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FINAL PAWI BAKERY MACHINARY LEASE PROPOSAL.docx

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PAWI BAKERY BUSINESS PLAN FEBRUARY , 2023 Benishangul Gumuz MENGISTU TADELE BAKERY Page 1
Table of Content I.Executive Summery ...................................................... II. Background
Information ................................................ III.MarketAnalysis........................................................... IV.
Production Plan &Technical Analysis............................. V. Organization and
Management ................................. ..... VI.FinancialAnalysis.......................................................
VII.Annexes....................................................................

I.EXECUTIVE SUMMARY Awareness of high quality baked goods is on the rise. Good bread is a rare
combination of nutrition, convenience, and luxury. Today's consumer has less time to create
wholesome, handmade bread, but increasingly appreciates the nutritional and sensory benefits it
provides. Good bread provides fiber and carbohydrates in a convenient, low fat form that is portable
and delicious. Good bread never goes out of style. In this regard, the envisaged project is a newly
established Ethiopian owned business founded by Mr. Mengistu Tadele , who has been engaged in hotel
services business for more than a decade. The new bakery project has intended to produce and sale
bread and pastry products of high quality ingredients using modern production techniques. In addition
the company's objective is to generate income for the company by participating actively in the business
environment with creating employment opportunities for surrounding community. Currently, the
project promoter has finalized researching the market and has concluded that the intended business is
an attractive investment. The planned production capacity of the project is assumed initially based on
two shifts with capacity utilization rate at 70%, 80%, 90%, and 100% during 1 st , 2 nd , 3 rd , and 4 th -10
th years respectively. Accordingly, it will have a total production capacity for each item per annum as
follows. Although there are many established competitors with in the vicinity where the underlying
project has planned to be located; it will possess an advantage that lies with the high quality of its
products due to specialization and artisan manufacturing. The main marketing focus will be of all
community inclusive and having an eye catching sign, the scent of fresh bread wafting out of the
storefront, and periodic printed advertisements. After establishing the operation, the company will
explore the possibility of making takeout and delivering wholesale bread and baked goods to area
restaurants and specialty retailers will also be considered. Hence, the market for the products under
consideration is projected to grow rapidly in the coming years. The products will be supplied to high
demanding domestic market and also will

improve the supply of breads to and improve the lives of local community through employment
creation. Regarding project financing, the total investment cost required for the project is estimated to
be Birr 6,805,818 , which intended to cover investment costs of working premises, machinery, vehicles,
working capital requirements, office furniture & equipment and raw material. Out of the total estimated
initial investment costs, approximately, Birr 4,646,818 will be expected from owners' equity contribution
and Birr 2,159,818 for Purchase of Baking Machine with accessories will be sought from external source
as bank lease financing loan for which It is projected that principal and interest on the loan will be paid
over five years with annual interest rate of 11 .5%. Furthermore, the financial analysis result, the
business will generate positive net profit through entire years of operations. 179,21 4 2,696,982
3,114,754 3,510,292 5,087,874 During 1 st , 2 nd , 3 rd , 4 th and 5 th years respectively. Detail is
annexed. On the other hand, projected cash flow of the business shows that the project would generate
positive net cash flows throughout the operation years. The net cash in-flow for considered life span
(i.e.1 st year to 5 th year is indicated below, whereas Details are shown in annex. 422,444.33 4,801,507
10,167,30 7 18,017,83 3 28,702,779 43,097,107 Furthermore, t he investment cost and income
statement projection are used to project the pay-back period. The project's initial investment will be
fully recovered within 3 years. Whereas, Based on the cash flow statement, the calculated IRR before
and After Tax as well as the net present value (NPV) discounted at 11.5% are shown below. IRR After Tax
32% IRR Before Tax 49% NPV @ 11.5% inter. rate 4,185,223 Finally, Introduction and uses of this new
producing technology has reliable positive impacts on the overall development of the country in many
aspects. In this regard, the company with its initial production capacity intended to move forward, so
that; ✔ It creates employment opportunity for about 28 permanent employees;

✔ It generates income to the promoters and enhances self-employment; ✔ The business contributes its
best role in the socio-economic development; It ✔ generates revenue to the government in the form of
income tax; II.BACKGROUND INFORMATION 2.1 Establishment ❖ Project
Name: .........................Mengistu Tadele Bakery ❖ Address: .................................Benishangul Gumuz
Region Dangur woreda,Manbuk town . Seb- City, Woreda-05, H.No. 083 ⮚ Type of
Business: ......................Food Processing and Manufacturing ⮚ Legal form of Business: ...............Sole
proprietorship ⮚ Status of Business: .....................New Project; ⮚ TIN Certificate No.: ............... ....
0005957543 ⮚ Trade Registration No: ..............AA/AR/05/1/0000708/2005; DD:22/5/2005 E.C ⮚
TradeLicense No.: .....................Under Process ⮚ Required Initial Investment: .........ETB 6,808,818 2.2
Project Ownership

The business is a newly established Ethiopian owned business founded by Mr. Mengistu Tadele having
the main focuses on bakery of breads and pastries, The business promoters is at the middle age of life,
with having a good character and well appreciated personality among the society. Besides, he has been
engaged in hotel services business for more than a decade. The new bakery project has intended to
produce and sale bread and pastry products of high quality ingredients using modern production
techniques. In addition the company's objective is to generate income for the company by participating
actively in the business environment with creating employment opportunities for surrounding
community. He is educated and has acquired pertinent working experiences of undertaking quality
hospitality services and capable to implement proper business management. 2.3 BUSINESSES
OBJECTIVES The major objectives of the business are: ⮚ To fully engage in the production of quality food
items for commercial purposes. ⮚ To embark on a sustainable plan to achieve a reliable source of
products for the local, market, To be leader in the supply of quality breads and pastries, using modern
production techniques and technology and efficient management and distribution channels. To
contribute in the food sector development Producing breads and pastries using modern production
techniques and technology through creation of employment. To generate sustainable income for the
company in order to expand the operation and other related development activities in the country. 2.4 .
VISION & STRATEGY Become one of best quality food producers with sustainable profitability. This will
be through performing as a multifaceted business committed in providing maximum customer
satisfaction . To achieve this vision, it has to be resolved upon a set of strategies and executing these
strategies by translating directly into the ability to serve the business vision and objectives. The
company's vision is to be realized through a team of professionals who have extensive work experience
in the industry.

2.5. COMPANY VALUES AND CULTURE The following are components of the business values and
cultures. The company communicates openly and honestly. Unethical and dishonest practices have no
place in the business The company recognizes and rewards performance The company believes that
staff development is integral part of its success The company strongly believes that teams, not
individuals are the essential unit of the organization for achieving high performance and accelerating
growth. The company believes in societal support and community development, hence, all its personnel
will obey to this core value. 2.6 KEY SUCCESSES ❖ Macro level Successes ✔ Access to credit provision at
lower interest rate as compared to the business's ROI ✔ Attractive investment policy and other
packages; ✔ Secured peace and stability throughout the country; ✔ Continuous increment in household
income and associated expenditure patterns; ❖ Sector Level key Successes ✔ Availability of the required
infrastructure; ✔ Availability of distribution outlets; ✔ Government incentive and encouragement . ❖
Firm level successes factors ✔ Well trained &motivated personnel;
✔ Long years of pertinent work experience of the owners/promoters; ✔ Well established business with
plenty of good-will as well as social acceptances that the promoters earned so far. ✔ Availability of raw
materials relatively with low-cost and nearest locations 2.7 FUNDING REQUIRMENT The envisaged
business requires total investment of ETB 6,805,818 . Out of this, the total equity contribution is
expected to ETB 990,675.94 including the initial owners' equity. The remaining investment cost about
ETB 4,646,000 , is sought to be found from external source as bank lease financing, which break-down is,
partly for machinery import, equipment and vehicle purchase. On the other hand, the remaining loan
amount will be used to fulfill working capital requirement in connection to planned production. 2.8
PRODUCTS DESCRIPTION Products of the envisaged bread bakery will stand out from the competition
due to their uniqueness and outstanding quality. Most of the breads are unique in style, including
Sourdough, and traditional Ethiopian whole wheat bread, and flavored pastries. These breads are made
by the sourdough method which uses no added yeast. This method imparts a rich flavor, which can be
tangy or mild, as well as a toothsome inner crumb and a crackly crust. By using this method, a skilled
baker can create truly delicious breads without added fats or sugars, making many of products 100% fat
free. Sourdough breads also have an extended shelf life, remaining fresh for days without the use of
preservatives. The project will also offer specialty breads, which will be made in the sourdough way with
the addition of such luxurious ingredients as pastry with fresh ground pepper and dried spices with

roasted green fruits. Spent Grain Bread, made with barley leftover from beer brewing, is another unique
product that Mengistu Tadele bakery will offer. Two varieties of product style will be offered fresh daily,
a high demand product that is available nowhere else in the area. The bakery project will also produce
White and Wheat Sandwich Breads with soft crust and a tender crumb for traditional Ethiopian Style
food. As the needs of the customer change, so will the lineup of its products. The bakery equipment is
chosen with versatility in mind. III. MARKET ANALYSIS 3.1 PAST SUPPLY AND TREND ANALYSIS 3.1.1
Bread Production and supply The bakery business in Benishangul Gumuz comprises a large number of
players that can be segmented on the basis of their production capacity and a type of services they
provide. The major partakers are those considering the industry's high fixed cost requirement,
profitability is largely dependent on the company's ability to increase volumes of sales. The shortage of
quality wheat bread in the domestic and regional market is making the sector challenging and it
adversely affecting the operations and profitability of bakeries. According to CSA, 2013/14 report in
Ethiopia there are 217 bakeries making same products of which 57% are held in sole ownership, 30% are
PLC and 5% are share companies as shown in the following figure.

FIGURE 1: Bakery Businesses Source: CSA, 2016 During the years 2007 - 2016, the country consumed an
average of 1,375,380 tons of bread products out of which the Benishangul Gumuz market contributed
an average of 64%. The table below presents the total supply of breads in Ethiopia for the years 2007 to
2016 and the share Benishangul Gumuz suppliers of production in the total supply. TABLE 3: TOTAL
SUPPLY OF Bread 2007-2016 Year Total Supply Supply in A.A 2007 97,220 62,22 1 2008 104,512 66,88 8
2009 112,350 71,90 4 2010 120,776 77,29 7 2011 129,834 83,09 Public, 1% Individual ownership, 57%
Partnership, 4% share company, 5% PLC, 30% Co-operatives, 2% Others, 2%

4 2012 139,572 89,32 6 2013 150,040 96,02 6 2014 161,293 103,22 8 2015 173,390 110,97 0 2016
186,394 119,29 2 Total Supply 1,375,381 880,24 4 3.1.2 General Demand Analysis In the process of
demand analysis and estimation for the product under consideration, a thorough analysis of the set of
factors that influence the marketing forces are essentially important and necessary. The first step in the
process involves the analysis of the underlying characteristics of the target markets and their general
macroeconomic environmental aspects. Accordingly, the demand for Flours is a derived demand, which
depends directly on the performance of its major end users and other general factors, which commonly
affects the products. The following factors are identified to be determent of the demand position of the
products under consideration. ● Performance of the national economy; ● Rate of population growth
and ● Urbanization Accordingly, a throughout assessment of current status and future prospect of these
factors is done as follows.

A. PERFORMANCE OF THE NATIONAL ECONOMY Among the factors that influence the demand for
Flours, one of the critical factors is identified to be economic growth leading to construction and
infrastructure development. Growth in Flours products consumption has been correlated to economic
growth in the developing world. In Ethiopia as a result of the appropriate policy adopted by the
government in recent years the country's economy is on a higher growth trajectory. According to the
Ministry of Finance and Economic Development (MOFED), the GDP of the country has registered an
average annual growth rate of 10.9 % during the last 11 years ending in 2013/14 which places Ethiopia
among the top performing economies in Sub-Saharan Africa. The agriculture, industry and service
sectors' annual average growth was 9.0%, 13.8 % and 12.2% respectively. According to MOFED, in the
last four (2011-2014) Growth and Transformation Plan (GTP) implementation period, the Ethiopian
economy has also registered robust growth. In this period, the GDP annual average growth rate was
10.1%. Agriculture, Industry and Service sectors have 6.6 %, 20.0%, and 10.7% annual average growth
rates respectively. The economic growth (GDP at constant basic price) for 2014 is estimated to be 10.3
%. As per MOFED's estimates, annual growth rates of the major sectors, i.e. Agriculture, industry and
service were 5.4 %, 21.2 % and 11.9%; respectively and their shares out of the total GDP were about
40%, 14% and 46 %, respectively. The registered economic growth (10.3%) was obviously based on the
contribution of wide range of economic activities. The contribution of these activities by major industrial
classification shows that Agriculture; Industry and service industries have contributed 2.3 %, 2.7% and
5.3 % respectively. The following table depicts the detail value added as percentage of GDP in each sub
sectors for the years 2017/18 to 2020/21.

PERCENTAGE SHARE OF ETHIOPIA'S GDP IN EACH SUB-SECTOR Industry\Year 2017 /18 2023 /19 2019
/20 2020 /21 Agriculture, Hunting and Forestry Crop Animal Farming and Hunting Forestry 44.6 30.9 9.6
4.1 43.1 29.8 9.3 3.9 42.0 29.4 8.9 3.7 40.1 28.4 8.3 3.5 Fishing 0.0 0.1 0.1 0.1 Mining and Quarrying 1.4
1.5 1.4 1.3 Manufacturing Large and Medium Scale 4.0 2.6 4.1 2.8 4.4 3.1 4.4 3.2 Manufacturing Small
Scale and Cottage Industries 1.4 1.0 1.3 1.1 1.2 1.1 1.2 1.1 Electricity and Water 4.0 4.9 6.1 7.6
Construction 14.9 15.4 15.5 16.1 Whole Sale and Retail Trade Hotels and 3.6 3.6 3.9 4.5 Restaurants
Transport and Communications 4.2 4.3 4.5 4.7 Financial Intermediation 2.5 2.9 2.4 2.6 Real Estate,
Renting and Business Activities 9.3 8.8 8.4 7.9 Public Administration and Defense 5.4 5.1 5.0 4.7
Education 2.3 2.2 2.2 2.2 Health and Social Work 0.9 0.9 0.9 0.9 Other Community , Social & Personal
Services 2.3 2.4 2.6 2.4 Private Households with Employed Persons 0.2 0.3 0.2 0.2 Total 100.7 100.6
100.6 100.7 Source: MoFED Positive performance of the Ethiopian economy is expected to continue in
the future. According to the government's "Growth and Transformation Plan" during the period 2016 -
2020 the GDP of the country is expected to grow at an average annual growth rate of 11%. As a result,
demand

for the products under consideration is also reasonably expected to increase as economic expansion
continues which in turn will increase the demand for Flours. B. POPULATION GROWTH Population is a
key driver of good and service demand. According to CSA, the population of Ethiopia grew at an average
annual rate of 2.6 percent between 1994 and 2007. As shown below, the number of population is
expected to be 129 million in year 2030 from the current number of 85.3 million. From the projection,
the number of population in year 2030 will be doubled of number of population which was in year 1995.
FIGURE 2: ETHIOPIA: POPULATION PROJECTION, 1995-2030 If population increases then there will be
high demand of goods and services. As the population increases, the demand for the residential houses
will also increase which in turn increases the demand for the products under consideration. - 20,000,000
40,000,000 60,000,000 80,000,000 100,000,000 120,000,000 140,000,000 1995 2000 2005 2010 2015
2020 2025 2030 NO. of population

C. URBANIZATION As urbanization indicate people's living standard, it is a major factor for a higher
demand of goods and services. In Ethiopia, urban population growth rate is projected to increase by 4%
annually, the major contributing factor being the rural-urban migration. By the end of the 2009/10, the
total urban population reached to 14.4 million, amounting 17.2% from the level of 11.7 million by the
end of 2004/05. Benishangul Gumuz, Dire Dawa, Harar, Nazareth, Gondar, Dessie, Mekele, Bahir Dar
Jimma and Hawasa are assumed to be major urban areas of the country. As Benishangul Gumuz is a
capital city of Ethiopia, the city holds the highest number of population followed by Dire Dawa and
Hawassa. The table below explains the number of population in major urban areas of the country.
URBAN POPULATION NUMBER Towns Number Of Population in Town Benishangul Gumuz 4,041,002
Dire Dawa 387,000 Hawassa 328,875 Mekele 273,601 Bahirdar 240,422 Nazareth 127,842 Gondar
112,249 Desse 97,314 Jimma 88,867 Total 4,697,172 Sources: CSA, 2007 Benishangul Gumuz holds 65%
share of the total population, 8% of the country lives in Diredewa and 7% of the population lives in
Hawassa. And Jimma holds the least number of populations of the country with 2%. Consequently, the
demand for goods and services is assumed to grow with the average growth rate of urbanization.

3.2.1.2 Bread Demand The markets for breads are derived from the different factors, such as ✔
increasing number of population, ✔ increase in household income & life style, ✔ Number of commercial
and service rendering sectors, hospitality service providers, universities and hospitals as well as
establishment of other business organizations creates a demand. 3.3. Target Markets and Strategy 3.3.1
Target Market The markets for business are ✔ Households ✔ Cafes ✔ Hospitality service providers, ✔
universities and hospitals as well as establishment of other business organization 3.3.2 Marketing
Strategies A. PRODUCTS QUALITY Product quality is one of the basic and most important marketing
mixes that affect the success of a the business. Product quality has two dimensions, i.e., level and
consistency. Level means the producer must first choose a quality level that will be acceptable in the
target market and in a level that comply with the quality of competing products. Consistency refers to
the consistent delivering of established quality through strict quality control measures. The products by
the envisaged bakery will have;
• Good quality, • Fulfill the standard criteria set for product commercialization, Brand will be developed
to create independent identity and image. • Brand positioning statements will also be developed B .
Pricing Pricing a product is an important and critical activity since it is the major factor in determining
revenue. If a lower price is fixed, it will affect the profitability of the company, and if a higher price is
fixed, the product will not be able to stand in market competition and may be forced out of the market.
Therefore, pricing strategy will be: Affordable pricing. continuously monitoring competitors' price Price
revision is going to be performed when the need arises, and The right price has to be fixed. C. Channels
of Distribution The following are the main alternative distribution channels commonly used by
producers to reach consumers. Direct sale to consumers: - Manufacturer Consumer Indirect sale
through the medium of third party:

- Manufacturer Wholesale Retailer Consumer - Manufacturer Agent Wholesaler Retailer Consumer -

Manufacturer Retailer Consumer Accordingly, for the envisaged bakery by taking the nature of its
product marketing under consideration; both direct and indirect distribution is selected as the most
appropriate distribution channel. Therefore, at least one factory-outlet shop is required to be rented in
the premises of the envisaged bakery. D. Promotion Strategy In a competitive market, trade promotion
should be made to persuade or to make a product attractive for end users. Such trade promotional tools
include; credit and discount with the volume of products sold etc. The envisaged factory is
recommended to offer discounts with the volume of product bought and credit for one to two weeks. As
the product of the envisaged project is entering a competitive market it has been assumed that the cost
of promotion will be 1% of the annual sales revenue throughout the operation life of the project. This
promotion expense has been included in the financial analysis part of this study. IV. PRODUCTION PLAN
AND TECHNICAL STUDY 4.1 LOCATION AND SITE The location of the envisaged bakery will be strategic as
it is to be situated in an area where the basic utilities such as electricity, water and telephone lines are
available at reasonable cost. Availability of infrastructure for transporting the raw material to the factory
site and finished product to the market are another advantage that the location selection will consider.
In this regard, the project will be located in Benishangul Gumuz Region , Dangur woreda,Manbuk town .

4.2 PROJECT STATUS The business is a new establishment intended to establish bakery project mainly to
produce and distribute high quality breads and pastry for domestic market. 4.3.PRODUCTION CAPACITY
AND PROGRAM The envisaged bakery project is assumed to be installed with high quality bread and
pastry baking machine having capacity of 5,000 Pcs of (250g) bread in 8 (eight) hours. With the
assumption of 16 hours/day in two shifts, it expected to produce 10,000 Pcs/day as tabulated below.
Furthermore, the project has planned to start production program at 70%, 80%, 90% and 100% during 1
st , 2 nd , 3 rd and 4 th years respectively. Table-4.1: Daily Production Capacity PARTICULAR UOM TOTAL
CAP. CAP/Hr. Max production hrs per day Hrs 16 Max capacity Hourly In Pcs PCS 10,000 500 In grams
(250/pcs) grams 2,500,000 25,000 In Kg Kg 2,500 125 Table-4. 2- Production Capacity in (Kg)/Annum
Products in Kgs Yr-1 Yr-2 Yr-3 Yr-4 Total 420000 480000 540000 600000 Breads 70% 252000 288000
324000 360000 Pasteries 30% 168000 192000 216000 240000 Capacity utilization (%) 70% 80% 90%
100% Table-4. 3- Production Capacity in (Tons)/Annum Products in Kgs Yr-1 Yr-2 Yr-3 Yr-4 Total 420 480
540 600 Breads 70% 252 288 324 360 Pasteries 30% 168 192 216 240 Capacity utilization (%) 70% 80%
90% 100%
[ 4.4 PRODUCT TECHNOLOGY AND MACHINERIES The envisaged production technologies are well-
developed and in standardized process. The list of machinery for the production of 5,000 Pcs of breads
per 8 hours or 10,000 Pcs/16 hours for breads with 250g each is shown in the Table below and related
total cost of machineries as per Pro-forma invoices shows that total of US$ 82,733.00 that equivalent to
ETB 2,316,524 .00 at prevailing exchange rate. Table-4. 4- Production Process Machineries and
accessories.

/N MODEL DESCRIPTION UOM Qnt. U/cost($) T/cost($) T/ cost(Birr)

1 PMDF Rotary Rack Oven with diesel burner Riello•, Capacity; 5000 pcs bread d250g) in g bows, •
Trolley capacity: 13 pes tray troll*' from 60xS0cm baking pan. • Distance betwccn shelves; • Designed
fib!' heavy -duty baklng conditions hours operation ability per day), CE safety Jequirements_ • Large
observation window •and high heat resistant glass. • Powerful steam generator. • Durable rotary
platfrom for trolley. Electrical power: 2.6. • Diesel consumption: • Digitat control panel. • Weight Of
oven: 1550kg. Ovcrall dimensions of oven: 16gx240x230cm. • Furnace firebox is made of resistive
staunless Sleel AISI 321S. • Outside coven, hoods and bakill chamber arc mude af PCS 1.0 0 21.550.00
21,550.00 603,400.0 0 Tray trolleyTrollcy capacity: 16pcs traysBfiking pan 61)xlOOcm_ Distance bccwccn
shelves: ICIcm.Mad€ of Stainless Steel. pcs 4.00 690.00 77,280.0 0 3 Baking trays- perforateddakllig pan
dimensions: 60x80cm Material: Aluminium so,o o 30,00 PMVD Volumct:rie Dough Dividerl)dllgll divid ing
I OO-601)g, Working capacity pcs/h. capacity: 60kg, Socking piston anticorrosive. Weight adjusting
•system: mechan Electrical consumptlori; 1.5 K',v. He•ght of daugh exit: 911•110 Cin (adjustable in
levels). Overall dimensiOns of the machine: 67hl 40xl Weight kg, All outside hoods, lids. und hopper
mare made or stainless Steel pc s 1,0 0 6,200-00 173,600. 00 PMCR Conical Rounding MachincDough
rounding 100=600g. Height 850 mm, Height of dough exit: 950 mm. Belt and pulley 1.0 0 4,100.00
4,100.00 1 V, $0000

driving system. Weight oi- machine: 210 kg. Electrical power: kw. Noiseless flour sprinkler. Overall
dimensions of the machine: 100x915x IS3cm. Completely stainless steel conc and arc madc of 6 PMDR30
M I)rivcr and Round Manual; Madc of Electrostatic. Head made of anti corrosion cast aluminium for food
purpose. Pressing, driving and rolling working cycle activated by levers, 18,110 Stainless blades, W2
automatic . NC. divisions: -30/ (40-135) opening 70 cm. Hopper capacity 4 kg, 64 ,640. OO 11,640.00
325,920.0 0 PMI)M4 00 Long Mould.el' Machine Capacity 5000 pcs."h. Dough lilouldilig weight: 70- 1350
gMax. mcualding length: 400mm_ Numb.r bf pressing board: pcs. Height daugh entrance: 1 180 mm.
Height "f dough exit: 640 mm. Overall Dimensions 22Sx10x200cm_ Dough centering naps, With four
rollers. Adequate for Human heelth. Roller gap is adjustable between O -75 num. Elcctrical power. (1.75
kw. Wclght of machine; 230k . Co leiel stainless steel, 1.0 0 131,600.0 0

Spiral Mixer Wilh Fixed Bowl Max. flour capacity "kg, Dough capacity: 120kg2 speed, 2 tuner Short
kneading process_ Bowl runs forward and reverse. Provides mote homogenate dough and bigger
volutiie bread. Machine works in manual and automatic cyvic with two programmable timers. Bowl Size:
80±4Scrn. Electrical consumption: 191- 4-6Ku•. W eight of the machine SOOkg. Overall dimensiow
83x133xl 34em. Main body is painted with high quality electrostatically. paint. Bowl, cuttln blade & "inl
arm stainless stccl 1. 00 8,900 251,720.0 0 9 PMBS 500 Bread Slicilkg MachiacCapacity: 500 pc:sflu.
Thidkness of slicer; 14 mm. Max. bread length: 480 mm, Bread height/ (min. - max.): SO - 160 mm.
Dimensions: 120. Electrical power 220V : Wei 1 of machine 160 1.0 0 4,800.00 134400.0 0 10 60 Plantary
Mixer: Machine working noiseless and without Vibration. heavy duty body Construction. Sany guard
stainlvss bowl Capacity 60 1. motor miatioa: 55-110-120 rpm. Attachment rotaryf 140-280-520 rpm,
Overall Dimensions 3 speed motor. phase 380v. Electrical power; Wei t Of' machine? l_o o 11 PMCU
Climator Unit:- Produces homogenious stcam and Room tcmpraturc and humidity automatically
controlled, Capacity; 1 (3MYh. Relative humidity Water intel: 1/2. Dimensslon: I snem_ Electric power
Weight SOkg. All components Of the device are made or stain steel. 1.0 0 3,500.00 98000.00

PMBS 500 Generator T Model: Standby PowerSOKVA. • 45 M6dc1: TJ50PR5C Auto generator L.OVO &
CROMPUON. Sound roof cabin, 3k switch pcs 1.0 0 9,333.00 261,324.0 0 TOTAL 82,733.0 0 4.5 SOURCES
OF BASIC RAW MATERIALS, AUXILLIARY AND UTILITIES The basic raw material for bread baking project is
different kinds of flour products. Flour for baking bread is produced from hard wheat or a blend of hard
and soft wheat, while flour for cakes and biscuits is milled from soft wheat. On the other hand, Auxiliary
materials required are input materials used in bakery business. Hence, sources of both basic and
auxiliary inputs are available from local/domestic market. The estimated annual cost of raw and auxiliary
materials is given in the tables below. Table- 4.5 : Flour consumption Description 100% 90% 80% 70%
UOM Kg Kg Kg Kg Wheat flour 360000 324000 288000 252000 white flour 240000 216000 192000
168000 Table -4.6: water consumption Description 70% 80% 90% 100% UOM qub. Ltrs. qub. Ltrs. qub.
Ltrs. qub. Ltrs. Water (0.001 Cub/kg) 420 480 540 600

Table - 4.7: Electric consumption Description 100% 90% 80% 70% UOM KW/hr KW/hr KW/hr KW/hr
OVEN 3.60 3.24 2.88 2.52 Volumetric Dough Divider 1.50 1.35 1.2 1.05 Conical Rounding Machine 1.50
1.35 1.2 1.05 Spiral Mixer with Fixed Bowl 3.40 3.06 2.72 2.38 Bread Slicing Machine 0.55 0.495 0.44
0.385 Total 10.55 9.50 8.44 7.39 Table- 4.8: Consumption of Auxiliary materials Description 100% 90%
80% 70% Salt (0.010g/kg) 3,600 3,240 2,880 2,520 Sugar (0.05g/kg) 12,000 10,800 9,600 8,400 Yist
(0.010g/Kg) 6,000 5,400 4,800 4,200 Oil (0.025ltr/kg) 15,000 13,500 12,000 10,500 Baking powder
12,000 10,800 9,600 8,400 others 0.05% of flour 300 270 240 210 Total 48,901 44,011 39,121 34,231
Table- 4.9: Basic Raw Materials Costs at Different Capacity Utilization Rate Description UO M Unit price
70% 80% 90% 100% wheat flour Qtl. 1,750 378,000 432,000 486,000 540,000 white flour Qtl. 1,700
285,600 326,400 367,200 408,000 Total 663,600 758,400 853,200 948,000 i. Table-4.10: AUXILIARY
MATERIALS COST Vs CAPACITY RATE Description UOM Unit Cost 70% 80% 90% 100% Salt Birr 20.00
50,400 57,600 64,800 72,000 Sugar Birr 50.00 420,000 480,000 540,000 600,000

Yist Birr 5.00 21,000 24,000 27,000 30,000 Oil Birr 90.00 945,000 1,080,000 1,215,000 1,350,000 Baking
pouder Birr 10.00 84,000 96,000 108,000 120,000 others 1% of flour Birr 10.00 2,100 2,400 2,700 3,000
Total 1,522,500 1,740,000 1,957,500 2,175,000 Table- 4.11: UTILITIES REQUIREMENTS & COST
Description UOM Unit price 70% 80% 90% 100% Electricity KWH 1.25 32,916 35,590 40,039 44,487
Water Qub. Ltrs. 4.8 2,016 2,304 2,592 2,880 Total 34,932 37,894 42,631 47,367 4.6 Other Investment
Activities and Costs 4.6.1 Building and Civil Works The total plot area required for the envisaged bakery
project for production plant is about 150 m , out of which the total area on which baking plants to be
installed including spaces for storage of raw materials as well as finished products is estimated to be 120
m , which needs partitioned according to the need. Thus, the total building construction/remodeling
investment cost at a rate of Birr 1,900/m2 is about ETB 285,000. 4.6.2 Office Equipment & Furniture The
business will have standard office spaces for employees at Administrative level to meet business
requirement that listed here under with financial requirements, Table-4.12: List of Office Furniture and
Equipment DESCRIPTION QTY UNIT PRICE TOTAL PRICE Metal File Cabinet 4 Drawer 1 5,500 5,500
wooden selves with glasses 1 4,500 4,500

Counters with shelves 3 3,200 9,600 Computer & Accessories 4 12,500 50,000 Computer desk 4 1,800
7,200 Clerical Table 4 2,500 10,000 Clerical Chair 4 2,300 9,200 Managerial Chair 2 3,500 7,000
Managerial Table 2 4,200 8,400 First Aid Kit, Metallic, Small 1 950 950 Guest chair with arm rest, leather
10 2,100 21,000 Printer, LaserJet 1 7,500 7,500 TOTAL 140,850 4.6.3 VEHICLES The company needs
vehicles in connection with production process and performing marketing activities. Table-4.13: Vehicle
Type and Related costs Description Quantity UNIT PRICE Total Cost Mini Van 1 900,000 900,000 ISUZI-
FSR (Truck) 1 1,100,000 1,100,000 Total 2 2,000,000 4.6.4 Power Supply Generator The project needs
automatic power supply generator, which will be necessary to overcome problems related to electric
power interruption. Table-4.13: Power Supply Generator and Related costs Description Quantit y UNIT
PRICE Total Cost Power Supply Generator 1 450,000 450,000

Total 1 450,000 V.ORGANIZATION AND MANAGEMENT 5.1 ORGANIZATION In the proposed organization
structure, the G/Manager will oversee the overall performance of the plant while the day-to-day
operation of the plant is led by Operations unit supervisor. There shall be three departments:
Production & Technical, Administration & Finance, and Marketing & Procurement Departments. All the
departments shall have two divisions. Quality controllers shall be deployed under Production and
Technical Department and will report to the general manager. Profitability and success of any business
organization depends on its success in sales. Sales performance, in turn, depends on good knowledge
and experience of the market. Therefore, it is important to establish and staffing a market research
division, whose main activities focuses on market research and promotion. Thus, the proposed bakery
business Organizational structure is indicated below. Owner/ G/Manager Administration & Finance
Dep't Production & Technical Dep't Procurment & Marketing Dep't

5.2 HUMAN RESOURCE According to the organizational structure, the human resource by category and
qualification including monthly and annual salary is summarized in table below. It is estimated that the
employee's benefits will be 10% of the basic salaries and wages per annum. To ensure and improve the
competence of the company and to increase the market share of the factory/bakery project, it is
important that all the senior positions proposed be run by qualified and well versed professionals in the
industry. For the smooth operation of the envisaged bakery project a total of 28 permanent employees
are required that will cost the company a total of Birr 1,113,420 per annum including benefits. Table
below shows Human Resource Requirements and Related Costs. Table-5.1: Human Resource
Requirements and Related Annual Costs Description Title No Pos. Salary Monthly Salary/ Yr. A. General
Manager's Office General Manager 1 9,500 9,500 114,000 Executive Secretary 1 3,500 3,500 42,000 Sub
Total 2 13,000 156,000 B. Production & Technical Dep't Store Keeper 1 4,000 4,000 48,000 Production
Forman 2 3,500 7,000 84,000 Mixer Operator 2 2,000 4,000 48,000 Machine Operators 2 3,000 6,000
72,000 Sub Total 7 21,000 252,000 C. Procurement & Marketing Dep't Marketing Officer 1 4,5 00 4,500
54,00 0 Sales Staffs 4 1,5 00 6,000 72,00 0 Purchasing Officers 2 4,5 9,000 108,00
00 0 Liaison Staff 1 2,0 00 2,000 24,00 0 Sub Total 8 21,500 258,00 0 D. Administration & Finance Dep't
Admin & Finance Head 1 6,500 6,500 78,000 Personnel Officer 1 3,750 3,750 45,000 Standby Electrician
1 2,500 2,500 30,000 Accountant/Cashier 2 3,100 6,200 74,400 Drivers 2 2,750 5,500 66,000
Cleaner/Janitors 2 1,100 2,200 26,400 Guards 2 1,100 2,200 26,400 Sub Total 11 28,850 346,200 Total
Salary 28 84,35 0 1,012,200 Employees Benefit 10% 8,435 101,220 Grand Total 28 92,785 1,113,420
VI.FINANCIAL ANALYSIS 6.1 BASIC ASSUMPTIONS FOR FINANCIAL ANALYSES 6.1.1 PROJECT LIFE The
operational life of the project, a standard assumption of 5 years is considered. Hence, the costs and
benefits of the project are computed over 5 years.

6.1.2 REPAIR & MAINTENANCE, SPARE PARTS AND INSURANCE COST The annual repair & maintenance
and Annealed parts costs of all fixed assets except vehicles as percentage of total cost has assumed to
be 1.5% while for vehicles it has been taken to 3% of total cost. 6.1.3 DEPRECIATION AND
AMORTIZATION Based on the Business Income Tax Proclamation Number 286/94, the following
depreciation rates are applied to depreciate the assets of the project: ➢ Buildings and associated civil
works 5% ➢ Machinery and equipment 20% ➢ Vehicles 20% ➢ Office furniture and equipment 20% ➢
Pre-Operating interest 20% 6.1.4 WORKING CAPITAL The working capital requirement of the project
during operation is calculated on the basis of the minimum days of coverage needed for the different
elements of the working capital. Hence, the minimum days are specified as follows:- Table-5.1:
Minimum Days for Working Capital Need Operating Costs/Year Working Days Raw Material Cost 90
Utility (Electricity cost + water) 90 Salary and wages 90 Administrative expenses 90 Selling Expenses 90
Fuel, Oil and Lubricants 90 Repair and Maintenance 90 Accounts Receivable 30 Accounts Payable 30
6.1.5 DISCOUNTING

The total investment and equity capital of the project are discounted at 11.5% over the project years
6.1.6 INCOME TAX The income tax rate taken is 35% of income before tax. 6.1.7 SOURCE OF FINANCE
The project is assumed to be financed from external source as bank loan and equity contribution. The
type of loan is further assumed to be a constant principal bank loan, with a loan repayment period of
Five (5) years at annual interest rate considered to be 11.5 percent. 6.2 RESULT OF FINANCIAL ANALYSIS
Projections are made based on above assumptions and all complete set of financial projections are
provided in this section. These projections include profit/loss statement, statement of cash flow and
balance sheets. The projections are prepared on an annual basis. Accordingly, the financial analysis
results are as discussed below . 6.2.1 TOTAL FIXED INVESTMENT COST The total investment cost of the
project including working capital is estimated at Birr 5,941,459. Out of this, cost of fixed investment is
assumed to be ETB 5,006,574 as the major breakdown of the total fixed investment cost is shown in
table below. Table-6.2: SUMMARY OF FIXED INVESTMENT COSTS Description Total Costs Building
Remodeling works 285,000 Machinery & Equipment 2,316,524 Vehicles 2,000,000 Power Supply
Generator 450,000 Office Furniture & Equipment 140,850 Pre-Production Expenses 150,000 Total Fixed
Investment 5,342,374

6.2.2 Working Capital Summary The envisaged bakery project needs to have sufficient finance to cover
initial working capital for smoothest flow of activities. Hence, Summary of related working capital break-
down is tabulated below : Table-6.2: WORKING CAPITAL SUMMARY Description Total Cost Raw Material
Cost 1,041,000 Salary & Benefits 278,355 Utilities 17,795 Fuel, Oil & Lubrications 47,375 Insurance
18,212 Repair & Maintenance 60,707 Other General Expenses 120,000 GRAND TOTAL 1,463,444 6.3
FINANCIAL STRUCTURE AND SOURCES 6.3.1 Investment Cost Structure As shown in table below, the
total investment costs required for the project is estimated to be approximately Birr 6.81 Million. Theses
financial plan is based on conservative estimates and assumptions. The company's investment cost
structure is assumed to be a combination of two sources. These are partly based on equity contribution
of the promoters, i.e, about ETB 2.16 million and partly on the basis of funds to be received from
external financer expected as bank's term loan facility of Birr 4.65 M illion. SUMMARY OF INVESTMENT
Description Equity Investment Bank Loan Needed Total Investment Building Remodeling works 285,000
285,000 Machinery & Equipment 463,324 1,853,20 2,316,52

0 4 Vehicles 400,000 1,600,00 0 2,000,00 0 Power Supply Generator 90,000 360,00 0 450,000 Office
Furniture & Equipment 140,850 140,850 Pre- production Expenditure* 150,000.00 150,000 Total Fixed
Investment 1,529,17 4 3,813,21 9 5,342,374 Working Capital (Raw Material) 208,20 0 832,80 0
1,041,000 Working Capital (Admin & General) 422,44 4 422,44 4 Total Investment Cost 2,159,81 8
4,646,00 0 6,805,818 6.3.2 LOAN REPAYMENT SCHEDULE The total amount of bank loan including
interest (at an interest rate of 11.5%) will be fully paid back within five years' time. Hence, the project
expects disbursement of ETB 4,646,000 up to end of November 2023; which is repayable in quarterly
basis with equal installment amount of ETB 308,686 at 11.5% interest per annum. The table below
presents Loan repayment schedule. Table-6.4: Bank loan Repayment Schedule Years Principal Payment
Interest 11.5% T/annual Payment Remaining Balance 0 4,646,000 1 731,246 503,500 1,234,745
3,914,754 2 819,035 415,710 1,234,745 3,095,719 3 917,365 317,381 1,234,745 2,178,354 4 1,027,499
207,246 1,234,745 1,150,856 5 1,150,856 83,890 1,234,745 - TOTA L 4,646,00 0 1,527,726 6,173,726

6.4 FINANCIAL VIABLITY AND STATMENTS 6.4.1 PROFITABILITY According to projected annual net profit
from sales of its products, the envisaged project will generate a net profit after tax of Birr 179,214
during its first year of operation and raises to Birr 2,696,982 in the 2 nd year and it reaches Birr 5.09
million at the 5 th year of operation. Net profit to equity and net profit to total investment or return on
investment (ROI ) are all attractive. The table below presents summary of projected income statement.
6.4.2 CASH FLOW The projected cash flow of the project shows that the project would generate positive
net cash flows throughout the operation years. The net cash flow generated by the project at the end of
year-5 will amounts to Birr 43.10 million which has been birr 4.80 million in the first year and 10.17
million during year-2 of operation. This implies the pay-back period of the project will be expected
during 3 rd period of operations. Details are shown in annex. 6.4.3 BALANCE SHEET The positive financial
performances of the project are manifested in the balance sheet as well. As can be seen from the
projected balance sheet depicted in annex, the net worth of the project, which was about Birr 6.80
Million at the beginning of the operation year, will rise to Birr 12.11 Million at the end of the project life.
Important financial efficiency ratios like current ratio, quick ratio, net working capital ratio, assets to
current liabilities, etc. all show that the project is highly liquid and has sound financial performance as
shown in annex. 6.4.4 FINANCIAL MEASURMENT A. Pay Back Period The investment cost and income
statement projection are used to project the pay-back period. The project's initial investment will be
fully recovered within 3 years. B. Internal Rate of Return and Net Present Value
Based on the cash flow statement, the calculated IRR before and after Tax as well as the net present
value (NPV) discounted at 11.5% are shown below. IRR After Tax 32% IRR Before Tax 49% NPV @ 11.5%
inter. rate 4,185,223 6.4.5 ECONOMIC AND SOCIAL BENEFITS The economic impact of the project can be
viewed in a number of ways. It can be viewed through its specific impact such as employment
generation and increasing government revenue. Moreover, other benefits such as the creation of
attractive environment for the development of the country should also be taken into account. The
project creates employment opportunities for 28 persons. Moreover, during the life of the project it will
generate an approximate of Birr 7.86 million over five year period in terms of corporate tax and also
contributes in the form of payroll tax. Furthermore the project will have foreign currency saving effect to
the country by exporting value added agri-products. VII. ANNEXES WORKING CAPITAL REQUIERMENT
INITIAL RAW MATERIAL COSTS Description of Costs Total Costs Cost 90 dys Annual Raw Material Costs
(wheat flour) 540,000 180,000 Annual Raw Material Costs (white flour 408,000 136,000 Annual Raw
Material Costs (Auxiliaries) 2,175,000 725,000 Total Costs 3,123,000 1,041,000

HUMAN RESOURCE REQUIREMENT (SALARY & BENEFITS) Descriptions Year 1 90 dd Salary Employees
Salary 1,012,200 253,05 0 Employees Benefits 101,220 25,305 Total 1,113,420 278,35 5 OTHER GENERAL
EXPENSES Descriptions Ann.Costs Cts / 90 dys Product Outlate (Sales) Shops 300,000 75,000 Professional
Expense(Audit, consultancy etc) 75,000 18,750 Stationary & P.T.T 10,000 2,500 Miscellaneous Expense
20,000 5,000 Promotional & Selling Expense 75,000 18,750 Total Other Expenses 480,000 120,000
UTILITIES Description Rate (Birr) Usage/Year T/CostYr. Cts / 90 dys Telephone Cosumption 0.50 Br/Mnt
10,000 5,000 1,250 Electricity Consumption 1.25Br/Kwh 50,640 63,300 15,825 Water consumption 4.8
Br/Cb.Lr 600 2,880 720 Total 71,180 17,795 FUEL, OIL AND LUBRICANTS Description Cost/Litter
Cons'n(Ltrs) Total Cost Cts / 90 dys Vehicles/Generator 18.95 10,000 189,500 47,375 INSURANCE
Description T/Asset Cost/year Cts / 90 dys Fixed Assets 4,856,574 72,849 18,212 Total 4,856,57 4 72,849
18,212 REPAIR & MAINTAINACE Description Total cost Cost/year Cts / 90 dys Building Remodeling works
285,000 14,250 3,563 Machinery & Equipment 2,316,524 115,826 28,957

Vehicles 2,000,000 100,000 25,000 Power Supply Generator 114,200 5,710 1,428 Office Furniture &
Equipment 140,850 7,043 1,761 Total 4,856,574 242,829 60,707 WORKING CAPITAL SUMMARY
Description Total Cost Raw Material Cost 1,041,00 0 Salary & Benefits 278,35 5 Utilities 17,79 5 Fuel, Oil
& Lubrications 47,37 5 Insurance 18,212 Repair & Maintenance 60,70 7 Other General Expenses 120,00
0 GRAND TOTAL 1,463,444 DEPRECIATION & AMORTIZATION DESCRIPTION T/Asset Depn. Rate Depn
cost Building Remodeling works 285,000 5% 14,250 Machinery & Equipment 2,316,524 20% 92,661
Vehicles 2,000,000 20% 80,000 Power Supply Generator 114,200 20% 4,568 Office Furniture &
Equipment 140,850 20% 5,634

Total 4,856,574 197,113 SUMMARY OF INVESTMENT Description Equity Investment Bank Loan Needed
Total Investment Building Remodeling works 285,000 285,000 Machinery & Equipment 463,305
1,853,219 2,316,524 Vehicles 400,000 1,600,000 2,000,000 Power Supply Generator 90,000 360,000
450,000 Office Furniture & Equipment 140,850 140,850 Pre- production Expenditure* 150,000.00
150,00 0 Total Fixed Investment 1,529,15 5 3,813,219 5,342,37 4 Working Capital (Raw Material) 208,20
0 832,80 0 1,041,00 0 Working Capital (Admin & General) 422,44 4 422,44 4 Total Investment Cost
2,159,79 9 4,646,019 6,805,81 8 INVESTMENT STRUCTURE Capital Contribution 2,159,799 Bank
Financing 4,646,019 TOTAL INITIAL INVESTMENT 6,805,818

Projected Profit/ Loss Statement Description Revenues year 1 year 2 year 3 year 4 year 5 Capacity Rate
70% 80% 90% 100% 100% Sales of Bread 2,817,010 4,200,000 4,725,000 5,250,000 8,092,810 Sales of
Pasteries and others 1,811,340 3,675,000 4,134,375 4,593,750 4,593,750 Total Revenue 4,628,350
7,875,000 8,859,375 9,843,750 12,686,560 Less: Direct Costs of Good Sold 1,873,800 1,068,017
1,201,251 1,334,486 1,467,934 Gross Profit 2,754,550 6,806,983 7,658,124 8,509,265 11,218,626
Expenses Salary & Benefits 1,113,420 1,280,433 1,472,498 1,693,373 1,947,379 Utilities 71,180 81,857
94,136 108,256 124,494 Fuel, Oil & Lubrications 132,650 152,548 175,430 201,744 232,006 Insurance
50,994 58,643 67,440 77,556 89,189 Repair & Maintenance 169,980 195,477 224,799 258,518 297,296
Other General Expenses 240,000 276,000 317,400 365,010 419,762 Dep'n Working Premises
Remodeling works 14,250 14,250 14,250 14,250 14,250 Dep'n Machinery & Equipment 92,661 92,661
92,661 92,661 92,661 Dep'n Vehicles 80,000 80,000 80,000 80,000 80,000 Dep'n Power Supply
Generator 4,568 4,568 4,568 4,568 4,568 Dep'n Furniture & Equipment 5,634 5,634 5,634 5,634 5,634
Interest Expenses 503,500 415,710 317,381 207,246 83,890 Total Expense 2,478,837 2,657,781
2,866,195 3,108,816 3,391,128 Profit before Tax 275,713 4,149,203 4,791,929 5,400,449 7,827,498 Tax
(35%) 96,500 1,452,221 1,677,175 1,890,157 2,739,624 Net profit 179,214 2,696,982 3,114,754
3,510,292 5,087,874

Projected Cash Flow Statement Description Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Equity Capital
2,159,818 Loan principal 4,646,000 Net Increment 179,21 4 2,696,982 3,114,754 3,510,292 5,087,874
Total Cash in flow 6,805,818 6,985,032 9,682,01 4 12,796,76 7 16,307,059 21,394,933 Cash payment
Capital Investment 5,192,37 4 Direct Material Purchase 1,041,00 0 Pre-Operating Expenses 150,00 0
Salary & Benefits 1,113,420 1,280,433 1,472,498 1,693,373 1,947,379 Utilities 71,180 81,857 94,136
108,256 124,494 Fuel, Oil & Lubrication 132,650 152,548 175,430 201,744 232,006 Insurance Expenses
50,994 58,643 67,440 77,556 89,189 Repair and Maintenance 169,980 195,477 224,799 258,518
297,296 Other General Expenses 240,000 276,000 317,400 365,010 419,762 Loan repayment 3 731,246
819,035 917,365 1,027,499 1,150,856 Tax payment 96,500 1,452,221 1,677,175 1,890,157 2,739,624
Total payment 6,383,374 2,605,969 4,316,21 4 4,946,24 1 5,622,11 3 7,000,605 Cash surplus/ deficit
422,444 4,379,063 5,365,800 7,850,526 10,684,946 14,394,328 Cumulative cash in flow 422,444.33
4,801,507 10,167,30 7 18,017,83 3 28,702,779 43,097,107

Projected Balance Sheet Description Inv't Year (1) Year (2) Year (3) Year (4) Year (5) Assets Current
Assets working capital 1,463,444 1,609,78 9 1,770,76 8 1,947,844 2,142,629 2,356,89 2 Cumulative
Increase 179,214 2,696,98 2 3,114,754 3,510,292 5,087,87 4 Other Current Assets 150,000 187,500
234,375 292,969 366,211 457,764 Total Current Assets 1,613,444 1,976,502 4,702,124 5,355,567
6,019,131 7,902,529 Fixed Assets Working Premises 285,000 285,000 285,000 285,000 285,000 285,000
Machinery & Equipment 2,316,524 2,316,52 4 2,316,52 4 2,316,524 2,316,524 2,316,52 4 Vehicles
2,000,000 2,000,00 0 2,000,00 0 2,000,000 2,000,000 2,000,00 0 Power Supply Generator 450,000
450,000 450,000 450,000 450,000 450,000 Office Furniture & Equipment 140,850 140,850 140,850
140,850 140,850 140,850 T/Fixed Assets Befor Depn 5,192,374 5,192,37 4 5,192,37 4 5,192,374
5,192,374 5,192,37 4 Accumulated Depn. (197,113 ) (197,113 ) (197,113) (197,113) (197,113 ) Net Fixed
Assets 5,192,374 4,995,261 4,798,148 4,601,035 4,403,922 4,206,80 9 TOTAL Assets 6,805,818
6,971,763 9,500,272 9,956,602 10,423,054 12,109,338 Liabilities and Equity Current Liabilities

Deduction Payable 392,970 1,043,925 1,799,095 2,671,922 3,677,74 2 Tax payable 522,120 700,941
901,693 1,127,279 1,381,017 Total Current Liabilities 915,090 1,744,866 2,700,788 3,799,201 5,058,759
Long-term Debt Bank loan Principal payable 4,646,000 3,914,754 3,095,719 2,178,354 1,150,856 Total
Long-term Debt 4,646,000 3,914,75 4 3,095,71 9 2,178,354 1,150,856 - Total Liabilities 4,646,000
4,829,844 4,840,585 4,879,142 4,950,057 5,058,759 Owners' Equity Investment Capital 2,159,818
2,159,81 8 2,159,81 8 2,159,818 2,159,818 2,159,81 8 Retained earning 170,253 2,562,13 3 2,959,016
3,334,777 4,833,48 0 Capital Description (197,113 ) (197,113 ) (197,113) (197,113) (197,113 ) Legal
Reserve (5%) 8,961 134,849 155,738 175,515 254,394 Total Owners' Equity 2,159,818 2,141,91 9
4,659,68 7 5,077,459 5,472,997 7,050,57 9 Total Liabil. & Equity 6,805,818 6,971,763 9,500,272
9,956,602 10,423,053 12,109,338 Internal Rate of Return (IRR) and Net Present Value (NPV) Title/Years
Project Years Title/Years 0 1 2 3 4 5 Gross Revenue 4,754,050 7,875,000 8,859,375 9,843,750 12,686,560
Working Capital Recovery Fixed Asset Recovery TOTAL BENEFIT - 4,754,050 7,875,00 8,859,375
9,843,750 12,686,56

0 0 Initial Inv't. 6,805,8 18 Operating Costs 3,117,257 3,479,037 3,876,690 4,315,788 4,802,975 TOTAL
COST EXCL.TAX 6,805,8 18 3,117,257 3,479,03 7 3,876,690 4,315,788 4,802,975 Income Tax 96,500
1,452,221 1,677,175 1,890,157 2,739,624 TOTAL COST 6,805,818 3,213,757 4,931,25 8 5,553,865
6,205,945 7,542,599 Net Benefit After Tax (6,805,818) 1,540,29 3 2,943,742 3,305,5 10 3,637,8 05
5,143,961 Net Benefit Before Tax (6,805,818) 1,636,79 3 4,395,963 4,982,6 85 5,527,9 62 7,883,585 IRR
After Tax 32% IRR Before Tax 49% NPV @ 11.5% inter. rate 4,185,223

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