8. Accounting Potentials : Five years summarized financial projection is shown below:

Particulars 1st yr. 2nd yr. 3rd Yr. 4th Yr. 5th Yr. Operating Mode: Capacity UtilizationOperating Days per Year 300 300 300 300 300Operating Hrs. per day 8 8 8 8 8Operational Results: Net Turnover ( "000"Tk) 188,644 217,150 239,20

9261,04

6282,875

Gross Profit("000" Tk) 80,693 93,011 102,530

111,943

121,250 Operating Profit ("000"Tk.) 28,782 34,554 38,090 41,194 43,778 Net Income after Tax ("000"Tk) 9,977 13,897 16,481 18,849 20,946 Depre.& Write off ("000"Tk.) 3,197 3,197 3,197 3,197 3,197 Contribution to GDP (Tk) 53,832 65,783 72,129 78,175 83,978 Growth Ratios: Sales Growth #DIV/0! 15.11% 10.16% 9.13% 8.36% Gross Profit Growth #DIV/0! 15.3% 10.2% 9.2% 8.3% Net Profit Growth #DIV/0! 39.29% 18.59% 14.37% 11.12% Total Asset Growth 215.78% 10.22% 10.34% 10.62% 11.56% Total Liabilities Growth 312.12% -3.00% -4.63% -5.71% -4.98% Cost to Sales : COG to Sales I Incl Depre.) 57.22% 57.17% 57.14% 57.12% 57.14% Admn. & Selling Exp. to Sales 27.52% 26.92% 26.94% 27.10% 27.39% Financial Expenses to Sales 6.80% 5.67% 4.90% 4.23% 3.63% Profitability Ratios: Gross Margin (Gross Profit/Sales) 42.8% 42.8% 42.9% 42.9% 42.9% Operating Margin (EBIT/Sales) 15.3% 15.9% 15.9% 15.8% 15.5% Operating Efficiency Rations ( times) Total Asset Turnover ( Net Sales /Total Asset)

1.71 1.78 1.78 1.76 1.71 Inventory Turnover ( COGS/Total Stock) 2.65 2.73 2.73 2.73 2.73 Equity Turnover ( Net Profit /Total Equity)

0.42 0.37 0.30 0.26 0.22 Liquidity Ratio Stock Turnover Days (Total Stock/(COGS/365))

137.97 133.84 133.78 133.81 133.77 Detor Days on Hand (Debtor/COGS/365) 41.42 41.43 41.43 41.44 41.47 Creditor Days on Hand (Creditor/Net Sales/365)

11.03 11.94 11.92 11.92 11.91 Cash Cycle Period (STOD+DDOH-CDOH) 168.36 163.33 163.29 163.33 163.33 Debt-Service Coverage Ratio ( Times)

1.68 1.80 1.92 2.03 2.33 Short Term Loan 62,500 62,500 62,500 62,500 62,500 Long Term Loan 18,347 14,349 9,754 4,472 0 Debt ( STD+LTD) 80,847 76,849 72,254 66,972 62,500

1

9. Debt- Service Coverage Ratio :

The analysis shows that the project will generate surplus fund after meeting its all operational obligations to service its debt burden in due time. Minimum DSCR has been estimated as 1.68 (times) during the 2nd operating year.

10. Cost Benefit Ratio :

Calculated Cost Benefit Ratio of this Project is 1.14 which is acceptable for investing fund.

22. Factors of Production : The project will procure mainly the components of the CFL and the Ballast and packing materials etc. for production of Compact Fluorescent Lamp (CFL) and Electronic Ballast. Quantities of material differ with size and type of the product. These items are mostly imported but a portion can be arranged locally. At 100% capacity utilization, the project would require total Raw and packing materials to the tune of Tk. 223.502 million equivalent. The project will generate direct employment opportunity to 156 persons besides creating indirect employment opportunity to a large number of peoples with the associated economic activities of the project.

Financial AspectChapter-

5.1 Estimated Project Cost:Sl Items of Cost Total Equi Bank No   Cost Amt % of Amt % of 1 Land & Land Development - - 100% - 0%

2

2 Building & other Civil Works - - 100% - 0%3 Machinery & Equipment 11,35

9- 0% 11,35

9100%

4 Duty, Taxes etc 690 690 100% - 0%5 Local Machinery & equipment 8,364 2,17

526% 6,189 74%

6 Erection & Installation 310 310 100% - 0%8 Vehicle 7,200 4,32

060% 2,880 40%

9 Office Equip. & Furniture & Fixture

1,002 1,002

100% - 0%10 Prel. & Pre-Production Exp .

(excl. Security Deposit) 3,248 3,24

8100% - 0%

11 Interest During Construction 573 - 0% 573 100%12 Contingencies 176 176 100% - 0%  32,92 11,9 36.21 21,00 64%

2,080. 2,08 100% - 0%  3 14, 40.0 2 60%

At the end of the yr. 1st Year 2nd 3rd Year 4th 5th Capacity Utilization (%) A. Fund Available for Operating Profit (EBIT) 28,782 34,554 38,090 41,194 43,778 Add : Depreciation & Amortization

3,197 3,197 3,197 3,197 3,197 Less : Corporate/Source Tax (5,986) (8,338) (9,888) (11,30

9)(12,567

) Add: Interest Earning on - - - - - Total Fund Available for 25,993 29,413 31,399 33,081 34,407 B. Amount Required to Service the Debt Prin.Instalment on Term 2,654 3,998 4,595 5,281 4,472 Interest on Loans 12,819 12,318 11,721 11,035 10,265 Total amount regd. to 15,472 16,316 16,316 16,316 14,737 Interest Coverage Ratio 2.03 2.39 2.68 3.00 3.35 Average Interest Coverage 2.50 times

5.6 Estimated Balance Sheet :

5.7

The projected balance sheet of the company shows that the concern is expected to maintain a healthy financial position during the operational life. Detailed calculations are as under:

Tk. in “000”

ASSETS: Constr 1st 2nd 3rd 4th 5th Capacity Utilization Year 45% 50% 55% 60% 65% Current Assets: Cash & Bank 2,080 10,484 16,201 24,038 33,548 45,889 Inventories - 40,805 45,521 50,094 54,660 59,236

3

Adv.( Wages & Salaries)

- 3,930 4,289 4,699 5,149 5,643 L/C Margin - 3,218 3,576 3,934 4,291 4,649 Advance Payment - 816 910 1,002 1,093 1,185 Others Payment - 140 156 171 187 203 Accounts Receivable - 21,408 24,645 27,153 29,638 32,142 Tot. Current Assets 2,080 80,801 95,298 111,09 128,56 148,94 Fixed Assets: Gross Fixed Assets 29,100 29,100 29,100 29,100 29,100 29,100 Less Accum.Depreciation

- 2,433 4,866 7,299 9,731 12,164 Net Fixed Asset 29,100 26,667 24,234 21,801 19,369 16,936 Investment - - - - - - Total Fixed Asset 29,100 26,667 24,234 21,801 19,369 16,936 Intangible Asset: Gross Prel & Pre- 3,820 3,820 3,820 3,820 3,820 3,820 Less : Accumulated Amortization

- 764 1,528 2,292 3,056 3,820 Total Tangible 3,820 3,056 2,292 1,528 764 - TOTAL ASSETS : 35,00 110,52 121,8 134,4 148,6 165,8 LIABILITIES & Current Liabilities S.T Loan - 62,500 62,500 62,500 62,500 62,500 Advance Received - 898 1,001 1,102 1,203 1,303 Others Payable - 4,803 6,100 6,710 7,320 7,930 Dividend - - - - - - Investment against Tax Reserve

- - - - - - CMTD - 3,998 4,595 5,281 4,472 - Corporate - - - - - - Total Current - 72,199 74,196 75,593 75,495 71,734 Long-Term Long Term Loan 21,000 14,349 9,754 4,472 0 0 Sub-total: 21,000 14,349 9,754 4,472 0 0 Total Loan & 21,000 86,547 83,950 80,066 75,495 71,734 Equity: Paid-up Capital./Share money

14,000 14,000 14,000 14,000 14,000 14,000 Tax Holiday Reserve ( Investment)

- - - - - - Retained Earnings - 9,977 23,875 40,355 59,204 80,150 Total Equity 14,000 23,977 37,874 54,355 73,204 94,150 Total Liability & 35,000 110,52 121,82 134,42 148,69 165,88 Diff: - - - - - -

Economic Aspect

4

Chapter-

6.1 Contribution to GDP:

The unit will contribute a significant amount to the Gross Domestic Product (GDP) of the country. Estimated weighted average GDP is Tk. 556.370 million, details are as under:

Tk. in “000”Particulars 1st 2nd 3rd 4th 5th

Raw & Packing Material Bank Charge and Other Import expenses

603

671

738

805

872 Factory Rent

- -

-

-

- Stores & Spares

58 144

173

173

173 Repair & Maintenance

17 58

115

115

115 Carriage Inward

- -

-

-

- Insurance (Fac)

99 99

99

99

99 Energy, Fuel, Other Lubricant

701 762

824

885

946 Other Manufacturing

Overheads 100

105

110

116

122 Office Supplies (Stationary &

Printing) 84

92

102

112

123 Postage, Telephone , Fax etc.

400 460

529

608

700 Travelling

120 144

173

207

249 Office Rent , Tax, etc.

3,097 3,716

4,460

5,352

6,422 Auditor's Fee

50 60

72

86

104 Marketing, Sales

Commission, & 28,297

32,573

35,881

39,157

42,431 Stores & Spares of Vehicle

360 432

518

622

746 Misc.Expenses ( Admn.)

250 300

360

432

518 C. Total of B

D. Contribution to GDB E. Average Yearly        

5