Assumptions

Followings are the assumptions taken:

I. Increase in the sale @ 25 %

II. Increase in the stock @ 20%

III. Purchase will increase @ 30%

IV. Operating expense will increase at the rate of 10% p.a

V. Limit of credit purchase will be 10% of the total purchase

VI. Limit of the credit sales will be 20% of the in first year and 15% for next 3 years

VII. Interest rate on the HBL loan is 9% p.a

VIII. Interest rate from the ABM AMRO bank @ 8.5% p.a

IX. Stock of the business will be increase at the rate of the 20% p.a

X. Depreciation will be charged at the 10% p.a on the assets

XI. Dividend paid to the stockholders @ of 5% in the first two years and rest of the
two years it will be double of the previous amount.

XII. Loan that we repayments to HBL @ of 15% and to ABM AMRO @10% p.a

XIII. Income tax will be 15% p.a

XIV. Drawing made in the 4th year of the 25,000 rupees

XV. In 3rd year amount of rupee 200,000 invested in the bank Standard charter
receiving 20% interest p.a