2012

SECUREMONEY.com
MBA 3-B

BUSINESS PLAN
GROUP MEMBERS: ANUM SULAIMAN, FAIZAN QAISAR,. SANA AKBAR ALI, UMAIR FARHAN

STATEMENT OF PURPOSE Securemoney aims to develop a highly secured, at the same time, a very simple and easy money transfer and online shopping system that will enable users Send money and receive money from people with the simplicity of sending and receiving emails without any credit/debit card, one would be able to transfer money to other users accounts only with ones digital id. Do away with the overhead charges and insecurity factors invariably associated with credit cards during online shopping. The customers will be able to shop online or even at retail shops without the use of credit/debit card (not to speak of cash). The system may be viewed as a mobile ATM. One can pay the bills and complete ones shopping with ones WAP enabled mobile phone or ones desktop PC home or somewhere else or maybe at the retailers outlet computer instead of point of service terminal. The seller on the other hand carrying out sales through securemoney, does not need to part with a considerable portion of his sales money in paying for credit card transactions, which he has been doing hitherto. Receive through a system called securemoney manager( similar to something like yahoo messenger or visa wallet) help on best deals along with features like consulting with the recipient before transferring money with some web institute by consulting with the recipient before transferring money, freezing of negotiations , getting stock prices and buying or selling stocks. The entire endeavor only needs that both parties have account with securemoney.

Apart from these, securemoney will enable micropayments. The system will enable larger number of sellers assume merchant status, without the requirement of any Acquiring bank or ISO, and at the same time have facilities for Charge backing, if at all necessary.

The system aims to drive major portion of credit card users to itself. This does not mean however, that people would not need cards. They will need cards to deposit money into their securemoney accounts. The system would aim to reduce the amount of buying and selling as well as transfer of money that takes place through credit cards channeling that flow of money now taking securemoneys symbolic currency at low overhead charges.

TABLE OF CONTENTS
1. EXECUTIVE SUMMARYpg. 3 2. BUSINESS IDEA..pg. 6 3. START UP SUMMARY.pg11 4. START UP REQUIREMENT.pg12 5. START UP FUNDING....pg13 6. MARKETING..pg15 7. CUSTOMER WOULD BE MADE AWARE OF THE FOLLOWING..pg16 8. COMPETITIONpg18 9. OPERATING PROCEDURES.pg22 10. OSI( OPERATING SERVER INTERFACE)...pg24 11. PERSONNEL PLANpg25 12. ASSUMED CAPACITY..pg26 13. PRO FORMA INCOME STATEMENT...pg28 14. PRO FORMA BALANCE SHEET....pg29 15. PRO FORMA CASH FLOW..pg30 16. STATISTICAL DATAPg31

EXECUTIVE SUMMARY SecureMoney.com is company that provides financial service which focuses on Simplifying monetary transfers and transactions Removing common credit card overhead charges and handling-problems and thus addressing the needs of both buyer and seller Simplifying online and mobile shopping Enabling micropayments

Market size seems very promising. Prominent data has been presented in the marketing section. Apart from appealing to users who would like to or require to transfer money from and to relatives and friends and perform online shopping without having to reveal credit card information every time. The service will be very much relevant to petty sellers for whom getting a merchant status is more than a big headache. Sellers who already have merchant status would be attracted to the service because of the ease with which this service can be integrated with their system and because of the fact that unlike credit card companies, processing fees for securemoney would be very low (say only 1% of the conventional overheads due to credit cards) again the concept of micropayments will bring in its own traffic. May be in a few years companies will find it more convenient to pay their employees through securemoney.

BREIF IDEA OF REVENUE PLAN

The net pooled amount with securemoney ( i.e. the amount which the users have deposited into their accounts through credit cards or drafts or cheques etc. and which is present in their accounts now in the form of virtual/symbolic currency) deposited with the bank, gives secure

money say 10% interest rate. Securemoney gives its user something like 5.0% or may be none if the account in the cashbox is below a specified minimum.

Securemoney will also take a small percentage of money transferred, say 0.08% in case of noncommercial transfers and 0.10% in case of transfers relating to online shopping( much lesser compared to what a merchant has to pay to the acquiring and issuing banks in the present credit card system) A major part of the revenue will also be generated by taking a small percentage on the micropayments. It seems fascinating to even think of the revenue that would be generated if search engines started considering micropayments. The total cost of the project is RS .forty two lakhs and eighty thousand only. Securemoney is a partnership which will reach profitability by month eight and will have modest profits by year three.

BUSINESS IDEA What is Securemoney.com? Securemoney.com is a website which lets its customers create accounts very much like one creates a mail account. Once an account has been credited one can deposit money into ones securemoney cash-box through credit cards, bank draft or cheque. The user may even deposit cash in favor of his account at some zonal centers. Once this is done the deposited cash is transferred to the account holder in the form of symbolic cash i.e. the cash is actually deposited in a master account and the user is empowered with an equivalent amount of virtual money (say, 1 Virtual Money Unit (VMU) = 1 dollar). Transfer of cash from one securemoney account to another in no way involves any physical movement of cash, the transfer is only symbolic and as long as securemoney account holders are doing all buying and selling online. (It being assumed that all these buyers and sellers have securemoney accounts). The securemoney system remains basically a closed system, with securemoney enjoying the interest return on this entire amount which all the users have deposited with it i.e. the money in the master account. In return users get the conveniences as described is this summary. securemoney also provides the option of transferring a users money from the virtual securemoney account to some physical bank account. In this way securemoney empowers the account holder with following conveniences. a) Easy money transfer. b) Competitive advantage over credit cards. c) Empowering not only oneself but also ones designated people. d) Safe, easy and effortless online shopping.
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e) Micropayments. a) Money transfers: securemoney enables the account holder to send (and also receive) money to other securemoney users (in the form of symbolic currency) with the same ease as that of sending e-mails. The sender needs to fill a form with only the following little details, receivers accounts address, the amount to be transferred and if or not the transfer is being made for meting out salary payments. Suppose Mr. working in the Pakistan wants to send money to Mr.Y living in, say, India. All Mr.X has to do is just send an email sort of thing specifying that amount to be transferred to Mr.Ys securemoney account (maybe with the few lines of personal communication as well) and all these with the ease of sending just an email. b) Advantages over credit cards: Mr.X being a securemoney account holder does not need to bother if a particular shop accepts a Master Card or a Visa Card. All he has to do is to transfer the amount to the shops securemoney account (i.e. send an email address to the shop, carrying a specific amount). He does not need to carry his credit card every time he goes out for buying something. He only needs to remember his login and password. The shop only needs to have a computer connected to the internet or maybe just a mobile phone as the service goes wireless. Different rates along the payment path one can also increase ones revenue by holding onto a larger piece of the purchase price.

With securemoney on the other hand, 1) There would be apparently no overhead charges. 2) Small vendor would be compelled to sell items in batches in order to minimize overhead cost per unit sold. This would obviously be due to the fact now there wont be any overhead cost per unit sold. No acquiring bank, no issuing bank, and no credit card association etc. credit cards will be required by customers only to upload money into their securemoney cash-box. Once this is done, the customer can virtually forget about credit cards. c) Empower not only yourself but also designated people: Mr.X can also share certain folders were he keeps money for his designated people to use. For example Mr.X may specify a folder, say labeled son and keep in it $250 when his son accesses his own account, this folder is automatically made available to his son for use. Obviously this requires both parties to have accounts with securemoney. d) Online shopping: securemoney eradicates the risk involved in exposing your credit card number to risky and not well known sited as well as safe sites connected across unsafe routes every time you want to shop through securemoney Mr.X only needs to transfer symbolic money from his folder to the seller securemoney account (i.e. amazoncashbox@securemoney.com) just as he has already sent money mails to his parents. He does not need to worry which card is usable in which country. And during online shopping whenever you click on any article for purchase the securemoney money manager pops up guides you through the transaction process.

CHARGEBACK PROVISIONS With securemoney sellers can receive money immediately if customer visits the seller shop (POS). If the transaction is online, the amount that is send to the seller is kept in a temporary vault. A signal is sent to the seller to indicate that such and such from such and such place has placed such an order. The seller can confirm the order through phone or email (to prevent fraud) and dispatch the goods. Once goods are received and the customer is happy with the quality and quantity of the same, (i.e. there is no case of charge backing) he can transfer money from the temporary vault to the seller. If the customer does not do this, securemoney will itself, after waiting for 91 (to be reviewed) days transfer the money to the seller. This is to alloy for 90 day period for charge backing. If however there is some case of charge backing on the issue of poor quality or etc. (here there is no question of fraudulent use) the customer has to report to securemoney customer support with the details of the transaction etc. the customer will have no direct power of returning money from the temporary vault. If the charge backing results in a decision in favor of the customer, securemoney transfers money from the vault back to the customers account.

e) Effectiveness in case of micropayments:

CURRENCY DEPOSITED BY YOU IN YOUR ACCOUNT (SAY

APPEARS AS VIRTUAL CASH

VIRTUAL MONEY SENT TO YOU BY SOMEOTHER SECUREMONEYACCOUNT HOLDER

SEND MONEY TO SELLER OR USE MONEY MANAGER (RECOMMENDED). MICROPAYMENTS ARE AUTOMATICALLY DONE BY MONEY MANAGER.
ONLINE SHOPPING

SEND MONEY MAIL

CONVERSION OF CURRENCY TYPE INTO THAT OF RECEIVING END

MONEY TRANSFERS

1) INSTANTANEOUS 2) IN THE FORM OF VIRTUAL CURRENCY 3) METHOD AS SIMPLE AS SENDING EMAILS 4) SENDER GETS CONFIRMATION WHEN RECEIVER OPENS MAIL 5) VERY LOW TRANSFERP ROCESSING CHARGES 6) PROVISIONS FOR CONVERTING VIRTUAL CASH INTO REAL CASH AND DEPOSITING IT INTO SPECIFIED BANK CHECKING ACCOUNTS EXITS.

1) SUPPORTS CHARGEBACK 2) PROVISION FOR XMAPLE MONEY MANAGER HELPING CUTOMERS IN THEIR PURCHASE 3) LOW TRANSACTION CHARGE, MUCH LOWER THAN EXISTING CREDIR CARD CHARGES. 4) BOTH BUYER AND SELLER ARE PROTECTED THROUGH USE OF INTERMEDIATE VAULT. 5) SELLER CAN CONVERT VIRTUAL CURRENCY INTO REAL CURRENCY AND DEPOSIT THEM INTO SPECIFIED CHECKING ACCOUNTS WITH JUST A CLICK OF MOUSE.

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START UP SUMMARY Start-up Summary: Securemoney financial Managers will incur the following start-up costs:

Desk, chair and file cabinet. Couch and table. Fax machine, copier. Client servers. databases Computer with printer, CD-RW, and Internet connection. Legal fees for business formation.

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START UP REQUIRMENT:
RS LEGAL STATIONARY BROCHERS CONSULTANT RENT RESEARCH AND DEVELOPMENT EQUIPMENT EXPENSE OTHERS TOTAL START UP EXPENCE START UP ASSETS CASH REQUIRED OTHER CURRENT ASSETS LONGTERM ASSETS TOTAL ASSETS TOTAL REQUIREMENTS 13, 00,000 200,000 (furniture +office supplies) 1050,000 25, 50,000 42, 80,000 200,000 100,000 50,000 80,000 100,000 150,000 0 0 1730,000

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START UP FUNDING RS
START UP EXPENCE TO FUND 1730,000

START UP ASSETS ON FUNDS

25, 50,000

TOTAL FUNDING REQUIREMENT

42, 80,000

ASSETS:

NON-CASH ASSETS FROM START UP

12, 50,000

CASH REQUIREMENT FROM START UP

1300000

ADDITIONAL CASH RAISED

CASH BALANCE ON STARTING DATE

13, 00,000

25, 50,000

TOTAL ASSETS

LIABILITY AND CAPITAL LIABILITIES

0 0

ACCOUNTS PAYABLE

OTHER CURRENT LIABILITY (INTEREST FREE)

TOTAL LIABILITY

CAPITAL PLANNED INVESTMENT

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INVESTOR 1

856000

INVESTOR 2

856000

INVESTOR 3 INVESTOR 4

856000 856000

INVESTOR 5

856000

ADDITIONAL INVESTMENT REQUIRED

TOTAL PLANNED INVESTMENT

42, 80,000

LOSS AT STARTUP (STARTUP EXPENCE)

1730,000

TOTAL CAPITAL TOTAL CAPITAL &LIABILITY

25, 50,000 25, 50,000

TOTAL FUNDING

42, 80,000

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MARKETING The categories that securemoney aims to serve are primarily: People who use credit cards for online transactions and people who are skeptic about using credit cards on web. Companies and webmasters who would benefit by the introduction of micropayments Small business persons and home business ventures , for whom securing merchant status is a botheration and impossible process Medium and large businesses looking for a system that charges lesser overhead charges to pay than that with present credit cards

Apart from appealing to users who would like or require to transfer money from and to relatives and friends and perform online shopping without having to reveal credit card information every time they do so. The service would be very much relevant to petty sellers for whom getting a merchant status is more than a big headache. Sellers who already have a merchant status would be attracted by the service because of the ease with which this service can be integrated with their system of monetary transaction and unlike credit card companies the processing fee is very low as only 1% of conventional overheads due to credit cards).Micropayments will generate in its own traffic and likewise revenue.

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THE CUSTOMER WOULD BE MADE AWARE OF THE FOLLOWING: 1- The competitive advantage that securemoney possesses over the other conventional credit card companies and other existing providing similar services 2- Pointing out how the securemoney services are important to the customer and make him feel that he is the winner by using the services of securemoney 3- Being exact and very specific about the facts and figures how the securemoney services would be better than the other existing one

Unless the proposition offered by a company appeals to their interest unless it satisfies their desires and shows that they are gaining customers would never buy or use the services provided by a company .keeping these in mind with mode detailed surveys on the quality and level of services they wish to have the promos for securemoney would be drafted. Appealing to both the rational and emotional motives of the customers like:
ECONOMY OF PURCHASE EASE OF USE ACCURATE PERFORMANCE TIME SAVING EASE OF INSTALLATION SPACE SAVING AVAILABILITY

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DESIRE TO BE UNIQUE PRIDE OF OWNERSHIP DESIRE OF PRESTIGE DESIRE FOR RECOGNITION SAFETY DESIRE OF SECURITY

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COMPETITION Competition and Competitors: To show that the securemoney system is more effective than the existing system of credit card companies, the following discussion should hold pertinent. Credit Cards At Risk Of Fraud: For an e-commerce credit card fraud prevention system to work, it needs to be highly automated so that its cost effective. You want to minimize manual screening methods or whats often called exception processing. It is expensive and it frustrates legitimate customers because they dont get a routine and fast confirmation that you have accepted their order. This means that the merchant assumes more risk than a storefront retailer. Again if a merchant overuses exception processing he will never is able to scale his e-commerce transaction. When the projected number of users of credit card growing up the credit card processing costs would proportionately grow Understanding Your Risks: Experts estimate fraud rates for online credit card sales at between 1% and 8% and sometimes higher. Things like consumer electronics and digital goods have the highest fraud rate. (Digital goods are those things that you can deliver over the net like software, games, graphics and information. digital goods are made of a problem because there is less of a delivery trail to follow once you discover the fraud. Credit card thieves know this and use it to their advantage. There is no foolproof method available to eliminate online credit card fraud. It will always be more difficult environment for credit cards than a physical retail store. The retail store can minimize its risks by looking for embedded holograms, fine line printing, signature comparisons

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and photographs of the cardholder. The internet transaction has none of these advantages. Instead of trying to use things like artificial intelligence to track fraud, online shopping for digital goods will perhaps be most facilitated by securemoney. You order the stuff. Your money goes to the temporary vault, the website sends you the digital good then and there itself, and you confirm your transaction and the money are transferred to the seller. If no confirmation is received from the customer, money from the vault is sent to the seller after a waiting period of 91 days. In case of a chargeback securemoney customer support center takes the issue and sees that the interests of the buyer and seller are guarded. Difficulties And Risks Involved In Obtaining Merchant Status Under Existing Credit Card Methods: securemoneys solution Retail and service based business that cannot accept credit card payments are at disadvantage against their competitors. In the United States alone, people are spending about 250 million dollars a year with credit cards. It is no wonder that business want to accept credit cards, even though it means paying a percentage of each credit card sales to the acquiring bank or processor. Attaining merchant status can be hard for small businesses, especially if they are home based or sell by mail order. Banks are afraid of extending merchant status to businesses that present too much risks, as home based and mail order businesses are perceived as high risk. Banks are afraid that at risk business will not be able to handle any chargeback that hit their account. If the merchant cannot handle a chargeback, the bank or ISO that processed the credit card will have to absorb it. In fact, VISA will penalize a bank if they have a merchant account that has more than one percent chargeback of their sales. There are many con-artists out there who offer to help a

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business gain merchant status and then walk away with the processing fee never to be heard from again. This certainly causes many households and small business entrepreneurs from starting small ventures. Credit Cards: securemoney has the vision of making its place among the other modes of payment already existing, so much, so that in the long run it becomes the major mode of online (and offline payment as well thus credit cards are also its competitors. The disadvantages of credit cards for e-commerce include the fact that they cannot be used directly for small value payments or peer-to-peer transactions. Credit cards though are not without their disadvantages. Firstly, the relatively high transaction cost makes them impartial for small value payments, in which case subscriptions or advertising tend to be resorted to as a means of covering costs. Secondly, they cannot be used directly for individuals to make payments to other individuals (peer-to-peer transaction). Thirdly, protecting the security of transactions is vital. In most cases the cost of fraud falls largely upon the card issuer so card issuing companies have a strong stake in ensuring reliable security. From the security point of view, the main danger with using credit cards online is not interception but authentication. Initiatives are underway to tackle this issue and as it is the credit card companies that pay most of the cost of fraud it is likely that effective solutions will be put in place. In the present scenario, payments are traceable to a particular card and thus (fraud not withstanding) to a particular cardholder. In the virtual environment where privacy issues of even

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greater concern may subsequently arise, users may find that in certain circumstances they prefer the anonymity they enjoy with cash.

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OPERATING PROCEDURES: Secure money would be built aiming security, simplicity, robustness as the main issues to derive. SECURITY: For the time being, four major security issues would be taken care of: 1) Confidentiality: ensuring that data is not disclosed during transmission. To take care of this 128 bit SSL technology which encrypts data before transmitting the data through network using some private and public key encryption algorithm would be employed along with secure http transmission. SSL technology is now in very much use for securing ecommerce portals. It is developed by Netscape Communication but is now an open std and supported by the Netscape and IE browser, and all servers. Message digest and Digital id are the latest technology for message communication and authorization. We will discuss about this technology later in details. 2) INTEGRITY-ensuring that data is not modified during transmission. Message Digest or Crypto Hash would be used to prove that the readable portion is till exactly the same the sender wrote it. Combined with the packet sequences, this technique enables detection of modification, replaying and deletions within the data stream. 3) Authentication- ensuring that each user has a defined set of roles and privileges within a database. Oracle 9AS and Oracle 8 would be employed for the authorization purposes. SIMPLICITY: To make the operations of transfer and acceptances of money simple, secure money would use its money manager (a software) or the web-site itself. Money Manager would have simple design with familiarity with common messengers and other ICQ software. Also, the money manager would have a lot of other features like consultation. Any user before shopping online or investing money in some website or some purchase can check out other deals offered by other merchants. The user may chat before transferring money with the recipient. If both are online. Freeze his/her negotiations. Get stock price on buying/selling stock. However all these require the opposite end party too to be an esteemed member of our service. Our website would have the 3-tier architecture that provides the best performance scalability, lower maintenance and increased reuse of components. This architectures main idea is a very thin client and a consolidated server, which are easy to manage, if the configuration needs change it would not require disturbing the patches to the individual users. The standard browser of users desktop or mobile phones microbrowser would be the 1st-tier, which provide the user interface and the presentation service. The 2nd tier
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would be an application server that would provide business objects or on application(s). the 3rd-tier would be the database server that would provided data service and also data validation. The application server would do the major part of the job, application hosting and transaction management, security and session management and so on. As this application server would do the most critical jobs, the database load would be reduced to large extent. This would ensure integrity and security. Depending upon the demographically distributed load, a number of servers may be installed with the backup servers to provide an uninterrupted and continuous service. This model is also very scalable. Thus, to improve/increase the site performance adding new application servers mean a lot of performance improvement.

HTML Rendering engine

Database

User dependent Style sheet

XML Result

XML Query

Application Server

Server

Rendering engine WML 1st Tier 2nd Tier ( Application Server) 3rd Tier

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OSI ( OPEN SYSTEM INTERCONNECTION)

The working behind this project works on the 7th layer of OSI model that is the Application layer. How it works is explained below: Simply when a person would login into his own personal virtual money account with the unique user name and password, he would be able to see his money into that account. Now the procedure of logging in is that he would open an interface, he will put his information required on to the template; this information will be verified by the VIRTUAL MONEY data base servers. If this information would be authenticated only then he would be allowed to access his account. Now once he has logged in his can transfer points and any other transaction he wants. Once hell made any transaction the protocols will let the data base server know that a transaction is in process and then from the data base server a request would go to the application server and then this server will allow the transaction if the client has enough points in his account. After verification he will send a request to the data base server again informing it that this transaction is allowed. Data base server will make the required changes and then send the information to the client via particular protocols informing him that this transaction has been finished. This all working is done on application layer. the application server is required because this is not PEER TO PEER transaction in which all transactions are done directly.

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PERSONNEL TEAM:
a) Madeeha Salman b) Sana Akber Ali c) Anum Suleman d) Umair Farhan e) Mohd. Faizan Madeeha actually came out with the idea of secure money, Sana and Anum is involved in market survey and management, Umair is taking care of software and networking program and money manager development and all other technical aspects of the company, Faizan will be working with Omair to develop money manager and providing wireless support to the service. The project at hands need to be secure and robust instead of employing programmers to develop the same but (this would bring in additional costs of fixed assets, buildings, furniture etc) so not in initial stage, but the developments like this will keep on coming as the project will grow longer and longer.

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ASSUMED CAPACITY

The internet has many small business owners which are becoming multi-millionaire; the percentage of small business sites is just 37%. As nearly the 83% sites contain commercial content, the information is literally free. If these sites take up the method of micro-payments, then if there are approximately 2000 page views in 10% of the total number (considering important business information, share price, other information) of active web sites (more than 17 million) then with even 0.5 paisa per viewing the total revenue generated would be. 17,000,000 * 0.1 = 1,700,000 1,700,000 * 2000 = 3,400,000,000 3,400,000,000 * 0.5 = 1,700,000,000 paisa per day This means employing the money manager for this transaction and charging weekly at even 5% the daily revenue would be 1,700,000,000 * 0.01 * 0.05 = Rs850, 000 This is an approximate figure and only to reflect how the information provided by the different sites, if charged, even at such nominal rates, can generate enormous amount of revenue. This would compel web masters to provide updated and correct information which is really not easily found in today's internet world.

Revenue from micro payment E-commerce is driving the web forward and will see global e-commerce revenues rise from $963 billion this year to top the $4 trillion mark up till now. Access to the internet improves throughout the world; the number of active users will rise from over 230 million users to 640 million till this year. Even then, however, only 14 percent of the world's adults will be actively using the internet. With proper advertisement and marketing strategies, if, within one year span the Secure Money is able to generate even 10,000 hits per day and 5% of the internet users using credit cards then the revenue equations are as following, Assuming approximately rs6000 in the accounts of 50% of the users on an average, the total money pooled in the Secure Money account would be 230,000,000 * 0.05 * 0.5 * $50 = Rs287,500,000 Even with 5% internet on this sum of for one day would mean $287,500,000 * 0.05/365 = Rs40,000. Yahoo! gets more than a million hits per day. Google get nearly 6 billion search requests per day
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in the American traffic alone. With judicious investment on advertisement Secure Money would start generating traffic at the assumed 10,000 hits per day within months of its inauguration. The approximate income projections for one year is given below

Revenue from micro-payments: average of revenue per day (because there would be some time difference for the stability to be attained

$850,000 * 0.5 * 365 = Rs155, 125,000

Considering revenue from pooled amount$40,000 * 0.5 * 365 = Rs7,300,000

The total revenue in the first year Rs162, 425,000

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PRO FORMA INCOME STATEMENT

YEAR1 RS SALES DIRECT COST OF SALES TOTAL COST OF SALES GROSS MARGIN GROSS MARGIN % EXPENCES: PAYROLL SALES & MARKETING & OTHER EXP DEPRICIATION LEASE EQUIPMENT UTILITIES INSURANCE RENT PAYROL TAXES (6.66%) OTHERS TOTAL OPERATING EXPENSES EARNING BEFORE INTEREST & TAXES EBITDA INTEREST EXP TAXES INCURED (5%) NET PROFIT NET PROFIT/SALES 300000 96960 200000 0 49600 0 100000 19980 0 766540 (16540) 183460 0 0 (16540) -1.32% 500000 96960 200000 0 63731 0 100000 33300 0 964021 535979 735979 0 26798.95 509180.05 20.3% 1000000 96960 200000 0 81880 0 100000 6 6600 0 1545440 1454560 1654560 0 72728 1381832 27.6% 1250000 500000 500000 750000 60% YEAR2 RS 2500000 1000000 1000000 1500000 60% YEAR3 RS 5000000 2000000 2000000 3000000 60%

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PRO FORMA BALANCE SHEET

YEAR 1 RS ASSETS: CURRENT ASSETS CASH OTHER CURRENT ASSETS TOTAL CURRENT ASSETS LONGTERM ASSETS ACCUMALATED DEP TOTAL LONG TERM ASSETS TOTAL ASSETS LIABILITIES & CAPITAL: CURRENT LIABILITIES A/P OTHER CURRENT LIABILITIES SUBTOTAL CURRENT LIABILITIES LONG TERM LIABILITIES TOTAL LIABILITIES PAID IN CAPITAL RETAINED EARNINGS EARNING TOTAL CAPITAL TOTAL LIAB & CAPITAL 301250 2550000 (1250) (16540) 2532210 2833460 301250 0 301250 1983460 0 1983460 1050000 200000 850000 2833460

YEAR2 RS

YEAR3 RS

3025608 0 3025608 1050000 400000 650000 36756080

4958714 0 4958714 1050000 600 000 450000 5408714

392510 0 392510

471415 0 471415

392510 250000 459568 5091805 5392753 36756080

471415 250000 1005467 1381832 49 37299 5408714

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PRO FORMA CASH FLOW

YEAR 1 CASH RECEIVED Cash sales RS 12, 50,000 YEAR 2 RS 22, 50,000 YEAR 3 RS 50, 00,000

Subtotal cash from operations Additional Cash Received Sales Tax, VAT, HST/GST Received New Current Borrowing New Other Liabilities (interest-free) Long-term Liabilities Sales of Other Current Assets Sales of Long-term Assets New Investment Received Subtotal cash received EXPENDITURES: Cash spending Bill payments Subtotal spent on operations Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out Principal Repayment of Current Borrowing Other Liabilities Principal Repayment Long-term Liabilities Principal Repayment Purchase Other Current Assets Purchase Long-term Assets Dividends Subtotal cash spent Net cash flow Cash balance

12, 50,000

22, 50,000

50, 00,000

0 0 0 0 0 0 0 12, 50,000

0 0 0 0 0 0 0 22, 50,000

0 0 0 0 0 0 0 50, 00,000

3, 00,000 11, 50,000 14, 50,000

5, 00,000 14, 00,000 19, 00,000

10, 00,000 17, 00,000 27, 00,000

0 0 0 0 0 0 0 14, 50,000 (2, 00,000)

0 0 0 0 0 0 0 19, 00,000 3, 50,000

0 0 0 0 0 0 0 27, 00,000 23, 00,000

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STATISTICAL DATA

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STATISTICAL DATA ON INTERNET AND CATEGORIES OF PEOPLE WHO WANT OR DO NOT PREFER TO USE CREDIT CARDS FOR ONLINE TRANSACTIONS

80% 70% 60% 50% 40% 30% 20% 10% 0% YES NO

90 80 70 60 50 40 30 20 10 0 YES NO female male

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Although the statistics are a little old. It goes in favor of the argument that presently the number of credit card users are increasing and not decreasing. The figures show that nearly 75% of people are willing to use credit cards. The 25% are not willing to use credit card due to: Extravagance noticed among credit cards users The huge amount of interest to be paid to the cards issuing companies if the monthly installment is not paid in time Fear of loss in case card is stolen Lots of formalities related to credit card

Inspite of all these number of retail outlets and internet websites are considering credit cards as major mode of payment and credit card users are increasing. However the interest rates and some of the other disadvantages like not supporting micro payments and other issues of credit cards have created a field where catering some other alternative will surely be welcome.

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USER SURVEY ON WILLINGNESS TO USE CREDIT CARDS ON THE WEB

90 80 70 60 50 40 30 20 10 0 YES NO 1 year 1-3 year 4 year

WILLING TO USE CREDIT CARD ON NET

100 90 80 70 60 50 40 30 20 10 0 YES NO NOVICE INTERMEDIATE EXPERIENCED EXPERT

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These Figures show the distribution of credit card users among novice, intermediate, experienced and expert persons. From these a conclusion can be drawn that: The percentages of novice not willing to use credit cards are more. For some reason( assumable the process involved in the issue of a card and the losses which may occur in case the card is lost or stolen) If these people may be concerned how securemoney provides competitive edge terms of security and simplicity, then a considerable percentage of people from this categorywould become a customer of securemoney. The percentage of people willing to use the credit cards is more among intermediate, experienced and most among expert people. These people understand the advantages of newer technologies and welcome them. Thus securemoney would be welcomed by these categories of people

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