Profile for the Production of Fibre From Kenaf and Sisal - SNNPR ...

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223-14Table 7.1INITIAL INVESTMENT COSTSr.No.Cost ItemsTotal Cost(‘000 Birr)1 Land lease value 2402 Building and Civil Work 3,000.003 Plant Machinery and Equipment 687.504 Office Furniture and Equipment 755 Vehicle 2006 Pre-production Expenditure* 373.417 Working Capital 4343.59Total Investment cost 8,919.5Foreign Share 29* N.B Pre-production expenditure includes interest during construction (Birr273,410 ) and Birr 100 thousand costs of registration, licensing and formation of thecompany including legal fees, commissioning expenses, etc.B. PRODUCTION COSTThe annual production cost at full operation capacity is estimated at Birr 24.89 million(see Table 7.2). The material and utility cost accounts for 95.12 per cent, while repairand maintenance take 0.30 per cent of the production cost.
223-15Table 7.2ANNUAL PRODUCTION COST AT FULL CAPACITY ('000 BIRR)Items Cost %Raw Material and Inputs23,633.75 95.07Utilities13.38 0.05Maintenance and repair75 0.30Labour direct298.56 1.20Factory overheads99.52 0.40Administration Costs199.04 0.80Total Operating Costs24,319.25 97.82Depreciation286.25 1.15Cost of Finance254.48 1.02Total Production Cost 24,859.98 100C. FINANCIAL EVALUATION1. ProfitabilityAccording to the projected income statement, the project will start generating profit in thefirst year of operation. Important ratios such as profit to total sales, net profit to equity(Return on equity) and net profit plus interest on total investment (return on totalinvestment) show an increasing trend during the life-time of the project.The income statement and the other indicators of profitability show that the project isviable.
Page 1 and 2: 223. PROFILE FOR THE PRODUCTION OFF
Page 3 and 4: 223-3I. SUMMARYThis profile envisag
Page 5: 223-5− One kg of sisal fiber rope
Page 8: 223-8and 2500 tons of kenaf fibre w
Page 11 and 12: 223-11land lease value will be Birr
Page 13: 223-13VII. FINANCIAL ANALYSISThe fi

Profile for the Production of Fibre From Kenaf and Sisal - SNNPR ...

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