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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