PGP-DM- 7 @SPJIMR

Finance for NGOs

Application Exercise

Batch -7
Semester -1 Contact -1
APPLICATION EXERCISE: 1

 Each participant to write a statement for his/her organization with respect to

policies of the organization with respect to financial strategy and also the financial
goal of the organization.
 Analyse the financial statements of Agilent Foundation (given in the course hand
out) by using ratio analysis and provide a summary of your findings with
interpretation. How is the organization doing? Where they should improve?
How they should improve?
 Each participant to analyze financial statements of his/her own organization and
prepare interpretative report of same for submission.

Last Date of Submission: 24th February, 2015

RATIO ANALYSIS SPREADSHEET

BALANCE SHEET RATIOS: Stability (Staying Power)

1 Current
Current Assets
#DIV/0!
Current Liabilities
2 Quick
Cash + Accts. Rec.
#DIV/0!
Current Liabilities
3 Debt-to-Worth
Total Liabilities
#DIV/0!
Net Worth

INCOME STATEMENT RATIOS: Profitability (Earning Power)

4 Gross Margin
Gross Profit
#DIV/0!
Sales
5 Net Margin
Net Profit Before Tax
#DIV/0!
Sales

ASSET MANAGEMENT RATIOS: Overall Efficiency Ratios

6 Sales-to-Assets
Sales
#DIV/0!
Total Assets
7 Return on Assets

Time durations given are approximate, for guidance only and will vary from person to person
-1-
PGP-DM- 7 @SPJIMR
Application Exercise

Batch -7
Semester -1 Contact -1
Net Profit Before Tax
#DIV/0!
Total Assets
8 Return on Investment
Net Profit Before Tax
#DIV/0!
Net Worth

ASSET MANAGEMENT RATIOS: Working Capital Cycle Ratios

9 Inventory Turnover
Cost of Goods Sold
#DIV/0!
Inventory
10 Inventory Turn-Days
360 360
#DIV/0!
Inventory Turnover
11 Accounts Receivable Turnover
Sales
#DIV/0!
Accounts Receivable
12 Accounts Receivable Turn-Days
360 360
#DIV/0!
Accts. Rec. Turnover
13 Accounts Payable Turnover
Cost of Goods Sold
#DIV/0!
Accounts Payable
14 Average Payment Period
360 360
#DIV/0!
Accts. Pay. Turnover

Project: Bhujbal Foundation (Meluha)

Budget Period: 1st April 2015 - 31st March 2016
Budget Currency: Indian Rupees
Total Budget: 10,56,615 only

Unit
All figures in USD Unit Cost Quantity Total
Cost

A Staff Costs 384,000

A1 Project Manager (PM) Month 20,000 12 240,000

A2 Support Staff (I) Month 12

Time durations given are approximate, for guidance only and will vary from person to person
-2-
PGP-DM- 7 @SPJIMR
Application Exercise

Batch -7
Semester -1 Contact -1
7,000 84,000

A3 Support Staff (II) Month 5,000 12 60,000

A3 Support Staff (III) Month 5,000 12 60,000

B Programme Administration 102,200

B1 Stationery Month 200 12 2,400

B2 Phone/fax Month 1,000 12 12,000

B4 Courier Month 200 24 4,800

B5 Office rent Month - 12 -

B6 Electricity Month 2,500 12 30,000

B7 Bank charges Month 500 10 5,000

B9 Books, manuals, publications Month 500 12 6,000

B10 Other month 3,500 12 42,000

C Local Transport 180,000

Vehicle
C1 Fuel (Local Car) Month 3,000 36 108,000
Vehicle
C2 local transport Month 2,000 36 72,000

D Capital Equipment 40,100

D1 Computer hardware (inc. printer) Item 20,000 2 40,000

D2 Photocopier 1 200 100

D4 Office furniture/equipment - -

E Training 240,000

E1 Training materials Workshop 7,000 12 84,000

E2 Workshop costs Workshop 3,000 12 36,000

E3 Other 10,000 12 120,000

F Materials Development

Time durations given are approximate, for guidance only and will vary from person to person
-3-
PGP-DM- 7 @SPJIMR
Application Exercise

Batch -7
Semester -1 Contact -1
60,000
F1 Design work Manual - 0 -

F2 Production month 5,000 12 60,000

F3 Other -

Z Contingenc (5% of total budget) 50,315

TOTAL 1,056,615

Time durations given are approximate, for guidance only and will vary from person to person
-4-