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CASE STUDY

A Big conglomerate which is operating in different sectors like Manufacturing, Travel, Mining, and Information Technology is planning to venture into Education sector. Chris, the chairman of business group has a vision to set up Institutes which are schools (Pre-Primary, Primary, and Secondary), colleges (Undergraduate) and Training places (For competitive exams and IT skill development) across different cities across India. Since Chris belongs to Bengaluru and his company headquarters is in same city, he wants to start the new business line from this city and in 3 years time he wants to expand it to other tier 1 cities. He expects to have at least 100 institutes by end of 5th year.

Sources of Funds The Business group is committed to provide INR 50 crores for this project as equity spread across 3 years. For remaining funds Chris is planning to approach Banks to provide debts.

Revenue Sources Fee from students, Grants from Business group Trust, Donations

Model:

Please build a model for a period of 10 years with at least the first three years broken down into quarters. Please provide the necessary performance indicators to be measured for checking the health of this sector.

Please make necessary assumptions wherever necessary apart from the above and state them clearly.

Model should include 3 basic financial statements i.e. P&L, Cash flow statement and Balance sheet and any other required schedules.

Please see below the expectations from this exercise:

Easy to use Design the model for the user to navigate easily.

Easy to understand The user should be able to easily understand the model

Reliable The model should give out reliable answers for any inputs

Other instructions

Clearly defined inputs, calculations and outputs

No hard coding

Cells should have appropriate units (where even applicable)

Color coding of different types of cells