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					                   PROJECT
        For Planting Gerberas Flowers



                     0f




CHAGAI PROMENIA HILL FLORIST (PVT) LTD




           Work – Site Located at
           Kothmale/Nuwara-Eliya

               October 2009




CAPITAL MANAGEMENT SERVICES (PVT) LTD
              (CMSL)
            Financial Consultants
           ___________________________________________________________________________________________

                                                      ____




                                         TABLE OF CONTENTS




                                           Project of Planting
                                           Gerbaras Flowers

                                             HFHJHDSGDG



      Section                                                                                   Page



      01. Introduction                                                                          01

      02. Project Promoters                                                                     03

      03. Project Profile                                                                       06

      05. Financial Evaluation                                                                  08

      06. Statement of Limiting Conditions                                                      09

      07. Conclusions                                                                           10




Capital Management Services (Pvt) Ltd.
Financial Consultants
                                                         Chagai Promenia Hill Florist (Pvt) Limited
                                                         Project for planting of Gerberas Flowers

                                                                                    List of Annexures


         Annexure 1

         Statement of Assumptions for the Manufacturing of Chagai Promenia Hill Florist (Pvt) Limited

         Annexure 2

         The following Schedules are included:

    I.      Estimated Revenue Forecast

   II.      Projected Profit and Loss Accounts

  III.      Projected Balance Sheet

 IV.        Computation on Capital Allowances & Tax

   V.       Forecast Project Cash flow

 VI.        Fixed Assets

VII.        Summary of Key Financial Indicators




Capital Management Services (Pvt) Ltd.
Financial Consultants
                                                       Chagai Promenia Hill Florist (Pvt) Limited
                                                       Project for planting of Gerberas Flowers



                                              Section - 1

                                             Introduction

      1. Background to the Assignment

           Capital Management Services (Pvt) Limited “CMSL” were requested by Mr. W.M
           Muditha Priyankara, Chief Promoter and Managing Partner of M/s Chagai Promenia
           Hill Florist (Pvt) Ltd, to prepare a financial feasibility report for a proposed Planting
           Gerbera Flowers.



      2. Methodology and Approach

           “CMSL” has been involved in discussion with Mr. W.M Muditha Priyankara,
           Managing Director and Miss Buddhika Prabani. Buisness Excutive pertaining to the
           volume of operations and the relevant costs to be included in the financial analysis.



           The report includes the following statements.


           »   Revenue Schedules for the proposed operation.
           »   Projected profit statement for 10 years.
           »   Projected balance sheet for 10 years.
           »   Projected cash flow statements for 10 years.



      The assumptions used in preparing the financial forecasts are set out in the “Statements
      of Assumptions” which has been agreed upon by the company’s management.




                                                   02 -
                                                                  Chagai Promenia Hill Florist (Pvt) Limited
                                                               Project for planting of Gerberas Flowers

Capital Management Services (Pvt) Ltd.
Financial Consultants
                                             SECTION – 3

      Project Profile

      PROFILE OF THE PRESENT BUISNESS
      Presently, carrying a flower nursery named as saubhagya since year 2002 and
      maintained three tunnels of gerbera flowers ,and production are being marketed in
      locally.
      The promoter have been planned to obtain lease of property of the extent of 40 acre from
      land reform commission on lease tern m basis.
         Project Overview
           We have come to known that there are still unfilled market in the flower industry.
           There fore to fill and satisfy the market of Flowers in Foreign countries as well as in
           the local Market. At present only few exporters Have Entered in to the Export Market
           most of the flower planters were been envisaging the quality problem the quality of
           the harvest were not in accordance with the requirement to over come this problem
           we have planned to use method called’ TISSUE CULTUREAL . Consumption of cut
           flowers have shown a sharp increase un the recent past especially in and around the
           big cities where the population has the greatest purchasing power..
           The escalating cost of labor necessary for sowing cutting sorting packaging and
           transport to markets, has high prices of gerbera flowering developed countries. the
           comparatively cheap labor cost in silence combined with the ideal climatic conditions
           make production in sir kanaka highly competitive in international market
           It is vital that gerbera flower project must have arrangements with Importers in
           Middle East countries and Japan to ensure successful marketing of the product the
           quantity to be produced have to be fairly large and the production should be of
           uniform quality size colour,etc in respect of particular variety. in view of this factor
           the arrangements with the method of tissue culturing has been introduced
           .
           Chagai Promenia Hill Florist (Pvt) Limited has been set-up to Plant gerberas flowers
           in higher capacity in first time in Sri Lanka.


           Chagai Promenia Hill (Pvt) Ltd., proposed to Cultivate of Gerbera Flowers for Export
           and Local market.
           A proper distributions and marketing system would enable the company to have
           immediate access to the market and the company will have an edge over the other
           flowers suppliers; which will contribute to the viability of the project. The
           distribution and marketing functions will be carried out through selected distributors
           and they will be selected mainly from the areas of Kandy, Ratnapura. Badulla,
           Matara, Matale, Kegalle and Anuradhapura.


Capital Management Services (Pvt) Ltd.
Financial Consultants
                                                   Chagai Promenia Hill Florist (Pvt) Limited
                                                   Project for planting of Gerberas Flowers




                                           SECTION – 4




           Potential Market

           The company has identified that there is a tremendous potential market of flowers and
           the company has projected to meet the demand for 100,000 flowers in the long term
           per month , But the company’s annual manufacturing capacity could be increased
           10% by maintaining Lab and with the ground preparation over the ten years .It is
           envisaged that a flower will be priced at USD 1.20 and thus the projected turnover
           per annum would be USD 0.40 million during the first year and increased up to USD
           1.3 million during the tenth year
           .


           The market feasibility study and forecast demand were prepared on the most likely
           level of sale as provided by the management.


           The company is capable to manufacture a vast product range; manufactured to suit
           individual applications as follows.


                 Orchids-variety of orchids
                 Hydrangea
                 Roses
                 Chrysanthemum
                 Alstromeria & wedding flowers




Capital Management Services (Pvt) Ltd.
Financial Consultants
                                                   - 04 -




                                                      Chagai Promenia Hill Florist (Pvt) Limited
                                                      Project for planting of Gerberas Flowers


                                              SECTION – 5

                    International Market



                    The major suppliers of gerberas flower are the developing countries and their
                    share of market is increasing considerably over the years at present the
                    flower project in srilanka exporting their products mainly to Asian countries.
                    Flower center-Statistics indicate that sri lanka exporters have become more
                    sophisticated over time ,as reflected by the fact that although the volume of
                    exported, increased over the year ,the value of Export has increased at a much
                    higher ratio. This indicates increase in the Export of high value items, trends
                    in the world market and the potential advantages Sri Lanka has in production.
                    There appears to be a considerable opportunity for a further expansion of the
                    local authority.




      It is pleasure to inform that Chagai Promenia Hill Florist(pvt)Ltd will be entered an
      agreement with the importers in Dubai flower center in the mid of December 2010.


      The quantities to be produced have to fairly large and should be of uniform quality, size
      colour,ect.




                                                      Chagai Promenia Hill Florist (Pvt) Limited
                                                      Project for planting of Gerberas Flowers
Capital Management Services (Pvt) Ltd.
Financial Consultants
                                               SECTION – 6

      PROJECT ENGINEERING


      Project Location

      Gerberas flowers will in the upper country and the mid county region .How ever point of
      productivity. Best result could be expected in locations which are not dry. Gerbers plant
      grow best under day time temperature between 22-26 degrees Celsius.Night temperature
      20-24 degrees Celsius . The relative Ecological Zom in Kothmale – WMZA/WM2B.
      Taking these factors into consideration planned location in kothmale is vary ideal place.


      An extent of 40 acres available for this purpose .and expected use the selected location
      for the project should have a plentiful supply of water round the year. More over the
      quality of water too should satisfy the conditions that the PH . should be between 5.8-6.8
      & Electricity conductivity Red yellow solid.


      It is envisaged to block out the area taking in to consideration the different of varieties to
      be cultivated 10 acre for buildings and rod ways .The open are while the fulfilling by the
      mother plan will be utilized to plant the Australian grass. Project development
      expenditure could be categorized under following headings.


      BED PREPARATION
      PLANTING OF MOHER PLANTS
      PLANTING MATERIAL
      USE OF FERTILIZERS
      IRRIGATION
      SHADE REQUIRMENTS
      -TUNNELS
      CONTROL OF WEEDS PEST AND DISEASE
      HARVESTING
      GRADING AND PACKING
      ORGANIZATION CHART


                                                          Chagai Promenia Hill Florist (Pvt) Limited
                                                         Project for planting of Gerberas Flowers




Capital Management Services (Pvt) Ltd.
Financial Consultants
                                         SECTION – 7

      ECONOMIC IMPACTS,




      When fully operational the proposed project for the manufacture and export of gerberas
      flower would result in increase of national income.




      The implementation of this project would create employment for a total of 275 persons
      of whom are in 240 direct labor      positions while 35 In technical, supervisory and
      management posts.




      From the third year the training opportunities will be provided to the out growers. We
      provide our necessaries to these out growers at a concession rates and will repurchase
      the flowers if the requirements are being fulfilled.




                                               - 05 -




Capital Management Services (Pvt) Ltd.
Financial Consultants
                                                              Chagai Promenia Hill Florist (Pvt) Limited
                                                            Project for planting of Gerberas Flowers
                                                              Chagai Promenia Hill Florist (Pvt) Limited




                                                              Chagai Promenia Hill Florist (Pvt) Limited
                                                            Project for planting of Gerberas Flowers




                                                  Section - 8

                                         Project Costs and Financing


    1.     Project Costs
           The capital investment of the proposed planting operation is estimated to be
           approximately RS                  as detailed below.


            Category                                    Amounting in RS       000               Reference
            Green house and drip irrigation                                    21,000           Annexure I
            system
            Laboratory for Tissue culturing                                     6,500           Annexure I
            Building and Structures
            Plant and Equipment cost                                            1,410           Annexure I
            Motor Vehicles                                                      7,050           Annexure I
            Pre-operational Expenses                                            2,400           Annexure I
            Total                                                              38,360


           » Initial Working Capital

            Category                                        Amounting in RS         000.         Reference
            Initial Working Capital                                            3,625           Annexure 11
            requirements (Excluding Cash)
                                                                                               Annexure 11
            Total                                                              3,625


           The Total Initial Project Cost is as follows;


            Category                                         Amounting in USD
            Initial Capital Expenditure                                       30.760
            Initial Working Capital Requirement                                3,625
            Total                                                             34,385

Capital Management Services (Pvt) Ltd.
Financial Consultants
Capital Management Services (Pvt) Ltd.
Financial Consultants

				
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