ZEAL PAK CEMENT FACTORY LTD.

Project Feasibility Study

COST OF PROJECT

The estimated cost of the project is as under:

Existing
Description
Land 6,580,000
Building 6,932,000
Plant / Machinery 285,350,000
Other Fixed Assets 14,111,000
Revaluation value of Land Building Plant & Machinery 1,038,836,000
Current & Other Assets 1,284,046,000
Total 2,635,855,000

Long Term Liabilities 32,036,000

Other Liabilities 779,125,000

Total 811,161,000

1,824,694,000
Addition
Description
Building & Civil Works 120,000,000
Plant & Machinery - Imported
Cost 942,101,040
Custom Duty & Other Costs 56,526,062
Erection & Installation 25,000,000
Fittings
Local Fabrication 38,000,000
Preliminary & Pre-Production Expenses 12,000,000
Contingencies 3,600,000
Working Capital Requirement 72,000,000
Total 1,269,227,102
Grand Total 3,093,921,102

MEANS OF FINANCING

Source
Existing Equity 1,824,694,000
Fresh Contribution 327,126,062
Total 2,151,820,062

Loan / Lease Financing 942,101,040

Grand Total 3,093,921,102
 FINANCIAL PROJECTIONS
COST OF PROJECT & FINANCING (EXPANSION)

PARTICULARS RUPEES

PROJECT COST
BUILDING & CIVIL WORKS 120,000,000

PLANT & MACHINERY

IMPORTED:
COST 942,101,040
CUSTOM DUTY 47,105,052
OTHERS 9,421,010
998,627,102
LOCAL -
998,627,102

ERECTION & INSTALLATION 25,000,000 1,023,627,102

LOCAL FABRICATION 38,000,000

FURNITURE & FIXTURE -

VEHICLES -

OTHER COSTS
PRELIMINARY & PRE-PRODUCTION EXPENSES 12,000,000
CONTINGENCIES 3,600,000
15,600,000
TOTAL CAPITAL COST 1,197,227,102
WORKING CAPITAL / INTEREST DURING CONSTRUCTION 72,000,000
TOTAL PROJECT COST 1,269,227,102

FINANCING OF PROJECT
EQUITY:
SPONSORS CONTRIBUTION 327,126,062

LOANS:
LOCAL CURRENCY LOAN 942,101,040
TOTAL PROJECT FINANCING 1,269,227,102
 ZEALPAK CEMENT (PRIVATE) LIMITED
KEY FINANCIAL RATIOS
Year 1 Year 2 Year 3 Year 4 Year 5
Current Ratio 7.55 4.13 3.32 3.82 5.79
Current Ratio (excluding current maturity) 7.55 8.74 4.67 5.26 5.79
Debt Equity Ratio 0.31 0.25 0.14 0.06 -
Earning Per Share 2.09 3.01 3.19 3.54 3.98
Return on Equity in % 20.89 30.12 31.89 35.42 39.78
GP Ratio 31.51 34.32 36.34 36.78 37.85
NP Ratio 16.64 20.46 18.26 19.29 20.62
Net Cash Generation 446,004,635 969,133,059 893,852,047 651,478,926 735,358,107

ZEALPAK CEMENT (PRIVATE) LIMITED

KEY FINANCIAL DATA
Year 1 Year 2 Year 3 Year 4 Year 5
CAPACITY UTILIZED 70% 80% 90% 90% 90%
SALES (NET) 2,303,319,375 2,788,080,750 3,320,530,073 3,513,666,265 3,716,459,265
COST OF SALES 1,577,478,862 1,831,222,019 2,113,940,697 2,221,320,222 2,309,784,793
NET PROFIT 423,429,387 610,610,928 646,408,988 718,065,831 806,410,936
TOTAL FIXED ASSETS 2,230,104,362 2,047,977,638 1,884,152,443 1,736,780,855 1,604,203,294
LONG TERM LOAN / SUPPLIER CREDIT 753,680,832 753,680,832 502,453,888 251,226,944 -
NET CASH GENERATION 446,004,635 969,133,059 893,852,047 651,478,926 735,358,107
 KEY FINANCIAL DATA

PROJECT BASED SCENARIO

PAYBACK PERIOD
Year Dep
Project Net profit Net cash Cumulative
and
Investment after tax flow cash flow
Amort

0 1,269,227,102 (1,269,227,102) (1,269,227,102)

1 423,429,387 356,563,940 779,993,327 (489,233,775)
2 610,610,928 336,204,224 946,815,152 457,581,377
3 646,408,988 166,945,194 813,354,182 1,270,935,560
4 718,065,831 150,491,589 868,557,419 2,139,492,979
5 806,410,936 135,697,561 942,108,497 3,081,601,476

1 + 489,233,775
946,815,152

PAY BACK PERIOD 1.5 Years

IRR 60.52%

NPV 1,847,481,800
 KEY FINANCIAL DATA

EQUITY INVESTMENT BASED SCENARIO

PAYBACK PERIOD
Year Dep
Equity Net profit Net cash Cumulative
and
Investment after tax flow cash flow
Amort

0 2,151,820,062 (2,151,820,062) (2,151,820,062)

1 423,429,387 356,563,940 779,993,327 (1,371,826,735)
2 610,610,928 336,204,224 946,815,152 (425,011,583)
3 646,408,988 166,945,194 813,354,182 388,342,600
4 718,065,831 150,491,589 868,557,419 1,256,900,019
5 806,410,936 135,697,561 942,108,497 2,199,008,516

2 + 425,011,583
PAY BACK PERIOD 2.5 Years 813,354,182

IRR 28.49%

NPV 964,888,840
 KEY FINANCIAL DATA

ASSETS BASED SCENARIO

PAYBACK PERIOD
Year Dep
Project Net profit Net cash Cumulative
and
Investment after tax flow cash flow
Amort

0 3,093,921,102 (3,093,921,102) (3,093,921,102)

1 423,429,387 356,563,940 779,993,327 (2,313,927,775)
2 610,610,928 336,204,224 946,815,152 (1,367,112,623)
3 646,408,988 166,945,194 813,354,182 (553,758,440)
4 718,065,831 150,491,589 868,557,419 314,798,979
5 806,410,936 135,697,561 942,108,497 1,256,907,476

3 + 553,758,440
868,557,419

PAY BACK PERIOD 3.6 Years

IRR 12.29%

NPV 22,787,800
 ZEALPAK CEMENT FACTORY LIMITED
PROJECTED BALANCE SHEET
EXPANSION
2005 As per audited
B/S 2006 Projected Year 1 Year 2 Year 3 Year 4 Year 5
ASSETS
NON-CURRENT ASSETS 1,351,809,000 1,250,963,700 2,230,104,362 2,047,977,638 1,884,152,443 1,736,780,855 1,604,203,294
CWIP 1,181,627,102
DEFFERED COST 452,872,000 317,515,000 163,437,500 9,360,000 6,240,000 3,120,000 -

LONG TERM DEPOSITS 1,277,000 1,024,000 1,024,000 1,024,000 1,024,000 1,024,000 1,024,000

CUREENT ASSETS
STORE & SPARES 184,069,000 191,579,015 199,395,439 207,530,773 215,998,028 224,810,748 233,983,027
STOCK IN TRADE 136,005,000 141,554,004 170,225,488 204,270,586 241,294,629 253,359,361 266,027,329
ACCOUNTS RECEIVABLES 327,521,000 340,883,857 406,286,773 364,825,939 325,702,750 266,993,439 208,757,501
ADVANCES & DEPOSITS 177,236,000 184,467,229 191,993,492 199,826,826 207,979,761 216,465,335 225,297,121
CASH & BANK BALANCES 5,066,000 990,801,766 1,884,653,812 2,536,132,739 3,271,490,846
829,897,000 858,484,105 967,901,192 1,967,255,890 2,875,628,981 3,497,761,622 4,205,555,823
2,635,855,000 3,609,613,907 3,362,467,054 4,025,617,527 4,767,045,424 5,238,686,476 5,810,783,117

EQUITY AND LIABILITIES

CAPITAL AND RESERVES
SHARE CAPITAL 1,700,000,000 2,027,126,062 2,027,126,062 2,027,126,062 2,027,126,062 2,027,126,062 2,027,126,062
CAPITAL RESERVE 10,904,000 10,904,000 10,904,000 10,904,000 10,904,000 10,904,000 10,904,000
SURPLUS ON REVALUATION OF FIXED
ASSETS 816,712,000 768,254,000 723,967,000 679,680,000 635,393,000 591,106,000 546,819,000
UN-APP. PROFIT/(LOSS) (702,922,000) (736,134,076) (312,704,689) 297,906,239 944,315,227 1,662,381,058 2,468,791,994
1,824,694,000 2,070,149,986 2,449,292,373 3,015,616,301 3,617,738,289 4,291,517,120 5,053,641,056

NON-CURRENT LIABILITIES
LONG TER LOAN / LEASE FINANCING 812,000 753,680,832 753,680,832 502,453,888 251,226,944 - -
OTHERS 31,224,000 31,224,000 31,224,000 31,224,000 31,224,000 31,224,000 31,224,000

CURRENT LIABILITIES
SHORT TERM FINANCING 474,803,000 424,335,928 (21,668,707)
CURRENT MATURITY / LEASE FINANCING 185,000 - - 251,226,944 251,226,944 251,226,944 -
ACCOUNTS PAYABLES 166,395,000 176,378,700 31,409,726 37,691,672 44,523,287 46,749,451 49,086,924
ACCRUED & OTHER LIABILITIES 137,742,000 146,006,520 102,499,267 129,214,295 157,770,499 168,633,718 181,178,170
TAXES PAYABLE 7,837,941 16,029,563 58,190,428 413,335,462 449,335,243 495,652,967
779,125,000 754,559,089 128,269,849 476,323,338 866,856,191 915,945,357 725,918,061

2,635,855,000 3,609,613,907 3,362,467,054 4,025,617,527 4,767,045,424 5,238,686,476 5,810,783,117

 ZEALPAK CEMENT FACTORY LIMITED
PROJECTED PROFIT & LOSS ACCOUNT

2005 2006 Projected Year 1 Year 2 Year 3 Year 4 Year 5

SALES 1,033,748,000 1,567,588,114 2,303,319,375 2,788,080,750 3,320,530,073 3,513,666,265 3,716,459,265

COST OF SALES 969,712,000 1,436,878,520 1,577,478,862 1,831,222,019 2,113,940,697 2,221,320,222 2,309,784,793
GROSS PROFIT/(LOSS) 64,036,000 130,709,594 725,840,513 956,858,731 1,206,589,377 1,292,346,042 1,406,674,472

GENERAL & ADMIN EXPENSES 14,622,000 14,914,440 11,981,278 14,058,723 16,333,840 17,258,971 18,230,357
SELLING EXPENSE 3,677,000 3,750,540 23,525,194 28,397,408 33,747,731 35,706,214 37,762,622
18,299,000 18,664,980 35,506,471 42,456,131 50,081,571 52,965,185 55,992,979

OPERATING PROFIT/(LOSS) 45,737,000 112,044,614 690,334,041 914,402,601 1,156,507,806 1,239,380,857 1,350,681,493

FINANCE COST 34,689,000 34,689,000 107,786,200 90,441,700 79,930,490 49,480,780 19,031,069

PROFIT AFTER FINANCE COST 11,048,000 77,355,614 582,547,842 823,960,901 1,076,577,316 1,189,900,078 1,331,650,424
OTHER INCOME & ADJUSTMENTS 7,725,000 8,111,250 - -
AMORTIZATION OF DEFERRED COST 150,957,000 150,957,000 154,077,500 154,077,500 3,120,000 3,120,000 3,120,000

OTHER CHARGES:
WPPF - - 29,127,392 41,198,045 53,828,866 59,495,004 66,582,521
WWF - - - - - - -
- - 29,127,392 41,198,045 53,828,866 59,495,004 66,582,521
PROFIT BEFORE TAX (132,184,000) (65,490,136) 399,342,950 628,685,356 1,019,628,450 1,127,285,074 1,261,947,903
INCOME TAX EXPENSES (112,607,000) 7,837,941 16,029,563 58,190,428 413,335,462 449,335,243 495,652,967
PROFIT AVAILABLE FOR APPROPRIATION (19,577,000) (73,328,076) 383,313,387 570,494,928 606,292,988 677,949,831 766,294,936
DIVIDEND/TRANS TO INCREMENTAL DEP 40,116,000 40,116,000 40,116,000 40,116,000 40,116,000 40,116,000 40,116,000
RETAINED PROFIT 20,539,000 (33,212,076) 423,429,387 610,610,928 646,408,988 718,065,831 806,410,936
UNAPPROPRIATED PROFIT B/F 723,461,000 702,922,000 (736,134,076) (312,704,689) 297,906,239 944,315,227 1,662,381,058
UNAPPROPRIATED PROFIT C/F (702,922,000) (736,134,076) (312,704,689) 297,906,239 944,315,227 1,662,381,058 2,468,791,994
 ZEALPAK CEMENT FACTORY LIMITED
PROJECTED CASH FLOW STATEMENT

CASH FLOW FROM OPERATING ACTIVITIES 2005 2006 Projected Year 1 Year 2 Year 3 Year 4 Year 5
Profit/(Loss) before taxation (132,184,000) (65,490,136) 399,342,950 628,685,356 1,019,628,450 1,127,285,074 1,261,947,903
add Back
Depreciation 95,676,000 93,847,300 202,486,440 182,126,724 163,825,194 147,371,589 132,577,561
Financial Charges 34,689,000 34,689,000 107,786,200 90,441,700 79,930,490 49,480,780 19,031,069
Amortization 150,957,000 150,957,000 154,077,500 154,077,500 3,120,000 3,120,000 3,120,000
Others 2,020,000 (1,344,000) (4,171,000) (4,171,000) (4,171,006) (4,171,000) (4,171,000)
283,342,000 278,149,300 460,179,140 422,474,924 242,704,678 195,801,368 150,557,630

Operating Profit before working capital changes 151,158,000 212,659,164 859,522,090 1,051,160,280 1,262,333,128 1,323,086,442 1,412,505,533
Changes in Working Capital:
(Increse) / Decrease in Current Assests
Trade Debts 4,019,000 (5,549,004) (28,671,484) (34,045,098) (37,024,044) (12,064,731) (12,667,968)
Stores and Stock in trade 17,439,000 (7,510,015) (7,816,424) (8,135,334) (8,467,256) (8,812,720) (9,172,279)
Loan & Advances 9,971,000 (13,362,857) (65,402,916) 41,460,834 39,123,189 58,709,311 58,235,938
Trade Deposits and Other Receivables (2,220,000) (7,231,229) (7,526,263) (7,833,334) (8,152,935) (8,485,574) (8,831,786)
29,209,000 (33,653,105) (109,417,087) (8,552,932) (14,521,044) 29,346,286 27,563,906
(Decrease) / Increase in Current Liabilities
Trade Payable (15,121,000) 9,983,700 (144,968,974) 6,281,945 6,831,615 2,226,164 2,337,473
Accrued & Other Liabilities (excluding fiancial charges) 8,264,520 (43,507,253) 26,715,028 28,556,204 10,863,220 12,544,452
(15,121,000) 18,248,220 (188,476,227) 32,996,973 35,387,819 13,089,384 14,881,925
NET CHANGES IN WORKING CAPITAL 14,088,000 (15,404,885) (297,893,314) 24,444,041 20,866,775 42,435,670 42,445,830
CASH GENERATED FROM OPERATIONS 165,246,000 197,254,280 561,628,776 1,075,604,321 1,283,199,903 1,365,522,112 1,454,951,363
APPLICATIONS OF FUNDS
Tax (2,365,000) (7,837,941) (16,029,563) (58,190,428) (413,335,462) (449,335,243)
Lease Payment
Financial Charges paid (34,030,000) (34,689,000) (107,786,200) (90,441,700) (79,930,490) (49,480,780) (19,031,069)
(36,395,000) (34,689,000) (115,624,140) (106,471,262) (138,120,918) (462,816,241) (468,366,312)
NET CASH FROM OPERATING ACTIVITIES 128,851,000 162,565,280 446,004,635 969,133,059 1,145,078,985 902,705,870 986,585,051
CAHS FLOW FROM INVESTING ACTIVITIES

Fixed Capital Expenditure (15,152,000) (1,181,627,102) -

Deferred Cost - (15,600,000) -
Long Term Investment
Long Term Deposit (253,000) 253,000 -
NET CASH FROM INVESTING ACTIVITIES (15,405,000) (1,196,974,102) - - - - -
CASH FLOW FROM FINANCING ACTIVITIES
Long term Loans obtained 753,680,832 -
Share Capital 327,126,062 -
Others (13,094,000) - -
Repayment of Long Term Loans (192,000) (997,000) - - (251,226,944) (251,226,944) (251,226,944)
NET CASH (USED IN) / FINANCING ACTIVITIES (13,286,000) 1,079,809,894 - - (251,226,944) (251,226,944) (251,226,944)
NET CASH FLOW DURING THE PERIOD 100,160,000 45,401,072 446,004,635 969,133,059 893,852,041 651,478,926 735,358,107
CASH AND BANK AT BEGINNING OF PERIOD (569,897,000) (469,737,000) (424,335,928) 21,668,707 990,801,766 1,884,653,806 2,536,132,733
CASH AND BANK AT THE CLOSE OF PERIOD (469,737,000) (424,335,928) 21,668,707 990,801,766 1,884,653,806 2,536,132,733 3,271,490,840
(545,839,430)
(76,102,430)
FIXED ASSETS SCHEDULE

2005 COST DEPRECIATION

Rate
Opening Additons Closing % Opening For the Closing
W.D.V.
Balance (Deletions) Balance Balance Year Balance
LAND 413,280,000 413,280,000 413,280,000
BUILDING 255,732,000 - 255,732,000 10 17,564,000 16,168,000 33,732,000 222,000,000
MACHINERY & ERECTION 847,804,000 15,000,000 862,804,000 10 84,780,000 77,803,000 162,583,000 700,221,000
ELECTRICAL & OTHER FITTINGS - - - 10 - - -
FURNITURE & FIXTURE 22,573,000 152,000 22,725,000 10 19,995,000 362,000 20,357,000 2,368,000
VEHICLES 94,670,000 1,189,000 95,859,000 20 87,574,000 1,343,000 88,917,000 6,942,000
1,634,059,000 16,341,000 1,650,400,000 209,913,000 95,676,000 305,589,000 1,344,811,000

2006 COST DEPRECIATION

Rate
Opening Additons Closing % Opening For the Closing
W.D.V.
Balance (Deletions) Balance Balance Year Balance
LAND 413,280,000 - 413,280,000 413,280,000
BUILDING 255,732,000 - 255,732,000 10 33,732,000 22,200,000 55,932,000 199,800,000
MACHINERY & ERECTION 862,804,000 - 862,804,000 10 162,583,000 70,022,100 232,605,100 630,198,900
ELECTRICAL & OTHER FITTINGS - - - 10 - - - -
FURNITURE & FIXTURE 22,725,000 - 22,725,000 10 20,357,000 236,800 20,593,800 2,131,200
VEHICLES 95,859,000 - 95,859,000 20 88,917,000 1,388,400 90,305,400 5,553,600
1,650,400,000 - 1,650,400,000 305,589,000 93,847,300 399,436,300 1,250,963,700

YEAR 1 COST DEPRECIATION

Rate
Opening Additons Closing % Opening For the Closing
W.D.V.
Balance (Deletions) Balance Balance Year Balance
LAND 413,280,000 413,280,000 - 413,280,000
BUILDING 255,732,000 120,000,000 375,732,000 10 55,932,000 31,980,000 87,912,000 287,820,000
MACHINERY & ERECTION 862,804,000 1,023,627,102 1,886,431,102 10 232,605,100 165,382,600 397,987,700 1,488,443,402
ELECTRICAL & OTHER FITTINGS - 38,000,000 38,000,000 10 - 3,800,000 3,800,000 34,200,000
FURNITURE & FIXTURE 22,725,000 22,725,000 10 20,593,800 213,120 20,806,920 1,918,080
VEHICLES 95,859,000 95,859,000 20 90,305,400 1,110,720 91,416,120 4,442,880
1,650,400,000 1,181,627,102 2,832,027,102 399,436,300 202,486,440 601,922,740 2,230,104,362

YEAR 2 COST DEPRECIATION

Rate
Opening Additions Closing Opening For the Closing

ACCOUNTING DEPRECIATION SCHEDULE

% W.D.V.
Balance (Deletions) Balance Balance Year Balance
LAND 413,280,000 413,280,000 413,280,000
BUILDING 375,732,000 375,732,000 10 87,912,000 28,782,000 116,694,000 259,038,000
MACHINERY & ERECTION 1,886,431,102 1,886,431,102 10 397,987,700 148,844,340 546,832,040 1,339,599,062
ELECTRICAL & OTHER FITTINGS 38,000,000 38,000,000 10 3,800,000 3,420,000 7,220,000 30,780,000
FURNITURE & FIXTURE 22,725,000 22,725,000 10 20,806,920 191,808 20,998,728 1,726,272
VEHICLES 95,859,000 95,859,000 20 91,416,120 888,576 92,304,696 3,554,304
2,832,027,102 2,832,027,102 601,922,740 182,126,724 784,049,464 2,047,977,638

YEAR 3 COST DEPRECIATION

Rate
Opening Additions Closing % Opening For the Closing
W.D.V.
Balance (Deletions) Balance Balance Year Balance
LAND 413,280,000 413,280,000 413,280,000
BUILDING 375,732,000 375,732,000 10 116,694,000 25,903,800 142,597,800 233,134,200
MACHINERY & ERECTION 1,886,431,102 1,886,431,102 10 546,832,040 133,959,906 680,791,947 1,205,639,155
ELECTRICAL & OTHER FITTINGS 38,000,000 38,000,000 10 7,220,000 3,078,000 10,298,000 27,702,000
FURNITURE & FIXTURE 22,725,000 22,725,000 10 20,998,728 172,627 21,171,355 1,553,645
VEHICLES 95,859,000 95,859,000 20 92,304,696 710,861 93,015,557 2,843,443
2,832,027,102 2,832,027,102 784,049,464 163,825,194 947,874,659 1,884,152,443

YEAR 4 COST DEPRECIATION

Rate
Opening Additions Closing % Opening For the Closing
W.D.V.
Balance (Deletions) Balance Balance Year Balance
LAND 413,280,000 413,280,000 413,280,000
BUILDING 375,732,000 375,732,000 10 142,597,800 23,313,420 165,911,220 209,820,780
MACHINERY & ERECTION 1,886,431,102 1,886,431,102 10 680,791,947 120,563,916 801,355,862 1,085,075,240
ELECTRICAL & OTHER FITTINGS 38,000,000 38,000,000 10 10,298,000 2,770,200 13,068,200 24,931,800
FURNITURE & FIXTURE 22,725,000 22,725,000 10 21,171,355 155,364 21,326,720 1,398,280
VEHICLES 95,859,000 95,859,000 20 93,015,557 568,689 93,584,245 2,274,755
2,832,027,102 2,832,027,102 947,874,659 147,371,589 1,095,246,247 1,736,780,855

YEAR 5 COST DEPRECIATION

Rate
Opening Additons Closing % Opening For the Closing
W.D.V.
Balance (Deletions) Balance Balance Year Balance
LAND 413,280,000 413,280,000 413,280,000
BUILDING 375,732,000 375,732,000 10 165,911,220 20,982,078 186,893,298 188,838,702
MACHINERY & ERECTION 1,886,431,102 1,886,431,102 10 801,355,862 108,507,524 909,863,386 976,567,716
ELECTRICAL & OTHER FITTINGS 38,000,000 38,000,000 10 13,068,200 2,493,180 15,561,380 22,438,620
FURNITURE & FIXTURE 22,725,000 22,725,000 10 21,326,720 139,828 21,466,548 1,258,452
VEHICLES 95,859,000 95,859,000 20 93,584,245 454,951 94,039,196 1,819,804
2,832,027,102 2,832,027,102 1,095,246,247 132,577,561 1,227,823,808 1,604,203,294
STOCK IN TRADE
Basis
Raw Material 30 days of purchases
Finished Goods 30 days of sales

Calculation YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

Raw Material 9,929,863 11,915,836 14,075,581 14,779,360 15,518,328

Finished Goods 160,295,625 192,354,750 227,219,048 238,580,001 250,509,001
170,225,488 204,270,586 241,294,629 253,359,361 266,027,329

TRADE DEBTS
Basis
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

Total for the period 406,286,773 364,825,939 325,702,750 266,993,439 208,757,501

Total 406,286,773 364,825,939 325,702,750 266,993,439 208,757,501

 YEARS OF OPERATION
RUPEES IN '000'

LONG TERM LOANS YEAR 0 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

OPENING BALANCE 753,680,832 753,680,832 753,680,832 753,680,832 502,453,888 251,226,944

PAID DURING THE YEAR - - 251,226,944 251,226,944 251,226,944
753,680,832 753,680,832 753,680,832 502,453,888 251,226,944 -
TRANS TO CURRENT MATURITY 251,226,944 251,226,944 251,226,944 -
753,680,832 753,680,832 502,453,888 251,226,944 - -

FINANCIAL CHARGES
PAID DURING THE YEAR 90,441,700 90,441,700 79,930,490 49,480,780 19,031,069
- 90,441,700 90,441,700 79,930,490 49,480,780 19,031,069
CREDITOR, ACCRUED EXPENSES AND OTHER LIABILITIES

Basis
CREDITORS
RAW MATERIAL 60 DAYS OF PURCHASES
STORES & SPARES 60 DAYS OF PURCHASES

ACCRUED EXPENSES
UTILITIES 30 DAYS

OTHER LIABILITIES
W.P.P.F Based on the accrual for the year
W.W.F Based on the accrual for the year

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

Creditors
RAW MATERIAL 19,859,726 23,831,672 28,151,162 29,558,720 31,036,656
STORES & SPARES 11,550,000 13,860,000 16,372,125 17,190,731 18,050,268
31,409,726 37,691,672 44,523,287 46,749,451 49,086,924

Accrued Expenses
UTILITIES 73,171,875 87,806,250 103,721,133 108,907,189 114,352,549
AUDIT FEE 200,000 210,000 220,500 231,525 243,100
73,371,875 88,016,250 103,941,633 109,138,714 114,595,649

Other Liabilities
W.P.P.F 29,127,392 41,198,045 53,828,866 59,495,004 66,582,521
W.W.F
29,127,392 41,198,045 53,828,866 59,495,004 66,582,521

133,908,993 166,905,967 202,293,786 215,383,170 230,265,094

 NOTES TO FINANCIAL STATEMENTS

RUPEES IN ' 000 '

1. SALES YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
GROSS SALES 3,205,912,500 3,847,095,000 4,544,380,969 4,771,600,017 5,010,180,018
EXCISE DUTY (Rs. 750 per ton of Cement) 496,125,000 567,000,000 637,875,000 637,875,000 637,875,000
SALES TAX (15% on sales net of duty paid) 406,468,125 492,014,250 585,975,895 620,058,753 655,845,753
NET SALES 2,303,319,375 2,788,080,750 3,320,530,073 3,513,666,265 3,716,459,265

2. COST OF SALES
RAW MATERIAL CONSUMED 231,455,564 141,004,056 166,747,227 176,648,541 185,480,968
STORES & SPARES CONSUMED 69,300,000 83,160,000 98,232,750 103,144,388 108,301,607
LABOUR COSTS 72,450,000 86,940,000 102,697,875 107,832,769 113,224,407

MANUFACTURING EXPENSES
PEPAIR & MAINTENANCE 72,450,000 86,940,000 102,697,875 107,832,769 113,224,407
ELECTRICITY 352,800,000 423,360,000 500,094,000 525,098,700 551,353,635
COAL 525,262,500 630,315,000 744,559,594 781,787,573 820,876,952
PACKING MATERIAL 144,312,840 173,175,408 204,563,451 214,791,623 225,531,204
OTHER MANUFACTURING EXENSES 43,470,000 52,164,000 61,618,725 64,699,661 67,934,644
INSURANCE 4,460,209 4,095,955 3,768,305 3,473,562 3,208,407
DEPREICTION 202,486,440 182,126,724 163,825,194 147,371,589 132,577,561
1,345,241,989 1,552,177,087 1,781,127,143 1,845,055,477 1,914,706,811
ADD: FINISHED GOODS - OPN 19,326,934 160,295,625 192,354,750 227,219,048 238,580,001
LESS: FINISHED GOODS - CLG (160,295,625) (192,354,750) (227,219,048) (238,580,001) (250,509,001)
COGOS 1,577,478,862 1,831,222,019 2,113,940,697 2,221,320,222 2,309,784,793

3. GENERAL & ADMIN. EXPENSES

SALARIES & OTHER BENEFITS 2,568,000 2,696,400 2,831,220 2,972,781 3,121,420
EMPLOYEES' WELFARE 2,303,319 2,788,081 3,320,530 3,513,666 3,716,459
OFFICE EXPENSES 6,909,958 8,364,242 9,961,590 10,540,999 11,149,378
AUDIT FEE 200,000 210,000 220,500 231,525 243,100
TOTAL 11,981,278 14,058,723 16,333,840 17,258,971 18,230,357

4. SELLING & DISTRIBUTION

SALARIES & OTHER BENEFITS 492,000 516,600 542,430 569,552 598,029
ADVERTISING 17,274,895 20,910,606 24,903,976 26,352,497 27,873,444
SALES & PROMOTION 5,758,298 6,970,202 8,301,325 8,784,166 9,291,148
TOTAL 23,525,194 28,397,408 33,747,731 35,706,214 37,762,622
 Working days in a year 300
Clinker Production 300
Cement Production 3,000 Tons
Gypsum 150 Tons
Total 3,150 Tons
Total Production in a year 945,000 Tons
Projection 5%

NOTES TO FINANCIAL STATEMENTS CEMENT

RUPEES IN ' 000 '
Total Clinker 792,000 792,000 891,000 891,000 891,000
Total Production 756,000 756,000 850,500 850,500 850,500
Capacity Utilised 80% 80% 90% 90% 90%
1. SALES YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
GROSS SALES Cement+Gypsum 4400/ ton 3,092,512,500 3,711,015,000 4,383,636,469 4,602,818,292 4,832,959,207
EXCISE DUTY (Rs. 750 per ton of Cement) Cement+Gypsum 750/ ton 496,125,000 567,000,000 637,875,000 637,875,000 637,875,000
SALES TAX (15% on sales net of duty paid) Gross-Excise = 547.50 / ton 389,458,125 471,602,250 561,864,220 594,741,494 629,262,631
NET SALES 3102.50/ ton 2,206,929,375 2,672,412,750 3,183,897,248 3,370,201,798 3,565,821,576

2. COST OF SALES
RAW MATERIAL CONSUMED 125.38 ton of clinker 99,298,631 128,185,506 151,588,388 160,589,583 168,619,062
STORES & SPARES CONSUMED 79.55 ton of clinker 63,000,000 75,600,000 89,302,500 93,767,625 98,456,006
LABOUR COSTS 88 ton of Cement 66,150,000 79,380,000 93,767,625 98,456,006 103,378,807

MANUFACTURING EXPENSES
PEPAIR & MAINTENANCE 88 ton of Cement 66,150,000 79,380,000 93,767,625 98,456,006 103,378,807
ELECTRICITY 438 ton of Cement 330,750,000 396,900,000 468,838,125 492,280,031 516,894,033
COAL 634 ton of Cement 479,587,500 575,505,000 679,815,281 713,806,045 749,496,348
PACKING MATERIAL 191 ton of Cement 144,312,840 173,175,408 204,563,451 214,791,623 225,531,204
OTHER MANUFACTURING EXENSES 53 ton of Cement 39,690,000 47,628,000 56,260,575 59,073,604 62,027,284
INSURANCE 0.2% of Fixed Assets WDV 4,072,364 3,739,785 3,440,626 3,171,513 2,929,415
DEPREICTION WDV @ 10 % 184,878,924 166,289,618 149,579,525 134,556,668 121,049,077
1,249,441,628 1,442,617,811 1,656,265,208 1,716,135,491 1,781,306,167
ADD: FINISHED GOODS - OPN 146,356,875 175,628,250 207,460,870 217,833,914
LESS: FINISHED GOODS - CLG (146,356,875) (175,628,250) (207,460,870) (217,833,914) (228,725,610)
COGS 1761.57 / ton of Cement 1,268,533,384 1,620,911,942 1,869,788,601 1,964,808,036 2,042,412,340

GROSS PROFIT 1340.93 / ton of Cement 938,395,991 1,051,500,808 1,314,108,648 1,405,393,762 1,523,409,235

3. GENERAL & ADMIN. EXPENSES 89.95 / ton of Cement #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

4. SELLING & DISTRIBUTION 34.54 / ton of Cement 23,525,194 28,397,408 33,747,731 35,706,214 37,762,622
OPERATING PROFIT #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
FINANCE COST 64.11 / ton Bank Rate 14% 107,786,200 90,441,700 79,930,490 49,480,780 19,031,069
PROFIT AFTER FINANCE COST #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
OTHER CHARGES:
WPPF 29,127,392 41,198,045 53,828,866 59,495,004 66,582,521
WWF
29,127,392 41,198,045 53,828,866 59,495,004 66,582,521
PROFIT BEFORE TAX #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
INCOME TAX EXPENSES 16,029,563 58,190,428 413,335,462 449,335,243 495,652,967
PROFIT AVAILABLE FOR APPROPRIATION #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
DIVIDEND
RETAINED PROFIT 1071.09 / ton of Cement #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
UNAPPROPRIATED PROFIT B/F #VALUE! #VALUE! #VALUE! #VALUE!
UNAPPROPRIATED PROFIT C/F #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
 Working days in a year 300
Clinker 300 Tons
Total Production in a year 90,000 Tons
Projection 5%

NOTES TO FINANCIAL STATEMENTS CLINKER

Total Production 54,000 72,000 81,000 81,000 81,000
Capacity Utilised 60% 80% 90% 90% 90%
RUPEES IN ' 000 '
1. SALES YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
GROSS SALES 1800 / ton 113,400,000 136,080,000 160,744,500 168,781,725 177,220,811
EXCISE DUTY (Rs. 750 per ton of Cement) - - - - -
SALES TAX (15% on sales net of duty paid) 270 / ton 17,010,000 20,412,000 24,111,675 25,317,259 26,583,122
NET SALES 1530 / ton 96,390,000 115,668,000 136,632,825 143,464,466 150,637,690

2. COST OF SALES
RAW MATERIAL CONSUMED 183.89 ton of clinker 9,929,863 12,818,551 15,158,839 16,058,958 16,861,906
STORES & SPARES CONSUMED 116.67 ton of clinker 6,300,000 7,560,000 8,930,250 9,376,763 9,845,601
LABOUR COSTS 116.67 ton of Clinker 6,300,000 7,560,000 8,930,250 9,376,763 9,845,601

MANUFACTURING EXPENSES
PEPAIR & MAINTENANCE 116.67 ton of Clinker 6,300,000 7,560,000 8,930,250 9,376,763 9,845,601
ELECTRICITY 408.33 ton of clinker 22,050,000 26,460,000 31,255,875 32,818,669 34,459,602
COAL 845.83 ton of clinker 45,675,000 54,810,000 64,744,313 67,981,528 71,380,605
PACKING MATERIAL - - - - -
OTHER MANUFACTURING EXENSES 70.00 ton of clinker 3,780,000 4,536,000 5,358,150 5,626,058 5,907,360
INSURANCE 0.2% of Fixed Assets WDV 387,844 356,170 327,679 302,049 278,992
DEPREICTION WDV @ 10 % 17,607,517 15,837,106 14,245,669 12,814,921 11,528,484
95,800,361 109,559,276 124,861,935 128,919,986 133,400,643
ADD: FINISHED GOODS - OPN 13,938,750 16,726,500 19,758,178 20,746,087
LESS: FINISHED GOODS - CLG (13,938,750) (16,726,500) (19,758,178) (20,746,087) (21,783,391)
COGS 1369.07 / ton 98,091,474 127,150,077 145,919,346 153,367,798 159,070,846

GROSS PROFIT 160.93 / ton (1,701,474) (11,482,077) (9,286,521) (9,903,332) (8,433,156)

3. GENERAL & ADMIN. EXPENSES - - - - -

4. SELLING & DISTRIBUTION - - - - -

OPERATING PROFIT 160.93 / ton (1,701,474) (11,482,077) (9,286,521) (9,903,332) (8,433,156)
FINANCE COST - - - - -
PROFIT AFTER FINANCE COST (1,701,474) (11,482,077) (9,286,521) (9,903,332) (8,433,156)
OTHER CHARGES:
WPPF - - - - -
WWF
- - - - -
PROFIT BEFORE TAX (1,701,474) (11,482,077) (9,286,521) (9,903,332) (8,433,156)
INCOME TAX EXPENSES - - - - -
PROFIT AVAILABLE FOR APPROPRIATION (1,701,474) (11,482,077) (9,286,521) (9,903,332) (8,433,156)
DIVIDEND - - - - -
RETAINED PROFIT 160.93 / TON (1,701,474) (11,482,077) (9,286,521) (9,903,332) (8,433,156)
UNAPPROPRIATED PROFIT B/F (1,701,474) (13,183,551) (22,470,072) (32,373,404)
UNAPPROPRIATED PROFIT C/F (1,701,474) (13,183,551) (22,470,072) (32,373,404) (40,806,560)
 105% 102%

TONS DAYS PRODUCTION %

ANNUAL 3,300 300 990,000
CLINKER 300 300 90,000 9.09
CEMENT
Clinker Consumption 3,000 300 900,000 90.91
Gypsum Consumption 150 300 45,000
3,150 945,000

PRODUCTION
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
EFFICIENCY 70% 80% 90% 90% 90%
TOTAL PRODUCTION 693,000 792,000 891,000 891,000 891,000

CLINKER 63,000 72,000 81,000 81,000 81,000

CEMENT 661,500 756,000 850,500 850,500 850,500
724,500 828,000 931,500 931,500 931,500

PRICE PER TON

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

CLINKER 1,800 1,890 1,985 2,084 2,188

CEMENT 4,675 4,909 5,154 5,412 5,682

SALES PER YEAR

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

CLINKER 113,400,000 136,080,000 160,744,500 168,781,725 177,220,811

CEMENT 3,092,512,500 3,711,015,000 4,383,636,469 4,602,818,292 4,832,959,207
TOTAL VALUE
OPENING INVENTORY
CLOSING INVENTORY
SALES 3,205,912,500 3,847,095,000 4,544,380,969 4,771,600,017 5,010,180,018
 105%

RAW MATERIALS
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

TOTAL PRODUCTION) 693,000 792,000 891,000 891,000 891,000

CEMENT 630,000 720,000 810,000 810,000 810,000
CLINKER 63,000 72,000 81,000 81,000 81,000

LIME STONE
Lime stone is consumed @ 1.32 ton of clinker @ Rs. 87/- per ton. Increased with inflation thereafter

CONSUMPTION RATE 1.32 1.32 1.32 1.32 1.32

RATE PER TON (Rs.) 87.00 91.35 95.92 100.71 105.75

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

LIME STONE 86,216,130 103,459,356 122,211,364 128,321,932 134,738,029
OPENING INVENTORY 7,184,677 8,621,613 10,184,280 10,693,494
CLOSING INVENTORY 7,184,677 8,621,613 10,184,280 10,693,494 11,228,169

NET 79,031,452 102,022,420 120,648,697 127,812,718 134,203,354

SHALE & SLATE

Shale & Slate is consumed @ 0.17 tons/clinker @ Rs. 74/-per ton. Increased with inflation thereafter.

CONSUMPTION RATE 0.17 0.17 0.17 0.17 0.17

RATE PER TON (Rs.) 74 77.70 81.59 85.66 89.95

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

SHALE & SLATE 9,444,435 11,333,322 13,387,487 14,056,861 14,759,704
OPENING INVENTORY 787,036 944,443 1,115,624 1,171,405
CLOSING INVENTORY 787,036 944,443 1,115,624 1,171,405 1,229,975

NET 8,657,399 11,175,915 13,216,306 14,001,080 14,701,134

SAND STONE
Sand is consumed @ 0.03 tons/clinker @ Rs.63 /-per ton. Increased with inflation thereafter.

CONSUMPTION RATE 0.03 0.03 0.03 0.03 0.03

RATE PER TON (Rs.) 63 66.15 69.46 72.93 76.58

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

LATERITE 1,418,917 1,702,701 2,011,316 2,111,881 2,217,475
OPENING INVENTORY 118,243 141,892 167,610 175,990
CLOSING INVENTORY 118,243 141,892 167,610 175,990 184,790

NET 1,300,674 1,679,052 1,985,598 2,103,501 2,208,676

 105%

LATERITE
Laterite is consumed @ 0.03 ton of clinker @ Rs.450/- per ton. Increased with inflation thereafter

CONSUMPTION RATE 0.03 0.03 0.03 0.03 0.03

RATE PER TON (Rs.) 450 472.50 496.13 520.93 546.98

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

LATERITE 10,135,125 12,162,150 14,366,540 15,084,867 15,839,110
OPENING INVENTORY 844,594 1,013,512 1,197,212 1,257,072
CLOSING INVENTORY 844,594 1,013,512 1,197,212 1,257,072 1,319,926

NET 9,290,531 11,993,231 14,182,841 15,025,006 15,776,256

GYPSUM
Gypsum is consumed @ 0.05 tons/clinker @ Rs.350/-per ton. Increased with inflation thereafter.

CONSUMPTION RATE 0.05 0.05 0.05 0.05 0.05

RATE PER TON (Rs.) 350 367.50 385.88 405.17 425.43

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

GYPSUM 11,943,750 14,332,500 16,930,266 17,776,779 18,665,618
OPENING INVENTORY 995,312 1,194,375 1,410,855 1,481,398
CLOSING INVENTORY 995,312 1,194,375 1,410,855 1,481,398 1,555,468

NET 10,948,437 14,133,437 16,713,785 17,706,236 18,591,548

 105%

TOTAL RAW MATERIALS

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
TOTAL MATERIALS 119,158,357 142,990,029 168,906,972 177,352,320 186,219,936
OPENING INVENTORY 122,227,070 9,929,863 11,915,836 14,075,581 14,779,360
CLOSING INVENTORY 9,929,863 11,915,836 14,075,581 14,779,360 15,518,328

NET 231,455,564 141,004,056 166,747,227 176,648,541 185,480,968

STORES & SPARES

These are consumed at rate of Rs. 100/- per ton of cement and increased at rate of 5% as years proceeds.

CONSUMPTION RATE
CEMENT 100 105 110 116 122
CLINKER 100 105 110 116 122

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

CEMENT 63,000,000 75,600,000 89,302,500 93,767,625 98,456,006

CLINKER 6,300,000 7,560,000 8,930,250 9,376,763 9,845,601
NET 69,300,000 83,160,000 98,232,750 103,144,388 108,301,607
 105%

COST OF SALES
1. COST OF DIRECT LABOUR
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

CLINKER 63,000 72,000 81,000 81,000 81,000

CEMENT 661,500 756,000 850,500 850,500 850,500
TOTAL PRODUCTION 724,500 828,000 931,500 931,500 931,500

AVERAGE LABOUR COST PER TON 100 105.00 110.25 115.76 121.55
TOTAL LABOUR COST 72,450,000 86,940,000 102,697,875 107,832,769 113,224,407

2. REPAIR & MAINTENANCE: This is consumed at Rs.100 Per ton of cement.

RATE 100 105.00 110.25 115.76 121.55

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
72,450,000 86,940,000 102,697,875 107,832,769 113,224,407

3. UTILITIES & OTHER MANUFACTURING EXPENSES

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
CAPACITY 70% 85% 90% 90% 90%
CLINKER 63,000 72,000 81,000 81,000 81,000
CEMENT 661,500 756,000 850,500 850,500 850,500
724,500 828,000 931,500 931,500 931,500

ELECTRIC CONSUMPTION: This is consumed at Rs.500 Per ton of cement.

RATE
CLINKER 350 368 386 405 425
CEMENT 500 525 551 579 608

COST
CLINKER 22,050,000 26,460,000 31,255,875 32,818,669 34,459,602
CEMENT 330,750,000 396,900,000 468,838,125 492,280,031 516,894,033
AMOUNT 352,800,000 423,360,000 500,094,000 525,098,700 551,353,635

COAL CONSUMPTION This is consumed at Rs.750 Per ton clinker

RATE PER TON OF CLINKER 725 761 799 839 881

AMOUNT 525,262,500 630,315,000 744,559,594 781,787,573 820,876,952

PACKING MATERIAL These are consumed at 20 bags per ton of cement sold at Rs. 10 Per bag.
BAGS PER TON 20.2 20.2 20.2 20.2 20.2
RATE PER BAG 10.8 11.34 11.91 12.50 13.13
AMOUNT 144,312,840 173,175,408 204,563,451 214,791,623 225,531,204
OTHER MANF. EXPENSES These are consumed at Rs. 60 /- per ton of clinker thereafter increased at rate of 5%.
RATE PER TON OF CLINKER 60 63 66 69 73
AMOUNT 43,470,000 52,164,000 61,618,725 64,699,661 67,934,644
 105%

ADMIN. & SELLING COSTS

COST OF HUMAN RESOURCE

SELLING & DIST. DEPTT. YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

SALES MANGER 1 25,000 300,000 315,000 330,750 347,288 364,652
SALES - STAFF 2 8,000 192,000 201,600 211,680 222,264 233,377
TOTAL SALES DEPTT. 492,000 516,600 542,430 569,552 598,029

ADMIN. DEPTT.
MANAGERIAL:
PLANT MANAGER 1 50,000 600,000 630,000 661,500 694,575 729,304
MECHANICAL MANAGER 1 25,000 300,000 315,000 330,750 347,288 364,652
ELECTRICAL MANAGER 1 25,000 300,000 315,000 330,750 347,288 364,652
ACCOUNTS MANAGER 1 25,000 300,000 315,000 330,750 347,288 364,652
1,500,000 1,575,000 1,653,750 1,736,438 1,823,259

STAFF:
ADMIN. STAFF 4 8,000 384,000 403,200 423,360 444,528 466,754
ACCOUNT STAFF 4 8,000 384,000 403,200 423,360 444,528 466,754
OTHERS 5 5,000 300,000 315,000 330,750 347,288 364,652
1,068,000 1,121,400 1,177,470 1,236,344 1,298,161

TOTAL ADMIN. DEPTT. 2,568,000 2,696,400 2,831,220 2,972,781 3,121,420

TOTAL COST. 3,060,000 3,213,000 3,373,650 3,542,333 3,719,449

 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
SALES 2,303,319,375 2,788,080,750 3,320,530,073 3,513,666,265 3,716,459,265

4. ADVERTISING These are taken at 0.75 % of Sales.

17,274,895 20,910,606 24,903,976 26,352,497 27,873,444

5. SALES & PROMOTION These are taken at 0.25% of Sales.

5,758,298 6,970,202 8,301,325 8,784,166 9,291,148

6. OFFICE EXPENSES These are taken at 0.30 % of Sales.

6,909,958 8,364,242 9,961,590 10,540,999 11,149,378

7. EMPLOYEES' WELFARE: These are taken at 0.10 % of Sales.

2,303,319 2,788,081 3,320,530 3,513,666 3,716,459

FIXED ASSETS- WDV 2,230,104,362 2,047,977,638 1,884,152,443 1,736,780,855 1,604,203,294

8. INSURANCE: These are taken at 0.2% if written down value of fixed assets.
4,460,209 4,095,955 3,768,305 3,473,562 3,208,407

9. ADDIT FEE: These are increased at @ 5%.

200,000 210,000 220,500 231,525 243,100
10. PRELIMINARY EXPENSES These are amortized over a period of 5 years.

PRE-PRODUCTION EXP. 12,000,000

CONTINGENCIES 3,600,000
TOTAL 15,600,000 15,600,000 12,480,000 9,360,000 6,240,000 3,120,000
LESS: AMORTIZED 3,120,000 3,120,000 3,120,000 3,120,000 3,120,000
C/O TO BALL. SHEET 15,600,000 12,480,000 9,360,000 6,240,000 3,120,000 -

DEFERRED COST BEFORE INTRODUCTION OF NEW PLANT

YEAR 0 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
FINANCIAL CHARGES 301,915,000

TOTAL 301,915,000 301,915,000 150,957,500

LESS: AMORTIZED 150,957,500 150,957,500 - - -
C/O TO BAL SHEET 301,915,000 150,957,500 - - - -
PROVISION FOR TAX
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Profit (Loss) before tax 582,547,842 823,960,901 1,076,577,316 1,189,900,078 1,331,650,424
Add: Inadmissible Expenses
Accounting Depreciation 202,486,440 182,126,724 163,825,194 147,371,589 132,577,561

202,486,440 182,126,724 163,825,194 147,371,589 132,577,561

Less: Admissible Expenses

Tax Depreciation 822,620,861 66,108,604 59,444,048 53,456,686 48,076,652

822,620,861 66,108,604 59,444,048 53,456,686 48,076,652

Accumulated tax loss C/F (736,134,076) (773,720,656)

Taxable income (773,720,656) 166,258,365 1,180,958,462 1,283,814,980 1,416,151,333

Rate
Turnover tax 0.50% 0.50% 0.50% 0.50% 0.50%
Tax rate on taxable income 35% 35% 35% 35% 35%

Provision on the basis of :

Turnover 16,029,563 19,235,475 22,721,905 23,858,000 25,050,900

Taxable income (270,802,229) 58,190,428 413,335,462 449,335,243 495,652,967

Tax Provided in projections 16,029,563 58,190,428 413,335,462 449,335,243 495,652,967

FIXED ASSETS SCHEDULE
YEAR 1 COST DEPRECIATION
Rate
Opening Additons Closing Opening For the Closing W.D.V.
%
Balance (Deletions) Balance Balance Year Balance
LAND 6,580,000 6,580,000 6,580,000
BUILDING 6,932,000 120,000,000 126,932,000 10 12,693,200 12,693,200 114,238,800
MACHINERY & ERECTION 285,350,000 1,023,627,102 1,308,977,102 60 785,386,261 785,386,261 523,590,841
ELECTRICAL & OTHER FITTINGS 1,389,000 38,000,000 39,389,000 10 23,633,400 23,633,400 15,755,600
FURNITURE & FIXTURE 2,368,000 2,368,000 10 236,800 236,800 2,131,200
VEHICLES 3,356,000 3,356,000 20 671,200 671,200 2,684,800
305,975,000 1,181,627,102 1,487,602,102 822,620,861 822,620,861 664,981,241

YEAR 2 COST DEPRECIATION

Rate
Opening Additions Closing Opening For the Closing W.D.V.
%
Balance (Deletions) Balance Balance Year Balance
LAND 6,580,000 6,580,000 6,580,000
BUILDING 126,932,000 126,932,000 10 12,693,200 11,423,880 24,117,080 102,814,920
MACHINERY & ERECTION 1,308,977,102 1,308,977,102 10 785,386,261 52,359,084 837,745,345 471,231,757
ELECTRICAL & OTHER FITTINGS 39,389,000 39,389,000 10 23,633,400 1,575,560 25,208,960 14,180,040

TAX DEPRECIATION SCHEDULE

FURNITURE & FIXTURE 2,368,000 2,368,000 10 236,800 213,120 449,920 1,918,080
VEHICLES 3,356,000 3,356,000 20 671,200 536,960 1,208,160 2,147,840
1,487,602,102 - 1,487,602,102 822,620,861 66,108,604 888,729,465 598,872,637

YEAR 3 COST DEPRECIATION

Rate
Opening Additions Closing Opening For the Closing W.D.V.
%
Balance (Deletions) Balance Balance Year Balance
LAND 6,580,000 6,580,000 6,580,000
BUILDING 126,932,000 126,932,000 10 24,117,080 10,281,492 34,398,572 92,533,428
MACHINERY & ERECTION 1,308,977,102 1,308,977,102 10 837,745,345 47,123,176 884,868,521 424,108,581
ELECTRICAL & OTHER FITTINGS 39,389,000 39,389,000 10 25,208,960 1,418,004 26,626,964 12,762,036
FURNITURE & FIXTURE 2,368,000 2,368,000 10 449,920 191,808 641,728 1,726,272
VEHICLES 3,356,000 3,356,000 20 1,208,160 429,568 1,637,728 1,718,272
1,487,602,102 - 1,487,602,102 888,729,465 59,444,048 948,173,513 535,984,045

YEAR 4 COST DEPRECIATION

Rate
Opening Additions Closing Opening For the Closing W.D.V.
%
Balance (Deletions) Balance Balance Year Balance
LAND 6,580,000 6,580,000 6,580,000
BUILDING 126,932,000 126,932,000 10 34,398,572 9,253,343 43,651,915 83,280,085
MACHINERY & ERECTION 1,308,977,102 1,308,977,102 10 884,868,521 42,410,858 927,279,379 381,697,723
ELECTRICAL & OTHER FITTINGS 39,389,000 39,389,000 10 26,626,964 1,276,204 27,903,168 11,485,832
FURNITURE & FIXTURE 2,368,000 2,368,000 10 641,728 172,627 814,355 1,553,645
VEHICLES 3,356,000 3,356,000 20 1,637,728 343,654 1,981,382 1,374,618
1,487,602,102 1,487,602,102 948,173,513 53,456,686 1,001,630,199 485,971,903

YEAR 5 COST DEPRECIATION

Rate
Opening Additions Closing Opening For the Closing W.D.V.
%
Balance (Deletions) Balance Balance Year Balance
LAND 6,580,000 6,580,000 6,580,000
BUILDING 126,932,000 126,932,000 10 43,651,915 8,328,009 51,979,923 74,952,077
MACHINERY & ERECTION 1,308,977,102 1,308,977,102 10 927,279,379 38,169,772 965,449,151 343,527,951
ELECTRICAL & OTHER FITTINGS 39,389,000 39,389,000 10 27,903,168 1,148,583 29,051,751 10,337,249
FURNITURE & FIXTURE 2,368,000 2,368,000 10 814,355 155,364 969,720 1,398,280
VEHICLES 3,356,000 3,356,000 20 1,981,382 274,924 2,256,306 1,099,694
1,487,602,102 1,487,602,102 1,001,630,199 48,076,652 1,049,706,851 437,895,251
 Year 1 Year 2 Year 3 Year 4 Year 5
Current Ratio 7.55 4.13 3.32 3.82 5.79
Debt Equity Ratio 0.31 0.25 0.14 0.06 -

8.00

7.00

6.00

5.00

4.00

3.00

2.00

1.00

-
1
Current Ratio 2 3
Debt Equity Ratio 4 5

Year

Year 1 Year 2 Year 3 Year 4 Year 5

GP Ratio 31.51 34.32 36.34 36.78 37.85
NP Ratio 16.64 20.46 18.26 19.29 20.62

40.00

35.00

30.00

25.00

20.00

15.00

10.00

5.00

-
1 2 3 4 5
GP Ratio
NP Ratio
Year
-
1 2 3 4 5
GP Ratio
NP Ratio
Year
 Year 1 Year 2 Year 3 Year 4
2,303,319,375 2,788,080,750 3,320,530,073 3,513,666,265
1,577,478,862 1,831,222,019 2,113,940,697 2,221,320,222

Amount (Rs.)
4,000,000,000

3,500,000,000

3,000,000,000

2,500,000,000

2,000,000,000

1,500,000,000

1,000,000,000

500,000,000

-
1 2 3 4 5
Year

Row 2 Row 3

1 2 3 4
423,429,387 610,610,928 646,408,988 718,065,831

900,000,000

800,000,000

700,000,000

600,000,000
Amount (Rs.)

500,000,000

400,000,000

300,000,000

200,000,000

100,000,000

-
1 2 3 4 5
Year

Row 26
 Year 1 2 3 4 5
Earning Per Share 2.09 3.01 3.19 3.54 3.98

Earning Per Share

4.50

4.00

3.50

3.00
Amount (Rs.)

2.50

2.00

1.50

1.00
Row

0.50

-
1 2 Year
3 4 5
Earning Per Share

Year 1 2 3 4 5
Non Current Assets 2,230,104,362 2,047,977,638 1,884,152,443 1,736,780,855 1,604,203,294

2,500,000,000

2,000,000,000

1,500,000,000
Amount (Rs.)

1,000,000,000

500,000,000

-
1 2 3 4 5
Non Current
Year Assets
 12%
0 (2,151,820,062.00) (2,151,820,062) 1 (2,151,820,062)
1 779,993,327.23 696,422,614 0.892857142857 696,422,614
2 946,815,152.09 754,795,242 0.797193877551 754,795,242
3 813,354,182.32 578,929,441 0.711780247813 578,929,441
4 868,557,419.36 551,983,942 0.635518078405 551,983,942
5 942,108,497.39 534,577,662 0.567426855719 534,577,662

28.49% 964,888,840 964,888,840

 12%
0 (3,093,921,102) (3,093,921,102) 1 (3,093,921,102)
1 779,993,327 696,422,614 0.892857142857 696,422,614
2 946,815,152 754,795,242 0.797193877551 754,795,242
3 813,354,182 578,929,441 0.711780247813 578,929,441
4 868,557,419 551,983,942 0.635518078405 551,983,942
5 942,108,497 534,577,662 0.567426855719 534,577,662

12.29% 22,787,800 22,787,800

 12%
0 (1,269,227,102) (1,269,227,102) 1 (1,269,227,102)
1 779,993,327 696,422,614 0.892857142857 696,422,614
2 946,815,152 754,795,242 0.797193877551 754,795,242
3 813,354,182 578,929,441 0.711780247813 578,929,441
4 868,557,419 551,983,942 0.635518078405 551,983,942
5 942,108,497 534,577,662 0.567426855719 534,577,662

60.52% 1,847,481,800 1,847,481,800

Loan Amount 942,101,040
Period 5
No. of Rentals in a year 12
Total No. of Rentals 60
IRR 12%

Remaining
No. Principal Mark-up Total Rentals Principal Mark up Principal

0 942,101,040 - 942,101,040 188,420,208 753,680,832 -

1 753,680,832 7,536,808 761,217,640 7,536,808 753,680,832
2 753,680,832 7,536,808 761,217,640 7,536,808 753,680,832
3 753,680,832 7,536,808 761,217,640 7,536,808 753,680,832
4 753,680,832 7,536,808 761,217,640 7,536,808 753,680,832
5 753,680,832 7,536,808 761,217,640 7,536,808 753,680,832
6 753,680,832 7,536,808 761,217,640 7,536,808 753,680,832
7 753,680,832 7,536,808 761,217,640 7,536,808 753,680,832
8 753,680,832 7,536,808 761,217,640 7,536,808 753,680,832
9 753,680,832 7,536,808 761,217,640 7,536,808 753,680,832
10 753,680,832 7,536,808 761,217,640 7,536,808 753,680,832
11 753,680,832 7,536,808 761,217,640 7,536,808 753,680,832
12 753,680,832 7,536,808 761,217,640 7,536,808 753,680,832 90,441,700 -
13 753,680,832 7,536,808 761,217,640 7,536,808 753,680,832
14 753,680,832 7,536,808 761,217,640 7,536,808 753,680,832
15 753,680,832 7,536,808 761,217,640 7,536,808 753,680,832
16 753,680,832 7,536,808 761,217,640 7,536,808 753,680,832
17 753,680,832 7,536,808 761,217,640 7,536,808 753,680,832
18 753,680,832 7,536,808 761,217,640 7,536,808 753,680,832
19 753,680,832 7,536,808 761,217,640 7,536,808 753,680,832
20 753,680,832 7,536,808 761,217,640 7,536,808 753,680,832
21 753,680,832 7,536,808 761,217,640 7,536,808 753,680,832
22 753,680,832 7,536,808 761,217,640 7,536,808 753,680,832
23 753,680,832 7,536,808 761,217,640 7,536,808 753,680,832
24 753,680,832 7,536,808 761,217,640 7,536,808 753,680,832 90,441,700 -
25 753,680,832 7,536,808 761,217,640 761,217,640
26 761,217,640 7,612,176 768,829,817 768,829,817
27 768,829,817 7,688,298 776,518,115 85,644,019 690,874,096
28 690,874,096 6,908,741 697,782,837 697,782,837
29 697,782,837 6,977,828 704,760,665 704,760,665
30 704,760,665 7,047,607 711,808,272 83,740,912 628,067,360
31 628,067,360 6,280,674 634,348,034 634,348,034
32 634,348,034 6,343,480 640,691,514 640,691,514
33 640,691,514 6,406,915 647,098,429 81,837,805 565,260,624
34 565,260,624 5,652,606 570,913,230 570,913,230
35 570,913,230 5,709,132 576,622,363 576,622,363
36 576,622,363 5,766,224 582,388,586 79,934,698 502,453,888 79,930,490 251,226,944
37 502,453,888 5,024,539 507,478,427 507,478,427
38 507,478,427 5,074,784 512,553,211 512,553,211
39 512,553,211 5,125,532 517,678,743 78,031,591 439,647,152
40 439,647,152 4,396,472 444,043,624 444,043,624
41 444,043,624 4,440,436 448,484,060 448,484,060
42 448,484,060 4,484,841 452,968,900 76,128,484 376,840,416
43 376,840,416 3,768,404 380,608,820 380,608,820
44 380,608,820 3,806,088 384,414,908 384,414,908
45 384,414,908 3,844,149 388,259,057 74,225,377 314,033,680
46 314,033,680 3,140,337 317,174,017 317,174,017
47 317,174,017 3,171,740 320,345,757 320,345,757
48 320,345,757 3,203,458 323,549,215 72,322,271 251,226,944 49,480,780 251,226,944
49 251,226,944 2,512,269 253,739,213 253,739,213
50 253,739,213 2,537,392 256,276,606 256,276,606
51 256,276,606 2,562,766 258,839,372 70,419,164 188,420,208
52 188,420,208 1,884,202 190,304,410 190,304,410
53 190,304,410 1,903,044 192,207,454 192,207,454
54 192,207,454 1,922,075 194,129,529 68,516,057 125,613,472
55 125,613,472 1,256,135 126,869,607 126,869,607
56 126,869,607 1,268,696 128,138,303 128,138,303
57 128,138,303 1,281,383 129,419,686 66,612,950 62,806,736
58 62,806,736 628,067 63,434,803 63,434,803
59 63,434,803 634,348 64,069,151 64,069,151
60 64,069,151 640,692 64,709,843 64,709,843 0 19,031,069 251,226,944