Provision of Software Services/Products to Home Users

Feasibility StudyMuhammad Kashif Arslan

E/M-SPR10-014

i

ii

1 EXECUTIVE SUMMARY.............................................................................................................1

3 PURPOSE OF THE DOCUMENT................................................................................................2

4 OPPORTUNITY RATIONALE....................................................................................................3

5 INDUSTRY STRUCTURE.............................................................................................................3

5.1 CLASSIFICATION OF INDUSTRY........................................................................................................................55.1.1 Product/Service Based Classification........................................................................... 65.1.2 Market Based Classification......................................................................................... 7

6 MARKET ANALYSIS....................................................................................................................9

6.1 MARKET DEMAND...............................................................................................................................................96.2 OPPORTUNITIES IN MARKET...........................................................................................................................10

7 QUALITY MANAGEMENT.......................................................................................................11

7.1 MANAGERIAL BEST PRACTICES................................................................................................................. 117.2 OBJECT ORIENTED DESIGN AND QUALITY ASSURANCE.......................................................................117.3 MARKETING STRATEGY..................................................................................................................................12

8 PRODUCT/SERVICE..................................................................................................................12

8.1 SERVICES............................................................................................................................................................12The main technological services that will be offered, by category, include:...................................128.1.1 Systems Integration................................................................................................... 128.1.2 Technology Outsourcing...............................................................................................138.1.3 Business Process Outsourcing (BPO)............................................................................138.1.4 Customized Application Development............................................................................138.1.5 IT and Business Processes Consultancy.........................................................................138.1.6 Information Security.................................................................................................. 148.1.7 Products Based Solutions........................................................................................... 14

8.2 INDUSTRIES...................................................................................................................................................... 158.2.1 Leasing and Finance.................................................................................................. 158.2.2 Insurance.....................................................................................................................158.2.3 Banking........................................................................................................................158.2.4 Government.................................................................................................................158.2.5 Defence........................................................................................................................158.2.6 Manufacturing.............................................................................................................168.2.7 Health..........................................................................................................................168.2.8 Education.................................................................................................................. 168.2.9 Information Technology...............................................................................................16

9 HUMAN RESOURCES................................................................................................................16

10 MACHINERY & EQUIPMENT.................................................................................................17

10.1 IT EQUIPMENT....................................................................................................................................................1710.2 FURNITURE AND FIXTURE...............................................................................................................................1710.3 VEHICLE.............................................................................................................................................................17

11 INFRASTRUCTURE...................................................................................................................17

12 PROJECT DETAIL......................................................................................................................18

12.1 PROJECT COST....................................................................................................................................................1812.2 PROJECT FINANCING........................................................................................................................................1912.3 PROJECT VIABILITY........................................................................................................................................ 1912.4 PROPOSED BUSINESS LEGAL STATUS.........................................................................................................19

13 ASSUMPTIONS.............................................................................................................................19

13.1 REVENUE ASSUMPTIONS................................................................................................................................ 1913.2 OPERATING EXPENSES ASSUMPTIONS.........................................................................................................19

13.2.1 Working Capital Assumptions.......................................................................................2013.2.2 Accounting Depreciation on Assets...............................................................................20

13.2.3 Debt Assumptions........................................................................................................2013.2.4 Miscellaneous Assumptions..........................................................................................20

14 FINANCIAL PROJECTIONS......................................................................................................21

14.1 PROJECTED INCOME STATEMENT...................................................................................................................2114.2 PROJECTED BALANCE SHEET............................................................................................................................2214.3 PROJECTED CASH FLOW STATEMENT.............................................................................................................23

15 ANNEXURE...................................................................................................................................24

15.1 ANNEXURE 1 PROJECT COST AND MEANS OF FINANCING.....................................................................2415.2 ANNEXURE 2 REVENUE GENERATION............................................................................................................2515.3 ANNEXURE 3 LIST OF FIXED ASSETS............................................................................................................2615.4 ANNEXURE 4 STAFF SALARIES........................................................................................................................2715.5 ANNEXURE 5 IMPORTANT CONTACTS............................................................................................................2815.6 ANNEXURE 6 TAX DEDUCTION INCOME SLABS............................................................................................30

DISCLAIMER

The purpose and scope of this information memorandum is to

introduce the subject matter and provide a general idea and

information on the said area. All the material included in this

document is based on data/information gathered from various

sources and is based on certain assumptions. Although, due care

and diligence has been taken to compile this document, the

contained information may vary due to any change in any of the

concerned factors, and the actual results may differ substantially

from the presented information. MKA does not assume any liability

for any financial or other loss resulting from this memorandum in

consequence of undertaking this activity. The prospective user of

this memorandum is encouraged to carry out additional diligence

and gather any information he/she feels necessary for making an

informed decision.

1 INTRODUCTION

Foreign-based companies have entered a recovery phase and started

outsourcing their multiple services to the IT and IT-enabled

companies of various countries. Pakistan has potential to grab its

share in IT-enabled services market as well as contribute towards

providing software applications to various developed countries. The

demand is expected to flourish in the upcoming years. Many

countries prefer outsourcing from Pakistan because of the lower

cost of manpower and advanced technological infrastructure. This

enables the IT sector to bring in good investment opportunities in

the country. This will also be helpful in making more job

opportunities in Pakistan.

History

The word "software" had been coined as a prank by at least 1953,

but did not appear in print until the 1960s. Before this time,

computers were programmed either by customers, or the few

commercial computer vendors of the time, such as UNIVAC and

IBM. The first company founded to provide software products and

services was Computer Usage Company in 1955. The software

industry expanded in the early 1960s, almost immediately after

computers were first sold in mass-produced quantities. Universities,

government, and business customers created a demand for software.

Many of these programs were written in-house by full-time staff

programmers. Some were distributed freely between users of a

particular machine for no charge. Others were done on a

commercial basis, and other firms such as Computer Sciences

Corporation (founded in 1959) started to grow. The computer-

makers started bundling operating systems software and

programming environments with their machines.

When Digital Equipment Corporation brought a relatively low-

priced micro-computer to market, it brought computing within reach

of many more companies and universities worldwide, and it

spawned great innovation in terms of new, powerful programming

languages and methodologies. New software was built for micro-

computers, and others, including IBM, followed DECs example

quickly, resulting in the IBM AS400 amongst others.

The industry expanded greatly with the rise of the personal

computer in the mid-1970s, which brought computing to the desktop

of the office worker. In subsequent years, it also created a growing

market for games, applications, and utilities. DOS, Microsoft's first

operating system product, was the dominant operating system at the

time.

In the early years of the 21st century, another successful business

model has arisen for hosted software, called software as a service,

or SaaS; this was at least the third time this model had been

attempted. SaaS reduces the concerns about software piracy, since it

can only be accessed through the Web, and by definition no client

software is loaded onto the end user's PC

Software sectors

There are several types of businesses in the software industry.

Infrastructure software, including operating systems, middleware

and databases, is made by companies and organizations such as

Linux, Google, Microsoft, IBM, Sybase, EMC, Oracle and

VMWare. Enterprise software, the software that automates business

processes in finance, production, logistics, sales and marketing, is

made by Oracle, SAP AG , Sage and Infor. Security software is

made by the likes of Symantec, Trend Micro and Kaspersky.

Several industry-specific software makers are also among the

largest software companies in the world: SunGard, making software

for banks, BlackBoard making software for schools, and companies

like Qualcomm or CyberVision making software for telecom

companies. Other companies do contract programming to develop

unique software for one particular client company, or focus on

configuring and customizing suites from large vendors such as SAP

or Oracle.

This section does not cite any references or sources. Please help

improve this section by adding citations to reliable sources.

Unsourced material may be challenged and removed. (January 2011)

Leading companies: mindshare and marketshare

In terms of technology leadership, the software industry has long

been led by IBM. However, Microsoft became the dominant PC

operating system supplier. Other companies that have substantial

mindshare (not: marketshare) in the software industry are SUN

Microsystems, the developer of the Java platform (purchased by

Oracle in 2009), Red Hat, for its open source momentum, and

Google for its Google Docs. However in terms of revenues coming

from software sales, the software industry is clearly dominated by

Microsoft, since inception. Microsoft products are still sold in

largest number across the globe.

Size of the industry

According to market researcher DataMonitor, the size of the

worldwide software industry in 2008 was US$ 303.8 billion, an

increase of 6.5% compared to 2007. Americas account for 42.6% of

the global software market's value. DataMonitor forecasts that in

2013, the global software market will have a value of US$ 457

billion, an increase of 50.5% since 2008.

Mergers & Acquisitions

The software industry has been subject to a high degree of

consolidation over the past couple of decades. From 1988 to 2010,

41'136 mergers and acquisitions have been announced with a total

known value of 1'451 bil. USD. The highest number and value of

deals was set in 2000 during the high times of the internet bubble

with 6'757 transactions valued at 447 bil. USD. In 2010, 1'628 deals

were announced valued at 49 bil. USD.

Business models the software industry

Business models of software companies have been widely

discussed. Network effects in software ecosystems networks of

companies and their customers are an important element in the

strategy of software companies.

1 EXECUTIVE SUMMARY

This project entails opening up a Software House that will cater to

both local and export markets. The company’s corporate office will

be opened in Cantt Lahore, Pakistan. The Software House will

provide automated and Information Technology (IT) enabled

solutions catering to businesses across various verticals in Pakistan,

Middle East, UK and USA.

The Software House will have IT specialists with relatively less

industry experience and knowledge. The company will offer a wide

range of cost-effective development of customized application

softwares. In addition to this, the focus of the firm will be to

become a multi-dimensional technology company deriving revenue

and customer satisfaction from a variety of Information Technology

services and custom software offerings including Technology

Outsourcing, Systems Integration, Application Development,

Processes Consulting, Business Intelligence Consulting, and

Information Security Consulting among others.

The estimated cost of the project is Rs.2.3 million. The project is

proposed to be financed through 50% debt and 50% equity. The

project NPV is around Rs. 2.82 million, with an IRR of 43.5% and

payback period of 3.35 years for a worst case scenario. The project

will be run by qualified professionals. The legal business status of

this project is proposed as ‘Sole Proprietorship’.

II. PROJECT BACKGROUND AND BASIC IDEA

There are quite a few hundreds of software houses in Pakistan and

the count is increasing rapidly. These software houses are working

to make Pakistan a bright mark in the world of IT. They are

producing many useful products which have modernized the

processes of traditional industries and also increased their

productivity. As we see, computer has become a significant part of

every walk of our lives and many processes have become automatic

now. All the big shopping malls have computerized billing system

now. Almost every organization keeps its data in computerized

form. Computer and internet awareness is also increasing and the

trend of e-commerce is emerging fast. People, whatever field they

belong to, consult internet for any queries which come into mind.

Substantial IT companies region-wise:  Karachi 611   Islamabad/Rawalpindi 479   Lahore 544   Other regions 105   Foreign IT and telecommunication companies 60   Number of CMMI-assessed companies:  

   CMM Level 5 1

   CMMI Level 5 2   CMMI Level 3 3   CMMI Level 2 16   Total industry size US$ 2.8 billion   IT and IT-enabled services exports US$ 1.4 billion   Percentage growth in exports (2009-2010) 19%   IT graduates produced per year Approx. 20,000   Export targets for fiscal year 2010-2011 US$ 350 million   Number of institutes offering IT/CS programs 110   IT professionals in export-oriented activities More than 15,000   IT professionals employed in Pakistan 110,000   Space utilized in IT & Software Technology parks 11 parks covering 750,000 sq ft

Basic idea behind this project is to develop small applications that

have bigger markets and mostly ignored by most of the software

houses. Very small applications will be developed that require not

much effort. Some applications will only require 2-3 days to

develop but are in regular demand. For example. most of the email

servers do not allow email attachments having more than 20MB

size. An application can be easily developed to split a file and to

rejoin again.

These applications will not require extra-ordinary skill level to

develop. Applications will be developed on the basis of demand.

Furthermore, after successfully running the initial target the

business will be expanded to target the retail stores and bigger

customers but the applications will not be bigger in size i.e. to

attract the customers with lesser amount. As it is believed that

bigger applications require heavy investment, higher skill level and

lots of time and effort.

15-20 dollar average price will be maintained for the softwares and

it will not be increased very soon. A 2 to 10 dollar extra will be

charged if the user would require to purchase the software for more

than 18 months or some extra features.

Initially the softwares will be developed for single user license

which will be modified latter for 5 user package, 10 user package

and 20 user package.

A serial, also known as a product key, is a series of alphanumeric

characters (numbers and letters) that indicate the purchase of that

specific software. Serials for very popular software can sometimes

be found online and most software pirates use these serials

distribute pirated copies that can be unlocked. A crack is a more

sophisticated way of bypassing the security measures of certain

software. It is an application that totally removes the authentication

mechanism that’s been embedded into the software.

The use of serial keys was started by software companies to combat

the quick and wide spread of software piracy. Even if you have a

copy of the software, you would not be able to use it without a

serial. Since its advent, sharing serial keys have been very

prevalent as the most software are not able to confirm whether or

not the serial has been used by another user on another computer.

Some software makers are beginning to require online registration

to mitigate this problem.

A crack is an application that breaks authentication mechanisms of

commercial application while a serial is a proof of purchase that

would unlock an application

Cracks are binary in nature while serials are often encoded as a text

file

Software cracking is an issue and threat to the developers as it

destroys the whole effort of the company. For this two ideas are

being reviewed.

1. For every transaction the application will communicate with

the online server that will check its license information as

well the latest algorithm to complete the requested task. All

these transactions will be in encoded and decoded at the client

end. Each transaction will be provided special encoded keys

consists of Date, license information, Date of expiry, Client

machine information, latest algorithm version and details.

State of the art method will be used to consume minimum

band width and maximum security.

2. Every application will connect to the internet within a month

to check license information from our server. This check will

update the software and status of any illegal change made in

the application.

Both the tasks will result either successful running of the software

or will block the application to work. Necessary changes and

updates procedures will be invoked if the software is found cracked

or changed. These processes will be implemented in an automated

artificially intelligent application that will control the misuse of the

deliveries.

Backup program will also be implemented in the applications that

will implicitly verify the licenses with different timings and

procedure.

No CD Key will be provided to the users to avoid any misuse.

Trial versions for almost all applications i.e. for 10 days will be

available for all with limited level of features.

III. Market analysis and marketing concept

A. M a r k e t i n g

The applications that will be developed are available on the

internet but either they are expensive or they come as a part of

a bigger application suit which costs a lot for the small

customers. Also some of the applications are available in the

market(internet) but are difficult to find.

Marketing will be made primarily from internet and rest will

be made through in-house resources and contacts.

Initially Local websites like rozee.pk, hafeezcentre.org etc

will be the channels to publish commercials and to run the

promotions. Cnet(Download.com) will be used primarily to

market the applications internationally. Also these

applications will be residing on Cnet.com as well as some

other dounload servers available.

5% of the development cost will be reserved for marketing

these applications. Online credit/debit card payments will be

the primary source to receive cash. It is assumed that

maximum number of clients will be from overseas as in the

Pakistani culture, automation and online payments is not

preferred usually. The trend is constantly changing but

initially overseas users will be focused more through online

promotions Skype helpline and online feedback portal.

Competition in the target market is less as industrial giants do

not have their products for the small users. Corporate clients

are not focused in the 4-5 quarters.

Ratios of revenue generation from export and domestic market

are set at approximately 60:40. Majority of the product-

exports are “customized” rather than “shrink-wrapped”

products.

IIIa. Marketing Strategy

If we look the software industry and its various marketing

approaches used by software houses and their perception of

“successfulness”. The following seven successes of marketing

strategies are used by them;

Word of Mouth Approach (Client referrals etc)

Advertising in trade local/foreign journals

Attending local/foreign trade conferences

Initiate 1-to-1 communication with potential clients

Use pre established networks/personal relationships

Alliances and agreements with channel partners

With every software trial versions of one or two

applications will also be dispatched to keep client interested

in other applications also.

Depend on a “Captive” client since formation

Marketing will primarily be done on the internet

IV. Raw materials and supplies

For software houses less number and quantity of supplies and

materials are required. A rough estimate of required items are

listed below:

EQUIPMENT YEAR 1

Title Total Cost

PCs214,320

Laptop PCs140,000

Server 47,722

UPS for PCs 40,000

Network Equipment 15,394

Printer (LASER) 5,542

Power Generator Backup 50,031

   

Total 513,008

FURNITURE & FIXTURE  

Items Total Cost

Computer furniture 84,667

Office furniture 10,776

Furniture senior staff 23,091

Furniture reception area 7,697

Furniture conference room 18,473

A/Cs Split 66,502

Telephone exchange/phones 7,697

Facsimile 2,309

Photo Copier 15,394

Library (Books) 23,091

Miscellaneous 15,394

Total 275,092

VI. Engineering and technology

Latest development tools and techniques will be used to have

maximum compatibility level with faster and latest approach.

Microsoft based technology will be used primarily. Java will

be the second tool to develop applications as per requirement

and demand. One reason to use the latest technology is that

less amount of work is required in the new versions with

faster speed.

Most of the development tools are free and do not require any

license fee.

If any expensive development tool would be required it will

only be purchased a comparatively bigger order & payment is

received from a customer.

VII. Organization and overhead costs

Overhead costs

Operating and overhead Expenses for the project and there

basis are taken as follows:

Description (Rs.)

Staff Benefit 135,499

Bonuses and other Allowances 135,499

Repair & Maintenance 313,467

Insurance 25,650

Foreign Traveling (a year) 338,670

Traveling & Conveyance 290,948

Entertainment         19,397 

Printing & Stationary         32,328 

Books & Periodicals         16,626 

General and Administration         19,397 

Communications       184,729 

Rent       554,187 

Utilities       136,227 

Advertising           9,236 

Total 2,211,859

VIII. Human resources

Technical Staff YEAR 1

PersonAnnualSalary

Developers 1,200,00

0

Interns 400,00

0

Markeking Analyst 345,00

0

Lower Staff 280,98

5

Total 2,225,985

Dirrector

Team Lead Team Lead

Intern Intern Intern

Developer

Intern Intern Intern

Developer

Company’s Organogram

Availability and recruitment

IX. Implementation planning and budgeting

The potential of each employee for revenue generation is around US$ 19,200 based on 50% capacity

utilization during Year-1. This capacity utilization goes up to 95% in Year-10. The project is based on 8

working hours in a day, with revenue generation of US$ 26 per hour. The annual increase in this rate is

5%. 264 days in a year are assumed to be working days. The export vs. local sales ratio is as follows:

Project Cost

Capital Investment Requirement 1,465,517

Working Capital Requirements 1,035,202

Total Project Investment Requirement Rupees 2,500,719

X. Financial analysis and investment appraisal

Project Cost  R

s.

Project Development cost     

Equipment 

513,008 

Furniture & Fixture 

290,486 

Motor Vehicles 

1,306,111

Preliminary Expenses     

Copy rights-Licensing & Trade Marks 

24,861 

Other Expenses 

159,406

Working Capital   

1,035,202

Intangible Assets     

Total Assets   

2,500,719

Total Capital Employed By:     

Total Capital Cost 

100%

2,500,719

Table 12-3 Working Capital break down   

 

Current Assets   

 

Receivables876,379

Advances to Employees   

307,952

Total Current Assets   

1,184,331

Current Liabilities   

 

Utilities Payable11,352

Salary Payable   

137,777

Total Current Liabilities   

149,129

Net Working Capital   

1,035,202

Projected Income Statement

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Revenue                    

Export -

668,064

1,147,855

1,740,914 2,567,702 3,610,832

4,044,131

5,263,690

5,851,

984 6,485,95

0

Local

5,784,103 6,012,57

6 6,504,5

14 6,963,65

6 7,703,107 8,425,274 9,436,30

6 9,775,42

4

10,867,

971 12,045,33

5

Total Revenue

5,784,103 6,680,63

9 7,652,3

69 8,704,57

0 10,270,810 12,036,105 13,480,43

8 15,039,11

4

16,719,

956 18,531,28

4

Operating Expenses

4,921,835 5,488,91

4 5,603,8

70 6,860,34

2 7,780,798 9,246,615 10,340,63

8 11,508,65

4 12,808,92

1 14,315,91

7

Depreciation

248,603 184,80

5 140,9

35 334,69

1 240,549 176,416 429,00

0 301,04

1 214,70

9 550,13

8

Amortization of Deferred Cost 31,881

31,881

31,881

31,881 31,881

-

-

-

-

-

 

5,202,319 5,705,60

1 5,776,6

87

7,226,91

5 8,0

53,229

9,423,0

31

10,769,

637

11,809,

694

13,023,

630 14,866,05

5

Profit before Tax and Interest

581,785 975,03

9 1,875,6

82

1,477,65

5 2,2

17,581

2,613,0

74

2,710,

801

3,229,

419

3,696,

326 3,665,22

9

Long term liabilities

198,390 191,72

2 185,0

53

178,385

171,716

165,0

47

158,3

79

151,7

10

145,0

42 138,37

3

Short Term Liabilities

144,928 144,92

8 -

- - -

-

-

-

-

Profit / (Loss) before Tax

238,466 638,38

9 1,690,6

29

1,299,27

0 2,0

45,865

2,448,0

26

2,552,

422

3,077,

709

3,551,

284 3,526,85

6

Taxation

28,921 198,84

6 417,5

66

325,097

435,313

485,9

40

472,0

00

737,3

12

1,135,

077 874,19

6

Profit after Tax 3,566,092

4,144,305

4,776,330

5,410,002 6,391,403 7,486,201

8,373,422

9,374,040

10,470,274

11,545,464

Projected Balance Sheet  

                   

Year Startup Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Fixed Assets                      

Tangible

1,306,111

1,05

7,508

87

2,703

73

8,753

1,08

6,875

85

5,003

68

8,132

1,16

7,957

87

8,466

67

6,461

1,333,429

Intangible                     

 

1,306,111

1,05

7,508

87

2,703

73

8,753

1,08

6,875

85

5,003

68

8,132

1,16

7,957

87

8,466

67

6,461

1,333,429

DEFERRED COST                     

Project development expenditure

24,861

1

9,88

1

4,91

9,945

4,972

-

-

-

-

-

-

9 7

Preliminary Expenses

134,544

10

7,635

8

0,727

5

3,818

2

6,909

-

-

-

-

-

-

  1,4

65,517

1,18

5,033

96

8,347

80

2,515

1,11

8,756

85

5,003

68

8,132

1,16

7,957

87

8,466

67

6,461

1,333,429

CURRENT ASSETS                      

Accounts Recb. -

876,379

1,012,218

1,159,450

1,318,874

1,556,183

1,823,652

2,042,491

2,278,654

2,533,327

2,807,770

Advances to Employees

- 3

07,952 3

38,747 3

19,175 4

09,884 4

63,166 5

26,386 579,025

636,927

700,620

770,682

Cash & Bank Balances 1,0

35,202 1,4

83,553 2,9

81,584 3,2

32,343 3,6

16,507 5,1

78,392 6,9

56,816 8,268,274

10,588,836

12,876,065

14,517,541

  1,0

35,202 2,6

67,884 4,3

32,549 4,7

10,968 5,3

45,265 7,1

97,741 9,3

06,854 10,889,789

13,504,417

16,110,012

18,095,993

LESS: CURRENT LIABILITIES

                     

Short Term 1,0 1,0

Borrowings- 35,202 35,202 - - - - - - - -

Utilities Payable -

11,352

12,488

13,736

15,110

16,621

18,283

20,111

22,122

24,335

26,768

Salary Payable -

137,777

151,555

166,710

183,381

201,720

221,891

244,081

268,489

295,337

324,871

Dividend Payable                     

  -

1,18

4,331

1,19

9,244

18

0,447

19

8,491

21

8,340

24

0,174

26

4,192

290,611

319,672

351,639

Working Capital

1,035,202

1,48

3,553

3,13

3,305

4,53

0,521

5,14

6,774

6,97

9,401

9,06

6,680

1

0,62

5,597

13,213,806

15,790,340

17,744,354

TOTAL CAPITAL EMPLOYED

2,500,71

9

2,66

8,586

4,10

1,652

5,33

3,036

6,26

5,530

7,83

4,404

9,75

4,812

1

1,79

3,555

14,092,273

16,466,801

19,077,783

                       

CAPITAL EMPLOYED REPRESENTED BY:

                     

                       

SHARE CAPITAL                     

125,036 Shares @ Rs.10/0 each

1,250,359

1,25

0,359

1,25

0,359

1,25

0,359

1,25

0,359

1,25

0,359

1,25

0,359

1,25

0,359

1,250,359

1,250,359

1,250,359

UNAPP. PROFIT/(LOSS)

-

20

9,545

64

9,089

1,92

2,152

2,89

6,324

4,50

6,877

6,46

8,963

8,54

9,385

10,889,781

13,305,988

15,958,649

  1,2

50,359

1,45

9,905

1,89

9,448

3,17

2,511

4,14

6,684

5,75

7,236

7,71

9,323

9,79

9,744

12,140,141

14,556,348

17,209,008

LONG TERM LAIBILITIES

1,250,359

1,208,681

2,202,204

2,160,525

2,118,847

2,077,168

2,035,489

1,993,811

1,952,132

1,910,453

1,868,775

 

1,250,35

9

1,20

8,681

2,202,204

2,160,525

2,118,847

2,077,168

2,035,489

1,993,811

1,952,132

1,910,453

1,868,775

TOTAL

2,500,71

9

2,66

8,586

4,101,652

5,333,036

6,265,530

7,834,404

9,754,812

11,793,555

14,092,273

16,466,801

19,077,783

Projected Cash Flow Statement                    Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10SOURCES                    FROM OPERATION                    Profit Before Tax 238,50

3 638,48

7 1,690,88

9 1,299,47

0 2,046,18

0 2,448,40

3 2,552,81

5 3,078,18

3 3,551,83

1 3,527,39

9 Add: Depreciation 248,64

1 184,83

4 140,95

7 334,74

3 240,58

6 176,44

3 429,06

6 301,08

7 214,74

2 550,22

2 Amortization 31,88

6 31,88

6 31,88

6 31,88

6 31,88

6 - -

-

-

-

519,03

0 855,20

7 1,863,73

2 1,666,09

9 2,318,65

3 2,624,84

7 2,981,88

0 3,379,27

0 3,766,57

3 4,077,62

2 OTHER SOURCES                    Short Term Borrowings 1,035,36

1 1,035,36

1 - - - - -

-

-

-

1,035,36

1 1,035,36

1 - - - - -

-

-

-

1,554,39

1 1,890,56

8 1,863,73

2 1,666,09

9 2,318,65

3 2,624,84

7 2,981,88

0 3,379,27

0 3,766,57

3 4,077,62

2                    APPLICATION                    Capital Expenditure

- - 6,98

6 682,91

9 8,67

9 9,54

7 908,96

5 11,55

1 12,70

6 1,207,29

1 Payments - Long term Liabilities

41,685

41,685

41,685

41,685

41,685

41,685

41,685

41,685

41,685

41,685

Tax Paid 28,925

198,877

417,630

325,147

435,380

486,015

472,073

737,426

1,135,252

874,330

Payments - Short Term Liabilities

              -    - 1,035,361

              -                  -                  -                  -                    -                    -                    -   

Dividend Paid               -    - -               -                  -                  -                  -                    -                    -                    -   - Cash - -

-

-

-

-

-

-

-

- 70,61 240,56 1,501,66 1,049,75 485,74 537,24 1,422,72 790,66 1,189,64 2,123,30

0 2 2 1 3 6 3 2 3 6

SURPLUS / (DEFICIT) 1,483,78

1 1,650,00

7 362,07

0 616,34

8 1,832,90

9 2,087,60

0 1,559,15

8 2,588,60

8 2,576,93

0 1,954,31

5 INCREASE/(DECREASE) IN WORKING CAPITAL

1,035,361

151,744

111,273

232,124

270,784

308,903

247,498

267,687

289,349

312,587

NET INCREASE/(DECREASE)

448,420

1,498,262

250,797

384,224

1,562,125

1,778,697

1,311,660

2,320,920

2,287,581

1,641,729

OPENING BANK BALANCES

1,035,361

1,483,781

2,982,043

3,232,840

3,617,064

5,179,189

6,957,887

8,269,547

10,590,467

12,878,047

CLOSING CASH BALANCE 1,483,78

1 2,982,04

3 3,232,84

0 3,617,06

4 5,179,18

9 6,957,88

7 8,269,54

7 10,590,46

7 12,878,04

7 14,519,77

6

Project Cost    R

Rupees  Project Development cost    Equipment 513,087  Furniture & Fixture 290,531  Motor Vehicles 502,694 1,306,313Preliminary Expenses    Copy rights-Licensing & Trade Marks

24,865  

Other Expenses 134,565 159,430     Working Capital 1,035,361  Intangible Assets    Capital Work in Progress    Interest during Development    Total Assets 2,501,104  Total Capital Employed By:    Equity Contribution by Sponsor 2,501,104   1,250,552  Total Capital 2,501,104