PROJECT PROPOSAL ON THE

EXPANSION OF G+4 MIXED –

USE BUILDING

PROMOTER-Mr. TESFAYE LAKE

Telephone +251- 918 - 353 - 860
ADDRESS: BAHIR DAR

Submitted To: Bahir Dar City Administration

Bahir Dar, 2014 E.C

 TABLE OF CONTENTS

TITLE PAGE
Executive Summary ............................................................................................... 1
1. Product Description and Application .......................................................... 2
2. 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 .................................................................................................. 3
3.1.3 Pricing and Distribution ....................................................................................... 4
3.2 Plant Capacity ................................................................................................................ 4
3. Location and Site.............................................................................................. 4
4. Technology and Engineering ........................................................................ 5
4.1 Total area needed .......................................................................................................... 5
5. Human Resource and Training Requirement ............................................ 5
5.1 Human Resource ........................................................................................................... 5
6. Financial Analysis ........................................................................................... 6
6.1 Underlying Assumption............................................................................................... 6
6.2 INVESTMENT ............................................................................................................... 8
6.3 Financial Evaluation ..................................................................................................... 8
7. Economic and Social Benefit and Justification ........................................ 10
ANNEXES .............................................................................................................. 12

1
 Executive Summary

The project envisages the establishment of G+4 modern mixed use building
plant with a total number of 52 different sized rooms in Bahir Dar city, at
the Fasilo subcity.

The present demand for modern mixed use building services in Amhara
Region is up grading compared to its infrastructure and economic
development.

The total initial investment requirement is estimated at birr 30 million, of

which 82.3% is for building construction.

The project will create employment opportunities for 80 persons.

The project is financially viable with an internal rate of return (IRR) of

20.7% and a net present value (NPV) of Birr 9 million discounted at 18%.

1
 1. Product Description and Application

Mixed use building is a type of building which is aimed to solve the

problem of working room for shops, super markets, banks, hotel, cafe and
restaurants, offices, meeting halls and other service delivering business.
Based on these there are only few mixed buildings with quality standard of
rooms and their service while there is ample demand for the sector due to
development of urbanism, trade, high demand for goods and services by
the community and different business entrepreneurs.

2. Market Study, Plant Capacity and Production Program

3.1 Market Study

3.1.1 Present Demand and Supply

Except in one or two major urban centers of the region, there is only little
modern mixed-use building with acceptable standards in the whole
Region. Most zonal capitals and almost all woreda capitals do not have
mixed use building which meet minimum standards. What they call mixed
use building in these “urban centers” are filthy facilities with small and
dirty rooms. In short, almost all the so-called mixed-use buildings found in
most urban centers in the Region are well below accepted standards.
Clearly there is a need to establish modern mixed-use buildings at least in
zonal and woreda capital of the region. Government employees,
merchants, travelers in the Region residents and tourists will be the main
customers of these catering businesses.

2
 3.1.2 Projected Demand

The prime factor which determines the demand for mixed use building in
tows is the magnitude of trade and service sectors through various means
of business development, urbanization and per capital income of
population of a country in question.

Today all ten zonal towns of Amhara Region are connected by land
transport of which except the two zonal towns i.e., Debretabor of South
Gondar (the existing all-weather road is up grading to asphalt level) and
Sekota of Wag Himra zones, the rest are connected by asphalt roads. In
addition three zonal towns are connected by air transport i.e. Gondar of
North Gondar, Bahir Dar of West Gojjam and Dessie of South Wello zones.

On the other hand, the GDP and urban development are continuously
increasing at regional and country level. These developments in turn
demand modern and effective social services such mixed use buildings at
urban centers.

In this regard, the movement of business men, local and foreign tourists
and civil servants is increasing at an increasing rate every year in all the
zonal as well as woreda towns of the Region, which need mixed use
buildings.
Therefore, assuming that demand for and supply of mixed-use buildings
be made for the specific zonal town during the feasibility sturdy, this
project profile presents a very conservative cost estimate for a building that
could be duplicated in any zonal or worked towns in Amhara region.

3
 3.1.3 Pricing and Distribution

Pricing of a mixed-use building services could be through rent. In this

regard the monthly average rent price of medium room is given in table 1
bellow. All bed rooms are assumed to be self contend.

Table 1
Monthly Rent Price of Different Sized Rooms

Rooms Price of rent in Birr

Small rooms 2,000-6,000
Medium rooms 3,000-10,000

big rooms 12,000- 25,000

3.2 Plant Capacity

The G+4 modern mixed building is expected to have 30 small rooms, 12

medium rooms and 10 big rooms for rent for different purposes including
super markets, financial institutions like banks, shops, offices, hotel and
restaurants and others.

3. Location and Site

The proposed project could be established in Bahir Dar city, Fasilo sub
city where the biggest central business district and active business and
trading underway and future commercial activity will be highly existing.

4
 4. Technology and Engineering

The main processes of establishing modern mixed building in urban

centers of the Amhara Region include studying the market, securing land,
constructing buildings, equipping and furnishing the building with good
design and starting the operations of the businesses.

4.1 Total area Required

The proposed building will require a total area of 450 m2 of land. from
which of land 335.11 m2 is owned by the developer (Mr. Tesfaye Lake)
and currently in the construction underway. Whereas, the needed
expansion area of 115 m2 of land to the adjacent side of the projected
construction, which is currently controlled by some individuals rented it
from the city administration, (kebelie houses) expected to Owen from the
city municipality as an expansion, which is very essential for the
proposed plant aimed to be for different amenities of the building. Like:
parking, children stay, store, and etc.

Human Resource and Training Requirement

4.2 Human Resource

The project will require about 80 employees as indicated in table 5 bellow

with annual salary of Birr 152,240.

5
 Table 5
Human Resources Requirement

Position No Salary
Manager 1 12,000
Cashier 1 8,400
Accountant and 3 4,800
purchaser
Construction workers 28 16,800
Assistant 5 6,000
Laborers 39 19,200
Supervisor 1 3,600
Guard 2 7,200
Total 80 78,000
Benefits 20% - 15,600
Total - 152,240

5. Financial Analysis

5.1Underlying Assumption

The financial analysis of the envisaged G+4 mixed use building plant is
based on the data provided in the preceding chapters and the following
assumptions.

6
 A. Construction and Finance

Construction period One and half year

Source of finance 75% equity and 25% loan
Tax holidays 2 years
Bank interest rate 12%
Discount for cash flow 18%
Based on lease rate of
Value of land 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 10 days
Finished Products 15 days
Accounts Receivable 30 days
Cash in Hand 30 days
Accounts Payable 30 days

7
 5.2 INVESTMENT

The total investment cost of building the project is estimated at Birr 30

million as shown in table 6 below. The Owner shall contribute 80% of the
finance in the form of equity while the remaining 20% is to be financed by
bank loan.

Table 6: Total building cost

Items Cost In Birr

Land, Building and civil
works 20000000
Utilities 5000000
Wages and Salaries 1,000,000
Remaining costs
4000000
Total 30,000,000

*Working capital expenditure includes - all expenses for pre-investment studies,

consultancy fee during construction and expenses for project establishment, project
administration expenses, commission expenses, preproduction marketing and
interest expenses during construction.

5.3 Financial Evaluation

I. Profitability
The financial projections made reveal that the project is economically
viable and socially desirable. According to the income statement of the
plant the project will generate profit beginning from first year operation.
Important ratios such as the percentage of net profit to equity (return on

8
equity) and net profit and interest on total investment (return on total
investment) are 13% and 22% in the first year and are gradually increasing.
II. Breakeven Analysis
The break even point of the project is estimated by using income statement
projection. The plant breaks evens at 25.7% of capacity utilization.

III. Payback Period

The Initial investment of the project will be recovered before the end of the
third-year operation.

IV. Simple Rate of Return

It is a ratio of net profit and interest to total capital invested for a single
year at full capacity utilization. Thus, the simple rate of return of the
project is about 19.5%.
V. Internal Rate of Return and Net Present Value
Base on the cash fallow statement, the project is anticipated to have a net
present value of Birr 9 million when discounted at 18% discounting factor
where as its IRR is 20.7%
VI. Sensitivity Analysis
An increase in costs of raw materials by 10% will not affect the profitability
of the pant.

6. 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

9
plan as well as increase the quality of one of the social services 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 on average a profit of

birr 3 million per year and birr 210 million within the project life. Such
result induces the project promoters to reinvest the profit which, therefore,
increases the investment magnitude in the region.

B. Tax Revenue

In the project life under consideration, the region will collect about birr 11
million from corporate tax payment alone (i.e., excluding income tax, sales
tax and VAT). Such result creates additional fund for the regional
government that will be used in expanding social and other basic services
in the region

C. Employment and Income Generation

The proposed project is expected to create employment opportunity to 80

citizens of the country. Consequently, the project creates income of birr 94
thousand per year. This would be one of the commendable
accomplishments of the project.

D. Pro Environment Project

The proposed production process is environment friendly.

10
 ANNEXES

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

CONSTRUCTION SERVICE
Year 1 Year 2 1 2 3 4

Capacity Utilization (%) 0.00 0.00 85% 95% 100% 100%

1. Total Inventory 0.00 0.00 107239.97 119856.44 126164.67 126164.67

Raw Materials in Stock- Total 0.00 0.00 32459.19 36277.92 38187.29 38187.29

Raw Material-Local 0.00 0.00 32459.19 36277.92 38187.29 38187.29

Raw Material-Foreign 0.00 0.00 0.00 0.00 0.00 0.00

Factory Supplies in Stock 0.00 0.00 514.23 574.73 604.97 604.97

Spare Parts in Stock and Maintenance 0.00 0.00 3240.25 3621.45 3812.05 3812.05

Work in Progress 0.00 0.00 12855.70 14368.14 15124.36 15124.36

Finished Products 0.00 0.00 25711.41 28736.28 30248.71 30248.71

2. Accounts Receivable 0.00 0.00 81704.79 91317.12 96123.29 96123.29

3. Cash in Hand 0.00 0.00 8635.07 9650.96 10158.90 10158.90

CURRENT ASSETS 0.00 0.00 165120.64 184546.60 194259.58 194259.58

4. Current Liabilities 0.00 0.00 81704.79 91317.12 96123.29 96123.29

Accounts Payable 0.00 0.00 81704.79 91317.12 96123.29 96123.29

TOTAL NET WORKING CAPITAL REQUIRMENTS 0.00 0.00 83415.85 93229.47 98136.29 98136.29

INCREASE IN NET WORKING CAPITAL 0.00 0.00 83415.85 9813.63 4906.81 0.00

11
 Annex 1: Total Net Working Capital Requirements (in Birr) (continued)
SERVICE
5 6 7 8 9 10

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

1. Total Inventory 126164.67 126164.67 126164.67 126164.67 126164.67 126164.67

Raw Materials in Stock-Total 38187.29 38187.29 38187.29 38187.29 38187.29 38187.29

Raw Material-Local 38187.29 38187.29 38187.29 38187.29 38187.29 38187.29

Raw Material-Foreign 0.00 0.00 0.00 0.00 0.00 0.00

Factory Supplies in Stock 604.97 604.97 604.97 604.97 604.97 604.97

Spare Parts in Stock and Maintenance 3812.05 3812.05 3812.05 3812.05 3812.05 3812.05

Work in Progress 15124.36 15124.36 15124.36 15124.36 15124.36 15124.36

Finished Products 30248.71 30248.71 30248.71 30248.71 30248.71 30248.71

2. Accounts Receivable 96123.29 96123.29 96123.29 96123.29 96123.29 96123.29

3. Cash in Hand 10158.90 10158.90 10158.90 10158.90 10158.90 10158.90

CURRENT ASSETS 194259.58 194259.58 194259.58 194259.58 194259.58 194259.58

4. Current Liabilities 96123.29 96123.29 96123.29 96123.29 96123.29 96123.29

Accounts Payable 96123.29 96123.29 96123.29 96123.29 96123.29 96123.29

TOTAL NET WORKING CAPITAL REQUIRMENTS 98136.29 98136.29 98136.29 98136.29 98136.29 98136.29

INCREASE IN NET WORKING CAPITAL 0.00 0.00 0.00 0.00 0.00 0.00

12
 Annex 2: Cash Flow Statement (in Birr)
CONSTRUCTION SERVICE
Year 1 Year 2 1 2 3 4
TOTAL CASH INFLOW 811650.00 909786.29 1075779.79 1120637.33 1174306.16 1169500.00
1. Inflow Funds 811650.00 909786.29 81704.79 9612.33 4806.16 0.00
Total Equity 324660.00 363914.52 0.00 0.00 0.00 0.00
Total Long Term Loan 486990.00 545871.77 0.00 0.00 0.00 0.00
Total Short Term Finances 0.00 0.00 81704.79 9612.33 4806.16 0.00
2. Inflow Operation 0.00 0.00 994075.00 1111025.00 1169500.00 1169500.00
Sales Revenue 0.00 0.00 994075.00 1111025.00 1169500.00 1169500.00
Interest on Securities 0.00 0.00 0.00 0.00 0.00 0.00
3. Other Income 0.00 0.00 0.00 0.00 0.00 0.00
TOTAL CASH OUTFLOW 811650.00 811650.00 967935.91 899616.89 1004286.70 980113.65
4. Increase In Fixed Assets 811650.00 811650.00 0.00 0.00 0.00 0.00
Fixed Investments 773000.00 773000.00 0.00 0.00 0.00 0.00
Pre-production Expenditures 38650.00 38650.00 0.00 0.00 0.00 0.00
5. Increase in Current Assets 0.00 0.00 165120.64 19425.96 9712.98 0.00
6. Operating Costs 0.00 0.00 524546.64 584103.89 613882.52 613882.52
7. Corporate Tax Paid 0.00 0.00 0.00 0.00 105261.39 111458.56
8. Interest Paid 0.00 0.00 278268.62 123943.41 103286.18 82628.94
9. Loan Repayments 0.00 0.00 0.00 172143.63 172143.63 172143.63
10. Dividends Paid 0.00 0.00 0.00 0.00 0.00 0.00
Surplus(Deficit) 0.00 98136.29 107843.89 221020.44 170019.47 189386.35
Cumulative Cash Balance 0.00 98136.29 205980.18 427000.61 597020.08 786406.43

13
 Annex 2: Cash Flow Statement (in Birr): Continued
SERVICE
5 6 7 8 9 10
TOTAL CASH INFLOW 1169500.00 1169500.00 1169500.00 1169500.00 1169500.00 1169500.00
1. Inflow Funds 0.00 0.00 0.00 0.00 0.00 0.00
Total Equity 0.00 0.00 0.00 0.00 0.00 0.00
Total Long Term Loan 0.00 0.00 0.00 0.00 0.00 0.00
Total Short Term Finances 0.00 0.00 0.00 0.00 0.00 0.00
2. Inflow Operation 1169500.00 1169500.00 1169500.00 1169500.00 1169500.00 1169500.00
Sales Revenue 1169500.00 1169500.00 1169500.00 1169500.00 1169500.00 1169500.00
Interest on Securities 0.00 0.00 0.00 0.00 0.00 0.00
3. Other Income 0.00 0.00 0.00 0.00 0.00 0.00
TOTAL CASH OUTFLOW 965653.59 955831.52 941371.46 754767.76 754767.76 754767.76
4. Increase In Fixed Assets 0.00 0.00 0.00 0.00 0.00 0.00
Fixed Investments 0.00 0.00 0.00 0.00 0.00 0.00
Pre-production Expenditures 0.00 0.00 0.00 0.00 0.00 0.00
5. Increase in Current Assets 0.00 0.00 0.00 0.00 0.00 0.00
6. Operating Costs 613882.52 613882.52 613882.52 613882.52 613882.52 613882.52
7. Corporate Tax Paid 117655.73 128490.90 134688.07 140885.24 140885.24 140885.24
8. Interest Paid 61971.71 41314.47 20657.24 0.00 0.00 0.00
9. Loan Repayments 172143.63 172143.63 172143.63 0.00 0.00 0.00
10. Dividends Paid 0.00 0.00 0.00 0.00 0.00 0.00
Surplus(Deficit) 203846.41 213668.48 228128.54 414732.24 414732.24 414732.24
Cumulative Cash Balance 990252.84 1203921.32 1432049.86 1846782.10 2261514.33 2676246.57

14
 Annex 3: DISCOUNTED CASH FLOW-TOTAL CAPITAL INVESTED
CONSTRUCTION SERVICE
Year 1 Year 2 1 2 3 4
TOTAL CASH INFLOW 0.00 0.00 994075.00 1111025.00 1169500.00 1169500.00

1. Inflow Operation 0.00 0.00 994075.00 1111025.00 1169500.00 1169500.00

Sales Revenue 0.00 0.00 994075.00 1111025.00 1169500.00 1169500.00

Interest on Securities 0.00 0.00 0.00 0.00 0.00 0.00

2. Other Income 0.00 0.00 0.00 0.00 0.00 0.00

TOTAL CASH OUTFLOW 811650.00 811650.00 607962.49 593917.52 724050.73 725341.08

3. Increase in Fixed Assets 811650.00 811650.00 0.00 0.00 0.00 0.00

Fixed Investments 773000.00 773000.00 0.00 0.00 0.00 0.00

Pre-production Expenditures 38650.00 38650.00 0.00 0.00 0.00 0.00

4. Increase in Net Working Capital 0.00 0.00 83415.85 9813.63 4906.81 0.00

5. Operating Costs 0.00 0.00 524546.64 584103.89 613882.52 613882.52

6. Corporate Tax Paid 0.00 0.00 0.00 0.00 105261.39 111458.56

NET CASH FLOW -811650.00 -811650.00 386112.51 517107.48 445449.27 444158.92

CUMMULATIVE NET CASH FLOW -811650.00 -1623300.00 -1237187.49 -720080.01 -274630.74 169528.18

Net Present Value (at 18%) -811650.00 -687838.98 277299.99 314727.58 229757.78 194145.96

Cumulative Net present Value -811650.00 -1499488.98 -1222188.99 -907461.41 -677703.63 -483557.68

15
 Annex 3: DISCOUNTED CASH FLOW-TOTAL CAPITAL INVESTED (Continued)
SERVICE
5 6 7 8 9 10
TOTAL CASH INFLOW 1169500.00 1169500.00 1169500.00 1169500.00 1169500.00 1169500.00

1. Inflow Operation 1169500.00 1169500.00 1169500.00 1169500.00 1169500.00 1169500.00

Sales Revenue 1169500.00 1169500.00 1169500.00 1169500.00 1169500.00 1169500.00

Interest on Securities 0.00 0.00 0.00 0.00 0.00 0.00

2. Other Income 0.00 0.00 0.00 0.00 0.00 0.00

TOTAL CASH OUTFLOW 731538.25 742373.42 748570.59 754767.76 754767.76 754767.76

3. Increase in Fixed Assets 0.00 0.00 0.00 0.00 0.00 0.00

Fixed Investments 0.00 0.00 0.00 0.00 0.00 0.00

Pre-production Expenditures 0.00 0.00 0.00 0.00 0.00 0.00

4. Increase in Net Working Capital 0.00 0.00 0.00 0.00 0.00 0.00

5. Operating Costs 613882.52 613882.52 613882.52 613882.52 613882.52 613882.52

6. Corporate Tax Paid 117655.73 128490.90 134688.07 140885.24 140885.24 140885.24

NET CASH FLOW 437961.75 427126.58 420929.41 414732.24 414732.24 414732.24

CUMMULATIVE NET CASH FLOW 607489.93 1034616.51 1455545.91 1870278.15 2285010.39 2699742.62

Net Present Value (at 18%) 162234.84 134085.72 111983.29 93503.90 79240.59 67153.05

Cumulative Net present Value -321322.83 -187237.11 -75253.82 18250.08 97490.67 164643.72

Net Present Value (at 18%) 40,464,372

Internal Rate of Return 20.7%

16
 Annex 4: NET INCOME STATEMENT ( in Birr)
SERVICE
1 2 3 4 5

Capacity Utilization (%) 85% 95% 100% 100% 100%

1. Total Income 994075.00 1111025.00 1169500.00 1169500.00 1169500.00

Sales Revenue 994075.00 1111025.00 1169500.00 1169500.00 1169500.00

Other Income 0.00 0.00 0.00 0.00 0.00

2. Less Variable Cost 474412.64 530225.89 558132.52 558132.52 558132.52

VARIABLE MARGIN 519662.36 580799.11 611367.48 611367.48 611367.48

(In % of Total Income) 52.28 52.28 52.28 52.28 52.28

3. Less Fixed Costs 151594.00 155338.00 157210.00 157210.00 157210.00

OPERATIONAL MARGIN 368068.36 425461.11 454157.48 454157.48 454157.48

(In % of Total Income) 37 38 39 39 39

4. Less Cost of Finance 278268.62 123943.41 103286.18 82628.94 61971.71

5. GROSS PROFIT 89799.74 301517.69 350871.30 371528.54 392185.77

6. Income (Corporate) Tax 0.00 0.00 105261.39 111458.56 117655.73

7. NET PROFIT 89799.74 301517.69 245609.91 260069.98 274530.04

RATIOS (%)

Gross Profit/Sales 9% 27% 30% 32% 34%

Net Profit After Tax/Sales 9% 27% 21% 22% 23%

Return on Investment 22% 25% 20% 20% 20%

Return on Equity 13% 44% 36% 38% 40%

17
 Annex 4: NET INCOME STATEMENT (in Birr):Continued
SERVICE
6 7 8 9 10
Capacity Utilization (%) 100% 100% 100% 100% 100%

1. Total Income 1169500.00 1169500.00 1169500.00 1169500.00 1169500.00

Sales Revenue 1169500.00 1169500.00 1169500.00 1169500.00 1169500.00

Other Income 0.00 0.00 0.00 0.00 0.00

2. Less Variable Cost 558132.52 558132.52 558132.52 558132.52 558132.52

VARIABLE MARGIN 611367.48 611367.48 611367.48 611367.48 611367.48

(In % of Total Income) 52 52 52 52 52

3. Less Fixed Costs 141750.00 141750.00 141750.00 141750.00 141750.00

OPERATIONAL MARGIN 469617.48 469617.48 469617.48 469617.48 469617.48

(In % of Total Income) 40 40 40 40 40

4. Less Cost of Finance 41314.47 20657.24 0.00 0.00 0.00

5. GROSS PROFIT 428303.01 448960.24 469617.48 469617.48 469617.48

6. Income (Corporate) Tax 128490.90 134688.07 140885.24 140885.24 140885.24

7. NET PROFIT 299812.11 314272.17 328732.24 328732.24 328732.24

RATIOS (%)

Gross Profit/Sales 37% 38% 40% 40% 40%

Net Profit After Tax/Sales 26% 27% 28% 28% 28%

Return on Investment 20% 19% 19% 19% 19%

Return on Equity 44% 46% 48% 48% 48%

18
 Annex 5: Projected Balance Sheet (in Birr)
CONSTRUCTION SERVICE
Year 1 Year 2 1 2 3 4
TOTAL ASSETS 811650.00 1721436.29 1892940.82 2031927.21 2110199.66 2198126.01
1. Total Current Assets 0.00 98136.29 371100.82 611547.21 791279.66 980666.01
Inventory on Materials and Supplies 0.00 0.00 36213.67 40474.10 42604.32 42604.32
Work in Progress 0.00 0.00 12855.70 14368.14 15124.36 15124.36
Finished Products in Stock 0.00 0.00 25711.41 28736.28 30248.71 30248.71
Accounts Receivable 0.00 0.00 81704.79 91317.12 96123.29 96123.29
Cash in Hand 0.00 0.00 8635.07 9650.96 10158.90 10158.90
Cash Surplus, Finance Available 0.00 98136.29 205980.18 427000.61 597020.08 786406.43
Securities 0.00 0.00 0.00 0.00 0.00 0.00
2. Total Fixed Assets, Net of Depreciation 811650.00 1623300.00 1521840.00 1420380.00 1318920.00 1217460.00
Fixed Investment 0.00 773000.00 1546000.00 1546000.00 1546000.00 1546000.00
Construction in Progress 773000.00 773000.00 0.00 0.00 0.00 0.00
Pre-Production Expenditure 38650.00 77300.00 77300.00 77300.00 77300.00 77300.00
Less Accumulated Depreciation 0.00 0.00 101460.00 202920.00 304380.00 405840.00
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 811650.00 1721436.29 1892940.82 2031927.21 2110199.66 2198126.01
5. Total Current Liabilities 0.00 0.00 81704.79 91317.12 96123.29 96123.29
Accounts Payable 0.00 0.00 81704.79 91317.12 96123.29 96123.29
Bank Overdraft 0.00 0.00 0.00 0.00 0.00 0.00
6. Total Long-term Debt 486990.00 1032861.77 1032861.77 860718.14 688574.52 516430.89
Loan A 486990.00 1032861.77 1032861.77 860718.14 688574.52 516430.89
Loan B 0.00 0.00 0.00 0.00 0.00 0.00
7. Total Equity Capital 324660.00 688574.52 688574.52 688574.52 688574.52 688574.52
Ordinary Capital 324660.00 688574.52 688574.52 688574.52 688574.52 688574.52
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 89799.74 391317.43 636927.34
9. Net Profit After Tax 0.00 0.00 89799.74 301517.69 245609.91 260069.98

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 Dividends Payable 0.00 0.00 0.00 0.00 0.00 0.00
Retained Profits 0.00 0.00 89799.74 301517.69 245609.91 260069.98

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

SERVICE
5 6 7 8 9 10
TOTAL ASSETS 2300512.42 2428180.90 2570309.44 2899041.68 3227773.91 3556506.15
1. Total Current Assets 1184512.42 1398180.90 1626309.44 2041041.68 2455773.91 2870506.15
Inventory on Materials and Supplies 42604.32 42604.32 42604.32 42604.32 42604.32 42604.32
Work in Progress 15124.36 15124.36 15124.36 15124.36 15124.36 15124.36
Finished Products in Stock 30248.71 30248.71 30248.71 30248.71 30248.71 30248.71
Accounts Receivable 96123.29 96123.29 96123.29 96123.29 96123.29 96123.29
Cash in Hand 10158.90 10158.90 10158.90 10158.90 10158.90 10158.90
Cash Surplus, Finance Available 990252.84 1203921.32 1432049.86 1846782.10 2261514.33 2676246.57
Securities 0.00 0.00 0.00 0.00 0.00 0.00
2. Total Fixed Assets, Net of Depreciation 1116000.00 1030000.00 944000.00 858000.00 772000.00 686000.00
Fixed Investment 1546000.00 1546000.00 1546000.00 1546000.00 1546000.00 1546000.00
Construction in Progress 0.00 0.00 0.00 0.00 0.00 0.00
Pre-Production Expenditure 77300.00 77300.00 77300.00 77300.00 77300.00 77300.00
Less Accumulated Depreciation 507300.00 593300.00 679300.00 765300.00 851300.00 937300.00
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 2300512.42 2428180.90 2570309.44 2899041.68 3227773.91 3556506.15
5. Total Current Liabilities 96123.29 96123.29 96123.29 96123.29 96123.29 96123.29
Accounts Payable 96123.29 96123.29 96123.29 96123.29 96123.29 96123.29
Bank Overdraft 0.00 0.00 0.00 0.00 0.00 0.00
6. Total Long-term Debt 344287.26 172143.63 0.00 0.00 0.00 0.00
Loan A 344287.26 172143.63 0.00 0.00 0.00 0.00
Loan B 0.00 0.00 0.00 0.00 0.00 0.00
7. Total Equity Capital 688574.52 688574.52 688574.52 688574.52 688574.52 688574.52
Ordinary Capital 688574.52 688574.52 688574.52 688574.52 688574.52 688574.52
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 896997.32 1171527.36 1471339.46 1785611.64 2114343.87 2443076.11
9. Net Profit After Tax 274530.04 299812.11 314272.17 328732.24 328732.24 328732.24
Dividends Payable 0.00 0.00 0.00 0.00 0.00 0.00
Retained Profits 274530.04 299812.11 314272.17 328732.24 328732.24 328732.24

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