Business Plan

Prepared by:
GASHA Consulting

June 2023

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 Contents

1. Executive Summary

2. Background and Description

3. Organization and Management Plan

4. Marketing Plan

5. Production/Service Plan

6. Financial Plan

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 GASHA Consulting PLC
Ascending to the Next Level
1. Executive Summary

The business ventures under Gasha Consulting PLC comprises of mainly Management
consultancy/IT solutions and wholesale distribution of Arada Beer. Related to the
later, the company is doing well with its financial performance but leaving with high
need for working capital.
Upon the financial report and its need for debt financing, the company need for a loan
of 30 million birr which is 67% of the total investment cost. The overall equity to loan
ratio is 45% to 55% but this is the result building included. For the sake of this analysis
however, building excluded for it doesn’t serve the business ventures in question.

Equity Loan in Birr

# Description Investment Executed Planned Total
Cost in Birr Utilized Planned Total Loan
in Birr in Birr equity

1 Vehicles
14,243,582 9,393,156 - 9,393,156 4,850,426 - 4,850,426
Office
2
Equipment 301,534 301,534 - 301,534 - - -
Computers
3
and Printers 21,133 21,133 - 21,133 - - -
Working
4
capital 30,000,000 - - - - 30,000,000 30,000,000
Total
44,566,249 9,715,823 - 9,715,823 4,850,426 30,000,000 34,850,426
Building
18,453,861 18,453,861 - 18,453,861 - - -
%age share
(Building 100% 22% 0% 22% 11% 67% 78%
Excluded)
%age share
Building 100% 45% 0% 45% 8% 48% 55%
included

Financial projection of income and cash flow made and it is proven to be viable with
an internal rate of return (IRR) of 33% and a net present value (NPV) of Birr

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 89,794,617 at a discount rate of 16%. Sensitivity analysis is also deployed and the
business proved to pass negative influences that might come out of the external
environment.

2. Background and Description of the Business

2.1. Types of Products

Gasha Consulting PLC renders consultancy service on management restructure and IT

solutions with its connoisseur staff members. In addition, it is licensed in wholesale
distribution and working Arada Beer distribution in four major areas in Addis.

2.2. The Location of the Business

The business is located in the capital, Addis Ababa where major domestic business
run and international businesses are situated in.

2.3. The Type of the Business

Expertise service management consultancy and IT solutions already doing with

international organizations like WB country offices and whole sale distribution of
Arada Beer as a major distributor in the capital getting engaged in four major areas.

2.4. Operational History

The whole distribution business was commenced three years ago. The company
deployed four van NPR Isuzu in four major areas starring places like Sarbet/Mexico,
Gotera, Saris and Aratkilo/Stadium. Currently, the annual sales surpassed 0.1 billion.

Related to the provision of management consultancy and IT solutions business,

management restructure, business process and IT solutions are on offer. And local and
international businesses are as a client getting themselves much in need of our
services.

2.5. Main Long and Short Term Goals

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 For the sake of operationally understanding the terms short-term goals vs long term
goals, short-term goals are defined as accomplishments that take from 3 months to a
few years. Long-term goals are usually completed in 3 to 5 years, or longer.

Long-Term Goals include

- widening the base of the distribution business to other merchandise items with
securing fixed outlets

- Decupling the sales in five years

- Digitizing sales

Short-Term Goals

- Exporting merchandise items

- Blending IT solutions with wholesale business with distribution and export

- Securing subcontracts from online marketing platforms like Amazon and Alibaba

- Benefiting from the intra-continental growing market AfCFTA

2.5. Sectoral Synopsis

Beer accounts for just shy of 99% of total alcohol consumption in Ethiopia, with the
average adult consuming around 18.4 liters in 2022. This is slightly above the SSA
average, where the average adult consumes around 18.2 liters.

The beer, Arada beer is cocktail type of product making itself unique from other
competing products. With 5% alcohol concentration, Arada beer has for different
types of tastes like lemon, ginger, pineapple and apple. All the raw materials are
sourced locally.

2.6. The Purpose of the Establishment of the Business

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 Gasha Consulting PLC is engaged on management consulting and IT solutions.
Besides, it is the agent of Komari Beverage PLC in distributing Arada Beer the seltzer
type to Major parts of the capital.

3. Organization and Management

3.1. Company Profile

GASHA Consulting is incorporated as a private limited company currently operating

with a registered paid up capital of Br. 208,000.00 of which detail is depicted in the
table as follows:

No. Name of a Shareholder No Shares Par Value Total

Meles Alene Andarge
1. 86 1,000 86,000
Yonathan Amezene
2. Zewde 61 1,000 61,000

3. Mikias Amezene Zewde 61 1,000 61,000

Total 208 208,000

3.1. Management Profile

The company is incorporated as PLC and the owners engage actively in the
management bringing competent minds as well to the pool.
Years
No. Name Position Qualification of Experience
Yonathan Amezene PhD in Software
1. Zewde General Manager Engineering 23
Deputy Manager &
2. Meles Alene Andarge Marketing Manager Certificate 23

3. Yoftahe Demisew Technical and BSc 14

Finance Manager
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 4. Mikias Amezene Zewde HR Manager Certificate 25

Most importantly, they are seasoned in the business with astounding track record.

3.2. Organizational Structure

General Manager

Deputy Manager

Marketing Manager Technical and Finance HR

Manager

3.3 Human Power

Monthly Annual
# Job Title Number
Salary Salary
1 General Manager 1
1,500 18,000.00
2 Deputy and Marketing Manager 1
1,500 18,000.00
3 Technical and Finance Manager 1
1,500 18,000.00

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4 HR Manager 1
1,500 18,000.00
5 Senior Accountant 1 19,682
236,184.00
6 Junior Accountant 1
9,000 108,000.00
7 Distribution Manager 1
9,500 114,000.00
8 Drivers 4 5,000 240,000.00
9 Sales 4 4,500 216,000.00
Sub Total 15 53,682 986,184
Pension and Staff Benefits (20%) 847,952
Grand Total 1,834,136

3.4. Office Equipment

Office equipment includes computers, vehicles and office furniture. This will serve
the very purpose of the establishment of the business of which latest balance sheet
figure (as of Jun 30, 2023) is depicted as below.

COST BALANCE

Vehicle 8,042,398
Office Equipment 196,965

Computers and Printers 5,690

NET BOOK VALUE 8,245,053

3.4. Administrative Expense

Administrative expenses are expenses an organization incurs that are not directly tied
to a specific core function such as sales. These overhead expenses are related to the
organization as a whole, as opposed to individual departments or business units.

Administrative expenses are costs incurred to support the functioning of a business,

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 but which are not directly related to the core function. Some level of administrative
expenses will always be incurred as a necessary part of operations. Management may
allocate administrative expenses to its business units based on a percentage of revenue,
expenses, or other measures.

The administrative and general expense for the latest year is indicated herein below:
Expenses

Salary and benefit Expense 406,271

Rent Expense 92,784

Fuel Expense 499,200

Depreciation 4,368,470

Repair and Maintenance 595,047

Interest Expense 491,048

Utility Expense 27,569

Commission Expense 40,809

Insurance Expense 161,924

Miscellaneous Expense 13,636

Total Expenses 6,696,758

- Wages and salaries expense is assumed to increase at 5% rate per annum.

- Fuel and lubricants expense is assumed to rise at 5% rate per annum.

- Rent expense is assumed to rise at 10% rate per annum.

- Sales and Marketing expense is assumed to increase at 20% rate per annum.

- Utilities expense is assumed to rise at 20% rate per annum.

- Repair and maintenance expense is assumed to remain the same the entire span of

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 the project.

- Insurance expense is assumed to remain the same the entire span of the project.

- Miscellaneous expense is assumed to rise at 10% rate per annum.

4. Marketing Plan

Beer consumption in Ethiopia is expected to reach 1.5 million metric tons by 2026, a
2.3% year-on-year increase from 2021's 1.3 million metric tons. Since 2017, demand
has risen by 1.6% year-on-year. Ethiopia ranked 26th in 2021, just behind Ukraine's
1.3 million metric tons. The United States, Brazil and Germany took the top three
spots. Beer production in Ethiopia is projected to reach 1.9 million metric tons by
2026, a 3.3% year-on-year average since 1998. In 2021, Ethiopia placed 27th, just
behind Peru's 1.6 million metric tons. The United States, Brazil and Mexico occupied
the top three spots.

Ethiopia's beer market dominates the formal alcoholic drinks segment in the country,
accounting for 98.9% of total consumption in the sector in 2022. Beer consumption in
Ethiopia is expected to reach 1.5 million metric tons by 2026, a 5.3% year-on-year
increase from 2021's 1.3 million metric tons. Since 2017, demand has risen by 2.6%
year-on-year.

Arada. Komari came into being in 2018, as the first seltzers producer in the country
investing about USD 29 million on a plant in Cheki, in North Shoa Zone of the Amhara
region. It is here fill the gap of the lack of choices in the market under consideration.
The company said it has begun making the seltzer drink after collecting input from

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 10,000 Ethiopians over three years. It is sugar free with 5% alcohol content. It has
entered the Ethiopian beverage sector with its debut Arada drinks with Lime, Apple,
and Pineapple Grapefruit flavors. In addition, the distribution so far is limited to the
capital city and major cities and the sales of the Brewery Company will increase as it
reaches out the broader market bases.

The sales is getting increasing and from the company’s transaction the sales increased
from 62,656,015 (2022) to 91,045,712 (2023) which is a 45% increase. Most of which
is attributed to the distribution business.

5. Distribution Plan

Besides, the company’s management used its IT solution talents to benefit the
distribution business by designing and deploying a system which facilitated the control
system to be easier. This has contributed in terms of operating efficiently in the market.
Moreover, appreciated by the Brewery Company, it helped create convenient
environment for better communication not only with Gasha Consulting but also
getting deployed to other agents.

6. Financial Plan
Upon the financial report and its need for debt financing, the company need for a loan
of 30 million birr which is 67% of the total investment cost. The overall equity to loan
ratio is 45% to 55% but this is the result after building included. For the sake of this
analysis however, building excluded for it doesn’t serve the business ventures in
question.

The detail of the investment breakdown is illustrated herein below:

# Description Equity Loan in Birr

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 Investment Executed Total
Planned Utilized Planned Total Loan
Cost in Birr in Birr equity
in Birr

1 Vehicles 4,850,42
14,243,582 9,393,156 - 9,393,156 6 - 4,850,426
Office
2
Equipment 301,534 301,534 - 301,534 - - -
Computers
3
and Printers 21,133 21,133 - 21,133 - - -
Working
4
capital 30,000,000 - - - - 30,000,000 30,000,000
Total
44,566,249 9,715,823 - 9,715,823 4,850,426 30,000,000 34,850,426
Building 18,453,861 18,453,861 - 18,453,861 - - -
%age share
(Building Excluded) 100% 22% 0% 22% 11% 67% 78%
%age share
(Building included) 100% 45% 0% 45% 8% 48% 55%

Accordingly the depreciation rate is enumerated hereunder. The method used for calculating
depreciation is straight line for building but written down value for others.

Building and Civil works - 5%

Machinery, equipment and furniture – 10%

Vehicle – 20%

So far, the company is financed with a loan of 4.8 million birr to purchase the vehicles. The loan
to be requested will be served to finance the working capital need of the business.

Loan Repayment Schedule

The requested loan comprises of term loan of Birr 15,000,000 with the following detail and
overdraft facility limit of Br. 15,000,000.00. The overdraft facility, unlike term loan, the interest
calculation is made upon withdrawal. The collateral offered is G+2 commercial building located
in Adama City.

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 Loan Amount 15,000,000.00
Annual Interest Rate 16%
Loan Period in YRS 4
Repayment Mode Quarterly
Grace Period -
Scheduled Total Ending
Beginning Balance Payment Principal Interest Payment Balance

15,000,000 1,287,300 687,300 600,000 1,287,300 14,312,700

14,312,700 1,287,300 714,792 572,508 1,287,300 13,597,908

13,597,908 1,287,300 743,384 543,916 1,287,300 12,854,524

12,854,524 1,287,300 773,119 514,181 1,287,300 12,081,405

12,081,405 1,287,300 804,044 483,256 1,287,300 11,277,362

11,277,362 1,287,300 836,206 451,094 1,287,300 10,441,156

10,441,156 1,287,300 869,654 417,646 1,287,300 9,571,502

9,571,502 1,287,300 904,440 382,860 1,287,300 8,667,062

8,667,062 1,287,300 940,617 346,682 1,287,300 7,726,445

7,726,445 1,287,300 978,242 309,058 1,287,300 6,748,203

6,748,203 1,287,300 1,017,372 269,928 1,287,300 5,730,831

5,730,831 1,287,300 1,058,067 229,233 1,287,300 4,672,764

4,672,764 1,287,300 1,100,389 186,911 1,287,300 3,572,375

3,572,375 1,287,300 1,144,405 142,895 1,287,300 2,427,970

2,427,970 1,287,300 1,190,181 97,119 1,287,300 1,237,788

1,237,788 1,287,300 1,237,788 49,512 1,287,300 -

The company has been engaged in consultancy business since 2008 E.C. Under this
category, it offers all-rounded business consultancy and IT solutions to different local
and international organizations. Besides, it is an agent of Arada beer. It distributes the
beer to four major areas in Addis Ababa. It is already generating profit and the cash

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 flow is high.

However, related to the loan request, financial projection made to the next ten years.
The assumptions hereunder are made based on the latest financial statement of the
company on hand.

Here is basic assumptions to the financial projection:

- Wages and salaries expense stands at 406,271 and it’s assumed to increase at 5%
rate per annum.

- Fuel and lubricants stands at 499,200 and it’s assumed to rise at 5% rate per
annum.

- Rent expense stands at 92,784 and it’s assumed to rise at 10% rate per annum.

- Sales and Marketing expense stand at 40,809 and it’s assumed to increase at 20%
rate per annum.

- Utilities expense stands at 27,569 and it’s assumed to rise at 20% rate per annum.

- Repair and maintenance expense stands at 595,047 and it is assumed to remain the
same the entire span of the project.

- Insurance expense stands at 161,924 and it is assumed to remain the same the
entire span of the project.

- Miscellaneous expense stands at 13,636 it’s assumed to rise at 10% rate per
annum.

- The sales revenue stands at 91,045,712 and it is assumed to increase at 5.3% rate
per annum.

- Cost of sales stands at 72,049,031 and it is assumed to increase at 2.9% rate per
annum.

- As the coverage of the beer gets wider, the production will go under economies of

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 scale and unit cost of production will be minimized. As a matter of fact, when the
sales grow, the unit cost will get decreasing.

- Written down value method of depreciation is employed for office equipment,

vehicle and computer and accessories whereas straight line method of depreciation
is employed for building but the building in this case is excluded due to its assigned
purpose is out of the two business i.e., management consulting/IT solutions and
Beer distribution.

- The stock management system as it is concerned to the beer distribution, we follow

the first in first out method so that the beer will be reached to the retailers shop
getting intact of its consumable standard.

- The company’s payment term with the supplier is on cash basis with almost no
room for credit arrangement.

The detail projection of income and cash flow is illustrated here under. The NPV and
IRR are calculated. Income statement and cash flow statement with sensitivity analysis
are also demonstrated.

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 Normal Scenario Income Statement
Description -
1 2 3 4 5 6 7 8 9 10
Revenue
91,045,712 95,871,135 100,952,305 106,302,777 111,936,824 117,869,476 124,116,558 130,694,736 137,621,557 144,915,499 152,596,021
Sales Revenue
91,045,712 95,871,135 100,952,305 106,302,777 111,936,824 117,869,476 124,116,558 130,694,736 137,621,557 144,915,499 152,596,021
Cost of Sales
70,049,031 72,080,453 74,170,786 76,321,739 78,535,069 80,812,586 83,156,151 85,567,680 88,049,142 90,602,567 93,230,042
Gross Profit
20,996,681 23,790,682 26,781,519 29,981,038 33,401,755 37,056,890 40,960,407 45,127,056 49,572,414 54,312,932 59,365,979
Operating
Expenses 3,265,105 3,406,089 3,556,706 3,717,901 3,890,754 4,076,502 4,276,570 4,492,602 4,726,505 4,980,489 5,257,134
Wages and
Salaries 1,834,136 1,925,843 2,022,135 2,123,242 2,229,404 2,340,874 2,457,918 2,580,814 2,709,854 2,845,347 2,987,614
Utilities
27,569 33,083 39,699 47,639 57,167 68,600 82,321 98,785 118,542 142,250 170,700
Fuel and
Lubricants 499,200 524,160 550,368 577,886 606,781 637,120 668,976 702,425 737,546 774,423 813,144
Repair and
Maintenance 595,047 595,047 595,047 595,047 595,047 595,047 595,047 595,047 595,047 595,047 595,047
Insurance
161,924 161,924 161,924 161,924 161,924 161,924 161,924 161,924 161,924 161,924 161,924
Sales and
Marketing 40,809 48,971 58,765 70,518 84,622 101,546 121,855 146,226 175,471 210,565 252,679

Rent Expense
92,784 102,062 112,269 123,496 135,845 149,430 164,373 180,810 198,891 218,780 240,658
Miscellaneous
Expense 13,636 15,000 16,500 18,150 19,964 21,961 24,157 26,573 29,230 32,153 35,368
Profit Before
IT 17,731,576 20,384,592 23,224,812 26,263,137 29,511,001 32,980,388 36,683,837 40,634,454 44,845,910 49,332,442 54,108,845
Less: Bank
Charges and
491,048 2,230,605 1,734,857 1,954,902 1,276,436 800,000 800,000 800,000 800,000 800,000 800,000
Interest
Profit Before
Tax 17,240,528 18,153,987 21,489,955 24,308,235 28,234,565 32,180,388 35,883,837 39,834,454 44,045,910 48,532,442 53,308,845
Less: Income
Tax (30%) 5,164,208 5,446,196 6,446,987 7,292,471 8,470,370 9,654,116 10,765,151 11,950,336 13,213,773 14,559,733 15,992,653
Net Profit
12,076,320 12,707,791 15,042,969 17,015,765 19,764,196 22,526,272 25,118,686 27,884,118 30,832,137 33,972,710 37,316,191

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 Normal Scenario – Cash Flow
Description 0 1 2 3 4 5 6 7 8 9 10
Cash Inflows
Owner's Equity 28,169,684
Bank Loan 34,850,426

Net Profit
12,707,791 15,042,969 17,015,765 19,764,196 22,526,272 25,118,686 27,884,118 30,832,137 33,972,710 37,316,191
Depreciation
Total Cash
63,020,110 12,707,791 15,042,969 17,015,765 19,764,196 22,526,272 25,118,686 27,884,118 30,832,137 33,972,710 37,316,191
Inflows
Cash out Flows
Fixed assets 14,566,249
Working Capital 30,000,000

Loan Repayment -
2,918,595 3,414,343 3,994,298 4,672,764 -
Dividend 0 0 0 0
Total Cash
44,566,249 2,918,595 3,414,343 3,994,298 4,672,764 0 0 0 0 0 0
Outflows
-
Net Cash Flow 9,789,196 11,628,626 13,021,466 15,091,432 22,526,272 25,118,686 27,884,118 30,832,137 33,972,710 37,316,191
44,566,249
Cumulative Cash
9,789,196 21,417,822 34,439,289 49,530,720 72,056,992 97,175,678 125,059,796 155,891,933 189,864,642 227,180,834
Balance

NPV 91,455,918
IRR 34%

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Income Statement Revenue Decrease by 10 %

Description
1 2 3 4 5 6 7 8 9 10 11
Sales Revenue
81,941,141 86,284,021 90,857,074 95,672,499 100,743,142 106,082,528 111,704,902 117,625,262 123,859,401 130,423,949 137,336,419
Cost of Sales
70,049,031 72,080,453 74,170,786 76,321,739 78,535,069 80,812,586 83,156,151 85,567,680 88,049,142 90,602,567 93,230,042
Gross Profit
11,892,110 14,203,568 16,686,288 19,350,761 22,208,073 25,269,942 28,548,751 32,057,582 35,810,259 39,821,382 44,106,377
Operating
Expenses 3,265,105 3,406,089 3,556,706 3,717,901 3,890,754 4,076,502 4,276,570 4,492,602 4,726,505 4,980,489 5,257,134

Profit Before IT
8,627,005 10,797,479 13,129,582 15,632,859 18,317,319 21,193,441 24,272,182 27,564,980 31,083,754 34,840,893 38,849,243
Less: Bank
Charges and
491,048 2,230,605 1,734,857 1,954,902 1,276,436 800,000 800,000 800,000 800,000 800,000 800,000
Interest
Profit Before
Tax 8,135,957 8,566,874 11,394,725 13,677,958 17,040,883 20,393,441 23,472,182 26,764,980 30,283,754 34,040,893 38,049,243
Less: Income
Tax (30%) 2,432,837 3,410,467 4,095,437 5,104,315 6,110,082 7,033,704 8,021,544 9,077,176 10,204,318 11,406,823

Net Profit
5,703,120 8,566,874 7,984,257 9,582,520 11,936,568 14,283,358 16,438,477 18,743,436 21,206,578 23,836,575 26,642,420

18
Cash flow Statement Revenue Decrease by 10 %
Description 0 1 2 3 4 5 6 7 8 9 10
Cash Inflows
Owner's Equity 28,169,684
Bank Loan 34,850,426

Net Profit
5,703,120 8,566,874 7,984,257 9,582,520 11,936,568 14,283,358 16,438,477 18,743,436 21,206,578 23,836,575
Depreciation 0 0 0 0 0 0 0 0 0 0
Total Cash
63,020,110 5,703,120 8,566,874 7,984,257 9,582,520 11,936,568 14,283,358 16,438,477 18,743,436 21,206,578 23,836,575
Inflows
Cash out Flows
Fixed assets 14,566,249
Working Capital 30,000,000
Loan Repayment 0 2,918,595 3,414,343 3,994,298 4,672,764 0 0 0 0 0 0
Dividend 0 0 0 0
Total Cash
44,566,249 2,918,595 3,414,343 3,994,298 4,672,764
Outflows
-
Net Cash Flow 2,784,525 5,152,531 3,989,959 4,909,756 11,936,567 14,283,356 16,438,474 18,743,432 21,206,573 23,836,569
44,566,249
Cumulative Cash
2,784,525 7,937,056 11,927,015 16,836,771 28,773,338 43,056,695 59,495,169 78,238,601 99,445,174 123,281,742
Balance

NPV $45,556,415
IRR 16%

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Income Statement - Cost increase by 10 %

Description
1 2 3 4 5 6 7 8 9 10 11
Sales Revenue
91,045,712 95,871,135 100,952,305 106,302,777 111,936,824 117,869,476 124,116,558 130,694,736 137,621,557 144,915,499 152,596,021
Cost of Sales
77,053,934 79,288,498 81,587,865 83,953,913 86,388,576 88,893,845 91,471,766 94,124,448 96,854,057 99,662,824 102,553,046
Gross Profit
13,991,778 16,582,637 19,364,440 22,348,864 25,548,248 28,975,631 32,644,792 36,570,288 40,767,500 45,252,675 50,042,975
Operating
Expenses 3,265,105 3,406,089 3,556,706 3,717,901 3,890,754 4,076,502 4,276,570 4,492,602 4,726,505 4,980,489 5,257,134
Profit Before
IT 10,726,673 13,176,547 15,807,734 18,630,963 21,657,494 24,899,129 28,368,222 32,077,686 36,040,996 40,272,186 44,785,840
Less: Bank
Charges and
491,048 2,230,605 1,734,857 1,954,902 1,276,436 800,000 800,000 800,000 800,000 800,000 800,000
Interest
Profit Before
Tax 10,235,625 10,945,942 14,072,877 16,676,061 20,381,059 24,099,129 27,568,222 31,277,686 35,240,996 39,472,186 43,985,840
Less: Income
Tax (30%) 3,062,737 3,275,833 4,213,913 4,994,868 6,106,368 7,221,789 8,262,517 9,375,356 10,564,349 11,833,706 13,187,802
Net Profit
7,172,887 7,670,109 9,858,964 11,681,193 14,274,691 16,877,341 19,305,706 21,902,330 24,676,647 27,638,480 30,798,038
Cumulative
Profit 14,842,997 24,701,960 36,383,153 50,657,844 67,535,185 86,840,891 108,743,221 133,419,868 161,058,348 191,856,386

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Cash Flow Statement - Cost increase by 10 %
Description 0 1 2 3 4 5 6 7 8 9 10
Cash Inflows
Owner's
28,169,684
Equity
Bank Loan 34,850,426

Net Profit
7,172,887 7,670,109 9,858,964 11,681,193 14,274,691 16,877,341 19,305,706 21,902,330 24,676,647 27,638,480
Depreciation -
- - - - - - - - -
Total Cash
63,020,110 7,172,887 7,670,109 9,858,964 11,681,193 14,274,691 16,877,341 19,305,706 21,902,330 24,676,647 27,638,480
Inflows
Cash out
Flows
Fixed assets 14,566,249
Working
30,000,000
Capital
Loan
-
Repayment 2,918,595 3,414,343 3,994,298 4,672,764 - - - - -
Dividend 0 0 0 0

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 Total Cash
44,566,249 2,918,595 3,414,343 3,994,298 4,672,764
Outflows
-
Net Cash Flow 4,254,293 4,255,766 5,864,665 7,008,429 14,274,690 16,877,339 19,305,703 21,902,326 24,676,642 27,638,474
44,566,249
Cumulative
4,254,293 8,510,059 14,374,725 21,383,153 35,657,843 52,535,182 71,840,885 93,743,211 118,419,853 146,058,327
Cash Balance

NPV $54,447,376
IRR 20%

Income Statement - Revenue Decrease by 5% Cost Increase by 5%

Description -
1 2 3 4 5 6 7 8 9 10
Sales Revenue
86,493,426 91,077,578 95,904,690 100,987,638 106,339,983 111,976,002 117,910,730 124,159,999 130,740,479 137,669,724 144,966,220
Cost of Sales
73,551,483 75,684,476 77,879,325 80,137,826 82,461,823 84,853,216 87,313,959 89,846,064 92,451,599 95,132,696 97,891,544
Gross Profit
12,941,944 15,393,102 18,025,364 20,849,812 23,878,160 27,122,787 30,596,771 34,313,935 38,288,879 42,537,028 47,074,676
Operating
Expenses 3,265,105 3,406,089 3,556,706 3,717,901 3,890,754 4,076,502 4,276,570 4,492,602 4,726,505 4,980,489 5,257,134
Profit Before
IT 9,676,839 11,987,013 14,468,658 17,131,911 19,987,407 23,046,285 26,320,202 29,821,333 33,562,375 37,556,539 41,817,541
Less: Bank
Charges and
491,048 2,230,605 1,734,857 1,954,902 1,276,436 800,000 800,000 800,000 800,000 800,000 800,000
Interest

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Profit Before
Tax 9,185,791 9,756,408 12,733,801 15,177,009 18,710,971 22,246,285 25,520,202 29,021,333 32,762,375 36,756,539 41,017,541
Less: Income
Tax (30%) 2,747,787 2,918,972 3,812,190 4,545,153 5,605,341 6,665,935 7,648,111 8,698,450 9,820,762 11,019,012 12,297,312

Net Profit
6,438,004 6,837,435 8,921,611 10,631,857 13,105,630 15,580,349 17,872,091 20,322,883 22,941,612 25,737,527 28,720,229
Cumulative
Profit 13,275,439 22,197,050 32,828,906 45,934,536 61,514,885 79,386,977 99,709,860 122,651,472 148,388,999 177,109,229

Cash Flow Statement - Revenue Decrease by 5% Cost Increase by 5%

Description 0 1 2 3 4 5 6 7 8 9 10
Cash Inflows
Owner's Equity 28,169,684
Bank Loan 34,850,426

Net Profit
6,438,004 6,837,435 8,921,611 10,631,857 13,105,630 15,580,349 17,872,091 20,322,883 22,941,612 25,737,527
Total Cash
63,020,110 6,438,004 6,837,435 8,921,611 10,631,857 13,105,630 15,580,349 17,872,091 20,322,883 22,941,612 25,737,527
Inflows
Cash out Flows
Fixed assets 14,566,249

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Working Capital 30,000,000

Loan Repayment -
2,918,595 3,414,343 3,994,298 4,672,764 - - - - -
Dividend 0 0 0 0 0 0 0 0 0 0
Total Cash
44,566,249 2,918,595 3,414,343 3,994,298 4,672,764 0 0 0 0 0 0
Outflows
-
Net Cash Flow 3,519,409 3,423,092 4,927,312 5,959,093 13,105,630 15,580,349 17,872,091 20,322,883 22,941,612 25,737,527
44,566,249
Cumulative Cash
3,519,409 6,942,501 11,869,814 17,828,906 30,934,536 46,514,885 64,386,977 84,709,860 107,651,472 133,388,999
Balance

NPV $49,049,868
IRR 18%

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To sum up, income and cash flow projection made on the basis of valid assumptions for the next
decade. It is proven to keep the profitable trajectory of the business in the periods ahead. The
NPV is positive enough and the IRR is higher than the cost of capital. The business has passed
sensitivity test in cases if matters went badly out of the intended way.

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