Educational Initiatives Pvt. Ltd. (EI) was one of RS’s competitors and its biggest. It was incorporated in the year 2000 and was also a non-government company registered with the Registrar of Companies, Ahmedabad, India. Its authorized share capital was INR 12,000,000 and its paid-up capital was INR 8,909,781. It was involved in secondary/senior-secondary education. By the year 2018, EI had over 15 years of expertise in education, with a deep understanding of child psychology and efficient methods of teaching based on detailed research and a formidable database of student learning...

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CHOOSING THE RIGHT METHOD OF ANALYSIS

According to Hasija’s company guide, the edu-tech industry was facing fresh challenges almost every day to educate children in a better way in terms of affordability or an easy accessibility to information or both. But not all companies could turn their businesses into profitable ones. She added, “Knowing one’s competition makes it easy for one to perform well.” Hasija did some homework and found that “competitive analysis is understood as a driver of an organization’s strategy and affects how firms act and react in their industry. ..

THE DILEMMA

Hasija’s company guide was happy that she could come up with at least the input data required for comparison. The company guide said, “After knowing and calculating all the financial ratios of both RS and EI, you can know the companies’ financial position in the market. Also, the comparative analysis can be done between the financial statements of RS and EI for the years 2015-16 and 2016-17. ..

EXHIBITS

Exhibit 1: Balance Sheet - RS Education Solutions Pvt. Ltd.
Exhibit 2 : Statement of Profit and Loss - RS Education Solutions Pvt. Ltd.
Exhibit 3 : Balance Sheet – Educational Initiatives Pvt. Ltd.
Exhibit 4 : Statement of Profit and Loss – Educational Initiatives Pvt. Ltd.