C O O LER PLANET
SOLAR ENERGY (PVT.)
LIMITED
LETTER OF TRANSMITTAL
Respected Madam,
It is our great pleasure to submit a business plan”Cooler Planet Solar Energy (Pvt)
Ltd”. The business plan is the theoretical knowledge employed in a realistic business
model. We hope the plan will supplement our course requirement and our
understanding of the course objective.
We have tried our best under your prodigious supervision to represent the business
plan in a comprehensive manner. Despite our endeavor there is possibility that the
business plan contains inadvertent error; we expect your lenient view towards any
such mistakes. We shall be glad if you kindly accept our effort.
Thanking you,
Group Members
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Cooler Planet Solar System
INDEX
Topic Page no
Introduction 6 - 10
Description of the Firm 10 - 19
Products & Services 19 - 23
Market Analysis 24 - 28
Marketing Strategy for our product 29 - 39
SWOT analysis 40 - 41
Organogram 42
Salary Structure 43 - 45
Work Policy 46 – 47
Product life cycle 47 - 48
Aspiration & Vision 49
Critical Risk Analysis of Cooler Planet 50 - 52
Financial Analysis 53 - 86
Concluding Remarks 87
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Cooler Planet Solar System
ACKNOWLEDGEMENT
This dissertation is a mix of practical & theoretical analysis on preparation of
Business plan named “Cooler Planet Solar Energy (Pvt) Ltd”. We are very much
grateful to our respectable teacher Mrs. Jesmin Sultana for her outstanding
suggestions, wide guidance creative and thought provoking instruction for the study
without which it would not come to light. We are also grateful to the officials of
Rahimafrooz Renewable energy who helped us with their positive attitude to provide
necessary information for preparing the business plan. Primary Data has been
collected from Rahimafrooz Renewable Energy while secondary data has been
obtained from newspapers, websites and magazines. We once again show our
heartfelt gratitude to our teacher Mrs. Jesmin Sultana for her wholehearted support
towards preparing the business plan.
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Cooler Planet Solar System
EXECUTIVE SUMMARY
Solar energy has been used in Bangladesh for centuries in a variety of economic
activities such as drying of washed clothes, food grains, fish, vegetable, raw jute etc
and evaporation of saline water for salt production. There are various activities in
rural Bangladesh which totally depend on the use of solar energy if these could be
performed more quickly and efficiently by using simple devices, it would increase
productivity without making and demand on commercial energy sources. In
Bangladesh research and development work to harness solar energy in the form of
heat has been going on for many years at Dhaka University, Bangladesh Agriculture
University, BUET, Solar Park of Dhaka College and BCSIR Laboratories. In an aim to
uphold sustainable power, “COOLER PLANET SOLAR ENERGY (PVT.) LTD” is
being established to serve the rural people of the country. The main motive of the
company is to make a load shedding free country. The dissertation here lays a
comprehensive business plan of the company. A detailed strategy formulation and
business forecasting has been appended in this report comprising marketing plan,
sales strategy, Management formation, Company’s aim and vision.
Introduction
Business plans are decision-making tools. There is no fixed content for a business
plan. Rather the content and format of the business plan is determined by the goals
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Cooler Planet Solar System
and audience. A business plan represents all aspects of business planning process;
declaring vision and strategy alongside sub-plans to cover marketing, finance,
operations, human resources as well as a legal plan, when required. A business plan
is a bind summary of those disciplinary plans.
For example, a business plan for a non-profit might discuss the fit between the
business plan and the organization’s mission. Banks are quite concerned about
defaults, so a business plan for a bank loan will build a convincing case for the
organization’s ability to repay the loan. Venture capitalists are primarily concerned
about initial investment, feasibility, and exit valuation. A business plan for a project
requiring equity financing will need to explain why current resources, upcoming
growth opportunities, and sustainable competitive advantage will lead to a high exit
valuation.
Preparing a business plan draws on a wide range of knowledge from many different
business disciplines: finance, human resource management, intellectual property
management, supply chain management, operations management, and marketing,
among others. It can be helpful to view the business plan as a collection of sub-
plans, one for each of the main business disciplines.
"A good business plan can help to make a good business credible, understandable,
and attractive to someone who is unfamiliar with the business. Writing a good
business plan can’t guarantee success, but it can go a long way toward reducing the
odds of failure."
Renewable energy is energy which comes from natural resources such as sunlight,
wind, rain, tides, and geothermal heat, which are renewable (naturally replenished).
In 2008, about 19% of global final energy consumption came from renewable. Solar
power is the generation of electricity from sunlight. This can be direct as with
photovoltaic’s (PV), or indirect as with concentrating solar power (CSP), where the
sun's energy is focused to boil water which is then used to provide power. Solar
power had the potential to provide over 1,000 times total world energy consumption
in 2008,[citation needed] though it provided 0.02% of the total that year. If it
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Cooler Planet Solar System
continues to double in use every two to three years, or less, it would become the
dominant energy source this century. The largest solar power plants, like the 354
MW SEGS, are concentrating solar thermal plants, but recently multi-megawatt
photovoltaic plants have been built. Completed in 2008, the 46 MW Moura
photovoltaic power station in Portugal and the 40 MW Waldpolenz Solar Park in
Germany appear to be characteristic of the trend toward larger photovoltaic power
stations. Larger ones are proposed, such as the 100 MW Fort Peck Solar Farm the
550 MW Topaz Solar Farm, and the 600 MW Rancho Cielo Solar Farm.
Electricity is the major source of power for country's most of the economic activities.
Bangladesh's installed electric generation capacity was 4.7 GW in 2009; only three-
fourth of which is considered to be ‘available’. Only 40% of the population has access
to electricity with a per capita availability of 136 kWh per annum. Problems in the
Bangladesh's electric power sector include corruption in administration, high system
losses, and delays in completion of new plants, low plant efficiencies, erratic power
supply, electricity theft, blackouts, and shortages of funds for power plant
maintenance. Overall, the country's generation plants have been unable to meet
system demand over the past decade.
In generating and distributing electricity, the failure to adequately manage the load
leads to extensive load shedding which results in severe disruption in the industrial
production and other economic activities. A recent survey reveals that power outages
result in a loss of industrial output worth $1 billion a year which reduces the GDP
growth by about half a percentage point in Bangladesh. A major hurdle in efficiently
delivering power is caused by the inefficient distribution system. It is estimated that
the total transmission and distribution losses in Bangladesh amount to one-third of
the total generation, the value of which is equal to US $247 million per year.
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Renewable Energy Sector in Bangladesh
Bangladesh has 15 MW solar energy capacities through rural households and 1.9
MW wind power in Kutubdia and Feni. Bangladesh has planned to produce 5% of
total power generation by 2015 & 10% by 2020 from renewable energy sources like
air, waste & solar energy. That means Bangladesh will be produce 500 MW
electricity from solar energy sector in next 10 years.
“Bringing modern energy services to the 1.6 billion people who lack access to
electricity and the 2.4 billion who rely on traditional biomass for cooking and heating
is a major challenge. As of 2008 the richest 20% of the world’s population consume
58% of total energy, whereas the poorest 20% consume less than 4%. The majority
of those underserved are the poor in Sub-Saharan Africa and South Asia.” (The
Word Bank 2008, p. 4).
Electrification levels in South Asia vary between 15% and 62% of the population; for
South East Asia levels vary from 5% to 100 %, levels in the different countries in the
sub-region vary widely, from maximum of 100% in Singapore to the minimum of 5%
in Myanmar. Electrification level in Bangladesh was 41% in 2008.
Since the electricity supply is mainly limited to the urban areas. Bangladesh has
made very little progress in its rural electrification efforts. Back in 2005-06, only
25.5% of total population in Bangladesh had access to electricity. That proportion
had moved up to only 41.2% of total population having access to electricity (80.4% in
urban areas and 18.7% in rural areas) for the year 2008.
Providing electricity to the remaining 58.8% population is not so easy task. The need
of alternative and renewable energy sources of Bangladesh cannot be
overemphasized. According to “Bangladesh Energy Resources and Renewable
Energy Prospects” the fuel import bill is over 70% of total export earnings of
Bangladesh of the total energy supply.
“Out of about 25 million households of the country, only around 4.2 million had been
brought under the network of conventional electricity till to-date. Since the rural
network is characterized by a comparatively lower consumer density, it often
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Cooler Planet Solar System
becomes difficult and uneconomic to extend lines to certain remote locations within
the command area of a member owned Palli Bidyut Samity (PBS) under Rural
Electrification Board. Moreover some remote areas are not likely to be covered by
the grid network due to inaccessibility and low consumer density. Renewable Energy
Technologies are considered as viable technical options for such remote areas,
especially for ensuring equitable development of all areas and different cross-
sections of socio-economic groups”.
Cooler Planet Solar energy is one of the leading and largest integrated alternative
energy supply companies in Bangladesh. Our goal and vision is to bring affordable
energy solutions to the consumers.
At a time when the world is clamoring for affordable ‘Green' energy, and made
significant stride in it's development by harnessing energy from Solar, Wind, Tidal
etc., cooler planet will contribute by helping to bring these innovations to the public at
large.
COOLER PLANET SOLAR ENERGY developed a highly integrated structure that will
help to fill up the tremendous shortage of energy in Bangladesh. In this regard, we
will, with our high level of technical skills, provide solutions that can be as small and
simple as a small solar table lamp to the mega projects of providing megawatts of
energy.
COOLER PLANET SOLAR ENERGY (PVT.) LTD is a private limited company. The
main motive of the company is to make a load shedding free country. And our brand
message is solar energy- brings sun in your life. We are different from other because
we provide you full credit facility with zero deposit and we have different packages as
your need. We don’t say you to cut your greed line, use solar panel beside your
greed line. And save the valuable resources of our country as much as you can, at
the same time save your own money also. We setup our industry at chandina,
comilla, which covering a area of 5 bigha . And our projected cost is 14 crore 71 lakh
tk, with a annual production capacity of 24,000 units annually.
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Cooler Planet Solar System
Partnership agreement:
Dhaka-1209
Lalbag, Dhaka-1200.
Dhaka-1100
Dhaka-1209
Dhaka-1108
Mohmmed Ali
9, Bhagalpur Lane,
Hazaribag, Dhaka-1205
Dhaka-1206
3. Types of business:
4. Amount of investment:
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Cooler Planet Solar System
Each partner contributes 2cr. 2lakh. We are 7 partners that’s why our total
investment is 14cr. 71lakh.
As all partners contribute equal amount of money, profit & losses will be shared
equally and get 10% of net profit.
Each partner can draw 2lakh at a time. If a partner wants to with withdrawals.
This interest will be accumulated to our bank deposit.
7. A limit on the action each partner can take without consent of other:
If one partner takes any action without consent of other, it may break the
partnership. So, to take any action each partner has to get the consent of other
partners. A partner can’t do anything without the consent of other.
If a partner faces disputes to other partners. All the partners of the business
discuss about the matter. By discussing, we resolve. The disputes among
ourselves.
By agreement: Our firm may be dissolved any time with the consent of all the
partners of the firm. Partnership is created by the contract; it can also be
terminated by contract.
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Cooler Planet Solar System
Compulsory dissolution: Our firm is dissolved by the happening of any event
which makes the business of the firm unlawful.
By notice: Our firm may be dissolved by any partner giving notice in writing to all
other partners of our intention to dissolve the firm.
Dissolution by the Court: At the suit of partner, the court may dissolve a firm if
one of the partners becomes unsound mind or permanent incapacity due to
illness.
10. A process for expelling partners: If any partner takes bribe from a person or an
organization, he will be expelled from the partnership or if a partner gives any
secret information to the competitors or other, he will be expelled.
i. Design, implement, and facilitate annual marketing plan for the firm.
ii. Support and facilitate development and implementation of section
business/marketing plans.
iii. Translating business unit objectives and strategies to develop brand
portfolio objectives, strategies and plans to facilitate business unit growth.
iv. Developing marketing strategy, based on knowledge of establishment policy,
nature of market, copyright and royalty requirements, and cost and markup
factors.
v. Plan and administer the company’s Marketing Operations budget;
vi. Negotiates with media agents to secure agreements for translation of materials
into other media.
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Cooler Planet Solar System
vii. Edits materials according to specific market or customer requirements.
viii. Develop promotional materials including marketing collateral and print copies
ix. Oversee business development activities
x. Offer coaching for prospective client meetings, presentations, etc.
xi. Work with regional offices on designing and implementing prospecting and
client contact systems.
xii. Oversee corporate communications activities
.
i. Responsible for achieving zonal as well as total sales target of the company.
ii. Developing strategy, tactics, sales plans and profit targets.
iii. Delivering sales by developing relationships with retail partners.
iv. Identifying and reporting on business opportunities in target markets
v. Acting as an ambassador and role model for the business
vi. Taking responsibility for profit and loss
vii. Increasing market share in existing markets and maximize new business
development opportunities.
viii. Achieving targets for revenue, profitability and sales growth.
ix. Provide direction towards achieving revenue target of the company.
As mentioned previously each category of business will have differing regulation. The
regulations which will affect our venture in our district are:
• Business registration
• Licensing requirements
• Sales tax
• Income tax
• Labor legislation
The protection of customers is also ensured mainly by legislation from the central
and ministries of consumer and commerce affairs. The laws cover employees and
consumers headline of credit.
100% equity finance. And the figure is 14 crore, 71 lakh taka. All partners contribute
equally.
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Cooler Planet Solar System
Product & services:
We offer different range & different types of product. Our SOLAR PRODUCTS FOR
RURAL LIFE DEVELOPMENT are showed below.
SL NO: 1
System Description:
Model: SHLS –1
1 1x25 Wp PV Module.
2 1x12V, 47AH @ 100HR Positive Deep cycle Solar Battery
3 1x10A, 12V Charge Controller
4 2x7W FTL Lamps
5 Mounting Structure
6 Accessories.
Operating Load:
SL NO: 2
System Description:
Model: SHLS –2
1 1x30 Wp PV Module.
2 1x12V, 71AH @ 100HR Positive Deep cycle Solar Battery
3 1x10A, 12V Charge Controller
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Cooler Planet Solar System
4 2x7W FTL Lamps
5 Mounting Structure
6 Accessories
Operating Load:
SL NO: 3
System Description:
Model: SHLS –3
1 1x40 Wp PV Module.
2 1x12V,100AH@100HR Positive Deep cycle Solar Battery,
3 1x10A, 12V Charge Controller
4 3x7W FTL Lamps
5 Mounting Structure
6 Accessories.
Operating Load:
1 3x7W, FTL Lamps/2x7W FTL Lamps &1x14”/17” B&W TV/1x7W FTL Lamps, 1x15W DC Fan
Operating hours: 4 Hrs/Day
SL NO: 4
System Description:
Model: SHLS –4
1 1x50 Wp PV Module.
2 1x12V, 100AH@100HR Positive Tubular
3 Plate Solar Battery
4 1x10A,12V Charge Controller
5 4x7W FTL Lamps
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6 Mounting Structure
7 Accessories.
Operating Load:
1 4x7W Lamps & 1x14”/17” B&W TV or 2x7W FTL Lamps & 1x15W,DC Fan
SL NO: 5
System Description:
Model: SHLS –5
1 1x75 Wp PV Module.
2 1x12V,130AH @10HR Positive Tubular Plate Solar Battery
3 1x10A, 12V Charge Controller
4 5x7W FTL Lamp
5 Mounting Structure
6 Accessories.
Operating Load:
SL NO: 6
1 1x75 Wp PV Module.
2 1x12V,130AH@10HR Positive Tubular Plate Solar Battery
3 1x10A,12V Charge Controller
4 6x7W FTL Lamps
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Cooler Planet Solar System
5 Mounting Structure
6 Accessories.
Operating Load:
We also sell:
During the day, this light re-charges its internal battery, so that after nightfall that
energy can be put to use to light up your garden, porch, or pathway. Light sensing
technology will automatically turn these lights on when it gets dark and then off when
it gets light out again. Under strong sunlight, it needs to charge for 6-8 hours so that
it can operate for another 6-8 hours at night time. It has amorphous panel on top of
the light with 2 pcs. Ni-Cad high capacity rechargeable battery storage.
SOLAR FAN_DQ-928
This is solar powered fan. Including 1 piece of 5 watt poly-crystalline solar panel, 1
piece of lantern, and alarm clock attached with built-in 6V/4.5Ah rechargeable battery
and LED light source. The solar panel transforms sun light into DC electricity, and
recharges the battery. The battery can also be charged using the normal AC power.
This makes it a very convenient product both at home or for a small retailer.
We will add some other product after five year in our list. They are solar mobile
charger, solar hijack light, solar security system, solar ac, solar mosquito killer, solar
torch, solar fm radio, etc.
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Cooler Planet Solar System
SOLAR FAN_DQ-1298A
This is solar powered fan. This makes it a very convenient product both at home or
for a small retailer. This system can be charged both by solar and AC power.
Operating hours is 4 if it is fully charged.
Market Analysis:
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Market Area:
We will start our operation all over the Bangladesh. For this purpose we will divide
the whole Bangladesh into six division.
CUSTOMER ANLYSIS:
COOLER PLANET Solar energy (pvt.) ltd .is set to assemble solar panels to grab the
domestic market for solar home systems that are on an upward curve on the back of
the government policy support to help off-grid people get electricity.
Transforming the lives of people and lighting up different corners of the country,
COOLER PLANET Solar energy (pvt.) ltd. will provide Solar Energy solutions for
households, agriculture, healthcare, education, telecommunication, rural streets and
marketplaces, as well as government and private institutions.
Since 2003 the use of solar home systems has been increasing fast in the off-grid
areas of rural Bangladesh backed by over a dozen of NGOs that enjoy refinance
facility from state-run Infrastructure Development Company Ltd (IDCOL), which
promotes renewable energy development.
Now the number of solar home systems (SHSs) stands at around 325,000, up over
40 percent from 230,000 a year ago.
The company, which will be a market share of about 40 percent in SHS, said the
plant will assemble panels having a total yearly capacity of 5 megawatts.
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COMPETITORS ANALYSIS:
Every business has to face challenges from its competitor. There are 3 major
competitor in Bangladesh for our product. They are
2. Solarpac Limited.
Rahimafrooz Renewable Energy Ltd is set to assemble solar panels to grab the
domestic market for solar home systems that are on an upward curve on the back of
the government policy support to help off-grid people get electricity.
They have taken initiatives to establish a solar panel assembling plant with an
investment of Tk. 34 crore by June 2010, as the market for solar systems is widening
fast. A concern of Tk. 1,500-crore-Rahimafrooz Group, the company has been
engaged in distributing solar systems for the last few years. They have a huge
popularity in the market, and they have a large no. of experienced work force for the
sector. They are our main competitor in this sector. Their product is also similar to
us. But they charge a little higher rate than to us. And they did not have full credit
facility. There contract address is:
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a
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i
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a
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r
o
o
z
R
e
n
e
w
a
b
l
e
E
n
e
r
g
y
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t
d
.
(
R
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Cooler Planet Solar System
R
E
)
Address:1A Gulshan Avenue, Dhaka 1212. Bangladesh
Website: www.rahimafrooz.com
E-mail: raco rahimafrooz.com
Solarpac Limited
Solarpac is another major competitor of our product, they have a huge variety of
product. They did not involve in production. They direct import the product from
different places. So, their price range is also very high. Their distribution channel is
not so strong. SOLARPAC is one of the business houses specialized in importing
various kinds of solar based consumer products like solar fan, solar rechargeable
light, solar mobile charger, solar garden light, emergency solar system, solar panel,
and other solar products. To sell products of quality, to keep good credit standing, to
provide high grade service are the important objectives. By keeping these objectives
in mind, SOLARPAC has started its operation by importing solar based consumer
products and distributes to the wholesale and retail trade. We also sell the products
directly to end-consumers since we are relatively in a new business. SOLARPAC has
done extensive research on both the consumer demands for energy, and supplier
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Cooler Planet Solar System
side of solutions for those needs. Among others, They will provide the following
Products and Services:
SOLARPAC
277, Shahid Janani Jahanara Imam Sarani (Elephant Road), Dhaka 1205.
Bangladesh
Office : +88 02 9676234 Fax : +88 02 8612150 Mobile: +880 1715662546 and +880
1819247456, Mobile : (US) 0121-562-5440559
The name of another competitor in the sector is Greencon Energy Conversion Ltd.
They have a few nuber of product. There product are Data acquisition and Industrial
Automation System, Power supply system, Inverter, Battery, Battery Charger, Solar
charge controller, IPS, Digital Taxi Fare Meter (BRTA approved) etc. the company
started their business on 4th july,2010. They charge almost double price than to us.
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They engaged with all types of renewable energy product. So they could not
concentrate on the market of solar product. There address is
Dhaka-1229
MARKETING STRATEGY
The business will provide quality and superior service at a fair price to the customers
on time. Promotional measures therefore will be quality recreational activities
availability at the right place and time.
a) Product strategy:
In response to the customers’ needs the business shall strive to lead with
innovations both in product design and services which are unequalled in this specific
market and industry.
b) Pricing strategy
The business will have a mark-up policy of 20%-30% which will be affordable by the
target market. The market place dictates our pricing and the approval of loans for
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Cooler Planet Solar System
customers is a proof that our pricing structure is acceptable in the market. It means a
fair price lead by demand and supply.
c) Promotion strategy
The business will be engaged in direct marketing. The products will be market by
means of word of mouth and house visits. The owner plans to mount a
demonstration model on his four wheel drive vehicle for promotion purposes.
d) Distribution strategy
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Logo …
Slogan …
Market Information:
Industry Information:
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Goal : We want to achieve 40% market share.
Major segments are basically are those people who is totally detached from
electricity and those areas where the demands is higher then the others areas. The
strategy of segmentation allows us to avoid head on competition in the market place
by differentiating. Market segmentation is the first step in a marketing strategy. After
segmenting the market into homogenous cluster, we must select one or more
segment to target. To accomplish this, we must decide on a specific marketing mix.
Our target markets are as follow:
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3) Psychographic Segmentation: We have selected economy minded people.
Bangladesh is developing country and maximum numbers of people are
middle class. So market size is big.
Location:
Cost Effectiveness:
The cost of land and production should be low. We enjoy low cost labor facility here.
The cost of land in chandina is comparatively low.
Transportation:
The communication system is another issue. Product can easily transported from the
industry to customer place.
Pricing:
For our company’s product we set the market penetration price mean we set a low
initial price in order to penetrate the market quickly and deeply to attract a large
number of buyers and win a number of share in market. We set low initial price for
three reasons.
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Cooler Planet Solar System
Price is very sensitive issue to our customer. Slightly changed price can create a
large impact on our business. For setting price we have considered the following
issue
• We have conducted a survey and have found the price which is the most
desirable to our customer .Then we have selected that price.
• We have collected the information of our competitor’s price and our price is
lower than the competitor’s.
1
Systems with other load requirements can be provided on request.
Batteries are Solar Deep Cycle Tubular plate batteries manufactured by cooler
planet Batteries Limited, Bangladesh, an ISO 9002 certified company. These
batteries are having 8 to 10 years service life. Mentioned batteries have
already been field tested in Bangladesh for solar applications for 5 years
without incurring any design or workmanship defects.
Charge controllers are made locally with high quality electronics and designed
to control the charge level of battery efficiently. These charge controllers have
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Cooler Planet Solar System
been tested in Bangladesh for Solar applications for more than 5 years. These
charge controllers have been successfully certified from BUET.
The systems consist of high quality fluorescent lights made locally and design
has been proved to work with utmost efficiency. These fluorescent lights have
been successfully certified from BUET.
Cables are of high quality flexible twin core an ISO 9000 certified product.
Systems include galvanized mounting structure for solar panel specially made
to withstand against wind speed of 200 km/h.
Features:
1 High performance
2 Maximum reliability and minimum maintenance
3 Resistant to water, abrasion and hail impact
4 Light weight anodized aluminium frame with silicon edge sealant around the
laminate
Components:
1 Series connected Monocrystalline Silicon Solar Cells
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2 Toughened High Transmission Glass
3 Ethyl Vinyl Acetate (EVA) Encapsultant
4 Anodized Aluminium Frame
5 Silicone Frame Seal
6 Polyester/Tedlar trilaminate back surface
Junction Box:
1 Hinged weather-proof lid
2 Captive screws
3 Three cable gland entry points
4 One cable gland (Standard)
Applications:
1 Solar lanterns, Domestic lighting, Street lighting
2 Domestic power, Water pumping, Medical refrigeration
3 Rural electrification, Telecommunications, Telemetry
4 Navigational aids, Offshore platforms, Railway Signaling
5 Cathodic protection, Obstruction lighting
6 Grid connect power plants
1. Price:
2. Delivery from:
3. Validity:
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Cooler Planet Solar System
1 The price offered is valid for 60 Days.
4. Mode of Payment:
1 50 % payment along with the work order and 50% after installation of the
systems.
2 This will vary for the customer who will buy on credit.
5. Installation:
1 Installation done by the technician of Cooler planet Solar Energy (pvt.) ltd.
The system is guaranteed for one year against any manufacturing defects except
tube light. The warranties of the components are given below:
If there is any operating problem during warranty period, our technician goes to the
place for solving problem. If the product is unstable we will replace it with new ones.
Generally we packaging the product according to the customer needs.
Place Strategy:
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Cooler Planet Solar System
Although our main goal is to electrified the rural area of Bangladesh. And our target
customer is scattered all over the Bangladesh. So we are starting a wide range of
business, setup a divisional branch in every division, to control and supply that
division requirement, with direct supervision of our managing director. We planned to
setup our industry at Savar. And our main head office will setup in Kawran Bazar.
Promotional Strategy
This is the most important part of marketing a product. The customer knows a
product by Promotion. So if Promotions have a lacking the product will not get the
market. There is various ways of doing Promotion. As my product is new and novelty,
I will go for certain communication, and those are as follows:
Our target is to promote our product by achieving each step. First of all we are trying
to get the awareness in the customer mind. Then we provide the usefulness and the
advantage of this product. We associated this product with the people through
different event and sponsorship. I think it will make different my product with others.
Purchase
Conviction
Preference
Liking
Knowledge
Awareness 39
Cooler Planet Solar System
Sales Promotion Activities
Sales promotion objectives vary widely. Sellers may use consumer promotions to
increases short-term sale or to help build long term market share. Sales promotions
will use together with advertising or personal selling. Consumer promotions must
usually be advertised a can add excitement and pulling power to ads sales force
promotions support the company’s personal selling process. In the below mention
the ingredient of sales promotion for coming year.
o Samples
A small amount of a product will offer to consumers for trial when launch the product
rather they used advertising specialty tool.
o Price pack
Reduce the price that will mark by the producer directly on the label or package.
Cooler planet will change its product prices according to the season. Summer will
supposed to be a good season for our product in Bangladesh. So in winter we will
reduce its prices to maintain our sales and profit.
We will give allowance only those field workers who participate in advertising and
other sales support program.
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Stage in Product Life Cycle
The Market of Solar energy system is not well established in Bangladesh, But we
have chance to create a huge market. The demand of electricity will increase day by
day, and other available resources are decreasing at a good rate. So we have a
great opportunity to increase our market, in future. And we expected that we will run
at least 70 years. Although we are in introduction stage in life cycle, we hope we will
continue for growth stage, within the end of this year.
SWOT Analysis
Strength
Systems are modular, proven technology with low operation and maintenance.
Huge Capital budget for financial support and full equity finance.
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Cooler Planet Solar System
Weakness
Opportunity
Qualified consultants (e.g. Cradle Investments & Technology ltd) are available
and have expressed interest in monitoring and evaluation of business.
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Cooler Planet Solar System
Mines & Energy (Rural people to obtain Solar Home Systems).
The sound political, commercial & social setting of our country has and
instilled a confidence in suppliers, investors, lenders and insurers.
Other Solar Technicians in the area of operation share their clients with our
Business. This happens only when such a client is more in our reach distance
wise.
Threat
Batteries can contain hazardous material and a means for careful recycling or
disposal should be included in the long-term plan & funding scenario.
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Cooler Planet Solar System
ORGANOGRAM: Total No. of Employee = 88 persons.
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Cooler Planet Solar System
SALARY STRUCTURE
Customer Service Department
Marketing Department
Sales Department
Finance Department
HR Department
Production Department
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Cooler Planet Solar System
Yearly Cost for Salary, Bonus & pension Fund
WORK POLICY
(1) Work Schedule:
Yearly 2 bonuses will be paid during the time of Eid festivals. And the amount
will be 50% of the actual salary.
If any employee need to work after the schedule time, he/she will get the over
time payment. And the extra amount received for overtime is double than his
normal work hour salary. If an employee’s daily salary is 100 tk., s/he will get
Tk.25/hour, as overtime payment.
Full time employee: salary will be paid on, 7th day of the month.
Company will pay 50% of the actual salary every month, to the pension fund
for each permanent employee. Pension will be given to those employees, who
work more than 10 years in the organization and to those employees of the
organization, who are disabled to work, due to some unwanted reason. The
amount will be paid after 2 months, from the last day of work.
Every employee of the organization will get 20 days/ year, for vacation. And
every Friday will be given as weekly holiday. The company will also remain
close on national holidays.
The Market of Solar energy system is not well established in Bangladesh, But we
have chance to create a huge market. The demand of electricity will increase day by
day, and other available resources are decreasing at a good rate. So we have a
great opportunity to increase our market, in future. And we expected that we will run
at least 70 years. Although we are in introduction stage in life cycle, we hope we will
continue for growth stage, within the end of this year.
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Cooler Planet Solar System
To become the most reputed brand name
in the solar energy industry of the country
committed to adding value to all
stakeholders and community.
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Cooler Planet Solar System
Critical Risk Analysis of Cooler Planet
Marketability Risk
Although energy crisis has become a front burner issue in the context of Bangladesh
economy and rural development; the target customer of the product are mostly
unaware of solar energy. Therefore, despite huge energy demand in the country, at
initial stage, marketing the product and tapping the market rightly is critical to the
success of this business.
Mitigates:
The company is undertaking huge marketing and promotional activities to tap the
rural market of the country. To build awareness, the company has employed
counselors who will travel door to door in the rural area of the country to inform
people of the benefits of solar power. Nevertheless, TV promotions, radio
advertisings, flyers are being deployed to drive people towards solar power. Besides
marketability study has been conducted by a group of college students in different
regions of the country which reveals that the rural people have been longing for such
a product to bring light in their life.
Operational Risk
Solar equipments will be installed by the technicians of the company. Although they
will be well trained by specialists, mostly the technicians do not have previous
experience of installing solar equipments. In case of improper installation there is
chances the target customer will not get the benefits properly from the solar units and
the units may become damaged easily. Since the company is providing full fledged
guarantee of the product; damaging of large number of products may lead to huge
financial loss of the business.
Mitigates:
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Cooler Planet Solar System
Management Risk
Mitigates:
The entrepreneurs of the business are seven business graduates (BBA) passed from
the country’s reputed university having sound family background and financial
support. All of them are well capable of maintaining liaison with different authorities
and organizations. Chances of conflict of interest are expected to be remote
considering their relationships for last 04 years in the University. Besides, the
company will be run by experienced professionals as such Management risk is
assumed to be minimal.
All the equipments of the solar unit will be imported from abroad to ensure quality of
the product. Since import will incur foreign exchange against Bangladeshi taka,
devaluation of taka will lead to increased manufacturing cost and therefore, the
business will run the risk of exchange rate risk.
Mitigates:
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Cooler Planet Solar System
Mitigates: Since last five years, Government has been encouraging entrepreneurs to
focus in the renewable energy sector. Banks are also offering concessionary pricing
while financing the sector. Although there are three other competitors in the market,
the market is still in its beginning stage and is expected to grow in coming days.
Since cooler planet solar unit will only be assembled in Bangladesh rather
manufacturing, any technological advancement can easily be absorbed in the
Bangladesh market as long as demand for power prevails in Bangladesh.
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Cooler Planet Solar System
Sales Forecasting
Year 2011
Sales Forecasting
Year 2012
Sales Forecasting
Year 2013
Sales Forecasting
Year 2014
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928 0
4. FAN_DQ- 3,500 65 70 40 40 70 95 11 90 55 60 45 65 805 28,17,500
1298 0
Tot 12,01,43,000
al
Sales Forecasting
Year 2015
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COOLER PLANET SOLAR ENERGY (PVT.) LIMITED
Income Statement
59
Cooler Planet Solar System
COOLER PLANET SOLAR ENERGY (PVT.) LIMITED
Income Statement
Less: Expenses
60
Cooler Planet Solar System
COOLER PLANET SOLAR ENERGY (PVT.) LIMITED
Income Statement
Less: Expenses
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COOLER PLANET SOLAR ENERGY (PVT.) LIMITED
Income Statement
Less: Expenses
62
Cooler Planet Solar System
Dividends(70% of net income) 5,39,32,585
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Earnings before income Taxes 4,82,20,000
(-)Tax (15%) 72,33,000
Net Income 4,09,87,000
Dividends(70% of net income) 2,86,90,900
Retained Earnings (30% of net income) 1,22,96,100
Current Liabilities
Accounts Payable 1,05,000
Cash 4,53,42,000
Fixed Assets
Land 70,00,000
Buildings 90,00,000
Less: Accumulated Depreciation (5%) 4,50,000
Building(net) 85,50,000
Pick up Van 1,00,00,000
Equipment 1,20,00,000
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Cooler Planet Solar System
Equipment (net) 1,14,00,000
Furniture 1,00,00,000
Less: Accumulated Depreciation (5%) 5,00,000
Furniture (net) 95,00,000
Current Liabilities
Accounts Payable 1,10,000
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Cooler Planet Solar System
Total Current Liabilities 59,00,000
Cash 7,70,03,000
Fixed Assets
Land 70,00,000
Buildings 85,50,000
Building(net) 81,23,500
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Equipment 1,14,00,000
Furniture 95,00,000
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Current Liabilities
Accounts Payable 80,000
Cash 10,39,88,000
Fixed Assets
Land 70,00,000
Buildings 81,23,500
Less: Accumulated Depreciation (5%) 4,06,175
Building(net) 77,17,325
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Pick up Van 1,00,00,000
Equipment 1,08,30,000
Furniture 90,00,000
Less: Accumulated Depreciation (5%) 5,00,000
Furniture (net) 85,00,000
Total Fixed Assets 4,35,05,825
Total Assets 17,09,02,470
Balance Sheet
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Particulars Amount Amount
LIABILITIES & SHARE HOLDERS’S EQUITY
Current Liabilities
Accounts Payable 57,67,119
Cash 14,73,72,000
Fixed Assets
Land 70,00,000
Buildings 77,17,325
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Less: Accumulated Depreciation (5%) 3,85,866
Building(net) 73,31,459
Pick up Van 1,00,00,000
Equipment 1,02,88,500
Furniture 85,00,000
Less: Accumulated Depreciation (5%) 5,00,000
Furniture (net) 80,00,000
Total Fixed Assets 4,21,05,534
Total Assets 18,95,77,534
Current Liabilities
Accounts Payable 11,22,157
Cash 12,69,21,000
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Total Current Assets 17,70,01,000
Fixed Assets
Land 70,00,000
Buildings 73,31,459
Less: Accumulated Depreciation (5%) 3,66,573
Building(net) 69,64,886
Pick up Van 1,00,00,000
Equipment 97,74,075
Furniture 80,00,000
Less: Accumulated Depreciation (5%) 5,00,000
Furniture (net) 75,00,000
Total Fixed Assets 4,07,50,257
Total Assets 16,77,51,257
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COOLER PLANET SOLAR ENERGY (PVT.) LIMITED
Cash Flow Statement
Particulars Cash
For the Transaction
Year, 2011 Amount (in’000)
Jan. Feb Mar. Apr. May June July Aug. Sep. Oct. Nov. Dec.
.
Cash Inflows
Cash Sales 20,15 35,3 47,95 48,95 53,30 59,95 81,35 66,55 62,85 37,75 33,65 51,65
5
Earnings from Interest 0 1,00 10,00 15,00 20,00 12,00 15,00 20,00 11,00 13,00 23,00 14,00
0 0 0 0 0 0 0 0 0 0
Total Cash In 20,15 35, 48,05 49,10 53,50 60,07 81,50 66,75 62,96 37,88 33,88 51,79
36
Cash Disbursement
Rent 1,70 1,70 1,70 1,70 1,70 1,70 1,70 1,70 1,70 1,70 1,70 1,70
Salaries & wages 5,00 5,00 5,00 5,00 5,00 5,00 5,00 5,00 5,00 5,00 5,00 5,00
Legal & Audit Fees 10,00 0 0 0 0 0 0 0 0 0 0 0
Utilities (heat, light, 1,00 1,00 1,00 1,00 1,00 1,00 1,00 1,00 1,00 1,00 1,00 1,00
water)
Insurance 10,00 0 0 0 0 0 0 0 0 0 0 0
Other Cash Expenses 2,00 2,50 1,80 1,60 1,40 1,90 1,30 1,50 1,70 2,10 1,50 1,80
Payments On purchase 1,00,00 0 0 0 0 0 0 0 0 0 0 0
of Fixed assets
Income Tax 0 0 0 0 0 0 0 0 0 0 0 35,17
Cash Dividend 0 0 0 0 0 0 0 0 0 0 0 1,39,5
0
Total Cash out 1,29,70 10, 9,50 9,30 9,10 9,60 9,00 9,20 9,40 9,80 9,20 1,84,
20 17
Reconciliation of Cash Flow
Opening Cash Balance 2,60,60 1,51 1,76,2 2,14,7 2,54,5 2,98,9 3,49,4 4,21,9 4,79,4 5,33,0 5,61,1 5,85,8
,05 1 6 6 6 3 3 8 4 2 0
Add: Cash In 20,15 35,3 48,05 49,10 53,50 60,07 81,50 66,75 62,96 37,88 33,88 7551,79
6 Cooler Planet Solar System
Deduct: Cash Out 1,29,70 10,2 9,50 9,30 9,10 9,60 9,00 9,20 9,40 9,80 9,20 1,84,1
0 7
Closing Cash Balances 1,51,05 1,76 2,14,7 2,54,5 2,98,9 3,49,4 4,21,9 4,79,4 5,33,0 5,61,1 5,85,8 4,53,4
,21 6 6 6 3 3 8 4 2 0 2
COOLER PLANET SOLAR ENERGY (PVT.) LIMITED
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Cooler Planet Solar System
For the Year, 2012
Ratio Analysis:
COOLER PLANET SOLAR ENERGY (PVT.) LIMITED
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For the Year , 2011
EXPLANATION:
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Cooler Planet Solar System
1. Current ratio: In 2011 our total current assets is 110250225 and our total current liabilities is 3621750. The
current ratio is 30.44.
2. Acid-test Ratio: In 2011 acid-test ratio is 18.24.
3. Debt-to-equity Ratio: In 2011 our total debt is 3621750 and total equity 153078475. The debt-to-equity ratio is
0.023.
4. Inventory Ratio: In 2011 our cost of goods sold is 20000000 and inventory is 1200000. The inventory ratio is 16.67.
5. Average Collection Period: in 2011 our average Collection Period is 126.09 days.
6. Return on Total Assets: In 2011 our operating income is 19928250 and total assets are 156700225. Return on
Total Assets are 0.13.
7. Return on equity: In 2011 our net income is 19928250 and share holders equity is 156700225. Return on equity is
0.13.
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COOLER PLANET SOLAR ENERGY (PVT.) LIMITED
For the Year , 2012
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EXPLANATION:
1. Current ratio: In 2012 our total current assets is 123789500 and our total current liabilities is 5900000.
The current ratio is 20.98. In 2011 the current ratio was 30.44.So the current ratio is decreases in2012.
2. Acid-test Ratio: In 2011 acid-test ratio was 18.24. In 2012 acid-test ratio is 18.11.
3. Debt-to-equity Ratio: In 2012 our total debt is 5900000 and total equity 156943000. The debt-to-equity ratio is
0.034. : In 2011 debt-to-equity ratio is 0.023.So
4. Inventory Ratio: In 2012 our cost of goods sold is 1,10,00,000 and inventory is 6400000 . The inventory
ratio is 1.72. The inventory ratio was 16.67 in 2011.So the inventory ratio is decreases in 2012.
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COOLER PLANET SOLAR ENERGY (PVT.) LIMITED
For the Year , 2013
1. Current ratio: In 2012 our total current assets was 123789500 and our total current liabilities was 5900000.
The current ratio is 20.98. : In 2013 our total current assets is 12,73,96,645 and total
Current liabilities is 88, 66,100. . The current ratio is 14.37.So the current ratio is decreases.
2. Acid-test Ratio: In 2012 acid-test ratio was 18.11. In 2012 acid-test ratio is 13.06.
3. Debt-to-equity Ratio: In 2012 our total debt was 5900000 and total equity was156943000. The debt-to-equity
ratio was 0.034. In 2013 debt-to-equity ratio is 0.054.So In 2013 debt-to-equity ratio is increases.
4. Inventory Ratio: In 2012 our cost of goods sold was 1,10,00,000 and inventory was 6400000 . The
inventory ratio was 1.72. The inventory ratio is0.53 in 2013.So the inventory ratio is decreases in 2013.
5. Average Collection Period: in 2012 our average Collection Period was days and in 2013 our average
Collection Period is 89.59 days.
6. Return on Total Assets: In 2012 our operating income is 3,28,10,000 and total assets are16,87,43,000. Return
on Total Assets is 0.19.In 2013 Return on Total Assets are 0.29.So return on assets in 2013 is increases.
7. Return on equity: In 2012 our net income was3, 28, 10,000 and share holders’ equity was 16,87,43,000.
Return on equity was 0.19. In 2013 Return on equity are 0.33.
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COOLER PLANET SOLAR ENERGY (PVT.) LIMITED
For the Year , 2014
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EXPLANATION:
1. Current ratio: In 2013 our total current assets was12,73,96,645 and our total current liabilities was 88, 66,100.
The current ratio is 20.98. : In 2014 our total current assets is 147472000 and total
Current liabilities is 19163569 . The current ratio is 7.61.So the current ratio is decreases.
2. Acid-test Ratio: In 2013 acid-test ratio was13.06.. In 2014 acid-test ratio is 7.61
3. Debt-to-equity Ratio: In 2013 our total debt was 5900000 and total equity was156943000. The debt-to-equity
ratio was0.054. In 2014 debt-to-equity ratio is 0.11.So In 2014 debt-to-equity ratio is decreases.
4. Inventory Ratio: The inventory ratio was o.53 in 2013. The inventory ratio is533.33 in 2014.So the inventory ratio
is increases in 2014.
5. Average Collection Period: in 2013 our average Collection Period was 89.59 days and in 2014 our average
Collection Period is 26.90days.
6. Return on Total Assets : Return on Total Assets are0.29.In 2013 Return on Total Assets are0.41.So return on
assets in 2013 is increases.
7. Return on equity: Return on equity was 0.33 in 2013. In 2014 Return on equity are 0.41.
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COOLER PLANET SOLAR ENERGY (PVT.) LIMITED
For the Year , 2015
1. Current ratio: In 2014 our total current assets was12,73,96,645 and our total current liabilities was 88, 66,100.
The current ratio is 21.18. : In 2015 our total current assets is 147472000 and total
Current liabilities are 19163569 . The current ratio is 7.61.So the current ratio is decreases.
2. Acid-test Ratio: In 2014 acid-test ratio was13.06.. In 2015 acid-test ratio is 21.18
3. Debt-to-equity Ratio: In 2015 our total debt was 5900000 and total equity was156943000. The debt-to-equity
ratio was0.054. In 2014 debt-to-equity ratio is 0.11.So In 2014 debt-to-equity ratio is decreases.
4. Inventory Ratio: The inventory ratio was 1200 in 2015. The inventory ratio is533.33 in 2014.So the inventory
ratio is increases in 2014.
5. Average Collection Period: in 2015 our average Collection Period was 0.333 days and in 2014 our average
Collection Period is 26days.
6. Return on Total Assets : Return on Total Assets are0.244 In 2015 Return on Total Assets are0.41.So return on
assets in 2014 is increases.
7. Return on equity: Return on equity was 0.244 in 2015. In 2014 Return on equity are 0.41.
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Cooler Planet Solar System
Concluding remarks
Wide target area covering all the six divisions of the country.
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_____
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