FIRST TWO YEARS OF OPERATIONS OF A NEWCO

In February 2015 we have incorporated a Limited Liability Company (LLC) , with the purpose of
executing projects in the field of “Optimization of Energy Consumption” . We have paid up an
Equity of 25.000 €.

During the first year of Operations we have signed 2 Contracts :

1. A First Contract (CONTRACT 1) for Engineering Services , to optimize the Heat Balance of a
Food and Beverages Production Plant :
a. Contract Price = 60.000 €
b. Contract Duration = 10 months, from 1.3.2015 to 31.12.2015
c. Engineering Manhours = 1.000
d. Unit Cost = 50 € /hr
e. Expected Progress of Works : 10 % per month
f. Payment : 6.000 € per month

2. A Second Contract (CONTRACT 2) to substitute 5 Heat Exchangers in an Industrial Plant :

a. Contract Price = 250.000 €
b. Contract Duration = 18 months starting from 1.7.2015
c. Cost of every Heat Exchanger = 30.000 €
d. Cost of Engineering and Project Management Services : 15 % of the equipment cost
(to be spent through 18 equal monthly costs during the entire contractual period of
18 months)
e. Installation Cost for every Heat Exchanger : 10 % of the Equipment Cost
f. The Heat Exchangers will be purchased after the first 3 months, and will be
delivered within 9 months on the installation site, and the relevant cost is due to be
paid to the Supplier on delivery
g. The Installation lasts for three months, and is paid to the installation firm through 3
equal monthly payments.
h. Contract Payments :
 10 % of the Contract Price upon Contract Signature
 20 % of the Contract Price upon issue of the Purchase Order for the 5
Heat Exchangers
 50 % of the Contract Price upon delivery in field of the Heat
Exchangers
 15 % in 3 equal monthly installments, every month during the
installation
 5 % upon completion of the project, at the end of the 18th month
In addition to the above indicated Costs and revenues for the 2 contracts under execution, the
Company bears the following costs :

A. Monthly G&A Costs equal to 1000 €

B. Offices Rental/ consumptions/maintenance Costs equal to 2000 €
C. Fixed Assets 5.000 € (spent in 2015 – no amortization)

BASED ONLY ON THE COSTS AND REVENUES ABOVE, PLEASE DEFINE :

 The P&L on 31.12.2015 and on 31.12.2016
 The Assets & Libilities on 31.12.2015 and on 31.12.2016