Financial Analysis

AFTERSCHOOOL – DEVELOPING CHANGE

MAKERS
CENTRE FOR SOCIAL ENTREPRENEURSHIP
PGPSE PROGRAMME –
World’ Most Comprehensive programme in social
entrepreneurship & spiritual entrepreneurship
OPEN FOR ALL FREE FOR ALL

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 Financial Analysis
Dr. T.K. Jain.
AFTERSCHOOOL
Centre for social entrepreneurship
Bikaner
M: 9414430763
tkjainbkn@yahoo.co.in
www.afterschool.tk
www.afterschoool.tk

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The details of the particulars are as
under: for 2 consecutive years, they
paid dividends of 37500, got 13000
profit from sale of machine (book
value 19000) , what is FFS?
Plant 63500 142500
Investment 132000 290000
Bonds 250000 70000
Capital 400000 400000
Reserves 238000 410500

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Solution. . . .
 Analysis of each items:
 Investment:132000 to 290000 =
increased = it means, we have
invested Rs. 158000 in investments.
 Bonds : 250000 to 70000, it means,
we have paid bonds, thus we have
paid Rs. 180000.
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Analysis continued . . .
 Plants:63500 to 142500 there is
increase in the plants = we have
79000 of new plants. However,
19000 of plants were sold, thus net
purchase of plants is 98000 (which
is purchase of plants. )

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Analysis continued. . .
 There is increase in reserves 238000to
410500 = which means, our
profits have increased and there are
172500 of profits
 There is no information about
depreciation (otherwise we could
have made adjustments for that).

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FUNDS FLOW STATEMENT
SOURCES OF FUNDS APPLICATION
Profits (funds from Investment: 158000
operations) Bond Payment: 180000
(172500-13000) =159500 Dividend:37500
Sale of Machine Plant: 98000
(19000+13000)=32000 Total : 473500
Total 191500
Decrease in working
capital : 282000
Total : 473500

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Summary:
 Working capital will decrease when
application of funds is more than sources
of funds.
 Working capital will increase, if sources
of funds are more than applications.
 Profits from sale of plants etc. will not be
funds from operations, so adjust them.

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FIND WORKING CAPITAL
REQUIREMENTS FOR XYZ LTD.
 SALES = 2400000 (2MONTH CREDIT)
 RAW MATERIAL=600000(2 MONTH CREDIT)
 WAGES 480000
 MFG. EXP 6 LAKH (ONE MONTH CREDIT)
 ADMN. EXP 150000 (1 MONTH CREDIT)
 SALES EXP. 75000 (QUARTERLY
ADVANCE)

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QUESTION. . .
 SAFETY MARGIN = 10%
 MINIMUM CASH = 80000

 STOCK = 1MONTH FINISHED & 1

MONTH RAW MATERIAL.
 GROSS PROFIT MARGIN = 20%

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SOLUTION. . .
 CASH = 80000
 DEBTORS: 400000 *100/120 = 3,33,333
 INVENTORY:
 Finished :200000*100/120 = 166666
 Raw material: 50000
 Sales :18750
 Total :648749
 Less credit available to us:

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Solution . .
 Raw material : 100000
 Mfg. exp = 50000

 Admn. Exp = 12500

 Wages = 48000/12 = 40000

 Net working capital: 648749- 202500

 =446249

 Add 10% margin = 490873 answer.

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 ABO UT A FTERSCH OOO L
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.

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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

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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.

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About AFTERSCHOOOL 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
AFTERSCHOOOL
 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

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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
 Indepth knowledge and expertise
 Professional approac: World class approach
 Strong intellectual and business capabilities
 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
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material
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
 Essential 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
 Presentations, 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

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Branches
 AFTERSCHOOOL 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.

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Basic values at afterschoool
 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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www.afterschoool.tk
social entrepreneurship for better
society

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