Pre-Feasibility Study

Prime Minister’s Small Business Loan Scheme
Footwear Retail Outlet (Ladies and Children)

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

REGIONAL OFFICE
SINDH

REGIONAL OFFICE
KPK

REGIONAL OFFICE
BALOCHISTAN

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

5TH Floor, Bahria
Complex II, M.T. Khan Road,
Karachi.
Tel: (021) 111-111-456
Fax: (021) 5610572
helpdesk-khi@smeda.org.pk

Ground Floor
State Life Building
The Mall, Peshawar.
Tel: (091) 9213046-47
Fax: (091) 286908
helpdesk-pew@smeda.org.pk

Bungalow No. 15-A
Chaman Housing Scheme
Airport Road, Quetta.
Tel: (081) 831623, 831702
Fax: (081) 831922
helpdesk-qta@smeda.org.pk

September 2013

...................................................................................................... 9  12  CONTACT DETAILS OF EXPERTS & CONSULTANTS ............................................... 9  REVENUE GENERATION.................................................................................................................. 11  13  ANNEXURE ............................................................................................ 4  5  EXECUTIVE SUMMARY ..................................................................................................2  13...........................................................8  11............... 12  CASH FLOW STATEMENT ................... 8  MACHINERY AND EQUIPMENT.................................................................................................................................................................................................1  13......6  11.....1  11........................................................................................... 14  14  USEFUL LINKS ..................................... 5  8  INSTALLED & OPERATIONAL CAPACITIES ................................................................................................3  11.................................3  INCOME STATEMENT ............................ 9  OTHER COSTS .................................................... 5  10  POTENTIAL TARGET MARKETS / CITIES ................................... 5  9  GEOGRAPHICAL POTENTIAL FOR INVESTMENT ...................................................................................................................................................................................................................................................................................................... 16  1 .......................... 5  11  PROJECT COST SUMMARY ............................................................................................. 6  PROJECT FINANCING .............. 3  3  INTRODUCTION TO SMEDA ....................9  11.................. 15  15  OPERATING AND FINANCIAL ASSUMPTIONS ...................................... 7  PROJECT COST .......................................................................................................7  11.............................................................................Pre-Feasibility Study Footwear Retail Outlet (Ladies and Children) Table of Contents 1  DISCLAIMER .............................................................................. 6  11...................... 8  RAW MATERIAL REQUIREMENTS ........................................................ 8  HUMAN RESOURCE REQUIREMENT ....................... 8  OFFICE EQUIPMENT............................................................................................................................................................10  PROJECT ECONOMICS ..................................................................................................................................................................... 4  6  BRIEF DESCRITION OF PROJECT & PRODUCT ...........................................................................................................................................................................................................4  11..................5  11....... 3  4  INTRODUCTION TO SCHEME ................................................................................ 7  SPACE REQUIREMENT ................................................................................. 12  13.................................................................................................................................. 2  2  PURPOSE OF THE DOCUMENT ...2  11........................................................................................ 13  BALANCE SHEET ...... 4  7  CRITICAL FACTORS .......................................................................

Although. due care and diligence has been taken to compile this document. the material included in this document is based on data/information gathered from various reliable sources. 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.pk 2 .Pre-Feasibility Study Footwear Retail Outlet (Ladies and Children) 1 DISCLAIMER This information memorandum is to introduce the subject matter and provide a general idea and information on the said matter. however. and the actual results may differ substantially from the presented information. please contact our website: www. The contained information does not preclude any further professional advice.smeda. 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. the contained information may vary due to any change in any of the concerned factors.org. Although. SMEDA. it is based upon certain assumptions which may differ from case to case. 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.

finance and business management. business development services. 3 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). a broad spectrum of business development services is also offered to the SMEs by SMEDA. Apart from carefully studying the whole document one must consider critical aspects provided later on. Concurrent to the prefeasibility studies. SMEDA has carried out ‘sectoral research’ to identify policy. the document/study covers various aspects of project concept development. marketing. Preparation and dissemination of prefeasibility studies in key areas of investment has been a successful hallmark of SME facilitation by SMEDA. The project pre-feasibility may form the basis of an important investment decision and in order to serve this objective. The purpose of this document is to facilitate potential investors in Footwear Retail Outlet by providing them with a general understanding of the business with the intention of supporting potential investors in crucial investment decisions. strategic initiatives and institutional collaboration and networking initiatives. best practices developed by existing enterprises by trial and error. by helping increase the number. 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.Pre-Feasibility Study Footwear Retail Outlet (Ladies and Children) 2 PURPOSE OF THE DOCUMENT The objective of the pre-feasibility study is primarily to facilitate potential entrepreneurs in project identification for investment. access to finance. 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. With a mission "to assist in employment generation and value addition to the national income. scale and competitiveness of SMEs" . through development of the SME sector. and certain industrial norms that become a guiding source regarding various aspects of business set-up and it’s successful management. which form basis of any Investment Decision. 3 . start-up. and production.

The outlet is proposed to cater the demand of ladies’ and children’s footwear. 2. Sindh. It involves purchase of ladies’ and children’s shoes from any local manufacturer and selling it through retail outlet opened in rented premises.Pre-Feasibility Study Footwear Retail Outlet (Ladies and Children) 4 INTRODUCTION TO SCHEME Prime Minister’s ‘Small Business Loans Scheme’. with an allocated budget of Rs. (FWBL). and sell 16. The demand for footwear is constantly rising and there are a number of local manufacturers producing quality footwear. The retail outlet will have covered area 900 sqft. quality footwear at affordable prices. The consumers are becoming increasingly quality conscious and seek products offering value for money. This trend has led to strong growth in retail footwear outlets around Pakistan. Shoes of requisite qualities and 4 . semi-formal and formal. The legal business status of this project is proposed as ‘Sole Proprietorship 6 BRIEF DESCRITION OF PROJECT & PRODUCT This document provides information for setting up a Footwear Retail Outlet selling ladies’ and children’s shoes. with an IRR of 49% and payback period of 2. The shoes are assumed to be purchased from different subcontract manufacturers and sold at the retail outlet. and a debt : equity of 90 : 10 will be disbursed to SME beneficiaries across Pakistan. The outlet will remain operational for 12 hours per day. under a brand name in any of the urban centres of Pakistan.83 years. Small business loans with tenure upto 7 years. This business will provide employment opportunity to 7 individuals including the owner manager.23 million as working capital.0 Billion for the year 2013-14. belonging to middle to upper middle income groups. Balochistan. The total project cost for setting up footwear retail outlet is estimated at Rs. is designed to provide subsidised financing at 8% mark-up per annum for one hundred thousand (100. for young entrepreneurs.79 million. Azad Jammu & Kashmir and Federally Administered Tribal Areas (FATA).000) beneficiaries. The project is proposed to be financed through 90% debt and 10% equity. The focus of the business would be to provide casual. covering. The project NPV is calculated to be around Rs 4.000 pairs of shoes in first year. 0. 5 EXECUTIVE SUMMARY This SME venture entails setting up Footwear Retail outlet in urban centres of Pakistan.16 million out of which Rs. Gilgit Baltistan.93 million is capital cost and Rs. initially through National Bank of Pakistan (NBP) and First Women Bank Ltd. 5. Punjab. 1. Khyber Pakhtunkhwah. through designated financial institutions.

 Selection of a central location keeping in mind the target market. Hyderabad. The three categories among ladies' and children's shoes are further classified by three different proposed selling prices.  Very frequent changes in designs in shoe brands in the market.  Develop strong linkages with suppliers for sourcing quality product at competitive prices. Experience and efficient sales staff also plays a critical role in determining the sales revenue of the business.700 – Rs. The business is expected to have capacity to sell 24. busy markets or similar high traffic areas would be preferable location options.050 for ladies’ shoes and Rs. The proposed project assumes to sell around 16.  Remain updated of the market trends including latest fashions and designs.000 pairs in the first year of operation at 70% capacity. Most of the shoe 5 . 1. Faisalabad.000 shoes in one year. made of leather and other materials. These turnover estimates are based on expert opinion and market sources. 7 CRITICAL FACTORS Following are the factors critical for the success of the footwear retail business.  Strong competition with several shops opened in same commercial area. The product mix would include ladies' and children's shoes in all the sizes.Pre-Feasibility Study Footwear Retail Outlet (Ladies and Children) quantities will be sourced from the wholesale market and small shoe manufactures. ranging between Rs. slippers etc. 8 INSTALLED & OPERATIONAL CAPACITIES Since the proposed venture is a trading business. 350 – Rs. coat shoes. therefore shopping malls. 630 for children’s shoes. heels. Sahiwal. semi-formal and formal footwear which include pumps. The turnover will depend on the seasonal sales and ability of the venture to attract customers through quality and price incentives. followed by Karachi. 9 GEOGRAPHICAL POTENTIAL FOR INVESTMENT It is important to choose a location where customers have an easy access to the shoe store. This product mix is divided into further categories: casual. The outlet will operate for 12 hours daily. sandals. Gujranwala and Rawalpindi. 10 POTENTIAL TARGET MARKETS / CITIES Lahore is the footwear centre of the country.  Induction of trained sales personnel for efficient customer handling. Peshawar.  Efficient management of stock to keep inventory cost at the minimum. there are no installed capacities per se.

Various cost and revenue related assumptions along with results of the analysis are outlined in this section. any of the above cities would be a profitable option for setting up a footwear retail outlet.019 Returns on the scheme and its profitability are highly dependent on the efficiency of the entrepreneur in selecting appropriate business location.1 Project Economics A target sale of 16. 11 PROJECT COST SUMMARY A detailed financial model has been developed to analyze the commercial viability of Footwear Retail Outlet under the Prime Minister’s Small Business Loan Scheme. hiring trained sales persons and maintaining quality in terms of shoe designs and customer services. The projected Income Statement. 4.000 shoes pairs would be achieved by footwear retail outlet in first year.Pre-Feasibility Study Footwear Retail Outlet (Ladies and Children) manufacturing units and numerous shoe stores are established in these cities.797. Table 1: Project Economics Description Internal Rate of Return (IRR) Payback Period (yrs) Net Present Value (NPV) Details 49% 2. Therefore. Cash Flow Statement and Balance Sheet are attached as appendix 11. 6 . The following table shows internal rates of return and payback period.83 Rs.

216.557 8% 7 11.1.000 300.165.2 Project Financing Following table provides details of the equity required and variables related to bank loan: Table 2: Project Financing Description Total Equity (10%) Bank Loan (90%.948.3 Project Cost Following requirements have been identified for operations of the proposed business.725 103. printer and air conditioner is necessary for routine business operations and giving a professional outlook to attract customers and achieve customer satisfaction.241 546.000 1. The furniture and fixture is required for display of shoes and storing of stock and while the office equipment including computers.230.Pre-Feasibility Study Footwear Retail Outlet (Ladies and Children) 11.) Markup to the Borrower (%age/annum) Tenure of the Loan (Years) Details Rs.840 378.064 7 .506 Rs.983 Rs. Table 3: Capital Investment for the Project Capital Investment Furniture & fixtures Office equipment Pre-operating costs Total Capital Costs Working Capital Repair material inventory Opening inventory Upfront building rent Cash Total Working Capital Total Investment Rs. 809.758 934.081 2. 5.500 21.

5 Machinery and Equipment This particular project does not entail machinery and equipment for production.000 1.500 10.000 7. Table 5: Office Equipment Costs Description Quantity Cost Computers 1 20. 11.7 Raw Material Requirements The shoe will be purchased from the manufacturers and wholesalers and the purchase price per unit is depicted in the table below.500 Rental Vehicle will be used as a mode of transportation of goods.000 103.000 Telephones 2 1. Table 4: Space Requirement Space Requirement (in ft.6 Office Equipment The computer and printer are required for routine office operation and record maintenance similarly barcode reader and inventory management software is necessary for keeping track of inventory and ease of reference of customer and owner both.4 Space Requirement The area has been calculated on the basis of space requirement for display area. Hence no vehicle is proposed for this project.000 Inventory Management/Acc 1 20.Pre-Feasibility Study Footwear Retail Outlet (Ladies and Children) 11.000 Bar code reader 1 15.) Rs/Sqft Shop 70 Sqft 900 Amount (Rs. management space and washroom.000 Total Office Equipment Amount 20. store.500 Computer printer (s) 1 10.000 UPS 1 7.000 software Security camera 1 30.000 30.000 20.000 11.000 15.) 63. Following table shows calculations for project space requirement. 8 . 11.

000 10.610 966 630 490 350 405.000 10.900 338.000 The table above provides details of human resource required in 1st year to run this project.800 5.704.Children shoe Pair A Pair B Pair C Price (Rs) 750 625 500 20% 50% 30% 450 350 250 11.440 3.10 Other Costs Following table shows other cost such as Furniture. No. 11.8 Human Resource Requirement Table 7: Human Resource Requirement Description No. interior designing and electrical equipments etc.000 2.577.050 875 700 2.9 Revenue Generation Table 8: Revenue Generation Product Ladies Shoes Pair A Pair B Pair C Children Shoes Pair A Pair B Pair C Total Unit Qty Sales Price (Rs. 644 1. No./Unit) First Year Sales Revenue (Rs) No.704. of Employees Store manager 1 Salesmen 4 Helper 2 Total Staff 7 Salary per month 17. 2.320 11. No.Pre-Feasibility Study Footwear Retail Outlet (Ladies and Children) Table 6: Cost of Material Purchase price per unit year 1 .Ladies shoes Qty %age Pair A 20% Pair B 50% Pair C 30% Purchase price per unit in year 1 .575 6.864 1. 9 .635.720 788.100 12.800 No. No. Salaries of all employees are estimated to increase at 10% annually.

725 .800 70.000 7.000 60.000 1 13.000 60.000 1. mirrors etc) Interior Designing Shoe Racks with glass material False ceiling.300 809.Pre-Feasibility Study Description Footwear Retail Outlet (Ladies and Children) Table 9: Other Costs Quantity / Cost / Rate Area Furniture Executive Chairs Counter Seating for customers Floor equipment (baskets.000 30.000 13.200 280 300 4 1.300 84.000 12.000 1 60.000 7.000 75.000 4 1.225 225. front door & paint Flooring 900 sq ft @ 167 Electrical equipment Air conditioners (2 ton split) Generator (5 KVA) Electric wiring & lighting Bracket fans Shoe Store Shoe Racks with iron & Wood Lighting & Wiring Wooden Stools Admin Office Desks and Chairs Total Furniture & Fixtures 10 Amount / Other 1 1 8 1 7.000 10.000 1 70.000 20.000 4.000 315 450 450 515 500 167 162.000 20.500 10.

Pre-Feasibility Study Footwear Retail Outlet (Ladies and Children) 12 CONTACT DETAILS OF EXPERTS & CONSULTANTS Principal Govt. Lahore Tel: +92 42 99210599.T.Shahrah-E-Qaid-E-Azam. Peshawar 091 – 9217244 Principal Principal Pakistan School of Fashion Design 51-J/3. Gujranwala Phone.O Anwar Industry G. Institute of Leather Technology. 99210601 11 .Road. Lahore TEL: +92 42 3531 5401 – 08 National College of Arts 4. Hayatabad. Johar Town. Gujranwala P. 055 – 9230056 Principal Footwear Training Institute Plot # 24. Phase 5.

709 2.428.279 245.627.885 341.905 4.278 91.504 1. janitorial services.323 2.786.390.Pre-Feasibility Study Footwear Retail Outlet 13 ANNEXURE 13.565.000 91.276 315.753.034.201.855.081.504 23.161 2.171.627.421 419.511.553 6.646.709 4.623 241.595 583.) Promotional expense Depreciation expense Amortization of pre-operating costs Subtotal Operating Income 12 September 2013 .776 195.539 4.217 91.105.471 324.297.323 1.262 4.865 12.159.120 15.553.825.539 245.825.323 4.) Office expenses (stationary.602.457 3.674 202.101 84.424.723 27.124 1.726 286.450 91.886 47.320 Year 2 15.352 1.133 4.985 2.303.256.389 2.520 7.217 63.180.539 1.958.321.418 5.957 4.235.675 1.566 198.773 438.183 19.905 4.942 91.460 43.360 147.998.256.657 543.177 563.576 Year 4 21.547 1.577.504 General administration & selling expenses Administration expense Sales commission Building rental expense Communications expense (phone.463 260.352 1.384 681.414 1. internet.582 218.239 236.101.169 99.411.225 706.100 154.093 854.942.322 Balance brought forward Total profit available for appropriation Balance carried forward 341.297.490 2.255 Cost of sales Cost of purchasing shoes Direct labor Fixing and repair material Direct Electricity Transport rental expense Generator expense Total cost of sales Gross Profit 9.374.163 215. entertainment.025 181.696 234.320 126.414 138.108 3.438 184.795.044.447.1 Income Statement Income Statement Revenue Year 1 12.422.838 12.539 777.218 29.709.885 155.262 390.086 178.753.708 29.014 381.616.811.422 749.553 9.479 642.530.704 2.131.471 3.508 1.394 497.188.662 1.074 246.462 229.850 1.686 347.791 91.235.352 1.897 265.662 341.210 161.647 5.622.855 17.052 15.499 356.706 47.904 378.784 167.776 35.377.400 180.816.538 70.084.323 1.489.575 634.154 39.466 Year 5 24.092 77.120 15.091 253.963.883.627.040.916 26.400 790.407 270. mail. etc.911 Year 8 34.106 27.302 Year 9 38.594 1.718.429 31.323 4.394.983 1.339.978 32.998.972 34.280.422.795.715 3.440 211.133 428.150 11.552 1.418 5.825.271.600 39.429 Interest expense on long term debt (Project Loan) Subtotal Earnings Before Tax 155.323 2.183 19.735 204.524 512.133 4.323 4.183 23.001 3.675 2.753.802.538.034 320.477 52.802.393 3.390.063 1.866 1.306 5.602.467 Year 7 31.447.235.039 951.257.499 3.285 771.389.731 91.232 Year 10 41.000 91.600 22.924 57.969 346.245.862 462.169 42.801 4.263 24.821 2.802.214 22.715.283 3.905 6.125 119.838 9.323 4.517.379 1.661.332.712.016 530.723 3.418 470.790 315.222.048. etc.574 4.662 120.634.323 2.118 15.547 223.256.228 946.662 341.911 1.617 223.870 2.662 138.941 11.662 2.075.145.000 377.047 152.323 4.754 1.039.913.701 77.647.821 739.602.161 77.822 324.753.113 1.158 99.536.838 9.429 Earnings Before Interest & Taxes 497.414 1.794 Year 3 18.295 441.517.685 25.472.811.379.169 2.792.704 269.553 6.957 208.987 23.566 276.057.000 36.386 189.514.802 940.686. fax.442 20.622 858.354 3.352 1.211.505 1.239 91.797.560 24.107 3.014 7.041.429 Tax NET PROFIT/(LOSS) AFTER TAX 341.841.270 15.675 1.259.894 619.013 245.546 1.151.736 1.120 19.074.546 119.358 1.000 125.352 1.883.405 12.611 3.709 2.270 12.753.310 53.253 5.707 27.422.373 91.450.400 720.332.074 279.961 20.339.297.870 295.390.136.456 867.648 678.919 Year 6 28.314.971 1.948 297.248 482.517.811.595 6.431 1.270 12.754 28.196 543.809 286.000 20.744 138.145.393 53.174.044.857 17.

688 566.540) (1.718) (254.367.580) 152.727 7.2 Cash Flow Statement Cash Flow Statement Year 0 Operating activities Net profit Add: depreciation expense amortization of pre-operating costs Deferred income tax Closing stock Equipment inventory Opening inventory Pre-paid building rent Accounts payable Cash provided by operations Financing activities Project Loan .918 1.307) (2.748.379) (235.322 91.965) 193.565.998) (3.028.081 2.028.041 Year 10 3.453 1.222.688 566.816.645 5.930 6.323 (809.918 2.682.389.323 (760.891) (189.016) (1.645 7.627 3.277) (228.756 1.998) (41.889 3.918 1.064 (934.142.149 9.662 91.352 (570.323 (687.142.718) (275.341.875) (37.487 2.092) (66.431 91.444) (60.225) (55.149 9.663) (95.352 (372.050.688 566.714.000 300.472 1.072) (2.000) (930.800) 837.185.422) (73.000 566.583.889 3.367.715.175.142.304 1.028.684) (3.869 2.573 1.121.541) (346.390 2.167) (2.464 900.541) (106.323 4.712 891.323 4.029) (129.877) 256.189 12.850) (235.698.081) 1.026 2.189 18.499 1.189 12.323 4.983) (934.738 1.845) (115.013 91.748.323 (841.648 91.567 2.738) 175.645 5.081.084.312) (81.050.453 1.460 18.542) (101.390 2.323 4.034 91.323 (712.438) 27.850 91.840) (378.727 7.688 461.352 (555.241) (546.460 13 September 2013 Year 4 .948.918 1.775.682.962 697.484.050.196 91.453 1.149 12.271 - - - - - - - - - 266.352 (140.566.881) (88.983) 300.095) (275.484.643) (364.011 485.583.622 (218.028.271 300.482.050.095) (297.367.768.189 12.000 Year 1 Year 2 Year 3 Year 5 Year 6 Year 7 341.063 91.174.142.682.768.325) (2.409) (45.662) 214.541) - - - - - - - Year 8 3.041 6.871) (346.602 2.942.460 18.349) (59.453 1.850) (254.508) (129.547) (117.Pre-Feasibility Study Footwear Retail Outlet 13.932) (1.028) 236.567) (156.698.082) (480.688 1.067 1.727 9.748.615 1.147 2.484.390 3.390 2.343) 230.919.154) (315.352 (424.598.000 300.889 3.341.325 909.727 7.000 300.398) (236.422 Year 9 3.323 4.379) (218.506 2.731) (273.682.149 9.762) (131.557 216.768.367.583.165.484.182 1.566.096) (50.765 654.645 5.768.889 5.103) (320.285 91.738) (274.871) (320.103) (297.312) 201.249 1.principal repayment Additions to Project Loan Issuance of shares Cash provided by / (used for) financing activities Investing activities Capital expenditure Acquisitions Cash (used for) / provided by investing activities NET CASH Cash balance brought forward Cash available for appropriation Dividend Cash balance Cash carried forward (5.422 2.583.

948.221 1.028.165.682.352 5.557 216.495.299 1.442 608.613 323.400 810.071.666) (4.372 2.712 891.504 2.557 1.753 93.619 1.998 216.714.124) (3.758 2.213) (5.287) (2.506 341.258 485.750 456.239.450 639.847.006.332 17.213) (5.768.064 17.225 728.019.844.780 82.940 Assets Current assets Cash & Bank Closing stock Equipment spare part inventory Opening inventory Pre-paid building rent Total Current Assets Fixed assets Furniture & fixtures Office equipment Total Fixed Assets Intangible assets Pre-operation costs Legal.047.158.390 729.846.802.727 1.145.703 4.290 242.261.853.890 41.689 17.082) 1.940 837.548 1.525.973 989.506 19.173.276 216.734.029.406 17.350.189 1.645 80.506 1.147 2.825.800 2.366.041.460 1.055 3.304 16.597.121 503.854) 964.597.611.169 2.586.602.611.500.011 837.059 216.052 216.070.011 989.483 1.918 628.688 480.813 216.063.042 27.717 20. licensing.645 976.973 1.763.346 2.055 13.682.028.173.206 1.500 913.859 2.730.993 7.050 273.945 20.299 (1.583.835 62.350 91.792.220.548 1.758 21.299 1.158.240 2.286 1.621 7.515 (528.461) 346.425.418 1.286 1.178 1.279.241) (5.506 6.345 9.273.052 8.549.800 730.717 216.498.852 2.3 Balance Sheet Balance Sheet Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 300.050.940 809.699) 667.429.283 11.150 821.818.700 182.296.412 5.973 10.016 6.918 31.059 9.100 547.541 (2.889 845.813 4.283 216.586.886 669.610 302.096 (512.748.492.506 4.489 10.366.394 18.030 9.400 365.170 2.178.240 2.712 457.838 9.323 21.422.627.241 546.498.276 13.506 2.149 1.709 3.494.639.626 14.430) 1.346 2.811.118 3.216 4.220.666) (5.332 216.183 19.034.279.967 1.553 7.241) 216.217 553.358 23.650 8.193 17.985.380 2.748 676.270 12.360 20.406 2.675 1.000 1.277 13.808 72.998 14.034.120 16.390.776.814 12.905 4.453 539.506 9.000 5.081 566.715 415.621 216.350 2.430 5.725 103.875.480 20.165.606.029.372 2.557 8.034.935 404.121 15.506 15.328 981.853.064 14 September 2013 - .840 378.979.920) (3.761.130.875.867.315 833.504 23.165.662 558.070.170 (140.484.352 4.047.898 (937.859 1.142.687 12.863 51.968 161.165.506 23.506 216.703 8. & training costs Total Intangible Assets TOTAL ASSETS Liabilities & Shareholders' Equity Current liabilities Accounts payable Total Current Liabilities Other liabilities Deferred tax Long term debt (Project Loan) Long term debt (Working Capital Loan) Total Long Term Liabilities Shareholders' equity Paid-up capital Retained earnings Total Equity TOTAL CAPITAL AND LIABILITIES - 1.396.580 566.367.230.985.339) (2.251.903 647.506 2.Pre-Feasibility Study Footwear Retail Outlet 13.011 20.261.978 736.773 6.412 (1.173.273.446 5.506 12.060 7.615 11.334 3.500.517.948.023.682.495.776 11.124) (4.311) 1.590.182 3.332.

gov.pk Government of Sindh.gov. www. www. www.gov.pakistan.nbp.Pre-Feasibility Study Footwear Retail Outlet 14 USEFUL LINKS Prime Minister’s Office. www.pk Government of Azad Jamu Kashmir.pk Federation of Pakistan Chambers of Commerce and Industry (FPCCI) www.org.fpcci. www.pk Ministry of Education. Training & Standards in Higher Education.tdap.balochistan. www. www.gov.pk Small and Medium Enterprise Development Authority. www.pk Government of Gilgit Baltistan. http://moptt.com.moip.pk Trade Development Authority of Pakistan (TDAP).pk National Bank of Pakistan (NBP).pk First Women Bank Limited (FWBL). www.gov. www.gov.com.punjab.gov.pk Government of Khyber Pakhtunkhwa.gov.pk Government of Punjab.pk Security Commission of Pakistan (SECP).pk Government of Balochistan.pk State Bank of Pakistan (SBP).gov.sindh.org. www.smeda.gilgitbaltistan.fwbl.pk Government of Pakistan.secp.sbp.gov. www.khyberpakhtunkhwa. www.ajk. www. www.pmo.gov.pk Ministry of Industries & Production.pk 15 September 2013 .gov.com.

Pre-Feasibility Study Footwear Retail Outlet 15 OPERATING AND FINANCIAL ASSUMPTIONS Table 10: Capacity Utilization Assumptions Starting Capacity Utilization Annual Growth Rate Maximum Capacity Utilization for the project 45% 5% 90% Table 11: Economy-Related Assumptions Electricity price growth rate Wage growth rate 10% 10% Table 12: Cash Flow Assumptions Accounts Receivable cycle (in days) Accounts payable cycle (in days) Raw material inventory (in days) Cash Sales 60 15 Table 13: Financial Assumptions Project life (Years) Debt Equity Interest rate on long-term debt Debt tenure (Years) 10 90% 10% 8% 7 Table 14: Depreciation Rate Assumptions Office Equipment Furniture & Fixtures 33% 10% Table 15: Revenue Related Assumptions Sale price growth rate Purchase price growth rate Percentage of Ladies shoes Percentage of children shoes 10% 10% 80% 20% 16 September 2013 .

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