Upload
mahbub-e-al-munim
View
219
Download
0
Embed Size (px)
Citation preview
7/30/2019 Delta System Limited
1/81
APPLICATION FOR FINANCIAL ASSISTANCEFROM
EQUITY AND ENTREPRENEURSHIP FUND (EEF)
BANGLADESH BANK
DELTA SYSTEMS LIMITED
CORPORATE OFFICE :
8 Panthapath, Level-14
Unique Trade Center (UTC)
Tejgaon, Dhaka.
7/30/2019 Delta System Limited
2/81
GENERAL CONTENTS
PART I : APPLICATION FOR FINANCIAL
ASSISTANCE FROM THE EEF UNIT,
BANGLADESH BANK
PART II : FEASIBILITY REPORT ON DELTASYSTEMS LIMITED
PART III : MEMORANDUM & ARTICLES OF
ASSOCIATION OF DELTA SYSTEMS
LIMITED
7/30/2019 Delta System Limited
3/81
PART I
APPLICATION FOR FINANCIAL ASSISTANCEFROM
THE EQUITY & ENTREPRENEURSHIP FUND (EEF)BANGLADESH BANK
7/30/2019 Delta System Limited
4/81
Bank/DFI/EEF Unit
Application Form For Financial Assistance For a New Project
1.0 Proposed Project :
1.1 Name of the Project : Delta Systems Limited
1.2 Address :
a. Corporate Office : 8 Panthapath, Level-14
Unique Trade Center (UTC)
Tejgaon, Dhaka.
b. Project Office : 153/1, Green Road.
Dhaka-1205.
2.0 Promoters :
2.1 Particulars of the Promoters :
Name Address Status
Engr. Bellal HossainShikder
House # 8, Road # 12Dhanmondi, Dhaka.
ManagingDirector
Engr. Faizul Hoque
Shikder
7D, House # 5/Kha, Shatmosjid
Road, Mohammadpur, Dhaka.Director
7/30/2019 Delta System Limited
5/81
2.2 Bio-data of the Promoters
(Sponsors/Directors)
: Furnished as per
Form1 (enclosed)
2.3 Personal Networth Statement
of the Promoters
: Furnished as per
Form2 (enclosed)
2.4 Declaration of particulars of
sister/allied concern (s)
: Furnished as per
Form3 (enclosed)
2.5 Specimen of the letters addressed
to the bankers of the Promoters
: Enclosed.
3.0 TESTS OF PROJECTS VIABILITY:
In appraising the project, the viability tests have been made, as
follows, on the basis of the factors and/or aspects prescribed inForm5:
3.1 Appraisal of the Sponsors/Entrepreneurs :
The overall management and operation of the project will be under
the joint supervision and guidance of the promoters as mentionedearlier. A brief description of background and experience of all the
sponsors is furnished hereunder :
7/30/2019 Delta System Limited
6/81
Engr. Bellal Hossain Shikder :
The Managing Director of the Company Engr. Bellal Hossain Shikder,
aged 39, is a B. Sc. in Civil Engineering from BUET and also an MBA
form the University of Dhaka.
He is a well experienced in Information Technology (both hardware &
software). He has been running business in this sector for more than
one year and has already achieved remarkable success. His success
in the relevant sector made him confident enough to take up a
venture in larger shape.
Engr. Bellal Hossain is a social worker and he is engaged in various
socio-cultural activities.
Engr. Faizul Hoque Shikder :
Engr. Faizul Hoque Shikder, aged 27 is a B. Sc. in Agricultural
Engineering and an M. Sc. in Food Technology. He is a Director of the
Company. He is an experienced businessman in IT sector, who has
been doing this business for more than one year.
Engr. Faizul Hoque is a young, dynamic person who is devoted to
business in IT sectors. He is very much enthusiastic and confident
about success in IT related businesses.
Engr. Faizul Hoque is a good organizer and social worker. He is a
popular person in his community and spends time to do social well
being.
7/30/2019 Delta System Limited
7/81
3.2 Technical, Technological and Environment Tests :
The project has been designed mainly for developing computer
software and selling the same at both local and foreign
markets/buyers. The software have been getting an increasing
demand day by day, but the supply situation (production of software)
has not been at a level in relation to demand. For this reason, there
prevails a demand-supply gap (i.e. supply deficiency) in this sector,
especially in the western countries.
The main and the most valuable component of the software industry
is the IT professionals. Fortunately, Bangladesh is enriched with this
type of professionals who possess the highest brilliance and excellent
ideas/innovations. But this is yet to be focused in the international
arena. And if this can be highlighted before the world, it could be a
great source of foreign currency for the country.
The project is environment friendly. So, it will put no adverse effect
on the environment. Rather, it is likely to create employment for a
good number of educated people and thus will play a satisfactory
socio-economic role.
The project is of utmost priority set by the present Government with
a view to developing the software sector, which will ultimately
contribute significantly in the economic development of the country.
7/30/2019 Delta System Limited
8/81
3.3 Financial Feasibility:
The project is financially feasible. This is indicated by the following
evaluating factors:
Breakeven point : 60% of
assumed capacity.
Internal Rate of Return (IRR) :
25 %
Payback period : 5 years
and 3 months.
Margin of safety : 40%
3.4 Projects Return :
The after-tax return of the project are shown as follows:
Return on sponsors
Paid-up capital : 10% (4th year)
Return on total
Capital outlay : 5% (4th year)
Return on assets : 6% (4th
year)
So the projects return can be considered to be satisfactory.
3.5 Ratio Analysis:
All financial ratios of the project show a comparatively better picture,
as follows, than the minimum standards set by the EEF Unit of
Bangladesh Bank :
FactorsProjects Ratios
Year-1 Year-2 Year-3 Year-4 Year-5
Gross profitto sales (%)
51 40 39 38 38
7/30/2019 Delta System Limited
9/81
Operating profitto sales (%)
18 10 10 12 14
Net Profitto sales (%)
13 07 08 09 10
Debt-service CoverageRatio (times) 2.95 2.57 2.65 2.81 2.99
Fixed Assets CoverageRatio (times)
1.83 1.81 1.77 1.72 1.64
3.6 SWOT Analysis:
Strengths:
The project location is an excellent one and it enjoys a good
communication network with all infrastructure facilities being
available.
All the promoters are financially sound and have the affordability
of equity participation against their respective shareholdings in
the company.
The promoters of the project are all highly educated with bright
academic records. So the project is enriched with the persons
who are quite sound and capable in business management and
operational aspects.
Weakness:
The software industry in Bangladesh is still at its infant stage.
People do not come forward to develop this sector mainly due
to financial incapability and some sort of confusion about its
prospect.
7/30/2019 Delta System Limited
10/81
For competing in the international market, volume and quality
should be significantly high to achieve the acceptability.
Opportunities:
There is a vast market demand of the software, especially in
the western countries of the world, which is getting an
increasing shape day by day. So the software developingprojects of the country have a lot to exploit it.
Talented professionals required to run this type of venture can
be obtained locally. This will enable the project to have a cost-
benefit advantage.
The software project will be socially and economically wellaccepted and environment friendly having no adverse effect on
the surrounding areas.
Threats:
The resourceful brilliant professionals may leave the country forbetter prospect and living standard in absence of their desired
placement.
The software project may face struggle to survive in absence of
vigorous marketing efforts.
7/30/2019 Delta System Limited
11/81
Political unrest may cause some problem in case of the
projects desired progression.
7/30/2019 Delta System Limited
12/81
4.0 CORPORATE SET-UP/CONSTITUTION:
4.1 Corporate Set-up : Private Limited Company4.2 Date of incorporation : 27.01.01
4.3 Certificate of incorporation : Copy enclosed, duly certified by theManaging Director of the company.
4.4 Memorandum & Articles ofAssociation of the Company
: Copy enclosed, duly certified by theManaging Director of the Company.
4.5 TIN of Directors of theCompany and sister concerns
: Copy of certificates enclosed.
5.0 PARTICULARS OF THE PROJECT:
Feasibility Report on the project containing the particulars prescribed
in the Application Form of the EEF Unit of Bangladesh Bank has beenprepared and enclosed hereto.
We do hereby solemnly declare and affirm that the statement andinformation furnished in this Application and the Forms and the
Feasibility Report enclosed herewith are correct and true, and nothinghas been concealed therefrom, and if at any time it transpires that
we have suppressed any fact and/or supplied wrong information, weshall be held liable therefor. We agree to furnish you any further
information as may be required by the Bank/DFI.
Name and Designation Signature
1. Engr. Bellal Hossain Shikder ___________________
Managing Director
2. Engr. Faizul Haque Shikder ___________________
Director
Date :____________
7/30/2019 Delta System Limited
13/81
Form-1(a)
Name of company:
BIO-DATA OF THE SPONSORS/DIRECTORS
01. Name : Engr. Bellal Hossain Shikder
02. Fathers Name : Late Shyad Ali Shikder
03. Mothers Name : Nurzahan Begum
04. Nationality : Bangladeshi
05. Age/Date of birth : 01.03.1964
06. Address :
a) Present : House # 8, Road # 12
Dhanmondi, Dhaka.
b) Permanent : House # 8, Road # 12
Dhanmondi, Dhaka.
07. Home district : Bagerhat.
08. Educational Qualification : B. Sc. in Civil Engineering from BUET.
MBA from the University of Dhaka.
PHOTO
7/30/2019 Delta System Limited
14/81
Form-1(b)
09. Technical or any other qualifications :
(a) Information Technology enabled knowledge in both hardware and
software.(b) Teaching.10. Industrial/Business/Other experience :
Name ofCompany
Nature ofBusiness
Location/Address
MainProducts
Position/Jobs
Durationwith date
Delta SystemsLtd.
InformationTechnology
House # 83/A,Road # 11A,Dhanmondi, Dhaka
Brand PCi-friend &software
ManagingDirector
Since27.01.01
Delta School ofMathematics
PrivateEducation
House # 83/A,Road # 11A,Dhanmondi, Dhaka
Education Chairman 16 years
11. Whether associated with any projects financed by Bank/DFI : N/A.
12. Any other information :
(a) Earned wide reputation in teaching profession.
(b) Engaged in various other social & religious activities.
D E C L A R A T I O N
I do hereby declare that-
i) I am a bonafide national of Bangladesh;
ii) I am not a minor;iii) neither I am nor my spouse is serving with any Government/Semi-
Government/Autonomous Body; and
iv) the particulars furnished above are true and correct.
(Engr. Bellal Hossain Shikder)
Date :______________ Signature of the Sponsor/Director
7/30/2019 Delta System Limited
15/81
Form-1(a)
Name of company :Delta Systems Limited
BIO-DATA OF THE SPONSORS/DIRECTORS
01. Name : Engr. Faizul Hoque Shikder
02. Fathers Name : Late Shyad Ali Shikder
03. Mothers Name : Nurzahan Begum
04. Nationality : Bangladeshi
05. Age/Date of birth : 01.01.1976
06. Address :
a) Present : 7D, House # 5/Kha, Satmasjid Road
Mohammadpur, Dhaka.
b) Permanent : Vill + PO: Barabaria
Chitalmari, Bagerhat.
07. Home district : Bagerhat.
08. Educational Qualification : B. Sc. in Agricultural Engineering.
M. Sc. in Food Technology.
PHOTO
7/30/2019 Delta System Limited
16/81
Form-1(b)
09. Technical or any other qualifications :
(a) Diploma in Information Technology from Bhuiyan Academy, Dhaka.
(b) Information Technology enabled knowledge in both hardware andsoftware.
10. Industrial/Business/Other experience :
Name ofCompany
Nature ofBusiness
Location/Address
MainProducts
Position/Jobs
Durationwith date
Delta SystemsLtd.
InformationTechnology
House # 83/A,Road # 11A,
Dhanmondi, Dhaka
Brand PCi-friend &
software
Director Since27.01.01
Delta School ofMathematics
PrivateEducation
House # 83/A,Road # 11A,Dhanmondi, Dhaka
Education Partner 2 years
11. Whether associated with any projects financed by Bank/DFI : N/A.
12. Any other information :
a) A good social organizer.
b) Earned reputation in teaching profession.
c) Engaged in various other social and religious activities.
D E C L A R A T I O N
I do hereby declare that-
i) I am a bonafide national of Bangladesh;
ii) I am not a minor;
iii) neither I am nor my spouse is serving with any Government/Semi-
Government/Autonomous Body; and
iv) the particulars furnished above are true and correct.
(Engr. Faizul Hoque Shikder)
Date :______________ Signature of the Sponsor/Director
7/30/2019 Delta System Limited
17/81
Form-2(a)
PERSONAL NETWORTH STATEMENT
Name : Engr. Bellal HossainShikder S/O : Late Shyad Ali Shikder
Address : House # 8, Road # 12Flat # B-5
Dhanmondi, Dhaka.
Age :
Profession :
Position :
Marital Status :
Children :
39 years
Business
Managing Director
Married
Male 01 Female --
For the purpose of obtaining financial assistance from time to time in any form
whatsoever from the Bank/DFI/EEF, the undersigned submits the following as
being a true and accurate statement of his financial condition on the date
mentioned herein and also agree that if any change occurs, the undersigned will
immediately notify the same to the Bank/DFI/EEF :
NETWORTH STATEMENT AS ON 10.04.2003
ASSETS Amount (Tk) LIABILITIES : Amount(Tk)
CASH :
a) In hand
b) With other Banks
INVESTMENT :
Government securities,
Shares, Debenture, Bonds,etc. (Private Investment)
Debtors
Real estate (encumbered)
(Schedule-B)
Real estate (unencumbered)
(Schedule-C)
Cash surrender value forLife Policy
Others
7,56,000
12,00,000
15,00,000
20,00,000
-
1,20,00,000
2,50,000
75,00,000
Loan from Banks/Financial
Institutions
(Schedule-A) :
SecuredUnsecured
Other Creditors
Unpaid Taxes
Other liabilities
5,00,000-
-
-
-
Total : 2,52,06,000 Total : 5,00,000
Net Worth (Total Assets Total Liabilities) :Tk. 2,47,06,000
7/30/2019 Delta System Limited
18/81
Form-2(b)
Name of company :
SCHEDULEA : LIABILITIES TO BANKS/FINANCIAL INSTITUTIONS :
Name & address ofthe Bank/Financial
Institution
Date of availing ofthe loan
Limit with validity Present outstanding Secured with natureof security
Pubali BankSatmosjid Road,Dhaka
Dec-2001 Tk 8,00,000 Tk 5,00,00040% of SavingsCertificates held
SCHEDULEB : REAL ESTATES (ENCUMBERED) : N/A
Location and
tenure of
ownership
Area of land Description and
Schedule of the Property
and type of building
Mortgage and
mortgage amount
Market Price
Land Building Total
SCHEDULEC REAL ESTATES (UNENCUMBERED) :
Location and tenure of
ownership
Area
of land
Description and Schedule of the
Property and type of building
Market Price (Tk in 000)
Land Building TotalHouse # 8, Road # 12
Flat # B-5,Dhanmondi, Dhaka.
1400sft Apartment Building. - 3000 3000
8 Panthapath, Level-14Green Road, Dhaka.
2844sft Commercial Building - 8000 8000
9C, Concord CentreFramgate, Dhaka
550 sft Commercial Building - 1000 1000
Total : - - 12000 12000
7/30/2019 Delta System Limited
19/81
Form2(c)
DECLARATION
(a) I do hereby declare that I do not have liabilities to any Banks/DFIs in
my name or in the name of any company/concern in which I hold
interests;
(b) I do hereby declare that the above named assets are owned by me; and
(c) I do hereby declare that my Income Tax (Payers) Identification Number
(TIN) is/are ________________________ and Income Tax liabilities is/are
cleared up to the assessment year ____________________ (photo copies
of tax payment documents is/are enclosed).
The undersigned certifies that the information furnished herein is true and correct.
(Engr. Bellal Hossain Shikder)Date :_____________ Signature of the Sponsor/Director
7/30/2019 Delta System Limited
20/81
Form-2(a)
PERSONAL NETWORTH STATEMENT
Name : Engr. Faizul HoqueShikder S/O : Late Shyad Ali Shikder
Address : 7D, House # 5/KhaSatmasjid Road
Mohammadpur
Dhaka.
Age :
Profession :
Position :
Marital Status :
Children :
27 years
Business
Director
Unmarried
Male -- Female --
For the purpose of obtaining financial assistance from time to time in any form
whatsoever from the Bank/DFI/EEF, the undersigned submits the following as
being a true and accurate statement of his financial condition on the date
mentioned herein and also agree that if any change occurs, the undersigned will
immediately notify the same to the Bank/DFI/EEF :
NETWORTH STATEMENT AS ON 10.04.2003
ASSETS Amount (Tk) LIABILITIES : Amount(Tk)
CASH :
a) In hand
b) With other Banks
INVESTMENT :
Government securities,
Shares, Debenture, Bonds,etc. (Private Investment)
Debtors
Real estate (encumbered)
(Schedule-B)
Real estate (unencumbered)
(Schedule-C)
Cash surrender value forLife Policy
Others
5,00,000
3,00,000
5,00,000
5,00,000
-
-
10,00,000
Loan from Banks/Financial
Institutions
(Schedule-A) :
SecuredUnsecured
Other Creditors
Unpaid Taxes
Other liabilities
--
-
-
-
Total : 28,00,000 Total : -
Net Worth (Total Assets Total Liabilities) :Tk 28,00,000
7/30/2019 Delta System Limited
21/81
Form-2(b)
Name of company : Delta Systems Limited
SCHEDULEA : LIABILITIES TO BANKS/FINANCIAL INSTITUTIONS : N/A
Name & address ofthe Bank/FinancialInstitution
Date of availing ofthe loan
Limit with validity Present outstanding Secured with natureof security
SCHEDULEB : REAL ESTATES (ENCUMBERED) : N/A
Location and
tenure ofownership
Area of land Description and
Schedule of the Propertyand type of building
Mortgage and
mortgage amount
Market Price
Land Building Total
SCHEDULEC REAL ESTATES (UNENCUMBERED) :
Location and tenure ofownership
Area ofland
Description and Schedule of theProperty and type of building
Market Price (000 Tk)
Land Building Total
Total : - -
7/30/2019 Delta System Limited
22/81
Form2(c)
DECLARATION
(a) I do hereby declare that I do not have liabilities to any Banks/DFIs in
my name or in the name of any company/concern in which I hold
interests;
(b) I do hereby declare that the above named assets are owned by me; and
(c) I do hereby declare that my Income Tax (Payers) Identification Number
(TIN) is/are ________________________ and Income Tax liabilities is/are
cleared up to the assessment year ____________________ (photo copies
of tax payment documents is/are enclosed).
The undersigned certifies that the information furnished herein is true and correct.
(Engr. Faizul Hoque Shikder)
Date :_____________ Signature of the Sponsor/Director
7/30/2019 Delta System Limited
23/81
Form-3Name of the Company : Delta System LimitedBank/DFI/EEF
Sub : Declaration of particulars of my sister/allied concern(s).
Dear Sir,
I do hereby declare that the particulars of my sister/allied concern(s) is/are as
follows:
(1) Name of business concern(s) : Delta School of Mathematics
(2) Name, Fathers Name & Address :
of the proprietor/partners/Directors : Engr. Bellal Hossain ShikderS/O. Late Shyad Ali Shikder
House # 8, Road # 12Dhanmondi, Dhaka.
Engr. Faizul Hoque ShikderS/O. Late Shyad Ali Shikder7D, House # 5/Kha
Satmasjid Road, MohammadpurDhaka.
(3) Business address : House # 83/A, Road # 11/A
Dhanmondi, Dhaka.
(4) Name of the Banker :
(5) Position of loans/liabilities : N/A
Name of loan Amount Present outstanding Security
- - - -
I confirm that I have no other sister/allied concern and liabilities beyond those as
declared herein.
(Engr. Bellal Hossain Shikder)Date : _____________________ Signature of the Sponsors/Director
7/30/2019 Delta System Limited
24/81
Form-3Name of the Company : Delta System LimitedBank/DFI/EEF
Sub : Declaration of particulars of my sister/allied concern(s).
Dear Sir,
I do hereby declare that the particulars of my sister/allied concern(s) is/are as
follows:
(1) Name of business concern(s) : Delta School of Mathematics
(2) Name, Fathers Name & Address :
of the proprietor/partners/Directors : Engr. Bellal Hossain ShikderS/O. Late Shyad Ali Shikder
House # 8, Road # 12Dhanmondi, Dhaka.
Engr. Faizul Hoque ShikderS/O. Late Shyad Ali Shikder7D, House # 5/Kha
Satmasjid Road, MohammadpurDhaka.
(3) Business address : House # 83/A, Road # 11/A
Dhanmondi, Dhaka.
(4) Name of the Banker :
(5) Position of loans/liabilities : N/A
Name of loan Amount Present outstanding Security
- - - -
I confirm that I have no other sister/allied concern and liabilities beyond those as
declared herein.
(Engr. Faizul Hoque Shikder)Date : _____________________ Signature of the Sponsors/Director
7/30/2019 Delta System Limited
25/81
Form-4
The Manager
..................................
..................................
..................................
Dear Sir,
Account No.
I/We have applied to the EEF Unit, Bangladesh Bank, Dhaka, for financial
assistance.
In this connection, I/we hereby authorize you to furnish to them any
information they may request from you regarding the conduct of the
account and loans/facilities that have been extended to me/us by your
Bank.
(Engr. Bellal Hossain Shikder)
Signature of Account Holder
7/30/2019 Delta System Limited
26/81
Form-4
The Manager
..................................
..................................
..................................
Dear Sir,
Account No.
I/We have applied to the EEF Unit, Bangladesh Bank, Dhaka, for financial
assistance.
In this connection, I/we hereby authorize you to furnish to them any
information they may request from you regarding the conduct of the
account and loans/facilities that have been extended to me/us by your
Bank.
(Engr. Faizul Hoque Shikder)
Signature of Account Holder
7/30/2019 Delta System Limited
27/81
PART II
FEASIBILITY REPORTON
DELTA SYSTEMS LIMITED
7/30/2019 Delta System Limited
28/81
CORPORATE OFFICE :
8, Panthapath, Level-14Unique Trade Center (UTC)
Tejgaon, Dhaka.
APRIL, 2003
7/30/2019 Delta System Limited
29/81
FEASIBILITY REPORTON
DELTA SYSTEMS LIMITED
TABLE OF CONTENTS PART-II
PROJECT SUMMERY iii
01. INTRODUCTION 1
02. ORGANIZATION & MANAGEMENT 3
03. TECHNICAL ASPECTS 6
04. MARKETING ASPECTS 12
05. SOCIO- ECONOMIC ASPECTS 15
06. FINANCIAL ASPECTS 17
ANNEXURE :
I. Cost of the Project 19
II. Cost of machinery & equipment 21
Iii. Cost of furniture, fixture & office equipment 22
IV. Preliminary expenses 23
V. Working capital 24
VI. Earning forecast 25
VII. Sales forecast 26
VIII. Cost of goods sold 27
IX. Administrative & selling expenses 30
X. Break- even analysis 32
XI. Cashflow statement 33
XII. Projected balance sheet 34
XIII. Internal rate of return (IRR) 35
XIV. Debt- service coverage ratio (DSCR) 36
XV. Pay- back period 37
XVI. Margin of Safety 38
7/30/2019 Delta System Limited
30/81
PROJECT SUMMARY
01. Name of the Project : Delta Systems Limited
02. Location of the Project : The proposed project will be located at
153/1, Green Road, Dhaka-1205. The
project site is very much suitable from
different perspectives and enjoys all
infrastructure and very good
communication facilities.
03. Address : Corporate Office :
8, Panthapath, Level-14
Unique Trade Center (UTC)
Tejgaon, Dhaka.
Project :153/1 Green Road
Dhaka-1205.
04. Project brief : The project envisages setting up of a
software industry for the development
and marketing of computer software and
ICT enabled services, which are of high
demand both at home and abroad.
The implementation of the project will
increase national earnings, make
significant contribution to GDP and create
employment opportunity considerably.
7/30/2019 Delta System Limited
31/81
05. Corporate setup / status : Private Limited Company.
06. Name & Address of the sponsors :
Name Address Status
Engr. Bellal HossainShikder
House # 8, Road # 12Dhanmondi, Dhaka
ManagingDirector
Engr. Faizul HoqueShikder
7D, House # 5/Kha, SatmasjidRoad, Mohammadpur, Dhaka
Director
07. Cost of the project & Means of finance :
(Tk. in 000)
Financing Cost incurred To be incurred Total
B. B. equity - 17961 17961
Sponsors equity 5620 13074 18694
Total capital outlay: 5620 31035 36655
08. Financial Performance :(Tk. in 000)
Year-1 Year-2 Year-3 Year-4 Year-5
Sales revenue
Gross profit
Operating profit
Net profit
16500
8408
3015
2182
18150
7301
1830
1325
19800
7625
2075
1502
21450
8218
2585
1871
23100
8842
3124
2262
7/30/2019 Delta System Limited
32/81
09. RATIO ANALYSIS :
FactorsProjects Ratios
Year-1 Year-2 Year-3 Year-4 Year-5
Gross profitto sales (%)
51 40 39 38 38
Operating profit
to sales (%)18 10 10 12 14
Net Profit
to sales (%)13 07 08 09 10
Debt-service CoverageRatio (times)
2.95 2.57 2.65 2.81 2.99
Fixed Assets Coverage
Ratio (times)1.83 1.81 1.77 1.72 1.64
10. BREAK-EVEN POINT : 60 % of assumed capacity.
11. INTERNAL RATE OF
RETURN (IRR) : %
12. PAY-BACK PERIOD : 5 years and 3 months.
13. MARGIN OF SAFETY : 40 %
14. Market Outlook :
The computer software and other IT enabled services have got a vast
market worldwide. This is getting an increasing trend with the change
in livelihood and faster job requirements. But there prevails a huge
demand-supply gap (supply-deficiency) in this sector. So the
software projects have a lot to exploit this opportunity.
15. Conclusion :
From feasibility report of the project it appears that the project is
technically feasible, commercially viable, financially profitable and
acceptable from the marketing point of view. And as such it is found
to be worthwhile and desirable for investment.
7/30/2019 Delta System Limited
33/81
FEASIBILITY REPORT
ONDELTA SYSTEMS LIMITED
1.0 INTRODUCTION
1.1 Background :
Bangladesh is a developing country which is facing numerous
problems. Among them, unemployment and poverty are the two
major ones. To solve these problems, we have to look for ways and
means and also to think of our strengths, weaknesses, opportunities
and threats.
If our strengths are first considered, it is evident that our human
resources, among all others, can be mentioned first. Again, if we talk
about the ICT Sector, we will be certainly boasted of our brilliant
professionals.
But these ICT Professionals and their capabilities are yet to be
focused in the international arena. If we can properly illuminate them
before the world, it could be a great source of foreign currency forthe country. To earn foreign currency, we must display the products
before the world, which our brilliant ICT Professionals can produce
and which will have worldwide demandofcourse, this is the Software
and ICT enabled services.
7/30/2019 Delta System Limited
34/81
Bangladesh is enriched with so many ICT Professionals who possess
the highest level of brilliance and excellent ideas and innovations.
These professionals are certainly the wealth of the nation who have
the ability to produce different software of international standard to
suit the customers need and thus can contribute to the economic
development of the country to a great extent.
1.2 The Project :
The proposed project is an attempt to make use of some of these ICT
Professionals in producing Software for both local and foreign
markets. The project is also aimed at contributing to the economic
development of the country.
7/30/2019 Delta System Limited
35/81
2.0 ORGANIZATION & MANAGEMENT
2.1 Name & Location of the Project :
The proposed project will be established under the name and style of
Delta Systems Limited to be located at 153/1, Green Road,
Dhaka-1215 having its corporate office at 8, Panthapath, Level-14,
Unique Trade Center (UTC), Tejgaon, Dhaka.
The location of the project is an excellent one from different
perspectives with all infrastructure and communication facilities being
available.
2.2 Nature of the Project :
The project, by nature, will be a software developing firm. However,
it will also go on with ICT enabled products/services.
The software and services to be developed will be sold in foreign as
well as local markets.
2.3 Organizational Setup :
The project is a Private Limited Company formed by the sponsors
having incorporation from the Registrar of Joint Stock Companies &
Firms, Government of Bangladesh.
7/30/2019 Delta System Limited
36/81
2.4 Particulars of the Sponsors :
The project will be promoted by the following sponsors :
Name & Address Status
Engr. Bellal Hossain ShikerHouse # 8, Road # 12
Dhanmondi, Dhaka-1205
Managing Director
Engr. Faizul Hoque Shikder7D, House # 5/KhaSatmasjid Road, Mohammadpur, Dhaka.
Director
2.5 Background & experience of the promoters :
A brief description of education, technical knowhow & skills,
experience, etc. of all the promoters of the project are given
hereunder:
Engr. Bellal Hossain Shikder :
The Managing Director of the Company Engr. Bellal Hossain Shikder,
aged 39, is a B. Sc. in Civil Engineering.
He is a well experienced in Information Technology (both hardware &
software). He has been running business in this sector for more than
one year and has already achieved remarkable success. His success
in the relevant sector made him confident enough to take up a
venture in larger shape.
Engr. Bellal Hossain is a social worker and he is engaged in various
socio-cultural activities.
7/30/2019 Delta System Limited
37/81
Engr. Faizul Hoque Shikder :
Engr. Faizul Hoque Shikder, aged 27 is a B. Sc. in Agricultural
Engineering and a Director of the Company. He is an experienced
businessman in IT sector, who has been doing this business for more
than one year.
Engr. Faizul Hoque is a young, dynamic person who is devoted to
business in IT sectors. He is very much enthusiastic and confident
about success in IT related businesses.
Engr. Faizul Hoque is a good organizer and social worker. He is a
popular person in his community and spends time to do social well
being.
2.6 Management :
The overall management and supervision of the project will be vested
with the Board of Directors. The Board of Directors will formulate
policies and will provide necessary guidelines for the day to day
operation of the project.
The managing Directors will be responsible to the Board of Directors.
He will look after the overall business affairs and administration of theproject and will provide all required logistic supports.
The Managing Director will be assisted by other directors of the
company. Besides, locally recruited managerial and technical
personnel will assist hi to run the management and operation of the
project.
7/30/2019 Delta System Limited
38/81
3.0 TECHNICAL ASPECTS
3.1 Project Purpose and Design :
The project envisages for setting up of a Software Development
Industry producing and marketing computer software and ICT related
products/services.
The project will be equipped with machinery and equipments to be
procured from reputed suppliers/manufacturers.
While designing the project, the requirement of physical facilities has
been considered in such a manner so that the project can operate at
its optimum capacity.
The sales revenue of the project will include mainly the sales of
computer software. Besides, the project has the plan to make earning
by way of :
Software development training.
Software outsourcing.
Providing ICT services.
The fixed cost of the project has been estimated at Tk 332.55 lacs,
while the total cost thereof at Tk 366.55 lacs.
7/30/2019 Delta System Limited
39/81
3.2 Product mix & Production Plan :
The production plan of the project is as under :
Products/Services Yr-1 Yr-2 Yr-3 Yr-4 Yr-5
Capacity utilization 50% 55% 60% 65% 70%
Software :
a. Clinic management
b. Banking
c. Accounting
Web Solution :
a. Domain registration
b. Web page development &
designing
25
5
50
200
2000
28
6
55
220
2200
30
6
60
240
2400
33
7
65
260
2600
35
7
70
280
2800
3.3 Technology & Process :
The steps involved in developing software including different phases.
Every phase demands its own point of view and technology-based
insight into the matter. The execution begins with the study of the
requirement, which is also called the system study. After the initial
thoughts have been gathered, they are put on paper and a final
logical checkup is performed. Once the logical system is developed,the system is designed and created by programming language.
Comprehensive testing is done at the end of each subsection of the
procedure. Once the system is built, proper documentation support
and help file is provided with the system.
7/30/2019 Delta System Limited
40/81
The following diagram shows the technical development steps of
software products :
Figure : Typical Development of Software
Initiation Use
Requirement
Specification
Acceptance
Tested System
V & V V & V
System Integration &System Tested
System
V & V V & V
Code
7/30/2019 Delta System Limited
41/81
Since a software product has large number users, it must be properly
designed, carefully implemented and thoroughly tested. Also, a
software product consists not only of the program code but also of all
the associated documents such as requirement specification
document, design document, test document and user manuals, etc.
Further, software products are often too large to be developed by any
individual programmer. Therefore, software products are usually
developed by a Software Development Team.
The team consists of different types of personnel with different
responsibilities like Analyst, Designer, Programmer, ester and the
Project Manager. The team is led by a Tem Leader and he/she must
be an active member of the team. Typically the size of the team
depends on the versatility of the software and the deadline to be met
by the team. The team members must include a representative from
the customer side or a domain expert to guide the team in every
phase of development.
3.4 Machinery & Equipments :
A list of the machinery and equipment required for he project has
been provided in Annexure-II, the total value of which stands at
Tk 50.00 lacs.
3.5 Store & Spares :
The annual requirement of store and spares has been estimated @
0.5%, 1.0%, 1.5%, 2.0% and 2.5% of the cost of machinery &
equipment for 1st, 2nd, 3rd, 4th and 5th year of operation
respectively.
7/30/2019 Delta System Limited
42/81
3.6 Repairs & Maintenance :
The annual cost of repairs and maintenance has been estimated
@ 0.5%, 1%, 1.5%, 2% & 2.5% from 1st to 5th year of operation,
respectively, on the value of buildings, machinery and transport/
vehicles.
3.7 Materials & Supplies :
The annual requirement of materials & supplies has been roughly
estimated at a lump sum of Tk 4.50 lacs per annum to be incurred
100% capacity level. The above cost includes some materials and
office supplies such as paper, pens, pencils, erasers, rubber stamps,
staples, stapler pins, envelopes, scotch-tapes, toners, cartridges,
printer ribbons, floppy diskettes, CD ROMs, etc.
3.8 Transport :
Provision has been kept for a sum of Tk 10.00 lacs of purchase a
microbus (9-seater) to facilitate transportation of the projects
personnel.
3.9 Furniture & Fixture :
A sum of Tk 35.00 lacs has been estimated to be incurred topurchase required furniture & fixture (setup cost), as shown in
Annesure-III
3.10 Erection & Installation :
The cost of erection & installation of the projects machinery has been
roughly estimated to be Tk. 10.00 lacs.
7/30/2019 Delta System Limited
43/81
3.11 Utilities :
Water : There will be free supply of water at the project premises.
Power : A sum of Tk 3.00 lacs has been estimated to be incurred
annually for the electricity to be consume at 100% capacity
utilization.
Fuel & Lubricants : For this purpose, a roughly estimated amount of
Tk 1.20 lacs has been considered to be incurred.
3.12 Insurance Coverage :
The main assets of the project will have insurance coverage @ 1% of
the total cost thereof.
3.13 Manpower Requirements :
On implementation, the project will require the services of 41 hired
people and for them, a total of Tk 6.33 lacs has been estimated to be
incurred per month as shown in Annexure-VIII.
3.14 Preliminary Expenses :
A sum of Tk 152.40 lacs will need to be incurred to meet up the
primary and startup expenses as shown in Annexure-IV.
3.15 Environment & Pollution Control :
The project will have no polluting no polluting effect on the
environment. Being environment friendly in nature, it will not require
incurring any cost to have pollution control.
7/30/2019 Delta System Limited
44/81
4.0 MARKETING ASPECTS
4.1 Product-mix:
The project has been designed to produce/develop mainly the
computer software. However, it will also produce and/or provide
some IT related products and services. A list of the product-mix of
the project is given below :
Software :
a. Clinic management
b. Banking
c. Accounting
Web Solution :
a. Domain registration
b. Web page development & designing.
4.2 Demand Analysis :
As stated earlier, the project is envisaged mainly to develop
computer software and market the same both at home and abroad.
Nowadays the computer software is becoming popular all over the
world and the demand for software is rapidly increasing day by day.
The people of the western countries are accustomed with Net
Shopping.
Software is also well known to and used by the non-resident
Bangladeshi buyers living in the western countries. The software to
be developed can be brought before these target people through Net.
In Bangladesh too, different target groups, especially the
7/30/2019 Delta System Limited
45/81
Government Departments, Banks, Hospitals, Clinics, Departmental
Stores and other business organizations have been showing interests
and desires for relevant software. So the demand for software is
quite apparent which is showing a rapid growth as a whole.
4.3 Pricing :
The prices of the product-mix of the project are primarily determined
as follows :
Sl. Product-Mix Price (Tk)
01.
02.
Software :
a. Clinic management
b. Banking
c. Accounting
Web solution :
a. Domain registration
b. Web page development & designing
1,00,000
5,00,000
70,000
20,000
2,000
The prices of the products are changeable depending on the market
situation. The sponsors will put much emphasis on the competitive
market prices and take all possible measures to gain maximum
market share.
7/30/2019 Delta System Limited
46/81
4.4 Sales Promotion :
To market the products/services of the project, the following
promotional activities will take place :
Introducing the products/services and their utilities through
seminar .
Aggressive marketing through talented trained and motivatedmarketing professionals.
Spread the word of ICT and its impact through expert and
renowned personalities of our country and abroad.
Advertisement through IT magazines, magazines, and daily
newspapers.
Corporate selling/direct marketing.
Word of mouth/personal selling.
4.5 Distribution Channel :
Distribution through web technology.
Direct implementation.
Distribution through software incubator BASIS/BCS.
Liaison office abroad.
7/30/2019 Delta System Limited
47/81
5.0 SOCIO-ECONOMIC ASPECT
5.1 Employment Generation :
Upon implementation, the project will generate employment for 41
people of different categories. Thus, on the one hand, the project will
play a significant role to lessen the unemployment problem of the
country and improve the living standard of the employed people. On
the other hand, additional employment opportunity will be created for
production, supply and distribution of materials and supplies.
5.2 Contribution to GDP :
The project will contribute a sum of Tk 178.79 lacs of the Gross
Domestic Product (GDP) of the country as shown below :
(Tk in 000)
A. Net Sale revenue (4th year) : 21450
B. Inter-farm transactions :
Materials & Supplies : 293
Travelling & conveyance : 75
Repairs & maintenance : 1200
Stores & spares : 1000
Utilities : 273
Printing & stationery : 390
Postage, telephone : 75
Legal & audit fee : 65
Ad & sales promotion : 200 : 3571
C. Contribution to GDP (AB) : 17879
7/30/2019 Delta System Limited
48/81
5.3 Foreign Exchange Earning :
The project, if implemented, will earn foreign exchange for the
country by way of developing software and exporting the same to
foreign countries, especially the USA and European countries. Thus
the project will contribute to the economic development of the
country.
5.4 Linkage Effects :
A considerable development of software & ICT services in the country
will certainly encourage some other groups to produce and supply
materials required to provide support services in this sector.
7/30/2019 Delta System Limited
49/81
6.0 FINANCIAL ASPECTS
6.1 Assumptions for Financial Analysis :
The following assumptions have been made to conduct relevant
financial analyses :
1) The economic life of the project has been considered to be 10 years
without major replacement.
2) The software producing/developing unit will work throughout the
year.
3) The cost of inputs/materials as well as sales have been assumed
to remain constant throughout the project years on the
assumption that the increase in prices of inputs/materials will be
offset by the proportionate increase in the selling price of output.
4) There will be 5% increase in salary and wages per year and one
months salary will be given as bonus every year.
5) Deprecations are charged at the rate of 10% on machinery &
equipments and 20% on vehicles & other assets on straight-line
method.
7/30/2019 Delta System Limited
50/81
6.2 Cost of the Project :
The total cost of the project has been estimated at Tk 366.55 lacs
which includes the projects fixed cost of Tk 332.55 lacs and total
working capital of Tk 34.00 lacs.
Out of the projects fixed cost, an amount of Tk 56.20 lacs has
already been incurred by the sponsors. The detailed description of the
project cost has been shown in AnnuxureI.
6.3 Means of finance :
(Tk. in 000)
Financing Cost incurred To be incurred Total
B. B. equity - 17961 17961
Sponsors equity 5620 13074 18694
Total capital outlay: 5620 31035 36655
6.4 Financial Performance :(Tk. in 000)
Year-1 Year-2 Year-3 Year-4 Year-5
Sales revenue
Gross profit
Operating profit
Net profit
16500
8408
3015
2182
18150
7301
1830
1325
19800
7625
2075
1502
21450
8218
2585
1871
23100
8842
3124
2262
7/30/2019 Delta System Limited
51/81
Annexure-I
COST OF THE PROJECT
&
MEANS OF FINANCE
(Tk. in "000")
A. COST OF THE PROJECT
Sl. ItemsCost already
incurred
Cost to beTotal
01.
02.
03.
04.
05.
06.
07.
08.
09.
Rent advance for 5 years (50%) :a) Corporate office (2844 sft)
b) Software laboratory (4500 sft)
Machinery & equipments
Freight & other charges (L.S)
Erection & installation (L.S)
Furniture & fixture
Transport/vehicles
Security deposits (Telephone)
Preliminary expenses(primary + startup expenses)
Contingencies
(5% on the costs to be incurred)
18000
1500
200
400
1500
-
20
200
-
3839
3500
300
600
2000
1000
40
15040
1316
5639
5000
500
1000
3500
1000
60
15240
1316
Fixed Cost of the Project: 5620 27635 33255
Total Working Capital : - 3400 3400
Total Cost of the Project : 5620 31035 36655
7/30/2019 Delta System Limited
52/81
B. MEANS OF FINANCE / PLAN OF INVESTMENT (PROPOSED)
Sl. Cost items EEF EquitySponsors
EquityTotal
01.
02.
03.
04.
05.
06.
07.
08.
09.
10.
Rent advance for 5 years (50%) :
c) Corporate office (2844 sft)
d) Software laboratory (4500 sft)
Machinery & equipments
Freight & other charges (L.S)
Erection & installation (L.S)
Furniture & fixture
Transport/vehicles
Security deposits (Telephone)
Preliminary expenses
(primary + startup expenses)
Contingencies
(5% on the costs to be incurred)
Working Capital
-
5000
458
490
1715
490
29
7468
645
1666
5639
-
42
510
1785
510
31
7772
671
1734
5639
5000
500
1000
3500
1000
60
15240
1316
3400
Total 17961 18694 36655
Ratio of investment : 49% 51% 100%
7/30/2019 Delta System Limited
53/81
Annexure-II
MACHINERY & EQUIPMENTS
Sl. Description of items Qty Rate (Tk.) Total (Tk.)
01. Server 03 3,75,000 11,25,000
02. Corporate office PC 12 62,500 7,50,000
03. Workstation PC 50 46,500 23,25,000
04. UPS 50 4,000 2,00,000
05. IPS 1 80,000 80,000
06. Generator 1 2,66,000 2,66,000
07. Printer 3
1,35,000
25,000
10,000
1,70,000
08. Scanner 3 10,000 30,000
09. Web camera 3 18,000 54,000
Total : - - 50,00,000
7/30/2019 Delta System Limited
54/81
Annexure-III
FURNITURE, FIXTURE & OFFICE EQUIPMENT
Sl. Description of items Qty Rate (Tk.) Total (Tk.)
01. Corporate office :
a) Table (Computer)
b) Computer Chair
c) Table rack
d) Executive table
e) Executive chair
f) Managing director table
g) Managing director chair
h) Director table
i) Director chair
j) Thai partition with glass
k) Reception desk with sofa
l) Conference table with 20 chairs
12
12
12
10
10
1
1
1
1
-
-
Lot
8,000
6,000
3,000
15,000
10,000
50,000
20,000
30,000
15,000
L.S.
L.S.
L. S.
96,000
72,000
36,000
1,50,000
1,00,000
50,000
20,000
30,000
15,000
12,00,000
2,00,000
3,36,000
02. Laboratory :
a) Computer tables and chair
b) Reception with sofa
c) A. C
d) Telephone (mobile)
e) Fax
f) Photo copier
53
1 set
10
10
2
2
5,000
50,000
50,000
12,000
30,000
1,00,000
2,65,000
50,000
5,00,000
1,20,000
60,000
2,00,000
Total : - - 35,00,000
7/30/2019 Delta System Limited
55/81
Annexure-IV
PRELIMINARY EXPENSES
(TK in ooo)
Sl. Particulars Total
01.
02.
03.
04.
a) Primary Expenses :
Company incorporation, trade license, consultancy,project appraisal /evaluation, documentation, etc.
b) Licensing :
Microsoft Development Network (MSDN) : 150
OracleDevelopment Suite : 800
Window
s 200 Operation System : 400(Server & Professional)
c) VSAT/Bandwidth/Radio Link
d) Membership with BASIS (Bangladesh Association ofSoftware Information Service)
Pre-operating & Startup Expenses :
a) Salary for 12 months (Ref: Annexure-VIII & IX)
b) Materials & Supplies for 12 months(Ref: Annexure-VIII)
c) Bandwidth charges for 12 months(128 kbps @ Tk 2,00,000/month)
Launching cost (L.S.)
Others (L.S.)
300
1350
400
20
9845
225
2400
500
200
Total : 15240
7/30/2019 Delta System Limited
56/81
7/30/2019 Delta System Limited
57/81
Annexure-V
WORKING CAPITAL
(Tk. in "000")
Items Tied-up period Amount
Materials & Supplies 30 days 19
Stores & Spares 180 days 125
Work in Process (WIP) 60 days 1765
Receivables 60 days 1349
Other expenses (L. S.) 30 days 142
Total Working Capital Required : 3400
7/30/2019 Delta System Limited
58/81
Annexure-VI
EARNING FORECAST
(Tk. in "000")
Items Yr-1 Yr-2 Yr-3 Yr-4 Yr-5
Sales Revenue 16500 18150 19800 21450 23100
Cost of Goods Sold 8092 10849 12175 13232 14258
Gross Profit 8408 7301 7625 8218 8842
Admin & Selling Expenses 5393 5471 5551 5633 5718
Operating Profit 3015 1830 2074 2585 3124
Financial Expenses - - - - -
Net Profit before Tax 3015 1830 2074 2585 3124
Income Tax - - - - -
Net Profit after Tax 3015 1830 2074 2585 3124
Bond Purchase (30%) 905 549 622 776 937
Net Profit after Bond Purchase 2110 1281 1452 1809 2187
Return on Bond (8%) 72 44 50 62 75
Net Profit after Return on Bond 2182 1325 1502 1871 2262
Ratios :
Gross Profit to Sales (%) 51 40 39 38 38
Operating Profit to Sales (%) 18 10 10 12 14
Net Profit to Sales (%) 13 07 08 09 10
7/30/2019 Delta System Limited
59/81
Annexure-VII
SALES FORECAST
(Tk in 000)Items Yr-1 Yr-2 Yr-3 Yr-4 Yr-5
Sales at 100% capacity 33000 33000 33000 33000 33000
Assumed capacity 50% 55% 60% 65% 70%
Sales at assumed capacity 16500 18150 19800 21450 23100
Assumption :
1) From 1st to 5th year of operation of the project, the capacities to
be utilized have been assumed to be 50%, 55%, 60%. 65% &
70% respectively.
2) Products/Services & Sales :
At 100% capacity, the sales achievement has been estimated as
follows :
Items Qty (nos) Rate(Tk) Total (Tk)
Softwares :
a. Clinic managementb. Bankingc. Accounting
Web solution :
a. Domain registrationb. Web page development &
designing
5010100
4004000
1,00,0005,00,000
70,000
20,0002,000
50,00,00050,00,00070,00,000
80,00,00080,00,000
Total : - - 3,30,00,000
7/30/2019 Delta System Limited
60/81
Annexure-VIII
COST OF GOODS SOLD
(Tk. in "000")
Particulars Yr-1 Yr-2 Yr-3 Yr-4 Yr-5
Materials & Supplies 220 248 270 293 315
Salary & Wages 7280 7644 8026 8427 8849
Stores & Spares 250 500 750 1000 1250
Water, Power, Fuel 210 231 252 273 294
Repairs & Maintenance 300 600 900 1200 1500
Rent, Tax, Insurance 333 333 333 333 333
Depreciation 1814 1814 1814 1814 1814
Other expenses (L.S.) 180 185 190 195 200
Total Cost of Production 10592 11555 12535 13535 14555
Add: Opening WIP (60 days) - 1765 2220 2459 2666
Total stock of WIP 10592 13320 14755 15994 17221
Less: Closing WIP (60 days) 1765 2220 2459 2666 2870
Cost of goods manufactured 8827 11100 12296 13328 14351
Add: Opening FG (30 days) - 735 986 1107 1203
Cost goods available for sales 8827 11835 13282 14435 15554
Less: Closing FG (30 days) 735 986 1107 1203 1296
Cost of Goods Sold 8092 10849 12175 13232 14258
ASSUMPTIONS :
1) A period of 60 days has been considered to determine the work
in process (WIP) based on the assumption that the development
of softwares would require 3090 days depending on their
sizes/types, thus 60 days on an average.
2) To determine the inventory of finished goods (FG), an average
period of 30 days has been considered on the assumption that
any softwares, regardless of their size or types, would require a
minimum of 30 days to market the same.
7/30/2019 Delta System Limited
61/81
3) Capacity Utilization :
From 1st to 5th year of operation, the capacities to be utilized have
been assumed to be 50%, 55%, 60%, 65% & 70% respectively.
4) Cost of Materials and Supplies :
At 100 percent efficiency, a sum of Tk 4,50,000 has been
roughly estimated to be incurred annually in this head of
expenditure. Thus the annual cost of materials and supplies, at
the assumed capacities, would be Tk 2,25,000; Tk 2,47,500;
Tk 2,70,000; Tk 2,92,500 and Tk 3,15,000.
5) Stores and Spares :
The cost of stores and spares has been considered to be 0.5%, 1%,
1.5%, 2% & 2.5% on the value of machinery and equipments.
6) Repairs and Maintenance :
The costs for repairs and maintenance have been considered to
be 0.5%, 1%, 1.5%, 2% & 2.5% on the value of
transport/vehicles and machinery & equipments.
7) Rent, Tax, Insurance :
The cost involvement in this head of expenditure has been
considered to be 1% of the fixed cost of the project.
8) Depreciation :
Items Cost Rate Amount
Machinery & Equipments
Furniture & Fixture
Transport/Vehicles
Intangible assets
5000
3500
1000
2070
10%
20%
20%
20%
500
700
200
414
Total : - - 1814
7/30/2019 Delta System Limited
62/81
9) Water, Power & Fuel :
a. Water : There will be free supply of water in the office/project
premises as the cost will be borne by the landlord.
b. Power : A lump sum of Tk 3,00,000 has been roughly
estimated to be incurred annual for the electricity to be
consumed at 100% capacity utilization.
c. Fuel : For this purpose, a roughly estimated amount of
Tk 1,20,000 has been considered to be incurred.
Total (a+b+c) : Tk 4,20,000 per annum at 100% capacity. Therefore
at the assumed capacities, the annual costs would be Tk 2,10,000;
Tk 2,31,000; Tk 2,52,000; Tk 2,73,000 and Tk 2,94,000 from 1st to
5th year of operation respectively.
10) Salary (Technical Personnel) :
Category/Designation No.Monthly
Salary (Tk)
Annual Salary
(Tk in 000)
Software Development :
Project Manager
Senior System AnalystSystem Administrator (network)System Analyst
Business AnalystSenior ProgrammerProgrammer
01
010501
031501
40,000
30,0001,00,000
30,000
60,0002,25,000
25,000
480
3601200360
7202700300
Sub-Total : 27 5,10,000 6120
Web Solution :Web administratorWe Page Designer
0102
20,00030,000
240360
Sub-Total : 03 50,000 600Total : 30 5,60,000 6720
(Tk in 000)
Yr-1 Yr-2 Yr-3 Yr-4 Yr-5
SalaryIncrement (5%)Bonus (one months salary)
6720-
560
6720336588
7056353617
7409370684
7779
389681
Total : 7280 7644 8026 8427 8849
7/30/2019 Delta System Limited
63/81
Annexure-IX
ADMINISTRATIVE & SELLING EXPENSES
(Tk. in 000)
Sl. Particulars Yr-1 Yr-2 Yr-3 Yr-4 Yr-5
01. Directors remuneration 960 960 960 960 960
02. Administrative salary 949 997 1047 1099 1154
03. Depreciation & write-off 2634 2634 2634 2634 2634
04. Travelling & conveyance 60 65 70 75 80
05. Printing & stationery 360 370 380 390 400
06. Postage, telegram & telephone 60 65 70 75 80
07. Legal & audit fee 50 55 60 65 70
08. Ad & sales promotion (LS) 200 200 200 200 200
09. Miscellaneous expenses 120 125 130 135 140
Total : 5393 5471 5551 5633 5718
Assumptions :
01. Directors Remuneration :
An amount of Tk 80,000 per month has been considered to be
the Directors remuneration of 2 Directors. Thus, the annual
remuneration of Directors stands at Tk 12,00,000 annually.
02. Administrative Salary :
Category/Designation No.Monthly Salary
(Tk)Annual Salary
(Tk 000)
Administrative :Office Manager
AccountantReceptionistAttendant/Cleaner/SecurityDriver
01
01010401
10,000
8,0004,000
12,0004,000
120
9648
14448
Sub-Total : 04 38,000 456
Marketing :Marketing Manager
Marketing Executive
01
02
15,000
20,000
180
240
Sub-Total : 08 38,000 456
Total : 11 73,000 876
7/30/2019 Delta System Limited
64/81
(Tk in 000)
Yr-1 Yr-2 Yr-3 Yr-4 Yr-5
Salary 876 876 920 966 1014
Increment (5%) - 44 46 49 51
Bonus (1 months salary) 73 77 81 85 89
Total : 949 997 1047 1099 1154
04. Depreciation and write-off :
(Tk. in 000)
Items Cost Rate Deprecation
Preliminary expenses 13170 20% 2634
Total : - - 2634
7/30/2019 Delta System Limited
65/81
Annexure-X
BREAK-EVEN ANALYSIS
(Tk. in 000)
1.
2.
3.
Sales revenue (4th year)
Total cost of operation, admin & selling and financial expenses:
21450
Analysis of total cost Total cost Fixed cost Variable cost
Materials & SuppliesSalary and wages (Laboratory)Repairs & maintenanceTax, insurance, etc.
Water, power, fuelStores & spares
Administrative salaryPostage, telegram, tel.
Printing & stationeryConveyance & travellingDepreciation & write-off
Miscellaneous expensesLegal & audit feeAd & sales promotion
Financial expense
29384271200333
2731000
205975
39075
4448
33065200
-
---
333
--
107025
78-
4448
6665-
-
29384271200
-
2731000
98950
31275
-
264-200
-
Total : 19168 5015 13083
Break-even point (BEP) :
PV Ratio = (Sales Variable cost) / Sales
= (21450 13083)/21450 = 0.39
BEP (Sales) = Fixed cost / PV Ratio
= 5015 / 0.39
= Tk 12859 thousand i.e. 60% of assumed capacity.
7/30/2019 Delta System Limited
66/81
Annexure-XI
CASHFLOW STATEMENT
(Tk. in 000)
A. Source of fund : Const. Yr Yr-1 Yr-2 Yr-3 Yr-4 Yr-5
Sponsors equity
Depr. & write-off
Operating Profit
B.B. equity
Return on bond
16960
-
-
16295
-
1734
4448
3015
1666
72
-
4448
1830
-
44
-
4448
2074
-
50
-
4448
2585
-
62
-
4448
3124
-
75
Total : 33255 10935 6322 6572 7095 7647
B. Utilization of Fund :
Capital expenditure
(fixed assets)
Increase in current
assets
Buy-back of B.B. equity
Investment on bond
33255
-
-
-
-
3400
2245
905
-
-
2245
549
-
-
2245
622
-
-
2245
776
-
-
2245
937
Total : 33255 6550 2794 2867 3021 3182
Cash surplus (AB)
Opening cash balance
Closing cash balance
-
-
-
4385
-
4385
3528
4385
7913
3705
7913
11618
4074
11618
15692
4465
15692
20157
7/30/2019 Delta System Limited
67/81
Annexure-XII
PROJECTED BALANCE SHEET
(Tk. in 000)
Items Const. Yr Yr-1 Yr-2 Yr-3 Yr-4 Yr-5
Properties & Assets:
Current Assets :
Cash Balance
Investment On Bond
Other current assets
-
-
-
4385
905
3400
7913
1454
3400
11618
2076
3400
15692
2852
3400
20157
3789
3400Sub total : - 8690 12767 17094 21944 27346
Fixed assets :
Total Fixed Assets 33255 28807 23459 19911 15463 11015
Sub-total : 33255 28807 23459 19911 15463 11015
Total assets : 33255 37497 37126 37005 37407 38361
LIABILITIES AND
SPONSORS EQUITY :
Liabilities :
B.B. equity/share
Working capital loanOther current liabs
126295
--
15716
--
13471
--
11226
--
8981
--
6736
--
Total liabilities : 16295 15716 13471 11226 8981 6736
Sponsors equity :
Piad-up capital
Investment on bond
Retained earnings
16960
-
-
18694
905
2182
18694
1454
3507
18694
2076
5009
18694
2852
6880
18694
3789
9142
Total equity : 16960 21781 23655 25779 28426 31625
Total liabs & equity : 33255 37497 37126 37005 37407 38361
7/30/2019 Delta System Limited
68/81
Annexure-XIII
INTERNAL RATE OF RETURN
(Tk. in 000)
Year Net Cash flow NPV disc. @ 15% NPV disc. @ 20%
0 (33255) (33255) (33255)
1 7463 6493 6217
2 6278 4746 4357
3 6522 4291 3776
4 7033 4023 3390
5-10 7572 16378 12153
11 500 108 68
Total : 2784 (3294)
IRR = 15 + (20-15) X 2784/(2784 + 3294)
= 15 + 5 X 0.4580 = 15 + 2.29
= 17.29, say 17%
Assumptions :
01. The economic life of the project has been considered to be 10 years
02. Benefit/Net Cash flow :
(Tk. in 000)
Year Operating profit Depr. & write-off Total
1 3015 4448 7463
2 1830 4448 6278
3 2074 4448 6522
4 2585 4448 7033
5 3124 4448 7572
03. Salvage Value :
(Tk. in 000)
Item Total value % of recovery Recoverable
Machinery 5000 10% 500
Total : - - 500
7/30/2019 Delta System Limited
69/81
Annexure-XIV
DEBT-SERVICE COVERAGE RATIO
(Tk. in 000)
A. Income Yr-1 Yr-2 Yr-3 Yr-4 Yr-5
Net profit after
return on bond2182 1325 1502 1871 2262
Depreciation &
write-off4448 4448 4448 4448 4448
Total : 6630 5773 5950 6319 6710
B. Liabilities :
Buy-back of B.B. equity 2245 2245 2245 2245 2245
Total : 2245 2245 2245 2245 2245
C. Debt-service coverage
ratio (times)
2.95 2.57 2.65 2.81 2.99
7/30/2019 Delta System Limited
70/81
Annexure-XV
PAY-BACK PERIOD
(Tk. in 000)
1. Amount to be paid (excluding value of land) : 33255
2. Amount available for recovery of the value of assets as follows :
Items Yr-1 Yr-2 Yr-3 Yr-4 Yr-5
Net profit
Depr. & write-off
2182
4448
1325
4448
1502
4448
1871
4448
2262
4448
Total : 6630 5773 5950 6319 6710
3. Pay-back Period :
Year Amount to berecovered
Amount availablefor recovery
Balance
1
2
3
4
5
33255
26625
20852
14902
8583
6630
5773
5950
6319
6710
26625
20852
14902
8583
1873
The pay-back period will be 5 years and 3 months.
7/30/2019 Delta System Limited
71/81
Annexure-XVI
MARGIN OF SAFETY
(Tk. in 000)
Margin of Safety =Sales
Point)BreakevenatSales(Sales
=21450
12859)-(21450
=21450
8591
= 0.4005, say 40%
7/30/2019 Delta System Limited
72/81
Annexure-XVIII
CONSTRUCTION & CIVIL WORKS
Sl. Description Area/Qty Rate (Tk) Amount (Tk)
01. Office building (50 X 30 ) - Pucca 1500 sft 985/sft 14,77,500
02. Godown (60 X 30 ) Semi-Pucca 1800 sft 535/sft 9,63,000
03. Hatchery shed (110 X 30 ) 3300 sft 375/sft 12,37,500
04. Breeding Tank (20 dia) - L.S. 2,25,000
05. Overhead Tank (15 X 12 X 8 - 6 ) - L.S. 5,50,000
06. Pump house (20 X 10 ) - Pucca 200 sft 985/sft 1,97,000
07.Labour Shed (25 X 30 ) Semi-
750 sft 350/sft 2,62,500
08.Staff Quarter (54 X 30 )- Semi-
1620 sft 535/sft 8,66,700
09. Cistern (12 X 8 ) 10 Nos. 20,000 each 2,00,000
10. Cistern (8 X 6 ) 08 Nos. 15,000 each 1,20,000
11. Spawning Tank (10 dia) 02 Nos. 50,000/tank 1,00,000
12. Incubation Jar 2 - 3 dia (RCC) 06 Nos. 10,000 each 60,000
13. Incubation Jar 2 - 3 dia (MS sheet) 06 Nos. 8,000 each 48,000
14. Nursery pond (125 X 80 X 15 ) 04 Nos. 1.25/cft 7,50,000
15. Fishery Pond (150 X 80 ) 15 depth 16 Nos. 2,00,000 32,00,000
16. Deep tube-well 01 No. 9,50,000 9,50,000
17. Boundary with barbed fencing - L.S. 8,00,000
18. Guard/Reception Room (10 X 8 ) 80 sft 985/sft 78,800
19. Miscellaneous - - 2,55,000
Total : 1,23,41,000
7/30/2019 Delta System Limited
73/81
PART III
MEMORANDUM & ARTICLES OF ASSOCIATIONOF
DELTA SYSTEMS LIMITED
7/30/2019 Delta System Limited
74/81
7/30/2019 Delta System Limited
75/81
SALES ESTIMATE
(Tk. in "000")
Items Yr-1 Yr-2 Yr-3 Yr-4 Yr-5
Sales at rated capacity
Assumed capacity
Sales at assumed capacity
ASSUMPTIONS:
1. At 100% capacity, the projects annual production at different stages will be
as follows:
Production of fish spawn:
a) Crap fish (200 pcs X 0.50 kg / fish / year) = 100 kg
b) Sarputi (2,000 pcs X 0.050kg / fish / year) = 100 kg
Production of fish fry:
From fish spawn, 50% will be sold out directly to the fish farmers while 50% will be kept for fry
production as follows:
a) Crap fish (50 kg spawn X 1,00,000 pcs of fry per kg) = 50,00,000 pcs
b) Sarputi (50 kg spawn X 1,00,000 pcs of fry per kg) = 50,00,000 pcs
Production of fish:
From fish fry, the production of fish will be made as follows:
a) Crap fish (50,00,000 pcs less sale of 47,00,000 pcs) = 3,00,000 pcs of 0.750 kg body wt.
each.
c) Sarputi (50,00,000 pcs less sale of 40,00,000 pcs) = 10,00,000 pcs of 0.200 kg body wt. each.
The above production of fish will be made under the arrangement that there will be two production
cycles in a year- each having 3000 pcs of Crap fish per pond (thus 3,00,000 pcs of fish in 50
7/30/2019 Delta System Limited
76/81
ponds), with which a joint cultivation of 10,000 pcs of Sarputi per pond (thus 10,00,000 ocs in 50
ponds) will also be made.
2. Estimate of sales:
At 100% capacity, the sales of different products of the project have been summarized and
estimated as follows:
Production unit Fish variety Product-mix Quality Rate (Tk) Ammount
Hatchery Crap
Sarputi
Fish spawn
Fish fry
Fish spawn
Fish fry
50 kg
47,00,000 pcs
50 kg
40,00,000 pcs
3500/kg
2.50/pc.
3500/kg
0.50/pc.
Sub-Total: - - - -Fishery Crap
Sarputi
Fish
Fish
2,25,000 kg
2,00,000 kg
55/kg
60/kg
Sub-Total: - - - -
Total: - - - -
3. From 1st to 5th year of operation, the production capacity to be achieved have been assumed to be
70%, 75%, 80%, 85% & 90% respectively.
7/30/2019 Delta System Limited
77/81
Annexure-VIII
COST OF GOODS SOLD
(Tk. in "000")
Particulars Yr-1 Yr-2 Yr-3 Yr-4 Yr-5
Raw Materials & Supplies
Wages and Salaries
Stores and Spares
Water, Power, Fuel
Repairs & Maintenance
Rent, Tax, Insurance
Depreciation
Other expenses
Cost of goods sold
ASSUMPTIONS:
1. At 100% capacity, the annual production is 2,70,000 kg of fish (Carp & Sarputi) and 52,00,000 pcs
of fish fry (Carp & Sarputi).
2. Cost of raw materials and supply:
a) Fish feed:
For fish = 2 kg feed/kg fish X 2,70,000 kg fish X Tk 17/kg feed
= Tk 91,80,000
For fish fry = 3 kg feed / 1000 pcs fish fry X 52,00,000 pcs fish fry X Tk 15/ kg feed
7/30/2019 Delta System Limited
78/81
Total = Tk 94,14,000
b) Medicine & Supply:
For 50 Bigha = Tk 900 / bigha X 50 Bigha X 3 times / year
(Total pond area) = Tk 1,35,000
Total (a + b) = Tk 95,49,000
Therefore, at 70%, 75%, 80%, 85% & 90% capacity utilization from 1st to 5th year of operation,
the cost of raw materials & supplies would stand at Tk 66,84,300; Tk 71,61,750;
Tk 76,39,200; Tk 81,16,650 and Tk 85,94,100 respectively.
4. Salaries & Wages:
Designation No. Monthly Salary (Tk)Annual Salary
(Tk "000")
Hatchery Officer 01 10,000 120
Hatchery Assistant 02 8,000 96
Laboratory Assistant 02 8,000 96
Feed Assistant 02 8,000 96
Water Control Assistant 02 6,000 72
Machine operator 01 3,000 36
Unskilled worker 10 20,000 240
Total: 20 63,000 756
(Tk. "000")
Yr-1 Yr-2 Yr-3 Yr-4 Yr-5
Salary 756 756 794 834 876
Increment (5%) - 38 40 42 44
Bonus (1 Month's Salary) 63 66 70 73 77
Total: 819 860 904 949 997
5. Stores & Spares:
7/30/2019 Delta System Limited
79/81
Cost considered @ 0.5%, 1%, 1.5%, 2% & 2.5% on value of Machinery form 1st to 5th year
respectively.
6. Repairs & Maintenance:
Cost for repair & maintenance of machinery and bldg. estimated at 0.5%, 1%, 1.5%, 2% &
2.5% in 1st, 2nd, 3rd, 4th & 5th yearrespectively as follows:
Items Yr-1 Yr-2 Yr-3 Yr-4 Yr-5
Buildings
Machinery
Total:
7. Rent, Tax & Insurance:
It has been estimated at 1% of the total Fixed Cost of the Project (excluding the value of land).
8. Depreciation:
(Tk. in "000")
Items Cost Rate Amount
Building 5%
Machinery 10%
Transport 20%
Total: - -
9. Water, Power & Fuel:
(a) Water: Supply will be met up by sinking a submersible pump and deep tube well.
(b) Power: Supply will be obtained from PDB/REB.
7/30/2019 Delta System Limited
80/81
Cost:
For water pump : 12 kw X 8hrs X365 days X Tk 4.10 = Tk 1,43,644
For lighting : 10 kw X 8hrs X365 days X Tk 4.10 = Tk 1,19,720
Total power cost = Tk 2, 63, 384
(d) Fuel/Lubricant: Tk 1,20,000/ Year (L.S.)
Total (a+b+c) = Tk 3,83,384 annually at 100% capacity utilization.
Therefore, at 70%, 75%, 80%, 85% & 90% capacity utilization, the costs would take place as
follows:
1st Year
2nd Year
3rd Year
4th Year
5th Year
7/30/2019 Delta System Limited
81/81
Annexure-X
BREAK-EVEN ANALYSIS
(Tk. in 000)
1.
2.
Sales revenue (4th year)
Total cost of operation, admin & selling and financial expenses
Analysis of total cost Total cost Fixed cost Variable cost
Raw materials
Salary and wages
Repairs & maintenance
Tax, insurance, etc.
Water, power, fuel
Stores & spares
Administrative salary
Postage, telegram, tel.
Printing & stationery
Conveyance & traveling
Depreciation & write-off
Miscellaneous expenses
Legal & audit fee
Ad & sales promotion
Financial expense -
-
-
-
-
-
-
-
-
-
-
-
-
Total:
Break-even point (BEP):PV Ratio = (Sales Variable cost) / Sales