Day Care Center

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Pre-Feasibility Study
(Day Care Center)


Small and Medium Enterprises Development Authority
Ministry of Industries & Production
Government of Pakistan
www.smeda.org.pk
HEAD OFFICE
4th Floor, Building No. 3, Aiwan-e-Iqbal Complex, Egerton Road,
Lahore
Tel: (92 42) 111 111 456, Fax: (92 42) 36304926-7
[email protected]

REGIONAL OFFICE
Punjab
REGIONAL OFFICE
Sindh
REGIONAL OFFICE
Khyber Pakhtunkhwa
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) 35610572
[email protected]
Ground Floor
State Life Building
The Mall, Peshawar.
Tel: (091) 111-111-456
Fax: (091) 5286908
[email protected]
Bungalow No. 15-A
Chaman Housing Scheme
Airport Road, Quetta.
Tel: (081) 2831623, 2831702
Fax: (081) 2831922
[email protected]


Note: All SMEDA Services / information related to PM's Youth Business Loan are Free of Cost
December, 2013


Pre-feasibility Study Day Care Center
Table of Contents
1. DISCLAIMER .......................................................................................................... 2
2. PURPOSE OF THE DOCUMENT ........................................................................... 3
3. INTRODUCTION TO SMEDA ................................................................................. 3
4. INTRODUCTION TO SCHEME .............................................................................. 4
5. EXECUTIVE SUMMARY ......................................................................................... 4
6. BRIEF DESCRIPTION OF PROJ ECT & PRODUCT .............................................. 5
7. CRITICAL FACTORS .............................................................................................. 5
8. INSTALLED & OPERATIONAL CAPACITIES ......................................................... 6
9. GEOGRAPHICAL POTENTIAL FOR INVESTMENT .............................................. 6
10. POTENTIAL TARGET MARKETS & CITIES ........................................................... 6
11. PROJ ECT COST SUMMARY ................................................................................. 6
11.1 PROJ ECT ECONOMICS ......................................................................................... 7
11.2 PROJ ECT FINANCING ........................................................................................... 7
11.3 PROJ ECT COST ................................................................................................... 7
11.4 SPACE REQUIREMENT.......................................................................................... 8
11.5 EQUIPMENT REQUIREMENT .................................................................................. 8
11.6 FURNITURE & FIXTURES REQUIREMENT ................................................................ 9
11.7 HUMAN RESOURCE REQUIREMENT ....................................................................... 9
11.8 REVENUE GENERATION ...................................................................................... 10
11.9 OTHER COSTS (PROJ ECTED GROWTH RATES)..................................................... 11
12. CONTACT DETAILS OF DAY CARE CENTRE EQUIPMENT SUPPLIERS ......... 11
13. ANNEXURE .......................................................................................................... 12
13.1 INCOME STATEMENT .......................................................................................... 12
13.2 BALANCE SHEET ............................................................................................... 13
13.3 STATEMENT OF CASH FLOW ............................................................................... 14
13.4 USEFUL PROJ ECT MANAGEMENT TIPS ................................................................ 15
13.5 USEFUL LINKS ................................................................................................... 15
14. KEY ASSUMPTIONS ............................................................................................ 16

Pre-feasibility Study Day Care Center
1 1. . D DI IS SC CL LA AI IM ME ER R
This information memorandum is to introduce the subject matter and provide a general
idea and information on the said subject. 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


















SMEDA Services / Information related to PM’s Youth Business Loan are FREE OF COST - 2
Pre-feasibility Study Day Care Center
2 2. . P PU UR RP PO OS SE E O OF F T TH HE E D DO OC CU UM ME EN NT T
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, production,
marketing, finance and business management.
The purpose of this document is to facilitate potential investors in Day Care Center by
providing them a general understanding of the business with the intention of supporting
potential investors in crucial investment decisions.
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 3. . I IN NT TR RO OD DU UC CT TI IO ON N T TO O S SM ME ED DA 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 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,
institutional collaboration and networking initiatives.
Preparation and dissemination of prefeasibility studies in key areas of investment has
been a 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.
SMEDA Services / Information related to PM’s Youth Business Loan are FREE OF COST - 3
Pre-feasibility Study Day Care Center
4 4. . I IN NT TR RO OD DU UC CT TI IO ON N T TO O S SC CH HE EM ME E
Prime Minister’s Youth Business Loan, for young entrepreneurs, with an allocated
budget of Rs. 5.0 Billion for the year 2013-14, is designed to provide subsidised
financing at 8% mark-up per annum for one hundred thousand (100,000) beneficiaries,
through designated financial institutions, initially by The National Bank of Pakistan
(NBP) and The First Women Bank Limited. (FWBL).
Small business loans from Rs. 0.1 million to Rs. 2.0 million with tenure up to 8 years,
inclusive of grace period of 1 year, and a debt : equity of 90 : 10 will be disbursed to
SME beneficiaries across Pakistan, covering; Punjab, Sindh, Khyber Pakhtunkhwah,
Balochistan, Gilgit Baltistan, Azad J ammu & Kashmir and Federally Administered Tribal
Areas (FATA).
5 5. . E EX XE EC CU UT TI IV VE E S SU UM MM MA AR RY Y
Life, today, is characterized by independent family system, need for improved living
standards, quality education for children, etc., resulting in increased pressure on
working women to efficiently manage both their professional and domestic
responsibilities. The demand for day care centers is on the rise, specifically by working
mothers (doctors, business women, government servants, corporate employees,
teachers, etc), and the service is deemed as a profitable entrepreneurship opportunity.
Day Care Center is proposed to be located in major cities such as Islamabad, Lahore,
Karachi, Peshawar, Multan, Gujranwala, Sialkot and Quetta etc.
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, facilitated 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. 1.98 Million with fixed investment of Rs. 1.07
Million and working capital of Rs. 0.91 Million. Given the cost assumptions, IRR,
payback period and NPV are 38%, 3.85 years and Rs. 3.78 million respectively.
The project will generate direct employment opportunity for 06 persons. Higher return
on investment and a steady growth of business is expected with the entrepreneur
(especially women) having some prior experience in the related field of business.
SMEDA Services / Information related to PM’s Youth Business Loan are FREE OF COST - 4
Pre-feasibility Study Day Care Center
6 6. . B BR RI IE EF F D DE ES SC CR RI IP PT TI IO ON N O OF F P PR RO OJ JE EC CT T & & P PR RO OD DU UC CT T
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 Centres at a much earlier age is gaining rapid acceptance.
This pre-feasibility study provides basic information for setting-up a day care centre with
modern learning techniques and extracurricular activities. The proposed centre will offer
a hygienic and efficiently managed care facility for children aged 6 months to 5 years.
The centre would have the maximum capacity of providing service to 40 children;
however, it assumed that 24 enrolments would be made during first year of its
operation.
The proposed centre is recommended to be established in a rented building, preferably
lower portion of one kanal house (4,500 sq.ft. area) with a reasonable front / back yard.
The total project cost for setting up this centre is estimated at Rs. 1.98 million, out of
which, the capital cost is estimated at Rs. 1.07 million and working capital of Rs. 0.91
million. The project is financed through 90% debt and 10% equity. The project NPV is
around Rs. 3.78 million with an IRR of 38% and payback period of 3.85 years.
7 7. . C CR RI IT TI IC CA AL L F FA AC CT TO OR RS S
The proposed project has following factors critical to success;
• Secured, hazard free, and kids friendly environment is provided at center.
• Interior of Center should be designed to attract kids attention and promote
learning. Like colorful walls with educational material, pasting theme oriented
chart papers, and any other cost effective mode deem appropriate.
• Developing plan of daily activities of enrolled kids.
• Extra care should be given to keep the place hygienic, and clean.
• Location of the center in a commercial area.
• Opening of center with proper launch and promotional material.
• Hiring of a well-trained / experienced care provider for kids.
• Establishment of the Center in a rented building to reduce the project cost.
• Parents are informed immediately in case of strike, kid is unwell (fever, flue,
diarrhea, etc.), diaper rash and any other observation important for child
development.
SMEDA Services / Information related to PM’s Youth Business Loan are FREE OF COST - 5
Pre-feasibility Study Day Care Center
• Frequent interaction between care provider and parent.
8 8. . I IN NS ST TA AL LL LE ED D & & O OP PE ER RA AT TI IO ON NA AL L C CA AP PA AC CI IT TI IE ES S
It is proposed that infants of age more than 6 months and children of ages up to 5 years
may be enrolled in the center. The centre will have a maximum capacity of 40
enrolments. Initially, the overall utilization in the first year of operation would be 60%
(i.e. 24 kids would be enrolled). This capacity is assumed to grow at a constant rate of
5% in subsequent years.

9 9. . G GE EO OG GR RA AP PH HI IC CA AL L P PO OT TE EN NT TI IA AL L F FO OR R I IN NV VE ES ST TM ME EN NT T
The increasing population and high concentration of educated / working class in major
cities like Karachi, Lahore, Islamabad, Peshawar, Quetta, Multan, Gujranwala, etc.,
offers a very lucrative business opportunity for opening up well planned Day Care
Centres. However, it is recommended that the centre should be located in an easily
approachable location, in line with the selected target market.

1 10 0. . P PO OT TE EN NT TI IA AL L T TA AR RG GE ET T M MA AR RK KE ET TS S & & C CI IT TI IE ES S
The target market for the proposed centre is working couple having infants of age more
than 6 months to children of ages up to 5 years. The business community also has a
positive response towards the idea of day care center due to their busy schedules and,
therefore, can be targeted as potential customers.
Keeping in view the economic and social factors, it is recommended that the proposed
project may be established in major cities such as Islamabad, Lahore, Quetta, Karachi,
Multan, and Peshawar. However the project may also be opened in other cities and
towns after careful market analysis.

1 11 1. . P PR RO OJ JE EC CT T C CO OS ST T S SU UM MM MA AR RY Y
A detailed financial model has been developed to analyze the commercial viability of
Day Care Center under the ‘Prime Minister’s Youth Business Loan’. Various cost and
revenue related assumptions along with results of the analysis are outlined in this
section. The projected Income Statement, Cash Flow Statement and Balance Sheet are
attached as appendices.
SMEDA Services / Information related to PM’s Youth Business Loan are FREE OF COST - 6
Pre-feasibility Study Day Care Center
1 11 1. .1 1 P Pr ro oj j e ec ct t E Ec co on no om mi i c cs s
The proposed venture has the capacity of 40 enrolments, however, a target of 24
enrolments is assumed in year 01 of the proposed center. The following table shows
internal rate of return and payback period.
T Ta ab bl l e e 1 1: : P Pr ro oj j e ec ct t E Ec co on no om mi i c cs s
Description Details
Internal Rate of Return (IRR) 38%
Payback Period (yrs) 3.85
Net Present Value (NPV) Rs. 3,781,804

Returns on the scheme and its profitability are highly dependent on the efficiency of
operations, location, staff, hygienic environment, safety, curricular and extracurricular
activities, etc.
1 11 1. .2 2 P Pr ro oj j e ec ct t F Fi i n na an nc ci i n ng g
Following table provides details of the equity required and variables related to bank
loan;
Table 2: Project Financing
Description Details
Total Equity (10%) Rs.198,237
Bank Loan (90%) Rs.1,784,129
Markup to the Borrower 8%
Tenure of the Loan (Years) 8
Grace period (year) 1

1 11 1. .3 3 P Pr ro oj j e ec ct t C Co os st t
Following requirements have been identified for operations of the proposed business.
Table 3: Capital Investment for the Project
Capital Investment Amount (Rs.)
Office Equipment 5,000
Furniture & Fixtures 588,000
SMEDA Services / Information related to PM’s Youth Business Loan are FREE OF COST - 7
Pre-feasibility Study Day Care Center
Machinery & Equipment 369,000
Pre Operating Cost 110,365
Total Capital Costs 1,072,365
Initial Working Capital 910,000
Total Project Cost 1,982,365
1 11 1. .4 4 S Sp pa ac ce e R Re eq qu ui i r re em me en nt t
It is recommended that the proposed project should be established in a rented building,
preferably lower portion of a one kanal house (4,500 sq.ft. area) with two bedrooms and
attached bath, one drawing, one dining room, one kitchen and a reasonable front / back
yard. The rent for the building is estimated at Rs. 55,000 per month.
Table 4: Space Requirement
Description Area (Sq .ft.)
Building Covered Area 2,000
Play Area / Grounds 2,500
Total Required Area 4,500
1 11 1. .5 5 E Eq qu ui i p pm me en nt t R Re eq qu ui i r re em me en nt t
The basic requirements for a day care center include activity based equipment for
outdoor/play area activities (slides, merry-go-round and swings etc.), equipment for
indoor activities (soft boards, white boards, books, paints, char papers, colours, blocks,
educational toys, etc.), kitchen equipment (microwave, refrigerator, utensils, etc.),
entertainment equipment (T.V., DVD player) and sleeping cots / beds, all of which are
readily available in the local market. Details of the equipment are given as below;
Table 5: Equipment Required for Center and Office
Equipment Details Qty Cost/Unit Total Cost
Slide (iron) 1 15,000 15,000
Merry-go-round 1 20,000 20,000
Swings (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 8,000 40,000
White board 5 1,500 7,500
SMEDA Services / Information related to PM’s Youth Business Loan are FREE OF COST - 8
Pre-feasibility Study Day Care Center
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 10,000 10,000
Miscellaneous (books, colors, paints, toys,

1 100,000 100,000
Total 369,000

1 11 1. .6 6 F Fu ur rn ni i t t u ur re e & & F Fi i x xt t u ur re es s R Re eq qu ui i r re em me en nt t
Furniture & fixtures requirement for the project is detailed as under:

Table 6: Furniture & Fixture Detail
Description Qty Cost/Unit Total Cost
(Rs.)
Office chairs 2 5,000 10,000
Office table 1 10,000 10,000
Sofa cum bed 2 10,000 20,000
Seating chairs (children) 24 2,000 48,000
Study table (indoor) 2 10,000 20,000
Book rack (Library) 2 5,000 10,000
Eating table (8 chairs) 2 15,000 30,000
Carpeting (sq.ft.) 3,000 30 90,000
Electric wiring & lighting 1 10,000 10,000
Television 1 40,000 40,000
DVD Player 1 10,000 10,000
Air conditioners (1.5 ton window) 4 55,000 220,000
UPS (3KVA) with batteries 1 70,000 70,000
Total Furniture & Fixtures 588,000


1 11 1. .7 7 H Hu um ma an n R Re es so ou ur rc ce e R Re eq qu ui i r re em me en nt t
The manpower required for operating the Day Care Center is as follows:

SMEDA Services / Information related to PM’s Youth Business Loan are FREE OF COST - 9
Pre-feasibility Study Day Care Center
Table 7: Human Resource Detail
Description Quantity Monthl y Salary /
employee (Rs.)
Total Monthl y Salary
(Rs.)
Owner / Manager 1 20,000 20,000
Nannies
1
5 12,000 60,000
Helper / J unior staff 1 10,000 10,000
Guard 1 10,000 10,000
Total 8 100,000

It is highly recommended that nannies should be qualified females so that parents can
be assured of about their child’s proper care and safety. The nannies should be at least
intermediate pass with good communication skills and empathy for children, and
preferably trained for child care. Moreover, the owner/manager should develop a daily
plan for kids’ activities including:
• One hour circle time daily full of action, music and fun for kids (covering nursery
rhymes, alphabets/colors/number recognition songs and physical moves acted
together kids and caregivers)
• Colouring, pasting, and painting activities
• Share with kids concept of different festivals of Pakistan (Pakistan day, Eid, Iqbal
Day, Quaid-e-Azam Day, etc)
• Also give them other basic ideas regarding family, places, senses, body parts,
manners, greetings, sharing, seasons, days, transport, animals, etc.
• Play time (indoor & outdoor)
• Nap time
• Dinning (Breakfast, lunch, tea time, and for infants feed every 2 hours)
• Diaper change every 3-4 hours or as desired.

Each child Parent be asked to send a daily diary to record daily report of their child. This
will include recording child meal times and quantity eaten, milk/ water intake time and
ounces consumed, theme of the week, diaper changes, any unusual occurrence (fever,
vomit, fight, etc).
1 11 1. .8 8 R Re ev ve en nu ue e G Ge en ne er ra at t i i o on n
It is proposed that infants of more than 6 months of ages to children of 5 years of ages
be enrolled in the center. The project would have a total capacity of 40 enrollments.
1
It is assumed that 1 nanny is required for 4-5 children.
SMEDA Services / Information related to PM’s Youth Business Loan are FREE OF COST - 10

Pre-feasibility Study Day Care Center
However, keeping in view market research and analysis, it is assumed that project
capacity would be 24 enrolments in year 01 of its operation.


Table 8: Revenue Detail
Fees / month (Rs./Unit) First Year
Enrolment
Monthl y Revenue
(Rs)
10,000 24 240,000
Annual Revenue 2,880,000
1 11 1. .9 9 O Ot t h he er r C Co os st t s s ( (P Pr ro oj j e ec ct te ed d G Gr ro ow wt t h h R Ra at t e es s) )
The primary overhead cost of the project would be utilities comprising electricity, gas &
water, whereas cost of fuel must be kept in mind for generator expenses.
Table 9: Costs Projection
Electricity Price Growth Rate 10%
Gas Price Growth Rate 10%
Water Price Growth Rate 10%
Salary Growth Rate 10%
Rent Growth Rate 10%
Fee Growth Rate 10%

1 12 2. . C CO ON NT TA AC CT T D DE ET TA AI IL LS S O OF F D DA AY Y C CA AR RE E C CE EN NT TR RE E E EQ QU UI IP PM ME EN NT T
S SU UP PP PL LI IE ER RS S
Below is the list of major suppliers of Children Toys for Day Care Center:
Babyland Toys
1st Floor, Sheikh Innayat-Ullah Building,
Liberty Market, Gulberg 3,
Lahore, Pakistan
Tel: 042-35757468, Mob: 0336-4050607
www.babyland.com
Kaymu Toys
Arfa Software Technology Park
Ferozpur Road, Lahore, Pakistan
Tel: 042 - 35972162
www.kaymu.pk


Other local wholesale market in different cities maybe contacted for the said purpose.
SMEDA Services / Information related to PM’s Youth Business Loan are FREE OF COST - 11
Pre-feasibility Study Day Care Center
1 13 3. . A AN NN NE EX XU UR RE E
1 13 3. .1 1 I In nc co om me e S St t a at te em me en nt t



Calculations SMEDA
Income Statement
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Revenue 2,880,000 3,432,000 4,065,600 4,791,600 5,622,144 6,570,881 7,653,144 8,418,458 9,260,304 10,186,334
Cost of sales
Operationcosts1(direct labor) 840,000 1,082,400 1,190,640 1,309,704 1,651,505 1,816,655 2,253,426 2,478,768 2,726,645 2,999,309
Total cost of sales 840,000 1,082,400 1,190,640 1,309,704 1,651,505 1,816,655 2,253,426 2,478,768 2,726,645 2,999,309
GrossProfit 2,040,000 2,349,600 2,874,960 3,481,896 3,970,639 4,754,226 5,399,718 5,939,690 6,533,659 7,187,025
General administration &selling expenses
Administrationexpense 360,000 396,000 435,600 479,160 527,076 579,784 637,762 701,538 771,692 848,861
Buildingrental expense 660,000 726,000 798,600 878,460 966,306 1,062,937 1,169,230 1,286,153 1,414,769 1,556,245
Electricityexpense 480,000 528,000 580,800 638,880 702,768 773,045 850,349 935,384 1,028,923 1,131,815
Water expense 36,000 39,600 43,560 47,916 52,708 57,978 63,776 70,154 77,169 84,886
Gasexpense 84,000 92,400 101,640 111,804 122,984 135,283 148,811 163,692 180,061 198,068
Promotional expense 57,600 68,640 81,312 95,832 112,443 131,418 153,063 168,369 185,206 203,727
Depreciationexpense 96,200 96,200 96,200 96,200 111,427 111,427 111,427 111,427 111,427 111,427
Amortizationof pre-operatingcosts 22,073 22,073 22,073 22,073 22,073 - - - - -
Miscellaneousexpense1 60,000 66,000 72,600 79,860 87,846 96,631 106,294 116,923 128,615 141,477
Subtotal 1,855,873 2,034,913 2,232,385 2,450,185 2,705,631 2,948,501 3,240,712 3,553,641 3,897,862 4,276,505
OperatingIncome 184,127 314,687 642,575 1,031,711 1,265,009 1,805,724 2,159,006 2,386,049 2,635,797 2,910,519
EarningsBeforeInterest & Taxes 184,127 314,687 642,575 1,031,711 1,265,009 1,805,724 2,159,006 2,386,049 2,635,797 2,910,519
Interest expenseonlongtermdebt (Project Loan) 80,105 73,337 64,442 54,808 44,374 33,075 20,838 7,585 - -
Interest expenseonlongtermdebt (WorkingCapital Loan) 67,977 62,233 54,685 46,509 37,656 28,067 17,683 6,436 - -
Subtotal 148,082 135,570 119,126 101,317 82,030 61,142 38,520 14,021 - -
EarningsBeforeTax 36,045 179,117 523,449 930,394 1,182,979 1,744,582 2,120,485 2,372,028 2,635,797 2,910,519
Tax - - 12,345 62,059 99,947 196,416 271,597 321,905 381,449 450,130
NET PROFIT/(LOSS) AFTER TAX 36,045 179,117 511,104 868,335 1,083,032 1,548,166 1,848,889 2,050,123 2,254,348 2,460,390
SMEDA Services / Information related to PM’s Youth Business Loan are FREE OF COST - 12
Pre-feasibility Study Day Care Center
1 13 3. .2 2 B Ba al l a an nc ce e S Sh he ee et t


Calculations SMEDA
Balance Sheet
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Current assets
Cash& Bank 250,000 338,318 364,984 699,934 1,214,053 2,082,290 3,363,038 4,911,256 6,624,518 8,848,815 12,976,877
Pre-paidbuildingrent 660,000 726,000 798,600 878,460 966,306 1,062,937 1,169,230 1,286,153 1,414,769 1,556,245 -
Total Current Assets 910,000 1,064,318 1,163,584 1,578,394 2,180,359 3,145,227 4,532,268 6,197,410 8,039,286 10,405,061 12,976,877
Fixed assets
Machinery& equipment 369,000 332,100 295,200 258,300 373,666 321,540 269,413 217,286 165,160 113,033 60,907
Furniture& fixtures 588,000 529,200 470,400 411,600 352,800 294,000 235,200 176,400 117,600 58,800 -
Officeequipment 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 -
Total FixedAssets 962,000 865,800 769,600 673,400 729,466 618,040 506,613 395,186 283,760 172,333 60,907
Intangible assets
Pre-operationcosts 110,365 88,292 66,219 44,146 22,073 - - - - - -
Legal, licensing, & trainingcosts - - - - - - - - - - -
Total IntangibleAssets 110,365 88,292 66,219 44,146 22,073 - - - - - -
TOTAL ASSETS 1,982,365 2,018,410 1,999,404 2,295,940 2,931,898 3,763,266 5,038,881 6,592,596 8,323,046 10,577,394 13,037,784
Current liabilities
Total Current Liabilities - - - - - - - - - - -
Other liabilities
Longtermdebt (Project Loan) 965,129 965,129 857,953 741,882 616,178 480,040 332,602 172,928 - - -
Longtermdebt (WorkingCapital Loan) 819,000 819,000 728,052 629,555 522,883 407,358 282,244 146,745 - - -
Total LongTermLiabilities 1,784,129 1,784,129 1,586,005 1,371,438 1,139,061 887,397 614,846 319,673 - - -
Shareholders' equity
Paid-upcapital 198,237 198,237 198,237 198,237 198,237 198,237 198,237 198,237 198,237 198,237 198,237
Retainedearnings 36,045 215,162 726,266 1,594,601 2,677,633 4,225,799 6,074,687 8,124,810 10,379,158 12,839,547
Total Equity 198,237 234,282 413,398 924,502 1,792,837 2,875,869 4,424,035 6,272,924 8,323,046 10,577,394 13,037,784
TOTAL CAPITAL AND LIABILITIES 1,982,365 2,018,410 1,999,404 2,295,940 2,931,898 3,763,266 5,038,881 6,592,596 8,323,046 10,577,394 13,037,784
Liabilities & Shareholders' Equity
Assets
SMEDA Services / Information related to PM’s Youth Business Loan are FREE OF COST - 13
Pre-feasibility Study Day Care Center
1 13 3. .3 3 S St t a at t e em me en nt t o of f C Ca as sh h F Fl l o ow w



Calculations SMEDA
Cash Flow Statement
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Operating activities
Net profit 36,045 179,117 511,104 868,335 1,083,032 1,548,166 1,848,889 2,050,123 2,254,348 2,460,390
Add: depreciationexpense 96,200 96,200 96,200 96,200 111,427 111,427 111,427 111,427 111,427 111,427
amortizationof pre-operatingcosts 22,073 22,073 22,073 22,073 22,073 - - - - -
Deferredincometax - - - - - - - - - -
Pre-paidbuildingrent (660,000) (66,000) (72,600) (79,860) (87,846) (96,631) (106,294) (116,923) (128,615) (141,477) 1,556,245
Cashprovidedbyoperations (660,000) 88,318 224,790 549,517 898,762 1,119,901 1,553,299 1,843,392 2,032,934 2,224,298 4,128,062
Financing activities
Project Loan- principal repayment - (107,175) (116,071) (125,705) (136,138) (147,437) (159,675) (172,928) - -
WorkingCapital Loan- principal repayment - (90,948) (98,497) (106,672) (115,526) (125,114) (135,499) (146,745) - -
Additionsto Project Loan 965,129 - - - - - - - - - -
Additionsto WorkingCapital Loan 819,000 - - - - - - - - - -
Issuanceof shares 198,237 - - - - - - - - - -
Cashprovidedby/ (usedfor) financingactivities 1,982,365 - (198,123) (214,568) (232,377) (251,664) (272,552) (295,173) (319,673) - -
Investing activities
Capital expenditure (1,072,365) - - - (152,266) - - - - - -
Acquisitions
Cash(usedfor) / providedbyinvestingactivities (1,072,365) - - - (152,266) - - - - - -
NET CASH 250,000 88,318 26,666 334,949 514,119 868,237 1,280,747 1,548,219 1,713,261 2,224,298 4,128,062
SMEDA Services / Information related to PM’s Youth Business Loan are FREE OF COST - 14
Pre-feasibility Study Day Care Center
1 13 3. .4 4 U Us se ef f u ul l P Pr ro oj j e ec ct t M Ma an na ag ge em me en nt t T Ti i p ps s

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.

Marketing
• Ads & P.O.S. Promotion: Business promotion and dissemination through banners, and
launch events is highly recommended. Product brochures from good quality service
providers. Also, have facebook page which is updated regularly.

1 13 3. .5 5 U Us se ef f u ul l L Li i n nk ks s
• Prime Minister’s Office, www.pmo.gov.pk
• Small and Medium Enterprise Development Authority, www.smeda.org.pk
• The National Bank of Pakistan (NBP), www.nbp.com.pk
• The 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://www.moptt
• Government of Punjab, www.punjab.gov.pk
• Government of Sindh, www.sindh.gov.pk
• Government of Khyber Pakhtunkhwa, www.khyberpakhtunkhwa.gov.pk
• Government of Balochistan, www.balochistan.gov.pk
• Government of Gilgit Baltistan, www.gilgitbaltistan.gov.pk
• Government of Azad J ammu & Kashmir, www.ajk.gov.pk
• Trade Development Authority of Pakistan (TDAP), www.tdap.gov.pk
• Securities & Exchange Commission of Pakistan (SECP), www.secp.gov.pk
SMEDA Services / Information related to PM’s Youth Business Loan are FREE OF COST - 15
Pre-feasibility Study Day Care Center
• Federation of Pakistan Chambers and Commerce and Industries (FPCCI),
www.fpcci.com.pk
• State Bank of Pakistan (SBP), www.sbp.org.pk
• All Pakistan Private Schools Welfare Association (APPSWA), www.appswa.com.pk
• Montessori Education Pakistan, www.montesoori.edu.pk
• Pakistan Montessori Association, www.pakistanmontessoriassociation.org/


1 14 4. . K KE EY Y A AS SS SU UM MP PT TI IO ON NS S
P Pa ar rt t i i c cu ul l a ar r A As ss su um mp pt t i i o on ns s
S Sa al le es s P Pr ri ic ce e G Gr ro ow wt th h R Ra at te e 1 10 0 % % p pe er r y ye ea ar r
C Ca ap pa ac ci it ty y U Ut ti il li iz za at ti io on n G Gr ro ow wt th h R Ra at te e 5 5 % % p pe er r y ye ea ar r
I In nc cr re ea as se e i in n u ut ti il li it ti ie es s ( (E El le ec ct tr ri ic ci it ty y/ /W Wa at te er r/ /G Ga as s 1 10 0 % % p pe er r y ye ea ar r
D De eb bt t / / E Eq qu ui it ty y R Ra at ti io o 9 90 0 : : 1 10 0
D De ep pr re ec ci i a at t i i o on n R Ra at t e e
M Ma ac ch hi in ne er ry y 1 10 0 % % p pe er r y ye ea ar r
O Of ff fi ic ce e F Fu ur rn ni it tu ur re e & & E Eq qu ui ip pm me en nt t 1 10 0 % % p pe er r y ye ea ar r
L Lo oa an n P Pe er ri io od d 8 8 Y Ye ea ar rs s i in nc cl lu us si iv ve e o of f 1 1 y ye ea ar r g gr ra ac ce e p pe er ri io od d
L Lo oa an n i in ns st ta al ll lm me en nt ts s M Mo on nt th hl ly y
E En nr ro ol lm me en nt t C Ca ap pa ac ci it ty y 4 40 0
E En nr ro ol lm me en nt t C Ca ap pa ac ci it ty y Y Ye ea ar r 1 1 2 24 4
F Fi in na an nc ci ia al l C Ch ha ar rg ge es s ( (L Lo oa an n R Ra at te e) ) 8 8 % % p pe er r y ye ea ar r

SMEDA Services / Information related to PM’s Youth Business Loan are FREE OF COST - 16

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