project feasibility report on a instiutes school college

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

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POWER

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• 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.

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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.