SMEDA High School

Pre-Feasibility Study

HIGH SCHOOL

Small and Medium Enterprises Development Authority

Government of Pakistan

HTUwww.smeda.org.pkUTH

HEAD OFFICE 6P

thP Floor LDA Plaza, Egerton Road, Lahore 54000, Pakistan

Tel: (042) 111-111-456, Fax: (042) 6304926-7 [email protected]

REGIONAL OFFICE

PUNJAB REGIONAL OFFICE

SINDH REGIONAL OFFICE

NWFP REGIONAL OFFICE

BALOCHISTAN

8 P

thP Floor, LDA Plaza,

Egerton Road, Lahore. Tel: (042) 111-111-456 Fax: (042) 6304926-7

[email protected]

5 P

THP Floor, Bahria

Complex II, M.T. Khan Road, Karachi.

Tel: (021) 111-111-456 Fax: (021) 5610572

[email protected]

Ground Floor State Life Building

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

Fax: (091) 286908 [email protected]

Bungalow No. 15-A Chaman Housing Scheme

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

Fax: (081) 831922 [email protected]

June 2010

Pre-Feasibility Study High School

1

PREF-50/June, 2010/Rev 3

DISCLAIMER

The purpose and scope of this information memorandum is to introduce the subject

matter and provide a general idea and information on the said area. All the material

included in this document is based on data/information gathered from various

sources and is based on certain assumptions. 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 does not assume any liability for any

financial or other loss resulting from this memorandum in consequence of

undertaking this activity. The prospective user of this memorandum is encouraged to

carry out additional diligence and gather any information he/she feels necessary for

making an informed decision.

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

HTUwww.smeda.org.pk UTH

DOCUMENT CONTROL

Document No. PREF-50

Revision 3

Prepared by SMEDA-Punjab

Issue Date August, 2002

Revised on June, 2010

Issued by Library Officer


2


TU1UT TUEXECUTIVE SUMMARYUT ................................................................................ 4

TU2UT TUINTRODUCTION TO SMEDAUT ........................................................................ 5

TU3UT TUPURPOSE OF THE DOCUMENTUT ................................................................... 5

TU4UT TUCRUCIAL FACTORS & STEPS IN DECISION MAKING UT ......................... 6 TU4-1 UT TUSWOT ANALYSISUT ............................................................................................ 6

TU5UT TUPROJECT PROFILEUT ......................................................................................... 7 TU5-1 UT TUOPPORTUNITY RATIONALE UT.............................................................................. 7

TU5-2 UT TUPROJECT BRIEF UT................................................................................................ 9

TU5-3 UT TUPROJECT COST UT .............................................................................................. 10

TU5-4 UT TUPROJECT RETURNS UT ........................................................................................ 10

TU5-5 UT TUVIABLE SIZEUT.................................................................................................. 10

TU5-6 UT TUPROPOSED CAPACITY AND PRODUCT MIXUT..................................................... 10

TU5-7 UT TUPROPOSED BUSINESS LEGAL STATUS UT ............................................................ 11

TU6UT TUINDUSTRY ANALYSIS UT .................................................................................. 11

TU7UT TUMARKET ANALYSIS UT ..................................................................................... 14

TU8UT TUKEY SUCCESS FACTORS UT............................................................................. 14

TU9UT TUREGULATIONSUT ............................................................................................... 15

TU10UT TUHUMAN RESOURCE UT .................................................................................. 16

TU11UT TUEQUIPMENT/FURNITURE REQUIREMENT UT ........................................ 16

TU12UT TUINFRASTRUCTURE UT.................................................................................... 19

TU13UT TUFINANCIAL ANALYSISUT ............................................................................. 21

TU13-1UT TUPROJECT DETAILUT........................................................................................ 21

TU13-2UT TUPROJECTED INCOME STATEMENT UT............................................................... 22

TU13-3UT TUPROJECTED BALANCE SHEETUT ..................................................................... 23

TU13-4UT TUPROJECTED CASH FLOW STATEMENT UT ........................................................ 24

TU13-5UT TUFEE INCOME UT............................................................................................... 25


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TU13-6UT TUESTIMATED EXPENSES UT ............................................................................... 27

TU13-7UT TUSUBJECT DETAILUT........................................................................................ 29

TU14UT TUKEY ASSUMPTIONS UT................................................................................... 30 TU14-1UT TUFINANCIAL ASSUMPTIONS UT.......................................................................... 30

TU14-2UT TUMISCELLANEOUS ASSUMPTIONS UT ................................................................ 30

TU15UT TUANNEXUREUT .................................................................................................. 31

TU1)UT TUSchool Furniture Suppliers and MarketsUT.................................................. 31

TU2)UT TUIT Equipment MarketsUT .............................................................................. 31

TU3)UT TUElectrical Equipment and Appliances Suppliers and MarketsUT ................. 31

TU4)UT TUEducational Experts/ConsultantsUT ............................................................. 32

TU5)UT TUTax deduction income slabsUT ...................................................................... 33


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11 EEXXEECCUUTTIIVVEE SSUUMMMMAARRYY This SME venture entails establishing a high school in Lahore, the second largest city of Pakistan. The school will be catering to children of middle to low income economic stratum, recognizing the need for a high caliber yet low-cost institute. Being cognisant of the financial constraints of most parents, the school will charge an affordable fee. The school will practice advanced educational procedures – using modern teaching methodology, covering an extensive curriculum which is up-to-date with international standards, and hiring qualified and experienced faculty. The school will have state-of-art infrastructural facilities including spacious classrooms, well-equipped science and computer laboratories, and a resourceful library.

Evident from the performance of education sector in Pakistan, quality education is a luxury only the rich can afford. Despite the efforts made by the government, most public schools are failing due to shortage of qualified or committed teachers, limited curriculum and out-dated teaching methods. With inadequate financial resources of the government, private sector investment is the only hope left for the revival of the education sector. Primary to high school level education is most crucial for initial development of a child and his future as a professional. Admission to the best colleges and universities is mostly dependant on the quality of education a student receives till his matriculation. Keeping this in mind, establishing high schools will be the most beneficial decision an entrepreneur can take to help rebuild this sector.

The total project cost for setting up this school is estimated at Rs. 6.367 million. The project is financed through 50% debt and 50% equity. The project NPV is around Rs. 14.736 million, with an IRR of 65% and payback period of 2.38 years. The legal business status of this project is proposed as ‘Sole Proprietorship’.

The overall proposed capacity of the school is 735 students. Each class level from Nursery – Matriculation has two sections. The maximum number of enrollments per class is limited to 30 students, to keep a manageable student-teacher ratio and to allow maximum attention for each student. The proposed building will be acquired on rent, covering an area of 3-Kanals to accommodate the proposed student strength.


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22 IINNTTRROODDUUCCTTIIOONN TTOO SSMMEEDDAA

The Small and Medium Enterprises Development Authority (SMEDA) was established with the objective to provide fresh impetus to the economy through the launch of an aggressive SME support program.

Since its inception in October 1998, SMEDA had adopted a sectoral SME development approach. A few priority sectors were selected on the criterion of SME presence. In depth research was conducted and comprehensive development plans were formulated after identification of impediments and retardants. The all-encompassing sectoral development strategy involved recommending changes in the regulatory environment by taking into consideration other important aspects including finance, marketing, technology and human resource development.

SMEDA has so far successfully formulated strategies for industries such as horticulture, including export of fruits and vegetables, marble and granite, gems and jewelry, marine fisheries, leather and footwear, textiles, surgical instruments, transport, dairy etc. Whereas the task of SME development at a broader scale still requires more coverage and enhanced reach in terms of SMEDA’s areas of operation.

Along with the sectoral focus a broad spectrum of business development services is also offered to the SMEs by SMEDA. These services include identification of viable business opportunities for potential SME investors. In order to facilitate these investors, SMEDA provides business guidance through its help desk services as well as development of project specific documents. These documents consist of information required to make well-researched investment decisions. Pre-feasibility studies and business plan development are some of the services provided to enhance the capacity of individual SMEs to exploit viable business opportunities in a better way.

This document is in the continuation of this effort to enable potential investors to make well-informed investment decisions.

33 PPUURRPPOOSSEE OOFF TTHHEE DDOOCCUUMMEENNTT This particular pre-feasibility comes under the ‘Education’ sector, a sub-sector of the ‘Service’ division and is in regard to setting up a “High School” in any big city of Pakistan.

The objective of this pre-feasibility study is primarily to provide an overview of the high school business. This project pre-feasibility may form the basis of an important investment decision and in order to serve this objective, the document covers various aspects of the business concept development, start-up, marketing, finance and business management.


6


44 CCRRUUCCIIAALL FFAACCTTOORRSS && SSTTEEPPSS IINN DDEECCIISSIIOONN MMAAKKIINNGG

44--11 SSWWOOTT aannaallyyssiiss

Strengths Low student-teacher ratio Recognized by the BISE English as a medium of instruction Affordable to middle income group Accessible location Well-trained and qualified teaching staff Up-to-date and extensive curriculum Well maintained order and discipline Environment conducive to joyful learning Adequate security measures Availability of adequate and modern facilities Contribution to societal development

Weakness Time required for gaining recognition in the society Higher rental cost for accessible locations Insufficient area for playing fields to practice sports such as cricket, hockey

etc. Opportunities

Overall increase in demand, linked with the growing population. Government incentives and policies conducive for private investment in

education sector Gap between number of school going age children and actual enrolments in

schools Growing general public awareness (especially in urban areas) about

importance of quality education Limited access to affordable, quality education. Minimal budget allocation by government to education sector Limited number of government/public schools Poor facilities in government schools

Threats

New entrants can easily share the business Difficulty in retaining qualified teachers Revival of public/government schools in the future through effective

government policies and regulations.


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55 PPRROOJJEECCTT PPRROOFFIILLEE

55--11 OOppppoorrttuunniittyy RRaattiioonnaallee A well-educated and well-trained population is essential for the social and economic well-being of a country. Globally, it has been observed that countries attach the highest priority to education since the development of other sectors like health, agriculture and industry is dependent on the development of education. In the face of growing demand for education world over, it is readily conceded that investment in the quantity and quality of education contributes greatly to the accumulation of efficient human resource and sustained socio-economic growth.

With growing public awareness, the overall demand for education is already on the rise and is likely to increase further over the years. The gap between the number of school-going age children and the actual enrollments in schools calls for immediate attention to increase the supply of schools.

The Government of Pakistan accepts education as fundamental right for its people and is commitment to provide education to every citizen. But unfortunately, the Government faces constraints due to limited financial resources available for the education sector.

Children of relevant age group have inadequate access to education. Educational institutions lack basic facilities. The target of minimum essential requirement of competencies for quality education has not yet been achieved. Educational institutions face shortage of qualified and motivated teachers, especially female teachers. Therefore, the private sector investment is being encouraged with various incentives to lower the burden of the Government.

During the fiscal year 2008-2009, the total education budget was Rs. 275.5 billion, including development budget of Rs. 75.1 billion and recurring budget of Rs 200.4 billion. The education budget as percentage of GDP, for the past ten years, is given in Table below.

Table 5-1: Expenditure on Education during 2000-01 to 2008-09 TP

1PT

(Billion Rs.)

Year Current Development Public sector % of GDP % of Total Expenditure

2000-01 69.5 6.4 75.9 1.82 10.62001-02 70.4 8.5 78.9 1.79 9.52002-03 79.5 10.4 89.9 1.86 10.02003-04 94.3 29.9 124.2 2.20 13.02004-05 106.6 33.4 140.0 2.15 12.5

TP

1PTSource: Economic Survey of Pakistan 2008-2009


8


2005-06 128.9 41.9 170.8 2.24 12.22006-07 159.9 56.6 216.5 2.50 12.02007-08 190.2 63.5 253.7 2.47 9.8

2008-09 TP

2PT 200.4 75.1 275.5 2.10 11.52

Although, traditionally, private schools had been a luxury only the rich can afford, this is not necessarily the case in current re-emergence of the private sector in Pakistan's education system.

Keeping in view the significant role of the private sector in promotion of education at various levels, Pakistani Government has introduced the concept of Public-Private Partnership. Government incentives to private sector educational institutions are:TP

3PT

Provision of free land, or land on concessional rates in rural/urban areas Exemption of 5% - 80% income tax to private sector institutions for their faculty,

management and support staff Utilities availability on non-commercial rates Provision of concessional financing for establishing rural schools Exemption of custom duties on import of educational equipment Undertaking necessary legislation to give Charter to private sector institutions

and facilitating their day to day affairs

Private schooling has now become important for the country. Enrolment in private primary schools was in the order of 29 percent of total enrolment in 2007-08. During 2007-08, at the middle school level, the private sector had a share of 31 percent of total enrolment. At the secondary and higher secondary level in the same year, the private sector share was 29 percent and 18 percent respectively of the total enrolment.TP

4PT

TP

2PT Private sector data is estimated

TP

3PT Education sector reforms Action Plan 2001- 2005 (http://www.moe.gov.pk/esrdocs.htm)

TP

4PT Pakistan Education Statistics, 2007-08 (www.moe.gov.pk)


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Figure 5-1: Private and Government school enrollment

EnrollmentPrimary level

Private Schools

*29%

Govt. Schools

71%

EnrollmentMiddle level

Private Schools

*31%

Govt. Schools

69%

EnrollmentSecondary level

Private Schools

*29%

Govt. Schools

71%

EnrollmentHigher Secondary level

Private Schools* 18%

Govt. Schools

82%

55--22 PPrroojjeecctt BBrriieeff

This study describes the investment opportunity for setting up of a high school in any big city of Pakistan to provide education to the children of middle and lower middle income group. The school will start its operation by starting classes from Nursery to Matriculation (Secondary school). Providing education from primary level onwards ensures consistent quality of education from an early stage.

By offering quality education and modern facilities, the school is expected to earn early recognition and parent’s trust and preference. The school can be opened in big cities like Karachi, Lahore, Islamabad, Peshawar, Quetta, Multan, Hyderabad, Rawalpindi, Faisalabad, etc. The area should be selected near the residents of middle income group.


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55--33 PPrroojjeecctt CCoosstt Initial project cost is estimated at Rs. 6.367 million. The financial structure for the proposed pre-feasibility is assumed to consist of 50% debt and 50% equity. However this composition of debt and equity can be changed as per the requirement of the investor.

55--44 PPrroojjeecctt RReettuurrnnss The project returns detail is given in the following table:

Table 5-2: Project Returns

Equity Project Net Present Value 14,718,882 14,736,057Internal Rate of Return 96% 65%Payback Period (Years) 2.02 2.38

55--55 VViiaabbllee SSiizzee The minimum viable size for this particular school is around 720 students.

55--66 PPrrooppoosseedd CCaappaacciittyy aanndd PPrroodduucctt MMiixx For the purpose of this feasibility study, strength of 735 students has been proposed. The first year student intake is 294 students, increasing gradually to 735 students in the fifth year. A student dropout rate is assumed to be 5%, and new student intake is 70%.

A total of 24 classrooms have been proposed for this school, each class level (Nursery – Class X) has two sections. Maximum capacity per section is 30 students. Subjects offered in Matriculation will be Science (Physics, Chemistry and Biology) and Computer Sciences (Physics, Chemistry and Computer Studies).

Schools in Pakistan typically have classes from Nursery to Matriculation; therefore getting admission at Nursery level is relatively easier than at a later stage. This particular school will follow the same pattern. The school will begin its operation by starting classes from Nursery to Matriculation. Providing education from elementary level onwards not only ensures consistent quality of education from an early stage, but also makes it convenient because the admission process does not need to be repeated before college, as would be the case if the school only provided education till primary or middle level.

A table of the number of students taken at each class level is given below:


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Table 5-3: Year-wise Number of Students

Students/Year Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

Year 9

Year 10

Nursery- Prep 78 89 111 124 135 135 135 135 135 135 Class I - IV 120 158 198 221 240 240 240 240 240 240 Class V- VIII 96 158 198 221 240 240 240 240 240 240Class IX – X - 79 99 110 120 120 120 120 120 120Total students 294 485 605 676 735 735 735 735 735 735

55--77 PPrrooppoosseedd BBuussiinneessss LLeeggaall SSttaattuuss The legal structure of the business entity can either be sole proprietorship or partnership. Although the selection totally depends upon the choice of the entrepreneur, this particular feasibility is based on a Sole Proprietorship.

66 IINNDDUUSSTTRRYY AANNAALLYYSSIISS In Pakistan, education remains inequitably distributed among various income groups and regions. Literacy and participation rates are below those in other South Asian countries with similar level of economic development. Due to financial constraints and requirement of managerial capacity, education targets have remained unaccomplished. Programs approved by the Government were not completed because of inadequate resource allocation. The slow implementation of programs/projects undermined the efficiency of the system at all levels, significantly in terms of qualitative improvement.

Education is the key to change and progress and the Government of Pakistan has adopted this sector as one of the pillars for poverty reduction and benefit of masses. The Government is committed to provide best educational facilities to its people within the minimum possible time, by introducing its incentive for private investment and the concept of Public-Private partnership as described earlier in the report. The Education system of Pakistan is divided into the following tiers:

Table 6-1: Education System in Pakistan TP

5PT

Level Classes Student Age Duration Elementary (Montessori) Playgroup, Kindergarten 3-5 years 2 yearsPrimary I-V 5 years 5 yearsMiddle VI-VIII 10 years 3 yearsSecondary IX-X 13 years 2 yearsHigher Secondary XI-XII 16 years 2 yearsB.A (Graduate Degree) 2 yearsM.A (Post-graduate Degree) 2 yearsM. Phil/ Ph.D. 3 years TP

5PT Educational Guide of Pakistan (2007-08)


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According to Pakistan Social and Living Measurement (PSLM) Survey, the over all literacy rate, in 2007-08 was 56% compared to 55% in 2006-07. Literacy remains higher in urban areas (71%) than in rural areas (49%) and more in men (69%) compared to women (44%).TP

6PT Comparatively high incidence of illiteracy among

female may be due to pervasive gender inequality and limited access to the available educational facilities. A comparative picture of literacy rates of both sexes by province and rural/urban division is given in table below:

Table 6-2 Literacy Rates in PercentageTP

7PT

2006-07 2007-08 Province/Area Total Male Female Total Male Female

Pakistan 55 67 42 56 69 44RURAL 48 63 32 49 65 36URBAN 73 80 66 71 81 65Balochistan 42 58 22 46 66 23Rural 33 49 13 34 51 15Urban 60 75 41 60 78 39NWFP 47 67 28 49 68 33Rural 47 68 26 48 68 30Urban 64 78 49 65 80 52Punjab 58 67 48 59 70 48Rural 53 66 40 55 68 44Urban 75 81 69 74 80 69Sindh 55 67 42 56 69 42Rural 37 54 17 41 59 22Urban 74 81 65 74 82 66 The government is making serious efforts to improve the access of education by enhancing educational facilities. The rural- urban distribution of both public and private institutions and enrollments is given below (Table 6-3 to 6-5):TP

8PT

According to the Economic Survey of Pakistan 2008-09, Pakistan has a total of 146,603 primary schools in 2007-08 with an enrollment of 17.228 million students and 438,823 teachers, which gives a student-teacher ratio of approximately 39:1.

TP

6PT Economic Survey of Pakistan 2008-09 (www.finance.gov.pk)

TP

7PT Economic Survey of Pakistan 2008-09 (www.finance.gov.pk)

TP

8PT Pakistan Education Statistics, 2007-08 (www.moe.gov.pk)


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Table 6-3 Total Primary Schools and Enrollment

Schools Enrollment Urban Rural Total Urban Rural Total

Public Sector 11,859 115,612 127,471 2,287,871 9,592,802 11,880,673Private Sector 8,297 8,873 17,170 3,116,213 1,956,583 5,072,796Other PublicTP

9PT 600 1,362 1,962 206,511 68,294 274,805

Total 20,756 125,847 146,603 5,610,595 11,617,679 17,228,274

At the middle school level 489 new schools have been established since July 2007. The number of middle schools in 2007-2008 is now 40,829 both in rural and urban with 320,609 teachers functional and total enrollment of 5.362 million students, giving a student-teacher ratio of 17:1.

Table 6-4 Total Middle Schools and Enrollment


Public Sector 1,994 13,708 15,702 1,278,565 2,314,842 3,593,407Private Sector 12,823 12,024 24,847 1,096,995 571,548 1,668,543Other Public 238 42 280 88,133 12,635 100,768Total 15,055 25,774 40,829 2,463,693 2,899,025 5,362,718

With 353 new schools added since July 2007 a total of 23,964 secondary schools with 374,249 teachers are functional in 2007-08. Total student enrollment is 2.426 million giving an approximate student-teacher ratio of 7:1.

Table 6-5 Total High Schools and Enrollment


Public Sector 2,528 7,059 9,587 809,765 858,855 1,668,620Private 9,583 4,470 14,053 532,285 170,661 702,946Other Public 270 54 324 47,533 7,156 54,689Total 12,381 11,583 23,964 1,389,583 1,036,672 2,426,255

As shown in the tables above, with the exception of primary level schools, the numbers of school under the private sector category are more than in the public sector. Irrespective, the number of enrollments are higher in the public sector schools. It is evident from these figures that most of Pakistan’s population, despite the availability, cannot afford private schools. Conclusively, quality education is a TP

9PT Other public sector means institutions managed by Ministries/Divisions/ Department other than the

Ministry of Education/Education Departments


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luxury only few can afford. The best schools of Lahore not only charge a high tuition fee but also have limited admissions and majority of children have to settle for substandard quality of education.

77 MMAARRKKEETT AANNAALLYYSSIISS Currently three categories of schools are being run in Pakistan, catering to three main segments of the market: high, middle and low income groups. The schools, which serve the high-income groups, are running in the private sector. These schools usually charge fee in the range of Rs. 4000 to Rs. 12,000 per month per student e.g. Lahore Grammar School, Beaconhouse School System, National Grammar School and Aitchison etc. These schools have large facilities and enjoy a high repute due to their modern system of education, use of advanced teaching techniques and qualified and specialized faculty. Most private schools fall in the second category (middle income) having a monthly fee range from Rs. 2500 to Rs. 4000 e.g. Convent of Jesus & Mary and Defence Public School. The third category is the low-income group with a monthly fee between Rs. 500 to Rs. 2500, e.g. Educators and Cathedral. Most schools belonging to this category have facilities even less than the minimum requirement. These schools have less space per student and high student teacher ratio.

This proposed school caters to the needs of children of middle income group. There is stiff competition amongst the school running in the market. Parents are curious about the future of their children so they contemplate extensively before admitting their children in any school. Following are the main factors (not conclusive) on the basis of which parents make their choice of schools.

1. Distance from home 2. School track record/history 3. General reputation 4. Tuition Fee 5. Qualification and experience of the school head and other faculty. 6. Physical infrastructural facilities. 7. Courses offered and medium of instruction.

Besides the above, there are some other subjective, social and status considerations which also play an important role in parent’s decision making.

88 KKEEYY SSUUCCCCEESSSS FFAACCTTOORRSS Considering the current education situation of Pakistan; it is essential that intensive investment is made in the right type of education, yielding high returns in terms of enrollment and achievement rates. For any school to be successful high priority should be attached to providing education of substantial quality.

The key lies in careful selection of education curriculum and creative teaching methodology. A well researched, extensive curriculum and modern teaching tools should be followed.


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Children entering school in nursery, prep, class 1, and class 2, from age three to seven, are capable of learning and absorbing material very quickly. At this level, experienced and qualified teachers are mandatory to the development of the child’s communication and social skills.

A well qualified faculty sets an institution apart from all others. Teachers that are willing to work intensively with students to induce an atmosphere of learning would be an asset to any school.

The importance of training the teaching staff cannot be emphasized enough. Teacher trainings should be a regular practice to ensure consistent quality of education. Additionally, the success of a school hinges on the dedication, competence and constant supervision by the principal, who should evaluate the performance of teachers and students through regular checks.

Introducing English at an early stage is a feature especially attractive to parents. "English medium" schooling is sought after by parents of all income groups. Parents can perceive the opportunities the knowledge of English can open up for their children.

In addition to the above factors, the teacher student ratio should be kept at minimum level. The area of the classrooms should be in line with the number of students in each classroom. Moreover, the classrooms should be substantially ventilated.

For pre-school students, classrooms should be well equipped with teaching as well as extracurricular activity aids.

Parents are conscious about the well being and safety of their children at schools, therefore, it is suggested that the school ensures security. The school should preferably be located in a less populated area or at a location with minimum traffic flow.

Teacher parent interaction should also be a regular feature of the education system.

99 RREEGGUULLAATTIIOONNSS The schools are required to be registered with the Education Department (Provincial) in the office of Education Directorate Schools. The application is to be submitted on a prescribed form and can be obtained from the department.

The next process is the recognition of institution from the relevant Board of Intermediate and Secondary Education (BISE). The detailed regulations, rules and requirement of minimum infrastructural facilities along with application form can be obtained from the BISE office. Contact Information of BISE is given below:

Board of Intermediate & Secondary Education

Address: 86 Mozang Road, Lahore.

Phone No: (92) (42) 99200192-197

Fax No: (92) (42) 99200113


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1100 HHUUMMAANN RREESSOOUURRCCEE The quality of Human Resource ensures success and survival of any organization. Hiring quality human resource will ascertain success of this high school. For progression of the school it is important to manage human resource systematically and efficiently. The qualification and experience of the staff should be well scrutinized. The number of administration and maintenance staff remain the same for the ten year time period. Experienced teachers and subject specialist are hired yearly, as students add up and consequently additional sections become operational. Key personnel proposed for the school and their salary structure are given in table 10-1:

Table 10-1 Staff Acquisition Plan based on first year requirement

1111 EEQQUUIIPPMMEENNTT//FFUURRNNIITTUURREE RREEQQUUIIRREEMMEENNTT Detail of total equipment/furniture requirement and investment for the project is given below. Supplier information of equipment and furniture is provided in the Annexure.

Table 11-1 IT Equipment

IT EQUIPMENT Quantity Unit Cost Amount (Rs.) Computers - office 4 25,000 100,000Computers - laboratory 15 25,000 375,000Networking Cost Lump sum 50,000 50,000

Positions Number Salary/month Total Salary/Year Administrative Staff (Rs.) (Rs.)

Principal 1 20,000 240,000Accountant 1 12,000 144,000Teachers Coordinator 1 15,000 180,000Librarian 1 10,000 120,000Lab In-charge 2 8,000 192,000Helpers / Peon 2 7,000 168,000Attendants 2 7,000 168,000

Faculty Members: Subject Specialist - 15,000 -Senior Teacher 9 12,000 1,296,000Junior Teacher 8 10,000 960,000Games Teacher 1 12,000 144,000Pre-School Teacher 6 10,000 720,000

Maintenance Staff Guards 3 8,000 288,000Cleaner 2 7,000 168,000Electrician 1 8,000 96,000

Total: 40 161,000 4,884,000


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Printer 2 10,000 20,000Scanner 1 5,000 5,000Server 1 50,000 50,000UPS 20 7,500 150,000

Total 750,000

Table 11-2 Office/School Equipment

OFFICE/SCHOOL EQUIPMENT Quantity Unit Cost Amount (Rs.) Air Conditioner 3 40,000 120,000Ceiling Fan 64 2,200 140,800Exhaust Fan 8 1,500 12,000Energy Saver 149 185 27,565Heater 3 1,500 4,500Science Lab Equipment Lump sum 100,000 100,000Generator – 30kVA 1 300,000 300,000Water Tank & Electric Motor 1 30,000 30,000Water Coolers 2 20,000 40,000Refrigerator 1 22,000 22,000Microwave 1 7,500 7,500Electric Kettle 1 2,000 2,000Fire Extinguisher 4 15,000 60,000Vacuum Cleaner 1 12,000 12,000Telephone/Facsimile 1 12,000 12,000Wall Clock 28 500 14,000

Security Equipment CCTV set – 4 cameras, 1 TV 1 60,000 60,000Concrete Barrier 5 4,000 20,000Metal Detector 2 3,500 7,000Barbed Wire Lump sum 7,000 7,000

Library Books - 100,000 100,000Total 1,098,365

Table 11-3 Furniture and Fixtures

FURNITURE AND FIXTURES Total Qty Unit Cost (Rs.) Amount (Rs.) Principal’s office

Table and chair 1 20,000 20,000Additional chairs 6 3,000 18,000Cupboard 1 10,000 10,000


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Staffroom Long table 1 20,000 20,000Chairs 24 1,500 35,250Cupboard 2 7,500 15,000Softboard 2 1,800 3,600

Admin block Table 1 2,500 2,500Chairs 2 1,500 3,000Cupboard 1 7,500 7,500

Nursery & Prep Class Round Tables 23 2,000 45,000Chairs 135 800 108,000

Junior Section Student desk and chair 240 2,000 480,000

Senior Section Student desk and chair 360 2,000 720,000

Classroom Cupboard 25 5,000 122,500Whiteboard 25 2,200 53,900Teacher Table and chair 25 2,500 61,250

Computer Laboratory Computer Tables 15 1,500 22,500Chairs 30 1,500 45,000Cupboard 1 5,000 5,000Softboard 1 1,800 1,800Whiteboard 1 2,200 2,200

Science Laboratory Long tables 6 15,000 90,000Stools 60 800 48,000Storage Cupboard 4 7,500 30,000Whiteboard 1 2,200 2,200Softboard 1 1,800 1,800

Library Large Table 4 9,000 36,000Chairs 24 1,500 36,000Book Shelf 8 7,500 60,000Librarian’s table and chair 1 7,000 7,000

Reception Reception area furniture 1 15,000 15,000


19


Sports Equipment Sports equipment Lump sum 25,000 25,000See Saw 2 10,000 20,0004-feet slide 1 12,000 12,0006-feet slide 1 15,000 15,0008-feet slide 1 18,000 18,000Monkey bar 6x6 1 10,000 10,000Zigzag bridge 1 7,000 7,000Monkey jumping 1 12,000 12,000

Sanitary Items Sanitary fixture 12 25,000 300,000

Total furniture and fixtures 2,542,150

1122 IINNFFRRAASSTTRRUUCCTTUURREE Though ideally, a purpose built building can best suit a school, however any building in a peaceful environment can be rented out.

For the purpose of this study, the option of getting a two-story building for school on rent has been recommended. Monthly rent of the building is taken at Rs. 300,000 for an area of 3 kanals. Proposed areas within Lahore are Iqbal Town, Johar Town, Faisal Town, Saddar – Cantt, Wapda Town, and newly established housing schemes on Raiwind road and Ferozpur road.

Table 12-1 Area Requirements

Space Requirements Area/Room No. of Rooms Total Area Administrative Block (Sq. ft) (Sq. ft)

Principal’s office 150 1 150Admission office 80 1 80Accounts office 100 1 100Kitchen 50 1 50Lobby 100 1 100Store room 150 1 150Toilet 36 2 72

Junior Branch Classrooms 360 12 4,320Staffroom 125 1 125Toilet 30 6 180

Senior Branch Classrooms 360 12 4,320Staffroom 125 1 125Toilet 30 4 120


20


Science Laboratory 300 2 600Computer Laboratory 300 1 300Library 300 1 300Space for corridor & stairs - - 2,40010% Wall area - - 1,350

Total Covered Area 14,841Playground - - 6,320



21

1133 FFIINNAANNCCIIAALL AANNAALLYYSSIISS

1133--11 PPrroojjeecctt DDeettaaiill

Initial Investment

Capital Investment Rs. in actualsOffice school equipment &Library Books 1,098,365 Furniture & fixtures 2,542,150 Computers & equipment 750,000 Pre-operating costs 396,093 Total Capital Costs 4,786,608

Working Capital Rs. in actualsUpfront building rent 900,000 Upfront insurance payment 54,918 Cash 625,542 Total Working Capital 1,580,460

Total Investment 6,367,068

Initial Financing Rs. in actualsDebt 50% 3,183,534 Equity 50% 3,183,534

EQUITY

Internal Rate of Return 96%

Project Returns

65%2.382.02Payback Period (Yrs)

PROJECT14,736,057 14,718,882 Net Present Value



22

1133--22 PPrroojjeecctteedd IInnccoommee SSttaatteemmeenntt Income Statement

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10Revenue 11,133,000 18,335,835 23,076,659 26,537,165 30,168,318 31,135,686 32,692,471 34,327,094 36,043,449 37,845,621 Faculty Salary 3,660,000 7,299,600 8,319,960 9,311,676 10,242,844 11,267,128 12,393,841 13,633,225 14,996,547 16,496,202 Gross Profit 7,473,000 11,036,235 14,756,699 17,225,489 19,925,475 19,868,558 20,298,630 20,693,869 21,046,902 21,349,419 General administration & selling expenses

Administration expense 1,224,000 1,346,400 1,481,040 1,629,144 1,792,058 1,971,264 2,168,391 2,385,230 2,623,753 2,886,128 Building rental expense 3,600,000 3,960,000 4,356,000 4,791,600 5,270,760 5,797,836 6,377,620 7,015,382 7,716,920 8,488,612 Utilities - elec, gas, telephone 487,558 536,314 589,945 648,940 713,834 785,217 863,739 950,112 1,045,124 1,149,636 Diesel Expense for Generator 277,200 304,920 335,412 352,183 369,792 388,281 407,695 428,080 449,484 471,958 Internet & communication expense 24,000 25,200 26,460 27,783 29,172 30,631 32,162 33,770 35,459 37,232 Teacher training expense 36,000 37,800 39,690 41,675 43,758 45,946 48,243 50,656 53,188 55,848 Examination expense 108,000 113,400 119,070 125,024 131,275 137,838 144,730 151,967 159,565 167,543 Science lab expenses 90,000 94,500 99,225 104,186 109,396 114,865 120,609 126,639 132,971 139,620 School events & programmes 73,500 77,175 81,034 85,085 89,340 93,807 98,497 103,422 108,593 114,023 Computer lab expenses 18,000 18,900 19,845 20,837 21,879 22,973 24,122 25,328 26,594 27,924 Student welfare 12,000 12,600 13,230 13,892 14,586 15,315 16,081 16,885 17,729 18,616 Consultancy charges & audit fee 24,000 25,200 26,460 27,783 29,172 30,631 32,162 33,770 35,459 37,232 Newspaper, books & periodicals 60,000 63,000 66,150 69,458 72,930 76,577 80,406 84,426 88,647 93,080 Stationary & printing 120,000 126,000 132,300 138,915 145,861 153,154 160,811 168,852 177,295 186,159 Postage 18,000 18,900 19,845 20,837 21,879 22,973 24,122 25,328 26,594 27,924 Transportation & travelling 24,000 25,200 26,460 27,783 29,172 30,631 32,162 33,770 35,459 37,232 Advertisement 120,000 126,000 132,300 138,915 145,861 153,154 160,811 168,852 177,295 186,159 Office supplies 42,000 44,100 46,305 48,620 51,051 53,604 56,284 59,098 62,053 65,156 Medical & first aid 24,000 25,200 26,460 27,783 29,172 30,631 32,162 33,770 35,459 37,232 Misc. Office expense 30,000 31,500 33,075 34,729 36,465 38,288 40,203 42,213 44,324 46,540 Plantation expense 30,000 31,500 33,075 34,729 36,465 38,288 40,203 42,213 44,324 46,540 Repair & maintenance 120,000 126,000 132,300 138,915 145,861 153,154 160,811 168,852 177,295 186,159 Insurance expense 54,918 49,426 43,935 38,443 32,951 27,459 21,967 16,475 10,984 5,492 Professional fees (legal, audit, consultants, etc.) 55,665 91,679 115,383 132,686 150,842 155,678 163,462 171,635 180,217 189,228 Janitorial expense 120,000 126,000 132,300 138,915 145,861 153,154 160,811 168,852 177,295 186,159 Depreciation expense 614,052 614,052 614,052 653,458 653,458 653,458 699,075 699,075 699,075 751,884 Amortization of pre-operating costs 39,609 39,609 39,609 39,609 39,609 39,609 39,609 39,609 39,609 39,609

Subtotal 7,446,502 8,090,575 8,780,960 9,551,925 10,352,459 11,214,417 12,206,953 13,244,264 14,380,763 15,678,924 Operating Income 26,498 2,945,660 5,975,739 7,673,564 9,573,015 8,654,141 8,091,677 7,449,606 6,666,138 5,670,495 Other income 86,628 151,904 374,127 732,908 1,193,593 1,759,878 2,357,491 2,934,024 3,527,833 4,137,429 Gain / (loss) on sale of assets - - 450,000 - - 745,931 - - 976,009 - Earnings Before Interest & Taxes 113,126 3,097,564 6,799,867 8,406,472 10,766,608 11,159,950 10,449,168 10,383,629 11,169,980 9,807,924 Interest expense 548,430 465,398 433,844 309,188 151,735 135,534 118,536 85,502 156,898 137,220 Earnings Before Tax (435,304) 2,632,166 6,366,022 8,097,284 10,614,873 11,024,416 10,330,632 10,298,127 11,013,082 9,670,705 Taxable earnings for the year (435,304) 2,196,862 6,366,022 8,097,284 10,614,873 11,024,416 10,330,632 10,298,127 11,013,082 9,670,705 Tax - 549,216 1,591,506 2,024,321 2,653,718 2,756,104 2,582,658 2,574,532 2,753,271 2,417,676 NET PROFIT/(LOSS) AFTER TAX (435,304) 2,082,951 4,774,517 6,072,963 7,961,155 8,268,312 7,747,974 7,723,595 8,259,812 7,253,028



23

1133--33 PPrroojjeecctteedd BBaallaannccee SShheeeett Balance Sheet

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

Cash & Bank 1,225,542 1,249,550 3,090,560 7,598,784 13,341,448 20,761,201 29,521,015 37,835,868 45,993,386 54,801,836 63,410,432 Accounts receivable - 253,023 669,746 941,193 1,127,587 1,288,761 1,393,273 1,450,640 1,523,172 1,599,331 1,679,297 Pre-paid building rent 300,000 330,000 363,000 399,300 439,230 483,153 531,468 584,615 643,077 707,384 - Pre-paid insurance 54,918 49,426 43,935 38,443 32,951 27,459 21,967 16,475 10,984 5,492 -

Total Current Assets 1,580,460 1,881,999 4,167,241 8,977,720 14,941,216 22,560,574 31,467,723 39,887,599 48,170,618 57,114,042 65,089,729

Fixed assetsMachinery & equipment 1,098,365 988,529 878,692 768,856 659,019 549,183 439,346 329,510 219,673 109,837 - Furniture & fixtures 2,542,150 2,287,935 2,033,720 1,779,505 1,525,290 1,271,075 1,016,860 762,645 508,430 254,215 - Office equipment 750,000 500,000 250,000 868,219 578,813 289,406 1,005,072 670,048 335,024 1,163,496 775,664

Total Fixed Assets 4,390,515 3,776,464 3,162,412 3,416,579 2,763,122 2,109,664 2,461,278 1,762,202 1,063,127 1,527,548 775,664

Intangible assetsPre-operation costs 396,093 356,484 316,874 277,265 237,656 198,047 158,437 118,828 79,219 39,609 (0)

Total Intangible Assets 396,093 356,484 316,874 277,265 237,656 198,047 158,437 118,828 79,219 39,609 (0) TOTAL ASSETS 6,367,068 6,014,946 7,646,527 12,671,564 17,941,993 24,868,284 34,087,438 41,768,629 49,312,964 58,681,199 65,865,393

Liabilities & Shareholders' EquityCurrent liabilities

Accounts payable - 83,182 249,082 354,990 400,719 444,421 488,863 537,749 591,524 650,677 715,744 Total Current Liabilities - 83,182 249,082 354,990 400,719 444,421 488,863 537,749 591,524 650,677 715,744

Other liabilitiesLong term debt 3,183,534 3,183,534 2,566,265 2,276,767 1,428,504 349,938 753,802 638,132 405,097 872,620 738,718

Total Long Term Liabilities 3,183,534 3,183,534 2,566,265 2,276,767 1,428,504 349,938 753,802 638,132 405,097 872,620 738,718

Shareholders' equityPaid-up capital 3,183,534 3,183,534 3,183,534 3,617,643 3,617,643 3,617,643 4,120,179 4,120,179 4,120,179 4,701,927 4,701,927 Retained earnings - (435,304) 1,647,647 6,422,163 12,495,127 20,456,282 28,724,594 36,472,568 44,196,163 52,455,975 59,709,003

Total Equity 3,183,534 2,748,230 4,831,181 10,039,807 16,112,770 24,073,925 32,844,773 40,592,747 48,316,343 57,157,902 64,410,931 TOTAL CAPITAL AND LIABILITIES 6,367,068 6,014,946 7,646,527 12,671,564 17,941,993 24,868,284 34,087,438 41,768,629 49,312,964 58,681,199 65,865,393



24

1133--44 PPrroojjeecctteedd CCaasshh FFllooww SSttaatteemmeenntt Cash Flow Statement

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

Net profit - (435,304) 2,082,951 4,774,517 6,072,963 7,961,155 8,268,312 7,747,974 7,723,595 8,259,812 7,253,028 Add: depreciation expense - 614,052 614,052 614,052 653,458 653,458 653,458 699,075 699,075 699,075 751,884 amortization expense - 39,609 39,609 39,609 39,609 39,609 39,609 39,609 39,609 39,609 39,609 Accounts receivable - (253,023) (416,724) (271,447) (186,394) (161,174) (104,512) (57,367) (72,532) (76,159) (79,967) Pre-paid building rent (300,000) (30,000) (33,000) (36,300) (39,930) (43,923) (48,315) (53,147) (58,462) (64,308) 707,384 Advance insurance premium (54,918) 5,492 5,492 5,492 5,492 5,492 5,492 5,492 5,492 5,492 5,492 Accounts payable - 83,182 165,900 105,908 45,729 43,702 44,442 48,886 53,775 59,152 65,068

Cash provided by operations (354,918) 24,008 2,458,280 5,231,831 6,590,927 8,498,319 8,858,486 8,430,523 8,390,553 8,922,674 8,742,499

Financing activitiesChange in long term debt 3,183,534 - (617,269) (289,498) (848,263) (1,078,566) 403,864 (115,670) (233,035) 467,523 (133,902) Change in short term debt - - - - - - - - - - - Issuance of shares 3,183,534 - - 434,109 - - 502,536 - - 581,748 -

Cash provided by / (used for) financing activ 6,367,068 - (617,269) 144,612 (848,263) (1,078,566) 906,400 (115,670) (233,035) 1,049,271 (133,902)

Investing activitiesCapital expenditure (4,786,608) - - (868,219) - - (1,005,072) - - (1,163,496) -

Cash (used for) / provided by investing activ (4,786,608) - - (868,219) - - (1,005,072) - - (1,163,496) -

NET CASH 1,225,542 24,008 1,841,010 4,508,224 5,742,664 7,419,753 8,759,814 8,314,853 8,157,518 8,808,450 8,608,596



25

1133--55 FFeeee IInnccoommee

Per Student No. Rupees Per

Student No. Rupees Per Student No. Rupees Per

Student No. Rupees Per Student No. Rupees

Number of StudentsNew 294 206 144 101 93 Old - 279 461 575 642

294 485 605 676 735 Non-Operating Revenue

Security (Refundable) 2,000 588,000 2,100 432,180 2,205 317,652 2,315 233,474 2,431 226,749 Registration Fee 2,500 735,000 2,625 540,225 2,756 397,065 2,894 291,843 3,039 283,436 Admission Fee 5,000 1,470,000 5,250 1,080,450 5,513 794,131 5,788 583,686 6,078 566,872

2,205,000 1,620,675 1,191,196 875,529 850,307 Operating Revenue

Monthly Fee

135 Nursery to Prep 2,000 78 1,872,000 2,100 89 2,245,320 2,205 111 2,939,838 2,315 124 3,447,085 2,431 135 3,938,240 240 I to IV 2,500 120 3,600,000 2,625 158 4,989,600 2,756 198 6,532,974 2,894 221 7,660,190 3,039 240 8,751,645 375 198 5,472,000 248 7,234,920 309 9,472,812 345 11,107,275 375 12,689,885

0240 V to VIII 3,000 96 3,456,000 3,150 158 5,987,520 3,308 198 7,839,569 3,473 221 9,192,228 3,647 240 10,501,974 120 IX to X (Matric) 3,500 - - 3,675 79 3,492,720 3,859 99 4,573,082 4,052 110 5,362,133 4,254 120 6,126,152 360 96 3,456,000 238 9,480,240 296 12,412,651 331 14,554,361 360 16,628,126

Net Fee 294 11,133,000 485 18,335,835 605 23,076,659 676 26,537,165 735 30,168,318

Year - VYear - III Year - IVYear - I Year - II



26

Y - VI Y - VII Y - VIII Y - IX Y - XPer



Student No. Rupees

Number of StudentsNew 37 37 37 37 37 Old 698 698 698 698 698

735 735 735 735 735 Non-Operating Revenue

Security (Refundable) 2,553 93,807 2,680 98,497 2,814 103,422 2,955 108,593 3,103 114,023 Registration Fee 3,191 117,258 3,350 123,121 3,518 129,277 3,694 135,741 3,878 142,528 Admission Fee 6,381 234,517 6,700 246,243 7,036 258,555 7,387 271,482 7,757 285,057

351,775 369,364 387,832 407,224 427,585 Operating Revenue

Monthly Fee

135 Nursery to Prep 2,553 135 4,135,152 2,680 135 4,341,910 2,814 135 4,559,005 2,955 135 4,786,956 3,103 135 5,026,303 240 I to IV 3,191 240 9,189,227 3,350 240 9,648,689 3,518 240 10,131,123 3,694 240 10,637,679 3,878 240 11,169,563 375 375 13,324,380 375 13,990,598 375 14,690,128 375 15,424,635 375 16,195,867

240 V to VIII 3,829 240 11,027,073 4,020 240 11,578,426 4,221 240 12,157,348 4,432 240 12,765,215 4,654 240 13,403,476 120 IX to X (Matric) 4,467 120 6,432,459 4,690 120 6,754,082 4,925 120 7,091,786 5,171 120 7,446,375 5,430 120 7,818,694 360 360 17,459,532 360 18,332,508 360 19,249,134 360 20,211,590 360 21,222,170

Net Fee 735 31,135,686 735 32,692,471 735 34,327,094 735 36,043,449 735 37,845,621



27

1133--66 EEssttiimmaatteedd EExxppeennsseess

No. Monthly Total for the

Year No. Monthly Total for the




Year (Rupees) (Rupees) (Rupees) (Rupees) (Rupees)

Salary & Allowances

Principal 1 20,000 240,000 1 22,000 264,000 1 24,200 290,400 1 26,620 319,440 1 29,282 351,384 Teachers Coordinator 1 15,000 180,000 2 16,500 396,000 2 18,150 435,600 2 19,965 479,160 2 21,962 527,076 Librarian 1 10,000 120,000 1 11,000 132,000 1 12,100 145,200 1 13,310 159,720 1 14,641 175,692

3 540,000 4 792,000 4 871,200 4 958,320 4 1,054,152 Faculty Member:

Subject Specialist - 15,000 - 3 16,500 594,000 3 18,150 653,400 3 19,965 718,740 3 21,962 790,614 Games Teacher 1 12,000 144,000 1 13,200 158,400 1 14,520 174,240 1 15,972 191,664 1 17,569 210,830 Senior Teachers 9 12,000 1,296,000 18 13,200 2,851,200 18 14,520 3,136,320 18 15,972 3,449,952 18 17,569 3,794,947 Junior Teachers 8 10,000 960,000 16 11,000 2,112,000 16 12,100 2,323,200 16 13,310 2,555,520 16 14,641 2,811,072 Pre-School Teachers 6 10,000 720,000 6 11,000 792,000 8 12,100 1,161,600 9 13,310 1,437,480 9 14,641 1,581,228

24 3,120,000 44 6,507,600 46 7,448,760 47 8,353,356 47 9,188,692 Admin Staff

Accountant 1 12,000 144,000 1 13,200 158,400 1 14,520 174,240 1 15,972 191,664 1 17,569 210,830 Lab incharge 2 8,000 192,000 2 8,800 211,200 2 9,680 232,320 2 10,648 255,552 2 11,713 281,107 Attendants 2 7,000 168,000 2 7,700 184,800 2 8,470 203,280 2 9,317 223,608 2 10,249 245,969 Helpers / Peon 2 7,000 168,000 2 7,700 184,800 2 8,470 203,280 2 9,317 223,608 2 10,249 245,969

7 672,000 7 739,200 7 813,120 7 894,432 7 983,875 Maintenance Staff :

Guards 3 8,000 288,000 3 8,800 316,800 3 9,680 348,480 3 10,648 383,328 3 11,713 421,661 Electrician 1 8,000 96,000 1 8,800 105,600 1 9,680 116,160 1 10,648 127,776 1 11,713 140,554 Cleaner 2 7,000 168,000 2 7,700 184,800 2 8,470 203,280 2 9,317 223,608 2 10,249 245,969

6 552,000 6 607,200 6 667,920 6 734,712 6 808,183 Total Staff 40 4,884,000 61 8,646,000 63 9,801,000 64 10,940,820 64 12,034,902

Year - V

Administration:

Year - I Year - II Year - III Year - IV



28

No. Monthly Total for the





Year (Rupees) (Rupees) (Rupees) (Rupees) (Rupees)

Salary & Allowances

Principal 1 32,210 386,522 1 35,431 425,175 1 38,974 467,692 1 42,872 514,461 1 47,159 565,907 Teachers Coordinator 2 24,158 579,784 2 26,573 637,762 2 29,231 701,538 2 32,154 771,692 2 35,369 848,861 Librarian 1 16,105 193,261 1 17,716 212,587 1 19,487 233,846 1 21,436 257,231 1 23,579 282,954

4 1,159,567 4 1,275,524 4 1,403,076 4 1,543,384 4 1,697,722 Faculty Member:

Subject Specialist 3 24,158 869,675 3 26,573 956,643 3 29,231 1,052,307 3 32,154 1,157,538 3 35,369 1,273,292 Games Teacher 1 19,326 231,913 1 21,259 255,105 1 23,385 280,615 1 25,723 308,677 1 28,295 339,544 Senior Teachers 18 19,326 4,174,442 18 21,259 4,591,886 18 23,385 5,051,075 18 25,723 5,556,182 18 28,295 6,111,800 Junior Teachers 16 16,105 3,092,179 16 17,716 3,401,397 16 19,487 3,741,537 16 21,436 4,115,691 16 23,579 4,527,260 Pre-School Teachers 9 16,105 1,739,351 9 17,716 1,913,286 9 19,487 2,104,614 9 21,436 2,315,076 9 23,579 2,546,584

47 10,107,561 47 11,118,317 47 12,230,149 47 13,453,163 47 14,798,480 Admin Staff

Accountant 1 19,326 231,913 1 21,259 255,105 1 23,385 280,615 1 25,723 308,677 1 28,295 339,544 Lab incharge 2 12,884 309,218 2 14,172 340,140 2 15,590 374,154 2 17,149 411,569 2 18,864 452,726 Attendants 2 11,274 270,566 2 12,401 297,622 2 13,641 327,384 2 15,005 360,123 2 16,506 396,135 Helpers / Peon 2 11,274 270,566 2 12,401 297,622 2 13,641 327,384 2 15,005 360,123 2 16,506 396,135

7 1,082,263 7 1,190,489 7 1,309,538 7 1,440,492 7 1,584,541 Maintenance Staff :

Guards 3 12,884 463,827 3 14,172 510,210 3 15,590 561,231 3 17,149 617,354 3 18,864 679,089 Electrician 1 12,884 154,609 1 14,172 170,070 1 15,590 187,077 1 17,149 205,785 1 18,864 226,363 Cleaner 2 11,274 270,566 2 12,401 297,622 2 13,641 327,384 2 15,005 360,123 2 16,506 396,135

6 889,002 6 977,902 6 1,075,692 6 1,183,261 6 1,301,587 Total Staff 64 13,238,392 64 14,562,231 64 16,018,455 64 17,620,300 64 19,382,330

Administration:

Year - IX Year - XYear - VI Year - VII Year - VIII



29

T1133--77 SSuubbjjeecctt DDeettaaiillT

Subject Detail

Sections 2 2 2 2 2 2 2 2 2 2Subjects I II III IV V VI VII VIII IX XUrduEnglishMathsComputer sciencesScienceArtIslamyatSocial StudiesGeographyHistoryPhysicsChemistryBiology/Computer

No. of Teachers Junior Section Senior Section Subject SpecialistSection-1 8 9Section-II 8 9Subject Specialist 3

Classes


PREF-50/June 2010/Rev 3

30

1144 KKEEYY AASSSSUUMMPPTTIIOONNSS

1144--11 FFiinnaanncciiaall AAssssuummppttiioonnss

Interest Rate Short Term Loan 14%Long Term Loan 16%Interest on cash in bank 7%

Project Financing Equity 50%Debt 50%

Long Term Loan Repayment (Yrs) 5Tax rateTP

10PT 25%

Insurance expense 5%

1144--22 MMiisscceellllaanneeoouuss AAssssuummppttiioonnss

Salaries growth rate 5%Student fee growth rate 5%Expense growth rate 5%Electricity growth rate 10%Rent growth rate 10%Student dropout rate 5%New student intake 70%Depreciation on: (Written Down Value)

Furniture & Fix. 10%Electric & other equipment 10%IT Equipment 33%

Life of furniture and equipment 10 yearsLife of IT equipment 3 yearsCash in Hand (Days) 30Operational hours/day 7Operational days/week 6

TP

10PT Tax rate is fixed through out the project since the income falls in 25% tax deduction slab



31

1155 AANNNNEEXXUURREE

1) School Furniture Suppliers and Markets

i. Decora Furniture – Lahore Address: 47-Ferozpur Road, Lahore, Pakistan

Tel: +92-42-37554862

ii. Interwood Mobel – Lahore Address: 117-E-1,Gulberg-III,Lahore

Tel: +92-42-35870222-6549123-5711117

Fax: +92-42-36549126

Email: [email protected]

URL: http://www.interwoodmobel.com

iii. Javaid & Co. – Lahore Address: 29130-Nishter Road, Lahore

Tel: +92-42-37653007

iv. Master Fibre Glass – Lahore Address: 47-C,3 Miraj Building, Ferozepur Road, Lahore

Tel: +92-42-35010010

v. Koncept Furniture - Gujrat Address: Dheerkay By Pass, G.T. Road, Gujrat, Pakistan

Tel: +92-300-6233455

vi. Nisbat Road Market - Lahore

vii. Ferozepur Road Market - Lahore

2) IT Equipment Markets i. Hafeez Centre - Lahore

ii. Hall Road - Lahore

3) Electrical Equipment and Appliances Suppliers and Markets

i. Asian Electronics Address: 7-C, Ground Floor, Abid Market, Shadab Colony, Temple Road, Lahore

Tel: +92-42-35030276

Fax: +92-42-36372772

E-mail: [email protected]



32

ii. Volta Electrical Equipment Address: 81-3, Shahra-e-Quaid-e-Azam, Lahore

Tel: +92-42-36304616, 36301546

iii. VIP Electronics Address: G-1, Ahmed Plaza, Main Hall Road, Lahore

Tel: +92-42-37220089, 37230089

Fax: +92-42-37233534

iv. Swans International Address: 50-F, Main Gulberg-III, Lahore

Tel: +92-42-35752839, 35877761

Fax: +92-42-35753901


v. Madina Electronics Address: 126-A, Temple Road, Lahore

Tel: +92-42-37356612, 37356740

vi. Abid Market - Lahore

vii. Hall Road - Lahore

4) Educational Experts/Consultants

i. Ms. Rozina Jumani Director Planning and Capacity Building/Educational Consultant


ii. FINCON Services Inc. Pakistan

House #798 Street 16, Sector

I-8/2 Islamabad 46000, Pakistan

Phone: 92-51-3410-0933

Fax: 92-51-3444-3993

iii. Academy for Educational Development

House 299, Street 19, E-7, Aurangzeb Road, Islamabad

Tel: 92-51-3265-4091-3

Fax: 92-51-3265 4094


Website: www.aed.org



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iv. Aga Khan University Institute for Educational Development F.B. Area, Karimabad, P.O. Box 13688,

Karachi 75950, Pakistan

Tel: 92-21-3634-7611

Fax: 92-21-3634-7616, 3634-6624


5) Tax deduction income slabs

Income Slabs Tax Rate 0.00% 100,000 – 110,000 0.50% 110,000 – 125,000 1.00% 125,000 – 150,000 2.00% 150,000 – 175,000 3.00% 175,000 – 200,000 4.00% 200,000 – 300,000 5.00% 300,000 – 400,000 7.50% 400,000 – 500,000 10.00% 500,000 – 600,000 12.50% 600,000 – 800,000 15.00% 800,000 – 1,000,000 17.50% 1,000,000 – 1,300,000 21.00% 1,300,000 and above 25.00%

Documents

SMEDA High School