II

Job Description

Direct Labour
1. Production Manager
2. Foreman
3. Machine Operators
4. Maintenance staff
( Technicians)
5. Factory Labourers
6. Farm Workers
(i) Permanent
(ii) Casuals-(6months)

PROJECTED LABOUR REQUIREMENTS AND COSTS 000

No Monthly
Req Salaries

Annual
Salaries

1st year

2nd year

3rd year

4th year

5th year

1
8
60
10

120.0
75.00
24.00
30.00

1440.0
7200.0
17,280.0
3,600.0

1584.0
7920.0
19,008.0
3960.0

1728.0
8640.0
20,736.0
4,320.0

1728.0
8640.0
20,736.0
4,320.0

1728.0
8640.0
20,736.0
4,320.0

1728.0
8640.0
20,736.0
4,320.0

20

21.00

5,040.0

5,544.0

6,048.0

6,048.0

6,048.0

6,048.0

10
150

20.00
18.00

2,400.0
16,200.0

2,640.0
17,820.0

2,880.0
19,440.0

2,880.0
19,440.0

2,880.0
19,440.0

2,880.0
19,440.0

53,120.0

58,476.0

63,792.0

63,792.0

63,792.0

10,000.0

10,000.0

12,000.0

12,000.0

12,000.0

3,600.0
1,320.0
960.0
1080.0
540.0
900.0
5,400.0
960.0
480.0
2,016.0
1,200.0

3,960.0
1,452.0
1056.0
1,188.0
594.0
990.0
5,940.0
1,058.0
528.0
2,217.0
1,320.0

4,320.0
1,584.0
1,152.0
1,296.0
648.0
1,080.0
6,480.0
1,152.0
576.0
2,419.0
1,440.0

4,320.0
1,584.0
1,152.0
1,296.0
648.0
1,080.0
6,480.0
1,152.0
576.0
2,419.0
1,440.0

4,320.0
1,584.0
1,152.0
1,296.0
648.0
1,080.0
6,480.0
1,152.0
576.0
2,419.0
1,440.0

Sub Total
Indirect Labour
7. Board of
Directors/sitting
Allowance
8. Managing Director
9. Administrative Mang.
10. Company Secretary
11. Adm. Clerks
12. Staff Nurse
13. Asst. Nurse
14. Drivers
15. Messenger/Cleaners
16. Gardeners
17. Security Guards
18. Sales Manager

1
1
1
3
1
2
18
4
4
10
1

300.0
110.0
80.0
30.0
45.0
25.0
25.0
20.0
20.0
21.0
100.0

3600.0
1320.0
960.0
360.0
540.0
300.0
300.0
240.0
240.0
252.0
1,200.0

19. Salesmen
20 Accountant
21. Accounts Clerks
22 Store keepers
23. Store Clerks
24. Purchase Clerks
Welfare Package Total

18
1
4
2
4
1

40.0
100.0
30.0
35.0
30.0
30.0

WELFARE PACKAGE
Comprehensive Health Insurance.
Free medical at the factory sick bay.
Annual leave
Car/motor Cycle loan
Pension Schemes
Staff canteen e.t.c.

480.0
1,200.0
360.0
420.0
360.0
360.0

4,800.0
1,200.0
1,440.0
840.0
2,160.0
720.0
20,000.0
59,616.0
112,736.0

5,280.0
1,320.0
1,584.0
924.0
2,376.0
742.0
20,000.0
62,529.0
121,005.0

5,808.0
1,440.0
1,728.0
1,008.0
2,592.0
864.0
25,000.0
72,583.0
136,375.0

5,808.0
1,440.0
1,728.0
1,008.0
2,592.0
864.0
25,000.0
72,583.0
136,375.0

5,808.0
1,440.0
1,728.0
1,008.0
2,592.0
864.0
25,000.0
72,583.0
136,375.0

PRODUCTION CAPACITIES AND REVENUE PROJECTION FOR 5YEARS

1st yr

2nd yr

3rd yr

4th yr

5th yr

Unit
selling
Prices

1st yr

2nd yr

3rd yr

4th yr

5yr

612,000,000

648,000,000

684,000.000

684,000,000

684,000,000

1.22

746,640.00

790,560.00

834,480.00

834,480.00

834,480

2. Alphonso Mango
Juice in standard
and slim containers

612,000,000

648,000,000

684,000,000

684,000,000

684,000,000

1.13

691,560.00

732,240.00

772,920.00

772,920.00

772,920

3. Pineaple Juice in
Standard and slim
container

612,648,000

648,000,000

684,000,000

684,000,000

684,000,000

1.25

765,000.00

810,000.00

855,000.00

855,000.00

855,000

4. Pearl Apple Juice

in Standard and
slim container

612,000,000

648,000,000

684,000,000

684,000,000

684,000,000

1.25

765,000.00

810,000.00

855,000.00

855,000.00

855,000

5. Gauava Pulp
Fruit Juice in
Standard and slim
container

612,000,000

648,000,000

684,000,000

684,000,0000

684,000,000

1.13

691,560.00

732,240.00

772,920.00

772,920.00

772,920

6. Pawpaw Pulp
Juice in Standard
and slim container

612,000,000

648,000,000

684,000,000

684,000,000

684,000,000

1.13

691,560.00

732,240.00

772,920.00

772,920.00

772,920

16,000,000

17,000,000

18,000.000

18,000,000

18,000.000

0.44

7,040.00

7,480.00

7,920.00

7,920.00

7,920.00

800,000,000

920,000,000

1,104,000,000

1,324,800,000

1,324,800,000

0.125

100,000.00

115,000.00

138,000.00

165,000.00

165,000

4,458,360.00

4,729,760.00

5,009,160.00

5,036,760.00

5,036,76

Description of
Products for sale
1. Orange Juice in
1liter standard
container

7. Crystal Pure
Water in 75cl Bottle
8. Tomato paste
70grams pack

Total

Part IV
Financial Study
A.
Total Project Cost & Financing Arrangement.
Particulars
Existing
1. Factory Buildings & facilities
2. Machinery, Plant and Equipment
3. Furniture, Fitting& Office Equip
4. Utilities
5. Tractor & Forklift(caterpillar)
6. Vehicle
7. Pre-operational Expenses
8. Working Capital
9. Contingencies
Total Capital Cost
Possible Funding Arrangement
Equity contribution
Medium Term Loan

$ 000

918.75
-----------------------------------918.75
2,000.00
----------2,918.75

Proposed &
Offshore
7112.50
40,235.30
3,000.00
--------237.50
1,350.00
51,935.30
--------28,064.70
---------80,000.00

2,918.75
---------

--------80,000.00

Dollar Equivalence of Proposed for

Offshore Proposal
Local
1,138,000.00
----6,437,648.00
-----480,000.00
1,000.00
----------500.00
38,000.00
-----216,000.00
------8,309,648.00
1,500.00
-------500.00
---------------------11.25
8,309,648.00
2,011.25
----------8,309,648.00

2,011.25

Total
8,031.25
40,235.30
4,000.00
500.00
237.50
1,350.00
54,354.05
2,500.00
28,064.00
11.25
84,930.00
4,930.00
80,000.00

III

FACTORY AND ADMINISTRATIVE OVERHEAD PROJECTION

Items

Yr 1

Electricity
Water
Fuel and Lubricants
Transport and Traveling
Medical Expenses
Sales Promotion & Advert.
Administrative expenses
Telephone / Computer
Credit and Legal fees
Stationery and Printing
Contingencies
Total

IV

$ 000

Yr 2

Yr 3

17.875
11.50
25.00
20.00
25.00
135.00
30.00
50.00
30.00
10.00
10.00

17.875
11.50
25.00
20.00
25.00
135.00
30.00
50.00
30.00
10.00
10.00

25.00
12.00
31.25
30.00
25.00
140.00
35.00
60.00
30.00
10.00
15.00

25.00
12.00
31.25
30.00
25.00
140.00
35.00
60.00
30.00
15.00
15.00

25.00
12.00
31.25
30.00
25.00
140.00
35.00
60.00
30.00
15.00
15.00

364.37

364.37

413.25

418.25

418.25

INSURANCE COMPUTATION
(Fire, theft and comprehensive Policies @ 0.3% 1% and 3% respectively)

Sr No

Item Insured

Risk Policy Held

1
2
3
4
5
6

Building and facilities

Machines, Plant and Equipment
Furniture, Fittings and Office Equipment
Vehicle (cars (4), Trucks (4) Pickup (10)
Tractor (1) Fork lift (2) Caterpillar
Utilities.

Fire
Fire
Fire and Theft
Comprehensive @ 3%
Comprehensive @ 3%

Yr 4

Yr 5

$ 000
Value of item
8031.25
40,235.30
5,000.00
1,350.00
237.50
500.00
50,354.05

Premium payable
24.09
120.00
65.00
40.50
7.12
1.50
258.90

EVALUATION OF DEPRECIATION OF FIXED ASSETS PROJECTED

Sr
No

Description of Assets

Initial
Value

Annual Rate 1st yr

of
Depreciation

1.
2.
3.
4.
5.
6.

Plant, Machinery & Equipment

Land, Buildings & Facilities
Furniture, Fittings & Office
Utitlities
Forklift, Tractor
Vehicle

4O,235.30
8,031.25
4,000.00
500.00
237.50
1,350.00

5%
5%
5%
15%
15%

Total Depreciation
Cumulative Depreciation

2nd yr

3rd yr

4th yr

5th yr

2,011.70
200.00
25.00
35.60
202.50

1,911.10
-190.00
23.75
30.20
172.10

1,815.60
--180.50
22.50
25.70
146.30

1,724.80
--171.40
21.40
21.80
124.30

1,638.50
---162.90
20.30
18.50
105.60

2,474.08

2,327.15
4,801.90

2,168.60
6,970.50

2,063.70
9,034.20

1,945.80
10,980.00

C.

MANUFACTURING, TRADING, PROFIT, AND LOSS ACCOUNT PROJECTION

MILLIONS

Years of Operation

Yr1

Yr2

Revenue from Sales

4,458,360.00

4,729,760.00

5,009,160.00

5,036,760.00

5,036,760.00

114,590.00
996.00
54.38
2,474.80

1,182,440.00
1,094.40
54.38
2,327.15

1,252,290.00
1,196.10
68.25
2,168.60

1,259,190.00
1,196.10
68.25
2,063.70

1,259,190.00
1,196.10
68.25
1,945.80

1,118,115.18

1,185,917.93

1,255,722.95

1,262,618.05

1,262,400.15

1,099.05
175.00
135.00
6,400.00
258.90
5,000.00

1,172.40
175.00
135.00
24,800.00
258.90
5,000.00

1,360.90
205.00
140.00
23,200.00
258.90
5,000.00

1,360.90
210.00
140.00
21,600.00
258.90
5,000.00

1,360.90
210.00
140.00
21,600.00
258.90
5,000.00

13,067.95

31,541.30

30,164.80

28,569.80

28,569.80

Production Costs
A Direct Costs
Raw Materials
Wages/Salaries to Production Staff
Utilities/Factory Overhead Expenses
Depreciation
Sub Total
B. Indirect Costs
Directors/Management & Staff Salaries
Administrative & general expenses
Selling expenses-Promotion &advertisement
Amortization and finance charges
Insurance
Incidental Expenses
Sub Total

Yr 3

$ 000
Yr4

Yr5

Total Costs

1,131,183.13

1,217,459.23

1,285,887.75 1,291,187.85

1,289,259.05

Profit before Tax

3,327,176.87

3,512.300.77

3,723,272.25 3,745,572.15

3,747,500.05

Tax @ 40%
Profit after Tax

1,330,870.74
1,996,306.13

1,404,920.30
2,107,380.47

1,489,308.79 1,498,228.86
2,233,963.35 2,247,343.29

1,499,000.38
2,248,500.66

PROJECTED CASH FLOW FOR 5 YEARS

Sources of fund
Generated profit before Tax
Equity Capital
Medium Term Loan
Depreciation
Total
Application of funds
Land, Factory Building & Facilities
Plant, Machinery and Equipment
Furniture, Fittings & Office Equipment
Utilities
Tractor & Forklift (caterpillar)
Vehicle
Pre-Operational Expenses
Working Capital
Contingencies
Sub Total

Year 0

Year 1

Year 2

Year 3

Year 4

Year 5

4,930.00
80,000.00
-

3,327,176.87
2,474.80

3,512,300.77
2,327.15

3,723,272.25
2,168.60

3,745,572.15
2,063.70

3,747,500.95
1,045.80

84,930.00

3,329,651.67

3,514,627.92

3,725,440.85

3,747,635.85

3,749,446.75

8,031.25
40,235.30
4,000.00
500.00
237.50
1,350.00
2,500.00
28,064.70
11.25

1,000.00
30,000.00
-

5,000.00
500.00
2,000.00
35,000.00

10,000.00
500.00
40,000.00
-

5,000.00
1,000.00
40,000.00
-

10,000.00
40,000.00
-

84,930.00

31,000.00

42,500.00

50,500.00

46,000.00

50,000.00

Application of Surplus Fund

Tax
Dividend (10% of Total Sales)

1,330,870.74
--

1404,920.30
445,836. 00

1,489,308.90
472,976.00

1,498228.86
500,916.00

1,499,000.38
503,676.00

Sub Total

1,330,870.74

1,850,756.30

1,962,284.90

1,999,144.86

2,002,676.38

1,361,870.74

1,893,256.30

2,012,784.90

2,045,144.86

2,052,676.38

Total Application

84,930.00

Cash Surplus

1,967,780.93

1,621,371.62

1,712,655.95

1,702,490.99

1,696,770.37

Cumulative Cash Surplus

-WWW

3,589,152.55

5,301,808.50

7,004,299.49

8,701,069.86

BALANCE SHEET PROJECTION AT THE END OF EACH FINANCIAL YEAR $000.

Yr 0

Yr 1

Yr 2

Yr 3

Yr 4

Yr 5

Total Fixed Assets

Less cumulative Depreciation
Net Fixed Assets
Pre-Operational Expenses

54,354.05
54,354.05
2,500.00

54,354.05
2,474.80
51,879.25
-

54,354.05
4,801. 90
49,552.10
-

54,354.05
6,970.50
47,383.50

54,354.05
9,034.20
45,319.80

54,354.05
10,980.00
43,374.00
-

Sub Total
Current Assets
Stock of Material inputs(in Farms)
Stock of Finished Products Estimated
@ 1% of output

Debtors short-term @ 10% of

output

Cash & Bank Balances.

56,854.05

51,879.25

49,552.10

47,383.50

45,319.80

43,374.00

30,000.00
44,583.60
445,836.00

35,000.00
47,297.60
472,976.00

28,075.95

2,806,757.27

Total Current Assets

Total Assets
Represented By:
Equity Share Capital
Retained Earnings
Medium Term Loan
Current Liabilities

Taxation

Proposed Dividend
Total Liabilities

40,000.00
50,091.60
500,916.00

40,000.00
50,367.60
503,676.00

40,000.00
50,367.60
503,676.00

2,957,027.17

3,132,264.69

3,151,528.55

3,153,457.35

84,930.00

3,327,176.87
3,379,056.12

3,512,300.77
3,561,852.87

3,723,272.25
3,770,655.75

3,745,572.15
3,790,891.95

3,747,500.95
3,790,874.95

4,930.00
80,000.00

4,930.00
1,963,255.38
80,000.00

4,930.00
1,651,096.57
60,000.00

4,930.00
1,763,440.85
40,000.00

4,930.00
1,766,817.12
20,000.00

4,930.00
1,763,268.57
20,000.00

1,330,870.74

1,404,920.30
445,836.00

1,489,308.90
1,472,976.00

1,498,228.86
500,916.00

1,499,000.38
503,676.00

1,330,870.74
3,379,056.12

1,850,756.30
3,561,852.87

1,962,284.90
3,770,655.75

1,999,144.86
3,790,891.95

2,002,676.38
3,790,874.95

84,930.00

Part

Year of
Operation

Principal (P) Paid

Outstanding Principal

Interest on Outstanding
Principal @ 8% p.a

Total Payable (P=I)

1
2
3
4
5

moratorium
20,000.00
20,000.00
20,000.00
20,000.00

80,000.00
60,000.00
40,000.00
20,000.00
-

6,400.00
4,800.00
3,200.00
1,600.00
1,600.00

6,400.00
24,800.00
23,200.00
21,600.00
21,600.00

17,600.00

97,000.00

80,000.00
B. Medium Term Loan and Amortization Plan of $80million

000
A total sum of $80,000,000.00 (Eighty million US dollars) is proposed for a medium- term loan offshore Nigeria for a total period of 5
years. The first year is sought as a period of moratorium in which only the interest due will be paid while the sum of $80million
dollars will be paid in four equal annual installment of $20,000,000.00(Twenty million US dollars) plus the interest due

PROJECTED PROFITABILITY, ACTIVITY AND LIQUIDITY RATIO ANALYSIS FOR 5 YEARS.

Yr 1

Yr 2

Yr 3

Yr 4

Yr 5

2.5

1.89

1.89

1.89

1.89

44.70%

44.50%

44.59%

44.61%

44.64%

74.62%

74.25%

74.32%

74.36%

74.40%

17.5

13.1

8.76

4.38

4.38

59.07%

59.16%

59.24%

59.28%

59.31%

6. Debt Service Coverage Ratio =

520.87

732.7

1,164.5

2,341.9

2,343.18

Profit before interest & Tax.

Interest Charge.

Times

Times

Times

Times

Times

1. Liquidity Ratio = Current Assets

Current Liabilities

2. Return of Sales =

Profit after Tax

X 100
Total Sales
3. Gross Operating Margin = Profit before Tax
Total Sales
4. Debt Equity Ration =

Debts
Equity

5. Return on Investment = Return on Assets

Profit after tax
Total Asset

X 100

X 100