Appendix:
SAIHAM TEXTILE MILLS LIMITED
Income Statement
As At 30 June,2012
Particulars
2008
2009
2010
2011
2012
Turnover ( net of VAT)
329877885 299738654
384689810
570302654
706980719
Less : Cost of Goods Sold
264342515 243496695
310938968
420758690
570131564
Gross Profit
65535370
56241959
73750842
149543964
136849155
Less : Operating Expenses
46071761 19,013,498
29,288,470
30382149
48336765
Operating Profit
19463609
37228461
44462372
119161815
88512390
5884726
148000
44359887
Less: Interest expense
27984957
26356216
18720460
17082835
16044269
Operating Profit before
W.P.P.F
Less : Provision For W.P.P.F
19463609
16756971
25741912
102226980
132872277
926839
797951
1225805
4867951
6327251
EBT
18536770
15959020
24516107
97359029
126545026
Less : Provision For Tax
2780516
1553178
1077421
14603854
16732233
Current Tax
2780516
1553178
17,105,196
15,069,122
16,37,364
-559,943
-372,963
-465,268
Net Income
15756254
14405842
23438686
82755175
109812793
Less : Dividend
12500000
12500000
12500000
37500000
37500000
3256254
1905842
10938686
45255175
72312793
Plus : Non operating Income
Deffered Tax
Transfer to the Reserve
SAIHAM TEXTILE MILLS LIMITED
Balance sheet
As At 30 June,2012
Particulars
Assets
2008
2009
2010
2011
2012
PPE( Net of Dep.)
241690452
Capital Work-in-Process( Melange Unit)
Current Assets
250862791
Inventories
210127650
Trade Debtors
25582021
Advances, Deposits & Prepayments
13065182
Cash & Cash Equivalents
2087938
247636691
254344746
252356134
208035745
151383986
17732588
27205310
11713861
280809386
172626204
90176034
9462744
8544404
385335553
284599985
62568728
14490609
23676231
865196688
134617570
1611282042
265986848
72735277
67795561
1204764356
492553243
455672436
535154132
637691687
2611096300
125000000
125000000
125000000
250000000
76095000
48950164
48950164
2764589
1505454
1645980
10687843
78589425
90843019
250000000
500000000
727500000
2764589
542979680
189109004
78589425
78589425
Total Shareholders Equity
Long Term Liability:
Deffered Tax Liability
281189879
254185569
263227432
343607608
2212353273
27,144,836
26584894
25894625
96529678
Current Liabilities:
Bank Loan & Overdraft
Short Term Loan
211363364
157561744
7725012
174,342,031
138623026
17512602
245,341,806
137655252
14666716
268189454
112973359
11113568
302213350
149231920
7090206
Non-Current Asset
Total Assets
Equity & Liabilities:
Shareholders Equity:
Share Capital
Deposit against Rights Share
Share Premium ( Rights Share)
General Reserve
Revaluation Reserve
Ratained Earnings
Tax holiday reserve
Reserve for reinvestment
Rights Share Money Refundable
Liabilities for Goods
Liabilities for Expenses & other
Finances
Provision for Tax
Current Account with FSML
Current Account with SCML
125494282
133220897
2842500
134483182
143390436
4664100
17240717
34670750
2412508
965686
1049872
57299216
10881630
-341712
39000000
Total Liabilities
211363364
201,486,867
271,926,700
294084079
398743028
Total Equity & Liabilities
492553243
455672436
535154132
637691687
2611096301
Calculation:
Particulars
Sales growth
Average sales growth
COGS in proportion to sales
Average proportion
Operating Expense(in proportion to
sales)
2008
2009
2010
2011
2012
- 0.0913648 0.28341742 0.48250003 0.23965883
0.22855287 0.2285
0.80133445 0.8123633 0.80828491 0.7377814 0.80643156
0.79323913 0.7932
0.13966308 0.0634336 0.07613529 0.05327373
Average proportion
Growth rate of non operating income
Average proportion
-1
0.0683707
0.08017528 0.0801
0 298.728966
99.2429887 99.242
Workers PPF
0.05882356 0.0553908 0.05229837 0.05882352 0.05761852
0.05659095 0.0565
Growth on PPF
0.00280964 0.0026622 0.00318648 0.00853573 0.00894968
0.00522874 0.0052
Growth on PPE
0.0246027 0.02708829
-0.0078186 2.42847497
0.61808685
0.025
Inventory in proportion to sales
0.63698617 0.5050533
0.4487413 0.49903325 0.37622928
0.49320865 0.4932
Trade debtors
0.07754997
0.0591602 0.23441233 0.10971144 0.10288156
0.11674309 0.1167
Advances,deposits&payments
0.03960612
0.0907634 0.02459837 0.02540863
0.47763658
0.4624796 0.35783441 0.19809369 0.21108344
0.34142555 0.3414
0.0584262 0.03812608 0.01948714 0.01002885
0.02989722 0.0298
0.0958945
0.05525421 0.0552
Bank loans and over drafts to sale
Short term loans
0.02341779
Provision for tax(on EBT)
0.15000003
0.0973229 0.04394748
0.01413887
0.0575192 0.09012651 0.23359684 0.20282086
0.11964045 0.1196
0.0032218 0.00272914 0.01908045 -0.0004833
0.00637227 0.0063
-0.0206279 -0.0259647 2.72778822
0.89373186 0.8937
0.15 0.13222355
0.11469879 0.1146
Liabilities for expences & other Finance
Provision for tax
0.00731334
Deferred tax liability Growth
Average growth
Growth of general reserve
Total loan
Average loan
Interest
Average interest
PPP
(-)depriciation
Net Amount
Depriciation for capital work in progress
Gross
-0.356723
-0.9435224
-1
-0.4600491
-0.46
165286756 156135628 152321968 124086927 156322126 3225
160711192 154228798 138204448 140204527 2394
0.174132 0.17089037 0.13545483 0.12184225
0.15057986 0.150
865196688 8868
50847
8359
134617570
1293
Depriciation
Net Amount
5279719 50726
129337851 1242
Total depreciation
55919
Proforma income statement:
SAIHAM TEXTILE MILLS LIMITED
Proforma Income Statement
Proforma Income Statement
Particulars
2012
2013
2014
2015
2016
2017
Turnover ( net of VAT)
706980719 868563188.3
1067075794 1310959024
1610582466
1978685704
Less : Cost of Goods Sold
570131564 688978310.5 846446277.7 1039904000
1277577039
1569570933
Gross Profit
136849155 179584877.8 220629516.2
271055024
333005427 409114771.6
Less : Operating Expenses
48336765 69637293.63 85553096.65
105106502 129128894.3 158641673.1
Operating Profit
88512390 109947584.2 135076419.6
165948522 203876532.7 250473098.5
Plus : Non operating
Income
Less: Interest expense
44359887
1776000
1776000
1776000
1776000
1776000
16044269 36051785.24 54114397.43
66482398 81677140.62 100344685.2
Operating Profit before
W.P.P.F
Less : Provision For W.P.P.F
116828008 75671798.93 82738022.17
101242124 123975392.1 151904413.3
6327251 4541488.884 5579459.183
6854660.57 8421312.883 10346028.07
EBT
110500757 71130310.05 77158562.99
94387463.8 115554079.2 141558385.3
Less : Provision For Tax
16732233 453261.4483 491675.0958
601462.281
Net Income
93768524
93786001.5 114817737.6 140656337.2
Less : Dividend
37500000 37596001.79 40782241.35
49888595.4
Transfer to the Reserve
56268524 33081046.81 35884646.54
43897406.1 53741504.87 65835500.59
70677048.6 76666887.89
736341.642 902048.0675
61076232.7
74820836.6
Proforma Balancesheet:
Proforma Balance sheet
SAIHAM TEXTILE MILLS LIMITED
Proforma Balance Sheet
Particulars
2012
2013
2014
2015
2016
2017
Assets
Non-Current Asset
999814258 965317326.3 929025857.4 895793454.9 859252622.5 722647295
PPE( Net of Dep.)
865196688 835979475.3
Capital Work-in-Process(
Melange Unit)
Current Assets
134617570
129337851 124265203.4 119391505.7
Inventories
265986848
428382879 526291013.5 646576332.8 794353206.5 975904908
804760654 776401949.3 749042567.9 722647295
114708955 110210054
Trade Debtors
72735277 101398753.3
124573729 153045411.7 188024379.1 230997889
Advances, Deposits &
Prepayments
Current Assets other than
cash
Total assets other than cash
67795561 18227142.21 16561822.79 21255731.87 31511623.09 39063661.
1406331944
1513326101
1596452423
1716670931
1873141831 196861375
Cash & Cash Equivalents
1204764356
1257943519
1272538220
1278317411
1277740739 109683171
Total Assets
2611096300
2771269620
2868990642
2994988342
3150882570 306544546
Share Capital
250000000
250000000
250000000
250000000
250000000 250000000
Deposit against Rights Share
500000000
500000000
500000000
500000000
500000000 500000000
Share Premium ( Rights
Share)
General Reserve
727500000
727500000
727500000
727500000
727500000 727500000
Revaluation Reserve
542979680
542979680
542979680
542979680
542979680 542979680
2212353273
2245434320
2248237920
2256250679
2266094778 208907977
406517686 548008774.5 667426565.3 820877476.4
1013889209 124596646
Equity & Liabilities:
Shareholders Equity:
Total Shareholders Equity
191873593 224954639.8 227758239.5 235770999.1 245615097.9 68600089.
Long Term Liability:
Deffered Tax Liability
96529678 94116436.05 91763525.15 89469437.02 87232701.09
Current Liabilities:
302213350 431718864.4 528989197.7
649268226 797555091.4 976365698
Bank Loan & Overdraft
149231920 296549666.7 364326942.8 447594909.6 549894008.8 675573860
Short Term Loan
7090206 25967626.31 31902601.71 39194032.76 48151941.26 59157205.
Rights Share Money
Refundable
Liabilities for Expenses &
other Finances
Provision for Tax
2842500
2842500
2842500
2842500
2842500 2842500
143390436 103915288.9 127665425.9 156843724.9 192690807.7 236730843
-341712 2443782.521 2251727.243 2793058.835 3975833.751 2061288.5
Current Account with FSML
Current Account with SCML
Total Liabilities
Total Equity & Liabilities
398743028 525835300.4 620752722.8 738737663.1 884787792.5 976365698
2611096301
2771269620
Beta calculation:
Covariance
Variance of market return
Beta
Market return
Market return -yearly
0.000485489
0.000439576
1.104448591
0.000793091
0.285512873
2868990642
2994988342
3150882570
30654454
WACC Calculation
Risk-free rate
0.0837
0.285512873
1.104448591
0.306591944
0.150579855
0.109170395
Market return
Beta
Cost of equity
Cost of debt
After tax cost of debt
Total market value of equity
Weight of debt
2287500000
322517293
0.876430975
0.123569025
WACC
0.282196755
Book value of debt
Weight of equity
Number of shares
outstanding
75000000
Change in NWC:
Particulars
Inventories
2012
265986848
2013
2014
2015
2016
2017
428382879 526291013.5 646576332.8 794353206.5 975904908.2
Trade Debtors
72735277 101398753.3
124573729 153045411.7 188024379.1 230997889.8
Advances, Deposits &
Prepayments
67795561 18227142.21 16561822.79 21255731.87 31511623.09 39063661.71
Non-cash Current Assets
406517686 548008774.5 667426565.3 820877476.4
1013889209
1245966460
Liabilities for Expenses &
other Finances
Provision for Tax
143390436 103915288.9 127665425.9 156843724.9 192690807.7 236730843.9
Total NON- STD currenl
liability
Working capital
143048724 106359071.4 129917153.2 159636783.7 196666641.4 238792132.5
-341712 2443782.521 2251727.243 2793058.835 3975833.751 2061288.586
263468962 441649703.1 537509412.1 661240692.7 817222567.4
NWC
1007174327
178180741.1 95859709.01 123731280.6 155981874.7 189951759.8
FCF Method
Particulars
EBIT
2013
2014
2015
2016
2017
142589295 143233880.5
185387357.9 227352259.9 278908360.5
EBIT(1-tc)
103377238.9 103844563.4
134405834.4 164830388.4 202208561.3
Depreciation
55919777.52 56992005.86
53160271.76 51268330.51 49443789.96
Capital
expenditure
Change in NWC
830699756.3 799688006.4
771528251.6 739861116.9
178180741.1 95859709.01
123731280.6 155981874.7 189951759.8
Free cashflow
811816031.6 864664866.6
835363077.2 799977961.1 669638931.5 683031710.1
607938340
Present value
discount factor
Present value of
free cashflow
Terminal value
0.779911504
0.608261954 0.474390496 0.369982605
811816031.6 674362076.7
508119577.8 379501941.5 247754756.3
Enterprise value
2373799628
Cash
1257943519
Interest-bearing
debt
963817615.1
322517293
Equity value
3309225854
Value per share
44.12301139
Economic value added
2013
Operating Profit
Finance Cost
109,947,584.17
36051785.24
2014
2015
2016
2017
135076419.6
165948522.4
203876532.7
250473098.5
54114397.43
66482398.04
81677140.62
100344685.2
Tax (Amount)
453,261.45
491,675.10
601,462.28
736,341.64
902,048.07
Tax Rate
71,130,310.05
0.006372269
77,158,562.99 94,387,463.77 115,554,079.21 141,558,385.25
0.006372269 0.006372269
0.006372269
0.006372269
Interest Tax Shield
229731.6626
344831.481
423643.7041
520468.6866
639423.2964
Net Operating Profit
After Tax
Total Asset
109476700.3
134560507.8
165314697.5
203097845.4
249516439.9
2771269620
2868990642
2994988342
3150882570
3065445468
Current Liabilities
431718864.4
528989197.7
649268226
797555091.4
976365698.2
Intagible Assets
Invested Capital
2339550756
2340001445
2345720116
2353327479
2089079770
Wacc
0.306591944
0.306591944
0.306591944
0.306591944
0.306591944
EVA
-607810713.2
-582865083.2
-553864192.1
-518413400.4
-390978587
Net Profit Before Tax
Balance sheet
based
2008
Operating Asset
490465305
Oprating Liability
Net Operating
Assest
BSA Aggregate
Accruals
46076608
444388697
2009
45351239 119604732 169997152
2008
19463609
Sales
329877885
DOL
EBIT
19463609
EPS
DFL
12.61
8397660
719892738
421498016.5 402806166 425511650
803964673
-11%
-102053303
2009
43113187
121.51%
299738654
-9.14%
-13.30
43113187
121.51%
11.52
-8.64%
-0.07
242420902
37013308
2%
9%
25%
-64086525
-55053681
4262808
20538194
-15%
-14%
1%
3%
Cash flow based
Accrual Ratio
EBIT
2012
398607336 407004996 444018304 1163911042
BSA Accrual Ratio
Aggregate Accruals
2011
443958575 526609728 614015456 1406331944
-45781361
Average NOA
Cash flow
based
2010
2010
44462372
3.13%
384689810
28.34%
0.11
44462372
3.13%
18.75
62.76%
20.06
2011
119309815
168.34%
570302654
48.25%
3.49
119309815
168.34%
3.31
-82.35%
-0.49
2012
132872277
11.37%
706980719
23.97%
0.47
132872277
11.37%
2.75
-16.92%
-1.49
