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