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Business Plan

Submitted toInstitute of Management Sciences

Lucknow University

Submitted By Amar Kumar GuptaMBA (Retail Management)

Institute Of Management Sciences Lucknow University

Lucknow

Deity Retail Store Owner- Amar Kumar Gupta 1


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Deity Retail StoreA Convenience Store

Owner- Amar Kumar Gupta



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Table of Content

Deity Retail Store 2

Executive Summary 5

1.1 Objectives 9

1.2 Mission 10

1.3 Keys to Success 12

2.0 Company Summary 14

2.1 Hours of Operation15

2.2 Company Ownership 15

2.3 Start-up Summary 15

2.4 PRODUCTS 16

2.5 SERVICES 19

MARKET ANALYSIS SUMMARY 20

3.1 Market Segmentation 22

3.2 Target Market Segment Strategy 24

3.3 Technology: Electronic Marketing25

3.4 Promotions 26

Industry Analysis 27

4.1Industry Trends 29

4.2 Competition 30



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4.3 Buying Patterns 31

Strategy and Implementation Summary 31

5.1 Distribution Strategy: 33

5.2 Services & Support Philosophy 33

5.3 Competitive Edge 34

5.4 Marketing Strategy 34

5.5 Sales Strategy 36

5.6 Sales Forecast 37

5.7 Milestones 38

Management Summary 39

6.1 Personnel Plan 40

Financial Plan 40

7.1 Important Assumptions 41

7.2 Break-even Analysis 41

7.3 Projected Cash Flow 42

7.4 Projected Profit and Loss 44

7.5 Projected Balance Sheet 47

7.6 Business Ratios 48

Appendix 50



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Executive Summary

Deity Retail is a business specializing in generalmerchandise. It will be located in the brand-newTown Gomti Nagar, which is in a high traffic area.The space will be near to NeelKanth Sweets. Thespace is easily accessible and provides ample

parking for its customers. The space is visible fromall points within the center itself as well as thetraffic from Vivekkhand Road and JaipuriaManagement Institute. The business is a retailestablishment selling current good variety merchandise at retail. The majority of themerchandise is priced within a reasonable price

range, thus attracting the widest possible range of customers.

Deity Retail has access to the purchasing power of buying centers offering merchandise at prices 5to 10 percent below wholesale with immediatedelivery and low to no minimum orders. Thesecenters are well stocked and prepared to meet theincreased demands of the peak selling seasons suchas Seasonal Changes, Back-to-School, Holiday Needs, etc. Since delivery from these centers to thebusiness takes only five to ten days, Deity Retail isassured of a well-stocked store regardless of

seasonal demands. Also, since these buying centers



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are able to deliver in such a short time, there is not a necessity to carry an extremely large inventory inadvance of peak selling periods.

Deity Retail attracts its customers through theuse of specialized advertisements, handbills, newsreleases in newspapers, as well as the traffic flow of which the area itself generates.

A Grand Opening will commence after Deity

Retail has been in business for six to eight weeks.This event will be held on a Saturday. Deity Retail'sowner Amar Kumar Gupta will coordinate the Grand Opening. It will include a local political official,ribbon-cutting ceremonies, pictures, speaking, etc.Professional news releases will be submitted to thelocal and market area newspapers, and possibly radio and television.

The storeowner of Deity Retail has access toover 250 of the best buying centers in the city. Thebuying centers provide inventory and fixtures. Amar Kumar Gupta will take a buying trip for initial

inventory with her close friend and professionalbuyer Ashok Kumar Gupta. All staff will be provided with in-store training.

According to the information contained in thisbusiness plan, we feel that Deity Retail is a sound business investment for the financial institution to

consider for a loan in the amount of Rs 800000.



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Deity Retail will sell the same products asother convenience stores in the same packagingsizes, quality, and quantity as other stores. This

includes soft drinks, fruit juices, sport drinks, hot and cold snacks, a number of grocery items such as,

paper products, toothpaste, all general merchandiseetc.

All products will be locally or nationally branded such as Frito-Lay, Coca-Cola, Hindustan Uniliver,Dabar, Brittania, etc. In addition each computerized transaction machine can dispense cash, stamps,Lotto and phone cards and other coupons and willhave the ability to create personal accounts that can display preferred items, retain shopping listsand other services. An automated, interactive

"customer service rep" will be able to answer questions and pass on comments to the company'smanagement.

In addition, the company is looking into ways toset up a separate Internet area for remote access tothe Web and email for its customers.

The Market

Our market is booming. Convenience storeindustry sales rose 8.6% last year. Overall retailsales grew by only 6.3%, and grocery sales followed with 2.4% growth, proving once again that the



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convenience store industry has become a powerfulforce in retailing.

Convenience stores serve the entire purchasing population of its geographical area but focuses oncustomers who need to purchase items outside of normal working hours such as swing shift employeesand quick shoppers looking for snacks and related items. Therefore we have segmented our market into night shoppers, quick shoppers, and others.Growth rates for these three segments match the

population growth for the surrounding area.

Our main competitor is Spencer which holdsapproximately 30% of the market. Other competitors include small retailers and any of the85 grocery establishments around area.

Financial Considerations

Our start-up requirements come to Rs.1332,000, which are largely single time feesassociated with opening the store. These costs are

financed by both bank loan and the investment of Amar Kumar Gupta. It should be noted that weexpect to be operating at a loss for the first threemonths before advertising begins to take effect and draw in customers.

Deity Retail will be receiving periodic influxes of

cash in order to cover operating expenses during



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the first two years as it strives toward sustainable profitability. Almost all of this funding has beenarranged through bank loan and owners capital

already. We do not anticipate any cash flow problems during the next three years.

1.1 Objectives

As a leading wholesale distributor, our commitment is to provide quality products and

services in a cost-effective manner, enabling Deity Retail to excel in serving their customers.

These are the goals for the next three years for Deity Retail:

Achieve profitability by July Year 1; Earn approximately Rs. 200,000 in sales by

Year 1; Start up second store by Year 2. Explore potential growth in downtown market

and evolve new sources of business. To provide a wide range of merchandise

at reasonable prices. To achieve a healthy profit margin within the

first year. To achieve a modest net profit by month six. To be an active and vocal member of the

community, and provide continual re-investment through participation in community

activities and financial contributions.



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A clean environment in which to shop A safe place to shop Value Great, friendly service Our shop will be good neighbors and will be

involved in the community Store will have minimum weekly retail sales of

Rs. 300,000 which is equivalent toapproximately Rs. 75,000 of purchases weekly

at the wholesale level Create benchmarks for measuring success

1.2 Mission

Deity Retail's mission is to create a Retail storethat is reliable and convenient. A store that offers

great service and selection of products in acustomer friendly environment.

Deity Retail will cater to residents, businesses,contractors. Our customers will become loyalbecause of the great advice, prompt service, good staff attitudes, the overall quality of the shopping

experience, and the fact that we consistently havesolutions for their needs.

The Deity Retail Store provides a variety of interesting merchandise options at fair prices.Dedicated to customer service the Deity Retail Storewill give its patrons the kind of service that isrespectful and prompt. Employees of the Deity



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Retail Store will also be treated in a professionalmanner with a rewarding work environment and fair compensation.

Deity Retail's primary objective is to create anew and revolutionary distribution outlet that willsignificantly reduce prices for its customers and

provide greater services with an equal level of quality. The company seeks to be first to market with this daring new idea so as to capture market share and create greater than average profits.

Our mission is to provide the Gomtinagar areawith a wide variety of quality general merchandisein a clean and friendly atmosphere.

The Deity Retail Store will provide residents and

guests a quality and dependable retail operationfrom which they may purchase food items, grocerieson a year-round basis. The Deity Retail Store shalltry to provide its quality products in acomprehensive and cost competitive manner, while

providing our customers the finest service available.

Our most fundamental philosophy is theconcern for people. This strong belief in people isthe determining factor that motivates our operations in developing our relationship with our employees and customers.

We believe that our responsibility for customer satisfaction is not focused solely on the sale of a



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product, but rather is the total relationship acustomer experiences when interacting with our organization. We believe in honesty and truth in all

transactions and in providing products of thehighest quality and at fair prices. We should doeverything possible to provide outstanding servicein marketing the products we sell.

Our philosophy of concern for people gives our Deity Retail Store the drive to be a good corporatecitizen. We believe we have a responsibility to be agood neighbor in maintaining our property in first-class condition and by making the appearance of our plant, facilities, equipment, and grounds asattractive as possible, making them an asset to thecommunities that support our company.

We at Deity Retail Store of Gomtinagar, arecommitted to bringing you the best all-around shopping experience. Our nice pledge campaignincludes an intense training session for all of our employees, and a firm understanding and commitment to deliver these pledge points at the

Deity Retail Store.

1.3 Keys to Success

In order to survive and expand, Deity Retail must keep the following issues in mind:



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We must attain a high level of visibility throughthe media, billboards, and other advertising.

We must establish rigid procedures for cost

control and incentives for maintaining tight control.

We must expend a significant amount on R&Din order to constantly be able to offer better and greater products and services.

A service designed specifically for the area

Total quality food and customer service Controlled overhead and operational costs Regular and ongoing customer feedback Inventory and DNR technology/software

capacity Dedicated management and trained support

staff

To succeed in this business we must:

Sell a broad range of products. Provide for the satisfaction of 100% of our

customers. Be an active member of the community. Encourage customer input.

Service and Convenience are the keys to successin this business. They are also the strengths of independent retail stores. Our personnel haveexperience in high-end client hospitality. Thisexperience will be invaluable in dealing withcustomers and clients. We will also keep meticulous



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records on what customers are looking for that wedo not currently have in stock. As discussed earlier,a delivery program will be developed to make it

easy for business customers to receive productswithout leaving the office.

Prepaid account facility in which a registered customer will get interest on unused balance at the end of the month which is two to four timesmore than bank interest rate.

2.0 Company Summary

The Deity Retail Store sells products and provides excellent customer service for the general public. We have leased a retail store which we use

to market and merchandise our products. It islocated in Gomtinagar.

Deity Retail will rent a 3,000-square-foot space,having 1,000 square feet of front space. Located inthe brand-new Town Gomtinagar, it is a high trafficarea. The space will be next to NeelKanth Sweets.

The space is easily accessible and provides ample parking for its customers. The space is visible fromall points within the center itself as well as thetraffic from Vivekkhand Road and JaipuriaManagement Institute.

Since the selected location is in the heart of oneof the busiest retail corridors in the area, we feel



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that this space is the best possible location inGomtinagar and surrounding areas.

2.1 Hours of OperationStore hours will be 7 days a week from 10:00

A.M. until 10:00 P.M. Checks and all major credit cards will be accepted. A food stamp policy alongwith other policies will be in place.

2.2 Company OwnershipDeity Retail is a sole-proprietorship and is

registered to the owner, Amar Kumar Gupta.

2.3 Start-up Summary Start-up costs will be financed through a

combination of owner investment and a short-termloan. The start-up chart shows the distribution of financing.

Start-up PlanStart-up Expenses Rs.Deposit on Location 100000Rent (2 months) 20000Build-out of location (including sign) 120000Telephone Deposits/2 months' payments 75000

Credit Card Machine 1500



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License and Permits 5000Insurance (6 months) 3000

Advertising (2 months) 6000

Miscellaneous 2000Total Start-up Expense 332500Start-up Assets Needed Cash Requirements 120000Start-up Inventory 880000Other Short-term Assets 0

Total Short-term Assets 1000000Long-term Assets 0Total Assets 1000000Total Start-up Requirements 1332500Left to Finance: 0

Start-up Funding PlanInvestment

Amar Kumar Gupta Rs. 532500Investor 2 Rs. 0Other Rs. 0Total Investment Rs. 532500

Short-term LiabilitiesUnpaid Expenses Rs. 0Short-term Loans Rs.800000Interest-free Short-term Loans Rs. 0Subtotal Short-term Liabilities Rs.800000Long-term Liabilities Rs. 0Total Liabilities Rs.800000



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Loss at Start-up Rs.30000Total Capital Rs.500000Total Capital and Liabilities Rs.832500

Check line Rs. 0

2.4 PRODUCTS

The Deity Retail Store will offer the top 31 best-selling industry items as determined by Retail

Association.

The store will sell over 3,000 private label and national brand products to the community.

As the most progressive company in the

industry, Deity Retail plans to offer a greater number of products and services in the future so asto create another dimension of competitiveadvantage. So that our customers will feel secure,we will subscribe to the security services offered by the security center of which we are a part. This willcut down on graffiti and loitering and insure thesafety of both employees and customers.

Deity Retail will sell the same products as other convenience stores in the same packaging sizes,quality, and quantity as other stores. This includessoft drinks, fruit juices, sport drinks, hot and cold

snacks, grocery items, paper products, toothpaste,all general merchandise etc.



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All products will be locally or nationally branded. In addition computerized transactionmachine can dispense cash, stamps, Lotto and

phone cards and other coupons and will have theability to create personal accounts that can display

preferred items, retain shopping lists and other services. An interactive "customer service rep" willbe able to answer questions and pass on commentsto the company's management.

The Deity Retail Store sells a variety of quality discount merchandise. The types of merchandise wewill carry will include items such as, household goods, toys, cosmetics, candy, and a list of itemstoo exhaustive to list here. A dedicated staff iscommitted to providing excellent customer service.

The merchandise is purchased from a variety of well-known manufacturers such as Procter &Gamble, Hindustan Unilever Limited as well as anumber of other generic branded companies.Shipments arrive on a daily basis. We will continueto find new product lines that can be added to our

inventory.

We are able to sell products at very low prices,because we will purchase items from discontinued lines, seconds, over runs, etc., that cannot be sold to a manufacturer's usual retail customers.

Alternative Snacks



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expenditures are only Rs. 23 in households with fiveor more members but Rs. 35 in one-person homes,according to the Food Marketing Institute.

The Drishti Creative Services Department isready to meet those needs by providing everythingfrom concepts and design to printing and signage.They are experts in the process of creating and

printing advertising, brochures, newsletters,

business forms, stationery/business cards, P.O.S.materials, screen-printed clothing/merchandise, and weekly 4-color grocery insert mailers/circulars.Whether we need a bag stuffer, a new logo,billboard advertising, radio spots, TV commercials,or a video, their creative and professional team of associates and state-of-the-art printing equipment offer customers high-quality products in a timely and efficient manner.

We expect sales to increase steadily asconsumers find that they can purchase a variety of quality items at bargain prices. We intend to tap

into the retail market with pricing that willencourage quantity buying, and our pricing willattract consumers on fixed budgets.

Our target market is the working classindividuals, the elderly, and students, many of whom are price conscious and looking to find avalue for their rupee.



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Our market is booming. Convenience storeindustry sales rose 8.6% for 2002. Overall retailsales grew by only 6.3% and grocery sales followed

with 2.4% growth, proving once again that theconvenience store industry has become a powerfulforce in retailing.

Convenience stores serve the entire purchasing population of its geographical area but focuses oncustomers who need to purchase items outside of

normal working hours such as swing shift employeesand quick shoppers looking for snacks and related items. Therefore we have segmented our market into night shoppers, quick shoppers, and others.Growth rates for these three segments match the

population growth for the surrounding area.Deity Retail will provide high quality

merchandise at a discount price range to itscustomers. Deity Retail will be able to maintain itscompetitiveness.

3.1 Market Segmentation

Seventy-three percent of our shoppers arefemale head of the households, 11 percent are malehead of the households, 15 percent are both and 1

percent are other. Household Income: Averageweekly household spending ranges from Rs. 2000

for shoppers earning under Rs. 15,000 and Rs.



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25000 for those earning more than Rs. 75,000 per month. Spending on groceries at the consumer's

primary store also increases with income from Rs.

1500 per week for those families earning Rs.15,0000 or less per year to Rs. 2500 per week for those earning over Rs. 75,0000.

Our target market for our test storeencompasses a one kilometer radius in which theapproximate population is 50,000 (based on census

information).The majority of household monthly incomes

range from Rs. 20,000 - Rs. 30,000 (50.3%), yet there are also affluent household incomes rangingfrom Rs. 50,000 - Rs. 100,000 (15.4%).

The target female market is in a growingcommunity that has a population in excess of 39,889 people, well over 14,344 households, of which approximately 53.8 percent are female. Themedian family income for Gomtinagar is Rs. 21,729.

Convenience stores serve the entire purchasing population of its geographical area but focuses oncustomers who need to purchase items outside of

normal working hours such as swing shift employeesand quick shoppers looking for snacks and related items.



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Market Analysis

Year 1 Year 2 Year 3 Year 4 Year 5PotentialCustomer s

Growt h

CAGR

Late night shoppers

3% 78,000 80,340 82,750 85,233 87,7903.00%

Quick shoppers

2% 42,000 42,840 43,697 44,571 45,4622.00%

Other 3% 30,000 30,840 31,704 32,592 33,5052.80%

Total 2.68%150,00

0

154,02

0

158,15

1

162,39

6

166,75

7

2.68

%

General Statistics for 1999 in the area are asfollows:

Total Population - 49,889Number of Households - 9,344

Population by Gender Male - 46.2% Female - 53.8%

Income FiguresMedian Household Income - Rs. 21,729

Household Income Under Rs. 50K - 75.3%

Household Income Rs. 50K-Rs. 100K - 20.8%



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Household Income Over Rs. 100K - 4.0%

1990 Housing Figures

Average Home Value - Rs. 38,152 Average Rent - Rs. 272

The businesses target client groups are local

residents within a 1 Km radius, or approximately 1,000 people.

3.2 Target Market Segment Strategy

Deity Retail will provide high quality

merchandise at a discount price range to itscustomers. Deity Retail will be able to maintain itscompetitiveness.

Our store will meet the grocery needs of thesurrounding neighborhood of female or male head of households earning Rs. 15,000 per year or more.

We focus on the price conscious consumer whois looking for value as well as quality. Both the Bend and the Redmond groups will be marketed to asthey are isolated populations which do most of their shopping in the greater Bend area. If we can attract and keep these consumers the word will continue to

spread about what our store has to offer.



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The approaches to be used to attract thesecustomers will be a website, radio and print advertising, signs in the store windows, and word of

mouth advertising from our satisfied customers.

3.3 Technology: Electronic Marketing

Deity Retail is committed to keeping up withtechnology changes, thereby gaining a competitive

edge in the marketplace. Computers and other information systems are integrated to providemanagement information and time-saving tools.

These include:E-mail systems

Standard accounting softwareComputer-based training

Support is always available to answer systemand software development questions, or provide

programming solutions as new industry developments appear.

To support our retail store(s), electronicmarketing allows us to access complete dataanalysis and marketing services. These servicesinclude data storage, strategic

planning/consultation, sourcing for card/key tag

manufacturing, custom marketing program



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development, promotions and campaigns, electronicmarketing training and education, retailer-specificdata analysis, and support of third-party programs.

3.4 Promotions

Building store traffic, generating consumer excitement, accelerating sales and profits, and

positioning our store competitively in the market will

be relatively simplified by the use of the SalesPromotions. Deity Retail select those promotionsthat best meet their unique marketing needs.Backed by TV spots, circulars, P.O.S. materials,sweepstakes and more, this promotional activity iskey to our retail success.

We focuse on these major areas:

Internal and external store appearance Product availability Point-of-purchase materials

Food service Most importantly, the quality of service

received at the register Employees are eligible to earn cash incentives

and top stores are honored with awards quarterly.

In order to portray the professional image that Deity Retail customers have come to expect, a



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selection of uniforms are available. Uniformrequirements are facilitated with the use of acontracted distribution and laundry service.

Industry Analysis

In 1999, retail sales grew 9 percent to almost Rs. 3 trillion rupees. General merchandise and

apparel grew to Rs. 784.5 billion, a 7.6 percent riseover 1998. According to the Department of Commerce, Internet shopping reached Rs. 5.3 billionor .64 percent of retail sales in 1999. The growth of traditional retailing should not be robust due to adearth of economically favorable store locations.Many companies have responded by using their capital for other purposes such as reducing long-term debt and repurchasing their common stock.

Some companies can continue to grow their store count where they have a very specificdemographic group to serve and locations can be

developed in sparse locations at minimal costs. Keysto their success are convenient locations, relatively small stores, and the ability to provide most nonfood merchandise to their lower-incomecustomer bases.

The retailing industry is mature and slowgrowing. These factors mean companies will have to



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do a better job of managing their operations.Specifically, retailers must close unprofitable stores,locate in regions with faster growth, and manage

their inventory better. Retailers must also invest inautomated processes to keep their costs down.Some companies have taken steps to reduce their exposure to economic cycles and consumer trends.

Traditional retailers may have finally recognized the potential of Internet commerce and its impact on their business. Initially, retailers had just awebsite that was more for informational purposesthan e-commerce transactional purposes. However,beginning in the year 2000, several retailers willdevote more time to developing full blown e-commerce sites.

Convenience store industry sales rose 8.6% toRs. 86.3 billion for 2002. Overall retail sales grew by only 6.3%, and grocery sales followed with 2.4%growth, proving once again that the conveniencestore industry has become a powerful force inretailing.

Merchandise sales per customer increased 7.4% in 2000 suggesting that convenience storesare placing higher priority in filling the customers'needs. Companies that align themselves properly tofill those needs will be successful in the future.



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Gross margin for the quarter widened to 13.1 percent from 12.2 percent, reflecting the higher margins associated with the retail grocery

operations acquired in fiscal 2000.

4.1Industry Trends

Consumers are more value conscious thanthey've been in the past. Their shopping habits have

shifted from department stores to discounters and mass merchandisers. Many consumers can find thesame items at a mass merchandiser that they canfind at a department store at a substantially lower

price.Competition and Buying Patterns

There is currently no other store of this kind inthe area, which ensures its success!

Deity Retail will offer a wide selection of generalmerchandise. Having over 5,000 different items tochoose from for its inventory selection insures that Deity Retail will be able to maintain a full and diverse inventory for its customers. It will havesuppliers that can deliver these items within 5-10working days, so the shelves and walls will remainfull and well-stocked.

Some retailers have responded by offeringtheme promotions during other parts of the year,such as Holi, Rakshabandhan, Deepawali,

independence day, Republic Day. Retailers are also



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requiring their suppliers to develop unique and exclusive merchandise and product assortments for their stores to avoid competition with another store

for the same product.Consumers are much more value-oriented

which has contributed to the growth of massmerchandise stores. Another indication is thegrowth of the wholesale and retail store concept over the past two decades. These stores allow

consumers to buy products in bulk and get more products for their money. These stores mostly carry fast-moving merchandise brands which are number one or two in their respective product categories.

The Gomtinagar area continues to expand,offering the retail establishments an ever-growingopportunity for success.

4.2 Competition

Marketed at a lower shelf price than nationalbrands, private brand products give Deity Retailretail a competitive advantage.

The store will be in walking distance of areashoppers, whereas the next nearest grocery store istwo to three kilometers from our store location.

Consumers demand quality customer service,fair pricing, and a convenient location.



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Competition is very tough with customer service and location key components. The selectionof merchandise a store provides is also very

important.

4.3 Buying PatternsThe average household spends per year:Food Rs.60000.00Health and personal hygiene Rs. 6000.00

Other Rs.15000.00Total Rs.81000.00

Currently there are 5000 households within a 1km radius and approximately 49,345 households inthe gomtinagar. According to survey reports,Gomtinagar residents spend 40 crore rupees per

year on grocery store and other food products.Based upon the number of households and the

average spending Gomtinagar residents spend 14,872.00 per person per year on grocery store and other food products.

Calculating the average spending based upon

5000 homes in the local area at 5% of averagespending it is estimated that Reid's ConvenienceStore could conservatively gross Rs. 6000,000 per

year.



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Strategy and ImplementationSummary

Amar Kumar Gupta has chosen three strategiesfor implementation of Deity Retail and they are:

to build sales volume to create a customer database to develop an effective product line and pricing

strategy

All business is helped by advertising and referrals,so for the first few years the Deity Retail Store willneed to be aggressive in getting new customers,who will then pass the word on, and the businesscan begin to experience sustained growth.

The most critical element of Deity Retail's successwill be its marketing and advertising. In order tocapture attention and sales Deity Retail will use

prominent signs at the store locations, billboards,media bites on local news, and radio advertisements

to capture customers.Many of the initial customers will be drawn to the

unique nature of the store and will then have theopportunity to realize the cost savings of Deity Retail. We expect an average 27% increase in salesfrom year to year. This may seem very high, but

considering the level of initial sales and the growth



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possibilities, management actually considers this tobe conservative.

The Deity Retail Store uses a strategy of totalmarket service. Our promise is in our location and the products we sell, the people we attract, and theatmosphere we create.

Ultimately, we are selling more than just merchandise. We are selling ourselves. We want to

provide the kind of customer service that will provide an atmosphere that creates a positiveshopping experience for our customers.

Strategic Assumptions:

1. Every person with income limitations or on fixed

incomes is a potential customer.2. Marketing to these segments of the population

will lead to an expansion in overall market growth.

5.1 Distribution Strategy:

Customers can contact the Deity Retail Store by telephone, fax, and by dropping in. The Deity Retail Store's nearest competitors' are five km.around either direction. The store can stock request items for regular area residents.

5.2 Services & Support Philosophy



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Giving careful consideration to customer responsiveness, the Deity Retail Store's goal willbe to meet and exceed every service expectation

of its food products and retail merchandise.Quality service and quick responsiveness will bethe philosophy guiding a customer approach tothe Deity Retail Store.

5.3 Competitive Edge

Deity Retail will be locally owned and operated,insuring that the needs and desires of the localcommunity are met. It will also be able to providespecial ordering of items for its customers and offer a personal and friendly atmosphere that you cannot find in larger chain variety stores.

Deity Retail's competitive edge will be the lower prices we will charge our customers and the novel purchasing experience that will draw shoppers. Inthe convenience store industry, low cost and availability are the two success criteria. We plan tocreate these advantages in a new, high-tech

environment that will retain customers.

Our location is a very important competitiveedge. We are located in the popular location whichhas a high appeal to many different kinds of consumers. There is a good mix of high and low end shops with several quality restaurants near by. Withthe sources we are working with it will be possible to



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carry many name brand items at a discount price. Add a staff committed to providing great customer service and the Deity Retail Store will be an

attractive stop for the consumer.

5.4 Marketing Strategy

The most critical element of Deity Retail'ssuccess will be its marketing and advertising.Convenience stores serve the entire purchasing

population of its geographical area but focuses oncustomers who need to purchase items outside of normal working hours such as swing shift employeesand quick shoppers looking for snacks and related items. In order to capture attention and sales Deity Retail will use prominent signs at the store

locations, billboards, media bites on local news, and radio advertisements to capture customers. Many of the initial customers will be drawn to the uniquenature of the store and will then have theopportunity to realize the cost savings of Deity Retail. Since automated shopping is still in itsinfancy, the firm expects to invest a great deal of itsavailable cash and revenues in marketing efforts.

The Deity Retail Store will benchmark our objectives for sales promotion and mass selling.

We are focusing our marketing effort on thecommunity of consumers that want a store whichhas an interesting variety of merchandise at bargain



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prices. We will implement a strategy that treatsthese customers as a community. This means our marketing resources will be centered on both sales

promotions (events, displays) and personal sales(customer service, friendly atmosphere).

We will stay within our marketing budget. Marketing promotions will be consistent with

the Mission Statement.

5.5Sales Strategy

Since our store will be a stand-alone, remotefacility, there is little in the way being able todirectly influence how we close the sales other thanto have an attractive storefront with our low pricesand easy-to-use system. We believe that this initself is its own seller. One critical procedure toensure top customer service and reliability will beestablishing a method for keeping enoughinventories of all our products. We will be usingindustry data on inventory for other conveniencestore chains to assist us.

Our sales strategy is to:

develop a website for e-commerce sales withinthe next year

provide quality customer service have a "no cash refund/exchanges only" policy accept all major credit cards



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survey our customers regarding products they would like to see added to our store

sponsor school and other community events automate our sales process, such as using bar

codes and a Point-of-Purchase cash register totrack inventory and sales

Employees are paid a straight wage but canachieve a semi-yearly bonus based on profits and customer satisfaction rates.

All potential sales will be attended to in a timely fashion and long-term salesperson-customer relationships will take precedence over salesclosure.

5.6 Sales Forecast

Based on a 20% mark-up, our forecasted salesfor years one, two, and three respectively are: Rs.2,480,106; Rs. 3,149,735; Rs. 4,000,163. This givesus an average 27% increase from year to year. Thismay seem very high, but considering the level of

initial sales and the growth possibilities,management actually considers this to beconservative.



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Sales Forecast Year 1 Year 2 Year 3SalesDrinks Rs. 978,070 Rs. 1,242,149 Rs. 1,577,529Snacks Rs. 873,277 Rs. 1,109,061 Rs. 1,408,508Magazines/newspapers Rs. 209,586 Rs. 266,175 Rs. 338,042General grocery items Rs. 279,449 Rs. 354,900 Rs. 450,723Other Rs. 139,724 Rs. 177,450 Rs. 225,361Total Sales Rs. 2,480,106 Rs. 3,149,735 Rs. 4,000,163

Direct Cost of Sales Year 1 Year 2 Year 3Drinks Rs. 753,114 Rs. 956,455 Rs. 1,214,697Snacks Rs. 672,423 Rs. 853,977 Rs. 1,084,551Magazines/newspapers Rs. 161,382 Rs. 204,955 Rs. 260,292General grocery items Rs. 215,175 Rs. 273,273 Rs. 347,056



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Other Rs. 107,588 Rs. 136,636 Rs. 173,528Subtotal Direct Cost of Sales Rs. 1,909,682 Rs. 2,425,296 Rs. 3,080,125

5.7 Milestones

The milestone table shows how theresponsibilities break down in the start up of our store. Ted Brinkman will head up the drafting of thebusiness plan and will conduct the drive to securefunding. Jim Spencer will work to secure a site for the store and will handle the details with the

personnel plan. Our accountant Dick Garret will set up our accounting plan.

MilestoneStart Date

End Date Budget Departmen

t Business Plan 1/1/2009 2/3/2009 Rs. 1,000 Owner Secure Start UpFunding

2/7/2009 4/9/2009 Rs. 500 Owner

Site Selection 3/1/2009 4/2/2009 Rs. 1,500Managemen

t

Personal Plan 6/4/2009 6/5/2009 Rs. 500 Management



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Accounting Plan 7/8/2003 17/8/2003 Rs. 1,000 AccountingTotals Rs. 4,500

Management Summary

Amar Kumar Gupta, owner of Deity Retail , hasa M.B.A. degree in Retail. For two years she hasmanaged a store similar to Deity Retail . She has a

full understanding of how to operate and manage aretail store and its employees.

6.1Personnel PlanThe personnel plan is included in the following

table. It shows the Manager's hourly pay, followed by that of the rest of the staff. Each of these

positions will overlap to make sure the customersare receiving excellent customer service and that adequate help is on hand.

Personnel Plan FY2002 FY2003 FY2004Other 0 0 01 Manager 45,760 45,760 45,760

1 Assistant Manager 37,440 37,440 37,4404 Cashiers 74,880 74,880 74,8804 Administrative Workers 74,880 74,880 74,8804 Laborers/Stockers 62,400 62,400 62,400Total Payroll 295,360 295,360 295,360Total Headcount 15 15 15Payroll Burden 44,304 44,304 44,304Total Payroll Expenditures 339,664 339,664 339,664



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General Assumptions FY2010 FY2011 FY2012

Short-term Interest Rate % 10.00% 10.00% 10.00%

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

Payment Days Estimator 30 30 30

Collection Days Estimator 45 45 45

Inventory Turnover Estimator 6.00 6.00 6.00

Tax Rate % 25.00% 25.00% 25.00%

Expenses in Cash % 10.00% 10.00% 10.00%

Sales on Credit % 0.00% 0.00% 0.00%

Personnel Burden % 15.00% 15.00% 15.00%

7.2 Break-even Analysis

A Break-even Analysis table has been completed on

the basis of average costs/prices. With fixed costs,average sales, and average variable costs, the tableand chart show what we need per month tobreakeven.



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Pro Forma Profit and LossYear 1 Year 2 Year 3

Sales Rs. 2,480,106 Rs. 3,149,735 Rs. 4,000,163Direct Cost of Sales Rs. 1,909,682 Rs. 2,425,296 Rs. 3,080,125Other Costs of Goods Rs. 0 Rs. 0 Rs. 0Total Cost of Sales Rs. 1,909,682 Rs. 2,425,296 Rs. 3,080,125

Gross Margin Rs. 570,424 Rs. 724,439 Rs. 920,037Gross Margin % 23.00% 23.00% 23.00%

ExpensesPayroll Rs. 167,400 Rs. 214,000 Rs. 238,000Sales and Marketing and Other Expenses

Rs. 60,000 Rs. 130,000 Rs. 130,000

Depreciation Rs. 7,200 Rs. 7,200 Rs. 7,200Leased equipment Rs. 50,000 Rs. 60,000 Rs. 60,000Rent Rs. 84,000 Rs. 84,000 Rs. 84,000Utilities Rs. 28,800 Rs. 30,000 Rs. 30,000

Accounting/bookeeping Rs. 6,500 Rs. 9,000 Rs. 9,000

Insurance Rs. 14,400 Rs. 14,400 Rs. 14,400Payroll Taxes Rs. 0 Rs. 0 Rs. 0Other Rs. 38,000 Rs. 45,000 Rs. 45,000



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Total Operating Expenses Rs. 456,300 Rs. 593,600 Rs. 617,600

Profit Before Interest and Taxes Rs. 114,124 Rs. 130,839 Rs. 302,437EBITDA Rs. 121,324 Rs. 138,039 Rs. 309,637Interest Expense Rs. 16,250 Rs. 16,400 Rs. 14,650Taxes Incurred Rs. 29,362 Rs. 34,332 Rs. 86,336

Net Profit Rs. 68,512 Rs. 80,107 Rs. 201,451Net Profit/Sales 2.76% 2.54% 5.04%

7.5 Projected Balance Sheet

All of our tables will be updated monthly toreflect past performance and future assumptions.

Future assumptions will not be based on past performance but rather on economic cycle activity,regional industry strength, and future cash flow

possibilities. We expect solid growth in net worthbeyond the year 2010.

The following table shows the Projected Balance

Sheet for Deity Retail

Pro Forma Balance Sheet Year 1 Year 2 Year 3

Assets

Current AssetsCash Rs. 357,649 Rs. 224,519 Rs. 262,994Inventory Rs. 371,402 Rs. 471,680 Rs. 599,034Other Current Assets Rs. 8,000 Rs. 8,000 Rs. 8,000Total Current Assets Rs. 737,050 Rs. 704,199 Rs. 870,027

Long-term AssetsLong-term Assets Rs. 72,000 Rs. 72,000 Rs. 102,000

Accumulated Depreciation Rs. 7,200 Rs. 14,400 Rs. 21,600Total Long-term Assets Rs. 64,800 Rs. 57,600 Rs. 80,400Total Assets Rs. 801,850 Rs. 761,799 Rs. 950,427

Liabilities and Capital Year 1 Year 2 Year 3

Current Liabilities Accounts Payable Rs. 428,518 Rs. 242,359 Rs. 302,537Current Borrowing Rs. 20,000 Rs. 13,000 Rs. 0Other Current Liabilities Rs. 10,000 Rs. 10,000 Rs. 10,000



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Subtotal Current Liabilities Rs. 458,518 Rs. 265,359 Rs. 312,537

Long-term Liabilities Rs. 150,000 Rs. 145,000 Rs. 135,000Total Liabilities Rs. 608,518 Rs. 410,359 Rs. 447,537

Paid-in Capital Rs. 374,000 Rs. 452,000 Rs. 452,000Retained Earnings

(Rs.249,180)

(Rs.180,668)

(Rs. 150,561)

Earnings Rs. 68,512 Rs. 80,107 Rs. 201,451Total Capital Rs. 193,332 Rs. 351,439 Rs. 502,891Total Liabilities and Capital Rs. 801,850 Rs. 761,799 Rs. 950,427

Net Worth Rs. 193,332 Rs. 351,439 Rs. 502,891

7.6 Business Ratios

We expect our net profit margin and grossmargin, to increase steadily over the three-year

period. Our net working capital will increasehandsomely by year three, proving that we have thecash flows to remain a going concern. The followingtable shows these important financial ratios.

We are using the industry standard businessratios for independent convenience store chains asa comparison to our own. There are some significant differences between the two since we have acompletely different storefront than our competitors. In addition, we expect higher

percentages in inventory as we will be operatingonly one store initially and even many independent convenience store owners often have two or morefacilities. Our long-term assets are low since we areonly renting our facilities.



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Ratio AnalysisYear 1 Year 2 Year 3 Industry Profile

Sales Growth 0.00% 27.00% 27.00% 2.27%

Percent of Total AssetsInventory 46.32% 61.92% 63.03% 22.18%Other Current Assets 1.00% 1.05% 0.84% 26.81%Total Current Assets 91.92% 92.44% 91.54% 56.12%Long-term Assets 8.08% 7.56% 8.46% 43.88%Total Assets 100.00% 100.00% 100.00% 100.00%

Current Liabilities 57.18% 34.83% 32.88% 26.39%Long-term Liabilities 18.71% 19.03% 14.20% 24.87%Total Liabilities 75.89% 53.87% 47.09% 51.26%Net Worth 24.11% 46.13% 52.91% 48.74%

Percent of SalesSales 100.00% 100.00% 100.00% 100.00%Gross Margin 23.00% 23.00% 23.00% 23.55%Selling, General & Administrative Expenses 20.26% 20.10% 17.78% 16.21%

Advertising Expenses 0.00% 0.00% 0.00% 0.85%Profit Before Interest and Taxes 4.60% 4.15% 7.56% 1.02%

Main RatiosCurrent 1.61 2.65 2.78 1.68Quick 0.80 0.88 0.87 0.71Total Debt to Total Assets 75.89% 53.87% 47.09% 4.63%Pre-tax Return on Net Worth 50.63% 32.56% 57.23% 57.28%Pre-tax Return on Assets 12.21% 15.02% 30.28% 10.83%

Additional Ratios Year 1 Year 2 Year 3Net Profit Margin 2.76% 2.54% 5.04%Return on Equity 35.44% 22.79% 40.06%

Activity RatiosInventory Turnover 10.91 5.75 5.75

Accounts Payable Turnover 6.06 12.17 12.17Payment Days 27 42 27Total Asset Turnover 3.09 4.13 4.21

Debt RatiosDebt to Net Worth 3.15 1.17 0.89Current Liab. to Liab. 0.75 0.65 0.70

Liquidity RatiosNet Working Capital Rs. 278,532 Rs. 438,839 Rs. 557,491Interest Coverage 7.02 7.98 20.64

Additional Ratios Assets to Sales 0.32 0.24 0.24Current Debt/Total Assets 57% 35% 33%

Acid Test 0.80 0.88 0.87Sales/Net Worth 12.83 8.96 7.95Dividend Payout 0.00 0.00 0.25

Appendix



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Personnel PlanMonth

1Month

2Month

3Month

4Month

5Month

6Month

7Month

8Month

9Month

10Month

11Month

12

Mr. Bean0%

Rs.3,500

Rs.3,500

Rs.3,500

Rs.3,500

Rs.3,500

Rs.3,500

Rs.3,500

Rs.3,500

Rs.3,500

Rs.3,500

Rs.3,500

Rs.3,500

Mrs. Tuck 0% Rs.3,500 Rs.3,500 Rs.3,500 Rs.3,500 Rs.3,500 Rs.3,500 Rs.3,500 Rs.3,500 Rs.3,500 Rs.3,500 Rs.3,500 Rs.3,500

Mr. Takeda0%

Rs.2,500

Rs.2,500

Rs.2,500

Rs.2,500

Rs.2,500

Rs.2,500

Rs.2,500

Rs.2,500

Rs.2,500

Rs.2,500

Rs.2,500

Rs.2,500

Officemanager

0%

Rs.1,700

Rs.1,700

Rs.1,700

Rs.1,700

Rs.1,700

Rs.1,700

Rs.1,700

Rs.1,700

Rs.1,700

Rs.1,700

Rs.1,700

Rs.1,700

Technicians0%

Rs.1,500

Rs.1,500

Rs.1,500

Rs.1,500

Rs.1,500

Rs.1,500

Rs.3,000

Rs.3,000

Rs.4,500

Rs.4,500

Rs.4,500

Rs.4,500

Total People 5 5 5 5 5 5 6 6 7 7 7 7

Total PayrollRs.12,700

Rs.12,700

Rs.12,700

Rs.12,700

Rs.12,700

Rs.12,700

Rs.14,200

Rs.14,200

Rs.15,700

Rs.15,700

Rs.15,700

Rs.15,700

General AssumptionsMonth

1Month

2Month

3Month

4Month

5Month

6Month

7Month

8Month

9Month

10Month

11Month

12PlanMonth

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-termInterest

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 0

Pro Forma Profit and LossMont

h 1Mont

h 2Mont

h 3Month

4Month

5Month

6Month

7Month

8Month

9Month

10Month

11Month

12

SalesRs.71,000

Rs.83,780

Rs.98,860

Rs.116,655

Rs.137,653

Rs.162,431

Rs.191,668

Rs.226,169

Rs.266,879

Rs.314,917

Rs.371,602

Rs.438,491

Direct Cost of Sales

Rs.

54,670

Rs.

64,511

Rs.

76,123

Rs.

89,825

Rs.

105,993

Rs.

125,072

Rs.

147,585

Rs.

174,150

Rs.

205,497

Rs.

242,486

Rs.

286,134

Rs.

337,638

Other Costs of Goods

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.54,670

Rs.64,511

Rs.76,123

Rs.89,825

Rs.105,993

Rs.125,072

Rs.147,585

Rs.174,150

Rs.205,497

Rs.242,486

Rs.286,134

Rs.337,638

Gross MarginRs.16,330

Rs.19,269

Rs.22,738

Rs.26,831

Rs.31,660

Rs.37,359

Rs.44,084

Rs.52,019

Rs.61,382

Rs.72,431

Rs.85,469

Rs.100,853

Gross Margin %23.00%

23.00%

23.00%

23.00%

23.00%

23.00%

23.00%

23.00%

23.00%

23.00%

23.00%

23.00%

Expenses



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PayrollRs.12,700

Rs.12,700

Rs.12,700

Rs.12,700

Rs.12,700

Rs.12,700

Rs.14,200

Rs.14,200

Rs.15,700

Rs.15,700

Rs.15,700

Rs.15,700

Sales and Marketing and Other Expenses

Rs.5,000

Rs.5,000

Rs.5,000

Rs.5,000

Rs.5,000

Rs.5,000

Rs.5,000

Rs.5,000

Rs.5,000

Rs.5,000

Rs.5,000

Rs.5,000

Depreciation Rs.600

Rs.600

Rs.600

Rs.600

Rs.600

Rs.600

Rs.600

Rs.600

Rs.600

Rs.600

Rs.600

Rs.600

Leased equipment

Rs.4,000

Rs.4,000

Rs.4,000

Rs.4,000

Rs.4,000

Rs.4,000

Rs.4,000

Rs.4,000

Rs.4,000

Rs.4,000

Rs.4,000

Rs.6,000

Rent Rs.7,000

Rs.7,000

Rs.7,000

Rs.7,000

Rs.7,000

Rs.7,000

Rs.7,000

Rs.7,000

Rs.7,000

Rs.7,000

Rs.7,000

Rs.7,000

UtilitiesRs.2,400

Rs.2,400

Rs.2,400

Rs.2,400

Rs.2,400

Rs.2,400

Rs.2,400

Rs.2,400

Rs.2,400

Rs.2,400

Rs.2,400

Rs.2,400

Accounting/bookeeping

Rs.500

Rs.500

Rs.500

Rs.500

Rs.500

Rs.500

Rs.500

Rs.500

Rs.500

Rs.500

Rs.750

Rs.750

InsuranceRs.1,200

Rs.1,200

Rs.1,200

Rs.1,200

Rs.1,200

Rs.1,200

Rs.1,200

Rs.1,200

Rs.1,200

Rs.1,200

Rs.1,200

Rs.1,200

Payroll Taxes15%


Other 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.3,000

Rs.4,000

Rs.5,000

Rs.10,000

Total OperatingExpenses

Rs.35,400

Rs.35,400

Rs.35,400

Rs.35,400

Rs.35,400

Rs.35,400

Rs.36,900

Rs.36,900

Rs.39,400

Rs.40,400

Rs.41,650

Rs.48,650

Profit BeforeInterest and Taxes

(Rs.19,070)

(Rs.16,131)

(Rs.12,662)

(Rs.8,569)

(Rs.3,740)

Rs.1,959

Rs.7,184

Rs.15,119

Rs.21,982

Rs.32,031

Rs.43,819

Rs.52,203

EBITDA(Rs.18,470)

(Rs.15,531)

(Rs.12,062)

(Rs.

7,969)

(Rs.

3,140)

Rs.

2,559

Rs.

7,784

Rs.15,719

Rs.22,582

Rs.32,631

Rs.44,419

Rs.52,803

Interest ExpenseRs.958

Rs.1,375

Rs.1,375

Rs.1,375

Rs.1,375

Rs.1,375

Rs.1,375

Rs.1,375

Rs.1,417

Rs.1,417

Rs.1,417

Rs.1,417

Taxes Incurred (Rs.6,008

)

(Rs.5,252

)

(Rs.4,211

)

(Rs.2,983)

(Rs.1,534)

Rs.175

Rs.1,743

Rs.4,123

Rs.6,170

Rs.9,184

Rs.12,721

Rs.15,236

Net Profit (Rs.14,020)

(Rs.12,254)

(Rs.9,826

)

(Rs.6,961)

(Rs.3,580)

Rs.409

Rs.4,066

Rs.9,621

Rs.14,396

Rs.21,430

Rs.29,681

Rs.35,550

Net Profit/Sales-19.75%

-14.63%

-9.94%

-5.97%

-2.60%

0.25% 2.12% 4.25% 5.39% 6.80% 7.99% 8.11%

Pro Forma Cash FlowMonth

1Month

2Month

3Month

4Month

5Month

6Month

7Month

8Month

9Month

10Month

11Month

12CashReceived

Cash fromOperations

Cash SalesRs.71,000

Rs.83,780

Rs.98,860

Rs.116,655

Rs.137,653

Rs.162,431

Rs.191,668

Rs.226,169

Rs.266,879

Rs.314,917

Rs.371,602

Rs.438,491

Subtotal

Cash fromOperations

Rs.

71,000

Rs.

83,780

Rs.

98,860

Rs.

116,655

Rs.

137,653

Rs.

162,431

Rs.

191,668

Rs.

226,169

Rs.

266,879

Rs.

314,917

Rs.

371,602

Rs.

438,491



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AdditionalCashReceived Sales Tax,VAT,HST/GST

Received

0.00%


NewCurrent Borrowing

Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0Rs.5,000

Rs. 0 Rs. 0 Rs. 0

New Other Liabilities(interest-free)


New Long-termLiabilities

Rs. 0Rs.50,000

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

Sales of Other

Current Assets


Sales of Long-term

AssetsRs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0

NewInvestment Received

Rs. 0 Rs. 0 Rs. 0 Rs. 0Rs.50,000

Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0Rs.4,000

SubtotalCashReceived

Rs.71,000

Rs.133,780

Rs.98,860

Rs.116,655

Rs.187,653

Rs.162,431

Rs.191,668

Rs.226,169

Rs.271,879

Rs.314,917

Rs.371,602

Rs.442,491

Expenditur es

Month1

Month2

Month3

Month4

Month5

Month6

Month7

Month8

Month9

Month10

Month11

Month12

Expenditur es fromOperations

CashSpending

Rs.12,700

Rs.12,700

Rs.12,700

Rs.12,700

Rs.12,700

Rs.12,700

Rs.14,200

Rs.14,200

Rs.15,700

Rs.15,700

Rs.15,700

Rs.15,700

BillPayments

Rs.12,062

Rs.120,914

Rs.94,045

Rs.108,734

Rs.126,066

Rs.146,518

Rs.170,637

Rs.198,680

Rs.232,293

Rs.272,239

Rs.319,734

Rs.375,955

SubtotalSpent onOperations

Rs.24,762

Rs.133,614

Rs.106,745

Rs.121,434

Rs.138,766

Rs.159,218

Rs.184,837

Rs.212,880

Rs.247,993

Rs.287,939

Rs.335,434

Rs.391,655

AdditionalCashSpent Sales Tax,VAT,HST/GST Paid Out


PrincipalRepayment of Current Borrowing


Other Liabilities




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PrincipalRepayment Long-termLiabilitiesPrincipal

Repayment


PurchaseOther Current

Assets


PurchaseLong-term

AssetsRs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0

Dividends Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0 Rs. 0SubtotalCashSpent

Rs.24,762

Rs.133,614

Rs.106,745

Rs.121,434

Rs.138,766

Rs.159,218

Rs.184,837

Rs.212,880

Rs.247,993

Rs.287,939

Rs.335,434

Rs.391,655

Net CashFlow

Rs.46,238

Rs.166

(Rs.7,885)

(Rs.4,779)

Rs.48,887

Rs.3,212

Rs.6,831

Rs.13,289

Rs.23,886

Rs.26,979

Rs.36,168

Rs.50,835

CashBalance

Rs.160,058

Rs.160,225

Rs.152,340

Rs.147,561

Rs.196,448

Rs.199,661

Rs.206,492

Rs.219,780

Rs.243,667

Rs.270,645

Rs.306,813

Rs.357,649

Pro Forma Balance Sheet Month

1Month

2Month

3Month

4Month

5Month

6Month

7Month

8Month

9Month

10Month

11Month

12

Assets

Startin

gBalances

Current Assets

CashRs.113,820

Rs.160,058

Rs.160,225

Rs.152,340

Rs.147,561

Rs.196,448

Rs.199,661

Rs.206,492

Rs.219,780

Rs.243,667

Rs.270,645

Rs.306,813

Rs.357,649

Inventory Rs.10,000

Rs.60,137

Rs.70,962

Rs.83,735

Rs.98,807

Rs.116,592

Rs.137,579

Rs.162,343

Rs.191,565

Rs.226,047

Rs.266,735

Rs.314,747

Rs.371,402

Other

Current Assets

Rs.8,000

Rs.8,000

Rs.8,000

Rs.8,000

Rs.8,000

Rs.8,000

Rs.8,000

Rs.8,000

Rs.8,000

Rs.8,000

Rs.8,000

Rs.8,000

Rs.8,000

TotalCurrent

Assets

Rs.131,820

Rs.228,195

Rs.239,186

Rs.244,074

Rs.254,368

Rs.321,040

Rs.345,239

Rs.376,835

Rs.419,345

Rs.477,713

Rs.545,380

Rs.629,561

Rs.737,050

Long-term

AssetsLong-term

Assets

Rs.72,000

Rs.72,000

Rs.72,000

Rs.72,000

Rs.72,000

Rs.72,000

Rs.72,000

Rs.72,000

Rs.72,000

Rs.72,000

Rs.72,000

Rs.72,000

Rs.72,000

Accumula

ted Depreciat ion

Rs. 0 Rs.600 Rs.1,200 Rs.1,800 Rs.2,400 Rs.3,000 Rs.3,600 Rs.4,200 Rs.4,800 Rs.5,400 Rs.6,000 Rs.6,600 Rs.7,200



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TotalLong-term

Assets

Rs.72,000

Rs.71,400

Rs.70,800

Rs.70,200

Rs.69,600

Rs.69,000

Rs.68,400

Rs.67,800

Rs.67,200

Rs.66,600

Rs.66,000

Rs.65,400

Rs.64,800

Total Assets

Rs.203,82

0

Rs.299,5

95

Rs.309,9

86

Rs.314,2

74

Rs.323,9

68

Rs.390,0

40

Rs.413,6

39

Rs.444,6

35

Rs.486,5

45

Rs.544,3

13

Rs.611,3

80

Rs.694,9

61

Rs.801,85

0

Liabilitiesand Capital

Month1

Month2

Month3

Month4

Month5

Month6

Month7

Month8

Month9

Month10

Month11

Month12

Current Liabilities

AccountsPayable

Rs.8,000

Rs.117,795

Rs.90,440

Rs.104,554

Rs.121,209

Rs.140,862

Rs.164,052

Rs.190,981

Rs.223,271

Rs.261,643

Rs.307,280

Rs.361,179

Rs.428,518

Current Borrowing

Rs.15,000

Rs.15,000

Rs.15,000

Rs.15,000

Rs.15,000

Rs.15,000

Rs.15,000

Rs.15,000

Rs.15,000

Rs.20,000

Rs.20,000

Rs.20,000

Rs.20,000

Other Current Liabilities

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

Rs.10,000

SubtotalCurrent Liabilities

Rs.33,000

Rs.142,795

Rs.115,440

Rs.129,554

Rs.146,209

Rs.165,862

Rs.189,052

Rs.215,981

Rs.248,271

Rs.291,643

Rs.337,280

Rs.391,179

Rs.458,518

Long-termLiabilities

Rs.100,000

Rs.100,000

Rs.150,000

Rs.150,000

Rs.150,000

Rs.150,000

Rs.150,000

Rs.150,000

Rs.150,000

Rs.150,000

Rs.150,000

Rs.150,000

Rs.150,000

TotalLiabilities

Rs.133,000

Rs.242,795

Rs.265,440

Rs.279,554

Rs.296,209

Rs.315,862

Rs.339,052

Rs.365,981

Rs.398,271

Rs.441,643

Rs.487,280

Rs.541,179

Rs.608,518

Paid-inCapital

Rs.320,000

Rs.320,000

Rs.320,000

Rs.320,000

Rs.320,000

Rs.370,000

Rs.370,000

Rs.370,000

Rs.370,000

Rs.370,000

Rs.370,000

Rs.370,000

Rs.374,000

Retained Earnings

(Rs.249,180)

(Rs.249,180)

(Rs.249,180)

(Rs.249,180)

(Rs.249,180)

(Rs.249,180)

(Rs.249,180)

(Rs.249,180)

(Rs.249,180)

(Rs.249,180)

(Rs.249,180)

(Rs.249,180)

(Rs.249,180)

Earnings Rs. 0(Rs.14,020)

(Rs.26,274)

(Rs.36,100)

(Rs.43,061)

(Rs.46,641)

(Rs.46,232)

(Rs.42,166)

(Rs.32,545)

(Rs.18,150)

Rs.3,280

Rs.32,962

Rs.68,512

TotalCapital

Rs.70,820

Rs.56,800

Rs.44,546

Rs.34,720

Rs.27,759

Rs.74,179

Rs.74,588

Rs.78,654

Rs.88,275

Rs.102,670

Rs.124,100

Rs.153,782

Rs.193,332

TotalLiabilitiesand Capital

Rs.203,820

Rs.299,595

Rs.309,986

Rs.314,274

Rs.323,968

Rs.390,040

Rs.413,639

Rs.444,635

Rs.486,545

Rs.544,313

Rs.611,380

Rs.694,961

Rs.801,850

Net Worth

Rs.70,820

Rs.56,800

Rs.44,546

Rs.34,720

Rs.27,759

Rs.74,179

Rs.74,588

Rs.78,654

Rs.88,275

Rs.102,670

Rs.124,100

Rs.153,782

Rs.193,332

final after parts2

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