PROJECT FEASIBILITY REPORT (2)

PROJECT FEASIBILITY REPORT ON R.K.O. INSTITUTE OF MANAGEMENT: 

PROJECT FEASIBILITY REPORT ON R.K.O. INSTITUTE OF MANAGEMENT

INTRODUCTION: 

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 :- MBA MBA – Actuarial Sciences MBA – Banking MBA – insurance business MBA – computer aided management 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 PROPOSED COURSES 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

PowerPoint Presentation: 

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: 

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: 

LAYOUT OF THE CAMPUS Desc r iption 2 Manageme n t bui l dings :- 20 C l ass Ro o ms 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.

PowerPoint Presentation: 

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. MANPOWER REQUIREMENTS Post 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 RKO POWER R.K.O

PowerPoint Presentation: 

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 2 nd year and 3 rd year respectively.

MARKET ANALYSIS: 

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.

PowerPoint Presentation: 

STRATEGIC PLAN P rovision 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: 

FINANCIAL FEASIBILITY CAPITAL REQUIREMENTS TOTAL INVESTMENT – 10,00,00,000 Dakshesh Rawat – 2,00,00,000 Ankit Nag – 2,00,00,000 Rohit Gujral Collections Ltd. – 3,50,00,000 Bank Loan – 2,50,00,000

PowerPoint Presentation: 

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: 

FINANCIAL STATEMENTS

PowerPoint Presentation: 

CASH ACCOUNT FOR THE YEAR 1 Particulars Amount (in Rs.) Particulars Amount (in Rs.) opening balance 5,40,30,000 Administrative 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

PowerPoint Presentation: 

CASH ACCOUNT FOR THE YEAR 2 Particulars Amount (in Rs.) Particulars Amount (in Rs.) opening balance 1,68,80,000 Fees Recd 4,50,00,000 Administrative 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

PowerPoint Presentation: 

CASH ACCOUNT FOR THE YEAR 3 Particulars Amount (in Rs.) Particulars Amount (in Rs.) opening balance 97,40,000 Fees Recd 6,00,00,000 Administrative 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

PowerPoint Presentation: 

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

PowerPoint Presentation: 

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

PowerPoint Presentation: 

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: 

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 2 nd and 3 rd 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 3 rd year. So, overall the business idea has a huge potential.

THANK YOU : 

THANK YOU