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EXECUTIVE SUMMARY
THE PROJECT:-
station 1 kilomiter ahead from khan pur ada rahim yar khan.
LOCATION:
station 1 kilomiter ahead from khan pur ada rahim yar khan..
floods.
SPONSORS:
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Star CNG Station
PLANT CAPACITY:
MATERIAL REQUIREMENT:
PROJECT ENGINEERING:
MANPOWER:
IMPLIMENTATION STAGE:
Total 33598
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FINACIAL PLAN:
EQUITY 33598
Total 33598
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FINANCIAL INDICATORS:
33598 33
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sponsors.
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INTRODUCTION
The proposed project contemplates to set up a new CNG station 1
kilomiter ahead from khan pur ada rahim yar khan. The project machinery
is locally available. The capacity of this project is too good due to its latest
filling machines and compressor its has a capacity of filling the 864000
vehicles per year. CNG pump will work 360 days of years there will not be
any stop.
This total Cost of the project comprises of Fixed Assets Rs. 32161000
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Management
The overall management and control of the firm will be actively managed
Partners Name
1. Majid ali
3. Rehan Majeed
The partners will contribute equally in the equity of the project and will
Sponsors
The sponsors of the project are professionally qualified and have valuable
and extensive experience. They have got good trading contacts and
The sponsors are financially sound and capable to contribute their part of
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Star CNG Station
Age : 22 years
House no 10d
Qualification : BBA(Finance)
Age : 22 Years
Age : 23 Years
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Technical Analysis
Manufacturing Process
- Natural Gas is one of the most valuable natural resources
abundantly available in our country. Compressed Natural Gas
(CNG) is produced when the natural gas is compressed into
cylinders to be used as a fuel in the automobiles. The
compressed natural gas has been used as an automobile fuel
since 1940, and over the years, the technology has been
modified and refined. In the recent years, the usage of CNG as
an automobile fuel has significantly increased because of its low
cost and environment friendly nature that’s why it is also called
as Green Fuel, because it possesses less carbon and led
contents than petrol.
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GROWTH
There has been a tremendous growth in the CNG sector over
the years. The total number of vehicles on CNG was 100,000
and CNG filling stations was 150 at the end of year 2000. The
number of CNG vehicles and CNG filling stations has increased
to 210,000 vehicle and 220 stations respectively and by the
year 2005 they have tremendously grown up to 670 CNG
Stations and 600,000 CNG fitted vehicles. At present, there are
more than 2000 CNG stations &2 million CNG fitted vehicles. The
:growth in terms of percentage is given in the following table
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MARKET ANALYSIS
Due to the increasing prices of petroleum products, the
trend of converting cars to CNG fueling system has been
on a rise. However, there exist a large number of people
who were reluctant to convert their vehicles from petrol to
gas due to safety concerns. Recently, many car
manufacturers have started manufacturing the cars with
built-in CNG fueling system. This change has led to
enhancing the confidence in the minds of the general
public regarding the safety concerns, and now, more
people are inclined towards purchasing these factory-fitted CNG fueling
.system cars
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Annexure - II
10 Contingency 250
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Annexure - III
Star CNG Station
Estimated Cost of Machinery
Rupees Rupees
("000") ("000")
Unit
Sr.No. Description Qty Total Cost
Cost
Gas compressor(8 to 15 PSIG) outlet pressure of
7500
1 3625 PSIG 50 vehicle per hour 1 7500
7 Contingencies 550
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Annexure – IV
Total cost
Sr.No. Description LCY FCY
("000")
1 Land 14105 - 14105
6 Transportation 2% of Machinery 12 12
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Annexure - V
Rs. "000"
A. Current Assets:
Account
1 receieveable 6% of 2177
sales
2 Advances and Deposits, & Prepayments 210
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Annexure - VI
Gas is filled into the vehicles with the help of dispenser. This dual hose
.dispenser is capable of handling two vehicles at a time
There are various foreign manufacturers providing the CNG filling station
equipment. In this feasibility report, a British origin compressor (Ham
worthy Compressor, Bellies & Marcum, UK, Model: H430H-WL Capacity:
400 m3/hr) has been selected. This equipment is selected because of its
low electricity consumption, higher outlet pressure, low maintenance,
durable working, longer periods between overhauls and good market
.repute and presence
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Currently, the CNG cylinders with two different capacities are installed in
the CNG fitted cars. One type of cylinder has a capacity of 6kg and the
other has a capacity of 8k.
Price are assumed to be according with the current market price that is
imposed by Govt.
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Annexure-VI-A
Production
Capacity of 400m3/hr/filling unit No. of units Filling/unit Annual filling
86400
Filling units 2 50 cars
0
Total 864000
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Annexure-VI-A
Sales Revenue:
Rupees ‘000’
Description Unit Price
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Annexure-VI-A
Raw Material:
Rs ‘000’
2009 2010 2011
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Annexure-VI-A
Labor Cost:
Direct Labor:
No. of Salary/Month Annual
Sr. Salary
Discription Employees /Worker
No. ("000")
1 Skilled 2 10000 240
2 Semi skilled 4 6000 288
Total 528
Assumptions:
1 Direct labor will increase every year @ 17%.
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Annexure-VI-A
Rs
Description ("000")
a) Fixed Cost:
Maintenance:
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Annexure-VI-A
Administrative And General Expenses:
Rupees
("000")
Sr. No. of Salary/ Annual
Designation
No. Employees Month Salary
1 Manager 1 25000 25
2 Deputy manager 1 10000 10
3 Clerk 1 8000 8
4 Watchman 2 6000 12
5 Peon/Sweeper 2 5000 10
Total 65
General Expenses:
Year Exp.
Sr. No. Description ("000")
1 Traveling Expenses 75
2 Printing & Stationary 30
3 Telephone, Telex, Postage 80
4 Entertainment 200
6 Legal & Audit 20
7 Miscellaneous 80
Total 485
Assumptions:
1 Administrative Salaries will increase @ 15% every year.
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1 Manager 1 25 29 33
2 Deputy manager 1 10 12 14
3 Clerk 1 8 9 10
4 Watchman 2 12 14 16
5 Peon/Sweeper 2 10 12 14
Total 65 74 87
General Expenses:
Sr.
No. Description Rupees ("000")
86 99
1 Traveling Expenses 75
35 40
2 Printing & Stationary 30
92 106
3 Telephone, Telex, Postage 80
230 265
4 Entertainment 200
23 26
6 Legal & Audit 20
92 106
7 Miscellaneous 80
Selling Expenses:
Sr.
Description Rupees ‘000’
No.
1 Selling Expenses .5% of Sales Revenue 181 262 381
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Annexure-VI-A
Years
Description
2009 2010 2011
Rupees ("000")
Pre-Production Expenses:
Rs.
Sr. No. Description
("000")
1 Registration Charges 350
2 NOCs 300
3 Sales Tax Registration Charges 12
4 Consultancy & Report Preparation Charges 250
5 Printing & Stationary 45
6 Conveyance Charges 35
7 Telephone & Postage 45
8 Salaries and Wages during Construction 90
Total Pre- Preproduction Expenses 1127
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Annexure-VII
Star CNG Station.
Cash Flow Statement
End of
Operating Years
Construction
SOURCES OF FUNDS:
Operating Profits - 13731 20366 33072
Add: Depreciation - 1076 1076 1076
Total Funds from Operation - 14807 21442 34148
Other Sources:
Long Term Loan - - -
Bank Borrowings - - -
Paid-Up Capital 33598 - -
Total Sources of Funds 33598 14807 21442 34148
APPLICATION OF FUNDS:
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Annexure-VIII
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Annexure-IX
BREAK-EVEN ANALYSIS
( Rs. In '000' )
Variable Fixed
Items Cost Cost Total Cost
168 168
Raw Material
00 - 00
52
Labor
528 8
Manufacturing 3 42 3
Overheads 000 2 422
10 1
Depreciation Expenses
- 76 076
Administrative & General 55 5
Expenses - 0 50
18 18
Selling Expenses
1 1
Interest / Mark-Up Expenses
- - -
Amortization of Pre-Production Expenses
376 376
199 29 229
Total:
81 52 33
362
Sales value of Production:
88
18%
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BREAK-EVEN ANALYSIS
( Rs. In '000' )
Fixed Total
Items Variable Cost Cost Cost
7509
Break-Even Point: X 100
36288 - 19981
46%
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Annexure-X
IN this project there is no long term debt so there would not be this annexure
participation.
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Annexure - XIII
FAT Oil Mills (Pvt) Limited.
Financial Plan
Rupees ("000")
Debt/Equity Ratio
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OPPORTUNITIES
THREATS/CONSTRAINS
The cost of land is the major portion of investment in this project. If any investor does
not have enough resources for the acquisition of land, he/she also has another
.alternative course of action to setup the CNG station without acquiring the land
The investor can make investments only in the purchase of CNG plant and equipment
and install this equipment with any existing petrol pump. In this case, the investment
for installing the CNG equipment will be made by the investor and the space will be
provided by the dealer/owner of the existing petrol pump. The investor will pay 15%
commission on the total revenue to the dealer/owner of the petrol pump. Moreover,
the investor can also avail lease facility from any leasing company on the purchase of
.CNG plant and equipment
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APPENDICES
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Table: Suppliers
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