Addis Ababa University

College of Business and Economics

Department of Management
Program of International Business (MSc)
(Extension)

Group Assignment on Global Marketing

NAME OF GROUP MEMBERS

1.Antehunegne Amanu Mekuryaw GSE/4842/13

2.Arsema Seyoum Kelemwork GSE/3762/13

3.Aschalew Fedasa Milkesa GSE/8778/13

4.Atnafseged Getachew Feleke GSE/2126/13

SUBMITTED TO : DR. GETIE ANDUALEM (PHD)

July 2021
EXPORT MARKETING PLAN

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TABLE OF CONTENTS

1. MANAGEMENT BIOGRAPHY 3
2. WHY DO WE WANT TO EXPORT 3
3. MISSION STATEMENT 4
4. EXECUTIVE POLICY COMMITMENT DECLARATION 4
5. COMPANY ANALYSIS 5
5.1 EXECUTIVE SUMMARY 5
5.2 OBJECTIVES 6
6. BRIEF COM;PANY DESCRIPTION 6
6.1 VISION 7
6.2 KEYS TO SUCCESS 7
6.3 DESTAIL DESCRIPTION ABOUT COFFEES 8
6.4 ETHIOPIAN COFFEE SPECIALITIES 11
6.5 COMPANY SALES CONDITION 13
6.6 BENEFICIAL ATTRIBUTE OF COFFEE 16
6.7 COMPANY STUFFS AND ORGANIZATIONAL CHART 19
6.8 FINANCIAL AND NON FINANCIAL RESOURCES 21
7. EXPORT DOCUMENTATION AND PROCEDURE 28
7.1 REGULATORY COMPLIANCE 33
8. INDUSTRY ANALYSIS 34
8.1 INDUSTRY ANALYSIS SUMMARY 35
8.2 NEED AND WANTS 35
8.3 COMPITION AND BUYING PATTERNS 36
8.4 LOCAL COMPITITION 37
8.5 GLOBAL COMPITITION 39
9. TARGET MARKETS 40
9.1 PRICING STRUCTURE 40
10. GOVERNMENT RULE ON EXPORT 41
11. FINANCIAL PLAN 45
11.1 BREAK EVEN ANALYSIS 46
11.2 KEY FINANCIAL INDICATORS 47
11.3 CASH FLOW 50
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 1. MANAGEMENT BIOGRAPHY

The CEO has 20 years of experience in management, leadership, importing and exporting. A
Familiar leading shipping department of a corporation and managing many employees, And has
an Excellent administrative experience and highly organized to keep multiple orders straight and
on time. He has a good quality in Designing and implementing all export strategies, well
Supervising the work of sales staff, Preparing an effective business plan for all projects to achieve
the desired target, Monitoring all sales transactions and reviewing all customer response for all
orders and payments. The BarkumaDoka management team, is made up of 4 masters degree
holders and power full board directors which has a 5 members (MR. Getye Kebede - Masters of
plant Science, MR.Getahun Keberku- Masters in Agricultural Science, MS Lemlem Teshome-
Masters in Accounting and Financial Analysis , MR Thomas Workneh - Master of Logistic and
Supply chain management And MRS Eyerusalem Belay , Master’s in Information Technology).
Barkuma Trading Plc shall also have five marketing /sales staff, 2 operation and a driver mechanic.

2. WHY DO WE WANT TO EXPORT

It’s well-known that Exporting offers plenty of benefits and opportunities though there are some
complexities that come from exporting include: more paperwork, potential added financial risk,
cultural and language barriers, possible requirements that you modify your product packaging,
among others. However, we want to export for reasons include:

• Diversifying market opportunities so that even if the domestic economy begins to falter, you may
still have other growing markets for your goods and services.

• Access to more consumers and businesses. If you are only doing business in this country, you
may be limiting the total potential profits you could earn on opportunities to expand your business
worldwide.

• Expanding the lifecycle of mature products. If the domestic market seems saturated for your
goods and services, you can introduce them to new markets in other parts of the world.

• Potential financing assistance from U.S. government agencies through loan guarantees that can
help fund your exporting initiatives.

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Exporting doesn't only benefit us, our company, and employees. It also benefits the local and
foreign markets where you operate. Indeed, export and import activities help generate much-
needed jobs and support economic growth in the localities where they transpire.

3. MISSION STATEMENT

Barkumadokaplc goal is to produce and serve the market with affordable quality products
involving highly professionals and modern technology with the primary business of satisfying the
interests and needs of our customers. To use our know-how and global reach to bring the right
products to the right locations, at the right time. Team barkumaDoka seeks to serve coffee
importers and enthusiasts by exceeding minimum acceptable quality standards and by providing
the highest quality product at the lowest possible price. We value our relationships with current
and future customers and hope to communicate our appreciation to them through our outstanding,
guaranteed product quality, personal service, and efficient delivery. Our commitment to our
customers and the country of Ethiopia will be reflected through honest and responsible business.

4. EXPORT POLICY COMMITMENT STATEMENT

The management of BarkumaDoka trading Plc is committed to provide quality products to

different Asian , African and Europe markets. Our commitment extends to promoting strict
compliance on an on-going basis with terms and conditions. Our company is willing to utilize
necessary resources to ensure the success of our import/export venture.

As per our company policy that all employees, comply with the Ethiopian export policies and
regulations And Failure to comply with these regulations may result in the imposition of criminal
and/or civil fines penalties, including monetary penalties, and employees will be subject to
disciplinary action and/or termination.

The overall goals of barkumadokaplc is to develop long-term relationships with the wholesalers
and resellers successfully compete in the Asian , African and Europe markets.

The short-term goals are to: secure contracts with major wholesalers to develop prosperous
business relationships with these wholesalers.

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If you have any questions concerning the legitimacy of a transaction or potential violations,
please contact:

Getye Kebede / CEO

+251 921 616548
bdtradingdoc@gmail.com
Note: This statement of Corporate Commitment to Export compliance will be issued on
an annual basis or, if necessitated by personnel changes, changes in management, or
regulatory changes. Getye Kebede is responsible for disseminating this Statement
throughout the organization along with a copy of BarkumaDoka Families most current
Export Compliance Program.
5. EXECUTIVE SUMMARY

BarkumaDoka trading plc is engaged with exporting green Arabica coffee beans grown in Ethiopia
for exportation to Asia,, Europe and African markets . We will expand production capacity from
72,000/60kg bags per year to 120-160,000/60kg per year. Our coffee stands out from that of the
competition. We prepare the top five percent, in terms of quality standards, of all Arabica beans
on the market. Our customers seek this product as it provides them with a point of differentiation
to specialty roasters. In the past 3 years, demand for our coffee has exceeded the amount we are
able to supply and we have been forced to refuse requests for larger shipments.

We have positive indicators from current importers that the additional amount of beans will be
sold.

Our keys to success are:

- Establishing and maintaining working relationships and contractual agreements with

American importers and Brazilian coffee brokers and wholesalers.
- Bringing the new facility to maximum production within three years of operation.
- Increasing our profit margin with the use of improved technology in the new facility.

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 - Effectively communicating to current and potential customers, through targeted efforts,
our position as a differentiated provider of the highest quality Arabica beans in the
world.

Our values

- integrity

- ownership

- quality

- trust

- leadership

OBJECTIVES

The objectives of Barkumadoka Trading plcis :

- Increase production and sale from 78,000/60kg bags per year to approximately
100,000/60kg bags per year in the first year of operation at the proposed facility and
reach maximum capacity of 120,000/60kg bags per year by year three.
- Increase sales substantially in the first full year of operation.
- Establish strategic relationships with 10-15 world top importers
- Increase gross margins in the next three years.
6. BRIEF COMPANY DESCRIPTION

BarkumaDoka trading plc is is a company which has a strong performance record since its
establishment in the exporting green Arabica coffee beans to many customers located in south
Korea, Germany, France, Turkey, Saudi Arabia, Jordan, to china & South East Asian market. The
company Offer High Regard For Quality Inspection, Grading & Delivery Time For Our Meant To
Export. We Offer Door To Door Service To Goods Distributed Locally. We Visit Our Clients At
Their Sight, Exhibitions And Warehouses To Check And Maintain Their Level Of Satisfaction.

At present the company is mainly engaged in the following business sectors:

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 Ø Export and import of various items

Ø Dry cargo fleet transport service to and from port and across the country

Ø Heavy duty machinery rental service for the construction sector and

Ø Processing and cleaning service for all seeds, pulses and cereals

6.2 VISION

- We strive to be the top performer and preferred brand in agribusiness sector. To be the
best supplier of Ethiopian coffee Arabica and other agricultural products.
- To work towards a safe and sustainable future, contributing to the country effort of
providing sustenance for growing population in Ethiopia.

6.3 KEYS TO SUCCESS

The keys to success for BarkumaDoka Trading plc are:

- Establishing and maintaining working relationships and contractual agreements with

American importers and Brazilian coffee brokers and wholesalers.
- Bringing the new facility to maximum production within three years of operation.
- Increasing our profit margin with the use of improved technology in the new facility.
- Effectively communicating, to current and potential customers, our position as a
differentiated provider of the highest quality Arabica beans in the world.

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 6.3.1.1.1 DESCRIPTIONS ABOUT COFFEE

The story of coffee has beginnings in Ethiopia, the original home of the coffee plant, coffee
arabica, which still grows in the forest of the highlands. While nobody is sure exactly how coffee
was originally discovered as a beverage, it is believed that its cultiva- tion and use as early as the
9th century.

Kaldi, an Abyssinian goatherd, one day observed his goats behaving in abnormally exuberant
manner, skipping, rearing on their hind legs and bleating loudly. He noticed there were eating the
bright red berries that grew on the green bushes nearby. Kaldi tried a few himself, and soon felt a
novel sense of elation. He liked the flavor and the feel-good effect that followed.

He filled his pockets with the berry’s ad ran to home to announce his discovery to his wife. Today
those same berries, dried, roasted and rounded, have become the world’s second most popular non-
alcoholic beverage. Today Ethio- pia is Africa’s major exporter of Arabica beans, the quality of
the coffee of the world, and the variety that originated in Ethiopia, is still the only variety grown
there.

LOCATION AND ACCESSIBILITY

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The BARKUMA DOKA TRADING PLC washing and dry mill stations are very close to the
main roads and the sites are acces- sible all year round and is only 0.5km from main roads.

Specialty Coffee Department :

BARKUMA DOKA TRADING PLC produce Guji Specialty coffee from its own sites(washing
& dry mill stations) which the coffee grows at an altitude of 1750—2000 masl with different coffee
verities (74110, 74112, 74150 and local). The coffee plants grow under indigenous shade trees and
free from any type of chemical spray. The selectively handpicked red cherry coffees collected in
bamboo basket with greater care and the freshly collected cherries pulped within 8 hours. The
company has been processing and exporting both washed and unwashed coffees to the world. The
company provide all types of Ethiopian coffees prepared up to the standard and deliver timely to
buyer’s destina- tion with usual terms and conditions.

PRODUCTION AREA AND VOLUME :

BARKUMA DOKA TRADING PLC have been using its own three washing machine(Pre–
graders with De-Mucilager) pulping machines in two different coffee processing sites for the
prepara- tion of the washed coffees. The company also has big, clean and well-ventilated coffee
warehouses at each coffee processing site. In addition to the washed preparation, the company has
also prepar- ing natural/unwashed coffee using its own two hulling stations found in the Guji area.

LAND USE AND VEGETATION/LAND COVER :

The distribution of forest coffees around our sites are: Considering the current development in
forest coffee production, a more detailed assessment of the occurrence of actual forest coffee areas
is required for purposes of extension and marketing development.- The extent and location of
natural forest. These forests require specific management to ensure their conversion.Coffee
production in Ethiopia is a longstanding tradition which dates back dozens of centuries. Ethiopia
is where Coffeaarabica, the coffee plant, originates. The plant is now grown in various parts of the
world; Ethiopia itself accounts for around 3% of the global coffee market. Coffee is important to
the economy of Ethiopia; around 60% of foreign income comes from coffee, with an estimated 15
million of the population relying on some aspect of coffee production for their

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 livelihood. In 2006, coffee exports brought in 350 million,equivalent to 34% of that year's total
exports.

Ethiopia is the world's seventh largest producer of coffee, and Africa's top producer, with 260,000
metric tonnes in 2006. Half of the coffee is consumed by Ethiopians, and the country leads the
continent in domestic consumption. The major markets for Ethiopian coffee are the EU (about half
of exports), East Asia (about a quarter) and North America. The total area used for coffee
cultivation is estimated to be about 4,000 km2 (1,500 sq mi). The exact size is unknown due to the
fragmented nature of the coffee farms. The way of production has not changed much, with nearly
all work, cultivating and drying, still done by hand.

The revenues from coffee exports account for 10% of the annual government revenue, because of
the large share the industry is given very high priority, but there are conscious efforts by the
government to reduce the coffee industry's share of the GDP by increasing the manufacturing
sector.

The Tea and Coffee Authority, part of the federal government, handles anything related to coffee
and tea,such as fixing the price at which the washing stations buy coffee from the farmers. This
is a legacy from a nationalization scheme set in action by the previous regime that turned over all
the washing stations to farmerscooperatives.The domestic market is heavily regulated through
licenses, with the goal of avoiding market concentration.

Ethiopian coffee beans that are grown in either theHarar, Yirgacheffe or Limu regions are kept
apart and marketed under their regional name. These regional varieties are trademarked names
with the rights owned by Ethiopia.

6.3.1.2 ETHIOPIAN COFFEE SPECIALITIES

YIRGACHEFFE

It grows at an elevation of 1500 to 2200 meters above sea level in the southern Ethiopia. The
washed Yrigachefe is one of the best highland growth coffees it has fine acidity, body and flavor.

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Sidamo

It grows at an elevation of 1400 to 2200 meters above sea level on the slopes of the mountain
shoulders of the Rift valley. Natural (Sundried) and washed coffee that its distinct inherent
qualities of balanced acidity and body and good flavor is the uniqueness of Sidamo coffee.

It is very likely that in and around this region is where coffee had its origins. Sidamo coffee is
well-balanced with cupping notes exhibiting berries and citrus with complex acidity. The coffee
hails from the province of Sidamo in the Ethiopian highlands at elevations from 1,500 up to 2,200
meters above sea level. At these elevations the coffee beans can be qualified as “Strictly High
Grown” (SHG). Here the Ethiopian coffees grow more slowly and therefore have more time to
absorb nutrients and develop more robust flavors based on the local climate and soil conditions.
The most distinctive flavour notes found in all Sidamo coffees are lemon and citrus with bright
crisp acidity. Sidamo coffee includes Yirgachefe Coffee and Guji Coffee. Both coffee types are
very high quality.

LIMU COFFEE

It grows at elevation of 1400 to 2000 meters above sea level. A wet processed coffee, deeply
dimensioned nut toned aroma; well balanced of good acidity and body; good fine quality, winey
spicy flavor is the attraction this coffee.

LIMU

The attraction to Limu is the good fine quality, winery and spicy flavors.

Coffee is said to have gotten its name from the Ethiopian region of Kaffa, where this coffee is
produced. A natural or sun dried coffee; fair light medium acidity, good heavy body, fair average
quality; hard balanced cup flavor. Djimma coffee has a hint of nut toned flavor and pleasant after
taste.

LAKEMPTI

It is produced in Western Ethiopia mainly known for pleasant fruity flavor and bold bean size. It
is greenish to brownish in color with good acidity and body.

Genika

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"Ethiopia Genika" is a type of Arabica coffee of single origin grown exclusively in the Bench Maji
Zone of Ethiopia. Like most African coffees, Ethiopia Guraferda features a small and greyish bean,
yet is valued for its deep, spice and wine or chocolate-like taste and floral aroma.

Harar

It is produced in the Eastern highlands. Hararcoffeeis generally along berry with pointed ends. It
is grayish to greenish in color with medium to light acidity. Its liquor quality is of a typical mocha
flavor and aroma.

Harar is in the Eastern highlands of Ethiopia. It is one of the oldest coffee beans still produced and
is known for its distinctive fruity, wine flavour. The shells of the coffee bean are used in a tea
called hasher-qahwa. The bean is medium in size with a greenish-yellowish color. It has medium
acidity and full body and a distinctive mocha flavor. Harar is a dry processed coffee bean with
sorting and processing done almost entirely by hand. Though processing is done by hand, the
laborers are extremely knowledgeable of how each bean is categorized.

FACILITIES

BARKUMA has established modern coffee cleaning and storage plant in 30,000 sq meters of land.
The plant is equipped with modern PINHALENSE coffee processing machines and Buhler Z+
color sorter. The machine has the capacity of processing 6 tons per hour. All the processing jobs
are mechanical and electronic including final hand picking on conveyor belts. The six stores of the
plant have a capacity of accommodating about 15,000 metric tons of coffee at a time. The
warehouses are clean, with enough lighting, and ventilation system, which are very ideal for
keeping the quality of the coffee.

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 COFFEE LIQUIRING LABORATORY

BARKUMA is one of among the few who own modern coffee liquoring laboratory. The
laboratory is well equipped by

- Two Product Coffee Roasting Machines

- Two Product Coffee Grinding Machines
- Sensitive Scales
- Moisture Measuring Meter.

Our coffee liquoring laboratory intensively checks the quality of all the arrival and exportable
coffee.

6.3.1.1.3 COMPANY SALES CONDITION

We export all types of Ethiopian Green Coffee Bean Natural (Sun dried) and Washed

I. Natural /Sun-dried Coffee Export

Djimmah Grade 4 and 5

Sidamo Grade 4

Ghimbi Grade 4 and 5

Lekempti Grade 4 and 5

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Harar Grade 5

II. Washed Coffee Export

Yirgacheffe Grade 2

Sidamo Grade 2

Teppi Grade 2

Bebeka Grade 2

UG Quality

Other special blends of natural (sun dried) and washed coffee as per our customer’s requirement.

BarkumaDoka Trading plc deal exclusively in green coffee, grown in the southern states of
ethiopia around yirgacheffe, guji , sidamo … and one-hundred percent Arabica. Beans in
parchment are purchased directly from growers and are de-husked and packaged into 60kg , 30
kgs and 50kgs as per our partners request sacks in the Barkumadoka plant. The final product is
suitable for sale and exportation.

THE FLAVOUR PROFILE OF ETHIOPIAN BEANS: WHAT TO EXPECT

Coffee from Ethiopia is known for its bright fruited and floral flavors. These coffees typically have
a higher acidity, light to medium body and complex flavor notes.

The beans are either washed or naturally processed. The processing method used (2) has a huge
impact on the final taste of the coffee. When coffees are wet-processed, or washed, the fruit is
removed mechanically right away. These beans are characterized by their flavor clarity,
showcasing bright, complex notes. The final cup is very clean tasting.

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 HOW LARGE IS ETHIOPIAN COFFEE PRODUCTION TODAY?

Ethiopia is the world’s 5th largest coffee producing nation in the world, and the highest
producing nation in Africa.

Ethiopia is the 5th largest coffee-producing nation in the world, and the highest producing
nation in Africa. Ethiopians consume about half of their country’s coffee, exporting only 3.5
million bags out of the 6.5 million produced. Coffee is hugely important to these people.

Most of the coffee produced is by small farmers. Farmers are able to sell their coffee through
the Ethiopia Commodity Exchange, which was established by the government in 2008. The
ECX made it possible for through a standardized procedure.

ETHIOPIAN EXPORT TRADE BALANCE FROM 2009-2019

External balance on goods and services (formerly resource balance) equals exports of goods
and services minus imports of goods and services (previously nonfactor services). Data are
in current
U.S. dollars.

 Ethiopia trade balance for 2019 was $-12.41B, a 1.86% increase from 2018.
 Ethiopia trade balance for 2018 was $-12.18B, a 5.99% decline from 2017.
 Ethiopia trade balance for 2017 was $-12.96B, a 9.53% decline from 2016.
 Ethiopia trade balance for 2016 was $-14.32B, a 5.94% increase from 2015.

6.3.1.1.4 BENEFICIAL ATTRIBUTES OF COFFEE

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Caffeine blocks an inhibitory neurotransmitter in your brain, which causes a stimulant effect.
This improves energy levels, mood and various aspects of brain function
Coffee can help people feel less tired and increase energy levels (1Trusted Source, 2).
That’s because it contains a stimulant called caffeine — the most commonly consumed
psychoactive substance in the world (3).
After you drink coffee, the caffeine is absorbed into your bloodstream. From there, it travels to
your brain (4).
In the brain, caffeine blocks the inhibitory neurotransmitter adenosine.
When this happens, the amount of other neurotransmitters like norepinephrine and dopamine
increases, leading to enhanced firing of neurons (5Trusted Source, 6Trusted Source).
Several studies show that caffeine can increase fat burning and boost your metabolic rate.
-Caffeine is found in almost every commercial fat-burning supplement — and for good reason.
It’s one of the few natural substances proven to aid fat burning.
Several studies show that caffeine can boost your metabolic rate by 3–11% (10Trusted Source,
11Trusted Source).
Other studies indicate that caffeine can specifically increase fat burning by as much as 10% in
obese individuals and 29% in lean people (12Trusted Source).
However, it’s possible that these effects diminish in long-term coffee drinkers.
Can Drastically Improve Physical Performance
-Caffeine stimulates your nervous system, signaling fat cells to break down body fat (13Trusted
Source, 14).
But it also increases epinephrine (adrenaline) levels in your blood (15Trusted Source, 16Trusted
Source).
This is the fight-or-flight hormone, which prepares your body for intense physical exertion.
Caffeine breaks down body fat, making free fatty acids available as fuel (17Trusted Source, 18).
Given these effects, it’s unsurprising that caffeine can improve physical performance by 11–
12%, on average (20Trusted Source, 29Trusted Source).
Therefore, it makes sense to have a strong cup of coffee about half an hour before you head to
the gym.
Coffee contains several important nutrients, including riboflavin, pantothenic acid, manganese,
potassium, magnesium and niacin.

Riboflavin (vitamin B2): 11% of the Reference Daily Intake (RDI).

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Pantothenic acid (vitamin B5): 6% of the RDI.

Manganese and potassium: 3% of the RDI.

Magnesium and niacin (vitamin B3): 2% of the RDI.

May Lower Your Risk of Type 2 Diabetes

Type 2 diabetes is a major health problem, currently affecting millions of people worldwide.
It’s characterized by elevated blood sugar levels caused by insulin resistance or a reduced ability
to secrete insulin.
For some reason, coffee drinkers have a significantly reduced risk of type 2 diabetes.
Studies observe that people who drink the most coffee have a 23–50% lower risk of getting this
disease. One study showed a reduction as high as 67% (22, 23Trusted Source, 24Trusted Source,
25, 26).
According to a large review of 18 studies in a total of 457,922 people, each daily cup of coffee
was associated with a 7% reduced risk of type 2 diabetes
May Protect You From Alzheimer’s Disease and Dementia
Alzheimer’s disease is the most common neurodegenerative disease and the leading cause of
dementia worldwide.
This condition usually affects people over 65, and there is no known cure.
However, there are several things you can do to prevent the disease from occurring in the first
place.
This includes the usual suspects like eating healthy and exercising, but drinking coffee may be
incredibly effective as well.
Several studies show that coffee drinkers have up to a 65% lower risk of Alzheimer’s disease
(28Trusted Source, 29Trusted Source).
May Lower Your Risk of Parkinson’s
-Parkinson’s disease is the second most common neurodegenerative condition, right behind
Alzheimer’s.
It’s caused by the death of dopamine-generating neurons in your brain.
As with Alzheimer’s, there is no known cure, which makes it that much more important to focus
on prevention.

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Studies show that coffee drinkers have a much lower risk of Parkinson’s disease, with a risk
reduction ranging from 32–60% (30Trusted Source, 31Trusted Source, 32Trusted Source,
33Trusted Source).
In this case, the caffeine itself appears to be beneficial, as people who drink decaf don’t have a
lower risk of Parkinson’s (34Trusted Source).
May Protect Your Liver
-Your liver is an amazing organ that carries out hundreds of important functions.
Several common diseases primarily affect the liver, including hepatitis, fatty liver disease and
many others.
Many of these conditions can lead to cirrhosis, in which your liver is largely replaced by scar
tissue.
Interestingly, coffee may protect against cirrhosis — people who drink 4 or more cups per day
have up to an 80% lower risk
Can Fight Depression and Make You Happier
-Your liver is an amazing organ that carries out hundreds of important functions.
Several common diseases primarily affect the liver, including hepatitis, fatty liver disease and
many others.
Many of these conditions can lead to cirrhosis, in which your liver is largely replaced by scar
tissue.

Interestingly, coffee may protect against cirrhosis — people who drink 4 or more cups per day
have up to an 80% lower risk
May Lower Risk of Certain Types of Cancer
-Cancer is one of the world’s leading causes of death. It is characterized by uncontrolled cell
growth in your body.
Coffee appears to be protective against two types of cancer: liver and colorectal cancer.
Liver cancer is the third leading cause of cancer death in the world, while colorectal cancer ranks
fourth (40Trusted Source).
Studies show that coffee drinkers have up to a 40% lower risk of liver cancer (41, 42Trusted
Source).
Similarly, one study in 489,706 people found that those who drank 4–5 cups of coffee per day
had a 15% lower risk of colorectal cancer

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 Doesn’t Cause Heart Disease and May Lower Stroke Risk
-It’s often claimed that caffeine can increase your blood pressure.
This is true, but with a rise of only 3–4 mm/Hg, the effect is small and usually
dissipates if you drink coffee regularly (44Trusted Source, 45Trusted Source).
However, it may persist in some people, so keep that in mind if you have elevated
blood pressure (46Trusted Source, 47).
That being said, studies don’t support the idea that coffee raises your risk of
heart disease (48Trusted Source, 49).
On the contrary, there is some evidence that women who drink coffee have a reduced
risk (50). Some studies also show that coffee drinkers have a 20% lower risk of
stroke

6.3.1.1.5 WOMEN IN OUR COMPANY

We believe that the power of women are very important to be more effective and be
successful in every aspect that they are participating within our out-grower scheme
projects. In the Guji tradition most of the agricultural practices like picking cherry,
weeding, ploughing, etc. and other household activities are done by women but they
did not have the right to decide on the incomes coming from the coffee. Men took the
lion share to make decision over the incomes.

Since women are the base and good foundation for every success, we are giving them
a special attention and place in our company. Out of the total farmers that are registered
to work with us on out-grower scheme, 30% of the members are women. Our aim is
supporting them in different community owned projects and enhancing, capacitating
them by different trainings to minimize gender violence in the area.

ORGANZATIONAL CHART

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BARKUMA DOKA TRADING PLC has been registered & established under the Ethiopian law
and Engaged in the export of the Ethiopian Green Arabica Coffee, Sesame Seeds, Ethiopian
Different Beans, Oil Seeds & Pulses word wide. The company has stronger Financial Resources,
as well as performances, and has the experience working with different domestic banks, (Working
with more than 10 private banks: Dashen Bank S.C, Awash International Bank S.C., Abay Bank
S.C., Bunna International Bank S.C., Zemen bank S.C., Debub Global Bank S.C., Wegagen Bank
S.C., Bank Of Abyssinia S.C and with one of the most popular & Leading public Bank called
Commercial Bank of Ethiopia). Our company is a shareholder of MODEM TRADING PLC,
Modem Trading PLC has its own Seat at ECX. BarkumaDoka Trading Plc also has a share from
the newly established bank called Amhara Bank S.C.

Understanding our responsibility in sustainable coffee and other Agricultural productions; the
company is among the first to get involved on a joint approach for the sustainability of coffee &
other agricultural products by building on the three pillar ideas of Economic, Social and
environmental aspects of the small holders who are responsible for the majority of coffee produced
in the country. The project has brought farmers and the exporter together in a special relationship
that made a noticeable difference in the lives of the farming community.

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The company has worked in the domestic coffee trade for the last six years that boosted
commitment of the founder to go to the international market since 2012.

BARKUMA DOKA TRADING PLC have been member of Ethiopian Coffee Exporters
Association(ECEA)and member of Ethiopian Pulses, Oil Seeds and Spices Processors Exporters
Association(EPOSPEA) since 2012.

The company has the potential to supply washed and natural Arabica Specialty coffee to all over
the world. The company has capable export traders including Licensed Q Graders to handle the
qualities in reliable and honest manner.

The company has also its own two washing & Dry Mill stations found in Oromia regional state,
Guji Zone, Dimtu District/Woreda HAMBELLA Area and in KelemWellega Zone Anfilo
District/Woreda. The company also planning to own the coffee plantation in Oromia Regional
State, Guji Zone Hambella area.

6.3.1.1.6 FINANCIAL RESOURCES

Pre Shipment Finance

Pre Shipment finance –Its provided when our company needs funds before the shipment of
products or goods. Funds are required for purchasing coffees, processing of raw materials into
finished goods, packaging goods etc.

Packing Credit :we also avail pre-shipment finance from your financier against an export order
received from the importer in the form of Packing Credit. Once the funds are received from the
overseas buyer, the concerned export packing credit amount will be adjusted and loan will be
closed against that order.

Business Loan :we utilize a loan to purchase coffee or to undertake the manufacturing of your
product.

21
Post Shipment Finance

After we shipped the products and raised an invoice from the importer, we will see through the
credit period until we receive payment from our buyer. Obviously , we will have working capital
for this period to fulfill other orders. This can be resolved with post shipment finance from the
following sources:

Bill Discounting and Invoice Factoring :we approach our bank or a financial institution and
present our invoice to them for faster liquidation. The banker or the financial institution could
purchase, collect, or even discount the bill.

Export Finance Process

Benefits of Export Finance

Export finance against the collection of bills : Banks generally agree to finance export bills
which are repaid by guaranteeing companies in case of default. These lenders provide financial
support of around 90% of the FOB (freight-on-board) value of the export.

Letter of Credit Discounting :Banks are often ready to finance against Letter of Credit (LC) as
there is an inborn security in an confirmed LC that the issuing bank will make the payment in
case of default.

supplier's Credit & Buyer's Credit :There are also two distinct forms of financing you can tap
- supplier’s credit, where the exporter’s bank finances the exporter with the full amount of the
invoice while the importer can make payment in instalments to the exporter’s banker; and
buyer’s credit, where the importer is given credit under the line of credit by your banker, thus
facilitating your export transaction.

Export Finance Benefits from Government

Apart from these sources, the government can also be an important source of finance us, through
export benefits that you stand to earn. Financial assistance by the government and its agencies
includes measures like an advance authorization scheme which waives import duty if the goods
are used as inputs for export products; duty drawback schemes which refund duties and taxes

22
paid for inputs to exporters; for electronic products, a zero-duty export promotion capital goods
scheme available on the import of capital goods; and, the post-export EPCG Duty Credit Scrip
Scheme which enables exporters to claim a refund on duties paid to customs officials.

Who Can Provide Export Finance in to our company

There are different banks, non-banking financial corporations, and foreign trade-specific lenders
that offer financial assistance to exporters like you.

National bank of Ethiopia- provides buyer’s credit, corporate banking products, lines of credit,
project-based finance, etc.

Banks, including nationalized banks, private sector banks, foreign banks, regional rural banks,
certain cooperative banks, etc. all provide financing. Their services may include pre-shipment or
post-shipment finance, lines of credit, foreign currency loans, advances against bills sent on
collection/deemed exports/undrawn balance, etc. Of course, not all banks/branches may offer
export specific products – be sure to study your bank’s offerings thoroughly before going ahead

Non-banking financial institutions can also offer one or more export-specific financial services
like bill discounting, factoring, working capital loan, buyer loan, lines of credit, etc.

BANKS

A logical first step if you’re seeking to finance short-term export sales is to approach the local
commercial bank our company already uses. The bank will be familiar with your financial
standing, credit need, repayment record, and ability to perform. It may also have a section
dedicated to international business.

The responsibility for repaying a working capital loan ordinarily rests with us, the seller, even if
our customers fails to pay. In some cases, especially when we ship capital goods, we request the
commercial bank to make medium-term loans directly to the foreign buyer to finance the sale.
We work with our bank to deal with the risks of exporting in several ways, including by seeking
loan backing and/or guarantees by the national bank of ethiopia and Small Business
Administration, or by using various arrangements or instruments such as discounting and
banker’s acceptances.

Export Intermediaries

23
There are many export intermediaries, which provide short-term financing, or they may simply
purchase the goods to be exported directly from the manufacturer, thus eliminating both the risks
to the manufacturer that are associated with the export transaction and the need for financing.

OUR TRADE ORGANIZATIONS

1. Ethiopian Women Exporters' Association

Ethiopian Women Exporters’ Association is an organization supporting the export activities of

its 40 member companies. The association evolved from Ethiopian Women Exporter's Forum

2. The Ethiopian Institute of Agricultural Research (EIAR) has evolved through several
stages since its initiation during the late 1940s, following the establishment of
agricultural and technical school of Ambo and Jimma. Until the mid-1960s the Imperial
College of Agricultural and Mechanical Arts—now Haramaya University—with its
Agricultural Experiment Station at Bishoftu—now Bishoftu Research Center—was the
major research entity. The establishment of the then Institute of Agricultural Research
(IAR) in 1966 saw the first nationally coordinated agricultural research system in
Ethiopia.

The EIAR is a Federal Agricultural Research Institutes. EIAR is responsible for the
running of federal research centers, and Regional research Institutes are administered by
the Regional governments. In addition to conducting research at its federal centers, EIAR
is charged with the responsibility for providing the overall coordination of agricultural
research countrywide, and advising Government on agricultural research policy
formulation.

Currently, the EIAR comprise 17 research centers and sites located across various agro-
ecological zones. The research centers have a mandate to coordinate different national
commodities. Some of the research centers and sites have one or more sub-centers and
testing sites, for example, the Essential Oils Research Center
3. The Ethiopian Horticulture Producer Exporters Association is a horticultural association
based in Ethiopia. Chaired by TsegayeAbebe, it was established in 2002 to promote the
export horticulture and floriculture sector in Ethiopia.

24
The association now has over 80 members and its management is carried out by a Board of five
members elected by the General Assembly.

BARKUMA DOKA MEMBERSHIP:

Ethiopian Chamber of Commerce- The concept of Chamber of Commerce was introduced to

Ethiopia for the first time in 1943. The need for its establishment basically emanated from the
economic crisis occurred during that time. The establishment of the Chamber of Commerce was
seen as a solution to address the distribution of scarce commodities such as cotton, yarn, and
woolen products. Members of the Chamber of Commerce were allowed to distribute those scarce
commodities to stabilize the market.

Cognizant to these the Government issued Charter No. 90/47 in 1947 in a bid to establishing the
Chamber as a legally recognized institution. This was the turning point for the establishment of
an apex organization of the private sector in the country. The Charter clearly defined the roles
and functions of the Chamber and stipulated membership to be mandatory.

A cursory investigation of some documents indicates that the Chamber had good Government
support with patronage at the highest political level. In 1959, the Government as part of its
endeavors to strengthen the Chamber provided a plot of land on which the current a seven-story
Head Quarters building was constructed. The construction of the building was also facilitated by
the Government. The National Chamber had then branches in Asmara, Diredawa, Gondar,
Jimma and Nazareth.

Following the change of Government in 1974 proclamation No. 148/74 was enacted that
declared membership of business entities mandatory and restructured the Chamber in line with
the command economic policy adopted by the then administration.

The Chambers’ activities during this period were focused mainly on promoting export trade,
participating in international trade fairs, conducting research on trade constraints and establishing
relations with other chambers.

In 2003, the incumbent Government promulgated Proclamation No. 341/2003 with a view to
reorganizing Chambers of Commerce in line with the free market economic policy and the
Government’s Industrial Development Strategy (IDS) of the nation. Accordingly, the Ethiopian

25
Chamber of Commerce has been restructured and rechristened the Ethiopian Chamber of
Commerce and Sectoral Associations in 2007.

The Ethiopian Chamber of Commerce and Sectoral Associations (ECCSA) is an apex

organization of Chambers and Sectoral Associations in Ethiopia. It has eighteen members
including nine Regional Chambers of Commerce and Sectoral Associations, two City Chambers
of Commerce and Sectoral Associations, one National Chamber of Sectoral Associations and six
Sectoral Associations organized at national level.

Ethiopian Coffee Exporter Association-

Ethiopian Coffee Exporters Association (ECEA) is one of the prominent business Associations
in the country. The Association was first established in 1969 aimed at encouraging the
production of quality coffee; promoting coffee export globally; and collectively resolve problems
members encounter in their business operations.

ECEA provides the following major services that include, among others :-

Coordinate coffee exporters aimed at securing the utmost benefit by increasing both the quality
and quantity of coffee export;

Keep members informed with daily international coffee markets price;

Undertake promotional activities to increase both the volume and average unit price of coffee
export;

Provide trainings and hold seminars on coffee marketing;

Aware members on government policies and regulations adopted that are directly related with
the sector; and

Play conciliatory role on conflicts that arise among members of the Association and between
Association members and the government. As well as between our member/s and customers.

ECEA has 258 members as of June/2020 that account over 85% and 90% of the country’s coffee
export share in value and volume respectively.

26
The Association is a member of Specialty Coffee Association (SCA), Specialty Coffee
Association of Japan (SCAJ) and African Fine Coffee Association (AFCA).

The Association, in line with the duties and responsibilities it is entrusted with aims at boosting
the volume of coffee export in the global market. Accordingly, ECEA has set the following
VISION, MISSION and VALUES .

East African Fine Coffee Association (EAPCA)-Founded in July 2000, the African Fine
Coffees Association (AFCA) is a regional non profit, non political, member-driven association
representing coffee sectors in 11 member countries.

The Secretariat is hosted in Kampala, Uganda.

AFCA members include both private and public sector coffee stakeholders including producers,
exporters, international importers, roasters, policy makers, transporters and trade representatives.
AFCA has an 11-member board of directors (representing each of the AFCA country
membership) and 12 full-time employees at its headquarters in Kampala.AFCAhas revised its
strategic plan; click on the thumbnail to open/download the Strategic Plan:

INTERMEDIARY MEMBER OF ETHIOPIAN COMMODITY EXCHANGE-The Ethiopia

Commodity Exchange is a commodities exchange established April 2008 in Ethiopia.IT IS is a
national multi-commodity exchange in Ethiopia that brings together buyers and sellers of
agricultural commodities. Participants on the ECX trade spot contracts that standardize the
quality, quantity, payment, and delivery of agricultural goods.

- The Ethiopian Commodity Exchange (ECX) is designed to be a marketplace where buyers and
sellers meet to trade, assured of quality, delivery and payment ......It will enhance market
efficiency by operating a trading system where buyers and sellers use standardized contracts.

7. EXPORT DOCUMENTATION AND PROCEDURES

Exporters should seriously consider having the freight forwarder handle the formidable amount
of documentation that exporting requires; freight forwarders are specialists in this process. The
following documents are commonly used in exporting; which of them are actually used in each

27
case depends on the requirements of both our government and the government of the importing
country.

1. Commercial invoice

2. Bill of lading

3. Consular invoice

4. Certificate of origin

5. Inspection certification

6. Dock receipt and warehouse receipt

7. Destination control statement

8. Insurance certificate

9. Export license

10. Export packing list

STEP1: Enquiry :

The starting point for any Export Transaction is an enquiry.

An enquiry for product should, inter alia, specify the following details or provide the following
data

Size details - Std. or oversize or undersize

Drawing, if available

Sample, if possible

Quantity required

Delivery schedule

Is the price required on FOB or C& F or CIF basis

28
Mode of Dispatch - Sea, air or Sea/air

Mode of Packing

Terms of Payment that would be acceptable to the Buyer - If the buyer proposes to open any
Letter of Credit, any specific requirement to be complied with by the Exporter

Is there any requirement of Pre-shipment inspection and if so, by which agency

Any Certificate of Origin required - If so, from what agency.

STEP 2: - Proformageneration :

After studying the enquiry in detail, the exporter - be it Manufacturer Exporter or Merchant
Exporter - will provide a Proforma Invoice to the Buyer.

STEP 3: Order placement :

If the offer is acceptable to the Buyer in terms of price, delivery and payment terms, the Buyer
will then place an order on the Exporter, giving as much data as possible in terms of
specifications, Part No. Quantity etc. (No standard format is required for such a purchase order)

STEP 4: Order acceptance :

It is advisable that the Exporter immediately acknowledges receipt of the order, giving a
schedule for the delivery committed.

STEP 5: Goods readiness &documentation :

Once the goods are ready duly packed in Export worthy cases/cartons (depending upon the mode
of despatch), the Invoice is prepared by the Exporter.

If the number of packages is more than one, a packing list is a must.

Even If the goods to be exported are excisable, no excise duty need be charged at the time of
Export, as export goods are exempt from Central Excise, but the AR4 procedure is to be
followed for claiming such an exemption.

Similarly, no Sales Tax also is payable for export of goods.

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STEP 6: Goods removal from works :

There are different procedures for removing Export consignments to the Port, following the AR4
procedure, but it would be advisable to get the consignment sealed by the Central Excise
authorities at the factory premises itself, so that open inspection by Customs authorities at the
Port can be avoided.

If export consignments are removed from the factory of manufacture, following the AR4
procedure, claiming exemption of excise duty, there is an obligation cast on the exporter to
provide proof of export to the Central Excise authorities

STEP 7: Documents for C & F agent :

The Exporter is expected to provide the following documents to the Clearing & Forwarding
Agents, who are entrusted with the task of shipping the consignments, either by air or by sea.

Invoice

Packing List

Declaration in Form SDF (to meet the requirements as per FERA) in duplicate.

AR4 - first and the second copy

Any other declarations, as required by Customs

On account of the introduction of Electronic Data Interchange (EDI) system for processing
shipping bills electronically at most of the locations - both for air or sea consignments - the C&F
Agents are required to file with Customs the shipping documents, through a particular format,
which will vary depending on the nature of the shipment. Broad categories of export shipments
are:

Under claim of Drawback of duty

Without claim of Drawback

Export by a 100% EOU

Under DEPB Scheme

3
0
STEP 8: Customs Clearance :

After assessment of the shipping bill and examination of the cargo by Customs (where required),
the export consignments are permitted by Customs for ultimate Export. This is what the
concerned Customs officials call the ‘LET EXPORT’ endorsement on the shipping bill.

STEP 9: Document Forwarding :

After completing the shipment formalities, the C & F Agents are expected to forward to the
Exporter the following documents:

Customs signed Export Invoice & Packing List

Duplicate of Form SDF

Exchange control copy of the Shipping Bill, processed electronically

AR4 (original duplicate) duly endorsed by Customs for having effected the Export

Bill of Lading or Airway bill, as the case may be.

STEP 10: Bills negotiation :

With these authenticated shipping documents, the Exporter will have to negotiate the relevant
export bill through authorized dealers of Reserve Bank, viz., Banks.

Under the Generalized System of Preference, imports from developing countries enjoy certain
duty concessions, for which the exporters in the developing countries are expected to furnish the
GSP Certificate of Origin to the Bankers, along with other shipping documents.

Broadly, payment terms can be:

DP Terms

DA Terms

Letter of Credit, payable at sight or payable at... days.

Step11: Bank to bank documents forwarding :

31
The negotiating Bank will scrutinize the shipping documents and forward them to the Banker of
the importer, to enable him clear the consignment.

It is expected of such authorized dealers of Reserve Bank to ensure receipt of export proceeds,
which factor has to be intimated to the Reserve Bank by means of periodical Returns.

STEP 12: Customs obligation discharge :

As indicated above, Exporters are also expected to provide proof of export to the Central Excise
authorities, on the basis of the Customs endorsements made on the reverse of AR4s and get their
obligation, on this score, discharged.

STEP 13: Receipt of Bank certificate :

Authorized dealers will issue Bank Certificates to the exporter, once the payment is received and
only with the issuance of the Bank Certificate, the export transaction becomes complete.

It is mandatory on the part of the Exporters to negotiate the shipping documents only through
authorized dealers of Reserve Bank, as only through such a system Reserve Bank can ensure
receipt of export proceeds for goods shipped out of this country.

Protecting Your Business Against Export Violations

Businesses that are already exporting or are planning to start exporting need to follow some basic
steps to ensure they are compliant with U.S. export regulations. While the following six steps are
by no means all inclusive, they should provide companies with a starting point for implementing
an export compliance plan.

7.1 REGULATORY COMPLIANCE

Our company follows the international regulatory compliance stages, which is

1. Properly Classify our Products

Being familiar with the Harmonized System (HS) or Schedule B codes used to classify products
for duty, quota and statistical purposes. However, exporters are often less familiar with the
requirement that they determine whether or not their products are controlled for export by the
Department of Commerce or the Department of State.

32
2. Determine if the Destination Country Requires an Export License

There are several reasons the Ethiopian government prevents exports to certain countries without
an export license. In the most extreme cases, the Ethiopian has placed embargoes on countries
like Iran and Syria for supporting terrorist activities. In other cases, the restricts companies and
individuals from exporting certain products to specific countries for reasons of national security,
nuclear nonproliferation, chemical and biological weapons, or several other reasons outlined in
the EAR.

3. Screen All Parties In Your Export Transaction

Theethiopian government, as well as several other governments and organizations like the
United Nations and the European Union, publish lists of restricted parties to whom you can't
export without a license. These restricted parties are individuals, businesses and other
organizations that have been identified as engaging in activities related to the proliferation of
weapons of mass destruction, known to be involved in terrorism or drug trafficking, or who have
had their export privileges suspended. These individuals, businesses or organizations could be
located within the Ethiopia.

4. Watch for Red Flags: Know How Your Product Will Be Used

5. Be Aware of Deemed Exports

6. Document Compliance

When small and medium-sized businesses become aware of their legal obligations as exporters,
often their first reaction is to try to avoid these responsibilities by hiring a freight forwarder or
another party to handle their exports. While there is absolutely nothing wrong with outsourcing
the export functions, companies must realize that they cannot outsource their liabilities.

8. INDUSTRY ANALYSIS

Coffee has been a growing industry for the past five years. The number of specialty roasters has
increased from a handful of well known companies to thousands of independent entities. There is
a constant struggle within this market to produce the best coffee and serve one or more niches
within the larger market. Ethiopian coffee producers and exporters have made great efforts to

33
improve agricultural techniques, processing methods, and distribution in order to better serve this
growing market. Demand for Ethiopian coffee is currently greater than supply.

Commodity Classification/Numbering System The Harmonized Commodity Description and

Coding System or Harmonized System (HS) is an internationally agreed-upon classification
system that is the basis for obtaining domestic and international trade and tariff information. HS
Codes are essentially the language of international trade, numerical codes that describe “what” is
being shipped to and from countries worldwide, and they form the basis upon which all modern
Customs management systems operate. The HS code assigns a 6-digit number to each product
that is traded internationally, and these 6 digits are used universally. Each country can assign, on
its own, four additional numbers, making the entire number 10 digits. Based on the above
product analysis, the following Foreign Trade Schedule B commodity classification was
identified on consultation with BarkumaDoka trading Plc :

Hs code Descriptions

090111 - green coffee beans

120190 - soya beans

07133190- greenmung beans

12074090- sesame seeds

Industry Classification

BarkumaDoka Trading Plc is related (verified) to the following national Bank of Ethiopia
Export and Import Numbers.

Export – HX2626

Import- HE16601

The agriculture sector has historically been the engine of the Ethiopian economy, but it has
recently given way to the expansion of the service sector.

8.1 Market Analysis Summary

34
Coffee is the first largest commodity market. Imports of Arabica coffee in the United States have
increased ninety-four percent in the past five years and consumption of coffee within Ethiopia
has seen similar increases. In addition, demand for green coffee is above the market clearing
level, and market price and crop yield estimates are at an all time high.

BarkumaDoka trading Plc sells its products to two permanent companies which their office held
in south korea and china. Upon researching available industry reports and reviewing market
research indicators with local Enterprise ,Commercial Service representatives, the following
buying industries were chosen as the focus of international market research for this planS

8.1 OUR BUYERS NEED AND WAN TS

- WE FIRST OUR OFFERF AND ITS POTENTIAL , most of our customers focusing on
the specialty segment , are always looking for unique coffees with specific flavor notes
from unique origins . so we offer specific characteristics of our coffees. Then we
understand how our offers differ from our local competitors, our main differentiating
factors and unique selling point. So barkuma doka buyers need
- Our coffee beans genetic profile and variety and potential volumes
- Product agro climatic context
- Its characteristics of post harvest practice
- Quality of coffee insured b y Ethiopian coffee and tea association
- Awards like cup of excellence
- On time delivery
- Having up to date and reliable data about our company
- Defining our unique selling point
- Never making claims that we cannot support
- Our participation in international trade affairs
- Preparing sample from where we are going to ship

8.2 Competition and Buying Patterns

The purchase decision for our customer is based on trust in our process and bean selection. We
have established relationships with our customers which extend beyond that of the buyer/seller.

35
The barkumadoka trading plc label means that the product has been chosen and prepared with the
highest quality standards in mind. Our beans are priced up to nine percent higher than similar
products. Our customers are willing to pay more for our product because they are familiar with us
and trust in the quality of our beans. This is the result of their success in the marketplace with our
product.

8.3 Local compition

In order to differentiate our product, coffee, which is a commodity, from the product offering of
competitors, all beans are guaranteed fresh and are shipped within seven days of preparation. In
addition all beans are sorted at ninety-five percent screen 18 and above compared to the industry
standard ninety percent screen of 17 and above. The beans shipped by Barkumadoka trading plc
are therefore larger than most and are guaranteed fresh. In addition, all of the farms from which
our company purchases coffee adhere to environmentally sound farming practices and avoid the
use of pesticides and chemicals in crop production.

There are approximately ten competitors who offer a product similar to ours. Our research
indicates that with the additional capacity we would become one of the top four, in terms of
quantity, providers. We have the advantage of established distribution channels and reputation.
In addition, improvements to our marketing efforts will further separate us from the larger
market and from our close competitors.

Our Main local Competitors

Ethiopia has more than 400 coffee exporters, 395 coffee farmers who directly export coffee, and
over 30 import-export companies who export coffee and use the foreign currency to import other
materials like vehicles and construction inputs. Ethiopia exports coffee to over 60 countries.

Place in world as coffee exporter (19/20): 8th

Sacks (60kg) exported annually (19/20): Approx. 3,921,000

Percentage of world coffee market: 3%

36
Other major agricultural exports: Sesame Seed, Legumes

Lucy Ethiopian Coffee Exporter BUNAROMA COFFEE EXPORTER

Heleph Coffee Exporter Wonberta Coffee Export
Cerealia Coffee | (ROMEL) Ethiopian Coffee Green Gold Ethiopia
Exporter
Mullege Coffee Export Pelican coffee exporter
ARDENT Coffee Export
Aleneadmasu import and export
Eagle Coffee Export EDN Ethiopian Coffee Export PLC

Estimated number of individuals relying on coffee for

Approx. 15 million
livelihood:

Typical Varieties Produced: Arabica: Native Heirloom Varieties

Key Coffee Regions: Sidamo, Limu, Yirgacheffe, Harrar&Djima

Typical Harvest Times: October – December

Typically Available: From February

37
 KP IMPEX TRADING PLC ( COFFEE Guji Coffee Export
EXPORTER)
TOP LOCAL COMPITITIVES OF BARKUMA DOKA PLC

8.4 GLOBAL COMPITATORS

CHARACTERSTICS Trade value in

million U.S.
dollars
BRAZIL 4584.8
SWITZERLAND 2506.4
GERMANY 2415.4
COLOMBIA 2363.17
VEITNAM 2218.82
ITALY 1743.9
BELGIUM 832.09
INDONESIA 883.12
HONDURAS 955.56
FRANCE 1235.72

9. TARGET – RICH MARKETS

Ethiopia's exports 2020 by country

Top export destinations of commodities from Ethiopia in 2020:

• China with a share of 8.94% (138 million US)

• Saudi Arabia with a share of 8.88% (137 million US)

• USA with a share of 7.84% (121 million US)

• United Arab Emirates with a share of 7.25% (112 million US)

38
 • Israel with a share of 5.91% (91 million US)

• Djibouti with a share of 4.63% (71 million US)

• Somalia with a share of 4.14% (64 million US)

• Vietnam with a share of 4.02% (62 million US)

• Germany with a share of 3.85% (59 million US)

• Japan with a share of 3.32% (51 million US)

FINAL TARGET MARKETS

The economy of Ethiopia is a mixed and transition economy with a large public sector. The
government of Ethiopia is in the process of privatizing many of the state-owned businesses and
moving toward a market economy.

So, barkuma doka top 3 final target markets are

- Asia 39.8% (of which China accounted for 22.3%),

- Europe 28.7% and

- Africa 20.9%.

9.1 PRICING STRUCTURE

Our company uses

- FOB
- CAD
- CNF
- LC PRICING /PAYMENT METHODS

39
 Sales Literature
Barkuma doka trading plc currently works with two importers in the china and south korea who
handle all of our shipments. Likewise, we have dealt with the same us wholesalers, for internal
sales, each year. Sales to this point have been handled through personal selling. Additional sales
literature will include a website, direct mail to specialty roasters and importers, and print
advertising in several trade publications including Coffee Times, a monthly publication which
targets American business dealing with issues relevant to the coffee industry.

Sourcing

Both the existing and the proposed facilities are ideally located in yirgacheffe, which is the
largest coffee producing state in ethiopia and beans produced in the region are of the highest
quality. With additional financing, we would be able to buy larger volumes at lower prices. We
now buy from one or more of six private growers or grower cooperatives. Contracts are secured
six months in advance of harvest.

10. GOVERING RULES ON EXPORT

- CUSTOMS REGULATION
Customs clearance time has been reduced to an average of less than 21 days, a fall from
more than 40 days in recent years. The Government of Ethiopia (GOE) is working toward
establishing an electronic single-window service delivery for international trade and one-
stop border posts at the Ethio-Kenya and Ethio-Djibouti borders. Several customs offices
have also been located inside industrial parks (IPs), facilitating customs processing for
exporting firms established in IPs. The Customs Proclamation No. 859/2014 has been
reformed under the Revised Kyoto Convention (RKC) and focuses more on facilitating
goods at the port than controlling licensed traders. The customs procedures allow
authorized importers to finalize customs procedures using minimal available
documentation and significantly reduced time.

The maximum number of days given to collect goods from a dry port is 15 days. Otherwise
20% of the tax amount will be charged as a penalty.

4
0
 - TRADE AGREEMENTS
Ethiopia originally signed a Treaty of Amity and Economic Relations with the United
States in 1951, which was updated in 1994. Ethiopia has no bilateral trade or investment
agreement with the United States. However, it is eligible for preferential access to the
U.S. market under the African Growth and Opportunity Act (AGOA). In 2015, Ethiopia
was approved for AGOA privilege extension for the coming 10 years until 2025.

Ethiopia is a signatory to the following trade agreements:

• Treaty Establishing the Common Market for Eastern and Southern Africa (COMESA)
(Kampala, 5 November 1993)
• Agreement Establishing Intergovernmental Authority on Development (IGAD)
(Nairobi, March 1996)
• African, Caribbean, and Pacific Group States (ACP)-European Union (EU) Economic
Partnership Agreement (Cotonou, 23 June 2000)
• At the continental level, Ethiopia has acceded to the African Continental Free Trade
Agreement (AfCFTA), which aim to create one common market of all countries on the
continent.
• Ethiopia has signed and ratified the Abuja Treaty that aims to establish an Africa
Economic Community among the continents 54 countries.

Ethiopia renewed its dormant WTO accession process through Working Party meetings at
the WTO Secretary in 2019 and early 2020. Ethiopia’s accession to the World Trade
Organization (WTO) has been underway since 2003, and in 2012 it submitted its goods
offer. The government of PM Abiy Ahmed has emphasized the goal of WTO accession,
however the timeline for completing the process remains unclear.

FOREIGN CURRENCY AND BANKING

EXPORTERS are, first, required to register an application for foreign exchange allocation
within the commercial banks. In the allocation of foreign currency a bank shall give priority to the
following import items and payments, among them, on first come first served basis;

41
  fuel, motor oil, lubricants and LGP gas

fertilizer

 agricultural inputs and machineries which include seeds and pesticides, irrigation
pumps, animal feeds, and machineries and equipments.,

 pharmaceutical product (medicine, laboratory equipments and reagents, and medical

equipments and appliances),

 factories’ requests for procurement of machineries, equipments, spare parts, raw

materials and accessories;

 import of nutritious food for babies

 spare part for construction machineries for own use construction companies whose
total value not exceeding USD 50,000

 educational materials (exercise book, ball pen, pencil and printing

papers) imports of chemicals

 profit and dividend transfer

 transfer of excess sales of foreign airlines

 sales from share and liquidation of companies by FDI

Despite the above, priorities a bank must sale foreign currency to its all other customer’s on the
basis of first come first served bases. However the importer has to lodge a request for foreign
currency only in one bank. Importers are prohibited to submit application for foreign currency in
more than one bank. Further, the importer must adhere to any provisions of proclamation,
regulation and directives. Any importer who fails to comply will be black listed from six month
up to two years.

On the other hand, the following goods are exempted from the registration procedure and are
granted on demands.

42
Foreign currency request from non-residents foreign currency and non-resident transferable birr
account;

Foreign currency accounts of nonresident Ethiopian and nonresident Ethiopian origin;

retention accounts;

forex request for all transactions set under the operation of forex bureau directives no.
FXD/17/2001;

invisible payments such as consultancy, commissioning, installation, and royalty fees,

payment of services and travel payment by non-residents non transferable account, communication
and other service payments, aviation services payments and associated costs, cargo handling,
freight and other associated costs, payments on exports freight and transit services;

other payments authorized by the NBE especially external debt payment obligations and
supplier’s credit; and

salary transfer of foreign nationals.

Retention and Utilization of Foreign Currency for Exporters

(Directive No. FXD/48/2017)

An exporter has a right to retain their foreign exchange earnings but only through retention
accounts. In plain word, an exporter can obtain the foreign currency which is paid to him by the
buyer, provided that he/she has a retention account in one of the banks authorized by the NBE.

Retention Accounts

There are two types of foreign exchange retention accounts (current accounts) which are
designated as “foreign exchange retention account A” and “foreign exchange retention account
B”. BARKUMA DOKA AS AN exporter with an Account A can retain 30% of the account
balances for an indefinite period of time. On the contrary, an with Account B can retain 70% of
the account balances for up to 28 days. After the 28 days, any balance will automatically be

43
 converted into local currency in the next working day by the customer’s bank using the prevalent
buying exchange rates.

WE give a written authority, which should clearly stipulate the type of account to be opened, for
the bank.

Local merchants or entities may also create a retention account, provided that they are authorized
by the NBE, to collect credit card/debit card/prepaid card/payments for goods and services they
sale; and cash notes for goods and services they sale such as hotels, duty free shops, airline ticket
offices and travel agents, tour operators, and shops operating at the airports on the airside.

Note that banks, which are authorized to operate retention accounts, are required to send to the
NBE the aggregate balances of foreign exchange held under retention account “A” and “B”.

Utilization of Retention Accounts

In relation to the Utilization of FXC Retention Accounts, Accounts A and B must be used to
finance direct business services related and current payments such as:.

11. Financial Plan

We want to finance growth through a combination of long-term debt and cash flow. Purchase of
the larger facility and equipment will require approximately eighty percent debt financing.
Additional technology will be primarily financed with cash-flow. Inventory turnover must
remain at or above four or we run the risk of backing up orders and jeopardizing our freshness
guarantees. We have had no problems with accounts receivable and we expect to maintain our
collection days at 30 with thirty percent of sales on credit.

In addition, we must achieve gross margins of thirty-five percent and hold operating costs no
more than sixty-five percent of sales.

The total investment requirement is estimated at about Birr 8,677,150.00 (or US 500,000), out
of which Birr 6,838,000.00 (US 330,000) is required for plant and machinery. BARKUMA

44
DOKA TRADING PLC revenues for 2019and 2020were 2,000,000 and 3,500,000 respectively.
Due to high capital investment, the first year of operation will require aline of credit of
1,300,000 divided into supplies of fixed investment and operating costs.The long-term debt is the
debt financing of 1,500,000. So the total debt for the first year will be 1,200,000 .

11.1 Break-even Analysis

The break-even analysis shows that Barkumadoka plc has sufficient sales strength to remain
viable. Our per month break-even point projections are detailed in the following table and chart.

Break-even Analysis

Monthly Units Break-even 10,000

Monthly Revenue Break-even 560,000

Assumptions:
Average Per-Unit Revenue 3000
Average Per-Unit Variable Cost 10,200
Estimated Monthly Fixed Cost 302,629

Important Assumptions

Important assumptions for this plan are found in the following table. These assumptions largely
determine the financial plan and require that we secure additional financing.

General Assumptions
Plan Month 1 2 3
Current Interest Rate 14.00% 14.00% 14.00%
Long-term Interest Rate 9.00% 9.00% 9.00%
Tax Rate 47.00% 47.00% 47.00%
Other 0 0 0

11.2 Key Financial Indicators

45
 The most important factor to barkumadokaplc anticipated growth is the procurement of
necessary financing. The size of the orders currently requested by importers are larger than what
can be produced given our present plant capacity.

The following chart shows changes in key financial indicators: sales, gross margin, operating
expenses, collection days, and inventory turnover. The growth in sales goes above thirty percent
in the first year, twenty percent in second, and back to thirty percent in year three after which it
will settle. We expect to increase gross margin but our projections show a decline in the first two
years following the purchase of the new facility. This is due to the facilities not being run at
maximum capacity. The projections for collection days and inventory turnover show that we
expect a decline in these indicators.

Pro Forma Profit and Loss

Sales 26,260,416 33,021,600 46,126,400
Direct Cost of Sales 21,242,400 26,712,000 37,312,000
Production Payroll 300,396 316,884 331,912
Other Costs of Sales 300,000 345,000 410,000
Total Cost of Sales 21,842,796 27,373,884 38,053,912

Gross Margin 4,417,620 5,647,716 8,072,488

Gross Margin % 16.82% 17.10% 17.50%

Operating Expenses

Sales and Marketing Expenses

Sales and Marketing Payroll 225,492 128,150 136,521
Advertising/Promotion 144,000 165,000 165,000
Travel 21,000 22,500 24,000
Other Sales and Marketing Expenses 24,000 26,500 28,500
Total Sales and Marketing Expenses 414,492 342,150 354,021
Sales and Marketing % 1.58% 1.04% 0.77%

General and Administrative Expenses

46
General and Administrative Payroll 119,400 130,228 173,377
Marketing/Promotion 0 0 0
Depreciation 216,000 216,000 216,000
Leased Equipment 50,400 50,400 50,400
Utilities 36,000 36,000 36,000
Insurance 72,000 75,000 78,000
Rent 305,250 300,000 300,000
Payroll Taxes 0 0 0
Other General and Administrative Expenses 0 0 0
Total General and Administrative Expenses 799,050 807,628 853,777
General and Administrative % 3.04% 2.45% 1.85%

Other Expenses:

Other Payroll 0 0 0
Consultants 18,000 24,000 30,000
Other Expenses 0 0 0
Total Other Expenses 18,000 24,000 30,000
Other % 0.07% 0.07% 0.07%

Total Operating Expenses 1,231,542 1,173,778 1,237,798

Profit Before Interest and Taxes 3,186,078 4,473,938 6,834,690

EBITDA 3,402,078 4,689,938 7,050,690
Interest Expense 269,166 238,449 225,191
Taxes Incurred 1,370,949 1,990,680 3,106,465

Net Profit 1,545,964 2,244,809 3,503,035

Net Profit/Sales 5.89% 6.80% 7.59%

11.3 Projected Cash Flow

Barkumadokaplc expects to manage cash flow over the next three years with the assistance of a
loan supported by the national bank of ethiopia. This financing assistance is required to provide

47
the working capital to meet the current needs for the construction of the new production facility
and additional personnel, distribution costs, and other related expense.

Pro Forma Cash Flow

Cash Received

Cash from Operations

Cash Sales 26,260,416 33,021,600 46,126,400

Subtotal Cash from
26,260,416 33,021,600 46,126,400
Operations

Additional Cash Received

Sales Tax, VAT,
0 0 0
HST/GST Received
New Current Borrowing 0 0 0
New Other Liabilities
0 0 0
(interest-free)
New Long-term Liabilities 2,700,000 0 0
Sales of Other Current
0 0 0
Assets
Sales of Long-term Assets 0 0 0
New Investment Received 0 650,000 650,000
Subtotal Cash Received 28,960,416 33,671,600 46,776,400

Expenditures 1999 2000 2001

Expenditures from
Operations
Cash Spending 645,288 575,262 641,810
Bill Payments 23,678,478 29,770,693 41,735,934
Subtotal Spent on
24,323,766 30,345,955 42,377,744
Operations

48
Additional Cash Spent
Sales Tax, VAT,
0 0 0
HST/GST Paid Out
Principal Repayment of
57,996 0 0
Current Borrowing
Other Liabilities Principal
0 0 0
Repayment
Long-term Liabilities
305,250 294,636 0
Principal Repayment
Purchase Other Current
60,000 75,000 85,000
Assets
Purchase Long-term
2,700,000 0 0
Assets
Dividends 0 0 0
Subtotal Cash Spent 27,447,012 30,715,591 42,462,744

Net Cash Flow 1,513,404 2,956,009 4,313,656

9,777,329
Cash Balance 2,507,664 5,463,673

Projected Balance Sheet

As shown in the balance sheet in the following table, our net will grow quickly by the end of
2020 and to continue steadily through the end of the plan period. The monthly projections are in
the appendix.

Pro Forma Balance Sheet

Assets

Current Assets
Cash 2,507,664 5,463,673 9,777,329
Inventory 1,958,880 2,463,262 3,440,747

49
Other Current Assets 303,936 378,936 463,936
Total Current Assets 4,770,480 8,305,872 13,682,013

Long-term Assets
Long-term Assets 3,221,650 3,221,650 3,221,650
Accumulated Depreciation 316,000 532,000 748,000
Total Long-term Assets 2,905,650 2,689,650 2,473,650
Total Assets 7,676,130 10,995,522 16,155,663

Liabilities and Capital 1999 2000 2001

Current Liabilities
Accounts Payable 1,786,801 2,506,020 3,513,127
Current Borrowing 4 4 4
Other Current Liabilities 0 0 0
Subtotal Current Liabilities 1,786,805 2,506,024 3,513,131

Long-term Liabilities 2,796,750 2,502,114 2,502,114

Total Liabilities 4,583,555 5,008,138 6,015,245

Paid-in Capital 525,000 1,175,000 1,825,000

Retained Earnings 1,021,611 2,567,575 4,812,383
Earnings 1,545,964 2,244,809 3,503,035
Total Capital 3,092,575 5,987,383 10,140,418
Total Liabilities and Capital 7,676,130 10,995,522 16,155,663

Net Worth 3,092,575 5,987,383 10,140,418

BARKUMA DOKA PROFIT AND LOSS

Mar'20 Mar'19 Mar'18 Mar'17 Mar'16

12Months 12Months 12Months 12Months 12Months
INCOME:

5
0
Sales Turnover 1500.75 2038.89 2186.40 2016.88 1798.29
Excise Duty .00 .00 .00 .70 .00
NET SALES 1500.75 2038.89 2186.40 2016.18 1798.29
Other Income 12.5979 7.1980 12.4687 11.7964 7.7430
TOTAL INCOME 1513.34 2046.09 2198.87 2027.98 1806.03
EXPENDITURE:
Manufacturing Expenses .05 .06 .07 .09 .09
Material Consumed 1387.34 1834.47 2011.16 1947.59 1670.28
Personal Expenses 5.24 5.22 5.07 5.25 4.37
Selling Expenses .00 .00 .00 .00 .14
Administrative Expenses 99.66 144.69 145.29 41.19 102.41
Expenses Capitalised .00 .00 .00 .00 .00
Provisions Made .00 .00 .00 .00 .00
TOTAL EXPENDITURE 1492.30 1984.45 2161.60 1994.12 1777.29
Operating Profit 8.45 54.44 24.80 22.06 21.00
EBITDA 21.05 61.64 37.27 33.86 28.75
Depreciation 1.27 .60 .47 .60 .71
Other Write-offs .00 .00 .00 .00 .00
EBIT 19.78 61.04 36.80 33.26 28.04
Interest 2.37 6.98 9.52 11.24 8.75
EBT 17.41 54.06 27.28 22.02 19.29
Taxes 6.13 18.18 8.88 7.58 6.22
Profit and Loss for the Year 11.28 35.88 18.40 14.45 13.07
Non Recurring Items .00 .00 .10 .00 .00
Other Non Cash Adjustments.00 .00 .00 .00 .00
Other Adjustments .00 .00 -.10 .00 .00
REPORTED PAT 11.28 35.88 18.40 14.45 13.07
KEY ITEMS
Preference Dividend .00 .00 .00 .00 .00
Equity Dividend 2.13 2.13 1.64 .00 1.60
Equity Dividend (%) 10.00 9.97 7.70 .00 9.77
Shares in Issue (Lakhs) 2132.59 2132.59 213.26 164.26 164.26

51
EPS - Annualised (Rs) .53 1.68 8.63 8.79 7.96
Rs (in Crores)
Cash Flow
Rs (in USD)
Particulars Mar'20 Mar'19 Mar'18 Mar'17 Mar'16
Profit Before Tax 17.41 54.06 27.28 22.02 19.29
Net Cash Flow from Operating Activity 80.53 57.27 45.87 2.69 .00
Net Cash Used in Investing Activity -54.96 -17.15 3.24 4.82 .00
Net Cash Used in Financing Activity -26.44 -29.83 -43.70 -16.54 .00
Net Inc/Dec In Cash and Cash Equivalent -.87 10.28 5.41 -9.03 9.91
Cash and Cash Equivalent - Beginning of the Year 16.30 6.02 .61 36.16 25.49
Cash and Cash Equivalent - End of the Year 15.43 16.30 6.02 27.13 35.40
BalanceSheet – BARKUMA DOKA TRADING PLC.
Rs (in USDs)
Particulars Mar'20 Mar'19 Mar'18 Mar'17 Mar'16
12
Liabilities 12 Months 12 Month s 12 Months 12 Months
Months
Share Capital 21.33 21.33 21.33 16.43 16.43
Reserves & Surplus 191.10 182.46 148.71 84.21 72.41
Net Worth 212.43 203.78 170.03 100.63 88.84
Secured Loan 2.91 25.00 36.89 130.68 131.52
Unsecured Loan .00 .00 8.82 .00 4.47
TOTAL LIABILITIES 215.33 228.78 215.74 231.31 224.82
Assets
Gross Block 9.66 3.65 3.21 3.19 10.51
(-) Acc. Depreciation 2.47 1.21 1.00 .56 7.43
Net Block 7.19 2.44 2.20 2.63 3.08
Capital Work in Progress .00 .00 .00 .00 .00
Investments 77.80 22.27 1.06 1.06 1.10
Inventories 34.09 36.04 137.80 92.30 61.92
Sundry Debtors 753.67 671.45 156.10 378.67 262.72
Cash and Bank 53.44 41.17 30.97 27.13 36.16

52
Loans and Advances 46.49 33.58 54.04 29.13 87.34
Total Current Assets 887.69 782.25 378.91 527.23 448.15
Current Liabilities 756.64 575.03 164.79 292.00 223.66
Provisions .71 3.15 1.63 7.60 3.86
Total Current Liabilities 757.34 578.18 166.42 299.60 227.51
NET CURRENT
130.34 204.06 212.48 227.63 220.64
ASSETS
Misc. Expenses .00 .00 .00 .00 .00
TOTAL
215.33 228.78 215.74 231.31 224.82
ASSETS(A+B+C+D+E)

Quarterly – BARKUMA DOKA TRADING PLC

Rs (in USD)
Dec'20 Sep'20 Jun'20 Mar'20 Dec'19
INCOME
Net Sales Turnover 75.45 133.31 408.90 477.15 507.55
Other Income 1.01 -.18 1.20 1.36 2.23
Total Income 76.46 133.12 410.10 478.51 509.78
EXPENSES
Stock Adjustments 48.80 21.92 -47.76 -25.90 -4.62
Raw Material Consumed .00 .00 .00 .00 .00
Power and Fuel .00 .00 .00 .00 .00
Employee Expenses .89 .95 1.17 1.43 1.28
Administration and Selling Expenses .00 .00 .00 .00 .00
Research and Development Expenses.00 .00 .00 .00 .00
Expenses Capitalised .00 .00 .00 .00 .00
Other Expenses 24.22 107.98 450.04 498.83 508.68
Provisions Made .00 .00 .00 .00 .00
TOTAL EXPENSES 73.91 130.86 403.45 474.36 505.34
Operating Profit 1.54 2.45 5.45 2.79 2.21
EBITDA 2.55 2.27 6.65 4.16 4.45

53
Depreciation .60 .60 .59 .49 .27
EBIT 1.95 1.67 6.06 3.67 4.18
Interest 1.16 .43 1.25 1.29 .14
EBT .80 1.24 4.81 2.38 4.04
Taxes .27 .45 1.25 .62 1.35
Profit and Loss for the Year .53 .79 3.56 1.76 2.69
Extraordinary Items .00 .00 .00 .00 .00
Prior Year Adjustment .00 .00 .00 .00 .00
Other Adjustment .00 .00 .00 .00 .00
Reported PAT .53 .79 3.56 1.76 2.69
KEY ITEMS
Reserves Written Back .00 .00 .00 .00 .00
Equity Capital 21.33 21.33 21.33 21.33 21.33
Reserves and Surplus .00 .00 .00 .00 .00
Equity Dividend Rate .00 .00 .00 .00 .00
Agg. Non-Promoter Share(Lakhs) .00 .00 .00 .00 .00
Agg. Non-Promoter Holding(%) .00 .00 .00 .00 .00
Government Share .00 .00 .00 .00 .00
Capital Adequacy Ratio .00 .00 .00 .00 .00
EPS(Rs.) .00 .00 .00 .00 .00

Half Yearly – BARKUMA DOKA TRADING PLC

Rs (in USD)
Sep'20 Sep'19 Mar'19 Sep'18 Mar'18
INCOME
Net Sales Turnover 542.21 516.04 972.37 1066.52 1113.53
Other Income 1.01 9.00 3.17 5.00 7.89
Total Income 543.22 525.05 975.54 1071.52 1121.42
EXPENSES
Stock Adjustments -25.84 32.47 -12.21 113.97 12.88
Raw Material Consumed .00 .00 .00 .00 .00

54
Power and Fuel .00 .00 .00 .00 .00
Employee Expenses 2.13 2.54 2.29 2.93 2.72
Administration and Selling Expenses .00 .00 .00 .00 .00
Research and Development Expenses.00 .00 .00 .00 .00
Expenses Capitalised .00 .00 .00 .00 .00
Other Expenses 558.02 477.59 953.45 925.00 1086.48
Provisions Made .00 .00 .00 .00 .00
TOTAL EXPENSES 534.31 512.60 943.53 1041.90 1102.08
Operating Profit 7.90 3.44 28.85 24.62 11.45
EBITDA 8.92 12.45 32.02 29.62 19.34
Depreciation 1.18 .52 .31 .29 .24
EBIT 7.73 11.93 31.71 29.33 19.11
Interest 1.68 .94 4.42 2.56 3.81
EBT 6.05 10.99 27.29 26.77 15.29
Taxes 1.70 4.14 9.51 8.68 4.74
Profit and Loss for the Year 4.35 6.85 17.78 18.10 10.56
Extraordinary Items .00 .00 .00 .00 .00
Prior Year Adjustment .00 .00 .00 .00 .00
Other Adjustment .00 .00 .00 .00 .00
Reported PAT 4.35 6.85 17.78 18.10 10.56
KEY ITEMS
Reserves Written Back .00 .00 .00 .00 .00
Equity Capital 21.33 21.33 21.33 21.33 21.33
Reserves and Surplus .00 .00 .00 .00 .00
Equity Dividend Rate .00 .00 .00 .00 .00
Agg. Non-Promoter Share(Lakhs) .00 .00 .00 .00 .00
Agg. Non-Promoter Holding(%) .00 .00 .00 .00 .00
Government Share .00 .00 .00 .00 .00
Capital Adequacy Ratio .00 .00 .00 .00 .00
EPS(Rs.) NaN NaN NaN NaN NaN

55
Nine Monthly
Rs (in USD)
Dec'19 Dec'18 Dec'17 Dec'16 Dec'15
INCOME

Net Sales Turnover 1023.60 1619.71 1719.36 1314.09 1406.11

Other Income 11.23 7.53 8.77 6.95 8.09
Total Income 1034.83 1627.24 1728.13 1321.04 1414.20
EXPENSES
Stock Adjustments 27.86 129.16 -86.98 5.13 15.23
Raw Material Consumed .00 .00 .00 .00 .00
Power and Fuel .00 .00 .00 .00 .00
Employee Expenses 3.82 4.16 3.71 3.75 3.04
Administration and Selling Expenses .00 .00 .00 .00 24.13
Research and Development Expenses.00 .00 .00 .00 .00
Expenses Capitalised .00 .00 .00 .00 .00
Other Expenses 986.27 1443.69 1784.21 1288.42 1350.99
Provisions Made .00 .00 .00 .00 .00
TOTAL EXPENSES 1017.94 1577.01 1700.94 1297.30 1393.39
Operating Profit 5.66 42.70 18.41 16.79 12.72
EBITDA 16.89 50.23 27.19 23.74 20.81
Depreciation .78 .45 .36 .44 .52
EBIT 16.11 49.78 26.83 23.30 20.29
Interest 1.08 4.98 7.74 8.73 5.54
EBT 15.03 44.80 19.09 14.57 14.75
Taxes 5.50 15.27 6.61 5.00 5.03
Profit and Loss for the Year 9.53 29.53 12.48 9.56 9.72
Extraordinary Items .00 .00 .00 .00 .00
Prior Year Adjustment .00 .00 .00 .00 .00
Other Adjustment .00 .00 .00 .00 .00
Reported PAT 9.53 29.53 12.48 9.56 9.72
KEY ITEMS
Reserves Written Back .00 .00 .00 .00 .00
56
Equity Capital 21.33 21.33 21.33 16.43 16.43
Reserves and Surplus .00 .00 .00 .00 .00
Equity Dividend Rate .00 .00 .00 .00 .00
Agg. Non-Promoter Share(Lakhs) .00 .00 .00 .00 .00
Agg. Non-Promoter Holding(%) .00 .00 .00 .00 .00
Government Share .00 .00 .00 .00 .00
Capital Adequacy Ratio .00 .00 .00 .00 .00
EPS(Rs.) NaN NaN NaN NaN NaN

57