Project Tabish

8/7/2019 Project Tabish

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Acharya Institute Of Technology, Banagalore-90 1

Education Consultancy service

Service industry

An industry made up of companies that primarily earn revenue through providing intangible

products and services.

Service industry companies are involved in retail, transport, distribution, food services, as

well as other service-dominated businesses like education consultancy service.

The Service industries (More formally termed: 'tertiary sector of industry' by economists)

involve the provision of services to businesses as well as final consumers. Such, therefore,

include accounting, tradesman ship (like mechanic or plumber services), computer services,

restaurants, tourism, etc.

Hence, a Service Industry is one where no goods are produced whereasprimary industries are

those that extract minerals, oil etc. from the ground and secondary industries are those that

manufacture products, including builders, but not remodelling contractors.

Demand is driven by the needs of businesses, non profit institutions, and government

agencies for outside advice. The profitability of individual companies depends on the

efficiency of their operations and their ability to maintain a steady flow of business. Large

firms have advantages in being able to offer broad ranges of services and to take on more

complex projects. Small firms can compete effectively by specializing. The industry is

labour-intensive.

Education in India:

Education in India has a history dating back to the old town centres of learning at Taxila and

Nalanda. With its multiplicity and paradoxes, India never ceases to fascinate. And educationin Indiais only one among several other elements that have attracted the attention of the

world. Although the United Nations is concerned about the presence of a large number of

illiterates, several more were surprised by the quality of some of the human resources that the

education system in India has produced.

Education in India is under the control of both the Government of the Union and States, with

some responsibilities lie with the Union and States have the autonomy to others. The growth

of the Indian economy in recent years and the obligation to maintain is also forcing the Indian

government to accelerate development of all branches of the Indian education system.

Therefore, it would be very interesting to understand and analyze the various structures

of education in India, its current status and future developments.


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The current education system in India is an implementation of the British rulers. 1854 Wood

office laid the foundations of the current system of education in India. Before the arrival of

the British in India, the education system is a private one. With the introduction of the Office

of wood known as the Magna Carta of Indian education, the situation changed. The main

objective was to prepare for the operation of India Employees of local government. Under itthe means of school education were the vernacular, whereas higher education was given in

English only. British government began to fund Indian schools in need of help and thus

gradually some of the schools became government-aided.

The growth of the Indian economy in recent years and the obligation to maintain is also

forcing the Indian government to accelerate the development of all branches of the Indian

education system. Therefore, it would be very interesting to understand and analyze the

various structures of education in India, its current status and future developments.

India Education Historical Background

The Vedas, Puranas, Ayurveda, Yoga, Kautilya Arthasahtra are just some of the milestones

that the traditional system of India boasts of knowledge. Evidence of a formal education in

ancient India under the Gurukul system.

In the Gurukul system, young boys who were passing through the stage of the chastity of lifehad to stay at the Guru or the teacher's house and complete their education. Although the

old education system has produced many geniuses and remains an important area of research,

is not equal. Women and people of lower castes are losing their right to education. The spread

of Jainism, Buddhism, Bhakti and Sufi movements had some effects of the release of the

situation of women and Sudras atisudras. But is the English language and movements of the

Reformation of the 19th century that had the most liberating effect in pre-independent India.So the British, although rightly criticized for devastating the Indian economy, can also be

credited for leading a revolution in the Indian education system.

India Education Present Condition

Shortly after gaining independence in 1947, achieving education for all has become a priority

for the government. As discrimination based on caste and gender has been a major obstacle to

the healthy development of Indian society have been made illegal by the Indian Constitution.

The 86th constitutional amendment also has made the elementary education a fundamental

right for children between the age-group 6 to 14 years. According to the 2001 census, the

total literacy rate in India is 65.38%. The literacy rate for women is only 54.16%. The gap

between rural and urban literacy rate is also very important in India. This is evident by the

fact that only 59.4% of the population in rural areas are literate, compared to 80 % of the

urban population of 3% according to the 2001 census.

To develop the system of higher education, the government established the University Grants

Commission in 1953. The main function of UGC has been to regulate the level and

distribution of higher education in India. There was a marked progress in expanding higher

education if we take into account the increase in higher education institutes in India.

The higher education system in India, covering more than 15,000 universities, 20 centraluniversities, 219 state universities, 110 universities and 13 institutes National considered
http://www.indiaacademic.com/education/higher-education-india.htmlhttp://www.indiaacademic.com/education/higher-education-india.html


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important. This number will soon swell as the creation of 30 more central universities, 8 IITs,

7 IIMs and 5 new Indigenous Institutes of Science is now proposed.

Education System in India

The present education system in India, consisting mainly of primary education, secondaryeducation and higher education. Primary education consists of eight years of education. Each

secondary and upper secondary education has two years of education. Higher education in

India begins after passing upper secondary education or Rule 12. Depending on the tide,

doing graduation in India can take three to five years. Graduate courses are usually two to

three years. After completing post-graduate students can do research in different educational

institutions also remained open.

Prominent Educational Institutes in India

There are quite a number of educational institutes in India that can compete with the besteducational institutes in the world. The Indian Institute of Technology (IIT), Indian

Institute of Management (IIMs), Indian Institute of Science, National Law Schools,

Jawaharlal Nehru University are some of the institutes.

Education for the Marginalized in India

As education is the means to achieve socio-economic transformation in society, the various

measures being taken to improve access to education for marginalized sectors of society. One

such measure is the introduction of reservation in institutes of higher education. Under

current law, 7.5% in schools seats are reserved for the tribes, 15% of scheduled castes and

27% for non-creamy layer of other backward classes (OBC). Under the Constitution of India,various minority groups can also create their own educational institutions. They are also

taking steps to improve access to higher education among women in India by establishing

several educational institutions exclusively or reservation of seats in existing institutions. The

growing acceptance of online courses and the expansion of the Open University system are

also contributing greatly to the democratization of higher education in India.

Conclusion

Despite all efforts to develop the education system in India, access, equity and quality

of education in Indiacontinue to haunt the policy makers to date. This is mainly due towidespread poverty and prejudice diverse. The inability to check the dropout rates among the

marginalized sectors of the population is another concern. However, the renewed emphasis

on education sector in the five-year plan and 11 increased spending on primary and higher

education can act as a palliative for the Indian education system.


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Educations consultancy services:

With increase the number of subjects, career courses, professional courses and various other

fields that are offered these days, students requirement foreducation consultants has

increased by leaps and bounds. There are some of education consultants in India which opentheir branches selection out each one over the country and cover every one major regions and

cities of India. Education Consultancy firms in India provide the specialized services

for study in India and study abroad the country where you might like to study, the university

you really could really like to join and the course you might love to undertake.

Educational consultants give specialized info about the country where you actually might

love to study, the university you would like to join and the course you would really like to

undertake. A few of the personal education institutes that provide overseas education

guidance and counselling too supply coaching for overseas entrance examinations such as

GMAT, GRE, TOFEL and IELTS. In addition to this, a few of the education consultants also

supply personality development programs that are also designed to assist students handlecampus interviews, group discussions and personal interviews.

They are regularly backed and encouraged by their parents to visit educational consultants to

buy the right concept and info preparing the university which they you would like to join or

courses that they desire to undertake. Now a day parents and children are equally vigilant to

grasp getting ready the immediate growing industry and to understand the diverse benefits

and disadvantages of pursuing some course in that selected industry.

Education consultants in India act as guides who channelize your talents and interest to

assist you really select the right way and help you actually create a bright future. A few of theeducation institutes too offer students assist to purchase them admitted in the institutes of his

or her option by guiding them in completing the necessary formalities.


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A.ABOUT US (Background and inception):A Dream! A Hope! A Wish! This is where all good things start and so was the start

of Indian Educational Services.

Indian Educational Services is a registered consultancy firm with its registered office

located at Bangalore and other offices spreads in Mumbai, Jammu, Mawana, Guwahati,

Siliguri, Dibrugarh, Dulijan, Moran and Tinsukia . Apart from these there are few more

regional offices in pipeline at Delhi, Kolkota and Pune.

The firm was started by a group of young and enthusiastic entrepreneurs who wanted to

create dynamic, resourceful, able and innovative manpower to ensure that India regains her

responsible & creative leadership. We started as a small entrepreneurial venture few years

back. In such a short time span we have been able to achieve great success and meet up theneeds of the market. Simply by combining the best technology, the best practices and most

importantly the best people, Indian Educational Services has enabled to establish competent

track record. Our track record makes us proud. However, the best chapter is yet to begin. It is

a story where Indian Educational Services is again seeing a future full of unlimited growth.

B.Nature of the business carriedBusiness is Proprietor ship in nature. It belongs to consultancy service industry. Indian

educational services is an education consultant.

C.VISION, MISSION AND QUALITY POLICYVISION:

To be the premier organization to transform our large population into a national asset where

each individual contributes to the overall development of India.

MISSION:

To create an environment for the moral, social, cultural and Educational progress of the

citizens of the country in realization of an egalitarian society.


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Quality system manual

SCOPE

To provide admission facilitations for higher studies, placement facilitations, educational

tours and travels and SMS services.

EXCLUSIONS

The following clauses of ISO 9001: 2008 standard are excluded from the Quality Management

System as these clauses are not applicable to our business.

Clause

No.Clause Heading Reason for Exclusion

7.3 Design and Development Indian Educational Services does not design or develop anyactivities. It just facilitates the activities.

7.5 Control and Validation ofProduction

Being a placement agency, the control and validation of

production is not applicable to us.

However, the control and validation of service

provision is applicable and is addressed in the QMS.7.6 Control of Monitoring and

Measuring EquipmentsAs we are a consultancy firm, we do not use any instruments

or equipments (hardware/software) for monitoring and/or for

measurement of services or service processes at present.

Table-A.2.1

QUALITY POLICY

We strive to achieve total customer satisfaction by virtue of providing quality services

through...

To make the best effort available for placement and admission.

Ensuring adequate industrial exposure for educational tour

Compliance with statutory and regulatory requirements of each services

Regular review of effectiveness of Quality Management System and

Continual improvement in our operations.


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QUALITY OBJECTIVE

To develop and maintain the quality management system complying ISO 9001: 2008Standard.

To increase sales by 25 % per annum.

To review the effectiveness of quality management system at an interval of six months

and update the system to suit the firm's overall business goals.

To measure customer satisfaction and continuously improve the services to improvecustomer satisfaction by 10%.

Note: Quantifiable and measurable targets are being used to achieve the quality objectives.

The top management decides on yearly targets at the beginning of each year, which is

communicated to the concerned persons. Achievements shall be reviewed against the targets


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D.WHAT WE DO(Products/Service Profile):

The business of Indian Educational Services has been structured into four individual Strategic

Business Units (S.B.U).

Educational Services:

Admission Guidance:

Indian Educational Services has launched a unique career counselling program to

help you make a wise career decision. This program is aimed at guiding the students

towards a career path that best suits their interests, aptitude and capability.

Indian Educational Services attempts to address this crucial issue of career

selection and development procedures by designing a systematic and step-by-step

process of Career Development. This involves the following stages:

Personal Evaluation

Exploration of Career Opportunities

Assistance on Decision Making

Designing the right career path for you

Spot Admission:

Indian Educational Services is authorized by various colleges to conduct spotadmission and interview. Apart from this we also do admission under

NRI/Management quota for various institutes and courses. We therefore have

successfully provided admission to many students in their desired course and

colleges.


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Student package:

We understand that choosing an institution is one of the most important decisionsyou make in your life thats why at we understand that choosing an institution is one

of the most important decisions you make in your life thats why at Indian

Educational Services we counsel students with as much care as u care for your

career. We provide wide range of services under the student package to support and

guide you towards a bright future.

Services under Student Package:

Counseling:

One to One Counseling

Tele Counseling

Online Counseling

Updates on:

College Opportunities

Form Availabilities

Job Opportunities(Part-Time/Full Time)

Other Opportunities

Financial Assistance:

Short Term/Long Term

Educational Loans

Placements

Travel Assistance:

Travel & Ticketing

Accommodation (PGs, Hostel, Flat)

Providing Platform for:

Buying & Selling of Households

Buying & Selling of Vehicles

Opening Bank A/Cs

Transfer of Funds

Almost everything

Regular Updates are done vide SMS, Email, and Post.


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Parental Package:

In todays world it is very tough for a parent to send their ward to a new place or

unknown destination, even if it is for education. We at Indian Educational serviceswould like to offer a unique package sharing the worries of a parent who wishes to

provide proper education and best of facilities to their ward.

We at Indian Educational services offer a complete parental support to your

ward in field of health, education, travel and other facilities as such that you child

feels home away from home.

Services under Parental Package

Updates on:

Academic progress

Attendance

Results

Progress Review

Health Insurance to ward (ICICI Prudential)

Assistance on:

Travel & Ticketing

Accommodation

Regular Updates are done vide SMS, Email, and Post.

Manpower Solutions:

We as a Human Resource Consultancy firm specialize in matching talent with companies

for direct hire, temporary hire or placements for short term, long term or project based

only for our Students.

The Manpower solution unit of Indian Educational Services is committed to help

organizations increase their productivity through better use of their human resources and to

enable client companies to achieve real competitive advantages.

Every time we fill a position, or provide recruitment or consulting services, we remember

that you depend on the commitment, integrity, and high-caliber performance of our people as

much as we do. At Distinctive Personnel, the uncompromised quality of our services has

strengthened our reputation in many organizations.

Our Students are the reason for our success and, more importantly, the success of our

clients. That's why we're constantly working to offer you better benefits and better opportunities,

whether you're seeking temporary employment or a permanent career prospect. We don't just

place you in an assignment, we partner with you to assess your skills and objectives so we can


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find you just the right fit. We work hard to give you an advantage in a highly competitive job

market.

Tours and travels:

We conduct educational tours and travels for institutes in India and abroad. We are tied

up with few renowned travel agencies who help us coordinating these tours. We also

conduct industrial visits for colleges which over all add to the exposure a student gets

while pursuing his course. A part form this under student and parental package we help

students and parents with their travel plans and help them make tickets for the same.

Bulk SMS:We provide Bulk-SMS Business Solutions. This service is for the institutes and students

who send Hundreds or Thousands of SMS Daily. Bulk SMS helps you to send text

messages instantly to group or individual via your internet connected computer. We

provide this solution with most competitive rate in the industry. We provide solution for

Local, National and International SMS.

Features

Low cost

Saves time

Worldwide coverage

Instant delivery

No setup/installation cost

No expiry/time period

Pay only for what you use.


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Thus to brief it up we provide the following services:

Educational services:

Admission guidance

Spot admission

Student package

Parental package

Manpower solutions: Permanent jobs

Temporary jobs/Internship

Tours and travels:

Industrial visit

Educational tours

Assistance in travel for students and parents

Bulk SMS:

For Institutes and Students

Local, National and International SMS.


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E.Area Of OperationIndian Educational Services works in different areas. It works globally as well as national

and regional market.

F.Owner-ship patternProprietor - ship

Name of the Head of the Institution : Raghav MantriDesignation : Proprietor

Address (Residence) : #36, 2 Floor, 2 Cross, Ayyappa Garden,

Adugoudi, Bangalore -30Address_Res

Name of the Management Representative : Nishant Chhajer

Designation : Marketing & Research Manager

Address (Residence) : Shaeen Aejaj Apartments, 3/1, 1st Main Road,

Bose Compound, Lakshandra, Bangalore-30

s1

diagram-A.2.1

Proprietor

Marketing & Research Manager

&

Tie-ups(Management Representative)

Office

AdministratorField Manager Receptionist cum

Tele-Caller


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G.Competitors information Other local and national level education consultants.

Man power service providers.

SMS service providers etc.

H.Infrastructural facilities Situated in the heart of the city.

Office has separate cabins for the proprietor cum managing director, Marketing heads

and Agents.

One nice technically advanced comfortable conference hall.

Attractive reception area.

Advanced well equipped office with Computer systems, three land-line phone

connection. Every employee has its own mobile phones for office purpose only.

Wi-Fi facility so that customers and employee can access internet at anytime needed to

have latest information about the market and to assist the clients with updated

information.

Tele-callers are always available to assist the client through phone line.

SMS service facility is also available to be in touch with the clients 24*7. Special SMS

number is there in the name of IES. Clients can send text messages to 56767.

Since clients come for consultancy and counseling, they need to wait for long hours

during peek seasons so for their comfort waiting area is well furnished with sofas,

television and Air conditioner.


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I. AchievementsBeing a first ISO certified education consultancy is an achievement of its own kind.

J.Work Flow Model

Diagram-A.2.2

Service

Realization

Planning

Service

Provision

Contract

Review

Purcha

sing

Customer

CommunicationSupplier

Control

Process /Customer

Feedback

QMS

Planning

Management

Review

Internal

Audit

HRD

Data

Analysis

Corrective/

Preventive Actions

Product

Verification

Product

Preservation

WORK FLOW

SUPPORT

Customer

Requirem

ents

Statutory/Regulatory

Requireme

nts

Product

Identification

All concerned

parties/processes

external/


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Sl.No

Process Inputs Activities Outputs Measures ofEffectiveness& Review Interval

Responsibility forReview

1. QualityPlanning Requirements ofcustomers,statutes/

regulations.

Resource

Requirements,

System

Feedback

Annual meetingto review the

quality policy,

quality

objectives,

system

performance etc.

Target setting

for next year.

QMS

modifications.

Minutes ofQMS Planning

Meeting,

Performance

targets for next

year, decisions

on resource

provision, and,

requests for

QMS changes

if any.

% Completionof planned

activities, %

improvement in

customer

satisfaction

scores.(Yearly)

Proprietor

2. Service

RealizationPlanning

Customer

requirementsand

specifications

Preparation of

quality plans.

Quality Plans % improvement

in Customersatisfaction

scores(Half Yearly)

Proprietor

3. Contract Review Customerenquiries.

Pricing,

Advertisements,

Counseling,

registration,

enrollment.

Price List,

batch details,

payment

schedule.

% Achievement

of Sales Target

(Monthly)

Proprietor

4. Purchasing List of items,open tender,

Purchase

Requests

To place orders

to approved

vendors and buy

the requiredmaterials.

Purchase

Orders,

Purchased

products.

Average

Inventory Value.

(Yearly)

Proprietor

5. Supplier Control Requirementsfor new vendors,

and, vendor

monitoring.

To enlist new

vendors, to do

vendor rating,

and to do re-

approval.

Supplier

Enlistment

Forms, List of

approved

suppliers,

rating.

Material Quality

Index, Delivery

Quality Index,

and Service

Quality

Index.(Yearly)

Proprietor

6. ProductVerification

List of items

with acceptance

criteria, Items

supplied byvarious

suppliers.

To check the

quality of

incoming

materials and tosegregate bad

from good.

Inspected-OK

items and

'Rejected'

items.Incoming

Inspection

Registers,

Positive Recall

Register

No. of non-

conformances

per

internal/externalaudits(Half yearly).

Proprietor


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7. ServiceProvision

Requirement

from the

customers

To provide

services (a)

Admission; (b)

Placement; (c)

Educational

tours; (d) SMSs

on request

(a) Students

admitted(b) Placement

completed(c) Tours

feedback(d) SMS sent

(a) % of students

admitted(b) % of

placement

completed(c) % of request

received again(d) % request of

availing it again

or further

reference

Proprietor

8. ProductIdentification &

Inspection

Marking

Need for

bought-out

product

identification

and inspection

status marking.

To give unique

lot numbers to

incoming items,

and to affix

Inspected OK/

Rejectedsticker on items.

Traceable

items.Lot numbers,

Inspection

marking.

No. of non-

conformances

per

internal/external

audits

(Half yearly).

Proprietor

9. CustomerFeedback

Customer list,

Customer

satisfaction

survey forms.

To conduct

customer

satisfaction

surveys as per

schedule.

Filled-up

Customer

satisfaction

survey forms,

analysis

reports.

% Achievement

of planned

surveys. (Half

yearly)

Proprietor

10. ManagementReview

Results of

Internal / Third

party Audits,

performance

reports etc.

To conduct

review after

every internal

audit/ every six

months.

Minutes of

Management

Review

Meetings

% Completion

of action plans.(Half yearly)

Proprietor

11. Corrective andPreventive

Actions

Audit Reports,

Customer

complaints etc.

To take

immediate

corrective

actions. To

decide on

preventive

actions after

investigation of

root causes.

Project reports

on preventive

actions, Non-

conformity

Investigation

Reports

% Completion

of corrective and

preventive

actions.(Half Yearly)

Proprietor

12. CustomerCommunication

New Service

information,

sales/

advertisement

needs, long/short

term business

strategy

deployment.

To prepare

yearly calendar

of various

marketing

activities and

implement the

plan.

Customer

Interaction

Plan,

Brochures and

promotional

materials,

advertisements

etc.

% Achievement

of Sales Targets

(Half Yearly)

Proprietor


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Table-A.2.2

Notes:

1. Monitoring and measurement of management processes shall be carried out on the basis of the

measures of effectiveness mentioned in the table above.

2. Reviews shall be based on actual data.

3.

Appropriate statistical tools to be used for data analysis.

4. Management reviews shall take the process performance data as the review input.

5. Actual data must be compared with the set targets and corrective actions need to be initiated

where undesirable / unfavorable deviations are significant.

13 HRD(for Staffs of

IEC)

Job descriptions,

CVs, Training

request memos,

Training

calendars of all

service providers

To recruit

people as per

requirements,

and to provide

training (in-

house/ external).

List of

personnel,

Training

attendance

sheets,

Training

History cards,

training

certificates,

etc.

% Availability

of skilled staff.(Half Yearly)

Proprietor

14. Internal Audits List of trainedinternal/external

auditors, QMS

documents.

To conduct

internal audits at

an interval of six

months or less.

Internal Audit

Notes, Audit

Summary.

No. of system

flaws/ non-

compliance

found per audit.(Half Yearly)

Proprietor


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K.Future growth and prospects

India is a developing country with increasing literacy rate and it has the second largest

population in the world and highest ratio of young population. With growing literacy rate

and highest number of youth there is always a greater scope of growth and higher prospects

in business point of view.

Education in India is highly competitive and students& parents are still lacking in

information so there is always a better prospects as education consultant and an education

counselor.


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McKinsey 7S framework developed in the early 1980s by Tom Peters and Robert

Waterman, two consultants working at the McKinsey & Company consulting firm, the basic

premise of the model is that there are seven internal aspects of an organization that need to be

aligned if it is to be successful. The 7S model can be used in a wide variety of situations

where an alignment perspective is useful, for example to help us:

Improve the performance of a company.

Examine the likely effects of future changes within a company.

Align departments and processes during a merger or acquisition.

Determine how best to implement a proposed strategy.

The Seven Elements

The McKinsey 7S model involves seven interdependent factors which are categorized

as either "hard" or "soft" elements:

"Hard" elements are easier to define or identify and management can directly

influence them: These are strategy statements; organization charts and reporting lines; and

formal processes and IT systems.

"Soft" elements, on the other hand, can be more difficult to describe, and are less

tangible and more influenced by culture. However, these soft elements are as important as the

hard elements if the organization is going to be successful.


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Figure-A.3.1


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1. Strategy: Strategy is created to maintain and make competitive benefit over the

competition.

2. Structure: Structure is the way the organization is constructed and who reports to

whom.

3. Systems: In systems the daily activities and events that staff members join in to get

the job done.

4. Shared values:Shared values are also called super ordinate goals. These values are

the center values of the company that are evidenced in the corporate culture and the

general work.

5. Style: you have to adopt the style of leadership.

6. Staff: In staff employees and their general capabilities are included.

7. Skills: Skills are the actual skills of the employees who are working for the company.

COMPANY PROFILE WITH RESPECT TO 7S MODEL OF MCKENSY

1. StrategyStrategy express in what direction the company will be going in the future. Based on the

market research, competition analysis and self-analysis, the crucial differentiating

competencies or strong sides of the company are identified and formulated. The coordinating

mission and the future goals are determined taking into account the above factor.

A strategy of corporation forms a comprehensive master planning how the corporation will

achieve its mission and objectives. It maximizes its competitive advantages and minimizes

competitive disadvantages.


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The strategy of IES is to grow internally by expanding its operation through acquisition and

strategic alliance. IES focuses to differentiate its services from competitors in the area of

Quality and service.

2. StructureThe structure of an organization is what follows from division of work, the task and

responsibilities, both horizontally and vertically. It is the total of various ways in which the

work is divided into separate tasks and the way in which these tasks are coordinated. It also

includes how the policies and procedures, govern the way in which the organization acts

within itself and within its environment.

Organization structure

Diagram-A.3.1

Proprietor

Marketing & Research Manager

&

Tie-ups

(Management Representative)

Office

Administrato

Field

Manager

Receptionist cum

Tele-Caller


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3.SystemFormal and informal procedures govern everyday activity covering everything from

management information systems through to the systems at the point of contact with the

customer.

It refers to the rules, regulations and procedures, both formal and informal in nature

within the company.

Systems for quality of services provided to the customer.

Systems for organisations maintenance and environment.

4.Shared valuesShared values of an organization can be characterized as the whole of the norms, views and

culture shared by the people working in the organization. Shared values also mean that the

employees share the same guiding values. Values are things that you would strive for even

if they were demonstrably not profitable. Values act as an organization concise,

providing guidance in times of crisis.

We are committed to deliver sustainable excellence in business performance

by focusing on the following:

Benefit our clients.

Realize the potential of our people

Meet our customer requirements

Maximize customer satisfaction


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Safeguard clients faith

Deliver structural cost reductions

Sustain a robust management system

Deliver continuous sustainable Health, Safety, Security and Environmental

excellences.

5.StyleIt is one of the seven levers which the top management can use to bring about change in the

organization. According to MCkensys Framework, Becomes evident through the patterns of

action taken by the members of the top management team over a period of time. The

MCkensys Framework considers "Style as more than the style of top management.

Indian Educational Services follows a Top to down style of management. It also works in a

participative style. The decisions are taken by the proprietor, after discussing with the

working staff members and business partners, concerning matters related to the organization.

At INDIAN EDUCATIONAL SERVICES the style that exists is unique in nature.

Employees are supposed to be team member of the company. Rewards are provided for

specialist skills and obeying the rules. Employees are free to give any ideas, suggestions etc,

for the betterment of the organization. This will be taken with active consultation with the

employees.

6. SkillsSkills refer to the fact that employees have the skills needed to carry out the companys

strategies. Training and Development-ensuring people know how to do their jobs and stay

updated with the latest technology.


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At INDIAN EDUCATIONAL SERVICES different training programs are given to

employees and marketing professionals to specialize in their particular discipline of work and

perform to the companies needs and strategies. They are given real time exposer.

7. StaffThe process by which the employees are recruited deployed and developed. Staff means that

the company has hired able people, train them well and assign them right jobs. Selection,

training, rewards recognition, retention, motivation and assignment to appropriate work or

all key issues.

The average age of employees is 28 and there has been some recruitment going on. Here the

operations head is in charge of planning the man power required.


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Strength:

Karnatakas First ISO 9001-2008 Certified Education Consultancy.

One of the Largest Chain of Education Consultant.

Over 100 Associated Institutional Clients.

Authorized by 20+ Institute for Spot Admission.

Geographical Reach in most of the Cities.

Over 150 Full Time Business Associate.

300+ Part Time Associate.

Assured Quality, Reliability and Expertise.

Experience of providing Guidance to over a Thousand Students.

Weakness:

Lack of control over man power.

Few staffs lacks in discipline.

Employee turnover ratio is high.

Proprietor is only responsible professional who takes maximum number of clients.

Many extra works can be removed from the shoulder of the proprietor but it is still

there which needs to be removed as soon as possible. This going to help the proprietor

to look after the strategic matters.

Lack of trusted employee stop the organization to spread their wings in other services.


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OPPORTUNITY

Good quality education is always in great demand. In today's competitive world,

Education plays a very important role in the life of students as well as parents. The

admission into a large number of institutes in the country that offer higher education

is based on an exam in which thousands of students compete with each other. These

Students have to appear for and do well in these entrances for their chances to become

brighter for admission. But a lot of time despite good scores students fail to get

admission in good universities or in the right course suitable to them just because of

lack of Guidance.

Good Counselling and Guidance always give a distinct advantage to students. EveryStudents Situation is unique and has to be treated from an Individual Perspective.

There are a large number of issues to be considered before a student transforms from

high school to higher education. Choosing the right course, Selecting the test to be

taken and forms to be filled for the same, Planning the Finance, City, University,

Accommodation and so on. It is here that an impartial education consultant comes

into picture and I.E.S, with its vast experience, a large number of associated Colleges

and a widespread network of counsellors in the country Serves the purpose.

we are again seeing a future full of unlimited growth.

To meet its growth plans, Indian Educational Services is constantly on a hunt for

knowledgeable Business Associates, who can merge their expertise with our vibrant

association and partner its success. The Innovative Franchise Concept of Indian

Educational Services Creates a long term business opportunity for entrepreneurs. It

serves the economic purpose of profit making along with the social purpose of

Guiding student community towards the right direction.

We are looking for Franchisees/Business Partners at different locations in the country

to impart Guidance to students. The Franchisees will essentially be entrepreneurs

running the activity as their own venture. They will operate under the guidance of

I.E.S, Head Office - using I.E.S. brand name, material and the formidable expertise

developed by I.E.S over a period of time.


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THREAT

Market is very volatile anytime it can go down and even can go up at the same time.

Since market is really broad there are so many other consultancies exist in the market

which proves to be a big threat.

Competition is very high.

Client can anytime shift to your competitors.

No guarantee of clients.

Negative publicity is always possible in this field. Negative image of the company can

ruin the business anytime.

Bad image of other consultants ruin the image of the education consultant industry.

Change in government changes admission process, fees, policies etc.


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SUMMARIZATION OF BALANCE SHEET:

Year 2009:

Liabilities Amount Assets Amount

Promoters capitals

Debt

548513.00

124040.00

Fixed assets- depreciation

Deposit Advances

Current Assets

466125.00

72000.00

134428

672553.00 672553.00

Table-A.5.1

Year 2010:

Liabilities Amount Assets Amount

Promoters capitals

Debt

539414.00

40680.00

Fixed assets- depreciation

Deposit Advances

Current Assets

386644.00

72000.00

121450.00

580094.00 580094.00

Table-A.5.2


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SUMMARIZATION OF PROFIT AND LOSS ACCOUNT

(year ending 31st,march 2009 & 31

st,march 2010):

Year 2009:

Total expenses : `969950.75

Depreciation : `111984.00

Net Profit : `266557.00

Gross receipts :`1171750.75

Other receipts :`176741.00

Year 2010:

Total expenses : `1201359.00

Depreciation : `79481.00

Net Profit : `409865.00

Gross receipts :`1464937.50

Other receipts :`225767.50


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I was delighted to work in the organization & get an exposure in the real world of

business. I went on to know about the complexities & challenges in the corporate sector.

The experiences I got in the firm:

Got overall exposure to a proprietorship firm.

Being in a small firm I get full exposure and learn something to an extent about whatare the lacking one proprietorship firm can have.

Being out side the management team I understood what management actually lacksin.

I got an opportunity to spend some time with the management and upper level teamwhere I learn the difficulties from their sides.

It definitely going to help me in long term either I become an employee or I become aproprietor.

Regarding my project title:

Got a chance to prepare yearly cash book of the firm.

Gone through the preparation of ledger & journal sheets & rearranging the balance

sheet.

Came to know the level of competencies.

Understood the cash flows & profits of the organization.

Came to know the ways of consultancy services provided by the organization.

Also came to know in brief about the startup of a new business plan & to form abusiness entity.


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a)Statement of the problem:Indian Educational Services being acknowledged by the Indian market for his hugepotential has increased its exposure towards the students.

After working here for nearly 2 months I intend to analyze & project the growth.

As its a newly introduced sole proprietorship firm, the future projection is truly relevant

& convenient.

b)Objective of the study:

To analyze the existing balance sheet of the past two financial years.

To visualize the future growth potential of the firm.

To project the returns as per the investment outlay.

To analyze the returns for the sustenance of the firm.

To analyze the future opportunities & way of expansion & modernization.

To ascertain expected cash outflow & inflow that will occur in the over a series ofyears.

To visualize the growth and returns under different situations or alternatives.

To analyze the sensitivity for the accepted alternative.


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c)Scope of the study:I got nearly two months time period to work in the organization. It may not give me thechance to understand the financial condition of the organization in detail. Still the scope

to learn the companies overall financial transaction was very high because I got the

opportunity to re- organize and prepare fresh cash book, ledger& journal for last two

years(year ending march 31st

2009 & 2010).

I find the scope to learn each and every financial movement of the company for the last

two financial years.

The project work gave a wide scope to analyze the cost & cash flow data of the concern

as well as the financial reports of the concern. There by to get knowledge of different

financial departments & their work culture.

Actual application of the project will include an overall development of the concern as

well as its various dept & operations.

d)Methodology:Introduction

For Financial statement analysis, the most common used analytical techniques are:

Horizontal analysis.

Trend analysis.

Vertical analysis.

Ratio analysis.

The tools of financial statement analysis help in establishing significant relationship and

changes.

In my project report the preferably used techniques for financial statement analysis isHorizontal Analysis.


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Financial statements present comparative information for the current year as well as the

previous year. A simple approach to financial statement analysis, known as Horizontal

Analysis, is to calculate the amount and percentage changes from the previous year to the

current year.

Investment proposal or growth analysis techniques:

The major prerequisite of successful entrepreneurship venture is quality of decision-

making process. Decision in investment is the most important financial decision. It is a

part of both long-term business planning process and strategic business definition. Usingavailable investment appraisal methods, entrepreneur should make positive or negative

investment decision. Within the development of the economic theory and the practice

many of methods made decision-making process rational and gave the scientific and

practical base for successful project evaluation.

In practice, there are three major traditional methods of evaluating investment proposals:

o Payback period method (PP)

o Net present value method (NPV)

o Internal rate of return method (IRR)

The advantage of all these methods is, first of all, simplicity and explicit interpretation of

the results. However, they have some imperfection, which can be overcome using modern

option approach.

All these three traditional methods use, as the base, projected cash flow that is discounted

according to the time value of money.

The largest problem for each investment is uncertainty of the future performance.Investors will never invest until future major uncertainty is cleared. In other words,

investors have the opportunity or option but not the obligation to invest in a project in a

period of time. They can also have flexibility to abandon, expand, contract, extend and

shorten the operation of the project even after the investment. A good project evaluation

methodology or model should incorporate in a quantitative way all the three

characteristics: irreversibility, uncertainty and flexibility. Traditional (conventional)

appraisal methodologies for project investment can hardly incorporate the three

characteristics above.

In recent years, management accounting and corporate finance academics have reasoned

that the conventional discounted cash flow techniques do not adequately incorporate thevalue of managerial flexibility to respond to the changes that can emerged during the


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project s life (Herath, Bremser, 2005). Furthermore, they do not take in a count properly

risks and uncertainty in investment and operating decisions. An emerging method of

research in capital budgeting called real options has been developed to overcome these

limitations (Herath, Bremser, 2005).

Real options techniques value managers options to make some adjustments according to

the current market situation. Once projected business plan does not have to be eternal and

unchangeable. Each project can be expanded if circumstances enable it, it can be

cancelled if market condition become worse and it can be delayed for some better

business condition period.

Real option methods for investment appraisal includes possible volatilities during the

project life by identification of all options that entrepreneur have and adding this option

value to the total project value. On this way some project that traditional investment

appraisal methods reject can be accepted if has some potential (optional) value.

It is important to notice that real option methods are not substitute for traditional

investment appraisal methods but their complement that enable wider insight of

investment judgment (Dixit, Pyndick, 1995).

Objectives and hypothesis

o

TRADITIONAL METHODS OF INVESTMENT ANALYSIS CANUNDERVALUE INVESTMENT OPPORTUNITIES BECAUSE THEY DO

NOT TAKE IN CONSIDERATION AN OPTIONAL VALUE

(POTENTIAL) OF INVESTMENT.

o ONLY TRADITIONAL METHODS FOR INVESTMENT ANALYSIS ARE

NOT ENOUGH BECAUSE MODERN MANAGEMENT IS FLEXIBLE. IT

ACTIVELY TRIES TO FIND ALL OPTIONS AND BENEFIT FROM THE

CURRENT BUSINESS POSITION.

These hypotheses can be divided on the next sub-hypotheses:

Decision on investment is the most important financial decision. It is a part of long-term business planning process as well as strategic business definition.

Traditional methods of the investment appraisal are often used for the tactical decisionmaking level, not in strategic level. These methods have the major importance for the

small, individual, irreversible and independent project appraisal. Traditional methods

are not enough for the complex, independent and multiphase projects appraisal.

Strategic of the capital planning that apply option approach is the way of managementflexibility quantifying as well as measure of all interdependent projects aspects.


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e)Limitations: Cash flow projections have been made as per the assumptions according to the

previous years cash flow and organizations current financial situation and growth.

Demand projections are made considering the present and past demands and the

probability of improvement with time and growth in the business.

Project analysis is based on secondary data.

Margins have been taken as per the projection.

Complexity of analysis because of an unlisted concern in the exchange.


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a)Market & demand analysis.

Demand Projection (no. of students)(25% growth)

COURSES 2011-2012 2012-2013 2013-2014 2014-2015

MBA 100 125 155 195

BE/B.TECH 50 63 78 98

MCA 10 13 16 19

MBBS 12 15 19 23

OTHERS

(BBA/BCA/Nursing)

80 100 125 156

MD/MS 3 4 5 6

Up to 10+2 45 56 70 88

Table-B.2.1


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Chart B.2.1

b)Existing demandCourses 2009-2010 2010-2011

MBA 64 80

BE/B.TECH 33 40

MCA 7 8MBBS 8 9

OTHERS(BBA/BCA/Nursing) 55 65

MD/MS 2 2

Up to 10+2 35 40Table-B.2.2

0

20

40

60

80

100

120140

160

180

200

2011-2012

2012-2013

2013-2014

2014-2015


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Chart- B.2.2

c)Different service charges:Courses Charge ( / student)

MBA

2500BE/B.TECH 3000

MCA 2500

MBBS 5000

OTHERS(BBA/BCA/Nursing) 1500

MD/MS 50000

Up to 10+2 1500

Table-B.2.3

0

10

20

30

40

50

60

70

80

2009-2010

2010-2011


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Chart-B.2.3

d)Existing receipts through education services (existingdemand * service charge):

Courses 2009-2010 ( ` ) 2010-2011 ( ` )

MBA 160000 200000

BE/B.TECH 99000 120000

MCA 17500 20000

MBBS 40000 45000

OTHERS(BBA/BCA/Nursing etc) 82500 97500

2500

3000 2500

5000

1500

50000

1500Charge ( Rs./ student)

MBA

BE/B.TECH

MCA

MBBS

OTHERS(BBA/BCA/Nursing)

MD/MS

Up to 10+2


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MD/MS 100000 100000

Up to 10+2 52500 60000

TOTAL ` 551500 `642500

Commission from colleges `620250.75 `822437.5

By Gross Receipts `1171750.75 `1464937.5

Table-B.2.4

Chart-B.2.4

e)Analysis of current financial statement:Horizontal analysis:

A simple approach to financial statement analysis, known as horizontal analysis, is to

calculate the amount and percentage changes from the previous year to the current year.

Horizontal analysis of the financial statements of IES is presented in the Table B.2.5 & TableB.2.6.

0

50000

100000

150000

200000

250000

2009-2010 ( ` )

2010-2011 ( ` )


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INDIAN EDUCATIONAL SERVICES: Comparative Profit & Loss Account

Year ending march 31st, 2009 2010

Increase (decrease)

Amount %

Gross receipts 1171750.75 1464937.5 293186.75 25.02125559

other receipts 176741 225767.5 49026.5 27.73917767

total cash inflow 1348491.75 1690705 342213.25 25.37748192

To office expenses 193058.75 210639 17580.25 9.106165869

To salary 334000 484790 150790 45.14670659

To conveyance 138792 145974 7182 5.174649836

To rent 84000 92400 8400 10

electricity 6974 7024 50 0.716948666

Printing & Stationary 12847 14236 1389 10.81186269

Telephone bills 68432 72964 4532 6.622632686

General Expenses& Bank charges 8718 10237 1519 17.42372104

postage & stamps 1150 1690 540 46.95652174

professional expenses 58975 63247 4272 7.243747351

vehicle repairs 62674 98158 35484 56.61677889

total 969620.75 1201359 231738.25 23.8998856

EBDT 378871 489346 110475 29.15900135

depreciation 111984 79481 -32503 -29.0246821

EBT 266887 409865 142978 53.57248573

Tax 27649.4932 42462.014 14812.5208 53.57248573

EAT 239237.5068 367402.986 128165.4792 53.57248573

Table-B.2.5

INDIAN EDUCATIONAL SERVICES: Comparative Balance Sheet.

year ending march 31st 2009 2010

Increase (Decrease)

Amount %


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Funds & Liabilities

Capital Account 548513 539414 -9099 -1.65884856

Secured Loans 124040 40680 -83360 -67.2041277

Total Funds 672553 580094 -92459 -68.86297626

Assets

Fixed Assets(net) 466125 386644 -79481 -17.0514347

Deposits & Advances

Rent Advances 70000 70000 0 0

Telephone Deposit 2000 2000 0 0

Current Assets

Sundry Debtors 112748 -112748 -100

Cash& bank balances 21680 121450 99770 460.1937269

Total Assets 672553 580094 -92459 343.1422922

Table-B.2.6

f) interpretationThe calculations shown in Table B.2.5 are revealing in many ways:

In 2010,

Sales increase by 25%.

Net profit jumped by 53.57%.

Other receipts increase by 27 % which results in increase of 25% in total cash flow.

The calculations shown in Table B.2.6 reveal that:

Decrease in assets by 343 %, still increase in profit is 53%. Good but not for longterm.

Fixed assets decreased by 17% which means company is decreasing in house

capacity.

Increase in bank balance is 460% quite appreciable. 100 % decrease in sundry debtors is worrisome, this means that the companys

customers are not much interested to buy the service or even on credit. If the decrease

is because of better collection and management of debtors then there is no problem.

NOTE : percentages taken in isolation can be misleading, particularly when the base is

small.


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Seeing the finding of the horizontal analysis I conclude that the business needs some

changes either in the form of expansion or technological changes or change in service or

may be adding more services to the existing service.

g) Objective of expansion: To expand the space of the office by making investment to take lease of new

expanded area.

Recruitment of new professionals to handle the business with efficiency.

To improve the quality service.

To increase the rate of online booking system.

To expand business to other states & metro cities.

h)Alternative plans :


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Alternative plan-1 :

Area expansion & new recruitment. Extra investment of` 30,00,000.

Network building with other colleges inside & outside the state.

Alternative plan-2:

Technological up gradation to increase online service.

Installation of more number of systems.

Recruitments of new professionals.

System network with banks & institutions.

Investment of`4,00,000.

Alternative-3:

Expansion of business to new metro cities.

New recruitment of professionals.

Networking with companies and MNCs in other states.

Investment of`60,00,000.

Alternative-4:

Entering into new service area (job consultancy service).

Expansion of office area.

Networking with institution & companies.

Recruitment of new professionals, BDO & relationship manager.

Initial investment of`40,00,000.


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Gross DEMAND expected under various alternatives (2011-2012):

COURSES ALTERNATIVE-1 ALTERNATIVE-2 ALTERNATIVE-3 ALTERNATIVE-4

MBA 100 105 200 90 20

BE/B.TECH 50 60 100 40 10

MCA 10 15 20 5 4

MBBS 12 14 24 10

OTHERS 80 90 160 75 15

MD/MS 3 4 6 3

Upto10+2 45 50 90 40

TOTAL 300 338 600 263 49

Table-B.2.7

Chart-B.2.5

ALTERNATIVE-1

ALTERNATIVE-30

100

200

300

400

500

600ALTERNATIVE-1

ALTERNATIVE-2

ALTERNATIVE-3

ALTERNATIVE-4


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Gross receipt expected under various alternatives(2011-2012):

COURSESALTERNATIVE-1 (

`) ALTERNATIVE-2(

`) ALTERNATIVE-3(

`) ALTERNATIVE-4(

`)

MBA 250000 262500 500000 225000 400000

BE/B.TECH 150000 180000 300000 120000 100000

MCA 25000 37500 50000 12500 60000

MBBS 60000 70000 120000 50000

OTHERS 120000 135000 240000 112500 150000

MD/MS 150000 200000 300000 150000

Upto10+2 67500 75000 135000 60000

`730000 `710000

TOTAL `822500 `960000 `1645000 `1440000

College

commission `1028125 `1200000 `2056250 `1800000

Gross

Receipts(servi

ce charges) `1850625 `2160000 `3701250 `3240000

Table-B.2.8


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ALTERNATIVE1

Assumptions:

Every year increase in gross receipts is 25%. Other receipts has been assumed 15 % of the gross receipts.

One receptionist (7 k/ month).

Another year one B.D.O (business development officer) added (20 k/month).

Increase in salary of B.D.O by 3k/month in the third yr. i.e. in 2014.

In 2015 one more employee added (7k/month).

In 2016 one employee added (10k/ month).

Rent remains constant for three consecutive yrs. Then it increases by 1k/month.

Other expenses remains somewhat constant with minute changes with time since

inflation increases

Calculation of depreciation:

Assumptions:

Any assets depreciation rate has been assumed to be fixed at 10 %.

Particulars value(2011-2012) depreciation(10%) 2012-2013 depreciation

furniture & fixtures 2000000 200000 1800000 180000

vehicle motor car 500000 50000 450000 45000

mobile instruments 20000 2000 18000 1800

computer 50000 5000 45000 4500

vehicle motorcycle 27752.4 2775.24 24977.16 2497.716

office equipments 150000 15000 135000 13500

A/C 50000 5000 45000 4500

LCDs 40000 4000 36000 3600

total 2797752.4 283775.24 2553977.16 255397.716

2013-2014 depreciation 2014-2015 Depreciation 2015-2016 depreciation

1620000 162000 1458000 145800 1312200 131220

405000 40500 364500 36450 328050 32805

16200 1620 14580 1458 13122 1312.2

40500 4050 36450 3645 32805 3280.5

22479.444 2247.944 20231.4996 2023.15 18208.35 1820.835

121500 12150 109350 10935 98415 9841.5

40500 4050 36450 3645 32805 3280.5


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32400 3240 29160 2916 26244 2624.4

2298579.444 229857.9 2068721.5 206872.1 1861849 186184.9

Table-B.2.9

IRR calculation of the expansion project (Alt.-1)

Year ending march 31st

, 2012 2013 2014 2015 2016

Gross receipts 1850625 2313281.25 2891601.56 3614501.95 4518127.44

other receipts 277593.75 346992.19 433740.23 542175.3 677719.11

total cash inflow 2128218.75 2660273.44 3325341.79 4156677.25 5195846.55

office expenses

(increase by 10% every yr) 231702.9 254873.19 280360.51 308396.559 339236.215

To salary 568790 808790 844790 928790 1048790

To conveyance 152000 160000 168000 177000 185000

To rent 168000 168000 168000 180000 180000

electricity 14000 14000 14000 14000 14000

Printing & Stationary 14236 15000 15200 15500 16000

Telephone bills 80000 80000 82000 84000 86000

General Expenses & Bank

charges 12000 14000 16000 18000 20000

postage & stamps2000 3000 3500 4000 5000

professional expenses 68000 73000 80000 85000 90000

vehicle repairs 100000 110000 120000 130000 140000

total 1410728.9

1700663.19 1791850.509 1944686.56 2124026.216

EBDT 717489.85 959610.25 1533491.28 2211990.69 3071820.33

depreciation 283775.24 255397.72 229857.944 206872.15 186184.9

EBT 433714.61 704212.53 1303633.33 2005118.54 2885635.43

Tax 44932.8336 72956.42 135056.41 207730.281 298951.831

EAT 388781.776 631256.12 1168576.92 1797388.26 2586683.60

Table-B.2.10


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Calculation of Npv & IRR:

Npv = c^t/(1+r)^tIntitial investment

Ct = cash flow at the end of the yeart.

n = duration of the project.

r = discount rate.

NPV = { 388781.776/(1.10)^1 + 631256.12/(1.10)^2 + 1168576.92/(1.10)^3 + 1797388.26/(1.10)^4+ 2586683.60/(1.10)^5 } {3000000}

= 1586873.757

IRR = ((388781.776/(1.23755^1))+( 631256.12/(1.23755^2))+( 1168576.92/(1.23755^3))+(

1797388.26/(1.23755^4))+(2586683.60/(1.23755^5)))

= 23.755%

Interpretation:

1. With the investment of ` 3000000, in the very first year itself profit is of

` 388781.776.

2. Considering all the assumption to be true, net profit expected from the company

after 5 years is around `2586683.60

3. Internal rate of return is also quite good which is around 24%.


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.

ALTERNATIVE-2

Assumptions:

Every year increase in gross receipts is 25%.

Other receipts has been assumed 15 % of the gross receipts.

In case of alternative -2 assumptions are completely based on existing final account.

Electricity charges and computers and other technical item purchase being added.


Assumptions:


Particulars value(2011-2012) Depreciation (10%) 2012-2013 depreciation

furniture & fixtures 15898.5 1589.85 14308.65 1430.865

vehicle motor car 236040.3 23604.03 212436.27 21243.627


computer 100000 10000 90000 9000


office equipments 51758.1 5175.81 46582.29 4658.229

A/C 10000 1000 9000 900

LCDs 10000 1000 9000 900

total 461449.3 47144.93 424304.37 42430.437

2013-2014 dep. 2014-2015 dep. 2015-2016 dep.

12877.785 1287.7785 11590.0065 1159.00065 10431.006 1043.10059

191192.64 19119.2643 172073.379 17207.3379 154866.04 15486.6041

16200 1620 14580 1458 13122 1312.2

81000 8100 72900 7290 65610 6561


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22479.444 2247.9444 20231.4996 2023.14996 18208.35 1820.83496

41924.061 4192.4061 37731.6549 3773.16549 33958.489 3395.84894

8100 810 7290 729 6561 656.1

8100 810 7290 729 6561 656.1381873.93 38187.3933 343686.54 34368.654 309317.89 30931.7886

Table-B.2.11

IRR calculation of the technological changes project (Alt.-2):

year ending march 31st 2012 2013 2014 2015 2016

Gross receipts 2160000 2700000 3375000 4218750 5273437.5

other receipts 324000 405000 506250 632812.5 791015.625

total cash inflow 2484000 3105000 3881250 4851562.5 6064453.125

office expenses


To salary 568790 808790 844790 928790 1048790

To conveyance & travelling 152000 160000 168000 177000 185000

To rent 90000 90000 90000 108000 108000

electricity 12000 12000 12000 14000 14000


Telephone bills 80000 80000 82000 84000 86000

General Expenses& Bank charges 12000 14000 16000 18000 20000

postage & stamps 1800 1850 1900 1900 1950


vehicle repairs 100000 110000 120000 130000 140000

total 1331292.9 1620013.19 1711050.509 1871586.56 2049976.216

EBDT 1152707.1 1484986.81 2170199.491 2979975.94 4014476.909

depreciation 47144.93 42430.437 38187.3933 34368.65397 30931.78857

EBT 1105562.17 1442556.373 2132012.098 2945607.286 3983545.121

Tax 114536.2408 149448.8402 220876.4533 305164.9148 412695.2745

EAT 991025.9292 1293107.533 1911135.644 2640442.371 3570849.846

Table-B.2.12

Npv= `7026155.549

Irr= 281.40%


54/70


Interpretation:

1. With the investment of`400000, as expected, in the very first year itself profit is

of`9911025.92.being in a service industry it is quite possible but continuation of

the same for 5 years is quite not possible or doesnt seem real.2. Considering all the assumption to be true, net profit expected from the company

after 5 years is around `3570849.853. Internal rate of return is quite high, in service industry it may be possible for one

or two years but not for longer duration, which is 281.40%.

ALTERNATIVE-3

Assumptions: Every year increase in gross receipts is 25%.

Other receipts have been assumed to be 15 % of the gross receipts.

Expansion of business is assumed to be in 4 major cities including head office.

All the expenditure is multiplied by 3 excluding head office expenditure.

First year one B.D.O (business development officer) added (20 k/month).

Increase in salary of B.D.O by 2k/month every yr.

Receptionists suppose to be in every city branch.

Rent remains constant for three consecutive yrs. Then it increases by

1k / month.

Other expenses remains somewhat constant with minute changes with time sinceinflation increases


55/70



Assumptions:


Particulars

new value in

other cities

value(2011-

2012)

Depreciation

(10%) 2012-2013 depreciation

furniture & fixtures 300000 315898.5 31589.85 284308.65 28430.865

vehicle motor car 1000000 1236040.3 123604.03 1112436.27 111243.627

mobile

instruments 50000 70000 7000 63000 6300

computer 90000 190000 19000 171000 17100

vehicle motorcycle 50000 77752.4 7775.24 69977.16 6997.716

office equipments 150000 201758.1 20175.81 181582.29 18158.229

A/C 30000 40000 4000 36000 3600

LCDs 30000 40000 4000 36000 3600

total 1700000 2171449.3 217144.93 1954304.37 195430.437

2013-2014 dep. 2014-2015 dep. 2015-2016 dep.

255877.785 25587.7785 230290.007 23029.00065 207261.0059 20726.10059

1001192.643 100119.264 901073.379 90107.33787 810966.0408 81096.60408

56700 5670 51030 5103 45927 4592.7

153900 15390 138510 13851 124659 12465.9

62979.444 6297.9444 56681.4996 5668.14996 51013.34964 5101.334964

163424.061 16342.4061 147081.655 14708.16549 132373.4894 13237.34894

32400 3240 29160 2916 26244 2624.4

32400 3240 29160 2916 26244 2624.4

1758873.933 175887.393 1582986.54 158298.654 1424687.886 142468.7886

Table-B.2.13


56/70


IRR calculation of the expansion project (Alt.-3):


Gross receipts 3701250 4626562.5 5783203.13 7229003.91 9036254.88

other receipts 555187.5 693984.375 867480.469 1084350.59 1355438.23

total cash inflow 4256437.5 5320546.875 6650683.59 8313354.49 10391693.1

office expenses


To salary 2515160 2539160 2563160 2587160 2611160


To rent 336000 336000 336000 432000 432000

electricity 28000 28500 29000 29500 30000


Telephone bills 230000 230000 238000 246000 254000


postage & stamps 4000 4500 5000 5500 6000


vehicle repairs 300000 330000 360000 400000 440000

total 4214862.9 4344033.19 4483020.51 4719556.56 4852396.22

EBDT 41574.6 976513.685 2167663.08 3593797.93 5539296.9

depreciation 217144.93 195430.437 175887.393 158298.654 142468.789

EBT -175570.33 781083.248 1991775.69 3435499.28 5396828.11

Tax -18189.08619 80920.22449 206347.962 355917.725 559111.392

EAT -157381.2438 700163.0235 1785427.73 3079581.55 4837716.72

Table-B.2.14

Npv = ` -338134.9851

Irr = 8.55%


57/70


Interpretation:

1. With the investment of`6000000, as expected, in the very first year itself profit

is in negative that means company is in loss of`157381.2438. it is quite obvious

that expansion of business might cost you something may be your profit in thebeginning.


after 5 years is around `4837716.723. Internal rate of return is low, which is 8.55 %, in comparison to other

alternatives. Quite possible because of high maintenance cost and low return in

the beginning.

ALTERNATIVE-4

Assumptions: Every year increase in gross receipts is 25%.

Other receipts has been assumed 15 % of the gross receipts.

Everything remains as alternative -1 since area expansion is also happens here.

Others are same as follows:

One receptionist (7 k/ month). Another year one B.D.O (business development officer) added (20 k/month).

Increase in salary of B.D.O by 3k/month in the third yr. i.e. in 2014.

In 2015 one more employee added (7k/month).

In 2016 one employee added (10k/ month).

Rent remains constant for three consecutive yrs. Then it increases by 1k/month.

Other expenses remains somewhat constant with minute changes with time sinceinflation increases.

Few things being added:

One extra vehicle.

Extra system.

Extra cabin

Extra telephone bill.

Increase in printing.

One marketing staff.


58/70



Assumptions:


Particulars value(2011-2012) Depreciation (10%) 2012-2013 depreciation

furniture & fixtures 2000000 200000 1800000 180000

vehicle motor car 700000 70000 630000 63000


computer 70000 7000 63000 6300


office equipments 150000 15000 135000 13500

A/C 50000 5000 45000 4500

LCDs 40000 4000 36000 3600

total 3022752.4 306275.24 2756477.16 275647.716

2013-2014 dep. 2014-2015 dep. 2015-2016 dep.

1620000 162000 1458000 145800 1312200 131220

567000 56700 510300 51030 459270 45927

20250 2025 18225 1822.5 16402.5 1640.25

56700 5670 51030 5103 45927 4592.7

22479.444 2247.9444 20231.4996 2023.14996 18208.3496 1820.834964


59/70


121500 12150 109350 10935 98415 9841.5

40500 4050 36450 3645 32805 3280.5

32400 3240 29160 2916 26244 2624.4

2480829.444 248082.944 2232746.5 223274.65 2009471.8 200947.185Table-B.2.15

IRR calculation of the area expansion project with expansion in

business adding another service (Alt.-4):


Gross receipts 3240000 4050000 5062500 6328125 7910156.25

other receipts 486000 607500 759375 949218.75 1186523.438

total cash inflow 3726000 4657500 5821875 7277343.75 9096679.688

office expenses(increase by 10% every yr) 265702.9 292273.19 321500.509 353650.5599 389015.6159

To salary 808790 1048790 1096790 1144790 1192790


To rent 168000 168000 168000 180000 180000

electricity 14000 14000 14000 14000 14000


Telephone bills 100000 110000 120000 130000 140000


postage & stamps 2000 2500 3000 3500 4000


vehicle repairs 120000 140000 160000 180000 200000

total 1782492.9 2101563.19 2232290.509 2382940.56 2528805.616

EBDT 1943507.1 2555936.81 3589584.491 4894403.19 6567874.072

depreciation 306275.24 275647.716 248082.9444 223274.65 200947.185

EBT 1637231.86 2280289.094 3341501.547 4671128.54 6366926.887

Tax 169617.2207 236237.9501 346179.5602 483928.9168 659613.6255


60/70


EAT 1467614.639 2044051.144 2995321.986 4187199.623 5707313.261

Table-B.2.16

Npv = `7677629.519

Irr = 54.52%

Interpretation:

1. With the investment of `4000000, still a huge amount, it shows a net profit of

`1467614.639, in the very first year itself. This high return is may be because of

the investment in other services which gives some return which increases the

total revenue.


after 5 years is around `5707313.2613. Internal rate of return is good and acceptable, which is 54.52 %, in comparison to

other alternatives.4. Since expansion is in other service as well as in area, this all round expansion

shows that this alternative plan going to stay for longer period with considerable

return.

i) Selection:Preferred option is Alternative4.


61/70


After analyzing the IRR of all the alternatives I prefer to select alternative-4. Alternative - 2

gives comparatively higher returns and more in the volume of profits, because in alternative-2

investment is very less and IRR is nearly 300%. It seems impossible but in service industry I

think if marketing & working strategies are good enough then you can reach this level.

Alternative-2 works on nearly negligible investment.Even though alternative -2 looks very profitable it can not run for a longer period because to

exist for a longer period you need to be a brand and for this you always need to expand the

business and infrastructure while alternative-2 shows returns without any expansion in

infrastructure and business so this is not going to survive for a longer period.

Thus practically alternative-4 is the more preferred option. It shows higher return after

alternative-2(which I m not considering) of IRR 60.80%. Alternative - 4 has all the required

materials to be a brand and to survive for a longer time in the market. Alternative -4 expands

its area and increase in infrastructural facilities. Even it increases its service boundary from

education consultancy to a job consultancy.

j) Sensitivity analysis:Alternative-2

Case-1

EAT decreased by 10%

EAT 991025.9292 1293107.533 1911135.644 2640442.371 3570849.846

EAT(-10%) 891923.3363 1163796.779 1720022.08 2376398.134 3213764.861

Table-B.2.17

Irr = 256%

Case-2

Total expenditure exceed by 10%

total 1331292.9 1620013.19 1711050.509 1871586.56 2049976.216

new total (+10%) 1464422.19 1782014.509 1882155.56 2058745.216 2254973.837

EAT 871688.8336 1147889.55

1757757.077

2472673.352

3387089.978

Table-B.2.18

Irr = 253.57%


62/70


Case-3

Total expenditure exceed by 10 % and then EAT decreased by 10% at the same time.

Table-B.2.19

Irr = 231.57%

Alternative-4

Case-1

EAT decreased by 10%

EAT 1467614.639 2044051.144 2995321.986 4187199.623 5707313.261

EAT(-10%) 1320853.175 1839646.029 2695789.788 3768479.661 5136581.935

Table-B.2.20

Irr = 48.922%

Case-2

Total expenditure exceed by 10%

total 1782492.9 2101563.19 2232290.509 2382940.56 2528805.616

new total (+10%) 1960742.19 2311719.509 2455519.56 2621234.616 2781686.177

new eat 1289365.349 1833894.825 2772092.935 3948905.567 5454432.7

Table-B.2.21

Irr = 38.54%

Case-3

total 1331292.9 1620013.19 1711050.509 1871586.56 2049976.216

new total (+10%) 1464422.19 1782014.509 1882155.56 2058745.216 2254973.837

EAT 871688.8336 1147889.55 1757757.077 2472673.352 3387089.978

EAT(-10%) 784519.9503 1033100.595 1581981.369 2225406.017 3048380.98


63/70


Total expenditure exceed by 10 % and then EAT decreased by 10% at the same time.

total 1782492.9 2101563.19 2232290.509 2382940.56 2528805.616

new total (+10%) 1960742.19 2311719.509 2455519.56 2621234.616 2781686.177

new eat 1289365.349 1833894.825 2772092.935 3948905.567 5454432.7

NEW EAT(-10%) 1160428.814 1650505.342 2494883.642 3554015.011 4908989.43

Table-B.2.22

Irr = 44.68%

k)Comparison of expected service mix after expansion underAlternative4:

Existing

Education consultancy:

Existing Gross service charges (2010) ` 1464937.50

Other receipts ` 225767.50

Net profit ` 409865.00

Expanded

Alternative -4(Education consultancy & job consultancy):

Gross service charges ` 3240000.00


64/70


Other receipts ` 486000.00

l) Facilities Needed for Alternative-4 Extra cabin for the job consultancy.

Extra furniture (table, chair, lockers etc).

Extra vehicles (car, motorbike).

Mobile phones and one landline connection.

One system.

A/c.

Man power (1 B.D.O, marketing professionals, P.R.O, 2 tele-callers, 1 receptionist,

office boy, driver etc ).

Courier service.


65/70


m) Technical requirements in alternative-4

Internet facilities (Wi-Fi).

SMS services.

Tele calling facilities.

Computer fundamental specialist.

n)Risk analysis: Management risk.

Sponsor risk.

Pre-construction delay.

Limited machine supplier availability.

Project execution methodology.

Tendering process.

Approvals.

Fund.

Funding risk.

Interest rate risk.


66/70


Operational risk.

Contacts .

Power availability.

Performance & maintenance of relation with clients and business partners.

Technological risk.

marketing risk.

Marketing.

Price risk.

Bargain risk.

Political risk.

Change of ruling party so change in education and admission system.

o)Findings: The service industry is really growing day by day. I find this industry very

profitable without or very negligible investment. One who really want to be an e

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