PROJECT on SHANJ BATTI A Handicraft retail shop
on February 25, 2013 in Marketing
SUMMARY OF THE PROJECT
1. Name of the project : shanj batti (A Handicraft retail shop) 2. Location of the project : The project is located at house # 22, road no #130, Gulshan-1.The project site also enjoys all Infrastructures facilities such as electricity, skilled labor etc. 3. Mailing address of the project : House no # 22, Road no # 130, Gulshan-1,Dhaka. 4 . Registered Office: -do- 5. Objective of the project and project description :
The project has been designed to set up a Handicraft retail shop Project at Gulshan. The annual rated capacity of the project based on single shifts operation per day and 300 working days in a year would be as under: Item Quantity 100% operation Wall matt 4000 Nakshi katha 3000 Ornaments 4900
6. Investment Cost and Source of Finance:
The total investment required for the project is estimated at Tk. 13130000 crore of which equity participation would be Tk. 12180000 crore (92.76 %) and the rest of will be Bank loan. Debt – Equity Ratio: – 7. 24 : 92.76
7. Profitability & Result of Financial Analysis :
The year – wise operating profit of the project on completion and the results of financial analysis are shown as follows : Tk. In ‘000
Net Profit 17603
8. Break – Even Sales : 36% ( at 70% efficiency ).
9. Benefit cost ratio : 1.50
10. Debt – service coverage ratio : 2.06 ( at the 3rd yr ).
11. IRR : 43.48%
12. Gross Return of Sales : 16% ( Gross in 3rd yr. ). 13. Assumption:
a ) Rate of Interest : 15 % on fixed capital b ) Repayment of Bank : 7 years excluding grace period. Investment
c ) Grace period : 18 months. MANAGEMENT ASPECT
Corporate Set – up :
The project is a Private Limited Company in the name & styles of shanj batti – A Handicraft retail shop. The Managing Director of the said project, Mr. X, is a renowned industrialist in the country. She is now running a big handicraft project. The Directors also engaged in different types of businesses like export-import, manufacturing and other trading related items. The particulars of Board of Directors of the unit may be seen as under:
Name of the Directors Extent of Status
Shareholding Mr. X 60% Managing Director Mr. Y 40% Director
It is expected that we will be able to run the project most efficiently and successfully.
Legal structure of the proposed company :
The overall management during implementation and on completion of the project will be vested with the Managing Director. The Managing Director will assume overall responsibilities...