SRI RAHULA COLLAGE ANURADHAPURA Mr. R. N. Thennakoon 623/22, Freeman Mawatha, Anuradhapura 025-2226255 / 025-4934081-3 [email protected] Prepared By 0773924536 - 0776547346 - 0727203333 - 0727103333 [email protected] Sri Rahula Collage-Anuradhapura CONTENTS Executive Summary 03 - 03 Sector Background 04 - 06 The Current Project/Business 07 - 11 The Propose Project/Business 12 - 13 Marketing Plan 14 - 16 Production/Service Plan 17 - 18 Management and Administration Structure 19 - 20 Finance Plan 21 - 28 Page 2 of 28 The Biz Partner Sri Rahula Collage-Anuradhapura 1.0. Executive Summary Name of the business/project : SRI RAHULA COLLAGE Sector/Sub Sector : Education Directors/Proprietors : Mr. R. N. Thennakoon National Identity Card No and Age : 750922350V Address of the Business/project : 623/22, Freeman Mawatha, Anuradhapura Telephone/Fax : 025-2226255 / 025-4934081-3 E-mail/Web : [email protected] Existing Year Year 1 No of students Male : 409 535 Female : 352 466 No of Academic staff Male : 11 20 Female 33 45 No of Non Academic staff Male : 3 4 Female 4 6 Annual direct materials cost : LKR 2,700,000 2,970,000 Annual direct labor cost : LKR 17,214,756 26,692,085 Annual production overhead cost : LKR 4,193,000 5,450,900 Annual management & administration cost : LKR 260,000 338,000 Annual marketing cost : LKR 175,000 525,000 Annual net sales : LKR 63,011,100 84,640,500 Annual gross profit : LKR 40,688,028 61,522,426 Annual net profit : LKR 21,251,074 24,662,787 Rate of net profit before tax : 40% 34% Rate of return : 19% 7% Break even point : LKR 6,766,592 9,720,390 Page 3 of 28 The Biz Partner Sri Rahula Collage-Anuradhapura 2.0. Sector Background 2.1. Education in Sri Lanka Education in Sri Lanka has a long history which dates back two millennia and the Constitution of Sri Lanka provide for education as a fundamental right. The Sri Lanka's population has a literacy rate of 92%, higher than that expected for a third world country; it has the highest literacy rate in South Asia and overall, one of the highest literacy rates in Asia. Education plays a pivotal role in the life and culture of the country and dates back to 543 BC. Modern education system was brought about with the integration of Sri Lanka in to the British Empire in the 19th century and it falls under the control of both the Central Government and the Provincial Councils, with some responsibilities lying with the Central Government and the Provincial Council having autonomy for others. Sri Lankan government provides free education, scholarships for disadvantaged students, mid- day meals, free textbooks, free uniforms, and subsidized transport. This enabled Sri Lanka to achieve an adult literacy rate of 92.5%. Sri Lanka was an early achiever in terms of the Millennium Development Goal of universal primary education, having reached 98% primary enrollment. The government free education system in Sri Lanka consists of several institutes: (1) Schools that offer primary education (grades 1−5). (2) Schools that offer secondary education (grades 6−11) up to O/L examination. (3) Schools that offer senior secondary education (grades 12−13) up to A/L examination. (4) National Universities. (5) Technical education and vocational training (TEVT). 2.2. Performance of School Education Sector in Sri Lanka # Capital Expenditure for constructions and repairs of school buildings is Rs.Mn. 8292.46 in year 2014. # Investment on purchasing school furniture and equipment is Rs.Mn. 2639.90 in year 2014. # The student percentage of receiving more than 70% at the grade five scholarship examination has been increased up to 78.9% in the year 2014. # 66.67% students were qualified for G.C.E. (A/L) in the year 2014. # 66.43% students were qualified for university education in the year 2014. appeared 247376 students and qualified 149,489 students. # Provision of text books and uniforms in time. # Printing and distribution of Teacher Instructional Manuals and syllabus in time # Broadcasting and publication of programs via media and provision of facilities to access for study materials through internet. Source: Annual Performance Report, Ministry of Education, Sri Lanka, 2014. Page 4 of 28 The Biz Partner Sri Rahula Collage-Anuradhapura 2.3. Private and International Schools in Sri Lanka In addition to government schools, there are International and Private schools in Sri Lanka. International Schools charge fees and they have separate curriculum and education is usually in English medium. International Schools are popular among families who want their children to study in English medium, possible with a view to continuing their studies overseas. Some parents have to put their child in a private school when they are not selected to a popular government school. Many schools have traditional teacher-led approach, especially even in very young ages children are forced to learn heavy subject contents. These schools aim at teaching to help pass examinations, so they can claim that they produce students with best grades. However some schools offer student-oriented inquiry based teaching methodologies. Some international and private schools teach some parts of Sri Lankan national curriculum and many schools offer Sinhala or Tamil as second language. Different schools follow different types of curricula, some of the curricula are designed internally by school authorities. These schools do not provide knowledge relevant to national needs but they provide opportunities to enter a new world globally and may secure good employment. A successful education system will focus on learning, rather than schooling, and create an enabling environment that promotes creativity. It should improve the quality of basic and tertiary education, and provide opportunities for lifelong learning. 2.4. Importance of the Private School Education The private or semi government schools are very important to developing country like Sri Lanka because as a developing country we provide government education totally free in presently. The people request to allocate 6% of the GDP for education but every government have faced more difficulties when allocating 6% from GDP therefore private or semi government schools are important to reduce educational expenses but government supervision and teach according to government curriculum is needed. As a result of the disparity in quality amongst the schools in the Sri Lankan education system, there is very great competition amongst parents to enroll their children in recognized National Schools. The struggle to find places in these schools leads to a number of unfortunate consequences, including malpractice such as the forging of documents attesting to residence in the area and attempts at bribery. Increasing pressure through various means on school administrators has led to the entry of more students than can be accommodated comfortably within recognized schools, resulting in overcrowding, resource constraints and difficulties in administration. If government support to develop private or semi government schools the burden on the free education system is lowered.. Private schools and semi government schools in particular have a role to play in this regard, because they can be more flexible and responsive to change than Government schools, which need to change along with the entire education system. The heads of schools, government and private, must contribute to systemic change by proposing ways to increase the relevance of education to the needs of the nation. Page 5 of 28 The Biz Partner Sri Rahula Collage-Anuradhapura To create an effective education system, Sri Lanka needs to offer more autonomy to private sector educational institutions. In this respect, investments involving the private sector will become increasingly important. In addition to releasing more state resources for students who are affected by poverty, private sector education would provide an alternative mode of service delivery. These institutions would be compelled to offer high-quality services to remain viable in an economic context, where they are competing with public sector establishments that provide free education. This competition is particularly important in raising standards in both public and private sectors. 2.5. Global Education Today School education today is focused on establishing the fundamental literacy and numeracy skills of children, as well as developing their understanding of the world. These skills are increasingly necessary for life in the modern world, and are essential to the functioning of developed economies. For this reason, primary education is compulsory and provided by the state in almost all countries around the world. The second United Nations Millennium Development Goal was to ―ensure that, by 2015, children everywhere, boys and girls alike, will be able to complete a full course of primary schooling.‖ This goal was missed but significant progress has been made. In 1999, only 81% of children in the developing world attending primary school, and today the figure is around 92% — equivalent to 58 million children not in primary education. The world is changing fast. Boundaries—literal as well as figurative— are shifting and even disappearing altogether. The culture that once lived halfway around the world now lives just down the block. The ability to thrive in this new and rapidly changing environment is grounded in a globally focused curriculum. The 67.4 million children who are out of school are likely to encounter great difficulties in the future, as deficient or non-existent basic education is the root cause of illiteracy. With some 775 million adults lacking minimum literacy skills, literacy for all thus remains elusive. According to UNESCO, in the world today there are about 1 billion non-literate adults. This 1 billion is approximately 26 percent of the world's adult population. Women make up two- thirds of all non-literates. 98 percent of all non- literates live in developing countries. Millions of children in poorer countries can't read or do simple sums according to a United Nations report.