xxx Business Review

Thursday, February 12, 2015

To: xxx From: Awais Anwar (Finance)

& xxx

List Of Content

# Description
1 Back Ground:
2 Non Financial/Indirect Financial Implication
3 Direct Financial Implication
4 Recommendations
5 Annexures
6 A. Cash flow Summary
7 A 1. CAPEX Outflow
8 A 2. Operating Cash Inflow
9 A 3. Operating Cash Outflow
10 B. Monthly Cash flow Summary
11 C. xxxs Current Employees

Page 1 of 9
xxx Business Review
Thursday, February 12, 2015

To: xxx From: Awais Anwar (Finance)

& xxx

Back Ground:
1 This Exercise focuses on proposed business plan of xxx along with its Financial & Non Financial merits.
2 Current Setup is involved in following activities.
2.1 Movie Productions/Partnership
2.11 xxx xxx is 50% Production Partner for this movie.
2.12 xxx xxx will provide resources/equipment and investment will be done by other party.
2.13 xxx xxx will provide resources/equipment and investment will be done by other party.
2.2 xxx Facility Rental
2.3 Equipment Rental
2.31 xxx Contract is signed for amount of PRs 1.6 million out which PRs 0.4 million is received and around 25% work
is completed. Remaining amount is agreed to be given after delivery of work to client expected in 3 to 6
months.
2.32 xxx Contract negotiation are in process. Expected to be a contract worth PRs 3.5 m in 6 months.
2.4 Sound Mixing/Mastering Services
2.5 Event management of xxx
2.6 Commercials for xxx (TV)
2.7 xxx Student Thesis
3 Proposal requires xxx to setup a cinema facility along with purchase of sound mastering & Video Equipment. Management is considering this
facility under following boundaries.
3.1 Facility will be non commercial in legal form.
3.2 Facility will be used for multiple roles as listed below
3.21 xxx
3.22 xxx
3.23 xxx
3.24 xxx
3.25 xxx < Services to regulatory bodies/sensor board
3.26 xxx
4 A brief financial and non-financial appraisal of this case is provided below.

Review
NonofFinancial/Indirect
Sound Mastering Financial
Setup: Implication
A review for non financial implication of xxx, its segments and additional proposed investment in setup can also play a major role in decision
making. Specially if these facilities are going to influence xxx and xxx at large as an institution and their student enrolment. Areas highlighted in
background should influence the following.
1 Should effect student preferences for xxx as an institute of media/filming education since it will be competitive advantage for xxx's
market impression that will add value to xxx's current status in industry. Same goodwill enhancement is applicable for xxx at large
since xxx name will add value to xxx.
2 Should not only reduces entertainment/event cost of xxx relating students but can also provide a platform for xxx student for similar
events. However this will depend on facilities availability.
3 Can support any later plans for setting up of TV channels or similar ventures.
4 Can help in further development of media PR of organization.
5 Will provide a one stop solution to film makers across the industry that will increase synergy and will create business for all segments
of xxx.
6 Will Provide better facilities and technology for in house productions (i.e. for future projects like SKZ). This should reduces our
dependence on external expertise.

Direct Financial Implication

A high level cash flow for xxx is provided below. Kindly note that the setup will be non-commercial in nature. (For details see the annexure as
referred.)
Rs in Millions
Description Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20
Cash flow Summary Anx (A) (172.0) (81.1) 89.5 36.7 (2.0) 64.7 93.8
Annual ROI 50% 23% 17% 33% 37%

Discounted Actual
More than 6 5.68 years
Payback Period
years
NPV Rs 36.8 million
IRR/MIRR 25.5% 24.5%
Average ROI 17%

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xxx Business Review
Thursday, February 12, 2015

To: xxx From: Awais Anwar (Finance)

& xxx

Recommendations
1 Proposed setup appears to be almost viable financially. This statement is based on positive NP, a project IRR that is below our Cost of capital and
breakeven Average ROI. Breakeven for actual cash flow is around 6 years, however for discounted cash flow its no expected before 6 years from
2014 onwards. Non financially xxx and proposed plan can have huge impact on group.

2 However further due diligence to confirm accuracy of cash inflows is highly recommended. Specially initial investment and subsequent investment
in capitalized assets. Also please keep in mind that shown numbers are subject to various assumption including inflation and growth rate.

Annexures
A Cash flow Summary
Rs in Millions
Description Notes Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20 Jun-21
CAPEX Outflow
xxx (140.6) (7.0) (7.9) (8.8) (9.9) (11.1)
xxx (9.7) - - (10.4) - -
xxx (33.2) (2.5) (2.5) (23.4) (18.5) (3.5)
xxx (2.3) (0.1) (0.1) (0.9) (0.1) (0.1)
xxx (1.5) - - - - -
Total CAPEX Outflow Anx (A 1) (140.6) (46.7) (9.6) (10.5) (43.5) (28.5) (14.7)
Operating Cash Inflow
xxx - - 124.0 75.0 80.0 170.0 190.0
xxx Facility Rental - - - - - - -
xxx 0 0.4 7.0 11.6 12.7 18.6 25.6
xxx 1.0 5.3 5.8 6.4 7.0
xxx 0.6 3.0 3.3 3.6 4.0
xxx Filming Services 1 0.7 26.8 21.4 17.1 37.6 42.1
Income from shooting Services (commercial) 0 0.2 0.2 0.2 0.2 0.3 0.3
Total Operating Cash Inflow Anx (A 2) 1 1.3 159.5 116.4 119.1 236.5 269.0
Operating Cash Outflow
Movie Production (22.0) (25.0) (40.2) (45.0) (50.4) (112.9) (126.5)
Payroll (8.7) (8.7) (17.9) (20.0) (22.4) (25.1) (28.1)
Utilities (0.8) (0.9) (1.1) (2.8) (3.2) (3.5) (4.0)
Professional Trainings (1.0) (1.1) (1.3) (1.4) (1.6) (1.8) (2.0)
Total Operating Cash Outflow Anx (A 3) (32.5) (35.8) (60.4) (69.2) (77.6) (143.3) (160.5)
Total Operating Cash flow (31.4) (34.5) 99.1 47.2 41.6 93.2 108.5
Annual ROI -22% -18% 50% 23% 17% 33% 37%
Terminal Value 577.9
Net Expected Cash Flow (172.0) (81.1) 89.5 36.7 (2.0) 64.7 93.8 577.9
Cumulative Expected Cash flow (172.0) (253.1) (163.6) (126.9) (128.9) (64.2) 29.6 607.5
Discounted Actual
Payback More than 6
5.68 years
Period years
NPV Rs 36.8 million
IRR/MIRR 25.5% 24.5%
Average ROI 17%
Estimated Cost of Capital 22%
Estimated Annual Inflation Rate 12%
Terminal Growth Rate 20% < For Operational Cash flow
xxx

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xxx Business Review
Thursday, February 12, 2015

To: xxx From: Awais Anwar (Finance)

& xxx

A 1 CAPEX Outflow
Rs in Millions
Capital Maintenance rate 5% TV/Cost Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20 Jun-21
xxx
Speakers 33% (2.1) (2.3)
Amplifier 33% (1.4) (1.5)
Pro tools 33% (3.6) (3.8)
Acoustics 33% (1.9) (2.0)
Other 33% (0.7) (0.8)
Total xxx 33% (9.7) - - (10.4) - -
xxx
Arri Alexa Camera with full Rig + Director View
33% Finder (10.0) (10.7)
Lens of different ranges 33% (7.0) (2.5) (2.5) (7.5) (3.5) (3.5)
HaxaCopter 33% (0.1) (0.1)
Dido Light set 33% (0.5) (0.5)
Digital Clapper 33% (0.2) (0.2)
Kino Flow 33% (0.3) (0.3)
DSLR Monitor 33% (0.1) (0.1)
Cam Slider 33% (0.2) (0.2)
Follow Focus 33% (0.4) (0.4)
DSLR 70D, 600D & 650D For Soca 33% (0.3) (0.3)
5 D mark III For Soca 33% (0.9) (1.0)
Go Pro 33% (0.1) (0.1)
Crane (Gyb) 25% (5.0) (6.6)
Crane (Porta Gyb) 25% (0.8) (1.1)
RV Van 25% (1.0) (1.3)
Film Equipment Truck 25% (2.5) (3.3)
100 KV Generator 25% (1.0) (1.3)
60 KV Generator 25% (0.8) (1.1)
5 KV Generator 25% (0.3) (0.3)
Projector 33% (1.8) (1.9)
Total xxx (33.2) (2.5) (2.5) (23.4) (18.5) (3.5)
xxx
Civil Works (1.0) (0.1) (0.1) (0.1) (0.1) (0.06)
Seating cost for 30 seats 33% (0.3) (0.3)
Air Conditioning 33% (0.5) (0.5)
Furniture & Fixtures (30% of Civil work) (0.3) (0.01) (0.01) (0.01) (0.01) (0.02)
Interior (30% of Civil work) (0.3) (0.01) (0.01) (0.01) (0.01) (0.02)
Total xxx (2.3) (0.1) (0.1) (0.9) (0.1) (0.1)
xxx (2)
Grand Total (46.7) (2.6) (2.6) (34.7) (18.6) (3.6)

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xxx Business Review
Thursday, February 12, 2015

To: xxx From: Awais Anwar (Finance)

& xxx

A 2 Operating Cash Inflow

Rs in Millions
Growth Rate Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20 Jun-21
xxx
Number of Film/year 2.0 1.0 1.0 2.0 2.0
Net Income 62.0 75.0 80.0 85.0 95.0
Annual Revenue 124.0 75.0 80.0 170.0 190.0
Cash Flow 124.0 75.0 80.0 170.0 190.0
xxx 10%
Number of Film/year 2.0 3.0 3.0 4.0 5.0
Charge/Film (Rs Millions) 3.5 3.9 4.2 4.7 5.1
Annual Revenue 7.0 11.6 12.7 18.6 25.6
Cash Flow 0.4 0.4 7.0 11.6 12.7 18.6 25.6
xxx 10%
Number of shows per day 1 2 2 2 2
Seat Occupancy per show 25 25 25 25 25
Days per month 16 25 25 25 25
Fee Per student 200 350 385 424 466
Revenue/Year 1.0 5.3 5.8 6.4 7.0
Cash flow/Year 1.0 5.3 5.8 6.4 7.0
xxx 10%
Number of shows per day 1 2 2 2 2
Seats per show 25 25 25 25 25
Days per month 16 25 25 25 25
Per student 125 200 220 242 266
Revenue/Year 0.6 3.0 3.3 3.6 4.0
Cash flow/year 0.6 3.0 3.3 3.6 4.0
xxx & xxx
Financial impact is unknown, however it is expected to improve both financial and non financial position of proposed plan.

xxx Filming Services

Rental 27 21 17 38 42
Annual Revenue 26.8 21.4 17.1 37.6 42.1 -
Cash Flow 0.6 0.7 26.8 21.4 17.1 37.6 42.1 -

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xxx Business Review
Thursday, February 12, 2015

To: xxx From: Awais Anwar (Finance)

& xxx

A 3 Operating Cash Outflow

Rs in Millions
Growth Rate Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20 Jun-21
Movie Production 12%
Number of Film/year 0.5 0.5 1.0 1.0 1.0 2.0 2.0 -
SKZ (22.0) (25.0)
Future Ventures (40.2) (45.0) (50.4) (112.9) (126.5)
(22.0) (25.0) (40.2) (45.0) (50.4) (112.9) (126.5) -
Additional Payroll 12% Salary/Month
xxx
Sound Designer 1 50,000 (0.6) (0.7) (0.8) (0.8) (0.9)
Assistant Sound designer 1 23,000 (0.3) (0.3) (0.3) (0.4) (0.4)
xxx
Helper 1 12,000 (0.1) (0.2) (0.2) (0.2) (0.2)
Club Supervisor 1 15,000 (0.2) (0.2) (0.2) (0.3) (0.3)
xxx
Salesmen (2) 2 12,000 (0.3) (0.3) (0.4) (0.4) (0.5)
xxx Filming Services
Technicians (5) 5 25,000 (1.5) (1.7) (1.9) (2.1) (2.4)
Driver (6) 6 15,000 (1.1) (1.2) (1.4) (1.5) (1.7)
HR & Administration
Assistant Manager 1 Shared Resource - - - - -
Office Boys (3) 3 Shared Resource - - - - -
Marketing
Manager 1 150,000 (1.8) (2.0) (2.3) (2.5) (2.8)
Assistant Manager 1 50,000 (0.6) (0.7) (0.8) (0.8) (0.9)
Senior Executive 1 35,000 (0.4) (0.5) (0.5) (0.6) (0.7)
Procurement & Purchase
Assistant Manager 1 Shared Resource - - - - -
Executive 1 Shared Resource - - - - -
Accounts & Finance
Assistant Manager 1 50,000 (0.6) (0.7) (0.8) (0.8) (0.9)
Executive 2 25,000 (0.6) (0.7) (0.8) (0.8) (0.9)
Total Additional Payroll - (8.1) (9.1) (10.1) (11.4) (12.7)
Current Staff (8.7) (8.7) (9.8) (11.0) (12.3) (13.7) (15.4)
Total Payroll (8.7) (8.7) (17.9) (20.0) (22.4) (25.1) (28.1)
Utilities & Other Expenses 12%
Electricity & Gas (0.3) (0.7) (0.8) (0.8) (0.9)
Fuel (0.5) (0.8) (0.9) (1.0) (1.1)
Maintenance & operating expenses (0.3) (1.3) (1.5) (1.7) (1.9)
Total Utilities & Other Expenses (0.8) (0.9) (1.1) (2.8) (3.2) (3.5) (4.0)

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xxx Business Review
Thursday, February 12, 2015

To: xxx From: Awais Anwar (Finance)

& xxx
Annexures
B Monthly Cash flow Summary
Rs in Millions
2016
Description Notes Jun-14 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20 Jun-21
YTD
CAPEX Outflow
xxx (140.6) - (0.6) (0.6) (0.6) (0.6) (0.6) (0.6) (0.6) (0.6) (0.6) (0.6) (0.6) (0.6) (7.0) (7.9) (8.8) (9.9) (11.1)
xxx - (9.7) - - - - - - - - - - - - - - (10.4) - -
xxx - (33.2) (0.2) (0.2) (0.2) (0.2) (0.2) (0.2) (0.2) (0.2) (0.2) (0.2) (0.2) (0.2) (2.5) (2.5) (23.4) (18.5) (3.5)
xxx - (2.3) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.1) (0.1) (0.9) (0.1) (0.1)
xxx - (1.5) - - - - - - - - - - - - - - - - -
Total CAPEX Outflow Anx (A 1) (140.6) (46.7) (0.8) (0.8) (0.8) (0.8) (0.8) (0.8) (0.8) (0.8) (0.8) (0.8) (0.8) (0.8) (9.6) (10.5) (43.5) (28.5) (14.7)
Operating Cash Inflow
xxx - - 10.3 10.3 10.3 10.3 10.3 10.3 10.3 10.3 10.3 10.3 10.3 10.3 124.0 75.0 80.0 170.0 190.0
xxx Facility Rental - - - - - - - - - - - - - - - - - - -
xxx 0 0 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 7.0 11.6 12.7 18.6 25.6
xxx - - 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 1.0 5.3 5.8 6.4 7.0
xxx - - 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.6 3.0 3.3 3.6 4.0
xxx Filming Services 1 1 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 26.8 21.4 17.1 37.6 42.1
Income from shooting Services (commercial) 0 0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.2 0.2 0.2 0.3 0.3
Total Operating Cash Inflow Anx (A 2) 1 1 13.3 13.3 13.3 13.3 13.3 13.3 13.3 13.3 13.3 13.3 13.3 13.3 159.5 116.4 119.1 236.5 269.0
Operating Cash Outflow
Movie Production (22.0) (25.0) (3.3) (3.3) (3.3) (3.3) (3.3) (3.3) (3.3) (3.3) (3.3) (3.3) (3.3) (3.3) (40.2) (45.0) (50.4) (112.9) (126.5)
Payroll (8.7) (8.7) (1.5) (1.5) (1.5) (1.5) (1.5) (1.5) (1.5) (1.5) (1.5) (1.5) (1.5) (1.5) (17.9) (20.0) (22.4) (25.1) (28.1)
Utilities (0.8) (0.9) (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) (1.1) (2.8) (3.2) (3.5) (4.0)
Professional Trainings (1.0) (1.1) (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) (1.3) (1.4) (1.6) (1.8) (2.0)
Total Operating Cash Outflow Anx (A 3) (32.5) (35.8) (5.0) (5.0) (5.0) (5.0) (5.0) (5.0) (5.0) (5.0) (5.0) (5.0) (5.0) (5.0) (60.4) (69.2) (77.6) (143.3) (160.5)
Total Operating Cash flow (31.4) (34.5) 8.3 8.3 8.3 8.3 8.3 8.3 8.3 8.3 8.3 8.3 8.3 8.3 99.1 47.2 41.6 93.2 108.5
Annual ROI -22% -18% 53% 52% 52% 52% 52% 52% 51% 51% 51% 51% 51% 50% 48% 22% 16% 32% 36%
Terminal Value 577.9
Net Expected Cash Flow (172.0) (81.1) 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 89.5 36.7 (2.0) 64.7 93.8 577.9
Cumulative Expected Cash flow (172.0) (253.1) (245.7) (238.2) (230.8) (223.3) (215.8) (208.4) (200.9) (193.5) (186.0) (178.6) (171.1) (163.6) (163.6) (126.9) (128.9) (64.2) 29.6 607.5
Discounted Actual
More than 6
Payback Period 5.68 years
years
NPV Rs 36.8 million
IRR/MIRR 25.5% 24.5%
Average ROI 17%
Estimated Cost of Capital 22%
Estimated Annual Inflation Rate 12%
Terminal Growth Rate 20% < For Operational Cash flow
xxx

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. . .
xxx Payroll Review
Thursday, February 12, 2015

To: Awais
xxx Raouf (Chairman UOL) From: Awais Anwar (Finance)
& Nasir
xxx Mahmood (Pro Rector UOL)
Annexures
C xxxs Current Employees
# Name Dep Sub Dep Designation & Job Description Projects/Major Task Performed in last 12 months Salary

1 xxx JF MGT Head of JF 110,000

Directing all JF activities Sound business of Hijrat /Yalqar and Production of SKZ
Patron Music Society
Gyms management
2 xxx JF Script Script Supervisor/Assistant Director 35,000
Creative writing, Story boarding & shooting script. Assistant director on SKZ and current in ISB for Yalgar
Rackei, Dialogs & planning of shooting days.
Artist short listing & Auditions.
17 xxx Shared 30% Script Visualizer/Story board Artist 19,500
Assisting Script Supervisor in Story boarding & Drawings of shorts. Story Boarding of SKZ
3 xxx JF Music Music Department Supervisor 70,000
Music composing and music liabrary development. Background music of SKZ
Film & Event Background Scoring. Music work for Mr Ibad & Blue Orca
Music Society Supervision. Music work for 2 UOL Commercial
Assisting Mr Ibad Supervised around 10 student.
Assisting SOCA Students
Blue orca work
4 xxx JF Music Music Composer 30,000
Music arranger Background music of SKZ
Musician Music work for Mr Ibad & Blue Orca
Tuner Music work for 2 UOL Commercial
Assistant to Music Department Supervisor Supervised around 10 student.
5 xxx JF Rental Rental Coordinator & Production (Annexure D) 40,000
Supervising rentals of Film Audio Video Equipment Production of SKZ
Coordinating SOCA equipment use. Event Management (Annexure D)
Manage & planning all shoots Management Rental around rental orders
Budgeting, shooting & locations Schedule
6 xxx JF Rental Assistant Cameraman 12,000
Assisting Imran Tariq who handle the camera Fresh Recruit
7 xxx JF Sound Head of Sound 200,000
REF/Sound, Dubbing, sound effects, 5.1 sound design, mixing & mastering Sound work of Hijrat, SKZ & currently on Yalgaar
Mastering audio
Sound Designed
Working on Hijrat Film
8 xxx JF Sound Assistant Sound Engineer 18,000
Onset sound Recoding REF/Sound on set of SKZ & Currently on yalgaar
9 xxx JF Sound Assistant Sound Engineer 20,000
Assists Dixon for Sound Mixing and Mastering (currently working on Hijrat) REF/Sound on set of SKZ & Currently on yalgaar
10 xxx JF Events Senior Non Linear Editor 45,000
Data management of films and events Data management of SKZ
Video edit of all university events & outsource work as well. Events editor (Annexure D)

Page 8 of 9
. . .
xxx Payroll Review
Thursday, February 12, 2015

To: Awais
xxx Raouf (Chairman UOL) From: Awais Anwar (Finance)
& Nasir
xxx Mahmood (Pro Rector UOL)
Annexures
C xxxs Current Employees
# Name Dep Sub Dep Designation & Job Description Projects/Major Task Performed in last 12 months Salary
11 xxx JF Events Event Producer 35,000
Director of university events & outsourced video works. Production Events (Annexure D)
12 xxx JF Events Camera man 25,000
Rental Focus puller for films and camera handler during rentals (Red Camera) Focus puling for SKZ & events (annexure D)
13 xxx JF Events Camera man 25,000
Rental Camera assembly & lights arranger/lights maintenance Lighting & camera assembly for SKZ & events (annexure D)
16 xxx Shared 33% Events Electrician 3,960
Shared resource - Also works for Jehan Films
14 xxx JF Admin Runner 14,500
Required on shooting locations also works as technical staff.
15 xxx JF Admin Runner 14,500
Required on shooting locations also works as technical staff
16 xxx Shared 20% Admin Carpenter 4,000
17 xxx Shared 50% Admin Store In charge 7,500
18 xxx Shared 33% Admin Office Boy 2,970
19 xxx Shared 33% Admin Office Boy 2,970

Total 717,460

Other Employees currently in JF payroll in UMS

20 xxx Terminated Post Production Supervisor 100,000

21 xxx Terminated Film Editor 75,000
22 xxx Terminated Tailor 20,000
23 xxx Creative Village Senior Broadcast Engineer 70,000
24 xxx Creative Village Set Manufacturer 26,500
25 xxx Shared 33% Electrician 3,960
26 xxx Shared 80% Carpenter 20,000
27 xxx Shared 80% Store Incharge 15,000
28 xxx Shared 66% Office Boy 9,000
29 xxx Shared 66% Office Boy 9,000
30 xxx Shared 70% Visualizer/Story board Artist 45,500
Total 393,960

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