1.
Presenters: S@jid Ali Arain
R@o M. Kamran
F@raz Ahmed
Sh@fqat Ali Goraho
Q@iser Ahsan Janjua
5th Dimension
MBA 4C
Entrepreneurial Finance
Sir Akbar Saeed Saturday, October 3, 2015
3. Name: Solar Tech.
Business Type Partnership
Business: Manufacturing Solar Panels
Location: Near Thar, Pakistan
Business State Start-up
4. Aggressively Capture Pakistani Market
Compete All Unhealthy Power Generation Devices
Achieve Positive Cash Flow By Year 3 Of Operations
Operate In Profits In Year 3
Utilize 100% Production Capacity By Year 5
5. Making Solar Panels That Are…
o Efficient
o Cheap
o Above All GREEN
Fulfill Electricity Requirements Of Pakistan
6. Demand And Supply Gap Of Electricity Is Very Wide
in Pakistan
Govt. Is Also Interested In Alternate Power
Generation Projects
Pakistan Has A Very Good Sunshine Time
There Is No Maintenance Cost
Long Life (Around 25-30 Years)
8. Solar Tech. Is A Partnership
Five Partners Are…
o R@o Muhammad Kamran 20% Of Equity
o S@jid Ali Arain 20% Of Equity
o Q@iser Ahsan Janjua 20% Of Equity
o F@raz Ahmed 20% Of Equity
o Sh@fqat Ali Goraho 20% Of Equity
5th Dimension
10. It’s The Flow Of Charged Particles
There Are Two Electrodes Involved
o Positive (+) Electrode And Negative (-) Electrode
In A Conventional Battery The Force That Move
Charged Particles Is Chemical Force
In Solar Panels Sunlight Excite Electron To Move From
Negative (-) Electrode To Positive Electrode (+)
11. Most Of Solar Cells Are Made Of Silicon And
Phosphorus
Silicon Has 4 Valance Electron And Phosphorus Has 5
Valance Electrons
If Atoms Of Both Elements Are Bound Together The
5th Electron Of Phosphorus Is Bound To The Structure
Weekly
This Electron Can Fly-out In Presence Of Sunlight
14. Purifying The Silicon Di Oxide (Sand) To Get Pure
Silicon
This Process Is Carried Out In A Furnace
The Silicon We Get In This Process Is In Slag Form
By Product Are Impurities Which Are Used In Other
Industries
15. Slag Silicon Is Then Processed In Czochralski Crystal
Growing Machine
This Process Purifies Silicon Even Further
We Get Big Pure Silicon Crystals After This Process
16. Then Big Crystals of Silicon Are Sliced Into Any Shape
We Want
17.
18. Now Is Added To The Silicon Wafers By Using A
Particle Gun
This Process Adds A Positive (+) Electrode In The
Silicon Wafers
This Process Is Called “Doping”
19. Now These Cells Are Linked Together In Serial So That
They Can Absorb Most Of Sun Light
Linked Cells Are Then Placed In A Aluminum Frame
Pure Silicon Can Reflect 35% Of Sun Light
So We Cover It With A Very Thin Layer Of Titanium Di
Oxide
21. We Are Assuming That We Will Be Able To Sell Our
Product To 5,000 House Holds
So The Project Capacity Will Be 45,000
Panels/Annum
There Will Be 32 Cells In Each Panel (1,440,000
Cells/Annum)
Each Panel Will Produce Around 200 Watts Of Power
(9,000,000 W/Annum)
22. Project Cost (PKR)
Land 20,000,000
Buildings 150,000,000
Foreign Machinery 50,000,000
Installation Cost 3,000,000
Vehicles 5,000,000
Interest During Construction 10,739,747
Preliminary Expenses 30,000,000
Contingencies 30,000,000
Fixed Cost 298,739,747
Initial Working Capital 150,000,000
Total Project Cost 448,739,747
23. Purchasing 20 Kanal (108,000 Sq. Ft) Land For This
Project
The Rate Of Land In Thar Is Around PKR
1,000,000/Kanal
So Total Cost Of Land Is Around PKR 20,000,000
Back To Project Cost
24. According To A Builder The Construction Cost Per Sq.
Ft. Is Around PKR 12000/Yard (PKR 7,200,000/Kanal)
The Total Cost Of Office, Plant Building And Houses
Will Be Around PKR 150,000,000
Back To Project Cost
25. All Machinery Will Be Imported From Germany
The Cost Of Machinery Will Be…
Machine Qty Rate Cost (PKR)
Furnace 01 18,000,000 18,000,000
Crystal Growing Furnace 04 2,550,000 11,000,000
Doping Machine 03 4,250,000 13,000,000
Wafers Machine 02 3,825,000 8,000,000
Total 50,000,000
Back To Project Cost
26. This Project Do Not Require Intensive Installation
Work
The Installation Cost Will Be Around PKR 3,000,000
Back To Project Cost
27. Vehicles Of Amount Around PKR 5,000,000 Will Be
Required
Back To Project Cost
28. Bank Loan Rate Months Int. Dur. Cons.
PICIC 50,000,000 15% 6 3,687,500
Orix Leasing 5,000,000 15% 3 187,500
MCB (W. Cap. Loan) 150,000,000 15% 2 3,825,000
205,000,000
UBL (Misc. Cap. Exp.) 64,243,848 14% 4 3,040,875
Total Debt 269,243,848 Total Interest 10,740,875
Back To Project Cost
29. Preliminary & Pre-production Expenses (PKR)
Project Examination Fee 1,346,219
Loan Commitment Fee 336,555
Loan Documentation 336,555
Feasibility Studies 300,000
Company Formation /Reg. 500,000
Legal Counsel Fee 500,000
Auditor's Fee 300,000
Salaries Wages 25,000,000
Trial Run Losses/Wastages 2,500,000
Total 31,119,329
Back To Project Cost
30. Initial Working Capital
Cash 30,000,000
Acc. Receivable 8,175,938
Inventory 95,224,517
Total Current Assets 133,400,455
Current Liabilities
Acc. Payable 17,482,500
Accruals 500,000
Total Current Liabilities 17,982,500
Initial Net Work Cap 115,417,955
Back To Project Cost
41. Selling Price/Panel Will Be PKR 25,500
There Will Be 9 Panels/Home So Total Cost Will Be
PKR 229,500
An Inverter And A Germanium Battery Cost Around
PKR 150,000
Total Cost To The Customer Will Be Around PKR
400,000
The Cost Will Be Around PKR 1,000/Month
And Obviously Without Any Load Shedding
50. Ratio
Gross Profit To Sales 10.59%
Cost Of Goods Sold To Sales 89.41%
Net Profit To Sales 0.03%
Return On Assets 0.04%
Return On Equity 0.11%
Current Ratio 2.77167
Quick Ratio 1.19998
Inventory Turnover 7.19156
Asset Turnover 1.64114
Debt Ratio 61.54%
Leverage Ratio 1.26264
53. Users Of Outdoor Products And Services:
o Corporate Sector (Bill Boards & Hoardings)
o Retail Outlets
o Beauty Saloons
o Fast Food Chains
o Education Institutes
o Street Lights & Signals (Long Term Planning)
54. House Hold Users
Hostiles
Party Decorators
Hospitality Service Providers
55. Public Relations
o Conduct Seminars On Corporate Level To Attract Clients Of
Advertising Agencies
Above The Line
o Advertising On Bill Boards & News Papers
Sales Discounts
o Giving Discounts On Bulk Buying Of Products
56. Savings In Electricity & Generator Bills
Over Coming The Energy Crises
Save Replacements Cost Of Electronics Appliances
Save Maintenance Cost And Repair Cost
Cost Effectiveness
Emerging Market