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Business Programme >>>Feasibility Report
 
GUIDELINES FOR PREPARATION OF FEASIBILITY REPORT
Requirement for preparing feasibility report
  1. Technical aspects:
    • Cost of the project;
    • Annual production capacity & manufacturing process;
    • Location, infrastructure facilities features and estimated cost of the land;
    • Civil drawing(s) and cost of civil works;
    • Estimated requirement of raw material(s) with source of availability;
    • All input output data of the project;
    • Utility services required;
    • Implementation Schedule.
    Note: Relevant things to comply with the Machinery Procurement Policy of the Sangstha.
  2. Market aspects:
    • Use and users of the product;
    • Estimation of demand;
    • Market price of the proposed product(s);
    • Analysis/opinions on existing market competition;
    • Marketing strategy;
    • Existing capacity and capacity under development, if any.
  3. Financial aspects:
    • Cost of the project & Means of Finance;
    • Debt Equity Ratio;
    • Fixed Assets Coverage Ratio (FACR) to be considered as 1.50;
    • Fixed Assets Coverage Ratio to be considered as 2 times (Apart from Limited Company);
    • Capital Structure;
    • Assumption of Financial Evaluation;
    • Profit Estimation;
    • Sensitivity analysis
    • Debt-Service Coverage Ratio (DSCR)
    • Break Even Analysis
    • Cash Flow Statement
    • Projected Balance Sheet
    • Internal Rate of Return (IRR)
  4. Management aspects:
    • Structures & Shares;
    • Memorandum of Articles and relevant (Joint Stock Company’s) registration certificate;
    • Introduction to members of the proposed management, relevant experience, net worth (assets declaration);
    • Comparison of equity proposed and net worth declared;
    • Source of working capital or working capital loan;
    Note: Credit Risk Grading will be required for proposed loan account more than Bangladesh taka 5.00 million and if necessary, Credit Rating will be required.