farhan_dr11@yahoo.com Small Business loan

1. 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
helpdesk@smeda.org.pk
REGIONAL OFFICE
PUNJAB
REGIONAL OFFICE
SINDH
REGIONAL OFFICE
KPK
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) 5610572
helpdesk-khi@smeda.org.pk
Ground Floor
State Life Building
The Mall, Peshawar.
Tel: (091) 9213046-47
Fax: (091) 286908
helpdesk-pew@smeda.org.pk
Bungalow No. 15-A
Chaman Housing Scheme
Airport Road, Quetta.
Tel: (081) 831623, 831702
Fax: (081) 831922
helpdesk-qta@smeda.org.pk
September 2013

2. Pre-feasibility Study
Day Care Center
Table of Contents
1
2
3
4
5
6
7
8
9
10
11
Disclaimer ............................................................................................................................... 1
Purpose of the Document ........................................................................................................ 2
Introduction to SMEDA.......................................................................................................... 2
Introduction to Scheme ........................................................................................................... 2
Executive Summary ................................................................................................................ 3
Brief Description of Project & Product .................................................................................. 3
Critical Factors in Decision Making ....................................................................................... 4
Installed & Operational Capacities ......................................................................................... 4
Geographical Potential for Investment ................................................................................... 4
Potential Target Markets & Cities .......................................................................................... 5
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
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3. Pre-feasibility Study
Day Care Center
1 DISCLAIMER
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 is
necessary 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
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4. Pre-feasibility Study
Day Care Center
2 PURPOSE OF THE DOCUMENT
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.
3 INTRODUCTION TO SMEDA
The Small and Medium Enterprises Development Authority (SMEDA) was established in
October 1998 with an objective to provide fresh impetus to the economy through
development of Small and Medium Enterprises (SMEs).
With a mission "to assist in employment generation and value addition to the national
income, 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.
4 INTRODUCTION TO SCHEME
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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5. 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).
5 EXECUTIVE SUMMARY
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 by
working 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
6 BRIEF DESCRIPTION OF PROJECT & PRODUCT
•
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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6. Pre-feasibility Study
Day Care Center
•
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 shows
the unit shall be profitable from the very first year of operation.
7 CRITICAL FACTORS IN DECISION MAKING
•
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.
8 INSTALLED & OPERATIONAL CAPACITIES
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 first
year, where 24 kids would be enrolled. However, this capacity may not be achieved in
the initial years of operations.
9 GEOGRAPHICAL POTENTIAL FOR INVESTMENT
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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7. Pre-feasibility Study
Day Care Center
10 POTENTIAL TARGET MARKETS & CITIES
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.
11 PROJECT COST SUMMARY
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. Various
cost 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.
1 1 .1
Project Economics
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.
Table 1: Project Economics
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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8. Pre-feasibility Study
1 1 .2
Day Care Center
Project Financing
Following table provides details of the equity required and variables related to bank
loan;
Table 2: Project Financing
Description
Total Equity (10%)
Bank Loan (90%)
Markup to the Borrower
Tenure of the Loan (Years)
1 1 .3
Details
Rs.142,028
Rs.1,278,252
8%
7
Project Cost
Following requirements have been identified for operations of the proposed business.
Table 3: Capital Investment for the Project
Capital Investment
Building/Infrastructure
Office Equipment
Furniture & Fixtures
Machinery & Equipment
Pre Operating Cost
Total Capital Costs
Initial Working Capital
5,000
483,000
274,000
78,280
840,280
580,000
Total Project Cost
1 1 .4
Amount (Rs.)
1,420,280
Space Requirement
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
Total Building Area
2,500
4,500
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9. Pre-feasibility Study
1 1 .5
Day Care Center
Equipment Requirement
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 which
are 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 Detail
Equipment Details
Qty
Slide (Iron)
Merry-Go-Round
Swings (Outdoor) (3 Seater)
Monkey Bar
Baby Eating Seat
Baby Rocker / Swing Chair
Sleeping Cot
Beds (Single + Mattress)
White Board
Soft Boards
Cooking Range / Burner Stove
Microwave
Refrigerator
Kitchen Utensils
Total Machinery & Equipment
1 1 .6
1
1
2
2
2
2
3
5
5
5
1
1
1
1
Cost/Uni
t
15,000
20,000
30,000
10,000
8,000
4,000
10,000
10,000
1,500
1,500
3,000
7,000
25,000
5,000
Total Cost
15,000
20,000
60,000
20,000
16,000
8,000
30,000
50,000
7,500
7,500
3,000
7,000
25,000
5,000
274,000
Furniture & Fixtures Requirement
Furniture & fixtures requirement for the project is detailed as under:
Table 6: Furniture & Fixture Detail
Description
Qty
Office Chairs
Office Table
Sofa Cum Bed
2
1
2
7
September 2013
Cost/Uni
t
5,000
10,000
10,000
Total Cost
10,000
60,000
20,000

10. Pre-feasibility Study
Day Care Center
Seating Chairs (Children)
Book Rack (Library)
Eating Table
Electric Wiring
Cupboards & Book Shelves
Carpet
Television
Air Conditions (1.5 Window)
Total Furniture & Fixtures
1 1 .7
24
2
2
1
10
2,000
1
4
2,000
5,000
15,000
5,000
6,500
30
40,000
55,000
48,000
10,000
30,000
5,000
65,000
60,000
100,000
220,000
483,000
Human Resource Requirement
The manpower required for operating the Day Care Center is as follows:
Table 7: Human Resource Detail
Description
Salary
Total Monthly Salary
1
4
1
6
Owner / Manager
Nannies
Guard
Total
Qty
20,000
10,000
10,000
20,000
40,000
10,000
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.
1 1 .8
Revenue Generation
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 Detail
Fees / month (Rs./Unit)
9,000
First Year
Enrolment
24
Annual Revenue
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September 2013
Monthly
Revenue (Rs)
216,000
2,592,000

11. Pre-feasibility Study
1 1 .9
Day Care Center
Other Costs
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
Water Price Growth Rate
Salary Growth Rate
Rent Growth Rate
Student Fee Growth Rate
10%
10%
10%
10%
10%
Contacts – Suppliers, Experts / Consultants, Dev. Institutions
Below is the list of major suppliers of Children Toys for Day Care Center:
1. Babyland Toys
1st Floor, Sheikh Innayat-Ullah Building,
Liberty Market, Gulberg 3, Lahore Pakistan
Tel: 042-35757468, Mob: 0336-4050607
http://www.babyland.com.pk/
2. Kaymu Toys
Arfa Software Technology Park 346-B
Ferozpur Road Lahore, Pakistan
http://www.kaymu.pk
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12. Pre-feasibility Study
Day Care Center
12 ANNEXURE
1 2 .1
Income Statement
Statement Summaries
SMEDA
Income Statement
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Rs. in actuals
Year 10
Revenue
Cost of goods sold
Gross Profit
2,592,000
2,592,000
2,948,400
2,948,400
3,333,960
3,333,960
3,750,705
3,750,705
4,200,790
4,200,790
4,686,506
4,686,506
5,210,292
5,210,292
5,470,806
5,470,806
5,744,347
5,744,347
6,031,564
6,031,564
General administration & selling expenses
Administration expense
Rental expense
Utilities expense
Travelling & Comm. expense (phone, fax, etc.)
Office vehicles running expense
Office expenses (stationary, etc.)
Promotional expense
Insurance expense
Professional fees (legal, audit, etc.)
Depreciation expense
Amortization expense
Property tax expense
Miscellaneous expense
Subtotal
Operating Income
840,000
480,000
480,000
51,840
76,200
15,656
60,000
2,003,696
588,304
924,000
528,000
528,000
58,968
76,200
15,656
66,000
2,196,824
751,576
1,016,400
580,800
580,800
66,679
76,200
15,656
72,600
2,409,135
924,825
1,118,040
638,880
638,880
75,014
76,200
15,656
79,860
2,642,530
1,108,175
1,229,844
702,768
702,768
84,016
76,200
15,656
87,846
2,899,098
1,301,692
1,352,828
773,045
773,045
93,730
76,200
96,631
3,165,479
1,521,027
1,488,111
850,349
850,349
104,206
76,200
106,294
3,475,509
1,734,783
1,636,922
935,384
935,384
109,416
76,200
116,923
3,810,230
1,660,577
1,800,615
1,028,923
1,028,923
114,887
76,200
128,615
4,178,162
1,566,185
1,980,676
1,131,815
1,131,815
120,631
76,200
141,477
4,582,614
1,448,950
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
1,448,950
Interest expense
Earnings Before Tax
98,065
490,239
86,343
665,233
73,656
851,169
59,922
1,048,253
45,057
1,256,635
28,966
1,492,061
11,549
1,723,234
1,660,577
1,566,185
1,448,950
123,128
233,288
261,235
291,612
324,542
360,762
Tax
-
-
-
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September, 2013
-

13. Pre-feasibility Study
1 2 .2
Day Care Center
Balance Sheet
Statement Summaries
SMEDA
Balance Sheet
Year 0
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Rs. in actuals
Year 10
Assets
Current assets
Cash & Bank
Pre-paid building rent
Total Current Assets
540,000
40,000
580,000
975,901
44,000
1,019,901
1,547,358
48,400
1,595,758
2,267,683
53,240
2,320,923
3,141,428
58,564
3,199,992
4,177,026
64,420
4,241,446
5,375,233
70,862
5,446,096
6,740,514
77,949
6,818,463
8,283,800
85,744
8,369,544
9,750,794
94,318
9,845,112
11,225,860
11,225,860
Fixed assets
Machinery & equipment
Furniture & fixtures
Office vehicles
OEducational Tools
Total Fixed Assets
274,000
483,000
5,000
762,000
246,600
434,700
4,500
685,800
219,200
386,400
4,000
609,600
191,800
338,100
3,500
533,400
164,400
289,800
3,000
457,200
137,000
241,500
2,500
381,000
109,600
193,200
2,000
304,800
82,200
144,900
1,500
228,600
54,800
96,600
1,000
152,400
27,400
48,300
500
76,200
78,280
78,280
1,420,280
62,624
62,624
1,768,325
46,968
46,968
2,252,326
31,312
31,312
2,885,635
15,656
15,656
3,672,848
4,622,446
5,750,896
7,047,063
8,521,944
9,921,312
Intangible assets
Pre-operation costs
Legal, licensing, & training costs
Total Intangible Assets
TOTAL ASSETS
Liabilities & Shareholders' Equity
Current liabilities
Total Current Liabilities
-
-
-
-
-
-
-
Other liabilities
Long term debt
Total Long Term Liabilities
1,278,252
1,278,252
1,136,058
1,136,058
982,143
982,143
815,540
815,540
635,204
635,204
440,002
440,002
228,710
228,710
Shareholders' equity
Paid-up capital
Retained earnings
Total Equity
TOTAL CAPITAL AND LIABILITI
142,028
142,028
1,420,280
142,028
490,239
632,267
1,768,325
142,028
1,128,156
1,270,184
2,252,326
142,028
1,928,067
2,070,095
2,885,635
142,028
2,895,616
3,037,644
3,672,848
142,028
4,040,416
4,182,444
4,622,446
142,028
5,380,158
5,522,186
5,750,896
11
September, 2013
-
11,225,860
-
-
-
-
-
-
-
-
142,028
6,905,035
7,047,063
7,047,063
142,028
8,379,916
8,521,944
8,521,944
142,028
9,779,284
9,921,312
9,921,312
142,028
11,083,832
11,225,860
11,225,860

14. Pre-feasibility Study
1 2 .3
Day Care Center
Statement of Cash Flow
Statement Summaries
SMEDA
Cash Flow Statement
Rs. in actuals
Year 10
Year 0
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
(40,000)
(40,000)
490,239
76,200
15,656
(4,000)
578,095
637,916
76,200
15,656
(4,400)
725,372
799,912
76,200
15,656
(4,840)
886,927
967,549
76,200
15,656
(5,324)
1,054,081
1,144,800
76,200
15,656
(5,856)
1,230,800
1,339,742
76,200
(6,442)
1,409,500
1,524,877
76,200
(7,086)
1,593,991
1,474,881
76,200
(7,795)
1,543,287
1,399,368
76,200
(8,574)
1,466,994
Financing activities
Change in long term debt
Issuance of shares
Cash provided by / (used for) financ
1,278,252
142,028
1,420,280
(142,194)
(142,194)
(153,915)
(153,915)
(166,603)
(166,603)
(180,336)
(180,336)
(195,202)
(195,202)
(211,293)
(211,293)
(228,710)
(228,710)
Investing activities
Capital expenditure
Cash (used for) / provided by invest
(840,280)
(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
Cash available for appropriation
Dividend
Cash carried forward
540,000
540,000
540,000
975,901
975,901
975,901
1,547,358
1,547,358
1,547,358
2,267,683
2,267,683
2,267,683
3,141,428
3,141,428
3,141,428
4,177,026
4,177,026
4,177,026
5,375,233
5,375,233
5,375,233
6,740,514
6,740,514
6,740,514
8,283,800
8,283,800
8,283,800
9,750,794
9,750,794
9,750,794
11,225,860
11,225,860
Operating activities
Net profit
Add: depreciation expense
amortization expense
Pre-paid building rent
Cash provided by operations
-
-
-
-
12
September, 2013
-
-
-
1,304,548
76,200
94,318
1,475,066
-
-
-
-
-
-

15. Pre-feasibility Study
1 2 .4
Useful Project Management Tips
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 Suppliers: 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
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 be
allowed 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.
help
may
be
engaged
for
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.
13
September, 2013

16. Pre-feasibility Study
1 2 .5
•
Useful Links
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 Gilgit Baltistan
www.gilgitbaltistan.gov.pk
•
Government of Azad Jamu Kashmir
www.ajk.gov.pk
•
Trade Development Authority of Pakistan (TDAP)
14
September, 2013

17. Pre-feasibility Study
www.tdap.gov.pk
•
Security 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
13 KEY ASSUMPTIONS
Particular
Assumptions
Sales Price Growth Rate
5 % per year
Capacity Utilization Growth Rate
5 % per year
Increase in Cost of Raw Materials
10 % per year
Increase in utilities (Electricity/W ater/Gas
10 % per year
Debt / Equity Ratio
90 : 10
Plant Building
10 % per annum
Machinery
10 % per annum
Office Furniture & Equipment
10 % per annum
Loan Period
7 Years
Loan installments
Quarterly
Financial Charges (Loan Rate)
8 % per annum
15
September, 2013