financial analysis & planning 12 nov
TRANSCRIPT
www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
FINANCIAL ANALYSIS
AFTERSCHO☺OL – DEVELOPING CHANGE MAKERS
CENTRE FOR SOCIAL ENTREPRENEURSHIP PGPSE PROGRAMME –
World’s Most Comprehensive programmes in social entrepreneurship & spiritual entrepreneurship
OPEN FOR ALL FREE FOR ALL
www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
FINANCIAL ANALYSIS & PLANNING
Dr. T.K. Jain.
AFTERSCHO☺OLCentre for social entrepreneurship
Bikaner M: 9414430763
www.afterschool.tk, www.afterschoool.tk
www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
Mr A, a trader of dry fruits has charged in excess of
what is displayed on the package. Can a complaint be filed
against him?
• Yes – it is unfair practice.
www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
After 12 years we shall pay Rs. 84000. if we want to pay as
annuity, what should be annuity? Rate: 9.35% p.a.
• Formulae of annuity:
• A ((1+rate)^N -1)/rate = 84000
• ((1.0935)^12 -1)/ (.0935 *84000) =1/ Annuity
• Annuity = 4084 approx. answer.
www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
I have to pay Rs. 2800 per month for 2 years. Rate = 11% p.a. what is its present value – if we want to
settle it now?
• A ((1+rate)^N -1)/rate = future value
• 2800((1.009166)^24-1)/(.009166) = 74783
• The present value of 74783 is 60695 answer.
www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
I deposited Rs 300000 in a bank and now I shall get Rs. 6374 every month for 5 years. What is the rate
of interest?
• A ((1+rate)^N -1)/rate = future value
www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
A person consuines certain goods for the purpose defined as
“Commercial purpose”, is he a consumer?
• No.
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Any person aggrevied by an order made by the district Forum
may prefer an appeal against such order to the ---
• To the state commission (consumer court) ( in 30 days.
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The State Consumer Forum has jurisdiction on
• On matters from 20 lakhs to upto Rs. 1 crores. (all consumer matters) & appellate juristiction
www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
Deposit Rs. 10000 for 8 years / 12 years, compound rate is 10% p.a.
what will be the money?
• 10000* (1.1)^8
• For 12 years:
• 10000* (1.1)^12
www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
I invest 25000 on 10% annual compounding per annum. What will
I get after 10 years?
• 25000 * (1.1) ^10
www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
What will be 40000 after 3 years at compound rate 12% per annum.
• 40000 *(1.12)^3
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What will be 25000 after 6.5 years at compound rate 9.5% per annum.• 25000 * (1.095)^6.5
www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
What will be 40000 after 3 years at compound rate 12% per quarter.
• =40000*(1.03)^12
www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
What will be 20000 after 4 years at compound rate 10% per Half
yearly.• 20000*(1.05)^8
www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
I need Rs. 1lakh after 5 years, what amount should I deposit, if interest
rate is 9% p.a. compounding. • Let me find present value :
• 100000/(1+.09)^5
www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
I am to get 80000 after 7 years. What is is present value if Rate is
10% compounded half yearly
• 80000/ (1.05)^14 = 40405
www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
I can sell an asset for 15 lakhs after 2 years. Discount rate is 9% per
annum quarterly compounding. At what price can I sell it today?
• 1500000/(1.0225)^8
www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
I invest 150000 at 10% per annum compounding annually. How much
time will it take to grow to Rs. 353692?
• 150000*(1.1)^X = 353692
• 1.1^x = 2.357 (do it manually).
• X = 9 years.
www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
I bought some shares for Rs. 83000 and sold them for Rs.
134000 after 1 year. What is my yield?
• 134000/(1+Rate)^1 = 83000
• 1+Rate = 134000/83000
• 1+rate = 1.614
• Yield is 61% approx.
www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
Inflation rate is 6.42%. I get return of 10%. What is my real return?
• After one year I get 110 (on Rs. 100)
• 110/(1.0642) = 103.36
• Thus my real returns are 3.36% only.
www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
I et return of 9.5% inflation is 7%. What is real rate of return?
• After 1 year I get 109.5
• The real returns are :
• 109.5 / 1.07 = 102.3
• Thus my real returns are 2.3%
www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
I invested Rs. 10000 and got 13700 after 2 years, what is CAGR?
• I got returns of Rs. 3700 after 2 years, the rate is : 3700/10000 = .37 for 2 years.
• CAGR = (1+R)^1/N – 1
• =(1.37)^1/2 -1
• =1.17 – 1
• =.17 or 17% per annum is CAGR (compound annual growth rate).
www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
I invested Rs. 10000 and got 13700 after 4 years, what is CAGR?
• I got returns of Rs. 3700 after 4 years, the rate is : 3700/10000 = .37 for 4 years.
• CAGR = (1+R)^1/N – 1
• =(1.37)^1/4 -1
• =1.08– 1
• =.08 or 8% per annum is CAGR (compound annual growth rate).
www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
I invested Rs. 50000 in debentures for 3 years with 5% returns after every 6 months. What is CAGR?
• Total amount received:
• 2500*6 = 15000
• 15000/50000 = 30%
• CAGR = (1+Rate)^1/n – 1
• =(1.3)^(1/3) = 1.09 -1
• Thus CAGR is 9% per annum. Answer.
www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
I invested Rs. 20000 in shares and got dividend of Rs. 1800 in 1st year
and Rs. 1200 in 2nd year. I sold these for Rs. 27000. what is
CAGR? • I have got 3000 + 7000 (capital gain).
• 10000/20000 = 50%
• CAGR = (1+R)*1/2
• =(1.5)^(1/2) = 1.224
• Thus CAGR is 22.4% answer.
www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
If inflation is 6% and tax rate is 10% what should be my minimum
returns so that I have no profit / loss?
• 6 *(1-.1)
• = 6/.9
• =6.66 % answer.
www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
ABOUT AFTERSCHO☺OL
Afterschoool conducts three year integrated PGPSE (after class 12th along with IAS / CA / CS) and 18 month PGPSE (Post Graduate Programme in Social Entrepreneurship) along with preparation for CS / CFP / CFA /CMA / FRM. This course is also available online also. It also conducts workshops on social entrepreneurship in schools and colleges all over India – start social entrepreneurship club in your institution today with the help from afterschoool and help us in developing society.
www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
Why such a programme?
• To promote people to take up entrepreneurship and help develop the society
• To enable people to take up franchising and other such options to start a business / social development project
• To enable people to take up social development as their mission
• To enable people to promote spirituality and positive thinking in the world
www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
Who are our supporters?
• Afterschoolians, our past beneficiaries, entrepreneurs and social entrepreneurs are supporting us.
• You can also support us – not necessarily by money – but by being promotor of our concept and our ideas.
www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
About AFTERSCHO☺OL PGPSE – the best programme for developing great
entrepreneurs• Most flexible, adaptive but rigorous programme• Available in distance learning mode• Case study focused- latest cases • Industry oriented practical curriculum• Designed to make you entrepreneurs – not just
an employee• Option to take up part time job – so earn while
you learn • The only absolutely free course on internet
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Workshops from AFTERSCHO☺OL
• IIF, Delhi• CIPS, Jaipur• ICSI Hyderabad Branch• Gyan Vihar, Jaipur• Apex Institute of Management, Jaipur• Aravali Institute of Management, Jodhpur• Xavier Institute of Management, Bhubaneshwar • Pacific Institute, Udaipur• Engineering College, Hyderabad
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Flexible Specialisations:
• Spiritualising business and society• Rural development and transformation• HRD and Education, Social Development• NGO and voluntary work• Investment analysis,microfinance and inclusion • Retail sector, BPO, KPO• Accounting & Information system (with CA / CS /CMA)• Hospital management and Health care• Hospitality sector and culture and heritage• Other sectors of high growth, high technology and social
relevance
www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
Salient features:• The only programme of its kind (in the whole world)• No publicity and low profile course• For those who want to achieve success in life – not just a
degree• Flexible – you may stay for a month and continue the rest of
the education by distance mode. / you may attend weekend classes
• Scholarships for those from poor economic background• Latest and constantly changing curriculum – keeping pace
with the time• Placement for those who are interested• Admissions open throughout the year • Latest and most advanced technologies, books and study
material
www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
Components • Pedagogy curriculum and approach based on IIM Ahmedabad and ISB
Hyderabad (the founder is alumnus from IIMA & ISB Hyderabad)• Meditation, spiritualisation, and self development • EsGotitial softwares for business• Business plan, Research projects• Participation in conferences / seminars• Workshops on leadership, team building etc. • Written submissions of research projects/articles / papers• Interview of entrepreneurs, writing biographies of entrepreneurs• Editing of journals / newsletters• Consultancy / research projects • Assignments, communication skill workshops• Participation in conferences and seminars• Group discussions, mock interviews, self development diaryng • Mind Power Training & writing workshop (by Dr. T.K.Jain)
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Pedagogy
• Case analysis,• Articles from Harvard Business Review • Quiz, seminars, workshops, games, • Visits to entrepreneurs and industrial visits• PreGotitations, Latest audio-visuals• Group discussions and group projects• Periodic self assessment• Mentoring and counselling• Study exchange programme (with institutions out of
India)• Rural development / Social welfare projects
www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
Branches
• AFTERSCHO☺OL will shortly open its branches in important cities in India including Delhi, Kota, Mumbai, Gurgaon and other important cities. Afterschooolians will be responsible for managing and developing these branches – and for promoting social entrepreneurs.
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Case Studies
• We want to write case studies on social entrepreneurs, first generation entrepreneurs, ethical entrepreneurs. Please help us in this process. Help us to be in touch with entrepreneurs, so that we may develop entrepreneurs.
www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
Basic values at AFTERSCHO☺OL
• Share to learn more• Interact to develop yourself• Fear is your worst enemy• Make mistakes to learn • Study & discuss in a group• Criticism is the healthy route to mutual support
and help • Ask fundamental questions : why, when, how &
where?• Embrace change – and compete with yourself
only
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