Bevel-helical speed reduction gearboxes B4 size version B D BSH size and version A C B4FH-25-C

Flender/Flender Gear Units/Bevel-helical speed reduction gearboxes B4

would be sold to the IVJ workers under long-term contract to sell cane to the mill as "colono". The total projected cultivated land area of the IVJ project was 3,0 manzanas, broken down as follows: Mzas Sugar cane 2,0 Forestry (Eucalyptus) 1,0 Total 3,0 The table on the following page shows the land currently held by IVJ and its independent growers ("colonos"), and the projected increase in land required to complete the project. The table reflects the effect of returning lands to their previous owners, but does not reflect the sale of land to IVJ workers. VI-3 q2 1ngenioVictoria De Julio (IVJ) Land Distribution LTorstrGrndToa IvJ 8,9 3,0 1,9 3,2 6 3,8 1,1 3,6 1,7 Growers 4,4 1,2 5,6 9 2 1,2 5,3 1,4 6,8 1,3 4,2 1,5 4,1 8 5,0 1,5 5,0 2,5, Required -- 2,4 2,4 -- 4,9 4,9 -- 7,4 7,),$ Plan 1,3 _.. 6,6 2,0 -4,1 -. 5,8 1,0 1,5 1,4 3,0 .. ,, .... . Pending Litigation The Legal Department of CONAZUCAR was requested to perform search for any existing or potential Itigation against Victoria de Julio. CONAZUCAR has not notified us of any Such pending litigation. VI -4 ., \ VII. CURRENT FINANCIAL CONDITION . Earnings and Cash Flows An estimated 1/9 statement of profit and loss for Ingenio Victoria de Julio appears on the following page. The statement of profit and loss is estimated based on cost, production, and price information provided by management of IVJ and CONAZUCAR. TI. statement of profit and loss was not prepared by IVJ management. IVJ is projected to have an after-tax loss of 4.7 million cordobas on sales of 5.5 million cordobas for fiscal year 1/9 (July 1, 1 -June 3, . Net cash flow for the year is estimated to be 1. million cordobas. The largest cost item for the mill is salaries and benefits which constitute 4% of total cash operating costs for the year. These high personnel costs, combined with poor agricultural yield of 3.2 tons of cane per manzana, contributed to the poor financial performance. . Balan