[BUZAYEHU YESHITILA CONSTRUCTION MATERIAL TRANSPORTATION SERVICE BUSINESS PLAN]

I. EXECUTIVE SUMMARY

Transportation is the actual physical movement of people and goods from one place to

another and several means of transportations exist for both man and goods. These means it

has evolved through the length of time of man's existence on the planet. Transport is a

fundamental sector for and of the economy. Efficient transport services and infrastructure are

vital to exploiting the economic strengths of all regions of the Country, to supporting the

overall building construction and to enabling economic and social cohesion. They also

influence trade competitiveness, as the availability, price, and quality of transport services

have strong implications on construction processes and the choice of trading partners. The

provision of more efficient transport services can affect citizens & businesses tangibly.

This proposal envisages the establishment of a transportation and distribution business of

different construction materials mainly using SINO Truck Vehicles. The business is

established by Ato Buzayehu Yeshitila in Dire Dawa City. The major functions of the firm

will be giving quality transportation of construction Material transportation service. The

service is highly demanded in the Dire Dawa 3 kilo and surrounding areas. The present

demands of construction material for the proposed service is estimated to be high and there

are presences of significant market for this business.

The total investment requirement is estimated at Birr 23,062,000.00 out of which Birr

22,540,000.00 is required for purchase of the two Vehicles. 70% of the two Vehicles cost

(ETB 15,778,000.00) is assumed to be covered by Abyssinia Bank and the remaining 30%

(ETB 7,284,000.00) will be covered by the business promoter. Technical viability of the

Vehicles has also been assessed. In line with this the Vehicles which is technically viable is

included. The business will create employment opportunities for some peoples including the

owner, driver and driver helper. Besides, it has some socio-economic -benefits and have no

significant negative impact on the environment.

The project is financially viable and feasible with net profit of two Vehicles Birr 2,896,660.00

and Birr 3,836,646.45 during the first and fifth year of projection respectively. Furthermore,

the cash flow projection also shows a cumulative cash balance of Birr 3,475,321.23 and Birr

19,076,789.16 in the 1st & 5th year of project period respectively indicating that the firm will

nor face liquidity problem to finance its operational cost and meeting its obligation.

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II. BACKGROUND INFORMATION

2.1. The Business and Its Objectives

 Name of the Applicant:-Ato. Buzayehu Yeshitila Tefera

 Nationality:-Ethiopian

 Marital Status:-Married

 Phone:- +251-09-15-75-08-90

 Business address:-

o Region:-Dire Dewa

o Zone:-Dire Dawa

o Woreda:-Dire Dawa

o Kebele:- 02

o Phone:- +251-09-15-75-08-90

 Type of business:-construction material Transportation service

 Legal form of Business:-Sole Proprietorship.

 Status of the project:-New

 Project Objective:-

o The objective of the business is to run and sustain a profitable, environment

friendly and socially acceptable business with intention of giving quality

service and satisfying the interest of our customers.

2.2. Brief History of the Business Owner

The owner Ato Buzayehu Yeshitila is the general manger of the business. He is mechanics of

heavy truck and owner of heavy truck garage has many years of overall experience in

Mechanics and garage business activities. He is a dependable, hard working person which is

very loyal in paying government tax and this will imply the successfulness of his businesses

in the near future. Regarding his credit relationship, Ato Buzayehu Yeshitila have no previous

credit relation with local banks of the country. Generally, based on the above given concise

facts, the prospective manager has sufficient experience and capacity to run the planned firm.

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III. KEY SUCCESS AND RISK FACTORS

3.1. Key Success Factors

3.1.1. Macro Level Success factors

 A continuous GDP Growth which highlights a positive trend of economic growth.

 Infrastructural development mainly in the area of road construction eases providing

quality service.

 Favorable business policy and strategies. Amongst these, favorable conditions of getting

Vehicles financing from banks with IFB financing and low taxation rate can be taken as

indication.

 Availability of skilled, educated and specialized manpower from higher institutions,

Technical and Vocational Colleges and existence of sufficient daily laborers in the

country.

 The availability of growing market for such businesses.

 Labor availability and quality: Good labor availability and quality are critically important

to the success of a project. Labor should be available in which their productivity is high,

turnovers low and should have good work ethic.

3.1.2. Sector and Firm Level Success factors

 Strong support and incentives from the government.

 Increasing income and growing consumption levels of peoples in most areas which leads

to high demand for different products that enhance this business.

 Experienced management: For a firm to be successful, it should be well-managed. The

management should have key skills like motivation, ability to gather resources, financial

management, human resource management, marketing and technical skills. This specific

business has relatively good and experienced manager which is one of the key success

factors for the business.

 The project owner has good working experience; he had good social interaction and

mettax obligations .He has no credit relations with local banks before.

 The business complies with all national and local laws and regulations.

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3.2. Risk Factors

3.2.1. General Risk
 New entrants:With the establishment of new firms and expansion of the existing ones,
the market for this business might get tight.
 Wage rate for daily laborers increasing over time and this possibly raise cost of
production which in turn affects competitiveness of firms in the market.
 Possibility of unexpected Vehicles accident may happen.
 Higher turnover of daily laborers and so on.
3.3. Risk Mitigating Measures
 Designing appropriate strategies to deal with the new entrants and having competitive
edge.
 Scheduling the transportation period corresponding to the higher market demand.
 Fully insuring the Vehicles for possible hazards so as to minimize the various risks
associated with it.
 Giving quality and timely service to satisfy the customers as much as possible.
 Providing attractive fringe benefit package for employees so as to mitigate the risk
associated with high employee turnover.
3.4. SWOT ANALYSIS

Strength Opportunity
 Commitment of the promoter for the  Large and growing demand for this
implementation of the business. business.
 Good working culture of the owner.  Abundant labor force.
 The project manager has sufficient  Strong support and incentives from the
knowledge and experience. government.
 The institution to employ qualified and  Suitability of the business at this time.
skilled workers.  Increasing income and growing
 The service of the firm is highly required in consumption levels of peoples.
the market.

Weakness Threat
 Does not give the service to the rest of the  New entrants
world outside Ethiopia.  Car accident possibility

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IV. MARKET ASSESSMENT

Under this section qualitative overall market assessment will be made since there is
no compiled quantitative data on transportation service to be deeply analyzed in
figure. Ethiopia has a large domestic market of over 100 million people, making it the
second most populous country in Africa after Nigeria. Over the last decade, Ethiopia
has had one of the fastest growing economies in the world, with average annual
growth rates ranging from 7% to 12%(depending on data sources).In 2018, Ethiopia's
real Gross Domestic Product(GDP) expanded by 7.7 percent, and is expected to grow
by 8.5% in 2019, according to the World Bank.

The business climate is undergoing significant changes with broad policy reforms
implemented under the new leadership of Prime Minister Abiy Ahmed, Government
plans to privatize leading state-owned enterprises signal a significant shift toward
market based reforms and a new flexibility with respect to economic policymaking.
The acute foreign exchange shortage remains the leading challenge for U.S. suppliers,
for which there is no quick fix.

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. The National Bank of
Ethiopia (NBE) The construction industry, particularly roads, railways, dams,
industrial parks and homes, is the main driver of growth in the industrial sector,
contributing more than half of the sector's growth. Service sector growth is dominated
by expansion in communication and transport services, hotel and restaurant
businesses, as well as wholesale and retail trading.

Generally speaking, to see the availability of huge markets gaps in transportation

service sector it sufficient to see the road transport Vehicless to population ratio. In
this regard, when considered in terms of numbers and Vehicles-population ration the
state of road transport in Ethiopia figures much lower than that of the other Sub-
Saharan African countries. Compared to the size of Ethiopia's population, the number
of Vehicless available is very low indicating big market demand for the transportation
service sector.

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4.1. Availability of material inputs and human resource

The main material inputs required for the business is fuel and spare parts which could
be available domestically. Hence it is planned to purchase material inputs locally
where the product is required as deemed necessary. Good labor availability and
quality are critically important to the success of a project. Labor should be available
in which their productivity is high and should have good work ethic. Both skilled and
unskilled labor force is available in Water town and its surroundings at a lower wage
rate.

4.2. The marketing strategy of the firm

The firm will mainly transport and distribute construction material different qualities
from Dire Dawa city and surrounding areas to Dire Dawa, and other major cities of
the eastern part of the country with high construction material demand. As a major
marketing strategy, the business will make permanent connection with local whole
sellers and buyers, licensed retail traders and distributors of construction material
from local towns to the cities mentioned above. The Vehicles will also transport other
products and materials as deemed necessary.

The transportation and distribution service will be given to the above stated towns and
other surrounding areas keeping the delivery time issues as per requests from the
customers. Besides, it is planned to use relatively low cost and quality services as a
tools of marketing strategy to build sufficient good will and acceptance by the
customers.

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V. TECHNICAL ASPECT OF THE BUSINESS

5.1. Business location and accessibility

The business is located in Dire Dawa city. This business is a transportation and
distribution service and hence there is no need to discuss about its accessibility and
the required facilities such as water, electric power, and communication which are
very vital for the smooth operation of other business as they are irrelevant here. One
challenge here is the quality of the roads which is the case throughout the country and
this again is expected to be improved in the coming times.

5.2. Project Investment

5.2.1. Machineries and equipment's
The main machinery required for this business is Vehicles and their cost is
summarized in the table below.
Table 5.1. Vehicles to be purchased
Quantity and Amount
S.No. Description Supplier
Qty Unit Price Total price
SINO TRUCK
AhmednajiMuktar
1 Manufacturing year 02 9,800,000.00 19,600,000.00
Ali importer
2021: Color: Red
15% VAT 2,940,000.00
Total price 22,540,000.00

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VI. ORGANIZATION AND MANAGEMENT

6.1. Organizational structure and management of the business
Management competency is one of the determinant factors for the success or failure
of a business. Efficient management will play a significant role for the successful
operation and enables the project to achieve its objective of establishment. Likewise,
inefficient and incompetent management causes failure and collapse of the project at
early age. As a result, proper staffing plays significant role for the success of any
business venture.

Table 6.1. Organizational Structure of the business

General Manager

Accountant/cashier
Driver and assistant driver

The overall operation of the project is planned to be run by Ato Buzayehu Yeshitila
who is the general manager of the venture. He is responsible in monitoring and
controlling the general project operations in collaboration with other skilled
employees hired. The prospective manager has sufficient experience in running
businesses. Apart from this, the business will employ some other qualified employees
at different levels as shown above. Therefore, in general the management of the
business is believed to be run smoothly and efficiently.

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VII. FINANCIAL PLAN OF THE BUSINESS

7.1. Business Investment Cost
The total investment cost of the venture is found to be Birr 23,062,000.00 all of which is
planned investment. The detail of total project investment cost is depicted on the table below.

Table 7.1. Total investment and source of fund

Financial Plan
Description Abyssinia Total Cost
Existing Planned Equity(Birr)
Bank(birr) (birr)
SINO Truck - 22,540,000.00 15,778,000.00 6,762,000.00 22,540,000.00
Manufacturing year 2021:

Color: red

Sub total - 22,540,000.00 15,778,000.00 6,762,000.00 22,540,000.00

Working capital - 522,000.00 - 522,000.00 522,000.00
Sub total - 522,000.00 - 522,000.00 522,000.00
Total cost - 23,062,000.00 15,778,000.00 7,284,000.00 23,062,000.00
Abyssinia Bank & Equity Contribution Ratio 70% 30% 100%
Abyssinia Bank & Equity Contribution Ratio 60% 40% 100%
(including working capital)

7.2. Projected Financial Statements

7.2.1. Profit/loss forecast

Profit/loss forecast presents the results of project's operations during a period of time.
It shows income earning from the project and expenses incurred in attaining the
income. The projected profit/loss statement of this business reveals that the firm will
earn profit of Birr 2,896,000.00 during first year of its operation and earn profit of
Birr 3,836,646.00 in the 5th year of projection. This indicates that the firm could run
profitable business venture and can maintain objective of its establishment at
competitive quality and price.

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Table 7.2. Projected Income Statement

Projection year
Description
Year 1 Year 2 Year 3 Year 4 Year 5
Revenue 12,000,000 12,600,000 13,230,000 13,891,500 14,586,075
Less: operating cost 5,289,600 5,554,080 5,831,784 6,123,373.2 6,429,542
Gross: profit 6,710,400 7,045,920 7,398,216 7,768,126.8 8,156,533
Less depreciation 2,254,000 2,254,000 2,254,000 2,254,000 2,254,000
Profit before tax 4,456,400 4,791,920 5,144,216 5,514,126.8 5,902,533
Less: tax provision (35%) 1,559,740 1,677,172 1,800,475.6 1,929,944.38 2,065,886.55
Net profit 2,896,660 3,114,748 3,343,740.4 3,584,182.42 3,836,646.45

7.2.2. Cash Flow Forecast

Cash flow projection provides a look at the movement of cash in and out of the project. It is
important in determining whether or not a company has enough cash to pay its bills, handle
expenses and acquire assets. Thus, it is important to give due attention to identify whether the
total inflows of the project have the capacity to cover all cash outflows during its operational
period. Based on this fact, the forecasted cumulative cash balance shows a balance of Birr
3,475,321.23 in the first year and will grow up to Birr 19,076,789.16 at the end of projection
period, demonstrating that the project will not face liquidity constraint to finance its
operational costs as well as meeting its obligation.
Table 7.3. Projected Cash Flow Statement
Years
Description
0 1 2 3 4 5
Cash flow
Owners Equity 7,284,000

Abyssinia Bank 15,778,000

Net profit 2,896,660 3,114,748 3,343,740.4 3,584,182.42 3,836,646.45

Depreciation 2,254,000 2,254,000 2,254,000 2,254,000 2,254,000

Total Cash Inflows 23,062,000 5,150,660 5,368,748 5,597,740.4 5,838,182.42 6,090,646.45

Cash Outflows

Investment
Costs(Vehicles) 22,540,000

Increase in working
capital 522,000 - 26,100 27,405 28,775.25 30,214.0125

Abyssinia Bank
Repayment 1,675,338.77 1,675,338.77 1,675,338.77 1,675,338.77 1,675,338.77

Total Cash Outflows 0 100,000 110,000 120,000 150,000

Net Cash inflow 23,062,000 1,675,338.77 1,801,438.77 1,812,743.77 1,824,114.02 1,855,552.783

Cumulative Cash Balance 3,475,321.23 3,567,309.23 3,784,996.63 4,014,068.4 4,235,093.668

Retained Earning 3,475,321.23 7,042,630.46 10,827,627.09 14,841,695.49 19,076,789.16

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7.2.3. Balance Sheet Projection

Balance Sheet Projection is used to provide insight into assets and debts of the project at a
particular point in time. Total assets of the project expected to rise from Birr 22,540,000.00
during the first operational year to birr 19,302,189.00 at the end of the projection year as
shown in the table below.

Table 7.4. Balance Sheet Projection

Years
Description
0 1 2 3 4 5
A. ASSETS
Current asset
Cash 3,475,321.23 7,042,630.46 10,827,627.09 14,841,695.49 19,076,789.16

Total fixed assets 3,475,21.23 7,042,630.46 10,827,627.09 14,841,695.49 19,076,789.16

Fixed assets
Vehicles 22,540,000 22,5400 22,5400 22,5400 22,5400

Total fixed assets 22,540,000 0 22,5400 22,5400 22,5400 22,5400

Total assets 22,540,000 3,475,21.23 7,268,030.46 11,053,027.09 15,067,095.49 19,302,189.16

B. LIABILITY
Abyssinia Bank 15,778,000 7,284,000 8,494,000

Total liability 15,778,000 7,284,000 8,494,000

C. OWNER EQUITY

Equity contribution 6,762,000 6,762,000 6,762,000 6,762,000 6,762,000 6,762,000

Retaining earning 3,475,321.23 6,969,375.46 10,604,199.25 14,387,331.26 18,306,686.72

Total capital 6,762,000 10,237,321.23 13,731,375.46 17,366,199.25 21,149,331.26 25,068,686.72

Total liability and

capital 22,540,000 3,475,21.23 7,268,030.46 11,053,027.09 15,067,095.49 19,302,189.16

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VIII. ECONOMIC BENEFITS

The establishment of this business will have the following socio economic benefits.
 Job creation: This business will create job opportunities for some peoples
including the owner, driver, vice driver, loader and unloader, etc.
 Tax Revenue: the firm will generate substantial revenue to the government in
the form of taxes.
 Impact on Environment: The project is somewhat environment friendly.
 GDP Contribution: The quality transportation and distribution service
provided will have a contribution to the GDP and enhance income of the
workers employed and the owner too.
 Knowhow Transfer: The establishment of such business allows the transfer
of the techniques and qualities of transportation and distribution service from
one firm to another.

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IX. CONCLUSION
It has been tried to go through all the issues that determine the success and failure of a
business and touch all important aspects. After some assessment and investigations it
is found that the firm is profitable and the General Manager is capable to run the
business successfully. His work experience and sense of company ownership with the
help of other staff will help him to run the day to day activities and overall
management activities of the project. In view of the fact that market condition for the
proposed business has vital role for realization of objectives of establishment of the
proposed project, it has also been tried to review qualitatively the contemporary
market condition of the service and there observed huge demand.

Technical viability of the business has also been scoped. The Vehicles to be
purchased is found to be technically viable. For smooth and optimal operation of the
project, organizational structure of the project is also assessed briefly.
Notwithstanding the above, financial viability of the venture is unquestionable to
determine acceptance or rejection of the project. As tried to go through each financial
component, the business is financially viable and capable to achieve its objective and
cover all its costs. At the same time, establishment of the firm has also various socio-
economic importance. However, unhidden fact, it does not mean that this business is
totally free from obvious business risks. But, with mitigating mechanisms, its national
significance considerably surpasses those anticipated risks.

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ANNEX’S
Annex 1: Basic Assumptions
1 Assumptions used for financial
analysis Basic Assumptions
Working days per Annum 300
Number of shifts/Trips per day 5

2. Revenue Estimation
Note: Revenue is expected to be generated from transportation of mainly Construction material
from 3kilo to Dire Dawa and its surrounding as assumed hereunder
S.No. Revenue from Vehicles usage Per day Average revenue Annual revenue
Construction material from 3kilo 12,000,000.00
1 40,000.00 20,00.00
to Dire Dawa and its surrounding
Total Revenue 12,000,000.00

3. Expenses
N.B:Hereunder is a summary ofannual expenses calculated based on current market value
S.No Description unit Amount Total annual express
1. Cost of salary and allowance of ETB
driver 48,0000 48,0000
2. Salary and allowance of driver ETB
helper 12,0000 12,0000
3. Cost of tyre ETB 27,2000 27,2000
4. Permanent whole service ETB 4,8000 4,8000
5. Immediate spare part damage ETB
service 15,0000 15,0000
6. Motor oil change ETB 96,000 96,000
7. Fuel usage ETB 180,0000 180,0000
8. Insurance ETB 14,000 14,000
9. Car washing ETB 14,400 14,400
10. Depurator cleaning and tyre air ETB
measurement 28,800 28,800
11. Car competency level measure ETB
(bolos) payment, 5,000 5,000
12. Third wagon cost ETB 7,400 7,400
13. Depreciation expense ETB 2,254,000 2,254,000
Total Expense 5,289,600.00

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Annex 2: Operating Cost Projection

Projection year
Description
Year 1 Year 2 Year 3 Year 4 Year 5
Operational expenses
Cost of salary and allowance of
driver 480,000 504,000 529,200 555,660 583,443
Salary and allowance of driver
helper 120,000 126,000 132,300 138,915 145,860.75
Cost of tyre 272,000 285,600 299,880 314,874 33,0617.7
Permanent whole service 48,000 50,400 52,920 55,566 58,344.3
Immediate spare part damage
service 150,000 157,500 165,375 173,643.75 182,325.938
Motor oil change 96,000 100,800 105,840 111,132 116,688.6
Fuel usage 1,800,000 1,890,000 1,984,500 2,083,725 2,187,911.25
Insurance 14,000 14,700 15,435 16,206.75 17,017.0875
Car washing 14,400 15,120 15,876 16,669.8 17,503.29
Depurator cleaning and tyre air
measurement 28,800 30,240 31,752 33,339.6 35,006.58
Car competency level measure
(bolos) payment, 5,000 5,250 5,512.5 5,788.125 6,077.53125
Third wagon cost 7400 7770 8158.5 8566.425 8,994.74625
Depreciation expense 2,254,000 2,254,000 2,254,000 2,254,000 2,254,000
Total 5,289,600 5,441,380 5,600,749 5,768,086.45 5,943,790.77

N.B: Operating costs are assumed to increase by 5% annually.

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Annex 3: Working Capital Determination

Period Year
Description per 1 2 3 4 5
month
Cost of salary and allowance of
driver 1 month 40,000 42,000 44,100 46,305 48,620.25
Salary and allowance of driver
helper 1 month 10,000 10,500 11,025 11,576.25 12,155.0625
Cost of tyre 3 months 68,000 71,400 74,970 78,718.5 82,654.425
Permanent whole service 4 months 16,000 16,800 17,640 18,522 19,448.1
Immediate spare part damage
service 4 months 50,000 52,500 55,125 57,881.25 60,775.3125
Motor oil change 4 months 32,000 33,600 35,280 37,044 38,896.2
Fuel usage 1 months 150,000 157,500 165,375 17,3643.75 182,325.9375
Insurance Once 140,000 14,7000 154,350 162,067.5 170,170.875
Car washing 1 months 1,200 1,260 1,323 1,389.15 1,458.6075
Depurator cleaning and tyre air
measurement 1 months 2,400 2,520 2,646 2,778.3 2,917.215
Car competency level measure
(bolos) payment, Once 5,000 5,250 5,512.5 5,788.125 6,077.53125
Third wagon cost once 7,400 7,770 8,158.5 8,566.425 8,994.74625
Total 522,000 548,100 575,505 604,280.25 634,494.2625
Increase in working capital 26,100 27,405 28,775.25 30,214.0125

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Annex 4: Projected Income Statement

Projection year
Description
Year 1 Year 2 Year 3 Year 4 Year 5
Revenue 12,000,000 12,600,000 13,230,000 13,891,500 14,586,075
Less: operating cost 5,289,600 5,554,080 5,831,784 6,123,373.2 6,429,542
Gross: profit 6,710,400 7,045,920 7,398,216 7,768,126.8 8,156,533
Less depreciation 2,254,000 2,254,000 2,254,000 2,254,000 2,254,000
Profit before tax 4,456,400 4,791,920 5,144,216 5,514,126.8 5,902,533
Less: tax provision (35%) 1,559,740 1,677,172 1,800,475.6 1,929,944.38 2,065,886.55
Net profit 2,896,660 3,114,748 3,343,740.4 3,584,182.42 3,836,646.45

Annex 5: Projected Cash Flow Statement

Years
Description
0 1 2 3 4 5
Cash flow
Owners Equity 7,284,000

Abyssinia Bank 15,778,000

Net profit 2,896,660 3,114,748 3,343,740.4 3,584,182.42 3,836,646.45

Depreciation 2,254,000 2,254,000 2,254,000 2,254,000 2,254,000

Total Cash Inflows 23,062,000 5,150,660 5,368,748 5,597,740.4 5,838,182.42 6,090,646.45

Cash Outflows

Investment Costs(Vehicles) 22,540,000

Increase in working capital 522,000 0 26,100 27,405 28,775.25 30,214.0125

Abyssinia Bank Repayment 1,675,338.77 1,675,338.77 1,675,338.77 1,675,338.77 167,5338.77

With draw 0 100,000 110,000 120,000 150,000

Total Cash Outflows 23,062,000 1,675,338.77 1,801,438.77 1,812,743.77 1,824,114.02 1,855,552.783

Net Cash inflow 3,475,321.23 3,567,309.23 3,784,996.63 4,014,068.4 4,235,093.668

Cumulative Cash Balance 3,475,321.23 7,042,630.46 10,827,627.09 14,841,695.49 19,076,789.16

Retained Earning 3,475,321.23 7,042,630.46 10,827,627.09 14,841,695.49 19,076,789.16

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Annex 6: Projected Balance Sheet Statement

Years
Description
0 1 2 3 4 5
D. ASSETS
Current asset
Cash 3,475,321.23 7,042,630.46 10,827,627.09 14,841,695.49 19,076,789.16

Total fixed assets 3,475,21.23 7,042,630.46 10,827,627.09 14,841,695.49 19,076,789.16

Fixed assets
Vehicles 22,540,000 22,5400 22,5400 22,5400 22,5400

Total fixed assets 22,540,000 0 22,5400 22,5400 22,5400 22,5400

Total assets 22,540,000 3,475,21.23 7,268,030.46 11,053,027.09 15,067,095.49 19,302,189.16

E. LIABILITY
Abyssinia Bank 15,778,000 7,284,000 8,494,000

Total liability 15,778,000 7,284,000 8,494,000

F. OWNER EQUITY

Equity contribution 6,762,000 6,762,000 6,762,000 6,762,000 6,762,000 6,762,000

Retaining earning 3,475,321.23 6,969,375.46 10,604,199.25 14,387,331.26 18,306,686.72

Total capital 6,762,000 10,237,321.23 13,731,375.46 17,366,199.25 21,149,331.26 25,068,686.72

Total liability and

capital 22,540,000 3,475,21.23 7,268,030.46 11,053,027.09 15,067,095.49 19,302,189.16