aluminum household utensil making plant

7/28/2019 Aluminum Household Utensil Making Plant

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Investment Office ANRS

Project Profile on the EstablishmentOf Aluminium Household Utensil

Making Plant


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Table of Contents

1.Executive Summary..............................................................................................3

2.Product Description and Application.................................................................33.Market Study, Plant Capacity and Production Program.................................4

3.1Market Study...........................................................................................................................4

3.1.1Present Demand and Supply............................................................................................4

3.1.2Projected Demand............................................................................................................43.1.3Pricing and Distribution...................................................................................................5

3.2Plant Capacity.........................................................................................................................5

3.3Production Program................................................................................................................5

4.Raw Materials and Utilities.................................................................................5

4.1Availability and Source of Raw Materials..............................................................................5

4.2Annual Requirement and Cost of Raw Materials and Utilities...............................................5

5Location and Site...................................................................................................6

6Technology and Engineering ...............................................................................6

6.1Production Process..................................................................................................................6

6.2Machinery and Equipment......................................................................................................7

6.3Civil Engineering Cost............................................................................................................9


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1. Executive Summary

This project profile deals with the establishment of Aluminium Household Utensil Making Plant

in Amhara National Regional State. The following presents the main findings of the study

Demand projection divulges that the domestic demand for aluminium household utensils is

substantial and is increasing with time. Accordingly, the planned plant is set to produce 700,000

various types of utensils annually. The total investment cost of the project including working

capital is estimated at Birr 26.82 million and creates79 new jobs.

The financial result indicates that the project will generate profit beginning from the first year of

operation. Moreover, the project will break even at 26.41% of capacity utilization and it will

payback fully the initial investment less working capital in third year of operation. The result

further show that the calculated IRR of the project is 20.9% and te NPV discounted at 18% per

annum is Birr 2.39 million.

In addition to this, the proposed project possesses wide range of economic and social benefits

such as increasing the level of investment, tax revenue, employment creation and diversification.


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The proposed plant produces kitchen vessels such as pans and kettles for boiling, and bowls and

tubs using aluminium. The plant, however, will be able to produce almost any other sort of

household vessels. Market Study, Plant Capacity and Production Program

3. Market Study, Plant Capacity and Production Program

3.1 Market Study

3.1.1 Present Demand and Supply

If we assume that there one aluminium utensil per household, the current demand in ANRS is

approximately 2,956,632. The proposed plan produces only 700,000 units (a small fraction of the

demand) when it operates at full capacity. If we add the demand from the neighbouring regions,

the total demand will be much more than the plants capacity.

3.1.2 Projected Demand

The future demand is projected taking a conservative assumption that demand will increase by

2% annum. Table 1 depicts the outcome.

Table 1: Projected Demand

Demand


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3.1.3 Pricing and Distribution

Based on the market research result and the capacity of the envisaged plant, the average selling

price of aluminium utensils has been estimated at Birr 40.00.

3.2 Plant Capacity

Thus, given the expected demand for aluminium utensils presented earlier, and the planned

technology, the envisaged plant is set to produce 700,000 annually.

3.3 Production Program

The program is scheduled based on the consideration that the envisaged plant will work 275 days

in a year in 1 shift, where the remaining days will be holidays and for maintenance. During the

first year of operation the plant will operate at 75 percent capacity and then it grows to 85

percent in the 2nd year. The capacity will grow to 100 percent starting from the 3rd year. This

consideration is developed based on the assumption that market and logistics barriers would take

place for the first two years of operation.

4. Raw Materials and Utilities


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Table 2: Required Raw Material at Full Capacity

No. Material

Qty

(Kg)

Price

Unit Local Foreign TotalAluminum rod (99%

aluminum)

35000

0

52 3,640,00

0

14,560,00

0

18,200,000

Total 35000

0

3,640,00

0

14,560,00

0

18,200,000

5 Location and Site

The location of the plant should be in big towns where real estates, hotels, commercial buildings,

residential houses, government buildings etc are to be built. In this regard, Bahir Dar could be

the most preferred location. Bahir Dar is also an ideal location to collect the plant's raw materials

from Addis and distribute its out put to the rest of zonal towns of the region.

6 Technology and Engineering

6.1 Production Process

The plant has three lines:

the pan body, bowl, and tub line;

the kettle line; and


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In the finishing and packing process the body and lid will be fastened in one piece during the

assembly process for products which require a lid, so two lines, on the whole, would be

sufficient. During the manufacturing process a side line would be desirable for surface treatment.

That is, external damage, slight corrosion, or other defects will generally occur during

manufacturing., Some of these defective products can be reprocessed. In order to reprocess the

defective products, however, the surface layer of the vessel must be removed in most cases.

Caustic soda is used to do the work. This line is called the alkaline treatment line. This line is

generally attached to the vessels manufacturing plant. The explanation made so far is the so

called direct manufacturing line.

Alternative technology

There are three stages in the production process of aluminum utensils. These are pressing,

beading and coating. Aluminum scrap or ingot first melted in iron crucible and molten metal

cast into the slab type open mould by mechanical process into rectangular billets. The billets,

after annealing and cleaning are pressed through re-rolling machine three to five times to make

the sheet of reaustic thickness. The stamped circle is now ready for deep drawing to get the

shape of the desired utensils. Shaping refers to pressing with dies on press, beading on the lathe

and surface treatment. Main plant and machinery include coal fired furnace, reversible moulds

could rolling mill pre heating circle cutting and stamping machine de drawing double action


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Table 3: Manufacturing Facilities for

Item

No.

ofset Capacity

1) Two-high roller for oil coating 1 5,000/8hrs.

2) 80-ton drawing pres(with auto-leader or by natural) 1 3,500/8hrs.

3)Spining machine for surface smoothing(with auto-loader or by manual) 1 2,000-2,400/8hrs.

4)Trimming machine(including curling if necessary)(with auto or manual loading) 1 2000-2,500/8hrs.

5)Outside polishing machine(full automatic machine is recommendable) 1 2,000-3,000/8hrs.

6) Perforating machine (auto or manual) 1 3,000-5,000/8hrs.

7)Anodizing line (including sealing)automatic line except lading and unloading) 1 2,000-4,000/8hrs.

8)Degreasing line (by chemical agent)(auto or manual) 1 2,000-4,000/8hrs.

9) Finish polisher (manual or auto 1 2,000-3,000/8hrs.

10) Riveting machine (manual or auto) 4 500-1,000/set/8hrs.

11)Assembling & Packaging conveyer line(usually by manual with tools) 1

12) Trimming & Curling machine (for bowl & tub) 1 2,000/8hrs.

13) Inside Polishing machine(auto or manual) 1 2,000/8hrs.

Table 4: Auxiliary Facilities

1) Belt Conveyor lines and /or hanger conveyor lines

2)

Alkaline treatment line 10% NaOH solution

(70oC) Rinse10% HNO3 solution -Rinse- Drying)


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Manufactory Company

Tel: 86-776-5608888 Fax: 86-776-5608666

Add: Pingguo Industrial Zone, Baise, Guangxi, China.PC.: 531400

Email: [email protected]

The technology of Machinery and Equipment of the plant could also be selected from companies

of Italy and Germany.

6.3 Civil Engineering Cost

The total site area for the envisaged plant is estimated to be 4,000 m2 where 2000m2 is allocated

to the production place and the remaining space is left for stores, office buildings and facilities.

The land lease is estimated at Birr 240,000 while the buildings cost Birr 4 million.

The annual power requirement of the plant is estimated at 380,000 kwh. Water consumption will

be about 68750 m3 per day. Thus, the annual cost for utilities will amount to Birr 209,000 for

power and Birr 182,188 for water summing up to Birr 391,188.

7 Human Resource and Training Requirement

7.1 Human Resource


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Job Title No.

Salary/Wage (Birr)

Monthly Annual

1 General Manager 1 4,500 54,000

2 Production Head 1 3,500 42,000

3 Technicians 6 2,000 144,000

4 Ass. Machinists 12 1,000 144,000

5 Labourers 40 500 240,000

6 Personnel Head 1 2,000 24,0007 Secretary 1 850 10,200

8 Accountant 1 2,000 24,000

9 Marketing Officer 1 2,000 24,000

10 Casher 1 850 10,200

11 Security 5 350 21,000

12 Clerks 4 800 38,400

13 Genitor 5 350 21,000

Total 79 796,800

Employment Benefits 20% of AnnualSalary 159,360

956,160

The envisaged plant therefore, creates 79 job opportunity. The professionals and support staffs


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8 Financial Analysis

8.1 Underlying Assumption

The financial analysis is based on the data provided in the preceding chapters and the following

assumptions.

A. Construction and Finance

Construction period 2 year

Source of finance 40% equity and 60% loan

Tax holidays 2 years

Bank interest rate 12%

Discount for cash flow 18%

Value of land Based on lease rate of ANRS

Spare Parts, Repair & Maintenance 3% of fixed investment

B. Depreciation

Building 5%


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C. Working Capital (Minimum Days of Coverage)

Raw Material-Local 30

Raw Material-Foreign 120

Factory Supplies in Stock 30

Spare Parts in Stock and Maintenance 30

Work in Progress 10

Finished Products 15Accounts Receivable 30

Cash in Hand 30

Accounts Payable 30

8.2 Investment

The total investment cost of the project including working capital is estimated at Birr 26.82

million as shown in table 5 below.

Table 5: Total Initial Investment and Working Capital

Total Initial InvestmentItem Cost

Land 12,000.00


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8.3 Production Costs

The total production cost at full capacity operation is estimated at Birr 23.71million as detailed in

table 6 below.

Table 6: Total Production Cost at Full Capacity

Total Production Cost at Full Capacity

Items Cost1. Raw materials 18,200,000.00

2. Utilities 391,187.50

3. Wages and Salaries 956,160.00

4. Spares and Maintenance 515,910.00

Factory costs 20,063,257.505. Depreciation 1,715,470.00

6. Financial costs1,930,774.64

Total Production Cost23,709,502.14

8.4 Financial Evaluation

I. Profitability


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III. Payback Period

Investment cost and income statement projection are used in estimating the project payback

period. The projects will payback fully the initial investment less working capital in third year of

operation.

IV. Simple Rate of Return

For the envisaged plant the simple rate of return equals to 17.6%.

V. Internal Rate of Return and Net Present Value

Based on cash flow statement described in the annex part, the calculated IRR of the project is

20.9% and the net present value at 18 % discount is Birr 2.39 million.

VI. Sensitivity Analysis

The envisaged plant is profitable even with considerable cost increment. That is the plant

maintains to be profitable starting from the first year when 10 % cost increment takes place in

the sector. This result is accompanied by IRR value of 22.18%% with payback period of four

years.


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B. Tax Revenue

In the project life under consideration, the region will collect about Birr 9.45million from

corporate tax payment alone (i.e. excluding income tax, sales tax and VAT). Such result create

additional fund for the regional government that will be used in expanding social and other basic

services in the region

C. Import Substitution and Foreign Exchange Saving

This plan has string import substitution effect and saves hard currency

D. Employment and Income Generation

The proposed project is expected to create employment opportunity to 79l citizens of the region.

This would be one of the commendable accomplishments of the project.

E. Diversification

The project contributes a lot in diversification of the regions as well as the countrys economy.


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ANNEXES


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

CONSTRUCTION PRODUCTION

Year 1 Year 2 1 2 3 4

Capacity Utilization (%) 0 0 75% 85% 100% 100%

1. Total Inventory 0 0 11,522,270 13,058,573 15,363,026 15,363,026

Raw Materials in Stock- Total 0 0 5,062,909 5,737,964 6,750,545 6,750,545

Raw Material-Local 0 0 297,818 337,527 397,091 397,091

Raw Material-Foreign 0 0 4,765,091 5,400,436 6,353,455 6,353,455

Factory Supplies in Stock 0 0 17,819 20,195 23,759 23,759

Spare Parts in Stock and Maintenance 0 0 42,211 47,839 56,281 56,281

Work in Progress 0 0 445,474 504,871 593,965 593,965

Finished Products 0 0 890,948 1,009,741 1,187,931 1,187,931

2. Accounts Receivable 0 0 2,290,909 2,596,364 3,054,545 3,054,545

3. Cash in Hand 0 0 110,238 124,936 146,983 146,983

CURRENT ASSETS 0 0 8,860,507 10,041,908 11,814,010 11,814,010

4. Current Liabilities 0 0 2,290,909 2,596,364 3,054,545 3,054,545

Accounts Payable 0 0 2,290,909 2,596,364 3,054,545 3,054,545

TOTAL NET WORKING CAPITAL REQUIREMENTS 0 0 6,569,598 7,445,545 8,759,464 8,759,464

INCREASE IN NET WORKING CAPITAL 0 0 6,569,598 875,946 1,313,920 0

1


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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 15,363,026 15,363,026 15,363,026 15,363,026 15,363,026 15,363,026

Raw Materials in Stock-Total 6,750,545 6,750,545 6,750,545 6,750,545 6,750,545 6,750,545

Raw Material-Local 397,091 397,091 397,091 397,091 397,091 397,091

Raw Material-Foreign 6,353,455 6,353,455 6,353,455 6,353,455 6,353,455 6,353,455

Factory Supplies in Stock 23,759 23,759 23,759 23,759 23,759 23,759

Spare Parts in Stock and Maintenance 56,281 56,281 56,281 56,281 56,281 56,281

Work in Progress 593,965 593,965 593,965 593,965 593,965 593,965

Finished Products 1,187,931 1,187,931 1,187,931 1,187,931 1,187,931 1,187,931

2. Accounts Receivable 3,054,545 3,054,545 3,054,545 3,054,545 3,054,545 3,054,545

3. Cash in Hand 146,983 146,983 146,983 146,983 146,983 146,983

CURRENT ASSETS 11,814,010 11,814,010 11,814,010 11,814,010 11,814,010 11,814,010

4. Current Liabilities 3,054,545 3,054,545 3,054,545 3,054,545 3,054,545 3,054,545

Accounts Payable 3,054,545 3,054,545 3,054,545 3,054,545 3,054,545 3,054,545

TOTAL NET WORKING CAPITAL REQUIREMENTS 8,759,464 8,759,464 8,759,464 8,759,464 8,759,464 8,759,464

INCREASE IN NET WORKING CAPITAL 0 0 0 0 0 0

2


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Annex 2: Cash Flow Statement (in Birr)


Year 1 Year 2 1 2 3 4TOTAL CASH INFLOW 9,028,425 17,787,889 23,290,909 24,105,455 28,458,182 28,000,000

1. Inflow Funds 9,028,425 17,787,889 2 ,290,909 305,455 458,182 0

Total Equity 3,611,370 7,115,156 0 0 0 0

Total Long Term Loan 5,417,055 10,672,734 0 0 0 0

Total Short Term Finances 0 0 2,290,909 305,455 458,182 0

2. Inflow Operation 0 0 21,000,000 23,800,000 28,000,000 28,000,000

Sales Revenue 0 0 21,000,000 23,800,000 28,000,000 28,000,000

Interest on Securities 0 0 0 0 0 0

3. Other Income 0 0 0 0 0 0

TOTAL CASH OUTFLOW 9,028,425 9,028,425 27,995,281 22,771,842 27,425,340 25,427,982

4. Increase In Fixed Assets 9,028,425 9,028,425 0 0 0 0

Fixed Investments 8,598,500 8,598,500 0 0 0 0

Pre-production Expenditures 429,925 429,925 0 0 0 0

5. Increase in Current Assets 0 0 8,860,507 1,181,401 1,772,101 0

6. Operating Costs 0 0 15,001,521 16,978,035 19,942,805 19,942,805

7. Corporate Tax Paid 0 0 0 0 1,419,824 1,516,363

8. Interest Paid 0 0 4,133,252 1,930,775 1,608,979 1,287,1839.Loan Repayments 0 0 0 2,681,631 2,681,631 2,681,631

10.Dividends Paid 0 0 0 0 0 0

Surplus (Deficit) 0 8,759,464 -4,704,372 1,333,613 1,032,841 2,572,018

Cumulative Cash Balance 0 8,759,464 4,055,093 5,388,706 6,421,547 8,993,565

3


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

PRODUCTION

5 6 7 8 9 10

TOTAL CASH INFLOW 28,000,000 28,000,000 28,000,000 28,000,000 28,000,000 28,000,000

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 28,000,000 28,000,000 28,000,000 28,000,000 28,000,000 28,000,000

Sales Revenue 28,000,000 28,000,000 28,000,000 28,000,000 28,000,000 28,000,000


3. Other Income 0 0 0 0 0 0TOTAL CASH OUTFLOW 25,202,725 25,044,059 24,818,802 21,911,913 21,911,913 21,911,913

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 19,942,805 19,942,805 19,942,805 19,942,805 19,942,805 19,942,805

7. Corporate Tax Paid 1,612,901 1,776,031 1,872,570 1,969,109 1,969,109 1,969,109

8. Interest Paid 965,387 643,592 321,796 0 0 0

9. Loan Repayments 2,681,631 2,681,631 2,681,631 0 0 0


Surplus (Deficit) 2,797,275 2,955,941 3,181,198 6,088,087 6,088,087 6,088,087

Cumulative Cash Balance 11,790,840 14,746,781 17,927,979 24,016,066 30,104,153 36,192,239

4


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

PRODUCTION

5 6 7 8 9 10


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


Sales Revenue 28,000,000 28,000,000 28,000,000 28,000,000 28,000,000 28,000,000


3. Other Income 0 0 0 0 0 0TOTAL CASH OUTFLOW 25,202,725 25,044,059 24,818,802 21,911,913 21,911,913 21,911,913

4. Increase In Fixed Assets 0 0 0 0 0 0



5. Increase in Current Assets 0 0 0 0 0 0

6. Operating Costs 19,942,805 19,942,805 19,942,805 19,942,805 19,942,805 19,942,805


8. Interest Paid 965,387 643,592 321,796 0 0 0

9. Loan Repayments 2,681,631 2,681,631 2,681,631 0 0 0


Surplus (Deficit) 2,797,275 2,955,941 3,181,198 6,088,087 6,088,087 6,088,087

Cumulative Cash Balance 11,790,840 14,746,781 17,927,979 24,016,066 30,104,153 36,192,239

5


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Annex 3: DISCOUNTED CASH FLOW-TOTAL CAPITAL INVESTED (Continued)

PRODUCTION

5 6 7 8 9 10



Sales Revenue 28,000,000 28,000,000 28,000,000 28,000,000 28,000,000 28,000,000


2. Other Income 0 0 0 0 0 0

TOTAL CASH OUTFLOW 21,555,706 21,718,836 21,815,375 21,911,913 21,911,913 21,911,913

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



4. Increase in Net Working Capital 0 0 0 0 0 0

5. Operating Costs 19,942,805 19,942,805 19,942,805 19,942,805 19,942,805 19,942,805


NET CASH FLOW 6,444,294 6,281,164 6,184,625 6,088,087 6,088,087 6,088,087

CUMULATIVE NET CASH FLOW 7,046,452 13,327,616 19,512,241 25,600,328 31,688,414 37,776,501Net Present Value (at 18%) 2,387,170 1,971,815 1,645,346 1,372,596 1,163,217 985,777

Cumulative Net present Value -4,746,537 -2,774,722 -1,129,375 243,221 1,406,438 2,392,215

Net Present Value (at 18%) 2,392,214.78

Internal Rate of Return 20.9%

6


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Annex 4: NET INCOME STATEMENT ( in Birr)

PRODUCTION

1 2 3 4 5

Capacity Utilization (%) 75% 85% 100% 100% 100%

1. Total Income 21,000,000 23,800,000 28,000,000 28,000,000 28,000,000

Sales Revenue 21,000,000 23,800,000 28,000,000 28,000,000 28,000,000

Other Income 0 0 0 0 0

2. Less Variable Cost 14,537,003 16,475,270 19,382,671 19,382,671 19,382,671

VARIABLE MARGIN 6,462,997 7,324,730 8,617,329 8,617,329 8,617,329

(In % of Total Income) 30.78 30.78 30.78 30.78 30.78

3. Less Fixed Costs 2,179,988 2,218,234 2,275,604 2,275,604 2,275,604

OPERATIONAL MARGIN 4,283,009 5,106,495 6,341,725 6,341,725 6,341,725


4. Less Cost of Finance 4,133,252 1,930,775 1,608,979 1,287,183 965,387

5. GROSS PROFIT 149,757 3,175,721 4,732,746 5,054,542 5,376,338

6. Income (Corporate) Tax 0 0 1,419,824 1,516,363 1,612,901

7. NET PROFIT 149,757 3,175,721 3,312,922 3,538,179 3,763,437

RATIOS (%)

Gross Profit/Sales 0.71% 13.34% 16.90% 18.05% 19.20%

Net Profit After Tax/Sales 0.71% 13.34% 11.83% 12.64% 13.44%

Return on Investment 17.39% 20.02% 18.35% 17.99% 17.63%

Return on Equity 1.40% 29.61% 30.89% 32.99% 35.09%

7


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

PRODUCTION

6 7 8 9 10Capacity Utilization (%) 100% 100% 100% 100% 100%

1. Total Income 28,000,000 28,000,000 28,000,000 28,000,000 28,000,000

Sales Revenue 28,000,000 28,000,000 28,000,000 28,000,000 28,000,000

Other Income 0 0 0 0 0

2. Less Variable Cost 19,382,671 19,382,671 19,382,671 19,382,671 19,382,671

VARIABLE MARGIN 8,617,329 8,617,329 8,617,329 8,617,329 8,617,329


3. Less Fixed Costs 2,053,634 2,053,634 2,053,634 2,053,634 2,053,634

OPERATIONAL MARGIN 6,563,695 6,563,695 6,563,695 6,563,695 6,563,695


4. Less Cost of Finance 643,592 321,796 0 0 0

5. GROSS PROFIT 5,920,104 6,241,899 6,563,695 6,563,695 6,563,695

6. Income (Corporate) Tax 1,776,031 1,872,570 1,969,109 1,969,109 1,969,109

7. NET PROFIT 4,144,073 4,369,330 4,594,587 4,594,587 4,594,587

RATIOS (%)

Gross Profit/Sales 21.14% 22.29% 23.44% 23.44% 23.44%

Net Profit After Tax/Sales 14.80% 15.60% 16.41% 16.41% 16.41%

Return on Investment 17.85% 17.49% 17.13% 17.13% 17.13%

Return on Equity 38.63% 40.73% 42.83% 42.83% 42.83%

Annex 5: Projected Balance Sheet (in Birr)

8


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Year 1 Year 2 1 2 3 4

TOTAL ASSETS 9,028,425 26,816,314 29,256,980 30,056,524 31,145,997 32,002,545

1. Total Current Assets 0 8,759,464 12,915,600 15,430,614 18,235,557 20,807,575

Inventory on Materials and Supplies 0 0 5,122,939 5,805,997 6,830,585 6,830,585

Work in Progress 0 0 445,474 504,871 593,965 593,965

Finished Products in Stock 0 0 890,948 1,009,741 1,187,931 1,187,931

Accounts Receivable 0 0 2,290,909 2,596,364 3,054,545 3,054,545

Cash in Hand 0 0 110,238 124,936 146,983 146,983

Cash Surplus, Finance Available 0 8,759,464 4,055,093 5,388,706 6,421,547 8,993,565

Securities 0 0 0 0 0 0

2. Total Fixed Assets, Net of Depreciation 9,028,425 18,056,850 16,341,380 14,625,910 12,910,440 11,194,970

Fixed Investment 0 8,598,500 17,197,000 17,197,000 17,197,000 17,197,000

Construction in Progress 8,598,500 8,598,500 0 0 0 0

Pre-Production Expenditure 429,925 859,850 859,850 859,850 859,850 859,850

Less Accumulated Depreciation 0 0 1,715,470 3,430,940 5,146,410 6,861,8803. Accumulated Losses Brought Forward 0 0 0 0 0 0

4. Loss in Current Year 0 0 0 0 0 0

TOTAL LIABILITIES 9,028,425 26,816,314 29,256,980 30,056,524 31,145,997 32,002,545

5. Total Current Liabilities 0 0 2,290,909 2,596,364 3,054,545 3,054,545

Accounts Payable 0 0 2,290,909 2,596,364 3,054,545 3,054,545

Bank Overdraft 0 0 0 0 0 0

6. Total Long-term Debt 5,417,055 16,089,789 16,089,789 13,408,157 10,726,526 8,044,894

Loan A 5,417,055 16,089,789 16,089,789 13,408,157 10,726,526 8,044,894

Loan B 0 0 0 0 0 0

7. Total Equity Capital 3,611,370 10,726,526 10,726,526 10,726,526 10,726,526 10,726,526

Ordinary Capital 3,611,370 10,726,526 10,726,526 10,726,526 10,726,526 10,726,526

Preference Capital 0 0 0 0 0 0Subsidies 0 0 0 0 0 0

8. Reserves, Retained Profits Brought Forward 0 0 0 149,757 3,325,477 6,638,400

9.Net Profit After Tax 0 0 149,757 3,175,721 3,312,922 3,538,179

Dividends Payable 0 0 0 0 0 0

Retained Profits 0 0 149,757 3,175,721 3,312,922 3,538,179

9


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

PRODUCTION

5 6 7 8 9 10TOTAL ASSETS 33,084,350 34,546,791 36,234,489 40,829,076 45,423,663 50,018,249

1. Total Current Assets 23,604,850 26,560,791 29,741,989 35,830,076 41,918,163 48,006,249

Inventory on Materials and Supplies 6,830,585 6,830,585 6,830,585 6,830,585 6,830,585 6,830,585

Work in Progress 593,965 593,965 593,965 593,965 593,965 593,965

Finished Products in Stock 1,187,931 1,187,931 1,187,931 1,187,931 1,187,931 1,187,931

Accounts Receivable 3,054,545 3,054,545 3,054,545 3,054,545 3,054,545 3,054,545

Cash in Hand 146,983 146,983 146,983 146,983 146,983 146,983

Cash Surplus, Finance Available 11,790,840 14,746,781 17,927,979 24,016,066 30,104,153 36,192,239

Securities 0 0 0 0 0 0

2. Total Fixed Assets, Net of Depreciation 9,479,500 7,986,000 6,492,500 4,999,000 3,505,500 2,012,000

Fixed Investment 17,197,000 17,197,000 17,197,000 17,197,000 17,197,000 17,197,000

Construction in Progress 0 0 0 0 0 0Pre-Production Expenditure 859,850 859,850 859,850 859,850 859,850 859,850

Less Accumulated Depreciation 8,577,350 10,070,850 11,564,350 13,057,850 14,551,350 16,044,850

3. Accumulated Losses Brought Forward 0 0 0 0 0 0

4. Loss in Current Year 0 0 0 0 0 0

TOTAL LIABILITIES 33,084,350 34,546,791 36,234,489 40,829,076 45,423,663 50,018,249

5. Total Current Liabilities 3,054,545 3,054,545 3,054,545 3,054,545 3,054,545 3,054,545

Accounts Payable 3,054,545 3,054,545 3,054,545 3,054,545 3,054,545 3,054,545

Bank Overdraft 0 0 0 0 0 0

6. Total Long-term Debt 5,363,263 2,681,631 0 0 0 0

Loan A 5,363,263 2,681,631 0 0 0 0

Loan B 0 0 0 0 0 07. Total Equity Capital 10,726,526 10,726,526 10,726,526 10,726,526 10,726,526 10,726,526

Ordinary Capital 10,726,526 10,726,526 10,726,526 10,726,526 10,726,526 10,726,526

Preference Capital 0 0 0 0 0 0

Subsidies 0 0 0 0 0 0

8. Reserves, Retained Profits Brought Forward 10,176,579 13,940,016 18,084,088 22,453,418 27,048,005 31,642,591

9. Net Profit After Tax 3,763,437 4,144,073 4,369,330 4,594,587 4,594,587 4,594,587

Dividends Payable 0 0 0 0 0 0

Retained Profits 3,763,437 4,144,073 4,369,330 4,594,587 4,594,587 4,594,587

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aluminum household utensil making plant

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