Aitmaad

PICK & DROP SERVICE

By: Muhammad Usama

Ghazwa Irshad
Hamid Raza
Hasnain Ali
Service Description
Aitmaad Will Provide:
Convenience
Comfortability
Car Pooling
Opportunity for drivers to earn fixed income
Pick And Drop Service To:
School & Colleges
University Students
For Children and Females
 How It Works
Aitmaad
• Fixed Earning • Reliability
Opportunity • Coordination • Convenience
• New customers • Commission • Comfortability
fee charge
Drivers Consumers
Feedback
Service Delivery
Enlist
Customers

Enlist
Drivers
Customer
Service
Assign
Routes

Ready
Vehicles
Service Delivery
School

Aitmaad
Consumer 4
Customer Service
Consumer 3

Consumer 2

Consumer 1

Starting Point
Pricing
Rs. 4000 to Driver (Fixed)

Monthly Subscription

Distance based pricing

Rs. 15/km to Driver
Rs. 10/km from Customer

Minimum Price Pool of 10Kms

 Start Up Cost
Items Cost
Advance for Building 200,000
Furniture & Fixtures 600,000
Legal Fee 100,000
Cost of System Development 150,000
Office Equipment & System 350,000
Initial Marketing 500,000
Total 1,900,000
Organizational Structure
CEO

Accounts and
Operations Marketing
Finance
Manager Manager
Manager

Customer
Coordinator Developer
Service
1800000
Break Even Point

1600000

1400000

1200000

1000000

800000

600000

400000

200000

0
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63
Total Revenue Total Cost Fixed cost
 152
Consumers

Break
Even
38
Cars
 Salary Sheet
Title of Employees Numbers Pay Scale Monthly Pay Yearly Pay

CEO 1 40,000 40,000 480,000

Operations Manager 1 30,000 30,000 360,000

Marketing Manager 1 30,000 30,000 360,000

Accounts and Finance Manager 1 30,000 30,000 360,000

Part time Developer 1 25,000 25,000 300,000

Coordination & Customer Service 2 25,000 50,000 600,000

Office Boys 1 12,000 12,000 144,000

Total 11 217,000 2,604,000

 Income statement (20% Annual Growth)
Year 1 Year 2 Year 3
Sales 15664800 18797760 22557312
Cost of Sales 8748000 10497600 12597120
G.P 6916800 8300160 9960192
Depreciation 95000 95000 95000
Rent 600000 945840 1291680
Utility Expenses 720000 724750 729500
Administration Expenses 300000 330000 360000
Salary Expense 2604000 2640000 2676000
Initial Marketing Exp. 100000 100000 100000
Legal Fee & Contractual Expenses 100000 - -
Marketing Expenses 600000 610000 620000
Total Expenses 5119000 5445590 5872180
Operating Profit 1797800 2854570 4088012
Income Tax @ 25% 449450 713642.5 1022003
Net Profit 1,348,350 2,140,927.5 3,066,009
 Cash Flow Statement
Operating Activities Year 1 Year 2 Year 3
Net Income 1348350 2140928 3066009
Depreciation 115000 115000 115000
Initial Marketing Exp. 100000 100000 100000

Cash flow from operating activities 1563350 2355928 3281009

Investing Activites
Cash flow from investing activities 0 0 0
Financing activites
Cash flow from financing activities 0 0 0

Opening balance 100000 1663350 4019278

Total Cash 1663350 4019278 7300287
Balance Sheet Year-1
Non-Current Assets Liabilities

Furniture & Fixtures 545,000

Office Equipment 290,000 Total Liability 0

Software 150,000 Equity

Current Assets Share Capital 1,900,000

Cash and Equivalents 1,663,350 Retained Earnings 1,348,350

Advances 200,000 Total Equity 3,248,350

Initial Marketing 400,000

Total Assets 3,248,350 Total Liabilities and Equity 3,248,350

Balance Sheet Year-2
Non-Current Assets Liabilities

Furniture & Fixtures 490,000

Office Equipment 230,000 Total Liability 0

Software 150,000 Equity

Current Assets Share Capital 1,900,000

Cash and Equivalents 4,019,278 Retained Earnings 3,489,278

Advances 200,000 Total Equity 5,389,278

Initial Marketing 300,000

Total Assets 5,389,278 Total Liabilities and Equity 5,389,278

Balance Sheet Year-3
Non-Current Assets Liabilities

Furniture & Fixtures 435,000

Office Equipment 170,000 Total Liability 0

Software 150,000 Equity

Current Assets Share Capital 1,900,000

Cash and Equivalents 7,300,287 Retained Earnings 6,555,287

Advances 200,000 Total Equity 8,455,287

Initial Marketing 200,000

Total Assets 8,455,287 Total Liabilities and Equity 8,455,287

Payback Period

200 20%
1 Year & 2
Customers Growth in
Months
in 1st Year Next Year
NPV, IRR & ROI
NPV IRR ROI
17,099,151 126% 70%

Required Rate of Return = 26% (Rf + Rm)

Assumed Life = 10 Years
Scenario Analysis
Pessimistic Normal Optimistic
Conditions Conditions Conditions

10% 20% 30%

Annual Annual Annual
Growth Growth Growth
Scenario Analysis (After Tax OCFs)
Years Pessimist Normal Optimist
0 -1900000 -1900000 -1900000
1 1543350 1543350 1543350
2 1933710 2452470 2971230
3 2300946 3494094 4790994
4 2725246 4784723 7217707
5 3212315 6374157 10433454
6 3743432 8297159 14649946
7 4375500 10675441 20224904
8 5091115 13570059 27533371
9 5898631 17084280 37095397
10 6807239 21342027 49587051

NPV 7,802,475 17,099,151 31,297,812

IRR 102% 126% 146%
Scenario Analysis

Sharpe
2.94 Ratio

Co-
Variance 0.34
Sensitivity Analysis (NPV Sensitivity)
• On 20% increase
Unit Price • 2.07

• On 20% increase
Unit Cost • -0.77
Thank You