Pre-Feasibility Study Prime Ministers 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 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 REGIONAL OFFICE SINDH 5TH Floor, Bahria Complex II, M.T. Khan Road, Karachi. Tel: (021) 111-111-456 Fax: (021) 5610572 helpdesk-khi@smeda.org.pk REGIONAL OFFICE KPK Ground Floor State Life Building The Mall, Peshawar. Tel: (091) 9213046-47 Fax: (091) 286908 helpdesk-pew@smeda.org.pk REGIONAL OFFICE BALOCHISTAN Bungalow No. 15-A Chaman Housing Scheme Airport Road, Quetta. Tel: (081) 831623, 831702 Fax: (081) 831922 helpdesk-qta@smeda.org.pk

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Table of Contents
1 2 3 4 5 6 7 8 9 10 11 Disclaimer ............................................................................................................................... 1 Purpose of the Document ........................................................................................................ 2 Introduction to SMEDA.......................................................................................................... 2 Introduction to Scheme ........................................................................................................... 2 Executive Summary ................................................................................................................ 3 Brief Description of Project & Product .................................................................................. 3 Critical Factors in Decision Making ....................................................................................... 4 Installed & Operational Capacities ......................................................................................... 4 Geographical Potential for Investment ................................................................................... 4 Potential Target Markets & Cities .......................................................................................... 5 Project Cost Summary ............................................................................................................ 5 11.1 Project Economics .......................................................................................................... 5 11.2 Project Financing ............................................................................................................ 6 11.3 Project Cost ..................................................................................................................... 6 11.4 Space Requirement ......................................................................................................... 6 11.5 Equipment Requirement ................................................................................................. 7 11.6 Furniture & Fixtures Requirement .................................................................................. 7 11.7 Human Resource Requirement ....................................................................................... 8 11.8 Revenue Generation ........................................................................................................ 8 11.9 Other Costs...................................................................................................................... 9 12 Contacts Suppliers, Experts / Consultants, Dev. Institutions............................................... 9 13 Annexure ............................................................................................................................... 10 13.1 Income Statement.......................................................................................................... 10 13.2 Balance Sheet ................................................................................................................ 11 13.3 Statement of Cash Flow ................................................................................................ 12 13.4 Useful Project Management Tips.................................................................................. 13 13.5 Useful Links .................................................................................................................. 14 14 Key Assumptions .................................................................................................................. 15

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1 DISCLAIMER
This information memorandum is to introduce the subject matter and provide a general idea and information on the said matter. Although, the material included in this document is based on data/information gathered from various reliable sources; however, it is based upon certain assumptions which may differ from case to case. The information has been provided on as is where is basis without any warranties or assertions as to the correctness or soundness thereof. Although, due care and diligence has been taken to compile this document, the contained information may vary due to any change in any of the concerned factors, and the actual results may differ substantially from the presented information. SMEDA, its employees or agents do not assume any liability for any financial or other loss resulting from this memorandum in consequence of undertaking this activity. The contained information does not preclude any further professional advice. The prospective user of this memorandum is encouraged to carry out additional diligence and gather any information which is necessary for making an informed decision, including taking professional advice from a qualified consultant/technical expert before taking any decision to act upon the information. For more information on services offered by SMEDA, please contact our website: www.smeda.org.pk

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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 its 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 Ministers Small Business Loans Scheme, for young entrepreneurs, with an allocated budget of Rs. 5.0 Billion for the year 2013-14, is designed to provide
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subsidised financing at 8% mark-up per annum for one hundred thousand (100,000) beneficiaries, through designated financial institutions, initially through National Bank of Pakistan (NBP) and First Women Bank Ltd. (FWBL). Small business loans with tenure upto 7 years, and a debt : equity of 90 : 10 will be disbursed to SME beneficiaries across Pakistan, covering; Punjab, Sindh, Khyber Pakhtunkhwah, Balochistan, Gilgit Baltistan, Azad Jammu & Kashmir and Federally Administered Tribal Areas (FATA).

5 EXECUTIVE SUMMARY
Day Care Center is proposed to be located in major cities as Islamabad, Lahore, Karachi and Quetta etc. Life, today, is characterized by independent family systems, need for improved living standards, quality education for children, etc resulting in increased pressure on working women to efficiently manage both their professions and domestic responsibilities. The demand for day care centers is on the rise, specifically by working mothers, and the service is deemed as a profitable social entrepreneurship opportunity. The project features a facility and its ancillary services for children aged 6 months to 5 years in a hygienic and activity based educational environment through trained and educated staff. The project can be used for a maximum of 40 enrolments, however, keeping in view the rationale and demand; calculations have been made on the assumption of 24 enrolments for the first year of operations. Total cost estimate of the project is Rs. 1.42 Million with a fixed investment of Rs. 0.84 Million and a working capital of Rs. 0.58 Million. Given the cost assumptions IRR and payback are 62% and 1.92 years, respectively. The most critical considerations or factors for success of the project are: Most Significant Consideration: Commercial area, accessible and secure area Equally Important Factor: Admission Time

6 BRIEF DESCRIPTION OF PROJECT & PRODUCT

Techniques: This proposed unit would be established with modern learning techniques and extracurricular activities. Location: The unit would be located in metropolitan cities of Pakistan i.e. Lahore, Islamabad, Quetta, Peshawar, Karachi and smaller cities.

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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

Centers 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 centers day care system. The center should be started at least one week prior to the ending of winter vacations so that proper promotion and management of admissions are conducted. A well-trained/experienced care provider will ensure value added service delivery. It is recommended that the proposed project should be established in a rented building to reduce the project cost.

8 INSTALLED & OPERATIONAL CAPACITIES

It is proposed that infants age of more than 6 months and up to 5 years age children would be enrolled in the center. Initially day care center growth would be 60% in the first year, where 24 kids would be enrolled. However, this capacity may not be achieved in the initial years of operations.

9 GEOGRAPHICAL POTENTIAL FOR INVESTMENT

The fast paced life of the cities is significantly influencing the life style of its inhabitants. Economic pressures are compelling both parents to work towards achieving and sustaining quality life standards. This has further added to complexity and competition of any Metropolitan city. As a result of these social changes, the trend of sending children to Day Care Centers at a much earlier age is gaining rapid grounds. Major cities of Pakistan have great potential for this project, e.g, Karachi, Islamabad, Lahore, Peshawar and Quetta.

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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 Ministers 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 Internal Rate of Return (IRR) Payback Period (yrs) Net Present Value (NPV) Details 62% 1.92 4,224,856

Returns on the scheme and its profitability are highly dependent on the efficiency of location, staff, hygienic environment, safety, curricular & extracurricular activities. In case Day Care Center is not very efficient, it will not be able to cover the potential and recover payments.

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1 1 .2

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 Project Cost Details Rs.142,028 Rs.1,278,252 8% 7

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 Total Project Cost 1 1 .4 Space Requirement Amount (Rs.) 5,000 483,000 274,000 78,280 840,280 580,000 1,420,280

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 Building Covered Area Play Area / Grounds Total Building Area Sq .ft Required 2,000 2,500 4,500

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1 1 .5

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 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 Furniture & Fixtures Requirement

Qty 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 for the project is detailed as under: Table 6: Furniture & Fixture Detail Description Office Chairs Office Table Sofa Cum Bed
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Qty 2 1 2

Cost/Uni t 5,000 10,000 10,000

Total Cost 10,000 60,000 20,000

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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 Human Resource Requirement

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

The manpower required for operating the Day Care Center is as follows: Table 7: Human Resource Detail Description Owner / Manager Nannies Guard Total Qty 1 4 1 6 Salary 20,000 10,000 10,000 Total Monthly Salary 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 childs 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 Annual Revenue First Year Enrolment 24 Monthly Revenue (Rs) 216,000 2,592,000

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1 1 .9

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 Gas Price Growth Rate Water Price Growth Rate Salary Growth Rate Rent Growth Rate Student Fee Growth Rate 10% 10% 10% 10% 10% 10%

Contacts Suppliers, Experts / Consultants, Dev. Institutions Below is the list of major suppliers of Children Toys for Day Care Center: 1. Babyland Toys 1st Floor, Sheikh Innayat-Ullah Building, Liberty Market, Gulberg 3, Lahore Pakistan Tel: 042-35757468, Mob: 0336-4050607 http://www.babyland.com.pk/ 2. Kaymu Toys Arfa Software Technology Park 346-B Ferozpur Road Lahore, Pakistan http://www.kaymu.pk

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12 ANNEXURE
1 2 .1 Income Statement
SMEDA
Year 1 Revenue Cost of goods sold Gross Profit 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 Other income Gain / (loss) on sale of assets Earnings Before Interest & Taxes Interest expense Earnings Before Tax Tax 2,592,000 2,592,000 Year 2 2,948,400 2,948,400 Year 3 3,333,960 3,333,960 Year 4 3,750,705 3,750,705 Year 5 4,200,790 4,200,790 Year 6 4,686,506 4,686,506 Year 7 5,210,292 5,210,292 Year 8 5,470,806 5,470,806 Year 9 5,744,347 5,744,347 Rs. in actuals Year 10 6,031,564 6,031,564

Statement Summaries
Income Statement

840,000 480,000 480,000 51,840 76,200 15,656 60,000 2,003,696 588,304 588,304 98,065 490,239 -

924,000 528,000 528,000 58,968 76,200 15,656 66,000 2,196,824 751,576 751,576 86,343 665,233 -

1,016,400 580,800 580,800 66,679 76,200 15,656 72,600 2,409,135 924,825 924,825 73,656 851,169 -

1,118,040 638,880 638,880 75,014 76,200 15,656 79,860 2,642,530 1,108,175 1,108,175 59,922 1,048,253 -

1,229,844 702,768 702,768 84,016 76,200 15,656 87,846 2,899,098 1,301,692 1,301,692 45,057 1,256,635 123,128

1,352,828 773,045 773,045 93,730 76,200 96,631 3,165,479 1,521,027 1,521,027 28,966 1,492,061 233,288

1,488,111 850,349 850,349 104,206 76,200 106,294 3,475,509 1,734,783 1,734,783 11,549 1,723,234 261,235

1,636,922 935,384 935,384 109,416 76,200 116,923 3,810,230 1,660,577 1,660,577 1,660,577 291,612

1,800,615 1,028,923 1,028,923 114,887 76,200 128,615 4,178,162 1,566,185 1,566,185 1,566,185 324,542

1,980,676 1,131,815 1,131,815 120,631 76,200 141,477 4,582,614 1,448,950 1,448,950 1,448,950 360,762

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1 2 .2

Balance Sheet
SMEDA
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

Statement Summaries
Balance Sheet

Assets Current assets Cash & Bank Pre-paid building rent Total Current Assets Fixed assets Machinery & equipment Furniture & fixtures Office vehicles OEducational Tools Total Fixed Assets 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 Shareholders' equity Paid-up capital Retained earnings Total Equity TOTAL CAPITAL AND LIABILITI

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

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

11,225,860

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

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

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

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1 2 .3

Statement of Cash Flow

SMEDA
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

Statement Summaries
Cash Flow Statement

Operating activities Net profit Add: depreciation expense amortization expense Pre-paid building rent Cash provided by operations Financing activities Change in long term debt Issuance of shares Cash provided by / (used for) financ Investing activities Capital expenditure Cash (used for) / provided by invest NET CASH Cash balance brought forward Cash available for appropriation Dividend Cash carried forward

(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

1,304,548 76,200 94,318 1,475,066

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)

(840,280) (840,280) 540,000

435,901 540,000 975,901 975,901

571,457 975,901 1,547,358 1,547,358

720,325 1,547,358 2,267,683 2,267,683

873,745 2,267,683 3,141,428 3,141,428

1,035,598 3,141,428 4,177,026 4,177,026

1,198,207 4,177,026 5,375,233 5,375,233

1,365,281 5,375,233 6,740,514 6,740,514

1,543,287 6,740,514 8,283,800 8,283,800

1,466,994 8,283,800 9,750,794 9,750,794

1,475,066 9,750,794 11,225,860 11,225,860

540,000 540,000

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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 help may be engaged for

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.

Human Resources Adequacy & Competencies: Skilled and experienced staff should be considered an investment even to the extent of offering share in business profit. Performance Based Remuneration: Attempt to manage human resource cost should be focused through performance measurement and performance based compensation. Training & Skill Development: Encouraging training and skill of self & employees through experts and exposure of best practices is route to success. Least cost options for Training and Skill Development (T&SD) may be linked with compensation benefits and awards.

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Useful Links Prime Ministers 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

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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 Sales Price Growth Rate Capacity Utilization Growth Rate Increase in Cost of Raw Materials Increase in utilities (Electricity/W ater/Gas Debt / Equity Ratio Plant Building Machinery Office Furniture & Equipment Loan Period Loan installments Financial Charges (Loan Rate) Assumptions 5 % per year 5 % per year 10 % per year 10 % per year 90 : 10 10 % per annum 10 % per annum 10 % per annum 7 Years Quarterly 8 % per annum

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