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    FMID Mid Mock Spring 22

    Uploaded by

    Umer Farooq
    The document provides details to prepare a 5-year financial model for A-Zee Pharma, including sales projections with 5-10% annual growth, cost of goods sold split between local and imported materials, expenses, income tax rate, dividend payout ratio, and more. It outlines the company's current financial position and assumptions to estimate key line items in the income statement, balance sheet, and cash flow statement over the planning period.

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    FMID Mid Mock Spring 22

    Uploaded by

    Umer Farooq
    18 views2 pages
    The document provides details to prepare a 5-year financial model for A-Zee Pharma, including sales projections with 5-10% annual growth, cost of goods sold split between local and imported materials, expenses, income tax rate, dividend payout ratio, and more. It outlines the company's current financial position and assumptions to estimate key line items in the income statement, balance sheet, and cash flow statement over the planning period.

    Original Description:

    Financial Modeling Midterm Test

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    The document provides details to prepare a 5-year financial model for A-Zee Pharma, including sales projections with 5-10% annual growth, cost of goods sold split between local and imported materials, expenses, income tax rate, dividend payout ratio, and more. It outlines the company's current financial position and assumptions to estimate key line items in the income statement, balance sheet, and cash flow statement over the planning period.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    18 views2 pages

    FMID Mid Mock Spring 22

    Uploaded by

    Umer Farooq
    The document provides details to prepare a 5-year financial model for A-Zee Pharma, including sales projections with 5-10% annual growth, cost of goods sold split between local and imported materials, expenses, income tax rate, dividend payout ratio, and more. It outlines the company's current financial position and assumptions to estimate key line items in the income statement, balance sheet, and cash flow statement over the planning period.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Prepare a financial model for the next five years to see where the A-Zee pharma would stand.

     Sales
    o The company currently has local gross sales of PKR 15.1bn of which Essential, Non-essential,
    Hardship have the following breakups 20%/ 75% / 5%
    o Volumetric growth is expected to be at least 5% for the first two years and then 4% for the
    remaining 3 years.
    o Export sales currently stand at PKR 1.6bn which shall increase by 10% YoY
    o The last price increase allowed for hardship cases was in the outgoing year FY21
    o Toll manufacturing sales currently stand at PKR 500mn which shall increase by 5% YoY
    o Sales tax on local products sales is at 1%, whereas discounts (net of sales tax) are at 7% and sales
    returns (after discounts) are at the rate of 5%
     Cost of goods sold
    o Currently the cost of imported material is PKR 4.1bn. Split between local and imported APIs is as
    follows:
     Local 40%, where local API cost shall increase by 50% of inflation
     International: 60%, where international API cost shall increase by 1% YoY
     The company’s year end is Fiscal Year (FY)
     The company currently has 200mn shares issued, 140mn free float and 500mn authorized shares
     Depreciation is PKR 600mn to be allocated 90% to COGS, 8% S&D and 2% to Admin
     The company is expected to have PKR 200mn as cash and bank balance at the end of every year
     The company has a long term loan of PKR 8bn as of June-21 payable in equal installments in the next 5
    years, priced at 6M Kibor +100bps . The 6MK is expected to be 100bps above the policy rate for the
    foreseeable future
     The company has short term loans of PKR 5bn constant in the 5 year period priced at 6MK +200bps
     The income tax rate is expected to be 29%, the rate of tax on bank deposits is 15%
     The company plans to have at least PKR 300mn in cash and cash equivalent at the end of every year.
     PKR shall depreciate by 6.7% annually.
     The company wants to have a payout of 40%
     The costs / income required in manufacturing and distribution are as follows:

    Item Costs as of FY21 Increment

    Cost of goods sold


    Salaries & wages PKR 700mn Inflation + 2%
    All other factory overheads PKR 2300mn Inflation

    Selling & Distribution


    Salaries & Benefits PKR 2000mn Inflation + 2%
    Advertising & Promotion 4.0% of sales
    Bonus to sales man 1.0 % of sales
    Others PKR 2300mn by inflation

    Administrative
    Salaries PKR 500mn by inflation
    Others PKR 950mn by inflation
    Other expenses
    Workers’ Profit Participation Fund 4.5% of PBT
    Workers’ Welfare Fund 1.5% of PBT

    Other income
    Rental Income PKR 200mn by 10% p.a
    On bank deposits ??

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