PROJECT COST (Rs.

In 000) SCHEDULE OF FIXED ASSETS

Land 4,000,000 Interest Preliminary
Buildings 120,000,000 Cost During Cnst Expenses
Foreign Machinery 45,000,000 Land 4,000,000
Local Macchinery 5,000,000 Buildings 120,000,000 2,556,000
Freight-Machinery 1,000,000 Machinery 53,000,000 3,556,250
Customs Duty 0 Vehicles 7,000,000 262,500
Installation Cost 2,000,000 184,000,000 6,374,750 0
Vehicles 7,000,000
Interest During Constr. 10,000,000
Preliminary Expenses 31,000,000
Contingencies 20,000,000
Fixed Cost 245,000,000
Initial Working Capital 90,000,000
Total Project Cost 335,000,000
FINANCING PLAN
Debt (60%) 201,000,000
Equity (40%) 134,000,000 Interest
335,000,000 During
Rate Months Constr.
PICIC (Fcy Loan) 45,000,000 14.75% 6 3,318,750
IDBP (Lcy Loan) 5,000,000 14.25% 4 237,500
Orix Leasing 7,000,000 15.00% 3 262,500
MCB (Wrk Cap Loan) 90,000,000 15.30% 2 2,295,000
147,000,000 0
UBL (Misc Cap Expnd) 54,000,000 14.20% 4 2,556,000
Total Debt 201,000,000 8,669,750
INITIAL WORKING CAPITAL
Cash 1,000,000
Accts Receivable 2,782,859
Inventory 89,241,170
Others
Total Current Assets 93,024,029
Current Liabilities
Accts Payable 2,075,868
Accruals 500,000
S T Bank Loans 0
2,575,868
Initial Net Work Cap 90,448,162

PRELIMINARY & PRE-PRODUCTION EXPENSES

Project examinaton Fee 1,005,000
Loan Commitment Fee 251,250
Loan Documentation 251,250
Feasibility Studies 300,000
Company Formation /Regn 500,000
Legal Counsel Fee 500,000
Auditor's Fee 300,000
Salaries Wages 25,000,000
Trial Run Losses/wastages 2,500,000
30,607,500
 Annual Annual
Total Dercn Deprecn
ContingencieCost Rate Expense

10,000,000 132,556,000 5% 6,627,800

10,000,000 66,556,250 10% 6,655,625
7,262,500 20% 1,452,500
206,374,750 14,735,925
 STATEMENT OF CASH FLOW
INFLOWS End of Constr Year-1 Year-2 Year-3 Year-4
Operating Profit 42,432,003 54,318,094 63,035,810 67,738,519
Add: Amortiza
Add: Deprcn 14,735,925 14,735,925 14,735,925 14,735,925
C F From Oprns 57,167,928 69,054,019 77,771,735 82,474,444
Current Liabt
Accts Payable 2,075,868 26,986,278 4,151,735 4,151,735 2,075,868
Accruals 500,000 9,500,000 10,000,000 10,000,000 30,000,000
Financing
Long Term Debt 111,000,000
Equity 134,000,000
S T Bank Loan 90,000,000 45,000,000 -1,000,000 0 16,000,000
337,575,868 138,654,205 82,205,754 91,923,470 130,550,312
OUT-FLOWS End of Constr Year-1 Year-2 Year-3 Year-4
Current Assets
Accts Receivable (2,782,859) (36,323,630) (7,469,779) (5,858,650) (3,075,791)
Inventory (89,241,170) (55,444,130) (17,889,931) (11,805,439) (8,940,741)
Other Cur Ast (500,000) (250,000) (375,000) (562,500) (843,750)
Fixed Assets (245,000,000)
Payment of Int (29,838,000) (34,919,638) (32,963,275) (31,159,913)
Repayment Debt (12,425,000) (12,425,000) (12,425,000) (12,425,000)
Repayment ST
Payment of Div
(337,524,029) (134,280,760) (73,079,348) (63,614,864) (56,445,195)
51,838 4,373,445 9,126,407 28,308,606 74,105,117
Cash Bal-Opn 0 1,000,000 5,373,445
Cash Bal-Ending 1,000,000 5,373,445 14,499,852
ASSUMPTIONS TO THE PROJECTED INCOME STATEMENTS
Number of Spindles Installed 20,160
Annual output per Spindle ( Kgs) 306
Total Annual Output ( Kgs) 6,167,000
Construction (All figures in Kgs.)
Period Year-1 Year-2 Year-3
Capacity Utilization 5% 70% 80% 90%
Output ( Kgs. ) 308,350 4,316,900 4,933,600 5,550,300
Opening Inventory 0 15,418 215,845 246,680
Ending Inventory(%) 5% 5% 5% 5%
Ending Inventory 15,418 215,845 246,680 277,515
Output Sold 292,933 4,116,473 4,902,765 5,519,465

Cotton Consumed-Kgs 366,937 5,137,111 5,870,984 6,604,857

Wastage 19%

Manufacturing Cost Unit Cost Construction ( All figures in Rupees)

(Rs./Kg of out put) Rs Period Year-1 Year-2 Year-3
Cost of 1 Kg of Cotton 111.00 40,729,952 570,219,321 651,679,224 733,139,127
Packing Material 2.55 787,399 11,023,580 12,598,377 14,173,174
Stores & Spares 3.10 957,200 13,400,794 15,315,193 17,229,592
Salaries & Wages 10.64 3,279,702 45,915,832 52,475,237 59,034,641
Fuel & Power 17.35 5,348,366 74,877,118 85,573,849 96,270,580
Insurance 0.42 131,039 1,834,548 2,096,626 2,358,705
Repair &Maint 0.28 87,064 1,218,896 1,393,024 1,567,152
Doubling Charges 1.13 347,944 4,871,215 5,567,102 6,262,990
Misc OH 0.13 40,794 571,112 652,699 734,287
Depreciation 6.00 2,455,988 14,735,925 14,735,925 14,735,925
Cost of Goods Mfg 54,165,446 738,668,341 842,087,257 945,506,174
Deprcn at market rate 6.00 1,850,100 25,901,400 29,601,600 33,301,800
Add: Begin Inv. 2,708,272 36,933,417 42,104,363
Cost of Goods Avail for Sale 54,165,446 741,376,613 879,020,674 987,610,536
Less: Ending Inventory 5.0% 2,708,272 36,933,417 42,104,363 47,275,309
C O G S 51,457,173 704,443,196 836,916,311 940,335,228

SELLING & ADMN EXPENSES Construction

Unit Cost Period Year-1 Year-2 Year-3
Distribution cost 4.22 1,301,819 18,225,469 20,829,107 23,432,745
Administrative Exp 1.99 613,767 8,592,731 9,820,264 11,047,797
Other Opr Exp 1.95 602,598 8,436,377 9,641,573 10,846,770
Selling & Admn Exp 2,518,184 35,254,576 40,290,945 45,327,313

INVENTORIES
Raw Materials 15% 85,532,898 97,751,884 109,970,869 116,080,362
Finished Goods 2,708,272 36,933,417 42,104,363 47,275,309
Stores & Spares 1,000,000 10,000,000 10,500,000 11,025,000
89,241,170 144,685,301 162,575,232 174,380,670

Accounts Receivable 5% 2,782,859 39,106,489 46,576,268 52,434,918

Accounts Payable 5% 2,075,868 29,062,145 33,213,880 37,365,615

Construction (All figures in Rupees)

(Selling Price (Rs./Kg)) 190.00 Period Year-1 Year-2 Year-3
Sales Revenue 55,657,175 782,129,775 931,525,350 1,048,698,350
Less: C O G S 51,457,173 704,443,196 836,916,311 940,335,228
Gross Profit 4,200,002 77,686,579 94,609,039 108,363,122
Admn & Selling Exp 2,518,184 35,254,576 40,290,945 45,327,313
Operating Profit 1,681,818 42,432,003 54,318,094 63,035,810
Less : Amortization 6,200,000 6,200,000 6,200,000
1,681,818 36,232,003 48,118,094 56,835,810
Less: Interest Expense 29,838,000 34,919,638 32,963,275
EBT 6,394,003 13,198,457 23,872,535
Taxes 35% 2,237,901 4,619,460 8,355,387
Net Profit 4,156,102 8,578,997 15,517,148
Dividends 1,000,000
Retained Earnings 3,156,102 8,578,997 15,517,148
E. P. S. 0.31 0.64 1.16
 Year-4
95%
5,858,650
277,515
5%
292,933
5,843,233

6,971,794

Year-4
773,869,079
14,960,573
18,186,792
62,314,344
101,618,946
2,489,744
1,654,216
6,610,934
775,080
14,735,925
997,215,632
35,151,900
47,275,309
1,044,490,940
49,860,782
994,630,159

Year-4
24,734,564
11,661,564
11,449,368
47,845,497
 121,884,380
49,860,782
11,576,250
183,321,411

55,510,709

39,441,483

Year-4
1,110,214,175
994,630,159
115,584,016
47,845,497
67,738,519
6,200,000
61,538,519
31,159,913
30,378,607
10,632,512
19,746,095

19,746,095
1.47
 PROJECTED BALANCE SHEETS (Rs. In 000)
End of
A S S E T S Construction Year-1 Year-2 Year-3 Year-4
Current Assets
Cash 1,000,000 5,373,445 8,060,168 12,090,251 18,135,377
Accts Recv 2,782,859 39,106,489 46,576,268 52,434,918 55,510,709
Inventory 89,241,170 144,685,301 162,575,232 174,380,670 183,321,411
Other C A 500,000 750,000 1,125,000 1,687,500 2,531,250
Total Current Assets 93,524,029 189,915,234 218,336,667 240,593,339 259,498,747
Fixed Assets
Total Fixed Assets 214,000,000 214,000,000 214,000,000 214,000,000 214,000,000
Less: Accm. Deprcn 14,735,925 29,471,850 44,207,775 58,943,700
Net Fixed Assets 214,000,000 199,264,075 184,528,150 169,792,225 155,056,300
Preliminary Expenses 31,000,000 24,800,000 19,840,000 15,872,000 12,697,600
TOTAL ASSETS 338,524,029 413,979,309 422,704,817 426,257,564 427,252,647
LIABILITIES AND EQU Construction Year-1 Year-2 Year-3 Year-4
Current Liabilities
Accounts Payable 2,075,868 29,062,145 33,213,880 37,365,615 39,441,483
Accruals 500,000 10,000,000 20,000,000 30,000,000 60,000,000
S Term Bank Loans 90,000,000 135,000,000 134,000,000 134,000,000 150,000,000
Curr Mat. Of L T Debt 12,425,000 12,425,000 12,425,000 12,425,000 12,425,000
Total Current Liabiliti 105,000,868 186,487,145 199,638,880 213,790,615 261,866,483
Long Term Debt 98,575,000 86,150,000 73,725,000 61,300,000 48,875,000
Equity
Paid-up Capital 134,000,000 134,000,000 134,000,000 134,000,000 134,000,000
Retained Earnings 3,156,102 8,578,997 15,517,148 19,746,095
Total Equity 134,000,000 137,156,102 142,578,997 149,517,148 153,746,095
Total Debt & Equity 337,575,868 409,793,247 415,942,877 424,607,763 464,487,577
Surplus/(Defecit) 948,162 4,186,063 6,761,940 1,649,802 -37,234,930
Book Value/Share 10.00 10.24 10.64 11.16 11.47
 Out-put
No. of Actual Per one
Spindles Output Kg Spindle Kg
Babri Cotton Mills Ltd 53,040 3,774,673 71.17
Colony Thal Textile 21,132 5,730,837 271.19
Colony Mills Ltd 177,204 55,126,788 311.09
Gadoon Textile 190,744 40,813,419 213.97
Maqbool -1 18,336 4,816,825 262.70
Maqbool -2 27,864 3,730,163 133.87
Shahzad Textile 32,663,699
Fazal Textile 59,150 22,208,368 375.46
Ishtiaq 17,280 3,123,669 180.77
Reliance Cotton Spinning 26,965 9,402,150 348.68
COMPARISON OF MANUFACTURING COST AND ADMIN & SELLING EXPENSES
RELIANCE COTTON ISHTIAQ TEXTILE FAZAL TEXTILE MILLS
SPINNING MILLS LIMITED MILLS LIMITED
Output in Kgs Rate Output in Kgs Rate Output in Kgs Rate
9,402,150 Rs./Kg. 3,123,669 Rs./Kg. 22,208,368 Rs./Kg.
R. M. Consumed 948,811,312 100.9 433,066,743 138.6 2,382,970,000 107.3
Packing Material 22,408,983 2.4 2,713,402 0.9 154,309,000 6.9
Stores & Spares 35,592,755 3.8 4,321,285 1.4 3,935,000 0.2
Salaries & Wages 108,367,459 11.5 36,690,940 11.7 216,102,000 9.7
Fuel & Power 114,589,865 12.2 58,072,037 18.6 324,485,000 14.6
Insurance 7,562,107 0.8 1,373,449 0.4 2,914,000 0.1
Repair &Maint 10,032,445 1.1 335,200 0.1 13,259,000 0.6
Doubling Charges 9,457,234 1.0 1,821,823 0.6 123,345,000 5.6
Misc OH 6,990,258 0.7 250,000 0.1 2,826,000 0.1
Depreciation 45,990,105 4.9 17,545,145 5.6 61,344,000 2.8
1,309,802,523 139.3 559,313,693 178.1 3,285,489,000 147.9

Distribution cost 105,372,722 11.2 5,591,359 1.8 48,251,000 2.2

Administrative Exp 32,990,920 3.5 4,304,762 1.4 51,064,000 2.3
Other Opr Exp 20,993,291 2.2 375,000 0.1 34,013,000 1.5
subtotal 159,356,933 16.9 10,271,121 3.3 133,328,000 6.0
COLONY THAL GADOON TEXTILE BABRI COTTON

Output in Kgs Rate Output in Kgs Rate Output in Kgs Rate

5,730,837 Rs./Kg. 40,813,419 Rs./Kg. 3,774,673 Rs./Kg.
300,488,526 52.4 5,801,994,800 142.2 602,393,000 159.6
- 196,668,531 4.8 17,717,000 4.7
12,103,909 2.1 209,622,605 5.1 20,444,000 5.4
33,424,235 5.8 618,661,037 15.2 111,273,000 29.5
52,308,634 9.1 1,238,613,004 30.3 125,986,000 33.4
578,976 0.1 15,066,098 0.4 4,094,000 1.1
1,215,367 0.2 4,661,141 0.1 8,170,000 2.2
- 1,827,896 0.0 -
- 6,910,604 0.2 -
14,998,283 2.6 264,268,349 6.5 32,942,000 8.7
415,117,930 72.4 8,358,294,065 204.8 923,019,000 244.5

41,250 0.0 280,164,000 6.9 2,615,000 0.7

9,323,949 1.6 54,333,286 1.3 27,236,000 7.2
- 91,931,996 2.3 -
9,365,199 1.6 426,429,282 10.4 29,851,000 7.9
MAQBOOL Textile SHAHZAD TEXTILE COLONY MILLS LTD

Output in Kgs Rate Output in Kgs Rate Output in Kgs Rate

8,546,988 Rs./Kg. 32,663,699 Rs./Kg. 59,435,325 Rs./Kg.
1,369,255,311 160.2 2,132,366,577 65.3 6,648,142,000 111.9
27,431,101 3.2 52,950,873 1.6 -
20,784,765 2.4 59,636,657 1.8 210,018,000 3.5
125,124,130 14.6 217,462,349 6.7 508,046,000 8.5
258,939,859 30.3 272,471,948 8.3 775,506,000 13.0
4,855,375 0.6 8,695,344 0.3 33,777,000 0.6
2,266,699 0.3 5,243,122 0.2 7,250,000 0.1
- - 73,092,000 1.2
40,485 0.0 1,860,044 0.1 5,690,000 0.1
57,252,762 6.7 54,768,915 1.7 339,583,000 5.7
1,865,950,487 218.3 2,805,455,829 85.9 8,601,104,000 144.7

43,706,064 5.1 41,626,536 1.3 256,633,000 4.3

34,669,533 4.1 64,881,163 2.0 90,828,000 1.5
8,057,347 0.9 14,115,104 0.4 193,420,000 3.3
86,432,944 10.1 120,622,803 3.7 540,881,000 9.1
CONSOLIDATED
FOR NINE SPINNING MILLS
Output in Kgs Rate
185,699,128 Rs./Kg.
20,619,488,269 111.04
474,198,890 2.55
576,458,976 3.10
1,975,151,150 10.64
3,220,972,347 17.35
78,916,349 0.42
52,432,974 0.28
209,543,953 1.13
24,567,391 0.13
888,692,559 4.79
28,120,422,858 151.4

784,000,931 4.22
369,631,613 1.99
362,905,738 1.95
1,516,538,282 8.2
LOAN-1: PICIC (Fcy Loan) LOAN-2:
Amount of Loan: 45,000,000 Amount of Loan:
Rate of Interest: 14.75% Rate of Interest:
Number of Installments: 9 Number of Installments:
Amount of Annual Installment: 5,000,000 Amount of Annual Installment:
Current Loan Balance
Year Maturity under Payment Payment Year
Ending Amount in Current Long of Install. of Interest Ending
December Outstanding Liability Term Debt of Principal on loan December
Year-0 45,000,000 5,000,000 40,000,000 0 3,318,750 Year-0
Year-1 40,000,000 5,000,000 35,000,000 5,000,000 6,637,500 Year-1
Year-2 35,000,000 5,000,000 30,000,000 5,000,000 5,900,000 Year-2
Year-3 30,000,000 5,000,000 25,000,000 5,000,000 5,162,500 Year-3
Year-4 25,000,000 5,000,000 20,000,000 5,000,000 4,425,000 Year-4
Year-5 20,000,000 5,000,000 15,000,000 5,000,000 3,687,500 Year-5
Year-6 15,000,000 5,000,000 10,000,000 5,000,000 2,950,000 Year-6
Year-7 10,000,000 5,000,000 5,000,000 5,000,000 2,212,500 Year-7
Year-8 5,000,000 5,000,000 0 5,000,000 1,475,000 Year-8
Year-9 0 0 5,000,000 737,500 Year-9
Year-10
45,000,000
 IDBP (Lcy Loan) LOAN-3: Orix Leasing
mount of Loan: 5,000,000 Amount of Loan:
te of Interest: 14.25% Rate of Interest:
umber of Installments: 8 Number of Installments:
mount of Annual Installment: 625,000 Amount of Annual Installment:
Current Loan Balance Current
Maturity under Payment Payment Year Maturity
Amount in Current Long of Install. of Interest Ending Amount in Current
Outstanding Liability Term Debt of Principal on loan December Outstanding Liability
5,000,000 625,000 4,375,000 0 Year-0 7,000,000 1,400,000
4,375,000 625,000 3,750,000 625,000 712,500 Year-1 5,600,000 1,400,000
3,750,000 625,000 3,125,000 625,000 623,438 Year-2 4,200,000 1,400,000
3,125,000 625,000 2,500,000 625,000 534,375 Year-3 2,800,000 1,400,000
2,500,000 625,000 1,875,000 625,000 445,313 Year-4 1,400,000 1,400,000
1,875,000 625,000 1,250,000 625,000 356,250 Year-5 0 1,400,000
1,250,000 625,000 625,000 625,000 267,188 Year-6
625,000 625,000 0 625,000 178,125 Year-7
625,000 625,000 89,063 Year-8
Year-9
5,000,000
 LOAN-4: UBL (Misc Cap Expnd)
7,000,000 Amount of Loan: 54,000,000
15.00% Rate of Interest: 14.20%
5 Number of Installments: 10
1,400,000 Amount of Annual Installment: 5,400,000
Loan Balance Current Loan Balance
under Payment Payment Year Maturity under Payment
Long of Install. of Interest Ending Amount in Current Long of Install.
Term Debt of Principal on loan December Outstanding Liability Term Debt of Principal
5,600,000 0 Year-0 54,000,000 5,400,000 48,600,000 0
4,200,000 1,400,000 1,050,000 Year-1 48,600,000 5,400,000 43,200,000 5,400,000
2,800,000 1,400,000 840,000 Year-2 43,200,000 5,400,000 37,800,000 5,400,000
1,400,000 1,400,000 630,000 Year-3 37,800,000 5,400,000 32,400,000 5,400,000
0 1,400,000 420,000 Year-4 32,400,000 5,400,000 27,000,000 5,400,000
1,400,000 210,000 Year-5 27,000,000 5,400,000 21,600,000 5,400,000
0 0 Year-6 21,600,000 5,400,000 16,200,000 5,400,000
0 0 0 Year-7 16,200,000 5,400,000 10,800,000 5,400,000
0 0 0 Year-8 10,800,000 5,400,000 5,400,000 5,400,000
0 0 0 Year-9 5,400,000 5,400,000 0 5,400,000
7,000,000 Year-10 5,400,000 5,400,000
54,000,000
 Int rate on Wrk Cap Loan

CONSOLIDATED FIGURES FOR ALL LOANS

Current Loan Balance

Payment Year Maturity under Payment Payment
of Interest Ending Amount in Current Long of Install. of Interest
on loan December Outstanding Liability Term Debt of Principal on loan
Year-0 111,000,000 12,425,000 98,575,000 0
7,668,000 Year-1 98,575,000 12,425,000 86,150,000 12,425,000 16,068,000
6,901,200 Year-2 86,150,000 12,425,000 73,725,000 12,425,000 14,264,638
6,134,400 Year-3 73,725,000 12,425,000 61,300,000 12,425,000 12,461,275
5,367,600 Year-4 61,300,000 12,425,000 48,875,000 12,425,000 10,657,913
4,600,800 Year-5 48,875,000 12,425,000 37,850,000 12,425,000 8,854,550
3,834,000 Year-6 37,850,000 11,025,000 26,825,000 11,025,000 7,051,188
3,067,200 Year-7 26,825,000 11,025,000 15,800,000 11,025,000 5,457,825
2,300,400 Year-8 15,800,000 11,025,000 5,400,000 11,025,000 3,864,463
1,533,600 Year-9 5,400,000 5,400,000 0 10,400,000 2,271,100
766,800 Year-10 - 5,400,000 0 17,400,000 766,800
 15.30% 90,000,000 135,000,000 134,000,000 134,000,000 ###

Payment Total
of Interest Interest
Wrk Cap Expense

13,770,000 29,838,000
20,655,000 34,919,638
20,502,000 32,963,275
20,502,000 31,159,913
8,854,550
7,051,188
5,457,825
3,864,463
2,271,100
766,800