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Click_Pay_Business_Plan

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Entrepreneurship
Project
MBA - Click Pay (Payment Gateway)
Business Plan

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Page | 2
Entrepreneurship
Business Plan - Project
Submitted to: Prof. Ali Sheikh
Submitted by: Amir Almas {FA07 – MB – 001...

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Page | 3
Acknowledgement Establishing a new business is an exciting adventure
since it gives me the complete responsibilit...

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Click_Pay_Business_Plan

The Click Pay Business Plan was a part of entrepreneurship course study in MBA. My plan was selected as the best plan for the year and it was later submitted to SMEDA (Small and Medium Enterprise Development Authority) for further checking and viability study.

This business plan provides details about establishing a payment gateway company in Pakistan. It includes details of financial planning with 3 years projected financial statements.

The Click Pay Business Plan was a part of entrepreneurship course study in MBA. My plan was selected as the best plan for the year and it was later submitted to SMEDA (Small and Medium Enterprise Development Authority) for further checking and viability study.

This business plan provides details about establishing a payment gateway company in Pakistan. It includes details of financial planning with 3 years projected financial statements.

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Click_Pay_Business_Plan

  1. 1. Entrepreneurship Project MBA - Click Pay (Payment Gateway) Business Plan
  2. 2. Page | 2 Entrepreneurship Business Plan - Project Submitted to: Prof. Ali Sheikh Submitted by: Amir Almas {FA07 – MB – 0014}
  3. 3. Page | 3 Acknowledgement Establishing a new business is an exciting adventure since it gives me the complete responsibility and freedom to come up with an idea, which is unique, fresh and also workable i.e. practical. I have made a sincere effort in coming up with a business plan which I think is interesting and suitable for the Pakistan market of today. E - Commerce industry is a cash cow since people of Pakistan are getting aware of the e-commerce and they need convenience in every field of life. This has prompted me to come up with the idea of payment gateway without which e-commerce cannot flourish. This project will help in understanding the details about the business in grave depth. So here is a brave attempt to bring out something new and which I think is interesting and fun!!! I would like to thank my teacher Prof. Ali Sheikh, who has provided me an opportunity to work on this project and to enhance my skills as entrepreneur and for his guidelines which he provided me to complete this project. I also would like to thank all those who have helped me in any sense to complete this project. Project Introduction The business plan is the part of the subject study of Entrepreneurship for MBA course. This business plan includes payment gateway introduction and all details about the technical workings. I have tried to come up with the comprehensive plans with analysis of every single corner of business building. This business plan will give the reader details about starting a new business of Payment Gateway in Pakistan. I have established the company with name of CLICK PAY (Pvt.) Ltd.
  4. 4. Page | 4 Click Pay Empowering E – Commerce November 27th , 2009 Confidential Information
  5. 5. Page | 5 Confidentiality Statement This confidential Business Plan is being furnished by Click Pay (Pvt.) Ltd. Business Plan is not to be reproduced, distributed or used, in whole or in part, for any other purpose or made available to anyone not directly involved with the decision to invest in the Company. By accepting this Business Plan, the recipient understands that it is confidential information. It has been prepared for information purposes only and delivered with the express understanding that the recipient will use it only for the purpose set, and not in any way that is to the competitive advantage of the recipient or affiliates of the recipient. The Recipient agrees to hold in confidence and not possess or use (except to evaluate within the Pakistan) or disclose any of the proprietary information contained herein
  6. 6. Page | 6 Table of Content Executive Summary………………………………………………………..7 Industry Analysis……………………………………………………………10 Description of Venture………………………………………………….12 Marketing Plan……………………………………………………………….16 Management…………………………………………………………………..19 Financial Plan…………………………………………………………………20 Statements
  7. 7. Page | 7 Executive Summary Business Description Electronic delivery of product / services and Government services, are gaining popularity due to reach and affordability. A Payment Gateway is an infrastructural component to ensure that such transactions occur without any hitches and in total security over electronic networks. Click Pay is a payment gateway company focusing on online transactions infrastructure in Pakistan and it will provide services to small and medium-size enterprises ("SMEs") and large business, government and financial institutions. Our core services will be to provide a platform to all kind of business operating in Pakistan to expand their product / services market by offering online purchasing to their customers and consumers. Opportunity International economy is being increasingly “Electronized”, with more and more transactions occurring online and electronic payments increasing significantly to the extent that they are surpassing paper- based payment instruments. In additions, governments worldwide are targeting electronic delivery of public services and banking activities. The payment gateway is the only solution to make this happen in Pakistan. The payment gateway is the access point for all online transactions. At this point there is no payment gateway offering services in Pakistan. Internet users are increasing day-by-day and credit card is now very common also. The rapid growth in these sectors has shown the great opportunity for this business, which is also very important for economical growth. Businesses are in need for the infrastructure to offer their product and services online to gain their customer confidence. Strategy We intend to become a premier payment gateway services provider for the efficient online transaction system for merchants and management of network. Our company strategy will be carried out as follows: Building Infrastructure and development of shopping Software: We will develop our infrastructure of payment gateway and finalization of contracts with all financial institutions available in Pakistan. We will also develop our own shopping cart software in-house. Launch of Virtual Shopping Mall: After achieving our desired objectives of becoming premier payment gateway service provider in Pakistan, we will launch a Virtual Shopping Mall on internet providing consumer with one stop online shopping experience online without leaving your seat at home or office.
  8. 8. Page | 8 Target Customer The Click Pay will provide services to government, small, medium and large businesses, retail and departmental stores. Click Pay Payment Gateway will emphasis on the Business segment, which is very huge segment & other segment will be government. Product / Services Payment Gateway Services: Our core services on which main revenue streams will be depended is payment gateway services to our target market. We will offer website construction and consultation to merchants to offer their product / service to their consumers and network support services. Shopping Cart Software: Shopping cart is the essential component for merchants to be integrated in their website for order processing and database maintenance. This software also provides billing processing and managing accounts. Website Development Services: we will also provide website development and networking services to our clients Value Propositions Our value proposition is our ability to o Add simplicity and efficiency to the management of online transaction processes o Significantly cut merchants operational and technology costs o Enhance merchants’ customer acquisition and retention effort o Secure network systems for online transactions o Play a key role in each step of the application delivery process Financial Summary Proposed Capital: We require PKR. 5 million in capital investment. Uses of Investment: We are seeking investment capital in order to: o Setup of strong infrastructure with latest technology available in market o To attract experienced marketing and technical staff from financial institutions o General working capital
  9. 9. Page | 9 Revenue Streams: Our revenues will be coming from following resources: Setup Fee, Annual Fee, Shopping Cart Software and Website development
  10. 10. Page | 10 Industry Analysis Future Outlook and Trends The billions of online Internet users worldwide are creating huge opportunities for the development of e-commerce. The financial crisis has focused global attention on new infrastructure developments and facilitated a unique opportunity to shift the broadband emphasis from a high-speed Internet service to a national infrastructure for the digital economy that will underpin a range of positive social and economic developments. While the economic slowdown is curbing e-commerce growth somewhat in most markets, there is evidence so far that the online retail market has remained steady due mostly to the lower prices and convenience offered via online shopping. However, to facilitate increasing volumes, security and efficiency are essential and so is the required infrastructure. The overall volume of e-commerce is more than $ 4 billion annually. Doing business on internet is not very costly investment. It is estimated that in near future, almost 25% of the traditional business will be converted into internet business. E – Commerce is an IT trend developing fast in the business world. Pakistan still needs the infrastructure to avail e – commerce opportunities. There is no awareness in entrepreneurs of Pakistan about the benefits of e – commerce which needs to be communicated with the passage of time by making them aware of the fact that business on the internet. The most growth can be seen in the B2B and B2G markets for payment gateway business. Analysis of Competitions As far as competition is concern, there is no competitor in market right now but with the growth and awareness competitors are expected within a year. As pioneers in the industry we can better maintain our values and leading position with our efficient services. Market Segments Our market is divided into three segments: The biggest segment is Businesses who are providing products and services to either consumers or corporate sector. The second segment is Government, which is also a bigger segment which can also be very lucrative for our business. The third segment is retail and departmental stores (local and foreign both)
  11. 11. Page | 11 Industry Forecast Pakistan is still far behind the west in terms of growth in e – commerce but this was just because of lack of infrastructure available. Day-by-day, internet users are increasing which is very good sign for our business. According to Google there are 11% of total population are internet users and which are increasing with very high speed. The strength of internet users is 18.5 million in Pakistan which is more than any other developing country. Plastic Money business is definitely going big time here in Pakistan. In a country where few years back people have hardly heard the word plastic money or credit card, more than 7000 merchants are accepting above 140,000 cards. It has been estimated that there are likely to be around half million potential card users in the near future. This in turn reflects prospects in Pakistan market in accommodating numerous credit card competitors operating on the circuit, ensuring healthy and competitive card business deals. Perhaps, it is the most important time in the history of Pakistan as the parameters of its infrastructure are coming into existence. There is an immense need of reliable wide area connectivity and this market is so huge and lucrative that it can accommodate many more industry giants. The State Bank of Pakistan (SBP) has recently put a crack on the barriers when it approved the merchant ID accounts to facilitate online transactions. Description of Venture Product and Services Our offerings are available in 3 forms: Payment Gateway Services: Our core services on which main revenues stream will be depended is payment gateway services to target market. We will offer website construction and consultation to merchants to offer their product / service to their consumers and network support services. All online transactions must be through the Click Pay payment gateway to be processed. We will serve as bridge between the merchant’s website and financial institution that processes the transaction. Click Pay payment gateway will authenticate and route payment details in an extremely secure environment between parties and related banks. We will use “encrypted” channel which securely passes transaction
  12. 12. Page | 12 details from the buyer’s personal computer (PC) to bank for authorization and approval. On gaining approval we will send bank information to merchant thereby completing the ORDER and providing verification. List of benefits which we will provided to our clients: o 24 x 7 x 365 convenience o Real time authorization of credit / debit cards o Rapid, efficient transaction processing o Multiple payment options o Secure flow of transaction details among buyers, sellers and financial institutions o Flexible, powerful real-time reports generation o Multi-currency settlements, if the need be o Facility for customer refund o Merchants can get rid of large databases, extensive processing and complex software o CA (Certifying Authority NIFT with VeriSign Certificate) authenticated secure servers o Collection of bulk data in a cost-efficient manner, with the additional benefit of being checked for card validity o Access to card “hot-list” to filter out fraudulent deals o Ability to provide value-added services to merchants, acquiring and issuing banks o Provision for multiple host interfaces o Comprehensive, simple administrative control o Stringent security measures to gain customer and merchant trust Click Pay’s offerings are tailored for customers, merchants and banks. Click Pay aims at creating payment solutions so as to develop an integrated multiple platforms, which enable seamless payments via wireless, mobile and physical mode. The Click Pay online payment system resides on our secure servers, with the following capabilities: o Establish merchant accounts (via partnerships with banks)
  13. 13. Page | 13 o Secure payment processing o Virtual terminals for offline orders o Virtual wallets for micro payments and, o Multi-currency and multi-language support Whenever a customer will buy something from a virtual store, the Click Pay will come in the picture for the following functions: o Authorizing – Verifying the buyer’s credit/debit card details o Clearing – Transferring the transaction to merchant’s bank o Reporting – Recording all transactions Steps Involved in a Transaction Step 1 – Consumer visits a shopping website and selects the goods or services and clicks on the “Buy” button. A message is sent to the website regarding the consumer’s desire to buy and make payment. Step 2 - The Web store’s server, after receiving the message from the buyer, adds its digital certificate to identify the mall. This message is now called a “Digital Order” and also includes the consumer’s IP address and transaction amount. The Digital Order is now sent to the Payment Gateway over a secure network. Security is ensured by data encryption. Step 3 - Based on the Digital Certificate, the Payment Gateway authenticates the web store. Step 4 - The Payment Gateway offers various payment options on a screen to the buyer. Step 5 - Buyer chooses the desired payment option, which is transmitted via the secure link to the Payment Gateway. Step 6 - The Payment Gateway sends the payment details to the acquiring bank (in case of card transactions) or seller’s bank (as termed for other instruments). Step 7 - The acquiring bank sends the information to the buyer’s issuing bank (in case of card transactions) or buyer’s bank (as termed for other instruments) over a secure link. Step 8 - Based on the credit limit and the payment instrument’s validity, the issuing bank either accepts or rejects the transaction. The confirmation/rejection message is transmitted to the Payment Gateway through the acquiring bank. Step 9 - The Payment Gateway then transmits digital receipts to the shopping site as well as the buyer. Step 10 – The web store can ship the goods/services to the buyer.
  14. 14. Page | 14 Apart from the buyer and seller, the following are broadly involved: o Product/service manufacturers o Banks – acquiring and issuing o Payment Gateway infrastructure providers o Providers of the software involved o Hardware and networking vendors o Maintenance personnel o Delivery infrastructure o Internet Service Providers o The Government Shopping Cart Software: Shopping cart is the essential component for merchants to be integrated in their website for order processing and database maintenance. This software also provides billing processing and managing accounts. This software will be developed by in-house team. Click Pay’s E-shop shopping cart software is designed to be operated in multi-vendor mode (though it has the ability to operate in single- vendor mode as well). E-shop allows multiple product providers (vendors) to share a single store for selling their products. Each provider manages his own products, orders, taxes, etc and is able to set their own shipping rates for pre-defined shipping methods independently of other providers. However the store has a joint catalog and a common checkout point, so the customer needs to place only one order. Customers see it like a single shop with different products, and they can purchase products from different providers at a time, and will get a notification from each provider they've bought products from. Respectively, each provider will get orders for his products only. In summary E-shop features are as follows: o Unlimited number of isolated provider/seller accounts o Sellers/providers can edit only products belonging to them o Different providers/sellers can set their own shipping rates for pre-defined shipping methods o Admin account is separated from provider/seller accounts o Independent tax settings for providers/sellers
  15. 15. Page | 15 E-shop solution is ideal for: o Online store selling products from multiple suppliers o Web-supermarket with several departments o Online distributor/wholesaler o Internet mall with joint catalog Website Development Services: We will also provide website development and networking services to our clients. Our design department can give a hand on working out representative, decorative and usability issues. We will create custom site design from a scratch for our clients or integrate one of ecommerce solutions into already existing site design. All our websites are designed from a "blank canvas", so site is guaranteed to be unique and created just the way you want it. We will offer a superb service and are always available for any alterations or tweaks website after completion, carrying out any changes even months after completing your website. Marketing Plan Pricing The Company is aiming to skim the market by its aggressive pricing strategy. The following prices are involved: o One time Setup Fee Rs. 70,000 (Purchase, Installation & patch up of E-shop software and configuration and integration of payment gateway with merchant’s website) o Annual Fee Rs. 35,000 (Payment Gateway Charges) o Transaction Commission 0.50% o Website Design and Implementation (Depends on the requirement) Sales & Marketing We view sales and marketing as a critical component to our success. Sales Strategy: Our Company’s business strategy is to enter into a focused market where it can offer a higher standard of services to its specialized clients. This will allow us to charge higher fees to our clients for these differentiated services. Click Pay intends to develop sales by establishing close contact with potential clients. We will begin by offering a free consultation in terms of overall cost and awareness to their customers.
  16. 16. Page | 16 Sales Forecast: Sales are based on the various contracts we anticipate in the two market segments (B2B & B2G). Revenues consist of a onetime setup cost and annual fee charged to our clients and transaction cost depends upon the volume of transactions completed. Sales are expected to be varying on month to month. Sales Forecast 2010 2011 2012 Onetime Fee 3,010,000 3,360,000 4,200,000 Annual Fee 1,505,000 1,505,000 3,185,000 Annual Fee (Ex) 1,680,000 4,200,000 Transactions 1,700,000 4,500,000 6,000,000 Total 6,215,000 11,045,000 17,585,000
  17. 17. Page | 17 Marketing Strategy We will undertake a marketing campaign designed to generate brand awareness and promote our reputation among our target customer base. The following are the marketing initiatives: Tactics: o Launched new Click Pay website featuring payment gateway information o Developed payment gateway data sheets and brochures for each target segment o Exhibited at leading industry conferences, such as ITCN and IDEAS o Disseminated controlled press releases and other media relations activities Prospective Marketing activities include: o Targeted advertising in industry trade magazines o Targeted mailing and seminars with partners like merchants, banks and credit card issuers o Internet advertising with popular search engines
  18. 18. Page | 18 Management Our Company’s structure will be as follows:
  19. 19. Page | 19 Financial Plan Our financial plan anticipates two year of negative profits as we gain sales volume. We have enough investment to cover these losses and have an additional credit line available if sales do not match the predictions. We have worked out three years of cash flows which shows that we need capital investment of PKR. 5 Million, division of capital investment is given below: Paid up Capital Rs. 3,000,000 Interest free Loan from Directors Rs. 2,000,000 We will register our company as Private Limited guaranteed by share holding among four Directors and loan will also provided by same Directors which will paid off in 3 years. Major expenses are shown in three areas i.e. IT infrastructure setup, human resource and promotion and advertising. To attain our required forecasting we need approx 40 merchant accounts per year which is our revenue engine. Financial Statements are attached:
  20. 20. Click Pay Page 1 Empowering E- commerce Inputs Revenue Model Merchant Account Fee Onetime Fee 70,000 Annual Fee 35,000 Transactions Rate Avg. Amount Per day Per month Per Trans Per month 0.50% 5,000 50 1,500 25 37,500 Sales Summary 2010 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Total Merchants Accounts 1 3 3 3 3 4 4 4 5 5 5 40 Transaction 500 1500 3,000 4,000 5,000 6,000 8,000 10,000 10,000 10,000 10,000 68,000 2011 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Total Merchants Accounts 3 3 3 3 3 3 4 4 4 4 4 4 42 Merchants Accounts (Ex) 40 Transaction 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 180,000 2012 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Total Merchants Accounts 4 4 4 4 4 4 4 4 4 4 4 4 48 Merchants Accounts (Ex) 82 Transaction 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 240,000 Summary Years Total Total Merchant Accounts 3 130 Total Transactions 3 240,000
  21. 21. Staff Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 CEO 1 1 1 1 1 1 1 1 1 1 1 1 Marketing Manager 1 1 1 1 1 1 1 1 1 1 1 1 Manager IT 1 1 1 1 1 1 1 1 1 1 1 1 Manager Accounts, HR & Ad 1 1 1 1 1 1 1 1 1 1 1 1 Marketing Exe 1 1 1 1 1 1 1 1 1 1 1 1 Sales Support Exe 1 1 1 1 1 1 1 1 1 1 1 1 Sales Support Asst. 1 1 1 1 1 1 1 1 1 1 1 1 Network Admin 1 1 1 1 1 1 1 1 1 1 1 1 Software Developer 1 1 1 1 1 1 1 1 1 1 1 1 Web Developer 1 1 1 1 1 1 1 1 1 1 1 1 Customer Support Asst. 1 1 1 1 1 1 1 1 1 1 1 1 Accountant 1 1 1 1 1 1 1 1 1 1 1 1 Admin & HR Officer 1 1 1 1 1 1 1 1 1 1 1 1 Legal & Finance Officer 1 1 1 1 1 1 1 1 1 1 1 1 Receptionist 1 1 1 1 1 1 1 1 1 1 1 1 Outdoor Clerk 1 1 1 1 1 1 1 1 1 1 1 1 Office Boys 1 1 1 1 1 1 1 1 1 1 1 1 Total Staff 17 17 17 17 17 17 17 17 17 17 17 17
  22. 22. Click Pay Page 2 Empowering E- commerce Staff 2010 Salary Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 CEO 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 Marketing Manager 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 Manager IT 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 Manager Accounts, HR & Ad 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 Marketing Exe 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 Sales Support Exe 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 Sales Support Asst. 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 Network Admin 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 Software Developer 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 Web Developer 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 Customer Support Asst. 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 Accountant 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 Admin & HR Officer 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 Legal & Finance Officer 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 Receptionist 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 Outdoor Clerk 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 Office Boys 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 Total 283,000 283,000 283,000 283,000 283,000 283,000 283,000 283,000 283,000 283,000 283,000 283,000 Staff 2011 325,450 325,450 325,450 325,450 325,450 325,450 325,450 325,450 325,450 325,450 325,450 325,450 Staff 2012 374,268 374,268 374,268 374,268 374,268 374,268 374,268 374,268 374,268 374,268 374,268 374,268
  23. 23. Click Pay Page 3 Empowering E- commerce Expenses 2010 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Total CAPEX Security Deposites 108,000 108,000 Furniture and Fixtures 250,000 250,000 Computers /Notebook 300,000 300,000 Office Equipment 250,000 250,000 Office Networking Equipment 70,000 70,000 Payment Gateway Setup - Firewall 60,000 60,000 Gateway Server 125,000 125,000 DB Server 125,000 125,000 Tape Drive for Backup 80,000 80,000 Server Rack 25,000 25,000 Softwares (Gateway & DB) 150,000 150,000 Total 1,543,000 - - - - - - - - - - - 1,543,000 OPEX Rent Office 18,000 18,000 18,000 18,000 18,000 18,000 18,000 18,000 18,000 18,000 18,000 18,000 216,000 Non Interest Loan Settlement 55,556 55,556 55,556 55,556 55,556 55,556 55,556 55,556 55,556 55,556 55,556 55,556 666,672 Internet Exp (CIR Cybernet) 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 300,000 Repair & Maintenance (Networks) 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 60,000 Conveyance & Petrol (Employees) 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 180,000 Postage & Printing 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24,000 Entertainment 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24,000 Electricity 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 180,000 Telephone & Fax 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 72,000 Supplies - Office 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 120,000 Mobile (Employees) 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 120,000 Salaries 283,000 283,000 283,000 283,000 283,000 283,000 283,000 283,000 283,000 283,000 283,000 283,000 3,396,000 Subscriptions 500 500 500 500 500 500 500 500 500 500 500 500 6,000 Bank Charges 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 180,000 Water Exp 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000 Misc 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000 Insurances 30,000 - - - - - - - - - - 30,000 Legal & Tax Consultant 30,000 - - - - - - - - - - 30,000 Company Registration 50,000 - - - - - - - - - - 50,000 Unexpected Exp - - - - - - - - - 20,000 20,000 Advertising & Promotions 1,000,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 3,200,000 1,574,056 664,056 664,056 664,056 664,056 664,056 664,056 664,056 664,056 664,056 664,056 684,056 8,898,672 Total 3,117,056 664,056 664,056 664,056 664,056 664,056 664,056 664,056 664,056 664,056 664,056 684,056 10,441,672
  24. 24. Expenses 2011 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Total CAPEX Security Deposites - Furniture and Fixtures - Computers /Notebook - Office Equipment - Office Networking Equipment - Payment Gateway Setup Firewall - Gateway Server - DB Server - Tape Drive for Backup - Server Rack - Softwares (Gateway & DB) - Total - - - - - - - - - - - - - OPEX Rent Office 19,080 19,080 19,080 19,080 19,080 19,080 19,080 19,080 19,080 19,080 19,080 19,080 228,960 Non Interest Loan Settlement 55,556 55,556 55,556 55,556 55,556 55,556 55,556 55,556 55,555 55,555 55,555 55,555 666,668 Internet Exp (CIR Cybernet) 26,500 26,500 26,500 26,500 26,500 26,500 26,500 26,500 26,500 26,500 26,500 26,500 318,000 Repair & Maintenance (Networks) 5,300 5,300 5,300 5,300 5,300 5,300 5,300 5,300 5,300 5,300 5,300 5,300 63,600 Conveyance & Petrol (Employees) 15,900 15,900 15,900 15,900 15,900 15,900 15,900 15,900 15,900 15,900 15,900 15,900 190,800 Postage & Printing 2,120 2,120 2,120 2,120 2,120 2,120 2,120 2,120 2,120 2,120 2,120 2,120 25,440 Entertainment 2,120 2,120 2,120 2,120 2,120 2,120 2,120 2,120 2,120 2,120 2,120 2,120 25,440 Electricity 15,900 15,900 15,900 15,900 15,900 15,900 15,900 15,900 15,900 15,900 15,900 15,900 190,800 Telephone & Fax 6,360 6,360 6,360 6,360 6,360 6,360 6,360 6,360 6,360 6,360 6,360 6,360 76,320 Supplies - Office 10,600 10,600 10,600 10,600 10,600 10,600 10,600 10,600 10,600 10,600 10,600 10,600 127,200 Mobile (Employees) 10,600 10,600 10,600 10,600 10,600 10,600 10,600 10,600 10,600 10,600 10,600 10,600 127,200 Salaries 325,450 325,450 325,450 325,450 325,450 325,450 325,450 325,450 325,450 325,450 325,450 325,450 3,905,400 Subscriptions 530 530 530 530 530 530 530 530 530 530 530 530 6,360 Bank Charges 15,900 15,900 15,900 15,900 15,900 15,900 15,900 15,900 15,900 15,900 15,900 15,900 190,800 Water Exp 1,060 1,060 1,060 1,060 1,060 1,060 1,060 1,060 1,060 1,060 1,060 1,060 12,720 Misc 1,060 1,060 1,060 1,060 1,060 1,060 1,060 1,060 1,060 1,060 1,060 1,060 12,720 Insurances 31,800 - - - - - - - - - - 31,800 Legal & Tax Consultant 31,800 - - - - - - - - - 31,800 Company Registration - - - - - - - - - - - Unexpected Exp - - - - - - - - - - 20,000 20,000 Advertising & Promotions 1,060,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 3,260,000 1,637,636 714,036 714,036 714,036 714,036 714,036 714,036 714,036 714,035 714,035 714,035 734,035 9,512,028 Total 1,637,636 714,036 714,036 714,036 714,036 714,036 714,036 714,036 714,035 714,035 714,035 734,035 9,512,028
  25. 25. Expenses 2012 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Total Increase CAPEX Security Deposites - Furniture and Fixtures - Computers /Notebook - Office Equipment 200,000 200,000 Office Networking Equipment - Payment Gateway Setup Firewall 80,000 80,000 Gateway Server 125,000 125,000 DB Server - Tape Drive for Backup 90,000 90,000 Server Rack 30,000 30,000 Softwares (Gateway & DB) - Total 525,000 - - - - - - - - - - - 525,000 OPEX Rent Office 20,225 20,225 20,225 20,225 20,225 20,225 20,225 20,225 20,225 20,225 20,225 20,225 242,698 Non Interest Loan Settlement 55,555 55,555 55,555 55,555 55,555 55,555 55,555 55,555 55,555 55,555 55,555 55,555 666,660 Internet Exp (CIR Cybernet) 28,090 28,090 28,090 28,090 28,090 28,090 28,090 28,090 28,090 28,090 28,090 28,090 337,080 Repair & Maintenance (Networks) 5,618 5,618 5,618 5,618 5,618 5,618 5,618 5,618 5,618 5,618 5,618 5,618 67,416 Conveyance & Petrol (Employees) 16,854 16,854 16,854 16,854 16,854 16,854 16,854 16,854 16,854 16,854 16,854 16,854 202,248 Postage & Printing 2,247 2,247 2,247 2,247 2,247 2,247 2,247 2,247 2,247 2,247 2,247 2,247 26,966 Entertainment 2,247 2,247 2,247 2,247 2,247 2,247 2,247 2,247 2,247 2,247 2,247 2,247 26,966 Electricity 16,854 16,854 16,854 16,854 16,854 16,854 16,854 16,854 16,854 16,854 16,854 16,854 202,248 Telephone & Fax 6,742 6,742 6,742 6,742 6,742 6,742 6,742 6,742 6,742 6,742 6,742 6,742 80,899 Supplies - Office 11,236 11,236 11,236 11,236 11,236 11,236 11,236 11,236 11,236 11,236 11,236 11,236 134,832 Mobile (Employees) 11,236 11,236 11,236 11,236 11,236 11,236 11,236 11,236 11,236 11,236 11,236 11,236 134,832 Salaries 374,268 374,268 374,268 374,268 374,268 374,268 374,268 374,268 374,268 374,268 374,268 374,268 4,491,210 Subscriptions 562 562 562 562 562 562 562 562 562 562 562 562 6,742 Bank Charges 16,854 16,854 16,854 16,854 16,854 16,854 16,854 16,854 16,854 16,854 16,854 16,854 202,248 Water Exp 1,124 1,124 1,124 1,124 1,124 1,124 1,124 1,124 1,124 1,124 1,124 1,124 13,483 Misc 1,124 1,124 1,124 1,124 1,124 1,124 1,124 1,124 1,124 1,124 1,124 1,124 13,483 Insurances 33,708 - - - - - - - - - - 33,708 Legal & Tax Consultant 33,708 - - - - - - - - - 33,708 Company Registration - - - - - - - - - - - - Unexpected Exp - - - - - - - - - - 20,000 20,000 Advertising & Promotions 1,123,600 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 3,323,600 1,761,850 770,834 770,834 770,834 770,834 770,834 770,834 770,834 770,834 770,834 770,834 790,834 10,261,028 Total 2,286,850 770,834 770,834 770,834 770,834 770,834 770,834 770,834 770,834 770,834 770,834 790,834 10,786,028
  26. 26. Income Statement 2010 2011 2012 Expenses Rent 216,000 228,960 242,698 Payroll 3,396,000 3,905,400 4,491,210 Internet & Utilities 672,000 712,320 755,059 Marketing & Sales 3,200,000 3,260,000 3,323,600 Insurances & Legal 60,000 63,600 67,416 Other Operating Exp 688,000 675,080 714,385 Total 8,232,000 8,845,360 9,594,368 Balance Sheet Assets Furniture & Fixture 275,000 30,000 Office Equipment 320,000 200,000 Computers / Accessories 840,000 295,000 Total 1,435,000 - 525,000 Liabilities Non Interest Loan 2,000,000 1,333,328 666,660 Loan Payment 666,672 666,668 666,660 Balance Year End 1,333,328 666,660 -
  27. 27. Click Pay Page 4 Empowering E- commerce Revenue 2010 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Total OneTime Fee - 70,000 210,000 210,000 210,000 210,000 280,000 280,000 280,000 350,000 350,000 350,000 2,800,000 Annual Fee - 35,000 105,000 105,000 105,000 105,000 140,000 140,000 140,000 175,000 175,000 175,000 1,400,000 Transactions - 12,500 37,500 75,000 100,000 125,000 150,000 200,000 250,000 250,000 250,000 250,000 1,700,000 - 117,500 352,500 390,000 415,000 440,000 570,000 620,000 670,000 775,000 775,000 775,000 5,900,000 2011 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Total One Time Fee 210,000 210,000 210,000 210,000 210,000 210,000 280,000 280,000 280,000 280,000 280,000 280,000 2,940,000 Annual Fee (Ex) 1,400,000 1,400,000 Annual Fee 105,000 105,000 105,000 105,000 105,000 105,000 140,000 140,000 140,000 140,000 140,000 140,000 1,470,000 Transactions 375,000 375,000 375,000 375,000 375,000 375,000 375,000 375,000 375,000 375,000 375,000 375,000 4,500,000 2,090,000 690,000 690,000 690,000 690,000 690,000 795,000 795,000 795,000 795,000 795,000 795,000 10,310,000 2012 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Total One Time Fee 280,000 280,000 280,000 280,000 280,000 280,000 280,000 280,000 280,000 280,000 280,000 280,000 3,360,000 Annual Fee (Ex) 2,870,000 2,870,000 Annual Fee 280,000 280,000 280,000 280,000 280,000 280,000 280,000 280,000 280,000 280,000 280,000 280,000 3,360,000 Transactions 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 6,000,000 3,930,000 1,060,000 1,060,000 1,060,000 1,060,000 1,060,000 1,060,000 1,060,000 1,060,000 1,060,000 1,060,000 1,060,000 15,590,000 Sales Forecast 2010 2011 2012 OneTime Fee 2,800,000 2,940,000 3,360,000 Annual Fee 1,400,000 1,400,000 2,870,000 Annual Fee (Ex) 1,470,000 3,360,000 Transactions 1,700,000 4,500,000 6,000,000 Total Sales 5,900,000 10,310,000 15,590,000
  28. 28. - 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 2010 2011 2012 Ontime fee Annual Fee Annual Fee (Ex) Transactions - 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 18,000,000 2010 2011 2012 Total Sales Total Sales
  29. 29. Click Pay Page 5 Empowering E- commerce Cashflow 2010 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Total Cash Balance 5,000,000 1,882,944 1,336,388 1,024,832 750,776 501,720 277,664 183,608 139,552 145,496 256,440 367,384 Inflow (Income) - 117,500 352,500 390,000 415,000 440,000 570,000 620,000 670,000 775,000 775,000 775,000 5,900,000 Expense (Outflow) 3,117,056 664,056 664,056 664,056 664,056 664,056 664,056 664,056 664,056 664,056 664,056 684,056 10,441,672 Balance 1,882,944 1,336,388 1,024,832 750,776 501,720 277,664 183,608 139,552 145,496 256,440 367,384 458,328 (4,541,672) Cashflow 2011 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Total Cash Balance 458,328 910,692 886,656 862,620 838,584 814,548 790,512 871,476 952,440 1,033,405 1,114,370 1,195,335 Inflow (Income) 2,090,000 690,000 690,000 690,000 690,000 690,000 795,000 795,000 795,000 795,000 795,000 795,000 10,310,000 Expense (Outflow) 1,637,636 714,036 714,036 714,036 714,036 714,036 714,036 714,036 714,035 714,035 714,035 734,035 9,512,028 Balance 910,692 886,656 862,620 838,584 814,548 790,512 871,476 952,440 1,033,405 1,114,370 1,195,335 1,256,300 797,972 Cashflow 2012 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Total Cash Balance 1,256,300 2,899,450 3,188,615 3,477,781 3,766,947 4,056,113 4,345,278 4,634,444 4,923,610 5,212,775 5,501,941 5,791,107 Inflow (Income) 3,930,000 1,060,000 1,060,000 1,060,000 1,060,000 1,060,000 1,060,000 1,060,000 1,060,000 1,060,000 1,060,000 1,060,000 15,590,000 Expense (Outflow) 2,286,850 770,834 770,834 770,834 770,834 770,834 770,834 770,834 770,834 770,834 770,834 790,834 10,786,028 Balance 2,899,450 3,188,615 3,477,781 3,766,947 4,056,113 4,345,278 4,634,444 4,923,610 5,212,775 5,501,941 5,791,107 6,060,272 4,803,972 - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2,000,000 Cashflow 2010 - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Cashflow 2011 - 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 Cashflow 2012
  30. 30. Click Pay Page 6 Empowering E- commerce Depreciation Value Date Addition Total Depreciation Written Down Value Rate Depreciation As at of In the Value As at as at 30-Dec-2010 % Period 1-Jan-10 Purchase Year 30-Dec-10 2011 - 2012 P.A. 2010 1 Furniture & Fixture 275,000 1-Jan-10 41,250 233,750 15% 1 Year 2 Office Equipment 320,000 1-Jan-10 64,000 256,000 20% 1 Year 3 Computers / Accessories 840,000 1-Jan-10 210,000 630,000 25% 1 Year Total 1,435,000 315,250 1,119,750 2011 1 Furniture & Fixture 233,750 1-Jan-10 35,063 198,688 15% 1 Year 2 Office Equipment 256,000 1-Jan-10 51,200 204,800 20% 1 Year 3 Computers / Accessories 630,000 1-Jan-10 157,500 472,500 25% 1 Year Total 1,119,750 243,763 875,988 2012 1 Furniture & Fixture 198,688 1-Jan-12 30,000 228,688 34,303 194,384 15% 1 Year 2 Office Equipment 204,800 1-Jan-12 200,000 404,800 80,960 323,840 20% 1 Year 3 Computers / Accessories 472,500 1-Jan-12 295,000 767,500 191,875 575,625 25% 1 Year Total 875,988 525,000 1,400,988 307,138 1,093,849 S. No. Particulars
  31. 31. Click Pay Page 7 Empowering E- commerce Proforma Profit & Loss 2010 Ratio-2010 2011 Ratio-2011 2012 Ratio-2012 Revenues One Time Fee 2,800,000 2,940,000 3,360,000 Annual Fee (Ex) 1,400,000 2,870,000 Annual Fee 1,400,000 1,470,000 3,360,000 Transactions 1,700,000 4,500,000 6,000,000 Total Revenues 5,900,000 100% 10,310,000 100% 15,590,000 100% Cost of Sales Direct Cost of Sales 0 0 0 Other Cost of Sales 0 0 0 Total Cost of Sales 0 0 0 Gross Profit 5,900,000 10,310,000 15,590,000 Operating Expenses Rent 216,000 4% 228,960 2% 242,698 2% Payroll 3,396,000 58% 3,905,400 38% 4,491,210 29% Internet & Utilities 672,000 11% 712,320 7% 755,059 5% Marketing & Sales 3,200,000 54% 3,260,000 32% 3,323,600 21% Insurances & Legal 60,000 1% 63,600 1% 67,416 0% Other Operating Exp 688,000 12% 675,080 7% 714,385 5% Dep Exp 315,250 5% 243,763 2% 307,138 2% Total Expenses 8,547,250 145% 9,089,123 88% 9,901,506 64% Pretax Profit / Loss (2,647,250) -45% 1,220,878 12% 5,688,494 36% Taxable Income - - 4,262,122 27% Tax 35% - - 1,491,743 10% Net Profit / Loss (2,647,250) -45% (1,426,373) -14% 2,770,379 18% -5,000,000 0 5,000,000 10,000,000 15,000,000 20,000,000 Total Revenues Total Expenses Net Profit / Loss (3,000,000) (2,000,000) (1,000,000) 0 1,000,000 2,000,000 3,000,000 4,000,000 Net Profit / Loss Net Profit / Loss
  32. 32. Click Pay Page 8 Empowering E- commerce Proforma Balance Sheet 2010 2011 2012 Assets Current Assets Cash 458,328 1,256,300 6,060,272 Long Term Deposits 108,000 108,000 108,000 Total Current Assets 566,328 1,364,300 6,168,272 Fixed Assets Furniture & Fixture 233,750 198,688 194,384 Office Equipment 256,000 204,800 323,840 Computers / Accessories 630,000 472,500 575,625 Total Fixed Assets 1,119,750 875,988 1,093,849 Total Assets 1,686,078 2,240,288 7,262,122 Liabilities & Equity Long Term Liabilities Non Interest Loan (Directors) 1,333,328 666,660 0 Total Liabilities 1,333,328 666,660 0 Equity Paid Up Capital 3,000,000 3,000,000 3,000,000 Profit / Loss (2,647,250) (1,426,373) 4,262,122 Total Equity 352,750 1,573,628 7,262,122 Total Liabilities & Equity 1,686,078 2,240,288 7,262,122 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 2010 2011 2012 Assets Liabilities & Equity

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