Pre-Feasibility Study

VETERINARY CLINIC

Small and Medium Enterprises Development Authority

Ministry of Industries & Production
Government of Pakistan
www.smeda.org.pk
HEAD OFFICE
4th Floor, Building No. 3, Aiwan-e-Iqbal Complex, Egerton Road,
Lahore
Tel: (92 42) 111 111 456, Fax: (92 42) 36304926-7
helpdesk@smeda.org.pk
REGIONAL OFFICE
PUNJAB

REGIONAL OFFICE
SINDH

REGIONAL OFFICE
KPK

REGIONAL OFFICE
BALOCHISTAN

3rd Floor, Building No. 3,

Aiwan-e-Iqbal Complex,
Egerton Road Lahore,
Tel: (042) 111-111-456
Fax: (042) 36304926-7
helpdesk.punjab@smeda.org.pk

5TH Floor, Bahria

Complex II, M.T. Khan Road,
Karachi.
Tel: (021) 111-111-456
Fax: (021) 5610572
helpdesk-khi@smeda.org.pk

Ground Floor
State Life Building
The Mall, Peshawar.
Tel: (091) 9213046-47
Fax: (091) 286908
helpdesk-pew@smeda.org.pk

Bungalow No. 15-A

Chaman Housing Scheme
Airport Road, Quetta.
Tel: (081) 831623, 831702
Fax: (081) 831922
helpdesk-qta@smeda.org.pk

June 2006

Pre-feasibility

Veterinary Clinic

DISCLAIMER........................................................................................................................................ 3
1

INTRODUCTION TO SMEDA.................................................................................................... 4

PURPOSE OF THE DOCUMENT ............................................................................................... 4

CRITICAL SUCCESS FACTORS IN DECISION MAKING FOR INVESTMENT.................. 5

3.1
3.1 SWOT ANALYSIS........................................................................................................... 5
3.1.1
Strengths ........................................................................................................................... 5
3.1.2
Weaknesses........................................................................................................................ 6
3.1.3
Opportunities..................................................................................................................... 6
3.1.4
Threats .............................................................................................................................. 6
3.2
KEY SUCCESS FACTORS.................................................................................................... 6

PROJECT PROFILE.................................................................................................................... 6
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8

OPPORTUNITY RATIONALE.............................................................................................. 6
PROJECT BRIEF................................................................................................................... 7
MARKET ENTRY TIMING .................................................................................................. 7
PROPOSED BUSINESS LEGAL STATUS ............................................................................ 7
PROPOSED LOCATION....................................................................................................... 8
PROJECT CAPACITY........................................................................................................... 8
PROJECT INVESTMENT ..................................................................................................... 8
RECOMMENDED PROJECT PARAMETERS ...................................................................... 9

PROJECT ORGANIZATION ...................................................................................................... 9

5.1
5.2
5.3

LABORATORY .................................................................................................................... 9
SURGICAL SUITES.............................................................................................................. 9
PHARMACY....................................................................................................................... 10

SECTOR CHARACTERISTICS................................................................................................ 10

LAND & BUILDING REQUIREMENT .................................................................................... 12

7.1
7.2

LAND REQUIREMENT...................................................................................................... 12
BUILDING REQUIREMENT .............................................................................................. 12

TOOLS & EQUIPMENTS.......................................................................................................... 13

FITTINGS & INSTALLATIONS ............................................................................................... 14

10

OFFICE EQUIPMENTS............................................................................................................. 14

11

FURNITURE & FIXTURES....................................................................................................... 14

12

VEHICLES.................................................................................................................................. 15

13

HUMAN RESOURCE................................................................................................................. 15

14

FINANCIAL ANALYSIS............................................................................................................ 16
14.1
14.2
14.3

15

PROJECTED INCOME STATEMENT ................................................................................ 16

PROJECTED BALANCE SHEET ........................................................................................ 17
PRJECTED CASH FLOW STATEMENT ............................................................................ 18

ASSUMPTIONS .......................................................................................................................... 19
15.1
15.2
15.3
15.4
15.5

PROJECT ASSUMPTIONS ......................................................................................................... 19

OPERATING ASSUMPTIONS .................................................................................................... 19
DEPRECIATION RATE ASSUMPTIONS ...................................................................................... 19
WORKING CAPITAL TURNOVER ASSUMPTIONS ....................................................................... 19
LONG TERM LOAN ................................................................................................................ 19

Pre-feasibility

Veterinary Clinic

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:
www.smeda.org.pk

DOCUMENT CONTROL
Document No.

PREF-95

Prepared by

SMEDA-Punjab

Issue Date

June 2006

Issued by

Library Officer

PREF-95/June, 2006/ Rev 1

Pre-feasibility

Veterinary Clinic

INTRODUCTION TO SMEDA

The Small and Medium Enterprise 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 sectors including, Fruits and
Vegetables, Marble and Granite, Gems and Jewelry, Marine Fisheries, Leather and
Footwear, Textiles, Surgical Instruments, Transport and Dairy. Whereas the task of SME
development at a broader scale still requires more coverage and enhanced reach in terms
of SMEDAs 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.

PURPOSE OF THE DOCUMENT

The objective of this proposed Pre-feasibility study is primarily to facilitate potential

entrepreneurs with the Investment information and provide an overview about the
"Veterinary Clinical Services." This pre-feasibility may form the basis of an important
investment decision and in order to serve this objective, the document covers various
aspects of Veterinary Clinical Services concept development, start-up, operations,
marketing, finance and management. This document also provides Sectoral Information
brief on Government Policies, which have some bearing on the Project itself.
This Pre-feasibility is based on the information obtained from various sources as well as
discussions with vets. For Financial Model since the forecast / projection relate to the
future periods, actual results are likely to differ because of the events and circumstances
that do not occur frequently as expected.
Whilst, due care and attention has been taken in performing the exercise, no liability can
be inferred for any in-accuracy or omissions reported from the results thereof. It is

PREF-95/June, 2006/ Rev 1

Pre-feasibility

Veterinary Clinic

essential that our report be read in its entirety, with the financial model in order to fully
comprehend the impact of key assumption on the range of values determined.
This pre-feasibility is regarding "Veterinary Clinic". The project shall render services
primarily to the live stock & poultry farmers. This project will also provide services to
pet owners. Before studying the whole document one must consider following critical
aspects, which forms basis of any Investment Decision.

CRITICAL SUCCESS FACTORS IN DECISION MAKING FOR

INVESTMENT
3.1 SWOT ANALYSIS

3. 1

Before making the decision, whether to invest in the Veterinary Clinic or not, one
should carefully analyze the associated risk factors. A SWOT analysis can help in
analyzing these factors, which can play important role in making the decision.
3.1.1 Strengths

An early diagnosis usually leads to accurate and successful treatment of

diseased animals with this objective in mind Clinics diagnostic laboratory is
established to render services to live stock , poultry and also to the pet owners
to formulate preventive measures for avoiding possible mortality losses of
these animals in particular and economical to the industry in general.

The Project shall have its own sophisticated veterinary disease diagnostic
laboratory. This gives an added advantage to the project in comparison with
the existing hospitals & veterinary institutions.

Availability of the services of qualified Vet doctors and trained staff in the
fully equipped surgical suite and Intensive Care Unit to perform routine
surgeries and handle emergency cases.

As per live stock survey 2004-05, a large number of animals i.e 25% of the
total population gets diseases due to their exposure to pollution and
unhygienic conditions of their sheds environment and only 29% of the total
animals requiring treatment are being treated in Punjab due to lack of
education, motivation and also due to the lack of vet medical facilities. The
project is however aimed to provide high quality & timely services.

As per live stock census the population of livestock is increasing day by day.
The project is therefore expected to cover a wide range of area to perform its
activities, such as Sahiwal, Pakpattan & Chichawattni etc.

The main competitors in this sector are the services from un-organized
sectors. However the project shall have edge over these services due to the
availability of the qualified staff and better veterinary treatment.

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Veterinary Clinic

3.1.2 Weaknesses

This sector is highly un-organized as large number of practitioners without

proper qualification is in this field, and has covered large area.

High staff turnover rate in this sector.

There is a shortage of qualified veterinary doctors in the market as they are

neither practically engaged nor they want to engage themselves in Veterinary
Clinical Services.

3.1.3 Opportunities

Only 29% of the total animals requiring treatment are being treated in Punjab
due to lack of owners awareness and medical facilities. This gives an added
advantage to the project.

The project has its own veterinary laboratory and surgical departments which
shall increase the efficiency & quality of the staff.

3.1.4 Threats

3. 2

Failure to serve the projected market

Expected losses at the initial stages of the project as this factor largely
depends upon the captured market.

In live stock completed surgery can create post operation complications thats
why livestock that need complicated surgery are oftenly slaughtered.
KEY SUCCESS FACTORS

Location of the project will play a vital role in the successful running of the
veterinary clinic. This sector is highly un-organized as non qualified people are also
providing veterinary services thus consuming large market. The key success of this
project is to cover the maximum area of the operation and capture the market through
better standards. Another important success factor is the staff turnover which is
considered to be very high in this sector. The staff should be retained by giving
incentives or at least alternative arrangements in the case of emergencies. The staff
should be responsive to clients demands and requirements.

4
4. 1

PROJECT PROFILE
OPPORTUNITY RATIONALE
This sector is in its early stages. The major reason for slow development process has
been the lack of education, motivation and mobilization to the relevant stake holders
to enter this field. A large number of sacrificial animals get diseases due to their
exposure to unfavorable environment and unhygienic conditions of the sheds.
As per live stock survey 2004-05, only 29% of the total animals requiring treatment
are being treated in Punjab. 25 per cent animals are suffering from one disease or the

PREF-95/June, 2006/ Rev 1

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Veterinary Clinic

other. However, all these diseases are curable and there is little chance that they
would affect human beings. The most common diseases are foot and mouth disease
(FMD), diarrhea, fever, respiratory inspections like pneumonia etc. The application of
basin mixed water, which creates gastritis among the animals to make them look
fatty, is the main cause for illness. The animals are also forced to over-eat to look
healthy and fetch better price. The children even offer fruit, bread to their lambs.
The population of animals is increasing day by day however clinical facilities to these
animals are lacking currently in Pakistan. This creates an opportunity for Veterinary
Clinic to be set up.
PROJECT BRIEF

4. 2

Veterinarians are considered vets from all sorts of fields, from the easier professions
like kennel owners and dog groomers to the more difficult ones like surgeons and
farm vets. Doctors of veterinary medicine are medical professionals, whose primary
responsibility is protecting the health and care for animals and pets.
The main assumption underlying this pre-feasibility is that the project is a full service
facility with veterinarians and staff on duty 24 hours a day, 7 days a week to provide
the highest standard of quality, dependable animal health care, and compassion in
veterinary care for the patients and welcoming, informative, and supportive service
for the clients, while maintaining a superior working environment for the employees.
The project will provide the following facilities to the livestock and poultry farmers.

4. 3

Health check

Vaccination

Treatment

Minor and major surgeries.

MARKET ENTRY TIMING

Since the medical facilities provided by the veterinary clinic and hospitals are
inadequate and below standard, therefore large number of animals die each year due
to improper treatment. Moreover the population of the animals is increasing day by
day, generating more opportunities for veterinary clinics at any time during the year.
4. 4

PROPOSED BUSINESS LEGAL STATUS

The said project can be a sole proprietorship or a partnership. The selection totally
depends upon the choice of the entrepreneur. This pre-feasibility assumes the legal
status of a sole proprietorship.

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Pre-feasibility
4. 5

Veterinary Clinic

PROPOSED LOCATION
Selection of district or particular city of the project has an imperial effect on the
project itself. The proposed location should be near the area where population of
animals is greater in numbers. The project may be set up at Sargodha, Sheikhupura or
Sahiwal. The project Proposed location for the veterinary hospital is however
recommended at Sahiwal.

4. 6

PROJECT CAPACITY
The project shall provide services 24 hours a day and 7 days a week. The capacity of
the project for treating the animals is as follows:
Table 1 - Project Capacity

Large Animals (cattle, Buffaloes, Camels, Horses etc.)

Soft Tissue Surgery Minor
1
Soft Tissue Surgery Major
2
Hard Tissue Surgery Orthopedic
3
Out Door animals
4
Artificial Insemination
5
Castration
6
Parturition Cases
7
Small Animals (Goats and Sheep etc.)
Soft Tissue Surgery Minor
1
Soft Tissue Surgery Major
2
Hard Tissue Surgery Orthopedic
3
Out Door Fee per animal
4
Indoor patients Admission
5
Castration
6

4. 7

150
50
20
3,285
1,500
200
700
200
100
25
2,555
350
2,000

PROJECT INVESTMENT
The Total cost of the project is given below:
Table 2: Project Cost
Capital Investment
Working Capital Requirements

6,511,650
507,691

Total Investment

PREF-95/June, 2006/ Rev 1

7,019,341

Pre-feasibility

Veterinary Clinic

RECOMMENDED PROJECT PARAMETERS

4. 8

Table 3: Project Parameters

Capacity / annum
Human
Technology/Machinery
Location
Resource
11,135 cases
23
Local
Sahiwal
Financial Summary
Project Cost
IRR
NPV
Pay Back Period
7,019,341
25.58%
2,032,525
4.38 years

PROJECT ORGANIZATION

The project shall consist of following departments.

LABORATORY

5. 1

An early diagnosis usually leads to accurate and successful treatment of the diseased
animal. With this objective in mind Clinics diagnostic laboratory needs to be
established to render diagnostic services to the livestock and poultry farmers and also
to the pet owners to do a variety of tests
It is pertinent to mention here that the production potentials of the animals are mostly
hindered by many infectious diseases, lack of proper nutrition and other management
problems. Infectious diseases that constitute a major threat to the health and
productivity of the animals and poultry cause over 80 per cent losses of livestock and
poultry. Viral diseases are of major economic importance as they cause very high
morbidity and mortality and may leave the farmers out of their business. So after the
occurrence of the disease, the only option left is the prompt and accurate diagnosis of
the disease.
Clinics Diagnostic Laboratory should have almost all those diagnostic facilities for
routine monitoring of the livestock herds, poultry flocks and farms to formulate
preventive measures for avoiding possible mortality losses of animals in particular
and economical losses to the industry in general.
SURGICAL SUITES

5. 2

The Project shall have a fully equipped surgical suite and a well-trained staff ready to
perform surgeries at all times. Having a suite will enable to perform many
complicated as well as routine surgeries. Preoperative blood profiles shall be
performed in-house lab before the patient is anesthetized. The proposed project is
expected to perform various surgeries categorized as follows:

Orthopedic Surgeries

Soft Tissue Surgeries

PREF-95/June, 2006/ Rev 1

Pre-feasibility
5. 3

Veterinary Clinic

PHARMACY
The Project shall operate a fully equipped pharmacy run by a licensed Veterinary
Compounder. This allows taking the animals medications home after the
appointment. In addition, he shall also be available to answer any queries about right
and timely medication of the animals.

SECTOR CHARACTERISTICS

According to the Dr. Muhammad Qaseem, Assistant Chief (Evaluation) Planning and
Evaluation, Livestock & Dairy development, Punjab, Lahore, only 29% of the above
animals are treated by the veterinary doctors and the remaining are un-treated.
According to the Directorate of animal health, Livestock & Dairy development, Punjab,
Lahore total veterinary doctors are 830 & veterinary assistants are 2433 in Punjab in
2005.
Table 4 Number of veterinary Hospitals, Dispensaries & centers by District, the Punjab1
Districts
Veterinary Hospitals
Veterinary Dispensaries
Veterinary centers
Lahore
24
26
Kasur
13
13
82
Okara
17
14
52
Skeikhupura
21
39
99
MUltan
15
22
43
Khanewal
10
15
57
Lodhran
7
7
19
Pakpattan
3
14
26
Sahiwal
6
25
58
Vehari
17
41
29
Rawalpindi
11
25
76
Attock
8
34
54
Chakwal
11
27
39
Jhelum
10
11
35
Sarghoda
28
32
91
Bhakkar
7
43
44
Khushab
11
20
41
Mianwali
21
3
49
Faisalabad
34
32
108
Jhang
22
54
94
Toba tek sing
20
15
65
Bahawalpur
17
69
77
Bahawalnagher
21
27
93
Rahim Yar Khan
26
38
95
1

Directorate of Animal Health, Livestock & Dairy development, Punjab, Lahore.(List can be checked from
Lahore Dairy Development Website)

PREF-95/June, 2006/ Rev 1

10

Pre-feasibility

Veterinary Clinic

Gujranwala
Hafizabad
Gujrat
Mandi Bahau Din
Sialkot
Pro design
Dera ghazi khan
Muzaffargarh
Rajan Pur
Layyah

17
8
18
12
11
11
11
15
9
6

14
12
13
8
14
10
18
17
11
14

Table 5 Number of cattle, Buffaloes, Sheep & Goats2

(in 000)
Districts
Cattle
Buffaloes
Bahawalpur
Bahawalnagher
Rahim Yar Khan
Dera ghazi khan
Layyah
Muzaffargarh
Rajan pur
Faisalabad
Jhang
Toba tek sing
Gujranwala
Gujrat
Hafizabad
Mandi Bahau Din
Narrowal
Sialkot
Lahore
Kasur
Okara
Skeikhupura
MUltan
Khanewal
Lodhran
Pakpattan
Sahiwal
Vehari
2

1996
288
272
250
320
267
600
314
332
625
220
163
89
138
155
125
195
77
191
214
361
340
280
186
122
186
208

2000
277
262
213
280
327
584
283
299
561
191
140
188
92
124
136
123
81
170
204
263
323
285
198
90
129
193

1996
464
527
573
167
205
392
166
941
842
364
509
285
266
400
236
471
264
536
628
743
379
486
323
413
511
470

Livestock Censes 1996 & 2000)

PREF-95/June, 2006/ Rev 1

11

80
31
48
32
82
66
58
59
29
38

Sheep
2000
427
614
564
152
213
414
163
854
852
378
645
253
333
390
251
280
327
569
665
683
355
475
211
411
461
496

1996
158
179
111
362
315
337
370
80
417
63
77
46
8
31
24
42
29
103
135
136
99
165
94
62
78
117

Goats
2000
95
185
76
256
275
312
220
66
284
57
66
9
24
17
25
28
27
94
77
101
114
147
67
44
54
83

1996
714
735
999
573
347
700
362
851
780
537
160
128
145
153
121
137
80
269
349
420
471
617
400
305
532
515

2000
674
740
971
437
373
685
346
731
654
435
92
121
86
124
124
99
67
197
272
290
392
607
371
229
386
531

Pre-feasibility
Rawalpindi
Attock
Chakwal
Jhelum
Sarghoda
Bhakkar
Khushab
Mianwali

Veterinary Clinic
250
313
274
183
425
365
217
323

256
334
306
131
421
318
207
316

173
121
100
153
575
195
118
137

178
117
135
120
601
166
123
120

21
160
125
46
143
402
180
246

Table 6 Livestock Population (in Millions)3

Financial
Buffaloes Cattle Goats Sheep Poultry Camels
years
2000-01
23.3
22.4
49.1
24.2
292.4
0.8
2001-02
24.0
22.8
50.9
24.4
330.0
0.8
2002-03
24.8
23.3
52.8
24.6
346.1
0.8
2003-04
25.5
23.8
54.7
24.7
352.6
0.8
2004-05 P
26.3
24.2
56.7
24.9
366.0
0.8

7
7. 1

10
156
100
42
101
284
92
151

288
371
378
349
633
438
394
455

Asses

Horses

3.9
3.9
4.1
4.1
4.2

0.3
0.3
0.3
0.3
0.3

LAND & BUILDING REQUIREMENT

LAND REQUIREMENT
Land for the proposed business can be acquired on rent or it can be purchased based
on the judgment of the entrepreneur. It is however recommended to purchase the
Land because the project of Hospital is assumed to be set- up in Sahiwal, Where the
Land price is Rs. 1,000,000/- per Kanal. The total land requirement for this proposed
project is assumed to be of approximately one & half Kanals.
Table 7: Land Requirement
Items

Total land
(kanals)

Land Requirement

7. 2

1.5

Rate per
kanal
1,000,000

Total
Rupees
1,500,000

BUILDING REQUIREMENT
Following Table shows the detailed building requirements for the Project. The break up of the required area and construction cost is produced below:

Economic Survey of Pakistan, Live Stock Wing 2004/05)

PREF-95/June, 2006/ Rev 1

12

293
415
449
174
473
440
351
398

Mules
0.2
0.2
0.2
0.2
0.3

Pre-feasibility
Table 8: Civil Works
Building & Civil works

Veterinary Clinic

Space
Required in
Sq. ft

Animal Sheds
Operation Theater
Management Office
Pharmacy
Doctors Rooms
Veterinary Assistants' Room
Laboratory
Kitchen
Wash Rooms
Waiting Room/Reception

1,000
500
400
400
360
200
350
80
108
352

Lawn / Garden
Total Infrastructure Cost

3,000
6,750

Construction
Cost
(Per Sq. Ft.)
Rupees
450
600
700
700
700
650
700
600
500
550
100

Total Cost

Rupees
450,000
300,000
280,000
280,000
252,000
130,000
245,000
48,000
54,000
193,600
300,000
2,532,600

TOOLS & EQUIPMENTS

Details of Tools & equipments required are given below:

Table 9: Tools & Equipments
Item

Qty.

Surgical Kit

Unit Cost
Rs.
10,000

Dystocia Kit
Refrigerator

1
1

5,000
18,000

5,000
18,000

Lab Equipment
- Micro Scope (Binocular)
- Blood Analyzer

1
1

45,000
350,000

45,000
350,000

- Centrifugal Machine
- Autoclave Machine
Other Lab equipments

1
1
1

35,000
12,000
35,000

35,000
12,000
35,000

Total

PREF-95/June, 2006/ Rev 1

Total
Rs.
10,000

510,000

13

Pre-feasibility

Veterinary Clinic

FITTINGS & INSTALLATIONS

Given below are the details of Fittings & Installation:

Table 10: Fittings & Installations
Item

Qty.

Air Conditioners
Generator 165 KVA - Local

2
1

Electric Installations
Water Pump ( 2.0 H.P ) including boring 150

Unit Cost
Rs.
20,000
50,000

Total
Rs.
40,000
50,000

15,000

50,000
15,000
155,000

10 OFFICE EQUIPMENTS
Following Office Equipment would be required:
Items

Qty.

Computers
Printer
Fax Machine
Tele Phone Exchange
Mobile Phone Sets
Telephone Sets
Total

2
1
1
1
9
5

Unit Cost
Rs.
20,000
15,000
10,000
15,000
3,500
500

Total
Rs.
40,000
15,000
10,000
15,000
31,500
2,500
114,000

11 F U R N I T U R E & F I X T U R E S
Furniture & Fixtures required are listed below:
Table 11: Furniture & Fixtures
Qty.

Unit Cost
Rs.

Total
Rs.

Doctors' Room Tables

7,500

22,500

Veterinary Assistants' Room Tables

Pharmacy Table

3
1

4,500
4,500

13,500
4,500

Laboratory Table

4,500

4,500

Operation Theatre - Steel Table

6,500

13,000

Computer Tables

2,000

4,000

Management Room Table

6,500

13,000

PREF-95/June, 2006/ Rev 1

14

Pre-feasibility

Veterinary Clinic

Reception Table
Doctors' Room Chairs

1
3

3,500
1,500

3,500
4,500

Veterinary Assistants' Room Chairs

750

4,500

Pharmacy Chair

550

550

Laboratory Chairs

550

1,100

Computer Chairs

450

900

Management Room Chairs

Visitors' Chairs

1
10

1,500
350

1,500
3,500

Pharmacy Cabins

30,000

Total

125,050

12 VEHICLES
Following vehicles would be required at the clinic to cater outdoor services:
Table 12: Vehicles
Qty.
Jeeps
Motorcycles

2
5

Unit Cost
Total
Rs.
Rs.
650,000 1,300,000
55,000
275,000
1,575,000

13 HUMAN RESOURCE
Following table shows the requirements of Human Recourses in this project:
Table 13: Human Resource Requirement
Description

Admin. & Finance Manager

Accounts Officer
Veterinary Doctors
Pharmacy Technician
Veterinary Assistants
AI Technicians
Receptionist / Operator
Security Guard, Gate Keepers
Office Boys
Sweeper
Total Administrative Salaries

PREF-95/June, 2006/ Rev 1

15

Number
of
Employees
1
1
4
2
6
2
1
2
2
2

Monthly
Salary
15,000
5,000
15,000
4,500
5,000
5,000
4,500
4,000
3,000
2,000

Annual
Salary
180,000
60,000
720,000
108,000
360,000
120,000
54,000
96,000
72,000
48,000
1,818,000

Pre-feasibility

Veterinary Clinic

14 FINANCIAL ANALYSIS
14. 1

PROJECTED INCOME STATEMENT

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

Year 9

Year 10

INCOME
EXPENDITURES
Salaries & wages

5,094,626

7,456,366

8,118,105

8,871,674

9,730,768

10,711,182

11,831,126

13,111,608

14,576,856

16,254,826

1,818,000

1,999,800

2,199,780

2,419,758

2,661,734

2,927,907

3,220,698

3,542,768

3,897,044

4,286,749

Medicines & Supplies

1,694,175

1,778,884

1,867,828

1,961,219

2,059,280

2,162,244

2,270,357

2,383,874

2,503,068

2,628,221

Utility Charges

61,136

64,192

67,402

70,772

74,311

78,026

81,927

86,024

90,325

94,841

Telephone, Mobile & Postage

50,946

53,494

56,168

58,977

61,926

65,022

68,273

71,687

75,271

79,034

Vehicle Running Expenses

509,783

535,273

562,036

590,138

619,645

650,627

683,158

717,316

753,182

790,841

Vehicle Repair &

Maintenance
Promotional Expenses
Traveling & Conveyance

157,500

165,375

173,644

182,326

191,442

201,014

211,065

221,618

232,699

244,334

202,000
10,189

212,100
10,699

222,705
11,234

233,840
11,795

245,532
12,385

257,809
13,004

270,699
13,655

284,234
14,337

298,446
15,054

313,368
15,807

Printing & Stationary

15,284

16,048

16,850

17,693

18,578

19,507

20,482

21,506

22,581

23,710

Entertainment
Vehicle Insurance

25,473
50,400

26,747
40,320

28,084
32,256

29,488
25,805

30,963
20,644

32,511
16,515

34,136
13,212

35,843
10,570

37,635
8,456

39,517
6,765

103,100

108,254

113,667

119,351

125,318

131,584

138,163

145,071

152,325

159,941

Depreciation
Total Expenses

532,035
5,230,021

453,663
5,464,848

389,112
5,740,766

335,755
6,056,917

291,480
6,413,237

254,586
6,810,357

223,705
7,249,531

197,731
7,732,580

175,774
8,261,861

157,112
8,840,242

Profit before Taxation

(135,395)

1,991,518

2,377,339

2,814,757

3,317,532

3,900,825

4,581,596

5,379,028

6,314,996

7,414,584

Taxation

(47,388)

697,031

832,069

985,165

1,161,136

1,365,289

1,603,558

1,882,660

2,210,248

2,595,104

Profit after Taxation

Repair & Maintenance

(88,007)

1,294,487

1,545,270

1,829,592

2,156,396

2,535,536

2,978,037

3,496,368

4,104,747

4,819,480

Accumulated Profit B/F

(88,007)

1,206,480

2,751,751

4,581,343

6,737,738

9,273,274

12,251,312

15,747,680

19,852,427

Accumulated Profit C/F

(88,007)

1,206,480

2,751,751

4,581,343

6,737,738

9,273,274

12,251,312

15,747,680

19,852,427

24,671,906

PREF-95/June, 2006/ Rev 1

16

Pre-feasibility

14. 2

Veterinary Clinic

PROJECTED BALANCE SHEET

Tangible Fixed Assets

Current Assets:
Stock of Medicines
Stores & Spares
Advances, Deposits & Other
Receivables
Cash in Hand / Bank

Year - 1

Year - 2

Year - 3

Year - 4

Year - 5

Year - 6

Year - 7

Year - 8

Year - 9

Year - 10

5,979,615

5,525,952

5,136,840

4,801,086

4,509,606

4,255,020

4,031,315

3,833,584

3,657,810

3,500,698

139,247

146,210

153,520

161,196

169,256

177,719

186,605

195,935

205,732

216,018

21,419

22,490

23,615

24,795

26,035

27,337

28,704

30,139

31,646

33,228

197,521

209,720

223,883

240,018

258,171

278,422

300,878

325,678

352,988

383,000

844,028

2,936,444

4,260,354

5,833,123

7,711,257

9,959,893

13,380,941

17,360,006

21,974,328

27,342,418

1,202,216

3,314,863

4,661,371

6,259,132

8,164,720

10,443,371

13,897,127

17,911,758

22,564,693

27,974,664

7,181,831

8,840,815

9,798,212

11,060,218

12,674,326

14,698,391

17,928,442

21,745,342

26,222,503

31,475,362

3,509,671

3,509,671

3,509,671

3,509,671

3,509,671

3,509,671

3,509,671

3,509,671

3,509,671

3,509,671

(88,007)

1,206,480

2,751,751

4,581,343

6,737,738

9,273,274

12,251,312

15,747,680

19,852,427

24,671,906

3,421,664

4,716,151

6,261,421

8,091,014

10,247,409

12,782,945

15,760,982

19,257,350

23,362,097

28,181,577

2,807,737

2,105,802

1,403,868

701,934

701,934

701,934

701,934

701,934

701,934

139,247

146,210

153,520

161,196

169,256

177,719

186,605

195,935

205,732

216,018

158,637

252,578

273,425

296,136

320,887

347,870

377,296

409,397

444,426

482,663

221,109

171,974

122,838

73,703

24,568

(47,388)

697,031

832,069

985,165

1,161,136

1,365,289

1,603,558

1,882,660

2,210,248

2,595,104

952,430

2,018,862

2,132,922

2,267,270

2,426,917

1,915,445

2,167,459

2,487,991

2,860,406

3,293,785

7,181,831

8,840,815

9,798,212

11,060,218

12,674,326

14,698,391

17,928,442

21,745,342

26,222,503

31,475,362

Owners Equity:
Capital Introduced
Accumulated Profits

Long Term Loan

Current Liabilities:
Current Portion of Long
Term Loan
Accounts Payable
Accrued Charges
Mark - up payable
Provision for Taxation

PREF-95/June, 2006/ Rev 1

17

Pre-feasibility

14. 3

Veterinary Clinic

PRJECTED CASH FLOW STATEMENT

Year - 1

Year - 2

Year - 3

Year - 4

Year - 5

Year - 6

Year - 7

Year - 8

Year - 9

Year - 10

(135,395)

1,991,518

2,377,339

2,814,757

3,317,532

3,900,825

4,581,596

5,379,028

6,314,996

7,414,584

532,035

453,663

389,112

335,755

291,480

254,586

223,705

197,731

175,774

157,112

396,640

2,445,181

2,766,451

3,150,512

3,609,011

4,155,411

4,805,301

5,576,759

6,490,769

7,571,696

Stock of Medicines
Stores & Spares

(139,247)
(21,419)

(6,962)
(1,071)

(7,310)
(1,125)

(7,676)
(1,181)

(8,060)
(1,240)

(8,463)
(1,302)

(8,886)
(1,367)

(9,330)
(1,435)

(9,797)
(1,507)

(10,287)
(1,582)

Advances, Deposits & Other

Receivables
Accrued Charges

(197,521)

(12,199)

(14,163)

(16,135)

(18,153)

(20,250)

(22,456)

(24,800)

(27,309)

(30,013)

158,637

93,941

20,847

22,711

24,751

26,983

29,426

32,101

35,029

38,237

221,109

(49,135)

(49,135)

(49,135)

(49,135)

(24,568)

(199,551)

294,818

(50,886)

(51,416)

(51,837)

(52,167)

(27,851)

(3,465)

(3,584)

(3,645)

3,509,671

3,509,671
7,019,341
7,216,431

2,739,999

2,715,565

3,099,096

3,557,174

4,103,244

4,777,450

5,573,294

6,487,185

7,568,051

6,511,650
6,511,650

47,388
701,934
654,546

697,031
701,934
1,398,965

832,069
701,934
1,534,003

985,165
701,934
1,687,099

1,161,136
701,934
1,863,070

1,365,289
1,365,289

1,603,558
1,603,558

1,882,660
1,882,660

2,210,248
2,210,248

704,781

2,085,453

1,316,600

1,565,093

1,870,075

2,240,174

3,412,161

3,969,735

4,604,525

5,357,803

Opening Balance

704,781

2,790,234

4,106,834

5,671,926

7,542,001

9,782,175

13,194,336

17,164,071

21,768,597

Closing Balance

704,781

2,790,234

4,106,834

5,671,926

7,542,001

9,782,175

13,194,336

17,164,071

21,768,597

27,126,399

Profit before Taxation

Depreciation

Mark - up payable
Cash form other Sources
Sponsors' Equity
Debt Financing
Total Sources
Applications:
Fixed Assets
Income Tax paid
Re -Payment of Loan

Cash Increase/(Decrease)

PREF-95/June, 2006/ Rev 1

18

Pre-feasibility

Veterinary Clinic

15 ASSUMPTIONS
15. 1

Project Assumptions

Projected Life of The Project in Years

Sponsors' Equity
Debt Financing
Annual Mark Up Rate (Short Term & Long Term)
Debt Tenure in Years
General Inflation Rate
15. 2

Operating Assumptions

Total No. of Days in One Year

Total No. of Months in One Year
No of Working Days in One Year
15. 3

365
12
300

Depreciation Rate Assumptions

Land
Building
Tools & Equipment
Fittings & Installations
Office Equipments
Furnitures & Fixtures
Vehicles
15. 4

0%
5%
10%
10%
10%
10%
20%

of the Written Down Value

of the Written Down Value
of the Written Down Value
of the Written Down Value
of the Written Down Value
of the Written Down Value
of the Written Down Value

Working Capital Turnover Assumptions

Stock of medicines
Stores and Spares
Accounts Payable

30 Days medicines Consumption

30 Days Stores & Spares Consumption
Bills
Expenses

15. 5

10
50%
50%
14%
5
5%

30 Days of Total Annual Purchases

30 Days of Total Annual Expenditure

Long Term Loan

Term
Total Installments
Installments
Markup
PREF-95/June, 2006/ Rev 1

5 Years
10 bi-annually
2 per year
14% or 7.0%
19