Fruit Based Drinks

7/30/2019 Fruit Based Drinks

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Investment Office ANRS

Project Profile on the Establishmentof Fruit Based Drinks Processing

PLANT


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Table of Contents

Table of Contents.....................................................................................................2

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

2.Product Description and Application.................................................................3

3.Market Study, Plant Capacity and Production Program.................................3

3.1Market Study...........................................................................................................................33.1.1Present Demand and Supply............................................................................................3

3.1.2Projected Demand............................................................................................................4

3.1.3Pricing and Distribution...................................................................................................53.2Plant Capacity.........................................................................................................................6

3.3Production Program................................................................................................................6

4.Raw Materials and Utilities.................................................................................6

4.1Availability and Source of Raw Materials..............................................................................6

4.2Annual Requirement and Cost of Raw Materials and Utilities...............................................6

5.Location and Site..................................................................................................76.Technology and Engineering ..............................................................................8

6.1Production Process..................................................................................................................8


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1. Executive Summary

This profile provides basic information on the production of 3,250 tons ofFruit-Based Drinks

per annum. The total investment requirement of the project is estimated at about Birr 31.7

million; of which Birr 21 million is for machinery and equipment while Birr 4.8 million is the

cost of working capital. Based on the cash flow statement, the calculated internal rate of return

(IRR) and simple rate of return of the project are 20.1 % and 18.3 %, respectively. And the net

present value (NPV) at 18 % discounting rate is Birr 2,320 thousand. The plant is expected to

create employment opportunities for about 60 persons.

2. Product Description and Application

There are variety of fruit type from which drinks or juices can be made. The common fruits from

which fruit drinks or juices are made are orange, grapes, pineapples, mangoes, papayas and other

fruits of the citrus family. The juices or drinks are consumed usually during breakfast time or in

refreshment hours.

Processed fruits and drinks are normally made available in packed cans, bottles, plastic pouches

& cartons for commercial purposes. Fruit based drinks are basically prepared by adding water,sugar and possibly acid and flavouring agents to the fruit juice.

S C


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The volume of supply from these sources is limited. Particularly, the orange juice (note the plant

processes only orange juice) supply from Marti has been declining throughout the past ten years

while the supply of fruit based drinks from the Sabata Agro-industry is very small and its sale is

limited to Addis and the nearby towns. The third source of supply is import; which is the largest

source of fruit based drinks and juices in the country. During the last 15 years, because of the

relatively better availability of foreign exchange, imports of fruits drinks and juices have been

growing fast. Now all the so-called super-markets and even small and large grocery stores are

filled with imported fruit drinks and juices. Table 3.1 shows the past trend of imports of fruit

based drinks.

The main determining factors for the demand of fruit juices and drinks are income and

population size especially urban population. Admittedly, consumption of fruit juices and drinks

in the ANRS is confined to a small section of the urban population. However, the estimated

amount of fruit based drinks consumption in ANRS is not too small to establish a fruit based

processing plant in the region.

Table 3.1

Imports of Fruit Based DrinksYear E.C In Tons

1990 2,402

1991 2,474

1992 2,548


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- Estimated population of ANRS - 20 million

- Urban population (15%) of

CountryANRS

- Average urban population growth 5 % annum

- Average family size - 6 person /household- Potential urban consumers 10 % of the households

- Per capita consumption liter per week or 26 liter (Kg) /annum

Accordingly the projected demand is shown in Table 3.2.

TABLE 3.2

PROJECTED DEMAND FOR FRUIT BASED DRINKSYear E.C At ANRS (In Tons) At Country Level(In Tons)

2000 7800 30030

2001 8190 31532

2002 8600 33108

2003 9029 34763

2004 9481 36502

2005 9955 38327

2006 10453 40243

2007 10975 42255

2008 11524 44368

2009 12100 46586

2010 12705 48916


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based drinks; and plans to sell its products to wholesalers at Birr 10 per liter. The viable

distribution method is selling to wholesalers or authorized marketing firm which will sell to end

consumers through its chain selling to supermarkets.

3.2 Plant Capacity

The selected capacity of the plant for fruit processing and soft-drink production is medium-sized

one. An output of approximately 3,250 tons of finished juice per annum is envisaged based on

one shift operation of 275 working days in a year. The working days are set by deducting

Sundays and public holidays in a given year, and by assuming that annual maintenance works

and unexpected work interruptions take 25 days.

3.3 Production Program

As there are competing brands in the market, and the plant is new and is equipped with new

machinery, production build-up is made by starting at reduced capacity. In other words, the low

production level at the initial stage is helpful to develop substantial market outlets for the

product. Similarly, machinery operators will also get enough time to develop the required skills

and experience. For this, the plant will be operated at 60 %, 75% and 90 % of its installed

capacity in the first year, the second and the third year of operation, respectively.

4. Raw Materials and Utilities


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TABLE 4.1

RAW & AUXILARY MATERIALS REQUIREMENT

No Description Qty

Tons

Unit

Price

BirrF.C L.C Total

1 Fruits 8000 2000 - 16,000,00

0

16,000,000

2 Bottles and Cans

(No).

3,000,000 0.5 - 1,500,000 1,500,000

3 Sugar 300 7000 2,100,000 2,100,000

4 Preservatives &

Other Chemicals

1000,000 1000,000

Total 1000,000 19,600,00

0

20,600,00

The major utilities required for the plant are water and electricity. Water is used for washing the

fruits as well as for steam generation. Electric power is used as an energy source for boiler and

for driving the motors of the production machinery. The annual consumption of these utilities in

terms of quantity are 15,000m3 and 425 MWH for water and electricity, respectively. In terms of

value electricity is estimated to be Birr 233,750 where as that of water is Birr 39,750.

Table 4.2

UTILITIES REQUIREMENT


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6. Technology and Engineering

6.1 Production Process

The fruit is fed into the brush washing machine. The remaining impurities are then removed by

an air-injection washing machine. It then passes to the sorting line where damaged fruit is

eliminated. The citrus fruit is transported to the fruit extraction device, which is connected to the

oil separating device and the oil expeller device. Whole fruits are sorted according to size. Aftersorting according to size, the fruit passes in groups into the juice maker. From there the juice is

delivered by pump to the clarification device where solid impurities are removed. Mixed with

syrup, the purified fruit juice is pumped to the homogenizer. It passes through a preheated, an

aerator and a condenser and is delivered to the homogenizer by screw pump. The homogenizer

makes the micro-structure of the juice more homogeneous and improves its quality. The juice is

then delivered to the pasteurizer and pumped in. It is sterilized by being kept for a period at the

proper temperature. On leaving the pasteurizer, the juice passes either to the juice store or to the

filling and bottling section. The filling machine fills the juice into bottles, jars or plastic

containers.

Alternatively, fruit based drinks can be made using a cheaper production methods which require

a high proportion of manual work. However, it is not advisable to prepare fruit based drinks by


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TABLE 6.1

MACHINERY & EQUIPMENTS REQUIRED

Description: Quantity:

Brush-Type Fruit Washer 1

Air-Injection Fruit Washer 1

Fruit Sorting Line 1

Extraction Device 1

Oil Separation Device 1

Oil Expeller 1

Fruit Sorting Device 1

Juice Processor 2

Clarificator 2

Cleaning Device 2

Homogenizer 2

Pasteurizer 2

Process Pipeline 1 Set

Automatic Equipment 1 Set

Electric Fittings And Materials 1 Set

Special Tools 1 Set

Air Compressor 1Filler 1

Pot Manufacturing Device 1

Water Preparation Unit 1

Diesel Electric Power Station 1

Steam Boiler 1

Lathe 1

Bench Drill 1

Milling Machine 1

Bench Grinder 1

Mechanic's Tool Kit 1Electrician's Tool Kit 1

Tool Cabinet With Tools 1

Th ti t d t t l i f hi d i t i Bi 21 000 000 Of th t t l


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land lease value is about Birr 110,400 thousands; which is based on the land lease price of

Shewa-Robit for industrial purpose- which is Birr 27.60 per square meter. Of the total cost of the

lease, 5 % is paid in the beginning while the rest will be paid in 40years.

7. Human Resource and Training Requirement

7.1 Human Resource

The list of manpower requirement is shown in Table 7.1.

Table 7.1

MANPOWER REQUIREMENT

Description No. Monthly Salary

(Birr)

Annual

Salary (In Birr)

A. Administration

1. Manager 1 5000 600002.Chemical Engineer 1 3000 360003 Chemist 2 2300

55200

4. Technicians 3 2000 720005. Personnel Officer 1 2000 240006. Accountant 1 2000 240007.Seretary 1 1300 156008.Slaesman 1 1300 156009. Storekeeper 1 600 720010.Guards 4 300 14400


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7.2 Training Requirement

The plant is expected to be operated by competent and experienced production personnel. For

this purpose, appropriate training programme has to be designed and conducted for about 15

days. Training can be carried out during erection and commissioning period. Accordingly,

skilled operators, supervisors and quality control personnel will be trained, possibly by an expert

from technology supplier.

8. Financial Analysis

8.1 Underlying Assumption

The financial analysis of Fruit Based Drinks producing plant is based on the data provided in

the preceding chapters and the following assumptions.

A. Construction and Finance

Construction Period 2 Years

Source Of Finance 40% Equity and 60% Loan

Tax Holidays 2Years

Bank Interest Rate 12%

Di t F C h Fl 18%


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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 DaysAccounts Receivable 30 Days

Cash In Hand 30 Days

Accounts Payable 30 Days

8.2 Investment

The total investment cost of the project including working capital is estimated at Birr 31.7million as shown in Table 8.1 below. The owner shall contribute 40 % of the finance in the form

of equity while the remaining 60 % is to be financed by bank loan.

Table 8.1

Total Initial Investment

Items L.C F.C Total

Land 5,520 5,520

Building and Civil Works4,000,000 4,000,000

Offi E i t


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8.3 Production Costs

The total production cost at full capacity operation is estimated at Birr 30.2 million (See Table

8.2). Raw materials and utilities account for 76.6 % or 20.9 million.

Table 8.2

PRODUCTION COST AT FULL CAPACITY

Raw Material

Requirement Cost1.Local Raw Materials 19,600,000

2.Foreign Raw Materials 1,000,000

Total Production Cost at full Capacity

Items Cost

1. Raw materials 20,600,000

2. Utilities 273,500

3. Wages and Salaries 665,280

4. Spares and Maintenance 768,166

Factory Costs 22,306,946

5. Depreciation 2,666,055

6. Financial costs2,283,627

T t l P d ti C t


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II. Breakeven Analysis

The breakeven point of the projects is given by the formula:

BEP = Fixed CostSale Variable Cost at full capacity.

The project will break even at 29.1 % of capacity utilization

III. Payback Period

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

period. The project will payback fully the initial investment less working capital in four years.

IV. Simple Rate of Return

The projects simple rate of return (SRR) is given by the formula:

SRR= (Net Profit + Interest)/ (Total Investment Outlay) at full capacity utilization.

The SRR would be 18.3 % at full capacity utilization.

V Internal Rate of Return and Net Present Value


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9. Economic and Social Benefit and Justification

Based on the foregoing presentation and analysis, we can learn that the proposed project

possesses wide range of benefits that complement the financial feasibility obtained earlier. In

general the envisaged project promotes the socio-economic goals and objectives stated in the

strategic plan of the Amhara National Regional State. These benefits are listed as follows

A. Profit Generation

The project is found to be financially viable and earns on average a profit of Birr 4.1 million per

year and Birr 41.4 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 17.2 million 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

As there is no enough production of Fruit-Based Drinks in the country, the commencement of

this project relieves a portion of the import burden. That is, based on the projected figure we


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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 50% 70% 90% 100%

1. Total Inventory 0.00 0.00 2557777.26 3580888.16 4603999.07 5115554.52

Raw Materials in Stock- Total 0.00 0.00 906000.00 1268400.00 1630800.00 1812000.00

Raw Material-Local 0.00 0.00 687818.18 962945.45 1238072.73 1375636.36

Raw Material-Foreign 0.00 0.00 218181.82 305454.55 392727.27 436363.64

Factory Supplies in Stock 0.00 0.00 9388.64 13144.09 16899.55 18777.27

Spare Parts in Stock and Maintenance 0.00 0.00 32240.88 45137.23 58033.58 64481.76

Work in Progress 0.00 0.00 234715.91 328602.28 422488.65 469431.83

Finished Products 0.00 0.00 469431.83 657204.56 844977.29 938863.66

2. Accounts Receivable 0.00 0.00 1636363.64 2290909.09 2945454.55 3272727.27

3. Cash in Hand 0.00 0.00 47694.00 66771.60 85849.20 95388.00

CURRENT ASSETS 0.00 0.00 3335834.90 4670168.86 6004502.81 6671669.79

4. Current Liabilities 0.00 0.00 1636363.64 2290909.09 2945454.55 3272727.27

Accounts Payable 0.00 0.00 1636363.64 2290909.09 2945454.55 3272727.27

TOTAL NET WORKING CAPITAL REQUIRMENTS 0.00 0.00 1699471.26 2379259.76 3059048.27 3398942.52

INCREASE IN NET WORKING CAPITAL 0.00 0.00 1699471.26 679788.50 679788.50 339894.25

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 5115554.52 5115554.52 5115554.52 5115554.52 5115554.52 5115554.52

Raw Materials in Stock-Total 1812000.00 1812000.00 1812000.00 1812000.00 1812000.00 1812000.00

Raw Material-Local 1375636.36 1375636.36 1375636.36 1375636.36 1375636.36 1375636.36

Raw Material-Foreign 436363.64 436363.64 436363.64 436363.64 436363.64 436363.64

Factory Supplies in Stock 18777.27 18777.27 18777.27 18777.27 18777.27 18777.27

Spare Parts in Stock and Maintenance 64481.76 64481.76 64481.76 64481.76 64481.76 64481.76

Work in Progress 469431.83 469431.83 469431.83 469431.83 469431.83 469431.83

Finished Products 938863.66 938863.66 938863.66 938863.66 938863.66 938863.66

2. Accounts Receivable 3272727.27 3272727.27 3272727.27 3272727.27 3272727.27 3272727.27

3. Cash in Hand 95388.00 95388.00 95388.00 95388.00 95388.00 95388.00

CURRENT ASSETS 6671669.79 6671669.79 6671669.79 6671669.79 6671669.79 6671669.79

4. Current Liabilities 3272727.27 3272727.27 3272727.27 3272727.27 3272727.27 3272727.27

Accounts Payable 3272727.27 3272727.27 3272727.27 3272727.27 3272727.27 3272727.27

TOTAL NET WORKING CAPITAL REQUIRMENTS 3398942.52 3398942.52 3398942.52 3398942.52 3398942.52 3398942.52

INCREASE IN NET WORKING CAPITAL 0.00 0.00 0.00 0.00 0.00 0.00

2


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Annex 2: Cash Flow Statement (in Birr)

3


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Year 1 Year 2 1 2 3 4

TOTAL CASH INFLOW 10343949.00 13742891.52 16636363.64 21654545.45 27654545.45 30327272.73

1. Inflow Funds 10343949.00 13742891.52 1636363.64 654545.45 654545.45 327272.73

Total Equity 4137579.60 5497156.61 0.00 0.00 0.00 0.00

Total Long Term Loan 6206369.40 8245734.91 0.00 0.00 0.00 0.00

Total Short Term Finances 0.00 0.00 1636363.64 654545.45 654545.45 327272.73

2. Inflow Operation 0.00 0.00 15000000.00 21000000.00 27000000.00 30000000.00

Sales Revenue 0.00 0.00 15000000.00 21000000.00 27000000.00 30000000.00

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 10343949.00 10343949.00 14699571.23 15935169.63 21585998.51 22642458.12

4. Increase In Fixed Assets 10343949.00 10343949.00 0.00 0.00 0.00 0.00

Fixed Investments 9851380.00 9851380.00 0.00 0.00 0.00 0.00

Pre-production Expenditures 492569.00 492569.00 0.00 0.00 0.00 0.00

5. Increase in Current Assets 0.00 0.00 3335834.90 1334333.96 1334333.96 667166.98

6. Operating Costs 0.00 0.00 7526596.10 10457899.10 13389202.10 14854853.60

7. Corporate Tax Paid 0.00 0.00 0.00 0.00 3008567.96 3555585.14

8. Interest Paid 0.00 0.00 3837140.23 1734252.52 1445210.43 1156168.34

9.Loan Repayments 0.00 0.00 0.00 2408684.05 2408684.05 2408684.05

10.Dividends Paid 0.00 0.00 0.00 0.00 0.00 0.00

Surplus(Deficit) 0.00 3398942.52 1936792.41 5719375.82 6068546.95 7684814.61

Cumulative Cash Balance 0.00 3398942.52 5335734.93 11055110.75 17123657.70 24808472.31

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

4


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PRODUCTION

5 6 7 8 9 10


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 0.00Total 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


Sales Revenue 30000000.00 30000000.00 30000000.00 30000000.00 30000000.00 30000000.00


3. Other Income 0.00 0.00 0.00 0.00 0.00 0.00


4. Increase In Fixed Assets 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 14854853.60 14854853.60 14854853.60 14854853.60 14854853.60 14854853.60


8. Interest Paid 867126.26 578084.17 289042.09 0.00 0.00 0.00

9. Loan Repayments 2408684.05 2408684.05 2408684.05 0.00 0.00 0.00

10.Dividends Paid 0.00 0.00 0.00 0.00 0.00 0.00

Surplus(Deficit) 8227038.32 8340259.50 8542588.96 11153602.48 11153602.48 11153602.48

Cumulative Cash Balance 33035510.64 41375770.14 49918359.11 61071961.58 72225564.06 83379166.54

Annex 3: DISCOUNTED CASH FLOW-TOTAL CAPITAL INVESTED

5


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Year 1 Year 2 1 2 3 4



Sales Revenue 0.00 0.00 15000000.00 21000000.00 27000000.00 30000000.00


2. Other Income 0.00 0.00 0.00 0.00 0.00 0.00


3. Increase in Fixed Assets 10343949.00 10343949.00 0.00 0.00 0.00 0.00



4. Increase in Net Working Capital 0.00 0.00 1699471.26 679788.50 679788.50 339894.25

5. Operating Costs 0.00 0.00 7526596.10 10457899.10 13389202.10 14854853.60


NET CASH FLOW -10343949.00 -10343949.00 5773932.64 9862312.39 12931009.39 11249667.01

CUMMULATIVE NET CASH FLOW -10343949.00 -20687898.00 -14913965.36 -5051652.97 7879356.42 19129023.43

Net Present Value (at 18%) -10343949.00 -8766058.47 4146748.52 6002507.80 6669670.79 4917333.13

Cumulative Net present Value -10343949.00 -19110007.47 -14963258.96 -8960751.16 -2291080.37 2626252.76

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

6


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5 6 7 8 9 10



Sales Revenue 30000000.00 30000000.00 30000000.00 30000000.00 30000000.00 30000000.00


2. Other Income 0.00 0.00 0.00 0.00 0.00 0.00


3. Increase in Fixed Assets 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 14854853.60 14854853.60 14854853.60 14854853.60 14854853.60 14854853.60


NET CASH FLOW 11502848.63 11327027.73 11240315.10 11153602.48 11153602.48 11153602.48

CUMMULATIVE NET CASH FLOW 30631872.07 41958899.80 53199214.90 64352817.38 75506419.85 86660022.33

Net Present Value (at 18%) 4261017.92 3555837.56 2990352.79 2514647.39 2131057.11 1805980.60

Cumulative Net present Value 6887270.69 10443108.24 13433461.03 15948108.42 18079165.53 19885146.14

Net Present Value (at 18%) 19,885,146.14

Internal Rate of Return 37.7%

Annex 4: NET INCOME STATEMENT ( in Birr)PRODUCTION

7


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1 2 3 4 5

Capacity Utilization (%) 50% 70% 90% 100% 100%

1. Total Income 15000000.00 21000000.00 27000000.00 30000000.00 30000000.00

Sales Revenue 15000000.00 21000000.00 27000000.00 30000000.00 30000000.00

Other Income 0.00 0.00 0.00 0.00 0.00

2. Less Variable Cost 7195489.50 10073685.30 12951881.10 14390979.00 14390979.00

VARIABLE MARGIN 7804510.50 10926314.70 14048118.90 15609021.00 15609021.00

(In % of Total Income) 52.03 52.03 52.03 52.03 52.03

3. Less Fixed Costs 2468134.20 2521241.40 2574348.60 2600902.20 2600902.20

OPERATIONAL MARGIN 5336376.30 8405073.30 11473770.30 13008118.80 13008118.80


4. Less Cost of Finance 3837140.23 1734252.52 1445210.43 1156168.34 867126.26

5. GROSS PROFIT 1499236.07 6670820.78 10028559.87 11851950.45 12140992.54

6. Income (Corporate) Tax 0.00 0.00 3008567.96 3555585.14 3642297.76

7. NET PROFIT 1499236.07 6670820.78 7019991.91 8296365.32 8498694.78

RATIOS (%)

Gross Profit/Sales 9.99% 31.77% 37.14% 39.51% 40.47%

Net Profit After Tax/Sales 9.99% 31.77% 26.00% 27.65% 28.33%

Return on Investment 23.84% 36.44% 35.65% 39.24% 38.88%

Return on Equity 15.56% 69.24% 72.86% 86.11% 88.21%

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

8


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6 7 8 9 10

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

1. Total Income 30000000.00 30000000.00 30000000.00 30000000.00 30000000.00

Sales Revenue 30000000.00 30000000.00 30000000.00 30000000.00 30000000.00

Other Income 0.00 0.00 0.00 0.00 0.00

2. Less Variable Cost 14390979.00 14390979.00 14390979.00 14390979.00 14390979.00

VARIABLE MARGIN 15609021.00 15609021.00 15609021.00 15609021.00 15609021.00


3. Less Fixed Costs 2303874.60 2303874.60 2303874.60 2303874.60 2303874.60

OPERATIONAL MARGIN 13305146.40 13305146.40 13305146.40 13305146.40 13305146.40


4. Less Cost of Finance 578084.17 289042.09 0.00 0.00 0.00

5. GROSS PROFIT 12727062.22 13016104.31 13305146.40 13305146.40 13305146.40

6. Income (Corporate) Tax 3818118.67 3904831.29 3991543.92 3991543.92 3991543.92

7. NET PROFIT 8908943.56 9111273.02 9313602.48 9313602.48 9313602.48

RATIOS (%)

Gross Profit/Sales 42.42% 43.39% 44.35% 44.35% 44.35%

Net Profit After Tax/Sales 29.70% 30.37% 31.05% 31.05% 31.05%Return on Investment 39.39% 39.03% 38.67% 38.67% 38.67%

Return on Equity 92.47% 94.57% 96.67% 96.67% 96.67%

Annex 5: Projected Balance Sheet (in Birr)


Year 1 Year 2 1 2 3 4

9


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TOTAL ASSETS 10343949.00 24086840.52 27222440.23 32139122.41 37404975.72 43619929.71

1. Total Current Assets 0.00 3398942.52 8671569.83 15725279.61 23128160.52 31480142.11

Inventory on Materials and Supplies 0.00 0.00 947629.52 1326681.32 1705733.13 1895259.03

Work in Progress 0.00 0.00 234715.91 328602.28 422488.65 469431.83

Finished Products in Stock 0.00 0.00 469431.83 657204.56 844977.29 938863.66

Accounts Receivable 0.00 0.00 1636363.64 2290909.09 2945454.55 3272727.27Cash in Hand 0.00 0.00 47694.00 66771.60 85849.20 95388.00

Cash Surplus, Finance Available 0.00 3398942.52 5335734.93 11055110.75 17123657.70 24808472.31

Securities 0.00 0.00 0.00 0.00 0.00 0.00

2. Total Fixed Assets, Net of Depreciation 10343949.00 20687898.00 18550870.40 16413842.80 14276815.20 12139787.60

Fixed Investment 0.00 9851380.00 19702760.00 19702760.00 19702760.00 19702760.00

Construction in Progress 9851380.00 9851380.00 0.00 0.00 0.00 0.00

Pre-Production Expenditure 492569.00 985138.00 985138.00 985138.00 985138.00 985138.00

Less Accumulated Depreciation 0.00 0.00 2137027.60 4274055.20 6411082.80 8548110.40

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 10343949.00 24086840.52 27222440.23 32139122.41 37404975.72 43619929.71

5. Total Current Liabilities 0.00 0.00 1636363.64 2290909.09 2945454.55 3272727.27Accounts Payable 0.00 0.00 1636363.64 2290909.09 2945454.55 3272727.27

Bank Overdraft 0.00 0.00 0.00 0.00 0.00 0.00

6. Total Long-term Debt 6206369.40 14452104.31 14452104.31 12043420.26 9634736.21 7226052.16

Loan A 6206369.40 14452104.31 14452104.31 12043420.26 9634736.21 7226052.16

Loan B 0.00 0.00 0.00 0.00 0.00 0.00

7. Total Equity Capital 4137579.60 9634736.21 9634736.21 9634736.21 9634736.21 9634736.21

Ordinary Capital 4137579.60 9634736.21 9634736.21 9634736.21 9634736.21 9634736.21

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 BroughtForward 0.00 0.00 0.00 1499236.07 8170056.85 15190048.75

9.Net Profit After Tax 0.00 0.00 1499236.07 6670820.78 7019991.91 8296365.32

Dividends Payable 0.00 0.00 0.00 0.00 0.00 0.00

Retained Profits 0.00 0.00 1499236.07 6670820.78 7019991.91 8296365.32

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

PRODUCTION

5 6 7 8 9 10

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TOTAL ASSETS 49709940.43 56210199.94 62912788.90 72226391.38 81539993.86 90853596.33

1. Total Current Assets 39707180.43 48047439.94 56590028.90 67743631.38 78897233.86 90050836.33

Inventory on Materials and Supplies 1895259.03 1895259.03 1895259.03 1895259.03 1895259.03 1895259.03

Work in Progress 469431.83 469431.83 469431.83 469431.83 469431.83 469431.83

Finished Products in Stock 938863.66 938863.66 938863.66 938863.66 938863.66 938863.66

Accounts Receivable 3272727.27 3272727.27 3272727.27 3272727.27 3272727.27 3272727.27Cash in Hand 95388.00 95388.00 95388.00 95388.00 95388.00 95388.00

Cash Surplus, Finance Available 33035510.64 41375770.14 49918359.11 61071961.58 72225564.06 83379166.54

Securities 0.00 0.00 0.00 0.00 0.00 0.00

2. Total Fixed Assets, Net of Depreciation 10002760.00 8162760.00 6322760.00 4482760.00 2642760.00 802760.00

Fixed Investment 19702760.00 19702760.00 19702760.00 19702760.00 19702760.00 19702760.00

Construction in Progress 0.00 0.00 0.00 0.00 0.00 0.00

Pre-Production Expenditure 985138.00 985138.00 985138.00 985138.00 985138.00 985138.00

Less Accumulated Depreciation 10685138.00 12525138.00 14365138.00 16205138.00 18045138.00 19885138.00

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 49709940.43 56210199.94 62912788.90 72226391.38 81539993.86 90853596.33

5. Total Current Liabilities 3272727.27 3272727.27 3272727.27 3272727.27 3272727.27 3272727.27Accounts Payable 3272727.27 3272727.27 3272727.27 3272727.27 3272727.27 3272727.27

Bank Overdraft 0.00 0.00 0.00 0.00 0.00 0.00

6. Total Long-term Debt 4817368.10 2408684.05 0.00 0.00 0.00 0.00

Loan A 4817368.10 2408684.05 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 9634736.21 9634736.21 9634736.21 9634736.21 9634736.21 9634736.21

Ordinary Capital 9634736.21 9634736.21 9634736.21 9634736.21 9634736.21 9634736.21

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 BroughtForward 23486414.07 31985108.85 40894052.40 50005325.42 59318927.90 68632530.37

9. Net Profit After Tax 8498694.78 8908943.56 9111273.02 9313602.48 9313602.48 9313602.48

Dividends Payable 0.00 0.00 0.00 0.00 0.00 0.00

Retained Profits 8498694.78 8908943.56 9111273.02 9313602.48 9313602.48 9313602.48

11

Fruit Based Drinks

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