Green Industries

8/2/2019 Green Industries

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GREENINDUSTRIES

2012

Business Plan

Plastic Recycling plant

Apoorva Doshi (65185)

Mohammed Oovais(66211)


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Industry Overview:

In the last few decades, the Indian Plastic industry has been a leading sector in the country with thesizable base. The material is gaining notable importance in different spheres of activity and percapita consumption is increasing at a fast pace. Continuous advancements and developments inpolymer technology, processing machineries, expertise and cost effective manufacturing is fastreplacing the typical materials in different segments with plastics.

The turnover of the plastic industry has touched 1000 billion rupees in 2012 on the basis of theexpected growth of the demand potential to 12.5 million tons from the current 9 million tonnes.Theconsumption per capita of the industry is 2.5times of the countrys GDP. The consumption of thefresh granules is 5.3 million metric tonnages in 2011. There are more than 25000 players in thisprocessing industry. The study shows that the industry hires currently 4 million people in 2012 andexpected to hire 7 million people in 2015.

The one critical factor about the Indian plastic industry is the common perception that plastic is notenvironmentally friendly. This primarily is due to the low awareness about the energy savingproperty of plastics and the benefits to industries that utilize the plastics. India has the lowest percapita consumption in the world and the highest recycler of plastics. In India, we recycle 60%fromboth industry and the urban waste as compared to the world average 20-25%.

When compared to the plastic manufacturing firm, a plastic recycling firm can employ approximately7 times more people. As well India is concerned; Indians require more employment opportunitiesalso. As the plastic recycling also contributes a good will to the environment and this industrydefinitely has a good future.

MISSION

People believe in making it from Rags to Riches . We believe in making it from Scrap to Riches .


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OBJECTIVES

To provide quality packaging products. To provide quality services in the packing materials and moving business. To ensure safety and timely delivery of our goods. To provide excellent services at affordable price and in meeting the time constraints of the

clients.

USP of the company

Incentives from the government in the form of land, Export rebate and duties and taxes. Quality of scrap Availability of segregated scrap resulting in reduced cost of production.

How will it work???


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1) Collection of waste plastic It is the process of collecting the plastic waste that has alreadybeen used before. We buy pickup or pay freight for multi truck load, full truck load and half truckload quantities in the eastern states where there is less demand and we provide

regularly scheduled volume pickups free of charge in the southern parts of India.2) Recycled the Plastic After collecting the waste we recycled the waste plastics and /or

plastic materials into useful products like toys, bottles etc. There exists different processesand techniques used for the processing the plastic. There exist huge machines andequipments that are used in the plastic processing technology.

3) Producing Recycled granules Granules are the raw material to manufacture the plastics.There are different forms of granules and in 24 colours that are available with us. We canalso provide special colour or different coloured granules to produce special effects. Allcolours are whether proof and resistant to ageing and UV rays.

4) Marketing in India we can market our plastic granules in the southern states likeHyderabad, madras, Bangalore, Goa, Kodai kanal, etc. New Delhi there is lesser demand ascompared to southern states.


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There is highly demand of plastics in India. As compared to plastic manufacturing firm Plasticrecycling firm can employ approx. 7 times more people. Also Indians require more employmentopportunities.

The growth rate of Indian Plastic industry is 16% per annum. The PlastIndia Foundation estimate that

plastics consumption is likely to reach 16 kg per head by 2015.Since 2012 Government of Indiaallowed FDI in retail sector. The demand for recycled plastics is huge (an estimation 47%) especiallyfor commodity plastics such as PP, PET, PS, LPDE and HDPE.

5) Enjoying profits

Total Start up cost of the project in year 0 is Rs 15, 00,000 /- which would be shared by two partnersequally. (Exhibit 11)

Profit of the company arises after the second year of Rs 7, 52,514/- (150000*5.02) (Exhibit 13)

For cash flow and other financial key points refer Exhibits


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Potential Target Customers

SWOT Analysis

Strengths

High potential market of plastic waste recycling in India

Low Competition due to

Equipment cost are high and industry specific and resulting in high exit cost. Limited supply of raw materials

High Availability of plastics scraps in India

High Availability of clients in India

Weaknesses

High ship transportation cost

Delay in generating customer

Opportunities

High demand of plastic granules in India

Government Funding in terms of subsidies and reduction in legal formalities


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Threats

Shortage of skilled labour

Time between order and delivery period is variable.


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Exhibits:

Exhibit 1:

Green IndustriesRevenue Projections

Years 1 to 5

(Rs)

Year 1 Year 2 Year 3 Year 4 Year 5

Product A

Number of Units 20,000 75,000 1,50,000 2,50,000 4,00,000

Price per unit 50 50 45 45 40

Total 10,00,000 37,50,000 67,50,000 1,12,50,000 1,60,00,000

Service B

Number of Customers 50,000 1,00,000 2,00,000 5,00,000Fee per Customer 30 30 25 20

Total 0 15,00,000 30,00,000 50,00,000 1,00,00,000

Net Revenue 10,00,000 52,50,000 97,50,000 1,62,50,000 2,60,00,000


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Exhibit 2:

Green IndustriesCost of Revenues

Years 1 to 5(Rs)


Revenue 10,00,000 52,50,000 97,50,000 1,62,50,000 2,60,00,000

Cost of Revenue

Product A

Material Costs per Unit 15.00 14.00 11.00 10.00 9.00

Subcontract Costs per Unit 10.00 10.00 7.00 6.50 6.00Total Direct Costs per Unit 25.00 24.00 18.00 16.50 15.00

Unit Sales 20,000 75,000 1,50,000 2,50,000 4,00,000

Total Direct Costs 5,00,000 18,00,000 27,00,000 41,25,000 60,00,000

Labor Costs 69,000 2,27,700 5,52,000 8,64,000 12,00,000

Total Direct Costs 5,69,000 20,27,700 32,52,000 49,89,000 72,00,000

Service B

Service Personnel Costs 1,20,750 2,12,750 4,80,000 15,00,000 27,50,000

Other Expenses

Salary Expenses 2,76,000 6,90,000 9,90,000 14,10,000 20,00,000

Depreciation 36,714 91,714 1,37,429 1,90,286 2,43,143

Facility costs (rent, energy) 50,000 2,00,000 3,00,000 3,00,000 4,50,000

System Costs 25,000 1,00,000 1,50,000 3,00,000 3,50,000

All other costs % of Revenue 4% 40,000 2,10,000 3,90,000 6,50,000 10,40,000

Total Cost of Revenues 11,17,464 35,32,164 56,99,429 93,39,286 1,40,33,143

% of Revenue 111.7% 67.3% 58.5% 57.5% 54.0%

Allocation of Cost of Revenue between:

Variable 7,29,750 24,50,450 41,22,000 71,39,000 1,09,90,000

Fixed 3,87,714 10,81,714 15,77,429 22,00,286 30,43,143

Total 11,17,464 35,32,164 56,99,429 93,39,286 1,40,33,143


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Exhibit 3:

Green IndustriesOperating Expenses

Years 1 to 5(Rs)


Net Revenues 10,00,000 52,50,000 97,50,000 1,62,50,000 2,60,00,000

Sales & Marketing

Drivers

Salaries and Benefits 69,000 2,70,250 4,32,900 6,24,000 8,16,000

Commissions % of Revenue 5% 50,000 2,62,500 4,87,500 8,12,500 13,00,000

Direct Mail Campaign 50,000 1,50,000 3,00,000 5,00,000 10,00,000

All other expenses % of Revenue 6% 60,000 3,15,000 5,85,000 9,75,000 15,60,000

Total Sales and Marketing 2,29,000 9,97,750 18,05,400 29,11,500 46,76,000

% of Revenue 22.9% 19.0% 18.5% 17.9% 18.0%

Research & Development

Drivers

Salaries and Benefits 69,000 1,95,500 3,10,050 5,04,000 6,72,000

Testing 50,000 60,000 1,00,000 2,50,000 3,00,000


Total Reaserch & Development 1,49,000 4,13,000 7,02,550 12,41,500 17,52,000

% of Revenue 14.9% 7.9% 7.2% 7.6% 6.7%

General & Administration

Drivers

Salaries and Benefits 1,25,000 3,00,150 3,88,440 5,73,600 7,84,800

Depreciation 6,667 40,000 1,06,667 1,83,333 2,66,667

Rent and Utilities 20,000 20,000 1,00,000 1,10,000 2,00,000


Total General & Administration 1,71,667 4,65,150 7,90,107 11,91,933 17,71,467

% of Revenue 17.2% 8.9% 8.1% 7.3% 6.8%

Total Operating Expenses 5,49,667 18,75,900 32,98,057 53,44,933 81,99,467

% of Revenue 55.0% 35.7% 33.8% 32.9% 31.5%

Allocation of Operating Expenses between:


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Vaiable 1,60,000 8,40,000 15,60,000 26,00,000 41,60,000

Fixed 3,89,667 10,35,900 17,38,057 27,44,933 40,39,467

Total 5,49,667 18,75,900 32,98,057 53,44,933 81,99,467

Exhibit 4:

Green IndustriesPersonnel

Years 1 to 5(Rs)


Net Revenues 10,00,000 52,50,000 97,50,000 1,62,50,000 2,60,00,000

Sales & Marketing

Sales Manager 60,000 80,000 1,00,000 1,25,000 1,50,000

Marketing Manager 80,000 1,00,000 1,25,000 1,50,000

Customer service 40,000 1,20,000 2,00,000 2,50,000

Tech support 35,000 50,000 70,000 1,30,000

Total Salary 60,000 2,35,000 3,70,000 5,20,000 6,80,000

Benefits

Percent (%) 15% 15% 17% 20% 20%

Total benefit costs 9,000 35,250 62,900 1,04,000 1,36,000

Total S & M Compensation 69,000 2,70,250 4,32,900 6,24,000 8,16,000

% of Revenue 6.9% 5.1% 4.4% 3.8% 3.1%

Research and Development

R & D Manager 80,000 1,00,000 1,25,000 1,50,000

Engineers 60,000 60,000 1,30,000 2,30,000 3,00,000

Technicians 30,000 35,000 65,000 1,10,000

Subcontract

Total Salary 60,000 1,70,000 2,65,000 4,20,000 5,60,000

Benefits

Percent (%) 15% 15% 17% 20% 20%

Total benefit costs 9,000 25,500 45,050 84,000 1,12,000

Total R & D Compensation 69,000 1,95,500 3,10,050 5,04,000 6,72,000

% of Revenue 6.9% 3.7% 3.2% 3.1% 2.6%

General & Administration

Chief Executive Officer 60,000 80,000 1,00,000 1,25,000 1,50,000

Chief Financial Officer 50,000 60,000 75,000 1,00,000


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Accounting 40,000 45,000 25,000 50,000 75,000

Secretarial 25,000 26,000 27,000 28,000 29,000

Clerks and admin personnel 60,000 1,20,000 2,00,000 3,00,000

Total Salary 1,25,000 2,61,000 3,32,000 4,78,000 6,54,000Benefits

Percent (%) 15% 15% 17% 20% 20%

Total benefit costs 0 39,150 56,440 95,600 1,30,800

Total G & A Compensation 1,25,000 3,00,150 3,88,440 5,73,600 7,84,800

% of Revenue 12.5% 5.7% 4.0% 3.5% 3.0%

Cost of Revenue

Manufacturing Personnel

Operations Manager 1,00,000 1,25,000 1,50,000 1,75,000 2,00,000

Quality Assurance 50,000 1,00,000 1,50,000 3,00,000 3,50,000

Materials and Logistics 40,000 1,50,000 2,00,000 3,00,000 4,50,000

Engineering 75,000 1,25,000 1,50,000 3,00,000

Other personnel 50,000 1,50,000 2,00,000 2,50,000 3,00,000

Total Salary 2,40,000 6,00,000 8,25,000 11,75,000 16,00,000

Benefits

Percent (%) 15% 15% 20% 20% 25%

Total benefit costs 36,000 90,000 1,65,000 2,35,000 4,00,000

Total Salary Costs 2,76,000 6,90,000 9,90,000 14,10,000 20,00,000

Hourly Personnel

Number of employees 3 9 20 30 40

Average wages per employee 20,000 22,000 23,000 24,000 24,000

Total wages 60,000 1,98,000 4,60,000 7,20,000 9,60,000

Benefits

Percent (%) 15% 15% 20% 20% 25%


Total Wage Costs 69,000 2,27,700 5,52,000 8,64,000 12,00,000

Service Personnel

Number of employees 3 5 10 25 40

Salary per employee 35,000 37,000 40,000 50,000 55,000

Total salaries 1,05,000 1,85,000 4,00,000 12,50,000 22,00,000

Benefits

Percent (%) 15% 15% 20% 20% 25%


Total Salary Costs 1,20,750 2,12,750 4,80,000 15,00,000 27,50,000

Total COR's Compensation 4,65,750 11,30,450 20,22,000 37,74,000 59,50,000% of Revenue 46.6% 21.5% 20.7% 23.2% 22.9%


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Total Salary & Wages 5,45,000 14,64,000 22,52,000 33,13,000 44,54,000

Total Benefits 63,000 2,19,600 4,21,390 6,62,600 10,18,800

Total Compensation 7,28,750 18,96,350 31,53,390 54,75,600 82,22,800

% of Revenue 72.9% 36.1% 32.3% 33.7% 31.6%

Exhibit 5:

Green IndustriesExtraordinary Income & Expense

Years 1 to 5

(Rs)Year 1 Year 2 Year 3 Year 4 Year 5

Income(Item) 0

Total 0 0 0 0 0

Start-up expenses

Legal 25,000

Relocation 20,000

Total 45,000 0 0 0 0

Total Extraordinary Income/(Expense) -45,000 0 0 0 0

Exhibit 6:

Green IndustriesTaxes

Years 1 to 5

(Rs)


Net Revenues 10,00,000 52,50,000 97,50,000 1,62,50,000 2,60,00,000

Income Tax (Rate Federal & State) 0.40 0.40 0.40 0.40 0.40

Net Earnings Before Taxes -7,12,131 -2,18,064 7,04,515 15,20,781 37,53,390

Cumulative -7,12,131 -9,30,195 -2,25,681 12,95,100 50,48,491

Taxes 0 0 0 -5,18,040 -15,01,356

Percent of Revenues 0.0% 0.0% 0.0% -3.2% -5.8%


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Exhibit 7:

Green IndustriesProperty and Equipment

Years 1 to 5

(Rs)Year

0Year

1Year

2Year

3Year

4Year

5Purchased

Net RevenuesAsset

s10,00

,00052,50

,00097,50

,0001,62,50,000

2,60,00,000

Capital Expenditures

Computers, Software & Office Equipment20,00

01,00,

0002,00,

0002,50,0

003,50,0

00

Plant & Equipment2,50,

0003,50,

0002,50,

0003,00,0

003,00,0

00

Other10,00

050,00

01,00,

0001,00,0

001,00,0

00

Total Capital Expenditures 02,80,

0005,00,

0005,50,

0006,50,0

007,50,0

00

% of Revenue28.0

% 9.5% 5.6% 4.0% 2.9%

Depreciation Computers, Sofware & Office Equipment(allocated to General & Administrative Expenses)

Depreciation Rate: Years 1 3 3 3 3 3

Year 0 0 0 0 0 0

Year 1 6,667 6,667 6,667 0 0

Year 2

33,33

3

33,33

3 33,333 0

Year 366,66

7 66,667 66,667

Year 4 83,333 83,333

Year 51,16,6

67

Total Depreciation 6,66740,00

01,06,

6671,83,3

332,66,6

67

Depreciation on Plant and Equipment (allocated to Cost ofRevenue)

Depreciation Rate: Years 1 7 7 7 7 7

Year 0 0 0 0 0 0

Year 1 35,714 35,714 35,714 35,714 35,714

Year 250,00

050,00

0 50,000 50,000

Year 335,71

4 35,714 35,714

Year 4 42,857 42,857

Year 5 42,857

Total Depreciation 35,71

485,71

41,21,

4291,64,2

862,07,1

43

Depreciation Other (allocated to Cost of Revenue)

Depreciation Rate: Years 1 10 10 10 10 10Year 0 0 0 0 0 0


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Year 1 1,000 1,000 1,000 1,000 1,000

Year 2 5,000 5,000 5,000 5,000

Year 310,00

0 10,000 10,000

Year 4 10,000 10,000

Year 5 10,000

Total Depreciation 1,000 6,00016,00

0 26,000 36,000

Total Depreciation43,38

11,31,

7142,44,

0953,73,6

195,09,8

10

% of Revenue 4.3% 2.5% 2.5% 2.3% 2.0%

Property & Equipment

Gross Asset Value 02,80,

0007,80,

00013,30

,00019,80,

00027,30,

000

Accumulated Depreciation43,38

11,75,

0954,19,

1907,92,8

1013,02,

619

Net Property and Equipment 02,36,

6196,04,

9059,10,

81011,87,

19014,27,

381

% of Revenue23.7

%11.5

% 9.3% 7.3% 5.5%


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Exhibit 8:

Green IndustriesWorking Capital

Years 1 to 5

(Rs)


Net Revenues 10,00,000 52,50,000 97,50,000 1,62,50,000 2,60,00,000

Accounts Receivable

% of Revenue 8.3% 8.3% 8.3% 8.3% 8.3%

Days Outstanding 30 30 30 30 30

Accounts Receivable 1,49,400 6,27,480 9,13,000 15,77,000 26,56,000

(Increase)/Decrease from Prev. Period -1,49,400 -4,78,080 -2,85,520 -6,64,000 -10,79,000

Inventory

% of Revenue 8.3% 8.3% 6.7% 6.7% 6.7%

Inventory Turns 12 12 15 15 15

Inventory Days 30 30 24 24 24

Inventory 1,49,400 6,27,480 7,37,000 12,73,000 21,44,000

(Increase)/Decrease from Prev. Period -1,49,400 -4,78,080 -1,09,520 -5,36,000 -8,71,000

Other Current Assets

% of Revenue 1.0% 1.0% 1.0% 1.0% 1.0%

Days 4 4 4 4 4

Other CA Value 18,000 75,600 1,10,000 1,90,000 3,20,000

(Increase)/Decrease from Prev. Period -18,000 -57,600 -34,400 -80,000 -1,30,000

Accounts Payable & Accrued Expenses

% of Revenue 8.7% 8.7% 8.7% 8.7% 8.7%

Days 31 31 31 31 31

AP & Accrued Value 1,55,720 6,57,720 9,57,000 16,53,000 27,84,000

Increase/(Decrease) from Prev. Period 1,55,720 5,02,000 2,99,280 6,96,000 11,31,000

Other Current Liabilites

% of Revenue 1.0% 1.0% 1.0% 1.0% 1.0%

Days 4 4 4 4 4

Other Current Liabilities 18,000 75,600 1,10,000 1,90,000 3,20,000

Increase/(Decrease) from Prev. Period 18,000 57,600 34,400 80,000 1,30,000


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Exhibit 9:

Green IndustriesFunding Projections

Years 1 to 5

(Rs)

Begin Year 1 Year 2 Year 3 Year 4 Year 5

Beginning Cash 15,00,000

Equity

Common 5,00,000 5,00,000 5,00,000 5,00,000 5,00,000 5,00,000Increase / (Decrease) Previous

Period 0 0 0 0 0

Preferred

A Round 10,00,000 10,00,000 10,00,000 10,00,000 10,00,000 10,00,000

B Round 5,00,000 5,00,000 5,00,000 5,00,000

Total Preferred 10,00,000 10,00,000 15,00,000 15,00,000 15,00,000 15,00,000Increase / (Decrease) Previous

Period 0 5,00,000 0 0 0

Total Equity 15,00,000 15,00,000 20,00,000 20,00,000 20,00,000 20,00,000

Debt

Short Term Debt 1,00,000Increase / (Decrease) Previous

Period 0 0 0 1,00,000 -1,00,000

Long Term Debt

Current Portion 1,00,000 1,00,000 1,00,000 1,00,000

Long Term Portion 4,00,000 3,00,000 2,00,000 1,00,000

Total Long Term Debt 0 5,00,000 4,00,000 3,00,000 2,00,000

Increase / (Decrease) PreviousPeriod

Current Portion 0 1,00,000 0 0 0

Long Term Protion 0 4,00,000 -1,00,000 -1,00,000 -1,00,000

Total Long Term Debt 0 5,00,000 -1,00,000 -1,00,000 -1,00,000

Total Equity & Debt 15,00,000 15,00,000 25,00,000 24,00,000 24,00,000 22,00,000

Interest

Interest Rate

Short Term Debt 9.0% 9.0% 9.0% 9.0% 9.0%

Long Term Debt 12.0% 12.0% 12.0% 12.0% 12.0%

Interest Expense

Short Term Debt 0 0 0 9,000 0

Long Term Debt 0 60,000 48,000 36,000 24,000

Total Interest 0 60,000 48,000 45,000 24,000


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Interest Income

Interest Rate 4.0% 4.0% 4.0% 4.0% 4.0%

Interest Income 0 0 0 0 10,000

Retained Earnings

Net Income -7,12,131 -2,18,064 7,04,515 10,02,741 22,52,034

Dividends 50,000Increase / (Decrease) Retained

Earnings -7,12,131 -2,18,064 7,04,515 10,02,741 22,02,034

Beginning Retained Earnings 0 -7,12,131 -9,30,195 -2,25,681 7,77,060

Ending Retained Earnings -7,12,131 -9,30,195 -2,25,681 7,77,060 29,79,094


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Exhibit 10:

Green IndustriesIncome Statement

Years 1 to 5

(Rs)Year 1 Year 2 Year 3 Year 4 Year 5

NET REVENUES 10,00,000 52,50,000 97,50,000 1,62,50,000 2,60,00,000

COST OF REVENUE 11,17,464 35,32,164 56,99,429 93,39,286 1,40,33,143

% of Revenues 111.7% 67.3% 58.5% 57.5% 54.0%

GROSS PROFIT -1,17,464 17,17,836 40,50,571 69,10,714 1,19,66,857

% of Revenues -11.7% 32.7% 41.5% 42.5% 46.0%

OPERATING EXPENSES

Sales & Marketing 2,29,000 9,97,750 18,05,400 29,11,500 46,76,000

Research & Development 1,49,000 4,13,000 7,02,550 12,41,500 17,52,000

General and Administration 1,71,667 4,65,150 7,90,107 11,91,933 17,71,467

Total Operating Expenses 5,49,667 18,75,900 32,98,057 53,44,933 81,99,467

% of Revenues 55% 36% 34% 33% 32%

EARNINGS FROM OPERATIONS -6,67,131 -1,58,064 7,52,515 15,65,781 37,67,390

EXTRAORDINARY INCOME / (EXPENSE) -45,000 0 0 0 0

EARNINGS BEFORE INTEREST & TAXES -7,12,131 -1,58,064 7,52,515 15,65,781 37,67,390

INTEREST INCOME / (EXPENSE) 0 -60,000 -48,000 -45,000 -14,000

NET EARNINGS BEFORE TAXES -7,12,131 -2,18,064 7,04,515 15,20,781 37,53,390

TAXES 0 0 0 -5,18,040 -15,01,356

NET EARNINGS -7,12,131 -2,18,064 7,04,515 10,02,741 22,52,034

% of Revenues -71.2% -4.2% 7.2% 6.2% 8.7%


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Exhibit 11:

Green IndustriesBalance Sheet

Years 1 to 5

Rs

Begin Year 1 Year 2 Year 3 Year 4 Year 5

ASSETS

CURRENT ASSETS

Cash 15,00,000 4,08,170 3,67,660 5,70,510 7,92,870 17,35,714

Accounts Receivable 1,49,400 6,27,480 9,13,000 15,77,000 26,56,000

Inventories 1,49,400 6,27,480 7,37,000 12,73,000 21,44,000

Other Current Assets 18,000 75,600 1,10,000 1,90,000 3,20,000

Total Current Assets 15,00,000 7,24,970 16,98,220 23,30,510 38,32,870 68,55,714

PROPERTY & EQUIPMENT 0 2,36,619 6,04,905 9,10,810 11,87,190 14,27,381

TOTAL ASSETS 15,00,000 9,61,589 23,03,125 32,41,319 50,20,060 82,83,094

LIABILITIES & SHAREHOLDERS' EQUITY

CURRENT LIABILITIES

Short Term Debt 0 0 0 0 1,00,000 0

Accounts Payable & Accrued Expen 1,55,720 6,57,720 9,57,000 16,53,000 27,84,000

Other Current Liab 18,000 75,600 1,10,000 1,90,000 3,20,000

Current portion of long term debt 0 0 1,00,000 1,00,000 1,00,000 1,00,000

Total Current Liabilities 0 1,73,720 8,33,320 11,67,000 20,43,000 32,04,000

LONG TERM DEBT (less current portion) 0 0 4,00,000 3,00,000 2,00,000 1,00,000

STOCKHOLDERS' EQUITY

CommonStock 5,00,000 5,00,000 5,00,000 5,00,000 5,00,000 5,00,000

Preferred Stock 10,00,000 10,00,000 15,00,000 15,00,000 15,00,000 15,00,000

Retained Earnings -7,12,131 -9,30,195 -2,25,681 7,77,060 29,79,094

Total Equity 15,00,000 7,87,869 10,69,805 17,74,319 27,77,060 49,79,094

TOTAL LIABILITIES & EQUITY 15,00,000 9,61,589 23,03,125 32,41,319 50,20,060 82,83,094


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Exhibit 12:

Green IndustriesCash Flow Statememt

Years 1 to 5

(Rs)


OPERATING ACTIVITIES

Net Earnings -7,12,131 -2,18,064 7,04,51510,02,74

1 22,52,034

Depreciation 43,381 1,31,714 2,44,095 3,73,619 5,09,810

Working Capital Changes

(Increase)/Decrease Accounts Receivable -1,49,400 -4,78,080-

2,85,520 -6,64,000-

10,79,000

(Increase)/Decrease Inventories -1,49,400 -4,78,080-

1,09,520 -5,36,000 -8,71,000

(Increase)/Decrease Other Current Assets -18,000 -57,600 -34,400 -80,000 -1,30,000Increase/(Decrease) Accts Pay & Accrd

Expenses 1,55,720 5,02,000 2,99,280 6,96,000 11,31,000

Increase/(Decrease) Other Current Liab 18,000 57,600 34,400 80,000 1,30,000Net Cash Provided/(Used) by Operating

Activities -8,11,830 -5,40,510 8,52,850 8,72,360 19,42,844

INVESTING ACTIVITIES

Property & Equipment -2,80,000 -5,00,000-

5,50,000 -6,50,000 -7,50,000

Other

Net Cash Used in Investing Activities -2,80,000 -5,00,000-

5,50,000 -6,50,000 -7,50,000

FINANCING ACTIVITIES

Increase/(Decrease) Short Term Debt 0 0 0 1,00,000 -1,00,000

Increase/(Decrease) Curr. Portion LTD 0 1,00,000 0 0 0

Increase/(Decrease) Long Term Debt 0 4,00,000-

1,00,000 -1,00,000 -1,00,000

Increase/(Decrease) Common Stock 0 0 0 0 0

Increase/(Decrease) Preferred Stock 0 5,00,000 0 0 0

Dividends Declared 0 0 0 0 -50,000

Net Cash Provided / (Used) by Financing 010,00,00

0-

1,00,000 0 -2,50,000

INCREASE/(DECREASE) IN CASH-

10,91,830 -40,510 2,02,850 2,22,360 9,42,844

CASH AT BEGINNING OF YEAR 15,00,000 4,08,170 3,67,660 5,70,510 7,92,870

CASH AT END OF YEAR15,00,00

0 4,08,170 3,67,660 5,70,510 7,92,870 17,35,714


22/24

Exhibit 13:

Green IndustriesBreak-Even Analysis

Years 1 to 5(Rs)


Revenue 10,00,000 52,50,000 97,50,000 1,62,50,000 2,60,00,000

Cost of Revenue

Variable 7,29,750 24,50,450 41,22,000 71,39,000 1,09,90,000

Fixed 3,87,714 10,81,714 15,77,429 22,00,286 30,43,143

Total 11,17,464 35,32,164 56,99,429 93,39,286 1,40,33,143

Operating Expenses

Variable 1,60,000 8,40,000 15,60,000 26,00,000 41,60,000

Fixed 3,89,667 10,35,900 17,38,057 27,44,933 40,39,467

Total 5,49,667 18,75,900 32,98,057 53,44,933 81,99,467

Total Costs & Expenses

Variable 8,89,750 32,90,450 56,82,000 97,39,000 1,51,50,000

Fixed 7,77,381 21,17,614 33,15,485 49,45,219 70,82,610

Total 16,67,131 54,08,064 89,97,485 1,46,84,219 2,22,32,610

Variable Costs/Revenue Ratio 0.89 0.63 0.58 0.60 0.58

Break-Even Point Revenues 70,51,076 56,73,484 79,46,406 1,23,42,161 1,69,72,152

no of units 20,000 75,000 1,50,000 2,50,000 4,00,000

revenue 10,00,000 52,50,000 97,50,000 1,62,50,000 2,60,00,000

selling price per unit 50 70 65 65 65

cost 16,67,131 54,08,064 89,97,485 1,46,84,219 2,22,32,610

cost per unit 83.35655512 72.10752381 59.98323492 58.73687619 55.58152381profit per unit -33.35655512 -2.10752381 5.016765079 6.26312381 9.41847619


23/24

Exhibit 14:

Green IndustriesSummary

Years 1 to 5


Summary Financials (Rs)

Revenue 10,00,000 52,50,000 97,50,000 1,62,50,000 2,60,00,000

Gross Profit -1,17,464 17,17,836 40,50,571 69,10,714 1,19,66,857

EBIT -7,12,131 -1,58,064 7,52,515 15,65,781 37,67,390

EBITDA -6,68,750 -26,350 9,96,610 19,39,400 42,77,200

Net Earnings -7,12,131 -2,18,064 7,04,515 10,02,741 22,52,034

Net Cash from Operating Activities -8,11,830 -5,40,510 8,52,850 8,72,360 19,42,844

Capital Expenditures 2,80,000 5,00,000 5,50,000 6,50,000 7,50,000Interest Income/(Expense) 0 -60,000 -48,000 -45,000 -14,000

Dividends 0 0 0 0 50,000

Cash 4,08,170 3,67,660 5,70,510 7,92,870 17,35,714

Total Equity -2,12,131 -4,30,195 2,74,319 12,77,060 34,79,094

Total Debt 0 5,00,000 4,00,000 3,00,000 2,00,000

Growth

Revenue Growth Rate - CAGR: 425% 86% 67% 60%

Net Earnings Growth Rate - CAGR: Nil Nil 42.3% 124.6%

Ratios

Current Ratio 4.2 2.0 2.0 1.9 2.1

Debt to Capital (LT Debt + Equity) 0.0 0.3 0.2 0.1 0.0

Profitability

Gross Profit % -11.7% 32.7% 41.5% 42.5% 46.0%

Operating Expenses % 55.0% 35.7% 33.8% 32.9% 31.5%

Net Earnings % -71.2% -4.2% 7.2% 6.2% 8.7%

Returns

Return on Assets -74.1% -9.5% 21.7% 20.0% 27.2%

Return on Equity -90.4% -20.4% 39.7% 36.1% 45.2%

Return on Capital (LT Debt + Equity) -90.4% -13.9% 32.4% 32.6% 43.5%


24/24

Exhibit 15:

Green IndustriesValuation

Venture Capital MethodYears 1 to 5

Assumptions: REF

InvestorrequiredIRR 60% A

P/Eratio atIPO oracquisition 15 B

Initialinvestment

Rs.15,00,00

0 CFV(A,

C) G/F

IRR(D,G)

REF D E F G H I J K

ValuationCalculation Year

NetIncome

Market

Capitalizati

on

Required

Future

Value(Inves

tor)

Investor's

Share

Investor's

Return

Investor's

ROI

Investor'sIRR

IRRCalculationWorkspace

Calculation

IncomeStm

t B * EFV(F,

D)C / G F * H

I / C

IRR(I,C,D) Start

Y ea r 1

Y ea r 2

Year 3

Year 4

Year 5

LiquidityEvent inYear 1 1

-7,12,131

Rs. -1,06,81,967

Rs.24,00,

000

100.0%

Rs.- 0%

#N/ A

Rs.-15,00,000

Rs.-


-2,18,064

Rs.-

32,70,964

Rs.38,40,

000

100.0%

Rs.- 0%

#N/ A

Rs.-15,00,000

Rs.-

Rs.-


7,04,515

Rs.1,05,67,721

Rs.61,44,

00058.1%

Rs.61,44,000

410%

60%

Rs.-15,00,000

Rs.-

Rs.-

Rs.61,44,000


10,02,74

1

Rs.1,50,41,112

Rs.98,30,

40065.4%

Rs.98,30,400

655%

60%

Rs.-15,00,000

Rs.-

Rs.-

Rs.-

Rs.98,30,400


22,52,03

4

Rs.3,37,80,514

Rs.1,57,28,640

46.6%

Rs.1,57,28,64

01049%

60%

Rs.-15,00,000

Rs.-

Rs.-

Rs.-

Rs.-

Rs.1,57,28,640

Documents

Green Industries