Aravali Institute of Management

Jodhpur
A Proposed Financial Plan on Campus Site at Aravali Nagar Kaparda, Jodhpur

Assumption
Initial Investment Rs. 14,32,50,000
Number of
student 240
Bank Interest Rate @ 12%
Land covered
(Sq. ft.) 279750
Bank Loan Rs. 5,00,00000
Rate of land
per (Sq. ft.) 333.33

Land
Investment(Rs.
) 93250000
 Cost Estimation
Construction Cost          
Quantity Size in Size in Rate per Sq.
Institute No. (ft.) (Sq. ft.) ft. (Rs.) Total (Rs.)
Room for classes (Lecture
theatre) 6 15x20 1800 1200 2160000
Library 1 30x40 1200 1200 1440000
Computer lab 1 40x60 2400 1200 2880000
Room for faculties
(inclusive of guest Room,
Account Dept.) 20 10x15 3000 1200 3600000
Reception 1 20x30 600 1200 720000
Store room 2 30x30 1800 1200 2160000
Canteen 1 30x30 900 1200 1080000
Conference room 1 20x30 600 1200 720000
Seminar hall (For Activities,
regular Assemblies) 1 30x50 1500 1200 1800000
Wash Room 2 10x15 300 1200 360000
Total
Amount
        (Rs.) 16920000
           
Hostel          
Room for students (inclusive
of girls & boys) 80 10x10 8000 1200 9600000
Guest room 15 10x10 1500 1200 1800000
Computer lab 2 15x20 600 1200 720000
Separate television hall 2 15x15 450 1200 540000
Dining hall 2 30x40 2400 1200 2880000
Mess center 1 15x20 300 1200 360000
Play ground 1 500x500 250000 1200 500000
Gymnasium for students 2 30x40 2400 1200 2880000
Total
Amount(Rs.
        ) 19280000
 Quantities
Requirements Material No. Amount/unit (Rs) Amount(Rs)
Computers 250 15000 3750000
Projectors 8 40000 320000
Internet Charge (LAN) & Expenses 1 100000 100000
Digital Photocopier 1 200000 200000
Printers 20 6000 120000
Generator 2 1800000 3600000
Chairs ( 600 plastic chairs+ 300 Pad (600*Rs.350+300*Rs.800
Chairs+500 others) 1400 +500*Rs.250) 575000
Hostel Bad 300 1500 450000
Tables in classes 150 700 105000
Almirah (Institute + Hostel) 150 3000 450000
Air Conditioners 60 20000 1200000
Library Books   1500000 1500000
Furniture (Desk Table) 50 1800 90000
Library Racks 20 1000 20000
Library Almirah 20 12000 240000
Library Furniture 15 2500 37500
Water Cooler 10 12000 120000
Air Cooler 50 6000 300000
Carrier 1 450000 450000
Other Expenses     172500
    Total Amount(Rs.) 13800000
 Quantity price/unit Annual
Fixed Expenses No. (Rs.) Amount(Rs.)
Director Salary 1 50000 600000
Faculty Salary (Inclusive of Accountant) 15 35000 6300000
Staff Salary 20 5000 1200000
Internet Expenses   30000 360000
Books & Teaching Material 240 12000 2880000

Scholarships & Awards     200000

Depriciatation   15000 180000

Contingency Fund     100000

Interest on Bank loan (12%) (5,00,00,000) Land Cost(Rs.
9,32,50,000)   1432500 17190000
Tax (30% of income)
(89160000-6000000(Bank Loan)-180000(Dep.)     24894000
Total
    Amount(Rs.) 53904000

Quantity Annual
Variable Expenses No. price/unit (Rs.) Amount(Rs.)
Electricity Expenses   50000 600000
Telephone Expenses   5000 60000
Water Expenses   1000 12000
Stationary   25000 300000
Diesel Fuel   50000 600000
Food expenses 240 70 6048000
Club Activities Expenses 27 10000 270000
Convocation Expenses 1 1000000 1000000
Industrial Visits 4 15000 60000
Other Certification Courses (DM, EM) 2 100000 200000
Newspapers & Magazines   4500 54000
Total
    Amount(Rs.) 9204000
 Annual Fee Structure

Advance Rs. (Admission) 10000

Hostel fee Annual (Rs.6000*12Months) 72000

Component First Year Second Year

Term-
Term-I Term-II Term-III Term-I II Term-III
(Rs.) (Rs.) (Rs.) (Rs.) (Rs.) (Rs.)
33,50
Academic Fee 33,000 33,500 33,500 0 33,500 33,000
Library 5,000 5,000 5,000 5,000 5,000 5,000
Computer & Internet Fee 4,000 4,000 4,000 4,000 4,000 4,000
Books & Teaching Material 4,000 4,000 4,000 4,000 4,000 4,000
Placement Fee - - - 2,000 2,000 2,000
Students Welfare 500 500 500 500 500 500
Alumni Life Membership - - - 500 1000 1,000

49,50
Total 46,500 47,000 47,000 0 50,000 49,500

Total Fee (Education inclusive Hostel fee) Rs.371500

Total Income( Rs. 371500*240 Students) Rs.89160000
 Calculation of Payback Period

Land Investment Rs. 93250000

Construction Cost Rs. 36200000
Requirements Material Rs. 13800000
Total Amount Initial (Rs.) Rs.143250000

Fixed Expenses Rs. 53904000

Variable Expenses Rs. 9204000
Total Expenses (Rs.) Rs. 63108000

Annual Income (Cash flow)= Total Income - Total Expenses Rs. 26052000

Pay Back Period= Initial Investment/Annual cash flow

= 5.50 Year

Prepared BY:
Presented to: Dilip Chouhan
Finance Club Arun Bhootra
Aravali Institute of Management, Jodhpur Lalit Ramchandani
PGDM (2009-11 Batch)
GKC Club
Aravali Institute of Management, Jodhpur

Date: 10 December2010