INTRODUCTION

Bangladesh is a developing country. So for continuing its development

strengthening economy is very much crucial. To build up the economic stability of
the country, some sectors play a vital role and ‘Jute’ made goods in the export
sector is one of the most important sector amongst them. Because it deals with
the jute which is the most important factor to enrich the economy. It flows the
funds from the surplus unit to deficit unit. And this activity facilitating the efficient
allocation of resources and accelerates economic growth. Some unavoidable
circumstances put the whole world’s economy in a serious recession and it turns
to be more awkward for the third world countries like Bangladesh. Major
exporting sector like garments tends to cope with new markets and losses its
exciting markets. On the other hand big donor countries refuse to continue their
foreign aid. In this ghastly situation we have to reform our economy and make
our economic sector stronger especially jute made goods exporting sector. As a
cause to globalization competition in this sector is in creasing very fast. It is a
very good sector to improve our economy.

Jute industry played an important role in the economic development of Bengal. At

the beginning of the 20th century, Bengal could boast of only one manufacturing
INDUSTRY-just. It employed about half of the total industrial work force of
Bengal. In 1900-1, the export value of jute manufactures accounted for nearly a
third of the entire export trade of Bengal. Bengalis generally occupied only the
intermediate position in the industry. The raw jute for the industry used to come
from Eastern Bengal.

Several historical events were responsible for the growth of the jute industry. In
1838, the Dutch government specified bags made of jute instead of tax for
carrying coffee from East Indies.

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Although Bengal, particularly, Easter Bengal, was the main producer of quality
raw jute. The first jute mill was established at Risraw near CALCUTTA on the
bank of the HUGHLI in 1855, after 20 years of mechanical spinning of jute in
Dundee.

The delay was due to the non-availability of technical hands and power to drive
machines. In 1854, coal mines were opened at Raniganj. Attracted by the easy
availability of power, George Aucland, an Englishman established the first jute
mill. But he couldn’t make reasonable profiles and left the business. In 1859 the
Bornee Company founded the second mill with the spinning and weaving
facilities. Unlike the Aucland mill, it started prospering after its establishment.
Between 1868 and 1873, these mills made large profits. Five new companies
started in 1874 and eight more in 1875. Thus Bengal experienced a real boom in
jute industry towards end of the 19th century.

With the establishment of jute mills, Bengal became a major exporter of sacking
bags. Calcutta appeared to be a stronger competitor of Dundee and successfully
penetrated into Dundee’s Hessian market in many parts of the world, including
America, primarily because Calcutta had the cost advantage in producing jute
goods. Secondly, it was situated in close proximity to the jute growing districts of
Eastern Bengal and Assam. Thirdly it had cheap labour. Fourthly, the mills ran for
15 to 16 hours, and sometimes even for 22 hours daily. This led to a clear
advantage of Calcutta manufacture in monetary terms.

Jute was put to industrial use and it was used mostly for domestic purposes. In
1872, when industrial use of jute had begun, it was mainly grown in the districts
of PABNA, BOGRA, DARJEELING, DINAJPUR, RANGPUR and HUGHLI (West
Bengal). The ratio of land under jute cultivation to total cropped land in this
district in 1872 was 14%, 11%, 9%, 7%, 6% and 5% respectively. Rangpur
(28%), Bogra (25%), Tipura (24%), Pabna (21%), Dhaka (18%), Faridpur (16%),
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Hughli (west bengla, 13%), Rajshahi (11%), Jessore (10%), Nadia (10%) and
Dinajpur (7%).

Jute is the ‘Golden Fiber’ of Bangladesh. It has various inherent characteristics

like, high tensile strength, low extensibility, long durability, fire and heat
resistance, silkiness, luster and long staple length, Bangladesh is one of the
largest jute producers in the world producing around 20% of the world
production. Jute is not only a major textile fiber but is also a raw material for
nontraditional and value- added products helping in environment protection and
maintain ecological balance. Besides it has an enviable market both local and
international.

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PROBLEM STATEMENT

 Complicated Banking Procedure – An export process is a process for

the display of industrial goods to the foreign buyers to make them
acquainted with the export of the country. This procedure can be
happen with the help of banking. But in Bangladesh banking producers
create much complication for the exporter.
 Bank interest rate is prohibited – The bank interest rate is one of the
great problems for the export.
 Difficulties in custom clearance – Custom clearance is the most
important problems of export. In is time consuming due to system of
custom authority.
 Difficulties in obtaining direct access to market –We have to face some
difficulties in obtaining direct access to market.
 Bureaucratic problem –Bureaucratic problem as a problem for not
operating the rational matters in a proper way.
 Major problems of the jute mills are –

− Increase in the cost of production while the sales prices of jute

Goods remain at the same level or even decline.

− Accumulation of huge losses and consequently of huge debts.

− Decline in the exports of jute goods

− Electricity failures

− Excessive wastage.

− Labors unrest.

− Frequent change in government policies.

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OBJECTIVE
 To understand some recent change of environment.
 To evaluate the performance of our jute made products.
 To measure the efficiency of our supply.
 To understand the current financial position of our own effort.

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SCOPE OF THE STUDY
There are many export related organizations in Bangladesh. The main export
related organization is “export promotion bureau” and “Bangladesh Export
Processing Zone Authority”. This study concentrates only on export scenery
in Bangladesh. Export products are the main source of national income. The
sample of this study has been prepared only by the jute relation. We had the
help of-

 Bangladesh council of scientific and industrial research (BCSIR)

 Bangladesh Jute Research Institute (BJRI)
 Directorate of Jute.

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METHODOLOGY
 The project is mainly focused on the performance evaluation of jute.
 The project secondary data were collected from articles, journals,
books, web sites. Etc.
 The basic method that is used to analysis the data is qualitative
analysis.

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LIMITATION
There were some limitations in the process of preparing this report. They
are as follows-

 It was not possible to obtain more information data in a short time.

 Since secondary data is used for analysis it is hardly possible to find out
any material information which they did not discuss or trying to manipulate
the quality.
 It is very difficult to evaluate the performance of the project which is
doing different types of business.
 The major limitation of the study is shortage of time and the limit of
range.

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MISSION

Being a part of our country with jute works, we are trying to upgrade the socio-
economic condition of poverty stricken rural destitute woman, the organization
has its well- defined mission, vision and philosophy, so we are trying to
establish socio-economic dignity of the disadvantaged and neglected people of
the society specially woman in Bangladesh.
 Handicrafts program on jute bags
 Woman entrepreneurship development program,
 Development project

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VISION

In keeping with the vision and philosophy to be truly strategic business partner to
customers, our business has made every effort to be involved at all levels of the
business process. The design and product development team is based with a
dedicated sampling facility for allowing our cooperation to assist customers in
their product for the market. It is our commitment to cut emissions of “Green
house” gases by at least 20% by the year 2020, and a promise to take the lead in
the international negotiations to adopt even more ambitious target. In short
business strategy is to be simply fast and efficient. Goal of one of the divisions of
our corporation the jute made product division is to become the preferred partner
for sourcing high quality jute products from Bangladesh. The jute bag division
has the potential to make an important contribution to the nations growing jute
export sector. We want to establish a self reliant and gender balance society.

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MANAGEMENT ASPECTS

In the whole world now this day’s environmental pollution is one of the most
talked of topics. Today’s people are being conscious about environmental
products in the industrial world. Especially European countries are promoting
green campaign and trying to increase the awareness among the whole people
about the green world. By this way to support these countries with the most
environmental friendly natural fiber, the idea of “Jute bag exporting” has come
to our entrepreneur’s mind. Moreover the higher position of jute production also
shows the light for this business plan.

OBJECTIVES

Behind this business plan there are so many objectives. Among those the most
important & hitting reasons are-

 To promote green campaign.

 Create new exporters & provide all assistance to existing exporters &
develop a Business friendly attitude
 Give support to other countries of the world with the environment
friendly jute product.
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  Increasing foreign currency for our country.
 National economic growth.
 Facilitate & co ordinate the buyers visit to Bangladesh.
 Product capacity building of export related institutions like P.B.
 Good using of potential jute materials.
 Develop expert manpower on a trade.

PROMOTERS
The promoters of this business plan are highly qualified. The details of our main
promoters are:

1. MD.Shah Wali Ullah. He has 7 years experience on this business. He is

involved with another 2 groups. He is very energetic person. His excellent job
qualification and experiences help us to make administrational policy. He is
playing a most important role by taking most honorable position of managing
director of this business.

2. Afrin Akter, MBA. This wonderful lady has a charming experience of 5 years in
this job regiment. She is helping us in making administrational job policy.

3. Dilruba Aziz, senior executive. She has 3 years experienced job holder. In this
site she’s providing us by sharing her method and techniques in operation parts.

SHARE HOLDING OF THE OWNER

Name Percentage of the Share

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 holders
MD.SHAH WALI ULLAH 30%
ARFIN AKTER 30%
DILRUBA AZIZ 20%
ZAHEEN CHOUDHURY 20%

SUMMERY OF QUALIFICATION
Name Designation Age Educational Experience Solvency
qualification
Md.Shah Wali MD 44 MBA, PHD on 7 years solvent
Ullah marketing
research
Afrin Akter MD 42 MBA, Finance 5 years solvent
Dilruba Aziz Senior 35 MBA,Finance. 3 years solvent
executive Researching on
jute product
Zaheen G.M 32 MBA, 2 years solvent
Choudhury Management
A.K.M Ahsan Executive 30 Masters in 2 years solvent
Ullah marketing

CREDIBILITY
 We are ideally placed to offer you the best quality and best price with
timely delivery from our huge alliance of reliable and trust worthy
fabric manufactures and exporters.

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  We specialize in areas of product development production & timely
deliveries, online & post production inspections, co-ordination &
communication.
 It is a concern run by highly professional and experienced owners
ensuring you all the time dimensions of quality.
 Our valued expertise and experience in sourcing & technical fields for
over a decade have helped us giving an in-depth understanding of
technical know how and the state of the art technology associated with
garments and textiles.
 We have fully computerized system of purchase and follow up of
materials; order and production follow up, induction Audits analyzed
to ensure accuracy.
 We deal directly with buyers and we understand the needs of our
clients.
 Serving client successfully is our UTMOST MOTTO.
 Customer satisfaction is fully guaranteed.

JUTE - COUNTRY PERSPECTIVES

Jute is a part of our culture. Bangladesh is the second highest country of the
world in production of jute. This country has been blessed with the favorable
climate and potentials to be the largest grower and exporter of the best quality
jute, the golden fiber. This gives Bangladesh advantage over other jute growers
any where in the world. Bangladesh is long experience expertise and reputation
for quality and timely shipment. Bangladesh has earned an international
eminence as the principle source of high quality jute product.

Jute and jute product import many country, there are; Germany, Singapore,
China, Italy, Brazil and the USA, export earning from the sector during 2006-2007
was about 769 million taka. So it is increasing our foreign revenue, and the main
hope of this, our national economic growth rate is developing. PAGE- 1
The jute industry in the public sector, by virtue of its location in East Pakistan,
becomes the property of Bangladesh after independence in 1971. Pakistani mill
owners (about 68% of the total loom strength) left the country, leaving the
industry in disarray. Abandoned jute mills were subject to heavy looting. The new
government of Bangladesh had to take up the responsibility of rebuilding the
industry. By a nationalization order, about 85% of industries, including all jute
mills, were nationalized.

Bangladesh Jute Mills Corporation (BJMC) was formed to look after all the 73
jute mills having 23,836 looms at that time. At one stage the number of jute mils
under the jurisdiction of BJMC went up to 78. BJMC had to resurrect the industry
from a ruined position. Immediately after liberation, it becomes very difficult to
solve problem of financial hardship of the jute industry because financial hardship
of the jute industry were not working well. Frequent power failures and power
stoppages also compelled the industry to suffer heavy losses in terms of
production and foreign exchange earnings. In addition to these problems, the
short supply of spares, labor unrest, wastage in production etc. also shook the
industry severely.

For jute industry of Bangladesh, the first two years after liberation was the period
of reorganization. The government offered cash subsidy to the industry, which
amounted to Tk 200 million annually. The annual subsidy was reduced to 100
million since 1976-77. Thanks to this policy and periodic devaluation of currency,
Bangladesh could retain its position of a prime exporter of jute goods in the dollar
areas of export. The industry earned profit in 1979-80, when the subsidy was
withdrawn. By December 1979, BJMC had 77 jute mills, two carpet backing mills,
and two spare parts producing units. In 1980, six twine mills were disinvested to
the private sector. In June 1981, BJMC had 74 mills under its administration.
These mills had about 165,000 workers and 27,000 managerial and office staff.
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Denationalization of jute mills started in July 1982. The government ordered
BJMC to complete the process by 16 December 1982, but only 10 mills could be
handed over Bangladeshi owners by that time. The valuation process and
settlement of other organizational matters relating to handing over of the mills
took a long time. Among the jute mills owned by BJMC, 46 had satisfactory
financial performance in 1982-83, when their profit before contribution to national
exchequer was about Tk 240 million. The same mills incurred total losses about
Tk 430 million in the previous year. Jute mills incurred losses regularly over years
and external donor agencies pressed hard for denationalization. More and more
mills were put into the denationalization list. In 1999, BJMC had 33 mills. The
World Bank continued to work closely with the government to restructure the jute
sector, especially through denationalization, merger, dissolution, closure and
setting up of new units.

By 1998, BJMC had an accumulated loss of more then Tk28 billion and a debt of
more than TK 11 billion. Losses incurred by BJMC in 1997-98 were Tk 2.38
billion. Major features of the BJMC mills in that year were : total production
capacity – 451,707 tons; looms in operation-12,350; loom hours 59.3 million;
production per loom hour- 5.33 kg; baled production-312,000 tons; consumption
of raw jute-319,306 tons; local sales-29,000 tons; value of total sales (including
export bonus) – Tk 8.5 billion; production cost per ton- TK 30,349, wages paid to
workers – Tk 3.89 billion; salary paid to employees and executives- TK 881
million.

The performance of the private sector jute industry is also not encouraging;
PRIVATISATION itself has been very problematic and slow process. Resistance
from workers/employees of the mills and lengthy formalities forced the process to
be slow. In 1998, out of forty jute mills in the private sector, three were closed
and two lay off. The private sector jute mills run on a very low profile. Up to
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December 1999, the private sector jute mills have accumulated losses of more
than Tk 12 billion.

The jute spinning mills in Bangladesh export nearly 100% of their production. In
1998, there were 41 spinning mills, which had an annual production capacity of
about 195,000 tons. Products of these mills are yarn and twine, which are used
the world over, for carpet weaving, wall covering, jute webbing, fabrics for
shopping bags, caps, handicrafts, canvas, decorative fabrics, laminated cloth,
and safety fuse for explosives. These mills employ about 25,000 people and the
employers have their own trade body named Bangladesh Jute Spinners
Association.

After a virtual monopoly of over a century, jute products confronted tuff

competition from synthetic substitutions commonly known as polypropylene
during the 1970s. Polypropylene is preferred as packing material since it is much
cheaper, easy to manufacture, highly durable, and tight in weight. After losing the
market to polypropylene, many jute mills in western countries were closed down
and the jute industry of subcontinent was also put into deep trouble.

LEGAL FORM OF BUSINESS

As “M/S Green World Corporation” is a partnership business. So according to the

partnership rule of 1932 of Bangladesh we made a deed which is accepted by all
partners and legal organization. Our legal advertiser Mr. Farhad Zaman, lawyer,
has completed all legal statement.

LEGAL REQUIREMENTS

MANUFACTURING LICENSE: There is a rigorous licensing requirement for

manufacturing food grade jute bags. The directorate of jute of the government of
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the people’s republic of Bangladesh issues manufacturing license for producing
food grade jute bags. The licensing involves a critical assessment of the
manufactures processing capability
Infrastructure and other related conditions. At present six manufacture units of
BJBC are licensed to produce food grade jute bags.

ORGANIZATIONAL STRUCTURE

“Serving client successfully” is our utmost motto. Keeping the motto in our mind
we firmly believe it is our responsibility to serve our customer successfully. To
carry out all our job responsibilities effectively and efficiently, we have a well
designed organizational structure in right position.

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 MANAGING
DIRECTOR

OPERATIONAL TECHNICAL
DORECTOR DIRECTOR

MARCHAN- SAMPLING CUSTOMER FINANCE & ADMINISTRATION PETTERN & QUALITY

DISING CO- RELATION & CORPORATE & HUMAN DESIGN CONTROL
DEPARTMENT ORDINATOR COMMUNICATI RELATION RESOURCE DEPARTMENT & ASSURANCE
-ON DEPARTMENT DEPARTMENT DEPARTMENT
DEPARTMENT
SENIOR
MANAGER EXECUTIV SENIOR
SENIOR SENIOR E MANAGER HEAD MANAGER
MANAGER MANAGER DIRECTOR DESIGNER
MARCHANDIS
E
EXECUTIVE 1 FINANCE SENIOR
SAMPLING CUSTOMER EXECUTIV ADMIN.
EXECUTIVE & EXECUTIVE EXECUTIVE
1 E EXECUTIV
COMMUNICA 1
E DESIGNER 1
MARCHANDIS TI-ON
E EXECUTIVE CORPORATE
EXECUTIVE 2 1
SAMPLING EXECUTIVE
EXECUTIVE EXECUTIVE
2
EXECUTIVE
CUSTOMER & DESIGNER 2 2
COMMUNICATI
-ON
EXECUTIVE 2

AUDITING FARM

INTERNAL AUDITING FARM

Our legal documents, deeds & all legal formation have been audited by our
internal audit Mr.Abdur Rahim, who is a qualified CA, having 5years experiences.
He’d experienced hand all legal documents Completed all settlements monthly.
EXTERNAL AUDITING FARM
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“Shadhan Das & Co.” situated at Dilkusha branch is agreed to audit our
organization yearly. This auditing farm will serve there experienced help for
auditing all legal documents.

TECHNICAL ASPECTS

GLOSSARY OF JUTE

Botanical name of jute [(joot) n] is carchorus capsularis and carchorus olitorius

which is a natural fiber obtained from jute plants that falls into Linden family. Jute

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is called “Yute” in Spanish. Jute is long, strong and typically golden in color that
has many uses in the world. It is a highly hygroscope natural fiber.

Bangladesh White and Bangladesh Tossa are two main category of raw jute.
Each category has sub-categories graded by the quality of raw jute. Jute
harvested in Bangladesh is the strongest in the world as well as richest in color.
So jute made bags can be easily produced in our country at a cheap rate with
great quality.

LEGEND JUTE GROWING AREAS AND TYPES

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Northern Jute (White and Tossa)

Soft District Jute (White and)

Jat Jute (White and Tossa)

District Jute (White and Tossa)

Hard District Jute (White and Tossa Tossa)

JUTE GROWING AREAS

OF BANGLADE

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 WOMEN PRODUCING JUTE BAG’S RAW MATERIALS

PRODUCT INTRODUCTION

Jute has various inherent characteristics like, high tensile strength, low
extensibility, long durability, fire and heat resistance, silkiness, luster and long
staple length. Bangladesh is one of the largest jute producers in the world
producing around 20% of the world production. Our country has been blessed
with the favorable climate and the potentials to be the largest grower and
exporter of the best quality jute, the golden fiber. This gives us advantages over
other jute growers any where in the world. So, Bangladesh can be thePAGE- 1
powerful
source to produce jute made products. For having natural flexibility, jute made
products can easily be used by the people of the developed countries who are
trying to save their environment by avoiding poly bags. Our business plan is to be
the part of being a protest against using poly bags. Jute made products such as
bags, show pieces, toys, wall hanging, basket, mat lamp shade; bell and so on
can be produced in our country at a cheap rate. In the developed countries,
people are quiet aware about environment friendly products. So jute made
products can be exported from our country to be a part of “Green Campaign”.
Besides jute made bags have enviable market in well developed countries.
There are many kinds of jute bags produced in our country. These bags are
made by the best raw materials. The designs of these bags are done very
smoothly. There are many kinds of shopping bags. These are classified by their
category, size and design.
 Shopping Bags
 Promotional / Advertising Bags
 Wine Bottle Bags
 Grocery Bags
 Carrier Bags
 Gift Bags
 Special Bags for any specific occasion like Christmas, New Year etc
 And many other type of bags as per designs and specifications of our
customers.

WINE BOTTLE BAGS

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 1 2
3

WINE BOTTLE BAGS

4 5 6

WINE BOTTLE BAGS

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 7 8 9

WINE BOTTLE BAGS

10 11 12

SHOPPING BAGS
1 2 3

SHOPPING BAGS
4 5
6

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 SHOPPING BAGS
7 8 9

SHOPPING BAGS
10 11 12

SHOPPING BAGS

13 14 15
16 PAGE- 1
 SHOPPING BAGS

17 18 19 20

SHOPPING BAGS
21 22
23

GIFT BAGS
1 2 3
4 PAGE- 1
 GIFT BAGS
5 6 7
8

LADIES BAGS
1 2 3
4

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 LADIES BAGS
5 6 7
8

LADIES BAGS
9 10

DESIGN BAGS

1 2 3
4

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 DESIGN BAGS
5 6 7 8

DESIGN BAGS

9 10 11 12

DESIGN BAGS

13 14 15
16

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 PROMOTIONAL BAGS
1 2 3
4

PROMOTIONAL BAGS

5 6 7
8

PROMOTIONAL BAGS

9 10 11
12 PAGE- 1
 NET BAGS
1 2 3
4

CASUAL BAGS
1 2 3

CASUAL BAGS
4 5
6 PAGE- 1
TIFFIN CARRRIER BAG

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 KIT BAG

COIN BAG OFFICE FILE BAG

HANDLE STYLE

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TESTING CERTIFICATION

The ministry of jute has designated five laboratories for testing and certifying of
food grade jute bags. Their laboratories are:
 Bangladesh council of scientific and industrial research (BCSIR)
 Bangladesh jute research institute (BJRI)
 Bangladesh standard and testing institute (BSTI)
 Directorate of jute
 SGS (Bangladesh) limited

These laboratories independently collect sample of food grade jute bags from
different manufactures test these for the conformity with IJO standard and issue
certificates accordingly. These tests are done following the IJO 98/01 reference
as mentioned bellow:
 Method for the determination of added oil content of jute yarn, rove and
fabric British standard 3845:1990.
 International Union of Pure and Applied Chemistry (IUPAC) 2.401.
 Sacks for the transport of food aid, European standard EN 766

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ECO FRIENDLY JUTE BAGS

Jute bags’ have been the most environment-friendly natural fiber because of its
inherent unique properties has counts of advantages over other man-made
artificial polymer fiber products. Under stress jute extends only 0.5% to its stable
form and so gives wonderful dimensional stability.
The hairy surface of jute fabric gives it a capacity to grip any surface it comes in
contact with. Jute is not only a major textile fiber, but it is also a raw material for
nontraditional and value-added products helping in environment protection and
maintaining ecological balance.
The ignition temperature of jute is 193c. It thus remains very stable up to near
ignition point. So, jute is obviously harmless for the environment and it gets rotten
easily by nature. In high developed countries people are trying to avoid poly bags
during shopping. They prefer environment-friendly bags such as jute bags. So,
jute bags have a good market internationally.

ADVANTAGES OF USING JUTE BAGS

With some strong technical points we are exporting jute bags:
 Jute bags are very silky, strong and low extensible.
 It gets rotten easily by nature without any harm.
 Jute bags are fire and heat resistant.
 It is long durable and high flexible to use.
 Jute bags can be used easily and freely during heavy shopping.
 Jute bags prevent seepage loss of contents during transportation and
allow it to be re-used over and again.
 When it is burnt, it emits the same fume as burning wood as we know,
is nothing dangerous.

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  Jute being hygroscopic and auriferous permits normal breathing and
humidity to the contents and so ensures their storage without
deterioration.
 Hooks may be used freely and easily on jute bags during handling as
its innate properties cover up the pierced holes immediately after.
 It has no adverse effect on human body and nature.

The most important advantage of exporting jute bags is to be the part of “Green
Campaign” of developed countries that is working for using environment-friendly
products.

EXPORT POLICY
Increased production and massive expansion o commerce is one of the main
means of local resource generation. Employment opportunities can be created in
a populous country like ours with the promotion of export. This employment will
pave the way of increased savings and investments ensure capital flow, solve
unemployment problems and eradicate poverty. In the field of commerce the
main task of the government of Bangladesh is to make economy strong and
dynamic enabling it to face the challenges of rapidly changing world trade
system.

In order to promote export, scopes should be there to pay prices both under LC
and contractual agreements. Besides the existing VAT and duty structures should
be made time befitting and realistic. Moreover now products have to be added in
the export basket.

EXPORT PROCEDURE
PAGE- 1
1. OBTAINING EXPORT LICENSE
To obtain export license the exporter needs to collect the following documents for
submitting to the concerned government trade body:
 original export license form
 enrolment certification
 commercial invoice
 non-negotiable bill of lading
 shipping bill

2. CONTACTING WITH THE CUSTOMER AND SENDING

COMMERCIAL INVOICE
In this part the exporter will send “commercial invoice” describing the quality, unit
price, total price, quantity, terms of payment etc. to the importer. Here the
commercial invoice is used as a man of communication.

3. RECEIVING FORMAL ORDER FROM THE CUSTOMER

On the basis of commercial invoice which is sent by the exporter, the importer will
give a formal order.

4. OPENING BANK ACCOUNT

As all the transaction related with foreign trade is done through bank both
exporter and importer are required to open a bank account with a scheduled
bank.
To open the bank account following documents should be submitted:
 An application in the prescribe form.
 Two copies of passport size photograph
 Attested copies of the trade license

PAGE- 1
  A copy of resolution of meeting of the board of directors regarding
decisions for opening bank account and the delegation of power to
operate bank account.
5. OPENING EXPORT L/C
The following documents are essential to open export L/C:
 L/c application form
 LCA form (letter of credit authorization form)
 IMP form
 Agreement form
 Changes documents
 Guarantee form
After filling the above mentioned documents the following documents should be
submitted to the bank:
 Income tax declaration
 Trade license
 Export license
 Membership certificate
 Memorandum of association
 Registered deed (in case of partnership form)
 Resolution
 Photograph
 Insurance cover note
 A copy of intend Performa invoice

6. RECEIVING IMPORTERS BANK’S L/C

After receiving L/C from the importer needs to check the following things:
 Correct name and address of the buyer
 Cost of goods as per Performa invoice
 Payment clause PAGE- 1
  Name of the loading port and the port of destination
 Name of the buyers bank and its address
 Marine insurance cover note
 Other related matter

7. OBTAINING CUSTOMS CLEARANCE

Before loading goods on the ship the exporter needs to obtain custom clearance
by submitting the following documents to the custom authority:
 Shipping bill of entry
 Export l/c
 Invoice
 Packing list

8. SHIPMENTS OF GOODS
After getting customs clearance and pre-shipment inspection the exporter needs
to load the goods on the ship and obtain “bill of lading”

9. PREPARING EXPORT DOCUMENTS & SENDING TO THE

EXPORTERS’ BANK
After the accomplishment of shipment of exporters goods the following
documents should be prepared. All the documents must be prepared according
to the term o L/C:
 Bill of exchange
 Commercial invoice
 Packing list
 Beneficiary’s statement
 Quota statement (in case of government industry)
 Other related documents

10. NEGOTIATION OF DOCUMENTS

PAGE- 1
The exporter needs to submit the documents to the bank which should be
prepared as per as L/C terms for negotiation.
The following documents are needed for negotiation:
 Application form to be supplied by the bank.
 Bill of exchange signed by the account holders
 Commercial invoice with signature
 Original bill of lading has to be submitted as per export l/c
 Other essential documents
11. RECEIVING CUSTOM’S ACCEPTANCE AND REALIZING
EXPORT PROCEEDS
After shipment of goods the exporter’s bank will send the documents to the
importer’s bank with in two of three days. On receiving the documents the
importer will arrange the payment to the exporter’s bank.

MARKETING ASPECT

01. CURRENT MARKET SCENARIO IN BANGLADESH

The most environmental friendly natural fiber due to inherent unique properties
has counts of advantages over man made fiber products. The climate of
Bangladesh permits abundant growth of the best quality jute. It is a versatile raw
material from traditional uses and its uses continues despite challenges from
synthetic substitutes. In market, jute and jute based products are put to a wide
range of uses. It has a great demand on several needs. It has been PAGE-
used as
1a
raw material of packaging. Before being used as a commercial commodity it is
used in different parts of the world to make household and farm implements such
as ropes, handmade clothes, wall hangings etc. In Bangladesh sacks made of
jute are commonly used. Bangladesh exports “Raw Jute” and “Jute Goods” which
include all types of grain bags, sugar bags, cocoa-bags, burlap-bags. Because
climate of our country is very conducive for cultivation of jute plants, 80% of the
total raw jute and jute goods are produced here. We are interested to export
qualitative jute bags because it has earned reputation at home and abroad for its
quality and timely shipment. We are on the way to earn name and fame with hard
work, dedication, innovative activities and relentless efforts to do better every day
by the present market. We are working as a sourcing agent for jute and jute
goods with gunny bags, rice bags, coffee bags, flour bags, casual bags,
shopping bags, wine bags, ladies fashion bags, bottle bags, hand made bags,
school bags.

For the development and diversification of jute products and integrated “Plan and
action” will be taking to increase the productivity of the jute industry by activities.
To create markets, co-operation will be provided to entrepreneurs for participation
in international fairs and exhibition. Our government has established design
sector.

Many of the UK’s leading retailers have realized the attractive benefits of using
jute bags and understand their consumers want an environment-friendly
alternative to the damaging single use plastic carrier. The jute shopper just
makes sense.

Sainsbury: Sainsbury introduced jute bags during organic fortnight as part of a

high profile campaign to promote their so organic range of fresh fruit and
vegetables. The bag design had an earthy natural look to enforce the organic fell
but had the strong soft handless for comfort. Customers who purchased 5 five
PAGE- 1
pieces from the fresh fruit, vegetables of salad. So organic range received a free
jute bag. Once the promotion ended the jute begs then went on general sale
through out the stores.
ASDA: ASDA have introduced the “chose to reuse” jute bag collection. The bags
were introduced as part of the fair trade fortnight.
TESCO: Tesco have designed a multi-purpose bag as part of their bag for the
campaign. A ladybird design has been created jute bag and rolled out to all at
their stores.
Booths: Booths the north of England’s leading food retailer introduced a
burgundy 6 bottle wine jute bag with removable as part of their award winning
wins department. Booths chose to embroider their logo onto the bag. 25 pence
from the sale of every bag in donated towards booths nominated charity of the
year.
UNICORN GROCERRY: South Manchester based co-operative grocery store
unicorn grocery has created a wonderful collection of jute bags over the season.
Unicorn groceries have utilized the bags to promote positive messages reflecting
their principles from “shop local, eat your greens and make do and mend” to
promoting seasonal British produce “Brussels sprouts and parsnips on tour”. As a
result of their changing innovative designs, the bags have gained a cult status.
TKMAXXX: a successful “bag for life” pilot scheme in forty tkmaxxx stores has
seen the distribution roll out to all of their stores.
TUSSAUDS: The tussauds group the UK’s number one visitor attraction
business has created their second collection of jute bags for retail in their parks
shops. These original designs in corporate different fabrics and use embellishes
as a finishing touch for a truly creative design.

02. ROLE PLAYED BY THE GOVERNMENT

As jute is the cash crop of Bangladesh, the government is playing vital role for
the progress of jute industry. By enhancing jute industry we can envelop the
unemployment problem. Now-a-days government is providing financial help to
PAGE- 1
the various segment of this industry. We earn huge foreign currency exporting
jute made products. As in our country manpower is available and cheap we can
develop this industry. If we take modern technology to bring out different kinds of
jute-made bags, we will be profitable by selling these. Selling and exporting these
products government will be strong by getting foreign currency. We should give
great concern on this industry.

03. SITUATION ANALYSIS

(A) PRODUCT SITUATION
We are engaged in export of a large variety of jute shopping bags, promotional
bags, bottle and wine bags, gift bags and so on with international designs and
demands.
These jute bags can be made with different colors and handle of bamboo, cane
rope etc. the printing of these bags are done with utmost care so that it can
attract the buyer’s attention. Not only those, these bags are classified by its
shape, color, design, handles and the way of using.

(B) COMPETITIVE SITUATION

On the analysis of competitive part we realized that India is getting the market of
jute made products and we are loosing. This is because India is very competitive
and they have total power to ensure their goal. Environmental friendly products
are getting popular world wide, but we don’t have enough stamina and vision to
promote it. We don’t conduct enough research to enhance the capability to
produce such goods. So in comparison they have captured our market. India is
successful in this sector but Bangladesh is unable to achieve the same. We may
have feelings for the jute sector, but we can’t help us to become competitive and
without this there is no future in this industry. It is mentioned that the wage of jute
mill workers in India is almost double the amount paid to jute mill workers in
Bangladesh. This means we are not producing jute goods at a competitive price.

PAGE- 1
The industry of jute in India is flourishing and our jute industry is dying. So to
compete with them, our government should formulate new jute policy.

(C) MACRO ECONOMIC SITUATION

We the suppliers, marketing intermediaries, customers, competitors, and publics
all operate in a macro-environment of forces and trends that shape opportunities
and pose threats. In the arena, corporation and customers are increasingly
affected by global forces.
 Our communication and financial transactions leading to the rapid
growth of world trade by jute.
 The economic power of Bangladesh is rising in the market.
 The growth of global brands in jute bags is very significant.
 The increasing number of cross-border corporate, strategic alliances is
one of the most important elements of macro economic situation.
 The result of gradual opening of major new markets is playing a vital
rule in our business.
 The rapid dissemination of global lifestyles, because they are showing
interest on various types of jute bags.

04. MARKET SUMMARY

Jute industry of Bangladesh the first two years after liberation was the period of
re-organization. The government offered cash subsidy of the industry, which
amount to taka 200 million annually. The annual cash subsidy was reduced to
100 million since 1976-1977. Thanks to this policy and periodic devaluation of
currency. Bangladesh could retain its position of a prime exporter of jute goods in
the dollar areas of export. The industry earned profit in 1979-1980 when the
subsidy was withdrawn. By December 1979, BJMC had 77 jute mills. In 1981,
BJMC had 74 mills under its administration. More and more mills were put into
the denationalization list till 1999. Productions of these mills are yarn twine,
which are used the world over. After a virtual monopoly of over a century, jute
PAGE- 1
products got a tough competition from synthetic substitutes commonly known as
polypropylene during the 1970s. It was a cheaper product In that time. After
losing the market to polypropylene, many jute mills in western countries were
closed down and the jute industry of the subcontinent was also put into deep
trouble. Nevertheless, high cost of jute goods compared to synthetics led jute
goods users to turn to synthetics. Recently people are conscious about
environmental health begun to be appreciated of jute products. Many countries
like Belgium, Australia, New Zealand, and UK are showing their demands on
jute bags. So our enterprise moves with them. Many private sector entrepreneurs
are providing their service for exporting jute made products.

05. SWOT ANALYSIS

STRENGTH
Bangladesh jute mills corporation (BJMC) was formed to manage and look after
all the 73 jute mills having 23,836 looms at the time. At one stage the number of
jute mills under the jurisdiction of BJMC went up to 78. Many entrepreneurs are
interested to invest on this sector. The World Bank continued to work closure with
the government to restructure the jute sector, especially through
denationalization merger dissolution, closure and setting up of new units. It’s a
land of enormous beauty, hundreds serpentine rivers, fertile land and it creates
an unforgettable impression of a land of peace. So by producing the finest quality
natural jute fiber, we are providing an extra advantage in manufacturing food
grade jute bags by using natural fiber. We can research and establish special
analytical facilities for testing the food grade bags during manufacturing. Our
country is naturally blessed with such fertile land. We should do its best use and
help our economy grow. Almost 8% of the total export comes from jute exporting.
So we must find some effective way to develop it more.

WEAKNESS
PAGE- 1
Jute bags produced from the natural fiber. Jute is traditionally being used in
packaging food grade materials. But the organizers are not interested to export
these things. The two associations are BJMC and BJMA. There are very few
private corporations like Janata jute mills, Pubali jute mills, Abdul Malek jute mills,
Golden fiber jute mills. So our main weakness is the entrepreneurs who are not
financially able to start this type of business, because this exporting business
needs a large amount of capital. It is very important to fulfill the demand of
clients. IT becomes very difficult to solve problem of financial hardship of the jute
industry because financial institutions are not working well. On the other hand,
our competitors are strong enough to lead the market like India. Frequent power
failures and power stoppages also compelled the industry to suffer heavy losses
in terms of production and foreign exchange earnings.

MAJOR PROBLEMS ARE:

 Increasing in the cost of production while the sales prices of jute
goods remain at the same level or even decline.
 Accumulation of huge losses and consequently of huge debts.
 Decline in exports of jute goods.
 Electricity failures.
 Excessive wastage.
 Labor unrest.
 Poor management that affects productivity.
 Frequent changes in government policies.

OPPORTUNITY
Jute is a unique gift of nature; because of this we are trying not to contaminate
our jute with any additives hazardous to mankind. We may encourage our
farmers to harvest raw material jute fiber and we are working to process it in
PAGE- 1 a
fully organic manner. Our best opportunity is that we are having as a country
which is blessed with such fertile land. The production of jute is very favorable
and the cultivation system is very easy. So publicizing jute’s ecologically benign
qualities; that it is biodegradable, photodegradable, non-plastic, anionic, and
acidic, absorbent can be utilized for the production of diversified products. It is a
source of employing local jobless men and women and grooms them both to be a
skilled workforce. So we are having a great opportunity to use them in a perfect
way.

THREAT
There are so many obstacles in this business. It may prove as a threat. These
are given below.
 It is said that 30 percent loss in the jute sector is caused by power
shortage and another 30 percent is attributed to interest charges.
 Coordinated initiative can solve the problem of the jute sector. But the
details of this supposed initiative are not ever made known.
 As these mills are the sources of livelihood of many people. Even if these
mills are closed, the government will have to pay to many agencies to
settle their claims.
 Farmers lost interest in jute for not getting their fair price because of the
open market economy policy.
 Now India is getting the market of jute goods and Bangladesh is losing.
 There is no chance of improving the operational efficiency of public sector
mills.
 There is a problem of excess labor in jute mills. These excess labors can
not be diminished for political reasons.

06. STP ANALYSIS

SEGMENTATION
PAGE- 1
A market aggregation strategy means, in effect that little if any subdivision of the
market is applied our firm is exporting a single product that is jute bag and
offering it to all consumers with marketing program. It is nothing but a mass
marketing. Segments must be identifiable. So that the marketer can determine

which consumers belong to a segment and which do not .

SEGMENTATION MAJOR CONSUMERS CATEGORY

SEGMENTATION OF MARKET OF JUTE
BAGS

GEOGRAPHIC Region Western, All kinds of jute

Europe bags
Density high All kinds of jute
bags
climate cold All kinds of jute
bags
DEMOGRAPHIC Age 6 to 20 School bags,
bottle bags
21 - 49 Fashion bag,
mobile bag
50 - 69 Travel bag ,
normal bag
All ages Shopping
bags, purses
gender Male and All kinds of
female bags
income People of all Jute made
income bags
Education School, high School bags,
school, college bags
college,
graduate
Social class Lower, All kinds of jute
working class, bags
middle class,
upper middle,
upper class.
PSYCHOGRAPHIC personality Compulsive, All kinds of jute
authoritarian, bags
ambitious.
PAGE- 1
 BEHAVIORAL benefits Quality, All kinds of jute
service, bags
economy
User status First time user, All kinds of jute
regular user, bags
potential user.
Readiness stage Aware, All kinds of jute
interested, bags
informed,
desirous

TARGET
Many strategies are available in the process of marketing products.
We have developed our specific goals. We have turned objectives into
measurable goals which is facilitates management planning, implementation and
controlling. Our targets with our jute bags are given bellow:
 Our first target is to introduce this type of eco-friendly jute bags to the
people and increase its use.
 We want to increase the return on investment by 15 percent within 3
years.
 We will invest our last effort on the promotion of our jute bags by
developing its designs and looks.
 We are exporting these jute bags with the demand of consumers’ lifestyle,
personalities and motivations.
 The most important objective of our business is to stop the use of poly-
bags not only for shopping or carrying things but also for many various
purposes.

POSITIONING

PAGE- 1
Positioning analysis is examining the position of our firm relative to its
competition. It is the perception created in our customer’s mind regarding the
nature of our business firm of jute bags exporting at its product related to the
competition. Our export quality jute bags, pricing, method of the distribution, our
image, our communication tactics, and other factors has created our position.
Such positioning strategies are:
 Attribute positioning: our business position itself on an attribute, which
is jute bags and its values.
 Benefit positioning: jute bags are positioned as the leader in a certain
benefit.
 Use positioning: we are positioning the jute bags as best for some use
of application.
 Competitor positioning: our product claims to be better in many ways
than any competitor. Our bags are qualitative and beautifully designed.
 Category positioning: our product is positioned as the leader in bags
category. We are working with different types of bags such as souvenir
bags, occasional bags, shopping bags, school or college bags, bottle
bags, carrier bags, gift bags and so on.
 Price positioning: our bags are positioned as offering the best value
with the best quality.

07. MARKETING MIX ANALYSIS

(A) PRODUCT DISTRIBUTION

As this business plan we have developed this jute made product for the market,
which can be sold in a foreign country. We have successfully taken our product to
foreign market by promoting it. But usually products have to be altered to meet
conditions in a foreign market. We have modified our existing products to fit the
needs of foreign country. We can develop a new product for the other country at
the same time we can sell the current product to other countries. As the world’s
PAGE- 1
largest manufacturer and exporters of jute products BJMC took up the issue that
jute can be a very usable product in customers mind. So we the agent are mainly
focusing the jute made bags which can be used in different purposes. Ours is a
quality natural fiber. We are going to export sacking bags which has a great
demand in different purposes. Like twill bags, double war bags, bottle bags,
shopping bags, wine bags, mobile bags, coin bags, fashion bags etc. There are
also some normal jute fabric bags treated with anti-rot chemicals to impart extra
longevity for use in adverse conditions.

(B) DISTRIBUTION CHANNEL

The task of providing products in foreign nations often presents challenges and
problems. Like the other international business firms we will attempt to move and
sell goods and provide service through existing transportation system. Adequate
distribution systems do not exist, so our firm must be develop ways to get its
products to the customers. We will use trucks for moving products from the
manufacturers or sources to us. And also after packing, it will help us to take the
products for shipment to export.

(D)PRICING
The price of the product is usually different in domestic and foreign markets. As
ours is an export-oriented business, we will cost the product with the foreign
trade, as a result it will price higher from the domestic selling rate. Exchange rate
can also influence the price of the foreign goods. We have decided and fixed the
prices very carefully because selling surplus products in a foreign country at a
lower price than in the country of origin is called the “Dumping”. So by
considering all these objectives, we have fixed our products prices. These are
given bellow:

PRICE LIST
PAGE- 1
 PRICE
CATAGORIES SIZE (IN TAKA)
Shopping bag 14" x 18" 130
Fashion bag 10" x 7" 490
College bag 13" x 15" 470
School bag 16"X 15" 420
Mobile bag 3" X5" 70
Vanity bag 9.5"X 4.5" 160
Lunch bag 10" X7" 130
Purse 6.5" X3.5" 60
Coin bag 3.5" X2.5" 40
Bottle bag 14.5" 6" 75
Occasional bag As order 120
Souvenir bag As order 100
Crewel bag 5" X6.5" 70
Drawstring bag 15" X17" 85
Spider bag 13" X17' 60
Shoulder bag 7" X8" 90
Wine bag 13"X 15.5" 160
Gift bag As order 170
(E) Grocery bag As order 45
PROMOTION

Jute has been the most environment friendly natural fabric because of its
inherent unique properties has counts of advantages over other man made
artificial polymer products. So we want to spread this massage worldwide to
inform people as well as customers about this biodegradable fiber. We think that
thinking globally will be an integral part pf a winning firm’s compete and win
market shares in Asia, Europe, and beyond. As an Asian country we are blessed
with fertile land, which is very good to cultivate jute. On the other hand our
environment is getting very poisonous for poly bags. Using jute goods means
doing business without making harm to economy and increasing work force. So
we are on the way to protecting environment for a natural world of ours. To let
people know about the idea we will use some advertising media like radio for our
PAGE- 1
country and we may use the very effective media which is direct mailing nearly
19% of all advertising expenditures goes for direct mail.

08. CORPORATE SOCIAL RESPONSIBILITIES

CUSTOMER
CUSTOMER

EMPLOYEE
OWNER BUSINES EMPLOYEE
OWNER
S
ACTIVITIE
S
ENVIRONMENT
ENVIRONMENT

CUSTOMER
The most beneficent part of this project is the customer. We are introducing once
again a standard for the jute bags to be used in packaging of food grade
materials. We are promoting that the jute can ideally be used as bags in various
purposes and sacks for packing almost all kinds of agricultural products,
minerals, cement etc. it has no adverse effect on human body and the Mother
Nature as a whole. It is easy to carry and handle. It can be used several times
which is an important part of consumer satisfaction.

OWNER
As the world’s largest manufacture and exporter of jute made products, BJMC
took up the issue back in 1990 at the view of its responsibilities and commitment
of jute. As a supplier we have the opportunities with the manufacturer
PAGE-who
1
subscribes to the SAMI service and to the buyers who are going to buy our
products. At the same time we are having the honor to contribute in our
economy-reducing unemployment and also to increase the use of jute made
products through out the country. It is a foreign exporting agency; we are having
a handsome profit by exporting jute bags. At last but not the least, we are
involving ourselves and representing our country in front of the world in the
“Green Campaign”.

EMPLOYEE
So far we have focused on the demand side of the labor market. Labor supply
refers to the number of hours that the population desires to work in gainful
activities in our organization. We are offering a handsome salary as well as to the
official employees also. They work for long hours because each hour of work is
better paid. We have special bonus for our overtime workers. One of the
dramatic developments in recent decades has been the sharp influx of women
into the work force. At the same time more women have entered the labor force.
The participation of old women is increasing because our products can be made
at home easily. It can help the role of women as mothers, home makers and
workers. At the same time they are having the opportunity of contributing
themselves in avoiding the poly bags knowingly or unknowingly.

ENVIRONMENT
Jute made goods are absolutely pollution free products and merges friendly with
soil when wasted. “Green World Corporation” –a highly oriented and motivated
business professional corporation. Environment friendly jute made bags are
getting popularity worldwide. We are trying our effort to present it widely.

09. MARKETING STRATEGY

Adopting proper marketing strategy is one of the most important part of a
business plan. We are paying a great deal of attention to advertising research. It
PAGE- 1
is primarily relates to three critical decisions that have to be made to develop and
advertising program.
 Setting objectives.
 Selecting the massage.
 Choosing appropriate media.

After deciding upon the objectives, advertisers must decide our message. This is
difficult that it interacts with other controlled and uncontrolled variables that also
impact sales and profit. Our struggle in those objectives, we are trying to satisfy
with several requirements by mailing; including attracting attention, to make them
understand and to convince them. We are trying to increase their awareness by
sending the pictures of our jute bag products mentioning their own style and
purposes. We are promoting new products with a variety of experimental
designs. We are trying to introduce with our final customers on the use of jute
bags, so they may use this environment-friendly product. For increasing the
market demand we will develop prestige goods, discount on large selling,
improved service, distribution innovation intensive advertising promotion.
 Buyers should specify their expected products from the soft catalog to
request quotation. In case of custom products they must send their own
sample.
 Pricing will be offered upon buyer’s request.
 Pricing will be offered for bulk quantity only.
 In case of sample request, both the sample price and shipping charge
must be paid by the buyers at the initial stage of the business.
 Further packing and shipping information can be provided depending on
buyer’s request.
 Delivery load time will depend on order.
 Pricing will be offered on the basis of latest market trends which may vary
time to time.
10. ACTION PLAN PAGE- 1
The action plan of our business is to increase the use of jute made bags for all
types of foreign consumers, especially who are conscious about environment-
friendly products.

FINANCIAL PLAN
FIXED ASSET COST

TOTAL
DESCRIPTION TAKA TAKA
Building:
Office building 960000
Warehouse 40000
1000000

Equipment:
Packaging Machine 200000
Furniture 300000
Transport 300000
8000000

Total Fixed Asset Cost 1800000

Working capital requirements

DESCRIPTION TAKA TOTAL TAKA

Stock Goods 20,00,000
Work in Progress 5,00,000
Packaging 3,00,000
28,00,000

PAGE- 1
 COST OF PROJECT CALCULATION

AMOUNT
CAPITAL REQUIREMENT (TAKA) AMOUNT (TAKA)
Fixed Asset
Office building 1000000
Equipments 800000
Total fixed asset 1800000
Pre operating expenses 100000
Working capital
stock goods 2000000
work in progress 500000
packaging 300000
Total working capital 2800000
Total working requirement 4700000

FINANCING PLAN AND LOAN REQUIREMENT

PARTICULARS OWNER'S EQUITY LOAN TOTAL
Fixed capital
Building 1000000 1000000
Equipments 800000 800000
Pre operating expenses 100000 100000
Working capital 2800000 2800000
Total 1100000 3600000 4700000
Percent 23.39% 76.61% 100%

PAGE- 1
SECURITY FOR LOAN

Mr. Sha wali ullah has an existing land where his factor is situated. This has an
appraisal market value of taka 500000. In addition his father has five hectares of
untenanted land value at taka 50, 00,000. This land will be pledged against the
loan.

FINANCING PLAN AND LOAN REQUIREMENT

Our business partners have planed to contribute taka 11, 00,000 covering the
cost of the land, building and pre-operating expenses. A loan will be required for
the rest of the project cost.

PAGE- 1
 LOAN REPAYMENT SCHEDULE

CALCULATION OF INSTALLMENT
YEA PRINCIPAL AMOUNT INTEREST PRINCIPAL
R OUTSTANDING INSTALLMENT 10% REPAYMENT

1 36,00,000 9,49,117 3,60,000 5,89,117

2 30,10,883 9,49,117 3,01,088 6,48,029

3 23,62,854 9,49,117 2,36,285 7,12,832

4 16,50,022 9,49,117 1,65,002 7,84,115

5 8,65,907 9,49,117 86,590 8,62,527

PAGE- 1
 INCOME STATEMENT (ONE YEAR)

PARTICULARS AMOUNT AMOUNT

(TAKA) (TAKA)
Sales revenue (5000 X 12 Month X per 15000000
unit price 250 Tk.)
Less: cost of production/ COGS 11250000
Labor 700000
Overheads 1500000
Total Cost Of Production 13450000
Gross Profit 1550000
Less: Administration Expenses 100000
Selling Expense 60000
Total Operating Expense 160000
Operating Profit (EBIT) 1390000
Less: Financial Expenses (360000)
Depreciation (1000000+800000)/20 (90000)
Earning Before Tax (EBT) 940000
Less: provision for Taxation (NIL) ---------
Profit After Tax (PAT) 940000

PROJECTED INCOME STATEMENT

PARTICULARS YEAR-1 YEAR-2 YEAR-3 YEAR-4 YEAR-5
NO. OF SALES 60,000 66,000 72,000 84,000 96,000
SALES REVENUE 15000000 16500000 18000000 21000000 24000000
LESS: COST OF
PRODUCTION/COGS 11250000 12375000 13500000 15750000 18000000
LABOR 700000 700000 700000 700000 700000
OVERHEAD 1500000 1500000 1500000 1500000 1500000
TOTAL COST OF
PRODUCTION 13450000 14575000 15700000 17950000 20200000
GROSS PROFIT 1550000 1925000 2300000 3050000 3800000
LESS: ADMINISTRATION
EXPENSES 100000 100000 100000 100000
PAGE- 1 100000
 SELLING EXPENSES 60000 60000 60000 60000 60000
TOTAL OPERATING
EXPENSES 160000 160000 160000 160000 160000
OPERATING PROFIT (EBIT) 1390000 1765000 2140000 2890000 3640000
LESS: FINANCIAL EXPENSES 360000 360000 360000 360000 360000
DEPRICIATION 90000 90000 90000 90000 90000
EARNING BEFORE TAX (EBT) 940000 1315000 1690000 2440000 3190000
LESS:PROVISION FOR
TAXATION (NIL) NIL NIL NIL NIL NIL
PROFIT AFTER TAX (PAT) 940000 1315000 1690000 2440000 3190000

PAGE- 1
PAGE- 1