By Jaideep Sarin, IANS,
Chandigarh : Business honchos, take note. In times of recession, a company floated and managed by schoolchildren in Chandigarh has given a dividend of 900 percent to its shareholders.
‘InsPirated’ – the company that is inspired to succeed and calls itself pirates by choice – run by the students of Chandigarh’s Vivek High School has notched up a revenue which is over 36 times its original capital of Rs.8,000 and has a profit of over 11 times – making them business tycoons in their own right.
The company, which is part of the Junior Achievement (J.A.) company programme, is the 13th company in Vivek High and the only one to have had such a high revenue and dividend.
The company sold food products under the brand names Ccap-o-corn and Ccap-o-king, did bookbinding, sold paper products and even made chalk to generate revenue. The products are sold within the school where the company does not have a monopoly and faces competition from the school canteen.
Run entirely by select Class 11 students with the help of the commerce department teachers of the school, the group of 33 students – 20 of them girls – have had their first shot at business management. All student members are on the board of directors (BoD) of the company.
Started in October last year with a capital of just Rs.8,000 – 800 shares of Rs.10 each distributed among schoolchildren, teachers and staff – the company had a gross revenue of nearly Rs.290,000. The profit alone was over Rs.90,000 before the company was officially liquidated at the end of the term.
“These children have done wonderfully with the company. You have to see their enthusiasm in doing things all by themselves to manage the company – right from production aspects to making financial reports,” school principal Daman Duggal told IANS.
InsPirated president Sahil Chopra said: “Coming in at 5 a.m., even in peak winter, and doing everything ourselves has been a great experience for us. Joining the company is voluntary for students.”
Against 400 shares offered initially, there were 1,200 applicants from among school students, teachers and staff. Finally, 800 shares were allotted with fixed limits for the BoD, principal and staff.
“The company hires staff from other classes on daily wages and pays them according to work done. One kg of capsicum cutting fetches Rs.2 per student,” said Vineet Dhadly, its vice president, personnel.
The company has its full hierarchy of top management, including the president, vice presidents for finance, personnel, production, sales, marketing and inventory, managers and even a company secretary.
“We prepare performance reports every week. All entries of purchases, stocks used and sales are made as in any big company. All records are computerised,” said Kunwarbir Singh, the company’s vice president, finance.
“The company means a lot of hard work and effort. Food products account for most of our revenue (worth about Rs.230,000). We get complaints sometimes and look into them immediately. Company members who report late are penalised. Our parents have been very supportive with this concept even though we have to come very early and go back late from school,” vice presidents Muskan Bajaj, Chandrika Ahuja, Priya Arora, Harsimar Kaur and Abir Saraon and company secretary Arushi Ahluwalia pointed out.
Principal Duggal said the concept was started in 1995-96 from a similar J.A. programme in the United States.
“J.A.-India was launched last year only and one school (in Mumbai) and a college are part of it. Vivek High has been doing it for over 13 years. The companies have evolved over the years,” Mushtaq Ahmed, commerce department faculty member and teacher-in-charge of the J.A. company, said.
Duggal said: “The school has a licence from the J.A.-India to run the company. Our children have made presentations to KPMG and HSBC. The experience that these children have gained will be counted by the corporate sector when they enter the corporate world.”
With ‘InsPirated’ being liquidated after a successful run in a slowdown year, stakes will be high for the new company to be floated this year by school students. “We will bully them to show results,” the outgoing team laughs off.
(Jaideep Sarin can be contacted at [email protected])