
4.4 Proposed Business Legal Status
The proposed legal structure of the business entity is either sole proprietorship or
partnership. Although selection totally depends upon the choice of the entrepreneur but this
financial feasibility is based on a Sole Proprietorship.
4.5 Project Cost
The cost of project has been estimated as Rs.31.13 million including land, civil works,
CNG equipment and office equipment. Preliminary expenses and gas security charges are
estimated at Rs.0.82 million and Rs.1.8 million respectively. The CNG equipment
comprises of gas compressor, dual hose dispenser, electric control panel, and storage
cascades/cylinders.
Table 4-1
Project Investment
Fixed Investment
Working Capital
Total Investment
Rs. 30,750,140
Rs. 377,390
Rs. 31,127,530
The proposed pre-feasibility is based on the assumption of 50% debt and 50% equity.
However this composition of debt and equity can be changed as per the requirement of the
investor.
The project seems to be viable with the following returns on investment.
1
Source: International Association of Natural Gas Vehicles (IANGV) Feb, 2005 Statistics
4
PREF-34/May, 2005/Rev 2
Pre-Feasibility Study
Table 4-2
CNG Filling Station
Project Returns
Internal rate of return (project)
Internal rate of return (equity)
Net Present Value @ 20%
Payback period – based on cash inflows
23.1%
45.1%
Rs. 3,401,246
4 years
4.6 Viable Economic Size
A minimum of 202 cars is required to be filled daily in order to operate at breakeven.
Considering the market trends and number of vehicles being converted into CNG fueling
system, initially the project would be able to attract and serve at-least 202 vehicles per day.
4.7 Proposed Capacity
The equipment for CNG filling station that has been considered for preparing this prefeasibility study is of British origin. This equipment is relatively more efficient and
effective of the all types of equipment available in the market. Various other types of
equipment are also available at a lower price. The chosen equipment is capable of refueling
50 vehicles per hour. Twin hose dispenser accompanies this equipment and it handles
refueling of two vehicles at a time.
4.8 Proposed Location
The proposed locations for the CNG Filling stations in Lahore are as follows
 Multan Road, Lahore
 Wapda Town, Lahore
 Model Town, Link Road, Lahore
 Johar Town, PIA Colony
The said project may also be established in commercial area of any other city.
4.9 CNG Policy
The Government of Pakistan has offered number of incentives for encouraging the use of
CNG in the country. Some of these are summarized below:
 Strong Government commitment to promote usage of CNG
 Liberal policy of providing license for CNG retailing
 Deregulated market price of CNG (for the consumers)
 Priority of providing natural gas connection to CNG stations
 Exemption of import duty and sales tax till June 2005 on import of machinery and
equipment, CNG kits and cylinders
5
PREF-34/May, 2005/Rev 2
Pre-Feasibility Study
CNG Filling Station
This has provided a boost to the industry, and so far, more than 600,000 vehicles have been
converted to CNG and 6702 CNG stations are operational. According to International
Association for Natural Gas Vehicles (IANGV) statistics, Pakistan is ranked third in the
CNG-using countries after Argentina and Brazil.
4.10 CNG Consultancy Services
HDIP is also offering consultancy services to the investors, which include the whole range
of activities like formation of company, selection of site, legal formalities, design of
station, specifications of the equipment, selection of equipment, selecting and appointing
the contractor, training of manpower, commissioning and supervision, etc.
5
MARKET ANALYSIS
The commercial application of CNG technology now forms an important element of
Government’s petroleum policy, which is reflected in the efforts made by the government
for installing 670 CNG stations in the country and converting 600,000 vehicles on CNG
fueling system till February 2005.
5.1 Target Customers
The target customers for the proposed project would be the vehicles running on CNG fuel.
5.2 Market Demand
At present there are more than 600,000 vehicles, which have been converted to CNG fuel,
and a large number of vehicles are further being converted.
Due to the increasing prices of petroleum products, the trend of converting cars to CNG
fueling system has been on a rise. However, there exist a large number of people who were
reluctant to convert their vehicles from petrol to gas due to safety concerns. Recently, many
car manufacturers have started manufacturing the cars with built-in CNG fueling system.
This change has led to enhancing the confidence in the minds of the general public
regarding the safety concerns, and now, more people are inclined towards purchasing these
factory-fitted CNG fueling system cars.
5.3 Market Supply
Total number of CNG stations in Pakistan is only 670, which is quite low for meeting the
growing demand of CNG. Apart from these 670 CNG stations, many new CNG stations are
being setup across the country.
5.4 Industry Growth
There has been a tremendous growth in the CNG sector over the yeas. The total number of
vehicles on CNG was 100,000 and CNG filling stations was 150 at the end of year 2000.
The number of CNG vehicles and CNG filling stations has increased to 210,000 vehicles
2
As on Feb, 2005
6
PREF-34/May, 2005/Rev 2
Pre-Feasibility Study
CNG Filling Station
and 220 stations respectively and by the year 2005 they have tremendously grown up to
670 CNG Stations and 600,000 CNG fitted vehicles. The growth in terms of percentage is
given in the following table:
Table 5-1 Growth Percentage of Vehicles
Year
2004
2005
Percentage Increase
No. Of Vehicles on CNG
450,000
600,000
33%
CNG Filling Stations
550
670
22%
The above growth rates present an opportunity for the new entrants to earn profits by
setting up new CNG filling stations to meet the growing demand.
6
REGULATIONS, LICENSES AND INCENTIVES
6.1 License
Obtaining a license from Ministry of Petroleum and Natural Resources is a pre-requisite for
setting-up the CNG station. The cost associated with this license is Rs.25,000.
6.2 Certificate (by HDIP)
After the installation of the required equipment for CNG filling station, HDIP will inspect
the working of the equipment, and once satisfied, will issue a certificate verifying that the
installed equipment is up to the required standards. The cost associated with this
certification is Rs. 35,000.
6.3 NOCs
No Objection Certificate will be required from the following departments prior to the
commencement of the business:
 Concerned development authority of the city (Lahore Development Authority in case of
Lahore)
 Traffic Engineering and Planning Authority (TEPA)
 Traffic Police (SSP)
 Department of Civil Defense
 National Highway Authority (NHA)
 Central Board of Revenue (CBR)
 Civil Administration-Tehsil Municipal Administration (TMA)
 Irrigation Department
 Forest Department
 Explosives Department
The cost associated for obtaining the above NOCs is estimated at Rs.100,000.
7
PREF-34/May, 2005/Rev 2
Pre-Feasibility Study
CNG Filling Station
6.4 Incentives
6.4.1 Sales Tax
The import of CNG equipment is exempted from sales tax vide SRO No.38 (1)/98 dated
21st January 1998 till June, 2005.
6.4.2 Custom Duty
The CNG equipment is also exempted from the custom duties as per the above-referred
SRO.
6.5 Regulatory Requirements
6.5.1 Quality Certificate
SRO.38 (1)/98 dated 21st January 1998 has been amended on April 11, 2002 and the
“Quality Certificate” from original manufacturer has been made mandatory. This certificate
should state that the equipment meets the safety standard as laid down in Pakistan CNG
Rules 1992. The designated third party inspector witnesses this Quality Certificate. The
cost of third party inspection is $500.
6.5.2 List of Equipment
The list of equipment and their various manufacturers has also been mentioned in the same
amended SRO whose import is exempted from custom duty and sales tax.
6.5.3 Income Tax on the Import of CNG Equipment
Income Tax, at the rate of 6%, is payable by the importer on the import of CNG equipment.
6.6 Income Tax
The income of the CNG filling station is not exempted from the income tax. The investor
has to pay tax on his/her income according to the nature of the business entity. The current
project is being operated as a private limited company, so the income tax is payable at the
rate of 45%.
8
PREF-34/May, 2005/Rev 2
Pre-Feasibility Study
7
CNG Filling Station
THE PROJECT CONCEPT
7.1 Project Cost
The details of the cost of project are as follows:
Table 7-1
Project Costs
Item
Land (9,000 Sq. ft)
Building – Civil Works
CNG Equipment
Stores & Spares
Office Equipment
Furniture & Fixtures
Gas Security
Preliminary Expenses
Working Capital
Total
Rupees
17,000,000
1,700,000
8,732,100
513,040
100,000
85,000
1,800,000
820,000
377,390
31,127,530
7.2 Project Financing
The total cost of the project is Rs.31.13 million including the working capital of Rs.0.377
million. The sponsors of the project will contribute Rs.15.56 million and the bank will
finance the remaining amount of Rs.15.56 million.
7.3 Project Details
7.3.1 Location
For setting up a CNG filling station, location is the prime factor. As per the requirements of
the Government of Pakistan, the filling station must be situated in a commercial area. CNG
filling stations are not allowed to be installed in the residential areas.
7. 3. 2 L and
A minimum of nine thousand (9000) square feet of land with at least 75 feet front opening
is required for installing CNG filling station. An amount of Rs.17 million has been
allocated for the acquisition of nine thousand square feet of commercial land in Lahore in
in the areas of Model Town Link Road or Multan Road. A comparison of costs of
commercial land in various other areas of Lahore is given below for reference purpose.
9
PREF-34/May, 2005/Rev 2
Pre-Feasibility Study
CNG Filling Station
Table 7-2 Approximate Cost of Land in the Proposed Areas
Location
Gulberg, M. M. Alam Road.
Main Boulevard
Main Ferozpur Raod
Model Town Link Road
Multan Road
Johar Town, PIA Colony
Price Range for 9,000 Sq.ft
Rs.16,000,000–18,000,000
Rs. 30,000,000—32,000,000
Rs.10,000,000–12,000,000
Rs.7,000,000–9,000,000
Rs.2,000,000–10,000,000
Rs.18,000,000–35,000,000
In this report, prices of commercial land for Lahore city has been considered, however,
prices may considerably vary in the other cities like Quetta, Karachi, Hyderabad, Multan,
Faisalabad, Islamabad, Peshawar etc.
7. 3. 3 B ui l di ng
There are certain civil works required to be carried out at the proposed location. The civil
works would be carried out on an area of 2250 square feet. The rest of the area will be
floored with tuff tiles. Civil work includes the following:







Office
Control Room
Compressor and Cascade/Cylinder Storage Room
Shed for Dispenser
Toilet/washroom
Underground Gas Piping and Power Cables
Flooring
The total cost of construction is estimated at Rs.1.7 million. Details for the said cost are as
follows:
Table 7-3
Construction Cost (Amount in Rupees)
Description
Cost per Sq. ft.
Cost
Office, control room, compressor and cylinder storage
500
1,125,000
room, shed and toilet/washroom (2,250 sq.ft)
Underground gas piping
200,000
Flooring (6,750sq.ft)
45
303,750
Contingencies
71,250
1,700,000
Total Cost
Explosives department has laid down certain specifications for the compressor and
cascade/cylinders storage room, which are as follows:
1. Minimum one meter distance is required between walls and compressor.
2. Minimum distance of one meter should be kept between compressor and
cascade/cylinders.
10
PREF-34/May, 2005/Rev 2
Pre-Feasibility Study
CNG Filling Station
3. Fire rated walls3 must be used in the compressor and cylinder storage room.
4. Roof of the compressor and storage room should not be of permanent nature4.
7.3.4 Material Inputs
There are two main inputs required for the CNG filling station, one is the natural gas and
the other is electricity. The sponsor of the project is required to obtain both the connections
from the relevant authorities i.e. WAPDA and Sui Northern Gas Pipelines Limited
(SNGPL) or Sui Southern Gas Pipelines Limited (SSGPL). The cost associated with
obtaining the gas connection is Rs.75, 000/-. In addition to this, a minimum security
deposit of Rs.1.8million is also required to be deposited with the concerned authority.
Bank guarantee is also acceptable in case of gas security. An amount of Rs.0.35 million is
required for obtaining electricity connection. There is no security deposit required for the
electricity connection.
7.3.5 CNG Equipment
The following equipment is required for a CNG filling station:
 Gas Compressor
The purpose of compressor is to compress the gas enabling it to discharge the gas for
refueling. This compressor requires an input pressure of 8 or 15 PSIG5 from the main gas
supply with the outlet pressure of 3,625 PSIG. With this discharge pressure, the equipment
can refuel 50 vehicles per hour.
 Electric Control Panel
Electric control panel is required to operate the gas compressor. This panel will be mounted
in the control room.
 Storage Cascade
Storage cascades/cylinders are used to store the natural gas.
 Priority Panel for Vehicle Priority
During rush hours, the compressor is directly connected to the dispenser, bypassing the
storage cascades/cylinders with the help of priority panel, facilitating the refueling of
vehicles at a faster rate.
 CNG Dispenser high flow dual hose
Gas is filled into the vehicles with the help of dispenser. This dual hose dispenser is
capable of handling two vehicles at a time.
There are various foreign manufacturers providing the CNG filling station equipment. In
this pre-feasibility report, a British origin compressor6 has been selected. This equipment is
selected because of its low electricity consumption, higher outlet pressure, low
maintenance, durable working, longer periods between overhauls and good market repute
and presence.
3
with RCC (Reinforced cement concrete) structure
Corrugated asbestos might be used as the roof for the compressor and cylinder storage room to prevent the
compressor and cylinders from heat.
5
pounds per square inch gauge pressure
6
Ham worthy Compressor, Bellies & Marcum, UK, Model: H430H-WL Capacity: 400 m3/hr
4
11
PREF-34/May, 2005/Rev 2
Pre-Feasibility Study
CNG Filling Station
Different gas pressures are available in different areas of Pakistan from the main gas supply
line. The pressure of 15 PSIG is not easily available at every location. Where the gas
pressure of 15 PSIG is not available, in that situation, the model with inlet pressure of 8
PSIG is used, which has been manufactured to operate at a lower gas pressure. However,
the consumption of electricity increases.
The total capacity of the selected equipment is 400M3/Hr with a total power load of 93
KW.
All the CNG filling station equipment is foreign manufactured and imported on the specific
requirement of the sponsor by the authorized agent. Usually, the equipment is delivered
within 12 to 16 weeks from the receipt of purchase order and initial payment. The details of
this equipment and accessories are available in Annexure # 1.1.1.
7.3.6 Suppliers
The Central Board of Revenue (CBR) has specified the list of compressors, storage
cylinders, CNG vehicle cylinders, CNG machinery & equipment and conversion kits in
SRO 38(1)/98. For the convenience of investor, a list of some of the available equipment
and machinery is given below:
Table 7-4
Supplier’s Name
Supplier’s Name
Rix Services, New Zealand
Compare UK Ltd, UK
Norwalk Company Inc. USA
Sulzer Burckhardt Engg. Works Switzerland
Hamworthy, Bellis & Morcom UK
Safe s.r.l Italy
Hurricane, Grimmer Industries, USA
Chengdu Jinxing Chemical Machinery and
Equiment Factory, China
Chonqing Air Gas Compressor Factory, China
Intermech Ltd. NewZealand
Unigas NewZealand
Compare Mahle GmbH, Germany
Sicom SRL , Italy
12
PREF-34/May, 2005/Rev 2
Available Models
2JJS3G-178, FX-150, 3KX3G-40,
6W5G-150
Gazpack 36, Gazpack37
C-75-3, C150-4, NQSV3
C40111S, C50214S
H430H-WL, H280H-WL, V130H-WL
SW75SE-F1-EM, SW110SE-F1-EM,
SW110-F1-EM, SW132-F1-EM,
SW90F0, 35-EM
CNG90, CNG 125, CNG250
ZW-3.45/250JX, ZW-5.0/1-23, ZW5.52/0.5-250JX
L-3.8/1-250, L-3/1-250, L-5/0.56-250,
L-2.9/0.56-250, L-4.65/0.56-250,
W3.8/0.56-250, W-3.8/1-250
RHINO PAR-75VE 4-8
RHINO PAR-1-DE 4-82
RHINO-PAR 150DE4-10
Apollo VR-550
5409.2NG.EU
650.250.20-IFDE-23SE
Pre-Feasibility Study
CNG Filling Station
7.3.7 Stores & Spares
The whole equipment required for setting up a CNG filling station is imported. Therefore,
it is required to build an inventory of necessary spare parts to meet the unforeseen
circumstances such as breakdown or any other fault in any part or equipment. For this
purpose, a stock of necessary spare parts worth $8,000 will be imported along with other
equipment to maintain a minimum level of spare parts.
7.3.8 Furniture and Fixtures
Furniture and fixtures mainly include tables, chairs, sofas, fans & lights, carpet, curtains
and fire extinguishers. It is estimated that the furniture and fixtures of Rs.85,000 would be
purchased.
7.3.9 Office Equipment
Some office equipment is also required for the proposed project. A provision of Rs.100,000
ha been made for acquiring the required office equipment. The details of office equipment
are annexed in Annexure # 1.1.
7.4 Manpower Requirement
Manpower requirement for the CNG filling station includes manager, cashier, dispenser,
operators, accountant, watchman and sweeper. The total staff strength would be 13 persons
for the two shifts. The staff salaries for year one are as follows:
Table 7-5
Human Resource Requirement
Designation
Manager
Deputy Manager
Accountant
Cashier
Dispenser
Operator
Watchmen
Sweeper
Total
No. of
Employees for
two shifts
1
1
1
2
4
2
2
1
13
PREF-34/May, 2005/Rev 2
Salary per
month
20,000
10,000
6,000
4,500
3,500
5,500
3,500
2,500
Total salary
per month
(Rupees)
240,000
120,000
72,000
108,000
168,000
132,000
84,000
30,000
954,000
Pre-Feasibility Study
8
CNG Filling Station
BASIS FOR FINANCIAL PROJECTIONS
8.1 Inflation Rate
10% inflation rate has been considered while making the projections for cost of sales,
operational expenses and salaries. The prices for gas, electricity, operational expenses and
staff salaries are increased by 10% every year as a result of inflation.
The selling price of gas has been increased by 5% every year.
8.2 Revenue Assumptions
8.2.1 No. of Cars
Based on the survey of some CNG stations in Lahore, the number of cars assumed for
revenue projections is as follows:
Table 8-1
Detailed Projected Increase in Cars
Years
No. Of Cars
1
202
2
303
3
363
4
435
5
522
6
600
7
690
8
793
9
911
10
1,047
The average number of cars in the first years is estimated at 202 cars per day, starting from
120 cars per day in the first month and going up to 290 cars per day in the 12th month.. In
the second year, it has increased to 303 cars per day. After second year, number of cars is
increasing at a rate of 20% till fifth year because the project would be in its growth stage.
An increase of 15% has been considered from sixth year, because at that time, the project
would be at its maturity stage.
8.2.2 Gas per Vehicle
Currently, the CNG cylinders with two different capacities are installed in the CNG fitted
cars. One type of cylinder has a capacity of 40 kg and the other has a capacity of 50 kg.
Gas of 6.6 and 11.12 cubic meter can be filled in the cylinders of 40kg and 50kg
respectively. A weighted average of 9.31 cubic meters of gas per vehicle has been taken for
the revenue calculations.
14
PREF-34/May, 2005/Rev 2
Pre-Feasibility Study
Table 8-2
CNG Filling Station
Average Volume
Cylinder Type
40 kg
50 kg
Weighted Average Volume
Volume
(cubic meters)
6.6
11.12
Percentage Use
40%
60%
9.31 cubic meters
8.3 Depreciation on Assets
8.3.1 Accounting Profit
Depreciation on the assets has been charged at the following rates for the calculation of
accounting profits:
Table 8-3
Depreciation Rates
Building
CNG Plant & Equipment
Office Equipment
Furniture & Fixture
5%
10%
20%
10%
8.3.2 Taxable Profit
For the purpose of calculating taxable profit, depreciation is calculated on the rates as per
the Income Tax Law, which is as follows:
Table 8-4
Tax Adjustments
Land
Building
CNG Plant & Equipment
Office Equipment
Furniture & Fixture
0%
5%
10%
10%
10%
8.4 First Year Allowance
Other than the normal depreciation allowances, first year allowance is also provided on the
newly installed CNG plant and equipment for the purpose of providing benefit to the
entrepreneur. The first year allowance is calculated at 40% of written down value of CNG
plant and equipment.
8. 5
Multiple Shift Allowance
In addition to normal depreciation and first year allowances, multiple shift allowance is
also provided for the plant and machinery, which operates on double or triple shift basis. In
this proposed project, CNG plant will run on two-shift basis during the whole year. So
multiple shift allowance is calculated and added to the depreciation of CNG plant and
15
PREF-34/May, 2005/Rev 2
Pre-Feasibility Study
CNG Filling Station
equipment for all the ten years. Multiple shift allowance has been taken as 66.6% of the
normal depreciation allowance.
8. 6
Amortization of Preliminary Expenses
Preliminary expenses amounting to Rs.820, 000/- will be amortized at the rate of 20% per
annum.
8.7 Working Capital
Working capital is calculated on the basis of following assumptions:
8.7.1 Accounts Receivables
Mostly, the sale of CNG is on cash basis. However, some CNG stations do offer a credit
facility to reputable companies on agreed terms and conditions. Therefore, receivables are
estimated at 6% of the total sales amount.
8.7.2 Advances to Employees
Advances to employees are calculated on the basis of 30 days of both payroll and staff
benefits.
8.7.3 Accrued Utilities and Power Expenses
Normally, it would take 20 days to deposit the utilities (electricity, water and telephone)
bills. Therefore, utility expenses for 20 days have been taken as the basis for working
capital computation.
8.7.4 Accounts Payable
Cost of gas and electricity for 20 days has been considered in calculating accounts payable.
8.7.5 Sales Tax Payable
Every company is required to deposit the amount of sales tax collected from the consumers,
within 14 days. The same has been taken as the basis for calculating the amount of sales tax
payable.
8.8 Sales Tax
The sales tax levied by Government of Pakistan is charged to the customers at the rate of
15% on the sale of gas. These funds are deposited after every 14 days in favor of
Government of Pakistan.
8.9 Ratio/Financial Analysis
The figures for the rate of return on investment and return on equity are averaged for the
first five years to make it more reasonable.
16
PREF-34/May, 2005/Rev 2
Pre-Feasibility Study
CNG Filling Station
8.10 Alternative Investment Opportunity
The cost of land is the major portion of investment in this project. If any investor does not
have enough resources for the acquisition of land, he/she also has another alternative
course of action to setup the CNG station without acquiring the land.
The investor can make investments only in the purchase of CNG plant and equipment and
install this equipment with any existing petrol pump. In this case, the investment for
installing the CNG equipment will be made by the investor and the space will be provided
by the dealer/owner of the existing petrol pump. The investor will pay 15% commission on
the total revenue to the dealer/owner of the petrol pump. Moreover, the investor can also
avail lease facility from any leasing company on the purchase of CNG plant and
equipment.
17
PREF-34/May, 2005/Rev 2
Pre-Feasibility Study
9
CNG Filling Station
FINANCIAL ANALYSIS
9.1 Project Costs
P ro je c t C o s t
R s.
A s s e ts
Land
B u ild in g - C iv il W o r k s
C N G E q u ip m e n t
$
1 3 3 ,9 0 0
Sto re & Sp a re s
$
8 ,0 0 0
O ffic e E q u ip m e n t
F u r n itu r e & F ix t u r e
A d v a n c e s & S e c u r it ie s
G a s S e c u r it y ( D e p e n d s o n t h e S N G P L a s s e s s m e n t )
P r e l i m in a r y E x p e n s e s
G a s C o n n e c t io n s & I n s t a lla tio n C h a r g e s ( S N G P L )
E le c t r ic it y C o n n e c t io n s C h a r g e s
Local E xpe nses
L ic e n s e fr o m M O P
R e g is tr a t io n o f C o m p a n y ( A u t h o r iz e d C a p ita l 1 0 m illio n )
I n s p e c t io n F e e ( H D I P )
O th e r A p p r o v a ls ( N O C s )
T r a v e llin g & C o n v e y a n c e
O th e r E x p e n s e s
W o r k in g C a p i t a l
T o ta l A s s e ts
T o t a l C a p i t a l E m p lo y e d B y :
Bank Loan
E q u ity
T o t a l C a p it a l
1 7 ,0 0 0 , 0 0 0
1 ,7 0 0 ,0 0 0
8 ,7 3 2 ,1 0 0
5 1 3 ,0 4 0
1 0 0 ,0 0 0
8 5 ,0 0 0
2 8 ,1 3 0 ,1 4 0
1 ,8 0 0 ,0 0 0
7 5 ,0 0 0
3 5 0 ,0 0 0
1 0 0 ,0 0 0
2 5 ,0 0 0
8 5 ,0 0 0
3 5 ,0 0 0
1 0 0 ,0 0 0
2 0 ,0 0 0
3 0 ,0 0 0
8 2 0 ,0 0 0
3 7 7 ,3 9 0
R s . 3 1 ,1 2 7 ,5 3 0
50%
50%
1 US$ =
Rs.
P ro je c t R e tu rn s
IR R
NPV @ 20%
P a y B a c k P e r io d
1 5 ,5 6 3 ,7 6 5
1 5 ,5 6 3 ,7 6 5
R s . 3 1 ,1 2 7 ,5 3 0
6 0 .5 0
%
R s.
Y rs.
18
PREF-34/May, 2005/Rev 2
R s.
2 3 .1 %
3 ,4 0 1 ,2 4 6
4
Pre-Feasibility Study
CNG Filling Station
9.2 Projected Income Statement
Statement Summaries
Income Statement
Gross Sales
Less: Sales Tax
Net Sales
Cost of Sales
Gross Profit
Operating Expenses:
Operating Expenses
Depreciation
Amortization of Preliminary Exp.
Operating Profit
Interest on Loan
Interest on Lease
Profit before Tax
Taxation (See working)
Profit after Tax
Balance B/F
Retained Earnings
Balance C/F
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
202 Cars
303 Cars
363 Cars
435 Cars
522 Cars
600 Cars
690 Cars
793 Cars
911 Cars
1047 Cars
13,139,090
1,714,651
11,424,439
20,375,524
2,659,006
17,716,518
25,673,161
3,350,347
22,322,813
32,303,626
4,215,623
28,088,003
40,702,568
5,311,685
35,390,883
49,123,789
6,410,655
42,713,135
59,316,976
7,740,865
51,576,110
71,580,116
9,341,205
62,238,911
86,342,950
11,267,755
75,075,195
104,194,426
13,597,373
90,597,054
5,516,754
5,907,685
8,937,181
8,779,338
11,766,663
10,556,150
15,474,153
12,613,850
20,382,143
15,008,740
25,720,252
16,992,883
32,478,303
19,097,807
40,992,720
21,246,191
51,725,438
23,349,757
65,304,354
25,292,699
2,032,005
986,710
164,000
3,182,715
2,724,970
2,147,885
890,289
164,000
3,202,174
5,577,164
2,284,084
803,698
164,000
3,251,782
7,304,369
2,441,762
725,883
164,000
3,331,646
9,282,204
2,622,282
810,345
164,000
3,596,627
11,412,113
2,896,712
731,953
3,628,665
13,364,218
3,120,922
661,391
3,782,313
15,315,494
3,374,100
597,852
3,971,951
17,274,240
3,658,487
540,615
4,199,101
19,150,656
3,976,614
489,037
4,465,652
20,827,048
1,089,464
1,089,464
1,635,507
57,122
1,578,384
1,578,384
1,578,384
1,852,088
1,852,088
3,725,076
487,101
3,237,975
1,578,384
4,816,359
4,816,359
1,416,303
1,416,303
5,888,066
2,126,398
3,761,668
4,816,359
8,578,027
8,578,027
980,517
980,517
8,301,687
2,976,423
5,325,264
8,578,027
13,903,291
13,903,291
544,732
544,732
10,867,382
3,841,159
7,026,222
13,903,291
20,929,514
20,929,514
108,946
108,946
13,255,272
4,687,398
8,567,874
20,929,514
29,497,388
29,497,388
15,315,494
5,415,542
9,899,952
29,497,388
39,397,339
39,397,339
17,274,240
6,105,492
11,168,748
39,397,339
50,566,087
50,566,087
19,150,656
6,764,544
12,386,112
50,566,087
62,952,199
62,952,199
20,827,048
7,351,985
13,475,063
62,952,199
76,427,262
76,427,262
19
PREF-34/May, 2005/Rev 2
Pre-Feasibility Study
CNG Filling Station
9.3 Projected Balance Sheet
Statement Summaries
Balance Sheet
YEAR
Start up
1
2
3
4
5
6
7
8
9
10
27,617,100
27,617,100
26,630,390
26,630,390
25,740,101
25,740,101
24,936,403
24,936,403
24,210,520
24,210,520
24,944,476
24,944,476
24,212,523
24,212,523
23,551,132
23,551,132
22,953,280
22,953,280
22,412,665
22,412,665
21,923,628
21,923,628
820,000
28,437,100
656,000
27,286,390
492,000
26,232,101
328,000
25,264,403
164,000
24,374,520
24,944,476
24,212,523
23,551,132
22,953,280
22,412,665
21,923,628
1,800,000
1,800,000
1,800,000
1,800,000
1,800,000
1,800,000
1,800,000
1,800,000
1,800,000
1,800,000
1,800,000
1,800,000
1,800,000
1,800,000
1,800,000
1,800,000
1,800,000
1,800,000
1,800,000
1,800,000
1,800,000
1,800,000
513,040
377,390
890,430
TOTAL ASSETS
31,127,530
CAPITAL EMPLOYED REPRESENTED BY:
793,364
87,450
513,040
1,042,927
2,436,781
31,523,171
-
1,230,314
96,195
513,040
1,999,944
3,839,493
31,871,594
-
1,550,195
105,815
513,040
3,469,418
5,638,468
32,702,872
-
1,950,556
116,396
513,040
6,398,351
8,978,343
35,152,863
-
2,457,700
128,036
513,040
9,535,653
12,634,428
39,378,904
-
2,966,190
140,839
513,040
17,094,942
20,715,011
46,727,534
-
3,581,674
154,923
513,040
27,451,315
31,700,953
57,052,084
-
4,322,147
170,415
513,040
38,994,185
43,999,787
68,753,067
-
5,213,555
187,457
513,040
51,680,102
57,594,154
81,806,819
-
6,291,462
206,203
513,040
65,388,343
72,399,047
96,122,675
-
15,563,765
15,563,765
15,563,765
1,578,384
17,142,149
15,563,765
4,816,359
20,380,124
15,563,765
8,578,027
24,141,792
15,563,765
13,903,291
29,467,056
15,563,765
20,929,514
36,493,279
15,563,765
29,497,388
45,061,153
15,563,765
39,397,339
54,961,104
15,563,765
50,566,087
66,129,852
15,563,765
62,952,199
78,515,964
15,563,765
76,427,262
91,991,027
15,563,765
15,563,765
14,007,389
14,007,389
10,894,636
10,894,636
7,781,883
7,781,883
4,669,130
4,669,130
1,556,377
1,556,377
31,127,530
296,952
10,000
66,681
373,633
31,523,171
482,429
11,000
103,406
596,834
31,871,594
636,806
12,100
130,291
779,197
32,702,872
839,426
13,310
163,941
1,016,677
35,152,863
1,108,042
14,641
206,566
1,329,249
39,378,904
FIXED ASSETS
Preliminary Expenses
OTHER ASSETS
Security
CURRENT ASSETS
Accounts Receivables
Advances to Employees
Stores & Spares
Cash & Bank Balances
SHARE CAPITAL
1,556,377 Shares @ Rs.10/- each
UNAPP. PROFIT/(LOSS)
LONG TERM LIABILITIES
Finance Lease
Long Term Loan
CURRENT LIABILITIES
Creditors
Utility Bills Payable
Sales Tax Payable
TOTAL
20
PREF-34/May, 2005/Rev 2
1,400,973
16,105
249,303
1,666,381
46,727,534
1,772,231
17,716
301,034
2,090,980
57,052,084
2,240,459
19,487
363,269
2,623,215
68,753,067
2,831,228
21,436
438,190
3,290,855
81,806,819
3,579,282
23,579
528,787
4,131,648
96,122,675
Pre-Feasibility Study
CNG Filling Station
9.4 Projected Cash Flow Statement
Statement Summaries
Cash Flow Statement
YEAR
SOURCES
FROM OPERATION
Profit Before Tax
Add: Depreciation
Amortization
1
2
3
1,635,507
986,710
164,000
3,725,076
890,289
164,000
5,888,066
803,698
164,000
1,150,710
2,786,217
1,054,289
4,779,365
2,786,217
4
5
6
7
8
9
10
8,301,687
725,883
164,000
10,867,382
810,345
164,000
13,255,272
731,953
-
15,315,494
661,391
-
17,274,240
597,852
-
19,150,656
540,615
-
20,827,048
489,037
-
967,698
6,855,764
889,883
9,191,570
974,345
11,841,727
731,953
13,987,225
661,391
15,976,885
597,852
17,872,091
540,615
19,691,271
489,037
21,316,085
4,779,365
6,855,764
9,191,570
11,841,727
13,987,225
15,976,885
17,872,091
19,691,271
21,316,085
1,556,377
57,122
3,112,753
487,101
3,112,753
2,126,398
3,112,753
2,976,423
3,112,753
3,841,159
1,556,377
4,687,398
5,415,542
6,105,492
6,764,544
7,351,985
1,613,499
1,172,718
3,599,854
1,179,511
5,239,151
1,616,612
6,089,176
3,102,395
8,498,213
3,343,514
6,243,774
7,743,450
5,415,542
10,561,343
6,105,492
11,766,599
6,764,544
12,926,727
7,351,985
13,964,100
507,181
665,537
377,390
222,493
957,017
1,042,927
147,138
1,469,474
1,999,944
173,462
2,928,933
3,469,418
206,212
3,137,302
6,398,351
184,161
7,559,290
9,535,653
204,970
10,356,373
17,094,942
223,729
11,542,870
27,451,315
240,811
12,685,916
38,994,185
255,859
13,708,241
51,680,102
1,042,927
1,999,944
3,469,418
6,398,351
9,535,653
17,094,942
27,451,315
38,994,185
51,680,102
65,388,343
507,181
729,674
876,813
1,050,275
1,256,487
1,440,648
1,645,617
1,869,346
2,110,157
2,366,017
507,181
222,493
147,138
173,462
206,212
184,161
204,970
223,729
240,811
255,859
OTHER SOURCES
APPLICATION
Repayments of Loan
Tax Payment
Dividend Paid
- Cash
SURPLUS / (DEFICIT)
INCREASE/(DECREASE) IN WORKING CAPITAL
NET INCREASE/(DECREASE)
OPENING BANK BALANCES
CLOSING CASH BALANCE
WORKING CAPITAL
Increase
21
PREF-34/May, 2005/Rev 2
Pre-Feasibility Study
CNG Filling Station
9.5 Revenues
Revenues
Quantity of Gas Sale per Vehicle
Annual Increase in the Sale Price of Gas
9.31 Cubic Meter
5%
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
202 Cars
303 Cars
363 Cars
435 Cars
522 Cars
600 Cars
690 Cars
793 Cars
911 Cars
1047 Cars
255
No. of Cars / day
Sale of Gas / day (in M3)
3
Sale of Gas / month (in M )
3
Sale of Gas / anum (in M )
Selling Price of Gas / M
3
Rs.
Total Revenue
1878
2816
3380
4050
4860
5586
6424
7383
8481
9748
57206
84488
101386
121496
145795
167580
192717
221485
254442
292427
686473
1013859
1216631
1457946
1749535
2010960
2312604
2657819
3053308
3509125
19.14
13,139,090
Sales Tax @ 15%
Rs.
2.50
Sales Tax Amount
Rs.
1,714,651
Rs.
20.10
20,375,524
Rs.
2.62
Rs. 2,659,006
Rs.
21.10
25,673,161
Rs.
2.75
Rs. 3,350,347
Rs.
22.16
32,303,626
Rs.
2.89
Rs. 4,215,623
Rs.
Rs.
3.04
Rs. 5,311,685
22
PREF-34/May, 2005/Rev 2
23.26
40,702,568
Rs.
24.43
49,123,789
Rs.
3.19
Rs. 6,410,655
Rs.
25.65
59,316,976
Rs.
3.35
Rs. 7,740,865
Rs.
26.93
71,580,116
Rs.
3.51
Rs. 9,341,205
Rs.
28.28
86,342,950
Rs.
3.69
Rs. 11,267,755
Rs.
29.69
104,194,426
Rs.
3.87
Rs. 13,597,373
Pre-Feasibility Study
CNG Filling Station
9.6 Cost of Sales
Cost of Sales
Rate of Gas
Consumption of Electricity
Rate of Electricity
Maintenance
Annual Increase
Rs.
6.50
0.186 KW
Rs.
6.92
Rs.
0.25
10%
Year 1
No. of Cars / day
202 Cars
Annual Gas Sold (in M3)
686,473
Electricity Consumed in KWH
127,684
Rate of Gas
Rs.
6.50
Rate of Electricity
Rs.
6.92
Cost of Sales
Cost of Gas Sold
4,462,074
Cost of Electricity
883,062
Maintenance
171,618
Cost of Sales
5,516,754
/Cubic Meter
/Cubic Meter
/KWHr
/Cubic Meter
Year 2
303 Cars
1,013,859
188,578
Rs.
7.15
Rs.
7.61
Year 3
363 Cars
1,216,631
226,293
Rs.
7.87
Rs.
8.37
Year 4
435 Cars
1,457,946
271,178
Rs.
8.65
Rs.
9.21
Year 5
522 Cars
1,749,535
325,414
Rs.
9.52
Rs.
10.13
Year6
600 Cars
2,010,960
374,039
Rs.
10.47
Rs.
11.14
Year 7
690 Cars
2,312,604
430,144
Rs.
11.52
Rs.
12.25
Year 8
793 Cars
2,657,819
494,354
Rs.
12.67
Rs.
13.48
Year 9
911 Cars
3,053,308
567,915
Rs.
13.93
Rs.
14.83
Year 10
1047 Cars
3,509,125
652,697
Rs.
15.33
Rs.
16.31
7,249,092
1,434,624
253,465
9,568,801
1,893,704
304,158
12,613,420
2,496,246
364,487
16,649,714
3,295,045
437,384
21,051,363
4,166,149
502,740
26,629,974
5,270,178
578,151
33,665,690
6,662,575
664,455
42,542,734
8,419,377
763,327
53,783,169
10,643,904
877,281
8,937,181
11,766,663
15,474,153
20,382,143
25,720,252
32,478,303
40,992,720
51,725,438
65,304,354
23
PREF-34/May, 2005/Rev 2
Pre-Feasibility Study
CNG Filling Station
9.7 Working Capital
Working Capital
1
Total No. of Days
360
Current Assets
Basis
Receivables
Sales
Advances to Employees
Stores & Spares Stock
Payroll+Benefits
2
3
4
5
6
7
8
9
10
Days
25
793,364
1,230,314
1,550,195
1,950,556
2,457,700
2,966,190
3,581,674
4,322,147
5,213,555
6,291,462
30
87,450
96,195
105,815
116,396
128,036
140,839
154,923
170,415
187,457
206,203
-
-
-
TOTAL CURRENT ASSETS
880,814
1,326,509
1,656,010
2,066,952
2,585,736
3,107,029
3,736,597
4,492,562
5,401,012
6,497,665
Current Liabilities
Accrued Utilities & Power
Expenses
Utilities Expenses
20
10,000
11,000
12,100
13,310
14,641
16,105
17,716
19,487
21,436
23,579
Accounts Payable
Cost of Gas & Electricity
20
296,952
482,429
636,806
839,426
1,108,042
1,400,973
1,772,231
2,240,459
2,831,228
3,579,282
Sales Tax Payable
Sales Tax
14
66,681
103,406
130,291
163,941
206,566
249,303
301,034
363,269
438,190
528,787
TOTAL CURRENT LIABILITIES
373,633
596,834
779,197
1,016,677
1,329,249
1,666,381
2,090,980
2,623,215
3,290,855
4,131,648
NET WORKING CAPITAL
507,181
729,674
876,813
1,050,275
1,256,487
1,440,648
1,645,617
1,869,346
2,110,157
2,366,017
24
PREF-34/May, 2005/Rev 2
Pre-Feasibility Study
CNG Filling Station
9.8 Ratio Analysis
Ratio Analysis
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Profitability Ratios
Gross Profit
51.71%
49.55%
47.29%
44.91%
42.41%
39.78%
37.03%
34.14%
31.10%
27.92%
Operating Profit
23.85%
31.48%
32.72%
33.05%
32.25%
31.29%
29.69%
27.75%
25.51%
22.99%
Net Profit before tax
14.32%
21.03%
26.38%
29.56%
30.71%
31.03%
29.69%
27.75%
25.51%
22.99%
Profit after Tax
13.82%
18.28%
16.85%
18.96%
19.85%
20.06%
19.19%
17.94%
16.50%
14.87%
5.01%
10.16%
11.50%
15.15%
17.84%
18.34%
17.35%
16.24%
15.14%
14.02%
Return on Investment (ROI)
Return on Equity (ROE)
Earning per Share (EPS)
Dividend per Share
9.21%
15.89%
Rs. 1.05
Rs. 2.39
Rs. -
Rs. -
15.58%
Rs.
3.78
Rs. -
18.07%
Rs.
5.33
Rs. -
19.25%
Rs.
6.98
Rs. -
19.01%
Rs.
8.52
Rs. -
18.01%
Rs.
9.84
Rs. -
16.89%
Rs. 11.10
Rs. -
15.78%
Rs. 12.30
Rs. -
14.65%
Rs. 13.38
Rs. -
Liquidity Ratios
Current Ratio
6.52
6.43
7.24
8.83
9.50
12.43
15.16
16.77
17.50
17.52
Debt Ratios
Debt Ratio (of total assets)
Debt Equity
Interest Coverage Ratio
44.44%
34.18%
23.80%
13.28%
3.95%
0.00%
0.00%
0.00%
0.00%
0.00%
81.7%
53.5%
32.2%
15.8%
4.3%
0.0%
0.0%
0.0%
0.0%
0.0%
2.50
3.01
5.16
9.47
20.95
122.67
0.00
0.00
0.00
0.00
25
PREF-34/May, 2005/Rev 2
Pre-Feasibility Study
CNG Filling Station
10 REQUIREMENT FOR THE LICENSE
26
PREF-34/May, 2005/Rev 2
Pre-Feasibility Study
CNG Filling Station
27
PREF-34/May, 2005/Rev 2
Pre-Feasibility Study
Annexure 10
CNG Filling Station
Requirement for the License
28
PREF-34/May, 2005/Rev 2
Pre-Feasibility Study
CNG Filling Station
29
PREF-34/May, 2005/Rev 2