Project Profile on the Vegetable and fruit

Production Farms

AUGUST 2012
BAHIR DAR
 Table of Contents

1. Executive Summary............................................................................................1
2. Product Description and Application..............................................................1
3. Market Study, Farm Capacity and Production Program.............................2
3.1 Market Study.....................................................................................................................2
3.1.1 Present Demand and Supply......................................................................................2
3.1.2 Projected Demand......................................................................................................3
3.1.3 Pricing and Distribution.............................................................................................3
3.2 Farm Capacity...................................................................................................................3
3.3 Production Program..........................................................................................................4
4. Raw Materials and Utilities..............................................................................4
4.1 Availability and Source of Raw Materials........................................................................4
4.2 Annual Requirement and Cost of Raw Materials and Utilities.........................................4
5 Location and Site...............................................................................................5
6 Farming Technology.........................................................................................5
6.1 Production Process............................................................................................................5
6.2. Types of Production..............................................................................................................7
6.3. Production Factors and Techniques......................................................................................8
6.4. Agricultural tools & Equipment’s...................................................................................11
6.5. Civil Engineering Cost....................................................................................................11
7. Planned Space/land utilization of Nile fresh fruit and vegetable................12
8. Human Resource and Training Requirement..............................................19
8.1. Human Resource.............................................................................................................19
8.2. Training Requirement.....................................................................................................19
9.1. Underlying Assumption......................................................................................................20
9.2. Investment...........................................................................................................................21
9. 3 Production Costs.................................................................................................................22
9.4. Financial Evaluation.......................................................................................................22
10. Economic and Social Benefit and Justification.................................................23
 1. Executive Summary
This project profile deals with the establishment of a vegetable and fruit production farms in
Amhara National Regional State bahir dar city. The following presents the main findings of the
study
Demand projection divulges that the domestic demand for vegetable products is substantial and
is increasing with time. Accordingly, the planned plantation is set to produce 60,000 quintals of
various types of vegetables and fruits per annum. The total investment cost of the project
including working capital is estimated at Birr 30 million (7.5 million equity and 22.5 million
bank loan) and creates job opportunities for 58 persons permanently with out up lifters of
product’s to car.
The financial result indicates that the project will generate profit beginning from the first year of
operation. Moreover, the project will break even at 63.25% of capacity utilization and it will
payback fully the initial investment less working capital in three years. The result further show
that the calculated IRR of the project is 26.70% and the NPV discounted at annual rate of 18% is
Birr 183,953.
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 better public
health and nutrition, and modernization and commercialization of agriculture.
Generally’ the project is technically feasible, financially and commercially viable as well as
socially and economically acceptable. Hence the project is worth implementing.

2. Product Description and Application

Vegetable farming is growing of vegetable crops, primarily for use as human food.

The term vegetable in its broadest sense refers to any kind of plant life or plant product; in the
narrower sense, as used in this article, however, it refers to the fresh, edible portion of a
herbaceous plant consumed in either raw or cooked form. The edible portion may be a root, such
as rutabaga, beet, carrot, and sweet potato; a tuber or storage stem, such as potato and taro; the
stem, as in asparagus and kohlrabi; a bud, such as brussels sprouts; a bulb, such as onion an d
and garlic; etiole or leafstalk, such as celery and rhubarb; a leaf, such
as cabbage, lettuce, parsley, spinach, and chive; an immature flower, such

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as cauliflower, broccoli, and artichoke; a seed, such as pea and lima bean; the immature fruit,
such as eggplant, cucumber, and sweet corn (maize); or the mature fruit, such
as tomato and pepper.

The popular distinction between vegetable and fruit is difficult to uphold. In general, those plants
or plant parts that are usually consumed with the main course of a meal are popularly regarded as
vegetables, while those mainly used as desserts are considered fruits. This distinction is applied
in this article. Thus, cucumber and tomato, botanically fruits, since they are the portion of the
plant containing seeds, are commonly regarded as vegetables.

The Amhara Region has large areas and water resources suitable for the production of assorted
vegetables. Compared to cereals, pulses and oil crops, vegetables are very high in productivity
per unit of land which can play substantial role to increase the food supply of the region. With a
growing urban population, which is totally market dependent, and the current food supply
shortage, expansion in vegetable production will play a significant role in increasing food supply
of the region.

On the other hand, unbalanced and inadequate nutritional status of the people is still a central
problem in the region. Deficiency of essential food elements, such as protein, vitamins and
minerals are widely observed as basic food intake is below the minimum requirement in the
region. Increase in blindness due vitamin a deficiency is an alarming circumstance in region.
Therefore, vegetables are important source of vitamins, minerals and also good sources of
protein as well.

3. Market Study, Farm Capacity and Production Program

3.1 Market Study
3.1.1 Present Demand and Supply
A study revealed that, although the region has enormous potential on vegetable production, little
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is realized and therefore there is wide demand gap between the demand for and the supply of
vegetables. The existing demand gap is estimated at 3,000,000 quintals.

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 3.1.2 Projected Demand

The future demand for vegetables is promising due to two main factors. First, an increase in
population in general and urbanization in particular is expected to amplify the domestic
consumption of vegetables. At the same time, an increase in income inevitably improves the per
capita consumption of vegetables in the future. Consequently, with a conservative growth rate of
3% per annum, the future demand for vegetables is forecasted as shown in table 1 below.

Table 1: Future Demand

Projected
Year (EC) Demand (quintals)
2013 3,060,000
2014 3,121,800
2015 3,185,454
2016 3,251,018
2017 3,318,548
2018 3,388,105
2019 3,459,748
2020 3,533,540
2021 3,609,546
2022 3,687,833

3.1.3 Pricing and Distribution

The price of vegetables is volatile and seasonal. Generally, vegetables are much cheaper in rainy
seasons. However, even in the rainy seasons the average price of vegetables at major cities is
estimated at Birr 17 per kg. Allowing a wide profit margin for the whole and retail sellers, an
average farm gate price of Birr 5.75 per kg is set.

3.2 Farm Capacity

The envisaged plantation produces 60,000 quintals of various types of vegetables and fruits in a
year by producing three rounds in one year.

3.3 Production Program

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The program is scheduled based on the consideration that the envisaged farm will work
throughout the year except for Sundays and public holidays. During the first year of operation
the farm will operate at 65 percent capacity and then it grows to 80 percent in the 2 nd year. The
capacity will grow to 100 percent starting from the 3rd year. This consideration is developed
based on the assumption that there is ample demand for the product so that market and logistics
barriers would be eliminated with in the first two years of operation.

4. Raw Materials and Utilities

4.1 Availability and Source of Raw Materials

All raw materials are available in the local market. Cooperating with local agriculture bureaus is
important.

4.2 Annual Requirement and Cost of Raw Materials

and Utilities

The annual raw material and utility requirement and the associated cost for the envisaged farm is
listed in table 2 here under

Table 2: Raw Material Requirements Full Capacity

Price (Birr)
No. Material Qty (kg) Unit Local Total
 1 Seeds 6000 18 108,000 108,000
2  Fertilizers 5000 16 80,000 80,000
 3 Weed an Insecticides 900 20 18,000 18,000
Total   206,000 206,000

The annual utility requirements are calculated as follows:

Electricity – 20000kw =Birr 11,000
Furnace Oil – 8000lit = Birr 56,000, and
Water – 1000m3 – Birr 2,650
Therefore, the total annual utility cost is assumed to be Birr 69,650.

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5 Location and Site

This project can be implemented in various localities in ANRS. “Given varying ago-ecological
factors of the region, there is ample opportunity to grow a wide range of horticultural crops,
including fruits, spices and various types of vegetables2 at BAHIR DAR city”

6 Farming Technology

6.1 Production Process

The production process involves many steps.

1. Clearing the plot

The site should be as near as possible to a source of water. This may be a spring, river, little
stream, well or artificial reservoir. The soil must always be damp. It will have to be watered
often even during the rainy season.
Before sowing, remove all the plants and trees on the plot. Shade and the roots of trees prevent
vegetables from growing well. Roots of trees take out of the soil mineral salts which should feed
the vegetables.
2. Sowing
The seeds are sown either directly in the open beds or in a nursery bed.
a. Sowing in open beds
Certain vegetables do not need to be transplanted. They are sown; they grow and ripen, and are
harvested all at the same place. Examples are carrots, beans, okra, and radishes.
b. Sowing in a nursery bed
The nursery bed is a bed set aside for sowing seeds. When the seeds have grown into young
seedlings, these seedlings are transplanted into another bed. Examples are green or sweet
peppers, lettuces, tomatoes, leeks, cabbages.

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 c. Sowing in rows or seed holes
Sowing in rows - Lines are traced with the cord and the seeds sown along the lines. The distance
between rows varies according to the size of the vegetables.
Sowing in seed holes - Little holes are made along the lines, and one or several seeds are placed
in each hole. The distance between holes is different according to the size of the vegetables.
3. Taking care
a. Watering
Vegetables need plenty of water to develop their roots and leaves. Vegetables do not grow well
in dry soil; the soil of the beds must always be moist. In the dry season, each bed of 10 square
meters needs about 7 watering cans full of water every day.
b. Weeding and earthing up
Watering a lot means that weeds will grow. Furthermore, the water compacts the soil and a hard
layer of earth may form. Weeds take the nourishment (mineral salts) of the vegetables out of the
soil. Weeds must be removed often.
Earthing up means heaping up soil around the base of the plant. Cultivate often, so as to remove
all weeds and loosen the soil.
c. Mulching
In order to protect the soil from the sun and to enrich it with organic matter, cover the soil with
straw or herbage. This is called mulching.
d. Tying
Certain vegetables are softer and sell at a better price when they are blanched. You can prevent
them turning green by tying together the leaves, for example, endives; or by covering the base of
the plant with earth for example, leeks.
e. Putting up shelters
In regions where the sun is very hot, or the rain very heavy, the young plants must be protected.
Over every vegetable bed, put up a shelter made of palm fronds or matting.
4. Harvest and sale
In order to keen quality, utmost care should be made in harvest. Well- packed vegetables are
easier to sell and fetch a better price.

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 Vegetables must not be damaged in transport.
Alternatives:
1. The traditional subsistence farming
2. Large scale mechanized farming

6.2. Types of Production

Vegetable production operations range from small patches of crops, producing a few vegetables
for family use or marketing, to the great, highly organized and mechanized farms common in the
most technologically advanced countries.
In technologically developed countries the three main types of vegetable farming are based on
production of vegetables for the fresh market, for canning, freezing, dehydration, and pickling,
and to obtain seeds for planting.
Production for the fresh market
This type of vegetable farming is normally divided into home gardening, market
gardening, truck farming, and vegetable forcing. Home gardening provides vegetables
exclusively for family use. About one-fourth of an acre (one-tenth of a hectare) of land is
required to supply a family of six. The most suitable vegetables are those producing a large yield
per unit of area. Bean, cabbage, carrot, leek, lettuce, onion, parsley, pea, pepper, radish, spinach,
and tomato are desirable home garden crops. Market gardening produces assorted vegetables for
a local market. The development of good roads and of motor trucks has rapidly extended
available markets; the market gardener, no longer forced to confine his operations to his local
market, often is able to specialize in the production of a few, rather than an assortment, of
vegetables; a transformation that provides the basis for a distinction between market and truck
gardening in the mid-20th century. Truck gardens produce specific vegetables in relatively large
quantities for distant markets.
In the method known as forcing, vegetables are produced out of their normal season of outdoor
production under forcing structures that admit light and induce favorable environmental
conditions for plant growth. Greenhouses, cold frames, and hotbeds are common structures
used. Hydroponics, sometimes called soilless culture, allows the grower to practice automatic
watering and fertilizing, thus reducing the cost of labor.

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Production for processing
Processed vegetables include canned, frozen, dehydrated, and pickled products. The cost of
production per unit area of land and per ton is usually less for processing crops than for the same
crops grown for market because raw material appearance is not a major quality factor in
processing. This difference allows lower land value, less hand labour, and lower handling cost.
Although many kinds of vegetables can be processed, there are marked varietal differences
within each species in adaptability to a given method.
Specifications for vegetables for canning and freezing usually include small size, high quality,
and uniformity. For many kinds of vegetables, a series of varieties having different dates of
maturity is required to ensure a constant supply of raw material, thus enabling the factory to
operate with an even flow of input over a long period. Acceptable processed vegetables should
have a taste, odour, and appearance comparable with the fresh product, retain nutritive values,
and have good storage stability.
Vegetables raised for seed production
This type of vegetable farming requires special skills and techniques. The crop is not ready for
harvest when the edible portion of the plant reaches the stage of maturity; it must be carried
through further stages of growth. Production under isolated conditions ensures the purity of seed
yield. Special techniques are applied during the stage of flowering and seed development and
also in harvesting and threshing the seeds.
Nile fresh fruit and vegetabl plc. Planned to th vegetable an fruits for Production for the
fresh market, Production for processing

6.3. Production Factors and Techniques

Profitable vegetable farming requires attention to all production operations, including insect,
disease, and weed control and efficient marketing. The kind of vegetable grown is mainly
determined by consumer demands, which can be defined in terms of variety, size, tenderness,
flavor, freshness, and type of pack. Effective management involves the adoption of techniques
resulting in a steady flow of the desired amount of produce over the whole of the natural growing
season of the crop. Many vegetables can be grown throughout the year in some climates,
although yield per acre for a given kind of vegetable varies according to the growing season and
region where the crop is produced.

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Climate
Climate involves the temperature, moisture, daylight, and wind conditions of a specific region.
Climatic factors strongly affect all stages and processes of plant growth.
Temperature
Temperature requirements are based on the minimum, optimum, and maximum temperatures
during both day and night throughout the period of plant growth. Requirements vary according to
the type and variety of the specific crop. Based on their optimum temperature ranges, vegetables
may be classed as cool-season or warm-season types. Cool-season vegetables thrive in areas
where the mean daily temperature does not rise above 70° F (21° C). This group includes the
artichoke, beet, broccoli, brussels sprouts, cabbage, carrot, cauliflower,
celery, garlic, leek, lettuce, onion, parsley, pea, potato, radish, spinach, and turnip. Warm-season
vegetables, requiring mean daily temperature of 70° F or above, are intolerant of frost. These
include the bean, cucumber, eggplant, lima bean, okra, muskmelon, pepper, squash,
sweet corn (maize), sweet potato, tomato, and watermelon.
Premature seeding, or bolting, is an undesirable condition that is sometimes seen in fields of
cabbage, celery, lettuce, onion, and spinach. The condition occurs when the plant goes into the
seeding stage before the edible portion reaches a marketable size. Bolting is attributed to either
extremely low or high temperature conditions in combination with inherited traits.
Specific vegetable strains or varieties may exhibit significant differences in their tendency to
bolt. Young cabbage or onion plants of relatively large size may bolt upon exposure to low
temperatures near 50° to 55° F (10° to 13° C). At high temperatures of 70° to 80° F (21° to 27°
C) lettuce plants do not form heads and will show premature seeding. The fruit sets of tomatoes
are adversely affected by relatively low and relatively high temperatures. Tomato breeders,
however, have developed several new varieties, some setting fruits at a temperature as low as 40°
F (4° C) and others at a temperature as high as 90° F (32° C).
Moisture
The amount and annual distribution of rainfall in a region, especially during certain periods of
development, affects local crops. Irrigation may be required to compensate for insufficient
rainfall. For optimum growth and development, plants require soil that supplies water as well as
nutrients dissolved in water. Root growth determines the extent of a plant’s ability to absorb
water and nutrients, and in dry soil root growth is greatly retarded. Extremely wet soil also

9
retards root growth by restricting aeration. Atmospheric humidity, the moisture content of the air,
also contributes moisture. Certain seacoast areas characterized by high humidity are considered
especially adapted to the production of such crops as the artichoke and lima bean. High
humidity, however, also creates conditions favorable for the development of certain plant
diseases.
Daylight
Light is the source of energy for plants. The response of plants to light is dependent upon light
intensity, quality, and daily duration, or photoperiod. The seasonal variation in day length affects
the growth and flowering of certain vegetable crops. Continuation of vegetative growth, rather
than early flower formation, is desirable in such crops as spinach and lettuce. When planted very
late in the spring, these crops tend to produce flowers and seeds during the long days of summer
before they attain sufficient vegetative growth to produce maximum yields. The minimum
photoperiod required for formation of bulbs in garlic and onion plants differs among varieties,
and local day length is a determining factor in the selection of varieties.
Each of the climatic factors affects plant growth, and can be a limiting factor in plant
development. Unless each factor is of optimum quantity or quality, plants do not achieve
maximum growth. In addition to the importance of individual climatic factors, the
interrelationship of all environmental factors affects growth.
Certain combinations may exert specific effects. Lettuce usually forms a seed stalk during the
long days of summer, but the appearance of flowers may be delayed, or even prevented, by
relatively low temperature. An unfavorable temperature combined with unfavorable moisture
conditions may cause the dropping of the buds, flowers, and small fruits of the pepper, reducing
the crop yield. .
Site
The choice of a site involves such factors as soil and climatic region. In addition, with the
continued trend toward specialization and mechanization, relatively large areas are required for
commercial production, and adequate water supply and transportation facilities are
essential. Topography—that is, the surface of the soil and its relation to other areas—
influences efficiency of operation. In modern mechanized farming, large, relatively level fields
allow for lower operating costs. Power equipment may be used to modify topography, but the
cost of such land renovation may be prohibitive. The amount of slope influences the type

10
of culture possible. Fields with a moderate slope should be contoured, a process that may involve
added expense for the building of terraces and diversion ditches. The direction of a slope may
influence the maturation time of a crop or may result in drought, winter injury, or wind damage.
A level site is generally most desirable, although a slight slope may assist drainage. Exposed
sites are not suitable for vegetable farming because of the risk of damage to plants by strong
winds.
The soil stores mineral nutrients and water used by plants, as well as housing their roots. There
are two general kinds of soils mineral and the organic type called muck or peat. Mineral soils
include sandy, loamy, and clayey types. Sandy and loamy soils are usually preferred for
vegetable production. Soil reaction and degree of fertility can be determined by chemical
analysis. The reaction of the soil determines to a great extent the availability of most plant
nutrients. The degree of acid, alkaline, or neutral reaction of a soil is expressed as the pH, with a
pH of 7 being neutral, points below 7 being acid, and those above 7 being alkaline. The optimum
pH range for plant growth varies from one crop to another. A soil can be made more acid, or less
alkaline, by applying an acid-producing chemical fertilizer such as ammonium sulfate.

6.4. Agricultural tools & Equipment’s

Basically, the planting and harvesting of vegetables do not require much tools and equipment’s.
Tractor is used while preparing the land for the first planting period and therefore, the envisaged
plantation shall use hired tractor while preparing the land by renting. The plantation however,
needs to acquire 10 medium capacity water pumps and the associated equipment’s for irrigation
purpose. In addition various hand tools are also demanded. The cost of agricultural tools is
estimated to be birr 240,000. The water pumps and equipment’s can be purchased from local
suppliers.

6.5. Civil Engineering Cost

The envisaged assorted vegetable plantation requires 25 hectares of land. It also requires 100m2
area for office, store and other related facilities. The land rate is estimated bas on ANRS land
leas; while the construction is estimated at Birr 100,000.

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7. Planned Space/land utilization of Nile fresh fruit and vegetable
The total area/land required for Nile fresh vegetable and fruit is 25 hector from these 52% that
means 13 hector is planned cover with fruits such as banana, mango, avocado, orang and others.
Whereas 47.98% of area or 11.98 hector is planned to cover with vegetables such as carrot,
onion, cabbage, garlic, tomato, beet, lettuce, spinach, and others. And remaining 0.02 hector or
200m2 is for office and raw material and product’s store room.

BANANA(4 hector)

MANGO(3 hector)

AVOCADO(4 hector)

ORANG(3 hector)

carrot

onion

Cabbage
Garlic

Tomato

Spinach

Chilies

More details observe the figure below

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FRUITS
The total area/land required for Nile fresh vegetable and fruit is 25 hector from these 52% that
means 13 hector is planned to cover with fruits such as banana, mango, avocado, orang and
others.
Banana (4 hector)

Mango (3 hector)

Avocado (4 hector)

Orang (2 hector)

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 For vegetables
The total area/land required for Nile fresh vegetable and fruit is 25 hector from these 48% of area
or 12 hector is planned to cover with vegetables such as carrot, onion, cabbage, garlic, tomato,
beet, lettuce, spinach, and others. As shown figure below.
The farming or production of vegetable depends on the season that means on the rainy season chilies,
garlic, carrot, beet and others are more productive whereas during sunny season tomato, lattice, cabbage are
more productive. So Nile fruit and vegetable farming plc. Plans to rotate crops as possible to be productive.
Carrot

Tomato

Onion beet

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Cabbage

Lattice

Garlic

Chilies

15
TECHNOLOGICAL ADVANCEMENT IN VEGETABLE FARMING
Vertical farming

Vertical farming is the practice of growing crops in vertically stacked layers. It often
incorporates controlled-environment agriculture, which aims to optimize plant growth, and soilless farming
techniques such as hydroponics, aquaponics, and aeroponics. Some common choices of structures to house
vertical farming systems include buildings, shipping containers, tunnels, and abandoned mine shafts

The main advantage of utilizing vertical farming technologies is the increased crop yield that
comes with a smaller unit area of land requirement. The increased ability to cultivate a larger
variety of crops at once because crops do not share the same plots of land while growing is
another sought-after advantage.

Types of Vertical Farming

Building-based Vertical Farms

Abandoned buildings are often reused for vertical farming, such as a farm at Chicago called “The
Plant,” which was transformed from an old meatpacking plant However, new builds are
sometimes also constructed to house vertical farming systems.

Shipping-container Vertical Farms

Recycled shipping containers are an increasingly popular option for housing vertical farming

systems. The shipping containers serve as standardized, modular chambers for growing a variety
of plants, and are often equipped with LED lighting, vertically stacked hydroponics, smart
climate controls, and monitoring systems.

Deep Farms

A “deep farm” is a vertical farm built from refurbished underground tunnels or abandoned mine
shafts. As temperature and humidity underground are generally temperate and constant, deep
farms require less energy for heating. Deep farms can also use nearby groundwater to reduce the
cost of water supply.

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 Despite low costs, a deep farm can produce 7 to 9 times more food than a conventional farm
above ground on the same area of land, Despite low costs, a deep farm can produce 7 to 9 times
more food than a conventional farm above ground on the same area of land,

Advantages
Agricultural Efficiency

Traditional farming's arable land requirements are too large and invasive to remain sustainable
for future generations. .

Vertical farming also allows for the production of a larger variety of harvestable crops because
of its usage of isolated crop sectors. As opposed to a traditional farm where one type of crop is
harvested per season, vertical farms allow for a multitude of different crops to be grown and
harvested at once due to their individual land plots.

Resistance to Weather

Crops grown in traditional outdoor farming depend on supportive weather and suffer from
undesirable temperatures rain, monsoon, hailstorm, tornado, flooding, wildfires, and drought.

Environmental Conservation

Up to 20 units of outdoor farmland per unit of vertical farming could return to its natural state,
due to vertical farming's increased productivity. Vertical farming would reduce the amount of
farmland, thus saving many natural resources.

Disadvantages

Economics
Power needs
Carbon emission:

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So Nile fresh fruit and vegetabl plc. Planned to use suh thnology transfr as possibl as by
considering the above advantages like figur shown below.
Vertical Farming

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8. Human Resource and Training Requirement

8.1. Human Resource

The list of human resource requirement for the envisaged plantation is stated in table 3 below.

Table 3: Human Resource Requirement

Salary/Wage (Birr)

  Job Title No. Monthly Annual

Manager 1 21,000.00 252,000.00
1
Horticulturists 3 5,500.00 198,000.00
2
Laborers 45 2500.00 1,350,000.00
3
Administration & Finance 1 8,000.00 96,000.00
4
Accountant 1 4,500.00 54,000.00
5
Cashers 1 3800.00 45,600.00
6
Sales Clerks 1 3800.00 45,6000.00
7
Store Keeper 2 2,500.00 60,000.00
8
Driver 1 3,500.00 42,000.00
9
Guards/security 2 2,000.00 48,000.00
10
Total 58 2,145,600.00
Employment Benefits
20% of Annual Salary 429,120.00
Total 2,574,720.00

8.2. Training Requirement

Commercial vegetable plantation is a risky business which requires utmost care. Therefore,
appropriate trainings are imperative for all workers. Annual budget of Birr 53,000 is allotted for
training purpose and it is included in the working capital.

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9. FINANCIAL ANALYSIS

9.1. Underlying Assumption

The financial analysis of vegetable plantation is based on the data provided in the preceding
chapters and the following assumptions.
Construction and Finance

Preparation period 2 year

Capital 30 million(7.5 million equity an 22.5 million

bank loan)
Source of finance 25% equity and 75% bank loan

Bank interest rate 12%

Discount for cash flow 18%

Value of land Based on lease rate of ANRS

Spare Parts, Repair & Maintenance 3% of fixed investment

Depreciation

Building 5%

Machinery and equipment 10%

Office furniture 10%

Vehicles 20%

Pre-production (amortization) 20%

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Working Capital (Minimum Days of Coverage)

Raw Material-Local 30
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

9.2. Investment
The total investment cost of the project including working capital at full capacity is estimated at
Birr 30 million. The Owner shall contribute 25% of the finance in the form of equity while the
remaining 75% is to be financed by bank loan.
Table 4: Initial Investment and Working Capital
Total Initial Investment
Item Cost
Land 400,000.00

Building and civil works 100,000.00

Office equipment 175,000.00

Vehicles 1,250,000.00

Machinery & equipment 240,000.00

Total Fixed Investment 2,165,000.00

Pre -production capital expenditure 38,252.00

Total Initial Investment 2,203,252.00

Working capital at full capacity 133,057.01

Total 2,336,309.01

*Pre-production capital expenditure includes - all expenses for pre-investment studies, consultancy
fee during construction and expenses for company‘s establishment, project administration expenses,
commission expenses, preproduction marketing and interest expenses during construction.

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9. 3 Production Costs
The total production cost at full capacity operation is estimated at Birr 778,168.73 as detailed in
Table 5 below.
Table 5: Production Costs
Total Production Cost at Full Capacity
Items Cost
1.      Raw materials 43,000.00
2.      Utilities 69,650.00

3.      Wages and Salaries 535,680.00

4.      Spares and Maintenance 13,951.20

Factory costs 662,281.20

5.      Depreciation 71,150.40

6.      Financial costs 44,737.13

  Total Production Cost 778,168.73

9.4. Financial Evaluation

I. Profitability

According to the projected income statement attached in the annex part (see annex 3) the project
will generate profit beginning from the first year of operation. Ratios such as the percentage of
net profit to total sales, return on equity and return on total investment are 1.44%, 18.27% and
3.91% in the first year and are gradually rising to 24.80%, 25.14% and 62.85%, respectively. The
first year profit amount Birr 34.95million. Annual profits increases and reach the maximum Birr
38.98million at the tenth year. The income statement and all other profitability indicators show
that the project is viable.
II. Breakeven Analysis

The breakeven point of the project is estimated by using income statement projection.
Accordingly, the project will break even at 63.25% of capacity utilization.
III. Payback Period

22
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 third year of
operation.
IV. Simple Rate of Return
For the envisaged plantation the simple rate of return equals to 20.1%.

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
26.7% and the net present value at 18 % discount is Birr 183,953.44.

VI. Sensitivity Analysis

The envisaged plantation is profitable even with considerable cost increment. That is the
plantation maintains to be profitable starting from the first year when 10 % cost increment takes
place although the total profit drops to Birr 821,701. If sales revenue drops by 10%, total profit
drops to Birr 494,714. However, in both cases the project remains profitable.

10. Economic and Social Benefit and Justification

The envisaged project possesses wide range of benefits where it promotes the socio-economic
goals and objectives stated in the strategic plan of the Amhara National Regional State. These
benefits are listed as follows
A. Profit Generation
The project is found to be financially viable and earns about of Birr 38.8million within the
project life. Such result induces the project promoters to reinvest the profit which, therefore,
increases the investment magnitude in the region.
B. Tax Revenue

In the project life under consideration, the government will collect about Birr 845,530 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

23
 C. Employment and Income Generation

The proposed project is expected to create employment opportunity to 58 citizens of the region
and get an income of birr 2.57 million

D. Pro- Environment Project

The proposed production is environment friendly.

E. Public Health and Nutrition

Eating fresh and clean vegetables improves and public health and nutrition.

F. Modernization of Agriculture

The proposed project compliments to the concerted efforts to modernize and commercialize
Ethiopian agriculture.

24
 ANNEX
Annex 1: Total Net Working Capital Requirements (in Birr)
CONSTRUCTION PRODUCTION
  Year 1 Year 2 1 2 3 4

Capacity Utilization (%) 0.00 0.00 45% 60% 75% 90%

1. Total Inventory 0.00 0.00 1168027.86 1557370.48 1946713.10 2336055.72

Raw Materials in Stock- Total 0.00 0.00 430527.27 574036.36 717545.45 861054.55

Raw Material-Local 0.00 0.00 329400.00 439200.00 549000.00 658800.00

Raw Material-Foreign 0.00 0.00 101127.27 134836.36 168545.45 202254.55

Factory Supplies in Stock 0.00 0.00 4012.84 5350.46 6688.07 8025.68

Spare Parts in Stock and Maintenance 0.00 0.00 1997.31 2663.08 3328.85 3994.63

Work in Progress 0.00 0.00 100321.05 133761.40 167201.75 200642.11

Finished Products 0.00 0.00 200642.11 267522.81 334403.51 401284.21

2. Accounts Receivable 0.00 0.00 471272.73 628363.64 785454.55 942545.45

3. Cash in Hand 0.00 0.00 38514.76 51353.02 64191.27 77029.53

CURRENT ASSETS 0.00 0.00 1247288.08 1663050.77 2078813.46 2494576.15

4. Current Liabilities 0.00 0.00 471272.73 628363.64 785454.55 942545.45

Accounts Payable 0.00 0.00 471272.73 628363.64 785454.55 942545.45

TOTAL NET WORKING CAPITAL REQUIRMENTS 0.00 0.00 776015.35 1034687.13 1293358.92 1552030.70

INCREASE IN NET WORKING CAPITAL 0.00 0.00 776015.35 258671.78 258671.78 258671.78

1
 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 2595617.46 2595617.46 2595617.46 2595617.46 2595617.46 2595617.46

Raw Materials in Stock-Total 956727.27 956727.27 956727.27 956727.27 956727.27 956727.27

Raw Material-Local 732000.00 732000.00 732000.00 732000.00 732000.00 732000.00

Raw Material-Foreign 224727.27 224727.27 224727.27 224727.27 224727.27 224727.27

Factory Supplies in Stock 8917.43 8917.43 8917.43 8917.43 8917.43 8917.43

Spare Parts in Stock and Maintenance 4438.47 4438.47 4438.47 4438.47 4438.47 4438.47

Work in Progress 222935.67 222935.67 222935.67 222935.67 222935.67 222935.67

Finished Products 445871.35 445871.35 445871.35 445871.35 445871.35 445871.35

2. Accounts Receivable 1047272.73 1047272.73 1047272.73 1047272.73 1047272.73 1047272.73

3. Cash in Hand 85588.36 85588.36 85588.36 85588.36 85588.36 85588.36

CURRENT ASSETS 2771751.28 2771751.28 2771751.28 2771751.28 2771751.28 2771751.28

4. Current Liabilities 1047272.73 1047272.73 1047272.73 1047272.73 1047272.73 1047272.73

Accounts Payable 1047272.73 1047272.73 1047272.73 1047272.73 1047272.73 1047272.73

TOTAL NET WORKING CAPITAL REQUIRMENTS 1724478.55 1724478.55 1724478.55 1724478.55 1724478.55 1724478.55

INCREASE IN NET WORKING CAPITAL 172447.86 0.00 0.00 0.00 0.00 0.00

2
 Annex 2: Cash Flow Statement (in Birr)
CONSTRUCTION PRODUCTION
  Year 1 Year 2 1 2 3 4
TOTAL CASH INFLOW 712005.00 2436483.55 4791272.73 5917090.91 7357090.91 8797090.91
1. Inflow Funds 712005.00 2436483.55 471272.73 157090.91 157090.91 157090.91
Total Equity 284802.00 974593.42 0.00 0.00 0.00 0.00
Total Long Term Loan 427203.00 1461890.13 0.00 0.00 0.00 0.00
Total Short Term Finances 0.00 0.00 471272.73 157090.91 157090.91 157090.91
2. Inflow Operation 0.00 0.00 4320000.00 5760000.00 7200000.00 8640000.00
Sales Revenue 0.00 0.00 4320000.00 5760000.00 7200000.00 8640000.00
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
TOTAL CASH OUTFLOW 712005.00 712005.00 5368384.99 5826216.57 7243455.98 8498595.50
4. Increase In Fixed Assets 712005.00 712005.00 0.00 0.00 0.00 0.00
Fixed Investments 678100.00 678100.00 0.00 0.00 0.00 0.00
Pre-production Expenditures 33905.00 33905.00 0.00 0.00 0.00 0.00
5. Increase in Current Assets 0.00 0.00 1247288.08 415762.69 415762.69 415762.69
6. Operating Costs 0.00 0.00 3655218.39 4868913.85 6082609.31 7296304.77
7. Corporate Tax Paid 0.00 0.00 0.00 0.00 241325.81 320551.73
8. Interest Paid 0.00 0.00 465878.53 226691.18 188909.31 151127.45
9.Loan Repayments 0.00 0.00 0.00 314848.86 314848.86 314848.86
10.Dividends Paid 0.00 0.00 0.00 0.00 0.00 0.00
Surplus(Deficit) 0.00 1724478.55 -577112.27 90874.34 113634.93 298495.41
Cumulative Cash Balance 0.00 1724478.55 1147366.29 1238240.63 1351875.55 1650370.96

Annex 2: Cash Flow Statement (in Birr): Continued

3
 PRODUCTION
  5 6 7 8 9 10
TOTAL CASH INFLOW 9704727.27 9600000.00 9600000.00 9600000.00 9600000.00 9600000.00
1. Inflow Funds 104727.27 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 104727.27 0.00 0.00 0.00 0.00 0.00
2. Inflow Operation 9600000.00 9600000.00 9600000.00 9600000.00 9600000.00 9600000.00
Sales Revenue 9600000.00 9600000.00 9600000.00 9600000.00 9600000.00 9600000.00
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
TOTAL CASH OUTFLOW 9187951.85 8897398.02 8870950.72 8529654.56 8529654.56 8529654.56
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 277175.13 0.00 0.00 0.00 0.00 0.00
6. Operating Costs 8105435.08 8105435.08 8105435.08 8105435.08 8105435.08 8105435.08
7. Corporate Tax Paid 377147.20 401550.36 412884.92 424219.48 424219.48 424219.48
8. Interest Paid 113345.59 75563.73 37781.86 0.00 0.00 0.00
9. Loan Repayments 314848.86 314848.86 314848.86 0.00 0.00 0.00
10.Dividends Paid 0.00 0.00 0.00 0.00 0.00 0.00
Surplus(Deficit) 516775.42 702601.98 729049.28 1070345.44 1070345.44 1070345.44
Cumulative Cash Balance 2167146.38 2869748.36 3598797.64 4669143.09 5739488.53 6809833.98

4
 Annex 3: DISCOUNTED CASH FLOW-TOTAL CAPITAL INVESTED
CONSTRUCTION PRODUCTION
  Year 1 Year 2 1 2 3 4
TOTAL CASH INFLOW 0.00 0.00 4320000.00 5760000.00 7200000.00 8640000.00

1. Inflow Operation 0.00 0.00 4320000.00 5760000.00 7200000.00 8640000.00

Sales Revenue 0.00 0.00 4320000.00 5760000.00 7200000.00 8640000.00

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

TOTAL CASH OUTFLOW 712005.00 712005.00 4431233.74 5127585.63 6582606.91 7875528.29

3. Increase in Fixed Assets 712005.00 712005.00 0.00 0.00 0.00 0.00

Fixed Investments 678100.00 678100.00 0.00 0.00 0.00 0.00

Pre-production Expenditures 33905.00 33905.00 0.00 0.00 0.00 0.00

4. Increase in Net Working Capital 0.00 0.00 776015.35 258671.78 258671.78 258671.78

5. Operating Costs 0.00 0.00 3655218.39 4868913.85 6082609.31 7296304.77

6. Corporate Tax Paid 0.00 0.00 0.00 0.00 241325.81 320551.73

NET CASH FLOW -712005.00 -712005.00 -111233.74 632414.37 617393.09 764471.71

CUMMULATIVE NET CASH FLOW -712005.00 -1424010.00 -1535243.74 -902829.37 -285436.27 479035.44

Net Present Value (at 18%) -712005.00 -603394.07 -79886.34 384906.91 318444.49 334157.63

Cumulative Net present Value -712005.00 -1315399.07 -1395285.40 -1010378.50 -691934.01 -357776.38

5
 Annex 3: DISCOUNTED CASH FLOW-TOTAL CAPITAL INVESTED (Continued)
PRODUCTION
  5 6 7 8 9 10
TOTAL CASH INFLOW 9600000.00 9600000.00 9600000.00 9600000.00 9600000.00 9600000.00

1. Inflow Operation 9600000.00 9600000.00 9600000.00 9600000.00 9600000.00 9600000.00

Sales Revenue 9600000.00 9600000.00 9600000.00 9600000.00 9600000.00 9600000.00

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

TOTAL CASH OUTFLOW 8655030.14 8506985.44 8518320.00 8529654.56 8529654.56 8529654.56

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 172447.86 0.00 0.00 0.00 0.00 0.00

5. Operating Costs 8105435.08 8105435.08 8105435.08 8105435.08 8105435.08 8105435.08

6. Corporate Tax Paid 377147.20 401550.36 412884.92 424219.48 424219.48 424219.48

NET CASH FLOW 944969.86 1093014.56 1081680.00 1070345.44 1070345.44 1070345.44

CUMMULATIVE NET CASH FLOW 1424005.30 2517019.87 3598699.87 4669045.31 5739390.76 6809736.20

Net Present Value (at 18%) 350046.64 343124.63 287768.16 241315.88 204504.98 173309.31

Cumulative Net present Value -7729.73 335394.90 623163.06 864478.94 1068983.92 1242293.23

Net Present Value (at 18%) 1,242,293.23

Internal Rate of Return 32.2%

Annex 4: NET INCOME STATEMENT ( in Birr)

6
 PRODUCTION
  1 2 3 4 5
Capacity Utilization (%) 45% 60% 75% 90% 100%

1. Total Income 4320000.00 5760000.00 7200000.00 8640000.00 9600000.00

Sales Revenue 4320000.00 5760000.00 7200000.00 8640000.00 9600000.00
Other Income 0.00 0.00 0.00 0.00 0.00
2. Less Variable Cost 3554513.59 4739351.45 5924189.31 7109027.17 7898919.08
VARIABLE MARGIN 765486.41 1020648.55 1275810.69 1530972.83 1701080.92
(In % of Total Income) 17.72 17.72 17.72 17.72 17.72
3. Less Fixed Costs 224766.80 253624.40 282482.00 311339.60 330578.00
OPERATIONAL MARGIN 540719.61 767024.15 993328.69 1219633.23 1370502.92
(In % of Total Income) 13 13 14 14 14
4. Less Cost of Finance 465878.53 226691.18 188909.31 151127.45 113345.59
5. GROSS PROFIT 74841.08 540332.98 804419.38 1068505.78 1257157.33
6. Income (Corporate) Tax 0.00 0.00 241325.81 320551.73 377147.20
7. NET PROFIT 74841.08 540332.98 563093.56 747954.04 880010.13
RATIOS (%)  
Gross Profit/Sales 2% 9% 11% 12% 13%
Net Profit After Tax/Sales 2% 9% 8% 9% 9%
Return on Investment 25% 31% 28% 30% 32%
Return on Equity 6% 43% 45% 59% 70%

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

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

1. Total Income 9600000.00 9600000.00 9600000.00 9600000.00 9600000.00

Sales Revenue 9600000.00 9600000.00 9600000.00 9600000.00 9600000.00
Other Income 0.00 0.00 0.00 0.00 0.00
2. Less Variable Cost 7898919.08 7898919.08 7898919.08 7898919.08 7898919.08
VARIABLE MARGIN 1701080.92 1701080.92 1701080.92 1701080.92 1701080.92
(In % of Total Income) 18 18 18 18 18
3. Less Fixed Costs 287016.00 287016.00 287016.00 287016.00 287016.00
OPERATIONAL MARGIN 1414064.92 1414064.92 1414064.92 1414064.92 1414064.92
(In % of Total Income) 15 15 15 15 15
4. Less Cost of Finance 75563.73 37781.86 0.00 0.00 0.00
5. GROSS PROFIT 1338501.19 1376283.06 1414064.92 1414064.92 1414064.92
6. Income (Corporate) Tax 401550.36 412884.92 424219.48 424219.48 424219.48
7. NET PROFIT 936950.84 963398.14 989845.44 989845.44 989845.44
RATIOS (%)  
Gross Profit/Sales 14% 14% 15% 15% 15%
Net Profit After Tax/Sales 10% 10% 10% 10% 10%
Return on Investment 32% 32% 31% 31% 31%
Return on Equity 74% 76% 79% 79% 79%

Annex 5: Projected Balance Sheet (in Birr)

8
 CONSTRUCTION PRODUCTION
  Year 1 Year 2 1 2 3 4
TOTAL ASSETS 712005.00 3148488.55 3694602.36 4077177.39 4482513.01 5072709.11
1. Total Current Assets 0.00 1724478.55 2394654.36 2901291.39 3430689.01 4144947.11
Inventory on Materials and Supplies 0.00 0.00 436537.43 582049.90 727562.38 873074.86
Work in Progress 0.00 0.00 100321.05 133761.40 167201.75 200642.11
Finished Products in Stock 0.00 0.00 200642.11 267522.81 334403.51 401284.21
Accounts Receivable 0.00 0.00 471272.73 628363.64 785454.55 942545.45
Cash in Hand 0.00 0.00 38514.76 51353.02 64191.27 77029.53
Cash Surplus, Finance Available 0.00 1724478.55 1147366.29 1238240.63 1351875.55 1650370.96
Securities 0.00 0.00 0.00 0.00 0.00 0.00
2. Total Fixed Assets, Net of Depreciation 712005.00 1424010.00 1299948.00 1175886.00 1051824.00 927762.00
Fixed Investment 0.00 678100.00 1356200.00 1356200.00 1356200.00 1356200.00
Construction in Progress 678100.00 678100.00 0.00 0.00 0.00 0.00
Pre-Production Expenditure 33905.00 67810.00 67810.00 67810.00 67810.00 67810.00
Less Accumulated Depreciation 0.00 0.00 124062.00 248124.00 372186.00 496248.00
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
TOTAL LIABILITIES 712005.00 3148488.55 3694602.36 4077177.39 4482513.01 5072709.11
5. Total Current Liabilities 0.00 0.00 471272.73 628363.64 785454.55 942545.45
Accounts Payable 0.00 0.00 471272.73 628363.64 785454.55 942545.45
Bank Overdraft 0.00 0.00 0.00 0.00 0.00 0.00
6. Total Long-term Debt 427203.00 1889093.13 1889093.13 1574244.28 1259395.42 944546.57
Loan A 427203.00 1889093.13 1889093.13 1574244.28 1259395.42 944546.57
Loan B 0.00 0.00 0.00 0.00 0.00 0.00
7. Total Equity Capital 284802.00 1259395.42 1259395.42 1259395.42 1259395.42 1259395.42
Ordinary Capital 284802.00 1259395.42 1259395.42 1259395.42 1259395.42 1259395.42
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 74841.08 615174.06 1178267.62
9.Net Profit After Tax 0.00 0.00 22,425,000 27,600,000 34,500,000 34,500,000
Dividends Payable 0.00 0.00 0.00 0.00 0.00 0.00
Retained Profits 0.00 0.00 74841.08 27,600,000 34,500,000 34,500,000

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

9
 PRODUCTION
  5 6 7 8 9 10
TOTAL ASSETS 5742597.66 6364699.64 7013248.92 8003094.37 8992939.81 9982785.26
1. Total Current Assets 4938897.66 5641499.64 6370548.92 7440894.37 8511239.81 9581585.26
Inventory on Materials and Supplies 970083.17 970083.17 970083.17 970083.17 970083.17 970083.17
Work in Progress 222935.67 222935.67 222935.67 222935.67 222935.67 222935.67
Finished Products in Stock 445871.35 445871.35 445871.35 445871.35 445871.35 445871.35
Accounts Receivable 1047272.73 1047272.73 1047272.73 1047272.73 1047272.73 1047272.73
Cash in Hand 85588.36 85588.36 85588.36 85588.36 85588.36 85588.36
Cash Surplus, Finance Available 2167146.38 2869748.36 3598797.64 4669143.09 5739488.53 6809833.98
Securities 0.00 0.00 0.00 0.00 0.00 0.00
2. Total Fixed Assets, Net of Depreciation 803700.00 723200.00 642700.00 562200.00 481700.00 401200.00
Fixed Investment 1356200.00 1356200.00 1356200.00 1356200.00 1356200.00 1356200.00
Construction in Progress 0.00 0.00 0.00 0.00 0.00 0.00
Pre-Production Expenditure 67810.00 67810.00 67810.00 67810.00 67810.00 67810.00
Less Accumulated Depreciation 620310.00 700810.00 781310.00 861810.00 942310.00 1022810.00
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
TOTAL LIABILITIES 5742597.66 6364699.64 7013248.92 8003094.37 8992939.81 9982785.26
5. Total Current Liabilities 1047272.73 1047272.73 1047272.73 1047272.73 1047272.73 1047272.73
Accounts Payable 1047272.73 1047272.73 1047272.73 1047272.73 1047272.73 1047272.73
Bank Overdraft 0.00 0.00 0.00 0.00 0.00 0.00
6. Total Long-term Debt 629697.71 314848.86 0.00 0.00 0.00 0.00
Loan A 629697.71 314848.86 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 1259395.42 1259395.42 1259395.42 1259395.42 1259395.42 1259395.42
Ordinary Capital 1259395.42 1259395.42 1259395.42 1259395.42 1259395.42 1259395.42
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 1926221.67 2806231.80 3743182.64 4706580.78 5696426.22 6686271.66
9. Net Profit After Tax 34,500,000 36,950,000 37,398,000 38,984,500 38,984,500 38,984,500
Dividends Payable 0.00 0.00 0.00 0.00 0.00 0.00
Retained Profits 34,500,000 36,950,000 37,398,000 38,984,500 38,984,500 38,984,500

10