COMPANY PROFILE FOR LOAN

Introduction

There has been a substantial raise in the consumption of liquefied petroleum gas (LPG) in the
last ten years. The annual LPG consumption in Bangladesh has grown from 5,500 metric tons in
2005 to 145,800 metric tons in 2019. Furthermore, with continued economic development in
Bangladesh as well as increasing awareness in the use of LPG as the best alternative to firewood
and charcoal, the consumption of LPG will grow to a significantly high level in both urban and
rural areas. And with the Bangladesh government’s ambition to scale up the use of LPG across
the nation, it will lead to increase in LP Gas demand and supply to hotels, homes, factories as
well as petrol stations.

Although competition in the LP Cooking gas business has increased over the past few years in
Bangladesh, with our effective marketing and supply strategies, building close client relationship
as well as providing complementary services, the established LP Gas retailer like M/S S & S
Trading can still be profitable and assured of recovering its entire investment.

The Company

M/S S & S Trading established LPG (Liquefied Petroleum Gas) distributer/retailer in the
Chattogram District of the Chattograam Division in Bangladesh to cater to the booming LP Gas
(cooking gas) demand.

M/S S & S Trading obtain a trade license to operate as a Liquefied Petroleum Gas (LPG;
popularly known as cooking gas) distributor/retailer in Bangladesh. M/S S & S Trading will be
equipped with a strong team with both technical and business background in managing all
aspects of an LP Gas business: organizing, financing, marketing, promoting products and
services, and solving technical and organizational problems.

Products and Services:

Our products and services include:

 LP Gas (cooking gas) in 6kg, 15kg, 30kg and many other volumes.
 Lubricant
 Home delivery of products and services.

Customers/clients:

M/S S & S Trading deliver LP Gas to household, industrial and commercial customers in
Chaattogram City and will expand to other location of the city .
 M/S S & S TRADING

1. The Total Cost Of The Business Has Been Estimated At TK.8,70,00,000

Including An Estimated Working Capital Of TK. 2,00,00,000 And Fixed Cost Of
The Business Now Stands At TK. 6,70,00,000. The Cost Of The Business
Estimated Show Below:

Cost Of The Project Amount In TAKA

Land Development 50,00,000
Shed & Civil Work 1,45,00,000
Office Furniture 10,00,000
LPG Cylinder 2,45,00,000
Delivery Van 1,50,00,000
Fixed Cost 6,70,00,000
Working Capital (One Year) 2,00,00,000
The Cost Of Business 8,70,00,000

2. MEANS OF FINANCE
The above estimated cost of the project is proposed to be financed as under:

Particulars Amount In TAKA

Sponsors Existing Contribution 5,00,00,000
Loan from bank 8,70,00,000
The cost of Business 12,70,00,000

3. SPONSORS EQUITY & BANK FUND

Cost of head Sponsors equity Bank fund Total

(%) (%) (%)
Fixed cost 42.52 57.48 100
Working capital 0 100 100

4. TOTAL SALES

One Year Estimated Sales

TAKA

LPG Sales 30,00,00,000

 Lubricants 5,00,00,000

M/S S & S TRADING

Civil Works

Land Development : Filling Land Cost 20,00,000/-

Boundary Wall : Wall making Cost 30,00,000/-
Office Building : A office building to be built there which cost will be 10,00,000/-
LPG Shed
Space for shed 6,000 sft
Per square feet making cost will be as under @ 2000/- sft
Total amount 6,000 x 2000/- = 1,20,00,000/-
LPG Cylinder
Description Brand Quantity Price Amount
12 Kg Cylinder Brand 5000 2100 1,05,00,000
35 Kg Cylinder TOTAL 2000 5300 1,06,00,000
35 Kg Cylinder BM 2000 5200 1,04,00,000
Delivery Van:
Covered Van (Unit-TK.45,00,000 x 2) 90,00,000
Delivery Truck (unit –TK.20,00,000 x 3) 60,00,000
 M/S S & S TRADING

5. SALES COST
The annual Sales cost at full operation capacity is estimated at TK. 32,35,05,000. The cost of
LPG & Lubricant account for 85% of the purchase cost.

ANNUAL PRODUCTION COST AT Cost

FULL CAPACITY (year ) Items
( TAKA)

Cost of LPG gas 25,50,00,000

Cost of Lubricant 4,25,00,000

Utilities 30,00,000

Maintenance and repair 15,00,000

Wages & Salary 80,00,000

Administration Costs 20,00,000

Cost of marketing, distribution & Tax 20,00,000

Total Operating Costs 31,40,00,000

Depreciation 16,75,000

Cost of Finance 78,30,000

Total Sales Cost 32,35,05,000

 M/S S & S TRADING

Salles cost of the Buusiness

Product Cost

a) LPG Sales Target : (Daily 8,500 Kg

Per kg @TK. 100 x 8,500 = 8,50,000/-

Total LPG Purchase Price 8,50,000 x 300=25,50,00,000/-

b) Lubricant Sales Target : (Daily 315 Liter

Per Liter piece average @ 450 x 315 = 1,41,667/-

Total LPG Purchase Price 1,41,667 x 300= 4,25,00,000/-

 M/S S & S TRADING

Wages and Salaries

It i salary and wages for the manpower as under:-

Sl.No. Designation No. of Person Monthly Salary Amount

1. Manager 3 15,000/- 45,000
2. Accountant 1 12,000/- 30,000
3. Sales Officer 5 12,000/- 60,000
4. Marketing Officer 5 14,000/- 70,000
5. Cashiar 4 13,000/- 52,000
6. Skilled Labor 10 7,000/- 70,000
7. Semi Skilled Labor 10 6,000/- 60,000
8. Delivery Van Driver 10 15,000/- 1,50,000
9. Driver Assistant 10 7,000/- 70,000
10. Assistant 6 6,000/- 36,000
11. General 4 6,000/- 24,000
6,67,000

Yearly salary will be @ 6,67,000 x 12 = 80,00,000/-

 M/S S & S TRADING

Power/ Fuel

a) Power consumption 300 Days will be

Total Cost Commercial =Tk. 6,00,000/-

b) Fuel Consumption for Generators and Vehicle

Per liter Fuel @Tk. 80

Total Fuel consumption 100 liter x 80=8,000/-

Total 8,000x300 days= 24,00,000/-

 M/S S & S TRADING

6. DEBT-SERVICING :

Interest On Term Loan @9% 78,30,000

7. DEPRECIATION HAS BEEN CALCULATED AT THE FOLLOWING RATE :

Building @ 2.5%
Equipment & Vehicle @ 2,5%
Shed @ 2.5%

8. DEBT SERVICE COVERAGE RATIO(DSCR)

Works Out As Under Amount in TAKA

Income
Net Profit 2,64,95,000
Add-Depreciation 16,75,000
Add-Interest On Term Loan 78,30,000
Income Available For Meeting, Liabilities 3,60,00,000

1. BREAK EVEN ANALYSIS

Sales 35,00,00,000
Total Cost/Expenses 32,35,05,000

Analysis of Total Cost Total Fixed Variable

LPG & Lubricant Cost 29,75,00,000 29,75,00,000
Wages & Salary 80,00,000 80,00,000
Repairs & Maintenance 15,00,000 15,00,000
Depreciation 16,75,000 16,75,000
Electricity & Fuel 30,00,000 30,00,000
Cost of marketing, distribution & Tax 20,00,000 20,00,000
Administrative Cost 20,00,000 20,00,000
Financial Expenses/Term Loan & Other 2,12,30,000 2,12,30,000
Total 33,69,05,000 3,24,05,000 30,45,00,000
 M/S S & S TRADING

2. CASH FLOW STATEMENT :

A. A SOURCE OF FUND :

Long Term Loan 6,70,00,000

Operating Profit 3,60,00,000
Depreciation 16,75,000
TK. 10,46,75,000

B. UTILIZATION OF FUND:

Fixed Capital Expenditure 1,34,00,000

Payment Of Interest 78,30,000
TK. 2,12,30,000

C. PROFITABILITY:

a) Total Sales 35,00,00,000

b) Total Cost of Sales 32,35,05,000
c) Net Profit 2,64,95,000

d) Return on Sales = 7.57%

D. INVEST RATIO:

d) Return on Total Investment = 20.86%

3,05,19,180
×100
55,48,98,000

d) Return on Equity = 52.99%

3,05,19,180
×100
16,64,94,000

08. WORKING CAPITAL REQUIRMENT:

1. LPG & Lubricant Cost 1,40,00,000

2. Maintenance and repair 1,00,000
 2. Salaries & Wages 15,00,000
3. Utilities Exp. 3,00,000
4. Administrative Cost 1,50,000
5. Cost of marketing, distribution & Tax 1,50,000
5. Cash in Hand 38,00,000
Estimated Working Capital 2,00,00,000

M/S S & S TRADING

09. SALES ESTIMATES (AT 90% CAPACITY):

Total Sales Estimated 35,00,00,000

10. COST OF GOODS SOLD:

LPG & Lubricant purchase Cost 29,75,00,000

Electricity & Fuel 30,00,000
Wages & Salary 80,00,000
Depreciation 16,75,000
31,01,75,000

11. ADMINISTRATIVE & SELLING EXPENSES:

Repairs & Maintenance 15,00,000

Administrative Cost 20,00,000
Selling, Distribution Exp. & Tax 20,00,000
Financial Expense & Interest 78,30,000
1,33,30,000

12. EARNING FORE-CAST (ASSUMING ONE YEAR OF OPREATION)

Sales 35,00,00,000
Less-Cost of Goods Sold 31,01,75,000
Gross Profit 3,98,25,000
Less-General, Administrative & Selling Exp. 1,33,30,000
Net Profit 2,64,95,000
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