Académique Documents
Professionnel Documents
Culture Documents
Development Studies
Associates (DSA)
October 2008
Addis Ababa
Table of Contents
1.Executive Summary.............................................................................3
2.Product Description and Application.................................................3
3.Market Study, Plant Capacity and Production Program................4
3.1Market Study...........................................................................................................................4
3.1.1Present Demand and Supply............................................................................................4
3.1.2Projected Demand............................................................................................................7
3.1.3Pricing and Distribution...................................................................................................9
3.2Plant Capacity.........................................................................................................................9
3.3Production Program..............................................................................................................10
8.Financial Analysis..............................................................................14
8.1Underlying Assumption .......................................................................................................14
8.2Investment.............................................................................................................................15
8.3Production Costs...................................................................................................................15
8.4Financial Evaluation.............................................................................................................16
1. Executive Summary
The project envisages the manufacturing of 308 tons of candles per year in Amhara Regional
State.
The market study shows the existence of sufficient demand for the product.
The initial investment cost is estimated at about Birr 1.8 million.
The project will create employment opportunities for 15 persons.
The internal rate of return (IRR) of the project is 28.7% and the net present value is more than
Birr 456 thousands discounted at 18%.
Market Study
3.1.1 Present Demand and Supply
Candles are sources of light for homes during evenings and as such they are items of necessity
especially in rural areas. Modern candle processing from paraffin is a young venture, but candle
making from bees wax (Tuaf) is one of the oldest and ancient traditional arts of Ethiopia. The art
is still in existence but due to the expensive nature of the input, the low quality of the product
and the finding of cheap and quality substitute for it, paraffin wax candle-drove it out of the
market.
Candle is demanded by all income groups both in urban and rural areas. However, its importance
becomes more crucial in a country like Ethiopia where modern electricity supplies are minimal
and the numbers of churches using the product are numerous.
In Ethiopia the per-capita consumption of domestic electricity, (as indicated in the report on
Large and Medium Scale Manufacturing and Electricity Industry Survey, Statistical Bulletin
403) is about 10.5 kwh, which is one of the lowest by world standard. The great majority of the
population, about 85%, is still using other means of lighting. These include imported kerosene
lamps, imported hurricane and pressure lamps, imported and locally produced candles and fire
wood and to a lesser extent electricity.
The general picture of electricity consumption is also true to Amhara region. Currently it is
estimated that about 3-5% of the people in Amhara Region have access to electric light and
energy while the rest of the people, about 17.5 million, use traditional sources of energy for
getting light and heat.
Fuel wood and kerosene are the two main sources of light for homes in places where there is no
electric power supply. Fuel wood made in a form of kitkit provides light during the evening, if
woods used for kitkit are available. Kerosene in kuragz also provides light for homes. But
due to the widespread deforestation, the type of fuel wood where kitkit is made is not available
4
practically in all parts of Amhara Region. Kerosene, as the only alternative, is only used by well
to do farmers because of its price and by low income groups of urban dwellers where there is
electric power and by most urban dwellers, where there is no power supply. For these reasons,
more than 95% of house in the rural areas and a significant number of urban with no electric
power of the Amhara Region do not have lights during the evening, especially after meals are
cooked. Hence, it could be said that Amhara land is as dark as darkness itself after sunset, which
manifests the general backwardness of the Region.
Candle in Ethiopia is not demanded by rural and urban centers with no power but also by urban
centers having power during power interruption, which is a frequent phenomenon of the country
and by a number of churches as a substitute of Tuaf. More than 3100 churches are estimated to
exist in Amhara Region and 18,000 in the country.
Orthodox Church believers usually vow to light candles in churches during high mass ceremony.
Candle is also demanded during special occasions like birthday, marriage, Christmas, vow day
etc. Hotels, bars and restaurants are also major consumers of candle.
Demand for candle in Ethiopia is satisfied through domestic production and imports.
A) Domestic production:- All commercial candles produced in the country are produced
in and around Addis Ababa. The CSA statistical bulletins reveal that the country has
produced about 593 tons, which is equivalent to 11.86 million of candle on the
average between the last ten years (1990 and 1999 E.C). Local production of candles
has fluctuated over the years.
Quantity ( In Tons)
90
946
91
719
92
769
93
559
94
677
95
614
96
348
97
256
98
319
99
725
Average
593
B) Import of Candles:- As per the record of Central Statistics and Customs Authority,
the country has imported about 2,856 tons of candles during the last ten years at CIF
value of about Birr 134.32 million on the average. This indicates that more than four
folds of candles come from abroad (table -2- )
The current total effective demand for candles in the country is therefore about 3449 tons, which
is equivalent to about 6.9 million pieces.
1991
749
4315
1992
326
2033
1993
1231
7756
1994
12800
77393
1995
1986
11865
1996
670
4186
1997
1967
12280
1998
7181
1073
1999
Average
1510
2856
12605
13432
(under normal condition a candle burns for about 5 hours). This group will require
about 5,000,000 pieces of candle, which is equivalent to about 250 tons.
c) Churches:- out of the estimated churches of the country (18,000) about 50% (9,000) are
expected to celebrate a minimum of 18 holidays/month and perform high mass where in
three candles are consumed in each church during mass. This will require a total of
5,832,000 pieces for 292 tons. This will include special occasions and vowers demand.
d) Well-to-do Rural Facilities Out of the total 66,780,000 of Rural population of 2007
(13,357,400 families), o.01% of the family is expected to use two packets (16 pcs) per
year, which totals to about 2,137,184 pieces, or about 107 tons of candles per year.
e) The candle consumption will grow by the combined average growth rate of, GDP
growth of 10.7% and urban population growth of 4.5%. which is 7.6% per year.
Based on the above assumptions the forecasted demand for candle for the next ten years is
indicated in table -3- below. Aggregate demand for candles ranges from 6,630 tons in 2001 to
12,818 tons in 2010.
The comparison between effective and projected demand for candles shows that there is excess
demand at national level.
Year
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Table -3
Forecasted Demand for Candle (tons)
Urban
Hotels
Rural
Population
&Bars
Churches Population Total
5981
250
292
107
6630
6436
269
314
115
7134
6925
289
338
124
7676
7451
311
364
133
8260
8018
335
391
143
8887
8627
361
421
154
9563
9283
388
453
166
10290
9988
417
487
178
11072
10747
449
524
192
11913
11564
483
564
207
12818
In Amhara Region there is no plant that produces candle to date. On the other hand due to its vast
population and increased urbanization the average level of candle consumption of the region
during the last four years was (21996 - 1999) estimated to be about 165 tons which is equivalent
to 3.3 million pieces of candle (Project Idea). Thus, the future candle consumption of the Region
could grow by 7.6 % (average growth rate figure of GDP, 10.7% and urban population, 4.5%).
Consumption of candle per head and per family to the 2007 projected population of the Region
(19,624,000) could be about 0.2 and 0.9 or consumption per head and per family to the urban
population (2,299,000) could be about 1.6 candles and 7.8 candles per year, respectively.
In this respect the establishment of a wax candle manufacturing plant could reduce the lack of
resources of light in the Amhara Region as well as reduce the import volume and save foreign
exchange of the country.
3.2
Plant Capacity
The output of the proposed plant will be about 28,000 household candles per 8 hour a day, which
is equivalent to 7.7 million Pieces or 308 tons of candles per annum (275 working days).
3.3
Production Program
The plant is assumed to start production at 80% capacity in year one which will increase by 10%
until 100% capacity is reached.
The main direct raw material required for the manufacture of household candles are paraffin
wax, a by-product of the oil refining industry, wick and a very small quantity of paraffin oil.
Paraffin wax and oil are imported items while wick is produced locally by the Ethiopian Thread
Factory.
The paraffin wax to be used for the manufacture of household candles on the machinery and
equipment described hereafter should have a maximum oil content of 0.5% and a melting point
of 56 to 62 C.
Indirect inputs such as packing for candles are packets, cartons and labels. These materials are
produced in local Factories. Utilities such as Electrical power (AC 380 V, 50 c/s, 3-phase 27
kW), water, P.T.T etc could be available at the plant site.
4.2
It is assumed that from 1 ton of paraffin wax 25,000 candles can be produced.
Required direct and indirect materials and utilities for the production of 308 tons of candles are
indicated in the following table:
10
Table -4 Annual Raw Materials and Utilities and Cost (in 000 Birr)
Cost
Items
Unit
A) Materials
Paraffin wax
Wick
Paraffin Oil
Carton
Packet
Sub total
B) Utilities
Power
Total
Quantity
Total
tons
mt
lt.
Pcs
Pcs
3,08
1,771,000
3080
32,080
962,500
18
160
963
1,141
2,464
2,510
2,464
18
46
160
963
3,651
Kwh
216
475
1,616
2,510
475
4,126
46
Production Process
The production of candle is simple and does not require special knowledge.
The paraffin wax which is normally supplied in solid slabs of 5 kg each, is melted in electrically
heated melting pans pumped by means of a special wax pump into the higher positioned wax
feeding tanks), from where it flows into the moulds of the molding machines, where the candle
wick has already been placed in the right position. As soon as the moulds are filled, cooling
water from the water cooling unit flows through the molding machines to solidify the paraffin
wax in the moulds. After solidification time of approx. 20 minutes the finished candles can be
ejected and packed.
11
Packaging machinery has not been included since in countries with comparatively low labor
costs the packing is better done by hand. In many countries the household candles are simply
packed in blue paper, in cellophane bags or cardboard boxes.
First paraffin wax is manually fed into the boiler. The melted paraffin is then transferred to the
machine, through pipes to fill the moulds; the moulds are cooled by water circulating through the
machine. After the wax in the moulds is solidified to a certain standard, the machine overturns by
a device and the wick is cut automatically. Each candle is collected manually and then packed in
packets for delivery. The technology and capital is simple and affordable.
The producer can use alternative technology that produces less than 40 grams in weight and 19
mm in diameter and 200 mm in length, (like local candle factories) as well as use automatic
packing machine.
6.2
Pieces
2
1
2
2
1
Total Price for machinery and equipment is about Birr 200,000.00, of which 75% is in
foreign currency.
The promoter can reach machinery Supplier by the following address.
Contact InformationCompany Name:
Hot Wax Candle Co., Inc.
Contact Person:
Mr. Steve Gordon
Street Address:
3500 North O'Henry Blvd
City: Greensboro
Province/State:
North Carolina
Country/Region:
United States
Zip: 27405
Telephone:
1-336-3757892
Fax: 1-336-3757895
Alternative technology could be found in India, China or Japan.
12
6.3
area
100 m2,
Storage
area
27 m2 and
Facilities
area
54 m2
Total
built up area
181 m2
The cost of the building which is to be built with hollow blocks is about Birr 362,200 (Birr
2000/m2) and the land lease is Birr 60/m2.
Human Resource
7.2
No.
1
1
1
1
1
5
3
2
15
Salary/Month/Person
2,000
1,000
800
750
750
400
400
400
-
Annual/Salary
24,000
12,000
9,600
9,000
9,000
24,000
14,400
9,600
111,600
22,320
133,920
Training Requirement
13
Training of manpower could be carried out in any one of similar plants established in Addis
Ababa at marginal cost.
8. Financial Analysis
8.1
Underlying Assumption
The financial analysis of candle producing plant is based on the data provided in the preceding
chapters and the following assumptions.
A. Construction and Finance
Construction period
2 years
Source of finance
Tax holidays
2 years
12%
18%
Value of land
3% of fixed investment
B. Depreciation
Building
5%
10%
Office furniture
10%
Vehicles
20%
Pre-production (amortization)
20%
30 days
Raw Material-Foreign
120 days
30 days
30 days
Work in Progress
Finished Products
Accounts Receivable
10 days
15 days
30 days
14
Cash in Hand
Accounts Payable
8.2
30 days
30 days
Investment
The total investment cost of the project including working capital (table 6) is estimated to be
about Birr 1.8 million. The owner could contribute about 40% of the total investment while the
rest 60% could be financed by long term bank loan The foreign component of the project
accounts for Birr 0.65 million or 36% of the total investment cost.
Table 6: Total initial investment
LC
Land
Building
Office equipment
Vehicles
machinery & equipment
Total Fixed Investment
Pre production
Total Initial Investment
Working capital
FC
Total
3,000
3,000
362,200
362,200
10,000
10,000
50,000
150,000
200,000
425,200
150,000
575,200
28,760
28,760
453,960
150,000
603,960
700,465
497,891
1,198,355
Total
1,154,425
647,891
1,802,315
*Pre-production capital expenditure includes - all expenses for pre-investment studies,
consultancy fee during construction and expenses for companys establishment, project
administration expenses, commission expenses, preproduction marketing and interest expenses
during construction.
8.3
Production Costs
The total production cost at full capacity operation is estimated to be about Birr 4.4 million
(Table 7). Raw materials and utilities account for 82.4% of the total factory cost.
15
Table -7-
475,000
133,920
17,256
Factory costs
5. Depreciation
6. Financial costs
3,651,000
4,277,176
44,862
108,139
4,430,177
Financial Evaluation
I.
Profitability
According to the projected income statement the project will generate profit beginning from the
first year of operation. The income statement and other profitability indicators show that the
project will get 29.% return on investment and 26% return on equity as well.
II.
Breakeven Analysis
Payback Period
Investment cost and income statement projection are used in estimating the project payback
period. The project wills payback fully the initial investment less working capital in two years
time.
16
IV.
Based on cash flow statement the calculated IRR of the project is 28.7% and the net present
value at 18% discount is Birr 456 thousands.
VI.
Sensitivity Analysis
If costs of raw materials are increased by 10 %, the plant will absorb it profitably.
17
will be saved as a result of the proposed project. This will create room for the saved hard
currency to be allocated to other vital and strategic sectors.
D. Employment and Income Generation
The proposed project is expected to create employment opportunity to 15 professionals as well as
support staff. Consequently the project creates income for birr 134 thousand per year. This would
be one of the commendable accomplishments of the project.
E. Pro Environment Project
The proposed production process is environment friendly.
18
ANNEXES
19
PRODUCTION
Year 1
Year 2
0.00
0.00
80%
90%
100%
100%
1. Total Inventory
0.00
0.00
1522909.52
1713273.21
1903636.90
1903636.90
0.00
0.00
617367.27
694538.18
771709.09
771709.09
Raw Material-Local
0.00
0.00
219054.55
246436.36
273818.18
273818.18
Raw Material-Foreign
0.00
0.00
398312.73
448101.82
497890.91
497890.91
0.00
0.00
3771.96
4243.46
4714.95
4714.95
0.00
0.00
1505.98
1694.23
1882.47
1882.47
Work in Progress
0.00
0.00
94299.01
106086.39
117873.76
117873.76
Finished Products
0.00
0.00
188598.02
212172.77
235747.53
235747.53
2. Accounts Receivable
0.00
0.00
430080.00
483840.00
537600.00
537600.00
3. Cash in Hand
0.00
0.00
53142.11
59784.87
66427.64
66427.64
0.00
0.00
1388764.35
1562359.90
1735955.44
1735955.44
4. Current Liabilities
0.00
0.00
430080.00
483840.00
537600.00
537600.00
Accounts Payable
0.00
0.00
430080.00
483840.00
537600.00
537600.00
0.00
0.00
958684.35
1078519.90
1198355.44
1198355.44
0.00
0.00
958684.35
119835.54
119835.54
0.00
CURRENT ASSETS
(continued)
PRODUCTION
5
10
100%
100%
100%
100%
100%
100%
1903636.90
1903636.90
1903636.90
1903636.90
1903636.90
1903636.90
771709.09
771709.09
771709.09
771709.09
771709.09
771709.09
Raw Material-Local
273818.18
273818.18
273818.18
273818.18
273818.18
273818.18
Raw Material-Foreign
497890.91
497890.91
497890.91
497890.91
497890.91
497890.91
4714.95
4714.95
4714.95
4714.95
4714.95
4714.95
1882.47
1882.47
1882.47
1882.47
1882.47
1882.47
Work in Progress
117873.76
117873.76
117873.76
117873.76
117873.76
117873.76
Finished Products
235747.53
235747.53
235747.53
235747.53
235747.53
235747.53
2. Accounts Receivable
537600.00
537600.00
537600.00
537600.00
537600.00
537600.00
3. Cash in Hand
66427.64
66427.64
66427.64
66427.64
66427.64
66427.64
1735955.44
1735955.44
1735955.44
1735955.44
1735955.44
1735955.44
4. Current Liabilities
537600.00
537600.00
537600.00
537600.00
537600.00
537600.00
Accounts Payable
537600.00
537600.00
537600.00
537600.00
537600.00
537600.00
1198355.44
1198355.44
1198355.44
1198355.44
1198355.44
1198355.44
0.00
0.00
0.00
0.00
0.00
0.00
CURRENT ASSETS
PRODUCTION
Year 1
Year 2
301980.00
1500335.44
4372480.00
4488960.00
4981760.00
4928000.00
301980.00
1500335.44
430080.00
53760.00
53760.00
0.00
Total Equity
120792.00
600134.18
0.00
0.00
0.00
0.00
181188.00
900201.26
0.00
0.00
0.00
0.00
0.00
0.00
430080.00
53760.00
53760.00
0.00
2. Inflow Operation
0.00
0.00
3942400.00
4435200.00
4928000.00
4928000.00
Sales Revenue
0.00
0.00
3942400.00
4435200.00
4928000.00
4928000.00
Interest on Securities
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
301980.00
301980.00
5099252.51
4363597.14
4911687.90
4722952.91
301980.00
301980.00
0.00
0.00
0.00
0.00
Fixed Investments
287600.00
287600.00
0.00
0.00
0.00
0.00
Pre-production Expenditures
14380.00
14380.00
0.00
0.00
0.00
0.00
0.00
0.00
1388764.35
173595.54
173595.54
0.00
6. Operating Costs
0.00
0.00
3449689.30
3880003.34
4310317.38
4310317.38
0.00
0.00
0.00
0.00
139404.51
145892.84
8. Interest Paid
0.00
0.00
260798.86
129766.71
108138.93
86511.14
9.Loan Repayments
0.00
0.00
0.00
180231.54
180231.54
180231.54
10.Dividends Paid
0.00
0.00
0.00
0.00
0.00
0.00
Surplus(Deficit)
0.00
1198355.44
-726772.51
125362.86
70072.10
205047.09
0.00
1198355.44
471582.93
596945.79
667017.88
872064.97
3. Other Income
6
4928000.00
7
4928000.00
8
4928000.00
9
4928000.00
10
4928000.00
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
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
2. Inflow Operation
4928000.00
4928000.00
4928000.00
4928000.00
4928000.00
4928000.00
Sales Revenue
4928000.00
4928000.00
4928000.00
4928000.00
4928000.00
4928000.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
4707813.46
4694399.61
4679260.16
4483889.17
4483889.17
4483889.17
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
0.00
0.00
0.00
0.00
0.00
0.00
6. Operating Costs
4310317.38
4310317.38
4310317.38
4310317.38
4310317.38
4310317.38
152381.18
160595.11
167083.45
173571.79
173571.79
173571.79
8. Interest Paid
64883.36
43255.57
21627.79
0.00
0.00
0.00
9. Loan Repayments
180231.54
180231.54
180231.54
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Surplus(Deficit)
220186.54
233600.39
248739.84
444110.83
444110.83
444110.83
1092251.51
1325851.90
1574591.75
2018702.58
2462813.41
2906924.25
Interest on Securities
3. Other Income
TOTAL CASH OUTFLOW
4. Increase In Fixed Assets
10.Dividends Paid
PRODUCTION
Year 1
Year 2
0.00
0.00
3942400.00
4435200.00
4928000.00
4928000.00
1. Inflow Operation
0.00
0.00
3942400.00
4435200.00
4928000.00
4928000.00
Sales Revenue
0.00
0.00
3942400.00
4435200.00
4928000.00
4928000.00
Interest on Securities
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
301980.00
301980.00
4408373.66
3999838.89
4569557.43
4456210.22
301980.00
301980.00
0.00
0.00
0.00
0.00
Fixed Investments
287600.00
287600.00
0.00
0.00
0.00
0.00
Pre-production Expenditures
14380.00
14380.00
0.00
0.00
0.00
0.00
0.00
0.00
958684.35
119835.54
119835.54
0.00
5. Operating Costs
0.00
0.00
3449689.30
3880003.34
4310317.38
4310317.38
0.00
0.00
0.00
0.00
139404.51
145892.84
-301980.00
-301980.00
-465973.66
435361.11
358442.57
471789.78
-301980.00
-603960.00
-1069933.66
-634572.54
-276129.98
195659.80
-301980.00
-255915.25
-334655.03
264974.21
184880.69
206223.66
-301980.00
-557895.25
-892550.28
-627576.06
-442695.38
-236471.72
2. Other Income
(Continued)
PRODUCTION
5
10
4928000.00
4928000.00
4928000.00
4928000.00
4928000.00
4928000.00
1. Inflow Operation
4928000.00
4928000.00
4928000.00
4928000.00
4928000.00
4928000.00
Sales Revenue
4928000.00
4928000.00
4928000.00
4928000.00
4928000.00
4928000.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
4462698.56
4470912.49
4477400.83
4483889.17
4483889.17
4483889.17
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
0.00
0.00
0.00
0.00
0.00
0.00
5. Operating Costs
4310317.38
4310317.38
4310317.38
4310317.38
4310317.38
4310317.38
152381.18
160595.11
167083.45
173571.79
173571.79
173571.79
465301.44
457087.51
450599.17
444110.83
444110.83
444110.83
660961.24
1118048.75
1568647.92
2012758.75
2456869.58
2900980.42
172362.33
143491.21
119876.58
100127.48
84853.80
71910.00
-64109.39
79381.82
199258.40
299385.88
384239.68
456149.68
Interest on Securities
2. Other Income
TOTAL CASH OUTFLOW
456,149.68
28.7%
80%
90%
100%
100%
100%
3942400.00
4435200.00
4928000.00
4928000.00
4928000.00
3942400.00
4435200.00
4928000.00
4928000.00
4928000.00
Other Income
0.00
0.00
0.00
0.00
0.00
3399657.90
3824615.14
4249572.38
4249572.38
4249572.38
542742.10
610584.86
678427.62
678427.62
678427.62
13.77
13.77
13.77
13.77
13.77
94893.40
100250.20
105607.00
105607.00
105607.00
447848.70
510334.66
572820.62
572820.62
572820.62
11
12
12
12
12
260798.86
129766.71
108138.93
86511.14
64883.36
5. GROSS PROFIT
187049.84
380567.95
464681.69
486309.48
507937.26
0.00
0.00
139404.51
145892.84
152381.18
187049.84
380567.95
325277.19
340416.64
355556.08
Gross Profit/Sales
5%
9%
9%
10%
10%
5%
9%
7%
7%
7%
Return on Investment
29%
30%
24%
24%
23%
Return on Equity
26%
53%
45%
47%
49%
VARIABLE MARGIN
(In % of Total Income)
3. Less Fixed Costs
OPERATIONAL MARGIN
(In % of Total Income)
10
100%
100%
100%
100%
100%
4928000.00
4928000.00
4928000.00
4928000.00
4928000.00
4928000.00
4928000.00
4928000.00
4928000.00
4928000.00
Other Income
0.00
0.00
0.00
0.00
0.00
4249572.38
4249572.38
4249572.38
4249572.38
4249572.38
678427.62
678427.62
678427.62
678427.62
678427.62
14
14
14
14
14
99855.00
99855.00
99855.00
99855.00
99855.00
578572.62
578572.62
578572.62
578572.62
578572.62
12
12
12
12
12
43255.57
21627.79
0.00
0.00
0.00
5. GROSS PROFIT
535317.05
556944.83
578572.62
578572.62
578572.62
160595.11
167083.45
173571.79
173571.79
173571.79
7. NET PROFIT
374721.93
389861.38
405000.83
405000.83
405000.83
Gross Profit/Sales
11%
11%
12%
12%
12%
8%
8%
8%
8%
8%
Return on Investment
23%
23%
22%
22%
22%
Return on Equity
52%
54%
56%
56%
56%
VARIABLE MARGIN
(In % of Total Income)
3. Less Fixed Costs
OPERATIONAL MARGIN
(In % of Total Income)
RATIOS (%)
Year 2
PRODUCTION
1
TOTAL ASSETS
1. Total Current Assets
Inventory on Materials and Supplies
Work in Progress
Finished Products in Stock
Accounts Receivable
Cash in Hand
Cash Surplus, Finance Available
Securities
2. Total Fixed Assets, Net of Depreciation
Fixed Investment
Construction in Progress
Pre-Production Expenditure
Less Accumulated Depreciation
3. Accumulated Losses Brought Forward
4. Loss in Current Year
TOTAL LIABILITIES
5. Total Current Liabilities
Accounts Payable
Bank Overdraft
6. Total Long-term Debt
Loan A
Loan B
7. Total Equity Capital
Ordinary Capital
Preference Capital
Subsidies
8. Reserves, Retained Profits Brought Forward
9.Net Profit After Tax
Dividends Payable
Retained Profits
301980.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
301980.00
0.00
287600.00
14380.00
0.00
0.00
0.00
301980.00
0.00
0.00
0.00
181188.00
181188.00
0.00
120792.00
120792.00
0.00
0.00
0.00
0.00
0.00
0.00
1802315.44
1198355.44
0.00
0.00
0.00
0.00
0.00
1198355.44
0.00
603960.00
287600.00
287600.00
28760.00
0.00
0.00
0.00
1802315.44
0.00
0.00
0.00
1081389.26
1081389.26
0.00
720926.18
720926.18
0.00
0.00
0.00
0.00
0.00
0.00
2419445.28
1860347.28
622645.21
94299.01
188598.02
430080.00
53142.11
471582.93
0.00
559098.00
575200.00
0.00
28760.00
44862.00
0.00
0.00
2419445.28
430080.00
430080.00
0.00
1081389.26
1081389.26
0.00
720926.18
720926.18
0.00
0.00
0.00
187049.84
0.00
187049.84
2673541.68
2159305.68
700475.86
106086.39
212172.77
483840.00
59784.87
596945.79
0.00
514236.00
575200.00
0.00
28760.00
89724.00
0.00
0.00
2673541.68
483840.00
483840.00
0.00
901157.72
901157.72
0.00
720926.18
720926.18
0.00
0.00
187049.84
380567.95
0.00
380567.95
2872347.32
2402973.32
778306.51
117873.76
235747.53
537600.00
66427.64
667017.88
0.00
469374.00
575200.00
0.00
28760.00
134586.00
0.00
0.00
2872347.32
537600.00
537600.00
0.00
720926.18
720926.18
0.00
720926.18
720926.18
0.00
0.00
567617.79
325277.19
0.00
325277.19
3032532.42
2608020.42
778306.51
117873.76
235747.53
537600.00
66427.64
872064.97
0.00
424512.00
575200.00
0.00
28760.00
179448.00
0.00
0.00
3032532.42
537600.00
537600.00
0.00
540694.63
540694.63
0.00
720926.18
720926.18
0.00
0.00
892894.97
340416.64
0.00
340416.64
9
4421978.85
4198768.85
778306.51
10
4826979.69
4642879.69
778306.51
Continued
PRODUCTION
TOTAL ASSETS
1. Total Current Assets
Inventory on Materials and Supplies
5
3207856.96
2828206.96
778306.51
6
3402347.35
3061807.35
778306.51
7
3611977.19
3310547.19
778306.51
8
4016978.02
3754658.02
778306.51
10
Work in Progress
Finished Products in Stock
Accounts Receivable
Cash in Hand
Cash Surplus, Finance Available
Securities
2. Total Fixed Assets, Net of Depreciation
Fixed Investment
Construction in Progress
Pre-Production Expenditure
Less Accumulated Depreciation
3. Accumulated Losses Brought Forward
4. Loss in Current Year
TOTAL LIABILITIES
5. Total Current Liabilities
Accounts Payable
Bank Overdraft
6. Total Long-term Debt
Loan A
Loan B
7. Total Equity Capital
Ordinary Capital
Preference Capital
Subsidies
8. Reserves, Retained Profits Brought Forward
9. Net Profit After Tax
Dividends Payable
Retained Profits
117873.76
235747.53
537600.00
66427.64
1092251.51
0.00
379650.00
575200.00
0.00
28760.00
224310.00
0.00
0.00
3207856.96
537600.00
537600.00
0.00
360463.09
360463.09
0.00
720926.18
720926.18
0.00
0.00
1233311.61
355556.08
0.00
355556.08
117873.76
235747.53
537600.00
66427.64
1325851.90
0.00
340540.00
575200.00
0.00
28760.00
263420.00
0.00
0.00
3402347.35
537600.00
537600.00
0.00
180231.54
180231.54
0.00
720926.18
720926.18
0.00
0.00
1588867.69
374721.93
0.00
374721.93
117873.76
235747.53
537600.00
66427.64
1574591.75
0.00
301430.00
575200.00
0.00
28760.00
302530.00
0.00
0.00
3611977.19
537600.00
537600.00
0.00
0.00
0.00
0.00
720926.18
720926.18
0.00
0.00
1963589.63
389861.38
0.00
389861.38
117873.76
235747.53
537600.00
66427.64
2018702.58
0.00
262320.00
575200.00
0.00
28760.00
341640.00
0.00
0.00
4016978.02
537600.00
537600.00
0.00
0.00
0.00
0.00
720926.18
720926.18
0.00
0.00
2353451.01
405000.83
0.00
405000.83
117873.76
235747.53
537600.00
66427.64
2462813.41
0.00
223210.00
575200.00
0.00
28760.00
380750.00
0.00
0.00
4421978.85
537600.00
537600.00
0.00
0.00
0.00
0.00
720926.18
720926.18
0.00
0.00
2758451.84
405000.83
0.00
405000.83
117873.76
235747.53
537600.00
66427.64
2906924.25
0.00
184100.00
575200.00
0.00
28760.00
419860.00
0.00
0.00
4826979.69
537600.00
537600.00
0.00
0.00
0.00
0.00
720926.18
720926.18
0.00
0.00
3163452.68
405000.83
0.00
405000.83
11