ITEM COST (RS.

)
Construction – Office / Store 675,000
Construction – Service Stations 850,000
Masonry Work 120,000
Mechanical Repairs Equipment 90,000
Denting Equipment 100,000
Painting Equipment 30,000
Wheel Alignment Machine 1,000,000
Wheel Balancing Machine 650,000
High Pressure Cleaning Equipment 550,000
Piston Pump 250,000
Spare Parts Purchases 125,000
Lubricant Purchases 25,000
Advance Rent & Deposit 900,000
Working Capital 552,000
Pre Operating Costs 50,000
Office Furniture & Equipment 80,000
Total Cost 6,047,000
 Capacity Human Resource Equipment Location
867 Cars / Month 5 (Management) Local / Eurpoean / High Income
20 (Technical Staff) Chinese Locality

Financial Summary

Project Cost IRR NPV Payback Period Cost of Capital

6,047,000 33% Rs. 4,099,801 3 Years & 5 months (WACC)
17.50%
 Location
High Income
Locality

ost of Capital
(WACC)
17.50%
 MECHANICAL REPAIRS & MAINTENANCE
Equipment Number Estimated Cost (Rs.)
Complete Mechanical Toolbox 2 26,000
Work Bench 2 5,000
Vice 2 9,000
Tool Box Cupboard 1 5,000
Voltmeter / Ammeter 2 5,000
Timing Light 2 12,000
Battery Charger 1 7,000
Compression Gauge 1 6,000
Others - 15,000
Total 90,000

DENTING
Equipment Number Estimated Cost (Rs.)
Denting Toolbox 2 20,000
Mechanical Toolbox 1 13,000
Pressure Jack (Large) 1 30,000
Gas Cylinder 1 6,000
Carbide Tank 1 3,000
Welding Kits 2 6,000
Drill Machine (Hand) 2 3,000
Puller Jack 1 4,000
Others - 15,000
Total 100,000

PAINTING
Equipment Number Estimated Cost (Rs.)
Painting Compressor (2 hp; 1k lbs) 1 15,000
Spray Gun (Small) 1 3,000
Spray Gun (Large) 1 4,000
Pipe 1 1,000
Others - 7,000
Total 30,000

HIGH PRESSURE CLEANING

Equipment Number Estimated Cost (Rs.)
High Pressure Cleaner (incl.Piston Pump) 1 550,000
Piston Pump 1 250,000
Total 800,000

WHEEL ALIGNMENT & BALANCING

Equipment Number Estimated Cost (Rs.)
Complete Computerized Alignment
Equipment (Including Heads, Disc plates etc.)
– A Class 1 1,000,000
Computerized Wheel Balancing Machine 1 650,000
Total 1,650,000
Estimated Cost (Rs.)
550,000
250,000
800,000
 OFFICE FURNITURE
Item Number Estimated Cost (Rs.)
Table & Chair Set (Owner) 1 10,000
Table & Chair Set (Customer Service) 1 5,000
Air Conditioner (Split Unit) 1 30,000
Waiting Chairs 10 10,000
Sofa Set for Customers 1 15,000
Curtains / Interior Décor - 10,000
Total 80,000
 GENERAL MANAGEMENT
Designation / Type Number Monthly Salary (Rs.)
Owner 1 -
Accountant 1 2500 (10- 12 Hrs.)
Purchaser 1 5,000
Office Assistant / Store Keeper 1 2,500
Guard 1 2000 (Night Only)

JOB / DUTY ALLOCATION

Designation / Type Number Monthly Salary (Rs.)
Foreman 1 8,500
MECHANICAL REPAIRS & MAINTENANCE
Mechanics (Ustad) 2 12,000
Assistant Mechanics 2 8,000
Helpers 2 3,000
DENTING
Head Denter (Ustad) 1 8,000
Denters 2 12,000
Assistant Denter 1 4,000
Helper 1 2,000
PAINTING
Painter Ustad 1 8,000
Assistant Painters 2 10,000
Helper 1 2,000
Total  16 122,500

WHEEL ALIGNMENT & BALANCING

Designation / Type Number Monthly Salary (Rs.)
Operator (Incharge) 1 8,000
Assistant Operator 1 4,000
HIGH PRESSURE CLEANING
Cleaner (Incharge) 1 8,000
Assistant Cleaner 1 4,000
Total 4 24,000
 SERVICE GROSS MARGIN
Denting & Painting 29%
> Cosmetic Touchups 28%
> Accidental Repairs 29%
> Full Body Restoration 30%

Mechanical Repairs & Maintenance 25%

> Maintenance Services 33%
> Major Repairs 14%

Wheel Alignment & Balancing 90%

> Alignment 91%
> Balancing 89%

High Pressure Cleaning 79%

Overall 56%
 SERVICE MARGIN
Spare Parts 10.00%
Lubricants 12.50%
Subletting 25.00%
 MASONRY WORK FOR BAY AREAS
Item Bay Areas
Mechanical Work (Duct & Ramp) 6
Denting 4
Painting 4
Total 14

CONSTRUCTION COST FOR WHEEL ALIGNMENT / BALANCING & PRESSURE CLEANING

Item Estimated Cost (Rs.)
Wheel Alignment & Balancing 400,000
Ramp for Alignment 50,000
High Pressure Cleaning 400,000
Total 850,000
Estimated Cost (Rs.)
60,000
30,000
30,000
120,000
 UTILITY MONTHLY CHARGES (RS.)
Electricity 12,000
Water 10,000
Telephone 2,500
Entertainment 1,000
Total 25,500
 Labor Cost Per Car (Rs.)
Denting & Painting Mechanical Repairs
Monthly Pay Cosmetic Accident Restoration Minor Major
Mechanical 46,000 - - - 23,000 23000
Denting 38,000 - 28,500 9,500 - -
Painting 30,000 18,000 4,500 7,500 - -
Foreman 8,500 1,700 1,700 1,700 1,700 1700

Total 122,500 19,700 34,700 18,700 24,700 24,700

 ITEM 3 MONTHS COST (RS.)
Utilities 76,500
Salaries 475,500
Total 552,000
 Particulars Rate
Required return on equity 20.00%
Cost of finance 15.00%
Weighted average cost of capital 17.50%
 Item Assumption(s) Period
Sales Increase 12% Per Year
Increase in COS 10% Per Year
Increase in Staff Salaries 10% Per Year
Increase in Utilities 10% Per Year
Increase in Rent 10% Per Year
Increase in Office Expenses 10% Per Year
Debt / Equity Ratio Ratio 50:50
Depreciation
> Building & Masonry Work 10% Per annum (Diminishing Balance)
> Technical Equipment 10% Per annum (Diminishing Balance)
> Office Furniture & Equipment 10% Per annum (Diminishing Balance)
> Wheel Alignmnet & Balancing 10% Per annum (Diminishing Balance)
> Piston Pump Car Lift 10% Per annum (Diminishing Balance)
> High Pressure Cleaning 33% Straight Line Per Year
High Pressure Cleaning Maintenance Cost 25% of Cost Price
High Pressure Cleaning Replacement 3 Years
Lease Period 5 Years
Lease Installments Monthly
Financial Charges (Lease Rate) 33% Per annum
Tax Rate Income Tax on Salaried Individuals
 Item Revenue / Fee Charged (Rs.)

Fee Charged

Estimated

Revenue

Material
Cars
(Rs.)
Denting & Painting 181,000
Cosmetic Touchup
(3 Piece Patching & 5,000 6 30,000 1,000
Paint)
Accidental Repairs 13,000 7 91,000 3,000
Full Body Restoration 30,000 2 60,000 6,000
Mechnical Repairs 190,000
General Repairs 1,500 100 150,000 -
Major Repairs 20,000 2 40,000 -
TOTAL 371,000

ASSUMPTIONS ASSUMPTIONS

Full Body Restoration % age of Revenue General Repairs % age of Revenue

Spare Parts 10% Spare Parts 45%
Subletting 10% Subletting 7%
Lubricants 2.50% Lubricants 5%

ASSUMPTIONS ASSUMPTIONS

Accidental Repairs % age of Revenue Major Repairs % age of Revenue

Spare Parts 5% Spare Parts 20%
Subletting 5% Subletting 5%
Lubricants 1% Lubricants 2.50%
 Cost of Sales (Rs.) Margin
(%)

Spare Parts

Lubricants

Total Cost
Subletting
Labor

132,271 27%

3283 - - - 25,698 14%

4,957 591 116 520 64,285 29%

9,350 2,727 667 2,400 42,288 30%
135,556 29%
247 614 67 84 101,130 33%
12,350 3,636 427 800 34,426 14%
267,827 28%
 MONTHLY REVENUE / COST SCHEDULE

Revenue / Fee Charged Cost of

Item (Rs.) Sales (Rs.)

Estimated Cars
Fee Charged

Spare Parts

Lubricants

Total Cost
Subletting
Revenue

Material

Labor
(Rs.)
Wheel Alignment / Balancing 125,000 12,000
Wheel Alignment 350 250 87,500 - 32 - - - 8,000
Wheel Balancing 150 250 37,500 - 16 - - - 4,000
High Pressure Cleaning 62,500 17,000
High Pressure Cleaning 250 250 62,500 20 48 - - - 17,000
TOTAL 187,500 29,000
Gross
Margin
(%)

90%
91%
89%
73%
73%
85%
 Projected Income Statement (Rs.) Year1 Year2 Year3 Year4 Year5
Revenue 6,702,000 7,506,240 8,406,989 9,415,827 10,545,727
Denting & Painting 2,172,000 2,432,640 2,724,557 3,051,504 3,417,684
Genera l Repairs / Maintenance 2,280,000 2,553,600 2,860,032 3,203,236 3,587,624
Wheel Alignment & Balancing 1,500,000 1,680,000 1,881,600 2,107,392 2,360,279
High Pressure Cleaning 750,000 840,000 940,800 1,053,696 1,180,140
Net Sales 6,618,225 7,412,412 8,301,901 9,298,130 10,413,905
Cost of Sales 3,561,930 3,918,123 4,309,935 4,740,929 5,215,022
Gross Profit 3,140,070 3,588,117 4,097,054 4,674,899 5,330,705
Gross Profit Margin 46% 47% 48% 49% 50%

General Administrative & Selling Expenses

Salaries 144,000 158,400 174,240 191,664 210,830
Utilities Expense 306,000 336,600 370,260 407,286 448,015
Rent Expense 900,000 990,000 1,089,000 1,197,900 1,317,690
Office Misc. & Traveling Exp. 60,000 66,000 72,600 79,860 87,846
Amort. of Preliminary Expenses 10,000 10,000 10,000 10,000 10,000
Maintenance Expense 91,667 45,833 - 100,833 50,417
Depreciation Expense 567,833 529,383 494,778 481,967 453,937

Subtotal 2,079,500 2,136,217 2,210,878 2,469,511 2,578,735

Operating Income 1,060,570 1,451,900 1,886,175 2,205,388 2,751,970
Financial Charges(15%PerAnnum) 424,156 353,587 271,673 176,591 66,224

Earnings Before Taxes 636,414 1,098,314 1,614,502 2,028,797 2,685,746

Tax 101,603 256,910 437,576 582,579 812,511
Net Profit 534,810 841,404 1,176,927 1,446,218 1,873,235

Monthly Profit After Tax 44,568 70,117 98,077 120,518 156,103

 Year6 Year7 Year8 Year9 Year10
11,811,214 13,228,560 14,815,987 16,593,905 18,585,174
3,827,806 4,287,143 4,801,600 5,377,792 6,023,127
4,018,139 4,500,316 5,040,354 5,645,196 6,322,620
2,643,513 2,960,734 3,316,022 3,713,945 4,159,618
1,321,756 1,480,367 1,658,011 1,856,972 2,079,809
11,663,574 13,063,203 14,630,787 16,386,481 18,352,859
5,736,524 6,310,176 6,941,194 7,635,313 8,398,844
6,074,690 6,918,383 7,874,793 8,958,592 10,186,329
51% 52% 53% 53% 54%

231,913 255,105 280,615 308,677 339,544

492,816 542,098 596,307 655,938 721,532
1,449,459 1,594,405 1,753,845 1,929,230 2,122,153
96,631 106,294 116,923 128,615 141,477
- - - - -
- 110,917 55,458 - 122,008
428,710 426,172 405,738 387,348 392,980

2,699,529 3,034,990 3,208,888 3,409,808 3,839,694

3,375,161 3,883,393 4,665,905 5,548,784 6,346,635
- - - - -

3,375,161 3,883,393 4,665,905 5,548,784 6,346,635

1,053,806 1,231,688 1,505,567 1,814,574 2,093,822
2,321,355 2,651,706 3,160,338 3,734,210 4,252,813

193,446 220,975 263,362 311,184 354,401

 Projected Balance Sheet (Rs.) Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Assets
Current Assets
Cash & Bank Balance 552,000 826,879 1,371,554 2,032,376 2,146,430 3,100,595 4,960,684
Accounts Receivable (Net) 0 83,775 93,828 105,087 117,698 131,822 147,640
Lubricants & S.Parts Inventory 150,000 165,000 181,500 199,650 219,615 241,577 265,734
Prepaid Rent 900,000 900,000 900,000 900,000 900,000 900,000 900,000
Total Current Assets 1,602,000 1,975,654 2,546,882 3,237,113 3,383,743 4,373,993 6,274,058

Fixed Assets
Building & Workshop 1,645,000 1,480,500 1,332,450 1,199,205 1,079,285 971,356 874,220
Technical Equipment 220,000 198,000 178,200 160,380 144,342 129,908 116,917
Office Furniture 80,000 72,000 64,800 58,320 52,488 47,239 42,515
Machinery 2,200,000 1,851,667 1,519,833 1,202,850 1,485,898 1,175,975 876,878
Total Fixed Assets 4,145,000 3,602,167 3,095,283 2,620,755 2,762,013 2,324,478 1,910,530
Intangible Assets
Pre Operating Costs 50,000 40,000 30,000 20,000 10,000 0 0
Total Assets 5,797,000 5,617,820 5,672,165 5,877,868 6,155,756 6,698,471 8,184,588

Owner's Equity 3,023,500 3,258,310 3,799,714 4,576,640 5,522,859 6,846,094 8,317,448

Long Term Liability 3,023,500 2,584,510 2,074,951 1,483,478 796,922 0 0

Total Equity & Liabilities 6,047,000 5,842,820 5,874,665 6,060,118 6,319,781 6,846,094 8,317,448
 Year 7 Year 8 Year 9 Year 10

6,328,771 8,595,775 11,162,954 13,266,437

165,357 185,200 207,424 232,315
292,308 321,538 353,692 389,061
900,000 900,000 900,000 900,000
7,686,436 10,002,513 12,624,070 14,787,813

786,798 708,119 637,307 573,576

105,225 94,703 85,233 76,709
38,264 34,437 30,994 27,894
1,232,857 932,104 639,244 1,063,353
2,163,144 1,769,363 1,392,777 1,741,532

0 0 0 0
9,849,580 11,771,876 14,016,847 16,529,345

9,969,154 11,879,492 14,113,702 16,616,515

0 0 0 0
9,969,154 11,879,492 14,113,702 16,616,515
 Projected Statement of Cash Flows (Rs.) Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Cash Flow From Operating Activities
Net Profit 0 534,810 841,404 1,176,927 1,446,218 1,873,235
Add: Depreciation Expense 0 567,833 529,383 494,778 481,967 453,937
Amortization Expense 0 10,000 10,000 10,000 10,000 10,000
(Increase) / decrease in A/c Rec. -83,775 -10,053 -11,259 -12,610 -14,124
(Increase) / decrease in inventory -15,000 -16,500 -18,150 -19,965 -21,962
Net Cash Flow From Operations 0 1,013,869 1,354,234 1,652,295 1,905,610 2,301,087

Cash Flow From Financing Activities

Receipt of Long Term Debt 3,023,500
Repayment of Long Term Debt -438,990 -509,559 -591,473 -686,555 -796,922
Owner's Equity 3,023,500 -300,000 -300,000 -400,000 -500,000 -550,000
Net Cash Flow From Fin. Activities 6,047,000 -738,990 -809,559 -991,473 -1,186,555 -1,346,922

Cash Flow From Investing Activities

Capital Expenditure -1,645,000
Office Furniture -80,000
Technical Equipment -2,670,000 -605,000
Lubricant & Parts Inventory -150,000
Preliminary Operating Expenses -50,000
Advance Rent -900,000
Net Cash Flow From Investing Activities -5,495,000 0 0 0 -605,000 0

NET CASH FLOW 552,000 274,879 544,675 660,822 114,055 954,165

Cash at the Beginning of the Period 0 552,000 826,879 1,371,554 2,032,376 2,146,430
Cash at the End of the Period 552,000 826,879 1,371,554 2,032,376 2,146,430 3,100,595
Year 6 Year 7 Year 8 Year 9 Year 10

2,321,355 2,651,706 3,160,338 3,734,210 4,252,813

428,710 426,172 405,738 387,348 392,980
0 0 0 0 0
-15,819 -17,717 -19,843 -22,224 -24,891
-24,158 -26,573 -29,231 -32,154 -35,369
2,710,088 3,033,588 3,517,003 4,067,180 4,585,532

-850,000 -1,000,000 -1,250,000 -1,500,000 -1,750,000

-850,000 -1,000,000 -1,250,000 -1,500,000 -1,750,000

-665,500 -732,050

0 -665,500 0 0 -732,050

1,860,088 1,368,088 2,267,003 2,567,180 2,103,482

3,100,595 4,960,684 6,328,771 8,595,775 11,162,954
4,960,684 6,328,771 8,595,775 11,162,954 13,266,437