FINANCIAL ANALYSIS

AFTERSCHO☺OL
– 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.

AFTERSCHO☺OL
Centre for social entrepreneurship
Bikaner M: 9414430763
tkjainbkn@yahoo.co.in
www.afterschool.tk, www.afterschoool.tk
www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
 Present share price is Rs. 60. after
6 months it will be 75 (with
probability .7) or 50 (with
probability .3), call options available
after 6 month is at price 65. what
should you do ?
• Call option = an option that you can buy a
share .
• Hedge ratio = (spread of possible option
pricies / spread of possible stock prices).
www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
 Solution . . .
• Spread of possible option prices = (expected
price – call price)
• = (75 – 65 ) = 10
Or (50 – 65) = -15 (we will not exercise call option)
Spread of possible share prices
= 75 – 50 = 25
= 10 /25 = .4
It means that you should buy .4 shares in a long
position for every 1 share that you sell short.
(ans).
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 In the previous question, what is
the Expected Value of the option
price?
Formulae = (spread of option prices)
*probabilities.
We have two spreads = 10 and Zero
Probability associated with 10 is .7 and
probability associated with Zero ix .3.
Thus answer is : (10*.7) + (Zero *.3)
= 7 answer.

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 You will receive $ 1 million after 6
months as receivables. You have
two options, go for factoring at 2%
discount and 20% interest rate or
go for forfaiting for 20% discount
rate. Possibility of bad debt is 2%
and your own cost of funds is 25%.
Which option will you exercise and
why?
• The cost in first option is 1.2 Lakhs, but in
second option
www.afterschoool.tk your cost
AFTERSCHO☺OL's is 1.0
MATERIAL lakhs.
FOR PGPSE PARTICIPANTS
 Solution . .
• Factor is also undertaking responsibility
for bad debt recovery, thus in this case
you are ensured. Your probability of bad
debt is also 2%, thus in this case both the
option (factoring and forfaiting are equally
good). If you don’t go for these, your own
cost is 25%, which means, you will suffer
by 1.25 Lakhs. Thus you may have any of
the two options.
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 My current assets are 3 Lakhs, my
inventory is 1 Lakh. My current
liability is 1.5 Lakh, what is my
quick ratio?
• (current assets – inventory)/ current
liability
• = 2/1.5 = 1.333 answer.

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Share price of my company is 240,
but face value is 10, what is my MB
Ratio ?

• MB = Market to book ratio

• = 240 / 10 = 24 answer.

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 In the previous quesiton, my
dividend is Rs. 12 per share , what
is dividend yield?

• DPS / Market price

= 12/240 =.05 answer

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In the previous quesiton, we have 1
lakh shares and no debt, if we want
to buy similar plant and set up, it
will cost us 10 crores, what is Tobin
Q Ratio?
• = Market value of firm / Replacement cost
of assets
• = 24000000/100000000
• =.24 answer.

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 ABOUT AFTERSCHO☺OL
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 AFTERSCHO☺OL 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
AFTERSCHO☺OL
• 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
• 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
material

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 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
• AFTERSCHO☺OL 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 AFTERSCHO☺OL
• 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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