1.

0 Executive Summary

Fruit King Enterprise is a registered and licensed commercial farm with a fruit plantation
that will be based in Padang Besar, Perlis. We have done our detailed market research and
feasibility studies and we were able to secure 5 acre of land to start our farm. We will always
leverage on both open field and glass house farming to cultivate a wide species of fruits.
Hence we will construct a structure with walls and roof made essentially of transparent
material in which plants requiring regulated climatic conditions are grown. At Fruit King
Enterprise farm we will be involved in planting the Harumanis plant. In the nearest future,
hopefully within the first five years of officially Fruit King Enterprise farm, we will start our fruits
processing and exporting our fruits and others products to others part of the world. This is
why aside from the fact that we’ve secured the required farm land and most of the farming
equipment and machines .

We also hired employees who are currently undergoing training so as to be able to fit into
the ideal picture of the 21st century fruit farming workforce that we want to build. We are in
the fruit farming business because we want to leverage on the vast opportunities available in
the agriculture industry, to contribute our quota in growing the Malaysia economy, in national
food production, raw materials production for industries, to export agriculture produce from
the Malaysia to other countries and over and above to make profit. Fruit King Enterprise
registered commercial farm that is owned by five members. Fruit King Enterprise owns by
Fahmi, Hanif, Aiman, Nazmi and Khairi. The company will be managed by this five members.

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2.0 Company Description

Fruit King Enterprise purpose was to plant Harumanis treea and sell the fruit direct
from the farm. This company will be manage by five members. Mr. Aiman act as Chief
Executive Officer (CEO) in this company while Mr. Fahmi as a general farm manager, Mr.
Hanif will handle administrator, crop cultivation manager will manage by Mr. Khairi and
processing and packaging manager is Mr. Nazmi. This company will be located at Padang
Besar, Perlis.

2.1 Vision

The company's vision is to become a progressive bumiputera company in the

agricultural sector that encompasses the growth of the best products and services through
innovation, value, quality and commitment to stakeholders.

2.2 Missions

The company's mission is to provide quality and fragrant Harumanis fruit to achieve
a hundred percent user satisfaction level.

2.3 Company Objective

The goal or objective of the company is :

1. Manage more efficiently and professionally with customers.

2. Management of business according to the company's procedures through work ethics and
pure value creation between suppliers and customers.
3. Provide quality service by implementing various types of effective marketing techniques to
achieve maximum customer satisfaction.
4. Always be sensitive and ready for any changes that take place in order to improve service
quality from time to time.

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5. Consistent in handling ordering and purchasing issues so product delivery can be
channeled to customers immediately.

2.4 Our Business Structure

Fruit King Enterprise intends to build a standard business from the onset hence the need
to follow due process when it comes to planing the structure for the business. We will ensure
that we put the right structure in place that will support the kind of growth that we have in
mind. We will ensure that we hire people that are qualified, honest, customer centric and are
ready to work to help us build a prosperous business that will benefit all our stake holders. As
a matter of fact, profit-sharing arrangement will be made available to all our senior
management staff and it will be based on their performance for a period of 8 years or more.

In view of that, we have decided to hire qualified and competent hands to occupy the
following positions:

a. Chief Operating Officer

b. General Farm Manager
c. Administrator/Accountant
d. Crop (Fruits) Cultivation Manager/Supervisor
e. Fruits (Juices) Processing and Packaging Plant Manager/Supervisor
f. Sales and Marketing Executive
g. Front Desk Officer

2.5 Roles and Responsibilities

2.5.1 Chief Executive Officer (CEO):

i. Increases management’s effectiveness by recruiting, selecting, orienting, training,

coaching, counseling, and disciplining managers; communicating values, strategies, and
objectives; assigning account-abilities; planning, monitoring, and appraising job results;
developing incentives; developing a climate for offering information and opinions.
ii. Creates, communicates, and implements the organization’s vision, mission, and overall
direction – i.e. leading the development and implementation of the overall organization’s
strategy.
iii. Responsible for fixing prices and signing business deals.

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iv. Provides direction for the business.
v. Responsible for signing checks and documents on behalf of the company.
vi. Evaluates the success of the organization.
vii. Responsible for overseeing the accounting, costing and sale of farm produce after
harvest.
viii. Ensures that farming goals are achieved, the most efficient resources (manpower,
equipment, tools and chemicals et al) are utilized and different interests involved are
satisfied. Responsible for preparing financial reports, budgets, and financial statements
for the organization.
ix. Responsible for overseeing the smooth running of HR and administrative tasks for the
organization.
x. Oversees the smooth running of the daily farming activities across the various farming
sections.
xi. Responsible for the planning, management and coordinating all farm activities across the
various sections.
xii. Supervises other section managers.
xiii. Ensures compliance during project executions (especially in the construction of
greenhouses).
xiv. Provides advice on the management of farming activities across all sections.
xv. Responsible for carrying out risk assessment.
xvi. Uses IT systems and software to keep track of people and progress of the growth of
crops.

2.5.3 Administrator/Accountant

i. Responsible for overseeing the smooth running of HR and administrative tasks for the
organization.
ii. Defines job positions for recruitment and managing interviewing process.
iii. Carries out induction for new team members.
iv. Responsible for training, evaluation and assessment of employees.
v. Accountable for preparing financial reports, budgets, and financial statements for the
organization.
vi. Responsible for financial forecasting and risks analysis.
vii. Responsible for developing and managing financial systems and policies.
viii. Responsible for administering payrolls.
ix. Ensures compliance with taxation legislation.
x. Handles all financial transactions for the company.
xi. Serves as internal auditor for the company.

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 2.5.4 Crop (Fruits) Cultivation Manager/Supervisor

i. Responsible for the cultivation of fruits such as Harumanis fruit.

ii. Supervises other workers within the department.
iii. Works closely with the General Manager to achieve the organizations’ goals and
objectives.

2.5.5 Fruits (Juices) Processing and Packaging Plant Manager/Supervisor

i. Responsible for managing the fruits (juices) processing and packaging section of the
business.
ii. Supervises other workers within the department.
iii. Works closely with the General Manager to achieve the organizations’ goals and
objectives.

2.5.6 Sales and Marketing Officer

i. Identifies, prioritizes, and reaches out to new partners, and business opportunities.
ii. Identifies development opportunities; follows up on development leads and contacts.
iii. Writes winning proposal documents, negotiate fees and rates in line with company
policy.
iv. Responsible for handling business research, marker surveys and feasibility studies for
clients.
v. Develops, executes and evaluates new plans for increasing sales.
vi. Helps to increase sales and growth for the farm.

2.5.6 Front Desk/Customer’s Service Officer

i. Welcomes guests and clients to the farm by greeting them in person or on the telephone;
answering or directing inquiries.
ii. Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the
client with a personalized customer service experience of the highest level.
iii. Through interaction with clients on the phone, uses every opportunity to build client’s
interest in the company’s products and services.
iv. Consistently stays abreast of any new information on the company’s products,
promotional campaigns etc. to ensure accurate and helpful information is supplied to
clients.
v. Receives parcels / documents.

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vi. Handles any other duties as assigned by the line manage.

3.0 Product and Services

The main product for our company are producing and planting Harumanis fruits and
become the supplier in Malaysia. Our company also produce Harumanis ice cream, jus &
cordial and cake product. We are also planning to make a cafe in Harumanis farm. Customer
can come to the cafe and enjoy Harumanis products while enjoying the beautiful scenery.
Customer also will have chance to pick Harumanis fruits from Harumanis trees. We want to
have a few branches in entire Malaysia that been handle by our agent to help us to supply
Harumanis fruits to customers. In order to get closer to customers, we also offers postal
services to the customer and cash on delivery for customer in Perlis.

To produce this product, we need to plan strategies in order to maintain the demand of
our products. The main problem about Harumanis fruit is it can only produce fruit once a year.
To solve this problem, we are planning to plant Harumanis trees in the glass house to ensure
the tree can keep producing fruits and meets the demand. Glass house is the best planting
concept because Harumanis plant needs 38 Celsius and 2,700mm minimum rainfall. The
glass house is also equipped with watering system. Glass house also can keep the fruits from
pest and disease.

The second problem for Harumanis is we can’t keep the fruit for a long time after
plucking it from the tree. So we have to make a timing record for each fruit to observe the
condition of the fruit to ripe and ready to be plucked. For postal services, the fruit need to be
pluck a few day before the fruit ripe and put it in a box. So the fruits will be in a good condition
and ready to eat when the time receive by the customer.

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4.0 Marketing Plan

4.1 Marketing Goals and Objectives

Our company have listed marketing goals in order to keep our company bigger and
successful. Our first goal is to increase our sales and grow our market share. In order to
achieve this we need respond and handle our customers fast and more effective. For
example, we have customer service to handle customer orders and answer their questions.
Next, we will launch new products and services. Our company not only concentrated to
supply Harumanis fruit but we also make other product such as Harumanis ice cream jus &
cordial and cake. We believe, this strategies will attract more customer to buy our products.
Last but not least, our marketing goals are to target new customers and increase profit.

4.2 Competition and Market Research

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 The competitor in this business is small because Harumanis only planted in Perlis. So,
our company would not have problem to competing with other entrepreneurs. Our target
market is not only concentrated to Perlis people. But we aim to supply Harumanis fruit to all
over Malaysia. For the next 5 to 10 years ahead, we aim to export our fruits to other country
such as Japan, China and Korea.

4.3 SWOT Analysis

4.3.1 Strengths

Harumanis is a well know fruit among Malaysian and it signature fruit of Perlis. We
believe that our product will hit the market. Our farm was located beside the main road to
Padang Besar and it is at a strategic place and will attract customer to shopping at
Padang Besar, stop at our farm first and buy our product.

4.3.2 Weaknesses

The areas of weakness in our company's operations, such as financial and

management inexperience. In order to keep this business successful, we need a stable
capital financing. To build glass house and machinery, need a lot of money. Capital
financing, credit, loans and other financial debts should be identified, with strategies to
control their effect on our business. Our business need bank loan or investor to invest to
our business. Our business also manage by inexperience management. To deal with
this problem, we have to hire experience worker and train our workers to improve their
work. Poor performance job will mean lower than expected profits which will lead loosing
a lot of the money.

4.3.3 Opportunities

Our business opportunities is our product will be sold online. This will easier for the
customer to get our product by post. Our Harumanis fruit are always fresh and the best in
Perlis as is been plant in glass house. Glass house will protect the fruits from pest to eat
the fruits. Customer also can get our product at Giant Hypermarket, it is the bigger
opportunities for our company compare to others company.

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 4.3.4 Threats

The most the most feared threat in our business is market forces. More competitor
entering the low price for the same product. So we have to plan strategies to beat the
competitor. Second threat is rising energy costs. After labor, land, and often water, the
next largest cost of most farming operations is energy. It takes fuel to drive tractors and
combines. It takes energy to manufacture and transport fertilizers. It takes energy to
heat, light or cool greenhouses, and it takes energy to chill, store and transport food. As
we move into an era of “peak oil,” it becomes difficult to simply pass along these rising
costs to consumers.

4.4 Target Customer

Target customers, better known as a target market, is a group of customers that a firm
plans to reach with marketing efforts. Target customers may be identified for a business,
brand, product, location, sales or marketing strategy. Our target customer is local market as
our farm is located at Perlis to target local residents. Local marketing is a good marketing
strategy for our business that targets customers by a finely grained location such as a city or
neighborhood. It is used by our businesses to conserve resources and develop unique
advantages by reaching the customers closest to them. Malaysian people would love to try
our product especially people who live in Perlis. For other state, they can find our nearby
agent and can buy our product form them. For the next 5 to 10 years ahead, we aim to export
our fruits to other country such as Japan, China and Korea.

4.5 Marketing Channel To Be Used

4.5.1 Manufacturer Directly to Customer

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 Manufacturer produce product such as Harumanis fruits,jus & cordial and cake
products and sells them to the consumer directly with no intermediary, such as a
wholesaler, agent or retailer. Goods come from the manufacturer to the user without an
intermediary or middleman. However, this channel only been apply to customer around
Perlis.

4.5.2 Manufacturer to Retailer to Consumer

Purchases are made by the retailer from the manufacturer and then the retailer sells
the merchandise to the consumer. Our company also supply Harumanis fruits and other
product to Giant Hypermarket in Perlis. This is a great opportunity to enter bigger market
and meet more demand and customers.

4.5.3 Manufacturer to Agent to Customer

Manufacturer produce product such as Harumanis fruits, jus & cordial and cake
products and sell it to our agent and will be sell to customers. This channel concept only
been apply for outside Perlis area.

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4.6 Marketing Budget

Every business requires a budget in so many aspects of it, especially in the marketing
aspect; therefore, marketing budget is very vital because it is a projection of estimated
promotional costs of your business. Business marketing budget requires strategic plans in
order to properly play the role of interpreting how much money would be spent on promoting
such as marketing communications, marketing staffs, and advertising. We had list our our
business marketing budget on the table below.

Figure 4.1: Table of Marketing Expense Budget

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5.0 Operational Plan

5.1 Facilities And Space Needed

The farm is located in Padang Besar, Perlis that suitable environment to planting
Harumanis trees. The place is at north of peninsular Malaysia.

The operation will utilize:

i. One large greenhouse

ii. Filters, water treatment devices.

iii. Backwash facilities.

iv. Outdoor vegetable facilities.

v. Business office building.

vi. One stop cafe stall

An additional portion of the operation will be the manure composting facility. Local and
regional dairy operations have trouble with manure accumulations, and the company hopes to
enter into contracts in removing the manure. Farmers Group will then turn this into a saleable
product. The company plans to supply the region's nursery outlets with a top-quality, premium
garden and soil amendment product for area horticulture. The 5 acre landed space is needed
to build the operation facilities and planting 500 of Harumanis trees.

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5.2 Technology Need

The company is currently seeking contact with Malaysia Perlis Universities (Unimap) in
order to learn about and acquire new hybrids of mango that are hardier and grow faster in our
local microclimates. These and other available species and systems will be constantly
tracked.

In addition to the above, the company is seeking contacts with Malaysian Agricultural
Research and Development that are involved in greens, and will continue the quest for the
best flavored, large, and firm fall and winter mango.

Currently, Farmers Group is conducting research to test certain clay-sand-manure

mixture levels to obtain better, cheaper bedding and agronomic soil mixtures that are more
effective than the standard used in the industry in Malaysia.

5.3 Equipment Need

The latest technology machinery is need such as tractor, heavy machinery, water
treatment device, watering system and all other automatic system to boost the production and
easy to operate and maintenance the farm.This process line can handle all kinds fruits with
similar characteristic. This processing line has high level of automation, low labour intensity,
ease of operation, safe functioning and low operation cost. The line adopts hygienic
processing, it can be cleaned thoroughly and has high level of sanitation.The king of the fruits,
Mango is one of the most popular, nutritionally rich fruits with unique flavour, fragrance, taste,
and health promoting qualities, making it numero-uno among new functional foods, often
labeled as "super fruits." Mango is one of the delicious seasonal fruit grown in the tropics. The
tree is believed to have originated in the sub-Himalayan plains of Indian subcontinent.

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 Figure 5.1: The machinery line need in farm.

5.4 Supply Chain Management

Supply Chain Management in agriculture is defined as “The management of movement

of agricultural commodities, from the farm through the rural and urban markets to reach the
doorsteps of end consumer- both household and industrial consumer; consists of various
players, starting from the agricultural producer, through the middle men, commission agents
and traders, the bulk purchasers or procurers, millers or intermediary processor, warehousing
agents, or cold storage space providers and transporters, through whom material finally

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reaches either retail distribution system for raw consumption or the food processing industries
where it goes through the value addition processes and moves through 3 a distinct and a
separate supply chain to reach the targeted consumers” (Ramana & Ajoy, 2005).

Figure 5.2: Supply Chain Management Diagram

5.5 Quality Control Check

Quality control in agricultural value chains and external certification. Imagine a world in
which every box of Cheerios you opened tasted different. In developed countries, quality
control measures to ensure that food products meet certain safety and quality standards play
a key role in agricultural processing. There is a need to develop quality awareness in all farm-
workers, food processors and handlers. These people have direct contact with the food and
can be source of contamination. They must be trained on proper ways of maintaining
personal hygiene and health.

6.0 Management And Organization

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 CEO
MUHAMAD ALIF AIMAN
BIN JALALUDIN

GENERAL FARM
MANAGER
MUHAMAD AMIRUL
FAHMI BIN AMRAN

ADMINISTRATOR/ACCO CROP CULTIVATION PROCESSING AND

UNTANT MANAGER PACKAGING MANAGER
MUHAMMAD HAFIZUL NIK MUHAMMAD KHAIRI NAZMI DANIAL BIN
HANIF BIN ASAAD BIN NIK MUSTAFA SOFFIAN AFFENDY

SALES AND PRODUCTION

MARKETING MANAGER
EXECUTIVE

Figure 5.3: Organization Chart Diagram

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7.0 FINANCIAL PLANNING

7.1 INCOME AND EXPENSES

We estimated that for the first starting 2 years of our business of Fruit King Enterprise, the net
profit is RM1 391 750.00 after calculating and discussing all the possibilities requirement such
as asset and expenses. The amount of capital for our first year of opening our business is
RM76 250.00. The table below shows the cost of asset and expenses. For the first year of
our business we are planning to plant only 250 units of Harumanis and 250 units more on the
second year.

Asset Cost (RM)

First Year Second Year

1. Harumanis Saplings (500 units) 7 500.00 (250 units) 7 500.00 (250 units)

2. Used Van (2 units) 25 000.00 (1 unit) 25 000.00 (1 unit)

3. Shop 30 000.00

4. Cafe 100 000.00

5. Motorcycle 3 000.00

6. Jus Blender (3 units) 450.00

7. Ice Cream Machine 5 000.00

8. Garden Dining Set (10) 4 000.00

9. Used Farm Tractor 10 000.00

10. Sprayer Pump (5 units) 750.00

76 250.00 141 950.00

Total

∑ = 218 200.00

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 Expenses Cost (RM)

Cost Item per Month First Year Second Year

1. Fertilizer 25kg/pack (RM200) 1 000.00 (5 unit) 1 000.00 (5 unit)

Wages
2. (1 Worker = Rm1000/Month) 36 000.00 (3 Workers) 120 000.00 (10 Workers)

3. Insecticide 1000ml/unit (100 units) 2 750.00 (50 unit) 5 500.00 (100 unit)

4. Fuel (Petrol and Diesel) 5 000.00 5 000.00

5. Land RM7000/month (5 acres) 84 000.00 84 000.00

6. Utilities 12 000.00 36 000.00

7. Packaging 3 600.00 7 200.00

Maintenance (Tractor, Motorcycle and

8. Van, Café, Shop) 5 000.00 7 000.00

116 950.00 265 700.00

Total ∑ = 382 650.00

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 FRUIT KING ENTERPRISE

STATEMENT OF COMPREHENSION INCOME FOR THE FIRST 2 YEARS

Estimate fruit growth (750 unit trees)
Estimate fruit loss/rotten
Estimate price/kg
Estimate sold fruit(kg) for 2 years (90%)
Estimated total weight of fruit for a tree
75 000 kg for 2 years (100%)
7 500 kg for 2 years (10%)
RM30
67 500 kg = RM 2 025 000
100 kg

SOCI RM RM

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Sales
Estimate fruit growth(kg) for 2 years (100%) 2 250 000.00
Estimate fruit loss(kg) for 2 years (10%) (225 000.00)
2 025 000.00

Cost of Goods Sold

76 250.00
Opening Inventory
141 950.00
Second Year Inventory
- (218 200.00)
1 806 800.00
Gross Profit

Expenses
Fertilizer
2 000.00
Wages
156 000.00
Insecticide
8 250.00
Fuel
10 000.00
Land Loan
168 000.00
Utilities
48 000.00
Packaging
10 800.00
Maintenance (Motor, Van, Tractor, Café, Shop)
12 000.00
-(415 050.00)
Net Profit
1 391 750.00

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8.0 BUSINESS PLAN SUMMARY

Fruit King Enterprise is a new company in Padang Besar, Perlis that provides
Harumanis fruit and the product from the fruit such as ice cream, jus and cordial. This
company consist of 5 chairmans which are the shareholders and founder of the Fruit King
Enterprise. We are an expertise in Harumanis and our business in mainly focusing on
Harumanis. We started the business by loaning a land in Padang Besar. Fruit King Enterprise
is also providing service such as Cash On Delivery(COD) and postal service to our customer.
We have our own farm which is 5 acres including a café and shop that sells Harumanis
products located in the farm. In the future, Fruit King Enterprise is planning on marketing to hit
the worldwide market in exportation, own a farm land as an asset, including global website
promoting and online advertising. Our mission and vision will always about satisfying our
customer needs and demands. In order to reach the objective and to be a well-known
company, we will always try to improve our management and our service. We will compete
with other company to produce a quality product, world-class service and support. With the
starting capital of RM76 250 to start our business and 500 units of Harumanis trees for the
first 2 years, we always hope to grow our business and open more branches all over the
world and reach our target profit and business objectives.

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9.0 Mentor

9.1 Mentor Profile

Figure 9.1: KHN Logo

Our mentor is Kamisah bt Osman (59), Nordin bin Ishak (60). They both are Harumanis
entrepreneurs. They owned a business named KHN Harum Manis. KHN Harum Manis was
located at Lot 3, Jalan Masjid Lama, Mata Ayer, Perlis Malaysia. They had involved in this
industry for about 8 years. Many challenges and obstacles they had been through in order to
be successful in this business. After they were retired working with the government sector,
they decided to make a business. At first, the business were just for fun and to fill their free
time.
They started to planting Harumanis trees on 2011. They had planted about 200
Harumanis trees. 2 years later, the trees started to grow and produce fruits. Jabatan
Pertanian Perlis helped them to provide fertilizer and pesticides. Other organization such as

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Mada Perlis, Peladang Perlis and other organization also involved to help in this project. The
other agency that helped them to sell their products is FAMA. FAMA helped them by buying
their Harumanis fruits and also promoting their products. KHN Harum Manis was not only
concentrate in supplying and producing Harumanis fruits, they were also involved in poultry
farming. Their next project is to supply and produce pineapple. They had already started
planting pineapple in their land.

Figure 9.2: Harumanis Trees

Figure 9.3: Goats that available at KHN Harum Manis

Figure 9.4: There are about 200 Harumanis trees planted by KHN Harum Manis .

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 A Harumanis tree can produce about 200 to 300 fruits for one season. KHN Harum
Manis can get income about RM10 000 for a season. The price for 1kg of Harumanis fruits is
RM 25. Our mentors have teach and guide us to start a business. They also had share their
strategies and other tips in order to keep a sustain business and successful business.

10.0 Appendices

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25