total asset

tangible asset
expected fixed asset turnover
purchases
inventory holding
collection period
employee benefit fixed
other exp fixed
depreciation SLM
expected sales growth in 2nd year
assume no input-output price change
cash holding

Working capital required:

equity 710
debentures 710

PROFIT AND LOSS

1200 REVENUE

600 PURCHASES
120 EMPLOYEE BENEFIT
96 OTHER EXP
100 DEPRECIATION
71 INTEREST
213 PBT

63.9 tax
149.1 PAT
2.10 EPS BASIC
1.87 EPS DILUTED

106.5
 1.87

142.00

Equity inv
Equity
0 -710
1 142
2 4513.6
162%
projected share price 63.57

Rs. In cr.
Issue of Rs. 100 cr. No. equity of Rs. 10 each 1000
Issue of Rs. 10 cr. No. convertible debentures of Rs. 100 each 1000
2000

Expected EPS at T1
P/E Ratio
EPS is expected grow @ 5% p.a.
Conversion ratio : 1 Debenture = 5 equity shares
Expected dividend 30% of EPS
Interest rate on CD =10%
 1000
1.2
50% of sales
2 months
2 months
10% of sales
8% of sales
100 Scrap=0
10%

5% of inventory and receivables

depreciation

284
1320 1320

660
132 asset 1000
105.6 inventory 200
100 receivable 200
71 cash 20
251.4 1420

75.42 30%
175.98
2.48
2.12 BALANCE SHEET
EQUITY 710
DEBENTURES 710
R&S 7.1
 Proposed dividend 142

1569.1
Convertible debentures

-710
71
2327.8
86%

2
10 times
useful life=10

100

cash holding 20

inventory 200

1220

CASH FLOW
PAT 149.1
ADD:
DEPR 100
dividend 20% 29.82 INT 71
TAX 63.9
ASSET 900 384
CASH 20 Advance tax 63.9
INVENTORY 200 320.1
RECEIVABLES 200 FINANCE COST -71
investment 249.1 249.1
investment -249.1
1569.1 OPENING 20

CLOSING 20