Executive summary

Abeje Yenesew Zeleke engaged in different types of business activities such as exporting grains spices and oil seeds to
foreign countries & importing Ceramic products and other scarce products. Currently our company is planning to
actively involved in exporting Ethiopian agro products such as ,oil seeds, grains, pulses and spices. Of the soil
seeds,sesame seeds are the major and primary products of our export while Sesame seeds, soya beans, check pea, red
beans, cream beans, white spiked beans, white kidney beans and green mungs are secondary for our export and highly
demanded in the traditional market. Moreover as an importer, the company plans to import various scare products to our
country. For instance, electrical materials, building materials and other capital goods in the near future. The company
plans to construct the new facility to achieve maximum purchase and sales volume within three years of operation.

The entrepreneur, Ato Abeje Yenesew is young capable and highly experienced person in different small business
activities and now he is becoming an exporter in our country. Currently the company wants to expand its business and
enter in the international market to be the best leader and to contribute a lot for the development of the country by
achieving the company goal. so the company’s performance will be improved through.

1. Increasing its profit margin with the use of improved technology in the new facility.
2. Effectively communicating to current and potential customers to satisfy them by providing the highest quality
grains, pulses and oil seeds.
3. Hiring trained energetic and motivated manpower that fetches and implement the global technology to provide
the best customer satisfaction.
1.1 Objectives
The objective of the company:
 To export 1,710 mt in this year of operation at the proposed facility and reach maximum capacity of 3,847
mt by 2016 E.C.
 Increasing the purchasing volume from 1,744 mt to 3,924 mt assuming that the company will maintain its
own ending inventory for the projected years.
 Increase sales volume substantially from the second year of operation.
 Establish strategic relationships with foreigner customers: European, Asian, and countries such as, China,
Singapore and American importers and others.
 To maintain a gross margins of 17 %
 To maintain the existing suppliers and customers and attract the potential customers and suppliers by
providing superior and quality products.
 To hire skilled and experienced manpower that fetches and adapt the new technology which is desired for our
company to manage our business in successful condition.

1.2 Vision
The vision of the company is to become well recognized Ethiopian company by providing superior quality products
through integrated and professional teams with customer satisfaction as the main objectives.

1.3 Mission
Abeje Yenesew Zeleke seeks to serve agro product importers and producers by exceeding minimum acceptable
quality standards and by providing the highest quality product with reasonable price. We value our relationships with
current and future customers and hope to communicate our appreciation to them throughout our outstanding,
guaranteed product quality, personal service and efficient delivery. Our commitment to our customers will be
reflected through honest and responsible business relationship.

1.4 Keys to success

The company will achieve its objective by:
 Establishing and maintaining smooth working relationship and contractual agreements with European,
American and Asian importers and Ethiopian agro product brokers, producers and Whole sellers.
 Bringing the new facility to maximum production within three years of operation.

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  Increasing our profit margin with the use of improved technology and the new facility.
 Effectively communicating to current and potential customers.
 Providing differentiated products of the highest quality of agro products.

1.5 Company Summary

 Our company is the potential buyer and seller of Ethiopian grains, oil seeds, spice, pulses and other agro
products. The clean and neat products, whitish humera sesame seed, whitish wolega sesame seed, Red beans
are sold to, China, India, Pakistan, Singapore, Egypt, Israel and other Asian countries market.
 Our customers are primarily Arabians countries, Singapore, China, Israel, European country importers and
Ethiopian farmers and wholesalers who provide high quality products to the market.

2. Background of the company

Abeje Yenesew Zeleke is a local and established company which has licensed since 2006 E.C with an initial paid
up capital of Birr 400,000 (Four hundred birr). The company is formed and established to engage in different
business activities and its office is located at Kerkos sub city.

2.1 Company Facilities

 The company has rented warehoused from Quarit Agro Industtry in Amhara regional state at Bahir Dar.
 The company has intended to construct its own warehoused in the year 2016 e.c..

2.2 Man power planning

Since manpower is a key factor for the sustainable growth of the economy, its desirable plan is to recruit trained and
skilled manpower. The company plans to train the existing employees and hire energetic and motivated staff to achieve
the objective of our company. For the time being Ato Abeje Yenesew is the general manager who leads the overall
activities of the company supported by advice from expertise who have ample knowledge and experience about the
activity and the nature of the business. The general operation and the administration part of the company is controlled by
Ato Awoke Simeneh who is the procurement and logistic manager while the finance activities of the company is also
headed by Hana Alemayehu who follow of the day to day activities. The table below shows the required number of
manpower along with their positions and salaries to be incurred for each projected years.

S.no Years 2013 2014 2015

Description Qty. Unit Gross Qty. Unit Gross Qty. Unit Gross
salary salary salary salary salary salary
1 Deputy manager 1 10,000 20,000 1 11,000 132,000 1 12,100 145,200
2 Finance manager 1 8,000 16,000 1 8,800 105,600 1 9,680 116,160
3 Marketing manager 1 8,000 16,000 1 8,800 105,600 1 9,680 116,160
4 General service head 1 5,000 10,000 1 5,500 66,000 1 6,050 72,600
5 Legal adviser 1 1,000 2,000 1 1,100 13,200 1 1,210 14,520
6 Executive secretary 1 4,000 8,000 1 4,400 52,800 1 4,840 58,080
10 Cashier 1 2,500 5,000 1 2,750 33,000 1 3,025 36,300
11 Driver 1 2,000 4,000 1 2,200 26,400 1 2,420 29,040
12 Janitorial 1 1,200 2,400 1 1,320 15,840 1 1,452 17,424
13 Machine operator 6 7,000 504,000
14 Store head 1 3,000 6,000 1 3,300 39,600 1 3,660 43,920
16 Guards 3 2,000 6,000 3 2,200 79,200 3 2,420 87,120
Total salary to be paid 101,400 669,240 1,240,524
This table only shows employees that are professional corresponding with their salary and who can lead the company in
proper ways. Ato Abeje Yenesew who is the owner and general manager of the company is not included in the summary
because he withdraws his personal consumption income from the profit the company so that salary is not maintained to
him in the payroll table. This table also considers the yearly salary increment for each employee so as to motivate each
subordinates and managers.

2.2.1 Senior Management profile of the company. (profile is attached separately)

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 s.no Name of staff Position Qualification Experience
1 Abeje Yenesew General manager Degree 13years of exprience
2 Awoke Simeneh Commercial Manager Degree 5 years of exprience
3 Hana Alemayehu Finance Degree 5 years of exprience
4 Haymanot Bekele Admin &general service Degree 5 years of exprience

2.3 Source of finance

The company maintains initial cash balance of birr 12,317,431.11 and wants to obtain its remaining working capital from
its initial investment from contribution of member and the financial institution or banks. As its shown below the
company needs birr 25,000,000 (Twenty five million birr) preshipment loan to run its operation in the first year of
operation. Since the company plans to expand its operation year to year the additional source of finance from
preshipment loan should be increased to birr 40,000,000 (Forty million) and 60,000,000 (Sixty million) for the years
2014 ,2015 and 2016 respectively. The table below depicts the additional working capital and preshipment loan required
for the projected years. As mentioned above, the company plans to construction its own warehouse and purchase clearing
machine to improve its efficiency, competition and ultimately its profitability.

Years 2014 2015 2016

Initial working capital 12,317,431.11
Preshipment Loan -Existing 9,145,235.10 - -
Bank over draft - Existing - - -
Preshipment Loan -New 25,000,000.00 40,000,000 60,000,000
Bank over draft - New - - -
Total

2.3.1Cost break down

Description Years
2014 2015 2016
Purchasing Cost 105,223,000 173,615,200 286,465,080
Selling & Distribution 7,695,000 12,129,625 19,085,928.75
Cost
Administrative Cost 3,210,016.56 4,519,811.81 8,216,385.86
Total cost 116,128,016.56 190,264,636.81 313,767,394.61

The company managers suggest that the pre shipment loan will be revolved one a year in 2014 and Three times in 2015
and 2016 so that the 70% of the purchasing cost including 80 percent of selling and distribution cost should be covered
by the revolving loan which will be obtained from bank and the remaining 30% of selling and distribution cost,
purchasing cost and 100% of administrative cost will be covered by the company for each planned periods.

2.4 Technology

 Improvements in technology will include the use of partially automated selecting machines which will allow for
increased production capacity with a lower machine-to-operator ratio than we currently employee. Additional
storage capabilities will decrease shipping charges and will reduce the need for permanent shipping employees.
High-technology information system will improve all aspects of business, especially inventory control, tracking
of shipments, and communication with clients in importing countries.

3. Supply and Demand

3.1 Supply

 Both the existing and the proposed facilities are ideally located in Ethiopia in each state of the country. Humera is
the largest sesame seed producing region in the country with the highest quality and organic in nature. Grains and
spices are produced in all over the country’s region. With additional financing from financial institutions, we
would be able to buy larger volumes at a reasonable price. Now, we can buy sesame seed, green mung, soya bean

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 and kidney beans from Ethiopian Commodity Exchange market from many suppliers or cooperatives and we can
buy other grains and spices from large farm owners, small farmers and traders.
 Sesame seed is the largest market commodity next to coffee and Ethiopia is one of the largest producers of
organic sesame seed and grains in the world.
 Ethiopia is also rich in grains and spices production in each region of the country. And these products are also
organic in natures which are suitable for human and animal consumption.

3.2 Supply Analysis

The Ethiopian economy remains heavily dependent on agriculture, which accounts for about 42percent of GDP. Ninety
(90) percent of exports and almost 80 percent of the populations’ livelihood is directly or indirectly depends upon
agricultural outputs. Although coffee is the leading item in the export market, other agricultural products mainly oilseeds
and pulses are being emerged and exported at an increasing rate since the past few years.

Data’s from Ethiopian ministry of agriculture revealed that oilseed and pulse export accounts the second largest share of
export market in Ethiopia and generates 446 million dollar foreign currency to our country in the year 2012/13 e.c. This
shows a 20 percent growth compared to that of last fiscal year. From this entire foreign currency, sesame seed accounts
the highest share of export value i.e. 87% of earning. The agriculture sector has historically been the engine of the
Ethiopian economy. Foregn currency earnings of the country have recenty reduce for many reasons mainly black market
influence.

Ethiopia has an attractive portfolio of high value of specialties in oilseeds for export market. It is among the top four
producing countries for sesame seed. Oilseeds are important agricultural commodities widely grown in Ethiopia. Major
oilseeds are sesame seeds, ground nuts, soya beans, rapeseed, niger seed, green mug, linseed, sunflower, cottonseed and
others. Oilseeds are partly used for domestic extraction where as the majority of production is exported to international
markets for oil extraction and animal feeds oilseed, pulse and coffee exports has been a growing industry for the past five
years. The most notable growth has been observed in the Ethiopian market where exports have increased almost by one-
hundred fifty percent and the market price has nearly doubled. The number of oilseeds, pulse and coffee buyers has
increased from a handful of well known companies to hundreds of independent entities. There is a constant struggle
within this market to produce the best sesame seed, pulse and coffee as well as serve one or more niches within the
international market. Ethiopian oilseed, pulse and coffee growers and exporters have made great efforts to improve
agricultural techniques, processing methods, and distribution in order to better serve this growing market. Demand for
Ethiopian oilseed, pulse and coffee is currently greater than supply.

3.3 Demand Analysis

Although COVID 19 exert significant influence in the last 1 years in the ecomomic activities of almost the whole world,
conditions are being improved considerably this time. Importers of sesame seed and grains such as, Asian and Europeans
country have increased to ninety four percent in the past ten to fifteen years. In addition, demand for oilseeds and grains
is above the market clearing level, and market price and crop yield estimates are at all time high.

The increase in the number of independent importers of Asia, Europeans and Arabian countries, and exporters of
Ethiopian has contributed to and is an indicator of the increased demand for sesame seed, pulses and grains in the world.
Our target is exporting Ethiopian agro products with specialty oil seeds and grains in large quantity. These discerning
customers want the highest quality oil seeds and grains. They serve the growing oil seed market and are represented by
large Asian, Arabians and European companies like; Himatsing International pvt.Ltd, Agro crop International pvt.Ltd.
and thousand of oil manufacturing and food processing companies. The humera sesame seed is considered to be the best
for oil production in the world and as such, the demand for humera sesame seed is high in the market. Oil manufactures
and food processing companies are willing to pay more for humera sesame seed and grain, attempt to distinguish
themselves via the characteristics of the oil seed and grains they use i.e. the location in which it was grown, farming
methods, seed and bean size, etc. The final consumer is relatively price insensitivities if the oil seeds and food items are
good, has won awards, or is compatible with a popular trend. We estimate that oil seeds and grains are highly and
substantially demanded in the world market. As we have taken data from the Central Statistics Authority of Ethiopia,
there is an increase trend of exporting our products to different parts of foreign countries in the years 2013, 2014 and
2015 g.c. The schedule below shows this trend.

Years 2013 2014 2015

Commodity QT in MT Values In Birr QT in MT Values In Birr QT in MT Values In Birr
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 Sesame 273,393 4,135,123,765 297,14 5,545,849,643 316,659 7,349,781,715
seed
Kidney 81,338 521,260,089 94,996 809,551,603 110,354 1,129,932,001
beans
Chick peas 47,086 273,753,380 60,692 480,185,586 82,274 978,925,595
Migibar Data

Taken from the central Statistics Authority of Ethiopia.

4. Market Segmentation

The potential customer groups for Abeje Yenesew Zeleke business are:

 China, Israel, India, Pakistan, Yemen, Bahrain, Egypt, Singapore, Indonesia, Saudi Arabia, Turkish,
Jordan, Korea, Japan and other European countries importers of oilseed and grains: Market research
suggests that there are so many importers of oilseeds and grains on such countries that would be able to handle
the quantities of our shipments.
 Ethiopian oilseed and grain wholesaler: This market serves as a safety value for our export business. By
maintaining strong relationship with Ethiopian wholesalers we have an alternative market with established
distribution channels.
 African, Asian and European oil extractors: As we move towards maximum capacity we will plan
aggressively target these audiences. We hope to eventually reduce transactions with wholesalers and capture
their value-added costs as profit. We anticipate that this effort will begin approximately three years into
operation of the new operation of new facility.
 China, United States, Germany and other Ethiopian oil consumers

4.1 Competitive Comparison

 In order to differentiate our product, from the products offering of competitors, all oil seeds and grains are
fresh and are shipped within fifteen days of operation and keeping it constant. In additional, all oilseeds and
grains are sorted at ninety-seven percent purity and above. The export commodities shipped by Abeje
Yenesew Zeleke are clean and neat and are guaranteed fresh. In addition, all of the farms from which the
company acquires its products are adhered to environmentally sound farming practices and avoid the use of
pesticides and chemicals in crop production.
 There are approximately 200 competitors who offer a product similar to ours. With the additional capacity,
we would be intended to become one of the recognized in terms of quantity providers in the near future.
 We have dealt with Ethiopian wholesaler from Ethiopia Commodity Exchange for international sales each
year. Sales to this point have been handled through personal selling to the existing and potential customers.
 We also have dealt with Ethiopian farmers and small trader for each product to buy grains and spices with a
reasonable price.
 Contact will be through a website, phone direct mails to manufacturing and importers, using local brokers
and advertising in several trade fairs.

4.2 Main Competitors

There are approximately one hundred fifty exporters of oilseed, pulse and grains in Ethiopia. According to the Ethiopian
Pulses, Oilseeds Processors Exporters Association (EPOSPEA), fifty percent of all oilseed and pulses exports come from
six members. However, based on the information obtained from EPOSPEA, the remaining 50% of oilseed and grains
export is covered by the rest exporters. Many of the largest competitors are among the EPOSPEA members. To mention
a few, the following are the major ones:

S/n Name of organization

1 Guna Trading P.L.C
2 Warka trading house P.L.C
3 Belayneh kindie Import and Export
4 Ethiopian grain enterprise
5 Tideg International Pvt. Ltd. Co.
6 C.G.F Business Group P.L.C
7 Ambasel trading house

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 8 Alnur Import & Export industrial group P.L.C and others
9 Yibelu Mossiwa Import and Export
10 Bahran Trading
11 Others

We suggest that with the additional capacity, we would become one of the best competitors of exporters, in terms of
quality of exports.

4.3 Distribution Patterns

Distribution is one of the greatest challenges faced by our company. The distribution system of Ethiopia is largely
outdated and inefficient. Distribution costs for exports are absorbed by us. Increasing the volume of our exports makes us
eligible to receive reduced fees and helps ensure that trucks and rail cars are running at maximum capacity.

All products for our export are shipped from Port of Djibouti and Sudan. The cleaned packed sesame seed and grains are
shipped via truck from our storage to the ports. From the port it is then shipped, on 40 or 20 foot containers to the port of
destination in cargo ships. Distribution charges are assumed by Abeje Yenesew Zeleke up to the arrival of the shipments
in Djibouti and Sudan ports where upon importers assume responsibilities as detailed in contract of the shipment and
additional distribution charges from the port on wards.

5.1 Marketing

Our company marketing strategy will include the use of targeted print media advertising and direct selling to importers of
our products who provide oils and processed foods to the dealers. We will capitalize on existing relationships with
importers who have stated their willingness to contact us and recommend our products. We have positioned ourselves as
a differentiated provider of the highest quality oil seeds and grains. The primary goal of all marketing efforts will be to
communicate this to existing and potential customers.

Relationships are keys to success in the export business. Importers in Europe, America, Asia such as, China, Singapore,
India in Africa Egypt have on several occasions visited our products, and farms from which oil seeds and grains are
purchased. Additional accounts and contacts selling will remain our most important means of promotion through
personal contact. Personal selling will remain our most important means of promotion. Ato Abeje Yenesew will continue
to lead this effort. In addition to personal selling, our company has identified several specialty publications within print
advertisement will run. Direct mail, in the form of personal letters will also be used to communicate with existing and
potential clients.

5.1.2 Sales Strategy

Abeje Yenesew Zeleke strategy focuses first on meeting the increased demand from importers with whom we have
established relationships for larger orders. These importers are critical to our ability to acquire additional accounts
without having to spend a great deal on sales efforts. Secondly we will focus on increasing the volume, while
maintaining the percentage of sales of oil seeds and grains sold to international market. When we have reached maximum
sales to existing channels, we can then shift the majority of our focus to securing additional import accounts.

5.1 Sales Forecast and cost forecast.

The company projects the current and future sales and purchase by considering the past export operation of the country.
Export in Ethiopia generally increased to 686.10 USD millon in the first quarter of 2020 from 584.20 USD million in the
fourth quarter of 2019.

By taking in to account this reality, the company forecasts its sales, purchase and other related expenditures to earn the
expected foreign currency to our country. In addition to oil seeds products, our company wants to export grains as well.
We project a healthy growth in sales, purchases and expenditures in 2014,2015 and 2016 e.c. to reach maximum capacity
in the year 2016. Based on this plan and other data, we prepare the forecasted financial statements as follow.

5.2.1 Sales Qty budget

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 Years 2014 2015 2016
Commodity Quantity in mt Quantity in mt Quantity in mt
Humera Sesame seed 1,140 1,710 2,565
Wolega Sesame Seeds 570 855 1,282

Totals 1,710 2,565 3,847

5.2.2 Purchase Qty budget

Years 2014 2015 2016

Commodity Quantity in mt Quantity Quantity
Humera Sesame seed 1,163 1,744 2,616
Wolega Sesame Seeds 581 872 1,308

Totals 1,744 2,616 3,924

- 2% of purchased quantity will be assumed to be reduced during clearing process. i.e. sales qty will be less
by 2% from purchased quantity.
- Sales and purchase turn over will be three times in the years.

5.2.2. Basic assumptions. Through further investigation of relevant datas and considering the current market and
company’s condition change in small rate, we have estimated the cost of commodities and related expenditures on
average as stated bellow.

The purchasing cost of Humera sesame seeds and Welega Sesame seeds per MT on average is birr 62,000 and 57,000
respectively for the first year of operation which is assumed to increase by 10 % every year and the company plans to
increase its gross margin by 18 % for each projected year and other related costs are assumed as follows as estimate
given by export association.

1. All Export Related expenditures for sesame seed per MT is assumed to be birr 4,500
2. Annual administrative expenses are projected by talking data from the market as a percentage of gross sales for
each projected years.
3. Selling and distributing costs are increased by 5% every year.

Budget Summary
SCHEDULE OF SALES FORECAST

Years Unit 2014 e.c 2015 e.c 2016 e.c

Commodity
Humera Mt 1,140 76,000 86,640,000 1,710 83,600 142,956,000 2,565 91,960 235,877,400
Sesame
seed
Wolega Mt 570 72,000 41,040,000 855 79,200 67,716,000 1,282 87,120 111,687,840
Sesame
seeds

Totals 1,710 127,680,000 2,565 210,672,000 3,847 347,565,240

SCHEDULE OF PURCHASE FORCAST

Years Uni 2014 2015 2016

t
Commodity Mt

7
Humera Mt 1,16 62,000 72,106,000 1,744 68,200 118,940,800 2,616 75,020 196,252,320
Sesame seed 3
Wolega Mt 581 57,000 33,117,000 872 62,700 54,674,400 1,308 68,970 90,212,760
Sesame
seeds

Totals 1,7 105,223,00 2,616 173,615,200 3,924 286,465,080

44 0

Years 2014 2015 2016

Gross profit 22,457,000 37,056,800 61,100,160
Gross profit 0.18 0.18 0.18
margin

Computation of Reject expenses

Qty in MT Cost/MT 2014 e.t
23 62,,000 1,426,000
11 57,000 627,000
34 - 2,053,000

Qty in MT Cost/MT 2015 e.t

34 68,200 2,318,800
17 62,700 1,065,900
51 - 3,384,700

Qty in MT Cost/MT 2016 e.t

51 75,020 3,826,020
26 68,920 1,791,920
77 - 5,617,940

Selling & distribution cost

Years 2013 2014 2015

Description QTY/MT Rate Amount QTY/ Rate Amount QTY/ Rate Amount
MT MT
Humera 1,140 4,500 5,130,000 1,710 4,725 8,079,750 2,565 4,961.25 12,725,606.25
Sesame
seed
Welega 570 4,500 2,565,000 855 4,725 4,039,875 1,282 4,961.25 6,360,322.50
Sesame
seed

Total 1,710 7,695,000 2,565 12,129,625 3,847 19,085,928.75

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 Administrative and general cost

Account Description 2014 2015 2016

1 Telephone 41,000.00 53,550.00 72,600.00
2 Bank service charge 70,000.00 84,351.43 98,786.00
3 Postage 5,150.00 7,449.80 10,594.78
4 Maintenance 21,740.00 25,430.00 30,370.00
5 Stationary 6,830.00 8,560.00 19,616.00
6 Audite service fee 11,000.00 12,100.00 13,310.00
7 Depreciation – furniture 23,287.50 28,987.50 33,487.50
8 Depreciation – computer 15,770.86 34,031.86 48,031.86
9 Depreciation - motor vehicles - 480,000.00 1,080,000.00
10 Depreciation –Cleaning Machine - -2081794 375,000.00
11 Depreciation - Warehouse - - 300,000.00
12 Fuel 35,000.00 56,960.00 80,256.00
13 License renewal 535.00 588.50 647.35
14 Annual service cash re 1,353.20 1,488.52 1,637.37
15 Membership fee 20,000.00 21,000.00 22,050.00
16 Office rent 120,000.00 126,000.00 144,000.00
17 Other expenses 40,000.00 42,000.00 56,279.00
18 Commission 107,400.00 112,770.00 164,000.00
19 Inspection fee 37,950.00 39,845.00 47,780.00
20 Reject expence 2,053,000.00 3,384,700.00 5,617,940.00
Total 3,210,016.56 4,519,811.81 8,216,385.86

Fixed Asset purchase schedule

Years 2014 2015 2016

Ser. Description Unit Qty. Unit cost Total cost Qty. Unit cost Total cost Qty. Unit cost Total cost
no measure

1 Motor vehicle Pcs - - - 1 3,200,000 3,200,000 1 4,000,000 4,000,000

2 Furniture
Table Pcs 2 5,000 10,000 2 6,000 12,000 2 7,000 14,000
Chairs Pcs 6 3,000 18,000 4 4,000 16,000 2 5,000 10,000

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 Shelves Pcs 1 4,000 4,000 2 5,000 10,000 1 6,000 6,000
3 Computer
&accesaries

Computers Pcs 1 21,000 21,000 2 25,000 50,000 2 28,000 56,000

Printers Pcs 1 6,000 6,000 1 9,000 9,000 2 12,000 24,000
Photocopy Pcs 1 25,000 25,000 1 28,000 28,000 - - -
machine
4 Cleaning Pcs - - - - - - 1 2,500,000 2,500,000
machine
5 Wearehouse 1 6,000,0 00 6,000,000

Total 84,000 3,336,000 12,610,000

Depreciation schedule 2014

Ser. Description Beg. Add Total Acc.Depr.b Deperci Rate Dep. Acc. Book
no. balance ition cost eg. able Exp. Depr. value
cost
- - - - - - - - -
1 Motor Vehicles
123,250.09 32,000 155,250.09 - 155,250.09 15% 23,287.5 23,287.5 131,962.59
2 OfficeFurniture
21,159.30 52,000 73,159.30 1,139 73,159.30 20% 14,631.86 15,770.86 57,388.44
3 Computer
&accesaries
- - - - - - - - -
4 Cleaning machine
- - - - - - - - -
5 Warehouse under
construction
TOTAL 144,409,39 84,000 228,409.39 1,139 228,409.39 37,919.36 39,058.36 189,351.03

Depreciation schedule 2015

Ser. Description Beg. Additio Total cost Acc.Depr.b Deperciable Rate Dep. Acc. Book value
no. balance n eg. cost Exp. Depr.
- 3,200,000 3,200,000 - 3,200,000 15% 480,000 480,000 2,720,000
1 Motor Vehicles
155,250.09 38,000 193,250.09 23,287.5 193,250.09 15% 28,987.5 52,275 140,975.09
2 OfficeFurniture
73,159.30 87,000 160,159.30 15,770.86 160,159.30 20% 34,031.86 49,802.72 110,356.58
3 Computer
&accesaries
- - - - - - - - -
4 Cleaning
machine
- - - - - - - - -
5 Warehouse
TOTAL 228,409.39 3,325,000 3,553,409.39 39,058.36 3,553,409.39 541,019.36 580,077.7 2,973,331.67

Depreciation schedule 2016

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Ser Description Beg. Addition Total cost Acc.Depr.b Deperciabl Rate Dep. Acc. Book value
.no balance eg. e cost Exp. Depr.
1 Motor 3,200,000 4,000,000 7,200,000 480,000 7,200,000 15% 1,080,000 1,560,000 5,640,000
Vehicles
2 OfficeFurnitu 193,250.09 30,000 223,250.09 52,275 223,250.09 15% 33,487.5 85,762.5 137,487.59
re
3 Computer 160,159.30 80,000 240,159.3 49,802.72 240,159.3 20% 48,031.86 97,834.16 142,325.14
&accesaries
4 Cleaning - 2,500,000 2,500,000 - 2,500,000 15% 375,000 375,000 2,125,000
machine
5 Warehouse - 6,000,000 6,000,000 - 6,000,000 5% 300,000 300,000 5,700,000

TOTAL 3,553,409.39 12,610,000 16,163,409.39 580,077.7 16,163,409.39 1,838,519.3 2,416,597.06 13,744,812.73

6

Abeje Yenesew Zeleke

Projected balance sheet

For the projected year as of June 30,2013,2014,2015

Asset 2014 2015 2016

Current Assets
Inventories 4,986,500 15,676,156.18 34,849,961.5
Owners account
Trade & sundry receivables 870,450 6,071,379.49 10,001,000
Prepayments & others 2,604,513 4,000,000 23,640,321
Withholding receivables
Cash on hand & at bank 23,745,022.6 48,904,433.70
88,552,870.77

Non Current Assets

Property,plant& equipment 1,423,875 2,229,950 8,694,925

Total Asset 33,630,360.6 76,881,919.37 165,739,078.27

Equity & Liability

Current Liabilities
Sundry creditors 670,000 428,934 582,670
Pre shipment loan 25,000,000 40,000,000 60,000,000
Bank Term loan
Provision for Taxation 2,790,595 5,042,209 8,519,353.60
Accruals 241,920 342,581 512,694
Payroll & related taxs 8,564 59,780 67,930
Other Payable 2,206,924.21
22,333,446.98 46,157,408.23 94,363,522.89
Total Liabilities
Equity
Paid up capital 400,000 15,000,000 30,000,000
Retained earnings 3,296,913.62 15,724,511.14 41,375,555.38
11,296,913.62 30,724,511.14 71,375,555.38
TOTAL LIABILITY & 133,630,360.6 76,881,919.37 165,739,078.2
CAPITAL 7

11
 Abeje Yenesew Zeleke
Projected Profit or loss statement

For the projected year ended June 30,2014,2015,2016

2014 2015 2016

Revenue
EXPORT SALES 127,680,000 210,672,000 347,565,240
TOTAL REVENUE 127,680,000 210,672,000 347,565,240
COST OF SALE
EXPORT 105,223,000 173,615,200 286,465,080
TOTAL COST OF SALE 105,223,000 173,615,200 286,465,080
OTHER INCOME
GROSS PROFIT 22,457,000 37,056,800 61,100,160
EXPENSE
SELLING & DISTRIBUTION 7,695,000 12,129,625 19,085,928.75
GENERAL & 3,210,016 4,519,811.8 8,216,385.86
ADMINISTRATION EXP. .56 1
FINANCIAL CHARGES 2,250,000 3,600,000 5,400,000
TOTAL EXPENSE 13,155,016.56 20,249,436.81 32,702,314.61
PROFIT BEFOR TAX 9,301,983.44 16,807,363.19 28,397,845.39
PROVISION FOR PROFIT TAX (2,790,595) (5,042,209) (8,519,353.6)
RETAINED EARNING
BEGINNING
RETAINED EARNING ENDING

Abeje Yenesew Zeleke

Projected cash flow statment
For the projected year ended June 30,2014,2015,2016

Years 2014 2015 2016

Description
Beginning cash balance 8,000,000 12,498,036.58 28,915,747.33
collection from export sales 127,680,000 210,672,000 347,565,240
Cash received from 25,000,000 40,000,000 60,000,000
preshipment loan
Cash received from Term loan - - -

12
Total Cash Available 63,583,240 237,312,796.58 484,415,783.33
Application of cash
Cash used for purchase of (105,223,000) (173,615,200) (286,465,080)
export items
Cash used for purchase of Fixed (84,000) (3,336,000) (12,610,000)
Asset
sub total (105,307,000) (176,951,200) (299,075,080)
Cash used for operational
expenses
Distribution expense (7,695,000) (12,129,625) (19,085,928.75)

Admin Expense (3,210,016.56) (4,519,811.81) (8,216,385.86)

sub total (10,905,016.56) (16,649,436.81) (27,302,314.61)

Cash used for settlement of
bank loan
Settlement of Preshipment loan (25,000,000) (40,000,000) (60,000,000)
Settlement of term loan IN 3
YEARS
Settlement of Bank loan
interest (2,250,000) (3,600,000) (5,400,000)
sub total (27,250,000) (43,600,000) (65,400,000)
Total Application of cash (143,462,016.56) (237,200,636.81) (391,777,394.61)
Ending cash Balance 12,498,036.58 28,915,747.33 57,962,096.25

13