Project Feasibility Report for theAyurvedic Medical Center

Entrepreneurship:-W.Patric Chandralal Fernando,Suwasetha Medical Center,No.208, Angampitiya North,Wayikkala.

History of AyurvedaSri Lanka developed its own Ayurvedic system based on a series of prescriptions handed down from generation to generation over a period of 3,000 years. The ancient kings, who were also prominent physicians, sustained its survival and longevity. King Buddhadasa (398 AD), the most influential of these physicians, wrote the Sarartha Sangrahaya, a comprehensive manuscript .

Ancient inscriptions on rock surfaces reveal that organized medical services have existed within the country for centuries. In fact, Sri Lanka claims to be the first country in the world to have established dedicated hospitals. The Sri Lankan mountain Mihintale still has the ruins of what many believe to be the first hospital in the world. Old hospital sites now attract tourists, who marvel at the beautiful ruins. These places have come to symbolize a traditional sense of healing and care, which was so prevalent at that time.

Historically the Ayurvedic physicians enjoyed a noble position in the country’s social hierarchy due to their royal patronage. From this legacy stems a well-known Sri Lankan saying: “If you cannot be a king, becomes a healer.” Along with Buddhism, the interrelationship between Ayurveda and royalty continues to influence politics in Sri Lanka.

Ayurveda in Sri Lanka

The Indian system of medicine (Ayurveda) was a highly developed and universally accepted form of treatment when it was brought to Sri Lanka (SL) by Rev. Mahinda the son of King Asoka in the 3rd century B.C. At that time Sri Lanka too had a developed civilization. Rev. Mahinda was able to learn the language of this country and produce commentaries to the Buddhist scriptures in the Sinhala language and that was a massive undertaking. Sri Lanka had also a well-developed system of medicine called, "Desiya Vaidya Chikithsava" (Traditional System of Medicine). However, as Ayurveda was the system of medicine of the most powerful country in the world of that time, it absorbed the native system of medicine and this resulted in a complementary mixture of both systems. However, even today there are time honoured and popular medicines used in Sri Lanka, which are not found in the Indian pharmacopoeia (e.g. Sitarama Vati, Jeevananda Vati, Desadun Kalka, Buddharaja Kalka, Navaratne Kalka, Siddhartha Oil and Seethodaka Oil etc.)

Traditional medicine has been practiced in Sri Lanka for 3,000 years. At present, there are four systems of traditional medical systems in Sri Lanka viz. Ayurveda, Siddha, Unani and Deshiya Chikitsa (Sri Lankan traditional treatment). The most important among them is Ayurveda, which also forms part of the national health services provided by the government of Sri Lanka including separate ministry for Indigenous Medicine.

At present, Ayurveda serves a large proportion of the population with one Ayurvedic physician per 3,000 people in Sri Lanka. About 60 to 70% of the rural population relies on traditional and natural medicine for their primary health care. Therefore Herbal drugs are essential components of traditional medical system in Sri Lanka. Sri Lanka is identified as one of the most biologically diverse countries in Asia with about 20% of the area under forest. It has the highest species diversity per unit area in Asia and is one of the mega biodiversity hot spots

Definition of AyurvedaAyurveda means Ayu (life) and Veda (knowledge). Hence it means the Science of life.

The main objective of Ayurveda according to Pandit Shiva Sharma is, "to maintain and promote physical, mental and spiritual health of the individual and the community". The other objective is, "to prevent disease and to treat, and to cure it when it appears" Even though the primary purpose of Ayurveda is to serve mankind, there are Ayurvedic texts that deal with the treatment of elephants, horses, cows and other animals (Salihotra Samhita), and also Vruksha Ayurveda that deals with the art of preservation and healing of plants. Even today in our villages there are unregistered physicians who treat cattle and dogs using herbal medicines learnt from their fore-fathers. They serve in addition to western-trained veterinary surgeons who are posted by government to the major towns.

Ayurveda recognizes a fourfold categorization of disease, as

a) Adventitious (eg. cuts, bites, stings, infections etc.)

b) Physical (eg. endocrinological, nutritional, organic, functional etc.)

c) Mental (e.g. greed, avarice, jealousy, fear, anger etc.)

d) Natural (e.g. bondage of birth, death, old age, hunger, thirst, sleep etc.)

Mythical Beginnings of the Sri Lankan System of Medicine

Indian tradition says that the mythical king of Sri Lanka Ravana was a great physician and credits him with the authorship of five books on medicine. Arkaprakash, one of the five books in a later edition is available in Sanskrit even today. Strangely enough Eastern musicologists mention Ravana as the creator of a stringed instrument. He was also the most powerful and feared king, in the world of his time. Rarely do we get medical knowledge, musical talent and political power at the highest level in one single individual anywhere. Furthermore, in the war between an Indian prince and the son of Ravana, the Indian prince was seriously injured in the battlefield. Only a Sri Lankan physician could cure him. At the request of the invading army with the approval of the king, the physician went to the battlefield and cured the Indian prince. This is the role of the Red Cross today, and the practice of helping an enemy in distress was started by a Sri Lankan physician (Dr. Reghuvir Prasad Trivedi in the Ceylon Daily News of Sept 15th, 1985). All these incidents are from Indian records, and though the word mythical has been used in this section, millions of Indians even today believe them to be true incidents, because they are reported in their sacred book, Ramayana.

Herbal Wines of Sri Lanka

Sri Lanka has a tradition of scientific wine manufacture that hails from pre-Christian times. For the Sri Lankans, these wines have been multipurpose in their usefulness.

The following Herbal Wines were produced by the Sri Lanka Ayurvedic Drug Corporation, [under the direction of the writer of this article. All the wines are sweet red wines]

AshwagandhaContents: Withania Sominifera, Iramusu, Red & White Sandalwood, Bees Honey etc.

Indications: Aphrodisiac, Strengthens body, Improves Appetite, Used as a General Tonic, Improves Virility and Rejuvenates.

Dosage: One oz. before meals.

DasamoolaContents: 10 Medicinal Herbs, Pepper, Black Raisins, Bees Honey, Cloves etc.

Indications: General Nerve Tonic Strengthens Body, Improves Appetite. Relieves aches & pains. Cures Lung Ailments.

Dosage: One oz. before meals. The most popular Herbal Wine in Sri Lanka.

DrakshaContents: Ginger, Pepper, Tippili, Black Raisins etc.Indications: Improves Digestion, useful in Asthma, Cough and Lung Ailments.

Dosage: One oz. before meals.

ChandanaContents: White Sandalwood, Red Sandalwood, Black Raisins etc.

Indications: Improves Appetite, Cools the body, purifies the Urinary system

Dosage: One oz. before meals.

PippaliContents: Pepper, Thippili, Cardamom, White Sandal wood etc.

Indications: Improves Appetite, effective in Indigestion, Used in Cough and all types of Lung Ailments.

Dosage: One oz. before meals.

Popular oils and Arishtas produced by the major producers of Ayurvedic drugs in Sri Lanka.Name of Medicine and Indication1) Nawarathna Kalka Diarrhea - Abdominal pain, vomiting.2) Buddaraja Kalka Cough - Breathlessness, Bronchial Asthma3) Suranvidura Vati Worms - Irritable bowel syndrome4) Seetharama Vati - fever5) Siddhartha Thailaya - Paralysis, Muscular & Rheumatic pains6) Sarvavishadi Thailaya- Boils abscesses, Ulcers, Skin ailments7) Kapparavalli Syrup - Cough8) Kumari Padma Thaila - Insomnia, Psychosis, Depression.9) Sharkaradiya Kalkaya-Cough, Asthma. (Specially for children)10) Rata Kalka -Cough, Blood Purification (Specially for children)11) Dasamoola Arishtaya - Vata diseases12) Draksha Arishtaya - Phlegm diseases13) Pipplyadyasawaya - Phlegm diseases, Cough an Appetizer14) Nimbarishtaya - Blood purification, Skin diseases15) Yogaraja Guggulu - Arthritis and Pain.

Ayurveda has never been considered as a business. It was, always reckoned as a service to mankind, by healing hands, directed by a penetrative intelligence but nurtured by a warm heart.

- Source from Asian Tribune –

Ayurvedic-Medical and Wellness Services

Ayurveda is an ancient authentic medical system which originated in India, more than 5000 years ago. In Sri Lanka, it is practiced in harmony with Sri Lankan Traditional Medicine, which evolved from the prehistoric eras and currently regarded as Sri Lanka Ayurveda, with a distinct identity, different from Indian Ayurveda.

The meaning of Ayurveda is derived from the two words (Ayuh) life and (Veda) science or knowledge; hence it is a science of living.

Ayurveda treats not the symptoms of a disease but its root causes. It helps people to strengthen the immune system by treating the body, mind, and spirit of a person as a whole entity.  It works under the philosophy that mind and body are connected to each other and thus to cure any disease, both these aspects are taken as a whole. It concerns the unique healing practices accepted in Buddhist philosophy as well as in other religions.

Sri Lankan Ayurveda offers tailor-made treatment packages (14/21/30…or more days of continuous treatment programs) with yoga, meditation, and other spiritual activities in luxurious Ayurveda resorts and hospitals.

The healing process of treatment blends natural herbal therapy with the aura of beautiful breathtaking scenery that offers complete relaxation

High quality and attentive resort/hospital medical services in your room over 24 hours, protects your privacy in a serene environment with convenient and luxurious facilities.

Services Offered by Sri Lankan Ayurveda service providers.

Rheumatoid Arthritis Osteoporosis Psoriasis Parkinson disease Fertility problems Obesity Migraine Glaucoma Chronic fatigue syndrome Asthma Diabetes Mental stress Blood pressure Paralysis Urinary infections Gastritis Depression Sleep Disorder

Knowledge, research and new findings of Ayurveda have been passed down through time and services offered in the field have expanded with the aim of healing and preventing disease and offering rejuvenation through the connection between the body and the mind.

Sri Lanka now has a pool of dedicated and experienced talent with expertise in the fields passed down over several generations. The government has also recognized the potential of developing this sector; dedicated government bodies, including the Ministry of Indigenous Medicine, have been appointed to facilitate and monitor continued development.

The subject is gaining increasing momentum in higher studies with the inclusion of the subject of Ayurveda in the curricula of several education institutions in the country.

In recent years, Sri Lanka has expanded its services in Ayurvedic treatments to offer beauty and de-stress treatments in addition to traditional disease cures. Sri Lanka now offers a refreshing array of spas, resorts, and hospitals that offer extensive services utilizing Ayurvedic natural herbal products.

In addition, Sri Lankan hospitals of Western medicine are also providing cost-effective, quality medical services to patients from the developed countries and the regional countries.

Ayurveda Medical treatments in Sri Lanka: an alternative treatment

Rejuvenation Therapy (Rasayana Chikitsa)Tones up the skin & rejuvenates & strengthens all the tissues, so as to achieve ideal health & longevity. Increases Ojas (primary vitality) & improves Sattava (mental clarity) & thereby increases the resistance of the body. Includes head & face massage with medicated oils & creams, body massage with herbal oil or powder, by hand & foot, internal rejuvenate medicines & medicated steam bath. Herbal baths are also used.

Body Immunisation & Longevity Treatment (Kayalapa Chikitsa)Prime treatment for retarding the aging process, arresting the degeneration of body cells & immunization of the system. Includes intake of rasayana (special Ayurvedic medicines & diet) & comprehensive body care programmes. Most effective for either sex if undertaken before the age of 50.

Body Sudation (Sweda Karma)Medicated steam baths eliminate impurities from the body, improve the tone & complexion of the skin, reduce fat & are recommended for certain rheumatic diseases, particularly for pain. Precious herbs & herbal leaves are boiled & the steam is passed over the entire body for 10 to 20 minutes daily. Hand massage with herbal oils or herbal powder improves blood circulation & tones up the muscles.

Body SlimmingMedicated herbal powder & medicated herbal oil massages & an Ayurveda diet of herbal juices are part of the programme.

Beauty CareHerbal face packs, herbal oil massage, intake of herbal tea etc. Improves the complexion & beautifies the body.

Mental & Physical well being (Meditation & Yoga)Mental & Physical exercises meant to isolate the ego from the body & mind-designed to hone your concentration, improve health & help attain peace of mind through eight stages of training1. Disciplined behavior (Yama)2. Self purification (Niyama)3. Body postures such as lotus position (Padmasana)4. Control of breathing (Pranayama)5. Control of senses (Pratyahara)6. Fixing of a mind on a chosen objects (Dharana)7. Meditation (Dhyana)8. Samadhi - A state where one experiences absolute tranquillity & well being-tunes the body, organs, mind, breath, nerves & purifies the blood.

Overall fitness (Panchakarma Treatment)A fivefold treatment for mental & physical well being-tunes the body, organs, mind, breath, nerves & purifies the blood.

Therapeutic programmes

Treatment for chronic headaches, insomnia, mental tension & cases of hysteria, hallucination & insanity (Dhara);

Herbal oils, medicated milk, or buttermilk & decoctions are poured on the forehead/whole body. Variations include Oordhwanga Dhara (good for diseases of the eyes, ears & skin), Takra Dhara (for those suffering from memory loss, severe headache or insanity) & Sarvanga Dahra (both head & body)

Treatment to alleviate osteoarthritis, leukaemia etc (Snehapana): Medicated ghee is given internally in gradually increasing quantities for specific periods.

Treatment for dryness of nostrils, mouth & throat, severe headaches, facial paralysis & burning sensation in the head (Sirovasti); Lukewarm herbal oils are poured into a leather cap fitted on the head for specific duration

Treatment for spondilosis, rheumatic diseases like arthritis, paralysis, hemiplegia, nervous weakness & nervous disorders (Pizhichil): Lukewarm herbal oil is applied with fresh linen all over the body by trained masseurs in a rhythmic manner for a period of 1 to 1 1/2 hours daily for 7 to 21 days.

Treatment for diseases like hemiplegia, paralysis, obesity, & certain rheumatic ailments (Uduvarthana): Therapeutic massage with herbal powders.

Treatment for musculoskeletal ailments due to trauma or accidents (Marama Chikitas): Treatment that works on the extremely sensitive vital points of the body (the 107 marmas)

Treatment for nasal ailments (Nasyana): Inhalation of medicated herbal preparations, decoction oils & ghee to eliminate the moribund factors from the head neck area.

Treatment for ear ailments (Karnapoorana): Medicated oils are applied to the ear for 5 to 10 minutes daily to clean as well as treat specific ailments.

Preventing cataract & strengthening vision (Tharpana): A treatment for the eyes, effective in preventing cataract & strengthening the optic nerve.

Treatment for wasting of muscles, rheumatism, sports injuries, pain in joints, emaciation of the body or parts of the body & certain kinds of the skin diseases (Njavarakizhi): The whole body is made to perspire by the external application of medicated rice packs in the form of boluses tied in muslin bags.

Marketing Strategy

As the product will be developed offering quality, facilities and services of a medical center it will be positioned as one a high end facility. The marketing efforts in quantitative terms will be to achieve the set occupancy level initially over the 1st 6 years period, a substantial marketing budget through commercial activities need be invest to realize set objectives . The marketing effort whilst benefitting the product directly will also bring in indirect benefits to the region as well as tourism in Sri Lanka.

In marketing effort the following tools will be applied in a bit to derive set targets and outcomes.

Public Relations.E.g. Press Releases, press trips, media cooperation, press connect persons, Social

Media.

Advertising

E.g. Broachers, using social media, Using Website, add in print media.

Direct Mailing

Including B2B communication such as broachers mailed to tour operators, airlines,

travel agencies, etc.. And B2B communications such as customer magazines,

newsletters etc.

Marketing strategy in particular address.

Create an interactive Website.

Perpetrating advertising and promotional materials.

Special promotional drive for Travel Trade.

Financial Feasibility

The loan that would be released will be used for the construction of the medical center.

Its estimated that that the construction time will take upto to 10 months. Service

provided from medical center will begin after the said 10 months.

The profit received from the 1st year of the newly constituted medical centre would likely

be a negative profit.

Amount of the loan installment and interest will be managed by other means of income

by the owners.

Owners of new medical center are Ayuruvedic doctors. Since 15 years they do their

private practice near their home. Presently they earn more than Rs 200,000.00 per

month. So they are able manage the loan installment and interest from their monthly

income.

Working Plan of proposed Ayuruvedic Center

 

 Treatment

Service                   

Promotion                            

Construction                                                      

1st month

2nd month

3rd month

4th month

5th month

6th month

7th month

8th month

9th month

10th month

11th month

12th month

1st month

2nd month

3rd month

4th month

5th month

……..

1st Year 2nd year

Assumptions

Construction Period is 10 month. Medical service starts from 1st year 10th month. Income from the 1st year will be only from 2 months. Purchas row materials after every 25 days. Working days of the year 300.

Profitability Statement

Description Construction Year 2nd Year 3rd Year 4th Year 5th Year

Increased Ratio     5% 10% 10%Net Sales 4,450,000.00 26,700,000.00 28,035,000.00 30,838,500.00 33,922,350.00Total Variable Cost 3,158,400.00 19,336,800.00 20,303,640.00 22,334,004.00 24,567,404.40Gross Profit 1,291,600.00 7,363,200.00 7,731,360.00 8,504,496.00 9,354,945.60Total Fixed Cost 103,999.83 595,299.00 625,063.95 687,570.35 756,327.38Profit Before Depreciation 1,187,600.17 6,767,901.00 7,106,296.05 7,816,925.66 8,598,618.22Total Other Expenditure 1,637,665.83 2,632,997.50 2,518,997.50 2,404,997.50 2,290,997.50Profit Before Tax (-450,065.67) 4,134,903.50 4,587,298.55 5,411,928.16 6,307,620.72Net Profit (-450,065.67) 4,134,903.50 4,587,298.55 5,411,928.16 6,307,620.72

Term and Interest

Loan Amount12,000,000.0

0Time Period 10 YearsInterest Rate 9.5 %

Description Construction Year 2nd Year 3rd Year 4th Year 5th Year

           

Amount at the Beginning 12,000,000.0010,800,000.0

09,600,000.0

08,400,000.0

07,200,000.0

0

Interest 1,083,000.00 969,000.00 855,000.00 741,000.00 627,000.00

Term 1,200,000.00 1,200,000.001,200,000.0

01,200,000.0

01,200,000.0

0

Amount at the End 10,800,000.00 9,600,000.008,400,000.0

07,200,000.0

06,000,000.0

0

Total Investment

DescriptionProposed

TotalIndustrialist Bank

Land 10,000,000.00   10,000,000.00

Building 4,779,950.00 12,000,000.00 16,779,950.00Machinery / Equipments 1,435,000.00   1,435,000.00

Office Equipments & Furniture 65,000.00   65,000.00

Total Fixed Assets 16,279,950.00 12,000,000.00 28,279,950.00

Contingency 2% 325,599.00   325,599.00

Working Capital 176,592.67   176,592.67

Total Investment 16,782,141.67 12,000,000.00 28,782,141.67

Means of Finance

Means of Finance Amount Percentage

Equity 16,782,141.67 58%Loan Term Borrowings 12,000,000.00 42%

Total 28,782,141.67 100%

Ratio Analysis

Construction Year 2nd Year 3rd Year

Return on Sales 10.11 15.49 16.36

Return on Investment 1.56 14.37 15.94

Debt. Service Coverage 0.5 3.1 3.5

Pay Back Period 3.29

Eunterprenuership

Owner of Ayurvedic medical center, Dr. W.P.C. Fernando and other partners of Ayurvedic medical center, Dr. W.P.D Fernando, Dr.Renuka Priyanthi Withanage, Dr.Wasana Sandamali Jayasinghe,are well qualified and well experienced Ayurvedic consultants belonged to the 10 th generation of a popular family of Ayurvedic practitioners in Sri Lanka. They are repository of vast traditional knowledge in Ayurveda handed over through centuries within the family and from the clinical and pharmacological experience gained from years of intensive and dedicated practice of Ayurveda.Not only from the family background and experience they are well qualified in Ayurvedic medical diagnosis and treatments which enables practicing this system scientifically.Now, they had grown as one of the best of Ayurvedic Consultants in Sri lanka and known even at the International Level. They are having self-developed specialized therapeutic techniques especially for orthopedic disorders. Many local visitors visit this treatment centre to consult them for general health treatments as well as for curing disorders of various body systems. They believes in the rejuvenation of not only the body but also the mind when doing a treatment.

QUALIFICATION OF Dr. W.P.C. Fernando

D.S.A.M.S ( Hons) University of Kelaniya in Yakkala- Faculty of Ayurvedic MedicineInternship in the following institutionsGovernment Ayurvedic General Hospital – KurunegalaBandaranayake Memorial Government Ayurvedic  Research Institute – Nawinna – Mahargama

EXTRA QUALIFICATIONSAcupuncturePanchakarma

ExperienceDr. W.P.C.Fernando and Dr.Renuka Priyanthi Withanage have more than 30 years of experience in this field and, Dr.W.P.D.Fernando and Dr.Wasana Sandamali Jayasinghe have 5 years working experience in ayuruwedic consulting.

Financial Analysis

Sales Statement

Schedule - IConstruction Year 2nd Year

Index Description Annua

lUnit Price Amount Annua

lUnit Price Amount

1 OPD1600

2,500.00

4,000,000.00 9600

2,500.00

24,000,000.00

2 Sriroadhara Full 153,000.0

0 45,000.00 903,000.0

0 270,000.00

3 Sriroadhara Half 101,500.0

0 15,000.00 601,500.0

0 90,000.00

4 Abyangadhara Full10

3,000.00 30,000.00 60

3,000.00 180,000.00

5 Abyangadhara Half10

1,500.00 15,000.00 60

1,500.00 90,000.00

6 Full Body Therapy 104,500.0

0 45,000.00 604,500.0

0 270,000.00

7 Foot Terapy 302,800.0

0 84,000.00 1802,800.0

0 504,000.00

8 Head Neck Shoulder Therapy 103,400.0

0 34,000.00 603,400.0

0 204,000.00

9 Steam Barth30

2,600.00 78,000.00 180

2,600.00 468,000.00

10 Pichu Therapy20

2,600.00 52,000.00 120

2,600.00 312,000.00

11 Accupanch Therapy20

2,600.00 52,000.00 120

2,600.00 312,000.00

Total      4,450,000.0

0    26,700,000.0

0

Raw Materials RequirementSchedule - II

Construction Year 2nd Year

Index Description Annua

lUnit Price Amount Annua

lUnit Price Amount

1 OPD1600

1,200.00

1,920,000.00 9600

1,200.00

11,520,000.00

2 Sriroadhara Full 15 600.00 9,000.00 90 600.00 54,000.003 Sriroadhara Half 10 300.00 3,000.00 60 300.00 18,000.00

VISIONTo promote health, wellness, beauty and cure through natural healing system to mankind at an affordable cost.  MISSIONTo bring Ayurveda "the art of living and science of life" into the home and hearts of people all over the world.

To rediscover the healing power of Ayurveda and eradicate the maladies.

4 Abyangadhara Full 10 600.00 6,000.00 60 600.00 36,000.005 Abyangadhara Half 10 300.00 3,000.00 60 300.00 18,000.006 Full Body Therapy 10 900.00 9,000.00 60 900.00 54,000.007 Foot Terapy 30 560.00 16,800.00 180 560.00 100,800.00

8 Head Neck Shoulder Therapy 10 680.00 6,800.00 60 680.00 40,800.00

9 Steem Barth 30 520.00 15,600.00 180 520.00 93,600.0010 Pichu Therapy 20 520.00 10,400.00 120 520.00 62,400.0011 Accupanch Therapy 20 520.00 10,400.00 120 520.00 62,400.00

Total      2,010,000.0

0    12,060,000.0

0

Administrative Overhead Cost

Annex - I

Description Construction Year cost

2nd Year cost

Travelling 6000 36,000.00

Welfare 5000 30,000.00

Postal, Stationary & Telephone 2500 15,000.00

License 2500 15,000.00

Insurance 10000 60,000.00

Other 2500 15,000.00

Total 28,500.00 171,000.00

Sales Overhead CostAnnex - II

Description Construction Year cost

2nd Year cost

Promotion Expenses 10000 60,000.00

Total 10,000.00 60,000.00

Production Overhead Cost

Annex - III

Description Construction Year cost

2nd Year cost

Buildings 2% 55933 335,599.00

Machinery 2% 9567 28,700.00

Total 65,499.83 364,299.00

Salaries & Wages ( Construction Year )

Annex - IV

Description Quantity

Monthly Salary Amount 4 months

Doctors 2 60,000.00 120,000.00 480,000.00

Helpers 2 40,000.00 80,000.00 320,000.00

Clack 1 20,000.00 20,000.00 80,000.00

Other Staff 1 12,000.00 12,000.00 48,000.00

Gross Salary 6 132,000.00 232,000.00 928,000.00

EPF 12%       111,360.00

EPF 3%       27,840.00

Total       1,067,200.00

Salaries & Wages ( Second Year )

Description Quantity

Monthly Salary Amount Annual

Doctors 2 70,000.00 140,000.00 1,680,000.00

Helpers 8 40,000.00 320,000.00 3,840,000.00

Clack 1 20,000.00 20,000.00 240,000.00

Other Staff 1 12,000.00 12,000.00 144,000.00

Gross Salary 12 142,000.00 492,000.00 5,904,000.00

EPF 12%       708,480.00

EPF 3%       177,120.00

Total       6,789,600.00

Machinery and EquipmentsAnnex - VI

Description Amount

equipments 250,000.00

Furniture's and Fittings 1,000,000.00

Interior decors 100,000.00

other 85,000.00

Total 1,435,000.00

Depreciations ( Costruction Year )

Annex - VII

Fixed Assets Amount Percentage Amount

1. Building16,779,950.0

0 5% 279,665.83

2. Machinery 1,435,000.00 10% 47,833.333. Office Equipment & Furniture 65,000.00 5% 1,083.33

4. Vehicle 4,500,000.00 15% 225,000.00

Total     553,582.50

Depreciations (2nd Year)Annex - VII

Fixed Assets AmountPercentag

e Amount

       

1. Building 16,779,950.0 5% 838,997.50

Electricity End Landry Charge

Annex - V

DescriptionCurrent

Monthly Annual

Electricity 25,000.00 300,000.00

Landry Carge 15,600.00 187,200.00

Total   487,200.00

0

2. Machinery 1,435,000.00 10% 143,500.003. Office Equipment & Furniture 65,000.00 10% 6,500.00

4. Vehicle 4,500,000.00 15% 675,000.00

Total    1,663,997.5

0

Working Capital

Description Construction Year 2nd Year 3rd Year

Raw Materials 167,500.00 1,005,000.00 1,005,000.00

Semi Finished Goods 7,338.00 64,456.00 65,668.80

Finished Goods 1,754.67 64,456.00 67,678.80

Total Current Assets 176,592.67 1,133,912.00 1,138,347.60

Net Working Capital 176,592.67 1,133,912.00 1,138,347.60

Growth of Working Capital 176,592.67 957,319.33 4,435.60

Working capital calculation

Finish Good = No of days allowed X Annual raw material requirement

Numbers of working days per annum

Product in process = No of days allowed X (annual raw material cost +50% of total production cost)

Numbers of working days per annum

Finish goods = No of days allowed X Total cost of production

Numbers of working days per annum

Profitability Statement

Description Construction Year 2nd Year 3rd Year 4th Year 5th Year

Total sales 4,450,000.00 26,700,000.00 28,035,000.00 30,838,500.00 33,922,350.00

Incraeament Ratio     5.00% 10.00% 10.00%

Raw Materials 2,010,000.00 12,060,000.00 12,663,000.00 13,929,300.00 15,322,230.00

Labor 1,067,200.00 6,789,600.00 7,129,080.00 7,841,988.00 8,626,186.80

Gross Profit 1,291,600.00 7,363,200.00 7,731,360.00 8,504,496.00 9,354,945.60

Less :          

Administrative Overhead Cost 28,500.00 171,000.00 179,550.00 197,505.00 217,255.50

Sales Overhead Cost 10,000.00 60,000.00 63,000.00 69,300.00 76,230.00Production Overhead Cost 65,499.83 364,299.00 382,513.95 420,765.35 462,841.88

Total Fixed Cost 103,999.83 595,299.00 625,063.95 687,570.35 756,327.38

Profit Before Depreciation 1,187,600.17 6,767,901.00 7,106,296.05 7,816,925.66 8,598,618.22Less :          

Interest 1,083,000.00 969,000.00 855,000.00 741,000.00 627,000.00

Annual Depreciation 554,665.83 1,663,997.50 1,663,997.50 1,663,997.50 1,663,997.50Total Other Expenditure 1,637,665.83 2,632,997.50 2,518,997.50 2,404,997.50 2,290,997.50Profit Before Tax (-450,065.67) 4,134,903.50 4,587,298.55 5,411,928.16 6,307,620.72Net Profit (-450,065.67) 4,134,903.50 4,587,298.55 5,411,928.16 6,307,620.72

Term and Interest

Loan Amount 12,000,000.00

Time Period 10 YearsInterest Rate 9.5 %

Description Construction Year 2nd Year 3rd Year 4th Year 5th Year

Amount at the Beginning 12,000,000.00 10,800,000.00 9,600,000.00 8,400,000.00 7,200,000.00

Interest 1,083,000.00 969,000.00 855,000.00 741,000.00 627,000.00

Term 1,200,000.00 1,200,000.00 1,200,000.00 1,200,000.00 1,200,000.00

Amount at the End 10,800,000.00 9,600,000.00 8,400,000.00 7,200,000.00 6,000,000.00

Total Investment

DescriptionProposed

TotalIndustrialist Bank

Land 10,000,000.00   10,000,000.00

Building 4,779,950.00 12,000,000.00 16,779,950.00

Machinery / Equipments 1,435,000.00   1,435,000.00

Office Equipments & Furniture 65,000.00   65,000.00

Total Fixed Assets 16,279,950.00 12,000,000.00 28,279,950.00

Contingency 2% 325,599.00   325,599.00

Working Capital 176,592.67   176,592.67

Total Investment 16,782,141.67 12,000,000.00 28,782,141.67

Means of Finance

Means of Finance Amount Percentage

Equity 16,782,141.67 58%Loan Term Borrowings 12,000,000.00 42%

Total 28,782,141.67 100%

Cash Flow Statement

Description Construction Year 2nd Year 3rd Year

Cash Flow In      

Owner Investment 16,782,141.67   0.00

Loan Investment 12,000,000.00   0.00

Profit Before interest & Depreciation : 1,187,600.17 6,767,901.00 7,106,296.05

Financial Sources At the Beginning   (-769,800.83) 2,871,780.83

Total 29,969,741.83 5,998,100.17 9,978,076.88

Fixed Assets 28,279,950.00    

Increment of working Capital 176,592.67 957,319.33 4,435.60

Loan Term ( Annual ) 1,200,000.00 1,200,000.00 1,200,000.00

       

Total 30,739,542.67 3,126,319.33 2,059,435.60

Net Cash Flow (-769,800.83) 2,871,780.83 7,918,641.28

Estimated Balance Sheet

Assets Construction Year 2nd Year 3rd Year

Fixed Assets 28,279,950.00 28,279,950.00 28,279,950.00

Less : Depreciations 554,665.83 2,218,663.33 3,882,660.83

Net Fixed Assets 27,725,284.17 26,061,286.67 24,397,289.17

Current Assets 176,592.67 1,133,912.00 1,138,347.60

Financial Balance ( End of Year ) (-769,800.83) 2,871,780.83 7,918,641.28

Total 27,132,076.00 30,066,979.50 33,454,278.05

Liabilities      

Capital Investment 16,782,141.67 16,782,141.67 16,782,141.67

Loan Capital 10,800,000.00 9,600,000.00 8,400,000.00

Net Profit (After Depreciation) (-450,065.67) 3,684,837.83 8,272,136.38

Total 27,132,076.00 30,066,979.50 33,454,278.05

Ratio Analysis

Construction Year 2nd Year 3rd Year

Return on Sales 10.11 15.49 16.36

Return on Investment 1.56 14.37 15.94

Debt. Service Coverage 0.5 3.1 3.5

Pay Back Period 3.29

Assumptions

Construction Period is 10 month.

Medical service starts from 1st year 10th month.

Income from the 1st year will be only from 2 months.

Purchas row materials after every 25 days.

Working days of the year 300.