Project Feasibility Study

RAJENDRA RESORT

Prepared By:

MD. MAHMUDUR RAHMAN OVI

Chief Financial Consultant
Cell: 01977-289026, 01912-289026
Email: ovifin@gmail.com
 Feasibility Study report on Simco Rajendra Resort

ABOUT US

MRO Financial Consultants (MFC) is a trusted name operating since 2013 involved with various industrial
operations and support services for various businesses, tourism, and industrial & entrepreneur development. MFC is in
a position to undertake any job of techno-economic feasibility studies. MFC can prepare feasibility study report as per
the client’s requirement and so far worked different projects in Steel Industry, Automobile Industry, RMG Industry,
Agro Industry, Ceramics industry, Food Industry, Tourism Industry, Brick Industry, Real Estate Industry, Automatic
Rice Mill Industry, Printing & Packaging Industry and Services industries. MFC is working for development of the small
and medium industries directly and through associate companies. MFC is ready to undertake consultancy and
feasibility study of any project, industry, and ready to world anywhere in the world.

PROJECT FEASIBILITY STUDY REPORTS

We prepare project feasibility reports for almost any industry. At MFC we understand business owners are experts in
their field but may not be expert in starting and running a business. To fill in the gap we can provide effective,
affordable and convenient project reports to get you the information you need to get you moving to create that wildly
successful business that you have been dreaming about.
As a part of a national development mission of small-medium industries in Bangladesh, MFC has the pleasure to offer
you customized project techno-feasibility study reports in international standard & format.

If you are thinking of starting a business or industry in Bangladesh we are sure you will be benefitted from techno
feasibility study regarding your investment and operational outcome, which is why these reports are so valuable for
any entrepreneur/businessman since Banks in Bangladesh are financing based on the projects techno feasibility now.

PROFILE CONTENTS:

Each Detailed Project Feasibility Report contains:

 Exclusive, Detailed and Authentic information and data regarding Technical & Economical Feasibility of the
product/Service Prepared by team of Experienced Technocrats and Market Experts.

 Reports include all necessary details about the Introduction, Description of Industry/Product/Service/Item,
Properties, Manufacturing Process, Technology Description, Marketing, List of Machinery & Equipment, Raw
Material and Suppliers.

 Detailed Financial, Feasibility Analysis & much more as per client’s requirement.

ABOUT US

At MFC, motivation is a common phenomenon. Each one of us believes we can create an outstanding institution,
which can be a global leader in its areas of focus. Our team members are with full of energy and enthusiasm. Our goal

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 Feasibility Study report on Simco Rajendra Resort

is to be the most efficient, accurate and productive, and to compete on a truly global scale. Our team comprises of
professional from various sector like Steel Industry, Automobile Industry, RMG Industry, Agro Industry, Ceramics
industry, Food Industry, Tourism Industry, Brick Industry, Real Estate Industry, Automatic Rice Mill Industry, Printing
& Packaging Industry and Services industries. We have the proficiency of dealing with almost any sectors.

MD. MAHMUDUR RAHMAN OVI, Chief Financial Consultant

Obtained MBA & BBA in Finance from University of Dhaka in 2010 and engaged in financial industry till now. He has
taken professional training on Credit Risk Management in Banks and Financial Institutions, Advanced Credit Risk
Management, Financial Modeling, Risk Management in Banking, AML & CFT and Prevention of Trade Based Money
Laundering, Compliance and Associated Issues from Dhaka Stock Exchange and others. Besides, in technical field he
has following expertise:

 Competencies in financial and accounting valuation

 Project techno-economic feasibility studies
 Thorough understanding of banking procedures
 Corporate Banking
 Credit Risk management and evaluation
 Competencies in financial and accounting valuation
 Presentation and Marketing skills
 Knowledge of fund management
 Comprehensive understanding of industry and regulatory laws and regulations

OUR WORK IN RESORT SECTOR

Name of the client Sector Project Description

Bhawal Resort Limited Tourism An Entertainment and recreational resort under tourism.

For details report and resort business set up related ideas, please communicate at ovifin@gmail.com

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 Feasibility Study report on Simco Rajendra Resort

Section I: Introduction

INTRODUCTION

Despite challenges posed by recent global slowdown, economic fundamentals of Bangladesh remain quiet strong.
Economic growth momentum in fiscal year 2018 was underpinned by strong domestic & external demand as reflected
in buoyant public and private investment, and consumption, driven by consistent rising exports, remittances, and
private credit growth relative to last 05 years. A remarkable impetus of economic stability of our country has been
driven by the positive movement of Manufacturing, Service, Hotel & Tourism, & other sectors.

In order to achieve sustainable economic growth, the travel and tourism sector plays an important role to reduce
social, economic, environmental and cultural barriers. Some of the major obstacles to this growth are the lack of
infrastructure, environmental degradation and fragile linkages that weaken a country’s tourism potential public-
private sector partnerships that not only enable a country to grow economically, but retain the essential social,
cultural and environmental assets that make each country a unique product.

In order to cater to the growing demand of quality tourism/leisure activities in Bangladesh, the promoter SIMCO
Holdings Limited, a sister concern of SIMCO group has planned to develop a sophisticated and economically
viable resort at Gazipur with a fixed project cost of BDT 1,343.96 million. The project address is located at Rajendropur,
Gazipur Dhaka, Bangladesh which is about 60 Km from Zero (0) point of Dhaka and takes approximately 2 and half
hour’s drive from Dhaka on highway. The Resort location consisting with natural environment of calm and peaceful space,
strictly maintains international standard in its design. A discrete location surrounded by forest is one of its unique delights.

SIMCO Rajendra Resort will have following activities for its visitors and others purpose:

A. Resort room facilities

Cottage/villas category Nos. of Nos. of Nos. of

cottage/villas at cottage/villas at cottage/villas at
phase -1 phase -2 after full completion
Delux pool view 12 - 12
Forex/Superior View rooms 28 - 28
Single Bedroom suite 12 34 46
Double Bedroom Villa 03 04 07
Family/Group Villa with pool 01 02 03
Total 56 40 96
Others
Resort Capacity/seating in form of Banquet hall 500 people
Resort Capacity/single shift in form of Restaurant 84 people
Resort Capacity/single shift in form of meeting room 25 people

All the rooms will be designed with modern quality touch and latest possible amenities targeted to business corporate
and leisure market and the property also features a restaurant, cocktail lounge, swimming pools, fitness
center with women's and men's saunas Jacuzzi & Steam, 24 hours business center, 24 hours room service, and game
room. Meeting facilities include flexible meeting space & Small private meeting room.

B. Amusement rides & Water rides facilities

Category Types of rides capacity

Amusement 30m Ferris Wheel, 24-seat 30m Ferris Wheel 72 person (18 cabins)
rides Carousel (down- 24-seat Carousel(down transmission) 24 person
transmission), Tea Cup (6
Tea Cup (6 cups) 24 person (4p/cup)
cups), Elephant Train, Self-
control Plane, Big Pendulum Elephant Train 14 person

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Category Types of rides capacity

(down- transmission),
Sightseeing Train （Battery-
powered)
Water Park Small water house, Space
rides hole, Multi slide (3lanes), U
slide, Free fall slide & 2 person
spiral slide, and Multiple water
plays
Self-control Plane 16 person (8 cabins)
Big Pendulum(down transmission) 24 person
Sightseeing Train （Battery powered) 40 person (20p/carriage)
Peak instantaneous capacity 1100 visitors
Peak daily attendance 2200 visitors
Water Slides capacity 2160 players/hour

C. Commercial laundry service facilities

Besides, the proposed project will install a Commercial Laundry Service Unit which will have semi-automatic
machineries with high safety standards considering the requirement of hotels, hospitals, garments and other
institutional laundry requirement in the Gazipur area. This unit will take care of washing, cleaning, drying and packing
of all kinds of fabrics given by the customer which will add value the project operational performance too.

D. Other facilities

Fitness and wellbeing Center

A fitness & wellbeing center will be surrounded by state of the art equipment. Equipment will be is available to tone
up body muscles and rejuvenate. Visitors can sweat out superfluous body fat and discover the fresh self within.

Swimming Pool, Jacuzzi, Spa, and Steam Sauna

A swimming pool is an important part of the resort and will be instrumental for the popularity of the resort.
It will be one of the main basis of marketing the resort facilities. There will also a small nearby kid’s swimming pool.
There will be a juice and snack bar along with the swimming pool to add to the service provisions.

Scope of the Study

The scope of our study includes the following:

• Project profile & Feasibility study to set up a resort with amusement rides
• Analysis of economic trends
• Analysis of historical, current, and future supply and demand for resorts in the respective competitive
markets
• Financial assessment of the propped resort with amusement rides

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Section 2: Executive Summary

BACKGROUND

Bangladesh has made notable progress in tourism industry with collective efforts by the government, NGOs, Private
organizations and foreign investors and international originations to improve tourism sectors. The tourism
service sector has 3 streams in Bangladesh public, private (for profit) and nonprofit NGOs. The public sector
consists of facilities owned and run by the Ministry of Civil Aviation and Tourism.

The “SIMCO Rajendra Resort ”, a sister concern of Simco Holdings Ltd. under the dynamic leadership of Mr. Muzaffar
Siddique, has realigned itself as an innovative service provider through a comprehensive strategy to achieve
excellence in terms of total tourism services.

The management team will consist of highly experienced business and tourism professionals who will be
dedicated for quality services and future growth of the company. This will be an international standard resort project
of the Company. The project has been designed for providing general as well as specialized resort services to
local and international communities.

COMPANY OVERVIEW

The Company has been incorporated as a Private Limited company under the Companies Act 1994 with the Registrar
of Joint Stock Companies and Firms, Bangladesh.

SIMCO Rajendra Resort, the new-generation resort offers 96 Nos. of cottage/villas, Modern Fitness center including
Spa & Grooming session, Health Club, Bar, Lounge, Multi Cuisine Restaurants, Swimming Pool, Amusement world
including various theme rides and International standard Venue facilities. It is most conveniently situated to target and
attract the market segment that requires lodging services most frequently.

NATURE OF BUSINESS

Simco Group Resort will engage in the hospitality business in order to provide Entertainment and recreational
activities through its resort leisure activities. The company tenders to offer for cottage/villas, restaurant services,
conferences, corporate events. The resort will maintain international standard services in the industry, so that the
visitors are treated specially with quality services.

COST OF THE PROJECT

The total fixed cost of the project is estimated at BDT 1,343.96 Million. The detailed break-up of the total cost of the
project is provided as follows:

Summary Total Cost Equity Debt

Land 548,328,000 548,328,000 -
Building & Civil Construction 517,145,527 91,039,362 426,106,164
Amusement Park & Water Rides equipment 57,893,891 5,789,389 52,104,502
Transport 17,800,000 3,560,000 14,240,000
Furniture & Fixtures 50,779,141 10,155,828 40,623,313
Others Asset 40,000,000 13,000,000 27,000,000
IDCP 112,014,796 - 112,014,796
Total Fixed cost of the project 1,343,961,354 671,872,579 672,088,775
Project Debt-Equity ratio 100 50% 50%

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SUMMARY OF FINDINGS

This report finds the construction of the recommend hotel facility to be feasible. The following bullet points
summarize feasibility aspects of the proposed project within the market.

 Economic Feasibility – Economic feasibility is evidenced by information related to the project site
location; availability of trained or trainable labor; utilities; air, and road service to the site; and the overall impact
of the project. Overall, the subject project’s construction is deemed feasible due to the resort’s planned location in
the rapidly growing tourism sector in Gazipur. The area has an emerging source of demand due to its
scenic beauty and the proposed resort is expected to capture a healthy share of this demand over the
forecast period, noting occupancy levels near the market average.

 Market Feasibility – Market feasibility is evidenced by information on the sales organization and
management, nature and extent of market area, marketing plans for sale of project output, extent of competition,
and commitments from customers or brokers. The proposed subject project’s ownership/management
entity would be expected to be well rehearsed in resort operations. The proposed subject project’s
construction and favorable condition, as well as the anticipated popular brand affiliation, is expected to appeal to
users of demand generators in this market.

 Technical Feasibility – The technical feasibility of the proposed project addresses the suitability of the site for
its intended use, as well as the feasibility of achieving the levels of income projected and the estimated operating
costs. Overall, given the availability of land in the market, the technical feasibility of the proposed project is
reasonable.

 Financial Feasibility - Financial feasibility can be determined by an opinion on the reliability of the
financial projections and ability of the business to achieve the projected income and cash flow. An
assessment of the cost accounting system, the availability of short-term credit for seasonal business, and the
adequacy of raw materials and supplies are also considered. The subject project’s projection of income has been
estimated in the Financial Aspect Section. Overall, the subject project’s construction is deemed feasible as
the estimated income and expense levels represent a profitable operation. We note that our income and
expense projections do not consider any possible incentives from the Government; if incentives were
offered, this benefit would favor the business growth further.

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Section 3: Industry Overview

Tourism Industry
The tourism industry has emerged as a major income driving industry in many developing/middle income
countries in the world. There is a plethora of literature and studies that show how a thriving tourism sector can have
positive impact on economic growth and development of countries. Bangladesh is blessed with natural beauty,
ranging from mountains to rivers to beaches to biodiversity.

It boasts the longest natural beach in the world in Cox’s Bazaar as well as the largest mangrove forest in the world at
the Sundarbans. According to World Trade Organization (WTO), one incoming tourist in a particular country provides
direct and indirect employment to nine persons. Travel and tourism is now one of the world`s fastest growing
business segments. Tourism is one of top five export categories for as many as 83 per cent of countries
and is a main source of foreign exchange earnings at least 38 per cent of countries. According to a study of
World Travel and Tourism Council (WTTC), direct employment support by travel and tourism is forecast to rise by 2.9
per cent per annum to 1,785,000 jobs or 1.9 per cent of total employment in 2023. This includes employment by
hotels, travel agents, airlines and other passenger transportation services (excluding commuter services).
The world tourism market has grown at an average of 3.7 per cent over the past five years and is projected to grow
by an average of 4.9 per cent over the next five years, with Asia and Pacific regions recording the fastest growth
rate.

Like other countries, hospitality is now becoming Bangladesh`s one of the largest industries, generating additional
jobs across the country. Hotel industry can play a significant role in the growth of the tourism industry as
Bangladesh is strategically located in an ideal place in Asia and a tourist destination on the map of the world.

According to the International Monetary Fund (IMF), the size of the GDP of Bangladesh reached 153.5 billion US
dollars in 2013. During 1970-2013 GDP of Bangladesh grew by 146.4 billion US dollars (in 21.6 times).During 1970-
2013 GDP per capita in Bangladesh rose by 873 US dollars (in 9.2 times) to 980 US dollars. The average
annual growth of GDP per capita in Bangladesh was 20.3 US dollars or 19 percent. Now GDP per capita of
Bangladesh is 1314 US dollars. The economy of the country has been maintaining 6 plus per cent growth since 2004.

The earnings from the sector recorded at 100.75 million US dollars in 2012, 83.73 million US dollars in
2011, 79.83 million US dollars in 2010 and 83.9 million US dollars in 2009. Bangladesh is endowed with so many
natural beauties like sea beaches, parks, forests, eco tourism, wild life sanctuaries, hill tracts areas, tea estates,
island, etc. Moreover, two international standard sea ports, hundreds of museums, can attract people from all
over the world.

Visitor exports are a key component of the direct contribution of Travel & Tourism of Bangladesh. According to the
World Travel & Tourism Council report of 2018; During 2017 Bangladesh generated BDT18.4bn in visitor exports. In
2018, this is expected to grow by 6.3%, and the country is expected to attract 209,000 international tourist arrivals.
By 2028, international tourist arrivals are forecast to total 293,000 generating expenditure of BDT35.8bn, an increase
of 6.2% pa.

The direct contribution of Travel & Tourism to GDP in 2017 was BDT427.5bn (2.2% of GDP). This is forecast to rise
by 6.1% to BDT453.5bn in 2018.This primarily reflects the economic activity generated by industries such as hotels,
travel agents, airlines and other passenger transportation services (excluding commuter services). But it also
includes, for example, the activities of the restaurant and leisure industries directly supported by tourists. The total
contribution of Travel & Tourism to GDP (including wider effects from investment, the supply chain and induced
income impacts was BDT850.7bn in 2017 (4.3% of GDP) and is expected to grow by 6.4% to BDT905.5bn (4.3% of
GDP) in 2018. It is forecast to rise by 6.8% pa to BDT 1,753.1bn by 2028 (4.6% of GDP).

At present there are 28 five-star, four-star and three-star hotels and resorts in the country. According to sources, the
demand for 5-star accommodation in Country is at present increasing at the rate of 15 per cent a year. In coming
years the demand will be increased further as demand for accommodation increasing in Bangladesh frequent visits by
increased number of the foreign businessmen coupled with hosting of international sports events.

Our cities have become congested and polluted and the future of our nation is now imprisoned in small cells called
classrooms and apartments. People become weary by living a monogamy life in this concrete Dhaka and Other
Metropolitan area. To extricate people from the humdrum and monotony of the busy urban life, numbers of resorts

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has been build in Gazipur and people are getting very much fond to take visit in those resorts as touch of green will
make life relaxed in natural serenity. At present following resort are operating in Gazipur with full swing.

MARKET ANALYSIS (Demand-Supply):

Despite challenges posed by recent global slowdown, economic fundamentals of Bangladesh remain quiet strong.
Country’s GDP is estimated to grow by 7.2% in the coming fiscal years (2018-2019), driven by service, Hotel &
Tourism, Manufacturing & Real Estate Sectors.

The Hotel and Tourism sector has been on a rapid growth track during last 12 years. During 2017 Bangladesh
generated BDT18.4bn in visitor exports. In 2018, this is expected to grow by 6.3%, and the country is expected to
attract 209,000 international tourist arrivals. By 2028, international tourist arrivals are forecast to total 293,000
generating expenditure of BDT 35.8bn, an increase of 6.2% pa.

Businessmen, tourists, expatriates and travelers visiting and staying in resort prefer to avoid heavy traffic of the city
center. Besides, Gazipur is renowned for its industrial zone where there is almost 1300 factory located consisting of
almost 2 million workers. Among them, managerial/administrative executives’ along with guest/foreigners present
nearly 25% of total workforce who often reside in nearby hotel and resort on multiple times. In addition local
corporate house, visiting tourists’ groups/delegates, educational institution, government/private organizations often
arrange recreational activities in the surrounding area of Gazipur eco park and resorts each year which strongly
support for the growth of tourism sector in Bangladesh.

Although there is demand for hospitality services in all the seasons, the demand for hotels and resort services
increases in the winter season more than other seasons. Likewise, the demand for hospitality services reduces in
rainy season. So the company, operating in providing resort services, has the seasonal impact on its business and
income.

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Section-4: Technical Overview

Project Layout

SIMCO Rajendra Resort: Natural Bliss in Rajendrapur Estate

 Feasibility Study report on Simco Rajendra Resort

4.1 Resort Activities

Rooms & Suites

The Resort will be of stylish, comfortable, well-furnished and air-conditioned rooms with contemporary luxury
and gracious service.

Cottage/villas category No. of bedrooms Nos. of cottage/villas at after full

completion
Delux pool view Single bed 12
Forex/Superior View rooms Single bed 28
Single Bedroom suite/villa Single bed 46
Double Bedroom Villa Double bed 07
Family/Group Villa with pool Quintuple bed ( Five bed) 03
Total 96

Delux pool view room interior view

Forex/Superior View rooms interior view

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Single Bedroom suite/villa interior view

Double Bedroom suite/villa interior view

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Family/Group Villa with pool view

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Fitness and wellbeing Center

SIMCO’s fitness center & Health Club offers the finest cardio exercise machines, including bikes, cross-trainers and
treadmills each equipped with a 18.5 inch personal LCD display and satellite channels, so that members can enjoy
every moment they jog. Free weights and a variety of strength machines are also available to build and condition the
body. The professional trainers will be by members’ side to ensure that members do not strain themselves too far as
well as that members achieve the best to their ability during each session.

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Swimming Pool, Spa, and Steam Sauna

A swimming pool is an important part of the resort and will be instrumental for the popularity of the resort.
It will be one of the main basis of marketing the resort facilities. There will also a small nearby kid’s swimming pool.
There will be a juice and snack bar along with the swimming pool to add to the service provisions.

The Spa and Steam Sauna of Simco Rajendra resort will be a warm place to rejuvenate. Stay in tip-top condition
with an invigorating sauna. Feel refreshed, rejuvenated and ready for a fun night out. A session in our comfortable
sauna room will perfectly round off a soothing spa treatment and is an effective remedy for aches, pains and general
fatigue. Other benefits of using a sauna include a heightened sense of wellbeing and calmness. The sauna can
accommodate three/four people at the time.

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Banquet and Conference, Restaurant and Bar

Banquet and Conference

The Resort will have a banquet hall with a capacity of 500 peoples for parties, banquet hall also be used for
exhibitions/events. The banquet hall is very essential for the hotel and will be done in a western concept. There will
be 1 conferencing hall for business meeting, conference and gathering etc. The hall will be equipped with all the
modern conferencing aids. Resort Capacity/seating in form of Banquet hall is 500 people.

Restaurant and Bar

The hotel will be having 2 nos. of restaurant, a Lounge Bar and a coffee shop, which will be offering a choice of
continental, Chinese and variety of food from Indian cuisine, and one open restaurant with the above amenities for
the outside visitors. The bar will be well stocked with best of seasonal fruit juices and wine where guests can spend
their time with gossiping watching television. Resort Capacity/single shift in form of Restaurant is 84 people at a
time.

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Amusement world
The resort will have amusement rides and Water Park rides for its visitors recreational activities. The features of the
amusement world are follows:
Category Types of rides Visitors capacity
(daily)
Amusement rides 30m Ferris Wheel, 24-seat Carousel (down- transmission), Tea 1, 100 person
Cup (6 cups), Elephant Train, Self-control Plane, Big Pendulum
(down- transmission), Sightseeing Train （Battery- powered), Floor
bumper car
Water Park rides Small water house, Space hole, Multi slide (3lanes), U slide, Free
fall slide & 2 person spiral slide, and Multiple water plays

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Commercial laundry service facilities

The proposed project will install a commercial laundry service unit which will have semi-automatic machineries with
high safety standards considering the requirement of hotels, hospitals, garments and other institutional laundry
requirement in the Gazipur area. This unit will take care of washing, cleaning, drying and packing of all kinds of
fabrics given by the customer which will add value the project operational performance too.

What we will do:

• Pick up your laundry and dry cleaning, on a schedule or as needed

• Clean your laundry to as per client exact specifications
• Return your items in 48 hours or less!
• Accommodate any special requests
• Dry-clean or iron any items as per customer indicate

Our Commercial service for Clients Include:

Salons & Spas
Massage Therapists
Physical Therapy Center
Restaurants
Health Care (Lab Coats,
Scrubs, etc.)
Auto Detail Shops
Nail Salons
Bed & Breakfasts
Athletic Facilities/Gyms
Hotel & Motels
Veterinary Clinics
Nursing Homes
Many More

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4.2 Other Facilities in Resort

Travel Desk
The resort will also have a Travel Desk, which will help visitors to gather information and sketch a tour
for visiting the tourist place in nearby lavish Gazipur area.

Pick up Facility
The resort will have the provision for Pick up facility for the visitors from the suitable places.

Business Center
The business center is equipped with the latest office automation equipment to provide secretarial services and
allied services like courier services, E-mail services, Telecommunication services and other support services.

Currency Exchange Facility

The hotel will also provide the currency exchange facility to overseas guests.

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Section 5: Financial Highlights of the proposed ventures

Name of the SIMCO Rajendra Resort

proposed project
Commencement Projected 2021
of commercial
operation
Project Cost and Total Fixed cost of the project: BDT 1,343.96 million
Means of
Equity portion: 671.87 million
Finance
Debt: portion: 672.08 million
D/E ratio: 50:50
Financial Particulars Y-1 Y-2 Y-3 Y-4 Y-5 Y-6 Y-7 Y-8
Summary (BDT Turnover 378.27 397.19 417.05 458.75 504.63 555.09 610.60 671.66
in million) Gross profit 206.26 218.99 232.32 267.15 305.77 348.58 396.02 448.55
Operating profit 126.04 144.03 163.23 204.32 249.89 301.10 356.41 418.45
Net profit after 126.04 144.03 163.23 204.32 249.89 195.72 231.67 271.99
tax
Amortization Period Interest Principal *Installment payment @10% Balance
schedule Y-1 64.61 57.77 122.38 614.32
(BDT in million)
Y-2 58.56 63.82 122.38 550.50
Y-3 51.88 70.50 122.38 479.99
Y-4 44.49 77.89 122.38 402.10
Y-5 36.34 86.04 122.38 316.06
Y-6 27.33 95.05 122.38 221.01
Y-7 17.37 105.01 122.38 116.00
Y-8 6.38 116.00 122.38 (0.00)
Total 306.96 672.09 979.04 -
*Total Loan period: 10 years (Moratorium 02 years+ Repayment 08 years)
Debt Service Y-1 Y-2 Y-3 Y-4 Y-5 Y-6 Y-7 Y-8
Coverage Ratio 1.95 2.04 2.14 2.39 2.68 2.18 2.37 2.59

Key Financial Profitabilit Yr-1 Yr-2 Yr-3 Yr-4 Yr-5 Yr-6 Yr-7 Yr-8
Ratio y Ratio
(Profitability Gross Profit 54.53% 55.13% 55.71% 58.23% 60.59 62.80% 64.86 66.78
Ratio) Margin (%) % % %
Operating 33.32% 36.26% 39.14% 44.54% 49.52 54.24% 58.37 62.30
Profit (%) % % %
Net Profit 33.32% 36.26% 39.14% 44.54% 49.52 35.26% 37.94 40.50
Margin (%) % % %
Return on 17.15% 17.18% 16.80% 17.91% 18.51 12.61% 13.09 13.50
Equity (ROE % % %
%)
Return on 8.95% 9.72% 10.42% 12.20% 13.78 10.10% 11.21 12.29
Investment % % %
(ROI %)
Key Financial Efficienc Yr-1 Yr-2 Yr-3 Yr-4 Yr-5 Yr-6 Yr-7 Yr-8
Ratio (Efficiency y Ratio
Ratio) COGS of 31.28% 31.34% 31.42% 30.06% 28.76% 27.53% 26.35% 25.22%
Sales
Financial 18.56% 16.23% 13.92% 11.17% 8.67% 6.25% 4.29% 2.39%
Exp. Of
Sales

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Key Financial Liquidity Ratio Yr-1 Yr-2 Yr-3 Yr-4 Yr-5 Yr-6 Yr-7 Yr-8
Ratio (Liquidity Current Ratio 3.05 5.10 7.13 9.15 11.26 12.22 13.23 14.28
Ratio)
Quick Ratio 3.05 5.10 7.13 9.15 11.26 12.22 13.23 14.28
Project Risk Sale Volatility 21.25%
Analysis Business Risk 43.11%
Particulars Y-1 Y-2 Y-3 Y-4 Y-5 Y-6 Y-7 Y-8

Degree of Operating Leverage 2.01 2.86 2.67 2.52 2.23 2.05 1.84 1.74
Degree of Financial Leverage 2.26 1.81 1.55 1.33 1.21 1.13 1.08 1.04
Degree of Combined Leverage 4.54 5.17 4.14 3.36 2.70 2.32 1.98 1.81
Project Discounted Payback period 7.36 years
investment NPV BDT 365.85 million
related ratio
IRR 15.28%

Section 6: Conclusion

As per provision of the Memorandum and Articles of Association, to arrange proportional capital to establish the
project the sponsors will seek financial assistance from any Bank or Financial Institutions. An in-depth analysis of all
the related aspects in terms of Management, Marketing, Technical & Financial aspects and on the basis of the
feasibility analysis the project has been found financially viable, commercially feasible & technically sound attractive.

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For details report and interested in resort business set up/operation/

feasibility work related consultancy, please communicate with

MD. MAHMUDUR RAHMAN OVI

Chief Financial Consultant
Cell: 01977-289026, 01912-289026
Email: ovifin@gmail.com

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