Smeda It College
Smeda It College
Smeda It College
IT COLLEGE
8 Floor, LDA Plaza, Egerton Road, Lahore. Tel: (042) 111-111-456 Fax: (042) 6304926-27 helpde sk@smeda.org.pk
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5th Floor, Bahria Complex II, M.T. Khan Road, Karachi. Tel: (021) 111-111-456 Fax: (021) 5610572 helpdesk -khi@smeda.org.pk
Ground Floor State Life Building The Mall, Peshawar. Tel: (091) 9213046-47 Fax: (091) 286908 helpdesk -pew@smeda.org.pk
Bungalow No. 15-A Chaman Housing Scheme Airport Road, Quetta. Tel: (081) 831623, 831702 Fax: (081) 831922 helpdesk -qta@smeda.org.pk
March, 2007
Pre-Feasibility Study
IT College
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. Therefore, the content of this memorandum should not be relied upon for making any decision, investment or otherwise. The prospective user of this memorandum is encouraged to carry out his/her own due diligence and gather any information he/she considers necessary for making an informed decision. The contents of the information memorandum do not bind SMEDA in any legal or other form.
DOCUMENT CONTROL
Document No. Revision Prepared by Approved by Issue Date Revision Date PREF-26 2 SMEDA-Punjab GM Punjab July 30, 2001 March, 2007
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1 INTRODUCTION
1.1 Project Brief
This document describes the investment opportunity about setting up a college of providing educational & training services in Information Technology. The college can start mainly by offering short courses and with the passage of time can venture to develop into a proper degree awarding authority. The institute can be established in any of the major cities of the country. However, with a phenomenal growth of IT colleges in Karachi, Lahore and Islamabad, a college offering quality education and wide course options, opened up in other large peripheral cities is expected to earn early recognition and student preference. The project will offer following short courses in the initial phase. Visual Basic + SQL Server (Database) 3-D Graphics CCNA (Networking) Microsoft Certified Service Engineer (MCSE) Applications Software (IT Office) E-Commerce Auto Cad This combination is designed according to the needs of a particular target market and is by no means rigid. Each individual entrepreneur will have to carry out a market research and offer a course offer corresponding to the educational needs and requirement of his particular community and city.
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1 2 3 4 5 6 7
Visual Basic 8 3D Graphics 8 CCNA 12 MCSE 8 IT Office 10 E-Commerce 10 AutoCAD 10 Fees are subject to the admission fee.
2 3 6 7 3 3 3
6 4 2 1 4 4 4
2 CURRENT STRUCTURE
INDUSTRY
According to an approximate figure, there are more than 400 IT institutes in Pakistan. Around 150 of these are in Lahore alone. There is a general trend moving towards IT studies in Pakistan that makes this industry even more attractive. The local market is divided into different tiers depending on the quality of faculty, training facilities and affiliation. Bulk of the market however is attracted towards recognized and established groups. Therefore a number of foreign IT institute chains are coming into Pakistan including, APTECH & APIIT. In addition to these foreign affiliated institutions, local colleges with long established histories of quality education are also running as successful ventures. These include Nicon, Informatics, Petroman, Infologix etc.
Pre-Feasibility Study
IT College
initial phase. During this initial phase, the management can train own permanent staff or hire from among the qualified computer professionals passing out from its own college. A detail of the required personnel is given in the table below. POST Principal / CEO (Owner Manager) Career Counselor Faculty Visual Basic 3D Graphics CCNA MCSE IT Office E-Commerce AutoCAD Administration Staff Security Guards Lab Supervisors Receptionist Office Boys Total Number of Positions 1 1 1 1 1 1 1 1 1 2 2 1 2 18 Expected Salary (Rs/person/month) 25,000 8,000 5,000 8,000 8,000 8,000 6,000 7,000 6,000 4,000 8,000 5,000 4,000
5 EQUIPMENT DETAILS
Major machinery and equipment required for an IT College includes computers and teaching aids like media projectors and printers. Moreover, it is also suggested that the whole college and its facilities should be networked. This will require networking equipment. In addition, for ensuring the safety of all electric equipment, UPS will also be required. The preferred computer to user ratio is 1:1 for short courses but for courses like Microsoft Word, Excel, Power-point, Access, Internet Explorer, the computer to student ratio can be 1:3. It is recommended that the entrepreneur buys Pentium IV's. These can also be bought either second hand or brand new. The preference should be brand new as the new machines have a 10-12 month warranty. The PCs need not be branded and are easily available in the local market.
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The minimum specifications that these PCs should have: P-IV 3 GH 256 MB RAM 80GB Hard Disk 40X CD Drive 1.44 MB Floppy 15" monitor NIC (Network Interface Card) Given below, is the list of all the major machinery and equipment required: Equipment Computers Printers UPS (Local) UPS (Imported) Server Networking Hubs Nodes Cabling (Feet) Patch Cables Panels Total Machinery Cost Office Equipment & Furniture Media Projector Multimedia Projector Telephones Total Office Equipment 1 1 3 167,000 96,000 965 167,000 96,000 2,895 265,895 Units 25 2 13 1 1 2 10 1,000 50 2 Cost 20,000 15,000 10,000 60,000 25,000 16,000 500 5 45 3,000 Total Cost 500,000 30,000 130,000 60,000 25,000 32,000 5,000 5,000 2,250 6,000 795,250
The cost of a network terminal is equivalent to a normal PC as it can very easily be converted into network server.
Pre-Feasibility Study
IT College
Description Management building Class Rooms Cafeteria IT Room Pavement/driveway Total Space Requirement
(Should not be less than 15 Sq.ft per student)
Though ideally, a purpose built building can best suit an IT college, however any building with the required space in a peaceful environment can be rented out for the purpose. While selecting a suitable location, following points should be kept in mind: There should be sufficient parking available for students. The place should be conveniently accessible and within the reach of public transport route. An IT College should preferably be not located in a congested or commercial area. Telephone, electricity and Internet facility should be available.
7 FINANCIAL ANALYSIS
7.1 Project Cost
Capital Investment for purchase of equipment is the major component of total project cost of an IT college. While the detail of individual items is given above in the machinery section, a summary of the capital investment is given below. Capital Investment Machinery & equipment Furniture & fixtures 3 Office equipment 4 Pre-operating costs Total Capital Costs Rs 797,750 365,000 270,895 58,000 1,491,645
In addition to capital investment, the project will also require working capital. This detail is given below:
3 4
includes 2 Multimedia projector & 3 Telephone sets. includes Pre-operational Administrative expense & accrued interest.
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Working Capital Pre-paid building rent Pre-paid insurance payment Cash Total Working Capital Total Investment
8.1 Regulations
Tax holiday for IT companies and institutions up to the year 2016. Low Custom Duty (5%) on import of IT related Equipment. Withholding Tax has also been brought down from 6% to 1%.
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Financial Statements
Rs. in
1,960,206 1,960,206 -
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SMEDA
1,584,000 192,000 380,102 9,000 15,840 61,320 39,888 10,220 329,506 11,600 2,633,475 (589,475) 30,983 (558,493) (558,493) (558,493) (558,493)
1,738,220 211,200 418,112 9,450 17,382 79,128 26,592 13,188 329,506 11,600 2,854,378 (216,778) 28,938 (187,840) (187,840) (746,333) (187,840)
1,907,456 232,320 459,923 9,923 19,075 103,392 13,296 17,232 329,506 11,600 3,103,723 342,692 85,888 239,325 667,905 667,905 (78,427) 667,905
2,093,169 255,552 505,915 10,419 20,932 132,455 46,175 22,076 371,421 11,600 3,469,714 945,468 158,334 1,103,802 1,103,802 1,025,374 1,103,802
2,296,963 281,107 556,507 10,940 22,970 172,845 30,783 28,807 371,421 11,600 3,783,943 1,977,557 201,873 2,179,429 2,179,429 2,179,429 2,179,429
2,520,598 309,218 612,158 11,487 25,206 212,501 15,392 35,417 371,421 4,113,397 2,969,966 238,215 277,049 3,485,230 3,485,230 3,485,230 3,485,230
2,766,007 340,140 673,373 12,061 27,660 248,695 53,453 41,449 419,943 4,582,782 3,707,050 276,501 3,983,551 3,983,551 3,983,551 3,983,551
3,035,309 374,154 740,711 12,664 30,353 273,203 35,635 45,534 419,943 4,967,506 4,139,248 319,979 4,459,227 4,459,227 4,459,227 4,459,227
3,330,831 411,569 814,782 13,297 33,308 292,713 17,818 48,786 419,943 5,383,048 4,374,068 360,334 320,718 5,055,120 5,055,120 5,055,120 5,055,120
3,655,126 452,726 896,260 13,962 36,551 308,466 61,879 51,411 476,114 5,952,494 4,329,709 407,743 4,737,452 4,737,452 4,737,452 4,737,452
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SMEDA
4,365,287 4,365,287
825,048 825,048
2,883,701
3,952,763
3,952,763
3,952,763
5,190,335
5,190,335
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SMEDA
Financing activities Issuance of shares 1,960,206 Cash provided by / (used for) financing activitie1s ,960,206 Investing activities Capital expenditure Acquisitions Cash (used for) / provided by investing activ NET CASH
923,495 923,495
1,069,061 1,069,061
1,237,572 1,237,572
(205,691)
164,802
1,500,085
2,575,500
4,418,477
4,893,870
5,313,171
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