4 

TRAVEL AGENT
MULTAN CANTT
ORGISNATIONAL SETUP

CHIEF EXECUTIVE

DIRECTOR     DIRECTOR FINANCE DIRECTOR 

MARKETING & SALES PRODUCTION

MARKETING  ACCOUNTS STAFF SUPERVISOR 

MANAGER PRODUCTION

SALES STAFF PRODUCTION STAFF

ADMINISTRATIVE 
STAFF
TRAVERL AGENT FEASIBILITY

MULTAN CANTT

MAHBOOB SHEIKH AND COMPANY

CHARTERED ACCOUNTANTS
MULTAN
Feasibility Study 1st 2nd 3rd 4th 5th 6th 7th 8th

TRAVEL AGENT

MULTAN CANTT

L I S T O F C O N T E N T S

S.NO. DESCRIPTION PAGE NO.

1 PROJECT SUMMARY 1

2 FACILITIES FOR THE PROJECT 2

3 OTHER FACILITIES FOR THE PROJECT 3

4 MARKETING 4

5 COST OF PROJECT 5

6 DETAIL OF LAND & BUILDING 6

7 DETAIL OF OTHER COSTS 7

8 FORECAST OF EARNING 8

9 BALANCE SHEET 9

10 CASH FLOW STATEMENT 10

11 ASSUMPTIONS UNDERLYING CALCULATIONS 11 & 11-A

12 SALES ESTIMATED 12

13 MANPOWER 13

14 ADMINISTRATIVE ACCOUNT 14

15 APPORTIONMENT OF EXPENSES 15

16 FINANCIAL CHARGES 16

17 REPAYMENT SCHEDULE 17

18 COMMERCIAL BREAK EVEN 18

19 CASH BREAK EVEN 19

20 DEBT SERVICE COVERAGE 20

21 WEIGHTED AVERAGE COST OF CAPITAL 21

22 VALUE ADDED 22

23 PAY BACK PERIOD 23

24 INTERNAL FINANCIAL RATE OF RETURN 24

 1

TRAVEL AGENT

MULTAN CANTT

Rupees

PROJECT SUMMARY

NAME OF PROJECT ZOHAIB TRAVEL AGENCY

ADDRESS MULTAN CANTT

CNIC # 36302-3677761-1

CELL # 0333-6108963

E-MAIL # forzohaib@gmail.com

NATURE OF BUSINESS ZOHAIB TRAVEL AGENCY

LEGAL STATUS SOLE PROPRIETOR SHIP

NAME OF DIRECTORS ZOHAIB TRAVEL AGENCY

EXPERIENCE Proprietor has vast experience in travel agent business.

PURPOSE OF LOAN FOR land, building, electric installation, furniture & fixture & office equipment.

MEANS OF FINANCING Sponsors Equity

COST OF PROJECT 421,143

DEBT 290,161

EQUITY 130,982

DEBT EQUITY RATIO DEBT EQUITY

Fixed Cost: 65% : 35%

Total Cost: 69% : 31%

 2

TRAVEL AGENT

MULTAN CANTT

FACILITIES FOR THE PROJECT

LOCATION

TRAVEL AGENT sole proprietor will be situated in MULTAN Cantt Insha Allah. This location is also suitable for the following
reasons.

1. AVAILABILITY OF LABOUR

Labor is frequently available at and around the location.

2. AVAILABILITY OF INFRASTRUCTURE

Power,gas, communication roads etc. are available in multan and is connected with other parts of the country through

direct dialling, rail & road.

3. Free from other environmental hazards like water logging , floods , salinity etc.
 3

TRAVEL AGENT

MULTAN CANTT

Rupees

OTHER FACILITIES FOR THE PROJECT

LAND

5.00 Marlas and will be purchased 0

BUILDING AND CIVIL WORK

576.00 Sq. ft. and will cost $ -
 4

TRAVEL AGENT

MULTAN CANTT

MARKETING

Travel Agency is a profitable business in Pakistan.

Tickets will be purchased locally.

There is a big demand of travel agents in the city and demand is increasing day by day.
 5

TRAVEL AGENT

MULTAN CANTT

Rupees

COST OF PROJECT (PROPOSED UNIT)

COST TO BE MET

Cost already
PARTICULARS
Met Sponsors Loan Total G. TOTAL

Land - - - - -

Building - 130,982 (130,982) - -

Electric Installations (WAPDA) - - 25,000 25,000 25,000

Furniture & Fixtures - - 200,000 200,000 200,000

Office Equipment - - 150,000 150,000 150,000

Preliminary & Pre-Operating Expenses - - - - -

CONTINGENCIES - - - - -

Fixed Cost 130,982 244,018 375,000 375,000

Salary & Repair exp - 46,143 46,143 46,143

Total Cost - 130,982 290,161 421,143 421,143

Debt 290,161

Sponsors 130,982

Total 421,143

Debt Equity ratio :

Fixed 65.07% : 34.93%

Total 68.90% : 31.10%

Notes:

A) Project cost includes land, building, electric installation, furniture & fixture, office equipment, preliminary & contingencies Rs. 1,266,888/

B) Working capital is Rs. 42,936/- Rupees for one-month.

 6

TRAVEL AGENT

MULTAN CANTT

Rupees

PROPOSED LAND & BUILDING

LAND - - -

Covered area Rate Total cost

- - -

TOTAL -
 7

TRAVEL AGENT

MULTAN CANTT Rupees

DETAIL OF OTHER COSTS

No. Rate Amount

Electric Installations (WAPDA) 1 lum sum 25,000

Furniture & Fixtures lum sum 200,000

Office Equipment lum sum 150,000

Preliminary & Pre-Operating Expenses (1 % of land & building) -

CONTINGENCIES (1 % of land & building) -

 8

TRAVEL AGENT

MULTAN CANTT

Rupees

FORECAST OF EARNING

Years 1st 2nd 3rd 4th 5th 6th 7th 8th

SALES OF TICKETS 16,800,000 18,000,000 19,200,000 20,400,000 21,600,000 21,600,000 21,600,000 21,600,000

PURCHASE OF TICKETS (16,023,000) (17,167,500) (18,312,000) (19,456,500) (20,601,000) (20,601,000) (20,601,000) (20,601,000)

GROSS COMMISSION 777,000 832,500 888,000 943,500 999,000 999,000 999,000 999,000

ADMINISTRATIVE EXPENSES

Wages & Salaries 432,000 453,600 476,280 500,094 525,099 551,354 578,921 607,867

Electricity 72,000 75,600 79,380 83,349 87,516 91,892 96,487 101,311

Insurance 0.5 % of building & machinery - - - - - - - -

Repair & Maintenance 12,000 13,200 14,520 15,972 17,569 19,326 21,259 23,385

Depreciation 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500

Misc. 215 237 260 286 315 346 381 419

Operating Expenses 553,715 580,137 607,940 637,201 667,999 700,418 734,548 770,482

Operating Profit 223,285 252,364 280,060 306,299 331,001 298,582 264,452 228,518

NON-OPERATING EXPENSES

Financial expenses (22,125) (19,223) (16,322) (13,420) (10,518) (7,617) (4,715) (1,814)

Profit before taxation 201,160 233,140 263,738 292,879 320,483 290,965 259,737 226,704

Taxation (20,116) (23,314) (26,374) (29,288) (32,048) (29,097) (25,974) (22,670)

Profit after taxation 181,044 209,826 237,364 263,591 288,435 261,868 233,763 204,034

Drawings (27,157) (31,474) (35,605) (39,539) (43,265) (39,280) (35,064) (30,605)

Profit Transferred to Balance Sheet 153,887 178,352 201,759 224,052 245,170 222,588 198,699 173,429

G P Ratio 4.63% 4.63% 4.63% 4.63% 4.63% 4.63% 4.63% 4.63%

N P Ratio 1.08% 1.17% 1.24% 1.29% 1.34% 1.21% 1.08% 0.94%

 9

TRAVEL AGENT

MULTAN CANTT

Rupees

PROJECTED BALANCE SHEET

Years 0 th 1st 2nd 3rd 4th 5th 6th 7th 8th

CURRENT ASSETS

--------------

Cash/Bank 21,143 163,839 329,731 516,522 722,818 947,137 1,139,889 1,304,941 1,440,496

Advances/ Prepayments - 152,648 160,280 168,294 176,709 185,545 194,822 204,563 214,791

Store and spares - - - - - - - - -

Stock / Service Material - - - - - - - - -

Trade Debtors - 305,214 335,735 369,309 406,240 446,864 491,550 540,705 594,776

CURRENT ASSETS 21,143 621,701 825,747 1,054,125 1,305,767 1,579,546 1,826,262 2,050,210 2,250,064

LONG TERM DEPOSITS

News Paper Halka-600 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000

FIXED ASSETS :
Fixed Assets 375,000 375,000 375,000 375,000 375,000 375,000 375,000 375,000 375,000
Depreciation - (37,500) (75,000) (112,500) (150,000) (187,500) (225,000) (262,500) (300,000)

Net Fixed Assets 375,000 337,500 300,000 262,500 225,000 187,500 150,000 112,500 75,000

TOTAL ASSETS 421,143 984,201 1,150,747 1,341,625 1,555,767 1,792,046 2,001,261 2,187,709 2,350,063
LIABILITIES & EQUITY
CURRENT LIABILITIES
-------------------
Bank Borrowing - - - - - - - - -
Taxation - 20,116 23,314 26,374 29,288 32,048 29,097 25,974 22,670
Creditors - 425,325 446,591 468,921 492,367 516,985 542,834 569,976 598,475

Total Current Liabilities - 445,441 469,905 495,295 521,655 549,033 571,931 595,950 621,145

Bank Gurantee - - - - - - - - -
SUPPLIERS CREDIT
NBP Loan 290,161 253,891 217,621 181,351 145,080 108,810 72,540 36,270 (0.00)

Partner's Capital 130,982 130,982 284,869 463,221 664,980 889,032 1,134,202 1,356,790 1,555,489
Profit for the Year - 153,887 178,352 201,759 224,052 245,170 222,588 198,699 173,429

Total Equity 130,982 284,869 463,221 664,980 889,032 1,134,202 1,356,790 1,555,489 1,728,918

Total Liab. + Equity 421,143 984,201 1,150,747 1,341,626 1,555,767 1,792,045 2,001,261 2,187,709 2,350,063
0 0 0 (0) (0) 1 (0) 0 (0)
 10
TRAVEL AGENT
MULTAN CANTT
Rupees
CASH FLOW STATEMENT

0 th 1st 2nd 3rd 4th 5th 6th 7th

RUPEES RUPEES RUPEES RUPEES RUPEES
A) CASH FLOW FROM OPERATING ACTIVITIES:
Net Profit before taxation - 201,160 233,140 263,738 292,879 320,483 290,965 259,737
Adjustment:
Depreciation - 37,500 37,500 37,500 37,500 37,500 37,500 37,500
Preliminary expenses - 25,000
Financial Charges - 22,125 19,223 16,322 13,420 10,518 7,617 4,715
Op. P. Before W. Capital Changes - 285,785 289,863 317,560 343,799 368,501 336,082 301,952
CHANGES IN WORKING CAPITAL:
(Increase)/Decrease in C. Assets:
Stores & Spares - - - - - - - -
Stock in trade - - - - - - - -
Trade Debtors - (305,214) (30,521) (33,574) (36,931) (40,624) (44,686) (49,155)
Advances, Deposits and Prepayments - (152,648) (7,632) (8,014) (8,415) (8,835) (9,277) (9,741)
Increase/(Dec.) in C. Liabilities:
Short Term Bank Borrowings - - - - - - - -

Creditors, Accruals and Other Payables - 445,441 24,464 25,390 26,360 27,378 22,898 24,019

- (12,421) (13,690) (16,198) (18,986) (22,081) (31,066) (34,877)

Changes in Working Capital - 273,364 276,174 301,362 324,813 346,420 305,016 267,075

Less: Payments

Taxation - 20,116 23,314 26,374 29,288 32,048 29,097 25,974

Financial charges - 22,125 19,223 16,322 13,420 10,518 7,617 4,715

- 42,241 42,537 42,696 42,708 42,566 36,714 30,689

Cash Flow From Operating Activities - 231,123 233,636 258,666 282,105 303,854 268,302 236,386

B) CASH FLOW FROM INVESTING ACTIVITIES:

(Increase)/Decrease in Fixed Assets (375,000) - - - - - - -

(Increase)/Decrease in security deposits (25,000) (25,000) - - - - - -

Bank Guarantee - - - - - - - -

(Increase)/Decrease in Long Term Deposits - - - - - - - -

Net Cash from Investing Activities (400,000) (25,000) - - - - - -

C) CASH FLOW FROM FINANCING ACTIVITIES:

Increase /Decrease in Capital 130,982 - - - - - - -

Drawings - (27,157) (31,474) (35,605) (39,539) (43,265) (39,280) (35,064)

Increase/(Decrease) in Lease Liability 290,161 (36,270) (36,270) (36,270) (36,270) (36,270) (36,270) (36,270)

National Bank Loan - - - - - - - -

Increase/(Decrease) in Suppliers Credit - - - - - - - -

Net Cash from Financing Activities 421,143 (63,427) (67,744) (71,875) (75,809) (79,535) (75,550) (71,335)

Net Increase/(Decrease) In Cash

and Cash Equivalent (A+B+C) 21,143 142,696 165,892 186,792 206,296 224,318 192,752 165,051

Cash And Cash Equivalent At The

Beginning Of The Year - 21,143 163,839 329,731 516,522 722,818 947,137 1,139,889

Cash And Cash Equivalent At The

end of the year 21,143 163,839 329,732 516,523 722,819 947,135 1,139,890 1,304,939

(0) 0 1 1 1 (2) 1 (2)

 11
TRAVEL AGENT
MULTAN CANTT
ASSUMPTIONS UNDERLYING CALCULATIONS

Total Working Days = 360

No. of shifts = 1
Working Hours = 8
Capacity used 1st 2nd 3rd 4th 5th 6th 7th 8th
100% 100% 100% 100% 100% 100% 100% 100%
OPERATION TIME
Working Hours = 8 Hours per Day

ONE MONTHS EXPENSES

One month working capital requirements
Wages & Salaries 36,000
Electricity 6,000
Insurance 0.5 % of building & machinery -
Repair & Maintenance 1,000
Depreciation 3,125
Misc. 18

Capital Expenditure 46,143

Land -
Building -
Electric Installations (WAPDA) 25,000
Furniture & Fixtures 200,000
Office Equipment 150,000
Preliminary & Pre-Operating Expenses -
CONTINGENCIES -
375,000
One month total expenses 421,143

ANNUAL PURCHASES
Brand Supplier oduct mix % Annual Sale commission Annual IncomeMonthly Sal Monthly Purchases
PIA PIA 12.50% 3,000,000 2% 60,000 250,000 245,000
SAUDI ALIRLINE IATA 12.50% 3,000,000 5% 150,000 250,000 237,500
SHAHEEN IATA 12.50% 3,000,000 5% 150,000 250,000 237,500
EMIRATES IATA 12.50% 3,000,000 5% 150,000 250,000 237,500
SRILANKA IATA 12.50% 3,000,000 5% 150,000 250,000 237,500
EITHAD IATA 12.50% 3,000,000 5% 150,000 250,000 237,500
QATAR IATA 12.50% 3,000,000 5% 150,000 250,000 237,500
GULF IATA 12.50% 3,000,000 5% 150,000 250,000 237,500
100.00% 24,000,000 1,110,000 2,000,000 1,907,500
Purchases of tickets
63,583 Rupees Daily
1,907,500 Rupees Monthly
22,890,000 Rupees Anually

Sales of tickets
Daily Sale of tickets 66,667 Rupees Daily
Monthly Sale of tickets 2,000,000 Rupees Monthly
Anually Sales of tickets 24,000,000 Rupees Anually

Commission 1,110,000 Rupees

 11-A

RAW MATERIALS CONSUMED

AT 100 % CAPACITY

Daily Cost of tickets 63,583

Monthly Cost of tickets 1,907,500
Anually Cost of tickets 22,890,000

Estimated cost Rupees

1st 2nd 3rd 4th 5th 6th 7th 8th

CAPACITY USED 70% 75% 80% 85% 90% 90% 90% 90%

Total annual cost of Air Tickets 16,023,000 17,167,500 18,312,000 19,456,500 20,601,000 20,601,000 20,601,000 20,601,000

TOTAL ANNUAL COST 16,023,000 17,167,500 18,312,000 19,456,500 20,601,000 20,601,000 20,601,000 20,601,000

Rupees

POWER / FUEL

Rupees

1st 2nd 3rd 4th 5th 6th 7th 8th

Electric Expenses

Office 72,000 75,600 79,380 83,349 87,516 91,892 96,487 101,311

72,000 75,600 79,380 83,349 87,516 91,892 96,487 101,311

Rupees 6,000 is assumed cost of electricity per annum with 5 % increase.

 12

TRAVEL AGENT

MULTAN CANTT

Rupees

SALES ESTIMATES

CAPACITY USED 70% 75% 80% 85% 90% 90% 90% 90%

SALES VOLUME

YEAR 1st 2nd 3rd 4th 5th 6th 7th 8th

Sale of tickets 16,800,000 18,000,000 19,200,000 20,400,000 21,600,000 21,600,000 21,600,000 21,600,000

TOTAL ANNUAL REVENUE 16,800,000 18,000,000 19,200,000 20,400,000 21,600,000 21,600,000 21,600,000 21,600,000

Commission Income @ 5% 840,000

NOTE Assuming 5 % increase in the sale price.

 13

TRAVEL AGENT

MULTAN CANTT

Rupees

MANPOWER PLAN

Description No. of Salary / Total

Employees Month

PLANT STAFF & LABOUR

--------------------------

Manager 1 8,000 96,000

TOTAL SALARY OF FAC.STAFF 1 96,000

Add: Fringe benefits 50% 48,000

144,000

5% increase in labour cost is assumed

1st 2nd 3rd 4th 5th 6th 7th 8th

TOTAL 144,000 151,200 158,760 166,698 175,033 183,785 192,974 202,622

Description No. of Salary / Total

Employees Month

ADMN. AND GENERAL STAFF

--------------------------

Workers 2 8,000 192,000

TOTAL SALARY OFFICE STAFF 2 192,000

Add: Fringe benefits 50% 96,000

288,000

5% increase is assumed in labor cost

1st 2nd 3rd 4th 5th 6th 7th 8th

288,000 302,400 317,520 333,396 350,066 367,569 385,948 405,245

TOTAL SALARY 432,000 453,600 476,280 500,094 525,099 551,354 578,921 607,867
 14

TRAVEL AGENT

MULTAN CANTT Rupees

ADMINISTRATIVE ACCOUNT

Year 1st 2nd 3rd 4th 5th 6th 7th 8th

ADMINISTRATIVE EXPENSES

Wages & Salaries 432,000 453,600 476,280 500,094 525,099 551,354 578,921 607,867

Electricity 72,000 75,600 79,380 83,349 87,516 91,892 96,487 101,311

Insurance 0.5 % of building & machinery - - - - - - - -

Repair & Maintenance 12,000 13,200 14,520 15,972 17,569 19,326 21,259 23,385

Depreciation 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500

Misc. 215 237 260 286 315 346 381 419

553,715 580,137 607,940 637,201 667,999 700,418 734,548 770,482

5 % increase is assumed in all the expenses.

 15

TRAVEL AGENT

MULTAN CANTT

Rupees

APPORTIONMENT OF EXPENSES

( Cost of Building & Machinery for depreciation purposes )

Building Electric Installation

- 25,000.00 -

Preliminary & Pre-Operating Expenses - -

Contingencies - - -

- 25,000.00 0

DEPRECIATION SCHEDULE

PARTICULARS Cost Rate 1st 2nd 3rd 4th 5th 6th 7th

Land 0 0% - - - - - - -

Building 0 5% - - - - - - -

Electric Installations 25,000 10% 2,500 2,500 2,500 2,500 2,500 2,500 2,500

Furniture & Fixtures 200,000 10% 20,000 20,000 20,000 20,000 20,000 20,000 20,000

Office Equipment 150,000 10% 15,000 15,000 15,000 15,000 15,000 15,000 15,000

375,000 37,500 37,500 37,500 37,500 37,500 37,500 37,500

 16

TRAVEL AGENT

MULTAN CANTT

Rupees

FINANCIAL CHARGES

YEAR 1st 2nd 3rd 4th 5th 6th 7th 8th

Mark-up on NBP Loan @ 8 % 22,125 19,223 16,322 13,420 10,518 7,617 4,715 1,814

- - - - - - - -

22,125 19,223 16,322 13,420 10,518 7,617 4,715 1,814

YEAR 1st 2nd 3rd 4th 5th 6th 7th 8th

- - - - - - - -

Repayment-NBP LOAN 36,270 36,270 36,270 36,270 36,270 36,270 36,270 36,270

Total 36,270 36,270 36,270 36,270 36,270 36,270 36,270 36,270

Cumulative Payments 36,270 72,540 108,810 145,080 181,351 217,621 253,891 290,161
 17

TRAVEL AGENT

MULTAN CANTT

Rupees

REPAYMENT SCHEDULE PROPOSED UNIT

Amount of Loan 290,161 Thousands

Repayment Period 8 Years

Nature of payments Yearly

Interest Rate 8.00%

LEASING BANK

O/ Bal. INTEREST PRINCIPAL INSTALMENT C/ BAL.

1 290,161 5,803 9,068 9,068 281,093

2 281,093 5,622 9,068 9,068 272,026

3 272,026 5,441 9,068 9,068 262,958

4 262,958 5,259 9,068 9,068 253,891

5 253,891 5,078 9,068 9,068 244,823

6 244,823 4,896 9,068 9,068 235,756

7 235,756 4,715 9,068 9,068 226,688

8 226,688 4,534 9,068 9,068 217,621

9 217,621 4,352 9,068 9,068 208,553

10 208,553 4,171 9,068 9,068 199,486

11 199,486 3,990 9,068 9,068 190,418

12 190,418 3,808 9,068 9,068 181,351

13 181,351 3,627 9,068 9,068 172,283

14 172,283 3,446 9,068 9,068 163,216

15 163,216 3,264 9,068 9,068 154,148

16 154,148 3,083 9,068 9,068 145,080

17 145,080 2,902 9,068 9,068 136,013

18 136,013 2,720 9,068 9,068 126,945

19 126,945 2,539 9,068 9,068 117,878

20 117,878 2,358 9,068 9,068 108,810

21 108,810 2,176 9,068 9,068 99,743

22 99,743 1,995 9,068 9,068 90,675

23 90,675 1,814 9,068 9,068 81,608

24 81,608 1,632 9,068 9,068 72,540

25 72,540 1,451 9,068 9,068 63,473

26 63,473 1,269 9,068 9,068 54,405

27 54,405 1,088 9,068 9,068 45,338

28 45,338 907 9,068 9,068 36,270

29 36,270 725 9,068 9,068 27,203

30 27,203 544 9,068 9,068 18,135

31 18,135 363 9,068 9,068 9,068

32 9,068 181 9,068 9,068 (0.00)

4,787,655 95,753 290,161 290,161 4,497,494

 18

TRAVEL AGENT

MULTAN CANTT

(000)

COMMERCIAL BREAK EVEN

3RD YEAR

PARTICULARS VARIABLE FIXED TOTAL

------------

Admin. Selling & Gen .Exps. 604,340 3,600 607,940

Financial Charges - (16,321.55) (16,321.55)

604,340 (12,722) 591,619

19,200,000

18,595,660

(12,722) x 100

Break Even Point = -------------------- 0.00 %

18,595,660

Margin of safety = 100 %

 19

TRAVEL AGENT

MULTAN CANTT

Rupees

CASH BREAK EVEN

3RD YEAR

PARTICULARS VARIABLE FIXED TOTAL

-----------

Admin. Selling & Gen .Exps. 604,340 3,600 607,940

Financial Expenses - (16,322) (16,322)

Loan Repayment - 36,270 36,270

604,340 23,549 627,889

Sales 19,200,000

Contribution 18,595,660

23,549 X 100

Cash Break Even Point = ------------------- = 0.00 %

18,595,660

Margin of safety = 100 %

 20

TRAVEL AGENT

MULTAN CANTT

000

DEBT SERVICE COVERAGE

Year 1st 2nd 3rd 4th 5th 6th 7th 8th

Net Profit 181,044 209,826 237,364 263,591 288,435 261,868 233,763 204,034

Depreciation 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500

Financial Charges (22,124.77) (19,223.16) (16,321.55) (13,419.94) (10,518.33) (7,616.72) (4,715.11) (1,813.51)

196,419 228,103 258,542 287,671 315,417 291,751 266,548 239,720

Financial Charges (22,124.77) (19,223.16) (16,321.55) (13,419.94) (10,518.33) (7,616.72) (4,715.11) (1,813.51)

Loan repayment - 36,270 36,270 36,270 36,270 36,270 36,270 36,270

(22,124.77) 17,047 19,949 22,850 25,752 28,653 31,555 34,457

Debt Service Coverage

With dep. 0.0 13.4 13.4 13.0 12.6 12.2 10.2 8.4

Without dep. 0.0 11.2 11.2 11.1 10.9 10.8 8.9 7.3
 21

TRAVEL AGENT

MULTAN CANTT

Rupees

WEIGHTED AVERAGE COST OF CAPITAL

PARTICULARS AMOUNT MARK-UP COST

------------- -------------- ------------- --------

Long Term Loan 290,161 15.00 % 43,524

Cash Credit 0 0.36 /1000 0

Capital 130,982 20 % 26,196

------ ------

421,143 69,720

------ ------

Average Weighted Cost of Capital: 16.55 %

 22

TRAVEL AGENT

MULTAN CANTT

000

VALUE ADDED

YEAR 1st 2nd 3rd 4th 5th 6th 7th 8th

Sales 16,800,000 18,000,000 19,200,000 20,400,000 21,600,000 21,600,000 21,600,000 21,600,000

Less:

Admn. expenses 553,715 580,137 607,940 637,201 667,999 700,418 734,548 770,482

553,715 580,137 607,940 637,201 667,999 700,418 734,548 770,482

Value Added 16,246,285 17,419,864 18,592,060 19,762,799 20,932,001 20,899,582 20,865,452 20,829,518
 23

TRAVEL AGENT

MULTAN CANTT

000

PAY BACK PERIOD

Year 1st 2nd 3rd 4th 5th 6th 7th 8th

Net Profit 181,044 209,826 237,364 263,591 288,435 261,868 233,763 204,034

Depreciation 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500

Drawings (27,157) (31,474) (35,605) (39,539) (43,265) (39,280) (35,064) (30,605)

191,387 215,852 239,259 261,552 282,670 260,088 236,199 210,929

Remaining Balance 229,756 13,903 (225,356) (486,908) (769,578) (1,029,666) (1,265,864) (1,476,793)

Capital Cost = 421,143

Pay Back Period = 6 Years APPROX

 24

TRAVEL AGENT

MULTAN CANTT

Rupees

INTERNAL FINANCIAL RATE OF RETURN

Year Operating Dep. Income Workers Net Cash

Profit Tax Fund Flow

----------------------------------------------------------------

0 - - - - (421,143)

1 223,285 37,500 20,116 0 240,669

2 252,364 37,500 23,314 0 266,550

3 280,060 37,500 26,374 0 291,186

4 306,299 37,500 29,288 0 314,511

5 331,001 37,500 32,048 0 336,453

6 347,551 37,500 32,048 0 353,003

7 364,928 37,500 32,048 0 370,380

8 383,175 37,500 32,048 0 388,627

9 402,334 37,500 32,048 0 407,786

10 422,450 37,500 32,048 0 427,902

65.06%