PP Final 2020

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Rokeya Automatic Rice Mills Ltd. Investment

Financial Feasibility
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PRE – INVESTMENT
FEASIBILITY STUDY REPORT
ON
Rokeya Automatic Rice Mills Limited

Jamtala Bazar, Anmura, Chapai Nawabganj
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P R E - I N V E S T M E N T F E A S I B I L I T Y R E P O R T
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Executive Summery
This Project Profile consist the Existing capacity of 269280 M.ton and Proposed
another 269280 M.Ton Total of 538560 M.ton of Miniket and Aromatic Rice
production situated in Jamtala, Amnura, Chapai Nawabganj.
Rice is the staple food of about 135 million people of Bangladesh. It provides
nearly 48% of rural employment, about two-third of total calorie supply and about
one-half of the total protein intake of an average person in the country. Rice sector
contributes one-half of the agricultural GDP and one-sixth of the national income in
Bangladesh.
Almost all of the 13 million farm families of the country grow rice. Rice is grown
on about 10.5 million hectares which has remained almost stable over the past three
decades.
About 75% of the total cropped area and over 80% of the total irrigated area is
planted to rice. Thus, rice plays a vital role in the livelihood of the people of
Bangladesh.Total rice production in Bangladesh was about 10.59 million tons in
the year 1971 when the country's population was only about 70.88 millions.
However, the country is now producing about 25.0 million tons to feed her 135
million people. This indicates that the growth of rice production was much faster
than the growth of population. This increased rice production has been possible
largely due to the adoption of modern rice varieties on around 66% of the rice land
which contributes to about 73% of the country's total rice production.However,
there is no reason to be complacent. The population of Bangladesh is still growing
by two million every year and may increase by another 30 millions over the next 20
years. Thus, Bangladesh will require about 27.26 million tons of rice for the year
2020. During this time total rice area will also shrink to 10.28 million hectares.
Rice yield therefore, needs to be increased from the present 2.74 to 3.74 t/ha.
To combat the future situation we will need to consider:
 Replacement of local varieties by modern varieties in T. aman season where
possible.
 Limited increase in modern variety boro area.
 Replacement of the present varieties by superior inbred, hybrid and super
high yielding varieties.
 Increment of irrigation areas in both boro and T. aman season.
 Application of superior resource management technologies.
 The use of quality seeds.
 Mechanization of rice cultivation particularly minimization of post harvest
losses.
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TABLE OF CONTENTS
SL No. Description Page

1. Summary of the project 04 - 06
2. Introduction 07 –08
3. Management Aspects 09 – 11
4. Technical Aspects 12 – 19
5. Implementation Schedule 20- 20
6. Market Aspect 21 – 27
7. Economic Aspect 28- 28
8. SWOT Analysis 29 – 30
9. Project Benefit 31- 31
10. Financial Analysis (Annxure) 32-48
SUMMARY OF THE PROJECT
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01. Name of the project : Rokeya Autmatic Rice Mills Limited
02. Location of the project : Jamtala Bazar, Anmura, Chapai Nawabganj.
03. Head Office : Al-Razi Complex, Suit No. 205-206 (2nd Floor), 166-
167 Shaheed Syed Nazruk Islam Sarani, Purana Paltan,
Dhaka.
04. The project : The proposal envisages setting up of a Auto Rice Mills at
Jamtala Bazar, Amnura, Chapi Nowabgonj. in the name of
ROKEYA AUTO RICE MILLS Ltd. The project will be set
up for production of rice. The project has been designed on
the basis of both imported and local machinery. The
machinery of the project will be Brand new and has been
proposed to be imported from India, Europe and procured
from local sources. After implementation of the scheme, the
unit would create job opportunity for 100 personnel of
different categories. Total fixed cost of the project has been
estimated at Existing Running auto rice project 369.46 crore
Tk.+ propose 402.89 crore Tk Total 772.36 Crore Tk..
05. Product mix & capacity : The milling capacity of the project has been estimated
4,99,200 MT paddy.
06. Implementation plan : The project has been designed to be implemented with financial
assistance from bank and equity capital of the sponsors.
07. Investment proposal : Sanction of Long Term investment of Tk. 280.00
Crore for the establishment the extended and BMRE
of the project including IDCP and Tk. 600.00 Crore
of Working Capital (Cash Credit) for smooth operation
of the business.
08. Land : The project is located on a piece of land measuring

841.663 decimal. The value of land has been
estimated at Tk. 236.31 crore including cost of
registration in the name of the company.
09. Factory Shed and other : The value of the factory shed and other civil works
civil works has been estimated at Tk. 50.81 Crore including
electrification, sub-station, machinery room, office
room, raw materials go down, boundary wall etc.
10. Machinery to be : Such as marine insurance, L/C commission, PSI fee,

Imported C&F charge, inland carrying cost etc for which an
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amount of Tk. 143.43 crore has been worked out.
11. Technical services and : The technologies involved in manufacturing of

quality control Carded cotton yarn are available in the country. A
number of such units have been in operation with
usual as well as advanced machinery and equipment
for the last few years. As such, skilled manpower has
already been developed in this sector. It is, therefore,
expected that no problem will be faced by the project
regarding smooth operation as well as proper quality
control.
12. Erection and installation : Machinery will be installed, commissioned & taken
into oper ation under direct supervision of the
erectors to be deputed by the respective supplier. An
amount of Tk. 19.71 Crore has been earmarked for
the purpose of civil, mechanical and electrical works
for erection of the same.
13. Employment generation : Job opportunities for 100 more personnel of various
categories.
14. Contribution to GDP : The project will contribute Tk. 200.83 Crore per
annum to the GDP.
16. Debt service coverage : The debt-service coverage ratio of the project works
ratio (DSCR) out to 2.17, 2.29, 2.40, 2.52, & 2.65 times during the
first five years of projected operation of the project.
17. Break-even point (BEP) : The project is expected to break-even at 48% of the
rated capacity utilization with sales volume of
Tk.1637.03 crore.
19. Cash/fund flow statement : The cash flow statement based on the profitability
estimate is shown in financial aspect. The projection
indicates that the concern will have adequate cash
generation to meet all the operational expenses, pay for
its investment-obligation and a reasonable surplus to
pay dividend, etc.
20. Projected balance sheet : The projected balance sheet of the company is shown
in financial aspect. The concern is expected to maintain
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a healthy financial position during the operational life.
21. Sensitivity analysis : The critical variables to which the financial viability
of the project is sensitive have been identified to be
cost of production and price of output. Necessary
sensitivity has been made and the project withstands
the tests.
22. Conclusion : The project proposal is found technically feasible,
socially and economically desirable, financially
rewarding and commercially viable. The project
proposal may, therefore, be considered suitable for
funding & investment.
23. Profitability & Result of Financial Analysis
The year – wise operating profit of the project on completion and the results
of financial analysis are shown as follows :
Tk. In ‘lac’
1st Yr 2nd Yr 3rd Yr 4th Yr 5th Yr
Net Profit 11862.92 13199.27 14541.77 15891.10 17399.39
25. Assumption :
a) Rate of Profit : 9% on Term Investment and 9% on Working

Capital.
b) Repayment period : 12 Years including grace period.
Term Investment
c ) Grace period : 18 months.
PROJECT INTRODUCTION
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Rokeya Automatic Rice Mills (pvt) Limited started its business as private limited
company in January 2002 and started its commercial operation in 2003. The company
sales its product under the brand name “ROKEYA” Presently the company is running its
operation with modern technology and equipment.
Mission Statement
To realize this vision, we have a concept of three pillars, which are
1. Customers satisfaction.
2. Continuous Improvement.
3. Environmentally friendly processing.
To Ensure that we bring products to the market that is superior in both quality and
taste, Rokeya Automatic Rice Mills Ltd. Is continuously innovating with modern
technology, environmentally friendly production and reliable export services.
Customer satisfaction is our first priority.
Vision Statement
Rokeya Automatic Rice Mills ltd. always strives to improve in order to bring our
customer a product that is superior in both quality and taste and meets customer’s
satisfaction. Our mission is to be the very best in product quality.
Core Values
We are a customer-oriented company and believe in developing strong, positive and
long-lasting relationships with all our partners. We are honest and fair with suppliers,
customers and other concern parties.
Objective of the Project
The objectives of our project are given bellow:

1. Disseminate latest appropriate technology and product innovations.
2. To create employment.
3. To produce quality products for our customers.
Methodology
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1. Basic data would be analyzed at the very beginning of the Project.

2. The next step is to analyze different technical aspects of Automatic Rice Mill
Industry.
3. To analyze the market demand and prospect of such product.
4. Next step is to financial appraisal. In this step financial feasibility study of the
project will be accomplished. In this step Fixed Cost of the Business, Financing
Plan, Working Capital Assessment, 5 years Earning Forecast, Sales Revenue,
Sensitivity Analysis ( 5% increase in cost of production, 5% decrease in Sales),
Raw Material Estimate, Cost of Goods Sold (COGS), Break-Even Analysis (BEP),
Debt Service Coverage Ratio (DSCR), Forecasted Cash Flow (CF), Projected
Balance Sheet (BS), Internal Rate of Return (IRR) will be determined.
5. Final step is to assess SWOT Analysis, Socio-economic and Environmental
implications of the project.
MANAGEMENT ASPECTS
Introduction
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The feasibility study scheme has been made covering organizational, technical, economic
and financial aspects. The capital outlay of the project has been estimated at Tk.759.35
Crore excluding net working capital. Based on Financial Assistance from Bank and
sponsor’s equity, the viability tests as worked out in this feasibility report based on some
standard and acceptable parameters.
Equity mobilization
The sponsors are expected to be capable of mobilizing their part of equity required to be
invested in the project, which will be available from earnings of business concerns and past
savings.
Corporate Set-Up, Promoters and their background

The project is a Private Limited Company in the name & style of Rokeya Automatic Rice
Mills Ltd The project is being promoted by a group of 2 (Two) persons who are highly
educated and well known professionals. They are well educated as well as have enough
experience in running and managing of a number of industrial concerns and trading
businesses. Considering their educational background and business experience, it is
expected that they will be able to implement the Project scheme satisfactorily & operate
smoothly. The particulars of the Directors with position and extend of shareholding are as
under:
Name of the Sponsors Address Status Share

1Md. Saiful Islam Vill-Charjoat Protab.
Managing 80%
F/o:Alhaj Abul Kasem Biswas P.O- Nowabgonj.
Director
Vill: charjoat Protab, Noababgonj P.S- Nowabgonj. 520800
Profession: Business. Dist-Chapai Noabgong. share
Division-Rajshahi.
Name of the Sponsors Address Status Share
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2. Mosa: Tohmina Begum Vill-Charjoat Protab.

Chairman 20%
W/O: Md, Saiful islam P.O- Nowabgonj.
Vill: Charjoat Protab. P.S- Nowabgonj. 130200
Profession: Business. Dist- Nowabgonj. share
Total Shair 100%= 100%

651000
share
Legal structure of the proposed company :
The overall management during implementation and on completion of the project will be
vested with the Managing Director. He will assume overall responsibilities of running the
day to day operation and administration of the company with sufficient executive and
financial power. The Board of Directors of the project at the moment acquired sufficient
knowledge and skills in this line of business. He will be assisted by the expert Engineers
and technical personnel.
Background and Business Experience of the Directors
Md: Saiful Islam, Managing Director
Md: Saiful Islam, aged 52, is the Managing Director of the company. He archived a
Bachelor of commerce degree. He has been Experience of Automatic rice Mills, Automatic
Flower Mills, Construction and Builders, Food processing industry, Importer and Exporter
All kind of food items. He is a professional suppler of Director General Defense Parches
(DGDP), Trading Corporation of Bangladesh (TCB), and Enlisted Food Item supplier of
World program (WFP), Red Crescent Society or Red Cross Society. He has earned adequate
knowledge in business by way of involving with his own business. He has been highly
Experience of Rice Husking Traditional Business before 26 years. He is a highly Professional
Businessman 0f several category Business. He has gathered Knowledge in Agriculture, AQA
culture, Horticultures Business before 31 Years. He is an Expertise and Successful
Businessman and his operations his all Business Carefully Operate Smoothly.
Tohmina Begum, Chairman
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Tohmina Begum, aged 41, she is the Chairman of the company. She archived a Bachelor of
commerce degree. She has been Experience of Automatic rice Mills, Automatic Flower
Mills, Construction and Builders, Food processing industry, Importer and Exporter All kind
of food items. She is a professional suppler of Director General Defense Parches (DGDP),
Trading Corporation of Bangladesh (TCB), and Enlisted Food Item supplier of World
program (WFP), Red Crescent Society or Red Cross Society. He has earned adequate
knowledge in business by way of involving with his own business. He has been highly
Experience of Rice Husking Traditional Business before 10 years. He is a highly Professional
Businessman 0f several category Business. He has gathered Knowledge in Agriculture, AQA
culture, Horticultures Business before 31 Years. He is an Expertise and Successful
Businessman and his operations his all Business Carefully Operate Smoothly.
The over all management of the company would be vested with the Board of Directors. The
Managing Director will be the Chief Executive and will be responsible to look after the day-
to-day management and administration of the company under the broad policy/guidelines of
the company. Besides, the Management of the Company will be assisted by a team of
qualified and experienced professional personnel.
TECHNICAL ANALYSIS
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Purpose and design:

The project will be set up for production of rice. The project has been designed on the basis
of both imported and local machinery. The machinery of the project will be Brand new and
has been proposed to be imported from China and procured from local sources. After
implementation of the scheme, the unit would create job opportunity for Total 100 personnel
of different categories. Total fixed cost of the project has been estimated at Tk. 759.35 crore
Product mix and Production capacity:

The product mix and annual production capacity of the project based on 3 shifts operation of
8 hours each per day and 330 working days in a year is given below:
Existing Proposed Total

Sl. No. Item M.Ton M.Ton M.Ton
01. Miniket 166320 177408 343728
02. Aromatic 55440 44352 99792
03. rice bran 16632 17741 34373
04. rice bran (Aromatic) 5544 4435 9979
05. Brocken Rice 19008 20275 39283
06. Brocken Rice (Aromatic) 6336 5069 11405
Total 269280 269280 538560
Boiled rice, rice polish and fine husk will be sold, while husk will be burnt for generation of steam for
boiler .
Existing
01. Working hours per day(Continuous Process) : 24 hours
02. No. of shifts per day : 3 Shifts
03. Working days per annum : 330 Days
04. Milling capacity per annum : 316800 MT of paddy
Proposed
01. Working hours per day(Continuous Process) : 24 hours
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02. No. of shifts per day : 3 Shifts

03. Working days per annum : 330 Days
04. Milling capacity per annum : 316800 MT of paddy
Manufacturing process:
The technology involved in paddy crushing in automatic rice mills are cleaning, socking, par
boiling, drying and milling. Paddy is usually milled without boiling or after boiling and drying.
The process flow diagram is given below
Process Flow Diagram
Cleaning of Paddy Drying
Per Boiling
Drying in Automatic Dryer
Rice Polish Crushing/Milling Husk
Rice
Packing
Delivery
Land and Location:

The location of the project has been selected in view of availability of adequate quantum
of paddy in and around the location. Rajshahi,Chapai, Nowabgonj ,Bogra, Rangpur,
Dinaspur are paddy growing areas where sufficient quantity of paddy are produced and
available for consumption as well as crushing in the automatic rice mill. The project has
been proposed to be located at Jamtala Bazar, Amnura, Chapai Nowabgonj The are Chapai
Nowabgonj of land will be existing 354.94 decimal and proposed 486.69 decimal tatal
841.63 decimal. The land is attached to Amnura, to Chapai Nowabgonj Road. The cost of
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land has been estimated at @Tk. 121.48 crore as per prevailing market price. The land is
almost developed All infrastructural facilities like water, power, road, drainage, etc. are
available near the project site. So, the land is considered adequate and suitable for the
proposed project.
Building and other Civil Works:

The project has been proposed to be housed in rcc and semi pucca on the above land. It
includes rice milling shed, office building and rice godawn . The covered area of the building
has been considered adequate enough to accommodate all types of machinery and equipment
and to allow the working persons for easy movement during production. The cost of building
and other civil works has been estimated at Tk. 3756.20 Lac. Details of building and other
civil works has been shown in Annex – 2.
Machinery and Equipment:
Imported:
The existing project consist of 30TPH Parboiled Processing Line and 10TPH Aromatic
processing line. Which including imported machinery like Main Machine, Color sorter, 24
Nos items Accessories, 16 TPH Dryer, Perboiling Accessories, Boiler, pre cleaner section .
The price of existing imported machinery $35,30,000 and $12,75,000 total costing
$48,05,000.
The project will be equipped with paddy milling plant to be imported from
Japan/China/Vietnam/India. The machineries are Self-balanced Vibrante Sifter (Cleaner),
Destoner, Automatic Pneumatic Husker, Paddy Separator, Thickness Grader, Length Grader,
CCD Color Sorter, Air Compressor, Packing Scale, Cyclone
Separator, U Type Screw Conveyor, Centrifugal Fan, Intake Hopper and Steel Grating,
Prefabricated spout, Electrical Control equipment, Design, Paddy Receiving Section, Paddy
Soaking and Cooking Section, Paddy Drying Section, Water Prepared Section and husking
installation accessories.
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Proposed section including 32 Ton Per Hour Perboil paddy process line and 8Ton per Hour
Aromatic paddy process line. the required Imported machine Costing CFR cost $88,51,712
and $13,50,000 Total $10,201,712.
Local:
In addition to the above imported machinery the project will also require Sub-station
equipment of 4000 KVA, Deep Tube well with pump & Motor, Fork Lift, Diesel Generator
of 1000 KVA, Weighing scale, Trolley, Cable Tray, Fire fighting equipment, etc. The above
machinery has been proposed to be procured locally. The cost of local Machinery and
equipment has been estimated at Tk. 4143.00 lac more .
Erection & Installation:

The installation of machinery are very easy and well known in the country. The machinery
will be installed by the local erectors. The erection & installation cost has been considered at
Tk. 1350.00 Lac
Technical Services and quality control:

The technology involved in processing of paddy in automatic rice are well known to the
technical persons available in the country. Moreover, the sponsor are experienced
businessman and hence, no problem is anticipated in this regard. Experienced and skilled
technical personnel will be recruited for smooth operation and maintenance of machinery.
Raw Materials :
Paddy will be basic material for production of rice. Paddy will be procured from Chapi
Nowabgonj, Rajshahi, Nawga and Dinajpur. Stock of paddy will be maintained for 120 days,
so that the project’s production is not interrupted due to shortage of paddy. Paddy will be
purchased at the prevailing market prices. At present For Miniket paddy is selling @Tk.
40,000.00 and aromatic paddy is selling
@Tk. 60,000.00 per metric ton in the paddy growing areas of, Rajshahi , Bogra, Rongpur,
Dinajpur. The annual requirement of paddy and woven bag are given below:
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SL Unit Quantity
No.Item
s
01. Paddy MT 491040
02. Paddy Pc 142560
03. Jute Bag (50Kg.) Pc 5660928
04. Jute Bag (20Kg.) Pc 5448643.5
05. Jute Bag (10Kg.) Pc 4835376
06 PP Bag, Sewing &
Others Lum-sum
Utilities:
Power:
The connected load of the project has been at 5750 KVA. For generation of electricity, the
project will install Turbine of 1 MW capacity which will supply the required power to the
project. In will also have REB line. It will procure one Diesel generator of 1320 KVA for
emergency use.
Water:
The project will require water for factory and domestic use. The required water will be
available from deep tube well to be sunk at the project premises.
Steam:
The project have 2 boiler and proposed 2 more boiler . All steam requirement of the project
will be fulfilled by this boiler. Steam will be generated through burning of husk available
from the rice mill.
Fuel & Lubricant:
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The project will require fuel and lubricant. The requirement of fuel and lubricant per
annum has been shown as under:
Items Tk in lac
Diesel for Generator 60.00
Petrol for Covered Van 24.00
Transportation:
The existing project has 4 Motorbike, 1 microbus, 1 CRV,11 Truck. For transportation of
rice, the project will have more 50 Truck of 5.0 ton capacity each. The cost of transport has
been estimated at Tk. 2150.00 Lac.
Office Furniture, Fixture & equipment:

The project will require office equipment, furniture, and fixture, etc. The cost for office
equipment and furniture fixture has been estimated at tk. 50.00lac Office furniture &
equipment.
Stores and Spares:

The project will require Stores & Spares for the machinery and equipment @0.5%, 1.0%,
1.5%, 2.0% and 2.0% of its cost for 1st, 2nd, 3rd, 4th and 5th year of operation respectively.
Repair and Maintenance:

The annual requirement of repair and maintenance for the machinery has been estimated at
@0.5%, 1.0%, 1.5%, 2.0% and 2.0% of its cost for 1st, 2nd, 3 rd, 4th and 5th year of operation
respectively. Repair & maintenance cost of building has been estimated @0.50% per annum.
Pollution Problem:
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The project will process paddy for production of rice. Byproduct will be rice polish, fire husk
and husk. Rice polish will be used for production of bran oil, fine husk will be used as cattle
& poultry feed to be sold to the feed meal, while husk will be burnt for generation of steam
for boiler. As such, it will have no residue for creating adverse impact on the environment.
Technical, Administrative Personnel & Laborers:
The requirement of technical and other personnel are as follows:
A. Technical:
Name of the Post No. of Post

01. General Manager 01
02. Manager 01
03. Foreman 02
04. Milling Operator 15
05. Helper 15
06. Quality Controller 06
07. Parboiling Operator 06
08. Packer+Helper 14
Total 60
B. Administrative:
Name of post No. of Post

01. Sales Man 10
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02. Accountant 02
03. Office Assistant 04
04. Driver 09
05. Cleaner 05
06. Peon 02
07. Guard 08
Total 40
Total : 60 + 40 = 100 Nos.
Schedule of Construction:
It is expected that the project will go into commercial production within 18 (Eighteen)
months from the date of placement of order for local machinery.
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Project Implementation Schedule
SL. NO. Description Time Schedule
01. Land and Land Development 0-lst Month
02. Signing of the Loan Agreement and other Legal 1st- 2nd Month
formalities
03. Construction of new factory and other shed & others Civil 2nd -8th Month
works.
04. Opening of L/C for Imported Machinery 3nd –4th Month
05. Shipment of Machinery 5th -6th Month
06. Arrival of Machinery at port. 7th -8th Month
07. Arrival of Machinery at Project Site 8th -10th Month
08. Procurement of Local Machinery 8th -10th Month
09. Erection and Installation of Machinery & Equipment 11th -14th Month
10. Recruitment of Manpower 15th -16th Month
11. Trial Run 17th Month
12. Commercial Production. 18th Month
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Market Aspects
01. Introduction:
Till now a substantial quantity of paddy produced in the country is being husked by ordinary
huller type husking mills. At present, ordinary husking mills are popular among the people.
In recent years, numerous husking mills have spread over the country. Even in small village
market, one can see at least one husking mill.
On the other hand, the demand for modern rice mills is also increasing steadily. Over the
recent years, quite a large number of modern rice mills with boiling and with/without drying
facility have been set up at different places of the country. The setting up of an automatic rice
mill may be justified on the following grounds:
a) The percentage of non-recoverable wastage is 2% in husking mills while the same is

about 1% in a modern rice mill.
b) The modern rice milling units are usually equipped with standard boiler for par-
boiling while the ordinary husking mills do not have this facility.
c) The modern rice mills are, in most cases, provided with dryer. As a result, these mills
do not have to depend on sun-drying while the ordinary husking mills do not have
any other alternative but to depend on sun drying. Therefore, the modern rice mills
take less time in drying. Moreover, their delivery schedule is more reliable.
d) Milling by modern rice mills ensures better quality, lesser breakage/cracks in rice and
longer period of storage.
02. Use and Users:

Cooking:
The varieties of rice are typically classified as long-, medium-, and short-grained. The grains
of long-grain rice (high in amylose) tend to remain intact after cooking; medium-grain rice
(high in amylopectin) becomes stickier. Medium-grain rice is used for sweet dishes, for
risotto in Italy, and many rice dishes, such as arròs negre, in Spain. Some varieties of long-
grain rice that are high in amylopectin, known as Thai Sticky rice, are usually steamed.
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Stickier medium-grain rice is used for sushi; the stickiness allows rice to hold its shape when
molded. Medium-grain rice is used extensively in Japan, including accompanying savoury
dishes, where it is usually served plain in a separate dish. Short-grain rice is often used for
rice pudding. Instant rice differs from parboiled rice in that it is fully cooked and then dried,
though there is a significant degradation in taste and texture. Rice flour and starch often are
used in batters and breading to increase crispiness.
Users:
Rice is the staple food of the South East Asian countries including Bangladesh. More than 80
crore peoples are taking rice as main food.
03. Requirement for Rice in Bangladesh:

The population of Bangladesh is still growing by two million every year and may increase by
another 30 millions over the next 20 years. Thus, Bangladesh will require about 27.26
million tons of rice for the year 2020. During this time total rice area will also shrink to
10.50 million hectares.
04. Production of Rice:

Rice is the staple food of about 135 million people of Bangladesh. Almost all of the 13
million farm families of the country grow rice. Rice is grown on about 10.5 million hectares
which has remained almost stable over the past three decades. About 75% of the total
cropped area and over 80% of the total irrigated area is planted to rice. Total rice production
in Bangladesh was about 10.59 million tons in the year 1971 when the country's population
was only about 70.88 millions. However, the country is now producing about 25.0 million
tons to feed her 135 million people. This indicates that the growth of rice production was
much faster than the growth of population. This increased rice production has been possible
largely due to the adoption of modern rice varieties on around 66% of the rice land which
contributes to about 73% of the country's total rice production.
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Directorate of Food also calculated that the annual production of rice in the country may be
to the extent of 3,35,00,000 MT.
05. Demand Analysis for Rice Mill:
The greater districts of Rajshahi are the paddy surplus zone as production of paddy in the
area normally exceeds the local consumption. The demand for a rice mill steams mainly from
the requirement of individual farmers, dealers and office of the controller of food. The annual
availability of paddy in the greater district of Rajshahi Division for the last 5 years was from
2014-2015 to 2018-2019 are detailed in Table – I.
Table – I
Production of Paddy in the Greater District of Rajshahi
Year Acre in Acres Production in MT

2014-2015 46,32,512 60,85,968
2015-2016 45,91,306 60,55,885
2016-2017 44,93,568 59,84,055
2017-2018 44,54,782 59,18,449
2018-2019 44,92,739 59,82,446
Yearbook of Agricultural Statistics-2015, 2017 and 2019
It appears from Table – I that area of land cultivated has increased from 12,80,000 acres in
2002-2003 to 13,90,000 acres in 2008-2009 showing a rise of 1.43%. The average area of
land cultivated was 13,12,000 acre. The production of paddy during the said period has
increased from 12,13,000 MT in 2002-2003 to 14,58,000 MT in 2008-2009. The average
annual increase was 3.36 percent. The average production of paddy during the period under
consideration was 12,96,000 MT.
According to Bureau of Statistics (Agricultural Census Wing, the Government of the

People’s Republic of Bangladesh, 90% of paddy is used for human consumption and the
remaining 10% goes as seed and wastage. On the basis of this assumptions, the availability of
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paddy stands at 11,66,000 tons, which is milled in the husking mills, semi-automatic and
automatic rice mills. Empirical observation suggests that about 25% of the total consumption
is normally made in the semi-automatic/automatic rice mills. Based on this assumption, the
total quantum of paddy available for milling in the semi-automatic/automatic rice mills has
been estimated at 2,91,000 MT.
06. Milling Capacity:
There are 25 major rice mills in the greater districts of Rajshahi. The daily milling capacity of
these mills stands at 98 metric ton. Based on 300 working days, the annual milling capacity
of 10 major rice mills has been worked out to 129,400 metric tons.
07. Supply Gap:
Considering the milling capacity and the availability of paddy left for milling by the major
rice mills, the supply gap has been worked out to 262,000 MT (291,000-29,000).
08. Sources of Paddy for Rice Mills:

Generally rice mills procure paddy fore crushing from three sources, viz (a) Food-grain
Traders, (b) Offices of Controller of Food, and (c) Purchase from the local market.
09. Procurement of Paddy by the Government:

With a view to providing price support to the growers of paddy, the governments have taken
a policy of purchasing paddy from the farmers at a fixed price. The procurement, storage and
maintenance of the paddy purchased by government are done by the respective district food
offices. They get the paddy milled from the mechanized and semi-mechanized rice mills in
the country.
The quantity of paddy procured by the Government depends mainly on the availability of
paddy and the difference between market price and procurement price.
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The procured paddy is stored in Government godowns. The existing godowns are not enough
for storing all the paddy procured. Therefore, the surplus paddy is stored in different public
buildings.
All the paddy procured and stored is not milled. A substantial quantity of it is distributed
through Food for works program. In addition to it, they may also purchase paddy from the
market, mill it and again sell it in the market.
10. Marketing Strategy:

To get a good market share, the sponsors should adopt requisite marketing strategies in
respect of product quality, product pricing, product packing, product promotion &
distribution. The requirements of buyer are to be met in terms of quality and price. It is stated
that entrepreneur are well efficient and gathered vast experience in this business.
10.01 Product Quality:
Quality of the product is considered to be the major determinant factor for ensuring good
market share. The consumers are not ready to sacrifice quality at any cost. Hence, the sponsor
of the project under consideration should always be alert about the production of the quality
products. To ensure this, the project will be equipped with the modern and sophisticated plant
and machinery. Moreover, the sponsor will recruit experienced and skilled technical & other
necessary personnel for smooth operation of the project and to produce quality products.
10.02 Product Distribution:

Since the prevailing market is very much competitive, the unit concerned should make the
consumers aware of their products by way of adopting appropriate promotional measures. At
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present different types of fine rice are being marketed through distributor. The distributors
supply it to the whole sale market and retail market. The users purchase fine rice from the
retail market.
10.03 Product Pricing:
Pricing of product is one of the important factors to capture market in the face of stiff
competition. Price is determined on the basis of demand and supply of the product in the
market. The prices of products are given below:
10.04 Price of Product:
Item Quantity Rate/ M.ton Total
Tk. In "000"
Miniket 343728 M.ton Tk. 65000.00 22342320
Aromatic 99792 M.ton Tk. 100000.00 9979200
rice bran 34373 M.ton Tk. 18000.00 618710
rice bran
(Aromatic) 9979 M.ton Tk. 20000.00 199584
Brocken Rice 39283 M.ton Tk. 20000.00 785664
Brocken Rice (Aromatic) 11405 M.ton Tk. 35000.00 399168
Total sales at 100% production Capacity in a Year 34324646
Raw Materials Price:
Tk. In "000"
Sl
No. Items Quantity Rate Amount
1 Paddy 491040 M.ton Tk. 40000.00 19641600
2 Paddy 142560 M.ton Tk. 70000.00 9979200
Jute Bag
3 (50Kg.) 5660928 pcs Tk. 65.00 367960
Jute Bag
(20Kg.) 5448643.5 pcs Tk. 35.00 190703
Jute Bag
(10Kg.) 4835376 pcs Tk. 30.00 145061
PP Bag, Sewing &
4 Others Lump-sum 21498.17
Total Cost of Raw Materials at 100% Production Capacity in a Year = 30346022
11. Locational Advantage:

The proposed project will be located at Jamtala Bazar, Amnura, Chapai Nowabgonj Sadar,
Chapai Nowabgonj. All infra-structural facilities like water, power, transport and
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communication are available there. So, the project will not face any problem in respect of
transportation of raw material and marketing of the finished products. As such, the project
will be able to utilize fully the location advantage.
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Economic Aspects
Employment Opportunity:
The project will require a total number of 100 persons of various categories. Cost per
employment after to be generated works out to
CONTRIBUTION TO GDP :
On completion, the project will add Taka 20082.61 lac to the Gross Domestic
Products of the country per annum as detailed below :
Tk in Lac
A) Net Sales (3rd Year) 274597.17
B) Less: Inter Firm Transaction :

Raw Materials 242768.18
Direct Wages 200.74
Utilities 1453.98
Spare parts, Repair & Maintenance 623.60
Rent, tax & Insurance 5.00
Depreciation & Written off 1380.04

Other Expenses 5.00
Financial Expenses 7442.63
General & Admin Exp. : -
Salary & Allowances 138.74
Postage, Telephone & Fax 3.00
Stationery & Printing 5.00
Traveling & Conveyance 4.00
Installment of IDCP 462.39
Depreciation & Written off 9.26
Other Expenses 13.00
Total 254514.56
C) Contribution to GDP (A-

B) 20082.61
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SWOT ANALYSIS:
It is one of the important steps in formulating a strategy. Its purpose is to develop good
strategy that exploit opportunities and strengths, neutralize threats and avoid weakness.
Strength and weakness are analysis of internal environment and opportunities, threats are
analysis of external environment.
Strengths:
Consider our strengths relative to our competitors and from our customers' perspective.
 Business location or product exclusivity
 Patents or proprietary goods
 An established distribution channel
Weaknesses:
It is far easier writing down our corporate strengths than weaknesses. Think of objections
our customers raise during the sales process.
· Limited human resources and staff
· High cost of production
· Products or service similar to competitors'
· Lack of patent protection
· A weak brand name
Opportunities:
Business is influenced by the external environment, such as: legal, political,
technological, and cultural factors.
· Government regulation softening
· Development of new technology
· Growing trend and customer base
· Market price
Threats:
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 New substitute products emerging in the market like basmati, motta etc.

 Price competition among the local paddy in comparison to Chitwan paddy.
 Economic pressure is there because purchase only local paddy is higher risky.
 While operating in the mill load shedding is the major problem.
 Due to higher plotting of land, production of paddy is decreasing.
 Storage and distribution.
Conclusions:
From the different competitors and different brand of rice the product which is produced
from the local level is highly demanded because its flavor, quality and the price. Although
it is expensive compare to other; but it is very suitable and fresh rice and likely by the
entire customer. To incorporated with the principles of “One Village One Product” will
focus on utilizing local skills, available raw materials to create enterprises and
employment opportunities for the balanced economic growth.
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PROJECT BENEFIT
Project Benefits
The Proposed project will have indirect positive impact on surrounding area which is as
mentioned below:
 New Plant will be set up on barren land; hence no displacement of people is
required.
 Substantial Socio-economic benefits.
 Good Techno-commercial viability.
 Around the project site semi-skilled and unskilled workmen are expected to be
available from local population in these areas to meet the manpower requirement
during construction and Operational phase.
 There will be employment opportunity for local people during construction and
operation phase.
 Infrastructural facilities will be improved due to the project.
 Secondary employment will be generated thereby benefiting locals.
 Project will have substantial benefits in savings of transportation cost
 Thus a significant benefit to the socio-economic environment is likely to be created
due to the project.
Employment Potential
The project shall provide employment potential under unskilled, semi-skilled and skilled
categories. The employment potential shall increase with the start of construction
activities, reach a peak during construction phase and then reduce with completion of
construction activities. During operation phase also there will be employment
opportunities, mainly in service sector, although its magnitude will be much less.
The direct employment opportunities are extremely limited and the opportunities exist
mainly with the contractors and sub-contractors. These agencies will be persuaded to
provide the jobs to local persons on a preferential basis wherever feasible.
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FINANCIAL ANALYSIS
Annexure-I
FIXED COST OF THE PROJECT
(Tk. In "000")
Fixed Cost
Item Existing Proposed Total
1.00: Project Land 1469033 894028 2363061
2.00: Building and Civil Works 1471290 508050 1979340
3.00: Machineries & Equipment: 644397 0 644397
Imported 1019973 1019973
Local 414300 414300
4.00: Transportation & Irrection 64000 197050 261050
4.00: Furniture & Equipments 4630 5000 9630
5.00: Transport 41300 356500 397800
5.00: Preliminery Expenses 0 202085 202085
6.00: Pre-Production Expenses 0 134724 134724
7.00: Safety Equipments, Electricity 0 15000 15000
8.00: Contengency 0 0 51000 51000
7.00: Interest During Construction
Period(12 months) 0 231193 231193
Total Fixed Cost of the Project 3694650 4028902.6 7723553
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Annexure-2
COST FINANCE PATTERN

Tk. In "000"

Existing Proposed Grand Total
Particulars Bank Bank
Equity Loan Total Equity Bank Loan Total Equity Loan Total
A. Fixed Cost:

Land
1469033 0 1469033 894028 0 894028 2363061 0 2363061
Build.& Cvil works
1471290 1471290 50805 457245 508050 1522095 457245 1979340
Machineries
644397 0 644397 143427 1290846 1434273 787824 1290846 2078670
Imported 10200 1009773 1019973 10200 1009773 1019973
Local 4143 410157 414300 4143 410157 414300
Transp & Irrection
64000 0 64000 19705 177345 197050 83705 177345 261050
Furniture & Fixture
4630 0 4630 5000 0 5000 9630 0 9630
Transport
41300 0 41300 0 356500 356500 41300 356500 397800
Preliminery Exp.
0 0 0 52735 149350 202085 52735 149350 202085
Pre-Prod. Exp.
0 0 0 48202 86522 134724 48202 86522 134724
Safety Equipment
/Electricity 0 0 0 15000 0 15000 15000 0 15000
Contengency 0 0 0 0 51000 51000 0 51000 51000
IDCP (12 months)
0 0 0 0 231193 231193 0 231193 231193
Total Fixed Cost
3694650 0 3694650 1228902 2800000 4028903 4923552 2800000 7723553
B. Working Capital
771450 1800000 2571450 1831912 4200000 6033821 2605271 6000000 8605271
Total Project Cost
4466100 1800000 6266100 3060815 7000000 10062724 7528823 8800000 16328824

Debt - Equity Ratio: 2568808
Fixed Cost : 4923552 6000000

7
a) Proposed 0 t 30
3
b) Total Fixed Cost 6 t 64
Working Capital :
7
a) Existing 0 t 30 FALSE
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7
b) Proposed 0 t 30
Annexure - 3
WORKING CAPITAL ESTIMATION

(At 70% Capacity)
Tk. In "000"
A. Funded:
Particulars Tied Up Period Amount
Raw Materials 90 Days 5793339
Work-in-Process 3 " 195919
Stores & Spares 90 " 2835
Finished Goods 7 " 457131
Receivables 30 " 2155048
Cash in Hand Lump-Sump 1000
Total Funded working Capital At 70% Capacity. 8605271

Means of Finance :
Source Amount
Funded
:
Cash Credit Limit (70% ) 6000000
Equity /Margin 2605271
Total 8605271

Cost Working Capital:

Interest of Cash Credit/LTR @ 9.00% 540000
Commission & Other Charge of L/C Limit @0.60% 0
Total expenses of working capital
Loan. 540000

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Annexure - 4
EARNING FORECAST
Tk. In
"000"
Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year
Sales Revenue 24027252 25743485 27459717 29175949 30892182
Cost of Goods
Sold 21550477 23096817 24643654 26191019 27718161
Gross Profit 2476776 2646667 2816063 2984931 3174020
General, Admin. & Selling
Expenses 63431 64677 66038 67526 69052
Operating Profit 2413345 2581990 2750025 2917405 3104968
Financial
Expenses:
Fixed 237081 221402 204263 185529 165052
Working Capital 540000 540000 540000 540000 540000
Profit Before Income Tax 1636265 1820589 2005762 2191875 2399917
Income Tax Provission @ 27.50 % 449973 500662 551584 602766 659977
Net
Profit 1186292 1319927 1454177 1589110 1739939
Retained
Earnings(Cumulative) 1186292 2506219 3960396 5549505 7289445

Ratios(%):
Gross Profit to
Sales 10 10 10 10 10
Operating Profit to Sales 10 10 10 10 10
Net Profit to
Sales 7 7 7 8 8
Net Profit to Project Fixed
Cost 25 28 30 33 36
Return on Investment
(ROI) 33 34 35 37 38
Return on Equity 17 19 21 23 25
Debt - Service Coverage Ratio (times) 2.17 2.29 2.40 2.52 2.65
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Annexure - 5
SALES ESTIMATE
(At 100% Capacity)

Item Quantity Rate/ M.ton Total
Tk. In
"000"
Miniket 343728 M.ton Tk. 65000.00 22342320
Aromatic 99792 M.ton Tk. 100000.00 9979200
rice bran 34372.8 M.ton Tk. 18000.00 618710
rice bran
(Aromatic) 9979.2 M.ton Tk. 20000.00 199584
Brocken Rice 39283.2 M.ton Tk. 20000.00 785664
Brocken Rice (Aromatic) 11404.8 M.ton Tk. 35000.00 399168
Total sales at 100% production Capacity in a Year 34324646

Particulars 1st year 2nd Year 3rd Year 4th Year 5th Year
Sales at Rated Capacity 34324646 34324646 34324646 34324646 34324646
Cpacity
Utilization 70% 75% 80% 85% 90%
Sales at Assumed
Capacity 24027252 25743485 27459717 29175949 30892182
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Annexure - 6
COST OF GOODS SOLD
Tk. In "000"
Raw Materials Purchase 21242216 22759517 24276818 25794119 27311420
Factory Wages & Salaries 16590 18249 20074 22081 24289
Utilities 131880 138474 145398 152668 160301
Stores & Spares 10393 20787 31180 41573 41573
Repairs & Maintenance 10393 20787 31180 41573 41573
Depreciation 138004 138004 138004 138004 138004
Rent, Tax & Insurance 500 500 500 500 500
Other Manufacturing Cost 500 500 500 500 500
Total 21550477 23096817 24643654 26191019 27718161
Assumption Underlying Cost:
Cost of Raw Materials:

Tk. In "000"
Sl No. Items Quantity Rate Amount
1 Paddy 491040 M.ton Tk. 40000.00 19641600
2 Paddy 142560 M.ton Tk. 70000.00 9979200
Jute Bag
3 (50Kg.) 5660928 pcs Tk. 65.00 367960
Jute Bag
(20Kg.) 5448643.5 pcs Tk. 35.00 190703
Jute Bag
(10Kg.) 4835376 pcs Tk. 30.00 145061
PP Bag, Sewing &
4 Others Lump-sum 21498.17
Total Cost of Raw Materials at 100% Production Capacity in a Year = 30346022
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Annexure - 7
GENERAL, ADMINISTRATIVE AND SELLING EXPENSES

Tk. In
"000"
1st 2nd 3rd 4th 5th
Particulars Year Year Year Year Year
Directorstor's Remuneration 2500 2500 2500 2500 2500
Salaries & Allowance 11466 12613 13874 15261 16787
Printing & Stationery 400 450 500 550 550
Postage,Telephone, Talex & Fax 300 300 300 300 300
Travelling & Conveyance 300 350 400 450 450
Audit fee 300 300 300 300 300
Depreciation/Written off 926 926 926 926 926
Advertisement/Selling Expenses 500 500 500 500 500
Installment of IDCP 46238.5 46238.5 46238.5 46238.5 46238.5
Misc. Expenses 500 500 500 500 500
Total 63431 64677 66038 67526 69052
Assumption:
1.00 Salaries & Allowance:
1st 2nd 3rd 4th 5th
Particulars Year Year Year Year Year
Salary 9828 9828 10811 11892 13081
Increment @
10% 982.8 1081 1189 1308
Bonus ( 2
months ) 1638 1802 1982 2180 2398
Total 11466 12613 13874 15261 16787

Depreciation and Write
2.00 off:
Name of Asset Value Rate Amount
Furniture & Fixture 4630 20% 926
Prelim.& Pre-prod.
Expenses 0 20% 0
Vehicle 0 20% 0
Total 926
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________________________________________________________________________________________
Installment of
3.00 IDCP: 46238.5 46238.5 46238.5 46238.5 46238.5
4.00 Selling Expenses 500 500 500 500 500
Financial Expenses:
2nd 3rd 4th
Particulars 1st year Year Year Year 5thYear
Interest on Term Loan 237081 221402 204263 185529 165052
Interest on Working Capital Loan 540000 540000 540000 540000 540000
Total Financial Expenses 777081 761402 744263 725529 705052
Payment of Principal 168441 184120 201258 219992 240470
Installment Paid 405522 405522 405522 405522 405522
Annexure - 8
REPAYMENT SCHEDULE
Tk. In "000"
:
Principal Amount Tk. 2568808
Rate of Interest : 9%
Grace Period : 18 months including 12 months of construction period.
Period of Loan : 12(twelve) Years including grace period.
Interest on Construction :
Period Tk. 231193
:
Interest on Grace Period Tk. 127418
Amortized :
Amount Tk. 2696225
Capital Recovery Factor : 0.03760087
Mode of Project : 41 Equal Quarterly installment of
Repayment : Tk.1013.80lac each.
IDCP : 5 Equal Yearly installment of Tk.462.39lac
each
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Repayment Schedule
No. of Month Residual Repayment Installment
After
Installment Disb. Principal Principal Interest Installment of IDCP
0 21 2696225 0 0 0 0
1 24 2655510 40715 60665 101380 46239
2 27 2613878 41631 59749 101380
3 30 2571310 42568 58812 101380
4 33 2527784 43526 57854 101380
5 36 2483279 44505 56875 101380 46239
6 39 2437773 45507 55874 101380
7 42 2391242 46531 54850 101380
8 45 2343665 47577 53803 101380
9 48 2295017 48648 52732 101380 46239
10 51 2245274 49743 51638 101380
11 54 2194412 50862 50519 101380
12 57 2142406 52006 49374 101380
13 60 2089230 53176 48204 101380 46239
14 63 2034857 54373 47008 101380
15 66 1979261 55596 45784 101380
16 69 1922414 56847 44533 101380
17 72 1864288 58126 43254 101380 46239
18 75 1804854 59434 41946 101380
19 78 1744083 60771 40609 101380
20 81 1681944 62139 39242 101380
21 84 1618408 63537 37844 101380
22 87 1553441 64966 36414 101380
23 90 1487013 66428 34952 101380
24 93 1419091 67923 33458 101380
25 96 1349640 69451 31930 101380
26 99 1278626 71014 30367 101380
27 102 1206015 72611 28769 101380
28 105 1131770 74245 27135 101380
29 108 1055854 75916 25465 101380
30 111 978231 77624 23757 101380
31 114 898861 79370 22010 101380
32 117 817705 81156 20224 101380
33 120 734723 82982 18398 101380
34 123 649873 84849 16531 101380
35 126 563115 86758 14622 101380
36 129 474405 88710 12670 101380
37 132 383698 90706 10674 101380
38 135 290951 92747 8633 101380
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39 138 196117 94834 6546 101380

40 141 99150 96968 4413 101380
41 144 0 99150 2231 101380
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Annexure - 9
Assumption Underlying Cost:
Tk. In "000"
Capacity Utilization 70% 75% 80% 85% 90%
1.00 Raw Materials 21242216 22759517 24276818 25794119 27311420
2.00 Factory Salaries & Wages:
Basic 14220 14220 15642 17206 18927
Increment @10% 0 1422 1564 1721 1893
Bonus ( 2 months Basic) 2370 2607 2868 3154 3470
Total 16590 18249 20074 22081 24289
3.00 Utilities:
Power 126000 132300 138915 145861 153154
Gas 0 0 0 0 0
Fuel & Lubricant 5880 6174 6483 6807 7147
Total 131880 138474 145398 152668 160301
4.00 Stores & Spares:
On Machineries @ .05% ,1%, 1.5%, 10393 20787 31180 41573 41573
in the year of 1st, 2nd and onward.
5.00 Repairs & Maintenance:
On Machineries @.05, 1% and 1.5%, 10393 20787 31180 41573 41573
in the year of 1st, 2nd and onward.
6.00 Rent, Tax & Insurance 500 500 500 500 500
7.00 Depriciation:
Name of Asset Value Rate Amount
Building & Civil Works 1471290 5% 73565
Machineries 644397 10% 64440
Total 138004

8.00 Others Manufacturing overhead 500 500 500 500 500
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Annexure –10
SENSITIVITY ANALYSIS
EARNING FORECAST
(If 5% decrease of Sales)
Tk. In
"000"
Sales Revenue 22825890 24456311 26086731 27717152 29347573
Cost of Goods
Sold 21550477 23096817 24643654 26191019 27718161
Gross Profit 1275413 1359493 1443078 1526133 1629411
General, Admin. & Selling Expenses 63431 64677 66038 67526 69052
Financial
Expenses:
Fixed 237081 221402 204263 185529 165052
Working Capital 540000 540000 540000 540000 540000
Net Profit 315304 386725 458762 531481 620098
Retained
Earnings(Cumulative) 315304 702029 1160792 1692273 2312371

Ratios(%):
Gross Profit to Sales 6 6 6 6 6
Net Profit to
Sales 2 2 2 3 3
Net Profit to Project Cost 7 8 10 11 13
Return on investment 16 17 18 18 19
Debt - Service Coverage Ratio 1.29 1.34 1.40 1.45 1.52
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Annexure -11
SENSITIVITY ANALYSIS
EARNING FORECAST
(If 5% increase of Raw Materials Cost)
Tk. In
"000"
Sales Revenue 24027252 25743485 27459717 29175949 30892182
Cost of Goods
Sold 22612587 24234793 25857495 27480725 29083732
Gross Profit 1414665 1508692 1602222 1695225 1808449
General, Admin. & Selling Expenses 63431 64677 66038 67526 69052
Financial
Expenses:
Fixed 237081 221402 204263 185529 165052
Working Capital 540000 540000 540000 540000 540000
Net
Profit 416262 494894 574143 654073 749901
Retained Earnings(Cumulative) 416262 911156 1485298 2139371 2889272

Ratios(%):
Gross Profit to
Sales 6 6 6 6 6
Net Profit to Sales 2 3 3 3 3
Net Profit to project Cost 9 10 12 14 16
Return on investment 18 19 20 20 21
Debt - Service Coverage
Ratio 1.39 1.45 1.52 1.58 1.65
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Annexure - 12
BREAK - EVEN ANALYSIS
Tk. In "000"
01) Operating Year : 3rd Year

02) Cpacity
Utilization : 75%
03) Sales Revenue : 27459717
04) Total Cost : 25451155
Fixed
Expenditure Total Cost Variable Cost
Raw Materials 24276818 2427682 21849136
Factory Salaries & Wages 20074 7026 13048
Utilities 145398 58159 87239
Stores & Spares 31180 7795 23385
Repairs & Maintenance 31180 15590 15590
Depreciation & Write off 138930 138930 -
Rent, Tax & Insurance 500 250 250
Other Manufacturing Cost 500 250 250
Directors Remuniration 0 0 -
Salaries & Allowance 13874 6937 6937
Printing & Stationery 500 200 300
Postage,Telephone, Talex & Fax 300 150 150
Travelling & Conveyance 400 200 200
Advertisement/Selling Expenses 500 150 350
Installment of
IDCP 46239 46238.54 0
Misc. Expenses 500 150 350
Fianacial Expenses 744263 255329 488934
Total 25451155 2965037 22486119
Break- Even Point:

P/V Ratio = 0.1811234
BEP (Sales) Tk. 16370254
BEP at Rated Capacity
= 48%
BEP at Assumed Capacity
= 60%
If Sales Price 5% Decrease: If Cost of Raw Materials 5% increase:
___________________________________________________________________________________________________________
P a g e | 47

________________________________________________________________________________________
P/V
Ratio = 0.1380247 P/V Ratio = 0.141339454
BEP (Sales) Tk. 21481932 BEP (Sales) Tk. 20978123
BEP at Rated Capacity BEP at Rated
= 63% Capacity = 61%
BEP at Assumed Capacity BEP at Assumed
= 78% Capacity = 76%
If Sales Price 10% Decrease : If Cost of Raw Materials 10% increase:

P/V
Ratio = 0.090137148 P/V Ratio = 0.101555475
BEP (Sales) Tk. 32894723 BEP (Sales) Tk. 29196225
BEP at Rated
BEP at Rated Capacity = 96% Capacity = 85%
BEP at Assumed Capacity BEP at Assumed
= 129% Capacity = 106%
Annexure - 13
INTERNAL RATE OF RETURN
NPV at NPV at
Year Expenditure Benefit Net Benefit 20% 25%
0 7723553 0 0 -7723553 -7723553
1 0 1325222 1325222 1104352 1060178
2 0 1458857 1458857 1013095 933668.4
3 0 4036168 4036168 2335745 2066518
4 0 4310030 4310030 2078525 1765388
5-
12 0 1739939 1739939 2103419 1781643
Total 911583 -116157
22%
Internal Rate of Return = (approx.)
___________________________________________________________________________________________________________
P a g e | 48

________________________________________________________________________________________
Annexure - 14
DEBT SERVICE COVERAGE RATIO

Tk. In
"000"
2nd
Income Available to meet Liabilities 1st Year Year 3rd Year 4th Year 5th Year
Net
Profit 1186292 1319927 1454177 1589110 1739939

Depreciation & Write off 138930 138930 138930 138930 138930

Interest on Term Loan & W.C Loan,
IDCP 823319 807640 790502 771768 751290

Total 2148541 2266497 2383609 2499808 2630160

Liabilities to Pay:
Installment of Term Loan 405522 405522 405522 405522 405522

Installment of
IDCP 46238.54 46239 46239 46239 46239

Interest on W .C Loan 540000 540000 540000 540000 540000

Total 991760 991760 991760 991760 991760

Debt Service Coverage Ratio (times) 2.17 2.29 2.40 2.52 2.65
If 5% Increase of Raw Matrials Cost 1.39 1.45 1.52 1.58 1.65
If 5% Decrease of Sales 1.29 1.34 1.40 1.45 1.52
If 10% Increase of Raw Materials
Cost 0.48 0.50 0.51 0.53 0.56
If 10% Decrease of Sales 0.20 0.45 0.47 0.48 0.51
___________________________________________________________________________________________________________
P a g e | 49

________________________________________________________________________________________
Annexure - 15
FUND FLOW STATEMENT

Tk. in "000"
A)Source of 2nd
Fund Cons. 1st Year Year 3rd Year 4th year 5th Year
Equity 4923552 2605271
Term Loan 2800000 0
Working Capital Loan 6000000
IDCP 231193 0
Depreciation & Write off 0 138930 138930 138930 138930 138930
Operating Profit 0 2413345 2581990 2750025 2917405 3104968
Total 7954745 11157547 2720921 2888955 3056335 3243899

B) Application of Fund:
Investment in Fixed Assets 6421071
Other Assets 838682
Income Tax Provission 449973 500662 551584 602766 659977
Increase in Current Assets 0 8605271 0 0 0 0
Payments:
Principal of Term Loan 0 168441 184120 201258 219992 240470
Interest on Term Loan 0 237081 221402 204263 185529 165052
Interest on Working Capital
Loan 0 540000 540000 540000 540000 540000
Installment of
IDCP 0 46238.5386 46238.54 46238.5386 46238.539 46238.539
Total 7259753 10047004 1492422 1543345 1594526 1651737
Surplus(A - B) 694993 1110543 1228499 1345611 1461809 1592161
Opening Balance - 694993 1805535 3034034 4379644 5841454
Closing Balance 694993 1805535 3034034 4379644 5841454 7433615
___________________________________________________________________________________________________________
P a g e | 50

________________________________________________________________________________________
Annexure - 16
PROJECTED BALANCE SHEET
Tk. In "000"
Assets Cons.Period 1st Year 2nd Year 3rd Year 4th Year 5th Year
Cash Blance 694993 1805535 3034034 4379644 5841454 7433615

Current Assets 8605271 8605271 8605271 8605271 8605271

Fixed Assets 6421071 6283067 6145063 6007058 5869054 5731050

Other Assets 838682 837756 836830 835904 834978 834052

Total 7954745 17531629 18621198 19827878 21150757 22603988
Liabilities
Term Loan 2800000 2631560 2447440 2246181 2026189 1785719

Working Capital Loan 0 6000000 6000000 6000000 6000000 6000000

IDCP 231193 184954 138716 92477 46238 0

Equity 4923552 7528824 7528824 7528824 7528824 7528824

Retained Earnings 0 1186292 2506219 3960396 5549505 7289445

Total 7954745 17531629 18621198 19827878 21150757 22603988
___________________________________________________________________________________________________________

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Rokeya Automatic Rice Mills Ltd. Investment

FEASIBILITY STUDY REPORT

Rokeya Automatic Rice Mills Limited

Rokeya Automatic Rice Mills Ltd. Investment

Rokeya Automatic Rice Mills Ltd. Investment

SL No. Description Page

SUMMARY OF THE PROJECT

Rokeya Automatic Rice Mills Ltd. Investment

01. Name of the project : Rokeya Autmatic Rice Mills Limited

02. Location of the project : Jamtala Bazar, Anmura, Chapai Nawabganj.

08. Land : The project is located on a piece of land measuring

10. Machinery to be : Such as marine insurance, L/C commission, PSI fee,

Rokeya Automatic Rice Mills Ltd. Investment

amount of Tk. 143.43 crore has been worked out.

11. Technical services and : The technologies involved in manufacturing of

Rokeya Automatic Rice Mills Ltd. Investment

a healthy financial position during the operational life.

23. Profitability & Result of Financial Analysis

1st Yr 2nd Yr 3rd Yr 4th Yr 5th Yr

Net Profit 11862.92 13199.27 14541.77 15891.10 17399.39

a) Rate of Profit : 9% on Term Investment and 9% on Working

Rokeya Automatic Rice Mills Ltd. Investment

Objective of the Project

The objectives of our project are given bellow:

3. To produce quality products for our customers.

Rokeya Automatic Rice Mills Ltd. Investment

1. Basic data would be analyzed at the very beginning of the Project.

Rokeya Automatic Rice Mills Ltd. Investment

Corporate Set-Up, Promoters and their background

Name of the Sponsors Address Status Share

Name of the Sponsors Address Status Share

Rokeya Automatic Rice Mills Ltd. Investment

2. Mosa: Tohmina Begum Vill-Charjoat Protab.

Total Shair 100%= 100%

Legal structure of the proposed company :

Background and Business Experience of the Directors

Md: Saiful Islam, Managing Director

Rokeya Automatic Rice Mills Ltd. Investment

Rokeya Automatic Rice Mills Ltd. Investment

Purpose and design:

Product mix and Production capacity:

Existing Proposed Total

Rokeya Automatic Rice Mills Ltd. Investment

02. No. of shifts per day : 3 Shifts

Cleaning of Paddy Drying

Drying in Automatic Dryer

Rice Polish Crushing/Milling Husk

Land and Location:

Rokeya Automatic Rice Mills Ltd. Investment

Building and other Civil Works:

Machinery and Equipment:

Rokeya Automatic Rice Mills Ltd. Investment

Erection & Installation:

Technical Services and quality control:

Rokeya Automatic Rice Mills Ltd. Investment

Fuel & Lubricant:

Rokeya Automatic Rice Mills Ltd. Investment

Office Furniture, Fixture & equipment:

Stores and Spares:

Repair and Maintenance:

Rokeya Automatic Rice Mills Ltd. Investment

Technical, Administrative Personnel & Laborers: