The report is based on assumptions that the company can use for expansion

1. Overview of Company.
Selco Solar Light Pvt limited is for – profit social enterprise based in Bangalore, India. Selco
has played an important role in improving standard of living of poor households in rural India
especially in the states of India like Karnataka, Maharashtra, Kerala, Tamilnadu, Bihar by
providing solar energy based intervention, low smoke stove and many more solar products by
providing them at very low cost and reducing the gap in access to energy.
SELCO delivers sustainable decentralized energy solutions for the poor in a manner
that not only creates value for the end user but also ensures that the solution is a long
term one.
Selco is endorsing Swachh Bharat Abhiyan, by not only helping cleaning campaigns
but also by promoting and advancing Eco friendly way of generating electricity i.e.
solar products.
Not only this but Selco is helping hand by providing them with Milking Machines,
Sewing Machine, Blacksmith Fan Blowers, Pottery Wheels, Photocopying and
Printings etc and creating employment.
Staff at SELCO reflects a mix of the society: in terms of gender, caste, colour and
religion and more importantly over 90% of SELCO’s 450 employees are from the
local areas they serve.
With all this Selco has been earning Revenue at 20%.
CSR + Energy Access + Sustainability.
FinancialExpansion Plans.
Selco receives its funds in Selco Foundation and then the funds are transferred and used by
other of it other organisations i.e. Selco India, Selco Incubation program*. Currently Selco
has 510 employees working in 67 Energy centres cover population of 1 Million (oct 2018
figures)
*As no annual reports of Selco ltdis not foundon sites it is assumedthat Selco make mergedreports of Selco Solar Light Pvt limited, Selco
foundationandSelco Incubationandannual reports of Selco foundationis assumedto be annuals reports ofSelco Solar Light Pvt ltd.

2. Hiring More Employees
Selco should hire more employees to expand their markets. By hiring more employees, they
could extent market in rest of India. To reduce of hiring cost, Selco can hire people from
villages and train them, this could also open employment opportunities in rural areas. Current
there are 510 employees with reach of 1 million of people increasing their employee base
could increase this by 3 times.
Applying for more funds
Companies like Selco as more inclined towards funds rather than revenue. Funds are key
element in businesses like Selco. Selco should apply for funds not only from government but
from other foreign investors, NGO’s etc. The company has already taken step developing
online platform which is under development. This could help company is getting more funds
and increasing companies reach to other parts of India.
Reducing the costof material Assembling
Selco should look after to reduce to cost of material, cost of assembling and cost of transport
without sacrificing quality. Different methods to do it, Proper project management, Good
receipts inspection, hiring and training high skilled employees, vendor management etc
Focusing on client base
Company should look after the client based. Company should target areas where Farming,
Animal husbandry, Fishing etc is main occupation. By doing this company will get good
Return on Investments. Moreover, company should even start increasing their reach to urban
areas this will increase their revenues and profits which they can re-infuse in company for
expansion.
Usage of funds
Selco’s balance shows that there are lots of funds which are not used properly, Selco could
use this fund in expanding their markets. Selco Should increase the cost of Research &
Development which will enhance the skills of their labours and again help in expansion of
markets.

3. Finance inflow, and outflow considering expansion budget is Estimated by financial modal for Selco ltd:-
Balance Sheet
(Unless otherwise specified, all
financialsare in INR)
FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025
Funds and Liabilities
Non Corpus
Funds
324019933 16200996.7 17011046.54 17861598.86 18754678.8 19692412.75 20677033.38 21710885.05
Current Liabilities
current
liabilities
32444828 32444828 32444828 32444828 32444828 32444828 32444828 32444828
Total 356464761 48645824.7 49455874.54 50306426.86 51199506.8 52137240.75 53121861.38 54155713.05
Properties and Assets
Fixed assets 5345203 4900682.7 4446162.4 3981642.1 3507121.8 3022601.5 2528081.2 2023560.9
Current Assets
Current assets 20449357 20449357 20449357 20449357 20449357 20449357 20449357 20449357
cash and bank 330670201 570841357 862325646.1 1210534325 1621391555 2101379857 2657589475 3297771983
Total 356464761 596191397 887221165.5 1234965324 1645348034 2124851815 2680566914 3320244901

4. Receipts and Expenditure Statement
(Unless otherwise specified, all
financialsare in INR Mn)
FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025
Income
Grands - Foreign 464787594 488026974 512428322.4 538049738.5 564952225.4 593199836.7 622859828.5 654002820
Donations - Local 28686528 30120854.4 31626897.12 33208241.98 34868654.07 36612086.78 38442691.12 40364826
portable solar lights for
Integrated energy center
Interest received 15033766 26847488.2 46637591.52 70655896.91 99348292.04 133202927.8 172753963.9 218585636
Interest received- Other
source
57507 48109.82 48109.82 48109.82 48109.82 48109.82 48109.82 48109.82
Professional Income 281060 281060 281060 281060 281060 281060 281060 281060
Total 508846455 545324486 591021980.8 642243047.2 699498341.4 763344021.1 834385653.4 913282452
Expenditure
Project Cost 286512119 280781877 275166239.1 269662914.3 264269656 258984262.9 253804577.6 248728486
Research & Development 3376242 3511291.68 3651743.347 3797813.081 3949725.604 4068217.372 4190263.894 4315971.8
Admin Cost 22773443 22773444.1 22773445.1 22773446.15 22773447.2 22773448.25 22773449.3 22773450
Total 312661804 307066612 301591427.5 296234173.5 290992828.8 285825928.5 280768290.8 275817908
EBID 196184651 238257874 289430553.3 346008873.7 408505512.5 477518092.6 553617362.5 637464544
Depreciation 1358336 544520.3 554520.3 564520.3 574520.3 584520.3 594520.3 604520.3
EBIT 194826315 237713353 288876033 345444353.4 407930992.2 476933572.3 553022842.2 636860023
Interest
EBT 194826315 237713353 288876033 345444353.4 407930992.2 476933572.3 553022842.2 636860023
Tax
PAT 194826315 237713353 288876033 345444353.4 407930992.2 476933572.3 553022842.2 636860023

5. Cashflow statement
(Unless otherwise
specified, all financials
are in INR Mn)
FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025
Opening Balance
Cash 24876 40187 40187 40187 40187 40187 40187 40187
Bank 6800052 4810982 4810982 4810982 4810982 4810982 4810982 4810982
Fixed Deposit 113636573 325819031 565990188.4 857474477.1 1205683156 1616540386 2096528688 2652738306
Receipts during the
year
fixed Deposits
Grands Received 464787594 488026974 512428322.4 538049738.5 564952225.4 593199836.7 622859828.5 654002820
Donation Received 28686528 30120854.4 31626897.12 33208241.98 34868654.07 36612086.78 38442691.12 40364825.67
Interest Received -
From Bank
9370879 26847488.2 46637591.52 70655896.91 99348292.04 133202927.8 172753963.9 218585636.4
Interest Received -
From Other
Sources
50122 48,109.8 48,109.8 48,109.8 48,109.8 48,109.8 48,109.8 48,109.8
Professional
Income
275000 275000 275000 275000 275000 275000 275000 275000
Net Receipts 503170123 545318426 591015920.8 642236987.2 699492281.4 763337961.1 834379593.4 913276391.9
Total 623631624 875988626 1161857278 1504562633 1910026606 2384729516 2935759450 3570865867
Payments during
the year
Project
cost/Research and
Development cost
265115331 280781877 275166239.1 269662914.3 264269656 258984262.9 253804577.6 248728486.1

6. Administrative
cost
23889828 22773444.1 22773445.1 22773446.15 22773447.2 22773448.25 22773449.3 22773450.35
Fixed asset
purchased
2464317 100000 100000 100000 100000 100000 100000 100000
TDS fy 2017-18 1491948 1491948 1491948 1491948 1491948 1491948 1491948 1491948
Net Payments 292961424 305147269 299531632.2 294028308.5 288635051.2 283349659.1 278169974.9 273093884.4
Closing Balance
Cash 40187 40187 40187 40187 40187 40187 40187 40187
Bank 4810982 4810982 4810982 4810982 4810982 4810982 4810982 4810982
Fixed Deposit 325819031 565990188 857474477.1 1205683156 1616540386 2096528688 2652738306 3292920814
Total 623631624 875988626 1161857278 1504562633 1910026606 2384729516 2935759450 3570865867

7. Assumptions
(Unless otherwise specified, all financialsare in INR Mn) FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025
Growth in Revenue 96% 25% 25% 25% 25% 25% 25% 25%
Funds 5% 5% 5% 5% 5% 5% 5%
Current liabilites 10% 10% 10% 10% 10% 10% 10% 10%
Project cost reducing 2% 2% 2% 2% 2% 2% 2%
Research and development 4% 4% 4% 4% 3% 3% 3%
employee cost included in admin cost 5% 5% 5% 5% 5% 5% 5%
fixed assets CAPEX 5345203 100000 100000 100000 100000 100000 100000 100000
Dep 10% 10% 10% 10% 10% 10% 10%
life 10 10 10 10 10 10 10
1 FY 2019 100000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
2 FY 2020 100000 - 10,000 10,000 10,000 10,000 10,000 10,000
3 FY 2021 100000 - - 10,000 10,000 10,000 10,000 10,000
4 FY 2022 100000 - - - 10,000 10,000 10,000 10,000
5 FY 2023 100000 - - - - 10,000 10,000 10,000
6 FY 2024 100000 - - - - - 10,000 10,000
7 FY 2025 100000 - - - - - - 10,000
10,000 20,000 30,000 40,000 50,000 60,000 70,000

8.  As no specific breaking given it is assumed that Fixed Deposit amount is used for payment and again
balanced amount is reinvested in Fixed Deposit.
 Depreciation is calculated on Straight Line Method.
 Missing information is assumed to be remained same.