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Project Feasibility Report On A Instiutes School College
Project Feasibility Report On A Instiutes School College
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. MBA 2.
MBA – Actuarial Sciences 3. MBA – Banking R.K.O. 4. MBA – insurance business 5. MBA
– computer aided management 6. MBA – international business
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.) Capital Cost * Working Capital * 10,00,00,000 4,59,70,000
5,40,30,000
PROPOSED COURSES
NAME OF THE COURSE MBA MBA Actuarial Sciences MBA Banking MBA insurance business
MBA CAM MBA international business EXPECTED STUDENTS 60 60 60 60 60 60 SUGGESTED
FEE (in Rs.) 50,000 50,000 50,000 50,000 50,000 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.
OF THE CAMPUS
LAYOUT
2 Management buildings :20 Class Rooms 6 Staff rooms 4 Labs 12 Toilets 1 Conference
Room 1 Auditorium 1 Library 1 seminar room
Description
R.K.O.
Cafeteria
Play Ground
Parking
POWER ESTIMATION
The 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.
R.K.O
POWER
RK 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
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.
O K R
Provision
FINANCIAL FEASIBILITY
CAPITAL REQUIREMENTS
TOTAL INVESTMENT – 10,00,00,000 MRB – 2,00,00,000 MR A – 2,00,00,000 Rohit
Gujral Collections Ltd. – 3,50,00,000 Bank Loan – 2,50,00,000
EQUIPMENT Equipments Cost (in Rs.) DETAILS Units
Lab Equipments Computers Printers UPS (Local) UPS (Imported) Server Networking Hubs
Nodes Cabling (Feet) Patch Cables Media Projector Multimedia Projector Telephones
Air conditioners Total Equipment Cost Furniture & Fixtures Total Fixed Cost 5 10
1000 50 1 30 40 16,000 500 5 40 167,000 50,000 900 60 4 13 1 1 20000 15,000 10,000
60,000 25,000
32,000 5,000 5,000 2,000 1,67,000 15,00,000 36,000 75000 3,29,70,000 30,00,000
3,59,70,000
FINANCIAL STATEMENTS
CASH ACCOUNT FOR THE YEAR 1 Particulars
opening balance Fees Recd interest on FD @ 10 % p.a
Cafeteria
Particulars
Salary Power Interest on Loan @ 10% p.a AICTE registration chg closing balance
Total
7,06,30,000
7,06,30,000
CASH ACCOUNT FOR THE YEAR 2 Particulars
opening balance Fees Recd interest on FD @ 10 % p.a
Cafeteria
Particulars
promotional expenses Salary Power Interest on Loan @ 10% p.a closing balance
Total
6,34,80,000
6,34,80,000
CASH ACCOUNT FOR THE YEAR 3 Particulars
opening balance Fees Recd interest on FD @ 10 % p.a
Cafeteria
Particulars
promotional expenses Salary Power Interest on Loan @ 10% p.a closing balance
Total
7,13,40,000
7,13,40,000
INCOME STATEMENT
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
5,73,47,000 (4,23,47,000)
5,73,37,000 (1,23,37,000)
5,73,37,000 26,63,000
ASSETS
Fixed Assets Fixed deposits 1,00,00,000 1,00,00,000 1,00,00,000
3,29,70,000
2,96,73,000
2,63,76,000
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
1,68,80,000 5,92,53,000
97,40,000 4,85,16,000
1,76,00,000 5,27,79,000
LIABILITIES
Capital
Ankit Nag Net Profit / Net Loss 2,00,00,000 (1,35,82,333) 64,17,667 64,17,667
(35,79,000) 28,38,667 28,38,667 14,21,000 42,59,667
2,00,00,000 (1,35,82,333)
3,50,00,000
2,14,17,666
1,78,38,666
(1,35,82,334)
2,14,17,666 (35,79,000)
1,78,38,666
14,21,000
1,92,59,666
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.