1. TRANSPORT BUSINESS AT BANGLADESH
Asking US$60 million from any overseas lender / financial
consultant firm, with very low interest rate (including
consultancy fees and interest/service charge, not over than
2% P.A.)
Potential project transportation business at Bangladesh
This project is very suitable for
Joint Venture with any Muslim
Investor against Profit and Loss
sharing basis
Page 1 of 34
2. TRANSPORT BUSINESS AT BANGLADESH
PRE-INVESTMENT FEASIBILITY
REPORT
on
TRANSPORT BUSINESS AT BANGLADESH
for
XXXXX BD LIMITED
at
Madanpur, Gazipur and Bogra
Corporate Office:
Suite 03/3rd
floor, 3/3B Purana Paltan, Dhaka-1000
Tel: 88-02-7976307, 88-01710-962792
Email: seekinvestor2007@yahoo.com
Page 2 of 34
4. TRANSPORT BUSINESS AT BANGLADESH
TABLE OF CONTENTS
Items Page
Introduction 1
Project Summary 2
Management & Organization 5
Technical Aspect 7
Market Aspect 11
Cost of the project 14
Cost Estimate of Building & Civil Works 15
Local Machinery 17
Imported Machinery 19
Working Capital 21
Earning forecast 22
Sales Revenue 23
Sensitivity Analysis 24
Operating Expenses 27
Wages & Salaries 28
Estimate of general, admin & other expenses 30
Financial expenses 32
Break-even Analysis 33
Cash Flow Statement 34
Debit Services Coverage Ratio 35
Pay Back Period 36
FIRR 37
Benefit of the project 38
Contribution to GDP 39
Balance sheet 40
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5. TRANSPORT BUSINESS AT BANGLADESH
INTRODUCTION
Xxxxxx 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 / (200+ for JV) luxury bus from China. Local machinery and
equipments will be procured locally. The project workshop will be located at Madanpur,
Gazipur 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.
Xxxxxx 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 / metallic 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 category. However, there are
luxurious air-conditioned bus services connecting major cities and popular tourist destinations.
Page 5 of 34
6. TRANSPORT BUSINESS AT BANGLADESH
Green Line, Shyamoli shyamoli.paribahan.com, Silk Line but these are still not sufficient for our
prime need.
Financial plan: Figure in "000"
Foreign Loan/Fund: FDI / US$60,000K, where Sponsor's Equity (0%)
Total debt and equity: 100:0
Percentage Sharing: Negotiable with JV Capitalist/ Private Investor
Cost of production and profitability:
A statement showing forecast of earning which enter all includes cost of production, sales
estimates, financial, admin incentive & selling expenses is given in Annexure. The main
assumptions underlying the earning forecast are as under:
I. The capacity utilization of the project will be 70%, 80% & 90% from the first year to
3rd
year and so no respectively.
II. The cost of raw materials as well as sales will be the same throughout the projected
years on the assumptions price, incase raw materials be up set the proportionate
price increase in sales.
III. There will be 5% increase in salaries & wages and a bonus equal to 2(two) months
basic will be given each year.
IV. Depreciation has been charged @ 20% on Machinery @ 5% in building and 20% in
furniture and fixture & pre-operating expenses on straight -line method.
PROJECT SUMMERY
1 Name of the project: Xxxxxx Ltd.
2 Location of the project: Office: Suite 03 / 3rd
Floor, 3/3B, Purana
Paltan, Dhaka-1000.
Tel: 88-02-7976307, 8801710962792
Email: seekinvestor2007@yahoo.com
Attention to: Md. Hafizul Haque
3 The Project:
The project envisages setting up of a
transport business for inter district luxury bus
services. The project has been designed and
equipped with imported 100 luxury buses from
China. Local machineries and equipments to
be procured locally.
4 Proposal:
Request for issuance Bank Comfort Letter for
issuance Bank Guarantee against foreign
loan of US$ 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
Page 6 of 34
7. TRANSPORT BUSINESS AT BANGLADESH
other related costs. Instead of this JV will
increase more transportation vehicle will
higher profit from the estimated one.
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 M) 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
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
Gazipur, Madangonj and Bogra.
8 Building and other civil works: The proposed cost of building and civil works
has been estimated at US$ 4.559 M.
9 Plant and Machinery:
A. Imported Machinery: The cost of the proposed imported machinery
including the related expenses works out at US$
14.695 M.
B. Local Machinery: The project requires some local machinery. The
proposed cost of which works out at US$ 0.683 M.
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 M.
12 Corporate set up: Private Limited Company / JV / FDI
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. (Political
unrest, may decrease maximum 30 working days)
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
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8. TRANSPORT BUSINESS AT BANGLADESH
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%
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9. TRANSPORT BUSINESS AT BANGLADESH
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 JV Capitalist / personal lender /
Bank/Financial Institutions may be highly
recommended. Joint Venture will get an extraordinary
rate of return against the projected profit/IRR.
INTRODUCTION, PROMOTERS & MANAGEMENT
Introduction
The promoters of Xxxxxx Ltd. is being applied for financial assistance for setting up a Transport
Project at Madanganj, Gazipur and Bogra, Corporate Office: Room 03, 3rd
floor, Soleman plaza,
3/3B Purana Paltan, Dhaka-1000 Tel: 7976307, Fax: XXXXXXXXXXXX. The total cost of the
project' has been estimated at USD. 60 million..
Corporate set up: FDI / JV / Private Limited Company.
Promoters and Management.
SI. No. Name of the Person Position in the Company No. of Shares
1 JV Capitalist Chairman XXXXX
2 Md. Hafizul Haque Managing Director XXXXX
3 XXXXX XXXXXXX Director XXXXX
4 XXXXX XXXXXXX Director XXXXX
5 XXXXX XXXXXXX Director XXXXX
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/s. Experienced and skilled
Page 9 of 34
10. TRANSPORT BUSINESS AT BANGLADESH
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 operated 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/s 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.
Details of the promoters:
A)
Name: XXXXXXXXX
Father's Name : XXXXXXXXXXXX.
Mother's Name : XXXXXXXXXXXXX.
Present Address : XXXXXXXXXXXXree, Dhaka -1217
Permanent Address: XXXXXXXXXXXXXXXXXXXXX
DOB: 23/09/1967
Education: M Sc. In Marine Biology.
B)
Name: XXXXXXXX.
Father's Name : XXXXXXXXXXXXXXX.
Mother's Name : XXXXXXXXXXXXXXX
Present Address : XXXXXXXXXXXXXXXXXXXX
Permanent Address: XXXXXXXXXXXXXX
DOB:
Education:
National Id No :
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 Xxxxxx Ltd, Madanganj, Gazipur and Bogra, Corporate Office:
Suite 03/3rd
floor 3/3B Purana Paltan, Dhaka-1000. Tel: 7976307, Fax: XXXXXX 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:
Page 10 of 34
11. TRANSPORT BUSINESS AT BANGLADESH
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 Passanger Daily Service Unit sales Total Value
price in USD.
(a) Dhaka to Chittagong 40 20 7 2,044
(b) Chittagong to Dhaka 40 20 7 2,044
(c) Dhaka to Cox's Bazar 40 6 11 964
(d) Cox's Bazar to Dhaka 40 6 11 964
(e) Dhaka to Sylhet 40 10 9 1,241
(f) Sylhet to Dhaka 40 10 9 1,241
(g) Dhaka to Jessore, Khulana 40 6 9 788
(h) Khulana, Jessore to Dhaka 40 6 9 788
(i) Dhaka to Rajshahi 40 6 9 788
(j) Rajshahi to Dhaka 40 6 9 788
(k) Dhaka to Rangpur, Dinajpur 40 20 9 2,628
(l)Dinajpur,Rangpur to Dhaka 40 20 9 2,628
(m) Dhaka to Bogra, Noagaon 40 6 9 788
(n) Noagaon, Bogra to Dhaka 40 6 9 788
(o) Dhaka to Barishal 40 5 10 730
(p) Barishal to Dhaka 40 5 10 730
19,944
Note: Transport will be double+, if this project will be Joint Venture……
Land and location
The project will be located at Madanganj, Gazipur 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 and also flood free zone.
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.
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12. TRANSPORT BUSINESS AT BANGLADESH
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 330 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, llift up with the help of a Submersible pump.
Furniture Fixture and office Equipment: The project has office furniture fixture, computer, fax,
telephone etc for which and amount of USD 50 thousand has been estimated.
Safety Provision: Precaution against fire, necessary fire fighting equipment and first aid box has been
required for which an amount of USD 50 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:
General Manager 1
Manager (Admin) 1
Admin Officer 2
Accounts officer 2
Commercial Officer/Asstt. Com. Of 6
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China CNG Bus
13. TRANSPORT BUSINESS AT BANGLADESH
Stores Officer 2
Medical Officer 2
Medical Asstt. 6
Security Officer 1
Labour Officer 1
Asstt. Accountant 2
Wage Clerks 2
Compter/telex/fax operator 2
Time Keeper 2
Clerk-cum-Typist 3
Compounder 2
Driver 6
Bus Supervisor 100
Security Guard 4
Peon 4
Sweeper 2
Marketing
Ticket Sales Man 100
Ticket sales Asstt. 100
B) Technical personnel:
Workshop Manager 3
Supervisors 6
Automobile Engineer 3
Automobile Mechanic 6
Welder 3
Driver 100
Helper 100
Skilled labour 12
Semi-skilled labour 6
Labour 6
Generator operator 2
CNG Station Manager 6
CNG Mechanic operator 12
Electrical Mechanic 3
Security Officer 3
Security Guard 12
Store Officer 2
Asstt Store Officer 3
Computer Operator 2
Computer Operator Asstt 3
Office Asstt. 3
Sweeper 8
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.
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14. TRANSPORT BUSINESS AT BANGLADESH
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 increased significantly in 2008
to $1086m. As of June 2009, inflows of foreign direct investment recorded to $358m.
Inflows of foreign direct investment during 2001-2009*
As of June, 2009
Source: Bangladesh Economic Review-2010 (Bangla version), Ministry of Finance
Private investment statistics:
Year
Proposed local
investment
Proposed foreign
investment
Total proposed
investment Growth %
Project US$ m Project US$ m Project US$ m
2005-
2006
1,754 2,662.31 135 3,621.15 1,889 6,283.46 125%
2006-
2007
1,930 2,848.98 191 1,728.26 2,121 4,577.24 (-27%)
2007-
2008
1,615 2,833.76 143 787.39 1,758 3,621.15 (-21%)
2008-
2009
1,336 2,480.72 132 2,137.53 1,468 4,618.25 27%
2009-
2010
876 1,831.44 92 617.68 968 2,449.12 -
* February, 2010
Source: Bangladesh Economic Review-2010 (Bangla version), Ministry of Finance
13.1 TRANSPORT AND COMMUNICATION BY TYPE .
Classification
Units
2002-03 2003-04 2004-05
Airway (Nos) 17 17 14
DC-10 (Nos) 12 12 10
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15. TRANSPORT BUSINESS AT BANGLADESH
Fokker/ATP (Nos) 5 5 4
Passengers Carried (Nos) '000' 1529000 1647000 1639000
Goods Carried '000' MT 39000 38000 40000
Revenue (Tk in Crore) -
Income 1901.53(P) 2179.59(E) -
Expenditure 1954.71(p) 2162.02(E) -
Railway -
Railway Track Operated (Km) - 2880.07 -
Goods Traffic Ton Km (Million) 951.99 922.3 -
Passengers (Million) Traffic Km 4024.21 4392 -
Rail Engine (Nos) 275 275 -
Freight Wagons (Nos) 10605 10605 -
Passengers Coaches 1273 1273 -
Other Coaches 137 137 -
Unorganized Road Transports (000)
Rickshaw 1820 1919 1980
Push Cart 21 22 23
Bullock Cart 56 55 54
Organized Road Transports (000) -
Bus/Minibus 32 33 34
Microbus 16 17 19
Truck 51 53 55
Motor Car/Taxi/Jeep 84 90 94
Auto Rickshaw 85 94 100
Tractors/Tailor/Others 18 21
Organized Water Transports (000)
Vessel owned by BSC (Nos) 13 13 13
Vessel owned by BIWTC (Nos) 208 194 194
Unorganized Water Transports (Nos)
Country Boat for Motorize 67 68 69
Country Boat for Cargo 68 65 66
Country Boat for Passenger 118 110 111
Communication Facilities 3783 3914 3937
Post Office (Nos) 9859 10007 9886
Telegraph Office (Nos) 657 - -
Telephone Sets '000' (Nos) 707 967 1010
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16. TRANSPORT BUSINESS AT BANGLADESH
Source : Economic Revue 2004, BBS and statistical Pocketbook 2005
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
Denmaek 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
Page 16 of 34
17. TRANSPORT BUSINESS AT BANGLADESH
COST OF THE PROJECT
SL.
No.
Item
Existing
Wealth
Proposed
Investment
Total
2 Building & civil Works 4,559 4,559
3 Imported Machinery
Duty (38%)
Marine Insurance (1%)
Clearing & Forwarding (1%)
L/C Commission (1%)
Pre-shipment inspection charge (0.5%)
14,670
5,584
147
147
147
73
14,670
5,584
147
147
147
73
4 Local Machinery 683 683
5 Cost of Installation 50 50
6 Vehicles 93 93
7 Office equipment, furniture & Fixtures 50 50
8 Salary equipments 10 10
9 Contingencies
On Machinery`s (5%) 735 735
10 Per-operating and start up expenses 3,000 3,000
11 Working capital 52 52
Fixed cost - 30,000 30,000
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18. TRANSPORT BUSINESS AT BANGLADESH
Means of Finance:
Foreign Fund 30,000
COST OF BUILDING & OTHER CIVIL WORKS FOR XXXXXX LTD.:
(Existing)
Sl No. Items Specification Covered Rate of Estimated cost
area sq.m. const. (BDT) (BDT 000)
11 Surface Drain Surface drain
12 Internal road Road Size: 167368mx 7.62m
Page 18 of 34
1 Main workshop
At Gazipur
5m ht. R.C.C frame structure factory
building godowns, generators building
with to storied foundation (without
under ground duct)
2 Workshop
Madangonj
At 6m ht R.C.C. frame godowns
building (ground floor) size:
25.91m ×27.43m
3 Workshop at
Bogra
A/C plant room over the factory
building. As per machine suppliers
drawing.
4 Duct
humidification
For Under ground duct with R.C.C
wall with net Cement finishing (water
tight) Size: 1m× 1.5m
5 Residential
Building
6(six) Storied R.C.C. frame structure
residential building size:
6×8.8m×34.4m = 1829.30,
6×2.18m×34.45mc = 1070.70
6 Administrative
Building
3 (Three storied R.C.C. frame
structure administrative
building/security & labour office
7 Workshop &
Quarter
4 storied R.C.C. frame workshop
building and quarter, (Ground Floor to
3rd
Floor) size: 4 x 10.97m x 5.46m
8 Scrap Yard Scarp yard Size : 1×8.84m× 12.19m
9 Raw Material Store R.M.S. Size: 1/2× 1.076m ×
8.53m×1
/2
10 Boundary wall Boundary wall with R.C.C. column @
8`c/c with 5″ thick wall plaster Both
side & snowcem (ht-8′-0″)
19. TRANSPORT BUSINESS AT BANGLADESH
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
USD in “000”
Sl No. Item Quantity Unit Price Total Price
1 Way bill
2 Ticket printing
3 Different size leather machine & ancillary equip.
4 Ticket counter and office
5 Generator
6 Transformer
7 Electric control panel
683
Per- Operating Expenses
USD in “000”
Sl No Item Total Price
1 Service Charge & 1st
year interest, Total 2% on USD 60 million 1200
1200
IMPORTED MACHINERY (Proposed)
USD in “000”
Sl No. Particulars Quantity Unit Price Total Price
1
2
3
CNG Luxury Bus, China
YUTONG HONGKONG LIMITED
CNG Station Complete
Petrol pump
100
6
6
122200
300000
75000
12220
1800
675
14,695
LIST OF VECHICLES
USD in “000”
Items Quantity Unit Price Total Price (USD)
i) Hino Ranger Covered Van Capacity
7000KG
1 36
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20. TRANSPORT BUSINESS AT BANGLADESH
iv) Toyota Liteage
Total
2 57
US$ “000” 93
Page 20 of 34
21. TRANSPORT BUSINESS AT BANGLADESH
WORKING CAPITAL REQUIREMENT
USD in ‘000’
A) Current Assets:
Stores & Spares
Fuel & Lubricant
Wages
Totalcurrent assets
Tied up period
15 Days
15 Days
15 Days
Yr-1
3
20
29
52
Yr-2
6
22
30
58
Yr-3
10
23
32
64
Yr-4
13
24
33
70
Yr-5
16
26
35
77
B) Current Liabilities:
Working capital (100%) loan 52 58 64 70 77
Net working capital requirement
(%) Sponsors Equity - - - - -
Net Working Capital 52 58 64 70 77
EARNING FORECAST
USD in ‘000’
Sales revenue
Cost of goof sold
Gross Profit
Admin & selling exp
Net Operating Profit
Financial expense
Net profit before Tax
Yr-1
13,961
5,838
8,123
818
7,305
360
6,645
Yr-2
15,955
6,205
9,750
874
8,876
1,860
7,016
Yr-3
17,949
6573
11,376
929
10,446
1,860
8,586
Yr-4
17,949
6,824
11,126
988
10,137
1,860
8,277
Yr-5
17,949
7,052
10,897
1,020
9,878
1,860
8,018
Tax 40%
Net profit after tax
2778
4,167
2806
4,210
3435
5,152
3311
4,966
3207
4,811
Reserve fund for currency
Fluctuation (2%)
Profit after reserve fund
Return on fixed deposit of currency
Fluctuation amount (9%)
Profit after return on fixed deposit
Share Holder Dividend (10%)
Retained earning
Ratios:
Gross profit to sales
Operation profit to sales
Net Profit to sales
600
3,567
-
3567
812
2755
58
52
20
557
3,652
54
3706
975
2731
61
56
17
514
4,638
50
4688
1138
3550
63
58
20
471
4,495
46
4541
1113
3429
62
56
19
429
4,382
42
4425
1090
3335
61
55
19
Page 21 of 34
23. TRANSPORT BUSINESS AT BANGLADESH
Tax 40%
Net profit after tax
2,219
3,329
2,168
3,252
2,717
4,075
2,593
3,889
2,489
3,734
Reserve fund for currency
Fluctuation (2%)
Profit after reserve fund
Return on fixed deposit of currency
Fluctuation amount
(9%)
Profit after return on fixed
deposit
Dividend (10%)
Retained earning
Retained earning :
600
2,729
-
2729
673
2057
557
2,695
54
2749
815
1734
514
3,561
50
3611
958
2653
471
3,418
46
3464
933
2531
429
3,305
42
3,348
910
2437
SENSITIVITY ANALYSIS-II
(On the basis of 10% increase in production cost)
USD in ‘000’
Sales revenue
Cost of goof sold
Gross Profit
Admin & selling exp
Net Operating Profit
Financial expense
Net profit before Tax
Yr-1
13,961
5,838
8,123
818
7,305
360
6,945
Yr-2
15,955
6,205
9,750
874
8,876
1,860
7,016
Yr-3
17,949
6,573
11,376
929
10,446
1,860
8,586
Yr-4
17,949
6,824
11,126
988
10, 137
1,860
8,277
Yr-5
17,949
7,052
10,897
1,020
9,878
1,860
8,018
Tax 40%
Net profit after tax
2,778
4,167
2,806
4,210
3,435
5,152
3,311
4,966
3,207
4,811
Reserve fund for currency
Fluctuation (2%)
Profit after reserve fund
Return on fixed deposit of currency
Fluctuation amount
(9%)
Profit after return on fixed
600
3,657
-
3567
557
3,652
54
3706
514
4,638
50
4688
471
4,495
46
4541
429
4,382
42
4,425
Page 23 of 34
24. TRANSPORT BUSINESS AT BANGLADESH
deposit
Dividend (10%)
Retained earning
Retained earning :
812
2755
975
2731
1138
3550
1113
3429
1090
3335
SENSITIVITY ANALYSIS-III
(On the basis of 10% increase in production cost And 5% decrease in the sales price)
USD in ‘000’
Sales revenue
Cost of goof sold
Gross Profit
Admin & selling exp
Net Operating Profit
Financial expense
Net profit before Tax
Yr-1
13,262
6,130
7,133
818
6,315
360
5,955
Yr-2
1,157
6,515
8,642
874
7,768
1,860
5,908
Yr-3
17,052
6,902
10,150
929
9,220
1,860
7,360
Yr-4
17,052
7,165
9,887
988
8,899
1,860
7,039
Yr-5
17,052
7,404
9,647
1,020
8,628
1,860
6,768
Tax 40%
Net profit after tax
2,382
3,573
2,363
3,545
2,944
4,416
2,815
4,223
2,707
4,061
Reserve fund for currency
Fluctuation (2%)
Profit after reserve fund
Return on fixed deposit of currency
Fluctuation amount
(9%)
Profit after return on fixed
deposit
Dividend (10%)
Retained earning
Retained earning :
600
2,973
-
2,973
713
2260
557
2,988
54
3042
864
2177
514
3,902
50
3,952
1015
2937
471
3,752
46
3,798
989
2809
429
3,632
42
3,675
965
2710
Page 24 of 34
25. TRANSPORT BUSINESS AT BANGLADESH
OPERATING EXPENSES
USD in ‘000’
Raw materials at rated capacity
Capacity utilization `s
Raw materials at capacity
Wages & Salaries
Storages & Spares
Repairs and maintenance
Rent, Tax & Insurance
Power, Fuel & Lubricant
Depreciation
Misc. Overhead expenses
Cost of goods sold
Yr-1
1,202
70%
841
689
77
23
300
438
3,329
96
5,838
Yr-2
1,202
80%
962
724
154
100
300
517
3,329
120
6,205
Yr-3
1,202
90%
1,082
760
231
177
300
551
3,329
144
6,573
Yr-4
1,202
90%
1,082
798
308
253
300
586
3,329
168
6,824
Yr-5
1,202
90%
1,082
838
384
330
300
620
3,329
168
7,052
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
Workshop Manager
Supervisors
Auto Mobile Engineer
Auto Mobile Machanic
Welder
Driver
Helper
Skilled labour
Semi-skilled labour
Labour
Generator operator
CNG Station Manager
CNG Machine operator
Electrical Machanic
3 1000 36
6 500 36
3 700 25
6 300 22
3 200 7
100 200 240
100 100 120
12 100 14
6 80 6
6 70 5
2 100 2
6 150 11
12 100 14
3 150 5
Page 25 of 34
26. TRANSPORT BUSINESS AT BANGLADESH
Security officer
Security Guard
Store officer
Asstt Store officer
Computer operator
Computer operator Asstt.
Office Asstt.
Sweeper
3 150 5
12 120 17
2 150 4
3 100 4
2 100 2
3 100 4
3 80 3
8 80 8
304 591
Benefits:
Basic
Increment (5%)
Bonus (2 months pay) Total
Yr-1
591
-
591
98
689
Yr-2
591
30
620
103
724
Yr-3
620
31
651
109
760
Yr-4
651
33
684
114
798
Yr-5
684
34
718
120
838
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:
Capacity
Water
Power
Fuel & Lubricant
Total
Yr-1
70%
-
96
387
Yr-2
75%
-
102
415
Yr-3
80%
-
109
442
Yr-4
85%
-
116
470
Yr-5
90%
-
123
497
Page 26 of 34
28. TRANSPORT BUSINESS AT BANGLADESH
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
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.
Page 28 of 34
29. TRANSPORT BUSINESS AT BANGLADESH
FINANCIAL EXPENSES
USD in ‘000’
Financial Expenses
Local BG Fee 1.20%
Interest 2%
Total
Yr-1
360
-
360
Yr-2
360
1200
1560
Yr-3
360
1200
1560
Yr-4
360
1200
1560
Yr-5
360
1200
1560
Assumptions:
Though the principal Amount is US$ 60,000,000, so the principal amount will be
return back, after completion of 11 (including 1 year grace period) years (at a
time as US$60,000,000 + last installment of interest as 1,200,000=61,200,000US$)
Service charge & 0%Interest = @ 2% on USD 60 million = US$1200000 X 9 installment
(started from the 1st
day of the first month of the third year) = US$10,800,000
BREAK EVEN ANALYSIS
1. Revenue excluding other income (10th year): 35,898
2. Total cost of operation, Admin. 9,728 for the first five year X 2 = 19,456
Selling, Financial expenses
Analysis of total cost Total cost Fixed cost Variable cost
Raw Materials
Wages & Salaries
Power, Fuel & Lubricant
Stores & Spares
Repair & Maintenance
Depreciation & Write off
Rent, Tax & Insurance
Salaries (admin.)
Postage, Telephone & Telegram
Printing & Stationery
Traveling & Conveyance
Misc. overhead
Audit Fee
Finanancial exp.
1,202
838
620
384
330
3,329
300
658
10
10
10
168
1
360
-
168
62
77
66
3,329
300
658
3
3
3
168
1
360
1,202
670
558
308
264
-
-
-
8
8
8
-
-
-
8,221 5,196 3,025
I) PA/ Ratio S-V 17949-3038 14,924
0.83S 17,949 17,949
Page 29 of 34
30. TRANSPORT BUSINESS AT BANGLADESH
II) Breakeven sales F 5,196
6,249
P/V Ratio 0.83
Note: This estimation is based only for the five
years. So, it needs to multiply with 2 unit.
Borrower has right to return Lenders amount,
within 5th
year and or the end of the 10th
year.
Break even sales is 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 capital
Operating profit
Increase in current liabilities
Deprecation & write off
Loan from Foreign Lender
Total
-
-
-
60,000
60,000
7305
52
3329
-
10,686
-
8876
6
3329
-
12,211
-
10446
6
3329
-
13,782
-
10137
6
3329
-
13,473
-
9878
6
3329
-
13,213
B. Utilization of fund
Fixed capital expense
Increase in current assets
Repayment of principal amount
Tax
Dividend
Currency fluctuation factor
Payment of interest
Total
60000
-
-
-
-
60,000
-
52
0
2,778
812
600
360
4,602
-
6
0
2,806
975
557
1,860
6,304
-
6
0
3,435
1,138
514
1,860
6,953
-
6
0
3,311
1,113
471
1,860
6,761
-
6
0
3,207
1,090
429
1,860
6,592
Cash Surplus (A-B)
Opening balance of cash
Closing balance of cash
-
-
-
3,941
-
3,941
3864
3,941
7,805
4,686
7,805
12,491
4,569
12,491
17,060
4,479
17,060
21,538
DEBT SERVICE COVERAGE RATIO
USD in ‘000’
Income Yr-1 Yr-2 Yr-3 Yr-4 Yr-5
Profit after dividend
Depreciation and write off
Interest on term loan
Total
2,755
3,329
360
6,444
2,731
3,329
1,860
7,921
3,550
3,329
1,860
8,739
3,429
3,329
1,860
8,618
3,335
3,329
1,860
8,524
Page 30 of 34
31. TRANSPORT BUSINESS AT BANGLADESH
Liabilities
Installment of term loan
Debt service coverage ratio (Time)
2,143
2,143
3.01
2,143
2,143
3.70
2,143
2,143
4.08
2,143
2,143
4.02
2,143
2,143
3.98
PAY BACK PERIOD
1. Amount to be paid back (project Cost) US$ 72,000,000
2. Amount to be available for interest for the lender from the income:- USD in ‘000’
Item Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6
Net Interest
P. amount
- 1200 1200 1200 1200 1200
- - - - - -
Total 1200 1200 1200 1200 1200
Item Yr 7 Yr 8 Yr 93 Yr 10 Grand total
Net Interest
P. amount
1200 1200 1200 1200 12,000
- - - 60,000 60,000
Total 1200 1200 1200 61,200 72,000
Pay Back Period = end of the 10th
year.
FINANCIAL INTERNAL RATE OF RETURN
Year Cost Benefit Net cash flow NPV discounting
35%
NPV discounting
40%
0
1
2
3
3
5-9 year
10 Salvage Value
30,000
52
6
6
6
6
6
-
10,634
12,205
13,776
13,466
13,207
1,302
(30,000)
10,582
12,199
13,769
13,460
13,301
1,302
(30,000)
7,841
6,697
5,590
4,052
6,640
65
(30,000)
7,555
6,222
5,012
3,500
5,241
46
885 (2,425)
Though the principal Amount is US$ 60,000,000, so the principal amount
will be return back, after completion of 10 years (at a time as
US$60,000,000 + last installment of interest as
1,200,000=61,200,000US$)
Page 31 of 34
32. TRANSPORT BUSINESS AT BANGLADESH
Service charge & Interest @ 2% on USD 60 million = US$1200000 X 9 installment
(started from the 1st
day of the second year) = US$10,800,000
Gross amount to be paid to the Lender will be: US$ (61,200,000 + 10,800.000)
= US$ 72,000,000
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
1
2
3
4
5
7305
8876
10446
10137
9878
3329
3329
3329
3329
3329
10,634
12,205
13,776
13,466
13,207
Salvage value
Land
Building
Machinery
Inventory Cost
100%
10%
5%
100%
-
456
769
77
1,302
Inventory Calculation Yr 1 Yr 2 Yr 3 Yr 4 Yr 5
Wages
FL
S & S
29
20
3
52
30
22
6
58
32
23
10
64
33
24
13
70
35
26
16
77
Incremental Inventory 6 6 6 6 6
1. Contribution to GDP:
The project will contribute an amount of US$ 14.913 M 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:
Page 32 of 34
33. TRANSPORT BUSINESS AT BANGLADESH
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
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 assets
Cash & Bank balance
Other current assets
Total current assets
- 3,941
52
3,993
7,805
58
7,863
12,491
64
12,555
17,060
70
17,130
21,538
77
21,615
Fixed assets
Fixed assets Net
Return on Fixed Deposit
Total Fixed assets
Total assets
30,000
30,000
30,000
60,000
26,671
3,000
29,671
59,671
23,342
3,000
26,342
56,342
20,013
3,000
23,013
53,013
16,684
3,000
19,684
59,684
13,354
3,000
16,354
46,354
LIABILITIES & OWNERS EQUITY
Liabilities
Term loan
Short term loan
Total liabilities
60,000
0
60,000
60,000
0
60,000
60,000
0
60,000
60,000
0
60,000
60,000
0
60,000
60,000
0
60,000
Page 33 of 34
34. TRANSPORT BUSINESS AT BANGLADESH
Equity
Paid up capital
Retained earnings
Total equity
Total liabilities & equity
-
-
-
60,000
-
2,755
2,755
60,664
-
5,486
5,486
61,259
-
9,036
9,036
62,672
-
12,465
12,465
63,964
-
15,800
15,800
65,162
Page 34 of 34
