Business Plan Sample

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Business Plan Sample

  1. 1. TARAhaat Information & Mark New Delhi, Ind OPERATIONAL AND FINANCI FY 2010 - 11 through FY 2 Prepared August 20 STRICTLY CONFIDENTIAL. NOT F INSTRUCTIONS TO USER Number These are input cells and can be changed. Text These are information cells and SHOULD NOT be changed. Number These are output cells are SHOULD NOT be changed. Please refer to "Model Flow" to understand the structure of the model. For running sensitivity, please utilize the option provided in "Summary". For running equity infusion & debt related exercises, please refer to "Cash Flow (INR)" and "Funding Details
  2. 2. on & Marketing Services Limited New Delhi, India ND FINANCIAL PROJECTIONS 0 - 11 through FY 2017 - 18 Prepared August 2009 IDENTIAL. NOT FOR CIRCULATION. INR)" and "Funding Details" respectively.
  3. 3. d
  4. 4. P&L Statement Franchisee Fees Marketing Expenses Product Development Cost Training Institute P&L Consultancy AO P&L Other Revenue Lines ZO Annual Expenses HO Annual Expenses TK Capacity Utilization Employee Headcount AO & ZO Employee Headcount HO Business Expansion Sizing Opportunity
  5. 5. Balance Sheet Cash Flow Depreciation Other Revenue Lines TK Capacity Utilization TK Total Capacity Sizing Opportunity Assumptions
  6. 6. Cash Flow Working Capital Security Deposit ation Capex HO Capex ZO Capex AO
  7. 7. Summary Information Monetary Values in INR '000 Select Scenario Here Base Case Scenario (BC) Normal Case 100% 100% FY09A FY10E FY11P FY12P FY13P FY14P FY15P FY16P FY17P FY18P OPERATIONAL INFORMATION Number of TARA Kendras (TK) Added (19) 106 155 544 934 1,267 1,683 1,749 2,096 1,897 Number of TARA Kendras (TK) Cumulative 130 236 391 935 1,869 3,136 4,819 6,568 8,664 10,561 Number of Area Offices (AO) Added 2 - 14 20 20 25 25 25 25 18 Number of Area Offices (AO) Cumulative 9 9 23 43 63 88 113 138 163 181 TKs per AO 14 26 17 22 30 36 43 48 53 58 Number of Zonal Offices (ZO) Added 2 2 2 3 3 3 3 - Number of Zonal Offices (ZO) Cumulative - - 2 4 6 9 12 15 18 18 AOs per ZO 12 11 11 10 9 9 9 10 Total Headcount (HO) 27 27 47 57 61 63 63 65 66 68 Total Headcount (Field) 83 83 219 431 730 1,124 1,536 1,981 2,446 2,845 Total Headcount (Field) Growth (%) 0% 164% 97% 69% 54% 37% 29% 23% 16% Total Students Placed 633 6,310 22,708 38,100 97,581 133,004 175,450 213,868 Total Placement Staff (All AOs) 14 34 68 113 172 242 326 414 Students Placed Per AO Placement Staff Per Month 4 15 28 28 47 46 45 43 FINANCIAL INFORMATION Total Revenue 16,648 17,140 80,864 186,275 377,056 659,699 1,149,827 1,738,377 2,434,138 3,212,570 Revenue growth (%) 372% 130% 102% 75% 74% 51% 40% 32% EBIDTA (3,106) (4,010) (31,692) (32,775) 10,373 117,451 324,125 582,470 893,044 1,256,169 EBIDTA Margin (%) -19% -23% -39% -18% 3% 18% 28% 34% 37% 39% Net Profit / (Loss) (2,576) (3,960) (37,380) (45,792) (11,162) 79,298 200,306 358,008 565,418 808,157 Net Profit Margin (%) -15% -23% -46% -25% -3% 12% 17% 21% 23% 25% TK Related [Field] Revenue 8,272 12,940 42,959 131,210 324,852 619,687 1,100,994 1,661,763 2,326,015 3,064,648 Revenue per TK 64 55 110 140 174 198 228 253 268 290 Revenue per TK growth (%) -14% 101% 28% 24% 14% 16% 11% 6% 8% Revenue per AO 1,850 1,904 3,516 4,332 5,985 7,497 10,175 12,597 14,933 17,749 Revenue per AO growth (%) 85% 23% 38% 25% 36% 24% 19% 19% EBIDTA per AO (345) (446) (1,378) (762) 165 1,335 2,868 4,221 5,479 6,940 Revenue Per Employee (Field) 100 156 196 304 445 551 717 839 951 1,077 Revenue Per Employee Growth (%) 56% 26% 55% 46% 24% 30% 17% 13% 13% TKs per field employee 1.57 2.84 1.78 2.17 2.56 2.79 3.14 3.32 3.54 3.71 Marketing Spend per TK 9.05 10.97 13.75 15.56 18.06 19.87 20.97 22.58 Summary businessplansample-091111061657-phpapp02.xls 7 of 158
  8. 8. Funding Details (INR '000) FY11P FY12P FY13P FY14P Total Capital Required 85,000 90,000 60,000 Fixed Assets 28,555 49,115 58,969 72,238 Total Debt Available (xFA) 0.75 0.75 0.75 0.75 Total Debt Possible [1] 21,417 36,836 44,227 54,179 Debt Portion 20% 30% 40% 0% Debt Raised 17,000 27,000 24,000 - Total Debt 18,200 44,000 68,000 68,000 Repayment Schedule 0% 0% 0% 20% Repayment 1,200 13,600 O/S Debt 17,000 44,000 68,000 54,400 12% 12% 12% 12% Interest Cost Accrued 2,040 3,660 6,720 7,344 Interest Paid - - - 19,764 EBIT (35,340) (42,132) (4,442) 96,774 Interest Coverage Ratio (17.32) (11.51) (0.66) 3.57 Debt Service Coverage Ratio (10.91) (11.51) (0.66) 4.62 Equity Raised 68,000 63,000 36,000 0 Total Equity 103,298 166,298 202,298 202,298 Debt / Equity 0.18 0.26 0.34 0.34 [1] Based on the assumption that a bank will not extend more debt than 0.75x Net Fixed Assets as collatera FUND UTILIZATION SCHEDULE (INR '000) Total Capital Raised 85,000 90,000 60,000 Capex 31,825 29,917 24,669 86,411 Repayment of Debt 1,200 - - 1,200 Working Capital 1,012 4,390 15,094 20,496 Opex 50,963 55,694 20,237 126,893
  9. 9. FY15P FY16P FY17P FY18P TOTAL USD ('000) 235,000 5,000 78,695 76,826 70,646 52,111 0.75 0.75 0.75 0.75 59,022 57,619 52,985 39,084 0% 0% 0% 0% - - - - 68,000 1,447 54,400 40,800 27,200 13,600 20% 20% 20% 20% 13,600 13,600 13,600 13,600 40,800 27,200 13,600 - 12% 12% 12% 12% 5,712 4,080 2,448 816 5,712 4,080 2,448 816 296,662 551,930 863,472 1,228,837 25.97 67.64 176.36 752.96 15.36 31.22 53.81 85.24 0 0 0 0 167,000 3,553 202,298 202,298 202,298 202,298 0.27 0.20 0.13 0.07 et Fixed Assets as collateral. 37% 1% 9% 54%
  10. 10. Discounted Cash Flow Analysis (INR '000) FY11P FY12P EBIDTA (31,692) (32,775) Less: Taxes - - Less: Capex 31,825 29,917 Less: Increase in WC 1,012 4,390 Net Operating Cash Flow (64,529) (67,082) Capital Cash Flow (64,529) (67,082) Net Present Value of Cash Flows 1,427,776 Post-Tax IRR 81% INR '000 USD '000 Post Money Enterprise Value (as on Mar 31, 2010) 1,427,776 30,378 Less: Debt 1,200 26 Add: Cash 600 13 Post Money Equity Value (as on Mar 31, 2010) 1,427,176 30,365 Equity Investment 167,000 3,553 Stake (%) 11.70% 11.70% Sensitivity of Enterprise Value (USD '000) to Changes in Cost of Debt & Cost of Equity 20% 23% Cost of Equity 25% 27% 30%
  11. 11. FY13P FY14P FY15P FY16P FY17P FY18P 10,373 117,451 324,125 582,470 893,044 1,256,169 - 10,132 90,644 189,842 295,605 419,864 24,669 33,945 33,921 28,670 23,392 8,798 15,094 26,094 40,116 44,998 52,937 57,705 (29,390) 47,279 159,445 318,959 521,109 769,803 (29,390) 47,279 159,445 318,959 521,109 5,734,764 t of Equity Cost of Debt 10% 11% 12% 13% 14% 40,340 39,945 39,554 39,167 38,785 34,395 34,063 33,735 33,410 33,088 30,967 30,671 30,378 30,088 29,802 27,908 27,644 27,382 27,123 26,867 23,917 23,694 23,473 23,253 23,037
  12. 12. Terminal Value 4,964,961
  13. 13. Assumption Set (INR) Inflation Rate (%) 5% Exchange Rate (INR / USD) 47 Corporate Tax Rate (%) 33.99% Minimum Alternate Tax Rate (%) 11.33% Max. Computer Time/Day (Hours) 10 No. of Students per Computer 2 Average Duration of a Course (Hours) 96 Value Per Student Per Hour (At Full Capacity): Computers TARAkendras Type (Nos.) Type A 15 Type B 10 Type C 5 FY11P Capacity Utilization for Newly Established Units Type A 30% Type B 30% Type C 30% No of Students at Estimated Capacity Utilsation Type A 9 Type B 6 Type C 3 Revenue Share Arrangement AOs Revenue share 25% TK's Retained Earnings 75% Contribution of TARAkendras to Area 0ffices (AO) Type A 55% Type B 31% Type C 14% Capacity Utilization for Newly Established Units (Weighted Average) Type A 11% Type B 12% Type C 6% Revenue Share Accruing To AO Type A 42,188 Type B 46,875 Type C 21,094
  14. 14. Total 110,156 Other Services (%) 30% Other services 33,047 Revenue Share Accruing To AO 0% Revenue Accruing To AO - TK's Additional Services (%) Type A 5% Type B 5% Type C 5% Manpower Training Costs Induction training (for New Joinees) Costs 30,000 Refresher training 15,000 Franchise Fees for New TK's Type A 26,000 Type B 18,000 Type C 15,000 Franchise Fees for New TK's Type A 5,200 Type B 7,200 Type C 6,000 Total 18,400 Franchise Fees for Existing TK's Type A 26,000 Type B 18,000 Type C 15,000 Franchise Fees for Exisitng TK's Type A 5,200 Type B 7,200 Type C 6,000 Total 18,400 FF becomes due but not paid at the end of the year 10% Security Deposits Type A 5,000 Type B 5,000 Type C 4,000 Security Deposits Type A 1,000 Type B 2,000 Type C 1,600
  15. 15. Total 4,600 Marketing Budget (as a % of Revenue Share) 10% Assumptions for Job Placements Number of Students Registering For Placements 10% Placement Registration Fees - % of Placement Registration Fees Accruing To AO 10% Of Those Registered, No. Of Students Getting Placed 10% Actual salary of placed student per month 3,500 Incremental salary of placed student per month 1,000 Placement Fees @ Half Month's Salary (from Employer) 1,750 % of Placement Fees Accruing To AO 75% Additional Assumptions for Social Value Creation Imputed Earnings of Students Not Registering For Placement 1,250 Improvement in Imputed Earnings 5% Value Added Per Query Through Query Response (INR) 1 Value Added Per Rupee Of E-Commerce Transactions (INR) 0.20 Discounted Cash Flow Assumptions Steady State Growth Rate 5.00% Debt / Equity 0.22 Cost of Debt 12.00% Cost of Equity 25.00% Tax Rate 33.99% WACC 21.28%
  16. 16. Course Duration Course Fees Revenue / Hour Hours / Day (Hrs) (Rs.) (Rs.) 10 96 3,000 31 10 96 2,500 26 10 96 2,250 23 FY12P FY13P FY14P FY15P FY16P 50% 60% 60% 60% 60% 50% 60% 60% 60% 60% 50% 60% 60% 60% 60% 15 18 18 18 18 10 12 12 12 12 5 6 6 6 6 25% 25% 25% 25% 25% 75% 75% 75% 75% 75% 55% 55% 55% 55% 55% 31% 31% 31% 31% 31% 14% 14% 14% 14% 14% 11% 11% 11% 11% 11% 12% 12% 12% 12% 12% 6% 6% 6% 6% 6% 73,828 93,023 97,675 102,558 107,686 82,031 103,359 108,527 113,954 119,651 36,914 46,512 48,837 51,279 53,843
  17. 17. 192,773 242,895 255,039 267,791 281,181 25% 20% 20% 20% 20% 48,193 48,579 51,008 53,558 56,236 0% 0% 0% 0% 0% - - - - - 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 31,500 33,075 34,729 36,465 38,288 15,750 16,538 17,364 18,233 19,144 32,000 42,000 48,000 48,000 49,500 21,000 27,500 31,000 31,000 31,500 18,000 23,000 25,500 25,500 25,500 6,400 8,400 9,600 9,600 9,900 8,400 11,000 12,400 12,400 12,600 7,200 9,200 10,200 10,200 10,200 22,000 28,600 32,200 32,200 32,700 32,000 38,000 44,000 44,000 44,000 21,000 24,000 27,000 27,000 27,000 18,000 21,000 24,000 24,000 24,000 6,400 7,600 8,800 8,800 8,800 8,400 9,600 10,800 10,800 10,800 7,200 8,400 9,600 9,600 9,600 22,000 25,600 29,200 29,200 29,200 8,000 12,000 8,000 10,000 6,000 8,000 1,600 2,400 3,200 4,000 2,400 3,200
  18. 18. 7,200 9,600 9% 9% 9% 9% 9% 25% 25% 25% 25% 25% - 100 100 100 100 10% 10% 10% 10% 10% 10% 15% 15% 25% 25% 3,675 3,859 4,052 4,254 4,467 1,100 1,210 1,331 1,464 1,611 1,838 1,929 2,026 2,127 2,233 75% 75% 75% 75% 75% 1,288 1,324 1,360 1,395 1,428 5% 5% 5% 5% 5% 1 1 1 1 1 0.20 0.20 0.20 0.20 0.20
  19. 19. FY17P FY18P 60% 60% 60% 60% 60% 60% 18 18 12 12 6 6 25% 25% 75% 75% 55% 55% 31% 31% 14% 14% Weight 11% 11% 20% 12% 12% 40% 6% 6% 40% 113,071 118,724 125,634 131,916 56,535 59,362
  20. 20. 295,240 310,002 20% 20% 59,048 62,000 0% 0% - - 5% 5% 5% 5% 5% 5% 40,203 42,213 20,101 21,107 49,500 49,500 31,500 31,500 25,500 25,500 Weight 9,900 9,900 20% 12,600 12,600 40% 10,200 10,200 40% 32,700 32,700 44,000 44,000 27,000 27,000 24,000 24,000 Weight 8,800 8,800 20% 10,800 10,800 40% 9,600 9,600 40% 29,200 29,200 Weight 20% 40% 40%
  21. 21. 9% 9% 25% 25% 100 100 10% 10% 25% 25% 4,690 4,925 1,772 1,949 2,345 2,462 75% 75% 1,459 1,488 5% 5% 1 1 0.20 0.20
  22. 22. Profit and Loss Statement (INR '000) FY08A FY09A FY10E Revenue Education Related Services (TKs) 4,815 5,953 10,580 Franchisee Fee (TKs) 2,011 2,318 2,360 E-Commerce - - - Query Response - - - TARA Akshar 178 5,990 2,926 Training Institute - - - Market Research - - - Advertising - - - Projects 7,498 2,387 1,274 Insurance Commissions - - - Total Revenue 14,502 16,648 17,140 Growth Rate % 15% 3% Expenses Salaries 12,946 12,818 10,789 Other Operating Expenses 6,047 4,437 9,013 Marketing expenses 280 194 Product Development Expenses [#] - - TARA Akshar Costs 2,305 1,347 Insurance Commission Costs - - - Total Expenses 19,273 19,755 21,150 Growth Rate % 3% 7% EBITDA (4,771) (3,106) (4,010) Margin % -33% -19% -23% Other Income 1,075 838 300 Depreciation 207 140 100 EBIT (3,903) (2,409) (3,810) Interest - - 150 EBT (3,903) (2,409) (3,960) Tax 162 167 - Net profit (4,065) (2,576) (3,960) Margin % -28% -15% -23% Accumulated Profit/(Loss) (35,073) (37,650) (41,610) [#] For FY10E, Product Development Expenses are included in Manpower Cost
  23. 23. FY11P FY12P FY13P FY14P FY15P FY16P 35,340 113,966 285,616 542,090 966,783 1,450,421 7,618 14,918 31,880 59,640 96,894 144,550 - 352 1,193 3,109 6,375 11,436 - 1,406 4,069 9,114 17,742 31,128 36,698 52,426 47,184 33,028 34,680 48,552 187 639 1,634 3,430 10,191 23,445 - - 200 240 480 960 - - 187 314 482 657 1,020 2,000 3,000 3,000 3,000 3,000 - 569 2,095 5,734 13,200 24,228 80,864 186,275 377,056 659,699 1,149,827 1,738,377 372% 130% 102% 75% 74% 51% 56,393 113,044 200,358 305,762 469,279 652,363 23,329 53,480 102,201 158,784 235,250 323,667 3,534 10,257 25,705 48,788 87,010 130,538 1,300 1,300 1,400 1,400 2,250 2,250 28,000 40,000 36,000 25,200 26,460 37,044 - 970 1,019 2,314 5,451 10,045 112,556 219,051 366,683 542,248 825,702 1,155,908 432% 95% 67% 48% 52% 40% (31,692) (32,775) 10,373 117,451 324,125 582,470 -39% -18% 3% 18% 28% 34% 3,648 9,357 14,815 20,677 27,463 30,540 (35,340) (42,132) (4,442) 96,774 296,662 551,930 2,040 3,660 6,720 7,344 5,712 4,080 (37,380) (45,792) (11,162) 89,430 290,950 547,850 - - - 10,132 90,644 189,842 (37,380) (45,792) (11,162) 79,298 200,306 358,008 -46% -25% -3% 12% 17% 21% (78,990) (124,782) (135,944) (56,646) 143,660 501,668
  24. 24. FY17P FY18P 2,018,666 2,649,897 202,721 261,981 18,270 27,178 49,463 74,476 67,973 95,162 34,364 44,864 1,920 3,840 866 1,056 3,000 3,000 36,895 51,116 2,434,138 3,212,570 40% 32% 869,542 1,109,727 421,809 514,639 181,680 238,491 2,250 2,250 51,862 72,606 13,952 18,689 1,541,095 1,956,401 33% 27% 893,044 1,256,169 37% 39% 29,572 27,332 863,472 1,228,837 2,448 816 861,024 1,228,021 295,605 419,864 565,418 808,157 23% 25% 1,067,086 1,875,243
  25. 25. Cash Flow Statement (INR '000) FY11P FY12P FY13P Sources Of Funds Net Profit (37,380) (45,792) (11,162) Add: Unpaid Interest 2,040 3,660 6,720 Earnings Less Interest (35,340) (42,132) (4,442) Depreciation 3,648 9,357 14,815 Equity Raised 68,000 63,000 36,000 Debt Raised 17,000 27,000 24,000 Security Deposits 1,119 3,382 7,551 Total 54,427 60,607 77,925 Application Of Funds Capital Assets - Additions 31,825 29,917 24,669 AO's capex 10,346 14,041 13,555 ZO's capex 2,675 2,541 2,414 HO's capex 7,914 1,052 1,052 First Training Institute cost 8,650 9,083 4,768 Second Training Institute cost - - - Consultancy Projects 2,240 3,200 2,880 Interest Due Paid Increase in Working Capital 1,012 4,390 15,094 Refund of security deposit 224 676 1,510 Repayment of Debt 1,200 - - Total 34,261 34,983 41,274 Opening Balance 600 20,766 46,391 Cash Surplus/(deficit) during the year 20,166 25,624 36,651 Closing Balance 20,766 46,391 83,042 Total Funding Required 85,000 90,000 60,000 Cash Requirement for 2 months of Operations Salaries 4,699 9,420 16,696 Other Operating Expenses 1,944 4,457 8,517 Marketing Expenses 295 855 2,142 Product Development Expenses 108 108 117 14,093 29,680 54,944 Free Cash Flow Net Income (37,380) (45,792) (11,162) Unpaid Interest 2,040 3,660 6,720 Depreciation 3,648 9,357 14,815 Change in WC (1,012) (4,390) (15,094) Capex (31,825) (29,917) (24,669) Total - FCF (64,529) (67,082) (29,390)
  26. 26. FY14P FY15P FY16P FY17P FY18P 79,298 200,306 358,008 565,418 808,157 79,298 200,306 358,008 565,418 808,157 20,677 27,463 30,540 29,572 27,332 0 0 0 0 0 0 0 0 0 0 14,865 21,959 28,303 33,573 36,249 114,839 249,729 416,851 628,563 871,738 33,945 33,921 28,670 23,392 8,798 17,256 17,229 17,124 16,471 3,379 3,650 3,707 3,532 3,455 594 1,106 742 67 67 67 - - - - - 10,014 10,514 5,520 - - 1,920 1,728 2,428 3,399 4,758 12,420 26,094 40,116 44,998 52,937 57,705 2,230 3,294 4,245 5,036 5,437 13,600 13,600 13,600 13,600 13,600 88,289 90,931 91,514 94,965 85,540 83,042 109,592 268,390 593,727 1,127,324 26,550 158,798 325,337 533,598 786,198 109,592 268,390 593,727 1,127,324 1,913,523 These values are manually entered to avoid circular reference. 25,480 39,107 54,364 72,462 92,477 13,232 19,604 26,972 35,151 42,887 4,066 7,251 10,878 15,140 19,874 117 188 188 188 188 85,789 132,298 184,803 245,880 310,851 79,298 200,306 358,008 565,418 808,157 0 0 0 0 0 20,677 27,463 30,540 29,572 27,332 (26,094) (40,116) (44,998) (52,937) (57,705) (33,945) (33,921) (28,670) (23,392) (8,798) 39,935 153,733 314,879 518,661 768,987
  27. 27. Balance Sheet (INR '000) FY08A FY09A FY10E FY11P Liabilities Share Capital 30,043 32,802 35,298 103,298 Accumulated Profits (35,073) (37,650) (41,610) (78,990) Reserves 4,546 5,233 5,857 5,857 Unsecured Loans 1,750 1,750 1,200 17,000 Bank Overdraft 0 389 0 0 Security Deposits 1,294 1,624 2,224 3,119 Unpaid Interest 0 0 0 2,040 Current Liabilities 5,730 5,341 3,627 9,380 Total 8,289 9,488 6,596 61,703 Assets Gross Fixed Assets 2,335 2,329 2,329 34,153 Less: Accumulated Depreciation 1,736 1,850 1,950 5,598 Net Fixed Assets 598 479 379 28,555 Current Assets 5,101 5,878 5,617 12,381 Cash balance 2,590 3,131 600 20,766 Total 8,289 9,488 6,596 61,703
  28. 28. FY12P FY13P FY14P FY15P FY16P FY17P 166,298 202,298 202,298 202,298 202,298 202,298 (124,782) (135,944) (56,646) 143,660 501,668 1,067,086 5,857 5,857 5,857 5,857 5,857 5,857 44,000 68,000 54,400 40,800 27,200 13,600 0 0 0 0 0 0 5,825 11,866 24,501 43,166 67,223 95,760 5,700 12,420 0 0 0 0 18,254 30,557 45,187 68,808 96,326 128,425 121,152 195,054 275,597 504,589 900,572 1,513,026 64,070 88,739 122,685 156,605 185,276 208,668 14,955 29,770 50,447 77,910 108,450 138,022 49,115 58,969 72,238 78,695 76,826 70,646 25,646 53,042 93,767 157,504 230,019 315,055 46,391 83,042 109,592 268,390 593,727 1,127,324 121,152 195,053 275,596 504,589 900,572 1,513,025
  29. 29. FY18P 202,298 1,875,243 5,857 0 0 126,572 0 163,033 2,373,003 217,465 165,354 52,111 407,368 1,913,523 2,373,002
  30. 30. Profit and Loss Statement (USD '000) FY09A FY10E FY11P Revenue Education Related Services (TKs) 127 225 752 Franchisee Fee (TKs) 49 50 162 E-Commerce - - - Query Response - - - TARA Akshar 127 62 781 Training Institute - - 4 Market Research - - - Advertising - - - Projects 51 27 22 Insurance Commissions - - - Total Revenue 354 365 1,721 Growth Rate % 3% 372% Expenses Salaries 273 230 1,200 Other Operating Expenses 94 192 496 Marketing expenses 4 - 75 Product Development Expenses [#] - - 28 TARA Akshar Costs 49 29 596 Insurance Commission Costs - - - Total Expenses 420 450 2,395 Growth Rate % 7% 432% EBITDA (66) (85) (674) Margin % -19% -23% -39% Other Income 18 6 - Depreciation 3 2 78 EBIT (51) (81) (752) Interest - 3 43 EBT (51) (84) (795) Tax 4 - - Net profit (55) (84) (795) Margin % -15% -23% -46% Accumulated Profit/(Loss) (801) (885) (1,681) [#] For FY10E, Product Development Expenses are included in Manpower Cost
  31. 31. FY12P FY13P FY14P FY15P FY16P FY17P 2,425 6,077 11,534 20,570 30,860 42,950 317 678 1,269 2,062 3,076 4,313 7 25 66 136 243 389 30 87 194 377 662 1,052 1,115 1,004 703 738 1,033 1,446 14 35 73 217 499 731 - 4 5 10 20 41 - 4 7 10 14 18 43 64 64 64 64 64 12 45 122 281 515 785 3,963 8,022 14,036 24,464 36,987 51,790 130% 102% 75% 74% 51% 40% 2,405 4,263 6,506 9,985 13,880 18,501 1,138 2,174 3,378 5,005 6,887 8,975 218 547 1,038 1,851 2,777 3,866 28 30 30 48 48 48 851 766 536 563 788 1,103 21 22 49 116 214 297 4,661 7,802 11,537 17,568 24,594 32,789 95% 67% 48% 52% 40% 33% (697) 221 2,499 6,896 12,393 19,001 -18% 3% 18% 28% 34% 37% - - - - - - 199 315 440 584 650 629 (896) (95) 2,059 6,312 11,743 18,372 78 143 156 122 87 52 (974) (237) 1,903 6,190 11,656 18,320 - - 216 1,929 4,039 6,289 (974) (237) 1,687 4,262 7,617 12,030 -25% -3% 12% 17% 21% 23% (2,655) (2,892) (1,205) 3,057 10,674 22,704
  32. 32. FY18P 56,381 5,574 578 1,585 2,025 955 82 22 64 1,088 68,353 32% 23,611 10,950 5,074 48 1,545 398 41,626 27% 26,727 39% - 582 26,145 17 26,128 8,933 17,195 25% 39,899
  33. 33. Cash Flow Statement (USD '000) FY11P FY12P FY13P Sources Of Funds Net Profit (795) (974) (237) Add: Unpaid Interest 43 78 143 Earnings Less Interest (752) (896) (95) Depreciation 78 199 315 Equity Raised 1,447 1,340 766 Debt Raised 362 574 511 Security Deposits 24 72 161 Total 1,158 1,290 1,658 Application Of Funds Capital Assets - Additions 677 637 525 AO's capex 220 299 288 ZO's capex 57 54 51 HO's capex 168 22 22 First Training Institute cost 184 193 101 Second Training Institute cost 0 0 0 Consultancy Projects 48 68 61 Interest Due Paid 0 0 0 Increase in Working Capital 22 93 321 Refund of security deposit 5 14 32 Repayment of Debt 26 0 0 Total 729 744 878 Opening Balance 13 442 987 Cash Surplus/(deficit) during the year 429 545 780 Closing Balance 442 987 1,767 Total Funding Required 1,809 1,915 1,277 Cash Requirement for 2 months of Operations Salaries 100 200 355 Other Operating Expenses 41 95 181 Marketing Expenses 6 18 46 Product Development Expenses 2 2 2 300 631 1,169 Free Cash Flow Net Income (795) (974) (237) Unpaid Interest 43 78 143 Depreciation 78 199 315 Change in WC (22) (93) (321) Capex (677) (637) (525) Total - FCF (1,373) (1,427) (625)
  34. 34. FY14P FY15P FY16P FY17P FY18P 1,687 4,262 7,617 12,030 17,195 0 0 0 0 0 1,687 4,262 7,617 12,030 17,195 440 584 650 629 582 0 0 0 0 0 0 0 0 0 0 316 467 602 714 771 2,443 5,313 8,869 13,374 18,548 722 722 610 498 187 367 367 364 350 72 78 79 75 74 13 24 16 1 1 1 0 0 0 0 0 213 224 117 0 0 41 37 52 72 101 264 0 0 0 0 555 854 957 1,126 1,228 47 70 90 107 116 289 289 289 289 289 1,878 1,935 1,947 2,021 1,820 1,767 2,332 5,710 12,632 23,986 565 3,379 6,922 11,353 16,728 2,332 5,710 12,632 23,986 40,713 These values are manually entered to avoid circular reference. 542 832 1,157 1,542 1,968 282 417 574 748 912 87 154 231 322 423 2 4 4 4 4 1,825 2,815 3,932 5,231 6,614 1,687 4,262 7,617 12,030 17,195 0 0 0 0 0 440 584 650 629 582 (555) (854) (957) (1,126) (1,228) (722) (722) (610) (498) (187) 850 3,271 6,700 11,035 16,361
  35. 35. Balance Sheet (USD '000) FY09A FY10E FY11P Liabilities Share Capital 698 751 2,198 Accumulated Profits (801) (885) (1,681) Reserves 111 125 125 Unsecured Loans 37 26 362 Bank Overdraft 8 0 0 Security Deposits 35 47 66 Unpaid Interest 0 0 43 Current Liabilities 114 77 200 Total 202 140 1,313 Assets Gross Fixed Assets 50 50 727 Less: Accumulated Depreciation 39 41 119 Net Fixed Assets 10 8 608 Current Assets 125 120 263 Cash balance 67 13 442 Total 202 140 1,313
  36. 36. FY12P FY13P FY14P FY15P FY16P FY17P 3,538 4,304 4,304 4,304 4,304 4,304 (2,655) (2,892) (1,205) 3,057 10,674 22,704 125 125 125 125 125 125 936 1,447 1,157 868 579 289 0 0 0 0 0 0 124 252 521 918 1,430 2,037 121 264 0 0 0 0 388 650 961 1,464 2,049 2,732 2,578 4,150 5,864 10,736 19,161 32,192 1,363 1,888 2,610 3,332 3,942 4,440 318 633 1,073 1,658 2,307 2,937 1,045 1,255 1,537 1,674 1,635 1,503 546 1,129 1,995 3,351 4,894 6,703 987 1,767 2,332 5,710 12,632 23,986 2,578 4,150 5,864 10,736 19,161 32,192
  37. 37. FY18P 4,304 39,899 125 0 0 2,693 0 3,469 50,489 4,627 3,518 1,109 8,667 40,713 50,489
  38. 38. Social Value Creation (INR '000) FY11P FY12P DIRECT INCOME GENERATION Entrepreneurs' Income* 70,988 171,025 Number of Direct Jobs Created 1,308 2,579 Direct Employees' Income 112,338 218,428 INDIRECT INCOME GENERATION Total Number of Students Trained 63,271 252,418 Total Number of Students Registering For Placements 6,327 63,104 Total Number of Students Placed 633 6,310 Cumulative Number of Students Placed 633 6,943 Students Placed Per AO 28 147 Annual Incremental Income of Placed Students 7,592 91,650 INDIRECT WEALTH CREATED Capital Mobilized By Entrepreneurs 49,985 176,033 TOTAL WEALTH GENERATED 240,903 657,136 Cumulative Wealth Generated 240,903 898,040 PRODUCTIVITY INCREASE Students Not Registered / Not Placed 62,638 246,107 Increase in Productivity Per Student (INR) 63 64 Increase in Productivity Through Training 3,915 15,843 Increase in Productivity Through Query Response - 1,122 Increase in Productivity Through E-Commerce - 7 TOTAL PRODUCTIVTY INCREASE 3,915 16,972 Cumulative Productivity Increase 3,915 20,887 TOTAL SOCIAL VALUE GENERATED 244,818 674,108 Social Value Generated Annually $5,209 $14,343 Social Value Generated Cumulative $5,209 $19,552 Net Worth $642 $1,008 Social Value Generated Per Dollar Investment $8.12 $19.40 Wealth Generated Per Dollar Investment $7.99 $18.96 Productivity Increase Per Dollar Investment $0.13 $0.44
  39. 39. FY13P FY14P FY15P FY16P FY17P 346,475 620,989 977,127 1,356,852 1,781,877 5,330 9,586 15,747 23,283 32,132 444,836 807,266 1,341,269 2,023,643 2,868,012 605,543 1,015,999 1,561,291 2,128,064 2,807,201 151,386 254,000 390,323 532,016 701,800 22,708 38,100 97,581 133,004 175,450 29,651 67,751 165,332 298,336 473,786 360 433 864 964 1,076 430,533 1,082,119 2,904,745 5,765,672 10,072,084 302,081 409,696 544,282 565,724 677,879 1,523,925 2,920,070 5,767,424 9,711,890 15,399,852 2,421,965 5,342,035 11,109,458 20,821,348 36,221,200 582,835 977,899 1,463,711 1,995,060 2,631,751 66 68 70 71 73 38,595 66,514 102,100 142,471 192,037 3,364 7,526 17,348 31,527 51,985 27 83 173 284 416 41,986 74,123 119,621 174,282 244,438 62,872 136,995 256,616 430,898 675,336 1,565,911 2,994,192 5,887,045 9,886,171 15,644,290 $33,317 $63,706 $125,256 $210,344 $332,857 $52,869 $116,575 $241,831 $452,175 $785,033 $1,536 $3,224 $7,485 $15,103 $27,133 $34.41 $36.16 $32.31 $29.94 $28.93 $33.54 $35.26 $31.58 $29.33 $28.40 $0.87 $0.90 $0.73 $0.61 $0.53
  40. 40. FY18P 2,145,251 41,633 3,829,781 3,421,894 855,473 213,868 687,654 1,182 16,080,520 613,554 22,669,106 58,890,306 3,208,025 74 238,688 76,042 558 315,288 990,624 22,984,394 $489,030 $1,274,062 $44,328 $28.74 $28.27 $0.48
  41. 41. Market Sizing Estimates provided by Govt. of India in the Community Service Centre project Total Number of CSCs projected 100,000 Nos. Total Number of CSCs - Hindi Belt 50,000 Nos. Total Number of villages covered 600,000 Nos. Total Population - Rural (*) 743,000 '000 People Coverage Per CSC 7,430 People Actual Coverage Envisaged Per CSC 910 Households Actual Coverage Envisaged Per CSC 3,640 People Within the given market, TKs will address a larger market per TK with services different from the ones provid No.of Blocks TKs TKs State Statewide Per Block Opportunity Uttar Pradesh 809 6 4,854 Madhya Pradesh 313 6 1,878 Bihar 535 6 3,210 Punjab 138 6 828 Jharkhand 119 6 714 Chattisgarh 146 6 876 Haryana 114 6 684 Uttarakhand 95 6 570 Himachal Pradesh 72 6 432 Rajasthan 237 6 1,422 2,578 15,468 (*) Source: Census of India 2001 Revised Current FY11P FY12P Total TKs 236 391 935 New TKs Opened 155 544 Penetration Rate (%) 0% 1% 2% Target Achievement (%) 2% 2% 6% Growth Rate (%) 65% 139% Current FY11P FY12P Established States 86% 80% 77% Emerging States 10% 13% 13% New States 4% 7% 10% 100% 100% 100% Current FY11P FY12P Established States 203 312 720 Emerging States 24 51 122 New States 9 27 93
  42. 42. 236 391 935
  43. 43. ent from the ones provided by CSCs. Population (*) Avg Pop Served TKs Mean TKs '000 Per TK Opportunity Target 166,197 30,000 5,540 5,197 60,348 30,000 2,012 1,945 82,999 30,000 2,767 2,988 24,359 30,000 812 820 26,946 30,000 898 806 20,834 30,000 694 785 21,145 30,000 705 694 8,489 30,000 283 426 6,078 30,000 203 317 56,507 30,000 1,884 1,653 473,902 15,797 15,632 FY13P FY14P FY15P FY16P FY17P 1,869 3,136 4,819 6,568 8,664 934 1,267 1,683 1,749 2,096 4% 6% 10% 13% 17% 12% 20% 31% 42% 55% 100% 68% 54% 36% 32% FY13P FY14P FY15P FY16P FY17P 71% 66% 62% 57% 54% 16% 18% 20% 23% 24% 13% 16% 18% 20% 22% 100% 100% 100% 100% 100% FY13P FY14P FY15P FY16P FY17P 1,327 2,070 2,988 3,744 4,679 299 564 964 1,511 2,079 243 502 867 1,314 1,906
  44. 44. 1,869 3,136 4,819 6,568 8,664
  45. 45. FY18P 10,561 1,897 21% 68% 22% FY18P 51% 26% 24% 101% FY18P 5,386 2,746 2,535
  46. 46. 10,667
  47. 47. Business Expansion FY08A FY09A FY10E FY11P FY12P FY13P FY14P FY15P FY16P FY17P FY18P Head Office 1 1 1 1 1 1 1 1 1 1 1 1 Zonal Office Zonal Office - Additions ZO Added in year 2 2 2 3 3 3 3 - Total ZOs - - - 2 4 6 9 12 15 18 18 18 Area Office Area Office - Additions AO Added in year 4 2 - 14 20 20 25 25 25 25 18 Total AOs 7 9 9 23 43 63 88 113 138 163 181 181 AOs Per ZO 12 11 11 10 9 9 9 10 Area Office - Staffing Assistant Managers per AO 1 1 1 1 2 2 2 2 2 2 2 Total Expansion Staff 7 9 9 23 81 139 207 275 343 411 465 Prospects (Per AO Expansion Staff / Year) 12 276 972 1,668 2,484 3,300 4,116 4,932 5,580 Prospect Conversion Rate 70% 70% 70% 60% 60% 50% 50% 40% Gross TK Addition 130 81 136 193 680 1,168 1,490 1,980 2,058 2,466 2,232 TK Attrition Rate 53% 123% 22% 20% 20% 20% 15% 15% 15% 15% 15% Drop-outs 69 100 30 39 136 234 224 297 309 370 335 NET New TKs Added In A Year 61 (19) 106 155 544 934 1,267 1,683 1,749 2,096 1,897 Total TKs 149 130 236 391 935 1,869 3,136 4,819 6,568 8,664 10,561 TKs per AO 21 14 26 17 22 30 36 43 48 53 58
  48. 48. TARAkendras's per year Revenue at Full Capacity (INR) No. of Computers / Hrs. Available / Students / Types of TK's TARAkendra Day Computer A Types 15 10 2 B Types 10 10 2 C Types 5 10 2
  49. 49. INR) Revenue per Revenue / Hour Revenue / Computer / Hour (per TK) Day Total Revenue / Month 63 938 9,375 234,375 52 521 5,208 130,208 47 234 2,344 58,594
  50. 50. Total Revenue / Year 2,812,500 1,562,500 703,125
  51. 51. TK's Revenue at Actual Capacity Utilization (INR) FY11P FY12P FY13P 1 2 3 Types of TK's A type 843,750 1,476,563 1,860,469 AO's Share 210,938 369,141 465,117 Contribution to Wtd. Avg. Revenue Share 55% 55% 55% B type 468,750 820,313 1,033,594 AO's Share 117,188 205,078 258,398 Contribution to Wtd. Avg. Revenue Share 31% 31% 31% C type 210,938 369,141 465,117 AO's Share 52,734 92,285 116,279 Contribution to Wtd. Avg. Revenue Share 14% 14% 14% Total (AO's share) 380,859 666,504 839,795 Capacity Utilization for Newly Established Units Type A 30% 50% 60% Type B 30% 50% 60% Type C 30% 50% 60%
  52. 52. FY14P FY15P FY16P FY17P FY18P 4 5 6 7 8 1,953,492 2,051,167 2,153,725 2,261,411 2,374,482 488,373 512,792 538,431 565,353 593,620 55% 55% 55% 55% 55% 1,085,273 1,139,537 1,196,514 1,256,340 1,319,157 271,318 284,884 299,128 314,085 329,789 31% 31% 31% 31% 31% 488,373 512,792 538,431 565,353 593,620 122,093 128,198 134,608 141,338 148,405 14% 14% 14% 14% 14% 881,785 925,874 972,168 1,020,776 1,071,815 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60%
  53. 53. Franchisee Fees (INR '000) Annual Phasing Factor For Year 1 0.5 New TKs Total TKs FY11P FY12P Weighted Average FF per New TK 18 22 Weighted Average FF per Existing TK 18 22 Year -3 88 2,570 2,570 Year -2 61 149 1,781 1,781 Year -1 (19) 130 (486) (555) Year 0 106 236 2,332 2,714 Year 1 155 391 1,422 3,400 Year 2 544 935 5,008 Year 3 934 1,869 Year 4 1,267 3,136 Year 5 1,683 4,819 Year 6 1,749 6,568 Year 7 2,096 8,664 Year 8 1,897 10,561 Yearly Contribution to HO 7,618 14,918
  54. 54. FY13P FY14P FY15P FY16P FY17P FY18P 29 32 32 33 33 33 26 29 29 29 29 29 2,570 2,570 - - - - 1,781 1,781 1,781 - - - (555) (555) (555) (555) - - 3,095 3,095 3,095 3,095 3,095 - 4,420 4,977 4,977 5,054 5,054 5,054 11,975 15,568 17,527 17,527 17,799 17,799 8,594 20,550 26,715 30,077 30,077 30,544 11,655 27,870 36,232 40,792 40,792 15,484 37,026 48,134 54,193 16,094 38,485 50,030 19,284 46,114 17,454 31,880 59,640 96,894 144,550 202,721 261,981
  55. 55. Security Deposit (INR '000) Phasing out factor 0.5 New TKs FY11P FY12P FY13P Average SD Per TK 4.6 7.2 9.6 Year 0 106 763 1,018 - Year 1 155 355 1,113 1,484 Year 2 544 1,252 3,919 Year 3 934 2,148 Year 4 1,267 Year 5 1,683 Year 6 1,749 Year 7 2,096 Year 8 1,897 Total 1,119 3,382 7,551
  56. 56. FY14P FY15P FY16P FY17P FY18P - - - - - - - - - - - - - - - 5,225 - - - - 6,725 8,967 - - - 2,914 9,121 12,162 - - 3,871 12,118 16,157 - 4,023 12,595 16,793 4,821 15,092 4,364 14,865 21,959 28,303 33,573 36,249
  57. 57. Query Response & E-Commerce (INR '000) FY11P Query Response System USAGE PER TARAKENDRA No of users per month per TK - No of users per annum per TK - Revenue per TK per annum - Charge per user (INR) 10 Revenue share of TARAhaat 30% Revenue share of franchisee 70% USAGE ACROSS TARAHAAT New TKs Cumulative Opening TKs Year 0 106 236 - Year 1 155 391 - Year 2 544 935 Year 3 934 1,869 Year 4 1,267 3,136 Year 5 1,683 4,819 Year 6 1,749 6,568 Year 7 2,096 8,664 Year 8 1,897 10,561 Total no of users per annum - Total revenue generated - Total revenue for Franchisee - Total revenue for TARAhaat - E-Commerce Total transaction value per month per TK - Total transaction value per annum per TK - Total Commission 7.5% - Franchisee commission 5.0% - TARAhaat commission 2.5% - New TKs Cumulative Opening TKs Year 0 106 236 - Year 1 155 391 - Year 2 544 935 Year 3 934 1,869 Year 4 1,267 3,136 Year 5 1,683 4,819 Year 6 1,749 6,568 Year 7 2,096 8,664
  58. 58. Year 8 1,897 10,561 Total revenue generated - Total revenue for Franchisee - Total revenue for TARAhaat -
  59. 59. FY12P FY13P FY14P FY15P FY16P 100 150 200 300 400 1,200 1,800 2,400 3,600 4,800 12 18 24 36 48 283,200 424,800 566,400 849,600 1,132,800 185,472 278,208 370,944 556,416 741,888 - 653,184 979,776 1,306,368 1,959,552 - 1,120,896 1,681,344 2,241,792 - 1,520,208 2,280,312 - 2,019,600 - 468,672 1,356,192 3,038,016 5,913,936 10,375,944 4,687 13,562 30,380 59,139 103,759 3,281 9,493 21,266 41,398 72,632 1,406 4,069 9,114 17,742 31,128 3 6 11 15 18 36 72 132 180 216 3 5 10 14 16 2 4 7 9 11 1 2 3 5 5 637 1,274 2,336 3,186 3,823 417 835 1,530 2,087 2,504 - 1,470 2,939 5,389 7,348 - 2,522 5,044 9,247 - 3,420 6,841 - 4,544 -
  60. 60. 1,055 3,579 9,328 19,126 34,308 703 2,386 6,219 12,751 22,872 352 1,193 3,109 6,375 11,436
  61. 61. FY17P FY18P 500 600 6,000 7,200 60 72 1,416,000 1,699,200 927,360 1,112,832 2,612,736 3,265,920 3,362,688 4,483,584 3,040,416 4,560,624 3,029,400 4,039,200 2,099,160 3,148,740 - 2,515,320 - 16,487,760 24,825,420 164,878 248,254 115,414 173,778 49,463 74,476 20 22 240 264 18 20 12 13 6 7 4,248 4,673 2,782 3,060 8,818 9,798 12,610 15,132 12,542 17,102 9,088 16,662 4,723 9,446 - 5,659
  62. 62. - 54,811 81,533 36,541 54,355 18,270 27,178
  63. 63. Project Implementation (INR '000) FY11P FY12P FY13P Adult Literacy Programs Per Head Gross Revenue 2.4 2.4 2.4 Number of People Covered (For Projects Currently in Pipeline) Madhya Pradesh 17,500 17,500 Chattisgrah - 7,500 7,500 Jharkhand - - 15,000 Bihar - - - New Projects New Students Total 17,500 25,000 22,500 Revenue from Pipeline 41,388 59,125 53,213 New Projects Revenue 0% 0% 0% Total Gross Revenue 41,388 59,125 53,213 Service Tax (%) 11.33% 11.33% 11.33% Total Net Revenue 36,698 52,426 47,184 Per Head Recurring Cost 1.6 1.6 1.6 Per Head Capital Cost 0.1 0.1 0.1 Specific Cost Incurred 28,000 40,000 36,000 76% 76% 76% Operating Margin for TH 8,698 12,426 11,184 24% 24% 24% Capex Undertaken (IT Systems) 2,240 3,200 2,880 6% 6% 6%
  64. 64. FY14P FY15P FY16P FY17P FY18P 2.5 2.6 2.7 2.9 3.0 7,500 7,500 100% 100% 7,500 7,500 17,734 23,645 31,527 15,000 15,000 17,734 23,645 31,527 37,249 39,111 48,552 67,973 95,162 0% 0% 40% 40% 40% 37,249 39,111 54,756 76,658 107,321 11.33% 11.33% 11.33% 11.33% 11.33% 33,028 34,680 48,552 67,973 95,162 1.7 1.8 1.9 1.9 2.0 0.1 0.1 0.1 0.1 0.1 25,200 26,460 37,044 51,862 72,606 76% 76% 76% 76% 76% 7,828 8,220 11,508 16,111 22,555 24% 24% 24% 24% 24% 1,920 1,728 2,428 3,399 4,758 6% 5% 5% 5% 5%

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