Project profile of
ZAIMS FISHERIES LIMITED
ZAIMS FISHERIES LIMITED
PROJECT PROFILE
Prepared By
Md Masud Kabir || Mohammad Ibrahem Khalil || Shahed
Aman
Md Zillur Rahaman || Md Ashraful Islam
|
ZAIMS FISHERIES LIMITED
Office Address: 95,
Begum Rokeya Sarani (Senpara Parbata), Chowrongi Market,
4th
Floor (Mirpur-10, Golchakkar), Mirpur, Dhaka-1216.
13 January 2011
To
The Managing Director
XYZ Bank Ltd.
68, Dilkusha C/A,
Dhaka-1000.
Sub: Application for Financial
Assistance.
Dear Sir
Please refer to the captioned
subject, we submit herewith an application alongwith necessary papers &
documents for financial assistance. Also submit herewith a feasibility report
of a project.
The summary of our project is as
follows:
- The proposed project requires financial assistance from your Bank.
- We do not enjoy any loan/ credit facility with any bank/ financial institution either in favor of the company or any of the Directors.
- ZAIMS FISHERIES LIMITED is a Private limited company.
- Total project cost has been estimated Tk.3,50,00,000.00
- Equity from sponsors is Tk. 1,50,00,000.00 of the total project.
- Expect for Bank Loan is Tk. 1,00,00,000.00 of the total project.
In this connection, we are
submitting herewith all other required papers for your kind perusal &
necessary decision. Besides, we undertake to provide any further
information/documents/support for the proposed project as and when will be
required from your end.
Thanking you,
Yours faithfully
(Md Zillur Rahaman)
Managing Director
1. Company: ZAIMS
FISHERIES LIMITED
- Name of the company: ZAIMS FISHERIES LIMITED
- Location of the Project: Vill: Shikri, Post Office: Mirgidanga, Thana & Dist: Satkhira
- Corporate Set-up (Recently has been formed as a Private Company Limited): Private Limited Company
- Date of incorporation of the company: 25-10-2010
2. Capital Structures:
I. Authorized
Capital: Amount Tk.1,00,00,000/-
Number of Shares 1,00,000
Face Value Tk.100/- Each
II.
Paid-up Capital: Tk. 20,00,000/-
3. Nature of the Project: Fish
Cultivation
a.
A Project for Fish.
b.
Shrimp, Fish Processing, Freezing & distribution to
local as well as international market in future.
4. Purpose of the project:
a)
To meet-up the increasing market demand.
b)
To export the excess production to international
market.
c)
To create employment generation.
d)
To contribute the National Economy.
e)
To earn foreign currency for national interest.
5. Paid-up Capital and
shareholding Pattern:
Sl.
No
|
Name & Address
|
Age
|
Qualification
|
Number
of Shares
|
% of Share
|
Position
|
Experience
|
01
|
Md Masud Kabir
|
31
|
MBA
|
4000
|
20%
|
Chairman
|
5 Years
|
02
|
32
|
MSS
|
4000
|
20%
|
Managing Director
|
6 Years
|
|
03
|
31
|
MBA
|
4000
|
20%
|
Director
|
3 Years
|
|
04
|
33
|
MBA
|
4000
|
20%
|
Director
|
3 Years
|
|
05
|
.32
|
MBA
|
4000
|
20%
|
Director
|
3 Years
|
6. Assets and Liabilities of
the Directors:
Sl.
No
|
Name
|
Present Occupation
|
Assets
|
Liabilities
|
Personal Networth
|
01
|
Md Masud Kabir
|
Nil
|
|||
02
|
Business
|
Tk. 40 Lacs
|
Nil
|
Tk. 40 Lacs
|
|
03
|
Service
|
Tk. 35 Lacs
|
Nil
|
Tk. 35 Lacs
|
|
04
|
Service
|
Tk. 45 Lacs
|
Nil
|
Tk. 45 Lacs
|
|
05
|
Service
|
Tk. 50 Lacs
|
Nil
|
Tk. 50 Lacs
|
7. Background of the Project:
We started fisheries project
(shrimp culture) in the years of December-2008 with a land area of 250 decimal
in the name of M/S. ZAIMS FISHERIES. From the very beginning we have started
our business in a small scale and earn an expected profit. Gradually we have
expanded our business and earn a significant profit with good market
reputation. Now we are running our existing project-I and planned to expand the
project in the name of Project-II.
Thereafter, in October 2010, we
formed a Private Limited Company under the name and style as “ZAIMS FISHERIES
LIMITED” For expansion of the existing business into large scale. All existing
business of M/S. ZAIMS FISHERIES shifted into this new company.
8. Location of the Project:
Project-I: This project located
at village-Shikri, Post Office- Mirgidanga, Thana & District: Satkhira.
Total numbers of ponds are 18 (Eighteen) with a total area about 1945 decimals.
Project-II: This project located
at village-Pasroki, Post Office- Rauuau, Thana & District: Satkhira. Total
numbers of ponds are 12 (Twelve) with a total area about 2376 decimals.
9. Main Features of Project-II:
- There are about 26 acres of land in this project and we have taken this project as lease for a period of 10 (ten) years with following all facilities and valid up to the year of 2020 on renewable basis after every 5(five) years.
- There is a 2-storied building in project area with electricity connection, bathroom, kitchen etc.
- There are 200 coconut trees in the project.
- There are 200 plum trees in the project.
- There are 22 mango trees in the project.
Technical Aspects:
a.
Location-
i.
Area of land: 4321 Decimal (3000 Dcm Lease & 1321
Dcm Own) land.
ii.
Condition of land: The land is high, flood free,
cultivatable agricultural land and very near to locality. Feasible for fish
culture Project.
iii.
Land Value: The maximum land is lease land and
promoters all ready pay to the land owners Tk.16,00,000.00 (Tk. 6,00,000
advanced & Tk. 10,00,000 for one year rent) lease purpose.
The own land of
promoters is in fish culture 1321 Decimal, Per Decimal Tk. 2500/-
iv.
Location and distance from nearby project: N/A
Project Duration: 5 Years
Nature of Land (Ponds):
There are 18 Ponds in Project-I
out of which 12 ponds taken lease and 12 Ponds in Project-II out of which 8
ponds taken lease.
Past performance:
Our sales performance since
initiation has been given below:
Year
|
Sales (Tk.)
|
No of ponds
|
2008
|
50,82,000.00
|
14
|
2009
|
75,00,000.00
|
16
|
2010
|
1,00,00,000.00
|
30
|
Financial capabilities and track record:
Potential profitability of the
project has been estimated for five years of operation to assess the financial
feasibility of the project. The financial projections include estimation of
sales, operating cost, administrative and selling expenses and financial
overheads.
- Performance of other concerns, if any, where such Directors are involved: N/A
- Details of foreign collaboration, if any: N/A
Names of Directors who will be responsible for supervising
the administrative and technical aspects, both at the implementation and
production stages: (i) Md. Zillur Rahaman, Managing Director of the company
will be responsible for supervising the administrative and technical aspects,
both at the implementation and production stages. All decisions will be come
out of the company board meeting from time to time.
Infrastructure-
i. Electricity (with source and
Required Load and Source): Available
ii. Water (with source and cost
details): Available
iii. Gas (with source and cost
details): N/A
iv. Renewable energy: N/A
Technology: (Description including availability and risk of the technology):
Key characteristics of the technology
ZAIMS FISHERIES LIMITED is a
running Fish project. It will be run by highly trained and skilled manpower.
The project is being proposed at a time when the Government has declared the
agro based sector as a thrust sector and is providing all sorts of policy and
infrastructure support.
The company believes it can play
an important role in its proposed markets. This company offers attractive
employment opportunities to poor village people who are available at relatively
in low rates when compared to other sectors of the country.
This company is striving to
provide a cost effective and high standard of production. The company is
continuing to build itself with a strategy of continuous re-education and
motivation to create an innovative and dedicated work force for articulate and
dedicated production.
The managing directors of the
company have dynamic leadership in such sector and he has necessary means of
wealth in the country to provide equity for the proposed project. Hence, all
concerned authorities may accept the proposal for the sanctioning of financial
support from your Bank.
ZAIMS FISHERIES LIMITED is
Fishery cultivation & processing company that is going to be established
with a view to offer quality fish to local market as well as international
market in future. This company is keen to take the advantage of fast growing
agro-based industry by offering professional service and price advantage to the
customers.
The local market has a huge gap
between the demand and supply of quality agro-products since fish is a basic
food item for all people. Market analysts forecast that the gap will persist
and become wider over the years ahead. The industry wide competition and
increasing service requirements forced the customers to search for quality
products at a competitive price.
ZAIMS FISHERIES LIMITED believes
that it can reduce the demand and supply gap of the market with its vast
quality fish.
ZAIMS FISHERIES LIMITED has
appropriate Technical and Management resource persons to make the company
pioneer in agro industry expecting to earn huge revenue and create employment
opportunity thus contribute socio-economic development of the country.
However, the technology involved
in this type of industry is not so complicated. There is a wide variety of
production related activities already everywhere in the country.
The Government of Bangladesh has
given utmost priority to the establishment of fish farm any where in
Bangladesh. To cope with the need of the huge demand of fish for this sector
Bangladesh Government is thinking positively to explore this type of
industries.
The project is quite environment
friendly. It does not generate any harmful or toxic wastes. It will pose no
threat on the environment; rather it will put good and hygienic effect on the
plants area atmosphere.
Technology transfer: N/A
Waste disposal and treatment:
Although the Fish wastes has no detrimental effect
on human health and has no other environmental impact, still the waste of ZAIMS
FISHERIES LIMITED are disposed in a deep tube well located at one corner of the
project.
Products:
Name
|
Opening Stock
|
Selling Stock**
|
Average weight
|
Total weight (kg)
|
Price p/kg
|
Total (Tk.)
|
Shrimp
|
30000
|
40000
|
1.30
|
70000
|
90
|
6300000.00
|
Mono Sex
|
6000
|
5000
|
0.40
|
11000
|
90
|
990000.00
|
Others
|
20000
|
15000
|
0.40
|
35000
|
100
|
3500000.00
|
Total
|
10790000.00
|
|||||
** 59% Shrimp, 9% Mono Sex, 32%
Others stock will be got at the time of sale.
Credit requirement:
This is 100% running project,
which started in the year 2008 with a very small scale. Now our project
expanded and we formed a private limited company. Now we need only working
capital in the from of Agri Loan. Our total working capital to be required for
the running period is Tk.1.00 crore.
Security:
Primary security:
- Hypothecation of feeds and fish of the project.
- Advanced dated cheques covering full exposure.
- Personal guarantee of all Directors and corporate Gurantee.
Collateral security:
As a collateral security, we are
offering following lands:
40.00 decimal lands and structure
thereon located at Savar Municipality area (CS 745, SA -263 RS-236 Mouza-Konda,
Savar. Total Market value (approx) Tk.300.00 lac. Owner of the land is the
Chairman of company Md. Masud Kabir.
Raw Materials:
Particulars
|
Taka |
Renu (Shrimp) 1,25,000 pcs @ Tk.5.00 per pcs
|
625000.00
|
Renu (Mono Sex) 10,00,000 Pcs @ Tk.1.00 per pcs
|
1000000.00
|
Ready Feed (Mono Sex) 180 tons @ Tk.25,000.00 Per ton
|
4500000.00
|
Ready Feed (Shrimps) 70 tons @ Tk.25,000.00 per tons**
|
1750000.00
|
Fuel, utility, medicine etc
|
200000.00
|
Salary & wages
|
500000.00
|
Lease rent
|
1000000.00
|
Others
|
300000.00
|
Total
|
9875000.00
|
Marketing Aspects:
- The project has been designed to produce Fish items. The annual production capacity of the project is based on 3 shifts (8 hours per shift) of operation and 365 working days in a year.
- Products/Services: Production and distribution of Fish
- Usages of the Products/Services (in detail): With the increase of per capital income of our people the gross protein demand of our country has increased remarkably. Fish products are one of the most important and vital protein sources to meet the increasing protein demand. So the product of the project would be used to meet-up the increasing protein demand of the country as well as abroad.
- User of the Products (in detail): The user of the product would be mainly the suppliers and the general consumers.
- Target Market (in detail): The target markets of the product of ZAIMS FISHERIES LIMITED are the general users & commission agents based on wholesale.
- Demand Situation and Demand Forecasting (in detail): The present demand situations of the product mix of this farm are very high in the country. As the protein demand of the country is an ever-increasing phenomenon, the demand of the fishery products and virtually the demand of the fishery items will always have an increasing trend in future.
- Supply Situation and Supply Forecasting (in detail): There are a good number of fishery farms in the country, they are producing a good number of fish of the country are increasing day by day and as such the supply of fishery products are to be increased by increasing.
- Demand Supply Gap (in detail): Although there are a good number of fishery farms in the country and they are producing a good number of fish still people’s awareness regarding optimum protein intake for getting a balanced food nutrition leads to an increased demand of fish products and as a result there exist a big gap between demand and supply of fish products.
- Distribution Channel: The products of ZAIMS FISHERIES LIMITED are distributed through the commission agents to the supplier & retailer.
In Bangladesh’s food menu fish constitutes an important
item. About 40 percent of animal protein comes from fish and fish products.
Moreover fish not only meets Bangladeshi’s protein requirements and food
delicacies but also plays a significant rule in the national economy.
Contributes about 6 percent to the country’s Gross Domestic Product (GDP) and
more than 12 percent to its export earnings. About 1.2 million people directly
and 10 million people indirectly earn their livelihood from fisheries.
As mentioned earlier, the project is envisaged to produce
fish and fishes of different varieties and species, which are of high demand in
the market. Fish in used by the farmers and
fisheries projects, while the mass people of the country commonly
consume fishes.
Therefore this is the most favorable situation for
establishing fish industry in our country. This feasibility report establishes
the very soundness of the technical, economical and marketing aspects and the
high profitability of financial aspects of the project.
Promotion & Distribution
The proposed products of the project will be marketed by
using mainly the following channels of distribution:
Project
|
→
|
Distributor
|
→
|
Whole Seller /
Consumers
|
→
|
Export
|
Project
|
→
|
Sales center
|
→
|
Retailer /
Consumers
|
Project
|
→
|
Consumer
|
Financial aspects:
Assumption for financial analysis:
Potential profitability of the
project has been estimated for five years of operation to assess the financial
feasibility of the project. The financial projections include estimation of
sales, operating cost, administrative and selling expenses and financial
overheads. The main assumptions of earning forecast are as follows;
i)
The project will work on the basis of 3 shift (8 hours
each) operation per day and 365 working days in a year.
ii)
The cost of raw materials has been calculated on the
basis of prevailing market prices while the sales prices of the proposed
products have been considered at prevailing market prices;
iii)
The cost of raw materials as well as the selling price
of the finished goods have been kept constant throughout the projected years on
the assumptions that any increase in the price of raw materials will be off-set
by the consequential increase in selling prices;
iv)
Stock for local raw materials has been considered 30
days to avoid any disruption of production;
v)
An increment @ 5% per annum has been considered in the
calculation of wages and salaries and the amount of bonus is considered to be
equal to two months’ pay;
vi)
Depreciation bas been charged on straight line method
on the following rates:
Building 5%
Machinery 10%
Other assets 20%
vii)
Capacity utilization has been assumed at 75%, 80%, 85%,
90% and 100% for the first five years of operation.
viii)
A Govt. specified developed area. To avail of the tax
holiday benefit , the company will have to invest to the extent of 40% of its
net profit.
ix)
Dividend has been estimated at the rate of 10%, on 1st
, 2nd , 3rd , 4th and 5th year of
operation respectively.
x)
Economic life of the project has been assumed to be 10
years without any major replacement.
Investment in Project: (Already invested in Project I)
Investment in fisheries Project:
Particulars
|
Tk.
|
Land purchase 1321 Decimal @
Tk.75,000.00 per bigha
|
3302500.00
|
06 Ponds Digging cost @ Tk.5.00
lac per ponds
|
3000000.00
|
Ware house (go-down) &
office
|
700000.00
|
Advanced lease payment
|
600000.00
|
One year rent for lease
lands/ponds
|
1000000.00
|
02 Motor Cycle 150 cc
|
250000.00
|
Lease Ponds Development
|
1000000.00
|
Deep Tube well
|
2000000.00
|
Sub Total
|
11852500.00
|
Working Capital requirement:
Major portion of working capital
in required for feed purchase. Every day for two times (Morning) and afternoon)
feeds have to be given for each pond. Feed quality depends on the body weights
of fish.
Working capital assessment
(for both projects)
Particulars
|
Taka
|
Renu, Food and Medicine
|
10790000.00
|
Salary & wages
|
500000.00
|
Lease rent
|
1000000.00
|
Others
|
300000.00
|
Sub-Total
|
12590000.00
|
Sales estimate (in details):
(Figures in
Thousand)
Item (S)
|
1st Year
|
2nd Year
|
3rd Year
|
4th Year
|
5th year
|
Revenue at rated capacity
|
37500
|
45000
|
54000
|
64800
|
77760
|
Capacity Utilization
|
75%
|
80%
|
85%
|
90%
|
100%
|
Revenue at Capacity Utilization
|
28125
|
36000
|
45900
|
58320
|
77760
|
Total Sales revenue:
|
28125
|
36000
|
45900
|
58320
|
77760
|
Assumptions:
Operation time: 3 shift operation of 8 hours per day and 365 working
days in a year.
Projected income statements:
Item (s)
|
1st Year
|
2nd Year
|
3rd Year
|
4th Year
|
5th year
|
|
Sales Revenue
|
28125
|
36000
|
45900
|
58320
|
77760
|
|
Cost of production
|
8247
|
8689
|
9117
|
9607
|
9776
|
|
Gross Profit
|
19878
|
27311
|
36783
|
48713
|
67984
|
|
Administrative
& Marketing Expenses
|
3135
|
3298
|
3411
|
3549
|
3549
|
|
Profit before Tax & Interest
|
16743
|
24013
|
33372
|
45164
|
64435
|
|
Financial Expenses
|
248
|
267
|
286
|
305
|
324
|
|
Net operating profit
|
16495
|
23746
|
33086
|
44859
|
64111
|
|
T a x H o l i d a y
|
||||||
Investment (40%)
|
6598
|
9498
|
13234
|
17944
|
25644
|
|
Net Profit after investment
|
9897
|
14248
|
19851
|
26916
|
38467
|
|
Return on investment
|
0
|
594
|
855
|
1191
|
1615
|
|
Net profit after return on
investment
|
9897
|
13654
|
18996
|
25724
|
36852
|
|
Dividend
|
990
|
1425
|
1985
|
2692
|
3847
|
|
Retained earnings
|
8907
|
12823
|
17866
|
24224
|
34620
|
|
Cumulative retained earnings
|
8907
|
21730
|
39596
|
63820
|
98440
|
|
Debt-service coverage ratio: 50:50
Sensitivity analysis:
Forecasted sales 10%
increase Pro. Cost
Item (s)
|
1st Year
|
2nd Year
|
3rd Year
|
4th Year
|
5th year
|
Sales Revenue
|
28125
|
36000
|
45900
|
58320
|
77760
|
Cost of production
|
9072
|
9558
|
10029
|
10567
|
10753
|
Gross Profit
|
19053
|
26442
|
35871
|
47753
|
67007
|
Administrative & Marketing Expenses
|
3135
|
3298
|
3411
|
3549
|
3549
|
Profit before Tax & Interest
|
15918
|
23144
|
32460
|
44204
|
63458
|
Financial Expenses
|
248
|
267
|
286
|
305
|
324
|
Net operating profit
|
15670
|
22877
|
32174
|
43899
|
63133
|
T a x H o l i d a y
|
|||||
Investment (40%)
|
6268
|
9151
|
12870
|
17559
|
25253
|
Net Profit after investment
|
9402
|
13726
|
19304
|
26339
|
37880
|
Return on investment (6.00%)
|
0
|
564
|
824
|
1158
|
1580
|
Net profit after return on
investment
|
9402
|
13162
|
18481
|
25181
|
36300
|
Dividend
|
940
|
1373
|
1930
|
2634
|
3788
|
Retained earnings
|
8462
|
12354
|
17374
|
23705
|
34092
|
Cumulative retained earnings
|
8462
|
20816
|
38189
|
61895
|
95987
|
Forecasted sales 5%
increase Pro. Cost
Item (s)
|
1st Year
|
2nd Year
|
3rd Year
|
4th Year
|
5th year
|
Sales Revenue
|
26718.75
|
34200
|
43605
|
55404
|
73872
|
Cost of production
|
8659
|
9124
|
9573
|
10087
|
10265
|
Gross Profit
|
18060
|
25076
|
34032
|
45317
|
63607
|
Administrative & Marketing Expenses
|
3135
|
3298
|
3411
|
3549
|
3549
|
Profit before Tax & Interest
|
14925
|
21778
|
30621
|
41768
|
60058
|
Financial Expenses
|
248
|
267
|
286
|
305
|
324
|
Net operating profit
|
14677
|
21511
|
30335
|
41463
|
59734
|
T a x H o l i d a y
|
|||||
Investment (40%)
|
5871
|
8605
|
12134
|
16585
|
23894
|
Net Profit after investment
|
8806
|
12907
|
18201
|
24878
|
35841
|
Return on investment (6.00%)
|
0
|
528
|
774
|
1092
|
1493
|
Net profit after return on
investment
|
8806
|
12378
|
17426
|
23786
|
34348
|
Dividend
|
881
|
1291
|
1820
|
2488
|
3584
|
Retained earnings
|
7925
|
11616
|
16381
|
22390
|
32256
|
Cumulative retained earnings
|
7925
|
19541
|
35922
|
58312
|
90569
|
SWOT Analysis
1. Strengths
The
promoters of the company are highly educated and experience in business
Management, technical & operational affairs. All of them are financially
sound and have the ability of equity participation against their respective
shareholdings in the company this project enjoys a good communication network
with all infrastructure facilities being available this will enable the project
to run its procurement and marketing activities with cost-benefit advantage.
Thus the project will be an efficient unit to the same industry. Moreover the
following will be treated as strengths of this project;
·
Very good quality
of local raw materials and supplies
·
Ideal production
capacity.
·
Low labor costs,
availability of workers.
·
The promoters are
well versed and experienced to run industries.
·
Good
communication network.
·
Gradual
enhancement of production by progressively using unutilized capacity.
2. Weaknesses
To
cope with the market competitors the project should high volume of production,
which requires adequate financial support. It involves good bit of risks at the
initial stage.
·
Equipment and
technology require to be properly selected to attain international standards
and to combat competitors. Unless it judiciously done, it may hamper attained.
·
Efficient
marketing channel is difficult to be established initially. So quality and
price advantage should be the tool to combat this factor.
·
Appropriate
product mix and combination of raw materials are vital. Alert vigilance by
experts is needed here.
3. Opportunities
·
Huge local market
demand that is expanding by leaps and bounds.
·
Import
substitution.
·
Reduction of
trade balance deficit.
·
Development of
demand in the foreign market in future.
·
Availability of
raw materials locally.
·
Employment
generation.
·
Ease of help of
Government officials in technological and technical matter.
·
Environment
friendly.
·
Contribution to
GDP.
·
Linkage age
support effect leading to further employment generation and GDP growth.
4. Threats:
In
recent time, some new fish cultivators’ farms are finding it difficult to sell
their products in the market due to stiff competition from the established
groups. Local cultivators/farmers are the main competitors of this project in
the local market. The market is increasingly becoming competitive and looking
to cost cutting. In this situation some dishonest firms may produce low quality
products, which will lead to huge market dissatisfaction of the customer. This
dissatisfaction may become a threat to this sector. Sincere collective effort
may kill this threat and can be a good example for the national economy.
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