Basic Assumptions:-

Parameters:- Units:- Values:-

Project Comissioning Period: 12 Months:
PROJECT COST ESTIMATES
Project Cost (excluding IDC & Working Captal) Rand Million 37.31
IDC Rand Million 1.77
Working Capital Rand Million 9.008
Working Capital Margin Rand Million 2.25
Total Project Cost Rand Million 41.33
Equity Amount (50%) Rand Million 18.65
Debt Amount (50%) Rand Million 18.65
Product sale:-
No of days of operation Days 250.00
No of shifts per day No 3.00
No of hours per shift hrs 8.00

No of machines No 4.00

Production per hour tons/hr 10.00

Plant utilization factor % 95%

Production per annum tons 57000

Sale price of Biocoal Rand/ton 800

Escalation in sale price % 5.94%

Outflow:
Electricity Charges:
Required Units Per Hour Per Machine KW 108.05

Annual Total electricity consumption Million KWh 2.46

Rate Per Unit Rand Per KWh 0.66

Annual electricity charges Rand Million 1.62

Esacalation per unit % 5.94%

Lubricants Consumption:
Lubricants per hour Litres/month 560
Cost of lubricants per litre Rand/litre 72
Annual lubricants charges Rand million 0.484
Escalation per unit % 5.94%
Packaging Costs:
Cost per bag Rand 57

Capacity of each bag ton 1

Total Packaging cost Rand Million 3.249

Escalation per unit % 5.94%

Finished Goods + raw material Transportation

costs:

Delivery Charge Rand Per Ton 253.08

Annual transportation cost Rand Million 14.43

Escalation per unit % 5.94%
Inventory costs:
Raw material costs Rand per ton 148.2
Annual raw material costs Rand Million 8.447
Escalation per ton of raw material % 5.94%
Salary & Expenses:
Administartive Expenses Rand Million 4.63
Management Salary Rand Million 2.94
Escalation in salary % 5.94%
Insurance % of fixed asset 1.00%
DEPRECIATION
Capital Cost -Building Rand Million 9.97
Capital Cost - Plant & Machineries Rand Million 27.33
Income Tax Rate % 28%

Working Capital Unit Values

Debtors Rand Million 9.008
Inventory costs Rand Million 0.010
Total Working Capital Rand Million 9.008
WC margin Rand Million 2.252
Working Capital Limit from Bank Rand Million 6.756
Interest rate Percent 11.50%
Interest on WC Rand Million 0.78

Revenue per MT of biocoal revenue Unit Values

Market sale price of biocoal Rand per ton 800.00
Packaging costs Rand per ton 57.00
Finished Good + raw material transportation costs Rand per ton 253.08
Raw Material costs Rand per ton 148.20
Total cost per ton of bio-coal Rand per ton 458.28
Revenue per MT of biocoal Rand per ton 341.72

CER Unit Values

CER tCO2 130000
CER price €/CER 5.00
Conversion rate(December-2011) Euro/ZAR 10.60
asic Assumptions:-
References:

Refer to "Project cost" worksheet

Refer to "Loan Schedule" worksheet
Calculated
Calculated
Calculated
Debt:Equity Ratio considered as 50:50

Project Report: BIO-COAL PRODUCTION PLANT dated 10th January 2012

submitted to bank for funding on 16/03/2012.

Quotation for supply & Erection of Briquette/Pellet Manufacturing Unit-Agro-

Technologies & Ventures Pvt. Ltd. Dated 24,September,2011
The production capacity is 2.5tons/yr for each machine as per the certificate from
Agro-Technologies & Ventures Pvt. Ltd doc dated 24/10/2011;
Certificate from Agro-Technologies & Ventures Pvt. Ltd doc dated 24/10/2011;
Calculated;
Bio-Coal Buyers Contract -Agreement for the Supply of Bio-fuels by Bio-Coal
Manufacturers & Distributors(Pty) Ltd(Suppliers)
Refer to "CPI-escalation" worksheet
http://www.statssa.gov.za/keyindicators/CPI/CPIHistory_rebased.pdf

Quotation for supply & Erection of Briquette/Pellet Manufacturing Unit-Agro-

Technologies & Ventures Pvt. Ltd.
Calculated;

ESCOM's 2011/12 tariff and charges for large power users excluding local
authorities; Page-1;http://www.eskom.co.za/content/44193-1%20Issue
%201%20LPU%20%20vasu.pdf
Calculated;
Refer to "CPI-escalation" worksheet
http://www.statssa.gov.za/keyindicators/CPI/CPIHistory_rebased.pdf

Lubricant Consumption from Manufacturer

Industrial Oil & Lubricant quotation send by Unicure dated 31/10/2011
Calculated;
Refer to "CPI-escalation" worksheet
http://www.statssa.gov.za/keyindicators/CPI/CPIHistory_rebased.pdf

As per quotation of Wildace Commodity Trades document dated 23/10/2011,

capacity of 1 ton bag cost R50/pc with quantity 15,000 per annum; which including
the VAT gives the cost of R57/pc
Calculated;
Refer to "CPI-escalation" worksheet
http://www.statssa.gov.za/keyindicators/CPI/CPIHistory_rebased.pdf

From conservative side, the delivery charges for East London is 253 Rand/ton;
other places have higher delivery charges as per Ner IP' CARRIERS quotation
dated 24/09/2011
Calculated;
Refer to "CPI-escalation" worksheet
http://www.statssa.gov.za/keyindicators/CPI/CPIHistory_rebased.pdf

Agreement for Supply of Raw Materials between Supplier & Bio-Coal

Manufacturers & Distributors (Pty) Ltd.
Calculated;
Refer to "CPI-escalation" worksheet
http://www.statssa.gov.za/keyindicators/CPI/CPIHistory_rebased.pdf

Refer to "Salary & Adminis Expenses" worksheet

Refer to "Salary & Adminis Expenses" worksheet
Refer to "CPI-escalation" worksheet
http://www.statssa.gov.za/keyindicators/CPI/CPIHistory_rebased.pdf
Insurance related document; www.oldmutual.co.za

Calculated;Refer to "Project Cost" worksheet

Calculated;Refer to "Project Cost" worksheet
Income Tax rate-As per Old Mutual rates in South Africa;
http://www.oldmutual.co.za/documents/budgetspeech/2011/BudgetPocketGuide.pd
f

0
1

http://www.idbi.com/pdf/IDBI%20Carbon%20Development%20-January%202012-final.pdf
http://coinmill.com/EUR_ZAR.html
Assumptions:
1 Interest Rate - 11.5%
2 Morotorium Period is 1 Year
3 No interest paid in the 1st year
4 Term Loan for 60 Months / 5 years

REPAYMENT SCHEDULE

Interest Rate 11.50%

Sl. No. Year Opening Balance Loan Received Loan Repaid/ Capital Closing Balance Interest Total Interest Paid Total Principal repaid
Subsidy for the year for the year

1 YEAR 0 0.00
QUARTER 1 0.00 13.06 13.06 0.19
QUARTER 2 13.24 5.60 18.84 0.46
QUARTER 3 19.30 19.30 0.55
QUARTER 4 19.86 19.86 0.57 1.77 0.00
0.00 0.00 0.00
2 YEAR 1 0.00 0.00
QUARTER 1 20.43 0.93 19.49 0.57
QUARTER 2 19.49 0.93 18.56 0.55
QUARTER 3 18.56 0.93 17.63 0.52
QUARTER 4 17.63 0.93 16.70 0.49 2.13 3.73
0.00 0.00
3 YEAR 2 0.00 0.00
QUARTER 1 16.70 0.93 15.76 0.47
QUARTER 2 15.76 0.93 14.83 0.44
QUARTER 3 14.83 0.93 13.90 0.41
QUARTER 4 13.90 0.93 12.97 0.39 1.71 3.73
0.00 0.00
4 YEAR 3 0.00 0.00
QUARTER 1 12.97 0.93 12.03 0.36
QUARTER 2 12.03 0.93 11.10 0.33
QUARTER 3 11.10 0.93 10.17 0.31
QUARTER 4 10.17 0.93 9.24 0.28 1.28 3.73
0.00 0.00
5 YEAR 4 0.00 0.00
QUARTER 1 9.24 0.93 8.30 0.25
QUARTER 2 8.30 0.93 7.37 0.23
QUARTER 3 7.37 0.93 6.44 0.20
QUARTER 4 6.44 0.93 5.51 0.17 0.85 3.73
0.00 0.00
6 YEAR 5 0.00 0.00
QUARTER 1 5.51 0.93 4.57 0.14
QUARTER 2 4.57 0.93 3.64 0.12
QUARTER 3 3.64 0.93 2.71 0.09
QUARTER 4 2.71 0.93 1.77 0.06 0.42 3.73
0.00
TOTAL 18.65 18.65 8.16 8.16 18.65
 Computation of Internal Rate of Return (IRR)
Sensitivity Operational Years
Parameter Unit
Computation Year-0 Year-1 Year-2 Year-3 Year-4 Year-5 Year-6 Year-7 Year-8 Year-9 Year-10
1 2 3 4 5 6 7 8 9 10

Total Project Cost Rand Million 41.33

Net Annual Production tons 57000 57000 57000 57000 57000 57000 57000 57000 57000 57000
Rate of bio-coal Rand/ton 800 800 800 800 800 848 898 951 1008 1068
Cash Inflow

Revenue through sale of bio-

Rand Million 45.60 45.60 45.60 45.60 45.60 48.31 51.18 54.22 57.44 60.85
coal

CER Revenue Rand Million 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Revenue Rand Million 45.60 45.60 45.60 45.60 45.60 48.31 51.18 54.22 57.44 60.85
Cash Outflow
Electricity charges Rand Million 1.62 1.72 1.82 1.93 2.04 2.16 2.29 2.43 2.57 2.73
Lubricants charges Rand Million 0.48 0.51 0.54 0.58 0.61 0.65 0.68 0.72 0.77 0.81
Packaging charges Rand Million 3.25 3.44 3.65 3.86 4.09 4.34 4.59 4.87 5.16 5.46
Transportation charges Rand Million 14.43 15.28 16.19 17.15 18.17 19.25 20.39 21.60 22.89 24.25
Inventory charges Rand Million 8.45 8.45 8.45 8.45 8.45 8.95 9.48 10.04 10.64 11.27
Salary & Expenses Rand Million 7.57 8.02 8.49 9.00 9.53 10.10 10.70 11.34 12.01 12.72
Insurance Charges Rand Million 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35
Interest on working capital Rand Million 0.78
Total Expenses Rand Million 36.93 37.77 39.49 41.32 43.25 45.80 48.50 51.36 54.39 57.60
Income Tax Computation
EBDIT Rand Million 8.67 7.83 6.11 4.28 2.35 2.51 2.68 2.86 3.05 3.25
Interest & Principal re-paid Rand Million 5.87 5.44 5.01 4.58 4.15
Less: Depreciation-
Rand Million 11.93 6.46 6.46 6.46 1.00 1.00 1.00 1.00 1.00 1.00
accelerated
PBT Rand Million -9.12 -4.07 -5.37 -6.76 -2.80 1.51 1.68 1.86 2.06 2.26
Carried forward loss Rand Million -9.12 -13.19 -18.56 -25.32 -28.11 -26.60 -24.91 -23.05 -20.99 -18.74
Taxable Income Rand Million 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Income Tax Rand Million 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
IRR Computation
PAT Rand Million -9.12 -4.07 -5.37 -6.76 -2.80 1.51 1.68 1.86 2.06 2.26
Add: Depreciation-
Rand Million 11.93 6.46 6.46 6.46 1.00 1.00 1.00 1.00 1.00 1.00
Accelerated
Net Cash Inflow Rand Million 2.81 2.39 1.10 -0.30 -1.80 2.51 2.68 2.86 3.05 3.25
Fair Value of the Project Rand Million - - - - - - - - - 3.73
Working capital margin Rand Million - - - - - - - - - 2.25
Total Project Cost : Equity Rand Million 22.68 - - - - - - - - - -
Net Inflow-Net Outflow Rand Million -22.68 #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

IRR % 1.11%

AWA Financials
COMPANY:
THE BUSINESS OF: BIO COAL MANUFACTURERS & DISTRIBUTORS (PTY) LTD
Personnel Plan: Salaried Staff

Plan Month QTY HDI-S TCC Month 1; Month 2; Month 3; Month 4;

Description
MANAGEMENT
Production Manager 1 30,000 30,000 30,000 30,000 30,000
Maintenance Manager 1 25,000 25,000 25,000 25,000 25,000
Accounts Manager 1 25,000 25,000 25,000 25,000 25,000
TOTAL 3 80,000 80,000 80,000 80,000 80,000

STAFF PREV YEAR

Production Staff:
Machine Operator 4 15,000 60,000 60,000 60,000 60,000
Wages - unskilled workers 20 2,000 40,000 40,000 40,000 40,000

Administration Staff:
Office Assistant 2 3,000 6,000 6,000 6,000 6,000
Admin Staff 2 4,000 8,000 8,000 8,000 8,000
- - - -
Other Costs - - - -
Medical Aid 1 14,583 14,583 14,583 14,583 14,583
- - - -
TOTAL 29 38,583 128,583 128,583 128,583 128,583

TOT PERSONNEL EXP 32 118,583 208,583 208,583 208,583 208,583

DIRECTORS

Executive Director - 1 50,000 50,000 50,000 50,000 50,000

[ Finance + Admin ]
Executive Director - [ Prod 1 50,000 50,000 50,000 50,000 50,000
+ Raw Material ]
Executive Director - [ Sales 1 50,000 50,000 50,000 50,000 50,000
+ New Business Dev ]
Executive Directors [ BEE ] 1 - - - - -
Non - Executive Directors 1 15,000 15,000 15,000 15,000 15,000
[ BCMD ]
Staff Bonus Provision
- - - -
TOTAL 5 165,000 165,000 165,000 165,000 165,000

TOTAL SALARIES 37 283,583 373,583 373,583 373,583 373,583

Month 5; Month 6; Month 7; Month 8; Month 9; Month 10; Month 11; Month 12;

30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000

25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000
25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000
80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000

60,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000

40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000

6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000

8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000
- - - - - - - -
- - - - - - - -
14,583 14,583 14,583 14,583 14,583 14,583 14,583 14,583
- - - - - - - -
128,583 128,583 128,583 128,583 128,583 128,583 128,583 128,583

208,583 208,583 208,583 208,583 208,583 208,583 208,583 208,583

50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000

50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000

50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000

- - - - - - - -
15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000

- - - - - - - -
165,000 165,000 165,000 165,000 165,000 165,000 165,000 165,000

373,583 373,583 373,583 373,583 373,583 373,583 373,583 373,583

Y1: 12 Months

360,000
300,000
300,000
960,000
-

720,000
480,000

72,000
96,000
-
-
175,000
-
1,543,000
-
2,503,000

600,000

600,000

600,000
-
180,000

-
-
1,980,000

4,483,000
 Serial No. Year All Items
1 2002 9.10%
2 2003 5.80%
3 2004 1.40%
4 2005 3.40%
5 2006 4.60%
6 2007 7.20%
7 2008 11.50%
8 2009 7.10%
9 2010 4.30%
10 2011 5.00%
Average: 5.94%

http://www.statssa.gov.za/keyindicators/CPI/CPIHistory_rebased.pdf
 Parameters Sensitivity % IRR
Project cost 0% 1.11%
Bio-Coal price 0% 1.11%
Electricity Tariff 0% 1.11%
Fuel Price 0% 1.11%
Transportation Cost 0% 1.11%
Inventory Cost 0% 1.11%

Project Cost Value(%)

-10.00% 4.01%
0.00% 1.11%
10.00% -1.24%

Bio-coal Price Value(%)

-10.00% Negative
0.00% 1.11%
10.00% 12.39%

Electricity Tariff Value(%)

-10.00% 2.35%
0.00% 1.11%
10.00% -0.16%

Fuel Price Value(%)

-10.00% 1.49%
0.00% 1.11%
10.00% 0.74%

Transportation cost Value(%)

-10.00% 11.23%
0.00% 1.11%
10.00% Negative

Inventory cost Value(%)

-10.00% 6.37%
0.00% 1.11%
10.00% -4.63%
 Pre-operative Expenses Breakup:
SL. No. Pariculars Amount excl VAT(Rand) VAT(Rand)

1 Motor Vehicle Expenses(Fuel;parking,License, 33598 3994

Repairs & Maintainence)

2 Salary Sacrifices(Rent;Living 949191 24486

expenses;Entertainment;Medical subscription)

3 Travel cost 198384 19553

4 Sundry Household cost(Furniture & Fittings, 227226 32250

Repairs & Maintainence)
5 Business Plan & Submission cost 75500 10780
6 Telephonic cost 21161 2963
7 Sundry cost(Advertisement, stationary) 30176 4244
8 Engineer Visitation 600 250
9 Legal, Financial & Clearances Fees 376366 2391
10 Cost of Importing Container Items 136315 18663
11 International Transport & Courier cost 11038 1005
TOTAL: 2059555 120579
TOTAL in Rand Millions: 2.06 0.12
Amount incl VAT(Rand)

37592

973677

217937

259476

86280
24124
34420
850
378757
154978
12043
2180134
2.180