Financial Analysis Assignment Latest

Estimated Cost of the Project
Annexure: 01
(Rupees in Millions)
Sr.
No.
1
Foreign
Cost
Items
Land
Development & Legal Charges
Total Land
Collection of Buildings
Architect Fee
Contingency Provision (12%)
Total Buildings Collection
Plant & Machinery
Foreign Machinery (CIF Cost Karachi to Lahore)
Incidentals on Foreign Machinery
Local Machinery
Incidentals on Local Machinery
Contingency Provision (12%)
Installed Cost of Machinery
Furniture & Fixtures
Vehicles
Pre-Operating Expenses
Total Cost of Fixed Assets
Total
Cost
---------------
75.000
20.000
95.000
79.500
2.385
9.826
91.711
75.000
20.000
95.000
79.500
2.385
9.826
91.711
100.000
------12.000
112.000
--------112.000
--25.000
75.000
7.500
12.900
120.400
5.000
10.000
20.000
35.000
342.111
123.0233
100.000
25.000
75.000
7.500
24.900
232.400
5.000
10.000
20.000
35.000
454.111
Add: Gross Working Capital
---
Total Cost of the Project
Local
Cost
123.0233
112.000 465.1343 577.1343
Means of Financing the Project:

Loans:
Equity:
Long Term Loan:
317.8777
Bridge Finance:
76.3434
Short Term Loan:
41.1324
Sponsors Capital:
141.7808
359.0101
218.1242
577.1343
Financial Analysis Assignment
Page 1
Production & Sales Estimates

Annexure: 02
Years of Operations
Capacity Attained (%)
Production at Attained Capacity
Add: Opening Work in Process
Total Work in Process
Less: Closing Work in Process
Net Production
Add: Opening Finished Goods
Quantity Available for Sale
Less: Closing Finished Goods
Quantity Sold
Sales Revenue:*
(Selling Price x Quantity Sold)
1st Year
65%
1.950
--1.950
0.0325
1.9175
--1.9175
0.1597
1.7578
369.138
2nd Year 3rd Year 4th Year 5th Year

70%
2.100
0.0325
2.1325
0.035
2.0975
0.1597
2.2572
0.1747
2.0825
437.325
75%
2.250
0.035
2.285
0.0375
2.2475
0.1747
2.4222
0.1872
2.235
469.35
80%
2.400
0.0375
2.4375
0.04
2.3975
0.1872
2.5847
0.1997
2.385
550.935
85%
2.550
0.04
2.59
0.0425
2.5475
0.1997
2.7472
0.2122
2.535
585.585
*Note:
Selling Price for First three years in Rs 210 per unit, and after wards it increases by 10% so for
4th & 5th year it will be Rs 231 per unit.
Page 2
Cost of Goods Sold Statement

Annexure: 03
Particulars
Raw Materials
Wages & Salaries
Factory Overheads:
Cost of Electricity (fixed +
variable)
Stores, Spares & Consumables
Repairs & Maintenance
Cost of Insurance Premium
Depreciation / Amortization
Miscellaneous Expenses
Total FOH
Total Cost
Add: Opening Work in Process
Total Work in Process
Less: Ending Work in Process
Cost of Goods Manufactured
Add: Opening Finished Goods
Cost of Goods Available for Sale
Less: Ending Finished Goods
Cost of Goods Sold (CGS)
1st Year
2nd Year
3rd Year
4th Year 5th Year
195.00
10.00
210.00
11.00
247.50
12.10
264.00
13.310
280.50*
14.641
11.235
13.765
16.802
20.440
24.792
11.62
16.955
5.0866
35.5755
3.2188
83.6909
288.6909
--288.6909
4.8115
283.8794
--283.8794
23.6566
13.944
20.346
5.0866
35.5755
3.5486
92.2657
313.2657
4.8115
318.0772
5.2210
312.8562
23.6566
336.5128
26.9415
16.268
23.737
5.0866
35.5755
3.8987
101.3678
360.9678
5.2210
366.1888
6.0161
360.1727
26.9415
387.1142
30.0143
18.592
27.128
5.0866
35.5755
4.2728
111.0949
388.4049
6.0161
394.421
6.4734
387.9476
30.0143
417.9619
32.3289
20.916
30.519
5.0866
30.5755
4.4755
116.3646
411.5056
6.4734
417.979
6.8584
411.1206
32.3289
443.4495
34.260
260.2228 309.5713 357.0999 385.633 409.189
Page 3
Forecast Income Statement

Annexure: 04
Particulars
Sales
Less: Cost of Goods Sold (CGS)
Gross Profit
Less: Selling & Admin. Expenses
Operating Profit
Less: Financial Expenses;
Interest on Long Term Loan
Interest on Short Term Loan
Interest on Bridge Finance
Total Financial Expenses
Profit After Charging financial
expenses
Less: Worker Participation Fund
Pre-Taxation Profit
Less: Income Tax
Profit After Tax
(Apportionment of Profit)
Dividend Payable
Retained Earnings
1st Year
369.138
437.325
469.350
260.2228 309.5713 357.0999
108.9152 127.7537 112.2501
11.0741
13.1197
14.0805
97.8411
114.634
98.1696
550.935
385.633
165.302
16.5280
148.774
585.585
409.189
176.396
17.5675
158.8285
72.476
4.5245
9.9246
86.9251
26.7017
5.2995
9.9246
41.9258
19.0726
5.9478
9.9246
34.945
11.4436
6.3961
--17.8397
3.8145
6.8074
--10.6219
10.916
72.7082
63.2246
130.9343
148.2066
0.5458
10.3702
2.5925
7.7777
3.6354
69.0728
17.2682
51.81
3.1612
60.0634
15.0158
45.0476
6.5467
124.3876
31.0969
93.2907
7.4103
140.7963
35.1990
105.5973
--7.7777
--51.810
--45.0476
76.3434
16.9473
76.3434
29.2539
Page 4
Working Capital Estimates

Annexure: 05
Particulars
Tied-Up
Period
1st
Year
2nd
Year
3rd
Year
4th
Year
5th
Year
Current Assets:
Raw Material
Consumed
Work in Process
Finished Goods
Stores & Spares
Account Receivables
Initial Cash
Gross Working Capital
Less: Current Liabilities;
45 Days
5 Days
25 Days
2 Months
60 Days
2 Months
29.25
31.5
37.125
39.6
42.075
4.8115
23.6566
1.9366
61.523
1.8456
5.3012
30.4129
2.324
72.8875
---
123.0233
142.4256
6.1031
32.2595
2.7113
78.225
--156.4239
6.5736
34.8301
3.0986
91.8225
--175.9248
6.9663
36.9541
3.486
97.5975
--187.0789
41.1324
48.1776
54.0718
58.1465
61.8863
81.8909
94.248
75% of
Bank Loan (Short Term) Marketable
Inventories
Net Working Capital
102.3521 117.7783 125.1926
Page 5
Cash Flow Statement

Particulars
Sources of Cash:
Operating Profit
Add: Non-Cash Expenses
Cash from Operations
Increase in current liabilities
Increase in long-term
liabilities
Increase in Paid-up capital
Increase in redeemable
capital
Decrease in current Assets
Decrease in fixed Assets
Total Sources
Less: Application of Cash:
Increase in fixed Assets
Increase in Current Assets
Decrease in current liabilities
Decrease in long-term
liabilities
Decrease in redeemable
capital
Financial Expenses
Workers Participation Fund
Income Tax
Dividend
Total Application of Cash
Surplus / Deficit
Cash Opening Balance
Cash Closing Balance
Contractua
l Year
1st Year
---------
97.8411
35.5755
133.4166
41.1324
114.634
35.5755
150.2095
7.0452
98.1696
35.5755
133.7451
5.8942
148.774
35.5755
184.3495
4.0747
158.8285
30.5755
189.404
3.7398
317.8777
---
---
---
---
---
141.7808
---
---
---
76.3434
---
76.3434
---
---
---
---
---
----536.0019
----174.549
----157.2547
----139.6393
----264.7676
----193.1438
454.111
-----
--121.1777
---
--21.2479
---
--13.9983
---
--19.5009
---
--11.1541
---
---
63.5755
63.5755
63.5755
63.5755
63.5755
---
---
---
---
76.3434
---
--------454.111
81.8909
--81.8909
86.9251
0.5458
2.5925
--274.8166
41.9258
3.6354
17.2682
--147.6528
(100.2676)
9.6019
81.8909 (18.3767)
(18.3767) (8.7748)
34.945
17.8397
10.6219
3.1612
6.5467
7.4103
15.0158
31.0969
35.1990
--76.3434
76.3434
130.6958 291.2465 204.3042
8.9435 (26.4789) (11.1604)
(8.7748)
0.1687 (26.3102)
0.1687 (26.3102) (37.4706)
Page 6
Balance Sheet
Particulars
Contractual
Assets:
Current Assets;
Cash & Bank balance
Account Receivable
Inventories
Total Current Assets
Non Current Assets;
Property Plant & Equipment
Less: Accumulated Depreciation
Total Assets
Liabilities & Equities:
Current Liabilities;
Short term loan
Account payable
Dividend Payable
Total Current Liabilities
Non-Current Liabilities;
Bank loan
Redeemable capital
Total non-current liabilities
Equity;
Paid-up capital
Retained Earnings
Total Liabilities & Equities
Year
1st Year
81.8909 (18.3767)
--61.523
--59.6547
81.8909
102.801
(8.7748)
72.8875
69.5381
133.6508
0.1687 (26.3102) (37.4706)

78.225
91.8225
97.5975
78.1989
84.1023
89.4814
156.5926 149.6146 149.6083
454.111
--536.0019
454.111
35.5755
521.3365
454.111
71.151
516.61
454.111
106.7265
503.97
454.111
142.302
461.4236
454.111
172.8775
430.848
---------
41.1324
----41.1324
48.1776
----48.1776
54.0718
----54.0718
58.1465
----58.1465
61.8863
----61.8863
317.8777
76.3434
394.2211
254.3022
76.3434
330.6456
190.7267
76.3434
267.0701
127.1512
76.3434
203.4946
63.5755
--63.5755
-------
141.7808
--536.0019
141.7808
7.7777
521.3365
141.7808
59.5877
516.616
141.7808
104.6353
503.98
218.1242
121.5826
461.428
218.1242
150.8365
430.847
Page 7
Break Even Analysis

(Annexure No: 07)
Particulars
Raw Material
Wages & Salaries
Electricity
Stores & spares
Repairs & Maintenance
Insurance Premium
Depreciation /
Amortization
Misc. Expenses
Selling & Admin.
Expenses
Financial Expenses
Total Cost
Sales
Breakeven Sales
Breakeven Capacity
Margin of Safety
1st Year
Fix
Cost
2nd Year
Variable
3rd Year
4th Year
5th Year
Fix
Cost
Variable
Fix
Cost
Variable
Fix
Cost
Variable
Fix
Cost
Variable
--3.00
1.680
--4.835
5.086
195.00
7.00
9.555
11.62
12.12
---
--3.3
1.932
--5.803
5.086
210.00
7.7
11.8335
13.944
14.543
---
--3.63
2.221
--6.769
5.086
247.50
8.47
14.5687
16.268
16.968
---
--3.993
2.553
--7.737
5.086
264.00
9.317
17.8752
18.592
19.391
---
--4.392
2.94
--8.704
5.086
280.50
10.248
21.8412
20.916
21.815
---
35.575
---
35.575
---
35.575
---
35.575
---
30.575
---
0.965
2.253
1.064
2.484
1.169
2.729
1.282
2.991
1.342
3.133
3.322
7.7518
3.936
9.1837
4.224
9.8563
4.958
11.5696
5.270
12.2972
86.925
---
41.925
---
34.945
---
17.839
---
10.621
141.38
245.299
369.138
421.526
74%
(9%)
98.62
269.688
437.325
257.291
41%
29%
93.61
316.36
469.350
296.349
46%
29%
79.02
343.735
550.935
210.103
30%
50%
68.93
--370.750
585.585
187.871
27%
58%
Pay Back Period = Investment / Profitability = 577.1343 / 60.704

= 10 years approximately
Average Profitability = Net Profits / No. of Years = 303.5226 / 5 = 60.704
Page 8

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Estimated Cost of the Project

Total Cost of Fixed Assets

Add: Gross Working Capital

Total Cost of the Project

112.000 465.1343 577.1343

Means of Financing the Project:

Long Term Loan:

Short Term Loan:

Production & Sales Estimates

2nd Year 3rd Year 4th Year 5th Year