Agro Farming - A NEW HORIZON

8/9/2019 Agro Farming - A NEW HORIZON

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a gro farming A NEW HORIZON


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June 4, 2014

Md. Iftekharul AminAssistant ProfessorInstitute of Business AdministrationUniversity of Dhaka

Dear Sir

We, a group of students from BBA 20 th , have prepared this term paper on our business plan for

The Farmers Group (village based business) as a requirement for completion of the course.

We have developed the business plan and the marketing strategy was based on the information

collected and our own understanding of the making of marketing plans.

Preparing this report has been an important experience for us, as we have thoroughly mastered

the various concepts taught in the course through exposure to real world marketing. We

appreciate your teaching us such an important area of marketing so extensively.

Please note that this report has been prepared under your supervision. Under no circumstances,

will this report be produced for any other IBA course ever. No part of this report will be shared

or republished without your authorization.

Sincerely yours,

Rafi Ishtiaq Piyal ZR 80

Md. Ruhul Arif Amit ZR 92

Jonayed Nasir Anik ZR 102

Md. Rafi Nizamee ZR 113


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Introduction

Farmers Group is being formed from the acquisition of two successful vegetable farms,Green Acres Vegetable Farm and Mobile Farmers Vegetable Farm. The latter has long-researched horticultural and agronomic techniques, as well as compost and soil blendingtechnology now being promoted by the government agencies.

The company is a combination of cutting edge, highest quality, and efficient foodtechnology and production. It is committed to the improvement of food taste andnutritional quality. It is being founded to build upon an extensive array of biological andhorticultural education, experience, and the research of its founders. This is furthercoupled with the experience of Mr. Jonayed Nizamee Anik, the current manager of Mobile

Farmers Vegetable Farm, and consultation with the present owner of Green AcresVegetable Farm, Dhaka.

The Company

Farmers Group is a Munshiganj-based company, located in the village of Arial, whosemission is to provide high quality, nutritional, and flavorful vegetables and Potatoes forconsumption in both near and remote regions of Bangladesh. Additionally the companywill provide high quality planting materials for use nationwide.

Farmers Group is the buyout and merger of two successful vegetable farms. The ideabehind the business is to provide healthy and delicious vegetables and fruit to the public.In addition to vegetables and fruits, the company plans to produce and market manurecompost garden amendment products.

Farmers Group's management team is led by Mr. Mr. Jonayed Nizamee Anik as BusinessManager, who has extensive knowledge of the industry. The company expects toemploy five temporary employees during the equipment re-location phase, fouremployees on a permanent basis, and three part-time employees.

Products

Farmers Group's plans to concentrate on vegetables as its primary product. This includesgrowing carrots, romaine lettuce, leeks, red onions, summer squash, spinach, pumpkins,winter squash, globe beets, and winter greens. The company's farm, will have a capacitysufficient to produce in excess of 20,000 lbs. of vegetables per year.

The company plans to utilize traditional and more advanced plant technologies to producenew cultivars of Potatoes and lima beans with locally-adapted superior characteristics forthe Gulf-South growing area.


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This strategy will allow Farmers Group to produce crops during most of the year and willallow double cultivation of the greenhouses with almost no additional heating necessaryin the winter months.

The Market

Over the past decade the market for organic food has grown by 15% to 20% and everyyear 40% of Bangladesh consumers occasionally reach for something labeled organic.Sales for organic foods are expected to top BDT 11 billion this year. Sales by farmers'markets have increased by 79% since 1994, to 3,137 markets in all 50 states, and thenumber of farmers who sell at them has more than tripled to 670,000. About three millionAmericans a week now get their fresh food directly from the farmers who grew it. Thismakes for an excellent environment for an industry participant such as Farmers Groupthat is willing to compete in a niche market and be first to the market with new products.

Financial Considerations

The company is seeking BDT 8,300,000 in both short-term and long-term loans to financethe purchase of Farmers Group's new farm, upgrade the facilities, and cover start-upexpenses and first year losses. It is estimated that the company will begin to make aprofit in Year 2 of operations. The company does not expect to have any cash flowproblems during the first four years of operations.


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1.1 Mission ........................................................................................................................................ 5

Company Summary ................................................................................................................................... 5

2.1 Start-up Summary ................................................................................................................. 5

2.2 Company Locations and Facilities .................................................................................... 7

Products .................................................................................................................................................... 7

3.1 Product Description ............................................................................................................... 8

3.2 Technology ................................................................................................................................ 9

3.3 Future Products ....................................................................................................................... 9

Market Analysis Summary ........................................................................................................................ 9

4.1 Market Segmentation ......................................................................................................... 104.2 Industry Analysis .................................................................................................................. 11

4.3 Target Market Segment Strategy ................................................................................... 11

Strategy and Implementation Summary ................................................................................................. 13

5.1 Competitive Edge ................................................................................................................. 13

5.2 Marketing Strategy .............................................................................................................. 13

5.2.1 Pricing Strategy ................................................................................................................. 14

5.3 Sales Strategy ....................................................................................................................... 14

5.4 Strategic Alliances ................................................................................................................ 14

Sales Forecast.......................................................................................................................................... 15

Management Summary .......................................................................................................................... 16

7.1 Personnel Plan ....................................................................................................................... 17

Financial Plan Summary .......................................................................................................................... 18

8.1 Start-up Funding .................................................................................................................. 18

8.2 Important Assumptions ..................................................................................................... 21

8.3 Break-even Analysis ............................................................................................................ 23

8.4 Projected Profit and Loss ................................................................................................... 24

8.5 Projected Cash Flow ............................................................................................................ 28

8.6 Projected Balance Sheet .................................................................................................... 31

8.7 Business Ratios ..................................................................................................................... 34

Appendix ................................................................................................................................................. 39


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1.1 MissionFarmers Group is a Munshiganj-based company, whose mission is to provide high quality,

nutritional, and flavorful vegetables and Potatoes for consumption in both near andremote regions of Bangladesh. Additionally the company will provide high quality plantingmaterials for use nationwide.

Company SummaryFarmers Group is the buyout and merger of two successful vegetable farms. The ideabehind the business is to provide healthy and delicious vegetables and fruit to the public.In addition to vegetables and fruits, the company plans to produce and market manurecompost garden amendment products.

2.1 Start-up SummaryProjected revenues for Year 1 to Year 5 are BDT -400,000, BDT 85,000, BDT 500,000,BDT 708,000 and BDT 825,000 respectively. Additionally the company estimates thatonce fully operational, income per product, per annum would be as follows; vegetable(BDT 500,000) manure (BDT 200,000) and horticulture (BDT 100,000).


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Start-up Requirements

Start-up Expenses

Legal BDT 19,0000

Facilities modification BDT 3000,0000

Seed BDT 6000

Organic Herbicides/Pesticides BDT 5,0000

Consultants BDT 25,0000

Insurance BDT 10,0000

Research and development BDT 25,0000

Expensed equipment BDT 250,0000

Other BDT 50,0000

Total Start-up Expenses BDT 684,6000

Start-up Assets

Cash Required BDT 245,4000

Start-up Inventory BDT 150,0000


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Other Current Assets BDT 250,0000

Long-term Assets BDT 5000,0000

Total Assets BDT 1,145,4000

Total Requirements BDT 1,830,0000

2.2 Company Locations and FacilitiesThe farm is located in the village of Arial approximately 4.5 miles outside of Jasper.

The operation will utilize:

One large greenhouse, enclosing the vegetable area. Horticultural greenhouse. Filters, water treatment devices. Backwash facilities. Outdoor vegetable facilities. Business office building.

An additional portion of the operation will be the manure composting facility. Local andregional dairy operations have trouble with manure accumulations, and the companyhopes to enter into contracts in removing the manure. Farmers Group will then turn thisinto a saleable product. The company plans to supply the region's nursery outlets with atop-quality, premium garden and soil amendment product for area horticulture.

ProductsWhile at Mobile Farmers Vegetable Farm Mr. Jonayed Nizamee Anik, steadily used andexperimented with compost and fertilized with manure of different kinds. The mostimportant things with manure usage is to eliminate the viable weed seed drawback bythoroughly composting the manure, to add enough cellulose on product to bring it to theproper ratio and to bring its water content to proper levels. A properly composted manureproduct has no seeds that will germinate and proliferate in it. Additionally, a properlycomposted manure product has something a chemically formulated synthetic fertilizerdoes not have: enzymes. Enzymes are critical for producing a truly nutritious and superiorflavored product. Research has shown that the superior flavor of a fruit or vegetable isclosely related to vitamin content and folic acid content in green vegetables.


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The state-of-the-art vegetable equipment starting up in the new location utilizesrevolutionary harvest designs that:

Allow faster, longer growth Cut the harvest labor by over 80%

Cut the harvest time and by so doing:o Decrease loss in weight gain, ando Eliminate weight loss from shock.

3.1 Product DescriptionVegetables

Farmers Group's first line of production will be the green vegetable and red vegetable.During the summer months Farmers Group will be growing carrots, romaine lettuce,leeks, red onions, summer squash, and spinach. In the fall, production will center onpumpkins, winter squash, globe beets and winter greens. With the growth of the popularorganic food niche, and the federal government's new organic labeling policy, FarmersGroup will focus its produce on the intermediate organic label. This means thatapproximately 70% of the food production process will be organic and all foods producedby Farmers Group will be eligible for the "contains organic ingredients" label. Thecompany's farm will have a capacity sufficient to produce in excess of 20,000 lbs. ofvegetables per year.

Potatoes

The company's more technical horticultural aspects include efforts to utilize traditionaland more advanced plant technologies to produce new cultivars of crops such as potatoesand lima beans with locally-adapted superior characteristics for the Gulf-South growingarea. Flavor, disease resistance, adaptability to green-house culture, fall and winterseason production are factors being combined in greens cultivation to tap into the BDT2.99 pint berry market of the fall and winter.

Farmers Group's strategy is a combination of the two technologies during the cool wintermonths which will allow the utilization of normally wasted space in the greenhouses forthe high price winter greens production. This will allow double cultivation of thegreenhouses with almost no additional heating necessary in this climate.


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3.2 TechnologyThe company is currently seeking contact with Munshiganj universities in order to learnabout and acquire new hybrids of Potatoes and vegetables that are hardier and growfaster in our local microclimates. These and other available species and systems will be

constantly tracked.

In addition to the above, the company is seeking contacts at Universities in Italy andGermany that are involved in greens, and will continue the quest for the best flavored,large, and firm fall and winter Potatoes.

Currently, Farmers Group is conducting research to test certain clay-sand-manuremixture levels to obtain better, cheaper bedding and agronomic soil mixtures that aremore effective than the standard used in the industry in Munshiganj (Pine bark mulch-composted).

3.3 Future ProductsIn the meantime, the company would like to explore the possibilities of carp production.Farmers Group believes this to be a high revenue venture with retail prices running inexcess of BDT 15,000 per pound in most places. The company also believes thatif carp production is successful then it could become the number one endeavor of FarmersGroup.

Currently there is a defunct fish farming production facility with all the necessary capitalequipment approximately two miles from the current farm. Purchase of this facility wouldallow Farmers Group to begin production and to capitalize on this higher margin product.What makes this most attractive is the two ventures have significant joint cost potential,allowing for a reduction in marginal costs for all products and creation of real economiesof scale that would provide Farmers Group with a competitive advantage.

Market Analysis SummaryAt a time when eating has become a political statement, the government is paying up toBDT 19 billion a year to subsidize commodity crops in a glutted global market. Federalofficials say that nearly 40% of all farm income now comes directly from governmentsubsidies, and the farm bill signed by President Bush this year will pay BDT 190 billionover 10 years, which includes BDT 83 billion in new spending. However, there are twomarket niches that are growing at an amazing rate, the organic market and the simplefarmers' market.

The organic market provides less than 2% of the nation's food supply and takes up lessthan 1% of its cropland. But organic farms are flourishing as never before. Over the pastdecade the market for organic food has grown by 15 to 20% and every year 40% ofBANGLADESH consumers occasionally reach for something labeled organic. Sales for


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organic foods are expected to top BDT 11 billion this year. Conglomerates as big as Heinzand General Mills are now launching or buying organic lines and selling them inmainstream supermarkets.*

With no subsidies and no middle men, farmers' markets have increased by 79% since

1994, to 3,137 markets in all 50 states, and the number of farmers who sell at them hasmore than tripled to 67,0000, the Agriculture Department has reported. About threemillion Americans a week now get their fresh food directly from the farmers who grew it."Right now, green markets are growing faster than anything in agriculture," said Dr.Steven Blank, a farm economist at the University of California at Davis and the author ofthree books on the subject.

These numbers, of course, represent a very thin slice of the big pie of national food.Farmers' markets reported about BDT 1 billion in sales last year, compared with morethan BDT 2000 billion in overall farm revenue. Barely 3% of the nation's two millionfarmers sell some of what they grow directly to consumers.

But in an era of big-box food stores, when 10 major grocery chains control the purchaseof 50% of fresh food, the proliferation of open-air markets has come out of nowhere,giving more consumers an option and allowing many small farmers to stay in business.**

With these trends in mind, Farmers Groups will concentrate on:

Wholesale live vegetable markets nationwide that sell organic produce. Fresh farmers' markets. Fall and winter greens market. Nursery outlets selling composted manure.

*Source: Certified Organic Geoffrey Cowley NEWSWEEK September 30, 20000.

**Source: Farmers Markets Booming Across US Timothy Egan New York Times,September 29, 20000.

4.1 Market SegmentationThe target customers include oriental vegetable markets demanding organic and semi-organic green vegetables, vegetable processors, and private individual buyers throughdirect selling and farmers markets. The company will continue to service the existing

customers of the purchased vegetable farms. In its greens production the company willtarget virtually all main food outlets. The company plans to use the Internet as one of itsmarketing channels in the future.

The company's target customers will be as follows:


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Vegetables:

Oriental vegetable markets demanding organic and semi-organic vegetables. Vegetable processors Munshiganj Village Defense Party

People approaching the farm Roadside stands and farmers' markets

Product-Bagged Manure:

Nursery and Garden Centers. Private customers approaching facility. Bulk customers.

The company will also take over customers from the previous owner of the vegetable

facility. Farmers Group has an established list of present customers of Dhaka's vegetablefarm, which is a major asset to the sales of the company.

4.2 Industry AnalysisMunshiganj is one of the premier farming areas of Bangladesh. This creates an intenselycompetitive environment with a large number of industry participants. Since almost all ofthe produce is considered to be commodities, and large scale buyers are moreconsolidated than the farmers themselves, overall margins are small and rivalries forwholesaler contracts are strong. Competitive threats come from three main segments:

Imported vegetables of lower quality> Mississippi pound raised vegetables Munshiganj vegetable producers

Direct competition in the individual buyers’ market segment comes from three farms inthe immediate area including the Anniston farm, Organics-To-You farm, and the TerranceLivingston vegetable farm. Each of these competitors has produce stands as well asselling to local farmers' markets. However, with the exception of Organics-To-You Farm,none of the others focus on a niche market and depend heavily on federal subsidies.

4.3 Target Market Segment StrategyThe Market Analysis Pie shown below reflects the total number of potential customers forFarmers Group. The number of Oriental markets and vegetable processors representnational estimates of industry participants, whereas the number of individual buyersrepresents the estimated annual number of individuals that will be driving by the farm.


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Market Analysis

Year 1 Year 2 Year 3 Year 4 Year 5

PotentialCustomers

Growth CAGR

Vegetableprocessors

3% 5,0000 5,150 5,305 5,464 5,628 3.000%

Orientalvegetablemarkets

1% 25,0000 25,250 25,503 25,758 26,016 1.000%

Individualbuyers

5% 3000,0000 315,0000 330,750 347,288 364,652 5.000%

Total 4.68% 330,0000 345,4000 361,558 378,510 396,296 4.68%


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Strategy and Implementation SummaryThe Farmers Group strategy is to profitably and efficiently utilize present and futureagricultural technology in the production of vegetables. The company, by acquiring anexisting profitable vegetable farm with all the necessary custom-innovated equipment,will gain a significant industry advantage. Additional application and utilization ofhorticultural technology in the production of Potatoes will allow double utilization of theclimate controlled portion of the overhead. Farmers Group hopes to consolidateconsiderable goodwill already created by exercising the option of not adding another high-production facility to the present supply-demand scenario.

The company's goals in the first year are to:

Prepare the future site. Relocate and expand Green Acres vegetable system and get it operational.

Integrate greens culture into the system. Have the composting system in full production by early spring of the second year.

The company's long-term plan is to phase out whichever products are least lucrative andreplace them with products that are practical and cost efficient.

5.1 Competitive EdgeFarmers Group's main competitive advantages are:

Efficient production utilizing greenhouses. Reduced overhead by fully realizing crop output potential and economies of scale

through joint costs. Knowledge due to research since 1988.

5.2 Marketing StrategyFarmers Group will initially market and supply its products to target customers. Thecompany is further exploring marketing opportunities on the Internet. To this extent, thecompany would like to set up a website to market its products.

The company will utilize aggressive advertising strategies to further market its products.These strategies include the promotion of products through the sponsoring of spots oncooking shows and exhibitions, and also engaging prominent chefs to help promote thisfledgling industry.


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5.2.1 Pricing StrategyThe company sets its pricing based on market rates as far as vegetable products areconcerned.

Farmers Group's pricing for Potatoes will exceed the average market price for thefollowing reasons:

Taste sampling at outlets will be encouraged Unparalleled flavor superiority will addict greens tasters Promotion of pesticide-free, fumigant-free cultural techniques of soil,

environment, ozone, and health-friendly production techniques

5.3 Sales StrategyAt Farmers Group, the sales process is primarily the same for vegetables as it is forcomposting products, in that both products will be mainly sold through wholesalemarketing. As in the past, live shipments will be delivered by contract carriers in specialoxygenated tanks carrying 80,000 vegetables or more, and will be continued asdemanded. Farmers Group's bagged manure products will be delivered and unloaded insizable wholesale quantities by the pallet.

Smaller, more local orders will significantly increase the overall sales when the 3000-450live vegetables carrying tank system is put into service late in 20000 or early in 20001.

The company's average sales cycle from first contact to closing of the sale isapproximately 3 to 12 days for vegetable products. Farmers Group plans to shorten thiscycle. Furthermore, the company estimates that from first contact to sale conclusion, thecycle for fresh Potatoes will run 3 days or less. Composted products sale cycle should runfrom 3 to 12 days.

Direct sales contacts of vegetable markets by delivery personnel, as well as cold callingby telephone of potential market outlets, will also be employed.

5.4 Strategic AlliancesThe company has strategic alliances with:

Munshiganj District Horticulture Department Munshiganj District College Biology Department Dr. Md. Jafarullah - Vegetable Specialist Muntasir Ahmed - Horticultural Inspection Munshiganj District Education Officer Mobile Nursery Center


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Sales ForecastThe following table and charts show our projected sales.


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Sales Forecast


Sales

Sales BDT575,0000

BDT7000,0000

BDT850,0000

BDT889,1000

BDT927,331

Other BDT 0 BDT 0 BDT 0 BDT 0 BDT 0

Total Sales BDT575,0000

BDT7000,0000

BDT850,0000

BDT889,1000

BDT927,331

Direct Cost of Sales Year 1 Year 2 Year 3 Year 4 Year 5

Sales BDT391,0000

BDT478,1000

BDT578,850

BDT601,032

BDT627,803


Subtotal Direct Cost ofSales

BDT391,0000

BDT478,1000

BDT578,850

BDT601,032

BDT627,803

Management SummaryFarmers Group's management team is led by Mr. Mr. Jonayed Nizamee Anik, Business

Manager, and the current manager of Mobile Farmers Vegetable Farm, who has extensiveknowledge of the industry and has been tracking vegetable trends for 30 years.

The company's management philosophy is based on responsibility and mutual respect.Farmers Group has an environment and structure that encourages productivity andrespect for customers and fellow employees.


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7.1 Personnel PlanOverall, Farmers Group will have 12 personnel. The company expects to employ 5temporary employees during the equipment re-location phase, 4 employees on apermanent basis, and 3 part-time employee. The Farmers Group team is organized into

three groups:

Management

Management will be responsible for supervising and participating in the daily operationsof the facility. Management consists of:

Mr. Jonayed Nizamee Anik, Business Manager, Full Time Terry Howard, Executive Director, Full Time Kevin Perry, Management Trainee, 3/4 Time Victor Green, Management Trainee, 1/4 Time

Daily Maintenance

This group will consist of the following:

Henry Jones, Logistical Engineer, Full Time Colin Henry, Heavy Equipment, Full Time Michael Owen, Welder, 1/2 Time

Contract Personnel

They will be utilized initially for the moving and setting up of the vegetable farm,greenhouses, and the building of the manure composting facility.

Personnel Plan


Business Manager BDT

25,0000

BDT

30,0000

BDT

30,0000

BDT

30,0000

BDT

30,0000

Executive Director BDT25,0000

BDT30,0000

BDT30,0000

BDT30,0000

BDT30,0000


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Manager Trainee BDT9,0000

BDT6,0000

BDT6,0000

BDT6,0000

BDT6,0000

Manager Trainee BDT4,0000

BDT6,0000

BDT6,0000

BDT6,0000

BDT6,0000

Logistic engineer BDT18,0000

BDT18,0000

BDT18,0000

BDT18,0000

BDT18,0000

Heavy equipment BDT18,0000

BDT18,0000

BDT18,0000

BDT18,0000

BDT18,0000

Welder BDT3,5000

BDT3,0000

BDT3,0000

BDT3,0000

BDT3,0000

Contract workers BDT15,0000

BDT 0 BDT 0 BDT 0 BDT 0

Total People 7 7 7 7 7

Total Payroll BDT117,5000

BDT111,0000

BDT111,0000

BDT111,0000

BDT111,0000

Financial Plan SummaryThe following topics and tables outline our financial plan.

8.1 Start-up FundingFunding Requirements and Uses

The company is seeking to raise of BDT 8,300,000 for the purpose of financing theacquisition of the Green Acres Vegetable Farm and Mobile Farmers Vegetable Farm,facilities modifications, equipment, and funding operating expenses. Another BDT10,000,000 will be invested in the company by its four co-owners. The following is abreakdown of how the funds will be used:


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Breakdown of Use ofFunds

Acquisition:

Property BDT 1,3000,0000Equipment System BDT 4000,0000

Sub-total BDT1,7000,0000

Operating Expenses:

Salaries BDT 80,0000

Marketing and promotion BDT 10,0000

Other operating expenses BDT 10,0000

Sub-total BDT 1000,0000

Total BDT1,8000,0000

Start-up Funding

Start-up Expenses to Fund BDT 684,6000

Start-up Assets to Fund BDT 1,145,4000

Total Funding Required BDT 1,830,0000

Assets

Non-cash Assets from Start-up BDT 9000,0000

Cash Requirements from Start-up BDT 245,4000


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Additional Cash Raised BDT 0

Cash Balance on Starting Date BDT 245,4000

Total Assets BDT 1,145,4000

Liabilities and Capital

Liabilities

Current Borrowing BDT 4000,0000

Long-term Liabilities BDT 4000,0000

Accounts Payable (Outstanding Bills) BDT 30,0000

Other Current Liabilities (interest-free) BDT 0

Total Liabilities BDT 830,0000

Capital

Planned Investment

Investor 1 BDT 250,0000




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Other BDT 0

Additional Investment Requirement BDT 0

Total Planned Investment BDT 1,0000,0000

Loss at Start-up (Start-up Expenses) (BDT 684,6000)

Total Capital BDT 315,4000

Total Capital and Liabilities BDT 1,145,4000

Total Funding BDT 1,830,0000

8.2 Important Assumptions

Nature and Limitation of Projections

This financial projection is based on sales volume at the levels described in the salesforecast section and presents, to the best of management's knowledge, the company'sexpected assets, liabilities, capital, and revenues and expenses. The projections reflectmanagement's judgment of the expected conditions and its expected course of actiongiven the hypothetical assumptions.

Nature of Operations

The company is in the business of vegetable farming, greens cultivation, and composting.The company expects to be operating in 20000.

Revenues

The company's revenue is derived primarily from the sale of vegetables, Potatoes, andbagged composted manure products.

Expenses


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The company's expenses are primarily those of salaries, utilities, and insurance costs.Other expenses are based on management's estimates and industry averages.

General Assumptions


Plan Month 1 2 3 4 5

Current Interest Rate 7.000% 7.000% 7.000% 7.000% 7.000%

Long-term InterestRate

7.000% 7.000% 7.000% 7.000% 7.000%

Tax Rate 20.83% 20.000% 20.83% 20.000% 20.83%

Other 0 0 0 0 0


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8.3 Break-even AnalysisThe company's break-even analysis is given below.

Break-even Analysis

Monthly Revenue Break-even BDT 36,974

Assumptions:

Average Percent Variable Cost 68%

Estimated Monthly Fixed Cost BDT 11,832


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8.4 Projected Profit and LossAs the profit and loss table shows, Farmers Group expects a steady growth in profitabilityover the next few years.


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Pro Forma Profit and Loss


Sales BDT575,0000

BDT7000,0000

BDT850,0000

BDT889,1000

BDT927,331

Direct Cost of Sales BDT391,0000

BDT478,1000

BDT578,850

BDT601,032

BDT627,803

Other BDT10,0000

BDT10,0000

BDT10,0000

BDT10,0000

BDT10,0000

Total Cost of Sales BDT401,0000

BDT488,1000

BDT588,850

BDT611,032

BDT637,803

Gross Margin BDT174,0000

BDT211,9000

BDT261,150

BDT278,068

BDT289,528

Gross Margin % 30.26% 30.27% 30.72% 31.28% 31.22%

Expenses

Payroll BDT117,5000

BDT111,0000

BDT111,0000

BDT111,0000

BDT111,0000

Sales and Marketingand Other Expenses

BDT11,4000

BDT11,1000

BDT16,550

BDT15,3000

BDT17,550

Depreciation BDT 0 BDT 0 BDT 0 BDT 0 BDT 0


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Gas and Oil BDT2,040

BDT3,0000

BDT3,0000

BDT3,0000

BDT3,0000

Utilities BDT6,0000

BDT6,0000

BDT6,0000

BDT6,0000

BDT6,0000

Insurance BDT5,040

BDT5,5000

BDT5,5000

BDT5,5000

BDT5,5000

Payroll Taxes BDT 0 BDT 0 BDT 0 BDT 0 BDT 0


Total OperatingExpenses

BDT141,980

BDT136,6000

BDT142,050

BDT140,8000

BDT143,050

Profit Before Interestand Taxes

BDT32,020

BDT75,3000

BDT119,1000

BDT137,268

BDT146,478

EBITDA BDT

32,020

BDT

75,3000

BDT

119,1000

BDT

137,268

BDT

146,478

Interest Expense BDT54,664

BDT47,845

BDT39,095

BDT32,095

BDT26,495

Taxes Incurred BDT 0 BDT 5,491 BDT16,668

BDT21,035

BDT24,996

Net Profit (BDT22,644)

BDT21,964

BDT63,337

BDT84,139

BDT94,987

Net Profit/Sales -3.94% 3.14% 7.45% 9.46% 10.24%


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8.5 Projected Cash FlowThe chart and table below contain the cash flow assumptions and projections for FarmersGroup during the first five years of plan implementation. Year 1 monthlies are presentedin the appendix.

Pro Forma Cash Flow


Cash Received

Cash from Operations

Cash Sales BDT143,750

BDT175,0000

BDT212,5000

BDT222,275

BDT231,833

Cash from Receivables BDT431,250

BDT525,0000

BDT637,5000

BDT666,825

BDT695,498


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Subtotal Cash fromOperations

BDT575,0000

BDT7000,0000

BDT850,0000

BDT889,1000

BDT927,331

Additional CashReceived

Sales Tax, VAT,HST/GST Received

BDT 0 BDT 0 BDT 0 BDT 0 BDT 0

New Current Borrowing BDT 0 BDT 0 BDT 0 BDT 0 BDT 0

New Other Liabilities

(interest-free)


New Long-termLiabilities


Sales of Other CurrentAssets


Sales of Long-termAssets


New InvestmentReceived

BDT 0 BDT 0 BDT97,0000

BDT 0 BDT 0

Subtotal Cash Received BDT575,0000

BDT7000,0000

BDT947,0000

BDT889,1000

BDT927,331

Expenditures Year 1 Year 2 Year 3 Year 4 Year 5

Expenditures fromOperations


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Cash Spending BDT117,5000

BDT111,0000

BDT111,0000

BDT111,0000

BDT111,0000

Bill Payments BDT408,920

BDT498,803

BDT668,927

BDT694,140

BDT720,435

Subtotal Spent onOperations

BDT526,420

BDT609,803

BDT779,927

BDT805,140

BDT831,435

Additional Cash Spent

Sales Tax, VAT,

HST/GST Paid Out


Principal Repayment ofCurrent Borrowing

BDT54,0000

BDT1000,0000

BDT1000,0000

BDT25,0000

BDT35,0000

Other Liabilities PrincipalRepayment


Long-term LiabilitiesPrincipal Repayment

BDT 0 BDT25,0000

BDT25,0000

BDT50,0000

BDT50,0000

Purchase Other CurrentAssets

BDT 0 BDT 0 BDT 0 BDT 0 BDT20,0000

Purchase Long-termAssets


Dividends BDT 0 BDT25,0000

BDT20,0000

BDT10,0000

BDT10,0000


32/46

Subtotal Cash Spent BDT580,420

BDT759,803

BDT924,927

BDT890,140

BDT946,435

Net Cash Flow (BDT5,420)

(BDT59,803)

BDT22,073

(BDT1,040)

(BDT19,104)

Cash Balance BDT239,980

BDT180,177

BDT202,250

BDT201,210

BDT182,106

8.6 Projected Balance SheetWe project solid cash balance and net worth over the years of the plan.

Pro Forma Balance Sheet


Assets

Current Assets

Cash BDT239,980

BDT180,177

BDT202,250

BDT201,210

BDT182,106

AccountsReceivable


Inventory BDT 55,760 BDT 24,586 BDT29,767

BDT31,136

BDT32,475

Other CurrentAssets

BDT250,0000

BDT250,0000

BDT250,0000

BDT250,0000

BDT270,0000


33/46

Total CurrentAssets

BDT545,740

BDT454,763

BDT482,017

BDT482,346

BDT484,581

Long-termAssets

Long-termAssets

BDT5000,0000

BDT5000,0000

BDT5000,0000

BDT5000,0000

BDT5000,0000

AccumulatedDepreciation


Total Long-term Assets

BDT5000,0000

BDT5000,0000

BDT5000,0000

BDT5000,0000

BDT5000,0000

Total Assets BDT1,045,740

BDT954,763

BDT982,017

BDT982,346

BDT984,581

Liabilities andCapital


CurrentLiabilities

AccountsPayable

BDT 6,984 BDT 44,043 BDT55,960

BDT57,150

BDT59,399

CurrentBorrowing

BDT346,0000

BDT246,0000

BDT146,0000

BDT121,0000

BDT86,0000

Other CurrentLiabilities



34/46

SubtotalCurrentLiabilities

BDT352,984

BDT290,043

BDT201,960

BDT178,150

BDT145,399

Long-termLiabilities

BDT4000,0000

BDT375,0000

BDT350,0000

BDT3000,0000

BDT250,0000

TotalLiabilities

BDT752,984

BDT665,043

BDT551,960

BDT478,150

BDT395,399

Paid-in Capital BDT1,0000,0000

BDT1,0000,0000

BDT1,097,0000

BDT1,097,0000

BDT1,097,0000

RetainedEarnings

(BDT684,6000)

(BDT732,244)

(BDT730,280)

(BDT676,943)

(BDT602,804)

Earnings (BDT22,644)

BDT 21,964 BDT63,337

BDT84,139

BDT94,987

Total Capital BDT292,756

BDT289,720

BDT430,057

BDT504,196

BDT589,182

TotalLiabilities andCapital

BDT1,045,740

BDT954,763

BDT982,017

BDT982,346

BDT984,581

Net Worth BDT292,756

BDT289,720

BDT430,057

BDT504,196

BDT589,182


35/46

8.7 Business RatiosThe business ratios given below are contrasted to industry standards for SIC code 0161which covers vegetable and melon growers. Within this category, research has shownthat there can be significant deviations from industry standards due to farm size, product

life cycle, and capital resources.

Farmers Group is a start-up venture, and therefore has a more heavy debt to equity ratiothan most existing farms. Furthermore, due to its move into a niche market, the companyis expected to spend more on advertising than its competitors. The first two years ofoperations are expected also to have a higher growth rate than average as it gains marketshare.

Ratio Analysis

Year 1 Year 2 Year 3 Year 4 Year 5 IndustryProfile

SalesGrowth

0.000% 21.74% 21.43% 4.60% 4.30% -4.60%

Percent of

Total Assets

AccountsReceivable

0.000% 0.000% 0.000% 0.000% 0.000% 12.90%

Inventory 5.33% 2.58% 3.03% 3.17% 3.30% 14.40%

OtherCurrentAssets

23.91% 26.18% 25.46% 25.45% 27.42% 28.90%

TotalCurrentAssets

52.19% 47.63% 49.08% 49.10% 49.22% 56.20%


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Long-termAssets

47.81% 52.37% 50.92% 50.90% 50.78% 43.80%

Total Assets 1000.000%

1000.000%

1000.000%

1000.000%

1000.000%

1000.000%

CurrentLiabilities

33.75% 30.38% 20.57% 18.14% 14.77% 31.10%


38.25% 39.28% 35.64% 30.54% 25.39% 20.50%

TotalLiabilities

72.000% 69.66% 56.21% 48.67% 40.16% 51.60%

Net Worth 28.000% 30.34% 43.79% 51.33% 59.84% 48.40%

Percent ofSales

Sales 1000.000%

1000.000%

1000.000%

1000.000%

1000.000%

1000.000%

GrossMargin

30.26% 30.27% 30.72% 31.28% 31.22% 32.000%

Selling,General &Administrati

ve Expenses

37.26% 29.04% 24.76% 23.31% 22.31% 20.70%

AdvertisingExpenses

0.83% 0.71% 1.23% 1.20% 1.23% 0.20%


37/46

Profit BeforeInterest andTaxes

5.57% 10.76% 14.01% 15.44% 15.80% 1.70%

Main Ratios

Current 1.55 1.57 2.39 2.71 3.33 1.65

Quick 1.39 1.48 2.24 2.53 3.11 0.88

Total Debtto Total

Assets

72.000% 69.66% 56.21% 48.67% 40.16% 51.60%

Pre-taxReturn onNet Worth

-7.73% 9.48% 18.60% 20.86% 20.36% 2.20%

Pre-taxReturn onAssets

-2.17% 2.88% 8.15% 10.71% 12.19% 4.50%

AdditionalRatios


Net ProfitMargin

-3.94% 3.14% 7.45% 9.46% 10.24% n.a

Return on

Equity

-7.73% 7.58% 14.73% 16.69% 16.12% n.a

ActivityRatios


38/46

AccountsReceivableTurnover

0.000 0.000 0.000 0.000 0.000 n.a

CollectionDays

60 0 0 0 0 n.a

InventoryTurnover

3.93 11.90 21.30 19.74 19.74 n.a

AccountsPayableTurnover

55.25 12.17 12.17 12.17 12.17 n.a

PaymentDays

29 17 27 30 29 n.a

Total AssetTurnover

0.55 0.73 0.87 0.91 0.94 n.a

Debt Ratios

Debt to NetWorth

2.57 2.30 1.28 0.95 0.67 n.a

CurrentLiab. toLiab.

0.47 0.44 0.37 0.37 0.37 n.a

LiquidityRatios

Net WorkingCapital

BDT192,756

BDT164,720

BDT280,057

BDT304,196

BDT339,182

n.a


39/46

InterestCoverage

0.59 1.57 3.05 4.28 5.53 n.a

AdditionalRatios

Assets toSales

1.82 1.36 1.16 1.10 1.06 n.a

CurrentDebt/TotalAssets

34% 30% 21% 18% 15% n.a

Acid Test 1.39 1.48 2.24 2.53 3.11 n.a

Sales/NetWorth

1.96 2.42 1.98 1.76 1.57 n.a

DividendPayout

0.000 1.14 0.32 0.12 0.11 n.a


40/46

Appendix

Sales Forecast

Month1

Month2

Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month10

Month11

Month12

Sales

Sales 0% BDT 0 BDT 0 BDT10,0000

BDT25,0000

BDT40,0000

BDT55,0000

BDT1000,0000

BDT175,0000

BDT120,0000

BDT50,0000

BDT 0 BDT 0

Other 0% BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0

Total Sales BDT 0 BDT 0 BDT10,0000

BDT25,0000

BDT40,0000

BDT55,0000

BDT1000,0000

BDT175,0000

BDT120,0000

BDT50,0000

BDT 0 BDT 0

Direct Cost ofSales

Month1

Month2

Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month10

Month11

Month12

Sales BDT 0 BDT 0 BDT6,8000

BDT17,0000

BDT27,2000

BDT37,4000

BDT68,0000

BDT119,0000

BDT81,6000

BDT34,0000

BDT 0 BDT 0

Other BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0

SubtotalDirect Cost ofSales


BDT17,0000

BDT27,2000

BDT37,4000

BDT68,0000

BDT119,0000

BDT81,6000

BDT34,0000

BDT 0 BDT 0

General Assumptions

Month1

Month2

Month3

Month4

Month5

Month6

Month7

Month8

Month9

Month10

Month11

Month12

PlanMonth

1 2 3 4 5 6 7 8 9 10 11 12

CurrentIntere

7.000%

7.000%

7.000%

7.000%

7.000%

7.000%

7.000%

7.000%

7.000%

7.000%

7.000%

7.000%


41/46

stRate

Long-termIntere

stRate

7.000%

7.000%

7.000%

7.000%

7.000%

7.000%

7.000%

7.000%

7.000%

7.000%

7.000%

7.000%

TaxRate

30.000%

20.000%

20.000%

20.000%

20.000%

20.000%

20.000%

20.000%

20.000%

20.000%

20.000%

20.000%

Other 0 0 0 0 0 0 0 0 0 0 0 0

Pro Forma Cash Flow

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month10

Month11

Month12

Cash Received

Cash from Operations

Cash Sales BDT 0 BDT 0 BDT2,5000

BDT6,250

BDT10,0000

BDT13,750

BDT25,0000

BDT43,750

BDT30,0000

BDT12,5000

BDT 0 BDT 0

Cash from Receivables BDT 0 BDT 0 BDT 0 BDT 250 BDT7,875

BDT19,125

BDT30,375

BDT42,375

BDT76,875

BDT129,875

BDT88,250

BDT36,250

Subtotal Cash fromOperations


BDT6,5000

BDT17,875

BDT32,875

BDT55,375

BDT86,125

BDT106,875

BDT142,375

BDT88,250

BDT36,250

Additional CashReceived

Sales Tax, VAT,HST/GST Received

0.000% BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0

New Current Borrowing BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0

New Other Liabilities(interest-free)

BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0

New Long-termLiabilities


Sales of Other CurrentAssets



42/46

Sales of Long-termAssets


New InvestmentReceived


Subtotal Cash Received BDT 0 BDT 0 BDT2,5000

BDT6,5000

BDT17,875

BDT32,875

BDT55,375

BDT86,125

BDT106,875

BDT142,375

BDT88,250

BDT36,250

Expenditures Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month10

Month11

Month12

Expenditures fromOperations

Cash Spending BDT11,5000

BDT11,5000

BDT11,0000

BDT7,5000

BDT7,0000

BDT9,5000

BDT9,0000

BDT9,5000

BDT10,0000

BDT10,5000

BDT10,0000

BDT10,5000

Bill Payments BDT

30,250

BDT

7,507

BDT

7,509

BDT

7,573

BDT

7,571

BDT

7,508

BDT

10,129

BDT

91,730

BDT

178,012

BDT

46,511

BDT

7,394

BDT

7,225

Subtotal Spent onOperations

BDT41,750

BDT19,0007

BDT18,509

BDT15,073

BDT14,571

BDT17,0008

BDT19,129

BDT101,230

BDT188,012

BDT57,011

BDT17,394

BDT17,725

Additional Cash Spent

Sales Tax, VAT,HST/GST Paid Out


Principal Repayment ofCurrent B orrowing

BDT 0 BDT 0 BDT 0 BDT 0 BDT5,0000

BDT15,0000

BDT4,0000

BDT 0 BDT 0 BDT 0 BDT30,0000

BDT 0

Other LiabilitiesPrincipal Repayment


Long-term LiabilitiesPrincipal Repayment


Purchase Other CurrentAssets


Purchase Long-termAssets


Dividends BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0

Subtotal Cash Spent BDT41,750

BDT19,0007

BDT18,509

BDT15,073

BDT19,571

BDT32,0008

BDT23,129

BDT101,230

BDT188,012

BDT57,011

BDT47,394

BDT17,725

Net Cash Flow (BDT41,750)

(BDT19,0007)

(BDT16,0009)

(BDT8,573)

(BDT1,696)

BDT 867 BDT32,246

(BDT15,105)

(BDT81,137)

BDT85,364

BDT40,856

BDT18,525


43/46

Cash Balance BDT203,650

BDT184,643

BDT168,634

BDT160,061

BDT158,365

BDT159,232

BDT191,478

BDT176,373

BDT95,236

BDT180,599

BDT221,455

BDT239,980

Pro Forma Balance Sheet

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Assets StartingBalances

CurrentAssets

Cash BDT245,4000

BDT203,650

BDT184,643

BDT168,634

BDT160,061

BDT158,365

BDT159,232

BDT191,478

BDT176,373

BDT95,236

BDT180,599

BDT221,455

BDT239,980

AccountsReceivable

BDT 0 BDT 0 BDT 0 BDT7,5000

BDT26,0000

BDT48,125

BDT70,250

BDT114,875

BDT203,750

BDT216,875

BDT124,5000

BDT36,250

BDT 0

Inventory BDT150,0000

BDT150,0000

BDT150,0000

BDT143,2000

BDT126,2000

BDT99,0000

BDT61,6000

BDT74,8000

BDT130,9000

BDT89,760

BDT55,760

BDT55,760

BDT55,760

OtherCurrentAssets

BDT250,0000

BDT250,0000

BDT250,0000

BDT250,0000

BDT250,0000

BDT250,0000

BDT250,0000

BDT250,0000

BDT250,0000

BDT250,0000

BDT250,0000

BDT250,0000

BDT250,0000

TotalCurrentAssets

BDT645,4000

BDT603,650

BDT584,643

BDT569,334

BDT562,261

BDT555,490

BDT541,082

BDT631,153

BDT761,023

BDT651,871

BDT610,859

BDT563,465

BDT545,740

Long-termAssets

Long-termAssets

BDT5000,0000

BDT5000,0000

BDT5000,0000

BDT5000,0000

BDT5000,0000

BDT5000,0000

BDT5000,0000

BDT5000,0000

BDT5000,0000

BDT5000,0000

BDT5000,0000

BDT5000,0000

BDT5000,0000

AccumulatedDepreciation

BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0

TotalLong-termAssets

BDT5000,0000

BDT5000,0000

BDT5000,0000

BDT5000,0000

BDT5000,0000

BDT5000,0000

BDT5000,0000

BDT5000,0000

BDT5000,0000

BDT5000,0000

BDT5000,0000

BDT5000,0000

BDT5000,0000

TotalAssets

BDT1,145,4000

BDT1,103,650

BDT1,084,643

BDT1,069,334

BDT1,062,261

BDT1,055,490

BDT1,041,082

BDT1,131,153

BDT1,261,023

BDT1,151,871

BDT1,110,859

BDT1,063,465

BDT1,045,740

LiabilitiesandCapital

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12


44/46

CurrentLiabilities

AccountsPayable

BDT30,0000

BDT7,256

BDT7,256

BDT7,321

BDT7,321

BDT7,260

BDT7,176

BDT85,647

BDT176,417

BDT46,265

BDT7,153

BDT6,984

BDT6,984

CurrentBorrowing

BDT4000,0000

BDT4000,0000

BDT4000,0000

BDT4000,0000

BDT4000,0000

BDT395,0000

BDT380,0000

BDT376,0000

BDT376,0000

BDT376,0000

BDT376,0000

BDT346,0000

BDT346,0000

OtherCurrentLiabilities

BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0

SubtotalCurrentLiabilities

BDT430,0000

BDT407,256

BDT407,256

BDT407,321

BDT407,321

BDT402,260

BDT387,176

BDT461,647

BDT552,417

BDT422,265

BDT383,153

BDT352,984

BDT352,984


BDT4000,0000

BDT4000,0000

BDT4000,0000

BDT4000,0000

BDT4000,0000

BDT4000,0000

BDT4000,0000

BDT4000,0000

BDT4000,0000

BDT4000,0000

BDT4000,0000

BDT4000,0000

BDT4000,0000

TotalLiabilities

BDT830,0000

BDT807,256

BDT807,256

BDT807,321

BDT807,321

BDT802,260

BDT787,176

BDT861,647

BDT952,417

BDT822,265

BDT783,153

BDT752,984

BDT752,984

Paid-inCapital

BDT1,0000,0000

BDT1,0000,0000

BDT1,0000,0000

BDT1,0000,0000

BDT1,0000,0000

BDT1,0000,0000

BDT1,0000,0000

BDT1,0000,0000

BDT1,0000,0000

BDT1,0000,0000

BDT1,0000,0000

BDT1,0000,0000

BDT1,0000,0000

RetainedEarnings

(BDT684,6000)

(BDT684,6000)

(BDT684,6000)

(BDT684,6000)

(BDT684,6000)

(BDT684,6000)

(BDT684,6000)

(BDT684,6000)

(BDT684,6000)

(BDT684,6000)

(BDT684,6000)

(BDT684,6000)

(BDT684,6000)

Earnings BDT 0 (BDT19,0007)

(BDT38,013)

(BDT53,387)

(BDT60,460)

(BDT62,171)

(BDT61,494)

(BDT45,894)

(BDT6,794)

BDT14,206

BDT12,306

(BDT4,919)

(BDT22,644)

TotalCapital

BDT315,4000

BDT296,393

BDT277,387

BDT262,013

BDT254,940

BDT253,229

BDT253,906

BDT269,506

BDT308,606

BDT329,606

BDT327,706

BDT310,481

BDT292,756

TotalLiabilitiesandCapital

BDT1,145,4000

BDT1,103,650

BDT1,084,643

BDT1,069,334

BDT1,062,261

BDT1,055,490

BDT1,041,082

BDT1,131,153

BDT1,261,023

BDT1,151,871

BDT1,110,859

BDT1,063,465

BDT1,045,740

Net Worth BDT315,4000

BDT296,393

BDT277,387

BDT262,013

BDT254,940

BDT253,229

BDT253,906

BDT269,506

BDT308,606

BDT329,606

BDT327,706

BDT310,481

BDT292,756

Pro Forma Profit and Loss

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month10

Month 11 Month12

Sales BDT 0 BDT 0 BDT10,0000

BDT25,0000

BDT40,0000

BDT55,0000

BDT1000,0000

BDT175,0000

BDT120,0000

BDT50,0000

BDT 0 BDT 0


45/46

Direct Cost ofSales


BDT17,0000

BDT27,2000

BDT37,4000

BDT68,0000

BDT119,0000

BDT81,6000

BDT34,0000

BDT 0 BDT 0

Other BDT8000

BDT8000

BDT 867 BDT 867 BDT 833 BDT 833 BDT 833 BDT 833 BDT 833 BDT 833 BDT 833 BDT833

Total Cost of Sales BDT8000

BDT8000

BDT7,667

BDT17,867

BDT28,033

BDT38,233

BDT68,833

BDT119,833

BDT82,433

BDT34,833

BDT 833 BDT833

Gross Margin (BDT8000)

(BDT8000)

BDT2,333

BDT7,133

BDT11,967

BDT16,767

BDT31,167

BDT55,167

BDT37,567

BDT15,167

(BDT833)

(BDT833)

Gross Margin % 0.000% 0.000% 23.33% 28.53% 29.92% 30.48% 31.17% 31.52% 31.31% 30.33% 0.000% 0.000%

Expenses

Payroll BDT11,5000

BDT11,5000

BDT11,0000

BDT7,5000

BDT7,0000

BDT9,5000

BDT9,0000

BDT9,5000

BDT10,0000

BDT10,5000

BDT10,0000

BDT10,5000

Sales andMarketing andOther Expenses

BDT 950 BDT 950 BDT 950 BDT 950 BDT 950 BDT 950 BDT 950 BDT 950 BDT 950 BDT 950 BDT 950 BDT950

Depreciation BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0

Gas and Oil BDT 170 BDT 170 BDT 170 BDT 170 BDT 170 BDT 170 BDT 170 BDT 170 BDT 170 BDT 170 BDT 170 BDT170

Utilities BDT5000

BDT5000

BDT5000

BDT5000

BDT5000

BDT5000

BDT 5000 BDT5000

BDT5000

BDT5000

BDT5000

BDT5000

Insurance BDT 420 BDT 420 BDT 420 BDT 420 BDT 420 BDT 420 BDT 420 BDT 420 BDT 420 BDT 420 BDT 420 BDT420

Payroll Taxes 15% BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0

Other BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0

Total OperatingExpenses

BDT13,540

BDT13,540

BDT13,040

BDT9,540

BDT9,040

BDT11,540

BDT11,040

BDT11,540

BDT12,040

BDT12,540

BDT12,040

BDT12,540

Profit BeforeInterest and Taxes

(BDT14,340)

(BDT14,340)

(BDT10,707)

(BDT2,407)

BDT2,927

BDT5,227

BDT20,127

BDT43,627

BDT25,527

BDT2,627

(BDT12,873)

(BDT13,373)

EBITDA (BDT14,340)

(BDT14,340)

(BDT10,707)

(BDT2,407)

BDT2,927

BDT5,227

BDT20,127

BDT43,627

BDT25,527

BDT2,627

(BDT12,873)

(BDT13,373)

Interest Expense BDT4,667

BDT4,667

BDT4,667

BDT4,667

BDT4,638

BDT4,550

BDT 4,527 BDT4,527

BDT4,527

BDT4,527

BDT4,352

BDT4,352


46/46

Taxes Incurred BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0

Net Profit (BDT19,0007)

(BDT19,0007)

(BDT15,373)

(BDT7,073)

(BDT1,711)

BDT 677 BDT15,6000

BDT39,1000

BDT21,0000

(BDT1,9000)

(BDT17,225)

(BDT17,725)

Net Profit/Sales 0.000% 0.000% -

153.73%

-28.29% -4.28% 1.23% 15.60% 22.34% 17.50% -3.80% 0.000% 0.000%

Personnel Plan

Month 1 Month 2 Month 3 Month4

Month5

Month6

Month7

Month8

Month 9 Month10

Month11

Month12

BusinessManager

0% BDT1,5000

BDT1,5000

BDT1,5000

BDT1,5000

BDT1,5000

BDT2,5000

BDT2,5000

BDT2,5000

BDT2,5000

BDT2,5000

BDT2,5000

BDT2,5000

ExecutiveDirector

0% BDT1,5000

BDT1,5000

BDT1,5000

BDT1,5000

BDT1,5000

BDT2,5000

BDT2,5000

BDT2,5000

BDT2,5000

BDT2,5000

BDT2,5000

BDT2,5000

ManagerTrainee

0% BDT 0 BDT 0 BDT 0 BDT1,0000

BDT1,0000

BDT1,0000

BDT1,0000

BDT1,0000

BDT1,0000

BDT1,0000

BDT1,0000

BDT1,0000

ManagerTrainee

0% BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT1,0000

BDT1,0000

BDT1,0000

BDT1,0000

Logisticengineer

0% BDT1,5000

BDT1,5000

BDT1,5000

BDT1,5000

BDT1,5000

BDT1,5000

BDT1,5000

BDT1,5000

BDT1,5000

BDT1,5000

BDT1,5000

BDT1,5000

Heavyequipment

0% BDT1,5000

BDT1,5000

BDT1,5000

BDT1,5000

BDT1,5000

BDT1,5000

BDT1,5000

BDT1,5000

BDT1,5000

BDT1,5000

BDT1,5000

BDT1,5000

Welder 0% BDT5000

BDT5000

BDT 0 BDT5000

BDT 0 BDT5000

BDT 0 BDT5000

BDT 0 BDT5000

BDT 0 BDT5000

Contractworkers

0% BDT5,0000

BDT5,0000

BDT5,0000

BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0

Total People 12 12 12 7 7 7 7 7 7 7 7 7

Total Payroll BDT11,5000

BDT11,5000

BDT11,0000

BDT7,5000

BDT7,0000

BDT9,5000

BDT9,0000

BDT9,5000

BDT10,0000

BDT10,5000

BDT10,0000

BDT10,5000

Agro Farming - A NEW HORIZON

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