Financial Projection of

Islam Oxygen Limited

Islam Re-Rolling Mills (Pvt) Limited
Ear Ali Re-Rolling & Steel Mills (Pvt) Limited

1
 Table of Content

Details Page No.

Financial Projection of Islam Oxygen Limited 03

Financial Projection of Islam Re-Rolling Mills (Pvt) Limited 06

Financial Projection of Ear Ali Re-Rolling & Steel Mills (Pvt) Limited 09

Combined Financial Performance and Loan Servicing Capacity 12

Loan Amortization Schedule 14

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 Financial Projection of Islam Oxygen Limited
Assumption for Forecasting:

 Plant is operating 330 days per annum

 Annual Production capacity for manufacturing unit is as follows:

Products Qty. Measurement Parameter

Industrial Oxygen 2,376,000 Cubic Meter/Year
Medical Compressed Oxygen 4,752,000 Cubic Meter/Year
Medical Compressed Air 138,600 Cubic Meter/Year
Medical Compressed Nitrogen 396,000 Cubic Meter/Year
Industrial Nitrogen 198,000 Cubic Meter/Year
Dissolved Acetylene 396,000 Kg/Year
Medical Nitrous Oxide 554,400 Kg/Year

 Capacity Utilization rate has been considered @ 80% over the projected period.
 It has been involved in trading of following products:
Medical Carbon Dioxide-Liquid
Industrial Argon Gas
Medical Liquid Oxygen
Helium Gas with Cylinder
Hydrogen gas with cylinder
Medical Trolley-Small
Medical Trolley-Large
Cylinder
Cylinder Valve & Valve Key
Medical Carbon Dioxide (Liquid), Industrial Argon gas, and Medical liquid Oxygen has been estimated to be
traded 792 MT, 633,600 cubic meters, and 792,000 Cubic meter (after conversion to gas) on an average per
year. Considering the market scenario, the company procures liquid oxygen and sells it in liquid or gaseous
form. Trading growth rate for Helium Gas with Cylinder and Hydrogen gas with cylinder has been
considered 10.6% and 11% p.a. Other item has been estimated to grow @ 10% over the projected period.

 Sales price has been estimated as per following:

Products Price in BDT Measurement Parameter
Industrial Oxygen 25 BDT/Cubic Meter
Medical Compressed Oxygen 45 BDT/Cubic Meter
Medical Compressed Air 37 BDT/Cubic Meter
Medical Compressed Nitrogen 68 BDT/Cubic Meter
Industrial Nitrogen 30 BDT/Cubic Meter
Dissolved Acetylene 560 BDT/Kg
Medical Nitrous Oxide 570 BDT/Kg
Medical Carbon Dioxide(Liquid) 45 BDT/Kg
Industrial Argon gas 220 BDT/Cubic Meter

 Sales price growth rate has been considered @ 2% over the projected period.

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 Raw material cost has been estimated as per following:
Material (Ammonium Chloride, Copper Wire, Ammonia Solution 20%) cost of : BDT 0.0264 /Cubic
per CM production of Industrial Oxygen Meter
Material (Ammonium Chloride, Copper Wire, Ammonia Solution 20%) cost of : BDT 0.0264 /Cubic
per CM production of Medical Compressed Oxygen Meter
Material (Calcium Carbide, Acetone, DMF) Cost of per Kg production of : BDT 189 /Kg
Dissolved Acetylene
Material (Ammonium Nitrate Medical Grade, Ammonium Dehydrogenase : BDT 131/Kg
Phosphate Reagent Grade
Sodium Hydroxide Industrial Grade
Potassium Permanganate Industrial Grade
Sulfuric Acid Industrial Grade) Cost of per Kg production of Medical Nitrous
Oxide
Cost of procuring Medical Carbon Dioxide(Liquid) BDT 12.57/Kg
Cost of procuring Industrial Argon gas BDT 75.91 /Cubic
Meter
Cost of procuring Liquid Medical Oxygen BDT 14.29 /Cubic
Meter

 Cost of raw material has been estimated to increase @ 0.3% per year over the projected period
 Factory salary has been estimated to increase @ 5% on gross payment over the projected period
 Presently the company is running its operation by local grid electricity. It is in the process of availing gas
connection. It will have utility cost after gas connection BDT 36.4 million (approx.) per annum. Utility cost
has been estimated to increase @ 5% p.a. over the projected period.
 Stores & spares and repair & maintenance cost has been estimated to increase @ 5% p.a
 Other factory overhead has been estimated to increase @ 5% p.a over the projected period
 Admin Dept. and Selling Dept. salary has been estimated to increase @ 5% p.a over the projected period
 Other admin expenses has been estimated to increase @ 5% p.a over the projected period
 Promotional expenses and business development expenses has been estimated @ 0.25% and 0.19% of
sales respectively.
 Production raw material holding period has been estimated 85-90 days for first five years. No tide up period
required for manufactured finished goods except Nitrous Oxide. It required 3 days holding period.
 Depreciation charges has been considered as per following:
Asset Details Rate
Office Building 10%
Plant & Machinery 15%
Furniture & Fixture 10%
Vehicle 20%
Liquid Plant 15%
Cylinder 10%
Power Station 15%
Staff Quarter, Cylinder testing workshop 10%

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 Islam Oxygen Ltd.

Projected Income (Operating Profit) Statement

(Amount in BDT)

Particulars Year-1 Year-2 Year-3 Year-4 Year-5 Year 6 Year-7

Revenue 828,897,919 854,027,583 877,758,612 902,631,313 928,737,483 956,175,856 985,054,592

Less: COGS 335,036,856 342,044,080 347,786,424 353,806,564 377,917,010 380,893,333 380,418,965

Less: Cost of Sales 74,398,986 75,116,772 75,886,829 76,714,394 77,605,241 78,565,726 79,602,852

Gross Profit 419,462,077 436,866,731 454,085,359 472,110,355 473,215,231 496,716,797 525,032,775

Less: Operating Expenses 92,069,485 96,191,246 100,479,380 104,979,101 109,701,413 114,657,905 119,860,802

Less: Admin Expenses 60,789,848 63,829,341 67,020,808 70,371,848 73,890,440 77,584,962 81,464,210

Less: Selling & distribution

31,279,637 32,361,906 33,458,573 34,607,253 35,810,973 37,072,942 38,396,592
expense

Operating Profit 327,392,592 340,675,484 353,605,979 367,131,254 363,513,818 382,058,892 405,171,973

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 Financial Projection of Islam Re-Rolling Mills (Pvt) Limited
Assumption for Forecasting:

Particulars Basis Yr-1 Yr-2 Yr-3 Yr-4 Yr-5 Yr-6 Yr-7

Days 300 300 300 300 300 300 300 300

Production Capacity/Day-Rod MT 350 350 350 350 350 350 350
Production Capacity/ Yr-Rod MT 105,000 105,000 105,000 105,000 105,000 105,000 105,000
Utilization 80% 82.5% 85.0% 87.5% 90.0% 92.5% 95.0%
Actual Production MT 84,000 86,625 89,250 91,875 94,500 97,125 99,750
Selling Price BDT/MT 86,000 90,300 94,815 99,556 104,534 109,760 115,248
Price Growth 5% 5% 5% 5% 5% 5%
Cost:
Raw Material BDT/MT 72,000 75,600 79,380 83,349 87,516 91,892 96,487
Price Growth 5% 5% 5% 5% 5% 5%
Other Production Cost:
Electricity BDT/MT 1550
Gas BDT/MT 1350
Worker BDT/MT 107
Bundel BDT/MT 220
Other worker BDT/MT 11
Loading & Unloading BDT/MT 250
VAT BDT/MT 400
Maintenance Cost BDT/MT 200
Administrative Cost BDT/MT 200
Growth Rate 5% p.a

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 Tied-up period:

Raw Material Days 40 40 40 40 40 40 40

Work In Progress Days 1 1 1 1 1 1 1
Finished Goods Stock Days 40 40 40 40 40 40 40
Wastage 2% 2% 2% 2% 2% 2% 2%

Selling Expenses: 1% of sales. It will increase @ 5% p.a

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 Islam Re-Rolling Mills (Pvt) Ltd.

Projected Income (Operating Profit) Statement

(Amount in BDT)

Particulars Year-1 Year-2 Year-3 Year-4 Year-5 Year 6 Year-7

Revenue 5,962,253,752 7,270,844,237 7,975,253,464 8,635,841,383 9,329,738,386 10,069,727,275 10,860,162,946

Less: COGS 5,585,739,962 6,795,127,096 7,434,801,094 8,031,402,401 8,657,305,494 9,324,386,714 10,036,590,807

Gross Profit 376,513,790 475,717,141 540,452,370 604,438,981 672,432,892 745,340,561 823,572,139

Less: Operating Expenses

(-) Admin Expenses 16,800,000 17,640,000 18,522,000 19,448,100 20,420,505 21,441,530 22,513,607

(-) Selling & Distribution Expenses 59,622,538 62,603,664 65,733,848 69,020,540 72,471,567 76,095,145 79,899,903

Operating Profit 300,091,252 395,473,477 456,196,523 515,970,341 579,540,820 647,803,885 721,158,630

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 Financial Projection of Ear Ali Re-Rolling & Steel Mills (Pvt) Limited
Assumption for Forecasting:

Particulars Basis Yr-1 Yr-2 Yr-3 Yr-4 Yr-5 Yr-6 Yr-7

Days 300 300 300 300 300 300 300 300

Production Capacity/Day (Angle) MT 150 150 150 150 150 150 150
Production Capacity/Day-Yr-Angle MT 45,000 45,000 45,000 45,000 45,000 45,000 45,000
Utilization 80% 82.5% 85.0% 87.5% 90.0% 92.5% 95.0%
Actual Production-Angle MT 36,000 37,125 38,250 39,375 40,500 41,625 42,750
Selling Price-Angle BDT/MT 92,000 96,600 101,430 106,502 111,827 117,418 123,289
Price Growth 5% 5% 5% 5% 5% 5%
Cost:
Raw Material BDT/MT 72,000 75,600 79,380 83,349 87,516 91,892 96,487
Price Growth 5% 5% 5% 5% 5% 5%
Other Production Cost:
Electricity BDT/MT 1550
Gas BDT/MT 1350
Worker BDT/MT 107
Bundel BDT/MT 220
Other worker BDT/MT 11
Loading & Unloading BDT/MT 250
VAT BDT/MT 400
Maintenance Cost BDT/MT 200
Administrative Cost BDT/MT 200
Growth Rate 5% p.a

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 Tied-up period:

Raw Material Days 40 40 40 40 40 40 40

Work In Progress Days 1 1 1 1 1 1 1
Finished Goods Stock Days 40 40 40 40 40 40 40
Wastage 7% 7% 7% 7% 7% 7% 7%

Selling Expenses: 1% of sales. It will increase @ 5% p.a

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 Ear Ali Re-Rolling & Steel Mills (Pvt) Limited
Projected Income (Operating Profit) Statement

(Amount in BDT)

Particulars Year-1 Year-2 Year-3 Year-4 Year-5 Year 6 Year-7

Revenue 2,594,059,416 3,163,401,415 3,469,876,024 3,757,284,843 4,059,185,790 4,381,140,411 4,725,043,435

Less: COGS 2,388,879,597 2,906,503,811 3,182,322,758 3,440,090,464 3,710,563,482 3,998,801,487 4,306,495,940

Gross Profit 205,179,819 256,897,603 287,553,266 317,194,379 348,622,309 382,338,924 418,547,495

Less: Operating Expenses

(-) Admin Expenses 7,200,000 7,560,000 7,938,000 8,334,900 8,751,645 9,189,227 9,648,689

(-) Selling & Distribution Expenses 25,940,594 27,237,624 28,599,505 30,029,480 31,530,954 33,107,502 34,762,877

Operating Profit 172,039,224 222,099,980 251,015,761 278,829,998 308,339,709 340,042,195 374,135,929

11
 Combined Financial Performance and Loan Servicing Capacity

(Amount in BDT)

Particulars Year-1 Year-2 Year-3 Year-4 Year-5 Year 6 Year-7

Operating Profit (Islam Oxygen) 327,392,592 340,675,484 353,605,979 367,131,254 363,513,818 382,058,892 405,171,973

Operating Profit (Islam Re-Rolling) 300,091,252 395,473,477 456,196,523 515,970,341 579,540,820 647,803,885 721,158,630

Operating Profit (Ear Ali RE-Rolling) 172,039,224 222,099,980 251,015,761 278,829,998 308,339,709 340,042,195 374,135,929

Sub-Total (A) 799,523,069 958,248,941 1,060,818,263 1,161,931,594 1,251,394,347 1,369,904,972 1,500,466,532

Less: Combined Financial

Expenses:
Profit on additional Long-Term Loan
86,664,554 76,804,542 65,901,251 53,844,292 40,511,596 25,768,179 9,464,774
(BDT 90 Crore Loan)
Profit on additional Short-Term Loan
50,500,000 50,500,000 50,500,000 50,500,000 50,500,000 50,500,000 50,500,000
(BDT 50 Crore Loan)
Profit on Existing Loan
117,463,000 117,463,000 117,463,000 117,463,000 117,463,000 117,463,000 117,463,000
(BDT 116.30 Crore Loan)

Principal on additional Long-Term 93,186,759 103,046,771 113,950,062 126,007,021 139,339,716 154,083,133 170,386,538
Loan (BDT 90 Crore Loan)

Sub-Total (B) 347,814,313 347,814,313 347,814,313 347,814,313 347,814,313 347,814,313 347,814,313

Surplus Profit (A-B) 451,708,757 610,434,628 713,003,950 814,117,281 903,580,034 1,022,090,659 1,152,652,219

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Loan Coverage Ratio:

Particulars Year-1 Year-2 Year-3 Year-4 Year-5 Year 6 Year-7

Time Interest Earned (x) 3.1 3.9 4.5 5.2 6.0 7.1 8.5

Debt Service Coverage Ratio (x) 2.30 2.76 3.05 3.34 3.60 3.94 4.31

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 Long-Term Loan Amortization Schedule

Loan Amount BDT 900,000,000

Term 84 Months
Rate 10.1% P.a

(Amount in BDT)

Beginning Ending
Month Installment Interest Principle
Balance Balance
1 900,000,000 14,987,609 7,575,000 7,412,609 892,587,391
2 892,587,391 14,987,609 7,512,611 7,474,999 885,112,392
3 885,112,392 14,987,609 7,449,696 7,537,913 877,574,478
4 877,574,478 14,987,609 7,386,252 7,601,358 869,973,121
5 869,973,121 14,987,609 7,322,274 7,665,336 862,307,785
6 862,307,785 14,987,609 7,257,757 7,729,852 854,577,933
7 854,577,933 14,987,609 7,192,698 7,794,912 846,783,021
8 846,783,021 14,987,609 7,127,090 7,860,519 838,922,502
9 838,922,502 14,987,609 7,060,931 7,926,678 830,995,824
10 830,995,824 14,987,609 6,994,215 7,993,395 823,002,430
11 823,002,430 14,987,609 6,926,937 8,060,672 814,941,757
12 814,941,757 14,987,609 6,859,093 8,128,516 806,813,241
13 806,813,241 14,987,609 6,790,678 8,196,931 798,616,310
14 798,616,310 14,987,609 6,721,687 8,265,922 790,350,388
15 790,350,388 14,987,609 6,652,116 8,335,494 782,014,894
16 782,014,894 14,987,609 6,581,959 8,405,651 773,609,243
17 773,609,243 14,987,609 6,511,211 8,476,398 765,132,845
18 765,132,845 14,987,609 6,439,868 8,547,741 756,585,104
19 756,585,104 14,987,609 6,367,925 8,619,685 747,965,419
20 747,965,419 14,987,609 6,295,376 8,692,234 739,273,185
21 739,273,185 14,987,609 6,222,216 8,765,393 730,507,792
22 730,507,792 14,987,609 6,148,441 8,839,169 721,668,623
23 721,668,623 14,987,609 6,074,044 8,913,565 712,755,058
24 712,755,058 14,987,609 5,999,022 8,988,588 703,766,470
25 703,766,470 14,987,609 5,923,368 9,064,242 694,702,229
26 694,702,229 14,987,609 5,847,077 9,140,532 685,561,696
27 685,561,696 14,987,609 5,770,144 9,217,465 676,344,231
28 676,344,231 14,987,609 5,692,564 9,295,045 667,049,186
29 667,049,186 14,987,609 5,614,331 9,373,279 657,675,907
30 657,675,907 14,987,609 5,535,439 9,452,170 648,223,737

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31 648,223,737 14,987,609 5,455,883 9,531,726 638,692,010
32 638,692,010 14,987,609 5,375,658 9,611,952 629,080,059
33 629,080,059 14,987,609 5,294,757 9,692,852 619,387,207
34 619,387,207 14,987,609 5,213,176 9,774,434 609,612,773
35 609,612,773 14,987,609 5,130,908 9,856,702 599,756,071
36 599,756,071 14,987,609 5,047,947 9,939,662 589,816,409
37 589,816,409 14,987,609 4,964,288 10,023,321 579,793,087
38 579,793,087 14,987,609 4,879,925 10,107,684 569,685,403
39 569,685,403 14,987,609 4,794,852 10,192,757 559,492,646
40 559,492,646 14,987,609 4,709,063 10,278,546 549,214,100
41 549,214,100 14,987,609 4,622,552 10,365,057 538,849,042
42 538,849,042 14,987,609 4,535,313 10,452,297 528,396,746
43 528,396,746 14,987,609 4,447,339 10,540,270 517,856,476
44 517,856,476 14,987,609 4,358,625 10,628,984 507,227,492
45 507,227,492 14,987,609 4,269,165 10,718,445 496,509,047
46 496,509,047 14,987,609 4,178,951 10,808,658 485,700,389
47 485,700,389 14,987,609 4,087,978 10,899,631 474,800,758
48 474,800,758 14,987,609 3,996,240 10,991,370 463,809,388
49 463,809,388 14,987,609 3,903,729 11,083,880 452,725,507
50 452,725,507 14,987,609 3,810,440 11,177,170 441,548,338
51 441,548,338 14,987,609 3,716,365 11,271,244 430,277,094
52 430,277,094 14,987,609 3,621,499 11,366,111 418,910,983
53 418,910,983 14,987,609 3,525,834 11,461,775 407,449,208
54 407,449,208 14,987,609 3,429,364 11,558,245 395,890,963
55 395,890,963 14,987,609 3,332,082 11,655,527 384,235,436
56 384,235,436 14,987,609 3,233,982 11,753,628 372,481,808
57 372,481,808 14,987,609 3,135,055 11,852,554 360,629,254
58 360,629,254 14,987,609 3,035,296 11,952,313 348,676,940
59 348,676,940 14,987,609 2,934,698 12,052,912 336,624,029
60 336,624,029 14,987,609 2,833,252 12,154,357 324,469,671
61 324,469,671 14,987,609 2,730,953 12,256,656 312,213,015
62 312,213,015 14,987,609 2,627,793 12,359,816 299,853,199
63 299,853,199 14,987,609 2,523,764 12,463,845 287,389,354
64 287,389,354 14,987,609 2,418,860 12,568,749 274,820,605
65 274,820,605 14,987,609 2,313,073 12,674,536 262,146,069
66 262,146,069 14,987,609 2,206,396 12,781,213 249,364,855
67 249,364,855 14,987,609 2,098,821 12,888,789 236,476,067
68 236,476,067 14,987,609 1,990,340 12,997,269 223,478,798
69 223,478,798 14,987,609 1,880,947 13,106,663 210,372,135
70 210,372,135 14,987,609 1,770,632 13,216,977 197,155,158
71 197,155,158 14,987,609 1,659,389 13,328,220 183,826,938

15
72 183,826,938 14,987,609 1,547,210 13,440,399 170,386,538
73 170,386,538 14,987,609 1,434,087 13,553,523 156,833,016
74 156,833,016 14,987,609 1,320,011 13,667,598 143,165,417
75 143,165,417 14,987,609 1,204,976 13,782,634 129,382,784
76 129,382,784 14,987,609 1,088,972 13,898,638 115,484,146
77 115,484,146 14,987,609 971,992 14,015,618 101,468,528
78 101,468,528 14,987,609 854,027 14,133,583 87,334,946
79 87,334,946 14,987,609 735,069 14,252,540 73,082,405
80 73,082,405 14,987,609 615,110 14,372,499 58,709,906
81 58,709,906 14,987,609 494,142 14,493,468 44,216,439
82 44,216,439 14,987,609 372,155 14,615,454 29,600,984
83 29,600,984 14,987,609 249,142 14,738,468 14,862,517
84 14,862,517 14,987,609 125,093 14,862,517 0

-----End of Document----

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