Business Plan

Course name: Entrepreneurship Development
Course Code: 5206
Business Plan
On
Alpha Apparels Limited
Submitted To
Dr. Ranjan Kumar Mitra
Professor
Department of Accounting & Information systems
Faculty of Business Studies
University of Dhaka
Submitted By
1. Md. Ripon Mia ID-12044058

2. Rabeya Khatun ID-12044057
3. Abu Hena Zunaid Islam ID-12044053
4. Md. Rashedul Islam ID-11943012
5. Maksudur Rahman ID-12044052
Submission Date: 30.12.2022

TABLE OF CONTENTS
Sl no Topic Page no
A. EXECUTIVE SUMMARY 1-5
Section: 1 INTRODUCTION 6-11
Legal Status of the Company and its promoters/sponsors: 6
Management of ALPHA APPARELS LIMITED 8
Profile of the Sponsor Directors of ALPHA APPARELS 9
LIMITED
Organization of the Project: 10
Management of the Project: 10
Section: 2 Technical Aspects 12-14
Procurement of fabrics: 12
Cutting and Stitching of garments: 12
Washing, Checking, Pressing, and Packing: 12-13
Quality Control: 13
Land: Location & Development: 13
Building and Civil Construction Work: 13
Capital Machinery: 14
Importable machinery: 14
Local machinery: 14
Utilities: 14
Transportation 14
Safety provision: 14
Section:3 Market Aspects 15-19
Competitive Factors contributing to the rise of garment 15
industry in Bangladesh:
Industry Strengths 15
Global Demand of RMG and Contribution of Bangladesh: 16-17
Marketing aspect of Alpha Apparels Limited briefly: 17
Scope & limitation of the market study: 17
Product market: 18
Demand-supply & competitive situation in the export market: 18
SWOT Analysis: 18
Section: 4 Economic Aspect 20
Contrubution To GDP 20
Section: 5 Financial Aspect 21-22
Cost of the Project & Means of Finance 21

Means of Finance 21
Debt Service Coverage Ratio 22
Profitability and Performance Analysis 22
Financial and Liquidity position 22
Section: 6 Conclusion 23-38
Conclusion 23
Annexure: 1 Projected Balance sheet 24
Annexure: 2 Projected Income Statement 25
Annexure: 3 Projected Cash Flow Statement 26-27
Annexure: 4 Discounted Cash Flow Statement 28
Annexure: 5 Break Even Analysis 29
Annexure: 6 Pay Back Period 30
Annexure: 7 Sensitivity Analysis 30
Annexure: 8 Sensitivity analysis in terms of IRR 31
At 5% decrease in operation profit
Annexure: 9 Term Loan Schedule 32
Annexure: Machinery Requirement 33
10
EXECUTIVE SUMMARY
01. Name of the Project : ALPHA APPARELS LIMITED

(Construction of New Factory Building)
02. Legal Status of the Project :

The proposed project is the expansion of ALPHA APPARELS
LIMITED(Construction of New Factory Building) has been incorporated as a
Private Limited Company in the name under the Companies Act 1994 with
authorized capital Tk 30 million divided into 3,00,000 ordinary shares of Tk 100/-
each. The registered number of the company is c 11342/444 of 2022-2023.
03. Location :
Registered Office : 42/I, Indira Road, Dhaka-1215.
Factory : 73, East Nischintopur, Ashulia, Savar, Dhaka.
04. Name and Address of Sponsors’ Directors
Sl Name Address Status in Company

No
42/E, Indira Road,
1 Md. Ripon Mia Chairman
Dhaka- 1215.
42/E, Indira Road,
2 Rabeya Khatun Vice-Chairman
Dhaka- 1215.
Abu Hena Zunaid 42/E, Indira Road,
3 Managing Director
Islam Dhaka- 1215.
42/E, Indira Road,
4 Md. Rashedul Islam Director
Dhaka- 1215.
42/E, Indira Road,
5 Maksudur Rahman Director
Dhaka- 1215.
05. Corporate Set up : Private Limited Company
1|Page
06. Type of Project : Expansion (Construction of New Factory Building) of
an established 100% Export Oriented RMG factory.
07. Annual Production Capacity :

Gradually, on basis of % of capacity utilization, based on 01 shift of 10 hour
each in 26 working days in a Month, the Monthly production capacity of the
project is given below.
SL Year Product Average Monthly

Capacity in pcs
1 2022 Verities woven item 187,000
08. Cost of the Project & Means of Finance :

(Tk in '000')
SL NO Project Component Amount in BDT
1 Land & land development 21.94

2 Construction Works 5.74
3 Importable Machinery 8.54
4 Local Machinery 0.50
5 Vehicle 0.50
6 Furniture, Fixture & Office Equipments 0.50
7 Contingency 4.20
Fixed Cost of the Project 90
IDCP @ 7 % for 6 months 1.12
Total Cost of the Project 91.12
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9. Means of Finance:
SL NO Particulars Amount in BDT
A.1 Bank/ FI Loan 32.25

A.2 IDCP 1.12
Sub Total 33.37
B Sponsor's Contribution 57.75
Sub Total 57.75
Total ( Loan + Equity ) 91.12
10. Financial Evaluation:
a) Financial Performance :
Particulars 2022 2023 2024 2025 2026

Sales
876096000 1606176000 1752192000 1971216000 2117232000
Revenue
Gross
117177276 298137536 385155387 434829128 459827624
Profit
Operating
29676421 116692521 173890995 204296383 217877755
Profit
Net Profit 26999266 111765040 168515961 198258355 211395460
b) Ratio’s %
Particulars 2022 2023 2024 2025 2026
Current ratio 1.23 1.29 1.88 2.75 3.99
Leverage Ratio 0.64 0.63 0.45 0.30 0.17
Gross Profit Ratio 13% 18% 21% 22% 21%
Net Profit Ratio 3% 6.80% 9.41% 9.85% 9.78%
ROCE 2% 11.32% 16.13% 16.82% 15.97%
Return on Owners' Equity 7% 21.98% 24.89% 22.65% 19.45%
Return on Fixed Assets 4% 18.88% 31.38% 40.69% 48.40%
3|Page
11. Debt Service Coverage Ratio:
2023 2024 2025 2026

2.09 2.72 2.56 2.37
12. Financial Internal Rate of Return: 26.55 % (Approximately)
13. Break Even Point (Sale): 33 % of assumed capacity.
14. Contribution to GDP : Tk 20.01 Crore
15. Employment Generation: Above 2000 Persons
16. Cash Surplus :
2022 2023 2024 2025 2026

7262372 11243756 12705623 38358190 18223262
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17. BUSINESS GROUND :
SL Indicator Status
1 Size of business Presently : -- Crore
in annual turnover After expansion : --- Crore Plus
0 Year, The concern incorporated with RJSC

2 Age of Business
30th November 2022.
Register office:
42-I, Indira Road, Dhaka-1215
3 Business outlook (owners occupied 8 stored build)
Factory: 73, East Nischintopur, Ashulia,

Savar, Dhaka.
4 Industry growth 16%
(Average)
5 Market Competitor Moderate
6 Exist/Entry Barrier Difficult
18. MANAGEMENT GROUND :
SL Indicator Status
1 Experience More than 2 years in related business
2 Succession Registered company
3 Team work Very Good

Remarks :
On consideration above facts & figures, the Project (Construction of New Factory
Building) is seemed to be technically feasible, commercially viable & financially
rewarding. Therefore, Banks finance might be sough
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Section – 1
INTRODUCTION:
ALPHA APPARELS LIMITED (AAL) is located at 42/I Indira Road, Dhaka-1215. AAL
has obtained approval from RAJUK for such a building and started construction of
the same. This new building will have a total floor space of 368,100 sft in six floors.
The total cost of the project is estimated BDT 30 Crore. The details of the cost of the
building, expanding more 10 lines are given in the annexure.
AAL seeks financial assistance from Bank to the tune of Taka 30 Crores to complete
this project.
Legal Status of the Company and its promoters/sponsors:

The Company is incorporated as a Private Limited Company under the Companies
Act, 1994. The Company was incorporated on 2022.
The main sponsors of the company participating in the equity capital are as follows:
Sl No Name of the Sponsors Address Status in the

Company
42/E, Indira Road,

1 Md. Ripon Mia Chairman
Dhaka- 1215.
42/E, Indira Road,
2 Rabeya Khatun Vice-Chairman
Dhaka- 1215.
42/E, Indira Road,
3 Abu Hena Zunaid Islam Managing Director
Dhaka- 1215.
42/E, Indira Road,
4 Md. Rashedul Islam Director
Dhaka- 1215.
42/E, Indira Road,
5 Maksudur Rahman Director
Dhaka- 1215.
6|Page
The administrative policy framework for the overall management is formulated and
the business operations are administered by the aforesaid Board of Directors. Abu
Hena Zunaid Islam is entrusted with the responsibility of overall management of the
Company as its managing Director, assisted by professional managers, local and
foreign specialists and technologists in the respective functional areas of the
Company.
Details about ALPHA APPARELS LIMITED and the sponsors are given in the
following sub-sections.
ALPHA APPARELS LIMITED (AAL) as promoters from its modest beginnings

employing 250 people at its headquarters in Dhaka, the company is growing to over
7500 people and 3,000 machines.
In conjunction to consolidate status of premier supplier AAL has embraced available

garment industry technology, including: computerized supply chain management
systems; computer aided pattern & marker design; fusing machinery; laser
technology and modern knitting, dyeing and finishing plant housing a fully equipped
testing & development laboratory.
The textile plant uses captive power generation and has an effluent treatment plant
for protection of environment. The garments are produced in compliant factories
using child or forced labor, providing workers free childcare, and medical assistance.
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Management of ALPHA APPARELS LIMITED
The overall management of ALPHA APPARELS LIMITED is under the guidance of

Md. Ripon Mia, the Chairman of the company, Rabeya Khatun, Vice Chairman, Abu
Hena Zunaid Islam, Managing Director and other two members are Directors of the
company.
They are closely associated with the management of the Company and have
sufficient knowledge and long experience in the management of both industrial &
trading concerns.
The top and middle-level management is executed by a group of experienced

professionals like Chartered Accountants Course Completed, MBA having long
experience in their respective fields. The company is engaging some Executives and
officers who have adequate experience and qualification in the respective functional
areas assist the senior management pool.
The sponsor of AAL bring with them long multi-dimensional practical experience in
managing business and industrial establishments which will undoubtedly help them
to manage the project efficiently during its implementation and operation.
Director’s Profile of Alpha Apparels Limited
The individual profiles of some of the sponsor Directors of ALPHA APPARELS

LIMITED are given below.
8|Page
Profile of the Sponsor Directors of ALPHA APPARELS LIMITED
Md. Ripon Mia, the Chairman
Mr. Ripon is chairman of ALPHA APPARELS LIMITED of Companies and a

prominent industrialist engaged in the apparel and garments export sector. Born in
1991, he graduated in Bachelor of Business Administration. Now he is studying
Masters of Business Administration at University of Dhaka. He is currently working in
a CA firm and a group of company as a Head of Accounts and Finance (Acting). He
has broadly experience in garments sectors and also Auditing and Taxation.
He is founder Chairman of ALPHA APPARELS LIMITED. Mr. Ripon takes an active
interest in trade politics.
Rabeya Khatun, the Vice Chairman:
Rabeya Khatun is Vice Chairman of ALPHA APPARELS LIMITED of Companies

and a prominent industrialist engaged in the apparel and garments export sector.
She graduated in Bachelor of Business Administration. Now she is studying Masters

of Business Administration at University of Dhaka. Rabeya Khatun takes an active
interest in trade politics
Abu Hena Zunaid Islam, the MANAGING DIRECTOR:
Abu Hena Zunaid Islam is MANAGING DIRECTOR of ALPHA APPARELS LIMITED

of Companies and a prominent industrialist engaged in the apparel and garments
export sector.
Mr. Zunaid Islam takes an active interest in trade politics. He graduated in Bachelor
of Business Administration. Now he is studying Masters of Business Administration
at University of Dhaka.
9|Page
Md. Rashedul Islam, Director:
Md. Rashedul Islam is one of the Directors of ALPHA APPARELS LIMITED,

Managing Director of ALPHA APPARELS LIMITED. He is a prominent industrialist
engaged in the apparel and garments export sector.
He graduated in Bachelor of Business Administration. Now he is studying Masters of

Business Administration at University of Dhaka.
Maksudur Rahman One of the Directors of the company:
Maksudur Rahman Director of ALPHA APPARELS LIMITED. He is a prominent

industrialist engaged in the apparel and garments export sector. He graduated in
Bachelor of Business Administration. Now he is studying Masters of Business
Administration at University of Dhaka.
Organization of the Project:
The sponsors strongly consider that an effective organizational structure with a well-
experienced management team to implement and run the project efficiently is
important for the success of the project. They believe that an organizational structure
at the project fashioned after the proven structure of AAL industrial setups will be
effective in attaining the objectives.
Management of the Project:
The overall management of the project is under the supervision and control of the
Board of Directors of the company constituted by the sponsors. The Board has
delegated necessary authority to a project management team fully accountable to it for
effectively implementing and running the operations of the project.
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Development and Implementation:
The project is being developed and given final shape under the guidance of the
sponsors. The implementation of the project as per finalized plans and designs is
being carried out by professionals, technical experts, consultants and experienced
officials under the leadership of an In-charge of the project.
Operational Aspects
The organization is properly manned for smooth running of various operations of the
projects. Qualified and skilled personnel have been recruited for the operational,
maintenance and development functions mostly by assigning personnel to the project
from AAL’s factories in Bangladesh as far as practicable and by employing
experienced and skilled personnel from the industrial sector. Necessary in-house
training for the locally recruited personnel for manufacturing and other related
operations at the factory, administrative and export marketing functions will be
arranged under the Group’s well-designed training programs.
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Section – 2
Technical Aspects
Technical Know-how and Process Technology:
The manufacturing process of garments involves several steps and they are
following steps:
Procurement of fabrics:
The fabrics for garments production are procured from the open market. Depending
upon the demand and choice of buyers, dyed, bleached, printed cotton or synthetic
fabric are procured. AAL do not compromise on the quality of the fabric. This being
the reason the raw material is properly inspected by officials assigned for this task.
These fabric inspectors lay the fabric on the inspection table under proper light and
check for unevenness in color or shade or any other type of fault. In case of finding
up to standard it is discarded.
Cutting and Stitching of garments:
The fabrics that are approved after inspection are then laid on the cutting table in
several layers. Once, the fabric are laid different parts of respective garments are
marked using chalk. The demarking of fabrics is done as per different sizes too.
Following to demarking, using the cutting machine the fabrics is cut. The process of
stitching by skilled workers is then carried out individual portion of every garment.
Skilled worker for the `process of stitching, carry out the process with help of over-
lock, lock stitch and other machines.
Washing, Checking, Pressing, and Packing:
To remove dirt or any strains from the garments that is acquired during the
manufacturing process, every piece of garment is put into washing machine and
washed for 4 hours in mild detergent. As the process of washing is over, excess
water from the garments is extracted via hydro extraction process and later in the
tumbler dryer, garments are completely dried. Before moving to the final process,
theevery piece of garment is checked for faults and protruding treads on the
checking table.
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When everything is found to be appropriate, the garments are pressed and its
packing is carried out or else they are eliminated. Every piece of garment is pressed
using steam press in order to remove wrinkles. Finally, the packed garments re put
into carton boxes.
Quality Control:
AAL inspect up to 10% of all inbound fabric consignments at premises using 4

points system. If incidence of defects rises above normal range in this initial random
check, the full quantity is inspected to assure acceptability of consignment.
Consistency of quality of production at each machine is controlled through traffic light

system marshalled by a team of quality inspectors reporting directly to Managing
Director. At end of the production all shirts are checked on leaving floor and again
before packing.
AAL use AQL level 2.5 for in house inspections, though other standards are also
used during third party inspections as demanded by the buyers.
Satisfied with consistent supply record of superior shirts, one of major European
customers has accorded Alpha Apparels the honour of QCC0 status
Land: Location & Development:
The project is located in AAL Industrial Park (AIP), which is developed on more than
450 decimals of land situated at Ashulia, Savar of Dhaka district. AIP has necessary
industrial infrastructure and utility services like power generation, boiler for steam,
ETP, water supply, transportation logistics, administrative support, etc located there.
Land required for the project is owned by AAL.
Building and Civil Construction Work:

The main civil construction works includes factory buildings of RCC structured six
storied under construction with one basement floor Foundation, area of each floor
more than 67000 sft on 198.00 decimals land. It is for processing set up 10-line
garments factory in each floor with all officials’ rooms, along with raw material
handling space ie fabric store, finished goods stores and office building, laboratory,
electrification works, etc. The total cost would be BDT. ---Crore.
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Capital Machinery:
Capital plant & machinery, both imported and local, at a total cost of BDT 233.11
million will be installed at the project.
Importable machinery:
All the production lines will be installed from imported machinery, which are of latest
technology and fully automated. The production line-wise estimated plant &
machinery import costs would be USD – MM.
Local machinery:
Local machinery & equipment like electrical fittings & equipment, deep tube well etc.
at an estimated value of BDT 3.90 Million will be procured.
List of above mentioned importable and local machinery with respective costs has
been shown in Annexure.
Utilities:
Electricity will be sourced from power generation facility available at AIP and from
exiting arrangements at AIP for supply of electricity from the local electric supply
company.
Water requirement for the project will be high. It will be sourced from the deep tube
well to be sunk at the project site and supplied from the overhead reservoir tank
through pipelines to various production lines and other facilities.
Transportation
4 trucks and 1 pickup van 1 car will be required for factory and other official uses.
The cost for transports is estimated to be BDT 11.70 million as given in Annexure.
Safety provision:
The project will be designed with adequate safety provisions like fireproof doors, fire
extinguishers & water buckets, fire hoses, etc to meet fire hazards at the factories
and other ancillary premises. Water in sufficient volume necessary for fire fighting
purpose will be kept available in a water reservoir to be excavated within the project
area. Training on fire fighting and first aids will be regularly imparted to the
employees.
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Section 3 :
Market Aspects
The Ready Made Garments (RMG) sector plays a pivotal role in the economy of
Bangladesh. This sector accounts for approximately 76% of the total export earnings
and nearly 10% of GDP. At present there are about 5,000 garments factories
employing approximately 6.0 million people, among which 80% are women.
Competitive Factors contributing to the rise of garment industry in

Bangladesh:
There are many factors that contributed to the rise of the apparel industry in
Bangladesh. Most firms acknowledged three internal factors: favourable government
policy, cheap labour force, entrepreneurial skills.
Industry Strengths
RMG: The Mainstay of Bangladesh Economy
• Accounts for 78% of country’s export earnings.
• Contributes more than 10% to GDP.
• Employs 3.6 million people directly, 80% of them women.
• The industry has created a platform for 2.8 million women to engage in new
productive role in the society and empowering them.
• Playing a lead role to alleviate poverty through skills development and employment
generation.
• Around 20 million people are directly and indirectly depending on this sector for
their immediate livelihoods.
• Accelerating the industrial growth and employment through exports.
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Quick Facts
• First RMG export was made in 1978 worth US$ 12000.
• Bangladesh became the 2nd largest apparel exporting country in the world.
• During the fiscal year 2010-2011 our garment export totalled USD17.91 billion, a
43% increase over previous year.
• Gained 30 years of experience in garment manufacturing.
• Competitive price with international quality standard.
• State-of-the-art factories with good housekeeping and social standards.
• Superiority in lower end niche as well as plenty of suppliers doing brand items.
• Increasing trend of direct sourcing through local offices at Dhaka.
Global Demand of RMG and Contribution of Bangladesh:

During the last three decades, this sector has achieved a phenomenal growth due to
policy support of the government and more importantly, dynamism of the private
sector entrepreneurs along with hardworking workers. Now the number of RMG units
is around 6,000 and the export earnings have exceeded US$ 20 billion. Knit
garments are exported to 148 countries and woven products to 132 countries.
Analysts say the apparel export earnings can be more than doubled by the year
2020.
More than 4.0 million workers work in the RMG units, of whom around 80 per cent
are women. The RMG roughly covers 78 per cent of the total export of the country.
Garment workers make about two-thirds of the number of employees engaged in the
manufacturing sector.
However, the leading readymade garment exporting country China now facing some
structural problems. Per unit labour cost in the country is on the rise. Its labour
productivity grew at 7.0 to 13 per cent in the past two decades, leading to higher
wage cost and losing its foothold as the worlds lowest cost manufacturer of
consumer goods. Bangladesh's per capita manufacturing value-added, for instance,
is $107.65, compared to China's 1,147.12 and India's 163.44.
Bangladesh will be able to export US$ 1.0 billion worth of RMG to China within the
next few years. There will be demand of US$ 650 billion in the global clothing and
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apparel market by 2021 where there is a scope for Bangladesh to contribute $44.56
billion. China is an untapped opportunity for Bangladesh.
A survey found that European and US companies that focus on the apparel market's
value segment plan to expand the share of their sourcing from Bangladesh to 25 to
32 per cent in 2021 to 20 percent on average now.
Bangladesh is now improving its competitiveness by reducing total production and

distribution time, which will improve surface-level competitiveness by reducing lead
time. Bangladesh is now trying to diversify its markets to include Japan, Australia,
and other important international markets.
Marketing aspect of Alpha Apparels Limited briefly:

Established in 2022, the company is planning to successfully be exporting formal &
dress shirts to the European countries. With a goal of 312,000 pieces per month
production capacity, after fully shift meant and introducing more 10 lines by the year
2024, the production capacity would be double than present time, fabrics used are
numerous and include solid and yarn dyed cotton, cvc, tc, poplin, polyester, twill and
dobby sourced from local and regional suppliers. These products are supplied in
various stain resistant, wrinkle free, teflon, peach, soft and mercerized finishes. If we
can do so we believe we will be able to make happy and more interested to our
buyers by to lean on AAL for product development based on a large collection of
fabric gathered from its extensive network of suppliers. In that case, AAL
representatives will remain in constant touch with these suppliers keeping track of
their latest advances. Also our goal is not only make happy our buyers through our
supplies also to received certification from a number of buyers who will be satisfied
with AAL work practices and brought new buyers.
Scope & limitation of the market study:
In view of Alpha Apparels Limited's growing presence in the export market in the
countries of USA, Canada, EU over several years, we expect and well conversant
with the export markets and the market potential for its products. It has a very
comprehensive and transparent knowledge of the market and its prospects. Due to
considerable market exposure attained through persistent effort, the management of
the company can make reasonable projections for export growth. The Export Dept.
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has by now faced many critical aspects of exporting to these markets to gain
sufficient knowledge and has the demonstrated capability of handling exports
effectively.
Product market:
Alpha Apparels Limited's export department expects to export products it plans to

manufacture at its production facilities for several years.
The company will therefore be in an advantageous position to export products to

existing but highly potential markets such as the U.S., Canada, and the EU. Being a
100% export-oriented industry, the Company will be able to avail the benefits of
many of the Govt facilities offered to export-oriented units.
Demand-supply & competitive situation in the export market:
Despite fierce competition, the company is experiencing increasing demand in the

American and European markets. This is due to the high quality of our products and
our compliance with the requirements of our buyers. In that case, buyers can rely on
Alpha Apparels Limited for product development based on a large collection of
fabrics gathered from its extensive network of suppliers. Alpha Apparels Limited's
agents will always be in constant touch with these suppliers keeping track of their
latest advancements in the product market and demand.
SWOT Analysis:
SWOT analysis is a tool for auditing an organization and its environment. It is the
first stage of planning and helps marketers to focus on key issues. SWOT stand for
strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are
internal factors. Opportunities and threats are external factors…
Strength:
 our specialist marketing expertise.
 A new, innovative product or service.
 Location of our business region.
 Quality processes and procedures
 Well established Alpha Apparels Limited's brand image,
 100% export-oriented industry.
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 Our business will add value to your product or service success in developing
sales and distribution system in export markets.
Weakness:
 Lack of international standard skilled labor.

 Lack of marketing expertise as new enterprise
 Unavailability of quality goods or services
Opportunity:
 Large potential export market around the globe waiting to be tapped,

 Benefits from Government and other incentives for export sector particularly
for RMG industries.
 A developing market such as the Internet is the mainstream media for
business & promotion.
 Moving into new market segments that offer improved profits.
 A new international market is growing everywhere.
Threats:
 New competitor in our home market.

 Price wars with competitors is getting tighter
 Taxation is introduced on product or service and new laws of the country.
 Imbalance political situation
 Severe competition from other market players,
 Adverse development in international political situations affecting global
economy and trade, none complained factories
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SECTION - 4
ECONOMIC ASPECT
1. CONTRIBUTION TO GDP
The Project w ill contribute an amount of Tk. 12.12 Crore to the Gross Domestic
Product (GDP) of the Country, w hich is show n as under.
Particulars Amount in BDT

Net Sales ( 3rd Year) -
Inter Firm Transaction

Manufacturing Expenses
Raw Material 14,230,377
Water ,Pow er &Fuel 49,298,497
Rent ,Tax & Insurance 1,080,450
Stores & Spares 5,391,750
Repair & Maintenance 1,884,000
other Expenses 23,714,405
Total 95,599,480
Admin & Selling Expenses
Travelling & conveyance 13,939,298
Printing & Stationery 5,058,502
Postage, telephone & Fax 14,716,607
Adudit& Legal Fees 12,281,603
Advertisement & sales promotin 3,292,116
Miscellaneous Expenses 72,742,286
Total 122,030,412
Financial Expenses
Interest on Term Loan -
Interest on Working Capital -
Total -
Grand Total 217,629,891
Contribution to GDP (217,629,891)
2. EMPLOYMENT GENERATION
Direct employment generation w ill be more than 2000 person in its ow n expansion. For
the other rented unit it w ill also create more employment opportunity. Most of
employees w ill be skilled and unskilled Labour. From this point of view the project
w ill help to improve the distribution of income. Besides, additional employment
opportunities w ill be created for production, supply and distribution of raw materials
and product.
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Section –Five
Financial Aspect
08. Cost of the Project & Means of Finance :

(Tk in '000')
SL NO Project Component Amount in BDT
1 Land & land development 21.94

2 Construction Works 5.74
3 Importable Machinery 8.54
4 Local Machinery 0.50
5 Vehicle 0.50
6 Furniture, Fixture & Office Equipments 0.50
7 Contingency 4.20
Fixed Cost of the Project 90
IDCP @ 7 % for 6 months 1.12
Total Cost of the Project 91.12
9. Means of Finance:
SL NO Particulars Amount in BDT
A.1 Bank/ FI Loan 32.25

A.2 IDCP 1.12
Sub Total 33.37
B Sponsor's Contribution 57.75
Sub Total 57.75
Total ( Loan + Equity ) 91.12
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11. Debt Service Coverage Ratio:
2023 2024 2025 2026
2.09 2.72 2.56 2.37
12. Profitability and Performance Analysis
Particulars 2022 2023 2024 2025 2026

Sales
876096000 1606176000 1752192000 1971216000 2117232000
Revenue
Gross
117177276 298137536 385155387 434829128 459827624
Profit
Operating
29676421 116692521 173890995 204296383 217877755
Profit
Net Profit 26999266 111765040 168515961 198258355 211395460
13. Financial and Liquidity position
Particulars 2022 2023 2024 2025 2026

Current ratio 1.23 1.29 1.88 2.75 3.99
Leverage Ratio 0.64 0.63 0.45 0.30 0.17
Gross Profit Ratio 13% 18% 21% 22% 21%
Net Profit Ratio 3% 6.80% 9.41% 9.85% 9.78%
ROCE 2% 11.32% 16.13% 16.82% 15.97%
Return on Owners' Equity 7% 21.98% 24.89% 22.65% 19.45%
Return on Fixed Assets 4% 18.88% 31.38% 40.69% 48.40%
22 | P a g e
CHAPTER – SIX
Conclusion:
6.01: Conclusion:
The proposed project of the company, after a thorough analysis of conservative forecasting is found
extremely profitable and financially sound. The annexure to present, the forecasted statement of
financial position (Balance Sheet) , The statement of Comprehensive income (profit and loss A/C),
The statement of cash flow and some key ratios careful study of these expose, the financial strength
of the company. Thus the scheme is found technically feasible, socially and economically desirable,
financially rewarding and commercially viable and it, may, therefore, be considered suitable for bank
financing.
23 | P a g e
Alpha Apparels LIMITED
PROJECTED BALANCE SHEET
Particulars 2,022 2,023 2,024 2,025 2,026

FIXED ASSETS (WDV):
Building 26,048,035 23,443,231 21,098,908 18,989,017 17,090,116

Machinery 95,229,096 90,706,186 81,635,568 73,472,011 66,124,810
Other Assets 18,693,652 19,954,922 15,963,937 17,771,150 14,216,920
Sub Total 139,970,783 134,104,339 118,698,413 110,232,178 97,431,845
Other non current asset Assets
Land 473,550,000 473,550,000 473,550,000 473,550,000 473,550,000
Total Fixed Asset 613,520,783 607,654,339 592,248,413 583,782,178 570,981,845
Investment on FDR & Others 31,278,888 31,278,888 31,278,888 36,278,888 86,278,888
Current ssets:
Cash & Bank Balances 18,423,762 29,667,518 42,373,142 80,731,332 98,954,594
Inventory 74,468,160 120,463,200 131,414,400 147,841,200 158,792,400
Bills Receivables 97,189,958 100,517,896 140,460,682 151,402,985 182,339,289
Current Account with Associates 63,149,799 79,726,349 86,349,523 104,793,264 118,963,164
Advance & Prepayments 54,098,385 64,763,523 93,026,017 112,793,189 124,513,500
Tax at Source - - - - -
Other Current Assets 1,267,545 11,245,765 22,636,489 32,813,625 41,332,667
Total Current Assets 308,597,609 406,384,251 516,260,253 630,375,595 724,895,614
Less: Current Liabilities
Bank Overdraft 45,362,006 53,796,325 42,345,518 30,462,960 25,685,326
Export Cash Credit 48,287,463 62,882,445 64,732,763 56,274,625 44,763,254
Creditors 127,375,036 151,037,577 139,995,299 116,574,563 90,053,179
Bills Payables 19,341,827 35,391,449 13,687,563 12,345,874 9,763,965
Other Current Liabilities 9,863,525 11,345,712 13,246,326 13,632,413 11,369,752
Total Current Liabilities 250,229,856 314,453,508 274,007,469 229,290,435 181,635,476
NET CURRENT ASSET 58,367,753 91,930,743 242,252,784 401,085,159 543,260,138
TOTAL ASSET 703,167,423 730,863,971 865,780,085 1,021,146,225 1,200,520,871
OWNERS' EQUITY
Share Capital 20,000,000 20,000,000 20,000,000 20,000,000 20,000,000
Revaluation surplus 390,237,246 390,237,246 390,237,246 390,237,246 390,237,246
Loan from Directors 120,000,000 40,000,000 20,000,000 - -
Retained Earnings 376,734,222 542,258,417 759,157,617 1,000,960,887 1,251,546,770
Sub-total 906,971,468 992,495,663 1,189,394,863 1,411,198,133 1,661,784,016
TERM LOAN 333,787,500 275,959,853 213,976,767 147,539,637 76,328,399
CAPITAL EMPLOYED 1,240,758,968 1,268,455,516 1,403,371,631 1,558,737,770 1,738,112,416
24 | P a g e
PROJECTED INCOME STATEMENT
Particulars Year 1 Year 2 Year 3 Year 4 Year 5

Export Sales 876,096,000 1,606,176,000 1,752,192,000 1,971,216,000 2,117,232,000
other sales 16,288,900 36,317,790 39,485,780 41,460,010 43,533,035
Total Revenue 892,384,900 1,642,493,790 1,791,677,780 2,012,676,010 2,160,765,035
Cost of Goods Sold 775,207,624 1,344,356,254 1,406,522,393 1,577,846,882 1,700,937,411

1 84% # 80% # 80% 80% #
GROSS PROFIT 117,177,276 298,137,536 385,155,387 434,829,128 459,827,624
Selling expense 17,521,920 32,123,520 35,043,840 39,424,320 42,344,640

Administrative Overhead 70,087,680 128,494,080 140,175,360 157,697,280 169,378,560
Total Operating Expenses 87,609,600 160,617,600 175,219,200 197,121,600 211,723,200
EARNING BEFORE INTEREST & TAX 29,567,676 137,519,936 209,936,187 237,707,528 248,104,424
Financial Overhead 3,460,000 25,502,093 41,920,678 41,256,321 38,871,981

Other income 3,568,745 4,674,678 5,875,486 7,845,176 8,645,312
NET PROFIT BEFORE TAX 29,676,421 116,692,521 173,890,995 204,296,383 217,877,755
Income Tax On Export Sales & Others 2,677,155 4,927,481 5,375,033 6,038,028 6,482,295
NET PROFIT AFTER TAX 26,999,266 111,765,040 168,515,961 198,258,355 211,395,460
Previous years retained Earnings 349,734,956 376,734,222 488,499,262 657,015,224 855,273,578
Retained Earnings Carried Forward 376,734,222 488,499,262 657,015,224 855,273,578 1,066,669,038
25 | P a g e
PROJECTED CASH FLOW STATEMENT

CASH FLOW FROM OPERATION:
Net Profit before Tax 29,676,421 116,692,521 173,890,995 204,296,383 217,877,755
Add: Non-cash expenses -
Depreciation 8,655,980 69,625,598 63,789,165 57,011,150 51,990,756
(Increase)/Decrease in Inventories (19,840,187) (45,995,040) (10,951,200) (16,426,800) (10,951,200)
(Increase)/Decrease in Receivables (33,695,445) (3,327,938) (39,942,786) (10,942,303) (30,936,304)
(Increase)/Decrease in associates account 14,334,996 (16,576,550) (6,623,174) (18,443,741) (14,169,900)
(Increase)/Decrease in advance & prepaymnet (35,884,717) (10,665,138) (28,262,494) (19,767,172) (11,720,311)
(Increase)/Decrease in other current asset (1,123,545) (9,978,220) (11,390,724) (10,177,136) (8,519,042)
Increase/(Decrease) in bank overdraft 17,280,965 8,434,319 (11,450,807) (11,882,558) (4,777,634)
Increase/(Decrease) in ECC 26,457,886 14,594,982 1,850,318 (8,458,138) (11,511,371)
Increase/(Decrease) in Creditors 23,126,848 23,662,541 (11,042,278) (23,420,736) (26,521,384)
Increase/(Decrease) in Bills payable 5,214,132 16,049,622 (21,703,886) (1,341,689) (2,581,909)
Increase/(Decrease) in other current liability
Income Tax Paid (2,677,155) (4,927,481) (5,375,033) (6,038,028) (6,482,295)

CASH FLOW FROM OPERATING ACTIVITIES 31,526,179 159,071,403 94,688,709 134,795,320 139,434,500
Acquisition of Fixed Assets (274,274,268) (10,000,000) - (5,000,000) -

Pre-operating Exp.
FDR encashment - - - (5,000,000) (50,000,000)
CASH FLOW FROM INVESTING ACTIVITIES (274,274,268) (10,000,000) - (10,000,000) (50,000,000)
Term Loan 130,010,461 (57,827,647) (61,983,086) (66,437,130) (71,211,238)

Loan from Director 120,000,000 (80,000,000) (20,000,000) (20,000,000) -
CASH FLOW FROM FINANCING ACTIVITIES 250,010,461 (137,827,647) (81,983,086) (86,437,130) (71,211,238)
NET CASH FLOW 7,262,372 11,243,756 12,705,623 38,358,190 18,223,262

Opening cash & cash equivalent 11,161,390 18,423,762 29,667,518 42,373,142 80,731,332
Closing cash & cash equivalent 18,423,762 29,667,518 42,373,141 80,731,332 98,954,594
18,423,762 29,667,518 42,373,142 80,731,332 98,954,594
26 | P a g e
Calculation of Cost of Goods Sold Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Cost of Goods Sold 775,207,624.13 1,344,356,253.66 1,406,522,393.22 1,577,846,882.43 1,700,937,410.90 1,761,271,005.32

744,681,600.00 1,204,632,000.00 1,314,144,000.00 1,478,412,000.00 1,587,924,000.00 1,642,680,000.00
OPENING STOCK of Raw Materials 0.26 54,627,973.00 74,468,160.00 120,463,200.00 131,414,400.00 147,841,200.00 158,792,400.00
Purchse of raw materials 0.80 595,745,280.00 1,093,705,600.00 1,051,315,200.00 1,202,729,600.00 1,310,339,200.00 1,354,144,000.00
Closing stock of raw materials 0.10 74,468,160.00 120,463,200.00 131,414,400.00 147,841,200.00 158,792,400.00 164,268,000.00
Materials Consumed 575,905,093.00 1,047,710,560.00 1,040,364,000.00 1,186,302,800.00 1,299,388,000.00 1,348,668,400.00
Wages & Bonus 0.23 132,971,904.80 159,566,285.76 191,479,542.91 229,775,451.49 241,264,224.07 253,327,435.27
Depreciation 8,655,980 69,625,598 63,789,165 57,011,150 51,990,756 46,436,258
Carriage Inwards 0.00 2,787,015.27 8,124,431.00 5,314,702.44 5,789,639.19 6,224,921.71 6,642,224.48
Buying House Commission 0.02 21,514,778.34 21,916,167.41 47,182,638.68 31,957,244.06 30,020,852.57 29,318,074.78
Direct Expenses Price Tickets 0.00 7,453,733.77 8,356,136.77 14,213,907.46 15,484,102.18 16,648,243.64 17,764,299.14
Factory and Machine Rent 0.00 1,115,305.33 1,250,332.28
Fuel & Power 0.02 9,148,318.15 10,255,879.80 14,324,169.60 19,004,367.12 20,433,172.70 21,802,960.13
L/C Expenses 0.00 4,387,937.64 4,919,173.15 8,367,583.47 9,115,334.25 9,800,652.55 10,457,663.13
Sub-Contract Expenses 0.01 9,136,702.47 10,242,857.84 17,423,246.84 18,980,237.15 20,407,228.57 21,775,276.76
Gas & Water 0.00 2,130,854.95 2,388,831.68 4,063,436.66 4,426,556.78 4,759,358.66 5,078,413.84
0.29 199,302,531.13 296,645,693.66 366,158,393.22 391,544,082.43 401,549,410.90 412,602,605.32
Financial Expenses Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Term Laon 21,869,093.07 17,713,654.38 13,259,609.90 8,485,502.08 3,368,331.51

Working capital 3,460,000 3,633,000.00 5,136,800.00 13,507,891.00 21,753,701.00 32,029,307.00
Total 3,460,000.00 25,502,093.07 22,850,454.38 26,767,500.90 30,239,203.08 35,397,638.51
27 | P a g e
DISCOUNTED CASH FLOW STATEMENT
Particular Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Capital Outlay -633025569.25
Operating Profit 116692521.26 173890994.78 204296382.57 217877755.10 228415098.68 251256608.55 276382269.41 304020496.35 334422545.98
Add: Depreciation & Amortisation 69625597.99 63789165.15 57011150.20 51990756.43 46436257.79 41792632.01 37613368.81 33852031.93 30466828.74
Increase / decrease in Net Working Capital -33562990.80 -150322040.41 -158832375.57 -142174978.45 218516731.26 1250746.26 1250746.26 1250746.26 1250746.26
Operating Cash Flow -633025569.25 152755128.45 87358119.52 102475157.20 127693533.09 493368087.74 290160118.02 290160118.02 290160118.02 290160118.02
Net Cash Flow -633025569.25 152755128.45 87358119.52 102475157.20 127693533.09 493368087.74 290160118.02 290160118.02 290160118.02 290160118.02
Assumptions
Net Working Capital Realized at the end of year 10.
INTERNAL RATE OF RETURN ( IRR) 26.55%
DSCR CALCULATION

Interest Expense
Interest on Term Loan 21,869,093.07 17,713,654.38 13,259,609.90 8,485,502.08 3,368,331.51
Interest on Short Term Loan 3,633,000.00 5,136,800.00 13,507,891.00 21,753,701.00 32,029,307.00
Total Interest Payment 25,502,093.07 22,850,454.38 26,767,500.90 30,239,203.08 35,397,638.51
Loan Repayment
Repayment of Term Loan 73,704,194.93 77,859,633.62 82,313,678.10 87,087,785.92 92,204,956.49
Total Loan Repayment 73,704,194.93 77,859,633.62 82,313,678.10 87,087,785.92 92,204,956.49
Total Debt Obligation 99,206,288.00 100,710,088.00 109,081,179.00 117,326,989.00 127,602,595.00
EBIT 137,519,936.34 209,936,186.78 237,707,527.57 248,104,424.10 255,654,679.68

Depreciation & Write Off 69,625,597.99 63,789,165.15 57,011,150.20 51,990,756.43 46,436,257.79
EBITDA 207,145,534.32 273,725,351.93 294,718,677.77 300,095,180.54 302,090,937.48
Interest Coverage 8.12 11.98 11.01 9.92 8.53

Debt Service Coverage Ratio 2.09 2.72 2.70 2.56 2.37
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BREAK EVEN ANALYSIS
A Sales Revenue in the 3rd Year 1,752,192,000
B Total Cost in the 3rd Year ( Including Production, Administrativ e, Selling & Financial expenses )
SL NO Particulars Fixed Variable Total

1 Purchse of raw materials - 1,051,315,200 1,051,315,200
2 Wages & Bonus 172,331,589 19,147,954 191,479,543
3 Depreciation 44,652,416 19,136,750 63,789,165
4 Carriage Inwards 531,470 4,783,232 5,314,702
5 Buying House Commission - 47,182,639 47,182,639
6 Direct Expenses Price Tickets 14,213,907 - 14,213,907
7 Fuel & Power 4,297,251 10,026,919 14,324,170
8 L/C Expenses - 8,367,583 8,367,583
9 Sub-Contract Expenses - 17,423,247 17,423,247
10 Gas & Water 406,344 3,657,093 4,063,437
11 Selling Expenses 3,504,384 31,539,456 35,043,840
12 Adminstrative overhead 126,157,824 14,017,536 140,175,360
13 Financial Expenses 927,744 927,744 1,855,488
367,022,929 1,227,525,353 1,594,548,282
Term Laon
Working capital
1 Contribution ( Sales - Variable Cost) 524,666,647
2 Profit Volume Ratio (PV Ratio)(Contribution/ Sales) 29.94%
3 Break Even Point (Fixed Cost / P/V Ratio) 1,225,720,451
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PAY BACK PERIOD
ITEMS Year -0 Year -1 Year -2 Year -3 Year -4 Year -5

Net Benefit 26,999,266 - 111,765,040 - 168,515,961 - 198,258,355 - 211,395,460 - 221,707,250
Depreciation 8,655,980 - 69,625,598 - 63,789,165 - 57,011,150 - 51,990,756 - 46,436,258
CFAT 35,655,247 181,390,638 232,305,127 255,269,505 263,386,216 268,143,507
Cumulative Inflow 181,390,638 413,695,764 668,965,269 932,351,486 1,200,494,993
Pay Back Period = (3.61) 4th year
SENSITIVITY ANALYSIS
( On the basis of 5% decrease of sales revenue )
Particulars Year - 1 Year - 2 Year - 3 Year - 4 Year - 5

Capacity Utilization 50% 60% 70% 75% 80%
Annual Sales Revenue 892,384,900 1,642,493,790 1,791,677,780 2,012,676,010 2,160,765,035
Less VAT Adjustment - - - - -
Net sales Revenue 892,384,900 1,642,493,790 1,791,677,780 2,012,676,010 2,160,765,035
Cost of Goods Sold 775,207,624 1,344,356,254 1,406,522,393 1,577,846,882 1,700,937,411
Gross Profit 117,177,276 298,137,536 385,155,387 434,829,128 459,827,624
Selling l Expenses 17,521,920 32,123,520 35,043,840 39,424,320 42,344,640
Adminstrative expense 70,087,680 128,494,080 140,175,360 157,697,280 169,378,560
Operating Profit 29,567,676 137,519,936 209,936,187 237,707,528 248,104,424
Financial Expenses 3,460,000 25,502,093 41,920,678 41,256,321 38,871,981
Net Profit Before Tax 26,107,676 112,017,843 168,015,509 196,451,207 209,232,443
Income Tax 2,677,155 4,927,481 5,375,033 6,038,028 6,482,295
Contribution to WPF (5%) - - - - -
Net Profit 23,430,521 107,090,362 162,640,475 190,413,179 202,750,148
Increase in Retained Earnings 23,430,521 107,090,362 162,640,475 190,413,179 202,750,148
Opening retained Earnings - 23,430,521 130,520,883 293,161,359 483,574,537
Closing retained Earnings 23,430,521 130,520,883 293,161,359 483,574,537 686,324,685
Gross Profit to Sales 13.13% 18.15% 21.50% 21.60% 21.28%

Operating Profit to Sales 3.31% 8.37% 11.72% 11.81% 11.48%
Net Profit to Sales 2.63% 6.52% 9.08% 9.46% 9.38%
30 | P a g e
Sensitivity analysis in terms of IRR
At 5% decrease in operation profit
DISCOUNTED CASH FLOW STATEMENT
Particular Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Capital Outlay -633025569.25
Operating Profit 116692521.26 173890994.78 204296382.57 217877755.10 228415098.68 251256608.55 276382269.41 304020496.35 334422545.98
110857895.20 0.00 165196445.04 194081563.45 206983867.35 216994343.75 0.00 238693778.12 0.00 262563155.94 288819471.53 0.00 317701418.68
Add: Depreciation & Amortisation 69625597.99 63789165.15 57011150.20 51990756.43 46436257.79 41792632.01 37613368.81 33852031.93 30466828.74
Increase / decrease in Net Working Capital -33562990.80 -150322040.41 -158832375.57 -142174978.45 218516731.26 1250746.26 1250746.26 1250746.26 1250746.26
Operating Cash Flow -633025569.25 146920502.39 0.00 78663569.78 92260338.08 116799645.33 481947332.80 0.00 281737156.40 0.00 301427271.01 323922249.72 0.00 349418993.68
Net Cash Flow -633025569.25 146920502.39 78663569.78 92260338.08 116799645.33 481947332.80 290160118.02 290160118.02 290160118.02 290160118.02
Assumptions
Net Working Capital Realized at the end of year 10.
INTERNAL RATE OF RETURN ( IRR) 13.92%
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Term Loan Schedule
Principal 300,000,000.00
IFIC capitalised 22,500,000.00
Total 322,500,000.00
Grace Period 6M
IDCP 11,287,500.00
Total 333,787,500.00
Rate 7%
Year 1 Instalment interest principal Balance
1st Quarter 19924185 5,841,281.25 14,082,903.75 319,704,596.25
2nd Quarter 19924185 5,594,830.43 14,329,354.57 305,375,241.68
3rd Quarter 19924185 5,344,066.73 14,580,118.27 290,795,123.41
4th Quarter 19924185 5,088,914.66 14,835,270.34 275,959,853.07
21,869,093.07 57,827,646.93
1st Quarter 19924185 4,829,297.43 15,094,887.57 260,864,965.50
2nd Quarter 19924185 4,565,136.90 15,359,048.10 245,505,917.40
3rd Quarter 19924185 4,296,353.55 15,627,831.45 229,878,085.95
4th Quarter 19924185 4,022,866.50 15,901,318.50 213,976,767.46
17,713,654.38 61,983,085.62
1st Quarter 19924185 3,744,593.43 16,179,591.57 197,797,175.89
2nd Quarter 19924185 3,461,450.58 16,462,734.42 181,334,441.47
3rd Quarter 19924185 3,173,352.73 16,750,832.27 164,583,609.19
4th Quarter 19924185 2,880,213.16 17,043,971.84 147,539,637.35
13,259,609.90 66,437,130.10
1st Quarter 19924185 2,581,943.65 17,342,241.35 130,197,396.01
2nd Quarter 19924185 2,278,454.43 17,645,730.57 112,551,665.44
3rd Quarter 19924185 1,969,654.15 17,954,530.85 94,597,134.58
4th Quarter 19924185 1,655,449.86 18,268,735.14 76,328,399.44
8,485,502.08 71,211,237.92
1st Quarter 19924185 1,335,746.99 18,588,438.01 57,739,961.43
2nd Quarter 19924185 1,010,449.32 18,913,735.68 38,826,225.75
3rd Quarter 19924185 679,458.95 19,244,726.05 19,581,499.70
4th Quarter 19924185 342,676.24 19,581,499.71 (0.00)
3,368,331.51 76,328,399.44
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Alpha Apparels Ltd.
Machinery Requirment
Date: 12/13/2022
DEPT DESCRIPTION MODEL Qty Unit Price Total

1-NEEDLE LOCK STITCH M/C WITH JUKI DDL-8700-7
AUTO-TRIMMER
430 625 268,750
2-NEEDLE LOCK STITCH M/C JUKI LH-3528ASF 30 1,066 31,980

1-NEEDLE DOUBLE CHAIN STITCH M/C JUKI-MH-481U 20 2,600 52,000
4-NEEDLE KANSAI SPECIAL M/C DFB-1404 PSF 12 1,144 13,728

SEWING
5-THREAD OVER LOCK M/C JUKI MO6716SDE440H 30 603 18,090
FEED OF THE ARM JUKI MS-1190F 20 2,200 44,000
1-NDL BUTTON HOLE M/C JUKI LBH-781U 25 3,700 92,500
1-NDL BUTTON STITCH M/C JUKI LK1903 ANSS 301 25 4,800 120,000
BAR TACK MACHINE JUKI LK-1900 ANSS 8 2,900 23,200
GAS BOILER 1 18,500 18,500
STEAM IRON 34 40 1,360
VACUUM TABLE NAOMOTO & LOCAL 32 400 12,800
FABRIC CUTTING M/C EASTMAN, KM 7 1,000 7,000
CUTTING
BAND KNIFE M/C EASTMAN EC-700 1 4,000 4,000
POWER GENERATOR CAT 975KVA 1 300,000 300,000
FUSING M/C KANNEGEISER EX 1000 FE CU 1 47,500 47,500
FABRIC INSPECTION MACHINE UZU 1 4,000 4,000
AIR COMPRESSOR LUPAMAT 22 KW 1 14,000 14,000
OTHERS
BUTTON PULL TEST SAFGUARD 1 2,400 2,400
COLOR LIGHT BOX VERIVIDE 1 1,500 1,500
NEEDLE DETERCTOR M/C CINTEX 1 8,000 8,000
PLOTTER Gerber Technology XLP-50+ Plotter 1 10,000 10,000
TOTAL NO. OF MACHINES 683 1,095,308
33 | P a g e
Project Name: Alpha Apparels Ltd
Purba Nashingapur,Zirabo,Ashulia,Dhaka
Sub: Estimate for Foundation with Basement Floor Construction Work
SI Description Mesurement of Quantity Unit price in Taka Amount in Taka
Units
1 Earth Excavation Work Cft 365,800 6 2,194,800
2 Sand Filling Cft 120,000 9.5 1,140,000
3 Brick Chips Cft 120,000 75 9,000,000
4 1st Class Bricks Cft 95,000 7 665,000
5 Stone Chips Cft 155,000 140 21,700,000
6 Cement Bags 53,000 475 25,175,000
7 Course Sand (Sylhet) Cft 83,000 45 3,735,000
8 Course Sand (Local) Cft 25,000 20 500,000
9 M.S Rod KGS 486,800 72 35,049,600
10 Shuttering Materials Sft 98,889 72 7,120,008
11 Collapsible Gate Sft 1,200 300 360,000
12 Shutter Gate Sft 1,200 350 420,000
13 Thai-Aluminum FabricationSft 1,250 230 287,500
14 Window M.S Grill Sft 1,250 115 143,750
15 Tiles fittings Sft 58,170 120 6,980,400
16 Electrical & Sanitary Work % 12 Of Total Construction 13,178,793
17 Labour Charge Sft 58,170 173 10,063,410
34 | P a g e
Project Name: Alpha Apparels Ltd.
Sub: Estimate for Ground Floor Construction Work
SI Description MoU Quantity Unit price in Taka Amount in Taka
1 1st Class Bricks Cft 150,000.00 7.5 1,125,000
2 Cement Bags 32,000.00 745 23,840,000
3 Course Sand (Sylhet) Cft 55,000.00 45 2,475,000
4 Course Sand (Local) Cft 25,000.00 20 500,000
5 M.S Rod KGS 294,500.00 72 21,204,000
6 Shuttering Materials Sft 51,655.00 25 1,291,375
7 Collapsible Gate Sft 2,240.00 300 672,000
8 Shutter Gate Sft 2,240.00 350 784,000
9 Thai-Aluminum Fabrication Sft 4,500.00 230 1,035,000
10 Window M.S Grill Sft 4,500.00 115 517,500
11 Tiles fittings Sft 58,205.73 120 6,984,688
12 Electrical & Sanitary Work% 12.00 Of Total Contruction 6,152,528
13 Labour Charge Sft 51,655.00 85 4,390,675
Total 70,971,766
35 | P a g e
Sub: Estimate for 1st Floor Construction Work
SI Description Mesurement
Quantity
of Units Unit price in Taka Amount in Taka
1 1st Class Bricks Cft 265,000.00 7.5 1,987,500
2 Cement Bags 33,900.00 475 16,102,500
3 Course Sand (Sylhet) Cft 55,000.00 45 2,475,000
4 Course Sand (Local) Cft 26,000.00 20 520,000
5 M.S Rod KGS 294,500.00 72 21,204,000
6 Shuttering Materials Sft 51,655.00 25 1,291,375
7 Collapsible Gate Sft 2,240.00 300 672,000
8 Shutter Gate Sft 2,240.00 350 784,000
9 Thai-Aluminum Fabrication Sft 5,600.00 230 1,288,000
10 Window M.S Grill Sft 5,600.00 115 644,000
11 Tiles fittings Sft 58,205.73 120 6,984,688
12 Electrical & Sanitary Work % 12.00 Of Total Contruction 6,397,088
13 Labour Charge Sft 51,655.00 92.14 4,759,492
Total 65,109,642
36 | P a g e
Sub: Estimate for 2nd Floor Construction Work
SI Description Mesurement
Quantity
of Units Unit price in Taka Amount in Taka
1 1st Class Bricks Cft 265,000.00 7.50 Tk/Pce 1,987,500
2 Cement Bags 33,900.00 475.00 Tk/Bag 16,102,500
3 Course Sand (Sylhet) Cft 55,000.00 45.00 Tk/Cft 2,475,000
4 Course Sand (Local) Cft 26,000.00 20.00 Tk/Cft 520,000
5 M.S Rod KGS 294,500.00 72.00 Tk/kg 21,204,000
6 Shuttering Materials Sft 51,655.00 25.00 Tk/sft 1,291,375
7 Collapsible Gate Sft 2,240.00 300.00 Tk/sft 672,000
8 Shutter Gate Sft 2,240.00 350.00 Tk/sft 784,000
9 Thai-Aluminum Fabrication Sft 5,600.00 230.00 Tk/sft 1,288,000
10 Window M.S Grill Sft 5,600.00 115.00 Tk/sft 644,000
11 Tiles fittings Sft 58,205.73 120.00 Tk/sft 6,984,688
13 Labour Charge Sft 51,655.00 102.00 Tk/sft 5,268,810
Total 65,618,961

Sub: Estimate for 3rd Floor Construction Work
SI Description Mesurement of Units Quantity Unit price in Taka Amount in Taka
5 M.S Rod KGS 294,500.00 72.00 Tk/kg 21,204,000
Total 65,838,495
37 | P a g e
Sub: Estimate for 4th Floor Construction Work
5 M.S Rod KGS 294,500.00 72.00 Tk/kg 21,204,000
Total 66,058,029

Sub: Estimate for 4th Floor Construction Work
5 M.S Rod KGS 294,500.00 72.00 Tk/kg 21,204,000
Total 66,058,029
38 | P a g e

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Course name: Entrepreneurship Development

Course Code: 5206

1. Md. Ripon Mia ID-12044058

Submission Date: 30.12.2022

Cost of the Project & Means of Finance 21

01. Name of the Project : ALPHA APPARELS LIMITED

02. Legal Status of the Project :

04. Name and Address of Sponsors’ Directors

Sl Name Address Status in Company

05. Corporate Set up : Private Limited Company

07. Annual Production Capacity :

SL Year Product Average Monthly

08. Cost of the Project & Means of Finance :

SL NO Project Component Amount in BDT

1 Land & land development 21.94

SL NO Particulars Amount in BDT

A.1 Bank/ FI Loan 32.25

10. Financial Evaluation:

Particulars 2022 2023 2024 2025 2026

2023 2024 2025 2026

12. Financial Internal Rate of Return: 26.55 % (Approximately)

13. Break Even Point (Sale): 33 % of assumed capacity.

14. Contribution to GDP : Tk 20.01 Crore

15. Employment Generation: Above 2000 Persons

16. Cash Surplus :

2022 2023 2024 2025 2026

0 Year, The concern incorporated with RJSC

Factory: 73, East Nischintopur, Ashulia,

18. MANAGEMENT GROUND :

1 Experience More than 2 years in related business

2 Succession Registered company

3 Team work Very Good

Legal Status of the Company and its promoters/sponsors:

Sl No Name of the Sponsors Address Status in the

42/E, Indira Road,

ALPHA APPARELS LIMITED (AAL) as promoters from its modest beginnings

In conjunction to consolidate status of premier supplier AAL has embraced available

The overall management of ALPHA APPARELS LIMITED is under the guidance of

The top and middle-level management is executed by a group of experienced

Director’s Profile of Alpha Apparels Limited

The individual profiles of some of the sponsor Directors of ALPHA APPARELS

Md. Ripon Mia, the Chairman

Mr. Ripon is chairman of ALPHA APPARELS LIMITED of Companies and a

Rabeya Khatun, the Vice Chairman:

Rabeya Khatun is Vice Chairman of ALPHA APPARELS LIMITED of Companies

She graduated in Bachelor of Business Administration. Now she is studying Masters

Abu Hena Zunaid Islam, the MANAGING DIRECTOR:

Abu Hena Zunaid Islam is MANAGING DIRECTOR of ALPHA APPARELS LIMITED

Md. Rashedul Islam is one of the Directors of ALPHA APPARELS LIMITED,

He graduated in Bachelor of Business Administration. Now he is studying Masters of

Maksudur Rahman One of the Directors of the company:

Maksudur Rahman Director of ALPHA APPARELS LIMITED. He is a prominent

Organization of the Project:

Management of the Project:

Technical Know-how and Process Technology:

AAL inspect up to 10% of all inbound fabric consignments at premises using 4

Consistency of quality of production at each machine is controlled through traffic light

Land: Location & Development:

Building and Civil Construction Work:

Competitive Factors contributing to the rise of garment industry in

Global Demand of RMG and Contribution of Bangladesh:

Bangladesh is now improving its competitiveness by reducing total production and

Marketing aspect of Alpha Apparels Limited briefly:

Alpha Apparels Limited's export department expects to export products it plans to