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PROJECT REPORT ON CAR TAXI SERVICE IN GANDHINAGAR

Submitted to: State Bank of India, Gandhinagar.

Submitted by: Mr. Amitsinh Vihol

TABLE OF CONTENT Executive Summary Company Summary Services Market Analysis Summary Strategy and Implementation Summary Management Summary Financial Plan Appendix

Executive Summary
City Taxi is a Gandhinagar,Gujarat based company, whose mission is to provide reliable, timely, and safe cab services by using complete, in-car credit and debit card access, along with computer-aided dispatch. City Taxi will provide complete taxi cab services using the latest equipment and technology to facilitate the travel of individuals in and around the Gandhinagar area. The company's products and services show that we are an innovative, forward thinking company that recognizes the need to move with everchanging customer needs. At City Taxi, our philosophy is one that emphasizes service, and a realization that effective communication is a key component in our business. The company also realizes that, in a competitive environment, flexibility and professionalism maintain that leading edge. The company has drivers and employees that are helpful, courteous, and fully trained on the use of the computer dispatch system. As an added safety measure for both drivers and passengers, City Taxi cabs are fitted with Global Positioning Systems (GPS), which enable the cabs to be tracked or located in an emergency. All City Taxi cabs will be clean, well maintained, and inspected regularly for safety and comfort. The company's strategy is to build reputation and market share by establishing our business offering as a viable alternative to existing taxi cab services in the area. The company's goal in the next year is pursue an aggressive marketing campaign and from that, penetrate at least 65% of the market share. The company's long-term goal is be the top rated ground transportation company in Gujarat. Companies with whom City Taxi competes have weaknesses that they do not have the credit/debit card payment option, and some still use the radio dispatch system. The company has a competitive advantage, however, because our technology is unique to the taxi industry in Gujarat. The GPS will enable the company to provide timely service by giving an accurate estimated time of arrival (ETA). The credit/debit card feature will give customers convenience and privacy during the transaction period. Reliable communications are essential under all circumstances in this business. As such, City Taxi will use the mobile communication system. The company will also run a call center. 1.1 Objectives The company's goal in the next year is to pursue an aggressive marketing campaign and from that, penetrate at least 65% of the market share. The company's goal in the next two to five years is be the top rated ground transportation company in the Gujarat Area by continuously monitoring, evaluating, and following up on customer call-ins. Key components of City Taxi's initial strategy can be summarized as follows. Managerial Call center and customer service efficiency Management consulting Technology consulting Product management Continuous improvement

1.2 Mission

The mission of City Taxi is to provide reliable, timely, and safe cab services by using complete in-car credit/debit card access, along with computer aided dispatch. 1.3 Highlights Highlights of City Taxi Technology. City Taxi has a unique Global Positioning System (GPS) that pinpoints the nearest driver, thus allowing the driver to give an accurate ETA. Credit/debit card system. This system is the first of its kind in Gujarat and is convenient for both the passenger and driver because approval is given instantly. The swipe machine is located in the back seat, giving the passenger privacy. Trademarks. The company is in the process of registering the name Patriot as a trademark. Advertising. City Taxi is already in advanced discussions with GTPL Media Services to provide advertising services. Seasoned management. The company's management is highly experienced and qualified and has extensive experience in the industry. Strategic relationships. The company has, and will continue to establish, relationships with organizations that will enhance professional growth. These alliances are valuable to City Taxi because they allow us to get updates on technology, added tech support, and a strong presence in the market. Exclusive rights to software. City Taxi has the exclusive rights to the latest taxi cab software in Gujarat.

Company Summary
Legal Business Description: City Taxi was founded in Gandhinagar,Gujarat,India by Mr. ABC. The company is registered under the name Patriot, Inc. d.b.a. City Taxi. 2.1 Company Strategy The City Taxi's strategy is to saturate the market with television ads depicting the company as a premier taxi service. The company will leverage the newest in car technology to dominate the credit card segment of the market. City Taxi will dominate the market because no other company has this unique feature. The company's strategy is to build reputation and market share in our target market by establishing our business offering as a viable alternative to existing taxi cab services. City Taxi intends to get the confidence of customers and establish itself as a company that provides superior customer service by using up to date technology to provide timely and reliable services.

Balance Sheet Current Assets Cash Other Current Assets Total Current Assets (In $) 0 0 0

Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets 0 0 0

Total Assets

Current Liabilities Accounts Payable Current Borrowing Total Current Liabilities Long-term Liabilities Total Liabilities Paid-in Capital Retained Earnings Earnings Total Capital Total Capital and Liabilities Other Inputs Payment Days 2.2 Risks

(In $) 0 0 0 0 0 0 0 0 0 0

Other Current Liabilities (interest free) 0

The company recognizes that it is subject to both market and technological risks. The company's view of its risks, as well as how each is being addressed, is as follows: Lock out in industry for new cab companies . City Taxi is aware that this is an extremely difficult industry to get into. To mitigate this risk, City Taxi has established an alliance with the leading cab company in the Gujarat Taxi Association. The alliance will allow City Taxi to run under their color scheme. Acquiring insurance. City Taxi will have to acquire extensive insurance to cover all aspects of operations, but will be faced with high rates. To lessen this risk, City Taxi plans to use the relationship with Taxi Association to run under their insurance companies. Alternatively, the company plans to purchase insurance from other Insurance companies, which offer lower rates. Adequate facility. City Taxi realizes that it is difficult to locate a facility with the space required for all operations. City Taxi has found a facility with ample space for all operations. There is enough room to set up repair facilities, and there is adjacent space to store vehicles. 2.3 Value Proposition City Taxi's products and services offer the following advantages to customers: Convenience. City Taxi's products and services provide the driver and the customer with the convenience of a credit/debit card system that gives instant approval. Call Center. City Taxi's call center allows us to provide a timely service by picking up the closest vehicle when a call comes in. When a call comes in, it is put into the system, the system sends a message to dispatcher, the system then tags the closest vehicle in the zone, neighboring zone, on the way to the zone, or the dispatcher can call.

Services
City Taxi provides taxi services utilizing computer dispatch to help with timely pick up and quality customer care. The software and hardware systems used by City Taxi give customers convenience by allowing them to use credit and debit cards in the taxi. 3.1 Service Description Taxi Cab Services The taxi driver is often the first contact that a visitor has with Gandhinagar and as such, City Taxi realizes the importance of first impressions and customer care. The company's customer-oriented philosophy and its commitment to service are reflected in the careful selection of drivers and the comprehensive training program. Customers can expect the following high standards when they travel with City Taxi: Clean and tidy taxis Friendly and polite drivers Careful driving Most practical route taken Maintenance/Repair Services This division of City Taxi deals with the pure maintenance of vehicles. Drivers will be charged at discounted rates for tune-ups, wheel alignments, and other repairs. 3.2 Technology GLOBAL POSITIONING SYSTEMS. City Taxi has a unique Global Positioning System (GPS) that pinpoints the nearing driver thus allowing the driver to give an accurate estimated time of arrival. RADIO SYSTEM. Reliable communications are essential under all circumstances. City Taxi will use the softwere system design because it provides multiple levels of reliability to assure communications will be maintained under the most rigorous condition. CREDIT/DEBIT CARD SYSTEM. City Taxi will use the in-car credit/debit card system, which is a new market segment for the taxi industry in Gujarat. This involves customers using their debit cards in any City Taxi cab with approval being given instantly, eliminating the need to dial in to head office for approval numbers. By using this system, the company will be addressing the need for convenience and reliability. City Taxi also features a computer-aided dispatch system which will be represented under the Patriot name. The company is currently in the process of making Patriot a trademark. The company has also applied for a license to run a 490 narrow band frequency and voice data transmission. From the perspective of customers, the advantage of City Taxi's products and services is the high level of technology, which leads to superior customer service. In contrast to competitors, City Taxi's products and services offer convenience. The key pad and swipe machine are built into the back seat, thus giving the customer privacy. Whereas competitors have to call in a credit/debit card transaction for approval, our customers will be able to get on-the-spot approval before the driver even pulls over. 3.3 Future Services City Taxi plans to respond to market needs by following up with taxi plus (wheelchair accessible taxi vans with credit card access inside) with the next 5 years. City Taxi believes it can capture this niche and a gain in overall market share. Additional plans for next generation products and services include rent to own options for our drivers. Introduction of the company's next generation product and services is expected to be within 12 months.

Market Analysis Summary


The company believes that the major future trend in the industry will be complete credit card access for consumers. The International Taxi Livery Association (ITLA) forecasts a very steady growth for the taxi industry in the next four years. 4.1 Market Segmentation Customers and Target Markets City Taxi's focus will be on the credit card market with target customers in the low to mid income range in the Gandhinagar area. The target customers are motivated to use our services over that of competitors because of the convenience and quality associated with our services. Customer Buying Criteria We believe our customers choose our cab service based on the following criteria: Performance. We work with one goal in mind: to get customers where they want to go, when they want to go, promptly, efficiently, comfortably, and safely. Superior Service. Timely pick up, private usage, and customer care. Quality. This involves providing courteous service in clean, well-maintained cars. Convenience. This involves the credit/debit card features.

Market Analysis
2009 Potential Customers Growth 2010 2011 2012 2013 CAGR 200,000 250,000 312,500 390,625 488,281 25.00% 100,000 110,000 121,000 133,100 146,410 10.00% 0 0 0 0 0 0.00%

Credit Card Market 25% Cash Customers Other Total 10% 0%

20.60% 300,000 360,000 433,500 523,725 634,691 20.60%

4.2 Service Business Analysis Market 1-Taxi Cabs This category covers establishments engaged primarily in furnishing passenger transportation by automobiles not operated on regular schedules or between fixed terminals. Taxi cab fleet owners and organizations are included, regardless of whether drivers are hired, rent their cabs, or are otherwise compensated. Organization and Structure Most taxi companies followed a similar organizational pattern. Managers, sometimes the company owners' ran the business, hired drivers, and performed other administrative duties. Dispatchers took calls and assigned cabs to passenger locations. The position of dispatcher once represented a promotion awarded to experienced cab drivers, whose familiarity with the city best qualified them for the job. However, the increase in computer-based dispatching in the early 2010's prompted cab companies to favor computer skills over specialized knowledge of local geography when filing the dispatcher position. Regulation of the Indian. taxi industry varied from city to city. While almost all cities had some form of licensing requirements, larger urban areas had the strictest regulations. Gandhinagar regulations focused on fares charged to customers, with rates assigned to designated zones of the city. Current Conditions In 2012, 6000 taxi fleets, consisting of 244,000 cars, were operating in the India. On a national level, in the early 2000's, taxi's made approximately 2 billion passenger trips a year. Most taxi fleets were small, family-owned businesses or individual partnerships; only 5% were corporations. Almost all operated within a single municipality, and more than half of all taxi companies had fewer than 10 vehicles. In rural areas, companies tended to be extremely small, with 1 to 3 cars available for customers. In cities of 100,000 people, the average fleet size was 20 cars. In urban centers of 200,000 or more people, cab companies retained hundreds of cars and carried more passengers than the multitude of smaller companies combined. Research and Technology Although the taxi cab industry was not regarded as demanding in a high degree of technology, several innovations have changed the way businesses operate. Computerized dispatching--in which cabs were tracked by computer and dispatch instructions appeared only to the cab assigned to a call--allowed more efficient assignment of cabs to passengers. Computerization also helped remedy the problem of "fare stealing," in which one driver intercepts a message meant for another and picks up the first driver's fare. Another development likely to change the industry's focus involved its use of certain radio frequencies. In the late 1980's and early 1990's, with investment in cellular and digital communications skyrocketing, taxi cab companies found themselves in possession of a valuable asset in the form of the broadcast

frequencies granted them by the Federal Communications Commission. During this time, the FCC, allowing them only two frequencies in any one area, heavily restricted the cellular telephone industry's use of the airwaves. By the mid-1990's, some cab-related services, such as New Jersey's dispatcher Fleet Call, were in a strong position to become players in the burgeoning telecommunications industry. 4.2.1 Competition and Buying Patterns Competitive threats come from existing taxi companies in the Gandhinagar area. Their weaknesses are, however, that they do not have the credit/debit card payment option, and some still use the radio dispatch system. Transportation, Inc. has computer-aided dispatch but no credit card processing capabilities. Taxi Cabs. City Taxi's competitors include existing taxi cab companies that have been operating in the Gandhinagar area. City Taxi's competitive advantage is our cutting edge technology which is unique to the taxi industry in Gandhinagar. The GPS will enable City Taxi to provide timely service by giving an accurate ETA. The credit/debit card feature will give our customers convenience and privacy during the transaction period. Maintenance and Repair Services. City Taxi's competitors include general maintenance and repair shops in the area. Some of these operations do not have the capacity to handle a large amount of vehicles. While others may have the capacity, their operations are run in a primitive manner, and City Taxi intends to capitalize on that. City Taxi's competitive advantages include the availability of space, operations management, and skilled employees.

Strategy and Implementation Summary


Sales Strategy At City Taxi, the sales process is the same for each of City Taxi's two areas: taxi cab services and maintenance and repair services. The company intends to establish its presence online by developing a website from which sales will be generated. The taxi service association regulates pricing for taxi cab services. Sales Forecast
2014 Sales All services Other Total Sales $200,000 $1,50,0000 0 0 $2,20,000 0 2015 2015

0 $2,200,00 $2000,00 $1,500,000 0

Direct Cost of Sales All services Other Subtotal Direct Cost of Sales

2014

2015

2016

$65,000 $125,000 $10,0000 0 0 0

$65,000 $125,000 $100,000

5.1 Marketing Strategy Marketing Strategy City Taxi markets its products and services as solutions to transportation needs in the city of Gandhinagar. Other target markets include customers in the low to mid income range. Direct mailings and television advertising will be the company's main marketing channels. These channels ensure that target customers are reached repeatedly and effectively. The company will monitor its market position through constant tracking by Value Pack and GTPL Media, Inc. GTPL Media Services - The proposed advertising package, titled "The Championship," will yield: Own 4-6 TV channels in Gujarat. Operate their cable service in all area of Gujarat. This is so wide network in the Gujarat. Ads on the TV guide channel 5.1.1 Marketing Programs City Taxi plans to communicate through direct mail and television advertising to generate sales. GTPL MEDIA Services will spearhead the marketing campaign. The key message associated with our products and services is cleaner, efficient, flexible, and convenient taxi cabs. Additional PlansThe Company also has additional promotional plans which are diverse and include a range of marketing communications described below: Trade shows: company representatives will attend and participate in several trade shows to keep up with changes in the industry. Print advertising and article publishing : the company's print advertising program will include

advertisements in local newspapers and local journal publications. City Taxi will feature articles on services provided in the above mentioned publications. 5.2 Strategic Alliances The company has strategic alliances with safezone Systems, king communication and Commercial Electronic Services. These alliances are valuable to City Taxi because they allow the company to get updates on technology and added tech support, and they are valuable to the ally firms because City Taxi is a growing customer. All agreements come with a stipulation that if new technology becomes available, City Taxi will be notified and provided with the technology to expand on current technology, helping us maintain a competitive edge. Details of the strategic relationships that City Taxi has are given below. International Taxi cab and Livery Association (ITLA) . ITLA is a non-profit association that represents the private, for-profit ground transpiration industry. City Taxi will use the resources made available by ITLA to get the latest industry trends and trade show information. ITLA conducts a variety of research projects on industry issues and the results of these studies are summarized in ITLA publications and made available to association members at a reduced fee. Rockwell International. Rockwell International has been brought in to help develop the call center and aid with the development of superior customer service techniques. City Taxi will work with Rockwell International in the setup of a cost efficient but productive call center. GTPL Media, Inc. Currently, City Taxi is under a verbal agreement with TCI Media, Inc. to market its product and services through various cable networks. Safezone Systems. Surfside Systems will be the company's supplier of dispatch software and CAD software. King Communications. King Communications will be the company's supplier of mobile data and in-car credit/debit card processing equipment hardware. King Communications has made a commitment and guarantee that they will provide interface to Surfside Systems. Commercial Electronics Services (CES). CES is a supplier of advanced technology systems used in taxi cabs. The relationship will allow City Taxi to get the latest technology and the benefit of their excellent tech support. All systems are connected to their offices and given a serial number, that way, they are able to locate the system, evaluate the problem, and fix it right away. Tirupati Cab Body Shop. The owner of Tirupati Cab also owns a body shop. City Taxi will seek to establish a relationship with it for body work and towing services.

Management Summary
Organization The company's management philosophy is based on responsibility and mutual respect. City Taxi has an environment and structure that encourages productivity and respect for customers and fellow employees. The City Taxi team is organized into two groups: 1. Taxi Cabs. The taxi cabs division will consist of the fleet of taxis, driver owned and company owned, the call center, and administration. Overall, City Taxi will have approximately 20 employees in this division. The management of all daily operations within City Taxi will be handled in this division. Mr. ABC, the CEO, will be responsible for the purchase of vehicles and dealing with vendors and suppliers. There will be 10 to 20 employees in the call center, three supervisors, three dispatchers, an office manager, a data entry clerk, and an employee responsible for accounts receivables/payables. 2. Maintenance and Repair Services. This division will deal with the maintenance of vehicles. Drivers will be charged at discounted rates for tune-ups, wheel alignments, and other repairs. This division will be staffed with seven employees to begin with. Officers and Key Employees City Taxi's management is highly experienced and qualified. Key members of City Taxi's management teams, their backgrounds, and responsibilities are as follows. Mr. ABC, President and CEO. Mr. PQR, Senior Vice President - Operations. Ms. XYZ, Call Center Supervisor.

Personnel Plan
2014 Taxi Cabs & Administrative Maintenance & Repair Total People 2015 2016

$108,696 $365,217 $395,652 $108,695 $156,522 $169,565 8 17 20

Total Payroll

$217,391 $521,739 $565,217

Financial Plan
The company is seeking $2.5 milionns of financing to fund the acquisition of Tirupati Cab Association and its initial operations. This funding will cover the purchase of Tirupati Cab, marketing, purchase of extra vehicles, software, and hardware. 7.1 Important Assumptions The table below shows the key assumptions for City Taxi.

General Assumptions
2014 Plan Month Current Interest Rate Long-term Interest Rate Tax Rate Other 1 10.00% 10.00% 25.42% 0 2015 2 10.00% 10.00% 25.00% 0 2016 3 10.00% 10.00% 25.42% 0

7.2 Break-even Analysis City Taxi's Break-even Analysis indicates that the firm has a strong balance of costs and sales. The company estimates a monthly break-even sales volume of approximately $43,000, which will be reached by Fiscal Year (FY) 2015.

Break-even Analysis

Monthly Revenue Break-even

$43,333

Assumptions:

Average Percent Variable Cost Estimated Monthly Fixed Cost

32% $29,250

7.3 Projected Profit and Loss City Taxi is in the early stage of development, thus initial projections have only been made on accounts that are believed to most drive the income statement.

Pro Forma Profit and Loss


2014 Sales Direct Cost of Sales Other Total Cost of Sales $200,000 $65,000 $5,000 $70,000 2015 $1,500,000 $125,000 $10,000 $135,000 2016 $2,200,000 $100,000 $15,000 $115,000

Gross Margin Gross Margin %

$130,000 65.00%

$1,365,000 91.00%

$2,085,000 94.77%

Expenses Payroll Sales and Marketing and Other Expenses Depreciation Research & Development Utilities Insurance Payroll Taxes Other $217,391 $64,000 $14,997 $15,000 $2,000 $5,000 $32,609 $0 $521,739 $164,000 $17,500 $25,000 $2,000 $5,000 $78,261 $0 $565,217 $214,000 $17,500 $40,000 $2,000 $5,000 $84,783 $0

Total Operating Expenses

$350,997

$813,500

$928,500

Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred

($220,997) ($206,000) $3,337 $0

$551,500 $569,000 $2,841 $137,165

$1,156,500 $1,174,000 $2,084 $293,414

Net Profit Net Profit/Sales

($224,334) -112.17%

$411,494 27.43%

$861,002 39.14%

7.4 Projected Cash Flow


The table below outlines the company's cash flows for FY 2014-2016. The required $2.5 million will be spent to acquire Tirupati Cab's operations ($1.25 million), as well as to purchase additional property ($250,000) and equipment ($200,000). An additional $500,000 will be spent on other short-term assets.

Pro Forma Cash Flow


2014 Cash Received 2015 2016

Cash from Operations Cash Sales Subtotal Cash from Operations $200,000 $200,000 $1,500,000 $1,500,000 $2,200,000 $2,200,000

Additional Cash Received Sales Tax, VAT, HST/GST Received New Current Borrowing New Other Liabilities (interest-free) New Long-term Liabilities Sales of Other Current Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received $0 $0 $0 $0 $0 $0 $2,500,000 $2,700,000 $0 $0 $0 $0 $0 $0 $0 $1,500,000 $0 $0 $0 $0 $0 $0 $0 $2,200,000

Expenditures

2014

2015

2016

Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations $217,391 $200,095 $417,486 $521,739 $519,573 $1,041,312 $565,217 $739,266 $1,304,483

Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out Principal Repayment of Current Borrowing Other Liabilities Principal Repayment Long-term Liabilities Principal Repayment Purchase Other Current Assets Purchase Long-term Assets Dividends Subtotal Cash Spent $0 $3,000 $0 $0 $500,000 $1,700,000 $0 $2,620,486 $0 $3,000 $0 $4,181 $0 $0 $0 $1,048,493 $0 $3,000 $0 $4,951 $0 $0 $0 $1,312,434

Net Cash Flow Cash Balance

$79,514 $124,514

$451,507 $576,021

$887,566 $1,463,587

7.5 Projected Balance Sheet The table below provides City Taxi's actual and projected balance sheets for 2014-2016.

Pro Forma Balance Sheet


2014 Assets 2015 2016

Current Assets Cash Other Current Assets Total Current Assets $124,514 $513,400 $576,021 $1,463,587 $513,400 $513,400

$637,914 $1,089,421 $1,976,987

Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets $1,775,000 $1,775,000 $1,775,000 $24,997 $42,497 $59,997

$1,750,003 $1,732,503 $1,715,003 $2,387,917 $2,821,924 $3,691,990

Liabilities and Capital

2014

2015

2016

Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities $15,451 $7,000 $25,400 $47,851 $45,145 $4,000 $25,400 $74,545 $62,160 $1,000 $25,400 $88,560

Long-term Liabilities Total Liabilities

$25,000 $72,851

$20,819 $95,364

$15,868 $104,428

Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital

$2,537,000 $2,537,000 $2,537,000 $2,400 ($221,934) ($224,334) $411,494 $189,560 $861,002

$2,315,066 $2,726,560 $3,587,562 $2,387,917 $2,821,924 $3,691,990

Net Worth

$2,315,066 $2,726,560 $3,587,562

7.6 Business Ratios The following table contains important business ratios from the taxi cab industry, as determined by the Standard Industry Classification (SIC) Index, Taxi Cabs.

Ratio Analysis
2014 Sales Growth 100.00% 2015 650.00% 2016 Industry Profile 46.67% 0.50%

Percent of Total Assets Other Current Assets Total Current Assets Long-term Assets Total Assets 21.50% 26.71% 73.29% 100.00% 18.19% 38.61% 61.39% 100.00% 13.91% 53.55% 46.45% 100.00% 45.90% 63.00% 37.00% 100.00%

Current Liabilities Long-term Liabilities Total Liabilities

2.00% 1.05% 3.05%

2.64% 0.74% 3.38%

2.40% 0.43% 2.83%

29.10% 27.00% 56.10%

Net Worth

96.95%

96.62%

97.17%

43.90%

Percent of Sales Sales Gross Margin Selling, General & Administrative Expenses Advertising Expenses Profit Before Interest and Taxes 100.00% 65.00% 177.25% 25.00% -110.50% 100.00% 91.00% 63.59% 10.00% 36.77% 100.00% 94.77% 55.44% 9.09% 52.57% 100.00% 82.50% 58.00% 1.00% 2.60%

Main Ratios Current Quick Total Debt to Total Assets Pre-tax Return on Net Worth Pre-tax Return on Assets 13.33 13.33 3.05% -9.69% -9.39% 14.61 14.61 3.38% 20.12% 19.44% 22.32 22.32 2.83% 32.18% 31.27% 1.58 1.22 56.10% 3.60% 8.10%

Additional Ratios Net Profit Margin Return on Equity

2010 -112.17% -9.69%

2011 27.43% 15.09%

2012 39.14% 24.00% n.a n.a

Activity Ratios Accounts Payable Turnover Payment Days Total Asset Turnover 12.42 31 0.08 12.17 20 0.53 12.17 26 0.60 n.a n.a n.a

Debt Ratios Debt to Net Worth Current Liab. to Liab. 0.03 0.66 0.03 0.78 0.03 0.85 n.a n.a

Liquidity Ratios Net Working Capital Interest Coverage $590,063 -66.22 $1,014,876 194.13 $1,888,427 554.85 n.a n.a

Additional Ratios Assets to Sales Current Debt/Total Assets 11.94 2% 1.88 3% 1.68 2% n.a n.a

Acid Test Sales/Net Worth Dividend Payout

13.33 0.09 0.00

14.61 0.55 0.00

22.32n.a 0.61n.a 0.00n.a

Appendix
Sales Forecast Jan Sales All services Other Total Sales 0% $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

$16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667

Direct Cost of Sales All services Other


Subtotal Direct Cost of

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

$5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Sales

$5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417

Personnel Plan Jan Taxi Cabs & Administrative


Maintenance & Repair

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

0% $9,058 $9,058 $9,058 $9,058 $9,058 $9,058 $9,058 $9,058 $9,058 $9,058 $9,058 $9,058 0% $9,057 $9,058 $9,058 $9,058 $9,058 $9,058 $9,058 $9,058 $9,058 $9,058 $9,058 $9,058 8 8 8 8 8 8 8 8 8 8 8 8

Total People

Total Payroll

$18,115 $18,116 $18,116 $18,116 $18,116 $18,116 $18,116 $18,116 $18,116 $18,116 $18,116 $18,116

General Assumptions

Jan Plan Month Current Interest Rate Long-term Interest Rate Tax Rate Other 1

Feb 2

Mar 3

Apr 4

May 5

Jun 6

Jul 7

Aug 8

Sep 9

Oct 10

Nov 11

Dec 12

10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 30.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 0 0 0 0 0 0 0 0 0 0 0 0

Pro Forma Profit and Loss

Jan Sales Direct Cost of Sales Other


Total Cost of

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

$16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $5,417 $417 $5,833 $5,417 $417 $5,833 $5,417 $417 $5,833 $5,417 $417 $5,833 $5,417 $417 $5,833 $5,417 $417 $5,833 $5,417 $417 $5,833 $5,417 $417 $5,833 $5,417 $417 $5,833 $5,417 $417 $5,833 $5,417 $5,417 $417 $417

Sales

$5,833 $5,833

Gross Margin Gross Margin %

$10,833 $10,833 $10,833 65.00% 65.00% 65.00%

$10,833 65.00%

$10,833 65.00%

$10,833 65.00%

$10,833 65.00%

$10,833 $10,833 $10,833 $10,833 $10,833 65.00% 65.00% 65.00% 65.00% 65.00%

Expenses Payroll Sales and Marketing and Other Expenses Depreciation Research & Development Utilities Insurance Payroll Taxes 15% Other $18,115 $18,116 $18,116 $18,116 $18,116 $18,116 $18,116 $18,116 $18,116 $18,116 $18,116 $18,116

$5,333

$5,333 $5,333

$5,333

$5,333

$5,333

$5,333

$5,333

$5,333

$5,333

$5,333 $5,333

$625 $1,250 $167 $417 $2,717 $0

$625

$625

$1,458 $1,250 $167 $417 $2,717 $0

$1,458 $1,250 $167 $417 $2,717 $0

$1,458 $1,250 $167 $417 $2,717 $0

$1,458 $1,250 $167 $417 $2,717 $0

$1,458 $1,250 $167 $417 $2,717 $0

$1,458 $1,250 $167 $417 $2,717 $0

$1,458 $1,250 $167 $417 $2,717 $0

$1,458 $1,458 $1,250 $1,250 $167 $417 $167 $417

$1,250 $1,250 $167 $417 $167 $417

$2,717 $2,717 $0 $0

$2,717 $2,717 $0 $0

Total Operating Expenses

$28,624 $28,625 $28,625

$29,458

$29,458

$29,458

$29,458

$29,458 $29,458 $29,458 $29,458 $29,458

Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred

($17,791) ($17,792) ($17,792) ($18,625) ($18,625) ($18,625) ($18,625) ($18,625) ($18,625) ($18,625) ($18,625) ($18,625) ($17,166) ($17,167) ($17,167) ($17,167) ($17,167) ($17,167) ($17,167) ($17,167) ($17,167) ($17,167) ($17,167) ($17,167) $290 $0 $288 $0 $285 $0 $283 $0 $281 $0 $279 $0 $277 $0 $275 $0 $273 $0 $271 $0 $269 $0 $267 $0

Net Profit Net Profit/Sales

($18,080) ($18,079) ($18,077) ($18,908) ($18,906) ($18,904) ($18,902) ($18,900) ($18,898) ($18,896) ($18,893) ($18,891) -108.48% -108.48% -108.46% -113.45% -113.44% -113.42% -113.41% -113.40% -113.39% -113.37% -113.36% -113.35%

Pro Forma Cash Flow Jan Cash Received Cash from Operations Cash Sales Subtotal Cash from Operations FebMar Apr May Jun Jul Aug Sep Oct Nov Dec

$16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667

Additional Cash Received Sales Tax, VAT, HST/GST Received New Current Borrowing New Other Liabilities (interestfree) New Longterm Liabilities Sales of Other Current Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received

0.00%

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0 $2,500,000

$0

$0

$0

$0

$0

$0

$0

$0

$0

$16,667 $16,667 $2,516,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667

Expenditures

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations $18,115 $18,116 $24,134 $16,007 $18,116 $18,116 $18,116 $18,116 $18,116 $18,116 $18,116 $18,116 $18,116 $18,116 $16,005 $16,003 $16,001 $15,999 $15,996 $15,994 $15,992 $15,990 $15,988 $15,986

$42,249 $34,123

$34,121 $34,119 $34,117 $34,115 $34,112 $34,110 $34,108 $34,106 $34,104 $34,102

Additional Cash Spent Sales Tax, VAT, $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

HST/GST Paid Out Principal


Repayment

of Current
Borrowing

$250

$250

$250

$250

$250

$250

$250

$250

$250

$250

$250

$250

Other Liabilities Principal


Repayment

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Long-term

Liabilities Principal
Repayment

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Purchase Other Current Assets Purchase


Long-term

$0

$0 $500,000

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0 $0

$0 $1,700,000 $0 $0

$0 $0

$0 $0

$0 $0

$0 $0

$0 $0

$0 $0

$0 $0

$0 $0

$0 $0

Assets Dividends Subtotal


Cash Spent

$42,499 $34,373 $2,234,371 $34,369 $34,367 $34,365 $34,362 $34,360 $34,358 $34,356 $34,354 $34,352

Net Cash Flow Cash Balance

($25,832) ($17,706) $282,296 ($17,702) ($17,700) ($17,698) ($17,696) ($17,694) ($17,692) ($17,690) ($17,687) ($17,685)

$19,168 $1,462 $283,758 $266,056 $248,356 $230,658 $212,962 $195,268 $177,577 $159,887 $142,200 $124,514

Pro Forma Balance Sheet Jan Assets Starting Balance s Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Current Assets Cash Other Current Assets Total Current Assets $45,000 $19,168 $1,462 $283,758 $266,056 $248,356 $230,658 $212,962 $195,268 $177,577 $159,887 $142,200 $124,514 $13,400 $13,400 $13,400 $513,400 $513,400 $513,400 $513,400 $513,400 $513,400 $513,400 $513,400 $513,400 $513,400

$58,400 $32,568 $14,862 $797,158 $779,456 $761,756 $744,058 $726,362 $708,668 $690,977 $673,287 $655,600 $637,914

Long-term Assets Long-term $75,000 $75,000 $75,000 $1,775,00 $1,775,00 $1,775,00 $1,775,00 $1,775,00 $1,775,00 $1,775,00 $1,775,00 $1,775,00 $1,775,00 Assets 0 0 0 0 0 0 0 0 0 0

Accumulate d Depreciatio $10,000 $10,625 $11,250 $11,875 $13,333 $14,791 $16,249 $17,707 $19,165 $20,623 $22,081 $23,539 $24,997 n Total Long$1,763,12 $1,761,66 $1,760,20 $1,758,75 $1,757,29 $1,755,83 $1,754,37 $1,752,91 $1,751,46 $1,750,00 term Assets $65,000 $64,375 $63,750 5 7 9 1 3 5 7 9 1 3 Total Assets $123,40 $96,943 $78,612 $2,560,28 $2,541,12 $2,521,96 $2,502,80 $2,483,65 $2,464,50 $2,445,35 $2,426,20 $2,407,06 $2,387,91 0 3 3 5 9 5 3 4 6 1 7

Liabilities and Capital

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Current Liabilities Accounts Payable $23,600 $15,473 $15,471 $15,469 $15,467 $15,465 $15,463 $15,461 $15,459 $15,457 $15,455 $15,453 $15,451

Current Borrowing $10,000 Other Current Liabilities Subtotal Current Liabilities

$9,750 $9,500

$9,250

$9,000

$8,750

$8,500

$8,250

$8,000

$7,750

$7,500

$7,250

$7,000

$25,400 $25,400 $25,400 $25,400 $25,400 $25,400 $25,400 $25,400 $25,400 $25,400 $25,400 $25,400 $25,400

$59,000 $50,623 $50,371 $50,119 $49,867 $49,615 $49,363 $49,111 $48,859 $48,607 $48,355 $48,103 $47,851

Long-term $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 Liabilities Total Liabilities $84,000 $75,623 $75,371 $75,119 $74,867 $74,615 $74,363 $74,111 $73,859 $73,607 $73,355 $73,103 $72,851

Paid-in Capital Retained Earnings Earnings Total Capital

$37,000 $37,000 $37,000 $2,537,00 $2,537,00 $2,537,00 $2,537,00 $2,537,00 $2,537,00 $2,537,00 $2,537,00 $2,537,00 $2,537,00 0 0 0 0 0 0 0 0 0 0 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400

$0

($18,08 ($36,15 0) 9) ($54,237) ($73,145) ($92,051)

($110,954 ($129,856 ($148,756 ($167,654 ($186,549 ($205,443 ($224,334 ) ) ) ) ) ) )

$39,400 $21,320 $3,241 $2,485,16 $2,466,25 $2,447,34 $2,428,44 $2,409,54 $2,390,64 $2,371,74 $2,352,85 $2,333,95 $2,315,06 3 5 9 6 4 4 6 1 7 6

Total $123,40 $2,560,28 $2,541,12 $2,521,96 $2,502,80 $2,483,65 $2,464,50 $2,445,35 $2,426,20 $2,407,06 $2,387,91 Liabilities 0 $96,943 $78,612 3 3 5 9 5 3 4 6 1 7 and Capital

Net Worth $39,400 $21,320 $3,241 $2,485,16 $2,466,25 $2,447,34 $2,428,44 $2,409,54 $2,390,64 $2,371,74 $2,352,85 $2,333,95 $2,315,06 3 5 9 6 4 4 6 1 7 6