solar sytem

loading12%16%18%21%26%42%52%52%63%78%96%100%

Presented byMohammad Nabeel Ilyas Sheikh

Asadullah Amin ShahMahwish Tahir Rana

Samreen Javeed

Attain and sustain business continuityThe escalating demand of alternate power

devicesProvide the required backup and control

power [voltage] fluctuationProduction UnitAssembling Unit

So, Finally the SunCatcher system is the Assembling and Distribution business.

Environmental BenefitsObtains energy from a clean, non-polluting, renewable,

dependable source.Helps to reduce the reliance on fossil fuels and natural

resources.Helps reducing global warming effect.

Economic BenefitsFreedom from increasing electricity ratesTypically, PV systems take property owners 8 to 10 years

to breakeven.The PV system generates electricity when you need it the

most.Rising cost of Utilities

Annual price increase of Electricity Increase in fuel Charges

Average Rate of Return over life of system: ~ 14%.

Home value increases $18,000 ~ $24,000 in year one. (for a 3.5 kW System according to an Appraisal Institute study)

Break-even period : ~ 5 to 8 years

The process of project appraisal depends upon the following analysis

Market and Demand Analysis Technical AnalysisFinancial Analysis Ecological Analysis

Situation Analysis “Objectives” discussed in next slide

Licensing “no such Regulatory Authority ”Company DescriptionDepartmentalizationProduct Mix Target SegmentInfluencing FactorsMarket Condition Differentiation

Production or AssemblingSources of Material Photo voltaic cells, transformers,

transfer switches, printed circuit board and housing etc

Site Development Concealed wiring electric points and switch boards

Land Requirement :2160 sq/ft (approximately) area would be required Ground floor:for store and general administrative and

marketing staff & OfficeFirst Floor: for operations (technical staff)

Land Allocation And Construction CostOperational Area (Assembling/Wiring/testing)Administration block/Office areaStorage AreaWaiting/guard room

Product Mix (stabilizers)Production Capacity to meet the market demand(Workshop “assembling unit”, Office administrative

and marketing work, warehouse “maintain inventory”, & store “”finished goods)

Project implementation Schedule

The projections cover the cost of land workshop machinery and equipment including office equipment fixtures etc

Specific assumptions relating to individual cost components areLand & Building

Rent should be less than 50,000 per month for 40 years Area should be atleast 2160 square feet in any industrial zone Rs. 3 million will be required for site development etc assumed to be depreciating at 10% per annum

To renovate the workshop / office premises in Year 5 and Year 10

Office Furniture provision of around Rs. 415,000 It include tables, desks, chairs, air conditioners and office

decoration articles, etcDepreciation Treatment:

Diminishing balance method at the rate of 10% per annum on the following Accessories & tools Building Construction & Renovation. Vehicles Furniture and Fixtures etc.

Utilities

Working Capital Requirements

Logistics minimum of one vehicle (Shahzore) cost around Rs. 500,000/- 4 motor bikes (any brand in 70 cc) which sums to Rs.160, 000/-

Selling & Distribution Expenses Amount equivalent to 5% of the annual sales is assumed

Accounts ReceivablesMiscellaneous Expenses

It is assumed to be Rs. 10,000 per month It includes various items like office stationery, consumables, etc

Raw Material Inventory Storage facility will maintain at least 5 days raw material inventory

Revenue Projections credit cum cash basis 50% credit provisioning has been assumed on total sales Receiving time span is one month initially sell rate 18 units per day and grow by 10% annually

Financial Charges long-term financing for 5 years will be obtained At a rate of 15% (including 1% insurance premium)

per annum with 60 monthly installmentsCost Of Capital The WACC is based on the debt/equity

ratio of 50:50

A total of Rs. 5.78 million will be required to setup and operate the proposed SunCatcher System Assembling business

The best investment for you and your future generation.

Reliable products with affordable prices.Requires minimal maintenance and lasts for

decades.Reliable alternative energy source.Leaves a clean, enjoyable earth to our future

generation.Manageable financing programs.