Pre-Feasibility Study Prime Minister’s Small Business Loan Scheme

(Montessori School)

Small and Medium Enterprises Development Authority Ministry of Industries & Production
Government of Pakistan
www.smeda.org.pk
HEAD OFFICE
4th Floor, Building No. 3, Aiwan e Iqbal, Egerton Road, Lahore Tel 92 42 111 111 456, Fax 92 42 36304926-7 helpdesk@smeda.org.pk REGIONAL OFFICE PUNJAB 3rd Floor, Building No. 3, Aiwan e Iqbal, Egerton Road Lahore, Tel: (042) 111-111-456 Fax: (042)6304926-7 helpdesk.punjab@smeda.org.pk REGIONAL OFFICE SINDH 5TH Floor, Bahria Complex II, M.T. Khan Road, Karachi. Tel: (021) 111-111-456 Fax: (021) 5610572 helpdesk-khi@smeda.org.pk REGIONAL OFFICE KPK Ground Floor State Life Building The Mall, Peshawar. Tel: (091) 9213046-47 Fax: (091) 286908 helpdesk-pew@smeda.org.pk REGIONAL OFFICE BALOCHISTAN Bungalow No. 15-A Chaman Housing Scheme Airport Road, Quetta. Tel: (081) 831623, 831702 Fax: (081) 831922 helpdesk-qta@smeda.org.pk

September 2013

Pre-Feasibility Study

(Montessori School)

Table of Contents
1. DISCLAIMER .......................................................................................................................................... 3 2. PURPOSE OF THE DOCUMENT ......................................................................................................... 4 3. INTRODUCTION TO SMEDA............................................................................................................... 4 4. INTRODUCTION TO SCHEME............................................................................................................ 4 5. EXECUTIVE SUMMARY....................................................................................................................... 5 6. BRIEF DESCRIPTION OF PROJECT & PRODUCT ......................................................................... 6 7. CRITICAL FACTORS ............................................................................................................................ 6 8. INSTALLED & OPERATIONAL CAPACITIES ................................................................................. 7 9. POTENTIAL TARGET MARKETS/CITIES........................................................................................ 8 10. PROJECT COST SUMMARY ......................................................................................................... 8

10.1 PROJECT ECONOMICS .................................................................................................................... 8 10.2 PROJECT FINANCING .................................................................................................................... 10 10.3 PROJECT COST............................................................................................................................. 10 10.4 LAND REQUIREMENT .................................................................................................................... 10 I. BUILDING RENT ................................................................................................................................. 11 II. SUITABLE LOCATION.......................................................................................................................... 11 10.5 OFFICE EQUIPMENT DETAILS ....................................................................................................... 12 10.6 FURNITURE ................................................................................................................................... 13 10.7 HUMAN RESOURCE REQUIREMENT.............................................................................................. 14 10.8 KEY PERSONNEL .......................................................................................................................... 14 10.9 REVENUE GENERATION ................................................................................................................ 15 10.10 OTHER EXPENSE .......................................................................................................................... 16 11. 11.1 11.2 11.3 12. 13. ANNEXURE 1 .................................................................................................................................. 17 INCOME STATEMENT..................................................................................................................... 17 BALANCE SHEET ........................................................................................................................... 18 CASH FLOW STATEMENT.............................................................................................................. 19 USEFUL LINKS ............................................................................................................................... 20 KEY ASSUMPTIONS ...................................................................................................................... 21

2 September 2013

org. it is based upon certain assumptions which may differ from case to case. the material included in this document is based on data/information gathered from various reliable sources. the contained information may vary due to any change in any of the concerned factors. The prospective user of this memorandum is encouraged to carry out additional diligence and gather any information which is necessary for making an informed decision. For more information on services offered by SMEDA. and the actual results may differ substantially from the presented information.smeda. please contact our website: www. The contained information does not preclude any further professional advice. Although. its employees or agents do not assume any liability for any financial or other loss resulting from this memorandum in consequence of undertaking this activity. DISCLAIMER This information memorandum is to introduce the subject matter and provide a general idea and information on the said matter.pk 3 September 2013 .Pre-Feasibility Study (Montessori School) 1. SMEDA. due care and diligence has been taken to compile this document. The information has been provided on as is where is basis without any warranties or assertions as to the correctness or soundness thereof. including taking professional advice from a qualified consultant/technical expert before taking any decision to act upon the information. Although. however.

by helping increase the number. INTRODUCTION TO SCHEME Prime Minister’s ‘Small Business Loans Scheme’. and production. through development of the SME sector. The purpose of this document is to facilitate potential investors in Montessori School by providing them with a general understanding of the business with the intention of supporting potential investors in crucial investment decisions. INTRODUCTION TO SMEDA The Small and Medium Enterprises Development Authority (SMEDA) was established in October 1998 with an objective to provide fresh impetus to the economy through development of Small and Medium Enterprises (SMEs). which form basis of any Investment Decision. SMEDA has carried out ‘sectoral research’ to identify policy. access to finance. and certain industrial norms that become a guiding source regarding various aspects of business set-up and it’s successful management. The need to come up with pre-feasibility reports for undocumented or minimally documented sectors attains greater imminence as the research that precedes such reports reveal certain thumb rules. is designed to provide 4 September 2013 . start-up. strategic initiatives and institutional collaboration and networking initiatives. These services include identification of experts and consultants and delivery of need based capacity building programs of different types in addition to business guidance through help desk services. with an allocated budget of Rs. the document/study covers various aspects of project concept development. 4. Preparation and dissemination of prefeasibility studies in key areas of investment has been a successful hallmark of SME facilitation by SMEDA. finance and business management. Concurrent to the prefeasibility studies.0 Billion for the year 2013-14. best practices developed by existing enterprises by trial and error. for young entrepreneurs. The project pre-feasibility may form the basis of an important investment decision and in order to serve this objective. business development services. PURPOSE OF THE DOCUMENT The objective of the pre-feasibility study is primarily to facilitate potential entrepreneurs in project identification for investment.Pre-Feasibility Study (Montessori School) 2. marketing. Apart from carefully studying the whole document one must consider critical aspects provided later on. 5. scale and competitiveness of SMEs". 3. a broad spectrum of business development services is also offered to the SMEs by SMEDA. With a mission "to assist in employment generation and value addition to the national income.

Private sector with its investment capacity to provide adequately equipped and qualified staffed school systems is well positioned to capitalize on this opportunity for establishing viable school systems in the country. 5 September 2013 .29 years. and a debt : equity of 90 : 10 will be disbursed to SME beneficiaries across Pakistan. 1. Montessori school education is the first formal learning stage for a child.46 million with an Internal Rate of Return (IRR) of 48% and a payback period of 3. spacious classrooms. Advanced educational procedures will be practiced – teaching an extensive curriculum. through designated financial institutions. EXECUTIVE SUMMARY The fast paced life of the metropolitan cities is significantly influencing the life style of its inhabitants. 3. This has further added to complexity and competition of a metropolitan dweller.47 million as initial working capital.0. This includes a capital investment of Rs.72 million and a sum of Rs.000) beneficiaries. resulting in high demand for Montessori schools in metropolitan cities. Economic pressures are compelling both parents to work towards achieving and sustaining quality life standards. charging an affordable fee structure. covering. The Montessori school will have sophisticated infrastructural facilities. 2. The Montessori school business venture entails a total investment of about Rs. initially through National Bank of Pakistan (NBP) and First Women Bank Ltd.20 million. 5.Pre-Feasibility Study (Montessori School) subsidised financing at 8% mark-up per annum for one hundred thousand (100. Khyber Pakhtunkhwah. Sindh. As a result of these social changes. The growing population has somewhat exhausted the limited capacity of existing private as well as public primary school systems. (FWBL). The school will provide quality education starting at the Elementary level. This prefeasibility provides information on establishing a Montessori school in any metropolis of Pakistan. Gilgit Baltistan. using modern teaching methodology at par with international standards. The project is financed through 90% debt and 10% equity. the trend of sending children to Daycare Centers or to Montessori schools at a much earlier age is gaining rapid grounds. Balochistan. starting classes from Play-group to Class II (aged 3 – 7) focusing on middle income tier of the society. The Net Present Value (NPV) of the project is around Rs. and wide-ranging learning material from books to toys for a meaningful educational experience. Punjab. Small business loans with tenure upto 7 years. Azad Jammu & Kashmir and Federally Administered Tribal Areas (FATA).

20 million out of which the Capital cost is estimated at Rs. 3.72 million and working capital of Rs.5 Kanals to accommodate the proposed student strength. Each class level from Playgroup. 1. However. Therefore. establishment of elementary schools has become a potent business opportunity. The total project cost for setting up this school is estimated at Rs. covering an approximate area of 1. Before starting education services. In addition to paper course work. Higher return on investment and a steady growth of business is expected with the entrepreneur having some prior experience in the related field of business. gradually increasing to 170 students in year 8.46 million with an IRR of 48% and payback period of 3. The maximum number of enrolments per class is limited to 20 students from Playgroup till KG II and 25 students for class I and II. it is recommended that teacher training program should be imparted. This pre feasibility will encompass essential information regarding various aspects of starting a Montessori school business in Pakistan. KGII has two sections while class I and II will have one section each. BRIEF DESCRIPTION OF PROJECT & PRODUCT Schools with high reputation have a stringent admission selection process. it is suggested that staff employed by the school should be highly educated and properly trained for Montessori education. With the growing population and a limited number of schools.47 million. 7. CRITICAL FACTORS • At a Montessori school level.Pre-Feasibility Study (Montessori School) The project will generate direct employment opportunity for 16 persons. This has given rise to a high demand for Montessori school systems that prepare children for admission to reputable primary schools providing necessary educational training starting at an early age. 2. This pre feasibility encompasses essential information regarding various aspects of starting a Montessori school business in Pakistan. KGI. 6. The overall proposed capacity of the Montessori school is for 170 students. The proposed building for the project will be acquired on rent. for which Montessori schools provide the necessary training. teachers/attendants play a critical role in the success of the learning process.29 years. The project NPV is around Rs. The education curriculum should be well researched and comprehensive. The project is financed through 90% debt and 10% equity. 0. the school will start with 86 students initially in year 1. it is suggested that visual and other teaching tools should also be optimally used. 6 September 2013 • .

INSTALLED & OPERATIONAL CAPACITIES It is proposed that students be admitted for Playgroup to Class II. Year wise capacity utilization details are mentioned in the table below: 7 September 2013 .Pre-Feasibility Study (Montessori School) • Parents are conscious about the well being and safety of their children at schools. Moreover. therefore.5 Kanals to accommodate the proposed student strength. this capacity may not be achieved in the initial years of operations. Classrooms should also be well equipped with teaching as well as extra-curricular activity aids. There are 8 proposed classrooms for the school having a total capacity of 170 students. covering an approximate area of 1. Adequate provisions for physical. The maximum number of enrolments per class is limited to 20 students from Playgroup till KG II and 25 students from Class 1 till Class 2. either indoor or outdoor or both facilities should be made available. The building will be acquired on rent. Prior experience/education in the related field of business can be a big advantage • • • • 8. the classrooms should either be air-conditioned or at least well ventilated. (The school will start with 86 students initially in year 1. gradually increasing to 170 students in year 8). it is suggested that the school environment ensures security and should be free from any apparent hazards. However. The area of the classrooms should be in line with the number of students in each classroom. Higher return on investment and a steady growth of business is closely associated with continuous training and capacity building of the entrepreneur. The school should preferably not be located in a highly populated location or at a location with high traffic hazards. Continuous teacher parent interaction should also be a regular feature of the school education system.

Cash Flow Statement and Balance Sheet are attached as appendix. The projected Income Statement. However. cities like Sargodha. 10. Moreover. Sheikhupura. with the increasing population pressure and increasing concentration of well reputed Montessori schools in metropolitan cities. Gujranwala. Faisalabad. Sialkot. It is recommended that the Montessori school should be located in an easily approachable location in line with the selected target market. the presence of large middle class families in major cantonment cities of the country is another opportunity to be tapped. Karachi & Islamabad. PROJECT COST SUMMARY A detailed financial model has been developed to analyze the commercial viability of Montessori School under the Prime Minister’s Small Business Loan Scheme. Hyderabad and Abbotabad are some of the cities in this category. Gujrat. this capacity may not be achieved in the initial years of operations. The maximum number of enrollments per class is limited to 20 students from Playgroup till KG II and 25 students from Class 1 till Class 2. POTENTIAL TARGET MARKETS/CITIES All major cities in the country are suited for starting a Montessori school. A suitable location will depend upon the target market. Multan. 10.1 Project Economics It is proposed that students be admitted for Playgroup to Class II. Various cost and revenue related assumptions along with results of the analysis are outlined in this section.Pre-Feasibility Study (Montessori School) Table 1 . peripheral and smaller cities also present a very lucrative business opportunity for opening up a well planned Montessori school.Year Wise Number of Students (Maximum Utilization) Students Per Year Year 1 Year 2 Year 3 Year 4 Year 5 Play Group 20 26 28 31 33 KG-I 20 26 28 31 33 KG-II 20 26 28 31 33 Class I 13 16 18 19 21 Class II 13 16 18 19 21 Total 86 110 120 131 141 Class 9. The building will be 8 September 2013 . Rahimyar Khan. Other than Lahore. However. There are 8 proposed classrooms for the school having a total capacity of 170 students.

29 Net Present Value (NPV) 3.Project Economics Description Details Internal Rate of Return (IRR) 48% Payback Period (Yrs) 3. The year wise capacity utilization details are mentioned in the table below: Table 2 .510 Returns on the scheme and its profitability are highly dependent on the entrepreneur having some practical knowledge about advanced educational procedures.Pre-Feasibility Study (Montessori School) acquired on rent. payback period and net present value: Table 3 .5 Kanals to accommodate the proposed student strength. teaching an extensive curriculum and using modern teaching methodology in sync with international standards along with qualified and experienced faculty to be hired. covering an approximate area of 1. 9 September 2013 .460.Year Wise Number of Students (Maximum Utilization) Students Per Year Year 1 Year 2 Year 3 Year 4 Year 5 Play Group 20 26 28 31 33 KG-I 20 26 28 31 33 KG-II 20 26 28 31 33 Class I 13 16 18 19 21 Class II 13 16 18 19 21 Total 86 110 120 131 141 Class The following table shows internal rate of return.

A big hall should be allocated with proper divisions for entertainment room and computer section.3 Project Cost Following requirements have been identified for operations of the proposed business.) Land Building/Infrastructure Furniture & fixtures 932. Table 5 .509 Markup to the Borrower (%age/annum) 8% Tenure of the Loan (Years) 7 10. 10 September 2013 .726.700 Computer & Equipment 490. 1. 1.677 Initial Working Capital 475. Table 4 .168 Bank Loan (90%) Rs.981.2 Project Financing Following table provides details of the equity required and variables related to bank loan.5 kanals of land comprising double story building would be sufficient.000 Total Project Cost 2. 1 room for principal.Project Financing Description Details Total Equity (10%) Rs. The covered area should have 8 classrooms. 220. monkey bars and other playing equipment and tools.500 Pre-operating Cost 49.500 School’s Office Equipment 253.4 Land Requirement For a batch of 170 students. children and administration staff.677 10.Capital Investment for the Project Capital Investment Amount (Rs. The playground should have seesaws. A purpose built building may also be acquired on rent. principal.201. slides. Appropriate numbers of washrooms are suggested for teachers.977 Total Capital Costs 1. An adequate area should be allocated for the playground.Pre-Feasibility Study (Montessori School) 10. 1 for teacher’s coordinator and 1 room for the administration staff.

Covered Area Requirements Space Requirements Required Area (Sq.Pre-Feasibility Study (Montessori School) Table 6 . Suitable Location The suitable location will depend upon the target market. In case a purpose built building is purchased. with the increasing population pressure and increasing concentration of well reputed Montessori schools in metropolitan cities. Sheikhupura. ii.5 Kanal building in the middle or upper middle income group area is estimated at Rs. 3. infrastructure cost will increase. cities like Sargodha. Rahimyar Khan. Moreover.000. Hyderabad and Abbotabad are some of the cities in this category. Other than Lahore. Faisalabad.920 Entertainment Room 376 Admission Office 100 Principal Office 150 Admin Room 100 Computer Class 300 Washrooms. ft) Class Rooms (8 rooms) 1.250 Total Covered Area Requirement 6. However. peripheral and smaller cities also present a very lucrative business opportunity for opening up a well-planned Montessori school.000 and total building rent during year 1 would be approximately Rs. i.200. Gujrat. All major cities in the country are best suited for starting a Montessori school. Building Rent Monthly rent for the proposed 1. Store & Kitchen 554 Grounds aprox. Multan. 100.750 It is recommended that the proposed project should be established in a rented building to reduce initial infrastructure cost. Sialkot. Gujranwala. 11 September 2013 . Karachi & Islamabad. 1. the presence of large middle class families in major cantonment cities of the country is another opportunity to be tapped.

000 750 Total Cost (Rs) 45.500 Exhaust fans 4 2.500 30.000 10 25.000 15.000 14.000 65.700 20.5 Office Equipment Details The details of the different equipment required for the project is given in the following tables: Equipment Computers Computers Lab Networking Cost Printer Scanner Server Fax Machine Telephone Sets UPS – 3.500 2 40.000 Total Cost (Rs) 12.000 15.500 2.000 8.000 250.500 15.000 9.000 Energy Saver 74 200 Water coolers 1 20.500 2.000 35.000 Ceiling fans 26 2.) 3 25.000 7.000 12.500 1 5.000 1 20.700 Description Play Equipment See Saw 4 Feet Slide Table 9 – Playing Equipment Costs Quantity Cost per Unit (Rs) 1 1 12.0 KVA Total Equipment Table 7.000 Total Cost (Rs.000 490.000 Description Refrigerator Microwave Electric Kettle Fire extinguisher Vacuum cleaner Telephone/facsimile Wall clock Total 1 1 1 2 1 1 12 25.000 7.000 12 September 2013 .000 20.000 15.000 12.500 5.Electrical & Other Equipment Costs Quantity Cost per Unit (Rs) Air conditioners (in principal room) 1 45.500 Table 8 .000 1 7.000 7.000 1 12.Pre-Feasibility Study (Montessori School) 10.000 253.) 75.000 4 1.000 1 35.000 6.000 12.Office Equipment Costs Quantity Cost per Unit (Rs.000 80.000 15.000 25.

500 2.500 50.000 17.000 Student Table & Chair for Class 1 & 2 50 4.500 7.000 10.000 Cupboards & Book shelves 8 5.000 Cupboard 1 7.000 Visitors Chairs 3 3.000 Cupboard 1 7.500 2.500 35.000 40.500 7.000 15.000 40.000 15.000 Cupboard 1 7.500 Reception Area Furniture 1 15.000 Chairs 2 2.000 Computer Tables 10 3.000 Total Furniture & Fixture Cost 831.500 225.000 9.500 Class Rooms Round tables for Play Group to KG II 20 3.Furniture Costs Description Quantity Unit Cost Total Cost (Rs) (Rs) Principal Office Table & Chair 1 20.000 20.500 7.000 Chairs for Play Group to KG II 120 1.000 12.6 Furniture 1 1 1 1 1 17.500 180.000 60.500 5. Following furniture will be required at Montessori School: Table 10 .000 101.500 Admin Office Table 1 5.000 15.000 As this business is related to education sector therefore there is exclusive requirement of furniture and fixtures.500 Soft board 1 2.000 10.000 Children Books / Toys / Entertainment 100.000 20.000 20.500 White board 1 2.500 13 September 2013 .Pre-Feasibility Study (Montessori School) 6 Feet Slide 8 Feet Slide Monkey Bars 6x6 Zig Zag Bridge Monkey Jumping Total 10.000 12.000 5.000 Teacher Table & Chair 8 5.000 White Boards 8 2.500 20.000 equipment Computer Lab Computer Chairs 20 2.

parents. Coordinate any special projects to increase coaching awareness among teachers including arranging guest speakers.000 TOTAL 16 2.) (Rs.000 288.000 120.000 Accountant 1 15.Pre-Feasibility Study (Montessori School) 10.000 Computer Teacher 1 15.000 120. Principal The principal should be responsible for coordinating all the activities of the school including the hiring of teachers.532. visits and workshops.000 180.) Principal 1 25. their performance and evaluation.000 Teacher KG-II 2 12.000 180.000 Class II 1 12.000 Salaries of all employees are estimated to increase at 10% annually.000 Class I 1 12.000 180. course design.000 180.Human Resource required for the first year Position Number Salary/month Annual Salary (Rs.000 144.000 Teacher Play Group 2 12. He/she will be responsible for teachers’ attendance. 10. developing liaison with the parents.000 Teachers Coordinator 1 15.000 300.000 Guard 1 10.7 Human Resource Requirement Following human resource is estimated for the Montessori School which will be required during the first year: Table 11 . maintaining and developing the brand name of the school for appropriate positioning.8 Key Personnel i. Teacher’s Coordinator An experienced and trained Montessori school teacher is recommended for this post The Coordinator would be assisting the principal in all school matters. He/she has to collaborate with students.000 Games Teacher 1 15.000 144.000 Student Attendent 1 10.000 288.000 Teacher KG-I 2 12. 14 September 2013 .000 120.000 288.000 Cleaner 1 10. staff and volunteers to ensure that group activities run effectively. ii. Supervise and monitor the tutoring of students. admission tests and extra-curricular activities.

000 2 20 40 KG II 4.300 1.000 960.500 86 645. iv. Student Attendant The students in the elementary institutes are very young and may also need attendants or baby-sitters.000 1 13 25 Class I 4. and other administrative expenditures. A balanced mix of experienced and fresh teachers is recommended for efficient running of the school. salaries.Expected Revenue Generation during Year-I Year .I Number of Total Number of Class Name Fee Per Qty.Revenue Assumptions Students fee growth rate Production capacity utilization during Year 1 7.800 1 13 25 Class II 5.800 86 5. arranging cocurricular activities for the children and their performances in the examinations.267.000 2 20 40 Playgroup 3.9 Revenue Generation Expected revenue generation by the number of students admitted in the school during the first year is given in the table below: Table 12 . vi. Rupees Student Classes Students in each Class Registration Fee 2.000 Admission Fee 7. Teachers Experienced teachers or fresh graduates with a natural aptitude for teaching should be employed.Pre-Feasibility Study (Montessori School) iii.600 170 Net Fee of School Table 13 . Each teacher shall be given a class and held responsible for proper training. v.300 826.800 748.500 86 215. 10.500 840.5% 50% 15 September 2013 . imparting knowledge.032. Accountant The accountant will be responsible for book keeping and maintaining accounts. Computer Teacher The teacher should be responsible for the introduction of information technology to the young students and for proper arrangement of students’ games and basic computer learning.000 2 20 40 KG I 4.

000 Office supplies 30.Pre-Feasibility Study (Montessori School) 10.10 Other Expense Other than salaries.000 Janitorial expense 60.000 Transportation & travelling 24.000 Medical & first aid 30. Office expense 30.000 Misc.000 Plantation expense 30.000 Stationary & printing 90.000 Postage 36. gas.000 Advertisement 60.000 Total 2.000 Computer lab expenses 30.000 Newspaper. following operating expenses are assumed to be incurred during Year 1: Table 14 – Other Operating Expense during Year 1 Other Operating Expenses: Rs. Teacher training expense 36. books & periodicals 30.142 16 September 2013 .000 Rental expense 1.000 School events & programmes 60.200.000 Repair & maintenance 90. telephone 318.elec.000 Utilities .142 Internet & communication expense 30.220.000 Consultancy charges & audit fee 36.

536.839 Year 9 15.597.851.577 38.526 112.720 9.150 33.968 17 September 2013 .176.270.238 350.510.288 38. Office expense Plantation expense Repair & maintenance Janitorial expense Depreciation expense Amortization of pre-operating costs Subtotal Operating Income Gain / (loss) on sale of office equipment Earnings Before Interest & Taxes Interest expense on long term debt (Debt facility : Bank 1) Subtotal Earnings Before Tax Tax NET PROFIT/(LOSS) AFTER TAX Year 1 5.150 33.659 1.746 2.000 90.540 55.324 53.125.465 36.986.729 41.271.800 25.848 93.013 1.500 37.000 1.609 40.950 9.770 84.000 30.324 132.213 50.267. telephone Internet & communication expense Teacher training expense School events & programmes Computer lab expenses Consultancy charges & audit fee Newspaper.858 288.111 Year 10 16.150 734.000 30.465 109.305 132.844 4.288 38.930 36.350 2.647 243.723 196.075 39.028.952 33.946 76.196.906 67.729 34.609 80.410.783 69.075 99.577 243.203 120.729 34.288 114.881.363.488 4.243 32.000 60.136 8.274.572 4.148 601.103.510 15.320 2.742 150.448 34.230 2.288 114.1 Income Statement Income Statement Revenue Faculty Salary Total cost of sales Gross Profit General administration & selling expenses Administration expense Building rental expense Utilities .032 4.000 36.499.612 512.366.396 43.823 5.792 36.174.800 1.938 521.995 4.208.948.923 67.563.186 69.460 66.203 120.000 36.540 139.528.500 31.672.458 34.232 93.697.203 48.396 72.174 138.476 1.052 Year 4 8.129.824.823 5.213 42.305 217.225 39.639 84.663.492 3.830.080 46.133 340.844 3.292.000 31.029 11.933 1.829.458 2.elec.572 350.017 237.590 Year 8 14.203 40.140 4.481.864.620 93.426 243.361.203 48.572 680.297 3.959.461 619.350.848 37.352 5.906 2.372 2.275.690 33.027 2.487 6.753 1.307 681.916.518.871 1.394 Year 5 9.488 4.810 Year 3 7.203 40.823 7.029 4.569 138.288 2.075 39.213 126.465 36.186 41.081.881.729 41.186.696 Year 7 13.280 1.971 53.080 243.823 6.967 44.243 80.720 9.000 60.675 27.930 216.320 4.924.524 1.114 3.995 4.430. gas. books & periodicals Stationary & printing Postage Transportation & travelling Advertisement Office supplies Medical & first aid Misc.225 66.500 37.946 30.155.729 104.213 50.758 36.537 750.410.850.000 349.304.243 40.075 33.569 150.460 4.268 4.684 3.840.075 33.577 38.304 540.510.500 94.320.032 12.406 243.848 46.452.873 563.150 112.583 2.510.536.930 36.270.903 734.460 712.000 216.720.631 76.808.766.200 63.324 44.656 33.000 318.000 384.800 31.800 63.540 46.766 99.200 2.000 36.191.200.950 3.203 40.208.499.742 288.995 3.733.540 139.600 1.500 31.720 9.487 2.253.000 30.105 1.832 3.000 30.915 2.324 53.338.865 45.075 33.162 80.733.353 2.289.697.600 Year 2 6.366.000 216.079 3.500 94.080 46.623 4.163 46.188 35.095 Year 6 11.651.459 88.188 88.510 3.539 3.540 46.647 44.656 42.324 44.756.000 90.000 30.782 2.465 43.781 2.992.000 3.808.191.850.406 40.421.275.892.572.253 1.639 50.572 3.010 2.526 621.000 1.572 4.932.406 40.136 3.000 31.467.000 24.866.352 2.848.488 685.465 109. ANNEXURE 1 11.939 2.675 69.191 2.500 37.Pre-Feasibility Study (Montessori School) 11.690 66.729 104.000 60.500 63.915 42.823 6.172 72.288 45.200 4.465 43.995 4.150 216.213 126.758 72.288 45.213 42.213 42.426 42.336 4.458 34.372 38.916.844 10.995 2.720 9.025 1.460 4.647 44.690 26.105 91.781.158.540 55.957 31.800.717.970 42.623 20.372 2.946 38.672.288 38.238 132.764 1.465 36.528.426 42.656 84.458 216.587 3.782 42.194 1.188 44.651.057.174 1.500 31.920 465.672.631.540 46.536.620 55.200 423.675 34.075 99.758 29.142 30.000 30.609 48.971 88.324 44.720 9.572 15.992.871 91.508 1.933 217.324 132.729 34.200 2.865 76.

621.134.500 98.991 19.027) 1.188.184 6.141.162 1.985.808 - 45.924 (89.995 3.523.038 (759.480 373.234.560) 355.122 9.810) (2.000 475.114.500 1.234 416.729 737.079 19.580 115.099 4.519 235.285) 1.981.750 196.785 481.113 18.509 1.985.482 220.646 25.598) (1.106 576.358 (753.985) (1.969.000 832.083 3.828 9.223.122 220.676.111 5.274 2.250 125.542 139.773 554.550.227 6.396.977 49.742.700 932.503 146.813 975.134.290.227 846.000 294.400 1.168 957.677 39.750 375.985) (2.846 309.582 1.292 18.761.795 15.Pre-Feasibility Study (Montessori School) 11.184 13.051 3.040.521) (1.522.936 19.270 185.610 731.726.590 652.874.808 18 September 2013 .038 115.457) (1.196 139.250 392.859 7.184 4.591 1.465) 682.919 177.503 3.220 559.026.130.797 1.995 9.986 29.177.800.283 4.899 846.116 101.274.746.000 630.969.105.073 95.467 1.010.168 220.341 2.260 177.359 12.823 - 49.563.270 203.543) 1.323.776.727 846.991 2.797 203.2 Balance Sheet Balance Sheet Year 0 Assets Current assets Cash & Bank Accounts receivable Pre-paid building rent Total Current Assets Fixed assets Land Building/Infrastructure Machinery & equipment Furniture & fixtures Office vehicles Office equipment Total Fixed Assets Intangible assets Pre-operation costs Total Intangible Assets TOTAL ASSETS Liabilities & Shareholders' Equity Current liabilities Accounts payable Total Current Liabilities Other liabilities Deferred tax Long term debt (Debt facility : Bank 1) Total Long Term Liabilities Shareholders' equity Paid-up capital Retained earnings Total Equity TOTAL CAPITAL AND LIABILITIES Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 375.576 447.077 1.219.433) (2.073 104.477 6.482 19.459.083.102 14.110 279.260 22.700 228.457) (1.850 466.040.406 487.986 2.592.168 138.867 (70.977 2.740 186.293 76.470 50.213) 985.982 39.000 500.000 100.243.135 (224.010.294 7.168 2.184 21.174 358.184 9.540 152.571 541.038 126.792 (444.105.323.369 214.300 1.936 846.766.276.354.428.621.265.810) (2.899 4.201.236 833.427 168.285 12.016 1.199 264.410 2.563.487 846.858 119.156 5.388.476 16.184 17.372 194.982 2.776.808 253.191.017 11.542 126.577.820 126.826 161.718 110.130.418.081 14.750 2.418.203 243.797.335 2.686.522.100 1.370 93.000 400.872 8.538 220.152 846.799 688.980 202.196 153.509 (34.427 185.645 133.981.677 220.433) 220.100 809.960 746.826.168 2.500 250.929.874.538 29.434.330 839.487 12.223.273 45.492.201.037 121.168 356.444 19.273 95.872.500 490.152 9.170 358.116 153.040.116 168.250 626.200 1.644 10.727 16.580 104.353 629.563.423.

704) 626.273 245.753 216.168 2.000) (100.027 Year 8 3.Pre-Feasibility Study (Montessori School) 11.720 9.000) 1.312 3.956.580 Year 9 3.341 386.823 (407.804.476 216.716) 13.823 (455.768 Year 6 2.647 852.191 243.677) (1.527 3.324 (626.000) 45.851.995 (135.3 Cash Flow Statement Cash Flow Statement Year 0 Operating activities Net profit Add: depreciation expense amortization of pre-operating costs Deferred income tax Accounts receivable Pre-paid building rent Accounts payable Other liabilities Cash provided by operations Financing activities Debt facility : Bank 1 .100) 9.930 19 September 2013 .829) (327.458 1.547.930 (100.995 (219.502.446 Year 10 3.600.312 (327.997) (19.623) (48.000 25.038) - - - (1.726.085) (279.720 9.718) (10.732 Year 4 1.093) (16.507 644.843 3.981.350 243.608) (12.038) (355.795 18.085) (258.764 216.201.150) (21.858) (13.830.504 1.458 243.720 9.310) 10.000) 49.529) (74.933 216.582.016) 1.454) (17.989 3.582.829) (355.953.654 2.720 9.016) (626.509 220.953.897) (72.550 2.543) (119.560) 235.858 46.823 (448.968 243.506) (279.318) (11.920 2.042) (220.487) 15.726.305) (238.720 9.580 3.016 323.252) (58.436) 16.823 (361.677 (220.995 (34.825) (59.446 3.547.196.959.953.506) (302.646 Year 3 601.677) 375.305) (258.principal repayment Additions to Debt facility : Bank 1 Issuance of shares Purchase of (treasury) shares Cash provided by / (used for) financing activities Investing activities Capital expenditure Acquisitions Cash (used for) / provided by investing activities NET CASH Year 1 138.948.323) (14.641) 11.995 (309.929) (48.830 Year 5 1.823 (447.800 284.176.131.467.095) (65.194 243.900 Year 2 217.281.174 216.995 (54.379 Year 7 3.258) (45.064 1.483) (144.105) 12.042) (238.

www.pakistan.nbp.tdap. www.pk Small and Medium Enterprise Development Authority.fpcci.pk Federation of Pakistan Chambers and Commerce and Industries (FPCCI) www.pk All Pakistan Private Schools Welfare Association (APPSWA) www. www.pk Government of Balochistan.pk Government of Azad Jamu Kashmir. www.gov.gilgitbaltistan.gov. www.org.com. www.balochistan.pk Government of Khyber Pakhtoonkhwa.punjab.gov. www.sbp.gov.pk First Women Bank Limited (FWBL). www.ajk.pk Ministry of Education.gov. www. www.pk Trade Development Authority of Pakistan (TDAP).smeda.gov.gov.gov. www.fwbl.khyberpakhtunkhwa.pk Ministry of Industries & Production.appswa.com.com.gov.pk Security Commission of Pakistan (SECP).pk Government of Gilgit Baltistan.pmo.com.pk Government of Pakistan.pk State Bank of Pakistan (SBP). www.moip. www.pk 20 September 2013 . USEFUL LINKS Prime Minister’s Office. www.gov. www.Pre-Feasibility Study (Montessori School) 12. Training & Standards in Higher Education http://www.gov.pk Government of Sindh.secp.org.sindh.pk National Bank of Pakistan (NBP).moptt Government of Punjab.

000 per annum Rs. 36. 60. Expense Growth Rate Table 18 . Entertainment etc.000 per annum Rs.000 per annum Rs.5% 5% 5% Rs.000 per annum 21 September 2013 .Expense Assumptions Office Expense (Stationary.Operating Assumptions Operational Days Per Month Months Operational Table 16 . 30.) Communication Expense Advertisement Expense Teacher’s Training Expense Repair & Maintenance Expense 22 12 50% 85 5% 25 Nos. KEY ASSUMPTIONS Table 15 .2 Students addition in Year – 3 and onwards Table 17 .000 per annum Rs. 10 Nos.Capacity Utilization Assumptions Capacity Utilization (First Year) First Year Student Enrollment Student Drop-out Ratio Students addition in Year . 10% 10% 10% 7. 90.Economic Assumptions Electricity Growth Rate Salary Growth Rate Rent Growth Rate Student Fee Growth Rate Admission Fee Growth Rate Misc.Pre-Feasibility Study (Montessori School) 13. 90.

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