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 Pre-Feasibility Study Prime Minister’s Small Business Loan Scheme 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 [email protected] REGIONAL OFFICE PUNJAB REGIONAL OFFICE SINDH REGIONAL OFFICE KPK REGIONAL OFFICE BALOCHISTAN 3 rd  Floor, Building No. 3, Aiwan-e-Iqbal Complex, Egerton Road Lahore, Tel: (042) 111-111-456 Fax: (042) 36304926-7 [email protected] 5 TH  Floor, Bahria Complex II, M.T. Khan Road, Karachi. Tel: (021) 111-111-456 Fax: (021) 5610572 [email protected]  Ground Floor State Life Building The Mall, Peshawar. Tel: (091) 9213046-47 Fax: (091) 286908 [email protected]  Bungalow No. 15-A Chaman Housing Scheme Airport Road, Quetta. Tel: (081) 831623, 831702 Fax: (081) 831922 [email protected]  September 2013
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Pre-Feasibility Study

Prime Minister’s Small Business Loan

Scheme

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

[email protected] 

REGIONAL OFFICEPUNJAB 

REGIONAL OFFICESINDH 

REGIONAL OFFICEKPK 

REGIONAL OFFICEBALOCHISTAN 

3rd  Floor, Building No. 3,

Aiwan-e-Iqbal Complex,

Egerton Road Lahore,

Tel: (042) 111-111-456Fax: (042) 36304926-7

[email protected] 

5TH Floor, Bahria

Complex II, M.T. Khan Road,

Karachi.Tel: (021) 111-111-456

Fax: (021) 5610572

[email protected]  

Ground Floor 

State Life Building

The Mall, Peshawar.Tel: (091) 9213046-47

Fax: (091) 286908

[email protected]  

Bungalow No. 15-A

Chaman Housing Scheme

Airport Road, Quetta.Tel: (081) 831623, 831702

Fax: (081) 831922

[email protected]  

September 2013

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Pre-feasibility Study Day Care Center 

Table of Contents

1  Disclaimer ............................................................................................................................... 1 2  Purpose of the Document ........................................................................................................ 2 3  Introduction to SMEDA .......................................................................................................... 2 4  Introduction to Scheme ........................................................................................................... 2 5  Executive Summary ................................................................................................................ 3 6  Brief Description of Project & Product .................................................................................. 3 7  Critical Factors in Decision Making ....................................................................................... 4 8  Installed & Operational Capacities ......................................................................................... 4 9  Geographical Potential for Investment ................................................................................... 4 10  Potential Target Markets & Cities .......................................................................................... 5 11  Project Cost Summary ............................................................................................................ 5 

11.1  Project Economics .......................................................................................................... 5 11.2  Project Financing ............................................................................................................ 6 11.3  Project Cost ..................................................................................................................... 6 11.4  Space Requirement ......................................................................................................... 6 11.5  Equipment Requirement ................................................................................................. 7 11.6  Furniture & Fixtures Requirement .................................................................................. 7 11.7  Human Resource Requirement ....................................................................................... 8 11.8  Revenue Generation ........................................................................................................ 8 11.9  Other Costs...................................................................................................................... 9 

12  Contacts – Suppliers, Experts / Consultants, Dev. Institutions............................................... 9 13  Annexure ............................................................................................................................... 10 

13.1  Income Statement.......................................................................................................... 10 13.2  Balance Sheet ................................................................................................................ 11 13.3  Statement of Cash Flow ................................................................................................ 12 13.4  Useful Project Management Tips.................................................................................. 13 13.5  Useful Links .................................................................................................................. 14 

14  Key Assumptions .................................................................................................................. 15 

September 2013

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11 DDIISSCCLL A AIIMMEERR 

This information memorandum is to introduce the subject matter and provide a general

idea and information on the said matter. Although, the material included in this

document is based on data/information gathered from various reliable sources;

however, it is based upon certain assumptions which may differ from case to case. The

information has been provided on as is where is basis without any warranties or 

assertions as to the correctness or soundness thereof. 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, 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. The contained information does not preclude

any further professional advice. The prospective user of this memorandum is

encouraged to carry out additional diligence and gather any information which isnecessary for making an informed decision, including taking professional advice from a

qualified consultant/technical expert before taking any decision to act upon the

information.

For more information on services offered by SMEDA, please contact our website:

www.smeda.org.pk  

September 2013

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Pre-feasibility Study Day Care Center 

22 PPUURRPPOOSSEE OOFF TTHHEE DDOOCCUUMMEENNTT 

The objective of the pre-feasibility study is primarily to facilitate potential entrepreneurs

in project identification for investment. 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, start-up, and

production, marketing, finance and business management.

The purpose of this document is to facilitate potential investors in Day Care Center by

providing them with a general understanding of the business with the intention of 

supporting potential investors in crucial investment decisions.

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; best practices developed by existing enterprises by

trial and error, and certain industrial norms that become a guiding source regarding

various aspects of business set-up and it’s successful management.

 Apart from carefully studying the whole document one must consider critical aspects

provided later on, which form basis of any Investment Decision.

33 IINNTTRROODDUUCCTTIIOONN TTOO SSMMEEDD A A 

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).

With a mission "to assist in employment generation and value addition to the nationalincome, through development of the SME sector, by helping increase the number, scale

and competitiveness of SMEs" , SMEDA has carried out ‘sectoral research’ to identify

policy, access to finance, business development services, strategic initiatives and

institutional collaboration and networking initiatives.

Preparation and dissemination of prefeasibility studies in key areas of investment has

been a successful hallmark of SME facilitation by SMEDA.

Concurrent to the prefeasibility studies, a broad spectrum of business development

services is also offered to the SMEs by SMEDA. 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.

44 IINNTTRROODDUUCCTTIIOONN TTOO SSCCHHEEMMEE 

Prime Minister’s ‘Small Business Loans Scheme’, for young entrepreneurs, with an

allocated budget of Rs. 5.0 Billion for the year 2013-14, is designed to provide

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Pre-feasibility Study Day Care Center 

subsidised financing at 8% mark-up per annum for one hundred thousand (100,000)

beneficiaries, through designated financial institutions, initially through National Bank of 

Pakistan (NBP) and First Women Bank Ltd. (FWBL).

Small business loans with tenure upto 7 years, and a debt : equity of 90 : 10 will be

disbursed to SME beneficiaries across Pakistan, covering; Punjab, Sindh, Khyber Pakhtunkhwah, Balochistan, Gilgit Baltistan, Azad Jammu & Kashmir and Federally

 Administered Tribal Areas (FATA).

55 EEXXEECCUUTTIIVVEE SSUUMMMM A ARRYY 

Day Care Center is proposed to be located in major cities as Islamabad, Lahore,

Karachi and Quetta etc. Life, today, is characterized by independent family systems,

need for improved living standards, quality education for children, etc resulting in

increased pressure on working women to efficiently manage both their professions and

domestic responsibilities. The demand for day care centers is on the rise, specifically byworking mothers, and the service is deemed as a profitable social entrepreneurship

opportunity.

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 through trained and

educated staff.

The project can be used for a maximum of 40 enrolments, however, keeping in view the

rationale and demand; calculations have been made on the assumption of 24

enrolments for the first year of operations.

Total cost estimate of the project is Rs. 1.42 Million with a fixed investment of Rs. 0.84

Million and a working capital of Rs. 0.58 Million.

Given the cost assumptions IRR and payback are 62% and 1.92 years, respectively.

The most critical considerations or factors for success of the project are:

•  Most Significant Consideration: Commercial area, accessible and secure area

•  Equally Important Factor: Admission Time

66 BBRRIIEEFF DDEESSCCRRIIPPTTIIOONN OOFF PPRROOJJEECCTT &&  PPRROODDUUCCTT 

•  Techniques: This proposed unit would be established with modern learning

techniques and extracurricular activities.

•  Location: The unit would be located in metropolitan cities of Pakistan i.e. Lahore,

Islamabad, Quetta, Peshawar, Karachi and smaller cities.

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•  Product: The Day Care Centre will offer a hygienic and efficiently managed care

facility for children.

•  Target Market: Working mothers; doctors, teachers, bankers, etc.

  Employment Generation: Direct employment to 6 people. Financial analysis showsthe unit shall be profitable from the very first year of operation.

77 CCRRIITTIICC A ALL FF A ACCTTOORRSS IINN DDEECCIISSIIOONN MM A AKKIINNGG 

• Center’s environment should ensure security and should be free from any apparent

hazard.

• The center should be preferably located in a commercial area.

• Frequent care provider – parent interactions should also be a regular feature of the

center’s day care system.

• The center should be started at least one week prior to the ending of winter 

vacations so that proper promotion and management of admissions are conducted.

• A well-trained/experienced care provider will ensure value added service delivery.

• It is recommended that the proposed project should be established in a rented

building to reduce the project cost.

88 IINNSSTT A ALLLLEEDD &&  OOPPEERR A ATTIIOONN A ALL CC A APP A ACCIITTIIEESS 

It is proposed that infants age of more than 6 months and up to 5 years age children

would be enrolled in the center. Initially day care center growth would be 60% in the firstyear, where 24 kids would be enrolled. However, this capacity may not be achieved in

the initial years of operations. 99 GGEEOOGGRR A APPHHIICC A ALL PPOOTTEENNTTII A ALL FFOORR IINNVVEESSTTMMEENNTT 

The fast paced life of the cities is significantly influencing the life style of its inhabitants.

Economic pressures are compelling both parents to work towards achieving and

sustaining quality life standards. This has further added to complexity and competition

of any Metropolitan city. As a result of these social changes, the trend of sending

children to Day Care Centers at a much earlier age is gaining rapid grounds. Major 

cities of Pakistan have great potential for this project, e.g, Karachi, Islamabad, Lahore,

Peshawar and Quetta.

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1100 PPOOTTEENNTTII A ALL TT A ARRGGEETT MM A ARRKKEETTSS &&  CCIITTIIEESS 

The Day Care Center has targeted the working women and the business community

having infants of age more than 6 months to children of age up to 5 years. The target

population of the working women consists of the women with pre-school going children.

The business community also has positive response since they too are very much

involved in their daily routines and therefore can be targeted as potential customers.

Keeping in view economic and social factors, it is recommended that the proposed

project may be established in major cities such as Islamabad, Lahore, Quetta, Karachi

and Peshawar etc. However the project may be open in other cities and towns after 

careful market analysis.

1111 PPRROOJJEECCTT CCOOSSTT SSUUMMMM A ARRYY 

 A detailed financial model has been developed to analyze the commercial viability of 

Day Care Center under the Prime Minister’s Small Business Loan Scheme. Variouscost and revenue related assumptions along with results of the analysis are outlined in

this section.

The projected Income Statement, Cash Flow Statement and Balance Sheet are

attached as appendix.

1111..11 PPr r oo j jeecctt EEccoonnoommiiccss 

The proposed intervention has the capacity of 40 enrolments however a target of 24

enrolments is assumed in Year 1 of Day Care Center. The following table shows

internal rates of return and payback period.

TTaabbllee 11:: PPr r oo j jeecctt EEccoonnoommiiccss 

Description Details

Internal Rate of Return (IRR) 62%

Payback Period (yrs) 1.92

Net Present Value (NPV) 4,224,856

Returns on the scheme and its profitability are highly dependent on the efficiency of 

location, staff, hygienic environment, safety, curricular & extracurricular activities. In

case Day Care Center is not very efficient, it will not be able to cover the potential and

recover payments.

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1111..22 PPr r oo j jeecctt FFiinnaanncciinngg 

Following table provides details of the equity required and variables related to bank

loan;

Table 2: Project FinancingDescription Details

Total Equity (10%) Rs.142,028

Bank Loan (90%) Rs.1,278,252

Markup to the Borrower 8%

Tenure of the Loan (Years) 7

1111..33 PPr r oo j jeecctt CCoosstt 

Following requirements have been identified for operations of the proposed business.

Table 3: Capital Investment for the Project Capital Investment Amount (Rs.)

Building/Infrastructure -

Office Equipment 5,000

Furniture & Fixtures 483,000

Machinery & Equipment 274,000

Pre Operating Cost 78,280

Total Capital Costs 840,280

Initial Working Capital 580,000

Total Project Cost 1,420,280

1111..44 SSppaaccee RReeqquuiir r eemmeenntt 

It is recommended that the proposed project should be established in a rented building,

preferably a one kanal (4,500 sq.ft.) house with two bedrooms and attached bath, one

drawing and dining rooms each, one kitchen and a reasonable front / back yard to

reduce project cost. In case a purpose built building is purchased, project cost will

increase. The rent for the building is assumed Rs. 40,000 per month.

Table 4: Space Requirement

Description Sq .ft Required

Building Covered Area 2,000

Play Area / Grounds 2,500

Total Bui lding Area 4,500

September 2013

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1111..55 EEqquuiippmmeenntt RReeqquuii r r eemmeenntt 

The basic requirements for a daycare center includes activity based equipments for 

outdoor activities (slides, merry-go-round, swings, etc.), equipments for indoor activities

(soft boards, white boards, books, etc.), kitchen equipment (microwave, refrigerator)

and entertainment and sleeping fixtures and equipment (T.V., DVD player), all of whichare readily available in the local market. Details of the equipment are given as below, for 

a sum total of Rs. 274,000 only:

Table 5: Equipment DetailEquipment Details Qty Cost/Uni

 Total Cost

Slide (Iron) 1 15,000 15,000

Merry-Go-Round 1 20,000 20,000Swings (Outdoor) (3 Seater) 2 30,000 60,000

Monkey Bar 2 10,000 20,000

Baby Eating Seat 2 8,000 16,000

Baby Rocker / Swing Chair 2 4,000 8,000

Sleeping Cot 3 10,000 30,000

Beds (Single + Mattress) 5 10,000 50,000

White Board 5 1,500 7,500

Soft Boards 5 1,500 7,500

Cooking Range / Burner Stove 1 3,000 3,000

Microwave 1 7,000 7,000

Refrigerator 1 25,000 25,000

Kitchen Utensils 1 5,000 5,000

Total Machinery & Equipment 274,000

1111..66 FFuur r nnii ttuur r ee && FFiixxttuur r eess RReeqquuiir r eemmeenntt 

Furniture & fixtures requirement for the project is detailed as under:

Table 6: Furniture & Fixture DetailDescription  Qty   Cost/Uni

 Total Cost 

Office Chairs 2 5,000 10,000

Office Table 1 10,000 60,000

Sofa Cum Bed 2 10,000 20,000

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Seating Chairs (Children) 24 2,000 48,000

Book Rack (Library) 2 5,000 10,000

Eating Table 2 15,000 30,000

Electric Wiring 1 5,000 5,000

Cupboards & Book Shelves 10 6,500 65,000

Carpet 2,000 30 60,000

Television 1 40,000 100,000

 Air Conditions (1.5 Window) 4 55,000 220,000

Total Furniture & Fixtures 483,000

1111..77 HHuummaann RReessoouur r ccee RReeqquuiir r eemmeenntt 

The manpower required for operating the Day Care Center is as follows:

Table 7: Human Resource Detail

Description  Qty  Salary  Total Monthly Salary 

Owner / Manager 1 20,000 20,000

Nannies 4 10,000 40,000

Guard 1 10,000 10,000

Total 6 75,000

It is highly recommended that the nannies should be qualified females of age range

from 18 to 30 to ensure the parents about their child’s proper care and safety. The

nannies should be at least matriculates and should go from a proper child care training

program before having the job responsibilities.

1111..88 RReevveennuuee GGeenneer r aatt iioonn 

It is proposed that infants of more than 6 months of age to children of 5 years of age be

enrolled in the center. The project would have a total capacity of 40 students. However,

keeping in view the market analysis, it is assumed the project capacity would be around

24 enrolments in year 1 of its operation.

Table 8: Revenue DetailFees / month (Rs./Unit)  First Year 

EnrolmentMonthly

Revenue (Rs) 

9,000 24 216,000

 Annual Revenue 2,592,000

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1111..99 OOtthheer r CCoossttss 

The primary overhead cost of the project would be utilities as electricity, gas & water 

and cost of fuel must be kept in mind for generator expenses.

Electricity Price Growth Rate 10%

Gas Price Growth Rate 10%

Water Price Growth Rate 10%

Salary Growth Rate 10%

Rent Growth Rate 10%

Student Fee Growth Rate 10%

Contacts – Suppliers, Experts / Consultants, Dev. Institutions

Below is the list of major suppliers of Children Toys for Day Care Center:

1. Babyland Toys1st Floor, Sheikh Innayat-Ullah Building,Liberty Market, Gulberg 3, Lahore PakistanTel: 042-35757468, Mob: 0336-4050607http://www.babyland.com.pk/  

2. Kaymu ToysArfa Software Technology Park 346-B

Ferozpur Road Lahore, Pakistan

http://www.kaymu.pk

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1122 A ANNNNEEXXUURREE 

1122..11 IInnccoommee SSttaatteemmeenntt 

Statement Summaries SM

Income Statement

Rs.

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9

Revenue 2,592,000 2,948,400 3,333,960 3,750,705 4,200,790 4,686,506 5,210,292 5,470,806 5,744,347  

Cost of goods sold - - - - - - - - -  

Gross Profit 2,592,000 2,948,400 3,333,960 3,750,705 4,200,790 4,686,506 5,210,292 5,470,806 5,744,347  

General administration & selling expenses

Administration expense 840,000 924,000 1,016,400 1,118,040 1,229,844 1,352,828 1,488,111 1,636,922 1,800,615  

Rental expense 480,000 528,000 580,800 638,880 702,768 773,045 850,349 935,384 1,028,923  

Utilities expense 480,000 528,000 580,800 638,880 702,768 773,045 850,349 935,384 1,028,923  

Travelling & Comm. expense (phone, fax, etc.) - - - - - - - - -  

Office vehicles running expense - - - - - - - - -  

Office expenses (stationary, etc.) - - - - - - - - -  

Promotional expense 51,840 58,968 66,679 75,014 84,016 93,730 104,206 109,416 114,887  

Insurance expense - - - - - - - - -  

Professional fees (legal, audit, etc.) - - - - - - - - -  

Depreciation expense 76,200 76,200 76,200 76,200 76,200 76,200 76,200 76,200 76,200  

Amortization expense 15,656 15,656 15,656 15,656 15,656 - - - -  

Property tax expense - - - - - - - - -  

Miscellaneous expense 60,000 66,000 72,600 79,860 87,846 96,631 106,294 116,923 128,615  

Subtotal 2,003,696 2,196,824 2,409,135 2,642,530 2,899,098 3,165,479 3,475,509 3,810,230 4,178,162  

Operating Income 588,304 751,576 924,825 1,108,175 1,301,692 1,521,027 1,734,783 1,660,577 1,566,185  

Other income - - - - - - - - -  

Gain / (loss) on sale of assets - - - - - - - - -  Earnings Before Interest & Taxes 588,304 751,576 924,825 1,108,175 1,301,692 1,521,027 1,734,783 1,660,577 1,566,185  

Interest expense 98,065 86,343 73,656 59,922 45,057 28,966 11,549 - -  

Earnings Before Tax 490,239 665,233 851,169 1,048,253 1,256,635 1,492,061 1,723,234 1,660,577 1,566,185  

Tax - - - - 123,128 233,288 261,235 291,612 324,542  

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1122..22 BBaallaannccee SShheeeett 

Statement Summaries SMEDA

Balance SheetRs. in actuals

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 540,000 975,901 1,547,358 2,267,683 3,141,428 4,177,026 5,375,233 6,740,514 8,283,800 9,750,794 11,225,860 

Pre-paid building rent 40,000 44,000 48,400 53,240 58,564 64,420 70,862 77,949 85,744 94,318 - 

Total Current Assets 580,000 1,019,901 1,595,758 2,320,923 3,199,992 4,241,446 5,446,096 6,818,463 8,369,544 9,845,112 11,225,860 

Fixed assets

Machinery & equipment 274,000 246,600 219,200 191,800 164,400 137,000 109,600 82,200 54,800 27,400 - Furniture & fixtures 483,000 434,700 386,400 338,100 289,800 241,500 193,200 144,900 96,600 48,300 - 

Office vehicles - - - - - - - - - - - 

Educational Tools 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 - 

Total Fixed Assets 762,000 685,800 609,600 533,400 457,200 381,000 304,800 228,600 152,400 76,200 - 

 Intan gibl e assets

Pre-operation costs 78,280 62,624 46,968 31,312 15,656 - - - - - - 

Legal, licensing, & training costs - - - - - - - - - - - 

Total Intangible Assets 78,280 62,624 46,968 31,312 15,656 - - - - - - 

TOTAL ASSETS 1,420,280 1,768,325 2,252,326 2,885,635 3,672,848 4,622,446 5,750,896 7,047,063 8,521,944 9,921,312 11,225,860 

Liabilities & S hareholders' Equity

Current liabilities

Total Current Liabilities - - - - - - - - - - - 

Other liabilities

Long term debt 1,278,252 1,136,058 982,143 815,540 635,204 440,002 228,710 - - - - 

Total Long Term Liabilities 1,278,252 1,136,058 982,143 815,540 635,204 440,002 228,710 - - - - 

Shareholders' equity

Paid-up capital 142,028 142,028 142,028 142,028 142,028 142,028 142,028 142,028 142,028 142,028 142,028 Retained earnings - 490,239 1,128,156 1,928,067 2,895,616 4,040,416 5,380,158 6,905,035 8,379,916 9,779,284 11,083,832 

Total Equity 142,028 632,267 1,270,184 2,070,095 3,037,644 4,182,444 5,522,186 7,047,063 8,521,944 9,921,312 11,225,860 

TOTAL CAPITAL AND LIABILITI 1,420,280 1,768,325 2,252,326 2,885,635 3,672,848 4,622,446 5,750,896 7,047,063 8,521,944 9,921,312 11,225,860 

September, 2013

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1122..33 SSttaatteemmeenntt oof f CCaasshh FFllooww 

Statement Summaries SMEDA

Cash Flow Statement

Rs. in actuals

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Operating activit ies

 Net profit - 490,239 637,916 799,912 967,549 1,144,800 1,339,742 1,524,877 1,474,881 1,399,368 1,304,548 

Add: depreciation expense - 76,200 76,200 76,200 76,200 76,200 76,200 76,200 76,200 76,200 76,200 

amortization expense - 15,656 15,656 15,656 15,656 15,656 - - - - - 

Pre-paid building rent (40,000) (4,000) (4,400) (4,840) (5,324) (5,856) (6,442) (7,086) (7,795) (8,574) 94,318 

Cash provided by operations (40,000) 578,095 725,372 886,927 1,054,081 1,230,800 1,409,500 1,593,991 1,543,287 1,466,994 1,475,066 

Financing activities

Change in long term debt 1,278,252 (142,194) (153,915) (166,603) (180,336) (195,202) (211,293) (228,710) - - - 

Issuance of shares 142,028 - - - - - - - - - - 

Cash provided by / (used for) financ 1,420,280 (142,194) (153,915) (166,603) (180,336) (195,202) (211,293) (228,710) - - - 

 Investing act iviti es

Capital expenditure (840,280) - - - - - - - - - - 

Cash (used for) / provided by invest (840,280) - - - - - - - - - - 

 NET CASH 540,000 435,901 571,457 720,325 873,745 1,035,598 1,198,207 1,365,281 1,543,287 1,466,994 1,475,066 

Cash balance brought forward 540,000 975,901 1,547,358 2,267,683 3,141,428 4,177,026 5,375,233 6,740,514 8,283,800 9,750,794 

Cas h av aila ble fo r ap pro pria tio n 540,000 975,901 1,547,358 2,267,683 3,141,428 4,177,026 5,375,233 6,740,514 8,283,800 9,750,794 11,225,860 

Dividend - - - - - - - - - - - 

Cash carried forward 540,000 975,901 1,547,358 2,267,683 3,141,428 4,177,026 5,375,233 6,740,514 8,283,800 9,750,794 11,225,860 

September, 2013

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Pre-feasibility Study

1122..44 UUsseef f uull PPr r oo j jeecctt MMaannaaggeemmeenntt TTiippss 

Technology

•  Required spare parts & consumables: Suppliers credit agreements and availability as

per schedule of maintenance be ensured before start of operations

•  Energy Requirement: Should not be overestimated or installed in excess and alternate

source of energy for critical operations be arranged in advance

•  Machinery Suppl iers: Should be asked for training and after sales services under the

contract with the machinery suppliers

•  Quality Assurance Equipment & Standards: Whatever means required products

quality standards need to be defined on the packaging and a system to check them

instituted, this improves credibility

Marketing

•  Product Development & Packaging: Expert's help may be engaged for 

product/service and packaging design & development

•   Ads & P.O.S. Promotion: Business promotion and dissemination through banners and

launch events is highly recommended. Product broachers from good quality service

providers

•  Sales & Distribution Network: Expert's advise and distribution agreements are

required with.

•  Price - Bulk Discounts, Cost plus Introductory Discounts: Price should never beallowed to compromise quality. Price during introductory phase may be lower and used

as promotional tool. Product cost estimates should be carefully documented before

price setting. Government controlled prices shall be displayed.

Human Resources

•   Adequacy & Competencies: Skilled and experienced staff should be considered an

investment even to the extent of offering share in business profit.

•  Performance Based Remuneration: Attempt to manage human resource cost should

be focused through performance measurement and performance based compensation.•  Training & Skill Development: Encouraging training and skill of self & employees

through experts and exposure of best practices is route to success. Least cost options

for Training and Skill Development (T&SD) may be linked with compensation benefits

and awards.

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Pre-feasibility Study

1122..55 UUsseef f uull LLiinnkkss 

•  Prime Minister’s Office

www.pmo.gov.pk

•  Small & Medium Enterprises Development Authority (SMEDA)

www.smeda.org.pk

•  National Bank of Pakistan (SBP)

www.nbp.com.pk

•  First Women Bank Limited (FWBL)

www.fwbl.com.pk

•  Government of Pakistan

www.pakistan.gov.pk

•  Ministry of Industries & Production

www.moip.gov.pk

•  Ministry of Education, Training & Standards in Higher Education

http://moptt.gov.pk

•  Government of Punjab

www.punjab.gov.pk

•  Government of Sindh

www.sindh.gov.pk

•  Government of Khyber Pakhtoonkhwa

www.khyberpakhtunkhwa.gov.pk

•  Government of Balochistan

www.balochistan.gov.pk

•  Government of Gilgi t Baltistan

www.gilgitbaltistan.gov.pk

•  Government of Azad Jamu Kashmir 

www.ajk.gov.pk

•  Trade Development Authority of Pakistan (TDAP)

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Pre-feasibility Study

www.tdap.gov.pk

•  Securi ty Commission of Pakistan (SECP)

www.secp.gov.pk

•  Federation of Pakistan Chambers of Commerce and Industry (FPCCI)

www.fpcci.com.pk

•  State Bank of Pakistan (SBP)

www.sbp.org.pk

•  Pakistan Institute of Fashion Design (PIFD)

www.pifd.edu.pk

•  Pakistan Fashion Design Council (PFDC)

www.pfdc.org 

1133 KKEEYY  A ASSSSUUMMPPTTIIOONNSS 

PPaar r tt iiccuullaar r  A Assssuummpptt iioonnss 

SSaalleess PPr r iiccee GGr r oowwtthh RRaattee 55 %% ppeer r yyeeaar r  

CCaappaacciittyy UUttiilliizzaattiioonn GGr r oowwtthh RRaattee 55 %% ppeer r yyeeaar r  

IInnccr r eeaassee iinn CCoosstt oof f RRaaww MMaatteer r iiaallss 1100 %% ppeer r yyeeaar r  

IInnccr r eeaassee iinn uuttiilliittiieess ((EElleeccttr r iicciittyy//WWaatteer r //GGaass 1100 %% ppeer r yyeeaar r  

DDeebbtt // EEqquuiittyy RRaattiioo 9900 :: 1100 

PPllaanntt BBuuiillddiinngg 1100 %% ppeer r aannnnuumm 

MMaacchhiinneer r yy 1100 %% ppeer r aannnnuumm 

OOf f f f iiccee FFuur r nniittuur r ee && EEqquuiippmmeenntt 1100 %% ppeer r aannnnuumm 

LLooaann PPeer r iioodd 77 YYeeaar r ss 

LLooaann iinnssttaallllmmeennttss QQuuaar r tteer r llyy 

FFiinnaanncciiaall CChhaar r ggeess ((LLooaann RRaattee)) 88 %% ppeer r aannnnuumm 

September, 2013

15


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