Salient Features

of
“Business Plan of Vajra Eco Resort Pvt. Ltd.”

Located in Nepal, the country of Himalayas, Vajra Eco-Resortaims to become an exemplary eco-friendly
hospitality businessprovider, which provides unique and personalized best quality services to its customersby
taking human and nature friendlyprofessional approach.

Location of the project : Tatopani VDC-7, Duguna, Sidhupalchok, Nepal

5 kms near to Nepal-China Border

Registered Office : Tatopani VDC-7, Duguna, Sidhupalchok, Nepal

Contact : +977-01-6210091, 9851023766, 9801023866

maarten.olthof@gmail.com, olthof@vajra.nl,
ramkajipaudel@gmail.com

Present Number of shareholders : 12

Working schedule : 365 Days / annum, 16 hours/day

Paid up capital : NPR 46,250,000[€402,375]

Operational Phases : First Phase: Nov 2013 to Nov 2014

Full Phase: Nov 2014 Onwards

Total Capital/Investment : NPR 200,000,000[€ 1,740,000]

First Phase: NPR 120,000,000 [€ 1,044,000]

Second Phase: NPR 70,000,000 [€ 609,000]

Contingency: NPR 10,000,000 [€ 87,000]

Capital Structure : Total Equity – NPR 160,000,000 [€ 1,392,000]

Total Loan – NPR 40,000,000 [€ 348,000] @ 13%

Capital on call for new shareholders : NPR 50,000,000 [€ 435,000]

Offerings and Services

 Lodging (Suites, Delux Rooms, Standard Rooms, Tents and Dormitory shared rooms)
 Multicusine Food and Drinks/Bar

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  Bakery and Coffee Bar
 Multipurpose hall with program/event management and catering service
 Business Support Services (Executive room, Secretariat room, Meeting Room)
 Office and IT support
 Open Ampitheater and Children’s Park
 Meditation Center and Religious Spots
 Health club (Gym, Sauna, Jacuzzi, Massage)
 Swimming Club
 Adventure Sports Package (Bunjy, Canoing, High Ropes, Natural Rock Climbing)
 Solar Treking, Camping and Hiking
 Tibet Tour facilities
 Transportation Service

Seven core principles of the resort:

 People: Corporate Social Responsibility

o A realizable dream that cares for human and societal values
 Planet: Sustainable Entrepreneurship
o A venture that leaves no ecological footprint and lessens the negative externalities
 Profit: Wealth Optimisation
o A business that creates wealth by offering win-win situation to all beings
 Innovation in business
o An entity that values and encourages new ways
 Promotion of Eco-Tourism and Spiritual Tours
o An experience that lasts for lifetime
 International co-operation
o A collaboration that creates good synergy with global reach
 International facilities
o A standard that strives for customer’s delight

Mission:

The resort aims at enhancing the stakeholder value by taking human and nature friendly professional approach,
exceeding the expectations of its customers and continuosly improvising on the understanding of overall
“beings” in and around the area.

Vision

“To be pioneer and premier people-energy-eco sensitive-friendly hospitality business entity in the globe which
strives to achive excellence in the achivement of customer satisfaction through creation and delivery of unique
and personalized assorted hospitality services”

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Objectives:

The main objective of the resort is to create and promote the domestic as well as international tourism business
opportunities in Nepal by designing, managing and providing various tourism related facilities and activitiesThe
basic objectives of resort while striving to achive the mission shall be followings:
 Adding socio-economic value
 Creating and providing unique and personalized tourism and hospitality related services which use
alternative form of energy and are eco-friendly.
 Continuously improvising the process and service provision to achive excellence in achivement of
customer satisfaction and societal well-being.
 Striving to create eco-friendly and energy saving business concept.
 Conserving local nature, culture, way of life and activities and sustainably utilizing the same for the
promotion of soci-economic status of the locals by generating quality revenue.
 Maximizing the value of ownership of shareholders and contribute a part of it for the social cause – thus
fulfilling corporate social responsibility as good corporate citizen of the country.

Values:

Vajra Eco-Resort, its activities, operations and business stands on high moral and ethical values as listed below:

 Respect towards nature and human values, culture and overall well-being.
 Dedication towards development of Society and Nation as a whole
 Thorough commitment and continual improvement efforts dedicated towards Customer’s Delight
 Non Discrimination against Gender, Race, Culture, Region, Profession and health condition
 Respect towards Individuality and Idiosyncrasies of all beings and units.
 Conservation and sustainable use of Environment, ecology and eco-system
 Use of sustainable, re-newable and alternative form of energy in operation of business.
 Respect towards creativity and innovative thoughts and ideas.
 Equity in providing growth opportunities to all.

Ecological and Unique features of the Resort

 Solar Hot Water System in all the rooms and facilities of the resort
 Solar PV Plant to supply LED light in and around the resort, fans, TV and Fridge
 Solar Cooker ( 2 direct cooking scheffler dishes with Metal storage to enable night cooking and early
morning breakfast)
 Cooking for staying guests as well as visitors and staff will be done with a Parabolic Solar Concentrator
of 43 m2 , with energy preserving facility for night, clearly visible on the roof terrace of the restaurant.
 Solar steam water heater for swimming pool

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  Scheffler dish to supply steam to sauna and steambath
 10 m3 Biogas plant for generation of alternative fuel in absence of solar power, that will also take care
of kitchen waste, human excreta, cow-dung and chicken poultry waste
 Rainwater harvesting will be incorporated and such water will be filtered and recycled for appropriate
use.
 The whole complex will be zero discharge and there would be a biological waste water treatment plant
 Use of locally available eco-friendly construction materials
 Ozone water treatment will be used for swimming pool instead of chlorine
 Vertical axis windmills will be used to pump water from storage tank to the height located building
 Completely solar powered Treking, Hiking and Camping facilitites to the serene natural sites with clear
view of Himalayan Range.
 Involvement of youths and students as interns- specially from Vajra Academy, for the provision of
opportunity to learn from the example of sustainable entrepreneurship and self-sufficiency.
 Opportunity to observe typical Nepali culture, tradition and folklores in and around the village area of
the resort.
 A perfect blend of natural and man-made modern facilities and services that offers unique experience of
lifetime for visitors.

Profile of present shareholders:

One of the best feature of this project is that the investors for all walk of lifes are involved in the project –
Nepalese and foreigners. The present shareholders have blend of expertise and experience in the fields of travel
and eco-tourism, religious tourism, hospitality business, alternative energy engineering, architect and
engineering, social enterprising, medical science, business and financial management, national politics. A brief
profile of the three foreign investors are as follows:

Deepak Gadhia M.Sc.

India

Mr. Gadhia was educated as a process and Environmental Engineer at the TFH
Germany and post graduated in Energy Conservation And Energy Management from
MIT USA.

A Social Entrepreneur and a pioneer in the field of Solar Energy, he has been very active in the renewable
energy field since three decades and has successfully commercialized renewable energy based projects:

 His company, Gadhia Solar, developed the first solar steam cooking system in India and installed,
among many others, the worlds’ largest steam cooking system at Shirdi Temple, producing up to 50,000
meals per day
 Installed India’s first & largest solar powered air-conditioning system (100 ton refrigeration system) for
the Kailash Cancer Hospital (MSA), in Goraj India

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  He developed a 430m3 biogas generation, treatment and bottling facility used for community cooking at
the Muni Seva Ashram.
Awards

Mr. Gadhia is an authorised Energy Auditor, was a speaker at conferences all over the world and has earned
international recognition:

 Blue Sky Award for Global Top Ten Technologies, supported by the UN
 Recognised by the Clinton Global Initiative Foundation for outstanding work in the areas of renewable
energy & social engineering to make the solar cookers affordable to the rural needy through the Smoke-
free village projects in A.P
 SESI Award for Solar Entrepreneurship
 Surya Mitra Award from Prince India.

Christian Müller
Switzerland/The Netherlands

Mr. Müller was educated in architecture at the TechnischeHochschule in Zürich –

Switzerland.

With his architectural office, Christian Müller Architects – Rotterdam with a branch
office in Switzerland, he gained international recognition with his ‘Underground
Villa’ in the world famous Swiss village of Vals.

He writes regularly for magazines and newspapers and he lectured all over the world, among others at the GSD
Harvard University – USA, at Chandigarh College of Architecture – India, at the Technion University in Haifa
– Israel and at a symposium in Kathmandu about Architecture and Tourism.

Awards:

 Green Good Design Award, Chicago – USA

 iF Product Design Award, Hannover – Germany
 Magazine Wallpaper Design Awards, London – UK
 1st prize European tender for a new City Hall, Utrecht – the Netherlands
 1st prize competition 'New City Hall', Rotterdam – the Netherlands.

Maarten Olthof M.Sc.

The Netherlands

Mr. Olthof was educated in biology/ecology at the State University of Utrecht – The
Netherlands. As an ecologist Mr. Olthof has been active in Eco Tourism for more than

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25 years, developing and guiding nature treks all in more than fifty countries with thousands of travellers. In
2003 he walked a long-forgotten pilgrimage trail through India and Nepal along the oldest and most important
Buddhist pilgrimage sites and wrote a book about it. Together with Ramkaji Paudel he founded the Vajra
Foundation, developing sustainable and eco-projects in Nepal in education, health and poverty alleviation. He
lectures at various educational institutions and is a Buddhist teacher.

Awards

 Himshikhar Foundation Award for Social Service, given to ‘personalities with an outstanding
contribution to the Nepal society’
 KPA Award for contribution to poverty elevation by the Dutch National Commission for International
Cooperation and Sustainable Development
 Recommended by the UNHCR for realising the largest solar cooking programme in the world, with a
1.2 million euro budget and 85,000 users in Bhutanese refugee camps in Eastern Nepal
 Elected by thousands of travellers in the Netherlands as the best tour organiser
 Nominated for the Best Spiritual book in 2011 in the Netherlands.

Publications

 Writer of several books, among others about Buddhist pilgrimage in Nepal and India
Co-author of a range of Travel Guides for Nepal, India and Madagascar.

______________________________________________________________________________

Financial Highlights

Projected Income Statement (5 years)

Particulars Year 1 Year 2 Year 3 Year 4 Year 5

Total Revenue (NPR) 94507351 143864400 158706307 172147403 194801738
Total Revenue (EUR) 820092 1248389 1377181 1493816 1690400

Operating Profit (NPR) 10615549 29413971 47977262 57454022 87200996

Operating Profit (EUR) 92117 255241 416325 498560 756690

EBIT (NPR) (2824758) 6187321 24750612 36181847 64725306

EBIT (EUR) (24512) 53691 214774 313970 561657

Profit Before Tax (NPR) (4440267) 1050644 19946746 31749773 60680328

Profit Before Tax (EUR) (38531) 9117 173089 275510 526556

Profit After Tax (NPR) (4440267) 1050644 15807465 23812329 45510246

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Profit After Tax (EUR) (38531) 9117 137170 206633 394917

Previous Year's Balance

(NPR) (20,000,000)

Accumulated Profit (NPR) (24,440,267) (23,389,623) (7,582,158) 16,230,172 61,740,418

Accumulated Profit (EUR) (212081) (202964) (65794) 140838 535755

Key performance indicators

Key Indicators Year 1 Year 2 Year 3 Year 4 Year 5

Contribution Margin 65% 73% 74% 75% 77%

Total Expense Ratio 88.77% 79.55% 69.77% 66.63% 55.24%

Operating Profit Margin -2.99% 4.30% 15.60% 21.02% 33.23%

Net Profit Margin -4.70% 0.73% 9.96% 13.83% 23.36%

Debt Service Coverage Ratio

(DSCR) 4.43 3.88 6.33 7.90 12.00

Break Even Sales (NPR) 56,764,900 84,988,054 94,073,997 95,866,883 81,516,288

Return on Net Fixed Assets -4.33% 1.02% 15.40% 23.20% 44.35%

Return on Total Equity -4.93% 0.66% 9.88% 14.88% 28.44%

Return on Total Capital -3.17% 0.53% 7.90% 11.91% 22.76%

 NPV of 10 years @ 18.60 % = NPR 310805924 [€ 2,704,011]

 IRR of 10 years = 19.25 %
 Payback Period = 5 years 6 months

Pictures and Graphics:

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 Figure 1: 3D Drawing of the Resort veiw from North West Side

Figure 2 3D drawing of one of the Building

Figure 3 3D drawing of the building with restaurant

Figure 4 Parking Area

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Figure 5 Pictorial representation of the Health Club Area

Figure 6 Pictorial Representation of Steam Room

Figure 7 Camping Site - Gauri Parbat Himalayan Range at the Background

Figure 8 BhairabKunda Lake - a site for Treking from Resort

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Figure 9 Natural Rock Climbing Site at the Resort

Figure 10 Solar Cooker Test for Solar Trek to Bhairabkunda

Figure 11 Duguna Fort - a site of Hiking from Resort and the Solar picnic organized

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Figure 12 Team exploring new treking trail from Resort (the trekking was probably the first solar trekking so far - using only solar energy for cooking and
warming)

Figure 13 Gauri Parbat Range at the treking train from Resort

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