project feasibility report on a instiutes school college
DESCRIPTION
Project Feasibility Report on a Instiutes School CollegeTRANSCRIPT
PROJECT FEASIBILITY REPORT ON
R.K.O. INSTITUTE OF MANAGEMENT
INTRODUCTION
PROJECT BRIEF
Describes the investment opportunity about setting up a Institute of providing educational & training services in Management sector.
Institute is established in outskirts of Delhi. It offer following courses in the initial phase :-
1. MBA2. MBA – Actuarial Sciences3. MBA – Banking4. MBA – insurance business5. MBA – computer aided management6. MBA – international business
R.K.O.
PROPOSED COURSES
PROJECT COST
Total investment in the project is around Rs.10 crores including a working capital requirement of approx Rs. 5.40 crore.
Total Investment (Rs.)
10,00,00,000
Capital Cost * 4,59,70,000
Working Capital * 5,40,30,000
NAME OF THE COURSE
EXPECTED STUDENTS
SUGGESTED FEE (in Rs.)
MBA 60 50,000
MBA Actuarial Sciences 60 50,000
MBA Banking 60 50,000
MBA insurance business 60 50,000
MBA CAM 60 50,000
MBA international business 60 50,000
CURRENT INDUSTRY SCENARIO
In 1950, the Department of Commerce of the Andhra University started the first M.B.A. program in India.
In 1963, Indian Institute of Management, Ahmadabad was set up in collaboration with the Harvard Business School.
The 1950s and 1960s witnessed the growth of commerce education and 1970s and 1980s witnessed the growth of Management Education in India.
Since then there has been a tremendous growth of management institutes in our society but still there is a very much need for more of them.
TECHNICAL FEASIBILITY
PROPOSED CAPACITY
The capacity of the “R.K.O Institute of Management” at any point in time is almost 400 students per annum.
INDUSTRY OVERVIEW
On India, around 1 lakh management students become graduates and from which around 66.16 % students take Post-Graduate courses in management.
In year 2000 there are 70,000 MBA seats offered by the institutes which is now increased to 1,20,000 seats in the year 2009 which is a increase of 71.4 % and is expected to increase further on.
LAYOUT OF THE CAMPUS
Description
2 Management buildings :-
20 Class Rooms
6 Staff rooms
4 Labs
12 Toilets
1 Conference Room
1 Auditorium
1 Library
1 seminar room
Administrative Office Building
Cafeteria
Play Ground
Parking
Open Area
Blue Prints
R.K.O
R.K.O.
POWER ESTIMATIONThe power consumed in the institute will be of approx Rs.20,00,000 consuming an estimated amount of
4,00,000 units of electricity at the rate of Rs.5 per unit.
MANPOWER REQUIREMENTSPost No. of persons Salary/Month
Director 1 Rs. 70,000
Deputy director 1 Rs. 55000
Registrar 1 Rs. 50,000
Administrative staff 10 Rs. 3,00,000
Accounts department 10 Rs. 3,00,000
Student counselor 2 Rs. 50,000
Faculty 25 Rs. 8,75,000
Visiting Faculty (Per Hour) 10 Rs. 2,00,000
Maintenance staff 2 Rs. 50,000
Office boys 5 Rs. 25,000
RK
O
POWER
R.K.O
• The cleaning and security agency will be outsourced from Classic Facility Management Services (cleaning) and Securicar Services (security) at an annual contract for 3 years and 2 years respectively.
• The annual amount payable to Classic Facility Management Services is Rs. 1,20,000.
• The annual amount payable to Securicar Services is Rs. 2,00,000 with certain clauses.
SALES PROJECTION
open invitations to the prospective candidates i.e. a total of 100 students in the first year.
200 students and 400 students through its massive promotional strategies in 2nd year and 3rd year respectively.
MARKET ANALYSIS
TARGET MARKET
It is divided into various market segments which depends primarily on the city and locality in which this institute is to be established.
This target market is divided into two major groups :-
Students – candidates coming directly from graduation.Candidates with work experience.
STRATEGIC PLAN
Provision of high quality education and that too in cities & places where quality education is not easily available.
Good quality education would mean hiring qualified instructors and offering a reasonably wide range of education services in a technologically well equipped environment.
R
K
O
FINANCIAL FEASIBILITY
CAPITAL REQUIREMENTS
TOTAL INVESTMENT – 10,00,00,000MRB – 2,00,00,000MR A – 2,00,00,000Rohit Gujral Collections Ltd. – 3,50,00,000Bank Loan – 2,50,00,000
Equipments Units Cost (in Rs.) Total Cost (in Rs.)
Lab Equipments
Computers 60 20000 12,00,000
Printers 4 15,000 60,000
UPS (Local) 13 10,000 1,30,000
UPS (Imported) 1 60,000 60,000
Server 1 25,000 25,000
Networking
Hubs 5 16,000 32,000
Nodes 10 500 5,000
Cabling (Feet) 1000 5 5,000
Patch Cables 50 40 2,000
Media Projector 1 167,000 1,67,000
Multimedia Projector 30 50,000 15,00,000
Telephones 40 900 36,000
Air conditioners 75000
Total Equipment Cost 3,29,70,000
Furniture & Fixtures 30,00,000
Total Fixed Cost 3,59,70,000
EQUIPMENT DETAILS
FINANCIAL STATEMENTS
CASH ACCOUNT FOR THE YEAR 1
Particulars Amount (in Rs.) Particulars Amount (in Rs.)
opening balance 5,40,30,000Administrative expenses 12,00,000
Fees Recd 1,50,00,000 Rental 2,40,00,000
interest on FD @ 10 % p.a 10,00,000 Communication Expenses 2,40,000
Cafeteria 6,00,000 promotional expenses 12,00,000
Salary 2,37,00,000
Power 24,00,000
Interest on Loan @ 10% p.a 10,00,000
AICTE registration chg 10,000
closing balance 1,68,80,000
Total 7,06,30,000 7,06,30,000
CASH ACCOUNT FOR THE YEAR 2
Particulars Amount (in Rs.) Particulars Amount (in Rs.)
opening balance 1,68,80,000
Fees Recd 4,50,00,000Administrative expenses 12,00,000
interest on FD @ 10 % p.a 10,00,000 Rental 2,40,00,000
Cafeteria 6,00,000 Communication Expenses 2,40,000
promotional expenses 12,00,000
Salary 2,37,00,000
Power 24,00,000
Interest on Loan @ 10% p.a 10,00,000
closing balance 97,40,000
Total 6,34,80,000 6,34,80,000
CASH ACCOUNT FOR THE YEAR 3
Particulars Amount (in Rs.) Particulars Amount (in Rs.)
opening balance 97,40,000
Fees Recd 6,00,00,000Administrative expenses 12,00,000
interest on FD @ 10 % p.a 10,00,000 Rental 2,40,00,000
Cafeteria 6,00,000 Communication Expenses 2,40,000
promotional expenses 12,00,000
Salary 2,37,00,000
Power 24,00,000
Interest on Loan @ 10% p.a 10,00,000
closing balance 1,76,00,000
Total 7,13,40,000 7,13,40,000
Particulars Year 1 ( in Rs.) Year 2 (in Rs.) Year 3 ( in Rs.)
Revenues (A) 1,50,00,000 4,50,00,000 6,00,00,000
General and administrative expenses
Administrative expenses 12,00,000 12,00,000 12,00,000
Rental 2,40,00,000 2,40,00,000 2,40,00,000
Communication Expenses 2,40,000 2,40,000 2,40,000
promotional expenses 12,00,000 12,00,000 12,00,000
Salary 2,37,00,000 2,37,00,000 2,37,00,000
Power 24,00,000 24,00,000 24,00,000
Interest on Loan @ 10% p.a 10,00,000 10,00,000 10,00,000
Depreciation on equipment 32,97,000 32,97,000 32,97,000
Depreciation on furniture 3,00,000 3,00,000 3,00,000
AICTE registration chg 10,000
Subtotal (B) 5,73,47,000 5,73,37,000 5,73,37,000
Operating income (A-B) (4,23,47,000) (1,23,37,000) 26,63,000
Other incomes
Cafeteria 6,00,000 6,00,000 6,00,000
Interest on FD @ 10% pa 10,00,000 10,00,000 10,00,000
Net Profit / Loss (4,07,47,000) (1,07,37,000) 42,63,000
INCOME STATEMENT
BALANCE SHEET
Particulars Year 1
Year 2
Year 3
( in Rs.) ( in Rs.) ( in Rs.)
ASSETS Fixed Assets Fixed deposits
1,00,00,000
1,00,00,000
1,00,00,000
Equipment 3,29,70,000
2,96,73,000
2,63,76,000 less: depreciation 32,97,000 2,96,73,000 32,97,000
2,63,76,000
32,97,000
2,30,79,000 Furniture & fixtures 30,00,000
27,00,000
24,00,000 less: depreciation
3,00,000
27,00,000
47,93,000 24,00,000 3,00,000 21,00,000
Current Assets Cash in hand and bank 1,68,80,000 97,40,000 1,76,00,000 Total Assets 5,92,53,000 4,85,16,000 5,27,79,000
LIABILITIES
Capital
Ankit Nag 2,00,00,000 64,17,667 28,38,667
Net Profit / Net Loss (1,35,82,333) 64,17,667 (35,79,000) 28,38,667 14,21,000 42,59,667
Dakshesh Rawat 2,00,00,000 64,17,667 28,38,667
Net Profit / Net Loss (1,35,82,333) 64,17,667 (35,79,000) 28,38,667 14,21,000 42,59,667
Rohit Gujral Collections Ltd. 3,50,00,000 2,14,17,666 1,78,38,666
Net Profit / Net Loss (1,35,82,334) 2,14,17,666 (35,79,000) 1,78,38,666 14,21,000 1,92,59,666
Loans and Advances
Bank Loan 2,50,00,000 2,50,00,000 2,50,00,000
Total Liabilities 5,92,53,000 4,85,16,000 5,27,79,000
CONCLUSION
• There is a massive need of business education in India thus we took the opportunity to start a MBA institute.
• It had intake of 100 students in the 1st year and due to our massive promotion techniques it was increased to 200 students & 400 students in 2nd and 3rd Year respectively.
• Also , the funds were utilized majorly in the equipments purchased. The land and building was taken on lease.
• Overall, the business feasibility shows that the business is feasible, successful and is profitable from 3rd year. So, overall the business idea has a huge potential.
