EXCEL INTERNATIONAL

ANNA University

Introduction

Name of the Business The Learning Tree School Pvt Ltd

Address: Near Rajhans CircleAirport RoadPune-422002

Nature of Business: Education and Research Institute

Capital Requirement INR 100 crores

Form of ownership A Private Limited Company

Mission Be the best, strive to learn and make your field an art.

Vision Aspiring the future generation to innovation

USP

• Digital teaching along with Smart Classes

• Affilations from Havard Business School

• Research based institution which encourages young minds to innovate

• Attracts metro city students particularly those aspiring for Flames and Symnbosis

• Education from pre primary to higher secondary

• Personalized Teaching

Organizational hierarchy

BOD headed by CEO

Board of School Principals

Head of Departments

Faculties

Student Representatives Board

Roles and Responsibilities of

members of organization

• Responsibility of board

• Responsibility of the Director and faculties

• Responsibility of children

• Responsibility of parents/Guardians

Industry Analysis

• 50% of India's population is the youth.

• This means that the Indian education sector is huge with a population of 1.13 billion.

• The private education industry is estimated to be between 20,000–25,000 crores.

• There are about 1,500 management institutes, 3,500 engineering institutes, and 1,200 medical colleges in the country.

Marketing Plan:

• The school will advertise in prominent radios like:

▫ My FM

▫ Radio City

▫ Radio Mirchi

▫ Radio One

▫ Red FM

• The school will advertise in Newspapers like:

▫ Education Times

▫ Hindu

▫ The Indian Express

Marketing Newspaper cm page rate/sq cm Circulation cost

Education Times 20x20 any page 1850 740000

(Mumbai+Pune+Nagpur+Ahmedabad+Baroda)

Hindu 20x20 front page 805 315350 322000

(Andhra Pradesh)

The Indian Express 20x20 back page 909252 506000

(Delhi & Kolkata)

1568000

Marketing Radio Pune per 10 sec reach frequency no. of hrs days length cost

My FM 500 420000 4/hr 6/day 5/week 30sec 90000

Radio City 400 434000 4/hr 6/day 5/week 30sec 72000

Radio Mirchi 700 719000 4/hr 6/day 5/week 30sec 126000

Radio One 350 396000 4/hr 6/day 5/week 30sec 63000

Red FM 350 395000 4/hr 6/day 5/week 30sec 63000

Total 414000

Assessment of risk

One of a kind

Foreign affiliations

Offers research Opportunities

No international Requirements

Training and internship

Teaching and brainstorming

By bests in respective fields

Huge capital requirement

Heavy working capital

Managing faculties

Cross cultural challenges

Increasing demand

More practical approach

Mirror behavior

Parents want best for their

Children

Fascination with foreign

Universities

Concept does not click

Takeover by a established Institution

Children not ready to adopt

Financial PlanFINANCIAL STATEMENTS

1 COST OF PROJECT

2 PROJECTED PROFIT AND LOSS ACCOUNTS

3 PROJECTED BALANCE SHEETS

4 PROJECTED CASH FLOW STATEMENT

5 PROJECTED D.S.C.R AND PROFITABILITY STATEMENT

6 SCHEDULES TO P & L & BALANCE SHEETS

7 BREAK EVEN ANALYSIS

8 CMA DATA

9 ANNEXURE 1

10 DETAILED COSTS RELATED TO PROJECT

11 MARKETING COSTS

11 CONTINGENCY PLAN

Excel International

PROJECTED PROFIT AND LOSS ACCOUNT FOR THE YEARS…

(Rs. in Crores)

Years 2016-17 2017-18 2018-19

A INCOME (Refer Page 14)

I School Fees 23.59 29.52 34.13

II Other Income 0.50 0.70 1.00

Total Income 24.09 30.22 35.13

B OPERATIVE EXPENSES

I Salaries (Refer Page 14) 0.96 1.05 1.16

II Administrative Expenses (Refer Page 15) 2.31 2.42 2.54

III Depreciation (Refer Page 16) 6.67 5.97 5.32

TOTAL 9.93 9.44 9.02

C Operating Profit Before Int (A-C) 14.15 20.78 26.11

D Interest on Term Loan 0.74 0.44 0.36

E Operating Profit Before Tax 13.41 20.34 25.75

F Provision for Tax 4.14 6.29 7.96

G Profit After Tax 9.27 14.06 17.79

H Retained Profit 9.27 14.06 17.79

I Balance Transferred From P & L A/C 0.00 9.27 23.32

J Profit Carried to Balance-Sheet 9.27 23.32 41.11

K Depreciation added back 6.67 5.97 5.32

L Net Cash Accruals 15.94 20.02 23.11

Excel International

PROJECTED BALANCE SHEET AS ON 31st March....

Years 2014-15 2016-17 2017-18 2018-19

LIABILITIES :

Equity Share Capital 60.00 60.00 60.00 60.00

Profit & Loss A/c 0.00 9.27 23.32 41.11

Shareholders' Fund 60.00 69.27 83.32 101.11

Secured Loans

Term Loan 40.00 39.65 39.05 38.45

Unsecured Loans

Deposits from Directors/Shareholders 0.00 0.00 0.00 0.00

Other Non Current Liabilities(Student Deposit) 0.00 8.67 11.11 12.70

Current Liabilities

Deposit from Students Refundable 0.00 0.17 0.17 0.17

Other current Liabilities 0.00 0.00 0.01 0.01

Provision for Taxation 0.00 4.14 6.29 7.96

TOTAL LIABILITIES 100.00 121.90 139.94 160.40

A S S E T S

Gross Fixed Assets 40.15 80.69 80.69 80.69

Less : Depreciation 0.00 6.67 12.64 17.96

Net Fixed Assets 40.15 74.02 68.05 62.73

Capital Work in Progress 40.81 0.00 0.00 0.00

Non Current Investments 0.00 43.00 64.50 88.50

Current Assets

Cash & Bank Balance 18.54 0.24 0.60 0.72

Electricity Deposit 0.50 0.50 0.50 0.50

Advance Tax 0.00 4.14 6.29 7.96

Other Current Assets 0.00 0.00 0.00 0.00

Total Current Assets 19.04 4.89 7.39 9.17

TOTAL ASSETS 100.00 121.90 139.94 160.40

Diff. 0.00 0.00 0.00 0.00

C.R. N.A. N.A. N.A. N.A.

TOL / TNW 0.67 0.76 0.68 0.59

D:E 0.67 0.57 0.47 0.38

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A. PROJECTED REVENUE :

PARTICULARS 2016-17 2017-18 2017-18

No. Of Students per Year 1,638 2,050 2,370

School Fees Per Month per Student 12,000 12,000 12,000

Months 12 12 12

I Total Receipts from School Fees 23.59 29.52 34.13

II Interest from Investments 0.50 0.70 1.00

TOTAL ANNUAL RECEIPTS (A) 24.09 30.22 35.13

B. OPERATING EXPENSES

I SALARIES AND PAYMENTS TO STAFF

Designation Nos. Salary p.m Total / Month

Rs. (In Crores)

Teaching Staff (Annexure 1) 63 0.2844000

Caretaker 15 20,000 0.0300000

Acccountant 3 40,000 0.0120000

Peon 24 7,000 0.0168000

Security Guards 10 6,000 0.0060000

Sweepers 12 3,000 0.0036000

Kitchen Staff 15 7,500 0.0112500

Total Monthly Salary 0.0796500

Total Salary for the 1st year 0.9558000

Rise in Salaries in next years 0.1000000

II ADMINISTRATIVE EXPENSESPer Annum Basis (Amount in Rs.)

Annual (In Crores)

Electricity Power Cost for Rooms (Bimonthly) 0.5000

(Total rooms-102)

Other Electricity Power Cost (Lumpsum) 0.0072

(Lift, Tubewell & Common Lights etc.)

Bus Service Outsourced Contract Cost 1.1500

Stationary & Ptg. Expenses 0.0500

Telephone & Postage Expenses 0.0500

Misc. Office & Administrative Exps. 0.1500

Advertisement Expenses 0.1982

Repairs & Maintanance 0.0500

(Buildings,Garden,Lift Sports complexs)

Muncipality Tax 0.1500

TOTAL ADMINISTRAIVE EXPENSES 2.3054

Rise in Admin. expenses in next years 0.0500

III Particulars Amount % rise in exps.

Total Salary for the 1st year 0.9558 0.1000

Total Administraive Expenses 2.3054 0.0500

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Teachers Salary

Particulars No. Of teachers Salary per Month Total

Junior Classes 18 35,000 6,30,000

Primary Classes 18 40,000 7,20,000

Secondary Classes 15 50,000 7,50,000

Higher Secondary Classes 12 62,000 7,44,000

Total 28,44,000

Students Deposit Schedule

Year Deposit/Student No. Of students Additional

Students Additional

Deposit Total

2015-16 55000 1,638 1,638 900,90,000 900,90,000

2016-17 55000 2,050 412 226,60,000 1127,50,000

2017-18 55000 2,370 320 176,00,000 1303,50,000

Total 1303,50,000

BUS Cost Estimates

No. Of Students Average Distance K.M Cost Per K.M Total Cost

820 12 1.50 76,75,200

820 6 1.50 38,37,600

Total Average Cost 115,12,800

Land(PUNE) 20 Acres

Basic Cost 160000000

Stamp Duty 5% + 1% 9600000 1696,00,000.00

Plan Materials Required

Particulars Building 1 Building 2 Building 3Total

RoomsBags of 50 kg Sand CFT

Stone Agg. 10mm

Stone Agg. 20mm

Bricks Reqd Reinforced Steel

Classrooms 90 43700 126360 19440 17820 1557360 43200

Staffroom 1 1 1 3 1173 4212 648 792 69216 1920

Computer Labs 1 1 2 4 1564 5616 864 792 69216 1920

Washrooms 8 8 10 26 10166 36504 5616 5148 449904 12480

Labs 0 3 3 6 1173 2808 432 396 34608 2050

Play Area 1 1 1 3 782 2808 432 792 69216 1920

Library 0 0 1 1 782 2808 432 792 69216 1920

Total 59340 181116 27864 26532 2318736 65410

Actual Requirement 296700 905580 139320 132660 11593680 327050

Rate 200 70 250 380 6.2 44.12

Amt. 59340000 63390600 34830000 50410800 71880816 14429446

Corridors, Staircase, terrace, flooring, finishing

29670000 31695300 17415000 25205400 35940408 7214723

Total Cost89010000

95085900 52245000 75616200 107821224 21644169

441422493

Class Rooms

Particulars Buliding 1 Bulding 2 Building 3

Sections 16 13 25

Adminitration Offive 1 1 1

CC Hall 3 3 3

Medical Room 1 1 1

Changing Room 2 2 2

Research 0 4 5

Principal's Office 0 1 0

Director's Office 0 0..

Extra 2 0 0

Total 25 25 37

Contingency Plan

In case the loan of 40 Crores doesnt get approved.

The project will apply for a loan of lesser amount (10 Crore) by way of mortgage of land with the Equity share capital being the same @ 60 crores

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Cost of the Project:

(Rs. in Crores)

Proposed

Description Capital Expenditure

1 Land & site development 16.96

Total (A) 16.96

2 Buildings & Site Development :

3 School Buildings 30.15

Common Hall 1.29

Canteen 1.30

Parking Lot 0.64

Electrification 1.50

Water System 1.20

Basket ball Court 0.18

Athletics track -

Football Feild 1.00

Cricket Ground 1.00

Computer Lab 0.19

Doors Windows and Painting 0.48

Equipments 0.50

Labour 9.36

Total (B) 48.79

3 Furnitures 3.00

4 Working capital -

Total C) 3.00

Total Capital Expenditure (A+B+C) 68.75

5 Prel. & Pre-op. Exps. 1.25

Grand Total 70.00

Means of Finance: Rs.

Equity Share Capital 60.00

Term Loan 10.00

Deposit from Directors / Shareholders 0.00

Total 70.00

Excel International

PROJECTED PROFIT AND LOSS ACCOUNT FOR THE YEARS…

(Rs. in Crores)

Years 2015-16 2016-17 2017-18

A INCOME (Refer Page 14)

I School Fees 11.79 14.76 17.06

II Other Income 0.25 0.35 0.50

Total Income 12.04 15.11 17.56

B OPERATIVE EXPENSES

I Salaries (Refer Page 14) 0.48 0.53 0.58

II Administrative Expenses (Refer Page 15) 0.58 0.61 0.64

III Depreciation (Refer Page 16) 3.34 2.98 2.66

TOTAL 4.39 4.12 3.88

C Operating Profit Before Int (A-C) 7.65 10.99 13.69

D Interest on Term Loan 0.12 0.11 0.09

E Operating Profit Before Tax 7.53 10.88 13.60

F Provision for Tax 2.33 3.36 4.20

G Profit After Tax 5.21 7.52 9.40

H Retained Profit 5.12 7.45 9.33

I Balance Transferred From P & L A/C 0.00 5.12 12.57

J Profit Carried to Balance-Sheet 5.12 12.57 21.90

K Depreciation added back 3.34 2.98 2.66

L Net Cash Accruals 8.46 10.43 11.99

Excel International

PROJECTED BALANCE SHEET AS ON 31st March....

Years 2013-14 2015-16 2016-17 2017-18

LIABILITIES :

Equity Share Capital 60.00 60.00 60.00 60.00

Profit & Loss A/c 0.00 5.12 12.57 21.90

Shareholders' Fund 60.00 65.12 72.57 81.90

Secured Loans

Term Loan 10.00 9.83 9.65 9.48

Unsecured Loans

Deposits from Directors/Shareholders 0.00 0.00 0.00 0.00

Current Liabilities

Deposit from Students 0.00 4.51 5.64 6.52

Other current Liabilities

Provision for Taxation 0.00 2.33 3.36 4.20

TOTAL LIABILITIES 70.00 81.78 91.22 102.10

A S S E T S

Gross Fixed Assets 38.75 68.75 68.75 68.75

Less : Depreciation 0.00 3.34 2.98 2.66

Net Fixed Assets 38.75 65.41 65.77 66.09

Capital Work in Progress 30.00 0.00 0.00 0.00

Non Current Investments 0.00 10.37 19.59 29.28

Current Assets

Cash & Bank Balance 0.75 3.17 2.00 2.02

Electricity Deposit 0.50 0.50 0.50 0.50

Advance Tax 0.00 2.33 3.36 4.20

Other Current Assets 0.00 0.00 0.00 0.00

Total Current Assets 1.25 5.99 5.86 6.73

TOTAL ASSETS 70.00 81.78 91.22 102.09

Diff. 0.00 0.00 0.00 0.00

C.R. N.A. N.A. N.A. N.A.

TOL / TNW 0.17 0.26 0.26 0.25

D:E 0.17 0.15 0.13 0.12

Appendix