Business Plan:
PERFECT
Fitness & Health Training
Centre
Under the guidance of:
Dr. Mohd Anees
(Assistant Professor)
Submitted By:
Semester
ROHIT VERMA
MBA 4th
Roll No. 28
Department of Business Administration
University of Lucknow
Declaration
I, the undersigned, hereby declare that the stated work, Business Plan on Health and
Fitness Centre is my own work. The report has been prepared in partial fulfillment of requirements
towards the award of the degree of Masters of Business Administration, University of
Lucknow, Lucknow. I further declare that this dissertation has not been submitted earlier to any
other university or institution for the award of any other degree or diploma.
Place: Lucknow.
ROHIT VERMA
PERFECT Fitness & Health Training centre
Date:
ACKNOWLEDGEMENT
I express my deepest gratitude to Prof. A. Chatterjee (faculty of
commerce), HOD, Department of Business Administration,
University of Lucknow, for providing me an opportunity to work on
MBA Final semester project on Fitness India Health and Wellness
Training Centre Business Plan.
I wish to extend my heartfelt gratitude to my Project guide, Dr. Mohd
Anees who provided special inputs at every step and without whose
guidance this project would not have been completed.
Last but not the least, I would also thank my friends and parents who
supported me in this project.
Submitted By:
ROHIT VERMA
PERFECT Fitness & Health Training centre
MBA (MARKETING)
Semester- 4th
Roll No. 28
Table of Contents
S.NO
TOPIC
PAGE NO
1.
Business Plan outlines
2.
Expanded Plan outlines
3.
General Information
4.
Executive Summary
13
5.
Company Summary
14
6.
Services
18
7.
Marketing Analysis Summary
20
8.
Strategy Implementation Summary
23
9.
Management Summary
25
10.
Financial Analysis
27
11.
Business Ratios
34
PERFECT Fitness & Health Training centre
Health and Fitness Training Services Business
Business Plan: Fitness India Fitness and
Wellness Training Centre
MALL ROAD, KANPUR, UP.
Fitness training services have an excellent profitability level and growth rate. Our
competitive edge along with new training techniques puts Fitness India at the
forefront of training fitness and wellness services. We are living in an age where
good health is a must and the market for fitness training services is booming.
Business plan outlines
EXECUTIVE SUMMARY
COMPANY HISTORY
SERVICES
MARKET ANALYSIS SUMMARY
BUSINESS STRATEGY & IMPLEMENTATION
MANAGEMENT SUMMARY
FINANCIAL PLAN
PERFECT Fitness & Health Training centre
Expanded Plan Outline
1.0 Executive Summary
1.1 Objectives
1.2 Mission
1.3 Keys to Success
2.0 Company Summary
2.1 Company Ownership
2.2 Start-up Plan (for new companies)
2.3 Company Locations and Facilities
3.0 Products and Services
3.1 Products and Service Description
3.2 Competitive Comparison
4.0 Market Analysis Summary
4.1 Market Segmentation
4.2 Target Market Segment Strategy
4.2.1 Market Needs
4.2.2 Market Trends
4.2.3 Market Growth
4.3 Industry Analysis
5.0 Strategy and Implementation Summary
5.3 Competitive Edge
5.4 Marketing Strategy
5.4.1 Positioning Statements
5.4.2 Pricing Strategy
5.4.3 Promotion Strategy
5.4.4 Distribution Patterns
5.5 Sales Strategy
7.0 Management Summary
8.0 Financial Plan
8.1 Important Assumptions
8.2 Projected Profit and Loss
8.3 Projected Balance Sheet
8.4 Business Ratios
PERFECT Fitness & Health Training centre
GENERAL INFORMATION
Name of entrepreneur
: ROHIT VERMA
Proposed Project
: Fitness India Training Center (FTC)
Major Services
: Fitness and Wellness training
Proposed Location
: Mall Road, Kanpur, UP
Type of Organization
: Profit earning
ENTREPRENEUR PROFILE:
Educational Qualification: MBA (marketing)
Skills Required
: A good knowledge of fitness and wellness programs
TYPE OF PRODUCT/SERVICES
Type of the Project : Fitness training Service
DETAILS OF THE PROPOSED PROJECT: Service
Sr. No.
Particulars
Area Required
Total Value
Remarks
1.
Land & Building
950 sq. feet
14.75 lakh
Rent on L&B
Rent= Rs. 15,000 per month= Rs. 1, 80,000
PERFECT Fitness & Health Training centre
EQUIPMENTS (As per quotation), Total Cost = Rs. 8, 68,000
Sr. No Description
Nos.
Required
Rate
(Rs.)
Total Value (Rs.)
Machines
14
8 lakh
Computer
40,000
40,000
Printer
3000
3000
Electrical
Equipments
5000
Generator
20,000
20,000
PERFECT Fitness & Health Training centre
MISC. FIXED ASSETS, Total cost= Rs. 58,900
Sr. No Particulars
Nos.
Required
Rate
(Rs.)
Total Value (Rs.)
Tables
500
500
Chairs
250
1000
File Cabinets
1000
2000
Telephone
1200
2400
Desk
1000
2000
Advertisement
15000
Air Conditioners
18000
36000
MAN POWER (Salaries)
PERFECT Fitness & Health Training centre
Sr. No Particulars
No.
Salaries per Month Annual Expenses
(Rs.)
(Rs)
1.
Receptionist
2500
30,000
2.
Trainers
3000
36,000
3.
Assistant Trainer
1800
21,600
4.
Peon
1,500
18,000
5.
Security Guard
2,000
24,000
6.
Cleaner
500
7.
Nutrition and Dietitian 1
4500
54000
8.
Yoga Expert
3000
36000
Total
18,800
2,25,600
6000
UTILITIES- yearly, Total cost = Rs. 54,000
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10
Sr. No
Particulars
Expenditure (Rs.) Remarks
Power/Electricity
3,000
---
Diesel
15,00
----
Misc Expenditure- yearly, Total cost = Rs. 29,616
Sr. No
Particulars
Amount(Rs.)
Newspapers/ Magazines/Journals
12,000
Broadband services
8400
Insurance
9216
Project Cost
Fixed Cost (Equipments) = Rs. 9,26,900
Variable cost( Salaries, Utilities, Misc. Expenses) = Rs. 3,09,216
Total cost of project =
Rs. 12,36,116
Bank Loan Of Rs. 3,00,000 @ 15% from State Bank Of India.
Owners Capital ( approx) = Rs. 9,50,000
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11
Revenue = Rs. 12, 30,000 (projected)
Complete Fitness Program: Rs.1000x70 (persons) =Rs.70000 (per month)
Only Yoga Classes:
Rs. 500x40 (persons) =Rs.20000 (per month)
Only Massage Classes
Rs. 500x25 (persons) =Rs. 12500 (per month)
Other Expenditures
Interest on Loan@15% = Rs. 45,000 for 1st year and Rs. 30000 paid for
Principal amount of loan every year.
Depreciation on Equipments@12% = Rs. 1,04,160
Depreciation on ACs@20%= Rs. 7,200
Depreciation on [email protected]%= Rs. 825
Repairs & Maintenance = Rs. 10,000 per month= Rs. 1,20,000
Rent on Building = Rs. 1,80,000
Net Profit = Rs. 3,51,599
Executive Summary
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Fitness India Inc. will serve Kanpur based businesses, helping them to become
more productive, while lowering their overall costs.
Our business is based on two simple facts:
Healthy employees are more productive than chronically ill employees.
It costs less to prevent injuries or illnesses than to treat them after they occur
At Fitness India, we tie worker productivity directly to the health care issue. We
believe that traditional approaches to the current health care crisis are
misdirected. These traditional efforts are what we call reactive--that is, they wait
until after the worker has been stricken with illness or injury, and then pay for the
necessary treatments. Our approach, which emphasizes prevention and good
health promotion, is much more proactive.
By helping employees change their behavior patterns and choose more healthy
lifestyles, Fitness India will lower companies' health care expenditures, while
raising worker productivity. Health care expenditures will decrease due to
reduced medical insurance premiums, reduced absenteeism, reduced turnover
rates, reduced worker's compensation claims, reduced tardiness, shorter
hospital stays, etc.
The state of Indias health care crisis, coupled with current demographic
changes, threaten to not only exacerbate the crisis, but further erode worker
productivity as well. These environmental factors coupled with the local
competitive situation signal a favorable opportunity in this market. We feel the
time is right for Corporate Fitness.
Objectives
To alleviate occupational health disorders such a Stress, hyper tension and to
increase employee productivity by enhancing moods and work positive.
Provide wellness strategies/programmes to businesses in the Kanpur
area.
Create working relationships with 20 companies by the end of 2015.
Expand Corporate Fitness into Lucknow, Sitapur, Delhi, Gurgaon, and
Ghaziabad by the end of 2015.
Our Goal
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To provide progressive companies the resources and facilities to invest in the
long term health of their staff through Holistic health & fitness programs that are
sustainable and quantifiable.
Our Offer
Corporate memberships at special rates, flexibility in payment, Health education
seminars and On-site group classes. We also offer our expertise in corporate
wellness centre design & management.
Mission
Fitness India is a health service that helps businesses and individual workers
attain one of the greatest gifts of all--that of good health. Personal gains, such as
improved self-esteem and self-motivation, combined with measurable benefits
will create tremendous advantages for both the employer and the employee.
Keys to Success
Fitness Indias keys to success are:
Marketing services to companies and individuals.
Recruitment of experienced trainers and experts.
Dedication and hard work of the founders.
Raising productivity.
Lowering overall costs.
Company Summary
Company Ownership
Fitness India Training Centre is a sole proprietorship and operated by
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ROHIT VERMA, MBA (MARKETING)
Start-up Summary
Total cost of equipments = Rs. 8, 68,000
Total cost of Misc. Fixed Assets = Rs. 58,900
Company Location and Facilities
The Fitness India Training Center will be located at Mall Road, Kanpur, and is
self-owned. The suite is approximately 950 square feet and encompasses one
office, 2 rooms and a hall.
Fitness India is based on the belief that healthy employees are more productive
and efficient employees. For this reason, it provides wellness
services/programmes to businesses in the Kanpur area. This combines
promotion of health and exercise-related activities designed to facilitate positive
lifestyle changes in members of a company's work force.
The company began in Lucknow, founded by ROHIT VERMA, first generation
entrepreneur.
Corporate Health
Over the last decade or so, direct link between health and performance has
become obvious to corporations. Enough evidence exists to show that
corporations have begun to see significant returns when they take a proactive
approach to protecting the health of their team.
Corporations that value the role employee health plays in their productivity and
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15
prosperity can take advantage of the integrated services of FitnessIndia Training
Centre to optimize the health assets of their work force.
Employee health promotion programs have had tremendous success in
targeting specific risks to the overall health of the work force and dramatically
lowering those risks (and costs) through proven interventions.
Tackling the primary health issues jeopardizing the fitness of companies, our
services are the perfect opportunity to educate, motivate and mobilize
employees towards healthy lives. Seminars and individual sessions with our
dynamic team of health and behavioral specialists focus on lifestyle changes that
mitigate the risks associated with obesity, smoking, lack of exercise and poorly
handled stress.
Employer benefits
Increase employee satisfaction, as health benefits have been identified as
the single most important factor in employee morale
Increase productivity
Reduce costs: reduction in sick leave and absenteeism, expensive health
care utilization costs and injuries on and off the job
Strengthen corporations ability to recruit and retain quality workers
Employee benefits
Early screening for diseases
Promotion of healthy habits and lifestyle changes at home and in the
office
Training of individuals using proven and cost-effective methods
Support in developing and adhering to personal health enhancement
plans
A committed relationship that centers on patient advocacy and guidance
Improved compliance with clinician prescribed medications and
recommendations
Access to our network of medical specialists
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The best and latest gym equipment
FitnessIndia is a well-being Club that is unique and specialized to meet the
requirements of men and women who want to be in the best of health and
who take pride in their appearance.
At FitnessIndia, you will find world-class and the latest fitness equipment.
Which means the cardio-vascular equipment or the strength equipment that
you are using is likely to be similar to what athletes and sportspersons the
world over use. What's more, you will never have to wait your turn at a
machine simply because we have so many of them. Take a look at what we
have lined up for you:
Imported cardiovascular exercise equipment from global fitness
equipment leaders like Precor, Schwinn, Concept2, Paramount and
Nautilus
Cardiovascular equipment includes treadmills, upright and
recumbent bikes, wind resistance bikes, rowing machines, cross
trainers and steppers.
Imported strength training equipment from renowned names like
Paramount and Nautilus.
Our Training equipments list includes:
Pull Up Bar
Weight Bench
Aerobics Bike
Aerobics Equipment
Lifting Glove
Nylon Weight Belt
Leather Lifting Belt
Plated Dumbbells
Decline Dumbbell Bench
Fitness Machines
Flat Dumbbell Bench
Flat Weight Benches
Foot Massager
Manual Treadmill
Cardio Fitness Equipment
Yoga Kits
Yoga Mats
Yoga Fitness Mats
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Well thought out facilities and conveniences
We have spared no effort into making FitnessIndia perfect from the special
air flooring to the latest equipment, the finest trainers and the host of
amenities getting into shape with us will be a fun, rewarding and delightful
experience.
Shower and change room facility
Steam Room
Massage facility
Services
Services
Business ratios for Corporate Fitness indicate strong financial growth and an
impressive chance for investment opportunities, making expansion and further
development both very possible.
FitnessIndia program can include:
Cardio-Vascular Activity
Personal Training
Strength Training
Stress Management
Weight Reduction
Ergonomics
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Functional Fitness
Physiotherapy
Nutrition
Aerobics
Women's Health
Yoga
Payment Methods
Membership and individual payments must be paid to FTC in full, before the
person can take a training program. FTC will offer several payment options to
the members such as: Cash and personal checks.
Timing Schedule
Summers Timing:
Morning
Evening
5:30 am 9:30 am
5:00 pm 10:00 pm
Winter Timing
Morning
Evening
6:30 am 10:00 am
5:00 pm 9:00 pm
Sundays closed
Service Description
FitnessIndia provides wellness strategies/programmes to businesses in the Mall
Road, Kanpur. A wellness strategy is a long-term effort, combining both healthpromotion and exercise-related activities designed to facilitate positive lifestyle
changes in members of a company's work force.
FitnessIndia will work with a company's senior management to help it develop a
mission statement for its wellness programme. The client company's employees
will undergo a health-risk analysis, following which each employee will be given
the opportunity to meet with a health professional to design a personalized
health programme.
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Finally, Fitness India will furnish employee progress reports to senior
management with which to carry out the incentive programme and generally
monitor changes in the behaviour of its work force.
Competitive Comparison
FitnessIndia is not primarily a health club, as are the majority of competitors.
This organisation is in the business of health care cost management. The major
function is to work with client companies to implement wellness strategies. Many
employees will become benefactors of such strategies without ever visiting the
fitness facility, as exercise is only one facet of overall wellness.
FitnessIndia has a vested interest in each individual member of every wellness
programme, unlike many competitors. An integral part of this service is following
up and monitoring the individuals.
Fulfillment
All fitness machines are purchased from exercise equipment distributors, while
all medical equipment is bought from a reputable supply company.
Market Analysis Summary
Important demographic changes are taking place in India that point to the
importance of worker productivity in coming decades.
Males constitute 55% of the population and females 45%. Kanpur has an
average literacy rate of 68%, higher than the national average of 59.5%: male
literacy is 74%, and female literacy is 61%. In Kanpur, 14% of the population is
under 6 years of age.
There is large number of companies operating in Kanpur and having their
offices in Kanpur itself. The number of skilled workers available to fill new jobs
is decreasing, meaning that employers are facing more severe competition for
labour. Thus, the health and productivity of each employee becomes crucial to a
company's success.
There is a wellness revolution in India. A feel-good sense about fitness prevails.
Everyone wants to jump onto the bandwagon. With stress levels having gone up
due to sedentary lifestyles and occupations, people feel the need to exert
themselves physically. Whether it is to get rid of flab, develop bulging biceps, for
rehabilitation from an ailment, or for overall wellness, all roads seem to head to
the nearest fitness centre in the city. Gyms are getting more and more localized
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with small players too cashing in on the fitness fad. People do not want to travel
long distances to reach their gyms.
With gyms big and small mushrooming all over the country and patrons steadily
growing, the fitness industry is set for a big money spin. Most big players in this
sunrise industry cater to a niche market consisting of corporates and high
networth individuals. The annual membership at these high-profile centres is
anywhere between Rs 12,000 and Rs 60,000.
Here, the idea is not only to provide sophisticated imported gym equipment such
as treadmills, the accent definitely is on total fitness. More than being just a
business, fitness, industry players say, is a service-oriented concept. These
fitness centres, replete with gym, diet counselling, physiotherapy and
rejuvenation facilities, aim to be holistic solutions for wellbeing.
When people invest so much, they do so with trust. Fitness is not only about
workouts on high-end equipment, it's more to do with doing things the right way.
Personalised training and counselling is very important.
Target Market Strategy
Fitness India Training Centre (FTC) will focus on the following segments. These
segments are more interesting than other groups because they have the specific
training needs FTC intends to meet.
Stress Management Training for company employees.
Training individuals who have passion for body building. Training
individuals on basic of keeping themselves fit.
Training womens who want to lose their weight and shape their body.
Training people how to develop good eating habbits.
Training middle aged mens who have heart related troubles.
Young generation above the age of 18 year
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Market Segmentation
The market for FitnessIndia is not particularly segmented, as potential customers
include all businesses that offer their employees some type of medical benefits,
are experiencing escalating health care costs, and wish to more effectively
manage those costs.
FitnessIndia, however, segments its services for individual organizations.
FitnessIndia works with senior management to develop mission statements and
provide incentive plans, and with employees to design personalized health and
fitness programmes.
Service Business Analysis
Several small fitness facilities are currently in operation in the Lucknow area,
none of which cater their services to corporations. These organizations are
primarily exercise facilities with little emphasis on personalizing individual plans
to improve working performance.
Business Participants
Participants in the fitness industry include national, regional, and local
organisations. On the national level, companies such as Gold's Gym and the
YMCA offer exercise facilities and training programmes. At the regional level,
firms such as Better Bodies and Club 5 offer comparable services, while locally,
privately-owned businesses provide similar, but less extensive services to
exercise-seekers.
Distribution Patterns
Few fitness centres having good facilities are located in the Kanpur area. Those
in the downtown area are located in Residential areas close to parks and other
recreational activities. In neighbourhood locales, these establishments are often
found close to commercial places.
Main Competitors
The three main competitors for Corporate Fitness are:
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YMCA-market is lower-income families and/or students who want accessibility
and affordability of fitness facilities.
Gold's Gym-services are targeted toward those motivated and dedicated
individuals who workout five to seven times per week.
Better Bodies-aimed at casual fitness-seekers who do not workout with a high
intensity but still desire the status and recognition.
Strategy and Implementation Summary
Fitness India's strategy is based on raising worker productivity and lowering
overall costs for businesses. The most logical way to approach these factors is
through a healthy work force. Companies that implement wellness programmers
with Fitness India will be encouraged to look at the "big picture" regarding the
effects of its wellness programmes. Thus, one marketing goal is to persuade
more traditionally managed companies that wellness can work for them.
By tailoring services and developing customised programmes for companies and
individual employees, Fitness India will develop a reputation for quality customer
service.
Marketing Strategy
FitnessIndia will begin by targeting small- to medium-sized businesses in the
Mall Road & Gumti area. The first task is to convince senior executives of the
benefits and needs of wellness programmes. This will be accomplished by
aggressively pursuing interaction and relationships with business professionals
who would profit from using this service.
Pricing Strategy
Prices for using Fitness Indias services are lower than those of higher-end
fitness centres. An employee/individual choosing to utilise a Corporate Fitness
centre will pay Rs 1000 as monthly fee. For each employee/individual
membership charges are Rs 10000 annually and Rs 5000 half yearly in the
general health and wellness programme, regardless of whether or not they use
the fitness facility. The prices reflect the quality of the equipment and service.
Promotion Strategy
Following initial promotional activity through advertisements in newspapers,
magazines and radio, Fitness India will significantly reduce its promotional
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efforts in the hope that word-of-mouth will attract potential clients. Promotional
activity will still be utilized through these media outlets, but only minimally.
Sales Strategy
We will link our training and development to business strategy by understanding
what our customers hope to achieve and dedicating training and development to
the fulfillment of those goals. Let our customer demand shape our training and
development offerings by providing his core requirements to train individuals in
that particular field. We will also conduct ongoing needs assessments across the
organization aimed at making training more strategic and providing training that
has more impact. FTC will offer more than training to develop employee skills.
1. Maintaining intense focus on our customers, their issues, and their needs.
2. Being systematic in our efforts to meet those needs efficiently, consistently,
and reliably.
Be entrepreneurial, live with risk. Structure training to provide exactly what is
needed. Divide customers into segments and provide each segment appropriate
forms of value. Document customers expectations. Write results contracts
specifying value to be delivered, at what price, customers role in achieving
targeted results. Offer service guarantees.
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Management Summary
Personnel Plan
FitnessIndia is currently a small organization headed by Rohit Verma, the
CEO/Director of Sales and Marketing oversees the activities of the Director of
Health and Wellness Programmes.
Receptionist/Secretary, will handle all incoming calls and walk-ins, mail,
correspondence, data entry, filing, scheduling, and play a supportive role to the
Director.
Trainer/Assistant Trainer will be in charge of helping members in the fitness
centre during training sessions, assist with development of proper training
manuals, provide training in absence of Director, maintain maintenance of
equipment, and play a supportive role to the Director.
1 Nutrition and Dietetion expert and 1 Yoga expert will be helping members in
developing healthy eating habbits as well as provide training how to control
stress.
1 Guard, cleaner and Peon will provide their services.
As the firm grows and expands, more positions will be added as needed.
Organizational Structure
There are currently two divisions of FitnessIndia Health and Wellness" and
"Finance and Administration." With the growth of the company, more divisions
will be created as the demand for services increases.
Management Team
ROHIT VERMA: CEO and Director of Sales and Marketing. He is
responsible for providing leadership, direction, and control for all aspects of
the company's activities in order to realize optimum profits compatible with
the best long- and short-term interests of the employees, consumers, and
public.
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Management Team Gaps
The gaps of Fitness Indias management team include:
Lack of experience in the fitness industry.
Minimal expertise in areas of finance and accounting.
Strong desire for financial prosperity immediately with little patience for minimal
profitability.
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Financial Plan
Salaries and rent are the two major expenses, while depreciation is another
significant cost that will increase as the company develops. Although the
purchasing of fitness, medical, and office equipment is expensive, constant
replacement will be needed to minimise depreciation costs and maintain a
competitive edge.
In order to maintain steady gross margins, salaries and advertising expenses
are not likely to increase within the first two years of operation, unless cash
flows significantly increase.
Important Assumptions
Three assumptions for FitnessIndia are:
A constantly growing economy without any major recession or boom.
No unpredictable changes in fitness, medical, or office equipment.
No major national or global events that threaten the stability and health of the
country and its citizens.
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Projected Profit & Loss Account
FITNESSINDIA FITNESS AND WELLNESS TRAINING CENTRE,
KANPUR
PROJECTED PROFIT & LOSS ACCOUNT FOR YEAR ENDING
31ST MARCH, 2012
PARTICULARS
AMOUNT
To Rent Exp.
30,000
To Salary Exp.
To Conveyance charges
To Broadband Charges
To Advertisement Exp.
To Insurance Exp.
To Telephone Exp.
To Electricity & Diesel Exp.
To Depreciation on Equipments
To Depreciation on Furniture
To Depreciation on A.C.
To Repairing Charges
To Interest Paid
To Net Profit
1, 80,000
AMOUNT
By Income from fee
12,
2, 25,000
18,000
8,400
50,000
9,216
24,000
54,000
1, 04,160
825
7,200
1, 20,000
75,000
3, 54,199
Total
Working notes:
Net Profit =
Income tax @30% =
Profit After Tax =
PARTICULARS
8, 75,801
Total
12, 30,000
Rs. 3,54,199
Rs. 1,06,258
Rs. 2,47,941
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FITNESSINDIA FITNESS AND WELLNESS TRAINING CENTRE,
KANPUR
PROJECTED BALANCE SHEET AS ON 31ST MARCH, 2012
LIABILITIES
AMOUNT
Capital Account:
Opening Balance
Add: - Net Profit
AMOUNT
9,50,000
2,47,941
1197941
Loans Liability
6,66,405
Bank Loan A/c
AMOUNT AMOUNT
Fixed Assets
Furniture
7075
Equipments 7,63,840
A.C.
28,800
7,99,715
Cash & Bank
2,70,000
Total
Working notes:
Bank Loan
ASSETS
Balance
14,66,120
Total
14,66,120
3,00,000 30000= Rs 2,70,000
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FITNESS INDIA FITNESS AND WELLNESS TRAINING CENTRE,
KANPUR
PROJECTED PROFIT & LOSS ACCOUNT FOR YEAR ENDING
31ST MARCH, 2013
PARTICULARS
AMOUNT
To Rent Exp.
80,000
To Salary Exp.
To Travelling Exp.
To Broadband Charges
To Advertisement Exp.
To Insurance Exp.
To Telephone Exp.
To Electricity & Diesel Exp.
To Depreciation on Equipments
To Depreciation on Furniture
To Depreciation on A.C.
To Repairing Charges
To Interest Paid
To Net Profit
1, 98,000
PARTICULARS
By Income from fee
AMOUNT
13,
2, 47,500
24,000
12,000
65,000
9,216
26,400
59,400
91,660
701
5,760
1, 30,000
70,500
4, 39,863
Total
13, 80,000
Total
13, 80,000
Working Notes:
Net Profit
Income Tax@30%
Profit After Tax
Rs. 4, 39,863
Rs. 1, 31,960
Rs. 3,07,903
RETAINED EARNINGS = Previous Year Profit + Current Year Profit
=Rs 2,46,120
+ Rs. 3,07,903
=Rs. 5,54,023
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FITNESSINDIA FITNESS AND WELLNESS TRAINING CENTRE,
KANPUR
PROJECTED BALANCE SHEET AS ON 31ST MARCH, 2013
LIABILITIES
AMOUNT
AMOUNT
Capital Account:
Opening Balance
9,50,000
Add: Retained Earnings 5,54,023
ASSETS
AMOUNT AMOUNT
Fixed Assets
Furniture
6,375
Equipments 6,72,180
A.C.
23,040
7,01,
595
1504023
Current Assets
Cash & Bank
2,40,000
Balance
Loan Liability
10,42,428 Bank Loan A/c
Total
17, 44,023
Total
17,
44,023
PERFECT Fitness & Health Training centre
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FITNESSINDIA FITNESS AND WELLNESS TRAINING CENTRE,
KANPUR
PROJECTED PROFIT & LOSS ACCOUNT FOR YEAR ENDING
31ST MARCH, 2014
PARTICULARS
AMOUNT
To Rent Exp.
60,000
To Salary Exp.
To Travelling Exp.
To Broadband Charges
To Advertisement Exp.
To Insurance Exp.
To Telephone Exp.
To Electricity & Diesel Exp.
To Depreciation on Equipments
To Depreciation on Furniture
To Depreciation on A.C.
To Repairing Charges
To Interest Paid
To Net Profit
PARTICULARS
2, 17,800
By Income from fee
AMOUNT
15,
2, 72,250
36,000
12,000
80,000
9,216
29,040
65,340
80,661
596
4,608
1, 50,000
66,000
5, 36,489
Total
15, 60,000
Total
15,
60,000
Working Notes:
Net Profit
= Rs.
Income tax @ 30% = Rs.
Profit after tax
= Rs
5,36,490
1,60,947
3,75,543
RETAINED EARNINGS = Rs 5,54,023+Rs 3,75,543= Rs 9,29,566
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FITNESSINDIA FITNESS AND WELLNESS TRAINING CENTRE,
KANPUR
PROJECTED BALANCE SHEET AS ON 31ST MARCH, 2014
LIABILITIES
AMOUNT
AMOUNT
Capital Account:
Opening Balance 6,16,655
Add:
retained Earnings 9,29,566
15,46,221
Less: drawings
3,60,000
ASSETS
AMOUNT AMOUNT
Fixed Assets
Furniture
Equipments
5,780
5,91,520
A.C.
18,432 6,15,732
11,86,221
Loan Liability
Loan
2,10,000
Total
13,96,221
Current Assets
Cash & Bank
Balance
Total
PERFECT Fitness & Health Training centre
7,80,489
13,96,221
33
Business Ratios
Net profit ratio
= (Profit after tax / Sales) * 100
=(246120/1228000)*100
= 20%
Return on total investment = (Profit after Tax / Total
Investment)* 100
= (246120/1466120)*100
= 16.78%
Total Assets Turn over ratio= sales/total assets
=1228000/1466120
= 0.83
Return on total Asset
= (EBIT/Total Assets)*100
=(351600/1466120)*100
=24%
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Break Even Point Analysis
Contribution= Sales- Variable cost
= 12,28,000- 3,92,216
= Rs. 8,35,784
Break Even Point= (Fixed Cost x Sales)/Contribution
= ( 9,26,900 x 1,22,800)/ 835784
=Rs.13,61,875 (approx)
PERFECT Fitness & Health Training centre
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PERFECT Fitness & Health Training centre
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