AdvPack Technologies.

Historical Data and Forecasting Assumptions

(Thousand Rs) Actual
Year 0
Operations:
Unit Sales Growth 5.4%
Price Growth 2.0%
Growth Rate of Sales 7.5%

Cost of Sales (Excl. Dep. & Amort.) as % of Sales 81.8%

Selling, General & Administrative as % of Sales 7.4%
Research & Development as % of Sales 0.9%
EBITDA as % of Sales 9.8%
Growth Rate 8.5%

Capital Expenditures and Depreciation:

Capital Expenditures (net of Disposals) 16,100
Net Property, Plant & Equipment (PP&E) 80,414
% of Sales 39.50%
Book Depreciation 10,695
% of Net PP&E 13.3%
Tax Depreciation 11,740
% of Net PP&E 14.6%

Working Capital:
Cash balance as % of Sales 1.7%
Accounts Receivable as % of Sales 8.9%
Days Receivable 32
Inventories as % of Cost of Sales 15.1%
Inventory Days on hand 55
Other Current Assets as % of Sales 0.35%

Accounts Payable as % of Cost of Sales 10.6%

Days Payable 39
Accrued Expenses as % of Sales 1.15%
Tax Payable as % of Current Income Tax 0.37%
Other Current Liabilities as % of Sales 0.41%

Debt, Interest, Dividends and Taxes:

Short-term Debt & Curr. Portion of LTD as % of Total Debt 16.67%
Total Debt as a multiple of next year EBITDA 2.85
Interest rate on debt
Interest rate on cash and marketable securities
Dividends paid - 100% of ecess cash and marketable securities
Tax rate on income 38.25%

AdvPack Technologies. Pro-Forma Income Statements

(Thousand Rs) Actuals
Year 0
Sales 203,580
Cost of Sales 166,592
Gross Profit 36,988
Sales, General & Administrative Expenses 15,164
Research & Development 1,922
EBITDA 19,901
Depreciation 10,695
EBIT 9,206
Interest Expense
Interest Income
Pretax Income
Current Income Tax
Deferred Tax
Net Income

AdvPack Technologies. Pro-Forma Balance Sheets

(Thousand Rs) Actual
Year 0
Assets
Current:
Cash and Marketable Securities 3,417
Accounts Receivable 18,119
Inventories 25,158
Other Current Assets 717
Total Current Assets 47,411

Property, Plant & Equipment 117,667

Less: Depreciation 37,253
Net Property, Plant & Equipment 80,414

Other Noncurrent Assets: 9,352

Total Assets 137,177
Liabilities
Current:
Short-term Debt & Current Portion of LTD 13,632
Accounts Payable 17,659
Accrued Expenses 2,341
Taxes Payable 20
Other Current Liabilities 835
Total Current Liabilities 34,487
Long-term Debt 68,162
Deferred Income Taxes 1,209
Total Liabilities 103,859
Common Stock and Retained Earnings 33,319
Total Liabilities and Net Worth 137,177

AdvPack Technologies. Pro-Forma Cash Flow Statements

(Thousand Rs) Actuals
Year 0
Funds from Operating Activities
Net Income
Depreciation
Deferred Tax
Decrease (Increase) in Current Assets
Increase (Decrease) in Current Liabilities except debt
Decrease (Increase) in Net Working Capital
Funds From Operations

Funds for Investment

 Capital Expenditures

Funds to (from) Financing

Decrease (Increase) in Debt
Dividends
Total Funds to (from) Financing
Increase (Decrease) in Cash
End-of-Year Cash & Marketable Securities 3,417

Actual
Required cash balance ………………...…… 3,417
Excess cash ………………………………….. 0.000
Increase in Net Debt
Net debt
78,378
AdvPack Technologies. Historical Data and Forecasting Assumptions
(Thousand Rs) Actual Forecast for Fiscal Years Ending 31st Dec
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Operations:
Unit Sales Growth 5.4% 6.0% 6.0% 5.6% 5.6% 5.1%
Price Growth 2.0% 2.3% 2.3% 2.3% 2.3% 2.3%
Growth Rate of Sales 7.51% 8.44% 8.44% 8.03% 8.03% 7.52%

Cost of Sales (Excl. Dep. & Amort.) as % of Sales 81.8% 79.0% 77.5% 77.5% 77.5% 77.5%
Selling, General & Administrative as % of Sales 7.4% 7.0% 7.0% 7.5% 7.5% 7.5%
Research & Development as % of Sales 0.9% 1.0% 1.0% 1.0% 1.0% 1.0%
EBITDA as % of Sales 9.9% 13.0% 14.5% 14.0% 14.0% 14.0%
Growth Rate 8.5% 42.4% 21.0% 4.3% 8.0% 7.5%

Capital Expenditures and Depreciation:

Capital Expenditures (net of Disposals) 16,100 11,380 17,771 19,437 22,046 22,807
Net Property, Plant & Equipment (PP&E) 80,414 81,018 86,658 91,857 98,617 105,129
% of Sales 39.50% 36.70% 36.20% 35.52% 35.30% 35.00%
Book Depreciation 10,695 10,775 12,132 14,238 15,286 16,295
% of Net PP&E 13.3% 13.3% 14.0% 15.5% 15.5% 15.5%
Tax Depreciation 11,740 11,829 12,999 14,973 16,075 17,136
% of Net PP&E 14.6% 14.6% 15.0% 16.3% 16.3% 16.3%

Working Capital:
Cash balance as % of Sales 1.7% 1.6% 1.6% 1.6% 1.6% 1.6%
Accounts Receivable as % of Sales 8.9% 8.9% 8.9% 8.9% 8.9% 8.9%
Days Receivable 32 32 32 32 32 32
Inventories as % of Cost of Sales 15.1% 15.1% 15.1% 15.1% 15.1% 15.1%
Inventory Days on hand 55 55 55 55 55 55
Other Current Assets as % of Sales 0.35% 0.35% 0.35% 0.35% 0.35% 0.35%
Accounts Payable as % of Cost of Sales 10.6% 10.8% 10.8% 10.8% 10.8% 10.8%
Days Payable 39 39 39 39 39 39
Accrued Expenses as % of Sales 1.15% 1.15% 1.15% 1.15% 1.15% 1.15%
Tax Payable as % of Current Income Tax 0.37% 0.37% 0.37% 0.37% 0.37% 0.37%
Other Current Liabilities as % of Sales 0.41% 0.41% 0.41% 0.41% 0.41% 0.41%

Debt, Interest, Dividends and Taxes:

Short-term Debt & Curr. Portion of LTD as % of Total Debt 16.67% 16.67% 16.67% 16.67% 16.67% 16.67%
Total Debt as a multiple of next year EBITDA 2.85 2.49 2.56 2.52 2.56 2.38
Interest rate on debt (calculated on opening balance) 8.35% 8.35% 8.35% 8.35% 8.35%
Interest rate on cash and marketable securities(calculated on opening balance) 4.61% 4.61% 4.61% 4.61% 4.61%
Dividends paid 100% of excess cash and marketable securities
Tax rate on income 38.25% 38.25% 38.25% 38.25% 38.25% 38.25%
e securities