business plan -body

8/4/2019 Business Plan -Body

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EXPLORER

M/s. Alpona Label

Plot-36, Road- M. Bir Uttam Road

Ashulia, Savar, Dhaka.

Phone No: 02-9895777

Sl. No Name Title Address Contract

1Md. Bhuiyan Al Mahiuddin General

Manager

(GM)

247, ConcordTower, Katabon

Road, Katabon,Dhaka.

01671139861

2 Md. Saiful Islam Masud Assist.

General

Manager(AGM)

10/4, 3rd Floor,

Shantibag, Malibag,

Dhaka.

01815483804

3 Md.Shaiful Hassan Marketing

Manager

House: 128, Road: 7,

Dhanmondi, Dhaka.

01737195614

4 Md. Habibur Rahman Marketing

Manager

House: 37, Road: 5,

Banani, Dhaka.

01918780728

5 Mahmuda Akter Accountant House: 15, Babor

Ali Road,

Mohammadpur,

Dhaka.

01736323933

6 Sabiha Afsari Finance

Manager

123/6, Uttora,

Dhaka.

01915998068

7 Nazmun Nahar Production

Manager

House: 45, Road: 6,

Kazipara, Mirpur,

Dhaka.

01920646176

8 Md. Sahadat Shikdar DeliveryManager

79/13, Shantinagar,Dhaka,

01723220768

9 Md. Rafiqul Islam Delivery

Manager

House: 258, Road:2,

Shaorapara, Mirpur,

Dhaka.

01710178597

Prepared Date:

07 October, 2010.

Prepared By:

Partners of the business.

Number of Copy: 20


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Executive Summary

Alpona - a brand of M/s.Alpona Label - is going to capture label market both in home and

abroad by satisfying target customers, providing the best quality product in just time. In

garments industry label is a complementary product used in garments products having huge

demand with oligopolistic competition. For this we are going to form a business on

partnership basis to be a branded business partner by helping garments industry. Our

projected location is Ashulia, Savar, Dhaka.

At first our employed sales representatives will get order directly or presenting sample

designs of label from customers (RMG industry, apparel industry). Then the representatives

send order to the production department. The production department approves label from

customer through representatives, in this stage the representatives will finalize all terms and

conditions. After producing the labels, the delivery department will delivery the labels to the

customers. The uniqueness or USP (Unique Selling Proposition) of our business is delivery

product just-in-time.

To conduct our business we need 50 lakh taka in which, we (all the partners) will contribute

40% of total investment and rest of the investment (60%) from bank loan. The debt-equity

ratio is 60:40. Initially, the loan amount will be used to purchase machinery, furniture,

computer, office security, raw materials and to bear establish expenses.The 1

stthree-year projected sales is about TK 7 crore 80 lakh, 10 crore 50 lakh, and 12 crore

15 lakh respectively when net income will be TK 1 crore 1 lakh, 1 crore 91 lakh, and 2 crore

3 lakh. The break even sales is 3 crore 25 lakh taka when label volume will be 2.5 crore for

1st year. Every year we will repay 8,73,853 TK including interest for bank loan.

To achieve these financial goals, we will emphasize on marketing. Our marketing strategy

includes database marketing, promotional sales strategy, providing sales incentives to

employees as well as sales representatives. Occasionally we also give some incentives to our

customers. To increase sales we will emphasis on networking, customer relationship

management, attractive pricing, advertising campaigns and customer service. We will

implement our marketing strategy in-house responsibility.

To manage above all activities properly, we have a good management team having a GM

who is an expert in label business. We have 1 Assistant GM and 7 managers for production,

marketing, accounting & finance, and delivery department. These 8 managers are our

business partner. We have total 31 employees including GM, sales representative, graphic

designer, production supervisor, deliveryman and workers for 3-shift work hour.


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Table of Contents

Chapter Topics Page No.

Title Page 1Executive Summary 2

1.0 The Organizational Plan 4-14

1.1 Description Of The Business 4

1.2 Product 7

1.3 Intellectual Property 7

1.4 Location 7

1.5 Legal Structure 7

1.6 Management 8

1.7 Personnel 121.8 Accounting & Legal 13

1.9 Insurance 14

1.10 Security 14

2.0 The Marketing Plan 15-18

2.1 Overview And Goals Of Marketing Plan 15

2.2 Market Analysis 15

2.3 Marketing Strategy 17

2.4 Customer Service 18

2.5 Implementation Of Marketing Plan 18

3.0 The Financial Plan 19-23

3.1 Summary Of Financial Need 19

3.2 Loan Fund Dispersal Statement 19

3.3 Pro Forma Cash Flow Statement 20

3.4 Three Year Income Projection 21

3.5 Projected Balance Sheet 22

3.6 Break-Even Analysis 23

4.0 Supporting Documents

A Personal Resume A1-A9

B Owners Financial Statement B1-B8

C Rental Agreement C1

D Partnership Agreement D1-D3

E Trade License, Trade Mark Registration I,II


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1.1Description of the Business:In garments industry labeling is an important part to make the final product. There are ample

opportunities to enter in to the textile label market. Many companies exist to provide these

products to this industry, but most of them are often fail to provide quality product or just-in-

time supply.

As entrepreneur, we have found these opportunities to enter in to this market and to become

successful. In this sector there is oligopolistic competition. There is both local and

international demand for label. As a result, we have also the opportunities to expand our

business both domestic and international market.

By observing these opportunities, we are going to start a business which is committed to

provide the product better than the competitions do.

Mission:

Our businesss mission is divided into two parts as Short term and Long term:

Short term Mission:

1. To penetrate local market2. To increase market share3. To help garments industry

Long term Mission:

1. To be a leader in local label market2. To expand our business globally3. To manufacture all types of labels.4. To be a branded business partner.

1. The Organizational Plan


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Business Model:

At first our employed sales representatives will get order directly or presenting sample

designs of label from customers (RMG industry, apparel industry). Then the representatives

send order to the production department; the production department takes final design of

label from our designer. The production department approves label from customer through

representatives, in this stage the representatives will finalize all terms and conditions

including pricing, volume, date of delivery and other necessary information and inform these

to the production department. Now production department purchase inventory on the basis of

customers order from suppliers. In this stage, the processing unit produce/manufactures label.Here the cutting unit will cut the labels. After packing the labels, the delivery department will

delivery the labels to the customers through delivery man or by the customers own self

predefined while contact finalized.

The uniqueness or USP (Unique Selling Proposition) of our business is delivery product

just-in-time. Our management is different from the competitors management because a

little number of businesses has organized management. On the other hand, we have

emphasized on sales strategy. Our representatives will communicate with customers regularly

to build a strategic relationship, one time this strategic relationship will be profitable

relationship and we will be successful.


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Strategy:

To establish and to penetrate market, our pricing will be attractive than competitorsprice.

To control quality of our product, we will emphasis on quality proved raw materials. To expand our business, we will setup new production unit every year. To increase sales volume, we will offer incentives to customers and employees.

Strategic Relationships:

To maintain strategic relationship with our business partners including suppliers, transporters

we will communicate with them regularly and occasionally we will gift diary, calendars and

so on.

SWOT Analysis

Now a days demand of readymade garments is increasing both in national and international

market. Every garments product need to be labeled to focus or highlight their uniqueness.

Because of lacking of the quality labeling, the garments products fail to differentiate their

uniqueness in both national and international markets. We are providing better quality

labeling facility for the garments products.

Strength

Best quality label Just-in-time supply Reasonable price

Weakness

Lack of experience Lack of finance

Opportunity

Expandable garment &apparel market

Up coming ICC worldcup

Threat

Collecting quality rawmaterials

Instability of garmentsindustry.


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1.2 Product

Product Category: Textile Label

M/s. Alpona Label is a garments label manufacturing firm. At first we will design some

label by our graphic designer. Then we will go to garments manufacturers and show themthese labels. Then we will take orders according to the choice of garments product

manufactures. We will deliver the labels within contract time. Because our main focus will be

onbest quality, and in just time delivery.

In manufacturing process, we will collect raw materials from importers of our country who

imports raw materials mainly from china. Cotton yarn, synthetic yarn, different types of

paper, different types of color and chemical are the raw materials of our product. After

collecting raw materials, we will produce the quality labels in our processing unit. We always

preserve minimum amount (safety stock) of raw materials for Just-in-time delivery.

1.3 Intellectual Property

M/s. Alpona labels trade mark is

approved by trade mark registrar.

1.4 Location

Projected location of our firm is at Savar.

Plot-36, Road- M. Bir Uttam Road, Ashulia, Savar, Dhaka.

Projected cost associated with the location is-

Security of factory and office rent-1,20,000 TK. Monthly rent- 40,000 TK. Monthly utility cost- 12,000 TK.

Note: Rental Agreement is included in Supporting Documents Part.

1.5 Legal Structure

Our business firms is formed based on partnership agreement. Partnership agreement will

help us to solve any internal problems. This legal agreement will help us to run our business

smoothly.


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1.6 Management

The organogram of our business is shown as below:


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Responsibilities and the Abilities of the management members

General Manager: Md. Bhuiyan Al Mahiuddin

Responsibilities:1. Manage firms entire department efficiently.2. Challenged to make efficient use of resources.3. Challenged with getting things done through people.4. Use of all the tools of management that any other manager uses.5. Developing the business' mission and objectives and determining how they will be

accomplished.

6. Establishing the internal organizational structure of the organization.7. filling and keeping filled with qualified people all positions in the business8. Influencing people's behavior through motivation, communication, group dynamics,

leadership and discipline.

Projected Salary: 30,000 taka

Assistant General Manager: Md. Saiful Islam Masud

Responsibilities :

1. Establishing performance standards based on the firm's objectives, measuring andreporting actual performance, comparing the two, and taking corrective or preventive

action as necessary.

2. Helping the general manager in the ongoing process of developing the business'mission and objectives and determining how they will be accomplished.

3. Distribute responsibility and authority to job holders in this function of management.4. Taking the all responsibility in absence of GM.5. Concerned with scope of the business and what distinguishes this business from

similar businesses.

6. Influencing the behavior of people in the organization depends on the goals to beachieved.



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Marketing Manager (Promotion): Md. Shaiful Hassan

Responsibilities:

1. Development of marketing goals and strategy. 2. Conducting marketing researches and monitoring customer needs. 3. Promotion and advertisement.4. Establishing rules and business concept of how the organization will conduct itself on

the market, what marketing instruments will be used, what goals will be set and what

strategies should be applied to attaining effective advertising campaigns.

5. Developing a market-based business strategy that provides unique value to thecustomers on all services and products of the organization.


Marketing Manager (Sales): Md. Habibur Rahman

Responsibilities:

1. Implementing the marketing goals and strategy.2. Focus on the Customer demands.3. Monitor the Competition to increase sales.4. Create new market.5. Communicate Internally.6. Conducting the advertising campaign based on that research.


Accounting Manager: Mahmuda Akter

Responsibilities:

1. Receipt of money, paying bills, payroll, recording.2. Tracking assets and inventory, and financial reporting.3. Forecasting, budgeting and internal control. Responsible for supervising and

mentoring the accounting staff.

4. Ensure timely and accurate completion of account reconciliations and analyticalreports. Responsible for ensuring the accurate accounting and reporting of labor and

cost standards including variances, inventory and warranty. Managing the Accounts


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Payable and Receivable processes. Assist with quarterly and annual filings by

providing supporting schedules as needed.

5. Assist with the annual overhead budget process including preparation of seniormanagement presentation and variance analysis.

6. Review of department expenditures and the actual to budget comparison. Preparationand distribution of the monthly executive financials including commentary.

7. Assist with special projects including system implementations and initiating variousprocess improvements utilizing Six Sigma tools. Evaluation of Six Sigma baseline

calculations.

Projected salary: 10,000 taka.

Finance Manager: Sabiha Afsari

Responsibilities:

1. Provide strategic financial support for business and operational planning.2. Meet external and internal financial reporting requirements.3. Provide daily financial services functions.4. Proper preparation of the annual budget as well as compliance of regulatory codes is

both important responsibilities of a finance manager.

5. Administering employee expenses and salaries.6. Budget preparation Budget administration.7. Distribution of pass-through funds, Cash flow, Investments.

Projected salary: 10,000 taka.

Production Manager: Nazmun Nahar

Responsibilities:

1. Setting standards and targets for each section of the production process. The quantityand quality of products coming off a production line will be closely monitored. In

businesses focusing on lean production, quality will be monitored by all employees at

every stage of production, rather than at the end as is the case for businesses using a

quality control approach.
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2. Providing the materials, components and equipment required to keep the productionprocess running smoothly.

3. Responsible for stocking all the necessary tools, spares, raw materials and equipmentrequired to service the manufacturing process.

4. Responsible for researching new products or modifications to existing ones,estimating costs for producing in different quantities and by using different methods.

5. Concerned with the manufacture of products.


Product delivery Manager: Md. Sahadat Shikdar and Md. Rafiqul Islam

Responsibilities:

Communicating with the Management, Resources, Project Managers and most

importunately, the Client. The communication should be crisp, clear and unambiguous

without leaving any doubt in the minds of the listener.

1. Focused on solving the clients problems and providing the client with a long lastingsolution to run their business effectively and efficiently.

2. Delivering the product with right time and right place.3. Maintaining better relationship among the channel members.

Projected Salary: 10,000 taka (Per Person)

1.7 Personnel

Our total employee will be 31. Among them

General Manager- 1 Plant Engineer- 1 Graphics designer-1 Sales representative-5 Delivery man-1 Production Supervisor-3 Production worker- 18 Office assistance-1
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Qualification required for the Personnel:

Engineer: M. Sc in mechanical engineering from reputed govt. engineering university.

Designer: MFA from a reputed university.Sales representative: Bachelor degree from any discipline having good communications and

selling skill.

Delivery man: B. Com with hard working mentality.

Office assistant: HSC

Production supervisor: HSC and having good quality on controlling power.

Production workers: Having 2/3 years experience in related work.

Salaries:

Designation Number of

employee

Working Hours Salary per

Month

Total

Salary

Plant Engineer 1 Office hour but

responsible when

problem occur

15000 15000

Graphics designer 1 Office hour 10000 10000

Sales representative 5 Office hour 6000 30000

Delivery man 1 Office hour 5000 5000

Production Supervisor 3 Any of three shift

production hours

5000 15000

Production worker 18 Any of three shift

production hours

4000 72000

Office assistance 1 Office hour 4000 4000

If we will increase our production then some additional workers may be added.

1.8 Accounting & Legal

For daily accounting system we will follow standard accounting system. Our accounting and

financial managers will be responsible for periodic financial statement analysis.

There will be no attorney for our business but if need, we will employ on contract basis.


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1.9 Insurance

We will carry property insurance for our machinery. The insurance cost per year is 36,000 tk.

The insurance carrier is Dhaka Insurance Ltd.

1.10 Security

In terms of inventory control our employed supervisor will be responsible. For this purpose

there will be no cost.


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2.1Overview and Goals of Marketing StrategyTextile label is a complementary product. So, our market is basically business market.

Specially, our market/customers include Readymade Garments (RMG) industry, textile,

apparel, knitwear, as well as tailors who need textile labels. Oligopolistic competition is

underlined in our business or target market. We will get order from our customer to produce

textile label. After producing in time we will distribute to them or others predefined by two

parties. Our products pricing strategy will be cost plus. In this case price will be determined

by adding all the costs with certain percent of profit on cost. As a part of our promotional

activities we will give rebates to the customers and commission to the sales representatives.

We will implement our marketing strategy in-house responsibility. For these activities we

have separate department known as Marketing Department.

The marketing goals are:

1. To establish a customer base of 20 percent of the defined target market in the firstyear.

2. To generate 6 crores labels in sales for the first year.3. To increase sales by 25 percent annually for the first year.4. To expand at least two new production units by the end of the first three years.5. To provide the best quality product in just time.

2.2 Market Analysis

Market analysis includes target market, competition, market trends and market research.

Target Market:The target market of our business is made up of business customer specially who make

garments products like T shirt, sports items, knit wear, woven sweaters and other cloths.

We have segmented our product market based on both demographically and geographically.

So the target market includes RMG industry, tailors industry, sports items manufacturing

industry and other clothing industry in Bangladesh.

Competition:

Oligopolistic competition is underlined in our business or target market. The major

competitors of us are Maruf International, S.M Label and New Textile Label.

2. Marketing Plan


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Their strengths and weakness are assessed as below:

Competitor 1

Maruf International

Competitor 2

S. M. Label

Competitor 3

New Textile Label

Product andservice

strategies

Quality product within

time

Quality product in

lower cost

Quality product

Quality product

Pricing

strategies

Cost based Cost based Cost based

Distribution

strategies

Both own delivery man

and by customer

Both own delivery

man and by

customer

Both own delivery

man and by customer

Promotion

strategies

Commission to the

representative or sales

promotion

Commission to

sales promotions

and rebate to

customer

Rebate to the

customer

Strengths

weakness

Large market share Lower cost Production efficiency

Limited sales force Unable to deliver

timely

Limited sales force

Market Trends /Industry Analysis:

Textile label is a complementary product. So, our market is basically business market.

Specially, our market/customers include Readymade Garments (RMG) industry, textile,

apparel, knitwear, as well as tailors who need textile labels.

Though garments industry is the biggest industry in our country having about 5000 garments

which are exporting a lot of product every year. As they manufacture more products, they

need more label as our market will expand and vise-versa.

On the other hand instability in garments industry also disrupts or has a great affect on our

label market. As a profitable business, now label industry is expanding day by day.

Market Research:

We will collect primary data through observation, experimentation and networking methods.

Secondary data will be collected from government agency and BGMEA, and other related

associations.


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2.3 Marketing strategy:

To increase our sales through getting more orders from customers, we will emphasis on

customer oriented marketing strategy including pricing, proper distribution, database

marketing, sales incentives, advertising and networking. For these purpose we have allocated2% of total investment in first year.

Expected ROI=

=

=202.98%Methods of Sales and Distribution:

We will get order from our customer to produce textile label. After producing in time we will

distribute to them or others predefined by two parties.

Packaging:

For our product packaging is not so important. Then we will try to pack our product, so that

customers can carry their product easily.

Pricing:

Our products pricing strategy will be cost plus. In this case price will be determined by

adding all the costs with certain percent of profit on cost. Cost includes production cost, cost

of goods sold and operating expenses.

The Formula is

Price (Per Label): Cost per Label + 12% profit on cost

= (1.14 + 0.16) TK

= 1.30 TK per Label

We will try to keep our products price lower than others products.

Branding:

For better banding in the market we will emphasize on quality control, better service with

minimum cost in just time.

Database Marketing:

At the beginning we will enlist or make database of the customers of our targeted market.

Then our representatives will communicate with them to get order.


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Sales Strategy:

We will follow direct sales. Following database marketing we will keep good connection

with our customers. For this purpose we will recruit some representatives to communicate

with our customers and get orders. We will design the tag and taking improvement from

customers. Then we will produce and supply to the customer within just time.

Sales Incentives/Promotions:

As a part of our promotional activities we will give rebates to the customers and commission

to the sales representatives.

Advertising strategies:

For advertising we will follow traditional strategies like advertisement on trade magazine. In

addition we will take long term sponsorship of sports teams in different competitions.

Public Relation:

We will participate in different trade fair, trade show .So that customers know us.

Networking:

Networking is very important for a business to be successful within a short time. Within a

few months of starting in our industry we will try to get membership in our industry related

association. Within a few years we will try to achieve a leadership position.

2.4 Customer service:

We will be very serious in customer service. Our sales representative will communicate with

customers on a regular basis and they also will note down customers suggestion if any.

2.5 Implementation of Marketing Strategy:

We will implement our marketing strategy in-house responsibility. For these activities we

have separate department known as Marketing Department that is responsible for all

marketing activities and our two partners will act as marketing manager. For this some

persons will be employed under a marketing manager. The Marketing manager will make all

the marketing related decisions.


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3.1 Summary of Financial Needs

Money is the blood flow of a business. So, to run our business, we need a huge amount of

money. But we (all the partners) will not able to finance all amount of money. We are

applying for financing to bye machinery, furniture, office equipment, computer, raw

materials and to pay office and factory security.

We need 50 lakh taka, in which loan amount is 30 lakh and partners contribution is 20 lakh

taka.

So, the debt-equity ratio is 60:40.

3.2 Loan Disbursement

For the following purposes the loan fund will be utilized:

Particulars TK.

Machinery

Office equipment

Computer

Office/factory security

Raw material & Establish Expense

20,00,000

1,40,000

2,40,000

1,20,000

5,00,000

Total TK. 30,00,000

Debt,60%

Equity,40%

Graphical Presentation of

Debt-Equity Ratio

3. Financial Documents


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3.3 Cash Flow Statement (projected)

M/s. Alpona Label

Pro Forma Cash Flow Statement

Particulars 2011 2012 2013

Receipt:

Sales

Disbursements:

Equipment purchase

Inventory

Salaries

RentUtilities

Advertising

Insurance

Office expense

Commission

Travel expense

Transportation

Office security

Interest & tax

Loan paid

Total disbursement

Cash inflow

Beginning balance

Ending Balance

73000000

2380000

54000000

2964000

480000175000

100000

36000

60000

60000

20000

25000

120000

3793000

453853

6,44,66,853

8533147

5000000

1,35,33,147

100000000

-------

68000000

2964000

480000170000

120000

36000

55000

70000

25000

30000

120000

6737846

517392

7,93,25,238

20674762

13533147

3,42,07,909

118500000

-------

82000000

2964000

480000165000

130000

36000

55000

80000

25000

35000

120000

7052270

589827

9,37,32,097

24767903

34207909

5,89,75,812


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3.4 Three-Year Income Projection:

M/s. Alpona Label

Pro Forma Income Statement

Particulars 2011 2012 2013Sales

Less: Cost of goods sold

Gross profit

Operating expenses

Salaries

Rent

Utilities

Advertising

Transportation

Insurance

Depreciation

Office expense

Bad debt expense

Commission

Travel expense

Total Operating Expense

Earnings Before Interest &Tax

(-) Interest expense

Earnings Before Tax

(-) Tax

Net Income

7,80,00,000

(6,00,00,000)

1,80,00,000

29,64,000

4,80,000

1,75,000

1,00,000

25,000

36,000

1,58,000

60,000

10,000

60,000

20,000

(40,88,000)

1,39,12,000

(4,20,000)

1,34,92,000

(33,73,000)

1,01,19,000

10,50,00,000

(7,50,00,000)

3,00,00,000

29,64,000

4,80,000

1,70,000

1,20,000

30,000

36,000

1,58,000

55,000

10,000

70,000

25,000

(41,181000)

2,58,82,000

(3,56,461)

2,55,25,539

(63,81,385)

1,91,44,154

12,15,00,000

(9,00,00,000)

3,15,00,000

29,64,000

4,80,000

1,65,000

1,30,000

35,000

36,000

1,58,000

55,000

10,000

80,000

30,000

(41,43,000)

2,73,57,000

(2,84,026)

2,70,72,974

(67,68,244)

2,03,04,730


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3.5 Balance Sheet (projected)

M/s. Alpona Label

Pro Forma Balance Sheet

Particulars 2011 2012 2013Current Asset

Cash & Bank

Inventory

A/C receivable

Total Current Asset

Fixed Asset

Equipment( machinery, computer,

furniture) 2380000

(-) Depreciation 158000

Office security

Total Fixed Asset

Total Asset

Liabilities & Equities

Current liability

A/c payable

Long-term Liabilities

Loan 3000000

(-) Installment 453853

Total Liabilities

Owners equity

Net income

Total equity

Total Liabilities & Equities

1,35,33,147

50,00,000

1,87,90,000

3,73,23,147

22,22,000

1,20,000

23,42,000

3,96,65,147

2,50,00,000

25,46,147

2,75,46,147

20,00,000

1,01,19,000

1,21,19,000

3,96,65,147

3,42,07,909

60,00,000

3,09,00,000

7,11,07,909

20,64,000

1,20,000

21,84,000

7,32,91,909

4,00,00,000

20,28,755

4,20,28,755

1,21,19,000

1,91,44,154

3,12,63,154

7,32,91,909

5,89,75,812

65,00,000

4,55,05,000

11,09,80,812

19,06,000

1,20,000

20,26,000

11,30,06,812

6,00,00,000

14,38,928

6,14,38,928

3,12,63,154

2,03,04,730

5,15,67,884

11,30,06,812


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EXPLORER

3.6 Break-even analysis

Breakeven mean when total revenue is equal to total cost. At this point, there is no profit and

no loss.

Break Even Point:Sales = VC + FC + Profit

1.30Q = 1.14Q + 40,00,000 + 0

0.16Q = 40,00,000

Q = 2.5 crore labels.

Break even sales price:

= (1.30 * 2.5 Crore Label)

= 3.25 crore TK.

Loan Amortization

Step: 01

PVA=

30,00,000 =

=

=TK. 8,73,853.06 (approx) per year

Step: 02

Separation of interest and principal amount.

1 2 3 4= (3 5= (2-4) 6= (3-5)

End of

the year

Loan

installment

Loan at the

beginning

Interest

payment

Principal

amount

Loan outstanding

at the end of the

year

1 873853 3000000 420000 453853 2546147

2 873853 2546147 356461 517392 2028755

3 873853 2028755 284026 589827 1438755

4 873853 1438928 201450 672403 766525

5 873853 766525 107314 766525 0


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Risk Assessment:

In our country instability in RMG industry is a general incident. This instability may be

disrupts our business operation properly through reducing demand of label. The other risks

are-1. Price Risk: Price variation due to changing customer preferences, supply condition

and general business condition.

2. Demand Risk: Demand for label may not be as high as we expected.3. Economical risk: The plan is based on the current market trends. Change in

economic pattern may include substantial change in the plan.

4. Estimation Risk: The financial amount may be overestimate and underestimate.