South Bay Marine Profile

FEASIBILITY STUDY
ON
M/S. SOUTH BAY MARINE
21, GOLAP SING LAIN

NANDAN KANON
CHITTAGONG CITY CORPORATION
CHITTAGONG
Prepared by: Company Management
January, 2013
Page3
M/S. South Bay Marine
Section-I
Management Aspects
1. Introduction:
The proposed project envisages adding of 2 (Two) nos. Steel Hulls, which are seaworthy,
modern mechanized, second hand/reconditioned deep sea mid water fishing vessel. The
capacity of each fishing vessel is 110 M.T. The vessel will be engaged in fishing at the Exclusive
Economic Zone (EEZ) of Bay of Bengal. Brief particulars of the sponsors are presented below:
2. Particulars of the Applicant:
a) Name of the Applicant : Mohammed Fakruddin Ahmed

Address: i) Permanent : 21, Golap Sing Lain,
Nandan Kanon,
Chittagong City Corporation,
Chittagong.
ii) Present : - Do -
c) Qualification : B.A, Master Marine, Class-I (Singapore) 2005
d) Experience : Experience in Ship building for about 3 years as Project
Director, experience in Ship Management for about 5
Years as operational Superintendent and Sea Service
Experience for about 11 years. He has extensive
consulting/advising experience of several shipping &
fishing companies. Besides this, he is engaged in another
more businesses.
e) TIN No : 353-104-7733/26
f) ID No : 1594122969752
g) Date of Birth : 01-01-1968
3. Brief of the Sponsors:
a) Mr. Mohammed Fakruddin Ahmed, (Aged-45 Years.), S/O. Late Rayhanuddin Ahmed &
Rowshonara Begum, Address: Present & Permanent: 21, Golap Sing Lain, Nandan
Kanon, Chittagong City Corporation, Chittagong. is the proprietor of the Project. He is a
Master Marine , Class –I and now he is engaged in Ship Building Business from 2009.
Before starting Ship Building Business he was the Project Director of Western Marine
Shipyard Ltd. for about 3 years. Besides this, he has extensive consulting/advising
experience of several shipping & fishing companies. He has experience in Ship
Management for about 5 Years as operational Superintendent and Sea Service Experience
Page3

for about 11 years. Moreover, he has another business organization like he is proprietor of a
Boutique Business named Khadi Mela, he is Managing Director of South Bay Marine
Engineering Services, Managing Director of Ishmam Trading Ltd., Chairman of South Bay
IT Ltd., Chairman of Green Technology and equipments Ltd., Executive Director and
Principal of Ocean Maritime Academy and Director of Green Logistics.
4. Particulars of the Sponsors:
The project is being promoted by the following person:
Name and Address Father’s/ Mother’s/ Academic Status Extent

Husband’s name Qualification of share
Mohammed Fakruddin Father: Late Dr. B.A, Master Proprietor 100 %
Ahmed Rayhanuddin Ahmed Marine, Class –
21, Golap Sing Lain, Mother: Late I (Singapore)
Rowshonara Begum
Nandan Kanon,
Chittagong City
Corporation, Chittagong.
The Sponsors is a Freelance Auditor of International Safety Management (ISM) Code &
International Ship and Port Facility Security (ISPS) Code.
He has the following Advanced/Ancillary Training Courses:
- Advance Training in Fire Fighting

- Proficiency in Survival Craft
- Medical Emergency- First Aid
- Efficient Deck Hand Certificate
- Medical Care on Board Ship
- Advanced Fire Fighting
- Bangladesh Merchant Shipping Ordinance Familiarization Course
- Security Officer Course
- Personal Safety and Social Responsibility Course
- Certificate of Proficiency in survival Craft and Rescue Boats
- Navigation Control
- Ship Board Training and Assessment.
Page3

5. Particulars of the Project:
a) Name of the Project : M/S. South Bay Marine

b) Location of the Project office : 21, Golap Sing Lain, Nandan Kanon,
Chittagong City Corporation, Chittagong.
c) Type of Industry : Deep Sea Mid water Fishing Vessel
d) Capacity : 110 .M.Tons. X 2 Nos.
e) Nature of the firm : Proprietorship Company
6. Constitution of the Firm:
Proprietorship Company already has Trade License under Chittagong City Corporation,
Anderkilla, Chittagong.
7. Management & Organizational Set -up:
The overall management of the company’s business will be vested with its Proprietor. The
Proprietor will formulate company’s policies and provide guidelines for its day-to-day business
operation. The Proprietor of the company will be the Chief Executive who will assume the
overall responsibility of running the day-to-day operation/administration of the company. He will
be assisted by the other managerial and technical personnel for smooth operation of the project.
Page3
Section-II
Technical Aspects
Introduction
The proposed project envisages adding of 2 (Two) nos. Steel Hulls, which are seaworthy,
modern mechanized, second hand/reconditioned deep sea mid water fishing vessel. The
capacity of each fishing vessel is 110 M.T. The vessel will be engaged in fishing at the Exclusive
Economic Zone (EEZ) of Bay of Bengal. The fixed cost of the project is estimated at Tk.
6600.00 lacs. Detailed of the fixed Cost is shown in Annexure-I
Location
Like other industries the project will not require any factory establishment. As such project land
or building is not required. The project office is situated at 21/1, Golap Sing lain, Nandan Kanon,
Chittagong City Corporation, Chittagong, from where the business activity will be controlled.
Production Capacity
Annual installed capacity of the Vessel/project based on 240 (Two hundred forty) working days
in a year will be as below.
Sl. No Item Annual Capacity

1. Different Sea Fish like Pomfret, Indian Salmon, 3,080 Metric Ton
Black Datina, Lobster, Ribbon, Tuna, Hilsha, Red
Snapper, White Jew, Red Jew, Cat Fish, Kowa
Big eye etc.
Total : 3,080 Metric Ton
Assumptions underlying to estimate the capacity:
a) Trips: The vessel will make 14 voyages (17 days / voyage) per year based on the following
assumptions:
i) The operating days will be 240 days per year and another 30 days will be required for
annual docking, undocking, repair and maintenance etc.
ii) Transportation: (2+2) = 4 days & Fishing period: 10 days in each voyage.
iii) Unloading, store etc.: 3 days in each voyage.
Page3
Raw Material Requirement:
On the basis of production capacity, the annual raw material requirement is as follows:
Sl. No. Item Quantity Source

1. Different Sea Fish like Pomfret, Indian 3,080 M.T Local
Salmon, Black Datina, Lobster, Ribbon,
Tuna, Hilsha, Red Snapper, White Jew, Red
Jew, Cat Fish, Kowa Big eye etc.
2. Packing Materials (PP bag) 22,400 Lbs. Local
3. Stacking Materials (Tray) 400 Pcs. Local
4. Processing & Washing Material (Basket) 1,000 Pcs. Local
5. Fresh Water 3,650 M.T Local
6. Voyage materials & Gear materials LS. Tk. 84.00 Lac Local
7. Food stock, LP gas & others LS. Tk. 50.00 Lac Local
Assumptions:
i) Packing Materials: 400 Lbs /voyage/vessel

ii) Fresh water: 5 MT/day/vessel, required for 365 days
iii) Voyage materials & Gear materials: Tk. 3.00 lac/voyage/vessel
Specification of the Vessel:
Specifications of the proposed 2 Nos. Fishing vessels are as follows :
a) Body (each vessel) :
Length Over all = 39.88 Meter.

Breadth Over all = 7.20 Meter.
Depth (modified) = 3.60 Meter.
Draught (loaded) = 2.80 Meter.
Gross Tonnage = 222.00 Tons
Net Tonnage = 80.00 Tons
Year of Mfg. - 2005
Country of origin - China
Page3
b) Engine (each vessel):
No. of Engine : 1 No.

Engine Power : 848 BHP
Engine Type : Caterpillar Diesel
Engine.
Country of origin : USA
RPM : 1,800
No. of Cylinders : 12
No. of Main shafts : One
Dia. Of shaft : 150 mm
Speed of vessel = 11.8 Knots per hour.
c) Capability (each Vessel) :
Fish freezing capacity : 25 MT/ day

Fish storage capacity : 110 MT
Fresh water preserves capacity : 60 Tons
Fuel consumption : 1700 Lt. / day
The vessel will be equipped with required gear equipment, navigational accessories, life saving
equipment etc. as per navigation rules shown as follows:
d) Navigation & Safety Equipment (each vessel):
- Radar
- Sounder
- Sonar
- GPS
- VHF/FM
- Plotter
- Thermometer/Hygrometer
- Inclinometer
Page3

e) Safety Equipment & Fire fighting (each vessel):
- Life Rafts – 2 nos.

- Life Jackets – 45 nos.
- Life Buoys – 12 nos.
- Fire Pump – 1 set
- Dry Chemical – 4 nos.
- CO2 – 2 nos
- Foam – 2 set
f) Gear Equipment (each vessel):
- Trawl Net – 3 Sets

- Trawl Door – 4 sets
Procurement Plan:
Proposed two vessel will be purchased as second hand/reconditioned. On the basis of lowest
quotation submitted by M/S. Speed Sea Fish Co. Ltd., HBFC Building (1 st floor), 1/D, Agrabad
Comm. Area, Chittagong (Name of the two vessel is F.V. SPEED -1 & F.V. SPEED – 2.), the
value of the two vessel is estimated at Tk. 6400.00 Lac. Details are shown in Annexure – III (A).
Technical Know How:
NO foreign technician will be required for the operation of the vessel. However, qualified and
experienced persons are available in the country to run such type of project smoothly.
Accommodation:
Accommodation is for 42 persons / vessel.
Certification
i) The Vessel will be registered with the Registrar of Shipping, Mercantile Marine Department,
Govt. of Bangladesh.
ii) Certificates of survey will be obtained from BIWTA.
Page3

Iii) Local Fishing vessel license will be obtained from Department of Fisheries, Govt. of
Bangladesh.
iv) The vessel will be insured with approved insurance company.
Preliminary and Pre-operating Expense:
Preliminary and Pre-operating cost has been estimated at Tk. 30.00 Lac, which includes Vat,
Survey Cost, and Registration fee, Documentation Charges etc
Furniture, Fixture & Office equipment:
The project will procure furniture, fixtures & office equipment. An amount of Tk. 10.00 Lac has
been estimated for procurement of furniture, fixtures & office equipment including interior
decoration.
Docking, Undocking & Spares Cost:
The cost of annual docking, undocking, repair, maintenance & spares required for the Two
Vessel has been estimated at Tk. 200.00 lac.
Stores & Spares:
The annual requirements of stores and spares for the Vessel has been estimated at 0.5 % of its
cost for each year.
Repair & Maintenance:
The annual requirements of stores and spares for the Vessel has been estimated at 0.5 % of it’s
cost for every year.
Fuel & lubricants
Annual requirement of fuel and lubricating oil for the two vessels will be as follows:
i) Diesel oil : 1020,000 Litre

ii) Lubricating oil : 14,000 litre
iii) Grease : 200 Kg.
Transportation:
The project will procure 2 nos. Covered Van with freezing system having capacity of 3 MT each
and 3 nos. Pick up Van of capacity 1.5 MT each for carrying fishes & other materials. Cost of
which is estimated at [(Tk. 50.00 Lac X 2 ) + (Tk. 20.00 Lac X 3)]= Tk. 160.00 Lac.
Page3
Man Power Requirements
For smooth operation of the project the following man power will be required:
(a) Technical Staff:
Sl. No. Catagory Nos.

1. Operation Manager 2
2. Tally Man 4
3. Skipper 2
4. Chief Engineer 2
5. Chief Officer 2
6. Second Officer 2
7. Junior Engineer 2
8. Boat Swan 2
9. Grasser 10
10. Cook 2
(b)
11. Asstt. Cook 2
12. Sailor (Skilled) 40
13. Sailor (Semi skilled) 12
Total: 84 Persons
Administrative Personnel:
Sl. No. Catagory Nos.

1. General Manager 1
2. Accountant 1
3. Commercial Officer 1
4. Executive 2
5. Store Officer 2
6. Driver 5
7. Peon 1
8. Security Guard 2
Total: 15 persons
Total Man Power Requirements (a + b) = (84 + 15) = 99 Persons.
Project Implementation Schedule:
The Project is expected to be completed within 1 month from the date of initiation of
procurement.
Page3

Section III
Marketing Aspects
Introduction:
Bangladesh has a coast line of 714 km and an exclusive Economic Zone (EEZ) of 1,66,000 Sq.
Km. At present only one fourth part of the EEZ is under fishing operation. The fishery resources
of the rest of the EEZ need to be explored and exploited. It is also possible to extend fishing
operation beyond the EEZ ie. in the international waters. Presently there are different kinds/types
of fishing vessels engaged in fishing at the EEZ of the Bay of Bengal such as Shrimp Trawler,
Fin Fish Trawler, Demersal Trawler etc. and different types of methods of fishing to operate the
above Trawler like Bottom Trawling, Mid Water Trawling, Jigging etc.
Mid water trawling is much ‘cleaner’ method of fishing, in that the catch usually consists of just
one species and does not physically damage the sea bottom. The proposed project envisages
adding of 2 (Two) nos. Steel Hulls, which are seaworthy, modern mechanized, second
hand/reconditioned Deep sea Mid water fishing vessel. The capacity of each fishing vessel is
110 M.T. The vessel will be engaged in fishing at the Exclusive Economic Zone (EEZ) of Bay of
Bengal.
Capacity:
Annual installed capacity of the Vessel/project based on 240 (Two hundred forty) working days
in a year will be as below.
Sl. No Item Annual Capacity

1. Different Sea Fish like Pomfret, Indian 3,080 Metric Ton
Salmon, Black Datina, Lobster, Ribbon, Tuna,
Hilsha, Red Snapper, White Jew, Red Jew, Cat
Fish, Kowa Big eye etc.
Total : 3,080 Metric Ton
Products & its Uses:
The project will produce sea fishes. Most of the people prefer fish to meat. Populations of our
country are increasing year to year and hence demand of fish is rapidly increasing.
Product Pricing:
Next to quality, product pricing plays an important role in the marketing of goods. Price is
determined on the basis of demand and supply situation. To compete in the market the product
must be competitive price wise along with the proper maintenance of quality. Determination of
output prices depends among others on the raw materials pricing. While fixing the prices, the
Page3

existing market price structure should be taken into consideration, so that the price so fixed must
be competitive and acceptable to the target buyers.
Product Marketing:
The product of the proposed project will be sold to the buyers in Bangladesh. They will sell the
fishes to the whole sellers & exporters. They will make direct contact with the buyers through
personal visits and correspondence over phones, letter, telex or FAX.
Product Quality:
Hence fishes are consumable goods, quality of it’s very much important. Besides this, the project
having large experienced & highly educated management. This will help to maintain quality of
fishes.
Competitive Price:
The price of the product and raw materials are given below:
Price of product:
Sl. Item Unit Avg. Unit

No. price in TK.
01. Different Sea Fish like Pomfret, Indian M.T 90,000/-
Tuna, Hilsha, Red Snapper, White Jew,
Red Jew, Cat Fish, Kowa Big eye etc.
Price of Raw materials:
Sl. Particulars Unit Unit Price in

No TK.
1. Different Sea Fish like Pomfret, Indian M.T -
Tuna, Hilsha, Red Snapper, White Jew,
Red Jew, Cat Fish, Kowa Big eye etc.
2. Packing Materials (PP bag) Lbs. 250/-
3. Stacking Materials (Tray) Pcs. 400/-
4. Processing & Washing Material Pcs. 400/-
(Basket)
5. Fresh Water M.T 140/-
6. Voyage materials & Gear materials LS. Tk. 112.00 Lac
7. Food stock, LP gas & others LS. Tk. 40.00 Lac
Page3

Existing Fishing Trawlers in Bangladesh:
Currently more or less 183 nos. fishing trawlers have been approved for trawling in the Bay of
Bengal, among them more or less 175 trawlers are now engaged in fishing in the Bay of Bengal.
Out of 175 trawlers, 50 are shrimp trawlers and rest 125 are fin fish, squid and mid water
trawlers.
Demand Analysis:
Bangladesh is a country of about 16 (Sixteen) Crore people and the population are tremendously
increasing, as a result demand of fish is rapidly increasing as because most of the people prefer
fish to meat. Moreover, the poor people can meet their demand of protein as the fishes are chief.
As we don’t have accounted exact figure, but to meet the demand of fishes in our country, we are
depending on India & Myanmar, we can say that we have demand gap of fishes. Moreover, if we
consider our daily consumption only 60 gm fishes/day/person, then the total requirement for our
16 Crore people per year stands as 35.04 Lac M.T. But it is very less, actual demand will be
higher.
Supply Analysis:
Production of fishes from Sea sector & Inland sector through 2003-04 to 2008-09 is shown
below:
Table-I
Fish collection from Sea sector & Inland sector
(Lac Metric Ton)
Year Quantity Total

Inland Sea
2003-04 16.47 4.55 21.02
2004-05 17.41 4.75 22.16
2005-06 18.49 4.80 23.29
2006-07 19.52 4.87 24.40
2007-08 20.66 4.97 25.63
2008-09 20.90 6.11 27.01
Source: Bangladesh Economic Survey 2010
From Table-I it is seen that, inland fish production & sea sector fish production both are
gradually increasing, so total fish production is increasing. From table, it is found that the
increasing rate is about 5 %. So, we can say that, in 2012-13 the supply will be about 32.85 Lac
M.T. From the assumed demand we can say that still there will be 2.19 Lac M.T demand supply
gap.
Page3

The proposed Fishing vessel will procure only 3080 MT fishes at 100% capacity utilization,
which is only about 1.40 % of the demand gap.
Conclusions:
From the above analysis, it can be concluded that there is abundant capacity gap in the sector and
the project is feasible in terms of marketing aspect.
Page3
Section - IV
Financial Aspects
Summary of Financial Aspect:
1. Name of the Project : South Bay Marine
2. Location of the project :
3. Total Cost of the project : 6600.00 Lac
4. Proposed Bank Loan : 4300.00 Lac
5. Proposed Working Capital : 157.42 Lac
6. Debt Equity Ratio : 65:35
7. Rate of Interest : 15%
8. Period of Loan : 10 years (including Grace 1 year Period )
9. Grace Period : 12 months.
Fig in
Lac Tk.
1st year 2nd year 3rd year 4th year 5th year
10. Sales Revenue : 2710.40 2879.80 3049.20 3218.60 3218.60
11. Cost of Goods Sold : 1564.60 1583.77 1603.62 1624.14 1630.56
12. Operating Profit : 1106.47 1254.06 1400.77 1546.59 1536.88
13. Net Profit : 381.55 437.44 599.95 767.77 810.92
14. Networth : 2749.01 3186.45 3786.39 4554.17 5365.09
15. Raios:
1st year 2nd year 3rd year 4th year 5th year
a. Capacity Utilization 80% 85% 90% 95% 95%
b. Gross profit to sales 42% 45% 47% 50% 49%
c. Operating Profit to sales 41% 44% 46% 48% 48%
d. Net Profit to sales 14% 15% 20% 24% 25%
e. Debt-Service Coverage Ratio 0.00 1.50 1.62 1.73 1.71
Avarage= 1.74
f. Levarage Raito 1.62 1.51 1.19 0.91 0.69
g. Liquidity Ratio 1.19 1.25 1.78 2.39 3.00
h. BEP at assumed Capacity 60% 63% 60% 57% 55%
Page3
i. IRR 23%
Fixed Cost of the Project
The Total Cost of the project is estimated = 6600.00 lakh
Fixed Cost Tk. in '000'

Item Cost Cost to be Total
Incurred Incurred
Steel Hull Fishing Vessel (2 nos.) 640000 640000
Vehicle 16000 16000
Furniture, fixture & office equipment 1000 1000
Preliminary & Pre-operating Expenses 500 2500 3000
Total 500 659500 660000
Tk. in '000'
Means of Finance:
Bank Loan 430000 430000
Total Loan 430000 430000
Owner's Equity 500 229500 230000
Total Loan & Equity 500 659500 660000
Debt : Equity 65:35
Page3
ASSUMPTIONS:
FINANCIAL EVALUATION
Profitability potential of the project has been computed for four projected years of operation
to asses the financial viability of the project. The financial projection includes sales estimate
operating cost estimate, administrative, selling and Financial expenses estimate. Earning
forecast, Sales estimate, Operating Cost ,Overheads and financial expenses have been shown
in financial evaluation.
ASSUMPTIONS OF EARNING FORECAST:
The main assumptions underlying the earning forecast are as follows:
a)The project will work for 240 working days in a year.
b)The capacity build up will be achieved gradually i.e. 80% in the first year85%in the
2nd year,90% in the 3rd year and 95% in the 4th
year
c)The cost of raw materials as well as the selling price of the finished goods are kept
constant through out the projected years on the assumptions with the increase in price of raw
materials there will be subsequent increase in selling price.
d)While calculating the wages and salaries an increment@5% per annum and bonus equals
one month's pay is taken into account.
e)Depreciation has been charged on straight line method at the following rates:
i)Machinery @ 5%
ii)Building @ 5%
iii)Other assets @ 20%
Page3
Working Capital Estimate

Tk In
'000'
Tied up
Particulats Period Amount
1st 2nd 3rd 4th 5th
Year Year Year Year Year
Capacity Utilization 80% 85% 90% 95% 95%
Raw Materials 30 Days 2007 2133 2258 2383 2383
Finished Goods Stock 20 '' 10431 11083 11734 12386 12386
Bills Recievables 7 '' 3651 3879 4107 4335 4335
Stores & Spares 90 '' 6400 6400 6400 6400 6400
Total Requrement Working Capital 22488 23494 24500 25505 25505
Tk In
Means of Finance: '000'
Particulats Amount
1st 2nd 3rd 4th 5th
Year Year Year Year Year
Funded WC Limit (70%) 15742 16446 17150 17854 17854
Euity (30%) 6747 7048 7350 7652 7652
Total req. Working Capital (Funded) 22488 23494 24500 25505 25505

Assumptions:
Operation Period: (days) 240
Finished Goods Stock: (days) 7
Page3
Cost of Goods Sold
Tk. In
"000"
Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year
Capacity tilization 80% 85% 90% 95% 95%
Raw Materials Purchase 16057 17060 18064 19067 19067
Factory Salaries & Wages 5404 6316 7295 8342 8984
Utilities 74959 74961 74962 74964 74964
Docking, Undocking & Spares
Cost: 5000 5000 5000 5000 5000
Stores & Spares 6400 6400 6400 6400 6400
Repairs & Maintenance 6400 6400 6400 6400 6400
Depreciation 35200 35200 35200 35200 35200
Rent, Tax & Insurance 6400 6400 6400 6400 6400
Other Manufacturing Cost 640 640 640 640 640
Cost of Goods Sold 156460 158377 160362 162414 163056

Page3
SALES ESTIMATE
Sales At 100% Capacity
S.L Quantity Rate Total
Item
MT in Tk (Tk.in"000")
Different Sea
1.00 110000 338800
Fish 3080
Total sales at 100% production Capacity in a Year 338800

Tk.in"000"
Particulars 1st year 2nd Year 3rd Year 4th Year 5th Year
Sales at Rated Capacity 338800 338800 338800 338800 338800
Cpacity Utilization 80% 85% 90% 95% 95%

Net Sales 271040 287980 304920 321860 321860

Page3
Assumption Underlying Cost:
Tk. In
"000"
2nd 4th 5th
Particulars 1st Year Year 3rd Year Year Year
1.00 Capacity Utilization 80% 85% 90% 95% 95%
2.00 Raw Materials 16057 17060 18064 19067 19067

3.00 Wages & Salaries :
Basic 5790 5790 5790 5790 5790
Increment @10% 0 579 1158 1737 2316
Bonus ( 2 months Basic) 965 1062 1158 1255 1351
Total 6755 7431 8106 8782 9457

4.00 Utilities:
Power/Gas 29 31 32 34 34
Fuel & Lubricant 74930 74930 74930 74930 74930
Total 74959 74961 74962 74964 74964

Docking, Undocking &
5.00 Spares Cost:
On Machineries @0.5% 5000 5000 5000 5000 5000

6.00 Stores & Spares:
On Machineries @1% 6400 6400 6400 6400 6400

7.00 Repairs & Maintenance:
On Machineries @1%, 6400 6400 6400 6400 6400

8.00 Rent, Tax & Insurance 6400 6400 6400 6400 6400
9.00 Depriciation:
Name of Asset Value Rate Amount
Machineries 640000 5% 32000
Vehicles 16000 20% 3200
Total 35200

10.00 Others Manufacturing overhead 640 640 640 640 640

Page3
Assumption
2.00 Raw Materials Tk.'000
No Price Total
SL Cost
3,080
1.00 Different Sea Fish M.T natural 0
Packing Materials (PP 22,400
2.00 bag) Lbs. 250.00 5600
3.00 Stacking Materials (Tray) 400 Pcs. 400.00 160
4.00 Processing & Washing 1,000
Material (Basket) Pcs. 400.00 400
5.00 Fresh Water 3,650
M.T 140.00 511
6.00 Voyage materials & Gear LS.
materials 8400
7.00 Food stock, LP gas & LS.
others 5000
Total= 20071
3.00 Factory Wages & Salaries : Tk.'000

salary
No / month Yearly
SL Salary
3.01 Operation Manager 2 40000 960
3.02 Tally Man 4 7500 360
3.03 Skipper 2 30000 720
3.04 Chief Engineer 2 25,000 600
3.05 Chief Officer 2 20,000 240
3.06 Second Officer 2 18,000 216
3.07 Junior Engineer 2 8,500 102
3.08 Boat Swan 2 8,500 102
3.09 Grasser 10 6,500 390
3.1 Cook 2 5,000 60
3.11 Asstt. Cook 2 4,000 48
3.12 Sailor (Skilled) 40 6,500 1560
3.13 Sailor (Semi skilled) 12 6,000 432
Total: 84 5790

Page3
Tk.
4.00 Utilities:Water Power & Fuel 000
Description Yearly
SL Cost
4.01 Water:Water will be available from own shallow tube-well 0
to be sunk at the project site.
4.02 Power: LS 36
4.03 Item
Diesel for Vassel 1020000 70 71400000
Lub Oil 14,000 250 3500000
Grease for machinery 200 150 30000
Total= 74930000 74930

Page3
GENERAL, ADMINISTRATIVE AND SELLING EXPENSES
1st 2nd 3rd 4th

Particulars Year Year Year Year 5th Year
Salaries & Allowance 1946 2141 2355 2590 2849
Remunaration 900 900 900 900 900
Printing & Stationery 10 20 30 40 50
Postage,Telephone, Talex & Fax 12 62 112 162 212
Travelling & Conveyance 30 40 50 60 70
License Renewal Fee 50 50 50 50 50
Office Rent 60 60 60 60 60
Depreciation/Written off 800 800 800 800 800
Audit & Rating Fees 100 100 100 100 100
Entertaiment 25 25 25 25 25
Total 3933 4198 4482 4787 5116
Assumption:
1.00 Depreciation and Write off:
Name of Asset Value Rate Amount
Furniture & Fixture 1000 20% 200
Prelim.& Pre-prod. Exp. 3000 20% 600
Total 800
Tk. In
3.00 Salaries & Allowance: "000"
1st 2nd 3rd 4th
Salary 1668 1668 1835 2018 2220
Increment @ 10% - 167 183 202 222
Bonus ( 2 months ) 278 306 336 370 407
Total 1946 2141 2355 2590 2849
Tk.in
4.00 Salaries of Admn. Staff '000'
Salary & Benefit Annual
Category of Staff No. Per Month Salary
1 General Manager 1 40000 480
2 Accountant 1 12000 144
3 Commercial 1 8000 96
Officer
4 Executive 2 8000 192
5 Store Officer 2 7000 168
6 Driver 5 7000 420
7 Peon 1 5000 60
8 Security Guard 2 4500 108
Total: 15 1668
Page3

Financial Expenses
Tk. in '000'
Yr-1 Yr-2 Yr-3 Yr-4 Yr-5
Interest on L/C Loan 64500 72627.0 68123 62904 56857
Interest on WC 1260 1316 1372 1429 1429
65760 73942 69495 64333 58286
Assumptions:
1. L/C Loan
Principal 430000 494500 466109 433214 395101
Installment 0 28391 32895 38114 44160
Balance 430000 466109 433214 395101 350940
Interest @15% per annum
on average balance 64500 72627 68123 62904 56857
3.Commmercial Bank Borrowing

Principal 15742 16446 17150 17854 17854
Interest @16% per
Annum 1260 1316 1372 1429 1429

Page3
EARNING FORECAST
Page3
Tk. In
"000"
1st 2nd 3rd 4th
Capacity 80% 85% 90% 95% 95%
Sales Revenue 271040 287980 304920 321860 321860
Gross Profit 114580 129603 144558 159446 158804
General, Admin. & Selling Expenses 3933 4198 4482 4787 5116
Operating Profit 110647 125406 140077 154659 153688
Financial Expenses:
Fixed 64500 72627 68123 62904 56857
Working
Capital 1260 1316 1372 1429 1429
Net Profit Before Tax 44888 51463 70582 90326 95402
Income Tax 15% 6733 7719 10587 13549 14310
Net Profit after tax 38155 43744 59995 76777 81092

Retained Earnings(Cumulative) 38155 81898 141893 218670 299762

Ratios(%):
Gross Profit to Sales 42% 45% 47% 50% 49%
Operating Profit to Sales 41% 44% 46% 48% 48%
Net Profit to Sales (before tax) 17% 18% 23% 28% 30%
Net Profit to Sales (after tax) 14% 15% 20% 24% 25%
Debt - Service Coverage Ratio (times) 0.00 1.50 1.62 1.73 1.71
Avarage Debt - Service Coverage Ratio 1.64
Debt Service Capacity

Tk. In
"000"
1st 2nd 3rd 4th
A. Source of Cash:
Net Profit 38155 43744 59995 76777 81092
Add:Interest 65760 73942 69495 64333 58286
Add Depreciation & Write off 35200 35200 35200 35200 35200
Cash Available to Pay liabilities 139114 152886 164689 176310 174578
B. Liabilities Payable in Cash:
Installment of Project Loan 0 28391 32895 38114 44160
Interest of W.C & Bank Charge 65760 73942 69495 64333 58286
Total Liabilities Payable in Cash 65760 102333 102390 102446 102446
C. Balance (A - B) 73355 50553 62300 73864 72132

Page3
SENSITIVITY ANALYSIS
EARNING FORECAST
(5% increase of Raw Materials Cost)
Tk. In
"000"
1st 2nd 3rd 4th
Sales/Export Revenue 271040 287980 304920 321860 321860
Gross Profit 106757 121684 136540 151325 150651
Financial Expenses:
Fixed 64500 72627 68123 62904 56857
Working
Capital 1260 1316 1372 1429 1429
Income Tax 15% 5560 6532 9385 12331 13087
Net Profit 31505 37013 53179 69875 74162


Ratios(%):
Debt-Service Coverage Ratio (times) 1.37 1.48 1.59 1.58
Page3
EARNING FORECAST
(10% increase of Raw Materials Cost)
Tk. In
"000"
1st 2nd 3rd 4th
Gross Profit 98934 113765 128522 143205 142499
Financial Expenses:
Fixed 64500 72627 68123 62904 56857
Working
Capital 1260 1316 1372 1429 1429
Income Tax 15% 4386 5344 8182 11113 11865
Net Profit 24856 30282 46364 62972 67232


Ratios(%):
Debt-Service Coverage Ratio (times) 1.44 1.55 1.66 1.64
Page3
EARNING FORECAST
(5% Reduce of Sales)
Tk. In
"000"
1st 2nd 3rd 4th
Gross Profit 101028 115204 129312 143353 142711
Financial Expenses:
Fixed 64500 72627 68123 62904 56857
Working
Capital 1260 1316 1372 1429 1429
Income Tax 15% 4700 5560 8300 11135 11896
Net Profit 26636 31504 47035 63098 67413


Ratios(%):
EARNING FORECAST
(10% Reduce of Sales)
Page3
Tk. In
"000"
1st 2nd 3rd 4th
Gross Profit 87476 100805 114066 127260 126618
Financial Expenses:
Fixed 64500 72627 68123 62904 56857
Working
Capital 1260 1316 1372 1429 1429
Income Tax 15% 2668 3400 6013 8721 9482
Net Profit 15116 19265 34076 49419 53734


Ratios(%):
DEBT SERVICE COVERAGE RATIO (times)

Page3
Tk. In "000"
Income Available to meet
Liabilities 1st Year 2nd Year 3rd Year 4th Year 5th Year
Net Profit 38155 43744 59995 76777 81092
Depreciation & Write off 36000 36000 36000 36000 36000
Interest on Term Loan & W. C 65760 73942 69495 64333 58286
Total 139914 153686 165489 177110 175378

Liabilities to Pay: 1st Year 2nd Year 3rd Year 4th Year 5th Year
Installment of Term Loan 64500 101018 101018 101018 101018
Interest on W .C Loan 1260 1316 1372 1429 1429
Total 65760 102333 102390 102446 102446

Debt Service Coverage Ratio
(times) 2.13 1.50 1.62 1.73 1.71
Average Debt Service Coverage
Ratio 1.74
If 5% Increase of Raw Materials

Cost 2.03 1.44 1.55 1.66 1.64
If 10% Increase of Raw Materials
Cost 1.93 1.37 1.48 1.59 1.58
If 5% Reduce of Sales 1.95 1.38 1.49 1.60 1.58
If 10% Reduce of Sales 1.78 1.26 1.36 1.46 1.44
Cash Flow Statement

Page3
Taka in
'000'
A. SOURCES OF FUNDS:
Const.yr 1st yr 2nd yr 3rd yr 4th yr 5th yr
Equity/Paid up Capital 230000 - - -
Operating Profit - 110647 125406 140077 154659 153688
Depreciation & Write-off 36000 36000 36000 36000 36000
Secured Long Term Loan 430000 - - - -
IDCP 0
Equity Margin for W/C 6747 - - - -
Return on Bond Purchase 0 0 0 0 0
Increase in Current Liabilities 15742 704 704 704 0
TOTAL A: 660000 169136 162109 176781 191363 189688
B.UTILISATION OF FUNDS:
Fixed Assets 657000 - - - - -
Preliminary &pre-operating Expenses 3000 - - - - -
Increase in current Assets 22488 1006 1006 1006 0
Repayment of Long term Loan - 0 28390.66 32894.8 38113.63 44160.37
Payment of Interest - 65760 73942 69495 64333 58286
Income Tax - 6733 7719 10587 13549 14310
TOTAL B: 660000 94981 111058 113982 117001 116756
Cash Surplus/Deficit (A-B) 0 74155 51051 62798 74362 72932
Opening Balance of Cash 0 0 74155 125206 188004 262366
Closing Balance of Cash 0 74155 125206 188004 262366 335298
PROJECTED BALANCE SHEET

Page3
A. Assets:
Current Assets Taka in '000'

Const.yr 1st yr 2nd yr 3rd yr 4th yr 5th yr
Cash/Bank Balance 74155 125206 188004 262366 335298
Other Current Assets 22488 23494 24500 25505 25505
Total Current Assets 0 96643 148700 212504 287871 360803

Fixed Assets
Pre-operating Expenses 3000 2400 1800 1200 600 0
Fixed Assets(net) 657000 621600 586200 550800 515400 480000
Total Fixed Assets 660000 624000 588000 552000 516000 480000
TOTAL ASSETS 660000 720643 736700 764504 803871 840803
B. Liability & Capital
Liability
Commercial Bank Borrowing 15742 16446 17150 17854 17854
Long Term Loan 430000 430000 466109 433214 395101 350940
Total Liabilities 430000 445742 482555 450364 412954 368794

Capital /Equity
Capital/Equity 230000 236747 236747 236747 236747 236747
Retained Earnings 0 38155 81898 141893 218670 299762
Total Equity 230000 274901 318645 378639 455417 536509
Total Loan & Equity 660000 720643 801200 829004 868371 905303

BREAK EVEN ANALYSIS
Tk. In lack
1st 2nd 3rd 4th
Capacity tilization 80% 85% 90% 95% 95%
Sales 271040 287980 304920 321860 321860
Fixed Cost:
Page3

Utilities 18740 18740 18741 18741 18741
Docking, Undocking & Spares Cost: 5000 5000 5000 5000 5000
Stores & Spares 6400 6400 6400 6400 6400
Depreciation 35200 35200 35200 35200 35200
Salaries & Allowance 1946 2141 2355 2590 2849
Remunaration 225 225 225 225 225
Financial Expences 64500 72627 68123 62904 56857
Sub Total 137992 146435 142274 137425 131732
Variavle Cost:
Utilities 56219 56220 56222 56223 56223
Remunaration 675 675 675 675 675
Financial Expences 1260 1316 1372 1429 1429
Sub Total 88050 89972 91955 93998 94616
Total 226042 236407 234228 231424 226348
Break- Even Point:

P/V Ratio = 0.6751 0.6876 0.6984 0.7080 0.7060
BEP (Sales) = 204390 212973 203705 194117 186580
BEP at Rated Capacity = 75% 74% 67% 60% 58%
BEP at Assumed Capacity = 60% 63% 60% 57% 55%
ESTIMATE OF IRR
Taka in
Page3
'000'
Year Total Total Cash Net Cash Present
Cash Value at
out flow in flow in flow 20% 25%
(66000
0 660000 0 (660000) (660000) 0)
10224
1 18838 146647 127810 106508 8
2 777 161406 160628 111547 102802
3 777 176077 175299 101446 89753
4 777 190659 189881 91571 77775
5 0 189688 189688 76231 62157
6 0 189688 189688 63526 49726
7 0 189688 189688 52938 39780
8 0 189688 189688 44115 31824
9 0 189688 189688 36763 25460
10 0 242858 242858 39223 26077
63870 (52398)
Internal Rate of Return

(IRR)= 23%
Assumptions:
1.The economic life of the project has been taken into estimation for
fifteen years.
2.The fixed cost of the project has been taken
(excluding
interest to be incurred during
construction period) = 6600.00 Lac
3.Benefit of the project has been
estimated as bellow :
(net profit after tax + non cash expenses i.e. operating
profit)
Benefit:
Operating
Year Profit Depreciation Total
& write off
1 110647 36000 146647
2 125406 36000 161406
3 140077 36000 176077
4 154659 36000 190659
5-10 153688 36000 189688
contd..
Recovery Value of
Capital:
Land 100% 0
Building 10% 0
Machinery 5% 32000
Inventories 100% 21170
Page3
53170
Inventories
1st year 18838
2nd year 777
3rd year 777
4th year 777
5th year 0
21170
Repayment
Tk. In "000"
Principal Amount 430000
IDCP 0
Rate of Interest 15%
Grace Period 12 months.
Period of Loan 10 years (including Grace 1 year Period )
Interest on Grace Period For Const. Period = 0
Page3
After Const. Period = 64500

Amortized Amount 494500
Capital Recovery Factor 0.05107
Installment 25254
Mode of Repayment Project : 36 Equal quarterly installment of Tk. 252.54lac each.
Repayment Tk. In
Schedule "000"
No. of
Installment Interest Principal Installment
0 0
1 18544 6711 25254
2 18292 6962 25254
3 18031 7223 25254
4 17760 7494 25254
5 17479 7775 25254
6 17188 8067 25254
7 16885 8369 25254
8 16571 8683 25254
9 16246 9009 25254
10 15908 9347 25254
11 15557 9697 25254
12 15194 10061 25254
13 14816 10438 25254
14 14425 10830 25254
15 14019 11236 25254
16 13597 11657 25254
17 13160 12094 25254
18 12707 12548 25254
19 12236 13018 25254
20 11748 13506 25254
21 11242 14013 25254
22 10716 14538 25254
23 10171 15084 25254
24 9605 15649 25254
25 9018 16236 25254
26 8410 16845 25254
27 7778 17477 25254
28 7122 18132 25254
29 6443 18812 25254
contd.
No. of
Installment Interest Principal Installment
30 5737 19517 25254
31 5005 20249 25254
32 4246 21009 25254
Page3
33 3458 21796 25254

34 2641 22614 25254
35 1793 23462 25254
36 913 24342 25254
414659 909159
CO= Commercial Operation
Contribution To GDP
Tk 000
1st Year 2nd Year 3rd year 4th year 5th year

Page3
A. Net Sales 271040 287980 304920 321860 321860

B. Less inter-firm

transaction
Utilities 74959 74961 74962 74964 74964
Stores & Spares 6400 6400 6400 6400 6400
Postage, Telephone, Talex &
Fax 12 62 112 162 212
Docking, Undocking & Spares
Cost: 5000 5000 5000 5000 5000
Total B 115368 116443 117518 118594 118664
Total Contribution to
GDP(A-B) 155672 171537 187402 203266 203196
Section - V
Economic Aspects
01 ADDITIONAL EMPLOYMENT GENERATION AND LABOUR INTENSITY:
The proposed project expects to provide permanent employment throughout the year 99 nos.
Page3
Workers, Technicians, administrative and commercial staffs. This will marginally alleviate the
local unemployment situation and the employees gain a livelihood for themselves and their
families. Besides this, the proposed project will create huge indirect employment.
02 : LINKAGE EFFECT :
It will have forward & backward linkage effect on the society in the essence that, it will help the
Packing, Stacking and Processing & Washing material manufacturing industries using latest
technologies. This positive factor will also help achieving self-reliance of the economy in the
days to come. It will also create opportunity for development of forward & backward linkage
industries.
03 CONCLUSIONS:
As evaluation of the Socio-economic, Private & national benefits, which expected to accrue from the
implementation of this project & continuous execution of its operational activities will easily highlight the
rational & economic justification of establishing this Unit. The project is expected to generate very
substantial financial returns for the promoters; all methods of project appraisal & analysis, financial,
management & economic evaluation justify the establishment & implementation of this unit. The unit will
be able to pay income tax. Such levies & taxes will help to enhance the Governments funds, available for
public sector development expenditure.

Annexure- III (A)
Description & cost of the proposed vessel
(Tk. In ‘000’)
Page3
Sl. No. Item Qty. Unit Price, Tk Total Price, Tk.

1. 2nd Hand / reconditioned Steel Hull Deep 2 Nos. 320000/- 640000/-
Sea mid water Fishing vessel including
Gear equipment and Navigation & Safety
equipment.
Specifications:
a) Body :
Length Over all = 39.88 Meter.
Breadth Over all = 7.20 Meter.
Depth (modified) = 3.60 Meter.
Draught (loaded) = 2.80 Meter.
Gross Tonnage = 222.00 Tons
Net Tonnage = 80.00 Tons
Year of Mfg. - 2005
Country of origin - China
b) Engine:
Speed of vessel = 11.8 Knots per hour.
No. of Engine : 1 No.

Engine Power : 848 BHP
Engine Type : Caterpillar Diesel
Engine.
Country of : USA
origin
RPM : 1,800
No. of : 12
Cylinders
No. of Main : One
shafts
Dia. Of shaft : 150 mm
Page3
Annexure- III (A) Contd.
c) Capability :
Fish freezing capacity : 25 MT/day
Fish storage capacity : 110 MT
Fresh water preserve capacity : 60 Tons
Fuel consumption : 2,800 Lt./day
d) Navigation & Safety Equipment (each
vessel):
- Radar
- Sounder
- Sonar
- GPS
- VHF/FM
- Plotter
- Thermometer/Hygrometer
- Inclinometer
e) Safety Equipment & Fire fighting :
- Life Rafts – 2 nos.

- Life Jackets – 45 nos.
- Life Buoys – 12 nos.
- Fire Pump – 1 set
- Dry Chemical – 4 nos.
- CO2 – 2 nos
- Foam – 2 set
f) Gear Equipment:
- Trawl Net – 3 Sets

- Trawl Door – 4 sets
Total: 640000/-
Say, Tk. Sixty Four Crore.

Page3
Annexure – I
Fixed Cost of the Project
(Tk. In ‘000’)
Sl.no Item Cost Invested, Cost to be Total

Tk Invested, Tk.
1. Steel Hull Fishing Vessel - 640000 640000
(2 nos.)
2. Vehicle - 16000 16000
3. Furniture, fixture & office - 1000 1000
equipment including
interior decoration
4. Preliminary & Pre- 500 2500 3000
operating Expenses
includes:
Consultancy fees, Vat,
Insurance, Survey cost,
Registration, Legal &
documentation etc.
Total: 500 659500 660000/-
Say, Tk. Sixty Six Crore.
Page3
Term Loan Period = 10 years including 1 year grace period
Debt: Equity = 70: 30
Page3

South Bay Marine Profile

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

South Bay Marine Profile

Uploaded by

Copyright:

Available Formats

FEASIBILITY STUDY

M/S. SOUTH BAY MARINE

21, GOLAP SING LAIN

Prepared by: Company Management

a) Name of the Applicant : Mohammed Fakruddin Ahmed

3. Brief of the Sponsors:

M/S. South Bay Marine

4. Particulars of the Sponsors:

The project is being promoted by the following person:

Name and Address Father’s/ Mother’s/ Academic Status Extent

He has the following Advanced/Ancillary Training Courses:

- Advance Training in Fire Fighting

M/S. South Bay Marine

a) Name of the Project : M/S. South Bay Marine

6. Constitution of the Firm:

7. Management & Organizational Set -up:

Sl. No Item Annual Capacity

Assumptions underlying to estimate the capacity:

Raw Material Requirement:

Sl. No. Item Quantity Source

i) Packing Materials: 400 Lbs /voyage/vessel

Specification of the Vessel:

Specifications of the proposed 2 Nos. Fishing vessels are as follows :

a) Body (each vessel) :

Length Over all = 39.88 Meter.

b) Engine (each vessel):

No. of Engine : 1 No.

Speed of vessel = 11.8 Knots per hour.

c) Capability (each Vessel) :

Fish freezing capacity : 25 MT/ day

d) Navigation & Safety Equipment (each vessel):

M/S. South Bay Marine

- Life Rafts – 2 nos.

f) Gear Equipment (each vessel):

- Trawl Net – 3 Sets

Technical Know How:

Accommodation is for 42 persons / vessel.

M/S. South Bay Marine

Preliminary and Pre-operating Expense:

Furniture, Fixture & Office equipment:

Docking, Undocking & Spares Cost:

Stores & Spares:

Repair & Maintenance:

Fuel & lubricants

i) Diesel oil : 1020,000 Litre

Man Power Requirements

(a) Technical Staff:

Sl. No. Catagory Nos.

Sl. No. Catagory Nos.

Total Man Power Requirements (a + b) = (84 + 15) = 99 Persons.

Project Implementation Schedule:

M/S. South Bay Marine

Sl. No Item Annual Capacity

Products & its Uses:

M/S. South Bay Marine

Sl. Item Unit Avg. Unit

Price of Raw materials:

Sl. Particulars Unit Unit Price in

M/S. South Bay Marine

Year Quantity Total

Source: Bangladesh Economic Survey 2010

M/S. South Bay Marine

Summary of Financial Aspect: