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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We are planning to offer 30 day
credit to our customers. We plan to
charge interest @24%. If someone
makes cash payment, we want to
offer cash discount. How much
discount should we offer?
 If I get payment after 30 days, I charge 24%
interest on that. Thus interest charged is 24/100
*30/365 * amount. Thus it will be about Rs. 2 on
100.
 Thus cash collection should be 1/(1+interest
amount) = 1/1.0197 =.9806
 Thus discount = 1-.9806 = .0194 or about Rs. 2 on
100 Rupees.
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Our sales are Rs. 25 lakhs. Average
collection period is 50 days. Bad
debt losses are 5% of sales.
Collection exp. 25000. cost of funds
= 15%. Choose out of the
alternatives:

 Option1 : give 40 day credit. Bad debt

will be 4% of sales, collection exp. Will
be 50000.
 Option 2: 30 day credit, bad debt =3%,
collection exp. 80000.
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Solution . . .
 OPTION 1. average debtors:
 25,00,000*40/365 = 273973, int. =41095
 Earlier the debtors were:
 2500000*50/365 = 342465, int= 51370
 Savings in interest=10275
 Bad debt: 4% of 25lakh = 100000
 Earlier it was 125000
 Savings in bad debts = 25000

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Solution . . .
 Collection exp. = 50000
 Earlier it was 25000

 Thus there is dis-saving of 25000

 Netbenefit = 10275+25000-25000
 =10275

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Solution. . .
 OPTION 2:
 Interest on money blocked:
 2500000*30/365*15/100 = 30821
 Savings in interest =51370-30821
 Bad debt = 75000
 Savings = 50000
 Collection =80000 (loss = 55000)
 Net impact: 20549+50000-55000 = 15549.
 Thus option II is far better. Answer.

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My annual cash requirements are 10
lakhs. I have 20 FDs of 50000, 1
Lakh, 2 Lakh, 2.5 lakh and 5 lakh
each. Conversion charges 1000. Rate
of interest 5%. What do I do?
 If I convert FD of 50000 value, my
conversion charges will be 20000
 (I am converting 20 FDs)

 My interest lost will be (I assume that I

get these matured in between the year,
evenly spread out) 2500/2 = 1250 per
FD or 25000. total cost 45000.

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SOLUTION . . .
 For 2 lakh.
 We have 5 conversions, thus cost is
5000.
 Interest lost : 10000/2 or 5000 per FD
that means loss is 25000.
 We can find that interest loss is equal in
all cases. But conversion charges are
different. Total loss = 30000

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Solution . . .
 Let us try for 5 lakh
 Conversion charges Rs. 1000 each so
2000.
 Interest lost (it is a big amount FD, and we
shall not be able to divide it in various
months, so interest lost will be at least
75%). Thus 37500.
 Total loss: 39500
 Thus I should convert Rs. 2 Lakh FD (best).

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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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