Executive Summary

Business Plan:

PERFECT

Fitness & Health Training Centre

Under the guidance of: Dr. Mohd Anees

(Assistant Professor) Submitted By: ROHIT VERMA MBA 4th Semester 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 VERMADate: 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 MBA (MARKETING)

Semester- 4th Roll No. 28Table of ContentsS.NO TOPIC PAGE NO1. Business Plan outlines

5

2. Expanded Plan outlines

6

3. General Information

7

4. Executive Summary

13

5. Company Summary

14

6. Services 187. Marketing Analysis Summary 208. Strategy Implementation Summary 239. Management Summary 25 10. Financial Analysis 27 11. Business Ratios

34Health 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

Expanded Plan Outline1.0 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

GENERAL INFORMATION

Name of entrepreneur: ROHIT VERMAProposed Project : Fitness India Training Center (FTC)

Major Services

: Fitness and Wellness training Proposed Location : Mall Road, Kanpur, UPType of Organization: Profit earning

ENTREPRENEUR PROFILE:Educational Qualification: MBA (marketing)

Skills Required : A good knowledge of fitness and wellness programs TYPE OF PRODUCT/SERVICESType of the Project: Fitness training Service

DETAILS OF THE PROPOSED PROJECT: ServiceSr. No.ParticularsArea RequiredTotal ValueRemarks

1.Land & Building950 sq. feet14.75 lakhRent on L&B

Rent= Rs. 15,000 per month= Rs. 1, 80,000EQUIPMENTS (As per quotation), Total Cost = Rs. 8, 68,000Sr. NoDescriptionNos. RequiredRate (Rs.)Total Value (Rs.)

1Machines14-8 lakh

2Computer140,00040,000

3Printer130003000

4Electrical Equipments--5000

6Generator120,00020,000

MISC. FIXED ASSETS, Total cost= Rs. 58,900Sr. NoParticularsNos. RequiredRate (Rs.)Total Value (Rs.)

1Tables1500500

2Chairs42501000

3File Cabinets210002000

4Telephone212002400

5Desk21000 2000

6Advertisement--15000

7Air Conditioners21800036000

MAN POWER (Salaries)Sr. NoParticularsNo.Salaries per Month (Rs.)Annual Expenses (Rs)

1.

2.

3.

4.

5.

6.

7.

8.Receptionist

Trainers

Assistant TrainerPeon

Security Guard

Cleaner

Nutrition and Dietitian

Yoga Expert

Total 1

1

1

1

1

1

1

1

8

2500

3000

1800 1,500

2,000

500 4500

3000

18,80030,000

36,000

21,600 18,000

24,000

6000 54000

360002,25,600

UTILITIES- yearly, Total cost = Rs. 54,000

Sr. NoParticularsExpenditure (Rs.) Remarks

1Power/Electricity3,000---

2Diesel 15,00----

Misc Expenditure- yearly, Total cost = Rs. 29,616Sr. NoParticularsAmount(Rs.)

1Newspapers/ Magazines/Journals12,000

2Broadband services8400

3Insurance9216

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. 9,50,000Revenue = 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 furniture@10.5%= Rs. 825 Repairs & Maintenance = Rs. 10,000 per month= Rs. 1,20,000

Rent on Building = Rs. 1,80,000 Net Profit = Rs. 3,51,599Executive SummaryFitness 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.

ObjectivesTo 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

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.

MissionFitness 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 SuccessFitness 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 SummaryCompany Ownership

Fitness India Training Centre is a sole proprietorship and operated byROHIT VERMA, MBA (MARKETING)Start-up SummaryTotal cost of equipments = Rs. 8, 68,000Total cost of Misc. Fixed Assets = Rs. 58,900Company 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 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 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 GloveNylon Weight Belt Leather Lifting BeltPlated Dumbbells Decline Dumbbell Bench Fitness Machines Flat Dumbbell Bench Flat Weight Benches Foot Massager Manual Treadmill Cardio Fitness EquipmentYoga KitsYoga MatsYoga Fitness MatsWell 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

ServicesBusiness 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

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 5:30 am 9:30 am

Evening 5:00 pm 10:00 pm

Winter Timing

Morning 6:30 am 10:00 amEvening 5:00 pm 9:00 pm

Sundays closedService DescriptionFitnessIndia provides wellness strategies/programmes to businesses in the Mall Road, Kanpur. A wellness strategy is a long-term effort, combining both health-promotion 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.

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 ComparisonFitnessIndia 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.

FulfillmentAll 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 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

Market SegmentationThe 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 AnalysisSeveral 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 ParticipantsParticipants 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 PatternsFew 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 CompetitorsThe three main competitors for Corporate Fitness are:

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 StrategyFitnessIndia 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 StrategyPrices 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 StrategyFollowing initial promotional activity through advertisements in newspapers, magazines and radio, Fitness India will significantly reduce its promotional 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 StrategyWe 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.

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 StructureThere 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 TeamROHIT 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.

Management Team GapsThe 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.

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 AssumptionsThree 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.

Projected Profit & Loss AccountFitnessIndia Fitness and Wellness Training CENTRE, KANPURProjected PROFIT & lOSS ACCOUNT FOR YEAR ENDING 31ST MARCH, 2012PARTICULARS AMOUNT PARTICULARS AMOUNTtoooo Rent Exp. 1, 80,000 By Income from fee 12, 30,000 To Salary Exp. 2, 25,000To Conveyance charges 18,000To Broadband Charges 8,400

To Advertisement Exp. 50,000

To Insurance Exp. 9,216

To Telephone Exp. 24,000

To Electricity & Diesel Exp. 54,000

To Depreciation on Equipments 1, 04,160

To Depreciation on Furniture 825

To Depreciation on A.C. 7,200

To Repairing Charges 1, 20,000

To Interest Paid

75,000

To Net Profit 3, 54,199 Total 8, 75,801 Total 12, 30,000

Working notes:Net Profit = Rs. 3,54,199Income tax @30% = Rs. 1,06,258Profit After Tax = Rs. 2,47,941FitnessIndia Fitness and Wellness Training CENTRE, KANPURPROJECTED BALANCE SHEET AS ON 31ST MARCH, 2012LIABILITIES AMOUNT AMOUNT ASSETS AMOUNT AMOUNT

Capital Account: Fixed Assets

Opening Balance 9,50,000 Furniture 7075

Add: - Net Profit 2,47,941 Equipments 7,63,840 1197941 A.C. 28,800 7,99,715Loans Liability Cash & Bank 6,66,405Bank Loan A/c 2,70,000 Balance

Total 14,66,120 Total 14,66,120 Working notes:Bank Loan = 3,00,000 30000= Rs 2,70,000

Fitness India Fitness and Wellness Training CENTRE, KANPURProjected PROFIT & lOSS ACCOUNT FOR YEAR ENDING 31ST MARCH, 2013PARTICULARS AMOUNT PARTICULARS AMOUNTtoooo Rent Exp. 1, 98,000 By Income from fee 13, 80,000 To Salary Exp. 2, 47,500To Travelling Exp. 24,000To Broadband Charges 12,000

To Advertisement Exp. 65,000

To Insurance Exp. 9,216

To Telephone Exp. 26,400

To Electricity & Diesel Exp. 59,400To Depreciation on Equipments 91,660To Depreciation on Furniture 701To Depreciation on A.C. 5,760

To Repairing Charges 1, 30,000To Interest Paid

70,500To Net Profit 4, 39,863 Total 13, 80,000 Total 13, 80,000Working Notes: Net Profit Rs. 4, 39,863Income Tax@30%

Rs. 1, 31,960Profit After Tax Rs. 3,07,903RETAINED EARNINGS = Previous Year Profit + Current Year Profit

=Rs 2,46,120 + Rs. 3,07,903

=Rs. 5,54,023

FitnessIndia Fitness and Wellness Training CENTRE, KANPURPROJECTED BALANCE SHEET AS ON 31ST MARCH, 2013LIABILITIES AMOUNT AMOUNT ASSETS AMOUNT AMOUNT

Capital Account: Fixed Assets

Opening Balance 9,50,000 Furniture 6,375

Add: Retained Earnings 5,54,023 Equipments 6,72,180 A.C. 23,040 7,01, 595 1504023 Current AssetsLoan Liability Cash & Bank 10,42,428 Bank Loan A/c 2,40,000 Balance Total 17, 44,023 Total 17, 44,023 FitnessIndia Fitness and Wellness Training CENTRE, KANPURProjected PROFIT & lOSS ACCOUNT FOR YEAR ENDING 31ST MARCH, 2014PARTICULARS AMOUNT PARTICULARS AMOUNTtoooo Rent Exp. 2, 17,800 By Income from fee 15, 60,000 To Salary Exp. 2, 72,250To Travelling Exp. 36,000To Broadband Charges 12,000

To Advertisement Exp. 80,000

To Insurance Exp. 9,216

To Telephone Exp. 29,040

To Electricity & Diesel Exp. 65,340

To Depreciation on Equipments 80,661To Depreciation on Furniture 596To Depreciation on A.C. 4,608To Repairing Charges 1, 50,000

To Interest Paid

66,000To Net Profit 5, 36,489 Total 15, 60,000 Total 15, 60,000Working Notes: Net Profit = Rs. 5,36,490Income tax @ 30% = Rs. 1,60,947

Profit after tax = Rs 3,75,543

RETAINED EARNINGS = Rs 5,54,023+Rs 3,75,543= Rs 9,29,566

FitnessIndia Fitness and Wellness Training CENTRE, KANPURPROJECTED BALANCE SHEET AS ON 31ST MARCH, 2014LIABILITIES AMOUNT AMOUNT ASSETS AMOUNT AMOUNT

Capital Account: Fixed Assets

Opening Balance 6,16,655 Furniture 5,780

Add: retained Earnings 9,29,566 Equipments 5,91,520 15,46,221

Less: drawings 3,60,000 A.C. 18,432 6,15,732 11,86,221 Loan LiabilityLoan 2,10,000 Current Assets

Cash & Bank 7,80,489 Balance

Total 13,96,221 Total 13,96,221Business 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%

Break Even Point AnalysisContribution= 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)

PAGE PERFECT Fitness & Health Training centre30