► 84 half acre plots PKR 7.7m to 10.5m per plot ► 156 one acre plots PKR 16.5m to 22m per plot The sales support phases have been sequenced taking into account the level of visual development on the site. Our market research has negated the option of commencement of sales when the development is a virgin site due to lack of buyer interest at this stage. A degree of development needs to have been initiated to give the <strong>Project</strong> credibility. This credibility would be the driver for a transactions surge. Prior to the commencement of sales, the sales agent and developer should strongly consider developing a model farmhouse or, in the least, developing a farmhouse lot with an artificial structure and conducive landscaping to give the buyer a taste of the lifestyle being sold. Discussions and meetings during site visits would be conducted on the model plot and assist the process. The concept of using three phases for the sales support activities is to take the buyers on a journey through a process of conversion from prospective to actual buyers. Additionally, in order to retain converted prospects, these phases will serve to pacify buyers that they have made the right decision by purchasing a farmhouse at the <strong>Keenjhar</strong> <strong>Lake</strong> <strong>Resort</strong> and facilitate sales referrals. The chronological sequencing for these phases is as follows: 60 <strong>Keenjhar</strong> <strong>Lake</strong> <strong>Resort</strong> <strong>Project</strong> - <strong>Project</strong> Information Memorandum
14 Financial Analysis This section sets out the financial analysis of the <strong>Resort</strong> <strong>Project</strong> at <strong>Keenjhar</strong> <strong>Lake</strong> and presents its underlying assumptions. There are no assurances whatsoever that such events, as stated in the estimates or projections, will occur and should not be relied upon under any circumstances. It is reasserted that the developers, investors and interested parties should carry out their independent investigations and analyses for determination of estimates, projections and other matters relating to the <strong>Project</strong>. For reliance on the business model applied and the assumptions made, please refer to the Disclaimer page. 14.1 <strong>Project</strong> Cash Flows Currency: PKR '000s Jun-2011 Jun-2012 Jun-2013 Jun-2014 Jun-2015 Jun-2016 Jun-2017 Jun-2018 Jun-2019 Jun-2020 1 2 3 4 5 6 7 8 9 10 CASH FLOW FROM OPERATING ACTIVITIES Profit / Loss before taxation - - (84,786) (11,234) 3,267,780 308,245 449,469 581,135 845,734 999,320 Adjustment for non- cash charges Depreciation - - - - 268,125 254,719 241,983 229,884 218,390 207,470 Financial charges/ Interest Costs - - 84,786 11,234 248,795 170,094 127,571 85,047 42,524 - - - - - 3,784,700 733,059 819,024 896,066 1,106,648 1,206,790 Increase/ decrease in current assets (722,955) - (187,539) (184,812) 989,780 81,937 (2,734) (2,433) (5,808) (3,249) Increase/ decrease in current liabilities 50,176 423,052 1,024,691 2,254,319 (3,732,424) 2,505 2,536 2,231 3,991 3,115 Taxes paid (64,252) (198,468) (263,678) (343,599) (4,746) (5,897) (6,581) (7,189) (106,569) (366,963) (737,032) 224,584 573,475 1,725,908 1,037,310 811,604 812,245 888,675 998,261 839,694 CASH FLOW FROM INVESTING ACTIVTIES Capital expenditures (1,586,654) (1,325,903) (1,332,705) (1,331,608) - - - - - - (1,586,654) (1,325,903) (1,332,705) (1,331,608) - - - - - - CASH FLOW FROM FINANCING ACTIVTIES Share Capital 1,190,658 510,282 - - - - - - - - Sub-ordinated loans 319,440 - - - (319,440) - - - - - GoS Loan (Interest Rate Payable) 25,555 25,555 25,555 25,555 (102,221) - - - - - Long term financing 1,190,658 340,188 170,094 - (283,490) (283,490) (283,490) (283,490) (283,490) (283,490) Financial charges paid - - (84,786) (11,234) (248,795) (170,094) (127,571) (85,047) (42,524) - 2,726,311 876,025 110,863 14,321 (953,946) (453,584) (411,061) (368,537) (326,014) (283,490) Total Cash Flow During the year 402,625 (225,294) (648,366) 408,621 83,364 358,020 401,184 520,138 672,247 556,204 61 <strong>Keenjhar</strong> <strong>Lake</strong> <strong>Resort</strong> <strong>Project</strong> - <strong>Project</strong> Information Memorandum