Running head: HEXANOIC TECH PUBLIC LIMITED 1

Hexanoic Tech Public Limited

Presented By:

Ansha Mansoor

Ayesha Hashim

Zeeshan Razzaq

Abdullah Bhatti

Presented To:

Wajahat Anwaar Bukhari

Subject: Professional Practices

Date: 16-02-2019

NATIONAL COLLEGE OF BUSINESS ADMINISTRATION &

ECONOMICS (NCBA&E)
 HEXANOIC TECH PUBLIC LIMITED 2

Introduction:

This report is about initializing a new software development public limited company. The report
starts with the overview of the company and covers the topics like constitution of a company, budget of
the company, the costs required for making a software company etc. This report describe how to budget a
company professionally and how to make constitution of the company. The report states what kind of
ethical rules should be followed in the company by employees, what could be the hierarchy of the
software development company and the functional units of a software company. It describes what will be
the objectives of the company as the vision and mission statements. The report describes the agreements
like Memorandum and Article of Association and shareholder’s Agreement.

Company overview

We found a company named as Hexanoic Tech. It is a public limited company. The company will
operate in the IT industry. Hexanoic Tech will try to provide high-quality services. We guarantee to
exceed the expectation of our customers. The primary products of our company are software, distribution,
software technologies, software product development, Web Development, and SEO. This is actually a
service providing company. We will provide the following services:

We will provide custom based software or bespoke software to our clients. This software will be
according to their demands and needs, and we will charge them according to what kind of product they
demand. We will provide monthly maintenance software. This software is used to track the maintenance
of equipment in various industries. Facility management or other purposes like aviation, manufacturing,
hotels etc. these are called Computerized Maintenance Management System.

According to the requirements of clients, we will develop and design custom websites. The
company will also develop the dynamic websites. Clients can have functionally rich, fully controlled and
fine-tuned, interactive websites. We will create and develop mobile apps for IOS and Android. After
combining with a polished design or UI/UX an application will become the best and will reach the goals
of customers. We will have skilled team of product specialists; the front-end and back-end designers UI
and UX designers, testers, product managers, marketers etc.

Freelancing has become a larger trend throughout this century. “A survey stated that in 2014 53
million of American peoples, means 34% of USA’s working force has been working with freelancer. 40%
of which declared that freelancing was only source of their revenue” (Gheorghe, 2015). We will work as a
freelancer on freelancing sites and enhance our business.
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Vision Statement:

Our vision is to be one of the best leading companies in the technical world that ensure its
customers to enhance their business growth with eye-catching design and quality Development. We have
three main principals: innovation, Transparency, and Agility; that is mainly to our staff-client interactions.
Mission Statement:

We want to use development investments and extensive research and strategic alliances to deliver
best to customers. We want to be a global leader in the technical world. Our mission is to develop an
approach and tools which will urge the computer world to adopt and help them to attain success.

Ethical Code of Conduct:

Allowed activities:

 you have to follow the following rules at the workplace:

1. The employee should come on time. And should be regular.
2. Moral ethics are the same for everyone and must be followed.
 The rules you have to follow during Customer Dealing are:
1. The employee should show interest only in the activities of the company’s interest.
2. They should engage activities in which their performance effects positively and in the
interest of the company, and increases their loyalty to the company and also affects their
working, responsibilities, and ability to perform positively.
3. The transaction between the company and the customer party must be submitted to the
finance department and audit committee for assessment.
4. Employees can only accept the work which the company can produce and deliver in
affective way. The respective person should not greed in accepting the projects which may
then prove unmanageable for the company.
 Set of rules when you see a violation of the code of conduct. Follow these rules to solve respective
Issues:
1. Any violation or suspected violation of the code of conduct must be reported to the
respective person of the company or by the company’s confidential reporting procedures.
2. When the code of conduct’s violation recorded. The company will take relevant action
against the responsible peoples. Employees are expected to cooperate in this situation so
that the company can find out the responsible people for the violation and stop them from
affecting the company’s progress.
 Promoting compliance with the law:
Employees are expected to act in lawful manners. They should follow laws in company-
related matters. Every employee must respect and fulfills all federal, local and state laws and the
regulations which specifically applies to our particular business. And also they have to follow all
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the current and future policies of the company, and with the rules that apply to general integrity,
loyalty and honesty standards.

Employees can consult to seek assistance in any law or policy of the company which is
unclear to them with the company’s legal departments. They will help them to understand and
follow the laws.

 Our code demands this Dress Code from employees:

1. The employees should follow our official dress code.
2. The one who frequently interacts with the client should be more formal in dress code.
3. Employees should be cleaned and avoid wearing unprofessional clothes.
 We allow only this type of Internet usage in our office:
The internet connection is necessary for our business. But Employees can very occasionally
use the net connection for their personal use as this should not interfere with their job duties.
1. Employees are allowed to use this connection for office work. For reading office emails and
other jobs related to their work.
2. Employees are allowed to interact with clients on the internet for the company’s work. To
take and deliver work.

Prohibited activities:

 The activities which create Conflict of interest are not allowed; as given below:
Avoid from engaging in the activities or to have a personal interest in the activities that
lead to the conflict of interest. When the person’s personal interest began to interfere with his
work. Then he starts to give priority to his personal interest instead of the company’s interest. For
example, if a responsive person employs the person of his family without his proper eligibility to
the work.
 Employees should follow these rules while using our Company’s property:
1. The employee can’t use the company’s property for his personal work or benefit. He should
use this property only for business purpose.
2. They should take care of the incorporeal property. Which includes copyright, trademarks,
and other information and reports. They can only use them to complete company duties.
3. The employees are strictly required to return all the company’s properties he has at the time of
employment when the company terminates.
 The employees have to take special care of the Confidentiality of the company:

1. The employee could not use the company’s confidential information as customer’s data or
information and financial records for the activities which are out of the company’s knowledge.
2. The confidential information can’t be disclosed without the authorization of confidentiality
policy by the company pursuant or allowed by law.
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3. This obligation of confidential information is extended beyond the company’s workplace. As it

applies not to communicate with your family members about the company personal
information or even after your employment era.
4. Employees are strictly prohibited from making print-outs of information related to
shareholders. This information may contain account numbers, transactions, account balances,
telephone numbers, and addresses etc.
 The employee is not allowed to use the Internet for this type of activities:
1. You can’t upload or download offensive or illegal material.
2. Download and upload private movies, songs or other that kind of stuff.
3. You can’t visit a website that is potentially dangerous or compromises to our network. You
can’t perform illegal actions like hacking, buying, selling illegal goods or frauds etc.

Implementation of the Ethical Code of Conduct:

We will set up a system called as HRM. This system will work under the HR of the company. The
company will assign tasks to the employee at the start of working time. The tasks would be assigned by
the experienced people who assure that tasks are easily manageable in the given time. At the end of the
day, tasks are checked by the system and points will be given according to the performance. At the end of
the month or annually the employees with greater points are awarded by financial or nonfinancial
rewards.
Provide a way to report any violation in a confidential way. We will include an ethical code of
conduct in corporate training programs. To monitor the effectiveness of code we will set up a board
committee. We will provide an ethical code of conduct on the company intranet so that all employees can
access it when needed. A printed version of the code is distributed to all employees so they can read it
carefully and understand properly. A commitment or contract containing all the essential rules of code is
given to the employees to sign it during employment. So they have to follow them during their job era.
We will use security cameras to monitor employee’s activities and to make sure that all the tasks are
completing accurately. We will make the code available in all the languages of overseas located staff so
that they can understand more easily and follow the code.
Constitution of Company:

Memorandum of Association:

I. The name of will be “Hexanoic Tech Public Limited Company”.

II. The registered head office will be in the province of Punjab at Multan in Pakistan. Branches of
office may be established in other cities of Pakistan as needed.
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III. Objects of the company:

To carry on the business of designing, developing, coding, decoding, creating, selling,

exporting, commissioning, servicing, consulting, executing, processing all kinds of computer
software systems, software, solutions, computer application software, software tools or gaming
products and all the products related to software or computer applications. To provide services like
advisory, consultancy but not only limited to computer application software or software tools but
also other software products and internet related services all kind of support services, training.
Freelancing on sites like freelancer, Fiverr, up work etc. Making customized websites according to
customer needs. Develop mobile applications.

To import, sell, purchase, distribute over the web or in data centers or deal with computer
software packages, solutions, and programs. On contracting basis, we will offer services on-site
offsite or using hired, owned or party infrastructure and equipment and HR related services
through development centers. Facility management or other purposes like Aviation,
manufacturing, hotels etc.

IV. The liability of the members is limited.

V. The company’s Authorized Share Capital is 1,470,000 Rs and the Nominal value of its shares
is 10.0 Rs.

VI. We, the four persons, whose names and addresses are subscribed below, are desirous of being
formed into a Company in pursuance of this Memorandum of Association and we respectively
agree to take the number of shares in the capital of the company set opposite our respective
names.

SI
No.
Names Address Number of shares:

1 House no D3 WAPDA Housing

Colony NGPS MULTAN.
Ansha Mansoor 153,000

2 Grass Mandi, Data Colony

Multan.
Ayesha Hashim 58,800
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3 House no10, X Block people’s

colony Khanewal.
Zeeshan Razzaq 44,100

4 House No.2596 street 6, Moh

Awais Abad Multan cant.
M. Abdullah Afzal 44,100

The article of Association:

As an invitation to purchase shares by the public a prospectus will be used. So the purchaser has to
apply in the form given in prospectus known as the application form. Allotment letter will be sent to the
applicant after the allotment of share. This will be an ‘offer’ which applying form will give and allotment
of shares by the directors will be the ‘acceptance’ of the offer. It should be cleared that allotment must be
done by the proper authority; Board of directors will allow the shares and any allotment other than that is
void.

If minimum contribution will not be obtained or the allotment could not be completed after the due
date from the date of prospectus publication the money will be returned back by the directors. Discount
will be not allowed in issuing the shares. The power of issuing share warrants to the bearers is not allowed
to the company.

Transfer of shares must follow these rules: To keep the records of shareholders or transfers, the company
will keep a book which will be called as “Register of transfers” and every transfer or transmission must be
fairly and distinctly entered in this register. On any violation of code or any decline of conditions, the
respective board or the director can decline the transfer of shares. Share transfer registration would not be
declined. Any person who become entitled or to transfer the share in condition of death, bankruptcy,
mental illness or by law operation of any member, so by producing such evidence that he assist the
character in whom respect he admits to act under the Article of Association, may with the agreement of
the board will be registered as a member in respect of such shares. The company will charge for the
transfer or transmission of the shares. The members must offer shares first to the existing shareholders if
they want to transfer them. File with registrar has to be submitted containing copies or the contract and
the return statement with the number and the nominal value of the share.

Meetings of members: The annual general meeting will be held in Multan or any other place that is
decided by managing committee once in a year may be in the month of July but not after the September
on the place or the date decided by the managing committee. General meetings will be called after giving
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notices if more than or equal to 95% of members vote for such meeting give agreement in writing or by
electronic mode. A special meeting may be called of the general body by the CEO or vice-chairman on his
own initiative, or by the managing committee or by the Secretary at least when one-third of
representatives state the reason for which the meeting is to be called. The chairman or vice-chairman in
his absence shall conduct the meeting of the association.

Appointment and removal of directors: Until determined in general meeting by the company and allowed
to the provision of act number of directors would not be allowed to appoint or remove. When the directors
enter to a contract as a person or persons, banks, institution, security or for any collaboration, borrowing
any money for providing some guarantee Directors will have the power to agree that the person has right
to appoint or nominate in writings of the company by a notice. Directors will be selected by the
shareholders and can be changed by the resolution in general meeting and 70% votes.

Shareholder’s Agreement:

The day to day decisions of the company will be made by the managing director and the
shareholders will not be involved. The decisions in areas under shareholder’s control are done by voting.
The decisions will be made by 75% of weightage. Directors will remove or appoint the directors with
70% weightage of votes in the annual meetings of shareholders. Shareholders cannot compete with
company when they are the shareholders of the company and for reasonable time after that era.

Employees are the most valuable asset of a company. The shareholder’s agreement restrict the
members that they cannot attack the employee personally or due to irrelevant prejudice. If a partner leaves
the company, his shares will be lawfully transfer to company at nominal value of the shares. The dividend
of the company will be equally divided to all the shareholders of the company. The shareholder’s
agreement can be changed by 75% of weightage of voting.

Functional Units:

Functional units of our organization are:

 HR: This department will lead and take care of all the tasks so that they could be completed on
time and effectively. Training, management and other some works comes under this department.

 Production: Our team comes under the production unit. The production team, software engineers,
team leaders, project managers are included in this field, those who complete the tasks or projects
of the company.
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 Finance and Management: In this field, the administration or finance department comes. Those
who take care of assets of the company and the revenue.

 Sales and Marketing: This department consists of those employees who advertise and sell the
products. Deal with the market and the customers, and get work for the company.

 Research and Analysis: This department staffed by computer scientists or engineers and tasked for
developing new products to enhance the business. They work to discover new and easier ways to
deliver the best and more efficient and comfortable.

Hierarchy:

Director

Project Manger Finance and Sales and HR

Management Marketing management

Team Leader Training Benefits Subject

matter

Finance vice-
Team Manager

Figure 1: Hierarchy of Hexanoic Tech Public Limited Company.

Geographical Organization:

The office of the company will be in Multan in the province of Punjab, Pakistan. We will work all
around the globe and deal with all the customers in Pakistan and outside of Pakistan using a medium like
an internet. We will take work from our customers and give them the best of expectations. Branches of
office may be established in other cities of Pakistan as needed.

Management Structure:

The structure of our company will be centralized. The project manager will be responsible for all the
production department, did the tasks completed? Are the company’s standards maintained? The team,
software engineers, developers all are under the project manager. Then the finance and management
department which deals with all the revenue and to make sure that the resources are available to carry out
the projects. He also has to take care of the pays of employees and the profit loss statements of the
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company. Then the Sales and Marketing department which is responsible for the external affairs of the
company the advertisement and the customer dealings, taking work from the customers for the company.
After that, it comes to the HR manager. The HR manager will be responsible for all employee issues or
requests. His responsibilities consist of benefits, hiring, firing, payrolls and keeping employee update with
state and federal tax laws. This department is an employee’s critical component for his well-being in
business and they all will work under one director.

Employee Motivation:

In past, the employees were just considered as another way of input in services and goods
production. The change in concept occurred by research, this study concluded that the employees were
not motivated and their behavior was linked to their attitudes (Lindner, 1998). So this is extremely needed
to motivate employees.

We will follow these activities to motivate our employees:

We will work in a friendly environment with our employees. As the employees spend a large and
quality time of their life in the office so we will try to make the office a comfortable and lovely place for
them. When the atmosphere of the office will more pleasant and friendly the employees will become more
willing to work and come to the office every day. The employer should speak with employees frequently.
The staff should know how much they value, and communication is the best way to show how much you
appreciate their hardworking.

The hard work employee has done, he wants to be recognized and appreciated for that,
nevertheless if the work was for the company or personal achievement. Appreciation of a job coming
from management means very precious to an employee. The rewards will be given to the employees by
the upper management. Financial rewards containing bonus, the increment in pays, promotions, medical
facilities, transport facilities etc. Non-financial rewards like an office party, recognition, family trip,
certificates etc.

We will give then short or weekly Goals to achieve. When the employees recognize that what the
incentives they have to achieve they will become more motivated. This will increase their commitment to
the employer in this way there will be a friendly competition to achieve the goals and employees will have
opportunities to learn more, they will get new skills. So we will encourage our employees to participate in
such competitions as they are healthy for their minds and companionship.
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We will be very transparent to our employees about what is happening on a higher level so in this
way they will have a chance to give feedback and ask questions. There will be no surprises and employees
will feel included in major decisions and have a chance to understand the company’s policies better. They
will remain more committed to the company and know the direction and objectives of the company. This
will increase their loyalty.

Facilities will be given to employees. We will provide medical facilities to the employees, we will
declare an annual fund for the medical of the employees. The transport facility will be given to the
employees. An annual family tour will be organized by the company for the employees with the best
performance as their appreciation. Along with these company will provide paid vacations to the
employees, they will vary along with the employee’s service in the company. The hours of vacation will
be built according to his hourly working.

Performance Appraisals:

We will use rating scales which consists of numerical scales which represent the performance of
employees related to the job. It will judge the abilities like the initiative of the employee, his attitude
towards work, output, dependability on others etc. every scale will range from poor to excellent. The
points will be calculated and final conclusions will be made on the basis or qualitative analysis. A
checklist of characteristics of employees in the form is made and distributed. This form consists of
statements with options as Yes or No. This form is evaluated by the HR department. By this, we will get
the idea that what type of mentality and minds our employees have and how we can manage them easily.

We will conduct an assessment test or performance test for the employees. They will be the tests
of skills and knowledge. These tests will give employees a chance to increase their skills and learn more
from each other. We will give our employees a form and will ask them to fill it with their achievement of
the past year, the goals they achieve and their role in the progress of the company. This form will first go
to the project leaders who evaluate it and conclude his team views then this form will be transferred to the
HR department, this department will check form deeply and evaluate the mentality and progress of their
employees then these results will be transferred to managing director.

Sources of Funding:

I will use Grants and Equity capital as the source of funding. I will take grants from my family of
1,030,000Rs. I also have savings of 500,000Rs. That I will invest in my business. Then I will offer my
shares to the public to increase the investment. The three investors Ayesha Hashim, Zeeshan Razzaq and
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M. Abdullah Afzal invest in my company by buying my shares of 588,000Rs, 441,000Rs, and 441,000Rs
respectively. Thus the equity capital of 1,470,000Rs. Will be added to my investment. These are the
sources of funding for the company.

Budget:

Expenses cost

Advance of Building 250,000 Rs.

Rent for building 100,000 Rs.

Renovation:
Fall ceiling 30,000 Rs.
Electricity Wiring and lighting 20,000 Rs.
Air Conditioners 360,000 Rs.
Fans 18,000 Rs.
Switchboards 5,000 Rs.

Total of Renovation: 433,000

Furniture:
Executive, visitors, meeting and Computer Chairs 60,000 Rs.
Computer tables and office table 62,000 Rs.
Meeting table 15,000 Rs.

Total of Furniture: 137,000

Workstation Computers 900,000 Rs.

Server Computer 150,000 Rs.
Laptop Computers 360,000 Rs.
Printers 48,000 Rs.
DSL installments 5,000 Rs.

Electricity Bill 30,000 Rs.

Employee Salaries 350,000 Rs.

Advertisement 100,000 Rs.
Marketing 60,000 Rs.

Total Expenses 2,923,000 Rs.

Costing:

As the software house doesn’t need any Raw material for its processing. Maybe some paid
software, plugins some paid compilers can be used as raw material in software building.
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The cost of equipment consists of computers cost. The equipment like printers, scanners, laptops,
modems, telephone installation etc. These all are included in equipment cost of our company.

Equipment Cost
Workstation Computers 900,000 Rs.
Server Computer 150,000 Rs.
Laptop Computers 360,000 Rs.
Printers 48,000 Rs.
DSL installments 5,000 Rs.
Total: 1,463,000
The cost of labor includes the salaries of the employees. The amount used for their rewards, or the
amount used, if the company runs some medical facility plans or pension plans, facilities like transport,
vacations will also be added to the cost of labor. Our total employees will be 15 in starting and then we
will increase them as needed, so the pay of 15 employees will be different according to their jobs and
designation. The average pay of employees will be 30,000 Rs. If the company will run some offers like
pension or transport, the cost of 20,000 Rs. will be added to the cost. For the 6 day week, the total
working days will be 312. If there are 20 national or religious holidays in the year and 8 public holidays
total days will be 284, so for the 1988 working hours in a year. The total cost of employing the employee
for per hour in one year will be 25.15 Rs.

Staff Total Labor Cost

Director 60,000 Rs.
Technical Staff 210,000 Rs.
Guards 30,000 Rs.
Helping staff 50,000 Rs.
Total: 350,000 Rs.
Overheads cost consists of the cost like sales, marketing, advertisement, facilities etc.

Overheads Cost
Sales 5,000 Rs.
Marketing 10,000 Rs.
Advertisement 100,000 Rs.
Facilities 30,000 Rs.
Total: 145,000 Rs.

Prices for Services:

We will provide fee-based services to our employees. So there could not be any pricing for that
because we cannot evaluate what type of projects will be assigned to us in the next years. The pricing will
be set according to the needs of the customer and the level of the project.
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Auditing Procedure:

We will appoint the professionals from outside the company for auditing procedure. Their
responsibility will be to check all the projects given to the company and all the projects delivered by the
company. They will compare the amounts of delivered and taken projects of the company. They will
check all the transaction of the company’s accounts to evaluate that if there is any fraudulent activities in
the company or not, but this is a primary responsibility of the auditor. The auditor will check the records
of the company and evaluate that the company is a going concern or not. Auditors will check whether the
standards and procedures are being followed or not. Then they provide their conclusions to the owners.

References:

Gheorghe, M. (2015). State of Freelancing in IT and Future Trends. World Academy of Science,
Engineering and Technology, International Journal of Social, Behavioral, Educational, Economic,
Business and Industrial Engineering, 9(5), 1474-1478.
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Lindner, J. R. (1998). Understanding employee motivation. Journal of extension, 36(3), 1-8.