ETRAQUE CAR TRACKING PROJECT

Income Statements (Rs)

Start Up

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

New Sales
Annual Monitoring Charges
Sub-Total

13,000,000
5,200,000
18,200,000

18,200,000
12,480,000
30,680,000

25,480,000
22,672,000
48,152,000

35,672,000
31,740,800
67,412,800

49,940,800
44,437,120
94,377,920

69,917,120
62,211,968
132,129,088

97,883,968
87,096,755
184,980,723

13
12
25

Cost of Sales
Equipment
Direct monitoring expenses
Sub-Total

3,900,000
3,900,000
7,800,000

5,569,200
9,360,000
14,929,200

7,952,818
17,004,000
24,956,818

11,356,624
23,805,600
35,162,224

16,217,258
33,327,840
49,545,098

23,158,245
46,658,976
69,817,221

33,069,974
65,322,566
98,392,540

4
9
13

General Administrative & Selling Expenses

Salaries
Utilities
Fuel
Depreciation of Vehicles
Computers/Servers, Printers
Google Charges
Stationery
General Maintenance
Office Space Rental
Sales & Marketing
Sub-Total

7,608,000
662,400
180,000
500,000
150,000
288,000
80,000
200,000
1,200,000
2,000,000
12,868,400

8,749,200
828,000
234,000
400,000
187,500
293,760
100,000
250,000
1,500,000
2,500,000
15,042,460

10,061,580
1,035,000
304,200
320,000
234,375
299,635
125,000
312,500
1,875,000
3,125,000
17,692,290

11,570,817
1,293,750
395,460
256,000
292,969
305,628
156,250
390,625
2,343,750
3,906,250
20,911,499

13,306,440
1,617,188
514,098
504,800
366,211
311,740
195,313
488,281
2,929,688
4,882,813
25,116,570

15,302,405
2,021,484
668,327
403,840
457,764
317,975
244,141
610,352
3,662,109
6,103,516
29,791,913

17,597,766
2,526,855
868,826
323,072
572,205
324,335
305,176
762,939
4,577,637
7,629,395
35,488,205

Net Operating Profit

-2,468,400

708,340

5,502,892

11,339,078

19,716,251

32,519,954

51,099,978

Revenues

Taxes
Net Profit (Loss) After Taxes
Cash Flows Implications

-8,735,000

IRR

-444,312

127,501

990,521

2,041,034

3,548,925

5,853,592

9,197,996

-2,024,088

580,839

4,512,372

9,298,044

16,167,326

26,666,362

41,901,982

-1,524,088

980,839

4,832,372

9,554,044

16,672,126

27,070,202

42,225,054

Year 8
6,852
15,242
3,496

65.56%

NPV @:

20.00%

191%

68,112,918

ETRAQUE CAR TRACKING PROJECT

Key Assumptions
Initial Costs
Company Registration
Furniture and Fixtures
Equipment
Office Space Advance
Advance Cash for Operations
Computers, Printers
Vehicles
Total

Units Sold
Units to be Monitored
Units Discontinued Monitoring Support
Annual Growth Rate

35,000
800,000
1,200,000
600,000
3,000,000
600,000
2,500,000
8,735,000
Year 1
650
650
40.00%

200
6

Year 2
910
1,560

Year 3
1,274
2,834
650

Year 4
1,784
3,968
910

Year 5
2,497
5,555
1,274

Year 6
3,496
7,776
1,784

Year 7
4,894
10,887
2,497

Average Price to Customer

Annual Monitoring Charges to Customer
Price of Unit ($)
Direct Monitoring Expenses Per Unit
Exchange Rate (US$/Rs)
Annual Exchange Rate Depreciation

Salaries

20,000
8,000
100
500
60
2.00%

Number
CEO
Project Manager
Marketing Manager
Assistant Manager
Marketing Assistants
Computer/Telephone Operator
Developers
Accountant
Customer Service Staff
Security Guards
Driver
Electrician
Technical Assistant
Total
Annual Growth in Salaries

1
0
1
0
3
1
4
1
2
2
1
1
1
18
15.00%

Utilities
Electricity
Water
Gas
Telephone
Internet
Mobiles
Total
Annual Growth in Utilities

20,000
1,200
1,000
10,000
15,000
8,000
55,200
25.00%

61.2

62.424

63.67248

Rate
400,000
90,000
40,000
40,000
10,000
7,000
20,000
15,000
15,000
5,000
5,000
12,000
5,000

Month
Salary
400,000
0
40,000
0
30,000
7,000
80,000
15,000
30,000
10,000
5,000
12,000
5,000

Year
Salary
4,800,000
0
480,000
0
360,000
84,000
960,000
180,000
360,000
120,000
60,000
144,000
60,000
7,608,000

64.9459296

66.2448482

67.5697452

68.9211401

Fuel
Monthly Fuel Costs
Annual Growth in Fuel
Depreciation
New Vehicle Purchase
Depreciation
Net Value of Vehicles
Other Administrative & Selling Expenses
Computers, Printers
Google Charges
Stationery
General Maintenance
Office Space Rental
Sales & Marketing
Annual Growth in Adm. Exp
Tax Rate

15,000
30.00%
Start Up
2,500,000
2,500,000

150,000
288,000
80,000
200,000
1,200,000
2,000,000
25.00%
18.00%

Year 1

Year 2

500,000
2,000,000

400,000
1,600,000

293,760

$400.00
299,635

100,000

Year 3
320,000
1,280,000

Year 4
1,500,000
256,000
2,524,000

Google Charges
305,628
311,740

Year 5

Year 6

504,800
2,019,200

403,840
1,615,360

Year 7
1,500,000
323,072
2,792,288

317,975

324,335

330,821