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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