a

ANDENTERPRISE
INNOVATION
ET3OO6
OFSCUBA
COMPUTER
AIDEDDESIGN
DEVICE
WARNING
DIVINGAIRPRESSURE

FinanceSection
By
L

YASHARKHATIBSHAHIDI

BSc.(Honours)ComputerAidedProductDesign
and BuiltEnvironment
Schoolof Engineering
Universityof Wolverhampton

Year:
ModuleLeader:
during:
InnovationandEnterpriseundertaken
CreditRating:
Modeof Aftendance:

2007n008
Mr.G.Hudson
2 2008
Semester

,IE

FullTime

Contents
Chapter

Page

1. Preface
1.1WhydoesOxycheckneedfinance

1
1-4

2. Background
2,1Typeof company
2.2 Ovarallbackground

4
4-5

3. Properties
3.1Year1
3.2Year2, 3, and4
3.3Year5

6-7
7-8
8-9
9-10

4. Ingurance
4,1Liabilitylrcuranca
4,2Propedylnsuranca
4,3Busineega3seteand equipmentInsunance
4.4TEdesmenlnsurance
4.5BuslnossInterruptionInsurance

10-11
11-12
12
12
12
12-13

5. Legalfees

13

6. ProductCosting
6.1Partcosting
8.2Cost of parF eachyeat

13
14-'t5
15

7. Employeo(Staff,L.bour)
7.'l Staff requirements
7.2Director33alary
7,3Employoerequirement
for yoar1
7.4Employeerquirement
for year2
7.5Employeeroquirement
for yeat3
7.6Employeercquirementfor year4
7.7Employeercquirementfo. year5

16-17
17-18
t8
t9
19
20
20
21

8. Utilitybills

21

9. Equipmentandtool
9.1Computer(Hardware
and Software)
9.2Officeequipments
9.3Tools

22
22-24
24-29
29-30

10. Advertisingcosts
10.1Initialadvertisingcost
10.2Advertisingcost for year1

31
3t
3t

t
t

t
l

t
I
L

'10.3Advertisingcostfor ygar2
10.4Advertisingcost for year3
'10.5Advertisingcost for year4
10.6Advertisingcostfor year5
10,7Summaryot sdvertisingcost

32
32
32
32
33

11.Distributioncost
11.1Paypalservicecharge
tl.2 Distributioncost in year.l
ll.3 Distributioncost in year2
'11,4Distrlbutioncost in year3
11.5Distributionco6tin year4
l'1.6Distributioncost in ysar5

33
33
34
35
35
35
35

12.Rotailof product
12.'lTolerancoin sales

36-37
37 -40

13,Taxesand buslnsssrateg
13.1VAT
13.2Buslne$ rates

40
40-41
42

14.Availabltypesof financosources
14.1Dircctofs financecont butlon
14,2BankLoane
'14.3Ovordraft
14.4Grants
14,5Venturecapital
14.6Businessangelflnanca

42
43
43
4lt
4
4
4

15.CashFldlyforecastand Break-Even
polntAnalysis

45-51

Appendix

52

Bibliography

53-54

f1. Preface
Financeis oneof themostviialpartof anycompanyandalmostheadof any
company.
Inorderforanycompany
to succed
andremaincompetent
in
marketit nesdsto considerfinancialissues,produc.ts
and services.lt takes
moneyto makemoney,andeverysmallbusiness
needsmoneyto getstarted,
to oprate,and to sxpandandgrow.
Fora newcompany
whichis calledOxycheckproducing
a brandnewproduct
intomarket(SCUBAair pressurs
warningsystem),it is vitalthatallof the
L

financialaspects
andissuesarcconsidered
andanticipated.

{.1 tlvhydoeOxycheckneedflnance?
It is important
to cloarlyidentiry
thepurposof lhefunds.Businese
financeis
generally
usedto acquireassetswhicharemployed
to helpthe business
achiveitspofit-making
objectives,
suchas:
.

To purchase
capitalitems(fixedassets)e.9.,plant,equipment,
landor
buildings,
motorvehicles;

To increase
holdings
of tradingstockandsupplies;

. To fundresearch
anddevlopment;
. To expanddistribution
or developnsfl markets.
Expenditures
or costsarecategorisedinlotwo groups':
.

Fixedcosts:ll includes
rent,insurance,
ofti@expense,
equipmenr,
etc.,whichdoesnotvaryas a resultof outputvolumeor salesrevenue.

1-

o{ine ro$c - htts:/ pvw.businssdictiomry.com/defrinon/vadabte-costhtml

. Variablecosts: Periodiccostthatvaries,moreor less,in stepwiththe

outputor thesalesrevenueof a firm.Theseincluderawmaterial,
energyusage,labour(wages),
utilitybills,distribution
costs,etc.
Differeritaspectsof expenditures
needto be consideredandassessedas
following:
.

Propertyand ptmises:Thissctionbesidesproperty
coslsincluoes
additional
costssuchas Eleclricity,
gas,watersupply,ventilation
etc.
Thisalgoincludes
anyfurtherproperty
development
whichneedsro be
o@lnedfor somerasonssuchas,productdevelopment,
accssibility
andsabty.

. Legalfeee: lt includessolicitorfees.
. Insurance:lt is veryimportant
andessential
for anycompany
lo insure
foranyareassuchas damage,
thefr,injuryor loss.Thepolicyprovides
thefirmwithfnancialsecurityandeaseof mind.Theseareasinclude
buildings,
employees,
machines
andetc.
. Thoemployees:People,
lvhoareinvolved
to produce,
assmble
and
packandalsostaffinvolvad
in officedepartment
suchas designing,
finance,accountant
andetc.Thisareaincludenumberof staff,
wage/salary,
andhoursrequired.
. Utilitybills: lt includes
peryear.
costof electricity
. Accountingfees:Coslof accounting
(Employing
br Oxycheck
an
accountant).
. Job expenses:Expenditures
shouldbetrackedforthosedirectlabour
andmaterialcoststo eachjob. In addition,overheadcostsand
jobsshouldbeconsidered
allocating
themto various
as applicable.

Thisprovides
profitperproductandincludes
accurate
totalcostof
manufacturing
perproduct,
theproduct,
thetotaltimeto manufacture
combined
withtotalemployee
wage.Thisis usedto makedecision
on
the Gtail costof the producl,with a sufficientprofit.Consequenfly
the
retailof produc{canbe obtainedfto previoussections.Totalincome
and profitcan beobtainedfor periodof 5 yeaB.
. itachinesandtools:Thisis additionat
costthatis required
to
manufacture
the productwiich includeshardwareandsoftwaresuch
as PCcomputersandsofh are licences.Oxycheckwill not
manuiacture
anypartsandthosepariswhichneedto be manufactured
willbe manufaclured
by outermanufac.turing
companies.
. RepalEandMaintenance:
SinceOxycheck
willmoveto new
induslrial
unitsin year2, therebretheunitwillrequirerepairsand
maintenance.
. Security:Fromyear2 onwardthecompany
willemploysomeone
for
scurity.
. Promotion(Advertleing)
costs:Thisis veryimportant
sectionwhich
assignsexpendituro
to introduce
thoproduc,t
in thBmarket.The
websitewillpromote
theproduciandcompany,
andalsobeusadfor
purposes
communication
betweensellersand@nsumers.
. Businessrentand rate:Business
ratecoveJs
allexoenditures
owed
to govemmentsuchas tax, VAT,etc andbusinessrenl is called
leasing.

Financial
management
mustbe accurate
andit is vitalfor anycompany
to be
ableto managetheirfnancialaspec-ts
in oder to besuccessful.
A business
failsbcauseof mainreasonsas describedas followino:
.

Running
outof fnance

Failureto providing
costsfor production,
salesandfailurelo
anticipating
natprofit(Notunderstanding
thecostof sales)

Failureto payingbackcreditors(Overbonowing).

Manynewbusinesswitlexhausttheintemalfinancialresources
whichare
usedduringthestart-upphase,andwilleventually
seekadditional
capitalto
growing.
contjnue
In managing
financeanycompanymuslprcparoitselffortheworstsitualon
whichoccuBin company's
fJturefinancissuesandbe abloto understand
the'\/vl|atlb'and addrss
them.

2. Backgrcund
2,1 Typeof company
Thebrandns,vcompany
Orycheckinitiallystartas a partnershipfirm. A
partnership
company
bothformallyandinformally
meansa situation
where
twoor morepeopleareworkingtogether
for a commonpurpose,
with
responsibility,
commitmsnt
andthointention
of makingmoney.

All partners
areliablebr partnership
debtsandprotitsandaredividedequay
betweeneachmember.

Beforemakinganydecisions
allthemembers
haveto cometo an agreement
on
alldecisions
andolans.
Someadvaniages
are;
. A companybasedon partnership
is ableto generate
morebudget
. Wholetheworkin company
is sharedandspreaded
almostequallywith
eachmembers
of thecompany
.

Lossasandprofitsof thecompany
aresharedwitheachmembers
of the
company

Somedisadvantages
are:
.

Thecompany
is limitedto thedecision
of a themembers
of thecompany.
ll meansallth6mombers
mustagreeon thedecision
whichcancause
conflict

Eachmemberof thecompany
areliableandresponsible
forth
@nsequences
oftheirdecisionin futurewhichcancauseproblamand
conflictamongst
members

Afterdiscussion
between
directors
of theOxycheck
it wasagreadthatthe
companyOxycheck
duringthe beginning
stagesis basedon partnership
business
dueto sharingresponsibilities
with3 members
of thecompany
(Marketing,
Design,Production,
andfinancedirectors).

Afterlhe companywas establishedsuccessfutly

it will moveon to the stagein
whichlhe businesscoulddevelopintoa soletraderor a limitedcompany.

2.2 Overallbackground
produces
plan.
Thefinancedepartment
an accurate
cashflowanda business
Fromtheplan,thellnancialaspectscanbeset.
All typeof costsandexpenditures
whichwillhaveeffectoncompany
willbe
researched
it willalsoincludeindividual
andproduced
costsandoverheads.
Orycheckis a brandnewfirmwitha brandnewproductandso doesnothavea
financialbackground
to helpto predictaccurately
therefore
financial
aspectswill
beestimated
suchas expenditures,
salesandetc.
Thecostsmightchangewhentheproductis actuallylaunched
dueto a number
of factorssuchas unforeseen
delaysandevents.Thesecostsarevariableand
changewhichareincluded
in cashflow.Otherexpenditures
suchas material
leave,overlime,
waste,employment
debtsandVAT.Thecashflowwillinclude
fixedcostssuchas heating,rent,machinery
andetc.

3. Properties
Properties
havean important
ff6ctonthecostof anyproducts
distribution.
Therearesomefactorsthatneedto be considered.
At thebeginning
the
properties
willhavea minimum
space,costandfacilities,
butin secondyear
willexpandandtryto addextraproperties
Oxycheck
whichspecifically
fulfil
the needsof a growingbusiness.
Eventually
oncetheOxycheck
reached
a
numberof salesit willconsider
establish
moreoermanent
oremises.
The
premises
information
including
unitareaneededfor production
is obtained
from
production
premises
department.
Somefactorsneedto beconsidered
regarding
as follow:
.

Location:lfthe propertyis closeto cityor towncentrethenthebusiness

willbecomemorepopularandfamjliar.Theproperties
need

to be locatedwithintheseareasior somereasonssuchas eastto tind,

easeof transportation
bothfor produclandemployees,
easeof
accessibility
for distribution.
ForOx)rcheck
theproperty
is preferably
betterto be basedin a popularareasuchas Wolverhampton.
Birmingham,
Solihull,
andTelficrd.
Theseareasaresuitableand
popularfor business.

. equipments:Theinitialequipments
willincludeworkarea,spacefor
PCcomputer.
growsandimproves
As th6business
moreareawillbe
addedsuchas biggerareato accommodate
thegrowingwoakforce,
stafi r@m,stockor storagearea,CADd$ign room,officofor sale,
gnquires
purchase,
@mmunication
andseparate
roomsforeach
direc{or.

. Expendltures:
Thisfactoris verycrucial.Themembers
of the
companyrsquirenegotiating
andmakinga finaldacision
to fnd the
mostcosfeftctive properties.Theproprtioswill alterfor coming
yearsof 2, 3, 4, and5. As Oxycheck
financial
develops
it is crucialfor
thecompany
to minimise
theunnecessary
costs.

3.1 YearI
Year1 tyillbe verysucialfor companyin termsof cost.Because
ihe business
is in itsinitialstageandlowsalesandpmft therefore
it needsto savemoney
as muchas Oossible,

Afterdiscussionbetlvendirectorsof thecompanytheycameupwitha
solution,
a cost-effective
way.Thesolution
wasto runthebusiness
in the
existingpremisesandfacilitiesownedbythe direc-tors.
3.2 Year2,3, and4
Inyear2 thecompany
willintendto developin termsof premises
andsales.
Oneot thewaysof achieving
thisis to locatesxternalpremises
with
equipments
andfacilities
to meetandaccommodate
thegrowingin s3lesand
demand.
Theris cunentlyan idealindustrial
unitin Birmingham'?
:
Actdrw:75-79WrightStreet,SmallHeath,Birmingham,
810gSP.
SIze.'68 so m
Ierrurcj To lgt - lt allo/vsa tenantto give3 monthsnoticeto vacateafter12
monthsoccupation,
DescrtplionjThe unitswill be of stelportalframeconsiructionwithbrickand
blockinill to halfheightandmetalcladding
abovewithprofilematalcladroof
-

incorporating
rooflights.Theunitswillbenefitfromconcrete
floor,fluorescsnl
poweroperated
striplighting,
rollershutter,3-phasepowerandtoiletfacilities.
Theofficspacewill benefitfroma 3KWheateranddoubleglazedwindows

'

fittedwithintemalscuritygrills.Thepremises
willalsofeaturesecure
perimeiar.
Cosf.'Thispremises
costs1680perannumto rent(C140permonth).

Figure3.1shor/stheimageof theunitin Birmingham.

2-

OfilineEource-htts/'dw.nattrassgiles.cortprcpedyB00,pdf

Figure3.13:Typical
unit
Thesepremises
willbe usedtemporarily
as Oxycheck
develops.
These
premiss
arelocatedin a populated
andeasilyaccassible
area.
Theareaof premises
allorvsenoughspacefor assembly
lineandalsoboard
of direc{ors.
ThisalloivsOxycheck
professionally.
to developin its business
Utilities
psryear(e,t25per
andfacilities
costestimated
appmximately
,11500
month).
3.3 Year5
Inyear5 (endof year4),Orycheckwillerpandintoa fullydeveloped
and
established
irm. Bytheendof ysar4 thecompany
willbacomsmore
rocognised
gro\rsthe numberof salesgrows
andpopular.
As thecompany
therefore
thsrsis a needto expandthecunentpremises
as it is small,not
suilableto oporateandinconvenient
forworkers.
Thesuitablepropertytor developedOxycheckis4:
Addess,'CityTradingEstate,lcknieldSquare,Ladywood
816oPP
Sizei 100sq m
TenureiTo let - wayof newleasesof lengthto beagreed.
Description:The premisesare of steel portalframeconstructionwith brick
andblockinfillandlinedmono-pitchroofsover.
3.

Ofline &@lmigc takDntrornhtF/M.natbassgiles.coolproperty/3oo.pdf

Onltie sur6 - htFr i/ww.nadRsssiles.com/,trorrty/37.pdt

In themainthe unitsbeneftfiomfluorescent
striplighting,3 phaselectricity
androllershufter,concertina
loadingdoorto thefront.WC. facilities
arealso
providedwitheachunil.
Cosi,'This premisescostsE5{t 1 perannumto rent (426permonth).
Figure3.2showsimageof ihe unitin Birmingham.

Flgur3.25: Industrial
Unit

Theptoprlywillhelpto fumlth6rquirements
of Oxycheck
andalsoprovide
spacefur directorsandsecretaries.Utilitie.e
wouldapproximately
costf2500
peryear(f,208per month).
Forthe first 5 yearsthereie no needfor prmisedevelopment
endnew
comlruclion.

4, Insunnce
Manybusinessas
suchas wholesalers,
manu{acturers,
suppliers,
wholesal6rs,
importorsandexporterswill r6quir6insurance.Thepolicyis to protectboth
customersand businesses
againstunwantedevents.

6.

q he sorrc - lmasetaknlrdn ht$:/ sw.naftassgiteacodpropenyBT.pd

10

O)'Vcheck
willalsoneeddifferent
typesof insurance
whicharenowrequiro
by law.lt couldbecoverthata sensible
andprudentbusiness
willtakeoutto
protecithebusiness
in theevenlof loss,damageor a claimagainstthemfor
damageor negligence.

Thetypesof insurance
lhatOxycheck
willneedto useareas follow6:
4.1 LiabilityInsurance:
.

Employer Liability:Mostbusinesses
willrequiresomelevelof
liabilityinsurance.
Themainliabilityinsurance
thatis required
by lawis
employers'
liabilityinsurance.
EmployeIs'
liabilityinsurance
covers
employees
againstinjury,illnessor diseasecausedduringthcouBe
of theiremployment.
ForOxycheck
thiskindof coverwil notbe needed
untilyear2. Fromyear2 onwardsagnumberof employees
increases
eachyeara morepayment
willbs required.

PublicLlability:Publicliabilityinsuranca
is insurance
againstdamage
causedto thirdpartypropertyor penions.

. ProductsLiability:lt relatesto anydamagecusadby prcducts

suppliedby a eompany,
whethermanufaG-tured
by themor not.Thisis
crucialformof insurance
for Oxycheck,
espacially
as lhe productis
usedby diversunderwater.
Thesupplier
of theinitialcomponent
which
causedtheproblem
wouldalsobe investigated
andOxycheck
would
notbe completely
responsible
forthedamage.

6.

fiine3ow@- ht&rM!1'br6inessinsure.e.uklbusinessimuranequotes_0o2.htm

ll

ProfcssionalIndemnityInsurance:professional
Indemnity
Insurance
(Pl)coversOxycheck
in theeventthata thirdpartyshouldctaimfor
mistakes
thatOxycheci(
makeor ifthe companyis foundlo be
negligent.
Professional
indemnity
coverOxycheck
fromanycustomers
,l\/ho
feelthattheScubawarningairdevicis unsafeanddangerous
whichis minimalfor Oxycheck.

4.2 PropertyInsurance:Thiskindof insurance

@versfirs,axplosion,
etc.
thisalsocoversanymaintenance
failure,lighting,
etectricity.
4.3 Bu$inesaas8etsand EquipmentInsurance:Thiscoversa rangeof
factors,including
stockwhichis damaged
or stolen,machinery,
electrical
equipm6nl,
moneyloss(suchas cash,cheques),
laptops,mobiles
and
BtC.

4,4 TEdesmenInsurrnce(K6ymanCover)?:Tradesmen
lnsurance
is
d$ignedto protecta business
shouldthekeypersonssuchas directors,
dior beseriously
injuredandunablto work.
4.5 BueinsasInterruptlonInsuranca3:
provides
Thisinsurance
coverfor
anyexpenses
incuradfor temporary
hireof replacemant
equipment
folloiving
damageto anyof itemsinsuredundertheOf{iceContents
of
Portable
Equipment
cover.
Thecostot insuranc6is differenteachyearfor Orycheck.FortheJirstyear
thecostof insurance
is minimal(withnopremises
andnoemployees).
Tne
costof insurance
willgradually
increase
fromyear2 onwards.

6.

Onktesoscs - Elo1ww'Gdsreapusiness.do.utdrevmdn.nrml
qrc soure nmr'/ww.@LrroFprnchard.@m6usioesenreruoron.dsp

t2

Theestimated
insurance
costfor eachyear(fromyear'1to year5) is shownin
t able4. 1 .
Year lnsurancecost (oervear) Insurancecost (Permonth)
1
E1020
e85
2
21440
8120
3
81776
8148
4
e2640
5
23120
e260
Table 4.1: Estimatednsurance
Cost

5. Legalfees
It includes
solicitor
fees.In yearonesolicitor
willassistOxycheck
in registering
thecompany
anddealingwithlegalandofficialtasks,Inyear2 onwards
the
willremainanddealwithOxycheck.
Table5.1showstheestimated
solicitor
cost
of legalfeesfor eachyear.

Year Totalcost
t450
t360
1110
4
8110
5
t1 1 0
Table5.'l: Estimated
legalfees
1

6. ProductCosting
partsin bulkpluscostof manufactured
partsgivesalmost
Thecostof standard
totalproductcost.Inorderto reducethecostof productmanufacturing
afier
discussion
between
directors
of thecompanyit wasdecidedthatcompany
will
purchase
partsin bulkandrestof thepartswillbe manufactured
thestandard
by
(Manufacturers).
Allthe information
for productcostingsuchas
outercompanies
costperunit,Costof bulk,andcostperunitin bulkareobtained
fromproduction
deDartment.

13

a
6.1 Partcosting
Thecostof partsis madeupof twogroups.Twogroupsof partsarestandard
partsandmanufactured
parts.Theinformation
is gainedfromproduction
section.
Thecomponents
andtheircostsareshownin table6.1.
Part

Costper unit

Costof Bulk
fl500)

Costperunitin bulk

TPSAorecision
transmitter
Pressure
Vibrator
26DL24O765212
Plasticcasino
Mainsal
O rinEsal
Screwo rinos
Elsc-tronic
modul6
Neck brace

e65.98

862,985

41.99

1.90

t2 1 0 0

tl.40

1.50

t1425

0.95

1.30

975

e0.10

1200

e10.95
e15.00

e0.65
e0,35
e0,80

7485
84485

e4.99

Adapior

e3.50

3000

Battary
LED
High-Temp
Air
HoseConneclor
Screw

2.00

L C .Z V

e0.39

6435
435

10.50

13200

r0.18

150

LOZO

t8.80

Table6,t: Costof standard

Darts Total=

e0.10
ffi9,A0

TotalMould(twoplasticcasings)
Costs= 25,250
Totaloroductcost= f,69.60
Besides
costof oneunitproduct(69.60)
othercostswillcontribute
to tha
estimation
of finalunitpriceof product.
Totalcostof yaart hasbeenconsidered
anddividedintonumberof salesin year1 whichis 1450(Table6.2),
Deecription
Insurance
Legalfees
Utilitybills
Hardware
and
Sofiware
Advertisingcost
Distribution
cost
Mouldcost

Expendituresin vear'l

per unit
Expendlturas

LOJO

450
8220
1173.56

e1804.48
t6584.9
t9700
perunit
Table6.2:Expenditures
=
per
Totalexpenditures unit e14.2

90.44

c0.31
e 0 .1 5
e 0 .8 1
E1.25
04.54
6.70

t4

in theestimation
of finalunitpriceof Droduct.
Otherminorcostsareconsidered
6,2 Costof partseachyear
willbe basedon predicted
Thecostof components
salesproduced
in marketing
All thecomponents
willbe purchased
in bulkof 1500for theamount
department.
Thiswillreducetheamountof purchasing
of saleswhichareforecasted.
and
keeptheamountof stockto a minimum
level.
to predicttheexactamountof saleand
Ontheotherhand,it is impossible
dueto
demandfor comingyeaEandalsosomepartsmightneedreplacement
Therefore
faultyduringmanufac{uring
andassembly,
Oxycheck
willconsider
extrast6k to compenste
thatunpredicted
shortage.
Table6.3showsforecagt
numberof salesperweek,month,andyearfor 5 yeaB.

Yoat

Porweek

PerMonth

12'l
b5

Total

152
266
316
829

608
1066
1268

3322
Table6,3:Predicted
amounlof sales

PerYear
1450

3150
7300
12800
15200

39,900

Th6 totalmouldand toolingcost will be paidoff ov6rtho l2monthsof firsty6ar.

Table6.4 showstotalcostof producleachyear.

Year

Amount

PerYesr

1
2

'1450
315 0

100.920
t215.240

7300

t508,080

12800

15200

f890.880

e1.057.920

Per Month
8.410
814.270

t42,340
274.240
e 8 8 .1 6 0

Table 6.4: Produc{cost

15

7. Employee(Staff,Labour)
Therefore
Anycompanyneedto havea planfor itsstaffrequirements.
in order
in first5 yearsit is essential
for Oxycheck
for Oxycheck
to runefiiciently
to have
willtryto keepits staffin minimum
an efficientplanfor itsstaff.Oxycheck
levelin
orderlo reducethecostandsavemoney.Thecompany
almostwillnotneed
staffto carryoutthejob because
theproductis simply
expertise
or experienced
for assembling,
testingandpackaging.
Thecomponents
whichrequire
designed
willb manufactured
by different
companies.
Oxycheck
will
to be manufactured
andgecurity
fromyear2. A secretary
willbe required
employan accountant
and
periodwitha fixedsalary.
in long-term
assigned
to theOxycheck
for production
All theinformation
rsgarding
staffrequirements
areastimated
and
obtained
fromDroduction
deoartment.

Therequirements
of lhe secretary
andaccountant
are:

Recording
company's
database
andinformation
Administrating
company's
lossandprofit
Dealing
withcuslomers
Dealing
withproperty
andinsurance

Therefore
mustbeexperienced
bothsecretary
andaccountant
andhave
knowledge
andgoodcommunication
andbe ableto workin a team.
of computer

16

in caseof faultyin
willbe neededfor repairement
or specialists
Notechnician
or refundwill
as replacement
productreturned
or duringassembling
by customer
salarywillvaryeachyear.Thisis to ensure
be issuedinsteadof repair.Directors'
anddevotedto thecompany.
arecommitted
thattheboardof directors
butit willneedlong{erm
at thebeginning
is a smallcompany
AlthoughOxycheck
for
andprovidethemwithsomebenefitssuchas travelexpenditures
assemblers
peoplewhodon'thaveprivatetransportation
andalsosickpaywillbe
considered.
willbeE8perweek
or travelfor eachemployee
Thebudgetof transport

7.1 Statfrequiremonts
neededto meetthe
numberof employee
It is vitalto predicttherequired
wouldbeassigned
to Orycheck
production
rate.lf therightnumberof employees
haseffecton
whichconsequently
willbenefitfromcostefficiancy
thecompany
productivity
of thecompany,
4
Therefore
to table6.4amountof 1450in yearonewillbeproduced.
According
thatonelabourwill
willbe ableto produce120permonth.lt is assumed
directors
each
at least120unitspermonthin firstyear. Therefore
beableto assemble
30 perweek(From9amto
willbe expected
to produceapproximately
assembler
sales(120permonth).Thebaseof
to thepredicted
spm- fulltime)according
perweek.Andthenumberof
willbe 30 unitsperassembler
calculation
yearswillbecalculated
according
to firstyear.
forfollowing
assemblers
Requirednumberofsfaff= Numberof produdionpermonthdividedinto120
permonth).
(Number
of finishedproductperemployee
permonthhasbeenextracted
fromtable7.1.
Numberof production

t7

Year

Required
numberof
production(per
month)

Numberof
productionper
employee

Numberof
employees

'l

120
262
609

't20
't20
120

None

2
4

'1067
't267

120

11 + secretarv
Table7.1:Numberof required
employees
120

As it was said in year 1 no staffwill be employedand the directorsof the

company
willcarryouttheassembling
tasks.

7.2 Dircctorssalary
Directoissalarywillvaryeachyear.In yearone,35o/o
of thesaleswillbe
(Marketing,
designated
forallthedirectors
Design,Production
andFinance).
In
yeartwolessthan2070of thesalesin y6arthrse20%,in yearfour25%,andin
yearfive25%of thesaleswillbe designated
as director's
salary.Thedirctors
willworkforthefirsttwoyearsas parttimeuntilyear3. Thefinalpriceof each
unitforsaleis e122.
Thesalaryof eachdirsctorcanbs oblained
fromth6following
relations.
(Variable
Tohl dlrectorssalaty= Percentage
percents
eachyear)x salesper
year
Table7.2displaysestimated
directofssalary:
YeaI
1

Salesperyeat Salaryof directors

oervear
cal olq
176.900
e384,300
e63.409.s
890,600

e1,561,600
e1,854,400

Salaryof directorsper
month

217A120
390.400

15.159.58
85,284.13

e 1 4 .8 4 3 .3 3
e32.533.33

463.600

Table7.2:Directors
salarv

18

7.3 Employeerequiroments
for year1
In year1 to minimise
thecostsnolabourwillbeemployed.
Atlthetaskswillbe
caniedoutby directors.
Thetaskswillbeassigned
to thedirectors
equally.
Designandproduclion
directors'
responsibilities
areas follow:
. Assembling
.

Packaging

Marketing
diractor's
responsibilities
areas follow:
. Advertising
.

Distribution

Finance
director's
responsibilitias
areas iollow:
. Accounting
.

Dealing
withcustomers

7.4 Employeerequiruments
for year2
In ygar2 as thasalesrateincreases
ther6willbe a needto employextrastatffor
assembling
andmanuallasks.According
to table7.1in year2, twopersons
will
berequiredas fulltime.Theirtaskwillbeassembling.
AllfiguresincludeNational
lnsuranc
numbarandtax.Table7.3displaysmployee's
wagein year2.
Job

(FT)
Assemblers
Security
Accountant
Secretarv

Numberof
emDlovees
1
'l
1

Rate of paye

Houraper
weSk

5.52
5.52

38

e5.52

38
38

E5.52

JO

Totalper
vear
821,528
E10,764
810,764
e10.764

Table7.3:Totalemployee's
wagein year2
Totalstaffsalaryfor year2 = 953,820
9,

Onlhesource-htts;/helvs.bbc.co,old1/hi/b$in*s/6425965.strn

19

7.5 Employeerequirement
for year3
As theamountof production
andsalesincreas$for thethirdyear3 more
employees
willbe requi.ed.
Threeadditional
employees
willbadded.Two
employees
willbe assigned
for assembling
andtwoemployees
for packing.
And
oneemployee
willbe neededto assistandwherenocessary.
ln year3 thesalary
for secretary
willbeincreased.
Table7.4displays
wagein year3.
employeo's

Job

Numberof

Rateof pay

6mDlOVee

A$emblers(FT)
PackeB(FT)
Parttimestaff
Secretarv

e5.52
e5.52
1
1

5.52
6.20

Hourgpgr
weeK

Totalper
vear

38
19

821,528
t21,528
84,454
12,090

Table7,4;Totalemploye's
wagein year3
Totalstaffsalaryfor year3 = 859,600

7.6 Employorequiramont
for year4
In year4 additional
labourg
willbeemployed,
andall of themwillworkon fulltime
basis.Table7.5displays
employee's
wagein y6ar4.
Job

Numberof
emplovees

Ratoof pay

Hoursper
wook

(FT)
Assemblers
(FT)
Packers
Secrlerv

4
4
1

15.52

38

e5.52
e6.20

38
year
Tabl67,5:Totalemployee's
wagein
4

Totalper
v0ar
e,056
t43,0s6
e12.090

Total 3taff safaryfor yeat 4 = L98,2O2

20

r
7.7 Employeerequirement
for year5
willlooklo developintoa professional
Owingto growingin sales,Oxycheck
in year5. Therefore
in year5, 6 assemblers
and6 packerswillbe
company
needed.In year5 therewillbea needfor an extrasecretary
andwillbe
Table7.6displays
wagein year5.
employed.
employee's
Numberof
emDlovees

Job

(FT)
Assemblers
(FT)
Packers
Secrebrv

Rate of pay
85.52
85.52

Hoursper
week
38

LO,ZV

Totalpor
vear
t64,584
64,584
e24.180

Table7.6:Totalemployee's
wagein year5
Totalstaftbalaryfor year5 = 153,348

8. WiliU Bills
is oneof thefactorswhichcontribute
to thecostin annualcashflow.
Electricity
(Acompany
The
Theeleclricity
is suppliod
by Poworgen
of e.on)company.
greatdealof elec-tricity
as themanufac'turing
tasks
Oxycheck
willnotconsume
partswillbe
coneume
bigproportion
of electricity
andthemanufacturad
produced
In year1 thetasks(assembling
andoffice)willbe
by outercompanies.
homeandtheirgarages.
Estimated
costsfromyear'1to
carriedoutat directors
year5 aredisplayed
in table8.1.

Year CostDeraeason Totalcost Dervear

'l

e5s
e55

t240
1240
e60
5
2240
60
Table8.1:Estimated
eleckicity
charges
3

LOU

2l

9. EquipmentandTool
willrequirea rangeof equipment
andfacilities
to
Eachcompanyor business
(Hardware
willincludecomputers
andSoftware),
operate.Thesefacilities
regarding
equipment
andtoolfor
furniture,
andetc.alltheinformation
carpentry,
production
costfor production
is gainedfrom
suchas toolandequipment
production
department.
9.1 Computer(Hardwareandsoftware)
for anybusiness.
is oneof theessential
equipment
Computer
computer
hardware
andsoftware
is
of theOxycheck
Foralmostallsections
essntial.
.

to createwebsites,
leanets,
onlineadverls
Marketing
needscomputers
(Onlinepurchasing
andselling),producing
salesgraphsandcreating
statistics.

for CADdesigning
to
Designwillneedcomputer
software(CADsoftware)
warningsystem.
dasignanddevelopSCUBAairpr6ssura

for planning
theassembly
layoutof the
Production
willneedcomputer
company
andalsoplansof assembly,

o Finance
willneedcomputer
to produceaccurate
cashflows,andk6ep
records.
Thedetailsof a propercomputer
for reasonable
Oxycheck
areexolained
as follow'o:
Derformance
.

3.2GHzIntelDUALCORE3.2GHz

e 2GBDDR2RAM
.

HardDrive:320cigabyte

HDDCD Rom:'l6xDVDRewritable

10. Onlinesou.ce- htlpJ vw.sunitek.could

LocalAreaNetwork:
10/100LAN
USB:6 USB2.0ports2 Front4 Back
12MonthWarranty
(3 yearson CPU)

Thispackage
willcost380in firstyear.Thepriceofthe computer
withthesam6
specilications
willbereduded.
Thepackagealsoincludes
onlineservicefor any
technical
issues.Figure9.1showsan imageof 9.2GHzIntelDUALCORE.

Figure9.1": 3.2GHzIntelDUAL
CORE

Forfirst yoarOxychckwill needonlytwo pos. ThsBtwocomputerswill be

ueedbydiroctors
andtheywllleharthePCs.In year2, Oxycheck
willpurchase
twocompulers
withsam6specifications.
Iny6ar3 andSthecompany
will
purchase
1 computer.
During5 yearsalmoslallthemembeBof thecompany
will
owntheirc|lflncomputeB.In trmsof sofir,vare
companywill raquirea rang6of
software.

11, Ordlnesource- IrEg taknnom htlp:/tuwwsmitek.co.uv

Soft^rares
whichthe companywill needa as follow:
.

Miqosofi officeXP protessionalt?

- 65

sotidworks2006,r- 141.78

Table9.2 displayseslimatedcostsof computerhardwareand software.

Ycar
'1

Hardware
1550

4
5

e370
e0

Software
e413.56
8413.56
8206.78
cn
E206.78

Total(pervear)
t1 1 7 3 .5 6
963.56
t576.78
2476.78

TablE9,2:Eslimated
costof hardware
andsofrware
9,2 Offlceequlpmentg
Oxycheck
willneeda rangeof equipments.
Thes6quipments
includefumiture,
computer
desk,tables,carpentry,
tilingcabinets
andetc.
A listof equipments
is explained
as follow:
Offce D6sk'Thedeskwillbesuitableforfourdireclors
(Figure
andsecretary
9, 3).

Figure 9.3'a:Officedesk
The pricfor eachdeskis t129.99.
ln year2, 5 deskswill be purchased.And in yearS, 1 deskwilt be purchased.

12. onlingsurce - htEritrlvw.am4zon

@m/l!l'cr
o3otioffice-Protessionat-ord-v.Fion/op/B0o0o5AF
to
13. unnnesurce - M.rournevedeuropecoo
onlhesurce- lmg!taken t|m
@

24

Table9.4displayscostof officedesk.

Year

Numberof purchased
deak

Cost per Total cosi

unit

0
129,99

8649.95

4
1

"o"
Tablo9.4: costo{ offce desk

!95

Sfadonrry.'lt includes
A4 paprs,pen,pncil,notebook,
file,inkandetc.
Thecostof stationaryfor eachyearis estimatedas below(Table9.5).
l

Yaar Total coat Dervear

1

'150
E5
LOO

60
E0
Table9.5:Costof stationary
4

Secu/nySafe,'h year2 Orychgckwill ne6da safe(Figur69.6)to ke6pits

documents
andcash.Thecompany
willpurchase
a safain year2. Thesafewill
coet105.00.

Figure9.6't: Security
safe

1A OnHne.ourso - tmagbt6n fom htby rww.bkmsecudrv.cn/*curitv.html

25

TaUefor assemuing..Forassemblingthe productfromyear2 till yearSthe

company
willpurchase
2 tableseachyear(Figure9.2).Thecostof eachtableis
20pertable.Thecostof tablefrcrachyearis estimated
as followffable 9.8).

Flgurr 9,716:
Aseembling
table

Year Numberof unlt3

'l
2

Totalcostperyear

E40
40
4
2
40
e40
Table9,8:Estimated
costot asbembling
table
Oflct chrin in yaar2, fouroffce chairswill be nededfrcrdirec{orsandone
chairwillbe neededbr secrEtary.
In yearfiveongchairwillbe purchased.
Each
chairwillcost!55.
Cost3of chaiBareestimated
in table9.10.

Figure9.9'7:Oficechair
18. Oflih. lourc6 - lm.g. tat6n trdr Bvw'cbsv.co.uk
O h. !our@ - lm.g. laLn ftDm\rvrw.ebav..o_uk

26

Year Numberof units Total cost

0
0
2
4
n
0
1

Tableg,l0: Costof ofticechair

OfficBcabtnet:Orydrckwilt needtilingcabinotsto storedocumentsandofficial
l6tters.lt willcoste33andlhe company
willpurchase
a setof drawings
in year2
anda set in year5 (Figure9.,t1).

Flgutc9.1113:
Ofica cabinet
TablsS.12 displaysco6tof ofticecabin6t.
Yeal
'l
o

Numbsrof unlts Total colt

0
0
1
e33
0
0

Table9.12:Costof officecabinEt
Cabtnatlor employeE(AsEqrrbte6): Fromyear2 Oxycheckwill start
employing
labour.Therefore
theywillboassigned
6achon6lockerto keeotheir
stuff.lt willcost35fur eachtockar(6 drawerson eachlockor_ Figura9.1a).
Thecostof loc*ersis estimaled
as bello\ (Figure9_.14).

onln $urc. - ldag. takentilm ww.6bv.co.ut

27

Flgun 9.13": Assembler

cabinet

Yial
1

2
3
4
5

Numbe.of unltl
I
1
1
1

Totrl coct
35
e35
ctt

35
4aa

Tlblo9,{.[:Costofassmbler
cabinet
Chrlr fo/,ts'f,mbLrt: eachassembler
wllllquirea chairfromyear2.
It willcod el0 peredrchair.Thecostof cfieir3is es$mated
as bolo\,(Tabte
9.15).
Yeat l{umbrof unltt Totrl coot
1
0
0
2
820
3
4
40
4
6
80
5
12
8120
Tlble 0.15:CoBtof chairassmblerB

11 q*i.

tlrt

- [n g. t t n tan ww..b!y.co.uk

2A

Coffeemachlne:in year2 a cofbe machine

willbe purchased.
lt willcost77.

Figure9.16'o:Cofiaemachine
9.3 Tools:
Basictoolswillb6 rquirod
to assemblo
thecomponents.
lt is nota highly
probseionaljob aEassomblelscan be trainedto carryoutth6job.
Thetoolswillincludescrewdrivor,
plirs,andcutter.A s6tof screwdriver
and
plierswillcost35andcufterwillcost84 ach.ThEcostoftoolsis sstimatod
as
balow:

Flgure9.17": Toole
Table9.18 displayscostof tools.

Year Numberof unltg Totalcost

1
2

t74

274
Table9.'18:Costof tools

20, on&!3 .ourc. - lm.gr t6knno|n ww-ebav.co.|rl

21, onlh. sourc. - lirgc talcn fiom wt1w.ebav.co.uk

29

Solderingiron: Soldering
troncrmpleteKitwilhSlandwillbe purchased
for
eachassembler
eachysar.lt costse8.OO.
Figure9.19showsan imageof
solderingiron.

Flgure9,19:Soldaring
ircn(www.ebay.co.uk)

Table9.20show8totalcostof solderingironeachyear.

Yoar

Numberof a$embletE

Cost

4
2

!16

3
4

4
o

e16
L,tz

48

30

10. Advertisingcosts
methods
to elevateandpromote
Oxycheck
andSCUBAair
Therearedifferent
pressure
withmarketing
warningsystem.Afferdiscussion
directormethods
of
regarding
is
wereappointed.
Andalsoalltheinformation
advertising
advertising
gainedfrommarketing
department.

willbe usedthrough5 years.

Thefollowing
methods
.

Exhibitions

Publications
andmagazines

Leaflet

o Email
.

Retaiting

. Website(lnternet)
by marketing
director.
Belowis an estimated
costperyearprovided
10,'l lnitialadvertising
cost(Table10.1)
Desktoo
comDuter
(Microsoft
FrontPaqe
2002)
Webdesionsoftware
qraphical
(3D
Software
for
desiqn studiomax)
flashMX2004NirtualRealitv)
lllustratino
withmacromedia
Table10.1:Initial
adverlising
cost

s380.00
54.99

e1 4 .4 9

lnitialAdvertisingtotal cost = f524.48

10.2 Advertising
costfor yearI (Table10,2)
Exhibitionsn NEC(Divingshow)
Exhibitionsn London(Oivinoshow)
Advertisino
n Diversmaqazine

180
250
190

oDtion1
ViroinsBusiness
broadband
(3000)
Emailthrouoh
BSAC

e480
Et8 0
Free
Oxvcheckwebsite
Table10.2:Advertising
costfor year1

Total cost = '1280

31

10.3 Advertisingcost for year2 (Table10.3)

Exhibitionsin NEC (Divinoshow)
Exhibitionsin London(Divinqshow)
Advertisinoin Diversmaoazine
ViroinsBusinessbroadbandogtion1
EmailthrouqhBSAC(3000)

?210
8210

e480

e180

Oxvcheck
website
Free
year
Table10.3:Advertising
costfor
2
Totalcost = 'l370
10,4 Advoftbingcostfor year3 (Table10,4)
Exhibitions
in NEC(Divinqshow)
Exhibitions
in London(Divinqshow)
t320
Adveriisinq
in Diversmaoazine
t230
VirqinsBusiness
broadband
oDtion1
e480
EmailthrouohBSAC(3000)
e180
Oxvcheck
website
Free
Table10.4:Advsrtising
costfrcryear3
Totalcost = 1440
10.5 Advertlsingcostfor year4 (Table'10,5)
Exhibitions
in NEC(Divinoshow)
t250
Exhibitions
in London(Divinoshow)
Advertising
in Diversmaqazine
1230
ViroinsBusiness
broadband
oDtion1
t480
EmailthrouqhBSAC(6000)
t380
wEbsite
Freg
Oxvcheck
Table{0.5:Advertising
costior year4
Totalcost = e1700
10.6 Advertblngcost for year5 (Table10.6)

Exhibitions
in NEC(Divinqshow)
Exhibiiionsin London(Divinqshow)
Advedisinoin Diversmaqazine

e280

VirqinsBusiness
broadband
option1

e480

EmailthrouqhBSAC(6000)

400

e250
380

Oxvcheckwebsite
Free
year
Table10.6:Advertising
5
costfor
Totalcost = !1790
32

cost(Table10.7):
of advertising
10.7 Summary
lnitialCostinq

Year1
Yeat 2

Year3
Year4
Year5

Total

8524.48
E1280
81370
L1440

e 17 0 0
e 17 9 0
e 81 0 4 .4 8
cost
Table10.7:Totaiadvertising

11. Distribution
cost
postageinternetpurchasing
is
service.Thedistribution
It includespackaging,
thatare
or channels
of distribution
withthesupplychainsfront-end
concerned
to movetheproduct.
dasigned
withmarketing
director,it wasdecidedthattheproductwouldbe
Afterdiscussion
andinternet(directselling).Oxychock
throughretailers
soldanddigtributed
predicts
thata 40%of thesaleswillbethroughtheretailers.
on Internetis PayPal.
Oneof themostpopularmelhodsof sellingandpurchasing
andmongytransfers
to
busingss
allowingpayments
PayPalis an e-commerce
Therefore
the Paypalservicechargefor the60%
bo madethroughtheInternat.
of directsalsswillbeas following:

per
of retailpricepluse0.20
11.1Paypalservicecharge:1.4percent
transaction.
(director)agreedontheretailpricewhichis e122.
Members
of theOxycheck
xt122 + 10.2
Paypal
service
fee= 1.4Vo
Therefore:
Thetotalcostfor Paypalservice= e1.708r e0.2= e1.908perunit

33

Thecostof Paypalservicethroughout
fiveyearsis as foltowing
(Tabte11..1).
Year

Unitsalesper
Year(60%)

1
2

1450
3150
7300
12800
15200

Directunit sales Paypalservice

Dervear
fee
870
1890
4380
7680
9120

t1,659.96
t3,606.12
8,357.04
t14,653.44
e17,400.96

Table11.1:Paypalservicecost
Note:In orderto helpthecompany
to coverthedistribution
postage
cost,e6.SO
chargewillbe addedto the retailpriceoithe product.
Packaging
cost:
. Vvlitepostalboxes(200mmx 140mmx 75mm)
. 50 boxesfor!14.30
.

Bubblewrapping
for
- largeroll(50metersroll)covering60 packages
e19.04

Therobrepackaging
costwillbefigursdoutas followingl
Boxes= 414.7
Bubblewrapping= 460.1
Totalpackaging
costforyearI = e874.8
Postagecost:
parcelservicecostuplo 1Kgis e3.85andupto 1oKgis el i.45.
Standard
Therefore
an averagepostagecostof 92.60wiltbe appliedperunit.
11.2 Distributionco6tin year 1 (Table11.2)

Paypalservicecharqe I t , 6 5 9 . 9 6
Packaqino
874.8
Postage
83,770

Total

6,304.76
Table11.2:Distribution
costin vear1

'11.3 Distributioncost in year2 (Tabletl.3)

Paypalsrvicecharqe 3,606.12
Packaging
t1,900.5

Postage
Total

e 8 ,1 9 0
13,696.62
Table,t1.3:Distribution
coslin vear2

I1,4 Distributioneost ii year3 (Tablelt.4)

Paypalservicecharoe e8,357.04
Packaoino
E1,494.3
Postage
18,980
Total
Q31,741.34
Table1'1,4:Oistribution
costin year3
11.5 Dlstributlonco.t In year4 (Tabte11.5)
Paypalservicecha&e 14,653.44
Packaqino
PoEtag6
33,280
Total
f55,650.14
Tablett.5: Distribution
costin year4
11.5 Distrlbutioncost in year5:
Paypalservi@chame 17,400.96
Packaqinq
89,170.7
Postage
39,520
Total
66.091.66
Table11.6:Distribution
costin yeai5

35

12. Retailof product

Thefutureof anycompanyincluding
Oxycheck
is deeplydependson itstotal
proUtperyear.Oxycheck
willhavea largeandproUtable
marketas theSCUBA
air pressure
warningsystemwillbe cheaperandmorecompetent
comparing
to
its similarproducts.
Aftermeetingbetween
directors
andconsulting
withallthe members
of the
andconsidering
Oxycheck
costof prcduction,
distribution,
salariesit wasdecided
pricewithsufficient
profitis !t22.
thatthemostreasonable
At thefollowing
tablecostof salesis calculated
againstexpenditures.
As directors
arethe maininvestors
in thecompany
andtheirsalariesincrease
whensalesincrease
theirsalarywillnotbededuced
fromtheprofit.
(Table12.'1):
Totalprofitscanbegainedfromfollowing
formulas
lt is estimated
that1.7o/o
of theretailpricewillformthefixedoverhead
costs.
Sales= Predicted
unitsalesperyearx 122
Net profits= sales- costs(1.7o/o
of ."-tailpricefor fixedoverheads
eachyear,
production,
wages,distribution,
andetc)

Year
1
2
4
5

Sales

Productand
Distribution
cost

f 17 6 , 9 0 0 L107,224.76
e384,300 t232,936.62
t890,600 1539,821.0 0
e1, 5 6 ' 1 , 6 0 0e946,536.1 4
e1. 8 5 4 . 4 0 0
El.124.O11.66

Wages,salaries
(withoutDirectors
salaries)

r0

!53,820
59,600
E98,202
t153.348

1.7o/ool

retailprice

Profitper
year

3,007.30 166,667.94
e 6 , 5 3 3 . 1 0 e 9 1 , 01 0 .2 8
El5,140.20 1276,038.80
t26,547.20 490,314.66
t31.524.80 545,515.54

Table12.'l:Totalprotitperyear

36

Chart12.2showstheamountof profitperyear.

F 300000

Chart12,2:ProJitperyear
Thegraphandtableaboveshowsthattheprofitof Oxycheck
willincrease
from
yearoneto yoar5. Oxycheck
alsowillbeprofitable
after5 years.
After5 yearsOxycheck
willbeableto expanditsbusiness
andpurchass
itsown
machinery
andimproveanddeveloptheproductandmanufacturing
different
producisrelatedto SCUBAdiving.

12.'l Tolerancoin sales

All thesalefiguresandstatistics
arebasedon prediction
whichis at best
estimated
figures.lt is clearthatin realityandpracticethesalenumbersand
statistics
becomedifferent
fromtheestimaled
andguessed
figures.During5
yearssalemightincrease
or decrease.
Therefore
Oxycheck
willconsider
a
tolerance
of 14%of sale(Salesi '14%).

37

The tablebelowshowsfigureswhen salesare 14olo

abovethe predictedsares.
As it was told in section5.2, extraproductswill be manufactured
within5 yearsin
orderto compensalelhe lack of productlvfienthe salesare abovethe predicted
figures(Table12.3).

Year
1
4
c

Sales + 14%of
gales
201,666
E458,'tO2
t1,o15,284
81,780,224
22.114.016

Expenditures
t110,232.06
8293,289.72
614,561.20
t 1,071,285.34
t1.308.884.46

Table12.3:Profitpryear(+14%)

Profitperyear
891,433.94
E144,812.28
8400,722.80
e708,938.66
e 8 0 5 .1 3 1 .5 4

Chart12.4showsproftperyear.

Chatt 12.4tProfitper year (Sales+147oof sal6s)

lf thesalesarelessthan14%of predicted
tiguresthenOxycheck
willrequirean
planto copewiththe reduction
emergency
in sales.

38

Thetablebelowsho./sthatOxycheck
willmakeprofitafrerreduction
in sales.
Therefore
Oxycheck
willplanto reducepurchase
of components
andemploy
fewerlaboursthanpredicted
figuresandalsoOxycheck
willplanto stoprne
expansion
of thecompany
temporarily.
Bonowing
moneyfrombankis oneof the
policies
whichOrycheckwillconsider(Tabte12.5).

Year
'l

4
5

Sale3- 14%of
sales

Expnditures

Profltperyear

8152,134
8110,232.06
[41,901.94
t330,498
E293,289.72
837,208.28
e765,916
614,561.20
151,354,80
81,342,976
E1,O71
271,690.66
,285.34
21.594.784
e 1 . 3 0 8 . 8 8 4 . 4 6 285.899.54
Table12.5:ProfitperyaarC14olo)

Chart12.6showsprof(pery6ar.

Chad'12.6:Protitperyear(Sales-14%of sales)

39

Chart12.5compares
protitsin S years.
threedifferent
estimated
Pbtn/Los.lmm.ry

I
*

Chart12.5:ProfitSummary

13. Taxesandbusinessrafes
Therearetwotypesof taxthatOxycheck
willpayto government.
Theyarecalled
VATandbusiness
rates.
13.1VAT
ValueAddedTax,or VAT,is a taxthatappliesto mostbusiness
transactions
that
involvethetransferof goodsor sorvices.
Therearethreeratesof VATin theUK:
17.5%(the"standard"
rate),5%("reduced"
rate)and0%("zero"rate).The
standard
VATrateis 17.5%whichOxycheck
willpayin standardrate(17.S%).
Atl
businesses
whosetaxabletumoveris closeto lhe currentVATthresholds
which
is e61,000willrequireregistering
for VATz.
22. Onlinesource- htF/news.bbc.co
!ld1lhilbusjnesE2965814
srrn({61ooo)

40

Thismeansthatwhenever
thecompany
sellsor buysanything
thebusiness
will
haveto chargeVATon sles,andkeepproperVATrecordson incoming
and
outgoing
transactions
andpayVATto HMRevenue
(HMRC)
& Customs
TheSCUBAair pressur
wamingsystemis identi{ied
as a taxablebusiness.
This
meansthatwhentheturnover
reachesto theVATthresholds
of 61,OOO
thena
17.5%of the products
soldwillbetakenas a charge.A business
willpayVATon
theirpurchase,
whichis calledinputtax,andchargeVATon itssales,whichis
calledoutDuttax.
lf a VAT-registered
business
chargesmoreoulputtaxon sslesthanit paysin
inputtaxon purchases,
it mustpaythedifference
to HMRevenue
& Cusroms
(HMRC).
lf moreinputtax hasbaenpaidthanoutputtaxcharged,
HMRCwill
refundthedifference.
Oxycheck
haspredicted
thatinputtaxwillbe lowerthan
outputtax.Therefors
17.5%chargewillbe issuedon theSCUBAairpressure
warningsystsm.Orychecktumoverwillnotreachthe required
61,OOO
untilyear
2. At theendof year2, theinputandoutputwillbe anticipated
andcalculated
to
specifytheamountwhichwillbe returnsd
to Oxycheck.
Oxycheck
willpredictthat
almost4.5%of theprofitwillnotbe retunedandit willbeconsidered
as loss.And
the restof thatwhichis 13%willbe retumedto thecompanybecause
of Inpur
tax.Table'13.1showssummary
of VATperyear.
Year

VAT (4.5% of sal6)

1
2

e 1 7 ,2 9 3 .5 0
E40,O77.O0
4
870,272.00
b
83.448.00
Table13.1:VATsummary

41

13.2 Businessrates
Business
rates(non-domestic
rates)arechargedon all businesses
according
to
therateable
valueof theproperty.
Ratesarenormally
paidby theoccupierof a
business
- usuallythisis theowner-occupier
or leaseholder.
lf theproperty
is empty,theowneror leaseholder
willbe liable.Everybusrness,
unlessit is exempt,hasa rateable
valuaofthe property.
TheCouncilcalculates
theraiebillby multiplying
rateablevalueof theproperty
bythe multiplier
seteach
yearbythegovernment"
For2007-2008,
themultiplier
is setat 44.4pence13,

Forthetirctproperty
therateis= t'utolo*oo =aar.ru
Forthe newpropedyin year5 the ra," t" = r5111}*0444p
=189.,j.1

14. Availabletypesof financesources

ForOx.ycheck
andatlthecompanies
thesourcesof financeis lmportant.
year1 is a crlticalyearfor Oxycheck.
Especially
Oxycheck
willneedmoneyro
coveralltheexpenditures,
AllhoughSalesplaya majorrolein covering
lhe costs
andsupporting
Oxycheck
butOxycheck
willrequireotherdifferent
finanqar
sourcasto covertheinitialcostssuchas mouldmst, hardware
andsoftwareand
etc.

23. Odinesolrce - htpi//wvwv.tandidge.gov.utdBusiness/busi.essrates/businessrates2O0Z.hlm

42

14.'l Directorrsfinancecontribution
In partnership
companies
direc{ors
arethemainshareholders
of thecompany
andcommitted
to thecompsny.
Therefore
in Oxycheck
alldirectors
willinvest
andcontibutee6,000in thecompany.
Direc{or's
investment
willbeincreased
aachyearas thesal6sincrease
eachyear(Section
7).
14,2 BankLoans
Bankloanis oneof lhe financsourceswhichOxycheck
willuse.Oxycheck
will
take!20,000fromHSBCbusiness
loanpackage
withagreedinterastrateof
'10,4yo.
Thispackageis a smallbusiness
loanandth6detailsofthe loanare
u:
explained
as following
SmallBuslnos8Loans
l,000to e4,999
5,000
to e14,999
815.000
to 25.000

AIR%
1 0 . 9- 1 7 . 9
7 . 9- 1 4 . 9
6 . 9- 1 3 . 9

14.3Overdraft"
Manycompanios
havetheneedexternal
financein termsof tinanceto secure
thecompany
in short-lerm
butnotnecesssrily
ona long-torm
basis.A company
mighthavesmallcashflo problems
fromtimeto timebutsuchprobtems
don,t
callior theneedfora formallong-term
loan.Undsrthesecircumstances,
a
company
willofiengoto itsbankandanangeanoverdrafr.

Online6dlrc6 - httpsJtu/ww.h3bc.co.utd1plbrrsiness/filanc+bofiowino/bi]sinessloan:Jsesslond-0000LHZcstrnTGb0t6E3bbcv041
q.i 2ntf16at
25, Onlihesourc- hltp//M-bEed.co.uMearn/acc.untinsffnan.ial&urces/overdranJis

43

14.4 Gnnts
Grantscanbean atractiveaspectof a company's
financing
struc{ure.
lf a
companyhasa spcmc
issuelhal it wanlsor needsto dealwiththenil couldfind
thattherearegrantsavailable
fromlocalcouncits
andotherbodiesthatwillhelD
to payfor il%.
14.5 VentureCapnal
VentureCapitalhasbecomgoneof important
sourceof financemarketovsrme
last10to 15years.VentureCapitalcanbedfinedas capitalcontributed
at an
earlystagein thedevelopmant
of a n6wenterprise,
whichmayhavea significant
chancof failurebutalsoa significant
chancoof providing
aboveaverageraturns
andespcially
wheretheprovider
of thecapitalexpectsto hav6someinfluence
rT.
overthediGctionof theenterprise.
VentureCapitalcnbea highriskstrategy
14,8 Bu3ine$ angelflnanca
An angelinvsstoror angel(knownas a business
angelin Europe),
is anafflunt
individual
whoprovides
capitalfor a businsssslarl-up,usuallyin exchange
for
convertible
debtor ownership
equity.A smallbutincreasing
numberof ang6l
investors
organize
themselves
intoangelgroupsor angelnetworks
to share
research
andpooltheirinvestment
capital':3.

24. frlne Bourc

- htlpr 4r\,w.bized.co-uMsam/eccountingltinancial/sources/grents.htm
27. Onlhesource- htpl,\dwwbized,co.ul4eafit6c@ungnCffDanciaUsources/index,hh
28. Onfinesurce - httpr//en.wikipdia.orgnrvikj/Angeljnvestor

44

15. Cash Flow ForecastProjection

Tablebelowshowssummary
of closingbalance
for periodof fiveyears.
Year

Closinq Balance

-1,560.56
e130.82
e59,239.04
e100,973.26
5
e109.496.90
Table15.1:Closing
balance
summary
1

Graph15.2illustrates
thesummary
of closingbalancein periodof fiveyears.

Graph15.2:ClosingBalancegraph
In orderto reachthebreakevenpoint,themmpanywillrequireselling262units
permonthin yeartwo.

45

!|dlr.r

roflmcoaia
v|rLlC.aFrurr
la|.o?lbar.llnl

F.

(ufi)r

IFC.
\U t
aPu.

!,lo

Arr-Evrt M

F.l. al7lll4

hrrral
EP (ur) r IFC'(SPUVCU)
ECP{el) ' 8P(u{.) r sPU

l|.

cash Flow Forecaslfor Orycheck

Flnancialyear comencinglrom April2008
UnltoltEu6s $. in UK.lerlr.q {E)
n 3 1 ,3 3

'14,741.6
0.00

0,00

Inlrlalco3rln
le. Fent (lncl. Feoakrnd Mel

0,00
85.00
37.50

ComDon6nl.
and iral.rl.l.
S.l.rl..

(lncl, PAYE/N

4 ,4 1 0 .0 0

0,00
5, 159. s
97,80

Ulllhv Blll. (El.clrlc

15. 41

106. 67
525,40
0.00
424,49
0.00

TotalExpendltur
-274.25

YasharKh8tlb Sh6hldl

hnovatlon ahd Enterpdse

Total
,560.10

0.00

0_00
0,00
1

.42

-703.02

14,741.67 14. 7 4 1 .6 7 14,741.67

0.00
0,00
0.00
0,00
0,00
0.00
0,00
0.00
0.00

445,94

000
0.00
0.00

14,324.49 14. 18 1 .5 7 14.038,65 13,69s.72

0.00
0.00
0.00
0.00
0.00
0.00
0,00
0,00
85.00
85,00
85,00
85.00
37_50
37,50
37.50
37.50
4 10 ,0 0 8, 410. 00 8,410,00 8 ,4 1 0 ,0 0
0,00
0,00
0.00
0.00
5, 159 .5 6 5 ,159. 58 5, 15 0 ,5 8 5.159,54
0,00
0,00
0.00
0.00
E7.84
s7.80
97,80
97,80
1 8. 3 3
1 8, 33
18.33
r8.33
'15.42
1 5, 42
15.42
15,42
0,00
0,00
0.00
10,67
106. 67
106,67
1 0 6 .6 7
525,40
525,40
525.40
525.40
0o
0,00
0.00
0,00
424,49
428,89
428.89
428.89
0,00
0.00
0,00
0.00
59

i4,86:t.59

-560.10

14,864,59

0.00
0,00
85.00
37,50
8 ,4 1 0
o0
000
5 .1 5 9 ,5 8
0,00
97.60
1 8 .3 3
15,42
0.00
1 0 6 ,6 7
525.40
0,00

n,13t.79

14,741,67
0.00

0.00
0.00

14,741_67'14.741,67
0.00
0,00
0.00
0.00
0.00
0,00

13.752,80

13,609.66

0.00
0.00
6500
37.50
8,410,00
0,00
5,r59.58
0.00
97,80
18.33
'15,42

0,00
0,00

85.00
37,50
8,410,00
0,00
5,159.58
0,00
97,80
18,33
15.42

0.00

0.00

106,67
525.40
0.00

428.89

428,89

0,00

0.00

106,67
525,40
0.00
428.89
0,00

14J44.59

14,34,59

t4.t3't,50

0.00
0.00
0.00

176.S00,00
0.00
20,000.00
0,00

13.466.95 13.324.03 195.392,30

0,00
0,00

0.00
0,00
0,00
0.00
85.00
85.00
1,020,00
37.50
37.50
450,00
8,410.00 8,410,00 100,920.00
0.00
0.00
0.00
5,159,58 5,159,58 61,915.00
0,00
0.00
0.00
97.60
s7,80
1,173.60
18,33
18.33
219.96
15,42
15,42
185.04
0.00
o,0o
25,321,00
106,67
106.67
1,804,52
525.40
525,40
5.304,76
0,00
o.0o
0.00
428.89
428.89
5 146,68
0,00
0.00
0,00
14,364.5t1

n,131.79

1'1,864,59
,1,56056

4V

204,.|60,56

Cash Flow Forecastfor Oxvcheck

Year2
Unit ol fguc..re

Flnancialyearcomencinglrom April2009
in U( cl.rllng (f)

0.00
0.00
0.00
Toralcashav.lhble
lnltlalcoEtln
, FpakandMe

Slllrls ilncl. PAYE/NI

andSottwa.r
Hardwaro

140.00
125.00
120.00
30.00
18,270.0
.00
5,284.
32.00
80.30
18.33
105. 41

0.00

114. 16
141. 39

62.16
428.89

.69

CloalnqBalrnc6

YasharKhalib Shahldi

340,33

Innovationand Ente$ se
Tolal
1 ,193, 21 -1,0,16.10 398,98

-751.37

.604.75

457,64

-310,52

-163,41

n6,29

32,025.0032,025.0032.025.0032,425.00 32025.00 32,02s.0032.025.0032,025.0032,025.0032,025.00 384,300.00

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
684.67

30,631.79 30.978.90 31.126.0231,273.1331,420.25 31,567.36 31.714.48 31.861.59 32.008.71 374,468.87

140.00 140.00 1,680.00

140.00 140.00
140.00 140.00 140.00
140.00 14000
140.00
125.00 125.00 125.00
125.00 125.00 1,500.00
125.00 125.00 125.00 125.00
125.00
120.00
120.00 1,440.00
120.00 r20.00 120.00
120.00
120.00 120.00 120.00 120.00
30.00
30.00
30.00
30.00
30.00
30.00
30.00
360.00
30.00
30.00
30.00
18,270,0018,270.0018,270.0018,270.0018,270.4O 18,270.001A,27A.OA18.270.0018.270.0014.270.00219.240.00
4,485.00 4,485.00 4,485.00 4 485.00 .1,485.00 4,485.00 4.485.00 4,485.00 4,485.00 53,820.00
5,284.1e 5,284.13 63,409.50
5,2U.1 5.284.13 5 .2 8 4 .1 3 5 ,2 8 4 .1 3 5,284.13 5,284.13 5.284.1
5,244.1
32.00
32.00
32.00
32.00
32.00
32.00
32.00
384.00
32.00
32.00
32.00
80.30
80.30
80.30
80.30
80.30
93.60
80.30
80.30
80.30
80.30
80.30
18.33
18.33
18.33
219. 96
18.33
18.33
18.33
18.33
18.33
18.33
18.33
10s.41 r05.41 1.264.92
1 0 5 .4 1
1 0 5 .4 1
1 05.41
105.41
105.41
1 0 5. 41
105. 4 1
1 05. 41
0.00
0.00
0.00
0.00
0.00
74.00
0.00
0.00
0.00
0.00
0.00
1 14.16
114.16
114.16
114.16
114.16
1.369. 92
1 1 4 .1 6
1 1 4 .1 6
1 14. 16
r 14.16 114. 1 6
13,696. 62
1 . 141 .3 9 1 ,1 41. 39 1. 141 .3 9 1 ,1 4 1 .3 9 1 ,1 4 1 .3 9 1.141.39 1.141.39 1,141.39 1,141.39 1 14139
62.16
62.16
745.92
6 2 .1 6
62.16
62.15
62.16
6 2. 16
62.16
62.16
62.16
428.89
42889
428.89
428.89
428.89
428.89
428.89
5.146.58
428.49
428.89
428.89
441

1 ,4 41. 13 1. 441 .1 3 1 ,4 4 1 .1 3 1 ,4 4 1 .1 3 1 . 441.13 1,441.13 1,441.13 1,44113

1441.13

17,293. 50

3i.a77.ag 31,62t,69 91,877,89 31.877,60 3 1 ,4 t,8 S 51.877.09 31,8?7.89 31,877,89 31.8?7.89 31.677,89 382,608.62
n , 193.2 1 -1,046.10

.698,98

-7 4 1 ,4 7

404.75

.457.64

.310.52

-163,41

' 16,29

4t

134,e2

Cash Flow Forecastfor Oxycheck

Year3

Financialyearcomencinglrom April 2010

Unirol flguresarsIn UKsterllng(f)

74,216.67

0.00
0.00
0.00
205.3
lnhlalColln
Fenll l ncl .B soal r.ndM.

140.00
125.00
148. 00

340.0
NCI,PAYFJNI

4 966.67

32.00
48.06
20.00

Ulllltv Blllr

16. 67

0.00
120.00
62. 15
428.89

CloslnqBalance

Ya6harKhatlbShahldl

lnnovalionand Enterprise
Jul-l0
14.852.38 19,704,23 24,716,04 29,U7,93 34,579,74

i,s11.63 44,443,49 49,375.34

74,216.67 74.216.67 74,216.67 74,216.67 74,216.67 74,216.67

0.00
000
0.00
0.00
0.00
000
000

0.00
0.00

0.00
0.00

0.00
0.00

0.00

0.00

0.00

000

0.00
000

000
000

s4.307,19

74,216.67 74,216.67 74.216.67 890,60000

0.00
0.00
0.00
0.00

0.00
0.00

0.00
0.00

0.00
0.00

0.00
0.00

1 28.523.861.216.856. 05
137.1 9 89,069.04 9{,000.E9 98,932.75 103,86460 108.796.451t.728.30
118.660.15123,592.00

140.00
125.00

1.10.00
125.00

140.00
125.00

140.00
125.00

14000

1 48. 00
9 . 17

148.00

148.00

148.00

1 4 80 0

12500

140Cro
125o0
r 48.Cro

4000
2500
4.00

140.00
125.00
148.00

140.00
125.00
148.00

140.00
125.00

1.680.00
1,500.00

148.00

1,776.00

110. 04
917
9.17
9.17
9.17
9 .1 7
Li7
917
9.17
42,340.0042,340.0042.340.0042.340.0042,340
00 42.340
00 4.340.0042.340.0042,340.0042,340.00 508,080.00
4.9667
. 6 7 4,96.67 4,966.67 4,966.67 4 .6 6 7
66.67 4,966.67 4,966.67 4,966.67 59.60004
00
14.843.3! 14,843.33 14,843.33 14,84333 14.843.33 4 843.33 14.843.33 14.843.3! 14,8.33 178,120
384.00
32.00
32.00
32.00
32.00
32.00
32.00
32.00
32 00
3200
32.00
48.0
48 06
48 06
48.06
48.06
48.06
48.06
48.00
48.06
48.06
20.00
240.00
20.00
20.00
20.00
20.00
20.00
2 0@
20 00
20.00
20.00
200.04
1 6 ,6 7
1 667
16.67
16.67
16.67
16.67
16.67
15.67
1 .6 7
16.67
74.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
000
000
0.00
120@
120.00 120.00
120.00
120.00 120.00
r2000 120.00 120.00 120.00 1,440.00
2
11
2 ,645. 11 2. 645 .1 1 2,645.11 2.645
1r
2 ,6/511 i 645.11 2,645.11 2.64ti.11 2.645.11 31.741.34
745.92
6 216
62.16
62.16
62.16
62.16
62.16
62.16
6 2 .1 6
5.146 . 68
428.89
428.89
428 89
r28.69
424.49
428.89
428.89
428.89
428.89
428.89
3
75
3,339.75 3,339.75 3.339.75 3,33975 3.33975 :33975 3,339.75 3,339.75 3,339.75 40.077.00
244.42

69,244.82 69,244,42 49,244,62 69.284.82

14,852.38 10,744,23 24,716,6

2e,647,93 34,579.73

59.244.42
3 9 5l l 63

0,23:1.82 69,284.62

69,264.82 6t,284,42 831,491. 78

40,375,34 54,307.19 59,239,0,t

49

Innovationand Enlerprise

14.852.38 19.744,23 24,7i6,08 29,647.93

34,579.74

33,511.63

49,375.34

54,307,i9

74,21667 74.216.67 74,216.67 74,216.67 74,216.67 74,216.67 74,214.67 74,216.67 74,216.67 74,216,67 890,600.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
000
0.00
0_00
0.00
0.00

1 18,660.t5
123,592,00
1 28.523.861.216.65.05
1 37.1 9 E9.069.04 94.000.89 94.932.75 103,664.6010E,796,45113,728.30

140.00
125.00

140.00
125.00

140.00
125.00

140.00
125.00

140.00
125.00

140.00
125.00

140.00
125.00
148.00

140.00
125.00
148.00

140.00
125.00

140.00
125.00
1.1800

1,680.00
1.500.00

32.00
48.06
20.00

32.00

32.00

48.06

48.06

32.00
48.06
20.00

68,264,62

69,284.82

69,284.82

6s,29r.82 69,284,82 831,4 91. 78

49,375.34

s4,307.19 53,239.04

148.00
148. 0 0
148.00
1 4 8 .0 0
148.00
1,77600
148.00
9 .1 7
9.17
9.17
9.17
9.17
9.17
110. 04
9 . 17
9. 17
9 .1 7
340.00 42,UO.AO 42,340.0042.340.0042.340.4O42.34000 42340.00 42.340.40 42.340.00 42,340.00 508.080.00
4,966.67 4.966.67 4,966.67 4,966.67 4,966.67 4,966.67 4.966.67 .1.966.67 4,966.67 4,966.67 59,600.04
33 14,843.33 14.843.33 14.843.33 14,843.33 14,843.33 r4.843.33 14.843.3314.843.3314.843.33178.120.00
1 48. 00
9 . 17

384.00
576.72
20.00
20.00
20.00
20.00
20.00
240.00
20.00
'16.67
1 6.67
16.67
16.67
16.67
16.67
200.04
1 6. 67
16. 6 7
1567
000
0.00
0.00
0.00
7400
0.00
0.00
0.00
0.00
0.00
120.00 120.00 120.00 120.00 1.44000
120.00
120.00
120.00
120.00 120.40
2 . 645 .1 1 2.6/15.11 2. 645 .1 1 2.645.11 2 ,6 4 5 .1 1 2,645.11 2,645.11 2,645.11 2,645.11 2 645.11 31,741.34
6 2 .1 6
62.16
62.16
62.16
52.16
62.16
745.92
62. 16
52.16
62.16
428.89
42S.89
428.89
428.89
428.89
428.89
5,14668
428.89
42a.A9 42889
428.89
3,339.75 3,339.75 3,339.75 3.339.75 40,077.00
3,339.75 3.339.75 3.339.75 3.339.75 3,33975
32.00
48.06

69,284,82

32.00
48.06
20.00

32.40

32.00

48.06

48.06

64,264,42 69,264,82

1 4, 85 2 ,3 819,744_23 24,716.06

69.284,82

32.00
48.06
20.00
16.67
0.00
120.00

69,264.62

29,647,93 34,579,78 3 0,511.63

49

32.00
48.06

Cash Flow Forecasllor Oxycheck

Financialyarcomencingfrorh Aprll20l1
Unilorfgurc. arIn UK6terllng(E)

130,133
0.00
0.00
0.00

742.39
Prop ll Bnt(lncl.
{lncl. Apalrmd Mrlnlena

140.00
125.00
220.00
9.17
74,240.00

sal.rl.. (ncl. PAYE/N

8, 183. 50

32,533.
32.00
0.00
20.00
19.58
0.00

Ulllltv Blll!

141.67
62. 16

428.89
Tolel ExDndlturs

Ya3harKhatlbShahldl

Innovationand EnterDdse
Ju l- 1i

Total

133,08 69.617.10 73. 10 1 .1 1 76.545.13

80,069,15 83,553.17 87,037,19 90,521.21 s4,oo5,22 97,489.24

133.33130.133.33
130.133
33 130.133.33
130,133.33
1 30,133.33
130,133.33
130,133.33
130,133.33
130,133.33
1,561 , 600. 00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
96.256.41 't99,750.43
203.234.45206,718,47210,202.44213.566.50217.170.52220,654,54224.138.56227,622.5A2.501,599,69

140.00
125.00
220.40

140.00
125.00
220.O0

1.10.00
125.00
220_40

140.00
125.00
220.O0

140.00
125.00
220.44

140.00
125.00
220.00

140.00
125.00
220.4O
9.17

140.00
125.40

140.00
125.00

140.00
125.00
220.4O

1,680.00
1,500.00
2 640.00

220.40
22A.OO
9. 17
9 .1 7
9 .1 7
9.17
9.17
9.17
9.17
110 . 04
7
00 74,240.@ 74.240.40 74.240.0074,240
00 74.240.0474.240.0O 74,240.4O 74,240
00 74,240.40 890.880.00
8 , 183.5 0 8,183.50 8, 183.5 0 8,183.50 8,183.50 8 ,183.50 8,183.50 8.183.50 8,183.50 8,183.50 98,202.00
9 . 17

32.533.3332.533.3332.533.3i 32,533.3332,533.3332.533.3! 32,533.3! 32,533.3332.533.3t390400.00

32.40
32.00
32.00
32.00
32.00
32.00
32.00
32.00
32.00
384.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
20.4o
20.00
20.00
20.00
20.00
20.00
20.00
20.00
20.00
240.04
19.58
19. 5 8
1 9 .5 8
1 9 .5 8
19.58
19.58
19.58
19.58
19.58
234.96
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
74.00
'141.67
' t4 l .6 7
1 41. 67
141.e7
141. 6 7
141.67
141.67
141.67
141.67
141.67
1,700.04
4,638.01 4,638.01 4,638.01 4,638.01 4.638.01 4,638.01 4,638.01 4.638.01 4,638.01 4,638.01 55 65 6. 14
6 2. 16
62.16
62.16
6 2 .1 6
6 2 .1 6
6 2.16
52.16
62.16
62.16
62.16
42889
426.69
424.49
428.89
424.89
428.89
428.89
428.89
428.89
428.89
5.146. 68
5,856.00 5,856.00 5,856.00 s,856.00
5,856.00 5,856.00 5,856.00 5.856.00 5,856.00 74,272.00
32.00
0.00
20.00
19.58
0.00

126,449,32 126.649,42 126,549,32126,649.32126,649,32126,649.32126,649.32126,640,32i26.649.32 1.51986578

6 9 , 6 1 7. 10 7 3 ,101. r 1

80,069.15

83,553,17 87,037,19 90,521,21 94,005.22 s7,4e924

100,973
26

CashFIow Forecastlor Oxycheck

Financialyearcomencingfrom April 20'12
lnitial lnve6tmenl

uK storllng(E)

0.00
0_00
0.00

lnltlal c06li
crtlla Bent(lncl. Bspalrlnd l{t

Componlnts !nd Mtt.rl.l.

s!larlc. (lncl. PAYE/Nl
Olf.ctor. Sala

andsollwar.
comDutorHardwars
u{ tv Blllr (El

426.00
208.00
260.00

9. 17
88. 160. 0
12,779.00

32.00
39.73
20.00
19. 58

0.00

'149.17
5,507.64
189. 11
428.E9

8,954.00
Tolal ExDendllur
CloslnoBalanca

Y$har KhatlbShahldl

5.62

Innovalionand Enterprise
Junn2

Jul- 12

Total

102,316,09103,033,81103,751.52 104.459.23 105.136.94 1tts.904.65106,622.36 i07.3,q,.08 108,057.79108,7/5.50

s4.533.33t54 533.33 154.533.33154.533.33i54,533.33 154,533.331 54,533.33154.533.33154,533

33 154533.33 1.454.400.00
0_00
0.00
0.00
0.00
0_00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0_00
0.00
0.00
259.720.27260.437.99261.1s5.70
261.873.41262,591.12263.306.833,11 2. 429. 60
257,567,14256,284.8525E.002.56

25
426.00
208.00
260.00

426.00
208.00
260.00

426.00
208.00
260.00

426.C4

426.4O

426.OO

42A.OO

426.00

426.00

208.00
260.00

208.00
260.00

208.00
260.00

208.00
260.00

208.00
260.00

204.00

9 . 17

9 . 17

9. 17

9 .1 7

9 .1 7

9.17

9.17

g.l 7

5,112. 00

260.00

426.00
208.00
260.00

9.17

9.17

110. 04

2.496.00
3.120.00

160.00 88,160.00 88, 16 0 .0 0 88.160.00 88.160.00 8 8 .160.00 88.160.00 88.160.00 88,160.00 88,160.00 1,057,92000
12.779.00 12.779.0O 12,779.0O '12.779.@ 12,779.4A 12.779.00 12.779.0O 12,77e.04 12,779.40 12.779.04 153.348.00
33 38,633.33 38,633.33 38,633.333E.33.3!463.600.00
38.633.33 38.633.3i 38.633.33 38,633.33 38.633.3338,633
32.00
32.0O
32.00
32.00
32.00
32.00
32.00
32.00
32.00
32.00
s84.00
3e.73
39.73
39.73
39.73
39.73
39.73
39.73
39.73
3.73
39.73
474.76
20.00
20.00
20.00
20.00
20.00
20.00
20.00
20.00
20.00
20.00
240.00
19. 58

1 9. 58

19. 5 8

1 9 .5 8

1 9 .5 8

19.58

19.58

19.58

19.56

19.58

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

74,00

'149.17
5.507.64
189. 1 1
424.49
6.954.00

1 4 9 .1 7
5,547.44
1 8 9 .1 1
42E.E9
6.954.00

1 4 9 .1 7
5.507.64
1 8 9 .1 1
42EE9
6,954.00

149.17
5,507.64
189.11
42A.89
6.954.00

149.17
5,507.64
189.11
12A .89
6.954.00

149.17
5,507.44
189.11
429.49
6,954.00

'119.17
5,507.64
189.11
428.89
6,954.00

149.17
5.507.64
189.11

1, 79004

66.09r.6
2.269.32

425.20
6 954.00

5,142. 8S
83,448.00

'149.17
5.s07.64 5.507.64
1 8 9. 11
1 89. 1 1
424.89
428.89
0,954.00 6.954.00
1 49. 1 7

253.55

153,615.62153,815,62153,815.62153.016,62t53,815,62 153.815,62153.415.62153,416,62153,8r5,62t5t.41t,93 1.845.876.36

81

103,751.52104,469.23 i05,188.94 105,904.55 106,622

35

107,3110
03

r08,057.79 10e,775,50109,406,90

5l

L
I

t
L

Appendix

LoanCalcul{or
LodnAmdnl
Anrud tnsest Rat

t20.0@_0c
5

l@n Pdiod in Y@6

Numberof PaFnab P6rY*r

S_bnOat6of Loan
Ortio.al E (ha Pavrnnt!
L.id.r

|{.m:

ScheduledP.yment
ScndulslNuhbrol Paym.nls
]|tud Numb.rof Payndts
TotalEenyPayheots
TotattnteBi

01t04/2006

IHSBC g.nk

e428.0t
60
60
0.00
t5,73327

a.ghnlne
1
2
3
5
6
I
10
11
13
15
16
'17
16
19
20
21
24
25
2A
2T
2A
2E
30
3t
32
33
34
38
37
38
39
42
43
45
46
4a
49
5l)
52
53
64
55
56
5A
59
60

ol/o6t2{0a
0,1/G/2008
01to7l?0@
01rca|loo6
01DS/200e
0trio20G8
ot/ltazlo

olnuxw
o1n1t2loo
ol1q,t2o0o
0'rollzuog
oltwru
0r05t?0@
0r/u20@
AMDW
01/!8/2009
0lltBa2o@
oll9tw
01t11t2fi9
01A2t2@g
01/0tt2010
01Mno10
01109/?010
0lparz'l0
0l/06/z10
01/o6tu10
01/072010
0t/08/2010
01/oor20to
txfl0r20t0
0tfit/2010
0u12m10
o1n,|t 11
o1@m11
ollo?t?'11
olMta11
0ro5r2o11
01t8no11
01B7t8l1
0110620|l
0t/@t20r1
01t10t2o11
o.'/11/2011
uA2ta11
01n1m12
oltvt6r2
0t/!0t2012
01/0azo'12
01to5t&12
0?06/2012
01Efta12
01^'Bno12
01x,ofn12
01n0t4t12
otA1I2Itl2
01t12t)o12
t'10t,2013
0tiD/20t4
01nEAA13
01nat413

e20,000.00
19,74,1.15
r9,406.A
19,223.67
'16,9a1.42
18,69e_8S
18,433_!
18,13.s|
17,8a2.8
17,18_64
17,U2!5
17,063.E0
16,782.6G
16,490.42
16,213.53
16,r25.10
15,634.2Q
15,34090
'15,044.97
14,f!..17
14,4:16.38
14,141.09
13,835.36
13,52E.30
13,214.72
12,900.34
12,583.28
12,261.4
11,e44.4
11,415-44
11,207_2
10,956.r5

10,ezz
10,285_a0
9,945.64
9,602.a5
s,267.25
I,S08.63
8,550.95
4,202.2
7,444.12
7,443.52
7,119.&
6,381,90
6,008_35
5,631.54
5,251-,16
4,868.00
4,41.38
4,OS1.ia
3697.91
3,301.07
2 900.79
2,49f-U
2,089.79
1,679.02
1,264.64
446.75
425.8

Eftding

!424_89
42A.AE
424.89
428.89
428.89
428_09
428.89
42E.89
Qe.8g
42s.89

aa.u

&a.aE
a2a.8s
424.S
&.aE
120.4E
428.S9
1N.8e
426.&
42.69
42E.60
azB.89
1126.89
42E.6e
42A.AE
48.aA
426.68
420.49
44.AE
424.89
428.89
1?!,49
/128.89
{28.89
428.89
:r28.89
428.89
4?'.@
4?3,4e
428,aS

aza.8s

2t28.89
,i28.89
:t28.lE
12A.69
12A.Ag
428.49
428.49
126.49
42d8S
42439
426.S9
424.89
,126.S9
!?8.89
42!.A9
424_89
424_@
424.&9
42e.89

.:.*

e428.9
424.@
428.49
428.8S
428.A5
428.89
428.89
426.4e
424_89
428.89
12A.AS
/t28-89
420_89
428_49
428,40
12e.W
120.A5
12A,aS
42A.Ag
428.E9
428.8e
428.89
,r28.09
428.09
428.89
424.89
428.t0
428.8e
1A.OE
428.89
428.9
@.49
428.8e
428,89
.2a.@
428.89
42_40
426.@
428.80
4?6.69
428.0
12A.AS
,126.80
424.89
426.40
424.&
428.S9
428.89
t24.e9
428 8g
428S9
124_89
428.89
428.89
aa.a9
42A.89
429.89
424.89
4B.AS
425_20

t255.55
257,7?
260.00
262.28
264,53
266.62
260.13
271.47
273.52
276,19
278.59
281.00
281.4
285.g
288.37
290.47
293.3E
295.93
288.50
301.09
303.9
90! 33
308.08
31166
3r4.36
317.08
310.43
32,40
325.40
326.?2
331,07
333,93
336.83
330.75
342,69
345.60
348.66
351.8
354.73
357.80
30.90
34.03
37.19
370.37
37358
376.82
30.08
383.34
380.70
3S0.05
393.43
396.84
400.28
403.75
407.25
4to.76
417.93
421_56
421.52

173,33
171.12
168.88
166.63
164.36
14207
150.75
157.42
155.07
152.60
150.30
147.89
145.45
143.00
140.42
18 02
135!0
132.95
130.39
127.80
126.19
122.8
119.91
117,23
114.53
111,80
109.06
1c628
103.49
r00.67
7.82
94.95
s2,04
89,14
@,24
83.23
80.23
f1.21
7416
71.0e
67 S6
64.86
61.70
5t.52
55.31
52.07
48,81
45.51
42.19
38.84
3546
28.61
25.14
21.64
18.11
14.55
10.96
T.U
3.69

t19,744.45
19,48it.68
19,22A.O7
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18,433.06
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12,563.24
12,233.44
11,040.81
11,415.14
11,287.22
10,e5.15
10,e22.2
'r0,285.39
8,945.64
9.02.95
4,257.2E
8908.63
8,55.95
8,2U1.2
7,A4!..42
7,483.52
7,119.49
6,752.30
,i41.93
6,008_35
5,631.54
5,251.40
4,88.0
4 481. 38
4,0e1.33
3 697.91
3,301.07
2,900.79
2,497.U
2,089.79
1,679.t2
1,264.64
844.75
425.20
0_00

t-

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5+