APPENDICES

15
Appendix 1 | Product Design

Fig 1.01: Solar Panel of B I Z L I bulb Fig 1.02: Bulbs of B I Z L I

Fig 1.03: On/Off Switch of B I Z L I Fig 1.04: Battery position of B I Z L I

Fig 1.05: Inside of battery holder Fig 1.06: B I Z L I light in work

16
Appendix 2 | Marketing Research

Unaffordable:
4 BILLION People lack reliable access to electricity, with 1.8 BILLION people with no access to electricity
entirely. Rural customers around the world are estimated to spend between $8 and $12 per month for
replacement lighting services, including candles, kerosene, dry cells, or battery charging whereas the
expenditure in Bangladesh is around $07 per day for a family. These sources of energy are dirty and inefficient,
and on a per-kilowatt basis they cost anywhere from five to 100 times more than modern fuels and electricity.
As a result, lighting represents between 10% and 40% of a family’s income. Given that grid extension can cost
up to $10,000 per kilometer, renewable energy lighting systems are needed to reduce the cost burden on rural
households. Without affordable lighting, children CANNOT study at night, businesses CANNOT operate after
sundown, mothers have difficulty in cooking, and life overall is dramatically more difficult.
Unhealthy:
Kerosene and other fossil fuels produce noxious fumes that can lead to a variety of ailments. According to the
World Bank, 780 million women and children breathing particulate laden kerosene fumes inhale the equivalent
smoke from two packs of cigarettes per day. The result is that two thirds of the adult female lung cancer victims
are non-smokers. Furthermore, carbon monoxide replaces the oxygen indoors, which can result in death.
Nitrogen oxides and sulfur oxides also cause lung and eye infections, respiratory problems and cancer, while
volatile organic compounds also cause eye, nose, and throat infections, kidney and liver afflictions, and cancer.
Poor ventilation compounds the problem, increasing the risk of serious health hazards that are serious and
debilitating. Indoor air pollution often results in illness and death. In developing nations, acute respiratory
infection, influenza and pneumonia caused by kerosene exposure kill over 1 million people annually, over 60%
of whom are under age 14.
Environmentally Unfriendly:
Kerosene is a fossil fuel. In B I Z L I’s countries of operations (Bangladesh, Bhutan, Nepal, Pakistan,
Afghanistan, Sierra Leone), kerosene-based lighting systems result in over 25 million tons of carbon dioxide
every year. Worldwide, kerosene is responsible for 100 million tons of carbon emissions annually. Kerosene
also emits nitrogen oxides and sulfur oxides, which contribute to acid rain and ozone depletion.
Kerosene lamps cause countless deaths by burns, fires, and suffocation. In Rwanda, 25% of households
reported a kerosene related fire within the last year.
Unfit for Purpose:
The light provided by a kerosene lamp is dim and inefficient. The amount of light from the lamp is only about
1% of what the people in industrialized countries have for the same price and is only 0.2% as strong as a 60 watt
light bulb. The light is so poor that children can only see their books if they are almost directly over the flame.
As a result, they inhale even more of the toxic smoke. Besides being unhealthy, trying to do school work with a
kerosene lamp creates a barrier to education and learning.
Carbon Credit Summary
Two billion people worldwide routinely purchase and burn kerosene for light, emitting over 260 million tons of
CO2 annually – using up to 40% of their income while exposing themselves to harmful fumes. Because current
lighting alternatives are inadequate, access to electricity/light remains a primary obstacle to improving health,
education, and eradicating poverty. B I Z L I Energy aims to reduce global CO2 emissions and light up rural
households in Rwanda by distributing an innovative and affordable lighting system to replace fuel-based
lighting. The design and delivery model of our modular, rechargeable, LED lights allows a greater reach and
more immediate environmental impact than other lighting solutions.

17
Appendix 3 | Financial Projection and Analysis

Assumptions:
 The financial plan is intended to serve the potential as well as the existing investors a clear and decent
sensitivity about the performance of the business in the coming years.
 The business will run its operation for infinite time period i.e. “Going concern principle” will be
followed by the company. This principle will be the basis of all financial decisions taken by the
management body of the company
 Financial projections are made under the historical cost convention based on generally accepted
accounting principle.
 For projecting financial transactions, relevant international accounting standards together with the
relevant laws and rules of the country are followed.
 Growth in sales is calculated on the basis of reasonable forecast.
 Number of days in a year is assumed 360 days while number of days in a month is considered 30 days
for better compliance with the banker of the company and concerned parties
 Effective rates of interest have been considered in the overall planning.
 Transportation cost has been calculated considering the growing price of fuel.
 Interest Rate is 15%
 Ending Inventory is 10% of sales or purchase
 Salary amount will be used for working capital management.
 Leased asset is for 5 years
 Lease Interest rate is 15%
 $1 = BDT 70
 Depreciation has been done using straight line depreciation method
 Accounts receivable and accounts payable have been calculated as a fixed 10% of revenue
 Office equipment to be depreciated to a salvage value of 0 over a period of 5 years using the straight
line method. Installation tools will be depreciated to zero over two years using the same method.
 As the business is for rural development and will add value to the socio-economic aspects, it will get
tax holiday for the first 10 years of operation. Reference: Industrial undertaking established between
1st July, 2008 to 30th June, 2011 in fulfillment of certain conditions. Among the industrial
undertakings eligible for tax holiday LightHouse Company Limited gets full tax exemption under the
industrial category of “Production of insecticide and pesticide”. (For detailed information please visit
“www.nbr-bd.org/incometax.html”)

18
Start-Up Capital Requirement:

Startup Capital Amount in BDT Amount in $

Technical know-how fee & engineering fees 700,000.00 10000
Initial Business operation Management Expenses 150,000.00 2142.857143
Marketing Expenses 2,500,000.00 35714.28571
Office equipment & Accessories 180,000.00 2571.428571
Machineries 1,500,000.00 21428.57143
Furniture 500,000.00 7142.857143
Legal and Accounting Fees 175,000.00 2500
Office Supplies 30,000.00 428.5714286
Payroll during training 450,000.00 6428.571429
Permits and Licenses 30,000.00 428.5714286
Insurance 170,000.00 2428.571429
Vehicles 7,300,000.00 104285.7143
Laboratories 3,000,000.00 42857.14286
Equipment and plant 4,500,000.00 64285.71429
Cash Reserves 800,000.00 11428.57143
Land & Buildings 3,800,000.00 54285.71429
TOTAL STARTUP CAPITAL BDT 25,785,000.00 $ 368,357.14

Capital Financing Schedule:

Total Capital Required BDT $ %

25,785,000.00 368357.14
Owners' Equity 10,000,000.00 142857.14 38.78%
Debt Financing 3,950,000.00 56428.571 15.32%
Individual Financing 3,200,000.00 10714.286
Institutional Financing 750,000.00 45714.286
Lease Financing (Capital) 11,835,000.00 169071.43 45.90%
Total Financed Amount 25,785,000.00 368357.14 100.00%

19
Pro-forma Income Statement:

For the year ended on December 31

Year 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018

Amount Amount Amount in Amount Amou Amount Amou Amount Amou Amount
in BDT in $ BDT in $ nt in in $ nt in in $ nt in in $
BDT BDT BDT

Sales 28,000,0 400,000 108,500,00 1,550,0 177,5 2,536,00 194,0 2,772,000 226,5 3,236,0
00 .00 0 00.00 20,00 0.00 40,00 .00 20,00 00.00
0 0 0

Cost of 20,000,0 285,714 77,500,000 1,107,1 126,8 1,811,42 138,6 1,980,000 145,8 2,082,8
Goods 00 .29 42.86 00,00 8.57 00,00 .00 00,00 57.14
Sold 0 0 0

Gross 8,000,00 114,285 31,000,000 442,857 50,72 724,571 55,44 792,000.0 80,72 1,153,1
Profit 0 .71 .14 0,000 .43 0,000 0 0,000 42.86

Administr 450,000 6,428.5 500,000 7,142.8 550,0 7,857.14 650,0 9,285.71 1,000, 14,285.
ative 7 6 00 00 000 71
Expenses

Sales 300,000 4,285.7 1,500,000 21,428. 2,500, 35,714.2 3,500, 50,000.00 5,000, 71,428.
Expenses 1 57 000 9 000 000 57

Total Sales 750,000 10,714. 2,000,000 28,571. 3,050, 43,571.4 4,150, 59,285.71 6,000, 85,714.
and 29 43 000 3 000 000 29
administra
tive
expenses
Depreciati 1,474,66 21,066. 1,474,667 21,066. 1,474, 21,066.6 1,474, 21,066.67 1,474, 21,066.
on 7 67 67 667 7 667 667 67

Lease 3,530,56 50,436. 3,530,565 50,436. 3,530, 50,436.6 3,530, 50,436.64 3,530, 50,436.
Amortizati 5 64 64 565 4 565 565 64
on

Net profit 2,244,76 32,068. 23,994,769 342,782 42,66 609,496 46,28 661,210.9 69,71 995,925
before 9 13 .41 4,769 .70 4,769 8 4,769 .27
interest

Interest 496,500 7,092.8 496,500 7,092.8 496,5 7,092.86 496,5 7,092.86 496,5 7,092.8
Expense 6 6 00 00 00 6

Net profit 1,748,26 24,975. 23,498,269 335,689 42,16 602,403 45,78 654,118.1 69,21 988,832
after 9 27 .55 8,269 .84 8,269 3 8,269 .41
interest

20
Pro-Forma Balance Sheet:

For 31st December

Assets: 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018
Current assets: BDT $ BDT $ BDT $ BDT $ BDT $
228
1,491 21, 15,98 28,44 406, 30,98 442,60 51,60 737,16
Cash in Hand ,34
,726 310 4,140 2,218 317 2,607 8.67 1,654 6.49
5
155
Account 2,800 40, 10,85 17,75 253, 19,40 277,20 22,65 323,60
,00
receivable ,000 000 0,000 2,000 600 4,000 0.00 2,000 0.00
0
110
2,000 28, 7,750 12,68 181, 13,86 198,00 14,58 208,28
Inventory ,71
,000 571 ,000 0,000 143 0,000 0.00 0,000 5.71
4
170,0 2,4 170,0 2,4 170,0 2,42 170,0 2,428. 170,0 2,428.
Insurance
00 29 00 29 00 9 00 57 00 57
496
Total Current 6,461 92, 34,75 59,04 843, 64,41 920,23 89,00 1,271,
,48
Assets ,726 310 4,140 4,218 489 6,607 7.24 3,654 480.77
8
Fixed Assets: - - - - -
Land And 3,800 54, 3,800 54, 3,800 54,2 3,800 54,285 3,800, 54,285
Building ,000 286 ,000 286 ,000 86 ,000 .71 000 .71
Equipment ,plant 4,500 64, 4,500 64, 4,500 64,2 4,500 64,285 4,500, 64,285
and machinery ,000 286 ,000 286 ,000 86 ,000 .71 000 .71
Office equipment 180,0 2,5 180,0 2,5 180,0 2,57 180,0 2,571. 180,0 2,571.
& Accessories 00 71 00 71 00 1 00 43 00 43
1,500 21, 1,500 21, 1,500 21,4 1,500 21,428 1,500, 21,428
Machineries
,000 429 ,000 429 ,000 29 ,000 .57 000 .57
500,0 7,1 500,0 7,1 500,0 7,14 500,0 7,142. 500,0 7,142.
Furniture
00 43 00 43 00 3 00 86 00 86
30,00 30,00 30,00 30,00 30,00
Office Supplies 429 429 429 428.57 428.57
0 0 0 0 0
104 104
7,300 7,300 7,300 104, 7,300 104,28 7,300, 104,28
Vehicles ,28 ,28
,000 ,000 ,000 286 ,000 5.71 000 5.71
6 6
3,000 42, 3,000 42, 3,000 42,8 3,000 42,857 3,000, 42,857
Laboratories
,000 857 ,000 857 ,000 57 ,000 .14 000 .14
297 297
Total Fixed 20,81 20,81 20,81 297, 20,81 297,28 20,81 297,28
,28 ,28
Assets 0,000 0,000 0,000 286 0,000 5.71 0,000 5.71
6 6
Preliminary 3,555 50, 3,555 50, 3,555 50,7 3,555 50,785 3,555, 50,785
Expenses ,000 786 ,000 786 ,000 86 ,000 .71 000 .71
440 844 1,19 113,3
30,82 59,11 83,40 88,78 1,268, 1,619,
Total Assets ,38 ,55 1,56 68,65
6,726 9,140 9,218 1,607 308.67 552.20
2 9 0 4
Liabilities:
21
Current liabilities
:
110
Accounts 2,000 28, 7,750 12,68 181, 13,86 198,00 14,58 208,28
,71
payable ,000 571 ,000 0,000 143 0,000 0.00 0,000 5.71
4
Accumulated 1,474 21, 2,949 42, 4,424 63,2 5,898 84,266 7,373, 105,33
Depreciation ,667 067 ,333 133 ,000 00 ,667 .67 333 3.33
3,950 56, 3,950 56, 3,950 56,4 3,950 56,428 3,950, 56,428
Long term Debt
,000 429 ,000 429 ,000 29 ,000 .57 000 .57
169 143
11,83 10,07 8,061 115, 5,739 81,995 3,070, 43,857
Lease ,07 ,99
5,000 9,685 ,074 158 ,670 .29 056 .94
1 6
Less : 1,755 25, 2,018 28, 2,321 33,1 2,669 38,137 3,070, 43,857
Amortization ,315 076 ,612 837 ,404 63 ,614 .34 056 .94
143 115
10,07 8,061 5,739 81,9 3,070 43,857
Lease ,99 ,15 - -
9,685 ,074 ,670 95 ,056 .94
6 8
250 324
17,50 22,71 26,79 382, 26,77 382,55 25,90 370,04
Total Liabilities ,06 ,43
4,352 0,407 3,670 767 8,723 3.18 3,333 7.62
2 4
142 142
Stockholder's 10,00 10,00 10,00 142, 10,00 142,85 10,00 142,85
,85 ,85
equity 0,000 0,000 0,000 857 0,000 7.14 0,000 7.14
7 7
335
1,748 24, 23,49 42,16 602, 45,78 654,11 69,21 988,83
Net profit ,69
,269 975 8,269 8,269 404 8,269 8.13 8,269 2.41
0
440 844 1,19 113,3
Total equity and 30,82 59,11 83,40 88,78 1,268, 1,619,
,38 ,55 1,56 68,65
liabilities 6,726 9,140 9,218 1,607 308.67 552.20
2 9 0 4

Ratio Analysis:

2013-2014 2014-2015 2015-2016 2016-2017 2017-2018

Debt Ratio 57% 38% 32% 30% 23%
Liquidity ratios
Current Ratio 1.86 3.25 3.45 3.26 4.05
Quick Ratio 1.28 2.52 2.71 2.56 3.39
Activity Ratios
Inventory Turnover 10 10 10 10 10
Average collection period 36 36 36 36 36
Total Asset Turnover 1 2 2 2 2
Times Interest Earned Ratio 4.5 48.3 85.9 93.2 140.4
Fixed Payment Coverage Ratio 1.4 6.8 11.5 12.4 18.2
Profitability Ratios
Gross Profit Margin 29% 29% 29% 29% 36%

22
Net Profit before interest Margin 8% 22% 24% 24% 31%
Net Profit Margin 6% 22% 24% 24% 31%
ROA 6% 40% 51% 52% 61%
ROE 0.06 0.19 0.69 1.32 1.75

Cash Flow Statement:

For the Year Ended 31st December

Year 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018
Cash In Hand 1491726 15984140 28442218 30982607
-
Cashflows from operating
activities:
Cash received from 97650000 159768000 174636000 203868000
Customers 25,200,000
Cash paid for Cost of Goods
sold (18,000,000) (69,750,00 (114,120,0 (124,740,0 (131,220,0
0) 00.00) 00.00) 00.00)
Cash paid to Employees
(450,000)
Cash paid for Selling
expenses (300,000) (1,500,000. (2,500,000. (3,500,000 (5,000,000.
00) 00) .00) 00)
Interest Paid
(496,500) (496,500) (496,500) (496,500) (496,500)
Insurance payment
(170,000)
Lease payment
(3,530,565) (3,530,565) (3,530,565) (3,530,565 (3,530,565)
)
Administrative expenses
(450,000) (500,000) (550,000) (650,000) (1,000,000)
Net cash provided by
Operating activities 1,802,935 15,984,140 28,442,218 30,982,607 51,601,654
Cash flows From Investing
activities:
Cash used in Purchasing
office equipment and (180,000)
accessories
Cash used in Purchasing
machineries (1,500,000)
cash used in purchasing
Furniture (500,000)
Cash used in Purchasing
office supplies (30,000)
Cash used in Purchasing
vehicles
23
 (7,300,000)
Cash used in Purchasing
laboratories (3,000,000)
Cash used in Purchasing in
equipment, plant and (4,500,000)
machinery
Cash used in Purchasing land
and buildings (3,800,000)
Cash used in preliminary (3,555,000)
expenses
Net cash provided by (24,365,000
Investing Activities )
Cash flows from Financing
Activities:
Debt receipt
3,950,000
Equity
10,000,000
Lease Financing
4,000,000
Net Cash provided by
Financing Activities 17,950,000

Cash Balance
1,491,726 15,984,14 28,442,218 30,982,607 51,601,654
0
NPV 38,234,215
IRR 48.65%
PBP 3.32 Years
DPBP 3.89 years
Profitability Index 1.41

24
Charts:

ROE ROE ROA ROA

2 0.7
1.8
0.6
1.6
1.4 0.5
1.2 0.4
1
0.8 0.3
0.6 0.2
0.4
0.2 0.1
0 0

Owners' Equity
Quick Ratio Quick Ratio
Debt Financing
4
3.5
3
38.78%
2.5 45.90%
2
1.5
1
15.32%
0.5
0

Net Profit Margin Net Profit Margin

35.00%

30.00%

25.00%

20.00%

15.00%

10.00%

5.00% 25

0.00%
2013-2014 2014-2015 2015-2016 2016-2017 2017-2018