Client Confidential

PROPOSAL

FOR DEVELOPMENT, DEPLOYMENT & TRAINING

of

ENTERPRISE RESOURCE PLANNING SYSTEM

to

Mr Usman Khalil ACA

CELEXICA TECHNOLOGIES (PRIVATE) LIMITED

111-CCA, 2nd Floor, Phase 4 Commercial Area

Defense Housing Authority, Lahore, Pakistan
Phone:+92-423-5735158, fax: +92-423-5891025
[Link]

Sunday, February 06, 2011

Presented by;

QAZI M. ATIQ
Director / CTO
qazi_atiq@[Link]

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PROJECT NAME Customized Enterprise Resource Planning System

Department IT Services – R&D

Programme

Project Development TBA

Business Contact
Qazi Muhammad Atiq
Technical Contact +92-321-4088822
qazi_atiq@[Link]
Date Sunday, February 06, 2011

Version 1.1

Note: This proposal includes information that shall not be disclosed outside Celexica Technologies (Private) Limited or the
client and shall not be duplicated, used, or disclosed—in whole or in part—for any purpose other than the evaluation of
this proposal by the intended parties.

Any revisions of or supplements to the terms of this proposal will be made through written documents signed by the
authorized representatives of Celexica Technologies (Private) Limited. If revisions or supplements that are signed conflict
with the terms of this proposal, the revisions or supplements will prevail. This proposal consists of four identical original
copies.

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1 INTRODUCTION
1.1 Audience 4
1.2 Confidentiality 4
1.3 Scope 4
1.4 Assumptions 4
1.5 Binding 5
1.6 Objectives 5
1.7 Project Deliverables 5
1.8 Project Timescales - Milestones 5
1.9 Project Cost 5
1.10 Hardware Requirements 5

2 DEFINITION OF TERMS 6

3 SYSTEM FEATURES 7
3.1 Financials 7–8
3.2 Process Manufacturing Management 9
3.3 Inventory Management 9
3.4 Purchase Management 9
3.5 Sales Management 9
3.6 Human Resources Management 9

4 SYSTEM TECHNOLOGY & DESIGN 10

4.1 Features 10
4.2 Design 10
4.2.1 Overall System Architecture 10
4.2.2 Database architecture 10
4.2.3 Front End 10
4.3 Technology 10

5 TRAINING 11
5.1 Training Objective 11
5.2 Prerequisites 11
5.3 Training Schedule 11

6 AMOUNT AND PAYMENT METHOD 12

6.1 Development Cost 12
6.2 Deployment and Maintenance 12
6.3 Payment Method 12
6.4 Annual Maintenance Contract 12

7 HARDWARE REQUIREMENTS 13
7.1 System Requirements 13
7.1.1 Servers 13
7.1.2 Client Side 13

8 KEY PERSONNEL 14

9 FORCE MAJEURE 15
9.1 Introduction 15
9.2 Postponement period 15

10 CONFIDENTIALITY 16

11 PATENTS AND INTELLECTUAL PROPERTY RIGHTS ("IPR") 17

12 SIGNING 18

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Section One – INTRODUCTION

This document presents an initial proposal for development of an Enterprise Resource

Planning System. This is a preliminary proposal and estimates based on preliminary
requirements gathered and understood.

1.1 Audience

Intended audience of this proposal is the ____________________ and Stake holders both
parties want to involve in finalizing the proposal.

1.2 Confidentiality

The document only holds true for the recipient of this document Celexica Technologies will
not be liable of any consequences arising by intentional or un-intentional sharing of this
information.

1.3 SCOPE

the scope and estimates cover the application of the system at one site and for the
functions of one economic unit.

1.4 Assumptions

Celexica Technologies would be provided assistance and information during the

requirement gathering phase from the stake holders and would use the existing data to
model the system, and use it as a reference point.

1.5 Binding

This document is not binding at this stage for any party and both Celixica Technologies and
the client are not committing any thing at this stage.

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1.6 Objectives
Number Objective Description
1 Development of an ERP software application to help improve operational efficiency and
productivity of business processes of the client. In the following functions – subject to specific
requirements of the customer:

1 Financials
2 Process Manufacturing Management
3 Inventory Management
4 Purchase Management
5 Sales Management
6 Human Resources Management

1.7 Project Deliverables

Number Deliverable
1 The system will be delivered in on a module by module basis. Allowing 2 months for each
module preparation, one month for testing and deployment and one month for staff training.
Initial estimates are 24 months for complete delivery from date of signing of final contract.

1.8 Project Timescales - Milestones

Milestone
Milestone
Date
TBD

1.9 Project Cost

Cost PKR Description
2,550,000 Development, deployment & training.

1.10 Hardware Requirements

Number Description
1 High performance Quad-Core or Dual-Core Intel Server machines with 8 GB RAM for each
server deployment.
2 Client side we would need an internet connected PC running Windows or Linux which has at
least one web browser installed.

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Section Two – DEFINITION OF TERMS

2.1 "Celexica or Company" refers to Celexica Technologies (Private) Ltd.

2.2 The “Client” refers to ____________________________________.

2.3 The proposal "refers to this proposal and all of its attachments that are part of the
proposal.

2.4 "The system" refers to the set of applications consisting of the design proposal,
design software, and related hardware and software equipment provided in this
proposal.

2.5 "Third party software" refers to software outsourced from third party, such as
operating systems and databases, that are attached to the hardware equipment or
that are essential to the normal operation of the whole system.

2.6 "Applications software" refers to application programs that are to be developed by

CELEXICA to meet the Government’s requirements and that will ultimately be
delivered to the Government.

2.7 "Technical documentation" refers to all technical parameters, drawings, designs,

manuals, and other proprietary information that are specified in the contract and
other related documents on the calculation, operation, maintenance, and testing of
the system.

2.8 "Technical services" refers to services that are provided in accordance with the
provisions of the contract, such as system design, installation supervision,
installation, testing, debugging, inspection, system operation, maintenance, support,
and others.

2.9 "Software upgrades" refer to program modifications and corrections that are
performed by CELEXICA, including code changes and alterations of end user
documentation, which would not materially change program indices or version
upgrades.

2.10 Version upgrades" refer to major improvements to the application programs which
are certified by CELEXICA to be new versions. Such improvements expand, alter,
and enhance programs by increasing functions and performance while retaining the
design purposes of the original programs.

2.11 "Training" refers to the principles and the actual operation of the system installation,
debugging, and operation that are taught to the client by CELEXICA, as well as to
other related knowledge.

2.12 "The final test" refers to the last test before the system goes into regular operation.
The test contents include the operating stability of all of the system's hardware and
third party software and the stability of the application software and specially
developed software. The test also includes the completeness of files and the
suitability of training progress. After the system passes the final test, it goes into
regular operation.

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Section Three – SYSTEM FEATURES

The system integrates internal and external management information across the
organization, embracing finance/accounting, manufacturing, sales, service & human
resources. The system will automate these activities with an integrated software application
with the purpose to facilitate the flow of information between all business functions

The system can run on a variety of hardware and network configurations employing a
database to store & process data and operates in (next to) real time, without relying on
periodic updates. With a common database, that provides a consistent look and feel
throughout each module.

The system will include the following functional areas.

1 Financials
2 Manufacturing Process Management
3 Inventory Management
4 Purchase Management
5 Sales Management
6 Human Resources Management

Financials

Financial system modules for bookkeeping and accounts activities. This module includes
the following functions.

General Ledger: General ledger keeps centralized charts of accounts and corporate
financial balances. It supports all aspects of the business accounting process. In this
module, financial accounting transactions are posted, processed, summarized, and
reported. It maintains a complete audit trail of transactions and enables individual business
units to view their financial information, while parent companies can roll up all business
subsidiaries and view the consolidated information. The GL function may be designed and
configured to cover:

Accounts payable schedules bill payments to suppliers and distributors, and keeps
accurate information about owed money, due dates, and available discounts. It provides
functionality and integration to other areas such as customer service, purchasing, inventory,
and manufacturing control. The software should support the following functionality: AP
company policies and procedures; suppliers/voucher master data; payment controls;
invoice processing and aging analysis; payment processing; journal voucher processing;
AP ledger posting; check processing; AP transactions and controls; and AP reporting.

Fixed assets manages depreciation and other costs associated with tangible assets such
as buildings, property and equipment. The software should support the following
functionality: fixed assets records; asset transactions; asset depreciation; depreciation
books; revaluation and interest calculation; and tax reporting.

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Cost Accounting analyzes corporate costs related to overhead, products, and

manufacturing orders. It provides a variety of costing approaches such as standard, FIFO,
LIFO, average, target, and activity-based costing (ABC). The software should support the
following functionality: cost data; cost allocation definitions; cost allocation process; cost
management; cost and sales price calculation; activity based costing (ABC); and activity
based cost tracing and tracking.

Budgeting involves budgetary controls, budget accounting, budget development, and

budget allocation. The software should provide sufficient tools to enable detailed budget
development and analysis. Additional functionality should be available to integrate with
project management software applications either natively or with external interfaces.

Accounts receivable tracks payments due to a company from its customers. It contains
tools to control and expedite the receipt of money from the entry of a sales order to posting
payments received. The software should support the following functionality: AR company
policies and procedures; customers/voucher master data; bill processing and aging
analysis; credit management; cash/payment application, receipt processing; journal
voucher processing; AR ledger posting; multicurrency accounting and conversions; AR
transactions and controls; and AR reporting.

Financial reporting enables robust analysis of company performance through delivered

reports. These reports will allow individual business units to view their financial information,
while parent companies can roll up all business subsidiaries and view the consolidated
information. Additionally, solutions should provide user generated reporting tools that are
easy to use and provide sufficient depth of and access to the financial data to permit
comprehensive analysis.

Process Manufacturing Management

PMM enables the optimization of the manufacturing process chain, significantly cutting
time-to-market, time-to-volume and production costs. PMM MPM provides a platform and
that address the complete area from conceptual planning, engineering, optimization and
management of a process through delivery to the shop floor. It manages Manufacturing
concept planning, Factory layout planning and analysis, work flow simulation, walk-path
assembly planning, Workloads and Resource planning.

Inventory Management

Solutions for inventory management are used for the record-keeping of goods that are
warehoused, and managing the movement of these goods to, from, and through
warehouses.

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Purchase Management
Purchasing management encompasses a group of applications that controls purchasing of
raw materials needed to build products and that manages inventory stocks. It also involves
creating purchase orders/contracts, supplier tracking, goods receipt and payment, and
regulatory compliance analysis and reporting.

Sales Management

This Module comprises of Contact Management and Sales Order Processing Management.
It is an integrated solution comprising of marketing and sales activities. Organization can
act immediately to improve sales, service and marketing effectiveness by using this
Module. Sales Management module is all about retaining customers, improving customer
loyalty and gaining customer insight.

This module also helps to you getting your customer order management easier day by day.
Whether it is maintaining customer information, quickly creating a quote or migrating them
to sales order or being responsive to your customers. SM can be tailored to manage
Pricing, Price lists, Discount Conditions, Offer management, Order procedure, Contracts
and delivery plans, Shipment, Delivery notes, Shipments and Invoicing.
Statistics

Human Resources Management

Human resources encompasses all the applications necessary for handling personnel-
related tasks for corporate managers and individual employees. Modules include personnel
management, benefit management, payroll management, employee self service, data
warehousing, and health and safety. The HRM can be tailored to manage employee
benefits, Payroll, Workforce Management and employee trainings.

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Section Four – SYSTEM TECHNOLOGY & DESIGN

4.1 Features

System will be developed using Architecture which would seperate it into three layers of
Presentation, Business Logic, and Data Storage. This will enable quick integration and
future proof the system for new requirements

4.2 Design

4.2.1 Overall System Architecture

System will be designed in a multi tiered MVC Architecture. Each layer will be able to work
independently allowing backups and safety measure to be taken easily, it will also minimize
down time in case of server failure and insure quick recovery if such an incident happens.

4.2.2 Database architecture

Database will be separate from Web Server, and it will be backed up at regular intervals

4.2.3 Front End

On client side the interface would be through web browser. This would ensure minimum
requirement from client end in terms of systems and installation and all load will be on the
server end.

4.3 Technology

Technology to be used for the system would be open source scalable technologies. Except
for the data base for which we might go for a commercial enterprise level DB (cost of
server not included in the quotation) But this will be purely based on requirements gathering
sessions we have with clients.

For server side robust PhP will be used to implement business logic.

On client side AJAX based rich web pages would be used.

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Section Five – TRAINING

5.1 Training Objective

Trainings will be conducted by trained professionals provided by CELEXICA. The company

will conduct trainings at clients office as mentione earlier a 1 month training will be given for
each module. Location of training would be at clients office or designated space

On completion of these trainings the participants will have;

i. acquired an understanding of System and the technologies and business process

involved.
ii. understanding of their roles and responsibilities.
iii. ability to manage and navigate work through various interfaces

5.2 Prerequisites

Basic concept of Windows, web applications and typing skills. Basic knowledge of
Accounting, finance concepts, purchasing process, inventory management, human
resource management, etc. It is assumed that the user of each module is an experienced
professional in his related filed of work.

5.3 Training Schedule

Course Title Hours

CT1000 5
CT1001 4
CT1100 20
CT1200 18
CT1300 6
CT1400 18
CT1500 20
CT1600 13
CT1700 6
CT1800 10
CT1900 5
CT2000 10
CT2100 8
CT2200 6
CT3000 Varies
CT3001 Varies
CT4000 Varies

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Section Six – AMOUNT AND PAYMENT METHOD

6.1 Development Cost

System Development PKR

License fee
National Health Management Information System 2,550,000
with modules covered in this proposal
Total 2,550,000

6.2 Deployment and Maintenance

Activity PKR
Training
Deployment and Maintenance for one year
Total 0

Total Cost PKR 2,550,000/-

6.3 Payment Method

Milestone payments shall be made to the company, in the amounts and at the frequencies
stated below.

Payment Milestone PKR

i Signing of contract 750,000
ii TBA 500,000
TBA 500,000
TBA 500,000
Completion of instaltion and Training 300,000
Total 2,550,000

6.4 Annual Maintenance Contract

To be paid bi-annually in advance.

Annual Maintenance Contract PKR

Annual maintenance after expiry of first year 250,000

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Section Seven – HARDWARE REQUIREMENTS

7.1 System Requirements

The ERP system will be a client server architecture and will require the following hardware.

7.1.1 Servers
On server side the client will need to acquire high performance Quad-Core or Dual-Core
Intel Server machines with 8 GB RAM for each server deployment.

Each of the servers would have a backup system.

Enabled data backup over DVD Roms or preferably NetBackup solutions like veritas.

RAID will be used in storage to ensure Data Safety.

High speed internet connectivity will be needed on server side to enable clients to access.

7.1.2 Client Side

On Client side we would need an internet connected PC running Windows or Linux which
has at least one web browser installed.

Note: Hardware not included in this proposal.

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Section Eight – KEY PERSONNAL

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Section Nine – FORCE MAJEURE

9.1 Introduction
Force majeure refers to events such as wars, fires, typhoons, floods, earthquakes, or other
events that one regarded by both parties to be force majeure events. The confirmation of a
force majeure event must be based on legally valid supporting documents that are provided
by an authoritative body jointly recognized by both parties.

9.2 Postponement period

If either party is forced to suspend or postpone the contract performance due to force
majeure event, the contract performance will be correspondingly delayed, and the
postponement period will equal to the time when the force majeure event is in effect.

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Section Ten – CONFIDENTIALITY

10.1 Both parties unanimously agree that, while the during the course of this proposal or
at any time afterwards in the case of its acceptance or dismissal, either party will
keep strictly confidential all the information regarding issues, business, or operations
pertaining to the other party and the information provided by CELEXICA.

10.2 Except with the authorization of the company or due to the need for related parties to
conduct operations, neither party may disclose any confidential information at any
time to any person. Both parties further agree not to turn over any confidential
information to any person, unless with the written consent of the other party or due to
a reasonable need of one party to fulfill its obligations. Both parties agree not to copy
or transcribe confidential information.

This clause does not apply to the contents listed below:

10.2.1 Contents that are public knowledge or that are in the category of common
knowledge;

10.2.2 Contents that are public knowledge due to publications or other reasons (excluding
unauthorized actions or negligence), and that have become common knowledge;

10.2.3 Contents provided by any third party without restrictions, for which contents the said
third party has no express or implicit obligations to keep confidential;

10.2.4 Contents that are required by law to be disclosed to any institution or organization.

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Section Eleven – PATENTS AND INTELLECTUAL PROPERTY RIGHTS

11.1 Both contracting parties will be responsible for protection of the patents and
trademarks of their respective products.

11.2 CELEXICA guarantees that the system provided to the client for use under this
project is subject to claims or legal proceedings filed by a third party concerning
infringements of its patents trademarks, industrial designs, or other protected rights.
All disputes that consequently arise will be handled by CELEXICA.

11.3 CELEXICA holds the entire IPRs to software products that will be provided to the
Government, and revisions of the software that are made by it.

11.4 The system developed by CELEXICA in this project will be under license to the
client, and its software copyrights belong to CELEXICA.

11.5 Proprietary technology pertaining to the software is owned by CELEXICA and the
ownership or naming rights to the software are not transferred to the Client. The
Client, without written consent of CELEXICA, will not sell or transfer or lease the
system or any of its components to a third party.

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Section Twelve – SIGNING

Signature;

Managing Director / CEO

Signature;

Director / CTO

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