Income statements:

profit and loss

statement      
  year 1 year 2 year 3
Sales 7300000 11132500.00 13505000.00

Direct Cost of Sales 3000000.00 2700000.00 2500000.00

Other 0.00 0.00 0.00
Total Cost of Sales 3000000.00 2700000.00 2500000.00
       
Gross Margin 4300000.00 8432500.00 11005000.00
Gross Margin % 58.90% 75.75% 81.49%
       
       
Expenses      
Payroll 1680000 1800000 1950000

Sales and Marketing

(ADVT & PROMOTIONS
)and Other Expenses 100000.00 100000.00 100000.00
Depreciation 0.00 250000.00 225000.00
rent 1200000.00 1200000.00 1200000.00
Utilities 250000.00 270000.00 270000.00
Payroll Taxes 201600.00 216000.00 234000.00
Other $0 $0 $0
       
Total Operating
Expenses 3431600.00 3836000.00 3979000.00
       
Profit Before Interest
and Taxes 868400.00 4596500.00 7026000.00
EBITDA 868400.00 4596500.00 7026000.00
Interest Expense 434000.00 380184.00 333041.18
Taxes Incurred 52128.00 505957.92 803155.06
       
Net Profit 382272.00 3710358.08 5889803.76
Net Profit/Sales 5.24% 33.33% 43.61%
Balance sheet:

  Year 1 Year 2 Year 3

Assets      
       

Current Assets      
Cash in hand & bank 800000.00 350000.00 400000.00
inventory 1500000.00 1500000.00 1500000.00
loans and advances 542272 4040358 6094803
Other Current Assets 50000.00 600000.00 650000.00
Total Current Assets 2892272.00 6490358.00 8644803.00
       

Long-term Assets      
Long-term Assets 2500000.00 2500000.00 2500000.00
Accumulated Depreciation 0.00 250000.00 225000.00
Total Long-term Assets 2500000.00 2250000.00 2275000.00
Total Assets 5392272.00 8740358.00 10919803.00
       

Liabilities and Capital Year 1 Year 2 Year 3

       

Current Liabilities      
Accounts Payable 10000.00 30000.00 30000.00
Current Borrowing 0.00 0.00 0.00
Other Current Liabilities 0.00 0.00 0.00
Subtotal Current Liabilities 10000.00 30000.00 30000.00
       
Long-term Liabilities 3500000.00 3500000.00 3500000.00
Total Liabilities 3510000.00 3530000.00 3530000.00
       
Paid-in Capital 1500000.00 1500000.00 1500000.00
Retained Earnings 382272.00 3710358.08 5889803.76
       
Total Capital 1882272.00 5210358.08 7389803.76
Total Liabilities and Capital 5392272.00 8740358.08 10919803.76
Cash flow statements:

  cash flow statement    

       
Year 1 Year 2 Year 3  

Cash Received      
Cash from Operations      
Cash Sales      
Subtotal Cash from Operations 300000.00 565000.00 730000.00

  0.00 565000.00 730000.00

Additional Cash Received      

Sales Tax, VAT, HST/GST Received 0.00    

New Current Borrowing 876000.00 1335900.00 1620600.00

New Other Liabilities (interest-free) 0.00 0.00 0.00

New Long-term Liabilities 0.00 0.00 0.00

Sales of Other Current Assets 0.00 0.00 0.00

Sales of Long-term Assets 0.00 0.00 0.00

New Investment Received 0.00 0.00 0.00

Subtotal Cash Received 0.00 0.00 0.00

  1176000.00 2465900.00 3080600.00

Expenditures      

  Year 1 Year 2 Year 3

Expenditures from Operations      

Cash Spending      
Bill Payments 2030000.00 2170000.00 2320000.00
Subtotal Spent on Operations 10000.00 30000.00 30000.00

  2040000.00 2200000.00 2350000.00

Additional Cash Spent      

Sales Tax, VAT, HST/GST Paid Out      

Principal Repayment of Current
Borrowing 52128.00 505957.92 803155.06

Other Liabilities Principal Repayment 0.00 0.00 0.00

Long-term Liabilities Principal
Repayment 0.00 0.00 0.00
 Purchase Other Current Assets 437500.00 437500.00 437500.00

Purchase Long-term Assets 0.00 0.00 0.00

Subtotal Cash Spent 0.00 0.00 0.00

  489628.00 943457.92 1240655.06
Net Cash Flow      
2726372.00 3722442.08 4189944.94

Sales projections:

sales      
  1st year 2nd year 3rd year
182500
spa 0 2920000 4380000
547500
restaurent 0 8212500 9125000
730000 1113250
  0 0 13505000

Pay roll projections:

particulars salary qty amount

Therapists 2 Nos 5000 2 10000
Doctor 15000 1 15000
guards 2500 2 5000
servants 2500 4 10000
1 MANAGER 15000 1 15000
5 WAITERS 4000 5 20000
1 BILL CLERK 8000 1 8000
2 CLEANERS 3000 2 6000
1 CHIEF CHEFS 20000 1 20000
3 CHEFS 12000 3 36000
    monthly salary 145000
174000
    annual salary 0
Financial plans and projections:

Break even analysis:

A break even analysis determines at what point income equal to expenses. For our restaurant and spa
break even comes at

fixed cost 2500000

contribution 4300000.00
break even
point 0.581395349

We will have break even at 7 months.

Cost control:

1) We will maintain simple and standard form of menu, which mainly contains frequently, ordered
items.
2) We will follow some standard for quantity of items, so that wastage will be minimum
3) Inventory cost control: as our good are perishable, we will maintain inventory for not exceeding
seven days.
4) We will purchase commodities directly from whole sale market yards
5) We will vegetables and perishable goods in bulk amount from known vendors by future
contracts to minimize the margins

Budgeting plan:

As our total investment is 50 lacks, for fixed assets we will allocate 15lacks for restaurant and
10lacks for spa. We will maintain an amount of 15lacks for expenses and inventory. We have 8 lacks
in hand and bank and 2 lacks for salaries to our employees.

Particulars Amount
Fixed assets for spa 100000
Fixed assets for restaurants 150000
Expenses and inventory 150000
Cash in hand and bank 800000
Employees salary 200000
 Amount
100000

200000
Fixed assets for spa
150000 Fixed assets for
restaurants
150000 Expenses and inventory
Cash in hand and bank
Employees salary

800000

Scenarios:

Realistic:

By considering all risks and returns the projected financial statement shows a realistic sales growth
rate of 21% which is a very good indicator to sustain in the industry. As the restaurant industry is
stagnant there won’t be much volatility, so consistent maintenance of profitability is very much
possible.

BEST:

If the sales grow at a rate of more than 25%, because of unique features and word of mouth, the
profitability will go up to 20 to 25%. Which can gain good customer base and loyalty, if this trend will
continue with in four or five years we can go for expansion by opening branches at other places in
the city and we can also go for vertical integration.

Worst:

As the business failed to attract more number of customers, we will try to continue the business by
reducing the cost for a limited period of time to understand the business situation clearly with in
variable limits. If the situation still continues we will try to minimize the losses and sell of the license
and fixed assets and exit from the business with minimal loss.