ANNEXURE-VIII

ADAM SUGAR MILLS LIMITED

CALCULATION OF DEBT-SERVICE COVERAGE

(Rupees in 000)

Income for Loan Repayment:

Net Profit

At Existing
Capacity
2011-2012

2012-2013

After Capacity Enhancement

2013-2014
2014-2015

2015-2016

134,479

274,768

315,701

345,197

358,892

Depreciation

42,157

65,756

62,035

58,568

55,331

Amortization

844

844

844

844

841

128,165

137,855

127,815

113,711

100,176

305,645

479,223

506,395

518,320

515,240

128,165

137,855

127,815

113,711

100,176

19,991

64,667

100,000

100,000

100,000

148,156

202,522

227,815

213,711

200,176

2.06

2.36

2.22

2.42

2.57

Financial Charges

Loan Obligations:
Financial Charges
Instalments of Principal

Debt/Service Coverage (Times)

ANNEXURE-IX

ADAM SUGAR MILLS LIMITED

CONTRIBUTION TO GNP

(Rupees in 000)
At Existing
Capacity
2011-2012

2012-2013

Capacity %

80%

85%

90%

95%

95%

Sales Value of Production

3,238,879

5,134,922

5,697,913

6,017,087

6,064,301

Raw Material

2,620,500

4,109,036

4,350,734

4,592,399

4,592,399

Excise Duty

247,968

393,453

436,888

461,363

465,035

Manufacturing Overheads

74,041

85,428

97,334

106,152

121,880

Selling and Gen. Expense

(Excluding Salaries)
Total

20,531

23,288

24,619

26,072

27,733

2,963,040

4,611,205

4,909,575

5,185,986

5,207,047

275,839

523,717

788,338

831,101

857,254

After Capacity Enhancement

2013-2014
2014-2015

2015-2016

Less: Expenditure on:-

Contribution to GNP
(Value Added)
Value Added
(Average of 5 years)
Employment (No.)
Value Added Per Worker
Average Value Added
Per Worker

------------------------------------------------

655,249

------------------------------------------------

762

762

762

762

762

361.99

687.29

1,034.56

1,090.68

1,125.00

------------------------------------------------

859.90

------------------------------------------------

ANNEXURE-X

ADAM SUGAR MILLS LIMITED

Commercial Break-Even
( Third Year of Operations at 90% Capacity )

(Rupees in 000)
Fixed

Variable

Raw Material

4,350,734

Packing

33,628

Labour

78,177

Manufacturing Overheads

80,349

16,985

Depreciation

62,035

2,724

40,672

121,435

Selling Expenses
General & Admin. Expenses
Financial Expenses

382,668

Sales Value of Production

5,697,913

Commercial Break-Even

382,668
5,697,913

36.61%

4,404,071

X
-

4,404,071

90%

ANNEXURE-XI

ADAM SUGAR MILLS LIMITED

Cash Break-Even
( Third Year of Operations at 90% Capacity )

(Rupees in 000)
Fixed

Variable

Raw Material

4,133,197

Packing

33,628

Labour

78,177

Manufacturing Overheads

80,349

16,985

2,724

40,672

Financial Expenses

121,435

Repayment of Debts

100,000

Selling Expenses
General & Admn. Expenses

420,633

Cash Sales

4,843,226

Cash Break-Even

420,633
4,843,226

57.65%

4,186,534

X
-

4,186,534

90%

ANNEXURE-XII

ADAM SUGAR MILLS LIMITED

WEIGHTED AVERAGE COST OF FUNDS

(Rs. in 000)

Amount

Int/Ret (%)
Before Tax

Int/Ret (%)
After Tax

Int / Ret
Before Tax

Int / Ret
After Tax

L.T. Bank Loan for Capacity Extension

400,000

16.47%

10.70%

65,880

42,800

Deferred Liabilities

225,239

15%

9.75%

33,786

21,961

57,637

25%

25%

14,409

14,409

114,075

79,170

Sponsors Equity

682,876

WEIGHTED AVERAGE COST OF CAPITAL (B/T)

16.70%

WEIGHTED AVERAGE COST OF CAPITAL (A/T)

11.59%

ADAM SUGAR MILLS LLIMITED

LIST OF ANNEXURES

ANNEXURE NO.
APPRAISED COST OF THE ENHANCEMENT OF CAPACITY PROJECT

FINANCIAL PLAN FOR CAPACITY ENHANCEMENT

II

SUMMARY OF COST OF EQUIPMENTS FOR CAPACITY EXTENSION

III

ESTIMATED INCOME STATEMENTS

IV

ESTIMATED CASH-FLOW STATEMENTS

ESTIMATED BALANCE SHEETS

VI

ASSUMPTIONS UNDERLYING FINANCIAL STATEMENTS

VII

CALCULATION OF DEBT-SERVICE COVERAGE

VIII

CONTRIBUTION TO GNP

IX

COMMERCIAL BREAK-EVEN

CASH BREAK-EVEN

XI

WEIGHTED AVERAGE COST OF FUNDS

XII

LONG-TERM DEBT REPAYMENT SCHEDULE

XIII

COST & DETAILS OF EQUIPMENTS FOR ENHANCEMENT OF MILLS

XIV

ANNEXURE-VI (Contd)
(Rupees in 000)
ACTUAL
AS OF
(Sep 30, 2011)

2011-2012

AFTER CAPACITY ENHANCEMENT

2012-2013
2013-2014
2014-2015

2015-2016

LIABILITIES & EQUITY:

CURRENT LIABILITIES:
ACCOUNTS PAYABLE/ACCRUED

171,041

178,991

182,759

S.T. BORROWING (DIRECTORS)

100,000

100,000

100,000

235,654

316,457

495,937

517,462

531,820

11,703

14,409

17,291

20,173

23,055

25,936

49,410

61,763

45,293

28,823

12,353

TAXES PAYABLE

69,972

72,412

147,952

169,993

185,875

193,250

WORKERS FUND

15,572

31,818

36,558

39,973

37,714

666,448

858,040

929,713

953,327

946,207

S.T. BANK BORROWING

DIVIDENDS PAYABLE
MARK-UP ON L.T. BANK LOAN

161,759
-

158,139
-

145,134
-

FOR CAPACITY EXTENSION

352,716
CURRENT MATURITY OF:
HBL L.T. EXISTING LOAN
LEASES
L.T. BANK LOAN FOR
CAPACITY EXTENSION
CURRENT LIABILITIES:

14,667

5,324

50,000

100,000

100,000

100,000

100,000

716,448

958,040

1,029,713

1,053,327

1,046,207

350,000

250,000

150,000

100,000

50,000

372,707

LONG-TERM DEBT:
L.T. BANK LOAN FOR
CAPACITY EXTENSION
L.T. HBL LOAN
LEASES

14,666

DEFERRED LIABILITIES (TAXES)

225,214

225,214

225,214

225,214

225,214

225,214

SUB TOTAL:

239,880

575,214

475,214

375,214

325,214

275,214

TOTAL LIABILITIES:

612,587

1,291,662

1,433,254

1,404,927

1,378,541

1,321,421

(CONTINUED)

ANNEXURE-VI (Contd)

(Rupees in 000)
ACTUAL
AS OF
(Sep 30, 2011)

2011-2012

AFTER CAPACITY ENHANCEMENT

2012-2013
2013-2014
2014-2015

2015-2016

CAPITAL:
SURPLUS ON ASSETS
REVALUATION
PAID-UP CAPITAL

255,996

57,637

255,996

57,637

255,996

57,637

255,996

57,637

255,996

57,637

255,996

57,637

DIRECTORS SUBORDINATED LOAN

239,324

239,324

239,324

239,324

239,324

239,324

GENERAL RESERVE

100,000

100,000

100,000

100,000

100,000

100,000

ACCUMULATED RETAINED
EARNINGS:

174,835

294,905

432,312

470,363

496,977

507,791

TOTAL CAPITAL:

827,792

947,862

1,085,269

1,123,320

1,149,934

1,160,748

1,440,379

2,239,524

2,518,523

2,528,247

2,528,475

2,482,169

CURRENT
RATIO:

1.69:1

1.31:1

1.50:1

1.32:1

1.35:1

1.36:1

DEBT EQUITY
RATIO:

24:76

39:61

30:70

19:81

10:90

3:97

TOTAL LIABILITIES
& CAPITAL:

RATIOS:

ADAM SUGAR MILLS LIMITED

PROJECT COST FOR CAPACITY EXTENSION PROJECT
(Rs. in 000)
ESTIMATED
EXISTING COST

EXTENSION

AS OF 30-09-2011

PROJECT COST

UPTO
COMPLETION

LAND

36,100

36,100

BUILDING & CIVIL WORKS

38,979

38,979

696,232

696,232

25,615

25,615

VEHICLES

5,533

5,533

OFFICE EQUIPMENT

3,983

3,983

INTANGIBLE ASSETS

717

717

1,291

1,291

808,450

808,450

MACHINERY & EQUIPMENT (EXISTING)

WORK-IN-PROGRESS

LONG-TERM DEPOSITS

MACHINERY & EQUIPMENT (PROPOSED)

FOR EXTENSION OF CAPACITY TO 7000 TCD
MECHANICAL EQUIPMENT

(Mill House & Boiler)

427,048

427,048

CHEMICAL EQUIPMENT

(Process House)

55,033

55,033

ELECTRICAL EQUIPMENT

(Mill House Boiler

and Process House)

17,919

17,919

500,000

500,000

3,500

3,500

25,175

25,175

28,675

28,675

528,675

1,337,125

(Including Transportation, Erection,

Installation and Commissioning)

(As per Quotations)

PRELIMINARY EXPENSES
(3% of Loan (Rs.400 Million) +
4.5% of Mechanical, Chemical & Electrical Cost (Rs.500 M)

CONTINGENCIES (5%)

TOTAL FIXED COST

808,450

NET WORKING CAPITAL (C.Assets C. Liabilities)

270,750

TOTAL PROJECT COST

1,079,200

528,675

270,750
1,607,875

ANNEXURE - III

ESTIMATED COST OF EQUIPMENTS REQUIRED FOR ENHANCEMENT OF MILLS CAPACITY

UPTO 6500 TO 7000 TCD

SUMMARY

Sr. #

DEPARTMENT

Estimated Cost (Rs.)

Remarks

MECHANICAL

427,048,290 MILL HOUSE + BOILER

CHEMICAL

55,032,600 PROCESS HOUSE

ELECTRICAL

MILL HOUSE + BOILER

17,919,110 + PROCESS HOUSE

Grand Total: Rs.

* DETAILS & LIST OF EQUIPMENT IN ANNEXURE XVI

500,000,000

7.

Board of Directors

1. Mr. Ghulam Ahmed Adam

2. Mr. Abdul Karim
3. Mr. Syed Rafique Mohammad Shah
4. Lt. Col. (Rtd) Muhammad Mujtaba
5. Mr. Jawed Ahmed
6. Mr. Junaid G. Adam
7. Mr. Omar G. Adam

8.

Financial Assistance
Availed (As on 30-06-2011)

Demand Finance
Leases
S.T. Bank Borrowings

9.

Paid-up Capital

"

Rs.

57.636

Rs.

258.990

"

Rs.

100.000

Financial Assistance
Required

Syndicated Long-Term

Revaluation Surplus
General Reserves
10.

11.

18.334

Million

0.315

"

1,313.377

"

455.000

Million

Bank Loan (5 Years, with One Year Grace)

Five Years' Review at a Glance

2010-2011

Cane Crushed (Metric Tons)

2009-2010

2008-2009

2007-2008

2006-2007

457,538

313.363

256.030

350.663

289.898

Recovery

9.38%

8.85%

9.47%

9.02%

7.00%

Sugar Produced (Metric Tons)

42,883

27.716

24.835

31.622

19.959
(Rs. In Million)

Sales

2,438.024

2,138.541

1,156.966

716.110

528.250

Cost of Sale

2,212.244

1,920.021

887.465

635.038

652.142

225.780

218.520

269.502

81.072

(123.892)

Profit/(Loss) Before Tax

91.606

133.707

184.915

10.211

(172.687)

Profit/(Loss) After Tax

30.854

92.795

48.462

4.325

(109.947)

Gross Profit/(Loss)

(Rupees)
Earning per Share

10.54

16.10

8.41

0.75

(19.08)

Break-up Value of Share

36.00

49.56

32.27

21.60

18.49