Download - Cosmetic Product Producing Plant
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Investment Office ANRS
Project Profile on the Establishment
of Cosmetic product Producingplant
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Tables of Contents
1.Executive Summary.....................................................................................................................................1
2.Product Description and Application........................................................................................................1
3.Market Study, Plant Capacity and Production Program........................................................................2
3.1Market Study...........................................................................................................................................2
3.1.1Present Demand and Supply...........................................................................................................2
3.1.2Projected Demand..........................................................................................................................2
3.1.3Pricing and Distribution.................................................................................................................3
3.2Plant Capacity.........................................................................................................................................3
3.3Production Program................................................................................................................................4
4.Raw Materials and Utilities........................................................................................................................44.1Availability and Source of Raw materials..............................................................................................4
4.2Annual Requirement and Cost of Raw Materials and Utilities...............................................................4
5.Location and Site.........................................................................................................................................5
6.Technology and Engineering .....................................................................................................................5
6.1.Production Process.................................................................................................................................5
6.2.Machinery and Equipment.....................................................................................................................5
6.3.Civil Engineering Cost...........................................................................................................................6
7.Human Resource and Training Requirement...........................................................................................7
7.1.Human Resource ...................................................................................................................................7
7.2.Training Requirement............................................................................................................................8
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1. Executive Summary
This project profile deals with the establishment of cosmetic product producing plant in Amhara
National Regional State. The following presents the main findings of the study
Demand projection divulges that the domestic demand for this product is substantial and is
increasing with time. Accordingly, the planned plant is set to produce 30,000 bottles of vanishing
cream, 120,000 Kg of Soap and 500kg of face powder annually. The total investment cost of the
project including working capital is estimated at Birr 16.75 million and creates 61 jobs and Birr
573,120 household income.
The financial result indicates that the project generates profit beginning from the second year of
operation. Moreover, the project breaks even at 30.7% of capacity utilization and it payback fully
the initial investment less working capital in fourth year of its operation. The results further show
that the calculated IRR of the project is 20.9%.
In addition to this, the proposed project possesses wide range of economic and social benefits
such as increasing the level of investment, tax revenue, employment creation and import
substitution.
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cream, hair fixer, after shave. Cosmetics for teeth include tooth powder and tooth paste.
Different cosmetics require different ingredients and different preparation formulas.
3. Market Study, Plant Capacity and Production Program
3.1Market Study
3.1.1 Present Demand and Supply
The Amhara Region is home to about 19.2 million people. In countries where the standard of
living is high, 19.2 million people could have supported a multi-million dodder cosmetics
industry. However, since the standard of living of the people in the Amhara Region is very low
the market for cosmetics is limited to few brands like Vaseline, vanishing cream, cold cream,
hair oils. These cosmetics products are widely used in the urban areas and to some extent in
rural areas. Other cosmetics products such as tooth paste, nail polish, after shave, shaving cream,
etc. are used by people of higher income in the urban areas of the Region. Women are the main
consumers of many types of cosmetics products. Potential customers of cosmetics products in
the Amhara Region are girls and women above age of 5. The number of female in this age group
in the Region is about 8 million of whom 11.5 percent or 921,000 live in urban areas. If we
assume that at least 70 percent of the urban potential customers and 40 percent of the rural
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Table 1: Projected Demand for Cosmetic Products
YearProjected Demand
for Cosmetics
(in tons)2007/08 1,400
2008/09 1449
2009/10 1500
2010/11 1552
2011/12 1607
2012/13 1663
2013/14 1721
2014/15 1781
2015/16 1844
2016/17 1908
2017/18 19752018/19 2044
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3.3Production Program
The program is scheduled based on the consideration that the envisaged plant will work 275 daysin a year in 2 shifts, where the remaining days will be holidays and for maintenance. During the
first year of operation the plant will operate at 75 percent capacity and then it grows to 85
percent in the 2nd year. The capacity will grow to 100 percent starting from the 3rd year. This
consideration is developed based on the assumption that market and logistics barriers would take
place for the first two years of operation.
4. Raw Materials and Utilities
4.1 Availability and Source of Raw materials
Different cosmetics use different types of inputs with varying proportions. Basically there are
about six types of inputs which constitute the components of many types of cosmetics. These are
waxes, fatty acids, vitamin zed oil, lecithin bentonite and petroleum jelly or Vaseline.
Depending on the type of cosmetics to be made, other inputs are also added to the basic
ingredients. Some of the main inputs such as wax, fatty acids can be obtained from domestic
sources; others have to be imported.
4.2 Annual Requirement and Cost of Raw Materials and
Utilities
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Vitamin zed oil 22000 0 1,140
Lecithin bentonite 27500 0 1,482
Petroleum jelly 30250 0 1,254
Total Material Cost 1,254 3,876
Utility 6
Electricity 26.4
Furnace Oil 24
Water 5.3
Total Utility Cost 40,1
5. Location and Site
The appropriate locations for the envisaged project in view of the availability of input,
infrastructures as well as market for the output are Combolcha and Bahir Dar.
6. Technology and Engineering
6.1. Production Process
The formulation and production processes of different groups of cosmetics are different. Hence,
since there is no one common process for all cosmetics, no process description is given in this
section.
6 2 Machinery and Equipment
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toothpaste per year, total investment will be: 1.5 million. However this plant is only planned to
produce three main products i.e. Soap, Vanishing Cream and Face powder.
The machineries and equipment required for producing the stated product is detailed in Table 3
below.
Table 3: Machinery and Equipments
The, total cost of machinery and equipment including freight insurance and bank cost is
estimated to be about Birr 1.05 million.
Machinery and Equipment Quantity
Heating equipments 5
Equipment for creams 5
Equipment for liquids 4
Total 14
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The total site area for the envisaged plant is estimated to be 3,000m2 where 1200m2 is allocated
to the production place and the remaining space is left for stores (900m 2), office buildings and
facilities (500m2).The land lease cost is estimated at Birr 180,000. The civil engineering and
building costs is estimated at Birr 2.4 million.
7. Human Resource and Training Requirement
7.1. Human Resource
The list of required manpower for the envisaged plant is stated in Table 4 below
Table 4: Human Resource Requirements
Position No. Required
MonthlySalary/Wag
e
(in Birr)
TotalAnnual
Salary
(in Birr)
General Manager 1 3500 42,000
Mechanical Engineer 1 2500 30,000
Administration 1 2000 24,000
Accountant 2 1200 28,800
Secretary 3 850 30,600
Sales Clerk 5 700 42,000
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The envisaged plant therefore, creates 61 jobs and about Birr 573120 of household income. The
professionals and support staffs for the envisaged plant shall be recruited from Amhara region
7.2. Training Requirement
Training of key personnel shall be conducted. This can be arranged with the suppliers of the
plant machineries. The training should primarily focuses on the production technology and
machinery maintenance and trouble shooting. Birr 90,000 is allocated as training expense in the
working capital.
8. Financial Analysis
8.1. Underlying Assumption
The financial analysis of Cosmetics producing plant is based on the data provided in the
preceding chapters and the following assumptions.
A. Construction and Finance
Construction period 2 year
Source of finance 40% equity and 60% loan
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Pre-production (amortization) 20%
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C. Working Capital (Minimum Days of Coverage)
Raw Material-Local 30
Raw Material-Foreign 120
Factory Supplies in Stock 30
Spare Parts in Stock and Maintenance 30
Work in Progress 10
Finished Products 15
Accounts Receivable 30
Cash in Hand 30
Accounts Payable 30
8.2. Investment
The total investment cost of the project including working capital is estimated at Birr 16.75
million as shown in Table 5 below. The Owner shall contribute 40% of the finance in the form of
equity while the remaining 60% is to be financed by bank loan.
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Table 5: Total Initial Investments
Total Initial Investment
Item Cost
Land 9,000.00
Building and civil works 2,400,000.00
Office equipment 100,000.00
Vehicles 500,000.00
Plant machinery & equipment 10,500,000.00
Total Fixed Investment 13,509,000.00
Pre production capital expenditure 675,450.00
Total Initial Investment 14,184,450.00
Working capital at full capacity2,566,343.00
Total 16,750,793.00
*Pre-production capital expenditure includes - all expenses for pre-
investment studies, consultancy fee during construction andexpenses for companys establishment, project administration
expenses, commission expenses, preproduction marketing and
interest expenses during construction.
The foreign component of the project accounts for Birr 19.1 million or 72% of the total
investment cost.
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Table 6: Production Cost
Total Production Cost at Full Capacity
Items Cost
1. Raw materials 5,130,000.00
2. Utilities 40,100.00
3. Wages and Salaries 573,120.00
4. Spares and Maintenance 405,270.00
Factory costs 6,148,490.00
5. Depreciation 1,415,090.00
6. Financial costs1,206,057.10
Total Production Cost
8,769,637.10
8.4. Financial evaluation
I. Profitability
According to the projected income statement attached in the annex part the project will generate
profit beginning from the Second year of operation. Ratios such as the percentage of net profit to
l l i d l i 0 3 % 16 33% d 0 4 % i h
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III. Payback Period
Investment cost and income statement projection are used in estimating the project payback
period. The projects will payback fully the initial investment less working capital in second year.
IV. Simple Rate of Return
For the envisaged plant the simple rate of return equals to 17.9%.
V. Internal Rate of Return and Net Present Value
Based on cash flow statement described in the annex part, the calculated IRR of the project is
20.9% and the net present value at 18 % discount is Birr 1.67 million.
VI. Sensitivity Analysis
The envisaged plant is profitable even with considerable cost increment. That is the plant
maintains to be profitable starting from the first year when 10 % cost increment takes place in
the sector. This result is accompanied by IRR value of 21.55 % with payback period of third
year.
9 Economic and Social Benefit and Justification
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B. Tax Revenue
In the project life under consideration, the region will collect about Birr 7.77 million from
corporate tax payment alone (i.e. excluding income tax, sales tax and VAT). Such result create
additional fund for the regional government that will be used in expanding social and other basic
services in the region
C. Import Substitution and Foreign Exchange Saving
Based on the projected figure we learn that in the project life an estimated amount of US Dollar
10.9 million will be saved as a result of the proposed project. This will create a room for the
saved hard currency to be allocated on other vital and strategic sectors
D. Employment and Income Generation
The proposed project is expected to create employment opportunity to several citizens of the
region. That is, it will provide permanent employment to 61 professionals as well as support
stuffs. Consequently the project creates income of Birr 573,120 per year. This would be one of
the commendable accomplishments of the project.
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ANNEXES
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Annex 1: Total Net Working Capital Requirements (in Birr)
CONSTRUCTION PRODUCTION
Year 1 Year 2 1 2 3 4
Capacity Utilization (%) 0 0 75% 85% 100% 100%
1. Total Inventory 0 0 3,245,694 3,678,453 4,327,592 4,327,592
Raw Materials in Stock- Total 0 0 1,371,109 1,553,924 1,828,145 1,828,145
Raw Material-Local 0 0 102,600 116,280 136,800 136,800
Raw Material-Foreign 0 0 1,268,509 1,437,644 1,691,345 1,691,345
Factory Supplies in Stock 0 0 6,188 7,014 8,251 8,251
Spare Parts in Stock and Maintenance 0 0 33,158 37,580 44,211 44,211
Work in Progress 0 0 154,710 175,338 206,279 206,279
Finished Products 0 0 309,419 350,675 412,559 412,559
2. Accounts Receivable 0 0 932,727 1,057,091 1,243,636 1,243,636
3. Cash in Hand 0 0 50,173 56,862 66,897 66,897
CURRENT ASSETS 0 0 2,857,485 3,238,482 3,809,979 3,809,979
4. Current Liabilities 0 0 932,727 1,057,091 1,243,636 1,243,636
Accounts Payable 0 0 932,727 1,057,091 1,243,636 1,243,636
TOTAL NET WORKING CAPITAL REQUIREMENTS 0 0 1,924,757 2,181,392 2,566,343 2,566,343
INCREASE IN NET WORKING CAPITAL 0 0 1,924,757 256,634 384,951 0
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Annex 1: Total Net Working Capital Requirements (in Birr) (continued)
PRODUCTION
5 6 7 8 9 10
Capacity Utilization (%) 100% 100% 100% 100% 100% 100%
1. Total Inventory 4,327,592 4,327,592 4,327,592 4,327,592 4,327,592 4,327,592
Raw Materials in Stock-Total 1,828,145 1,828,145 1,828,145 1,828,145 1,828,145 1,828,145
Raw Material-Local 136,800 136,800 136,800 136,800 136,800 136,800
Raw Material-Foreign 1,691,345 1,691,345 1,691,345 1,691,345 1,691,345 1,691,345
Factory Supplies in Stock 8,251 8,251 8,251 8,251 8,251 8,251
Spare Parts in Stock and Maintenance 44,211 44,211 44,211 44,211 44,211 44,211
Work in Progress 206,279 206,279 206,279 206,279 206,279 206,279
Finished Products 412,559 412,559 412,559 412,559 412,559 412,559
2. Accounts Receivable 1,243,636 1,243,636 1,243,636 1,243,636 1,243,636 1,243,636
3. Cash in Hand 66,897 66,897 66,897 66,897 66,897 66,897
CURRENT ASSETS 3,809,979 3,809,979 3,809,979 3,809,979 3,809,979 3,809,979
4. Current Liabilities 1,243,636 1,243,636 1,243,636 1,243,636 1,243,636 1,243,636
Accounts Payable 1,243,636 1,243,636 1,243,636 1,243,636 1,243,636 1,243,636
TOTAL NET WORKING CAPITAL REQUIREMENTS 2,566,343 2,566,343 2,566,343 2,566,343 2,566,343 2,566,343
INCREASE IN NET WORKING CAPITAL 0 0 0 0 0 0
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Annex 2: Cash Flow Statement (in Birr)
CONSTRUCTION PRODUCTION
Year 1 Year 2 1 2 3 4
TOTAL CASH INFLOW 7,092,225 9,658,568 9,482,727 9,814,364 11,586,545 11,400,000
1. Inflow Funds 7,092,225 9,658,568 932,727 124,364 186,545 0
Total Equity 2,836,890 3,863,427 0 0 0 0
Total Long Term Loan 4,255,335 5,795,141 0 0 0 0
Total Short Term Finances 0 0 932,727 124,364 186,545 0
2. Inflow Operation 0 0 8,550,000 9,690,000 11,400,000 11,400,000
Sales Revenue 0 0 8,550,000 9,690,000 11,400,000 11,400,000
Interest on Securities 0 0 0 0 0 03. Other Income 0 0 0 0 0 0
TOTAL CASH OUTFLOW 7,092,225 7,092,225 10,023,818 8,347,527 10,116,337 9,404,134
4. Increase In Fixed Assets 7,092,225 7,092,225 0 0 0 0
Fixed Investments 6,754,500 6,754,500 0 0 0 0
Pre-production Expenditures 337,725 337,725 0 0 0 0
5. Increase in Current Assets 0 0 2,857,485 380,998 571,497 0
6. Operating Costs 0 0 4,503,507 5,085,392 5,958,221 5,958,221
7. Corporate Tax Paid 0 0 0 0 906,492 966,795
8. Interest Paid 0 0 2,662,827 1,206,057 1,005,048 804,038
9. Loan Repayments 0 0 0 1,675,079 1,675,079 1,675,079
10. Dividends Paid 0 0 0 0 0 0
Surplus (Deficit) 0 2,566,343 -541,091 1,466,837 1,470,208 1,995,866
Cumulative Cash Balance 0 2,566,343 2,025,252 3,492,089 4,962,297 6,958,164
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Annex 2: Cash Flow Statement (in Birr): Continued
PRODUCTION
5 6 7 8 9 10TOTAL CASH INFLOW 11,400,000 11,400,000 11,400,000 11,400,000 11,400,000 11,400,000
1. Inflow Funds 0 0 0 0 0 0
Total Equity 0 0 0 0 0 0
Total Long Term Loan 0 0 0 0 0 0
Total Short Term Finances 0 0 0 0 0 0
2. Inflow Operation 11,400,000 11,400,000 11,400,000 11,400,000 11,400,000 11,400,000
Sales Revenue 11,400,000 11,400,000 11,400,000 11,400,000 11,400,000 11,400,000
Interest on Securities 0 0 0 0 0 0
3. Other Income 0 0 0 0 0 0
TOTAL CASH OUTFLOW 9,263,427 9,193,247 9,052,541 7,236,755 7,236,755 7,236,755
4. Increase In Fixed Assets 0 0 0 0 0 0
Fixed Investments 0 0 0 0 0 0
Pre-production Expenditures 0 0 0 0 0 0
5. Increase in Current Assets 0 0 0 0 0 0
6. Operating Costs 5,958,221 5,958,221 5,958,221 5,958,221 5,958,221 5,958,221
7. Corporate Tax Paid 1,027,098 1,157,928 1,218,231 1,278,534 1,278,534 1,278,534
8. Interest Paid 603,029 402,019 201,010 0 0 09. Loan Repayments 1,675,079 1,675,079 1,675,079 0 0 0
10. Dividends Paid 0 0 0 0 0 0
Surplus (Deficit) 2,136,573 2,206,753 2,347,459 4,163,245 4,163,245 4,163,245
Cumulative Cash Balance 9,094,737 11,301,490 13,648,949 17,812,194 21,975,440 26,138,685
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Annex 3: DISCOUNTED CASH FLOW-TOTAL CAPITAL INVESTED
CONSTRUCTION PRODUCTION
Year 1 Year 2 1 2 3 4
TOTAL CASH INFLOW 0 0 8,550,000 9,690,000 11,400,000 11,400,000
1. Inflow Operation 0 0 8,550,000 9,690,000 11,400,000 11,400,000
Sales Revenue 0 0 8,550,000 9,690,000 11,400,000 11,400,000
Interest on Securities 0 0 0 0 0 0
2. Other Income 0 0 0 0 0 0
TOTAL CASH OUTFLOW 7,092,225 7,092,225 6,428,264 5,342,027 7,249,665 6,925,016
3. Increase in Fixed Assets 7,092,225 7,092,225 0 0 0 0
Fixed Investments 6,754,500 6,754,500 0 0 0 0
Pre-production Expenditures 337,725 337,725 0 0 0 0
4. Increase in Net Working Capital 0 0 1,924,757 256,634 384,951 0
5. Operating Costs 0 0 4,503,507 5,085,392 5,958,221 5,958,221
6. Corporate Tax Paid 0 0 0 0 906,492 966,795
NET CASH FLOW -7,092,225 -7,092,225 2,121,736 4,347,973 4,150,335 4,474,984
CUMULATIVE NET CASH FLOW -7,092,225 -14,184,450 -12,062,714 -7,714,741 -3,564,406 910,578
Net Present Value (at 18%) -7,092,225 -6,010,360 1,523,798 2,646,311 2,140,697 1,956,057
Cumulative Net present Value -7,092,225 -13,102,585 -11,578,787 -8,932,477 -6,791,780 -4,835,723
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Annex 3: DISCOUNTED CASH FLOW-TOTAL CAPITAL INVESTED (Continued)
PRODUCTION
5 6 7 8 9 10
TOTAL CASH INFLOW 11,400,000 11,400,000 11,400,000 11,400,000 11,400,000 11,400,000
1. Inflow Operation 11,400,000 11,400,000 11,400,000 11,400,000 11,400,000 11,400,000
Sales Revenue 11,400,000 11,400,000 11,400,000 11,400,000 11,400,000 11,400,000
Interest on Securities 0 0 0 0 0 0
2. Other Income 0 0 0 0 0 0
TOTAL CASH OUTFLOW 6,985,319 7,116,149 7,176,452 7,236,755 7,236,755 7,236,755
3. Increase in Fixed Assets 0 0 0 0 0 0
Fixed Investments 0 0 0 0 0 0
Pre-production Expenditures 0 0 0 0 0 0
4. Increase in Net Working Capital 0 0 0 0 0 0
5. Operating Costs 5,958,221 5,958,221 5,958,221 5,958,221 5,958,221 5,958,221
6. Corporate Tax Paid 1,027,098 1,157,928 1,218,231 1,278,534 1,278,534 1,278,534
NET CASH FLOW 4,414,681 4,283,851 4,223,548 4,163,245 4,163,245 4,163,245
CUMULATIVE NET CASH FLOW 5,325,259 9,609,110 13,832,659 17,995,904 22,159,150 26,322,395
Net Present Value (at 18%) 1,635,337 1,344,808 1,123,625 938,629 795,448 674,109
Cumulative Net present Value -3,200,386 -1,855,578 -731,953 206,676 1,002,124 1,676,233
Net Present Value (at 18%) 1,676,232.89
Internal Rate of Return 20.9%
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Annex 4: NET INCOME STATEMENT ( in Birr)
PRODUCTION
1 2 3 4 5
Capacity Utilization (%) 75% 85% 100% 100% 100%
1. Total Income 8,550,000 9,690,000 11,400,000 11,400,000 11,400,000
Sales Revenue 8,550,000 9,690,000 11,400,000 11,400,000 11,400,000
Other Income 0 0 0 0 0
2. Less Variable Cost 4,192,206 4,751,167 5,589,608 5,589,608 5,589,608
VARIABLE MARGIN 4,357,794 4,938,833 5,810,392 5,810,392 5,810,392
(In % of Total Income) 50.97 50.97 50.97 50.97 50.97
3. Less Fixed Costs 1,726,391 1,749,316 1,783,703 1,783,703 1,783,703
OPERATIONAL MARGIN 2,631,403 3,189,518 4,026,689 4,026,689 4,026,689
(In % of Total Income) 30.78 32.92 35.32 35.32 35.32
4. Less Cost of Finance 2,662,827.11 1,206,057.10 1,005,047.58 804,038.06 603,028.55
5. GROSS PROFIT -31,423.96 1,983,460.47 3,021,641.62 3,222,651.14 3,423,660.65
6. Income (Corporate) Tax 0.00 0.00 906,492.49 966,795.34 1,027,098.20
7. NET PROFIT -31,423.96 1,983,460.47 2,115,149.13 2,255,855.80 2,396,562.46
RATIOS (%)
Gross Profit/Sales -0.37% 20.47% 26.51% 28.27% 30.03%
Net Profit After Tax/Sales -0.37% 20.47% 18.55% 19.79% 21.02%
Return on Investment 16.33% 19.49% 18.63% 18.27% 17.91%
Return on Equity -0.47% 29.60% 31.57% 33.67% 35.77%
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Annex 4: NET INCOME STATEMENT (in Birr): Continued
PRODUCTION
6 7 8 9 10
Capacity Utilization (%) 100% 100% 100% 100% 100%
1. Total Income 11,400,000 11,400,000 11,400,000 11,400,000 11,400,000
Sales Revenue 11,400,000 11,400,000 11,400,000 11,400,000 11,400,000
Other Income 0 0 0 0 0
2. Less Variable Cost 5,589,608 5,589,608 5,589,608 5,589,608 5,589,608
VARIABLE MARGIN 5,810,392 5,810,392 5,810,392 5,810,392 5,810,392
(In % of Total Income) 50.97 50.97 50.97 50.97 50.97
3. Less Fixed Costs 1,548,613 1,548,613 1,548,613 1,548,613 1,548,613
OPERATIONAL MARGIN 4,261,779 4,261,779 4,261,779 4,261,779 4,261,779
(In % of Total Income) 37.38 37.38 37.38 37.38 37.38
4. Less Cost of Finance 402,019 201,010 0 0 0
5. GROSS PROFIT 3,859,760 4,060,770 4,261,779 4,261,779 4,261,779
6. Income (Corporate) Tax 1,157,928 1,218,231 1,278,534 1,278,534 1,278,534
7. NET PROFIT 2,701,832 2,842,539 2,983,245 2,983,245 2,983,245
RATIOS (%)Gross Profit/Sales 33.86% 35.62% 37.38% 37.38% 37.38%
Net Profit After Tax/Sales 23.70% 24.93% 26.17% 26.17% 26.17%
Return on Investment 18.53% 18.17% 17.81% 17.81% 17.81%
Return on Equity 40.32% 42.42% 44.52% 44.52% 44.52%
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Annex 5: Projected Balance Sheet (in Birr)
CONSTRUCTION PRODUCTION
Year 1 Year 2 1 2 3 4
TOTAL ASSETS 7,092,225 16,750,793 17,683,520 18,084,841 18,711,456 19,292,2331. Total Current Assets 0 2,566,343 4,882,736 6,730,571 8,772,276 10,768,143
Inventory on Materials and Supplies 0 0 1,410,456 1,598,517 1,880,608 1,880,608
Work in Progress 0 0 154,710 175,338 206,279 206,279
Finished Products in Stock 0 0 309,419 350,675 412,559 412,559
Accounts Receivable 0 0 932,727 1,057,091 1,243,636 1 ,243,636
Cash in Hand 0 0 50,173 56,862 66,897 66,897
Cash Surplus, Finance Available 0 2,566,343 2,025,252 3,492,089 4,962,297 6,958,164
Securities 0 0 0 0 0 0
2. Total Fixed Assets, Net of Depreciation 7,092,225 14,184,450 12,769,360 11,354,270 9,939,180 8,524,090
Fixed Investment 0 6,754,500 13,509,000 13,509,000 13,509,000 13,509,000
Construction in Progress 6,754,500 6,754,500 0 0 0 0Pre-Production Expenditure 337,725 675,450 675,450 675,450 675,450 675,450
Less Accumulated Depreciation 0 0 1,415,090 2,830,180 4,245,270 5,660,360
3. Accumulated Losses Brought Forward 0 0 0 0 0 0
4. Loss in Current Year 0 0 31,424 0 0 0
TOTAL LIABILITIES 7,092,225 16,750,793 17,683,520 18,084,841 18,711,456 19,292,233
5. Total Current Liabilities 0 0 932,727 1,057,091 1,243,636 1 ,243,636
Accounts Payable 0 0 932,727 1,057,091 1,243,636 1 ,243,636
Bank Overdraft 0 0 0 0 0 0
6. Total Long-term Debt 4,255,335 10,050,476 10,050,476 8,375,396 6,700,317 5,025,238
Loan A 4,255,335 10,050,476 10,050,476 8,375,396 6,700,317 5,025,238
Loan B 0 0 0 0 0 0
7. Total Equity Capital 2,836,890 6,700,317 6,700,317 6,700,317 6,700,317 6,700,317Ordinary Capital 2,836,890 6,700,317 6,700,317 6,700,317 6,700,317 6,700,317
Preference Capital 0 0 0 0 0 0
Subsidies 0 0 0 0 0 0
8. Reserves, Retained Profits Brought Forward 0 0 0 -31,424 1,952,037 4,067,186
9.Net Profit After Tax 0 0 0 1,983,460 2,115,149 2,255,856
Dividends Payable 0 0 0 0 0 0
Retained Profits 0 0 0 1,983,460 2,115,149 2,255,856
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Annex 5: Projected Balance Sheet (in Birr): Continued
PRODUCTION
5 6 7 8 9 10
TOTAL ASSETS 20,013,716 21,040,469 22,207,928 25,191,174 28,174,419 31,157,665
1. Total Current Assets 12,904,716 15,111,469 17,458,928 21,622,174 25,785,419 29,948,665Inventory on Materials and Supplies 1,880,608 1,880,608 1,880,608 1,880,608 1,880,608 1,880,608
Work in Progress 206,279 206,279 206,279 206,279 206,279 206,279
Finished Products in Stock 412,559 412,559 412,559 412,559 412,559 412,559
Accounts Receivable 1,243,636 1,243,636 1,243,636 1,243,636 1,243,636 1,243,636
Cash in Hand 66,897 66,897 66,897 66,897 66,897 66,897
Cash Surplus, Finance Available 9,094,737 11,301,490 13,648,949 17,812,194 21,975,440 26,138,685
Securities 0 0 0 0 0 0
2. Total Fixed Assets, Net of Depreciation 7,109,000 5,929,000 4,749,000 3,569,000 2,389,000 1,209,000
Fixed Investment 13,509,000 13,509,000 13,509,000 13,509,000 13,509,000 13,509,000
Construction in Progress 0 0 0 0 0 0
Pre-Production Expenditure 675,450 675,450 675,450 675,450 675,450 675,450
Less Accumulated Depreciation 7,075,450 8,255,450 9,435,450 10,615,450 11,795,450 12,975,4503. Accumulated Losses Brought Forward 0 0 0 0 0 0
4. Loss in Current Year 0 0 0 0 0 0
TOTAL LIABILITIES 20,013,716 21,040,469 22,207,928 25,191,174 28,174,419 31,157,665
5. Total Current Liabilities 1,243,636 1,243,636 1,243,636 1,243,636 1,243,636 1,243,636
Accounts Payable 1,243,636 1,243,636 1,243,636 1,243,636 1,243,636 1,243,636
Bank Overdraft 0 0 0 0 0 0
6. Total Long-term Debt 3,350,159 1,675,079 0 0 0 0
Loan A 3,350,159 1,675,079 0 0 0 0
Loan B 0 0 0 0 0 0
7. Total Equity Capital 6,700,317 6,700,317 6,700,317 6,700,317 6,700,317 6,700,317
Ordinary Capital 6,700,317 6,700,317 6,700,317 6,700,317 6,700,317 6,700,317Preference Capital 0 0 0 0 0 0
Subsidies 0 0 0 0 0 0
8. Reserves, Retained Profits Brought Forward 6,323,041 8,719,604 11,421,436 14,263,975 17,247,220 20,230,466
9. Net Profit After Tax 2,396,562 2,701,832 2,842,539 2,983,245 2,983,245 2,983,245
Dividends Payable 0 0 0 0 0 0
Retained Profits 2,396,562 2,701,832 2,842,539 2,983,245 2,983,245 2,983,245
10