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Pre-Feasibility Study

(Day Care Center)

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 Complex, 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
Khyber Pakhtunkhwa

REGIONAL OFFICE
Balochistan

3rd Floor, Building No. 3,
Aiwan-e-Iqbal Complex,
Egerton Road Lahore,
Tel: (042) 111-111-456
Fax: (042) 36304926-7
helpdesk.punjab@smeda.org.pk

5th Floor, Bahria
Complex II, M.T. Khan Road,
Karachi.
Tel: (021) 111-111-456
Fax: (021) 35610572
helpdesk-khi@smeda.org.pk

Ground Floor
State Life Building
The Mall, Peshawar.
Tel: (091) 111-111-456
Fax: (091) 5286908
helpdesk-pew@smeda.org.pk

Bungalow No. 15-A
Chaman Housing Scheme
Airport Road, Quetta.
Tel: (081) 2831623, 2831702
Fax: (081) 2831922
helpdesk-qta@smeda.org.pk

Note: All SMEDA Services / information related to PM's Youth Business Loan are Free of Cost
May, 2014

..........................9 PROJECT ECONOMICS .................................................................................................................................5 11... BRIEF DESCRIPTION OF PROJECT & PRODUCT ............ 2 2................ POTENTIAL TARGET MARKETS & CITIES .......... 6 11.................. CONTACT DETAILS OF DAY CARE CENTRE EQUIPMENT SUPPLIERS ............................................. 7 EQUIPMENT REQUIREMENT ..........................................................1 11........................1 13..................................................7 11...................................................................15 14...................................................................................................................... 5 9.....................................................................13 CASH FLOW STATEMENT ................................... 3 5.........................................................................................2 13.........................................................1............................................................................. 4 6.................................................................................... INSTALLED & OPERATIONAL CAPACITIES ....... KEY ASSUMPTIONS...................................................................... 8 HUMAN RESOURCE REQUIREMENT ............................................................... CRITICAL FACTORS ...................................................... PROJECT COST SUMMARY ....... 10 13....8 11................2 11....................... PURPOSE OF THE DOCUMENT ..................................................................................................................... 12 13................... 7 SPACE REQUIREMENT ............................... 4 7.............................................................................. 8 FURNITURE & FIXTURES REQUIREMENT ................................................. 5 8.......................................10 OTHER COSTS..................... GEOGRAPHICAL POTENTIAL FOR INVESTMENT ........ INTRODUCTION TO SMEDA .............................. 6 10...............12 BALANCE SHEET .............................Pre-feasibility Study Day Care Center (Rs........... 6 11..............3 13........................................12 Million) TABLE OF CONTENTS 1.............................................. 9 REVENUE GENERATION ...................3 11...................................................... 17 ......................................................................................................................................... DISCLAIMER ..................................15 USEFUL LINKS .. ANNEXURE.................................................................14 USEFUL PROJECT MANAGEMENT TIPS............4 11................ INTRODUCTION TO SCHEME ........10 12.................. 6 PROJECT FINANCING ........................................... 3 3.................................. EXECUTIVE SUMMARY ...............................6 11............... 7 PROJECT COST ..................................................................................................................5 INCOME STATEMENT .4 13.............................. 3 4...........................................................

it is based upon certain assumptions which may differ from case to case.pk SMEDA Services / Information related to PM’s Youth Business Loan are FREE OF COST 2 .org. 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.1. including taking professional advice from a qualified consultant / technical expert before taking any decision to act upon the information.12 Million) 1. the material included in this document is based on data / information gathered from various reliable sources.Pre-feasibility Study Day Care Center (Rs. Although. The contained information does not preclude any further professional advice. please contact our website: www.smeda. The information has been provided on ‘as is where is’ basis without any warranties or assertions as to the correctness or soundness thereof. SMEDA. however. DISCLAIMER This information memorandum is to introduce the subject matter and provide a general idea and information on the said subject. Although. the contained information may vary due to any change in any of the concerned factors. 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. due care and diligence has been taken to compile this document. and the actual results may differ substantially from the presented information.

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. 5. Concurrent to the prefeasibility studies. scale and competitiveness of SMEs". and certain industrial norms that become a guiding source regarding various aspects of business set-up and it’s successful management.12 Million) 2.1. through development of the SME sector. The purpose of this document is to facilitate potential investors in Day Care Center by providing them a general understanding of the business with the intention of supporting potential investors in crucial investment decisions. PURPOSE OF THE DOCUMENT The objective of the pre-feasibility study is primarily to facilitate potential entrepreneurs in project identification for investment. best practices developed by existing enterprises by trial and error. a broad spectrum of business development services is also offered to the SMEs by SMEDA.0 Billion for the year 2013-14. access to finance. marketing. for young entrepreneurs. Apart from carefully studying the whole document. INTRODUCTION TO SCHEME Prime Minister’s Youth Business Loan. strategic initiatives. start-up. with an allocated budget of Rs. 3. which form basis of any investment decision. business development services. institutional collaboration and networking initiatives. is designed to provide subsidised SMEDA Services / Information related to PM’s Youth Business Loan are FREE OF COST 3 . production. With a mission "to assist in employment generation and value addition to the national income. 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. Preparation and dissemination of prefeasibility studies in key areas of investment has been a hallmark of SME facilitation by SMEDA. finance and business management. SMEDA has carried out ‘sectoral research’ to identify policy. by helping increase the number.Pre-feasibility Study Day Care Center (Rs. one must consider critical aspects provided later on. 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). 4. The project pre-feasibility may form the basis of an important investment decision and in order to serve this objective. the document / study covers various aspects of project concept development.

Small business loans from Rs.000) beneficiaries.37 million respectively. payback period and NPV are 47%. through designated financial institutions.77 million and working capital of Rs. The demand for day care centers is on the rise. is characterized by independent family system.12 Million) financing at 8% mark-up per annum for one hundred thousand (100. teachers. government servants. keeping in view the rationale and demand. SMEDA Services / Information related to PM’s Youth Business Loan are FREE OF COST 4 . Higher return on investment and a steady growth of business is expected with the entrepreneur (especially women) having some prior experience in the related field of business. the trend of sending children to Day Care Centres at a much earlier age is gaining rapid acceptance. initially by The National Bank of Pakistan (NBP) and The First Women Bank Limited. The project features a facility and its ancillary services for children aged 6 months to 5 years in a hygienic and activity based educational environment. The project will generate direct employment opportunity for 7 persons. today. calculations have been made on the assumption of 23 enrolments for the first year of operations. 5.12 million with fixed investment of Rs. facilitated through trained and educated staff. (FWBL). This has further added to complexity and competition of any metropolitan city. quality education for children. Balochistan.0 million with tenure up to 8 years.35 million. specifically by working mothers (doctors. As a result of these social changes.. Karachi. Sindh. 6.39 years and Rs.Pre-feasibility Study Day Care Center (Rs. The project can be used for a maximum of 30 enrolments. IRR. 0. resulting in increased pressure on working women to efficiently manage both their professional and domestic responsibilities. 0. EXECUTIVE SUMMARY Life. 2. Sialkot and Quetta etc. however. need for improved living standards. etc). Khyber Pakhtunkhwah. and the service is deemed as a profitable entrepreneurship opportunity.1. and a debt : equity of 90 : 10 will be disbursed to SME beneficiaries across Pakistan. Given the cost assumptions. Total cost estimate of the project is Rs. Economic pressures are compelling both parents to work towards achieving and sustaining quality life standards. covering. business women. corporate employees. inclusive of grace period of 1 year.1 million to Rs. BRIEF DESCRIPTION OF PROJECT & PRODUCT The fast paced life of the cities is significantly influencing the life style of its inhabitants. 0. 1. Gilgit Baltistan. etc. 2. Punjab. Gujranwala. Peshawar. Azad Jammu & Kashmir and Federally Administered Tribal Areas (FATA). Lahore. Multan. Day Care Center is proposed to be located in major cities such as Islamabad. 2.

• Secured.).35 million. flue. • Hiring of a well-trained / experienced care provider for kids. Like colorful walls with educational material. however.39 years. INSTALLED & OPERATIONAL CAPACITIES It is proposed that infants of age more than 6 months and children of ages up to 5 years may be enrolled in the center. and any other cost effective mode deem appropriate. it assumed that 23 enrolments would be made during first year of its operation. The centre will have a maximum capacity of 30 enrolments.000 sq.12 million. hazard free. The total project cost for setting up this centre is estimated at Rs.. Initially. The centre would have the maximum capacity of providing service to 30 children. diaper rash and any other observation important for child development. • Parents are informed immediately in case of strike. covered area with a reasonable front / back yard. etc. • Developing plan of daily activities of enrolled kids. the capital cost is estimated at Rs. The proposed centre will offer a hygienic and efficiently managed care facility for children aged 6 months to 5 years. 0. The proposed centre is recommended to be established in a rented building/house having around 3. The project is financed through 90% debt and 10% equity. • Frequent interaction between care provider and parent. 2.37 million with an IRR of 47% and payback period of 2. kid is unwell (fever. 7.77 million and working capital of Rs. 1. CRITICAL FACTORS The proposed project has following factors critical to success. • Establishment of the Center in a rented building to reduce the project cost. and clean.ft. The project NPV is around Rs. out of which.12 Million) This pre-feasibility study provides basic information for setting-up a day care centre with modern learning techniques and extracurricular activities. diarrhea. and kids friendly environment is provided at center. 8. • Extra care should be given to keep the place hygienic.Pre-feasibility Study Day Care Center (Rs. • Interior of Center should be designed to attract kids attention and promote learning. pasting theme oriented chart papers.1. 0. the overall utilization in the first year of operation would be 75% SMEDA Services / Information related to PM’s Youth Business Loan are FREE OF COST 5 . • Opening of center with proper launch and promotional material. • Location of the center in a commercial area.

11. 11.39 Net Present Value (NPV) Rs. etc. therefore. Quetta.e. however. it is recommended that the proposed project may be established in major cities such as Islamabad. PROJECT COST SUMMARY A detailed financial model has been developed to analyze the commercial viability of Day Care Center under the ‘Prime Minister’s Youth Business Loan’. Various cost and revenue related assumptions along with results of the analysis are outlined in this section. The projected Income Statement. The following table shows internal rate of return and payback period. Cash Flow Statement and Balance Sheet are attached as appendices. Multan.12 Million) (i. and Peshawar. 2.Pre-feasibility Study Day Care Center (Rs. Islamabad. Keeping in view the economic and social factors. 9. However the project may also be opened in other cities and towns after careful market analysis. can be targeted as potential customers.1. Lahore.371. However. offers a very lucrative business opportunity for opening up well planned Day Care Centres. in line with the selected target market. it is recommended that the centre should be located in an easily approachable location. Peshawar. Quetta. Table 1: Project Economics Description Details Internal Rate of Return (IRR) 47% Payback Period (yrs) 2. GEOGRAPHICAL POTENTIAL FOR INVESTMENT The increasing population and high concentration of educated / working class in major cities like Karachi. Multan.782 SMEDA Services / Information related to PM’s Youth Business Loan are FREE OF COST 6 . POTENTIAL TARGET MARKETS & CITIES The target market for the proposed centre is working couple having infants of age more than 6 months to children of ages up to 5 years. a target of 23 enrolments is assumed in year 01 of the proposed center.. The business community also has a positive response towards the idea of day care center due to their busy schedules and. 10. Karachi.1 Project Economics The proposed venture has the capacity of 30 enrolments. Lahore. This initial capacity is assumed to grow at a constant rate of 5% in subsequent years. Gujranwala. 23 kids would be enrolled).

location.466 Markup to the Borrower 11.851 Space Requirement It is recommended that the proposed project should be established in a rented building.4 27.500 Pre Operating Cost 42.011.996 Total Project Cost 11.1.000 Cash 108. curricular and extracurricular activities.000 sq. preferably lower portion of a house having an area of 3. with two bedrooms SMEDA Services / Information related to PM’s Youth Business Loan are FREE OF COST 7 .) Office Equipment Furniture & Fixtures 452.855 Upfront Building Rent 240. safety.000 Machinery & Equipment 252. hygienic environment.123. staff.500 1.996 Initial Working Capital 348. Table 2: Project Financing Description Details Total Equity (10%) Bank Loan (90%) Rs. Table 3: Capital Investment for the Project Capital Investment Amount (Rs. etc.12 Million) Returns on the scheme and its profitability are highly dependent on the efficiency of operations.112.ft.855 Total Capital Costs 774. 11.1.2 Project Financing Following table provides details of the equity required and variables related to bank loan.Pre-feasibility Study Day Care Center (Rs.385 Rs.3 8% Tenure of the Loan (Years) 8 Grace period (year) 1 Project Cost Following requirements have been identified for operations of the proposed business.

000 50.6 paints.000 12. kitchen equipment (microwave.000 8.000 30.5 Equipment Requirement The basic requirements for a day care center include activity based equipment for outdoor/play area activities (slides. refrigerator.000 per month. one kitchen and a reasonable front / back yard.000 252.000 50.000 8.000 1.12 Million) and attached bath.). entertainment equipment (LCD. Total Cost 15. merry-go-round and swings etc.000 toys.. 40. char papers.Pre-feasibility Study Day Care Center (Rs. 11.). colours.000 4.1. utensils.000 20.000 12. Qty Cost/Unit 1 1 1 2 2 3 4 1 1 1 1 15. Total 11.000 32.000 8.000 10.000 1. Details of the equipment are given as below. books. etc.000 10.000 25.000 10. DVD player) and sleeping cots / beds.500 3. blocks. educational toys.000 30.000 20.000 25. Table 4: Equipment Required for Center and Office Equipment Details Slide (iron) Merry-go-round Swings (Outdoor) (3 seater) Baby eating seat Baby rocker / swing chair Sleeping cot Mattress Soft boards Burner stove Microwave Refrigerator Kitchen utensils Miscellaneous (books.500 3. etc. equipment for indoor activities (soft boards.). colors.500 Furniture & Fixtures Requirement Furniture & fixtures requirement for the project is detailed as under: Table 5: Furniture & Fixture Detail SMEDA Services / Information related to PM’s Youth Business Loan are FREE OF COST 8 . paints.000 16. one drawing / dining room. The rent for the building is estimated at Rs.000 30. all of which are readily available in the local market.

500 8.000 4 11.000 452.000 40.12 Million) Description Office chairs Office table Sofa cum bed Seating chairs (children) Study table (indoor) Book rack (Library) Eating table (8 chairs) Carpeting & Furnishings Electric wiring & lighting LCD DVD Player Air conditioners (1. The nannies should be at least intermediate pass with good communication skills and empathy for children.000 30 10.000 Human Resource Requirement The manpower required for operating the Day Care Center is as follows: Description Owner / Manager Nannies 1 Helper / Junior staff Guard Total Table 6: Human Resource Detail Quantity Monthly Salary / employee (Rs.000 50.000 10.000 40.000 10.000 15.000 45.000 8.000 10.000 15.000 It is highly recommended that nannies should be qualified females so that parents can be assured of about their child’s proper care and safety. Moreover.000 10.Pre-feasibility Study Day Care Center (Rs.5 ton window) UPS (3KVA) with batteries Total Furniture & Fixtures 11. the owner/manager should develop a daily plan for kids’ activities including: 1 It is assumed that 1 nanny is required for 5-6 children.000 1 1 1 2 1 2.000 100.000 44.000 45.000 1 10.000 20. and preferably trained for childcare.000 54.000 10.) 5. SMEDA Services / Information related to PM’s Youth Business Loan are FREE OF COST 9 .000 10.000 79.000 Total Cost (Rs.) 1 15.) 15.000 1 7 Total Monthly Salary (Rs.000 2.000 30.000 90.000 5.000 10.000 10.7 Qty Cost/Unit 2 1 2 27 2 2 2 3.1.000 30.

12. sharing.000 23 Monthly Revenue (Rs) Annual Revenue 11. manners. and for infants feed every 2 hours) Diaper change every 3-4 hours or as desired. days. pasting. lunch.8 Revenue Generation It is proposed that infants of more than 6 months of ages to children of 5 years of ages be enrolled in the center. transport. Table 7: Revenue Detail Fees / month (Rs. theme of the week. alphabets/colors/number recognition songs and physical moves acted together kids and caregivers) Colouring. etc). etc) Also give them other basic ideas regarding family. vomit./Unit) First Year Enrolment 8. The project would have a total capacity of 30 enrollments. This will include recording child meal times and quantity eaten.12 Million) One hour circle time daily full of action.1. music and fun for kids (covering nursery rhymes.000 2. gas & water. 11. it is assumed that project capacity would be 23 enrolments in year 01 of its operation.208. any unusual occurrence (fever.Pre-feasibility Study • Day Care Center (Rs. and painting activities Share with kids concept of different festivals of Pakistan (Pakistan day. Quaid-e-Azam Day. greetings. animals. tea time. Play time (indoor & outdoor) Nap time Dinning (Breakfast. whereas cost of fuel must be kept in mind for generator expenses. places. seasons. fight. keeping in view market research and analysis. senses. However. body parts. Eid. CONTACT DETAILS OF DAY CARE CENTRE EQUIPMENT SUPPLIERS Below is the list of major suppliers of Children Toys for Day Care Center: SMEDA Services / Information related to PM’s Youth Business Loan are FREE OF COST 10 . • • • • • • • Each child Parent be asked to send a daily diary to record daily report of their child. Iqbal Day. diaper changes. milk/ water intake time and ounces consumed.9 184. etc.000 Other Costs The primary overhead cost of the project would be utilities comprising electricity.

Mob: 0336-4050607 www. Liberty Market.1.babyland. SMEDA Services / Information related to PM’s Youth Business Loan are FREE OF COST 11 .pk Other local wholesale market in different cities maybe contacted for the said purpose.Pre-feasibility Study Babyland Toys 1st Floor.35972162 www.kaymu. Pakistan Tel: 042-35757468. Sheikh Innayat-Ullah Building. Lahore. Pakistan Tel: 042 .12 Million) Kaymu Toys Arfa Software Technology Park Ferozpur Road.com Day Care Center (Rs. Lahore. Gulberg 3.

733 23.594 192.536 1.180.587 850.128 352.277.720 638.208.001.959 145.1 Income Statement Income Statement Revenue Cost of sales Operation costs 1 (direct labor) Total cost of sales Gross Profit Year 1 2.780 1.043 51.723 277.831 1.008 75.768 31.809 192. ANNEXURE 13.546.183 108.439 667.768 1.384 467.886 Year 8 5.411 1.111.600 1.075 Year 9 5.172.049 233.088.475 992.200 126.000 264.000 24.848.449.760 2.583.952 Year 5 3.954 1.090 2.175 42.554 192.101 23.923 514.536 2.400 75.880 1.111.063 14.260 818.000 240.018.747 75.652 19.386.722 192.000 828.571 18.389.036 SMEDA Services / Information related to PM’s Youth Business Loan are FREE OF COST 12 .000 910.768 351.571 19.363 1.571 26.641 428.232 914.563 20.066 885.760 1.534.011 725.231 1.782 21.317.663 752.011 159.182 Year 10 6.950 8.623.982 811.899 10.446.800 910.888 2.400 13.000 Year 2 2.630 3.263.807 Tax NET PROFIT/(LOSS) AFTER TAX 207.468 7.771 1.800 1.045 386.820 32.768 28.782 641.209 1.269 701.028.400 29.12 Million) 13.536 633.972 172.950 8.057 6.211 5.286 787.391 1.807 Earnings Before Interest & Taxes 291.077 2.263.138 17.049 992.188 1.1.700.585 2.838 863.699 2.944 15.174 806.807 Interest expense on long term debt (Project Loan) Interest expense on long term debt (Working Capital Loan) Subtotal Earnings Before Tax 57.591 28.522 38.951 207.882 1.020.546.194.858 352.699 1.571 21.881 26.794.606.870.022.380.000 480.051.959 701.349 425.040 14.138 885.000 1.815 565.569 189.650 89.111.000 1.348 610.498 75.354 1.391 282.000 110.001.768 38.160 Year 4 3.768 3.692 702.870.000 26.405.306 2.441 46.571 23.079 428.950 8.405.949 984.845 3.000 528.384 35.259 175.461 51.241.950 8.057.841.520 151.295 305.440 31.591.241.133.800 290.128 52.442 Year 7 4.946 1.337 2.066 212.845 2.057.481 2.556.972 67.038 53.391 1.237 193.171 General administration & selling expenses Administration expense Building rental expense Electricity expense Water expense Gas expense Promotional expense Depreciation expense Amortization of pre-operating costs Miscellaneous expense 1 Subtotal Operating Income 120.846 935.070 83.400 Year 3 3.921 291.079 132.446 25.475 39.831 257.403 15.128 26.602 17.192 1.692 46.443 2.473 35.200 580.768 35.259 918.230 70.700.880 2.628.947 Year 6 4.837 57.933 725.800 1.769 23.630 2.360 717.867 76.259 229.326 208.237 787.720 75.241.517 21.764 34.352 1.958 1.800 828.991 23.385 252.261 773.280 1.768 42.907 56.498.277.101 46.505 871.950 8.891.Pre-feasibility Study Day Care Center (Rs.187.006.880 319.174.000 12.989 1.131.090 1.590 192.111.

500 428.1.780 2.284 34.200 5.628.996 376.955 35.762 346.394 13 .148 3.858 760.741 2.269.123.511 319.904 953.525 4.614 1.400 964.2 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 Current assets Cash & Bank Pre-paid building rent Total Current Assets 108.466 619.970 8.327 108.461 4.855 1.875 514.741.674 386.571 124.345.060 241.772.385 6.988 835.092 6.000 348.385 1.217 899.284 1.175 - 112.289 1.250 406.073 717.000 227.227 503.571 8.431 1.050 202.227.568.206.468.713 1.770 1.571 2.142 2.305.244 348.951 1.071.385 7.175 5.500 732.370 314.096 1.537.229 671.855 42.330.546 290.243 8.385 4.692 3.358 6.000 27.500 452.339.100 176.150 151.922.317 425.384 2.491 2.385 5.326.880.000 656.394 Liabilities & Shareholders' Equity Long term debt (Project Loan) Long term debt (Working Capital Loan) Total Long Term Liabilities 697.929 279.011.338.339.867 2.218.231.600 16.244.750 316.531.070 203.996 240.385 559.568.302 Intangible assets Pre-operation costs Total Intangible Assets TOTAL ASSETS 42.330.866 112.000 361.000 504.Pre-feasibility Study Day Care Center (Rs.973 6.011.000 640.450.952 56.385 112.12 Million) 13.206.158 599.243 112.965 17.716.157.128 319.092 Fixed assets Machinery & equipment Furniture & fixtures Office equipment Total Fixed Assets 252.230 112.375 401.400 11.142 17.096 1.252 3.327 363.358 - 112.759 17.394 7.607 335.790 5.340 112.242 481.087 240.281.358 7.184.466 697.837.385 1.131.502 445.573 1.839 269.861 156.244.500 580.458.340 3.009 7.570.806.446.851 SMEDA Services / Information related to PM’s Youth Business Loan are FREE OF COST - 112.851 34.780.140 4.979 25.645 674.532 645.059.200 532.143 466.645 264.043.500 271.175 2.385 3.093.206.907 5.866 4.295 3.059.975 567.716 952.946 1.456 467.336 4.380 565.287 6.755 5.370 314.184.184.123.806.385 2.713.196 2.230 200.810.960 26.755 Assets Shareholders' equity Paid-up capital Retained earnings Total Equity TOTAL CAPITAL AND LIABILITIES 112.169.522 1.800 22.772.356 1.713 25.979 112.385 1.570.513 1.145.541 112.951 44.339.278 181.175 6.385 207.386 351.440 1.394 1.541 3.145 536.910 3.759 112.442 777.450.

441) (34.571 (29.674) (106.022.128 75.855 717.571 (35.163.950 8.609 641.096 112.712 - (774.965 561.222 610.3 Cash Flow Statement Cash Flow Statement Operating activities Net profit Add: depreciation expense amortization of pre-operating costs Deferred income tax Pre-paid building rent Cash provided by operations Financing activities Project Loan .571 (24.1.Pre-feasibility Study Day Care Center (Rs.775) (121.000) 267.128 75.369) (44.341) (124.768 (38.891.446) 1.178.517) 961.140 879.652) 871.571 (26.768 (46.123.043 192.649 297.178.944) 693.649 (77.893) - - - - - (774.321) (83.163.830) (40.950 8.910) (131.769) 1.983) (154.869) (37.038 75.571 (31.643 794.505 - Year 10 1.481 914.996 267.644) (90.712 14 .376) (51.400) 410.040) 665.952) (56.712) 716.230) 697.950 8.615 818.950 8.principal repayment Additions to Project Loan Additions to Working Capital 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 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 (240.880) (112.419 1.183 192.901 543.855) - - - - (1.385 1.965) (167.740) (98.101 75.159 811.principal repayment Working Capital Loan .230 192.533) (47.650 192.768 565.278) (181.907 1.473 75.060.370 314.133.036 192.851 - Year 8 Year 9 1.950 8.000) (240.505 1.516) (115.000) 207.768 (42.649 352.305) (142.875 SMEDA Services / Information related to PM’s Youth Business Loan are FREE OF COST (453.138) 867.893) - - - - - 108.855) - - - - (1.768 (51.891.12 Million) 13.

org.pk • Government of Balochistan.pakistan.punjab.nbp. Marketing • Ads & P.com.1.pk • Government of Sindh.pk • Government of Khyber Pakhtunkhwa. www.fwbl.12 Million) 13. www.gov.gov. 13.pk • Government of Azad Jammu & Kashmir.pk • The First Women Bank Limited (FWBL). http://www. www. www.gov.moptt • Government of Punjab.gov. www.5 Useful Links • Prime Minister’s Office.gov. Also. Training & Standards in Higher Education. www.khyberpakhtunkhwa.balochistan. Promotion: Business promotion and dissemination through banners.Pre-feasibility Study Day Care Center (Rs.pk • Government of Pakistan. Product brochures from good quality service providers.pk • Ministry of Industries & Production.gilgitbaltistan.pmo. www.pk • Trade Development Authority of Pakistan (TDAP).O. www.pk • Ministry of Education. www.moip.pk SMEDA Services / Information related to PM’s Youth Business Loan are FREE OF COST 15 .tdap.gov.secp.pk • The National Bank of Pakistan (NBP). and launch events is highly recommended.gov.gov.smeda.pk • Small and Medium Enterprise Development Authority.com.4 Useful Project Management Tips Human Resources • Adequacy & Competencies: Skilled and experienced staff should be considered an investment even to the extent of offering share in business profit.pk • Securities & Exchange Commission of Pakistan (SECP).sindh.pk • Government of Gilgit Baltistan. www. • Performance Based Remuneration: Attempt to manage human resource cost should be focused through performance measurement and performance based compensation.gov.gov. have facebook page which is updated regularly.ajk. www.S. www. www.gov. www.

www.edu.org.1.pk • Montessori Education Pakistan.pk • All Pakistan Private Schools Welfare Association (APPSWA).fpcci.12 Million) • Federation of Pakistan Chambers and Commerce and Industries (FPCCI).appswa. www.pk • State Bank of Pakistan (SBP).org/ SMEDA Services / Information related to PM’s Youth Business Loan are FREE OF COST 16 .pk • Pakistan Montessori Association.Pre-feasibility Study Day Care Center (Rs.montesoori.com. www.sbp. www.pakistanmontessoriassociation.com. www.

1. KEY ASSUMPTIONS Particular Assumptions Sales Price Growth Rate 10 % per year Capacity Utilization Growth Rate 5 % per year Increase in utilities (Electricity/Water/Gas) 10 % per year Debt / Equity Ratio 90 : 10 Depreciation Rate Machinery & Furniture 10 % per year Office Equipment 20 % per year Loan Period 8 Years inclusive of 1 year grace period Loan installments Monthly Enrolment Capacity 30 Enrolment Capacity Year 1 23 Financial Charges (Loan Rate) 8 % per year SMEDA Services / Information related to PM’s Youth Business Loan are FREE OF COST 17 .12 Million) 14.Pre-feasibility Study Day Care Center (Rs.