INFORMATION MEMORANDUM AND SNAPSHOT OF FINANCIAL MODEL

Business’ Legal Name PAK DEOSAI (GHEBARSA) ENTERPISE

Legal Status of the business (check the relevant box below)

Sole Partnership Private Limited Public Limited

√
Proprietor Company Company
Yes √
Business is Registered with SECP No
Business NTN Number (if any) N/A
Business Bank Account Yes √ No

Applicant’s Full Name SYED TAHIR

Contact Details (give your details below)
Phone Number: (Mandatory) 02 Nos.
Email: (Mandatory)
Business Office Address:
Business Website (if any):
Year Business Established
Startup / Existing Business
Key Products/ Services of Business
Amount of Financing Requested
Your Present/ Current Investment in
Business
Your Expected Investment (Own) in Next
Five Years
0355-51015185, 0345-9602480
pakdeosai.enterprise@gmail.com
PATOWAL OLDING SKARDU
Facebook.com/pakdeosai.enterprise
2012
Existing
Milk, Yogurt, Butter, Wheat straw, Feeds
Pak Rupees 6,000,000/- (Six Million)
Pak Rupees 7,000,000/- (Seven Million)
Pak Rupees 3,000,000/- (Three Million)

Disclaimer: This document is a template being prepared to obtain information of the

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Contents
1. Industry and market overview.................................................................................................3
2. Background and history of business........................................................................................3
3. Legal status of business and ownership structure...................................................................4
4. Business operating model........................................................................................................4
5. Facilities, equipment and technology......................................................................................5
6. Marketing / sales......................................................................................................................6
7. Pricing plan...............................................................................................................................6
8. Management and employees...................................................................................................7
9. Key risks and assumptions........................................................................................................8
10. Financial position and future projections...........................................................................10
10.1.1 Profit and Loss Statement – Current and Projected.......................................................11
10.1.2. Balance Sheet - Projected..............................................................................................13
10.1.3. Cash flow Statement - Projected...................................................................................15

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 Note: Please refer to sample IM for gaining clarity on the questions below and the kinds of
answers sought from you.

1. Investment Thesis

Pak Deosai (Ghebearsa) Enterprise is registered under Partnership Act, 1932. There are
three partners having equal shares. Initially, each partner contributed 200000/-. Our firm is
not registered with SECP, we are working for registration with SECP and hopefully
completed within three to four months. Company is developing the article, memorandum
and audit reports for registration with SECP. As per partnership deed each partner invested
0.2 Million each initially. Pak Deosai firm has hardworking, dedicated and very professional
staffs working in their relevant fields. Every individual person in firm smoothly
implementing and supervising the organizational activities very well. Since the 2012 firm
management achieved many goals (given below) and objectives continuously also
improving the quality, customer satisfaction and marketing channels. Pak Deosai Enterprise
introduces many new ideasideas (home delivery service, milk collection center) in the field
of dairy sector in Baltistan. Milk collection and distribution system introduced in the
Baltistan, and also established the first hygienic processing unit in the Skrardu City. There is
a huge opportunity (population, milk shortage) for expansion of business in Baltistan
Region. The population of Skardu city increasing day by day and there is a huge shortage
(supply gape) of fresh dairy products in Skardu City. The population of SKardu is above three
hundred thousand peoples.

2. Industry and Market Overview

The demand of fresh milk in Skardu city is above fifty thousand liters per day and the
production of milk is less than the above demand. There are few suppliers (below one
thousand farmers) in the Skardu City. Fresh milk currently available in Skardu is less than
the total milk being consumed in the area by almost half (Source: GB Livestock Dept. and
AKRSP surveys). The remaining demand is generally met by other sources powder and
ultra-heat treatment (Mention some alternate products). Apart from the fact that large (50
percent of population) number of consumers are pretty used to of consuming powder and
ultra-heat treatment, fresh milk consumers are still substantial but increasing day by day. It
is important to note that due to traditionally dairy farming, the milk production pattern is
also seasonal that results into very less milk production in winter season. Thus, there is a
substantial population that switches to other sources of milk in winter season when fresh
milk is not available. This situation creates an opportunity to tap the fresh milk consumers
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 with round the year supply irrespective of summer or winter season and there comes the
possibility to establish a commercial dairy farm. Such dairy farm(s) established (upto 10
commercial dairy farms) on commercial basis can produce milk round the year and can
ensure its availability in the winter season also. There is also huge (more than 2000 kg per
day) market for yogurt, cheese ( more than 100 kg per day) and butter (more than 100 kg
per day). Due to shortage of fresh milk, yogurt and other dairy products are prepared by
using the powder.

3. Currently the local dairy farmers use the traditional marketing channels. Very least
number of farmers (in hundereds) and dairy milk collectors are existing in Skardu (town
area) city. The customers of dairy products are individual households, hotels, bakers,
officer’s mess and retail shops.
4. As per our survey and experience that the major Competitors of local dairy sectors are
Tetra pack milk like Nestle (Milk Pack), Engro Foods (Olpers), Haleeb (Haleeb Milk), and
other dried milk powder producers of down cities and tea whiteners(Names?).
5. Currently the local dairy farmers are not using the electronic and print media for the
promotion of their products because there is a huge ( demand is more than fifty
thousand liters per day) shortage of fresh milk. Only printed packaging materials are
used for the promotion of dairy products.

6. Background and History of Business

Pak Deosai Enterprise established in 2012 and starts a business of dairy farm in Skardu city.
Pak Deosai dairy farm is pioneer in dairy sector in Skardu city. Our business focuses on
dairy production and is all inclusive activity, related to animal care, reproduction, feeding
and management, milk collection and sale. All those aspects and activities relating to rising
of dairy animals during their various phases of life to get wholesome milk. The dairy sector
presents opportunities for employment generation, poverty alleviation and increase
income. A rapidly increasing population and high rates of urbanization are additional
driving forces of the demand for fresh and processed milk and products. Our emphasis is
on high quality milk, yogurt and other dairy products (cheese, butter). Minimizing the risk
by proper management of farm also use the milk preservation methods and market the
dairy products. Up to now we invested 5 million (rupees). We produced milk, yogurt,
butter and cheese. We also collect milk from other progressive framers at our milk
collection and sale point. The progressive farmer’s sale their extra milk, and earn the
handsome (more than ten thousand) money every month. We process this milk and
transform into yogurt, cheese and butter. The firm also provide the services to progressive
farmer like availability of wheat straw, feeds, silage at our fodder shop on reasonable price
as compare to market. The management of enterprise hires the youth staff for farm and
milk collection and sales point. We also provide the facility of bull center at reasonable
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 service charge (rupees eight hundred service charge per bull crossing). We provide home
delivery service also. Our yogurt sale at different place of Skardu city Bakeriess and shops.
We also focus on value addition (customer service, quality and hygienic dairy products).
Partners of our firm are highly educated and experienced in the dairy sector. Managing
partners applying their knowledge and skills to promote and strengthening the business.

Owners Profile

S No Name Designation Qualification Experience in Share in

dairy sector Business(%)
(Years)
01 Syed Tahir General DAE-Electrical 15 33.33
Manager
02 Muhammad Managing MBA-Finance 10 33.33
Abbas Partner
03 Muhammad Managing FA 12 33.33
Afzal Partner

Our mission, goals and objectives are given below

Mission Statement

Success through the marketing of high-quality dairy products

Goals

These are the goals of our business

1) To gain consumer trust and confidence

2) Highest levels of animal care and quality assurance

3) Profitable and , sustainable dairy farming

4) An environmentally- conscious dairy business

Objectives

1) Focus on the gender equality

2) To provide the dairy staff with sufficient facilities and support

3) Provide quality and fresh milk at door step of people's (consumers)

4) Increase the income of community

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 5) Employment opportunity among community

7. Legal Status of Business and Ownership Structure

Ownership: Who are the Name of Shareholder Number of Shares Share Capital
major stakeholders in the
company?
1 Syed Tahir 33.33 1595000
2 Muhammad Abbas 33.33 1595000
3 Muhammad Afzal 33.33 1595000

8. Business Operating Model

Top five revenue generating products / services include (or will include):

Key revenue generating products are given below;

 Milk Product revenue (70%)

 Yogurt Product revenue (15%)
 Butter Product revenue (5%)
 Other Dairy Products Revenue (10%)

Key expenses of the business are (or will be) in the following heads:

i. Cost of raw materials:

Our firm is purchasing the large (above 5 thousand liters per year) quantity of milk for
butter, yogurt, cheese and other dairy products.
ii. Cost of fodder:
Our firm also purchasing the wheat straw and silage for cows every (above 1000
bundles of wheat straw and silage) year.
iii. Rent:
We are also paying the rent of shops (two) and land.
iv. Cost of packaging materials:
Our firm is purchasing the large (above 1000 kg) quantity of packaging materials for
milk, yogurt, better etc.

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  How your business makes the revenue? (Stage wise i.e. sourcing raw material and
converting into finished product and then delivery to end consumer and after sale
services) (More rows can be added).

# Revenue Title Last year Average Revenue (PKR) Expected Revenue for this Year (PKR)
Milk Product
revenue 5,313,078 6,428,824
Yogurt
Product
revenue 1,125,122 1,361,398
Butter
Product
revenue 672,000 813,120
Other Dairy
Products
Revenue 7,052,600 8,533,646

 Top five revenue generating products / services include (or will include):

 Order Fulfilment: Describe the company`s Procedures for delivering services/selling of

products and how to keep track of the customer base, form of communications and how
best to manage sales and data. (Max 150 Words)

o Payment: Describe the standard payment terms and the payment methods
accepted. (Max 100 Words)

o Your products required Patent/license /registration?

 Top five expenses of the business are (or will be) in the following heads: (More rows can
be added).

# Expense Title Last year Expected Expense for this

Average Year (PKR)
Expense
(PKR)
1
Raw material expense 9,913,960 11,995,892

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 2 Salaries
588,000 617,400
3 outlet rent:
96,000 105,600
4 Transportation fuel - procurement and distribution purposes
64,440 67,662
5 Repairs and Maintenance expenses
40,000 52,500

9. Facilities, Equipment and Technology

What technology are you using now please specify in four to five sentences.

Technology: If technology is critical to the business, whether it is part of the service offering
or is fundamental to delivering a service or manufacturing/producing describe the key
technologies used that are proprietary. (Describe in MAX 200 words)

Utilization / breakdown of fund/investment on facilities, equipment, and technology

Existing Investments (More rows can be added).

S# Name of Assets Number of Unit Per unit cost (PKR) Total Amount
1. Cows 5
160000 800,000
2 Yogurt Boiler 1
Capacity 300 ltrs
420,000 420,000
3 Milk Chiller 1
Capacity 250 ltrs
326,667 326,667
4 Mobile Milk Chiller 1
Capacity 200 ltrs
466,667 466,667
5 Motor Cycle 70cc 1
40,500 40,500
6 Milk Testing Lab 1
90,000 90,000
7 Milk Collection and 1
Yogurt Processing
Unit
315,000 315,000
8 Commercial Dairy 1
Farm and Bull
Center
900,000 900,000
9 Fodder Shop 1
933,333 933,333
10 Chopper Machine 1
80,000 80,000
Deep 1
Freezer/Fridge 54,000 54,000
Batch processing 1 27,000 27,000
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 machine
Building Structure 1 450,000 450,000
Milk processing 1
unit 270,000 270,000

Future Investments (More rows can be added).

S# Name of Assets Number of Unit Per unit cost (PKR) Total Amount Justification
1. Wheat straw
presser will
reduce the cost
of wheat straw
purchased
from down
cities. This will
save above 50
rupees per
bundle cost,
due to
purchasing in
bulk and
packaging of
Wheat Straw wheat straw at
(Bosa) Presser 1 800000 800000 locally.
2 This will help
us to stock the
large quantity
(above ten
thousand
wheat straw
bundles in
summer
season). This
will minimize
the raw
Ware House 1 300000 300000 material costs.
3 This will
enhance the
quality
assurance of
fresh milk. This
analyzer
Digital Milk machine will
Analyzer identify the
Machine (Lacto low-quality
Meter) 1 400000 400000 milk.
4 Vehicle (Mazda) 1 1100000 1100000 Will increase
the sale of
wheat straw
business and
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 fodders.
5 Chillers will be
given to retail
shops, bakeries
Chiller to sale our
(Intercoolers) 1 350000 350000 dairy products
6 This will
enhance the
milk collection
Purchase of and
Mobile Milk distribution
Chiller 1 800000 800000 system.
7 Milk cans will
be distributed
among
progressive
farmers to
channelize the
surplus milk at
Purchase of Milk our collection
Cans 1 200000 200000 centers
8 Will overcome
the issues of
electricity
shortage and
Generator 1 300000 300000 milk spoilage
9 Will increase
the efficiency
of milk
packaging and
Packaging pasteurization
Machine for Milk 1 250000 250000 of milk
10 Will increase
the efficiency
of yogurt
Packaging packaging and
Machine for pasteurization
yoguart 1 250000 250000 of yogurt
Will be benefit
for progressive
farmers; we
will provide
low cost
fodders to
Purchase of progressive
Wanda, Khall 1 1350000 1350000 farmers
Purchase of 1 2000000 2000000 Will be benefit
(Wheat Straw) for progressive
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 farmers; we
will provide
low cost
fodders to
progressive
farmers
Packaging Improve
Materials for branding and
Milk, Yougurt, packaging
Butter ,Cheese 1 400000 400000
Wheat Straw Improve
Packging branding and
Materials 1 500000 500000 packaging

10. Marketing and Sales

Current product wise marketing plan and future product wise marketing plan (Describe in Max
300 word and fill the table) (More rows can be added).

# Product Marketing Channel Target Location Allocated Budget Responsible person

Milk Local cable, broachers Skardu city 15000 Syed Tahir

Yogurt Local cable, broachers Skardu city 10000 Syed Tahir
Butter Local cable, broachers Skardu city 3000 Syed Tahir
Other Local cable, broachers Skardu city 4000 Syed Tahir
Dairy
product

Quality dairy products create a market for us. We emphasize on quality, in result the number of
customer increase day to day. People come from far away to purchase the dairy products of our
farm.

These are marketing and promotion strategies of our enterprise

1) Original Marketing: We use the sign boards, cable networks for marketing.

2) Appeal to the Organic Market: People demand for the organic products. Our strategy is to
focus on organic dairy products.

3) Branding and Packaging: We use the branding and packaging with the name of Pak Deosai
dairy farm.

4) Convenience: Use the standard packaging material which is suitability for use to target
market and targeted product design.

5) Health Consciousness: Focus on the pure and hygienic dairy products.

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 6) Wider Spread: Spread the dairy business at large scale.

7) Focused Approach: Our approach is product specific.

11. Pricing Plan

Describe the pricing plans (one-time service fees, hourly-based fees, mark-ups, and any other
fees) and any impact on cash flows. (Describe in Max 100 words) (More rows can be added).

Sr. # Products/ Annual Sales Volume/ Number of Average Sales Prices per Total Annual Sales
Services Units* Unit (Rs.)
(A) (B) C = A *B
1. Milk 53,131 100 5,313,078

2. Yogurt 9,376 120 1,125,122

3. Butter 560 1200 672,000

Other Dairy Products

4.Wheat
Straw (Bosa) 3,580 400 1,432,000
5. Choker 1,790 380 680,200
6. Wandah 1,074 2,100 2,255,400
7. Khal 1,074 2,500 2,685,000
* Present volume for existing business and Expected for startups

12. Management and Employees

Write 250 words about your team members?

(Max 250 words)

 Number of total current employees and future employees

 Experience of the management and strong capabilities in business expansion

Name of employee Qualification Relevant experience

Syed Tahir DAE Above 10 years
Muhammad Abbas MBA Above 5 years
Syed Mubarak Matric Above 5 years
Syed Yousaf Shah Matric Above 5 years
Muhammad Yaqoob Matric Above 5 years

 Segregation of the employees is shown so that the Investor has a fair idea of existing
personnel mix and can review cost optimization, or whatever strategy they plan to execute.
 An employee profile can be shown in several ways, including by Function, Qualifications,
Geography, Pyramid, etc. (hierarchy chats)
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 General
Top Managment (CEO)
Manager

Manager
Middle level Managment
Finance

Sales Marketing Farm

Lower Management
Officer Officer Labour

Existing & future salary breakup of the key staff is as follows: (More rows can be added).

# Designation Monthly average salary amounts in Rupees

Forecast Forecast Forecast Forecast Forecast
2019(Actual)*
2020 2021 2022 2023 2024
1. General
Manager:
15,000 15,750 16,538 17,364 18,233 19,145
2. Sale
officers:
12,000 12,600 13,230 13,892 14,586 15,315
3. Labour
10000 10,500 11,025 11,576 12,155 12,763
4. Accounts
and
Admin
Assistant
12000 12,600 13,230 13,892 14,586 14,878
5.
6.
7.
8.
9.
10.Others
*If you are a startup then ignore 2019

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 13. Key Risks and Assumptions (Max 500 words)
What risk your business face? Think about complete supply chain till the consumption/use of
your product / service

9.1 Key risks and Challenges (More rows can be added).

Sr. # Key risks and challenges Plans to address the challenge

1. Cost of fodder and feeds increasing day by
day. We are planning to install the wheat
straw packaging machine and purchase the
Cost of Fodder & Feed wheat straw in the Month of July-August on
low cost. We can save huge amount due to
low cost as compare to wheat straw came
from down cities.
2. In the winter season we are facing the
shortage of fodder. We are planning to
Shortage of Fodder purchase the huge quantity of wheat straw,
silage in the summer season which
ultimately save the huge amount.
3. Milks are spoil in the season of summer and
facing the large amount of losses. To
overcome the spoilage of milk we are
planning to install the batch processing
Spoilage of Milk machine and generator. The batch
processing machine will process 1000 kg per
day which convert the milk into cheese,
butter and yogurt. It will increase the shelf
life of dairy products.
4. Livestock animals facing the different kind of
diseases round the year. We are planning to
Animal Diseases hire the Veterinary doctor for our firm.
He/she will responsible for vaccination and
animal caring.
5. Marketing and financial challenges
Marketing and Financial associated with every business. Our firm
have educated and experienced staffs. Risks
overcome through spread sales over time,
arrange alternate outlet, seek better
opportunities, maintain farm and outlet
assets, maintain cash reserve, develop
relationship with cooperatives etc.

9.2 Key Assumptions

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Revenue Assumptions: (Max 200 words)

Key assumptions used for developing the financial model for 5 years are as follows: (Year on
Year Growth in %). Write the rational below the table which must indicates why you expect this
growth or decrease in revenue in coming years

(More rows can be added).

Forecast Forecast Forecast Forecast Forecast

Unit 2019(Actual)*
2020 2021 2022 2023 2024
Revenue assumptions
Product / Service 1
Product / Service 2
Product / Service 3
Product / Service 4
Product / Service 5

*If you are a startup then ignore 2019

Expense Assumptions: (Max 200 words)

Following rates of inflation has been used for the expenses (Year on Year Growth in %). Write
the rational below the table which must indicates why you expect this growth or decrease in
revenue in coming years

(More rows can be added).

Amounts in Rupees Forecast Forecast Forecast Forecast Forecast

2019(Actual)*
2020 2021 2022 2023 2024
Salaries
Rent
Utilities
Travel, transportation and
communication
Depreciation & amortization
Marketing & Selling
Expenses
Other Operating Expenses

*If you are a startup then ignore 2019

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14. Financial Position and Future Projections
Year ended
2019(Actual) Forecast Forecast Forecast Forecast Forecast
Unit
* 2020 2021 2022 2023 2024
Total Revenue PKR
Total Expenses PKR
Net Profit PKR
Total Assets PKR
Total Liabilities PKR
Total Equity PKR
EBITDA PKR
Net profit margin %
Return on equity %
*If you are a startup then ignore 2019

14.1. Profit and Loss Statement – Current and Projected

Year ended
Amounts in Rupees Note Forecast Forecast Forecast Forecast Forecast
2019(Actual)***
2020 2021 2022 2023 2024
Revenue
Product/Service 1
Product/Service 2
Product/Service 3
Product/Service 4

Total Revenue
Direct costs
Gross Profit
Operating Expenses
Salaries
Rent
Utilities
Travel, transportation &
communication
Marketing & Selling
Expenses
Repair and maintenance
Auditor and legal fees
Other Operating expense
Total Operating Expenses
EBITDA*
Depreciation Expense
EBIT**
Finance cost / Interest
Net Income – Earning
before Tax
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 Year ended
Amounts in Rupees Note Forecast Forecast Forecast Forecast Forecast
2019(Actual)***
2020 2021 2022 2023 2024
Tax
Profit after tax
* Earning Before Interest Depreciation Tax and Amortization
** Earning Before Interest and Tax
*** If you are a startup then ignore 2019
Guidance: Above is sample format. You can amend, as per the business actual figures

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Notes on Income statement

Revenue: (Max 150 words)

______________________________________________________________________________
______________________________________________________________________________

Direct Cost: (Max 150 words)

______________________________________________________________________________
______________________________________________________________________________

Operating Expense: (Max 150 words)

______________________________________________________________________________
______________________________________________________________________________

14.2. Balance Sheet - Projected

Year ended
Amounts in Rupees Note Forecast Forecast Forecast Forecast Forecast
2019(Actual)*
2020 2021 2022 2023 2024
Non-Current Assets
Property plan and equipment

Total Non-Current Assets

Current Assets
Cash
Account Receivable
Inventory / stocks
Prepaid Rent
Total Current Assets
Total Assets

Current Liabilities
Interest Payable
Accounts Payable
Total Current Liabilities

Non-Current Liabilities
Loans
Total Non-Current Liabilities

Equity
Share Capital
Reserves
Total Equity
Total Liabilities & Equity
*If you are a startup then ignore 2019

Guidance: Above is sample format. You can amend, as per the business actual figures

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Notes on balance sheet:

Fixed Assets: (Max 150 words)

______________________________________________________________________________
______________________________________________________________________________

Current Assets: (Max 150 words)

______________________________________________________________________________
______________________________________________________________________________

Current Liabilities: (Max 150 words)

______________________________________________________________________________
______________________________________________________________________________

Long Term Debts: (Max 150 words)

______________________________________________________________________________
______________________________________________________________________________

Equity: (Max 150 words)

______________________________________________________________________________
______________________________________________________________________________

14.3. Cash flow Statement - Projected

Year Ended
Foreca
Not 2019(Actu Forecast Forecast Forecast Forecast
st
e al)* 2020 2021 2022 2023
Amounts in Rupees 2024
Net Income
Add: Depreciation

Changes in Working Capital

Add: Increase in Liabilities
Less: Increase in Assets
Net cash flows from
operations

Less: Capex
Add: Interest on loans
Cash flows after investing
activities
Less: Loan repayments
Less: Interest paid on loans
Cash flows after financing
activities
Dividends
Changes in Equity
Net Cash Flow

19
 Beginning Cash in Bank
Ending Cash in Bank
*If you are a startup then ignore 2019

Guidance: Above is sample format. You can amend, as per the business actual figures

Notes on Cash Flow:

Operating Cash Flow: (Max 150 words)

______________________________________________________________________________
______________________________________________________________________________

Investing Cash Flow: (Max 150 words)

______________________________________________________________________________
______________________________________________________________________________

Financing Cash Flow: (Max 150 words)

______________________________________________________________________________
______________________________________________________________________________

20