Pre-Feasibility Study

CNG 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
[email protected]

REGIONAL OFFICE REGIONAL OFFICE REGIONAL OFFICE REGIONAL OFFICE

PUNJAB SINDH KPK BALOCHISTAN

3rd Floor, Building No. 3, 5TH Floor, Bahria Ground Floor Bungalow No. 15-A
Aiwan-e-Iqbal Complex, Complex II, M.T. Khan Road, State Life Building Chaman Housing Scheme
Egerton Road Lahore, Karachi. The Mall, Peshawar. Airport Road, Quetta.
Tel: (042) 111-111-456 Tel: (021) 111-111-456 Tel: (091) 9213046-47 Tel: (081) 831623, 831702
Fax: (042) 36304926-7 Fax: (021) 5610572 Fax: (091) 286908 Fax: (081) 831922
[email protected] [email protected] [email protected] [email protected]

May 2005
Pre-Feasibility Study CNG Filling Station

1 INTRODUCTION TO SMEDA................................................................................. 2
2 Purpose of the document............................................................................................ 2
3 Crucial Factors & Steps in decision making for investment........................................ 3
3.1 Key Success Factors........................................................................................... 3
3.2 Opportunities ..................................................................................................... 3
3.3 Threats ............................................................................................................... 3
4 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
5 Market Analysis......................................................................................................... 6
5.1 Target Customers ............................................................................................... 6
5.2 Market Demand ................................................................................................. 6
5.3 Market Supply ................................................................................................... 6
5.4 Industry Growth................................................................................................. 6
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
7 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
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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

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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. All the material
included in this document is based on data/information gathered from various sources
and is based on certain assumptions. Although, 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, and the actual results may differ substantially from the presented
information. SMEDA does not assume any liability for any financial or other loss
resulting from this memorandum in consequence of undertaking this activity. 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.

For more information on services offered by SMEDA, please contact our website:
www.smeda.org.pk

DOCUMENT CONTROL
Document No. PREF-34
Revision 2
Prepared by SMEDA-Punjab
Issue Date May, 2002
Revised on May, 2005
Issued by Library Officer

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1 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.
Since its inception in October 1998, SMEDA had adopted a sectoral SME development
approach. A few priority sectors were selected on the criterion of SME presence. In depth
research was conducted and comprehensive development plans were formulated after
identification of impediments and retardants. The all-encompassing sectoral development
strategy involved recommending changes in the regulatory environment by taking into
consideration other important aspects including finance, marketing, technology and human
resource development.
SMEDA has so far successfully formulated strategies for sectors including, fruits and
vegetables, marble and granite, gems and jewelry, marine fisheries, leather and footwear,
textiles, surgical instruments, transport and dairy. 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.
Along with the sectoral focus a broad spectrum of business development services is also
offered to the SMEs by SMEDA. These services include identification of viable business
opportunities for potential SME investors. In order to facilitate these investors, SMEDA
provides business guidance through its help desk services as well as development of project
specific documents. These documents consist of information required to make well-
researched investment decisions. 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.
This document is in the continuation of this effort to enable potential investors to make
well-informed investment decisions.

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
project pre-feasibility may form the basis of an important investment decision and in order
to serve this objective, the document covers various aspects of the business concept
development, start-up, production, marketing, and finance and business management. The
document also provides sectoral information, brief on government policies and
international scenario, which have some bearing on the project itself.
This particular pre-feasibility is regarding “CNG Filling Station” which comes under
“Petroleum” sector.

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3 CRUCIAL FACTORS & STEPS IN DECISION MAKING FOR INVESTMENT

3.1 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. The daily turnover of the cars largely depends on this important factor.
 Selection of proper equipment is another key for carrying out the successful operations
of the proposed project.

3.2 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.
 Government has exempted the imposition of sales tax and custom duties on the import
of CNG kits and CNG plant and equipment,
 HDIP, a non-profitable organization working under the umbrella of Ministry of
Petroleum and Natural Resources, provides consultancy services to the interested
parties for setting up the CNG filling stations.

3.3 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

4.1 Opportunity Rationale

Due to the environment friendly nature and low cost of natural gas, Hydrocarbon
Development Institute of Pakistan (HDIP) has recognized the need and necessity to
promote the use of CNG as a fuel in automobiles. HDIP has pioneered the use of
environment friendly CNG in road transport as an economically viable fuel, which can
substitute the imported petroleum products.

4.2 Project Brief

The business of CNG filling station has marked its place in the country through growth
during the last few years. This growth has opened up new opportunities and more CNG
filling stations are being setup all over Pakistan. The prime reason for this is the low cost of
the fuel. Along with that, CNG fuel is less hazardous to the environment as compared to
the traditional petroleum fuel.

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4.3 Introduction to CNG

Natural Gas is one of the most valuable natural resources abundantly available in our
country. The people of Pakistan have been using the petroleum products as a fuel in their
automobiles, thus spending a huge amount of foreign exchange on import of petroleum
products. Moreover, 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. Due to the efforts
made by the Government and comparatively low prices of gas, more than 600,000*
vehicles have already been converted to operate on Compressed Natural Gas (CNG)
fueling system all over Pakistan.
Due to high cost of petroleum products, lots of vehicles are switching over to CNG. At
present, 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.
The total project cost for setting up the CNG filling stations has been estimated at Rs.31.13
million. It includes land, building, CNG equipment and machinery, spares, 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. 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.

4.4 Proposed Business Legal Status

The proposed legal structure of the business entity is either sole proprietorship or
partnership. Although selection totally depends upon the choice of the entrepreneur but this
financial feasibility is based on a Sole Proprietorship.

4.5 Project Cost

The cost of project has been estimated as Rs.31.13 million including land, civil works,
CNG equipment and office equipment. Preliminary expenses and gas security charges are
estimated at Rs.0.82 million and Rs.1.8 million respectively. The CNG equipment
comprises of gas compressor, dual hose dispenser, electric control panel, and storage
cascades/cylinders.

Table 4-1 Project Investment

Fixed Investment Rs. 30,750,140
Working Capital Rs. 377,390
Total Investment Rs. 31,127,530
The proposed pre-feasibility is based on the assumption of 50% debt and 50% equity.
However this composition of debt and equity can be changed as per the requirement of the
investor.
The project seems to be viable with the following returns on investment.

1
Source: International Association of Natural Gas Vehicles (IANGV) Feb, 2005 Statistics
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Table 4-2 Project Returns

Internal rate of return (project) 23.1%
Internal rate of return (equity) 45.1%
Net Present Value @ 20% Rs. 3,401,246
Payback period – based on cash inflows 4 years

4.6 Viable Economic Size

A minimum of 202 cars is required to be filled daily in order to operate at breakeven.
Considering the market trends and number of vehicles being converted into CNG fueling
system, initially the project would be able to attract and serve at-least 202 vehicles per day.

4.7 Proposed Capacity

The equipment for CNG filling station that has been considered for preparing this pre-
feasibility study is of British origin. This equipment is relatively more efficient and
effective of the all types of equipment available in the market. Various other types of
equipment are also available at a lower price. The chosen equipment is capable of refueling
50 vehicles per hour. Twin hose dispenser accompanies this equipment and it handles
refueling of two vehicles at a time.

4.8 Proposed Location

The proposed locations for the CNG Filling stations in Lahore are as follows
 Multan Road, Lahore
 Wapda Town, Lahore
 Model Town, Link Road, Lahore
 Johar Town, PIA Colony
The said project may also be established in commercial area of any other city.

4.9 CNG Policy

The Government of Pakistan has offered number of incentives for encouraging the use of
CNG in the country. 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, CNG kits and cylinders

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This has provided a boost to the industry, and so far, more than 600,000 vehicles have been
converted to CNG and 6702 CNG stations are operational. According to International
Association for Natural Gas Vehicles (IANGV) statistics, Pakistan is ranked third in the
CNG-using countries after Argentina and Brazil.

4.10 CNG Consultancy Services

HDIP is also offering consultancy services to the investors, which include the whole range
of activities like formation of company, selection of site, legal formalities, design of
station, specifications of the equipment, selection of equipment, selecting and appointing
the contractor, training of manpower, commissioning and supervision, etc.

5 MARKET ANALYSIS
The commercial application of CNG technology now forms an important element of
Government’s petroleum policy, which is reflected in the efforts made by the government
for installing 670 CNG stations in the country and converting 600,000 vehicles on CNG
fueling system till February 2005.

5.1 Target Customers

The target customers for the proposed project would be the vehicles running on CNG fuel.

5.2 Market Demand

At present there are more than 600,000 vehicles, which have been converted to CNG fuel,
and a large number of vehicles are further being converted.
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.

5.3 Market Supply

Total number of CNG stations in Pakistan is only 670, which is quite low for meeting the
growing demand of CNG. Apart from these 670 CNG stations, many new CNG stations are
being setup across the country.

5.4 Industry Growth

There has been a tremendous growth in the CNG sector over the yeas. 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 vehicles

2
As on Feb, 2005
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and 220 stations respectively and by the year 2005 they have tremendously grown up to
670 CNG Stations and 600,000 CNG fitted vehicles. 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. Of Vehicles on CNG 450,000 600,000 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.

6 REGULATIONS, 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. The cost associated with this license is Rs.25,000.

6.2 Certificate (by HDIP)

After the installation of the required equipment for CNG filling station, HDIP will inspect
the working of the equipment, and once satisfied, will issue a certificate verifying that the
installed equipment is up to the required standards. The cost associated with this
certification is Rs. 35,000.

6.3 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.100,000.

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6.4 Incentives

6.4.1 Sales Tax

The import of CNG equipment is exempted from sales tax vide SRO No.38 (1)/98 dated
21st January 1998 till June, 2005.
6.4.2 Custom Duty
The CNG equipment is also exempted from the custom duties as per the above-referred
SRO.

6.5 Regulatory Requirements

6.5.1 Quality Certificate

SRO.38 (1)/98 dated 21st January 1998 has been amended on April 11, 2002 and the
“Quality Certificate” from original manufacturer has been made mandatory. This certificate
should state that the equipment meets the safety standard as laid down in Pakistan CNG
Rules 1992. The designated third party inspector witnesses this Quality Certificate. The
cost of third party inspection is $500.

6.5.2 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.

6.5.3 Income Tax on the Import of CNG Equipment

Income Tax, at the rate of 6%, is payable by the importer on the import of CNG equipment.

6.6 Income Tax

The income of the CNG filling station is not exempted from the income tax. The investor
has to pay tax on his/her income according to the nature of the business entity. The current
project is being operated as a private limited company, so the income tax is payable at the
rate of 45%.

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7 THE PROJECT CONCEPT

7.1 Project Cost

The details of the cost of project are as follows:

Table 7-1 Project Costs

Item Rupees
Land (9,000 Sq. ft) 17,000,000
Building – Civil Works 1,700,000
CNG Equipment 8,732,100
Stores & Spares 513,040
Office Equipment 100,000
Furniture & Fixtures 85,000
Gas Security 1,800,000
Preliminary Expenses 820,000
Working Capital 377,390
Total 31,127,530

7.2 Project Financing

The total cost of the project is Rs.31.13 million including the working capital of Rs.0.377
million. The sponsors of the project will contribute Rs.15.56 million and the bank will
finance the remaining amount of Rs.15.56 million.

7.3 Project Details

7.3.1 Location
For setting up a CNG filling station, location is the prime factor. As per the requirements of
the Government of Pakistan, the filling station must be situated in a commercial area. CNG
filling stations are not allowed to be installed in the residential areas.

7. 3. 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. An amount of Rs.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. A comparison of costs of
commercial land in various other areas of Lahore is given below for reference purpose.

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Table 7-2 Approximate Cost of Land in the Proposed Areas

Location Price Range for 9,000 Sq.ft
Gulberg, M. M. Alam Road. Rs.16,000,000–18,000,000
Main Boulevard Rs. 30,000,000—32,000,000
Main Ferozpur Raod Rs.10,000,000–12,000,000
Model Town Link Road Rs.7,000,000–9,000,000
Multan Road Rs.2,000,000–10,000,000
Johar Town, PIA Colony Rs.18,000,000–35,000,000
In this report, prices of commercial land for Lahore city has been considered, however,
prices may considerably vary in the other cities like Quetta, Karachi, Hyderabad, Multan,
Faisalabad, Islamabad, Peshawar etc.

7. 3. 3 B ui l di ng
There are certain civil works required to be carried out at the proposed location. The civil
works would be carried out on an area of 2250 square feet. The rest of the area will be
floored with tuff tiles. 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.1.7 million. Details for the said cost are as
follows:

Table 7-3 Construction Cost (Amount in Rupees)

Description Cost per Sq. ft. Cost
Office, control room, compressor and cylinder storage 500 1,125,000
room, shed and toilet/washroom (2,250 sq.ft)
Underground gas piping - 200,000
Flooring (6,750sq.ft) 45 303,750
Contingencies - 71,250
Total Cost - 1,700,000
Explosives department has laid down certain specifications for the compressor and
cascade/cylinders storage room, which are as follows:
1. Minimum one meter distance is required between walls and compressor.
2. Minimum distance of one meter should be kept between compressor and
cascade/cylinders.

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3. Fire rated walls3 must be used in the compressor and cylinder storage room.
4. Roof of the compressor and storage room should not be of permanent nature4.

7.3.4 Material Inputs

There are two main inputs required for the CNG filling station, one is the natural gas and
the other is electricity. The sponsor of the project is required to obtain both the connections
from the relevant authorities i.e. WAPDA and Sui Northern Gas Pipelines Limited
(SNGPL) or Sui Southern Gas Pipelines Limited (SSGPL). The cost associated with
obtaining the gas connection is Rs.75, 000/-. In addition to this, a minimum security
deposit of Rs.1.8million is also required to be deposited with the concerned authority.
Bank guarantee is also acceptable in case of gas security. An amount of Rs.0.35 million is
required for obtaining electricity connection. There is no security deposit required for the
electricity connection.

7.3.5 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. This compressor requires an input pressure of 8 or 15 PSIG5 from the main gas
supply with the outlet pressure of 3,625 PSIG. With this discharge pressure, the equipment
can refuel 50 vehicles per hour.
 Electric Control Panel
Electric control panel is required to operate the gas compressor. This panel will be mounted
in the control room.
 Storage Cascade
Storage cascades/cylinders are used to store the natural gas.
 Priority Panel for Vehicle Priority
During rush hours, the compressor is directly connected to the dispenser, bypassing the
storage cascades/cylinders with the help of priority panel, facilitating the refueling of
vehicles at a faster rate.
 CNG Dispenser high flow dual hose
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 pre-feasibility report, a British origin compressor6 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.

3
with RCC (Reinforced cement concrete) structure
4
Corrugated asbestos might be used as the roof for the compressor and cylinder storage room to prevent the
compressor and cylinders from heat.
5
pounds per square inch gauge pressure
6
Ham worthy Compressor, Bellies & Marcum, UK, Model: H430H-WL Capacity: 400 m3/hr
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Different gas pressures are available in different areas of Pakistan from the main gas supply
line. The pressure of 15 PSIG is not easily available at every location. Where the gas
pressure of 15 PSIG is not available, in that situation, the model with inlet pressure of 8
PSIG is used, which has been manufactured to operate at a lower gas pressure. However,
the consumption of electricity increases.
The total capacity of the selected equipment is 400M3/Hr with a total power load of 93
KW.
All the CNG filling station equipment is foreign manufactured and imported on the specific
requirement of the sponsor by the authorized agent. Usually, the equipment is delivered
within 12 to 16 weeks from the receipt of purchase order and initial payment. The details of
this equipment and accessories are available in Annexure # 1.1.1.

7.3.6 Suppliers
The Central Board of Revenue (CBR) has specified the list of compressors, storage
cylinders, CNG vehicle cylinders, CNG machinery & equipment and conversion kits in
SRO 38(1)/98. For the convenience of investor, a list of some of the available equipment
and machinery is given below:

Table 7-4 Supplier’s Name

Supplier’s Name Available Models
Rix Services, New Zealand 2JJS3G-178, FX-150, 3KX3G-40,
6W5G-150
Compare UK Ltd, UK Gazpack 36, Gazpack37
Norwalk Company Inc. USA C-75-3, C150-4, NQSV3
Sulzer Burckhardt Engg. Works Switzerland C40111S, C50214S
Hamworthy, Bellis & Morcom UK H430H-WL, H280H-WL, V130H-WL
Safe s.r.l Italy SW75SE-F1-EM, SW110SE-F1-EM,
SW110-F1-EM, SW132-F1-EM,
SW90F0, 35-EM
Hurricane, Grimmer Industries, USA CNG90, CNG 125, CNG250
Chengdu Jinxing Chemical Machinery and ZW-3.45/250JX, ZW-5.0/1-23, ZW-
Equiment Factory, China 5.52/0.5-250JX
Chonqing Air Gas Compressor Factory, China L-3.8/1-250, L-3/1-250, L-5/0.56-250,
L-2.9/0.56-250, L-4.65/0.56-250,
W3.8/0.56-250, W-3.8/1-250
Intermech Ltd. NewZealand RHINO PAR-75VE 4-8
RHINO PAR-1-DE 4-82
RHINO-PAR 150DE4-10
Unigas NewZealand Apollo VR-550
Compare Mahle GmbH, Germany 5409.2NG.EU
Sicom SRL , Italy 650.250.20-IFDE-23SE

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7.3.7 Stores & Spares

The whole equipment required for setting up a CNG filling station is imported. Therefore,
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. For this
purpose, a stock of necessary spare parts worth $8,000 will be imported along with other
equipment to maintain a minimum level of spare parts.

7.3.8 Furniture and Fixtures

Furniture and fixtures mainly include tables, chairs, sofas, fans & lights, carpet, curtains
and fire extinguishers. It is estimated that the furniture and fixtures of Rs.85,000 would be
purchased.

7.3.9 Office Equipment

Some office equipment is also required for the proposed project. A provision of Rs.100,000
ha been made for acquiring the required office equipment. The details of office equipment
are annexed in Annexure # 1.1.

7.4 Manpower Requirement

Manpower requirement for the CNG filling station includes manager, cashier, dispenser,
operators, accountant, watchman and sweeper. The total staff strength would be 13 persons
for the two shifts. The staff salaries for year one are as follows:

Table 7-5 Human Resource Requirement

Designation No. of Salary per Total salary
Employees for month per month
two shifts (Rupees)
Manager 1 20,000 240,000
Deputy Manager 1 10,000 120,000
Accountant 1 6,000 72,000
Cashier 2 4,500 108,000
Dispenser 4 3,500 168,000
Operator 2 5,500 132,000
Watchmen 2 3,500 84,000
Sweeper 1 2,500 30,000
Total 954,000

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8 BASIS FOR FINANCIAL PROJECTIONS

8.1 Inflation Rate

10% inflation rate has been considered while making the projections for cost of sales,
operational expenses and salaries. The prices for gas, electricity, operational expenses and
staff salaries are increased by 10% every year as a result of inflation.
The selling price of gas has been increased by 5% every year.

8.2 Revenue Assumptions

8.2.1 No. of Cars

Based on the survey of some CNG stations in Lahore, the number of cars assumed for
revenue projections is as follows:

Table 8-1 Detailed Projected Increase in Cars

Years No. Of Cars
1 202
2 303
3 363
4 435
5 522
6 600
7 690
8 793
9 911
10 1,047
The average number of cars in the first years is estimated at 202 cars per day, starting from
120 cars per day in the first month and going up to 290 cars per day in the 12th month.. In
the second year, it has increased to 303 cars per day. After second year, number of cars is
increasing at a rate of 20% till fifth year because the project would be in its growth stage.
An increase of 15% has been considered from sixth year, because at that time, the project
would be at its maturity stage.

8.2.2 Gas per Vehicle

Currently, the CNG cylinders with two different capacities are installed in the CNG fitted
cars. One type of cylinder has a capacity of 40 kg and the other has a capacity of 50 kg.
Gas of 6.6 and 11.12 cubic meter can be filled in the cylinders of 40kg and 50kg
respectively. A weighted average of 9.31 cubic meters of gas per vehicle has been taken for
the revenue calculations.

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Table 8-2 Average Volume

Cylinder Type Volume Percentage Use
(cubic meters)
40 kg 6.6 40%
50 kg 11.12 60%
Weighted Average Volume 9.31 cubic meters

8.3 Depreciation on Assets

8.3.1 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 5%
CNG Plant & Equipment 10%
Office Equipment 20%
Furniture & Fixture 10%

8.3.2 Taxable Profit

For the purpose of calculating taxable profit, depreciation is calculated on the rates as per
the Income Tax Law, which is as follows:

Table 8-4 Tax Adjustments

Land 0%
Building 5%
CNG Plant & Equipment 10%
Office Equipment 10%
Furniture & Fixture 10%

8.4 First Year Allowance

Other than the normal depreciation allowances, first year allowance is also provided on the
newly installed CNG plant and equipment for the purpose of providing benefit to the
entrepreneur. The first year allowance is calculated at 40% of written down value of CNG
plant and equipment.

8. 5 Multiple Shift Allowance

In addition to normal depreciation and first year allowances, multiple shift allowance is
also provided for the plant and machinery, which operates on double or triple shift basis. 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
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equipment for all the ten years. Multiple shift allowance has been taken as 66.6% of the
normal depreciation allowance.

8. 6 Amortization of Preliminary Expenses

Preliminary expenses amounting to Rs.820, 000/- will be amortized at the rate of 20% per
annum.

8.7 Working Capital

Working capital is calculated on the basis of following assumptions:

8.7.1 Accounts Receivables

Mostly, the sale of CNG is on cash basis. However, some CNG stations do offer a credit
facility to reputable companies on agreed terms and conditions. Therefore, receivables are
estimated at 6% of the total sales amount.

8.7.2 Advances to Employees

Advances to employees are calculated on the basis of 30 days of both payroll and staff
benefits.
8.7.3 Accrued Utilities and Power Expenses
Normally, it would take 20 days to deposit the utilities (electricity, water and telephone)
bills. Therefore, utility expenses for 20 days have been taken as the basis for working
capital computation.

8.7.4 Accounts Payable

Cost of gas and electricity for 20 days has been considered in calculating accounts payable.

8.7.5 Sales Tax Payable

Every company is required to deposit the amount of sales tax collected from the consumers,
within 14 days. The same has been taken as the basis for calculating the amount of sales tax
payable.

8.8 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. These funds are deposited after every 14 days in favor of
Government of Pakistan.

8.9 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.

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8.10 Alternative Investment Opportunity

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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9 FINANCIAL ANALYSIS

9.1 Project Costs

P ro je c t C o s t
R s. R s.
A s s e ts
Land 1 7 ,0 0 0 , 0 0 0
B u ild in g - C iv il W o r k s 1 ,7 0 0 ,0 0 0
C N G E q u ip m e n t $ 1 3 3 ,9 0 0 8 ,7 3 2 ,1 0 0
Sto re & Sp a re s $ 8 ,0 0 0 5 1 3 ,0 4 0
O ffic e E q u ip m e n t 1 0 0 ,0 0 0
F u r n itu r e & F ix t u r e 8 5 ,0 0 0 2 8 ,1 3 0 ,1 4 0
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 ) 1 ,8 0 0 ,0 0 0
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 ) 7 5 ,0 0 0
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 3 5 0 ,0 0 0
Local E xpe nses 1 0 0 ,0 0 0
L ic e n s e fr o m M O P 2 5 ,0 0 0
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 ) 8 5 ,0 0 0
I n s p e c t io n F e e ( H D I P ) 3 5 ,0 0 0
O th e r A p p r o v a ls ( N O C s ) 1 0 0 ,0 0 0
T r a v e llin g & C o n v e y a n c e 2 0 ,0 0 0
O th e r E x p e n s e s 3 0 ,0 0 0 8 2 0 ,0 0 0

W o r k in g C a p i t a l 3 7 7 ,3 9 0
T o ta l A s s e ts R s . 3 1 ,1 2 7 ,5 3 0
T o t a l C a p i t a l E m p lo y e d B y :
Bank Loan 50% 1 5 ,5 6 3 ,7 6 5
E q u ity 50% 1 5 ,5 6 3 ,7 6 5
T o t a l C a p it a l R s . 3 1 ,1 2 7 ,5 3 0

1 US$ = Rs. 6 0 .5 0
P ro je c t R e tu rn s
IR R % 2 3 .1 %
NPV @ 20% R s. 3 ,4 0 1 ,2 4 6
P a y B a c k P e r io d Y rs. 4

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9.2 Projected Income Statement

Statement Summaries
Income Statement
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

Gross Sales 13,139,090 20,375,524 25,673,161 32,303,626 40,702,568 49,123,789 59,316,976 71,580,116 86,342,950 104,194,426
Less: Sales Tax 1,714,651 2,659,006 3,350,347 4,215,623 5,311,685 6,410,655 7,740,865 9,341,205 11,267,755 13,597,373
Net Sales 11,424,439 17,716,518 22,322,813 28,088,003 35,390,883 42,713,135 51,576,110 62,238,911 75,075,195 90,597,054

Cost of Sales 5,516,754 8,937,181 11,766,663 15,474,153 20,382,143 25,720,252 32,478,303 40,992,720 51,725,438 65,304,354
Gross Profit 5,907,685 8,779,338 10,556,150 12,613,850 15,008,740 16,992,883 19,097,807 21,246,191 23,349,757 25,292,699

Operating Expenses:
Operating Expenses 2,032,005 2,147,885 2,284,084 2,441,762 2,622,282 2,896,712 3,120,922 3,374,100 3,658,487 3,976,614
Depreciation 986,710 890,289 803,698 725,883 810,345 731,953 661,391 597,852 540,615 489,037
Amortization of Preliminary Exp. 164,000 164,000 164,000 164,000 164,000 - - - - -
3,182,715 3,202,174 3,251,782 3,331,646 3,596,627 3,628,665 3,782,313 3,971,951 4,199,101 4,465,652
Operating Profit 2,724,970 5,577,164 7,304,369 9,282,204 11,412,113 13,364,218 15,315,494 17,274,240 19,150,656 20,827,048

Interest on Loan 1,089,464 1,852,088 1,416,303 980,517 544,732 108,946 - - - -

Interest on Lease - - - - - - - - - -
1,089,464 1,852,088 1,416,303 980,517 544,732 108,946 - - - -
Profit before Tax 1,635,507 3,725,076 5,888,066 8,301,687 10,867,382 13,255,272 15,315,494 17,274,240 19,150,656 20,827,048
Taxation (See working) 57,122 487,101 2,126,398 2,976,423 3,841,159 4,687,398 5,415,542 6,105,492 6,764,544 7,351,985
Profit after Tax 1,578,384 3,237,975 3,761,668 5,325,264 7,026,222 8,567,874 9,899,952 11,168,748 12,386,112 13,475,063
Balance B/F - 1,578,384 4,816,359 8,578,027 13,903,291 20,929,514 29,497,388 39,397,339 50,566,087 62,952,199
Retained Earnings 1,578,384 4,816,359 8,578,027 13,903,291 20,929,514 29,497,388 39,397,339 50,566,087 62,952,199 76,427,262
- - - - - - - - - -
Balance C/F 1,578,384 4,816,359 8,578,027 13,903,291 20,929,514 29,497,388 39,397,339 50,566,087 62,952,199 76,427,262

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9.3 Projected Balance Sheet

Statement Summaries
Balance Sheet
YEAR Start up 1 2 3 4 5 6 7 8 9 10

FIXED ASSETS 27,617,100 26,630,390 25,740,101 24,936,403 24,210,520 24,944,476 24,212,523 23,551,132 22,953,280 22,412,665 21,923,628
27,617,100 26,630,390 25,740,101 24,936,403 24,210,520 24,944,476 24,212,523 23,551,132 22,953,280 22,412,665 21,923,628

Preliminary Expenses 820,000 656,000 492,000 328,000 164,000 - - - - - -

28,437,100 27,286,390 26,232,101 25,264,403 24,374,520 24,944,476 24,212,523 23,551,132 22,953,280 22,412,665 21,923,628
OTHER ASSETS
Security 1,800,000 1,800,000 1,800,000 1,800,000 1,800,000 1,800,000 1,800,000 1,800,000 1,800,000 1,800,000 1,800,000
- - - - - - - - - - -
1,800,000 1,800,000 1,800,000 1,800,000 1,800,000 1,800,000 1,800,000 1,800,000 1,800,000 1,800,000 1,800,000
CURRENT ASSETS
Accounts Receivables - 793,364 1,230,314 1,550,195 1,950,556 2,457,700 2,966,190 3,581,674 4,322,147 5,213,555 6,291,462
Advances to Employees - 87,450 96,195 105,815 116,396 128,036 140,839 154,923 170,415 187,457 206,203
Stores & Spares 513,040 513,040 513,040 513,040 513,040 513,040 513,040 513,040 513,040 513,040 513,040
Cash & Bank Balances 377,390 1,042,927 1,999,944 3,469,418 6,398,351 9,535,653 17,094,942 27,451,315 38,994,185 51,680,102 65,388,343
890,430 2,436,781 3,839,493 5,638,468 8,978,343 12,634,428 20,715,011 31,700,953 43,999,787 57,594,154 72,399,047
TOTAL ASSETS 31,127,530 31,523,171 31,871,594 32,702,872 35,152,863 39,378,904 46,727,534 57,052,084 68,753,067 81,806,819 96,122,675
- - - - - - - - - - -
CAPITAL EMPLOYED REPRESENTED BY:

SHARE CAPITAL
1,556,377 Shares @ Rs.10/- each 15,563,765 15,563,765 15,563,765 15,563,765 15,563,765 15,563,765 15,563,765 15,563,765 15,563,765 15,563,765 15,563,765
UNAPP. PROFIT/(LOSS) - 1,578,384 4,816,359 8,578,027 13,903,291 20,929,514 29,497,388 39,397,339 50,566,087 62,952,199 76,427,262
15,563,765 17,142,149 20,380,124 24,141,792 29,467,056 36,493,279 45,061,153 54,961,104 66,129,852 78,515,964 91,991,027
LONG TERM LIABILITIES
Finance Lease - - - - - - - - - - -
Long Term Loan 15,563,765 14,007,389 10,894,636 7,781,883 4,669,130 1,556,377 - - - - -
15,563,765 14,007,389 10,894,636 7,781,883 4,669,130 1,556,377 - - - - -
CURRENT LIABILITIES
Creditors - 296,952 482,429 636,806 839,426 1,108,042 1,400,973 1,772,231 2,240,459 2,831,228 3,579,282
Utility Bills Payable - 10,000 11,000 12,100 13,310 14,641 16,105 17,716 19,487 21,436 23,579
Sales Tax Payable - 66,681 103,406 130,291 163,941 206,566 249,303 301,034 363,269 438,190 528,787
- 373,633 596,834 779,197 1,016,677 1,329,249 1,666,381 2,090,980 2,623,215 3,290,855 4,131,648
TOTAL 31,127,530 31,523,171 31,871,594 32,702,872 35,152,863 39,378,904 46,727,534 57,052,084 68,753,067 81,806,819 96,122,675

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9.4 Projected Cash Flow Statement

Statement Summaries
Cash Flow Statement
YEAR 1 2 3 4 5 6 7 8 9 10
SOURCES
FROM OPERATION
Profit Before Tax 1,635,507 3,725,076 5,888,066 8,301,687 10,867,382 13,255,272 15,315,494 17,274,240 19,150,656 20,827,048
Add: Depreciation 986,710 890,289 803,698 725,883 810,345 731,953 661,391 597,852 540,615 489,037
Amortization 164,000 164,000 164,000 164,000 164,000 - - - - -

1,150,710 1,054,289 967,698 889,883 974,345 731,953 661,391 597,852 540,615 489,037
2,786,217 4,779,365 6,855,764 9,191,570 11,841,727 13,987,225 15,976,885 17,872,091 19,691,271 21,316,085
OTHER SOURCES
- - - - - - - - - -
2,786,217 4,779,365 6,855,764 9,191,570 11,841,727 13,987,225 15,976,885 17,872,091 19,691,271 21,316,085

APPLICATION
Repayments of Loan 1,556,377 3,112,753 3,112,753 3,112,753 3,112,753 1,556,377 - - - -
Tax Payment 57,122 487,101 2,126,398 2,976,423 3,841,159 4,687,398 5,415,542 6,105,492 6,764,544 7,351,985
Dividend Paid
- Cash - - - - - - - - - -
1,613,499 3,599,854 5,239,151 6,089,176 8,498,213 6,243,774 5,415,542 6,105,492 6,764,544 7,351,985
SURPLUS / (DEFICIT) 1,172,718 1,179,511 1,616,612 3,102,395 3,343,514 7,743,450 10,561,343 11,766,599 12,926,727 13,964,100

INCREASE/(DECREASE) IN WORKING CAPITAL 507,181 222,493 147,138 173,462 206,212 184,161 204,970 223,729 240,811 255,859
NET INCREASE/(DECREASE) 665,537 957,017 1,469,474 2,928,933 3,137,302 7,559,290 10,356,373 11,542,870 12,685,916 13,708,241
OPENING BANK BALANCES 377,390 1,042,927 1,999,944 3,469,418 6,398,351 9,535,653 17,094,942 27,451,315 38,994,185 51,680,102

CLOSING CASH BALANCE 1,042,927 1,999,944 3,469,418 6,398,351 9,535,653 17,094,942 27,451,315 38,994,185 51,680,102 65,388,343

WORKING CAPITAL 507,181 729,674 876,813 1,050,275 1,256,487 1,440,648 1,645,617 1,869,346 2,110,157 2,366,017

Increase 507,181 222,493 147,138 173,462 206,212 184,161 204,970 223,729 240,811 255,859

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9.5 Revenues
Revenues

Quantity of Gas Sale per Vehicle 9.31 Cubic Meter

Annual Increase in the Sale Price of Gas 5%

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

255
No. of Cars / day 202 Cars 303 Cars 363 Cars 435 Cars 522 Cars 600 Cars 690 Cars 793 Cars 911 Cars 1047 Cars

Sale of Gas / day (in M3) 1878 2816 3380 4050 4860 5586 6424 7383 8481 9748
3
Sale of Gas / month (in M ) 57206 84488 101386 121496 145795 167580 192717 221485 254442 292427
3
Sale of Gas / anum (in M ) 686473 1013859 1216631 1457946 1749535 2010960 2312604 2657819 3053308 3509125
3
Selling Price of Gas / M Rs. 19.14 Rs. 20.10 Rs. 21.10 Rs. 22.16 Rs. 23.26 Rs. 24.43 Rs. 25.65 Rs. 26.93 Rs. 28.28 Rs. 29.69

Total Revenue 13,139,090 20,375,524 25,673,161 32,303,626 40,702,568 49,123,789 59,316,976 71,580,116 86,342,950 104,194,426

Sales Tax @ 15% Rs. 2.50 Rs. 2.62 Rs. 2.75 Rs. 2.89 Rs. 3.04 Rs. 3.19 Rs. 3.35 Rs. 3.51 Rs. 3.69 Rs. 3.87

Sales Tax Amount Rs. 1,714,651 Rs. 2,659,006 Rs. 3,350,347 Rs. 4,215,623 Rs. 5,311,685 Rs. 6,410,655 Rs. 7,740,865 Rs. 9,341,205 Rs. 11,267,755 Rs. 13,597,373

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9.6 Cost of Sales

Cost of Sales

Rate of Gas Rs. 6.50 /Cubic Meter

Consumption of Electricity 0.186 KW /Cubic Meter
Rate of Electricity Rs. 6.92 /KWHr
Maintenance Rs. 0.25 /Cubic Meter
Annual Increase 10%
Year 1 Year 2 Year 3 Year 4 Year 5 Year6 Year 7 Year 8 Year 9 Year 10
No. of Cars / day 202 Cars 303 Cars 363 Cars 435 Cars 522 Cars 600 Cars 690 Cars 793 Cars 911 Cars 1047 Cars
Annual Gas Sold (in M3) 686,473 1,013,859 1,216,631 1,457,946 1,749,535 2,010,960 2,312,604 2,657,819 3,053,308 3,509,125
Electricity Consumed in KWH 127,684 188,578 226,293 271,178 325,414 374,039 430,144 494,354 567,915 652,697
Rate of Gas Rs. 6.50 Rs. 7.15 Rs. 7.87 Rs. 8.65 Rs. 9.52 Rs. 10.47 Rs. 11.52 Rs. 12.67 Rs. 13.93 Rs. 15.33
Rate of Electricity Rs. 6.92 Rs. 7.61 Rs. 8.37 Rs. 9.21 Rs. 10.13 Rs. 11.14 Rs. 12.25 Rs. 13.48 Rs. 14.83 Rs. 16.31
Cost of Sales
Cost of Gas Sold 4,462,074 7,249,092 9,568,801 12,613,420 16,649,714 21,051,363 26,629,974 33,665,690 42,542,734 53,783,169
Cost of Electricity 883,062 1,434,624 1,893,704 2,496,246 3,295,045 4,166,149 5,270,178 6,662,575 8,419,377 10,643,904
Maintenance 171,618 253,465 304,158 364,487 437,384 502,740 578,151 664,455 763,327 877,281

Cost of Sales 5,516,754 8,937,181 11,766,663 15,474,153 20,382,143 25,720,252 32,478,303 40,992,720 51,725,438 65,304,354

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9.7 Working Capital

Working Capital
1 2 3 4 5 6 7 8 9 10
Total No. of Days 360 Days
Current Assets Basis
Receivables Sales 25 793,364 1,230,314 1,550,195 1,950,556 2,457,700 2,966,190 3,581,674 4,322,147 5,213,555 6,291,462

Advances to Employees Payroll+Benefits 30 87,450 96,195 105,815 116,396 128,036 140,839 154,923 170,415 187,457 206,203
Stores & Spares Stock - - - - - - - - - - -
TOTAL CURRENT ASSETS 880,814 1,326,509 1,656,010 2,066,952 2,585,736 3,107,029 3,736,597 4,492,562 5,401,012 6,497,665
Current Liabilities
Accrued Utilities & Power
Expenses Utilities Expenses 20 10,000 11,000 12,100 13,310 14,641 16,105 17,716 19,487 21,436 23,579
Accounts Payable Cost of Gas & Electricity 20 296,952 482,429 636,806 839,426 1,108,042 1,400,973 1,772,231 2,240,459 2,831,228 3,579,282
Sales Tax Payable Sales Tax 14 66,681 103,406 130,291 163,941 206,566 249,303 301,034 363,269 438,190 528,787

TOTAL CURRENT LIABILITIES 373,633 596,834 779,197 1,016,677 1,329,249 1,666,381 2,090,980 2,623,215 3,290,855 4,131,648

NET WORKING CAPITAL 507,181 729,674 876,813 1,050,275 1,256,487 1,440,648 1,645,617 1,869,346 2,110,157 2,366,017

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9.8 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 51.71% 49.55% 47.29% 44.91% 42.41% 39.78% 37.03% 34.14% 31.10% 27.92%
Operating Profit 23.85% 31.48% 32.72% 33.05% 32.25% 31.29% 29.69% 27.75% 25.51% 22.99%
Net Profit before tax 14.32% 21.03% 26.38% 29.56% 30.71% 31.03% 29.69% 27.75% 25.51% 22.99%
Profit after Tax 13.82% 18.28% 16.85% 18.96% 19.85% 20.06% 19.19% 17.94% 16.50% 14.87%
Return on Investment (ROI) 5.01% 10.16% 11.50% 15.15% 17.84% 18.34% 17.35% 16.24% 15.14% 14.02%
Return on Equity (ROE) 9.21% 15.89% 15.58% 18.07% 19.25% 19.01% 18.01% 16.89% 15.78% 14.65%
Earning per Share (EPS) Rs. 1.05 Rs. 2.39 Rs. 3.78 Rs. 5.33 Rs. 6.98 Rs. 8.52 Rs. 9.84 Rs. 11.10 Rs. 12.30 Rs. 13.38
Dividend per Share Rs. - Rs. - Rs. - Rs. - Rs. - Rs. - Rs. - Rs. - Rs. - Rs. -
Liquidity Ratios
Current Ratio 6.52 6.43 7.24 8.83 9.50 12.43 15.16 16.77 17.50 17.52
Debt Ratios
Debt Ratio (of total assets) 44.44% 34.18% 23.80% 13.28% 3.95% 0.00% 0.00% 0.00% 0.00% 0.00%
Debt Equity 81.7% 53.5% 32.2% 15.8% 4.3% 0.0% 0.0% 0.0% 0.0% 0.0%
Interest Coverage Ratio 2.50 3.01 5.16 9.47 20.95 122.67 0.00 0.00 0.00 0.00

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10 REQUIREMENT FOR THE LICENSE

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Annexure 10 Requirement for the License

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