Investment Office ANRS

Project Profile on the Assembly and

fabrication of mechanical Seed
cleaner

Development Studies
Associates (DSA)

October 2008
Addis Ababa
 Table of Contents

1. Executive Summary............................................................................................1
2. Product Description and Application..............................................................1
3. Market Study, Plant Capacity and Production Program..............................2
3.1 Market Study...................................................................................................................2
3.1.1 Present Demand and Supply....................................................................................2
3.1.2 Projected Demand....................................................................................................2
3.1.3 Pricing and Distribution...........................................................................................3
3.2 Plant Capacity..................................................................................................................3
3.3 Production Program.........................................................................................................3
4. Raw Materials and Utilities..............................................................................3
4.1 Availability and Source of Raw Materials.......................................................................3
4.2 Annual Requirement and Cost of Raw Materials and Utilities.......................................4
5 Location and Site...............................................................................................4
6 Technology and Engineering............................................................................4
6.1 Production Process...........................................................................................................4
6.2 Machinery and Equipment...............................................................................................5
6.3 Civil Engineering Cost....................................................................................................6
7 Human Resource and Training Requirement................................................6
7.1 Human Resource..............................................................................................................6
7.2 Training Requirement......................................................................................................6
8 Financial Analysis.............................................................................................7
8.1 Underlying Assumption...................................................................................................7
8.2 Investment........................................................................................................................8
8.3 Production Costs..............................................................................................................8
8.4 Financial Evaluation........................................................................................................9
9 Economic and Social Benefit and Justification.............................................10
ANNEXES...............................................................................................................11
 1. Executive Summary

This project profile deals with the establishment of assembly and fabrication of mechanical seed
cleaner in Amhara National Regional State. The following presents the main findings of the
study

Demand projection divulges that the potential domestic demand for the equipment is substantial
and is expected to increase with time. Accordingly, the planned plant is set to produce 200 units
annually. The total investment cost of the project including working capital is estimated at birr
3.7 million and creates 14 job opportunity and birr 419.59 of income

The financial result indicates that the project will generate profit beginning from the first year of
operation. Moreover, the project will break even at 27.9% of capacity utilization and it will
payback fully the initial investment less working capital in 3 years. The result further show that
the calculated IRR of the project is 26% and NPV discounted at 18% of birr 873,783

In addition to this, the proposed project possesses wide range of economic and social benefits
such as increasing the level of investment, tax revenue and employment creation

Generally’ the project is technically feasible, financially and commercially viable as well as
socially and economically acceptable. Hence the project is worth implementing.

2. Product Description and Application

Harvested seeds from a thresher or a combine harvester machine contain many types of
undesirable materials. This includes:

a) Plant parts and inert matter (stem, leave, stone, soil etc.)
b) Weed seeds (Noxious and obnoxious).
c) Other crop seeds (other cultivars).
d) Seeds of the varieties which are immature, broken, damaged and deteriorated.

Therefore, unclean seed has to be processed to remove the above mentioned contaminants to
upgrade the quality of seed.

1
In general the envisaged mechanical seed cleaners are to be used for seed clearing and grading in
small scale operation. Seed cleaning and grading enhance the quality of the seeds and thereby
the value of the seeds. In rural areas farmers will get more for their grains if they use these
mechanical cleaners for cleaning and grading their marketable surplus

3. Market Study, Plant Capacity and Production Program

3.1 Market Study

3.1.1 Present Demand and Supply

Seeds are the foundation of human and animal life on earth. This is because the foods we eat, the
fiber we wear, and most of the products we use in our daily life, are created from a seed. There is
no substitute for a quality seed. In Ethiopia agriculture sector contributes about 50% of the total
GDP. However, the population growth and the traditional farming system, has greatly burdened
the agriculture sector as its productivity is not able to meet the current food requirements.

The size of the farming sector in the economy of the Amhara Region and the quantity of farm
produce (grain) indicate the magnitude of the need for seed cleaning service and by extension for
seed cleaning machines. At present, with the exception of a few machines installed by grain
merchants or by grain mills operators in limited urban areas, there are no seed cleaning machines
in the whole Amhara Region. Whatever surplus grain produced and marketed from the Region,
it is sold before cleaning and grading which in turn depresses the farm get price. If seed cleaning
machines are produced and distributed in the Region, there will be added-value to the Regions
farm products and farmers will get higher prices.

3.1.2 Projected Demand

The future demand for mechanical seed cleaning machines is expected to grow substantially as
awareness to the benefit of the equipment increases with time. For instance, in Amhara region
there are close to 3.33 million farming families. If we assume that one seed cleaning machine
can serve 15 families on average, the potential maximum demand for mechanical threshing
machines will be 222 thousand units. From this if we conservatively assume that only 10 percent

2
of the maximum potential demand will be realized, demand will be about 22,000 units. This
amount will be improved in the future with an increase in agricultural production and awareness
to the advantage of the machine. At the same time this suggests the relevance of establishing a
mechanical seed cleaner.

3.1.3 Pricing and Distribution

Based on the market research result and the capacity of the envisaged plant, the selling price is
set to be birr 14,058 per unit. The available sales network shall be used by the envisaged plant.

3.2 Plant Capacity

Given the expected demand for mechanical seed cleaner as presented earlier, and the planned
technology, the envisaged plant is set to produce 200 units annually.

3.3 Production Program

The program is scheduled based on the consideration that the envisaged plant will work 275 days
in a year in 1 shift, where the remaining days will be holidays and for maintenance. During the
first year of operation the plant will operate at 70 percent capacity and then it grows to 85
percent in the 2nd year. The capacity will grow to 100 percent starting from the 3 rd year. This
consideration is developed based on the assumption that with effective marketing and
management all barriers (market and logistics) would be eliminated within the first two years of
operation.

4. Raw Materials and Utilities

4.1 Availability and Source of Raw Materials
The main raw materials used in the assembly and fabrication of mechanical seed cleaner are
metal sheets, angle bar, shafts and bearings. The envisaged plant shall acquire the metal sheet
and angle bar from domestic sources and import the other items.

3
 4.2 Annual Requirement and Cost of Raw Materials
and Utilities
The annual raw material and utility requirement and the associated cost for the envisaged plant is
listed in table 1 here under

Table 1 Material and Utility Requirement

Total Cost
Material and Input Quantity L.C. F.C.
Sheet Metal 10 ton 383400
MS Angle 2 ton 102240
Shafts 400 pcs 0 276048
Block Bearing 1800 pcs 0 81792
Bolts and Nuts 60 kg 0 3834
Paint 300 lit 28116 0
Total Material Cost 513756 361674
Utility
Electricity 205,000 kwh 112,750
Water 3,000m3 7,950
Total Utility Cost 120,700

Based on the above table the total cost of material and utility is estimated to be birr 996,130 per
annum.

5 Location and Site

The appropriate locations for the envisaged project in view of the availability of input,
infrastructure as well as market for the output are major towns of the region mainly Bahir Dar,
Debre Markos and Debre Birhan.

6 Technology and Engineering

6.1 Production Process

The Process of fabrication involves working on sheet metals including shearing of edges, folding
for body frame, angle bar structure work, drilling and screwing, turning of shafts, pulleys and
machining of plumber, block bearing, assembly including welding, fastening with bolts and nuts

4
and finally spray painting. The alternative technology of manufacturing depends on the type of
cleaning machine desired to be produced. For instance if the interest is to fabricate gravity
separators, pneumatic separators, or magnetic separators; it needs relatively sophisticated
technique and therefore, is not selected for this profile.

6.2 Machinery and Equipment

The machineries and equipment required for producing seed cleaning machine is detailed in table
2 below

Table 2: Machinery and Equipment

Machinery and Equipment Quantity

Central Lathe 1
Double Ended Bench Grinder 1
Precision Center Lathe 1
Universal Shaper 1
Pillar Drilling Machine 1
Sheet Folding Machine 1
Arc Welding Set 1
Air Compressor with Spray Painting 1
Gas Welding Set 1
Bench Drilling Machine 1
Hand Tools Set

The, total cost of machinery and equipment including freight insurance and bank cost is
estimated to be about birr 639,000.

The following are some of the machineries suppliers’ address for the envisaged project

Daulat Industrial Corporation (P) Ltd.

P.B. No.309, Civil Lines
Ludhiana, India.

Perfect Machine Tools Pvt. Ltd.

Bell Building, Sir P.M. Road
Mumbai 400 001, India

5
 6.3 Civil Engineering Cost
The total site area for the envisaged plant is estimated to be 350m 2 where 300m2 is allocated to
the production place and the remaining space is left for stores (30m 2), office buildings and
facilities (20m2).

7 Human Resource and Training Requirement

7.1 Human Resource

The list of required manpower for the envisaged plant is stated in table 3 below

Table 3: Human Resource Requirement

Total Annual
Position No. Required Monthly Salary Salary
Manager/Skilled Technician 1 8946 107352
Accountant/Cashier 1 2556 30672
Store Keeper and Sales Clerk 1 1534 18403
Draftsman/Supervisor 1 3834 46008
Operators 6 1534 110419
Daily Laborers 2 767 18403
Guards 2 767 18403
Benefit (20%) 69932
Total 14 419593

The envisaged plant creates 14 job opportunity and about birr 419,593 thousand of income. The
professionals and support staffs for the envisaged plant shall be recruited from Amhara region

7.2 Training Requirement

Training of key personnel shall be conducted in collaboration with the suppliers of the plant
machineries. The training should primarily focuses on the production technology and machinery
maintenance and trouble shooting. Birr 38,340 will be allocated as training expense.

6
8 Financial Analysis
8.1 Underlying Assumption

The financial analysis of assembly and fabrication of mechanical seed cleaner making plant is
based on the data provided in the preceding chapters and the following assumptions.

A. Construction and Finance

Construction period 2 year

Source of finance 40% equity and 60% loan
Tax holidays 2 years
Bank interest rate 12%
Discount for cash flow 18%
Value of land Based on lease rate of ANRS
Spare Parts, Repair & Maintenance 3% of fixed investment

B. Depreciation

Building 5%
Machinery and equipment 10%
Office furniture 10%
Vehicles 20%
Pre-production (amortization) 20%

C. Working Capital (Minimum Days of Coverage)

Raw Material-Local 30
Raw Material-Foreign 120
Factory Supplies in Stock 30
Spare Parts in Stock and Maintenance 30
Work in Progress 10
Finished Products 15
Accounts Receivable 30
Cash in Hand 30
Accounts Payable 30

7
 8.2 Investment
The total investment cost of the project including working capital is estimated at Birr 3.7 million
as shown in table 4 below. The Owner shall contribute 40% of the finance in the form of equity
while the remaining 60% is to be financed by bank loan.

Table 4: Total initial investment

Items L.C F.C Total

Land
2684 2684
Building and civil works
1789200 1789200
Office equipment
63900 63900
Vehicles
0 0
Plant machinery & equipment
255600 383400 639000
Total fixed investment cost
2111384 383400 2494784
Pre production capital
expenditure* 124740 0 124740
Total initial investment
2236124 383400 2619524
Working capital at full capacity
293968 157820 451791
Total 2530092 541220 3071313
*Pre-production capital expenditure includes - all expenses for pre-investment studies, consultancy fee during
construction and expenses for company‘s establishment, project administration expenses, commission expenses,
preproduction marketing and interest expenses during construction.

The foreign component of the project accounts for 17.6% of the total investment cost.

8.3 Production Costs

The total production cost at full capacity operation is estimated at Birr 1,997.2 thousand as
detailed in table 5 below.

8
 Table 5: Production Cost

Items Cost
1. Raw materials 875,430
2. Utilities 120,700
3. Wages and Salaries 419,593
4. Spares and Maintenance 24,949
Factory costs 1,440,672
5. Depreciation 184,699
6. Financial costs 184,280
Total Production Cost 1,809,651

8.4 Financial Evaluation

I. Profitability
According to the projected income statement attached in the annex part (see annex 4) the project
will generate profit beginning from the first year of operation. Ratios such as the percentage of
net profit to total sales, return on equity and return on total investment are 9%, 16% and 23% in
the first year and are gradually rising. Furthermore, the income statement and other profitability
indicators show that the project is viable.

II. Breakeven Analysis

The breakeven point of the project is estimated by using income statement projection.
Accordingly, the project will break even at 27.9% of capacity utilization.

III. Payback Period

Investment cost and income statement projection are used in estimating the project payback
period. The projects will payback fully the initial investment less working capital in 3 years.

IV. Simple Rate of Return

For the envisaged plant the simple rate of return equals to 23.4%

V. Internal Rate of Return and Net Present Value

Based on cash flow statement described in the annex part, the calculated IRR of the project is
26% and the net present value at 18 % discount is Birr 873,783

9
 VI. Sensitivity Analysis
The envisaged plant is profitable even with considerable cost increment. That is the plant
maintains to be profitable starting from the first year when 10 % cost increment takes place in
the sector. This result is accompanied with payback period of 3 years and 2 months.

9 Economic and Social Benefit and Justification

The envisaged project possesses wide range of benefits that promotes the socio-economic goals
and objectives stated in the strategic plan of the Amhara National Regional State. It also plays
positive role in diversifying the economic activity by enhancing the industrial sector of the
region. The other major benefits are listed as follows:

A. Profit Generation

The project is found to be financially viable and earns a profit of birr ….million within the
project life. Such result induces the project promoters to reinvest the profit which, therefore,
increases the investment magnitude in the region.

B. Tax Revenue

In the project life under consideration, the region will collect about birr 6.01 million from
corporate tax payment alone (i.e. excluding income tax, sales tax and VAT). Such result create
additional fund for the regional government that will be used in expanding social and other basic
services in the region

C. Employment and Income Generation

The proposed project is expected to create employment opportunity to several citizens of the
region. That is, it will provide permanent employment to 14 professionals as well as support
stuffs. Consequently the project creates income of birr 419,593 thousands per year. This would
be one of the commendable accomplishments of the project.

D. Pro Environment Project

The proposed production process is environment friendly.

10
ANNEXES

11
 Annex 1: Total Net Working Capital Requirements (in Birr)
CONSTRUCTION PRODUCTION
Year 1 Year 2 1 2 3 4

Capacity Utilization (%) 0.00 0.00 75% 90% 100% 100%

1. Total Inventory 0.00 0.00 439671 527606 586229 586229

Raw Materials in Stock- Total 0.00 0.00 160401 192481 213867 213867
Raw Material-Local 0.00 0.00 42035 50442 56046 56046
Raw Material-Foreign 0.00 0.00 118366 142039 157821 157821
Factory Supplies in Stock 0.00 0.00 1484 1780 1978 1978
Spare Parts in Stock and Maintenance 0.00 0.00 6124 7348 8165 8165
Work in Progress 0.00 0.00 37088 44505 49450 49450
Finished Products 0.00 0.00 74175 89011 98901 98901
2. Accounts Receivable 0.00 0.00 230040 276048 306720 306720
3. Cash in Hand 0.00 0.00 59572 71486 79429 79429
CURRENT ASSETS 0.00 0.00 568883 682659 758510 758510
4. Current Liabilities 0.00 0.00 230040 276048 306720 306720
Accounts Payable 0.00 0.00 230040 276048 306720 306720
TOTAL NET WORKING CAPITAL REQUIRMENTS 0.00 0.00 338843 406611 451790 451790
INCREASE IN NET WORKING CAPITAL 0.00 0.00 338843 67769 45179 0

1
 Annex 1: Total Net Working Capital Requirements (in Birr) (continued)
PRODUCTION
5 6 7 8 9 10

Capacity Utilization (%) 100% 100% 100% 100% 100% 100%

1. Total Inventory 586229 586229 586229 586229 586229 586229

Raw Materials in Stock-Total 213867 213867 213867 213867 213867 213867
Raw Material-Local 56046 56046 56046 56046 56046 56046
Raw Material-Foreign 157821 157821 157821 157821 157821 157821
Factory Supplies in Stock 1978 1978 1978 1978 1978 1978
Spare Parts in Stock and Maintenance 8165 8165 8165 8165 8165 8165
Work in Progress 49450 49450 49450 49450 49450 49450
Finished Products 98901 98901 98901 98901 98901 98901
2. Accounts Receivable 306720 306720 306720 306720 306720 306720
3. Cash in Hand 79429 79429 79429 79429 79429 79429
CURRENT ASSETS 758510 758510 758510 758510 758510 758510
4. Current Liabilities 306720 306720 306720 306720 306720 306720
Accounts Payable 306720 306720 306720 306720 306720 306720
TOTAL NET WORKING CAPITAL REQUIRMENTS 451790 451790 451790 451790 451790 451790
INCREASE IN NET WORKING CAPITAL 0 0 0 0 0 0

2
 Annex 2: Cash Flow Statement (in Birr)
CONSTRUCTION PRODUCTION
Year 1 Year 2 1 2 3 4
TOTAL CASH INFLOW 1309761 1761552 2338740 2576448 2842272 2811600
1. Inflow Funds 1309761 1761552 230040 46008 30672 0
Total Equity 523905 704621 0 0 0 0
Total Long Term Loan 785857 1056931 0 0 0 0
Total Short Term Finances 0 0 230040 46008 30672 0
2. Inflow Operation 0 0 2108700 2530440 2811600 2811600
Sales Revenue 0 0 2108700 2530440 2811600 2811600
Interest on Securities 0 0 0 0 0 0
3. Other Income 0 0 0 0 0 0
TOTAL CASH OUTFLOW 1309761 1309761 2300115 2127763 2453569 2351919
4. Increase In Fixed Assets 1309761 1309761 0 0 0 0
Fixed Investments 1247392 1247392 0 0 0 0
Pre-production Expenditures 62370 62370 0 0 0 0
5. Increase in Current Assets 0 0 568883 113777 75851 0
6. Operating Costs 0 0 1242471 1485720 1647887 1647887
7. Corporate Tax Paid 0 0 0 0 238421 249478
8. Interest Paid 0 0 488761 221135 184279 147423
9.Loan Repayments 0 0 0 307131 307131 307131
10.Dividends Paid 0 0 0 0 0 0
Surplus(Deficit) 0 451790 38625 448685 388703 459681
Cumulative Cash Balance 0 451790 490416 939101 1327804 1787486

3
 Annex 2: Cash Flow Statement (in Birr): Continued
PRODUCTION
5 6 7 8 9 10
TOTAL CASH INFLOW 2811600 2811600 2811600 2811600 2811600 2811600
1. Inflow Funds 0 0 0 0 0 0
Total Equity 0 0 0 0 0 0
Total Long Term Loan 0 0 0 0 0 0
Total Short Term Finances 0 0 0 0 0 0
2. Inflow Operation 2811600 2811600 2811600 2811600 2811600 2811600
Sales Revenue 2811600 2811600 2811600 2811600 2811600 2811600
Interest on Securities 0 0 0 0 0 0
3. Other Income 0 0 0 0 0 0
TOTAL CASH OUTFLOW 2326120 2307805 2282006 1949076 1949076 1949076
4. Increase In Fixed Assets 0 0 0 0 0 0
Fixed Investments 0 0 0 0 0 0
Pre-production Expenditures 0 0 0 0 0 0
5. Increase in Current Assets 0 0 0 0 0 0
6. Operating Costs 1647887 1647887 1647887 1647887 1647887 1647887
7. Corporate Tax Paid 260534 279076 290132 301189 301189 301189
8. Interest Paid 110567 73712 36856 0 0 0
9. Loan Repayments 307131 307131 307131 0 0 0
10.Dividends Paid 0 0 0 0 0 0
Surplus(Deficit) 485480 503795 529594 862524 862524 862524
Cumulative Cash Balance 2272966 2776761 3306355 4168879 5031404 5893928

4
 Annex 3: DISCOUNTED CASH FLOW-TOTAL CAPITAL INVESTED
CONSTRUCTION PRODUCTION
Year 1 Year 2 1 2 3 4
TOTAL CASH INFLOW 0 0 2108700 2530440 2811600 2811600
1. Inflow Operation 0 0 2108700 2530440 2811600 2811600
Sales Revenue 0 0 2108700 2530440 2811600 2811600
Interest on Securities 0 0 0 0 0 0
2. Other Income 0 0 0 0 0 0
TOTAL CASH OUTFLOW 1309761 1309761 1581313 1553489 1693066 1897364
3. Increase in Fixed Assets 1309761 1309761 0 0 0 0
Fixed Investments 1247392 1247392 0 0 0 0
Pre-production Expenditures 62370 62370 0 0 0 0
4. Increase in Net Working Capital 0 0 338843 67769 45179 0
5. Operating Costs 0 0 1242471 1485720 1647887 1647887
6. Corporate Tax Paid 0 0 0 0 238421 249478
NET CASH FLOW -1309761 -1309761 527387 976951 1118534 914236
CUMMULATIVE NET CASH FLOW -1309761 -2619523 -2092136 -1115185 3349 917585
Net Present Value (at 18%) -1309761 -1109967 378761 594603 576928 399621
Cumulative Net present Value -1309761 -2419729 -2040968 -1446365 -869438 -469817

5
 Annex 3: DISCOUNTED CASH FLOW-TOTAL CAPITAL INVESTED (Continued)
PRODUCTION
5 6 7 8 9 10
TOTAL CASH INFLOW 2811600 2811600 2811600 2811600 2811600 2811600
1. Inflow Operation 2811600 2811600 2811600 2811600 2811600 2811600
Sales Revenue 2811600 2811600 2811600 2811600 2811600 2811600
Interest on Securities 0 0 0 0 0 0
2. Other Income 0 0 0 0 0 0
TOTAL CASH OUTFLOW 1908421 1926962 1938019 1949076 1949076 1949076
3. Increase in Fixed Assets 0 0 0 0 0 0
Fixed Investments 0 0 0 0 0 0
Pre-production Expenditures 0 0 0 0 0 0
4. Increase in Net Working Capital 0 0 0 0 0 0
5. Operating Costs 1647887 1647887 1647887 1647887 1647887 1647887
6. Corporate Tax Paid 260534 279076 290132 301189 301189 301189
NET CASH FLOW 903179 884638 873581 862524 862524 862524
CUMMULATIVE NET CASH FLOW 1820764 2705402 3578983 4441507 5304031 6166556
Net Present Value (at 18%) 334566 277710 232406 194461 164798 139659
Cumulative Net present Value -135251 142459 374865 569326 734124 873783
Net Present Value (at 18%) 873,783

Internal Rate of Return 26.0%

Annex 4: NET INCOME STATEMENT (in Birr):Continued

PRODUCTION
6
 6 7 8 9 10

Capacity Utilization (%) 100% 100% 100% 100% 100%

1. Total Income 2108700 2530440 2811600 2811600 2811600

Sales Revenue 2108700 2530440 2811600 2811600 2811600

Other Income 0 0 0 0 0

2. Less Variable Cost 1090370 1308444 1453827 1453827 1453827

VARIABLE MARGIN 1018330 1221996 1357773 1357773 1357773

(In % of Total Income) 48.29 48.29 48.29 48.29 48.29

3. Less Fixed Costs 336798 361974 378758 378758 378758

OPERATIONAL MARGIN 681532 860022 979016 979016 979016

(In % of Total Income) 32 34 35 35 35

4. Less Cost of Finance 488761 221135 184279 147423 110567

5. GROSS PROFIT 192770 638887 794737 831593 868448

6. Income (Corporate) Tax 0 0 238421 249478 260534

7. NET PROFIT 192770 638887 556316 582115 607914

RATIOS (%)

Gross Profit/Sales 33% 34% 36% 36% 36%

Net Profit After Tax/Sales 23% 24% 25% 25% 25%

Return on Investment 24% 23% 23% 23% 23%

Return on Equity 53% 55% 57% 57% 57%

Annex 5: Projected Balance Sheet (in Birr)

CONSTRUCTION PRODUCTION
7
 Year 1 Year 2 1 2 3 4
TOTAL ASSETS 1309761 3071313 3494124 3871888 4151744 4426728
1. Total Current Assets 0 451790 1059299 1621761 2086315 2545996
Inventory on Materials and Supplies 0 0 168008 201609 224010 224010
Work in Progress 0 0 37088 44505 49450 49450
Finished Products in Stock 0 0 74175 89011 98901 98901
Accounts Receivable 0 0 230040 276048 306720 306720
Cash in Hand 0 0 59572 71486 79429 79429
Cash Surplus, Finance Available 0 451790 490416 939101 1327804 1787486
Securities 0 0 0 0 0 0
2. Total Fixed Assets, Net of Depreciation 1309761 2619523 2434825 2250127 2065429 1880732
Fixed Investment 0 1247392 2494784 2494784 2494784 2494784
Construction in Progress 1247392 1247392 0 0 0 0
Pre-Production Expenditure 62370 124739 124739 124739 124739 124739
Less Accumulated Depreciation 0 0 184698 369396 554094 738791
3. Accumulated Losses Brought Forward 0 0 0 0 0 0
4. Loss in Current Year 0 0 0 0 0 0
TOTAL LIABILITIES 1309761 3071313 3494124 3871888 4151744 4426728
5. Total Current Liabilities 0 0 230040 276048 306720 306720
Accounts Payable 0 0 230040 276048 306720 306720
Bank Overdraft 0 0 0 0 0 0
6. Total Long-term Debt 785857 1842788 1842788 1535657 1228525 921394
Loan A 785857 1842788 1842788 1535657 1228525 921394
Loan B 0 0 0 0 0 0
7. Total Equity Capital 523905 1228525 1228525 1228525 1228525 1228525
Ordinary Capital 523905 1228525 1228525 1228525 1228525 1228525
Preference Capital 0 0 0 0 0 0
Subsidies 0 0 0 0 0 0
8. Reserves, Retained Profits Brought Forward 0 0 0 192770 831658 1387974
9.Net Profit After Tax 1309761 3071313 3494124 3871888 4151744 4426728
Dividends Payable 0 451790 1059299 1621761 2086315 2545996
Retained Profits 0 0 168008 201609 224010 224010

Annex 5: Projected Balance Sheet (in Birr): Continued

PRODUCTION
5 6 7 8 9 10
8
 TOTAL ASSETS 4727510 5071555 5441399 6144174 6846948 7549722
1. Total Current Assets 3031476 3535271 4064865 4927390 5789914 6652439
Inventory on Materials and Supplies 224010 224010 224010 224010 224010 224010
Work in Progress 49450 49450 49450 49450 49450 49450
Finished Products in Stock 98901 98901 98901 98901 98901 98901
Accounts Receivable 306720 306720 306720 306720 306720 306720
Cash in Hand 79429 79429 79429 79429 79429 79429
Cash Surplus, Finance Available 2272966 2776761 3306355 4168879 5031404 5893928
Securities 0 0 0 0 0 0
2. Total Fixed Assets, Net of Depreciation 1696034 1536284 1376534 1216784 1057034 897284
Fixed Investment 2494784 2494784 2494784 2494784 2494784 2494784
Construction in Progress 0 0 0 0 0 0
Pre-Production Expenditure 124739 124739 124739 124739 124739 124739
Less Accumulated Depreciation 923489 1083239 1242989 1402739 1562489 1722239
3. Accumulated Losses Brought Forward 0 0 0 0 0 0
4. Loss in Current Year 0 0 0 0 0 0
TOTAL LIABILITIES 4727510 5071555 5441399 6144174 6846948 7549722
5. Total Current Liabilities 306720 306720 306720 306720 306720 306720
Accounts Payable 306720 306720 306720 306720 306720 306720
Bank Overdraft 0 0 0 0 0 0
6. Total Long-term Debt 614263 307131 0 0 0 0
Loan A 614263 307131 0 0 0 0
Loan B 0 0 0 0 0 0
7. Total Equity Capital 1228525 1228525 1228525 1228525 1228525 1228525
Ordinary Capital 1228525 1228525 1228525 1228525 1228525 1228525
Preference Capital 0 0 0 0 0 0
Subsidies 0 0 0 0 0 0
8. Reserves, Retained Profits Brought Forward 1970088 2578002 3229179 3906154 4608928 5311703
9. Net Profit After Tax 607914 651176 676975 702774 702774 702774
Dividends Payable 0 0 0 0 0 0
Retained Profits 607914 651176 676975 702774 702774 702774