1.

The project
DreamzZ In Deserts is a services business which is proposed to be setup near Sutluj River about 6 kms from the Bahawalpur city on the National Highway.It will be the premier, high-energy, restaurant and gaming zone at a distance from the main city. It is a comprehensive picnic spot with almost all luxuries: restaurant, gaming zones, boating and beautiful green lawns. The proposed project site has many advantages: it can attract customers from Bahawalpur City and other cities on Multan Road. It will prove to be a good site for the travelers as well. The project will be equipped with all locally available construction, machinery and raw material. Our goal is to remain a step ahead of our competition through an exemplary service provision. The area is in need of a warm and friendly place with excellent food. A place where you always know you will get the best of everything. We expect our guests to have more fun during their leisure time. A simple, yet unique, themed menu and atmosphere will create a sense of 'belonging' for locals and travelers.

2. Sponsors
The sponsors of the project are highly qualified and experienced people who have extensive knowledge of business management in industrial fields, namely

ALI RAZA HAFIZ MOHAMMAD SUFYAN KHALID AIMEN SHAMAS AISHA AKRAM ADEEL TAHIR

FAISAL QUREISHI SALMAN AHMED QAYYUM IRTAZA HAIDER KIRMANI HIRA SALEEM

3. Market
Our major target market will be the citizens of Bahawalpur, Lodhran and the passengers. Our project is highly proximate with the markets. We have two strong competitors: Taj and Libra, but our project will prove to be a real success due to its economical prices and uniqueness.

4.
100%.

Plant capacity

Our project will start with the operating capacity of 80% and will increase to 90% next year and then

5. Material and input

The basic raw material required for restaurant will be obtained from Bahawalpur City because it is easily available there and we have no need to go far. The raw material will be delivered by the suppliers at the spot on regular intervals.

6. Project Engineering
DreamzZ in Deserts does not need any heavy plant or machinery. A motor pump is the only machinery required for the lake. Games will be purchased from Lahore.

7. Man Power
We need qualified and good looking staff for good presentation in the front offices. Skilled labor will be in the back offices in the restaurant and the control of games and the security.

8.Implementation:

The total time period for the construction is estimated to be 6 months from the date of approval of finance.

9. Estimated Cost:
Total fixed cost of project + Initial permanent working capital Total cost of Project

Rs. (000)
40370 141 _ ____ 40511

10.Financial analysis/means of financing:

Sixty percent of Estimated cost of the proposed project will be obtained through loan and remaining 40% will be contributed by the owner.

Rs. (000) Debt 24307 Equity 16205 Total 40511

Debt equity Ratio

60: 40

11. Financial Assistance:

Rs. 24307000 will be obtained from MCB BANK Bahawalpur.

12. Estimated operating Results:

ITEMS
Sales Gross profit Operating profit Net profit

2011 Rs.000
87600 46753 27659 19738

2012 Rs.000
98500 52537 31534 23144

2013 Rs.000
109500 58422 35317 26496

13. Financial Position:

(Rs.000) ITEMS
Current Assets Fixed Assets Intangibles

2011
27703 35276 1030

2012
54362 31727 515

2013
84184 28178 0

14. Financial Ratios:

( Rs.000) ITEMS
Current Ratio Quick Ratio Debt Ratio Gross Profit Ratio Net Profit Ratio

2011
5.59 5.27 36.10% 53.37% 26.82%

2012
9.40 9.09 25.09% 53.33% 27.97%

2013
12.70 12.40 18% 53.35% 28.80%

Economic Indicators:
The project will certainly contribute in the GDP. It will be a good source of employment for the nearby citizens.

PARTNERSHIP DEED

THIS DEED of Partnership made at 12:00 p.m

THURSDAY day

JANUARY of 2009, between ALI RAZA, son of MOHAMMAD ASLAM RAZA, resident of BAHAWAL PUR of the ONE PART, HAFIZ MOHAMMAD SUFYAN KHALID, son of KHALID MEHMOOD MANSOOR of BAHAWAL PUR of the SECOND PART, ADEEL TAHIR son of, DR. TAHIR MAHMOOD ,resident of BAHAWAL PUR of the THIRD PART, FAISAL QUREISHI, son of, WASEEM IQBAL QURESHI, resident of BAHAWALPUR of the FOURTH PART, SALMAN AHMED QAYYUM, son of, MOHAMMAD QAYYUM, resident of BAHAWALPUR of the FIFTH PART, IRTAZA HAIDER KIRMANI, son of, DR. IQBAL HUSSAIN KIRMANI, resident of BAHAWALPUR of the SIXTH PART, HIRA SALEEM, daughter of, MOHAMMAD SALEEM RAZA, resident of BAHAWALPUR of the SEVENTH PART, AISHA AKRAM, daughter of, MOHAMMAD AKRAM, resident of BAHAWALPUR of the EIGHTH PART, AIMEN SHAMAS, daughter of, SHAMAS HAFEEZ, resident of BAHAWALPUR of the NINTH PART.

WHEREBY IT IS AGREED that the parties hereto (hereinafter together called the partners) shall become partners in the business of A

COMPREHENSIVE PICNIC SPOT for the term of FIFTEEN years with effect from JANUARY 1, 2010 upon the terms and conditions hereinafter contained namely:

(1)

The partnership shall be carried on in the name and style of M/s.

(2) The partnership business will be carried on at NEAR SUTLUJ RIVER BAHAWALPUR and/or at such other place or places, as shall be agreed to by the partners from time to time.

(3) The capital of the partnership shall be Rs. 16.205 million which shall be contributed by the partners in the following proportions.

First Party Second Party Third Party Fourth Party Fifth Party Sixth Party Seventh Party Eighth Party Ninth Party

11.11% 11.11% 11.11% 11.11% 11.11% 11.11% 11.11% 11.11% 11.11%

Rs. 1.8006 million Rs. 1.8006 million Rs. 1.8006 million Rs. 1.8006 million Rs. 1.8006 million Rs. 1.8006 million Rs. 1.8006 million Rs. 1.8006 million Rs. 1.8006 million

The further capital if any required by the partnership shall be brought by the partners and such additional capital brought by the partners shall be treated as loan to the firm and shall be paid interest @ 15 % p.a. out of the gross profits of the firm.

(4) The partners may agree to increase the capital of the firm by bringing in additional contribution in the proportion of the shares held by them in the

initial capital of the firm. At the time of increase of the capital, the additional capital of the partner or partners may be adjusted against the increased capital.

(5) The bankers of the partnership shall be MCB BANK MODEL TOWN BRANCH BAHAWALPUR. The bank account of the firm shall be operated upon by any partner.

(6) The net profits of the business shall be divided between the partners in the proportion of the capital and they shall bear all losses including loss of capital in the same proportion.

(7) The firm shall maintain usual account and other books at the place of business and they shall be kept properly posted up to date and shall not be removed from the place of business without the consent of all the partners. Each partner shall have free access to the books of account of the partnership at all times and shall be entitled to make such copies or extract therefrom as he may think fit.

(8) The First, Second, Third, Fourth, Ninth Party shall devote their whole time and attention to the interests of the business and shall be the working partners. They shall be entitled to equal remuneration for their working out of the amount computed in the manner laid down under section 40(b) of the

Income-tax Act, 1961. The remuneration so computed shall be worked out and credited in the books of account, at the close of the accounting year period.

(9)

Each partner shall(i) Be just and faithful to other partners in the transactions relating to partnership business; (ii) Pay his separate debts and indemnify the other partners and assets of the firm against the same and all other proceedings, costs, claims or demands in respect thereof; (iii) Give full information and truthful explanations of all matters relating to the affairs of the partnership to ail the partners at all times.

(10)

No partner shall without the consent of the other partners(i) Engage in any other business directly or indirectly.

(ii) Lend money or give credit of the goods of the firm to whom the other partners have previously forbidden him to trust. (iii) Mortgage, charge or assign his share in the assets or profits of the firm. (iv) Draw, accept or indorse any bill of exchange or promissory note on account of the firm. (v) Engage, remove or dismiss any apprentice, employee or agent of the firm.

(vi) Give any security or promise for the payment of money on account of the firm except in the ordinary course of business. (vii) Give bail, bond or guarantee or become surety for any person or do or knowingly suffer any thing to be done where the partnership property may be endangered. (viii) Buy, order or contract any property or goods for the firm exceeding Rs. 1 million. (ix) Sign any cheque on behalf of the firm to, a sum exceeding Rs. 0.5 million (x) Compromise or compound or, release or, discharge any debt due to the partnership.

(11)

The accounts of the partnership shall be maintained according to the financial year, from 1st January to 31st December.

(12)

Each partner, shall be entitled to 4 weeks holiday in each year and all the partners shall make choice of the holiday alternatively.

(13)

A new partner, may be introduced with the consent of all the partners on such terms and conditions as the partners agree with the Person to be introduced as a partner, in the firm.

(14)

On the death of any partner, during the continuance of the partnership, the firm shall not be dissolved, the surviving partners shall have the option to purchase the share of the deceased partner, in the partnership business and the property and goodwill thereof. The purchase price of the share of deceased partner shall be the amount at which such share shall stand in the last balance sheet which shall have been prepared prior to the death of the deceased or in the event of the death of either, partner before the preparation of the first balance sheet the sum credited to him as his share of capital, and interest at the rate of 15 % p.a. thereon in lie of profit from the date of the then last preceding annual account up to the date of death of the deceased. The partner, purchasing the share of the deceased partner, shall also enter, into a covenant to indemnify the personal representatives of the deceased partner from the existing and future debts, obligations ant liabilities of the partnership.

(15)

If a partner retires or becomes insolvent, then the partnership will not be dissolved, and the remaining partners shall have the option to purchase the share of such partner and the purchase price shall be calculated as given in the preceding clause.

(16)

All outgoings and expenses of the partnership and all losses or damages incurred, interest payable for any loans received and taxes, etc. shall be paid first out of the profits, next out of capital and in the case of further

deficiency, by the partners in the shares in which they are entitled to the net profits of the partnership business.

(17)

All partnership moneys, bills, notes, cheques and other instruments received by the partnership shall as and when received be paid and deposited in the bank to the credit of the firms' account, except such sums as are immediately required to meet the current expenses of the partnership firm.

(18)

All transactions of the firm shall be done in the name of the partnership and all goods shall be purchased or sold in the firm name. All bills, vouchers, delivery notes, receipts, etc. shall be issued in the name of the firm.

(19)

If any partner shall assign, charge or encumber his share in the partnership or shall become bankrupt or a lunatic or otherwise permanently incapable of attending to the partnership business or shall absent himself from the partnership business for more than 100 days, in any period of the twelve months except during his annual holiday without the consent of the other partners, or commit any breach of any of the provisions of this agreement or commits any criminal offence or do or suffer any act which would be a ground for the dissolution of the partnership by the court and in any such case it shall be lawful for the

other partners by notice in writing to the offending or incapacitated partner or his trustee or official assignee to determine the partnership whereupon the partnership so far as concerns such partner shall determine and the other partner shall have the option to purchase his share and pay the purchase price to the offending partner or his trustee or official assignee in accordance with clause 14 hereof.

(20)

Upon the determination of the partnership by efflux of time or in the case of death, retirement or expulsion of a partner from the partnership, the surviving or other partner shall not exercise the option of purchasing the share and interest of the deceased, retired or expelled partner or the partnership is determined by any other event not herein otherwise provided, a full and general account of the assets, credits, debts, liabilities of the partnership shall be taken and the assets and credits shall be sold, realised and the proceeds shall be applied in paying and discharging debts, liabilities and expenses of and incidental to the partnership business and the winding up affairs of the partnership affairs and subject thereto in paying to each partner any unpaid profits which may be due to him and his share of the capital and the balance of such proceeds shall be divided between the partners in the shares in which they are entitled to the net profits of the partnership and the partners shall execute, do or cooperate in all necessary or proper instruments, acts, matters and things for effecting or facilitating the sale, realisation and getting in of the

partnership assets and credits and the application and division of the proceeds thereof and for their mutual release or indemnity or otherwise.

(22)

All disputes and differences whatsoever which shall arise between the partners or between the partners and the personal representatives of the deceased partner relating to any matter whatsoever touching the affairs of the partnership or the interpretation of this agreement and whether before or after the determination of the partnership shall be referred to a single arbitrator, if the parties agree upon one, otherwise to three arbitrators one to be appointed by each party to the difference in accordance with and subject to the provisions of the Arbitration and Conciliation Act, 1996 or any statutory modification or re-enactment thereof for the time being in force.

(23)

All the other matters for which no provision is made in this deed, shall be decided by the majority of the partners for the time being of the partnership.

IN WITNESS WHEREOF, the parties hereto have hereunto set and subscribed their respective hands the day and year first hereinabove written.

ALI RAZA

IRTAZA HAIDER KIRMANI

HIRA SALEEM AKRAM

AISHA

AIMEN SHAMAS KHALID

HAFIZ MOHAMMAD SUFYAN

ADEEL TAHIR QURESHI

FAISAL

SALMAN AHMAD WITNESSES;

1. HASSAN DANIAL ASLAM

2. TAIMOOR HASSAN ABBASI

3. ABDUL MANAN KHAN

1 INTRODUCTION.........................................................................18 2 ENVIRONMENTAL ANALYSIS.......................................................18

2.1 EXTERNAL ENVIRONMENTAL ANALYSIS.....................................................19

2.1.1 Political............................................................................................................19 2.1.2 Economic.........................................................................................................19 2.1.3 Social...............................................................................................................19 2.1.4 Technological..................................................................................................19 2.1.5 Legal................................................................................................................19 2.1.6 Environmental.................................................................................................20
2.2 INTERNAL ENVIRONMENTAL ANALYSIS......................................................20

2.2.1 Resources (Capital).........................................................................................20 2.2.2 Resources (People)..........................................................................................20 2.2.3 ORGANIZATION STRUCTURE..................................................................20 2.2.4 Product Development......................................................................................22 2.2.5 Training...........................................................................................................22 2.2.6 Systems & Processes.......................................................................................22
3 CUSTOMER SEGMENTATION AND MARKET ANALYSIS...................23 3.1 COMPETITOR ANALYSIS.....................................................................24

3.2 SWOT ANALYSIS.........................................................................25 3.3 KEY ISSUES.................................................................................27 4 MARKETING OBJECTIVES............................................................27 5 MARKETING STRATEGY..............................................................28 5.1 STRATEGIC OVERVIEW......................................................................28 5.2 TARGETING AND POISONING STRATEGY....................................................28 5.3 POSITIONING, VALUE PROPOSITION .......................................................29 6 PRODUCT STRATEGY..................................................................29 6.1 PRODUCT PORTFOLIO.......................................................................29 6.2 PRODUCT / SERVICE ANALYSIS............................................................30 6.2.1 DESCRIPTION OF PRODUCT 1- (NAME OF THE PRODUCT):......................30

3.1.1 Competitor 1 ...................................................................................................24 3.1.2 Competitor 2....................................................................................................25

6.3 COMPETITIVE PRODUCTS,

6.2.1.1 Product Concept and History.......................................................................30 6.2.1.2 Features, Functions, & Benefits:.................................................................30 6.2.1.3 Target Market(s):.........................................................................................31 6.2.1.4Market Growth Rate:....................................................................................31 6.2.1.5Geographical Scope......................................................................................31
AND

ANALYSIS..................................................32

6.3.1 Substitute Products/Services...........................................................................32

6.3.2 Potential New Market Entrants.......................................................................33

7 BRAND STRATEGY.....................................................................33 8 PRICING....................................................................................34 9 INTEGRATED MARKETING COMMUNICATION PLAN.......................35

9.1.1 Advertising Activity........................................................................................35 9.1.2 Media Relations Activity.................................................................................36 9.1.3 Online Activity................................................................................................36 9.1.4 Sales Promotion Activity.................................................................................37 9.1.5 Events Activity................................................................................................37
9.2 MARKETING
AND

PROMOTION BUDGET.....................................................37

10 DISTRIBUTION STRATEGY.........................................................38

MARKETING PLAN
1 INTRODUCTION
DreamzZ In Desert is a restaurant, adult gaming zone and children gaming parlor. DreamzZ In Desert specializes in quality food and extensive collection of video games as well as legendary bowling alley, darts and snooker. Once the seniors are in the door they will be reminded of their childhood by the gaming zone and the music. Seniors will also be stimulated by the youths in the game room and the adults competing to be champions of the games. The comfort and excitement will continue to draw these customers back in. Customers in the entertainment industry flock to the most comfortable and affordable place they know. DreamzZ In Desert offers the comfort of separate environments for seniors, youths and families in the visible, but not audible rooms of the restaurant and lounge, the gaming room and the bowling alley. Youths will be interested in finding a fun place where they can spend time outside of the house with people their age. New customers are likely to be introduced to DreamzZ In Desert by friends. The reason for this is that most people only go out to their regular hang-outs, to places they feel comfortable, or to places where they will find their friends. Gamers will find the DreamzZ In Desert gaming zone when their friends ask them to meet.

Mission
The mission of DreamzZ In Desert is to provide the highest forms of entertainment and quality food to the Bahawalpur community. We offer the best eating, drinking, bowling, fishing, gaming.

2 ENVIRONMENTAL ANALYSIS

2.1 EXTERNAL ENVIRONMENTAL ANALYSIS 2.1.1 POLITICAL

Due to the political intensity in the country, there may be a change in rules and regulations that could affect the emerging business, which would be a great challenge for this particular industry. Since the political scenario of Pakistan is very weak.

2.1.2 ECONOMIC
In our economy, inflation is a major problem of people. During the inflation, everyone thinks a thousand times before making any purchase. Due to instability in economic situation the rates of taxes vary time to time. At the present situation most the businesses in Pakistan are facing recession due to the worst economic condition.

2.1.3 SOCIAL
People are becoming more concerned about their health with the passage of time. Now people seek for more nutritious and hygienic food along they want a recreational environment which can be healthy for them. They demand single place for all type of entertainments. That is a challenging factor for the recreational industry.

2.1.4 TECHNOLOGICAL
Technology plays a pivotal role in the present era. New entrants must adopt new inventions to fulfill the technological requirements of the customers. This fact could be used as a competitive edge in order to compete in the market.

2.1.5 LEGAL
Legal constraints require all the rules and regulations be obeyed by any business under the country Law. Every business should also adopt any changes which would be brought the government legal authorities.

2.1.6 ENVIRONMENTAL
DreamzZ In Desert will consider the tropical weather condition of the region. Such type of outstanding environment would be provided that will attract maximum number of potential customers. People would be compelled to come to a place that will be pleasing in appearance and arousing their interest.

2.2 INTERNAL ENVIRONMENTAL ANALYSIS 2.2.1 RESOURCES (CAPITAL)

Capital resources of DreamzZ In Desert will include equipment, land, building, furniture, security equipments.

2.2.2

RESOURCES (PEOPLE)

The recruitment & Selection process is structured. We advertise jobs through newspapers by giving clear information of job description & specification. Selection is done by interviews & demonstration.

2.2.3 ORGANIZATION STRUCTURE

The Organizational structure of DreamzZ In Desert is given below:

General Manager

Kitchen staff Shift runner restaurant Waiters Cashiers Assistant GM1 Assistant GM2

Shift runner of Gaming Zone(K)

Cashiers

Shift Runner of Gaming Zone(A)

Cashiers

Operations Manager

Human Resource Manager

Marketing Manager

Finance Manager

Assistant OM

Assistant MM

Assistant FM

Gardener Electricians Sweepers Cashiers Guards

Computer Operators

2.2.4 PRODUCT DEVELOPMENT

DreamzZ In Desert will be providing exclusive and efficient in-time dining delivery to its customers which will me at most 20 minutes. Customers will be given a special welcome. DreamzZ In Desert will provide its service for professionals to arrange their meeting in an executive environment. DreamzZ In Desert will also be providing arrangements for its customers to organize their informal events, shows and parties. DreamzZ In Desert will be a Hotspot for each and every type of customers especially for the business executives. As in present age, the need of internet has been increases to a great extent, realizing this special need of business professionals as well as for the young generation, as we know that they are fond of internet surfing too. DreamzZ In Desert has decided to provide an environment of wireless internet facility for its customers. DreamzZ In Desert will give free complementary welcome drink in the first month to its customers in order to enhance relations with the customers.

2.2.5

TRAINING

We use modern tools to train the employees. Flexibility of environment is ensured. Pre & post test are conducted to evaluate reliability & validity of training activities.

2.2.6

SYSTEMS & PROCESSES

The Picnic Spot have a General Manager, Managers, Assistant Managers & other staff members. GM will approve all plans & look upon all the operations. There are four managers i.e. Human Resource Manager, Finance Manager, Marketing Manager & Operations Manager. Managers are responsible for all the

operations of their respective department. All Managers will report to GM. They guide their assistants for implementation of plans. There are three Shift runners of a restaurant & two gaming zones. Assistant managers will report to their respective managers. Shift runners will report to Assistant GM. Kitchen staff, cashiers & waiters are working under shift runners. Cashiers & computer operators will report to Finance manager. Rest of the staff includes guards, sweepers, gardener & electrician will report to Operations Manager.

3 CUSTOMER SEGMENTATION

AND

MARKET ANALYSIS

DreamzZ In Desert intends to cater to a wide group of people. We want everyone to feel welcome and relaxed in a cozy atmosphere with a wide and varied menu. It is our goal to have "something for everyone" everyday on our menu. In looking at our market analysis, we have defined the following groups as targeted segments. DreamzZ In Desert has done segmentation on Demographic basis.

Total Market Size in terms of sales and people

Estimated combined annual turnover = 2.5 million rupees/Month = 30 million rupees/Year Total market size in terms of customers = 350 customers/ day = 10500/Month = 126000/ Year

Key Publications:
Magazine: Purple Aroura Website: www.brandscenario.com

Key Organizations
In case of any events, funfair or shows, District Government will be involved for the security purpose. District Government will be the custodian of all such gatherings to ensure foolproof security so that each class of customer feels safe to join DreamzZ In Desert on any event.

3.1 COMPETITOR ANALYSIS

There are total four or five competitors prevailing in the related market, only two are the main competitors which are as follows:

3.1.1 COMPETITOR 1 Name: Libra Valley Strength #1

The open air atmosphere of Libra Valley (Restaurant) is its main strengths, a traditional touch has been given to the atmosphere lake in the central part of the lawn and huts all around gives a unique view which provides customers a pleasant feelings.

Strength #2
Libra Valley provides a special warm welcome service to all of its customers which give its business a rhythm of professionalism.

Weakness #1
Due to open air atmosphere in the Libra Valley customers avoid to come on winter afternoons and for lunch in summer.

Weakness #2

As travelers are in a hurry so they want a quick and fast food which is not provided by Libra Valley.

3.1.2 COMPETITOR 2 Name: Taj Restaurant Strength #1

A classical and unique sitting atmosphere is being provided to the customers. Halls, lawn and indoor area is also given to satisfy all type of customers.

Strength #2
Taj Restaurant gives 24/7 service.

Weakness #1
Because of the distance from the main city, it becomes very difficult for the people to bring their guests to Taj Restaurant.

Weakness #2
Relative to the atmosphere and quality of services given at Taj Restaurant, the prices are very high, which de-motivates customers from coming to Taj Restaurant.

3.2 SWOT ANALYSIS Strengths:

Main strength of DreamzZ In Desert is its big and beautiful lake. Special care of hygiene factor is been taken.

Strength of DreamzZ In Desert is its wireless internet atmosphere, covering each and every corner of DreamzZ In Desert, to facilitate its business class customers as well as young generation.

All in one place i.e. food ,entertainment, business etc

Weakness:
As DreamzZ In Desert is situated at a distance from the main city, it would be difficult for normal citizen to come at DreamzZ In Desert. Prices will be little bit higher than the competitors because of the additional and unique facilities that have been provided to the customers.

Opportunities:
DreamzZ In Desert can attract and catch a large numbers of customers including business professionals for their executive meetings ,travelers for satisfying their hunger need, youngsters for relaxing their minds etc. all type of potential customers can be grabbed by the exceptional services that are not offered by the competitors. DreamzZ In Desert will provide job opportunities for a number of people so it will be a source of reducing unemployment in this small city.

Threats:
The situation of law and order will be a main threat to DreamzZ In Desert .as the security condition of Pakistan for the last few months had been much crucial so it will be a challenge to maintain peace and calm in customers mind as well as the DreamzZ In Desert area.

Threats of new entrants will exist in the market as well. Realizing the recreational need of the people of Bahawalpur, many a groups are trying to make picnic spots and entertainment points at the same area that can also be a threat to DreamzZ In Desert.

3.3 KEY ISSUES

Main issues that DreamzZ In Desert will face are as follows: DreamzZ In Desert will be a comprehensive picnic spot for all classes of people, providing various recreational and entertainment facilities under one roof for its customers. Customers will avoid coming at DreamzZ In Desert because if the worst condition of law and order in Pakistan. Another main issue of the DreamzZ In Desert is its far away location from the main city, as time and convenience are the most important matters with the people so they will avoid going to picnic spot time and again.

4 MARKETING OBJECTIVES
Main objectives of DreamzZ In Desert will be as follows: Realizing the recreational needs of people, we are giving the assurance of satisfaction of their corresponding needs according to each specific age group. We will make people realize that they can consumer their free time enjoying at DreamzZ In Desert rather than wasting at their homes. We will provide awareness of the uniqueness and innovations of our services in customers mind.

DreamzZ In Desert will assure the social security of its customers so that the fear of critical conditions of this particular geographical area from the customers mind must be prevented.

Marketing of DreamzZ In Desert will attract maximum numbers of customers in order to generate more sales & profit.

5 MARKETING STRATEGY 5.1 STRATEGIC OVERVIEW

There are many picnic spots in Bahawalpur area but DreamzZ In Desert will be the first spot that will provide self fishing and cooking facility at the point. In addition DreamzZ In Desert is also providing the gamin zone for adults as well as children which will attract even more customers. According to the focus group interviews people are more willing to go the place where that can enjoy all type of entertainment for each age group under a single roof assuring hygiene factor, this will be only possible with DreamzZ In Desert where each customers class will be satisfied to high extent.

5.2 TARGETING AND POISONING STRATEGY

We see DreamzZ In Desert as appealing to 5 major target markets i.e. Families: The perfect place for a family dinner. Families will come for the accommodative menu and friendly service. The excellent value in their meals will keep DreamzZ In Desert in favor with the parents. Children: Children are more attracted towards video games, so we have arranged high quality video games which will prove healthy for them. Business Professionals: They work hard all day and often stay overnight in a strange city. They need a competent establishment that helps impress his clients

and prospects. Afterward, they want to relax and use the money they are making. They are the people that spend the most on drinks, food and tips. Teenagers: We will attract them with our decor and gaming zone. Our international menu, striking artwork, drink tasting evenings and events, excellent service and engaging clientele will confirm the feeling of being in "the coolest place". Travelers: Bahawalpur is a city that attracts many travelers while passing the city through the High Way. DreamzZ In Desert will be a destination with its attractive atmosphere, outrageous menu, and outdoor pavements.

Primary customers:
The main focus of DreamzZ In Desert is upon families of Bahawalpur and youngsters as well.

Secondary customers:
All the travelers and business executives will be the secondary customers of the DreamzZ In Desert.

5.3 POSITIONING, VALUE PROPOSITION

The competitive edge of DreamzZ In Desert over its competitors is that DreamzZ In Desert provides all types of recreational facilities for its customers at a single place which includes food, games and fishing etc.

6 PRODUCT STRATEGY 6.1 PRODUCT PORTFOLIO

Food Adult gaming zone Kids gaming zone

Fishing

6.2 PRODUCT / SERVICE ANALYSIS 6.2.1 DESCRIPTION OF PRODUCT 1- (NAME OF THE PRODUCT): 6.2.1.1 PRODUCT CONCEPT Food:
The quality of food which is being provided by the competitors to its customers is not up to the standards, so DreamzZ In Desert will provide high quality food to its customers according to its customer needs.
AND

HISTORY

Kids gaming zone:

As people bring their children to the restaurants for family meals, so usually children get bored. DreamzZ In Desert has arranged various types of new video games keeping in view the childrens interest.

Adult gaming zone:

There has never been adult gaming zone in Bahawalpur region to entertain adults with high quality game like snooker, darts, bowling etc DreamzZ In Desert is pleased.

Fishing:
There is no proper fishing point in Bahawalpur. DreamzZ In Desert offers this unique facility of fishing to its customers so that they can enjoy natural environment, where they can catch fish of their own choice eat it readily.

6.2.1.2 FEATURES, FUNCTIONS, & BENEFITS: Feature

Food

Function
To satisfaction of hunger need.

Benefit and PROOF

Customers will enjoy high quality food with very delightful taste.

Kids gaming zone

recreation

Children can enjoy latest games at DreamzZ In Desert Adults will enjoy unique games at DreamzZ In Desert in healthy and soothing environment. A new type of adventurous activities is introduced at ps where youngsters as well as families can enjoy this exceptional meal.

Adult gaming zone

Recreation

Fishing

hunger and adventure

6.2.1.3 TARGET MARKET(S):

Population of Bahawalpur = 880,359 Target market of DreamzZ In Desert = 105,642

6.2.1.4MARKET GROWTH RATE:

Potential Customers Business Professionals Children Travelers Families Teenagers Total Growth 17% 14% 15% 13% 12% 2010 50,400 31,500 12,600 18,900 12,600 2011 58,968 35,910 14,490 21,357 14,112 2012 68,992 40,937 16,663 24,133 15,805 2013 80,720 46,668 19,162 27,270 17,701 191,521 2014 94,442 53,201 22,036 30,815 19,825 230,319 CAGR 17.00% 14.00% 15.00% 13.00% 12.00% 14.99%

14.99% 126,000

144,837 166,530

6.2.1.5GEOGRAPHICAL SCOPE
After the success of current business we plan to expand our business in other cities also; Multan and Rahim Yar Khan will be our priorities.

6.3 COMPETITIVE PRODUCTS, AND ANALYSIS 6.3.1 SUBSTITUTE PRODUCTS/SERVICES Competitor 1:

Name: Libra Valley

Contact Details:
Address: Libra CNG, Near Toll Plaza Bahawalpur. Telephone: 0302-8682868

Products/Service Competition Areas:

Libra valley competes with DreamzZ In Desert in the restaurant area. Libra is providing continental food in a wide range, so that will a competition area in which Libra and DreamzZ In Desert will compete with each other.

Product Position & Product Strategy:

Libra valley positions its product and services in away that it becomes the product for the elite, upper and middle class only which comprises of only 2-2.5% of the population of Bahawalpur.

Pricing Strategy:
Libra Valley use market skimming pricing strategy.

Promotional Strategy:
Libra Valley organized various events in the beginning to get the attraction of the customers. Later on they used word of mouth as their promotional strategy.

Perceived Strengths:
The open air and traditional environment of Libra Valley is its main strength.

Perceived Weaknesses:
Libra Valley does not provide fast food products to their customers which is their main weakness.

Competitor 2:
Name: Taj Restaurant Contact Details: Address: Taj Restaurant, Adavan road. Bahawalpur Telephone: 0342-5732344

Products/Service Competition Areas:

Taj Restaurant also competes with DreamzZ In Desert in the food sector.

Product Position & Product Strategy:

Taj Restaurant positions its products and services mainly for travelers and families which consist of only 13-17% of the population of Bahawalpur.

Pricing Strategy:
Taj Restaurant used market penetration pricing strategy.

Promotional Strategy:
Taj Restaurant focused on a very interesting promotional strategy that they provided that they provided their customers cars stickers with Taj name and some Holy verses on it.

Perceived Strengths:
The classical sitting arrangement of Taj Restaurant is its main strength.

Perceived Weaknesses:
Taj Restaurant also provides continental food only hygiene factors are weakness of Taj Restaurant.

6.3.2 POTENTIAL NEW MARKET ENTRANTS

There are limited numbers of competitors of DreamzZ In Desert in the market and it is open for all type of potential competitors relating to this particular sector. A group is planning to open a Water Park in the surrounding area which can be a great competitor of DreamzZ In Desert.

7 BRAND STRATEGY

Brand name: DreamzZ In Desert Slogan: TURNING MIRAGE INTO REALITY Brand Logo:

Brand Laddering:
In near future, when our business could be able to earn heavy profits, we have a plan for expansion in our business and we will be offering mini water park and min Golf at DreamzZ In Desert. There are some water parks in and near Bahawalpur but they all are jerry-built, but DreamzZ In Desert will take hygiene factor in to consideration and offers water park facility up to standards of people of Bahawalpur. Launching of mini Golf is an Entrepreneurial thinking because mini Golf is not yet offered by anyone in Bahawalpur and surrounding areas. Mini Golf is highly demanded by the business executives, elite class and old citizens as DreamzZ In Desert is basically built for the satisfaction of all classes of people.

8 PRICING
We are using market skimming pricing strategy at DreamzZ In Desert. As the spot is at a faraway location from the main city so the supply of raw material and the other resources will be high as compared to the local market. As our products and services are unique so we will change high prices because there is a positive relation between price and quality.

Version Upgrade/Competitive Upgrade Matrix Product

Fishing Children Gaming zone Adult Gaming zone a)Snooker

Retail Price
Rs.500 per fish Rs.20 per coin Rs.30 for billiard per game Rs.50 for snooker per game

b)Bowling c)Darts Restaurant

Rs.250 for 10 shots Rs.100 for 10 shots As DreamzZ In Desert has adopted market skimming pricing strategy because of high quality services, therefore the prices of our restaurant menu will be high but the competitors prices will also be taken into considerations.

9 INTEGRATED MARKETING COMMUNICATION PLAN 9.1.1 ADVERTISING ACTIVITY

1) Description of activity: A non-personal promotional activity used to attract massive audience. Advertising is always paid. 2) Objective: The objective of advertisement is to creative awareness among the people of Bahawalpur about DreamzZ In Desert. 3) Estimated cost: Estimated cost is Rs.200,000 4) Comments:

Advertisement will bring a lot of people in the circle of potential customers of DreamzZ In Desert.

9.1.2 MEDIA RELATIONS ACTIVITY

1) Description of activity: Non paid communication activity used to build relations with electronic and print media. 2) Objective: Media relations will create a great awareness among the folks of Bahawalpur and the surrounding areas. 3) Estimated cost: It is a non-paid activity. 4) Comments: In case of any event or exhibition, the local media will be invited to air the event.

9.1.3 ONLINE ACTIVITY

1) Description of activity: Production of a web site that will create awareness among the people and to promote DreamzZ In Desert. 2) Objective: A website which provides convenience to the customers. 3) Estimated cost: Estimated cost will be Rs.20,000 4) Comments: A private web site of DreamzZ In Desert will create ease for the customers, they can get membership for the adult gaming club at the web site.

9.1.4 SALES PROMOTION ACTIVITY

1) Description of activity: Each of the customers will get complimentary seasonal drinks for the first two months. 2) Objective: Sales promotion will attain maximum number of customers to DreamzZ In Desert they will get an incentive. 3) Estimated cost: Estimated cost will be Rs.300,000. 4) Comments: Sales promotion activity is used because culture of Pakistan is related to buying where buy one get one free situation is widely famous.

9.1.5 EVENTS ACTIVITY

1) Description: Events will be organized on the inauguration of DreamzZ In Desert. Other types of events like funfairs, exhibitions, parties, etc. will also be arranged. 2) Objective: Events are arranged to gather large number of customers. 3) Estimated cost: Estimated cost will be Rs.800,000. 4) Comments: A grand opening function will be organized on the inauguration night. Other musical concerts and parties will also be organized to capture a number of youngsters and families to DreamzZ In Desert.

9.2 MARKETING AND PROMOTION BUDGET

We are using a number of IMCs for the promotion of DreamzZ In Desert that will include: Advertising activity Media relations activity Online activity Events activity Sales promotion activity

The total estimated cost for all these activities is Rs.1, 300,000

10 DISTRIBUTION STRATEGY
DreamzZ In Desert will have exclusive distribution strategy. DreamzZ In Desert will be only picnic spot of its type in Bahawalpur area. However we plan to extend our outlets in new geographical areas if this plan achieves success. As DreamzZ In Desert itself the producer/, manufacturer, distributer and retailer of its own services so DreamzZ In Desert will have direct selling strategy. Supplies of DreamzZ In Desert will be outsourced. External suppliers will provide all the raw materials of any type to DreamzZ In Desert.

Financial Plan

Annexure-I

DreamzZ In Desert

Cost of Land
Sr.No .

Description

Area in acres 3

Unit Cost 250

Total Cost Rs.(000) 750 40 790

1 Lease Advance Payment Registration and Legal 2 charges Total Cost Of Land

The total land required for the project is three acres. Land will be obtained on lease. The lease contract will be for 20 years. Lease rent is Rs. 50000/ acre per year/ five years lease rent has to be paid in advance i.e. Rs. 7500000/-. Registration expenses for lease contract are Rs. 40000/-

Annexure-II

DreamzZ In Desert
Cost of Civil Works
BUILDING: Description Area. Sq.ft Rate Sq. ft Amount (000)

Restaurant Kids gaming zone Adult Gaming zone Masjid Lake 2 Bridges Boundary Wall Hutt Pavement Fountain Parking Area Five lawns Contingency 5 %

10,920 4,095 5,460 2,730 35,600 300 1,448 79 430 28 2,760 32,760

400 400 400 400 150 350 150 150 75 -

4,368 1,638 2,18 4 1,09 2 5,34 0 10 5 21 7 14 1 6 5 5 0 7 0 2,45 7 87 5 18,60 1

Total

53,666.0

There are total six columns in above mentioned chart. Ist column describes the items which are to be constructed. There are four main buildings; restaurant, two gaming zones and a masjid. All the buildings are of RB type. Second column shows area covered by each item. Last column describes the total cost of each item. The estimated cost of civil works is 18.368 million.

Annexure-III

DreamzZ In Desert
Plant And Machinery
S.NO . 1 2 3 4 5 6 7 DESCRIPTION Generator Pump Electronic Games Roller coaster Dodge Cars Bowling Snooker Qty 1 1 5 1 15 1 3 Rs.(000) 1,000 600 750 400 600 1,000 1,000

8 9 10 11 12 13 14 15

Darts Jumping Pads Basket Bowls Boats Routers Multimedia CCTV Computer Total

5 1 1 7 2 2 6 4

5 30 10 35 15 150 18 120 5,733

Estimated cost of machinery is related with the cost of those fixed assets which help in generating revenues. There are two columns in the above annexure. First column shows all the fixed assets and machinery. Second column shows the cost of each fixed asset or machines. Total estimated cost of machines is 5.733milion.

Annexure-IV

DreamzZ In Desert
Estimated Cost of Furniture and Fixtures
Sr. No. Description Qty Total Cost In (000) 2200 75 75 5 20 60 420

1 2 3 4 5 6 7

Air Conditioners Wall Fans Energy Savers Search Light with Small Poll Search Lights with Large poll Boundary Wall Lights Table Sets For restaurant

8 50 500 2 2 30 30

8 9 10 11

Bench Chairs In Adult Gaming Zone Fixtures Crockery Total

15 30 -

30 30 6000 1000 9915

This annexure shows the estimated cost of furniture and fixture which is Rs. 9.915 million. 1st column shows the description of furniture and fixtures and next column shows their estimated cost.

Annexure-V

DreamzZ In Desert
Pre Operating Expenses
Sr. No. Description Total Cost In (000) 750 10 35 500 200 50 1545

1 2 3 4 5 6

Advance Lease payment Registration And Legal Charges Printing And Stationary Wages During Construction Consultancy And Report Telephone And Postage Total

Pre operating expenses incurred before starting operations. 1st column shows list of all possible pre operating expenses. Pre operating expenses include advance lease rental payment, registration charges, consultancy fees, printing and stationary, telephone and postage expenses. Total estimated pre operating expenses are 1.5 million.

Annexure-VI

Dreamzz In Desert
Estimated Cost of The Project
Sr.No. Description 1 2 3 4 5 6 7 8 Land Building Plant & Machinery Vehicles Furniture & Fixture Pre-operating Expenses Interest during construction Estimated Fixed Cost Total Cost In Rs. (000) 79 0 18,60 1 5,73 3 14 0 9,91 5 1,54 5 3,64 6 40,37

Add: Net Initial Working Capital

0 14 1 40,51 1

Total Estimated Cost Of Project

There are two columns in this annexure. 1st column describes the major items of the project such as land, building, machinery, furniture and fixture, office equipment, pre operating expenses and vehicles. Second column shows the cost. The total estimated cost of project is Rs. 40.5 million.

Annexure-VII

DreamzZ In Desert
Admin, Selling And General Expenses
Year wise Administrative and General Expenses Sr. No. Designation No. of Employees 1 2 3 4 5 6 7 8 General Manager Assistant General Manager Shift Runners Operation Manager Assistant Operation Manager HR Manager Marketing Manager Assistant Marketing Manager 1 2 3 1 1 1 1 1 Rs.(000) Salary/Month 1st year 40 40 45 18 8 18 18 8 2011 480 480 240 960 96 144 432 96 2012 528 528 264 1,056 106 158 475 106 2013 581 581 290 1,162 116 174 523 117

9 10 11 12 13 14 15 16 17 18 19

Finance Manager Assistant Finance Manager Chef Helpers Waiters Cashier Computer Operator Electrician Sweeper Guards Gardeners

1 1 4 20 20 3 4 2 8 8 2 84

18 8 80 120 120 30 32 12 48 48 12 723

216 96 960 1,440 1,440 360 384 144 576 576 144 17,568

238 106 1,056 1,584 1,584 396 422 158 634 634 158 19,325

262 117 1,162 1,742 1,742 436 464 174 697 697 174 21,257

General Expenses 2011 Sr.No 1 2 3 4 5 6 7 Description Traveling Expenses Printing & Stationary Phone, Postage Entertainment Legal Fee Broad Band Internet Miscellaneous Total Selling Expenses Selling expenses 284 144 160 400 200 100 200 38 1,242

Rs.(000) 2012 158 176 440 220 110 220 42 1,367

2013 174 194 484 242 121 242 46 1,503

312.4

343.64

There are total six columns in administrative expense table. 1st column shows designation of employees. Second column shows the number of employees. Third column shows the monthly income of the employees and the next three column show the annual salary with an increase of 10% per annum. There are daily two shifts.

There are total four columns in general expense table. First column illustrates the description of all general expenses; travelling expense, printing and stationery, telephone and telex, entertainment, broad band internet, legal fee and miscellaneous. Next three columns show the yearly expenses with an increase of 10% per annum due to expected inflation. Selling expenses include Integrated Marketing Costs. Selling expense also increase by 10 % every year.

AnnexureVIII

DreamzZ In Desert
Depreciation
Depreciation Schedule of Fixed Asset Sr.No Description 1 Plant & Machinery (@ 10%) 2 Building (@ 5%) 3 Vehicles (@ 20%) 4 Furniture & Fixture (@ 20%) 5 Office Equipment Total Note: Depreciation will be constant over the life of assets.

Total Cost (000) 5733 18368.07 140 9915 232.95 34389.02

Dep.Exp. (000) 573.3 918.4 28 1983 46.59 3549.29

Year Wise Depreciation Sr.No 1 Dep. Expense

2011 3,54 9

Years Rs.(000) 2012 3,549

2013 3,549

Depreciation expense is incurred on fixed assets. We have used straight line depreciation method. This schedule consists of three columns. Ist column describe depreciable fixed assets such as building, machinery, furniture and fixture, office equipment and vehicles. Estimated useful life of building is 20 years, machinery 10 years, furniture and fixture, office equipment, vehicle 5 years.

Second column shows the total cost of fixed assets. Third column shows the depreciation expense. Depreciation will remain constant throughout the life of assets.

Annexure-IX

DreamzZ In Desert
Estimated Cost of Raw Material
Sr.No 1 2 3 4 5 6 7 8 9 10 11 Description Chicken Mutton Sea food Floor Oil Spices Beef Beverages Vegetables Dairy Products Sugar Total Costof Raw Materials (Grand Total)

QTY
140 kg 35 kg 25 kg 150 kg 40 kg 20 kg

2 Day
22.4 8.75 20 4 4.8 16 8 40 30 17 1.05 172.05

Cost Per Year In (000)

2011 4032 1575 3600 729 864 2880 1440 7200 5400 3060 189 2012 4536 1772 4050 820 972 3240 1620 8100 6075 3443 213 2013 5103 1993 4556 923 1094 3645 1823 9113 6834 3873 239

15 kg

31,250

35,156

39,062

Sr.No Description 1 2 3 4 5 6 7 8 9 10 11 Chicken Mutton Sea food Floor Oil Spices Beef Beverages Vegetables Dairy Products Sugar Total Cost of Raw Materials (Grand Total)

QTY
140 kg 35 kg 25 kg 150 kg 40 kg 20 kg

Per Day 11.20 4.38 10.00 2.03 2.40 8.00 4.00 20.00 15.00 9.00 0.80

Cost Per Year In (000)

2011 4032 1575 3600 730.8 864 2880 1440 7200 5400 3240 288 2012 4536 1772 4050 822 972 3240 1620 8100 6075 3645 324 2013 5103 1993 4556 925 1094 3645 1823 9113 6834 4101 365

15 kg

31,250

35,156

39,062

There are total six columns. 1st column describes the major raw material used in the restaurant. The raw material which will be used is; chicken, mutton, beef, sea food, flour, oil, vegetables, spices, dairy products and sugar.

Second column shows the estimated quantity of raw material consumed per day. Last three columns show the yearly cost of raw material. We will maintain the two days raw material consumption as inventory.

Annexure-X

DreamzZ In Desert
Manufacturing Overheads
Manufacturing Overhead Cost Variable Manufacturing Expenses Power:(200KV*24hrs*300days*Rs12) * 80% Total Variable Cost 12096 12096

Year ending Manufacturing Overheads as per Different Capacities Description Variable cost Total Cost of Manufacturing Overheads 2011 80% 6,048 6,048 Rs. (000) 2012 90% 7,258 7,258 2013 100% 8,467 8,467

Overheads are the costs which are related to the operations. Variable overheads vary with the intensity of operations. 1st column shows the description of variable cost which is power. Next three columns shows overhead incurred every year.

Annexure-XI

DreamzZ In Desert
Initial Net Working Capital Requirement
Initial Net Working Capital Requirement

Sr.No 1 2 3 4

Description Current Assets Inventories Raw Materials Requirement ( 2 week) Advances Deposits and Prepayments Cash Total Current Assets Possible Current Liabilities Initial Net Working Capital

(Rs: 000) 115 20 6 141 141

These are the current assets which we need before starting operations. Major current assets are raw material inventory, advances and prepayments and cash. Total initial networking capital is Rs. 141000.

Annexure-XII

DreamzZ In Desert
Sales Revenue

Sales Revenue: Description 2011 87, 600 Rupees in ''000" 2012 98, 500

2013 109, 500

Total Sales

The estimated per day sales is Rs. 300 thousands. At 100 % capacity our sales revenue is 109.5 million. At 1st year we operate at 80 % capacity and 90% in the second year.

Annexure-XIII

DreamzZ In Desert
Income Statement
Year ending 30th September: 2011 Rs. In (000) 2012 2013

Sales Less: COST OF SALES: Raw Materials Factory Overheads Depreciation Total Cost Inventory adjustment-Less Cost of Sales Gross Profit Less: Operating Expenses: Administrative Expenses General Expenses Selling Expenses Total Operating Expenses Operating Profit Other Expenses: Amortization of Pre-Production Expenses Financial Charges on: Long Term Debt Bank Borrowings Profit before Tax Less: Tax 16% Net Profit

87600 31,250 6048 3549.29 40,847 40,847 46,753 17568 1242.4 284 19094.4 27,659

98500 35,156 7257.6 3549.29 45,963 45,963 52,537 19324.8 1366.64 312.4 21003.84 31,534

109500 39,062 8467.2 3549.29 51,078 51,078 58,422 21257.28 1503.304 343.64 23104.224 35,317

515 3645.99 23,498 3759.65 19,738

515 3466.41 27,552 4408.34 23,144

515 3259.90 31,543 5046.80 26,496

Income statement shows operating performance of a business. It is usually made after six months or 1 year. This annex shows the estimated income statement of the 1st three operating years. We are having a net profit of Rs. 19.73 million in 1st year, Rs. 23.14 million in second year and Rs. 26.49 million in third operating year.

Annexure-XIV

DreamzZ In Desert
Balance Sheet
End of Year ending 30th September: ASSETS: CURRENT ASSETS: Cash and Bank Balance Inventory of Raw Materials 5 115 26,120 1,562 52,585 1,758 82,211 1,953 Construction 2010 2011 Operating Years 2012 2013

Rupees ("000")

Advances, Deposits and Prepayments Total Current Assets FIXED ASSETS: Fixed Assets at Cost Accumulated Depreciation on Fixed Assets Fixed Assets Net Intangibles Total Assets LIABILITIES AND EQUITY: CURRENT LIABILITIES: Bank Borrowings Taxes Payable Dividend Payable Worker's Fund Payable Current Maturity of Log Term Debt Total Current Liabilities LONG TERM DEBTS: Long Term Debt Total long Term Debt EQUITY: Paid-Up-capital Retained Earnings Total Equity Total Liabilities and Equity

20 141

20 27,703

20 54,362

20 84,184

38,825 38,825 1,545 40,511

38,825 3,549 35,276 1,030 64,009

38,825 7,099 31,727 515 86,604

38,825 10,648 28,178 112,362

3,760 1,197 4,957 1,377 5,785 1,583 6,630 4,408 5,047

24,307 24,307 16,204 16,204 40,511

23,109 23,109 16,204 19,738 35,943 64,009

21,733 21,733 16,204 42,882 59,086 86,604

20,149 20,149 16,204 69,378 85,582 112,362

Balance sheet shows the financial position of business at any point of time. Balance sheet shows the total assets and liabilities and equity of the business.

Annexure-XV

DreamzZ In Desert
Cash Flow Statement
End of Construction Years ending 30th September:
SOURCES OF FUNDS:

Operating Years 2011 2012 2013

2010

Operating Profits Add : Depreciation

Total Funds from Operation

27,65 9 3,54 9
31,208

3 1,534 3,549
3 5,083

35,317 3,549
38,867

Other Sources:

Long Term Loan Bank Borrowings Paid-Up Capital

Total Sources of Funds APPLICATION OF FUNDS:

24,307 16,204
40,511

31,208

3 5,083 38,867

Investment in Fixed Assets Financial Charges during Construction Pre-Production Expenses

Repayment of:

35,179 3,646 1,545 -

3,64 6 -

1,197 3,466

1,377

Long Term Loan Bank Borrowings

Financial Charges On:

Long Term Loan Bank Borrowings

PAYMENT OF:

3,260

Taxes Dividends Worker's Fund Short Term Investment Increase in Current Assets (Other than Cash)
Total Application of Funds

3,760 1,44 7
5,093

4,408 195
9,240

195
8,619

135
40,506

Cash Surplus/(Deficit) Cash at the Beginning of the Year

Cash at the end of the year

5 5

26,11 5 5
26,120

2 6,464 2 6,120
5 2,585

29,626 52,585
82,211

This annexure shows estimated cash inflow and outflow in first three operating years. Major sources of funds are long term loan and paid up capital. Funds are used in investment in fixed assets, payment of pre production expense, loan and financial charges. There is an increasing trend in the net cash in the business.

Annexure-XVI

DreamzZ In Desert
Loan Repayment schedule
Years 1 2 3 4 5 6 7 8 9 10 Opening Balance 24,307 23,109 21,733 20,149 18,329 16,235 13,827 11,058 7,874 4,211 PMT 4,843 4,843 4,843 4,843 4,843 4,843 4,843 4,843 4,843 4,843 Interest 3,646 3,466 3,260 3,022 2,749 2,435 2,074 1,659 1,181 632 Principle 1,197 1,377 1,583 1,821 2,094 2,408 2,769 3,184 3,662 4,211 Closing Balance 23,109 21,733 20,149 18,329 16,235 13,827 11,058 7,874 4,211 (0)

We have taken long term loan form MCB Bank for 10 years and it will be paid back under this schedule. Loan is obtained on 15 % interest.

Annexure-XVII

DreamzZ In Desert
Internal Financial Rate of Return
Years 0 1 2 3 4 5 6 7 8 9 10 1 1,157 1 0,288 Capital Outlay 4 0,506 1,447 195 195 2 7,659 3 1,534 3 5,317 3 5,317 3 5,317 3 5,317 3 5,317 3 5,317 3 5,317 3 5,317 3,549 3,549 3,549 3,549 3,549 3,549 3,549 3,549 3,549 3,549 3,760 4,408 5,047 9,778 9,778 9,778 9,778 9,778 9,778 19,557 27,448 35,083 38,867 38,867 38,867 38,867 38,867 38,867 38,867 38,867 Operating Profits Depreciation Taxes Net Cash Return Net Cash Inflow/ (Outflow) (40,506) 26,001 34,888 38,671 38,867 38,867 28,579 38,867 38,867 38,867 50,024 NPV-70% (40,506) 15,294.87 12,071.82 7,871.24 4,653.52 2,737.37 1,183.99 947.19 557.17 327.75 5,139 NPV-80% (40,506) 14,445 10,768 6,631 3,702 2,057 840 635 353 196 (879)

IFRR

78.64%

The initial capital outlay is Rs. 40.506 million. Net cash inflow is shown in the seventh column of the table. The internal financial rate of return of the business is 78.64%

Annexure-XVIII

DreamzZ In Desert
Cash Break Even
(RS. In '000') Variable cost Fixed Cost Raw material Labor Factory overhead Depreciation expenses General expenses Selling expenses Interest expense Debt Payment Tax Total: 39062 21257 8467 3549 1503 344 3260 1377 5047 47529 36337

Sr. No. 1 2 3 4 5 6 7 8 9

Total Cost 39062 21257 8467 3549 1503 344 3260 1377 5047 83866

Sales: Break-Even Point

109500 36337 X 100%

109500

47529

59%

Cash breakeven point in third operating year will be 59%

Annexure-XIX

DreamzZ In Desert
Commercial Break Even
Sr. No. 1 2 3 4 5 6 7 8 Raw material Labor Factory overhead Depreciation expenses General expenses Selling expenses Interest expense Amortization of Pre-production Expenses Total: Variable cost 31250 6048 3549.29 1242.4 284 3645.99 515 37298 26804.68 RS. In ('000') Fixed Cost 17568 Total Cost 31250 17568 6048 3549.29 1242.4 284 3645.99 515 64102.68

Sales: Break-Even Point = =

87600 26804.68 X 80%

87600 42.63%

37298

Commercial Breakeven in point in the first operating year will be 42.63%.

Annexure-XX

DreamzZ In Desert
Weighted Average Cost of Capital
"000" Total Interest

Nature of Fund

Amount

Interest Rate %

After Tax Rate %

MCB Long Term Loan

24,307

15

2,005

Paid - Up Capital

16,204
40,511

30

30

4,861
6,867

Weighted Average Cost of Capital:

16.95%

Interest rate on long term loan is 15% and that of paid up capital is of 30%. The WACC is 16.95%.

Annexure - XXI

DreamzZ In Desert
Financial Plan
Description Total Fixed cost of the project Initial Permanent working capital Total cost of the project Long Term Debt Equity Participation Total Capital Required LCY 40,370 141
40,511

Rupees "000" FCY -

Total cost 40,370 141

40,511

24,307 16,205
40,511

24,307 16,205
40,511

Debt-to-Equity Ratio:

60

40

Our business has a capital structure of 60: 40. Total cost of project is RS. 40.511 Million. 60% of the cost is financed by long term loan and the 40% is financed by equity.