Professional Documents
Culture Documents
Financial Model - Version 3 (03!10!2020)
Financial Model - Version 3 (03!10!2020)
1. Parts of Machines with Useful Life of one year or less (repair and maintenance)
2. Component wise cost and useful life
3. How is USD 50 dollar maintenance cost calculated?
4. Understanding capacity of the plant (how it is being calculated) e.g. mold, cycle time etc. Linking raw material compositi
5. Reason for wide ranges?
6. Many figures are different from the information provided by PH?
7. Details of factory workers required (efficiency depends on how well the workers work). Packing, loading, unloading???
8. Packing Material and Sizes (Finished Products)
9. Packing of Raw Materials and their CBMs. Packing of finished goods and CBM of packing
10. Identifying Installation Costs in PKR (Probably Based on Quotations)
11. Understanding the difference between bamboo pulp, bagasse pulp and eculaptus (cost, charecteristic, difference in fin
11. Modelling Different Raw Materials (Bamboo Pulp, Bagasse Pulp and Eculaptus Pulp)
12. Difference between capacity and raw material consumption
13. Raw Materials Inputs to Outputs Ratio
14. Raw Material to Finished Product (Input to Output Ratio)
15. Separate Costing for Pulping
16. Separaate Costing for Forming and Trimming.
Financing and Fixed Assets Assumptions (Other than Costing in relevant schedules with timelines and stuff)
17. Royalties and licensing fee to PH
18. The actual Loan amount will be in PKR. The liability balances and payment amounts will be incorrect in dollars. This ne
19. Similarly, the actual finance lease is in PKR and converting the finance lease to USD at start and then amortizing will be
20. Because the reporting currency, payments of taxes, duties and everything will be in PKR (except purchase of raw mate
The purchase of plant and machinery will be converted into pkr at spot rate. All other expenses are in PKR. Only sales and
Export processing zones and SEZs allow offshore accounts.
A rupee financial model will be more aligned to the operational model of the business.
Ideally speaking, interest shall only have an impact on exports and imports.
Within SEZ there is assurance that incentives will continue to exist (but outside SEZ, laws can change such as exemption o
nking raw material composition, machine capacity, product fact sheet to drive production plan.
e incorrect in dollars. This needs to be incorporated into the model e.g. making schedule in PKR and then converting in USD. This will pr
t and then amortizing will be misleading.
xcept purchase of raw materials and sales), its better to build a rupee financial model.
es are in PKR. Only sales and purchases will be in USD (where most of the payments can be offset thus reducing the exchange rate impa
Administrative Expenses
Staffing Plan, Remuneration and Insurance No. of Employees
CEO / Managing Director 1
Finance Manager 1
Production Manager 1
Sales and Distribution Manager 1
Supply Chain Manager 1
HR Manager 1
Warehouse Manager 1
Accounts and Finance Executives 2
Production Supervisers 2
Sales Executives 2
Supply Chain Executives 2
Admin and Support Staff 2
Production Workers 132
Total 149.00
Utilities Monthly
Utilities - Telephone 20,000.00
Utilities - Internet 20,000.00
Utilities - Electricity 50,000.00
Office Supplies 25,000.00
Total Utilities Expenses 115,000.00
BeSure HGHY
$ 15,000.00 $ 15,000.00
$ 35,000.00 $ 35,000.00
$ 28,000.00 $ 28,000.00
$ - $ -
$ - $ -
$ - $ -
$ - $ -
$ 78,000.00 $ 78,000.00
$ 78,000.00 $ 78,000.00
5% 5%
81,900.00 81,900.00
BeSure HGHY
Water Repellent Oil Repellent
0.79 0.21 Plate Weight is 21 gram. Water is evaporated. What happens to the w
1.50% 1.50%
$ 1,000.00 $ 1,000.00
1,000.00 1,000.00
Yearly
240,000.00
240,000.00
600,000.00
300,000.00
1,380,000.00
Yearly
15,500.00
Yearly
1,440,000.00 Assumptions about Order Sizes (purchase and Sales), Frequency, CBM
1,200,000.00 Assumption Needs to be validated
Water is evaporated. What happens to the weight of oil and water repellent chemicals?
on CBM of raw materials. Info from PH or Supplier
.62. Now its 21.43 as per the document attached (page no. 41)
d on 1,054 per MMBTU. Now this is based on PKR 819 per MMBTU (for export oriented industry)
Inventory Movements 1 2
Opening Inventory - 10,628,571
Production During the Year 127,542,857 127,542,857
No. of Units Sold During the Year 116,914,286 126,657,143
Inventory Held 10,628,571 11,514,286
Product Costing
Raw Material - Pulp 1 2
Landed Cost - Per Tonn (USD) 900 900
Port Clearing Charges - Per Tonn (USD) 45 45
Transportation Cost - Per Tonn (PKR) 1,200 1,284
Transportation Cost - Per Tonn (USD) 7 8
Total Cost - Per Tonn (USD) 952 953
Total Cost - Per Gram (USD) 0.000952 0.000953
Cost per Unit of Product 0.020298 0.020304
Labour Cost 1 2
Labour Cost per Hour per Labour (PKR) 110 121
Labour Cost per Hour per Labour (USD) 0.6672 0.7125
No. of Labours per Shift 38 38
Total Labour Cost per Hour (USD) 25.35 27.07
Electricity 1 2
Consumption Per Hour (KW) 320 320
Cost per Unit (PKR / KW) 21.43 22.93
Cost per Unit (USD /KW) 0.1299 0.1349
Electricity Cost per Hour (USD) 41.5612 43.1752
Gas 1 2
Consumption Per Hour (Cubic Meter) 160 160
Cost per Unit (PKR / Cubic Meter) 28.98 31.01
Cost per Unit (USD / Cubic Meter) 0.1756 0.1824
Gas Cost per Hour (USD) 28.0990 29.1902
Water 1 2
Consumption Per Hour (Cubic Meter) 160 160
Cost per Unit (PKR / Cubic Meter) 28.98 31.01
Cost per Unit (USD / Cubic Meter) 0.1756 0.1824
Water Cost per Hour (USD) 28.0990 29.1902
Product Cost 1 2
Total Raw Material Cost 2,725,353.90 2,726,158.20
Total Other Input Costs (Electricity, Gas and Water) 727,328.86 755,574.64
Total Production Cost 3,452,682.77 3,481,732.84
Production Cost per Unit 0.0271 0.0273
Expenses
Administrative Expenses 1 2
Salaries (PKR) 42,600,000.00 46,860,000.00
Health Insurance (PKR) 880,000.00 941,600.00
Utilities (PKR) 1,380,000.00 1,476,600.00
Carriage Outward / Transportation Expenses (PKR) 1,440,000.00 1,540,800.00
Fire and Safety Insurance 1,200,000.00 1,284,000.00
Total Administrative Expenses (PKR) 47,500,000.00 52,103,000.00
Total Administrative Expenses (USD) 287,878.79 306,578.41
3 4 5 6 7 8
127,542,857 127,542,857 127,542,857 127,542,857 127,542,857 127,542,857
100% 100% 100% 100% 100% 100%
127,542,857 127,542,857 127,542,857 127,542,857 127,542,857 127,542,857
3 4 5 6 7 8
11,514,286 11,588,095 11,594,246 11,594,759 11,594,801 11,594,805
127,542,857 127,542,857 127,542,857 127,542,857 127,542,857 127,542,857
127,469,048 127,536,706 127,542,345 127,542,814 127,542,854 127,542,857
11,588,095 11,594,246 11,594,759 11,594,801 11,594,805 11,594,805
3 4 5 6 7 8
900 900 900 900 900 900
45 45 45 45 45 45
1,374 1,470 1,573 1,683 1,801 1,927
8 8 8 9 9 9
953 953 953 954 954 954
0.000953 0.000953 0.000953 0.000954 0.000954 0.000954
0.020310 0.020316 0.020323 0.020330 0.020338 0.020345
3 4 5 6 7 8
1,000 1,000 1,000 1,000 1,000 1,000
50 50 50 50 50 50
1,374 1,470 1,573 1,683 1,801 1,927
8 8 8 9 9 9
1,058 1,058 1,058 1,059 1,059 1,059
0.001058 0.001058 0.001058 0.001059 0.001059 0.001059
0.000846 0.000846 0.000846 0.000846 0.000847 0.000847
3 4 5 6 7 8
1,000 1,000 1,000 1,000 1,000 1,000
50 50 50 50 50 50
1,374 1,470 1,573 1,683 1,801 1,927
8 8 8 9 9 9
1,058 1,058 1,058 1,059 1,059 1,059
0.001058 0.001058 0.001058 0.001059 0.001059 0.001059
0.000225 0.000226 0.000226 0.000226 0.000226 0.000226
3 4 5 6 7 8
133 147 161 177 195 215
0.7609 0.8126 0.8679 0.9268 0.9898 1.0571
38 38 38 38 38 38
28.91 30.88 32.98 35.22 37.61 40.17
3 4 5 6 7 8
320 320 320 320 320 320
24.54 26.25 28.09 30.06 32.16 34.41
0.1402 0.1456 0.1513 0.1571 0.1632 0.1696
44.8519 46.5938 48.4032 50.2830 52.2357 54.2643
3 4 5 6 7 8
160 160 160 160 160 160
33.18 35.50 37.98 40.64 43.49 46.53
0.1895 0.1969 0.2045 0.2125 0.2207 0.2293
30.3238 31.5015 32.7248 33.9957 35.3159 36.6874
3 4 5 6 7 8
160 160 160 160 160 160
33.18 35.50 37.98 40.64 43.49 46.53
0.1895 0.1969 0.2045 0.2125 0.2207 0.2293
30.3238 31.5015 32.7248 33.9957 35.3159 36.6874
3 4 5 6 7 8
2,726,993.73 2,727,861.71 2,728,763.39 2,729,700.10 2,730,673.18 2,731,684.04
784,917.35 815,399.58 847,065.58 879,961.33 914,134.59 949,634.96
3,511,911.08 3,543,261.28 3,575,828.97 3,609,661.43 3,644,807.76 3,681,319.00
0.0275 0.0278 0.0280 0.0283 0.0286 0.0289
3 4 5 6 7 8
3 4 5 6 7 8
51,546,000.00 56,700,600.00 62,370,660.00 68,607,726.00 75,468,498.60 83,015,348.46
1,007,512.00 1,078,037.84 1,153,500.49 1,234,245.52 1,320,642.71 1,413,087.70
1,579,962.00 1,690,559.34 1,808,898.49 1,935,521.39 2,071,007.89 2,215,978.44
1,648,656.00 1,764,061.92 1,887,546.25 2,019,674.49 2,161,051.71 2,312,325.33
1,373,880.00 1,470,051.60 1,572,955.21 1,683,062.08 1,800,876.42 1,926,937.77
57,156,010.00 62,703,310.70 68,793,560.45 75,480,229.48 82,822,077.32 90,883,677.69
326,515.28 347,772.19 370,437.50 394,605.51 420,376.88 447,859.07
3 4 5 6 7 8
37,603.37 37,623.33 37,624.99 37,625.13 37,625.14 37,625.14
3 4 5 6 7 8
17,745.95 18,988.17 20,317.34 21,739.55 23,261.32 24,889.61
3 4 5 6 7 8
319,079.88 322,099.13 325,074.05 328,150.93 331,346.15 334,665.36
485,629.02 485,783.59 485,944.17 486,110.98 486,284.26 486,464.28
618,137.57 618,465.67 618,493.01 618,495.29 618,495.48 618,495.50
184,835.83 184,894.66 184,955.78 185,019.27 185,085.22 185,153.74
92,619.39 96,930.98 101,458.59 106,213.90 111,209.29 116,457.84
1,145,391.26 1,144,522.75 1,143,096.87 1,141,524.03 1,139,831.39 1,138,013.57
9 10
7% 7%
3% 3%
10% 10%
209.02 215.29
9 10
127,542,857 127,542,857
100% 100%
127,542,857 127,542,857
9 10
11,594,805 11,594,805
127,542,857 127,542,857
127,542,857 127,542,857
11,594,805 11,594,805
9 10
900 900
45 45
2,062 2,206
10 10
955 955
0.000955 0.000955
0.020353 0.020361
9 10
1,000 1,000
50 50
2,062 2,206
10 10
1,060 1,060
0.001060 0.001060
0.000847 0.000847
9 10
1,000 1,000
50 50
2,062 2,206
10 10
1,060 1,060
0.001060 0.001060
0.000226 0.000226
9 10
236 260
1.1289 1.2057
38 38
42.90 45.82
9 10
320 320
36.82 39.40
0.1762 0.1830
56.3716 58.5608
9 10
160 160
49.79 53.27
0.2382 0.2475
38.1122 39.5922
9 10
160 160
49.79 53.27
0.2382 0.2475
38.1122 39.5922
9 10
2,732,734.17 2,733,825.08
986,513.99 1,024,825.21
3,719,248.16 3,758,650.29
0.0292 0.0295
9 10
7,525,028.57 7,525,028.57
334,665.36 338,113.47
3,381,134.69 3,416,954.81
3,715,800.05 3,755,068.27
9 10
91,316,883.31 100,448,571.64
1,512,003.84 1,617,844.11
2,371,096.93 2,537,073.71
2,474,188.10 2,647,381.27
2,061,823.42 2,206,151.05
99,735,995.59 109,457,021.78
477,166.76 508,422.38
9 10
37,625.14 37,625.14
9 10
26,631.89 28,496.12
26,631.89 28,496.12
9 10
338,113.47 341,695.48
486,651.29 486,845.56
618,495.50 618,495.50
185,224.92 185,298.86
121,973.40 127,770.63
1,136,061.95 1,133,967.05
Army Welfare Trust
Biodegradable Tableware Manufacturing Facility
Financial Model - Financial Statements
Balance Sheet Check OK OK OK
Income Statement
Year 0 1 2
Sales Revenue 6,897,942.86 7,472,771.43
Cost of Goods Sold 3,164,959.20 3,455,133.30
Gross Profit - 3,732,983.65 4,017,638.12
Administrative Expenses 287,878.79 306,578.41
Advertising and Marketing Expenses 34,489.71 37,363.86
Repair and Maintenance Expenses 15,500.00 16,585.00
Depreciation Expense 124,188.82 124,188.82
Finance Lease Expenses 8,844.94 8,303.12
Profit Before Interest and Tax (PBIT) - 3,262,081.40 3,524,618.92
Interest Expense 283,372.91 214,580.36
Profit Before Tax (PBT) - 2,978,708.49 3,310,038.57
Tax Expense 863,825.46 959,911.18
Net Profit / Loss for the Year - 2,114,883.03 2,350,127.38
Balance Sheet
Year 0 1 2
Non-Current Assets
Plant and Machinery 2,283,582.00 2,180,820.81 2,078,059.62
Building 487,963.47 468,444.93 448,926.39
Furniture, Fixtures and Equipment 21,212.12 19,303.03 17,393.94
Right of Use Asset (Land) 84,237.48 84,237.48 84,237.48
Total Non-Current Assets 2,876,995.07 2,752,806.25 2,628,617.43
Current Assets
Cash and Bank 1,809,640.63 3,501,031.04
Inventory 773,060.56 799,803.33
Accounts Receivables 566,954.21 614,200.39
Deposits
Deferred Tax Asset
Investment in Working Capital 1,284,827.34 899,557.92 472,773.31
Total Current Assets 1,284,827.34 4,049,213.32 5,387,808.08
Total Assets 4,161,822.41 6,802,019.57 8,016,425.51
Equity
Share Capital Contribution 1,223,275.48 1,223,275.48 1,223,275.48
Retained Earnings - 2,114,883.03 4,465,010.41
Total Equity 1,223,275.48 3,338,158.50 5,688,285.89
Non-Current Liabilities
Working Capital Financing - Loan 1 1,284,827.34 899,557.92 472,773.31
PPE Financing - Loan 2 1,569,482.11 2,215,900.51 1,508,699.01
Finance Lease Liability 84,237.48 79,077.32 73,375.34
Total Non-Current Liabilities 2,938,546.93 3,194,535.75 2,054,847.67
Current Liabilities
Accounts Payable 184,724.68 184,779.20
Accrued Liabilities 84,600.64 88,512.75
Interest Payable
Income Tax Liability
Deferred Tax Liability
Total Current Liabilities - 269,325.32 273,291.95
Total Liabilities 2,938,546.93 3,463,861.07 2,328,139.62
Total Equity and Liabilities 4,161,822.41 6,802,019.57 8,016,425.51
Error Check - - -
Statement of Cashflows
Year 0 1 2
Cashflow from Operating Activities
Net Profit for the Year - 2,114,883.03 2,350,127.38
Depreciation Expenses 124,188.82 124,188.82
Increase / Decrease in Accounts Receivables - 566,954.21 - 47,246.18
Increase / Decrease in Inventory - 773,060.56 - 26,742.77
Increase / Decrease in Accounts Payables 184,724.68 54.52
Increase / Decrease in Accrued Liabiliities 84,600.64 3,912.12
Working Capital Investment 1,284,827.34
Cashflow from Operating Activities 1,284,827.34 1,168,382.40 2,404,293.88
3 4 5 6 7
7,520,673.81 7,524,665.67 7,524,998.33 7,525,026.05 7,525,028.36
3,507,154.30 3,540,242.04 3,572,854.05 3,606,584.55 3,641,612.54
4,013,519.51 3,984,423.63 3,952,144.28 3,918,441.50 3,883,415.82
326,515.28 347,772.19 370,437.50 394,605.51 420,376.88
37,603.37 37,623.33 37,624.99 37,625.13 37,625.14
17,745.95 18,988.17 20,317.34 21,739.55 23,261.32
124,188.82 124,188.82 124,188.82 124,188.82 124,188.82
7,704.41 7,042.84 6,311.80 5,504.01 4,611.39
3,499,761.68 3,448,808.29 3,393,263.83 3,334,778.48 3,273,352.27
138,374.97 67,353.93 30,274.33 - -
3,361,386.71 3,381,454.36 3,362,989.50 3,334,778.48 3,273,352.27
974,802.14 980,621.76 975,266.96 967,085.76 949,272.16
2,386,584.56 2,400,832.59 2,387,722.55 2,367,692.72 2,324,080.11
3 4 5 6 7
3 4 5 6 7
- - - - -
8 9 10
7,525,028.55 7,525,028.57 7,525,028.57
3,677,999.79 3,715,800.05 3,755,068.27
3,847,028.76 3,809,228.52 3,769,960.30
447,859.07 477,166.76 508,422.38
37,625.14 37,625.14 37,625.14
24,889.61 26,631.89 28,496.12
124,188.82 124,188.82 124,188.82
3,625.05 2,535.15 1,330.80
3,208,841.07 3,141,080.76 3,069,897.03
- - -
3,208,841.07 3,141,080.76 3,069,897.03
930,563.91 910,913.42 890,270.14
2,278,277.16 2,230,167.34 2,179,626.89
8 9 10
8 9 10
- - -
2 3 4
3 4 5 6 7
$ 255,160.83 $ 255,160.83 $ 255,160.83 $ 255,160.83 $ -
$ 207,934.03 $ 218,850.57 $ 230,340.23 $ 242,433.09 $ -
$ 47,226.79 $ 36,310.25 $ 24,820.60 $ 12,727.74 $ -
691,623.89 472,773.31 242,433.09 - -
2 3 4
3 4 5 6 7
$ 205,730.10 $ 205,730.10 $ 205,730.10 $ 205,730.10 $ 205,730.10
$ 136,622.11 $ 143,794.77 $ 151,344.00 $ 159,289.56 $ 167,652.26
$ 69,107.99 $ 61,935.32 $ 54,386.10 $ 46,440.54 $ 38,077.84
$ 1,179,720.47 $ 1,035,925.70 $ 884,581.70 $ 725,292.14 $ 557,639.88
2 3 4
3 4 5 6 7
$ 460,890.92 $ 460,890.92 $ 460,890.92 $ 460,890.92 $ 205,730.10
$ 344,556.15 $ 362,645.35 $ 381,684.23 $ 401,722.65 $ 167,652.26
$ 116,334.78 $ 98,245.58 $ 79,206.70 $ 59,168.28 $ 38,077.84
$ 1,871,344.36 $ 1,508,699.01 $ 1,127,014.79 $ 725,292.14 $ 557,639.88
3 4 5 6 7
3 4 5 6 7
14,005.10 14,005.10 14,005.10 14,005.10 14,005.10
6,300.69 6,962.26 7,693.30 8,501.09 9,393.71
7,704.41 7,042.84 6,311.80 5,504.01 4,611.39
67,074.65 60,112.39 52,419.10 43,918.00 34,524.30
If interest rates are different on WC financing and PPE financing, the cost of debt calculations shall change accordingly.
Similarly, changes in tax rate (e.g. EPZ rates in first 5 years) will affect cost of debt calculations.
Average D/E ratio may not be acceptable for bank.
D/E ratio for Beta Calculation (Total Liabilities or Interest Bearing Liabilities)? Because non-interest bearing liabilities still ch
D/E Ratio for WACC (Total Liabiliities or Interest Bearing Liabilities) i.e. no tax benefit on non-interest bearing liabilities
Optimal D/E Ratio Calculations Needed.
4 5
8 9 10
$ - $ - $ -
$ - $ - $ -
$ - $ - $ -
- - -
4 5
8 9 10
$ 205,730.10 $ 205,730.10 $ 205,730.10
$ 176,454.01 $ 185,717.84 $ 195,468.03
$ 29,276.09 $ 20,012.26 $ 10,262.07
$ 381,185.87 $ 195,468.03 $ -
4 5
8 9 10
$ 205,730.10 $ 205,730.10 $ 205,730.10
$ 176,454.01 $ 185,717.84 $ 195,468.03
$ 29,276.09 $ 20,012.26 $ 10,262.07
$ 381,185.87 $ 195,468.03 -
8 9 10
8 9 10
14,005.10 14,005.10 14,005.10
10,380.05 11,469.95 12,674.30
3,625.05 2,535.15 1,330.80
24,144.25 12,674.30 -
non-interest bearing liabilities still change the leverage or credit risk profile of the company.
on non-interest bearing liabilities
Army Welfare Trust
Biodegradable Tableware Manufacturing Facility
Financial Model - Assumptions
3 4 5 6 7 8
5,217,417.37 7,392,238.76 9,516,696.85 12,001,650.14 14,442,218.00 16,836,121.75
3,232,456.32 3,904,320.24 4,284,972.55 4,606,755.18 4,725,855.39 4,696,571.64
6,450,504.11 13,842,742.87 23,359,439.72 35,361,089.86 49,803,307.86 66,639,429.61
3,241,955.28 7,146,275.53 11,431,248.07 16,038,003.25 20,763,858.64 25,460,430.27
0.24 0.87 1.45 1.95 2.45 2.96
0.00 0.83 1.67 2.48 3.39 4.42
9 10
19,180,959.58 21,474,195.89
4,561,435.99 4,353,519.83
85,820,389.19 107,294,585.08
30,021,866.27 34,375,386.10
3.47 4.00
5.58 6.90