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

CONSTRUCTIO
N PRODUCTION
Year 1 Year 2 1 2 3 4

Capacity Utilization (%) 0.00 0.00 70% 80% 90% 100%

11411547.2 13041768.2 14671989.2 16302210.3
1. Total Inventory 0.00 0.00 2 5 8 1

Raw Materials in Stock- Total 0.00 0.00 5189520.00 5930880.00 6672240.00 7413600.00

Raw Material-Local 0.00 0.00 0.00 0.00 0.00 0.00

Raw Material-Foreign 0.00 0.00 5189520.00 5930880.00 6672240.00 7413600.00

Factory Supplies in Stock 0.00 0.00 13556.50 15493.14 17429.79 19366.43

Spare Parts in Stock and Maintenance 0.00 0.00 2213.13 2529.29 2845.46 3161.62

Work in Progress 0.00 0.00 338912.53 387328.60 435744.68 484160.75

Finished Products 0.00 0.00 677825.06 774657.21 871489.36 968321.51

2. Accounts Receivable 0.00 0.00 1596000.00 1824000.00 2052000.00 2280000.00

3. Cash in Hand 0.00 0.00 50571.05 57795.49 65019.93 72244.36

10116769.2 11240854.6
CURRENT ASSETS 0.00 0.00 7868598.27 8992683.74 1 8

4. Current Liabilities 0.00 0.00 1596000.00 1824000.00 2052000.00 2280000.00

Accounts Payable 0.00 0.00 1596000.00 1824000.00 2052000.00 2280000.00

TOTAL NET WORKING CAPITAL REQUIREMENTS 0.00 0.00 6272598.27 7168683.74 8064769.21 8960854.68

INCREASE IN NET WORKING CAPITAL 0.00 0.00 6272598.27 896085.47 896085.47 896085.47
 Annex 1: Total Net Working Capital Requirements (in Birr) (continued)
PRODUCTION
5 6 7 8 9 10

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

16302210.3 16302210.3 16302210.3 16302210.3 16302210.3 16302210.3
1. Total Inventory 1 1 1 1 1 1

Raw Materials in Stock-Total 7413600.00 7413600.00 7413600.00 7413600.00 7413600.00 7413600.00

Raw Material-Local 0.00 0.00 0.00 0.00 0.00 0.00

Raw Material-Foreign 7413600.00 7413600.00 7413600.00 7413600.00 7413600.00 7413600.00

Factory Supplies in Stock 19366.43 19366.43 19366.43 19366.43 19366.43 19366.43

Spare Parts in Stock and Maintenance 3161.62 3161.62 3161.62 3161.62 3161.62 3161.62

Work in Progress 484160.75 484160.75 484160.75 484160.75 484160.75 484160.75

Finished Products 968321.51 968321.51 968321.51 968321.51 968321.51 968321.51

2. Accounts Receivable 2280000.00 2280000.00 2280000.00 2280000.00 2280000.00 2280000.00

3. Cash in Hand 72244.36 72244.36 72244.36 72244.36 72244.36 72244.36

11240854.6 11240854.6 11240854.6 11240854.6 11240854.6 11240854.6
CURRENT ASSETS 8 8 8 8 8 8

4. Current Liabilities 2280000.00 2280000.00 2280000.00 2280000.00 2280000.00 2280000.00

Accounts Payable 2280000.00 2280000.00 2280000.00 2280000.00 2280000.00 2280000.00

TOTAL NET WORKING CAPITAL
REQUIREMENTS 8960854.68 8960854.68 8960854.68 8960854.68 8960854.68 8960854.68

INCREASE IN NET WORKING CAPITAL 0.00 0.00 0.00 0.00 0.00 0.00
 Annex 2: Cash Flow Statement (in Birr)
CONSTRUCTION PRODUCTION
Year 1 Year 2 1 2 3 4
507176.2 9468030.9 16226000.0 16948000.0 19038000.0 21128000.0
TOTAL CASH INFLOW 5 3 0 0 0 0
507176.2 9468030.9
1. Inflow Funds 5 3 1596000.00 228000.00 228000.00 228000.00
202870.5 3787212.3
Total Equity 0 7 0.00 0.00 0.00 0.00
304305.7 5680818.5
Total Long Term Loan 5 6 0.00 0.00 0.00 0.00
Total Short Term Finances 0.00 0.00 1596000.00 228000.00 228000.00 228000.00
14630000.0 16720000.0 18810000.0 20900000.0
2. Inflow Operation 0.00 0.00 0 0 0 0
14630000.0 16720000.0 18810000.0 20900000.0
Sales Revenue 0.00 0.00 0 0 0 0
Interest on Securities 0.00 0.00 0.00 0.00 0.00 0.00
3. Other Income 0.00 0.00 0.00 0.00 0.00 0.00
507176.2 21737766.0 17113392.8 19395765.5 21187022.4
TOTAL CASH OUTFLOW 5 507176.25 2 4 5 0
507176.2
4. Increase In Fixed Assets 5 507176.25 0.00 0.00 0.00 0.00
483025.0
Fixed Investments 0 483025.00 0.00 0.00 0.00 0.00
Pre-production Expenditures 24151.25 24151.25 0.00 0.00 0.00 0.00
5. Increase in Current Assets 0.00 0.00 7868598.27 1124085.47 1124085.47 1124085.47
12490645.1 14273571.7 16056498.3 17839424.8
6. Operating Costs 0.00 0.00 8 4 0 6
7. Corporate Tax Paid 0.00 0.00 0.00 0.00 619148.63 747181.41
8. Interest Paid 0.00 0.00 1378522.57 718214.92 598512.43 478809.94
9.Loan Repayments 0.00 0.00 0.00 997520.72 997520.72 997520.72
10.Dividends Paid 0.00 0.00 0.00 0.00 0.00 0.00
8960854.6
Surplus(Deficit) 0.00 8 -5511766.02 -165392.84 -357765.55 -59022.40
8960854.6
Cumulative Cash Balance 0.00 8 3449088.66 3283695.82 2925930.27 2866907.87
 Annex 2: Cash Flow Statement (in Birr): Continued
PRODUCTION
5 6 7 8 9 10
20900000.0 20900000.0 20900000.0 20900000.0 20900000.0 20900000.0
TOTAL CASH INFLOW 0 0 0 0 0 0
1. Inflow Funds 0.00 0.00 0.00 0.00 0.00 0.00
Total Equity 0.00 0.00 0.00 0.00 0.00 0.00
Total Long Term Loan 0.00 0.00 0.00 0.00 0.00 0.00
Total Short Term Finances 0.00 0.00 0.00 0.00 0.00 0.00
20900000.0 20900000.0 20900000.0 20900000.0 20900000.0 20900000.0
2. Inflow Operation 0 0 0 0 0 0
20900000.0 20900000.0 20900000.0 20900000.0 20900000.0 20900000.0
Sales Revenue 0 0 0 0 0 0
Interest on Securities 0.00 0.00 0.00 0.00 0.00 0.00
3. Other Income 0.00 0.00 0.00 0.00 0.00 0.00
19979145.1 19910251.6 19826459.8 18745147.4 18745147.4 18745147.4
TOTAL CASH OUTFLOW 9 0 6 0 0 0
4. Increase In Fixed Assets 0.00 0.00 0.00 0.00 0.00 0.00
Fixed Investments 0.00 0.00 0.00 0.00 0.00 0.00
Pre-production Expenditures 0.00 0.00 0.00 0.00 0.00 0.00
5. Increase in Current Assets 0.00 0.00 0.00 0.00 0.00 0.00
17839424.8 17839424.8 17839424.8 17839424.8 17839424.8 17839424.8
6. Operating Costs 6 6 6 6 6 6
7. Corporate Tax Paid 783092.15 833901.05 869811.80 905722.54 905722.54 905722.54
8. Interest Paid 359107.46 239404.97 119702.49 0.00 0.00 0.00
9. Loan Repayments 997520.72 997520.72 997520.72 0.00 0.00 0.00
10.Dividends Paid 0.00 0.00 0.00 0.00 0.00 0.00
 Surplus(Deficit) 920854.81 989748.40 1073540.14 2154852.60 2154852.60 2154852.60
10160756.4 12315609.0
Cumulative Cash Balance 3787762.68 4777511.08 5851051.22 8005903.82 2 2

Annex 3: DISCOUNTED CASH FLOW-TOTAL CAPITAL INVESTED

CONSTRUCTION PRODUCTION
Year 1 Year 2 1 2 3 4
20900000.0
TOTAL CASH INFLOW 0.00 0.00 14630000.00 16720000.00 18810000.00 0
20900000.0
1. Inflow Operation 0.00 0.00 14630000.00 16720000.00 18810000.00 0
20900000.0
Sales Revenue 0.00 0.00 14630000.00 16720000.00 18810000.00 0

Interest on Securities 0.00 0.00 0.00 0.00 0.00 0.00

2. Other Income 0.00 0.00 0.00 0.00 0.00 0.00

19482691.7
TOTAL CASH OUTFLOW 507176.25 507176.25 18763243.45 15169657.21 17571732.40 4

3. Increase in Fixed Assets 507176.25 507176.25 0.00 0.00 0.00 0.00

Fixed Investments 483025.00 483025.00 0.00 0.00 0.00 0.00

Pre-production Expenditures 24151.25 24151.25 0.00 0.00 0.00 0.00

4. Increase in Net Working Capital 0.00 0.00 6272598.27 896085.47 896085.47 896085.47
17839424.8
5. Operating Costs 0.00 0.00 12490645.18 14273571.74 16056498.30 6

6. Corporate Tax Paid 0.00 0.00 0.00 0.00 619148.63 747181.41

NET CASH FLOW -507176.25 -507176.25 -4133243.45 1550342.79 1238267.60 1417308.26

CUMMULATIVE NET CASH FLOW -507176.25 -1014352.50 -5147595.95 -3597253.16 -2358985.55 -941677.29
Net Present Value (at 18%) -507176.25 -429810.38 -2968431.09 943586.49 638684.65 619518.50

Cumulative Net present Value -507176.25 -936986.63 -3905417.72 -2961831.23 -2323146.58 -1703628.08

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

PRODUCTION
5 6 7 8 9 10
20900000.0 20900000.0 20900000.0 20900000.0 20900000.0 20900000.0
TOTAL CASH INFLOW 0 0 0 0 0 0
20900000.0 20900000.0 20900000.0 20900000.0 20900000.0 20900000.0
1. Inflow Operation 0 0 0 0 0 0
20900000.0 20900000.0 20900000.0 20900000.0 20900000.0 20900000.0
Sales Revenue 0 0 0 0 0 0

Interest on Securities 0.00 0.00 0.00 0.00 0.00 0.00

2. Other Income 0.00 0.00 0.00 0.00 0.00 0.00

18622517.0 18673325.9 18709236.6 18745147.4 18745147.4 18745147.4
TOTAL CASH OUTFLOW 1 1 6 0 0 0

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

Fixed Investments 0.00 0.00 0.00 0.00 0.00 0.00

Pre-production Expenditures 0.00 0.00 0.00 0.00 0.00 0.00

4. Increase in Net Working Capital 0.00 0.00 0.00 0.00 0.00 0.00
17839424.8 17839424.8 17839424.8 17839424.8 17839424.8 17839424.8
5. Operating Costs 6 6 6 6 6 6

6. Corporate Tax Paid 783092.15 833901.05 869811.80 905722.54 905722.54 905722.54

NET CASH FLOW 2277482.99 2226674.09 2190763.34 2154852.60 2154852.60 2154852.60

10062948.3 12217800.9
CUMMULATIVE NET CASH FLOW 1335805.70 3562479.79 5753243.13 7908095.73 3 2
Net Present Value (at 18%) 843651.53 699008.74 582826.66 485824.60 411715.76 348911.66

Cumulative Net present Value -859976.55 -160967.81 421858.85 907683.45 1319399.21 1668310.87

Net Present Value (at 18%) 1,668,310.87

Internal Rate of Return 27.7%

Annex 4: NET INCOME STATEMENT ( in Birr)

PRODUCTION
1 2 3 4 5
Capacity Utilization (%) 70% 80% 90% 100% 100%

1. Total Income 14630000.00 16720000.00 18810000.00 20900000.00 20900000.00

Sales Revenue 14630000.00 16720000.00 18810000.00 20900000.00 20900000.00
Other Income 0.00 0.00 0.00 0.00 0.00
2. Less Variable Cost 12299650.73 14056743.69 15813836.65 17570929.61 17570929.61
VARIABLE MARGIN 2330349.27 2663256.31 2996163.35 3329070.39 3329070.39
(In % of Total Income) 15.93 15.93 15.93 15.93 15.93
3. Less Fixed Costs 282154.95 307988.55 333822.15 359655.75 359655.75
OPERATIONAL MARGIN 2048194.32 2355267.76 2662341.20 2969414.64 2969414.64
(In % of Total Income) 14 14 14 14 14
4. Less Cost of Finance 1378522.57 718214.92 598512.43 478809.94 359107.46
5. GROSS PROFIT 669671.75 1637052.85 2063828.77 2490604.70 2610307.18
6. Income (Corporate) Tax 0.00 0.00 619148.63 747181.41 783092.15
7. NET PROFIT 669671.75 1637052.85 1444680.14 1743423.29 1827215.03
RATIOS (%)
 Gross Profit/Sales 5% 10% 11% 12% 12%
Net Profit After Tax/Sales 5% 10% 8% 8% 9%
Return on Investment 28% 29% 23% 22% 22%
Return on Equity 17% 41% 36% 44% 46%

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

PRODUCTION
6 7 8 9 10
Capacity Utilization (%) 100% 100% 100% 100% 100%

1. Total Income 20900000.00 20900000.00 20900000.00 20900000.00 20900000.00

Sales Revenue 20900000.00 20900000.00 20900000.00 20900000.00 20900000.00
Other Income 0.00 0.00 0.00 0.00 0.00
2. Less Variable Cost 17570929.61 17570929.61 17570929.61 17570929.61 17570929.61
VARIABLE MARGIN 3329070.39 3329070.39 3329070.39 3329070.39 3329070.39
(In % of Total Income) 16 16 16 16 16
3. Less Fixed Costs 309995.25 309995.25 309995.25 309995.25 309995.25
OPERATIONAL MARGIN 3019075.14 3019075.14 3019075.14 3019075.14 3019075.14
(In % of Total Income) 14 14 14 14 14
4. Less Cost of Finance 239404.97 119702.49 0.00 0.00 0.00
5. GROSS PROFIT 2779670.17 2899372.65 3019075.14 3019075.14 3019075.14
6. Income (Corporate) Tax 833901.05 869811.80 905722.54 905722.54 905722.54
7. NET PROFIT 1945769.12 2029560.86 2113352.60 2113352.60 2113352.60
RATIOS (%)
Gross Profit/Sales 13% 14% 14% 14% 14%
 Net Profit After Tax/Sales 9% 10% 10% 10% 10%
Return on Investment 22% 22% 21% 21% 21%
Return on Equity 49% 51% 53% 53% 53%

Annex 5: Projected Balance Sheet (in Birr)

CONSTRUCTION PRODUCTION
Year 1 Year 2 1 2 3 4
507176.2 9975207.1 12240878.9 13108411.0 13783570.4 14757473.0
TOTAL ASSETS 5 8 3 6 8 5
8960854.6 11317686.9 12276379.5 13042699.4 14107762.5
1. Total Current Assets 0.00 8 3 6 8 5
Inventory on Materials and Supplies 0.00 0.00 5205289.63 5948902.44 6692515.24 7436128.05
Work in Progress 0.00 0.00 338912.53 387328.60 435744.68 484160.75
Finished Products in Stock 0.00 0.00 677825.06 774657.21 871489.36 968321.51
Accounts Receivable 0.00 0.00 1596000.00 1824000.00 2052000.00 2280000.00
Cash in Hand 0.00 0.00 50571.05 57795.49 65019.93 72244.36
8960854.6
Cash Surplus, Finance Available 0.00 8 3449088.66 3283695.82 2925930.27 2866907.87
Securities 0.00 0.00 0.00 0.00 0.00 0.00
507176.2 1014352.5
2. Total Fixed Assets, Net of Depreciation 5 0 923192.00 832031.50 740871.00 649710.50
Fixed Investment 0.00 483025.00 966050.00 966050.00 966050.00 966050.00
483025.0
Construction in Progress 0 483025.00 0.00 0.00 0.00 0.00
Pre-Production Expenditure 24151.25 48302.50 48302.50 48302.50 48302.50 48302.50
Less Accumulated Depreciation 0.00 0.00 91160.50 182321.00 273481.50 364642.00
3. Accumulated Losses Brought Forward 0.00 0.00 0.00 0.00 0.00 0.00
4. Loss in Current Year 0.00 0.00 0.00 0.00 0.00 0.00
507176.2 9975207.1 12240878.9 13108411.0 13783570.4 14757473.0
TOTAL LIABILITIES 5 8 3 6 8 5
5. Total Current Liabilities 0.00 0.00 1596000.00 1824000.00 2052000.00 2280000.00
Accounts Payable 0.00 0.00 1596000.00 1824000.00 2052000.00 2280000.00
Bank Overdraft 0.00 0.00 0.00 0.00 0.00 0.00
6. Total Long-term Debt 304305.7 5985124.3 5985124.31 4987603.59 3990082.87 2992562.15
 5 1
304305.7 5985124.3
Loan A 5 1 5985124.31 4987603.59 3990082.87 2992562.15
Loan B 0.00 0.00 0.00 0.00 0.00 0.00
202870.5 3990082.8
7. Total Equity Capital 0 7 3990082.87 3990082.87 3990082.87 3990082.87
202870.5 3990082.8
Ordinary Capital 0 7 3990082.87 3990082.87 3990082.87 3990082.87
Preference Capital 0.00 0.00 0.00 0.00 0.00 0.00
Subsidies 0.00 0.00 0.00 0.00 0.00 0.00
8. Reserves, Retained Profits Brought Forward 0.00 0.00 0.00 669671.75 2306724.60 3751404.74
9.Net Profit After Tax 0.00 0.00 669671.75 1637052.85 1444680.14 1743423.29
Dividends Payable 0.00 0.00 0.00 0.00 0.00 0.00
Retained Profits 0.00 0.00 669671.75 1637052.85 1444680.14 1743423.29

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

PRODUCTION
5 6 7 8 9 10
15587167.3 16535415.7 17567455.9 19680808.5 21794161.1 23907513.6
TOTAL ASSETS 6 6 0 0 0 9
15028617.3 16018365.7 17091905.9 19246758.5 21401611.1 23556463.6
1. Total Current Assets 6 6 0 0 0 9
Inventory on Materials and Supplies 7436128.05 7436128.05 7436128.05 7436128.05 7436128.05 7436128.05
Work in Progress 484160.75 484160.75 484160.75 484160.75 484160.75 484160.75
Finished Products in Stock 968321.51 968321.51 968321.51 968321.51 968321.51 968321.51
Accounts Receivable 2280000.00 2280000.00 2280000.00 2280000.00 2280000.00 2280000.00
Cash in Hand 72244.36 72244.36 72244.36 72244.36 72244.36 72244.36
10160756.4 12315609.0
Cash Surplus, Finance Available 3787762.68 4777511.08 5851051.22 8005903.82 2 2
Securities 0.00 0.00 0.00 0.00 0.00 0.00
2. Total Fixed Assets, Net of Depreciation 558550.00 517050.00 475550.00 434050.00 392550.00 351050.00
Fixed Investment 966050.00 966050.00 966050.00 966050.00 966050.00 966050.00
Construction in Progress 0.00 0.00 0.00 0.00 0.00 0.00
Pre-Production Expenditure 48302.50 48302.50 48302.50 48302.50 48302.50 48302.50
Less Accumulated Depreciation 455802.50 497302.50 538802.50 580302.50 621802.50 663302.50
3. Accumulated Losses Brought Forward 0.00 0.00 0.00 0.00 0.00 0.00
4. Loss in Current Year 0.00 0.00 0.00 0.00 0.00 0.00
 15587167.3 16535415.7 17567455.9 19680808.5 21794161.1 23907513.6
TOTAL LIABILITIES 6 6 0 0 0 9
5. Total Current Liabilities 2280000.00 2280000.00 2280000.00 2280000.00 2280000.00 2280000.00
Accounts Payable 2280000.00 2280000.00 2280000.00 2280000.00 2280000.00 2280000.00
Bank Overdraft 0.00 0.00 0.00 0.00 0.00 0.00
6. Total Long-term Debt 1995041.44 997520.72 0.00 0.00 0.00 0.00
Loan A 1995041.44 997520.72 0.00 0.00 0.00 0.00
Loan B 0.00 0.00 0.00 0.00 0.00 0.00
7. Total Equity Capital 3990082.87 3990082.87 3990082.87 3990082.87 3990082.87 3990082.87
Ordinary Capital 3990082.87 3990082.87 3990082.87 3990082.87 3990082.87 3990082.87
Preference Capital 0.00 0.00 0.00 0.00 0.00 0.00
Subsidies 0.00 0.00 0.00 0.00 0.00 0.00
8. Reserves, Retained Profits Brought 11297373.0 13410725.6 15524078.2
Forward 5494828.03 7322043.05 9267812.17 3 3 2
9. Net Profit After Tax 1827215.03 1945769.12 2029560.86 2113352.60 2113352.60 2113352.60
Dividends Payable 0.00 0.00 0.00 0.00 0.00 0.00
Retained Profits 1827215.03 1945769.12 2029560.86 2113352.60 2113352.60 2113352.60