Topics: Variable cost, Costs, Fixed cost Pages: 13 (2374 words) Published: April 21, 2013

PROJECT on SHANJ BATTI A Handicraft retail shop
on February 25, 2013 in Marketing


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
                              1st yr

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...
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