AN ENGINEERING VALUATION ON AN INDUSTRIAL

ATTACHMENT WITH INTERGRITY FARM LTD , SAGAMU, OGUN STATE

ADESANYA FELIX ADEOYE

(AGE/2017/014)

DEPARTMENT OF AGRICULTURE AND ENVIRONMENTAL ENGINEERING,

FACULTY OF TECHNOLOGY ,

OBAFEMI AWOLOWO UNIVERSITY

ILE IFE, NIGERIA

NOVEMBER 2023

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 Department of Agriculture and Environmental Engineering,

Obafemi Awolowo University,

Ile-Ife, Osun State.

1st Noveember, 2023

The Coordinator,

AEE 400 – SIWES II,

Department of Agricultural and Environmental Engineering,

Obafemi Awolowo University,

Ile-Ife, Osun State, Nigeria

Dear Sir,

LETTER OF TRANSMITTAL

This report was written as part of the requirements for grading of AEE 400 – Student Industrial Work

Experience Scheme II. It contains a complete but very brief description of my experience during the

period of the industrial attachment.

I have written this based on all the technical skills and experience acquired so far. Kindly accept this

humble effort of bringing forward this report.

Yours Faithfully,.

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 ADESANYA felix adeoye

AGE/2017/014

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 CERTIFICATION

This is to certify that this report is a detailed account of Students Industrial Work Experience Scheme

(SIWES) carried out by ADESANYA FELIX ADEOYE with matriculation number AGE/2017/014 of the

department of Agricultural and Environmental Engineering, Obafemi Awolowo University, Ile Ife , Osun

State, at INTEGRITY FARMS LIMITED for a period of six months and has been prepared in accordance

to regulations guiding the preparation of a technical report.

……………………………… ………………………………

Adesanya felix adeoye Date

AGE/2017/014

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 DEDICATION

I deeply express my heartfelt gratitude to the Almighty God for his infinite mercies and

Unreserved grace from the beginning of this Student Industrial Work Experience Scheme

(SIWES) to the end.

I would like to record my sincere gratitude to my veteran supervisor who is also the Farm manager of the

organization Mrs. Toyin Fadayomi who due to the unwavering mentorship and guidance made my

student industrial work experience scheme attachment with the company a worthwhile and Educative one.

A dedication also goes to the General manager of INTEGRITY FARMS LIMITED Engr. Jide. O. who

made the attachment a success and never left me alone.

Bountiful Dedications to my Parents and all those who have contributed positively to my

life from infancy till now

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 ACKNOWLEDGEMENT

I would like to acknowledge with sincere appreciation the efforts of my parents, friends, Engr.

OBIAGE O, mummy Eunice fadayomi, and the entire staff of Intergrity farm Limited for their

contribution in making this (SIWES II) a successful program.

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 ABSTRACT

INTERGRITY FARM Ltd is a Agricultural engineering company . In order to carry out the

valuation of the assets owned by Intergrity farm Ltd.; the declining balance method was used.

All items were listed in a table and the summary of the valuation analysis was tabulated. After

concluding the valuation of various assets owned by the company, an approximate value of thirty

million, one-hundred and forty-two thousand, fifty naira

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 TABLE OF CONTENT

LETTER OF TRANSMITTAL ...................................................................................ii

CERTIFICATION ………………………………………………………………… iii

DEDICATION ……………………………………………………………………… iv

ACKNOWLEDGEMENT ............................................................................................... v

ABSTRACT .................................................................................................................. vi

TABLE OF CONTENTS ...................................................................................................x

LIST OF FIGURES ........................................................................................................ xi

LIST OF TABLES ......................................................................................................... xii

LIST OF ABBREVIATIONS ......................................................................................... xiii

CHAPTER ONE: INTRODUCTION ............................................................................. 1

1.1 Company Profile .................................................................................................. 2

1.1.1 Company organogram ................................................................................... 2

1.1.2 Equipment and infrastructure ........................................................................ 2

1.1.3 Services ......................................................................................................... 2

1.2 Aim of the Report ................................................................................................. 5

1.3 Scope of the Report .............................................................................................. 5

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CHAPTER TWO: LITERATURE REVIEW ................................................................ 6

2.1 General Introduction ............................................................................................ 6

2.2 Terms Used in Valuation ...................................................................................... 8

2.3 Engineering Valuation .......................................................................................... 9

2.3.1 Purpose of engineering valuation .................................................................. 10

2.3.2 Factors affecting value of property ............................................................... 12

2.4 Methods of Engineering Valuation .................................................................... 12

2.4.1 Replacement cost valuation method (insurance purpose) ........................... 14

2.4.2 Depreciated replacement cost method ........................................................ 16

2.4.3 Open market valuation or disposal method ................................................ 17

2.5 Method of Valuation Specific to the Company ..................................................17

2.6 Present Method in Practice in the Company ...................................................... 18

2.7 Depreciation ....................................................................................................... 19

2.7.1 Straight line method .................................................................................... 21

2.7.2 Declining balance method .......................................................................... 23

2.7.3 Sum of the year digits method .................................................................... 24

CHAPTER THREE: METHODOLOGY .................................................................... 25

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3.1 List of Engineering Equipment Asset to be Evaluated ...................................... 25

3.2 The Procurement History and Costs ................................................................... 25

3.3 Valuation Analysis ............................................................................................. 25

3.3.1 Valuation computation for pipe green house …………………...................... 30

3.3.2 Valuation computation for wooden green house ........................................ 30

3.3.3 Valuation computation for (1000 liters) tank ........................................... 30

3.3.4 Valuation computation for ( 3000 liters ) tank ............................................... 31

3.3.5 Valuation computation for submersible tank ............................................... 31

3.3.6 Valuation computation for centrifugal tank .................................................... 31

3.3.7 Valuation computation for drip irrigation tank ( main line , drip line and other

accessories) ................................................................................................................... ….32

3.3.8 Valuation computation for 5.6 KW,5.6 KVA Suzuki gasoline

generator .............................................................................................................................. 32

3.3.9 Valuation computation for 2.8 KW , 2.8 KVA Elepaq gasoline

generator .............................................................................................................................. 32

3.3.10 Valuation computation for 2.5 KW, 2.5 KVA Suzuki gasoline

generator ................................................................................................................................ .33

3.3.11 Valuation computation for 1.5 KW , 1.5 KVA Elepaq gasoline

generator .......................................................................................................................,….... 33

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3.3.12 Valuation computation for shovel ...................................................... 33

3.3.13 Valuation computation for rake …………........................................ 34

3.3.14 Valuation computation for hoe ....................................................................... …34

3.3.15 Valuation computation for wheel barrow ............................................................ 34

3.3.16 Valuation computation for nursery tray ............................................................... 35

3.3.17 Valuation computation for solar panel inverter .................................................. 35

3.3.18 Valuation computation for knap sack sprayer .................................................. 35

3.3.19 Valuation computation for prepaid meter ................................................... 36

3.3.20Valuation computation for white board ..................................................... 36

3.3.21 Valuation computation for measuring scale ................................................... 37

3.3.22 Valuation computation for basket ................................................... 37

3.3.23 Valuation computation for venturi pipe .................................................. 37

CHAPTER FOUR ………………………….…………………………………………38

RESULTS AND DISCUSSION ................................................... 38

CHAPTER FIVE: CONCLUSIONS AND RECOMMENDATIONS ....................... 42

5.1 Conclusion .............................................................................................................. 42

5.2 Recommendation ................................................................................................ 42

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REFERENCES..................................................................................................................... 43

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 LIST OF FIGURES
Figure 1.1: Company organogram…………………………………………………………3

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 LIST OF TABLES

Table 1.1: Facilities at Integrity farm Ltd …………………………………………. 4

Table 3.1: List of company assets to be valued …………………………………27

Table 3.2: Procurement history of assets to be valued …………………………29

Table 4.1: Analysis results ……………………………………………………41

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 LIST OF ABBREVIATIONS

BV Book Value

EUV Existing Use Value

LTD. Limited

MACRS Modified Accelerated Cost Recovery System

NBV Net Book Value

PW Present Worth

SL Straight Line

SYD Sum of the Year Digits

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