PAKISTAN Coach Service

Qaiser Khalil
 Pakistan Coach Service

Khadim Ali Shah Bukhari Institute of Technology

Stratigic Management

PROJECT
Forcast Bussiness ON
Pakistan Coasch Service

Prepared By:- Qaiser Khalil

ID # 4367
MBA (W)

Submited To:- Mr.Emad Ul Karim

Academic Version
 Confidentiality Agreement

The undersigned reader acknowledges that the information provided by in this business plan is
confidential; therefore, reader agrees not to disclose it without the express written permission of .

It is acknowledged by reader that information to be furnished in this business plan is in all respects confidential in nature,
other than information which is in the public domain through other means and that any disclosure or use of same by reader,
may cause serious harm or damage to .

Upon request, this document is to be immediately returned to .

Signature

Name (typed or printed)

Date

This is a business plan. It does not imply an offering of securities.

Academic Version
 Table of Contents

1.0 Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

1.1 Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.2 Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.3 Keys to Success . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

2.0 Company Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

2.1 Company Ownership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
2.2 Start-up Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

3.0 Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

4.0 Market Analysis Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

4.1 Market Segmentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
4.2 Target Market Segment Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
4.3 Service Business Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
4.3.1 Competition and Buying Patterns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

5.0 Strategy and Implementation Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

5.1 SWOT Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
5.1.1 Strengths . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
5.1.2 Weaknesses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
5.1.3 Opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
5.1.4 Threats . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
5.2 Competitive Edge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
5.3 Marketing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
5.4 Sales Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
5.4.1 Sales Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

6.0 Management Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

7.0 Financial Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

7.1 Start-up Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
7.2 Important Assumptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
7.3 Break-even Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
7.4 Projected Profit and Loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
7.5 Projected Cash Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
7.6 Projected Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
7.7 Business Ratios . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
7.8 Long-term Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Academic Version
 Pakistan Coach Service

1.0 Executive Summary

1.1 Objectives

• Quality Service
• Reasonable fare
• Non Stop Routes
• Pessangers Convenience Through Quality Service

1.2 Mission

To become a leading transport service of Pakistan by providing the best quality service to our valued
customer and to acquire ample amount of profit to the organization with employees welfare prospective,

1.3 Keys to Success

• Our customers are our valuable assets

• We dont Compromise on time
• We have high regards for our employees

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2.0 Company Summary

The Pakistan Coach service is one of the quality inter bus service starting their business between
sukkur & karachi , we have plan to extend our business among the major cities of Pakistan.

2.1 Company Ownership

The PCS is a partnership concern business initiated by three partners with equal share, the name of
partners are following,

1. Mr. Qaiser Khalil

2. Mr. Ali

2.2 Start-up Summary

The company founders, Mr.Qaiser will handle day-to-day operations of the business in Karachi
While Mr. Ali Will be responsible for Sukkur operation and will work collaboratively to ensure that this
business venture is a success.

It is estimated that the start-up costs will be Rs.,476,000 (including legal costs, advertising, and related
expenses). An additional amount of Rs.3100,000 will be required as start-up assets. The start-up costs
are to be financed in equal portions by the owners' personal funds

Table: Start-up

Start-up

Requirements

Start-up Expenses
Rent Expenses $20,000
Salaries & Wages $100,000
Insurance $5,000
Repair & Maintenane $60,000
Diesel , CNG, Petrol & oil $220,000
Taxes & Duties $26,000
Marketing & Advertisement $25,000
Others $20,000
Total Start-up Expenses $476,000

Start-up Assets
Cash Required $100,000
Other Current Assets $500,000
Long-term Assets $2,500,000
Total Assets $3,100,000

Total Requirements $3,576,000

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3.0 Services

PCS will offer transport services from Karachi to Sukkur for customers seeking reliable transportation
services. The company will gradually seize its service offerings in the competitive market of airport
transfers and will specifically target customers who need sightseeing services, transportation of private
school students, and elderly citizens. There is less competition in these markets; and the customers are
less price sensitive, which will allow PCS to charge premium prices for its services.

4.0 Market Analysis Summary

There are many transport companies to serve this population. The goal of PCS must be to
segment this market and concentrate the company's marketing efforts on those markets
which are not receiving much attention from competing transport services. The most
attractive segments for which a need exists, and where there is adequate wealth to afford
transport service, are:

• Intercity non stop transportation

• Private School Student Transportation: 10 private schools with 3,502 students.

• Elderly Transportation: 19 retirement and assisted living institutions.

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4.1 Market Segmentation

The are many competitors. There are 20 listed in karachi. Six of these now have
advertisements of the same size as PCS. A further 14 have ads which are larger. An
analysis of these ads indicate that most of the competition is concentrating its marketing
efforts on:

1. Intercities Transports: 10 large ads stress this.

2. School Transportation: 2 of the 14 ads stress this.
3. Elderly Transportation: 2 of the 14 large ads mention this.

Table: Market Analysis

Market Analysis
2010 2011 2012 2013 2014
Potential Customers Growth CAGR
Business Men 20% 5,000 6,000 7,200 8,640 10,368 20.00%
Families 25% 5,000 6,250 7,813 9,766 12,208 25.00%
Other 25% 1,520 1,900 2,375 2,969 3,711 25.00%
Total 22.91% 11,520 14,150 17,388 21,375 26,287 22.91%

4.2 Target Market Segment Strategy

PCS will selectively focus its marketing strategy on the private Intercity bus service,
targeting businessmen Families and students. The market analysis shows that these
segments are less price sensitive. Such customers will require reliable, on time pick ups
and knowledgeable drivers. At the same time, competition in these segments is very low.
PCS can gain a competitive advantage by entering these markets and establishing the
reputation of being a reliable service provider. This will be achieved by providing premium
services to the targeted customer base and relying on customer referrals to generate new
leads.

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4.3 Service Business Analysis

Statistics from The Fact Book show operating results compiled from over 9,600 operators
nation-wide. These comparative statistics are available by area of the country and are
broken down by type of pessenger.

• Businessmen: 40%
• Families: 40%
• Other: 20%

4.3.1 Competition and Buying Patterns

The private transportation services market in Karachi Sukkur area is quite competitive.
There are numerous intercity transport services, shuttles, and taxi cabs available for a wide
range of prices.

5.0 Strategy and Implementation Summary

The sales and marketing strategy is to move as quickly as possible into the three
designated market segments (Intercity, Private School Transportation, and Elderly
Transport) that represent excellent growth potential. It has been shown that these market
areas are presently not being actively pursued by the competition.

The marketing thrust will consist of direct contact to the responsible person at selected
private schools, the creation and distribution of color brochures to Inns, Bed and
Breakfasts, Assisted Living and Retirement Communities, and direct mailing to new high
worth individuals using the resources of a list company.

5.1 SWOT Analysis

The following SWOT analysis captures the key strengths and weaknesses within the company, and
describes the opportunities and threats facing Interior Views.

• Strong relationships with customers that offer, flexibility, and response to special service
requirements.
• Excellent and stable staff, offering personalized customer service.
• Quality and comfortable seats,
• Experienced drivers,
• Reasonable fare.Limited quantity of vans
• Less diversified routes
• New business setup
• Limited work force
• Non Availability of technical staff
• New cities to discover
• Increase no of vans
• Competitive Advantage
• Business diversification
• Extend our business
• Competitors
• Seasonal effect

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 Pakistan Coach Service
• Law & orders Situation
• Political instability
• Availability of other means of transportation

5.1.1 Strengths

• Strong relationships with customers that offer, flexibility, and response to special service
requirements.
• Excellent and stable staff, offering personalized customer service.
• Quality and comfortable seats,
• Experienced drivers,
• Reasonable fare.

5.1.2 Weaknesses

• Limited quantity of vans

• Less diversified routes
• New business setup
• Limited work force
• Non Availability of technical staff

5.1.3 Opportunities

• New cities to discover

• Increase no of vans
• Competitive Advantage
• Business diversification
• Extend our business

5.1.4 Threats

• Competitors
• Seasonal effect
• Law & orders Situation
• Political instability
• Availability of other means of transportation

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5.2 Competitive Edge

The major competitive edge that PCS will emphasize is the high quality of its customer
service. The company will differentiate itself through the courteousness and good people
skills of the dispatchers and drivers, on time pickups and drop offs, and drivers who are
highly knowledgeable of the local area. These efforts will generate good word of mouth
among the targeted customer group. As the company grows, special efforts will be devoted
to the customer service training of the new employees. 'The customer is always right' will
be the core underlying concept of the customer philosophy of PCS.

5.3 Marketing Strategy

Our Marketing strategy is to extend our business towards other sectors like private cab service within
city and intercity while school van service will be started within city by marketing our future business in
our existing van service where we will distribute brouchers and pamphlets to market our prospective
business.

5.4 Sales Strategy

All partners in PCS have excellent telephone and interpersonal skills; these are skills which
have been useful in making customers comfortable while in the Sukkur and Karachi.
Keeping customers happy, we feel, is an implicit part of building a relationship that will
encourage repeat business. Another helpful strategy to determine how effective our
marketing strategies are is finding out how the customer came to call PCS.

The new brochures will be available in the vehicles,

5.4.1 Sales Forecast

PCS is transport co, we operates vans which caries 16 pessenger per trip, and per van there are two
trip daily. In near future we will add more vans in our service and will operate our vans for varies cities
of Pakistan,

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Table: Sales Forecast

Sales Forecast
FY FY FY FY
FY 2011
2012 2013 2014 2015
Unit Sales
Karachi to Sukkur 18,999 19,500 22,000 24,000 26,000
Sukkur to Karachi 18,999 19,500 22,000 24,000 26,000
Total Unit Sales 37,997 39,000 44,000 48,000 52,000

Unit Prices FY FY FY FY
FY 2011
2012 2013 2014 2015
Karachi to Sukkur $1,600. $1,600. $1,600. $1,600.
$1,600.00
00 00 00 00
Sukkur to Karachi $1,600. $1,600. $1,600. $1,600.
$1,600.00
00 00 00 00

Sales
Karachi to Sukkur $31,20 $35,20 $38,40 $41,60
$30,397,826
0,000 0,000 0,000 0,000
Sukkur to Karachi $31,20 $35,20 $38,40 $41,60
$30,397,826
0,000 0,000 0,000 0,000
Total Sales $62,40 $70,40 $76,80 $83,20
$60,795,651
0,000 0,000 0,000 0,000

Direct Unit Costs FY FY FY FY

FY 2011
2012 2013 2014 2015
Karachi to Sukkur $240.0 $240.0 $240.0 $240.0
$240.00
0 0 0 0
Sukkur to Karachi $240.0 $240.0 $240.0 $240.0
$240.00
0 0 0 0

Direct Cost of Sales

Karachi to Sukkur $4,680, $5,280, $5,760, $6,240,
$4,559,674
000 000 000 000
Sukkur to Karachi $4,680, $5,280, $5,760, $6,240,
$4,559,674
000 000 000 000
Subtotal Direct Cost of Sales $9,360, $10,56 $11,52 $12,48
$9,119,348
000 0,000 0,000 0,000

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6.0 Management Summary

The management of the company is jointly undertaken by the partners . partner are well
aware of the pit-falls of growing too fast and are now taking a more cautious approach to
growth. for example more inter city service and more buses adding to service,

7.0 Financial Plan

Intercity pessenger transport service is a profitable business, because most of the intercity travellers
likes to travel by bus instead of trains and other means. so at the start up we have added two vans in
our transport, we have made plan to more buses will be added gradually to our transportation. So its is
projected that 20% growth will be achieved annualy.

7.1 Start-up Funding

Start up Funding is made by the four partners equally,

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Table: Start-up Funding

Start-up Funding
Start-up Expenses to Fund $476,000
Start-up Assets to Fund $3,100,000
Total Funding Required $3,576,000

Assets
Non-cash Assets from Start-up $3,000,000
Cash Requirements from Start-up $100,000
Additional Cash Raised $0
Cash Balance on Starting Date $100,000
Total Assets $3,100,000

Liabilities and Capital

Liabilities
Current Borrowing $0
Long-term Liabilities $0
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $0

Capital

Planned Investment
Owner $0
Investor $0
Additional Investment Requirement $3,576,000
Total Planned Investment $3,576,000

Loss at Start-up (Start-up Expenses) ($476,000)

Total Capital $3,100,000

Total Capital and Liabilities $3,100,000

Total Funding $3,576,000

7.2 Important Assumptions

7.3 Break-even Analysis

Table: Break-even Analysis

Break-even Analysis

Monthly Units Break-even 0

Monthly Revenue Break-even $0

Assumptions:
Average Per-Unit Revenue $1,600.00
Average Per-Unit Variable Cost $240.00
Estimated Monthly Fixed Cost $0

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7.4 Projected Profit and Loss

Table: Profit and Loss

Pro Forma Profit and Loss

FY FY FY FY
FY 2011
2012 2013 2014 2015
Sales $62,40 $70,40 $76,80 $83,20
$60,795,651
0,000 0,000 0,000 0,000
Direct Cost of Sales $9,360, $10,56 $11,52 $12,48
$9,119,348
000 0,000 0,000 0,000
Other Costs of Sales $0 $0 $0 $0 $0
---------- ---------- ---------- ----------
------------
-- -- -- --
Total Cost of Sales $9,360, $10,56 $11,52 $12,48
$9,119,348
000 0,000 0,000 0,000

Gross Margin $53,04 $59,84 $65,28 $70,72

$51,676,304
0,000 0,000 0,000 0,000
Gross Margin % 85.00% 85.00% 85.00% 85.00% 85.00%

Expenses
Payroll $0 $0 $0 $0 $0
Marketing/Promotion $0 $0 $0 $0 $0
Depreciation $0 $0 $0 $0 $0
Rent $0 $0 $0 $0 $0
Utilities $0 $0 $0 $0 $0
Insurance $0 $0 $0 $0 $0
Payroll Taxes $0 $0 $0 $0 $0
Other $0 $0 $0 $0 $0
---------- ---------- ---------- ----------
------------
-- -- -- --
Total Operating Expenses $0 $0 $0 $0 $0

Profit Before Interest and Taxes $53,04 $59,84 $65,28 $70,72

$51,676,304
0,000 0,000 0,000 0,000
EBITDA $53,04 $59,84 $65,28 $70,72
$51,676,304
0,000 0,000 0,000 0,000
Interest Expense $0 $0 $0 $0 $0
Taxes Incurred $15,91 $17,95 $19,58 $21,21
$15,502,891
2,000 2,000 4,000 6,000

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Net Profit $37,12 $41,88 $45,69 $49,50
$36 ,173,413
8,000 8,000 6,000 4,000
Net Profit/Sales 59.50% 59.50% 59.50% 59.50% 59.50%

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7.5 Projected Cash Flow

Table: Cash Flow

Pro Forma Cash Flow

FY 2011 FY 2012 FY 2013 FY 2014 FY 2015
Cash Received

Cash from Operations

Cash Sales $60,795,651 $62,400,000 $70,400,000 $76,800,000 $83,200,000
Subtotal Cash from Operations $60,795,651 $62,400,000 $70,400,000 $76,800,000 $83,200,000

Additional Cash Received

Sales Tax, VAT, HST/GST
$9,119,348 $9,360,000 $10,560,000 $11,520,000 $12,480,000
Received
New Current Borrowing $0 $0 $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0 $0 $0
New Long-term Liabilities $0 $0 $0 $0 $0
Sales of Other Current Assets $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0
Subtotal Cash Received $69,914,999 $71,760,000 $80,960,000 $88,320,000 $95,680,000

Expenditures FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Expenditures from Operations

Cash Spending $0 $0 $0 $0 $0
Bill Payments $20,154,203 $27,662,886 $28,245,699 $30,890,959 $33,482,959
Subtotal Spent on Operations $20,154,203 $27,662,886 $28,245,699 $30,890,959 $33,482,959

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0
Principal Repayment of Current
$0 $0 $0 $0 $0
Borrowing
Other Liabilities Principal
$0 $0 $0 $0 $0
Repayment
Long-term Liabilities Principal
$0 $0 $0 $0 $0
Repayment
Purchase Other Current Assets $0 $0 $0 $0 $0
Purchase Long-term Assets $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0
Subtotal Cash Spent $20,154,203 $27,662,886 $28,245,699 $30,890,959 $33,482,959

Net Cash Flow $49,760,797 $44,097,114 $52,714,301 $57,429,041 $62,197,041

Cash Balance $146,672,21 $204,101,25 $266,298,29
$49,860,797 $93,957,911
2 3 5

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7.6 Projected Balance Sheet

To Start up new business we have purchased intially two vans and two offices on rent so
the balance sheet shows the value of assets other investement of PCS.

Table: Balance Sheet

Pro Forma Balance Sheet

FY 2011 FY 2012 FY 2013 FY 2014 FY 2015
Assets

Current Assets
Cash $146,672,21 $204,101,25 $266,298,29
$49,860,797 $93,957,911
2 3 5
Other Current Assets $500,000 $500,000 $500,000 $500,000 $500,000
Total Current Assets $147,172,21 $204,601,25 $266,798,29
$50,360,797 $94,457,911
2 3 5

Long-term Assets
Long-term Assets $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000
Accumulated Depreciation $0 $0 $0 $0 $0
Total Long-term Assets $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000
Total Assets $149,672,21 $207,101,25 $269,298,29
$52,860,797 $96,957,911
2 3 5

Liabilities and Capital FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Current Liabilities
Accounts Payable $4,468,036 $2,077,151 $2,343,452 $2,556,493 $2,769,534
Current Borrowing $0 $0 $0 $0 $0
Other Current Liabilities $9,119,348 $18,479,348 $29,039,348 $40,559,348 $53,039,348
Subtotal Current Liabilities $13,587,384 $20,556,498 $31,382,800 $43,115,841 $55,808,882

Long-term Liabilities $0 $0 $0 $0 $0
Total Liabilities $13,587,384 $20,556,498 $31,382,800 $43,115,841 $55,808,882

Paid-in Capital $3,576,000 $3,576,000 $3,576,000 $3,576,000 $3,576,000

Retained Earnings $114,713,41 $160,409,41
($476,000) $35,697,413 $72,825,413
3 3
Earnings $36,173,413 $37,128,000 $41,888,000 $45,696,000 $49,504,000
Total Capital $118,289,41 $163,985,41 $213,489,41
$39,273,413 $76,401,413
3 3 3
Total Liabilities and Capital $149,672,21 $207,101,25 $269,298,29
$52,860,797 $96,957,911
2 3 5

Net Worth $118,289,41 $163,985,41 $213,489,41

$39,273,413 $76,401,413
3 3 3

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7.7 Business Ratios

Table: Ratios

Ratio Analysis

Profile
Sales Growth 0.00% 2.64% 12.82% 9.09% 8.33% 9.08%

Percent of Total Assets

Other Current Assets 0.95% 0.52% 0.33% 0.24% 0.19% 57.71%
Total Current Assets 95.27% 97.42% 98.33% 98.79% 99.07% 70.99%
Long-term Assets 4.73% 2.58% 1.67% 1.21% 0.93% 29.01%
Total Assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Current Liabilities 25.70% 21.20% 20.97% 20.82% 20.72% 25.64%

Long-term Liabilities 0.00% 0.00% 0.00% 0.00% 0.00% 30.35%
Total Liabilities 25.70% 21.20% 20.97% 20.82% 20.72% 55.99%
Net Worth 74.30% 78.80% 79.03% 79.18% 79.28% 44.01%

Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Gross Margin 85.00% 85.00% 85.00% 85.00% 85.00% 48.39%
Selling, General & Administrative
25.50% 25.50% 25.50% 25.50% 25.50% 22.56%
Expenses
Advertising Expenses 0.00% 0.00% 0.00% 0.00% 0.00% 0.43%
Profit Before Interest and Taxes 85.00% 85.00% 85.00% 85.00% 85.00% 1.95%

Main Ratios
Current 3.71 4.60 4.69 4.75 4.78 1.39
Quick 3.71 4.60 4.69 4.75 4.78 0.94
Total Debt to Total Assets 25.70% 21.20% 20.97% 20.82% 20.72% 59.99%
Pre-tax Return on Net Worth 131.58% 69.42% 50.59% 39.81% 33.13% 2.67%
Pre-tax Return on Assets 97.76% 54.70% 39.98% 31.52% 26.26% 6.67%

Additional Ratios FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Net Profit Margin 59.50% 59.50% 59.50% 59.50% 59.50% n.a
Return on Equity 92.11% 48.60% 35.41% 27.87% 23.19% n.a

Activity Ratios
Accounts Payable Turnover 5.51 12.17 12.17 12.17 12.17 n.a
Payment Days 27 47 28 29 29 n.a
Total Asset Turnover 1.15 0.64 0.47 0.37 0.31 n.a

Debt Ratios
Debt to Net Worth 0.35 0.27 0.27 0.26 0.26 n.a
Current Liab. to Liab. 1.00 1.00 1.00 1.00 1.00 n.a

Liquidity Ratios
Net Working Capital $115,789,41 $161,485,41 $210,989,41
$36,773,413 $73,901,413 n.a
3 3 3
Interest Coverage 0.00 0.00 0.00 0.00 0.00 n.a

Additional Ratios
Assets to Sales 0.87 1.55 2.13 2.70 3.24 n.a
Current Debt/Total Assets 26% 21% 21% 21% 21% n.a
Acid Test 3.71 4.60 4.69 4.75 4.78 n.a
Sales/Net Worth 1.55 0.82 0.60 0.47 0.39 n.a
Dividend Payout 0.00 0.00 0.00 0.00 0.00 n.a

7.8 Long-term Plan

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 Appendix

Table: Sales Forecast

Sales Forecast
Oct-10 Nov-10 Dec-10 Jan-11 Jun-11 Sep-11
Unit Sales
Karachi to Sukkur 0% 480 576 691 829 2,064 3,566
Sukkur to Karachi 0% 480 576 691 829 2,064 3,566
Total Unit Sales 960 1,152 1,382 1,659 4,128 7,133

Unit Prices Oct-10 Nov-10 Dec-10 Jan-11 Jun-11 Sep-11

Karachi to Sukkur $1,600.00 $1,600.00 $1,600.00 $1,600.00 $1,600.00 $1,600.00
Sukkur to Karachi $1,600.00 $1,600.00 $1,600.00 $1,600.00 $1,600.00 $1,600.00

Sales
Karachi to Sukkur $768,000 $921,600 $1,105,920 $1,327,104 $3,302,259 $5,706,304
Sukkur to Karachi $768,000 $921,600 $1,105,920 $1,327,104 $3,302,259 $5,706,304
Total Sales $1,536,000 $1,843,200 $2,211,840 $2,654,208 $6,604,519 $11,412,609

Direct Unit Costs Oct-10 Nov-10 Dec-10 Jan-11 Jun-11 Sep-11

Karachi to Sukkur 15.00% $240.00 $240.00 $240.00 $240.00 $240.00 $240.00
Sukkur to Karachi 15.00% $240.00 $240.00 $240.00 $240.00 $240.00 $240.00

Direct Cost of Sales

Karachi to Sukkur $115,200 $138,240 $165,888 $199,066 $495,339 $855,946
Sukkur to Karachi $115,200 $138,240 $165,888 $199,066 $495,339 $855,946
Subtotal Direct Cost of Sales $230,400 $276,480 $331,776 $398,131 $990,678 $1,711,891

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 Appendix
Table: Personnel

Personnel Plan
Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11
Karachi Staff 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sukkur Staff 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Staff 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total People 0 0 0 0 0 0 0 0 0 0 0 0

Total Payroll $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

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 Appendix
Table: Profit and Loss

Pro Forma Profit and Loss

Oct-10 Nov-10 Dec-10 Jan-11 Jun-11 Sep-11
Sales $1,536,000 $1,843,200 $2,211,840 $2,654,208 $6,604,519 $11,412,609
Direct Cost of Sales $230,400 $276,480 $331,776 $398,131 $990,678 $1,711,891
Other Costs of Sales $0 $0 $0 $0 $0 $0
------------ ------------ ------------ ------------ ------------ ------------
Total Cost of Sales $230,400 $276,480 $331,776 $398,131 $990,678 $1,711,891

Gross Margin $1,305,600 $1,566,720 $1,880,064 $2,256,077 $5,613,841 $9,700,717

Gross Margin % 85.00% 85.00% 85.00% 85.00% 85.00% 85.00%

Expenses
Payroll $0 $0 $0 $0 $0 $0
Marketing/Promotion $0 $0 $0 $0 $0 $0
Depreciation $0 $0 $0 $0 $0 $0
Rent $0 $0 $0 $0 $0 $0
Utilities $0 $0 $0 $0 $0 $0
Insurance $0 $0 $0 $0 $0 $0
Payroll Taxes 15% $0 $0 $0 $0 $0 $0
Other $0 $0 $0 $0 $0 $0
------------ ------------ ------------ ------------ ------------ ------------
Total Operating Expenses $0 $0 $0 $0 $0 $0

Profit Before Interest and Taxes $1,305,600 $1,566,720 $1,880,064 $2,256,077 $5,613,841 $9,700,717
EBITDA $1,305,600 $1,566,720 $1,880,064 $2,256,077 $5,613,841 $9,700,717
Interest Expense $0 $0 $0 $0 $0 $0
Taxes Incurred $391,680 $470,016 $564,019 $676,823 $1,684,152 $2,910,215

Net Profit $913,920 $1,096,704 $1,316,045 $1,579,254 $3,929,689 $6,790,502

Net Profit/Sales 59.50% 59.50% 59.50% 59.50% 59.50% 59.50%

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 Appendix
Table: Cash Flow

Pro Forma Cash Flow

Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11
Cash Received

Cash from Operations

Cash Sales $1,536,000 $1,843,200 $2,211,840 $2,654,208 $3,185,050 $3,822,060 $4,586,471 $5,503,766 $6,604,519 $7,925,423 $9,510,507 $11,412,609
Subtotal Cash from Operations $1,536,000 $1,843,200 $2,211,840 $2,654,208 $3,185,050 $3,822,060 $4,586,471 $5,503,766 $6,604,519 $7,925,423 $9,510,507 $11,412,609

Additional Cash Received

Sales Tax, VAT, HST/GST Received 15.00% $230,400 $276,480 $331,776 $398,131 $477,757 $573,309 $687,971 $825,565 $990,678 $1,188,813 $1,426,576 $1,711,891
New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $1,766,400 $2,119,680 $2,543,616 $3,052,339 $3,662,807 $4,395,368 $5,274,442 $6,329,331 $7,595,197 $9,114,236 $10,937,083 $13,124,500

Expenditures Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11

Expenditures from Operations

Cash Spending $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Bill Payments $20,736 $626,227 $751,473 $901,767 $1,082,121 $1,298,545 $1,558,254 $1,869,904 $2,243,885 $2,692,662 $3,231,195 $3,877,434
Subtotal Spent on Operations $20,736 $626,227 $751,473 $901,767 $1,082,121 $1,298,545 $1,558,254 $1,869,904 $2,243,885 $2,692,662 $3,231,195 $3,877,434

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $20,736 $626,227 $751,473 $901,767 $1,082,121 $1,298,545 $1,558,254 $1,869,904 $2,243,885 $2,692,662 $3,231,195 $3,877,434

Net Cash Flow $1,745,664 $1,493,453 $1,792,143 $2,150,572 $2,580,686 $3,096,824 $3,716,188 $4,459,426 $5,351,311 $6,421,574 $7,705,888 $9,247,066
Cash Balance $1,845,664 $3,339,117 $5,131,260 $7,281,832 $9,862,519 $12,959,342 $16,675,531 $21,134,957 $26,486,268 $32,907,842 $40,613,730 $49,860,797

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 Appendix
Table: Balance Sheet

Pro Forma Balance Sheet

Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11
Assets Starting Balances

Current Assets
Cash $100,000 $1,845,664 $3,339,117 $5,131,260 $7,281,832 $9,862,519 $12,959,342 $16,675,531 $21,134,957 $26,486,268 $32,907,842 $40,613,730 $49,860,797
Other Current Assets $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000
Total Current Assets $600,000 $2,345,664 $3,839,117 $5,631,260 $7,781,832 $10,362,519 $13,459,342 $17,175,531 $21,634,957 $26,986,268 $33,407,842 $41,113,730 $50,360,797

Long-term Assets
Long-term Assets $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000
Accumulated Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Long-term Assets $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000
Total Assets $3,100,000 $4,845,664 $6,339,117 $8,131,260 $10,281,832 $12,862,519 $15,959,342 $19,675,531 $24,134,957 $29,486,268 $35,907,842 $43,613,730 $52,860,797

Liabilities and Capital Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11

Current Liabilities
Accounts Payable $0 $601,344 $721,613 $865,935 $1,039,122 $1,246,947 $1,496,336 $1,795,604 $2,154,724 $2,585,669 $3,102,803 $3,723,364 $4,468,036
Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Current Liabilities $0 $230,400 $506,880 $838,656 $1,236,787 $1,714,545 $2,287,854 $2,975,824 $3,801,389 $4,792,067 $5,980,880 $7,407,456 $9,119,348
Subtotal Current Liabilities $0 $831,744 $1,228,493 $1,704,591 $2,275,910 $2,961,492 $3,784,190 $4,771,428 $5,956,113 $7,377,736 $9,083,683 $11,130,820 $13,587,384

Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Liabilities $0 $831,744 $1,228,493 $1,704,591 $2,275,910 $2,961,492 $3,784,190 $4,771,428 $5,956,113 $7,377,736 $9,083,683 $11,130,820 $13,587,384

Paid-in Capital $3,576,000 $3,576,000 $3,576,000 $3,576,000 $3,576,000 $3,576,000 $3,576,000 $3,576,000 $3,576,000 $3,576,000 $3,576,000 $3,576,000 $3,576,000
Retained Earnings ($476,000) ($476,000) ($476,000) ($476,000) ($476,000) ($476,000) ($476,000) ($476,000) ($476,000) ($476,000) ($476,000) ($476,000) ($476,000)
Earnings $0 $913,920 $2,010,624 $3,326,669 $4,905,923 $6,801,027 $9,075,152 $11,804,103 $15,078,844 $19,008,532 $23,724,159 $29,382,911 $36,173,413
Total Capital $3,100,000 $4,013,920 $5,110,624 $6,426,669 $8,005,923 $9,901,027 $12,175,152 $14,904,103 $18,178,844 $22,108,532 $26,824,159 $32,482,911 $39,273,413
Total Liabilities and Capital $3,100,000 $4,845,664 $6,339,117 $8,131,260 $10,281,832 $12,862,519 $15,959,342 $19,675,531 $24,134,957 $29,486,268 $35,907,842 $43,613,730 $52,860,797

Net Worth $3,100,000 $4,013,920 $5,110,624 $6,426,669 $8,005,923 $9,901,027 $12,175,152 $14,904,103 $18,178,844 $22,108,532 $26,824,159 $32,482,911 $39,273,413

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