PROJECT FEASIBILITY REPORT

ON
A.B.C. 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
A.B.C.
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.)

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.)
50,000

MBA

60

MBA Actuarial Sciences

60

50,000

MBA Banking

60

50,000

MBA insurance business

MBA CAM

60

50,000

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 ABC 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

Description

2 Management buildings :-

ABC

20 Class Rooms
6 Staff rooms
4 Labs
12 Toilets

Blue
Prints

1 Conference Room
1 Auditorium
1 Library
1 seminar room
Administrative Office Building
Cafeteria
Play Ground
Parking
Open Area

ABC.

POWER ESTIMATION

R.K.O

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
No. of persons

Salary/Month

Director

Rs. 70,000

Deputy director

Rs. 55000

Registrar

Rs. 50,000

Administrative staff

10

Rs. 3,00,000

Accounts department

10

Rs. 3,00,000

Student counselor

Rs. 50,000

Faculty

25

Rs. 8,75,000

Visiting Faculty (Per Hour)

10

Rs. 2,00,000

Maintenance staff

Rs. 50,000

Office boys

Rs. 25,000

RK
O

Post

POWER

 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.
C
B
A

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

Total Cost (in Rs.)

Lab Equipments
Computers

60

20000

12,00,000

15,000

60,000

13

10,000

1,30,000

UPS (Imported)

60,000

60,000

Server

25,000

25,000

Hubs

16,000

32,000

Nodes

10

500

5,000

1000

5,000

50

40

2,000

167,000

1,67,000

Multimedia Projector

30

50,000

15,00,000

Telephones

40

900

36,000

Printers
UPS (Local)

Networking

Cabling (Feet)
Patch Cables
Media Projector

Air conditioners
Total Equipment Cost
Furniture & Fixtures
Total Fixed Cost

75000
3,29,70,000
30,00,000
3,59,70,000

FINANCIAL STATEMENTS

CASH ACCOUNT FOR THE YEAR 1

Particulars

Amount (in Rs.)

Particulars

opening balance

5,40,30,000Administrative expenses

Fees Recd

1,50,00,000 Rental

interest on FD @ 10 % p.a
Cafeteria

10,00,000 Communication Expenses

6,00,000 promotional expenses

Amount (in Rs.)

12,00,000
2,40,00,000
2,40,000
12,00,000

Salary

2,37,00,000

Power

24,00,000

Interest on Loan @ 10% p.a

10,00,000

AICTE registration chg

closing balance

Total

7,06,30,000

10,000
1,68,80,000

7,06,30,000

CASH ACCOUNT FOR THE YEAR 2

Particulars

Amount (in Rs.)

Particulars

opening balance

1,68,80,000

Fees Recd

4,50,00,000Administrative expenses

interest on FD @ 10 % p.a
Cafeteria

10,00,000 Rental
6,00,000 Communication Expenses

promotional expenses

Total

6,34,80,000

Amount (in Rs.)

12,00,000
2,40,00,000
2,40,000
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

6,34,80,000

CASH ACCOUNT FOR THE YEAR 3

Particulars
opening balance
Fees Recd
interest on FD @ 10 % p.a
Cafeteria

Amount (in Rs.)

Particulars

97,40,000
6,00,00,000Administrative expenses
10,00,000 Rental
6,00,000 Communication Expenses

promotional expenses

7,13,40,000

12,00,000
2,40,00,000
2,40,000
12,00,000

Salary

2,37,00,000

Power

24,00,000

Interest on Loan @ 10% p.a

10,00,000

closing balance

Total

Amount (in Rs.)

1,76,00,000

7,13,40,000

INCOME STATEMENT
Particulars

Revenues (A)

Year 1 ( in Rs.)

Year 2 (in Rs.)

Year 3 ( in Rs.)

1,50,00,000

4,50,00,000

6,00,00,000

12,00,000

12,00,000

12,00,000

2,40,00,000

2,40,00,000

2,40,00,000

2,40,000

2,40,000

2,40,000

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
32,97,000

10,00,000
32,97,000

10,00,000
32,97,000

3,00,000

3,00,000

3,00,000

5,73,47,000

5,73,37,000

5,73,37,000

(4,23,47,000)

(1,23,37,000)

26,63,000

6,00,000

6,00,000

6,00,000

10,00,000

10,00,000

10,00,000

(4,07,47,000)

(1,07,37,000)

42,63,000

General and administrative expenses

Administrative expenses
Rental
Communication Expenses
promotional expenses

Depreciation on equipment
Depreciation on furniture
AICTE registration chg

Subtotal (B)
Operating income (A-B)

10,000

Other incomes
Cafeteria
Interest on FD @ 10% pa
Net Profit / Loss

Particulars

BALANCE SHEET
Year 1
( in Rs.)

Year 2
( in Rs.)

Year 3
( in Rs.)

1,00,00,000

1,00,00,000

1,00,00,000

ASSETS
Fixed Assets
Fixed deposits

Equipment
less: depreciation

3,29,70,000

2,96,73,000
2,63,76,000
32,97,000

32,97,000 2,96,73,000 32,97,000

2,63,76,000

Furniture & fixtures

30,00,000

2,30,79,000

27,00,000
24,00,000

less: depreciation

27,00,000
3,00,000

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
Rasdeep Anand & Mohit Mittal

2,00,00,000

64,17,667

(1,35,82,333)

64,17,667 (35,79,000)

2,00,00,000

64,17,667

(1,35,82,333)

64,17,667 (35,79,000)

3,50,00,000

2,14,17,666

(1,35,82,334)

2,14,17,666 (35,79,000)

1,78,38,666

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

Net Profit / Net Loss

Dakshesh Rawat
Net Profit / Net Loss

Rohit Gujral Collections Ltd.

Net Profit / Net Loss

28,38,667
28,38,667

14,21,000

42,59,667

28,38,667
28,38,667

14,21,000

42,59,667

1,78,38,666
14,21,000

1,92,59,666

Loans and Advances

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.