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transcript
2015
PLASTIC MANUFACTURING BUSINESS PLAN
Mr. Andre Visser
Project Owner
19/5/2015
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Contents 1. Introduction ............................................................................................................................................ 3
2. General Business and Contact Details .............................................................................................. 3
3. Executive Summary .............................................................................................................................. 3
4. The Company ........................................................................................................................................ 4
4.1 Core Business ................................................................................................................................... 4
4.1.1 Operating Model ............................................................................................................................ 4
4.1.2 Input Materials ............................................................................................................................... 4
4.2 The Shareholders.............................................................................................................................. 5
4.3 Vision .................................................................................................................................................. 5
4.4 Mission ............................................................................................................................................... 5
5. SWOT Analysis ..................................................................................................................................... 6
5.1 Strengths ............................................................................................................................................ 6
5.2 Weaknesses ...................................................................................................................................... 6
5.3 Opportunities ..................................................................................................................................... 6
5.4 Threats ............................................................................................................................................... 6
5.5 Keys to Success ................................................................................................................................ 6
6. Profile Target Market ............................................................................................................................ 6
6.1 Positioning.......................................................................................................................................... 7
7. Marketing Plan ...................................................................................................................................... 7
7.1 Price .................................................................................................................................................... 7
7.2 Promotion ........................................................................................................................................... 8
7.3 Product and Production.................................................................................................................... 8
7.4 HDPE, LDPE and PP Recycling ..................................................................................................... 8
8. Company Structure ............................................................................................................................... 8
8.1 Board Positions ................................................................................................................................. 8
8.2 Management Positions ..................................................................................................................... 8
8.3 Operations Positions......................................................................................................................... 9
8.4 Administration Positions ................................................................................................................... 9
9. Operational Plan ................................................................................................................................... 9
9.1 Corporate Governance ..................................................................................................................... 9
9.2 Business Principles ......................................................................................................................... 10
9.3 Business Values & Behaviours ..................................................................................................... 10
9.4 Record Keeping............................................................................................................................... 10
10. Financial Projections ....................................................................................................................... 10
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10.1 Financial Model Assumptions ........................................................................................................ 10
10.2 Forecast Sales Assumptions ......................................................................................................... 10
10.3 Capital Expenditure and Start-Up Capital .................................................................................... 11
10.4 Costs ................................................................................................................................................. 11
10.5 Cost of Sales / Purchases.............................................................................................................. 12
10.6 Overhead Expenses (Year 1) ................................................................................................................... 12
10.7 Depreciation ..................................................................................................................................... 12
10.8 Tax Considerations ......................................................................................................................... 12
10.9 Projected Financials ....................................................................................................................... 12
10.10 Projected Income Statement ..................................................................................................... 12
10.11 Projected Balance Sheet............................................................................................................ 13
11. Implementation Plan ....................................................................................................................... 13
11.1 Project Management ...................................................................................................................... 13
12. Conclusion ....................................................................................................................................... 15
Annexure A: Plastic Product Range .................................................................................................... 16
Annexure B: Expressions of Intent from Prospective Clients - Ready, Willing and Able to Acquire
Product ........................................................................................................................................... 17
Annexure C: Proposed Company Organogram ................................................................................. 21
Annexure D: Financial Projections ....................................................................................................... 22
Annexure E: Quotation for Plant & Machinery ................................................................................... 41
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1. Introduction This Business Plan has been prepared to present the viability of establishing a plastic manufacturing and recycling business in support of a total funding requirement of R12,000,000. Towards this end the business seeks to enter into a joint venture with an investor willing to commit to the total funding requirement. Sales targets set for the first year of operations is R18 million growing to R33 million in year five. Net funds generated in year one is projected at R3,300,000 and growing to R8,000,000 in year five.
2. General Business and Contact Details General
TO BE FINALISED IN COLLABORATION
WITH THE INVESTOR
Business Name
Registration Number
Physical address
Postal address
Email address
Business telephone number
Business fax number
Company tax number
VAT number
UIF number
Shareholders
Member
Identity Number
Cell Phone
Member
Identity Number
Cell Phone
Member
Identity Number
Cell Phone
Bookkeeping Services
Name of Service Provider
Contact Person
Address
Telephone / Fax Number
Cell phone Number
Email:
Business Banker
Bank
Branch
Account Name
Type of Account
3. Executive Summary
The growing utilisation of plastics in industrial and consumer applications, combined with increased
consumer awareness surrounding solid waste recycling, has led to an increased demand for
recycled plastic resins and products both locally and globally.One of the fastest growing types of
collected plastic materials for recycling is Polyethylene Terephthalate ("PET").
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South Africa currently caters for eighteen percent (18%) of its recycled plastic requirement – 82% is imported. Based on the aforementioned a significant gap continues to exist in the market for local suppliers to contribute toward South Africa’s ever increasing recycled plastic requirements.
This view is confirmed through efforts by institutions such as the Plastics Federation SA as well as the Department of Trade and Industry to stimulate growth in the recycled plastic sector.
The establishment of a plastic recycling business is proposed in the West Rand area at an investment cost of R12,000,000 with the proposed business breaking even in month 22. The
proposed business will generate a first year net income in excess of R3,000,000 growing to a third year net income in excess of R7 million. The proposed business seeks an investor with strong BEE
credentials to secure a 49% interest in the business in return for the total funding requirement of
R12,000,000. The funding will be staggered in line with the setup costs outlined in the projected financial statements.
4. The Company
The company will be a start-up to be registered with CIPRO, SARS and the Plastic Federation of
SA, respectively. The start-up name will be determined through the joint venture engagement. The start-up may be an existing vehicle - provided CIPRO records are amended to include the shareholders to the proposed business and that there are no existing impeachments at SARS, any
other requisite authorities and that there are no existing financial obligations.
4.1 Core Business The recycling business will primarily encompass the conversion of plastic that has already been shredded, washed, dried and densified (input material). The pelletizing range that the Company will focus on is PP 5; HDPE 2 and LDPE 4 – with further detail defined in Annexure A.
The new business will be registered with the Plastic Federation of South Africa and will also secure
a license in terms of the National Environmental Management: Waste Act, Act 59 of 2008.
4.1.1 Operating Model The business operating model will entail the sourcing of input material (used plastic commodities),
the processing thereof into pellets (according to client needs) and the sale of the pellets to
consumers of plastic resins (such as the pellets produced).
The input material will initially be sourced from a supplier that specialises in the recovery of plastics
fit for recycling. The recycling business will then pelletize the input plastic through extruders,
package them and then supply them to the plastic industry as pellets for final conversion into
plastic products.
Once the core business as defined above is set up and operational, further expansion will be
considered and will also take into consideration the recovery of plastics in-house (collection,
shredding, washing, drying and densifying).
The business production processes will be based on continuous evaluation and refinement in order
to minimise the carbon footprint associated with manufacturing processes.
The output material, plastic pellets, will be sold to clients who have already expressed interest in acquiring our end product.
4.1.2 Input Materials The main source of input material will be Remade Plastics based in Randfontein.There has already been principle discussions with Remade Plastics with a view that Remade Plastics will be the primary source of input material. It is not practice in the plastics recycling sector for suppliers of
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raw input material to provide written commitment. We are however, confident though that Remade Plastics will agree to a supply contract once the proposed recycling business is ready to be
commissioned so as to have input material available once the plant becomes operational. Remade Plastics is a large-scale supplier of input materials in the plastic industry with an extensive footprint
throughout South Africa. This relationship will provide leverage for the blueprint of the current proposed plastic recycling business to be replicated elsewhere in Gauteng and South Africa. Other
suppliers are available and will also be pursued to ensure that a stable supply of raw input material is always available.
Once the business reaches a production capacity of 100MT per month the Company will engage directly with independent collectors of input materials. These collectors of raw material are
individuals who scout and collect materials from retail business and waste management sites. The material will be sorted, weighed and paid for at more affordable rates than that acquired from
businesses such as Remade Plastic. This method of sourcing input material will ultimately see the Company generating viable incomes for approximately 175 individuals with whom long term supply
relationship can be established. Assuming that these 175 individuals support 3 dependents this method of sourcing input materials will provide a livelihood for 525 people in total.
4.2 The Shareholders The Investor, will be the 50% shareholder and details will be formalised in a Memorandum of
Agreement leading into the establishment of a Pty Ltd.
The remaining 50% shareholding will be allocated to Mr. André Visser ( who has been actively
involved in the Plastic Manufacturing Industry since 1976), Mr. Christoffel Johannes Theron and Mr.
Ryno Milco Hertz.
It is envisaged that the collective experience of the shareholders will provide a solid basis to
establish and manage the plastic recycling business as well as to operate it profitably.
The shareholding split will be negotiable based on the investor’s intent to ensure shareholding allocations to community groups, women groups, employees and in instances a funding institution. It is preferred that funding be sourced from an investor who does not have any dependence on third party institutions in order to expedite the commencement of this business opportunity.
4.3 Vision
The Company vision is to become the preferred supplier of pelletized product within the recycling
industry. To this end the business will progressively grow the upstream and downstream value
chain in the plastic recycling business. The vision aligns to the environmentally friendly business
model and commitment to responsible business management which focusses on sustainability and
ensuring, wherever possible, the containment of carbon footprint within the industry served.
4.4 Mission
The Company is dedicated to converting waste plastic materials utilising environmentally friendly
recycling and manufacturing methods.
The Company intends to make sufficient profit annually in order to self-finance expansion and
development in line with marketplace demands. The Company will also maintain a friendly and creative work environment, which respects diversity, new ideas and hard work.
The Company mission can therefore be regarded as twofold, firstly, its responsibility towards
shareholders in ensuring stable and sustainable financial growth and secondly to provide a sought after top quality recycled product.
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5. SWOT Analysis
The SWOT analysis provides an opportunity to examine the internal strengths and weaknesses
that the Company will need to take note of and address where necessary. It also allows for an
examination of the opportunities presented to the Company as well as potential threats.
The strengths, weaknesses, opportunities and threats can be summarized as follows:
5.1 Strengths
a) Educated and knowledgeable owners. b) Hands-on management, avoiding unnecessary and costly management fees. c) Customer service focused.
d) Market has been researched and target market customers have been identified. e) Letters of Intent obtained from prospective clients (refer to Annexure B) for 550MT product.
f) Competitive pricing. g) Existing networks of suppliers.
h) Existing networks of clients requiring pelletised products.
5.2 Weaknesses
a) Investment costs associated with a start-up business. b) Cash constraints to expand business.
c) Similar product and services being supplied to market by competitors.
5.3 Opportunities
a) A growing population of businesses willing to pay for a much needed and quality product with related support services.
b) Market gap for local producers of pelletised product - South Africa currently caters for eighteen percent (18%) of its recycled plastic requirement – 82% is imported.
c) Training select groups of PDI and retaining the best as permanent staff.
5.4 Threats
a) The possibility of an aggravated economic slump – global recessionary trends. b) Shortage of raw material(s).
c) The possibility of a dramatic increase in interest rates.
d) New competition and potential reaction of existing competitors.
To address the aforementioned weaknesses and threats, the Company will carefully monitor
acquisition of input material, client orders in terms of supply of end product and cash flows through proper planning and budgets. It will also capitalise on existing networks in terms of supply and demand. Furniture, equipment and vehicles will be replaced through the utilisation of reserves
created specifically for that purpose. Shareholders will also ensure proper Governance over finance and operations.
5.5 Keys to Success
The main keys to the success of the Company are:
a) Secure Supply - Contract for supply of post-consumer bottles / plastic and post-industrial
manufacturing waste for raw material feed stock. b) Stable and productive client relationships.
c) Management - management with extensive, broad-based, industry specific experience.
6. Profile Target Market
The target market identified embraces companies that use recycled pelletised polypropylene PP,
polyethylene HDPE and LDPE (high and low density polyethylene), such as Heavy mineral
Plastics and Bravo Flex. Mr. Visser has had extensive exposure to the recycled plastics market and as a result possesses extensive networks of client companies who would all compete for
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product from the Company. This network will be leveraged to ensure a stable demand side for the Company’s product.
PP is used to produce products such as diapers, pails, dishes, candy containers, and lab equipment.
HDPE is used in the manufacturing of shampoo and detergent bottles, milk jugs, cosmetics, motor oil, toys, sturdy shopping bags and is considered one of the safer plastics. HDPE is often opaque or cloudy. Some recycling centres can only handle clear No. 2 plastics, such as milk jugs,
but not coloured bottles. LDPE is used in shopping bags, six-pack rings, hard drive casings, CD and DVD cases, and some bottles.
6.1 Positioning
The Company will follow a competitor positioning strategy. Here the product positions itself as
better than its competitors. This positioning strategy would be a logical strategy to follow as all products and services that the business has to offer are those that already exist in the market.
The value here lies in the positioning of the company based on its attributes.
The Company will endeavour to position itself as the preferred, sought after provider of pelletised
product, staffed by skilled, well trained and knowledgeable employees focused on serving the customers’ needs. The envisaged quality of product and service offering will be unique. The competition in related markets is somewhat fierce and at times cut-throat. However, the ability to
provide a quality product and service that satisfies the customers’ needs would play an important part in capturing market share.
Expansion will be carefully planned and carried out in phases to ensure viability and avoid tying up
of capital unnecessarily. A strong emphasis will be placed on continued training and education of personnel to ensure the best service at all times and to allow for succession planning, resulting in
vacancies being filled from within. An acceptable human resources policy will be put into place to ensure happy and motivated staff.
Branding and promotion of the business will undoubtedly be the major impetus in the short to
medium term. Image is a fundamental necessity for success. Promotion through advertising in selected media, publications and magazines, attending and participating in expositions, use of brochures and electronic media must become a regular, well managed function.
Pricing and customer service will be closely monitored and reviewed to stay ahead of likely competitors and other new inspired business entrants into the market.
7. Marketing Plan
The Company’s marketing plan will focus on the business offering a constantly available and top quality product combined with professional service.
7.1 Price
Since the Company operates in an existing market, it will follow a market penetration approach – a competitive price will be set for the product and service, relative to its competitors.
The cost of its product and related services is based on existing research within the plastics industry in general and the catchment area where the business is to be located.
Pricing and customer service will be closely monitored and reviewed to stay ahead of likely competitors and potential new entrants into the market.
Although the selling price of extruded pellets produced could be set at R8,470/ton (R8,47 per kilogram), the selling price used in the projections is conservatively placed at R6,968/ton.
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7.2 Promotion
The Company will be promoted through:
1) Existing networks through marketing meetings. 2) Advertisements in selected publications.
3) Visits to businesses. 4) Word of mouth referrals. 5) ADreach Street Pole advertising.
6) Website, internet and e-mail.
7) Promote product offering on www.plastixportal.co.za
Ongoing developments and changing trends within the industry will always be considered and
taken into account.
The Company also intends, in time, to evaluate extending the business footprint and will also consider a franchise opportunity.
7.3 Product and Production
The Company intends to specialise in plastic recycling, extrusion, manufacturing and the supply of both recycled High Density Polyethylene (HDPE) and Low Density Polyethylene (LDPE) pellets
as well as Polypropylene (PP) pellets, packaged in 25 kilogram bags and 1 ton bulk loads.
An initial production capacity averaging 225MT during year one is planned and this will grow in the long term to an average yearly production capacity 300 tons during year five.
7.4 HDPE, LDPE and PP Recycling
The pellets are manufactured from pre- and post-consumer plastic waste, viz. plastic that has already been used for its designated purpose and discarded. Refer to Annexure A for further
information on products manufactured from recycled pellets.
8. Company Structure
The Company will have a staff complement of sixteen full time employees, spanning operations, administration and management. The proposed structure is as per the organogram listed in Annexure C.
People recommended for the all positions from Operations through to Board level are as follows –
8.1 Board Positions
Research & Business Development Project Owner Nominee
Operations Project Owner Nominee
Finance Investor Nominee
Shared Services Project Owner Nominee
Governance Investor Nominee
8.2 Management Positions
Research & Development Manager Project Owner Nominee
Operations Manager Project Owner Nominee
Finance Manager Project Owner Nominee
Administration Manager Investor Nominee
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8.3 Operations Positions
Supervisor 1 Appointment by recruitment
Supervisor 2 Appointment by recruitment
Feeder 1 Appointment by recruitment
Feeder 2 Appointment by recruitment
Machine Minder 1 Appointment by recruitment
Machine Minder 2 Appointment by recruitment
Machine Minder 3 Appointment by recruitment
Machine Minder 4 Appointment by recruitment
Packer 1 Appointment by recruitment
Packer 2 Appointment by recruitment
Packer 3 Appointment by recruitment
Packer 4 Appointment by recruitment
8.4 Administration Positions
Recruitment and appointment of all positions extending from Board through to Operations will be done in collaboration between the project owner and investor.
9. Operational Plan
The newly registered company will operate and trade under the duly registered name. The
Company is wholly owned and managed by shareholders who are joint partners in the business venture.
It is intended that sixteen permanent staff members be recruited to undertake the production and manufacturing as well as packaging of the extruded pellets. In addition, casual or contracted staff will be appointed from time to time to provide assistance where the need arises.
A strong emphasis will be placed on continued training and education of personnel, in order to ensure the best customer service at all times and to allow for succession planning, resulting in
vacancies being filled from within. An attractive salary structure, linked to an acceptable human resources policy will be put into place to ensure a happy and motivated staff. In addition, a
scheme for employee participation in the profits of the company will be adopted to create an environment of belonging by all employees.
9.1 Corporate Governance
The management team will be up-skilled in corporate governance principles applicable to the business and will fully understand the principle that the business is an entity separate to the
owners and that the cash and assets of the business are separate from the owners. This discipline will ensure good decision making, viability and sustainability.
Due cognisance will also be taken of the requirements of the Companies Act and other relevant legislation, including good corporate governance as outlined in the King Report. With the objective
of maintaining and increasing the value of the business and attaining the company’s vision, particular attention will be paid to financial management, risk management and human resources.
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9.2 Business Principles
The general principles recommended by King III and which the Company will subscribe to are –
1) Accountability 2) Anti-corruption
3) Ethical Behaviour 4) Participation 5) Respect for the rights of all stakeholders
6) Transparency
9.3 Business Values & Behaviours
The values which the business subscribes to are - 1) Integrity 2) Commitment
3) Accountability 4) Responsibility
5) Prudence
The behaviours which the business subscribes to are -
1) Reliability
2) Punctuality 3) Flexibility
4) Receptiveness
5) Transparency
6) Co-operation 7) Tolerance
9.4 Record Keeping
The shareholders and management of the business recognise the importance of this business
attribute. Management will be responsible to produce monthly business reports (MIS and management accounts) for the review of the Board in addition to normal legislative and accounting reporting requirements.
10. Financial Projections
10.1 Financial Model Assumptions
The high-level financial assumptions are highlighted below with detailed projected financial statements attached as Annexure D. A key point to note is that the financials are based on the Investor committing the start-up capital in lieu of the 51% controlling stake in the
business. Should this departure point require a change in position that will result in the business
having to secure a loan facility then the projected financial statements will have to be adjusted
accordingly to factor in the loan and its repayment with the necessary interest schedule.
10.2 Forecast Sales Assumptions
It is assumed that income will increase at 9% per annum with production starting at 100MT in month one growing to an average of 220MT later in year one and plateauing at 290MT from year
two onwards.
Although the selling price could potentially easily be R8,470/ton, the price used in the projections is conservatively placed at R6,968/ton1.
1 Selling price figures as illustrated in the projected financial statements for year one are as at January 2015.
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This cash flow lag is incorporated by conservatively assuming the supplier (creditors) is paid immediately, while the debtors (vendors) pay a little later (30-days). From a cash flow perspective this will make a significant positive difference towards the working capital requirement as reflected
below –
Debtors collection schedule Year 1 Year 2 Year 3
Current 0% 0% 0%
30 days 50% 50% 50%
60 days 0% 0% 0%
90 days 0% 0% 0%
120 days + 0% 0% 0%
50% 50% 50%
Creditors payment schedule Year 1 Year 2 Year 3
Current 100% 100% 100%
30 days 0% 0% 0%
60 days 0% 0% 0%
90 days 0% 0% 0%
120 days + 0% 0% 0%
100% 100% 100%
10.3 Capital Expenditure and Start-Up Capital
The following summarises the required capital and assumed capital to be placed into the venture:
Amount (R)
Plant machinery – two full lines (see Annexure E) 4,942,833
Truck 300,000
Forklift (x2) 180,000
Trailer 30,000
Company vehicles 300,000
Compressor 20,000
Office equipment & Computers 65,890
Total Capex Funding Requirement 5,838,723
Working Capital, deposits and raw material sock 3,589,925
Total Funding Requirement 12,000,000
Shareholders Capital 12,000,000
Long-term loan 0
Overdraft facility 0
A total funding requirement of R12,000,000 is assumed as adequate to successfully set up and
operate the business by 1st
June 2015.
10.4 Costs
It is assumed that costs will increase in a range of 9% to 25% for differential running expense items
(e.g. insurance and electricity) over a period of three years.
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10.5 Cost of Sales / Purchases
The average price of raw material is assumed to be R2,937/ton. In addition, for the sake of conservancy, from a cash flow perspective, the following creditor’s days have been assumed for
years 1, 2 & 3:
Year 1 Year 2 Year 3
Current 100% 100% 100%
30-days 0% 0% 0%
10.6 Overhead Expenses (Year 1)
1) Owners remuneration – R67,500 per month; 2) Salaries – R110,000 per month; 3) Wages – R122,640 per month 4) Electricity & water – R47,000 per month;
5) Bad Debts – 0.5% of turnover
6) Packaging & transport – R2,000 per month; and 7) Rent premises – R50,000 per month (plus R50,000 deposit upfront).
10.7 Depreciation
The assets were depreciated over their useful lifespan –using a straight-line method of depreciation (plant equipment and vehicles – 5 years; and office equipment & computers – 3
years).
10.8 Tax Considerations
A tax rate of 28% has been assumed. The operation will likely benefit from some concessions, and hence it is still likely that the rate of 28% will prove conservative.
10.9 Projected Financials
Refer to the Annexure D for details of all projected financials; including detailed monthly cash flow.
10.10 Projected Income Statement
The following is a summary of the projected income statement:
Income Statement Year 1 Year 2 Year 3
Total Income 19 783 545 27 497 372 29 972 135
Less: Cost of Sales 8 334 471 11 467 093 12 499 131
Gross Margin 11 449 074 16 030 279 17 473 004
Less: Expenses 6 286 025 6 077 343 6 837 819
Net Income before Interest and Taxation
5 163 049
9 952 936
10 635 185
Less: Interest paid 0 0 0
Net Income after Interest 5 163 049 9 952 936 10 635 185
Less: Tax 1 292 999 2 328 925 2 744 878
Net Income after Tax 3 324 856 6 616 504 7 058 259
Based on the above assumptions, the business will show an operating profit of R3,3 million in the first year and R7 million in year three, before interest and tax.
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10.11 Projected Balance Sheet
The following is a summary of the projected balance sheet:
Balance Sheet Year 1 Year 2 Year 3
CAPITAL EMPLOYED Retained Income – Beginning 0 3 324 856 9 941 360
Net income - For the Year 3 324 856 6 616 504 7 058 259
Loan Account 0 0 0
Shareholder's Interest 12 324 856 18 941 360 25 999 619
Long Term Liabilities - 3-year loan 0 0 0
TOTAL – CAPITAL EMPLOYED 12 324 856 18 941 360 25 999 619
EMPLOYMENT OF CAPITAL Fixed assets 5 558 942 0 0
Current Liabilities 1 292 999 2 573 085 2 744 878
Short term portion of long term liabilities:- Loans 0 0 0
Taxation 1 292 999 2 573 085 2 744 878
Creditors 0 0 0
Current Assets 18 194 672 26 187 974 28 544 891
Debtors 18 144 672 26 187 974 28 544 891
Stock 0 0 0
Bank – Current 0 0 0
Rental paid in advance 50 000 0 0
Net Current Assets/(Liabilities) 16 901 673 23 614 889 25 800 013
TOTAL – EMPLOYMENT OF CAPITAL 22 460 615 23 614 889 25 800 013
The positive cash flow shows that the company will not be challenged with any liquidity problem. If there are no further investments made, the business would have cash reserves of R25 million at the end of the third year of business - after provision for tax.
11. Implementation Plan
11.1 Project Management
The following project management milestone timeline details the primary actions required over the period June 2015 through to December 2015 in order to ensure the successful set up and
operations of the business.
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Project Management Milestone Timelines Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16
Finalise Business Plan Finalise Projected Financials Completed Final Agreements Registration with Plastic Federation of SA Registration of Company at CIPRO Registration with SARS (VAT) Registration with UIF Opening of Banking Facility Appointment of accountant Negotiate and finalise supplier (creditor) agreements Negotiate and finalise vendor (debtor) agreements Secure rental premises Connection of electricty & lights Installation of telecommunication lines Installation of IT networks Order plant machinery and equipment Acquisition of vehicles Acquisition of office equipment Staggered draw down of start-up capital Finalisation of security Finalisation of insurance cover Set-up of office Recruitment of management staff Recruitment of operational staff Recruitment of administrative staff Advertising and Marketing Delivery & Installation of plant machinery Pilot run of processing lines Production of sample end product Marketing of sample end product Opening launch Commission plant
It is envisaged that the business will commence operations on 15th
June 2015.
In order to realise the high level project management plan and achieve the stated milestones within the broad timeframes as set out above it is necessary to embed a project management discipline
with effect from June 2015 to December 2015.
This will require dedicated time and effort from Mr Andre Visser and key stakeholders. A provision
of R90,000 has been provided for and set aside within the running expenses under the expense item “Pre-opening expenses”. This will include a disbursement of R20,000 per month for
Mr Andre Visser payable from June 2015 to December 2015.
This provision accommodates all the activities necessary to set up the business - up to and including the commissioning of the plant into business as usual production. Without this provision
the business cannot come into existence.
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12. Conclusion
In addition to the economic turnaround expected later this year and during 2015 the project owner has considered the important issues relating to establishing the business and are confident that the
Company will enjoy a significant amount of support and be profitable, enabling repayment of the required loan within a period of not more than five years.
All matters pertaining to shareholding, financial structure towards meeting the start-up capital as well as the appointment of directors and management are as proposed by Mr Visser and subject
final negotiations and agreement with the investor(s).
Signed:
Mr André Visser
Date:
Signed:
Mr Christoffel Theron
Date:
Signed:
Mr Ryno Milco Hertz
Date:
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Annexure A: Plastic Product Range Plastics are generally classified by a categorisation system in the form of numbersand accompanying definitions that appear onplastic products. The initial pelletizing to be produced by the Company will cater for –
1) PP 5.
Polypropylene, or PP, is used in products such as diapers, pails, dishes, candy containers, and lab
equipment.
2) HDPE 2.
High-density polyethylene, or No. 2 HDPE, used in shampoo and detergent bottles, milk jugs, cosmetics, motor oil, toys, and sturdy shopping bags, is considered one of the safer plastics.
HDPE is often opaque or cloudy. Some recycling centres can only handle clear No. 2 plastics,
such as milk jugs, but not coloured bottles.
3) LDPE 4.
Low-density polyethylene, or No. 4 LDPE, is used in shopping bags, six-pack rings, hard drive casings, CD and DVD cases, and some bottles.
For information other plastics in the range include -
PET / PETE 1.
This is one of the common types of plastic polyethylene terephthalate (PET or PETE), commonly found in bottles of soda, juice, water, etc. PET is understood to be one of the least toxic forms of
plastic because DEHA, a chemical used in PET, is no longer listed by the EPA as carcinogen. Doctors advise against reusing disposable plastic water bottles not really because of the urban legend of cancer-causing chemicals leaching from water bottles left in hot cars but because they
are hard to clean and can trap bacteria.
V 3.
Polyvinyl chloride, or No. 3 PVC, is found in shower curtains, meat and cheese wrappers, three- ring binders, some bottles, plumbing pipes, and building materials.
PS 6.
Polystyrene, also known as Styrofoam, is used in disposable cups and take-out food containers, packing peanuts, trays, and egg cartons.
Other 7.
The No. 7 SPI code is generally a wild card marking plastics that don’t fall within the other six
categories. These include polycarbonate bottles, which are understood by scientists to wreak
havoc on human hormones by leaching bisphenol-A into hot beverages. As a result, polycarbonate baby bottles are losing favour with the public, and retailers including Toys R Us are starting to sell
more BPA-free bottles.
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Annexure B: Expressions of Intent from Prospective Clients - Ready,
Willing and Able to Acquire Product
Letters of Intent from plastic producers who will consume the pellets from the recycling process of
the company (i.e. PP 5; HDPE 2 and LDPE 4) have been received from -
1) Bravo Flexible Packaging (Pty) Ltd
2) Heavy Mineral Plastics
These letters of intents will consume the total monthly production over the first three years
of operations. This will allow ample flexibility for the company to secure additional product orders
to match planned expansions.
18
19
Annexure C: Proposed Company Organogram
Annexure D: Financial Projections
Source Andre Visser
Client Name Plastic Manufacturing Business
Projection Period 1 May 2015 TO 30 April 2018
Last Financial Information Month Ending Number of Months Type of Enterprise Close Corporation [CC] Private Company [PTY (LTD)] X Partnership Sole Proprietor Assumptions Year 1 Year 2 Year 3 Company Tax Rate 28% 28% 28% Expected % increase in prices 0% 9% 9% Expected % increase in expenses 0% 9% 9% Interest rate on credit balances 0% 0% 0% Overdraft rate 10% 10% 10% Gross Profit % (Spelt out in "Sales" & "COS") 0% 0% 0% Debtors collection schedule Year 1 Year 2 Year 3 Current 0% 0% 0% 30 days 50% 50% 50% 60 days 0% 0% 0% 90 days 0% 0% 0% 120 days + 0% 0% 0% 50% 50% 50% Creditors payment schedule Year 1 Year 2 Year 3 Current 100% 100% 100% 30 days 0% 0% 0% 60 days 0% 0% 0% 90 days 0% 0% 0% 120 days + 0% 0% 0% 100% 100% 100%
Finance Requirements Loan
Amount
Interest
Rate
Period in
Months Instalment
Draw Down
in Months
Loan 1 R 0 0% 12 R 0 1
Loan 2 R 0 0% 24 R 0 1
Loan 3 R 0 0% 36 R 0 1
Loan 4 R 0 0% 48 R 0 1
Loan 5 R 0 0% 60 R 0 1
Loan 6 R 0 0% 36 R 0 1
R 0 R 0.00 Other Institutions Loan 1 R 0 0% 48 R 0 1
Loan 2 R 0 0% 60 R 0 1
R 0 R 0 Total R 0 R 0.00
*Please Note: Selling Price as indicated is based on the Pricing of December 2014. Current Pricing for Sales & Cost of Sales is 6% higher.
Owners Remuneration May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 Total
Research & Development 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 90,000
Operations 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 90,000
Finance 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 90,000
Shared Services 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 90,000
Governance 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 450,000
67,500 67,500 67,500 67,500 67,500 67,500 67,500 67,500 67,500 67,500 67,500 67,500 810,000
Salaries May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 Total
Research & Business Development Manager 15,000 15,000 15,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 225,000
Operations Manager 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 360,000
Finance Manager 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 360,000
Administration Manager 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 360,000
105,000 105,000 105,000 110,000 110,000 110,000 110,000 110,000 110,000 110,000 110,000 110,000 1,305,000
Wages May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 Total
Administrator 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000
Supervisor 1 12,000 12,000 12,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 171,000
Supervisor 2 12,000 12,000 12,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 171,000
Machine Minder 1 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 96,768
Machine Minder 2 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 96,768
Machine Minder 3 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 96,768
Machine Minder 4 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 96,768
Feeder 1 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 96,768
Feeder 2 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 96,768
Packer 1 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 96,768
Packer2 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 96,768
Packer 3 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 96,768
Packer 4 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 8,064 96,768
116,640 116,640 116,640 122,640 122,640 122,640 122,640 122,640 122,640 122,640 122,640 122,640 1,453,680
NOTE: 2IC not built into structure at this stage
1
EXPENSES YEAR 1 Client Name Plastic Manufacturing Business Projection Period 01 May 2015 TO 30 April 2016 Month May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 Total
Accounting Fees 3,300 3,300 3,300 3,300 3,300 3,300 3,300 3,300 3,300 3,300 3,300 3,300 39,600
Advertising 1,100 1,000 1,000 750 750 750 500 500 500 250 250 250 7,600
Bank Charges 2,625 1,976 1,981 2,055 2,060 2,060 2,059 2,059 2,059 2,058 2,058 2,058 25,108
Business Brokering Fee 800,000 0 0 0 0 0 0 0 0 0 0 0 800,000
Cleaning Materials 850 800 800 800 800 800 800 800 800 800 800 800 9,650
Commission 0 0 0 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 27,000
Computer Expenses 650 650 650 650 650 650 650 650 650 650 650 650 7,800
Consumables 550 550 550 550 550 550 550 550 550 550 550 550 6,600
Diesel / Fuel 9,800 9,800 10,000 11,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 136,600
Electricity & Water 47,000 47,000 47,000 47,000 47,000 47,000 47,000 47,000 47,000 47,000 47,000 47,000 564,000
General Expenses 2,100 2,100 2,100 2,100 2,100 2,100 2,100 2,100 2,100 2,100 2,100 2,100 25,200
Insurance 23,000 23,000 23,000 23,000 23,000 23,000 23,000 23,000 23,000 23,000 23,000 23,000 276,000
Legal Expenses 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 19,200
Motor Vehicle Expenses 5,500 5,500 5,500 5,500 5,500 5,500 5,500 5,500 5,500 5,500 5,500 5,500 66,000
Office Expenses 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 13,200
Owners Remuneration 49,500 49,500 49,500 49,500 49,500 49,500 49,500 49,500 49,500 49,500 49,500 49,500 594,000
Packaging & Transport 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24,000
Pension Fund 0 0 0 0 0 0 0 0 0 0 0 0 0
Postage 100 100 100 100 100 100 100 100 100 100 100 100 1,200
Pre-opening expenses 90,000 0 0 0 0 0 0 0 0 0 0 0 90,000
Printing 250 250 250 250 250 250 250 250 250 250 250 250 3,000
Refreshments 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24,000
Rent - Premises 100,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 650,000
Repairs & Maintenance 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24,000
Salaries 105,000 105,000 105,000 110,000 110,000 110,000 110,000 110,000 110,000 110,000 110,000 110,000 1,305,000
Security 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 13,200
Shareholders Loan 0 0 0
Skills Levies 0 0 0 0 0 0 0 0 0 0 0 0 0
Subscriptions 0 0 0 0 0 0 0 0 0 0 0 0 0
Telephone 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 26,400
Travel Expenses 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 26,400
UIF (1% of Salaries & Wages 2,216 2,216 2,216 2,326 2,326 2,326 2,326 2,326 2,326 2,326 2,326 2,326 27,587
Wages 116,640 116,640 116,640 122,640 122,640 122,640 122,640 122,640 122,640 122,640 122,640 122,640 1,453,680
Total 1,374,381 433,582 433,787 448,721 449,726 449,726 449,475 449,475 449,475 449,224 449,224 449,224 6,286,025
2
EXPENSES YEAR 2 Client Name Plastic Manufacturing Business Projection Period 01 May 2016 TO 30 April 2017 Month May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 Total
Accounting Fees 3,597 3,597 3,597 3,597 3,597 3,597 3,597 3,597 3,597 3,597 3,597 3,597 43,164
Advertising 1,210 1,100 1,100 825 825 825 550 550 550 275 275 275 8,360
Bank Charges 2,039 2,039 2,049 2,038 2,038 2,138 2,037 2,037 2,047 2,035 2,035 2,135 24,667
Business Brokering Fee 0 0 0 0 0 0 0 0 0 0 0 0 0
Cleaning Materials 927 872 872 872 872 872 872 872 872 872 872 872 10,519
Commission 0 0 0 3,270 3,270 3,270 3,270 3,270 3,270 3,270 3,270 3,270 29,430
Computer Expenses 709 709 709 709 709 709 709 709 709 709 709 709 8,502
Consumables 600 600 600 600 600 600 600 600 600 600 600 600 7,194
Diesel / Fuel 10,682 10,682 10,900 11,990 13,080 13,080 13,080 13,080 13,080 13,080 13,080 13,080 148,894
Electricity & Water 54,520 54,520 54,520 54,520 54,520 54,520 54,520 54,520 54,520 54,520 54,520 54,520 654,240
General Expenses 2,289 2,289 2,289 2,289 2,289 2,289 2,289 2,289 2,289 2,289 2,289 2,289 27,468
Insurance 25,070 25,070 25,070 25,070 25,070 25,070 25,070 25,070 25,070 25,070 25,070 25,070 300,840
Legal Expenses 1,744 1,744 1,744 1,744 1,744 1,744 1,744 1,744 1,744 1,744 1,744 1,744 20,928
Motor Vehicle Expenses 6,050 6,050 6,050 6,050 6,050 6,050 6,050 6,050 6,050 6,050 6,050 6,050 72,600
Office Expenses 1,199 1,199 1,199 1,199 1,199 1,199 1,199 1,199 1,199 1,199 1,199 1,199 14,388
Owners Remuneration 54,450 54,450 54,450 54,450 54,450 54,450 54,450 54,450 54,450 54,450 54,450 54,450 653,400
Packaging & Transport 2,180 2,180 2,180 2,180 2,180 2,180 2,180 2,180 2,180 2,180 2,180 2,180 26,160
Pension Fund 0 0 0 0 0 0 0 0 0 0 0 0 0
Performance celebration 0 0 2,000 0 0 20,000 0 0 2,000 0 0 20,000 44,000
Postage 98,100 0 0 0 0 0 0 0 0 0 0 0 98,100
Printing 273 273 273 273 273 273 273 273 273 273 273 273 3,270
Refreshments 2,180 2,180 2,180 2,180 2,180 2,180 2,180 2,180 2,180 2,180 2,180 2,180 26,160
Rent - Premises 110,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000 715,000
Repairs & Maintenance 2,180 2,180 2,180 2,180 2,180 2,180 2,180 2,180 2,180 2,180 2,180 2,180 26,160
Salaries 115,500 115,500 115,500 121,000 121,000 121,000 121,000 121,000 121,000 121,000 121,000 121,000 1,435,500
Security 1,199 1,199 1,199 1,199 1,199 1,199 1,199 1,199 1,199 1,199 1,199 1,199 14,388
Shareholders Loan 0 0 0 0 0 0 0 0 0 0 0 0 0
Skills Levies 0 0 0 0 0 0 0 0 0 0 0 0 0
Subscriptions 0 0 0 0 0 0 0 0 0 0 0 0 0
Telephone 2,398 2,398 2,398 2,398 2,398 2,398 2,398 2,398 2,398 2,398 2,398 2,398 28,776
Travel Expenses 2,398 2,398 2,398 2,398 2,398 2,398 2,398 2,398 2,398 2,398 2,398 2,398 28,776
UIF (1% of Salaries & Wages 1,122 572 572 572 572 572 572 572 572 572 572 572 7,412
Wages 128,304 128,304 128,304 134,904 134,904 134,904 134,904 134,904 134,904 134,904 134,904 134,904 1,599,048
Total 630,918 477,103 479,331 493,505 494,595 514,695 494,319 494,319 496,329 494,042 494,042 514,142 6,077,343
3
EXPENSES YEAR 3 Client Name Plastic Manufacturing Business Projection Period 01 May 2017 TO 30 April 2018 Month May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 Total
Accounting Fees 3,921 3,921 3,921 3,921 3,921 3,921 3,921 3,921 3,921 3,921 3,921 3,921 47,049
Advertising 1,331 1,210 1,210 908 908 908 605 605 605 303 303 303 9,196
Bank Charges 2,319 2,319 2,319 2,318 2,318 2,318 2,316 2,316 2,316 2,315 2,315 2,315 27,804
Business Brokering Fee 0 0 0 0 0 0 0 0 0 0 0 0 0
Cleaning Materials 1,010 950 950 950 950 950 950 950 950 950 950 950 11,465
Commission 0 0 0 3,564 3,564 3,564 3,564 3,564 3,564 3,564 3,564 3,564 32,079
Computer Expenses 772 772 772 772 772 772 772 772 772 772 772 772 9,267
Consumables 653 653 653 653 653 653 653 653 653 653 653 653 7,841
Diesel / Fuel 11,643 11,643 11,881 13,069 14,257 14,257 14,257 14,257 14,257 14,257 14,257 14,257 162,294
Electricity & Water 63,243 63,243 63,243 63,243 63,243 63,243 63,243 63,243 63,243 63,243 63,243 63,243 758,918
General Expenses 2,495 2,495 2,495 2,495 2,495 2,495 2,495 2,495 2,495 2,495 2,495 2,495 29,940
Insurance 27,326 27,326 27,326 27,326 27,326 27,326 27,326 27,326 27,326 27,326 27,326 27,326 327,916
Legal Expenses 1,901 1,901 1,901 1,901 1,901 1,901 1,901 1,901 1,901 1,901 1,901 1,901 22,812
Motor Vehicle Expenses 6,655 6,655 6,655 6,655 6,655 6,655 6,655 6,655 6,655 6,655 6,655 6,655 79,860
Office Expenses 1,307 1,307 1,307 1,307 1,307 1,307 1,307 1,307 1,307 1,307 1,307 1,307 15,683
Owners Remuneration 68,063 68,063 68,063 68,063 68,063 68,063 68,063 68,063 68,063 68,063 68,063 68,063 816,750
Packaging & Transport 2,376 2,376 2,376 2,376 2,376 2,376 2,376 2,376 2,376 2,376 2,376 2,376 28,514
Pension Fund 0 0 0 0 0 0 0 0 0 0 0 0 0
Performance celebration 0 1 2 3 4 5 6 7 8 9 10 11 66
Postage 106,929 0 0 0 0 0 0 0 0 0 0 0 106,929
Printing 297 297 297 297 297 297 297 297 297 297 297 297 3,564
Refreshments 2,376 2,376 2,376 2,376 2,376 2,376 2,376 2,376 2,376 2,376 2,376 2,376 28,514
Rent - Premises 121,000 60,500 60,500 60,500 60,500 60,500 60,500 60,500 60,500 60,500 60,500 60,500 786,500
Repairs & Maintenance 2,376 2,376 2,376 2,376 2,376 2,376 2,376 2,376 2,376 2,376 2,376 2,376 28,514
Salaries 132,825 132,825 132,825 139,150 139,150 139,150 139,150 139,150 139,150 139,150 139,150 139,150 1,650,825
Security 1,307 1,307 1,307 1,307 1,307 1,307 1,307 1,307 1,307 1,307 1,307 1,307 15,683
Shareholders Loan 0 0 0 0 0 0 0 0 0 0 0 0 0
Skills Levies 0 0 0 0 0 0 0 0 0 0 0 0 0
Subscriptions 0 0 0 0 0 0 0 0 0 0 0 0 0
Telephone 2,614 2,614 2,614 2,614 2,614 2,614 2,614 2,614 2,614 2,614 2,614 2,614 31,366
Travel Expenses 2,614 2,614 2,614 2,614 2,614 2,614 2,614 2,614 2,614 2,614 2,614 2,614 31,366
UIF (1% of Salaries & Wages 1,234 629 629 629 629 629 629 629 629 629 629 629 8,150
Wages 141,134 141,134 141,134 148,394 148,394 148,394 148,394 148,394 148,394 148,394 148,394 148,394 1,758,953
Total 709,722 541,509 541,747 559,782 560,971 560,972 560,669 560,670 560,671 560,368 560,369 560,370 6,837,819
4
Item Quantity Cost
Aesthetics 2,750
Kitchen - Crockery & Cutlery 24 2,750
Kitchen - Fridge 1 1,650
Kitchen - Kettle 1 275
Kitchen - Microwave 1 825
Managers Laptop 4 30,800
Meeting Room Chairs 8 2,200
Meeting Room Table 1 2,750
Printer - Scanner 1 1,650
Reception Chair 3 550
Reception Desk 1 1,320
Receptionist Laptop 1 5,500
Receptionist Telephone 1 1,320
Server - Computers 1 2,200
Visitors Coffee Table 1 1,100
Visitors Lounge Suite 1 8,250
65,890
5
Item Quantity Cost
Delivery Truck 1 300,000
Company vehicles 2 300,000
Forklift 1 90,000
Forklift 1 90,000
Delivery Trailer 1 30,000
Compressor 1 20,000
Plant Machinery 2 4,663,052
5,493,052
6
ASSEST & DEPRECIATION
Client Name Plastic Manufacturing Business
Financial Year YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Projected Year End 30-Apr-16 30-Apr-17 30-Apr-18 30-Apr-19 30-Apr-20
TERM PERCENTAGE
Land & Buildings 0 1 0 0 0 0 0
Machinery & Vehicles 5 20% 5,493,052 0 0 0 0
Office Equipment & Computers 3 25% 65,890 0 0 0 0
Other Assets 5 20% 0 0 0 0 0
Other 0 0 0 0 0 0 0
5,558,942 0 0 0 0
Depreciation per annum
Land & Buildings 0 0 0 0 0
Machinery & Vehicles 1,098,610 1,098,610 1,098,610 1,098,610 1,098,610
Office Equipment & Computers 21,963 21,963 21,963 0 0
Other Assets 0 0 0 0 0
Other 0 0 0 0 0
CURRENT ASSETS 1,120,574 1,120,574 1,120,574 1,098,610 1,098,610
7
PROJECTED CASH FLOWS YEAR 1 Client Name Plastic Manufacturing Business Projection Period 01 May 2015 TO 30 April 2016 Month May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 Total
Sales ** 696,800 836,160 905,840 1,045,200 1,393,600 1,393,600 2,090,400 2,160,080 2,229,760 2,299,440 2,369,120 1,421,472 17,420,000
Cost of Sales (Purchases) ** 279,800 335,760 363,740 419,700 559,600 559,600 839,400 867,380 895,360 923,340 951,320 570,792 6,995,000
Gross Margin 417,000 500,400 542,100 625,500 834,000 834,000 1,251,000 1,292,700 1,334,400 1,376,100 1,417,800 850,680 10,425,000
Bank Opening Balance 9,000,000 2,058,677 2,125,494 2,233,807 2,410,585 2,794,859 3,179,133 3,980,657 4,823,882 5,708,806 6,635,682 7,604,258 Debtors 0 836,160 905,840 1,045,200 1,393,600 1,393,600 2,090,400 2,160,080 2,229,760 2,299,440 2,369,120 1,421,472 18,144,672
Cash Sales 0 0 0 0 0 0 0 0 0 0 0 0 0
Shareholders Contribution (Loan) 0 0 0 0 0 0 0 0 0 0 0 0 0
Contribution - Other Sources 0 0 0 0 0 0 0 0 0 0 0 0 0
Bank Finance 0 0 0 0 0 0 0 0 0 0 0 0 0
Other Finance 0 0 0 0 0 0 0 0 0 0 0 0 0
Other Income 0 0 0 0 0 0 0 0 0 0 0 0 0
Interest Earned 0 0 0 0 0 0 0 0 0 0 0 0 0
Total Receipts 696,800 836,160 905,840 1,045,200 1,393,600 1,393,600 2,090,400 2,160,080 2,229,760 2,299,440 2,369,120 1,421,472 18,841,472
Expenses 1,374,381 433,582 433,787 448,721 449,726 449,726 449,475 449,475 449,475 449,224 449,224 449,224 6,286,025
Creditors 279,800 335,760 363,740 419,700 559,600 559,600 839,400 867,380 895,360 923,340 951,320 570,792 7,565,792
Capital - Bank 0 0 0 0 0 0 0 0 0 0 0 0 0
Capital - Other 0 0 0 0 0 0 0 0 0 0 0 0 0
Interest - Bank 0 0 0 0 0 0 0 0 0 0 0 0 0
Interest - Other 0 0 0 0 0 0 0 0 0 0 0 0 0
Interest - Overdraft 0 0 0 0 0 0 0 0 0 0 0 0 0
Interest - Shareholders Loan 0 0 0 0 0 0 0 0 0 0 0 0 0
Land & Buildings 0 0 0 0 0 0 0 0 0 0 0 0 0
Machinery & Vehicles 5,493,052 0 0 0 0 0 0 0 0 0 0 0 5,493,052
Office Equipment & Computers 65,890 0 0 0 0 0 0 0 0 0 0 0 65,890
Other Assets 0 0 0 0 0 0 0 0 0 0 0 0 0
Stock 325,000 0 0 0 0 0 0 0 0 0 0 0 325,000
Deposits Paid (1st Month Rent) 100,000 0 0 0 0 0 0 0 0 0 0 0 100,000
Taxation 0 0 0 0 0 0 0 0 0 0 0 0 0
Total Payments 7,638,123 769,342 797,527 868,421 1,009,326 1,009,326 1,288,875 1,316,855 1,344,835 1,372,564 1,400,544 1,020,016 19,835,759
Surplus / Shortfall -6,941,323 66,818 108,313 176,779 384,274 384,274 801,525 843,225 884,925 926,876 968,576 401,456 8,005,713
Bank: Balance / OD Facility 2,058,677 2,125,494 2,233,807 2,410,585 2,794,859 3,179,133 3,980,657 4,823,882 5,708,806 6,635,682 7,604,258 8,005,713 8,005,713
**Please Note: Cost of Sales & Sales Pricing to be increased by 6%
8
PROJECTED CASH FLOWS YEAR 2 Client Name Plastic Manufacturing Business Projection Period 01 May 2016 TO 30 April 2017 Month May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 Total
Sales 1,549,404 1,670,926 1,822,829 1,974,731 2,126,634 2,278,536 2,430,438 2,582,341 2,734,243 2,734,243 2,734,243 1,549,404 24,638,569
Cost of Sales (Purchases) 622,163 670,960 731,957 792,953 853,950 914,946 975,942 1,036,939 1,097,935 1,097,935 1,097,935 622,163 9,893,616
Gross Margin 927,241 999,966 1,090,872 1,181,778 1,272,684 1,363,590 1,454,496 1,545,402 1,636,308 1,636,308 1,636,308 927,241 14,744,953
Bank Opening Balance 8,005,713 7,746,142 8,269,005 8,880,546 9,568,819 10,346,907 11,195,802 12,155,979 13,207,061 14,347,040 15,489,306 16,631,571 Debtors 1,549,404 1,670,926 1,822,829 1,974,731 2,126,634 2,278,536 2,430,438 2,582,341 2,734,243 2,734,243 2,734,243 1,549,404 26,187,974
Cash Sales 0 0 0 0 0 0 0 0 0 0 0 0 0
Shareholders Contribution (Loan) 0 0 0 0 0 0 0 0 0 0 0 0 0
Contribution - Other Sources 0 0 0 0 0 0 0 0 0 0 0 0 0
Bank Finance 0 0 0 0 0 0 0 0 0 0 0 0 0
Other Finance 0 0 0 0 0 0 0 0 0 0 0 0 0
Other Income 0 0 0 0 0 0 0 0 0 0 0 0 0
Interest Earned 0 0 0 0 0 0 0 0 0 0 0 0 0
Total Receipts 1,549,404 1,670,926 1,822,829 1,974,731 2,126,634 2,278,536 2,430,438 2,582,341 2,734,243 2,734,243 2,734,243 1,549,404 26,187,974
Expenses 630,918 477,103 479,331 493,505 494,595 514,695 494,319 494,319 496,329 494,042 494,042 514,142 6,077,343
Creditors 622,163 670,960 731,957 792,953 853,950 914,946 975,942 1,036,939 1,097,935 1,097,935 1,097,935 622,163 10,515,779
Capital - Bank 0 0 0 0 0 0 0 0 0 0 0 0 0
Capital - Other 0 0 0 0 0 0 0 0 0 0 0 0 0
Interest - Bank 0 0 0 0 0 0 0 0 0 0 0 0 0
Interest - Other 0 0 0 0 0 0 0 0 0 0 0 0 0
Interest - Overdraft 0 0 0 0 0 0 0 0 0 0 0 0 0
Interest - Shareholders Loan 0 0 0 0 0 0 0 0 0 0 0 0 0
Land & Buildings 0 0 0 0 0 0 0 0 0 0 0 0 0
Machinery & Vehicles 549,305 0 0 0 0 0 0 0 0 0 0 0 549,305
Office Equipment & Computers 6,589 0 0 0 0 0 0 0 0 0 0 0 6,589
Other Assets 0 0 0 0 0 0 0 0 0 0 0 0 0
Stock 0 0 0 0 0 0 0 0 0 0 0 0 0
Deposits Paid 0 0 0 0 0 0 0 0 0 0 0 0 0
Taxation 0 0 0 0 0 0 0 0 0 0 0 0 0
Total Payments 1,808,975 1,148,064 1,211,288 1,286,459 1,348,545 1,429,641 1,470,262 1,531,258 1,594,265 1,591,978 1,591,978 1,136,306 17,149,017
Surplus / Shortfall -259,571 522,863 611,541 688,273 778,089 848,895 960,177 1,051,083 1,139,979 1,142,266 1,142,266 413,099 17,044,670
Bank: Balance / OD Facility 7,746,142 8,269,005 8,880,546 9,568,819 10,346,907 11,195,802 12,155,979 13,207,061 14,347,040 15,489,306 16,631,571 17,044,670 17,044,670
9
PROJECTED CASH FLOWS YEAR 3 Client Name Plastic Manufacturing Business Projection Period 01 May 2017 TO 30 April 2018 Month May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 Total
Sales 1,688,851 1,821,310 1,986,883 2,152,457 2,318,031 2,483,604 2,649,178 2,814,751 2,980,325 2,980,325 2,980,325 1,688,851 26,856,041
Cost of Sales (Purchases) 678,158 731,347 797,833 864,319 930,805 997,291 1,063,777 1,130,263 1,196,749 1,196,749 1,196,749 678,158 10,784,042
Gross Margin 1,010,693 1,089,963 1,189,050 1,288,138 1,387,226 1,486,313 1,585,401 1,684,488 1,783,576 1,783,576 1,783,576 1,010,693 16,071,999
Bank Opening Balance 17,044,670 16,789,747 17,338,201 17,985,505 18,713,861 19,540,115 20,465,456 21,490,188 22,614,007 23,836,912 25,060,119 26,283,326 Debtors 1,688,851 1,821,310 1,986,883 2,152,457 2,318,031 2,483,604 2,649,178 2,814,751 2,980,325 2,980,325 2,980,325 1,688,851 28,544,891
Cash Sales 0 0 0 0 0 0 0 0 0 0 0 0 0
Shareholders Contribution (Loan) 0 0 0 0 0 0 0 0 0 0 0 0 0
Contribution - Other Sources 0 0 0 0 0 0 0 0 0 0 0 0 0
Bank Finance 0 0 0 0 0 0 0 0 0 0 0 0 0
Other Finance 0 0 0 0 0 0 0 0 0 0 0 0 0
Other Income 0 0 0 0 0 0 0 0 0 0 0 0 0
Interest Earned 0 0 0 0 0 0 0 0 0 0 0 0 0
Total Receipts 1,688,851 1,821,310 1,986,883 2,152,457 2,318,031 2,483,604 2,649,178 2,814,751 2,980,325 2,980,325 2,980,325 1,688,851 28,544,891
Expenses 709,722 541,509 541,747 559,782 560,971 560,972 560,669 560,670 560,671 560,368 560,369 560,370 6,837,819
Creditors 678,158 731,347 797,833 864,319 930,805 997,291 1,063,777 1,130,263 1,196,749 1,196,749 1,196,749 678,158 11,462,200
Capital - Bank 0 0 0 0 0 0 0 0 0 0 0 0 0
Capital - Other 0 0 0 0 0 0 0 0 0 0 0 0 0
Interest - Bank 0 0 0 0 0 0 0 0 0 0 0 0 0
Interest - Other 0 0 0 0 0 0 0 0 0 0 0 0 0
Interest - Overdraft 0 0 0 0 0 0 0 0 0 0 0 0 0
Interest - Shareholders Loan 0 0 0 0 0 0 0 0 0 0 0 0 0
Land & Buildings 0 0 0 0 0 0 0 0 0 0 0 0 0
Machinery & Vehicles 549,305 0 0 0 0 0 0 0 0 0 0 0 549,305
Office Equipment & Computers 6,589 0 0 0 0 0 0 0 0 0 0 0 6,589
Other Assets 0 0 0 0 0 0 0 0 0 0 0 0 0
Stock 0 0 0 0 0 0 0 0 0 0 0 0 0
Deposits Paid 0 0 0 0 0 0 0 0 0 0 0 0 0
Taxation 0 0 0 0 0 0 0 0 0 0 0 0 0
Total Payments 1,943,774 1,272,855 1,339,580 1,424,101 1,491,776 1,558,263 1,624,446 1,690,933 1,757,420 1,757,118 1,757,119 1,238,528 18,855,913
Surplus / Shortfall -254,923 548,454 647,303 728,356 826,254 925,341 1,024,732 1,123,819 1,222,905 1,223,208 1,223,207 450,323 26,733,649
Bank: Balance / OD Facility 16,789,747 17,338,201 17,985,505 18,713,861 19,540,115 20,465,456 21,490,188 22,614,007 23,836,912 25,060,119 26,283,326 26,733,649 26,733,649
10
SALES INCOME & COST OF SALES YEAR 1 Client Name Plastic Manufacturing Business Period 01 May 2015 TO 30 April 2016 Month Income / Unit May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 Total
TURNOVER
SALES VOLUME Recycled LDPE 6968 100 120 130 150 200 200 300 310 320 330 340 204 2704
Other 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Product 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0
1. Sale of Primary Product Excludes VAT Recycled LDPE 6968 696,800 836,160 905,840 1,045,200 1,393,600 1,393,600 2,090,400 2,160,080 2,229,760 2,299,440 2,369,120 1,421,472 18,841,472
Other 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Sub-Total 696,800 836,160 905,840 1,045,200 1,393,600 1,393,600 2,090,400 2,160,080 2,229,760 2,299,440 2,369,120 1,421,472 18,841,472
2. Sale of Other Excludes VAT Product 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Sub-Total 0 0 0 0 0 0 0 0 0 0 0 0 0
TOTAL TURNOVER 696,800 836,160 905,840 1,045,200 1,393,600 1,393,600 2,090,400 2,160,080 2,229,760 2,299,440 2,369,120 1,421,472 18,841,472
COST OF SALES 1. Sale of Primary Product Excludes VAT Recycled LDPE 2798 279,800 335,760 363,740 419,700 559,600 559,600 839,400 867,380 895,360 923,340 951,320 570,792 7,565,792
Other 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Sub-Total 279,800 335,760 363,740 419,700 559,600 559,600 839,400 867,380 895,360 923,340 951,320 570,792 7,565,792
2. Sale of Other Excludes VAT Product 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Sub-Total 0 0 0 0 0 0 0 0 0 0 0 0 0
TOTAL COST OF SALES 279,800 335,760 363,740 419,700 559,600 559,600 839,400 867,380 895,360 923,340 951,320 570,792 7,565,792
GROSS MARGIN 417,000 500,400 542,100 625,500 834,000 834,000 1,251,000 1,292,700 1,334,400 1,376,100 1,417,800 850,680 11,275,680
GROSS MARGIN AS % TURNOVER 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60%
11
SALES INCOME & COST OF SALES YEAR 2
Client Name Plastic Manufacturing Business Period 01 May 2016 TO 31 April 2017 Month Income / Unit May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 Total
TURNOVER
SALES VOLUME Recycled LDPE 7595.12 204 220 240 260 280 300 320 340 360 360 360 204 3448
Other 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Product 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0
1. Sale of Primary Product Excludes VAT Recycled LDPE 7595.12 1,549,404 1,670,926 1,822,829 1,974,731 2,126,634 2,278,536 2,430,438 2,582,341 2,734,243 2,734,243 2,734,243 1,549,404 26,187,974
Other 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Sub-Total 1,549,404 1,670,926 1,822,829 1,974,731 2,126,634 2,278,536 2,430,438 2,582,341 2,734,243 2,734,243 2,734,243 1,549,404 26,187,974
2. Sale of Other Excludes VAT Product 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Sub-Total 0 0 0 0 0 0 0 0 0 0 0 0 0
TOTAL TURNOVER 1,549,404 1,670,926 1,822,829 1,974,731 2,126,634 2,278,536 2,430,438 2,582,341 2,734,243 2,734,243 2,734,243 1,549,404 26,187,974
COST OF SALES 1. Sale of Primary Product Excludes VAT Recycled LDPE 3,050 622,163 670,960 731,957 792,953 853,950 914,946 975,942 1,036,939 1,097,935 1,097,935 1,097,935 622,163 10,515,779
Other 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Sub-Total 622,163 670,960 731,957 792,953 853,950 914,946 975,942 1,036,939 1,097,935 1,097,935 1,097,935 622,163 10,515,779
2. Sale of Other Excludes VAT Product 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Sub-Total 0 0 0 0 0 0 0 0 0 0 0 0 0
TOTAL COST OF SALES 622,163 670,960 731,957 792,953 853,950 914,946 975,942 1,036,939 1,097,935 1,097,935 1,097,935 622,163 10,515,779
GROSS MARGIN 927,241 999,966 1,090,872 1,181,778 1,272,684 1,363,590 1,454,496 1,545,402 1,636,308 1,636,308 1,636,308 927,241 15,672,194
GROSS MARGIN AS % TURNOVER 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60%
12
SALES INCOME & COST OF SALES YEAR 3 Client Name Plastic Manufacturing Business Period 01 May 2017 TO 30 April 2018 Month Income / Unit May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 Total
TURNOVER
SALES VOLUME Recycled LDPE 8,279 204 220 240 260 280 300 320 340 360 360 360 204 3448
Other 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Product 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0
1. Sale of Primary Product Excludes VAT Recycled LDPE 8,279 1,688,851 1,821,310 1,986,883 2,152,457 2,318,031 2,483,604 2,649,178 2,814,751 2,980,325 2,980,325 2,980,325 1,688,851 28,544,891
Other 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Sub-Total 1,688,851 1,821,310 1,986,883 2,152,457 2,318,031 2,483,604 2,649,178 2,814,751 2,980,325 2,980,325 2,980,325 1,688,851 28,544,891
2. Sale of Other Excludes VAT Product 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Sub-Total 0 0 0 0 0 0 0 0 0 0 0 0 0
TOTAL TURNOVER 1,688,851 1,821,310 1,986,883 2,152,457 2,318,031 2,483,604 2,649,178 2,814,751 2,980,325 2,980,325 2,980,325 1,688,851 28,544,891
COST OF SALES 1. Sale of Primary Product Excludes VAT Recycled LDPE 3,324 678,158 731,347 797,833 864,319 930,805 997,291 1,063,777 1,130,263 1,196,749 1,196,749 1,196,749 678,158 11,462,200
Other 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Sub-Total 678,158 731,347 797,833 864,319 930,805 997,291 1,063,777 1,130,263 1,196,749 1,196,749 1,196,749 678,158 11,462,200
2. Sale of Other Excludes VAT Product 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Sub-Total 0 0 0 0 0 0 0 0 0 0 0 0 0
TOTAL COST OF SALES 678,158 731,347 797,833 864,319 930,805 997,291 1,063,777 1,130,263 1,196,749 1,196,749 1,196,749 678,158 11,462,200
GROSS MARGIN 1,010,693 1,089,963 1,189,050 1,288,138 1,387,226 1,486,313 1,585,401 1,684,488 1,783,576 1,783,576 1,783,576 1,010,693 17,082,692
GROSS MARGIN AS % TURNOVER 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60%
13
SALES INCOME & COST OF SALES YEAR 4
Client Name Plastic Manufacturing Business Period 01 May 2018 TO 30 April 2019 Month Income / Unit May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 Total
TURNOVER
SALES VOLUME Recycled LDPE 9,024 204 220 240 260 280 300 320 340 360 360 360 204 3448
Other 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Product 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0
1. Sale of Primary Product Excludes VAT Recycled LDPE 9,024 1,840,847 1,985,228 2,165,703 2,346,178 2,526,653 2,707,129 2,887,604 3,068,079 3,248,554 3,248,554 3,248,554 1,840,847 31,113,932
Other 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Sub-Total 1,840,847 1,985,228 2,165,703 2,346,178 2,526,653 2,707,129 2,887,604 3,068,079 3,248,554 3,248,554 3,248,554 1,840,847 31,113,932
2. Sale of Other Excludes VAT Product 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Sub-Total 0 0 0 0 0 0 0 0 0 0 0 0 0
TOTAL TURNOVER 1,840,847 1,985,228 2,165,703 2,346,178 2,526,653 2,707,129 2,887,604 3,068,079 3,248,554 3,248,554 3,248,554 1,840,847 31,113,932
COST OF SALES 1. Sale of Primary Product Excludes VAT Recycled LDPE 3,623 739,192 797,168 869,638 942,108 1,014,578 1,087,047 1,159,517 1,231,987 1,304,457 1,304,457 1,304,457 739,192 12,493,797
Other 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Sub-Total 739,192 797,168 869,638 942,108 1,014,578 1,087,047 1,159,517 1,231,987 1,304,457 1,304,457 1,304,457 739,192 12,493,797
2. Sale of Other Excludes VAT Product 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Sub-Total 0 0 0 0 0 0 0 0 0 0 0 0 0
TOTAL COST OF SALES 739,192 797,168 869,638 942,108 1,014,578 1,087,047 1,159,517 1,231,987 1,304,457 1,304,457 1,304,457 739,192 12,493,797
GROSS MARGIN 1,101,655 1,188,060 1,296,065 1,404,070 1,512,076 1,620,081 1,728,087 1,836,092 1,944,098 1,944,098 1,944,098 1,101,655 18,620,134
GROSS MARGIN AS % TURNOVER 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60%
14
SALES INCOME & COST OF SALES YEAR 5
Client Name Plastic Manufacturing Business Period 01 May 2019 TO 30 April 2020 Month Income / Unit May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 Total
TURNOVER
SALES VOLUME Recycled LDPE 9,836 204 220 240 260 280 300 320 340 360 360 360 204 3448
Other 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Product 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0
1. Sale of Primary Product Excludes VAT Recycled LDPE 9,836 2,006,524 2,163,898 2,360,616 2,557,334 2,754,052 2,950,770 3,147,488 3,344,206 3,540,924 3,540,924 3,540,924 2,006,524 33,914,185
Other 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Sub-Total 2,006,524 2,163,898 2,360,616 2,557,334 2,754,052 2,950,770 3,147,488 3,344,206 3,540,924 3,540,924 3,540,924 2,006,524 33,914,185
2. Sale of Other Excludes VAT Product 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Sub-Total 0 0 0 0 0 0 0 0 0 0 0 0 0
TOTAL TURNOVER 2,006,524 2,163,898 2,360,616 2,557,334 2,754,052 2,950,770 3,147,488 3,344,206 3,540,924 3,540,924 3,540,924 2,006,524 33,914,185
COST OF SALES 1. Sale of Primary Product Excludes VAT Recycled LDPE 3,950 805,719 868,913 947,905 1,026,897 1,105,889 1,184,882 1,263,874 1,342,866 1,421,858 1,421,858 1,421,858 805,719 13,618,239
Other 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Sub-Total 805,719 868,913 947,905 1,026,897 1,105,889 1,184,882 1,263,874 1,342,866 1,421,858 1,421,858 1,421,858 805,719 13,618,239
2. Sale of Other Excludes VAT Product 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Sub-Total 0 0 0 0 0 0 0 0 0 0 0 0 0
TOTAL COST OF SALES 805,719 868,913 947,905 1,026,897 1,105,889 1,184,882 1,263,874 1,342,866 1,421,858 1,421,858 1,421,858 805,719 13,618,239
GROSS MARGIN 1,200,804 1,294,985 1,412,711 1,530,437 1,648,163 1,765,889 1,883,615 2,001,340 2,119,066 2,119,066 2,119,066 1,200,804 20,295,946
GROSS MARGIN AS % TURNOVER 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60%
INCOME STATEMENT
Client Name Plastic Manufacturing Business
Period 01 May 2015 TO 30 April 2020
Financial Year YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Projected Year End 30-Apr-16 30-Apr-17 30-Apr-18 30-Apr-19 30-Apr-20
Number of Months 12 12 12 12 12
Average Sales per month 1,570,123 2,182,331 2,378,741 2,592,828 2,826,182
Breakeven Sales per month SALES 18,841,472 26,187,974 28,544,891 31,113,932 33,914,185
1. Sales of Primary Product 18,841,472 26,187,974 28,544,891 31,113,932 33,914,185
2. Sales of Other 0 0 0 0 0
3. Sales of Product 2 0 0 0 0 0
COST OF SALES 7,937,592 10,921,041 11,903,935 12,975,290 14,143,065
Stock - Opening 348,400 379,756 413,934 451,188 491,795
Purchaces 7,914,192 10,895,535 11,876,134 12,944,986 14,110,034
Stock - Closing -325,000 -354,250 -386,133 -420,884 -458,764
GROSS PROFIT 10,903,880 15,266,932 16,640,957 18,138,642 19,771,120
Interest Received 0 0 0 0 0
Gross Income 10,903,880 15,266,932 16,640,957 18,138,642 19,771,120
EXPENSES 6,286,025 6,077,343 6,837,819 7,586,470 8,424,663
Accounting Fees 39,600 43,164 47,049 51,283 55,899
Advertising 7,600 8,360 9,196 10,116 11,127
Bank Charges 25,108 24,667 27,804 30,306 33,034
Bookkeeping 800,000 0 0 0 0
Cleaning Materials 9,650 10,519 11,465 12,497 13,622
Commission 27,000 29,430 32,079 34,966 38,113
Computer Expenses 7,800 8,502 9,267 10,101 11,010
Consumables 6,600 7,194 7,841 8,547 9,316
Diesel / Fuel 136,600 148,894 162,294 176,901 192,822
Electricity & Water 564,000 654,240 758,918 910,702 1,092,842
General Expenses 25,200 27,468 29,940 32,635 35,572
Insurance 276,000 300,840 327,916 357,428 389,597
Legal Expenses 19,200 20,928 22,812 24,865 27,102
Motor Vehicle Expenses 66,000 72,600 79,860 87,846 96,631
Office Expenses 13,200 14,388 15,683 17,094 18,633
Owners Remuneration 594,000 653,400 816,750 914,760 1,024,531
Packaging & Transport 24,000 26,160 28,514 31,081 33,878
Pension Fund 0 0 0 0 0
Performance celebration 1,200 44,000 66 72 78
Postage 90,000 98,100 106,929 116,553 127,042
Printing 3,000 3,270 3,564 3,885 4,235
Refreshments 24,000 26,160 28,514 31,081 33,878
Rent - Premises 650,000 715,000 786,500 865,150 951,665
Repairs & Maintenance 24,000 26,160 28,514 31,081 33,878
Salaries 1,305,000 1,435,500 1,650,825 1,815,908 1,997,498
Security 13,200 14,388 15,683 17,094 18,633
Shareholders Loan 0 0 0 0 0
Skills Levies 0 0 0 0 0
Subscriptions 0 0 0 0 0
Telephone 26,400 28,776 31,366 34,189 37,266
Travel Expenses 26,400 28,776 31,366 34,189 37,266
UIF (1% of Salaries & Wages) 27,587 7,412 8,150 8,884 9,683
Wages 1,453,680 1,599,048 1,758,953 1,917,259 2,089,812
NET INCOME BEFORE INTEREST AND TAXATION 4,617,855 9,189,589 9,803,137 10,552,172 11,346,457
Interest - Bank 0 0 0 0 0
Interest - Other 0 0 0 0 0
Interest - Overdraft 0 0 0 0 0
Interest - Shareholders Loan 0 0 0 0 0
NET INCOME AFTER INTEREST 4,617,855 9,189,589 9,803,137 10,552,172 11,346,457
Taxation 1,292,999 2,573,085 2,744,878 2,954,608 3,177,008
Abnormal Items 0 0 0 0 0
NET INCOME 3,324,856 6,616,504 7,058,259 7,597,564 8,169,449
Depreciation 1,120,574 1,120,574 1,120,574 1,098,610 1,098,610
Funds Generated 3,324,856 6,616,504 7,058,259 7,597,564 8,169,449
Capital - Main Bank 0 0 0 0 0
Capital - Other 0 0 0 0 0
NET FUNDS GENERATED 3,324,856 6,616,504 7,058,259 7,597,564 8,169,449
GROSS PROFIT PERCENTAGE 72.00% 72.00% 72.00% 72.00% 72.00%
BALANCE SHEET Client Name Plastic Manufacturing Business
Period 01 May 2015 TO 30 April 2020
Financial Year YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Projected Year End 30-Apr-16 30-Apr-17 30-Apr-18 30-Apr-19 30-Apr-20
CAPITAL EMPLOYED
Share Capital 9,000,000 9,000,000 9,000,000 0 0
Retained Income - Beginning 0 3,324,856 9,941,360 0 0
Net Income for the year 3,324,856 6,616,504 7,058,259 0 0
Loan Account Shareholders Interest 12,324,856 18,941,360 25,999,619 0 0 Long Term Liabilities
Bank 0 0 0 0 0
Other 0 0 0 0 0
12,324,856 18,941,360 25,999,619 0 0
FIXED ASSETS 5,558,942 0 0 0 0
Land & Buildings 0 0 0 0 0
Equipment & Vehicles 5,493,052 0 0 0 0
Office Equipment & Computers 65,890 0 0 0 0
Other Assets 0 0 0 0 0
Other Investments 0 0 0 0 0
Deposits Paid 0 0 0 0 0
CURRENT LIABILITIES 1,292,999 2,573,085 2,744,878 0 0
Short term portion of long term liabilities Main Bank 0 0 0 0 0
Other 0 0 0 0 0
Associated Company Taxation 1,292,999 2,573,085 2,744,878 0 0
Creditors 0 0 0 0 0
Overdraft 0 0 0 0 0
Shareholders Loan 0 0 0 0 0
CURRENT ASSETS 18,194,672 26,187,974 28,544,891 0 0
Debtors 18,144,672 26,187,974 28,544,891 0 0
Rental paid in Advance 50,000 0 0 0 0
Stock 0 0 0 0 0
Associated Company 0 0 0 0 0
Bank - Current 0 0 0 0 0
Bank - Savings 0 0 0 0 0
Net Current Assets / (Liabilities) 16,901,673 23,614,889 25,800,013 0 0
22,460,615 23,614,889 25,800,013 0 0
1
Months to Break-Even 1 2 3 4 5 6 7 8 9 10 11 12
Total Turnover 696,800 836,160 905,840 1,045,200 1,393,600 1,393,600 2,090,400 2,160,080 2,229,760 2,299,440 2,369,120 1,421,472
Less: Cost of Sales 279,800 335,760 363,740 419,700 559,600 559,600 839,400 867,380 895,360 923,340 951,320 570,792
Less: Running Expenses 1,374,381 433,582 433,787 448,721 449,726 449,726 449,475 449,475 449,475 449,224 449,224 449,224
Net Income -957,381 66,818 108,313 176,779 384,274 384,274 801,525 843,225 884,925 926,876 968,576 401,456
Cumulative Net Income -957,381 -890,564 -782,251 -605,473 -221,199 163,075 964,599 1,807,824 2,692,748 3,619,624 4,588,200 4,989,655
Months to Break-Even 13 14 15 16 17 18 19 20 21 22 23 24
Total Turnover R 1,549,404 1,670,926 1,822,829 1,974,731 2,126,634 2,278,536 2,430,438 2,582,341 2,734,243 2,734,243 2,734,243 1,549,404
Less: Cost of Sales R 622,163 670,960 731,957 792,953 853,950 914,946 975,942 1,036,939 1,097,935 1,097,935 1,097,935 622,163
Less: Running Expenses R 630,918 477,103 479,331 493,505 494,595 514,695 494,319 494,319 496,329 494,042 494,042 514,142
Net Income R 296,323 522,863 611,541 688,273 778,089 848,895 960,177 1,051,083 1,139,979 1,142,266 1,142,266 413,099
Cumulative Net Income R 5,285,979 5,808,841 6,420,382 7,108,655 7,886,743 8,735,638 9,695,815 10,746,898 11,886,876 13,029,142 14,171,408 14,584,507
22 Months = Break Even against
R12,000,000 Start Up Cost
Annexure E: Quotation for Plant & Machinery
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