Right Edible Oil Processors PLC

Pro-forma Invoice Selection

Exechang rate as at Dec.26, 2014

Currency Buying Selling
USD 20.0917 20.49
EURO 24.5902 25.08

1 Machinery & Equipments

1.1. Cooking oil Refinerry machine
Sr. Qty Unit Price Total Cost
Name of Suppliers Description Remark
No. (set) (USD) (USD)

HENAN HUATAI
CEREALS & OIL 50TPD Cooking oil
1 1 351,925 351,925 Selected
MACHINERY CO. Refinerry machine
LTD

HENAN HUATAI
CEREALS & OIL Oil Filling
2 1 89,978 89,978 Selected
MACHINERY CO. Production line
LTD

HENAN HUATAI Out Dorr Equipment

CEREALS & OIL List (Compressor,
3 1 132,499 132,499 Selected
MACHINERY CO. Boiler, Water Pump,
LTD Cooling Tower etc)
Total 574,402

1.2 Cost Build Up

Sr. Unit of Quantity Unit Price
Elements Total Cost
No. Msrt. (set) (USD)
A. Cost of Item in Foreign Currency
1 Material cost at FOB Pcs 1 574,402 574,402
1.1 Plus: - Freight (3% FOB) 17,232
Plus: - Installation and Commissioning (2%
1.2 8,838
FOB)

Plus:- Port handling, clearing, forwarding

1.3 5,744
and other local costs (1% FOB)
Total at Djibouti Port 606,216
2 FOB Price in Equivalent ETB 12,423,496
2.1 Plus:- Bank Charges (3 %FOB) 372,705
2.2 Plus:- sea Insurance (1% FOB)a 124,235
2.4 Plus:-Inland transport (1%) 124,235
Total Cost of Cooking oil Refinerry
13,044,671
machine (ETB)
 Right Edible Oil Processors PLC
Pro-forma Invoice Selection

1.3 Cosmetic Liquid Product Filling Line

Sr. Qty Unit Price Total Cost
Name of Suppliers Description Remark
No. (set) (USD) (USD)
NPACK (CHINA) Cosmetic Liquid
1
LTD Product Filling Line:-
NP-VF Automatic
Piston Filling
1 34,500 34,500
Machine Pneumatic
driven 12 heads
NP-LC Automatic
Spindle Screw 1 13,500 13,500
Capping Machine
NP-TS Automatic Rejected
Double sides labling 1 12,500 12,500
Machine
lnk jet printer 1 4,500 4,500
conveyor system (in
8 250 2,000
Meter)

Total Cost (USD) 67,000

1.4 Boiler
Sr. Qty Unit Price Total Cost
Name of Suppliers Description Remark
No. (set) (USD) (USD)
A. Cost of Item in Foreign Currency
Xinxiang Dawn oil 4TPH electric Steam
1 1 75,617 75,617.00
Equipment Co.Ltd Boiler
Rejected
Ruian Grin & Oil
2 Air Compressor 1 1,517 1,517.00
Machinery Factory
Total Cost 77,134
2 Vehicles

Sr. Qty Unit Price

Name of Suppliers Description Total Cost (Birr) Remark
No. (set) (Birr)
ISUZU FSR WITH
BODY & GRILL
1 KAKI PLC 1 1,350,000 1,350,000 Selected
(SPONDA &
SEBERA
TOYOTASPONDA)
HIACE
2 KAKI PLC 1 900,000 900,000 Selected
MODEL 2014
Sub Total 2,250,000

Tittle transfer fee (2%) 45,000

Total Cost of Vehicle (ETB) 2,295,000

 Right Edible Oil Processors PLC
Pro-forma Invoice Selection
3 Office Furniture and Equipments

Sr. Unit Price Incl.

Description Units of Mrmt Qty VAT (Birr)
Total Price Supplier Remark
No.
1 Computer set 4 13,340 53,360 from previous study
2 Copy Machine pcs 1 29,843 29,843 Omedad PLC
Selected
3 Printer & Fax pcs 1/1 12,198 12,198 from previous study
4 Scanner- HP 2710 pcs 1 3,220 3,220 from previous study
5 Desk- Executive HQ pcs 9 3,174 28,566
6 Swivel- High Back pcs 3 2,185 6,555
7 Swivel- medium Back pcs 6 2,013 12,075
8 Swivel- Secretary HQ pcs 2 2,013 4,025 Omedad PLC Selected
9 Filling Cabinet- HQ pcs 2 3,968 7,935
10 Book Shelf- HQ pcs 3 2,530 7,590
11 Guest Chair pcs 12 1,898 22,770
12 Cash Save pcs 2 5,290 10,580 from previous study
Total Cost of Office Furniture and Equipments (Birr) 198,717

4 Packing Material

Total
Sr. Size (in Unit Price
Description Supplier Units of Meas. Quantity Amount
No. lt.) (Birr)
(Birr)
1 For 1 Litter packed bekoji & digelu 1 Litter 1 2 2
2 For 3 Litter packed Mountains Spring 3 Litter 1 5 5
3 For 5 Litter packed Water PLC 5 Litter 1 9 9

5 Raw Materials

Unit Price
Sr. Unit of Unit Price VAT (15%)
Description Supplier Including VAT Remark
No. Msrt. (Birr) (Birr)
(Birr)
1 Crude Niger Seed litter 32 5 37
2 Crude lin Seed litter 30 5 35
Kelemua Oil Flitering Selected
3 Crude Cotton Seed litter 27 4 31
4 Crude Rape Seed litter 32 5 37
 Right edible oil Processors PLC
Investment Cost
1 Building and Construction

Number
Ser. Total Building Executed Planned Total Cost
Description of
No. Area (m2) Value (Birr) Cost (Birr) (In Birr)
Building
Planned to be constructed
1 OIL REFINARY & LABORATORY 1 1360.00 M2 - 2,887,587 2,887,587
2 STORE 1 1350.00 M2 - 2,558,916 2,558,916
5 WATER TREATMENT BLD 1 141.12 m2 - 713,056 713,056
6 CHANGING & SHOWER 1 62.40 m2 - 382,974 382,974
Total - 6,542,532 6,542,532
Planned to be constructed in the future
1 BOTTLING & PACKING * 1 640.00 M2 - 1,509,777 1,509,777
2 OFFICE* 1 1109.62 m2 - 3,365,135 3,365,135
Total - 4,874,912 4,874,912
* The cost of Bottling & Packing house building is excluded since we assumed that the oil Refinary and Labratory room
is enough for the production process and pcking since the selected machinery is continuous and ended in refinery room.
Cost of office is also excluded and they use rental office.
2 Processing Plant
2.1 Machineries and Equipments
Planned
Ser.
Description Model Quantity Unit Value Total Value
No.
/Brand (set) (Birr) (Birr)
50TPD Cooking oil Refinerry
1 machine 1
2 Oil Filling Production line 1 13,044,671 13,044,671
Out Dorr Equipment List
3 (Compressor, Boiler, Water Pump,
Cooling Tower etc)
Total 13,044,671

5 Vehicles

Planned
Ser.
Description Unit Cost Total Cost
No. Quantity
(Birr) (Birr)
ISUZU FSR WITH BODY & GRILL
1 1 1,350,000 1,350,000
(SPONDA & SEBERA SPONDA)
2 TOYOTA HIACE MODEL 2014 1 900,000 900,000
Sub Total 2,250,000 2,250,000
Transfer fee (2%) 45,000
Total 2,295,000

6 Office Equipment & Furniture

Planned
Ser.
Description Existing Required Unit Price Total
No.
Quantity (Birr) Cost (Birr)
1 Computer 4 13,340.0 53,360
 Right edible oil Processors PLC
Investment Cost
2 Copy Machine 1 29,842.5 29,843
3 Printer & Fax 1/1 12,198.0 12,198
4 Scanner- HP 2710 1 3,220.0 3,220
5 Desk- Executive HQ 9 3,174.0 28,566
6 Swivel- High Back 3 2,185.0 6,555
7 Swivel- High Back 6 2,012.5 12,075
8 Swivel- Secretary HQ 2 2,012.5 4,025
9 Filling Cabinet- HQ 2 3,967.5 7,935
10 Book Shelf- HQ 3 2,530.0 7,590
11 Guest Chair 12 1,897.5 22,770
12 Cash Save 2 5,290.0 10,580
Total - 198,717

7 Electric Installation

Planned Total
Ser Quantity
No
Description Installation Quantity Supply Installation
Supply
Cost (Birr) (KWh) Cost (Birr)
(KWh)
1 280 1,082,019 1,082,019
Total 1,082,019 1,082,019

8 Waterhole

Existing Planned Total

Ser
No
Description Total Cost
Quantity Cost (Birr) Quantity Cost (Birr)
(Birr)
1 Waterhole 1 600,944 - 600,944
Total 600,944 - 600,944

9 Land Lease and Compensation Fee ………………………………………………… Birr 1,263,735

Summary of Investment Cost

Existing Planned Total Percentage

Ser.
Description Investment Investment Investment Proportion
No.
(Birr) (Birr) (Birr) (%)
1 Building and Construction - 6,542,532 6,542,532
2 Machinery & Equipments -Processing Plant - 13,044,671 13,044,671
3 Vehicles - 2,295,000 2,295,000
5 Office Furniture & Equipments - 198,717 198,717 67.42%
7 Electricity Installation - 1,082,019 1,082,019
8 Waterhole 600,944 - 600,944
9 Land Lease and Compensation Fee 1,263,735 - 1,263,735
Sub-total 1,864,679 23,162,939 25,027,618
9 Pre-production Cost 286,727 - 286,727
10 Pre-production Interest - 707,460 707,460 2.68%
Sub-total 286,727 707,460 994,187
11 Working Capital - 11,101,807 11,101,807
29.90%
Sub-total - 11,101,807 11,101,807
Grand Total 2,151,406 34,972,206 37,123,612 100.00%
ble oil Processors PLC
vestment Cost
ble oil Processors PLC
vestment Cost

-
 Right Edible Oil Processors PLC
Assumptions Used In the Financial Study
Assumptions used in this study are taken from the project specific database disseminated by the Research
Process. Other cost items such as Building & Construction cost, machinery & equipment cost, office
furniture & equipments costs are taken from the bank's Civil and Mechanical Engineer's Report. Moreover, in
the absence of research reports, assumptions used by the bank to appraise other projects have been
considered.
1k of Crude & refined Oil=1.07-1.09Lt for different oil type or AVG. 1.08
http://convert-to.com/edible-cooking-oils-weight-volume-measures-conversion

1 Capacity
1.1 The Company use Bach production system
1.2 Working days per year 300 days
1.3 Number of shifts 1
1.4 Number of working
Production Estimate hours/shift
at full capacity/ 8 hrs
1.5 Production Capacity
Theoretical capacity 50 Ton/day 18,000 lit per day 2,250 lit per hour

1.6 5,400,000 lit per year

*The production capacity is determine based on the filling machine capacity since the refine line has higher capacity.

Ser. Product mix Total Production

Products Unit
No. (%) (liter)

1 Refined Cotton seed Oil liter 18% 972,000

2 Refined Rape seed Oil liter 18% 972,000
3 Refined Niger seed Oil liter 18% 972,000
4 Refined Linseed Oil liter 18% 972,000
5 Safflower Seed Oil liter 14% 756,000
6 Sesame Oil liter 14% 756,000
Total 100% 5,400,000

1.5 Production Estimate at different Years and capacities

97% Recovery
Ser. rate (crude oil Year 1 Year 2 Year 3 up to 10
Products Unit to
No.
refined oil) 60% 65% 70%
1 Refined Cotton seed Oil liter 942,840 565,704 612,846 659,988
2 Refined Rape seed Oil liter 942,840 565,704 612,846 659,988
3 Refined Niger seed Oil liter 942,840 565,704 612,846 659,988
4 Refined Linseed Oil liter 942,840 565,704 612,846 659,988
5 Safflower Seed Oil liter 942,840 565,704 612,846 659,988
6 Sesame Oil liter 942,840 565,704 612,846 659,988
Total 5,657,040 3,394,224 3,677,076 3,959,928

2 Revenue Estimation from refined Eddible Oil

2.1 Revenue @ 100% Capacity
Total Production COMMODITY
Ser. Selling Price/Unit Total Revenu
Products Unit at 100% Capacity SELLING
No. (Birr/ Litter) (Birr)
(Liter) PRICE

1 Refined Cotton seed Oil liter 54 972,000 52,196,400 41

2 Refined Rape seed Oil liter 54 972,000 52,196,400 41
3 Refined Niger seed Oil liter 54 972,000 52,196,400 41
4 Refined Linseed Oil liter 54 972,000 52,196,400 41
5 Safflower Seed Oil liter 54 756,000 40,597,200 41
6 Sesame Oil liter 54 756,000 40,597,200
Refined Linseed Oil 5,400,000 289,980,000
Source: Team survey on Modjo Edible Oil Factory
Note: Under team survey on Modjo Edible Oil Factory the factory gate price of Refined Oil is in between 57-63 birr per liter. However, we take birr 54 per liter by give above 5%
margin for market breakage.
 Right Edible Oil Processors PLC
Assumptions Used In the Financial Study
2.2 Revenue at attainable Capacity

Ser.
Products type Year 1 Year 2 Year 3 up to 10
No.
1 Refined Cotton seed Oil 30,378,305 32,909,830 35,441,356
2 Refined Rape seed Oil 30,378,305 32,909,830 35,441,356
3 Refined Niger seed Oil 30,378,305 32,909,830 35,441,356
4 Refined Linseed Oil 30,378,305 32,909,830 35,441,356
5 Safflower Seed Oil 30,378,305 32,909,830 35,441,356
6 Sesame Oil 30,378,305 32,909,830 35,441,356
Total 182,269,829 197,458,981 212,648,134

2.3 Revenue from Refined Oil byproducts ( Soap stock)

2.3.1. Production of Soap Stock at attainable Capacity
Oil Production (ton) Percentage
Ser.
Products type Share of
No. Year 1 Year 2 Year 3 up to 10 Soap Stock
1 Refined Cotton seed Oil 524 567 611 0.60%
2 Refined Rape seed Oil 524 567 611 0.50%
3 Refined Niger seed Oil 524 567 611 0.30%
4 Refined Linseed Oil 524 567 611 0.43%
5 Safflower Seed Oil 524 567 611 0.30%
6 Sesame Oil 524 567 611 0.43%
Total 3,143 3,405 3,667

soap stock Production (ton)

Ser.
Products type
No. Year 1 Year 2 Year 3 up to 10
1 Refined Cotton seed Oil 3 3 4
2 Refined Rape seed Oil 3 3 3
3 Refined Niger seed Oil 2 2 2
4 Refined Linseed Oil 2 2 3
5 Safflower Seed Oil 2 2 2
6 Sesame Oil 2 2 3
Total 13 15 16

2.3.2. Revenue from Soap Stock at attainable Capacity

70% share of Distilled fatty acid

Revenue from Byproduct
Ser. (to be Sold)
Products type
No. Price Qty produce in ton
Year 1 Year 2 Year 3 up to 10
(ton) (year)
1 Refined Cotton seed Oil 2 2 3 Year 1 15,000 9
2 Refined Rape seed Oil 2 2 2 Year 2 15,000 10
3 Refined Niger seed Oil 1 1 1 Year 3-10 15,000 11
4 Refined Linseed Oil 2 2 2
5 Safflower Seed Oil 1 1 1
6 Sesame Oil 2 2 2
Total 9 10 11

2.4 Summary of Rvenue

S.No Description Year 1 Year 2 Year 3 up to 10
1 Revenue from refined Oil 182,269,829 197,458,981 212,648,134
2 Revenue from Soap stock 140,577 152,292 164,007
Total 182,410,406 197,611,273 212,812,141
 Right Edible Oil Processors PLC
Assumptions Used In the Financial Study
3 Raw Material Cost
3.1 Cost of Crude Oil at 100% Capacityutilization.
As per the bank research process Commodity study on Refied edible oil production, 2014 Impurities of raw material and produ
store loss are assumed as follows:-

i Refining loss 3%
ii loading/unloading loss 0.1%

Required crude Oil at different capacities

Year 1 Year
Total amt. of
Refining Loss loading/unloading crude oil Pruduction Refining Loss
Ser. Pruduction (Lt) loss required/year (Lt)
No. Items 3% 0.10% (Lt) 3%
1 Refined Cotton seed Oil 565,704 16,971 566 583,241 612,846 18,385
2 Refined Rape seed Oil 565,704 16,971 566 583,241 612,846 18,385
3 Refined Niger seed Oil 565,704 16,971 566 583,241 612,846 18,385
4 Refined Linseed Oil 565,704 16,971 566 583,241 612,846 18,385
5 Safflower Seed Oil 565,704 16,971 566 583,241 612,846 18,385
6 Sesame Oil 565,704 16,971 566 583,241 612,846 18,385
Grand Total Cost 3,394,224 101,827 3,394 3,499,445 3,677,076 110,312

Cost of Crude Oil @ differenf Capacity

Ser. Price of Crude Oil Year l Year 2 Year3-

Products type Total Cost
No. (Lt) in birr Required Amt Required Amt Total Cost Required Amt
(Lt) (bir) (Lt) (bir) (Lt)
1 Crude Niger Seed 31 583,241 18,109,628 631,844 19618763 680,448
2 Crude lin Seed 37 583,241 21,463,262 631,844 23251868 680,448
3 Crude Cotton Seed 37 583,241 21,463,262 631,844 23251868 680,448
4 Crude Rape Seed 35 583,241 20,121,808 631,844 21798626 680,448
5 Crude Safflower Seed 37 583,241 21,463,262 631,844 23251868 680,448
6 Crude Sesame 37 583,241 21,463,262 631,844 23251868 680,448
Total 3,499,445 124,084,485 3,791,065 134,424,859 4,082,686
Note: We have taken the maximum cost of Crude Oil among at hand for those pro forma invoices are not submitted.

3.2 Refining edible oil purification chemicals & acid

Per ton of refined oil
Ser. Types of chemical Unit of meas. Price/Kg
No (birr) Cotton seed Rape seed Niger seed Lin seed
Total Production (ton)
1 Horto Phosphoric acid Kg 69 0.2 0.2
2 Caustic soda Kg 24 26.0 22.0 10.0 10.0
3 Bleaching earth Kg 16 40.0 46.0 20.0 20.0
4 Citric acid Kg 36 3.0 1.5
Total

3.3. Water Treatment Chemicals

3.3.1. Cost of Chemical Per Ton Processed Water

Cost per ton

Price
Types of chemical Unit of meas. processed
Ser. (Kg) Required rate per water
No ton process water
Salt (steam generation boiler water
1 treatment) kg 2.5 2 5
2 Na, AL, Silicate kg 15 15 225
3 Common salt kg 2.5 2 5
4 Caustic soda kg 18 10 180
5 Calcium hydroxide kg 6.5 4 26
 Right Edible Oil Processors PLC
Assumptions Used In the Financial Study

3.3.2. Water Requirement at Different Capacity and Total cost of Water Treatment Chemicals

Required Water (ton) (20% of Processed Oil)

Ser. Types of chemical Year 1 Year 2 Year 3 up to 10
No Salt (steam generation boiler water 629 681 733
1 treatment) 3,143 3,405 3,667
2 Na, AL, Silicate 141,426 153,212 164,997
3 Common salt 3,143 3,405 3,667
4 Caustic soda 113,141 122,569 131,998
5 Calcium hydroxide 16,343 17,704 19,066
Total 277,195 300,295 323,394
Source: Team survey from Addis Modjo Edible Oil Factory & research Commodity study

3.5. Soap stock splitting Chemical

Required
Price Unit of
Types of oil crude oil Types of acid rate per ton Total requirment
(birr) measurement
of soap stock
All crude oil Sulfuric acid 30 kg 6
Cotton seed crude oil kg 10

Year 1 Year 2
Clearing and sanitation chemical (disinfectant)
Caustic soda (5% concentration) 49 kg 0.125 1.67 1.81
Largo 30 Lt 0.25 3.35 3.63
Total
Source: Team survey from Addis Modjo Edible Oil Factory & research Commodity study

3.6 Packing Materials

3.6.1 Packing
3.6.1.1 Empty Bottle and Jerkin

Ser. Total Cost

Packing Material Unit Measm. Unit price (birr) Price of Bottle/Lt
No. (birr)
1 1 liter bottle PCs 2 2
2 3 liter bottle PCs 5 2 6,180,316
3 5 liter bottle PCs 9 2
Average 5 2

3.6.1.2. Bottle and Jerkin Cap

Required rate
S. No. Description Unit of meast Total Required Unit price/ Birr Total Cost
per plastic bottle
1 For of 1 liter Pc 1.001 0.3500
2 For of 3 liter Pc 1.001 3,397,618.22 0.3100 1,200,492
3 For of 5 liter Pc 1.001 0.4000
Average 1.0010 0.3533

3.6.2 Labeling
Required rate
S. No. Description Unit of meas. Total Required Unit price/ Birr Total Cost
per plastic bottle
1 For of 1 liter Pc 1.001 0.10
2 For of 3 liter Pc 1.001 3,397,618.22 0.88 2,304,718
3 For of 5 liter Pc 1.001 1.06
Average Required rate 1.001 0.678

3.6.3 Plastic bottle packing Carton

 Right Edible Oil Processors PLC
Assumptions Used In the Financial Study
No. of Unite price Total Total Cost
S. No. Description Unit of meas.
Bottle/Carton (birr) Required (Birr)
1 For of 1 liter pcs 12 10.85
2 For of 3 liter pcs 6 9.50 462,849 4,890,768
3 For of 5 liter pcs 4 11.35
Average 7 10.57

3.7 Scotch tap and Coding ink

Packed rate*
Total Qty Total Cost
S. No. Description Unit of meas. and Unit price/ Birr
Required (birr)
Required Rte**
1 Scotch tap pcs 60 220 7,714 1,697,112
2 Coding ink Lt 10,000 5 113 566
Total 1,697,678
* 1 roll of scotch tap will packed 60 carton
** 1 liter of coding ink will used for 10000 bottle and in average 1 bottle packed 3 liter of oil

3.8 Electric Consumption

The plant’s electric consumption level at full capacity per annum is estimated to be 280 kWh
Thus, the cost of power consumption at capacity rate is determined as follows: -

Year Capacity Rate Annual Electric Cost/Kwh Service Total Electric

S.No (%) Consumption Charge Cost
(Kwh)

1
1 60% 50,400 0.5691 230.28 28,913

2
2 65% 54,600 0.5691 230.28 31,303

3
3 and then after 70% 58,800 0.5691 230.28 33,693

3.9 Summary of Direct Cost

S.No Description Year 1 Year 2 Year 3 up to 10
1 Crude Eddible Oil 124,084,485 134,424,859 144,765,233
Refining edible oil purification
2 chemicals & acid 12,945,507 13,592,783 14,272,422
3 Water Treatment Chemicals 277,195 300,295 323,394
4 Soap stock splitting Chemical 785 800 816
5 Packing Materials 16,273,972 17,087,670 17,942,054
6 Electric Consumption 28,913 31,303 33,693
Total 153,610,857 165,437,710 177,337,612

3.10 Wages and Salaries

Ser. Position No. of Employees Monthly

No. Salary(Birr)

1 General Manager
General Manager 1 7,296 87,552
Executive Secretary 1 2,761 33,132
2 Quality Mgt. R & D
Quality Management Executive 1 5,000 60,000
3 HRM & Adm. Dept.
Sr. HRM and Administration Officer 1 4,166 49,992
General Construction Worker 1 2,500 30,000
Receptionist/Telephone Operator 1 1,500 18,000
Messenger 1 1,200 14,400
Driver IV 1 1,556 18,672
4 Finance Dept.
Finance Manager
Accounting Officer, Cost and 1 5,496 65,952
Budget 1 3,171 38,052
 Right Edible Oil Processors PLC
Assumptions Used In the Financial Study
Cashier I & Customer
Marketing 1 1,556 18,672
Development
5 Customer Dept.
Development Chain
Manager 1 5,496 65,952
Sales/Marketing Representative 1 2,750 33,000
Sr. Sales Representative
Purchasing Assistant (Local & 1 3,200 38,400
Foreign) 1 1,816 21,792
Jr.CS & Internal Sales 1 1,556 18,672
Production and Technical
6 Production and Technical Dept.
Department Manager 1 5,496 65,952
Sr. Production and Technical Officer
Production Exec, Ref., Margarine, 1 4,786 57,432
bottling Plant 1 3,171 38,052
Technical Exec., Electro-Mechanical
Plant & utilities 1 3,171 38,052
Workshop 1 3,171 38,052
Operator, Solvent Extraction
Hydrogen, Ref., Bottling, 1 2,081 24,972
Margarine unit 1 2,081 24,972
Laboratory technician 1 3,171 38,052
Operator, boiler 1 2,081 24,972
Electrician 1 2,081 24,972
MechanicOperator, Hydrogen, Ref.,
Assistant 1 2,081 24,972
Bottling, Margarine
Assistant Operator, (Boiler & 1 1,556 18,672
Utility) 1 1,556 18,672
Daily Labourers 15 1,000 180,000
Guard 2 1,000 24,000
Total 46 89,503 1,254,036
* it increases by 5% per year

3.11 Fuel, Oil and Lubricants

Traveling Distance
Fuel Consumption Total Fuel Unit Cost per
S.No. Type of Vehicle per yr per vehicle
(km/liter) Requirement (liters) liter (Benzin)
Total Cost of fule Oil and lubricant
(km)
ISUZU FSR WITH BODY & GRILL
60,000 4 15,000 18.17 272,550 27,255
1 (SPONDA & SEBERA SPONDA)
TOYOTA HIACE MODEL 2014
30,000 7 4,286 18.17 77,871 7,787
2

90,000 350,421 35,042

Total
A Fule- the cost is assumed to be increase by 5% per annum
B Oil and lubricant- 10% of fuel cost and the cost is assumed to be increase by 5% per annum

3.12 Insurance

Sr.No Description Value Insurance Insurance

(Birr) Rate(%) Cost(Birr)
1 Building and Construction 6,542,532 0.75% 49,069
Machinery & Equipments -Processing
2 13,044,671 0.75% 97,835
Plant
3 Vehicles 2,295,000 2.5% 57,375
4 Office Furniture & Equipments 198,717 0.75% 1,490
5 Electricity Installation 1,082,019 0.75% 8,115
6 Waterhole 600,944 0.75% 4,507
Total 23,763,883 218,392

5.10 Repair and Maintenance

Repair & Repair and
Value
Sr.No Description Maintenance Maintenance Cost
(In Birr)
Rate(%) (Birr)
1 Building and Construction 6,542,532 3% 196,276
2 Machinery & Equipments -Processing
13,044,671 652,234
Plant 5%
3 Vehicles 2,295,000 10% 229,500
4 Office Furniture & Equipments 198,717 5% 9,936
5 Electricity Installation 1,082,019 2% 21,640
6 Waterhole 600,944 10% 60,094
Total 23,162,939 1,169,680
 Right Edible Oil Processors PLC
Assumptions Used In the Financial Study

3.13 Other Costs

Cost per Month Cost per Year
Item Description
(Birr) (Birr)
Land Lease Expense* - -
Travel & Perdium(5% Annual Salary) 5,225 62,702
Employees Medical & Insurance Benefit (10%
of annual Salary) 125,404
Advertisement Cost(1% Annual sales) 152,009 1,824,104
Uniform & Protective(For 46 Person Each 1200 Bi - 69,000
Office Supplies - 50,000
Telephone, Postage and Internet - 36,000
Audit and Legal Fee - 25,000
Administrative Expense 5,000 60,000
Cleaning Expense 2,000 24,000
Miscelaneous Expense 60,000
Utilities 50,000
Office Rental Cost 2,300 27,600
*The land lease payment is Paid in advance for farmers compensation.

3.14 Spare Parts

Ser. Investment cost Spare Parts &
Description Rate(%)
No. (Birr) Consumables (Birr)
1 Machinery & Equipment 13,044,671 4% 521,787
2 Vehicle 2,295,000 4% 91,800
Total 15,339,671 613,587

5.13 Deprciation & Amortization

Depreciation Annual
S.No. Description Original Cost
Rate Depreciation

1 Building and Construction 6,542,532 5% 327,127

Machinery & Equipments -Processing 10% 1,304,467
2 Plant 13,044,671
3 Vehicles 2,295,000 20% 459,000
Office Furniture & Equipments 20% 39,743
4 198,717
Electricity Installation 10% 108,202
5 1,082,019
Waterhole 10% 60,094
6 600,944
Land Lease and Compensation Fee 4% 50,549
7 1,263,735
8 Pre-operating cost 286,727 10% 28,673

9 Pre-operating interest 0 10% -

Total 25,314,345 2,377,855

3.15 Pre - Operating Costs and Pre-operating interest

Ser. Description Cost (Birr)

No.
1 Per-production expense 286,727
2 Pre-operating interest 707,460

Total 994,187

3.16 Dividened/Withdrwal 40% of net profit

 Right Edible Oil Processors PLC
Assumptions Used In the Financial Study

60,000.00
14,400.00
42,000.00
8,400.00
30,000.00
18,000.00
 Right Edible Oil Processors PLC
Assumptions Used In the Financial Study
21,600.00
4,800.00
24,000.00
5,400.00
4,800.00
30,000.00
18,000.00
12,000.00
8,400.00
42,000.00
8,400.00
30,000.00
18,000.00
10,800.00
30,000.00
32,400.00
42,000.00
30,000.00
64,800.00
30,000.00
10,800.00
10,800.00
42,000.00
30,000.00
14,400.00
10,800.00
759,000.00
Total revenue
140,577
152,292
164,007
 roduction &

Year 2 Year 3-10

Total amt. of crude Total amt. of

loading/
oil required/year
Pruduction Refining Loss loading/ crude oil
unloading loss (Lt) unloading loss required/year
(Lt)
0.10% 3% 0.1% (Lt)
613 631,844 659,988 19,800 660 680,448
613 631,844 659,988 19,800 660 680,448
613 631,844 659,988 19,800 660 680,448
613 631,844 659,988 19,800 660 680,448
613 631,844 659,988 19,800 660 680,448
613 631,844 659,988 19,800 660 680,448
3,677 3,791,065 3,959,928 118,798 3,960 4,082,686

ear3-10
Total Cost
(bir)
21,127,899
25,040,473
25,040,473
23,475,443
25,040,473
25,040,473
144,765,233

Total Cost
Total Requirment
(birr)
Ground nut
3,143
1,257 86,741
5.0 229,424 5,506,186
10.0 427,421 6,838,733
14,143 513,848
672,245 12,945,507

26 25
 #REF! #REF!

Total Cost
ent
(birr)
#REF!
48 289 289 289
31 314 314 314
603 603 603
Year 3 up to
Year 3 up to 10 Year 1 Year 2
10
1.95 82 89 96
3.90 100 109 117
785 800 816
Total Cost
(Birr)

299,805

85,659

385,464
 Right Edible Oil Processors PLC
Operating cost
Project Years
Description
1 2 3 4 5 6 7 8 9 10
A.Direct Cost
Local Raw Material (Crude Oil) 124,084,485 134,424,859 144,765,233 144,765,233 144,765,233 144,765,233 144,765,233 144,765,233 144,765,233 144,765,233
Refined Edibble Oil Production, Water treatment
chemicals & Soap stock splitting Chemicals 13,223,488 13,893,878 14,596,632 14,596,632 14,596,632 14,596,632 14,596,632 14,596,632 14,596,632 14,596,632
Packing Materials 16,273,972 17,087,670 17,942,054 17,942,054 17,942,054 17,942,054 17,942,054 17,942,054 17,942,054 17,942,054
Marketing costs 1,824,104 1,824,104 1,824,104 1,824,104 1,824,104 1,824,104 1,824,104 1,824,104 1,824,104 1,824,104
Electric Consumption 28,913 31,303 33,693 33,693 33,693 33,693 33,693 33,693 33,693 33,693
Sub Total 155,434,962 167,261,814 179,161,716 179,161,716 179,161,716 179,161,716 179,161,716 179,161,716 179,161,716 179,161,716
B.Indirect Costs
Land Lease Expense* - - - - - - - - - -
Wages and Salaries 1,254,036 1,316,738 1,382,575 1,451,703 1,524,289 1,600,503 1,680,528 1,764,555 1,852,782 1,945,421
Employees Medical & Insurance Benefit 125,404 131,674 138,257 145,170 152,429 160,050 168,053 176,455 185,278 194,542
Uniform & Protective(For 46 Person
Each 1200 Birr) 69,000 72,450 76,073 79,876 83,870 88,063 92,467 97,090 101,944 107,042
Telephone, Postage and Internet 36,000 37,800 39,690 41,675 43,758 45,946 48,243 50,656 53,188 55,848
Administrative Expense 60,000 63,000 66,150 69,458 72,930 76,577 80,406 84,426 88,647 93,080
Utilities 50,000 52,500 55,125 57,881 60,775 63,814 67,005 70,355 73,873 77,566
Stationary and P.T.T 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000
Travel and Perdiem 62,702 65,837 69,129 72,585 76,214 80,025 84,026 88,228 92,639 97,271
Insurance 218,392 218,392 218,392 218,392 218,392 218,392 218,392 218,392 218,392 218,392
Repair and Maintenance 1,169,680 1,169,680 1,169,680 1,169,680 1,169,680 1,169,680 1,169,680 1,169,680 1,169,680 1,169,680
Spare parts 613,587 613,587 613,587 613,587 613,587 613,587 613,587 613,587 613,587 613,587
Legal & Audit Fee 25,000 26,250 27,563 28,941 30,388 31,907 33,502 35,178 36,936 38,783
Miscellaneous Expenses 60,000 63,000 66,150 69,458 72,930 76,577 80,406 84,426 88,647 93,080
Office Rental Cost 27,600 28,980 30,429 31,950 33,548 35,225 36,987 38,836 40,778 42,817
Sub Total 3,821,400 3,909,887 4,002,798 4,100,355 4,202,790 4,310,347 4,423,281 4,541,862 4,666,373 4,797,108
Total 159,256,362 171,171,701 183,164,514 183,262,071 183,364,506 183,472,063 183,584,997 183,703,578 183,828,088 183,958,824
 Right Edible Oil Processors PLC
Working capital Determination
Project Years
Description Period
0 1 2 3 4 5 6 7 8 9 10
A.Direct Cost
Local
RefinedRaw Material
Edibble Oil (Crude Oil)
Production, 10 days 4,136,150 4,136,150 4,480,829 4,825,508 4,825,508 4,825,508 4,825,508 4,825,508 4,825,508 4,825,508 4,825,508
Water treatment chemicals & Soap 3 month 4,068,493 4,068,493 4,271,918 4,485,513 4,485,513 4,485,513 4,485,513 4,485,513 4,485,513 4,485,513 4,485,513
stock
Packingsplitting Chemicals
Materials 1 month 1,356,164 1,356,164 1,423,973 1,495,171 1,495,171 1,495,171 1,495,171 1,495,171 1,495,171 1,495,171 1,495,171
Marketing costs 1 month 152,009 152,009 152,009 152,009 152,009 152,009 152,009 152,009 152,009 152,009 152,009
Electric Consumption 1 month 2,409 2,409 2,609 2,808 2,808 2,808 2,808 2,808 2,808 2,808 2,808
Sub Total 9,715,225 9,715,225 10,331,336 10,961,009 10,961,009 10,961,009 10,961,009 10,961,009 10,961,009 10,961,009 10,961,009
Land Lease Expense* 1year - - - - - - - - - - -
Wages and Salaries 1 month 104,503 104,503 109,728 115,215 120,975 127,024 133,375 140,044 147,046 154,399 162,118
Employees Medical & Insurance
1 month 10,450 10,450 10,973 11,521 12,098 12,702 13,338 14,004 14,705 15,440 16,212
Benefit
Uniform & Protective(For 46
1 Year 69,000 69,000 72,450 76,073 79,876 83,870 88,063 92,467 97,090 101,944 107,042
Person Each 1200 Birr)
Telephone, Postage and Internet 1 month 3,000 3,000 3,150 3,308 3,473 3,647 3,829 4,020 4,221 4,432 4,654
Administrative Expense 1 month 5,000 5,000 5,250 5,513 5,788 6,078 6,381 6,700 7,036 7,387 7,757
Utilities 1 month 5,000 5,000 5,250 5,513 5,788 6,078 6,381 6,700 7,036 7,387 7,757
Stationary and P.T.T 1 month 218,392 218,392 218,392 218,392 218,392 218,392 218,392 218,392 218,392 218,392 218,392
Travel and Perdiem 1 month 5,225 5,225 5,486 5,761 6,049 6,351 6,669 7,002 7,352 7,720 8,106
Insurance 1 Year 218,392 218,392 218,392 218,392 218,392 218,392 218,392 218,392 218,392 218,392 218,392
Repair and Maintenance 6 month 584,840 584,840 584,840 584,840 584,840 584,840 584,840 584,840 584,840 584,840 584,840
Spare parts 3 month 153,397 153,397 153,397 153,397 153,397 153,397 153,397 153,397 153,397 153,397 153,397
Legal & Audit Fee 1 month 2,083 2,083 2,188 2,297 2,412 2,532 2,659 2,792 2,931 3,078 3,232
Miscellaneous Expenses 1 month 5,000 5,000 5,250 5,513 5,788 6,078 6,381 6,700 7,036 7,387 7,757
Office Rental Cost 1 month 2,300 2,300 2,415 2,536 2,663 2,796 2,935 3,082 3,236 3,398 3,568
Sub Total 1,386,582 1,386,582 1,397,160 1,408,267 1,419,929 1,432,175 1,445,032 1,458,533 1,472,709 1,487,593 1,503,222
Total 11,101,807 11,101,807 11,728,496 12,369,276 12,380,938 12,393,183 12,406,041 12,419,542 12,433,717 12,448,602 12,464,231
Incremental In Working Capital - 626,689 640,780 11,662 12,245 12,858 13,501 14,176 14,884 15,629
Existing Working Capital -
Proposed Working Capital 11,101,807
Note: Working Capital for local raw material is determined for 10 days only with the assumption that the members of the PLC will provide crude Oil in credit based sale as stated by the company.
 Right Edible Oil Processors PLC
Financial Study
I. Fund Allocation

Existing
Investment Cost(In Planned Investment
Ser. No. Description
Birr) Cost(In Birr)

1 Building and Construction - 6,542,532

Machinery & Equipments -Processing
2 - 13,044,671
Plant
3 Vehicles - 2,295,000
4 Office Furniture & Equipments - 198,717
5 Electricity Installation - 1,082,019
6 Waterhole 600,944 -
7 Land Lease and Compensation Fee 1,263,735 -
Sub Total 1,864,679 23,162,939
8 Pre-production Cost 286,727 -
9 Pre-production Interest - 707,460
Sub Total 286,727 707,460
10 Working Capital - 11,101,807
Sub Total - 11,101,807
Total 2,151,406 34,972,206
 Right Edible Oil Processors PLC
Disbursement Schedule
1. Equity Disbursement Schedule

Balance in
Equity Amount to be Commitment To be
Disbursement Purpose of Disbursement Disbursed (In Birr) Disbursed
Plan (In Birr) to
12,123,612
Waterhole 600,944
Land Lease and
Existing 1,263,735
Compensation Fee 9,972,206 Existing
Pre-production Cost 286,727
Sub Total 2,151,406
Building and Construction Promoter/
3,271,266
(First 50% cost) Contructor
Machinery & Equipments -
Processing Plant (30% L/C 3,913,401 Supplier
1st Opening)
Disbursement Procurement of
688,500 1,017,020 Supplier
Vehicles(30%)
Electricity Installation 1,082,019 EEPCO
Sub-total 8,955,186
Building and Construction Promoter/
(First 4% cost with loan) 309,559 Contructor

2nd Pre-production Interest 707,460 - DBE

Disbursement Sub-total 1,017,020
Total 12,123,612
Total Equity Bloked 9,972,206

2. Loan Disbursement Schedule

Balance in
Loan Amount to be Commetment To be
Disbursement Purpose of Disbursement Disbursed (In Birr) Disbursed
Plan (in Birr) to
25,000,000
Building and Construction
Contractor/
(Second 46% cost with 2,961,707
Promoter
Equity )
Procurement of Machinaries
(refining, filling, boiler and
To the
compressor machine) 9,131,270 11,300,523
supplier
(Remaining 70% of cost of
1st Disb Machinaries)
Procurement of Vehicles
To the
(70% cost for L/C 1,606,500
supplier
settlement)
1st Disb

Sub-total 13,699,477
Working Capital for
imported raw materials (30% To the
2nd Disb 1,220,548 10,079,975
of L/C Opening for supplier
Chemicals)

Sub-total 1,220,548

Procurement of Furniture & To the

198,717
Equipment supplier

Working Capital for To the

1,386,582
overhead (Indirect)costs Promoter
3th Disb
Working Capital Of Electiric To the
2,409 8,492,268
Power Promoter

Sub-total 1,587,708

Working Capital for local

4,136,150 To suppliers
Raw Materials
Working Capital for
imported raw materials (70% To the
4th Disb 1,508,173
Cost of Chemicals supplier
2,847,945
Chemicals)

Sub-total
6,984,095

Working Capiatl For Packing

To supplier
Materials
1,356,164
5th Disb Working Capiatl For To the
-
Marketing Cost Promoter
152,009
Sub-total 1,508,173
Total 25,000,000 -
 Expected
Months to be
Disbursed
(2015)

Existing

May

July
Phase by phase
every four
month starting
on July

Months to
Condition for be
Disbursement Disbursed
(2015)

After signing the

loan agreement
and fully utilized
the equity July
contribution and
arrival of
machineries
 the equity July
contribution and
arrival of
machineries

After verification
of the proper
utilization of the August
previous
disbursement

After verification
of the proper
utilization of the September
previous
disbursement

After verification
of the proper
utilization of the October
previous
disbursement

After verification
of the proper
utilization of the November
previous
disbursement
 Right Edible Oil Processors PLC
Loan Repayment Schedule

Repayment Principal Commitment Commitment Outstanding

Interest
Date Repayment Charge Balance Balance
2015, 8.5% 0.5% 25,000,000
30-Jun-15 - 31,250 25,000,000
31-Jul-15 - 97,038 4,709 11,300,523 13,699,477
31-Aug-15 - 105,684 4,200 10,079,975 14,920,024
30-Sep-15 - 116,930 3,538 8,492,268 16,507,732
31-Oct-15 - 166,400 628 1,508,173 23,491,827
30-Nov-15 - 177,083 - 25,000,000
Sub-Total - 663,135 44,325
2016,
31-Mar-16 1,388,955 1,062,500 23,611,045
31-Jul-16 1,388,885 668,980 22,222,160
30-Nov-16 1,388,885 629,628 20,833,275
Sub-Total 4,166,725 2,361,107
2017,
31-Mar-17 1,388,885 590,276 19,444,390
31-Jul-17 1,388,885 550,924 18,055,505
30-Nov-17 1,388,885 511,573 16,666,620
Sub-Total 4,166,655 1,652,773
2018,
31-Mar-18 1,388,885 472,221 15,277,735
31-Jul-18 1,388,885 432,869 13,888,850
30-Nov-18 1,388,885 393,517 12,499,965
Sub-Total 4,166,655 1,298,607
2019,
31-Mar-19 1,388,885 354,166 11,111,080
31-Jul-19 1,388,885 314,814 9,722,195
30-Nov-19 1,388,885 275,462 8,333,310
Sub-Total 4,166,655 944,442
2020,
31-Mar-20 1,388,885 236,110 6,944,425
31-Jul-20 1,388,885 196,759 5,555,540
30-Nov-20 1,388,885 118,055 4,166,655
Sub-Total 4,166,655 550,924
2021,
31-Mar-21 1,388,885 88,541 2,777,770
31-Jul-21 1,388,885 59,028 1,388,885
30-Nov-21 1,388,885 29,514 0.00
Sub-Total 4,166,655 177,083
Grand Total 25,000,000 6,984,937
 Right Edible Oil Processors PLC
Loan Repayment Schedule
-
 Right Edible Oil Processors PLC
Depreciation & Amortaization Shchedule
Project Years
Depreciation
Description Original Value Rate %
Amount/annum 1 2 3 4 5 6 7 8 9 10
A. Depreciation
Building and Construction 6,542,532 5% 327,127 6,215,406 5,888,279 5,561,153 5,234,026 4,906,899 4,579,773 4,252,646 3,925,519 3,598,393 3,271,266.24
Machinery & Equipments -
Processing Plant
13,044,671 10% 1,304,467 11,740,204 10,435,737 9,131,270 7,826,803 6,522,335 5,217,868 3,913,401 2,608,934 1,304,467 -
Vehicles 2,295,000 20% 459,000 1,836,000 1,377,000 918,000 459,000 2,295,000 1,836,000 1,377,000 918,000 459,000 -
Office Furniture & Equipments 198,717 10% 19,872 178,845 158,973 139,102 119,229.90 99,358.25 79,486.60 59,614.95 39,743.30 19,871.65 -
Electricity Installation 1,082,019 10% 108,202 973,817 865,615 757,413 649,211 541,009 432,808 324,606 216,404 108,202 -
Sub Total 23,162,939 2,218,667 20,944,272 18,725,604 16,506,937 14,288,270 14,364,603 12,145,935 9,927,268 7,708,601 5,489,934 3,271,266
B. Amortaization
Waterhole 600,944 10% 60,094 540,850 480,755 420,661 360,566 300,472 240,378 180,283 120,189 60,094 -
Land Lease and Compensation
Fee 1,263,735 4% 50,549 1,213,186 1,162,636 1,112,087 1,061,537 1,010,988 960,439 909,889 859,340 808,790 758,241.00
Pre-operating cost 286,727 10% 28,673 258,054 229,382 200,709 172,036 143,364 114,691 86,018 57,345 28,673 -
Pre-operating interest 707,460 10% 70,746 636,714 565,968 495,222 424,476 353,730 282,984 212,238 141,492 70,746 -
Sub Total 2,858,866 210,063 2,648,804 2,438,741 2,228,679 2,018,616 1,808,554 1,598,491 1,388,429 1,178,366 968,304 758,241
Total Annual Deprci. &
Amortaization 26,021,805 2,428,730 23,593,076 21,164,346 18,735,616 16,306,886 16,173,156 13,744,426 11,315,697 8,886,967 6,458,237 4,029,507

Depreciation Cost Per Annum

2,428,730 2,428,730 2,428,730 2,428,730 2,428,730 2,428,730 2,428,730 2,428,730 2,428,730 2,428,730 2,428,730

Annual Replacement Cost 2,295,000

 Right Edible Oil Processors PLC
Projected Profit and/or Loss Statement

Proejct Years
Description 1 2 3 4 5 6 7 8 9 10
Revenue 182,410,406 197,611,273 212,812,141 212,812,141 212,812,141 212,812,141 212,812,141 212,812,141 212,812,141 212,812,141
Direct Operating Costs 155,434,962 167,261,814 179,161,716 179,161,716 179,161,716 179,161,716 179,161,716 179,161,716 179,161,716 179,161,716
Indirect Operating Cost 3,821,400 3,909,887 4,002,798 4,100,355 4,202,790 4,310,347 4,423,281 4,541,862 4,666,373 4,797,108
Less Total Operating Costs 159,256,362 171,171,701 183,164,514 183,262,071 183,364,506 183,472,063 183,584,997 183,703,578 183,828,088 183,958,824
Gross profit 23,154,045 26,439,572 29,647,626 29,550,069 29,447,635 29,340,078 29,227,144 29,108,562 28,984,052 28,853,317
Less: Deprication 2,428,730 2,428,730 2,428,730 2,428,730 2,428,730 2,428,730 2,428,730 2,428,730 2,428,730 2,428,730
Profit Before Interest & Tax 20,725,315 24,010,842 27,218,897 27,121,340 27,018,905 26,911,348 26,798,414 26,679,833 26,555,322 26,424,587
Less: Interest 2,361,107 1,652,773 1,298,607 944,442 550,924 177,083
Profit before tax 18,364,207 22,358,069 25,920,289 26,176,898 26,467,980 26,734,265 26,798,414 26,679,833 26,555,322 26,424,587
Less: Profit Tax (35%) 6,427,473 7,825,324 9,072,101 9,161,914 9,263,793 9,356,993 9,379,445 9,337,941 9,294,363 9,248,605
Net Profit 11,936,735 14,532,745 16,848,188 17,014,984 17,204,187 17,377,273 17,418,969 17,341,891 17,260,960 17,175,981
 Right Edible Oil Processors PLC
Projected Cash Flow

Proejct Years
Description 0 1 2 3 4 5 6 7 8 9 10
Cash Inflows
Owner's Equity 12,123,612
Bank Loan 25,000,000
Net Profit 11,936,735 14,532,745 16,848,188 17,014,984 17,204,187 17,377,273 17,418,969 17,341,891 17,260,960 17,175,981
Depreciation 2,428,730 2,428,730 2,428,730 2,428,730 2,428,730 2,428,730 2,428,730 2,428,730 2,428,730 2,428,730
Total Cash Inflows 37,123,612 14,365,465 16,961,475 19,276,918 19,443,713 19,632,917 19,806,002 19,847,699 19,770,621 19,689,689 19,604,711
Cash out Flows
Investment Costs 36,129,424
Increase In worikng Capital - 626,689 640,780 11,662 12,245 12,858 13,501 14,176 14,884 15,629
Loan Repayment 4,166,725 4,166,655 4,166,655 4,166,655 4,166,655 4,166,655
Pre-Operating Costs & Int 994,187
Dividened/Withdrwal 4,774,694 5,813,098 6,739,275 6,805,993 6,881,675 6,950,909 6,967,588 6,936,756 6,904,384 6,870,393
Replacment - - - - - 2,295,000 - - - - -
Total Cash Outflows 37,123,612 8,941,419 10,606,442 11,546,710 10,984,311 13,355,575 11,130,422 6,981,088 6,950,932 6,919,268 6,886,021
Net Cash Flow - 5,424,046 6,355,033 7,730,208 8,459,403 6,277,342 8,675,581 12,866,611 12,819,689 12,770,421 12,718,690
Cumulative Cash Balance 5,424,046 11,779,078 19,509,286 27,968,689 34,246,031 42,921,611 55,788,222 68,607,911 81,378,332 94,097,022

Retained earning 7,162,041 8,719,647 10,108,913 10,208,990 10,322,512 10,426,364 10,451,381 10,405,135 10,356,576 10,305,589

Commulative retained earning 7,162,041 15,881,688 25,990,601 36,199,591 46,522,103 56,948,467 67,399,848 77,804,983 88,161,559 98,467,147
 Right Edible Oil Processors PLC
Projected Balance Sheet

Y E A R S
DESCRIPTION 0 1 2 3 4 5 6 7 8 9 10
ASSETS
CURRENT ASSETS
Cash 5,424,046 11,779,078 19,509,286 27,968,689 34,246,031 42,921,611 55,788,222 68,607,911 81,378,332 94,097,022
Inventory 11,101,807 11,101,807 11,728,496 12,369,276 12,380,938 12,393,183 12,406,041 12,419,542 12,433,717 12,448,602 12,464,231
Total Current Assets 11,101,807 16,525,852 23,507,574 31,878,562 40,349,627 46,639,214 55,327,652 68,207,764 81,041,628 93,826,934 106,561,252
FIXED ASSETS
Building and Construction 6,542,532 6,215,406 5,888,279 5,561,153 5,234,026 4,906,899 4,579,773 4,252,646 3,925,519 3,598,393 3,271,266
Machinery & Equipments -
Processing Plant 13,044,671 11,740,204 10,435,737 9,131,270 7,826,803 6,522,335 5,217,868 3,913,401 2,608,934 1,304,467 -
Vehicles 2,295,000 1,836,000 1,377,000 918,000 459,000 2,295,000 1,836,000 1,377,000 918,000 459,000 -
Office Furniture & 198,717 178,845 158,973 139,102 119,230 99,358 79,487 59,615 39,743 19,872 -
Equipments
Electricity Installation 1,082,019 973,817 865,615 757,413 649,211 541,009 432,808 324,606 216,404 108,202 -
Waterhole 600,944 540,850 480,755 420,661 360,566 300,472 240,378 180,283 120,189 60,094 -
Total Fixed Assets 23,763,883 21,485,121 19,206,360 16,927,598 14,648,836 14,665,075 12,386,313 10,107,551 7,828,790 5,550,028 3,271,266
INTANGABLE ASSETS
Land Lease and 1,263,735 1,213,186 1,162,636 1,112,087 1,061,537 1,010,988 960,439 909,889 859,340 808,790 758,241
Compensation Fee
Pre-operating cost 286,727 258,054 229,382 200,709 172,036 143,364 114,691 86,018 57,345 28,673 -
Pre-operating interest 707,460 636,714 565,968 495,222 424,476 353,730 282,984 212,238 141,492 70,746 -
Total Intangable Asset 2,257,922 2,107,954 1,957,986 1,808,018 1,658,050 1,508,082 1,358,114 1,208,145 1,058,177 908,209 758,241
Total Assets 37,123,612 40,118,928 44,671,920 50,614,178 56,656,513 62,812,370 69,072,079 79,523,460 89,928,595 100,285,171 110,590,760
LIABILITIES & Capital
Bank Loan 25,000,000 20,833,275 16,666,620 12,499,965 8,333,310 4,166,655 0.00
Sub Total 25,000,000 20,833,275 16,666,620 12,499,965 8,333,310 4,166,655 0.00 - - - -
CAPITAL
Owner's Equity 12,123,612 12,123,612 12,123,612 12,123,612 12,123,612 12,123,612 12,123,612 12,123,612 12,123,612 12,123,612 12,123,612
Retained Earnings 7,162,041 15,881,688 25,990,601 36,199,591 46,522,103 56,948,467 67,399,848 77,804,983 88,161,559 98,467,147
Sub total 12,123,612 19,285,653 28,005,300 38,114,213 48,323,203 58,645,715 69,072,079 79,523,460 89,928,595 100,285,171 110,590,760
Total Liabilities and Capital 37,123,612 40,118,928 44,671,920 50,614,178 56,656,513 62,812,370 69,072,079 79,523,460 89,928,595 100,285,171 110,590,760
- - - - - - - - - - -
 Right Edible Oil Processors PLC Annex VII
Calcualtion of Financial Internal Rate of Return

Working Capital Fixed Asset Net Benefit After Net Benefit

Year Revenue Total Benefits Initial Inv't. Replacement Operating Costs Total Income Tax Total Cost
Recovery Recovery Tax Before Tax
0 37,123,612 37,123,612 37,123,612 (37,123,612) (37,123,612)
1 182,410,406 182,410,406 159,256,362 159,256,362 6,427,473 165,683,834 16,726,572 23,154,045
2 197,611,273 197,611,273 171,171,701 171,171,701 7,825,324 178,997,026 18,614,248 26,439,572
3 212,812,141 212,812,141 183,164,514 183,164,514 9,072,101 192,236,615 20,575,525 29,647,626
4 212,812,141 212,812,141 183,262,071 183,262,071 9,161,914 192,423,985 20,388,155 29,550,069
5 212,812,141 212,812,141 2,295,000 183,364,506 185,659,506 9,263,793 194,923,299 17,888,841 27,152,635
6 212,812,141 212,812,141 183,472,063 183,472,063 9,356,993 192,829,055 19,983,085 29,340,078
7 212,812,141 212,812,141 183,584,997 183,584,997 9,379,445 192,964,442 19,847,699 29,227,144
8 212,812,141 212,812,141 183,703,578 183,703,578 9,337,941 193,041,520 19,770,621 29,108,562
9 212,812,141 212,812,141 183,828,088 183,828,088 9,294,363 193,122,451 19,689,689 28,984,052
10 212,812,141 12,464,231 3,271,266 228,547,637 183,958,824 183,958,824 9,248,605 193,207,429 35,340,208 44,588,813
IRR 49% 70%
IRR Before Tax 70% NPV Before Tax 189,671,859 NPV 132,779,493 189,671,859
IRR After Tax 49% NPV After Tax 132,779,493
Right Edible Oil Processors PLC
Calcualtion of Financial Internal Rate of Return (If Revenue is decreased 10%)

Working Capital Fixed Asset Net Benefit After Net Benefit

Year Revenue Total Benefits Initial Inv't. Replacement Operating Costs Total Income Tax Total Cost
Recovery Recovery Tax Before Tax
0 37,123,612 37,123,612 37,123,612 (37,123,612) (37,123,612)
1 164,169,366 164,169,366 159,256,362 159,256,362 43,108 159,299,470 4,869,896 4,913,004
2 177,850,146 177,850,146 171,171,701 171,171,701 908,930 172,080,631 5,769,515 6,678,445
3 191,530,927 191,530,927 183,164,514 183,164,514 1,623,676 184,788,190 6,742,736 8,366,412
4 191,530,927 191,530,927 183,262,071 183,262,071 1,713,489 184,975,560 6,555,366 8,268,855
5 191,530,927 191,530,927 2,295,000 183,364,506 185,659,506 1,815,368 187,474,874 4,056,052 5,871,421
6 191,530,927 191,530,927 183,472,063 183,472,063 1,908,568 185,380,631 6,150,296 8,058,864
7 191,530,927 191,530,927 183,584,997 183,584,997 1,931,020 185,516,017 6,014,910 7,945,930
8 191,530,927 191,530,927 183,703,578 183,703,578 1,889,517 185,593,095 5,937,832 7,827,348
9 191,530,927 191,530,927 183,828,088 183,828,088 1,845,938 185,674,026 5,856,900 7,702,838
10 191,530,927 12,464,231 3,271,266 207,266,423 183,958,824 183,958,824 1,800,180 185,759,004 21,507,419 23,307,599
IRR 12% 16%
IRR Before Tax 16% NPV Before Tax 15,675,616 NPV 6,962,902 15,675,616
IRR After Tax 12% NPV After Tax 6,962,902
 Right Edible Oil Processors PLC
Calcualtion of Financial Internal Rate of Return (If Opeating costs are increased By 10%)

Working Capital Fixed Asset Net Benefit After Net Benefit

Year Revenue Total Benefits Initial Inv't. Replacement Operating Costs Total Income Tax Total Cost
Recovery Recovery Tax Before Tax
0 37,123,612 37,123,612 37,123,612 (37,123,612) (37,123,612)
1 182,410,406 182,410,406 175,181,998 175,181,998 853,500 176,035,498 6,374,909 7,228,409
2 197,611,273 197,611,273 188,288,871 188,288,871 1,834,315 190,123,186 7,488,087 9,322,402
3 212,812,141 212,812,141 201,480,966 201,480,966 2,661,343 204,142,309 8,669,832 11,331,175
4 212,812,141 212,812,141 201,588,278 201,588,278 2,747,742 204,336,020 8,476,121 11,223,862
5 212,812,141 212,812,141 2,295,000 201,700,957 203,995,957 2,846,035 206,841,992 5,970,149 8,816,184
6 212,812,141 212,812,141 201,819,269 201,819,269 2,935,471 204,754,740 8,057,401 10,992,872
7 212,812,141 212,812,141 201,943,497 201,943,497 2,953,970 204,897,467 7,914,674 10,868,644
8 212,812,141 212,812,141 202,073,936 202,073,936 2,908,316 204,982,252 7,829,888 10,738,205
9 212,812,141 212,812,141 202,210,897 202,210,897 2,860,380 205,071,277 7,740,864 10,601,243
10 212,812,141 12,464,231 3,271,266 228,547,637 202,354,706 202,354,706 2,810,047 205,164,753 23,382,884 26,192,931
IRR 18% 24%
IRR Before Tax 24% NPV Before Tax 32,656,128 NPV 18,000,235 32,656,128
IRR After Tax 18% NPV After Tax 18,000,235
Right Edible Oil Processors PLC
Calcualtion of Financial Internal Rate of Return (If Investment Cost Increase By 10%)

Working Capital Fixed Asset Net Benefit After Net Benefit

Year Revenue Total Benefits Initial Inv't. Replacement Operating Costs Total Income Tax Total Cost
Recovery Recovery Tax Before Tax
0 40,835,973 40,835,973 40,835,973 (40,835,973) (40,835,973)
1 182,410,406 182,410,406 159,256,362 159,256,362 6,427,473 165,683,834 16,726,572 23,154,045
2 197,611,273 197,611,273 171,171,701 171,171,701 7,825,324 178,997,026 18,614,248 26,439,572
3 212,812,141 212,812,141 183,164,514 183,164,514 9,072,101 192,236,615 20,575,525 29,647,626
4 212,812,141 212,812,141 183,262,071 183,262,071 9,161,914 192,423,985 20,388,155 29,550,069
5 212,812,141 212,812,141 2,524,500 183,364,506 185,889,006 9,263,793 195,152,799 17,659,341 26,923,135
6 212,812,141 212,812,141 183,472,063 183,472,063 9,356,993 192,829,055 19,983,085 29,340,078
7 212,812,141 212,812,141 183,584,997 183,584,997 9,379,445 192,964,442 19,847,699 29,227,144
8 212,812,141 212,812,141 183,703,578 183,703,578 9,337,941 193,041,520 19,770,621 29,108,562
9 212,812,141 212,812,141 183,828,088 183,828,088 9,294,363 193,122,451 19,689,689 28,984,052
10 212,812,141 12,464,231 3,271,266 228,547,637 183,958,824 183,958,824 9,248,605 193,207,429 35,340,208 44,588,813
IRR 45% 64%
IRR Before Tax 64% NPV Before Tax 137,035,261 NPV 84,599,901 137,035,261
IRR After Tax 45% NPV After Tax 84,599,901
 Right Edible Oil Processors PLC
Financial Projection Summary
I. Project Investment
Description Amount Percentage
Total Fixed Investment Costs 25,027,618 67%
Pre-production Capital Expenditure 994,187 3%
Working Capital 11,101,807 30%
Total 37,123,612 100%
-
II. Source of fund
Description Amount D/E Ratio
Debt -DBE Loan 25,000,000 67%
Equity 12,123,612 33%
Total Investment Cost 37,123,612 100%

III. Expected Financial results

Description Year-1 Year-10
Sales Revenue 182,410,406 212,812,141
Profit (Loss) 11,936,735 17,175,981
Cumulative Cash Balance 5,424,046 94,097,022

IV. Financial IRR

Net Present Value Internal Rate
(NPV) of Return
Before Tax 189,671,859 70%
After Tax 132,779,493 49%

V. Sensitivity Analysis
IRR
IRR Before
Description After
Tax
Tax
When Revenue decreased By 10% 16% 12%
When Operating Costs increased By 10% 24% 18%
When Investment Costs increased By 10% 64% 45%
 Right Edible Oil Processors PLC
Project Implementation Plan

2015
Sr.
Type of Activiities

May
Mar

Aug
Apr

Nov
No.

Jun

Sep

Oct
Jul
1 Loan Processing
2 Errection & Installation of Machinery
3 Procurement of Vehicles
4 Building and Construction
Procurement of Machinery and
5
Equipment
6 Procurement of Imported Raw Material
7 Machinery Installation
8 Procurement of Furniture & Equipment
9 Employees recruitement and training
10 Procurement of Local Raw Material
11 Commencement of Production
 Right Edible Oil Processors PLC
Loan request vs loan proposed Cost Variantion Loan Vs Plan

Variation
Requested Proposed
Ser. (Proposed -
Description Amount Amount
No. Requested
(In Birr) (In Birr)
(In Birr)

Building &
1 8,314,794 2,961,707 (5,353,087)
Construction

Machinary and
2 6,738,096 9,131,270 2,393,174
Equipment

3 Vehicle 742,900 1,606,500 863,600

4 - 198,717 198,717
Office Furniture &
Equipment

5 Electricity 1,100,000 - (1,100,000)

Installation

6 5,504,210 11,101,807 5,597,597

Working Capital
Total 22,400,000 25,000,000 2,600,000
essors PLC
Variantion Loan Vs Plan

Reason for Variation

The promoter planned to construct

the remaining building (office &
separated packing house) phase by
phase from their own source because
of their capacity to build once.

Because of change in Pro forma invoice

total cost of Machinery & Equipment is
Birr 13,044,671 out of which Birr
9,131,270 (70%) planned to be cover by
loan and rest will be covered by the
promoter equity.

Based on Bank’s research

commodity study Heavy duty truck
is recommended for raw material
and output transportation such that it
included after the loan request.

since promoter planned to procure by

equity and contribution and we
considered to be covered by loan so
as to maintain debt- equity ratio.
The promoter planned to cover by
loan but we planned for equity to
uses if firstly.
Becuase a paramter diference in
working capital determination b/n
the promoter and the banks
commodity study.