1

2009

2
2010

3
2011

4
2012

5
2013

Balance Sheet
Sources of Funds
Equity Share Capital
282.80
282.80
282.80 282.80 282.80
Reserves and Surplus
322.62
666.87 1035.35 1430.86 1856.51
Capital Reserve
38.96
80.53
125.02 172.78 224.18
Contingent Reserve
43.83
90.59
140.65 194.38 252.20
Surplus
239.83
495.75
769.67 1063.70 1380.12
Net Worth
605.42
949.67 1318.15 1713.66 2139.31
Borrowings
Secured Borrowings
151.35
237.42
329.54 428.42 534.83
Unsecured Borrowings
(3.44) 123.13
258.06 402.34 557.07
Total Borrowings
147.91
360.55
587.60 830.75 1091.90
Capital Employed
753.33 1310.23 1905.74 2544.42 3231.21
Application of Funds
Gross Block of Fixed Assets 707.00
778.41
857.03 943.59 1038.89
Less: Accumulated Depreciation24.75
51.99
81.99 115.01 151.37
Net Block of Fixed Assets
682.26
726.42
775.04 828.58 887.52
Investments
70.70
77.84
85.70
94.36 103.89
Current Assets
Inventories
130.45
132.65
146.28 161.05 177.32
Accounts Receivable
52.30
57.58
63.40
69.80
76.85
Cash
93.88
593.21 1139.31 1722.02 2347.33
Total Current Assets
276.63
783.44 1348.99 1952.87 2601.50
Less: Current Liabilities
Creditors
126.04
115.52
129.03 142.03 156.37
Provision for Dividends
146.09
155.89
166.86 179.10 192.75
Provision for Dividend Tax
18.26
19.49
20.86
22.39
24.09
Total Current Liabilities
290.39
290.90
316.75 343.52 373.21
Net Current Assets
(13.76) 492.54 1032.24 1609.36 2228.28
Misc Expenses Not w/o
14.14
13.43
12.76
12.12
11.52
Net Assets
753.33 1310.23 1905.74 2544.42 3231.21
diff
0.00
(0.00)
0.00
(0.00)
0.00
Cost of Goods Sold Statement
Raw Materials Purchased
455.67
360.26
407.86 448.82 494.15
Add: Opening Stock of RM
34.61
29.99
33.25
36.61
Less: Closing Stock of RM
34.61
29.99
33.25
36.61
40.31
Raw Materials Consumed
421.06
364.88
404.60 445.46 490.46
Add: Manufacturing Expenses 169.68
186.82
205.69 226.46 249.33
Add: Depreciation on Factory Assets
14.14
15.57
17.14
18.87
20.78
Add: Other Manufacturing Expenses
56.56
62.27
68.56
75.49
83.11
Factory Cost
661.44
629.54
695.99 766.28 843.68
Add: Opening Work in Progress
26.11
25.88
28.49
31.37
Less: Closing Work in Progress 26.11
25.88
28.49
31.37
34.54
Cost of Production
635.33
629.77
693.38 763.41 840.51
Add: Opening Stock of Finished Goods
69.73
76.77
84.53
93.07
Less: Closing Stock of Finished 69.73
Goods
76.77
84.53
93.07 102.47
Cost of Goods Sold
565.60
622.73
685.62 754.87 831.11
Income Statement
1
2
3
4
5
Revenue
1414.00 1556.81 1714.05 1887.17 2077.78
Less: COGS
565.60
622.73
685.62 754.87 831.11
Gross Profit
848.40
934.09 1028.43 1132.30 1246.67
Less: Selling General and Admin84.84
Exp
93.41
102.84 113.23 124.67
EBITDA
763.56
840.68
925.59 1019.07 1122.00
Less: Depreciation
10.61
11.68
12.86
14.15
15.58
Less: Amortization
0.71
0.67
0.64
0.61
0.58
EBIT
752.25
828.33
912.09 1004.31 1105.84
Add: Other Income
6.36
7.01
7.71
8.49
9.35
Less: Interest on Secured Loans21.19
33.24
46.14
59.98
74.88
Less: Interest on Unsecured Loans
(0.41)
14.78
30.97
48.28
66.85
EBT
737.83
787.32
842.71 904.55 973.47
Less: Provision for Income Tax250.86
267.69
286.52 307.55 330.98
EAT [Net Profit]
486.97
519.63
556.19 597.00 642.49
Less: Provision for Dividends 146.09
155.89
166.86 179.10 192.75

PV
FV
n
20% Equity Share capital as a % of Revenue
i

29%
25% How much of your networth do you intend to borrow?
25% How much of your net worth do you intend to borrow without
giving collateral.

50%

90%

10%

5%

75%

45

###

5%

30 Holding Period for Raw Material

12% Mfg Exp % of Revenue
20% Depreciation on Factory Assets
4% Other Mfg Exp % of Revenue

15 Conversion Time in Days

45 FG Inventory Holding Period

40% COGS as a % of Sales

10% Growth Rate in Revenues

6% Selling General and Admin Expenses as a % of Revenue

15% Depreciation rate on Office Assets
5% Amortization rates in Intangibles
9% Income on Investments
14% Interest Rate on Borrowings
12% Interest Rate on Borrowings
34% Rate of Tax
30% Dividends

Less: Dividend Tax

18.26
Less: Transferred to Capital Reserve
38.96
Less: Transfer to contingent Reserve
43.83
Surplus Transferred to Balance239.83
Sheet
Cash Flow Statement
Cash From Operations
2009
EAT
486.97
Add: Depreciation
24.75
Add: Amortization
Add: Increase in Current Liabilities
Creditors
126.04
Less: Increase in Current Assets
Inventories
130.45
A/R
52.30
Less: Dividend Tax Paid
Cash From Operations
455.01
Misc Exp
14.14
Cash From Continuing Operation
440.87
Cash From Investing Activities
Purchase/Sale of Fixed Assets707.00
Purchase/Sale of Investments 70.70
Cash From Investing Activities 777.70
Cash From Financing Activities
Issue/Buyback of Shares
282.80
Increase/Decrease in Borrowings
147.91
Dividends paid
Cash From Financing Activities430.71
Surplus Cash
93.88
Add: Opening Cash Balance
0.00
Closing Cash Balance
93.88

19.49
41.57
46.77
255.92

20.86
44.49
50.06
273.92

22.39
47.76
53.73
294.02

24.09
51.40
57.82
316.42

13% Dividend Distribution tax rate

8%
9%

2010
519.63
27.24
0.71

2011
556.19
30.00
0.67

2012
597.00
33.03
0.64

2013
642.49
36.36
0.61

(10.52)

13.51

12.99

14.34

2.20
5.28
18.26
511.33

13.63
5.82
19.49
561.43

14.77
6.40
20.86
601.62

16.27
7.05
22.39
648.10

511.33

561.43

601.62

648.10 A INFLOW

71.41
7.14
78.55

78.62
7.86
86.48

86.56
8.66
95.22

95.30
9.53
104.83 B OUTFLOW

0.00
0.00
0.00
0.00
212.64
227.04 243.16 261.14
146.09
155.89 166.86 179.10
66.55
71.15
76.30
82.04 C INFLOW
499.33
546.10 582.71 625.31 A+C-B
93.88
593.21 1139.31 1722.02
593.21 1139.31 1722.02 2347.33

Free Cash Flow to Firm

EBIT(1-t)
496.48
Add: Depreciation and Amortization
25.45
Less: Increase in Non Cash Wc 56.71
Less: Increase in Fixed Assets 707.00
FCFF
(241.77)

546.70
27.92
18.00
71.41
485.21

601.98
30.63
5.94
78.62
548.06

662.85
33.63
8.18
86.56
601.73

729.85
36.94
8.97
95.30
662.52

Free Cash Flows To Equity

Net Income
486.97
Add: Depreciation and Amortization
25.45
Less: Increase in Non Cash wc(1-D/E)
42.85
Less: Increase in Fixed Assets(1-D/E)
534.27
Add: Borrowings
147.91
Issue of Shares
282.80
FCFE
366.02

519.63
27.92
11.16
44.30
212.64
0.00
704.73

556.19
30.63
3.29
43.57
227.04
0.00
767.00

597.00
33.63
4.22
44.60
243.16
0.00
824.98

642.49
36.94
4.39
46.66
261.14
0.00
889.52

Reconciliation between FCFE and Surplus Cash as per cash Flow

Investments
70.70
7.14
7.86
8.66
Misc Exp Not w/o plus ist amortization
14.85
Div Tax
0.00
18.26
19.49
20.86
Div
0.00
146.09
155.89 166.86
W/C funded out of debt
13.85
6.83
2.65
3.97
Additions to FA funded out of debt
172.73
27.11
35.05
41.96
sub total
272.13
205.44
220.93 242.30
FCFE-sub total=Surplus Cash 93.88
499.29
546.07 582.68
0.00
0.04
0.03
0.03
Reconciliation between FCFF and FCFE
FCFF
(241.77) 485.21
548.06 601.73
W/C funded out of debt
13.85
6.83
2.65
3.97
Additions to FA funded out of debt
172.73
27.11
35.05
41.96
Borrowings
147.91
212.64
227.04 243.16
Issue of Shares
282.80
0.00
0.00
0.00
Interest Paid
20.78
48.01
77.10 108.26
Less: Tax shield on Interest
7.06
16.33
26.21
36.81

9.53
22.39
179.10
4.58
48.64
264.24
625.28
0.03
662.52
4.58
48.64
261.14
0.00
141.72
48.19

Less:Post tax other Income

Less: (EBIT(1-t)-NI)2
FCFE

Annual Cash Flow

growth
WACC

4.20
19.03
366.02
0.00

4.62
54.13
704.73
0.00

3,000
2.00%
9.00%

43714

5.09
91.59
767.00
0.00

5.60
131.69
824.98
0.00

6.17
174.73
889.52
0.00

282.80
2139.31
5

(FV/PV)^(1/n)-1=i
49.89%

u intend to borrow?
u intend to borrow without

ses as a % of Revenue

Investments

4%

Revenue

100

150

225

50%

Other Income

0.36

0.54

0.81

9%

2010
Balance Sheet
Sources of Funds
Equity Share Capital
Reserves and Surplus
Capital Reserve
Contingent Reserve
Surplus
Net Worth
Borrowings
Long Term Borrowings
Short Term Borrowings
Total Borrowings
Capital Employed
Application of Funds
Gross Block of Fixed Assets
Less: Accumulated Depreciation
Net Block of Fixed Assets
Investments
Current Assets
Inventories
Accounts Receivable
Cash
Total Current Assets
Less: Current Liabilities
Creditors
Provision for Dividends
Provision for Dividend Tax
Total Current Liabilities
Net Current Assets
Misc Expenses Not w/o
Net Assets
diff
Cost of Goods Sold Statement
Raw Materials Purchased
Add: Opening Stock of RM
Less: Closing Stock of RM
Raw Materials Consumed
Add: Manufacturing Expenses
Add: Depreciation on Factory Assets
Add: Other Manufacturing Expenses
Factory Cost
Add: Opening Work in Progress
Less: Closing Work in Progress
Cost of Production
Add: Opening Stock of Finished Goods
Less: Closing Stock of Finished Goods
Cost of Goods Sold

2011

2012

45.40
57.28
6.92
7.78
42.58
102.68

45.40
118.01
14.25
16.03
87.73
163.41

45.40
182.64
22.05
24.81
135.77
228.04

20%

25.67
7.79
33.45
136.13

40.85
37.05
77.90
241.31

57.01
68.32
125.33
353.37

25%
25%

113.50
22.13
91.37
11.35

124.85
46.48
78.37
12.49

137.34
73.26
64.08
13.73

50%

15.83
20.99
37.67
74.49

15.92
23.09
152.86
191.86

17.54
25.40
277.54
320.47

14.17
25.94
3.24
43.35
31.14
2.27
136.13
-

12.74
27.50
3.44
43.68
148.19
2.27
241.31
-

14.26
29.26
3.66
47.19
273.29
2.27
353.37
-

36.26

22.56
2.75
1.92
23.39
29.96
22.47
9.99
85.81
3.56
3.53
85.85
9.52
10.47
84.90

26.34
1.92
2.15
26.12
32.96
24.72
10.99
94.79
3.53
3.88
94.43
10.47
11.51
93.39

2,011.00
249.70
84.90
164.80
14.98
149.82
1.87
147.95
1.12
5.72
4.45
138.91
47.23
91.68

2,012.00
274.67
93.39
181.28
16.48
164.80
2.06
162.74
1.24
7.98
8.20
147.80
50.25
97.55

2.75
33.51
27.24
20.43
9.08
90.26
3.56
86.70
9.52
77.18

Income Statement
#######
Revenue
227.00
Less: COGS
77.18
Gross Profit
149.82
Less: Selling General and Admin Exp
13.62
EBITDA
136.20
Less: Depreciation
1.70
Less: Amortization
EBIT
134.50
Add: Other Income
1.02
Less: Interest on Long Term Loans
3.59
Less: Interest on Short Term Loans
0.93
EBT
130.99
Less: Provision for Income Tax
44.54
EAT [Net Profit]
86.45

5%

75%

45

60

5%

30
12%
20% 90%
4%

15

45
34%

10%

6%
15% 10%

9%
14%
12%
34%

Less: Provision for Dividends

Less: Dividend Tax
Less: Transferred to Capital Reserve
Less: Transfer to contingent Reserve
Surplus Transferred to Balance Sheet
Cash Flow Statement
Cash From Operations
EAT
Add: Depreciation
Add: Amortization
Add: Increase in Current Liabilities
Creditors
Less: Increase in Current Assets
Inventories
A/R
Less: Dividend Tax Paid
Cash From Operations
Misc Exp
Cash From Continuing Operation A
Cash From Investing Activities
Purchase/Sale of Fixed Assets
Purchase/Sale of Investments
Cash From Investing Activities B
Cash From Financing Activities
Issue/Buyback of Shares
Increase/Decrease in Borrowings
Dividends paid
Cash From Financing Activities C
Surplus Cash A+C-B
Add: Opening Cash Balance
Closing Cash Balance

25.94
3.24
6.92
7.78
42.58

27.50
3.44
7.33
8.25
45.15

29.26
3.66
7.80
8.78
48.04

86.45
22.13

91.68
24.35
-

97.55
26.78
-

14.17

(1.43)

1.53

15.83
20.99

0.09
2.10
3.24
109.17

1.62
2.31
3.44
118.48

109.17

118.48

113.50
11.35
124.85

11.35
1.14
12.49

12.49
1.25
13.73

45.40
33.45

44.44
25.94
18.51
115.19
37.67
152.86

47.43
27.50
19.93
124.68
152.86
277.54

85.93
2.27
83.66

78.85
37.67
37.67

30%
12.50%
8%
9%

2
3
5
6
5
11

EBItems
Items
EBT
Tax
EAT

130.00
3.54
126.46
37.94
88.52