8.

Accounting Potentials :
Five years summarized financial projection is shown below:
Particulars
Operating Mode:
Capacity Utilization
Operating Days per Year
Operating Hrs. per day
Operational Results:
Net Turnover ( "000"Tk)
Gross Profit("000" Tk)
Operating Profit ("000"Tk.)
Net Income after Tax ("000"Tk)
Depre.& Write off ("000"Tk.)
Contribution to GDP (Tk)
Growth Ratios:
Sales Growth
Gross Profit Growth
Net Profit Growth
Total Asset Growth
Total Liabilities Growth
Cost to Sales :
COG to Sales I Incl Depre.)
Admn. & Selling Exp. to Sales
Financial Expenses to Sales
Profitability Ratios:
Gross Margin (Gross Profit/Sales)
Operating Margin (EBIT/Sales)
Operating Efficiency Rations ( times)
Total Asset Turnover ( Net Sales /Total
Asset)
Inventory Turnover ( COGS/Total Stock)

1st yr.

2nd yr.

3rd Yr.

4th Yr.

5th Yr.

300
8

300
8

300
8

300
8

300
8

188,644
80,693
28,782
9,977
3,197
53,832

217,150
93,011
34,554
13,897
3,197
65,783

239,20
9
102,53
0
38,090

261,04
6
111,94
3
41,194

16,481
3,197
72,129

18,849
3,197
78,175

282,875
121,250
43,778
20,946
3,197
83,978

#DIV/0!
#DIV/0!
#DIV/0!
215.78%
312.12%

15.11%
15.3%
39.29%
10.22%
-3.00%

10.16%
10.2%
18.59%
10.34%
-4.63%

9.13%
9.2%
14.37%
10.62%
-5.71%

8.36%
8.3%
11.12%
11.56%
-4.98%

57.22%
27.52%
6.80%

57.17%
26.92%
5.67%

57.14%
26.94%
4.90%

57.12%
27.10%
4.23%

57.14%
27.39%
3.63%

42.8%
15.3%

42.8%
15.9%

42.9%
15.9%

42.9%
15.8%

42.9%
15.5%

1.71
2.65
0.42

1.78
2.73
0.37

1.78
2.73
0.30

1.76
2.73
0.26

1.71
2.73
0.22

137.97
41.42
11.03
168.36
1.68
62,500
18,347
80,847

133.84
41.43
11.94
163.33
1.80
62,500
14,349
76,849

133.78
41.43
11.92
163.29
1.92
62,500
9,754
72,254

133.81
41.44
11.92
163.33
2.03
62,500
4,472
66,972

133.77
41.47
11.91
163.33
2.33
62,500
0
62,500

Equity Turnover ( Net Profit /Total Equity)

Liquidity Ratio
Stock Turnover Days (Total Stock/
(COGS/365))
Detor Days on Hand (Debtor/COGS/365)
Creditor Days on Hand (Creditor/Net
Sales/365)
Cash Cycle Period (STOD+DDOH-CDOH)
Debt-Service Coverage Ratio
(Short
Times)
Term Loan
Long Term Loan
Debt ( STD+LTD)

9.

Debt- Service Coverage Ratio:

The analysis shows that the project will generate surplus fund after meeting its
all operational obligations to service its debt burden in due time. Minimum
DSCR has been estimated as 1.68 (times) during the 2nd operating year.

10.

Cost Benefit Ratio:

Calculated Cost Benefit Ratio of this Project is 1.14 which is acceptable for
investing fund.

22.
Factors of Production:
The project will procure mainly the components of the CFL and the Ballast and
packing materials etc. for production of Compact Fluorescent Lamp (CFL) and
Electronic Ballast. Quantities of material differ with size and type of the
product. These items are mostly imported but a portion can be arranged
locally. At 100% capacity utilization, the project would require total Raw and
packing materials to the tune of Tk. 223.502 million equivalent. The project will
generate direct employment opportunity to 156 persons besides creating
indirect employment opportunity to a large number of peoples with the
associated economic activities of the project.

Financial Aspect
Chapter5.1

Estimated Project Cost:

Sl
Items of Cost
No
1
Land & Land Development

Total
Cost
2

Equi
Amt % of
- 100%

Bank
Amt % of
0%

2
3
4
5
6
8
9
10
11
12

Building & other Civil Works

Machinery & Equipment
Duty, Taxes etc
Local Machinery & equipment
Erection & Installation
Vehicle
Office Equip. & Furniture &
Prel. & Pre-Production Exp .
Fixture
Interest
DuringDeposit)
Construction
(excl.
Security
Contingencies

At the end of the yr.

Capacity Utilization (%)
A. Fund Available for
Operating Profit (EBIT)
Add : Depreciation &
Amortization
Less : Corporate/Source Tax
Add: Interest Earning on
Total Fund Available for
B. Amount Required to
Service
the Debton Term
Prin.Instalment
Interest on Loans
Total amount regd. to
Interest Coverage Ratio
Average Interest Coverage

11,35
690
9
8,364
310
7,200
1,002
3,248
573
176
32,92
2,080.
3

690
2,17
310
5
4,32
1,00
0
3,24
2
8176
11,9
2,08
14,

100%
0%
100%
26%
100%
60%
100%
100%
0%
100%
36.21
100%
40.0

11,35
96,189
2,880
573
21,00
2

0%
100%
0%
74%
0%
40%
0%
0%
100%
0%
64%
0%
60%

1st Year

2nd

3rd Year

4th 5th Year

28,782
3,197
(5,986)
25,993

34,554
3,197
(8,338)
29,413

38,090
3,197
(9,888)
31,399

41,194
3,197
(11,30
9)33,081

43,778
3,197
(12,567
)34,407

2,654
12,819
15,472
2.03

3,998
12,318
16,316
2.39
2.50

4,595
11,721
16,316
2.68
times

5,281
11,035
16,316
3.00

4,472
10,265
14,737
3.35

5.6 Estimated Balance Sheet :

5.7
The projected balance sheet of the company shows that the concern is expected
to maintain a healthy financial position during the operational life. Detailed
calculations are as under:
Tk. in 000
ASSETS:
Capacity Utilization
Current Assets:
Cash & Bank
Inventories

Constr 1st Year

Year
45%
2,080
-

10,484
40,805
3

2nd
50%

3rd
55%

4th
60%

5th
65%

16,201
45,521

24,038
50,094

33,548
54,660

45,889
59,236

Adv.( Wages &

Salaries)
L/C Margin
Advance Payment
Others Payment
Accounts Receivable
Tot. Current Assets
Fixed Assets:
Gross Fixed Assets
Less
Accum.Depreciation
Net Fixed Asset
Investment
Total Fixed Asset
Intangible Asset:
Gross Prel & PreLess : Accumulated
Amortization
Total Tangible
TOTAL ASSETS :
LIABILITIES &
Current Liabilities
S.T Loan
Advance Received
Others Payable
Dividend
Investment against
Tax
Reserve
CMTD
Corporate
Total Current
Long-Term
Long Term Loan
Sub-total:
Total Loan &
Equity:
Paid-up
Capital./Share
money
Tax Holiday Reserve
(Retained
Investment)
Earnings
Total Equity
Total Liability &
Diff:

2,080

3,930
3,218
816
140
21,408
80,801

4,289
3,576
910
156
24,645
95,298

4,699
3,934
1,002
171
27,153
111,09

5,149
4,291
1,093
187
29,638
128,56

5,643
4,649
1,185
203
32,142
148,94

29,100
29,100
29,100

29,100
2,433
26,667
26,667

29,100
4,866
24,234
24,234

29,100
7,299
21,801
21,801

29,100
9,731
19,369
19,369

29,100
12,164
16,936
16,936

3,820
3,820
35,00

3,820
764
3,056
110,52

3,820
1,528
2,292
121,8

3,820
2,292
1,528
134,4

62,500
898
4,803
3,998
72,199

62,500
1,001
6,100
4,595
74,196

62,500
1,102
6,710
5,281
75,593

62,500
1,203
7,320
4,472
75,495

62,500
1,303
7,930
71,734

21,000
21,000
21,000

14,349
14,349
86,547

9,754
9,754
83,950

4,472
4,472
80,066

0
0
75,495

0
0
71,734

14,000
14,000
35,000
-

14,000
9,977
23,977
110,52
-

14,000
23,875
37,874
121,82
-

14,000
40,355
54,355
134,42
-

14,000
59,204
73,204
148,69
-

14,000
80,150
94,150
165,88
-

Economic Aspect
4

3,820
3,820
3,056
3,820
764
148,6 165,88

Chapter6.1

Contribution to GDP:
The unit will contribute a significant amount to the Gross Domestic Product
(GDP) of the country. Estimated weighted average GDP is Tk. 556.370 million,
details are as under:
Tk. in 000
Particulars
1st
2nd
3rd
4th
5th

Raw & Packing Material

Bank Charge and Other
Import
Factoryexpenses
Rent
Stores & Spares
Repair & Maintenance
Carriage Inward
Insurance (Fac)
Energy, Fuel, Other Lubricant
Other Manufacturing
Overheads
Office Supplies (Stationary &
Printing)
Postage, Telephone , Fax etc.
Travelling
Office Rent , Tax, etc.
Auditor's Fee
Marketing, Sales
Commission,
& of Vehicle
Stores & Spares
Misc.Expenses ( Admn.)
C. Total of B
D. Contribution to GDB
E. Average Yearly

603
58
17
99
701
100
84
400
120
3,097
50
28,297
360
250

671
144
58
99
762
105
92
460
144
3,716
60
32,573
432
300

738
173
115
99
824
110
102
529
173
4,460
72
35,881
518
360

805
173
115
99
885
116
112
608
207
5,352
86
39,157
622
432

872
173
115
99
946
122
123
700
249
6,422
104
42,431
746
518