FLYON GROUP24th December 2013

PROPOSAL FOR THE INTEGRATED INFORMATION SYSTEMREALSOFTERPSOFTWARESOLUTION

No: 9092013-INKE160(Revised-2)

Tel: + (91-484) 2624991Email: sales@realsoft.inVisit us: www.realsoft.in

TABLE OF CONTENTS

A. Executive Summary ------------------------------------------------------------------------------------3

B. Background ------------------------------------------------------------------------------------------------4B.1. FLYON GROUP . ---------------------------------------------------------------------------------4B.2. Business Challenges---------------------------------------------------------------------------4B.3. Business Process ------------------------------------------------------------------------------ 5

C. Methodology-----------------------------------------------------------------------------------------------6C.1. Implementation Methodology and Tools -----------------------------------------------6

D. Scope of Work -------------------------------------------------------------------------------------------7D.1. Solutions ------------------------------------------------------------------------------------------7D.2. Project Scope -------------------------------------------------------------------------------------7

E. Functional Scope -----------------------------------------------------------------------------------------7E.1. Functional Scope -------------------------------------------------------------------------------8

F. Project Management ---------------------------------------------------------------------------------- 10

F.1. Project Management Plan ------------------------------------------------------------------ 10

G. Commercials ------------------------------------------------------------------------------------------- 11

G.1. License and Maintenance fee ------------------------------------------------------------ 11

G.2. Implementation Service Terms and Conditions ------------------------------------ 11

H. Critical Success Factors------------------------------------------------------------------------------ 13

H.1. Critical Success Factors ------------------------------------------------------------------- 13

H.2. Commitments from FLYON GROUP .for the success -------------------------------- 14

EXECUTIVE SUMMARY

The RealSoft Implementation initiative at FLYON GROUP.represents a strategic program which iscritical to the successful delivery of the RealSoft solution. Coral Solutions (CORAL) is committed toworking with FLYON GROUP.to deliver a successful RealSoft Implementation; we believe ourpartnership will be extremely strong.

This proposal is for the implementation of the first phase of RealSoft Enterprise solution and forlicense of the software. The first phase of the implementation will be for the company in Thrissur .

CORAL proposes to a technology platform will enable FLYON GROUP.to reduce the total cost ofownership in the long run and also to provide for a bridge to connect current and future systems.

The RealSoft implementation project envisages an implementation time of two months for Golive for the Thrissur office followed by a 2 week onsite support period. Since this project involvesan investment of time of the functional users from various functional areas, the timelines proposedare those which are achievable and yet do not disrupt regular business activities of FLYONGROUP.. This implementation will cover the Commercial modules of Finance, Accounts, Inventory,Purchase, Project Management, Job Costing, HR, Payroll, Time Sheet, Contracting, TenderManagement and Administrative modules, Sales.

B. BACKGROUNDB.1. FLYON GROUP.

A celebrated name in the field of electrical contracting and cable tv servies, one of thefastest growing contractors and service providers in Kerala, with over decades of experience in thebusiness of electrical contracting, cable tv services and construction, FLYON GROUP. Havecompleted a wide variety of projects and have a huge customer base.With a team of efficient and dedicated engineers, supervisors and other officials, FLYON GROUP.Leaves no stone unturned.

B.2. Business ChallengesFLYON GROUP. Has been using different softwares and manual process for their day-to-dayoperations. However the Management of FLYON GROUP. Has found that the information and theoutput from the existing system is not to their specific requirements and FLYON GROUP.Approached Coral Business Solutions to address the strategic and operational challenges faced bythe organization and to take into account the information needs of the organization. Some of thechallenges faced by the company are listed below:

�G. . StrategicTimely availability of integrated information across the companyAnalytic reports – by branches, projects, lines of business, market segments and customersFinancial metrics for the entire companyMaking full company automation

II) Tactical and Operational

Coral Business Solutions with their RealSoft ERP package will attempt to address theseneeds in order to be able to assess the fit of the RealSoft ERP package, Coral Business Solutionsconducted a study in their Thrissur office for all accounting and commercial functions of theenterprise. These are listed out in detail in the section scope of work in this document.

B.3BUSINESS PROCESS

Actual business process will be studied by Coral’s Implementation Engineers .They will design awork flow and based on that implementation will be carried out.

C. METHODOLOGY

C.1. Implementation Methodology and Tools

CORAL Implementation MethodologyCORAL Methodology –for Rapid Successful ImplementationThe CORAL implementation methodology is a phased, process oriented methodology, and is theumbrella for CORAL’s toolset that streamlines implementation projects and minimizes risk. TheMethodology takes a disciplined step-by-step approach to project management, supporting projectteams’ with templates, tools, questionnaires/checklists, including technical guidebooks andaccelerators. It empowers companies to exploit the power of the accelerated features and toolsalready built into Coral Solutions.

Benefits of using the methodology include:

Faster implementations

More reliable projects by following a structured approach

Lower risk

More efficient use of resources

Reduced costs

Effective project management based on PMI-aligned templates

CORAL Professional Services drives the success of all projects using its methodology, whichsequences the entire project lifecycle into five key and non-overlapping phases:

1. Initiate

2. Design

3. Implementation

4. Deliver

5. Support

Key Activities in the Phases as per the MethodologyPHASE 1 – INITIATE

During this phase, project goals, a high level scope and a project plan are defined and theimplementation strategy is defined and approved. At the same time, the project procedures,standards, organization and staffing are finalized. Roles and responsibilities of the entire projectteam are agreed upon and documented as are the deliverables and the appropriate sign offauthorities. The Project Charter is documented and signed off as a part of this methodology.

PHASE 2 – DESIGN

In this phase, all functional and technical key designs are documented in, the Business SolutionDesign document. This phase is lead by functional and industry experts from CORAL Professionalservices. A key part of this process is to conduct a series of requirements and process workshopswith all key project resources to ensure the resulting business process design is effective, efficient,simple and complete. An important activity addressed is the data conversion strategy whichincludes identification of data sources, data cleansing and conversion procedures.

PHASE 3 – IMPLEMENTATION

In the implementation phase, the RealSoft system will be configured to meet the solution designrequirements as decided in the previous phase. A pilot system will be designed which representsthe core business process settings. This is verified by the key functional team users assigned to theproject. All development such as interfaces, data conversion programs, reports, and any requiredcustomizing is built. Legacy data conversion programs are created and tested. Test cases arecreated along with a test plan, which is used to manage an extensive testing process. All systemsare tested thoroughly in this phase using test scripts covering the entire business scenario.

PHASE 4 – DELIVERY

In this phase detailed transition and cutover plans are created and executed. The productionsystem is installed and setup with sample and data developed during the project. An internal helpdesk mechanism to address issues in Go Live will be created as a part of this phase.

PHASE 5 – SUPPORT

An easily accessible production support organization must be in place to support the end usercommunity, not just for the first critical days of production operations, but also for long-term support.

Finally, the completed project is closed, and support responsibility is passed to the internal helpdesk organization.

D. SCOPE OF WORKUnderstanding of Scope of RealSoft Professional ServicesFrom business point of view, FLYON GROUP. Expects to implement RealSoft ERP solution in theirThrissur office. In this proposal, the details for Phase I are highlighted. Some of the guidingprinciples for working out the scope of the project are:

% Provide accurate financial and inventory reporting of data for effective monitoring

% Provide the backbone for implementing any other Coral Solutions in the future

D.1. SolutionsOverviewThis section covers the indicative solution that is required by FLYON GROUP.. The solution fit toFLYON GROUP.business requirements are discussed separately in the corresponding sectionsunder Project Scope, as well as our current understanding of the envisaged integration scenarioand landscape. Further project-level activities are required to refine this understanding, and plannedduring the Initiate phase and Design phase.

D.2. Project ScopeThe purpose of this section is to clearly state the scope of the project so that it can be understoodby FLYON GROUP.steering committee and evaluation team.

The CORAL implementation will be carried out on the RealSoft version 1.6.315 software. Thefollowing is the scope statement serving as the foundation for the resource estimate.

Enterprise ScopeThe geographical and organizational scope of the project would be as follows:

Organizational scope: FLYON GROUP.Geographical scope: FLYON GROUP. Offices – Thrissur

E.1 FUNCTIONAL SCOPEIdentifying assumptions at the outset of the project helps to ensure that CORAL meets FLYONGROUP.critical requirements and expectations. Accordingly, CORAL has made the followingassumptions about scope based on the information provided by FLYON GROUP.and Coral’s earlierexperiences with similar system implementations. All the assumptions will be listed in the technicaldocument of the project and it will be agreed and signed between the authorities in advance.

General Assumptions1. The initial implementation will focus on meeting the most critical business needs, andstandardizing process. As such, FLYON GROUP.needs to support a culture of teamwork, in whichevery desire of every user will be satisfied during the implementation.

2. FLYON GROUP.will provide administrative support to aid in the creation and maintenance ofproject documentation, communications and schedules.

3. All documentation and related materials will be developed in English.

4. All deliverables will be developed for industry standard Microsoft Windows-based PCs usingappropriate Microsoft Office applications (Microsoft SQL Server 2005 and Excel). CORAL will

provide project team members the necessary hardware and software to develop these deliverables.Microsoft SQL Server is the back-end database using for the solution and FLYON GROUP.shouldprovide this application with appropriate server machine. The costs associated with developing anymaterials using other software or hardware will be reviewed separately with FLYON GROUP.

5. Any data cleansing or data cleanup is wholly the responsibility of FLYON GROUP..

6. FLYON GROUP. Will provide data-entry resources to load conversion data if it is mutually agreedthat this is the most efficient method

Environment and Access Assumptions1. FLYON GROUP.will provide any unique hardware or software required for access to its CORALsolution(s), other information systems, or FLYON GROUP.networks.

2. CORAL will be provided with full access to FLYON GROUP.facilities necessary for the project,including all necessary identification material (badges, cards, etc). This includes full access tobuildings and systems during and after normal business hours, on weekends, and on holidays.Limitation of CORAL access during these times may reduce Coral’s ability to maintain proposedschedule.

Project Team Training Assumptions1. FLYON GROUP.will provide any needed classrooms or conferencing systems for end usertraining and will take responsibility for ensuring that networked computers in the classroomsfunction properly.

2. The success of the project is largely dependent on FLYON GROUP.providing access to keyemployees, conducting rapid technical reviews, and granting approvals of draft materials. FLYONGROUP.and CORAL will agree on turnaround requirements during the project’s analysis phase.

Time and Cost Overrun AssumptionsCORAL has assumed two month implementation period for Go live followed by two weeksimplementation support period after the implementation.

CORAL shall charge and FLYON GROUP.shall compensate CORAL for the time and cost overrunas per the average man day rate of this project, for the period of delay as the commercial proposal.All delay as and when proactively identified by CORAL Project Manager or FLYON GROUP.ProjectManager will be brought to notice of the other party immediately, and the subsequent impact of thedelay in terms of cost and time overrun will be calculated and presented to the steering committeeor project sponsor whoever is available.

If the delay however, is directly and solely attributable to CORAL, CORAL shall complete alldeliverables as per the Project Plan without any extra charges to the Licensee.

All delays, as and when proactively identified by any of the Project Managers will be broughtto the notice of the other party on a regular basis.

F. PROJECT MANAGEMENT

F.1. Project Management PlanOne of the key factors in successfully delivering the FLYON GROUP.project will be establishing astructured and disciplined project management capability. Coral’s comprehensive approach toproject management focuses on jointly defining project expectations, managing progress againstplan, completing deliverables as efficiently and effectively as possible, and achieving the expectedproject results.

Project ApproachProposed Project Timeline:CORAL will work with FLYON GROUP.to ensure that the RealSoft solution offering is delivered inthe first phase for the Thrissur and other sites

In accordance with the project plan, the timelines for the implementation is as follows:

IMPLEMENTATION TIMELINES

Phase/ ElapsedDays

1-7 8-14 15-45 45-60

InitiateDesignImplementDeliver & Support

*** Note: This implementation project will be the first phase in the Thrissur . It is envisaged that Golive will be at the end of the 8th week period. Thereafter, two week onsite support period is assumedin the proposal.

The proposed approach for the FLYON GROUP. Implementation project consists of the followingphases.• Initiate – the organization, project processes, and technology components are prepared to beginthe implementation.• Design – this phase focuses on design, gap assessment and tailored fit.• Implementation– the primary objectives of this phase are to finalize building and testing of thetailored design and continue knowledge transfer.• Deliver – this phase focuses on preparing the business and systems for go-live and post support.• Support Phase – the system is cutover into a production environment initiating the beginning offormal support

G. COMMERCIALSG.1. License and Maintenance feeRealSoft license fee for their Thrissur location is offered to FLYON GROUP. On a special basis.The license fee for the Head office is following:

Particulars Qty Fees Amount(INR)

RealSoft License Fee for Electrical Contracting 1 1,60,000 1,60,000

Realsoft License Fee for General Contracting 1 60,000 60,000

Realsoft License Fee for Cable Network 1 1,30,000 1,30,000

Implementation Charges 1 30,000 30,000

Special Discount 30,000 30,000

(INR Three Lakh and Fifty Thousand only) Total 3,50,000

This fee includes a free 12 month warranty from the date of initial installation at the respective sites.Maintenance fee will be optional at 20% of the prevailing list price at the time of expiry of thewarranty period. Project Customization beyond the scope of present requirements or additionalmodules will be charged additional as amendment.

Payment Schedule for License and maintenance feeFor License fee, the payment terms are as follows:Milestone Billing Percentage

Milestone Billing Amount (%)

At the time of release of the Purchase order for License fee 40%

After Training 30%

On System Live 30%

G.2. Implementation Service Terms and ConditionsPayment TermsFLYON GROUP. needs to make payment within 7 working days from the date of submission ofinvoice.

Mobilization of Implementation TeamCORAL would require a mobilization time of one weeks from the time of signing the Purchase Order/ Professional Services Agreement to start the project.

Quality AssuranceThe relevant Quality Assurance policies and procedures for this project are incorporated underproject plan and have been described under corresponding sections earlier in the proposal. CORALwill work closely with FLYON GROUP.to ensure that such policies and procedures are followed.

Project OfficeThe project office is assumed to be in FLYON GROUP.office in Thrissur

Project Holidays and Other EventsThe project timeline indicated in the corresponding section refers to overall project duration, whichneeds to be adjusted accordingly depending on project commencement date and public / projectholidays.

Should the project target require CORAL and FLYON GROUP.project team members to work oncertain holidays, the same will be discussed by the project managers of CORAL and FLYONGROUP.and mutually agreed.

Working Hours and DaysThe project timeline indicated in the corresponding section have been estimated taking into accountnormal CORAL working days. In case the Project Manager or Consultants are required to takeleave or participate in other internal CORAL events, such schedules Manager will be communicatedwell in advance to FLYON GROUP..This will be as per mutually agreed upon schedules and willensure that Project deliverables are not compromised.

Acceptance of Deliverables by FLYON GROUP..CORAL’s deliverables submitted shall be reviewed and signed-off within five working days ofsubmission. The deliverables will be taken as accepted at the end of the said period, if there is nofeedback within this period.

Project CommencementOn acceptance of this proposal FLYON GROUP. and CORAL will enter into an ImplementationServices Agreement as per the standard service agreement of CORAL, which will be signed within15 days of formal acceptance of the proposal communicated through a Purchase Order.

Please note that CORAL shall mobilize the resources only after the agreement is signed. CORALwill require a lead-time of 1 week to mobilize the resources from receipt of the formal purchaseorder.

Project ExtensionsIn the event of delays of the deliverables by the Policy Team or the Change Management teambeyond the CORAL project timelines FLYON GROUP.shall compensate CORAL for the additionaleffort arising out of such extensions.

In the event of any extensions in the Project Schedule or delay on account of items beyond thescope of the Project as defined in proposal, here to, FLYON GROUP.shall compensate CORAL forthe additional effort arising out of such extensions. The rate applicable for project extensions will bethe average man-day rate for the project.

Change ControlThe efforts and cost estimates given are for fixed scope, man-days, and timeline. Any scopechanges or any changes in assumptions listed, or any delay caused by FLYON GROUP.which hasdirect impact on efforts estimate of CORAL, will be brought to the notice of FLYON GROUP.ProjectManager / Steering Committee through monthly status report. CORAL and FLYON GROUP.willjointly discuss to mitigate the impact. In the case where total CORAL efforts (man-days) need to beincreased to cater to the additional work, FLYON GROUP.will need to compensate CORALadditionally, as per the rates agreed in the contract.

ValidityThe prices and terms offered are valid for a period up to 7 days from the date of this proposal.

H.1. Critical Success FactorsThe nature of an enterprise wide implementation indicates a shortened timeframe and the need toprogress at a reasonably rapid pace. The following list outlines the key critical success factors thatare needed in the FLYON GROUP.implementation project.

• Talent. The quality of the project team impacts the quality of the implemented solution. The goalfor FLYON GROUP.should be to have the best, most talented resources of the organizationdedicated to the RealSoft implementation. They must be empowered to resolve key issues in atimely manner.

• Ownership. Visible and ongoing management ownership of the project is crucial. Seniormanagement should be active participants in the Project Executive Steering Committee, ensuringthat effective decisions take place. Additionally, every Project Team member must feel responsiblefor the overall success of the project.

• Partnership. This project will bring together resources from many areas of the FLYONGROUP.organization, as well as from CORAL. The project structure represents variousorganizational and technical perspectives and must be supported to provide explicit issue resolutionand an environment of teamwork.

• Scope. The boundaries and objectives of this implementation have been clearly defined andcommunicated in this document. There should be no doubt as to the goals the project needs toachieve and the commitment required for success.

• Knowledge Transfer. The transfer of knowledge from the RealSoft consultants to project teamsand to the end user community must be managed effectively. Knowledge of the solution should beviewed as a valuable organizational asset given the potential value and extent of the integrationwith other processes. Extensive end user training will be required to ensure the successfuloperation of the RealSoft installation.

• Acceptance. The transition to the RealSoft solution will involve change in the work environment ofboth the user and systems personnel. Building commitment to this change is an importantresponsibility of both the Executive Steering Committee and the project team. Solid acceptance andcommitment require time. In addition specific actions must be planned and executed at each stageof the implementation process.

• Empowerment. Quick decision-making to resolve issues is critical to meeting project deliverables.All team members must be empowered to make decisions and resolve issues as they arisethroughout the project lifecycle Experience has shown that the following additional factors will play acritical role in the success of the FLYON GROUP.RealSoft implementation:

• The need to develop a business case with strategic and tangible benefits• Focus on the organization and team scope• Insistence on visible, real, top management involvement during and after theimplementation• Adequate emphasis on change management• Implementation of creative project team incentives which extend into the postimplementation period• Rigorous project and partner management• Reengineer in correct dosages• Pay attention to demanding training/support needs during and after implementation: trainand retrain.

• Free exchange of information within the team, and the communication of overall projectnews throughout the organization.

Use the business case to track performance and manage change• Identify and define ownership of the benefits—go beyond signoff• Keep everyone focused on benefits and capabilities, not just the “go-live”• Align expectations of benefits timing at all levels: make the implicit explicit• Extend the planning horizon beyond go-live

H.2. Commitments required from FLYON GROUP.for success of thisprojectIn order to ensure that the project is successful, the following commitments are required from thesenior management of FLYON GROUP..1. A Steering Committee of Senior Company management will be in place to guide and advise theProject Team.2. The project team, including FLYON GROUP.project team members and CORAL project teammembers will be co-located at FLYON GROUP.facility at Thrissur .3. Policy decisions will be made within strict turn around guidelines, normally within 24 to 48 hours.4. All deliverables will be signed off within 5 working days from their submission as per the ProjectPlan5. Weekly or Fortnightly status reports and regular team meetings will be held to facilitate thecommunication of the project status and deliverables; these will be completed/attended by all keyteam members.

FLYON GROUP.staff has knowledge of the existing legacy systems from a technical perspective.Additionally, it is anticipated that any support from other Company entities, as might be needed(infrastructure, network, desktop support), will be available to the project team and will not detrimentCoral impact the project timeline.

(Authorized Signature) (Authorized Signature)Coral Business Solutions FLYON GROUP