(PDF) SMART HOME SYSTEM DOCUMENTATION

SMART HOME
AN OVERVIEW
A 2 Z home solutions
is a business venture
to provide the most
modern comfort and
security to
residential
properties by an
innovative
technology named as
“Smart Home”. As
the name indicates,
a home which is
smart in all aspects is
called “Smart
Home”. The
business module is
to provide a
technology in the
housing segment
where the client
would be able to control and monitor every equipment or system in their home through his/her mobile
or notebook.
Name any device or an equipment or a system in your home, all will be connected through internet and
can be monitored and controlled from anywhere in the world, which are in general mentioned as IOT
devices. The Internet of things(IOT) is the extension of Internet connectivity into physical devices and
everyday objects. Embedded with electronics, Internet connectivity, and other forms of hardware, these
devices can communicate and interact with others over the Internet, and they can be remotely
monitored and controlled which are the basics of a smart home. The below picture gives an idea of the
smart home connectivity.

TECHNOLOGY - SMART HOME:
Smart home systems have struggled to find a mainstream audience in the past because they require a
bit of technical savvy from their users. But these days, the fast proliferations of smartphones and tablets
provide an easy way for even tech novices to communicate with home automation gadgets and those
gadgets are currently more numerous.
Imagine a situation if all the devices in our life are connected to the internet. It can be not just
computers and smartphones, but everything in our home like clocks, speakers, lights, doorbells,
cameras, windows, window blinds, hot water heaters, heating and air conditioning, TVs, computers,
entertainment audio & video systems, security and camera systems, appliances, cooking utensils etc.
and, all those devices shall communicate, send information, and take the command. This is named as
the Internet of Things (IOT), and it's a key component of home automation and smart homes.
Smart home systems give the ability to control items around the house with a simple push of a button or
a voice command or by sensors. Lighting is a typical example which can be controlled by day light
sensors or occupation sensors or through timers.
SAFETY AND SECURITY
Security system includes surveillance cameras, intruder detection, access control to the home. The user
would be able control the arming and disarming of the alarm, as well as edit specific settings of the
alarm, such as the key code. Sitting at any part of the world we would be able to monitor our home

through the CCTV cameras and even provide access/entry to personals to our home. The intrusion
detection systems will alert the owner of any windows or doors being forced open, through the use of
electronic sensors that are connected to the system.
With the smart integrated security system, we will have the complete control in the palm of your hand.
Video monitoring gives the live complete access to our indoor and outdoor surveillance camera from our
mobile device. Also, we will receive alerts when someone trespasses to our home, the thermostat is
adjusted, or if a gas pipe bursts in the kitchen.
When a vehicle approaches the driveway of a home, the system will be able to alert the homeowner.
Also, if an automatic number plate recognition(ANPR) cameras are installed, it can read the number
plates of the vehicles and allow access by giving the opening command to the entry gates. Similarly, if
there is any movement of a trespasser during the night, the camera can focus to that area , record the
incident and even can be programmed to send an alert message to the owner.
BLINDS & SHADES CONTROL

We are defining blinds as intelligent with the knowledge of when to open and close which will enhance
the beauty of our home and setting the mood. Wake up to natural light in the morning, cool our home
when the heat is too great, and as the sun goes down, so do our blinds, providing us the privacy. The
blind will be connected to a motor which is being controlled by the program defined in the smart home
system.
AUTOMATED ENERGY MANAGEMENT
Saving the energy and thereby the environment, this is another aspect which we can achieve through
smart home. We are integrating all our devices to manage energy consumption. Smart home
automatically knows what devices are being used and what devices should be turned off in our home to
save energy and electricity.
As lighting is an integral part of a building, it plays an important role in smart home system. The user
would be able to choose the time of activation of lights when it starts to get dark through a lux sensor or
through timer. Further customization shall be done with motion detection/occupation sensor, which

would involve a person actually stepping into a room, in order to get the lights activated. This could
include a specific room in the home or all the rooms. Also, lights shall be put ON with a voice controlled
format in any of the rooms by speaking into a Bluetooth headset.
Another segment of energy management is the temperature setting. The user would be able to control
the heating and cooling of the home, through the use of both time and parameter-based functions. The
user may choose for the heating to come on when outside conditions drop below a certain temperature,
there would be heat-sensitive sensors placed outside to detect varying conditions. Similarly, air
conditioners shall be set to energy saving mode, when there is no occupancy and, in advance to reaching
back home it can be put ON from the office to set the air conditioning to a comfort level.
Smart home gives the live reports by measuring our energy consumption and our home’s total energy
usage and these details shall be used to evaluate the area wise energy consumption. Also, the power
generated by a solar system shall be measured by smart home system.
Smart home system is equally important when it comes for the external application as well. For
example, if there are plants to be irrigated, depending upon the water content of the soil, valves of the
water line can be regulated. This will save the wastage of water. External lighting can be controlled
through photo sensors. Depending upon the sunlight, external lights shall be either dimmed or put off
based on the set values.
APPLIANCES:
The power supply to all appliances like Owen, Refrigerator, cooking range, washing machine etc. shall be
controlled and monitored by smart system. In a large home this would be a very convenient feature
because there may be a lot of electrical appliances that are left on standby, hence the system should
contain a feature, which searches all power supply links in the home to determine where energy can be
saved.
ENTERTAINMENT - THEATER & HOME CINEMA
Smart home can create the perfect media room that sets the scene for us with one touch of the remote.
We can create a “Theater” setting and sit back and enjoy as your lights dim, your high-definition
projector or TV turns on, and your movie starts to stream, accompanied by the best surround sound
available.

For a fully capable smart home, entertainment features would be an innovative feature to include. The
most widely used aspect of entertainment features are the ability for subtle music to air throughout the
household and this would be very welcoming especially if a resident has had a stressful day at work.
Similarly, multi-room audio/music control system allows us to enjoy the sound of music anywhere in our
home or have different music playing in different rooms using our wireless music streaming service at
the touch of a button.
We can set our home to wake you up with our favorite song or radio station in the morning, set the
mood for the each moment, and save your favorite songs to our smart phone, touch screen, or TV. That
means smart home will allow us to add comfort and convenience to your lifestyle, and do it with style.
EXECUTIVE SUMMARY
The business module is to provide a product and solution which is helping the people to control and
monitor every equipment and systems of their home through their mobile or laptop from any part of
the world. The main components needed for this are to develop a software and a central hub which will
communicate with all the devices or systems in a home and make the home more intelligent, efficient
and economic.
The target will be high-end and mid segment clients. In this technology craving world, an idea of
controlling our home from any remote place using mobile or notebook is something a unique business
model. This will ultimately bring relaxation and savings to the user.
The advantageous are as follows which are the selling points:
a. Controlling of the Thermostat from your bed, the airport or from anywhere, provided our
smartphone has a signal.
b. Controlling of Lighting whether we are at home or at work. The Lighting solutions provide
convenient access to light control, creating a comfortable atmosphere to support our activities

throughout the day. LED lights allows us to program color and brightness right from our
smartphone
c. Cameras will track our home's exterior even if it's pitch-black outside.
d. Motion sensors will send an alert when there's motion around our house, and they can even tell
the difference between pets and burglars.
e. Door locks and garage doors can open automatically as the smartphone approaches.
f. Auto alerts from your security system will immediately go to your smartphone, so you instantly
know if there's a problem at home.
g. Feed your pets on a schedule with a preset amount of food.
h. Program your television so that your children can watch only at certain times.
i. Instantly create mood lighting for any occasion.
j. Turn on the coffee maker from bed.
k. Notify the resident when it's time to take medicine.
l. Alert the hospital if the resident needs assistance.
The above list is never ending. Depending upon the customer requirements this can be extended to any
equipment which has an IT connectivity.
GENERAL COMPANY DESCRIPTION
A 2 Z is a business establishment formed by four technocrats aiming to provide a technology to all high
end residential properties through which, they can monitor and control all the systems or equipments
in their home and have their life in a confort zone.
The capital investement shall be $300,000/- which will be equally divided between the partners. The
partners will be heading Operations, Marketing, Technical & Finance respectively.
The initial focus will be the selection of a country like India where the Economy is showing a steady
growth. Since the product is targeting mid and high end customers, initial plan is to select the city Pune.
The first task will be identifying the customer base. Our clients will be developers who are into high end
housing projects and the existing high end villas. For the first year business is to be concentrated in Pune
and from second year onwards we will be expanding to other metro cities in India. A yearly growth of
30% is anticipated.
Company has a mid-term plan to cover up other states and also to identity agents or distributors for
other states. The long term plan which will be after a period of 10years will be covering the middle-east
or any other two countries depending upon the economic trend during that period.
One of the major challenges is the Technical part. We have developed a central hub with the
Microprocessor which is the hardware and the software for the smart home system. These are
proprietary products and have taken patent. For the hardware part we have reached a tie up with a
manufacturing company who will be supplying the product based on the orders.

The main selling point of our product is that its capacity to communicate with each and every device or a
system of our home with ease. The software is able to communicate with any protocol without a gate
way for the communication. So the response and actions will be so fast and efficient.
Another advantage is that all the installations will be monitored from the company server for any
trouble shooting. In an event of any failure our service engineers also will be getting an alert signal at the
same moment and so with the permission of the client he can log into the customer Hub and fix the
problem.
FINANCIAL ANALYSIS
Income Statement 2019 2020 2021
Net Sales (Sales Revenue) 2500000 3000000 3500000
Cost of goods sold 1000000 1200000 1500000
Gross Profit 1500000 1800000 2000000
Operating Expenses 1170000 1430000 1590000
Operating Income 330000 370000 410000
Interest Expense 90000 90000 90000
Depreciation Expenses 120000 120000 120000
Net Income before taxes 120000 160000 200000
Taxes 30000 40000 50000
Net Income 90000 120000 150000
Balance Sheet Statement
Assets 2019 2020 2021
Current assets
Cash 10000 50000 70000
Accounts Receivable 1000000 800000 500000
Inventory 3000000 3500000 4000000
Total Current assets 4010000 4350000 4570000
Non-Current assets
Equipment and buildings 1200000 1200000 1200000
Less accumulated depreciation 120000 240000 360000
Total Non-Current assets 1080000 960000 840000

Total assets 5090000 5310000 5410000
Liabilities and shareholders Equity
Current Liabilities
Accounts payable 500000 600000 750000
Long term debts 900000 900000 900000
Total current liabilities 1400000 1500000 1650000
Non-Current liabilities
Notes payable 600000 690000 610000
Total Liabilities
Shareholder’s Equity
Common stock 3000000 3000000 3000000
Retained earnings 90000 120000 150000
Total shareholder’s equity 3090000 3120000 3150000
Total liabilities and shareholder’s Equity 5090000 5310000 5410000
Cash Flow
Statement
Particulars Amount (Dr.) Particulars Amount
(Cr.)
2019 2020 2021 2019 2020 2021
To Opening
Balance
300000 10000 50000 By Cash Purchases 500000 600000 750000
To Cash sales 1500000 2200000 2500000 By Operating Expenses 1170000 1430000 1590000
By interest expense 90000 90000 90000
By Taxes Paid 30000 40000 50000
By Closing Balance 10000 50000 70000
Break Even Analysis

Fixed Cost 1290000
Variable Cost 200000
Revenue 500000
BEP ( in units) 4
For accessing financial analysis, Income Statement, Balance sheet Statement, Cash Flow
Statement and Break Even Analysis is been done. All the statements are giving positive results and
company should go for selling its every home or flat for $5,00,000 each in order to earn minimum profits
of $90,000 with the minimum investment of $3,00,000.
Company will be gaining no profit and no loss when it sells 4 units i.e. 4 homes or flats for
coming up to Break Even Point. If company is selling flats above 4 than company is in profits but if it
selling below 4 flats it means that company is incurring losses which is good for the company.
In the first when company is investing $3,00,000 is earning net income of $90,000 and net cash
inflows of $10,000. Company is retaining all its profits and investing back into the company itself so as to
increase the profits of the company without giving any dividends to its shareholders which will increase
company's share price as the profits will be increased. By retaining its profits for investing back in
company is good rather than financing outside for the company because outside debt will increase the
finance cost of the company which will increase the overall cost of the company. Thus, it is better to go
for retained profits rather than taking debt from outside.