[AAC BLOCK MAKING MACHINE]

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[www.kalifashions.com]

SKF IMPEX

Ankur Shopping Center -3,101,Building No-2, Opp Sardar Bridge,Near Gujarat Gas Circle, Adaj an, Surat Office Number: 0261 -2780122Mobile

Number: 0091 -8141446341 Email:[email protected]

[www.kalifashions.com]

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Items

(Fly ash Based AAC lines)

Phase-1

(First executions- Gestation period-6 Months min)

Phase-2

(2nd executions- Gestation period-2 Months min)

Phase-1

(3rd executions- Gestation period-2 Months min) Semi Auto Total Project Fixed costs Auto Module AddON- landing Automatic Module Project Fixed Costs

50000 CM/Annum AAC Plant 718.52 0.00 0.00 718.52 60.00 778.52

Working Capital Rs. Lakhs

50000 CM/Annum AAC Plant 44.37

Sample AAC Project for Dongyue-India Clients AUTOCLAVED AREATED CONCRETE BLOCKS PROJECT EXECUTION SUMMERY

All figures in Rs. Lakhs

Please see the fixed inner sheets for details

If we need sand base AAC add on, we need to add a 150 KW ball mill and a block separator Extra. Even we may need 2 more autoclaves to reach max production of 1,5 Lakhs CM as the steam curing period is at least 25% more

Assumptions for Sample Project Profile As land costs vary widely, this has been excluded

Customs duties considered as per rates applicable during 2010-11 10% depreciations of Land & Buildings considered & 15% on machinery USD exchange rate taken as Rs.

45/-Sea Fare, Truck charges, C/F charges as per the prevailing charges is considered

The shed area and office area for guidelines only. Clients can have their own luxury as per the needs. The work shed and office space and fabrication charges considered as CPWD averages.

The Machinary Commissioning and Civil charges are considered @ 5% of its landing price For clarity Phase 2 expansion is considered in Year 2 and Phase 3 expansion in Year-3 The raw material rates pertains to a specific place and may vary from place to place

Block sale price indicated in this Project is exfactory. All taxes and transport extra as applicable Intrest and oppurtunity cost is considered at 13% as per the Prevailing rates

Disclaimer

This Project Profile is supplied free of cost to all prospective AAC clients

This FULL document can be distributed free of cost to any one, without any sort of permission This Document cannot be sold to anyone for any purpose( neither soft copy nor hard copy) This Project Profile is A

GENERALISED profile and do not represent any one unit in particular. This is for guiding prospective client, and helping them to understand the project well

This can also serve a basis for Clients Chartered Account for making a DPR for them

This template with a little variation can be used to get the DIC EM-1, Pollution control NOC, and other Docs

This document do not in any way bind, restrict or force any data on Dongyue Company or N.G.Reddy The AAC project being Modular, there can be client specific needs, which may not be mentioned herein. As the raw materials vary widely, so also does the mix designs we suggest. So final costing may vary. The Price basics for China Machinery, and Indian side machinery is just for reference purpose.

Even the quantity of items is approximate, and can vary from case to case basis

The civil costs can vary depending location, and the clients rapport and grasp on the field

The fabrication costs can depend a lot on clients ability to handle the things on his own, and Steel Prices The speed of execution of project totally depends on Clients skills to Coordinate the Indian suppliers We can take up the client specific Project profile on a Nominal Payment basis

We are attempting to get the AAC units bundled in a group for CDM benefit to earn Carbon Credits

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Mandatory Items

sl No

Item Descriptions

Length Mt

widthe Mt

total Sft

1 Pre curing Room 24.00 16.50 3960

2 Mould Turning Ares 6.00 16.50 990

3 Cutting Area 18.00 16.50 2970

4 Boiler Area 16.00 8.00 1280

5 Total Mandatory workshed Areas 9200

Optional---Raw Material Area

6 Raw Material Handling Section 12.00 16.67 2000

Autoclave block waiting Bay

7.a For 50000 CM/annum plant 30.00 8.00 2400

7.b For 100000 CM/annum plant 30.00 14.00 4200

7.c For 150000 CM/annum plant 30.00 20.00 6000

Workshed & Plant Area Summery

Total Area _{(acers )} Shed Area (sft) Plant Area (sft)

1. Minimum Area for 50000CM Plant 2.50 13600 18400

Sample AAC Project for Dongyue-India Clients

A

Work Shed for different Size AAC Units

B

Work Shed & Instllation Area Summery

Note:

1. The Autoclave out bay shed and Autoclave Area shed is optional

2. Autoclave out bay shed is equal to Autoclave waiting Bay area

3. Autoclave shed area is equal to 60% of Autoclave waiting Bay area

4. Blocks Storage area workshed is also optional.

C

Installation Schedule

Installation Schedule for 150000 CM/Year capacity AAC plant on autoclaves & Major Items

Sl. No Items Phase-1 Phase-2 Phase-3

1

Autoclaves Complete Kit along with Body, Steam Pipes, Cyllinder and

Insulation, safety devices, Rails

2 2 2

2 Moulds 12 4 4

3 Side Pallets 50 50 50

4 Steam Traullies 25 25 25

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1 CIF Price (=FOB Price+Sea Fright+ Sea Insurance) % value 100.00 2 Landing Overheads by Indian Costoms

1% 101.00

3 Basic Customs Duty (84708410) 7.50% 7.58

4 sub total-1 108.58

5 CVD (Counter Valing Duty) 10% 10.86

6 Deducational cess 3% 0.33

7 Sub total-2 119.76

8 Customs cess on total duty 3% 0.56

9 sub Total-3 120.32

1 0

Aditional customs cess 4% 4.81

1 1

Grand Total 125.13

1 2

EFFECTIVE Percentage of tax on imports over CIF price

25.13% Sample AAC Project for Dongyue-India Clients

D

Indian Total Duty Obligation Calculations

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E

Details of Machinary From (Both India and China ) Installation in a 3 Phase Split

Item

Rate

Unit

Phase-1

Phase-2

Phase-3

Items imported from China…FOB

price ( Fully Automatic Module ) US$ 613,556 89,018 89,018

Containers needed nos 12 2 2

Avg Sea frieght + Insurance 1500 US$ 18,000 3,000 3,000

CIF price US$ 631,556 92,018 92,018

Customs + CVD + Surcharge, and

other taxes 25.13% US$ 158,710 23,124 23,124

Landing Price US$ 790,265 115,142 115,142

Landing price in INR 45 Rs. 35,561,943 5,181,396 5,181,396

Clearing and liasoning charges per

B/L Rs. 12,000 12,000 12,000

Destuffing and road frieght charges on

trawler basis 30000 Rs. 360,000 60,000 60,000

Total Chinise Machine at

site Price

Rs.

35,933,943

5,253,396

Total Indian Machines FOR Prices (approxmate USD

equvalent)

USD 364,896 164,960 164,960

Total Indian Parts prices

in INR *

45 Rs.

16,420,320

7,423,200

Grand total Machinary

Rs.

52,354,263

12,676,596

Installation &

commissioning including

civil works

5%

Rs.

2,617,713

633,830

Total Machinary

commissioned charges at

site

Rs.

54,971,976

13,310,425

Total Machinary

commissioned costs in

Lakhs INR

Lakhs Rs

549.72

133.10

* India Side Procurement includes Boiler, Autoclaves, Surrry Tank Body, Loader, Forklift, and Other unfabricated MS items

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F

Fixed Cost Calculations

Sl No

Details

Fixed

Cost

Promote

r's

Margin

in %

Seed

Funding

Bank

Loan

1 Land 4 Acers @ Rs. Own Land

0.00 100.00 0.00 0.00

2 Land Devolopment @ Rs. 3 Lakhs/Acer

15.00 50.00 7.50 7.50

3 Stores & workShed 17200 sft @ Rs.800/-

137.60 30.00 41.28 96.32

4 office 1000 sft

8.00 30.00 2.40 5.60

5 500 sft x 3 floor rcc or MS struct

15.00 30.00 4.50 10.50

6 Mis fixed assets

5.00 40.00 2.00 3.00

7 Transformer/geneset/Electric Installations

& charges

50.00 25.00 12.50 37.50

8 Water Source--Boor Well with Pump

2.00 25.00 0.50 1.50

9 Plant & Machinary(with Installation)-

Phase-1 (1st Year)

549.72 25.00 137.43 412.29

10 Plant & Machinary(with Installation)-

Phase-2 (2nd yr)

133.10 25.00 33.28 99.83

11 Plant & Machinary(with

Installation)-Phase-3 (3nd yr)

133.10 25.00 33.28 99.83

12 Prilimnary exp

5.00 40.00 2.00 3.00

13 Preoperative

15.00 40.00 6.00 9.00

14 Contingency

5.00 40.00 2.00 3.00

15 Total

1073.53

284.66 788.87

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1st Year Capacity 50000

Costing Per Month at 80% production 40000 24000 Tons

1 Raw materials/ CM in Rs. in Rs.

particulars Quantity T rate/tonne Amount

a Fly Ash 0.45 150 Rs. 67.50

b lime 0.09 5000 Rs. 450.00

c OPC Cement (Tanker load) 0.07 5000 Rs. 350.00

d Aluminium power 0.0005 230000 Rs. 115.00

e Gypsium 0.005 550 Rs. 2.75

f RM/CM 0.62 Rs. 985.25

g h i j Power(KWH) Coal (Kg) Other Consumables Total add W astage @ 1% 9.00 30.00 6 Rs. 54.00

4 Rs. 120.00 Rs. 50.00 Rs. 1,209.25 Rs. 12.09

k Raw material per CM Rs. 1,221.34

L Raw Materials per month at 80% capacity

CM 3333.33 Rs. 4,071,141.67

2 Labour/Month Nos Lab/Month Tot sal/day

a b

c

Skilled Labour Semi Skilled Labour

Un skilled Labour 5 5 10 6000 5000 4000 Rs. 30,000.00

Rs. 25,000.00 Rs. 40,000.00 d Total Labour/Month Rs. 95,000.00 Rs. 95,000.00

3 Officeial staff/Month Nos Lab/Month Tot sal/day a

b c

Managers & accounts Supervisors Other staff 2 4 4 10000 8000 6000 Rs. 20,000.00

Rs. 32,000.00 Rs. 24,000.00 d Total Labour/Month Rs. 76,000.00 Rs. 76,000.00

5 Insuraance per Month ( at 0.3% per annum ) Rs. 20,182.99 Rs. 20,182.99

6 Maintainance per Month ( at 2% per annum ) Rs. 91,619.96 Rs. 91,619.96

7 Office Overheads(Post+phone+Net+travel+stanry) @ Rs. 25/CM Rs. 83,333.33 Rs. 83,333.33

8 Total Expences per Month Rs. 4,437,277.95

G

Working Capital Calculation

9 Working Capital for 1 Cycle

a Curing Line 2 days

b Cerdit Period 14 days

c Stock holding 14 days

d Total = 30 Days

10 Working Capital for 1 Cycle (30 days=1 month)- 1st year Rs. 4,437,277.95

11 Working Capital for 1 Cycle (30 days=1 month)- 2nd year Rs. 8,874,555.91

12 Working Capital for 1 Cycle (30 days=1 month)- 3nd year Rs. 13,311,833.86

* Note

i Installed Capacity in phase-1 (1st Year ) is 50000 CM/annum ii

capacity adition in phase-2 (2nd Year ) is 50000 CM/annum

iii capacity adition in phase-3 (3rd Year ) is 50000 CM/annum

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Item

1st Yr 2nd year 3rd Year 4th Year 5th Year Remarks

1

Block Land & Building 165.60 149.04 134.14 120.72 108.65

2

Added Land & Buildi ngs 0.00 0.00 0.00 0.00 0.00

3

Depreaciation on building/shed and other

constructions except land 10% 16.56 14.90 13.41 12.07 10.87

4

Year end Block 149.04 134.14 120.72 108.65 97.79

1

Block Machinary 601.72 511.46 567.85 615.77 523.41

2

Block Added in the Year 0.00 133.10 133.10 0.00 0.00

3

Depreaciation on machinary & equipments 15% 90.26 76.72 85.18 92.37 78.51

4

Year end Block 511.46 567.85 615.77 523.41 444.90

H

DEPREATIATION

I

Debt Service Coverage Ration ( D.S.C.R )

1 Bank Loan 689.04 689.04 616.61 444.35 272.09

2 Intrest on Bank Loan 89.57 89.57 80.16 57.77 35.37

3 Repayment 0.00 172.26 172.26 172.26 172.26

4 Aditional Loan in Year 0.00 99.83 0.00 0.00 0.00

5 Profits before TAX 249.99 709.64 1147.13 1256.72 1387.22

6 Profits after Tax (33%) 33% 82.50 234.18 378.55 414.72 457.78

7 Profit After Tax 167.49 475.46 768.57 842.00 929.44

8

D.S.C.R

4.06 2.51 3.75 4.37 5.08

9 Average DSCR

3.95

Note D.S.C.R = ( Profit After Tax + Depreciation + Intrest on Trrm Loan ) / (Intrest on Term Loan + Term Loan Repayment )

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J

Project Cost, Profitability Calculation & Ratios

J

1 Project Cost

1st Yr 2nd year 3rd

Year

4th Year

5th Year

1 Total Fixed Capital 807.3

2 940.42 1073.53 1073.53 1073.53

2 Total Working Capital (30

days) 44.3 7 88.7 5 133.1 2 144.2 1 155.3 0 3 Project Cost 851.6 9 1029.1 7 1206.6 5 1217.7 4 1228.8 3 J2 Machinary Utilisation assumed/production 4000 0 8000 0 12000 0 13000 0 14000 0 C M/ yea r

E Cost of production per year

1 Working capital for 12 months 532.4

7 1064.9 5 1597.4 2 1730.5 4 1863.6 6 2

Depreaciation on building/shed and

other constructions except land 10 percent 16.5 6 14.9 0 13.4 1 12.0 7 10.8 7 3 equipments 15 percent 90.2 6 76.7 2 85.1 8 92.3 7 78.5 1

4 Intrest and Oppurtunity Cost 13 percent 110.7 2 133.7 9 156.8 6 158.3 1 159.7 5

5 Total cost of production 750.0

1 1290.3 6 1852.8 7 1993.2 8 2112.7 8

J3 Sales per year @ Rs. 2500/CM 1000.0

0 2000.0 0 3000.0 0 3250.0 0 3500.0 0 Note :

Sales inclusive of VAT & Excise 2808.00

Expected CER Generated 5000.0

0 10000.0 0 15000.0 0 16250.0 0 17500.0 0

J4 Carbon Credit Revenue (Apprx) 25.8

8 51.7 5 77.6 3 84.0 9 90.5 6 Note : CERs @8 CM=1 CER, 50000 CM=6666 CER @ 11.5 Euros@60 IN

25% of CERs deducted as transactional and operational costs. CER revenues for Guidelines only. Not computed in Profitability of this report Analisis J5 Total Revenue 1000.0 0 2000.0 0 3000.0 0 3250.0 0 3500.0 0 J6 Net Profit/year 249.9 9 709.6 4 1147.1 3 1256.7 2 1387.2 2

J7 Net Profit Ratio 25.0

0 35.4 8 38.2 4 38.6 7 39.6 3 %

J8 Rate of return on investment 29.3

5 68.9 5 95.0 7 103.2 0 112.8 9 % J9 Fixed cost (Per annum)

1 Depreatiation (Full) 106.8 2 91.6 2 98.5 9 104.4 4 89.3 8

2 Insurance (0.3% on Fixed costs) 2.4

2 2.8 2 3.2 2 3.2 2 3.2 2

3 Intrest on investment (Full) 110.7

2 133.7 9 156.8 6 158.3 1 159.7 5 4 25% Power 5.4 0 10.8 0 16.2 0 17.5 5 18.9 0

5 30% of wages &50% salary 7.9

8 15.9 6 23.9 4 25.9 4 27.9 3

6 Other Overheads (Full) 10.0

0 20.0 0 30.0 0 32.5 0 35.0 0

7 Total fixed cost 243.3

4 275.0 0 328.8 2 341.9 5 334.1 8 J1 0

Break Even Point (B.E.P) 49.3

3 31.6 6 22.2 8 21.0 1 19.4 1 %

Note :

1 Net Profit Ratio = (Net Profit / Net Sales) x100

2 Rate of Return on Investment = (Net Profit / Project Cost) x 100

3 Break Even Point ( B.O.P )= (Fixed Cost / (Fixed Cost + Net Profit)) x 100