: Promoters Contribution : Term Loan Total Profitability at optimum level. : Optimum Utilization(4 th Year)

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1 PROJECT SUMMARY 1 The Proposal : To set up a financial hub/institution for running professional long/short term courses in the financial sector. 2 Proposed Location of the project : Ernakulam 3 Products/Services and installed capacity : financial institution, with an intake capacity of 625 students 4 Market : The financial services industry is one of the world s largest industries and offers excellent career opportunities around the globe. Financial Services is the industry that encompasses a wide range of activities. India has one of the most developed financial markets in the developing world. The role of an integrated financial infrastructure is to stimulate and sustain the economic growth. There is good scope for a financial institution to offer courses in the areas of Finance, Banking, Insurance, capital markets etc. 5 Plant & Machinery : NA 6 Cost of Project Rs. Lakhs : Land (Rs per cent X 100 cents) : Land Development : Building & Civil Works (75000 Sq. Ft) (Including internal Electrification & Plumbing) : Utilities & Misc. Fixed assets : Prel. & Preoperative Expenses (Including the interest during implementation and other preliminary expenses) : Contingency : Margin Money for Working Capital Means of Finance : Promoters Contribution : Term Loan Profitability at optimum level : Optimum Utilization(4 th Year) 90% (% of installed capacity) : Sales Turnover, First Year (Rs. lakhs) : Profit before interest, depreciation & tax (Rs. lakhs) : Cash Profit (after interest) (Rs lakhs ) : Net Profit (PAT) (Rs. lakhs) Financial Indices : Debt Equity Ratio 1:1 : DSCR (average) 2.83 : Break Even Point % 44% 1

2 : IRR (%) 17.15% : Pay Back period (Years) 4.80 : Moratorium 1 Year Implement ation Period + 1 Year 10 Manpower : 95 Persons 11 Implementation Period : Implementation period considered at 12 months PROJECT DETAILS THE PROPOSAL The proposal is to set up a financial hub/institution offering diversified courses in the financial service sector. I. TECHNO ECONOMIC ASSESSMENT Location & Site: An area of approximately 100 cents is required for the project. The ideal location would be Ernakulam District. Courses offered The following courses can be offered FINANCE Master of Business Finance/Master of Financial Administration/ Financial Analysis and Control Chartered Financial Analysis (CFA) Chartered Accountancy /Cost and Management Accountancy /Company Secretary MBA with specialization in Finance and Marketing, International Finance Theory and Policy Analysis Management of Business Finance Certified Treasury Manager /Public Accountant/Investment Banker/Risk and Insurance Manager Fellowship Program in Finance/Banking Post Graduate Diploma in Financial Planning and Wealth Management Post Graduate Diploma in Advanced Financial Planning and Wealth Management (PGDAFPWM) Post Graduate Diploma In Banking Operations Certified financial planner Executive Programme in Wealth Management INSURANCE Actuarial Finance DIC B.A (Insurance) PG Diploma in Certified Risk and Insurance management Certificate course in intermediaries in Specific insurance subjects 2

3 Course for insurance agents/insurance managers B.S.C (with Actuarial science as a subject PG Diploma in Insurance Science PG Diploma in management of Insurance and financial services Master's program in Insurance Business CAPITAL MARKET International Post Graduate Diploma in risk Management Certificate course in Enterprise Risk Management Diploma is Treasury, Investment and Risk Management CAP PRO+ Specialized Program in Financial Market & Fund Management CAP PRO Specialized Program in Financial Market & Fund Management Special BRIDGE Program for BCOM/ BBA Specialized Program in Financial Market & Fund Management Special BRIDGE Program for BSC/ BA Specialized Program in Accounting Finance and Capital Markets Building Post graduate membership course in capital market and financial services One year Post Graduate Diploma in fundamentals of capital market development. PG Diploma in Financial Markets & Services Chartered Financial Analyst Equity Research Certification in Equities and Derivatives Diploma in Commodity Market Trading Certified Professional Trader / Market Professional/ Professional Arbitrager & Jobber/ Currency Trader / Commodities Trader/Certified Accounting & Financial Management Advanced Option Trader Diploma in Stock Market Trading and Operations, Diploma in Stock Analysis and Portfolio Management 25 courses among the above can be identified and offered with 1 batch per course in the first phase. Hence 25 class rooms and corresponding infrastructure facilities are required to be created. The total built up area required would approximately come to Sq. Ft. Cost of Project The total cost of the project is estimated at Rs lakhs. The details of the cost are as follows: Rs. Lakhs 1 Land (Rs per cent X 100 cents) 2 Land Development Building & Civil Works (75000 Sq. Ft) (Including internal Electrification & Plumbing) 4 Utilities & Misc Fixed assets

4 Means of Finance 5 Prel. & Preoperative Expenses (Including the interest during implementation and other preliminary expenses) 6 Contingency Margin Money for Working Capital The means of finance proposed is as follows: Rs. in Lakhs Promoters Term Loan The Debt Equity Ratio works out to 1:1 for the project. Cost of operation and Profitability The assumptions underlying profitability estimates are given below. CAPACITY (NEW UNIT) 1 Capacity 625 students on various courses offered 2 Capacity utilization INCOME(100% CAPACITY) 1 Tuition Fee Hostel accommodation rent Canteen facility Rent First year 50% Second year 60% Third year 70% Fourth year 80% Fifth year onwards 90% 625 Rs / month per student Rs per student per month Rs / Month EXPENSES Total 95 staff including 75 subject 1 Salaries Rs. 215 Lakhs per Year 2 Power cost Total Connected Load 100 KVA Power Utilization Pattern KSEB 80% Genset 20% Unit Rate (KSEB Including surcharge) Generator Rs. 4 Rs. 10 KSEB Fixed Charges/Month Rs Administrative expenses Rs. 10 lakhs in the initial year with 5 % increase there after 4 Selling overheads 1 % of sales with 5 % annual increase there after 5 Repairs & Maintenance 2.5 % of fixed assets 6 Insurance 0.25% of fixed assets with 5 % increase there 4

5 after Optimum Utilization(5 th Year) 90% (% of installed capacity) Sales Turnover(Rs. lakhs) Profit before interest, depreciation & tax (Rs. lakhs) Cash Profit (after interest) (Rs lakhs ) Net Profit (PAT) (Rs. lakhs) Debt Equity Ratio 1:1 DSCR (average) 2.83 Break Even Point % 44% IRR (%) 17.15% Pay Back period (Years) 4.80 II. MARKET ASSESSMENT The financial services industry is one of the world s largest industries and offers excellent career opportunities around the globe. Financial Services is the industry that encompasses a wide range of activities. India has one of the most developed financial markets in the developing world. The role of an integrated financial infrastructure is to stimulate and sustain the economic growth. There is good scope for a financial institution to offer courses in the areas of Finance, Accountancy, Banking, Insurance, capital markets etc. in Kerala. Tie ups with Corporates for providing training of newly recruited/ exiting employees in the financial sector can also be arranged. III. CONCLUSION The proposal is found to be technically feasible and economically viable. The selection of courses to be offered has an important role here. A good placement cell with tie up with industries would help attracting students. Disclaimer: The findings contained in this Project Profile are based on the initial information collated through primary and secondary research, which is indicative in nature. Reference herein to any specific commercial product,process, service by trade name,trademark, manufacturer, or otherwise, does not constitute or imply its endorsement, recommendation, or favoring byksidc or any entities thereof. 5