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Small Business loan

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Day care center Day care center Document Transcript

  • 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
  • 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 1 September 2013
  • 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 1 September 2013
  • 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 2 September 2013
  • 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. 3 September 2013
  • 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. 4 September 2013
  • 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. 5 September 2013
  • 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 6 September 2013
  • 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
  • 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 8 September 2013 Monthly Revenue (Rs) 216,000 2,592,000
  • 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 9 September 2013
  • 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 - - - 10 September, 2013 -
  • 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
  • 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 - - - - - -
  • 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
  • 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
  • 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