Pre-Feasibility StudyCNG FILLING STATION Small and Medium Enterprises Development Authority Ministry of Industries & Production Government of Pakistan www.smeda.org.pk HEAD OFFICE 4th Floor, Building No. 3, Aiwan-e-Iqbal Complex, Egerton Road, Lahore Tel: (92 42) 111 111 456, Fax: (92 42) 36304926-7
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[email protected] 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. SMEDA does not assume any liability for any financial or other loss resulting from this memorandum in consequence of undertaking this activity. 2002 Revised on May. PREF-34 Revision 2 Prepared by SMEDA-Punjab Issue Date May. 2005 Issued by Library Officer 1 PREF-34/May. 2005/Rev 2 . Although. please contact our website: www. and the actual results may differ substantially from the presented information.smeda. For more information on services offered by SMEDA. 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.pk DOCUMENT CONTROL Document No. 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. All the material included in this document is based on data/information gathered from various sources and is based on certain assumptions.org. which have some bearing on the project itself. 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. A few priority sectors were selected on the criterion of SME presence. These services include identification of viable business opportunities for potential SME investors. Since its inception in October 1998. textiles. The project pre-feasibility may form the basis of an important investment decision and in order to serve this objective. SMEDA provides business guidance through its help desk services as well as development of project specific documents. SMEDA had adopted a sectoral SME development approach. and finance and business management. fruits and vegetables. These documents consist of information required to make wellresearched investment decisions. 2005/Rev 2 . marble and granite. 2 PREF-34/May. Along with the sectoral focus a broad spectrum of business development services is also offered to the SMEs by SMEDA. the document covers various aspects of the business concept development. transport and dairy. leather and footwear. SMEDA has so far successfully formulated strategies for sectors including. The document also provides sectoral information. technology and human resource development. 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. 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 all-encompassing sectoral development strategy involved recommending changes in the regulatory environment by taking into consideration other important aspects including finance. marine fisheries. surgical instruments. brief on government policies and international scenario. This particular pre-feasibility is regarding “CNG Filling Station” which comes under “Petroleum” sector. start-up. marketing. production. This document is in the continuation of this effort to enable potential investors to make well-informed investment decisions. gems and jewelry. In depth research was conducted and comprehensive development plans were formulated after identification of impediments and retardants.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. In order to facilitate these investors. marketing. 2005/Rev 2 . Government has exempted the imposition of sales tax and custom duties on the import of CNG kits and CNG plant and equipment. a non-profitable organization working under the umbrella of Ministry of Petroleum and Natural Resources. The daily turnover of the cars largely depends on this important factor. This growth has opened up new opportunities and more CNG filling stations are being setup all over Pakistan. HDIP has pioneered the use of environment friendly CNG in road transport as an economically viable fuel. Hydrocarbon Development Institute of Pakistan (HDIP) has recognized the need and necessity to promote the use of CNG as a fuel in automobiles. The prime reason for this is the low cost of the fuel. 3. 3 PREF-34/May. 3. Along with that. HDIP. provides consultancy services to the interested parties for setting up the CNG filling stations. Selection of proper equipment is another key for carrying out the successful operations of the proposed project.2 Project Brief The business of CNG filling station has marked its place in the country through growth during the last few years.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.1 Opportunity Rationale Due to the environment friendly nature and low cost of natural gas.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. which can substitute the imported petroleum products. 4.2 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. CNG fuel is less hazardous to the environment as compared to the traditional petroleum fuel.Pre-Feasibility Study 3 CNG Filling Station CRUCIAL FACTORS & STEPS IN DECISION MAKING FOR INVESTMENT 3. 31. 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. 30.5 Project Cost The cost of project has been estimated as Rs. Due to the efforts made by the Government and comparatively low prices of gas. and over the years. thus spending a huge amount of foreign exchange on import of petroleum products. At present. Due to high cost of petroleum products. 31. The CNG equipment comprises of gas compressor. the usage of CNG as an automobile fuel has significantly increased because of its low cost and environment friendly nature. 377. The people of Pakistan have been using the petroleum products as a fuel in their automobiles. lots of vehicles are switching over to CNG. dual hose dispenser.390 Rs. The project seems to be viable with the following returns on investment. 2005/Rev 2 .Pre-Feasibility Study CNG Filling Station 4. However this composition of debt and equity can be changed as per the requirement of the investor. CNG equipment and office equipment. more than 600. electric control panel. The compressed natural gas has been used as an automobile fuel since 1940. building.530 The proposed pre-feasibility is based on the assumption of 50% debt and 50% equity.31. 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.13 million including land.127.3 Introduction to CNG Natural Gas is one of the most valuable natural resources abundantly available in our country. 4.0. 4.4 Proposed Business Legal Status The proposed legal structure of the business entity is either sole proprietorship or partnership.82 million and Rs. Although selection totally depends upon the choice of the entrepreneur but this financial feasibility is based on a Sole Proprietorship.750.13 million. Preliminary expenses and gas security charges are estimated at Rs. The total project cost for setting up the CNG filling stations has been estimated at Rs. Moreover.140 Rs. In the recent years. civil works. Table 4-1 Project Investment Fixed Investment Working Capital Total Investment Rs. 1 Source: International Association of Natural Gas Vehicles (IANGV) Feb. and storage cascades/cylinders. CNG equipment and machinery.000* vehicles have already been converted to operate on Compressed Natural Gas (CNG) fueling system all over Pakistan. spares. 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. 2005 Statistics 4 PREF-34/May.1.8 million respectively. the technology has been modified and refined. It includes land. 3. Considering the market trends and number of vehicles being converted into CNG fueling system. Twin hose dispenser accompanies this equipment and it handles refueling of two vehicles at a time.7 Proposed Capacity The equipment for CNG filling station that has been considered for preparing this prefeasibility study is of British origin. Link Road. 4.9 CNG Policy The Government of Pakistan has offered number of incentives for encouraging the use of CNG in the country. Lahore Wapda Town. 2005/Rev 2 .1% Rs. This equipment is relatively more efficient and effective of the all types of equipment available in the market. 4. Lahore Johar Town.8 Proposed Location The proposed locations for the CNG Filling stations in Lahore are as follows Multan Road.1% 45. PIA Colony The said project may also be established in commercial area of any other city. The chosen equipment is capable of refueling 50 vehicles per hour. 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. 4.401. initially the project would be able to attract and serve at-least 202 vehicles per day.6 Viable Economic Size A minimum of 202 cars is required to be filled daily in order to operate at breakeven.246 4 years 4. Lahore Model Town.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. Various other types of equipment are also available at a lower price. CNG kits and cylinders 5 PREF-34/May. 2 Market Demand At present there are more than 600. which include the whole range of activities like formation of company. 2005 6 PREF-34/May. 5 MARKET ANALYSIS The commercial application of CNG technology now forms an important element of Government’s petroleum policy.000 vehicles. the trend of converting cars to CNG fueling system has been on a rise. Pakistan is ranked third in the CNG-using countries after Argentina and Brazil. The number of CNG vehicles and CNG filling stations has increased to 210.000 and CNG filling stations was 150 at the end of year 2000.000 vehicles on CNG fueling system till February 2005. legal formalities. and a large number of vehicles are further being converted.1 Target Customers The target customers for the proposed project would be the vehicles running on CNG fuel. etc. specifications of the equipment. Recently. 5. which is reflected in the efforts made by the government for installing 670 CNG stations in the country and converting 600. more than 600. 4. commissioning and supervision.000 vehicles have been converted to CNG and 6702 CNG stations are operational. Apart from these 670 CNG stations. According to International Association for Natural Gas Vehicles (IANGV) statistics. selecting and appointing the contractor. This change has led to enhancing the confidence in the minds of the general public regarding the safety concerns. The total number of vehicles on CNG was 100. design of station. many car manufacturers have started manufacturing the cars with built-in CNG fueling system. selection of site. and so far. many new CNG stations are being setup across the country.10 CNG Consultancy Services HDIP is also offering consultancy services to the investors. 5. 2005/Rev 2 . which have been converted to CNG fuel.Pre-Feasibility Study CNG Filling Station This has provided a boost to the industry. more people are inclined towards purchasing these factory-fitted CNG fueling system cars.000 vehicles 2 As on Feb.3 Market Supply Total number of CNG stations in Pakistan is only 670.4 Industry Growth There has been a tremendous growth in the CNG sector over the yeas. 5. However. there exist a large number of people who were reluctant to convert their vehicles from petrol to gas due to safety concerns. which is quite low for meeting the growing demand of CNG. Due to the increasing prices of petroleum products. 5. training of manpower. selection of equipment. and now. 000 600.100.3 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. 6. 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.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. 6 REGULATIONS. Of Vehicles on CNG 450.000. 6.2 Certificate (by HDIP) After the installation of the required equipment for CNG filling station.000. and once satisfied. will issue a certificate verifying that the installed equipment is up to the required standards. 7 PREF-34/May. 2005/Rev 2 . The cost associated with this license is Rs.000 CNG fitted vehicles. HDIP will inspect the working of the equipment.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. 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. 35.25.000. The cost associated with this certification is Rs. 8 PREF-34/May. 6.38 (1)/98 dated 21st January 1998 has been amended on April 11. 6. 6.5. 2005. so the income tax is payable at the rate of 45%. 2005/Rev 2 . at the rate of 6%. 6.1 Sales Tax The import of CNG equipment is exempted from sales tax vide SRO No. 2002 and the “Quality Certificate” from original manufacturer has been made mandatory.Pre-Feasibility Study CNG Filling Station 6. The current project is being operated as a private limited company.5. The designated third party inspector witnesses this Quality Certificate.6 Income Tax The income of the CNG filling station is not exempted from the income tax. 6.5. The cost of third party inspection is $500.38 (1)/98 dated 21st January 1998 till June.1 Quality Certificate SRO.3 Income Tax on the Import of CNG Equipment Income Tax. The investor has to pay tax on his/her income according to the nature of the business entity.4.5 Regulatory Requirements 6.2 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. is payable by the importer on the import of CNG equipment. This certificate should state that the equipment meets the safety standard as laid down in Pakistan CNG Rules 1992.4 Incentives 6.2 Custom Duty The CNG equipment is also exempted from the custom duties as per the above-referred SRO.4. 100 513.0.040 100.732. 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. ft) Building – Civil Works CNG Equipment Stores & Spares Office Equipment Furniture & Fixtures Gas Security Preliminary Expenses Working Capital Total Rupees 17. 9 PREF-34/May.530 7.15.31.127. location is the prime factor.000 1.13 million including the working capital of Rs.000 85. A comparison of costs of commercial land in various other areas of Lahore is given below for reference purpose.390 31.3.1 Project Cost The details of the cost of project are as follows: Table 7-1 Project Costs Item Land (9. 7.000 1. As per the requirements of the Government of Pakistan.2 Project Financing The total cost of the project is Rs.700. An amount of Rs.000.56 million and the bank will finance the remaining amount of Rs. 2005/Rev 2 .3 Project Details 7. CNG filling stations are not allowed to be installed in the residential areas.15.000 377. 7.000 Sq.000 8.17 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.1 Location For setting up a CNG filling station.000 820.Pre-Feasibility Study 7 CNG Filling Station THE PROJECT CONCEPT 7.800. The sponsors of the project will contribute Rs. the filling station must be situated in a commercial area. 3.56 million.377 million. 000 Total Cost Explosives department has laid down certain specifications for the compressor and cascade/cylinders storage room. The civil works would be carried out on an area of 2250 square feet. PIA Colony Price Range for 9.250 1.000–9.000–35.000. ft.000–10. Peshawar etc. 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. Cost Office.000.000.750 Contingencies 71.000 Rs.000. prices may considerably vary in the other cities like Quetta.000 room.000 Flooring (6. Karachi.Pre-Feasibility Study CNG Filling Station Table 7-2 Approximate Cost of Land in the Proposed Areas Location Gulberg. The rest of the area will be floored with tuff tiles.2.7 million.000. control room. Minimum distance of one meter should be kept between compressor and cascade/cylinders.125. Minimum one meter distance is required between walls and compressor.000. however.18.000 Rs. M.000 In this report. 2.7. Islamabad.ft Rs.ft) 45 303.000 Sq.700. Alam Road. which are as follows: 1.000—32.000–12.000 Rs. 2005/Rev 2 . shed and toilet/washroom (2. 10 PREF-34/May. Hyderabad.000 Rs. 30. prices of commercial land for Lahore city has been considered.000–18. 7. Faisalabad. M.000. Details for the said cost are as follows: Table 7-3 Construction Cost (Amount in Rupees) Description Cost per Sq.000. Multan.000.250 sq.750sq.000.000. Main Boulevard Main Ferozpur Raod Model Town Link Road Multan Road Johar Town.ft) Underground gas piping 200. compressor and cylinder storage 500 1.16.000 Rs. 3. 3 B ui l di ng There are certain civil works required to be carried out at the proposed location.000.1.10. Model: H430H-WL Capacity: 400 m3/hr 4 11 PREF-34/May. Roof of the compressor and storage room should not be of permanent nature4. higher outlet pressure. Electric Control Panel Electric control panel is required to operate the gas compressor. low maintenance. facilitating the refueling of vehicles at a faster rate. longer periods between overhauls and good market repute and presence.35 million is required for obtaining electricity connection.4 Material Inputs There are two main inputs required for the CNG filling station. Bellies & Marcum. There is no security deposit required for the electricity connection.625 PSIG. the equipment can refuel 50 vehicles per hour. In addition to this. 000/-. Priority Panel for Vehicle Priority During rush hours.0. This panel will be mounted in the control room. WAPDA and Sui Northern Gas Pipelines Limited (SNGPL) or Sui Southern Gas Pipelines Limited (SSGPL). CNG Dispenser high flow dual hose Gas is filled into the vehicles with the help of dispenser. The sponsor of the project is required to obtain both the connections from the relevant authorities i. the compressor is directly connected to the dispenser.75. This dual hose dispenser is capable of handling two vehicles at a time. 4. 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. bypassing the storage cascades/cylinders with the help of priority panel. The cost associated with obtaining the gas connection is Rs.3. 2005/Rev 2 . a British origin compressor6 has been selected. one is the natural gas and the other is electricity.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. 7. An amount of Rs. 7. a minimum security deposit of Rs. 5 pounds per square inch gauge pressure 6 Ham worthy Compressor. This compressor requires an input pressure of 8 or 15 PSIG5 from the main gas supply with the outlet pressure of 3.3. With this discharge pressure. Storage Cascade Storage cascades/cylinders are used to store the natural gas. durable working.e. There are various foreign manufacturers providing the CNG filling station equipment. Fire rated walls3 must be used in the compressor and cylinder storage room. UK. This equipment is selected because of its low electricity consumption. Bank guarantee is also acceptable in case of gas security.8million is also required to be deposited with the concerned authority. In this pre-feasibility report.Pre-Feasibility Study CNG Filling Station 3.1. FX-150. USA Sulzer Burckhardt Engg. China Chonqing Air Gas Compressor Factory. CNG vehicle cylinders. SW132-F1-EM. the equipment is delivered within 12 to 16 weeks from the receipt of purchase order and initial payment.20-IFDE-23SE . W3.r.6 Suppliers The Central Board of Revenue (CBR) has specified the list of compressors.8/1-250. The details of this equipment and accessories are available in Annexure # 1. ZW5. CNG machinery & equipment and conversion kits in SRO 38(1)/98. NQSV3 C40111S. Italy 12 PREF-34/May. which has been manufactured to operate at a lower gas pressure. However. Usually. CNG250 ZW-3.5-250JX L-3.56-250.0/1-23. L-2. 7.3. a list of some of the available equipment and machinery is given below: Table 7-4 Supplier’s Name Supplier’s Name Rix Services. 2005/Rev 2 Available Models 2JJS3G-178. Gazpack37 C-75-3. Grimmer Industries. SW90F0. C50214S H430H-WL. NewZealand Unigas NewZealand Compare Mahle GmbH.8/1-250 RHINO PAR-75VE 4-8 RHINO PAR-1-DE 4-82 RHINO-PAR 150DE4-10 Apollo VR-550 5409. All the CNG filling station equipment is foreign manufactured and imported on the specific requirement of the sponsor by the authorized agent. Bellis & Morcom UK Safe s. SW110-F1-EM.Pre-Feasibility Study CNG Filling Station Different gas pressures are available in different areas of Pakistan from the main gas supply line.8/0. Germany Sicom SRL . The pressure of 15 PSIG is not easily available at every location. CNG 125. ZW-5. storage cylinders.2NG.1. 6W5G-150 Gazpack 36.56-250. V130H-WL SW75SE-F1-EM.l Italy Hurricane. UK Norwalk Company Inc. in that situation. L-5/0.9/0. the consumption of electricity increases. New Zealand Compare UK Ltd.65/0. C150-4. Works Switzerland Hamworthy. L-4. L-3/1-250. USA Chengdu Jinxing Chemical Machinery and Equiment Factory.56-250. W-3. 3KX3G-40.1. China Intermech Ltd.45/250JX.56-250. For the convenience of investor.250. Where the gas pressure of 15 PSIG is not available.52/0. The total capacity of the selected equipment is 400M3/Hr with a total power load of 93 KW.EU 650. the model with inlet pressure of 8 PSIG is used. SW110SE-F1-EM. H280H-WL. 35-EM CNG90. 000 72.000 108.500 Total salary per month (Rupees) 240.000 ha been made for acquiring the required office equipment.000 would be purchased. cashier. curtains and fire extinguishers. The details of office equipment are annexed in Annexure # 1.000 6. accountant.000 120. dispenser. fans & lights.85.000 132.500 2.000 10.9 Office Equipment Some office equipment is also required for the proposed project. operators.3. 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.Pre-Feasibility Study CNG Filling Station 7.000 30.500 3. A provision of Rs. The total staff strength would be 13 persons for the two shifts.000 168.1.500 5.3.000 84.500 3.000 4. 2005/Rev 2 Salary per month 20.3.100.8 Furniture and Fixtures Furniture and fixtures mainly include tables. a stock of necessary spare parts worth $8. chairs. sofas. 7. of Employees for two shifts 1 1 1 2 4 2 2 1 13 PREF-34/May. For this purpose. watchman and sweeper. Therefore.4 Manpower Requirement Manpower requirement for the CNG filling station includes manager. 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. 7.000 . carpet. 7. It is estimated that the furniture and fixtures of Rs.000 954.7 Stores & Spares The whole equipment required for setting up a CNG filling station is imported.000 will be imported along with other equipment to maintain a minimum level of spare parts. 6 and 11.1 Inflation Rate 10% inflation rate has been considered while making the projections for cost of sales. One type of cylinder has a capacity of 40 kg and the other has a capacity of 50 kg.2 Gas per Vehicle Currently. Gas of 6. electricity. the CNG cylinders with two different capacities are installed in the CNG fitted cars. the project would be at its maturity stage. 2005/Rev 2 .047 The average number of cars in the first years is estimated at 202 cars per day. it has increased to 303 cars per day.Pre-Feasibility Study 8 CNG Filling Station BASIS FOR FINANCIAL PROJECTIONS 8..2. A weighted average of 9. 14 PREF-34/May. The selling price of gas has been increased by 5% every year. 8. 8.31 cubic meters of gas per vehicle has been taken for the revenue calculations. In the second year.1 No. starting from 120 cars per day in the first month and going up to 290 cars per day in the 12th month. number of cars is increasing at a rate of 20% till fifth year because the project would be in its growth stage.12 cubic meter can be filled in the cylinders of 40kg and 50kg respectively. of Cars Based on the survey of some CNG stations in Lahore. because at that time. operational expenses and salaries. operational expenses and staff salaries are increased by 10% every year as a result of inflation.2 Revenue Assumptions 8. The prices for gas. Of Cars 1 202 2 303 3 363 4 435 5 522 6 600 7 690 8 793 9 911 10 1. the number of cars assumed for revenue projections is as follows: Table 8-1 Detailed Projected Increase in Cars Years No.2. After second year. An increase of 15% has been considered from sixth year. multiple shift allowance is also provided for the plant and machinery.31 cubic meters 8.12 Percentage Use 40% 60% 9.3.4 First Year Allowance Other than the normal depreciation allowances. which is as follows: Table 8-4 Tax Adjustments Land Building CNG Plant & Equipment Office Equipment Furniture & Fixture 0% 5% 10% 10% 10% 8. 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 .3 Depreciation on Assets 8.1 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. which operates on double or triple shift basis. depreciation is calculated on the rates as per the Income Tax Law.2 Taxable Profit For the purpose of calculating taxable profit. The first year allowance is calculated at 40% of written down value of CNG plant and equipment. first year allowance is also provided on the newly installed CNG plant and equipment for the purpose of providing benefit to the entrepreneur.6 11. 8.Pre-Feasibility Study Table 8-2 CNG Filling Station Average Volume Cylinder Type 40 kg 50 kg Weighted Average Volume Volume (cubic meters) 6. 5 Multiple Shift Allowance In addition to normal depreciation and first year allowances. 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.1 Accounts Receivables Mostly. However. 8. Therefore. 8.2 Advances to Employees Advances to employees are calculated on the basis of 30 days of both payroll and staff benefits. 8. 8.Pre-Feasibility Study CNG Filling Station equipment for all the ten years. 8. within 14 days.5 Sales Tax Payable Every company is required to deposit the amount of sales tax collected from the consumers.4 Accounts Payable Cost of gas and electricity for 20 days has been considered in calculating accounts payable. some CNG stations do offer a credit facility to reputable companies on agreed terms and conditions.7. These funds are deposited after every 14 days in favor of Government of Pakistan.6% of the normal depreciation allowance. the sale of CNG is on cash basis.will be amortized at the rate of 20% per annum. 16 PREF-34/May.7. 2005/Rev 2 . 8.7. 8.3 Accrued Utilities and Power Expenses Normally. Multiple shift allowance has been taken as 66. Therefore.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.7.7. The same has been taken as the basis for calculating the amount of sales tax payable. 6 Amortization of Preliminary Expenses Preliminary expenses amounting to Rs.7 Working Capital Working capital is calculated on the basis of following assumptions: 8. 000/. water and telephone) bills. utility expenses for 20 days have been taken as the basis for working capital computation. it would take 20 days to deposit the utilities (electricity. receivables are estimated at 6% of the total sales amount.820. 8. 2005/Rev 2 . The investor can make investments only in the purchase of CNG plant and equipment and install this equipment with any existing petrol pump. Moreover.10 Alternative Investment Opportunity The cost of land is the major portion of investment in this project. the investor can also avail lease facility from any leasing company on the purchase of CNG plant and equipment. 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. he/she also has another alternative course of action to setup the CNG station without acquiring the land. If any investor does not have enough resources for the acquisition of land.Pre-Feasibility Study CNG Filling Station 8. 17 PREF-34/May. In this case. The investor will pay 15% commission on the total revenue to the dealer/owner of the petrol pump. 7 3 2 .5 3 0 50% 50% 1 US$ = Rs. A s s e ts Land B u ild in g . 2005/Rev 2 R s.1 2 7 . Y rs.5 3 0 6 0 .1 0 0 5 1 3 .1 4 0 1 .0 0 0 8 2 0 .0 0 0 3 5 0 .7 6 5 R s .0 0 0 1 0 0 . 2 3 .Pre-Feasibility Study 9 CNG Filling Station FINANCIAL ANALYSIS 9. 0 0 0 1 .8 0 0 .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 8 5 .0 0 0 2 0 .0 0 0 2 8 .1 3 0 .0 0 0 2 5 .3 9 0 R s .0 0 0 1 0 0 .9 0 0 Sto re & Sp a re s $ 8 . 3 1 .7 0 0 .0 0 0 .5 6 3 .1 % 3 .0 0 0 3 7 7 . 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 .4 0 1 .2 4 6 4 .1 Project Costs P ro je c t C o s t R s. 3 1 .5 0 % R s.0 0 0 7 5 .5 6 3 .0 0 0 3 0 .C iv il W o r k s C N G E q u ip m e n t $ 1 3 3 .1 2 7 .0 0 0 3 5 .0 0 0 8 .7 6 5 1 5 . 18 PREF-34/May.0 0 0 8 5 .0 4 0 1 0 0 . 272 4.687.542 9.000 3.883 164.150.754 5.656 6.578.656 3.006 17.517 8.255.2 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.345 164.374.673.627 11.388 15.748 39.494 5.813 32.716.251.205 62.427.088 3.000 3.816.578.827.426 13.740.922 661.199 62.971.384 1.474.713.850 20.755 75.441.438 23.950 11.282 810.816.388 29.390.514 20.975 1.063 62.903.816.576.635.885 890.238.303.507 57.339 50.161 3.222 13.464 1.384 1.761.027 13.150.865 51.423 5.782 7.725.992.732 544.267.740 25.382 3.952.304.578.274.037 4.350.663 10.120.556.182.659.304.896.651 11.204 2.497.112 50.252 16.415.475.412.424.218 3.628.087 19.911 86.497.397.000 3.596.687 2.110 71.359 8.359 4.116 9.953 3.027 8.135 59.398 3.191 51.150 15.291 20.139.032.622.398 8.416.514 29.427.720.303 5.101 19.970 2.313 15.097.291 13.087 50.976.952.088.341.702.349.262 19 PREF-34/May.952 29.168.714.985 13.615 4.710 164.852.929. 2005/Rev 2 .494 3.613.027 980.122 1.852 3.699 2.929.373 90. 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 13.852.827.946 13.Pre-Feasibility Study CNG Filling Station 9.946 108.465.289 164.888.685 35.246.282.668 4.342.382.397.976 7.698 164.566.951 17.301.090 1.386.174 5.339 39.766.284.567.544 12.384 1.992.237.439 20.514 108.492 11.497.578.262 76.181 8.089.929.303 1.240 3.325.354 25.202.087 62.652 20.391 3.199 20.159 7.101 3.903.903.478.841.577.292.000 3.685 8.369 2.322.100 597.195 104.580.264 8.153 12.194.075.410.779.789 6.347 22.807 40.416.883 49.003 40.597.000 3.658.147.076 487.764.315.566.008.126.088 1.316.123.487 540.626 4.623 28.782.524 2.048 7.375.883 32.646 9.614 489.867.084 803.026.712 731.089.725.303 19.665 13.397.762 725.105.757 65.517 980.720 21.566.199.597.048 1.215.240 6.066 2.291 544.338 11.937.054 5.715 2.339 17.164 2.143 15.952.464 1.005 986.874 20.388 39.274.655 42.311.976.351.907.732 10.364.578.113 2.359 1.384 4.578.578.518 25.899.724.516.199 76.331.568 5.315. 000 1.040 38.000 25.765 20.594 - 1.264.944.753.000 66.636 10.122.000 1.154 81.034 2.094.067 2.800.000 1.040 27.Pre-Feasibility Study CNG Filling Station 9.000 1.966.451.555 187.378.040 1.314 96.390 25.765 1.669.633 31.418 5.152.999.129.380.563.487 363.563.953.578.800.800.084 2.040 1.493.351 8.530 296.131.715.364 87.240.641 206.765 15.523 23.852 15.781.042 14.630.630.702.290.359 20.800.617.563.904 - 2.210.000 1.215 68.594.450 513.149 15.563. PROFIT/(LOSS) LONG TERM LIABILITIES Finance Lease Long Term Loan CURRENT LIABILITIES Creditors Utility Bills Payable Sales Tax Payable TOTAL 20 PREF-34/May.389 10.904 FIXED ASSETS Preliminary Expenses OTHER ASSETS Security CURRENT ASSETS Accounts Receivables Advances to Employees Stores & Spares Cash & Bank Balances SHARE CAPITAL 1.883 4.765 29.027 15.398.563.994.291 779.122.535.000 1.923 513.007.923.551.648 96.056 15.800.377 Shares @ Rs.212.052.634.339 54.462 206.100 27.800.675 - 15.556.961.132 22.944.322.415 513.040 9.040 51.792 15.each UNAPP.578.991.000 1.000 26.815 513.800.388 45.563.406 596.563.800.563.523.665 22.000 1.127.040 6.681 373.669.231 17.282 23.551.212.130 4.468 32.806.105 249.936.636 7.127.765 4.000 1.142.765 50.000 1.944 3.787 68.566.199 78.000 1.871.831.429 11.436.269 2.727.999.800.800.563.084 - 4.000 1.800.978.514 36.000 1.052.493 31.315 31.800.716 301.040 3.102 57.100 26.563.232.653 12.581.765 13.212.141.628 21.950.132 23.280 22.101 328.579.303 1.343 72.839.781.520 24.819 - 6.190 3.457 513.280 22.883 7.390 890.000 1.594 636.101 24.953.800.566 1.980 57.556 116.171 482.952 10.3 Projected Balance Sheet Statement Summaries Balance Sheet YEAR Start up 1 2 3 4 5 6 7 8 9 10 27.534 - 3.871.677 35.675 .171 - 1.894.534 1.061.000 1.378.765 15.412.563.944.291.563.457.310 163.800.067 - 5.551.388.941 1.412.412.249 39.000 27.100 130.816.953.617.839 513.016.765 39.923.403 24.765 62.007.108.806 12.047 96.040 377.000 513.400.210.087 66.800.523 24.953 57.10/.195 105.787 4.426 13.550.228 21.929.674 154.520 24.036 513.197 32.195 513.523 23.399.973 16.101 25.520 24.806.515.427.190 140.855 81.936.556.403 164.781 31.147 170.894.390 492.040 17.104 15.702.523.497.800.000 1.286.437.800.100 656.800.579 528.530 CAPITAL EMPLOYED REPRESENTED BY: 793.563.377 1.090.765 76.403 24.665 21.964 15.130 1.329.952.665 21.152.476 24.740.927 2.834 31.153 15.430 TOTAL ASSETS 31.384 17.230.436 438.397.765 15.467.800.638.903.666.203 513.628 1.942 20.000 1.872 - 1.374.800.556.000 28.213.280 22.700.765 8.740.863 - 2.343 35.027 24.476 24.000 1.800.459 19.863 1.279 15.291 29.628 820.040 65.923.753.000 1.563.727.389 14.680.262 91.124 15.000 24.377 31.000 1.381 46.872 839.185 43.132 22.765 14.011 46.800.469.700 128.476 24.000 103.428 39.390 26.042.000 1.772.819 3. 2005/Rev 2 1.396 513.623. 976.373 17.275 1.616.085 1.112.102 65.100 507.301.462 206.687 725.345 164.225 15.561.351 9.366.105.094.290 9.691.066 803.091 19.365 2.994.042.944 3.315 38.102.743.085 4.000 1.256.243.255.159 1.653 204.617 1.827.753 2.674 876.883 164.764 9.418 6.390 222.212 184.398 5.094.137.691.869.727 13.000 10.599.191.537 377.346 2.474 1.926.888.415.217 1.944 173.179.351.289 4.271 21.872.398 3.542 6.315.859 OTHER SOURCES APPLICATION Repayments of Loan Tax Payment Dividend Paid .964.Cash SURPLUS / (DEFICIT) INCREASE/(DECREASE) IN WORKING CAPITAL NET INCREASE/(DECREASE) OPENING BANK BALANCES CLOSING CASH BALANCE WORKING CAPITAL Increase 21 PREF-34/May.544 7.493 147.535.753 2.112.343 6.157 2.852 17.377 57.570 11.870 27.302 6.418 206.841.727 731.101 3.867.987.398.037 21.542 10.841.698 6.289 164.138 173.854 1.753 3.613.316.388.710 2.181 222.779.4 Projected Cash Flow Statement Statement Summaries Cash Flow Statement YEAR SOURCES FROM OPERATION Profit Before Tax Add: Depreciation Amortization 1 2 3 1.395 8.469.240 597.000 3.000 5.542.976.351.185 51.635.753 487.855.492 6.017 1.181 665.089.415.037 - 967.271 489.451.345 11.927 147.885 17.122 3.181 729.648 1.656 540.852 - 19.316.423 3.000 13.343.942 223.999.462 2.786.976.615 19.185 255. 2005/Rev 2 .492 11.994.150.494 661.774 7.225 661.987.885 597.498.811 255.933 3.217 4 5 6 7 8 9 10 8.212 3.859 13.191.213 3.469.953 13.727 7.391 15.970 223.398.883 9.612 6.556.729 11.050.708.102 1.469.710 164.391 - 17.076 890.048 489.970 10.687.685.440.176 3.172.272 731.786.535.718 3.811 12.365 6.570 974.487 1.356.927 1.511 5.729 240.110.556.451.241 51.239.450 5.599 6.112.377 4.559.493 957.161 204.382 810.764.680.151 1.112.042.985 1.499 1.105.985 13.698 164.872.813 1.855.351 184.514 6.343 507.764.725.091 540.841.680.615 - 20.Pre-Feasibility Study CNG Filling Station 9.161 7.138 1.126.544 12.764 889.315 240.779.274.150.054.916 38.017 507.653 17.507 986.953 - 15.942 27.999.928.645.766. 714.194. 3.87 Rs. 2.673.090 Sales Tax @ 15% Rs.28 86. 1. 7.123.14 13.655 Rs.524 Rs.568 Rs. 28.755 Rs. 26. 13.865 Rs.006 Rs.35 Rs.04 Rs.19 Rs. 3.597. Rs. 2005/Rev 2 23. 29.651 Rs. 3.685 22 PREF-34/May. 9.426 Rs.26 40. 11. 2.31 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.311. 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. 20.623 Rs. 2.373 .116 Rs.659.205 Rs. 21.51 Rs.69 104.Pre-Feasibility Study CNG Filling Station 9.342. 4.375.10 20. 22.580.341.89 Rs.50 Sales Tax Amount Rs.350.267. 2.161 Rs. 3.303.702. 3. 2. 24.93 71.43 49.316.789 Rs. 5.976 Rs.410.626 Rs. 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.69 Rs.950 Rs.215. 6.75 Rs. 3.65 59.62 Rs.16 32.139.347 Rs.5 Revenues Revenues Quantity of Gas Sale per Vehicle Annual Increase in the Sale Price of Gas 9.740.10 25. 25. 3. 6 Cost of Sales Cost of Sales Rate of Gas Consumption of Electricity Rate of Electricity Maintenance Annual Increase Rs.487 16.67 Rs.946 271.37 Year 4 435 Cars 1. 16.509.65 Rs.697 Rs. 9.249. 12.665.382.308 567.143 25.50 0.937. 8.604 430. 0.149 502.Pre-Feasibility Study CNG Filling Station 9. 6.496.363 4.216.473 Electricity Consumed in KWH 127.169 10.13 Year6 600 Cars 2. 12.434.181 11.25 Year 8 793 Cars 2.83 Year 10 1047 Cars 3.457.151 33.915 Rs.419.377 763. 13. 14.720 51.578 Rs.749. 11.295.960 374.801 1.053.465 9.246 364.312.327 53.974 5.178 578.52 Rs.281 8.420 2.859 188.051.766. 6.629.52 Rs.893. 6. 10.684 Rate of Gas Rs. 11.904 877. 7.062 Maintenance 171. 7. of Cars / day 202 Cars Annual Gas Sold (in M3) 686.478.662.568. 2005/Rev 2 .414 Rs. 15.125 652.92 Rs.725.013.535 325.87 Rs.25 10% Year 1 No.516.657.166.186 KW Rs.819 494.93 Rs.47 Rs.992.704 304.304.354 Rs.50 Rate of Electricity Rs.613.33 Rs. 10.252 32.039 Rs.158 12.48 Year 9 911 Cars 3. 6.542.754 /Cubic Meter /Cubic Meter /KWHr /Cubic Meter Year 2 303 Cars 1.354 23 PREF-34/May.690 6.92 Cost of Sales Cost of Gas Sold 4.153 20.384 21.303 40.663 15.474.714 3.61 Year 3 363 Cars 1.270.144 Rs. 7. 13.21 Year 5 522 Cars 1.438 65.734 8.074 Cost of Electricity 883. 8.010.15 Rs.14 Year 7 690 Cars 2.045 437.092 1.649.575 664.293 Rs.740 26.631 226.178 Rs.624 253. 9.643.720.462.31 7.455 42.618 Cost of Sales 5.783. 966.190 528.366.834 779.562 5. 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 25 793.462 30 87.674 4.000 12.396 128.322.450 96.303 301.282 Sales Tax Payable Sales Tax 14 66.213.716 19.700 2.415 187.017 24 PREF-34/May.195 1.197 1.190 3.665 Current Liabilities Accrued Utilities & Power Expenses Utilities Expenses 20 10.110.623.042 1.Pre-Feasibility Study CNG Filling Station 9.677 1.203 - - - TOTAL CURRENT ASSETS 880.240.436 23.346 2.230.923 170.090.681 103.457.550.429 636.585.034 363.787 TOTAL CURRENT LIABILITIES 373.457 206.231 2.648 1.329.980 2.487 1.275 1.326.666.249 1.973 1.181 729.656.012 6.291 163.831.400.813 1.016.597 4.147 5.736.617 1.036 140.492.310 14.050.814 1.556 2.581.641 16.107.010 2.228 3.736 3.314 1.029 3.7 Working Capital Working Capital 1 Total No.772.195 105.855 4.066.381 2.579 Accounts Payable Cost of Gas & Electricity 20 296.509 1.269 438.950.290.497.000 11.952 482.108. 2005/Rev 2 .806 839.674 876.426 1.291.633 596.256.440.487 21.941 206.566 249.105 17.869.401.364 1.555 6.839 154.645.215 3.100 13.952 2.579.406 130.815 116.131.157 2.459 2.648 NET WORKING CAPITAL 507. 7% 53. 9.00% 81.8 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 51.29% 29.0% 0.65% Rs.16 9.52 6.16% 11.0% 0.89% Rs.38% 29.92% Operating Profit 23.44% 34.96% 19.00 25 PREF-34/May.21% 15. 11.75% 25. - Rs.00% 0.0% 0.05 Rs.00 0.52 Debt Ratios Debt Ratio (of total assets) Debt Equity Interest Coverage Ratio 44. - 18.78% 37.78% Rs.00 0. - 19.28% 16.67 0.02% Return on Investment (ROI) Return on Equity (ROE) Earning per Share (EPS) Dividend per Share 9.50 3.84% 18.32% 21.16 16.33 Rs.43 15.19% 17.15% 17.95% 0.43 7.00% 0.50 12.24 8.3% 0.00% 0.2% 15.72% 33.Pre-Feasibility Study CNG Filling Station 9. - 14. - 18.69% 27.14% 31.00 0.84 Rs.0% 2.50% 15.39 Rs.50 17.5% 32.85% 18.01% 10.75% 25.14% 14.51% 22.85% 20. 1.95 122.10% 27.51% 22. 8.34% 17.01 5.01% Rs.01% Rs.18% 23.55% 47.94% 16.38 Rs.80% 13.03% 29. 13.50% 14.30 Rs.25% Rs. - Liquidity Ratios Current Ratio 6. 2005/Rev 2 .07% Rs. - 15. 3.98 Rs.35% 16.58% Rs.82% 18.0% 0. - 15.77 17.47 20.03% 34. 2.78 Rs.28% 3.99% Net Profit before tax 14.85% 31.41% 39.91% 42.10 Rs.71% 31.71% 49.8% 4.25% 31. 6.87% 5.99% Profit after Tax 13. 12.69% 27.52 Rs.89% Rs.03% 26.05% 32.00% 0.29% 44.24% 15.48% 32.56% 30.83 9.06% 19. - 16. 5. - 19. 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. 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 .