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BUSINESS PLAN FOR

C O O LER PLANET
SOLAR ENERGY (PVT.)
LIMITED
LETTER OF TRANSMITTAL

August 04, 2010


To
Respectable teacher
Jesmin Sultana
Department of Business Administration,
The University of Asia Pacific

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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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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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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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 Sector

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.

Worldwide photovoltaic installations increased by 7.3 GW in 2009, up from 6,080


MW installed during the previous year. In 1985, annual solar installation demand was
only 21 MW. Cumulative solar energy production accounts for less than 0.01% of
total Global Primary Energy demand. Solar Energy demand has grown at about 30%
per annum over the past 15 years (hydrocarbon energy demand typically grows
between 0-2% per annum). The US market grew to 485 megawatts in 2009. Japan's
market is now the fourth largest market. Spain has been the largest market in 2008.
The "Feed-in Law" has led to Germany to become the largest market for installations
in the world in 2009. Solar buzz research confirms that the Asia Pacific, European
and United States all are projected to have strong growth over the next five years. In
megawatt terms, cell production in China and Taiwan reached 3,304 MW in 2008,
with Europe at 1,729 MW ahead of Japanese production at 1,172 MW in 2008. Solar
Energy (photovoltaic) prices have declined on average 4% per annum over the past
15 years. Progressive increase in conversion efficiencies and manufacturing
economies of scale are the underlying drivers. The Solarbuzz global price survey on
this site shows that prices have consistently declined for over the last two years. A
residential solar energy system typically costs about $8-10 per Watt. Where
government incentive programs exist, together with lower prices secured through
volume purchases, installed costs as low as $3-4 watt - or some 10-12 cents per
kilowatt hour can be achieved. Without incentive programs, solar energy costs (in an
average sunny climate) range between 22-40 cents/kWh for very large PV systems.
The earth receives more energy from the sun in just one hour than the world uses in
a whole year. Two billion people in the world have no access to electricity. For most
of them, solar photovoltaic’s would be their cheapest electricity source, but they
cannot afford it. Crystalline Silicon cell technology forms about 90% of solar cell
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Cooler Planet Solar System
demand. The balance comes from thin film technologies. Approximately 45% of the
cost of a silicon cell solar module is driven by the cost of the silicon wafer, a further
35% is driven by the materials required to assemble the solar module.

Electricity sector in Bangladesh

Bangladesh's energy infrastructure is quite small, insufficient and poorly managed.


The per capita energy consumption in Bangladesh is one of the lowest (136 KWH) in
the world. Noncommercial energy sources, such as wood, animal wastes, and crop
residues, are estimated to account for over half of the country's energy consumption.
Bangladesh has small reserves of oil and coal, but very large natural gas resources.
Commercial energy consumption is mostly natural gas (around 66%), followed by oil,
hydropower and coal.

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”.

Description of the Firm

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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Partnership agreement:

1. Name and address of the firm:

Cooler planet solar energy (pvt) Ltd.

43,Kazi Nazrul Islam Avenue,

Kawran Bazar, Dhaka

2. Name and address of the partners:

Shibly Qureshi Tamim

285/3, West Dhanmondi,

Dhaka-1209

Mashud Alam Rocky

27/A/7 Dhakeshawri Road,

Lalbag, Dhaka-1200.

Ahmed Ali Shojib

133, Bongshal Road,

Dhaka-1100

Iffat Ara Sharmin


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70/1 Dhanmondi,

Dhaka-1209

Umma Kulsum Lima

53, Najimuddin Road,

Dhaka-1108

Mohmmed Ali

9, Bhagalpur Lane,

Hazaribag, Dhaka-1205

Md. Mejbah Uddin Sujon

59/1/B Matikata Bazar, Cant.,

Dhaka-1206

3. Types of business:

Cooler planet is private limited organization. Our main motive is to make a


digital Bangladesh, with a motive to ensure electricity for all and be energy
efficient country.

4. Amount of investment:

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Each partner contributes 2cr. 2lakh. We are 7 partners that’s why our total
investment is 14cr. 71lakh.

5. Share of profit losses:

As all partners contribute equal amount of money, profit & losses will be shared
equally and get 10% of net profit.

6. How much each partner draws out:

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.

8. A method for resolving disputes:

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.

9. A process for dissolving partnership:

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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Compulsory dissolution: Our firm is dissolved by the happening of any event
which makes the business of the firm unlawful.

On the happening of certain contingencies: Our firm is dissolved by the death of


partner.

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.

Publish advertisement n newspaper, leaflet and billboard.

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.

11. Duties and responsibilities of partner & managing Director:

Their duties & responsibilities are as follows

Duties & Responsibilities of the Managing Director:

i. Setting the culture of the company


ii. Developing strategy and direction for the company in line with Board of
Directors perspective.
iii. Leading the executive/senior management of the company (including firing
and hiring) as the Chief Executive Officer.
iv. Managing Financial and Physical resources.
v. Overall planning & controlling functions of the company.
vi. Guiding the company towards the vision of the company.
vii. Taking decisions towards achieving goals of the company as set by the Board
of Directors.
viii. Setting objectives of each of the departments and delegating responsibilities
towards achieving organizational goals.
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ix. Reporting the Board of directors regarding the company’s performance time to
time and assuming changes of strategies and course of action in line with
Board’s view.

Duties & Responsibilities of the Head of Customer Service:

i. Responsible for the customer-service strategy of the company.


ii. Sets the agenda for how the company interacts with customers
iii. Guides the philosophy that the company employs to serve its customers.
iv. Incorporates the customers' needs with ongoing process-improvement projects
and shows how the improvements provide direct benefits to customers.
v. Developing system by which customers can provide feedback to the company.
vi. Responsible for managing the company's customer service centers throughout
a region and implements reward/recognition programs for the employees that
provide excellent customer service.
vii. Establishes measures to show how well or how poorly the company is
performing against the goals.
viii. Recruiting right people for the Customer service department.

Duties & Responsibilities of the Head of Marketing:

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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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
.

Duties & Responsibilities of the Head of Sales:

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.

Duties & Responsibilities of the Head of Production:

i. Coordinating people, resources, equipment and supplies to ensure that the


production process meets an organization's manufacturing goals.
ii. Overseeing the production process, drawing up production schedule.
iii. Ensure planned KPI’s of efficiency and performance are met or exceeded.
iv. Ensuring that the production is cost effective
v. Ensure implementation and evolution of safety procedure.
vi. Monitoring the production processes and adjusting schedules as needed.
vii. Monitoring product standards and implementing quality-control programs.
viii. Implement and drive continuous improvement activities through implementation
of change management process and best practices.
ix. Liaising among different departments, e.g. Suppliers, managers.
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x. Optimize resource utilization by implementation of an effective production
organization.
xi. Working with managers to implement the company's policies and goals.
xii. Ensuring that health and safety guidelines are followed.
xiii. Ensure coaching and development of resources to meet business’s objectives.
xiv. Reviewing the performance of subordinates.
xv. Coordinate, set up and implement standard operating procedure (SOP) for all
production operations.

Duties & Responsibilities of the Head of Finance:

i. Ensure that an appropriate financial policy framework is in place to guide


company’s financial decision-making and development particularly in relation to
reserves, expense and granting ratios and income streams.
ii. Ensure the appropriateness of the key assumptions included in company’s
strategic plans and annual budget proposals. Provide advice to senior
management colleagues on these matters
iii. Work closely with the Leadership Team as part of a mutually supportive senior
management team, advising them on the likely financial consequences of all
proposed courses of action.
iv. Maintain contact and liaise with bankers, pension advisors and auditors to
ensure the long term financial security and stability of the company.
v. Provide a high level of professionalism reflected in a sound budgetary policy
resulting in maximum granting to the field.
vi. Maintain records to meet external legal and tax requirements.
vii. Ensure financial and other reporting systems are maintained to the standards
required by the company.. external auditors and regulatory bodies
viii. Prepare annual budget and forecasts aligned to strategic plans and in
accordance with guidelines provided by the MD and Board of Directors.
ix. Provide full accounting services to other Directors and managers including
departmental financial analysis and exploring any potential problems with them
in order to make appropriate budgetary decisions.
x. Produce rolling cash flow forecasts, monitor cash position daily and ensure
creditors’ terms are met.
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xi. Evaluate the tax liability impact of contemplated courses of action, minimize the
tax burden and deal with tax authorities.
xii. Undertake such other financial analysis and reporting as requested by the MD &
CEO.
xiii. Manage and maintain the payroll system.

Duties & Responsibilities of the Head of HR:

i. Developing and implementing Human Resources strategies for identifying,


developing, engaging, deploying and retaining talented employees.
ii. Succession planning and performance management
iii. Managing Pay and reward.
iv. Managing organizational development and change.
v. Developing and communicating management advice and guidance to
ensure successful implementation of these strategies
vi. Maintaining and where appropriate drafting new HR policies and procedures
that support the business also ensuring that the company complies with
statutory requirements.
vii. Establishing and maintaining recruitment centre of excellence. Managing all
aspects of the recruitment process from manpower planning to
interviewing and induction; monitoring diversity and act on results.
viii. Leading on all relevant employee consultation including Union engagement in
conjunction with other executives and managers.
ix. Supporting Managers and Directors in setting learning and development
budgets; monitoring expenditure with timely interventions on budgets where
appropriate.
x. Providing regular reports to the Board and Management Team on performance
and measures for performance improvement.
xi. Ensuring effective management and administration of all employee records and
payroll data including budgets to Data Protection standards.
xii. Ensuring compliance with the Association’s policies and procedures on health
and safety, equality and diversity.
xiii. Leading the HR Team in delivering a high performance customer focused
service to achieve the Organization’s objectives.
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xiv. Motivating, managing performance and developing each team member to reach
their full potential.

Regulations which affect our Business:

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

• Checklist of legal requirements

• Goods public relation

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.

Current Financial Position:

100% equity finance. And the figure is 14 crore, 71 lakh taka. All partners contribute
equally.

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Product & services:

We offer different range & different types of product. Our SOLAR PRODUCTS FOR
RURAL LIFE DEVELOPMENT are showed below.

COOLER PLANET SOLAR HOME PACKAGES

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:

1 2x7W CFL Lamps & 1xMobile phone charger/Cassette player

Operating hours: 3 Hrs/Day

Price: Tk. 14,000.00 (Taka)

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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4 2x7W FTL Lamps
5 Mounting Structure
6 Accessories
Operating Load:

1 2x7W FTL Lamps and 1x DC 12" B&W TV

Operating hours: 3 Hrs/Day

Price: Tk. 18,000 (Taka)

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

Price: Tk. 20,000 (Taka)

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

Operating hours: 4 Hrs/Day

Price: Tk. 23,000 (Taka)

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:

1 5x7W Light (FTL) & 1x15 W, DC Fan

Operating hours: 4 Hrs/Day

Price: Tk. 38,000.00 (Taka)

SL NO: 6

System Description: Model: SHLS –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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5 Mounting Structure
6 Accessories.

Operating Load:

1 6x7W, FTL Light Or 4x7W FTL Lamp & 1x14”/17” B&W TV

Operating hours: 4 Hrs/Day

Price: Tk. 42,000.00 (Taka)

We also sell:

SOLAR GARDEN LIGHT:

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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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:

We want to achieve 40% market share.

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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 SHS market is increased because of the government of Bangladesh aim to


provide green energy solutions to majority of the country’s around 15 crore people
who have a little or no access to electricity through national grid.

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.

25
Cooler Planet Solar System
COMPETITORS ANALYSIS:

Every business has to face challenges from its competitor. There are 3 major
competitor in Bangladesh for our product. They are

1. Rahimafrooz Renewable Energy Ltd. (RRE)

2. Solarpac Limited.

3. Greencon Energy Conversion Ltd.

Rahimafrooz Renewable Energy Ltd. (RRE)

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:

26
Cooler Planet Solar System
a
h
i
m
a
f
r
o
o
z

R
e
n
e
w
a
b
l
e

E
n
e
r
g
y

L
t
d
.
(
R
27
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

28
Cooler Planet Solar System
side of solutions for those needs. Among others, They will provide the following
Products and Services:

Consultancy in Energy Sector Solar Power systems 10 watts ~ Megawatts

Solar Lanterns Solar Home Systems: 5 watts to Kilowatts

Solar Table and Ceiling Fans Solar Mobile Chargers

Solar Generators Inverters & Charge Controllers

Solar Irrigation (pump) Systems Solar Water Heater

Solar Street Light Solar Traffic Light

Their contract address is:

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

Greencon Energy Conversion Ltd.

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.

29
Cooler Planet Solar System
They engaged with all types of renewable energy product. So they could not
concentrate on the market of solar product. There address is

House : 21/E, Road-1, Nikunja-2,

Dhaka-1229

Phone : +880 2 8923477, +880 1746 257157,


+880 1918 626 826, +880 1552453423

Marketing Strategy for our product:

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.

The most important marketing strategies will be:

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

30
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

Products (panels) will be distributed by technicians to the site.

Category of the Product:

Product type: Renewable Energy Product

Name … Cooler Planet Solar Energy (Pvt.) Ltd.

31
Cooler Planet Solar System
Logo …

Slogan …

Market Information:

Target Group : Rural people with good monthly Income, those


who have electricity connection are also our
potential customer.

Buyer Consideration : Price, Service, Quality

Industry Information:

Competitors : Greencon, Solarpac,Rahim afrooz and other

32
Cooler Planet Solar System
Goal : We want to achieve 40% market share.

Strategy : Competitive price, packaging, credit facility


after sales service

Segmentation & Target Customer

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:

1) Geographic Segmentation: We have selected rural area. All of we know that


this type of people are huge number. If we able to reach this target group,
then we will be able to make more profit.

2) Demographic Segmentation: We have selected 25-50 years of age people.


This group is those person who earn at a sufficient level

33
Cooler Planet Solar System
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:

Location analysis is an important decision for any business. We have to consider


cost for analyzing location. For finding location, we have considered a suitable
location where customers are available for our business. The following things are
given preference.

We setup our industry at Chandina (near Meghna River), Comilla.

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 the new company at the introductory stage is especially challenging. We


introduce a new company no one dose not aware our company, so face the
challenges of setting price for the time.

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.

34
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.

• Our selected price covers our cost.

Price of our Product:

1. Solar Home System……………………… (14,000- 50,000) tk.


2. Garden Light…………………………………..15,000 tk.
3. Fan_DQ-928……………………………………3,000tk.
4. Fan_DQ-1298………………………………..4,000tk.
Note:

1
 Systems with other load requirements can be provided on request.

 Above-mentioned solar modules are of Single Crystalline high quality BP


modules,
 an ISO 9001 certified product.

 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
35
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.

 Other installation accessories are as per requirement.

Cooler Planet Solar Modules:

Capacity range and Quality


1
2 Exhaustive range – 1 watt to 80 watts
3 Manufactured to international specifications

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

36
Cooler Planet Solar System
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

Terms and Condition

1. Price:

1 The above prices are net. This price includes VAT.


2 Transportation charges during the installation would be born by the customer.

2. Delivery from:

1 From our Regional office.

3. Validity:

37
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.

6. Warranty, servicing & packaging:

The system is guaranteed for one year against any manufacturing defects except
tube light. The warranties of the components are given below:

Name of the components Warranty Expected Life

Solar Module 20 years 25-30 Years

Battery 5 years 8-10 Years

Charge Controller 2 years 4-5 years

DC Fluorescent Lamp circuit 2 years 4-5 years

Panel Structure 2 years 8 years

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:

38
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:

 Publicity/ Public Relation


 Print media (news paper)
 Radio
 Billboard & poster
 Event management
 Spoke person

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.

o Different Price in Different Seasons

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.

o Functional discount and Allowance

We will give allowance only those field workers who participate in advertising and
other sales support program.

40
Cooler Planet Solar System
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

 Well established customer base (potential for business to expand).

 The team has sufficient experience and skills to operate business.

 Owner is knowledgeable in business management

 Good customer relations.

 Systems are modular, proven technology with low operation and maintenance.

 Strong Distribution Network.

 Huge Capital budget for financial support and full equity finance.

41
Cooler Planet Solar System
Weakness

 Major customer segment is unware about the product.

 Financial capability of major customer group is very low.

 Information gaps exist. Updated information on technology and credit facilities


(Revolving Fund) is not readily available to all potential clients.

 Regular needs assessments are not done.

 Delays in process application process streamline cash flow.

 Systems have high capital & transaction cost

 Photovoltaic modules produce direct current (DC) electricity only: an inverter


must be added to the system to run alternating current (AC) devices.

Opportunity

 Increasing demand for the services.

 Few numbers of Competitors.

 Market is expandable, demand of the product increasing day by day.

 Qualified consultants (e.g. Cradle Investments & Technology ltd) are available
and have expressed interest in monitoring and evaluation of business.

 Credit facilities (Revolving Fund) in conjunction with UNDP & Min. of

42
Cooler Planet Solar System
Mines & Energy (Rural people to obtain Solar Home Systems).

 Sunlight is available in predictable & sufficient quantities.

 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

 Someone who is financially strong may enter the industry.

 Off-Peak Seasons (Rain) reduce cash flow.

 Batteries can contain hazardous material and a means for careful recycling or
disposal should be included in the long-term plan & funding scenario.

 Products are almost same.

43
Cooler Planet Solar System
ORGANOGRAM: Total No. of Employee = 88 persons.

44
Cooler Planet Solar System
SALARY STRUCTURE
Customer Service Department

No. Position Name Monthly salary No. of Total


Employee
1. Manager 10,000/- 2 20,000/-
2. Peon 3,000/- 1 3,000/-
Total 3 23,000/-

Marketing Department

No. Position Name Monthly salary No. of Total


Employee
1. Marketing 10,000/- 6 60,000/-
Manager
2. Zonal Manager 6,000/- 12 72,000/-
3. Peon 3,000/- 1 3,000/-
Total 19 1,35,000/-

Sales Department

No. Position Name Monthly salary No. of Total


Employee
1. Sales Manager 10,000/- 3 30,000/-
2. Sales Executive 5,000/- 6 30,000/-
3. Peon 3,000/- 1 3,000/-
Total 10 63,000/-

Finance Department

No. Position Name Monthly salary No. of Total


45
Cooler Planet Solar System
Employee
1. Finance 10,000/- 1 10,000/-
Manager
2. Senior 6,000/- 1 6,000/-
Accountant
3. Accountant 5,000/- 2 10,000/-
4. Cashier 4,000/- 2 8,000/-
5. Peon 3,000/- 1 3,000/-
Total 7 37,000/-

HR Department

No. Position Name Monthly salary No. of Total


Employee
1. Computer 4,000/- 1 4,000/-
Operator
2. Peon 3,000/- 1 3,000/-
Total 2 7,000/-

Production Department

No. Position Name Monthly No. of Total


salary Employee
1. Electric Engineer 15,000/- 2 30,000/-
2. Production Manager 10,000/- 2 20,000/-
3. Asst. Manager 7,000/- 2 14,000/-
4. Technician 5,000/- 4 20,000/-
5. Mechanical 5,000/- 4 20,000/-
Engineer(diploma)
6. Supervisor 4,500/- 4 18,000/-
7. Security Guard 3,000/- 6 18,000/-
8. Store in charge 3,000/- 2 6,000/-
9. Driver 3,000/- 4 12,000/-
10. Driver’s Assistant 2,000/- 4 8,000/-
11. Labor 3,000/- 12 36,000/-
12. Peon 3,000/- 1 3,000/-
Total 45 2,05,000/-

46
Cooler Planet Solar System
Yearly Cost for Salary, Bonus & pension Fund

Particulars Name of the Dept.


Yearly Producti Finan Sales HR Marketi Custom Total
on ce ng er
Service
Salary 24,60,00 4,44,0 7,56,00 84,000 16,20,0 2,76,00 56,40,0
(monthly 0 00 0 00 0 00
Salary*12)
Bonus 2,05,000 37,000 63,000 7,000 1,35,00 23,000 4,70,00
(monthly 0 0
salary*2*50
%)
Pension 12,30,00 2,22,0 3,78,00 42,000 8,10,00 1,38,00 28,20,0
Fund 0 00 0 0 0 00
(monthly
salary*12*5
0%)
Total Cost 38,95,00 7,03,0 11,97,0 1,33,0 25,65,0 4,37,00 89,30,0
0 00 00 00 00 0 00

WORK POLICY
(1) Work Schedule:

Work hour: 9:00 A.M. - 5:00 P.M.

Launch Break: 1:30 P.M. – 2:00 P.M.

(2) Salary & Wages:

i) Salary will be paid according to the salary structure for permanent


employee.
47
Cooler Planet Solar System
ii) For part time employee, payment rate will be Tk. 80.

(3) Bonus & Incentives:

Yearly 2 bonuses will be paid during the time of Eid festivals. And the amount
will be 50% of the actual salary.

(4) Overtime Payment:

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.

(5) Payment Schedule:

Full time employee: salary will be paid on, 7th day of the month.

Part time Employee: Payment will be given after competitions of work.

(6) Promotion & Termination:

Both promotion and termination will be decided by the consent of board of


director.

(7) Compensation Plan:

The amount of compensation will be decided on the meeting of board of


director, after assessing the actual loss.
48
Cooler Planet Solar System
(8) Pension Plan:

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.

(9) Holidays & Vacation:

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.

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.

49
Cooler Planet Solar System
50
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.

51
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:

Initially the technicians will be supervised by Diploma Engineers. Again, the


components of the solar system will be warranted by the foreign suppliers and will be
replaced if damaged as per purchase agreement with the supplier.

52
Cooler Planet Solar System
Management Risk

While running a business, robust Management is indispensable for coordination of


work and for running the business smoothly. Any Management conflict may lead to
downfall of a successful business plan.

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.

Exchange rate Risk

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:

Company’s earnings have been forecasted considering the exchange rate


fluctuation. Besides rise in input price can be transferred in the output price as such
exchange rate risk is expected much be in control.

Technological obsolescence risk

Although the concept of implementing solar power is new in Bangladesh; various


research are going on to up bring sustainable energy at cheaper price. In case a new
innovative source of power is unveiled at a cheaper cost, the solar power business
may prove to be unsuccessful and may not reach break even.

53
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.

54
Cooler Planet Solar System
Sales Forecasting
Year 2011

Sl. Name of Price/ Monthly forecasted sales Total Total


No. the unit(tk Jan Feb Mar Ap Ma Jun Jul Au Se Oct No De Sales Earnings
product .) . . . r. y e y g. p. . v. c.
(units)
1. Solar 14,000 12 23 320 33 350 400 55 45 42 25 225 35 3995 5,59,30,000
Home 0 0 0 0 0 0 0 0
system
2. Garden 15,000 5 5 5 5 10 5 5 5 15 5 5 3 73 10,95,000
light
3. FAN_DQ- 4,000 65 60 60 50 70 80 90 70 45 50 35 55 730 29,20,000
1298
Tot 5,99,45,000
al

Sales Forecasting
Year 2012

Sl. Name of Price/ Monthly forecasted sales Total Total


No. the product unit(t Jan Feb Ma Apr Ma Jun Jul Au Se Oc Nov De Sales Earnings
k.) . . r. . y e y g. p. t. . c.
(units)
1. Solar home 14,00 15 150 28 250 36 320 45 40 35 30 250 37 3630 5,08,20,000
System 0 0 0 0 0 0 0 0 0
2. Garden 15,00 30 30 30 50 10 50 50 50 13 50 50 30 650 97,50,000
light 0 0 0
3. FAN_DQ- 3,000 30 30 37 80 40 70 60 45 55 50 30 40 567 17,01,000
928
4. FAN_DQ- 4,000 40 40 42 40 65 70 80 65 40 45 30 50 607 24,28,000
1298
55
Cooler Planet Solar System
Total 6,46,99,000

Sales Forecasting
Year 2013

Sl. Name of Price/ Monthly forecasted sales Total Total


No. the unit(t Ja Feb Mar Ap Ma Jun Jul Au Sep Oc Nov De Sales Earnings
product k.) n. . . r. y e y g. . t. . c. (units)
1. Solar 14,00 33 200 250 20 30 450 60 50 450 30 350 40 4330 6,06,20,000
System 0 0 0 0 0 0 0 0
2. Garden 15,00 50 30 40 50 80 100 15 10 200 10 180 15 1230 1,84,50,000
light 0 0 0 0 0
3. FAN_DQ- 3,000 60 50 55 75 50 80 70 60 65 60 48 55 728 21,84,000
928
4. FAN_DQ- 4,000 55 40 50 45 50 85 90 70 55 55 45 65 705 28,20,000
1298
Tot 8,40,74,000
al

Sales Forecasting
Year 2014

Sl. Name of Price/ Monthly forecasted sales Total Total


No. the unit(tk Ja Feb Mar Ap Ma Jun Jul Au Sep Oc Nov. De Sales Earnings
product .) n. . . r. y e y g. . t. c. (units)
1. Solar 13,000 40 350 350 35 50 550 70 70 600 35 280 45 5580 7,25,40,000
System 0 0 0 0 0 0 0
2. Garden 20,000 10 150 100 15 18 300 35 20 180 15 180 50 2090 4,18,00,000
light 0 0 0 0 0 0
3. FAN_DQ- 3,500 66 70 65 85 60 90 10 70 70 67 60 50 853 29,85,500

56
Cooler Planet Solar System
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

Sl. Name of Price/ Monthly forecasted sales Total Total


No. the unit(tk Ja Feb Mar Ap Ma Jun Jul Au Sep Oc Nov. De Sales Earnings
product .) n. . . r. y e y g. . t. c. (units)
1. Solar 16,000 33 200 250 20 30 450 60 50 400 25 250 35 4150 5,81,00,000
System 0 0 0 0 0 0 0
2. Garden 12,000 50 30 40 50 80 100 15 10 150 50 50 30 730 1,09,50,000
light 0 0
3. FAN_DQ- 3,500 60 50 55 75 50 80 70 60 60 50 40 45 670 4,020,000
928
4. FAN_DQ- 4,500 55 40 50 45 50 85 90 70 45 50 35 55 730 3,650,000
1298
Tot 7,67,20,000
al

57
Cooler Planet Solar System
COOLER PLANET SOLAR ENERGY (PVT.) LIMITED
Income Statement

For the Year ended, 2011

Particulars Amount(tk.) Amount (tk.)


Net Sales 5,99,45,000

(-) Cost of good sold 2,00,00,000


Gross Margin 3,99,45,000
Less: Expenses
Selling expenses 55,00,000
Administrative Expenses 1,10,00,000
58
Cooler Planet Solar System
Total Expenses 1,65,00,000
Earnings before income Taxes 2,34,45,000
(-)Tax (15%) 35,16,750
Net Income 1,99,28,250
Dividends(70% of net income) 1,39,49,775
Retained Earnings (30% of net income) 59,78,47
5

59
Cooler Planet Solar System
COOLER PLANET SOLAR ENERGY (PVT.) LIMITED
Income Statement

For the Year ended, 2012

Particulars Amount(tk.) Amount (tk.)

Net Sales 6,46,99,000

(-) Cost of good sold 1,10,00,000

Gross Margin 5,36,00,000

Less: Expenses

Selling expenses 40,00,000

Administrative Expenses 1,10,00,000

Total Expenses 1,50,00,000

Earnings before income Taxes 3,86,00,000

(-)Tax (15%) 57,90,000

Net Income 3,28,10,000

Dividends(70% of net income) 2,29,67,000

Retained Earnings (30% of net income) 98,43,00


0

60
Cooler Planet Solar System
COOLER PLANET SOLAR ENERGY (PVT.) LIMITED
Income Statement

For the Year ended, 2013

Particulars Amount(tk.) Amount (tk.)


Net Sales 8,40,74,00
0
(-) Cost of good sold 1,10,00,000

Gross Margin 7,30,74,000

Less: Expenses

Selling expenses 35,00,000

Administrative Expenses 1,10,00,000

Total Expenses 1,45,00,000

Earnings before income Taxes 5,85,74,000

(-)Tax (15%) 87,86,100


Net Income 4,97,87,900
Dividends(70% of net income) 3,48,51,530
Retained Earnings (30% of net income) 1,49,36,3
70

61
Cooler Planet Solar System
COOLER PLANET SOLAR ENERGY (PVT.) LIMITED
Income Statement

For the Year ended, 2014

Particulars Amount(tk.) Amount (tk.)

Net Sales 12,01,43,000

(-) Cost of good sold 1,60,00,000

Gross Margin 10,41,43,000

Less: Expenses

Selling expenses 25,00,000

Administrative Expenses 1,10,00,000

Total Expenses 1,35,00,000

Earnings before income Taxes 9,06,43,000

(-)Tax (15%) 1,35,96,450

Net Income 7,70,46,550

62
Cooler Planet Solar System
Dividends(70% of net income) 5,39,32,585

Retained Earnings (30% of net income) 2,31,13,9


65

COOLER PLANET SOLAR ENERGY (PVT.) LIMITED


Income Statement

For the Year ended, 2015

Particulars Amount(tk.) Amount (tk.)


Net Sales 7,67,20,000

(-) Cost of good sold 1,20,00,000


Gross Margin 6,47,20,000
Less: Expenses

Selling expenses 55,00,000


Administrative Expenses 1,10,00,000
Total Expenses 1,65,00,000

63
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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

COOLER PLANET SOLAR ENERGY (PVT.) LIMITED


Balance Sheet

For the Year ended, 2011

Particulars Amount Amount


LIABILITIES & SHARE HOLDERS’S EQUITY

Current Liabilities
Accounts Payable 1,05,000

Taxes Payable 35,16,750

Total Current Liabilities 36,21,750

Long Term Liabilities


Bank Loan 0 0
64
Cooler Planet Solar System
Share Holder’s Equity
Common Stock 14,71,00,000

Retained Earning 59,78,475


Total Liabilities & Share holder’s Equity 15,67,00,225
ASSETS
Current Assets

Cash 4,53,42,000

Account Receivable 2,07,08,225


Inventory 12,00,000

Prepaid Expenses 4,30,00,000


Total Current Assets 11,02,50,225

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

Less: Accumulated Depreciation (5%) 6,00,000

65
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

Total Fixed Assets 4,64,50,000

Total Assets 15,67,00,225

COOLER PLANET SOLAR ENERGY (PVT.) LIMITED


Balance Sheet

For the Year ended, 2012

Particulars Amount Amount


LIABILITIES & SHARE HOLDERS’S EQUITY

Current Liabilities
Accounts Payable 1,10,000

Taxes Payable 57,90,000

66
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Total Current Liabilities 59,00,000

Long Term Liabilities


Bank Loan 0 0

Share Holder’s Equity


Common Stock 14,71,00,000

Retained Earning 98,43,000


Total Liabilities & Share holder’s Equity 15,88,43,000
ASSETS
Current Assets

Cash 7,70,03,000

Account Receivable 2,50,00,000


Inventory 14,00,000

Prepaid Expenses 1,04,86,500


Total Current Assets 11,38,89,500

Fixed Assets

Land 70,00,000

Buildings 85,50,000

Less: Accumulated Depreciation (5%) 4,27,500

Building(net) 81,23,500

Pick up Van 1,00,00,000

67
Cooler Planet Solar System
Equipment 1,14,00,000

Less: Accumulated Depreciation (5%) 5,70,000

Equipment (net) 1,08,30,000

Furniture 95,00,000

Less: Accumulated Depreciation (5%) 5,00,000

Furniture (net) 90,00,000

Total Fixed Assets 4,49,53,500

Total Assets 15,88,43,000

COOLER PLANET SOLAR ENERGY (PVT.) LIMITED


Balance Sheet

For the Year ended, 2013

Particulars Amount Amount


LIABILITIES & SHARE HOLDERS’S EQUITY

68
Cooler Planet Solar System
Current Liabilities
Accounts Payable 80,000

Taxes Payable 87,86,100

Total Current Liabilities 88,66,100

Long Term Liabilities


Bank Loan 0 0

Share Holder’s Equity


Common Stock 14,71,00,000

Retained Earning 1,49,36,370


Total Liabilities & Share holder’s Equity 17,09,02,470
ASSETS
Current Assets

Cash 10,39,88,000

Account Receivable 1,18,08,645


Inventory 13,00,000

Prepaid Expenses 1,03,00,000


Total Current Assets 12,73,96,645

Fixed Assets
Land 70,00,000

Buildings 81,23,500
Less: Accumulated Depreciation (5%) 4,06,175

Building(net) 77,17,325
69
Cooler Planet Solar System
Pick up Van 1,00,00,000
Equipment 1,08,30,000

Less: Accumulated Depreciation (5%) 5,41,500


Equipment (net) 1,02,88,500

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

COOLER PLANET SOLAR ENERGY (PVT.) LIMITED

Balance Sheet

For the Year ended, 2014

70
Cooler Planet Solar System
Particulars Amount Amount
LIABILITIES & SHARE HOLDERS’S EQUITY

Current Liabilities
Accounts Payable 57,67,119

Taxes Payable 1,35,96,450

Total Current Liabilities 1,93,63,569

Long Term Liabilities


Bank Loan 0 0

Share Holder’s Equity


Common Stock 14,71,00,000

Retained Earning 2,31,13,965


Total Liabilities & Share holder’s Equity 18,95,77,534
ASSETS
Current Assets

Cash 14,73,72,000

Account Receivable 70,000


Inventory 30,000

Total Current Assets 14,74,72,000

Fixed Assets
Land 70,00,000

Buildings 77,17,325

71
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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

Less: Accumulated Depreciation (5%) 5,14,425


Equipment (net) 97,74,075

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

COOLER PLANET SOLAR ENERGY (PVT.) LIMITED


Balance Sheet

For the Year ended, 2015


72
Cooler Planet Solar System
Particulars Amount Amount
LIABILITIES & SHARE HOLDERS’S EQUITY

Current Liabilities
Accounts Payable 11,22,157

Taxes Payable 72,33,000

Total Current Liabilities 83,55,157

Long Term Liabilities


Bank Loan 0 0

Share Holder’s Equity


Common Stock 14,71,00,000

Retained Earning 1,22,96,100


Total Liabilities & Share holder’s Equity 16,77,51,257
ASSETS
Current Assets

Cash 12,69,21,000

Account Receivable 70,000


Inventory 10,000

73
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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

Less: Accumulated Depreciation (5%) 4,88,704


Equipment (net) 92,85,371

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

74
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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

Cash Flow Statement

76
Cooler Planet Solar System
For the Year, 2012

Particulars Cash Transaction Amount (in’000)


Jan. Feb Ma Apr. May June July Aug. Sep. Oct. Nov. Dec.
. r.
Cash Inflows
Cash Sales 28,00 28,0 46, 46,50 69,20 57,20 75,50 67,45 71,75 52,80 44,60 59,50
0 49
Earnings from Interest 10 11 35 23 12 11 13 12 15 21 12 22
Total Cash In 28,10 28,1 46, 46,73 69,32 57,31 75,63 67,57 71,90 53,01 44,72 59,72
1 84
Cash Disbursement
Rent 1,70 1,70 1,7 1,70 1,70 1,70 1,70 1,70 1,70 1,70 1,70 1,70
0
Salaries & wages 5,00 5,00 5,0 5,00 5,00 5,00 5,00 5,00 5,00 5,00 5,00 5,00
0
Legal & Audit Fees 10,00 0 0 0 0 0 0 0 0 0 0 0
Utilities (heat, light, water) 1,00 1,00 1,0 1,00 1,00 1,00 1,00 1,00 1,00 1,00 1,00 1,00
0
Insurance 10,00 0 0 0 0 0 0 0 0 0 0 0
Income Tax 0 0 0 0 0 0 0 0 0 0 0 57,90
Cash Dividend 0 0 0 0 0 0 0 0 0 0 0 2,29,6
7
Other cash Expenses 1,60 1,70 1,3 1,20 2,10 2,15 2,50 1,20 1,40 1,60 1,90 2,00
0
Total Cash out 29,30 9,40 9,0 8,90 9,80 9,85 10,20 8,90 9,10 9,30 9,60 2,97,
0 27
Reconciliation of Cash Flow
Opening Cash Balance 4,53, 4,5 4,9 5,27, 5,87, 6,94, 7,41, 8,07, 8,65, 9,28, 9,72, 1,00,
42 2,2 0,0 89 41 39 85 28 95 75 46 758
2 6
Add: Cash In 28,10 28,1 46, 46,73 69,32 57,31 75,63 67,57 71,90 53,01 44,72 59,72
1 84
Deduct: Cash Out 29,30 9,40 9,0 8,90 9,80 9,85 10,20 8,90 9,10 9,30 9,60 2,97,
0 27
Closing Cash Balances 4,52, 4,9 5,2 5,87, 6,94, 7,41, 8,07, 8,65, 9,28, 9,72, 1,00, 7,70,
22 0,0 7,8 41 39 85 28 95 75 46 758 77 03
6 Cooler
9 Planet Solar System
COOLER PLANET SOLAR ENERGY (PVT.) LIMITED

Cash Flow Statement

For the Year, 2013

Particulars Cash Transaction Amount (in’000)


Jan. Feb. Mar. Apr. May June July Aug. Sep. Oct. Nov. Dec.
Cash Inflows
Cash Sales 57,70 35,60 44,65 39,55 57,50 83,80 1,12,2 89,60 97,15 61,00 79,64 82,75
0
Earnings from Interest 12 13 19 15 14 17 16 14 19 21 21 16
Total Cash In 57,82 35,73 44,84 39,70 57,64 83,97 1,12,3 89,74 97,34 61,21 79,85 82,91
6
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 5,00 5,00 5,00 5,00 5,00 5,00 5,00 5,00 5,00 5,00 5,00 5,00
& wages
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
Income Tax 0 0 0 0 0 0 0 0 0 0 0 87,86
Cash Dividend 0 0 0 0 0 0 0 0 0 0 0 3,48,52
Other cash Expenses 1,34 1,43 2,58 2,54 2,65 2,13 2,34 2,31 1,98 1,87 1,45 1,86
Total Cash out 29,04 9,13 10,28 10,24 10,35 9,83 10,04 10,01 9,68 9,57 9,15 4,45,94
Reconciliation of Cash Flow
Opening Cash Balance 7,70,0 7,98, 8,25, 8,59, 8,89, 9,36,7 1,01,0 1,12, 1,19, 1,28, 1,33, 1,40,29
3 81 41 97 43 2 8,6 31,8 29,1 05,7 22,1 ,1
Add: Cash In 57,82 35,73 44,84 39,70 57,64 83,97 1,12,3 89,74 97,34 61,21 79,85 82,91
6
Deduct: Cash Out 29,04 9,13 10,28 10,24 10,35 9,83 10,04 10,01 9,68 9,57 9,15 4,45,94
78
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Closing Cash Balances 7,98,81 8,25, 8,59, 8,89, 9,36, 1,01,0 1,12,3 1,19, 1,28, 1,33, 1,40, 10,39,8
41 97 43 72 8,6 1,8 29,1 05,7 22,1 29,1 8

COOLER PLANET SOLAR ENERGY (PVT.) LIMITED

Cash Flow Statement

For the Year, 2014

Particulars Cash Transaction Amount (in’000)


Jan. Feb. Mar. Apr. May June July Aug. Sep. Oct. Nov. Dec.
Cash Inflows
Cash Sales 97,0 80,4 89,6 79,87 1,05,5 1,37,9 1,68,3 1,36,6 1,18,3 79,95 76,07 72,53
6 0 6 5 8 5 0 7
Earnings from Interest 12 10 13 12 12 11 10 11 12 13 11 14
Total Cash In 97,1 80,5 89,7 79,99 1,05,6 1,38,0 1,68,4 1,36,7 1,18,4 80,08 76,18 72,67
8 0 9 7 9 5 1 9
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 10,0 0 0 0 0 0 0 0 0 0 0 0
0
Utilities (heat, light, water) 1,00 1,00 1,00 1,00 1,00 1,00 1,00 1,00 1,00 1,00 1,00 1,00
Insurance 10,0 0 0 0 0 0 0 0 0 0 0 0
79
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0
Cash Dividend 0 0 0 0 0 0 0 0 0 0 0 5,39,3
3
Income Tax 0 0 0 0 0 0 0 0 0 0 0 1,39,9
7
Other cash Expenses 1,26 1,73 1,43 1,42 1,52 1,32 1,42 1,23 1,76 1,65 1,23 1,84
Total Cash out 28,9 9,43 9,13 9,12 9,22 9,02 9,12 8,93 9,46 9,35 8,93 6,88,8
6 4
Reconciliation of Cash Flow
Opening Cash Balance 1,03 1,10 1,17, 1,25,9 1,33,0 1,42,7 1,55,6 1,71,5 1,84,3 1,95,2 2,02,3 2,08,9
,98, ,81, 91,7 8,3 7,0 1,5 2,2 5,5 3,3 3,6 0,9 8,9
8 0
Add: Cash In 97,1 80,5 89,7 79,99 1,05,6 1,38,0 1,68,4 1,36,7 1,18,4 80,08 76,18 72,67
8 0 9 7 9 5 1 9
Deduct: Cash Out 28,9 9,43 9,13 9,12 9,22 9,02 9,12 8,93 9,46 9,35 8,93 6,88,8
6 4
Closing Cash Balances 1,10 1,17 1,25, 1,33,0 1,42,7 1,55,6 1,71,5 1,84,3 1,95,2 2,02,3 2,08,9 14,73,
,81, ,91, 98,3 7,0 1,5 2,2 5,5 3,3 3,6 0,9 8,9 72
0 7

COOLER PLANET SOLAR ENERGY (PVT.) LIMITED

Cash Flow Statement

For the Year, 2015

Particulars Cash Transaction Amount (in’000)


Jan. Feb. Mar. Apr. May June July Aug. Sep. Oct. Nov. Dec.
Cash Inflows
Cash Sales 63,3 39,1 48,9 42,65 61,60 90,62 1,04,3 97,25 69,92 50,00 48,98 63,65
7 5 8 0
Earnings from Interest 1o 11 12 13 12 11 12 13 11 10 14 15
80
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Total Cash In 63,4 39,2 49,1 42,78 61,72 90,73 1,04,4 97,38 70,03 50,10 49,12 63,80
7 6 0 2
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 10,0 0 0 0 0 0 0 0 0 0 0 0
0
Utilities (heat, light, water) 1,00 1,00 1,00 1,00 1,00 1,00 1,00 1,00 1,00 1,00 1,00 1,00
Insurance 10,0 0 0 0 0 0 0 0 0 0 0 0
0
Cash Dividend 0 0 0 0 0 0 0 0 0 0 0 2,86,9
1
Income Tax 0 0 0 0 0 0 0 0 0 0 0 72,33
Other cash Expenses 1,00 1,15 1,22 1,11 1,15 1,13 1,21 1,23 1,37 1,47 1,42 1,32
Total Cash out 28,7 8,85 8,92 8,81 8,85 8,83 8,91 8,93 9,07 9,17 9,12 3,68,2
0 6
Reconciliation of Cash Flow
Opening Cash Balance 14,7 15,0 15,3 15,79, 16,13, 16,65, 17,47, 18,43, 19,31, 19,92, 20,33, 20,73,
3,72 8.49 8,90 08 05 92 82 33 78 74 67 67
Add: Cash In 63,4 39,2 49,1 42,78 61,72 90,73 1,04,4 97,38 70,03 50,10 49,12 63,80
7 6 0 2
Deduct: Cash Out 28,7 8,85 8,92 8,81 8,85 8,83 8,91 8,93 9,07 9,17 9,12 3,68,2
0 6
Closing Cash Balances 15,0 15,3 15,7 16,13, 16,65, 17,47, 18,43, 19,31, 19,92, 20,33, 20,73, 17,69,
8,49 8,90 9,08 05 92 82 33 78 74 67 67 21

Ratio Analysis:
COOLER PLANET SOLAR ENERGY (PVT.) LIMITED

81
Cooler Planet Solar System
For the Year , 2011

Sl. No. Name of the Ratio Explanation Amount Ratio


1. Current Ratio Total Current Assets 110250225
30.44
Total Current Liabilities 3621750
2. Acid-test Ratio Current assets-Inventory- 110250225-1200000-
Prepaid Exp. 43000000 18.24

Current Liabilities 3621750


3. Debt-to-equity Ratio Total Debt 3621750
0.023
Total Equity 153078475
4. Inventory Ratio Cost of Goods Sold 20000000
16.67
Avg. Inventory 1200000

5. Average Collection Account Receivable 20708225


Period X 126.09
365 59945000
Annual sales
6. Return on Total Operating Income 19928250
Assets 0.13
Total Assets 156700225
7. Return on Equity Net Income 19928250
0.13
Share Holders Equity 156700225

EXPLANATION:

82
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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.

83
Cooler Planet Solar System
COOLER PLANET SOLAR ENERGY (PVT.) LIMITED
For the Year , 2012

Sl. No. Name of the Ratio Explanation Amount Ratio


1. Current Ratio Total Current Assets 123789500
20.98
Total Current Liabilities 5900000
2. Acid-test Ratio Current assets-Inventory- 123789500-6400000-
Prepaid Exp. 10513500 18.11

Current Liabilities 5900000


3. Debt-to-equity Ratio Total Debt 5900000
0.034
Total Equity 156943000
4. Inventory Ratio Cost of Goods Sold 1,10,00,000
1.72
Avg. Inventory 6400000
5. Average Collection Account Receivable 3,87,00,000
Period
X 365 6,46,99,000
Annual sales
6. Return on Total Operating Income 3,28,10,000
Assets 0.19
Total Assets 16,87,43,000
7. Return on Equity Net Income 3,28,10,000
0.19
Share Holders Equity 16,87,43,000

84
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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.

5. Average Collection Period: in 2012 our average Collection Period is 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 are 0.19.In 2011 Return on Total Assets are 0.13.So return on assets in 2012 is increases.
7. Return on equity: In 2012 our net income is3,28,10,000 and share holders equity is16,87,43,000. Return on
equity is 019.

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Cooler Planet Solar System
COOLER PLANET SOLAR ENERGY (PVT.) LIMITED
For the Year , 2013

Sl. No. Name of the Ratio Explanation Amount Ratio


1. Current Ratio Total Current Assets 12,73,96,645
14.37
Total Current Liabilities 88,66,100
2. Acid-test Ratio Current assets-Inventory- 12,73,96,645-13,00,000-
Prepaid Exp. 1,03,00,000 13.06

Current Liabilities 88,66,100

Total Debt 88,66,100


0.054
3. Debt-to-equity Ratio Total Equity 162036370

4. Inventory Ratio Cost of Goods Sold 1,10,00,000


0.53
Avg. Inventory 13,00,000
5. Average Collection Account Receivable 2,06,35,645
Period X 89.59
365 8,40,74,000
Annual sales
6. Return on Total Operating Income 4,97,87,900
Assets 0.29
Total Assets 17,09,02,470
7. Return on Equity Net Income 4,97,87,900
0.33
Share Holders Equity 153078475
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EXPLANATION:

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 System
COOLER PLANET SOLAR ENERGY (PVT.) LIMITED
For the Year , 2014

Sl. No. Name of the Ratio Explanation Amount Ratio


1. Current Ratio Total Current Assets 14,74,72,000
7.61
Total Current Liabilities 1,93,63,569

2. Acid-test Ratio Current assets-Inventory- 14,74,72,000- 30,000


Prepaid Exp. 7.61
1,93,63,569
Current Liabilities
3. Debt-to-equity Ratio Total Debt 1,93,63,569
0.11
Total Equity 170213965

4. Inventory Ratio Cost of Goods Sold 1,60,00,000


533.33
Avg. Inventory 30,000
5. Average Collection Account Receivable 88,52,000
Period X 26.90
365 12,01,43,000
Annual sales
6. Return on Total Operating Income 7,70,46,550
Assets 0.41
Total Assets 18,95,77,534
7. Return on Equity Net Income 7,70,46,550
0.41
Share Holders Equity 18,95,77,534

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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 System
COOLER PLANET SOLAR ENERGY (PVT.) LIMITED
For the Year , 2015

Sl. No. Name of the Ratio Explanation Amount Ratio


1. Current Ratio Total Current Assets 17,70,01,000
21.18
Total Current Liabilities 83,55,157
2. Acid-test Ratio Current assets-Inventory- 17,70,01,000-10,000
Prepaid Exp. 21.18
83,55,157
Current Liabilities
3. Debt-to-equity Ratio Total Debt 83,55,157
0.054
Total Equity 153996100
4. Inventory Ratio Cost of Goods Sold 1,20,00,000
1200
Avg. Inventory 10,000
5. Average Collection Account Receivable 70,000
Period X 0.333
365 7,67,20,000
Annual sales
6. Return on Total Operating Income 4,09,87,000
Assets 0.244
Total Assets 16,77,51,257
7. Return on Equity Net Income 4,09,87,000
0.244
Share Holders Equity 16,77,51,257
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Cooler Planet Solar System
EXPLANATION:

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

As Bangladesh is graduating from least developed to a developing country,


incessant power at all levels is vital to the growth of the economy. While
exploration for sustainable energy is continuing, Cooler Planet Solar Energy
Ltd’s solar system business is a timely and demanding arena where the
company is expected to become successful based on the following
considerations:

 Huge untapped market of the product.

 Wide target area covering all the six divisions of the country.

 Well educated entrepreneurs supported by experienced


professionals.

 Robust financial strength of the company.

 Well defined business strategy formulation for marketing, selling


and distribution of the product.

 Government’s encouragement as one of the thrust sectors of the


country.

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