Docstoc

View File - Translatorsbase.com

Document Sample
View File - Translatorsbase.com Powered By Docstoc
					                                                                        12

                                                                        14

                                                                        29




     Republic of Côte d’lvoire
               Unity-Discipline-Labour




Eburnean Trading in Coffee / Cocoa
          Limited Liability Company
   With Capital fund of 200, 000, 000.00 CFA Francs




                     March 2010



                                                              Proposal by:

                                               Mr. Brou Nestor ASSOFI
                                                    09 BP 702 Abidjan 09
                                                          Tel: 21 27 04 12
                                        Cell. : 08 74 28 09 / 06 33 62 43 /
                                                               60 31 91 69
                           E-mail assofi2000@yahoo.fr / edene@aviso.ci
                                                            12

                                                            14

                                                            29
                                 TABLE OF CONTENT

INTRODUCTION

Socio-Economic Analysis of the Cocoa/Coffee Trade

      General Information
         1. The Cocoa/Coffee Sector
         2. Legal regime
         3. Government support

Technical Study on the Establishment of the EDENE Company

      Cocoa mass and butter production factory
         1. The project
         2. The company

      Market Study

          1. Activities
             Nature of activities
             Geographic background of the market

          2. Demand and Clientele
             Market Structure
             Qualitative Evolution of the Market
             Nature of the Clientele
             Volume of Demand
             Demand Distribution

          3. Opportunity and Competition
             Opportunity
             Competition
             Identifying Competing Businesses
                                                                       12

                                                                       14

                                                                       29
   Technical and Technological Study

         The Product:

             1. Presentation
             2. Aims of Production
             3. Sales turnover

         Means of Production

             1. Technical Materials
             2. Marketing and Distribution
             3. Business Strategies

   Financial and Economic Study

          Economic Study

             1.   Economic Environment
             2.   Economic Benefits
             3.   Costs and Funding
             4.   Detail
                  - Funding Needs
                  - Provisional Sources of Funding
                  - Investment Budget
                  - Working Capital
                  - Funding Budget

             5. Other Financial Provisions
                - Balance Sheet
                - Cash Budget
                - Depreciations
                - Study of Provisional Operating Account and Outputs
                                                                       12

                                                                       14

                                                                       29
   Study Of Provisional Operating Account and Outputs

      1. Charges

             -    Purchases of Goods
             -    External Supplies
             -    Transport
             -    Other External Services
             -    Losses and Other Charges
             -    Salaries of Personnel
             -    Taxes and Duties
             -    Financial Costs
             -    Depreciations and Provisions

      2. Annual production

             -    Table of Annual Productions

      3. Estimates of Production Account

             -    Table of Provisional Operating Account and Outputs
             -    Table of Operations Outputs

   Financial Study

              -   Financial Provisions
              -   Conclusion
                                                                                              12

                                                                                              14

                                                                                              29
INTRODUCTION

La Côte d’Ivoire is the world’s largest producer of cocoa, with an annual average production of
1.2 million tons of the broad beans, representing 43% of global output – 70% of this volume is
exported to Africa, Europe, America and Asia and 30% is earmarked for processing and
production of by-products in La Côte d’lvoire. We think that the volume of cocoa processed
locally must increase, a view that the current Government of La Côte d’Ivoire shares with us. It
has since recently, revamped the cocoa/coffee – creation of a Trust Fund for trade and the
establishment of regulation for exchange in Cocoa/Coffee.

The Government has also encouraged the construction of several cocoa treatment and packaging
factories. We are certain that it will be same for companies processing the broad beans. There is
political will, but the real need is the good will and know-how of promoters. It is in this sense
that we have considered the eventual creation of a company which will, as its main activity,
manufacture cocoa by-products, namely the mass, butter and cake, and the torrefaction of coffee.

A few years ago an industrialist brought cocoa powder from a neighbouring country which was
used to make breakfast and many were those, especially from Abidjan, who would buy these like
biscuits. It was at this time that the idea of establishing a cocoa processing plant crossed our
minds.

We believe and have the assurance from this observation that the consumer population will
patronize our product and this is demonstrated is the following study.

This was how the EDENE Cocoa/Coffee SARL was established in 2010. It is Ivorian-own,
Limited Liability Company (Llc). Its global vision is to establish a company to treat and process
all agro-industrial products as in EDENE Industries SA, and all mining and energy products as
in EDENE Mines and Energy SA.



EDENE Cocoa/Coffee has as objective, the treatment and packaging of the green coffee and the
cocoa beans, the torrefaction of coffee and the manufacturing of cocoa by-products such as:

       Mass / Powder
       Butter/ Oil
       Cake

Moreover, the following pages show an overview the Company’s structure.

Our ambition is to build two (2) factories with one located at San Pedro for the production of
cocoa butter, while the other will be based at Abidjan for the production of cocoa mass. Each
                                                                                              12

                                                                                              14

                                                                                              29
processing plant will be supported by a dozen of surrounding factory annexes for the packaging
of the broad beans. These will be constructed within the areas of high beans production.



SOCIO ECONOMIC ANALYSIS OF THE COCOA/COFFEE SECTOR

Genera Information

a. The Cocoa/Coffee Sector

   The current Government has revamped the sector. Consequently the Office of Cocoa
   Alliance (Bureau de l’Alliance Cacao) has been moved to Abidjan in Côte d’Ivoire.

   La Côte d’lvoire is the world number one producer of cocoa. For many years, producers and
   consumers have come together for treatment of cocoa. Thus, we have the Association of
   Producers, the Federation of Producers’ Cooperatives, cocoa/coffee scholarship fund, and
   multinational cocoa/coffee export and processing Companies, Ivorian-own cocoa beans and
   coffee seeds export Companies.

b. Legal Framework

   It is not possible to establish a Company or invest in Côte d’lvoire without submitting to the
   laws and regulations in force in this country. Even though Company registration is free, there
   are laws and rules of enforcement for these laws for the trading in cocoa and coffee of Côte
   d’Ivoire.

c. Government Support

   There are several Government and public-support structures for the creation of Companies in
   Côte d’lvoire notably the CEPICI, and the Chamber of Commerce and Industry.

   For the specific case of the cocoa/coffee sector, we will deal with Association of Producers,
   the Federation of Producers’ Cooperatives, and cocoa/coffee scholarship fund.
                                                                                              12

                                                                                              14

                                                                                              29
TECHNICAL STUDY ON THE FORMATION OF “EDENE” COCOA/COFFEE
COMPANY

It is the most prosperous sector in La Côte d’Ivoire. Everybody has dealing in it – the State of
Côte d’Ivoire, Multinational (MNCs) and other private-sector businesses. The only losers are the
producers because they are not well organized. We would like to contribute our widow’s mite for
the building of an industrial Côte d’Ivoire, the reason why we have established this entity.

Below are details about the establishment of the Eburnean Company in cocoa/coffee trading,
“EDENE’’ Cocoa/Coffee.



Cocoa Mass and Butter Production Factories

The project

The project concerns the establishment of a company which offers to process all agricultural
produce especially cocoa. Two factories are proposed, one in Abidjan and another in San
Pedro.


Objective

These are:
    Purchasing, processing, packaging and sales of cocoa and coffee.
    Production of cocoa by-products namely:
          i. Mass/ Powder
         ii. Butter / Oil
        iii. Cake

We desire to establish in phases, an evolving and performing Company until it attains a reputable
level.



Conditions for the Implementation of the Project

Location:

The project will be implemented in Abidjan and San Pedro
                                                                                              12

                                                                                              14

                                                                                              29
Investment Types:

We expect to build two main factories, a score of other peripheral factory annexes, and
implement a certain number of fixed assets amounting to a total cumulative cost of twenty (20)
billion CFA francs.



Employment:

We envisage being able to eventually create more than 500 permanent jobs for senior
Management staff, mid- level staff, professional officers, office and service personnel and
labourers of all categories.



THE COMPANY

Legal Identity

Legal Name: Limited Liability Company

Company Name: Eburnean Trading in Cocoa/Coffee

Abbreviation :           EDENE Coffee/ Cocoa Sarl.

Head Office       :      Abidjan 09 BP 702 Abidjan 09

Contacts          :      Off.: +225 21 270 412
                         Cell: 08 742 809 / 06 336 243
                         E-mail: edene@aviso.ci

Social Capital:          200, 000, 000.00 CFA francs

Promoters

       The Project is initiated by:

                  Name and surname: Brou Nestor Assofi
                  Date & Place of Birth: Born in 1949 at Elinzué S/P de Bongouanou
                  Marital status:       Married with 8 children
                  Postal address:       09 B.P 702 Abidjan 09
                  Tel:                  +225 21 270 412
                  Cell:                 08 742 809 / 06 336 243
                  Email:                assofi2000@yahoo.fr
                                                                              12

                                                                              14

                                                                              29
                 Occupation:         Electro mechanic
                 National ID No.:    940460500212


Main Implementer:

Legal Identity

Legal name:             Limited Company
Company name:           EDENE Industries SA
Head office:            Abidjan 09 BP 702 Abidjan 09 /Tel.: +225 21 270 412
Social Capital:         250, 000, 000.00 CFA Francs
Postal address:         Abidjan 09 BP 702 Abidjan 09
Tel:                    Tel: +225 21 270 412 / Cell: 08 742 809
Email:                  edene@aviso.ci


Other Promoters

Partners of our Company are:

   1. Mr. Kouassi Henri KOUAMÉ
      Electro mechanic (retired)
      Domiciled at Abidjan Marcory
      Married with ten (10) children
      Born in 1948 at Elinzué S/P Bongouanou
      National ID No: 991130602331



   2. Madam Ablan Elisabeth ASSOFI
      Single without children
      Trader, domiciled at Elinzué
      Born in 1962 at Elinzué, S/P Bongouanou
      National ID No: 940331700476



MANAGEMENT

The administrative organs of EDENE Cocoa/Coffee Sarl are:

       A Board of Directors
       A General Management including
                                                                                                  12

                                                                                                  14

                                                                                                  29
           1. A Finance and Administrative department
           2. Sales and Marketing department
           3. A central factory management unit comprising:
                 - Department of the mass factory at Abidjan
                 - Packaging factories at Abengourou, Anyama, Agnibilékro, Kotobi, Adaou,
                     Divo, Fresco and Abidjan
                 - Cocoa butter factory management unit of san Pedro.
                 - Packaging factories at Sassandra et Soubré, Daloa, Man, Bouaflé, Gagnoa,
                     Oumé, Guiglo, Sinfra, Issia et San Pedro


PERSONNEL

The company staffs are divided in two groups: Head Office staff and factory staff at Abidjan,
San Pedro and other towns.

General Management

We benefit from the services of highly qualified staff, graduates of European, American and
Ivorian universities who have proven themselves already in similar works environments, as well
as young professionals with solid training in areas of management, finance, marketing,
accounting, trade and international business. The best candidates will be selected through
recruitment.

The factories will be managed by other senior technical staff, with knowledge in agribusiness
and processing of raw materials and business management.



Technical Supervision

Technical supervision will be ensured by mid-level staff who have attained their levels through
internal promotions in other companies which deal in purchasing, cocoa export sales or other
agro- industrial products.



GEOGRAPHIC BACKGROUND

General Management

EDENE Coffee/Cocoa
                                                                                   12

                                                                                   14

                                                                                   29
Head Office: San Pedro Factory, Abidjan Factory

Packaging Factory

Maintenance

Production: Fresco, Anyama, Abengourou, Gagnoa, Sassandra Soubré, Daloa, Oumé, Adaou,
Divo, Kotobi, Agnibilékro, Issia, Sinfra, Bouaflé, Guiglo, Man.



SITES FOR VARIOUS FACTORIES

Abidjan Factory

      Factory annex of Anyama
      Factory annex of Adaou
      Factory annex of Kotobi
      Factory annex of Agnibilékro
      Factory annex of Abidjan
      Factory annex of Abengourou
      Factory annex of Divo
      Factory annex of Fresco



San Pedro Factory

      Factory annex of Sassandra
      Factory annex of Gagnoa
      Factory annex of San Pedro
      Factory annex of Oumé
      Factory annex of Daloa
      Factory annex of Man
      Factory annex of Soubré
      Factory annex of Sinfra
      Factory annex of Guiglo
      Factory annex of Bouaflé
      Factory annex of Issia
      Factory annex of Sinfra
                                                                                                               12

                                                                                                               14

                                                                                                               29


Managing Director

Others

Director, Sales and Marketing

Director, Administration and Finance

Production Manager and Technical Director

Central Management Director of Factories

Office of the MD.



San Pedro or Abidjan Factory

Director, processing factory of ............................................................................

Secretariat

General Manager of packaging factories

         Production Manager
         Technical Director
         Sales Manager
         Administrative Manager



Laboratory

Warehouses

Others:             Research cabinet
                    Electric power
                    Abidjan factory

San Pedro Factory

Production
Maintenance schedule (mechanic)
Heating /energy
                                                                                              12

                                                                                              14

                                                                                              29
Comparability
Logistics
Personnel
Warehousing
Sales


Secretariat

Operations
Warehouse MP
Laboratory check

Others

Mechanics
Electric power
Warehouse PF
Purchases/Stockings
Logistics
Accounts


Staffs

Administrative Department
Sales department
Technical department
Production department
Manager, packaging factory



Project Cost:

The estimated cost of establishing the company is twenty-five (25) billion CFA francs distributed
as follows:

   1. Investment (capital ) :        20,000,000,000 FCFA
   2. Working capital       :        5, 000,000,000 FCFA
                                                                                  12

                                                                                  14

                                                                                  29
Utilisation of Credit solicited


Working Capital

                      DESCRIPTION                                     AMOUNT
Purchasing of raw materials and current expenditure        5 billion CFA francs
Total                                                      5 billion CFA francs




Capital Investment

                DESCRIPTION                                         AMOUNT

Costs of establishment and constitution of
Company                                          200, Million FCFA
Administrative and Factory building              4, billion FCFA
Materials and tools                              13, billion FCFA
Office stationery and furniture                  2 billion FCFA
Installation, Layout and Design                  800 million FCFA
Total                                            20, billion FCFA
                                                                                                     12

                                                                                                     14

                                                                                                     29
                                        MARKET STUDY

   1. Activities
         a. Nature of the activity

Our market of interest is the trading and processing of cocoa/coffee:

              i.    Local purchases and storage, processing, drying, packaging and export sales
                    of cocoa and coffee.
             ii.    Production of cocoa by –products, namely:
                         Mass/Powder
                         Butter / Oil
                         Cake

           b. Geographic background of the Market

Cocoa is cultivated in all the forest areas of Côte d’Ivoire. The forest regions of the South are:

               i.   The region of the 18 mountains: Man, Danané, Bangolo, Biancouma.
              ii.   Lower Sassandra region: San Pédro, Sassandra, Soubré, Tabou
            iii.    Middle Cavally Region: Guiglo, Duékoué, Toulepleu
             iv.    High Sassandra Region : Daloa, Vavoua, Issia
              v.    Marahoué Region: Bouaflé, Zuénoula, Sinfra
             vi.    South Bandaman Region : Divo, Lakota, Fresco
            vii.    Fromager Region : Gagnoa, Oumé
           viii.    Lakes Region : Toumodi, Tiébissou
             ix.    Lagoons Region : Dabou, Grand Lahou, Tiassalé, Alépé
              x.    N’zi Comoé Region : Dimbokro, Bongouanou, Daoukro, Bocanda,
                    M’bahiakro
             xi.    The Agnéby Region: Agboville, Adzopé
            xii.    Middle Comoé Region : Abengourou, Agnibilékro
           xiii.    South Comoé Region : Aboisso, Grand Bassam, Adiaké, Bonouan
           xiv.     Yamoussokro District: Yamoussokro
            xv.     Abidjan District : Bingerville, Anyama
           xvi.     Zanzan Region : Bondoukou, Tanda
                                                                                                 12

                                                                                                 14

                                                                                                 29
    2. Demand and Clientele
         a. Structure of market

All the above-mentioned regions produce cocoa from La Côte d’Ivoire. Some produce more than
others.

           i.   In the N’Zi Comoé, South Comoé and Agnéby regions, the plantations are old
                with low production yield.
         ii.    Plantations in the Lagoons and Middle Comoé regions are old but well maintained
                and regenerated. They have average production yield.
         iii.   On the contrary, the South Bandaman, Lower Sassandra, the Marahoué,
                Fromager, Upper Sassandra, the 18 Mountains and Middle Cavally regions
                dispose of new plantations. They produce much more than the other regions
         iv.    In all the cases, the overall national production of the broad beans is estimated at
                an average of 1.2 million tons. Until recently, 90% of this production was
                exported; only 10%was sold and processed locally. But towards the end of the
                1990s, the then government emphasized particularly on industrializing the cocoa
                sector, to the extent that today, 30% of the product is processed locally by MNCs
                based in Côte d’lvoire, the remainder being exported to the Americas, Europe,
                Africa, Asia etc... Distributed among Ivorian-owned companies, MNCs and
                farmers cooperatives unions

xvii.     Qualitative evolution of the market

La Côte d’lvoire is the world’s biggest producer of cocoa with 43% of world output. The figure
increases by 5% every year. Our global target is the purchase and processing of 10 to 15% of the
national cocoa output, or 120, 000 to 200,000 tons of the broad beans out of the 1,2million tons
produced in Côte d’lvoire.

The crises that we underwent in the course of the last three years have created a loss of earnings
of about 20% to cote d’lvoire.

Initially and for the operation of the two factories, we envisage processing 60 000 to 100 000
tons of the broad beans.


xviii.    The Nature of our Clientele

Actors of the different areas of the coffee/ cocoa trade are:
                                                                                               12

                                                                                               14

                                                                                               29
          1. Suppliers
             1.1 Individuals
                 field trackers
                 special buyers
                 wholesalers
                 cooperatives

              1.2    Sales
                     factories owners
                     exporters
                     manufacturers if by-products

          2. Clients

              Local

              2.1    Treated broad beans
                     Exporter factory-owners (packaging)
                     Manufacturers of by-products

              2.2       Users of by-products
                       Chocolate planets
                       Restaurant owners
                       Confectioners

              2.3 Export
                   Chocolate plants in Europe
                   Americas
                   Africa
                   Asia

In general, foreign financiers are the users of by-products produced in Côte d’lvoire.


xix.     Demand volume


The overall national production is sold annually, that is little more that 1.2 million tons.
                                                                                              12

                                                                                              14

                                                                                              29
 xx.     Demand distribution

The companies are established in Abidjan, San Pédro, Daloa, Abengourou, Soubré, Oumé Divo,
Sinfra, etc… Demand is spread as follows:

                  Local processing in Côte d’lvoire   :      30%
                  Export to Europe – European Union   :      40%
                  The Americas                        :     15%
                  Canada                              :     5%
                  Others                              :     10%

  3. Offer and Competition

       3.1 The Offer

It is guaranteed with the overall farmers’ productions and depends on climate changes and the
socio-economic life styles of the cocoa-producing regions. Hence, there could be a variation of
plus or minus 5% in normal times. With the war, loss of earnings is in the region of 20%
particularly the production in the region of Man.



       3.2 Competition

           a. Generalities

Until recently, the export of cocoa and coffee was exclusively reserved for European companies,
MNCs and companies established by parents and friends close to the ruling power.

Following the deregulation of the coffee/cocoa sector, three types of companies emerged:

                   European and American MNCs
                   Export- driven Ivorian-owned companies
                   Farmers’ cooperatives

The government has, in agreement with the International Alliance for Cocoa, initiated a vast
operation to promote and rehabilitate the cocoa sector in Côte d’lvoire through the construction
of several cocoa processing factories in high-yielding areas.

Farmers who have come together to form associations to defend their interests, have established
a cocoa scholarship fund endowed with a trust fund of several billions of CFA francs as well as a
management structure for the sector (FDRCC, FGCCC, FRC).
                                                                                              12

                                                                                              14

                                                                                              29
           b. Identification of competing businesses

Manufacturing of Cocoa by-products

They are essentially affiliate branches or representative businesses of MNCs:

                 SACO de Cacao BARRY (France)                     – Cargill (America)
                 CAPRAL –Něstlé (Switzerland)                     – CEMOI (Belgium)
                 SIFCA/ UNICAO/ ADM Cocoa (France)                – CHOCODI (France)

These alone process close to 30% of the national output and also export the broad beans and
coffee seeds as well as coffee by-products.


Packaging of the broad beans

There are several dozens of cocoa beans packaging companies. Many are established every year.

           c. Observations

                 1. Market distribution

Some multinational and national companies share 80% of the cocoa export market. They are
SACO, CAPRAL, UNICAO, ADM COCOA SIFCA, CARGILL, TRODIVAL, CEMOI,
EBURNEA, PROCI, SCIPAV while some farmers’ cooperatives are trying to carve their own
niche.


                 2. Strength and weaknesses

All these multinational companies are members of powerful European, American and Asian
cartels. These cartels finance the cocoa/coffee season each year through their home banking
institutions with agencies established in Côte d’lvoire. Regarding Ivorian exports and
cooperatives, they cannot even depend on the local banks. They are therefore pushing to strike
partnership deals with Europeans, Americans or Asians. This constitutes a bottleneck to the very
existence of these cooperatives.

The current government has undertaken to revamp the sector, a situation that rekindles the hope
and confidence of Ivorian exporters and industrialists.
                                                                                               12

                                                                                               14

                                                                                               29
   TECHNICAL AND TECHNOLOGICAL STUDY

   1. The product

The prime objective of our company is to promote Ivorian cocoa. Cocoa is the first export-
earning commodity of our country.

Until recently, the greatest portion of its trade was limited to the purchasing and sales of the
broad beans. Cote d’lvoire has reached a level of development such that it should promote the
processing of this product of which it is the number one producer in the world. This is what our
company desires to achieve.

Presentation of product

Two things make up the essence of a product. They fall within the different production
processes.


       a. Production process

            1. Packaging

Our production lines are fed with the broad beans from cooperatives’ collection and storage
centres established in the hinterland. These are first dried. The moisture content is reduced to
3.5%. They are then cleaned, selected, and put in 60-kg bags for export according to the
appropriate system of ginning. This operation triggers a loss of about a 7% in the initial weight.



            2. Production of by-products

Cleaned, graded and selected some of these beans are used to produce by-products. They are
heated and crushed. It leaves the requested by-products. The roasting process removes the hull,
represents 5% of the initial weight. The grinding can produce mass. Using the press is out the
butter (and oil). The residue is called cake. These operations cause a loss of about 18-20% of
initial weight, the yield being 80% perfect.


       b.      First product: cocoa beans

Beans received on our production lines are cleaned (dust, stones, fibres, twigs), shelled (100,
110, 120 and 130), and selected (local sale or export sale). They are then put in 60kg-bags
according to the appropriate system of ginning.
                                                                                              12

                                                                                              14

                                                                                              29
       c. Second product: cocoa by-products

The beans Selected for the production of by-products undergo special treatment:

      Calibration
       They must be of the same size, same quality, and same shape, anything that contributes
       the compliance of international quality standard;

      Torre-faction
       The heating temperature must adhere strictly to international standards to ensure product
       quality;

      Shelling
       This operation removes the envelope or hull before grinding;

      Grinding
       Modern equipment will be installed in the factory in order to conform to standards
       applicable to this operation;

      Pressing
       We will use screw press which ensures consistency in the quality of product.

At the end of all these operations, the following products are synthesised:

   1. Hull: it is used as a combustible in boilers or as fertilisers in large-scale banana
      plantations.
   2. Mass: it is obtained after grinding. The operation can stop at this stage. The mass is used
      for chocolate and in cosmetics. It can also be used to produce sweet or non-sweet
      powders.

   3. Butter: obtained after pressing of the cake. The heated butter gives off oil and makes up
      50% according to how the operation is done with the hull and between 54 to 55 percent
      without the hull.

   4. Cake: the mass once free of its fat (butter) becomes what is called cake.

   5. Theobromine: potent diuretic and active for young children, it is the active ingredient
      derived from cocoa.
                                                                                                12

                                                                                                14

                                                                                                29
It worth noting that the cocoa treatment and packaging operations is accompanied with a loss of
about 7% of the initial weight (pebbles, crooked beans, bits of straw, dusts, fibres) while the
production of by-products through (torrefaction, grinding, pressing, and various losses in the
piping system) triggers a loss of about 18-20% of the initial weight. In all the cases, the desired
ideal performance is 80%.



Aims of Production

   a- Ambition

Our main ambition is treatment at the start:

      40 000 tons of cocoa beans at the San Pedro factory, for the production of butter and
       cake. Beans will be supplied from the regions of San Pedro, Soubré, Sassandra, Oumé,
       Sinfra, Gagnoa, Divo, Man, Guiglo and surrounding areas.
      30 000 tons of cocoa beans at the Abidjan for the production of mass, powder and
       chocolate. The beans will be supplied from the regions of Aboisso and Bonoua,
       Abengourou and Agnibilékro, Agboville and Adzopé, Bongouanou, Alépé, Tiassalé and
       Sikensi, Grand Lahou, Yamoussokro, Tanda, Toumodi and surrounding nareas.
      30 000 tons of cocoa beans treated for export by processing factories. This brings it to a
       total of 100 000 tons. This volume represents a little more than 8.3% of national output of
       the cocoa beans. This figure will finally reach 300 000 tons per annum.


   b- Our market share

       1- Cocoa beans

The national output of the cocoa beans is pegged at an average of 1.2 million tons per annum. In
the long term, we envisage taking 20-25% of the market, that is 300 000 tons. EDENE activities
will start by trading in this volume of the beans. The offer is available. Every year, producers
harvest and sell all the Ivorian beans.

       2- By-products

Of the 300 000 tons, we will earmark 65-75% for packaged and bagged beans, 10-15% for
production of mass, powder and chocolate and 15-20% for butter production.
                                                                                                12

                                                                                                14

                                                                                                29
   c- Conventional practice

National production of cocoa beans makes up an average of 1.2 million tons per annum. Close to
30% of this figure is processed in factories located in Côte d’Ivoire. The remainder is exported to
other parts of the world. We hope to process finally 5-10% of the national output.


   d. Funding

We have indentified five destinations of the exported products:

       1. Lebanese, Syrians, and North Africans supply Arab, North African, and Middle-East
          countries.
       2. The French supply France and other European countries.
       3. Some European countries like Spain, Holland, Great-Britain, Belgium etc..., supply
          themselves.
       4. North Americans, Canada and the United States.
       5. Some farmers’ cooperative export to the countries mentioned above according to
          opportunities available to them and already established links.

Countries from which originate these Multinational Companies (MNCs), also have banks in Côte
d’Ivoire which fund the purchase of their products, thus:

SIB of Crédit Lyonnais, SGBCI of Société Générale, and BICICI of BNP support French MNCs
(Cacao Barry with SACO and CHOCODI). CITY Bank supports Americans (ADM Cocoa,
CARGIL). BIAO of Belgolaise supports the Belgians (CEMOI). Barclays Bank and Chartered
Bank support the English. Arabs and the countries of the Middle East have the People’s Bank of
Morocco. It is worthy to note that the Swiss have a big share in CAPRAL Nestlé’s chocolate
manufacturing business. Côte d’Ivoire has instituted State funds: FDPCC, FGCCC, FRC and a
Scholarship fund, BCC which are all timidly attempting to meet the challenge by financing some
producers who have formed cooperatives.
       .
   e. The Build-up of Turnover

Three production lines will be established in Abidjan, two of which will function 24h a day. This
will allow for the treatment of an average of 45 000 tons of beans every year of which 40, 000
tons will be earmarked for processing. With a 40% yield, the mass from this factory at the price
of 1,500 FCFA, gives a turnover of 48 billion CFA francs.

Conversely, five lines will be established at the San Pedro factory. Three of these will function
24 h a day. This will allow for the treatment of an average of 40,000 tons of beans every year of
which 30,000 tons will be earmarked for processing. The yield here is 55% and the butter from
                                                                                                12

                                                                                                14

                                                                                                29
this factory at 2 500 FCFA yield a turnover of 49.5 billion CFA francs. Packaging of the cocoa
beans, the cakes and the coffee grains constitutes other profits of about 58.15 billion CFA francs.


   f. The table of turnovers is drawn as follows:

The mass priced at 1500 FCFA from the Abidjan factory: Volume of beans: 30 000 tons

The butter from the San Pedro factory priced at 2500 FCFA volume of beans: 40 000 tons



DESCRIPTION YEAR 1               YEAR 2    YEAR 3      YEAR 4      YEAR 5     YEAR 6      YEAR 7
Mass                48,000       48,000    50,000      50,000     50,000      50,000      50,000
Butter              49, 500      49,500    50,000      50,000     50,000      50,000      50,000
Others              58,150       58,500    60,575      60,600     61,000      70,000      75,000
Total               155,650      156,000   160,575     160,600    161,000     170,000     175,000




Production Means

Hardware (technical materials)

Cleaning of the roasted beans

The cleaning system for the cocoa beans
eliminates all impurities from the raw materials
which are the cocoa beans, such as pieces of
wood and leaves, sand, non-iron and iron
metals.

Treatment capacity:

500-20 000 kg/hr of cocoa beans

Important facts of the cleaning factory

        Very efficient
        Optimal repeatability
                                                    12

                                                    14

                                                    29
      Infrared pre-treatment (p1)

Infrared pre-treatment (p1) serves as a cocoa
beans preparatory system before sorting. The
beans are exposed to an infrared radiation for a
period of 120 to 180 seconds. This huge energy
dose causes the removal of the shell and leads
the beans to the upper part of the sorter.

Treatment capacities

      1 000-8 000 kg/hr of cocoa beans

Important factory of the infrared machine (1r)

      Removes the shell from beans
      High- yield values
      Ideal repeatability
      Low–cost energy
      Reduction in insect wastes and mice furs



W Sorter

The W sorter eliminates the beans shells. The
factory is equipped with a double sorting system
which garantees a better adaptation of quality to
the individual and the beans of source. The
automatic configuration system of sucking the
shells ensures a high yield.

Treatment capacities

1,000 -8,000 kg/h W Sorter

Important facts of the W Sorter

      Efficient separation of shells from nibs
      High yield
      Optimal repeatability
      Low-cost energy
                                                                    12

                                                                    14

                                                                    29
       Easy access for maintenance

Alkanisation of nibs ANC

The ANC system is specially designed to
alkanise the cocoa nibs. This will alter the pH
value of the nibs and trigger reactions
corresponding to the chosen colour for the
production of cocoa powder. As the plant is
adapted to the atmospheric pressure, pressure and
vacuum, all the desired colors can be produced;
natural brown, red, deep red, brown, dark brown
and even black powder can be produced in this
plant.

Treatment capacities

500-5,000kg/h lot at the bursts of cocoa

Important facts of alkanisation of plants CAN

       Any pH value can be obtained
       Intense colour development during cocoa powder production
       Optimal repeatability



TORNADO RS Machine for the torrefaction
of the nibs

The roasting machine TORNADO for cocoa nibs
is the only machine in the world for the
sterilization of cocoa nibs during roasting.

Treatment Capacities

600 - 5,000 kg / lot at the buirsts of the cocoa

Important facts of roasting machine

TORNADO RS
   Excellent development of aroma
   Repair of aroma defetcs
                                                                                12

                                                                                14

                                                                                29
      Sterilisation during roasting
      Treatment with the introduction of sugar solution to enhance aroma


CBS Steriliser

The cocoabeans (CBS) Steriliser was conceived
to bring new or already existing cocoa nibs
roasting systems, with a reliable sterilisation.

Treatment Capacities

500 – 20,000 kg/h of cocoa beans

Important facts about the CBS Steriliser

      Sterilization with a total plate TPC
       <1000
      Small increase in water content during the sterilization process
      Optimum repeatability



CBR Roaster of cocoa beans

The CBR roaster of cocoa beans has been
designed for roasting to the highest level flavor
development. This plant is ideal for customers
of small- and medium-size capacity while
demanding higher quality products. Because of
the possibility of integrating a catalytic off-air
cleaning system, the machine complies with
European regulations for off-air.

All customers who know the legendary roasting
machine “Sirrocco” discover that the CBR is
the continuation of modern roasting technology that is reliable and flexible.

Treatment Capacities

      100-1,500 kg/h of cocoa beans
                                                                                              12

                                                                                              14

                                                                                              29
Important fact about the CBR Roaster

      High-flavor development
      Mild mechanical treatment of cocoa beans
      Optimum repeatability
      Low energy consumption


CBR Roaster of cocoa beans

Cocoa powder CPC manufacturing plant

The CPC manufacturing plant has been designed
to optimize the production of stabilised cocoa
powder so that storage is possible, even in big
bags.


Treatment capaicties

500 – 4,000 kg/h of cocoa powder

Important facts about the cocoa powder CPC
manufacturing plant

      Absolutely stable cocoa powder,
      No clogging or agglomeration of the powder during storage
      100% efficiency due to integrated filter system
      Cleaning intervals due to locked process system
      Greater security against fire outbreak, garanteed by a system of integrated nitrogen


Software and computer system for the general supervision of the plant and individual
machines

      Support and establishment of specific performance
      Server for development and planning with a CAD system
      Development software, planning independent control planning ICP with Manufacturer
      The operating systems and display including software
      Installation and commissioning of the machine and plant in strict conformity with
       worldwide standards and regulations
      Production support and training of employees
                                                                                                  12

                                                                                                  14

                                                                                                  29
   De créer les conditions de reproductible des procédures et des processus complets pour
   un contrôle fiable et précis d'enregistrement de la personne étapes du processus de
   est nécessaire. Barth prend en charge ces aspects de couleur visualiser les processus. PHRASE N’A
   PAS DE SENS À TRADUIRE.



Not only the PLC plant control and machinery control data are collected, but also commercially
relevant data, such as flow quantity, the yield on energy consumption etc...can be recorded and
transmitted to a main server.

In addition, Barth provides business solutions for the application of older control systems. The
controls allow easy operation and viewing. Remote control via phone or Internet offers
additional opportunities for a safe and stable production in any factory in the world.


The Complete Plant

GW Barth plans, builds and delivers complete systems for processing cocoa on a turn-key basis.
From the raw cocoa beans, finished liquor, cocoa butter, crushed cake and cocoa powder are
produced. The facility planning includes building layout, planning the installation of individual
transport and storage systems and the design of all necessary arrangements and provides
facilities for disposal. The installation and commissioning of these plants is carried out by skilled
Barth personnel. Especially the recipe development in cooperation with the plant operator is n
additional      important     task     within   the   framework     of    a     turn-key project.

In the end, it results in a cocoa processing plant that meets the highest requirements on final
products in the international comparison.
                                                                                              12

                                                                                              14

                                                                                              29
PRODUCTION MATERIALS

These are all technical equipment, computer and office equipment and laboratory monitoring
equipment which will enable our company to carry out its activities and achieve its objectives.

Other means of production

    1. Human Resources (see Organissational Chart)
We expect to benefit from the collaboration of executive talent and expertise in all areas of
administrative, technical, financial and economic production and trading. This will enable us
create over 500 permanent jobs including executives at the company headquarters through to the
workers and employees in the facories.

   2. Commercial Properties

                 Company Head Office

                      It will be housed in a building in Abidjan Plateau

The Abidjan factory will be built in the Abidjan district in the industrial area of Yopougon on a
land size of 5ha which we are proposing to acquire as soon as possible. The activity of this
company is selling and packaging for export. This industrial zone Yopougon is more appropriate.
It will be supplied with beans by a dozen additional factories specialised in the tretatment and
packaging of beans purchased from producer cooperatives as well as from private buyers.

The San Pedro factory will be built in the San Pedro Township on a 5ha land. Much of its
activity will be devoted to the production of butter. It will be supplied with beans by a dozen
attached factories for the packaging of the beans delivered by producer cooperatives and private
buyers. It is wothy to note that these plants will be ISO9001-certified.

   3. Finance

This Company is a partnership between Ivorian promoters and foreign investors (European,
American, Asian or African). The Investments fund is estimated at 20 billion CFA francs while
with a working capital of 5 billion CFA francs. These are expected to be sourced from Bank
loans.

   4. Transport and Handling

This is about means of transport and handling.
                                                                                                12

                                                                                                14

                                                                                                29
MARKETING AND DISTRIBUTION

We expect to put in lace our own distribution network in Europe, America, Africa or Asia
according to the opportunities that will be availbale to us. For now, we will depend on existing
networks.

We can also sell all our produce to the Investor who would have fully financed the investments,
as is the practice with already existing Businesses.


BUSINESS STRATEGIES

Difficulties we are likely to encounter are of a competitve nature – a young Business such as
ours faced with several MNCs in an uneven playing field – but our ambition, will power and
financial clout, coupled with our knowledge of the product and the terrain, could help us succeed
in the business. We will therefore take pride in everything we do.

           a. The Product

                We intend to buy good quality beans, that is, beans that are well formed, well
                fermented, well dried, and well sorted. This quality is ensured by the producer
                cooperatives. That is why we will link up with several growers’ cooperatives
                formed in the villages where the beans are produced.

           b. The Price

                Prices paid to producers and to factory are set locally and conform to nationally
                set formula. Export sales price on the other hand, is fixed by International bodies
                such as the London Stock Exchange and the New York Exchange. The
                Company’s performance depends partly on the purchase price of the beans. The
                choice of high quality beans can make good sales, since the sales price depends
                on ginning.

           c.   Promotion

                We chose to promote Ivorian cocoa first in the countrysides and in all homes, at
                various fora and all other occasions outside the country.

           d. Publicity/Advertisement

                We will allocate a good portion of our operating budget for the publicity of our
                product. We can organise hot-chocolate tasting sessions around the country as is
                the case for Ivorian coffee.
                                                                                                     12

                                                                                                     14

                                                                                                     29
ECONOMIC AND FINANCIAL STUDY

Economic Study

   1. Economic Environment

La Côte d’Ivoire is the world’s largest producer of cocoa, with an annual average production of
1.2 million tons of the broad beans, representing 43% of global output – 70% of this volume is
exported to Africa, Europe, America and Asia. Only 30% is earmarked for processing by
Ivorian-based companies.

The country remains the economic power house of West Africa despite the crises we have
suffered since 2002. From the economic point of view, it remains the trailblazer in the sub
Region and palys host to the most important, key regional and sub-regional financial institutions
(BCEAO, UEMOA and ADB).

La Côte d’Ivoire is also a privilege partner of several European countries such as France. There
are other trade agreements between our country and countries of Asia and America. We are
interested in the local (Côte d’Ivoire), Subregional (ECOWAS and UEMOA) and external
(World) markets. This market is estimated at a size of several billions of CFA francs.

It is also worthy to note thast the agricultural sector remains the main stay of the Ivorian
economy. In 1996 for example, it represented more than 50% of total exports: coffee, cocoa,
timber, oil, rubber, cotton, pine apple, petroleum products and industrial products are the main
export commodities while wheat, rice and technological products are the main import
commodities.

   2. Socio-economic Benefits

Our company is positioned as the preferred partner on the one hand, of small farmers and
cooperatives located in villages and hamlets in the region who obtain a secure outlets for their
production and on the other hand, of chocolate companies, Beauty products and other food
products, of which they are assured of a guaranteed supply of raw materials.

Another impact which is not the least is the creation of jobs. In this time of crisis, a job can
support more than 10 to 20 people. We believe we can create more than 500.

   3. Cost of Funding

Given the foregoing, the study allows us to determine the cost and financing of the project and to
generate financial projections of profitability, viability and feasibility. The capital is fixed at two
hundred (200) million CFA francs. The total investment is estimated at twenty (20) billion CFA
francs and the working capital at five (5) billion CFA francs, which gives a total funding cost of
twenty five (25) billion CFA francs.
                                                                                            12

                                                                                            14

                                                                                            29
   4. Details (in millions of CFA francs)

      a. Funding needs

            Capital Budget                                                        20 000
            Working Capital                                                        5 000

            Total                                                                 25 000


      b. Provisional sources of funding


            Other funding sources                                                 5 000
            Externally solicited funds                                           20 000

            Total                                                                25 000


      c. Capital Budget

                   Research, studies and formation                                 200
                   Lands, acquisitions and lands development                     2 000
                   Construction of administrative buildings                      1 000
                   Construction of buildings of the main and auxiliary plants    1 000
                   Production equipment and tools                               13 000
                   Transport equipment and Handling                              1 000
                   Equipment and Office furniture                                1 000
                   Installations and layout                                        200
                   Deposit and Bond                                                600

                    Total                                                        20 000



      d. Working Capital Needs

Description                                             Year1         Year 2       Year 3
    Funds
                    Purchases                         100 000        100 000      100 000

                    External Furniture                    260            260          260
                                                                                                      12

                                                                                                      14

                                                                                                      29
Other external services                                    130              140              175
                   Losses and charges                       50               50               50
                   Salaries of personnel                 2 500             2 500        2 500
                   Taxes et duties                           0                0                0
                   Financial expenses                    1 500             1 500        1 500
Total Funds                                         105 440              105 445      105 185
        Jobs
                   Clients                           91 590               91 600       91 635

                   Finished products                     8 850             8 850        8 850

Total jobs                                          100 440              100 450      100 485
Working Capital Needs                                    5 000             5 000        5 000



Annual Assessment of the need for working capital

                          Year1      Year 2     Year 3      Year 4        Year 5    Year 6     Year 7
Funds                     105 440    105 450    105 485     105 500 105 525 105 550 105 650
Jobs                      100 440    100 450    100 850     100 500 100 525 100 050 100 150
Working Capital              5 000      5 000     5 000          5 000      5 000    5 500         5 500



        e. Capital Budget

Description                                          Year 1                Year2             Year3
Needs
   Research, studies and formation                        200                 160              120

   Lands                                                 2 000              1 800             1 600

   Construction of commercial properties                 2 000              1 800             1 600

   Operating materials and equipment                 13 000                11 700            10 300

   Handling and transport                                1 000                750              500

   Equipment and Office furniture                        1 000                800              600
                                                                                        12

                                                                                        14

                                                                                        29
  Installations et layout                           200               160        120
  Working Capital Needs                            5 000            5 000       5 000
  Deposit and Bond                                  600               480        360
                              rd
  Repayment of loans from the 3 year                     0              0       4 435
                Total Needs                      25 000            22 650      25 320
  Funds
  Equity
   - Other funds                                   4 800            4 800       5 020

   - Share capital                                  200               200       5 000

 Short-term Credit                               20 000            17 650      15 300

                Total Funds                      25 000            22 650      25 20




   2. Other Financial Forecasts

      a. Balanced Sheets
            a1. Opening Balance

                     Assets                                   Liabilities
Investments                        20 000 Equity
                                               Capital                           200
Banc and Cash                          5 000
                                               Current Account Associate       4 800
                                               Medium-term and long term debts 20 000
Total Asset                        25 000 Total Liabilities                    25 000
                                                                                        12

                                                                                        14

                                                                                        29
         b. Provisional Balanced Sheet
            Year One

                      Asset                                          Liabilities


Fixed Assets                                      Equities
 Research, studies and formation           200       Capital                           200
 Lands                                    2 000      Current Account Associate       4 800
 Construction                             2 000      Retained earnings               2 283
 Equipment and Tools                     13 000      Reserves                        7 134
 Handling and Transport                  1 000       Equities                       14 417
 Equipment and Office furniture          1 000
 Installation and Layout                   200 Medium-term and long-term debts
                                                     Medium-term loans              20 000
Other Fixed Assets                                   Fixed Capital                  34 417
Deposit and Bond                           600
               Total Fixed Assets     20 000 Short-term debts
                                                     Short-term loans               20 000
Other various Products               72 603          Suppliers                     100 390
                                                     Accruals                        3 870
Available Short-term Balance                         Statement                       1 000
Clients                               91 590         CNPS                               2
Banc and Cash                        14 417          Due to Short-Term             125 262
Receivable                               6 729
                                                  Results
Turnover Value                      112 736         Net Profit                     45 660
Total Assets                        205 339 Total Liabilities                      205 339
                                                                                      12

                                                                                      14

                                                                                      29
       Year Two

                     Asset                                      Liabilities


Fixed Asset                                   Equities
  Research, studies and formation      160       Capital                           200
  Lands                              1 800       Current Account                  4 800
  Construction                       1 800       Retained Earnings                2 295
  Equipment and Tools               11 700 Reserves                               7 185
 Transport and Handling                750    Equities                           14 480
 Equipment and Office Furniture        800
 Installation and Layout               160    Long-term and Medium-term Debts
                                              Medium-term Loans                  20 000
Other Fixed Assets                            Fixed Capital                      34 480
Deposit and Bond                       480 Short-term Debt
Total Fixed Assets                   17 650 Short-term Loan                      20 565
                                              Suppliers                         100 400
Other Various Assets                75 314 Accruals                               3 870
                                              Statement                           1 000
Available Short-term Balance                   CNPS                                   2
    Clients                          91 600    Due in Short-Term                125 837
   Banc and Cash                    14 480        Results
   Receivables                        7 173       Net Profit                     45 900
  Turnover Value                    113 253
Total Assets                        206 217 Total Liabilities                   206 217
                                                                                       12

                                                                                       14

                                                                                       29
       Year Three

                     Assets                                        Liabilities


Fixed Assets                                    Equities
    Research, studies and Formation      120      Capital                           5 000
    Lands                               1 600     Current Account Associated        5 020
    Construction                        1 600     Retained Earnings                 2 398
    Equipment and Tools                10 400     Reserves                          7 193
    Transport and Handling               500      Equities                        19 611
    Equipment and Office Furniture       600
    Installation and Layout              120 Medium-Term and Long-Term Debts
Other Fixed Assets                              Medium-Term Loans                  15 865
    Deposit and Bond                     360    Fixed Assets                      35 476
Total Fixed Assets                    15 300
                                                Short-Term Debts
Other Various Products                 79 198         Short-Term Loans            17 650
                                                      Suppliers                  100 435
Available Short-Term Balance                          Accruals                     3 870
Clients                                91 635         Statement                    1 000
    Banc and Cash                      19 611         CNPS                             2
    Receivables                          644          Due in Short-Term          122 957
    Turnover Value                    111 890 Results
                                                               Net Profits        47 955
Total Assets                          206 388 Total Liabilities                  206 388
                                                                                                      12

                                                                                                      14

                                                                                                      29
   3. Cash Budget
      a. Year One


                            1       2      3    4     5      6      7      8      9     10     11      12
FUNDS
   Banc and Cash
      Report                            8 136   264 392 520 648 776 904                   1   1   1
      WCF                  5 000                                                        032 160 288
Sales
     Finished Products     8 850
     Cash Sales              165 14 000 14       14 14 14 14 14 14
     Forward Sales                  135 000     000 000 000 000 000 000 14 14 14
                                        135     135                     000 000 000
                                                    135 135 135 135 135     135 135
                                                                        135
Total Funds               14 015 14 143    14    14 14 14 14 14 15 15        15 15
                                          271   399 527 655 783 911 039 167 295 423
Operating Expenses
     Sales                 8 333   8 333   8   8        8      8      8      8      8      8      8       8
     Other Charges           674     674 333 333     333    333    333    333    333    333    333     333
                                         674 674     674    674    674    674    674    674    674     674
Total Expenses            9 007    9 007 9      9      9      9      9      9      9      9      9       9
                                         007 007     007    007    007    007    007    007    007     007
Operating Balance          5 008   5 136   5 5 392      5      5      5      5      6      6      6       6
                                         264         520    648    776    904    032    160    288     416
Other Cash
 Personnel Contribution    5 000 5 000    5       5   5   5   5   5   5   5   5   5
 Loans                    20 000 20 000 000     000 000 000 000 000 000 000 000 000
                                         20      20 20 20 20 20 20 20 20 20
                                        000     000 000 000 000 000 000 000 000 000
Total Other Cash          25 000 25 000 25       25 25 25 25 25 25 25 25 25
                                        000     000 000 000 000 000 000 000 000 000
Disbursements
   Investments                           20    20     20     20     20     20 20 20 20                  20
                          20 000 20 000
   Reimb. Loans                         000 000      000    000    000    000 000 000 000              000
                               0      0
                                          0     0      0      0      0      0   0   0   0                0
Total Disbursements                      20    20     20     20     20     20 20 20 20                  20
                          20 000 20 000
                                        000 000      000    000    000    000 000 000 000              000
Non-operating Balance      5 000 5 000    5 5 000      5      5      5      5   5   5   5                5
                                        000          000    000    000    000 000 000 000              000
General Cash Balance           8    136 264 392      520    648    776    904 1     1   1                1
                                                                              032 160 288              416
                                                                                                     12

                                                                                                     14

                                                                                                     29
         b. Evolution of Annual Cash Budget

                             0           00         1        2         3             4               5



FUNDS
                                                                                 30                  46
     Banc and Cash                                10
                                         8 538                                 218             963
         Forward             7 128               288        16 528    23 043
                                         5 000                                                             5
         WCF                 5 000                           5 000     5 000
                                                                               5 500                     500
         Sales                                   5 000
      Finishes Products      8 850                           8 850     8 850
                                         8 850                                             8     8 850
      Cash Sales           154 000                 8 850 135 000     135 000
                                       135 000                                           850   135 000
      Forward Sales          1 650               135 000    25 500    26 000
                                        21 000                                 135 000          40 000
                                                  25 575
                                                                                 35 000
TOTAL FUNDS                176 628 178 388 184 713 190 978           197 893   214 588         236 313

Operating Expenses
                           100 000                                             100 000         100 000
 Sales                                           100 000 100 000     100 000
                                 8     100 000                                   12 885         13 035
 Other Charges                                    12 620    12 635    12 660
                            090          8 100
Total Expenses            108 090 108 100 112 620 112 635            112 660   112 885         113 035
Operating Balance           68 538 70 288         72 093    78 343    85 233   101 683         123 278

Other Cash
                                        60 000    60 000
 Personnel Contribution     60 000                          60 000    60 000     60 000         60 000
 Loans                     240 000                         240 000   240 000   240 000         240 000
                                       240 000 240 000

Total Other Cash           300 000 300 000 300 000 300 000           300 000   300 000         300 000

Disbursements
Investments                      240      240 240 000 240 000        240 000   240 000         240 000
Reimb. Loans                     000      000      4 435     4 700     4 985      5 280                    5
                                                                                             12

                                                                                             14

                                                                                             29
                                                                                             600
                                    0           0
Total Disbursements         240 000 240 000 244 435 244 700           244 985   245 280   245 600
Non-operating Balance           60 000    60 000    55 565   55 300    55 015    54 720    54 400
General Cash Balance             8 538    10 288    16 528   23 043    30 218    46 963    68 878




   4. Amortization
      a. Depreciation Table for Fixed Assets

 Acquisitions          Period
    Value       Date    Year      01       02        03      04       05
Studies,
Researches &    2004        5        40       40        40      40       40
Formation                  10       200      200       200     200      200
Lands                      10       200      200       200     200      200
Construction               10     1 300    1 300     1 300   1 300    1 300
Equipment &                 4       250      250       250     250        -
Tools                       5       200      200       200     200      200
Handling and                5        40       40        40      40       40
Transport                   5       120      120       120     120      120
Equipment
and Office
Furniture
Installation
and Layout
Deposit and
Bond

          200
        2 000
        2 000
       13 000
        1 000
        1 000
          200
          600
       20 000                     2 350    2 350     2 350   2 350    2 100
                                                                                      12

                                                                                      14

                                                                                      29
      b. Table of Amortization of Loans

Loans Amount: 25 billion CFA francs
Interest rate = 6%; Grace Period: 2 years; Payback Period: 5 years

      Year            Capital           Amortized       Interest       Annuities
          Year 0          25 000                               1 500          1 500
         Year00           25 000                               1 500          1 500
         Year 01          25 000               4 435           1 500          5 935
         Year 02          20 565               4 700           1 235          5 935
         Year 03          15 865               4 985             950          5 935
         Year 04          10 880               5 280             655          5 935
         Year 05           5 600               5 600             335          5 935
                               0              25 000           7 675         32 675




Analysis of Provisional Operational Account
   1. Charges

      a. Purchases

          Raw materials – cocoa beans
          Consumables – cocoa sacs
          Sales transport
          Transit charges
          Other various charges

          Total Purchases                                               100 000


      b. External Furniture

          Water
          Fuel, oil and grease
          Electricity
          Office Supplies
          Gifts to Clients
          Miscellaneous supplies
          Spare parts

          Total External Furniture                                         260
                                                                                       12

                                                                                       14

                                                                                       29
c. Transport (other than personnel mobility)

   Fixed Rate:                                                                150


d. Other External Services

   Bank Account maintenance charges
   PTT costs
   Equipment lease and labor
   Commission and brokerage on sales: rebates
   Honorary and various perks (attorney, bailiff, lawyer, doctor, accountant, auditors and
   Board of Directors)
   Services, Advertising
   Charges and Rents
   Maintenance and Repair: Equipment
                          : Vehicle
   Other miscellaneous services: - Travel
                                 - Tuition and training

   Total External Miscellaneous services                                      130


e. Losses and Expenses

   Insurance: R Civil
                    Theft
                    Fire
                    Life
                    Vehicles
              Corporate Responsibility
                 o Licensing fees, procedures and royalties
                 o Donations
                 o Losses, unrecoverable claims on clients

  Total Losses and Expenses                                                    50


f. Staff Costs

   Head Office
   Production

   Total Staff Costs                                                        2500
                                                                                          12

                                                                                          14

                                                                                          29
         g. Taxes and Duties

                     Taxes on wages
                     Special tax on coffee / cocoa
                     Patent, licensing fees and schedules
                     Thumbnails

            Total, Taxes and Duties                                           1000


         h. Financial Expenses

                     Discount cost
                     Foreign exchange costs
                     Interest on borrowings


            Total Financial Expenses                                              1500


         i. Depreciation and Provisions

            Total investments 20.000.000.000 CFA francs


                      Total Amortization                                     2350


   2. Annual Production/Turnover

         Table of Annual Productions

Description       Year1        Year2      Year3      Year4     Year5     Year6       Year7
Mass              48 000       48 000     50 000     50 000    50 000    50 000      50 000
Butter            49 500       49 500     50 000     50 000    50 000    50 000      50 000
Misc.             58 150       58 500     60 575     60 600    61 000    70 000      75 000
Total           155 650     156 000     160 575     160 600   161 000   170 000     175 000
                                                                                      12

                                                                                      14

                                                                                      29
   3. Production Account Budget

       1. Table of Provisional Operating Account and Outputs

                          Year1 Year2 Year3 Year4 Year5                 Year6     Year7
Sales Turnover (ST)       155 650 156 000 160 575 160 600 161 000       170 000   175 000
Sales                                                         100 000 100 000
                          100 000 100 000 100 000 100 000 100 000
External Furniture            260     260             275     275 300      350
Transport                     300     300     260     350     350 350      350
Other External Services       130     140     350     175     200 200      250
Losses and Expenses            50      50     175      50      50  50       50
Staff/Personnel Costs       2 500   2 500   2 500   2 500       2 750
                                                            2 750        2 750
Taxes and Duties            1 000   1 000   1 000   1 000       1 500
                                                            1 000        1 500
Financial Expenses          1 500   1 500   1 500   1 235     950 655      335
Amortizations               2 350   2 350   2 350   2 350       1 700
                                                            2 100        1 700
Provisions                      0       0   4 435   4 700       5 280
                                                            4 985        5 600
Total Charges                                                 112 885 113 035
                          108 090 108 100 112 620 112 635 112 660
Gross Margins              47 560    47    47 955 47 965 48 340  55     61 965
Corp. Profit/Gen. Inc.              900         0       0      115
                                                                0         21
Tax 35%                      0          0 47 955 47 965 48 340 19 990   688
Net Profit                 47 560 47 900 50 305 50 315 50 440  37 125   40
Cash Flow (CF)             49 910 50 250                       38 825 277
                                                                        41 977
CF / ST %                 32.07% 32.21% 31.33% 31.33% 31.33%           23.99%
                                                             22.84%


       2. Table of Operations Outputs

Gross Operating Margin       47 560   47 900 47 955 47 965     48 340    57 115    61 965
Corp. Profit/Gen. Inc.            0        0      0      0               19 990    21 688
35%/Exempt                                                          0
Net Profits                  47 560   47 900 47 955 47 965     48 340    37 125    40 277
Reserve 15%                   7 134    7 185 7 193 7 195        7 251     5 569     6 042
Dividend expressed as %        80%      80%    80%    80%        80%       75%       75%
Dividend Paid                38 048   38 320 38 364 38 372     38 672    27 844    30 208
Retained earnings             2 378    2 395 2 398 2 398        2 417     3 713     4 028
                                                                                               12

                                                                                               14

                                                                                               29
FINANCIAL STUDY

   1. Conclusion of Financial Forecasts

       a. Unit Summary

For 1 kg of Cocoa                       Official purchase price = 950 000 CFA Francs

Purchase price                                               950 000 CFA francs
Expenses on purchase                                         50 000 CFA francs
Other Expenses                                               80 900 CFA francs
Cost                                                         1 080 900 CFA francs
Average selling price                                        556 500 CFA francs
Gross margins                                                475 600 CFA francs
Sales Tax                                                    000 CFA francs
Net profit                                                   475 600 CFA francs


       b. Projected Funds and their Usage

                         0       An 1       An 2     An 3     An 4    An 5     An 6     An 7
Funds
 Gross Profit                    47 560 47 900 47 955 47 965 48 340            57 115 61 965
 Equity                          14 417 14 480 19 611 19 950   20              20 840 21 250
 Long-Term Debt         25 000   25 000 25 000 25 000 20 565 450               10 880 5 600
 Amortization                     2 350 2 350 2 350 2 350 15 865                1 700 1 700
                                                              2 100
 Total Funds            25 000   89 324 89 730 94 916 90 830 86 755            90 535 90 515
Usage
Invest. + renouv.       20 000
Reimb. of Debt                        0      0 4 435 4 700 4 985                5 280    5 600
Dividends                        38 048 38 320 38 364 38 372 38 672              27     30 208
Duties                                0      0      0      0      0             844     21 688
Aug. Fr + accr.          5 000   51 279 51 410 52 117 47 758 43 098            19 990   33 019
Caisse                                                                         37 421
Total Usage             25 000   89 324 89 730 94 916 90 830 86 755            90 535   90 515



       c. Overall Summary

          1. Operating Account
                                                                                                    12

                                                                                                    14

                                                                                                    29
                               An 1          An 2         An 3      An 4       An 5      An 6      An 7

Sales Turnover               155 650 156 000 160 575 160 600                161 000 170 000     175 000

Net Profit                      47 560      47 900       47 955    47 965    48 340    37 125    40 277

Self-financing Cash Flow        49 910      50 250       50 305    50 315    50 440    38 825    41 977

Reimb. of Debt                         0            0     4 435     4 700     4 985     5 280     5 600

Financial Expenses               1 500       1 500        1 500     1 235       950       655       335

Amortizations                    2 350       2 350        2 350     2 350     2 100     1 700     1 700



             2. Balance Sheet

Current Asset               112 736 113 253 111 890 119 100 121 365                   123 630   125 295

Total Asset                 205 339 206 217 206 388 207 248 238 250                   269 230   297 300

Short-Term Liabilities      125 262 125 837 122 957 132 400 134 900                   137 400   139 900

Long-Term Debt               25 000        25 000       25 000    20 565    15 865     10 880     5 600

Equities                     14 417        14 480       19 611    19 950    20 450     20 840    21 250



             3. Ratios

Operating Profitability    30.56 % 30.71% 29.86% 29.87% 30.02%                        21.84%    23.02%

Current Asset /Short-           0.90        0.90         0.90      0.90       0.90       0.90      0.90
Term Liabilities
Economic Profitability       45.28         45.47        47.45     47.92     48.39       37.14     40.23

Financial Return                6.32        6.34         4.69      4.22       4.16       3.15      3.30

Debt Coverage rate           37.54         37.69         9.90      9.90       9.90       7.58      8.18

Debt/ Equities                  0.58        0.58         0.78      0.97       1.29       1.92      3.79

Liquidity Ratio            32.07% 32.21% 31.33% 31.33% 31.33%                         22.84%    23.99%
                                                                                               12

                                                                                               14

                                                                                               29
                                   GENERAL CONCLUSION


Following the independence of Côte d'Ivoire, the State placed emphasis on the establishment of
new plantations to increase national production. I remember national exercises by SATMACI
geared at maintaining the then village plantations. Our country was the third largest producer
after Nigeria and Ghana.

A few years later La Côte d’Ivoire became the first producer in the world. Today, it produces
more than 1.2 million tons of cocoa annually. This underscores the political will of the country’s
leadership.

Despite that, all production of the broad beans is exported to Europe, America, Asia and Africa.
We believe that Côte d'Ivoire is capable to transform its raw materials and in particular the
product of which we are the first producer in the world: cocoa.

We have therefore initiated this project in order to make our modest contribution to the building
of industrial Côte d’Ivoire.

Everything points to the profitability of the project.

      Government authorities are supporting the upgrading of the sector through the creation of
       several processing and packaging plants, setting up of a guarantee fund and scholarships
       to market coffee and cocoa;
      Supply of raw materials to the plants is assured because of consistency in the production
       of beans;
      Investments are guaranteed by the Ivorian Investment Laws;
      Debt repayment is covered at more than 37.5;
      First year’s operating profit is 30.56%;
      Financial return is greater than 6.32;
      Economic profitability is greater than 45.28

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:14
posted:8/8/2011
language:English
pages:48