Development Bank of Ethiopia
New and Expansion SMEs Project Appraisal Report Format
I. Executive Summary
1.1 Name of the Project:
1.2. Objective of the Project:
1.3. Purpose of the Lease Financing:
1.4. Status of the Project
New
Expansion
1.5. Marketing Strategy of the Project
1.6. Appropriateness of production area and shade
1.7. Management Capacity
1.8. The Project's Investment
Amount Percentage
Capital Goods—
Working Capital---
Total
1.9. Source of Finance
Amount D/E Ratio
Debt -
Equity –
1.10 Expected Financial Results
Description Year (initial) Year (final)
Sales Revenue
Profit (Loss)
Cumulative Cash Balance
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II. Background Information
2.1. The Applicant
Name
Address
Form of Organization:-
Legal form of Business:-
Licensing Agency:-
License Number:-
Registration Agency:-
Registration Number:-
Date Registered:-
TIN No:-
VAT No
Marital Status
Type of project:-
Project Objective
2.2. Brief History of the Promoter/Project
2.3. Capital Structure of the Promoter/Project
2.4. Past Performance of the Project (if expansion)
Summary of Operational Performance
Summary of Financial Performance
2.5. Credit Information
Borrower Credit History
2.6 The Lease
A/ Lease amount requested:-
Amount
Purpose
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B/ Lease amount Proposed:-
Amount
Purpose
Variation:
Reason for Variation:
III. Key Success and Risk Factors
3.1 Key Success factors
Firm Level Success Factors
Character
Capacity
Competence
Capital
Collateral
3.2 Risk Factors
Firm level risks
3.3 Indicate the risk mitigating measures
3.4 SWOT analysis of the Project
IV. Market and Marketing:
Demand and supply analysis on product(s) of the project;
Market prospects and major marketing areas of the proposed
product(s);
Marketing strategy and arrangements for the products; and
Price analysis for the product(s) of the project.
V. Technical Aspect of the Project:
Location and site;
Availability of utilities;
Availability of inputs/raw materials;
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Machinery and equipment;
Production process and production capacity;
Project implementation plan; and
Environmental impact assessment of the project (request
confirmation letter from concerned government organ as deemed
necessary)
VI. Organization and Management:
a. Organizational structure of the project;
b. Technical capacity of management of project; and
c. Human resource requirement and availability.
VII. Financial analysis
7.1. Breakdown of Investment Requirement
7.2 Source of Finance
7.3 Expected Financial Results
Profit/loss forecast
Cash flow forecast
Balance Sheet Projection
VIII. Socio Economic benefits
IX. Conclusion and Recommendations
9.1. Terms and conditions
a. Terms
- Equity/ disbursement
- Payment
- Principal
- Interest
b. Conditions
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- Insurance
- Current account opening
- Record keeping
- Other conditions
X. Appraised by
Name(s) _________________ Position(s) _____________
Date __________________ Signature(s) ____________
XI. Approved/Rejected by
Name(s) _________________ Position(s) _____________
Date __________________ Signature(s) ____________
Annexes
Basic Assumptions
Capital Goods List (if any)
Profit /Loss Forecast
Cash Flow Forecast
Balance Sheet Forecast
Lease payment Schedule
Depreciation Schedule
Working Capital Determination
Raw Material List (if any)
Lists of human resource requirement
Provisional or audited financial statement for existing Projects
Others, as deemed necessary
