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
Year 1 Year 2 Year 3 Year 4 Year 5
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
Other BDT 0 BDT 0 BDT 0 BDT 0 BDT 0
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
Year 1 Year 2 Year 3 Year 4 Year 5
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
Investor 2 BDT 250,0000
Investor 3 BDT 250,0000
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Investor 4 BDT 250,0000
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
Year 1 Year 2 Year 3 Year 4 Year 5
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
Year 1 Year 2 Year 3 Year 4 Year 5
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
Other 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
Year 1 Year 2 Year 3 Year 4 Year 5
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)
BDT 0 BDT 0 BDT 0 BDT 0 BDT 0
New Long-termLiabilities
BDT 0 BDT 0 BDT 0 BDT 0 BDT 0
Sales of Other CurrentAssets
BDT 0 BDT 0 BDT 0 BDT 0 BDT 0
Sales of Long-termAssets
BDT 0 BDT 0 BDT 0 BDT 0 BDT 0
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
BDT 0 BDT 0 BDT 0 BDT 0 BDT 0
Principal Repayment ofCurrent Borrowing
BDT54,0000
BDT1000,0000
BDT1000,0000
BDT25,0000
BDT35,0000
Other Liabilities PrincipalRepayment
BDT 0 BDT 0 BDT 0 BDT 0 BDT 0
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
BDT 0 BDT 0 BDT 0 BDT 0 BDT 0
Dividends BDT 0 BDT25,0000
BDT20,0000
BDT10,0000
BDT10,0000
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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
Year 1 Year 2 Year 3 Year 4 Year 5
Assets
Current Assets
Cash BDT239,980
BDT180,177
BDT202,250
BDT201,210
BDT182,106
AccountsReceivable
BDT 0 BDT 0 BDT 0 BDT 0 BDT 0
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
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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
BDT 0 BDT 0 BDT 0 BDT 0 BDT 0
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
Year 1 Year 2 Year 3 Year 4 Year 5
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
BDT 0 BDT 0 BDT 0 BDT 0 BDT 0
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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
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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%
Long-termLiabilities
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%
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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
Year 1 Year 2 Year 3 Year 4 Year 5
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
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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
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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
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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
BDT 0 BDT 0 BDT6,8000
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%
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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
BDT 0 BDT 0 BDT2,5000
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
BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0
Sales of Other CurrentAssets
BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0
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Sales of Long-termAssets
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 InvestmentReceived
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 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
BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0
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
BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0
Long-term LiabilitiesPrincipal Repayment
BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0
Purchase Other CurrentAssets
BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0
Purchase Long-termAssets
BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0 BDT 0
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
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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
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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
Long-termLiabilities
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
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Direct Cost ofSales
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 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
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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
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