Project Profile on the Establishment of

Corrugated Iron Sheet and nail products

Manufacturing plant

To Bahirdar zurya woreda industry

and investment office
OWNER; TSEADA ABEBE,
MOB NO;

JUN 2023
Bahir dar
0
 Table of Contents

1. Executive Summary................................................................................ 3
2. Product Description and Application ................................................... 3
3. Market Study, Plant Capacity and Production Program................... 4
3.1 Market Study ........................................................................................................4
3.1.1 Present Demand and Supply ........................................................................4
3.1.2 Projected Demand ........................................................................................5
3.1.3 Pricing and Distribution ...............................................................................5
3.2 Plant Capacity ......................................................................................................6
3.3 Production Program .............................................................................................8
4. Raw Materials and Utilities ................................................................... 8
4.1 Availability and Source of Raw materials ...........................................................8
4.2 Annual Requirement and Cost of Raw Materials and Utilities............................8
5. Location and Site .................................................................................. 10
6. Technology and Engineering ............................................................... 10
6.1 Production Process for nails...............................................................................10
6.2 Machinery and Equipment .................................................................................12
6.3 Civil Engineering Cost.......................................................................................13
7. Human Resource and Training Requirement ................................... 13
7.1 Human Resource ................................................................................................13
7.2 Training Requirement ........................................................................................13
8. Financial Analysis ................................................................................. 14
8.1 Underlying Assumption .....................................................................................14
8.2 Investment ..........................................................................................................15
8.3 Production Costs ................................................................................................15
8.4 Financial Evaluation ..........................................................................................16
9. Economic and Social Benefit and Justification.................................. 17
10 THE MACHINE LAYOUT OF THE FACTORY ............................. 18

1
Background of the project
Name of project: - TSEADA CORRUGATED IRON SHEET AND NAIL
MANUFACTURING FACTORY
Capital: - 90,000,000.00 ETB
Man power: -125 persons
Linkage:- backward linkage with steel manufacturing factory and
Forward linkage with the constriction sectors
Export: - 74% of the product export to African countries.
TECHNOLOGY:
The wire in the form of coil with diameters of 0.17-6 mm is first cleaned from rust and scale by
mechanical scrapper. The cleaned wire in the form of coil is fed into automatic heading and
pointing machines forming the final nail of desired size. This is collected for the next processing.
The collected piece is further transferred to tumbling machine for polishing and de-burring of the
finished nail ready for packing. Most nails are made from coils of metal wire. The wire is fed into a
nail-making machine which can produce up to 700 nails per minute. The nails may then be further
twisted or formed, cleaned, finished, and packaged.
Raw materials: - above 50% of raw materials have to be from local market.
Substitution; 60% of imported iron sheet and nail will be substituted.

2
 1. Executive Summary
This profile envisages the establishment of a wire and wire product making industry that has a capacity to produces
900 tons of common wire nail, 3,000 tons of galvanized wire and 1500 tons of barbed wire per year.
Steel and basic metal industries are key ingredients for economic growth. These industries are produce an essential
input for manufacturing & processing industries, building infrastructure, telecommunication and other sectors for
economic development. The industries require a large number of basic metal products for the expansion and transformation
of them from one stage to the next. Since over the past decade, the steel industry has experienced an unprecedented expansion
in production capacity, as many developing economies entered a metal intensive stage of growth.

However basic metal industries have to needs to efficient and effective capacity in order to perform and stay in
business success. In reality, the performance of manufacturing industries determined in resource utilization, product
quality, profit margin, sale growth, delivery time, interims achievement of demand and supply.

There is large unsatisfied demand for iron sheet and nail products. Thanks to the rapid growth of the construction
sector, the demand is expected to increase rapidly. The present demands are estimate at 1,875, 3,000, and 3,500 tons
for common, galvanized and barbed wires respectively. . The demands are expected to grow to 3,688, 5,901, and 6,885
in the year 2018, respectively.
The total investment requirement is estimated at Birr 90 million out of which Birr 33.05 million is for machinery and
equipment. The plant will create employment opportunities for 125 persons.

The project is financially viable with an internal rate of return (IRR) of 62.54% and net a present value (NPV) of Birr
60.2 million discounted at 18%.

2. Product Description and Application

Products proposed for manufacture by this project are secondary products of wire rod, including naked wire,
galvanized wire, nail, screw, staple and barbed wire. They are products which enjoy a large demand both in industrial
areas and agricultural districts. Therefore, the market for the products is great. Wire rod used as a starting material is
the small round bar with a diameter ranging from 5.5 to 19 mm. It comes in the shape of coil, with a bundle weighing
about 300 to 1,000 kg. In order to make wire rod into the thinner wire gauge required, it is put on a wire drawing
machine for gradual reduction of the sectional area of the rod. Corrugated iron sheet is used for roofing of houses
and other construction. Corrugated iron sheets are classified according to their thickness and surface area. Standard
gauge sizes are 28, 30 and 32. It is usually manufactured 2 meters in length and 1.2 meters in width. Corrugated iron

3
sheets are mostly used for roofing and fencing. Corrugation is a process of deforming plain sheets in the uniform way
or zigzag shapes pattern by rolling mills across their entire width.

3. Market Study, Plant Capacity and Production Program

3.1 Market Study
3.1.1 Present Demand and Supply
Table 1 summarize the estimated of wire and wire products consumed during the years 2010, 2011, 2012 and 2013.
More than 70% of these products have been imported. Assuming a 7% increase the current demand is estimated to be
1,875, 3,000, and 3,500 for common, galvanized and barbed wires. 74% of the product export to African

countries
Table 1: nail Products Consumed (in tons)

Year Common Wire Galvanized Wire Barbed Wire

2010 1,464 2,342 2,733
2011 1,557 2,492 2,907
2012 1,657 2,651 3,093
2013 1,763 2,820 3,290
The country’s requirement of corrugated iron sheet is met through both local production and imports.
According to CSA as of 2010 there are 23 local producers of corrugated iron sheet while the products are
imported from various countries. Table 2 summarizes local production, import and total supply or
apparent consumption of corrugated iron sheet.

Table 2: Local production and imported corrugated iron sheet in the country

Year Local Production Import Total

2002 35,341 6,023 41,364
2003 30,688 6,173 36,861
2004 70,761 3,048 73,808
2005 35,628 2,997 38,625
2006 114,223 592 114,815
2007 604,973 157 605,130
2008 643,903 763 644,666
2009 785,925 16,547 802,472
2010 464,308 17,064 481,372
2011 631,379 8,036 639,415

4
 Source: * CSA’s “Survey on Large and medium scale manufacturing”

** Ethiopian Revenues & Customs Authority

As can be seen from Table 3.1, the total supply or apparent consumption of corrugated iron sheet
during the period 2002 – 2011 reveals a growth trend specially beginning from year 2007. The
annual average total supply or apparent consumption which was 61,095 tons during the period
2002-2006 has increased to an annual average of 634,611 tons during the period 2007-2011.

Considering the nature of the trend in the apparent consumption of corrugated iron sheet it is
assumed that the growth rate registered in the past will also continue in the near future. During
the period 2002 – 2011 total supply of corrugated iron sheet has registered an average annual growth rate of 76.65%
which is on the high side. Hence, in order to be conservative a growth rate
of 10% is considered. Accordingly, taking the average apparent consumption during the period 2009-2011 as a base
and applying a growth rate of 10% the present effective demand (2012) for corrugated iron sheet is estimated at
705,195 tons.

3.1.2 Projected Demand

The future demand is based on the fact that constructions of all sorts are growing rapidly Therefore, the demand is
projected to increase at average annual rate of 7%. Table 2 shows the projects demand.
Table 2: Demand Projection
Common Wire Galvanized Wire Barbed Wire
Year (ton) (ton) (ton)
2014 1,875 3,000 3,500
2015 2,006 3,210 3,745
2016 2,147 3,435 4,007
2017 2,297 3,675 4,288
2018 2,458 3,932 4,588
2019 2,630 4,208 4,909
2020 2,814 4,502 5,253
2021 3,011 4,817 5,620
2022 3,222 5,155 6,014
2023 3,447 5,515 6,435
2024 3,688 5,901 6,885

3.1.3 Pricing and Distribution

Taking existing average market price as reference and deducting 20% for distributors, the factory selling prices are set

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at Birr 25,000/ton for common wire, Birr 26,000/ton for galvanized wire, and Birr 28,000/ton for barbed wire. Nail
and Gabion factories can buy directly from the plant. In addition, the existing market infrastructure will be used to
distribute the product. The estimated sailing price based on the current market value is birr 600,500, and 400 for 28,
30, and 32 gauge corrugated iron sheet respectively. Considering the nature of the products and the characteristics of the end
users a combination both direct distribution to end users (for bulk purchasers) and indirect distribution (using agents) is
selected as the most appropriate distribution channel.

3.2 Plant Capacity

The project has been worked out on the assumption that the annual total production will be about 5,400 tons, which
may be broken down as Table 3. The scheme may easily be changed in the event it is necessary to match the market
condition.

Table 3: Product types and amounts for nail

Annual
Product Type Production (ton)
Common nail 900
Galvanized nail 3,000
Barbed nail 1,500
Total 5,400

The envisaged plant has a capacity to produce 5,400 tons of wire and wire products in a year by operating 275
days a year in a single shift. The capacity can be doubles or even tripled by increasing the number of shift, if
the market allows.
The production programmes will be carried out in such a way that the plant will initially produce at 75% of its
capacity, and then will raise its production to 85% in the second year. It will then attain full capacity production
in the third and succeeding years. Such a gradual build-up of production is required in order to give opportunity

for production workers and technicians to develop skills and experience on operation and maintenance on
plant machinery and equipment.

Table 4: Production Program and Capacity for iron sheet

Production(in ton)
Year Capacity Utilization (%) 28 Gauge 30 Gauge 32 Gauge
1 75 44,800 56,000 56,000
2 85 54,400 68,000 68,000
3-10 100 64,000 80,000 80,000

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The annual production capacity for the envisaged plant will be 5,000 tons. This is based on a
single shift of 8 hours operation per day and for 300 days a year. When demand rises the
production capacity will also be increased either by feeding or rolling multiple sheets at the same time or
by introducing additional shifts.

3.3 Production Program

The proposed plant is relatively big in size and thus requires some time for learning and
penetrating the market. Thus it suggested that the plant starts operation at 60% capacity and
increase it by 10% annually to reach at full capacity level at the fifth year. 74% of the product

export to African countries

4. Raw Materials and Utilities

4.1 Availability and Source of Raw materials

In this project, it is presumed that wire rod having a diameter of 5.5 mm, which is most popular,
is used. It comes in the shape of coil, with a bundle weighing about 300 to 1,000 kg. As for the
secondary materials required, they include chemical reagents for pickling - chiefly sulphuric acid
- dies, lubricants, fuel oil and electric power for drawing, and a fairly large amount of industrial
water. The 50 % of metal wire rods are from local metal industries and the chemicals will be
imported.

4.2 Annual Requirement and Cost of Raw Materials and Utilities

The types, amounts and cost estimates of the required raw materials are shown in Table 4.

Table 4
Raw Material Requirements at Full Capacity for nail

Price (Birr)
Qty Local
No. Material (tons) Unit Purchase Import Total
Wire rod 5.5 mm 900 9500.5 2,850,150 950,050 3,800,200
Chemical reagents of 350 9800.5 1,886,596 1,543,579 3,430,175

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 different size
Total 950 5,076,761 4,153,714 9,230,475

The plant requires 110,000 kw electric power and 600 m3 water. The annual power and water
consumption costs are shown in Table 5.

The raw material used for producing corrugated iron sheets is plain iron sheets. Depending on
the required thickness of the iron sheet, the product can be of gauge thickness of 32, 30 and 28.
Auxiliary materials required by the plant include printing ink, wooden stands, lead and sulphuric
acid. The industry use around 50% of local metal supply to recycle and re use again for raw
materials to produce iron sheet, The annual requirement of the raw & auxiliary material at full
capacity production, including its cost is shown in Table 5 .

Table 5: Raw materials need to produce corrugated iron sheet and its costs

Table 5
Annual Cost of Utilities at Full Capacity

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 Unit Cost (Birr)

Electricity 110000 kw 60,500

Water 6000 m3 15,900

Total 76,400

5. Location and Site

Bahir Dar can host this plant. These cities do have sufficient power and communication facilities
that are important for this plant so bahir dar zuria woreda is an appropriate place for this
industry.

6. Technology and Engineering

6.1 Production Process for nails

1. Pickling operation
As stains and scale are attached to the surface of wire rod, pickling should be taken place prior to
be drawn so as to obtain a brilliant surface as a result of their removal. If the condition of scale
attached to the surface of wire rod is good, the mechanical descale is applied as descaling
method.
2. Drawing
One end of the bundle of wire rod is made narrower by the pointer so as to put it through the
hole of the die, and the wire rod is drawn by a motor derived clamper. The area reduction ratio
per pass of the die is about 25 per cent on an average. If the, diameter of wire rod is 5.5 mm, the
sectional area is 23.7 mm’. As the diameter of the hole, corresponding to 25% reduction of the
area, is about 4.76 mm, the wire rod is drawn through a 4.76 mm hole of die at first, narrowing it
by drawing. In the case of B.W.G. No. 12 of products, the number of drawings is five-six, while
in the case of B.W.G. No. 16, it is eight-nine. The area reduction ratio differs considerably
according to the quality of the material used. This is to say that the less the carbon content, the
larger the area reduction. Hence, the decrease in the number of passes. There are two kinds of
drawing machines, single and continuous. The single system consists of one die and one winding

10
drum. There are cases where several sets of the single system are set. The continuous system is
compact machinery in which several die blocks are set in one unit. In this project, 13 units of the
continuous system machinery are installed.
3. Annealing
Drawing brings about a change in the physical structure of steel, making it hard and brittle.
Therefore, it is subjected by the metallurgical treatment by annealing so as to provide softness.

4. Galvanization
About 76 per cent of wire products are galvanized in order to prevent weathering. The wire is
pickled on the occasion of galvanization because fair coating of zinc is unavailable without
cleaning the surface. The galvanization of wire is performed continuously, with several tens
wires galvanized simultaneously and in parallel. The zinc pot is made into a long casing in order
to increase the running speed of the wire for enhancement of productivity.
Alternative technology
An automatic wire netting machine and knitted into diamond shaped wire netting. In order to
shape the wire netting into the designated tubular form or rectangular cube form, the backbone
framework is made. This backbone framework is inserted in the central portion and outer edge of
the wire netting to produce the desired tubular or rectangular cube form.

Corrugated iron sheet production process

The production process of making corrugated iron sheet consisted of cleaning the rust and other
ingredients from the plain iron sheet, then drying by dry, hot air. Then the iron sheet is passed into the
molten lead to attain the required thickness. It is then dried by forced air from where it is fed to
feeding table by a suitable hoist or crane. Then they are conveyed to the corrugating
machine. After corrugation, the product is passed to correcting machine where deformation is
corrected. The product is then cut to standard size and trade mark of the company is printed. All
the different gauge products passed the same process with difference in thick ness. The
thicknesses high for smallest gauge reversely.

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 6.2 Machinery and Equipment
The required machineries and equipment’s are shown in Table 6.
Table 6
Required Machineries and Equipment’s for nails
Item Description
1 Pickling line

2 Drawing equipment’s
3 Annealing line
4 Galvanizing line
5 Barbed wire making equipment’s
Total

The total cost of the equipment is estimated at Birr 13.5m

Machinery, Equipment, and its costs for iron sheet

The machinery and equipment required for corrugated iron production are listed as follows. The
total cost of the machinery and equipment is 14, 950,000 birr.

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 6.3 Civil Engineering Cost
The total area required is 10,000 m2 the lease value of which is estimated at Birr 3,500,000. The
construction and civil engineering costs are estimated at Birr 8,856,000.

7. Human Resource and Training Requirement

7.1 Human Resource
The human resource requirement is shown in Table 8.

Table 8
Required Human Resource
Salary/Wage (Birr)

Job Title No. Monthly Annual

1 General Manager 1 25,000 300,000
2 Production Head 1 8,000 92,000
3 Engineer 3 7,000 252,000
4 Ass. Machinists 8 5,000 480,000
5 Operators and Unskilled Workers 79 2500 2,400,000
6 Personnel Head 2 9,000 216,000
7 Secretary 2 2800 672,000
8 Accountant 2 4,500 108,000
9 Marketing Officer 2 4,500 108,000
10 Casher 3 3,800 136,800
11 Security 6 2,500 180,000
12 Clerks 10 3700 444,000
13 Genitor 6 3500 252,000
Total 125 5,640,800
Employment Benefits 20% of Annual Salary 1,128,160
6,768,960

7.2 Training Requirement

Periodic on trainings are important. An annual training budget of Birr 200,000 is included in the
preproduction capital expenditure and working capitals.

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 8. Financial Analysis
8.1 Underlying Assumption
The financial analysis of this plant is based on the data provided in the preceding chapters and
the following assumptions.
Construction and Finance

Box 1: Construction and Finance

Construction period 2 year

Source of finance 15% equity and 85% loan
Tax holidays 2 years
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
Box 2: Depreciation

Building 5%
Machinery and equipment 10%
Office furniture 10%
Vehicles 20%
Pre-production (amortization) 20%
Working Capital (Minimum Days of Coverage)
Box 3: Working Capital (in days)

Raw Material-Local 30
Raw Material-Foreign 120
Factory Supplies in Stock 30
Spare Parts in Stock and Maintenance 30
Work in Progress 10
Finished Products 15
Accounts Receivable 30
Cash in Hand 30
Accounts Payable 30

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 8.2 Investment
The Total Initial Investment and working capital is estimated at Birr 90 million of which Birr
33.05 million is for plant machinery and equipment’s. The detail is shown in Table 8.
Table 7: Total Investment and Working Capital

Total Initial Investment

Item Cost
Land 3,000,000.00
Building and civil works 10,000,000.00
Office equipment
500,000.00
Vehicles*
4,000,000.00
Plant machinery & equipment
33,050,000.00
Total Fixed Investment
50,500,000.00
Pre-production capital expenditure**
20,500,000.00
Total Initial Investment
71,000,000.00
Working capital at full capacity
19,000,000.00
Total 90,000,000.00

8.3 Production Costs

The total production cost at full capacity is estimated at Birr 63.812 million. The details are
shown at Table 9.
Table 8: Production Cost at Full Capacity

Total Production Cost at Full Capacity

Items Cost
1. Raw materials 51,350,000.00
2. Utilities 76,400.00
3. Wages and Salaries 6,768,960.00
4. Spares and Maintenance 600,810.00
Factory costs 53,147,530.00
5. Depreciation 1,958,070.00
6. Financial costs
3,107,141.63
Total Production Cost 63,812,741.63

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 8.4 Financial Evaluation

I. Profitability
The income statement (Annex 4) shows that the proposed project generates profit starting from
the first year of operation. Profits starts at Birr 12.6 million in first year and reach at about 23.6
million in the eight year of the project life. Gross Profit to Sales starts at 23.81% and reach at
38.23% at eight year. The total profit to be earned during the whole ten years of operation
amounts Birr 207.49 million. These indicators prove that the project is highly profitable.
II. Breakeven Analysis

The breakeven analysis shows that the Total Revenue equals the Total Cost at 7.3% of capacity
which is achieved at the first year of operation.
III. Payback Period
The project pays back its initial investment at during the first year of operation.
Simple Rate of Return
The simple interest rate is 55.0%.

IV. Internal Rate of Return and Net Present Value

The Internal Rate of Return is 62.5% and the Net Present Value at 18% discount rate per annum
is Birr 60.2 million.

V. Sensitivity Analysis
A ten percent reduction in sales revenue reduces the total profit to about Birr 148.28 million
while a 10 % increase in price reduces it to Birr 172.27 million. The product is slightly more
sensitive to price than to volume of sales. Nevertheless, it can tolerate wide range of fluctuations.

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 9. Economic and Social Benefit and Justification

Based on the foregoing presentation and analysis, we can learn that the proposed project
possesses wide range of benefits that complement the financial feasibility obtained earlier. In
general the envisaged project 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 a total profit of Birr 207.49 million within
the project life. Such a result is attractive for a business undertaking.

B. Tax Revenue

In the project life under consideration, the government will collect about Birr 75.14 million from
corporate tax payment alone (i.e. excluding income tax, sales tax and VAT).

C. Import Substitution and Foreign Exchange Saving

The project has strong import substitution effect. Furthermore, there is a possibility to engage in
international market since the product has sustainable international demand.

D. Employment and Income Generation

The proposed project creates 126 jobs. The project creates income of Birr 6,780,960.00 per year.
This would be one of the commendable accomplishments of the project.

E. Diversification and Inter Sectoral linkage.

The proposed project helps to diversify ANRS’ and Ethiopian economy. It contributes to
industrialization of the economy.

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10 THE MACHINE LAYOUT OF THE FACTORY
10.1. Machinery specification and dimension
1. Nail Making Machine
Basic Info.
Model NO. LJ-ZDJ-714
Wire Diameter 1.5-2.5mm/2-3.5mm
Customized Customized
Advantage Widely Used
Material Wire Rod, Steel Wire
Usage Making Different Size of Nails
Nail Length 50-120mm
Using Life More Than 15 Years
Transport Package Plastic Package or as Required
Trademark LAIJI
Origin Anping County, Hebei Province, China
HS Code 846330
Production Capacity 70 Sets/Month
Product Description
1. Function:
1. This nail making machine adopts piston structure to ensure the high working speed,
low noise and less chance of impact characteristics.
2. Especially it can make excellent quality YouMao nail and other special-shaped nail,
which are suitable for high-speed studs for welding machine and nail gun.
2. Specifications of nail making machines:

Diameter Dimension
Model Length of nails Designed speed Motor Weight
of nails (L*W*H)
0.9-16.
Z94-1C 9-25mm 450PCS/min 1.5kw 1.5*1.3*1.1m 1.2tons
mm
Z94-2C 1.2-2.8mm 16-50mm 380PCS/min 2.2kw 1.7*1.3*1.4m 1.45tons

Z94-3C 1.8-3.5mm 30-75mm 320PCS/min 3kw 2.0*1.4*1.4m 1.8tons

Z94-4C 2.8-4.5mm 50-100mm 260PCS/min 4kw 2.2*1.6*1.6m 2tons

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 Z94-
2.8-5mm 50-120mm 260PCS/min 4kw 2.3*1.6*1.3m 2.1tons
4C(2)
Z94-
3.8-5.5mm 75-150mm 220PCS/min 5.5kw 2.5*1.8*1.5m 2.3tons
5.5C
Z94-
3.8-5.0mm 75-180mm 220PCS/min 5.5kw 2.5*1.8*1.5m 2.3tons
5.5C(2)

3. Machine features

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1. The nail making machine has the features of small in size, easy to move, low noise, low power
consumption, and it is easy to operate, just need to change different size mould for making
different diameter nails, if you want to make different lengths of nails for same diameter, no need
to change anything.
2. The nail making machines can feed the materials automatically, and making nail body straight,
nail points sharp and symmetric, nail caps round. Each nail made from this machine is excellent
and perfect.
3. The main components (shaft, cams and gear) of nail machine are made of high quality steel,
and durable in use, has good stability.
4. Free training of operating machines is offered
4.Picture of nail making machine

Terms:
Guarantee: One year, during this year, any broken parts caused by the quality, we can offer free,
after this year can offer with the lowest cost.
Install and training: Offer video and operation manual, if need engineer oversea service, the
customer need to pay the round air tickets, hotel, food and also the salary USD100 per engineer
one day.

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Delivery time: 20days after advance payment
Payment terms: T/T,30% in advance, and the balance before delivery also accept L/C
Packing: waterproof material, control box: wooden case and the customer's require

2. Full Automatic Double Standard Twisted Barbed Wire Making Machine CS-a

Purchase Qty. / Reference FOB Price

1-9 Sets US $4,500
10+ Sets US $4,200
Port: Tianjin, China

Production Capacity: 10set/Month

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 Payment Terms: L/C, T/T, Western Union,

Material: Galvanized Iron Wire: Twist Method: Double Twist

Application: Protecting Mesh, Finish: Electro Galvanized

Fence Mesh:

Razor Barbed Type: Cross Razor: Wire Gauge: 13X13 Bwg

Coil Outside Diameter: 960mm: Color: Blue

Name: CS-a Barbed Wire Machine: Raw Material: PVC/PE

Main Drive Speed: 402r/Min: Wire Diameter: 2.2mm-3.0mm

Basic Info.

Model NO. XM
Barbed Wire Diameter: 1.8mm-2.2mm
Barbed Space: (3′)/(4′)/(5′)
Twisted Number: 245m/Min
Main Part Size: 1950*950*1300mm
Unit Weight: 1050kg
Specification: Ce
Trademark XM
Transport Package Plastic Films/Woden Box
Specification Main Part Size: 1950*950*1300mm
Origin China
HS Code 8463300000
Product Description
Customer Question & Answer

22
Product Description
I. Description
Illustration of working principle:
This machine can produce barbed wire, the materials of barbed wire usually hot dipped
galvanized wire, electric galvanized wire and PVC coated wire etc.
Application: This machine can produce barbed wire which is widely used in national defense,
railway, highway, agriculture, animal husbandry and other industries.
Advantages: Saving materials and high capacity.
II.Theoretical parameter

Model CS-A Type

Motor power 2.2kw
Main drive shaft speed 402r/min
Wire diameter 2.2mm-3.0mm
Barbed wire diameter 1.8mm-2.2mm
Barbed space 76mm(3')/102mm(4')/127mmm(5')
Twisted number 3-5
Theoretical production 70kg/h
Total weight 1050kg
Main part size 1950mm*950mm*1300mm
Take-twisting part size 1760mm*550mm*760mm

Commercial terms
1. FOB price: Barbed Wire Machine CS-A: 4380 USD FOB Xingang Port, China
2. Payment: 30% T/T in advance, the balance 70% by T/T after check the machine at seller's
factory.
3. Minimum order quantity: 1 set
4. Certification: ISO 9001 Certificate
5. Delivery time: 30 days from received your payment in advance.
6. Country of origin: China
7. Our guarantee time: 12 months after the equipment is accepted by the buyer, however, the
guarantee period is no longer than 18 months after equipment's departure from Xingang port,
China.

23
8. Installation: we could arrange our engineer install the machine in your factory.
7. Our guarantee time: 12 months after the equipment is accepted by the buyer, however, the
guarantee period is no longer than 18 months after equipment's departure from Xingang port,
China.
8. Installation: we could arrange our engineer install the machine in our factory.

3. Semi-Automatic Saddle Stapled wire Production

Min. Order: 1 Set

Port: Ningbo, China

Production Capacity: 50 PCS/ Year

Payment Terms: L/C, T/T, Western Union

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Transmission Type: Flexible

Automatic Comprehensive
Production Line:

Certification: ISO

Automation: Automation

Flexible Production: Intelligent Manufacturing

Rhythm: Flow Production Line

Basic Info.

Model NO. LD1020B

Production Scope Product Line
Overall Dimensions 7700 X 2300 X 2500 mm
Machine Weight 6.5ton
Binding Way Wire Stapled
Usage Making Exercise Book
Automaticm Semi-Automatic
Manual Feeding Sheets by Hand
Process Stitching to Ready Notebook
Machine Color Green, Grey, White
Trademark LianDong
Transport Package Wooden Cases
Origin China
HS Code 8441100000
4. Semi-Automatic Saddle Stapled wire Production Machine (LD1020B)
Specifications:
Product model: LD1020B
Max. Output frequency: 45times
Total power: 5.5KW
Overall dimensions (L x W x H ): 7700 X 2300 X 2500mm3
Machine weight: 6.5T

25
 This machine is specialized in used for the exercise book binding from sheets to finish
product. It have the following function:
1. sheets feeding by hand
2. Cover feeder (optional)
3. Wire stitching / saddle stitching
4. Sheets folding
5. Pressing
6. Notebook back square pressing
7. notebook 3-side trimming
8. product collection
product model LD-1020

max output frequency 45times

total power 5.5KW
overall dimensions L x W x H 7700 x 2300 x 2500mm3
machine weight 6.5T

5. Galvanized Barbed Wire machine with Customizable Specifications

Min. Order / Reference FOB Price

1 Ton US $780/ Ton

Port: Tianjin,China

Production Capacity: 100 Tons/Day

Payment Terms: L/C, T/T, D/P

Material: Low-Carbon Iron Wire

Twist Method: Double Twist

Application: Protecting Mesh, Fence Mesh

Finish: Hot Dipped Galvanized

26
Wire Gauge: 12x12 BWG

Barbed Distance: 4"

Basic Info.

Barb Length 15mm

Color According to Your Request

Material 1 Low Carbon Steel Wire

Wire PVC Coated Wire, Electro Galvanized Wire

Transport Package 20kgs/Roll

Specification ISO9001: 2008

Origin Hebei, China (Mainland)

HS Code 73130000

Product Description Customer Question & Answer

Cheap Price Wholesale Galvanized Barbed Wire with Customizable Specifications

Barbed wire fence is made of Q195 high quality low carbon steel wire, through the machine
drawing into the corresponding wire diameter of wire, and then through the automatic screw
machine will make barbed wire barbed wire wound on the main wire, through a variety of
weaving process and the formation of protection fence.

1. Material: Low-carbon steel wire, Galvanized wire, Stainless steel wire

2. Surface treatment: Electro galvanized, Hot-dipped galvanized, PVC coated, Powder coated,
Painted

3. Package: With pallet, razor barbed wire with waterproof paper, or as your request

4. Application: Mainly used as security barrier around the airport, prison, and other anti-climbing
projects.

27
5. Weaving process: Screw; Galvanized barbed wire
5. Full Automatic Double Twist Barbed Wire Making Machine

Purchase Qty. / Reference FOB Price

1-9 Sets US $4,500

10+ Sets US $4,200

Port: Tianjin, China

Production Capacity: 10set/Month

Payment Terms: L/C, T/T, Western Union,

Material: Galvanized Iron Wire: Twist Method: Double Twist

Application: Protecting Mesh, Fence Finish: Electro Galvanized

Mesh:

Razor Barbed Type: Cross Razor: Wire Gauge: 13X13 Bwg

Coil Outside Diameter: 960mm: Color: Blue

Name: CS-a Barbed Wire Machine: Raw Material: PVC/PE

Main Drive Speed: 402r/Min: Wire Diameter: 2.2mm-3.0mm

Basic Info.

Model NO. XM
Barbed Wire Diameter: 1.8mm-2.2mm
Barbed Space: (3′)/(4′)/(5′)
Twisted Number: 245m/Min
Main Part Size: 1950*950*1300mm
Unit Weight: 1050kg
Specification: Ce
Trademark XM

28
Transport Package Plastic Films/Woden Box
Specification Main Part Size: 1950*950*1300mm
Origin China
HS Code 8463300000
Product Description
Customer Question & Answer
Product Description
I. Description
Illustration of working principle:
This machine can produce barbed wire, the materials of barbed wire usually hot dipped
galvanized wire, electric galvanized wire and PVC coated wire etc.
Application: This machine can produce barbed wire which is widely used in national defense,
railway, highway, agriculture, animal husbandry and other industries.
Advantages: Saving materials and high capacity.
II.Theoretical parameter

Model CS-A Type

Motor power 2.2kw

Main drive shaft speed 402r/min

Wire diameter 2.2mm-3.0mm

Barbed wire diameter 1.8mm-2.2mm

Barbed space 76mm(3')/102mm(4')/127mmm(5')

Twisted number 3-5

Theoretical production 70kg/h

Total weight 1050kg

Main part size 1950mm*950mm*1300mm

Take-twisting part size 1760mm*550mm*760mm

Commercial terms
1. FOB price: Barbed Wire Machine CS-A: 4380 USD FOB Xingang Port, China
2. Payment: 30% T/T in advance, the balance 70% by T/T after check the machine at seller's

29
factory.
3. Minimum order quantity: 1 set
4. Certification: ISO 9001 Certificate
5. Delivery time: 30 days from received your payment in advance.
6. Country of origin: China
7. Our guarantee time: 12 months after the equipment is accepted by the buyer, however, the
guarantee period is no longer than 18 months after equipment's departure from Xingang port,
China.
8. Installation: we could arrange our engineer install the machine in your factory.
7. Our guarantee time: 12 months after the equipment is accepted by the buyer, however, the
guarantee period is no longer than 18 months after equipment's departure from Xingang port,
China.
8. Installation: we could arrange our engineer install the machine in our factory.

30
 6. Main machine introduction of galvanized wire roll mesh welding machine
1 Both of the longitude wire and cross wire are fed from wire coils automatically.

2 The raw material is suitable for low-carbon steel wire (black wire) and galvanized wire.

3 The middle cutter and sider cutters can be adjusted randomly to make two mesh rolls at same time.

The welding time and welding current can be adjusted on the control panel to adjust the welding
4
degree.

5 The welding transformers have 8 degrees and can be adjusted for different wire diameters.

6 The mesh roll length can be set by counter switch on the control panel.

Steel bar mesh welding machine

Model: DP-GW-2500A.
Wire diameter: 3-8mm/ 5-12mm.
Welding width: Max.2500mm.
Longitude wire space: 100-300mm.
Cross wire space: Min.50mm.
Mesh length: Max.12000mm.
Wire feeding way: Pre-straightened & pre-cut.
Welding speed: 50-75 times/min.
Welding speed: 40-65times/min
Welding electrodes: Max.24pcs
Welding transformers:150kva*12pcs
Machine size: 8.4*5.5*2.1m
Weight: 8.5T

7. Full automatic chain link fence making machine

Wire Diameter: 2-4mm.
Mesh Size: 25-85mm.
Max. Mesh Width: 4000mm.
Max. Mesh Length: 20M, adjustable freely.
Production: 120-180 square meters/hour.

31
 Motor: 9.25kw.
Electric system:
1.Japan Mitsubishi PLC origin.
2. Servo motor.
3. French Schneider (Low-voltage electrical system).
4. Electric & Machinery from Taiwan Teco Electronic.
Weight: 4200 KGS.
Machine Dimension: 6700*1430*1800mm.
Raw Material: High-quality low-carbon steel wire, Galvanized, stainless wire, Aluminum
alloy wire, PVC Coated wire.

8 Full Automatic Building Material Machinery Corrugated Iron Roof Sheet Making
Machine Double Layer Roll Forming Machine

32
33
SPACE REQUIREMENT FOR NON PRODUCTION AREA
As mention above the non production area set a standard, this standard multiplies by number of
worker we get the required area

Roll Area(m2) Total

Description
No (m2)
01 General director office 1*43=43 43
02 Individual office 12*18.5 222
03 Cafeteria 510*0.929 473.8
04 Locker 497*0.67 332.99
05 Toilet, shower, and hand wash room (for male) 76.93 76.93
06 Toilet, shower, and hand wash room (for female) 76.93 76.93
07 Parking area 9.67+16.77 26.44
08 First aid 2*23 46
09 Raw material storage 100 100
10 Finished product storage 100 100
11 Docking area 36 36

34
12 heat treatment(curing) 15.96 15.96
13 Maintenance room 81.6 81.6
14 Packing area 66 66
15 Guard house 25 25
16 Green area 300 300
17 Product display room 50 50
Sub total 1872.65

Consider the number of line or full automatic processing line is 5 that means five full automatic
processing machine. the total land required for the factory is production area plus nonproduction
area multiplied by land to building ratio is approximated to 10,000m2.

35
 Annex 1: Total Net Working Capital Requirements (in Birr)
CONSTRUCTION PRODUCTION
Year 1 Year 2 1 2 3 4

Capacity Utilization (%) 0 0 60% 70% 80% 90%

1. Total Inventory 0 0 23,614,433 27,550,172 31,485,911 35,421,650

Raw Materials in Stock- Total 0 0 10,416,927 12,153,082 13,889,236 15,625,391

Raw Material-Local 0 0 1,009,145 1,177,336 1,345,527 1,513,718

Raw Material-Foreign 0 0 9,407,782 10,975,745 12,543,709 14,111,673

Factory Supplies in Stock 0 0 36,069 42,081 48,092 54,104

Spare Parts in Stock and Maintenance 0 0 39,326 45,880 52,434 58,989

Work in Progress 0 0 901,728 1,052,016 1,202,304 1,352,592

Finished Products 0 0 1,803,456 2,104,032 2,404,608 2,705,184

2. Accounts Receivable 0 0 5,792,727 6,758,182 7,723,636 8,689,091

3. Cash in Hand 0 0 78,331 91,386 104,441 117,496

CURRENT ASSETS 0 0 19,068,564 22,246,658 25,424,752 28,602,846

4. Current Liabilities 0 0 5,792,727 6,758,182 7,723,636 8,689,091

Accounts Payable 0 0 5,792,727 6,758,182 7,723,636 8,689,091

TOTAL NET WORKING CAPITAL REQUIREMENTS 0 0 13,275,837 15,488,476 17,701,116 19,913,755

INCREASE IN NET WORKING CAPITAL 0 0 13,275,837 2,212,639 2,212,639 2,212,639

34
 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 39,357,389 39,357,389 39,357,389 39,357,389 39,357,389 39,357,389

Raw Materials in Stock-Total 17,361,545 17,361,545 17,361,545 17,361,545 17,361,545 17,361,545

Raw Material-Local 1,681,909 1,681,909 1,681,909 1,681,909 1,681,909 1,681,909

Raw Material-Foreign 15,679,636 15,679,636 15,679,636 15,679,636 15,679,636 15,679,636

Factory Supplies in Stock 60,115 60,115 60,115 60,115 60,115 60,115

Spare Parts in Stock and Maintenance 65,543 65,543 65,543 65,543 65,543 65,543

Work in Progress 1,502,880 1,502,880 1,502,880 1,502,880 1,502,880 1,502,880

Finished Products 3,005,760 3,005,760 3,005,760 3,005,760 3,005,760 3,005,760

2. Accounts Receivable 9,654,545 9,654,545 9,654,545 9,654,545 9,654,545 9,654,545

3. Cash in Hand 130,551 130,551 130,551 130,551 130,551 130,551

CURRENT ASSETS 31,780,940 31,780,940 31,780,940 31,780,940 31,780,940 31,780,940

4. Current Liabilities 9,654,545 9,654,545 9,654,545 9,654,545 9,654,545 9,654,545

Accounts Payable 9,654,545 9,654,545 9,654,545 9,654,545 9,654,545 9,654,545

TOTAL NET WORKING CAPITAL REQUIREMENTS 22,126,395 22,126,395 22,126,395 22,126,395 22,126,395 22,126,395

INCREASE IN NET WORKING CAPITAL 2,212,639 0 0 0 0 0

35
 Annex 2: Cash Flow Statement (in Birr)
CONSTRUCTION PRODUCTION
Year 1 Year 2 1 2 3 4
TOTAL CASH INFLOW 10,514,175 32,640,570 58,892,727 62,915,455 71,765,455 80,615,455
1. Inflow Funds 10,514,175 32,640,570 5,792,727 965,455 965,455 965,455
Total Equity 4,205,670 13,056,228 0 0 0 0
Total Long Term Loan 6,308,505 19,584,342 0 0 0 0
Total Short Term Finances 0 0 5,792,727 965,455 965,455 965,455
2. Inflow Operation 0 0 53,100,000 61,950,000 70,800,000 79,650,000
Sales Revenue 0 0 53,100,000 61,950,000 70,800,000 79,650,000
Interest on Securities 0 0 0 0 0 0
3. Other Income 0 0 0 0 0 0
TOTAL CASH OUTFLOW 10,514,175 10,514,175 57,565,138 47,979,398 59,840,573 65,849,917
4. Increase In Fixed Assets 10,514,175 10,514,175 0 0 0 0
Fixed Investments 10,013,500 10,013,500 0 0 0 0
Pre-production Expenditures 500,675 500,675 0 0 0 0
5. Increase in Current Assets 0 0 19,068,564 3,178,094 3,178,094 3,178,094
6. Operating Costs 0 0 32,068,911 37,378,688 42,688,466 47,998,243
7. Corporate Tax Paid 0 0 0 0 7,069,254 8,286,678
8. Interest Paid 0 0 6,427,663 3,107,142 2,589,285 2,071,428
9. Loan Repayments 0 0 0 4,315,474 4,315,474 4,315,474
10. Dividends Paid 0 0 0 0 0 0
Surplus (Deficit) 0 22,126,395 1,327,589 14,936,056 11,924,882 14,765,537
Cumulative Cash Balance 0 22,126,395 23,453,984 38,390,041 50,314,922 65,080,459

36
 Annex 2: Cash Flow Statement (in Birr): Continued
PRODUCTION
5 6 7 8 9 10
TOTAL CASH INFLOW 89,465,455 88,500,000 88,500,000 88,500,000 88,500,000 88,500,000
1. Inflow Funds 965,455 0 0 0 0 0
Total Equity 0 0 0 0 0 0
Total Long Term Loan 0 0 0 0 0 0
Total Short Term Finances 965,455 0 0 0 0 0
2. Inflow Operation 88,500,000 88,500,000 88,500,000 88,500,000 88,500,000 88,500,000
Sales Revenue 88,500,000 88,500,000 88,500,000 88,500,000 88,500,000 88,500,000
Interest on Securities 0 0 0 0 0 0
3. Other Income 0 0 0 0 0 0
TOTAL CASH OUTFLOW 71,859,262 68,498,749 68,136,249 63,458,275 63,458,275 63,458,275
4. Increase In Fixed Assets 0 0 0 0 0 0
Fixed Investments 0 0 0 0 0 0
Pre-production Expenditures 0 0 0 0 0 0
5. Increase in Current Assets 3,178,094 0 0 0 0 0
6. Operating Costs 53,308,021 53,308,021 53,308,021 53,308,021 53,308,021 53,308,021
7. Corporate Tax Paid 9,504,101 9,839,540 9,994,897 10,150,254 10,150,254 10,150,254
8. Interest Paid 1,553,571 1,035,714 517,857 0 0 0
9. Loan Repayments 4,315,474 4,315,474 4,315,474 0 0 0
10. Dividends Paid 0 0 0 0 0 0
Surplus (Deficit) 17,606,193 20,001,251 20,363,751 25,041,725 25,041,725 25,041,725
Cumulative Cash Balance 82,686,652 102,687,903 123,051,654 148,093,380 173,135,105 198,176,830

37
 Annex 3: DISCOUNTED CASH FLOW-TOTAL CAPITAL INVESTED
CONSTRUCTION PRODUCTION
Year 1 Year 2 1 2 3 4
TOTAL CASH INFLOW 0 0 53,100,000 61,950,000 70,800,000 79,650,000

1. Inflow Operation 0 0 53,100,000 61,950,000 70,800,000 79,650,000

Sales Revenue 0 0 53,100,000 61,950,000 70,800,000 79,650,000

Interest on Securities 0 0 0 0 0 0

2. Other Income 0 0 0 0 0 0

TOTAL CASH OUTFLOW 10,514,175 10,514,175 45,344,748 39,591,328 44,901,105 58,497,561

3. Increase in Fixed Assets 10,514,175 10,514,175 0 0 0 0

Fixed Investments 10,013,500 10,013,500 0 0 0 0

Pre-production Expenditures 500,675 500,675 0 0 0 0

4. Increase in Net Working Capital 0 0 13,275,837 2,212,639 2,212,639 2,212,639

5. Operating Costs 0 0 32,068,911 37,378,688 42,688,466 47,998,243

6. Corporate Tax Paid 0 0 0 0 0 8,286,678

NET CASH FLOW -10,514,175 -10,514,175 7,755,252 22,358,672 25,898,895 21,152,439

CUMULATIVE NET CASH FLOW -10,514,175 -21,028,350 -13,273,098 9,085,575 34,984,470 56,136,909

Net Present Value (at 18%) -10,514,175 -8,910,318 5,569,702 13,608,178 13,358,362 9,245,926

Cumulative Net present Value -10,514,175 -19,424,493 -13,854,791 -246,613 13,111,749 22,357,675

38
 Annex 3: DISCOUNTED CASH FLOW-TOTAL CAPITAL INVESTED (Continued)
PRODUCTION
5 6 7 8 9 10
TOTAL CASH INFLOW 88,500,000 88,500,000 88,500,000 88,500,000 88,500,000 88,500,000

1. Inflow Operation 88,500,000 88,500,000 88,500,000 88,500,000 88,500,000 88,500,000

Sales Revenue 88,500,000 88,500,000 88,500,000 88,500,000 88,500,000 88,500,000

Interest on Securities 0 0 0 0 0 0

2. Other Income 0 0 0 0 0 0

TOTAL CASH OUTFLOW 65,024,762 63,147,561 63,302,918 63,458,275 63,458,275 63,458,275

3. Increase in Fixed Assets 0 0 0 0 0 0

Fixed Investments 0 0 0 0 0 0

Pre-production Expenditures 0 0 0 0 0 0

4. Increase in Net Working Capital 2,212,639 0 0 0 0 0

5. Operating Costs 53,308,021 53,308,021 53,308,021 53,308,021 53,308,021 53,308,021

6. Corporate Tax Paid 9,504,101 9,839,540 9,994,897 10,150,254 10,150,254 10,150,254

NET CASH FLOW 23,475,238 25,352,439 25,197,082 25,041,725 25,041,725 25,041,725

CUMULATIVE NET CASH FLOW 79,612,147 104,964,587 130,161,669 155,203,394 180,245,119 205,286,845

Net Present Value (at 18%) 8,695,969 7,958,765 6,703,386 5,645,809 4,784,584 4,054,732

Cumulative Net present Value 31,053,644 39,012,409 45,715,795 51,361,604 56,146,187 60,200,920

Net Present Value (at 18%) 60,200,919.55

Internal Rate of Return 62.5%

39
 Annex 4: NET INCOME STATEMENT ( in Birr)
PRODUCTION
1 2 3 4 5

Capacity Utilization (%) 60% 70% 80% 90% 100%

1. Total Income 53,100,000 61,950,000 70,800,000 79,650,000 88,500,000

Sales Revenue 53,100,000 61,950,000 70,800,000 79,650,000 88,500,000

Other Income 0 0 0 0 0

2. Less Variable Cost 31,589,789 36,854,754 42,119,718 47,384,683 52,649,648

VARIABLE MARGIN 21,510,211 25,095,246 28,680,282 32,265,317 35,850,352

(In % of Total Income) 40.51 40.51 40.51 40.51 40.51

3. Less Fixed Costs 2,437,192 2,482,005 2,526,817 2,571,630 2,616,443

OPERATIONAL MARGIN 19,073,019 22,613,242 26,153,464 29,693,687 33,233,909

(In % of Total Income) 35.92 36.50 36.94 37.28 37.55

4. Less Cost of Finance 6,427,663 3,107,142 2,589,285 2,071,428 1,553,571

5. GROSS PROFIT 12,645,356 19,506,100 23,564,180 27,622,259 31,680,338

6. Income (Corporate) Tax 0.00 0.00 7,069,254 8,286,678 9,504,101

7. NET PROFIT 12,645,356 19,506,100 16,494,926 19,335,581 22,176,237

RATIOS (%)

Gross Profit/Sales 23.81% 31.49% 33.28% 34.68% 35.80%

Net Profit After Tax/Sales 23.81% 31.49% 23.30% 24.28% 25.06%

Return on Investment 55.60% 61.93% 49.28% 52.29% 54.99%

Return on Equity 73.26% 113.00% 95.56% 112.01% 128.47%

40
 Annex 4: NET INCOME STATEMENT (in Birr): Continued
PRODUCTION
6 7 8 9 10
Capacity Utilization (%) 100% 100% 100% 100% 100%

1. Total Income 88,500,000 88,500,000 88,500,000 88,500,000 88,500,000

Sales Revenue 88,500,000 88,500,000 88,500,000 88,500,000 88,500,000

Other Income 0 0 0 0 0
2. Less Variable Cost 52,649,648 52,649,648 52,649,648 52,649,648 52,649,648

VARIABLE MARGIN 35,850,352 35,850,352 35,850,352 35,850,352 35,850,352

(In % of Total Income) 40.51 40.51 40.51 40.51 40.51

3. Less Fixed Costs 2,016,173 2,016,173 2,016,173 2,016,173 2,016,173

OPERATIONAL MARGIN 33,834,179 33,834,179 33,834,179 33,834,179 33,834,179

(In % of Total Income) 38.23 38.23 38.23 38.23 38.23

4. Less Cost of Finance 1,035,714 517,857 0 0 0

5. GROSS PROFIT 32,798,465 33,316,322 33,834,179 33,834,179 33,834,179

6. Income (Corporate) Tax 9,839,540 9,994,897 10,150,254 10,150,254 10,150,254

7. NET PROFIT 22,958,926 23,321,425 23,683,925 23,683,925 23,683,925

RATIOS (%)

Gross Profit/Sales 37.06% 37.65% 38.23% 38.23% 38.23%

Net Profit After Tax/Sales 25.94% 26.35% 26.76% 26.76% 26.76%

Return on Investment 55.60% 55.24% 54.88% 54.88% 54.88%

Return on Equity 133.00% 135.10% 137.20% 137.20% 137.20%

41
 Annex 5: Projected Balance Sheet (in Birr)
CONSTRUCTION PRODUCTION
Year 1 Year 2 1 2 3 4
TOTAL ASSETS 10,514,175 43,154,745 61,592,828 77,748,909 90,893,814 106,879,376
1. Total Current Assets 0 22,126,395 42,522,548 60,636,699 75,739,674 93,683,306
Inventory on Materials and Supplies 0 0 10,492,322 12,241,042 13,989,763 15,738,483
Work in Progress 0 0 901,728 1,052,016 1,202,304 1,352,592
Finished Products in Stock 0 0 1,803,456 2,104,032 2,404,608 2,705,184
Accounts Receivable 0 0 5,792,727 6,758,182 7,723,636 8,689,091
Cash in Hand 0 0 78,331 91,386 104,441 117,496
Cash Surplus, Finance Available 0 22,126,395 23,453,984 38,390,041 50,314,922 65,080,459
Securities 0 0 0 0 0 0
2. Total Fixed Assets, Net of Depreciation 10,514,175 21,028,350 19,070,280 17,112,210 15,154,140 13,196,070
Fixed Investment 0 10,013,500 20,027,000 20,027,000 20,027,000 20,027,000
Construction in Progress 10,013,500 10,013,500 0 0 0 0
Pre-Production Expenditure 500,675 1,001,350 1,001,350 1,001,350 1,001,350 1,001,350
Less Accumulated Depreciation 0 0 1,958,070 3,916,140 5,874,210 7,832,280
3. Accumulated Losses Brought Forward 0 0 0 0 0 0
4. Loss in Current Year 0 0 0 0 0 0
TOTAL LIABILITIES 10,514,175 43,154,745 61,592,828 77,748,909 90,893,814 106,879,376
5. Total Current Liabilities 0 0 5,792,727 6,758,182 7,723,636 8,689,091
Accounts Payable 0 0 5,792,727 6,758,182 7,723,636 8,689,091
Bank Overdraft 0 0 0 0 0 0
6. Total Long-term Debt 6,308,505 25,892,847 25,892,847 21,577,372 17,261,898 12,946,423
Loan A 6,308,505 25,892,847 25,892,847 21,577,372 17,261,898 12,946,423
Loan B 0 0 0 0 0 0
7. Total Equity Capital 4,205,670 17,261,898 17,261,898 17,261,898 17,261,898 17,261,898
Ordinary Capital 4,205,670 17,261,898 17,261,898 17,261,898 17,261,898 17,261,898
Preference Capital 0 0 0 0 0 0
Subsidies 0 0 0 0 0 0
8. Reserves, Retained Profits Brought Forward 0 0 0 12,645,356 32,151,457 48,646,382
9. Net Profit After Tax 0 0 12,645,356 19,506,100 16,494,926 19,335,581
Dividends Payable 0 0 0 0 0 0
Retained Profits 0 0 12,645,356 19,506,100 16,494,926 19,335,581

42
 Annex 5: Projected Balance Sheet (in Birr): Continued
PRODUCTION
5 6 7 8 9 10
TOTAL ASSETS 125,705,592 144,349,044 163,354,995 187,038,920 210,722,845 234,406,770
1. Total Current Assets 114,467,592 134,468,844 154,832,595 179,874,320 204,916,045 229,957,770
Inventory on Materials and Supplies 17,487,204 17,487,204 17,487,204 17,487,204 17,487,204 17,487,204
Work in Progress 1,502,880 1,502,880 1,502,880 1,502,880 1,502,880 1,502,880
Finished Products in Stock 3,005,760 3,005,760 3,005,760 3,005,760 3,005,760 3,005,760
Accounts Receivable 9,654,545 9,654,545 9,654,545 9,654,545 9,654,545 9,654,545
Cash in Hand 130,551 130,551 130,551 130,551 130,551 130,551
Cash Surplus, Finance Available 82,686,652 102,687,903 123,051,654 148,093,380 173,135,105 198,176,830
Securities 0 0 0 0 0 0
2. Total Fixed Assets, Net of Depreciation 11,238,000 9,880,200 8,522,400 7,164,600 5,806,800 4,449,000
Fixed Investment 20,027,000 20,027,000 20,027,000 20,027,000 20,027,000 20,027,000
Construction in Progress 0 0 0 0 0 0
Pre-Production Expenditure 1,001,350 1,001,350 1,001,350 1,001,350 1,001,350 1,001,350
Less Accumulated Depreciation 9,790,350 11,148,150 12,505,950 13,863,750 15,221,550 16,579,350
3. Accumulated Losses Brought Forward 0 0 0 0 0 0
4. Loss in Current Year 0 0 0 0 0 0
TOTAL LIABILITIES 125,705,592 144,349,044 163,354,995 187,038,920 210,722,845 234,406,770
5. Total Current Liabilities 9,654,545 9,654,545 9,654,545 9,654,545 9,654,545 9,654,545
Accounts Payable 9,654,545 9,654,545 9,654,545 9,654,545 9,654,545 9,654,545
Bank Overdraft 0 0 0 0 0 0
6. Total Long-term Debt 8,630,949 4,315,474 0 0 0 0
Loan A 8,630,949 4,315,474 0 0 0 0
Loan B 0 0 0 0 0 0
7. Total Equity Capital 17,261,898 17,261,898 17,261,898 17,261,898 17,261,898 17,261,898
Ordinary Capital 17,261,898 17,261,898 17,261,898 17,261,898 17,261,898 17,261,898
Preference Capital 0 0 0 0 0 0
Subsidies 0 0 0 0 0 0
8. Reserves, Retained Profits Brought Forward 67,981,963 90,158,200 113,117,126 136,438,551 160,122,476 183,806,402
9. Net Profit After Tax 22,176,237 22,958,926 23,321,425 23,683,925 23,683,925 23,683,925
Dividends Payable 0 0 0 0 0 0
Retained Profits 22,176,237 22,958,926 23,321,425 23,683,925 23,683,925 23,683,925

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