2. Introduction
Name of the Business The Learning Tree School Pvt Ltd
Address: Near Rajhans Circle
Airport Road
Pune-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
3. 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
5. Roles and Responsibilities of
members of organization
• Responsibility of board
• Responsibility of the Director and faculties
• Responsibility of children
• Responsibility of parents/Guardians
6. 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.
7.
8.
9. 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
10. 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)
156800
0
11. 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
12. 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
13. Financial Plan
FINANCIAL 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
14. 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
15. 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
16. Excel International
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
17. II ADMINISTRATIVE EXPENSES
Per 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
18. Excel International
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
22. 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
Excel International
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
23. 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
24. 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
