ANRS INVESTMENT COMMISSIN

www.investamhara.gov.et

Project Profile on the HONEY Processing Plant

Development Studies Associates

(DSA)

Revised July 2016,

Bahir Dar
 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 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
4 Economic and Social Benefit and Justification..............................................10
ANNEXES...............................................................................................................12
 1. Executive Summary
This profile envisages the establishment of a honey processing plant in Amhara National
Regional State.

According to CSA data, honey yield of the region amounts 6.9 million kg annually. The
envisaged plant processes 200,000 kg (200 tons) of honey per annum.

The total investment requirement is estimated at Birr 9.6 million out of which Birr 3.05 million is
for machinery and equipment.

The plant will create employment opportunities for 27 persons.

The project is financially viable with an internal rate of return (IRR) of 59.13% and a net present
value (NPV) of Birr 11.97 million discounted at 18%.

Establishing honey processing plant has wide range of economic and social benefits such as
increasing the level of investment, tax revenue, employment creation, modernization of
agriculture, better nutrition and public health.

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

Honey is the sweet substances produced by honey-bees from the nectar of blossoms or from
secretions of living parts of plant which they collect, transform and combine with specific
substance, and store in honey combs in the nest.

Honey consists essentially of different sugars, predominately glucose and fructose. Besides,
honey contains protein, amino acids, enzymes, organic acids, mineral substances etc. the color of
honey varies from nearly clourless to dark brown. The flavor and aroma vary but are usually
derived from its plant origin.

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 3. Market Study, Plant Capacity and Production Program

3.1 Market Study

With 20 percent of the honey bee population, ANRS comes second after Oromiya in honey
production. It’s share in the national output is 25 percent. Bee keeping is an activity that is
practiced not only in rural areas, but also in urban areas.

If properly undertaken, it can make significant contribution to the regions food requirements
directly in the form of honey and indirectly through the role of bees on crops. Pollination by bees
in crucial for a good set of seeds and fruits

CSA’s estimate of honey yield of the region is 6.9 million kg annually, the estimate done by the
Bureau of Agriculture and Rural Development is 7.91 million kg. The difference is because
CSA’s estimate has not taken into account the yield obtained from intermediate and modern
beehives

In the region, yield of honey being harvested varies depending on the type of bee hive used. The
region’s average for traditional beehive is 6kg (range 5 to 7), intermediate beehive ( top –
beehive) is 15 kg (range 13-18), and modern bee hive (movable frame hive) is 20 kg (range 15-
25 kg).

Honey from the ANRS is noted for its high quality. It has a low moisture content of 18 to 21
percent. Gondar honey has 18.7 percent, Gojjam honey 18.9 percent and Wollo honey 20.5
percent1.

The plant aims at replacing the existing supply of crude honey by strained or processed honey.

3.1.1 Pricing and Distribution

1
Potential Assessment Survey – Livestock Report, DSA, December 2006

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Currently, the price of processed honey is about Birr 190,000/ton. However, the proposed project
is planned to market its honey at Birr 153,000 /ton.

The product can be distributed through wholesale retail chain as it has to reach wide range of
consumer in all towns.

3.2 Plant Capacity

The proposed plant will produce 200 tons of crude honey per year. Establishment of similar
plants in different cities is advisable since the current supply of crude honey is by far larger than
the specified amount.

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 60 percent capacity and then it grows to 70 percent in the
2nd year. The capacity will grow to 85 percent starting from the 3 rd year. Starting from the fourth
year, full capacity will be attained.

This consideration is developed based on the assumption that market and logistics barriers would
take place for the first few years of operation.

4. Raw Materials and Utilities

4.1 Availability and Source of Raw materials

The major raw material – crude honey – is available in large quantity in the region. Some
chemicals and additives will be imported.

4.2 Annual Requirement and Cost of Raw Materials

and Utilities

The types and costs of required raw materials are shown in Table 1 hereunder.

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 Table 1: Required Raw Materials
Cost (Birr)
No. Material Local Foreign
Crude honey (205 ton) 0
 1 15,780,900
Sanitary Chemicals
 2 - 128,300
Lab. Chemicals
3 - 513,200
Filter Aids
- 1,283,000
Glass Jars
5 3,849,000 -
Cartons
 6 641,500 -
Total 9,274,600 1,924,500

Electricity and water are two basic utilities required by the project. When the plant operates at
full capacity the project will require 65,000 kwh of electrical energy; which is estimated to cost
Birr 3,575. Likewise, the project is expected to consume 10,00m3 of water/annum at estimated
cost of Birr 2,650. Accordingly, the total cost of utilities is estimated to be Birr 37,217.

5 Location and Site

The appropriate locations for the envisaged project should be selected in view of the availability
of honey production, infrastructure as well as market for the output. Thus, every major city of
Gojjam, Gonder and Wello are appropriate for this plant.

6 Technology and Engineering

6.1 Production Process

The production of honey begins with the application of heat water on crude honey that contains
bee wax, pollen and other impurities. This is usually done by water jacketed stainless steel trays
that are thermostatically controlled. These trays have a series of channels proof which pass the

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meted honey and wax. This is followed by melting honey and wax mixture flows into a separator
leaving broad and pollen behind the tray thus giving a much cleaner product in box wax and
honey. Here the honey sinks and wax floats.

From the separator, the honey flows into honey storage tank from where it is pumped through a
duplex filter to filter it. Then the honey passes through the filter to a semi-automatic filling
machine where the filling machine fills the empty jars. Then, the filled jars would be closed,
labeled and put into cartons so as to make it ready for delivery.

Alternative technology
After removing the crystals, a moderate heating system (solar one) could be useful to make the
raw honey melt. Then it can be packed in a sealed by a container.
Another alternative is to merge apiculture (beekeeping) with the honey processing business.

6.2 Machinery and Equipment

The required machineries and equipments are given in Table 2 below.

Table 2: Required Machineries and Equipments

Item Description Qty.
1 Strained/Extraction Machine 2

2 Filtering Machine 2
3 Storage tanks /vats 3
4 Filling machine 2
5 Packing machine 2
6 Rebelling machine 3
7 Work tables 5

The total cost of these machines and equipments are estimated at Birr 3.10 million.

Supplier Address
These machines and equipments are available in Addis Ababa market.

6.3 Civil Engineering Cost

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The total site area for the envisaged plant is estimated to be 800m 2 where 200m2 is allocated to
the production place. The land lease is estimated at Birr 48,000; while the civil engineering cost
is estimated to amount Birr 1,026,400

7 Human Resource and Training Requirement

7.1 Human Resource

The human resource requirement is depicted in Table 3 hereunder. The project creates 27 jobs.

Table 3: Human Resource Requirement

Salary/Wage (Birr)
  Job Title No. Monthly Annual
1 General Manager 1 8,981 107,772
2 Secretary 1 2,181 26,173
3 Sales Staff 2 2,181 52,346
4 Accountant 1 2,566 30,792
5 Casher 1 2,053 24,634
6 Clerks 3 1,796 64,663
7 Operator-mechanic 4 2,566 123,168
8 Production workers 6 2,053 147,802
9 Guards 4 1,026 49,267
10 Genitors 4 1,026 49,267
  Total 27 - 675,884
  Employment Benefits 20% of Annual Salary   - 135,177
811,06
Over all total 1

7.2 Training Requirement

Periodic training is important. Birr 76,980 is included in the working capital to finance the
trainings.

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.

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 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%
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 10 days
Finished Products 15 days
Accounts Receivable 30 days
Cash in Hand 30 days
Accounts Payable 30 days

8.2 Investment

The Total Initial Investment is estimated at about Birr 9.5 million of which Birr 3.10 million is
for plant machinery and equipments. The detail is shown in Table 4.

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 Table 4: Total Initial Investment & Working Capital

Total Initial Investment

Item Cost
Land 2,400
Building and civil works 1,026,400
Office equipment 77,623
Plant machinery & equipment 3,096,393
Total Fixed Investment 4,206,572
Pre production capital expenditure 210,329
Total Initial Investment 4,416,901
Working capital at full capacity 5,123,797
Total 9,540,696

*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.

8.3 Production Costs

The total production cost at full capacity is estimated at Birr 24.26 million. The details are shown
in Table 6.

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 Table 5: Production Cost at full Capacity

Total Production Cost at Full Capacity

Items Cost
1.      Raw materials
22195900
2.      Utilities
37,217.00
3.      Wages and Salaries
811061.28
4.      Spares and Maintenance
126197.163
Factory costs
23170375.44
5.      Depreciation
410787.091
6.      Financial costs
686930.2089
  Total Production Cost 24,268,092.74

8.4 Financial Evaluation

I. Profitability
The income statement shows that the proposed project generates profit starting from the first year
of operation. Profit starts at undiscounted Birr 2.2 million in first year and reaches about
Birr 4.15 million in the eight year of the project life. Gross Profit to Sales ratio starts at 14.08%
and reaches 22.86% at eight year. The total profit earned during the whole ten years of operation
amounts Birr to 37.51 million. These indicators prove that the project is profitable.

II. Breakeven Analysis

The breakeven analysis shows that the Total Revenue equals the Total Cost at 12.48% of
capacity which is achieved in the first year of operation.
III. Payback Period

The project pays back its initial investment at the first year of operation.

IV. Simple Rate of Return

The simple rate of return is 52.4%.

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 V. Internal Rate of Return and Net Present Value

The Internal Rate of Return is 59.1% and the Net Present Value at 18% discount rate per annum
is Birr 11.9 million.
VI. Sensitivity Analysis
A 10% reduction in sales reduces the total profit to 23 million and it still remains viable with an
IRR of 33.63%. A 10% increase in price of raw materials reduces the total profit to Birr 28
million.

4 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:

A. Profit Generation

The project is found to be financially viable and earns a total profit of Birr 44.02 million within
the project life.

B. Tax Revenue

In the project life under consideration, the government will collect about Birr 16 million from
corporate tax payment alone (i.e. excluding income tax, sales tax and VAT).

C. Employment and Income Generation

The proposed project is expected to create employment opportunity to 27 persons. Consequently

the project creates income of Birr 811,061 per year. This would be one of the commendable
accomplishments of the project.

D. Diversification and InterSectoral linkage

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The proposed project helps to diversify ANRS and Ethiopian economy. It contributes to
industrialization of the region’s as well as the county’s economy.

E. Modernization
The proposed project will contribute a lot in modernizing the agriculture and accelerate the on-
going transformation in the sector.

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ANNEXES

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

Capacity Utilization (%) 0 0 60% 70% 85% 100%

1. Total Inventory 0 0 4845663 5653275 6864692 8076105

Raw Materials in Stock- Total 0 0 1830726 2135846 2593525 3051208

Raw Material-Local 0 0 1326856 1547999 1879710 2211425

Raw Material-Foreign 0 0 503870 587848 713815 839783

Factory Supplies in Stock 0 0 15473 18052 21921 25788

Spare Parts in Stock and Maintenance 0 0 8260 9638 11701 13767

Work in Progress 0 0 386827 451298 548005 644713

Finished Products 0 0 773654 902598 1096010 1289425

2. Accounts Receivable 0 0 2015478 2351390 2855257 3359128

3. Cash in Hand 0 0 59339 69228 84062 98896

CURRENT ASSETS 0 0 5089753 5938047 7210486 8482924

4. Current Liabilities 0 0 2015478 2351390 2855257 3359128

Accounts Payable 0 0 2015478 2351390 2855257 3359128

TOTAL NET WORKING CAPITAL
REQUIREMENTS 0 0 3074278 3586657 4355228 5123796

INCREASE IN NET WORKING CAPITAL 0 0 3074278 512379 768568 768568

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 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 8076105 8076105 8076105 8076105 8076105 8076105

Raw Materials in Stock-Total 3051208 3051208 3051208 3051208 3051208 3051208

Raw Material-Local 2211425 2211425 2211425 2211425 2211425 2211425

Raw Material-Foreign 839783 839783 839783 839783 839783 839783

Factory Supplies in Stock 25788 25788 25788 25788 25788 25788

Spare Parts in Stock and Maintenance 13767 13767 13767 13767 13767 13767

Work in Progress 644713 644713 644713 644713 644713 644713

Finished Products 1289425 1289425 1289425 1289425 1289425 1289425

2. Accounts Receivable 3359128 3359128 3359128 3359128 3359128 3359128

3. Cash in Hand 98896 98896 98896 98896 98896 98896

CURRENT ASSETS 8482924 8482924 8482924 8482924 8482924 8482924

4. Current Liabilities 3359128 3359128 3359128 3359128 3359128 3359128

Accounts Payable 3359128 3359128 3359128 3359128 3359128 3359128

TOTAL NET WORKING CAPITAL
REQUIREMENTS 5123796 5123796 5123796 5123796 5123796 5123796

INCREASE IN NET WORKING CAPITAL 0 0 0 0 0 0

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 Annex 2: Cash Flow Statement (in Birr)
CONSTRUCTION PRODUCTION
  Year 1 Year 2 1 2 3 4
TOTAL CASH INFLOW 2208451 7332247 20490678 21890312 26677070 31295870
1. Inflow Funds 2208451 7332247 2015478 335912 503870 503870
Total Equity 883381 2932900 0 0 0 0
Total Long Term Loan 1325070 4399348 0 0 0 0
Total Short Term Finances 0 0 2015478 335912 503870 503870
2. Inflow Operation 0 0 18475200 21554400 26173200 30792000
Sales Revenue 0 0 18475200 21554400 26173200 30792000
Interest on Securities 0 0 0 0 0 0
3. Other Income 0 0 0 0 0 0
TOTAL CASH OUTFLOW 2208451 2208451 20552623 18871480 24274055 28030132
4. Increase In Fixed Assets 2208451 2208451 0 0 0 0
Fixed Investments 2103286 2103286 0 0 0 0
Pre-production
Expenditures 105165 105165 0 0 0 0
5. Increase in Current Assets 0 0 5089753 848291 1272438 1272438
6. Operating Costs 0 0 14048303 16382188 19883018 23383845
7. Corporate Tax Paid 0 0 0 0 1592085 1961825
8. Interest Paid 0 0 1414564 686931 572441 457954
9. Loan Repayments 0 0 0 954070 954070 954070
10. Dividends Paid 0 0 0 0 0 0
Surplus (Deficit) 0 5123796 -61946 3018832 2403015 3265738
Cumulative Cash Balance 0 5123796 5061851 8080680 10483696 13749434

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 Annex 2: Cash Flow Statement (in Birr): Continued
PRODUCTION
  5 6 7 8 9 10
TOTAL CASH INFLOW 30792000 30792000 30792000 30792000 30792000 30792000
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 30792000 30792000 30792000 30792000 30792000 30792000
Sales Revenue 30792000 30792000 30792000 30792000 30792000 30792000
Interest on Securities 0 0 0 0 0 0
3. Other Income 0 0 0 0 0 0
TOTAL CASH OUTFLOW 26677550 26610028 26529887 25495676 25495676 25495676
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 23383845 23383845 23383845 23383845 23383845 23383845
7. Corporate Tax Paid 1996171 2043136 2077482 2111831 2111831 2111831
8. Interest Paid 343464 228977 114487 0 0 0
9. Loan Repayments 954070 954070 954070 0 0 0
10. Dividends Paid 0 0 0 0 0 0
Surplus (Deficit) 4114450 4181972 4262113 5296324 5296324 5296324
Cumulative Cash Balance 17863884 22045856 26307966 31604293 36900617 42196941

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 Annex 3: DISCOUNTED CASH FLOW-TOTAL CAPITAL INVESTED
CONSTRUCTION PRODUCTION
  Year 1 Year 2 1 2 3 4
TOTAL CASH INFLOW 0 0 18475200 21554400 26173200 30792000

1. Inflow Operation 0 0 18475200 21554400 26173200 30792000

Sales Revenue 0 0 18475200 21554400 26173200 30792000

Interest on Securities 0 0 0 0 0 0

2. Other Income 0 0 0 0 0 0

TOTAL CASH OUTFLOW 2208451 2208451 17122582 16894570 22243674 26114238

3. Increase in Fixed Assets 2208451 2208451 0 0 0 0

Fixed Investments 2103286 2103286 0 0 0 0

Pre-production Expenditures 105165 105165 0 0 0 0

4. Increase in Net Working
Capital 0 0 3074278 512379 768568 768568

5. Operating Costs 0 0 14048303 16382188 19883018 23383845

6. Corporate Tax Paid 0 0 0 0 1592085 1961825

NET CASH FLOW -2208451 -2208451 1352618 4659830 3929526 4677762

CUMULATIVE NET CASH
FLOW -2208451 -4416902 -3064281 1595549 5525075 10202837

Net Present Value (at 18%) -2208451 -1871569 971429 2836118 2026806 2044691

Cumulative Net present Value -2208451 -4080020 -3108588 -272471 1754336 3799027

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 Annex 3: DISCOUNTED CASH FLOW-TOTAL CAPITAL INVESTED (Continued)
PRODUCTION
  5 6 7 8 9 10
TOTAL CASH INFLOW 30792000 30792000 30792000 30792000 30792000 30792000

1. Inflow Operation 30792000 30792000 30792000 30792000 30792000 30792000

Sales Revenue 30792000 30792000 30792000 30792000 30792000 30792000

Interest on Securities 0 0 0 0 0 0

2. Other Income 0 0 0 0 0 0

TOTAL CASH OUTFLOW 25380016 25426982 25461330 25495676 25495676 25495676

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 23383845 23383845 23383845 23383845 23383845 23383845

6. Corporate Tax Paid 1996171 2043136 2077482 2111831 2111831 2111831

NET CASH FLOW 5411984 5365018 5330670 5296324 5296324 5296324

CUMULATIVE NET CASH
FLOW 15614821 20979839 26310509 31606833 36903157 42199484

Net Present Value (at 18%) 2004770 1684212 1418161 1194088 1011941 857575

Cumulative Net present Value 5803797 7488009 8906173 10100261 11112199 11969774

Net Present Value (at 18%) 11,969,775.37

Internal Rate of Return 59.10%

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 Annex 4: NET INCOME STATEMENT ( in Birr)
PRODUCTION
  1 2 3 4 5
Capacity Utilization (%) 60% 70% 85% 100% 100%

1. Total Income 18475200 21554400 26173200 30792000 30792000

Sales Revenue 18475200 21554400 26173200 30792000 30792000
Other Income 0 0 0 0 0
2. Less Variable Cost 13808657 16110100 19562265 23014431 23014431
VARIABLE MARGIN 4666543 5444300 6610935 7777569 7777569
(In % of Total Income) 65 65 65 65 65
3. Less Fixed Costs 650432 682874 731538 780203 780203
OPERATIONAL MARGIN 4016108 4761423 5879396 6997367 6997367
(In % of Total Income) 56 57 58 58 58
4. Less Cost of Finance 1414564 686931 572441 457954 343464
5. GROSS PROFIT 2601544 4074492 5306955 6539415 6653902
6. Income (Corporate) Tax 0 0 1592085 1961825 1996171
7. NET PROFIT 2601544 4074492 3714867 4577590 4657731
RATIOS (%)  
Gross Profit/Sales 14.08% 18.90% 20.28% 21.24% 21.61%
Net Profit After Tax/Sales 14.08% 18.90% 14.19% 14.87% 15.13%
Return on Investment 53.61% 59.49% 48.87% 52.78% 52.42%
Return on Equity 68.17% 127.02% 97.34% 119.95% 122.05%

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 Annex 4: NET INCOME STATEMENT (in Birr): Continued
PRODUCTION
  6 7 8 9 10
Capacity Utilization (%) 100% 100% 100% 100% 100%

1. Total Income 30792000 30792000 30792000 30792000 30792000

Sales Revenue 30792000 30792000 30792000 30792000 30792000
Other Income 0 0 0 0 0
2. Less Variable Cost 23014431 23014431 23014431 23014431 23014431
VARIABLE MARGIN 7777569 7777569 7777569 7777569 7777569
(In % of Total Income) 25 25 25 25 25
3. Less Fixed Costs 738138 738138 738138 738138 738138
OPERATIONAL MARGIN 7039434 7039434 7039434 7039434 7039434
(In % of Total Income) 23 23 23 23 23
4. Less Cost of Finance 228977 114487 0 0 0
5. GROSS PROFIT 6810457 6924944 7039434 7039434 7039434
6. Income (Corporate) Tax 2043136 2077482 2111831 2111831 2111831
7. NET PROFIT 4767320 4847461 4927603 4927603 4927603
RATIOS (%)  
Gross Profit/Sales 22.12% 22.49% 22.86% 22.86% 22.86%
Net Profit After Tax/Sales 15.48% 15.74% 16.00% 16.00% 16.00%
Return on Investment 52.37% 52.01% 51.65% 51.65% 51.65%
Return on Equity 124.92% 127.02% 129.12% 129.12% 129.12%

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 [

Annex 5: Projected Balance Sheet (in Birr)

CONSTRUCTION PRODUCTION
  Year 1 Year 2 1 2 3 4
TOTAL ASSETS 2208450.99 9540698.49 14157717.68 17614055.53 20878720.88 25006111.35
1. Total Current Assets 0.00 5123796.50 10151604.07 14018727.73 17694181.45 22232357.73
Inventory on Materials and Supplies 0.00 0.00 1854458.46 2163533.16 2627147.78 3090762.40
Work in Progress 0.00 0.00 386827.07 451297.82 548005.22 644712.63
Finished Products in Stock 0.00 0.00 773654.13 902598.20 1096010.45 1289425.26
Accounts Receivable 0.00 0.00 2015477.53 2351390.02 2855257.48 3359127.51
Cash in Hand 0.00 0.00 59338.75 69228.11 84062.16 98896.21
Cash Surplus, Finance Available 0.00 5123796.50 5061850.69 8080680.41 10483695.79 13749433.72
Securities 0.00 0.00 0.00 0.00 0.00 0.00
2. Total Fixed Assets, Net of Depreciation 2208450.99 4416901.99 4006113.61 3595327.81 3184539.43 2773753.62
Fixed Investment 0.00 2103286.05 4206572.10 4206572.10 4206572.10 4206572.10
Construction in Progress 2103286.05 2103286.05 0.00 0.00 0.00 0.00
Pre-Production Expenditure 105164.94 210329.89 210329.89 210329.89 210329.89 210329.89
Less Accumulated Depreciation 0.00 0.00 410788.37 821574.18 1232362.56 1643148.36
3. Accumulated Losses Brought Forward 0.00 0.00 0.00 0.00 0.00 0.00
4. Loss in Current Year 0.00 0.00 0.00 0.00 0.00 0.00
TOTAL LIABILITIES 2208450.99 9540698.49 14157717.68 17614055.53 20878720.88 25006111.35
5. Total Current Liabilities 0.00 0.00 2015477.53 2351390.02 2855257.48 3359127.51
Accounts Payable 0.00 0.00 2015477.53 2351390.02 2855257.48 3359127.51
Bank Overdraft 0.00 0.00 0.00 0.00 0.00 0.00
6. Total Long-term Debt 1325069.57 5724417.55 5724417.55 4770347.96 3816278.37 2862208.78
Loan A 1325069.57 5724417.55 5724417.55 4770347.96 3816278.37 2862208.78
Loan B 0.00 0.00 0.00 0.00 0.00 0.00
7. Total Equity Capital 883381.42 3816278.37 3816278.37 3816278.37 3816278.37 3816278.37
Ordinary Capital 883381.42 3816278.37 3816278.37 3816278.37 3816278.37 3816278.37
Preference Capital 0.00 0.00 0.00 0.00 0.00 0.00
Subsidies 0.00 0.00 0.00 0.00 0.00 0.00
8. Reserves, Retained Profits Brought
Forward 0.00 0.00 0.00 2601544.23 6676036.61 10390906.66
9. Net Profit After Tax 0.00 0.00 2601544.23 4074492.38 3714867.48 4577590.04
Dividends Payable 0.00 0.00 0.00 0.00 0.00 0.00

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Retained Profits 0.00 0.00 2601544.23 4074492.38 3714867.48 4577590.04

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 Annex 5: Projected Balance Sheet (in Birr): Continued
PRODUCTION
  5 6 7 8 9 10
TOTAL ASSETS 28709773 32523021 36416413 41344018 46271621 51199224
1. Total Current Assets 26346808 30528777 34790890 40087217 45383541 50679865
Inventory on Materials and Supplies 3090762 3090762 3090762 3090762 3090762 3090762
Work in Progress 644713 644713 644713 644713 644713 644713
Finished Products in Stock 1289425 1289425 1289425 1289425 1289425 1289425
Accounts Receivable 3359128 3359128 3359128 3359128 3359128 3359128
Cash in Hand 98896 98896 98896 98896 98896 98896
Cash Surplus, Finance Available 17863884 22045856 26307966 31604293 36900617 42196941
Securities 0 0 0 0 0 0
2. Total Fixed Assets, Net of Depreciation 2362965 1994244 1625523 1256801 888080 519358
Fixed Investment 4206572 4206572 4206572 4206572 4206572 4206572
Construction in Progress 0 0 0 0 0 0
Pre-Production Expenditure 210330 210330 210330 210330 210330 210330
Less Accumulated Depreciation 2053937 2422658 2791379 3160101 3528822 3897544
3. Accumulated Losses Brought Forward 0 0 0 0 0 0
4. Loss in Current Year 0 0 0 0 0 0
TOTAL LIABILITIES 28709773 32523021 36416413 41344018 46271621 51199224
5. Total Current Liabilities 3359128 3359128 3359128 3359128 3359128 3359128
Accounts Payable 3359128 3359128 3359128 3359128 3359128 3359128
Bank Overdraft 0 0 0 0 0 0
6. Total Long-term Debt 1908139 954070 0 0 0 0
Loan A 1908139 954070 0 0 0 0
Loan B 0 0 0 0 0 0
7. Total Equity Capital 3816278 3816278 3816278 3816278 3816278 3816278
Ordinary Capital 3816278 3816278 3816278 3816278 3816278 3816278
Preference Capital 0 0 0 0 0 0
Subsidies 0 0 0 0 0 0
8. Reserves, Retained Profits Brought
Forward 14968494 19626228 24393546 29241007 34168610 39096215
9. Net Profit After Tax 4657731 4767320 4847461 4927603 4927603 4927603
Dividends Payable 0 0 0 0 0 0
Retained Profits 4657731 4767320 4847461 4927603 4927603 4927603

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