Data Recovery Services Business Plan

Executive Summary

Data recovery is an often overlooked option when data loss has occurred. TTR

Data Recovery Technologies has the expert technicians, knowledgeable customer

support staff, and the laboratory facility to solve most disaster recovery crisis

quickly, efficiently, and cost-effectively.

It is estimated that, last year, companies lost data valued at Rs. 2 billion dollars

through mechanical or electrical failure, virus activity, system malfunctions,

accidental erasure or water, fire or smoke damage. TTR Data Recovery

Technologies can recover mission critical data when all other conventional

methods and experts have failed.

TTR Data Recovery Technologies, depending on the extent of the damage, will get

the data back to life in 24 to 48 hours. For time-sensitive data loss situations, a

direct modem-to-modem transfer or high-speed T1 FTP data transfer will be

available by way of the Internet.

TTR Data Recovery Technologies has proprietary recovery technology that is not

operation system dependant. From DOS to Novell to Macintosh to UNIX, the

company has the technology and expertise to retrieve critical data. TTR Data

Recovery Technologies’ engineers have a commitment to innovation, and have

1
developed in-house software and hardware solutions to retrieve the maximum

amount of data.

Dan Whitaker, co-owner of TTR Data Recovery Technologies, has been a

professional in the field of data recovery for fifteen years. He has recovered data

for Fortune 500 companies, governments, military, and a number of the country’s

leading educational and research institutions.

1.1 Objectives

 Establish TTR Data Recovery as the national leader in critical data retrieval.

 Increase the number of Value Added Resellers (VARs) offering recovery

services through TTR Data Recovery by 20% over the next two years.

1.2 Keys to Success

The keys to success in TTR Data Recovery Technologies are:

1. Offering innovative solutions to data retrieval.

2. Reliable and timely solutions. Get the data back to the company in two days

at the latest.

3. A reliable administration that is ready to serve customers, prepare accurate

billing, follow-up on orders and other documentation, and maintain a close

watch on expenses and collection of accounts receivable.

2
Company Summary

TTR Data Recovery Technologies is a new company offering recovery solutions for

data loss on computers, servers, and any operating media. The company will

focus on three target customers:

 Value added resellers (VAR);

 Company IT units;

 Public institution IT units.

Dan Whitaker is creating TTR Data Recovery Technologies with fifteen years of

experience in the field. His insight and management skill will be instrumental in

establishing the company as an industry giant.

3
TTR Data Recovery Technologies has proprietary recovery technology that is not

operation system dependant. From DOS to Novell to Macintosh to UNIX, the

company has the technology and expertise to retrieve critical data.

2.1 Start-up Summary

The start-up cost of TTR Data Recovery Technologies will consist primarily of

computer and data restoration equipment. Dan Whitaker will invest Rs. 100,000.

A silent partner will invest Rs. 150,000. Dan will also secure a Rs. 100,000 loan.

The Rs. 80,000 in equipment listed in the start-up table is for clean room

equipment (air filtering system equipment), data retrieval equipment for hard

drives to store recovered data and hardware fixtures to examine and clean hard

drives.

4
Start-up

Requirements

Start-up Expenses

Legal Rs. 1,000

Stationery etc. Rs. 800

Brochures Rs. 2,000

Insurance Rs. 1,000

Rent Rs. 3,000

Expensed Equipment Rs. 80,000

Total Start-up Expenses Rs. 87,800

Start-up Assets

5
Cash Required Rs. 162,200

Other Current Assets Rs. 0

Long-term Assets Rs. 100,000

Total Assets Rs. 262,200

Total Requirements Rs. 350,000

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Start-up Funding

Start-up Expenses to Fund Rs. 87,800

Start-up Assets to Fund Rs. 262,200

Total Funding Required Rs. 350,000

6
Assets

Non-cash Assets from Start-up Rs. 100,000

Cash Requirements from Start-up Rs. 162,200

Additional Cash Raised Rs. 0

Cash Balance on Starting Date Rs. 162,200

Total Assets Rs. 262,200

Liabilities and Capital

Liabilities

Current Borrowing Rs. 0

Long-term Liabilities Rs. 100,000

Accounts Payable (Outstanding Bills) Rs. 0

Other Current Liabilities (interest-free) Rs. 0

Total Liabilities Rs. 100,000

Capital

7
Planned Investment

Dan Whitaker Rs. 100,000

Silent Partner Rs. 150,000

Additional Investment Requirement Rs. 0

Total Planned Investment Rs. 250,000

Loss at Start-up (Start-up Expenses) (Rs. 87,800)

Total Capital Rs. 162,200

Total Capital and Liabilities Rs. 262,200

Total Funding Rs. 350,000

2.2 Company Ownership

Dan Whitaker, co-owner of TTR Data Recovery Technologies, has been a

professional in the field of data recovery for latest fifteen years. The company will

be set up as a Limited Partnership. Dan Whitaker will share ownership with a

silent partner.

Services

8
TTR Data Technologies recovers a client’s data from tape backups, hard drives,

optical media, removable media and anything in between, getting data when all

others fail. Remote file structure repair services are also offered.

Depending on the extent of the damage, TTR Data Recovery Technologies will get

the data back to life in 24 to 48 hours. For time-sensitive data loss situations, a

direct modem-to-modem transfer or high-speed T1 FTP data transfer is available

by way of the Internet.

TTR Data Recovery Technologies has proprietary recovery technology that is not

operation system dependant. From DOS to Novell to Macintosh to UNIX, the

company has the technology and expertise to retrieve critical data.

In-house software and hardware solutions have been developed by TTR Data

Recovery Technologies’ engineers to retrieve the maximum amount of data from

damaged data storage mediums.

Market Analysis Summary

9
Data recovery is a Rs. 150 million specialty industry that is growing by 10% each

year. As more and more companies realize that there are solutions to data

recovery that can save millions of dollars, the industry will grow even faster.

An important element in the growth of the industry is the how often most

companies need recovery services. Recent surveys indicate that recovery services

are required, on average, two to five times a year. Consequently, most

companies don’t invest in personnel with data recovery expertise.

In a number of respects, recovery services are important to a company only after

data has been destroyed. This offers an opportunity and a disadvantage to firms

like TTR Data Recovery Technologies.

When companies contact TTR, they want the problem solved yesterday. When

TTR contacts the company concerning future failures, companies are hesitant to

invest in preventative actions. This will change in the future. The marketing goal

of TTR Data Recovery Technologies is to successfully sell preventative recovery

programs to companies.

10
4.1 Market Segmentation

ERR Data Recovery Technologies will focus on three customer groups:

Value Added Resellers (VAR): This group is the critical supplier of products and

services to almost every industry. Data recovery services can quickly become a

strong profit center for VARs serving their markets. The VAR would sell the service

to the customer and TTR Data Recovery Technologies would perform the work.

Company IT Units: These units manage the company servers and networking

systems. Clearly, when data is lost, it is their job to retrieve it quickly. TTR Data

Recovery Technologies would be an invaluable resource when recovering data.

Public Institution IT Units: These units manage the research and educational

institutions’ servers and networking systems. Years of research or institution data

can be lost. Typically, these institution don’t have the expertise in-house to solve

these problems.

Data recovery services business plan, market analysis summary chart image

Market Analysis

Potential Customers Growth CAGR

11
Value Added Resellers 20% 20,000 24,000 28,800 34,560

41,472 20.00%

Company IT Units 10% 100,000 110,000 121,000 133,100

146,410 10.00%

Public IT Units 10% 30,000 33,000 36,300 39,930

43,923 10.00%

Total 11.50% 150,000 167,000 186,100 207,590 231,805

11.50%

Strategy and Implementation Summary

TTR Data Recovery Technologies will aggressively pursue developing a VARs

program to open the market for data recovery. In addition, the company will

cultivate relationships with company and public IT units by providing a free

diagnostic software program that will assist in assessing damage to a media.

5.1 Competitive Edge

Dan Whitaker is the competitive edge of TTR Data Recovery Technologies. Dan

has worked for both Rogue Computer Services and CBL Technologies over the

past fifteen years. In his last position with CBL Technologies, Dan managed the

growth of the Data Recovery Unit. He generated sales in excess of Rs. 3 million

12
annually. His strength is his customer relation skills and he has been successful in

expanding the range of services offered by the company.

The staff of TTR Data Recovery Technologies are impressive also:

 Al Siano: Seven years of experience in data recovery. Area of expertise:

mechanical failure, head crash, media damage, controller malfunction,

actuator failure, and damaged motor.

 Linda Stevens: Eight years of experience in data recovery. Area of

expertise: user error, accidental deletions, reformatting, repartition, virus

infection, directory corruption, and lost/forgotten password.

 Roger Williams: Five years of experience in data recovery. Area of

expertise: natural disaster, fire, flood, hurricane/tornado, earthquake, and

power spike.

TTR Data Recovery Technologies’ facility has a Class 100 Cleanroom in order to

make delicate repairs, with no margin of error for the smallest of particles. This

pristine facility maintains fewer than 100 circulating air contaminant particles per

million (10,000X purer than the everyday environment), ensuring a regulated

atmosphere for performing sensitive open drive surgery. In addition, the staff

wears special suits, hair caps, face masks, boots and latex gloves.

13
To develop good business strategies, perform a SWOT analysis of your business.

It's easy with our free guide and template. Learn how to perform a SWOT analysis

5.2 Sales Strategy

TTR Data Recovery Technologies will have three distinct sales approaches:

 For VARs: We will offer VARs a flat service fee. Each VAR can then set their

own price for the service to their customer.

 IT Units: We will offer a free diagnostic software program that will assist in

assessing damage to a media. We will also offer a 15% discount for

recovery services.

5.2.1 Sales Forecast

For the first month there will be no sales, as the company will be establishing its

operations. We anticipate that sales will grow quickly during the second and third

month of operation.

The following is the sales forecast for three years.

14
Sales Forecast

Sales

VARs Rs. 220,000 Rs. 260,000 Rs. 300,000

IT Units Rs. 148,000 Rs. 188,000 Rs. 228,000

Total Sales Rs. 368,000 Rs. 448,000 Rs. 528,000

15
Direct Cost of Sales Year 1 Year 2 Year 3

VARs Rs. 0 Rs. 0 Rs. 0

IT Units Rs. 0 Rs. 0 Rs. 0

Subtotal Direct Cost of Sales Rs. 0 Rs. 0 Rs. 0

Management Summary

Dan Whitaker will manage the day to day operations of TTR Data Recovery

Technologies, as well as serve a a member of the data recovery team. In addition

to the recovery team, John Marks has been added to the staff as sales manager.

John has been sales manager at Rogue Computer Services for seven years. During

that times sales for the company has grown between 9% and 12% each year. Last

year, Rogue Computer Services exceeded Rs. 10 million in sales of product and

services.

TTR Data Recovery Technologies will also have one customer service/clerical staff

member.

6.1 Personnel Plan

The personnel of TTR Data Recovery Technologies are as follows:

16
  Manager;

 Customer service/clerical (1);

 Data recovery staff (3);

 Sales manager.

Personnel Plan

Manager Rs. 36,000 Rs. 40,000 Rs. 44,000

Customer Service/Clerical (1) Rs. 24,000 Rs. 26,000 Rs. 28,000

Data Recovery Staff (3) Rs. 120,000 Rs. 130,000 Rs. 140,000

Sales Manager Rs. 36,000 Rs. 38,000 Rs. 40,000

Other Rs. 0 Rs. 0 Rs. 0

Total People 6 6 6

Total Payroll Rs. 216,000 Rs. 234,000 Rs. 252,000

Financial Plan

The following is the financial plan for TTR Data Recovery Technologies.

General Assumptions

17
Plan Month 1 2 3

Current Interest Rate 10.00% 10.00% 10.00%

Long-term Interest Rate 10.00% 10.00% 10.00%

Tax Rate 30.00% 30.00% 30.00%

Other 0 0 0

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7.1 Break-even Analysis

The monthly break-even point is shown below.

18
Break-even Analysis

Monthly Revenue Break-even Rs. 26,440

Assumptions:

Average Percent Variable Cost 0%

Estimated Monthly Fixed Cost Rs. 26,440

19
7.2 Projected Profit and Loss

The following table and chart will highlight projected profit and loss for the next

three years.

20
Pro Forma Profit and Loss

21
Sales Rs. 368,000 Rs. 448,000 Rs. 528,000

Direct Cost of Sales Rs. 0 Rs. 0 Rs. 0

Other Production Expenses Rs. 0 Rs. 0 Rs. 0

Total Cost of Sales Rs. 0 Rs. 0 Rs. 0

Gross Margin Rs. 368,000 Rs. 448,000 Rs. 528,000

Gross Margin % 100.00% 100.00% 100.00%

Expenses

Payroll Rs. 216,000 Rs. 234,000 Rs. 252,000

Sales and Marketing and Other Expenses Rs. 18,000 Rs. 36,000 Rs. 46,000

Depreciation Rs. 2,880 Rs. 2,880 Rs. 2,880

Leased Equipment Rs. 0 Rs. 0 Rs. 0

Utilities Rs. 6,000 Rs. 6,000 Rs. 6,000

Insurance Rs. 6,000 Rs. 6,000 Rs. 6,000

Rent Rs. 36,000 Rs. 36,000 Rs. 36,000

Payroll Taxes Rs. 32,400 Rs. 35,100 Rs. 37,800

22
Other Rs. 0 Rs. 0 Rs. 0

Total Operating Expenses Rs. 317,280 Rs. 355,980 Rs. 386,680

Profit Before Interest and Taxes Rs. 50,720 Rs. 92,020 Rs. 141,320

EBITDA Rs. 53,600 Rs. 94,900 Rs. 144,200

Interest Expense Rs. 9,233 Rs. 7,876 Rs. 6,460

Taxes Incurred Rs. 12,446 Rs. 25,243 Rs. 40,458

Net Profit Rs. 29,041 Rs. 58,901 Rs. 94,402

Net Profit/Sales 7.89% 13.15% 17.88%

7.3 Projected Cash Flow

The following table and chart highlight the projected cash flow for three years.

23
Pro Forma Cash Flow

Cash Received

Cash from Operations

Cash Sales Rs. 92,000 Rs. 112,000 Rs. 132,000

Cash from Receivables Rs. 219,200 Rs. 323,652 Rs. 383,652

Subtotal Cash from Operations Rs. 311,200 Rs. 435,652 Rs. 515,652

Additional Cash Received

Sales Tax, VAT, HST/GST Received Rs. 0 Rs. 0 Rs. 0

New Current Borrowing Rs. 0 Rs. 0 Rs. 0

New Other Liabilities (interest-free) Rs. 0 Rs. 0 Rs. 0

New Long-term Liabilities Rs. 0 Rs. 0 Rs. 0

Sales of Other Current Assets Rs. 0 Rs. 0 Rs. 0

Sales of Long-term Assets Rs. 0 Rs. 0 Rs. 0

New Investment Received Rs. 0 Rs. 0 Rs. 0

Subtotal Cash Received Rs. 311,200 Rs. 435,652 Rs. 515,652

24
Expenditures Year 1 Year 2 Year 3

Expenditures from Operations

Cash Spending Rs. 216,000 Rs. 234,000 Rs. 252,000

Bill Payments Rs. 108,026 Rs. 151,761 Rs. 176,540

Subtotal Spent on Operations Rs. 324,026 Rs. 385,761 Rs. 428,540

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out Rs. 0 Rs. 0 Rs. 0

Principal Repayment of Current Rs. 0 Rs. 0 Rs. 0

Borrowing

Other Liabilities Principal Repayment Rs. 0 Rs. 0 Rs. 0

Long-term Liabilities Principal Repayment Rs. 14,160 Rs. 14,160 Rs. 14,160

Purchase Other Current Assets Rs. 0 Rs. 0 Rs. 0

Purchase Long-term Assets Rs. 0 Rs. 0 Rs. 0

Dividends Rs. 0 Rs. 0 Rs. 0

25
Subtotal Cash Spent Rs. 338,186 Rs. 399,921 Rs. 442,700

Net Cash Flow (Rs. 26,986) Rs. 35,731 Rs. 72,952

Cash Balance Rs. 135,214 Rs. 170,945 Rs. 243,897

7.4 Projected Balance Sheet

The following table highlights the projected balance sheet for three years.

Pro Forma Balance Sheet

Assets

Current Assets

Cash Rs. 135,214 Rs. 170,945 Rs. 243,897

Accounts Receivable Rs. 56,800 Rs. 69,148 Rs. 81,496

Other Current Assets Rs. 0 Rs. 0 Rs. 0

Total Current Assets Rs. 192,014 Rs. 240,093 Rs. 325,393

Long-term Assets

Long-term Assets Rs. 100,000 Rs. 100,000 Rs. 100,000

Accumulated Depreciation Rs. 2,880 Rs. 5,760 Rs. 8,640

26
Total Long-term Assets Rs. 97,120 Rs. 94,240 Rs. 91,360

Total Assets Rs. 289,134 Rs. 334,333 Rs. 416,753

Liabilities and Capital Year 1 Year 2 Year 3

Current Liabilities

Accounts Payable Rs. 12,053 Rs. 12,511 Rs. 14,689

Current Borrowing Rs. 0 Rs. 0 Rs. 0

Other Current Liabilities Rs. 0 Rs. 0 Rs. 0

Subtotal Current Liabilities Rs. 12,053 Rs. 12,511 Rs. 14,689

Long-term Liabilities Rs. 85,840 Rs. 71,680 Rs. 57,520

Total Liabilities Rs. 97,893 Rs. 84,191 Rs. 72,209

Paid-in Capital Rs. 250,000 Rs. 250,000 Rs. 250,000

Retained Earnings (Rs. 87,800) (Rs. 58,759) Rs. 142

Earnings Rs. 29,041 Rs. 58,901 Rs. 94,402

Total Capital Rs. 191,241 Rs. 250,142 Rs. 344,544

Total Liabilities and Capital Rs. 289,134 Rs. 334,333 Rs. 416,753

27
Net Worth Rs. 191,241 Rs. 250,142 Rs. 344,544

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7.5 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios

based on the Standard Industrial Classification (SIC) code 7379, Computer Related

Services, are shown for comparison.

Ratio Analysis

Sales Growth 0.00% 21.74% 17.86% 7.20%

Percent of Total Assets

Accounts Receivable 19.64% 20.68% 19.55% 21.70%

Other Current Assets 0.00% 0.00% 0.00% 46.70%

Total Current Assets 66.41% 71.81% 78.08% 71.90%

Long-term Assets 33.59% 28.19% 21.92% 28.10%

28
Total Assets 100.00% 100.00% 100.00% 100.00%

Current Liabilities 4.17% 3.74% 3.52% 51.40%

Long-term Liabilities 29.69% 21.44% 13.80% 19.10%

Total Liabilities 33.86% 25.18% 17.33% 70.50%

Net Worth 66.14% 74.82% 82.67% 29.50%

Percent of Sales

Sales 100.00% 100.00% 100.00% 100.00%

Gross Margin 100.00% 100.00% 100.00% 0.00%

Selling, General & Administrative 92.11% 86.85% 82.12% 80.70%

Expenses

Advertising Expenses 3.26% 6.70% 7.58% 1.20%

Profit Before Interest and Taxes 13.78% 20.54% 26.77% 1.70%

Main Ratios

Current 15.93 19.19 22.15 1.27

Quick 15.93 19.19 22.15 1.01

29
Total Debt to Total Assets 33.86% 25.18% 17.33% 70.50%

Pre-tax Return on Net Worth 21.69% 33.64% 39.14% 3.50%

Pre-tax Return on Assets 14.35% 25.17% 32.36% 11.80%

Additional Ratios Year 1 Year 2 Year 3

Net Profit Margin 7.89% 13.15% 17.88% n.a

Return on Equity 15.19% 23.55% 27.40% n.a

Activity Ratios

Accounts Receivable Turnover 4.86 4.86 4.86 n.a

Collection Days 57 68 69 n.a

Accounts Payable Turnover 9.96 12.17 12.17 n.a

Payment Days 27 29 28 n.a

Total Asset Turnover 1.27 1.34 1.27 n.a

Debt Ratios

Debt to Net Worth 0.51 0.34 0.21 n.a

Current Liab. to Liab. 0.12 0.15 0.20 n.a

30
Liquidity Ratios

Net Working Capital Rs. Rs. Rs. n.a

179,961 227,582 310,704

Interest Coverage 5.49 11.68 21.88 n.a

Additional Ratios

Assets to Sales 0.79 0.75 0.79 n.a

Current Debt/Total Assets 4% 4% 4% n.a

Acid Test 11.22 13.66 16.60 n.a

Sales/Net Worth 1.92 1.79 1.53 n.a

Dividend Payout 0.00 0.00 0.00 n.a

Appendix

Sales Forecast

Sales

VARs 0% Rs. 0 Rs. 10,000 Rs. 10,000 Rs. 12,000 Rs. 16,000 Rs. 18,000

Rs. 25,000 Rs. 29,000 Rs. 33,000 Rs. 25,000 Rs. 20,000 Rs. 22,000

31
IT Units 0% Rs. 0 Rs. 5,000 Rs. 4,000 Rs. 6,000 Rs. 8,000 Rs.

11,000 Rs. 16,000 Rs. 22,000 Rs. 25,000 Rs. 16,000 Rs. 18,000 Rs.

17,000

Total Sales Rs. 0 Rs. 15,000 Rs. 14,000 Rs. 18,000 Rs. 24,000 Rs.

29,000 Rs. 41,000 Rs. 51,000 Rs. 58,000 Rs. 41,000 Rs. 38,000 Rs.

39,000

Direct Cost of Sales Month 1 Month 2 Month 3 Month 4

Month 5 Month 6 Month 7 Month 8 Month 9 Month 10

Month 11 Month 12

VARs Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0

Rs. 0

IT Units Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0

Rs. 0 Rs. 0

Subtotal Direct Cost of Sales Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0

Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0

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Personnel Plan

32
Manager 0% Rs. 3,000 Rs. 3,000 Rs. 3,000 Rs. 3,000 Rs. 3,000

Rs. 3,000 Rs. 3,000 Rs. 3,000 Rs. 3,000 Rs. 3,000 Rs. 3,000

Rs. 3,000

Customer Service/Clerical (1) 0% Rs. 2,000 Rs. 2,000 Rs. 2,000 Rs.

2,000 Rs. 2,000 Rs. 2,000 Rs. 2,000 Rs. 2,000 Rs. 2,000 Rs. 2,000

Rs. 2,000 Rs. 2,000

Data Recovery Staff (3) 0% Rs. 10,000 Rs. 10,000 Rs. 10,000 Rs. 10,000

Rs. 10,000 Rs. 10,000 Rs. 10,000 Rs. 10,000 Rs. 10,000 Rs. 10,000

Rs. 10,000 Rs. 10,000

Sales Manager 0% Rs. 3,000 Rs. 3,000 Rs. 3,000 Rs. 3,000 Rs.

3,000 Rs. 3,000 Rs. 3,000 Rs. 3,000 Rs. 3,000 Rs. 3,000 Rs. 3,000

Rs. 3,000

Other 0% Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0

Rs. 0

Total People 6 6 6 6 6 6 6 6 6 6

6 6

Total Payroll Rs. 18,000 Rs. 18,000 Rs. 18,000 Rs. 18,000 Rs. 18,000

Rs. 18,000 Rs. 18,000 Rs. 18,000 Rs. 18,000 Rs. 18,000 Rs. 18,000

Rs. 18,000

33
General Assumptions

Plan Month 1 2 3 4 5 6 7 8 9 10

11 12

Current Interest Rate 10.00% 10.00% 10.00% 10.00%

10.00% 10.00% 10.00% 10.00% 10.00% 10.00%

10.00% 10.00%

Long-term Interest Rate 10.00% 10.00% 10.00% 10.00%

10.00% 10.00% 10.00% 10.00% 10.00% 10.00%

10.00% 10.00%

Tax Rate 30.00% 30.00% 30.00% 30.00% 30.00%

30.00% 30.00% 30.00% 30.00% 30.00% 30.00%

30.00%

Other 0 0 0 0 0 0 0 0 0 0 0

Pro Forma Profit and Loss

Sales Rs. 0 Rs. 15,000 Rs. 14,000 Rs. 18,000 Rs. 24,000 Rs. 29,000

Rs. 41,000 Rs. 51,000 Rs. 58,000 Rs. 41,000 Rs. 38,000 Rs. 39,000

34
Direct Cost of Sales Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0

Rs. 0 Rs. 0 Rs. 0 Rs. 0

Other Production Expenses Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0

Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0

Total Cost of Sales Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0

Rs. 0 Rs. 0 Rs. 0

Gross Margin Rs. 0 Rs. 15,000 Rs. 14,000 Rs. 18,000 Rs. 24,000

Rs. 29,000 Rs. 41,000 Rs. 51,000 Rs. 58,000 Rs. 41,000 Rs. 38,000

Rs. 39,000

Gross Margin % 0.00%100.00% 100.00% 100.00% 100.00%

100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

100.00%

Expenses

Payroll Rs. 18,000 Rs. 18,000 Rs. 18,000 Rs. 18,000 Rs. 18,000

Rs. 18,000 Rs. 18,000 Rs. 18,000 Rs. 18,000 Rs. 18,000 Rs. 18,000

Rs. 18,000

Sales and Marketing and Other Expenses Rs. 1,500 Rs. 1,500 Rs.

1,500 Rs. 1,500 Rs. 1,500 Rs. 1,500 Rs. 1,500 Rs. 1,500 Rs. 1,500

Rs. 1,500 Rs. 1,500 Rs. 1,500

240 Rs. 240 Rs. 240 Rs. 240 Rs. 240 Rs. 240 Rs. 240

Rs. 240

Leased Equipment Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0

Rs. 0 Rs. 0 Rs. 0

Utilities Rs. 500 Rs. 500 Rs. 500 Rs. 500 Rs. 500

Rs. 500 Rs. 500 Rs. 500 Rs. 500 Rs. 500 Rs. 500

Rs. 500

Insurance Rs. 500 Rs. 500 Rs. 500 Rs. 500 Rs. 500

Rs. 500 Rs. 500 Rs. 500 Rs. 500 Rs. 500 Rs. 500

Rs. 500

Rent Rs. 3,000 Rs. 3,000 Rs. 3,000 Rs. 3,000 Rs. 3,000 Rs.

3,000 Rs. 3,000 Rs. 3,000 Rs. 3,000 Rs. 3,000 Rs. 3,000 Rs. 3,000

Payroll Taxes 15% Rs. 2,700 Rs. 2,700 Rs. 2,700 Rs. 2,700 Rs.

2,700 Rs. 2,700 Rs. 2,700 Rs. 2,700 Rs. 2,700 Rs. 2,700 Rs. 2,700

Rs. 2,700

Other Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0

Rs. 0

36
Total Operating Expenses Rs. 26,440 Rs. 26,440 Rs. 26,440 Rs.

26,440 Rs. 26,440 Rs. 26,440 Rs. 26,440 Rs. 26,440 Rs. 26,440 Rs.

26,440 Rs. 26,440 Rs. 26,440

Profit Before Interest and Taxes (Rs. 26,440) (Rs. 11,440) (Rs. 12,440)

(Rs. 8,440) (Rs. 2,440) Rs. 2,560 Rs. 14,560 Rs. 24,560 Rs. 31,560

Rs. 14,560 Rs. 11,560 Rs. 12,560

EBITDA (Rs. 26,200) (Rs. 11,200) (Rs. 12,200) (Rs. 8,200) (Rs. 2,200)

Rs. 2,800 Rs. 14,800 Rs. 24,800 Rs. 31,800 Rs. 14,800 Rs. 11,800

Rs. 12,800

Interest Expense Rs. 824 Rs. 814 Rs. 804 Rs. 794 Rs.

784 Rs. 774 Rs. 765 Rs. 755 Rs. 745 Rs. 735 Rs. 725

Rs. 715

Taxes Incurred (Rs. 8,179) (Rs. 3,676) (Rs. 3,973) (Rs. 2,770) (Rs.

967) Rs. 536 Rs. 4,139 Rs. 7,142 Rs. 9,245 Rs. 4,148 Rs. 3,250

Rs. 3,553

Net Profit (Rs. 19,084) (Rs. 8,578) (Rs. 9,271) (Rs. 6,464) (Rs. 2,257)

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