Professional Documents
Culture Documents
Business Concept
Financial Features
Posho, a fine flour made from ground corn, is an important part of the East
African diet, and somost rural farmers grow a considerable amount of maize
to process into posho. This results in ahigh demand for corn grinders.
However, because of the high costs associated with purchasinga grinder, the
number of grinders is limited, especially in most of the rural and peri-urban
areas of Uganda. Within these areas, most of the corn grinders are separated
by distances ranging between 6 to 10 kms that renders them barely
adequate to service the corn-grinding needs of most of the local residents
who depend on posho for a large part of their staple diet. This creates a
perfect opportunity for a grindingbusiness if enough corn is grown and
processed within these areas to turn a profit. After an analysis of the
Kawempe-Tula peri-urban area, including those that would grind their corn in
the area, it was decided that there was enough demand for posho and corn
grinding services in the area to turn a profit if a corn grinder were built.
1.4
Management
Partnerships
Financial Plan
The corn grinding project would require a loan of UGX 30 million. This
business is projected tohave a Return on Investment (ROI) of 17.48% the first
year and 23.32% in the second year. Similarrates continue into the future.
Projections show that the business should be turning greatprofits after one
year and loan repayments are projected to be met without much strain on
thebusiness or owner.
1.7
Loan Information
Economic Impact
2
2.0
PROJECT PROFILE
The proposed project is for setting up a Maize Flour Mill. The Mill will be
established the Kawempe-Tula peri-urban area of Kawempe Division of
Kampala city. The document highlights marketing, management, business
operations and financial aspects required for the establishment of successful
maize milling business venture. The unit will be using modern automated
machinery for all the processes, ensuring quality check throughout the
production process. After processing, the flour will be packed in standard 50
kg-sized packages. The unit will produce premium quality flour to be sold in
the local market, competing with existing brands.
2.1
Project Brief
As such there is no specific time required for the entry time in this sector. As
the need for maize flour is increasing day by day due to the increase in
population, investment can be made any time during the year.
2.3
Opportunity Rationale
Agriculture sector contributes 23.1% of the total GDP for Uganda (2013).
However, the rapid rate of population growth in Uganda coupled with
climate-change-induced weather changes, have greatly burdened the
agriculture sector as its productivity is not able to meet the current food
requirements. Lack of infrastructure and a fast-growing population have also
increased demand of food items, which havea direct impact on public &
private sector Flour Mills. Uganda is a medium-density populated country,
which creates a great demand for Maize Flour, whereby big investment
3
Working Time
Project Investment
The Total Initial Cost of the Project is worked out in Table 1 as follows:
Table 1: Project Cost Summary in UGX
S.
Project
Investment Share
No. Component
1.
2.
3.
4.
5.
Existing
Milling
Plant
Structure
Plant
Machinery
and
Equipment
Prelim. & Pre-op. Expenses
Working Capital
TOTAL PROJECT FUNDING
14.29%
51.43%
5.71%
28.57%
100.00
%
4
Project
Promoter
(Equity)
Shortterm
Debt/Loa
n
Financing
Total
10,000,00
10,000,00
0
0
0
16,000,00
20,000,00
36,000,00
0
0
0
4,000,000
0
4,000,000
10,000,00
10,000,00
20,000,00
0
0
0
40,000,00 30,000,00 70,000,00
0
0
0
100.00%
Project Location
2.9
The commercial viability of the proposed Maize Flour Mill depends on the
following Factors:
Utmost care should be taken while selecting maize. Only the best
quality maize should be used.
Waste Production should be kept at minimum and production process
need to be monitored very carefully.
Advance sale orders can ensure the success of the business.
It is recommended to estimate the maize requirements for the year
and this should be contracted for in advance with the suppliers to
secure the drastic fluctuations in the prices of maize.
Quality maintenance will play an important role as it is evident from
the behavior of the general consumers that they are more specific
towards health issues than ever before.
Cost Accounting system should be strengthened so as to monitor the
entire process and determine the reasons for major variances in the
process such as Material, Labor and Factory Overhead Variances.
Location of the project is of prime importance.
Selection of technical / skilled staff would be very crucial decision to be
made by the management.
Continuous efforts should be made for up-gradation of the technology.
2.10 SWOT Analysis
5
Expected
loss at the initial stages of
labour involved.
Availability of low cost labour.
the operation as a result of sales
Product affordable to all income
return from the distributors.
Inexperienced technical staff as
groups.
Wide range of target market.
compared to the units currently in
operation.
Opportunities
Threats
Changes in the current eating habits Already established businesses in
of the people.
same industry.
A large number of people that are not Fluctuation in the price of maize.
brand loyal can be targeted through Quality of the flour is to be monitored
very closely as people are more
marketing campaign.
About 40% of the Maize Flour Market
directed towards health and safety
share comprises of un-branded flour
issues.
competition
and
high
this share can be gained through Strong
promotional
activity
by
the
heavy marketing campaign.
Export opportunity.
competitors.
3.0
BUSINESS PROFILE
3.1
The Business
3.1.1 Goals and Objectives
Mission Statement Uganda Grain Dealers Ltd. will produce maize flour
(posho) in the Kawempe-Tula area of northern Kampalas suburbs in order to
reduce the retail price of maize flour in this northern suburb of Kampala
district.
Vision Statement- Uganda Grain Dealers Ltd. will strive to stimulate and
support long term economic growth and increased cash flow in the northerly
Kawempe area of Kampala District.
0-3 month goals This is the start-up period where the milling
infrastructure will be built. This includes building of facilities, ordering and
installation of a maize mill, installation of electricity hookups, procuring
maize sources, and the training of staff on operations and maintenance. Full
operation will start during the 2015 first harvesting season.
2 year goals With positive cash flow Uganda Grain Dealers Ltd. will turn
its focus on growth through community involvement. Uganda Grain
Dealers Ltd. will work with non-farming local property owners to encourage
commerce and thus gaining additional maize sources.
7
Shares
held
(UGShs)
2,250,000
500,000
500,000
The Industry
3.2.1 Competition
There are two categories of maize mills in Uganda: small scale mills that only
serve their immediate communities and large scale mills that sell their
product throughout Uganda.
The large scale milling companies are able to spend significantly on
marketing and enjoy customer brand recognition. They are located in areas
of established infrastructure and have strong relationships with maize
producers, grain traders and outlets.
Large scale milling companies do however struggle to serve remote locations
due to transportation costs. They also process such high volumes that quality
is often neglected. Smaller outlets are typically ignored and customer
support is virtually non-existent.
10
The demand for commercial meal once again drops in May every year when
people again start harvesting their own crops. During the peak months of
December through May most milling companies look at producing twice as
much maize meal per month as they would during the rest of the year.
Annual Fluctuations - The milling industry in Uganda has enjoyed a very
stable environment over the last few years. The main reasons for this
stability are:
Uganda has one of the most stable and favourable natural climates in
Eastern Africa for growing maize. Droughts and occasional floods along
some parts of Uganda do however occur which can impact national
maize production negatively. On average however, Uganda has been
producing more and more maize every year for the last eight years.
4.0
MARKET STUDY
Maize was introduced in Uganda in 1861 and has since become a major part
of the farming system, ranking third in importance among the main cereal
crops (finger millet, sorghum and maize) grown in the country (USAID, 2010).
Much of the production of maize aims to supply export markets in the region,
mostly especially Kenya and recently Southern Sudan, which are in chronic
maize deficits. The maize sub-sector is estimated to provide a livelihood for
about 3 million Ugandan farm households, close to 1,000 traders and over 20
exporters (UBoS, 2011). Therefore, maize is a growing source of household
income and foreign exchange through exports. Providing more support to the
maize industry is therefore a key part of Ugandas strategy to strengthen its
positioning in regional and world markets.
4.1
Production
13
14
15
3000
2500
2000
1500
1000
500
0
Consumption
While maize has been grown for a long time in Uganda, nonetheless, unlike
in neighboring countries (Kenya, Tanzania, etc.), it does not form a major part
of the populations traditional diet, but is grown primarily for income
generation, rather than for food security. However, the growing cost of
traditional staple foods (such as cooking bananas locally called Matooke) has
had the impact of increasing maize consumption, especially in urban areas.
Kampala alone accounts for about 50percent of formal trade in maize
(USAID, 2010).
16
export of
2007
1,261.8
0
42.54
107.08
8.48%
Uganda
2008
2,314.9
1
N/A
66.67
(2004-2010)
2009
2010
2,354.6 2,373.5
6
0
N/A
N/A
94.44
166.25
2.88%
4.01%
7.00%
Data obtained from FAOSTAT (2012) indicates that formal imports of maize
have been declining since 2004. The same conclusion is also reported by
USAID (2010). Imports of maize have been high in seasons of low harvest
(e.g., 2004) especially on account of variations in rainfall patterns. By and
large, however, Uganda has always been self-sufficient in maize production
and has not been dependent on imports.
4.4
21
export price
350
300
250
200
price
150
100
50
0
2005
2006
2007
2008
2009
2010
2011
Source: Whole sale price data from www.ratin.net. Export prices calculated from
data from MAAIF (2011).
22
23
and
Commercial
Farmers
Subsistence
Farmers
Organized Farmer
Groups
Rural Traders/Agents
Urban Traders
Busia/Suam Cross
Border Markets
Uganda Grain
Traders
Relief
Agencies/WFP
Formal Trade
Regional Exports
Millers
Wholesalers
Market
Vendors
Animal Feed
Blenders
Supermarkets
Retailers
Final
Consumers
24
Feed
Agents
25
26
5.0
MARKETING PLAN
5.1
Uganda Grain Dealers Ltd. Mill will be filling a need within the Kawempe
Division of Kampala district that has a high inherent and unmet consumptive
demand for maize flour and other milled maize grain products. Uganda
Grain Dealers Ltd. will provide a lower priced product as it will be locally
produced. Uganda Grain Dealers Ltd. will also ensure a high quality
product with consistent availability.
5.2
Price Point
Posho Grade 1 currently retails at UgSh 1,400 per kg in Kampala. This price is
on average between UgSh 100 to 200 more than retail prices in other
upcountry towns of Uganda due to the added transportation costs. As a local
Kawempe-based mill Uganda Grain Dealers Ltd. will provide posho to this
market without the transportation surcharges allowing for a retail price of
UgSh 1,200 per kg. Uganda Grain Dealers Ltd. will also offer a wholesale
price of UgSh116,000 per 50 kg bag allowing for a price discount of about
UgSh 50 per kg on the retail price. At this price point with a quality product
market acceptance is assured.
5.3
Sales Channels
Sales are divided roughly 50% / 50% between wholesale and retail. All retail
sales and wholesale sales will be mostly cash sales except for a few large
accounts with outlets who will receive net 30 days payment terms.
5.4
Marketing
Uganda Grain Dealers Ltd. will use both mass media advertising
(especially the print and electronic media) to promote its product and also
through direct sales calls to businesses and retails outlets. Maize flour is fast
becoming an increasingly important food item of consumption and product of
importance and word of mouth advertising will account for a large portion of
the general publics product awareness. By providing a quality product at a
cheaper price, Uganda Grain Dealers Ltd.is virtually removing all barriers
to product acceptance.
27
6.0
Technology
Production Process
A great advantage of machine milling over pounding is that the relatively
hard and tough peels and embryos are thoroughly broken up and
incorporated in the meal, together with the starch. The starch provides
calories for energy but the peels and embryos supply oil and protein, giving
almost balanced human food, after cooking. This whole meal does not keep
well due to the oil in the embryos going rancid, so a farmer has to go fairly
frequently to the mill with his maize.
Machine mills can separate out the peels and embryos which are valuable
concentrates for stock-feeding (bran); the fairly pure starch then keeps for
longer periods but it has little nutritional value. In view of the deteriorating
relation of food production to population in Africa, it is desirable that maize
mills should produce whole meal. Milled maize is becoming popular and is
being produced in increasing quantities. It can replace the white maize meal
preferred by the higher income groups.
The commonest forms of power mills are hammer mills and plate mills. They
are single-stage; a stator with an internal power-driven rotor which pulverizes
the grains of maize, the meal escaping through a fine steel or brass screen.
The loss, as flour dust, is low, under 1 per cent, a notable improvement on
hand pounding.
Roller mills are manufactured mainly for the production of fine corn-flour. The
peels and embryos are discarded and used for stock feed.
Grinding maize is a two step process that requires two different machines.
The first machine, called a decorticator (huller), is to remove the shell of the
corn. The second machine is the grinder that grinds the previously shelled
maize into fine flour for making posho. Both of these machines require a
mechanical drive, the most popular being an electric motor. It is therefore
necessary that each one the two pieces (i.e. the huller and the grinder) have
28
Engineering
6.3
Quality Control
In order to ensure proper quality, Uganda Grain Dealers Ltd. will take
proper precautions including: making sure not to grind un-dried corn flour;
sifting all corn to remove all rubbish before processing; cleaning the
premises every day; and ensuring that workers are clean, wash hands
regularly, and wear aprons; and packing flour in clean material. The manager
will supervise and inspect quality daily and address any issues that arise.
29
7.0
Maize milling is the process where dried maize kernels are refined to posho.
The maize milling process is a mechanical process and consists of cleaning,
grinding and sieving operations. After each sieving operations, product of a
particular quality is drawn and the residue is recycled for further grinding or
milling.
Equipment / Facilities: The production of maize meal requires a maize mill.
The mill is constructed of various parts each responsible for performing
functions such as sorting, cleaning, conveying, conditioning, grinding,
crushing, purifying, and bagging. The mill will be housed in a building that
contains all of its operations. Roughly 150m 2 is required for the milling
equipment with another 50m2 for surrounding working space. A building with
an additional 50m2 is required as temporary storage for the daily finished
maize meal product prior to being delivered.
Raw Materials: The principal raw material required by the envisaged plant
is maize. In view of high nutritional value, it is desirable that maize mills
should produce whole meal flour. Water is also required for use in the wetmilling process. Maize is purchased a various quantities bagged in 50kg
bags. Uganda Grain Dealers Ltd. will give all local farmers first priority
before purchasing from commercial growers. Water will be pumped in
Kampala water supply system. The pre-processed maize will be stored in a
building at the site with adequate floor dimensions and capable of containing
up to 150 tons of maize. A water tank is also required to maintain 200L of
water per day for the mills operations.
The major auxiliary materials required by the plant are 50 kg polypropylene
bags and sewing thread which are locally available. The detailed list and cost
of raw material and auxiliary materials is depicted in the Table 7 below. The
total monthly cost of raw material and auxiliary materials is estimated at
UGX 18.76 million.
Table 7: Monthly Raw and Auxiliary Materials and their Costs
30
Operational Plan
7.2.1 Current Status
32
33
8.0
35
9.0
FINANCIAL ANALYSIS
9.1
Overview
Production Cost
Financial Evaluation
9.3.1 Profitability
37
Break-even Sales =
Total Cost
236,376,000
51,408,000
12,600,000
1,260,000
1,890,000
32,760,000
630,000
1,260,000
2,520,000
1,260,000
4,500,000
1,708,000
348,172,00
0
= UGX396,144,000
35,702,500
1 312,469,500
396,144,000
UGX 169,027,973
38
35,702,500 35,702,500
1 0.79
0.21
Balance
Sheet,
and
Economic Benefits
The project can create employment for 9 persons. In addition to supply of the
domestic needs, the project will generate a total UgSh 20.528 million in
terms of aggregate tax for Year 1 and Year 2.
10.0 LOAN INFORMATION
10.1 Financial Needs
As noted in the capital requirements section the immediate total capital
required for the project amounts to UGX 54 million. Included in this is the
equipment necessary for milling maize (grinder, huller, and engine), the
building construction that will house the machinery, and other necessary
start-up costs.
Uganda Grain Dealers Ltd. has already acquired and installed the basic
maize mill equipment at its Kawempe-Tula site like: the huller, grinder, intake
hopper and collecting hopper and weigher, but needs an additional loan of
UgSh 20 million to finance the purchase and installation of addition mill
equipment including 2 mill motors to run both the grinder and the huller,
plus the screen and spiral separators, grader, a hydrator that is used in the
wet-milling process, grain polisher and a screw conveyor. All the listed
require mill equipment will be sourced from reputable maize mill equipment
suppliers in Kampala like Agro Sokoni, Magric (U) Ltd., etc. that not only offer
a one year warranty but can also guarantee supply of standard-priced spare
parts and after-sales servicing.
Additional costs for the equipment include transportation from the mill
equipment sellers sales outlets in Kampala and installation costs. The cost of
39
42
10
11
12
TOTAL
18,760,0
00
4,080,00
0
1,000,00
0
18,760,0
00
4,080,00
0
1,000,00
0
18,760,0
00
4,080,00
0
1,000,00
0
18,760,0
00
4,080,00
0
1,000,00
0
18,760,0
00
4,080,00
0
1,000,00
0
18,760,0
00
4,080,00
0
1,000,00
0
18,760,0
00
4,080,00
0
1,000,00
0
18,760,0
00
4,080,00
0
1,000,00
0
18,760,0
00
4,080,00
0
1,000,00
0
18,760,0
00
4,080,00
0
1,000,00
0
18,760,0
00
4,080,00
0
1,000,00
0
18,760,0
00
4,080,00
0
1,000,00
0
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
225,120,
000
48,960,0
00
12,000,0
00
1,200,00
0
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
150,000
2,600,00
0
150,000
2,600,00
0
150,000
2,600,00
0
150,000
2,600,00
0
150,000
2,600,00
0
150,000
2,600,00
0
150,000
2,600,00
0
150,000
2,600,00
0
150,000
2,600,00
0
150,000
2,600,00
0
150,000
2,600,00
0
150,000
2,600,00
0
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
Consumable Stores
100,000
27,140,
000
100,000
27,140,
000
100,000
27,140,
000
100,000
27,140,
000
100,000
27,140,
000
100,000
27,140,
000
100,000
27,140,
000
100,000
27,140,
000
100,000
27,140,
000
100,000
27,140,
000
100,000
27,140,
000
100,000
27,140,
000
525,000
525,000
525,000
525,000
525,000
525,000
525,000
481,000
438,000
394,000
350,000
306,000
375,000
900,00
0
375,000
900,00
0
375,000
900,00
0
375,000
900,00
0
375,000
900,00
0
375,000
900,00
0
375,000
900,00
0
375,000
856,00
0
375,000
813,00
0
375,000
769,00
0
375,000
725,00
0
375,000
681,00
0
5,644,00
0
4,500,00
0
10,144,0
00
Total Production
Costs
28,040,
000
28,040,
000
28,040,
000
28,040,
000
28,040,
000
28,040,
000
28,040,
000
27,996,
000
27,953,
000
27,909,
000
27,865,
000
27,821,
000
335,824,
000
MONTH
Operating Costs
(UGX)
Raw materials
Salaries & wages
Utilities
Repairs & Maintenance
Postage & Stationery
Telephone Charges
Advertisement &
Publicity
Transport Charges
Cost of Sales
600,000
1,200,00
0
1,800,00
0
31,200,0
00
2,400,00
0
1,200,00
0
325,680,
000
Depreciation
43
Annexure 1.2: Monthly Production Cost Estimates for Year 2 (In UGX)
ACCOUNT HEAD
13
14
15
16
17
18
19
20
21
22
23
24
TOTAL
19,698,0
00
4,284,00
0
1,050,00
0
19,698,0
00
4,284,00
0
1,050,00
0
19,698,0
00
4,284,00
0
1,050,00
0
19,698,0
00
4,284,00
0
1,050,00
0
19,698,0
00
4,284,00
0
1,050,00
0
19,698,0
00
4,284,00
0
1,050,00
0
19,698,0
00
4,284,00
0
1,050,00
0
19,698,0
00
4,284,00
0
1,050,00
0
19,698,0
00
4,284,00
0
1,050,00
0
19,698,0
00
4,284,00
0
1,050,00
0
19,698,0
00
4,284,00
0
1,050,00
0
19,698,0
00
4,284,00
0
1,050,00
0
105,000
105,000
105,000
105,000
105,000
105,000
105,000
105,000
105,000
105,000
105,000
105,000
236,376,
000
51,408,0
00
12,600,0
00
1,260,00
0
52,500
52,500
52,500
52,500
52,500
52,500
52,500
52,500
52,500
52,500
52,500
52,500
105,000
105,000
105,000
105,000
105,000
105,000
105,000
105,000
105,000
105,000
105,000
105,000
157,500
2,730,00
0
157,500
2,730,00
0
157,500
2,730,00
0
157,500
2,730,00
0
157,500
2,730,00
0
157,500
2,730,00
0
157,500
2,730,00
0
157,500
2,730,00
0
157,500
2,730,00
0
157,500
2,730,00
0
157,500
2,730,00
0
157,500
2,730,00
0
210,000
210,000
210,000
210,000
210,000
210,000
210,000
210,000
210,000
210,000
210,000
210,000
Consumable Stores
105,000
28,497,
000
105,000
28,497,
000
105,000
28,497,
000
105,000
28,497,
000
105,000
28,497,
000
105,000
28,497,
000
105,000
28,497,
000
105,000
28,497,
000
105,000
28,497,
000
105,000
28,497,
000
105,000
28,497,
000
105,000
28,497,
000
263,000
241,000
219,000
197,000
175,000
153,000
131,000
109,000
88,000
66,000
44,000
22,000
375,000
638,00
0
375,000
616,00
0
375,000
594,00
0
375,000
572,00
0
375,000
550,00
0
375,000
528,00
0
375,000
506,00
0
375,000
484,00
0
375,000
463,00
0
375,000
441,00
0
375,000
419,00
0
375,000
397,00
0
MONTH
Operating Costs
(UGX)
Raw materials
Salaries & wages
Utilities
Repairs & Maintenance
Postage & Stationery
Telephone Charges
Advertisement &
Publicity
Transport Charges
Cost of Sales
630,000
1,260,00
0
1,890,00
0
32,760,0
00
2,520,00
0
1,260,00
0
341,964,
000
Depreciation
Total Financial Costs
44
1,708,00
0
4,500,00
0
6,208,00
0
29,135,
000
29,113,
000
29,091,
000
29,069,
000
29,047,
000
29,025,
000
29,003,
000
28,981,
000
28,960,
000
28,938,
000
28,916,
000
28,894,
000
348,172,
000
Annexure 2.1: Projected Cash flow Table for Year 1 (In UGX)
Period
Month
10
11
12
54,000,000
31,440,000
31,440,000
31,440,000
31,440,000
31,440,000
31,440,000
31,440,000
31,440,000
31,440,000
31,440,000
31,440,000
31,440,000
31,440,000
31,440,000
31,440,000
31,440,000
31,440,000
31,440,000
31,440,000
31,440,000
31,440,000
31,440,000
31,440,000
31,440,000
-54,000,000
-37,368,097
-37,368,097
-37,368,097
-37,368,097
-37,368,097
-37,368,097
-39,868,097
-39,824,097
-39,781,098
-39,737,098
-39,693,098
-48,935,898
-54,000,000
-9,569,764
-9,569,764
-9,569,764
-9,569,764
-9,569,764
-9,569,764
-9,569,764
-9,569,764
-9,569,764
-9,569,764
-9,569,764
-9,569,764
-27,140,000
-27,140,000
-27,140,000
-27,140,000
-27,140,000
-27,140,000
-27,140,000
-27,140,000
-27,140,000
-27,140,000
-27,140,000
-27,140,000
a) Interest
-525,000
-525,000
-525,000
-525,000
-525,000
-525,000
-525,000
-481,000
-438,000
-394,000
-350,000
-306,000
b) Repayments
-2,500,000
-2,500,000
-2,500,000
-2,500,000
-2,500,000
-2,500,000
4. Corporate tax
-9,286,800
5. Dividends 4% on equity
-133,333
-133,333
-133,333
-133,333
-133,333
-133,333
-133,333
-133,333
-133,334
-133,334
-133,334
-133,334
B. Cash outflow
54,000,000
45
-5,928,097
-5,928,097
-5,928,097
-5,928,097
-5,928,097
-5,928,097
-8,428,097
-8,384,097
-8,341,098
-8,297,098
-8,253,098
-17,495,898
D. Cumulative cash
balance
-5,928,097
-11,856,194
-17,784,291
-23,712,388
-29,640,484
-35,568,581
-43,996,678
-52,380,775
-60,721,873
-69,018,971
-77,272,069
-94,767,967
Annexure 2.2: Projected Cash flow Table for Year 2 (In UGX)
Period
Month
13
14
15
16
17
18
19
20
21
22
23
24
Total
33,012,000
33,012,000
33,012,000
33,012,000
33,012,000
33,012,000
33,012,000
33,012,000
33,012,000
33,012,000
33,012,000
33,012,000
396,144,000
33,012,000
33,012,000
33,012,000
33,012,000
33,012,000
33,012,000
33,012,000
33,012,000
33,012,000
33,012,000
33,012,000
33,012,000
396,144,000
B. Cash outflow
-30,607,168
-30,585,168
-30,563,168
-30,541,168
-30,519,168
-30,497,168
-30,475,168
-30,453,168
-30,432,169
-30,410,169
-30,388,169
-41,607,769
-377,079,617
-463,835
-463,835
-463,835
-463,835
-463,835
-463,835
-463,835
-463,835
-463,835
-463,835
-463,835
-463,835
-5,566,017
-28,497,000
-28,497,000
-28,497,000
-28,497,000
-28,497,000
-28,497,000
-28,497,000
-28,497,000
-28,497,000
-28,497,000
-28,497,000
-28,497,000
-341,964,000
-263,000
-241,000
-219,000
-197,000
-175,000
-153,000
-131,000
-109,000
-88,000
-66,000
-44,000
-22,000
-1,708,000
-1,250,000
-1,250,000
-1,250,000
-1,250,000
-1,250,000
-1,250,000
-1,250,000
-1,250,000
-1,250,000
-1,250,000
-1,250,000
-1,250,000
-15,000,000
-11,241,600
-11,241,600
-133,333
-133,333
-133,333
-133,333
-133,333
-133,333
-133,333
-133,333
-133,334
-133,334
-133,334
-133,334
-1,600,000
4. Corporate tax
5. Dividends 4% on equity
46
2,404,832
2,426,832
2,448,832
2,470,832
2,492,832
2,514,832
2,536,832
2,558,832
2,579,831
2,601,831
2,623,831
-8,595,769
D. Cumulative cash
balance
2,404,832
4,831,665
7,280,497
9,751,329
12,244,161
14,758,994
17,295,826
19,854,658
22,434,490
25,036,321
27,660,152
19,064,383
19,064,383
10
11
12
Total
Raw Materials
31,440,0
00
18,760,0
00
31,440,0
00
18,760,0
00
31,440,0
00
18,760,0
00
31,440,0
00
18,760,0
00
31,440,0
00
18,760,0
00
31,440,0
00
18,760,0
00
31,440,0
00
18,760,0
00
31,440,0
00
18,760,0
00
31,440,0
00
18,760,0
00
31,440,0
00
18,760,0
00
31,440,0
00
18,760,0
00
31,440,0
00
18,760,0
00
377,280,
000
225,120,
000
GROSS PROFIT
12,680,0
00
12,680,0
00
12,680,0
00
12,680,0
00
12,680,0
00
12,680,0
00
12,680,0
00
12,680,0
00
12,680,0
00
12,680,0
00
12,680,0
00
12,680,0
00
152,160,
000
8,380,00
0
8,380,00
0
8,380,00
0
8,380,00
0
8,380,00
0
8,380,00
0
8,380,00
0
8,380,00
0
8,380,00
0
8,380,00
0
8,380,00
0
8,380,00
0
100,560,
000
OPERATING PROFIT
4,300,00
0
4,300,00
0
4,300,00
0
4,300,00
0
4,300,00
0
4,300,00
0
4,300,00
0
4,300,00
0
4,300,00
0
4,300,00
0
4,300,00
0
4,300,00
0
51,600,0
00
525,000
525,000
525,000
525,000
525,000
525,000
525,000
481,000
438,000
394,000
350,000
306,000
5,644,00
0
2,500,00
0
2,500,00
0
2,500,00
0
2,500,00
0
2,500,00
0
2,500,00
0
15,000,0
00
3,775,00
0
3,775,00
0
3,775,00
0
3,775,00
0
3,775,00
0
3,775,00
0
1,275,00
0
1,319,00
0
1,362,00
0
1,406,00
0
1,450,00
0
1,494,00
0
30,956,0
00
Month
Sales
Less: Annual
Repayments
NET PROFIT BEFORE TAX
47
9,286,80
0
9,286,80
0
NET PROFIT
3,775,00
0
3,775,00
0
3,775,00
0
3,775,00
0
3,775,00
0
3,775,00
0
1,275,00
0
1,319,00
0
1,362,00
0
1,406,00
0
1,450,00
0
7,792,80
0
21,669,2
00
3,775,00
0
7,550,00
0
11,325,0
00
15,100,0
00
18,875,0
00
22,650,0
00
23,925,0
00
25,244,0
00
26,606,0
00
28,012,0
00
29,462,0
00
21,669,2
00
0.120
0.120
0.085
0.085
0.085
0.085
0.041
0.042
0.043
0.045
0.046
-0.248
0.403
0.403
0.403
0.403
0.403
0.403
0.403
0.403
0.403
0.403
0.403
0.403
5.39%
5.39%
5.39%
5.39%
5.39%
5.39%
1.82%
1.88%
1.95%
2.01%
2.07%
-11.13%
0.137
0.137
0.137
0.137
0.137
0.137
0.137
0.137
0.137
0.137
0.137
0.137
Rate of Return on
Investment
10
11
12
Total
Raw Materials
33,012,0
00
19,698,0
00
33,012,0
00
19,698,0
00
33,012,0
00
19,698,0
00
33,012,0
00
19,698,0
00
33,012,0
00
19,698,0
00
33,012,0
00
19,698,0
00
33,012,0
00
19,698,0
00
33,012,0
00
19,698,0
00
33,012,0
00
19,698,0
00
33,012,0
00
19,698,0
00
33,012,0
00
19,698,0
00
33,012,0
00
19,698,0
00
396,144,
000
236,376,
000
GROSS PROFIT
13,314,0
00
13,314,0
00
13,314,0
00
13,314,0
00
13,314,0
00
13,314,0
00
13,314,0
00
13,314,0
00
13,314,0
00
13,314,0
00
13,314,0
00
13,314,0
00
159,768,
000
8,799,00
0
8,799,00
0
8,799,00
0
8,799,00
0
8,799,00
0
8,799,00
0
8,799,00
0
8,799,00
0
8,799,00
0
8,799,00
0
8,799,00
0
8,799,00
0
105,588,
000
OPERATING PROFIT
4,515,00
0
4,515,00
0
4,515,00
0
4,515,00
0
4,515,00
0
4,515,00
0
4,515,00
0
4,515,00
0
4,515,00
0
4,515,00
0
4,515,00
0
4,515,00
0
54,180,0
00
263,000
241,000
219,000
197,000
175,000
153,000
131,000
109,000
88,000
66,000
44,000
22,000
1,708,00
0
1,250,00
0
1,250,00
0
1,250,00
0
1,250,00
0
1,250,00
0
1,250,00
0
1,250,00
0
1,250,00
0
1,250,00
0
1,250,00
0
1,250,00
0
1,250,00
0
15,000,0
00
Month
Sales
Less: Annual
Repayments
48
3,024,00
0
3,046,00
0
3,068,00
0
3,090,00
0
3,112,00
0
3,134,00
0
3,156,00
0
3,177,00
0
3,199,00
0
3,221,00
0
3,243,00
0
37,472,0
00
11,241,6
00
11,241,6
00
NET PROFIT
3,002,00
0
3,024,00
0
3,046,00
0
3,068,00
0
3,090,00
0
3,112,00
0
3,134,00
0
3,156,00
0
3,177,00
0
3,199,00
0
3,221,00
0
7,998,60
0
26,230,4
00
3,002,00
0
6,026,00
0
9,072,00
0
12,140,0
00
15,230,0
00
18,342,0
00
21,476,0
00
24,632,0
00
27,809,0
00
31,008,0
00
34,229,0
00
26,230,4
00
0.091
0.092
0.092
0.093
0.094
0.094
0.095
0.096
0.096
0.097
0.098
-0.242
0.403
0.403
0.403
0.403
0.403
0.403
0.403
0.403
0.403
0.403
0.403
0.403
4.29%
4.32%
4.35%
4.38%
4.41%
4.45%
4.48%
4.51%
4.54%
4.57%
4.60%
-11.43%
0.137
0.137
0.137
0.137
0.137
0.137
0.137
0.137
0.137
0.137
0.137
0.137
Rate of Return on
Investment
MNTH.
0
MNTH.
1
MNTH.
2
MNTH.
3
MNTH.
4
MNTH.
5
MNTH.
6
MNTH.
7
MNTH.
8
MNTH.
9
MNTH.1
0
MNTH.1
1
MNTH.1
2
Share Capital
5,000,000
5,000,000
5,000,000
5,000,000
5,000,000
5,000,000
5,000,000
5,000,000
5,000,000
5,000,000
5,000,000
5,000,000
Retained Earnings
Shareholder's
Equity/Deficit
3,775,000
7,550,000
11,325,000
15,100,000
18,875,000
22,650,000
23,925,000
25,244,000
26,606,000
28,012,000
29,462,000
21,669,200
8,775,000
12,550,000
16,325,000
20,100,000
23,875,000
27,650,000
28,925,000
30,244,000
31,606,000
33,012,000
34,462,000
26,669,200
30,000,000
30,000,000
30,000,000
30,000,000
30,000,000
30,000,000
27,500,000
25,000,000
22,500,000
20,000,000
17,500,000
15,000,000
38,775,000
42,550,000
46,325,000
50,100,000
53,875,000
57,650,000
56,425,000
55,244,000
54,106,000
53,012,000
51,962,000
41,669,200
10,000,000
9,958,333
9,916,667
9,875,000
9,833,333
9,791,667
9,750,000
9,708,333
9,666,667
9,625,000
9,583,333
9,541,667
9,500,000
40,000,000
39,666,667
39,333,333
39,000,000
38,666,667
38,333,333
38,000,000
37,666,667
37,333,333
37,000,000
36,666,667
36,333,333
36,000,000
Testing Equipment
Vehicles
Long-Term Liabilities
EMPLOYMENT OF CAPITAL:
Plant Buildings
Production Plant Equip. &
Machinery
49
50,000,000
49,625,000
49,250,000
48,875,000
48,500,000
48,125,000
47,750,000
47,375,000
47,000,000
46,625,000
46,250,000
45,875,000
45,500,000
CURRENT ASSETS:
-8,645,000
-4,495,000
-345,000
3,805,000
7,955,000
12,105,000
11,255,000
10,405,000
9,599,000
8,836,000
8,117,000
-1,844,800
Accounts Receivable
2,261,667
2,261,667
2,261,667
2,261,667
2,261,667
2,261,667
2,261,667
2,261,667
2,261,667
2,261,667
2,261,667
2,261,667
Stock (Inventory)
6,981,000
6,981,000
6,981,000
6,981,000
6,981,000
6,981,000
6,981,000
6,981,000
6,981,000
6,981,000
6,981,000
6,981,000
327,097
327,097
327,097
327,097
327,097
327,097
327,097
327,097
327,097
327,097
327,097
327,097
-18,214,764
-14,064,764
-9,914,764
-5,764,764
-1,614,764
2,535,236
1,685,236
835,236
29,236
-733,764
-1,452,764
-11,414,564
CURRENT LIABILITIES:
2,205,000
2,205,000
2,205,000
2,205,000
2,205,000
2,205,000
2,205,000
2,161,000
2,118,000
2,074,000
2,030,000
1,986,000
Accounts Payable
1,680,000
1,680,000
1,680,000
1,680,000
1,680,000
1,680,000
1,680,000
1,680,000
1,680,000
1,680,000
1,680,000
1,680,000
525,000
525,000
525,000
525,000
525,000
525,000
525,000
481,000
438,000
394,000
350,000
306,000
-10,850,000
-6,700,000
-2,550,000
1,600,000
5,750,000
9,900,000
9,050,000
8,244,000
7,481,000
6,762,000
6,087,000
-3,830,800
TOTAL CAPITAL
38,775,000
42,550,000
46,325,000
50,100,000
53,875,000
57,650,000
56,425,000
55,244,000
54,106,000
53,012,000
51,962,000
41,669,200
MNTH.1
9
MNTH.2
0
MNTH.2
1
MNTH.2
2
MNTH.2
3
MNTH.1
3
MNTH.1
4
MNTH.1
5
MNTH.1
6
MNTH.1
7
MNTH.1
8
MNTH.2
4
5,000,000
5,000,000
5,000,000
5,000,000
5,000,000
5,000,000
5,000,000
5,000,000
5,000,000
5,000,000
5,000,000
5,000,000
Retained Earnings
Shareholder's
Equity/Deficit
24,671,200
27,695,200
30,741,200
33,809,200
36,899,200
40,011,200
43,145,200
46,301,200
49,478,200
52,677,200
55,898,200
47,899,600
29,671,200
32,695,200
35,741,200
38,809,200
41,899,200
45,011,200
48,145,200
51,301,200
54,478,200
57,677,200
60,898,200
52,899,600
Long-Term Liabilities
13,750,000
12,500,000
11,250,000
10,000,000
8,750,000
7,500,000
6,250,000
5,000,000
3,750,000
2,500,000
1,250,000
43,421,200
45,195,200
46,991,200
48,809,200
50,649,200
52,511,200
54,395,200
56,301,200
58,228,200
60,177,200
62,148,200
52,899,600
9,458,333
9,416,667
9,375,000
9,333,333
9,291,667
9,250,000
9,208,333
9,166,667
9,125,000
9,083,333
9,041,667
9,000,000
35,666,667
35,333,333
35,000,000
34,666,667
34,333,333
34,000,000
33,666,667
33,333,333
33,000,000
32,666,667
32,333,333
32,000,000
Testing Equipment
Vehicles
EMPLOYMENT OF CAPITAL:
Plant Buildings
Production Plant Equip. &
Machinery
50
45,125,000
44,750,000
44,375,000
44,000,000
43,625,000
43,250,000
42,875,000
42,500,000
42,125,000
41,750,000
41,375,000
41,000,000
CURRENT ASSETS:
699,450
2,826,450
4,975,450
7,146,450
9,339,450
11,554,450
13,791,450
16,050,450
18,331,450
20,633,450
22,957,450
14,061,850
Accounts Receivable
2,374,750
2,374,750
2,374,750
2,374,750
2,374,750
2,374,750
2,374,750
2,374,750
2,374,750
2,374,750
2,374,750
2,374,750
Stock (Inventory)
7,330,050
7,330,050
7,330,050
7,330,050
7,330,050
7,330,050
7,330,050
7,330,050
7,330,050
7,330,050
7,330,050
7,330,050
328,799
328,799
328,799
328,799
328,799
328,799
328,799
328,799
328,799
328,799
328,799
328,799
-9,334,149
-7,207,149
-5,058,149
-2,887,149
-694,149
1,520,851
3,757,851
6,016,851
8,297,851
10,599,851
12,923,851
4,028,251
CURRENT LIABILITIES:
2,403,250
2,381,250
2,359,250
2,337,250
2,315,250
2,293,250
2,271,250
2,249,250
2,228,250
2,206,250
2,184,250
2,162,250
Accounts Payable
2,140,250
2,140,250
2,140,250
2,140,250
2,140,250
2,140,250
2,140,250
2,140,250
2,140,250
2,140,250
2,140,250
2,140,250
263,000
241,000
219,000
197,000
175,000
153,000
131,000
109,000
88,000
66,000
44,000
22,000
-1,703,800
445,200
2,616,200
4,809,200
7,024,200
9,261,200
11,520,200
13,801,200
16,103,200
18,427,200
20,773,200
11,899,600
TOTAL CAPITAL
43,421,200
45,195,200
46,991,200
48,809,200
50,649,200
52,511,200
54,395,200
56,301,200
58,228,200
60,177,200
62,148,200
52,899,600
51