2|Pa ge Feasibility Report

Table of Contents
LETTER OF ACKNOWLADGEMENT........................................................................................5
INTRODUCTION................................................................................................................................6
Vision............................................................................................................................................6
Mission.........................................................................................................................................6

SWOT ANALYSIS...............................................................................................................................7
STRENGTHS..................................................................................................................................7
WEAKNESSES................................................................................................................................7
OPPORTUNITIES...........................................................................................................................7
THREATS.......................................................................................................................................8
Financial Analysis.............................................................................................................................9
Startup..........................................................................................................................................9
Key Assumptions........................................................................................................................11
JEWELS OF JOY INCOME STATEMET 6 YEARS FORCASTED........................................................13
JEWELS OF JOY Cash flow Statement 6 YEARS FORCASTED......................................................15
JEWELS OF JOY BALANCE SHEET 6 YEARS FORCASTED..............................................................17
Costing........................................................................................................................................19
Common Sizing...........................................................................................................................22
Weighted Average Cost of Capital.............................................................................................25
Net Present Value......................................................................................................................25
IRR..............................................................................................................................................26
PI.................................................................................................................................................26
Recommendations and Conclusion...............................................................................................27

3|Page Feasibility Report

 LETTER OF ACKNOWLADGEMENT

First and foremost, we would like to thank Allah Almighty for everything.

Secondly, our deepest gratitude towards, Mr. Abdus Salam, our respected faculty for granting us
the the opportunity to do this project in PAF-KIET and providing us with all support and
leadership, which helped us to complete this project duly.

We are really thankful to him for presenting such excellent support and guidance, despite having
busy schedule.

Lastly we are thankful to each of the group members for contributing in this project. The
successful completion of this project was not possible without their coordination and support
1.0 Top Summary

Jewels of Joy (JoJ) is another business. We will offer a wide selection of Jewels tones in a variety of designs, tones and sizes.
Our jewelry will include wrist straps, pieces of jewelry, studs and bracelets. All pieces will be edited and made by the owner.
JoJ will sell a variety of prices and will provide support for customer performance pieces when standing or shopping in a mall.
All business deals will be held at this mall. After working for about eight months the landlord intends to hire a vendor who
will manage customer communications and other advertising.

The purpose of this marketing strategy is to create a framework and visionary organization and use this arrangement as a
guide for business and development. This marketing strategy will also be used to refine various parts of the organization to
create a logical order of customer loyalty and productivity.

The Pakistani commercial industry contains about 1500 claims in popular stores with an annual revenue of about PKR 1500
Million. The jewelry industry is deeply divided into ten precious chains that directly bring in 50% of revenue.

Jewels of happiness will enter the single most important market, ladies. We will focus on our efforts to promote professional
women, such as people who like to fill in when they go out for fun. We will provide these clients with a combination of
recommendations and a combination of different clothing styles and events that demonstrate our understanding of a
customer-focused and caring system.

In this industry the patterns are self-supporting. Popular treasures and novels; they are sensible but do not go well with
business attire and are both casual and casual events. Additional Jewels and can print any girl's dress.

1.1 Business Objectives

The main objectives of the Explored Jewels entertainment industry are as follows:

• Creating an object-oriented store aims to transcend customer thinking with program style, quality and customer care.

• Creating an inspiring unit that supplies Jewels tones and restores Jewels to address the problems of a working and active
woman.

• Increase sales by 5% annually.

• Introduce at least three new programs each month.

1.2 Statement of Employment

Joy mission prices for the manufacture, manufacture and sale of high-quality Jewels tones set mainly near the Jewels tone.
Jewels of Happiness will offer the best level of customer service and customized suggestions for each client. We are here to
reach and retain clients with our unique mix of systems, quality, and customer support and style suggestions.

1.3 Guiding Principles

1. Passion - We will always have, and will always show, our love for using Jewels tones as part of a perfect outfit that fits a
person’s right combination, his or her outfit, character and event.

2. Happiness - By constantly expressing our feelings of happiness and prosperity with our 'endless light' and pleasant
conversations our joy will be conveyed to our customers.

3. Impartiality - Be reasonable to all; to provide the best services and adaptability at the right cost, consider and be
committed to the needs of the customers the most, and consider all strategic options within and outside the Local Heritage.

1.4 Strategies for Success

Winning a valuable business, The value of happiness should:

• Display different sizes, tones and applications tailored to our customers' needs.

• Provide clients with excellent customer service.

• Provide suggestions for appropriate style plans to our customers.

• Continue to research our stocks and deals and adjust our stock levels if necessary.

• Provide full fulfillment for our customers and representatives. Both are very important to us and we will organize customer
care aimed at managing protests, strengthening staff and customer engagement, managing supplier accounts, and
anticipating potential conflicts.

• Create visual, open and inviting stores to position us as the best options for our items within the store.

2.0 Company Description

Jewels of Happiness is a newly established business. We will provide pre-made and special decorations made by the
homeowner. All of our pieces are made for a trained and lovable woman.

Long work will have the longest stores on Monday - Saturday from 12:00 pm to 12:00 am and Sunday from 9:00 am to 9:00
pm.

2.1 Ownership

All four are equally associated with the Jewels of Joy business. We also set priorities and when we will share the profits.

2.2 Legal Form

The points of happiness are grouped together as the unique, personal and creative identities of the four of us. Prices of
Happiness are registered under the SECP rules of Pakistan.
2.3 Summary

The cost of setting up a store and setting up a full-time job is 25000. Start thinking it will cost about 1375000.
Initial costs will be incurred through the proprietary business.

2.4 Location and Resources

Street Shop Corner Main Tariq 47 Sq Ft Ground 500, Karachi. All items will be stored in the owner's residence. A large amount
will be made with home ownership and interest on the store.

3.0 Products

Jewels of Happiness will clearly convey the values made for a trained and committed woman. Our selection will go with
different tones, sizes and styles to meet the special needs of the average woman.

Managers will rely on customer inclusion and business numbers to discard or introduce specific sizes, shades and styles.

3.1 Product Description

Our Jewels tone store will offer handmade jewelry of various styles and price ranges. Each piece of Jewels tone will go into
systems that emphasize and discover the environment around the Jewels tone. Prices will be considered for easily accessible,
commercial and legal events. We will offer Jewels tones including accessories, rings, wrist straps, and studs.

Clients can purchase pre-decoration or request a red piece designed for them locally.

3.2 Competitive Comparison

Perhaps the most notable opponents found in the jewelry store industry are the Corner Main Tariq Road Shop 47 Sq Ft
Ground 500, Karachi.

• Hanif Jewelers - This is a supermarket that sells real silver jewelry, Jewels tones; for young and old alike. Medium costs
range from PKR100K to PKR200K.

• ARY-Collections - Has a small store of straight silver jewelry, a few pearls and precious stones. The seller here has not
learned much about pricing. Medium costs range from PKR80K to PKR 150K, but they are ready for editing.

• Almas - This supermarket has 27 silver coins and 30K RK studs. The range of gem from PKR50K to PKR100K and contains
sapphire and rubies.

• Damascus - This supermarket is Indian and delivers Indian jewelry, for example, gold chains, watches, rings, Jewels tones
and bracelets. Average prices range from PKR200K to PKR500K.

Afzal Jewelers - This is a private jewelry store from PKR20K to PKR 80K.

Unless we have a lot of competitors in this area, we will differentiate ourselves by focusing only on the essentials, providing
modified pieces, providing the dress code and jewelry style and setting the right costs.
3.3 Product Testing
Production materials will be exported, for example, to Iran, Uganda and Kenya. Business owners contact these nations by
purchasing precious metals and commodities at a reduced price, but in addition they offer credit studies and installment
flexibility. This provides the flexibility of the owners day to meet financial needs. Conditional applications of small size and
weight will be airlifted; however, larger and heavier applications will be submitted by LCL (Under Container Container). All
items and equipment will be stored in the owners' home. While special artwork will be done nearby while the client is
standing, a general specification of pre-planned plans will be made in the home of the owners.
3.4 Asset Management

For proper operation in the store around the PKR1500K in stock is required. This stock will be placed in the owner's home.
The property owner will use the containers to store and coordinate the decorative goods. Valuable items will be stored in the
store. Since this is a private business with a restricted stock, all shares will be viewed on the accounting page.

3.5 Housing Repair and Completion

As jewelry and decoration will be small things a stockroom is not needed in business. All feeds will be transferred to the
owner's basement, important values will be stored in the store.

3.6 Future Products / Services

In a simple way, decorating a growing business is always the same. As patterns and styles change from year to year, as well as
the preparation time, it is important to maintain the flexibility of our product delivery. As all prices are set and developed by
the business owner, product delivery will change rapidly with changing styles and patterns.

As the business grows we can add benefits that add to our decorating, for example, cleaning and caring for things like
management and repair. However, focusing on our content will always be an important decoration.

4.0 Market Analysis

The jewelry store looks great on Karachi women. Women at work, such as girls ready for girls at night (e.g., events, parties,
etc.) focus more on Jewele store prices. We have selected this district as it is located at Corner Main Tariq Road Shop 47 Sq Ft
Ground 500, Karachi.

. In addition, Karachi fills up as one of the most popular and crowded places.

Despite the world's turmoil and debt problems, people are actually hungry for sweets. Women can agree on how easy it can
be to change their look with embellishment without the cost of buying a completely different outfit.

Industry Analysis

This investigation is based on Standard Industry Code ("SIC") 5944: Retail - Jewele Stores. Jewels are regularly offered at the
wedding stock (commitment, wedding rings, and souvenir rings - about 35 percent of the market); design Jewels (rings,
wrists, studs, pins, gold chains); and watches, silver flatware, and other gift items. Free Jewels and Jewels represent the
largest portion of jewelry store deals (46 percent); gold prices by 11 percent; Jewels tones (rubies, sapphires, emeralds, etc.)
9 percent; and looks at 4 percent. (Preliminary Industrial Research Report, 2010)
Sales costs are high for jewelers, who wish to produce a high-quality image, because space for good deals, goods, and
expensive deals is expensive.
According to data from First Industry Research, decorating deals are available from time to time, with 30% of revenue and
profits earned in the last quarter: 25 percent of annual deals are significant in November. Product inflation is high, often
exceeding 40% of annual deals, and stock exchanges must be strong to prevent abuse and exploitation. Acceptable records
are the highest for organizations that offer their Visa.

Debt is a major concern for all goldsmiths, because the availability of credit is the basis for selling something very expensive.
Revenue performance is generally less than a normal credit agreement. About 30% of chargers work on charging cards. Some
gem dealers increase their reach by purchasing a high-profile reputation from reputable customers. Large chains often offer a
private Mastercard to an outsider, who does not consider themselves dangerous. Many small retailers stay away from risk by
looking at foreign consent cards. (Preliminary Research Industry Report, 2010)

4.2 Market Size

Annual revenue in jewelry stores is approximately PKR 1500 Million. There are about a dozen jewelry stores. The business is
largely divided into 30 chains representing the largest share of revenue (Preliminary Industrial Survey, 2010).

4.2.1 Industry Participants

Key members include Hanif Jewells, ARY, Almas, Damascus. Large jewelry chains do not represent 50% of the business's
income (First Industrial Survey, 2010).

4.2.2 Key Competitors

The jewelry store controversy follows as follows:

Other competitors:

• Hanie Jewelers - This organization has many stores in the country. It currently sells genuine silver jewelry, precious stones -
youthful and old styles.

• ARY - Contains a list of authentic silver shops, pearls and a few precious stones. The seller was not fully trained for the test

• Almas-This also has chain stores and organizations and local retailers.

• Damascus - This store is big and owned and offers a variety of styles in gold chains, watches, belly rings, Jewels tones and
bracelets

• Afzal - This is an online store that sells only jewelry.

Aberrant Competition:

• Local stores - Although they sell at the neighborhood level, they have a few applications for prominence and can provide a
lot of contention from the past to the point that they will be products later. Other than that, the organization is very focused
on piercing, so they are not quick opponents.

4.2.3 Market Components

The Westfield Montgomery district includes about 500000 people earning a typical family income of about PKR500000K. The
girls represent 53.7% shown in the graph below.

4.3 Market Assessment

We will sell our decoration online through outdoor shopping areas, for example, Daraz. Most of the links were in programs
and genres. Unless this ad is inconsistent and is targeted at a low-maintenance facility, deals will cost about 30% of our
recorded sales items.

Marketing Strategy

We are looking for ladies in the Metro in particular. This is a consistent network and there is no doubt that the network is
focused on snazzy stores. In addition, since ladies are the final customers of decorations, it is common for our Heritage Store
to burn its advertising products focused on this huge market.

4.3.1 Market Needs

The jewelry we will market will solve the problems of women who hope to weave their clothes with precious stones.
Decorating will make sense in both formal and informal occasions.

4.3.2 Market Trends

Perhaps the most popular Jewels tone is jewelry. Jewels tones are made in a variety of designs, tones, and styles by design,
containing at least some of the most beautiful Jewels tones as a contact point. Although different types of Jewels tones are
more common, there are a variety of Jewels tones that adorn Jewels tones every year. One year can be considered incredibly
popular to wear ruby studs and the next year could be foreign rubies.

• The most revered style pattern is built between stones, precious stones to discard lumps. Tacori is at a high level of style.
These angels are flexible and can range from day to night, from pants and comfortable dance pads, to an attractive black
dress.

• Amethist is one of the most visible values, especially in the fall. She is an amazing helper in any ring or accessory.
Considered a Jewels tone, amethyst penetrates the mysteries from lavender to the rare, deep purple.

• Another popular Jewels tone is the moonstone, a beautiful, clear stone with the same colors, blue, pink and white.
Moonstone decorations continue to be very popular.

• Rutilated Quartz is produced using needles called rutile mineral embedded in quartz rocks. Renewable Quartz is known to
reduce grief. This type of Jewels tone is commonly found in a wide variety of Jewels tones ranging from string boxes to arm
rings.
• Chandelier circles are known for their continuity. These studios are an exciting program, performed by Indians and bids for
girls all over the world. Anyone can feel absolutely glorious when wearing this type of jewelry.

• Large, attractive, and bright ornaments are among the most precious patterns. Precious black ornaments are popular with
many people today.
4.3.3 Market Growth

Heritage has become one of the fastest growing areas. In today's world many Jewels tones are still given to ladies, and it is
unlikely that this trend will soon change. Besides, as the interest in this decoration grows with the ladies, it seems that the
men are far behind in finding interest in such things.

4.4 Suspension

We will prioritize our values through negotiation strategies. We will be known for the high quality, but especially for our
managers. We will be taught how to set up streams and will provide guidance on how to highlight bright clothes with vivid
decorative pieces. Our customers will be confident that they can contact us with price-related questions and be confident
that we will provide a voice of wisdom.

5.0 Strategy and Implementation

The jewelry store will provide women with the best jewelry. Some gem retailers have returned to this market by not focusing
on bulk supply, sizes and techniques. We expect to use our technology, product delivery and marketing strategies to build
our clients while driving deals and profits. The same sections learn about different programs that will support this effort.

SWOT analysis

The SWOT investigation gives us an opportunity to analyze the internal aspects and errors that Heritage Store has to deal
with. Similarly, it allows us to look at the open doors presented in the Jewelry Store and the potential risks.

5.1.1 Power

• Strong collaboration with credit providers who provide credit, flexibility, and responsiveness to special needs.

• Good and educated staff, who provide customary customer support. Price distinguishes itself from competitors by offering
modified decorating programs while the client is standing.

• A good market place with an attractive, acceptable environment.

• Landowner reduces costs 1) by buying directly from Iran, Uganda, and Kenya and 2) by making more product.

5.1.2 Weaknesses

• Availability of additional operating costs.

• Business income doubled; Most of the revenue was received in the last quarter and 15% was purchased in December.

• Owners grow a line of sales experience.

5.1.3 Opportunities

• Raising higher market wages.

• Addition of other decorative items related to handling.

5.1.4 Threats

• Local and emerging competitors.

• Shoplifting.
• Sales associated with financial development.

5.2 Strategic Pyramid

Procedure: Be a decorative art coordinator
Tips: Create the attention of the managers of our design conference
Provide the most important level of design conference management
Applications: Display signs in our store that promote this free service
Create a slogan, which furthers this management
Create printed articles and worksheets for our customers
Instruct all employees with style plan levels
Tip: Draw potential buyers
Tips: Draw customers around our location in our store
Create a two-way conversation with potential customers
Programs: Improve links to attract potential buyers to our store (for example add-ons, recommendations for the most
effective way to add to their wardrobe, etc.)

Train employees in the most effective way to ask open-ended questions and to seek opportunities for constructive
conversation, rather than arguments.
Special Advertising Promotion (USP)
The jewelry store will provide our customers with custom style tips on local jewelry. We will showcase our extensive details
with Jewels tones, dress / decoration combinations and current style set patterns. We will give you an idea of the best way to
dress for special occasions and what decorations work best for a costume. If we do not have a solution to their problems we
will have the opportunity to plan and make that part stand still. We will be the one source that people go to when they need
advice on how to dress properly and how they can help you with decorating.
Competitive Competition
Our main limitation is that we focus too much on the sale of jewelry, while the various competitors are among this kind of
value. Our equitable management will include pieces for our customers according to their system requirements.
Marketing and Innovation Strategy
The Jewelry Store will be located in the center of the grid area at Corner Main Tariq Road Shop 47 Sq Ft Ground 500, Karachi.
In addition, it is open to customers successfully. Our store will be located in the middle of one of the halls later, with high
visibility.

Various procedures include:

• Large area
• Word of mouth
Statement of suspension

Because of our understanding and our involvement in the design process combined with our expertise in planning and
making decorative materials we are a full-fledged Jewels tone store that sells artificial Jewels tones to all clients.

5.5.2 Pricing Strategy

The Jewelry Store will use a powerful modeling model. All decorations will no doubt be categorized at a cost - however, our
testing strategy will look for some flexibility. In addition to the fees, our vendors will be allowed to offer a pre-determined
discount for access to their customers. This incentive will give the client an idea of the additional value and purchase of the
contract.
Since we use a store and not an online store, we should keep reasonable and reasonable costs. Few items will sell like low
PKR10K, but most items will be shown from PKR70K to PKR90K at a standard cost of PKR80K. There are a few pieces that will
sell for PKR250 to PKR500K.
5.5.3 Promotion and Marketing Strategy
Our key development and strategies will be informal.
5.5.4 Website

Because the business is in the front store there are no plans to build a site to start the business. We will build the site after six
months to a year which will be a convenient and unlisted place. The site will include our site, style articles and ads.

Marketing Strategy 5.6

Since the Jewelry Store is another business, we understand that we must show our Company value to customers in order to
find their business. Equally important, we need to sell the Company and its products.

We will move on to deals from customer-customer relationships. All agents will be prepared and recommended to assist
individual clients and communicate effectively. Depending on the customer profile, the basic social and structural details of
our products will help us in the following ways:

• Direct our efforts to promote greater success.

• Improving the delivery of additional party items.
• Train and build vendors to effectively support the client.
• Increasing the attention of our Heritage Store to an important customer service center.
• Future deals focus on continuous business development.

In all of that, we will continue to keep you up to date with the most popular style patterns to give our clients something new,
with outstanding embellishments.
5.6.2 Marketing Plans

Our business staff will be refined in our products and in line with the program style and strong customer commitment. They
will be paid according to the commissions on a small basic fee. Business employees will be empowered to contribute to our
values; however, they will have pre-set limits and their bonus rate will change depending on the marking level (when a large
discount drastically reduces their bonus rate).

5.7 Legal
The Jewelry Store will be used as an organization approved by the SECP Law of Pakistan. Deals will be recorded quarterly
through guidelines and guidelines. Business protection will be purchased through State Life Insurance.

5.8 Exit Strategy

While many organizations set aside the effort to build a customer base, the Jewelry Store is well positioned to be at the
highest level per hour in the region, which equates to a fast customer base. The business will grow as we continue to build a
strong customer base, as a result of which we can expect increased deals in the fourth quarter. We have financial assets that
do business for up to one year, which is a time that provides product and support. In the event that after the big Christmas
season the business is useless, we will not restructure our store money and sell the same number of items as possible. Any
items remaining after completion will be sold after a certain period on sites, for example, Daraz.

6.0 Organization and Management

6.1 Organizational structure

As a private company with one owner and non-essential representatives the Jewelry Store does not need a consecutive
design. The landlord will take care of all the important tasks and duties.

6.2 Management Team

Designed as a sole proprietorship, the Jewelry Store is wanted and operated by the four of us. With the first premium of
professionalism at a young age, its owners go to a visual communication school to acquire exchange skills technology. While
searching for our legends, he worked for a nearby construction company where we developed project skills.

Management Team Positions

Homeowners have great shows, deals and suspension experience but, we have no understanding in financial management.
We will fill this hole by hiring a low maintenance clerk to help dry our books and monitor them regularly.

6.4 Staff Program

In the first eight months we will have changed the number of jobs. We will be in fashion, be an agent, and handle all
unsolicited requests. After eight months, we will be welcoming you to a private center that will help with deals and
programs. We will not compensate for the first two years of operation. In the Third Year, the business owner will draw an
extension of the extended PKR50000 after some time to the PKR 200000.
Financial Analysis

Startup

Start Up funding:

Start Up Expenses To Fund PKR 375,000

Start Up Assets To Fund PKR 3,925,000
Total Funding Required: PKR 4,300,000

Assets
Non Cash Assets From Start Up PKR 1,075,000
(Fixed Assets)

Cash Requirements From Start Up PKR 3,225,000

Total Assets PKR 4,300,000

Liabilities And Capital

Liabilities
Long Term Liabilities
Bank Loan PKR 1,720,000
Current Liabilities
A/C Payables -
Other Current Liabilities -
Total Current Liabilities -
Total Liabilities PKR 1,720,000

Capital/Equity
Capital By Partners
Partner 1 PKR 645,000
Partner 2 PKR 645,000
Partner 3 PKR 645,000
Partner 4 PKR 645,000
Total Capital By Partners PKR 2,580,000
Total Capital & Equity PKR 4,300,000

Start Up Cost
Start Up Expenses
Private Limited Company Formation PKR 10,000
Cost
Mics. Expenses PKR 10,000
Prepaid Insurance PKR 25,000
Rent Paid In Advance PKR 200,000
Marketing Cost
Advertisements
SMS Marketing PKR 3,000
Brochures PKR 5,000
Visiting Cards PKR 2,000
Office Renovation PKR 25,000
Website Application PKR 25,000
Hosting + Social Media PKR 20,000
Marketing
Total PKR 80,000

Total Start Up Expenses PKR 325,000

Start Up Assets
Security Deposit 1 Month Rent PKR 200,000
Showroom Furniture + Lighting PKR 500,000
Security and CCTV Setup PKR 45,000
Showroom Equipment
AC PKR 60,000
Laptop PKR 50,000
Dispenser + Fridge PKR 20,000
Printer + Scanner + Copier PKR 20,000
Utilities & Internet Connection PKR 10,000
Generator PKR 40,000
Total PKR 200,000

Software - Accounting PKR 50,000

Jewelry Showcase Mannequin (20) PKR 80,000

Total Fixed Assets 1,075,000

Current Assets

Cash In Hand PKR 3,225,000

-
Less: Start Up Expense PKR 325,000
Total Start Up Assets PKR 3,925,000
 Key Assumptions

Items assumptions rate

Increase In Sales Jewelry

Bridal Sets 20% 0.2
Formal Sets 25% 0.25
Regular Sets 30% 0.3
-
Increase In Cost Jewelry
Bridal Sets 5% 0.05
Formal Sets 5% 0.05
Regular Sets 5% 0.05
-
Increase In Staff Salaries 10% 0.1
Increase In Utilities 10% 0.1
Increase In Showroom Rent 10% 0.1
Increase In Showroom 10% 0.1
Expenses
Decrease In Marketing Cost 25% 0.25
No Ending Inventory to be Held
Depreciation And Amortization
Tangible Assets
Jewelry Showcase Mannequin 16.66% SLM 16.66%
Security and CCTV Setup 33% RBM 0.33
Showroom Equipment 33% RBM 0.33
Showroom Furniture + Lighting 20% RBM 0.2
Intangible Assets Software 30% SLM 0.3
Start Up Cost 16.66% SLM 16.66%
Breakage And Losses 1% of Revenue 0.01

Loan Repayment Period 8

years
Lease Installment Monthly at the end of month 22603.26 per year PKR
271,239.12
Interest Rate Rd 6% 0.06
Rate Of Return On Equity 12% 0.12
Tax Rate 30% 0.3

Rent Monthly PKR

200,000.00
Security Deposit 1 month Rent
Preliminary Exp PKR 325,000

Increase in selling price per

Sets
Bridal Set (High Quality) 10% 0.1
Formal (Medium Quality) 10% 0.1
Regular ( Regular Quality ) 10% 0.1
 JEWELS OF JOY
INCOME STATEMET
6 YEARS
FORCASTED

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

Sales Revenue
Bridal Set Inventory
80 96 115 138 166 199
Formal Inventory
100 125 156 195 244 305
Regular Inventory
120 156 203 264 343 446
-
Selling Price/Unit
Bridal Set PKR 30,000 PKR 33,000 PKR 36,300 PKR 39,930 PKR 43,923 PKR 48,315
Formal PKR 20,000 PKR 22,000 PKR 24,200 PKR 26,620 PKR 29,282 PKR 32,210
Regular PKR 10,000 PKR 11,000 PKR 12,100 PKR 13,310 PKR 14,641 PKR 16,105
-
Cost/unit
Bridal Set PKR 15,000 PKR 15,750 PKR 16,538 PKR 17,364 PKR 18,233 PKR 19,144
Formal PKR 10,000 PKR 10,500 PKR 11,025 PKR 11,576 PKR 12,155 PKR 12,763
Regular PKR 5,000 PKR 5,250 PKR 5,513 PKR 5,788 PKR 6,078 PKR 6,381
Total Sales Revenue
5,600,000 7,634,000 10,416,890 14,228,190 19,453,164 26,623,340
Opening
- - - - - -
Purchases
2,800,000 3,643,500 4,745,711 6,187,419 8,075,078 10,549,105
(closing) - -
- - -

Less: COGS
2,800,000 3,643,500 4,745,711 6,187,419 8,075,078 10,549,105
Gross Profits
2,800,000 3,990,500 5,671,179 8,040,772 11,378,086 16,074,235
Less: Operating Expense
Rent Expense (Paid In
Advance) 2,200,000 2,640,000 2,904,000 3,194,400 3,513,840 3,865,224
Insurance Expense (Paid
In Advance) 25,000 25,000 25,000 25,000 25,000 25,000
Utilities Expenses
240,000 264,000 290,400 319,440 351,384 386,522
Salary And Wages
Expenses 900,000 990,000 1,089,000 1,197,900 1,317,690 1,449,459

13 | P a g e Feasibility Report
 Marketing Cost
80,000 60,000 40,000 40,000 40,000 40,000
Depreciation On
Jewelry Showcase 13,333 13,333 13,333 13,333 13,333 13,333
Mannequin @
16.66% SLM
Depreciation On
Security and CCTV 14,850 9,950 6,666 4,466 2,992 2,005
Setup @ 33%
Rbm
Depreciation
On Showroom 100,000 80,000 64,000 51,200 40,960 32,768
Furniture +
Lighting @ 20% Rbm
Depreciation
On Showroom 66,000 44,220 29,627 19,850 13,300 8,911
Equipment’s
@ 33% Rbm
Amortization Of Software 0
@ 20% Slm 10,000 10,000 10,000 10,000 10,000
Amortization Of Start Up
Cost @ 16.66% Slm 50,000 50,000 50,000 50,000 50,000 50,000

Breakage And Losses @

1% Of Sales 56,000 76,340 104,169 142,282 194,532 266,233

Office Expenses
60,000 66,000 72,600 79,860 87,846 96,631

Operating Expenses
3,815,183 4,328,842 4,698,795 5,147,731 5,660,877 6,236,086
Operating Profit (EBIT)
(1,015,183) (338,342) 972,383 2,893,040 5,717,209 9,838,149
Interest Cost
(98,501) (87,847) (76,536) (64,527) (51,777) (38,241)

Earning Before Tax

(1,113,684) (426,189) 895,847 2,828,513 5,665,432 9,799,908
Taxation @ 30%
- - 268,754 848,554 1,699,630 2,939,972
Net Profit
(1,113,684) (426,189) 627,093 1,979,959 3,965,803 6,859,936

14 | P a g e Feasibility Report
JEWELS OF JOY
Cash flow Statement 6
YEARS FORCASTED

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

Cash flows
From Operation
Earning Before
Tax And Interest/ (1,015,183) (338,342) 972,383 2,893,040 5,717,209 9,838,149
Operating Profit
Add:
Depreciation 194,183 147,502 113,626 88,849 70,585 57,017
Add:
Amortization 60,000 60,000 60,000 60,000 60,000 50,000

Taxation
(268,754) (848,554) (1,699,630) (2,939,972)
(Increase) / -25,000 - - - - -
Decrease In -
Prepaid Asset
Increase /
(Decrease) In
Current Liabilities
Net Cash flows -25,000 -761,000 -130,840 877,256 2,193,336 4,148,165 7,005,193
From Operation

Cash flows
From Financing
Activities
Receipt Of Long 1,720,000
Term Debt
Repayment Of -271,239 -271,239 -271,239 -271,239 -271,239 -271,239
Long Term Debt
Including Interest
Expense

Owner’s Equity 2,580,000 - - -

Drawings - _ -62,709 -197,996 -396,580 -685,994
 Net Cash 4,300,000 -271,239 -271,239 -333,948 -469,235 -667,819 -957,233
flows From
Financing
Activities

Cash flows From

Investing
Activities
Start Up Cost - - - - -
(300,000) -
Security Deposit
(200,000)
Showroo
m (500,000)
Furniture
+
Lighting
Security and
CCTV Setup (45,000)
Showroom
Equipment (200,000)
Software -
Accounting (50,000)
Jewelr - - - - -
y Showcase (80,000) -
Mannequin
(20)

Net Cash - - - - -
flows From (1,375,000) -
Investing
Activities
Net Cash flows 2,900,000 -1,032,239 -402,079 543,307 1,724,101 3,480,345 6,047,961

Cash At - 2,900,000 1,867,761 1,465,682 2,008,989 3,733,090 7,213,436

The Beginning
Of The
JEWELS OF JOY BALANCE SHEET
6 YEARS FORCASTED

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

Assets
Fixed Assets 200,000 200,000 200,000 200,000 200,000 200,000 200,000
Security Deposit 500,000 400,000 320,000 256,000 204,800 163,840 131,072
Showroom 45,000 30,150 20,201 13,534 9,068 6,076 4,071
Furniture +
Lighting
Security and 200,000 134,000 89,780 60,153 40,302 27,003 18,092
CCTV Setup
Showroom 50,000 40,000 30,000 20,000 10,000 0 0
Equipment
Software - 80,000 66,667 53,334 40,002 26,669 13,336 0
Accounting
Jewelry 1,075,000 870,817 713,315 589,689 490,839 410,254 353,234
Showcase
Mannequin (20)
Total Fixed
Assets

Current Assets
Cash 2,900,000 1,867,761 1,465,682 2,008,989 3,733,090 7,213,436 13,261,396
Prepaid 25,000 25,000 25,000 25,000 25,000 25,000 25,000
Insurance

Total Current 2,925,000 1,892,761 1,490,682 2,033,989 3,758,090 7,238,436 13,286,396

Assets

Preliminary 300,000 250,000 200,000 150,000 100,000 50,000 0

Expense

Total Assets 4,300,000 3,013,578 2,403,997 2,773,678 4,348,929 7,698,689 13,639,631

Total Equity And

Liabilities
Equity
Capital 2,580,000 2,580,000 1,466,316 1,040,127 1,604,511 3,386,474 6,955,696
Add: Addition In 0 0 0 0 0 0 0
Capital
Total Capital 2,580,000 2,580,000 1,466,316 1,040,127 1,604,511 3,386,474 6,955,696
Less: Drawings 0 0 0 -62,709 -197,996 -396,580 -685,994
Add: Net Profit/ 0 (1,113,684) (426,189) 627,093 1,979,959 3,965,803 6,859,936
(Loss)
Total Equity 2,580,000 1,466,316 1,040,127 1,604,511 3,386,474 6,955,696 13,129,638

Liabilities
Fixed Liabilities 1,720,000 1,547,262 1,363,870 1,169,167 962,455 742,993 509,995
Loan From Bank

Current 0 0 0 0 0 0 0
Liabilities
Accounts 0 0 0 0 0 0 0
Payable
Interest Payable 0 0 0 0 0 0 0
Others 0 0 0 0 0 0 0
Total Current 1,720,000 1,547,262 1,363,870 1,169,167 962,455 742,993 509,995
Liabilities
Total Liabilities
Total Liabilities 4,300,000 3,013,578 2,403,997 2,773,678 4,348,929 7,698,689 13,639,633
And Equity
 Costing

We offer 3 types of Jewelry Sets

Following are the costs listings
Unit cost Number Total COGS Aim 100 % Profit on Sale
Bridal Set
15,000 80 1,200,000 30,000
Formal
10,000 100 1,000,000 20,000
Regular
5,000 120 600,000 10,000

Total
2,800,000 5,600,000

Salaries
Per month months total
Shop. Manager
25,000 12 300,000
Peon
12,000 12 144,000
Accountant
18,000 12 216,000
Security Guard
20,000 12 240,000
Total
900,000
 Depreciations And
Amortizations
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Depreciation Jewelry PKR 13,333 PKR 13,333 PKR 13,333 PKR 13,333 PKR 13,333 PKR 13,333
Showcase Mannequin
(20% SLM)
Depreciation On
Security and CCTV 14,850 9,950 6,666 4,466 2,992 2,005
Setup ( 33% RBM)
Depreciation On
Showroom equipment 66,000 44,220 29,627 19,850 13,300 8,911
(33% RBM)
Depreciation On
Showroom Furniture + 100,000 80,000 64,000 51,200 40,960 32,768
Lighting (20% SLM)
Total
194,183 147,502 113,626 88,849 70,585 57,017
Decrease In
Depreciation 46,681 33,876 24,777 18,265 13,568

Amortization On
Software 10,000 10,000 10,000 10,000 10,000 -
Amortization On Start
Up Cost 50,000 50,000 50,000 50,000 50,000 50,000
Total
60,000 60,000 60,000 60,000 60,000 50,000
Total Depreciation
and Amortization 254,183 207,502 173,626 148,850 130,585 107,017
Expense
 Amortization Table

(6%, 8-YearLoan Payable for 1,720,000;

Payable in 8 Yearly Installments of PKR
271,239)
a b Reduction in
Interes Payment Yearly Interest Unpaid Unpaid
t
Period Dat Payment Expense Balance Balance
e
1 Jan. 2021 PKR 1,720,000
1 Dec, 2021 PKR 271,239.0 PKR 98,501.00 PKR 172,738.00 PKR 1,547,262
2 Dec, 2022 PKR 271,239.0 PKR 87,847.00 PKR 183,392.00 PKR 1,363,870
3 Dec, 2023 PKR 271,239.0 PKR 76,536.00 PKR 194,703.00 PKR 1,169,167
4 Dec, 2024 PKR 271,239.0 PKR 64,527.00 PKR 206,712.00 PKR 962,455
5 Dec, 2025 PKR 271,239.0 PKR 51,777.00 PKR 219,462.00 PKR 742,993
6 Dec, 2026 PKR 271,239.0 PKR 38,241.00 PKR 232,998.00 PKR 509,995
7 Dec, 2027 PKR 271,239.0 PKR 23,871.00 PKR 247,368.00 PKR 262,627
8 Dec, 2028 PKR 271,239.0 PKR 8,613.00 PKR 262,626.00 PKR 1
 Common Sizing

Income
Stateme
nt
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

Revenue PKR PKR PKR PKR PKR PKR 26,623,340

5,600,000.00 7,634,000.00 10,416,890.00 14,228,190.35 19,453,163.62

Revenue 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Less: -50.00% -47.73% -45.56% -43.49% -41.51% -39.62%

COG
S
Gros 50.00% 52.27% 54.44% 56.51% 58.49% 60.38%
s
Profi
t

Operatin -68.13% -56.70% -45.11% -36.18% -29.10% -23.42%

g
Expenses
Operatin -18.13% -4.43% 9.33% 20.33% 29.39% 36.95%
g Profit

Interes -1.76% -1.15% -0.73% -0.45% -0.27% -0.14%

t
Expens
e
Profit -19.89% -5.58% 8.60% 19.88% 29.12% 36.81%
Before
Tax
Taxatio 0.00% 0.00% -2.58% -5.96% -8.74% -11.04%
n@
20%
Net Profit -19.89% -5.58% 6.02% 13.92% 20.39% 25.77%
 Balance Sheet
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Assets
Fixed Assets
Security Deposit 4.65% 6.64% 8.32% 7.21% 4.60% 2.60% 1.47%
Showroom Furniture 11.63% 13.27% 13.31% 9.23% 4.71% 2.13% 0.96%
+ Lighting
Security and CCTV 1.05% 1.00% 0.84% 0.49% 0.21% 0.08% 0.03%
Setup
Showroom Equipment 4.65% 4.45% 3.73% 2.17% 0.93% 0.35% 0.13%
Software - Accounting 1.16% 1.33% 1.25% 0.72% 0.23% 0.00% 0.00%
Jewelry Showcase 1.86% 2.21% 2.22% 1.44% 0.61% 0.17% 0.00%
Mannequin (20)
Total Fixed Assets 25.00% 28.90% 29.67% 21.26% 11.29% 5.33% 2.59%
Current Assets
Cash 67.44% 61.98% 60.97% 72.43% 85.84% 93.70% 97.23%
Prepaid Insurance 0.58% 0.83% 1.04% 0.90% 0.57% 0.32% 0.18%
Total Current Assets 68.02% 62.81% 62.01% 73.33% 86.41% 94.02% 97.41%

Preliminary Expense 6.98% 8.30% 8.32% 5.41% 2.30% 0.65% 0.00%

Total Assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Total Equity And

Liabilities
Equity
Capital 60.00% 85.61% 60.99% 37.50% 36.89% 43.99% 51.00%
Add: Addition In 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Capital
Total Capital 60.00% 85.61% 60.99% 37.50% 36.89% 43.99% 51.00%
Less: Drawings 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Add: Net Profit/ 0.00% -36.96% -17.73% 22.61% 45.53% 51.51% 50.29%
(Loss)
Total Equity 60.00% 48.66% 43.27% 57.85% 77.87% 90.35% 96.26%

Liabilities
Fixed Liabilities
Loan From Bank 40.00% 51.34% 56.73% 42.15% 22.13% 9.65% 3.74%

Current Liabilities
Accounts Payable 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Interest Payable 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Others 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Total Current 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Liabilities
Total Liabilities 40.00% 51.34% 56.73% 42.15% 22.13% 9.65% 3.74%

Total Liabilities And 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Equity
 Weighted Average Cost of Capital

Amount Ratio Rates WACC

Loan
1,720,000 0.40 0.06 0.02
Capital
2,580,000 0.60 0.12 0.07
Total equity
4,300,000 1 0.10

Net Present Value

Net Present Value Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

Operating Cash
Flow (4,300,000) (761,000) (130,840) 877,256 2,193,336 4,148,165 7,005,193

PV of inflows
(691,818) (108,132) 659,095 1,498,078 2,575,684 3,954,249

initial cash outflow

4,300,000

NPV
3,587,156
Accept
 Payback & Discounted Payback Period in years
Year Cash flow Cumulative Cash flow Discounted Cash Cumulative Discounted Cash flow
flow

- (4,300,000) (4,300,000) (4,300,000) (4,300,000)

1 (761,000) (5,061,000) (691,818) (4,991,818)

2 (130,840) (5,191,840) (108,132) (5,099,950)

3 877,25 (4,314,584) 659,095 (4,440,855)

6

4 2,193,336 (2,121,249) 1,498,078 (2,942,777)

5 4,148,165 2,026,916 2,575,684 (367,094)

6 3,954,249 3,587,156
Payback 4 years + 2121249/4148164 year

1
5.0
Period in s
Years 4.51

Discounted Payback Period In Years

IRR

Internal Rate Of
Return
Internal Rate Of 22.598
Return %
s
year

PI

Profitability Index
Profitability Index NPV/Initial Investment
0.834
 Recommendations and Conclusion

Income Statement: We can analyze from this statement that for the first two years the net profit
is negative which is mainly due to less sales however we can quickly se the recovery of loss from
year 3 and onwards.

Cash Flow Statement: By this statement we analyze net cash flow for this project, the result
shows negative cash position for year one and year two however from year 3 onwards the cash
position starts to result in positive with good amount.

Balance Sheet: The Total Equity Suffers hugely dude to the net losses in year 1 and year 2
however we are about to recover the amount and increase the equity by year 4. By the end of
year 5 there is an increase of 167% equity which is due to net profits. Furthermore Total assets
also increase by great numbers by the end of year 5.

Net Present Value: We see that Net present value is 3,587,156. The project is accepted as the
project is earning profit and it will result in a positive NPV from year 6.
Payback & Discounted Payback Period in Years: Payback period is 4.50 years which is slow
but by looking at the amount of return it is acceptable.
Internal Rate of Return: With an IRR of 22.5% it is safe to say the investment is a good
investment. 10.5% more a WACC.
Common sizing analysis:
Year 1 net project is -20% but gradually as sales increase in year 5 we see a net project of 20%
we can see the business in towards an increasing trend.
For balance sheet by keeping Total assets as a base we see a good amount of increase in total
current assets which is mainly due to Cash increase of 94 %.
Final Recommendation:
Highly recommend this project for investors who are not looking for immediate returns however
want a stable and constant growth.