Statement of Financial Position as at June 30, 2020/2019

2020 2019
Rupees in '000
ASSETS

Non-Current Assets
Property, Plant and Equipment 16,501,642 13,804,509
Intangible Assets 72,550 93,524
Long-term loans and advances 12,639 15,906
Long-term deposits 10,020 11,129
Deferred taxation-net 64,491 0
16,661,342 13,925,068
Current Assets
Stores and spares 478,455 544,005
Stock-in-trade 15,932,791 13,560,393
Trade debts-unsecured 1,141,711 2,547,915
Loans and advances 2,990,543 3,728,026
Short-term prepayments 27,272 31,946
Accrued Return 111,128 34,846
Other receivables 438,655 3,109,549
Taxation-net 130,725 617,068
Short-term investments 41,194,878 23,402,464
Cash and bank balances 1,171,064 3,281,782
63,617,222 50,857,994

TOTAL ASSETS 80,278,564 64,783,062

EQUITY

Share Capital
Authorised Capital 500,000,000 (2019: 500,000,000) ordinary shares of Rs
10 each 5,000,000 5,000,000

Issued, subscribed and paid-up capital 786,000 786,000

Reserves 40,383,391 39,259,309
41,169,391 40,045,309
LIABILITIES

Non-Current Liabilities
Long term loan 479,326 80,540
Deferred Revenue 3,799 53,690
Deferred Taxation-net 0 424,690
483,125 558,920
Current Liabilities
Current portion of deferred revenue 28,420 3,300
Current portion of long term loan 113,425 0
Unclaimed dividends 357,066 295,597
Trade payables, other payables and provisions 13,593,480 15,950,203
Advances from customers and dealers 24,533,657 7,929,733
38,626,048 24,178,833

TOTAL EQUITY AND LIABILITIES 80,278,564 64,783,062

Statement of Profit or Loss for the year ended June 30, 2020/2019

2020 2019
Rupees in '000

Revenue from contracts with customers 86,167,016 157,996,212

Cost of sales (includes depreciation of Rs. 2,687,413,000) -78,716,157 -138,804,538
Gross Profit 7,450,859 19,191,674

Distribution expenses (includes depreciation of Rs. 42,413,000 in 2020) -1,468,862 -1,403,611

Administrative expenses (includes depreciation of Rs. 73,799,000 in 2020) -1,385,099 -1,410,033
Other operating expenses -196,740 -234,977
-3,050,701 -3,048,621
4,400,158 16,143,053
Workers' Profit Participation Fund and Workers' Welfare Fund -231,934 -1,406,379
4,168,224 14,736,674
Other income 3,204,872 4,306,662
7,373,096 19,043,336
Finance cost -85,737 -67,407
Profit before taxation 7,287,359 18,975,929
Taxation -2,205,332 -5,260,954
Profit after taxation 5,082,027 13,714,975
Years 0
Years 2020

Sales Growth
Sales 86,167,016
Variable Costs -76,028,744
Fixed Costs -3,166,423
Depreciation -2,803,625
Other Income 3,204,872
EBIT 7,373,096
Interest Expense -85,737
Profit after Interest 7,287,359
Taxes (rate applicable for forecasted years 35%) -2,205,332
Net Income 5,082,027

Operating cash flow 7,885,652

Working Capital
Initial Working Capital -24,991,174
Forecasted Working Capital
Change in Working Capital
NWC recovered
Total Change in Net Working Capital -24,991,174

Capital Spending
Initial Spending -2,697,133
Salvage value
Capital Spending -2,697,133

Total Projected Cash Flow -19,802,655

Discounted Cash Flow -19,802,655
Cumulated Cash Flows (Discounted)

1) Npv

Total Pv $48,286,298.46
Initial outlay -19,802,655
NPV $28,483,643.46

2) IRR

IRR 29%

3) Payback Period
Year Cash Flows
0 -19,802,655
1 6,555,994
2 6,699,442
3 6,905,996
4 7,180,324
5 42,995,366

Payback Period 2.950

4) Discounted Payback Period

Year Dis CF's
0 -19,802,655
1 $5,959,994.87
2 $5,536,729.16
3 $5,188,576.94
4 $4,904,257.78
5 $26,696,739.70

Discounted Payback 3.636

5) ARR

ARR 180.13%

6) Profitability Index
PI 17.9028243903668

for sensitivity analysis use the following slides

 Assignment #2

1 2 3 4
2021 2022 2023 2024

5% 6% 7% 8%
90,475,367 95,903,889 102,617,161 110,826,534
-79,830,181 -84,619,992 -90,543,392 -97,786,863
-3,324,744 -3,524,229 -3,770,925 -4,072,599
-2,624,161 -2,781,611 -2,976,324 -3,214,430
3,365,116 3,567,023 3,816,714 4,122,051
8,061,396 8,545,079 9,143,235 9,874,694
-90,024 -95,425 -102,105 -110,273
7,971,372 8,449,654 9,041,130 9,764,420
-2,789,980 -2,957,379 -3,164,395 -3,417,547
5,181,392 5,492,275 5,876,734 6,346,873

7,805,553 8,273,886 8,853,058 9,561,303

-26,240,733 -27,815,177 -29,762,239 -32,143,218

-1,249,559 -1,574,444 -1,947,062 -2,380,979

-1,249,559 -1,574,444 -1,947,062 -2,380,979

6,555,994 6,699,442 6,905,996 7,180,324

$5,959,994.87 $5,536,729.16 $5,188,576.94 $4,904,257.78
$5,959,994.87 $11,496,724.03 $16,685,300.97 $21,589,558.75
Accumlated CF
-19,802,655
-13,246,661
-6,547,218
358,778
7,539,101
50,534,468

Acc CF
-19802655
($13,842,660.13)
($8,305,930.97)
($3,117,354.03)
$1,786,903.75
$28,483,643.46
for scenario Analysis
 5
2025

8% Rate of Return 10%

119,692,657 Rate of Depreciation 15%
-105,609,812
-4,398,407
-3,471,584 Fixed Asset Growth
4,451,815
10,664,669 Fixed Assets
-119,095
10,545,574 Depreciation
-3,690,951
6,854,623

10,326,207

-34,714,676
-2,571,457
34,714,676
32,143,218

525,941
525,941

42,995,366
$26,696,739.70
$48,286,298.46
 2020 2021 2022 2023 2024 2025
5% 6% 7% 8% 8%

16,661,342 17,494,409 18,544,074 19,842,159 21,429,532 23,143,894

-2,803,625 -2624161 -2781611 -2976324 -3214430 -3471584

Input Variables Base-Case Deviation (20%)
Sales 86,167,016 103400419.2
Variable Costs 76,028,744 91234492.8
Required Rate of Return 10% 12%
Fixed Cost 3166423 3799707.6
Fixed Assets 16,661,342 19993610.4
 Deviation from Base
-20%
0
20%

Range

Deviation (-20%)
68,933,613
60822995.2
8%
2533138.4
13329073.6 Sensiti
$120,000,000.00

$100,000,000.00

$80,000,000.00

$60,000,000.00
NPV in rs '000

$40,000,000.00

$20,000,000.00

$0.00
-20%

($20,000,000.00)

($40,000,000.00)

($60,000,000.00)

% Deviation from
 Assignment #2
Sales Variable Costs Required Rate of Return Fixed Cost
($39,270,785.39) $88,266,195.58 $32,033,280.48 $30,973,449.79
$28,483,643.46 $28,483,643.46 $28,483,643.46 $28,483,643.46
$96,238,072.30 ($31,298,908.67) $25,267,168.32 $25,993,837.13

$135,508,857.69 $119,565,104.25 $57,300,448.81 $56,967,286.91

Sensiti vity Analysis

Sales
Variable Costs
Required Rate of Return
Fixed Cost
Fixed Assets

0% 20%

% Deviation from base

 Fixed Assets
$27,694,625.24
$28,483,643.46
$29,272,661.67

$56,967,286.91

es
iable Costs
quired Rate of Return
ed Cost
ed Assets