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Pre-Feasibility Study

HIGH SCHOOL

Small and Medium Enterprises Development Authority


Government of Pakistan
www.smeda.org.pk
HTU UTH

HEAD OFFICE
6th Floor LDA Plaza, Egerton Road, Lahore 54000, Pakistan
P P

Tel: (042) 111-111-456, Fax: (042) 6304926-7


helpdesk@smeda.org.pk
HTU UTH

REGIONAL OFFICE REGIONAL OFFICE REGIONAL OFFICE REGIONAL OFFICE


PUNJAB SINDH NWFP BALOCHISTAN

5TH Floor, Bahria


P P Ground Floor Bungalow No. 15-A
8th Floor, LDA Plaza,
P P
Complex II, M.T. Khan Road, State Life Building Chaman Housing Scheme
Egerton Road, Lahore. Karachi. The Mall, Peshawar. Airport Road, Quetta.
Tel: (042) 111-111-456 Tel: (021) 111-111-456 Tel: (091) 9213046-47 Tel: (081) 831623, 831702
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June 2010
Pre-Feasibility Study High School

DISCLAIMER

The purpose and scope of this information memorandum is to introduce the subject
matter and provide a general idea and information on the said area. All the material
included in this document is based on data/information gathered from various
sources and is based on certain assumptions. Although, due care and diligence has
been taken to compile this document, the contained information may vary due to any
change in any of the concerned factors, and the actual results may differ substantially
from the presented information. SMEDA does not assume any liability for any
financial or other loss resulting from this memorandum in consequence of
undertaking this activity. The prospective user of this memorandum is encouraged to
carry out additional diligence and gather any information he/she feels necessary for
making an informed decision.

For more information on services offered by SMEDA, please contact our website:
www.smeda.org.pk
HTU UTH

DOCUMENT CONTROL
Document No. PREF-50
Revision 3
Prepared by SMEDA-Punjab
Issue Date August, 2002
Revised on June, 2010
Issued by Library Officer

PREF-50/June, 2010/Rev 3
Pre-Feasibility Study High School

1
TU UT EXECUTIVE SUMMARY ................................................................................ 4
TU UT

2
TU UT INTRODUCTION TO SMEDA ........................................................................ 5
TU UT

3
TU UT PURPOSE OF THE DOCUMENT ................................................................... 5
TU UT

4
TU UT CRUCIAL FACTORS & STEPS IN DECISION MAKING ......................... 6
TU UT

4-1
TU UT SWOT ANALYSIS ............................................................................................ 6
TU UT

5
TU UT PROJECT PROFILE ......................................................................................... 7
TU UT

5-1
TU UT OPPORTUNITY RATIONALE .............................................................................. 7
TU UT

5-2
TU UT PROJECT BRIEF................................................................................................ 9
TU UT

5-3
TU UT PROJECT COST .............................................................................................. 10
TU UT

5-4
TU UT PROJECT RETURNS ........................................................................................ 10
TU UT

5-5
TU UT VIABLE SIZE.................................................................................................. 10
TU UT

5-6
TU UT PROPOSED CAPACITY AND PRODUCT MIX..................................................... 10
TU UT

5-7
TU UT PROPOSED BUSINESS LEGAL STATUS ............................................................ 11
TU UT

6
TU UT INDUSTRY ANALYSIS .................................................................................. 11
TU UT

7
TU UT MARKET ANALYSIS ..................................................................................... 14
TU UT

8
TU UT KEY SUCCESS FACTORS ............................................................................. 14
TU UT

9
TU UT REGULATIONS ............................................................................................... 15
TU UT

10
TU UT HUMAN RESOURCE .................................................................................. 16
TU UT

11
TU UT EQUIPMENT/FURNITURE REQUIREMENT ........................................ 16
TU UT

12
TU UT INFRASTRUCTURE .................................................................................... 19
TU UT

13
TU UT FINANCIAL ANALYSIS ............................................................................. 21
TU UT

13-1
TU UT PROJECT DETAIL ........................................................................................ 21
TU UT

13-2
TU UT PROJECTED INCOME STATEMENT ............................................................... 22
TU UT

13-3
TU UT PROJECTED BALANCE SHEET ..................................................................... 23
TU UT

13-4
TU UT PROJECTED CASH FLOW STATEMENT ........................................................ 24
TU UT

13-5
TU UT FEE INCOME ............................................................................................... 25
TU UT

PREF-50/June, 2010/Rev 3
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13-6
TU UT ESTIMATED EXPENSES ............................................................................... 27
TU UT

13-7
TU UT SUBJECT DETAIL ........................................................................................ 29
TU UT

14
TU UT KEY ASSUMPTIONS................................................................................... 30
TU UT

14-1
TU UT FINANCIAL ASSUMPTIONS.......................................................................... 30
TU UT

14-2
TU UT MISCELLANEOUS ASSUMPTIONS ................................................................ 30
TU UT

15
TU UT ANNEXURE .................................................................................................. 31
TU UT

1)
TU UT School Furniture Suppliers and Markets .................................................. 31
TU UT

2)
TU UT IT Equipment Markets .............................................................................. 31
TU UT

3)
TU UT Electrical Equipment and Appliances Suppliers and Markets ................. 31
TU UT

4)
TU UT Educational Experts/Consultants ............................................................. 32
TU UT

5)
TU UT Tax deduction income slabs ...................................................................... 33
TU UT

PREF-50/June, 2010/Rev 3
Pre-Feasibility Study High School

1 EXECUTIVE SUMMARY
This SME venture entails establishing a high school in Lahore, the second largest
city of Pakistan. The school will be catering to children of middle to low income
economic stratum, recognizing the need for a high caliber yet low-cost institute.
Being cognisant of the financial constraints of most parents, the school will charge
an affordable fee. The school will practice advanced educational procedures – using
modern teaching methodology, covering an extensive curriculum which is up-to-date
with international standards, and hiring qualified and experienced faculty. The
school will have state-of-art infrastructural facilities including spacious classrooms,
well-equipped science and computer laboratories, and a resourceful library.

Evident from the performance of education sector in Pakistan, quality education is a


luxury only the rich can afford. Despite the efforts made by the government, most
public schools are failing due to shortage of qualified or committed teachers, limited
curriculum and out-dated teaching methods. With inadequate financial resources of
the government, private sector investment is the only hope left for the revival of the
education sector. Primary to high school level education is most crucial for initial
development of a child and his future as a professional. Admission to the best
colleges and universities is mostly dependant on the quality of education a student
receives till his matriculation. Keeping this in mind, establishing high schools will be
the most beneficial decision an entrepreneur can take to help rebuild this sector.

The total project cost for setting up this school is estimated at Rs. 6.367 million. The
project is financed through 50% debt and 50% equity. The project NPV is around
Rs. 14.736 million, with an IRR of 65% and payback period of 2.38 years. The legal
business status of this project is proposed as ‘Sole Proprietorship’.

The overall proposed capacity of the school is 735 students. Each class level from
Nursery – Matriculation has two sections. The maximum number of enrollments per
class is limited to 30 students, to keep a manageable student-teacher ratio and to
allow maximum attention for each student. The proposed building will be acquired
on rent, covering an area of 3-Kanals to accommodate the proposed student strength.

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2 INTRODUCTION TO SMEDA
The Small and Medium Enterprises Development Authority (SMEDA) was
established with the objective to provide fresh impetus to the economy through the
launch of an aggressive SME support program.

Since its inception in October 1998, SMEDA had adopted a sectoral SME
development approach. A few priority sectors were selected on the criterion of SME
presence. In depth research was conducted and comprehensive development plans
were formulated after identification of impediments and retardants. The all-
encompassing sectoral development strategy involved recommending changes in the
regulatory environment by taking into consideration other important aspects
including finance, marketing, technology and human resource development.
SMEDA has so far successfully formulated strategies for industries such as
horticulture, including export of fruits and vegetables, marble and granite, gems and
jewelry, marine fisheries, leather and footwear, textiles, surgical instruments,
transport, dairy etc. Whereas the task of SME development at a broader scale still
requires more coverage and enhanced reach in terms of SMEDA’s areas of
operation.
Along with the sectoral focus a broad spectrum of business development services is
also offered to the SMEs by SMEDA. These services include identification of viable
business opportunities for potential SME investors. In order to facilitate these
investors, SMEDA provides business guidance through its help desk services as well
as development of project specific documents. These documents consist of
information required to make well-researched investment decisions. Pre-feasibility
studies and business plan development are some of the services provided to enhance
the capacity of individual SMEs to exploit viable business opportunities in a better
way.

This document is in the continuation of this effort to enable potential investors to


make well-informed investment decisions.

3 PURPOSE OF THE DOCUMENT


This particular pre-feasibility comes under the ‘Education’ sector, a sub-sector of the
‘Service’ division and is in regard to setting up a “High School” in any big city of
Pakistan.
The objective of this pre-feasibility study is primarily to provide an overview of the
high school business. This project pre-feasibility may form the basis of an important
investment decision and in order to serve this objective, the document covers various
aspects of the business concept development, start-up, marketing, finance and
business management.

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4 CRUCIAL FACTORS & STEPS IN DECISION MAKING

4-1 SWOT analysis


Strengths
ƒ Low student-teacher ratio
ƒ Recognized by the BISE
ƒ English as a medium of instruction
ƒ Affordable to middle income group
ƒ Accessible location
ƒ Well-trained and qualified teaching staff
ƒ Up-to-date and extensive curriculum
ƒ Well maintained order and discipline
ƒ Environment conducive to joyful learning
ƒ Adequate security measures
ƒ Availability of adequate and modern facilities
ƒ Contribution to societal development
Weakness
ƒ
Time required for gaining recognition in the society
ƒ
Higher rental cost for accessible locations
ƒ
Insufficient area for playing fields to practice sports such as cricket, hockey
etc.
Opportunities
ƒ
Overall increase in demand, linked with the growing population.
ƒ
Government incentives and policies conducive for private investment in
education sector
ƒ Gap between number of school going age children and actual enrolments in
schools
ƒ Growing general public awareness (especially in urban areas) about
importance of quality education
ƒ Limited access to affordable, quality education.
ƒ Minimal budget allocation by government to education sector
ƒ Limited number of government/public schools
ƒ Poor facilities in government schools
Threats
ƒ New entrants can easily share the business
ƒ Difficulty in retaining qualified teachers
ƒ Revival of public/government schools in the future through effective
government policies and regulations.

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5 PROJECT PROFILE

5-1 Opportunity Rationale


A well-educated and well-trained population is essential for the social and economic
well-being of a country. Globally, it has been observed that countries attach the
highest priority to education since the development of other sectors like health,
agriculture and industry is dependent on the development of education. In the face of
growing demand for education world over, it is readily conceded that investment in
the quantity and quality of education contributes greatly to the accumulation of
efficient human resource and sustained socio-economic growth.
With growing public awareness, the overall demand for education is already on the
rise and is likely to increase further over the years. The gap between the number of
school-going age children and the actual enrollments in schools calls for immediate
attention to increase the supply of schools.
The Government of Pakistan accepts education as fundamental right for its people
and is commitment to provide education to every citizen. But unfortunately, the
Government faces constraints due to limited financial resources available for the
education sector.
Children of relevant age group have inadequate access to education. Educational
institutions lack basic facilities. The target of minimum essential requirement of
competencies for quality education has not yet been achieved. Educational
institutions face shortage of qualified and motivated teachers, especially female
teachers. Therefore, the private sector investment is being encouraged with various
incentives to lower the burden of the Government.
During the fiscal year 2008-2009, the total education budget was Rs. 275.5 billion,
including development budget of Rs. 75.1 billion and recurring budget of Rs 200.4
billion. The education budget as percentage of GDP, for the past ten years, is given
in Table below.
Table 5-1: Expenditure on Education during 2000-01 to 2008-091 TP PT

(Billion Rs.)
Year Current Development Public sector % of GDP % of Total
Expenditure
2000-01 69.5 6.4 75.9 1.82 10.6
2001-02 70.4 8.5 78.9 1.79 9.5
2002-03 79.5 10.4 89.9 1.86 10.0
2003-04 94.3 29.9 124.2 2.20 13.0
2004-05 106.6 33.4 140.0 2.15 12.5

1
TP Source: Economic Survey of Pakistan 2008-2009
PT

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2005-06 128.9 41.9 170.8 2.24 12.2


2006-07 159.9 56.6 216.5 2.50 12.0
2007-08 190.2 63.5 253.7 2.47 9.8
2008-092 TP PT 200.4 75.1 275.5 2.10 11.52

Although, traditionally, private schools had been a luxury only the rich can afford,
this is not necessarily the case in current re-emergence of the private sector in
Pakistan's education system.
Keeping in view the significant role of the private sector in promotion of education
at various levels, Pakistani Government has introduced the concept of Public-Private
Partnership. Government incentives to private sector educational institutions are:3 TP PT

‰ Provision of free land, or land on concessional rates in rural/urban areas


‰ Exemption of 5% - 80% income tax to private sector institutions for their faculty,
management and support staff
‰ Utilities availability on non-commercial rates
‰ Provision of concessional financing for establishing rural schools
‰ Exemption of custom duties on import of educational equipment
‰ Undertaking necessary legislation to give Charter to private sector institutions
and facilitating their day to day affairs
Private schooling has now become important for the country. Enrolment in private
primary schools was in the order of 29 percent of total enrolment in 2007-08. During
2007-08, at the middle school level, the private sector had a share of 31 percent of
total enrolment. At the secondary and higher secondary level in the same year, the
private sector share was 29 percent and 18 percent respectively of the total
enrolment.4 TP PT

2
TP PT Private sector data is estimated
3
TP PT Education sector reforms Action Plan 2001- 2005 (http://www.moe.gov.pk/esrdocs.htm)
4
TP PT Pakistan Education Statistics, 2007-08 (www.moe.gov.pk)
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Figure 5-1: Private and Government school enrollment

Enrollment Enrollment
Primary level Middle level
Private
Schools
Private
*
Schools
29%
*
31%

Govt.
Schools
Govt. 69%
Schools
71%

Enrollment Enrollment
Secondary level Higher Secondary level
Private
Private
Schools
Schools
*
* 18%
29%

Govt.
Govt. Schools
Schools 82%
71%

5-2 Project Brief


This study describes the investment opportunity for setting up of a high school in
any big city of Pakistan to provide education to the children of middle and lower
middle income group. The school will start its operation by starting classes from
Nursery to Matriculation (Secondary school). Providing education from primary
level onwards ensures consistent quality of education from an early stage.
By offering quality education and modern facilities, the school is expected to earn
early recognition and parent’s trust and preference. The school can be opened in big
cities like Karachi, Lahore, Islamabad, Peshawar, Quetta, Multan, Hyderabad,
Rawalpindi, Faisalabad, etc. The area should be selected near the residents of middle
income group.

PREF-50/June, 2010/Rev 3
Pre-Feasibility Study High School

5-3 Project Cost


Initial project cost is estimated at Rs. 6.367 million. The financial structure for the
proposed pre-feasibility is assumed to consist of 50% debt and 50% equity. However
this composition of debt and equity can be changed as per the requirement of the
investor.

5-4 Project Returns


The project returns detail is given in the following table:
Table 5-2: Project Returns
Equity Project
Net Present Value 14,718,882 14,736,057
Internal Rate of Return 96% 65%
Payback Period (Years) 2.02 2.38

5-5 Viable Size


The minimum viable size for this particular school is around 720 students.

5-6 Proposed Capacity and Product Mix


For the purpose of this feasibility study, strength of 735 students has been proposed.
The first year student intake is 294 students, increasing gradually to 735 students in
the fifth year. A student dropout rate is assumed to be 5%, and new student intake is
70%.
A total of 24 classrooms have been proposed for this school, each class level
(Nursery – Class X) has two sections. Maximum capacity per section is 30 students.
Subjects offered in Matriculation will be Science (Physics, Chemistry and Biology)
and Computer Sciences (Physics, Chemistry and Computer Studies).
Schools in Pakistan typically have classes from Nursery to Matriculation; therefore
getting admission at Nursery level is relatively easier than at a later stage. This
particular school will follow the same pattern. The school will begin its operation by
starting classes from Nursery to Matriculation. Providing education from elementary
level onwards not only ensures consistent quality of education from an early stage,
but also makes it convenient because the admission process does not need to be
repeated before college, as would be the case if the school only provided education
till primary or middle level.
A table of the number of students taken at each class level is given below:

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Table 5-3: Year-wise Number of Students


Students/Year Year Year Year Year Year Year Year Year Year Year
1 2 3 4 5 6 7 8 9 10
Nursery- Prep 78 89 111 124 135 135 135 135 135 135
Class I - IV 120 158 198 221 240 240 240 240 240 240
Class V- VIII 96 158 198 221 240 240 240 240 240 240
Class IX – X - 79 99 110 120 120 120 120 120 120
Total students 294 485 605 676 735 735 735 735 735 735

5-7 Proposed Business Legal Status


The legal structure of the business entity can either be sole proprietorship or
partnership. Although the selection totally depends upon the choice of the
entrepreneur, this particular feasibility is based on a Sole Proprietorship.

6 INDUSTRY ANALYSIS
In Pakistan, education remains inequitably distributed among various income groups
and regions. Literacy and participation rates are below those in other South Asian
countries with similar level of economic development. Due to financial constraints
and requirement of managerial capacity, education targets have remained
unaccomplished. Programs approved by the Government were not completed
because of inadequate resource allocation. The slow implementation of
programs/projects undermined the efficiency of the system at all levels, significantly
in terms of qualitative improvement.
Education is the key to change and progress and the Government of Pakistan has
adopted this sector as one of the pillars for poverty reduction and benefit of masses.
The Government is committed to provide best educational facilities to its people
within the minimum possible time, by introducing its incentive for private
investment and the concept of Public-Private partnership as described earlier in the
report. The Education system of Pakistan is divided into the following tiers:
Table 6-1: Education System in Pakistan5 TP PT

Level Classes Student Age Duration


Elementary (Montessori) Playgroup, Kindergarten 3-5 years 2 years
Primary I-V 5 years 5 years
Middle VI-VIII 10 years 3 years
Secondary IX-X 13 years 2 years
Higher Secondary XI-XII 16 years 2 years
B.A (Graduate Degree) 2 years
M.A (Post-graduate Degree) 2 years
M. Phil/ Ph.D. 3 years

5
TP PT Educational Guide of Pakistan (2007-08)
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According to Pakistan Social and Living Measurement (PSLM) Survey, the over all
literacy rate, in 2007-08 was 56% compared to 55% in 2006-07. Literacy remains
higher in urban areas (71%) than in rural areas (49%) and more in men (69%)
compared to women (44%).6 Comparatively high incidence of illiteracy among
TP PT

female may be due to pervasive gender inequality and limited access to the available
educational facilities. A comparative picture of literacy rates of both sexes by
province and rural/urban division is given in table below:
Table 6-2 Literacy Rates in Percentage7 TP PT

Province/Area 2006-07 2007-08


Total Male Female Total Male Female
Pakistan 55 67 42 56 69 44
RURAL 48 63 32 49 65 36
URBAN 73 80 66 71 81 65
Balochistan 42 58 22 46 66 23
Rural 33 49 13 34 51 15
Urban 60 75 41 60 78 39
NWFP 47 67 28 49 68 33
Rural 47 68 26 48 68 30
Urban 64 78 49 65 80 52
Punjab 58 67 48 59 70 48
Rural 53 66 40 55 68 44
Urban 75 81 69 74 80 69
Sindh 55 67 42 56 69 42
Rural 37 54 17 41 59 22
Urban 74 81 65 74 82 66

The government is making serious efforts to improve the access of education by


enhancing educational facilities. The rural- urban distribution of both public and
private institutions and enrollments is given below (Table 6-3 to 6-5):8 TP PT

According to the Economic Survey of Pakistan 2008-09, Pakistan has a total of


146,603 primary schools in 2007-08 with an enrollment of 17.228 million students
and 438,823 teachers, which gives a student-teacher ratio of approximately 39:1.

6
TP PT Economic Survey of Pakistan 2008-09 (www.finance.gov.pk)
7
TP PT Economic Survey of Pakistan 2008-09 (www.finance.gov.pk)
8
TP PT Pakistan Education Statistics, 2007-08 (www.moe.gov.pk)

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Table 6-3 Total Primary Schools and Enrollment


Schools Enrollment
Urban Rural Total Urban Rural Total
Public Sector 11,859 115,612 127,471 2,287,871 9,592,802 11,880,673
Private Sector 8,297 8,873 17,170 3,116,213 1,956,583 5,072,796
Other Public9 TP PT 600 1,362 1,962 206,511 68,294 274,805
Total 20,756 125,847 146,603 5,610,595 11,617,679 17,228,274

At the middle school level 489 new schools have been established since July 2007.
The number of middle schools in 2007-2008 is now 40,829 both in rural and urban
with 320,609 teachers functional and total enrollment of 5.362 million students,
giving a student-teacher ratio of 17:1.
Table 6-4 Total Middle Schools and Enrollment
Schools Enrollment
Urban Rural Total Urban Rural Total
Public Sector 1,994 13,708 15,702 1,278,565 2,314,842 3,593,407
Private Sector 12,823 12,024 24,847 1,096,995 571,548 1,668,543
Other Public 238 42 280 88,133 12,635 100,768
Total 15,055 25,774 40,829 2,463,693 2,899,025 5,362,718

With 353 new schools added since July 2007 a total of 23,964 secondary schools
with 374,249 teachers are functional in 2007-08. Total student enrollment is 2.426
million giving an approximate student-teacher ratio of 7:1.
Table 6-5 Total High Schools and Enrollment
Schools Enrollment
Urban Rural Total Urban Rural Total
Public Sector 2,528 7,059 9,587 809,765 858,855 1,668,620
Private 9,583 4,470 14,053 532,285 170,661 702,946
Other Public 270 54 324 47,533 7,156 54,689
Total 12,381 11,583 23,964 1,389,583 1,036,672 2,426,255

As shown in the tables above, with the exception of primary level schools, the
numbers of school under the private sector category are more than in the public
sector. Irrespective, the number of enrollments are higher in the public sector
schools. It is evident from these figures that most of Pakistan’s population, despite
the availability, cannot afford private schools. Conclusively, quality education is a

9
Other public sector means institutions managed by Ministries/Divisions/ Department other than the
TP PT

Ministry of Education/Education Departments


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luxury only few can afford. The best schools of Lahore not only charge a high tuition
fee but also have limited admissions and majority of children have to settle for
substandard quality of education.

7 MARKET ANALYSIS
Currently three categories of schools are being run in Pakistan, catering to three
main segments of the market: high, middle and low income groups. The schools,
which serve the high-income groups, are running in the private sector. These schools
usually charge fee in the range of Rs. 4000 to Rs. 12,000 per month per student e.g.
Lahore Grammar School, Beaconhouse School System, National Grammar School
and Aitchison etc. These schools have large facilities and enjoy a high repute due to
their modern system of education, use of advanced teaching techniques and qualified
and specialized faculty. Most private schools fall in the second category (middle
income) having a monthly fee range from Rs. 2500 to Rs. 4000 e.g. Convent of Jesus
& Mary and Defence Public School. The third category is the low-income group
with a monthly fee between Rs. 500 to Rs. 2500, e.g. Educators and Cathedral. Most
schools belonging to this category have facilities even less than the minimum
requirement. These schools have less space per student and high student teacher
ratio.
This proposed school caters to the needs of children of middle income group. There
is stiff competition amongst the school running in the market. Parents are curious
about the future of their children so they contemplate extensively before admitting
their children in any school. Following are the main factors (not conclusive) on the
basis of which parents make their choice of schools.
1. Distance from home
2. School track record/history
3. General reputation
4. Tuition Fee
5. Qualification and experience of the school head and other faculty.
6. Physical infrastructural facilities.
7. Courses offered and medium of instruction.
Besides the above, there are some other subjective, social and status considerations
which also play an important role in parent’s decision making.

8 KEY SUCCESS FACTORS


Considering the current education situation of Pakistan; it is essential that intensive
investment is made in the right type of education, yielding high returns in terms of
enrollment and achievement rates. For any school to be successful high priority
should be attached to providing education of substantial quality.
The key lies in careful selection of education curriculum and creative teaching
methodology. A well researched, extensive curriculum and modern teaching tools
should be followed.

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Children entering school in nursery, prep, class 1, and class 2, from age three to
seven, are capable of learning and absorbing material very quickly. At this level,
experienced and qualified teachers are mandatory to the development of the child’s
communication and social skills.
A well qualified faculty sets an institution apart from all others. Teachers that are
willing to work intensively with students to induce an atmosphere of learning would
be an asset to any school.
The importance of training the teaching staff cannot be emphasized enough. Teacher
trainings should be a regular practice to ensure consistent quality of education.
Additionally, the success of a school hinges on the dedication, competence and
constant supervision by the principal, who should evaluate the performance of
teachers and students through regular checks.
Introducing English at an early stage is a feature especially attractive to parents.
"English medium" schooling is sought after by parents of all income groups. Parents
can perceive the opportunities the knowledge of English can open up for their
children.
In addition to the above factors, the teacher student ratio should be kept at minimum
level. The area of the classrooms should be in line with the number of students in
each classroom. Moreover, the classrooms should be substantially ventilated.
For pre-school students, classrooms should be well equipped with teaching as well as
extracurricular activity aids.
Parents are conscious about the well being and safety of their children at schools,
therefore, it is suggested that the school ensures security. The school should
preferably be located in a less populated area or at a location with minimum traffic
flow.
Teacher parent interaction should also be a regular feature of the education system.

9 REGULATIONS
The schools are required to be registered with the Education Department (Provincial)
in the office of Education Directorate Schools. The application is to be submitted on
a prescribed form and can be obtained from the department.
The next process is the recognition of institution from the relevant Board of
Intermediate and Secondary Education (BISE). The detailed regulations, rules and
requirement of minimum infrastructural facilities along with application form can be
obtained from the BISE office. Contact Information of BISE is given below:
Board of Intermediate & Secondary Education
Address: 86 Mozang Road, Lahore.
Phone No: (92) (42) 99200192-197
Fax No: (92) (42) 99200113

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10 HUMAN RESOURCE
The quality of Human Resource ensures success and survival of any organization.
Hiring quality human resource will ascertain success of this high school. For
progression of the school it is important to manage human resource systematically
and efficiently. The qualification and experience of the staff should be well
scrutinized. The number of administration and maintenance staff remain the same for
the ten year time period. Experienced teachers and subject specialist are hired yearly,
as students add up and consequently additional sections become operational. Key
personnel proposed for the school and their salary structure are given in table 10-1:
Table 10-1 Staff Acquisition Plan based on first year requirement

Positions Number Salary/month Total Salary/Year


Administrative Staff (Rs.) (Rs.)
Principal 1 20,000 240,000
Accountant 1 12,000 144,000
Teachers Coordinator 1 15,000 180,000
Librarian 1 10,000 120,000
Lab In-charge 2 8,000 192,000
Helpers / Peon 2 7,000 168,000
Attendants 2 7,000 168,000
Faculty Members:
Subject Specialist - 15,000 -
Senior Teacher 9 12,000 1,296,000
Junior Teacher 8 10,000 960,000
Games Teacher 1 12,000 144,000
Pre-School Teacher 6 10,000 720,000
Maintenance Staff
Guards 3 8,000 288,000
Cleaner 2 7,000 168,000
Electrician 1 8,000 96,000
Total: 40 161,000 4,884,000

11 EQUIPMENT/FURNITURE REQUIREMENT
Detail of total equipment/furniture requirement and investment for the project is
given below. Supplier information of equipment and furniture is provided in the
Annexure.
Table 11-1 IT Equipment
IT EQUIPMENT Quantity Unit Cost Amount (Rs.)
Computers - office 4 25,000 100,000
Computers - laboratory 15 25,000 375,000
Networking Cost Lump sum 50,000 50,000

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Printer 2 10,000 20,000


Scanner 1 5,000 5,000
Server 1 50,000 50,000
UPS 20 7,500 150,000
Total 750,000

Table 11-2 Office/School Equipment


OFFICE/SCHOOL EQUIPMENT Quantity Unit Cost Amount (Rs.)
Air Conditioner 3 40,000 120,000
Ceiling Fan 64 2,200 140,800
Exhaust Fan 8 1,500 12,000
Energy Saver 149 185 27,565
Heater 3 1,500 4,500
Science Lab Equipment Lump sum 100,000 100,000
Generator – 30kVA 1 300,000 300,000
Water Tank & Electric Motor 1 30,000 30,000
Water Coolers 2 20,000 40,000
Refrigerator 1 22,000 22,000
Microwave 1 7,500 7,500
Electric Kettle 1 2,000 2,000
Fire Extinguisher 4 15,000 60,000
Vacuum Cleaner 1 12,000 12,000
Telephone/Facsimile 1 12,000 12,000
Wall Clock 28 500 14,000
Security Equipment
CCTV set – 4 cameras, 1 TV 1 60,000 60,000
Concrete Barrier 5 4,000 20,000
Metal Detector 2 3,500 7,000
Barbed Wire Lump sum 7,000 7,000
Library Books - 100,000 100,000
Total 1,098,365

Table 11-3 Furniture and Fixtures


FURNITURE AND FIXTURES Total Qty Unit Cost (Rs.) Amount (Rs.)
Principal’s office
Table and chair 1 20,000 20,000
Additional chairs 6 3,000 18,000
Cupboard 1 10,000 10,000

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Staffroom
Long table 1 20,000 20,000
Chairs 24 1,500 35,250
Cupboard 2 7,500 15,000
Softboard 2 1,800 3,600
Admin block
Table 1 2,500 2,500
Chairs 2 1,500 3,000
Cupboard 1 7,500 7,500
Nursery & Prep Class
Round Tables 23 2,000 45,000
Chairs 135 800 108,000
Junior Section
Student desk and chair 240 2,000 480,000
Senior Section
Student desk and chair 360 2,000 720,000
Classroom
Cupboard 25 5,000 122,500
Whiteboard 25 2,200 53,900
Teacher Table and chair 25 2,500 61,250
Computer Laboratory
Computer Tables 15 1,500 22,500
Chairs 30 1,500 45,000
Cupboard 1 5,000 5,000
Softboard 1 1,800 1,800
Whiteboard 1 2,200 2,200
Science Laboratory
Long tables 6 15,000 90,000
Stools 60 800 48,000
Storage Cupboard 4 7,500 30,000
Whiteboard 1 2,200 2,200
Softboard 1 1,800 1,800
Library
Large Table 4 9,000 36,000
Chairs 24 1,500 36,000
Book Shelf 8 7,500 60,000
Librarian’s table and chair 1 7,000 7,000
Reception
Reception area furniture 1 15,000 15,000

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Sports Equipment
Sports equipment Lump sum 25,000 25,000
See Saw 2 10,000 20,000
4-feet slide 1 12,000 12,000
6-feet slide 1 15,000 15,000
8-feet slide 1 18,000 18,000
Monkey bar 6x6 1 10,000 10,000
Zigzag bridge 1 7,000 7,000
Monkey jumping 1 12,000 12,000
Sanitary Items
Sanitary fixture 12 25,000 300,000
Total furniture and fixtures 2,542,150

12 INFRASTRUCTURE
Though ideally, a purpose built building can best suit a school, however any building
in a peaceful environment can be rented out.
For the purpose of this study, the option of getting a two-story building for school on
rent has been recommended. Monthly rent of the building is taken at Rs. 300,000 for
an area of 3 kanals. Proposed areas within Lahore are Iqbal Town, Johar Town,
Faisal Town, Saddar – Cantt, Wapda Town, and newly established housing schemes
on Raiwind road and Ferozpur road.
Table 12-1 Area Requirements
Space Requirements Area/Room No. of Rooms Total Area
Administrative Block (Sq. ft) (Sq. ft)
Principal’s office 150 1 150
Admission office 80 1 80
Accounts office 100 1 100
Kitchen 50 1 50
Lobby 100 1 100
Store room 150 1 150
Toilet 36 2 72
Junior Branch
Classrooms 360 12 4,320
Staffroom 125 1 125
Toilet 30 6 180
Senior Branch
Classrooms 360 12 4,320
Staffroom 125 1 125
Toilet 30 4 120
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Science Laboratory 300 2 600


Computer Laboratory 300 1 300
Library 300 1 300
Space for corridor & stairs - - 2,400
10% Wall area - - 1,350
Total Covered Area 14,841
Playground - - 6,320

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13 FINANCIAL ANALYSIS

13-1 Project Detail

Initial Investment

Capital Investment Rs. in actuals


Office school equipment &Library Books 1,098,365
Furniture & fixtures 2,542,150
Computers & equipment 750,000
Pre-operating costs 396,093
Total Capital Costs 4,786,608

Working Capital Rs. in actuals


Upfront building rent 900,000
Upfront insurance payment 54,918
Cash 625,542
Total Working Capital 1,580,460

Total Investment 6,367,068

Initial Financing Rs. in actuals


Debt 50% 3,183,534
Equity 50% 3,183,534

Project Returns
EQUITY PROJECT
Net Present Value 14,718,882 14,736,057
Internal Rate of Return 96% 65%
Payback Period (Yrs) 2.02 2.38

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13-2 Projected Income Statement


Income Statement
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Revenue 11,133,000 18,335,835 23,076,659 26,537,165 30,168,318 31,135,686 32,692,471 34,327,094 36,043,449 37,845,621
Faculty Salary 3,660,000 7,299,600 8,319,960 9,311,676 10,242,844 11,267,128 12,393,841 13,633,225 14,996,547 16,496,202
Gross Profit 7,473,000 11,036,235 14,756,699 17,225,489 19,925,475 19,868,558 20,298,630 20,693,869 21,046,902 21,349,419
General administration & selling expenses
Administration expense 1,224,000 1,346,400 1,481,040 1,629,144 1,792,058 1,971,264 2,168,391 2,385,230 2,623,753 2,886,128
Building rental expense 3,600,000 3,960,000 4,356,000 4,791,600 5,270,760 5,797,836 6,377,620 7,015,382 7,716,920 8,488,612
Utilities - elec, gas, telephone 487,558 536,314 589,945 648,940 713,834 785,217 863,739 950,112 1,045,124 1,149,636
Diesel Expense for Generator 277,200 304,920 335,412 352,183 369,792 388,281 407,695 428,080 449,484 471,958
Internet & communication expense 24,000 25,200 26,460 27,783 29,172 30,631 32,162 33,770 35,459 37,232
Teacher training expense 36,000 37,800 39,690 41,675 43,758 45,946 48,243 50,656 53,188 55,848
Examination expense 108,000 113,400 119,070 125,024 131,275 137,838 144,730 151,967 159,565 167,543
Science lab expenses 90,000 94,500 99,225 104,186 109,396 114,865 120,609 126,639 132,971 139,620
School events & programmes 73,500 77,175 81,034 85,085 89,340 93,807 98,497 103,422 108,593 114,023
Computer lab expenses 18,000 18,900 19,845 20,837 21,879 22,973 24,122 25,328 26,594 27,924
Student welfare 12,000 12,600 13,230 13,892 14,586 15,315 16,081 16,885 17,729 18,616
Consultancy charges & audit fee 24,000 25,200 26,460 27,783 29,172 30,631 32,162 33,770 35,459 37,232
Newspaper, books & periodicals 60,000 63,000 66,150 69,458 72,930 76,577 80,406 84,426 88,647 93,080
Stationary & printing 120,000 126,000 132,300 138,915 145,861 153,154 160,811 168,852 177,295 186,159
Postage 18,000 18,900 19,845 20,837 21,879 22,973 24,122 25,328 26,594 27,924
Transportation & travelling 24,000 25,200 26,460 27,783 29,172 30,631 32,162 33,770 35,459 37,232
Advertisement 120,000 126,000 132,300 138,915 145,861 153,154 160,811 168,852 177,295 186,159
Office supplies 42,000 44,100 46,305 48,620 51,051 53,604 56,284 59,098 62,053 65,156
Medical & first aid 24,000 25,200 26,460 27,783 29,172 30,631 32,162 33,770 35,459 37,232
Misc. Office expense 30,000 31,500 33,075 34,729 36,465 38,288 40,203 42,213 44,324 46,540
Plantation expense 30,000 31,500 33,075 34,729 36,465 38,288 40,203 42,213 44,324 46,540
Repair & maintenance 120,000 126,000 132,300 138,915 145,861 153,154 160,811 168,852 177,295 186,159
Insurance expense 54,918 49,426 43,935 38,443 32,951 27,459 21,967 16,475 10,984 5,492
Professional fees (legal, audit, consultants, etc.) 55,665 91,679 115,383 132,686 150,842 155,678 163,462 171,635 180,217 189,228
Janitorial expense 120,000 126,000 132,300 138,915 145,861 153,154 160,811 168,852 177,295 186,159
Depreciation expense 614,052 614,052 614,052 653,458 653,458 653,458 699,075 699,075 699,075 751,884
Amortization of pre-operating costs 39,609 39,609 39,609 39,609 39,609 39,609 39,609 39,609 39,609 39,609
Subtotal 7,446,502 8,090,575 8,780,960 9,551,925 10,352,459 11,214,417 12,206,953 13,244,264 14,380,763 15,678,924
Operating Income 26,498 2,945,660 5,975,739 7,673,564 9,573,015 8,654,141 8,091,677 7,449,606 6,666,138 5,670,495
Other income 86,628 151,904 374,127 732,908 1,193,593 1,759,878 2,357,491 2,934,024 3,527,833 4,137,429
Gain / (loss) on sale of assets - - 450,000 - - 745,931 - - 976,009 -
Earnings Before Interest & Taxes 113,126 3,097,564 6,799,867 8,406,472 10,766,608 11,159,950 10,449,168 10,383,629 11,169,980 9,807,924
Interest expense 548,430 465,398 433,844 309,188 151,735 135,534 118,536 85,502 156,898 137,220
Earnings Before Tax (435,304) 2,632,166 6,366,022 8,097,284 10,614,873 11,024,416 10,330,632 10,298,127 11,013,082 9,670,705
Taxable earnings for the year (435,304) 2,196,862 6,366,022 8,097,284 10,614,873 11,024,416 10,330,632 10,298,127 11,013,082 9,670,705
Tax - 549,216 1,591,506 2,024,321 2,653,718 2,756,104 2,582,658 2,574,532 2,753,271 2,417,676
NET PROFIT/(LOSS) AFTER TAX (435,304) 2,082,951 4,774,517 6,072,963 7,961,155 8,268,312 7,747,974 7,723,595 8,259,812 7,253,028

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13-3 Projected 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
Assets
Current assets
Cash & Bank 1,225,542 1,249,550 3,090,560 7,598,784 13,341,448 20,761,201 29,521,015 37,835,868 45,993,386 54,801,836 63,410,432
Accounts receivable - 253,023 669,746 941,193 1,127,587 1,288,761 1,393,273 1,450,640 1,523,172 1,599,331 1,679,297
Pre-paid building rent 300,000 330,000 363,000 399,300 439,230 483,153 531,468 584,615 643,077 707,384 -
Pre-paid insurance 54,918 49,426 43,935 38,443 32,951 27,459 21,967 16,475 10,984 5,492 -
Total Current Assets 1,580,460 1,881,999 4,167,241 8,977,720 14,941,216 22,560,574 31,467,723 39,887,599 48,170,618 57,114,042 65,089,729

Fixed assets
Machinery & equipment 1,098,365 988,529 878,692 768,856 659,019 549,183 439,346 329,510 219,673 109,837 -
Furniture & fixtures 2,542,150 2,287,935 2,033,720 1,779,505 1,525,290 1,271,075 1,016,860 762,645 508,430 254,215 -
Office equipment 750,000 500,000 250,000 868,219 578,813 289,406 1,005,072 670,048 335,024 1,163,496 775,664
Total Fixed Assets 4,390,515 3,776,464 3,162,412 3,416,579 2,763,122 2,109,664 2,461,278 1,762,202 1,063,127 1,527,548 775,664

Intangible assets
Pre-operation costs 396,093 356,484 316,874 277,265 237,656 198,047 158,437 118,828 79,219 39,609 (0)
Total Intangible Assets 396,093 356,484 316,874 277,265 237,656 198,047 158,437 118,828 79,219 39,609 (0)
TOTAL ASSETS 6,367,068 6,014,946 7,646,527 12,671,564 17,941,993 24,868,284 34,087,438 41,768,629 49,312,964 58,681,199 65,865,393

Liabilities & Shareholders' Equity


Current liabilities
Accounts payable - 83,182 249,082 354,990 400,719 444,421 488,863 537,749 591,524 650,677 715,744
Total Current Liabilities - 83,182 249,082 354,990 400,719 444,421 488,863 537,749 591,524 650,677 715,744

Other liabilities
Long term debt 3,183,534 3,183,534 2,566,265 2,276,767 1,428,504 349,938 753,802 638,132 405,097 872,620 738,718
Total Long Term Liabilities 3,183,534 3,183,534 2,566,265 2,276,767 1,428,504 349,938 753,802 638,132 405,097 872,620 738,718

Shareholders' equity
Paid-up capital 3,183,534 3,183,534 3,183,534 3,617,643 3,617,643 3,617,643 4,120,179 4,120,179 4,120,179 4,701,927 4,701,927
Retained earnings - (435,304) 1,647,647 6,422,163 12,495,127 20,456,282 28,724,594 36,472,568 44,196,163 52,455,975 59,709,003
Total Equity 3,183,534 2,748,230 4,831,181 10,039,807 16,112,770 24,073,925 32,844,773 40,592,747 48,316,343 57,157,902 64,410,931
TOTAL CAPITAL AND LIABILITIES 6,367,068 6,014,946 7,646,527 12,671,564 17,941,993 24,868,284 34,087,438 41,768,629 49,312,964 58,681,199 65,865,393

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13-4 Projected Cash Flow Statement


Cash Flow Statement
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Operating activities
Net profit - (435,304) 2,082,951 4,774,517 6,072,963 7,961,155 8,268,312 7,747,974 7,723,595 8,259,812 7,253,028
Add: depreciation expense - 614,052 614,052 614,052 653,458 653,458 653,458 699,075 699,075 699,075 751,884
amortization expense - 39,609 39,609 39,609 39,609 39,609 39,609 39,609 39,609 39,609 39,609
Accounts receivable - (253,023) (416,724) (271,447) (186,394) (161,174) (104,512) (57,367) (72,532) (76,159) (79,967)
Pre-paid building rent (300,000) (30,000) (33,000) (36,300) (39,930) (43,923) (48,315) (53,147) (58,462) (64,308) 707,384
Advance insurance premium (54,918) 5,492 5,492 5,492 5,492 5,492 5,492 5,492 5,492 5,492 5,492
Accounts payable - 83,182 165,900 105,908 45,729 43,702 44,442 48,886 53,775 59,152 65,068
Cash provided by operations (354,918) 24,008 2,458,280 5,231,831 6,590,927 8,498,319 8,858,486 8,430,523 8,390,553 8,922,674 8,742,499

Financing activities
Change in long term debt 3,183,534 - (617,269) (289,498) (848,263) (1,078,566) 403,864 (115,670) (233,035) 467,523 (133,902)
Change in short term debt - - - - - - - - - - -
Issuance of shares 3,183,534 - - 434,109 - - 502,536 - - 581,748 -
Cash provided by / (used for) financing activ 6,367,068 - (617,269) 144,612 (848,263) (1,078,566) 906,400 (115,670) (233,035) 1,049,271 (133,902)

Investing activities
Capital expenditure (4,786,608) - - (868,219) - - (1,005,072) - - (1,163,496) -
Cash (used for) / provided by investing activ (4,786,608) - - (868,219) - - (1,005,072) - - (1,163,496) -

NET CASH 1,225,542 24,008 1,841,010 4,508,224 5,742,664 7,419,753 8,759,814 8,314,853 8,157,518 8,808,450 8,608,596

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13-5 Fee Income


Year - I Year - II Year - III Year - IV Year - V
Per Per Per Per Per
No. Rupees No. Rupees No. Rupees No. Rupees No. Rupees
Student Student Student Student Student

Number of Students
New 294 206 144 101 93
Old - 279 461 575 642
294 485 605 676 735
Non-Operating Revenue
Security (Refundable) 2,000 588,000 2,100 432,180 2,205 317,652 2,315 233,474 2,431 226,749
Registration Fee 2,500 735,000 2,625 540,225 2,756 397,065 2,894 291,843 3,039 283,436
Admission Fee 5,000 1,470,000 5,250 1,080,450 5,513 794,131 5,788 583,686 6,078 566,872
2,205,000 1,620,675 1,191,196 875,529 850,307
Operating Revenue

Monthly Fee

135 Nursery to Prep 2,000 78 1,872,000 2,100 89 2,245,320 2,205 111 2,939,838 2,315 124 3,447,085 2,431 135 3,938,240
240 I to IV 2,500 120 3,600,000 2,625 158 4,989,600 2,756 198 6,532,974 2,894 221 7,660,190 3,039 240 8,751,645
375 198 5,472,000 248 7,234,920 309 9,472,812 345 11,107,275 375 12,689,885
0
240 V to VIII 3,000 96 3,456,000 3,150 158 5,987,520 3,308 198 7,839,569 3,473 221 9,192,228 3,647 240 10,501,974
120 IX to X (Matric) 3,500 - - 3,675 79 3,492,720 3,859 99 4,573,082 4,052 110 5,362,133 4,254 120 6,126,152
360 96 3,456,000 238 9,480,240 296 12,412,651 331 14,554,361 360 16,628,126
Net Fee 294 11,133,000 485 18,335,835 605 23,076,659 676 26,537,165 735 30,168,318

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Y - VI Y - VII Y - VIII Y - IX Y-X


Per Per Per Per Per
No. Rupees No. Rupees No. Rupees No. Rupees No. Rupees
Student Student Student Student Student

Number of Students
New 37 37 37 37 37
Old 698 698 698 698 698
735 735 735 735 735
Non-Operating Revenue
Security (Refundable) 2,553 93,807 2,680 98,497 2,814 103,422 2,955 108,593 3,103 114,023
Registration Fee 3,191 117,258 3,350 123,121 3,518 129,277 3,694 135,741 3,878 142,528
Admission Fee 6,381 234,517 6,700 246,243 7,036 258,555 7,387 271,482 7,757 285,057
351,775 369,364 387,832 407,224 427,585
Operating Revenue

Monthly Fee

135 Nursery to Prep 2,553 135 4,135,152 2,680 135 4,341,910 2,814 135 4,559,005 2,955 135 4,786,956 3,103 135 5,026,303
240 I to IV 3,191 240 9,189,227 3,350 240 9,648,689 3,518 240 10,131,123 3,694 240 10,637,679 3,878 240 11,169,563
375 375 13,324,380 375 13,990,598 375 14,690,128 375 15,424,635 375 16,195,867

240 V to VIII 3,829 240 11,027,073 4,020 240 11,578,426 4,221 240 12,157,348 4,432 240 12,765,215 4,654 240 13,403,476
120 IX to X (Matric) 4,467 120 6,432,459 4,690 120 6,754,082 4,925 120 7,091,786 5,171 120 7,446,375 5,430 120 7,818,694
360 360 17,459,532 360 18,332,508 360 19,249,134 360 20,211,590 360 21,222,170
Net Fee 735 31,135,686 735 32,692,471 735 34,327,094 735 36,043,449 735 37,845,621

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13-6 Estimated Expenses


Year - I Year - II Year - III Year - IV Year - V
Total for the Total for the Total for the Total for the Total for the
No. Monthly Year No. Monthly Year No. Monthly Year No. Monthly Year No. Monthly Year
(Rupees) (Rupees) (Rupees) (Rupees) (Rupees)
Salary & Allowances
Administration:
Principal 1 20,000 240,000 1 22,000 264,000 1 24,200 290,400 1 26,620 319,440 1 29,282 351,384
Teachers Coordinator 1 15,000 180,000 2 16,500 396,000 2 18,150 435,600 2 19,965 479,160 2 21,962 527,076
Librarian 1 10,000 120,000 1 11,000 132,000 1 12,100 145,200 1 13,310 159,720 1 14,641 175,692
3 540,000 4 792,000 4 871,200 4 958,320 4 1,054,152
Faculty Member:
Subject Specialist - 15,000 - 3 16,500 594,000 3 18,150 653,400 3 19,965 718,740 3 21,962 790,614
Games Teacher 1 12,000 144,000 1 13,200 158,400 1 14,520 174,240 1 15,972 191,664 1 17,569 210,830
Senior Teachers 9 12,000 1,296,000 18 13,200 2,851,200 18 14,520 3,136,320 18 15,972 3,449,952 18 17,569 3,794,947
Junior Teachers 8 10,000 960,000 16 11,000 2,112,000 16 12,100 2,323,200 16 13,310 2,555,520 16 14,641 2,811,072
Pre-School Teachers 6 10,000 720,000 6 11,000 792,000 8 12,100 1,161,600 9 13,310 1,437,480 9 14,641 1,581,228
24 3,120,000 44 6,507,600 46 7,448,760 47 8,353,356 47 9,188,692
Admin Staff
Accountant 1 12,000 144,000 1 13,200 158,400 1 14,520 174,240 1 15,972 191,664 1 17,569 210,830
Lab incharge 2 8,000 192,000 2 8,800 211,200 2 9,680 232,320 2 10,648 255,552 2 11,713 281,107
Attendants 2 7,000 168,000 2 7,700 184,800 2 8,470 203,280 2 9,317 223,608 2 10,249 245,969
Helpers / Peon 2 7,000 168,000 2 7,700 184,800 2 8,470 203,280 2 9,317 223,608 2 10,249 245,969
7 672,000 7 739,200 7 813,120 7 894,432 7 983,875
Maintenance Staff :
Guards 3 8,000 288,000 3 8,800 316,800 3 9,680 348,480 3 10,648 383,328 3 11,713 421,661
Electrician 1 8,000 96,000 1 8,800 105,600 1 9,680 116,160 1 10,648 127,776 1 11,713 140,554
Cleaner 2 7,000 168,000 2 7,700 184,800 2 8,470 203,280 2 9,317 223,608 2 10,249 245,969
6 552,000 6 607,200 6 667,920 6 734,712 6 808,183
Total Staff 40 4,884,000 61 8,646,000 63 9,801,000 64 10,940,820 64 12,034,902

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Year - VI Year - VII Year - VIII Year - IX Year - X


Total for the Total for the Total for the Total for the Total for the
No. Monthly Year No. Monthly Year No. Monthly Year No. Monthly Year No. Monthly Year
(Rupees) (Rupees) (Rupees) (Rupees) (Rupees)
Salary & Allowances
Administration:
Principal 1 32,210 386,522 1 35,431 425,175 1 38,974 467,692 1 42,872 514,461 1 47,159 565,907
Teachers Coordinator 2 24,158 579,784 2 26,573 637,762 2 29,231 701,538 2 32,154 771,692 2 35,369 848,861
Librarian 1 16,105 193,261 1 17,716 212,587 1 19,487 233,846 1 21,436 257,231 1 23,579 282,954
4 1,159,567 4 1,275,524 4 1,403,076 4 1,543,384 4 1,697,722
Faculty Member:
Subject Specialist 3 24,158 869,675 3 26,573 956,643 3 29,231 1,052,307 3 32,154 1,157,538 3 35,369 1,273,292
Games Teacher 1 19,326 231,913 1 21,259 255,105 1 23,385 280,615 1 25,723 308,677 1 28,295 339,544
Senior Teachers 18 19,326 4,174,442 18 21,259 4,591,886 18 23,385 5,051,075 18 25,723 5,556,182 18 28,295 6,111,800
Junior Teachers 16 16,105 3,092,179 16 17,716 3,401,397 16 19,487 3,741,537 16 21,436 4,115,691 16 23,579 4,527,260
Pre-School Teachers 9 16,105 1,739,351 9 17,716 1,913,286 9 19,487 2,104,614 9 21,436 2,315,076 9 23,579 2,546,584
47 10,107,561 47 11,118,317 47 12,230,149 47 13,453,163 47 14,798,480
Admin Staff
Accountant 1 19,326 231,913 1 21,259 255,105 1 23,385 280,615 1 25,723 308,677 1 28,295 339,544
Lab incharge 2 12,884 309,218 2 14,172 340,140 2 15,590 374,154 2 17,149 411,569 2 18,864 452,726
Attendants 2 11,274 270,566 2 12,401 297,622 2 13,641 327,384 2 15,005 360,123 2 16,506 396,135
Helpers / Peon 2 11,274 270,566 2 12,401 297,622 2 13,641 327,384 2 15,005 360,123 2 16,506 396,135
7 1,082,263 7 1,190,489 7 1,309,538 7 1,440,492 7 1,584,541
Maintenance Staff :
Guards 3 12,884 463,827 3 14,172 510,210 3 15,590 561,231 3 17,149 617,354 3 18,864 679,089
Electrician 1 12,884 154,609 1 14,172 170,070 1 15,590 187,077 1 17,149 205,785 1 18,864 226,363
Cleaner 2 11,274 270,566 2 12,401 297,622 2 13,641 327,384 2 15,005 360,123 2 16,506 396,135
6 889,002 6 977,902 6 1,075,692 6 1,183,261 6 1,301,587
Total Staff 64 13,238,392 64 14,562,231 64 16,018,455 64 17,620,300 64 19,382,330

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13-7
T Subject Detail T

Subject Detail
Classes
Sections 2 2 2 2 2 2 2 2 2 2
Subjects I II III IV V VI VII VIII IX X
Urdu
English
Maths
Computer sciences
Science
Art
Islamyat
Social Studies
Geography
History
Physics
Chemistry
Biology/Computer

No. of Teachers Junior Section Senior Section Subject Specialist


Section-1 8 9
Section-II 8 9
Subject Specialist 3

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14 KEY ASSUMPTIONS

14-1 Financial Assumptions


Interest Rate
Short Term Loan 14%
Long Term Loan 16%
Interest on cash in bank 7%
Project Financing
Equity 50%
Debt 50%
Long Term Loan Repayment (Yrs) 5
Tax rate10 TP PT 25%
Insurance expense 5%

14-2 Miscellaneous Assumptions


Salaries growth rate 5%
Student fee growth rate 5%
Expense growth rate 5%
Electricity growth rate 10%
Rent growth rate 10%
Student dropout rate 5%
New student intake 70%
Depreciation on: (Written Down Value)
Furniture & Fix. 10%
Electric & other equipment 10%
IT Equipment 33%
Life of furniture and equipment 10 years
Life of IT equipment 3 years
Cash in Hand (Days) 30
Operational hours/day 7
Operational days/week 6

10
TP PT Tax rate is fixed through out the project since the income falls in 25% tax deduction slab
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15 ANNEXURE

1) School Furniture Suppliers and Markets


i. Decora Furniture – Lahore
Address: 47-Ferozpur Road, Lahore, Pakistan
Tel: +92-42-37554862
ii. Interwood Mobel – Lahore
Address: 117-E-1,Gulberg-III,Lahore
Tel: +92-42-35870222-6549123-5711117
Fax: +92-42-36549126
Email: sales@interwoodmobel.com
URL: http://www.interwoodmobel.com
iii. Javaid & Co. – Lahore
Address: 29130-Nishter Road, Lahore
Tel: +92-42-37653007
iv. Master Fibre Glass – Lahore
Address: 47-C,3 Miraj Building, Ferozepur Road, Lahore
Tel: +92-42-35010010
v. Koncept Furniture - Gujrat
Address: Dheerkay By Pass, G.T. Road, Gujrat, Pakistan
Tel: +92-300-6233455
vi. Nisbat Road Market - Lahore
vii. Ferozepur Road Market - Lahore

2) IT Equipment Markets
i. Hafeez Centre - Lahore
ii. Hall Road - Lahore

3) Electrical Equipment and Appliances Suppliers and Markets


i. Asian Electronics
Address: 7-C, Ground Floor, Abid Market, Shadab Colony, Temple Road, Lahore
Tel: +92-42-35030276
Fax: +92-42-36372772
E-mail: asian_elc@hotmail.com
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ii. Volta Electrical Equipment


Address: 81-3, Shahra-e-Quaid-e-Azam, Lahore
Tel: +92-42-36304616, 36301546
iii. VIP Electronics
Address: G-1, Ahmed Plaza, Main Hall Road, Lahore
Tel: +92-42-37220089, 37230089
Fax: +92-42-37233534
iv. Swans International
Address: 50-F, Main Gulberg-III, Lahore
Tel: +92-42-35752839, 35877761
Fax: +92-42-35753901
E-mail: swansintl@technologist.com
v. Madina Electronics
Address: 126-A, Temple Road, Lahore
Tel: +92-42-37356612, 37356740
vi. Abid Market - Lahore
vii. Hall Road - Lahore

4) Educational Experts/Consultants
i. Ms. Rozina Jumani
Director Planning and Capacity Building/Educational Consultant
Email: rozinajumani@gmail.com
ii. FINCON Services Inc. Pakistan
House #798 Street 16, Sector
I-8/2 Islamabad 46000, Pakistan
Phone: 92-51-3410-0933
Fax: 92-51-3444-3993
iii. Academy for Educational Development
House 299, Street 19, E-7, Aurangzeb Road, Islamabad
Tel: 92-51-3265-4091-3
Fax: 92-51-3265 4094
E-mail: aedpk@comsats.net.pk
Website: www.aed.org

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iv. Aga Khan University Institute for Educational Development


F.B. Area, Karimabad, P.O. Box 13688,
Karachi 75950, Pakistan
Tel: 92-21-3634-7611
Fax: 92-21-3634-7616, 3634-6624
Email: ied@aku.edu

5) Tax deduction income slabs

Income Slabs Tax Rate


0.00%
100,000 – 110,000 0.50%
110,000 – 125,000 1.00%
125,000 – 150,000 2.00%
150,000 – 175,000 3.00%
175,000 – 200,000 4.00%
200,000 – 300,000 5.00%
300,000 – 400,000 7.50%
400,000 – 500,000 10.00%
500,000 – 600,000 12.50%
600,000 – 800,000 15.00%
800,000 – 1,000,000 17.50%
1,000,000 – 1,300,000 21.00%
1,300,000 and above 25.00%

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