Chemical and Construction Input Industry Development Institute. Project Profile on the Establishment of Marble. Processing Plant

Transcription

1 Chemical and Construction Input Industry Development Institute Project Profile on the Establishment of Marble Processing Plant Information Technology and Technical Service Directorate June 2008 E.C Addis Ababa

2 Table of Contents 1. Executive Summary Product Description and Application Market Study, Plant Capacity and Production Program Market Study Present Demand and Supply Projected Demand Pricing and Distribution Plant Capacity Production Program Raw Materials and Utilities Availability and Source of Raw Materials Annual Requirement and Cost of Utilities Location and Site Technology and Engineering Production Process Machinery and Equipment Civil Engineering Cost Human Resource and Training Requirement Human Resource Training Requirement Financial Analysis Underlying Assumption Investment Production Costs Financial Evaluation Economic and Social Benefit and Justification ANNEXES... 21

3 1. Executive Summary [ This project profile deals with the establishment of marble processing plant. The objective of the project profile is primarily to assist potential entrepreneurs in project identification for investment. The document/study covers various aspects of project concept development, start-up, and production and finance. [ Demand projection divulges that the domestic demand for marble is increasing with time. Accordingly, the planned plant is set to produce 6,500 square meters annually. The total investment cost of the project including working capital is estimated at Birr 3.92 million and creates 30 jobs and Birr 329,040 of income The financial result indicates that the project will generate profit beginning from the first year of operation. Moreover, the project will break even at 35.8% of capacity utilization and it will payback fully the initial investment less working capital in 3 years. The result further shows that the calculated IRR of the project is 23.8% and NPV discounted at 18% is Birr 857, In addition to this, the proposed project possesses wide range of economic and social benefits such as increasing the level of investment, tax revenue, and employment creation. Generally the project is technically feasible, financially and commercially viable as well as socially and economically acceptable. Hence the project is worth implementing. 2. Product Description and Application Marble is a crystalline, compact variety of metamorphosed limestone, consisting primarily of calcite, dolomite or a combination of both minerals. Pure calcite is white, but mineral impurities add colour in variegated patterns. Commercially the term marble is extended to include any rock composed of calcium carbonate that takes polish including ordinary limestone. Marble is a durable stone in dry atmosphere only when protected from rain. The surface of marble crumbles readily when exposed to moist or acidic 1

4 environment. Purest form of marble is statuary marble, which is white with visible crystalline structure. The distinctive lustre of statuary marble is caused by the reflection of penetrated light from the surfaces of inner crystals. Marble is gaining popularity in the major urban places of Ethiopia at large due to increase in its usage in construction industry. Today many of the modern architectural designs of houses and high rise buildings include the final touch of beautiful shades of marble in exterior as well as interior portions. This trend is witnessed by the increase in supply of the product from local production and import. Moreover, marble is also demanded for funeral trade, sculptures etc. 3. Market Study, Plant Capacity and Production Program 3.1 Market Study Present Demand and Supply The boom being witnessed in the construction industry and the sustainable increase in the GDP of the country has increased the demand for marble products. The major suppliers of the product are those firms located in Tigray, Addis Ababa and Awash. However, as some studies show there is gap between demand and supply where buyers are forced to wait months to get marble from the factories due to limitation in production capacity. This indicates that demand is not being met on time due to production limitation. Table 1 presents the level of demand comprised of domestic production and import. 2

5 Table 1: Domestic Production and Import of Finished Marble Year Domestic Production in M 2 ) Domestic Production(@100%, in M 2 ) Source: CSA and Customs Authority, (various yeas) Import (in KG) Import (in M 2 ) Total Consumption (in M 2 ) 1997/98 93, ,090 9, , , /99 152, ,682 76,021 6,841,890 6,994, /00 135, ,050 82,503 7,425,270 7,561, /01 114, ,018 37,976 3,417,840 3,532, /02 209, ,764 56,895 5,120,550 5,330, /03 128, ,702 55,582 5,002,380 5,131, /04 344, , ,665 12,029,850 12,374, /05 161, , ,661 21,029,490 21,190, /06 200, , ,558 39,200,220 39,400, /07 224, ,348 1,013,879 91,249,110 91,473, /8 264, ,447 1,297, ,798, ,063, /9 114, ,249 1,661, ,502, ,616, /10 152, ,905 2,787, ,902, ,055, /11 143, ,584 1,662, ,620, ,764, /12 128, , , ,480,348 86,609, /13 344, , ,112, ,088, ,432, /14 161, , ,588, ,972, ,133,209 The import data is reported in kg while local production is documented in square meters. Thus, due to aggregation problem of the two figures, a conversion factor of 90kg/m2 is used as representative figure for further analysis. Accordingly, the table reveals the presence of growing demand for the product especially for the last five years where the construction industry showed an astonishing growth throughout the country. That is, between 2003/04 up to 2006/07, consumption for marble has been on average

6 million m2. This demand is expected to expand as the construction industry continues to expand for the coming decades PRESENT EFFECTIVE LOCAL DEMAND FOR MARBLE There are two main approaches for estimating the demand for a product. Either the estimate of future value is based on an analysis of factors which are believed to influence future values, the explanatory or end - use method, or else the prediction is based on an inferred study of the behavior of historical supply data and trend over time - the extrapolation method. Both approaches can produce realistic forecasts, but the former method is often more difficult to implement and validate than the latter approach, due to lack of data at the required level. The extrapolation method does not take into consideration the underlining factors that affect the demand for a product. Instead, in order to infer about its future behavior and trends, past behaviors and trends on time series supply data are scrutinized. Accordingly, in order to estimate the current effective demand for marble in Ethiopia, the following methods were applied: - Double exponential smoothing (one parameter); - Holte s one - parameter double exponential smoothing; and - Time trend extrapolation. Each method used to estimate the current effective demand is discussed briefly as follows. a) Double Exponential Smoothing (One Parameter) The double exponential smoothing analysis predicts a value based on the forecast for the single exponential smoothing, adjusted for the error in that prior forecast. Double exponential smoothing technique involves the following equation: S t = αx t + (1-α) S t-1 S t = α S t + (1-α) S t-1 F t+m = a t + b tm 4

7 Where, S t is the single exponential smoothed value, S t is the double exponential smoothed value, F t+m = a t + b tm is the forecasted value one time ahead, a t = S t + (S t - S t ), b t = (α/1- α) (S t - S t ) m is the number of periods ahead to be forecast X t actual ton at time t and α is the smoothing constant having a value of 0.2. Using Zaitun Time Series software, the following Model Summary is found. The current effective demand estimated based on the above equation is shown in Table 2. 5

8 Table 2 ESTIMATED PRESENT DEMAND BASED ON DOUBLE EXPONENTIAL SMOOTHING METHOD Total Consumption Year (Square Meter) ,907, ,554, ,201, ,848, ,495, ,142, ,789, ,435, ,082, ,729,924.0 As can be observed from the figure, the projected effective demand of marble will reach to billion square meters in 2014 from around billion square meters in B) Time Trend Extrapolation The principle of least squares is employed to fit a linear trend to the historical data of supply (y) and time (t) and the relation is expressed by the following equation: Y = α + bt, Where a is the intercept and b is the slope. Accordingly, using Zaitun Time Series Software, the estimated linear Model becomes as shown below. 6

9 Yt = E E+07*t Accordingly, applying the above equitation the present effective demand for marble based on time trend extrapolation method is given in Table 3. Table 3 ESTIMATED PRESENT DEMAND BASED ON TIME TREND EXTRAPOLATION METHOD Year Total Consumption (m 2 ) ,619, ,122, ,625, ,128, ,631, ,134, ,637, ,140, ,643, ,146,

10 As can be observed from the figure, the projected effective demand of marble will reach to and billion square meters in 2014 and 2023 respectively. C) Evaluation of the Methods Used to Estimate the Present Demand The result of the various methods used to estimate the present demand is summarized in Table 4. Table 4 SUMMARY OF ESTIMATED PRESENT DEMAND Estimated Present Method Demand 2023 Double Exponential Smoothing(one parameter) 271,729,924.0 Time Trend Extrapolation 277,146,076.9 In order to assure the appropriateness of the method used to estimate current effective local demand for marble, the significance of the methods used for short-term forecasting was evaluated by using different test statistics (See Table 5). Table 5 SUMMARY OF TEST STATISTICS Methods MSE MAPE Double Exponential 2,604,136,185,022, Time trend extrapolation 527,161,120,534, MSE = mean squared error MAPE (M) = Mean Absolute Percentage Error 8

11 Where A t / Yi is the actual value and F t is the forecast value The test statistics in Table 3 shows that MSE AND MAPE of the historical data is smaller than the forecasts using double exponential smoothing. Though, the adjusted r 2 value for time trend extrapolation which is around 0.99 is adequately near to 1; linear time trend extrapolation method is an acceptable estimate the present effective demand for marble. Accordingly, the present (2023) effective local demand for marble is estimated at 0.28 billion square meters. D) DEMAND-SPPLY GAP Table 6 PROJECTED LOCAL PRODUCTION AND DEMAND FOR MARBLE THE SUPPLY DEMAND GAP (in Square meter) Year Projected local Capacity Demand Supply Gap Total Projected Existing New ,619, , ,412, ,122, ,101 49, ,865, ,625, ,101 61, ,356, ,128, ,101 76, ,845, ,631, ,101 94, ,329, ,134, , , ,809, ,637, , , ,284, ,140, , , ,752, ,643, , , ,212, ,146, , , ,661,

12 3.1.3 Projected Demand The analysis made above shows the presence of promising future for marble product. In projecting the demand for marble product a conservative growth rate of 5% is considered when the construction sector is growing at about 10% in the economy. Accordingly, the following demand is forecasted for the years ahead. 10

13 Table 7: Projected Demand for Finished Marble Year Projected Demand (in M 2 ) 2007/08 235, /09 247, /10 259, /11 272, /12 286, /13 300, /14 315, /15 331, /16 348, /17 365, /18 383, /19 403,093 Based on the conservative approach, demand for marble increases substantially. Such an increase in demand must be matched by an increase in supply and here lies the importance of the envisaged plant Pricing and Distribution According to CSA (various years) report on medium and large scale manufacturing, the producers price in the years 2008/9 to 2010/11 has been in the range of Birr 324 up to 400 per meter square. Based on the market research result and the capacity of the envisaged plant, the selling price of finished marble has been estimated at Birr 350 per square meter. The available network shall be used by the envisaged plant. 3.2 Plant Capacity In view of the expected demand for the good as presented earlier, and the planned technology, the envisaged plant is set to produce 6,500 m 2 of finished marble annually. Assuming that the plant starts operation in 2009/10, the proposed capacity of the plant is about 2.5% of the forecasted demand for that year. 11

14 3.3 Production Program The program is scheduled based on the consideration that the envisaged plant will work 275 days in a year, where the remaining days will be holidays and maintenance period. During the first year of operation the plant will operate at 70 percent capacity which grows to 85 percent in the 2 nd year. The capacity will grow to 100 percent starting from the 3 rd year. This consideration is developed based on the assumption that market and logistics barriers would take place for the first two years of operation. 4. Raw Materials and Utilities 4.1 Availability and Source of Raw Materials The main row material, which is the marble rock, is adequately available in SNNP, Oromiya and Amhara regions. 4.2 Annual Requirement and Cost of Utilities The raw marble will be obtained from the leased site. Nonetheless, the plant requires electricity and furnace for the machineries and water for cutting of stones. Table 3 states the cost associated with these utilities Utility Table 8: Utility Requirement and Cost Quantity Electricity kwh 178,750 Furnace Oil 5500 lit 38,500 Water 55,000 m 3 145,750 Total Utility Cost 363,000 Total Cost L.C. F.C. The annual utility requirement and the associated cost for the envisaged plant is estimated at Birr 363 thousand. The plant shall make arrangements for sufficient water using storage and recycling of a portion of water used so as to reduce water losses. 12

15 5 Location and Site The marble processing industry has high rate of wastages (i.e. almost 45%). Although the wastages may be reduced if standardized raw material (Square blocks) is provided to the industry, the establishment of the unit should be in the mining vicinity so as to benefit from reduced transport cost of wastage. At the same time, the location plays an important role, as the facility should easily be accessible to the target customers. Thus, the appropriate locations for the envisaged project in view of the availability of input, infrastructure as well as market for the output are the towns near the source of the marble deposit. 6 Technology and Engineering 6.1 Production Process Processing of marble is simple and involves two basic types A) Gang saw cutting: This is used at the basic processing stage to cut raw block into slabs of different predefined sizes. B) Block cutter with supporting range of cutters and polishers to produce finished marble. The alternative technological option available involves the production of marble chips. Marble Chips are tiny pieces normally of crushed marble used in flooring and facing in the construction industry. They vary in size from large grains of 1 inch to 0.5 centimeter; depending on the choice of the consumer. Marble chips are processed on completely different machinery set up that includes stone crushers of various grades. This alternative technology is not adopted by the envisaged plant since the demand for marble chips is not as significant as the marble stones (for slabs, tiles etc). 13

16 6.2 Machinery and Equipment The machineries and equipment required for producing marble are listed in table 9 below. Table 9: Machinery and Equipment Machinery and Equipment Quantity Gantry Crane 1 Gang Saw (80-blades, double connecting rods) 1 H/V Cutter (conventional two pillar, regular) 1 Small Cutting Machine (for Splitting / section and Slab cutting) 2 Cross Cutting Machine 1 Polishing Machine (manual) 1 Water pump machine 1 Water Tank (10,000 lit) 2 The total cost of machinery and equipment including freight insurance and bank cost is estimated to be about Birr 2.1 million. The following are some of the machineries suppliers address for the envisaged project. Anumita Enterprises Sohan Sadan,Udaipur-.Rajasthan, India Avon Industrial Cutters W-23, Okhla Phase-ii,,New Delhi Delhi, India 6.3 Civil Engineering Cost The total site area for the envisaged plant is estimated to be 1,500m 2 where 300m 2 is allocated for the production place shed, office and facilities. 7 Human Resource and Training Requirement 7.1 Human Resource The list of required manpower for the envisaged plant is providedin table 10 below. 14

17 Position Table 10: Human Resource Requirement No. Required Monthly Salary Total Annual Salary Manager Accountant Secretary Sales Clerk Store Keeper Mechanic Electrician Gang Saw Operator H/V cutter Operator Small Cutter Operators Daily Laborers Cleaners Messengers Driver Guards Benefit (20%) Total The envisaged plant, therefore, creates 30 jobs and about Birr 329,040 of income. The professionals and support staff for the envisaged plant shall be recruited from Amhara region. 7.2 Training Requirement Training of key personnel will be arranged in one of the existing plants in the country. The training should primarily focus on the production technology and machinery maintenance and trouble shooting. Birr 20,000 will be allocated for training expense. 15

18 8 Financial Analysis 8.1 Underlying Assumption The financial analysis of marble processing plant is based on the data provided in the preceding sections and the following assumptions. A. Construction and Finance Construction period Source of finance Tax holidays 2 years 40% equity and 60% loan 2 years Bank interest rate 12% Discount for cash flow 18% Value of land Spare Parts, Repair & Maintenance Based on land rent rate of ANRS 3% of fixed investment B. Depreciation Building 5% Machinery and equipment 10% Office furniture 10% Vehicles 20% Pre-production (amortization) 20% 16

19 [ C. Working Capital (Minimum Days of Coverage) 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 Investment The total investment cost of the project including working capital is estimated at Birr 3.92 million as shown in table 11 below. The Owner shall contribute 40% of the finance in the form of equity while the remaining 60% is to be financed by bank loan. Table 11: Total initial investment Items L.C F.C Total Land 4,500 4,500 Building and civil works 600, ,000 Office equipment 50,000 50,000 Vehicles 800, ,000 Plant machinery & equipment 100,000 2,000,000 2,100,000 Total fixed investment cost 1,554,500 2,000,000 3,554,500 Pre production capital expenditure* 177, ,725 Total initial investment 1,732,225 2,000,000 3,732,225 Working capital at full capacity 189, ,871 Total 1,922,096 2,000,000 3,922,096 *Pre-production capital expenditure includes - all expenses for pre-investment studies, consultancy fee during construction and expenses for company s establishment, project administration expenses, commission expenses, preproduction marketing and interest expenses during construction. The foreign component of the project accounts about 51% of the total investment cost. 17

20 8.3 Production Costs The total production cost at full capacity operation is estimated at Birr 1.47 million as detailed in table 7 below. 1. Raw materials Items Table 12: Production Cost Cost 2. Utilities 363, Wages and Salaries 329, Spares and Maintenance 106,635 Factory costs 798, Depreciation 440, Financial costs 235,326 Total Production Cost 1,474, Financial Evaluation I. Profitability According to the projected income statement attached in the annex part (see annex 4) the project will generate profit beginning from the second year of operation. Ratios such as the percentage of net profit to total sales, return on equity and return on total investment are 30%, 37% and 22% respectively in the second year and are gradually rising. Furthermore, the income statement and other profitability indicators show that the project is viable. II. Breakeven Analysis The breakeven point of the project is estimated by using income statement projection. Accordingly, the project will break even at 35.8% of capacity utilization. 18

21 III. Payback Period Investment cost and income statement projection are used in estimating the project payback period. The projects will payback fully the initial investment less working capital in 3 years and 4 months. IV. Simple Rate of Return For the envisaged plant the simple rate of return equals to 19.4%. V. Internal Rate of Return and Net Present Value Based on cash flow statement described in the annex part, the calculated IRR of the project is 23.8% and the net present value at 18 % discount is Birr 857, VI. Sensitivity Analysis The envisaged plant will earns profit starting from the second year when 10 % cost increment takes place in the sector. The plant s payback period in such situation is 3 years and 4 months. 9 Economic and Social Benefit and Justification The envisaged project possesses wide range of benefits and it promotes the socioeconomic goals and objectives stated in the strategic plan of the Amhara National Regional State. It plays positive role in diversifying the economic activity by improving the industrial sector that make use of the natural resources of the region. The other major benefits are listed as follows: A. Profit Generation The project is found to be financially viable and will earns Birr 6.42 million during the project life. Such result induces the project promoters to reinvest the profit which, therefore, increases the investment magnitude in the region. 19

22 B. Tax Revenue In the project life under consideration, the region will collect about Birr 3.15 million from corporate tax payment alone (i.e. excluding income tax, sales tax and VAT). Such result creates additional fund for the regional government that will be used in expanding social and other basic services in the region C. Employment and Income Generation The proposed project is expected to create employment opportunity for several citizens of the region. That is, it will provide permanent employment to 30 professionals as well as support staff. Consequently the project creates income of Birr 329,040 per year. This would be one of the commendable accomplishments of the project. D. Pro Environment Project The proposed production process is environment friendly. E. Diversification and InterSectoral linkage. The proposed project helps to diversify ANRS and Ethiopian economy. It contributes to industrialization of the region as well as the county s economy. 20

23 ANNEXES 21

24 Annex 1: Total Net Working Capital Requirements (in Birr) CONSTRUCTION PRODUCTION Year 1 Year Capacity Utilization (%) % 85% 100% 100% 1. Total Inventory Raw Materials in Stock- Total Raw Material-Local Raw Material-Foreign Factory Supplies in Stock Spare Parts in Stock and Maintenance Work in Progress Finished Products Accounts Receivable Cash in Hand CURRENT ASSETS Current Liabilities Accounts Payable TOTAL NET WORKING CAPITAL REQUIRMENTS INCREASE IN NET WORKING CAPITAL

25 Annex 1: Total Net Working Capital Requirements (in Birr) (continued) PRODUCTION Capacity Utilization (%) 100% 100% 100% 100% 100% 100% 1. Total Inventory Raw Materials in Stock-Total Raw Material-Local Raw Material-Foreign Factory Supplies in Stock Spare Parts in Stock and Maintenance Work in Progress Finished Products Accounts Receivable Cash in Hand CURRENT ASSETS Current Liabilities Accounts Payable TOTAL NET WORKING CAPITAL REQUIRMENTS INCREASE IN NET WORKING CAPITAL

26 Annex 2: Cash Flow Statement (in Birr) CONSTRUCTION PRODUCTION Year 1 Year TOTAL CASH INFLOW Inflow Funds Total Equity Total Long Term Loan Total Short Term Finances Inflow Operation Sales Revenue Interest on Securities Other Income TOTAL CASH OUTFLOW Increase In Fixed Assets Fixed Investments Pre-production Expenditures Increase in Current Assets Operating Costs Corporate Tax Paid Interest Paid Loan Repayments Dividends Paid Surplus(Deficit) Cumulative Cash Balance

27 Annex 2: Cash Flow Statement (in Birr): Continued PRODUCTION TOTAL CASH INFLOW Inflow Funds Total Equity Total Long Term Loan Total Short Term Finances Inflow Operation Sales Revenue Interest on Securities Other Income TOTAL CASH OUTFLOW Increase In Fixed Assets Fixed Investments Pre-production Expenditures Increase in Current Assets Operating Costs Corporate Tax Paid Interest Paid Loan Repayments Dividends Paid Surplus(Deficit) Cumulative Cash Balance

28 Annex 3: DISCOUNTED CASH FLOW-TOTAL CAPITAL INVESTED CONSTRUCTION PRODUCTION Year 1 Year TOTAL CASH INFLOW Inflow Operation Sales Revenue Interest on Securities Other Income TOTAL CASH OUTFLOW Increase in Fixed Assets Fixed Investments Pre-production Expenditures Increase in Net Working Capital Operating Costs Corporate Tax Paid NET CASH FLOW CUMMULATIVE NET CASH FLOW Net Present Value (at 18%) Cumulative Net present Value

29 Annex 3: DISCOUNTED CASH FLOW-TOTAL CAPITAL INVESTED (Continued) PRODUCTION TOTAL CASH INFLOW Inflow Operation Sales Revenue Interest on Securities Other Income TOTAL CASH OUTFLOW Increase in Fixed Assets Fixed Investments Pre-production Expenditures Increase in Net Working Capital Operating Costs Corporate Tax Paid NET CASH FLOW CUMMULATIVE NET CASH FLOW Net Present Value (at 18%) Cumulative Net present Value Net Present Value (at 18%) 857, Internal Rate of Return 23.8% 6

30 Annex 4: NET INCOME STATEMENT ( in Birr) PRODUCTION Capacity Utilization (%) 70% 85% 100% 100% 100% 1. Total Income Sales Revenue Other Income Less Variable Cost VARIABLE MARGIN (In % of Total Income) Less Fixed Costs OPERATIONAL MARGIN (In % of Total Income) Less Cost of Finance GROSS PROFIT Income (Corporate) Tax NET PROFIT RATIOS (%) Gross Profit/Sales -1% 30% 38% 40% 42% Net Profit After Tax/Sales -1% 30% 24% 26% 27% Return on Investment 16% 22% 20% 20% 19% Return on Equity -1% 37% 36% 37% 39% 7

31 Annex 4: NET INCOME STATEMENT (in Birr):Continued PRODUCTION Capacity Utilization (%) 100% 100% 100% 100% 100% 1. Total Income Sales Revenue Other Income Less Variable Cost VARIABLE MARGIN (In % of Total Income) Less Fixed Costs OPERATIONAL MARGIN (In % of Total Income) Less Cost of Finance GROSS PROFIT Income (Corporate) Tax NET PROFIT RATIOS (%) Gross Profit/Sales 52% 55% 57% 57% 57% Net Profit After Tax/Sales 34% 35% 37% 37% 37% Return on Investment 22% 22% 21% 21% 21% Return on Equity 49% 51% 53% 53% 53% 8

32 Annex 5: Projected Balance Sheet (in Birr) CONSTRUCTION PRODUCTION Year 1 Year TOTAL ASSETS Total Current Assets Inventory on Materials and Supplies Work in Progress Finished Products in Stock Accounts Receivable Cash in Hand Cash Surplus, Finance Available Securities Total Fixed Assets, Net of Depreciation Fixed Investment Construction in Progress Pre-Production Expenditure Less Accumulated Depreciation Accumulated Losses Brought Forward Loss in Current Year TOTAL LIABILITIES Total Current Liabilities Accounts Payable Bank Overdraft Total Long-term Debt Loan A Loan B Total Equity Capital Ordinary Capital Preference Capital Subsidies Reserves, Retained Profits Brought Forward Net Profit After Tax Dividends Payable Retained Profits

33 Annex 5: Projected Balance Sheet (in Birr): Continued PRODUCTION TOTAL ASSETS Total Current Assets Inventory on Materials and Supplies Work in Progress Finished Products in Stock Accounts Receivable Cash in Hand Cash Surplus, Finance Available Securities Total Fixed Assets, Net of Depreciation Fixed Investment Construction in Progress Pre-Production Expenditure Less Accumulated Depreciation Accumulated Losses Brought Forward Loss in Current Year TOTAL LIABILITIES Total Current Liabilities Accounts Payable Bank Overdraft Total Long-term Debt Loan A Loan B Total Equity Capital Ordinary Capital Preference Capital Subsidies Reserves, Retained Profits Brought Forward Net Profit After Tax Dividends Payable Retained Profits