Attock Refinery

Financial Statement
2019
Issued, subscribed and paid up capital 115,634,450
Reserves 0
Unappropriated prot 814,695,987
Surplus on revaluation 0

NON-CURRENT LIABILITIES
Redeemable Capita
Long-term nancing
Liabilities against assets subject to nance lease
Deferred liabilities 236,902,775
Deferred income
236,902,775

CURRENT LIABILITIES
Trade and other payables 57,258,122
Dividend payable 0
Accrued interest / mark-up 271,166
Short-term borrowings 0
Current Portion of Non Current Liabilities 2,200,000
59729288
Total Liabilities 296,632,063
ASSETS
Property, plant and equipment 31,145,019
Intangible assets 0
Long-term investments 13,264,915
Long term advances and deposits 44,326
44,454,260
CURRENT ASSETS
Stores, spare parts and loose tools 3,575,963
Stock-in-trade 10,018,655
Trade debts 22,411,912
Due against construction work in progress 0
Short term advances 0
Short term deposits and prepayments and reciev 2,298,204

Short term investments 0

Advance income tax 0
Cash and bank balances 16,583,594
54,888,328
Total Assets 99,342,588
Income Statement
Gross Sales 231,311,790
Sales Tax and discount 54,557,248
Net Sales 176,754,542
Cost of Sales 180,815,670
Gross Profit -4,061,128
Distribution Cost 52,019
Administrative Cost 688,462
Other Operating Expenses 5,851

Other Operating Income -

Operating Profit -4,807,460

Finance Cost 6,623,676
Share of profit/(loss) of associate

Prot Before Tax 8,791,832

Provision for Taxation -2,250,727
Prot after tax 6,541,105
Total Comprehensive Income -5411023
Attock Refinery
 Assignment #3
Mohammad Aamir Saeeduddin 14320
M. Rao Asim 19319
Sardar Hamza Khan

Years 0 1 2
Years 2019 2020 2021

Sales Growth 5% 6%
Sales /Forecasted sales 231,311,790 242,877,379.50 257450022.27
Variable cost 180,815,670 189856453.5 201247840.71
Fixed Cost -3,327,295 -3,456,343 -3,618,944
Depreciation 4671752.85 4671752.85 4671752.85
EBIT 49,151,662 51,805,516 55,149,373
Taxes(35%) 17203081.7525 18131930.705 19302280.38515
Net Income 31,948,580 33,673,586 35,847,092

Operating cash flow 36,620,333 38,345,338 40,518,845

Working Capital -197,289,475 -207,153,949 -219,583,186

Change in Working Capital 197,289,475 9,864,474 12,429,237
NWC recovered
Initial Spending -729933903
Salvage value
Total Projected Cash Flow -532,644,428 48,209,812 52,948,082
Discounted Cash Flow -532,644,428 $43,827,102.00 $43,758,745.39
Cumulated Cash Flows $43,827,102.00 $87,585,847.38

1) Npv

Total Pv $392,716,789.08
Initial outlay -532,644,428
NPV ($139,927,638.92)

2) IRR

IRR -7%
3) Payback Period
Year Cash Flows Accumlated CF
0 -532,644,428 -532644428
1 48,209,812 -484,434,616
2 52,948,082 -431,486,534
3 58,577,571 -372,908,963
4 65,289,990 -307,618,973
5 348,718,583 41,099,610

Payback Period 4.88214103830749

4) Discounted Payback Period

Year Dis CF's Acc CF
0 -532,644,428 -532644428
1 $43,827,102.00 ($488,817,326.00)
2 $43,758,745.39 ($445,058,580.62)
3 $44,010,196.16 ($401,048,384.46)
4 $44,593,941.87 ($356,454,442.59)
5 $216,526,803.67 ($139,927,638.92)

Discounted Payback $ 5.65

5) ARR

ARR 5.15%

6) Profitability Index

PI 0.53801691833134
 % Deviation WACC
from
Base Case WACC
-30% 134,473,977
-15% 163,289,829
0% 192,105,681
15% 220,921,533
30% 249,737,385

% Deviation VARIABLE COSTS

from Variable
Base Case Cost
-30% $1,992,200,118.30
-15% $2,419,100,143.65
0% $2,846,000,169.00
15% $3,272,900,194.35
30% $3,699,800,219.70

it is very obvious from the graph that sales is the most sensiti
on the NPV of the com

the 2nd most effective determinent of the company is varia

whenever there is a minute increas

fixed costs has a very little effect on the change in NPV b

well, the graph doesn’t have a single trajectory in the case of

be i
nment #3

3 4 5
2022 2023 2024

7% 8% 9%
275471523.8289 297509245.735212 324285077.851381
215335189.5597 232562004.724476 253492585.149679
-3,820,027 -4,065,922 -4,364,685
4671752.85 4671752.85 4671752.85
59,284,608 64,341,410 70,485,425
20749612.8229355 22519493.6325704 24669898.8162767
38,534,995 41,821,917 45,815,526

43,206,748 46,493,670 50,487,279

-234,954,009 -253,750,329 -276,587,859

15,370,823 18,796,321 22,837,530
269320495

6073278.705
58,577,571 65,289,990 348,718,583
$44,010,196.16 $44,593,941.87 $216,526,803.67
$131,596,043.54 $176,189,985.41 $392,716,789.08
 Sensitivity ana

WACC % Deviation FIXED COSTS

NPV from Fixed
5179192823.76 Base Case Costs
4,080,203,558 -30% -$432,034,849
4,071,990,421 -15% -$524,613,746
5,179,192,824 0% -$617,192,642
4,055,564,367 15% -$709,771,538
4,047,351,340 30% -$802,350,435

VARIABLE COSTS % Deviation sales

NPV from Sales
$5,179,192,824 Base Case
$9,029,930,456 -30% $2,487,793,704.90
$7,104,561,640 -15% $3,020,892,355.95
$5,179,192,824 0% $3,553,991,007
$3,253,824,008 15% $4,087,089,658.05
$1,328,455,191 30% $4,620,188,309.10

comments
raph that sales is the most sensitive determinent of this company. Which means that a little change in sale will have a large effect
on the NPV of the company. Also, sales has the highest slope compared to others.

erminent of the company is variable costs. A major thing to be noted here is variable costs is negatively sloped which means that
henever there is a minute increase variable costs than NPV will decrease at a higher rate and vice versa.

ttle effect on the change in NPV because of less steepness. The change in fixed costs will have minute effect on the NPV of the
company.
a single trajectory in the case of WACC. It keeps on change at variable rates over different points. So, not much infrtomation can
be interpreted from the WACC's behaviour.
Rate Of return 10%

Companies depreciation
% Change in dep of company
% Change in dep of company

I have added the original depreciation of the company to its Netincome and sub
the percentages given in the assignme
 Sensitivity analysis

FIXED COSTS
NPV
$5,179,192,824
$4,169,359,540
$4,674,276,182
$5,179,192,824
$5,684,109,466
$6,189,026,108

sales 12000000000

NPV
$5,179,192,824
$370,518,859 10000000000

$2,774,855,841
$5,179,192,824
8000000000
$7,583,529,806
$9,987,866,789

6000000000
NPV

ange in sale will have a large effect

4000000000

egatively sloped which means that

2000000000
ice versa.

minute effect on the NPV of the 0

-0.3 -0.15

nts. So, not much infrtomation can

 2018 2019 2020 2021 2022 2023
2580963 2710011 2872612 3073695 3319590 3618353

0.01

of the company to its Netincome and subtracted the new depreciation caculated using
the percentages given in the assignment
 % Deviation
from effect of each determinent on NPV
Base Case WACC fixed costsvariable cosales
-30% 4.08E+09 4.17E+09 ### 3.71E+08
-15% 4.07E+09 4.67E+09 ### 2.77E+09
0% 5.18E+09 5.18E+09 ### 5.18E+09
15% 4.06E+09 5.68E+09 ### 7.58E+09
30% 4.05E+09 6.19E+09 ### 9.99E+09

000000000
sensiti vity analysis graph
000000000

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000000000

000000000

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0
-0.3 -0.15 0 0.15 0.3

deviation from base value

WACC fixed costs variable costs sales

0.3