Investment Office ANRS

Project Profile on
BAKING POWDER PRODUCTION

Development Studies
Associates (DSA)

October 2008
Addis Ababa

Table of Contents
1.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..................................................................................................2
3.2.Plant Capacity........................................................................................................................3
3.3.Production Program...............................................................................................................3

4.Raw Materials and Utilities.................................................................................3

4.1Availability and Source of Raw materials..............................................................................3
4.2Annual Requirement and Cost of Raw Materials and Utilities...............................................3

5Location and Site...................................................................................................4

6Technology and Engineering ...............................................................................4
6.1Production Process..................................................................................................................4
6.2Machinery and Equipment......................................................................................................5
6.3Civil Engineering Cost............................................................................................................5

7Human Resource and Training Requirement.....................................................6

7.1Human Resource ....................................................................................................................6

8Financial Analysis..................................................................................................6
8.1Underlying Assumption .........................................................................................................6
8.2Investment...............................................................................................................................8
8.3Production Costs.....................................................................................................................9
8.4Financial Evaluation.............................................................................................................10

9Economic and Social Benefit and Justification.................................................10

ANNEXES..............................................................................................................12

1. Summary
This project profile deals with the establishment of baking powder producing plant in Amhara
National Regional State. The following presents the main findings of the study
Demand projection divulges that the domestic demand for baking powder is substantial and is
increasing with time. The planned plant is set to produce 60 tons on baking powder annually.
The total investment requirement is estimated at Birr 1 million, out of which Birr 132,275 is for
machinery and equipment.
The plant will create employment opportunities for 19 persons. The project is financially viable
with an internal rate of return (IRR) of 35.78% and a net present value (NPV) of Birr 597,142
discounted at 18%.

2. Product Description and Application

Baking powder is a mixture of sodium bicarbonate, one of more acid ingredients, and an inert
ingredient which serves to keep the reactive components physically separated and minimizes
premature reaction in the dry mixture. The inert ingredient is usually starch dried to 5-7%
moisture. Calcium sulphate and calcium carbonate are sometimes used instead of starch.
Of the household baking powder in general use, the type controlling sodium aluminum sulphate
(SAS) or soda alum is the most common one. A small amount of mono calcium phosphate mono
hydrate (MCP) is used in combination with SAS. The MCP serves to gas cells during the make
up of the dough or baking so that uniform and efficient expansion occurs in the oven. This is
necessary since SAS is almost completely uncreative until heat is applied which is known as
double-acting baking powder.
Commercial baking powders often contain sodium acid pyro phosphate (SAPP), which is
superior to SAS in stability and performance.

3. Market Study, Plant Capacity and Production Program

3.1. Market Study
3.1.1. Present Demand and Supply
According to estimates from varies sources the countrywide demand for baking powder
amounted 116 and 122 tons in the years 2006 and 2007. The demand in the year 2008 is
estimated at 130 tons. More than half of this demand is satisfied by import.

3.1.2. Projected Demand

Taking the demand in the years 2006, 2007 and 2008 as basis the future demand is projected and
the outcome is depicted in Table 1 below.
Table 1: Projected Demand for Baking Powder

Year

Projected Demand
for Baking Powder
(in tons)

2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019

138
146
153
161
169
176
184
192
199
207
215

3.1.3. Pricing and Distribution

According to information collected from the retail market, the present price per kg of baking
powder is Birr 30. Allowing a 25% profit margin for retailers, the ex-factory price per kg of
baking powder is Birr 22.5.
The product to be produced by the envisaged plant will be marketed through food and food
additive distributors.
2

3.2. Plant Capacity

Given the expected demand for baking powder presented earlier, and the planned technology, the
envisaged plant is set to produce 60 tons per annum.

3.3. Production Program

The program is scheduled based on the consideration that the envisaged plant will work 275 days
in a year where the remaining days will be holidays and for maintenance. During the first year of
operation the plant will operate at 85 percent capacity and then it grows to full capacity in the 2 nd
year. This consideration is developed based on the assumption that market and logistics barriers
would take place for the first year of operation.

4. Raw Materials and Utilities

4.1

Availability and Source of Raw materials

The raw materials are partially imported and. Seventy percent of the raw material is expected to
be imported.

4.2

Annual Requirement and Cost of Raw Materials

and Utilities

The Major raw materials consist of sodium Acid pyro-phosphate, sodium bicarbonate, and starch
(filler). Auxiliary materials include packaging materials, which might include polyethylene
packages, tin and glass packages.
The list and costs of required raw materials are shown in Table 2 below.

Table 2: Required Raw Materials

No.
1
2
3
4

Material
Sodium Acid Pyro-Phosphate
Sodium Bicarbonate
Starch (Filler)
Packaging materials
Total

Qty
30
15
15
Lump sum
60

Cost (in Birr)

Local Foreign
10687
1 249365
4039
1731
40548
27032
67500
45000
18063 361451
3

The inputs required by the plant are electricity and water. The annual energy consumption will
be 60000 kwh, the cost of which is estimated at Birr 33,000. Annual water consumption is
estimated to be 1000 m3, the cost of which is estimated at Birr 2,650. Thus, the total annual
expenditure on utilities will be Birr 35,650.

5 Location and Site

All zonal cities of ANRS are appropriate sites for this plant.

6 Technology and Engineering

6.1

Production Process

The production of baking powder mainly involves the physical mixing of various components in
a long-scale batch mixer. Sodium acid pyro-phosphate sodium bicarbonate and starch are the
major ingredients to be mixed in certain proportions.
The characteristics of the various components have an influence on product uniformity. The
order in which mixing occurs may have influence on the stability of the product. Rigid
specifications for purity, granulation and moisture content of the components, must be adhered to
if a uniform, stable and reliable is to be obtained.
Variations in ingredient purity can later the proper balance of acids to soda. Granulation is very
critical, not only in terms of stability and uniformity of distribution of particles during blending,
but also in the appearance of baked products. The proper kind and speed of blending are essential
4

to attain and maintain proper distribution of particles. The baking powder is usually packaged in
air-tight metal or fibre cans.
Alternative technology
Proportioning the ingredients, mixing and granulating the mixed components can be automated;
but this will be capital intensive.

6.2

Machinery and Equipment

The list of machinery and equipment required by the plant is presented in Table 3. The total cost
of machinery and equipment is estimated at Birr 132,275.
Table 3: Required Machineries and Equipments

Item

Description

Qty.

Sifter

Micro-pulverizer complete with motors

and accessories

Mixer-double shaft with 3 H.P. motor

and other accessories
Cabinet-electrically operated oven with
48 trays, thermostatic control and their
accessories

Weighing machines (a) platform type:

cap.50 kg (b) Table model
Polyethylene bag sealing m/c
Miscellaneous equipment like trays,
bins, etc

5
6
7

1
Many

Supplier Address
The machineries and equipments listed above are available in Addis Ababa Market.

6.3

Civil Engineering Cost

The total land required is 500 m2 while the built-up area for plant is 250 m2. The cost of plant
building is estimated at Birr 500,000. The land lease is estimated at Birr 30,000.

7 Human Resource and Training Requirement

7.1

Human Resource

The required human resource and associated costs are shown in Table 4.
Table 4: Human Resource Requirements

Salary/Wage (Birr)

Job Title
1
2
3
4
5
6
7
9
1
0
1
1
1
2

No.

Monthly
Annual
3500
42,000
2500
30,000
1,500
18,000
1,200
14,400
850
10,200
850
10,200
1200
14,400
1200
43,200

General Manger
Production Supervisor
Personnel Head
Accountant
Secretary
Casher
Chemist
Operators & technicians

1
1
1
1
1
1
1
3

Ass. Oper. &technicians

700

25,200

Security

350

12,600

Genitors

3
19

350

12,600
232,800

Total
Employment Benefits 20% of Annual
Salary

46,560
279,360

B. Training Requirement
The production supervisor, the chemist and the skilled workers will receive short term training
on the operation of the plant for a total of four to six weeks. The cost of training is estimated at
Birr 30,000.

8 Financial Analysis
8.1

Underlying Assumption

The financial analysis of this plant is based on the data provided in the preceding sections and
the following assumptions.

A. Construction and Finance

Construction period

2 years

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 days

Raw Material-Foreign

120 days

Factory Supplies in Stock

30 days

Spare Parts in Stock and Maintenance

30 days

Work in Progress
Finished Products
Accounts Receivable
Cash in Hand
Accounts Payable

10 days
15 days
30 days
30 days
30 days

8.2

Investment

The total investment cost of the project including working capital is estimated at Birr one million
as shown in Table 5 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 5: Total Initial Investment & Working Capital

Total Initial Investment

Item
Land
Building and civil works
Office equipment
Plant machinery & equipment
Total Fixed Investment

Cost
1,500.00
500,000.00
50,000.00
132,275.00
683,775.00

Pre production capital expenditure

Total Initial Investment
Working capital at full capacity

Total

34,188.75
717,963.75
290,944.61
1,008,908.36

*Pre-production capital expenditure includes - all expenses for preinvestment studies, consultancy fee during construction and expenses for
companys establishment, project administration expenses, commission
expenses, preproduction marketing and interest expenses during
construction.

8.3

Production Costs

The total production cost at full capacity is estimated at Birr one million. The details are shown
in Table 6.
Table 6: Total Production Cost at Full Capacity

Total Production Cost at Full Capacity

Items
Cost
1. Raw materials
2. Utilities
3. Wages and Salaries
4. Spares and Maintenance
Factory costs
5. Depreciation
6. Financial costs

Total Production Cost

542,084.38
35,650.00
279,360.00
20,513.25
877,607.63
50,065.25
72,641.40
1,000,314.28

8.4
I.

Financial Evaluation

Profitability

The income statement shows that the proposed project generates profit starting from the first year
of operation. Profit starts at undiscounted Birr 196,888 in first year and reaches about Birr
302,996 in the eight year of the project life. Gross Profit to Sales ratio starts at 17.16% and
reaches 32.06% at eight year. The total profit earned during the whole ten years of operation
amounts Birr to 2.83 million. These and other indicators prove that the project is profitable.
II.

Breakeven Analysis

The breakeven analysis shows that the Total Revenue equals the Total Cost at 28.45% of
capacity which is achieved in the first year of operation.
III.

Payback Period

The project pays back its initial investment in the second year of operation.
IV.

Simple Rate of Return

The simple rate of return is 30.6%.

V.

Internal Rate of Return and Net Present Value

The Internal Rate of Return is 28.45% and the Net Present Value at 18% discount rate per annum
is Birr 597,142.
VI.

Sensitivity Analysis

A 10% reduction in sales reduces the total profit to Birr 1.83; it still remains viable. A 10%
increase in price of raw materials reduces the total profit to Birr 2.27; the impact is not serious.

9 Economic and Social Benefit and Justification

Based on the foregoing presentation and analysis, we can learn that the proposed project
possesses wide range of benefits that complement the financial feasibility obtained earlier. In
general the envisaged project promotes the socio-economic goals and objectives stated in the
strategic plan of the Amhara National Regional State. These benefits are listed as follows:
10

A. Profit Generation
The project is found to be financially viable and earns a total profit of Birr 2.83 million within
the project life.
B. Tax Revenue
In the project life under consideration, the government will collect about Birr 978,207 from
corporate tax payment alone (i.e. excluding income tax, sales tax and VAT).

C. Import Substitution and Foreign Exchange Saving

The project has strong import substitution effect. Furthermore, there is a possibility to engage in
international market as well.
D. Employment and Income Generation
The proposed project is expected to create employment opportunity to 19 persons. Consequently
the project creates Birr 279,360 annual household income from employment. This would be one
of the commendable accomplishments of the project.
E. Diversification and InterSectoral linkage
The proposed project helps to diversify ANRS and Ethiopian economy. It contributes to
industrialization of the regions as well as the countys economy.

11

ANNEXES

12

Annex 1: Total Net Working Capital Requirements (in Birr)

CONSTRUCTION

Capacity Utilization (%)

1. Total Inventory

PRODUCTION

Year 1

Year 2

85%

100%

100%

100%

368,908

434,009

434,009

434,009

150,815

177,430

177,430

177,430

Raw Material-Local

16,750

19,705

19,705

19,705

Raw Material-Foreign

134,065

157,724

157,724

157,724

Factory Supplies in Stock

860

1,012

1,012

1,012

Spare Parts in Stock and Maintenance

1,902

2,238

2,238

2,238

Work in Progress

21,505

25,300

25,300

25,300

Finished Products

43,010

50,600

50,600

50,600

2. Accounts Receivable

125,182

147,273

147,273

147,273

3. Cash in Hand

29,210

34,365

34,365

34,365

372,485

438,217

438,217

438,217

4. Current Liabilities

125,182

147,273

147,273

147,273

Accounts Payable

125,182

147,273

147,273

147,273

TOTAL NET WORKING CAPITAL REQUIREMENTS

247,303

290,945

290,945

290,945

INCREASE IN NET WORKING CAPITAL

247,303

43,642

Raw Materials in Stock- Total

CURRENT ASSETS

Annex 1: Total Net Working Capital Requirements (in Birr)

(continued)

PRODUCTION
5

10

100%

100%

100%

100%

100%

100%

434,009

434,009

434,009

434,009

434,009

434,009

177,430

177,430

177,430

177,430

177,430

177,430

19,705

19,705

19,705

19,705

19,705

19,705

157,724

157,724

157,724

157,724

157,724

157,724

Factory Supplies in Stock

1,012

1,012

1,012

1,012

1,012

1,012

Spare Parts in Stock and Maintenance

2,238

2,238

2,238

2,238

2,238

2,238

Work in Progress

25,300

25,300

25,300

25,300

25,300

25,300

Finished Products

50,600

50,600

50,600

50,600

50,600

50,600

2. Accounts Receivable

147,273

147,273

147,273

147,273

147,273

147,273

34,365

34,365

34,365

34,365

34,365

34,365

438,217

438,217

438,217

438,217

438,217

438,217

4. Current Liabilities

147,273

147,273

147,273

147,273

147,273

147,273

Accounts Payable

147,273

147,273

147,273

147,273

147,273

147,273

TOTAL NET WORKING CAPITAL REQUIREMENTS

290,945

290,945

290,945

290,945

290,945

290,945

Capacity Utilization (%)

1. Total Inventory
Raw Materials in Stock-Total
Raw Material-Local
Raw Material-Foreign

3. Cash in Hand
CURRENT ASSETS

INCREASE IN NET WORKING CAPITAL

Annex 2: Cash Flow Statement (in Birr)

CONSTRUCTION

PRODUCTION

Year 1

Year 2

358,982

649,926

1,272,682

1,372,091

1,350,000

1,350,000

358,982

649,926

125,182

22,091

Total Equity

143,593

259,971

Total Long Term Loan

215,389

389,956

125,182

22,091

2. Inflow Operation

1,147,500

1,350,000

1,350,000

1,350,000

Sales Revenue

1,147,500

1,350,000

1,350,000

1,350,000

Interest on Securities

TOTAL CASH OUTFLOW

358,982

358,982

1,273,032

1,113,186

1,144,990

1,136,516

4. Increase In Fixed Assets

358,982

358,982

341,888

341,888

17,094

17,094

5. Increase in Current Assets

372,485

65,733

6. Operating Costs

743,966

873,921

873,921

873,921

7. Corporate Tax Paid

109,644

113,276

8. Interest Paid

156,582

72,641

60,535

48,428

9.Loan Repayments

100,891

100,891

100,891

10.Dividends Paid

Surplus (Deficit)

290,945

-350

258,905

205,010

213,484

Cumulative Cash Balance

290,945

290,594

549,499

754,509

967,993

TOTAL CASH INFLOW

1. Inflow Funds

Total Short Term Finances

3. Other Income

Fixed Investments
Pre-production Expenditures

Annex 2: Cash Flow Statement (in Birr): Continued

PRODUCTION
5
1,350,000

6
1,350,000

7
1,350,000

8
1,350,000

9
1,350,000

10
1,350,000

Total Equity

Total Long Term Loan

Total Short Term Finances

2. Inflow Operation

1,350,000

1,350,000

1,350,000

1,350,000

1,350,000

1,350,000

Sales Revenue

1,350,000

1,350,000

1,350,000

1,350,000

1,350,000

1,350,000

TOTAL CASH OUTFLOW

1,128,041

1,121,617

1,113,142

1,003,777

1,003,777

1,003,777

4. Increase In Fixed Assets

Fixed Investments

Pre-production Expenditures

6. Operating Costs

873,921

873,921

873,921

873,921

873,921

873,921

7. Corporate Tax Paid

116,908

122,591

126,223

129,855

129,855

129,855

36,321

24,214

12,107

100,891

100,891

100,891

221,959

228,383

236,858

346,223

346,223

346,223

1,189,953

1,418,335

1,655,193

2,001,416

2,347,640

2,693,863

TOTAL CASH INFLOW

1. Inflow Funds

Interest on Securities
3. Other Income

5. Increase in Current Assets

8. Interest Paid
9. Loan Repayments
10.Dividends Paid
Surplus (Deficit)
Cumulative Cash Balance

Annex 3: DISCOUNTED CASH FLOW-TOTAL CAPITAL INVESTED

CONSTRUCTION
Year 1

PRODUCTION

Year 2

TOTAL CASH INFLOW

1,147,500

1,350,000

1,350,000

1,350,000

1. Inflow Operation

1,147,500

1,350,000

1,350,000

1,350,000

Sales Revenue

1,147,500

1,350,000

1,350,000

1,350,000

Interest on Securities

TOTAL CASH OUTFLOW

358,982

358,982

991,269

917,563

983,565

987,197

3. Increase in Fixed Assets

358,982

358,982

Fixed Investments

341,888

341,888

17,094

17,094

4. Increase in Net Working Capital

247,303

43,642

5. Operating Costs

743,966

873,921

873,921

873,921

6. Corporate Tax Paid

109,644

113,276

NET CASH FLOW

-358,982

-358,982

156,231

432,437

366,435

362,803

CUMULATIVE NET CASH FLOW

-358,982

-717,964

-561,732

-129,295

237,140

599,942

Net Present Value (at 18%)

-358,982

-304,222

112,203

263,194

189,003

158,584

Cumulative Net present Value

-358,982

-663,204

-551,001

-287,806

-98,803

59,781

2. Other Income

Pre-production Expenditures

Annex 3: DISCOUNTED CASH FLOW-TOTAL CAPITAL INVESTED

(Continued)

PRODUCTION
5

TOTAL CASH INFLOW

1,350,000

1,350,000

1,350,000

1,350,000

1,350,000

1,350,000

1. Inflow Operation

1,350,000

1,350,000

1,350,000

1,350,000

1,350,000

1,350,000

Sales Revenue

1,350,000

1,350,000

1,350,000

1,350,000

1,350,000

1,350,000

990,829

996,513

1,000,145

1,003,777

1,003,777

1,003,777

3. Increase in Fixed Assets

Fixed Investments

Pre-production Expenditures

5. Operating Costs

873,921

873,921

873,921

873,921

873,921

873,921

6. Corporate Tax Paid

116,908

122,591

126,223

129,855

129,855

129,855

NET CASH FLOW

359,171

353,487

349,855

346,223

346,223

346,223

CUMULATIVE NET CASH FLOW

959,113

1,312,601

1,662,456

2,008,679

2,354,903

2,701,126

Net Present Value (at 18%)

133,048

110,969

93,075

78,058

66,151

56,060

Cumulative Net present Value

192,829

303,798

396,873

474,931

541,082

597,142

Interest on Securities
2. Other Income
TOTAL CASH OUTFLOW

4. Increase in Net Working Capital

Net Present Value (at 18%)

Internal Rate of Return

10

597,142.12

35.8%

Annex 4: NET INCOME STATEMENT ( in Birr)

PRODUCTION
Capacity Utilization (%)
1. Total Income

85%

100%

100%

100%

100%

1,147,500

1,350,000

1,350,000

1,350,000

1,350,000

1,147,500

1,350,000

1,350,000

1,350,000

1,350,000

641,433

754,627

754,627

754,627

754,627

VARIABLE MARGIN

506,067

595,373

595,373

595,373

595,373

(In % of Total Income)

44.10

44.10

44.10

44.10

44.10

152,598

169,360

169,360

169,360

169,360

OPERATIONAL MARGIN

353,469

426,013

426,013

426,013

426,013

(In % of Total Income)

30.80

31.56

31.56

31.56

31.56

Sales Revenue
Other Income
2. Less Variable Cost

3. Less Fixed Costs

4. Less Cost of Finance

156,582

72,641

60,535

48,428

36,321

5. GROSS PROFIT

196,888

353,372

365,479

377,586

389,693

109,644

113,276

116,908

196,888

353,372

255,835

264,310

272,785

6. Income (Corporate) Tax

7. NET PROFIT
RATIOS (%)
Gross Profit/Sales

17.16%

26.18%

27.07%

27.97%

28.87%

Net Profit After Tax/Sales

17.16%

26.18%

18.95%

19.58%

20.21%

Return on Investment

36.62%

42.23%

31.36%

31.00%

30.64%

Return on Equity

48.79%

87.56%

63.39%

65.49%

67.59%

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

PRODUCTION
Capacity Utilization (%)
1. Total Income

10

100%

100%

100%

100%

100%

1,350,000

1,350,000

1,350,000

1,350,000

1,350,000

1,350,000

1,350,000

1,350,000

1,350,000

1,350,000

754,627

754,627

754,627

754,627

754,627

VARIABLE MARGIN

595,373

595,373

595,373

595,373

595,373

(In % of Total Income)

44.10

44.10

44.10

44.10

44.10

162,522

162,522

162,522

162,522

162,522

OPERATIONAL MARGIN

432,851

432,851

432,851

432,851

432,851

(In % of Total Income)

32.06

32.06

32.06

32.06

32.06

4. Less Cost of Finance

24,214

12,107

5. GROSS PROFIT

408,637

420,744

432,851

432,851

432,851

6. Income (Corporate) Tax

122,591

126,223

129,855

129,855

129,855

7. NET PROFIT

286,046

294,521

302,996

302,996

302,996

Gross Profit/Sales

30.27%

31.17%

32.06%

32.06%

32.06%

Net Profit After Tax/Sales

21.19%

21.82%

22.44%

22.44%

22.44%

Return on Investment

30.75%

30.39%

30.03%

30.03%

30.03%

Return on Equity

70.88%

72.98%

75.08%

75.08%

75.08%

Sales Revenue
Other Income
2. Less Variable Cost

3. Less Fixed Costs

RATIOS (%)

Annex 5: Projected Balance Sheet (in Birr)

CONSTRUCTION
TOTAL ASSETS
1. Total Current Assets
Inventory on Materials and Supplies
Work in Progress
Finished Products in Stock
Accounts Receivable
Cash in Hand
Cash Surplus, Finance Available
Securities
2. Total Fixed Assets, Net of Depreciation
Fixed Investment
Construction in Progress
Pre-Production Expenditure
Less Accumulated Depreciation
3. Accumulated Losses Brought Forward
4. Loss in Current Year
TOTAL LIABILITIES
5. Total Current Liabilities
Accounts Payable
Bank Overdraft
6. Total Long-term Debt
Loan A
Loan B
7. Total Equity Capital
Ordinary Capital
Preference Capital
Subsidies
8. Reserves, Retained Profits Brought Forward
9.Net Profit After Tax
Dividends Payable
Retained Profits

Year 1
358,982
0
0
0
0
0
0
0
0
358,982
0
341,888
17,094
0
0
0
358,982
0
0
0
215,389
215,389
0
143,593
143,593
0
0
0
0
0
0

Year 2
1,008,908
290,945
0
0
0
0
0
290,945
0
717,964
341,888
341,888
34,189
0
0
0
1,008,908
0
0
0
605,345
605,345
0
403,563
403,563
0
0
0
0
0
0

PRODUCTION
1
1,330,978
663,079
153,577
21,505
43,010
125,182
29,210
290,594
0
667,899
683,775
0
34,189
50,065
0
0
1,330,978
125,182
125,182
0
605,345
605,345
0
403,563
403,563
0
0
0
196,888
0
196,888

2
1,605,550
987,717
180,679
25,300
50,600
147,273
34,365
549,499
0
617,833
683,775
0
34,189
100,131
0
0
1,605,550
147,273
147,273
0
504,454
504,454
0
403,563
403,563
0
0
196,888
353,372
0
353,372

3
1,760,494
1,192,726
180,679
25,300
50,600
147,273
34,365
754,509
0
567,768
683,775
0
34,189
150,196
0
0
1,760,494
147,273
147,273
0
403,563
403,563
0
403,563
403,563
0
0
550,260
255,835
0
255,835

4
1,923,913
1,406,211
180,679
25,300
50,600
147,273
34,365
967,993
0
517,703
683,775
0
34,189
200,261
0
0
1,923,913
147,273
147,273
0
302,673
302,673
0
403,563
403,563
0
0
806,095
264,310
0
264,310

Annex 5: Projected Balance Sheet (in Birr):

Continued

PRODUCTION
TOTAL ASSETS
1. Total Current Assets
Inventory on Materials and Supplies
Work in Progress
Finished Products in Stock
Accounts Receivable
Cash in Hand
Cash Surplus, Finance Available
Securities
2. Total Fixed Assets, Net of Depreciation
Fixed Investment
Construction in Progress
Pre-Production Expenditure
Less Accumulated Depreciation
3. Accumulated Losses Brought Forward
4. Loss in Current Year
TOTAL LIABILITIES
5. Total Current Liabilities
Accounts Payable
Bank Overdraft
6. Total Long-term Debt
Loan A
Loan B
7. Total Equity Capital
Ordinary Capital
Preference Capital
Subsidies
8. Reserves, Retained Profits Brought Forward
9. Net Profit After Tax
Dividends Payable
Retained Profits

5
2,095,807
1,628,170
180,679
25,300
50,600
147,273
34,365
1,189,953
0
467,638
683,775
0
34,189
250,326
0
0
2,095,807
147,273
147,273
0
201,782
201,782
0
403,563
403,563
0
0
1,070,405
272,785
0
272,785

6
2,280,963
1,856,553
180,679
25,300
50,600
147,273
34,365
1,418,335
0
424,410
683,775
0
34,189
293,554
0
0
2,280,963
147,273
147,273
0
100,891
100,891
0
403,563
403,563
0
0
1,343,190
286,046
0
286,046

7
2,474,593
2,093,410
180,679
25,300
50,600
147,273
34,365
1,655,193
0
381,183
683,775
0
34,189
336,781
0
0
2,474,593
147,273
147,273
0
0
0
0
403,563
403,563
0
0
1,629,236
294,521
0
294,521

8
2,777,589
2,439,634
180,679
25,300
50,600
147,273
34,365
2,001,416
0
337,955
683,775
0
34,189
380,009
0
0
2,777,589
147,273
147,273
0
0
0
0
403,563
403,563
0
0
1,923,757
302,996
0
302,996

9
3,080,584
2,785,857
180,679
25,300
50,600
147,273
34,365
2,347,640
0
294,728
683,775
0
34,189
423,236
0
0
3,080,584
147,273
147,273
0
0
0
0
403,563
403,563
0
0
2,226,753
302,996
0
302,996

10
3,383,580
3,132,080
180,679
25,300
50,600
147,273
34,365
2,693,863
0
251,500
683,775
0
34,189
466,464
0
0
3,383,580
147,273
147,273
0
0
0
0
403,563
403,563
0
0
2,529,748
302,996
0
302,996

10