Green Industries

GREEN INDUSTRIES
Business Plan
Plastic Recycling plant
Apoorva Doshi (65185)
Mohammed Oovais(66211)
2012
Industry Overview:
In the last few decades, the Indian Plastic industry has been a leading sector in the country with the
sizable base. The material is gaining notable importance in different spheres of activity and per
capita consumption is increasing at a fast pace. Continuous advancements and developments in
polymer technology, processing machineries, expertise and cost effective manufacturing is fast
replacing the typical materials in different segments with plastics.
The turnover of the plastic industry has touched 1000 billion rupees in 2012 on the basis of the
expected growth of the demand potential to 12.5 million tons from the current 9 million tonnes.The
consumption per capita of the industry is 2.5times of the countrys GDP. The consumption of the
fresh granules is 5.3 million metric tonnages in 2011. There are more than 25000 players in this
processing industry. The study shows that the industry hires currently 4 million people in 2012 and
expected to hire 7 million people in 2015.
The one critical factor about the Indian plastic industry is the common perception that plastic is not
environmentally friendly. This primarily is due to the low awareness about the energy saving
property of plastics and the benefits to industries that utilize the plastics. India has the lowest per
capita consumption in the world and the highest recycler of plastics. In India, we recycle 60%from
both industry and the urban waste as compared to the world average 20-25%.
When compared to the plastic manufacturing firm, a plastic recycling firm can employ approximately
7 times more people. As well India is concerned; Indians require more employment opportunities
also. As the plastic recycling also contributes a good will to the environment and this industry
definitely has a good future.
MISSION
People believe in making it from Rags to Riches. We believe in making it from Scrap to Riches.
OBJECTIVES
To provide quality packaging products.

To provide quality services in the packing materials and moving business.
To ensure safety and timely delivery of our goods.
To provide excellent services at affordable price and in meeting the time constraints of the
clients.
USP of the company
Incentives from the government in the form of land, Export rebate and duties and taxes.
Quality of scrap
Availability of segregated scrap resulting in reduced cost of production.
How will it work???
1) Collection of waste plastic It is the process of collecting the plastic waste that has already
been used before. We buy pickup or pay freight for multi truck load, full truck load and half
truckload quantities in the eastern states where there is less demand and we provide
regularly scheduled volume pickups free of charge in the southern parts of India.
2) Recycled the Plastic After collecting the waste we recycled the waste plastics and /or
plastic materials into useful products like toys, bottles etc. There exists different processes
and techniques used for the processing the plastic. There exist huge machines and
equipments that are used in the plastic processing technology.
3) Producing Recycled granules Granules are the raw material to manufacture the plastics.
There are different forms of granules and in 24 colours that are available with us. We can
also provide special colour or different coloured granules to produce special effects. All
colours are whether proof and resistant to ageing and UV rays.
4) Marketing in India we can market our plastic granules in the southern states like
Hyderabad, madras, Bangalore, Goa, Kodai kanal, etc. New Delhi there is lesser demand as
compared to southern states.
There is highly demand of plastics in India. As compared to plastic manufacturing firm Plastic
recycling firm can employ approx. 7 times more people. Also Indians require more employment
opportunities.
The growth rate of Indian Plastic industry is 16% per annum. The PlastIndia Foundation estimate that
plastics consumption is likely to reach 16 kg per head by 2015.Since 2012 Government of India
allowed FDI in retail sector. The demand for recycled plastics is huge (an estimation 47%) especially
for commodity plastics such as PP, PET, PS, LPDE and HDPE.
5) Enjoying profits
Total Start up cost of the project in year 0 is Rs 15, 00,000 /- which would be shared by two partners
equally. (Exhibit 11)
Profit of the company arises after the second year of Rs 7, 52,514/- (150000*5.02) (Exhibit 13)
For cash flow and other financial key points refer Exhibits
Potential Target Customers
SWOT Analysis
Strengths
High potential market of plastic waste recycling in India
Low Competition due to
Equipment cost are high and industry specific and resulting in high exit cost.
Limited supply of raw materials
High Availability of plastics scraps in India

High Availability of clients in India
Weaknesses
High ship transportation cost
Delay in generating customer
Opportunities
High demand of plastic granules in India
Government Funding in terms of subsidies and reduction in legal formalities
Threats
Shortage of skilled labour
Time between order and delivery period is variable.
Exhibits:
Exhibit 1:
Green Industries
Revenue Projections
Years 1 to 5
(Rs)
Year 1
Year 2
Year 3
Year 4
Year 5
20,000
75,000
1,50,000
2,50,000
4,00,000
50
50
45
45
40
10,00,000
37,50,000
67,50,000
1,12,50,000
1,60,00,000
50,000
1,00,000
2,00,000
5,00,000
30
30
25
20
15,00,000
30,00,000
50,00,000
1,00,00,000
10,00,000
52,50,000
97,50,000
1,62,50,000
2,60,00,000
Product A
Number of Units
Price per unit
Total
Service B
Number of Customers
Fee per Customer
Total
Net Revenue
Exhibit 2:
Green Industries
Cost of Revenues
Years 1 to 5
(Rs)
Year 1
Year 2
Year 3
Year 4
Year 5
10,00,000
52,50,000
97,50,000
1,62,50,000
2,60,00,000
Material Costs per Unit
15.00
14.00
11.00
10.00
9.00
Subcontract Costs per Unit
10.00
10.00
7.00
6.50
6.00
25.00
24.00
18.00
16.50
15.00
20,000
75,000
1,50,000
2,50,000
4,00,000
5,00,000
18,00,000
27,00,000
41,25,000
60,00,000
69,000
2,27,700
5,52,000
8,64,000
12,00,000
5,69,000
20,27,700
32,52,000
49,89,000
72,00,000
1,20,750
2,12,750
4,80,000
15,00,000
27,50,000
2,76,000
6,90,000
9,90,000
14,10,000
20,00,000
Depreciation
36,714
91,714
1,37,429
1,90,286
2,43,143
Facility costs (rent, energy)
50,000
2,00,000
3,00,000
3,00,000
4,50,000
System Costs
25,000
1,00,000
1,50,000
3,00,000
3,50,000
40,000
2,10,000
3,90,000
6,50,000
10,40,000
11,17,464
35,32,164
56,99,429
93,39,286
1,40,33,143
111.7%
67.3%
58.5%
57.5%
54.0%
Variable
7,29,750
24,50,450
41,22,000
71,39,000
1,09,90,000
Fixed
3,87,714
10,81,714
15,77,429
22,00,286
30,43,143
11,17,464
35,32,164
56,99,429
93,39,286
1,40,33,143
Revenue
Cost of Revenue
Product A
Total Direct Costs per Unit

Unit Sales
Total Direct Costs
Labor Costs
Total Direct Costs
Service B
Service Personnel Costs
Other Expenses
Salary Expenses
All other costs % of Revenue

Total Cost of Revenues
% of Revenue
4%
Allocation of Cost of Revenue between:
Total
Exhibit 3:
Green Industries
Operating Expenses
Years 1 to 5
(Rs)
Year 1
Year 2
Year 3
Year 4
Year 5
10,00,000
52,50,000
97,50,000
1,62,50,000
2,60,00,000
69,000
2,70,250
4,32,900
6,24,000
8,16,000
50,000
2,62,500
4,87,500
8,12,500
13,00,000
50,000
1,50,000
3,00,000
5,00,000
10,00,000
60,000
3,15,000
5,85,000
9,75,000
15,60,000
2,29,000
9,97,750
18,05,400
29,11,500
46,76,000
22.9%
19.0%
18.5%
17.9%
18.0%
Salaries and Benefits
69,000
1,95,500
3,10,050
5,04,000
6,72,000
Testing
50,000
60,000
1,00,000
2,50,000
3,00,000
30,000
1,57,500
2,92,500
4,87,500
7,80,000
1,49,000
4,13,000
7,02,550
12,41,500
17,52,000
14.9%
7.9%
7.2%
7.6%
6.7%
1,25,000
3,00,150
3,88,440
5,73,600
7,84,800
6,667
40,000
1,06,667
1,83,333
2,66,667
20,000
20,000
1,00,000
1,10,000
2,00,000
20,000
1,05,000
1,95,000
3,25,000
5,20,000
1,71,667
4,65,150
7,90,107
11,91,933
17,71,467
17.2%
8.9%
8.1%
7.3%
6.8%
5,49,667
18,75,900
32,98,057
53,44,933
81,99,467
55.0%
35.7%
33.8%
32.9%
31.5%
Net Revenues
Sales & Marketing

Drivers
Commissions % of Revenue
5%
Direct Mail Campaign
All other expenses % of Revenue
6%
Total Sales and Marketing

% of Revenue
Research & Development

Drivers
3%
Total Reaserch & Development

% of Revenue
General & Administration

Drivers
Depreciation
Rent and Utilities
Total General & Administration

% of Revenue
Total Operating Expenses

% of Revenue
Allocation of Operating Expenses between:
2%
Vaiable
1,60,000
8,40,000
15,60,000
26,00,000
41,60,000
Fixed
3,89,667
10,35,900
17,38,057
27,44,933
40,39,467
5,49,667
18,75,900
32,98,057
53,44,933
81,99,467
Total
Exhibit 4:
Green Industries
Personnel
Years 1 to 5
(Rs)
Year 1
Year 2
Year 3
Year 4
Year 5
10,00,000
52,50,000
97,50,000
1,62,50,000
2,60,00,000
60,000
80,000
1,00,000
1,25,000
1,50,000
Marketing Manager
80,000
1,00,000
1,25,000
1,50,000
Customer service
40,000
1,20,000
2,00,000
2,50,000
Tech support
35,000
50,000
70,000
1,30,000
60,000
2,35,000
3,70,000
5,20,000
6,80,000
15%
15%
17%
20%
20%
9,000
35,250
62,900
1,04,000
1,36,000
69,000
2,70,250
4,32,900
6,24,000
8,16,000
6.9%
5.1%
4.4%
3.8%
3.1%
80,000
1,00,000
1,25,000
1,50,000
60,000
1,30,000
2,30,000
3,00,000
30,000
35,000
65,000
1,10,000
60,000
1,70,000
2,65,000
4,20,000
5,60,000
15%
15%
17%
20%
20%
Total benefit costs
9,000
25,500
45,050
84,000
1,12,000
Total R & D Compensation
69,000
1,95,500
3,10,050
5,04,000
6,72,000
6.9%
3.7%
3.2%
3.1%
2.6%
60,000
80,000
1,00,000
1,25,000
1,50,000
50,000
60,000
75,000
1,00,000
Net Revenues
Sales & Marketing

Sales Manager
Total Salary
Benefits
Percent (%)
Total benefit costs
Total S & M Compensation
% of Revenue
Research and Development

R & D Manager
Engineers
60,000
Technicians
Subcontract
Total Salary
Benefits
Percent (%)
% of Revenue
General & Administration

Chief Executive Officer
Chief Financial Officer
Accounting
40,000
45,000
25,000
50,000
75,000
Secretarial
25,000
26,000
27,000
28,000
29,000
60,000
1,20,000
2,00,000
3,00,000
1,25,000
2,61,000
3,32,000
4,78,000
6,54,000
15%
15%
17%
20%
20%
39,150
56,440
95,600
1,30,800
1,25,000
3,00,150
3,88,440
5,73,600
7,84,800
12.5%
5.7%
4.0%
3.5%
3.0%
1,00,000
1,25,000
1,50,000
1,75,000
2,00,000
Quality Assurance
50,000
1,00,000
1,50,000
3,00,000
3,50,000
Materials and Logistics
40,000
1,50,000
2,00,000
3,00,000
4,50,000
75,000
1,25,000
1,50,000
3,00,000
50,000
1,50,000
2,00,000
2,50,000
3,00,000
2,40,000
6,00,000
8,25,000
11,75,000
16,00,000
15%
15%
20%
20%
25%
36,000
90,000
1,65,000
2,35,000
4,00,000
2,76,000
6,90,000
9,90,000
14,10,000
20,00,000
20
30
40
20,000
22,000
23,000
24,000
24,000
60,000
1,98,000
4,60,000
7,20,000
9,60,000
15%
15%
20%
20%
25%
9,000
29,700
92,000
1,44,000
2,40,000
69,000
2,27,700
5,52,000
8,64,000
12,00,000
10
25
40
35,000
37,000
40,000
50,000
55,000
1,05,000
1,85,000
4,00,000
12,50,000
22,00,000
15%
15%
20%
20%
25%
15,750
27,750
80,000
2,50,000
5,50,000
Total Salary Costs
1,20,750
2,12,750
4,80,000
15,00,000
27,50,000
Total COR's Compensation
4,65,750
11,30,450
20,22,000
37,74,000
59,50,000
46.6%
21.5%
20.7%
23.2%
22.9%
Clerks and admin personnel
Total Salary
Benefits
Percent (%)
Total benefit costs
Total G & A Compensation
% of Revenue
Cost of Revenue
Manufacturing Personnel
Operations Manager
Engineering
Other personnel
Total Salary
Benefits
Percent (%)
Total benefit costs
Total Salary Costs
Hourly Personnel
Number of employees
Average wages per employee
Total wages
Benefits
Percent (%)
Total benefit costs
Total Wage Costs
Service Personnel
Number of employees
Salary per employee
Total salaries
Benefits
Percent (%)
Total benefit costs
% of Revenue
Total Salary & Wages

Total Benefits
Total Compensation
% of Revenue
5,45,000
14,64,000
22,52,000
33,13,000
44,54,000
63,000
2,19,600
4,21,390
6,62,600
10,18,800
7,28,750
18,96,350
31,53,390
54,75,600
82,22,800
72.9%
36.1%
32.3%
33.7%
31.6%
Exhibit 5:
Green Industries
Extraordinary Income & Expense
Years 1 to 5
(Rs)
Year 1
Year 2
Year 3
Year 4
Year 5
Income
(Item)
Total
Start-up expenses
Legal
25,000
Relocation
20,000
Total
45,000
-45,000
Total Extraordinary Income/(Expense)
Exhibit 6:
Green Industries
Taxes
Years 1 to 5
(Rs)
Net Revenues
Income Tax (Rate Federal & State)
Net Earnings Before Taxes

Cumulative
Taxes
Percent of Revenues
Year 1
Year 2
Year 3
Year 4
Year 5
10,00,000
52,50,000
97,50,000
1,62,50,000
2,60,00,000
0.40
0.40
0.40
0.40
0.40
-7,12,131
-2,18,064
7,04,515
15,20,781
37,53,390
-7,12,131
-9,30,195
-2,25,681
12,95,100
50,48,491
-5,18,040
-15,01,356
0.0%
0.0%
0.0%
-3.2%
-5.8%
Exhibit 7:
Green Industries
Property and Equipment
Years 1 to 5
(Rs)
Year
0
Year
1
Year
2
Year
3
Year
4
Year
5
Purch
ased
Asset
s
10,00
,000
52,50
,000
97,50
,000
1,62,5
0,000
2,60,0
0,000
20,00
0
2,50,
000
10,00
0
2,80,
000
28.0
%
1,00,
000
3,50,
000
50,00
0
5,00,
000
2,00,
000
2,50,
000
1,00,
000
5,50,
000
2,50,0
00
3,00,0
00
1,00,0
00
6,50,0
00
3,50,0
00
3,00,0
00
1,00,0
00
7,50,0
00
9.5%
5.6%
4.0%
2.9%
Year 0
Year 1
6,667
6,667
33,33
3
6,667
33,33
3
66,66
7
33,333
66,667
66,667
83,333
Net Revenues
Capital Expenditures
Computers, Software & Office Equipment
Plant & Equipment
Other
Total Capital Expenditures
% of Revenue
Depreciation Computers, Sofware & Office Equipment
(allocated to General & Administrative Expenses)
Depreciation Rate: Years
Year 2
Year 3
Year 4
6,667
40,00
0
1,06,
667
1,83,3
33
83,333
1,16,6
67
2,66,6
67
0
35,71
4
0
35,71
4
50,00
0
0
35,71
4
50,00
0
35,71
4
35,714
35,714
50,000
50,000
35,714
35,714
42,857
42,857
Year 5
Total Depreciation
Depreciation on Plant and Equipment (allocated to Cost of
Revenue)
Year 0
Year 1
Year 2
Year 3
Year 4
Year 5
Total Depreciation
35,71
4
85,71
4
1,21,
429
1,64,2
86
42,857
2,07,1
43
10
10
10
10
10
Depreciation Other (allocated to Cost of Revenue)

Year 0
Year 1
1,000
Year 2
1,000
1,000
1,000
1,000
5,000
5,000
10,00
0
5,000
5,000
10,000
10,000
10,000
10,000
Year 3
Year 4
Year 5
10,000
1,000
6,000
16,00
0
Total Depreciation
43,38
1
1,31,
714
2,44,
095
3,73,6
19
5,09,8
10
% of Revenue
4.3%
2.5%
2.5%
2.3%
2.0%
2,80,
000
43,38
1
2,36,
619
23.7
%
7,80,
000
1,75,
095
6,04,
905
11.5
%
13,30
,000
4,19,
190
9,10,
810
19,80,
000
7,92,8
10
11,87,
190
27,30,
000
13,02,
619
14,27,
381
9.3%
7.3%
5.5%
Total Depreciation
26,000
36,000
Property & Equipment

Gross Asset Value
Accumulated Depreciation
Net Property and Equipment
% of Revenue
Exhibit 8:
Green Industries
Working Capital
Years 1 to 5
(Rs)
Year 1
Year 2
Year 3
Year 4
Year 5
10,00,000
52,50,000
97,50,000
1,62,50,000
2,60,00,000
8.3%
8.3%
8.3%
8.3%
8.3%
30
30
30
30
30
1,49,400
6,27,480
9,13,000
15,77,000
26,56,000
-1,49,400
-4,78,080
-2,85,520
-6,64,000
-10,79,000
8.3%
8.3%
6.7%
6.7%
6.7%
Inventory Turns
12
12
15
15
15
Inventory Days
30
30
24
24
24
1,49,400
6,27,480
7,37,000
12,73,000
21,44,000
-1,49,400
-4,78,080
-1,09,520
-5,36,000
-8,71,000
1.0%
1.0%
1.0%
1.0%
1.0%
18,000
75,600
1,10,000
1,90,000
3,20,000
-18,000
-57,600
-34,400
-80,000
-1,30,000
8.7%
8.7%
8.7%
8.7%
8.7%
31
31
31
31
31
AP & Accrued Value
1,55,720
6,57,720
9,57,000
16,53,000
27,84,000
Increase/(Decrease) from Prev. Period
1,55,720
5,02,000
2,99,280
6,96,000
11,31,000
1.0%
1.0%
1.0%
1.0%
1.0%
Other Current Liabilities
18,000
75,600
1,10,000
1,90,000
3,20,000
Increase/(Decrease) from Prev. Period
18,000
57,600
34,400
80,000
1,30,000
Net Revenues
Accounts Receivable
% of Revenue
Days Outstanding
Accounts Receivable
(Increase)/Decrease from Prev. Period
Inventory
% of Revenue
Inventory
Other Current Assets

% of Revenue
Days
Other CA Value
Accounts Payable & Accrued Expenses

% of Revenue
Days
Other Current Liabilites

% of Revenue
Days
Exhibit 9:
Green Industries
Funding Projections
Years 1 to 5
(Rs)
Begin
Beginning Cash
Year 1
Year 2
Year 3
Year 4
Year 5
5,00,000
5,00,000
5,00,000
5,00,000
5,00,000
10,00,000
10,00,000
10,00,000
10,00,000
10,00,000
5,00,000
5,00,000
5,00,000
5,00,000
10,00,000
15,00,000
15,00,000
15,00,000
15,00,000
5,00,000
15,00,000
20,00,000
20,00,000
20,00,000
20,00,000
15,00,000
Equity
Common
Increase / (Decrease) Previous
Period
5,00,000
Preferred
A Round
10,00,000
B Round
Total Preferred
Period
Total Equity
10,00,000
15,00,000
Debt
Short Term Debt
Period
1,00,000
0
1,00,000
-1,00,000
Current Portion
1,00,000
1,00,000
1,00,000
1,00,000
Long Term Portion
4,00,000
3,00,000
2,00,000
1,00,000
5,00,000
4,00,000
3,00,000
2,00,000
Current Portion
1,00,000
Long Term Protion
4,00,000
-1,00,000
-1,00,000
-1,00,000
5,00,000
-1,00,000
-1,00,000
-1,00,000
15,00,000
25,00,000
24,00,000
24,00,000
22,00,000
Short Term Debt
9.0%
9.0%
9.0%
9.0%
9.0%
Long Term Debt
12.0%
12.0%
12.0%
12.0%
12.0%
Short Term Debt
9,000
Long Term Debt
60,000
48,000
36,000
24,000
Total Interest
60,000
48,000
45,000
24,000
Long Term Debt
Total Long Term Debt

Period
Total Long Term Debt
Total Equity & Debt
15,00,000
Interest
Interest Rate
Interest Expense
Interest Income
Interest Rate
Interest Income
4.0%
4.0%
4.0%
4.0%
4.0%
10,000
-7,12,131
-2,18,064
7,04,515
10,02,741
22,52,034
Retained Earnings
Net Income
Dividends
Increase / (Decrease) Retained
Earnings
Beginning Retained Earnings
Ending Retained Earnings
50,000
-7,12,131
-2,18,064
7,04,515
10,02,741
22,02,034
-7,12,131
-9,30,195
-2,25,681
7,77,060
-7,12,131
-9,30,195
-2,25,681
7,77,060
29,79,094
Exhibit 10:
Green Industries
Income Statement
Years 1 to 5
(Rs)
Year 1
Year 2
Year 3
Year 4
Year 5
NET REVENUES
10,00,000
52,50,000
97,50,000
1,62,50,000
2,60,00,000
COST OF REVENUE
11,17,464
35,32,164
56,99,429
93,39,286
1,40,33,143
% of Revenues
111.7%
67.3%
58.5%
57.5%
54.0%
-1,17,464
17,17,836
40,50,571
69,10,714
1,19,66,857
-11.7%
32.7%
41.5%
42.5%
46.0%
Sales & Marketing
2,29,000
9,97,750
18,05,400
29,11,500
46,76,000
Research & Development
1,49,000
4,13,000
7,02,550
12,41,500
17,52,000
General and Administration
1,71,667
4,65,150
7,90,107
11,91,933
17,71,467
Total Operating Expenses
5,49,667
18,75,900
32,98,057
53,44,933
81,99,467
55%
36%
34%
33%
32%
-6,67,131
-1,58,064
7,52,515
15,65,781
37,67,390
-45,000
-7,12,131
-1,58,064
7,52,515
15,65,781
37,67,390
INTEREST INCOME / (EXPENSE)
-60,000
-48,000
-45,000
-14,000
NET EARNINGS BEFORE TAXES
-7,12,131
-2,18,064
7,04,515
15,20,781
37,53,390
-5,18,040
-15,01,356
-7,12,131
-2,18,064
7,04,515
10,02,741
22,52,034
-71.2%
-4.2%
7.2%
6.2%
8.7%
GROSS PROFIT
% of Revenues
OPERATING EXPENSES
% of Revenues
EARNINGS FROM OPERATIONS
EXTRAORDINARY INCOME / (EXPENSE)
EARNINGS BEFORE INTEREST & TAXES
TAXES
NET EARNINGS
% of Revenues
Exhibit 11:
Green Industries
Balance Sheet
Years 1 to 5
Rs
Begin
Year 1
Year 2
Year 3
Year 4
Year 5
15,00,000
4,08,170
3,67,660
5,70,510
7,92,870
17,35,714
Accounts Receivable
1,49,400
6,27,480
9,13,000
15,77,000
26,56,000
Inventories
1,49,400
6,27,480
7,37,000
12,73,000
21,44,000
ASSETS
CURRENT ASSETS
Cash
Other Current Assets
18,000
75,600
1,10,000
1,90,000
3,20,000
15,00,000
7,24,970
16,98,220
23,30,510
38,32,870
68,55,714
2,36,619
6,04,905
9,10,810
11,87,190
14,27,381
15,00,000
9,61,589
23,03,125
32,41,319
50,20,060
82,83,094
1,00,000
1,55,720
6,57,720
9,57,000
16,53,000
27,84,000
18,000
75,600
1,10,000
1,90,000
3,20,000
1,00,000
1,00,000
1,00,000
1,00,000
1,73,720
8,33,320
11,67,000
20,43,000
32,04,000
4,00,000
3,00,000
2,00,000
1,00,000
CommonStock
5,00,000
5,00,000
5,00,000
5,00,000
5,00,000
5,00,000
Preferred Stock
10,00,000
10,00,000
15,00,000
15,00,000
15,00,000
15,00,000
-7,12,131
-9,30,195
-2,25,681
7,77,060
29,79,094
Total Current Assets

PROPERTY & EQUIPMENT
TOTAL ASSETS
LIABILITIES & SHAREHOLDERS' EQUITY

CURRENT LIABILITIES
Short Term Debt
Accounts Payable & Accrued Expen
Other Current Liab
Current portion of long term debt
Total Current Liabilities
LONG TERM DEBT (less current portion)
STOCKHOLDERS' EQUITY
Retained Earnings
Total Equity
15,00,000
7,87,869
10,69,805
17,74,319
27,77,060
49,79,094
TOTAL LIABILITIES & EQUITY
15,00,000
9,61,589
23,03,125
32,41,319
50,20,060
82,83,094
Exhibit 12:
Green Industries
Cash Flow Statememt
Years 1 to 5
(Rs)
Year 1
Year 2
Year 3
Year 4
Year 5
Net Earnings
-7,12,131
-2,18,064
7,04,515
10,02,74
1
22,52,034
Depreciation
43,381
1,31,714
2,44,095
3,73,619
5,09,810
(Increase)/Decrease Accounts Receivable
-1,49,400
-4,78,080
-6,64,000
10,79,000
(Increase)/Decrease Inventories
-1,49,400
-4,78,080
2,85,520
1,09,520
-5,36,000
-8,71,000
-18,000
-57,600
-34,400
-80,000
-1,30,000
1,55,720
5,02,000
2,99,280
6,96,000
11,31,000
18,000
57,600
34,400
80,000
1,30,000
-8,11,830
-5,40,510
8,52,850
8,72,360
19,42,844
-2,80,000
-5,00,000
5,50,000
-6,50,000
-7,50,000
-2,80,000
-5,00,000
5,50,000
-6,50,000
-7,50,000
Increase/(Decrease) Short Term Debt
1,00,000
-1,00,000
Increase/(Decrease) Curr. Portion LTD
1,00,000
Increase/(Decrease) Long Term Debt
4,00,000
0
1,00,000
-1,00,000
-1,00,000
Increase/(Decrease) Common Stock
Increase/(Decrease) Preferred Stock
5,00,000
Dividends Declared
0
1,00,000
-50,000
0
10,00,00
0
-2,50,000
10,91,830
-40,510
2,02,850
2,22,360
9,42,844
15,00,000
4,08,170
3,67,660
5,70,510
7,92,870
4,08,170
3,67,660
5,70,510
7,92,870
17,35,714
OPERATING ACTIVITIES
Working Capital Changes
(Increase)/Decrease Other Current Assets

Increase/(Decrease) Accts Pay & Accrd
Expenses
Increase/(Decrease) Other Current Liab
Net Cash Provided/(Used) by Operating
Activities
INVESTING ACTIVITIES
Property & Equipment
Other
Net Cash Used in Investing Activities
FINANCING ACTIVITIES
Net Cash Provided / (Used) by Financing
INCREASE/(DECREASE) IN CASH
CASH AT BEGINNING OF YEAR

CASH AT END OF YEAR
15,00,00
0
Exhibit 13:
Green Industries
Break-Even Analysis
Years 1 to 5
(Rs)
Year 1
Year 2
Year 3
Year 4
Year 5
10,00,000
52,50,000
97,50,000
1,62,50,000
2,60,00,000
Variable
7,29,750
24,50,450
41,22,000
71,39,000
1,09,90,000
Fixed
3,87,714
10,81,714
15,77,429
22,00,286
30,43,143
Total
11,17,464
35,32,164
56,99,429
93,39,286
1,40,33,143
Variable
1,60,000
8,40,000
15,60,000
26,00,000
41,60,000
Fixed
3,89,667
10,35,900
17,38,057
27,44,933
40,39,467
Total
5,49,667
18,75,900
32,98,057
53,44,933
81,99,467
Variable
8,89,750
32,90,450
56,82,000
97,39,000
1,51,50,000
Fixed
7,77,381
21,17,614
33,15,485
49,45,219
70,82,610
Total
16,67,131
54,08,064
89,97,485
1,46,84,219
2,22,32,610
0.89
0.63
0.58
0.60
0.58
70,51,076
56,73,484
79,46,406
1,23,42,161
1,69,72,152
20,000
75,000
1,50,000
2,50,000
4,00,000
10,00,000
52,50,000
97,50,000
1,62,50,000
2,60,00,000
50
70
65
65
65
16,67,131
54,08,064
89,97,485
1,46,84,219
2,22,32,610
cost per unit
83.35655512
72.10752381
59.98323492
58.73687619
55.58152381
profit per unit
-33.35655512
-2.10752381
5.016765079
6.26312381
9.41847619
Revenue
Cost of Revenue
Operating Expenses
Total Costs & Expenses
Variable Costs/Revenue Ratio
Break-Even Point Revenues
no of units
revenue
selling price per unit
cost
Exhibit 14:
Green Industries
Summary
Years 1 to 5
Year 1
Year 2
Year 3
Year 4
Year 5
Revenue
10,00,000
52,50,000
97,50,000
1,62,50,000
2,60,00,000
Gross Profit
-1,17,464
17,17,836
40,50,571
69,10,714
1,19,66,857
EBIT
-7,12,131
-1,58,064
7,52,515
15,65,781
37,67,390
EBITDA
-6,68,750
-26,350
9,96,610
19,39,400
42,77,200
Net Earnings
-7,12,131
-2,18,064
7,04,515
10,02,741
22,52,034
Net Cash from Operating Activities
-8,11,830
-5,40,510
8,52,850
8,72,360
19,42,844
2,80,000
5,00,000
5,50,000
6,50,000
7,50,000
Interest Income/(Expense)
-60,000
-48,000
-45,000
-14,000
Dividends
50,000
4,08,170
3,67,660
5,70,510
7,92,870
17,35,714
-2,12,131
-4,30,195
2,74,319
12,77,060
34,79,094
5,00,000
4,00,000
3,00,000
2,00,000
425%
86%
67%
60%
Nil
Nil
42.3%
124.6%
Summary Financials (Rs)
Capital Expenditures
Cash
Total Equity
Total Debt
Growth
Revenue Growth Rate - CAGR:
Net Earnings Growth Rate - CAGR:
Ratios
Current Ratio
4.2
2.0
2.0
1.9
2.1
Debt to Capital (LT Debt + Equity)
0.0
0.3
0.2
0.1
0.0
-11.7%
32.7%
41.5%
42.5%
46.0%
55.0%
35.7%
33.8%
32.9%
31.5%
-71.2%
-4.2%
7.2%
6.2%
8.7%
Return on Assets
-74.1%
-9.5%
21.7%
20.0%
27.2%
Return on Equity
-90.4%
-20.4%
39.7%
36.1%
45.2%
Return on Capital (LT Debt + Equity)
-90.4%
-13.9%
32.4%
32.6%
43.5%
Profitability
Gross Profit %
Operating Expenses %
Net Earnings %
Returns
Exhibit 15:
Green Industries
Valuation
Venture Capital Method
Years 1 to 5
Assumpti
ons:
Investor
required
IRR
P/E
ratio at
IPO or
acquisition
Initial
investmen
t
REF
REF
60%
15
Rs.
15,0
0,00
0
FV(A,
C)
Marke
t
Capit
alizati
on
Inv
est
or'
s
Sh
are
Inves
tor's
Retur
n
Inv
est
or'
s
RO
I
C/
G
F*H
I/
C
Inv
est
or'
s
IR
R
IR
R(I,
C,
D)
B*E
FV(F,
D)
Rs.
24,00,
000
100
.0
%
Rs.
-
Rs.
38,40,
000
100
.0
%
Rs.
-
58.
1%
Rs.
61,44
,000
Calculatio
n
Liquidity
Event in
Year 1
7,12
,131
2,18
,064
Rs. 1,06,8
1,967
Rs.
32,70,
964
7,04
,515
Rs.
1,05,6
7,721
Rs.
61,44,
000
10,0
2,74
1
Rs.
1,50,4
1,112
Rs.
98,30,
400
22,5
2,03
4
Rs.
3,37,8
0,514
Rs.
1,57,2
8,640
Liquidity
Event in
Year 2
Liquidity
Event in
Year 3
Liquidity
Event in
Year 4
Liquidity
Event in
Year 5
Year
G/F
G
Requi
red
Futur
e
Value
(Inves
tor)
Net
Inc
om
e
Inco
me
Stm
t
Valuation
Calculati
on
IR
R(
D,
G)
65.
4%
46.
6%
Rs.
98,30
,400
Rs.
1,57,
28,64
0
IRR
Calculatio
n
Workspac
e
Start
Y
ea
r1
0%
#N/
A
Rs.
-15,00,000
R
s.
-
0%
#N/
A
Rs.
-15,00,000
R
s.
-
R
s.
-
Rs.
-15,00,000
R
s.
-
R
s.
-
Rs.
-15,00,000
R
s.
-
R
s.
-
Rs.
-15,00,000
R
s.
-
R
s.
-
410
%
655
%
104
9%
60
%
60
%
60
%
Y
ea
r2
Year
3
Year
4
Year
5
Rs.
61,4
4,00
0
Rs.
-
Rs.
-
Rs.
98,3
0,40
0
Rs.
-
Rs.
1,57,
28,64
0

Green Industries

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GREEN INDUSTRIES

To provide quality packaging products.

USP of the company

How will it work???

Potential Target Customers

High Availability of plastics scraps in India

Material Costs per Unit

Subcontract Costs per Unit

Facility costs (rent, energy)

Total Direct Costs per Unit

All other costs % of Revenue

Allocation of Cost of Revenue between:

Salaries and Benefits

Sales & Marketing

Direct Mail Campaign

All other expenses % of Revenue

Total Sales and Marketing

Research & Development

All other expenses % of Revenue

Total Reaserch & Development

General & Administration

All other expenses % of Revenue

Total General & Administration

Total Operating Expenses

Allocation of Operating Expenses between:

Total benefit costs

Total R & D Compensation

Sales & Marketing

Research and Development

General & Administration

Materials and Logistics

Total Salary Costs

Total COR's Compensation

Clerks and admin personnel

Total Salary & Wages

Total Extraordinary Income/(Expense)

Income Tax (Rate Federal & State)

Net Earnings Before Taxes

Depreciation Other (allocated to Cost of Revenue)

Property & Equipment

AP & Accrued Value

Increase/(Decrease) from Prev. Period

Other Current Liabilities

Increase/(Decrease) from Prev. Period

Other Current Assets

Accounts Payable & Accrued Expenses

Other Current Liabilites

Long Term Portion

Long Term Protion

Short Term Debt

Long Term Debt

Short Term Debt

Long Term Debt

Long Term Debt

Total Long Term Debt

Total Long Term Debt

Total Equity & Debt

Sales & Marketing

Research & Development

General and Administration

Total Operating Expenses

INTEREST INCOME / (EXPENSE)

NET EARNINGS BEFORE TAXES