Asking lend US$60 Million, specially from the Muslim Lender / Investor with low profit share as 2.5%

Asking lend US$60 Million, specially from the Muslim Lender / Investor with low profit share as 2.5%

PRE-INVESTMENT FEASIBILITY REPORT on

TRANSPORT BUSINESS at Bangladesh of
One Click BD LIMITED at
Ashulia, Savar and Bogra

Corporate Office:
Room 03, 3rd floor, 3/3B Purana Paltan
Dhaka-1000
Tel: 88-02-7176307, 88-01710-962792
Email: seekinvestor2007@yahoo.com

TABLE OF CONTENTS

Items
Introduction
Project Summary
Management & Organization
Technical aspect
Market Aspect
Cost of the project
Cost Estimate of Building & Civil Works
Local Machinery
Imported Machinery
Working Capital
Earning forecast
Sales Revenue
Sensitivity Analysis
Operating Expenses
Wages & Salaries
Estimate of general, admin & other expenses
Financial expenses
Break-even Analysis
Cash Flow Statement
Debit Services Coverage Ratio
Pay Back Period
FIRR
Benefit of the project
Contribution to GDP
Balance sheet

INTRODUCTION

One Click Ltd is a private limited company. The company has taken up a program to set up a transport business for inter district luxury bus services. The project has been designed to equip with imported 100 luxury bus from China. Local machinery and equipments to be procured locally. The project workshop will be located at Ashulia Savar and Bogra.

The proposed project will be equipped with most modern and sophisticated luxury bus and equipment to be collected from reputed supplier at competitive price. The project will be run by highly trained and skilled manpower. The project will be self-sufficient continuous free operation of the daily bus services.

One Click Ltd has appropriate technical and management resource persons to run the bus services, expecting to earn huge revenue and create employment opportunity thus contribute socio-economic development of the country.

The Managing Director and other Director of the Project have dynamic leadership in various Business sector and they have sufficient means and wealth in the country to provide equity of the proposed project. So, the proposal for sanctioning loan from bank/financial institution may be accepted to all concern authorities with great pleasure.

Marketing Aspect
Introduction
Bangladesh tends to be thought of as poverty-stricken and disaster-prone - a pity for a fascinating and beautiful country with a friendly, welcoming population. The transport sector of Bangladesh consists of a variety of modes. The country being a flat plain, all three modes of surface transport, i.e. road, railway and water are widely used in carrying both passengers and cargo.

More than half of Bangladesh has access to an all-weather hard surface road within 3 miles distance. There has been a dramatic expansion of road network in recent years. In 1947 there were only 461.8 kilometers of carpeting / metalled roads. In 1997, the total length of paved road under the Roads and Highways Department stood at more than 20,000 kilometers. It is estimated that mechanized road transport carry about 70% of the country's total passenger and cargo volume.

Local Bangladeshi buses are generally crowded, often to the extent of people riding on the bus steps (entrance) and sometimes even the roof. The state run Bangladesh Road Transport Corporation www.brtc.gov.bd (BRTC) buses usually fall into this catergory. However, there are luxurious air conditioned bus services connecting major cities and popular tourist destinations. Green Line www.greenlineparibahan.com, Shyamoli shyamoli.paribahan.com, Silk Line but these are still not sufficient for our need.

Financial plan: Figure in "000"
Foreign Loan/Fund 60000K, where Sponsor's Equity (0%)
Total debt and equity: 100:0

Cost of production and profitable:
A statement showing forecast of earning which enter all includes cost of production, sales estimates, financial, admin incentive & selling expenses is given in Annexure. The main assumptions underlying the earning forecast are as under:

I. The capacity utilization of the project will be 70%, 80% & 90% from the first year to 3rd year and so no respectively.

II. The cost of raw materials as well as sales will be the same throughout the projected years on the assumptions price, incase raw materials be up set the proportionate price increase in sales. HI. There will be 5% increase in salaried & wages and a bonus equal to 2 (two) month basic will be given each year. IV. Depreciation has been charged @ 20% on Machinery @ 5% in building and 20% in furniture and fixture & pre-operating expenses on straight -line method.

PROJECT SUMMERY
1 Name of the project: One Click Ltd.
2 Location of the project: Office: Room 03, 3rd Floor, 3/3B, Purana Paltan, Dhaka-1000. Tel: 88-02-7176307, 8801710962792 Email: seekinvestor2007@yahoo.com
3 The Project:
The project envisages setting up of a transport business for inter district luxury bus services. The project has been designed and equipped with imported 100 luxury buses from China. Local machinery and equipments to be procured locally.
4 Proposal:
Request for issuance Bank Comfort Letter for issuance Bank Guarantee against foreign loan of US$ 60.00 million, where US$ 30 million will be deposited to the bank and US$ 30 million to meet the cost of imported luxury bus and a part of civil construction cost and other related costs.
5 Industrial classification:
The project is covered under Transport Sub Sector and since its total fixed cost is above Tk.30 crore (US$ 4.286 mln) it will be treated as a large scale industry as per industrial policy 1999.

6 Promoters: The project is being promoted by a group of two directors in the company and formed a private limited company and registered with the Joint Stock Company.

7 Land and Location: The project workshop will be located at Savar, Ashulia and Bogra.

8 Building and other civil works: The proposed cost of building and civil works has been estimated at US$ 4.559 million.

9 Plant and Machinery:
A. Imported Machinery: The cost of the proposed imported machinery including the related expenses works out at US$ 14.695 million.

B. Local Machinery: The project requires some local machinery. The proposed cost of which works out at US$ 0.683 million.

10 Technical service & quality control: The suppliers of luxury bus will depute four foreign experts for three years to undertake the job of operational works and quality control. They will be treated as in service experts of the project and will be responsible for operation performance and maintenance of the luxury bus. They will also trend up the drivers and local technicians.

11 Erection and installation: Erection, installation, trial run operation and commissioning will be carried out by local erectors under the overall guidance & supervision of the experts to be deputed by the company cost estimated US$ 0.05 million.

12 Corporate set up: Private Limited Company

13 Product capacity of the project: The annual rated luxury bus services of the project based on three shifts of eight hours each per day and three hundred sixty working days in a year.

15 Market aspect Road transport in Bangladesh is a private sector affair operating predominantly in domestic routes. The project is being established inter district bus services by Luxury Bus. The maintenance of its appropriate quality with other similar types of Luxury Bus service, it is expected that appropriate measures will be under taken. The project has captive market and entire Luxury bus will be in operation.

16 Economic aspect The project after implementation will create new job opportunity for 657 persons of different categories.

17 Machinery The project will require both imported
and local machinery.
Means of Finance:
Foreign Fund (100%) US$ 60.00 Million
18 Debt- Equity ratio 100: 0

19 Financial Performance: Yr-1 Yr-2 Yr-3 Yr-4 Yr-5
Sales 13,961 15,949 17,949 17,949 17,949
Gross Profit 8,123 9,750 11,376 11,126 10,897
Operating profit 7,305 8,876 10,446 10,137 9,878
Net profit after tax 4,167 4,210 5,152 4,966 4,811

20 Ratio % Yr-1 Yr-2 Yr-3 Yr-4 Yr-5
Gross Profit to Sales 58 61 63 62 61
Operating profit to sales 52 56 58 56 55
Net profit after tax 30 26 29 28 27

21 Debt service coverage: 3.01 3.70 4.08 4.02 3.98

22 Break Even Point Break even sales
34.82% of the assumed capacity

23 Employment Generation 657 Nos

24 Contribution to GDP US$ 14.913 million

25 FIRR 36.34%

Conclusion and Recommendation:
It reveals from the financial analysis that the project will be a profitable concern. The ratio analysis is satisfactory and acceptable. The project will have sufficient liquidity to pay all its liabilities. The BEP analysis shows sound position. The IRR indicate higher rate of return. The project will contribute to National Economy. In view of the above facts, it is found that the project is commercially, technically viable, Socially acceptable and financially rewarding. So investment from Bank/Financial Institutions may be highly recommended.

INTRODUCTION, PROMOTERS & MANAGEMENT

Introduction
The promoters of One Click Ltd. is being applied for financial assistance for setting up a Transport Project at Ashulia, Savar and Bogra, Corporate Office: Room 03, 3rd floor, Soleman plaza, 3/3B Purana Paltan, Dhaka-1000 Tel: 7176307, Fax: …………….. The total cost of the project' has been estimated at USD. 60 million..

Corporate set up: Limited Company.

Promoters and Management.
SI. No. Name of the Person Position in the Company No. of Shares
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX will be submit after finalization
Management and Organization:
The overall affair of the company is vested with the Managing Director who will formulate the company's day to day policy with the help of the other Director. Experienced and skilled personnel will be deputed from the manufacturer of the luxury bus and recruited locally for smooth running of the project.

The proposed project will be equipped with most modern and sophisticated luxury bus and equipment. The workshop will be am by highly trained and skilled manpower. The project will be self-sufficient continuous trouble free operation of daily bus services. The Managing Director and other Director of the project have dynamic leadership in various businesses and sector. So, the proposal for financial assistance may be accepted to all concern authorities with great pleasure.

Land and location
The selected location is cheaper than other areas. Tariff structure can be availed. Transport facilities to run the project will not be problem. Manpower availability is enough.

TECHNICAL ASPECT
INTRODUCTION
The project will be set up at One Click Ltd, Ashulia, Savar and Bogra, Corporate Office: Room 03, 3rd floor 3/3B Purana Paltan, Dhaka-1000. Tel: 7176307, Fax: ………….. on the area of 20-acre land to carry on transport business. The project land is well communicated by road. All the infrastructure facilities like Wide Road, Wide Channel, Gas, Electricity etc. are available in the project area.
For the selection of proposed luxury bus have been procured on the basis of performance considering versatility durability, cost benefit and improved operational performance. The required selected luxury bus is useful and balanced for the project and the prices of the luxury bus are competitive.

GUARANTEE AND WARRANTY:
All the items of the project offered by the suppliers a complete/ balance unit, guaranteed and trouble free performance/operation of all luxury buses, equipments and materials of the project for a period of three years from the date of operation of the bus services and also shall undertake the warranty of replacement free of cost of any part of the entire project as the case may be due to manufacturing defects. Suppliers shall be responsible for the efficiency and capacity of the luxury bus and other equipments on the trial production period.

TECHNICAL SERVICE AND SUPERVISION:
Manufacturer shall depute four engineer to the BUYER'S work site to supervise the bus services, will also continue their services for the project for three years.

PRODUCT MIX AND PRODUCTION CAPACITY
The annual capacity of daily bus services of the project has been calculated on the basis of rated capacity the working days considered 360 days in year.

Items Quantity (At 100%Capacity) USD IN 000
Production Passangor Daily Service Unit sales Total Value price in USD.
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX will be submit after finalization Total US$19,944K

Land and location
The projected will be located at Ashulia, Savar and Bogra. The place is very suitable for setting up Transport Project. All infrastructure facilities like road, channel, power, water and commercial facilities are available at the project site.

Building and other civil works
The civil construction of the proposed project for main Factory' Building, raw materials go-down, finished goods go-down, generator room, sub-station room, workshop and maintenance room, boiler house, workers shed, security barrack, office building etc. Cost of the building & other civil works has been estimated at USD 4.559 million.

Machinery and Equipments
Imported Machinery
The project will be equipped with brand new most modern and sophisticated luxury bus with all auxiliaries and equipment. The luxury bus for the project will be imported from China.

Machinery: CNG Luxury Bus, CNG Station complete, Petrol Pump.

Local Machinery: In addition to the importable machinery, the project will also require some local machinery and equipment these are Generator, Transformer, Electric control panel, Electrical cables, Pipes, etc.

Erection and Installation: The machinery and equipment of the project will be installed, commissioned and put under trial run under the direct supervision of the foreign erectors to be deputed by the suppliers in this regard.

Utilities:
Power: The connected load of the project has been estimated at 440 KVA. The maximum requirement of power will be 400 KVA. The required will be available from
REB/DESA/PDB besides there will be a standby Generator of 333 KVA. For emergency purpose.
Connected 440 KVA
Maximum load 400 KVA
Source PDB

Fuel and Lubricant:
Item Quantity
Grease 2500 kgs
Lubricating Oil 10000Itrs
Diesel 620000 Itrs
Petrol 120000 Itrs

Water: The total requirement of water for the project there shall be a Submersible pump.

Furniture Fixture and office Equipment: The project has office furniture fixture, computer, fax, telephone etc for which and amount of USD 25 thousand has been estimated.

Safety Provision: To first against fire, necessary fire fighting equipment and first aid box has been required for which an amount of USD 25 thousand has been estimated.

Environmental impact: Changes of environmental pollution are nil. Therefore, there will be no impact on environment because of erection and operation of the plant. No change of ecological imbalance is there.
Stores and Spare: Store and Spare for the project has been estimated 1%, 1.55 & 2% for the 1st, 2nd and subsequent Years for total machinery cost.

Repair and Maintenance: The total manpower requirement of repair and maintenance for the machinery has been established at it 1%, 1.55 & 2% of its cost for 1st, 2nd and 3rd year operation respectively.

Manpower Requirement: The total manpower requirement for the project during commercial operation has been shown below and will be recruited locally.

A) Administrative:
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX will be submit after finalization
B) Technical personnel:
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX will be submit after finalization

Total Manpower will be (A+B) = 657 persons

Rents, Tax & Insurance: The rents and insurance`s have been estimated @ 1% of the Fixed Assets of the project.
Depreciation and Amortization: The following basis has been used for calculation of depreciation on Fixed Assets of the project:

Fixed Assets Depreciation Rate
Factory Sheds/ Building 5% P.A.
Machinery/ Equipment 20% P.A.

Cost of Installation: The expense is composed of the cost of expatriate and local manpower necessary for erection of the plant. The erection cost is estimated of USD 50 thousand.

Foreign Direct Investment (FID) has played a key role a key in the modernization of the Bangladesh economy for the last 15 years.

Inflows of foreign direct investment

There was an inflow of $666m foreign direct investment in 2007, which rose significantly in 2008 to $1086m. As of June 2009, inflows of foreign direct investment recorded to $358m.

Foreign and joint venture investment

In the year 2009-10 (February), three were 89 new foreign and joint venture investment project registered to BOI which amount to $590m. The project was invested to mainly in the service engineering clothing and auricular sectors.

Sector wise foreign and joint venture investment during 2009-2010*

* As of February, 2010
Source Bangladesh Economic Review-2010 (Bangla version), Ministry of Finance Country wise foreign and joint venture investment during 2009-2010*

Country No. of project Proposed investment (US$ m)
Saudi Arabia 3 478,652.17
Australia 4 2,036.23
USA 5 2,990.33
Finland 2 3,023.89
India 9 8,451.53
South Korea 12 33,768.91
Malaysia 3 3,056.52
Netherlands 5 8,544.76
China 12 21,000.36
United Kingdom 5 3,507.85
Pakistan 2 990.91
Japan 8 2,624.85
Denmark 1 1,217.39
Sir Lanka 2 646.23
Canada 2 1,017.23
Taiwan 1 502.97
Singapore 4 1,929.62
Turkey 1 150.94
Greece 1 156.81
Italy 2 1,039.95
Hong Kong 5 14,805.94
Total 89 590,114.91

As February, 2010

COST OF THE PROJECT

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX will be submit after finalization

Means of Finance:
Foreign Fund 60,000,000 US$

COST OF BUILDING & OTHER CIVIL WORKS OF ONE CLICK LTD.

(Existing)
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX will be submit after finalization

1 Main workshopAt Gazipur XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX will be submit after finalization
2 WorkshopMadangonj XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX will be submit after finalization
3 Workshop atBogra XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX will be submit after finalization
4 Ducthumidification XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX will be submit after finalization
5 ResidentialBuilding XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX will be submit after finalization
6 AdministrativeBuilding XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX will be submit after finalization
7 Workshop & Quarter XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX will be submit after finalization
8 Scrap Yard
9 Raw Material Store
10 Boundary wall XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX will be submit after finalization

11 Surface Drain Surface drain

12 Internal road Road Size: 167368mx 7.62m

13 Water tank Water tank over the root of

Factory building Size: (ht-2.0) 8.7mx5.48m

14 Electrical Meter Size: ½ ´10-76´8.53´1/2 room

15 Spare parts Size: 1´25.91ms ´45.12m
Store (First Floor)

16 Air compressor Size: 1´ 10.97m ´ 17.37m
Store (First Floor)

Total 4559

LOCAL MACHINERY

Sl No. Item Quantity Unit Price Total Price
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX will be submit after finalization

Per- Operating Expenses

Sl No Item Total Price
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX will be submit after finalization

IMPORTED MACHINERY (Proposed)
USD in “000”
Sl No. Particulars Quantity Unit Price Total Price
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX will be submit after finalization
14,695

LIST OF VECHICLES

USD in “000”
Items Quantity Unit Price Total Price (USD)
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX will be submit after finalization

WORKING CAPITAL REQUIREMENT

USD in ‘000’

A) Current Assets:XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX will be submit after finalization

B) Current Liabilities:
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX will be submit after finalization
Net working capital requirement
(%) Sponsors Equity - - ---
Net Working Capital 52 58 64 70 77

EARNING FORECAST USD in ‘000’

Sales revenueCost of goof soldGross ProfitAdmin & selling expNet Operating ProfitFinancial expenseNet profit before Tax Yr-113,9615,8388,1238187,3053606,645 Yr-215,9556,2059,7508748,8761,8607,016 Yr-317,949657311,37692910,4461,8608,586 Yr-417,9496,82411,12698810,1371,8608,277 Yr-517,9497,05210,8971,0209,8781,8608,018

Tax 40%Net profit after tax 27784,167 28064,210 34355,152 33114,966 32074,811

Reserve fund for currencyFluctuation (2%)Profit after reserve fundReturn on fixed deposit of currencyFluctuation amount (9%)Profit after return on fixed depositShare Holder Dividend (10%)Retained earningRatios:Gross profit to salesOperation profit to salesNet Profit to salesXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX will be submit after finalization

SALES REVENUE

USD in ‘000’

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX will be submit after finalization
Assumptions Sales Estimate
Assumptions:
1. Operating Time and Production period: 360 working days in year.
2. Assumed capacity Utilization : 70%, 75%, 80%, 85%, for the 1st, 2nd, 3rd, 4th years respectively and 90% for the 5th and subsequent years:

USD in ‘000’

Production Passenger Daly service Unit salesPiece in USD Total Value
(a) Dhaka to Chittagong(b) Chittagong to Dhaka© Dhaka to Cox`s Bazar(d) Cox`s Bazar to Dhaka(e) Dhaka to Sylhet(f) Sylhet to Dhaka(g) Dhaka to Jessore, Khulana(h) Dhaka to essore, Khulana(i) Rajshahi to Dhaka(j) Dhaka to Rajshahi(k) Dhaka to Rangpur, Dinajpur(l) Rangpur, Dinajpur to Dhaka(m) Dhaka to Bogra, Noagaon(n) Bogra, Noagaon to Dhaka(o) Dhaka to Barishal(p) Barishal to Dhaka
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX will be submit after finalization

SENSITIVITY ANALYSIS-I

(On the basis of 10% decrease in the sales price)USD in ‘000’

Sales revenueCost of goof soldGross ProfitAdmin & selling expNet Operating ProfitFinancial expenseNet profit before Tax XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX will be submit after finalization

Tax 40%Net profit after tax 2,2193,329 2,1683,252 2,7174,075 2,5933,889 2,4893,734

Reserve fund for currencyFluctuation (2%)Profit after reserve fundReturn on fixed deposit of currencyFluctuation amount(9%)Profit after return on fixeddepositDividend (10%)Retained earningRetained earning : XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX will be submit after finalization
SENSITIVITY ANALYSIS-II

(On the basis of 10% increase in production cost)
USD in ‘000’

Sales revenueCost of goof soldGross ProfitAdmin & selling expNet Operating ProfitFinancial expenseNet profit before Tax XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX will be submit after finalization

Tax 40%Net profit after tax Y1=2,7784,167 Y2=2,8064,210 Y3=3,4355,152 Y4=3,3114,966 Y5=3,2074,811

Reserve fund for currencyFluctuation (2%)Profit after reserve fundReturn on fixed deposit of currencyFluctuation amount(9%)Profit after return on fixeddepositDividend (10%)Retained earningRetained earning : XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX will be submit after finalization

SENSITIVITY ANALYSIS-III

(On the basis of 10% increase in production cost
And 5% decrease in the sales price)
USD in ‘000’

Sales revenueCost of goof soldGross ProfitAdmin & selling expNet Operating ProfitFinancial expenseNet profit before Tax XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX will be submit after finalization

Tax 40%Net profit after tax y1=2,3823,573 Y2=2,3633,545 Y3=2,9444,416 Y4=2,8154,223 Y5=2,7074,061

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX will be submit after finalization

OPERATING EXPENSES

USD in ‘000’
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX will be submit after finalization

ASSUMPTIONS COST OF RAW MATERIALS

Equipment of raw materials USD in ‘000’

Qty Unit Price Total
CNG for 100 bus 100Cum 0.22 803
Per bus per day other expense 100 10 365
Ticket Counter per month rent 100 20 24
Ticket yearly 10 1202

Factory wages and salaries:
USD in ‘000’
Technical Nos. Salary Annual salary

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX will be submit after finalization

Requirment of Water. Power. Fuel & Lubricants:
Water:
Sources of water: Project's own water supply system.
Power:
a) Source of power for operation: Projects own generator.
b) Power development Board: For domestic use and general lighting. The
consumption of power for this purpose has been estimated as under:
Total Consumption: 400KW X 16 Hrs. X 360 = 2304000 KWH
Cost: 2304000 KWH X 4 = Tk. 9216000
Govt. duty 2304000 KWH X 0.15 = Tk. 345600
Total Tk in "000" 9562
USD in "000" 137

Fuel and Lubricant:
Item Quantity Rate in US Total Cost in USD
Grease 2500kgs 2.3 6
Lubricant Oil 10000 Itrs 0.6 6
Diesel 620000 Itrs 0.65 403
Petrol 120000 Itrs 1.15 138
Total 553

Total power & Fuel consumption:
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX will be submit after finalization
Stores and Spares
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX will be submit after finalization
Repair & Maintenance
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX will be submit after finalization

Rent. Tax, Insurance (1% of fixed cost) 300

Depreciation
Item Amount Rate Amount
a) Building 4,559 5% 228
b) Machinery 15,378 20% 3076
3304

Misc. Overhead expenses

General Administrative and Selling Expenses USD in ‘000’
Yr-1 Yr-2 Yr-3 Yr-4 Yr-5
Salaries (Admin) 541 568 597 627 658
Directors Remunerations 137 137 137 137 137
Postage, Telephone.E-mail, etc. 5 7 8 10 10
Stationery & Printing 5 7 8 10 10
Traveling & Conveyance 7 8 9 10 10
Depreciation & Write off 26 26 26 26 26
Audit fee 1 1 1 1 1
Misc. expenses 96 120 144 168 168
818 874 929 988 1,020
Assumptions:
Admin. Salary

No. of Proposed
Designation Salary Annualsalary
1 General Manager 1 1500 18
2 Manager (Admin) 1 500 6
3 Admin. Officer 2 300 7
4 Accounts officer 2 300 7
5 Commercial Officer/Asstt.com.Of 6 200 14
6 Stores Officer 2 150 4
7 Medical Officer 2 300 7
8 Medical Asstt. 6 150 11
9 Security Officer 1 150 2
10 Labour Officer 1 150 2
11 Asstt. Accountant 2 100 2
12 Wage Clerks 2 100 2
13 Computer/telex/fax operator 2 100 2
14 Time Keeper 2 100 2
15 Clerk-cum-Typist 3 100 4
16 Compounder 2 100 2
17 Driver 6 150 1
18 Bus Superviser 100 120 144
19 Security Guard 4 100 5
20 Peon 4 100 5
21 Sweeper 2 80 2
260
Marketing
22 Ticket Sales Man 100 100 120
23 Ticket Sales Asstt. 100 70 84
Total 353 464

Yr-1 Yr-2 Yr-3 Yr-4 Yr-5
Basic 464 464 487 511 537
Increment @ 5% - 23 24 26 27
464 487 511 537 564
Bonus (2 months basic) 77 81 85 90 94
Total 541 568 597 627 658
30

Depreciation % write off
Item Cost Rate Total
2. Vehicles 93 20% 19
3. Safety equipments 10 20% 2
4. Office equipment, furniture & fixtures 25 20% 5
Total - 26

Postage, Telephone & E-mail: 1st yr. US$ 5000, 2nd yr, US$ 7000, 3rd yr, US$ 8000,4th yr. US$ 10000 and 5th yr. US$ 10000 has been considered each year.

Stationary & Printing : 1st yr. US$ 5000, 2nd yr, US$ 7000, 3rd yr, US$ 8000,4th yr. US$ 1000 and 5th yr. US$ 1000 has been considered each year.

Traveling & Conveyance : 1st yr. US$ 7000, 2nd yr, US$ 8000, 3rd yr, US$ 9000,4th yr. US$ 1000 and 5th yr. US$ 1000 has been considered for each year.

FINANCIAL EXPENSES
USD in ‘000’

Financial ExpensesLocal BG Fee 1.20%Internet 2.5%Total Yr-1360-360 Yr-236015001860 Yr-336015001860 Yr-436015001860 Yr-536015001860

Assumptions:
Principal Amount 30,000 27,857 25,715 23,572 21,429
Installment 2,143 2,143 2,143 2,143 2,143
Balance Interest on average 27,857 25,715 23,572 21,429 19,286

Interest @ 2.5% on USD 60 million - 1,500 1,500 1,500 1,500

BREAK EVEN ANALYSIS

1. Revenue excluding other income (5th year): 17,949
2. Total cost of operation, Admin. 9,728
Selling, Financial expenses

Break Even Analysis:
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX will be submit after finalization

I) PA/ Ratio S-V 17949-3038 14,924 0.83
S 17,949 17,949
II) Breakeven sales F 5,196 6,249
P/V Ratio 0.83

Break even sales
34.82% of the assumed capacity

CASH FLOW STATEMENT

USD in ‘000’
A. Source of fund Cont. Yr. Yr-1 Yr-2 Yr-3 Yr-4 Yr-5
Paid up capitalOperating profitIncrease in current liabilitiesDeprecation & write offLoan from Foreign LenderTotal ---30,00030,000 7305523329-10,686 -887663329-12,211 -1044663329-13,782 -1013763329-13,473 -987863329-13,213

B. Utilization of fund
Fixed capital expenseIncrease in current assetsRepayment of principal amountTaxDividendCurrency fluctuation factorPayment of interestTotal 30000----30,000 -522,1432,778812600360-6,748 -62,1432,8069755571,8608,348 -62,1433,4351,1385141,8609,095 -62,1433,3111,1134711,8608,904 -62,1433,2071,0904291,8608,735

Cash Surplus (A-B)Opening balance of cashClosing balance of cash --- 3,941-3,941 38643,9417,805 4,6867,80512,491 4,56912,49117,060 4,47917,06021,538

DEBT SERVICE COVERAGE RATIO

USD in ‘000’
Income Yr-1 Yr-2 Yr-3 Yr-4 Yr-5
Profit after dividendDepreciation and write offInterest on term loanTotal 2,7553,3293606,444 2,7313,3291,8607,921 3,5503,3291,8608,739 3,4293,3291,8608,618 3,3353,3291,8608,524

Liabilities
Installment of term loanDebt service coverage ratio (Time) 2,1432,1433.01 2,1432,1433.70 2,1432,1434.08 2,1432,1434.02 2,1432,1433.98

PAY BACK PERIOD

1. Amount to be paid back (project Cost) 93437
2. Amount to be available for recovery of value the assets:-
Item Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7-10
Net ProfitDepreciation 2755 2731 3550 3429 3335 3335 3335
3329 3329 3329 3329 3329 3329 3329
Total 6084 6061 6879 6758 6664 6664 6664

Pay Back Period = 4.63 Years

FINANCIAL INTERNAL RATE OF RETURN

Year Cost Benefit Net cash flow NPV discounting35% NPV discounting40%
012335-9 year10 Salvage Value 30,0005266666 -10,63412,20513,77613,46613,2071,302 (30,000)10,58212,19913,76913,46013,3011,302 (30,000)7,8416,6975,5904,0526,64065 (30,000)7,5556,2225,0123,5005,24146
885 (2,425)

FIRE = 36.34%

Assumptions
b) The project life (economic) is considered to be 10 years without any major replacement.
c) The fixed cost of the project is estimated at US$ 30 Mln.

BENEFIT OF THE PROJECT

Year Operating Profit Depreciation Total
12345 7305887610446101379878 33293329332933293329 10,63412,20513,77613,46613,207

Salvage value
LandBuildingMachineryInventory Cost 100%10%5%100% -45676977
1,302

Inventory Calculation Yr 1 Yr 2 Yr 3 Yr 4 Yr 5
WagesFLS & S 2920352 3022658 32231064 33241370 35261677
Incremental Inventory 6 6 6 6 6

1. Contribution to GDP:
The project will contribute an amount of US$ 14.913 mln to the gross domestic products of the country which is shown as under: US$ in '000'
A. Net Sales (5th year) 17,949

B. Inter-farm Transaction:
Raw materials 1,202
Repair & maintenance 330
Rent, Tax & insurance 300
Water, Power & Fuel 620
Stores & Spares 384
Postage, Telephone & Telegram 10
Printing & Stationery 10
Traveling & Conveyance 10
Audit fee 1
Misc. overhead 168
Total: 3,036

C. Contribution to GDP( A-B) 14,913

2. Directs employment generation 657 persons. Most of employees will be skilled and unskilled Labour. From this point of view the project will help to improve distribution of income. Besides, additional employment opportunities will be created for production, supply and distribution of materials and products.

PROJECTS BALANCE SHEET

Const.
ASSETS Year Yr-1 Yr-2 Yr-3 Yr-4 Yr-5
Current assetsCash & Bank balanceOther current assetsTotal current assets - 3,941523,993 7,805587,863 12,4916412,555 17,0607017,130 21,5387721,615

Fixed assets
Fixed assets NetReturn on BondTotal Fixed assetsTotal assets 30,00030,00030,000 26,67126,67130,664 23,3425423,39631,259 20,01310420,11732,672 16,68415016,83433,964 13,35419313,54735,162

LIABILITIES & OWNERS EQUITY
LiabilitiesTerm loanShort term loanTotal liabilities 30,00030,000 27,8575227,909 25,7155825,773 23,5726423,636 21,4297021,499 19,2867719,363

Equity
Paid up capitalRetained earningsTotal equityTotal liabilities & equity --30,000 -2,7552,75530,664 -5,4865,48631,259 -9,0369,03632,672 -12,46512,46533,964 -15,80015,80035,162