JSC "ALCOM"

Description of the company.

In 14.10.1993 j. JSC "ALCOM" have been registered in the Almaty department of the statistics and analysis. Main activities of JSC "ALCOM" are purchasing the oil seeds, producing corn seeds; preserving crops, selling the bread products.

The structural units of JSC "ALCOM"

1. Chundja seed storing enterprise for 56000 t technical place, corn and other crop processing and storing and corn evaluation works;

2. Meal complex for 25 t per 24 hours;

3. Department for bread products producing for 3000 bread in 24 hours;

4. Department for corn sticks for 70 kg per shift breaks in one shift;

5. Combynutrition producing department, 2000 kg per 24 hours.

Credit history of the Company

In 1995-1997 JSC "ALCOM" demanded only short-term credits to full working capital for 3-4 months. The payment for all provided credits was done at proper time.

Investments

The receipt of credit means in the sum $ 3000000 USD is planned in such conditions:

1. The credit must be taken for the period of 5 years, the means will start the repayment in 4 years;

2. Privileged period for the basic part of credit - 1 year after provision;

3. Percentage rate - 5% a year;

The short project description

This project considers building corn processing factory for producing syrup and fodder on the basis JSC "Yrys" (Chundzhinsky elevator). The plant will be built in village Chundza, Uygyrsky , Almaty region. Productivity of equipment - 501 corn per day, dayly output of products - 30t of starch syrup and 24t of fodder. Schedule of work - 24 hours per day, 320 days per year.

The condition of goods consumption market

The main production of starch of starch syrup processing factory

1. Starch syrup production: 30t in 24 hours, 9600t a year;

2. Fodder production, 12% of moisture: 24t in 24 hours, 7680t a year.

The main consumers of syrup in the Republic of Kazakhstan are 5 confectioneries, situated in Almaty, Kostanai, Shimkent, Karaganda, Aktubinsk. The Demand of confectioneries and to the same sum reduces the import of syrup from Kyrgizstan, Russia and Ukraine for more higher price, than it is planned by this project.

The main consumers of fodder will be stock-raising farms, agricultural farms, cattle-breeders of Uigur and other regions, poultry farms, which at present use corn seeds for the produsing mixed fodder and considered to be competitors for raw materials of planned syrup factory.

The realization of fodder to stock-raising farms and large agricultural farms is foreseen on the basis of long-term agreements and to private calte-breeders and litle farms on the basis of cash payment.


Schedule of investments use

Invest ments

1 month

2 month

3 month

4 month

5 month

6 month

7 month

8 month

Total

Sum

744900

729900

759200

269600

276600

166800

41000

12000

3000000


Proposed time table of repayment of the credit

Years

1

2

3

4

5

Total

Payback of main sum,

$

0

750000

750000

750000

750000

3000000

Payback of (5%),$

150000

150000

112500

75000

37500

525000

Unrepayed sum of credit, $

3000000

2250000

1500000

750000

0

Total sum for Payback,$

150000

900000

862500

825000

787500

3525000


The main indexes of effectiveness of the project

1. Payback period - (PBP) comprise 4 years;

2. Profitability Index-(PI) =0,25;

3. Net Provided Value (NPV)= $748572;

4. Inside Rentability Rate (IRR) = 22,37%;

5. Accounted Repayment Rate (ARR) = 15,0%;

6. Break Even Pint (BEP) =$1190703 a year;

7. The rate of rate of liability = 64%;

8. Investment Risks = 36%.

Quarantines of Credit Repayment

Quarantined obligation for repayment of the means to creditor is the pledge of

following property: the basic means of Chundja Elevator and purchased Technological equipment of syrup starch factory and ready products ofJSC Alkom.