TechHorizon

BUSINESS PLAN

Business Plan Prepared By:

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 Table of Contents

TOPIC PAGE NO.

EXECUTIVE SUMMARY 5
Our mission 5
Venture Description 5
Venture Organization 5
Venture market 5
Venture operations 6
Stage of development 6
Financials 6
Funds sought 6

COMPANY DESCRIPTION 7
Company mission 7
Products/ Services 7
Corporate philosophy 7

PRODUCT/SERVICE 8
Product description 8
Purpose 8
Technological background & implication 8
overview
Benefits offered 9
Stage of development 10
Future research & development 10
Limitations/liabilities 11
Production 11
Facilities 11
Suppliers 11
Environmental factors 12

INDUSTRY ANALYSIS 12
Size of the industry 12
Key trends 12
Future of RFID 12
RFID in INDIA 13
Target industry snapshots 13
Target market 16
Customer profile 16
Corporate strategy: the initial customers 16
Airports 18
Shipping companies 18

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Offices 19
Educational institution 20
Banks 21
Libraries 21
Tracking companies 22
File management 22
Stock management 22
Retail stores 23
Courier postal services 23
Museums 23
Penitentiaries 23

COMPETITIVE ANALYSIS
Strategic position & risk analysis 25
MARKETING PLAN 26
Marketing approach 26
Pricing profile 26
Making of RFID equipments 26
Employee’s salaries 26
Utility payments 26
Lease expenses 26
GROSS MARGIN ON 27
PRODUCTS/SERVICES
MARKET PENETRATION 28
Sales representatives/direct sales force 28
Direct mail/telemarketing 28
Advertising & promotion 28
Activity 28
Service & warranties 29
Future markets 29

OPERATING & CONTROL SYSTEMS 29

Receiving orders 29
Billing the customers 29
Paying the suppliers 30
Collecting the account receivables 30
Reporting to management 30
Staff development 30
Inventory control 30
Handling warranties & returns 30
Monitoring the company budget 30
Security system 31
Document & paper flow 31

PLANNING CHART 31

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Product/service description 31
Manufacturing 31
Financial requirement 32
Marketing flow chart 32
Management & infrastructure 32

TECHNOLOGY PLAN 33
MANAGEMENT 33
Management team 34
Organizational chart 34
Development & growth plan 35
Offering to market 35
Expansion to product base 35

FINANCIAL PLAN 37
Sales projections 37
Income projections 37
Cash requirements 37
Sources of financing 37

START-UP FUNDING & 38

EXPENDITURES
PROJECTED CASH FLOW 38-41
STATEMENTS
YEAR – I 42
YEAR – II 43
YEAR – III 44
Bibliography 48

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 Executive Summary

The Concept:
Industries are growing and changing at a rapid rate. New technologies offer Opportunities and
challenges to traditional businesses. Keeping pace with this vibrant environment is vitally
important to compete in the fast-moving marketplace. Business owners have always sought
viable solutions to increase hassle free security regarding assets and personnel within their
organization along with augmenting efficiency in manufacturing, customer satisfaction, accuracy
in activity logs and valuable customer data which combine to help position themselves to attain
their ultimate and timely advantage.

Our Mission:
We strive for a reputation that signifies our pioneership and excellence in providing low cost,
state of the art solutions leading our clients to achieve the desired levels of operational efficiency,
amplified productivity and automation by eradicating resource wastage and providing them a
secure environment, inducing competitive advantage, value addition to business processes
coupled with facilitating the achievement of their business objectives.

Venture Description:
Tech Horizon is Uttar Pradesh’s first RFID based tracking system provider company and is
poised to offer a multitude of tracking solutions. We believe organizations must leverage
technology in their respective paradigms of workplace and production to gain security,
automation, efficiency and eventually competitive advantage in today’s competition driven
world. Being both product and service oriented, we are the first company that offers RFID based
implementations in the state.

Venture Organization:
Our management team consists of CEO Mr. X, CFO & Marketing Director Mr. Y, and CTO Mr.
Z. As all three member are having good technical background this will be advantage to company

Venture Market:
Our target market consists of growing privately or publicly held businesses with annual
sales/revenues of at least Rs. 5 million. We prefer to serve companies that have a well established
IT infrastructure and will primarily target businesses in the retail, education, banking, shipping,
tracking, utility and medical sectors. The broad spectrum of our target market consists of
companies that have more than 50 employees and are seeking office automation primarily in
terms of operations, file management, asset tracking, employee attendance and tracking, and
other security, efficiency related measures. Being the first to introduce RFID services in Uttar
Pradesh, Tech Horizon faces no competition within the country making available expanded
opportunities to gain a large chunk of corporate customers and be an early market leader.

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Venture Operations:
Tech Horizon’s business objectives include:
• Growing to a product base until the end of our fifth year of operations
• Becoming recognized as one of the top RFID solutions providers of South Asia
• Building a highly profitable agency that delivers excellence backed by sound
business processes

Stage of Development:
We plan to start operations as soon as financial needs are met. In the meanwhile, we are
developing proposals/reports for our potential clients (mainly large organizations) in order to
brief them about the benefits and opportunities that could be reaped from implementing
RFID.Our technology is fully developed into a working prototype and has been tested at a
multitude of different conditions and factors to check its reliability. Right now RFID consists of
only one module which is general in nature and is thus designed to trace anything. The team is
working on the development of modules to specifically address the needs of the various
categories of clients like medical facilities, banks, offices, libraries, educational institutes,
manufacturers and retailers.

Financials:
The financial strategy of Tech Horizon emphasizes retaining most of the income for the first
three years to support operations and liquidity. The company expects steadily increasing profits
and sales in the first three years and then a higher degree of growth in the years to come, making
it more financially sound and lucrative for the investors. Annual revenue projections for the first
three years are Rs. 7,70,000, Rs. 13,40,000 and Rs. 19,55,000.

Funds Sought:
We have a partnership of three people who will invest Rs 100000 each amounting to Rs 300000
and rest Rs 500000 will be taken as loan from bank at the rate of 12% annually for the period of
36 month ,to pay amount of loan taken we will have to pay EMI of Rs.16600 per month for the
period of 36 months

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 Company Description

Tech Horizon is a Lucknow based venture proposed by a group of three students Mr. X, Mr. Y
and Mr. Z. The company is the sole owner of Uttar Pradesh’s first Radio Frequency based
tracking system and is continuously involved in research in order to design its various modules
for different implications.

The Company’s Mission:

We strive for a reputation that signifies our pioneership and excellence in providing low cost,
state of the art solutions leading our clients to achieve the desired levels of operational efficiency,
amplified productivity and automation by eliminating resource wastage and providing them a
secure environment, inducing competitive advantage coupled with facilitating the achievement
of their business objectives.

Products/Services:
We offer our customers practical and highly affordable business solutions through the cheap and
revolutionary technology of Radio Frequency Identification that will help them achieve desired
levels of security and automation enabling them to eliminate theft and wastage of valuable
resources (mostly time, inventory and equipment) and keep an accurate record of assets,
activities, operations, transactions and customers leading them to achieve a competitive
advantage over rivals and realize a higher degree of efficiency organization wide. The company
will cater to the surging requirements of the corporate, retail, education, banking, shipping,
tracking, utility and medical spectrums for automation that leads to substantial reductions in
costs, resource wastage and a potent increase in efficiency. The implementations are limitless and
vary from an individual retailer who needs to keep track on inventory to corporate clients that
require increased security and efficiency related to their unique products and services; movement
of personnel, equipment, machinery and other valuable assets.

Corporate Philosophy for Doing Business:

Tech Horizon’s goal is to become a perceived standard by its customers for providing solutions
pertaining to automation and security. This can be achieved by following a two pronged strategy
of being both product and service based by being service based initially and then growing to a
product based level as soon as sufficient knowledge and experience pertaining to the needs of
particular categories of clients and real time implementation issues is acquired in order to build
standardized products. A complete transition to a product based level is not lucrative as the
emergence of new RFID based solutions is continuously on the rise leading to the loss of
valuable business opportunities. It is imperative to start with a target market of medium and large
size businesses and then gradually probe the relatively small enterprise segments as small
businesses mean many clients and therefore a high probability of paucity in efficient problem
solving when the demand from begins to rise. A great deal of experience and resources in terms

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of employees, equipment and money have to be in easy access most of which can be generated
by value and monetary streams from the smaller but relatively resourceful segments of the target
market. Furthermore, small sized businesses have a tendency to be rigid when it comes to hidden
costs related to implementations while such problems can be least expected from the corporate
side. This leads to our objective of being more inclined towards a service orientated approach
when it comes to medium and large size businesses while following a product based approach for
small size businesses.

Product/Service
Product Description:
RFID is a system created by the combination of Radio Frequencies and databases used for
tracking and keeping a check on the movement of objects and humans within a specified
location. The system being free from all external dependencies is a combined prototype of
hardware and software, both which have been completely designed and developed by the Tech
Horizon team. It is both Active and Passive RFID based thus being able to work on long and
short ranges. The hardware consists of “RFID Reader” which reads IDs and Tags (that have
unique IDs for objects and persons) in the surroundings. The Software Agent maintains logs and
conducts mapping of ids on the Map on a computer screen provided by a World/Country/City
Map Manager. At present time, there is only one module of the software which is general in all
reverence i.e. it is designed to trace anything. The product addresses the needs of businesses,
related to automation and security involving personnel and assets while entailing opportunities to
reap insurmountable profits and benefits obtained through the data collected by it.

Purpose of Product/Service:
In general terms, RFID solutions assist clients to achieve desired levels of security and
automation enabling them to eliminate theft and wastage of valuable resources (mostly time,
inventory and equipment) and keep an accurate record of assets, activities, operations,
transactions and customers leading them to achieve a competitive advantage over rivals and
realize a higher degree of efficiency organization wide.

Technological Background and Implicational Overview: Radio Frequency Identification

(RFID) is an automatic identification system combined with databases. The purpose of an RFID
system is to enable data to be transmitted by a portable device, called a tag, which is read by an
RFID reader, and processed according to the needs of a particular application. The data
transmitted by the tag may provide identification or location information, or specifics about the
object/product/individual tagged, such as name, price, color, date of purchase, etc. In a typical
RFID system, individual objects are equipped with a small, inexpensive tag which contains a
transponder with a digital memory chip that is given a unique electronic product code (EPC).
The interrogator or an RFID reader, an antenna packaged with a transceiver and decoder, emits a
signal activating the RFID tag so it can read and write data to it. When an RFID tag passes

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through the electromagnetic zone, it detects the reader's activation. signal. The reader then
decodes the data encoded in the tag's integrated circuit (silicon chip) and passes it to the host
computer for processing.

The Benefits Offered:

RFID systems have a broad range of usage offering a myriad of benefits. Some of them are: -
i) Cost Reduction: The cost reduction value case is a target area of many consumer packaged
goods (CPG) companies, retailers and military departments. These enterprises strive to reduce
inventory and inventory management expenses by billions of dollars on a continual basis. The
cost-reduction benefits resulting in the implementation of an RFID program include: -
• Lower inventory stock levels
• Reduced waste
• Reduced manual checks
• Reduced inventory handling costs
• Reduced logistics costs
• Reduced claims and deductions
• Improved asset utilization
ii) Increased Revenue: Worldwide, both large and small retailers and manufacturers are
developing RFID deployments to drive sales. The utilization of RFID empowers companies to
design innovative solutions with tangible benefits, including:
• Reduced out-of-stocks
• Improved order fill rates
• Reduced shrinkage
• Improved inventory turns
• Enhanced in-store customer support
iii) Counterfeit Product Shielding: Quality manufacturers across the globe are losing sales,
profits and their quality image from the expanding flow of counterfeit products. Equally
important, counterfeits of many products (such as pharmaceuticals, currency, passports and
aircraft parts) represent a safety and security hazard for humanity all across the planet. There are
several pilots in place to identify counterfeits using RFID. These RFID tagged products, coupled
with real-time databases, represent a viable information platform to prevent the distribution and
sale of counterfeit products.
iv) Shrinkage of theft and Diversion Prevention: High-value consumer and industrial products
face the large risk of theft and diversion. RFID has shown considerable progress in:
• Identifying theft and diversion at the shelf level
• Identifying theft and diversion points in the supply chain
This technology will provide a widely used tool to prevent theft along the supply chain–from the
factory floor to the storefront.

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v) Competitive Advantage: Any business case or profit improvement program is intertwined
with a company’s business goals and competitive advantage. Several leading companies believe
that RFID is the key to increasing competitive advantage. The advantages include:
• Increased distribution center productivity
• Increased yield per end user, customer or site
• A flexible, adaptive supply chain
• Cost advantage in logistics
• Reduced impact of homeland security measures (e.g., country of origin)
vi) Superior Info: RFID enables business owners to have real-time access to inventory
information, as well as a broader, clearer picture of consumers' buying habits. It also enables
retailers and corporations to peek into the lives of consumers in ways that were initially off
limits. Products embedded with RFID tags can continuously transmit information ranging from
an EPC identifier, to information about the item itself, such as consumption status or product
freshness. Data processing systems read and compile this information and can even link the
product information with a specific consumer. Such composite information is vastly superior—
and more invasive—than any data that could be obtained from scanning any other technology as
RFID systems enable tagged objects to speak to electronic readers over the course of a product's
lifetime—from production to disposal—providing retailers with an unblinking, voyeuristic view
of consumer attitudes and purchase behavior.

Stage of Development
Until now, Tech Horizon is just an idea therefore there is no physical asset owned by it. This
business is a brainchild of three students, that combine to make a sturdy educational, creative,
professional and entrepreneurial combination necessary to build a resoundingly successful
business. We plan to start operations as soon as financial needs are met. In the meanwhile, we are
developing proposals/reports for our potential clients (mainly large organizations) in order to
brief them about the benefits and opportunities that could be reaped from implementing RFID.
Our technology is fully developed into a working prototype and has been tested at a multitude of
different conditions and factors to check its reliability. Right now RFID consists of only one
module which is general in nature and is thus designed to trace anything. The team is working on
the development of modules to specifically address the various categories of clients like medical
facilities, banks, offices, libraries, educational institutes, manufacturers and retailers.

Future Research & Development:

The organization will conduct a formal year-end customer satisfaction survey within the client’s
organization to address its information requirements pertaining to the additional needs and
suggestions by services being ranked on the basis of responsiveness, accuracy, quality, results
delivered and the value added to the overall security, efficiency, and automation of the company
served. The team will continuously stay in touch with clients in order to resolve conflicts and
problems and to update systems with new developments. In addition, a continuous market study

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for emerging deployments and possible applications is and will be in progress for the purpose of
identifying new markets and thus widening the customer base.

Limitations/Liabilities
• There is a probability of bugs in the software, which most of the times are only discovered in
real time implementations and take a while to be fixed. At times, some bugs can lead to data
corruption of which Tech horizon can be held liable for.
• Active RFID tags (not used as much as passive tags) have a limited battery life.
• While we strive for measurable results, we provide a service/product that in some instances
cannot be fully guaranteed. We must be careful in what we promise and be certain to provide
accurate and efficient service, clearly define the boundaries of the system during its development
and continuously monitor the programming codes of our modules for potential errors.
• Issues of privacy have emerged in the RFID industry.
• Employees of the client organization will need training in order to get familiar with the use of
our product.

Production
Internal staff will handle production work. At present time there is no need for any specialized
production as all parts are easily available in Noida at the STPI Noida, LOGIX Techno Park -
Sec- 127, Expressway, Noida, from where they will be bought and assembled manually. On the
acquisition of a large contract which could not be handled by internal staff, the job would be
considered to be handed over to a subcontractor.

Facilities
Tech Horizon pursues to establishing a leased office located in the area of Aliganj, Lucknow. A
1500 square feet edifice is more than adequate for a staff of three and can easily accommodate up
to 8 personnel with the right phone system room upgrade and investments in professional
cubicles, four unbranded computer systems, along with a separate room for the assembling of
tags and transponders.

Suppliers:
There are suppliers of electronic hardware required in Noida at the STPI Noida, LOGIX Techno
Park - Sec- 127, Expressway, Noida .The supplier that provides raw materials with the lowest
price and a reasonable quality in parts would be selected signifying the fact that there cannot be a
permanent one. Preferences would be built after a significant amount of experience.

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Environmental Factors:
The organization is in the startup stage and the product poses no threat to the environment. There
have been innumerable debates on the effects of GSM chips (which emit radio frequencies) on
the human body and health of which most have been proved by research. Majority of the RFID
tags involved in the implementation will emit radio frequencies that will be fractional to the
frequencies produced by GSM chips thereby minimizing any harm to the human body.

Industry Analysis & Trends

Size of the Industry
In 2009 IDTechEx, a research firm, estimates that the value of the entire RFID market will be
$5.56 billion, up from $5.25 billion in 2008. This includes tags, readers and software/services for
RFID cards, labels, fobs and all other form factors. The majority of this spend is on RFID cards
and their associated services - totalling $2.99 billion. In total, 2.35 billion tags will be sold in
2009 versus 1.97 billion in 2008; 1.74 billion in 2006 and 1.02 billion in 2005.
Key Trends:
• The industry is fragmented but showing some signs of consolidation.
• The barriers to entry are gradually increasing, but they are still low.
• Competitor rivalry is high in some segments.
• In general, customers have significant bargaining power over suppliers.
• Price pressure is severe but decreasing gradually.
• There is growing interest in RFID for homeland security, retail and logistics with multi million
dollar enterprises taking steps for broad, in depth applications.
• There are near to 700 medium and large size companies offering RFID solutions.

The Future of RFID

Currently, RFID tags are not widely used in consumer products because the price of the tags is
still prohibitively expensive for retailers to use it in masses. However, as technologically
ambitious companies push for enhanced means of tracking products and profiling consumers, the
increased demand and production of RFID technologies will drive down prices. Already,
developments are yielding systems with larger memory capacities, wider reading ranges, and
faster processing. In response, the market for RFID tags is growing explosively, projected to
reach $10 billion annually within the decade. In spite of the costs, some retailers are willing to
pay the price for the insight RFID tags provide into the lives of consumers.A handful of
corporations have already signed on, and are moving ahead with plans to embed products with
RFID tags. Not too recently, Microsoft Corporation announced that it would develop software
that will enable retailers, manufacturers, and distributors to use RFID tags to track goods within
stores and factories, as well as programs specifically designed to use the new retail tagging
technology.

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RFID in India
Retailers, textiles, aviation, energy and auto sectors in India are switching to this new concept
over the last 5 years after seeing the results of implementation in the developed world. This is
also necessitated by pressures on them by suppliers from abroad to comply with global business
practices, failing which they run the risk of being left behind.

Infosys Technologies is a founding member of EPC and Wipro technologies have been
associated with Auto-ID Lab at MIT for some years now. Both these companies play a big role in
the EPC which provides standards for implementation of the technology.

Similarly, Gemini Traze RFID Pvt Limited is building India's first RFID tag manufacturing unit
at Sriperumbudur Electronic Park near Chennai. It plans to roll out 45 million units which would
be increased to 100 million units per year later on .

One of the main companies that is testing this technology is Kishore Biyani's Future group,
especially at Pantaloon and Big Bazaar. Pantaloon has piloted an RFID project at one of its
warehouses in Tarapur using more than thousand RFID tags . It selected a few lines of apparel
for the RFID pilot project. The application was developed by Wipro Infotech and integrated
Oracle database also. Nowadays, we can see the major retailers having a plastic flying saucer
shaped knob like structure on dresses while on display at the store which are removed when they
are billed. This helps in tracking of goods and security from pilferage as it lets out an alarm at the
exit door if not billed properly.

Madura Garments also experimented with RFID and has incorporated them in their Planet
Fashion stores as well as factories and warehouses. The national carrier Air India is planning to
use RFID for tracking capital assets. Leading oil companies have begun pilot tests to use RFID
for LPG cylinder tracking, The Indian railways is also thinking on these lines for tracking
wagons and containers. Maruti Udyog Limited has been using RFIDs for component and spare
parts tracking for some time now at their Gurgaon plant. Ashok Leyland is also using this for the
same purpose. It has tremendous advantages as there are more than 20,000 parts in most vehicles
and tracking the movement of each one of them through the supply chain is a mind-blowing task.
Mahindra & Mahindra are also using RFID in car some of the manufacturing processes like
Pretreatment of Body Shell and Electro-deposition that are done in harsh conditions. In the
pharma sector, Ranbaxy Labs and Pfizer use it for counterfeit protection. Airport Authority of
India is considering RFID for the cargo and passenger goods management.

Outside of retail and auto sectors, libraries like Jayakar Library of Pune University and
Dhanvantri Library of Jammu University have adopted RFID. Hyderabad Central University has
introduced RFID embedded degree certificates. The municipal corporation at Hyderabad in 2006
had introduced RFID usage for keeping track of garbage collection & disposal trucks and their

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drivers to monitor them due to instances of reported malpractice in collection & disposal.
Applications are there in healthcare where new born babies can be RFID tagged so that they are
properly monitored in hospitals. It can be used to improve security and in military uses for
proper tracking of supplies to the armed forces. There are applications possible in
Electricity/Water meters which can help make the manual recording and reading automatic,
remote and fault free. The applications are enormous and far-reaching, and India has just started.
Target Industry Snapshots
As RFID addresses a global array of business applications, there are dozens of RFID
deployments and pilots around the world today. A short list of examples would include: -
• Retail supply chain
• Military supply chain
• Container tracking and management
• Pharmaceutical management and tracking
• Automated payment solutions
• Baggage tracking and management
• Vehicle, paper and aircraft assembly
• Asset tracking
• Document tracking
The highlights of some of those pilots are shown below: -
a) Retail Supply Chain: The power behind a hassle-free shopping experience is radio
frequency identification. RFID is helping retailers around the world improve customer
satisfaction and increase sales. The technology is transforming the retail industry by store
productivity and loss prevention. Many of the world's largest retailers have mandated
RFID tagging by 2005. This move affects more than 200,000 manufacturers and
suppliers, driving the worldwide market for hardware and software to support RFID.
Retail interest in RFID technology is driven by the desire of companies to achieve greater
speed and visibility into their supply chains, with the goal of increasing both operational
efficiency and store effectiveness. An efficient supply chain operation ensures that goods
can be delivered to the place and time when consumers are ready to purchase. Potential
gains from the visibility RFID generates include lower inventory levels, reduced labor
costs, increased sales and numerous other benefits in the long run.

b) Benefits of Speed
• Eliminate lost sales due to out of stocks
• Speed up store receiving, processing, replenishment plus point of sale
(POS) and returns processing
• Notification of units needed on sales floor upon store receipt
• Satisfy customer requests immediately by locating products on sales floor
and in the backroom
• Fast, accurate inventory audits

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 • Increased distribution center efficiency and accuracy
Benefits of Visibility
• Unit, carton and pallet-level visibility throughout supply chain
• Immediate identification of exceptions at check points
• Visibility to replenish the right product to the right place at the right time
• Block defective and counterfeit merchandise
In the near term, the emphasis for RFID is on applications, which involve “the supply chain to the
store backroom” — tagging pallets, cartons and reusable containers to track the movement of
goods throughout the distribution system.
c) Manufacturing: Proprietary RFID-based solutions have been used for a decade in the
manufacturing space. One of the established uses is in the automobile manufacturing process.
Automobile companies attach read/write RFID tags to the car chassis. The RFID tags provide
direction to and record the completion of each assembly process. Other manufacturers are
working hard to exploit the potential of RFID in their operations. Example benefits that
manufacturers have identified include: -
• Fast assembly
• Identification and elimination counterfeiting
• Improved accurate/reactive production planning
• Reduced stock/work in process (WIP), increase make-to-order
• Reduced efforts on stock counts
• Reduced product recall costs
• Correct parts identification, reduced maintenance
• Accurate and real-time inventory
• Accurate packing list and invoice information
• Cheaper disposal
• Tighter linkage to distributors
• Safer products
• Improve manufacturing processes and inventory control
• Protect brand values

Linking the Manufacturing Floor to the Retail Floor: Real-Time Inventory

Several manufacturers today are experimenting with RFID-based tagging of higher-value
merchandise. Examples include consumer electronics and pharmaceuticals. The concept is to
audit the RFID tagged inventory on the retail floor and use that information to drive
manufacturing and shipping of the completed product. In summary, RFID gives the producers
total visibility into the movement throughout the supply chain. Relationships with retailers
provide powerful incentives for offsetting some of the costs, with the agreement to share
information with these valued trading partners.

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c) Transportation and Logistics: The logistics sector is positioned to be one of the primary
beneficiaries because of the adoption of RFID into the supply chain. It is important to recognize
that the RFID compliance mandates generated by Wal-Mart and others supply chain behemoths
address the receipt of merchandise and assets into these large enterprises. For the logistics
industry, with its position between suppliers and customers, RFID tagging and the underpinning
mandates represent a great opportunity to expand the portfolio of offered services.
Opportunities in logistics include: -
• Working with shipping customers to provide RFID compliance services that solve the
compliance challenge
• Expanding service and revenue base to suppliers and customers by using the RFID tags to
define new information based services as a source of competitive differentiation
• Looking at using EPC in cross-docking operations to increase efficiency
• Faster delivery turnaround
• Faster custom clearance
• Theft prevention
d) Distribution Center Operations: EPC-RFID based applications have drawn extensive
interest in the operation of the distribution center. Innovators argue that RFID technology can
make distribution centers more cost effective. Studies suggest the following the operational
improvements through RFID: -
Shipping and Receiving
• Automated processing of loading and unloading
• Reduced labor requirements
• Faster processing
• Automatic cross docking
• Automatic generation of 100 percent accurate electronic manifests
• Storage and Fulfillment:
• Correct product storage locations
• Faster product retrieval
• Fewer order errors
• Reduced losses and shrinkage of assets
• Improved order-fill rates and times
• Less safety stock required
Task and Resource Management
• Automatic updating of tasks for each resource
• Improved automation and accuracy of flow control
• Improved real-time monitoring of operations
• Automatic conveyance and sorting
• Automated and accurate picking and packing

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A primary objective of RFID-based systems is to provide real-time visibility into all of the
supply chain. To achieve that end, the distribution center needs to be part of the real-time, RFID-
enabled supply chain.
Target Market
There are about 100,000 small-scale and medium units in UP and the state ranks fourth in the
country in the number of SME units. Some of the running clusters in UP include, sports goods
(Meerut), glass work (Shikohabad/Ferozabad), leather footwear (Agra), locks (Aligarh), carpets
(Bhadohi/Varanasi), apart from this all educational institutions and hospitals are also our target
market .Armed with a technology which has a large scope of applications the world over, Tech
Horizon is targeting medium and large organizations that fall in the following markets: -
Applications Market
 Automobile Immobilization
 Attendance systems
 Baggage Handling Health Care Services
 Fixed-Asset Tracking Government
 Library Systems Banking
 Educational Institutions
 Point of Sale (POS)/Plastic Money Retail In-Store
 Real-Time Location Systems (RTLS) Commercial Services
 Security/Access Control Industrial/Manufacturing
 Personnel tracking Transportation/logistics
 Supply Chain Management
 Transportation/Ticketing
Customer Profile
Tech Horizon’s ideal customer is a privately or publicly held company with annual
sales/revenues of Rs. 5 million at least. We prefer to serve companies that have a well established
IT infrastructure. Though our venture serves a variety of customers, we specialize in serving
companies that pursue personnel and asset tracking. Our largest clients are those organizations
that have a large number of employees or those which belong to the industries of card banking,
manufacturing, retailing, supply chain, logistics and health care. Our smaller clients include
educational institutions, libraries, commercial services, museums, and organizations that are
willing to pursue efficient file management and attendance systems.
Corporate Strategy: The Initial Customers
Tech Horizon aims to introduce revolutionary tracking solutions in Uttar Pradesh and dominate
the market by being both product and service oriented thus enabling itself to continuously
introduce innovatory uses of RFID technology for corporate and individual customers. Being a
new technology in India, we have an opportunity to create the market. As the scope of RFID is
almost limitless, overall market potential has still to be determined. Critical to the corporate
strategy is the continuous development of modules of our software that would be purely designed

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for specific implications in different industries/sectors/businesses/institutions. These include
modules for: -
Medical Facilities: Medium and large sized medical facilities can also benefit from the
widespread applications from RFID. Tags can be embedded into wristbands for patients and in
ID cards for employees. Such solutions will not only meet immediate needs, but will also deliver
the flexibility to explore further unnoticed opportunities.
With the introduction of RFID, medical facilities will have the following benefits: -
• Solutions to track employees and patients with all medical history and personal/official
statistics/information being recordable into a single chip which can be synchronized with
databases whenever needed.
• The reader when waved over patient’s wrist will bring up the problem list, medical history,
patient information, medications, allergies and other critical information thus simplifying patient
identification and save clinical - staff keystrokes.
• Elimination of the bulk of paper forms while ensured up to date information for the medical
staff. Having such a system in place, there will be a dramatic reduction of errors in drug
prescription, increased hospital security and a prevention of patient identity mix-ups while giving
patients the opportunity to replace tags (that with contain all their medical history) for health
files that have to maintained and produced in an appointment.
• Faster emergency treatment as a result of enabling hospital personnel to gain access to patient
records more quickly making the handling of administrative tasks simpler than with the paper-
bound system.
• The availability of accurate information without any lag time as staff will no longer have to
return to a nurse’s workstation to obtain patient data.
• Convenience of updating information across work shifts allowing caregivers to spend more
time with patients and less on administration.
• Access for doctors and nurses to a new platform for wireless database to order lab tests, enter
notes on treatment, update medication administration right from the bedside, and so on.
• More efficient billing and pharmacy information systems.
• Solutions to track blood for transfusion and monitoring surgical instruments.

Airports: The business case for airlines is simple: no one likes to lose their bags. Baggage
handling has always been a potential predicament for airport personnel. Current processes are
typically driven by barcodes, but still involve a lot of manual loading and sorting, which leaves
plenty of margin for error. The advantages of RFID over barcodes in this application are that it is
contact less and unidirectional. An RFID baggage module can assist in real-time tracking of
baggage through the numerous legs of origin to destination. By tagging baggage with economical
passive RFID chips, containing all information regarding the baggage such as weight, owner’s
name, owner’s passport number, ticket number, flight number, airline etc., linked to a central
database used by all domestic airports, the flow of baggage traffic can be managed in an
amicable way. Capturing the bags that have been loaded on a manifest and matching them

18
against the expected manifest in real time (as bags are loaded) is enabled through the processing
within an Event Engine pipeline checking for misplaced bags. Also, transponders mounted at
various locations in the airport or used through handhelds by security personnel would assist in
the tracking of baggage if it is lost or sought for and will play an active role in owner
authentication at exit points combined with eliminating the possibility of evasion of any luggage
from scans/checks. Due to its high volume of data, generated from the number of units moving at
any one time and the number of events each bag generates, RFID has the scalability for airport
deployment on a national scale.The types of events include:
 Bags arriving at check-in
 Passing through security
 Being loaded into a tagged container
 The container being loaded onto an aircraft
 Being unloaded at its destination or intermediate stop
 Bags for the current destination removed from container, new bags loaded into the
container
 Final arrival
 Final unload of the containers
 Final bag unloading
 Bag routing and passing into arrival hall
India comprises of 92 airports and out of which 12 are international airports
.
Shipping Companies: Registers have to be manually maintained in order to record the arrival
and departure of containers/trailers at the entry and exit points of ports/depots/shipment
companies. At most places, the data is then digitized by computer input. RFID tracking solutions
can prevent this lethargic activity by fixed transponders at entry and exit points. Fitted in every
vehicle/container and relevant data fed into them, the read/write tags will communicate
information (such as vehicle number, type, time entered) as they pass through the transponder’s
electromagnetic field which then would be automatically fed into the computer in an organized
database. This way vehicle activity would no longer need to be recorded manually at gatehouses
thereby saving time and massively improving efficiency and trailer management on site. Port
personnel can use RFID to track containers through each stage of the shipping life cycle, from
warehouse distribution and container stuffing to transport and arrival at the final port destination.
In conjunction with a fully automated sorting system, shipping companies will be able to benefit
from an integrated delivery, sorting and dispatch system, improving both delivery times and
efficiency.
India currently has 12 major ports and 184 minor /intermediate ports spread across the
vast coastline of 7517 kms. They handle almost 90 per cent of India’s total foreign trade.
.

19
Offices: Companies having large premises face the problem of tracking employees at the time of
need. These situations result in problems in the form of lost opportunities and time. A setback of
employee incompetence also hovers in the shape of not being at the seat, misstatement of
overtime, coming late etc. There is also a major concern for security with regard to the entrance
of unauthorized personnel in the building and its sensitive domains.

By implementing RFID, organizations can: -

• Setup employee domains: For example, a salesperson of the bank cannot enter (go through the
automatic entry door operated by a transponder) the vault due to the authorization level set in the
tag embedded in his employee card.
• Establish an efficient attendance system: Employee diligence and pay can be measured
easily if the date and time of the arrival of an employee in the organization/department is
recorded automatically by a transponder and added into the payroll database.
• Maintain an effective payroll system: Overtime would be paid fairly when the time of
employee departure would automatically recorded by transponders.
• Locate where an employee is in the premises: Since transponders would be mounted at
several locations in the premises, the location of individual employees can easily be tracked
down by using our user friendly software which would help finding people at the nick of time
thereby reducing the probability of lost opportunities and time wastage.
• Curb with employee incompetence: Incompetent and carelessness threatens an organizations
productivity, value and existence every single day. Logs containing employee entrance time
reflect one’s professionalism or ineptitude thus assisting the higher management in evaluation.
• Secure the premises by keeping a track on all movements: By tagging all concerned
individuals i.e. employees, guests and staff members (tags embedded in their cards) security can
be tightened. Not only this, but vehicles can also be tagged (temporarily or permanently
depending on the entity which owns the vehicle) to keep an eye on activity in the parking lot.
• Maintain logs of activity: An archive of logs containing the details of movement of all
individuals can be maintained for record and investigation purposes.
• Keep a track on fixed assets: A number of lethargic activities have to be done on the behalf of
the finance departments to keep a track on the fixed assets i.e. electronic equipment, furniture,
cabinets. This includes assigning different combinative numbers, database entries and physical
search and verifications. As RFID tags are awfully cheap, these assets can be tagged thereby
automating many processes, improving productivity and saving time.

Educational Institutions: There has been a continuous decline in the level of discipline being
followed by students and teachers at almost all educational institutes in India. This includes
coming late (both), bunking classes, being involved in undesirable activities such as violence,
corruption, doping etc. By maintaining a daily log and surveillance system, these problems can
be addressed. The only thing needed to be done is to mount transponders at various exit/entry
points of the premises which would read all the information from the tags, embedded in

20
student/employee/teacher ID cards that enter their electromagnetic field. The data, if of a usual
nature, would be added in the database or discarded while unusual data (for example, an
unauthorized exit of a student from the premises) would be promptly notified to the designated
personnel. By mounting transponders at classroom entry/exits, the benefit of an automated
attendance system can also be reaped from RFID thereby saving the time wasted by taking a
manual attendance by the teacher. Furthermore, in universities/schools with large campuses, it is
often hard to find teachers, employees and students resulting in a tedious physical search. This
problem can also be solved by tracking their location. There is always a concern for the security
of infants/toddlers at primary educational institutes. Since, this age group has a tendency to
wander off; at times children get lost and even manage to get out of campus. Keeping a track on
their movements would be a viable solution. Applications of RFID also extend to restricting
access to certain space. For example, no student is allowed to enter the office where all the
printing of examination material is conducted. A RFID transponder mounted on the automated
door will only grant excess to authorized personnel. In a nutshell RFID provides the following
benefits to educational institutions: -
• An animated movement of tagged individuals on a computer screen
• An automated attendance system
• A daily log of movements of all tagged individuals which will be valuable for investigation
purposes
• Tracking solutions on premises
• Restricted access to certain space
Plastic Money Issuers - Banks: What is the main hassle of shopping or withdrawing money
with a credit or debit card? The loss of contact with the card until the transaction is completed.
The card swiping process not only induces a feeling of insecurity and unconscious intrigue to the
card holder but it is also slow and comparatively less reliable. For example, when these cards are
placed into a wallet, they sometimes loose their original shape and thus they malfunction at point
of sales (POS) and automated teller machines (ATMs). At times, they have to be swiped twice if
not ran through appropriately thereby wasting time. They even get captured in Automated Teller
Machines (ATMs) very often. It is estimated that magnetic stripe cards must be replaced two to
three times per year. All such troubles can be addressed by embedding cards with passive RFID
(read-only) tags that can be read from any desired distance by existing Point of Sale or
Automated Teller Machines which can be indigenously upgraded to accept both swipe and RFID
cards. RFID cards do not get damaged or need to be replaced so frequently as they are not
exposed to any rugged device. There are no insertion points to get damaged, as with card readers.
The lifetime investment and ongoing maintenance costs for RFID is below that of all known
alternative choices like magnetic stripe systems thus making it a lucrative investment. Such an
application ensures faster transactions and less hassles thereby saving time of the customer and
the opposite party involved.
The best approach is to initially offer this technology, along with Tech Horizon’s services, to
banks with the lowest market share in order to help them gain competitive advantage.

21
Libraries: RFID solutions can be put into practice into both digitized and non-digitized libraries.
The application is particularly much easier in completely non-digitized or offline libraries as this
gives the opportunity to design databases from scratch (at first) that would completely be
compatible with RFID solutions. Nevertheless, apart from some complexities, already digitized
or online libraries also provide a sufficient level of viability due to existing data infrastructure
and information systems. Small and medium sized libraries, private or state owned, can also
afford to adopt these applications. This involves tagging the cards of library members and books
coupled with developing smart shelves in order to trace them within the vicinity and detect
unauthorized removal. Of course such an application is only applicable to the expensive
reference books that lie in the tendency of being stolen. Miniature passive RFID tags can be
easily embedded between the pages or binding of books making them undetectable. Libraries
would benefit from RFID by: -
• Faster issuance of books: Tags embedded in the members’ card and the books would contain
all relevant information (title, writer, edition, last date of issue, name, membership due, age
respectively) that can be read by the transponder provided at the reception granting the librarian
the comfort of not typing any information and issuing books instantly.
• An organized database: The information read from tags would instantly be updated in an
organized database depicting the names of the book and member, the member’s registration
number, the date of issue etc. This would eliminate manual tasks such as totaling the number of
fine an individual has to pay at the end of the semester/degree.
• Efficient book management: Transponders embedded in shelves would change them into
“smart shelves” which would continuously reveal the location of the books eliminating the hassle
of finding them if they are mistakenly placed at an incorrect site.
• Increased Security: By mounting transponders (which would be connected to the central
database showing the issuance status of the books) at the library exit, it would be impossible for
non-issued books to be stolen.

Tracking Companies: Despite increased efforts of law enforcement agencies; there has been a
continuous increase or an unsatisfying decline in vehicle hijacking in various cities of the
country. All vehicle tracking companies are currently using GPS (global positioning system)
technology to signal a vehicle’s location via SMS messages over a mobile phone network. The
vehicle activity is recorded by modules attached to each vehicle, and movement is tracked
wirelessly nationwide. The data is transmitted to a central, Internet-connected computer where it
is stored.
More security at substantially cheaper rates can be introduced with RFID implications in this
regard. With a vehicle tag costing only Rs. 600 – Rs. 800, an RFID automobile immobilization
and tracking system can execute all the functions performed by its GPS technology based
counterpart. Such low installation and operational expense would lead to an expanded market
comprising of owners of relatively cheaper cars; motorcycles, taxis and all kinds of

22
transportation companies ranging from local and intercity bus services to nationwide freight
transportation companies. Governmental and semi-governmental organizations can also benefit
by keeping a track on vehicles that are prohibited for personal usage. Although such a system is
cheap (more cheap for the end-user), it requires an extremely large amount of funds initially in
order to build its underlying infrastructure. Therefore, the most favorable strategy is to sell this
technology along with continual services to an existing tracking company. This would eradicate
the need of laying down a new infrastructure and it would expand the customer base of the
company adapting it.

File Management: Almost every large and medium sized organization has to deal with
managing an ever growing number of files. Problems arise when these files get misplaced. By
mounting an inexpensive tag on files, their can be easily viewed/tracked on a computer screen
thereby saving time, hassle and increasing efficiency.

Stock Management: In spite of all the advances in the field of inventory management, it has
always been difficult to keep an accurate update on the status of inventory. In addition to this,
auditors and employees also face numerous hurdles when it comes to physical counting as at
times items are wrongly placed on other shelves. With the implementation of RFID,
organizations will become more efficient by keeping a track on inventory consumption,
requirements, reduction in errors and opportunity wastage, and maintaining a steady flow of
inventory.

Retail Stores: RFID provides innumerable opportunities to retail outlets of different nature. It is
an extremely feasible implementation which provides hassle-free and secure shopping. Such
outlets include those which sell apparel, jewelry, paint, computer parts/equipment, multimedia
equipment, petrol pumps and (mostly) any kind of expensive product. There is always a
probability of theft at all retail stores especially when it comes to costly products that are small in
size for example, rings, earrings, toys, gadgets, vehicle parts etc. RFID offers retailers real-time
visibility into inventory and product movement to improving store productivity and loss
prevention. Minuscule RFID tags (not visible to the naked eye) can be mounted on such 24
Major County Attorney’s Office Saves $200,000 Annually with RFID File Tracking System,
objects to detect their unauthorized removal thereby decreasing shoplifting. The main advantage
of such tags is that data can be read and written to them thus providing the comfort of reusing
them for another product after the sale of the product they were previously mounted on. In
addition all relevant information about the product can be written on the tag which would also
assist in an accurate transaction/sale recording enabling businesses to synchronize inventory
status and maintain an accurate amount of stock. Almost all medium and large retail stores use
Point Of Sales for credit/debit card purchases. Using an RFID and Swipe card based POS
machines will also push sales.

23
Courier & Postal Services: Being the cheapest of all tracking technologies, RFID can also be
used by courier and postal services to track the status of specific deliveries enabling them to even
share the automated information with customers through a website. Not only this, but diminutive
tags attached to postal packages, would contain all relevant information such as sender, recipient,
size, weight, dates etc. would be readable by RFID interrogators attached to handhelds used by
the delivery personnel. These handhelds would contain databases which would be updated at the
time of delivery through the interrogators. This way courier and postal service providers would
be able to maintain an accurate record of all pending and distributed deliveries thus eliminating
manual recording and human error. At present, there are hundreds of regional, national and
international courier companies operating in the country and providing courier service at the
level of inter city, inter provincial, national and international while the national postal service
consists of a network of over 1,55,618 offices in India.

.Museums: Artifacts can also be tagged which would be programmed to set off the alarm system
if mobility occurs thus providing increased security on an item level basis.

Penitentiaries: Keeping a track on prisoner movement could never have been easier. RFID
solutions are the most efficient tool to maintain in-house security within normally large prisons
providing an opportunity to eliminate discipline violations. RFID tags connected to the databases
containing information such as prisoner threat/discipline level, term, name, prisoner number etc.
combined with an animated map showing all prisoner vibrancy on a computer screen is only one
of the possible applications to ensure an optimum level of scrutiny. In addition to keeping track
on prisoner movement, RFID systems can also be used keep on prison personnel. For the fourth
year in a row, a federal government report has found overcrowding at jails throughout Indian
Country.
Since 1998, the number of inmates housed in tribal and Bureau of Indian Affairs facilities has
jumped 26 percent, the Department of Justice reported. According to data released recently, the
jails were operating at 92 percent capacity, an increase from the year prior.

Competitive Analysis:
Being the first company of its kind in the state of Uttar Pradesh, Tech Horizon is well-positioned
to take advantage of the significant opportunities indicated by the rapid progression of RFID
implementations all over the world and by the ever-growing need for security and automation to
support a sustainable economic growth in India. Some of the known companies in the global
industry are: -
Microchip Technology
Motorola
Philips Semiconductors
SAMSys Technologies
Savi Technology

24
Siemens
Sokymat
Symbol Technologies
TAGSYS
Texas Instruments
TransCore
WhereNet
Alien Technology
Assa Abloy
Atmel
Bewator Group
Checkpoint Systems
CHEP
Combitech Systems
Gemplus
HID
Intermec Technologies (UNOVA)
Marconi Info Chain
Matrics RFID

Strategic Position and Risk Analysis

Tech Horizon faces the same business risk as any enterprise, such as a loss of important clients or
a downturn in the economy. We will be operating as a lean staff with very little overhead.
Another risk we face is an RFID system fraught with errors and ineffective in its delivery. Our
defense against this is vigilance. It will be liable for us to check and double-check all our work
and facts. If we do make an error that thwarts the purpose of the system, we will have to incur
costs to achieve the desired results. As technology continues to race forward and prices fluctuate
in the marketplace, we will continue to scan our environment for the most innovative, cost-
effective ways to produce RFID systems. Since Tech Horizon provides services on the basis of a
single technology, there is always a potential risk of the advent of a more efficient and reliable
technology facilitating the same functions Competition is another expected risk. It is quite likely
that Tech Horizon will have to indigenously prioritize between projects when business is
established due to which certain proposals would be turned down or delayed. An environment
with only one player and impending demand proposes lucrative opportunities for new players
which could either be newly formed or evolve from related solution providers. Backed with
proper or excessive funding and outsourced potential, such entities can prove to be significant
impediments to Tech Horizon’s success. Critical to the success of Tech Horizon is proper
funding. The majority of the funding will go towards establishing the business, supporting
business operations, product development and marketing efforts to help educate the target market
on the new concept. Proposals supported with presentations to potential clients are essential to

25
quick market penetration. Should Tech Horizon be unable to secure the necessary financing,
expected levels of efficiency would not be met, severely limiting the ability of Tech Horizon to
quickly expand and take advantage of the new product in a timely fashion.

Marketing Plan
Marketing Approach
Potential customers would be reached by personal selling; meetings that provide a brief overview
of applications in their organization, business dinners, direct mail and advertisements in
newspapers and technology magazines.

Pricing Profile
As implementations will vary, so will the prices. The main elements taken into consideration for
charging clients would be: -
 Costs of establishing an RFID infrastructure
 The range associated with tracing objects and people
 Cost of technology and equipment involved
 The hourly market rate of programmers
 Costs related to subcontractors

Other Costs
The variable and fixed costs to be considered are of: -

• Parts involved in the making of RFID equipment

Most of the parts are easily available in STPI Noida; some parts are taken from Radio Sets made
in China. The rough cost of an Active Reader comes to be Rs. 3000 for the range of 400-500 sq.
meters. Passive Tags cost around Rs..80 /tag, which may vary depending upon deployment. If the
same is deployed on a car, the cost will rise to Rs. 600 - Rs. 800. If it is for a person in specified
vicinity then the cost would be around Rs. 10 - Rs.100, totally depending upon the scenario.

26
• Utility Payments
This includes electricity and water.

• Lease Expenses
This involves the initial down payment, monthly rental payments coupled with interest expenses
for the office lease agreement.

• Promotional Costs
Our promotion chart elaborates the periodical incurrence of all promotional expenses.

Gross Margin on Products/Services

PRODUCT PRICE DIRECT GROSS GROSS MARGIN
COSTS MARGIN PERCENTAGE
Standard RFID Reader 8000 3000 5000 62.5 %
(Reading range is few sq
meters, max 1500-2000 sq
feet)

Standard Passive Tag for 20 .80 19.20 99.60%

Humans/Objects within
organization

Miniature Software Module 2,50,000 90,000 1,60,000 64 %

High End Software Module 3,50,000 1,50,000 2,00,000 57.14 %
High End RFID Reader 1,80,000 65,000 1,15,000 63.89 %
(Reading range is 500 sq
meter to 2 sq km)

Initial Feasibility Study 15,000 10,000 5,000 33.33 %

(miniature and
intermediate)
Initial Feasibility Study 30,000 20,000 10,000 33.33 %
(high
end)
Implementation 2,25,000 1,05,000 1,20,000 53.33 %
(Miniature)
Includes: Employee
training,
fixing tags and readers,
creating infrastructure,
organizational testing and
map creation

27
Implementation 6,75,000 3,15,000 3,60,000 53.33 %
(Intermediate;
same as miniature but
involves a larger magnitude
of
deployment)

Implementation (High 20,25,000 9,45,000 10,80,000 53.33 %

Scale;
same as intermediate but
involves a larger magnitude
of
deployment)

Standard Active Tag for 700 350 350 50.00 %

Humans/Objects within
organization
(recommended
for valuable goods)

Market Penetration
Sales Representatives/Direct Sales Force
Mr.Y will continue to generate new business for Tech Horizon through personal selling, direct
mail, advertising and other promotional efforts geared towards companies that fall in the target
market, will report directly to Mr.X. Their main job would be to identify and collect information
about potential clients/industries and make feasibility reports according to the deployment
involved in their organization.

Direct mail/Telemarketing:
Tech Horizon plans to engage in direct mail operations in at least three months of its first
financial year. If desirable results are achieved, a similar program with necessary variations
would be carried out for the next two years.

Advertising and Promotion:

We have decided to initiate the following stream of promotional efforts once the company
operations are commenced. It has been realized that once Tech Horizon engages itself in a
project, promotional efforts during that time span, in general, would carry a highly probable
detrimental effect on company reputation. This is because of the reason that the company
wouldn’t be able to cater to any demands from the potential clients created by the promotional

28
efforts due to its commitment with existing projects. The best solution to this is to indulge in
promotional activities when the end of a project is near. This would facilitate the acquisition of
new projects as soon the old ones have been completed.

Activity
1. Send 65 selected executives complete brochures and proposals to discuss implementations in
their particular division
2. Mail direct mail to targeted businesses in Lucknow. If a 5% response rate isn’t achieved,
materials will be revised.
3 .Submit editorial and ads to the Business, Tech Magazines for inclusion
4. Complete Website and send postcard to clients and prospects to check it out.
5. Host a dinner and invite a group of potential clients
6. Submit editorial in @internet magazine
7. Place meetings with potential clients from the private educational institute sector
8. Send clients and prospects holiday cards

Service and Warranties:

Tech Horizon will charge an initial fee for module development and annual service fee for
product updates and maintenance but will not entitle itself for any damages that occur if the
system is used outside the boundaries of its capability. Error or bugs reported by the client will
be removed as swiftly as possible.

Future Markets:
Implications of RFID have no end. This technology has the capability to revolutionize every
industry. Tech Horizon will continuously be on the look out for organizations in need for
automated processes. We will focus on national sales while keeping an eye on international
potential. We will start developing systems for small businesses as soon as the primary segments
of the target market are competently catered to.\

Operating and Control Systems

29
Administrative Policies, Procedures and Controls

Receiving Orders:
Our technological and financial experts will schedule meetings with the client upon a request for
services and collect information pertaining to their business needs. A feasibility study would be
conducted and a report would be handed over in two weeks at the least for which a calculated
amount of fee would be charged. Upon approval, contracts will be prepared and submitted to the
client. Operations (programming, designing of hardware) related to implementing the technology
would start as soon as all legal matters are dealt with. The personnel/staff/employees supposed to
use the equipment will be trained at the end of the implementation accordingly.

Billing the Customers:

Being a new venture, Tech Horizon has the ability to sustain expenses only a short term basis.
Therefore, it will charge the client for the management fee, programming hours, expenses and
costs of equipment each month during the implementation phase. An estimated amount of all
expenses (total and monthly) would be communicated in the initial phase of negotiation.

Paying the Suppliers:

Initially, suppliers would be paid on spot. Credit purchases would be made as reliable and
consistent relationships buildup.

Collecting the Accounts Receivable:

What administrative policies, procedures, and controls will be used for collecting the accounts
receivable? Will you have a separate collection department? Use a collection agency? Use
factoring?

Reporting to Management:
Our team will maintain an informal communication process and will document weekly activities
in a project diary for future reference. If and when the need for additional employees becomes
apparent due to multiple projects, a more structured communication system will be instituted
with report structure and procedures where the relevant project manager would be reported to.

Staff Development:
Training and development of staff will be beneficial to the overall efficiency of business
operations. As cash flow improves, we plan to implement a budget for staff to attend select
seminars and trade shows. Until then, we will make an effort to read business journals and copy
interesting items for each other. Computer training, equipment training, and personal
development will all be sought and encouraged by management.

30
Inventory Control:
As we will be a service based company, therefore we will be purchasing items for the
construction of RFID equipment only during project implementations. All costs pertaining to the
construction and assembling of equipment will be paid by the client rendering no costs of goods
sold. This gauges the fact that an inventory management system is unwanted and will not be
needed until we initiate high scale projects.

Handling Warranties and Returns:

Our product is not something that can be returned. We do stand behind our work. If through our
mistake or oversight, a client does not achieve the desirable results (foretold, detailed,
documented results related to security, automation, efficiency); we will exert all effort to achieve
them at our expense, which will exclude the client from paying any service charges (only). In
this regard, our CTO will be directly handling complaints and will design solutions to the stated
problems. An annual satisfaction and feedback survey program will also assist Tech Horizon to
provide an improved level of services in the future.

Monitoring the Company Budgets:

Budgets will be prepared quarterly to determine benchmarks for:
 Revenue
 Sales and Marketing Expenses
 Administrative Expenses
 General Expenses
 Capital Expenditures
The budgets will be used to establish benchmarks and then to review actual performance
against the benchmarks. An accountant will be hired to do the bookkeeping and prepare a
monthly analysis for Mr. Y and Mr. X who will then evaluate the need for modifications or
adjustments in spending.

Security Systems:
We are not overly concerned with physical security as we have no inventory and our equipment
is minimal. Our main security concern is client information. As such, establishing a password
system for each client’s computer files is in the works.

Documents and Paper Flow:

. The major documents identified are the ones related to: -

31
  Recruitment, salary and compensation
 Agreements with clients
 Purchases, agreements with suppliers
 Marketing expenses
 Miscellaneous expenses
As we grow and have more personnel and clients to deal with, a more formal Paper work system
will be put into place.

Planning Chart

Product/Service Development
The RFID prototype has been developed by the Tech Horizon Team which would be moulded
accordingly to meet the client’s requirements as soon as an agreement/contract is signed by both
parties and all paperwork/formalities are dealt with. The duration of a project depends on the
client’s requirements.

Manufacturing
We are not a manufacturer. Our output is a system consisting of both hardware and software of
which the software is created by our programmers while the hardware is the result of assembling
parts bought from Noida at the STPI Noida, LOGIX Techno Park - Sec- 127, Expressway, Noida,
As implementations of RFID vary to a great extent, it is difficult if not impossible to systemize
the process other than to require that it occur on time.

Financial Requirements

We have a partnership of three people who will invest Rs 100000 each amounting to Rs 300000
and rest Rs 500000 will be taken as loan from bank at the rate of 12% annually for the period of
36 month ,to pay amount of loan taken we will have to pay EMI of Rs.16600 per month for the
period of 36 months

Marketing Flow Chart

Our marketing materials are under development. Mr. Y is responsible for the marketing activities
with the help of the Mr. X as needed. Refer to the Marketing section under Advertising and
Promotions for a timeline of marketing efforts.

32
 Technology Plan
As we are an enterprise completely reliant on technology, it is an offbeat requirement to always
stay in touch with the latest developments in tracking technology and its applications. This also
includes developing systems that are free of bugs, more efficient than predecessors and
compatible with almost all the variety of computer systems. This is one of the reasons why we
will be using unbranded computer systems for testing purposes, ensuring maximum
compatibility. The parts to construct RFID equipment are cheap and plausibly reliable. They
would be replaced if found defective. If a rare compromise on quality regarding the parts is
encountered and there is a large contract/project at hand, Tech Horizon would try to import them.
We will be continuously browsing for the cheapest suppliers and ways to enhance the
performance of tracking equipment. The initial technology for operations consists of four
unbranded computer systems along with a laser printer and one used copying machine. These
systems will be connected to form a LAN in order for better resource sharing among the team.
We plan to access the internet through a reliable dialup connection. If business demands faster
access, we would go for purchasing a line from the cable operator of the vicinity. Primary
methods of communication would be through email and phone. Tech Horizon’s website is
currently under construction and will be hosted on the internet through a local ISP, which would
charge an annual fee. It would contain background information on the company and the services
that we are willing to provide. This will enable extended access to potential clients and will allow
a broader means of communication. We plan to update the website on a monthly basis and
include all the recent developments of our projects. All the Co Founders are technology literate
and there will be a preference for recruiting technology literate employees.

Management
Management Team:
All the three members are having Bachelor’s Degree in Technology. The CEO, Mr. X, who is
also having Masters Degree in Business Administration and five years of experience in system
integration field ,will be in charge of day-to-day operations in conjunction with formulating

33
project dependencies, and programming for the project modules required by the clientele. Rest
two members are also expertise in the field of computer programming and embedded systems

Organizational Chart:

Development/Growth Plan
New Offerings to Market
Attractive growth opportunities in the law enforcement and military sectors await the
implications of RFID. Tech Horizon can actively participate in constructing tracking systems
useful for elimination in crime & terrorism, assisting the local police and enhancing military
communication and coordination. Such an ambition of course requires resources, contacts and
reputation in order for it to be sought. Other opportunities include the introduction of human
tracking. Although this technology function has been mired with criticism and issues related to

34
privacy, it provides cheap opportunities pertaining to safety of the public. In a much broader
sense, it would assist the eradication of crimes, especially those related to kidnapping, ensuring
the safety of citizens. Such an implementation, of course needs a large infrastructure, therefore
the only viable option is to provide such a service is through a consortium or a client/corporate
entity that has a large infrastructure and is willing to share/finance the costs.
Expansion to a Product Base
Initially, Tech Horizon would be creating modules according to the needs of the customer. As the
business expands and as we gain experience and awareness about the various needs of the
different clients we serve in our targeted industries, expanding ourselves to a product base would
be a logical step. To be more elaborate, we plan to develop specific standardized modules that
would be an amalgamated solution to the needs that we would have encountered from past
experiences and thus could be used by all the targeted players of a specific market. We plan to
expand after at least five years of operations as a service based solutions provider.

Merger with another Solutions Provider

We are exploring the possibilities of adding a division that would be research oriented. The
formation of this division might be accomplished through merging with another firm,
particularly another software house or solutions provider. A merger would also support our
efforts of increasing the quality and dynamism in our product/service offerings and will also help
widen the customer base dramatically.

International Customers
The company will start offering services regionally when it has gained substantial experience and
resources to cater to a wider array of business solutions pertaining to RFID and is able to meet
global standards and expectations. This option will be pursued at least 6-7 years after startup,
when the business has become highly profitable and proficient in providing services.

Capital Requirements
The company would start with the injection of funds equivalent to at least Rs. 800000. To
support the above mentioned growth activities, the need for additional funds would have to be
fulfilled. These funds will be preferred to be sought through sale of existing equity, going public
and lastly, debt.
Personnel Requirements
The management team included in this plan is sufficient to incorporate additional growth but it
would be different in a scenario where a large or multiple contracts are agreed upon. In such
cases, subcontractors and outsourcing would be a large part of consideration. Additional
personnel requirements would include professionals of IT and Finance with significant
experience in project management and cost analysis respectively..

35
 Financial Plan
Sales Projections
Sales are projected as follows:
2009 - Rs. 770,000
2010 - Rs. 1340000
2011 - Rs. 1955000
We project to perform at least three projects in the first year out of which two would be of a
miniature scale and one would be of an intermediate implementation. The sources of sales would
be the fees for the feasibility studies and the implementations. The second year consists of one
miniature and two intermediate projects while the third year would comprise of two intermediate
and two miniature scale projects.

Income Projections
Net income projections are as follows:
2009 - Rs. (163,900)
2010 - Rs. 452168
2011 - Rs. 1029912

Cash Requirements
The business needs at least Rs. 800000 for business establishment and commencement of
operations and liquidity support .

Sources of Financing
We have a partnership of three people who will invest Rs 100000 each amounting to Rs 300000
and rest Rs 500000 will be taken as loan from bank at the rate of 12% annually for the period of
36 month ,to pay amount of loan taken we will have to pay EMI of Rs.16600 per month for the
period of 36 months

36
 START UP FUNDING & EXPENDITURES

START-UP CASH AMOUNT(Rs.)

Equity investments 3,00,000
Loan proceeds 5,00,000
Real estate loans -
TOTAL START-up CASH 8,00,000

START-UP EXPENDITURE
Security deposits
Rent 5,000
Telephone deposits 2,000
Total security deposits 7,000

START-UP EXPENSES
Legal & consultancy fees 3000
Meals & entertainment 3,000
Office supplies 15,000
Printing (cards, brochures 15,000
etc.)
TOTAL START-UP 43,000
EXPENSES

CAPITAL EXPENDITURES
Computer equipment 89,200
Testing Equipment machinery 15,000
Furnitures & fixtures 35,000
Vehicles 1,35,000
TOTAL START-UP CAPITAL 2,74,200
EXPENDITURES
TOTAL START-UP 3,17,200
EXPENDITURES

37
 PROJECTED CASH FLOW STATEMENTS FOR NEXT
THREE YEARS YEAR I
PARTI Pre JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL
CULA start-
RS up
Cash
In
Cash - - - - - 15,000 40,000 50,000 1,35,00 35,00 1,65,0 1700 1,60, 7,70,00
receive 0 0 00 00 000 0
d
from
clients(
excludi
ng
hardwa
re
cost)
Equity 3,00,00 - - - - - - - - -- - - - 3,00,00
Receiv 0 0
ed
Loans 5,00,00 - - - - - - - - - - - - 5,00,00
Receiv 0 0
ed
TOTAL 8,00,00 - - - - 15,000 40000 50000 135000 35,00 16500 1700 1600 14,26,0
CASH 0 0 0 00 00 00
IN
CASH
OUT
Advertis - - - - - - - - 60000 -- - - 6000 66,000
ing
Licens 3000 - - - - - - - - - - - - 2,500
e&
Fees
Marketin 15,000 - - 50,000 20,0 - - - - - - - - 85,000
g& 00
Promoti
on
Meals 3,000 - - - - - - - - - - - - 3,000
&
Enterta
inment
Office - - - 500 500 500 500 500 500 500 500 500 500 5,000
Expens
es
Office 15,000 - - - - - - - - - - - - 15,000
Supplie
s
Outsid - - - - - 2,000 - - - 2,000 - - - 4,000
e
Service
s
Salarie - - - - 33,0 33,000 33,000 33,000 33,000 33,00 33,000 33,00 33,00 2,97,00
s& 00 0 0 0 0
Wages
Profess - - - 1,700 1,70 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 17,000
ional 0
fees
Shippi - - - - - - 250 - - - 250 - - 500
ng &
deliver
y
Repair - - - 600 600 600 600 600 600 600 600 600 600 6,000
s&
Mainte
nance

38
Telepho 2000 2 2000 2,000 2,00 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 14,600
ne 000 0
Trainin - - - 4,000 4,00 - - - - - - - - 8,000
g& 0
Develo
pment
Rent 5,000 5 5,000 5,000 5,00 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 60,000
,00 0
0
Utilitie 8,000 8 8,000 8,000 8,00 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 94,000
s/ ,00 0
Travelli 0
ng
Vehicle - - - 1,000 2,00 1,000 2,000 1,000 2,000 1,000 2,000 1,000 2,000 15,000
0
Capital 2,74,20 - - - - - - - - - - - -
Purcha 0 2,74,200
ses
Monthl - 1 16,60 16,600 16,6 16,600 16,600 16,600 16,600 16,60 16,600 16,60 16,60 1,99,200
y EMI 6,6 0 00 0 0 0
00
TOTAL 3,25,20 3 31,60 89400 9340 69,400 68,850 67,550 128600 6960 68850 6785 74850 1166000
CASH 0 1,6 0 0 0 0
OUT 00
MONT 474800 (316 (3160 (89400) (934 (54400 (28850) (17550 6400 (3460 96150 1021 9515 260000
HLY 00) 0) 00) ) ) 0) 50 0
CASH
FLOW
(CASH
IN –
CASH
OUT)

39
 YEAR II
PARTICULAR JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL
S
Cash In
Initial cash 2
balance 600
00

Cash sales 1,05 1,35,0 1,70,0 2,35,0 20,00 60,00 70,00 90,00 1,00,0 1,25,0 75,00 1,55,0 13,40,000
,000 00 00 00 0 0 0 0 00 00 0 00

TOTAL CASH 3,65 1,35,0 1,70,0 2,35,0 20,00 60,00 70,00 90,00 1,00,0 1,25,0 75,00 1,55,0 16,00,000
IN ,000 00 00 00 0 0 0 0 00 00 0 00
CASH OUT
Operating
Expenses
Advertising - - - - - - - - - - - - -
License & Fees - - - - - - - - - - - - -
Marketing & - - - 20,000 - - - - - - - 10,00 30,000
Promotion 0
Meals & - - - - - - - - - - - - -
Entertainment
Office 500 500 500 500 500 500 500 500 500 500 500 500 6,000
Expenses
Office Supplies 600 600 600 600 600 600 600 600 600 600 600 600 7,200
Outside 2,00 - - - 2,000 - - - - - - - 4,000
Services 0
Salaries & 33,0 33,00 33,00 33,000 33,00 33,00 33,00 33,00 33,000 33,000 33,00 33,00 3,96,000
Wages 00 0 0 0 0 0 0 0 0
Professional 1,70 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 20,400
fees 0
Shipping & - 250 - - - 250 - - - - - - 500
delivery
Repairs & 600 600 600 600 600 600 600 600 600 600 600 600 7,200
Maintenance
Telephone 1,20 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 14,400
0
Training & - - - - - - - - - - - - -
Development
Rent 5 50000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 60,000
000
Utilities/travell 8,00 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 96,000
ing 0

40
 Vehicle 1,00 2,000 1,000 2,000 1,000 2,000 1,000 2,000 1,000 2,000 1,000 2,000 18,000
0
Monthly EMI 16,6 16,60 16,60 16,600 16,60 16,60 16,60 16,60 16,600 16,600 16,60 16,60 1,99,200
00 0 0 0 0 0 0 0 0
TOTAL CASH 70,2 69,45 70,20 91,200 72,20 71,35 72,20 73,20 73,200 72,200 71,20 82,20 8,88,800
OUT 00 0 0 0 0 0 0 0 0
CASH FLOW 2,94 65,55 99,80 1,43,8 (52,20 (11,35 (2,20 16,80 26,800 52,800 3,800 72,800 7,11,200
(CASH IN – ,800 0 0 00 0) 0) 0) 0
CASH OUT)

YEAR III

PARTI JA FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL
CULA N
RS
Cash
In
Initial 7
Cash ,11
balanc ,20
e 0
Cash 1 1,00,0 1,60,0 2,40,0 2,15,00 2,40,00 1,05,0 2,10,00 1,90,00 2,25,00 1,35,0 1,20,00 19,55,
sales 5,0 00 00 00 0 0 00 0 0 0 00 0 000
00
TOTAL 7 1,00,0 1,60,0 2,40,0 2,15,00 2,40,00 1,05,0 2,10,00 1,90,00 2,25,00 1,35,0 1,20,00 26,81,
CASH ,26 00 00 00 0 0 00 0 0 0 00 0 200
IN ,20
0
CASH
OUT
Opera
ting
Expen
ses
Adverti - 50,000 - - - - - - - - - - 50,000
sing
Licens - - - - - - - - - - - - -
e&
Fees
Market - - - - - 20,000 - - - - - - 20,000
ing &
Promot
ion
Meals - - - - - - - - - - - - -
&
Enterta
inment
Office 50 500 500 500 500 500 500 500 500 500 500 500 6,000

41
Expens 0
es
Office 60 600 600 600 600 600 600 600 600 600 600 600 7,200
Supplie 0
s
Outsid - - 4,000 - - - 2,000 - - - - - 6,000
e
Service
s
Salarie 3 33,000 33,000 33,000 33,000 33,000 33,000 33,000 33,000 33,000 33,000 33,000 3,96,0
s& 3,0 00
Wages 00
Profess 1 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 20,400
ional ,70
fees 0
Shippi - 250 - 500 - - - 250 - - - - 1,000
ng &
deliver
y
Repair 60 600 600 600 600 600 600 600 600 600 600 600 7,200
s& 0
Mainte
nance
Teleph 1 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 14,400
one ,20
0
Rent 50 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 60000
00
Utilitie 8 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 96,000
s/trave ,00
lling 0
Vehicle 1 2,000 1,000 2,000 1,000 2,000 1,000 2,000 1,000 2,000 1,000 2,000 18,000
,00
0
Other
Monthl 1 16,600 16,600 16,600 16,600 16,600 16,600 16,600 16,600 16,600 16,600 16600 199200
y EMI 6,6
00
TOTAL 68,2 11820 72200 67700 67650 87650 69650 68450 68200 69450 68200 69200 894750
CASH 00 0
OUT
CASH 178645
FLOW 0
(CASH
IN –
CASH
OUT)

42
 PROJECTED MONTHLY INCOME STATEMENT

YEAR I
PARTICU Pre JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL
LARS start-
up
NET - - - - - 15,000 40,000 50,000 1,35,000 35,00 1,65,0 1,70,0 16,000 7,70,0
SALES 0 00 00 00
Cost of - - - - - - - - - - - - - -
goods sold

GROSS - - - - - 15,000 40,000 50,000 1,35,000 35,00 1,65,0 1,70,0 160,00 7,70,0
INCOME 0 00 00 0 00

Advertising - - - - - - - - 60,000 - - - 6,000 66,000

Depreciatio - 3,42 3,425 3,425 3,425 3,425 3,425 3,425 3,425 3,425 3,425 3,425 3,425 41,100
n& 5
amortization
License & 2,500 - - - - - - - - - - - - 2,500
Fees
Marketing 15,00 - - 50,00 20,00 - - - - - - - - 85,000
& 0 0 0
Promotion
Meals & 3,000 - - - - - - - - - - - - 3,000
Entertainme
nt
Miscellaneo - - - - - - - - - - - - - -
us
Office - - - 500 500 500 500 500 500 500 500 500 500 5,000
Expenses
Office 15,00 - - - - - - - - - - - - 15,000
Supplies 0
Outside - - - - - 2,000 - - - 2,000 - - - 4,000
Services
Salaries & - - - - 33,00 33,000 33,000 33,000 33,000 33,00 33,000 33,000 33,000 2,97,0
Wages 0 0 00

43
 Professional - - - 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 17,000
fees
Repairs & - - - 600 600 600 600 600 600 600 600 600 600 6,000
maintenance
Shipping & - - - - - - 250 - - - 250 - - 500
delivery
Telephone - - - 2,500 2,500 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 14,600

Training & - - - 4,000 4,000 - - - - - - - - 8,000

developmen
t
rent - - - 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 45,000

Utilities/trav - - - 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 80,000
el
Vehicle - - - 1,000 2,000 1,000 2,000 1,000 2,000 1,000 2,000 1,000 2,000 15,000

Other 30,0 - - - - - - - - - - - - 30,000

00
TOTAL 65,5 3,42 3,425 76,22 80,22 55,925 55,175 53,925 1,14,925 55,925 55,175 53,925 60,925 7,34,7
OPERATI 00 5 5 5 00
NG
EXPENSE
S
Operating (65, (3,4 (3,425) (76,2 (80,2 (40,925 (15,175) (3,925) 20,075 (20,9 1,09,8 1,16,0 99,075 35,300
Income 500) 25) 25) 25) ) 25) 25 75
-
To loan (16,60 (16,60 (16,6 (16,6 (16,600 (16,600) (16,60 (16,600) (16,6 (16,60 (16,60 (16,60 (1,99,200
0) 0) 00) 00) ) 0) 00) 0) 0) 0) )
NET (65, (20,02 (20,02 (92,8 (96,8 (57,525 (31,775) (20,52 3,475 (37,5 93,225 99,475 82,475 (1,63,9
INCOME 500) 5) 5) 25) 25) ) 5) 25) 00)
Income - - - - - - - - - - - - - -
taxes(if any)
INCOME (65, (20,02 (20,02 (92,8 (96,8 (57,525 (31,775) (20,52 3,475 (37,5 93,225 99,475 82,475 (1,63,9
BEFORE 500) 5) 5) 25) 25) ) 5) 25) 00)
TAXES

YEAR II

PARTICULAR JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL
S
NET SALES 1,05,00 1,35,00 1,70,00 2,35,00 20,000 60,000 70,000 90,000 1,00,00 1,25,00 75,000 1,55,00 13,40,00
0 0 0 0 0 0 0 0
GROSS 1,05,00 1,35,00 1,70,00 2,35,00 20,000 60,000 70,000 90,000 1,00,00 1,25,00 75,000 1,55,00 13,40,00
INCOME 0 0 0 0 0 0 0 0

Advertising - - - - - - - - - - - - -

44
Depreciation & 2,911 2,911 2,911 2,911 2,911 2,911 2,911 2,911 2,911 2,911 2,911 2,911 34,932
amortization
License & Fees - - - - - - - - - - - - -

Marketing & - - - 20,000 - - - - - - - 10,000 30,000

Promotion
Meals & - - - - - - - - - - - - -
Entertainment
Miscellaneous
Office Expenses 500 500 500 500 500 500 500 500 500 500 500 500 6,000

Office Supplies 600 600 600 600 600 600 600 600 600 600 600 600 7,200

Outside 2,000 - - - 2,000 - - - - - - - 4,000

Services
Salaries & 33,000 33,000 33,000 33,000 33,000 33,000 33,000 33,000 33,000 33,000 33,000 33,000 3,96,00
Wages 0
Professional 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 20,400
fees
Repairs & 600 600 600 600 600 600 600 600 600 600 600 600 7,200
maintenance
Shipping & - 250 - - - 250 - - - - - - 500
delivery
Telephone 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 14,400
Training & - - - - - - - - - - - - -
development
Travel 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 54,000
Utilities 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 96,000

Vehicle 1,000 2,000 1,000 2,000 1,000 2,000 1,000 2,000 1,000 2,000 1,000 2,000 18,000
Other
TOTAL 56,011 55,261 54,011 75,011 56,011 55,261 54,011 55,011 54,011 55,011 54,011 65,011 6,88,63
OPERATING 2
EXPENSES
Operating 48,989 79,739 1,15,98 1,59,98 (36,011 4,739 15,989 34,989 45,989 69,989 20,989 89,989 6,51,36
income 9 9 ) 8

To loan (16,600 (16,600 (16,600 (16,600 (16,600 (16,600 (16,600 (16,600 (16,600 (16,600 (16,600 (16,600 (1,99,200
) ) ) ) ) ) ) ) ) ) ) )
NET INCOME 32,389 63,139 99,389 1,43,38 (52,611 (11,861 (611) 18,389 29,389 53,389 4,389 73,389 4,52,168
9 ) )
Income taxes(if - - - - - - - - - - - - -
any)
INCOME 32,389 63,139 99,389 1,43,38 (52,611 (11,861 (611) 18,389 29,389 53,389 4,389 73,389 4,52,168
BEFORE 9 ) )
TAXES

YEAR III

PARTICULA JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL
RS
NET SALES 15,0 1,00,00 1,60,00 2,40,00 2,15,00 2,40,00 1,05,00 2,10,00 1,90,00 2,25,00 1,35,00 1,20,00 19,55,00
00 0 0 0 0 0 0 0 0 0 0 0 0
GROSS 15,0 1,00,00 1,60,00 2,40,00 2,15,00 2,40,00 1,05,00 2,10,00 1,90,00 2,25,00 1,35,00 1,20,00 19,55,00
INCOME 00 0 0 0 0 0 0 0 0 0 0 0 0

45
Advertising - 50,000 - - - - - - - -- - - 50,000
Depreciation 2,47 2,474 2,474 2,474 2,474 2,474 2,474 2,474 2,474 2,474 2,474 2,474 29,688
& amortization 4
License & - - - - - - - - - - - - -
Fees
Marketing & - - - - - 20,000 - - - - - - 20,000
Promotion
Meals & - - - - - - - - - - - - -
Entertainment
Miscellaneous
Office 500 500 500 500 500 500 500 500 500 500 500 500 6,000
Expenses
Office 600 600 600 600 600 600 600 600 600 600 600 600 7,200
Supplies
Outside - - 4,000 - - - 2,000 - - - - - 6,000
Services
Salaries & 33,0 33,000 33,000 33,000 33,000 33,000 33,000 33,000 33,000 33,000 33,000 33,000 3,96,00
Wages 00 0
Professional 1,70 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 20,400
fees 0
Repairs & 600 600 600 600 600 600 600 600 600 600 600 600 7,200
maintenance
Shipping & - 250 - 500 - - - 250 - - - - 1,000
delivery
Telephone 1,20 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 14,400
0
Training & - - - - - - - - - - - - -
development
Travel 4,50 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 54,000
0
Utilities 8,00 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 96,000
0
Vehicle 1,00 2,000 1,000 2,000 1,000 2,000 1,000 2,000 1,000 2,000 1,000 2,000 18,000
0
Other - - - - -
TOTAL 53,5 1,04,82 57,574 55,074 53,574 74,574 55,574 54,824 53,574 54,574 53,574 54,574 7,25,88
OPERATING 74 4 8
EXPENSES
Operating (38,5 (4,824) 1,02,42 1,84,92 1,61,42 1,65,426 49,426 1,55,17 1,36,42 1,70,42 81,426 65,426 12,29,112
income 74) 6 6 6 6 6 6

To loan (16,6 (16,600 (16,600 (16,600 (16,600 (16,600 (16,600 (16,600 (16,600 (16,600 (16,600 (16,600 (1,99,200
00) ) ) ) ) ) ) ) ) ) ) )

NET (55,1 (21,424 85,826 1,68,32 1,44,82 1,48,82 32,826 1,38,57 1,19,82 1,53,82 64,826 48,826 10,29,91
INCOME 74) ) 6 6 6 6 6 6 2
Income taxes - - - - - - - - - - - - -
(if any?)
INCOME (55,1 (21,424 85,826 1,68,32 1,44,82 1,48,82 32,826 1,38,57 1,19,82 1,53,82 64,826 48,826 10,29,91
BEFORE 74) ) 6 6 6 6 6 6 2
TAXES

PROJECTED INCOME STATEMENT (YEAR END)

PARTICULARS I YEAR II YEAR III YEAR

46
(RS.)
Net sales(less 7,70,000 13,40,000 19,55,000
returns &
allowances)
Cost of goods - - -
sold
GROSS INCOME 7,70,000 13,40,000 19,55,000

Operating
expenses
Advertising 66,000 - 50,000
Depreciation & 41,100 34,932 29,688
amortization
License & fees 2,500 - -
Marketing & 85,000 30,000 20,000
promotion
Meals & 3,000 - -
entertainment
Office expenses 5,000 6,000 6,000
Office supplies 15,000 7,200 7,200
Outside services 4,000 4,000 6,000
Salaries & wages 2,97,000 3,96,000 3,96,000
Professional fees 17,000 20,400 20,400
Repairs & 6,000 7,200 7,200
maintenance
Shipping & 500 500 1,000
delivery
Telephone 14,600 14,400 14,400
Training & 8,000 - -
development
Rent 45,000 54,000 54,000
Utilities/Travel 80,000 96,000 96,000
Vehicle 15,000 18,000 18,000
Other 30,000 - -
Repayment of 1,99,200 1,99,200 1,99,200
loan
TOTAL 9339000 887832 925088
OPERATING
EXPENSES

INCOME (1,63,900) 4,52,168 10,29,912

BEFORE TAXES
Income taxes (if - - -
any)
NET INCOME (1,63,900) 4,52,168 10,29,912

47
INTEREST ON BANK LOAN STATE BANK OF INDIA @ 12% :

Calculated Monthly EMI 16600

Annual EMI 199200

Total Amount with Interest 597857

Total Interest Amount 97857

Yearly Interest Amount 32619

Bibliography

• Data Protection Working Party. Working document on data protection issues related to
RFID technology. EU 10107/05/EN WP 105, January 2005.
www.europa.eu.int/comm/internal_market/privacy/docs/

48
• wpdocs/2005/wp105_en.pdf
• Gildas Avoine. Adversarial model for radio frequency identification. Cryptology ePrint
Archive, Report 2005/049, 2005. eprint.iacr.org
• Book Industry Study Group. BISG Policy Statement.
www.bisg.org/docs/BISG_Policy_002.pdf, September 2004.
• Jerry Brito. Relax, don’t do it: Why RFID privacy concerns are exaggerated and
legislation is premature. UCLA Journal of Law and Technology, 8(2), Fall 2004.
www.lawtechjournal.com/articles/2004/05_041220_brito.pdf.
• Ann Cavoukian. Tag, you’re it: Privacy implications of radio frequency identification
(RFID) technology. www.ipc.on.ca/scripts/index_.asp?action=31&P_ID=15007,
February 2004.
• Vinod Chachra and Daniel McPherson. Personal privacy and use of RFID technology in
libraries. White Paper, VTLS Inc., www.vtls.com/documents/privacy.pdf, October 2003.
• The Icfai University Journal of Supply Chain Management, Vol. 6, No. 1, pp. 60-77,
March 2009
• http://ssrn.com/abstract=1266019

49