Demand Analysis

After going through the online information the next step is to estimate the effective demand in
the past and the present.
As per the secondary data the demand of GATE / IES is as follows:

Total final year students in Engineering colleges (in Delhi NCR only)

= 45000 students/year (approx.)

Total students (including third year and final year and pass out)

= 45000 x 3 = 135000 students/year (approx.)

Expected no. of students preparing for GATE/IES (10% of total students) = 13500

Other Institutes have students:

Area Manufacturer Supply (units/month)
Made Easy 1 400
Gate forum 5 2,410
Elite Academy 10 5,650
Shar Study Circle 4 2,100
Panecea
Dronacharya
Others
Total students 10,560
=
Total supply = { 300*126720}/ 20
= 1900,800 units /year
Demand-Supply Gap Estimation
The demand of handicraft is 9200000 units/ year and the supply is 1900,800 units/ year.

So the demand supply gap is:

= 9200000-1900800

= 7299200 units/year

BUSINESS FORECASTING

Business from Classroom Courses @ Rs.30000 per student

Year 2010 2011 2012

No. of Students 200 300 500

Revenue 6000000 9000000 10000000

Business from Correspondence Course @ Rs.5500 per student

Year 2010 2011 2012

No. of Students 200 300 500

Revenue
 Business from Offline Test Series @ Rs.3000 per student
Year 2010 2011 2012

No. of Students

Revenue

Business from Online Test Series @ Rs.2000 per student

Year 2010 2011 2012

No. of Students

Revenue

Annexure: 2

Interest Term Loan

14 Equal Installments @ 12% per annum

Loan O/S Loan O/S at Loan O/S at Interest for Interest for Total
Year
at the the end of 1st the end of the 1st half the 2nd half interest for
beginning half year 2nd year year the term
half year loan

1 2590445 2405413 2220381 155426 144324 299750

2 2220381 2035349 1850317 133222 122120 255342
3 1850317 1665285 1480253 111019 99917 210936
4 1480253 1295221 1110189 88815 77713 166528
5 1110189 925157 740125 66611 55509 122120
 6 740125 555093 370061 44408 33306 77714
7 370061 185029 0 22204 11102 33306

Note: term loan of 25, 90,445 will be paid

Annexure: 3

Working Capital Requirements

Items Norms in days 1st year 2nd year 3rd year
Raw materials 30.00 62500 67708 72916
Stock in process 1.00 1837 1990 2143
Finished goods 4.00 14698 15923 17148
Book debts 7.00 25722 27866 30009
Total Current Assets 42.00 104757 113487 122216
Less: Margin for WC
26189 28371 30554
from long term sources
(25% of RM CAs)
Less: Trade credit for
62500 67708 72916
raw materials
Bank finance for WC 16068 17408 18746
INTREST @ 12 % 1928 2088 2249
Annexure: 7

Projected Balance Sheet

Construction 1st yr 2nd yr 3rd yr
Period End
Liabilities
Share Capital 1295203 1295203 1295203 1295203
Reserve & Surplus 787968.50 1609238 2492517
*Term Loans 2590445 2220381 1850317 1480253
* WC Adv 16068 17408 18746
Current Liabilities & Provisions 1365497.50 1555739 1745273
* Trade Credit 62500 67708 72916
Total 3885661 5685131 6327918 7032005
Assets
Fixed Assets
* Gross Block 3665177 3665177 3665177 3665177
* Less: Accumulated Depreciation 241169 482338 723507
* Net FA 3665177 3424008 3182839 2941670
Current Asset Loans & Adv
* Raw Materials 62500 67708 72916
* Stock in Process 1837 1990 2143
* Finished Goods 14698 15923 17148
*Book Debts 25722 27866 30009
Cash & Bank Balances 26189 2059225 3031592 3968119
*Preliminary Expenses 194282 97141 97141
Total 3885648 5685131 6327918 7032005
Annexure: 10

BREAK EVEN POINT FOR THE PROJECT

Amount Amount Amount
A Sales Realisation 3288000 3562000 3836000

B Variable Costs
Raw Materials 750000 812500 875000
Interest On Working Capital 1928 2088 2249
Power & Water 60000 65000 70000
Selling & Distribution Expenses 50000 54167 58333
Total 861928 933755 1005582

C Fixed Cost
Wages And Salaries 480000
Repairs And Maintenance 10000
Depreciation 241169
Administrative Expenses 360000
Interest On Term Loan 299750
Total 1390919 1390919 1390919

D Contribution(A-B) 2426072 2628245 2830418

p/v ratio 73.78564

Break Even Point In Terms Of 1885081

Volumes Of Sales
Break Even Point In Terms Of 57.33214
Installed Capacity