Project Rahul

A study on
Cost Benefit Analysis of Exhibition Asia
Rahul Panchaman
Registration Number
:
Introduction
Chapter 1
Introduction
Industry profile
Real estate is one of the commercial as well as industrial businesses which have lots of
opportunity in today business world and it is also an integral part of business. Real estate has lot
benefits in the way of positive as well as negative aspects. In today s era of competitive business
many of the customers and investors are investing in real estate for a better return in their
investing. the researchers found that the real estste business have both positive as well as
negative component they raise your money and also degrade your money.
Some of the classification of Real estate is as follows:
The real estate business has been classified into major types they are
Class A: it represent on the basis of age quality infrastructure and location.
Class B: it is mainly focused on restoration hotels motels.
Class C: it is mainly located in less attractive way; it is mainly focused on maintenance.
The real estate can divided into two types they are:
Commercial real estate
Industrial real estate
Commercial real esate
Commercial real estate is one of the major type of real estate. It is mainly for business purpose.
Its main objective is to make profit. Some of the examples of we can say that shopping malls
office buildings, buildings, hotels, restaurants [KFC MC DONALADS] .
Many of the investors and businessman are mostly investing in Real estate for a better return and
to raise their money in less amount of time. In commercial real estate major business occupy the
buildings and collects rent from each business that operates there. There are many firms in the
reak estate business some of them are Jones Lang La Salle, Cushman & wakefield, newmark
Grubb Knight Frank. The speacialised knowledge of a commercial real estate company is helpful
as the rules and regulations governing such property vary by state, country, muncipalty and
industry and size.
Advantages of commercial Real Estate:
the building is occupied by investors or the businessman in return of longterm satabilty so it
gives a considerable amount cash flow stabilty.
It gives long term lease contracts in relation to other type if real estate
It gives atreacting lease leasing rate.
It gives an extraordinary satisfaction of returns to and considerable cash flow.
Today in this present era of business, investing in Real estate will give lot of returns to the
investors. When they sell in the market it doubles the benefit of the investors or the building
holder. The investors get their returns on the basis of rental basis from the lessee.
The real estate business have some major disadvantages also some of them are as follows:
Rules and regulation of the government.
High level of maintenance responsibility of commercial properties may have very requirement to
the costly return ability.
2.industrial real estate

Industrial real estate includes all levels buildings and infrastructure whichb are already used or
not used for industrial or manufacturing activities.
The activities are:
Go downs /warehouse
It stores someindustrial related and office related items which is tangible in nature rather than
service related items.
Industrial Real Estate are majorly divided into three types they are:
Small
Large ‘
Enormous
Small industrial sites include single or double stories building zoned for industrial use. These
have enormous interior space. It is a mixture of go downs and office space.
Large industrial propertied includes large or big warehouses or go downs and factories that are
usually made to to store the industrial products or goods.
The enormous industrial space include logistics and distribution centers that hold andthen
distribute the finished goods and directly sells to customers.
The main aid of investing in industrial real estate are as follows:
The annual return and investment in investing in industrial real estate is high.
It has low maintenance on buildings and factories.
The cost of tenants are mostly paid by the owner its self so it is more beneficial.
The risks which include in the industrial real estate are as below:
According to the market condition industrial estate is more vulnerable therefore the vacancy of
risk is quite higher.
It is expensive to invest because banks usually demands for a bigger deposits and interest rates
will often be higher than for a loan for industrial residential property.
Lack of getting the location if the location are more flexible and located in a good space it will
be more attractive.
There are several real estate association for some of them went for IPOs some place around out
of them some are went for IPOs around 2010 – 2014. a few asscocialtion just to linked to the
international markets, like alternative investment market pf London stock echange, using
creative structures for raising sources.
India a developing country the real estate business has been expanded and upsurge continually
expanded interest for lodging and different advancements has constrained this some what
directed segment to bow down to the request and weakness of all its partners while the world is
sitting tight ata noteworthy cost remedy in the Indian real estate market place, the provide part of
the industry is as of now arranging the following 20 years of improvement. the inquiry is that
the managing a more valid framework for this billion dollar industry.
Real estate speculation issue in made of two limits:
To infer a wage.
To increase the value of Real Estate in trust.
Real Esate procedure might be encouraged on:

The offer and purchasing of an area.
For the development of a particular area.
The determination of giving cash upon home loan.
About the market size of real estate in the market

In the business of real estate our country accomplish the GDP around 5-6 percent.
According to the development the real estate accomplish around 112% from 2007- 2020
The retail agreeableness business Real Estate additionally expanding genuinely their giving high
required association to India developing needs.
The role of real estate growth in Indian economy
In the world of Globalization and privatization real estate has become one of the important part
of its development in investment, it helps in the infrastructure of our nation and also trade and
industrial activities. The real estate company has connection with cement industries, steels paints
etc.
According to the statistics report of 2004-2005 the Real Estate company has seen many ups and
downs .There was a positive sign in investment of real estate and also in construction activities
by permitting the government. Forign Direct investment. Continuous inflow of FDI was dropped
into realestate extensively as because recession faced by the foreign market. After the darkness
and recession of global downturn Indian real estate came back in to their momentum in 2010
with the concentration on affordable Housing helped the critical situation it had experienced.
The real estate sector hold very good potential to catch the attention of FDI in different field.
Real estate growth can be only achievable if the government and real estate company goes in a
mutual understanding. Government must offer some economic residential to affordable
residential development for the needy people and also make some changed in current guidelines
for FDI for better dealing and development.
Real buyers and constructers are many in India specially they are mainly focused on
metropolitan cities. One of the positive point is that the real estate developers are ready with the
excellent supply of to the requirements as the demand by the buyers or the contractors.
As the study says that the 2015-2016 is the best year in real industry it is why because the below
points:
Financial position of the country was emerged in an increasing way and also the GDP expansion
to the level of 6.5% and also the IT sector recruited more employees. at aglance we can say that
the opportunity was increased which subsequently is very encouraging both residential and
commercial development.
The risk of economic slowdown was completely submerged this had gave the potential buyers to
ply for home loan.
Real estate was experienced a reorientation and in that time are mainly focused on affordable
projects. This helps the Real Estate investors and leads to a wide gap between demand and
supply.
Government activities of Real Estate.
 The few government activities done by government of India in the current year as flows:
 They provide hoses for cheap rate maintaining bottom line profitability.
 They provide high standards of quality product by maintaining prescribed environmental and
safety standards.
 they motivated the real estate company to achieve consistent returns for benefits and growth
of share holders
 They provide residential as well as commercial complex/ properties with modern facility.
 They maintain the consistent growth in revenue and earn profit to maintain health Cash flow.
Global capital flow in real estate according to the economics time

According to the economics time their research tells that India is ranked 4th in FDI for inflow as
per the world investment report 2016 UNCTD (united nations conference for trade and
development) . Indian real has attracted around $32 billion on private in private equity so far.
The global capital flow into Indian Real Estate in 2016 stood at $5.7billion. \
India more away which attractive to both global and Indian investor. In this year (REITs) Real
estate investment trust will further whet their appetites for getting a piece of the Indian real estate
pie. Indian REITs will prefer to invest in commercial space development – specifically the
highest quality or GRADE_A properties because of the high rental yields. India’s stock of grade
A commercial assets is increasing with REITs acting as a sure fire growth catalyst.
This segment in market will leads to major positive characters:
Cost efficiency.
It helps in the Employee motivation and retention.
It leads to hybrid the productivity.
It induces a quicker learning curve to integrate them into the entrepreneurial ecosystem.
Leads to encourage other investors to focus and concentrate and invest in this particular
industry.
Role of Real estatae

After the liberalization and privatization in last 10 – 15 years the economy of indaia was vesting
in continuous and also in a large stream.
The real estate is ane of the important as well as the significant in the economy; it is very
accruable in the growth investment. this particular sector is an advertisement of nation’s
advertisement, infrastructure and major organization trade industry.
Advantage of Real Estate
Capital appreciation
The real estate market help in the capital appreciation of the economy and it help in the way of
transferring the economy into well defined and well strong.
Secured
In today current market investing in real estate streams to be most safe and secured because it
doesn’t include share bonds or any other paper security.
Income
The real estate leads to upgrade the income as because of the large employee secretion, because
of the increasing demand of the Rental housing.
Sense of self esteem
It provides each individual a self esteem because the house or the building is owned by him and
it cannot be measured in monitory terms.
Tax Benefits
Real Estate helps in giving tax benefits to the individual who is owning the property or the
building because the house or the building is based on the renatal basis.
DISADVANTAGE
Legal issues
One of the important problems of the investors while entering into real estate transactions is the
veracity of ownership.
High expenses
The expenses of real estate industry is very high and it leads to a large expenses of the company
and leads to high risk which some company’s cannot afford.
Environmental issues
Environmental issue is one of the important issues that is facing and faced by the Real Estate
industry. Some important steps should take up by the company solve this heavy issue. some of
the examples of environmental problems are sound pollution, air pollution etc.
Theoretical background of the study
Cost-Benefits Analysis (CBA) is the process of using theory, data, and models to examine
products, tradeoffs, and activities for assessing relevant objectives and alternative solutions
(Womer, Bougnol, Dula, & Retzlaff-Roberts, 2006) in order to assist decision-makers in
choosing the most appropriate alternative. This paper explores how CBA may best be used,
focusing on the effectiveness of CBA during the early phase of a program life-cycle in ensuring
that there are viable alternatives in making investment decisions. It addresses program
importance, cost estimation, and the decision-making process in order to understand the overall
effectiveness and efficiency of CBA in making key investment decisions and enforcing
accountability among program managers. It also examines the measures and the methodology
used to develop a CBA, addresses the accuracy and reliability of CBA, and identifies techniques
available to support decision-making in the early phase of a program's life-cycle. It also notes,
however, that because not all costs and benefits can be quantified, measures other than CBA
should be considered in making investment decisions.
(https://www.mitre.org/publications/technical-papers/the-effectiveness-of-a-costs-and-benefits-
analysis-in-making-federal)
Two basic approaches for cost-benefit analysis (CBA) are ratio approach and the net benefit
approach. The ratio approach indicates the amount of benefits (or outcomes) that can be realized
per unit expenditure on a technology vs. a comparator. In the ratio approach, a technology is cost
beneficial vs. a comparator if the ratio of the change in costs to the change in benefits is less than
one. The net benefits approach indicates the absolute amount of money saved or lost due to a use
of a technology vs. a comparator. In the net benefits formulation, a technology is cost-beneficial
vs. a comparator if the net change in benefits exceeds the net change in costs. The choice
between a net benefits approach or a benefit/cost approach for a CBA can affect findings. The
approach selected may depend upon such factors as whether costs must be limited to a certain
level, whether the intent is to maximize the absolute level of benefits, whether the intent is to
minimize the cost/benefit ratio regardless of the absolute level of costs, etc. Indeed, under certain
circumstances these two basic approaches may yield different preferences among alternative
technologies.
Need of the study
A study on cost benefit analysis helps in analyzing the unexpected balance of benefits and costs;
the study will helps the company to reduce expenditure faced by the company and also the
profitability analysis of the company and in the coming future. The accurate cost benefit analysis
and profitability analysis identifies choice that increase welfare from a certain perspective.CBA
attempts to measure the positive or negative consequences of a project, and the profitability
analysis shows the how much revenue or the profit the company will acquire in the up coming
future which may include:
1. Effects on users or participants.

2. Effects on non-users or non-participants.
3. Eternity effects.
4. Option value or other social benefits.
CHAPTER 2
REVIEW OF LITERATURE
Benefit-Cost analysis is a generic term embracing a wide range of evaluation procedures which
lead to a statement assessing costs and benefits relevant to expenditure alternatives. Walsh and
Williams arise the current issues in Cost Benefit Analysis and suggest less technical, expanded
version of the analysis. The book concludes by reflecting the place of cost - benefit analysis in
the decision making process.
The book by Little and Mirrlees (1974) deals with the economic rationale of social cost benefit
analysis in developing countries and develops practicable procedures for evaluating investment
projects. Part I explain why special procedures for social cost analysis are required, and relate
them to the wider policy framework. In Part 11, a system of analysis is outlined, with particular
attention on the way in which it can be operated within planning homework. Part111 is devoted
to methods for estimating the accounting prices and explains how to deal with large-scale
projects, private projects, and other problem cases.
''
Moore (1995) sketches issues underlying broader use of cost-benefit analysis. It focuses on
cost-benefit as one of several related frameworks. He asserts, Benefit-Cost is the broadest of
these frameworks, which also include impact assessment, risk assessment, and cost-
effectiveness. Formal cost-benefit analysis compares the monetary benefits and costs of
government actions. Explains the limitations of CBA, he states that, Benefit-Cost Analysis can
be expensive and difficult to explain because indirect methods are usually employed
to approximate monetary value: of public actions.
Dasgupta and Pearce (1972) 54 give an introduction to some of the more academic questions
relating to cost-benefit analysis, including utility theory, welfare economics and optimal~ty. It
also deals with the principles behind accounting prices and the bases for decision-making in the
project selection.
Dasgupta and Stiglitz (1974) examine the rules for project evaluation and taxation. The article
concludes that world prices should be used for project evaluation unless quotas are plesent and
that no tariff should be levied on intermediate products.
The book by Mishan (1976), is a broad-based, though somewhat theoretically oriented,

introduction to cost-benefit analysis. Mishan attempts to convey to the economists with a
smattering of economies some of the crucial action and procedures that lie behind the techniques
used in costs benefit analysis. The work is simple and can be regarded as an essay on what is
and what is to count and what is not to count in a cost benefit evaluation.
bel lid' attempts to test how far economic theories are applicable tore solve practical economic
problems. He begins the book with the statement that, "the glorious theories of economics
sometimes seem detached from reality and how they can be applied to real world events may for
many students remain a mystery. Therefore my intention was to look at a spec& project to see
whether it actions satisfactorily, generates the expected benefits and with this information as a
basic, calculate the social benefits in accordance with the cost benefit method".
The cost structure of a water supply system is a debatable topic. Usually the cost of supply of
drinking water falls into two parts: Production cost and Distribution cost. The former includes
cost of treatment and of pumping of untreated and treated water and laboratory charges. The
latter comprises cost of maintenance of distribution network. Metering system small line
extension and revenue collection as well as other administrative expense. Clark and stevisS8 deal
comprehensively with the cost structure.
In India, application of social cost benefit analysis is a quite recent phenomenon So considerable
confusion prevails. Consequently in the public sector, the projects are poorly conceived,
resulting in considerable delays, cost overruns, inadequate demand for the products, insacient
availability of raw materials and poor financial returns. A challenging endeavor to throw light on
these aspects of project planning and appraisal in Indii was made by jain.
Heal review was the foundations of the customary approach to cost-benefit analysis, with
emphasis on its discounted utilitarian roots, and proposed alternative foundations. In some cases,
projects will not be ranked by their present values, but by a new concept of sustainable net
benefit. These alternative foundations imply that the calculation of shadow prices may be quite
different from the customary approach, which has implications for the conduct of cost-benefit
analysis.
Pries addresses the issue of incorporating environmental sustainability in project appraisal. He

extends the results of Barbier, Markandya, and Pearce on operation concept of sustainability into
appraisal methods for practical decision-making. He generalizes their results in two directions.
First, he abandons their implicit assumption that benefits and costs of a given project in a given
period depend only on the level of activity of the project in the same period second; he addresses
the issue of which portfolio of projects to choose. His results show how to modify the net present
value criterion for choosing a set of projects in the presence of a sustainability constraint.
Dreeze states that when the unweighted sum of net benefits from a project is used as a criterion
project evaluation, cost-benefit analysis may be sensitive to the choice of numelaire. He asserts
that this is one reason, among others, why this criterion should not be used. There is no plausible
alternative to the use of distributional weights.
Johansson claims that using money as the numeraire in cost-benefit analysis 'is systematically
favorable to those who value money the least, relative to alternative numeraires.' This note
attempts to show that the outcome of a properly undertaken Cost-benefit analysis is independent
of the choice of numeraire.
Newberry narrates the issues involved in applying cost benefit analysis in transport
investment. He says that transport investments which lower travel costs and land use projects
that affect land supply or demand will affect land prices and rents. The paper demonstrates
importance of working with the underlying utility fictions rather than demand schedules.
Munda analyses the role of distributional weights normally presented in cost-benefit analysis In
particular, to test the consistency and compatibility of the axiomatic system, attention will be
devoted to the relationship between the concept of comparability and meaning of the
distributional weights. Munda analyses the role of distributional weights normally presented in
cost-benefit analysis handbool. In particular, to test the consistency and compatibility of the
axiomatic system, attention will be devoted to the relationship between the concept of
comparability and meaning of the distributional weights.
Lumely explains Coast-benefit analysis (CBA) is a controversial technique, which is used to

assess project options for a wide range of resource allocation issues. This paper examines some
of the reasons for the controversy. It uses the economic analyses supplied to a proposed mining
project within the boundaries of Kakadu National Park in northern Australia as a case study.
Lewis describes the 1imitations and contributions of cost-benefit analysis in the evaluation of
new technology and policies in natural resources. This is achieved through a review of the
economic principles of consumer choice and the role of markets in expressing social preferences.
Islam discusses the suitability of cost-benefit analysis as an operational method for policy
making. This paper reports the results generated from an integrated dynamic optimisation model
of climate change and the economy. The paper concludes that the cost-benefit framework is a
consistent and superior decision making tool for climate change.
Clark describes the methodology of an economic appraisal of a program to use mobile

mammographic screening units in rural areas of Australia. The benefits of the poject are
measured using the travel cost method. The results suggest that the leire1 of welfare benefits
depends on the distance a town is kop the nearest fixed screening unit.
Mazurek seeks to inform the current "regulatory reform" effort in the U.S. by describing how
decision-makers in six other industrialized countries use information from risk assessments
and cost-benefit analyses. In Japan, Germany, the United Kingdom, Netherlands, Canada, and
the European Union decision makers deal with uncertaintie2 associated with risk assessments
different from those in the U.S.
Objectives of the study
1. To study the various costs in terms of advertising by Exhibition Asia.
2. To conduct an in depth analysis of Cost to Benefit analysis of Exhibition Asia.
3. To evaluate the most beneficial options.
4. To provide vital information regarding the uncertain cost as well as the deteriorate expenditure
incurred in Exhibition Asia.
Research Methodology
Sources of Data
The study will rely on primary data collected through existing customers and their responses
towards effectiveness of advertising of Exhibition Asia.
The study will be also based on secondary collected through appraisal of all the responses and
their effectiveness. Also various journals, articles, textbooks will be referred.
Sample Size
In this study I choose
Exhibition Asia’s customer database will be forming the sampling frame.
Exhibition Asia’s Net revenue analysis
Exhibition Asia’s Net profitability anayisis
Data Collection Tools
 Spearman’s Rank correlation will be used to judge the effectiveness of the responses. Also
chi-square will be used to test the expected and observed values.
 Cost-Benefit Analysis of each promotional activity will be carried out.
 ROI calculation will also be carried to arrive at what is the benefit of each strategy and the
revenue generated.
 Profitability Analysis of Exhibition Asia is carried out.

CHAPTER 3
COMPANY PROFILE
Exhibition Asia is an organization set up to provide a commendable platform for promoting
thoughts and ideology, innovation and invention, glamour and creativity…. With a motto of
excelling in respective fields of knowledge and passion, they merge the emerging entrepreneurs
to their requirements varying from investors to end users.
They march towards Success with a creative, young, focused bunch of ambitious team, each of
whom come with a profound experience in their respective fields, may it be Creativity, Print
media, Advertising, Journalism, Event Management and Production house to running successful
enterprises.
Industry Sector
 Construction Industry
 Real Estate
 Building Material
 Interior Design
 Architecture
They go that extra mile to take your business miles ahead! Exhibition Asia started in mid-2013
with a focused approach to provide a commendable platform for managing successful events.
Owing to our ideas and innovative thought process, today they have become one of the emerging
leaders by providing event solutions of high worth.

They have created specialized niche for us in real estate, infrastructure, building and construction
materials through delivering quality and excellence.
They have a diverse and highly skilled workforce from different capacities of Media Industry,
Production House and Event Management. They are committed to delivering innovative event
solutions by employing latest technology and advertising techniques for bringing about
symposiums, summits, conferences, exhibitions and a variety of events.
EVENTS
Global Real Estate Brand Awards 2016 & 2015
The prime objective of Exhibition Asia was to honor the real estate industry for their enormous
contribution and acknowledge the efforts of developers, brokers, dealers, architects. Global Real
Brand Estate Awards (GREBA) was organized in February 2015, where an elaborate panel
discussion preceded the splendid mega award ceremony at Bengaluru.

Build Connect 2016 & 2015
High Level Networking Opportunities
The boutique exhibition is set up in the networking area where delegates will have the
opportunity to meet, discuss and discover solutions from leading local and international brands
showcasing leading-edge technologies.
• Roundtable Sessions
Through the brainstorming of ideas roundtable sessions are designed to spawn solutions or
strategies to solve industry challenges. Led by an expert, the session will be conducted in break-
out tables where teams will discuss topics of interest to the industry, followed by a presentation
of the group’s findings.

CHAPTER 4
DATA ANALYSIS & INTERPRETATION
Profitability Analysis of Global Real Estate Events
Real Estate Event
Year Gross Profit (in lakhs)
2014 4.713
2015 11.03
2016 17.53
Above is the table that shows Exhibition Asia’s gross profit for Real Estate Event over the years.
There is an increasing trend in the profit. The trend analysis of the graph below shows how much
the profit has been growing.
It can be observed that the profits have shown an increasing trend year on year, but a much
closer look reveals that the profit from 2014 grew by 134% in 2015, but fell down to 59% in
2016.
A linear equation model has been developed by adding the trend line to the gross profit figures.
y = 6.4085x – 12902
R² = 0.9999
The above equation can be used to predict the tentative profit for 2017.
If the figures are substituted in the equation, then it can be observed that
y = 6.4085 (2017) ─ 12902
y = 23.9445 Lakhs.
It can be predicted that the profit for 2017 year will be around 23.9445 Lakhs.
In order to comment upon the profitability of Exhibition Asia Real Estate Event products’ sales,
it is necessary to analyse the net revenue from the sale of Real Estate Event.
Below table shows the Net Revenue of Exhibition Asia over the years.
Year Net Revenue
2014 80.08
2015 86.2
2016 94.93
Above is the table that shows Exhibition Asia’s Net Revenue for Real Estate Event over the
years.
It can be observed that the profits have shown an increasing trend year on year, a much closer
look reveals that the revenues from 2014 grew by 8% in 2015, and increased by 10% in 2016.
There is an increasing trend in the net revenues. The trend analysis of the graph below shows
how much the revenue has been growing.

A Polynomial equation model has been developed by adding the trend line to the Net Revenues
figures.
y = 1.305x2 + 2.205x + 76.57
R² = 1
y = 1.305 (4)2 + 2.205(4) + 76.57
y = 106.27 Lakhs.
It can be predicted that the revenue for 2017 year will be around 106.27 Lakhs. Which is a
growth of 11.95% from 2016.
The Gross Profit ratio will be providing a better understanding of the firm’s ratio which is
displayed in the table below
Year Gross Profit Net Revenue Ratio
2014 4.713 80.08 5.885
2015 11.03 86.2 12.796
2016 17.53 94.93 18.466
The GP ratio has been arrived at by using the formula.
Gross Profit ratio= Gross profit/Net sales x100
The Gross Profit ratio is the highest in 2016 at 18.466%. It has shown an increasing trend over
the years.
Considering that Exhibition Asia is an event company which has started its operation in 2014,
the GP ratio for the company is is considerably good. This ratio is slightly higher for the industry
leaders.
Absolute and relative Measure of Dispersion
2014 4.713 80.08 5.885
2015 11.03 86.2 12.796
2016 17.53 94.93 18.466
Average 11.091 87.07 12.382
Standard
6.409 7.463 6.301
Deviation
Cov% 23.811
The company has manageable standard deviation at 6.409. this figure is considered slightly
higher in the industry, though it is not to be taken so seriously, as one has to considered that the
company has been into existence only from 2014 onwards.
Covariance is a relative measure and it has been calculated through Net revenue. It is important
to find the covariance so that it would be a guide to the management about their future
forecasting techniques.
The covariance stood at 23.811%.

Net Operating Analysis
In order to comment upon the profitability of Exhibition Asia Real Estate Event products’ sales,
it is necessary to analyse the net operating profit from the sale of Real Estate Event.
Below table shows the Net Operating Profit of Exhibition Asia over the years.
Year Net Operating Profit( in lakhs)
2014 1.37
2015 9.69
2016 15.35
Above is the table that shows Exhibition Asia’s Net Operating for Real Estate Event over the
years.
look reveals that the profits from 2014 grew by 607% in 2015, and increased by 58.4% in 2016.

A Polynomial equation model has been developed by adding the trend line to the operating profit
figures.
y = -1.33x2 + 12.31x - 9.61
R² = 1
y = -1.33(4)2 + 12.31(4) - 9.61
y = 18.35 Lakhs.
Net Operating Profit Ratio
The Operating Profit ratio will be providing a better understanding of the firm’s ratio which is
displayed in the table below.
Year Net Operating Profit Net Revenue Ratio
2014 1.37 80.08 1.71
2015 9.69 86.2 11.24
2016 15.35 94.93 16.17
The operating ratio has been arrived at by using the formula
Operating Profit ratio= Net Operating profit/ Net Sales x100
The Gross Profit ratio is the highest in 2016 at 16.17%. It has shown an increasing trend over the
years
the GP ratio for the company is considerably good. This ratio is slightly higher for the industry
leaders. The net revenue of 2014 is 80.08 lakhs, in 2015 the net revenue is 86.2 lakhs and in
2016 the net revenue is 94.93.

2014 1.37 80.08 1.71
2015 9.69 86.2 11.24
2016 15.35 94.93 16.17
Average 8.80 87.07 9.707
Standard Deviation 7.032 7.463
Covariance % 25.661
The company has manageable standard deviation at 7.032, this figure is considered slightly
higher in the industry, though it is not to be taken so seriously, as one has to consider that the

Profitability Analysis Brand Equity
Year Gross Profit
2014 1.28
2015 3.78
2016 5.98
Above is the table that shows Exhibition Asia’s gross profit for Brand Equity over the years.
closer look reveals that the profit from 2014 grew by 195% in 2015, but fell down to 58.20% in
2016.
y = 2.35x - 1.02
R² = 0.9986
y = 2.35*(4) ─ 1.02
y = 8.38 Lakhs.
In order to comment upon the profitability of Exhibition Asia Brand Equity products’ sales, it is
necessary to analyse the net revenue from the sale of Brand Equity.
Year Net Revenue
2014 4.65
2015 9.87
2016 13.58
Above is the table that shows Exhibition Asia’s Net Revenue for Brand Equity over the years.

figures.
y = -0.755x2 + 7.485x - 2.08
R² = 1
y = -0.755x2 + 7.485x - 2.08

y = 15.78 Lakhs.
2014 1.28 4.65 27.527
2015 3.78 9.87 38.298
2016 5.98 13.58 44.035
The GP ratio has been arrived at by using the formula
Gross Profit ratio= Gross profit x100
Net Sales
The Gross Profit ratio is the highest in 2016 at 44.035% it has shown an increasing trend over the
years.
the GP ratio for the company is is considerably good. This ratio is slightly higher for the industry
le
2014 1.28 4.65 27.527
2015 3.78 9.87 38.298
2016 5.98 13.58 44.035
Average 3.68 9.367 36.620
Standard Deviation 2.352 4.486 8.381
Covariance% 5.265
The company has manageable standard deviation at 2.352; this figure is considered slightly
The covariance stood at
5.265%.
In order to comment upon the profitability of Exhibition Asia Brand Equity sales, it is necessary
to analyse the net operating profit from the sale of Brand Equity.
Year Net Operating Profit
2014 1.37
2015 2.93
2016 3.59
Above is the table that shows Exhibition Asia’s Net Operating for Brand Equity over the years.
look reveals that the profits from 2014 grew by 113.9% in 2015, and increased by 22.5% in
2016.

figures.
y = -0.45x2 + 2.91x - 1.09
R² = 1
y = -0.45(4)2 + 2.91(4) - 1.09
y = 3.35 Lakhs.
2014 1.37 4.65 29.46
2015 2.93 9.87 29.69
2016 3.59 13.58 26.44
Operating Profit ratio= Net Operating profit x100

Net Sales
The Operating profit ratio is the highest in 2015 at 29.69%. It has shown an increasing trend over
the years though in 2016 it has decreased slightly.
leaders.
2014 1.37 4.65 29.46
2015 2.93 9.87 29.69
2016 3.59 13.58 26.44
Average 2.63 9.367 28.52807
Covariance % 2.535

Profitability Analysis of Other Real Estate Event
Year Gross Profit (in lakhs)
2014 3.54
2015 4.87
2016 5.12
Above is the table that shows Exhibition Asia’s gross profit for Other Real Estate Event over the
years.
closer look reveals that the profit from 2014 grew by 37.5% in 2015, but fell down to 5.13% in
2016.
y = 0.79x + 2.93
R² = 0.8652
y = 0.79*(4) + 2.93
y = 6.09 Lakhs.
In order to comment upon the profitability of Exhibition Asia Other Real Estate Event sales, it is
necessary to analyse the net revenue from the sale of Other Real Estate Event.
Year Net Revenue
2014 6.95
2015 8.27
2016 11.63
Above is the table that shows Exhibition Asia’s Net Revenue for Other Real Estate Event over
the years.

figures.
y = 1.02x2 - 1.74x + 7.67
R² = 1
y = 1.02x2 - 1.74x + 7.67
y = 17.03 Lakhs.
2014 3.54 6.95 50.935
2015 4.87 8.27 58.888
2016 5.12 11.63 44.024

The GP ratio has been arrived at by using the formula
Gross Profit ratio= Gross profit/ Net Salesx100
The Gross Profit ratio is the highest in 2015 at 58.888% it has shown an increasing trend over the
years.
leaders.
2014 3.54 6.95 50.935
2015 4.87 8.27 58.888
2016 5.12 11.63 44.024
Average 4.51 8.950 51.282
Standard Deviation 0.849 2.413 7.438
Covariance% 0.833

In order to comment upon the profitability of Exhibition Asia Other Real Estate Event sales, it is
necessary to analyse the net operating profit from the sale of Other Real Estate Event.
Year Net Operating Profit (in lakhs)
2014 2.18
2015 3.03
2016 4.39
Above is the table that shows Exhibition Asia’s Net Operating for Other Real Estate Event over
the years.
look reveals that the profits from 2014 grew by 39% in 2015, and increased by 44.9% in 2016.

figures.
y = 0.255x2 + 0.085x + 1.84
R² = 1
y = 0.255(4)2 + 0.085(4) + 1.84
y = 6.26 Lakhs.
2014 2.18 6.95 31.37
2015 3.03 8.27 36.64
2016 4.39 11.63 37.75
Operating Profit ratio= Net Operating profit / Net Sales x100
The Operating profit ratio is the highest in 2016 at 37.75%. It has shown an increasing trend over
the years.
leaders.
2014 2.18 6.95 31.37
2015 3.03 8.27 36.64
2016 4.39 11.63 37.75
Average 3.20 8.950 35.25085
Covariance % 1.336

Comparative Analysis of Products
Gross Profit (in lakhs)
Other Real
Year Real Estate Event Brand Equity
Estate Events
2014 4.71 1.28 3.54
2015 11.03 3.78 4.87
2016 17.53 5.98 5.12
Total 33.27 11.04 13.53
From the above table it is clear that for Exhibition Asia, in terms of gross profits generated, the
most profitable product line is the Real Estate Event. It has been able to generate comparatively
high profits when compared with other product lines.

Gross profit cannot be only taken as a tool to judge which product line is profitable. One has to
consider other aspects too.

Net Operating Profit (in lakhs)
Other Real
Brand Equity Estate

Year Real Estate Event
Events
2014 1.37 1.12 2.18
2015 9.69 2.93 3.03
2016 15.35 3.59 4.39
Total 26.41 7.64 9.6
From the above table it is clear that for Exhibition Asia, in terms of operating profits generated,
the most profitable product line is the Real Estate Event. It has been able to generate
comparatively high profits when compared with other product lines.

Operating profit can provide a better judgment tool to judge which product line is profitable.
Nevertheless other aspects too should be considered.

Net Revenues
Other Real
Year Real Estate Event(lakhs) Brand Equity
Estate Events
2014 80.08 4.65 6.95
2015 86.2 9.87 8.27
2016 94.93 13.58 11.63
Total 261.21 28.1 26.85
From the above table it is clear that for Exhibition Asia, in terms of revenues generated, the most
profitable product line is the Real Estate Event. It has been able to generate comparatively high
revenues when compared with other product lines.

Net Revenues provide a better judgment tool to judge which product line is profitable, and how
much the company will acquire the revenue in the coming future.
CHAPTER 5
SUMMARY, FINDINGS, AND SUGGESTIONS
SUMMARY
The word profitability is composed of two words, namely, profit and ability. The term profit has
been explained above and the term ability indicates the power of a business entity to earn profits.
The ability of a concern also denotes its earning power or operating performance. The
profitability may be defined as the ability of a given investment to earn a return from its use.
Profitability is a relative concept whereas profit is an absolute connotation. Despite being closely
related to and mutually interdependent, profit and profitability are two different concepts. In
other words, in spite of their generic nature, each one of them has a distinct role in business. As
an absolute term, profit has no relevance to compare the efficiency of a business organization. A
very high profit does not always indicate sound organizational efficiency and low profitability is
not always a sign of organizational sickness. Therefore, it can be said that profit is not the prime
variable on the basis of which the operational efficiency and financial efficiency of an
organization can be compared. To measure the productivity of capital employed and to measure
operational efficiency, profitability analysis is considered as one of the best techniques.
Profitability is the ability to earn profit from all the activities of an enterprise. It indicates how
well management of an enterprise generates earnings by using the resources at its disposal. In the
other words the ability to earn profit e.g. profitability, it is composed of two words profit and
ability. The word profit represents the absolute figure of profit but an absolute figure alone does
not give an exact ideas of the adequacy or otherwise of increase or change in performance as
shown in the financial statement of the enterprise. The word ‘ability’ reflects the power of an
enterprise to earn profits, it is called earning performance. Earnings are an essential requirement
to continue the business. So we can say that a healthy enterprise is that which has good
profitability.
Need for the Study
The basic need of the study of profitability analysis allows managers to segregate and manage
the overall activities of the organisation. Exhibition Asia is an event company, and this study will
help it know its status, by analyzing the various aspects.
Objectives of the study
1. To study the various costs in terms of advertising by Exhibition Asia
2. To conduct an in depth analysis of Cost to Benefit analysis of Exhibition Asia
3. To evaluate the most beneficial options
Research Methodology
Sources of Data
The study will be also based on secondary collected through appraisal of all the responses and
their effectiveness. Also various journals, articles, textbooks will be referred.
Cost-Benefit Analysis of each promotional activity will be carried out.
Returns calculation will also be carried to arrive at what is the benefit of each strategy and the
revenue generated
FINDINGS
GRAND REAL ESTATE EVENTS
 There is an increasing trend in the profit. It can be observed that the profits have shown an
increasing trend year on year, but a much closer look reveals that the profit from 2014 grew
by 134% in 2015, but fell down to 59% in 2016.
 It can be observed that the profits have shown an increasing trend year on year, a much closer
look reveals that the revenues from 2014 grew by 8% in 2015, and increased by 10% in
2016.
 The company has manageable standard deviation at 6.409 this figure is considered slightly
look reveals that the profits from 2014 grew by 607% in 2015, and increased by 58.4% in
2016.
 The Gross Profit ratio is the highest in 2016 at 16.17%. It has shown an increasing trend over
the years. The company has manageable standard deviation at 7.032.

BRAND EQUITY
 It can be observed that the profits have shown an increasing trend year on year, but a much
closer look reveals that the profit from 2014 grew by 195% in 2015, but fell down to 58.20%
in 2016.
2016.
 The Gross Profit ratio is the highest in 2016 at 44.035% it has shown an increasing trend over
the years.
 The company has manageable standard deviation at 2.352, this figure is considered slightly
higher in the industry, though it is not to be taken so seriously.
look reveals that the profits from 2014 grew by 113.9% in 2015, and increased by 22.5% in
2016.
 The Operating profit ratio is the highest in 2015 at 29.69%. It has shown an increasing trend
over the years though in 2016 it has decreased slightly.
 The company has a standard deviation at 1.140. It can be observed that the profits have
shown an increasing trend year on year, but a much closer look reveals that the profit from
2014 grew by 37.5% in 2015, but fell down to 5.13% in 2016.

Other Real Estate Events
2016.
look reveals that the profits from 2014 grew by 39% in 2015, and increased by 44.9% in
2016.
 It can be observed that the profits have shown an increasing trend year on year, but a much
closer look reveals that the profit from 2014 grew by 163.72% in 2015, but fell down to
22.48% in 2016.
SUGGESTIONS
 The company’s highest profitable product line is in Real Estate Event. It should keep its
progress in the same line.
 There’s high margin in the other real estate event category. The average gross profit ratio is
51.282% this is the highest in the entire product line of the Exhibition Asia.
 Exhibition Asia should concentrate more other real estate event and increase its marketing.
The sales should be increased, which will lead to a high profits.
 Brand Equity have a consistent growth, and Exhibition Asia should increase product
assortment. They should be able to increase their revenues and compete with competitors.
References
1. Tom Nelson, “Management Accounting”, Macmilan, New York, 1970.
2. Alba, J. Lynch, L. Weitz, B. Janiszewski, C. Lutz, R. Sawyer, A. and Wood, S. Interactive
home shopping: consumer, retailer, and manufacturer incentives to participate in Real Estate
Event marketplaces, Journal of Marketing, vol. 61, no. 3, pp. 38-53, 1997.
3. Bierman Jr. H. & Drebin Allen Jr., “Financial Accounting – An Introduction”, Macmillan,
New York, 1965.
4. Bradely, J. F., “Administrative Financial Management”, Branves and Noble, New York,
1964.
5. Brink, T., Gergle, D., Wood, S. (2002). Designing Web Sites That Work: Usability for the
Web, San Francisco: Morgan Kaufman Publishers
6. Dr. S. N. Maheshwari, “Principles of Management Accounting”, Sultan Chand 7 Sons, New
Delhi, 2001.
7. Ed Ruggero and Dennis F. Haley, The Leader’s Compass: A Personal Leadership
Philosophy Is
8. Elezadi-Amoli J. and Earhoomand, A.E. A structural model of end user computing
satisfaction and user performance, Information & Management, vol. 30, no. 2, 1996.
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and recommendations for effectiveness, Proceedings of the 32d Hawaii International
Conference on System Science. Maui, HI: IEEE Computer Society, January 1999.
10. Harward & Upto, “Introduction to Business Finance”, Mc Graw Hill, New York, 1961.
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and evaluative aesthetic judgment processes using event-related brain potentials. Empirical
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Management, vol. 37, no. 3, pp. 123-134, 2000.
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A study on

Cost Benefit Analysis of Exhibition Asia

2.industrial real estate

The main aid of investing in industrial real estate are as follows:

Real Esate procedure might be encouraged on:

About the market size of real estate in the market

Global capital flow in real estate according to the economics time

Role of Real estatae

1. Effects on users or participants.

The book by Mishan (1976), is a broad-based, though somewhat theoretically oriented,

Pries addresses the issue of incorporating environmental sustainability in project appraisal. He

Lumely explains Coast-benefit analysis (CBA) is a controversial technique, which is used to

Clark describes the methodology of an economic appraisal of a program to use mobile

Objectives of the study

1. To study the various costs in terms of advertising by Exhibition Asia.

2. To conduct an in depth analysis of Cost to Benefit analysis of Exhibition Asia.

3. To evaluate the most beneficial options.

towards effectiveness of advertising of Exhibition Asia.

their effectiveness. Also various journals, articles, textbooks will be referred.

In this study I choose

Exhibition Asia’s customer database will be forming the sampling frame.

Exhibition Asia’s Net revenue analysis

Exhibition Asia’s Net profitability anayisis

Data Collection Tools

chi-square will be used to test the expected and observed values.

 Cost-Benefit Analysis of each promotional activity will be carried out.

 Profitability Analysis of Exhibition Asia is carried out.

Exhibition Asia is an organization set up to provide a commendable platform for promoting

to their requirements varying from investors to end users.

leaders by providing event solutions of high worth.

materials through delivering quality and excellence.

symposiums, summits, conferences, exhibitions and a variety of events.

Global Real Estate Brand Awards 2016 & 2015

discussion preceded the splendid mega award ceremony at Bengaluru.

High Level Networking Opportunities

showcasing leading-edge technologies.

of the group’s findings.

DATA ANALYSIS & INTERPRETATION

Profitability Analysis of Global Real Estate Events

Real Estate Event

Year Gross Profit (in lakhs)

the profit has been growing.

y = 6.4085 (2017) ─ 12902

Year Net Revenue

how much the revenue has been growing.

y = 1.305x2 + 2.205x + 76.57

y = 1.305 (4)2 + 2.205(4) + 76.57

growth of 11.95% from 2016.

displayed in the table below

Year Gross Profit Net Revenue Ratio

2014 4.713 80.08 5.885

2015 11.03 86.2 12.796

2016 17.53 94.93 18.466

The GP ratio has been arrived at by using the formula.

Gross Profit ratio= Gross profit/Net sales x100

Year Gross Profit Net Revenue Ratio

2014 4.713 80.08 5.885

2015 11.03 86.2 12.796

2016 17.53 94.93 18.466

Average 11.091 87.07 12.382

company has been into existence only from 2014 onwards.

The covariance stood at 23.811%.

Year Net Operating Profit( in lakhs)