Project Profile - Astha Feed Industries Ltd. [PDF]

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PROJECT PROFILE Of ASTHA FEED INDUSTRIES LTD.



Corporate Office: Mohona, House # 28, Road # 15, Sector # 15 Uttara, Dhaka-1230.



Table of Contents Contents



Page



Executive Summery



1 -3



Chapter – I Organization and Management



4-7



Chapter – II Market Aspects



8 –11



Chapter – III Technological Aspects



12 – 14



Chapter – IV Financial Aspects



15 – 17



Chapter – V Cost of the Project



18 – 21



Chapter – VI Economic Evaluation of the Project



22 – 22



Annexures:



23 - 38 I-XXIX



Executive Summary 1.



Name of the Project



:



ASTHA FEED INDUSTRIES LTD.



2.



Location



:



Chorkamaldi, Sonargaon,



Narayangonj 3.



Constitution of the Firm



:



Private Limited Company



4.



Authorized Capital



:



Tk. 1000 Lacs divided into 10,00,000 shares of Tk.100.00 each.



5.



PROJECT’S DESCRIPTION Considering the increasing market demand of the poultry and fish feed in Bangladesh the sponsor of Ashta Feed Industries Ltd. are going to establish a new project with production capacity up-to 560 M.Ton poultry/fish/cattle feed per day at 100% capacity utilization on the basis of two shift operation per day in 300 working days per year. The proposed machinery for the project will be imported from Taiwan/Germany/China origin. After completion of the proposed feed Mill project it will create job opportunity for 222 person. The total cost for the proposed project has been estimated at Tk. 6415.25 lac. (Excluding IDCP).



6.



SPONSORS & MANAGEMENT Name



Address



Mosharaf Hossain Chowdhury S/O. Ibrahim Chowdhury



2012,Asadganj,Pathaorgh ata, Lamabazar,Kotowali,Chitt agong



Md. Gias Uddin Khan S/O. Md. Idris Khan



House/Holding:Pathan Bari,Rangunia, P.O:Rangunia4360,Rangu nia Pourosova, Rangunia, Chittagong



Moona D/O. Mojaher Meah



Kayukkhali, Teknaf, Coxs Bazar



Nejhatara Shaheen Spouse Of -Md. Gias Uddin Khan



House/Holding:Pathan Bari,Rangunia, P.O:Rangunia4360,Rangu nia Pourosova, Rangunia, Chittagong : House: 262, Belaler Bari, Road: Mayakanon R/A, P.O: Faidabad Madrasha1230, Dakshinkhan, Dhaka



Md. Shalah Uddin S/O. Md. Abdus Samad



Educational Qualification



Status



Extent of Share



MBA



Chairman



50%



M.Sc (Statistics)



Managing Director



20%



Director



20%



BBA



M.Com



5%



(Management)



Director



M.Com (Accounting)



Director



5%



7.



COST OF THE PROJECT The Total cost of the Project has been estimated at Tk.6678.85 Lac including Interest During Construction Period. Brief are as follows: (Amount Tk. In “000”) Item



Total Cost



Land



Rented



Building & Other Construction



115625



Machinery & Equipment's



375900



Working Capital



100000



Other Costs



50000



Total Cost of the Project



8.



641525



FINANCING PLAN AGAINST TOTAL COST (Amount Tk. in “000”) Total Debt Equity against total Cost of the project Amount



%



Term Investment



367336



55%



Owner's Equity



274189



45%



641525



100%



Total



9.



ESTIMATED EARNING FORECAST (Amount Tk. in “000”) Item Capacity Utilization



1st Year



2nd Year



3rd Year



4th Year



5th Year



60%



75%



80%



80%



80%



2,500,250



3,220,725



3,685,440



3,685,440



3,685,440



Gross Profit



482,298



609,361



689,914



682,912



675,910



Operating Profit



344,284



424,102



483,161



481,687



480,581



Net Profit before Tax



188,269



245,741



284,885



287,833



290,044



Net Profit after Tax



160,029



208,880



242,152



244,658



246,537



Retained Earnings



160,029



208,880



242,152



244,658



246,537



Gross Profit to Sales



19.29%



18.92%



18.72%



18.53%



18.34%



Operating Profit to Sales



13.77%



13.23%



13.11%



13.07%



13.04%



Net Profit to Sales (before Tax)



7.53%



7.63%



7.73%



7.81%



7.87%



Net Profit to Sales (after Tax)



6.40%



6.49%



6.57%



6.64%



6.69%



Sales Revenue



10.



DEBT-SERVICE COVERAGE RATIO The Project is expected to generate such amount of revenue so that the Debt-Service Coverage ratio will be1.41 at 1st year of operation, 1.61 at 2nd year of operation, 1.76 at 3rd year of operation, 1.85 at 4th year of operation & 1.92 at 5th year of operation.



11. BREAK-EVEN CAPACITY The project on its implementation is expected to be at Break-even at-16% of rated operation of 3 rd Year. 12. Internal Rate of Return (IRR)



:



26.73%



13. Employment Generation



:



222 People



14. Cost per job created



:



Tk. 39.41 Lac



15. Pay-back Period 16.



:



2.16 years



CONTRIBUTION TO GDP The project on its completion of the is expected to be make contribution to GDP-Tk.3280.12 Lac, Tk. 3363.92 Lac & Tk. 5763.18 Lac for Ist, 2nd & 3rd year respectively.



17.



MARKET ASPECT The product of the proposed project will be used by the poultry, fish and cattle farmers and commercial poultry, fish and cattle firms throughout the country. There is a huge gap between production & supply of the feed items. As a result, Bangladesh has to incur a huge amount of foreign currencies every year to import poultry, fish and cattle feed from abroad.



18.



CONCLUSION AND RECOMMENDATIONS The feasibility study of the proposed project has been conducted & analyzed from the viewpoint of marketing, technical, management and financial aspects and found the project viable in all respects. The project after implementation will generate direct employment to 200 persons and cost per job to be created would be Tk.39.41lac.



Organization & Management 1.1.



LEGAL STATUS OF THE COMPANY The Company is being incorporated with the Registrar of Joint Stock Company and Firms, Government of the People’s Republic of Bangladesh as a Private Limited Company under the name and style of M/S. ASHTA FEED INDUSTRIES LTD. The authorized capital of the company is Tk. 1000.00 Lac divided into 10,00,000 shares of Tk. 100.00 each.



1.2.



PARTICULARS OF THE SPONSORS



Name Mosharaf Hossain Chowdhury S/O. Ibrahim Chowdhury Md. Gias Uddin Khan S/O. Md. Idris Khan



2012,Asadganj,Pathaor ghata, Lamabazar,Kotowali, Chittagong House/Holding:Pathan Bari,Rangunia, P.O:Rangunia4360,Ra ngunia Pourosova, Rangunia, Chittagong



Moona D/O. Mojaher Meah



Kayukkhali, Teknaf, Coxs Bazar



Nejhatara Shaheen Spouse Of -Md. Gias Uddin Khan



House/Holding:Pathan Bari,Rangunia, P.O:Rangunia4360,Ra ngunia Pourosova, Rangunia, Chittagong : House: 262, Belaler Bari, Road: Mayakanon R/A, P.O: Faidabad Madrasha-1230, Dakshinkhan, Dhaka



Md. Shalah Uddin S/O. Md. Abdus Samad



1.3.



Address



Educational Qualification



Status



Extent of Share



MBA



Chairman



50%



M.Sc (Statistics)



Managing Director



20%



……….



Director



20%



……….



5% Director



M.Com (Accounting)



Director



5%



BACKGROUND AND EXPERIENCE OF THE SPONSORS: The Business experience and background of the Directors of the project are given below: Mosharaf Hossain Chowdhury Mosharaf Hossain Chowdhury, the Chairman of the proposed Project Company is now-a-days a very well known businessman from the eastern Bangladesh settled at the capital City Dhaka. Starting the carrier with trading both international & domestic he slowly shifted to establishment of industries like, feed mill, breeders, poultry & hatchery, frozen fish, food & beverage, pharmaceuticals, flour meals etc. Under the banner of Ibratas Trading Company, he pioneered the import of feed ingredients like Poultry meal, fish meal, fish oil, MCP, DCP, DDGS, maize, dry fish, mastered oil cake, frozen fish, soya bean meal etc. In between the establishment of these agro-based trading company he overviewed the demand for poultry/fish/cattle feed in the country, its supply depend on import, and the opportunity of feed marketing he is willing to established a feed mill at Sonargaon Narayangonj, a breeders & poultry hatchery project at



Nalitabari, Sherpur having capacity to grind 2,00,000 M. Ton feed and 48,00,000 broiler and layer chicks per annum. Since he felt that as a well to do man in the society he has some responsibility towards the down trodden men of the society and the country at large he decided to go for large industries for generating huge employment and contributing to the GDP and National Income of the country whatever the share may be. These two industries will create employment of about 500 men and women belonging to the lower strata of the society. Apart from these industries establishment of a pharmaceutical company and a flour mill is now under consideration and work on the same may start soon. Mr. Mosharaf Hossain Chowdhury is still young, energetic and has been rated as all through dynamic in thoughts and works. Md. Gias Uddin Khan Md. Gias Uddin Khan, is the owner of H & K Feed Product, and a good business associates of Mr. Mosharaf Hossain Chowdhury, is a young, energetic and dynamic person and is a proposed Managing Director and a member of the Board of Directors of the proposed company. The huge international and domestic trading business of the company is looked after single handedly by him under the leadership of the Managing Director of the Ibratas Trading Company Mr. Mosharaf Hossain Chowdhury. As an active member of the company he participates and takes part in the decision making meetings and substantially contribute to the growth of the companies. Moona Mrs. Moona is another Director & spouse of Mr. Mosharaf Hossain Chowdhury Chairman of the proposed company. She is a young, energetic and dynamic person and is a proposed member of the Board of Directors of the proposed company. As an active participant of the meetings of the Board of Directors she contributes to the growth and betterment of the proposed company. Nejhatara Shaheen Mrs. Nejhatara Shaheen is one of the Director & spouse of Mr. Gias Uddin Khan, Managing Director of the proposed company. She is a young, energetic and dynamic person and is a proposed member of the Board of Directors of the proposed company. As an active participant of the meetings of the Board of Directors she contributes to the growth and betterment of the proposed company. Md. Shalah Uddin Mr. Shala Uddin is the owner of the Taqwa Agro Trading Corporation and good business associates of Mr. Mosharaf Hossain Chowdhury Chairman, is a young, energetic and dynamic person and is a proposed Director and a member of the Board of Directors of the proposed company. The huge international and domestic trading business of the company is looked after him under the leadership of the Managing Director of the Ibratas Trading Company Mr. Mosharaf Hossain Chowdhury and Mr. Gias Uddin Khan. As an active member of the company he participates and takes part in the decision making meetings and substantially contribute to the growth of the companies.



1.4.



MANAGEMENT AND ORGANIZATION The overall management of day-to-day affairs of the company will be looked after the Chairman and Managing Director who will be assisted by another Director. Already Ibratas Trading Company has been set up by well experienced & qualified manpower. So, the company will not face any problem to operate the proposed Feed Mills Project.



1.5.



ADMINISTRATIVE AND OPERATING EMPLOYEE For smooth functioning of the day-to-day affairs including management of operation of the proposed Feed Industry on completion, a total 150 manpower has been estimated to be required of which 25 manpower will be involved for general administration of the office and 125 operative personnel for factory shed including supervisory officers, staff, sales & marketing and others.



a. Personnel required for Factory Shed Position



No(s)



Salary/ Month



Production Manager



1



Tk.50,000



Asstt. Production Manager



2



Tk.35,000



Mechanical Engineer



2



Tk.25,000



Electrical Engineer



2



Tk.18,000



Supervisor



4



Tk.15,000



Foreman



6



Tk.12,000



Quality Controller



4



Tk.10,000



Electrician



4



Tk.8,000



Generator/Boiler Operator



4



Tk.10,000



Driver Sub - Total :



6 35



Tk.10,000



Highly Skilled



40



Tk.8,000



Skilled Semi – Skilled



50 65



Tk.7,000 Tk.6,000



Sub - Total :



155



GRAND TOTAL :



190



OPERATOR/ LABOR :



b. Administrative Personnel Position General Manager



No(s)



Monthly Salary



1



Tk.100,000



Marketing Manager



2



Tk.50,000



Marketing Officer



10



Tk.20,000



Accountant



3



Tk.20,000



Purchase Officer



2



Tk.15,000



Sales Officer



5



Tk.15,000



Office Executive



4



Tk.10,000



Peon Guard/Mali



3 2



Tk.8,000 Tk.7,000



Total



32



Organization Chart Chairman Managing Director Director Executive Director General Manager Factory Manager



Mktg. Manager



Operational StaffAccounts & Admin. Staff Mktg. & Sales StaffProduct Dev. & Research.



Market Aspects 2.1.



INTRODUCTION Bangladesh is an Agro-based country. Its agricultural products are used as basic raw materials of the industrial products such as Poultry feed, Fish Feed, Shrimp Feed and cattle feeds. The present study attempts to examine the scenario of poultry industry and the role of private sector for its development in Bangladesh. In Bangladesh, more than half of the people is based on agricultural and livestock farming. The poultry sector is an integral part of farming systems and has created both direct and indirect employment opportunity, improved food security and enhanced supply of quality protein to people’s meals, contributing country’s economic growth and reducing poverty level in rural and urban areas of Bangladesh. The present meat and egg production can meet only 68 and 64% of the national demand. The demand for meat, egg and meat and egg products have been expanding dramatically with income growth, population growth, urbanization and dietary changes. The growth and stability of Poultry, Fishery & Dairy depends on the balanced protein diets which are to be produced by maintaining international standard and quality. But the number of such types of industries so far in the country is very few and they cannot meet-up the increasing demand of this sector. As a result a significant amount of gap is always prevailing. On the other hand, the feed industries established in the country, region wise, do not have a minimum balance throughout the country. As such some parts of the country have sufficient feed industry and the supply is also higher than the actual demand but some parts of the country are deficit in poultry feed regarding the demand. For this reason the poultry industry could not be grow-up to cope with the increasing demand. Their production cost is also high and as a result they are in a big trouble to continue their business at a competitive market. Besides, to meet the overall demand of poultry feed, the country has to incur a huge amount of foreign currencies to import of this item from abroad every year. And this is putting some adverse effect on the economic development of the country. Thinking this view, the Govt. has declared it as a “Thrust Sector” and put utmost importance on the development and establishment of modern feed industries in the country. The proposed project is an attempt to reduce the supply deficiency of poultry feed in the country, especially the worst supply situation prevailing in the east Bengal.



2.2.



Estimation of Demand The Project is envisaged initially to produce poultry feed which is consumed by poultry farmers and commercial poultry firms. In Bangladesh, since the beginning of 21st century, the poultry industry has become an unparalleled platform for a quick profit, the generation of local employment, and the production of cheaper animal proteins. This paper summarizes poultry industry-related facts and figures for Bangladesh, starting from the very beginnings of this sector when poultry farming was part of subsistence family farming only to today’s highly commercialized horizon, through personal experiences, secondary data analysis, spot visits, and the sharing of views and ideas with stakeholders. A critical analysis reveals that the poultry industry in Bangladesh may become multi-dimensional and more stable in the near future as it establishes sufficient backward and forward linkages to input and output supplies. We can foresee its passing the very fast growing juvenile stages of higher net profit



earning and less



responsible then becoming fully mature. The projected demand and production potentials of this sector are increasing, but at a slower pace than before, in the face of some important challenges like emerging disease, higher prices of inputs, consumer preferences, and strong market competition. However, evidence suggests that the production systems of poultry in Bangladesh are entering a new era to cater to the needs of consumers, society, and government as it produces healthier and more diversified, further-processed foods, in the coming years. A better economy in the country, a more health-conscious population, and the availability of new and affordable innovations in this sector might be the driving forces to support the foreseen transformations.



2.3.



Livestock Economy at a Glance: The feed sector in Bangladesh is a prospective one, and the demand for poultry, Fish, Dairy feeds are increasing day by day. An economy of livestock shown below:



Table 1. Livestock population of Bangladesh (in Lakh number) Livestock Species



201011



201112



201213



201314



Cattle



231.21



231.95



233.41



Buffalo



13.94



14.43



14.50



Sheep



30.02



30.82



Goat Total Ruminant



241.49



251.16



Chicken Duck Total Poultry Total Livestock



2014-15



2015-16



2016-17



2017-18



234.88



236.36



237.85



239.35



240.86



242.38



14.57



14.64



14.71



14.78



14.79



14.86



31.43



32.06



32.70



33.35



34.01



34.68



35.37



252.77



254.39



256.02



257.66



259.31



261.00



262.67



539.72



543.57



547.45



551.33



555.28



2617.70



2683.93



2751.83



2821.45



2892.83



505.22



522.40



540.16



558.53



577.52



3122.93



3206.33



3292.00



3379.98



3470.35



3662.65



3749.90



3839.45



3931.31



4025.63



516.84



528.36



532.11



535.90



2346.8 6 441.20 2788.0 6 3304.9 0



2428.6 6 457.00 2885.6 6 3414.0 2



2490.1 1 472.54 2962.6 4 3494.7 5



2553.1 1 488.61 3041.7 2 3577.6 2



2018-19



Table 2. Contribution of Livestock and Poultry in the National Economy of Bangladesh (2018-19) Contribution of Livestock in Gross Domestic Product (GDP) ( Constant Prices) GDP growth rate of Livestock ( Constant Prices) GDP volume (Current prices) (Crore Taka) Share of Livestock in Agricultural GDP (Current prices) Employment (Directly) Employment (Partly)



1.47% 3.47% 43212 13.46 20 % 50 %



Table 3. Production of Milk, Meat and Eggs Prod ucts Milk Meat Egg



Fiscal Year



Unit Lakh Metric Ton Lakh Metric Ton Crore number



2010-11



2011-12



2012-13



29.50



34.60



50.70



19.90



23.30



607.85



730.38



2013-14



2014-15



2015-16



2016-17



2017-18



2018-19



60.92



69.70



72.75



92.83



94.01



99.23



36.20



45.21



58.60



61.52



71.54



72.06



75.14



761.74



1016.80



1099.52



1191.24



1493.31



1552.00



1711



Table 4. Demand, production, availability and deficiency of milk, meat and eggs (2018-19) Products Milk



Demand 152.02 Lakh Metric Ton (250 ml/day/head) 72.97 Lakh Metric Ton (120 gm/day/head) 1732.64 Crore number (104 numbers/year/head)



Meat Egg



Production 99.23 Lakh Metric Ton



Availability 165.07 (ml/day/head) 124.99 (gm/day/head) 103.89 (numbers/year/h ead)



75.14 Lakh Metric Ton 1711 Crore numbers



*Estimated population of the country: 16 crore 66 lakhs ( 30 June, 2019)



Table 5. Livestock contribution in GDP 2010-11



2011-12



2012-13



2013-14



2014-15



2015-16



2016-17



2017-18



2018-19



1.90 1.84 1.78 1.73 1.66 1.60 1.54 1.47 GDP (Base: 1.98 2005-06)* 2.68 2.74 2.83 3.10 3.21 3.32 3.40 3.47 Growth rate 2.59 of GDP *GDP calculated at constant price (Source: BBS); *P denotes Provisional; Prepared by Dr. Hossan Md. Salim, LE Section, DLS.



2.4.



Market Projection & Growth Forecast: Bangladesh’s commercial feed industry can be divided into three broad categories. Each of the categories can be divided into two sub categories. 5 years projection and growth forecast are showing in the below table and graphical presentation:



(Qty In Million M.Ton) Type of Product Broiler Poultry Feed Layer Fattening Cattle Feed Milk Floating Fish Feed Sinking Total Category



2020



2021



2022



2023



2024



1.70 0.78 0.44 0.19 0.35 0.56 4.02



1.79 0.86 0.49 0.22 0.37 0.59 4.32



1.83 0.93 0.53 0.23 0.39 0.62 4.53



1.92 1.01 0.58 0.26 0.41 0.66 4.84



2.02 1.13 0.68 0.29 0.44 0.70 5.26



Graphical Presentation of 5 years forcasting of Animal Feed:



Source: Light Castle Primary Research



Poultry and cattle rearing have become an integral part of Bangladesh’s agro-based economy and rural livelihood. However, commercial poultry, cattle and fish farms have been gaining prominence over the last two decades. Owing to this huge demand, commercial feed production experienced



almost 25% growth in the last one decade. In considering the growing demand, Some modern poultry and fish feed Mill has established in our country. Some of these are: 



Nourish Poultry Feeds Ltd.







Kazi Poultry Feeds Ltd.







Paragon Poultry Feds Ltd.







CP Bangladesh







Aman Feed Ltd.







AG Agro Industries Ltd.







Provita Feeds Ltd.







Mega Feed







Soguna Feed Ltd.







New Hope Feed Mill Bangladesh Ltd.







Aftab Poultry Feed Inds. Ltd.







ACI Agrovet Private Ltd.







RRP Agro Farm







Agro Industrial Trust







Diamond Egg







Rupsha Poultry Feeds Ltd.







BRAC Poultry Feeds Ltd.







Surma Poultry Feeds Ltd.







Soudi-Bangla Fish Feed Ltd.



These poultry feed Mills are now in operation but the actual demand is higher than the real production because the feed mills are more capital intensive than that of a poultry firm. As a result the growth of feed industry could not cope with the poultry industry.



2.5.



Pricing On an average, the selling prices of poultry feeds have been considered at Tk. 38,000 per metric ton.



2.6.



Distribution Channel The proposed product will be reached to the final consumers through the following channel of distribution: Compan



Commission



Poultry Farms



Technological Aspects 3.1.



Project Purpose & Design Astha Feed Industries Ltd. is poultry, fish and cattle Feed manufacturing industry established in 2019. Considering the growing demand of the poultry, fish and cattle feed, the sponsors of the project is going to establish 560 M.Ton per day to i.e. 168,000 M. ton per year at a Total Cost of Tk.5535.21 lac (Including Interest During Construction Period). The Main Plant & Machinery for the proposed project will be imported from Europe/Tiwan/chaina and some local machinery will be procured from the local market or local supplier. The sales revenue of the project is initially considered the poultry, fish and cattle Feeds.



3.2.



Product Mix & Production Plan The annual production of the project on the basis of two shift production of 8 hours each per day in 300 working days a year is calculated as under: (Production in M.Ton) Year-I



3.3.



Year-II



Year-III



Year-IV



Poultry Feed



126,000



1,57,500



1,96,875



246,000



Fish Feed



25,200



31,500



39,375



49,200



Cattle Feed



16,800



21,000



26,250



28,800



Process Flow-chart Grain Store



Milling



Mixing



Poultry/Fish/Cattle



Pelleting



Dozing



Storing



Marketing



Feed



Packing



3.4



Project Land and Location The project will be established at Chorkamaldi Mouza, under P.S – Sonargaon, Dist. Narayangonj. The cost of land has been considered at Tk.2510.00 lac including land development. The area of land is quite adequate and the location is very much suitable from different perspectives.



3.5



Communication The project location is facilitated with an excellent communication network with different parts of the country. As such the project will not face any problem in procuring of Raw Materials or sell the finished products.



3.6



Raw Materials & Supplies The required raw materials and supplies for production of poultry feed on 2-shift operation of 8 hours each per day in 300 working days a year has been estimated as under: Sl. No. 01. 02. 03. 04. 05. 06. 07. 01. 02. 03. 04. 05. 06.



3.7



Item Imported: Maize Poultry Meal Soya bean Meal/Cake Protein Concentrate DCP/MCP DDGS Medicine & Others Local : Rice Polish DORB Flour Salt Soya Oil Packing Materials



Quantity 84,400 M.Ton 1 3,400 M.Ton 36,000 M.Ton 1,250 M.Ton 1,204 M.Ton 5,720 M.Ton 12,500 M.Ton 5,800 M.Ton 9,400 M.Ton 2080 M.Ton 4050 M.Ton 38,32,000 Pcs.



Building & Civil Construction The cost of Building & other civil works for the proposed project has been estimated at Tk.825.32 lac.



3.8



Machinery & Equipment The entire machinery for the proposed project will be imported from Germany/ Taiwan, Chaina/Denmark at a total cost of Tk 3616.20 lac. In addition to the imported once some machinery will be procured from the local market. Total cost of Machinery and equipments for the proposed project has been estimated at Tk.4115.39.25 lac.



3.9



Stores & Spares The annual requirement of stores and spares has been estimated at 0.50%, 0.75%, 1%, of the total cost of the machinery for 1st, 2nd & 3rd year respectively.



3.10



Repair & Maintenance The annual requirement of repair & maintenance has been estimated at 0.50%, 0.75% & 1% of the total cost of the machinery for 1st, 2nd & 3rd year respectively.



3.11



Safety Provision To fight against the fire, the project will be equipped with all necessary fire-fighting equipments. Further, all personal working in the factory will be provided with appropriate training on safety measures and risk involved in handling the machineries.



3.12



Transportation A total cost of Tk.144.00 Lac has been considered to be incurred for additional vehicles and other cost.



3.13



purchasing



required



Erection & Installation The machinery of the proposed project will be installed under direct supervision of the foreign experts deputed by the machinery supplier. A team of local technical staff will assist them. The total cost of erection & installation has been estimated at Tk.150 lac.



3.14



Technology Transfer As per agreement with the machinery suppliers, they will provide sufficient training to the local technical personnel to equip them with proper functionality and operation.



3.15



Utilities Water The project will require 120,000 liters of water per day for chilling, human sanitation and another purpose. The required water for the proposed project will be available by sinking a deep-tube well. Power For smooth operation of the project, the project will require a maximum of 1500 KW of electricity per day while the annual consumption would be estimated at 450000 kw. The required power will be obtained from PDB/REB. Fuel & Lubricant To operate the project machineries smoothly some Fuel & Lubricants will be purpose Tk.25.00 lac has been estimated.



3.16



required and for this



Environment & pollution control The project will have its own dust collection system all over the project. This will enable the project to be of environment friendly and will pose no threat to pollute the adjacent environment.



3.17



Manpower Requirement On implementation of the proposed project, it will generate employment for different categories of people: direct labor, technical personnel of different types, marketing & administrative personnel. The total number of personnel required for the project are 150 nos.



3.18



Operative Life Of The Project The proposed feed mill Project being set up with brand-new machinery of Taiwan/Germany/Chaina Origin and expected to be in economic operation for at least 15 years without any major replacement.



Financial Aspects 4.1.



THE ESTIMATED COST OF THE PROJECT The Total Cost of the project has been estimated at Tk.6678.85 Lac including Interest during Construction Period. Brief are as follows: (Amount Tk. In “000”) Item



Total Cost



Land



Rented



Building & Other Construction



115625



Machinery & Equipment's



375900



Working Capital



100000



Other Costs



50000



Fixed Cost of the Project



641525



Interest During Construction Period (IDCP)



26360



Total Cost of the Project



4.2.



667885



FINANCING PLAN AGAINST TOTAL COST (Amount Tk. in “000”) Total Debt Equity against total Cost of the project Amount



%



Term Investment



367336



55%



Owner's Equity



274189



45%



641525



100%



Total



4.3.



ASSUMPTIONS UNDERLYING THE EARNING FORECAST OF THE PROJECT: i. ii. iii. iv. v.



Capacity Utilization



:



1st Year : 60% 2nd Year: 75% 3rd Year : 85% The price of raw materials, packing materials and finished goods will remain constant throughout the projected years of operation. Operation Time : 16 Hours/Day Production Period : 300 Days/Year. The Inventories Description Imported Raw Materials Local Raw Material Receivable Store & Spare Others



Tide-up period 150 days 60 Days 60 Days 60 Days 30 Days



vi.



Selling Price of the Product Sl. No.



4.4.



Item



Price/M.Ton



1.



Poultry/Fish Feed



Tk. Tk.38,000/-



2.



Cattle Feed



Tk.26,000/-



vii. viii. ix.



Depreciation : Straight line. Salary & wages will be incremental by 10% annually. Salvage value :



x. xi. xii. xiii.



Item Machinery Building Land Others Interest on Bank Investment Cost of Equity Life of the Project Corporate Tax



: : : : : : : :



xiv. xv.



Tax Holiday Tax Holiday Reserve



: :



Salvage value (in % of cost) 10% 50% 150% 100% 12% 10% 15 years. 3% on 1st 10 Lac 10% on next 20 Lac 15% on Rest 5 years. 15%



SALES REVENUE Selling price of the products of the proposed project has been considered on the basis of prevailing market prices. The estimated annual sales revenue is expected to be Tk. 25002.50 lac, Tk.32207.25 lac and Tk.36854.40 lac in the 1st, 2nd and 3rd year of operation.



4.5.



COST OF GOODS SOLD On the basis of the foregoing cost estimates, annual production cost (cost of goods sold) is expected to be Tk.20,179.52 lac, Tk.26,113.64 lac and Tk.29,933.74 lac in the 1st, 2nd and 3rd year of operation respectively.



4.6.



ADMINISTRATIVE & GENERAL EXPENSES The administrative & general expenses consists of remuneration of directors and allowances of other personnel who are not directly related with production, printing & stationery, telephone, postage, travelling expenses, advertisement, depreciation of office assets, amortization of preliminary expenses, and other miscellaneous expenses. The cost of general & administrative expenses has estimated to be Tk. 1380.14 lac, Tk.1852.59 lac & Tk.2067.53 lac in the 1st, 2nd & 3rd year of operation respectively.



4.7.



WORKING CAPITAL REQUIREMENT The project will require a Working Capital from Bank of Tk. 9000.90 lac, Tk. 10869.95 lac & Tk.12438.36 lac the 1st, 2nd & 3rd year of operation respectively.



4.8.



DEBT-SERVICE COVERAGE RATIO (DSCR) The debt-service coverage ration has been worked out and given in Annexure. The DSCR in the 1st, 2nd & 3rd year are 1.41, 1.61 & 1.76 respectively.



4.9.



INTERNAL RATE OF RETURN (IRR) The IRR of the project has been worked out at 26.73%, which is satisfactory.



4.10.



BREAK-EVEN ANALYSIS The project is expected to break-even at 14% for the 1st year of operation, 16% for the 2nd year of operation & 16% for the 3rd year of operation at rated capacity utilization.



4.11.



PAY BACK PERIOD The payback period for the project has been calculated and found it 2.16 year.



4.12.



ESTIMATED EARNING FORECAST (Amount Tk. in “000”) Item



1st Year



2nd Year



3rd Year



4th Year



5th Year



60%



75%



80%



80%



80%



2,500,250



3,220,725



3,685,440



3,685,440



3,685,440



Gross Profit



482,298



609,361



689,914



682,912



675,910



Operating Profit



344,284



424,102



483,161



481,687



480,581



Net Profit before Tax



188,269



245,741



284,885



287,833



290,044



Net Profit after Tax



160,029



208,880



242,152



244,658



246,537



Retained Earnings



160,029



208,880



242,152



244,658



246,537



Gross Profit to Sales



19.29%



18.92%



18.72%



18.53%



18.34%



Operating Profit to Sales



13.77%



13.23%



13.11%



13.07%



13.04%



Net Profit to Sales (before Tax)



7.53%



7.63%



7.73%



7.81%



7.87%



Net Profit to Sales (after Tax)



6.40%



6.49%



6.57%



6.64%



6.69%



Capacity Utilization Sales Revenue



Cost of the Project 5.0 ESTIMATED FIXED COST OF THE PROJECT Incurred/ To be Incurred Sl. No.



Item



Total Cost (in '000' Taka)



Cost to be Incurred Foreign Currency Cost



1 1.a 1.b 2 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24 2.25



Local Currency Cost



Total Cost



LAND Land (12 Bigha ) 21,60,00,000 Land development 3,50,00,000 Sub-Total : 25,10,00,000 BUILDING AND OTHER CIVIL CONSTRUCTION Architectural Drawing Foundation Drawing (Structural) all Process Tower Drawing (Steel) Factory Entry Gate and Security Room Boundary Wall Security Post Office Building (5500 x 3 storied) Feed Mill Process tower Foundation Raw Material Ware House (Civil Work) RM Warehouse Structure/ Building Finish Goods Ware House (Civil Work) FG Warehouse Structure/ Building Truck Scale foundation Internal Road Construction Boiler Foundation Boiler Structure/ Building Sub-station Foundation Sub-station Structure/ Building Silo Foundation Silo Plant Structure/ Building Premix/Additive Store WTP Foundation WTP Structure/ Building Liquid System Foundation Liquid System Structure/ Building Sub-Total :



30133936



0 0 0



0



21,60,00,000 3,50,00,000 25,10,00,000



2,16,000 35,000 2,51,000



100000 150000 90000



100000 150000 90000



100 150 90



1100000 11100000 270000 26400000



1100000 11100000 270000 26400000



1100 11100 270 26400



15480000



15480000



15480



15000000 13500000



15000000 13500000



15000 13500



6300000 6020000 1925000 12000000 1750000 1575000 875000 140000 880000 200000 455000 315000 11,56,25,000



6300000 6020000 1925000 12000000 1750000 1575000 875000 140000 880000 200000 455000 315000 11,56,25,000



6300 6020 1925 12000 1750 1575 875 140 880 200 455 315 1,15,625



Incurred/ To be Incurred Sl. No.



Item



3.26 3.27 3.28 3.29 3.30



Feed Mill Machine (Import) 10+10+5+5+5 C&F, Customs & Transport Cost Installation of Feed Mill Machine (2 Party) Storage Silo (Import) C&F, Customs & Transport Cost Installation of Storage Silo Steel Building 2 Tower of FM (Local Order) Installation of Steel Building (supply utility) Steam Boiler (Import) C&F, Customs & Transport Cost Pipe line, equipment & fittings Installation of Steam Boiler Air Compressor (Local Order) Pipe line, equipment & fittings Installation of Air Compressor Truck weighing Scale 40T (Local Order) Pipe line, equipment & fittings Water Treatment Plant (Local Order) Pipe line, equipment & fittings Installation of WTP Lab Equipment Workshop Machineries (Local Order) Installation of Workshop Machineries Auto Liquid Equipment Purchase Auto Liquid Supplying System Installation Electric System Pipe line & fittings PABX System Machine Purchase Cable, Pipe line & fittings Security Surveillance + CCTV



3.31



Cable, Pipe line & fittings



3.32 3.33



Fire Detection and Protection Cable, Pipe line & fittings Sub Total



3.01 3.02 3.03 3.04 3.05 3.06 3.07 3.08 3.09 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25



Cost Already Incurred



Foreign Currency Cost



Total Cost



Total Cost (in '000' Taka)



260000000



260000



1500000



1500000



1500



15000000



15000000



15000



-



-



-



Local Currenc y Cost



260000000



60000000



60000000



60000



500000



500000



500



6000000 120000 1200000 220000 3200000 70000 30000



6000000 120000 1200000 220000 3200000 70000 30000



6000 120 1200 220 3200 70 30



1250000



1250000



1250



30000



30000



30



1100000



1100000



1100



270000 20000 8000000



270000 20000 8000000



270 20 8000



1500000



1500000



1500



45000



45000



45



300000



300000



300



35000



35000



35



50000 200000 90000 40000 180000



50000 200000 90000 40000 180000



50 200 90 40 180



140000



140000



140



480000 50000 101620000



480000 50000 361620000



480 50 361620



Total Cost (in '000' Taka)



Incurred/ To be Incurred Sl. No.



Items



. Cost Already Incurred Foreign Currency Cost



4 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17 4.18 4.19 4.20 4.21



4.22 4.23



4.24 4.25 4.26



POWER STATION Equipment 33KV Substation 4MV, 33/10.415 KV Transformer OLTC 33 KV Voltage Regulator Unit 33KV Isolator 33KV lightning Arrester (3pcs/Set) 33 KV CT & PT 3-Phase combined unit 33 KV VCB outdoor Type 33KV Control Panel 110V Battery Battery Charger AC Distribution Board DC Distribution Board Grounding Earthling Material Control Cable/ accessories Yard Lightning Equipment LT Substation Indoor Panel PFI Panel Generator LT Cable REB Part: Supply, Installation, Testing of 33 KVAR ACR, 33KV Isolator, CT & PT of metering unit, fixtures etc. Approval from REB end including Misc. expenses involved for load sanction , extension Diversion & Shifting of O/H line from REB/PBS / consultant. Construction of 33KV Overhead Line Renovation, Extension, Diversion and shifting of existing 33KV line through a suitable route / location etc. complete in all respect as per REB Standard Specification Other Part (Expenses): Permission From Environmental Authority Permission From Fire & Other Authority Others Sub - Total :



1175494



0



Local Currenc y Cost



Total Cost



6300000 55000 30000 90000 150000 1250000 120000 110000 85000 30000 30000 150000 113000 5000



6300000 55000 30000 90000 150000 1250000 120000 110000 85000 30000 30000 150000 113000 5000



6300 55 30 90 150 1250 120 110 85 30 30 150 113 5



4550000 3000000 5600000 3500000 0



4550000 3000000 5600000 3500000 0



4550 3000 5600 3500



1550000



1550000



1550



300000 700000



300000 700000



300 700



50000 0 30000 30000 100000 27948000



50000 0 30000 30000 100000 27948000



50 0 30 50 100 27948



Sl. No.



Items



. Cost Already Incurred



Incurred/ To be Incurred



Foreign Currency Cost 5 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 5.09 5.10 5.11 5.12 5.13 5.14 5.15



7 7.01 7.02 7.03 7.04 7.05 7.06



ELECTRIC ITEM (FULL FACTORY) Electric Light Shed - 400W Electric Light Shed - 250W Electric Light Shed - 63W Electric Light Shed - 32W Tube Light Shed LED Light set - 32W Ceiling Fan Wall Fan Stand Fan Air Condition Television Refrigerator Woven Geezer Electric Panel & Cable Sub - Total : FURNITURE , FIXTURE AND OFFICE EQUIPMENT Table Chair Cabinet Computer Sub - Total : PRE - OPERATING EXPENSES Promotional & Legal Survey, Plan & Drawings Bank's E & TA Fees Feasibility Report Trial Operation & Others Misc. development Expenses



8 8.01 8.02 8.03



Sub - Total : OTHERS WORKS Vehicles (3 Nos.) Hidden Cost Others work



6 6.01 6.02 6.03 6.04



Sub - Total : GRAND TOTAL :



251000000



260000000



Local Currenc y Cost



Total Cost (in '000' Taka)



Total Cost



51450 54000 26520 57800 204000 43550 103500 36000 78000 845000 216000 90000 30000 28000 1545000 3408820



51450 54000 26520 57800 204000 43550 103500 36000 78000 845000 216000 90000 30000 28000 1545000 3408820



51.45 54.00 26.52 57.80 204.00 43.55 103.50 36.00 78.00 845.00 216.00 90.00 30.00 28.00 1545.0 3408.82



368000 420000 414000 810000 2012000



368000 420000 414000 810000 2012000



368 420 414 810 2150



500000 500000 50000 100000 500000 500000 2150000



500000 500000 50000 100000 500000 500000 2150000



500 500 50 100 500 500 2150



4400000 5000000 5000000 14400000 267163820



4400000 5000000 5000000 14400000 778163820



4400 5000 5000 14400 7781164



Economic Aspects 6.1.



EMPLOYMENT GENERATION The project after completion will generate direct employment to 222 people who are presently under employed and cost per job to be created would be Tk.39.41 lac.



6.2.



CONTRIBUTION TO G.D.P The project will contribute Tk.3280.12 lac, Tk. 3363.92 lac & Tk. 5763.18 lac to G.D.P for the 1st, 2nd & 3rd year of its operation respectively.



Contribution to GDP : Income



1st Year



2nd Year



3rd Year



4th Year



5th Year



25,00,250



32,20,725



36,85,440



36,85,440



36,85,440



Less Inter- Firm Transaction : Raw Materials



19,99,566



26,57,874



28,64,327



28,78,850



28,79,565



Store And Spares



1,164



1,747



2,329



2,329



2,329



Repair & Maintenance



1,588



2,170



2,752



2,752



2,752



Rent , Tax & Insurance



2,105



2,105



2,105



2,105



2,105



16,958



21,196



22,608



22,608



22,608



425



468



510



510



510



Utilities Postage & Telegram Stationery & Printing



85



106



128



128



128



Traveling & Conveyance



850



1,063



1,275



1,275



1,275



Advertisement



425



638



850



850



850



Entertainment



170



213



255



255



255



85



85



85



85



85



Audit Fee Other Expenses Sub-Total : Contribution To G. D. P :



1,48,818



1,96,671



2,11,899



2,11,899



2,11,899



21,72,238



28,84,333



31,09,122



31,23,645



31,24,360



3,36,392



5,76,318



5,61,795



5,61,080



3,28,012



Annexure Annexure-I (Amount Tk. In “000”) ESTIMATED OPERATING RESULTS Item



1st Year



2nd Year



3rd Year



4th Year



5th Year



60%



75%



80%



80%



80%



2,500,250



3,220,725



3,685,440



3,685,440



3,685,440



Gross Profit



482,298



609,361



689,914



682,912



675,910



Operating Profit



344,284



424,102



483,161



481,687



480,581



Net Profit before Tax



188,269



245,741



284,885



287,833



290,044



Net Profit after Tax



160,029



208,880



242,152



244,658



246,537



Retained Earnings



160,029



208,880



242,152



244,658



246,537



Gross Profit to Sales



19.29%



18.92%



18.72%



18.53%



18.34%



Operating Profit to Sales



13.77%



13.23%



13.11%



13.07%



13.04%



Net Profit to Sales (before Tax)



7.53%



7.63%



7.73%



7.81%



7.87%



Net Profit to Sales (after Tax)



6.40%



6.49%



6.57%



6.64%



6.69%



1.41



1.61



1.76



1.85



1.92



Capacity Utilization Sales Revenue



Debt-Service Coverage Ratio(times) Financial Internal Rate Of Return (IRR) Break Even Sales Break Even Capacity



26.73% 656095



14%



Employment Generation



Pay-Back Period



16% 200



Cost per Job Contribution to G. D. P



888150



749823 16% (of installed capacity) Person



3940.82 3,28,012



3,36,392



5,76,318



5,61,795



5,61,080 2.16 Year



Annexure-II (Amount Tk. In “000”) FIXED COST OF THE PROJECT Item Total Cost Land



Rented



Building & Other Construction



115625



Machinery & Equipment's



375900



Working Capital



100000



Other Costs



50000



Fixed Cost of the Project



641525



Interest During Construction Period (IDCP)



26360



Total Cost of the Project



667885



MEANS OF FINANC (Amount Tk. in “000”) Total Debt Equity against total Cost of the project Amount



%



Term Investment



367336



55%



Owner's Equity



274189



45%



641525



100%



Total



Annexure-III (Amount Tk. In “000”)



EARNING FORECAST Item



1st Year



2nd Year



3rd Year



4th Year



5th Year



60%



75%



80%



80%



80%



Sales Revenue



2500250



3220725



3685440



3685440



3685440



Cost Of Goods Sold



2017952



2611364



2995526



3002528



3009530



Gross Profit



482298



609361



689914



682912



675910



Admin. & General Expenses



138014



185259



206753



201225



195329



Operating Profit



344284



424102



483161



481687



480581



Financial Expenses



156015



178361



198276



193854



190537



Net Profit before Tax



188269



245741



284885



287833



290044



Capacity Utilization



Income Tax (@15% or As per Slab) Tax-Holiday Reserve (@15%)



TAX



H



O



L



I



D



A



Y



28240



36861



42733



43175



43507



Net Profit after Tax



160,029



208,880



242,152



244,658



246,537



Retained Earnings



160,029



208,880



242,152



244,658



246,537



Gross Profit to Sales



19.29%



18.92%



18.72%



18.53%



18.34%



Operating Profit to Sales



13.77%



13.23%



13.11%



13.07%



13.04%



Net Profit to Sales (before Tax)



7.53%



7.63%



7.73%



7.81%



7.87%



Net Profit to Sales (after Tax)



6.40%



6.49%



6.57%



6.64%



6.69%



Annexure-IV (Amount Tk. In “000”)



SALES REVENUE Item



1st Year



Capacity Utilization



2nd Year



3rd Year



4th Year



5th Year



60%



75%



80%



80%



80%



2936084



3566864



4088080



4088080



4088080



Add. Opening Stock Of WIP



0



75320



72534



92365



92365



Less. Closing Stock Of WIP



75320



72534



92365



92365



92365



Add. Opening Stock Of FG



0



125362



150352



180836



192854



Less: Closing Stock Of FG



125362



150352



180836



192854



201485



2735402



3544660



4037765



4076062



4079449



15% on Estimated Sales



440413



622534



670831



673920



673920



Less adjustment with RM



205261



298599



318506



283298



279911



Net VAT payable



235152



323935



352325



390622



394009



2500250



3220725



3685440



3685440



3685440



Total Sales



Total Estimated Sales : LESS VAT



Sales after paying VAT



A.01. Yearly Production at 100% Capacity



Item



Quantity (M.Ton)



Rate (in Taka)



Total (in '000')



Poultry Feed



115000



38000



4370000



Fish Feed



25000



36000



900000



Cattle Feed



10000



25000



250000



Total



150000



5520000



Annexure-V (Amount Tk. In “000”)



COST OF GOODS SOLD Particulars Capacity Utilization



1st Year



2nd Year



3rd Year



4th Year



5th Year



60%



75%



80%



80%



80%



20,16,944



24,69,031



29,08,636



29,49,286



30,29,032



Direct Wages



23,743



21,031



13,697



16,984



18,350



Depreciation



27,259



24,324



25,635



32,138



30,638



Utilities



18,329



22,437



24,785



52,598



28,598



Stores & Spares



3,137



3,840



2,760



3,740



3,240



Repair & Maintenance



3,544



4,339



4,530



4,488



3,738



11,853



14,509



19,530



20,626



20,627



4,443



5,439



1,653



600



800



21,09,252



25,64,949



30,01,226



30,80,460



31,35,023



51,399



12,635



25,235



55,029



21,09,252



26,16,348



30,13,861



31,05,695



31,90,052



51,399



12,635



25,235



55,029



1,07,812



20,57,853



26,03,713



29,88,626



30,50,666



30,82,240



Raw Materials



Tax & Insurance Other Manufacturing Overhead Total Direct Cost Add: Opening Stock Of Work-in-Process(WIP)



-



Total C.O.G.S Before Adjustment of Closing Stock Less: Closing Stock Of WIP Total C.O.G.S after WIP Add: O.S Of Finished Goods Goods Available For Sale Less: C.S.Of Finished Goods Cost Of Goods Sold :



-



39,901



32,250



25,350



73488



20,57,853



26,43,614



30,20,876



30,76,016



3155728



39,901



32,250



25,350



73,488



146,198



20,17,952



26,11,364



29,95,526



30,02,528



30,09,530



Annexure-VI (Amount Tk. In “000”) B.1.



RAW MATERIALS :



Basic Raw-Materials: Products in M.Ton



Rate (in Taka)



Total (in '000')



Maize



84400



18000



1519200



Poultry Meal



13400



75000



1005000



Soya bean Meal/Cake



36000



34000



1224000



Protein Concentrate



1250



65000



81250



DCP/MCP



1204



52000



62608



DDGS



5220



25000



130500



Item



Medicine & Others Sub-Total :



0 141474



4022558



Local Raw-Material : Rice Polish



12500



18000



225000



DORB



5800



14000



81200



Flour



9400



25000



235000



Salt



2080



12000



24960



Soya Oil



4050



80000



324000



3832000



24



91968



Packing Materials Sub-Total (Local)



982128



Grand Total



5004686



Raw Material



1st Year



2nd Year



3rd Year



4th Year



5th Year



Requirement



20,16,944.00



24,69,031.00



29,08,636.00



29,49,286.00



30,29,032.00



Annexure-VII (Amount Tk. In “000”) DIRECT LABOR : TECHNICAL : No(s)



Salary/ Month



Total Salary



Production Manager



1



Tk.50,000



600.00



Asstt. Production Manager



2



Tk.35,000



840.00



Mechanical Engineer



2



Tk.25,000



600.00



Electrical Engineer



2



Tk.18,000



432.00



Supervisor



4



Tk.15,000



720.00



Foreman



6



Tk.12,000



864.00



Quality Controller



4



Tk.10,000



480.00



Electrician



4



Tk.8,000



384.00



Generator/Boiler Operator



4



Tk.10,000



480.00



Driver



6



Tk.10,000



Sub - Total :



35



Position



720.00 6,120.00



OPERATOR/ LABOR : No(s)



Salary/ Month



Total Salary



Highly Skilled



40



Tk.8,000



2,880.00



Skilled



50



Tk.7,000



3,360.00



Semi – Skilled



65



Tk.6,000



3,600.00



Sub - Total :



155



9,840.00



GRAND TOTAL :



190



15,960.00



Category



DIRECT LABOR Item Salary Increment Sub - Total : Bonus (2 Months Salary)



1st Year 15,960.00 15,960.00 2,660.00



2nd Year 15,960.00 1,117.20 17,077.20 2,660.00



3rd Year 17,077.20 1,195.40 18,272.60 2,846.20



4th Year 18,272.60 1,279.08 19,551.69 3,045.43



5th Year 19,551.69 1,368.62 20,920.30 3,258.61



6th Year 20,920.30 1,464.42 22,384.73 3,486.72



Total Requirement :



18,620.00



19,737.20



21,118.80



22,597.12



24,178.92



25,871.44



Annexure-VIII (Amount Tk. In “000”) ADMINISTRATIVE , GENERAL AND SELLING EXPENSES Item



1st Year



2nd Year



3rd Year



4th Year



5th Year



Directors Remuneration



5000.00



5000.00



5000.00



5000.00



5000.00



Administrative Salary



9002.00



9632.14



10306.39



11027.84



11799.78



Depreciation & Write-off



10704.40



10704.40



10704.40



10704.40



10704.40



Postage, Telephone, Telegram etc.



350.00



400.00



450.00



500.00



600.00



Stationary & Printing



100.00



125.00



130.00



150.00



150.00



Traveling & Conveyance



800.00



1000.00



1200.00



1400.00



1500.00



Advertisement & Marketing



400.00



500.00



700.00



1000.00



1000.00



Entertainment



200.00



250.00



300.00



350.00



400.00



Audit Fee



100.00



100.00



100.00



100.00



100.00



110157.60



156147.46



176262.21



169292.76



162174.82



Office Rent



700.00



700.00



700.00



700.00



700.00



Misc. Expense



500.00



700.00



900.00



1000.00



1200.00



138014.00



185259.00



206753.00



201225.00



195329.00



Selling Expenses



TOTAL ADMINISTRATIVE, GENERAL AND SELLING EXPANSES



Annexure-IX (Amount Tk. In “000”) ADMINISTRATIVE SALARY : No(s)



Monthly Salary



Total Sal./ yr.



General Manager



1



Tk.100,000



1200



Marketing Manager



2



Tk.50,000



1200



Marketing Officer



10



Tk.20,000



2400



Accountant



3



Tk.20,000



720



Purchase Officer



2



Tk.15,000



360



Sales Officer



5



Tk.15,000



900



Office Executive



4



Tk.10,000



480



Peon



3



Tk.8,000



288



Guard/Mali



2



Tk.7,000



168



Position



Total



32



643000



7716



1st Year



2nd Year



3rd Year



Administrative Salary : Item Salary



4th Year



5th Year



7716.00



7716.00



8256.12



8834.05



9452.43



0.00



540.12



577.93



618.38



661.67



Sub – Total



7716.00



8256.12



8834.05



9452.43



10114.10



Bonus ( 2 Months Salary)



1286.00



1376.02



1472.34



1575.41



1685.68



Increment ( @ 7% per year )



Total Admin. Salary :



9002.00



DEPRECIATION AND WRITE-OFF



9632.14



10306.39



11027.84



:



Other Assets



3282.40



Interest on IDCP



5272.00



Pre Operating



11799.78



Expenses



251000.00



Total



259554.40



Annexure-X (Amount Tk. In “000”) ASSESSMENT OF WORKING CAPITAL



Tide-up Period (Days)



Current Assets Imported Raw Materials



150



Local Raw Materials



60



Work In Process



7



Finished Goods



15



Receivable



60



Store & Spare



60



Others



30



Production Period



300



2nd Year



3rd Year



4th Year



5th Year



Imported Raw Materials



Current Assets



1st Year 891279.00



1042581.00



1204338.00



1204338.00



1204338.00



Local Raw Materials



115263.00



150365.00



167321.00



167321.00



167321.00



Work in Process



52365.00



65380.00



80365.00



80365.00



80365.00



Finished Goods



120598.00



160325.00



175350.00



175350.00



175350.00



20365.00



30350.00



30653.00



30653.00



30653.00



250.35



325.24



421.30



421.30



421.30



1200120.35



1449326.24



1658448.30



1658448.30



1658448.30



8534.65



8534.65



8534.65



8534.65



8534.65



1191585.70



1440791.59



1649913.65



1649913.65



1649913.65



900090.26



1086994.68



1243836.23



1243836.23



1243836.23



300030.09



362331.56



414612.08



414612.08



414612.08



Receivable Stores & Spares Total Less-Dep. Involves in WIP,FG & Rec. Total Working Capital Requir. W. Capital For Bank Finance (75%) Net W. Capital Requirement (25%)



Annexure-XI (Amount Tk. In “000”) FINANCIAL EXPENSES Item



1st Year



2nd Year



3rd Year



4th Year



5th Year



Profit On Long Term Investment



48,340.52



39,993.19



30,598.18



20,024.01



8,122.70



Profit On Working Capital



1,08,010.83



1,30,439.36



1,49,260.35



1,49,260.35



1,49,260.35



Total Financial Expenses



1,56,351.35



1,70,432.55



1,79,858.53



1,69,284.36



1,57,383.05



3rd Year



4th Year



E.1.



PROFIT ON LONG TERM INVESTMENT 1st Year



2nd Year



5th Year



Principal



4,27,164.00



360656.00



285800.67



201550.33



106725.82



Yearly Installment



1,14,848.52



1,14,848.52



1,14,848.52



1,14,848.52



1,14,848.52



48,340.52



39,993.19



30,598.18



20,024.01



8,122.70



Profit



E.2. PROFIT ON WORKING CAPITAL : 1st Year



2nd Year



3rd Year



4th Year



5th Year



Working Capital Requirement



9,00,090.26



10,86,994.68



12,43,836.23



12,43,836.23



12,43,836.23



Profit



1,08,010.83



1,30,439.36



1,49,260.35



1,49,260.35



1,49,260.35 Annexure-XII



(Amount Tk. In “000”) REPAYMENT SCHEDULE OF PROPOSED LONG TERM LOAN Period (Quarterly) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20



Installment Size 28712.13 28712.13 28712.13 28712.13 28712.13 28712.13 28712.13 28712.13 28712.13 28712.13 28712.13 28712.13 28712.13 28712.13 28712.13 28712.13 28712.13 28712.13 28712.13 28712.13



Residual Principal



Interest @ 12.00%



Repayment of Principal



4,11,266.79 3,94,892.66 3,78,027.31 3,60,656.00 3,42,763.55 3,24,334.33 3,05,352.23 2,85,800.67 2,65,662.56 2,44,920.31 2,23,555.79 2,01,550.33 1,78,884.71 1,55,539.12 1,31,493.16 1,06,725.82 81,215.46 54,939.79 27,875.85 0



12814.92 12,338.00 11,846.78 11,340.82 10,819.68 10,282.91 9,730.03 9,160.57 8,574.02 7,969.88 7,347.61 6,706.67 6,046.51 5,366.54 4,666.17 3,944.79 3,201.77 2,436.46 1,648.19 836.28



15,897.21 16,374.13 16,865.35 17,371.31 17,892.45 18,429.22 18,982.10 19,551.56 20,138.11 20,742.25 21,364.52 22,005.46 22,665.62 23,345.59 24,045.96 24,767.34 25,510.36 26,275.67 27,063.94 27,875.85 Annexure-XIII



(Amount Tk. In “000”) DEBT - SERVICE COVERAGE RATIO Income Operating Profit Depreciation & Write-off



1st Year



2nd Year



3rd Year



4th Year



5th Year



344,284



424,102



483,161



481,687



480,581



37,963.40



35,028.40



36,339.40



42,842.40



41,342.40



Income Available For Meeting Liability Liabilities Installment Of Term Investment



3,82,247.40



4,59,130.40



5,19,500.40



5,24,529.40



5,21,923.40



1st Year



2nd Year



3rd Year



4th Year



5th Year



114848.52



114848.52



114848.52



114848.52



114848.52



Financial Expenses



1,56,351.35



1,70,432.55



1,79,858.53



1,69,284.36



1,57,383.05



Total Liability



2,71,199.87



2,85,281.07



2,94,707.05



2,84,132.88



2,72,231.57



1.41



1.61



1.76



1.85



1.92



Debt-Service Coverage (Times)



Annexure-XIV (Amount Tk. In “000”) CASH FLOW STATEMENT Sources Of Fund: Equity in Fixed Investment Equity Contribution in W/C Long Term Bank Loan Retained Earnings Tax Holiday Reserve Depreciation Increase in Current Liability Total Fund Application Of Fund : Capital Investment Pre Operating Expenses Increase In Current Assets Repayment Of Loan Total Application Of Fund :



Const. Year 362,024.00 442,500.00 804,524.00



1st Year



2nd Year



3rd Year



4th Year



5th Year



300,030.09 160,029.00 28,240.00 37,963.40 900,090.26 1,426,352.75



62,301.47 208,880 36,861.00 35,028.40 186,904.42 529,975.29



52,280.52 242,152 42,733.00 36,339.40 156,841.55 530,346.47



244,658 43,175.00 42,842.40 330,675.40



246,537 43,507.00 41,342.40 331,386.40



Const. Year 553,524.00 251,000.00 804,524.00



1st Year



2nd Year



3rd Year



4th Year



5th Year



553,524.00 251,000.00 804,524.00



217,682.79 114848.52 332,531.31



327,993.41 114848.52 442,841.93



149,409.41 114848.52 264,257.93



50,858.55 114848.52 165,707.07



-



377,786.50 377,786.50



197,443.98 377,786.50 575,230.48



87,504.54 575,230.48 662,735.03



66,417.47 662,735.03 729,152.50



165,679.33 729,152.50 894,831.83



Cash Surplus Opening Cash Balance Closing Cash Balance



Annexure-XV (Amount Tk. In “000”) BALANCE SHEET Assets Free Cash



Const. Year -



1st Year 345,223.25



2nd Year 536,576.25



3rd Year 614,081.25



4th Year 676,787.25



5th Year 836,453.25



Restricted Cash Cash Balance



-



32,563.25



38,654.24



48,653.78



52,365.25



58,378.58



377,786.50



575,230.49



662,735.03



729,152.50



894,831.83



Raw & packing Materials



-



619,856.70



690,699.19



897,325.78



1,147,206.58



1,121,144.68



Work in Process



-



51,399.00



12,635.00



25,235.00



55,029.00



107,812.00



Finished Goods



-



39,901.00



32,250.00



25,350.00



73,488.00



146,198.00



Receivable



-



222,310.25



415,490.43



531,060.82



352,657.43



304,084.88



Store & Spares



-



250.35



325.24



421.30



421.30



421.30 2,574,492.68



Current Assets



-



1,311,503.80



1,726,630.35



2,142,127.93



2,357,954.81



Pre Operating Expenses



251,000.00



200,800.00



150,600.00



100,400.00



50,200.00



-



Fixed Assets



527,164.00



527,164.00



527,164.00



527,164.00



527,164.00



527,164.00



Total Assets



6,41,525.00



2,039,467.80



2,404,394.35



2,769,691.93



2,935,318.81



3,101,656.68



Liabilities



Const. Year



Long Term Loan



Equity



3rd Year



4th Year



5th Year



17,892.45



20,138.11



22,665.62



27,875.85



77,630.74



-



900,090.26



1,086,994.68



1,243,836.23



1,243,836.23



1,243,836.23



427,164.00



917,982.71



1,107,132.79



1,266,501.85



1,271,712.08



1,321,466.97



1st Year



2nd Year



3rd Year



4th Year



5th Year



351,000.00



351,000.00



351,000.00



351,000.00



351,000.00



351,000.00



-



582,216.09



512,251.56



433,295.08



305,878.73



132,417.71



Const. Year



Capital Increment in Equity Participation Tax Holiday Reserve



2nd Year



427,164.00



Working Capital Loan Total Liabilities : Equity



1st Year



-



28,240.00



65,101.00



107,834.00



151,009.00



194,516.00



-



160,029.00



368,909.00



611,061.00



855,719.00



1,102,256.00



Total Equity :



351,000.00



1,121,485.09



1,297,261.56



1,503,190.08



1,663,606.73



1,780,189.71



Total Liability & Equity



778,164.00



2,039,467.80



2,404,394.35



2,769,691.93



2,935,318.81



3,101,656.68



Retained Earnings



Annexure-XVI (Amount Tk. In “000”) KEY RATIOS Const. Year



1st Year



2nd Year



3rd Year



4th Year



5th Year



DEBT ( % )



0.55



0.52



0.49



0.46



0.42



0.39



EQUITY ( % )



0.45



0.48



0.51



0.54



0.58



0.61



Current Ratio



1.15



1.46



1.72



2.00



2.32



Quick Ratio



0.41



0.52



0.52



0.58



0.71



Liquidity Ratio



0.38



0.49



0.49



0.54



0.67



Asset Ratio



1.92



2.04



2.17



2.40



2.56



Return on Equity Ratio



0.24



0.52



0.80



1.11



1.44



Working Capital to Total Assets(X1)



0.17



0.16



0.15



0.14



0.12



Retained Earnings to Total Assets(X2)



0.09



0.16



0.22



0.28



0.33



EBIT to Total Assets(X3)



0.11



0.11



0.10



0.09



0.09



Equity to Total Liabilities(X4)



0.92



1.04



1.17



1.40



1.56



Sales to Total Assets(X5)



1.42



1.43



1.34



1.21



1.09 Annexure-XVII



(Amount Tk. In “000”) INTERNAL RATE OF RETURN (IRR) Year



Operating Profit



Depreciation



Cash in Flow



1



st



3,44,284.00



37,963.40



3,82,247.40



2nd



4,24,102.00



35,028.40



4,59,130.40



3rd



4,83,161.00



36,339.40



5,19,500.40



4



th



4,81,687.00



42,842.40



5,24,529.40



5



th



4,80,581.00



41,342.40



5,21,923.40



6



th



4,79,082.00



33535.74



5,12,617.74



7



th



4,71,025.00



33535.74



5,04,560.74



8



th



4,61,635.00



33535.74



4,95,170.74



9th th



10



4,55,236.00



33535.74



4,88,771.74



4,40,358.00



33535.74



4,73,893.74



-



21,28,914.50



-



th



11



Annexure-XVIII (Amount Tk. In “000”) CASH FLOW STATEMENT FOR CALCULATION OF IRR: Cash Outflow



Year Construction Year 1



st



6,41,525.00 12,00,120.35



Cash Inflow



Net Cash Inflow



-



-778164



(6,41,525)



(6,41,525)



3,82,247.40



-817873



(5,81,561)



(5,29,133)



20%



30%



nd



32,952.00



4,59,130.40



426178.4



2,95,957



2,52,177



rd



28,525.00



5,19,500.40



490975.4



2,84,129



2,23,475



th



165.00



5,24,529.40



524364.4



2,52,876



1,83,595



th



-



5,21,923.40



521923.4



2,09,749



1,40,569



th



-



5,12,617.74



512617.74



1,71,675



1,06,202



th



-



5,04,560.74



504560.74



1,40,814



80,410



8



th



-



4,95,170.74



495170.74



1,15,161



60,703



9th



-



4,88,771.74



488771.74



94,727



46,091



10th



-



4,73,893.74



473893.74



76,536



34,375



11th'



-



21,28,914.50



2128914.5



2,86,526



1,18,790



4,68,427



(1,60,910)



2



3



4 5 6 7



Net Present value : Internal / Financial Rate Of Return ( % )



:



26.73% Annexure-XIX (Amount Tk. In “000”)



BREAK EVEN ANALYSIS 3rd year of Operation Income (Sales Revenue) Break-up Of Cost Raw Materials



4088080.00 Fixed Cost



Variable Cost



Total Cost



-



30,56,868.92



30,56,868.92



Wages & Salary



13,060.00



5,800.00



18,860.00



Store & Spares



1,250.00



1,555.00



2,805.00



Utilities



4,840.40



15,405.00



20,245.40



Repair & Maintenance



1,475.00



1,502.00



2,977.00



Rent , Tax & Insurance



1,927.00



-



1,927.00



Postage & Telegram



222.00



329.00



551.00



Stationary & Printing



54.60



85.00



139.60



16,980.00



1,32,500.00



1,49,480.00



Traveling & Conveyance



555.00



900.00



1,455.00



Depreciation & Write-off



37,963.40



-



37,963.40



Financial Expenses



Advertisement & Marketing Entertainment Selling Expenses Audit Fee Directors Remuneration VAT



-



950.00



950.00



165.00



188.00



353.00



-



1,01,670.00



1,01,670.00



100.00



-



100.00



5,000.00



-



5,000.00



-



3,06,606.00



3,06,606.00



Office Rent



328.00



-



328.00



Misc. Expenses



956.00



970.00



1,926.00



84876.395



3625328.919



Total



;



3710205.315



P . V RATIO = (Sales - V . C )/ Sales = Break Even Sales = Fixed Cost / P.V Ratio = Break Even Capacity



0.11 7,49,823.20 20% Of Assumed



Capacity



16% Of Installed Capacity



Annexure-XX (Amount Tk. In “000”) PAY BACK PERIOD Year



Investment



Net Profit before Tax



Depreciation & write off



Total Cash inflow



Cumulative cash flow



Pay back Period (Year)



Balance



0



641525.00



0.00



1



1200120.35



188269.00



37963.40



226232.40



226232.40



641525.00 551931.60



2



32952.00



245741.00



35028.40



280769.40



507001.80



271162.20



3



28525.00



284885.00



36339.40



321224.40



828226.20



-50062.20



4



165.00



287833.00



42842.40



330675.40



1158901.60



-380737.60



5



0.00



290044.00



41342.40



331386.40



1490288.00



-712124.00



6



0.00



291348.00



33535.74



324883.74



1815171.74



-1037007.74



7



0.00



291348.00



33535.74



324883.74



2140055.48



-1361891.48



8



0.00



291348.00



33535.74



324883.74



2464939.22



-1686775.22



9



0.00



291348.00



33535.74



324883.74



2789822.96



-2011658.96



10



0.00



291348.00



33535.74



324883.74



3114706.70



-2336542.70



2.16



Annexure-XXI (Amount Tk. In “000”) ECONOMIC ASPECT Employment Generation :



222 3940.82



Cost Per Job : Contribution to GDP :



Person. Thousand



1st Year



2nd Year



3rd Year



4th Year



25,00,250



32,20,725



36,85,440



36,85,440



36,85,440



19,99,566



26,57,874



28,64,327



28,78,850



28,79,565



Store And Spares



1,164



1,747



2,329



2,329



2,329



Repair & Maintenance



1,588



2,170



2,752



2,752



2,752



2,105



2,105



2,105



2,105



2,105



16,958



21,196



22,608



22,608



22,608



425



468



510



510



510



Income



5th Year



Less Inter- Firm Transaction : Raw Materials



Rent , Tax & Insurance Utilities Postage & Telegram Stationery & Printing



85



106



128



128



128



850



1,063



1,275



1,275



1,275



Advertisement



425



638



850



850



850



Entertainment



170



213



255



255



255



85



85



85



85



85



Traveling & Conveyance



Audit Fee Other Expenses Sub-Total : Contribution To G. D. P :



1,48,818



1,96,671



2,11,899



2,11,899



2,11,899



21,72,238



28,84,333



31,09,122



31,23,645



31,24,360



3,28,012



3,36,392



5,76,318



5,61,795



5,61,080