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. 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. d

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. Balance Sheet Cash Flow
Depreciation
Other Revenue Lines
TK Capacity Utilization TK Total Capacity
Sizing Opportunity Assumptions

6. Cash Flow
Working Capital
Security Deposit
ation Capex HO
Capex ZO
Capex AO

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. 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. 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. 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. 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. Terminal Value
4,964,961

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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 236 391 935

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. 1,869 3,136 4,819 6,568 8,664

45. FY18P
10,561
1,897
21%
68%
22%
FY18P
51%
26%
24%
101%
FY18P
5,386
2,746
2,535

46. 10,667

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. 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. 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. Total Revenue /
Year
2,812,500
1,562,500
703,125

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. 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. 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. 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. 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. 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. 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. Year 8 1,897 10,561
Total revenue generated -
Total revenue for Franchisee -
Total revenue for TARAhaat -

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. 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. 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. -
54,811 81,533
36,541 54,355
18,270 27,178

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. 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%