ANNEXURE-I
AWAIS PACKAGES (PVT) LTD
DETAILS REGARDING COST OF THE PROJECT
(RUPEES) (Rs. in ,000)
1. Land
Land measuring 1 Acre
Land Development, Legal Expenses
2. Building & Civil Works
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
Production hall
Finished goods hall
Raw material store
Office Building
Future Expansion
Boundary wall
& Misc: Civil Works
7,500,000
525,000
Area
(Sq.Ft)
10,000
5,000
5,000
2,500
1,500
1,000
1,000
26,000
Rate
(Sq.Ft)
1,000
1,200
1,200
3,000
1,000
8,025
Cost
(Rs)
10,000,000
6,000,000
6,000,000
7,500,000
1,500,000
500,000
485,000
31,985,000
31,985
3. Plant & Equipments
(i)
Main Plant
(ii)
Electric Installations & Fittings
126,000,000
6,300,000
132,300,000
132,300
4. Furniture & Fixtures
(I)
(ii)
(iii)
(iv)
(v)
(vi)
Chairs
Tables
Cabinets
Benches
Fans
Office Equipments
lumpsum
75,000
80,000
190,000
300,000
645,000
645
(RUPEES) (Rs. in ,000)
5. Preliminary Expenses
i)
ii)
These are estimated at 3% of the cost of fixed assets
excluding land
Interest during construction
6. Contingencies
497,000
497,000
497
1,649,300
1,649
@ 1% of total
TOTAL FIXED COST:
175,101
7. Net Initial Working Capital
(Rs in 000)
(i) Raw materials stock (
(ii) Utilities (one month)
(iii) Salaries & Wages (one month)
(iv) Stores & Spares (three months)
(v) Cash in Hand
(vi) Finished Goods Inventory ( @
of cost of goods available for sale)
TOTAL WORKING CAPITAL
Less: Bank Borrowing @
Raw Material and
Finished Stock.
NET INITIAL WORKING CAPITAL:
10
Days)
5.00%
2,284
37
145
70
200
4,707
2,953
10,396
70.00%
of
5,707
4,689
TOTAL COST OF PROJECT:
4,689
179,790
FINANCING PLAN
Equity
Paid Up Capital
71,916
Debt
Long Term Loan
General Term Finance
107,874
Total Debt
107,874
TOTAL CAPITALIZATION:
DEBT/EQUITY RATIO:
179,790
60
40
ANNEXURE VI
AWAIS PACKAGES (PVT) LTD
ASSUMPTIONS UNDERLYING INCOME FORECAST
1.
INTRODUCTION
1.1 The plant at 100% efficiency will produce the following products as given below
1
2
3
4
5
NO. OF OPERATING
DAYS PER ANNUM
PRODUCTS
Specification
Cartons
5
3
5
5
5
Ghee Ind
Med. . Soap, Mat
Cig. & Biscuit
Textile Ind
Dry Fruits
1,580,000
1,500,000
2,040,000
1,550,000
1,280,000
20
19
26
19
16
7,950,000
100
Ply Ca rtons
Ply Ca rtons
Ply Ca rtons
Ply Ca rtons
Ply Ca rtons
TOTAL
% age
NO. OF
SHIFTS
2
2
2
2
2
300
1.2 It is assumed that the plant would operate at the following efficiency levels during the projected
period of operations:
YEAR
% CAPACITY UTILIZATION
2,023
2,024
2,025
2,026
2,027
1.3
60.00%
70.00%
80.00%
90.00%
100.00%
Based on the above, following is the year-wise detail of production.
Packets
YEAR
2,023
Efficiency
1
2
3
4
5
5
3
5
5
5
Ply Ca rtons
Ply Ca rtons
Ply Ca rtons
Ply Ca rtons
Ply Ca rtons
TOTAL
2,024
60%
Ghee Ind
Med. . Soap, Mat
Cig. & Biscuit
Textile Ind
Dry Fruits
70%
2,025
80%
2,026
2,027
90%
100%
948,000
900,000
1,224,000
930,000
768,000
1,106,000
1,050,000
1,428,000
1,085,000
896,000
1,264,000
1,200,000
1,632,000
1,240,000
1,024,000
1,422,000
1,350,000
1,836,000
1,395,000
1,152,000
1,580,000
1,500,000
2,040,000
1,550,000
1,280,000
4,770,000
5,565,000
6,360,000
7,155,000
7,950,000
1.4
Assumed Finished Goods inventory level is
5.00%
After adjustment of Finished Goods Inventory, the following will be the goods available for sales.
Packets
YEAR
1
2
3
4
5
2.
5
3
5
5
5
Ply Ca rtons
Ply Ca rtons
Ply Ca rtons
Ply Ca rtons
Ply Ca rtons
2,023
Ghee Ind
Med. . Soap, Mat
Cig. & Biscuit
Textile Ind
Dry Fruits
900,600
855,000
1,162,800
883,500
729,600
2,024
1,098,100
1,042,500
1,417,800
1,077,250
889,600
2,025
1,256,100
1,192,500
1,621,800
1,232,250
1,017,600
2,026
2,027
1,414,100
1,342,500
1,825,800
1,387,250
1,145,600
1,572,100
1,492,500
2,029,800
1,542,250
1,273,600
SALES REVENUE
Ex-factory prices excluding the effects of sale tax of product is given below:
PRICE ESC BY
5.00%
(Rs.)
PRICE PER
Packets
PRODUCT
1
2
3
4
5
2.1
5
3
5
5
5
Ply Ca rtons
Ply Ca rtons
Ply Ca rtons
Ply Ca rtons
Ply Ca rtons
2023
Ghee Ind
Med. . Soap, Mat
Cig. & Biscuit
Textile Ind
Dry Fruits
18.00
12.00
35.00
70.00
20.00
2024
18.90
12.60
36.75
73.50
21.00
2025
19.85
13.23
38.59
77.18
22.05
2026
20.84
13.89
40.52
81.03
23.15
2027
21.88
14.59
42.54
85.09
24.31
Based on the above, the following would be the Sales revenues for the projected period:
(Rs. in ,000)
YEAR
1
2
3
4
5
5
3
5
5
5
Ply Ca rtons
Ply Ca rtons
Ply Ca rtons
Ply Ca rtons
Ply Ca rtons
Total Revenue
2,023
Ghee Ind
Med. . Soap, Mat
Cig. & Biscuit
Textile Ind
Dry Fruits
2,024
2,025
2,026
2,027
16,210
10,260
40,698
61,845
14,592
20,754
13,135
52,104
79,177
18,681
24,927
15,776
62,581
95,098
22,438
29,465
18,649
73,975
112,414
26,523
34,396
21,769
86,353
131,223
30,961
143,605
183,851
220,820
261,026
304,702
3.
RAW MATERIALS
The raw material would be required to produce the previously mentioned products.
DESCRIPTION
3.1 1
5 Ply Ca rtons
QTY. REQ.
(Kgs)
3 Ply Ca rtons
4
5
5 Ply Ca rtons
PRICE
ESCLTD
BY
5%
275
225
150
Med. . Soap, Mat
Floating paper
Liner
Silicate
Misc; chemicals
Cost of Raw material per carton
3
Produce
Ghee Ind
Floating paper
Liner
Silicate
Misc; chemicals
Cost of Raw material per carton
2
To
Price
(Rs. / Kgs)
Incl Transp:
11
15
6
3
3.83
0.83
0.6
8
11
15
6
1.38
3.75
0.5
0.3
5.93
Kgs
275
225
150
Cig. & Biscuit
Kgs
Floating paper
Liner
Silicate
Misc; chemicals
Cost of Raw material per carton
640
460
290
11
15
6
7.04
6.9
1.6
0.9
16.44
5 Ply Ca rtons
Textile Ind
Floating paper
Liner
Silicate
Misc; chemicals
Cost of Raw material per carton
141,577 Kgs
1,200
850
533
11
30
6
13.2
25.5
2.93
1.8
43.43
5 Ply Ca rtons
Dry Fruits
Floating paper
Liner
Silicate
Misc; chemicals
Cost of Raw material per carton
Kgs
331
165
130
11
42
6
3.64
6.93
0.72
0.6
11.89
UNIT PRODUCTION FOR THE YEARS
(YEARS OF OPERATION)
1
2
3
4
5
DESCRIPTION
Efficiency
FIRST
50%
5
3
5
5
5
840,000
800,000
1,120,000
400,000
840,000
1,008,000
960,000
1,344,000
480,000
1,008,000
1,176,000
1,120,000
1,568,000
560,000
1,176,000
1,344,000
1,280,000
1,792,000
640,000
1,344,000
1,512,000
1,440,000
2,016,000
720,000
1,512,000
4,000,000
4,800,000
5,600,000
6,400,000
7,200,000
Ply Ca rtons ( Ghee ind.)
Ply Ca rtons (Med. Soap, Match)
Ply Ca rtons ( Cig. & Buscuits )
Ply Ca rtons ( Textile)
Ply Ca rtons ( Dry fruits)
TOTAL
SECOND
60%
THIRD
70%
FOURTH
80%
FIFTH
90%
PROJECTED COST OF LOCAL RAW MATERIAL
Estimated at
5.0% increase per annum
(YEARS OF OPERATION)
FIRST
50%
1
2
3
4
5
5
3
5
5
5
Ply Ca rtons ( Ghee ind.)
Ply Ca rtons (Med. Soap, Match)
Ply Ca rtons ( Cig. & Buscuits )
Ply Ca rtons ( Textile)
Ply Ca rtons ( Dry fruits)
9.40
7.10
19.73
52.12
14.27
SECOND
60%
9.87
7.46
20.72
54.73
14.98
THIRD
70%
10.36
7.83
21.75
57.46
15.73
FOURTH
80%
10.88
8.22
22.84
60.34
16.52
FIFTH
90%
11.43
8.63
23.98
63.35
17.35
TOTAL COST OF RAW MATERIAL
DESCRIPTION
Efficiency
1
2
3
4
5
5
3
5
5
5
Ply Ca rtons ( Ghee ind.)
Ply Ca rtons (Med. Soap, Match)
Ply Ca rtons ( Cig. & Buscuits )
Ply Ca rtons ( Textile)
Ply Ca rtons ( Dry fruits)
TOTAL
FIRST
50%
5
3
5
5
5
THIRD
70%
FOURTH
80%
FIFTH
90%
7896
5680
22098
20848
11987
9949
7157
27843
26268
15103
12187
8767
34108
32179
18502
14625
10520
40929
38615
22202
17276
12427
48348
45614
26226
68508
86321
105743
126891
149890
AT 100% EFFICIENCY.
1
2
3
4
5
SECOND
60%
Total cost
(Rs. in ,000)
per KG
Ply Ca rtons ( Ghee ind.)
Ply Ca rtons (Med. Soap, Match)
Ply Ca rtons ( Cig. & Buscuits )
Ply Ca rtons ( Textile)
Ply Ca rtons ( Dry fruits)
9.40
7.10
19.73
52.12
14.27
19,195
13,808
53,720
50,682
29,140
166,545
Net Cost Raw Material
68,508
86,321
105,743
126,891
149,890
4. LABOR COSTS
Direct Labor cost for the project is calculated as below:
Designation
No.
Production Manager
Foreman
Supervisor
Machine operators
Assistant foreman
Electricians
skilled workers
Unskilled workers
1
1
1
2
2
1
5
10
Total
23
Basic pay
P. M. (Rs)
Annual
Payroll (Rs)
50,000
35,000
35,000
30,000
25,000
25,000
22,000
20,000
600,000
420,000
420,000
720,000
600,000
300,000
1,320,000
2,400,000
6,780,000
The basic salaries are assumed to increase @
per annum and fringe benefits are calculated @
of current years basic salaries. Based on this, total labor cost for the
projected period is tabulated below:
5.00%
30.00%
(Rs. in ,000)
YEAR
2023
2024
2025
2026
2027
Basic Salary
Fringe Benefits
6,780
2,034
7,119
2,136
7,475
2,243
7,849
2,355
8,241
2,472
Total :
8,814
9,255
9,718
10,204
10,713
5. UTILITIES
5.1
Power
Total connected load (KW).
Maximum demand (kw)
500
500
Fixed charges (Rs.) = 250 * 151 * 12
Variable Charges (Rs). =
KW X 157 X 12 =
KW X 20 X 8X 300 =
906,000
24,000,000
Based on the above, total electricity cost is tabulated below:
(Rs. in ,000)
YEAR
5.2
2,023
2,024
2,025
2,026
2,027
Fixed Charges
Variable Charges
906
14,400
906
16,800
906
19,200
906
21,600
906
24,000
Total Charges
15,306
17,706
20,106
22,506
24,906
Water
Water requirement of the project would be met through own arrangements. A lumpsum
amount of Rs. 50,000/- being assumed as water charges per annum.
5.3 Oil, Gas and Lubricants
Lubricants and other chemicals for the project shall be locally purchased. An estimate of Rs. 15,0000/- per month
at 100% effeciency is estimated.
Requirement at 100% capacity
Rs
DESCRIPTION
Efficiency
Lub. Charges
180,000
50%
60%
70%
80%
90%
90
108
126
144
162
Based on the above, total cost of utilities for the project is tabulated as under:
(Rs. in ,000)
YEAR
2,023
2,024
2,025
2,026
2,027
Power
Water
Lub. Charges
15,306
50
90
17,706
53
108
20,106
55
126
22,506
58
144
24,906
61
162
Total (5.1+5.2)
15,446
17,867
20,287
22,708
25,129
6. MANUFACTURING OVERHEADS
6.1
Repairs & Maintenance
Costs of repairs and maintenance are assumed at the rate of
2.00%
of the cost of fixed assets excluding land with
increase per annum as under.
Year
Cost
6.2
2,023
2,024
3,342
3,509
5.00%
(Rs. in ,000)
2,025
2,026
3,685
3,869
2,027
4,062
Stores & Spares
The cost of Stores & Spares are assumed at the rate of
1.50%
cost excluding land with
5.00%
increase annually as under.
(Rs. in ,000)
Year
Cost
6.3
2,023
2,024
2,506
2,631
2,025
2,763
2,026
2,901
2,027
3,046
Insurance
The cost of Insurance, Stores & Spares are assumed at
cost excluding land with
5.00%
Year
Cost
2,023
3,342
2.00%
of fixed
increase annually as under.
(Rs. in ,000)
2,024
3,509
2,025
3,685
2,026
3,869
2,027
4,062
Based on the above (6.1..6.3), total cost of manufacturing over- heads for the projected
period would be as under:
(Rs. in ,000)
Year
2,023
2,024
2,025
2,026
2,027
Repairs & Maintenance:
Stores & Spares
Insurance
3,342
2,506
3,342
3,509
2,631
3,509
3,685
2,763
3,685
3,869
2,901
3,869
4,062
3,046
4,062
Total :
9,190
9,650
10,132
10,639
11,171
7. OPERATING EXPENSES
7.1
Selling & Distribution Expenses
These expenses are assumed at the rate of
revenue as under: Commsioan
2.00%
of sales
0.5%
(Rs. in ,000)
Year
7.2
2,023
2,024
2,025
2,026
2,027
G. selling Expenses
commission
2,872
718
3,677
919
4,416
1,104
5,221
1,305
6,094
1,524
Total
3,590
4,596
5,521
6,526
7,618
General Expenses
These expenses are assumed at Rs.
240,000
lumpsum basis for the projected years of operations as under:
per annum on a
(Rs. in ,000)
Year
Expenses
2,023
2,024
240
252
2,025
265
2,026
278
2,027
292
7.3
Administrative Expenses
Administrative expenses are calculated as under:
Designation
No.
General Manager
Commercial Manager
Clerk / Typist
Peon
Chowkidars
Sweeper
1
1
1
2
3
2
Total
Basic pay
P.M. (Rs)
Annual
Payroll (Rs)
75,000
50,000
25,000
20,000
20,000
18,000
900,000
600,000
300,000
480,000
720,000
24,000
10
3,024,000
Basic salaries are assumed to increase at rate of
per annum and fringe benefits are calculated @
of current year's basic salaries as under:
5.00%
30.00%
(Rs. in ,000)
Year
2,023
2,024
2,025
2,026
2,027
Basic Salaries
Fringe Benefits
3,024
907
3,175
953
3,334
1,000
3,501
1,050
3,676
1,103
Total:
3,931
4,128
4,334
4,551
4,779
Based on the above (7.1-7.3), total cost of operating expenses
are tabulated below:
(Rs. in ,000)
Year
2,023
2,024
2,025
2,026
2,027
Selling & Dist.
General Expenses
Admin: Expenses
3,590
240
3,931
4,596
252
4,128
5,521
265
4,334
6,526
278
4,551
7,618
292
4,779
7,761
8,976
10,119
11,354
12,688
ANNEXURE-VII
AWAIS PACKAGES (PVT) LTD
PROJECT COST & MEANS OF FINANCE
(Rs. in ,000)
Cost
Land & Development
Building & Civil Works
Machinery & Equipment
Furniture & Fixture
Preliminary expenses
Contingencies
TOTAL
8,025
31,985
132,300
645
497
1,649
8,025
31,985
132,300
645
497
1,649
Sub Total:
Working Capital
175,101
4,689
175,101
4,689
Total Project Cost
179,790
179,790
1%
Means of Finance
Debt
Long Term Loan
General Term Finance
107,874
107,874
Equity
Sponsors Equity
71,916
71,916
TOTAL FINANCING
179,790
WORKING CAPITAL
No.of
days/(%)
Raw Material
Finished goods
Stores & spares
Utilities
Salaries & Wages
Cash in hand
Total Working Capital
Less: Bank Borrowing @
70% Raw Material and
Finished Stock.
Net Initial Working Capital.
10
5.00%
30
25
25
2,023
2,024
Rs.in '000
2,025
2,026
2,027
2,284
2,953
251
37
9,142
200
2,877
7,198
263
1,488
9,599
213
3,525
8,405
276
1,690
10,079
223
4,230
9,693
290
1,892
10,583
233
4,996
11,081
305
2,094
11,111
243
14,866
21,638
24,198
26,921
29,831
5,707
7,053
8,351
9,746
11,254
9,159
14,586
15,847
17,175
18,576
ANNEXURE-VIII
AWAIS PACKAGES (PVT) LTD
DEPRECIATION SCHEDULE
(Rs. in ,000)
New
Total
Building & Civil Works
Contingencies
31,985
160
32,145
Machinery & Equipment
Contingencies
132,300
662
132,961
645
3
648
Furniture & Fixture
Contingencies
CALCULATION OF DEPRECIATION
Initial
Cost
Building & Civil Works
Machinery & Equipment
Furniture & Fixture
32,145
132,961
648
Total
165,754
@ of
Total
Depreciation. Depreciation.
5%
10%
20%
1,607
13,296
129
15,032
ANNEXURE-IX
AWAIS PACKAGES (PVT) LTD
CALCULATIONS OF FINANCIAL EXPENSES
Details of Borrowing:
(Rs. in `000')
Principal
Long Term Loan
Short Term Loan
Interest %
107,874
5,707
Six Monthly Installments
Long Term Loan
General Term Finance
8%
10%
10,787
One year is the grace period
Interest first premium would be as under:
Long Term Loan
4,315
Long Term Loan
Amount Outstanding
Years
Con Yr
Ist Yr
2nd Yr
3rd Yr
4th Yr
5th Yr
6th Yr
Beg:of
the yr
107,874
107,874
86,299
64,724
43,150
21,575
Interest
Mid
yr
107,874
97,087
75,512
53,937
32,362
10,787
End of
the yr
1st
half
107,874
107,874
86,299
64,724
43,150
21575
0
4,315
4,315
3,452
2,589
1,726
863
2nd
half
4,315
4,315
3,883
3,020
2,157
1,294
431
Total
4,315
8,630
8,198
6,472
4,746
3,020
1,294
SHORT TERM LOAN
2,023
Amount Outstanding
2,024
2,025
2,026
2,027
5,707
7,053
8,351
9,746
11,254
571
705
835
975
1,125
Interest
FINANCIAL EXPENSES
Interest
2,023
2,024
2,025
2,026
2,027
Long Term Loan
General Term Finance
Short Term Loan
8,630
8,198
6,472
4,746
3,020
571
705
835
975
1,125
Total Financial Expenses.
9,201
8,904
7,308
5,721
4,146
ANNEXURE-IV
AWAIS PACKAGES (PVT) LTD
ESTIMATED INCOME STATEMENT
(Rs. in 000)
Years
Efficiency (%)
2023
2024
60%
70%
2025
80%
2026
90%
2027
100%
SALES REVENUE (Net)
143,605
183,851
220,820
261,026
304,702
Cost of Goods Sold
111,141
136,774
159,704
184,185
210,546
32,464
47,077
61,116
76,841
94,156
3,931
4,128
4,334
4,551
4,779
3,830
4,848
5,785
6,803
7,909
7,761
8,976
10,119
11,354
12,688
24,703
38,101
50,997
65,487
81,468
9,201
8,904
7,308
5,721
4,146
15,502
29,197
43,689
59,765
77,322
775
1,460
2,184
2,988
3,866
PRE-TAX PROFIT
LESS: PROVISION FOR TAX
14,727
4,418
27,737
8,321
41,505
12,451
56,777
17,033
73,456
22,037
AFTER TAX PROFIT
Dividends
10,309
19,416
3,596
29,053
7,192
39,744
10,787
51,419
14,383
RETAINED EARNINGS
10,309
26,129
47,991
76,948
113,984
RATIOS
Gross Profit/Sales
Operation: Profit/Sales
Pre-Tax Profit/Sales
Dividends
22.61%
17.20%
10.26%
25.61%
20.72%
15.09%
5%
27.68%
23.09%
18.80%
10%
29.44%
25.09%
21.75%
15%
GROSS PROFIT
OPERATING EXPENSES
Salaries and Wages
Selling, General &
Admin. Expenses
Total Operating Exp.
OPERATING INCOME
Financial Expenses.
PROFIT BEFORE TAXES
& WORKERS FUNDS
WORKERS PARTICIPATION &
WELFARE FUND @ 5%
30.90%
26.74%
24.11%
20%
ANNEXURE-V
AWAIS PACKAGES (PVT) LTD
COST OF GOODS SOLD STATEMENT
(Rs. in `000')
Year of Operation
Capacity Utilization
Raw Material Consumed
Factory Wages & Salaries
2,023
60%
2,024
70%
2,025
80%
2,026
90%
2,027
100%
68,508
8,814
86,321
9,255
105,743
9,718
126,891
10,204
149,890
10,713
Utilities
Spares & Stores
Repairs & Maintenance
Insurance
Depreciation
15,446
2,506
3,342
3,342
15,032
17,867
2,631
3,509
3,509
15,032
20,287
2,763
3,685
3,685
15,032
22,708
2,901
3,869
3,869
15,032
25,129
3,046
4,062
4,062
15,032
T.Factory Overheads
39,668
42,548
45,451
48,378
51,331
116,990
138,124
160,912
185,474
211,935
5,849
7,198
8,405
9,693
116,990
143,973
168,110
193,879
221,628
5,849
7,198
8,405
9,693
11,081
111,141
136,774
159,704
184,185
210,546
Factory Overheads
Cost of goods manufactured during the year
Add: Opening stock of
Finished goods
Total goods available
for sales
Less: Closing stock of
Finished goods
Cost of goods sold
ANNEXURE-X
AWAIS PACKAGES (PVT) LTD
ESTIMATED BALANCE SHEET
(Rs. in 000)
As of 31st
Const.
2023
2024
2025
2026
2027
ASSETS
Current Assets
Cash & Bank Balance
Invent:Raw Material
Finished Goods
Stores & Spares
4,689
-
27,353
2,284
5,849
251
36,021
2,877
7,198
263
50,771
3,525
8,405
276
72,573
4,230
9,693
290
102,405
4,996
11,081
305
Total Current Assets
4,689
35,737
46,360
62,977
86,786
118,787
Fixed Assets at Cost
Less:Acc:Depreciation
Net Fixed Assets
175,101
175,101
175,101
15,032
160,069
175,101
30,064
145,037
175,101
45,096
130,005
175,101
60,128
114,973
175,101
75,160
99,941
TOTAL ASSETS
179,790
195,805
191,397
192,982
201,759
218,728
5,707
7,053
8,351
9,746
11,254
Fixed Assets
LIABILITIES AND EQUITY
Current Liabilities
Bank Borrowing
Long Term Liabilities
Long Term Loan
General Term Finance
107,874
-
107,874
-
86,299
-
64,724
-
43,150
-
21,575
-
Total L.T/S.T. Debts
107,874
113,581
93,352
73,075
52,895
32,829
71,916
71,916
71,916
10,309
82,224
71,916
26,129
98,045
71,916
47,991
119,907
71,916
76,948
148,864
71,916
113,984
185,900
179,790
195,805
191,397
192,982
201,759
218,728
EQUITY
Paid up Capital
Retained Earnings
Total Equity
TOTAL LIABILITIES
AND EQUITY
ANNEXURE - XI
AWAIS PACKAGES (PVT) LTD
ESTIMATED CASH FLOW STATEMENT
(Rs. in 000)
As of
Construction.
Period
2023
2024
2025
2026
2027
SOURCES OF FUNDS
Operating Profit
Add:Back Depreciation
Total Funds from
Operations
Long Term Loan
General Term Finance
Paid Up Capital
Increase in
Bank Borrowings
107,874
Total Sources of Funds
179,790
24,703
15,032
38,101
15,032
50,997
15,032
65,487
15,032
81,468
15,032
39,735
53,133
66,029
80,519
96,500
5,707
1,346
1,298
1,395
1,508
45,442
54,478
67,327
81,914
98,008
21,575
21,575
21,575
21,575
775
8,904
8,321
3,596
1,460
7,308
12,451
7,192
2,184
5,721
17,033
10,787
2,988
4,146
22,037
14,383
3,866
8,383
1,955
1,867
2,007
2,170
71,916
APPLICATION OF FUNDS
Invest in Fix:Assets
Long Term Loan
General Term Finance
Financial Expenses
Tax
Dividends
Workers participation: Fund
Increase in Current
Ass:(Other than Cash)
175,101
Application of Funds
175,101
22,777
45,810
52,577
60,112
68,176
Cash Surp:/(Deficit)
Cash-Opening Balance
4,689
-
22,665
4,689
8,668
27,353
14,750
36,021
21,802
50,771
29,832
72,573
Cash-Closing Balance
4,689
27,353
36,021
50,771
72,573
102,405
9,201
4,418
-
ANNEXURE-XII
AWAIS PACKAGES (PVT) LTD
COMMERCIAL BREAK EVEN ANALYSIS
(2nd YEAR)
(Rs. 000)
COST
ITEM
FIXED
VARIABLE
Raw Material
Factory Wages
Utilities
Depreciation
Mfg. Overheads
Operating Exp.
Financial Exp.
4,128
906
15,032
4,848
8,904
86,321
9,255
16,853
9,650
-
TOTAL:
33,818
122,078
Plant Efficiency:
70%
Sales Revenue:
183,851
Fixed Cost
BE =
1- (variable cost/Total sales)
BE ( Rs in 000)=
100,650
ANNEXURE-XIII
AWAIS PACKAGES (PVT) LTD
CASH BREAK-EVEN ANALYSIS
(2ND YEAR)
(Rs. 000)
COST
ITEM
FIXED
Raw Material
Factory Wages
Utilities
Mfg. Overheads
Operating Exp.
Financial Exp.
(Exclud. Amortazation.)
Principal Repayment
8,904
21,575
TOTAL:
40,361
4,128
906
4,848
Plant Efficiency:
70%
Sales Revenue:
183,851
Cash Break Even =
BE in %
Fixed Cost
----------------- --------- X Efficiency
Sales Variable Cost
45.86%
VARIABLE
86,321
9,255
16,800
9,650
-
122,025
ANNEXURE -XIV
AWAIS PACKAGES (PVT) LTD
INTERNAL FINANCIAL RATE OF RETURN (IFRR)
(Rs. in 000)
years
Initial
Outlay
1
2
3
4
5
6
7
8
9
10
Operating
Profit
Deprecaition.
Tax
Payable
Workers
Fund
179,790
24,703
38,101
50,997
65,487
81,468
85,541
89,818
94,309
99,025
103,976
645
1,252
I.F.R.R.
15,032
15,032
15,032
15,032
15,032
15,032
15,032
15,032
15,032
15,032
4,418
8,321
12,451
17,033
22,037
35,927
37,724
39,610
41,590
43,670
775
1,460
2,184
2,988
3,866
3,866
3,866
3,866
3,866
3,866
NPV @ LDR ( HDR - LDR )
LDR+---------------------------------NPV @ LDR +NPV @ HDR
=
21
I.F.R.R.
=
36,138
26 %
7
47,204
Net Cash
Outflow
(179,790)
34,542
43,352
51,393
60,497
70,597
60,780
63,260
65,865
68,600
71,472
Discount
21%
Rate (%)
28%
(179,790)
28,547
29,610
29,010
28,222
27,218
19,366
16,658
14,334
12,338
10,624
(179,790)
26,986
26,460
24,506
22,537
20,546
13,820
11,237
9,141
7,438
6,054
215,928
168,724
36,138
(11,066)
ANNEXURE -XV
NET PRESENT VALUE ANALYSIS (NPV)
(Rs. in 000)
years
1
2
3
4
5
6
7
8
9
10
Initial
Outlay
Operating
Profit
Deprecaition.
Tax
Payable
Workers
Fund
(179,790)
645
1,252
24,703
38,101
50,997
65,487
81,468
85,541
89,818
94,309
99,025
103,976
15,032
15,032
15,032
15,032
15,032
15,032
15,032
15,032
15,032
15,032
4,418
8,321
12,451
17,033
22,037
35,927
37,724
39,610
41,590
43,670
775
1,460
2,184
2,988
3,866
4,277
4,491
4,715
4,951
5,199
Net Cash
Outflow
(179,790)
34,542
43,352
51,393
60,497
70,597
60,780
63,260
65,865
68,600
71,472
Discount
21%
(179,790)
28,547
29,610
29,010
28,222
27,218
19,366
16,658
14,334
12,338
10,624
215,928
36,138
NET PRESENT VALUE ANALYSIS=
36,138
ANNEXURE -XVI
AVERAGE WEIGHTED COST OF FUNDS
(Rs. in 000)
Type of Financing
Amount
Before Tax
@
After Tax
@
Amount
Amount
Long Term Loan
107,874
8.00%
8,630
4.0%
4,315
Paid up Capital
71,916
20.00%
14,383
20.0%
14,383
TOTAL
179,790
23,013
18,698
1. Cost of Fund Before Tax
23,013
---------x
179,790
100
=
12.80%
2. Cost of Funds After Tax
18,698
-------x
179,790
100
=
10.40%
b) Financial Position
The projected balance sheet is annexed at X and the same is summarized hereunder ;
As on 30th
Jul-05
Jul-05
Jul-05
Jul-05
Jul-05
Current Assets
Less Current Liabs.
35,737
5,707
46,360
7,053
62,977
8,351
86,786
9,746
118,787
11,254
Net Working Capital
30,030
39,307
54,626
77,040
107,533
160,069
145,037
130,005
114,973
99,941
190,099
184,344
184,631
192,013
207,474
107,874
86,299
64,724
43,150
21,575
107,874
86,299
64,724
43,150
21,575
Owners Capital
Retained Earnings
71,916
10,309
71,916
26,129
71,916
47,991
71,916
76,948
71,916
113,984
Total Equity
82,225
98,045
119,907
148,864
185,900
190,099
184,344
184,631
192,013
207,474
Add Intangibles
Net Fixed Assets
Net Assets
Financed through
Debt
Long Term Loan
General Term Finance
Total Debt
Total Financing
RATIOS
Current Ratio
%age of Debt :Equity
6.26
56.75%
6.57
46.81%
7.54
35.06%
8.90
22.47%
10.55
10.40%
Cost of the Project,Means of Finance &
Debt equity Ratio
Cost of the project
Cost of the proposed project will be as under:
Fixed Assets
(Rs. in `000')
Land (including development charges)
Building
Machinery (installed)
Furniture & Fixture
Preliminary expenses
Contingencies
8,025
31,985
132,300
645
497
1,649
Total fixed cost
Working capital
175,101
4,689
Total cost of the project
179,790
Means of Finance:
Long Term Loan
107,874
Paid Up Capital
71,916
179,790
The owner own investment will be Rs.
company.
71,916 millions which be raised through paid up capital of the
Debt Equity Ratio:
The debt equity ratio in the over all cost of the project works out to
60
40
COST OF PROJECT AND MEANS OF FINANCE
(RS.IN '000)
DESCRIPTION
COST ALREADY
COST TO BE
MET BY THE
MET BY THE
SPONSORS
SPONSORS
Land
BANKS
LOANS
8,025
Building
31,985
Machinery
107,874
Machinery Installation
Furniture Fixture
Preliminary Expenses
Contingencies
Total Fixed Cost
75
-
8,100
24,426
645
-
645
422
-
497
1,649
59,128
107,874
63,816
107,874
EQUITY
Sponsors Contribution
71,916
DEBT
Long Term Loan
107,874
107,874
TOTAL CAPITALIZATION:
179,790
60
175,101
4,689
FINANCING PLAN
DEBT/EQUITY: ( % )
107,874
-
4,689
8,100
31,985
24,426
1,649
Working Capital
Total Cost Of The
Project
8,025
-
-
TOTAL
40
179,790
B
Profitability
Projected earning of the project are given in Annexure IV. A summary of earnings forecast is given
below:
Years
2,023
Sales
Gross profit
Net operating profit
Pre-tax profit
143,605
32,464
24,703
14,727
2,024
183,851
47,077
38,101
27,737
2,025
220,820
61,116
50,997
41,505
2,026
261,026
76,841
65,487
56,777
2,027
304,702
94,156
81,468
73,456
Selected Accounting Ratios
(%)
Gross profit to sales
Oper: profit to sales
Pre-tax profit to sales
Pre-tax profit to
capital
Dividends to Capital
22.61%
17.20%
10.26%
20.48%
25.61%
20.72%
15.09%
38.57%
27.68%
23.09%
18.80%
57.71%
29.44%
25.09%
21.75%
78.95%
30.90%
26.74%
24.11%
102.14%
5.00%
10.00%
15.00%
20.00%
Returns on owner equity
Years of operation
Return (%)
2,023
2,024
2,025
2,026
2,027
20.48%
38.57%
57.71%
78.95%
102.14%
Debt service Coverage in 3rd year at capacity utilization
80%
Net profit
Add: interest
41,505
7,308
Income available for meeting liabilities
48,812
Installment of long term loan
Interest
21,575
7,308
28,882
Debt Service Coverage -
1.69
times
Break even Point:
The project will break even at a sales volume of Rs.
70%
of capacity utilization as per details given Annexure XII.
100,649 000 at
Cash Flow
The cash flow statement for the first five years of operations of
AWAIS PACKAGES (PVT) LTD
During its operation the firm will be able to generate sufficient funds and will easily repay short term
loans and also the installments on long term loan along with interest thereon.
There are also sufficient funds at period ends, for meeting requir- ments of extensions and
replacements etc. At the end of its fifth
year of operation the company will have Rs.
102.4 millions as cash.
Conclusion
Considering the various aspects i.e. financial and technical, it is
concluded that the project of
AWAIS PACKAGES (PVT) LTD
is feasible and justified.
A
AWAIS PACKAGES (PVT) LTD
SUMMARY OF THE PROJECT
1
Name of the project
AWAIS PACKAGES (PVT) LTD
2
Location of the Project.
Hattar Special Economic Zone
3
Type of Industry.
Printing, Packaging and Labels Industry
4
New/Bal/Mod/Rep/Exp
New
5
Brief description of the
project.
The project aims at establishment of Printing and Packaging Industry
at Hattar Special Economic Zone. The project will produce
4,770,000
Packets in first year.
6
Estimated cost of the project.
(Rs. in 000)
7
Total Fixed Cost
Working Capital
175,101
4,689
Total cost of the project
179,790
Proposed Financial Plan.
Long Term Loan
107,874
Paid Up Capital
71,916
Total Financing
179,790
Estimated Future Operating Results
Years
1st yr
2nd yr
3rd yr
4th yr
5th yr
Sales
Gross profit
Net operating profit
Pre-tax profit
143,605
32,464
24,703
14,727
183,851
47,077
38,101
27,737
220,820
61,116
50,997
41,505
261,026
76,841
65,487
56,777
304,702
94,156
81,468
73,456
Selected Accoun: Ratios
(%)
Gross profit to sales
Oper: profit to sales
Pre-tax profit to sales
Pre-tax profit Capital
Dividend
22.61%
17.20%
10.26%
20.48%
25.61%
20.72%
15.09%
38.57%
27.68%
23.09%
18.80%
57.71%
29.44%
25.09%
21.75%
78.95%
30.90%
26.74%
24.11%
102.14%
5.00%
10.00%
15.00%
20.00%
Estimated Financial Position
End of
Construction
Net Current Assets
End of 3rd
operating year
4,689
54,626
Net Fixed Assets
175,101
130,005
Total Assets (Net)
179,790
184,631
Less: Long Term (Debt)
107,874
64,724
71,916
119,907
Total Equity (Paid-up
Capital)
Debt Equity Ratio ( % )
60
40
35
65
CONTRIBUTION TO GROSS NATIONAL PRODUCT
The proposed project during first five years of its operation will contribute to gross national
product of the country as under:-
(Rs. in ,000)
Years
Efficiency (%)
SALES REVENUE (Net)
Ist yr
60%
2nd yr
70%
3rd yr
80%
4th yr
90%
5th yr
100%
143,605
183,851
220,820
261,026
304,702
Raw Material Consumed
68,508
86,321
105,743
126,891
149,890
Utilities
15,446
17,867
20,287
22,708
25,129
Stores & Spares
2,506
2,631
2,763
2,901
3,046
Repairs & Maintenance
3,342
3,509
3,685
3,869
4,062
240
252
265
278
292
90,042
110,579
132,742
156,647
182,419
53,563
73,272
88,078
104,379
122,283
Less:
General expenses including
Postage & Telegram
Printing & Stationary
Travelling etc
Value Added
AWAIS PACKAGES (PVT) LTD
LIST OF MACHINERY
No.
Description
Equipment
Flexographic Press 6, 8, 12 colors
Wide and medium Stiller rewinders
Inspection rewinding systems
Offset press 6 + Coating
Offset press 4 color
Bob Set Automatic Die cutting
Automatic Cutting
Automated Plate processing equipment
Air compressors & Chillers
Bailers
ANNEXURE II
Rate
Qty
(Rupees)
35,000,000
6,000,000
19,000,000
25,000,000
7,000,000
3,000,000
1,000,000
25,000,000
4,000,000
1,000,000
1
1
1
1
1
1
1
1
1
1
35,000,000
6,000,000
19,000,000
25,000,000
7,000,000
3,000,000
1,000,000
25,000,000
4,000,000
1,000,000
126,000,000
(Rupees)
in Millions
ANNEXURE III
AWAIS PACKAGES (PVT) LTD
CONSTRUCTION SCHEDULE
(ESTIMATED IN MONTHS)
M
1 to
3
O
4 to 6
N
T
7 to 9
H
S
10 to 11
12
1 Land Acquisition
1st month
2 Machinery Ordered
1st month
3 Site Development
Started
1st month
4 Site Development
Completed
2nd month
5 Building Construction
Started
1st month
6 Arrival of Machinery
5th month
7 Building Construction
Completed
5th month
8 Machinery Installation
Started
6th month
9 Machinery Installation
Completed
11th month
10 Trial Run
12th month
11 Normal Production
Started
12th month