Balance Sheet of M/s CCI

As on Dec 31, 1987

Liability
Amount
Share Capital
Common Stock (4.5Mn @1)
4,500
Paid in Surplus
40,000
Retain Earning
158,000
Shareholders Fund
Total

Fig in '000
Amount

202,500
202,500

Assets
Amount
Amount
Property, Plant & Equipment
Carrier Operating Property
236,650
Less Accumulated Depreciation
(89,100)
Net Assets
147,550
Other Assets
30,900
Current assets & Advance
Cash
19,000
Account receivable
38,450
Inventory
8,100
Prepaid Exp
9,100
Current assets (A)
74,650
Current liability
Accounts Payable
25,300
Misc Payable
20,250
Taxes Payable
5,050
Current Liability (B)
50,600
Working Capital (A-B)
24,050
Total

202,500

Abstract of Balance sheet

Equity share
Pref. Share
Reserve & surplus
Share holderd fund

1987
4,500
198,000
202,500

PPE
Other assets
Current Assets
Current Liability

147,550
30,900
74,650
(50,600)

1988

1989

1990

1991

Apllication of Fund

202,500

Cash Flow
fig in '000
Cash
Cash out flow
DCF @
Year
inflow
Int @ 10% Principal Total
10%
0
50
1
5.00
2.50
7.50
(6.82)
2
4.75
2.50
7.25
(5.99)
3
4.50
2.50
7.00
(5.26)
4
4.25
2.50
6.75
(4.61)
5
4.00
2.50
6.50
(4.04)
6
3.75
2.50
6.25
(3.53)
7
3.50
2.50
6.00
(3.08)
8
3.25
2.50
5.75
(2.68)
9
3.00
2.50
5.50
(2.33)
10
2.75
2.50
5.25
(2.02)
11
2.50
2.50
5.00
(1.75)
12
2.25
2.50
4.75
(1.51)
13
2.00
2.50
4.50
(1.30)
14
1.75
2.50
4.25
(1.12)
15
1.50
15.00
16.50
(3.95)
50
(50.00)
Net Cash Flow
0.00

IRR
8%
9%
10%
11%
12%
13%
14%
15%

Net Cash
flow
(6.17)
(2.94)
2.67
5.11
7.35
9.40
11.28

Cloging Bal of Loan

50
47.5
45
42.5
40
37.5
35
32.5
30
27.5
25
22.5
20
17.5
15
0

14490
16650
2160
19170
2520
22320
3150
25020
2700
28800
3780
25600
-3200
Average Growth

630000
693750
63750
737305
43555
858460 121155
926665
68205
1028570 101905
1080000
51430
Average Growth

15%
15%
16%
12%
15%
-11%
10%

10.00%
Year

EBIT

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15

34.00
37.40
41.14
45.25
49.78
54.76
60.23
66.26
72.88
80.17
88.19
97.01
106.71
117.38
129.11

Year
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15

Interest
5.00
4.75
4.50
4.25
4.00
3.75
3.50
3.25
3.00
2.75
2.50
2.25
2.00
1.75
1.50

If Funded by debt
EBT
Tax
PAT
29.00
11.60
17.40
32.65
13.06
19.59
36.64
14.66
21.98
41.00
16.40
24.60
45.78
18.31
27.47
51.01
20.40
30.60
56.73
22.69
34.04
63.01
25.20
37.80
69.88
27.95
41.93
77.42
30.97
46.45
85.69
34.27
51.41
94.76
37.90
56.85
104.71
41.88
62.82
115.63
46.25
69.38
127.61
51.05
76.57

If Funded by debt
optimesticRealistic Passimastic
3.87
3.87
3.87
4.35
4.13
3.90
4.89
4.40
3.93
5.47
4.68
3.97
6.10
4.98
4.00
6.80
5.29
4.03
7.56
5.61
4.07
8.40
5.95
4.10
9.32
6.30
4.13
10.32
6.67
4.17
11.42
7.05
4.20
12.63
7.45
4.23
13.96
7.87
4.27
15.42
8.31
4.30
17.02
8.78
4.33

EPS
3.867
4.353
4.885
5.467
6.104
6.801
7.564
8.401
9.318
10.323
11.425
12.634
13.961
15.417
17.015

Interest
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

If Funded by Share
EBT
34.00
37.40
41.14
45.25
49.78
54.76
60.23
66.26
72.88
80.17
88.19
97.01
106.71
117.38
129.11

If Funded by Share
Year optimesticRealistic
1
2.72
2.72
2
2.99
2.86
3
3.29
3.00
4
3.62
3.15
5
3.98
3.31
6
4.38
3.47
7
4.82
3.65
8
5.30
3.83
9
5.83
4.02
10
6.41
4.22
11
7.05
4.43
12
7.76
4.65
13
8.54
4.88
14
9.39
5.13
15
10.33
5.39

Debts Scenario

Equity Share
17.00
14.00
11.00
8.00
5.00
2.00

5
optimestic

11

Realistic

13

15

Passimastic

optimestic

9
Realistic

10%
6%
16%
8%
11%
5%
9%

If Funded by Share
Tax
PAT
13.60
20.40
14.96
22.44
16.46
24.68
18.10
27.15
19.91
29.87
21.90
32.85
24.09
36.14
26.50
39.75
29.15
43.73
32.07
48.10
35.27
52.91
38.80
58.20
42.68
64.02
46.95
70.43
51.65
77.47

nded by Share
Passimastic
2.72
2.72
2.72
2.72
2.72
2.72
2.72
2.72
2.72
2.72
2.72
2.72
2.72
2.72
2.72

EPS
2.720
2.992
3.291
3.620
3.982
4.381
4.819
5.301
5.831
6.414
7.055
7.760
8.537
9.390
10.329

If Funded by Preference Sahre @10.50

EBT
Tax
PAT
Pref Div
EPS
34.00
13.60
20.40
5.25
3.367
37.40
14.96
22.44
5.25
3.820
41.14
16.46
24.68
5.25
4.319
45.25
18.10
27.15
5.25
4.867
49.78
19.91
29.87
5.25
5.471
54.76
21.90
32.85
5.25
6.134
60.23
24.09
36.14
5.25
6.864
66.26
26.50
39.75
5.25
7.668
72.88
29.15
43.73
5.25
8.551
80.17
32.07
48.10
5.25
9.523
88.19
35.27
52.91
5.25 10.592
97.01
38.80
58.20
5.25 11.767
106.71
42.68
64.02
5.25 13.061
117.38
46.95
70.43
5.25 14.484
129.11
51.65
77.47
5.25 16.049

If Funded by Prefernce Share

Year optimesticRealistic Passimastic
1
3.37
3.37
3.37
2
3.82
3.59
3.37
3
4.32
3.83
3.37
4
4.87
4.08
3.37
5
5.47
4.34
3.37
6
6.13
4.62
3.37
7
6.86
4.91
3.37
8
7.67
5.21
3.37
9
8.55
5.53
3.37
10
9.52
5.87
3.37
11
10.59
6.22
3.37
12
11.77
6.59
3.37
13
13.06
6.97
3.37
14
14.48
7.38
3.37
15
16.05
7.81
3.37

quity Share

11
Realistic

Preference Share
17.00

17.00

14.00

14.00

11.00

11.00

8.00

8.00

5.00

5.00

2.00

2.00

13

Passimastic

optimestic

7
Realistic

11

13

Passimastic

15

14490
16650
2160
19170
2520
22320
3150
25020
2700
28800
3780
25600
-3200
Average Growth

630000
693750
737305
858460
926665
1028570
1080000
Average Growth

15%
15%
16%
12%
15%
-11%
10%
10.00%
Year
1
2
3
4
5
6
7
8
9
#
#
#
#
#
#

Year
Growth
1
2
3
4
5
6
7
8
9
10
11
12
13
14

If Funded by debt
optimestic Realistic Passimastic
10%
5%
0%
3.87
3.87
3.87
4.35
4.13
3.90
4.89
4.40
3.93
5.47
4.68
3.97
6.10
4.98
4.00
6.80
5.29
4.03
7.56
5.61
4.07
8.40
5.95
4.10
9.32
6.30
4.13
10.32
6.67
4.17
11.42
7.05
4.20
12.63
7.45
4.23
13.96
7.87
4.27
15.42
8.31
4.30

EBIT
34.00
37.40
41.14
45.25
49.78
54.76
60.23
66.26
72.88
80.17
88.19
97.01
106.71
117.38
129.11

Year
Growth
1
2
3
4
5
6
7
8
9
10
11
12
13
14

If Funded by Shar
Interest
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

If Funded by Share
optimestic Realistic
10%
5%
2.72
2.72
2.99
2.86
3.29
3.00
3.62
3.15
3.98
3.31
4.38
3.47
4.82
3.65
5.30
3.83
5.83
4.02
6.41
4.22
7.05
4.43
7.76
4.65
8.54
4.88
9.39
5.13

15

17.02

8.78

4.33

15

10.33

Debts Scenario

5.39

Equity Share
17.00
14.00
11.00
8.00
5.00
2.00

5
optimestic

11

Realistic

13

15

Passimastic

5
optimestic

9
Realistic

63750
43555
121155
68205
101905
51430
Average Growth

#
#
#
#
#
#
#

If Funded by Share
EBT
Tax
PAT
34.00
20.40
37.40
22.44
41.14
24.68
45.25
27.15
49.78
29.87
54.76
32.85
60.23
36.14
66.26
39.75
72.88
43.73
80.17
48.10
88.19
52.91
97.01
58.20
106.71
64.02
117.38
70.43
129.11
77.47

by Share
Passimastic
0%
2.72
2.72
2.72
2.72
2.72
2.72
2.72
2.72
2.72
2.72
2.72
2.72
2.72
2.72

EPS
2.720
2.992
3.291
3.620
3.982
4.381
4.819
5.301
5.831
6.414
7.055
7.760
8.537
9.390
10.329

If Funded by Preference Sahre @10.50

EBT
Tax
PAT
Pref Div
34.00
13.60
20.40
5.25
37.40
14.96
22.44
5.25
41.14
16.46
24.68
5.25
45.25
18.10
27.15
5.25
49.78
19.91
29.87
5.25
54.76
21.90
32.85
5.25
60.23
24.09
36.14
5.25
66.26
26.50
39.75
5.25
72.88
29.15
43.73
5.25
80.17
32.07
48.10
5.25
88.19
35.27
52.91
5.25
97.01
38.80
58.20
5.25
106.71
42.68
64.02
5.25
117.38
46.95
70.43
5.25
129.11
51.65
77.47
5.25

If Funded by Prefernce Share

Year
optimestic Realistic Passimastic
Growth
10%
5%
0%
1
3.37
3.37
3.37
2
3.82
3.59
3.37
3
4.32
3.83
3.37
4
4.87
4.08
3.37
5
5.47
4.34
3.37
6
6.13
4.62
3.37
7
6.86
4.91
3.37
8
7.67
5.21
3.37
9
8.55
5.53
3.37
10
9.52
5.87
3.37
11
10.59
6.22
3.37
12
11.77
6.59
3.37
13
13.06
6.97
3.37
14
14.48
7.38
3.37

EPS
3.367
3.820
4.319
4.867
5.471
6.134
6.864
7.668
8.551
9.523
10.592
11.767
13.061
14.484
16.049

2.72

15

16.05

7.81

3.37

Equity Share

9
Realistic

11

Preference Share

13
Passimastic

17.00

17.00

14.00

14.00

11.00

11.00

8.00

8.00

5.00

5.00

2.00

2.00
1

3
optimestic

7
Realistic

11

13

Passimastic

15

Interest
5.00
4.75
4.50
4.25
4.00
3.75
3.50
3.25
3.00
2.75
2.50
2.25
2.00
1.75
1.50

If Funded by debt
EBT
Tax
29.00
11.60
32.65
13.06
36.64
14.66
41.00
16.40
45.78
18.31
51.01
20.40
56.73
22.69
63.01
25.20
69.88
27.95
77.42
30.97
85.69
34.27
94.76
37.90
104.71
41.88
115.63
46.25
127.61
51.05

PAT
17.40
19.59
21.98
24.60
27.47
30.60
34.04
37.80
41.93
46.45
51.41
56.85
62.82
69.38
76.57

EPS
3.867
4.353
4.885
5.467
6.104
6.801
7.564
8.401
9.318
10.323
11.425
12.634
13.961
15.417
17.015

Present
A
B
C
D
E
F
G
H
I
J
K
L
I

Equity Share
EBIT
Interest @ 10%
EBT
(B-C)
Tax
@40%
PAT
(D-E)
Pref div @ 10.50%
PAPD
(F-G)
Dividend @ ( 150%)
Retain earning
(H-I)
Shareholders Fund
EPS ( in $)
(H/A)
Book Value
(K/A)

4.50
25.60
25.60
10.24
15.36
15.36
6.75
8.61
202.50
3.41
45.00

7.50
34.00
34.00
13.60
20.40
20.40
11.25
9.15
211.65
2.72
28.22

Option A
Equity
202.50
202.50
20.40
11.25
202.50
211.65
45.00
28.22

Present
Sahreholder fund
PAT
Divided
sinking fund
Adj Shareholder fund
Book Value

Option A
Equity

Fig in '000

Option B
Option C
Pref share
Bonds
4.50
4.50
34.00
34.00
5.00
34.00
29.00
13.60
11.60
20.40
17.40
4.50
15.90
17.40
6.75
6.75
9.15
10.65
211.65
210.65
3.53
3.87
47.03
46.81

Fig in '000

Option B
Option C
Pref share
Bonds
202.50
202.50
20.40
17.40
11.25
6.75
2.50
211.65
210.65
47.03
46.81

Option A
Equity
5.38
5.38
14.63
18.38
2.72
3.41

Present
P/E Ratio
Market Avg Prices
EPS

Option B Option C
Pref share Bonds
5.38
5.38
19.01
20.80
3.53
3.87