The Business Plan

Sensory Explosive detective chip

Present red BySajjad Hussain

THE UNIVERSITY OF AGRICULTURE PESHAWAR K.P.K

Casualties in PakistanIn February 2012 (130 incidents of terrorism )

Sectorial Contribution to GDP Growth (% growth)

Sector 2004-05 2005-06 2006-07 2007-08 2008-09

Agriculture 1.5 1.4 0.9 0.24 1.00

Industry 3.1 1.1 2.3 0.45 - 0.92

Manufacturing 2.7 1.6 1.6 0.91 - 0.64

Services 4.4 3.3 3.6 3.41 1.92

Real GDP 9.0 5.8 6.8 4.10 2.00

Sensory Explosive Detective Chip (SED Chip)

Functionality and how it works

• Consists of a metal Phthalocyanine.

• when exposed to oxidizing agents

• increase in electrical current through its mass.

• Hexamethlene Triperoxide Diamine (HMTD) an explosive with composition of hexamine, a weak acid, and hydrogen peroxide

Works on the Principal of dog nose• A micro scale channel of liquid

absorbs and concentrates molecules from the traces of explosives present in the air.

• Interact with nanoparticles • Amplify their spectral

signature when excited by laser light.

• A computer database of spectral signatures identifies what kind of molecule has been captured

Mission Statement

Mission of Peace Technologies Ltd. is to become the leading vendor of Sensory Explosives Detective (SED) Chips worldwide. Through a combination of evolving technologies, miniaturization, affordability for the end-user, programming capabilities and ease of use, Peace Technologies will be known as the premier developer of potentially life-saving SED Chips.

Business Objectives

• To become the premier vendor in SED chips.

• To reach profitability within one year of the company's launching.

Financial Objectives

• To achieve Breakeven point with in less than one year period.

• Achieve positive net profit margin in the first year and then keep it growing in next years.

Marketing Objectives

• Focus on target marketing to increase market penetration and domination.

• Expand target markets with controlled growth.• Establish brand awareness for the Peace

Technologies Ltd. name and products.• Position ourselves as the leading SED chips in

the world.

Company Ownership & Management

• Peace Technologies Ltd. Will be owned and operated by its founders. We are currently in search of investor/partner(s) who will bring more to Peace Technologies Ltd. than just financing. The ideal Investor/Partner(s) we are seeking should bring expertise in the areas of legal, financial, and international regulatory issues, as a portion of our target market(s) will be international in scope in the near future. The Investor/Partner(s) will receive an equity position in the company and sit on the Board of Directors.

Market Segmentation

Our market segmentation focuses on three key areas of potential customers:

• Businesses• The Military• Political and other Government Consumers

Capital Requirements

Total capital required 14.8 M

Equity 10.6 M

Loans 4.2

Break even point 6 months and 18 days

Proforma Balance Sheet (Summary)

YEAR - 1 YEAR - 2 YEAR - 3 YEAR - 4 YEAR - 5 YEAR - 6 YEAR - 7 YEAR - 8 YEAR - 9 YEAR - 10

ASSETS

Total current assets 11945901.79 14587317.48 16361741.97 18400157.21 20730938.97 24585196.81 28842112.57 33589190.86 38870544.91 44732744.91

Fixed Assets 2691950 2288157.5 1944933.875 1653193.794 1405214.725 1194432.516 1015267.639 862977.4928 733530.8689 623501.2385

Intangible Assets 160000 120000 80000 40000

TOTAL ASSETS 14797851.79 16995474.98 18386675.84 20093351 22136153.69 25779629.32 29857380.21 34452168.35 39604075.78 45356246.15

LIABILITIES AND EQUITY

Total current liabilities 3117906.399 3307655.63 3513032.906 3735656.895 2737469.03 2846967.792 2960846.503 3079280.363 3202451.578 3330549.641

Non current liabilities 2959619.675 2085564.045 1103475.139

Total equity 8720325.713 11602255.31 13770167.8 16357693.47 19398684.66 22932661.53 26896533.71 31372887.99 36401624.2 42025696.5

Total liabilities & equity 14797851.79 16995474.98 18386675.84 20093351 22136153.69 25779629.32 29857380.21 34452168.35 39604075.78 45356246.15

Net Profit margin 0.055436 0.072618 0.085788 0.098493 0.110795 0.122796 0.132559 0.142042 0.151272 0.160267

Proforma Income Statement (Summary)

YEAR- 1 YEAR- 2 YEAR- 3 YEAR- 4 YEAR- 5 YEAR- 6 YEAR- 7 YEAR- 8 YEAR- 9 YEAR- 10

Sales 37440000 39686400 42067584 44591639 47267137 50103166 53109356 56295917 59673672 63254092

Cost Of Sales 28080000 29203200 30371328 31586181 32849628 34163613 35530158 36951364 38429419 39966596

Total Operating Expenses 5655450 5623617 5814441 6026927 6260350 6474224 6748268 7042389 7356654 7691278

Earning Before Interest And Taxes 3704550 4859584 5881815 6978531 8157159 9465329 10830929 12302163 13887599 15596218

Total Financial Expenses 511418.1 425845.7 329696.4 221663.2 100277 0 0 0 0 0

Profit Before Taxes 3193132 4433738 5552119 6756868 8056882 9465329 10830929 12302163 13887599 15596218

Taxation (35%) 1117596 1551808 1943242 2364904 2819909 3312865 3790825 4305757 4860660 5458676

Profit After Taxes 2075536 2881930 3608877 4391964 5236973 6152464 7040104 7996406 9026939 10137542

Net Profit Marin 0.055436 0.072618 0.085788 0.098493 0.110795 0.122796 0.132559 0.142042 0.151272 0.160267

Proforma Cash Flow Statement (Summary)

YEAR- 0 YEAR- 1 YEAR- 2 YEAR- 3 YEAR- 4 YEAR- 5 YEAR- 6 YEAR- 7 YEAR- 8 YEAR- 9 YEAR- 10

Cash provided by/ used in operations -1610000 138828.9209 3589840.759 4149057.266 4760949.226 5428427.574 6153312.708 6995411.744 7910074.717 8902108.48 9976693.426

Cash provided by/ used in Financing activities 11074650 -1203752.06 -1203752.06 -2644716.858 -3008190.704 -3399459.215 -2618486.675 -3076231.773 -3520051.975 -3998203.127 -4513469.671

Cash provided by/ used in Investing activities -8864650 0 0 0 0 0 0 0 0 0 0

Cash balance C/ F 600000 -464923.1391 1921165.56 3425505.969 5178264.491 7207232.849 10742058.88 14661238.85 19051261.59 23955166.95 29418390.7

Loan Repayment Schedule

Period Beginning Amount Payments Interest Principal Principal Outstanding

1 4429860 601876 265791.6 336084.4 4093776

2 4093776 601876 245626.5 356249.5 3737526

3 3737526 601876 224251.6 377624.5 3359902

4 3359902 601876 201594.1 400281.9 2959620

5 2959620 601876 177577.2 424298.8 2535321

6 2535321 601876 152119.2 449756.8 2085564

7 2085564 601876 125133.8 476742.2 1608822

8 1608822 601876 96529.31 505346.7 1103475

9 1103475 601876 66208.51 535667.5 567807.6

10 567807.6 601876.1 34068.46 567807.6 0.004843