INCOME AND EXPENDITURE REPORT

Budgeted Sales& Cash flow Forecast for Year 1

Jan - Dec 2003 Annual
Budgets Sales
Subscription
Exclusive package
100 * Unit
Regular Package
55 * Unit
Advertisement
National Airtime
Local Airtime
Other
Interactive
Govt Grant

2,637,426

Jan

Feb

Mar

Apr

May

Jun

150,000

0
0
0
0
0
0
0
0
0
0
0
0
0
(Average sales increase of 30%)
0
2,637,426
0
0
0
0
0
879,142 7,726 average package costing less than national radio
1,758,284 3,597 average package costing less than local radio
0

0
0
150,000
50,000
100,000

Channel ISLAM Interactive : Read Year 2

1. Exceptional Project : smart

2. Creative Advantage

COSTS
Broadcasting
Infrastructure
Internal resources
ITC loyalties
Production
In-House Production
Out Sourced projects
On-shelf programs

1,250,506
715,000
521,000
14,506
1,312,000
664,000
375,000
273,000

Cost of sales
Gross Profit

2,562,506 563,560 226,832 226,832 226,832 226,832 227,657

74,920 -563,560 -226,832 -226,832 -226,832 -226,832 -77,657

Operations & Mgt

Personnel (Units)
Labour costs
Property
Bills & Rates
Marketing & PR
Stationary
CI Interactive

1,676,000
43
793,000
250,000
100,000
183,000
50,000
300,000

62,167
20
28,000
20,833
8,333
30,000
4,167
25,000

72,167
25
35,000
20,833
8,333
33,000
4,167
25,000

66,167
30
42,000
20,833
8,333
20,000
4,167
25,000

Operating Cost
TOTAL COST

1,676,000 116,333
4,238,506 742,060

126,333
425,332

120,333 115,933 121,533 124,333

413,332 404,532 415,732 422,157

OTHER INCOME
Net Profit

145,560
102,143
43,417
0
418,000
364,000
31,250
22,750

145,560
102,143
43,417
0
81,273
27,273
31,250
22,750

145,560 145,560 145,560 146,385

102,143 102,143 102,143 102,143
43,417 43,417 43,417 43,417
0
0
0
825
81,273 81,273 81,273 81,273
27,273 27,273 27,273 27,273
31,250 31,250 31,250 31,250
22,750 22,750 22,750 22,750

61,767
34
47,600
20,833
8,333
10,000
4,167
25,000

67,367
38
53,200
20,833
8,333
10,000
4,167
25,000

70,167
40
56,000
20,833
8,333
10,000
4,167
25,000

see projected sales for CI Interactive

-1,601,080 -679,893 -353,166 -347,166 -342,766 -348,366 -201,991
JAN

FEB

YEAR 1 : 2003

MAR

APR

MAY

JUN

INCOME AND EXPENDITURE REPORT

Budgeted Sales& Cash flow Forecast for Year 1

Jul

Aug

Sep

Oct

Nov

Dec

195,000 253,500 329,550 428,415 556,940 724,021 Budgets Sales

Subscription
Exclusive package
100 * 10,000
0
0
0
0
0
0
Regular Package
0
0
0
0
0
0
55 * 40,000
195,000 253,500 329,550 428,415 556,940 724,021 Advertisement
65,000 84,500 109,850 142,805 185,647 241,340
National Airtime
130,000 169,000 219,700 285,610 371,293 482,681
Local Airtime
Other
Interactive
3. Dept of Culture grant
Govt Grant

146,632
102,143
43,417
1,073
81,273
27,273
31,250
22,750

44,811
0
43,417
1,394
81,273
27,273
31,250
22,750

45,229
0
43,417
1,813
81,273
27,273
31,250
22,750

45,773
0
43,417
2,356
81,273
27,273
31,250
22,750

46,480
0
43,417
3,063
81,273
27,273
31,250
22,750

47,399
0
43,417
3,982
81,273
27,273
31,250
22,750

COSTS
Broadcasting
Infrastructure
Internal resources
ITC Licence loyalties
Production
In-House Production
Out Sourced projects
On-shelf programs

227,905 126,084 126,502 127,046 127,753 128,672 Cost of sales

-32,905 127,416 203,048 301,369 429,187 595,350 Gross Profit
72,967
42
58,800
20,833
8,333
10,000
4,167
25,000

74,367
43
60,200
20,833
8,333
10,000
4,167
25,000

74,367
43
60,200
20,833
8,333
10,000
4,167
25,000

74,367
43
60,200
20,833
8,333
10,000
4,167
25,000

74,367 134,567 Operations & Mgt

43
43
Personnel (Units)
60,200 110,400 Labour costs
20,833 20,833 Property
8,333
8,333 Bills & Rates
10,000 20,000 Marketing & PR
4,167
4,167 Stationary
25,000 25,000 CI Interactive

127,133 128,533 128,533 128,533 128,533 188,733 Operating Cost

428,005 328,984 329,402 329,946 330,653 451,972 TOTAL COST
OTHER INCOME
-160,038 -1,117
JUL

AUG

74,515 172,836 300,654 406,617 Net Profit

SEP

OCT

NOV

DEC

YEAR 1 : 2003

INCOME AND EXPENDITURE REPORT

Budgeted Sales& Cash flow Forecast for Year 2

Jan - Dec 2004 Annual

Jan

Feb

Mar

Apr

May

Jun

433,100

275,410

302,951

Budgets Sales

4,613,658 300,000 310,000 421,000

Subscription
Exclusive package
100 * Unit
Regular Package
55 * Unit
Advertisement
National Airtime
Local Airtime
Other
Interactive
Govt Grant

1,000,000 200,000 200,000 300,000 300,000

10,000
2,000
2,000
3,000
3,000
1,475,230
0
0
0
0
129,000
141,900
26,822
0
0
0
0
2,345
2,580
2,138,428 100,000 110,000 121,000 133,100
146,410
161,051
748,450 35,000 38,500 42,350
46,585
51,244
56,368
1,389,978 65,000 71,500 78,650
86,515
95,167
104,683
0
Channel ISLAM Interactive : Begin operation to realise revenue on year 3
1. Exceptional Project : smart
2. Creative Advantage

COSTS
Broadcasting
1,261,375 162,650 101,705 102,316
Infrastructure
715,000 100,000 100,000 100,000
Internal resources
521,000 61,000
ITC Licence loyalties
25,375
1,650
1,705
2,316
Production
1,000,000 106,000 81,273 81,273
In-House Production
352,000 52,000 27,273 27,273
Out Sourced projects 375,000 31,250 31,250 31,250
On-shelf programs
273,000 22,750 22,750 22,750

22,382
20,000

1,515

1,666

2,382
81,273
27,273
31,250
22,750

1,515
81,273
27,273
31,250
22,750

1,666
81,273
27,273
31,250
22,750

Cost of sales
Gross Profit

2,261,375 268,650 182,978 183,588

2,352,283 31,350 127,022 237,412

103,655
329,445

82,787
192,623

82,939
220,012

Operations & Mgt

Personnel (Units)
Labour costs
Property
Bills & Rates
Marketing & PR
Stationary
CI Interactive

1,732,000 104,917 107,917

44
44
44
849,000 70,750 70,750
250,000 20,833 20,833
100,000
8,333
8,333
183,000 30,000 33,000
50,000
4,167
4,167
300,000 25,000 25,000

94,917
44
70,750
20,833
8,333
20,000
4,167
25,000

84,917
44
70,750
20,833
8,333
10,000
4,167
25,000

84,917
44
70,750
20,833
8,333
10,000
4,167
25,000

84,917
44
70,750
20,833
8,333
10,000
4,167
25,000

Operating Cost
TOTAL COST

1,732,000 159,083 162,083 149,083

3,993,375 532,650 452,978 427,588

139,083
327,655

139,083
306,787

139,083
306,939

88,328

190,362

53,539

80,929

MAR

APR

MAY

JUN

OTHER INCOME
Net Profit

see projected sales for CI Interactive

620,283

-127,733 -35,061
JAN

FEB

YEAR 2 : 2004

INCOME AND EXPENDITURE REPORT

Budgeted Sales& Cash flow Forecast for Year 2

Jul

Aug

Sep

Oct

Nov

333,246

366,571

403,228

443,551

487,906

156,090
2,838
177,156
62,005
115,151

Dec
536,696 Budgets Sales

171,699
188,869
207,756
228,531 251,385
3,122
3,434
3,777
4,155
4,571
194,872
214,359
235,795
259,374 285,312
68,205
75,026
82,528
90,781
99,859
126,667
139,333
153,267 168,593 185,453
Average Advertisement sales increase of 15%

Subscription
Exclusive package
100 * 10,000
Regular Package
55 * 40,000
Advertisement
National Airtime
Local Airtime
Interactive
Govt Grant

3. Dept of Culture grant

COSTS
Broadcasting
Infrastructure
Internal resources
ITC Licence loyalties
Production
In-House Production
Out Sourced projects
On-shelf programs

1,833

2,016

2,218

2,440

2,683

2,952

1,833
81,273
27,273
31,250
22,750

2,016
81,273
27,273
31,250
22,750

2,218
81,273
27,273
31,250
22,750

2,440
81,273
27,273
31,250
22,750

2,683
81,273
27,273
31,250
22,750

2,952
81,273
27,273
31,250
22,750

83,106
250,141

83,289
283,282

83,490
319,737

83,712
359,838

83,956
403,949

84,225 Cost of sales

452,472 Gross Profit

84,917
44
70,750
20,833
8,333
10,000
4,167
25,000

84,917
44
70,750
20,833
8,333
10,000
4,167
25,000

84,917
44
70,750
20,833
8,333
10,000
4,167
25,000

84,917
44
70,750
20,833
8,333
10,000
4,167
25,000

84,917
44
70,750
20,833
8,333
10,000
4,167
25,000

94,917
44
70,750
20,833
8,333
20,000
4,167
25,000

139,083
307,106

139,083
307,289

139,083
307,490

139,083
307,712

139,083
307,956

149,083 Operating Cost

328,225 TOTAL COST

Operations & Mgt

Personnel (Units)
Labour costs
Property
Bills & Rates
Marketing & PR
Stationary
CI Interactive

OTHER INCOME
111,057

144,199

180,654

220,755

264,866

JUL

AUG

SEP

OCT

NOV

YEAR 2 : 2004

303,388 Net Profit

DEC

INCOME AND EXPENDITURE REPORT

Budgeted Sales& Cash flow Forecast for Year 3

Jan - Dec 2005 Annual
Budgets Sales
Subscription
Exclusive package
100 * Unit
Regular Package
55 * Unit
Advertisement
National Airtime
Local Airtime
Other
CI Interactive
Govt Grant

Jan

Feb

Mar

Apr

Budgeted Sales& Ca
May

Jun

6,564,454 232,500 263,250 298,200 337,939 383,139 434,571

0
0
0
0
0
0
0
0
0
0
1,764,203 82,500 90,750 99,825 109,808 120,788 132,867
32,076
1,500
1,650
1,815
1,997
2,196
2,416
4,350,250 150,000 172,500 198,375 228,131 262,351 301,704
1,522,588 52,500 60,375 69,431 79,846 91,823 105,596
2,827,663 97,500 112,125 128,944 148,285 170,528 196,107
450,000
Investment generated from proposal A
1. Exceptional Project : smart
2. Creative Advantage

COSTS
Broadcasting
1,269,629 162,279 101,448 101,640
Infrastructure
715,000 100,000 100,000 100,000
Internal resources
521,000 61,000
ITC Licence loyalties
33,629
1,279
1,448
1,640
Production
1,000,000 110,000 81,273 81,273
In-House Production
352,000 56,000 27,273 27,273
Out Sourced projects 375,000 31,250 31,250 31,250
On-shelf programs
273,000 22,750 22,750 22,750

of CI.Interactive deal with A

21,859
20,000

2,107

2,390

1,859
81,273
27,273
31,250
22,750

2,107
81,273
27,273
31,250
22,750

2,390
81,273
27,273
31,250
22,750

Cost of sales

2,269,629 272,279 182,721 182,913 103,131

83,380

83,663

Gross Profit

4,294,824 -39,779

80,529

115,287 234,807 299,759 350,908

Operations & Mgt

Personnel (Units)
Labour costs
Property
Bills & Rates
Marketing & PR
Stationary
CI Interactive

1,732,000
44
849,000
250,000
100,000
183,000
50,000
300,000

66,333
20
28,000
30,000
8,333
15,250

76,333
25
35,000
33,000
8,333
15,250

70,333
30
42,000
20,000
8,333
15,250

65,933
34
47,600
10,000
8,333
15,250

71,533
38
53,200
10,000
8,333
15,250

74,333
40
56,000
10,000
8,333
15,250

81,583

91,583

85,583

81,183

86,783

89,583

Operating Cost
TOTAL COST

1,732,000 163,167 183,167 171,167 162,367 173,567 179,167

2,799,000 385,500 386,773 368,773 275,573 272,373 280,773

OTHER INCOME
Net Profit

see projected sales for CI Interactive

3,765,454 -202,945 -102,637 -55,879
JAN

FEB

MAR

YEAR 3 : 2005

72,441
APR

126,193 171,741
MAY

Average Advertise

JUN

INCOME AND EXPENDITURE REPORT

Budgeted Sales& Cash flow Forecast for Year 3

Jul

Aug

Sep

Oct

Nov

Dec

493,113

559,772

635,700

722,212

820,817

933,241

Average Advertisement sales increase of 15%

146,154 160,769 176,846
2,657
2,923
3,215
346,959 399,003 458,853
121,436 139,651 160,599
225,523 259,352 298,255

194,531
3,537
527,681
184,689
342,993

213,984
3,891
606,834
212,392
394,442

of CI.Interactive deal with Al-Muntadah

3. Dept of Culture grant

Budgets Sales

Subscription
Exclusive package
100 * Unit
235,382
Regular Package
4,280
55 * Unit
697,859 Advertisement
244,251
National Airtime
453,608
Local Airtime
Other
CI Interactive
Govt Grant

2,712

3,079

3,496

3,972

4,514

5,133

2,712
81,273
27,273
31,250
22,750

3,079
81,273
27,273
31,250
22,750

3,496
81,273
27,273
31,250
22,750

3,972
81,273
27,273
31,250
22,750

4,514
81,273
27,273
31,250
22,750

5,133
81,273
27,273
31,250
22,750

COSTS
Broadcasting
Infrastructure
Internal resources
ITC Licence loyalties
Production
In-House Production
Out Sourced projects
On-shelf programs

83,985

84,351

84,769

85,245

85,787

86,406

Cost of sales

409,128

475,421

550,930

636,967

735,030

846,835

Gross Profit

77,133
42
58,800
10,000
8,333
15,250

78,533
43
60,200
10,000
8,333
15,250

78,533
43
60,200
10,000
8,333
15,250

78,533
43
60,200
10,000
8,333
15,250

78,533
43
60,200
10,000
8,333
15,250

138,733
43
110,400
20,000
8,333
15,250

92,383

93,783

93,783

93,783

93,783

153,983

Operations & Mgt

Personnel (Units)
Labour costs
Property
Bills & Rates
Marketing & PR
Stationary
CI Interactive

184,767
289,173

187,567
293,373

187,567
293,373

187,567
293,373

187,567
293,373

307,967
473,973

Operating Cost
TOTAL COST
OTHER INCOME

224,361

287,854

363,364

449,401

547,464

538,869

JUL

AUG

SEP

OCT

NOV

DEC

YEAR 3 : 2005

Net Profit

Channel Islam Ltd. Confidential

Labour Costs Analysis

Costs Analysis

Labour Costs
Category

Average Pay Package

A: Executive Director

32,000
Managing Director
Marketing
Broadcasting
Creative
29,000
Finance
Operations
27,000
Management Accountant
Corporate Media Lawyer
Financial Accountant
22,000
Marketing
Sales
Broadcsting
Administration
20,000
3D Animation
3D Animation
Editor * 3
Technician * 3
Researcher
Jounalist/Presenters
Jounalist/Presenters
17,000
Broadcsting department
Production department
Operations Department
14,000
Administration Team
Creative department
Sales Team

B: Non Executive Director

C: Specialist

E: Manager

F: Skilled

G: Semi Skilled

H: Standard

Page 7

Unit

Total

128,000

58,000

81,000

88,000

140,000

16

272,000

13

182,000

49

949,000

Prepared by Syed MA Rahman 11/18/2014

Page 7

Activity Categories
BROADCASTING

COST ANALYSIS
Item Description

Per month

Annual Total

Licence - required to be
paid in advance

ITC Licence
Astra Satelitte
Sky Platform
NTL (Cable & Up-Link)

833
30,000
7,917
20,833
59,583

10,000
360,000
95,000
250,000
715,000

Equipments

Control Room Switcher

Storage & Achiving
Omneon Video Network
Flip factory - Web streaming
Mics Products
HD 880 Lines Cameras * 3

8,333
6,250
4,167
1,000
9,167
5,000
33,917
1,667
1,000
2,083
4,750
9,500

100,000
75,000
50,000
12,000
110,000
60,000
407,000
20,000
12,000
25,000
57,000
114,000

Payments to be
made in Installments
(P.I.I)

Equipments

Information technology
Stationary
Assets

Control Room
TOTAL

Total Broadcasting Cost

PRODUCTION
IN-HOUSE
Studios - Fixures & Fittings
(P.I.I)

103,000 1,236,000

News & Views (Fixed)

Studio 1 (Medium)
Studio 2 (Large)
Studio 3 - Conversion Syst
TOTAL

1,250
2,083
2,500
667
6,500

15,000
25,000
30,000
8,000
78,000

Production Crew
Concessions
Expenses

21,667
3,333
5,000
34,667
5,833
2,500
5,833
2,917
14,167
17,500
13,750
31,250
9,167
7,083
5,000
1,500
22,750

260,000
40,000
60,000
416,000
70,000
30,000
70,000
35,000
170,000
210,000
165,000
375,000
110,000
85,000
60,000
18,000
273,000

Programmes:

Studio Equipments
(P.I.I)

OUT-SOURCED

ON THE SELF

Total Production Cost

SD 530+ Lines Cameras * 10

Planning Room
Editing - Avid systems * 5
Editing suits * 5
Editing
Projects
Films
Drama's
Talkshows & Documentaries
Other

109,333 1,312,000

OPERTIONS &
MANAGEMENT
EMPLOYEES
(diect labour)

Recruitment Costs
Executive Director
Non Executive Director
Specialist
Manager

833
10,667
4,833
6,750
7,333

10,000
128,000
58,000
81,000
88,000

Skilled

11,667

140,000

Semi-Skilled

22,667

272,000

Standard

15,167

182,000

79,917

959,000

Property - Lease & Deposit

12,000

144,000

Fitting and Fixutres

6,667

80,000

Maintenance
Bills & Rates
Computers and IT

2,083
1,833
4,167
26,750

25,000
22,000
50,000
321,000

Stationary
Marketing & Promotions
Miscellaneous

1,000
5,833
5,000
11,833

12,000
70,000
60,000
142,000

ASSESTS
FIXED COSTS

OVERHEADS

Total Operations Cost

GRAND TOTAL
COST

118,500 1,422,000

330,833 3,970,000

CHARTS TO ILLUSTRATE FINANCIAL PERFORMANCE OVER TIME

To Illustrate the realationaship between the costs and revenue
over time

Revenue and costs

1,200,000
1,000,000
800,000
Revenue

600,000

Cost

400,000
200,000
Dec

Nov

Oct

Sept

Aug

Jul

Jun

May

Apr

Mar

Feb

Jan

Time

Revenue
Cost

Revenue Performance
7000000
6000000
5000000
4000000

Sales Revenue

3000000

Subscription
Advertising

2000000
1000000
0
1

cost Structure

Operating costs

Cost of Sales

2000000

4000000

6000000

8000000

Revenue
Cost

Jan
Feb
150,000 160,000
169,000 346,000

Mar
177,000
371,000

Apr
May
Jun
Jul
262,000 165,000 261,000 475,000
245,000 253,000 253,000 320,000

Aug
Sept
Oct
Nov
Dec
627,000 720,000 883,000 895,000 1,011,000
280,000 360,000 353,000 280,000 286,000

Profit and Loss Account

Year 1

Year 2

Year 3

Sales Revenue

2,637,426

4,613,658

6,564,454

Subscription
Advertising

0
2,637,426

2,475,230
2,138,428

1,764,203
4,350,250

Cost of Sales

2,562,506

2,261,375

2,269,629

Gross Profit

74,920

2,352,283

4,294,824

1,676,000

1,732,000

1,732,000

Operating costs
Other Income
CI Interactive

Net profit

0
Profits from CI Interactive will
be realised the end of 2005
-1,601,080

620,283

2,562,824

Corporate tax

-448,302

173,679

717,591

Profit after tax

-1,152,778

446,604

1,845,233

Dividends

-345,833

133,981

553,570

Retained Profits

-806,944

312,623

1,291,663

-35

13

55

Earnings per share

Dividends per share
NOTE:

CI Five year strategic development plan

Year 2003

Established in UK Market with comptetive advantage of Market learder of the

Nieche Market, and also highly branded products and services.

Year 2004

Cross - Atlantic Broadcasting in USA and Canda will allow an initial raise in
Revenue of revenue of 30.4% and Consequently also increasing initial costs
both direct and indirect costs by almost 60% fir the commencing years
There are also the benefits of tax relief and other financial benifits
associated with multinational firms that maybe be reaped.

Year 2005

Global lauch, including in European countries will expectantly increase sales

revenue by around 50%, whilst the total cost would double.

Year 2006 - onwards Fall in total cost through economies of scale and also greater strengh in buying
power. Also increased streams of revenue should lower risks and aswell as
balance the costs.

BALANCE SHEET

Year ending December 30th:

(000's)
Year 1

Year 2

Year 3

Fixed Assets
Tangible Asests

Intangible Assets

Leasehold premises

250,000

400,000

480,000

Fitting & Fixtures

Studios
Production Equipments
Broadcasting Equipments
Operations Equipments

80,000
78,000 193,600 232,320
170,000 301,630 261,452
407,000 588,400 530,080
50,000 260,000 112,000
1,035,000 1,743,630 1,615,852

License
Astra & Cable platform
Programmes

10,000
12,000
14,400
610,000 832,000 698,400
416,000 699,200 439,040
1,036,000 1,543,200 1,151,840

Total Fixed Assets

Current Assets

2,071,000 3,286,830 2,767,692

Stock
Prepayments
Debtors
Investments
Cash at bank & in hand

Current Liabilities

364,000 636,800 464,160

350,000 520,000 224,000
100,000 120,000 144,000
150,000 180,000 216,000
10,000 312,000 374,400
974,000 1,768,800 1,422,560
Less: creditors: amouts falling within one year
creditors
Bank Overdraft
tax

Net Current Asset

working capital
Total Assest less current liabilities
Long-term Liabilities
Net Asset
Capital and reserves

340,000 408,000 489,600

10,000
12,000
14,400
20,000
24,000
28,800
370,000 444,000 532,800
604,000 1,324,800 889,760
1,701,000 2,842,830 2,234,892
450,000

540,000

648,000

1,251,000 2,302,830 1,586,892

authorised shares
called up share capital
Revenue reserves
Debt capital
other capital reserves
Profit & loss

3,300,000
30,000
700,000
300,000
46,000
0

0
0
0
0
-806,944

0
0
0
0
312,623

1,076,000

-806,944

312,623

RATIO ANALYSIS REPORT

Year 1

Year 2

Year 3

turnover / net current asset

155%

162%

294%

debt capital / total capital

27.9%

0.0%

0.0%

Current asset / C. liabilities

2.6

4.0

2.7

Liquidity Ratio / Acid test

CA - Stocks + WP / CL

1.6

2.5

1.8

Return on capital employed

Net Profit / Total capital

-149%

-77%

820%

Net profit / Turnover

-60.7%

13.4%

39.0%

stocks / cost of sales * 365

52

103

75

Dividends / Number of shares

-35

13

55

Asset Turnover
Gearing Ratio
Working capital

Net Profit Margin

Stock turnover in days
Dividends per share