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Company Description:

Botanic Vogue is the brainchild of the team of co-founders of Botanic Vogue. All the
co-founders shared the vision of transforming the floriculture industry of Pakistan by
introducing the concept of delivery of value added products and services.
On one fine night in the middle of November all five co-founders; Ammar Hassan,
Syed Onib Nasir, Muhammad Nauman Manzoor, Faheem Mukhtar and Ali Tariq Butt
were sitting in a lawn and started discussing the possibility of developing an
enterprise that will give people an option to personalize their gardens and open
spaces according to their personality and mood. The discussion ensued for few
hours and the team discussed everything ranging from target market to
competitors.
The co-founders decided that they wanted to deliver value added gardening and
landscaping services to all those people who have a passion for gardening and the
competitive landscape in which Botanic Vogue will operate will be comprised of
landscaping artists. The distinguishing value that Botanic Vogue will deliver to its
customers will be the personification of its customers desire for an aesthetic garden
space and the reason why only Botanic Vogue can deliver this is because of its
teams ability to physically display imaginations through gardening and
landscaping.
At the end of the discussion the founding members agreed on the following unique
selling proposition for the then and there created envisioned brand Botanic Vogue:
Among people with a passion for gardening, Botanic Vogue is the brand of
landscape artists that personifies its customers desire for an aesthetic living space
because botanic Vogue can give life to imagination
This USP became the guiding source for all marketing and operational strategy to
build the brand equity of Botanic Vogue.
Financial Projections:

Investment Appraisal:
Investment Required

PKR 42 Million

Project Horizon

5 Years

Investors Required Rate of Return

40%

Net Present Value of Investment

PKR 14.8 Million

Internal Rate of Return

Project to return Positive NPV

Projected Profitability:

Net Profit (Loss)

Operating Profit
PKR 47,428,004

PKR 37,057,927

PKR 30,341,371
PKR 23,179,213

PKR 19,598,991
PKR 5,614,468
PKR 11,465,780
PKR 1,474,896

Operating Profit
Net Profit (Loss)

PKR 2,059,633
-PKR
1,392,202 2016
2015

2017

2018

2019

Projected Cash-flow:

Cash Flow Projections


100,000,000

89,501,282

80,000,000

71,568,610
71,568,610

60,000,000
50,305,600
50,305,600
50,305,600

50,628,051
50,628,051
40,965,146
40,965,146
40,783,342
40,783,342

40,000,000
20,000,000
(20,000,000)

181,805
2015
-

2016

(9,522,258)

20,940,558
17,932,672
9,662,905

2017

2018

2019

2020

Net Increase (Decrease) in cash


Beginning Balance, cash
Ending Balance, cash
Background Working:
The finance team of Botanic Vogue developed a comprehensive Sales and Cost
Model to project the financial statements for the next five years of operations.

Sales Model:
In order to estimate the projected sales for the first year of operations, number of
houses in Defence Housing Authority and Model Town were estimated with the help
of real estate agents. These areas were particularly selected because people living
in these areas matched the socio economic class of target customers. The number
of houses came out to be 45, 000, and it was assumed that Botanic Vogue would be
able to capture 10% of this universe of population.
Following are the sales estimates for the first year:

Landscaping
and

Gardening:
Defence
House Sizes:

Weight

Frequency

10 Marla

0.50

4,500

1 Kanal & above

0.50

4,500

0.35

4,725

0.65

8,775

0.60

13,500

0.40

9,000

Model Town
10 Marla
1 Kanal And
above

Others:
10 Marla
1 Kanal and
Above

Total
10 Marla
1 Kanal and
Above

Revenues:

22,725
22,275

Per Square Feet

Package A
Package B

Total
Revenue

200
300

PKR

Floral Passions
Growth Rate

5%

116,280,000

No. of Articles Sold in first


year

990

Average Price per Article

2,500

Revenue

2,475,000

Total Sales Revenue


(Year 1)

118,755,00
0

The revenues for first year were projected for the next five years using the
conservative growth rate of 5%.
For detailed pro-forma financial Statements please refer to Exhibit D.

Income
Statement:
Inflation Rate
Year
Sales Revenue
Lawn Dcor
Floral Passions
Catering
Cost of Sales
Gross Margin
Operating Expenses
Administrative Expenses
Depreciation Expenses
Amortization Expense
Marketing and Selling Expenses
Earnings before interest and
tax
Interest Expense
Earnings before tax
Tax Rate
Tax Expense
Profit (Loss) After Tax

Exhibit D:

12%

7%

6%

6%

6%

2016
118,755,0
00
116,280,0
00
2,475,000
(81,245,3
04)
37,509,69
6
(35,751,3
00)
(10,103,1
00)
(1,857,20
0)
(40,000)
(23,751,0
00)

2017
141,566,2
80
136,745,2
80
2,910,600
1,910,400
(91,277,9
00)
50,288,38
0
(41,525,9
28)
(11,315,4
72)
(1,857,20
0)
(40,000)
(28,313,2
56)

1,758,396
(2,853,94
1)
(1,095,54
5)
35%

8,762,452
(2,434,57
7)

2018
159,254,1
28
153,633,3
22
3,270,059
2,350,747
(97,746,7
84)
61,507,34
5
(37,892,8
74)
(12,107,5
55)
(1,857,20
0)
(40,000)
(23,888,1
19)
23,614,47
0
(1,950,33
8)
21,664,13
3
35%
(7,582,44
6)
14,081,6
86

2019
177,499,0
24
170,993,8
87
3,639,576
2,865,561
(103,703,5
79)
73,795,44
5
(32,481,11
1)
(12,834,00
8)
(1,857,200
)
(40,000)
(17,749,90
2)
41,314,33
5
(1,391,186
)
39,923,14
8
35%
(13,973,10
2)
25,950,04
6

2020
197,189,5
30
190,316,1
97
3,380,215
3,493,119
(110,029,5
32)
87,159,99
8
(35,220,20
2)
(13,604,04
9)
(1,857,200
)
(40,000)
(19,718,95
3)
51,939,79
6

(1,095,5
45)

6,327,874
35%
(2,214,75
6)
4,113,11
8

(745,534)
51,194,26
2
35%
(17,917,99
2)
33,276,27
0

Balance
Sheet:
Year
Non-Current Assets

2
2017
2,177,60
0
3,600,00
0
320,000
280,000
80,000

3
2018
1,905,40
0
2,400,00
0
280,000
245,000
70,000

1
2016
2,449,80
0
4,800,00
0
360,000
315,000
90,000
1,000,00
0

800,000

Total

9,572,0
00

8,014,8
00

Intangible Assets
Application Software

400,000

Building
Vehicles
Tractor
Tube well
Maintenance Equipment
Fixtures and FittingsCatering

0
2015
2,722,00
0
6,000,00
0
400,000
350,000
100,000

4
2019

1,633,200 1,3
1,200,000
240,000
210,000
60,000

20
17
50

600,000

400,000

20

6,457,6
00

4,900,4
00

3,343,20
0

1,7

360,000

320,000

280,000

240,000

20

Total

51,522,1
00
51,522,
100

9,027,25
6
54,000
8,973,25
6
42,296,4
99
51,323,
755

10,119,7
67
60,480
10,059,2
87
159,200
44,544,2
86
54,823,
253

10,838,5
32
64,714
10,773,8
18
195,896
56,837,5
28
67,871,
955

11,500,39 12,
8
68,596
72
11,431,80 12,
1
238,797
29
80,565,58 111
3
92,304,7 12
78

61,494,
100

59,698,
555

61,600,
853

73,052,
355

95,887,9
78

12

Total Assets

2,710,8
20

3,130,1
84

3,614,4
24

4,173,57
5

4,8

18,448,2
30

15,737,4
10

12,607,2
26

8,992,80
2

4,819,227

Current Assets
Inventory
Raw Material
Finished Goods
Receivables
Cash at Bank

Current Liabilities
Loan payment due
Non-Current Liabilities
Loan @ 15.47%

Retained Earnings

43,045,8
70
(1,095,5
45)

Total Liabilities and


Equity

61,494,
100

59,698,
555

Owners Equity

43,045,8
70

43,045,8
70
3,017,57
3

43,045,8
70
17,099,2
59

43,045,87 43,
0
43,049,30 76,
6

61,600,
853

73,052,
355

95,887,9
78

12