2024

PROJECT
REPORT

The Preschool Industry

finline address
 Project at a glance

Name & Address of Unit

The Preschool Industry

finline address,123456

Activity : The Preschool Industry

Email : sample@finline.in

Phone : 1234567890

Constitution : Proprietorship

Scheme : sme

Number of employment : 5

Total project cost : 1,025.00

Fixed Capital : 900.00

Working Capital : 125.00

Total Bank loan : 775.00

Promoter(s) contribution : 250.00

Term loan : 675.00 Interest : 11.00 %

Working capital loan : 100.00 Interest : 11.00 %

Name & address of promoter(s)

Name : finline sample project

Address : finline address

Phone : 1234567890

Designation : Founder

Category : na

E-mail : sample@finline.in
 Project Feasibility Ratio

Debt Service Coverage Ratio (Average) : -72.06

Current ratio (Average) : -260.21

Year 1 Year 2 Year 3 Year 4 Year 5

Current ratio -23.08 -130.55 -248.58 -378.23 -520.65

Quick ratio -23.08 -130.55 -248.58 -378.23 -520.65

Interest coverage ratio -159.50 -135.43 -177.78 -249.34 -395.73

Debt equity ratio 0.35 0.06 0.03 0.02 0.01

TOL/TNW 0.35 0.06 0.03 0.02 0.01

DSCR -81.84 -60.01 -66.01 -72.60 -79.85

Gross profit Sales Percentage % 0.00 % 0.00 % 0.00 % 0.00 % 0.00 %

Net profit Sales Percentage % 0.00 % 0.00 % 0.00 % 0.00 % 0.00 %

Return On Capital Employed 1.59 0.86 0.48 0.34 0.27

Net profit Sales % Quick ratio

Project Feasibility graph
Revenue v/s Expense

Expense Splitup
 Introduction

Education in India is a matter of utmost importance. Adding to that is a recent trend of enrolling students in
their initial phase of mental and physical development in preschools. Pre-schools are educational services for
children aged 2 to 4 years old that focus on the acquisition of children's skills at an early age. These
organisations help children access early education with the aim of enhancing their self-esteem and learning
patterns. In order to improve their basic motor, perceptual, physical, psychological, linguistic, and emotional
capacities, certain learning spaces focus on developing their behavioural, emotional, and linguistic skills. They
also perform team-building activities for children in order to instil a sense of concern for their peers and also
encouraging the importance of teamwork.

In recent years, there has been significant growth in demand for high-value facilities integrated with traditional
playschool schemes. Children's day-care services have begun to be offered by market players. Working
parents are drawn to new preschools through features such as customised curriculum services, safe access
networks, real-time closed-circuit television (CCTV) access, and temperature-controlled indoor environments.
Furthermore, as parents' attitudes toward improving their children's cognitive and language abilities during
their formative years have shifted, the need for high-quality early childhood learning services has risen in
recent years. As a result, a growing number of parents are able to spend money on high-quality playschool
programmes. In India, this will be the driving force behind the preschool industry.

Rising disposable income, the trend of corporate playschools, and increased focus on teacher preparation are
only a few of the other factors that will help India's preschool sector expand during the forecast period. One of
the main reasons expected to drive the preschool sector in India is the growing inclusion of women in the
labour force. Women's inclusion in the workforce has risen as a result of factors such as a rapid shift in social
mindset, increased female schooling, increased job opportunities, and growing household spending. In
addition, the Indian government has taken many supporting steps to promote female jobs and reduce gender
disparities, which has boosted the enrolment ratio in preschools.
 Market potential & Strategy

During the period 2020-2024, India's preschool market is projected to grow at a Compound Annual Growth
Rate of nearly 18 per cent. Kidzee, Bachpan, Eurokids, Tree House Education & Accessories Ltd., Shemrock,
Hello Kids Education India Pvt. Ltd., Little Millennium, Poddar Jumbo Kids, T.I.M.E. Kids Preschools, and
Kangaroo Kids are some of the big players in the India Preschool/Daycare industry. To incorporate and
establish amongst such a stiff competition can be a complicated affair. The preschool market in India is
segmented by region (urban and rural) and age group in this market study (children aged 3-6 years and
children aged below 3 years).

In India, the urban area division dominated the preschool market share in 2019. Because of the greater
penetration of branded preschools in tier 1 and tier 2 cities, as well as the increasing income of the population
in urban areas, this segment would account for the highest incremental growth in the Indian preschool sector.
Furthermore, the increasing change in the Indian education sector, as well as increased parental
understanding of the value of early childhood education, will propel the preschool market in urban India during
the forecast period. In 2020, the pre-school/childcare industry in the country was dominated by the urban
sector. Due to increased penetration of branded pre-schools in Tier 1 and Tier 2 cities, as well as the
population income in urban areas, this segment would account for the highest incremental growth in the
Indian pre-school market. Furthermore, during the forecast era, the increasing shift in the Indian education
sector, combined with a growing perception among parents of the importance of early childhood education,
would fuel the urban India pre-school/childcare industry. With the single trend of the middle and the upper-
middle-class including the elite working class, the urgency of leaving children for care and education is the
only feasible option that the families are going to be left with. The industry is all set to offer heavy returns for
investments in a tech-enabled ecosystem, a must for the future.
 Project Cost
Sl. no Item Amount Rs.

1 Land 100.00

2 Building 100.00

3 machinery /Equipments 100.00

4 Furniture & fixtures 100.00

5 Racks & storage 100.00

6 Computers/ Printers /Photocopier/Electronic gadget 100.00

7 Vehicle 100.00

8 Electrification & Electricity backup 100.00

9 Software purchase 100.00

10 Working Capital 125.00

Total 1,025.00
 Working Capital Computation
Sl. no Item Amount Rs.

1 Working expense. 125.00

2 Total working capital 125.00

3 Own Contribution 25.00

4 Working capital loan 100.00

 Total Yearly Expense
Expense is calculated from January 2024 .

Sl. no Item Amount Rs.

1 Salary 300.00

2 Repairs and maintenance charges 300.00

3 Electricity/Gas charges 300.00

4 Stationary expenses 300.00

5 Purchase consumables/ spare part 300.00

6 Transportation cost 300.00

7 Telephone/Postal &internet charge 300.00

8 Marketing & advertising cost 300.00

Total 2,400.00
 Application of Fund
Sl. no Item Subsidy % No. Rate Amount Rs.

1 Land 0.00 1 100.00 100.00

2 Building 0.00 1 100.00 100.00

3 machinery /Equipments 0.00 1 100.00 100.00

4 Furniture & fixtures 0.00 1 100.00 100.00

5 Racks & storage 0.00 1 100.00 100.00

6 Computers/ Printers /Photocopier/Electronic gadget 0.00 1 100.00 100.00

7 Vehicle 0.00 1 100.00 100.00

8 Electrification & Electricity backup 0.00 1 100.00 100.00

9 Software purchase 0.00 1 100.00 100.00

Total Investment 900.00

Total Subsidy 0.00

Net Investment 900.00

 Means of Finance
Sl. no Item Amount

1 Term Loan 675.00

2 Working capital Loan 100.00

3 Total loan 775.00

4 Promoters contribution on term loan 225.00

5 Promoters contribution on working capital loan 25.00

 Profitability Statement
All figures are in lakhs
31/03/24 31/03/25 31/03/26 31/03/27 31/03/28

Revenue from operation

Add :

Closing stock 0 0 0 0 0

Total 0 0 0 0 0

Less :

Opening stock 0 0 0 0 0

Purchase consumables/ spare part 0.0030 0.013 0.015 0.016 0.018

Salary 0.0030 0.013 0.015 0.016 0.018

Repairs and maintenance charges 0.0030 0.013 0.015 0.016 0.018

Electricity/Gas charges 0.0030 0.013 0.015 0.016 0.018

Total 0.012 0.053 0.058 0.064 0.070

Gross profit -0.012 -0.053 -0.058 -0.064 -0.070

Less :

Stationary expenses 0.0030 0.013 0.015 0.016 0.018

Transportation cost 0.0030 0.013 0.015 0.016 0.018

Telephone/Postal &internet charge 0.0030 0.013 0.015 0.016 0.018

Marketing & advertising cost 0.0030 0.013 0.015 0.016 0.018

Total 0.012 0.053 0.058 0.064 0.070

Profit before interest, tax and depreciation -0.024 -0.11 -0.12 -0.13 -0.14

Depreciation 0 0 0 0 0

Interest on TL 0 0 0 0 0

Interest on WC 0 0 0 0 0

Profit before tax -0.024 -0.11 -0.12 -0.13 -0.14

Income Tax 0 0 0 0 0

Profit after tax -0.024 -0.11 -0.12 -0.13 -0.14

 Cash flow statement
All figures are in lakhs
Cash Inflow Pre operative period 31/03/24 31/03/25 31/03/26 31/03/27 31/03/28
Capital 0.0023 0 0 0 0 0
Subsidy 0 0 0 0 0 0
Termloan 0.0068 0 0 0 0 0
Profit before tax with interest 0 -0.024 -0.11 -0.12 -0.13 -0.14
Increase in WC loan 0 0.0010 0 0 0 0
Depreciation 0 0 0 0 0 0
Increase in Current liability 0 0 0 0 0 0
Total Cash Inflow 0.0090 -0.023 -0.11 -0.12 -0.13 -0.14

Cash Outflow
Fixed Assets 0.0090 0 0 0 0 0
Increase in Current asset 0 0 0 0 0
Interest on TL 0 0 0 0 0 0
Interest on WC 0 0 0 0 0 0
Income Tax 0 0 0 0 0 0
Decrease in Term loan 0 0.0011 0.0012 0.0014 0.0015
Drawing 0 0 0 0 0 0
Total Cash Outflow 0.0090 0 0.0019 0.0019 0.0019 0.0019
Opening balance 0 0 -0.023 -0.13 -0.25 -0.38
Net Cashflow 0 -0.023 -0.11 -0.12 -0.13 -0.14
Closing balance 0 -0.023 -0.13 -0.25 -0.38 -0.52
 Balance sheet
All figures are in lakhs
Liability Pre operative period As of 31/03/24 31/03/25 31/03/26 31/03/27 31/03/28

A. Share holders funds

Capital 0.0023 0.0025 0.0025 0.0025 0.0025 0.0025

Reserve & Surplus 0 -0.024 -0.13 -0.25 -0.38 -0.52

B.Non current Liabilities

Termloan 0.0068 0.0066 0.0055 0.0043 0.0029 0.0014

C.Current Liabilities

Working capital loan 0 0.0010 0.0010 0.0010 0.0010 0.0010

Account payable 0 0 0 0 0

Total Liability 0.0090 -0.014 -0.12 -0.24 -0.37 -0.51

Asset

A. Non current Assets

Fixed Assets 0.0090 0.0089 0.0083 0.0079 0.0075 0.0071

B. Current Assets

Inventory 0 0 0 0 0 0

Trade receivables 0 0 0 0 0 0

Cash and cash equivalence 0 -0.023 -0.13 -0.25 -0.38 -0.52

Total Asset 0.0090 -0.014 -0.12 -0.24 -0.37 -0.51

 Repayment of Term loan
All figures are in lakhs
Year Month Installment Outstanding at the beginning Principal repayment Interest Amount paid Outstanding at the end

1 Feb 2024 1 0.0068 0 0 0 0.0067

1 Mar 2024 2 0.0067 0 0 0 0.0066

2 Apr 2024 3 0.0066 0 0 0 0.0065

2 May 2024 4 0.0065 0 0 0 0.0064

2 Jun 2024 5 0.0064 0 0 0 0.0063

2 Jul 2024 6 0.0063 0 0 0 0.0062

2 Aug 2024 7 0.0062 0 0 0 0.0061

2 Sep 2024 8 0.0061 0 0 0 0.0060

2 Oct 2024 9 0.0060 0 0 0 0.0060

2 Nov 2024 10 0.0060 0 0 0 0.0059

2 Dec 2024 11 0.0059 0 0 0 0.0058

2 Jan 2025 12 0.0058 0 0 0 0.0057

2 Feb 2025 13 0.0057 0 0 0 0.0056

2 Mar 2025 14 0.0056 0 0 0 0.0055

3 Apr 2025 15 0.0055 0 0 0 0.0054

3 May 2025 16 0.0054 0 0 0 0.0053

3 Jun 2025 17 0.0053 0 0 0 0.0052

3 Jul 2025 18 0.0052 0 0 0 0.0051

3 Aug 2025 19 0.0051 0 0 0 0.0050

3 Sep 2025 20 0.0050 0 0 0 0.0049

3 Oct 2025 21 0.0049 0 0 0 0.0048

3 Nov 2025 22 0.0048 0 0 0 0.0047

3 Dec 2025 23 0.0047 0 0 0 0.0046

3 Jan 2026 24 0.0046 0 0 0 0.0045

3 Feb 2026 25 0.0045 0 0 0 0.0044

3 Mar 2026 26 0.0044 0 0 0 0.0043

4 Apr 2026 27 0.0043 0 0 0 0.0042

4 May 2026 28 0.0042 0 0 0 0.0041

4 Jun 2026 29 0.0041 0 0 0 0.0039

4 Jul 2026 30 0.0039 0 0 0 0.0038

4 Aug 2026 31 0.0038 0 0 0 0.0037

4 Sep 2026 32 0.0037 0 0 0 0.0036

4 Oct 2026 33 0.0036 0 0 0 0.0035

4 Nov 2026 34 0.0035 0 0 0 0.0034

4 Dec 2026 35 0.0034 0 0 0 0.0033

4 Jan 2027 36 0.0033 0 0 0 0.0031

4 Feb 2027 37 0.0031 0 0 0 0.0030

Year Month Installment Outstanding at the beginning Principal repayment Interest Amount paid Outstanding at the end

4 Mar 2027 38 0.0030 0 0 0 0.0029

5 Apr 2027 39 0.0029 0 0 0 0.0028

5 May 2027 40 0.0028 0 0 0 0.0027

5 Jun 2027 41 0.0027 0 0 0 0.0025

5 Jul 2027 42 0.0025 0 0 0 0.0024

5 Aug 2027 43 0.0024 0 0 0 0.0023

5 Sep 2027 44 0.0023 0 0 0 0.0022

5 Oct 2027 45 0.0022 0 0 0 0.0020

5 Nov 2027 46 0.0020 0 0 0 0.0019

5 Dec 2027 47 0.0019 0 0 0 0.0018

5 Jan 2028 48 0.0018 0 0 0 0.0017

5 Feb 2028 49 0.0017 0 0 0 0.0015

5 Mar 2028 50 0.0015 0 0 0 0.0014

6 Apr 2028 51 0.0014 0 0 0 0.0013

6 May 2028 52 0.0013 0 0 0 0.0011

6 Jun 2028 53 0.0011 0 0 0 0

6 Jul 2028 54 0 0 0 0 0

6 Aug 2028 55 0 0 0 0 0

6 Sep 2028 56 0 0 0 0 0

6 Oct 2028 57 0 0 0 0 0

6 Nov 2028 58 0 0 0 0 0

6 Dec 2028 59 0 0 0 0 0

6 Jan 2029 60 0 0 0 0 0
 Debt Service Coverage Ratio
All figures are in lakhs
Particulars 31/03/24 31/03/25 31/03/26 31/03/27 31/03/28

Receipts

a).Net Profit -0.024 -0.11 -0.12 -0.13 -0.14

b).Depreciation 0 0 0 0 0

c).Interest on termloan 0 0 0 0 0

Total -0.024 -0.11 -0.12 -0.13 -0.14

Repayments

a).Loan Principal 0 0.0011 0.0012 0.0014 0.0015

b).Interest on termloan 0 0 0 0 0

Total 0 0.0018 0.0018 0.0018 0.0018

DSCR -81.84 -60.01 -66.00 -72.60 -79.85

Average DSCR : -72.06

 Depreciation
All figures are in lakhs
Particulars Rate 31/03/24 31/03/25 31/03/26 31/03/27 31/03/28

Building 5 0.0010 0 0 0 0

Less Depreciation 0 0 0 0 0

Written down value 0 0 0 0 0

machinery /Equipments 15 0.0010 0 0 0 0

Less Depreciation 0 0 0 0 0

Written down value 0 0 0 0 0

Furniture & fixtures 10 0.0010 0 0 0 0

Less Depreciation 0 0 0 0 0

Written down value 0 0 0 0 0

Racks & storage 10 0.0010 0 0 0 0

Less Depreciation 0 0 0 0 0

Written down value 0 0 0 0 0

Computers/ Printers /Photocopier/Electronic gadget 15 0.0010 0 0 0 0

Less Depreciation 0 0 0 0 0

Written down value 0 0 0 0 0

Total less depreciation 0 0 0 0 0

Total written down value 0.0089 0.0083 0.0079 0.0075 0.0071

 Assumption
The entire projection is based on the assumption that the sales for 5 years will be

All figures are in lakhs

31/03/24 31/03/25 31/03/26 31/03/27 31/03/28

0 0 0 0 0

Also the total expense for the firm during the projection years will be as follows

31/03/24 31/03/25 31/03/26 31/03/27 31/03/28

0.024 0.11 0.12 0.13 0.14

• The depreciation is as follows

Particulars Value

Building 5%

machinery /Equipments 15%

Furniture & fixtures 10%

Racks & storage 10%

Computers/ Printers /Photocopier/Electronic gadget 15%

• Cost of the land or building is based on the basis of current rate

• Cost of machinery is based on the quotation submitted by the supplier

• Value of raw materials & utility charges as per the current market conditions

• All other assumptions are calculated based on the basis of experience of the promoter and deep study

on the working of similar model

This report is created using www.finline.in . Finline bears no financial responsibility on or behalf of any of the
authorized signatories
 Conclusion
The project as a whole describes the scope and viability of the Service industry and mainly of the financial,
technical and its market potential.The project guarantee sufficient fund to repay the loan and also give a good
return on capital investment. When analyzing the social- economic impact, this project is able to generate an
employment of 5 and above. It will cater the demand of Service and thus helps the other business entities to
increase the production and service which provide service and support to this industry. Thus more cyclic
employment and livelihood generation. So in all ways we can conclude the project is technically and socially
viable and commercially sound too.