Project Profile

Four H Dyeing & Printing Ltd. (Yarn Dyeing Unit)

Daily 17 MT Yarn Dyeing

April 12, 2021

Project Finance Solution

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 Four H Dyeing & Printing Ltd. (Yarn Dyeing Unit)
Daily 17 MT Yarn Dyeing

Table of Content
1. Executive Summary 2

2. Project Details 10
2.1. Project Cost Details 11
2.2. Product 14
2.3. Production Capacity and Utilisation 15
2.4. Raw Material 15
2.5. Financial Summary In Graphs 16
2.6. Project Evaluation 23
2.7. Per Unit Cost Sheet 24

3. Project Implementation Schedule 25

3.1. Current Status of the Project 26

4. Term Sheet of Facilities 28

5. Sponsors and Management 30

5.1. Group Summary 30
5.2. Shareholding Position 40
5.3. Organisation and Staffing 46

6. Technology Consideration 48
6.1. Production Process 48
6.2. Safety Requirement 51
6.3. Required Manpower 51

7. Sector Analysis 53
7.1. Review and Outlook, 2020 Bangladesh Garments and Textile Industry 53

8. Financial Projection 63

9. Projected Financial Statement 65

10. Working Capital Requirement 69

11. Other Statements 71

12. Calculation Sheet 75

13. SWOT Analysis 78

14. Annexure 79
14.1. Calculation of Financial Ratios 79
14.2. Abbreviation of the Financial Terms 80

Project Profile 1
 Four H Dyeing & Printing Ltd. (Yarn Dyeing Unit)
Daily 17 MT Yarn Dyeing

1. Executive Summary1

Chapter Highlight
● A dyeing and printing company incorporated in 2009.
● Worked as backward linkage to the Group.
● The Company belongs to Four H Group.
● The Company has fabrics dyeing and knitting units. However, it does not have a yarn
dyeing facility of its own. The proposed project is a yarn dyeing project which has a
daily 17 MT production capacity.
● In 2020, total exports of the Four H Group crossed USD 250.0 million registering
7.8% growth compared to 2019.
● Four H Dyeing & Printing Ltd. is awarded A3 and ST-3 credit ratings.
● The successful project at 80% capacity utilization is expected to generate BDT
1,223.2 million sales and BDT 331.2 million net profit.

Four H Dyeing and Printing - The Journey Starts Eleven Years Ago
Four H Dyeing and Printing Ltd. is a dyeing and printing company, incorporated in 2009. It
provides backward linkage support to its sister concerns for knitting, dyeing and printing
facility. The Company belongs to Four H Group. Within eleven years of operation, it is
considered one of the important dyeing factories in the sector. Four H Dyeing & Printing Ltd. is
a modern, automatic and International-standard located in Chittagong on Kalarpool, Chapara,
Patiya on the bank of river Karnafully. The site covers 2400 decimal land area and allows a total
built-up area of 1200 Decimal with existing 600 decimal of production area. The project site is
surrounded by a river and a paddy field. From the port the site can be reached in 20-30 minutes
by water way and 50-60 minutes by road way. The site is about ten kilometers from Agrabad,
which constitutes the old commercial area of the city. Mr. Gauhar Siraj Jamil is the key sponsor
of the Group, who is also Managing Director of Four H Dyeing and Printing. The Group has two
regional offices located at New York and Hong Kong. The Vision of the Four H Group is:
Four H Vision is to materialize the global opportunity by Manufacturing products of
international standards and to become customer friendly competitive suppliers of highly
valued global brands.
In 2020, total exports of the Four H Group crossed USD 250.0 million registering 7.8% growth
compared to 2019. Four H Group accommodates 24,445 staff in different levels. Many reputed
clients in its credit list. Quality, compliance and accountability helped the Group to achieve this
success within only 17 years of operation.

Capital Expenditure Plan

1
Throughout the report the financial amount is in BDT million except mentioned otherwise.

Project Profile 2
 Four H Dyeing & Printing Ltd. (Yarn Dyeing Unit)
Daily 17 MT Yarn Dyeing

At present, the Company has daily 30 MT finished fabrics dyeing capacity. It also has a daily 35
metric ton knitting capacity along with all over painting facilities. However it does not have a
yarn dyeing facility.
Management has planned to establish a yarn dyeing factory. To earn cost competitiveness it
looks for a new capital expenditure plan. To meet the existing gap and future requirement of
the Group, it would require daily 17 MT yarn dyeing production capacity.
The BMRE project will have a daily 17 MT yarn dyeing production capacity. The BMRE Project
also requires 200 Decimal land which is also procured and transferred to the Company name.
The BMRE Project will create another total 254 Individuals.
The objective of this Project Profile to assess viability and objectivity of the yarn dyeing of
capital expenditure plan.

Four H Group
Backward Linkage Forward Linkage
30 MTD Polly
22 MTD
Knitting Unit WIP Cartoon Items
421
35 MTD Labeling
Lines
Fabrics Dyeing 25 MTD Packaging
RMG
Unit WIP Unit Gum Tape
17 MTD 128 Vehicles all
Yarn Dyeing Unit WIP Logistics together
All Over Printing

Project Profile 3
 Four H Dyeing & Printing Ltd. (Yarn Dyeing Unit)
Daily 17 MT Yarn Dyeing

Key Sponsor
Mr. Gauhar Siraj Jamil

Mr. Gauhar Siraj Jamil is one of the

Founder and Key Sponsor of Four H
Group. Mr. Jamil was born in 1966 and
completed his Masters Degree. He
started his career in the RMG sector and
gathered huge experience in related
industries. In 2004, he along with his
business partners founded Four H
Group. In 2020, the Group generated
$250 foreighn export income. In the last
17 years, Mr. Jamil established more
than 20 successful Companies in
different sectors. The major companies
name are given below:

● Four H Fashions Ltd.Garments

● Four H Lingerie Ltd.
● Belamy Textiles Ltd.
● Divine Design Ltd.
● Nafisa Apparels Ltd.
● Badgetex Apparels Ltd.
● Four H Apparels Ltd.
● Charm Fashion
● Avenger Textiles Ltd.
● Divine Intimates Ltd.
● Felix Fashions Ltd.
● In Vogue Tex Ltd.
● Four H Dyeing & Printing Ltd.
● Intimates Elastic & Accessories
Ltd.
● Islam Pack & Accessories Ltd.
● Trinity Logistics
● Divine Rubber Garden
● Divine Green Valley
● Karnafully Dairy Farm
● Siraj Four H Sports Academy

Project Profile 4
 Four H Dyeing & Printing Ltd. (Yarn Dyeing Unit)
Daily 17 MT Yarn Dyeing

Reputed Buyers of the Group

A number of reputed clients in its credits throughout the world; namely:
● USA: PVH (CKU, Warner's, OLGA, Tommy Hilfiger, IZOD), JCPenney, Carter's, Forever
21, Sears
● Canada, USA, UK: Walmart
● Australia: Target Australia, Brandella
● Europe: H&M, C&A, Next, Tesco, Celio, Etam, Primark, Asda George (Walmart), Lindex,
Europe Teddy, Cubus, Lidl, L. Ten Cate, M&S, LPP, Okadi etc.

Project Profile 5
 Four H Dyeing & Printing Ltd. (Yarn Dyeing Unit)
Daily 17 MT Yarn Dyeing

Proposal to Bank Loan

Total Project size will stand BDT 2,352.8 million. The Project cost is proposed to be financed by
BDT 1,647.0 million Project Loan and BDT 705.8 million Shareholders’ Equity. Debt Equity
ratio is 70 : 30. Moreover, the Project would require BDT 98.1 million funded working capital
loan and BDT 77.2 million non-funded working capital. The Company expects an 18 months
construction period for the machinery and civil construction of Project estimated BDT 222.3
million.

Project Profile 6
 Four H Dyeing & Printing Ltd. (Yarn Dyeing Unit)
Daily 17 MT Yarn Dyeing

Loan Requirement

Long-term Loan Non-funded Loan Funded Working

of BDT 1,647.0 of BDT 77.2 Capital Loan of
Million Million BDT 98.1 Million
● New machinery ● Letter of Credit for ● Loan on Trust
procurement raw material import​ Receipt and Packing
● Civil construction Credit and Cash
Credit loan

● 5-years loan period ● 3-months revolving ● 1-year revolving

● 18 months grace nature nature loan
period ● Interest rate 1.5% ● Interest rate 9.0%
● Interest Rate 9.0% annually annually
annually

Project Profile 7
 Four H Dyeing & Printing Ltd. (Yarn Dyeing Unit)
Daily 17 MT Yarn Dyeing

The Project is considered a strong and highly recommended value added Group as well as to
the economy. The Feasibility Report says, after successful implementation of the Project will be
a great value addition to the Group. To give another vibe to the market and enjoy the economy
of scale, it is required a large investment with support of long-term bank finance.
Project at a Glance
Particular Details
Project Four H Dyeing & Printing Ltd. (Yarn Dyeing Unit)
Arakan Road, Ward #06, Chapra, Kalarpool, Patiya,
Project Site Chittagong
Project Area 200.0 Decimal
Project Premise: Own or Rented Own
Four H Group, 778, D. T. Road, Ashkarabad,
Corporate Office Double Mooring, Chittagong
Legal Entity Private Limited Company
Industry Manufacture of Garments Yarn Dyeing
Chairman: Mrs. Shahara Chowdhury
Key Sponsors Managing Director: Mr. Gauhar Siraj Jamil
Date of Incorporation 02 September 2007
Year of Establishment 2009

Yarn Dyeing For Knitted Fabric

Nylon Dyeing for Elastic
Finished Goods Polyester Dyeing for Elastic

Project Profile 8
 Four H Dyeing & Printing Ltd. (Yarn Dyeing Unit)
Daily 17 MT Yarn Dyeing

Cotton Plus Polyester Dyeing for Sewing Thread

Raw Material Sewing Thread, Dyes, Chemical, Distilled Water etc.
Daily Capacity 17 MT Yarn Dyeing
Authorized Capital: BDT 100.0 Million
Capital Structure Paid-up Capital: BDT 20.0 Million
Total Project Cost BDT 2,352.8 Million
Bank’s Contribution BDT 1,647.0 Million
Shareholders’ Contribution BDT 705.8 Million
Working Capital Loan Requirement BDT 98.1 Million
Employment Generation Total 254 Individual
Machinery Origin Japan, Portugal and China
Market Focus Works as backward linkage of Europe based clients
Major Competitors Large Yarn Dyeing Factory of Bangladesh
Group Four H
Brand Four H
Website http://www.fourhgroup.com/
Mr. Sahadat Uddin Md Sa'dat
D.G.M. (Accounts)
Mobile: 01819-283344
Key Contact Person E-mail: sahadat@fourhgroup.com
Expected Commercial Operation March 2022

Key Important Indicators ​

Experienced Experienced Low debt equity

promoters​and technical persons ratio 0.8 X
Reputed buyers

Sales BDT 1,223.2 Good corporate IRR 19.3%, NPV BDT

million and profit governance 1,224.7 million
BDT 331.2 million

Debt Service Brand new good Group saw export

Coverage Ratio 1.5 X quality machine growth

Project Profile 9
 Four H Dyeing & Printing Ltd. (Yarn Dyeing Unit)
Daily 17 MT Yarn Dyeing

2. Project Details

Chapter Highlight
● Total project is in 200.0 Decimal land, transferred to the company.
● Production capacity is Daily 17 MT Yarn Dyeing in different categories
● Managing Director: Gauhar Siraj Jamil
● Finished Goods:
○ Yarn Dyeing For Knitted Fabric
○ Nylon Dyeing for Elastic
○ Polyester Dyeing for Elastic
○ Cotton Plus Polyester Dyeing for Sewing Thread
● Raw Material: Dyeies, Chemical and distilled water
● Debt : Equity :: 70% : 30%
● Total Employment Generation: Total 254 Individual

After succeeding the first initiative, the Sponsors has taken another landmark project. The
Group has ample foreign order, strong group support, strong fund support from external
borrowing. Moreover, the sponsors have huge equity earnings from Retained Earning.
Moreover, at this moment, the Group has strong backward linkage support (Dyeing & Printing,
Accessories and packaging) which can help the Group gaining price benefit. In this ground
point, a project profile and viability assessment report was prepared to make another phase of
investment of the yarn dyeing facility.

Project Profile 10
 Four H Dyeing & Printing Ltd. (Yarn Dyeing Unit)
Daily 17 MT Yarn Dyeing

Cost of Project and Sources of Funding

Total
Particular Bank Percent Equity Percent Amount
Land and Land Development 0.0 0.0% 230.5 100.0% 230.5
Building and Civil Construction 848.6 76.4% 262.6 23.6% 1,111.2
Imported Machinery 552.0 90.0% 61.3 10.0% 613.3
Electrical Cost 104.9 70.0% 45.0 30.0% 149.9
Mechanical Cost 86.0 70.0% 36.9 30.0% 122.9
Furniture and Fixture 18.0 60.0% 12.0 40.0% 30.0
Vehicle and Transport 30.0 60.0% 20.0 40.0% 50.0
Fire Hydrant & Equipment 7.5 50.0% 7.5 50.0% 15.0
Decoration 0.0 0.0% 30.0 100.0% 30.0
Contingency 0.0 0.0% 0.0 100.0% 0.0
IDCP 222.3 100.0% 0.0 0.0% 222.3
Project Cost Excluding IDCP 1,647.0 70.0% 705.8 30.0% 2,352.8
Project Cost Including IDCP 1,869.3 72.6% 705.8 27.4% 2,575.1
Funded Working Capital 98.1 75.0% 32.7 25.0% 130.8
Cost of Project Including Funded
Working Capital 1,967.4 72.7% 738.5 27.3% 2,705.9

2.1. Project Cost Details

Land and Land Development
Total land is 200.0 Decimal which has a market value of BDT 230.5 million, which comprises
land procurement and land development.

Land Cost Details

Head Description Amount
Land 200 Decimal @Tk 500,000 100.0
Land Development 46.1
Building Drawing & Design 26.7
Water Supply , Plumbing and
Sanitary System 230,823 SQ FT@ Tk 150 34.6
Rain Water Harvesting System 230,823 SQ FT@ Tk 100 23.1
Total 230.5

Project Profile 11
 Four H Dyeing & Printing Ltd. (Yarn Dyeing Unit)
Daily 17 MT Yarn Dyeing

Building and Civil Construction

The Management has allocated a budget of BDT 1,111.2 million for Building and Civil
Construction. Total area of the proposed building is 230,823 square feet. The five storied
building will have a total of 248,500 square feet of space.

Civil construction cost details

Building Cost Description Amount
5 Storied Yarn Dyeing Building ,
Floor Area- 230823 SFT , Total Area
49700*5=248500 SFT Construction Cost 1,111.2

Imported Machinery
The imported machinery and equipment will be Yarn Dyeing Machine, Automatic Package
Winder Machine, Overhead Crane, RF Dryer, Hydro Extractor, Part F and Winding Machine .
Total machinery price is valued BDT 613.3 million. Beside Machinery, Erection and Installation,
LC Charge, Insurance and C&F Charge also included.

Capital Machinery Description Amount

1. 2 Set VERTICAL APPARETUS Mod. Pulsar
Part A. Yarn Dyeing Machine: 2000/1965-- 1020*2 kg
2. 4 Set VERTICAL APPARETUS Mod. Pulsar
Supplier: Loris Bellini 1600/1965-- 648*4 kg
3. 5 Set VERTICAL APPARETUS Mod. Pulsar
Capacity 7315 Kg 1280/1500-- 317*5 kg
4. 5 Set VERTICAL APPARETUS Mod. Pulsar
1040/1320-- 168*5 kg
5. 2 Set VERTICAL APPARETUS Mod. Pulsar
201.8
680/1320-- 58*2 kg
6. 2 Set VERTICAL APPARETUS Mod. Pulsar
6800/780--34*2 Kg
7. 4 Set SMALL BATCHES DYEING
MACHINE Mod. RBNV 270/1965-- 11*4 Kg
8. 3 Set SMALL BATCHES DYEING
MACHINE Mod. RBNV 270/975--6*3 Kg
9. 3 Set SMALL BATCHES DYEING
MACHINE Mod. RBNV 270/510--4*3 Kg
Part B. Automatic Package Winder
Machine:
1. 3 Sets Precision SOFT WINDING Machine:
177.4
480 Spindles, Model SINCRO
2. 3 Sets Semi Precision Hard WINDING
99.8
Supplier : FADIS Machine: 480 Spindles, Model MITO
3. 1 (Hard 24+Soft 24) Nylon WINDING
Machine: Model SINCRO Plus- 24.9
FFM-RFMMITO

Project Profile 12
 Four H Dyeing & Printing Ltd. (Yarn Dyeing Unit)
Daily 17 MT Yarn Dyeing

20 Sets 4 Spindle Capacity , Model: AW 100

Supplier : Thread Master High Speed Spool Winding Machine with Auto 3.3
Duffing

Accessories Plastic Dye Tube

1. Cotton 100000 Pcs 5.3
2. Sewing Thread 20000 Pcs 2.9

Part C. Overhead Crane: 10 Ton 0.0

2 Sets Double Girder Overhead Crane EHD
11.5
EUROHOIST 10T, 16M, HOL:12M, Capacity 10 Ton

Part D, RF Dryer 12 Ton

Supplier : Strayfield 2 Sets SO-200 TS Dryer 25.3

Part E, Hydro Extractor 48 package, 12 Ton

2 Sets T/E BERTA 36 centrifuge machine
15.0
Supplier : Dettin (Electrical Type)
1. 5 Sets TS008M High Speed Winding
Part F, Winding Machine Machine, 96 Spindles
46.1
1. 5 Sets TH-11B Hank to Cone Winding
Supplier: Tangshi Group Machine, 40 Spindles
3. 5 Set TH-001 Expander Machine
Grand Total 613,280,700.0

Utility Facility, Electrification and Equipment

The Proposed Project will require 2000 KVA electrical substations and 1500 KW Gas
Generator. Beside this, it will need 200 HP (03 Unit) Compressor, 1 ton Boiler, Deep tubewell
and water treatment plant.
The Project will require 2000 AMP Busbar Trunking System and Electrification and
Distribution Board. Total budget allocated to this purpose is BDT 149.9 million. Total
mechanical cost is allocated BDT 122.9 million.

Electrical Cost Details

Head Description Amount
Electrical Cost Electrical Cost 34.0
Solar System Installation 46.2
Generator (1.5 MW) 43.0
Busbar Trunking System 15.0
Electrification Distribution Board 10.3
Lightening Protection System 1.5

Project Profile 13
 Four H Dyeing & Printing Ltd. (Yarn Dyeing Unit)
Daily 17 MT Yarn Dyeing

Mechanical Cost Details

Head Description Amount
Mechanical Mechanical Cost 38.5
Deep Tubewell Installation 700 RFT@12000 8.4
Water Treatment Plant With Pump & Pipe Line
(100 m3)-1 Set 13.0
Cargo Lift 2 Set@8000000 16.0
Boiler 10 Ton (LC-100120020009) 19.0
Compressor (10 Bar) 3Set 6.4
RO Plant-30 m3 10.0
Hot Water Plant 50 m3 /Hour (Local Made) 6.0
Condense Recovery Plant (Local Made) 2.5
Chiller -30 Ton (2 Set) 3.0
Total 122.9

Furniture, Fixture and Decoration

Furniture and Fixture comprises Furniture, Office Equipment and one Lifts. Total budget
allocated for this purpose is BDT 30.0 million. For office decoration purpose it has been BDT
30.0 million is allocated.
Safety and Compliance
The Project will produce sophisticated product line and it will serve to a reputed clients group.
To maintain compliance, due diligence and ensuring the sustainability it would require BDT
15.0 million. This amount of money will be utilized for Fire Hydrant, Detection and Protection
and build Lightning Protection System.

2.2. Product
The Project Company will produce four kinds of products.. These are given below:

Types of Products
Annual
Products Unit Daily Capacity Capacity
Yarn Dyeing For Knitted Fabric KG 12,000 3,600,000
Nylon Dyeing for Elastic KG 500 150,000
Polyester Dyeing for Elastic KG 1,000 300,000
Cotton Plus Polyester Dyeing for Sewing
Thread KG 3,500 1,050,000
Total 17,000 5,100,000

Project Profile 14
 Four H Dyeing & Printing Ltd. (Yarn Dyeing Unit)
Daily 17 MT Yarn Dyeing

2.3. Production Capacity and Utilisation

Daily Production Capacity

Particular Unit 2022 2023 2024 2025 2026
Daily Installed Capacity Kg 17,000 17,000 17,000 17,000 17,000
Daily Utilized Capacity Kg 11,900 12,750 13,600 14,450 15,300
Capacity Utilization 70% 75% 80% 85% 90%

2.4. Raw Material

Total raw materials of the Company are categories in broadly three types. These are:
● Dyes
● Chemical
● Distilled water

Raw Materials Cost composition

Dyes &
Chemical Distilled
RM Cost in RM Cost in cost in Water cost
Item USD Percent Percent in Percent
Yarn Dyeing For Knitted Fabric 0.412 0.0% 97.1% 2.9%
Nylon Dyeing for Elastic 0.462 0.0% 97.4% 2.6%
Polyester Dyeing for Elastic 0.412 0.0% 97.1% 2.9%
Cotton Plus Polyester Dyeing for Sewing
Thread 3.412 87.9% 11.7% 0.4%

List of dyes and chemicals is given below:

● Detergent
● Antifoam
● Sequester
● Stabilizer
● Caustic Soda
● Hydrogen Per Oxide
● Peroxide killer
● Neutralizer
● Levelling
● Glauber salt
● Soda Ash
● Soaping
● Fixer

Project Profile 15
 Four H Dyeing & Printing Ltd. (Yarn Dyeing Unit)
Daily 17 MT Yarn Dyeing

● Softener
● Dye stuff for Cotton
● Brightener
● Brightener
● Polyester Levelling/Dispersing
● Polyester Buffer
● Dye stuff for Polyester
● Polyester Softener
● Neutralizer for Polyester
● Hydrose
● Caustic Soda for Polyester
● RC Agent

2.5. Financial Summary In Graphs

Project Profile 16
Four H Dyeing & Printing Ltd. (Yarn Dyeing Unit)
Daily 17 MT Yarn Dyeing

Project Profile 17
Four H Dyeing & Printing Ltd. (Yarn Dyeing Unit)
Daily 17 MT Yarn Dyeing

Project Profile 18
Four H Dyeing & Printing Ltd. (Yarn Dyeing Unit)
Daily 17 MT Yarn Dyeing

Project Profile 19
Four H Dyeing & Printing Ltd. (Yarn Dyeing Unit)
Daily 17 MT Yarn Dyeing

Project Profile 20
Four H Dyeing & Printing Ltd. (Yarn Dyeing Unit)
Daily 17 MT Yarn Dyeing

Project Profile 21
Four H Dyeing & Printing Ltd. (Yarn Dyeing Unit)
Daily 17 MT Yarn Dyeing

Project Profile 22
 Four H Dyeing & Printing Ltd. (Yarn Dyeing Unit)
Daily 17 MT Yarn Dyeing

2.6. Project Evaluation

Evaluation Sheet
Particular Average 2022 2023 2024 2025 2026
Capacity Utilization 80% 70% 75% 80% 85% 90%
Sales 1,223.2 1,063.5 1,148.2 1,224.9 1,301.5 1,378.1
Net Profit 331.2 191.5 264.2 330.5 399.3 470.7
Net Cash Flow 137.7 57.5 106.0 141.0 175.2 208.9
Cash Available for Debt
Service or EBITDA 714.2 611.9 669.1 716.3 763.2 810.2
Debt Service 479.7 478.4 479.0 479.7 480.3 481.0
Total Asset 2,396.2 2,537.4 2,432.2 2,361.9 2,325.9 2,323.5
Gross Profit Margin 41.7% 38.5% 40.6% 41.9% 43.1% 44.1%
EBIT Margin 40.3% 37.0% 39.2% 40.6% 41.8% 42.9%
EBITDA Margin 58.3% 57.5% 58.3% 58.5% 58.6% 58.8%
Pre-tax Profit Margin 31.3% 21.2% 27.1% 31.7% 36.1% 40.2%
Net Profit Margin 26.6% 18.0% 23.0% 27.0% 30.7% 34.2%
Return on Equity 22.6% 21.8% 23.8% 23.6% 22.6% 21.4%
Return on Capital
Employed 14.7% 7.9% 11.3% 14.7% 18.1% 21.4%
Cash Conversion Cycle 61 Days 59 Days 60 Days 61 Days 62 Days 62 Days
Fixed Asset Turnover 0.7 X 0.5 X 0.5 X 0.6 X 0.8 X 0.9 X
Debt to Equity Ratio 0.8 X 1.9 X 1.2 X 0.7 X 0.3 X 0.1 X
Debt Service Coverage
Ratio 1.5 X 1.3 X 1.4 X 1.5 X 1.6 X 1.7 X
Times Interest Earned
Ratio 6.6 X 2.3 X 3.2 X 4.6 X 7.3 X 15.6 X
NPV 1,224.7
IRR 19.3%
Payback Period 4.6 Year
Benefit to Cost Ratio 2.5 X
Daily Break-even Point in
Unit 10,157
Annual Break-even Point
in Amount (Million) 914.7
Break-even Capacity
Utilization 59.7%

Project Profile 23
 Four H Dyeing & Printing Ltd. (Yarn Dyeing Unit)
Daily 17 MT Yarn Dyeing

2.7. Per Unit Cost Sheet

Per KG Yarn Dyeing Average Cost (BDT)

Particular Amount Portion
Raw Material 86 37.3%
Labor 18 7.8%
Utility 9 4.1%
Depreciation 57 24.7%
Rent and Repairs 7 3.2%
Administrative Expense 4 1.8%
Selling Expense 0 0.0%
Financial Expense 37 15.8%
Income Tax 12 5.3%
Total Cost 231 100.0%

Project Profile 24
 Four H Dyeing & Printing Ltd. (Yarn Dyeing Unit)
Daily 17 MT Yarn Dyeing

3. Project Implementation Schedule

Chapter Highlight
● Land development under progress.
● Soil test already completed.
● CDA Plan is under process.
● Civil construction has been started recently.
● Machinery import requires another 9 to 10 months.
● Trial production requires one year.

Project Profile 25
 Four H Dyeing & Printing Ltd. (Yarn Dyeing Unit)
Daily 17 MT Yarn Dyeing

3.1. Current Status of the Project

The Project is in initial stage. The land procurement has been completed and it has already
transferred to the Company name. The soil test has been completed. Chittagong Development
Authority plan is under progress. The Management has planned to complete civil construction
in next one year. Thereafter, it will initiate to install the machine within the next 9-10 months. It
will require another 2-3 months to satisfy the compliance and due diligence issues.

Project Profile 26
Four H Dyeing & Printing Ltd. (Yarn Dyeing Unit)
Daily 17 MT Yarn Dyeing

Project Profile 27
 Four H Dyeing & Printing Ltd. (Yarn Dyeing Unit)
Daily 17 MT Yarn Dyeing

4. Term Sheet of Facilities

Chapter Highlight
● Long-term Project Loan is BDT 1,647.0 Million.
● Non-funded Loan is for Raw Material Import of BDT 77.2 Million.
● Working Capital Loan is BDT 98.1 Million.

Term Sheet of Facilities

Particular Details
Facility Line Long-term Project Loan
Fund Type Funded Loan
Amount BDT 1,647.0 Million
Purpose Machinery Procurement and Civil Construction
Tenure 5 Year
Grace Period 18 Month
Rate of Interest 9.0%

Facility Line Letter of Credit

Fund Type Non-funded Loan
Amount BDT 77.2 Million
Purpose Raw Material Import
Tenure 3 Month
Quarterly Rate of Interest 0.4%

Facility Line Loan on Trust Receipt

Fund Type Funded Loan
Amount BDT 77.2 Million
Purpose Raw Material Import
Tenure 1 Year
Annual Rate of Interest 9.0%

Facility Line Cash Credit Loan

Fund Type Funded Loan
Amount BDT 20.9 Million
Purpose Locally Raw Material Purchase and Internal Payment

Project Profile 28
 Four H Dyeing & Printing Ltd. (Yarn Dyeing Unit)
Daily 17 MT Yarn Dyeing

Tenure 1 Year
Rate of Interest 9.0%

Project Profile 29
 Four H Dyeing & Printing Ltd. (Yarn Dyeing Unit)
Daily 17 MT Yarn Dyeing

5. Sponsors and Management

Chapter Highlight
● Established in 2003 having only 86 machines.
● Total 1.0 million sq ft work floor of the company in its own premises.
● Total 5 MW power back up capacity.
● Highly reputed client group in its credit list.
● In 2020, total exports of the Four H Group crossed USD 250.0 million registering
7.8% growth compared to 2019.
● Maintaining 100% compliance.
● At present 13 different companies in the Four H Group.
● Experienced top management who have at least two decade sectoral experience.

5.1. Group Summary

At the zero hour of Four H Group, there was a strong emotion with a belief to grow the
business. 2003 would be marked as a founding year of Four H Group. Four H Fashions Ltd.,
starting with 86 machines, a single facility, turns into a Group of companies. With a view to
analysis of the facts & figure of Four H Group, we are furnishing the following information.
Four H an integrated manufacturer and exporter of premium quality underwear and intimate
wear in full range of fashion and casual categories in all of the seasonal, ages, sizes categories
for ladies, men and for the children. To name of you these items include brief, bikini, hi cut,
thong, hipster, thermal top–bottom, Nightwear, cami, Sportswear, Swimwear etc.

Established in 2003, Four H host as integral group concern linked at vertically and horizontally
in an industry premises configure with all of necessary infrastructure and facility such as
factory building having in total of one million square feet working floor, 5000 KW per hour
capacity are power back up. ETP to calm a group as an industrial assurance and reveal other

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 Four H Dyeing & Printing Ltd. (Yarn Dyeing Unit)
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like inspection room for its buyer and their representative, it has some design and development
section with top of the line and master expertise and computer added marking system.
To help this in the tailoring expertise in the minimizing re-suggest of fabric optimizing and
ensuring identical re-production including sample. It includes advance electric system to
generate market for cutting fabric. Confirming and locally as well as globally accepted a
factories and labor laws a vision and invention. Four H Group graded a height of ethical and
group practices for its nearly 20,000 employees and staff members. It maintains a very high
order of industry relation. Four H provide it’s vigorous and environment of security. Four H
Group provides hygienic canteen and supreme medical facilities, care for maternity privilege &
childcare for the working of children. And of course it provides other compensation and
remittance.
Four H offer an atmosphere, face and comfortable to successfully fight occupation, hazard the
situation like fire incident operational skills and share common attitude towards right
rationality and productivity, the optimistic capacitate laboratory to conduct highly calibrated
test protocol to ensure unlimited standard of dyeing quality its buyer seek for. It has testing
facilities like spectrophotometer, rubbing, fastness, both dry and wet condition, perspiration,
color and washing fastness, stretch and recovering of spandex fabric etc. It has input water
treatment facility a testimony to Four H is share responsibility to the environment all of its
dyeing refuses are properly challenges into this 100 Quebec meter of per hour capacity. A few
an treatment plan of most contemporary technology with large dehydration it clam a view end
chemically and biologically before realizing that back into the ecosystem in a safe manner.

Human Resource of Four H Group

Department Manpower
Head Office 814
Sewing Factory 21,097
Supporting Factory 1,421
Warehouse 421
Security 637
Others 55
Total 24,445

On the way to itself judging the friendly nest to the workers government has awarded
4H best knitwear factory in Bangladesh export trophy winner GOLD and SILVER in
05-06/06-07/08-09 and Govt. certified as most complaint company with WRAPS
accredited, Sedex registered, Organic certified. Four H Group is fully vertical to fit the
export demand of using highly sophisticated machine of world’s most luxurious and
demanding brands. It is manufacturing all righting of knit fabric such as single and
double jersey, cotton elastane, rib cotton elastane, interlock, thermal and many more .

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 Four H Dyeing & Printing Ltd. (Yarn Dyeing Unit)
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Four H GROUP has a fully equipped environment friendly dyeing factory. Four H dyes all of its
fabric by itself. This factory having more than 400 thousand square feet of working space has
more updated and mostly Germany origin state of the earth machinery lines in store split,
stander, compactor as well as squeezer. Four H dyes & finish tubular as well as open width.
Presently about 30 tons of knit fabric being dyed here per day and it’s now a way to having
daily capacity of 40 tons the end of the year.Its dyeing unit is equipped to offer overstep
solution. Four H has established to his own plant with its international standard packing
materials such as corrugated carton, polybag, gum tape and the line. It produces other
accessories elastic, label and many more. Four H is capable in printing in all specification
ranging from flat screen development in 10-12 color it can print about 7500 garment in
placement and 3000 KG of knitted fabric every day.

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Being certified of Oeko-tex standard 100 product class 1 and as well as maintain global organic
textile standard. Four H pride on carried forward its mission of garment carrying out of
strangling making quality of fabric yard by yard and using marker generated by computerized
marking system . Four H address is cutting rule salutation subsequently molding of fabric and
other staffing materials follows. There after line operation start a swing floor are designed with
highly configure with factory specification and here 216 lines of globally reputed brand sewing
machine. Having most contemporary support devices and other special feature to an able Four
H of making any kind of underwear and intimate wear are extremely restricted CT PAT
designated.

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Invariable heating in quality bottom line being back here complain to desired code of conduct
accordingly export cargo are shipped under a constant surveillance. Four H has a very long
wide and solid client at portfolio to EUROPE, USA, CANADA, and the Middle East, Japan.
Registering a nearly average export growth of over 15% since inception, Four H has reported
export USD $232 million in the year of 2019.

Business Strategy of the Group is given below:

● Focus on more fashionable and Athletic apparels to increase our working dimension.
● Research and Development team which help us for garment product and other's trims
advance development.
● Our aim is to presence ourselves in a global garment manufacturing arena. Started
operation in Myanmar and Ethiopia is soon to start.
● We will work to make our production plant as green from existing yellow.
● 20-25% capacity to be increased every year, up to next five year.
● Fast React software to be launched in 2018.
● In order to achieving the goal we are encouraging people's ownership, empowerment
and working under team structure.

Upcoming Project of Four H Group

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Yes, the finest raw material and accessories, entering quality in diverse, competitive price, on
time delivery, environmental promises, and employee friendliness as well. The profession of
dynamic professionalism led by the leader providing through commitment and performing had
given Four H a very powerful inner happening ultimate growing. Remaining in a full front
meeting at the driver stage and standard.

Compliance of the Group

The factories of the Group operates in full compliance with the applicable rules, laws and
regulations of our country including those relations to labor health, hygiene safety and
environment. It also follows international labor laws and UN regulations.

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Four H Dyeing & Printing Ltd. (Yarn Dyeing Unit)
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Summary of Sister Concern

Establish
Sl. Sister Concern Legal Entity ed Year Nature of Business Daily Capacity
Carton # 7,000 pcs,
Poly # 1,00,000 Pcs.,
Label # 1,50,000pcs.,
Islam Pack Private Limited Garments Duplex Board #
1 Accessoriers Ltd Company 2009 Accessories 50,000Pcs.
Private Limited 6630 Dzn, (24 Line,
2 Belamy Textile Ltd Company 2007 Garments double shift)
Private Limited 3258 Dzn, (8 Line,
3 Charm Fashion Company 2014 Garments double shift)
Private Limited 5192 Dzn., (17 Line,
4 Avenger Textile Ltd Company 2013 Garments double shift)
Private Limited 9615 Dzn., (24 Line,
5 Four H Lingerie Ltd Company 2006 Garments double shift)
Private Limited 5000 Dzn., (12 Line,
6 Divine Design Ltd Company 2009 Garments double shift)
Private Limited 8300 Dzn., (23 Line,
7 Divine Intimates Ltd Company 2015 Garments double shift)
Private Limited 5000 Dzn., (13 Line,
8 Bagetex Apparels Ltd Company 2009 Garments double shift)
Private Limited 10808 Dzn.,(25 Line,
9 Nafisa Apparels Ltd Company 2009 Garments double shift)

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Private Limited 12500 Dzn., (26 Line,

10 Four H Apparels Ltd Company 2009 Garments double shift)
Private Limited
11 Four H Fashions Ltd Company 2003 Buying House & H/O
Knitting # 32 MT,
Dyeing & Finishing #
Four H Dyeing & Private Limited 30 MT, Printing # 30
12 printing Ltd Company 2009 Textile MT
Intimates Elastic Private Limited Garments
13 Industries Ltd Company 2007 Accessories 1500 Gyds.

Financial Highlights of Sister Concern

Sl. Sister Concern Sector Sales Asset Equity Loan Net Profit
Garments
Islam Pack Accessorie
1 Accessoriers Ltd s 258.4 326.0 341.3 0.0 43.8
2 Belamy Textile Ltd Garments 1,138.6 100.7 472.3 30.5 63.2
3 Charm Fashion Garments 1,571.0 213.6 621.6 19.6 204.9
4 Avenger Textile Ltd Garments 277.9 244.0 80.4 0.0 23.6
5 Four H Lingerie Ltd Garments 2,396.3 172.0 885.8 58.1 287.1
6 Divine Design Ltd Garments 1,175.2 359.4 333.4 124.1 51.0
7 Divine Intimates Ltd Garments 504.4 272.0 29.9 117.9 15.1
8 Bagetex Apparels Ltd Garments 957.8 44.9 969.4 48.6 58.3
9 Nafisa Apparels Ltd Garments 461.6 261.3 130.7 51.2 24.3
10 Four H Apparels Ltd Garments 1,092.0 204.7 98.3 69.2 50.7
Buying
house &
11 Four H Fashions Ltd H/O 11,473.3 389.9 3,574.4 479.3 691.3
Four H Dyeing &
12 printing Ltd Textile 4,651.6 2,299.9 2,267.0 702.7 343.2
Garments
Intimates Elastic Accessorie
13 Industries Ltd s 108.9 7.5 46.6 0.0 8.1
Total 26,066.8 4,895.9 9,851.1 1,700.9 1,864.4

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Directors of the Group

Sl. Director Designation Age Education
Managing
1 Gauhar Siraj Jamil Director 54 Yrs Post Graduation
2 Shahara Chowdhury Chairman 46 Yrs Post Graduation
3 Md. Hassan Director 53 Yrs Post Graduation
4 Kamrul Huda Director 51 Yrs Post Graduation

5.2. Shareholding Position

Shareholders of the Company

Relations
hip with
Designati Key
Sl. Name on Age Education Sponsor Percent
B. A.
Managing (Hons.),
1 Mr. Gauhar Siraj Jamil Director 54 Yrs M.A Self 6,250 31.3%
Mrs. Shahara Business
2 Chowdhury Chairman 46 Yrs B. A. Partner 6,250 31.3%
B.S.S
(Hons.) Business
3 Mr. Md. Kamrul Huda Director 51 Yrs M.S.S Partner 3,750 18.8%

4 Mr. Md. Hassan Director 53 Yrs B.Com. Business 3,750 18.8%

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Partner
Total 20,000 100.0%

CVs of the Shareholders

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5.3. Organisation and Staffing

Key Management Personnel

Area of Professional
Sl. Name Designation Operation Experience
1 Mr. A. M Alamgir General Manager Merchandising 28 Yrs
2 Mr. M.A.G Hannan Deputy General Manager Merchandising 26 Yrs
3 Mr. A.K. M Helal-Uz-Zaman Deputy General Manager Production 26 Yrs
Accounts &
4 Mr. Sahadat Uddin Md Sa'dat Deputy General Manager Finance 23 Yrs
5 Mr. Shahidul Islam Assistant General Manager Merchandising 23 Yrs
6 Mr. Feroz Haider Assistant General Manager Merchandising 23 Yrs
7 Mr. Anwarul Kabir Assistant General Manager Merchandising 23 Yrs

8 Ms. Dilruba Meher Assistant General Manager Merchandising 23 Yrs

Organizational Chart

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Required Manpower
After successful commercial operation, the Factory would require roughly 1,500 individual
manpower in different categories. The major group of manpower is factory labour.

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6. Technology Consideration

Chapter Highlight
● In broad category, the project has after four tire production process: soft winding,
batching, hydro extraction and dryer.
● Total power required 1500 KVA.
● It will maintain compliance and due diligence.

6.1. Production Process

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6.2. Safety Requirement

The project will buy necessary items for the workers. For this purpose the project will purchase
required quantity of musk, gloves, show., etc. for the production workers. For safety from fire
the project will arrange sufficient fire fighting equipment which will he stored in such places
from which the workers will he able to use those easily.
The Project will produce sophisticated product line and it will serve to a reputed clients group.
To maintain compliance, due diligence and ensuring the sustainability it would require BDT
15.0 million. This amount of money will be utilized for Fire Hydrant, Detection and Protection
and build Lightning Protection System of 17,030 sq ft.

6.3. Required Manpower

To run the factory it would require a total 254 individuals in different categories. The required
manpower list in given below:

Required Manpower
No of Salary in Total Salary
Sl No Department Designation Employee BDT in BDT
1 Yarn Dyeing Manager 1 120,000 120,000
2 Yarn Dyeing Assistant Manager 1 90,000 90,000
3 Yarn Dyeing Executive 4 60,000 240,000

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4 Yarn Dyeing Operator 60 22,000 1,320,000

5 Yarn Dyeing Loader/Asstt. Operator 60 18,000 1,080,000
6 Yarn Dyeing Lab 10 45,000 450,000
7 Yarn Dyeing Batch 6 25,000 150,000
8 Yarn Dyeing Wet Engineer 4 60,000 240,000
9 Yarn Dyeing Electrical Engineer 4 60,000 240,000
10 Yarn Dyeing Mechanical Engineer 4 60,000 240,000
11 Crane Crane operator 4 22,000 88,000
12 Soft Winding Operator 36 22,000 792,000
13 Soft Winding Asstt. Operator 36 18,000 648,000
14 Hard Winding Operator 4 22,000 88,000
15 Hard Winding Asstt. Operator 4 18,000 72,000
16 Dryer Operator 4 22,000 88,000
17 Dryer Asstt. Operator 4 18,000 72,000
18 Hydro Extractor Operator 4 22,000 88,000
19 Hydro Extractor Asstt. Operator 4 18,000 72,000
Total 254 6,178,000

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7. Sector Analysis

7.1. Review and Outlook, 2020 Bangladesh Garments and Textile Industry2

Introduction
2020 is going to be a crucial year for the Bangladesh garments and textile industry. As the
industry is going through a transformation phase some major organizational changes are on
the card in the upcoming days. Starting in the late 1970s, expanding heavily in the 1980s and
finally booming in the 1990s, Ready Made Garments industry has created a success story for
Bangladesh. Turning up as a gigantic industry within a short span of time, RMG sector has
become the backbone to the economy of the country as the largest source of export earnings
(84%) and employment (20 million). Bangladesh RMG sector has a goal to achieve 50 Billion
export targets by year 2021 that will cover 8-10% of total apparel export of the world market.
Currently the country holds approximately, 7% of that with 34-billion-dollar export. However,
at current growth pace the target is not possible to achieve. This article tries to put light on the
current scenario of the garments and textile industry of Bangladesh and portray the outlook in
2020.

Sector Profile Analysis

The last FY can be characterized by negative to sluggish growth of exports. In fact, first time in
the history export growth registered negative growth for four consecutive months on the trot.
In December, 19 the growth raised its nose up but very slightly unlike the previous years.
However, according to World Bank and other economic models Bangladesh is forecasted to
sustain in 2020 and the garments exports are also forecasted to grow positively.

2
Maeen Md. Khairul Akter, Managing Editor, Textile Focus

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The sector profile shows that the total no. of garments factories registered under BGMEA is
4621 now. If we analyze the trend of change in the no of factories from chart-1, the number of
new factories being added every year is decreasing. There was a big drop in the number of
industries in 2013-14 when accord and alliance came in to action. After that every year the on
average around 75 new industries being added in total. Furthermore, we have seen that around
200 industries has been shut down in the recent times which indicated the newly added
industries fully compliance and they are here to stay. So, though the number of new industries
every year is decreasing but the quality of the newly launched industries are far better taking
Bangladesh in the next level as a role model of green industries and sustainable practices.
Overall, the total number of LEED-certified garment factories in Bangladesh is 90 now,
including the 24 platinum rated buildings, according to the USGBC. Although the buyers are

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not paying any extra money for green buildings, such initiative still helps a lot in branding and it
is necessary for our own survival.

Another important thing to notice is the number of workers being stagnant at 4 million for a
few years now working directly in garments industries according to BGMEA. It indicates that
the total number of workers per production unit is not increasing rather may be in the
decreasing side. One explanation can be adoption of some semi-automatic processes in the
production line resulting in less manpower requirement. Overall, this is not a bad thing for the
industry and also the workers as they are being paid six times more than a decade before.

Another major thing to look for is the value addition. Value addition is increasing day by day as
industries are becoming more self-sufficient in backward linkage industries specially in knit
sector. in woven sector the industry is still dependent on foreign sources for fabrics which
reduces the value addition scopes. Matter of hope is that the denim sector is rising heavily of
late. According to major denim manufacturers of the country, they used to produce denim
trousers for $5.50 and $7.0 a piece earlier, but now the price range has gone up to $10 to $11.
Bangladesh exports denim goods worth more than $3 billion a year and has already overtaken
China to become the top denim supplier to the EU. The production capacity of the 31 denim
mills in Bangladesh is more than 40 million yards a month against a demand for nearly 70
million yards. The rest of the demand is met through imports from countries like China, India,
Pakistan, and Turkey. According to manufacturers, new technologies used in washing and
polishing as well as the increasing use of finer fabrics and design are allowing Bangladesh to
add more value to denim items.

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According to major denim manufacturers of the country, they used to produce denim
trousers for $5.50 and $7.0 a piece earlier, but now the price range has gone up to
$10 to $11 resulting in greater value addition.

Analysis of the table-2 depicts cluster based product’s export growth this year. It can be seen
that both in knit and woven segment articles made from made-made and synthetic fibre have
registered huge growth. Woman’s or girls’ anoraks, wind-cheaters, etc. of man-made fibers
recorded the highest growth of 44%. Even in the knit segment products like jerseys and
pullovers made of man-made fibers are the top with 29.25% growth. In contrast, some cotton
based articles registered very low growth. Specially men’s and women’s trousers, blouses and
pullovers made from cotton and other materials (than man-made and synthetic) has recorded
negative growth. This analysis clearly indicates buyers’ transformation from cotton based to
non-cotton based products in the recent past. And it can be surely forecasted that the trend
will be the same in the upcoming years. One big reason may be the innovations in man-made
and synthetic fibres and products; today non-cotton products are as much (or in some cases
more) comfortable as cotton based products. Also today consumers are more aware about the
hazardous environmental impacts of cotton cultivation. Another negative point about the
synthetic products was concerned with its non-biodegradability. This is a crucial point in the
future business decisions for the entrepreneurs as most of the back ward linkage industries are
cotton based. So, if the trend continuous we will be again dependent on foreign products and
lose huge scope of value addition.

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Analyzing further more from table-3, it can be seen that exports to the traditional market has
been stable in the FY 2018-19 but in the last 6 months there is a negative growth. Canada and
the non-traditional markets registered highest growth at 22.44% and 21.77% respectively in
the last FY 2018-19. But even these markets recorded a negative growth in the last six months
at -12.18% and -5.13% respectively. It will be very difficult to off-set this negative row may be
due to the corona virus epidemic in China. Many export orders will be halted or delayed due to
a seize in imports from China.

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In the EU market Hungary, Cyprus, Portugal, Malta and Sweden registered highest growth,
whereas the bigger markets like Germany, UKI, Spain, France and Italy registered very low
growth. In the non-traditional market India, China, Japan, South Korea and South Africa
recorded the highest growths. In this market segment only Turkey registered negative growth
at -27.02% and another potential market for Bangladeshi apparel Russia registered 14.17%
growth. so, overall indication from this analysis is that, more market innovation is required to
sustain the export market as the regular markets like EU and USA are shrinking day by day
mostly due to their near shoring and even on shoring business strategies taken off late.

Labor Force and Skill-base Analysis

Human resource has been always vital issue in the continuous development of the textile and
apparel sector. In the last decade the wage of the garments workers has been increased six
folds. Furthermore, the business operation costs in last decade has also increased 35-40%. In
contrast, according to different authentic sources, the average price from the buyers has been
decreased by 3-4%. So allover we have lost 35-40% price competitiveness in the market. In this
circumstances, the skill profile of the labor force has become a vital issue. The industry now
cannot afford unskilled human force in the industries. However, in terms of labor wage
Bangladesh is still a competitive place for the garments buyers (reference table-4).

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Manufacturing garments is typically a low-skilled job, so garment importers might not be

particularly concerned about whether a workforce is skilled. However, skilled labor is
becoming more important as production operations are demanding better performances.
Specially in the managerial positions proper skill increases the efficiency and productivity of a
factory, which shortens the lead time. So when productivity and the quality of education is
coupled with wage Bangladesh tends to lag behind the competitors as the education and
training infrastructure is still in the primary levels (reference chart-2).

One research project has been taken by the ministry of textiles and jute, government of
Bangladesh to forecast the need of textile and garments professionals in the upcoming years in

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the Bangladesh market. They have depicted that the industry will need around 25000
professionals in the upcoming years but there was no study on what are the core skills that the
professionals have to acquire to sustain the labor market. So, it is a high time for our country to
heavily invest in skill development by designing appropriate training and education programs
throughout the institutions.

SWOT
From the above mentioned analysis and Textile Focus research a SWOT analysis of the
Bangladesh textile and garments industry for the year 2020 and onward is outlined below.

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Conclusion

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Bangladesh textile and apparel industry is standing at a cross road facing difficult challenges.
But this is also true that opportunity resides at the opposite of the challenges. It’s a high time
for the industry take appropriate steps to step over the hurdles and avail the opportunities in
offering in plenty in the global market. Still Bangladesh is regarded as one of the best choices
for most of the buyers as safe and secure source of ready made garments. And as our capability
of designing and product development improves industry will start making more value added
products, the trend of which is already evident. Today Bangladesh is the home of highest
number of green factories which adds to our positive image as a sustainable partner of global
business. And most importantly, non-compliance factories are gradually pushed out of the
market which is also a good sign in the longer run. We need better factories, not a lot of
factories. This comprehensive study of the review and outlook has been aimed to help our
valued readers to have a proper glimpse of the industry conveniently so that it helps them
visualizing their future plans. Textile Focus team hopes for the best and continues to work as a
sustainable development partner of the garments and textile industry hand to hand.

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8. Financial Projection

Chapter Highlight
● The Project has 10 years operating life.
● Operating period is considered 300 days.
● Long-term loan tenure is 5 years.
● IDCP is 18 months.
● Cost of project loan and working capital loan is 9.0% and 9.0%.
● At 100% capacity utilization, the total projected production mix is BDT 1,531.9
million.
● At 100% capacity utilization, the total projected consumption mix is BDT 447.0
million.

Operative Life of the Project

The Project is considered 10 years operating life without major capital investment and disposal
of fixed assets.

Financial Assumption
Particular Detail
Operating Period 300 Day
Inventory Conversion Period 94 Day
Receivable Collection Period 7 Day
Payable Deferral Period 0 Day
Loan-term Loan Tenure 5.0 Year
Interest During Construction Period 18 Month
Cost of Debt- Project 9.0%
Cost of Debt- Working Capital 9.0%
Average Income Tax Rate 15.0%
Average Cash Dividend Rate 5.0%

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Cost of Project
Particular Amount Percent
Land and Land Development 230.5 9.0%
Building and Civil Construction 1,111.2 43.2%
Imported Machinery 613.3 23.8%
Electrical Cost 149.9 5.8%
Mechanical Cost 122.9 4.8%
Furniture and Fixture 30.0 1.2%
Vehicle and Transport 50.0 1.9%
Fire Hydrant & Equipment 15.0 0.6%
Decoration 30.0 1.2%
Contingency 0.0 0.0%
IDCP 222.3 8.6%
Project Cost Excluding IDCP 2,352.8 91.4%
Project Cost Including IDCP 2,575.1 100.0%

Sources of Funding
Particular Amount Percent
Project Loan 1,647.0 64.0%
IDCP 222.3 8.6%
Shareholders' Equity 705.8 27.4%
Shareholders' Loan 0.0 0.0%
Sources of Funding 2,575.1 100.0%
Funded Working Capital Loan 98.1
Funded Working Capital Equity 32.7

Production Mix
Per Unit
Sales Annual
Daily Annual Price Sales
Products Unit Capacity Capacity (BDT) (BDT) Percent
Yarn Dyeing For Knitted Fabric KG 12,000 3,600,000 213 765.0 49.9%
Nylon Dyeing for Elastic KG 500 150,000 255 38.3 2.5%
Polyester Dyeing for Elastic KG 1,000 300,000 213 63.8 4.2%
Cotton Plus Polyester Dyeing for
Sewing Thread KG 3,500 1,050,000 633 664.9 43.4%
Total 17,000 5,100,000 1,531.9 100.00%

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9. Projected Financial Statement

Chapter Highlight
● In the first five years projected sales are BDT 1,063.5 million to BDT 1,378.1 million.
● Net Profit is ranged BDT 191.5 million to BDT 470.7 million.
● In the first year, total Balance Sheet size is projected BDT 2,537.4 million of which
92.9% fixed asset and 7.1% current asset.
● In the first year, Shareholders' Equity is projected BDT 880.4 million.

Income Statement
Particular 2022 2023 2024 2025 2026
Sales 1,063.5 1,148.2 1,224.9 1,301.5 1,378.1
Cost of Goods Sold 654.1 681.6 711.1 740.7 770.3
Gross Profit 409.4 466.6 513.8 560.8 607.8
-Administrative Expense 16.1 16.1 16.2 16.2 16.3
-Selling Expense 0.0 0.0 0.0 0.0 0.0
Operating Expense 16.1 16.1 16.2 16.2 16.3
Net Operating Profit 393.3 450.5 497.6 544.6 591.6
Financial Expense 167.9 139.7 108.8 74.9 37.8
Pre-tax Profit 225.4 310.8 388.9 469.7 553.8
Income Tax Expense 33.8 46.6 58.3 70.5 83.1
Net Profit 191.5 264.2 330.5 399.3 470.7

Project Profile 65
 Four H Dyeing & Printing Ltd. (Yarn Dyeing Unit)
Daily 17 MT Yarn Dyeing

Balance Sheet
Constructi
Particular on Period 2022 2023 2024 2025 2026
Asset:
Property, Plant and
Equipment, Net 2,575.1 2,356.5 2,137.9 1,919.2 1,700.6 1,481.9
Non-current Asset 2,575.1 2,356.5 2,137.9 1,919.2 1,700.6 1,481.9

Inventory 77.2 93.7 99.5 105.3 111.2 117.0

Accounts Receivable 0.0 20.4 22.0 23.5 25.0 26.4
Store and Spares 0.0 9.3 9.3 9.3 9.4 9.4
Cash and Cash Equivalents 0.0 57.5 163.5 304.5 479.8 688.7
Current Asset 77.2 180.9 294.3 442.7 625.3 841.6
Total Asset 2,652.3 2,537.4 2,432.2 2,361.9 2,325.9 2,323.5

Equity and Liability:

Share Capital 725.1 725.1 725.1 725.1 725.1 725.1
Retained Earnings 0.0 155.3 383.2 677.5 1,040.5 1,474.9
Shareholders' Equity 725.1 880.4 1,108.3 1,402.6 1,765.6 2,200.0

Long-term Project Loan 1,869.3 1,558.9 1,219.5 848.6 443.2 0.0

Shareholders' Loan 0.0 0.0 0.0 0.0 0.0 0.0
Non-current Liability 1,869.3 1,558.9 1,219.6 848.6 443.2 0.0

Short-term Loan 57.9 98.1 104.3 110.7 117.1 123.5

Accounts Payable 0.0 0.0 0.0 0.0 0.0 0.0
Current Liability 57.9 98.1 104.3 110.7 117.1 123.5
Total Equity and Liability 2,652.3 2,537.4 2,432.2 2,361.9 2,325.9 2,323.5

Project Profile 66
 Four H Dyeing & Printing Ltd. (Yarn Dyeing Unit)
Daily 17 MT Yarn Dyeing

Cash Flow Statement

Constructi
Particular on Period 2022 2023 2024 2025 2026
Earnings Before Interest and
Tax 0.0 393.3 450.5 497.6 544.6 591.6
Operating Activities:
Depreciation and
Amortization 0.0 218.6 218.6 218.6 218.6 218.6
Decrease (Increase) in
Inventory -77.2 -16.5 -5.8 -5.9 -5.9 -5.9
Decrease (Increase) in
Accounts Receivable 0.0 -20.4 -1.6 -1.5 -1.5 -1.5
Decrease (Increase) in Store
and Spares 0.0 -9.3 0.0 0.0 0.0 0.0
Increase (Decrease) in
Accounts Payable 0.0 0.0 0.0 0.0 0.0 0.0
Financial Expense 0.0 -167.9 -139.7 -108.8 -74.9 -37.8
Income Tax Expense 0.0 -33.8 -46.6 -58.3 -70.5 -83.1
Net Cash Inflow (Outflow)
from Operating Activities -77.2 364.0 475.4 541.8 610.5 682.0

Investing Activities:
Capital Expenditure -2,575.1 0.0 0.0 0.0 0.0 0.0
Net Cash Inflow (Outflow)
from Investing Activities -2,575.1 0.0 0.0 0.0 0.0 0.0

Financing Activities:
Issuance of Shares 725.1 0.0 0.0 0.0 0.0 0.0
Increase (Decrease) in
Long-term Loan 1,869.3 -310.4 -339.3 -370.9 -405.4 -443.2
Increase (Decrease) in
Shareholders' Loan 0.0 0.0 0.0 0.0 0.0 0.0
Increase (Decrease) in
Short-term Loan 57.9 40.2 6.2 6.4 6.4 6.4
Cash Dividend 0.0 -36.3 -36.3 -36.3 -36.3 -36.3
Net Cash Inflow (Outflow)
from Financing Activities 2,652.3 -306.5 -369.4 -400.8 -435.3 -473.1
Net Increase (Decrease) in
Cash 0.0 57.5 106.0 141.0 175.2 208.9
Cash, Beginning Balance 0.0 0.0 57.5 163.5 304.5 479.8

Project Profile 67
 Four H Dyeing & Printing Ltd. (Yarn Dyeing Unit)
Daily 17 MT Yarn Dyeing

Cash, Ending Balance 0.0 57.5 163.5 304.5 479.8 688.7

Equity Statement
Particular 2022 2023 2024 2025 2026
Beginning of The Year 725.1 880.4 1,108.3 1,402.6 1,765.6
Net Profit 191.5 264.2 330.5 399.3 470.7
Issuance of Share 0.0 0.0 0.0 0.0 0.0
Cash Dividend 36.3 36.3 36.3 36.3 36.3
Ending of The Year 880.4 1,108.3 1,402.6 1,765.6 2,200.0

Project Profile 68
 Four H Dyeing & Printing Ltd. (Yarn Dyeing Unit)
Daily 17 MT Yarn Dyeing

10. Working Capital Requirement

Chapter Highlight
● Total required working capital loan is estimated BDT 98.1 million.
● Shareholders will also participate in working capital if required.
● Non-funded working required is BDT 77.2 million for raw material importing.

Working Capital Assessment

Particular 2022 2023 2024 2025 2026
Raw Material- Inventory 77.2 82.7 88.2 93.7 99.2
Work In Progress- Inventory 1.8 1.9 1.9 2.0 2.1
Finished Goods- Inventory 5.4 5.6 5.8 6.1 6.3
Store and Spares 9.3 9.3 9.3 9.4 9.4
Total Inventory 93.7 99.5 105.3 111.2 117.0
Accounts Receivable 20.4 22.0 23.5 25.0 26.4
Labor 11.0 11.5 12.3 13.1 13.9
Rent 0.0 0.0 0.0 0.0 0.0
Utility 5.7 6.0 6.5 6.9 7.3
Current Asset Excluding Cash 130.8 139.1 147.6 156.1 164.6
Accounts Payable 0.0 0.0 0.0 0.0 0.0
Required Funded Working Capital 130.8 139.1 147.6 156.1 164.6
Non-funded Working Capital Loan 77.2 82.7 88.2 93.7 99.2
Funded Working Capital Loan 98.1 104.3 110.7 117.1 123.5
Funded Working Capital Equity 32.7 34.8 36.9 39.0 41.2
Required Funded Working Capital
% of Sales 0.1 0.1 0.1 0.1 0.1

Project Profile 69
 Four H Dyeing & Printing Ltd. (Yarn Dyeing Unit)
Daily 17 MT Yarn Dyeing

Working Capital Assumption

Particular Detail
Operating Period 300 Day
Raw Material Period 90 Day
Work In Progress Period 1 Day
Finished Goods Period 3 Day
Receivable Collection Period 7 Day
Payable Deferral Period 0 Day
Labor 60 Day
Rent 60 Day
Utility 60 Day
Store and Spares 90 Day
Usage of Working Capital 100.0%
Funded Loan % of Required Working Capital 75.0%
Non-funded Loan % of Raw Material 100.0%

Project Profile 70
 Four H Dyeing & Printing Ltd. (Yarn Dyeing Unit)
Daily 17 MT Yarn Dyeing

11. Other Statements

Chapter Highlight
● Total Gross Block valued BDT 2,575.1 million.
● Annual debt service valued BDT 480.1 million.
● Major debt service is come from long-term loan service around 97.6%.
● COGS to Sales is 61.5%.
● Out of manufacturing cost 47.4% raw material, 10.0% labor and 42.6% factory
overhead.
● Total long-term loan will be paid off in 20 quarterly installments in 5 years.

Non-current Asset Schedule

Particular 2022 2023 2024 2025 2026
Property, Plant and Equipment,
Gross 2,575.1 2,356.5 2,137.9 1,919.2 1,700.6
Capital Expenditure 0.0 0.0 0.0 0.0 0.0
Depreciation and Amortization 218.6 218.6 218.6 218.6 218.6
Accumulated Depreciation and
Amortization 218.6 437.3 655.9 874.6 1,093.2
Property, Plant and Equipment,
Net 2,356.5 2,137.9 1,919.2 1,700.6 1,481.9

Project Profile 71
 Four H Dyeing & Printing Ltd. (Yarn Dyeing Unit)
Daily 17 MT Yarn Dyeing

Cost of Goods Sold

Particular 2022 2023 2024 2025 2026
Purchased Raw Material
Inventory 312.9 335.2 357.6 379.9 402.3
Opening Raw Material Inventory 77.2 77.2 82.7 88.2 93.7
Raw Material Available for Use 390.0 412.4 440.3 468.1 496.0
Closing Raw Material Inventory 77.2 82.7 88.2 93.7 99.2
Raw Material Consumed 312.9 329.7 352.1 374.4 396.8
Labor 65.7 69.2 73.9 78.6 83.3
Factory Overhead 281.0 282.9 285.4 287.9 290.5
Manufacturing Cost 659.6 681.9 711.4 741.0 770.6
Opening Work In Progress
Inventory 1.8 1.8 1.9 1.9 2.0
Cost of Goods Available for
Manufacturing 661.4 683.7 713.3 743.0 772.6
Closing Work In Progress
Inventory 1.8 1.9 1.9 2.0 2.1
Cost of Goods Manufactured 659.6 681.8 711.4 740.9 770.5
Opening Finished Goods
Inventory 0.0 5.4 5.6 5.8 6.1
Cost of Goods Available for Sales 659.6 687.2 717.0 746.8 776.6
Closing Finished Goods Inventory 5.4 5.6 5.8 6.1 6.3
Cost of Goods Sold 654.1 681.6 711.1 740.7 770.3

Project Profile 72
 Four H Dyeing & Printing Ltd. (Yarn Dyeing Unit)
Daily 17 MT Yarn Dyeing

Rate of Depreciation
Depreciation
&
Amortization Economic
Particular Rate Life
Land and Land Development 0.0% Infinity
Building and Civil Construction 5.0% 20.0 Year
Imported Machinery 10.0% 10.0 Year
Electrical Cost 13.3% 7.5 Year
Mechanical Cost 13.3% 7.5 Year
Furniture and Fixture 15.0% 6.7 Year
Vehicle and Transport 15.0% 6.7 Year
Fire Hydrant & Equipment 20.0% 5.0 Year
Decoration 20.0% 5.0 Year
Contingency 20.0% 5.0 Year
IDCP 20.0% 5.0 Year

Project Profile 73
 Four H Dyeing & Printing Ltd. (Yarn Dyeing Unit)
Daily 17 MT Yarn Dyeing

Long-term Loan Schedule

Yr |
Installment | No. of Interest Principal Installme Annual Annual
Month Month Rate Residue Principal Interest nt Principal Interest
Yr-01 | 1 | Mar 21 9.0% 1,869.3 75.0 42.1 117.1
Yr-01 | 2 | Jun 24 9.0% 1,794.3 76.7 40.4 117.1
Yr-01 | 3 | Sep 27 9.0% 1,717.5 78.5 38.6 117.1
Yr-01 | 4 | Dec 30 9.0% 1,639.1 80.2 36.9 117.1 310.4 158.0
Yr-02 | 5 | Mar 33 9.0% 1,558.9 82.0 35.1 117.1
Yr-02 | 6 | Jun 36 9.0% 1,476.8 83.9 33.2 117.1
Yr-02 | 7 | Sep 39 9.0% 1,393.0 85.8 31.3 117.1
Yr-02 | 8 | Dec 42 9.0% 1,307.2 87.7 29.4 117.1 339.3 129.1
Yr-03 | 9 | Mar 45 9.0% 1,219.5 89.7 27.4 117.1
Yr-03 | 10 | Jun 48 9.0% 1,129.9 91.7 25.4 117.1
Yr-03 | 11 | Sep 51 9.0% 1,038.2 93.7 23.4 117.1
Yr-03 | 12 | Dec 54 9.0% 944.5 95.8 21.3 117.1 370.9 97.5
Yr-04 | 13 | Mar 57 9.0% 848.6 98.0 19.1 117.1
Yr-04 | 14 | Jun 60 9.0% 750.6 100.2 16.9 117.1
Yr-04 | 15 | Sep 63 9.0% 650.4 102.5 14.6 117.1
Yr-04 | 16 | Dec 66 9.0% 547.9 104.8 12.3 117.1 405.4 62.9
Yr-05 | 17 | Mar 69 9.0% 443.2 107.1 10.0 117.1
Yr-05 | 18 | Jun 72 9.0% 336.1 109.5 7.6 117.1
Yr-05 | 19 | Sep 75 9.0% 226.5 112.0 5.1 117.1
Yr-05 | 20 | Dec 78 9.0% 114.5 114.5 2.6 117.1 443.2 25.2

Debt Service Composition

Particular Average Percent
Term-loan Principal 373.9 77.9%
Shareholder's Loan Principal 0.0 0.0%
Term-loan Interest 94.5 19.7%
WC Interest 10.3 2.1%
WC Commission 1.4 0.3%
Debt Service 480.1 100.0%

Project Profile 74
 Four H Dyeing & Printing Ltd. (Yarn Dyeing Unit)
Daily 17 MT Yarn Dyeing

12. Calculation Sheet

Chapter Highlight
● NPV of the Project is BDT 1,224.7 million.
● IRR of the Project is 19.3%.
● Payback Period is 4.6 Year.
● Benefit to Cost Ratio is 2.5 X.
● Break-even Capacity Utilization is 59.7%.

Cash Flow of The Project

Const
ructio
n
Particular Period 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
Cash Inflow -77.2 364.0 475.4 541.8 610.5 682.0 704.6 704.5 704.4 704.3 704.2
2,352.
Cash Outflow 8 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
-2,430.
Net Cash Flow 0 364.0 475.4 541.8 610.5 682.0 704.6 704.5 704.4 704.3 704.2
Cumulative -2,430. -2,066. -1,590. -1,048. 1,652. 2,357. 3,061. 3,765.
Net Cash Flow 0 0 6 8 -438.2 243.8 948.4 9 4 6 8

Project Viability
Particular Result
NPV 1,224.7
IRR 19.3%
Payback Period 4.6 Year
Benefit to Cost Ratio 2.5 X
Daily Break-even Point in Unit 10,157
Annual Break-even Point in Amount (Million) 914.7
Break-even Capacity Utilization 59.7%

Project Profile 75
 Four H Dyeing & Printing Ltd. (Yarn Dyeing Unit)
Daily 17 MT Yarn Dyeing

Sensitivity Analysis (If Sales drop by 10%)

Particular Average 2022 2023 2024 2025 2026
Capacity Utilization 73% 63% 68% 73% 78% 83%
Sales 1,116.2 957.2 1,041.0 1,117.7 1,194.3 1,270.9
Net Profit 276.1 136.7 208.9 275.3 344.0 415.4
Net Cash Flow 82.5 2.1 50.9 85.9 120.1 153.8
Cash Available for Debt
Service or EBITDA 648.3 546.5 603.2 650.3 697.3 744.3
Debt Service 478.8 477.5 478.1 478.8 479.4 480.1
Total Asset 2,220.3 2,471.8 2,311.5 2,186.0 2,094.8 2,037.3
Gross Profit Margin 39.7% 35.9% 38.5% 40.1% 41.4% 42.6%
EBIT Margin 38.3% 34.3% 36.9% 38.6% 40.1% 41.4%
EBITDA Margin 58.0% 57.1% 57.9% 58.2% 58.4% 58.6%
Pre-tax Profit Margin 28.3% 16.8% 23.6% 29.0% 33.9% 38.5%
Net Profit Margin 24.1% 14.3% 20.1% 24.6% 28.8% 32.7%
Return on Equity 20.7% 16.6% 21.0% 22.3% 22.3% 21.6%
Return on Capital
Employed 13.5% 5.7% 9.4% 13.2% 17.3% 21.6%
Cash Conversion Cycle 60 Days 58 Days 59 Days 60 Days 61 Days 62 Days
Fixed Asset Turnover 0.6 X 0.4 X 0.5 X 0.6 X 0.7 X 0.9 X
Debt to Equity Ratio 0.9 X 2.0 X 1.3 X 0.8 X 0.4 X 0.1 X
Debt Service Coverage
Ratio 1.4 X 1.1 X 1.3 X 1.4 X 1.5 X 1.6 X
Times Interest Earned
Ratio 5.9 X 2.0 X 2.8 X 4.0 X 6.5 X 14.2 X
NPV 893.4
IRR 16.8%
Payback Period 5.0 Year
Benefit to Cost Ratio 2.3 X
Daily Break-even Point
in Unit 11,092
Annual Break-even
Point in Amount
(Million) 998.9
Break-even Capacity
Utilization 65.2%

Project Profile 76
 Four H Dyeing & Printing Ltd. (Yarn Dyeing Unit)
Daily 17 MT Yarn Dyeing

Sensitivity Analysis (If RM Price increases by 10%)

Particular Average 2022 2023 2024 2025 2026
Capacity Utilization 80% 70% 75% 80% 85% 90%
Sales 1,223.2 1,063.5 1,148.2 1,224.9 1,301.5 1,378.1
Net Profit 297.1 154.7 228.5 296.2 366.5 439.8
Net Cash Flow 80.7 7.6 49.9 83.1 115.5 147.4
Cash Available for Debt
Service or EBITDA 700.3 600.8 656.7 702.4 747.9 793.4
Debt Service 526.7 525.2 525.9 526.6 527.4 528.1
Total Asset 2,438.0 2,725.7 2,549.1 2,405.6 2,294.5 2,215.2
Gross Profit Margin 39.2% 36.0% 38.2% 39.5% 40.7% 41.7%
EBIT Margin 37.9% 34.4% 36.8% 38.2% 39.4% 40.6%
EBITDA Margin 57.2% 56.5% 57.2% 57.3% 57.5% 57.6%
Pre-tax Profit Margin 27.9% 17.1% 23.4% 28.4% 33.1% 37.5%
Net Profit Margin 23.7% 14.5% 19.9% 24.2% 28.2% 31.9%
Return on Equity 20.6% 17.1% 20.9% 21.9% 21.8% 21.1%
Return on Capital
Employed 13.3% 5.9% 9.4% 13.0% 16.9% 21.1%
Cash Conversion Cycle 62 Days 60 Days 61 Days 62 Days 63 Days 63 Days
Fixed Asset Turnover 0.6 X 0.4 X 0.5 X 0.6 X 0.7 X 0.8 X
Debt to Equity Ratio 0.9 X 2.0 X 1.3 X 0.8 X 0.4 X 0.1 X
Debt Service Coverage
Ratio 1.3 X 1.1 X 1.2 X 1.3 X 1.4 X 1.5 X
Times Interest Earned
Ratio 5.7 X 2.0 X 2.8 X 3.9 X 6.2 X 13.5 X
NPV 888.5
IRR 16.3%
Payback Period 5.1 Year
Benefit to Cost Ratio 2.3 X
Daily Break-even Point in
Unit 10,930
Annual Break-even Point
in Amount (Million) 984.3
Break-even Capacity
Utilization 64.3%

Project Profile 77
 Four H Dyeing & Printing Ltd. (Yarn Dyeing Unit)
Daily 17 MT Yarn Dyeing

13. SWOT Analysis

Strength Weakness
● Having good client portfolio ● Fully import based raw materials
● Strong group support ● Price volatility of dyes and chemicals
● Experienced sponsors
● Having A1 and ST-3 credit rating
● 100% compliance factory
● Support to group as backward
linkage
● Have gas connection with
satisfactory pressure
● Only 15 Km distant from the sea port

Opportunity Threat
● Continuous export hike of the sister ● Expansion project requires huge
concerns external funds
● Reputed buyers attracts to the ● Delay in project implementation may
compliant factory increase the ramp up period
● Profitability will be increased ● For future power expansion, gas
reducing yarn dyeing outsourcing connection may be tough

Project Profile 78
 Four H Dyeing & Printing Ltd. (Yarn Dyeing Unit)
Daily 17 MT Yarn Dyeing

14. Annexure

14.1. Calculation of Financial Ratios

Terminology Formula
Sales 𝑁𝑒𝑡 𝑆𝑎𝑙𝑒𝑠 𝑜𝑓 𝑡ℎ𝑒 𝑌𝑒𝑎𝑟
Net Profit 𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡 𝐴𝑓𝑡𝑒𝑟 𝑇𝑎𝑥
Total Asset 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡 + 𝑁𝑜𝑛 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡
Cash Available
for Debt Service
or EBITDA 𝑁𝑒𝑡 𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑃𝑟𝑜𝑓𝑖𝑡 + 𝐷𝑒𝑝𝑟𝑒𝑐𝑖𝑎𝑡𝑖𝑜𝑛 𝑎𝑛𝑑 𝐴𝑚𝑜𝑟𝑡𝑖𝑧𝑎𝑡𝑖𝑜𝑛
Debt Service 𝐿𝑜𝑛𝑔 𝑇𝑒𝑟𝑚 𝐿𝑜𝑎𝑛 𝑃𝑟𝑖𝑛𝑐𝑖𝑝𝑎𝑙 + 𝐿𝑜𝑛𝑔 𝑇𝑒𝑟𝑚 𝐿𝑜𝑎𝑛 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 + 𝑆ℎ𝑜𝑟𝑡 𝑇𝑒𝑟𝑚 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑎𝑛𝑑 𝐶𝑜𝑚𝑚
Gross Profit 𝐺𝑟𝑜𝑠𝑠 𝑃𝑟𝑜𝑓𝑖𝑡
Margin 𝑆𝑎𝑙𝑒𝑠
𝑁𝑒𝑡 𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑃𝑟𝑜𝑓𝑖𝑡
EBIT Margin 𝑆𝑎𝑙𝑒𝑠
𝑁𝑒𝑡 𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑃𝑟𝑜𝑓𝑖𝑡+𝐷𝑒𝑝𝑟𝑒𝑐𝑖𝑎𝑡𝑖𝑜𝑛 𝐸𝑥𝑝𝑒𝑛𝑠𝑒
EBITDA Margin 𝑆𝑎𝑙𝑒𝑠

Pre-tax Profit 𝑃𝑟𝑒 𝑡𝑎𝑥 𝑃𝑟𝑜𝑓𝑖𝑡

Margin 𝑆𝑎𝑙𝑒𝑠
𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡
Net Profit Margin 𝑆𝑎𝑙𝑒𝑠
𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡
Return on Equity 𝑆ℎ𝑎𝑟𝑒ℎ𝑜𝑙𝑑𝑒𝑟𝑠' 𝐸𝑞𝑢𝑖𝑡𝑦

Return on Capital 𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡

Employed 𝑆ℎ𝑎𝑟𝑒ℎ𝑜𝑙𝑑𝑒𝑟𝑠' 𝐸𝑞𝑢𝑖𝑡𝑦+𝐿𝑜𝑛𝑔𝑡𝑒𝑟𝑚 𝐿𝑜𝑎𝑛

Fixed Asset 𝑆𝑎𝑙𝑒𝑠

Turnover 𝑃𝑟𝑜𝑝𝑒𝑟𝑡𝑦, 𝑃𝑙𝑎𝑛𝑡 𝑎𝑛𝑑 𝐸𝑞𝑢𝑖𝑝𝑚𝑒𝑛𝑡, 𝑁𝑒𝑡

Debt to Equity 𝑁𝑜𝑛 𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑦+𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑦

Ratio 𝑆ℎ𝑎𝑟𝑒ℎ𝑜𝑙𝑑𝑒𝑟𝑠' 𝐸𝑞𝑢𝑖𝑡𝑦

Debt Service 𝐶𝑎𝑠ℎ 𝐴𝑣𝑎𝑖𝑙𝑎𝑏𝑙𝑒 𝑓𝑜𝑟 𝐷𝑒𝑏𝑡 𝑆𝑒𝑟𝑣𝑖𝑐𝑒

Coverage Ratio 𝐷𝑒𝑏𝑡 𝑆𝑒𝑟𝑣𝑖𝑐𝑒

Times Interest 𝑁𝑒𝑡 𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑃𝑟𝑜𝑓𝑖𝑡

Earned Ratio 𝐹𝑖𝑛𝑎𝑛𝑐𝑖𝑎𝑙 𝐸𝑥𝑝𝑒𝑛𝑠𝑒 𝑜𝑓 𝑆ℎ𝑜𝑟𝑡 𝑇𝑒𝑟𝑚 𝑎𝑛𝑑 𝐿𝑜𝑛𝑔 𝑇𝑒𝑟𝑚 𝐿𝑜𝑎𝑛

Inventory
Conversion 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦
Period 𝐶𝑜𝑠𝑡 𝑜𝑓 𝐺𝑜𝑜𝑑𝑠 𝑆𝑜𝑙𝑑/365

Project Profile 79
 Four H Dyeing & Printing Ltd. (Yarn Dyeing Unit)
Daily 17 MT Yarn Dyeing

Receivable 𝐴𝑐𝑐𝑜𝑢𝑛𝑡𝑠 𝑅𝑒𝑐𝑒𝑖𝑣𝑎𝑏𝑙𝑒

Collection Period 𝑆𝑎𝑙𝑒𝑠/365

Payable Deferral 𝐴𝑐𝑐𝑜𝑢𝑛𝑡𝑠 𝑃𝑎𝑦𝑎𝑏𝑙𝑒

Period 𝐶𝑜𝑠𝑡 𝑜𝑓 𝐺𝑜𝑜𝑑𝑠 𝑆𝑜𝑙𝑑/365

Cash Conversion
Cycle 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦 𝐶𝑜𝑛𝑣𝑒𝑟𝑠𝑖𝑜𝑛 𝑃𝑒𝑟𝑖𝑜𝑑 + 𝑅𝑒𝑐𝑒𝑖𝑣𝑎𝑏𝑙𝑒 𝐶𝑜𝑙𝑙𝑒𝑐𝑡𝑖𝑜𝑛 𝑃𝑒𝑟𝑖𝑜𝑑 − 𝑃𝑎𝑦𝑎𝑏𝑙𝑒 𝐷𝑒𝑓𝑒𝑟𝑟𝑎𝑙 𝑃𝑒𝑟𝑖𝑜
𝑛
𝑁𝑒𝑡 𝐶𝑎𝑠ℎ 𝐼𝑛𝑓𝑙𝑜𝑤−𝑂𝑢𝑡𝑓𝑙𝑜𝑤𝑠 𝐷𝑢𝑟𝑖𝑛𝑔 𝑎 𝑆𝑖𝑛𝑔𝑙𝑒 𝑃𝑒𝑟𝑖𝑜𝑑
∑
NPV 𝑡=1 (1+𝐷𝑖𝑠𝑐𝑜𝑢𝑡 𝑅𝑎𝑡𝑒 𝑜𝑓 𝑅𝑒𝑡𝑢𝑟𝑛)𝑡

𝑡
𝑁𝑒𝑡 𝐶𝑎𝑠ℎ 𝐼𝑛𝑓𝑙𝑜𝑤 𝑢𝑟𝑖𝑛𝑔 𝑡ℎ𝑒 𝑃𝑒𝑟𝑖𝑜𝑑 𝑡
∑ − 𝑇𝑜𝑡𝑎𝑙 𝐼𝑛𝑖𝑡𝑖𝑎𝑙 𝐼𝑛𝑣𝑒𝑠𝑡𝑒𝑚𝑒𝑛𝑡
IRR 𝑡=1 (1+𝐷𝑖𝑠𝑐𝑜𝑢𝑛𝑡 𝑅𝑎𝑡𝑒)𝑡

𝐶𝑜𝑠𝑡 𝑜𝑓 𝑡ℎ𝑒 𝑃𝑟𝑜𝑗𝑒𝑐𝑡

Payback Period 𝐴𝑛𝑛𝑢𝑎𝑙 𝐶𝑎𝑠ℎ 𝐼𝑛𝑓𝑙𝑜𝑤𝑠

Benefit to Cost 𝑃𝑟𝑒𝑠𝑒𝑛𝑡 𝑉𝑎𝑙𝑢𝑒 𝐵𝑒𝑛𝑒𝑓𝑖𝑡 𝐸𝑥𝑝𝑒𝑐𝑡𝑒𝑑 𝑓𝑟𝑜𝑚 𝑡ℎ𝑒 𝑃𝑟𝑜𝑗𝑒𝑐𝑡

Ratio 𝑃𝑟𝑒𝑠𝑒𝑛𝑡 𝑉𝑎𝑙𝑢𝑒 𝐶𝑜𝑠𝑡 𝑜𝑓 𝑡ℎ𝑒 𝑃𝑟𝑜𝑗𝑒𝑐𝑡
𝐹𝑖𝑥𝑒𝑑 𝐶𝑜𝑠𝑡
Break-even Point 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒−𝑉𝑎𝑟𝑖𝑎𝑏𝑙𝑒 𝐶𝑜𝑠𝑡

14.2. Abbreviation of the Financial Terms

EBIT: Earnings Before Interest and Taxes

EBITDA: Earnings Before Interest, Tax, Depreciation and Amortization
DSCR: Debt Service Coverage Ratio
TIER: Times Interest Earned Ratio
NPV: Net Present Value
IRR: Internal Rate of Return

Project Profile 80
Four H Dyeing & Printing Ltd. (Yarn Dyeing Unit)
Daily 17 MT Yarn Dyeing

End of the Report

Project Profile 81