The Utility Stores Corporation (USC) of Pakistan is a State-owned enterprise that operates chain stores throughout the country whose main purpose is to provide basic commodities to the general public at lower prices than the open market. But due to the supermarkets, buyers prefer to go there than to utility stores because Its better to visit to supermarkets which have much better environment than to wait in queues outside the utility stores. The Utility Stores' performance is declining day by day BECAUSE they aren’t able to manage their working capital properly.

1. Working Capital, Growth And
Financial Needs, Foundations Of
New Venture Valuation

2. 1. Working Capital
• The capital of a business which is used in its day-to-day trading
operations.
• To be successful in short run, management of working capital is
significantly important for firms. It focuses on achieving short
term goals.
• Working capital has a direct impact on profitability of firms.
• This strategy is useful for those businesses which are declining,
so to strengthen their position it is advised to utilize and manage
their working capital of business in order to sustain.
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3. • The Utility Stores Corporation (USC) of Pakistan is a
State-owned enterprise that operates chain stores
throughout the country whose main purpose is to
provide basic commodities to the general public at
lower prices than the open market.
• But due to the supermarkets, buyers prefer to go
there than to utility stores because Its better to visit
to supermarkets which have much better
environment than to wait in queues outside the
utility stores.
• The Utility Stores' performance is declining day by
day BECAUSE they aren’t able to manage their
working capital properly.
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4. • Keeping in mind
the main purpose
of providing basic
commodities at
lower prices.
• It is decided that
the credit should
be provided to USC
by the NBP
(National Bank Of
Pakistan) to cater
its working capital
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5. 2. Growth And Financial Needs
• In order to grow and to be sustain, it’s important to estimate the
financial needs before starting a new business.
• Two main financial needs:
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Short Term Financial Needs
• Working capital.
• To run day to day business activities.
• Duration: less than 1 year.
Long Term Financial Needs
• Fixed capital.
• To finance in fixed assets like plants &
machinery.
• Duration: more than 1 year.

6. USC Following Short Term Financial Needs
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• Corporation's chairman Zulqarnain ali khan, encouraged
employees to start facilitating people during the holy
month of Ramzan. It is the right time to back in business.
• In this month, the spending increases and people are
more frequently to spend and buy.
• By meeting these short term goals, it is expected that
the utility stores will start working again in Pakistan.

7. 3. Foundations Of New Venture Valuation
• If one thinking of investing money into one venture, it's important to
determine the company's worth first by doing the venture valuation.
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Determine business's value by
total up all the investments in
the business.
Determine business's value by
estimating how much it can
earn in the future
Determine the value by comparing
the business to similar businesses
that have recently sold.

8. USC Venture Valuation On ‘Earning Value Approach’
• Zulqarnain ali khan said that if this industry was developed, it
could
oCapture around $20 billion market
oReduce dependence on imports
oHelp create employment opportunities, and
oResultantly boost economic development of the country.
• The USC is having less than 1% share in consumer market of
Pakistan right now, but if enhanced up to 10%, it would help
take its sales up to around $7.5 billion.
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9. THANK YOU !
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