PROJECT AT A GLANCE

Name of Firm : Harisiddhi Brick and Tiles Factory (lumbini) Ltd

Proposed Changed Name : Diamond Brick and Tiles Factory ( lumbini) Ltd

Location of Business/Factory : Barsauli. Rupandehi, Nepal

Nature of Business : Production of Bricks /tiles

Legal Status : Public Limited Company

Shareholders(New group) : Mr. Miyadin Miya and Sachin Pal Baidhya

Market : Domestic
Project Cost and Capital Requirement:

Particulars Total Fund To be financed To be financed by

Required by loan the Capital

Fixed Capital 21,100,000.00 10,000,000.00 11,100,000.00

Working Capital 9.246,386.76 5.000,000.00 4,246,386.76

Major Financial Indicators:

Sales at 70% Capacity : Rs 42,840,000.00

Variable Cost at 70% Capacity : Rs 36.490, 800.00
Annual Fixed Cost : Rs 820,238.96
Net Profit at 70% Capacity : Rs 1,888,445.28
Break even Point (Capacity Utilization) : 36%

Break even Point (Rs.) : 25,850,773.89

Pay Back Period : 4 years1 month

IRR in % : 30.23
Debt Service Ratio (times) : 1.90

(Cash Profit before intt./ installment + Inn)

 Executive Summary:

1. This financial project report is prepared to analyze the financial viability of bricks
production by MIS Harisiddhi Brick and Tiles Factory (lumbini) Ltd to be run under the
new stakeholder.Theproposed changed name of the company will be MIS Diamond Brick and
Tiles Factory (lumbini) Ltd .1

2. The registered office and factory of the company is located at Barsauli, Gonaha VDC-
8,Rupandehi.
3. The principal objective of this project report is to analyse the finanacial viability of the
project and to take credit facility for fixed capital and working capital from bank and other
financial institution.
4. The management of the company is taken by the new group under Mr. Miyadin Miya son of
MrRamat Miya resident of Birpur VDC-9, Chandrauta, Kapilvastu and Sachin Pal Baidhya
Grand son of Dr. Balaram Pal and son of Sundhar Dev Baidhya aged 32, resident of
Tripurashwor, Kathmandu, Nepal
5. The total cost of the project is estimated at Rs. 30,346,386.76 for fixed capital as well as for
working capital requirement. The fixed assets investment and working capital requirement
are Rs 21,100,000.00 and 9,246,386.76 respectively. Shareholders stake in the project cost is
Rs 15,346,386.76 for fixed assets and working capital required with detail as Rs.
11,100,000.00 for fixed capital and 4,246,386.76 for working capital respectively. Similarly
the loan financing to the project is proposed for Rs. 10,000,000.00 for fixed capital loan and
5,000,000.00 working capital requirement.
6. Working capital requirement of the firm is estimated to be Rs. 9,246,386.76 at 70% Capacity
utilization and approx 54.08% i.e. Rs 5,000,000.00 would be financed by loan from Banks or
financial institutions and remaining by capital.
7. The return on total capital employed (including loan) of the firm is estimated It 8.33% in the
1st year at 70% capacity of operation and will increase up to 17.06% at the fifth year of
operation.
8. The break even point of the company is at 36% at 70% capacity of operation.
9. The internal rate of return (IRR) of the project taking total investment including working
capital is at 30.23% based on the projected cash flow of project taking into account the
estimated sales revenue of the whole project (including working capital) at the end of fift
year is Rs. 30,067,505.57 .IRR is too adequate for the project.
10. Payback period of the project is estimated to be 4 years 1 month.

Conclusion: having regards to the positive financial projections, average break even point
adequate IIR, cash profit and sufficient debt service coverage ratio shows that the project of
the_company is financially feasible and viable.