Sample Company

Balance Sheet
Assets

2003

2004

2005

Cash & Bank Balances

1,075,698

566,636

752,112

Accounts Receivables-Trade

1,577,228

2,038,016

3,052,553

670,752

2,151,482

Other Receivables

425,974

Advance Income Tax

67,493

Deposits & Prepayments

Cash Equivalent Assets
Stores & Spares
Raw Material
Finished Goods

152,084

78,078

144,451

3,298,477

3,353,482

6,100,598

24,227

22,184

16,366

188,921

158,878

495,827

2,638,060

4,378,087

3,877,975

Goods in Transit

###

2,234,365

Total Inventory

2,851,208

4,559,149

6,624,533

TOTAL CURRENT ASSETS

6,149,685

7,912,631

12,725,131

Land & Building

2,361,217

2,642,921

2,892,099

Electric Installation

2,117,236

3,941,056

4,275,242

Furniture & Fixtures

728,818

973,254

Machinery & Equipment

221,658

261,041

Transportation Equipment

245,187

235,945

Assets subject to Finance Lease

334,614

410,747

Intangible Assets

229,713

243,088

1,083,241
261,681
217,774
440,283
267,597

Other Fixed Assets

1,880,287

544,065

656,480

Gross Fixed Assets

8,118,730

9,252,117

10,094,397

Less: Accumulated Depreciation

3,290,573

3,852,835

4,506,557

Total Fixed Assets - Net

4,828,157

5,399,282

5,587,840

Long-Term Investments - in Affiliates

1,877,001

1,872,001

1,872,001

91,591

83,514

Long-Term Investments - Others

Long-Term Deposits & Prepayments
TOTAL NON-CURRENT ASSETS
TOTAL LONG-TERM ASSETS
TOTAL ASSETS

89,879

30,332

76,700

48,244

1,998,924
6,827,081
12,976,766

2,032,215
7,431,497
15,344,128

2,010,124
7,597,964
20,323,095

Balance Sheet
Laibilities

2003

Overdraft/Export Refinance

2004
-

Current Maturities - LTD

24,061

Total Current Maturities

24,061

Short Term Loans

Accounts Payable - Trade

6,111,590

Tax Accruals

50,330
3,666,350

6,577,198

7,481,815

7,730

3,598

894,178

Total Accruals

894,178

Other Current Liabilities

TOTAL CURRENT LIABILITIES

7,029,829

Liabilities against Assets subject to Finance Lease

77,862

Other Non-Current Liabilities (staff gratuity)

17,257

TOTAL NON-CURRENT LIABILITIES

TOTAL LIABILITIES
Issued, Subscribed, Paid-up - Common Stock
Capital Reserves

NET WORKING CAPITAL

46,797

42,791
126,418

752,564
11,951,059
16,270
52,693

95,119

169,209

68,963

8,212,224

12,020,022

350,658

###

350,658

2,233,026

207,002

TOTAL LIABILITIES & NETWORTH

705,767

11,328
###
8,043,015

7,124,948

2,026,024

Revenue Reserves
Retained Earnings
TOTAL NETWORTH

50,330

58,268

Interest Payable
Dividends Payable

2005
###

58,268
1,396,221

2,233,026

3,268,134
5,851,818

4,548,220
7,131,904

5,719,389
8,303,073

12,976,766

15,344,128

20,323,095

(880,144)

(130,384)

774,072

INCOME STATEMENT
2003
Net Sales

2004

77,822,817.000

Net Cost of Goods Sold

72,049,466

GROSS PROFIT

2005

79,180,350.000

98,526,616.000

72,973,109

89,684,584

5,773,351

6,207,241

8,842,032

General & Administration Expenses

3,231,589

3,207,558

3,936,868

Depreciation - General & Administration

Total Operating Expenses

562,772
3,794,361

598,449
3,806,007

672,898
4,609,766

TOTAL OPERATING PROFIT

1,978,990

2,401,234

4,232,266

Add: Other Income & Expenses

Interest Income on Investment

78,052

Exchange Difference

32,272

Miscellaneous Other Income

Other Expenses

137,929
(27,605)
1,951,385

NET OPERATING PROFIT

(9,780)

(120,723)

12,017
150,510
(148,273)
2,252,961

7,270
265,611
(379,064)
3,853,202

Less:
Interest Expenses-Short Term

1,474

11,200

137,899

Interest Expenses-Long Term

10,320

10,379

8,369

Charges, Commission etc.

Total Interest Expenses

39,686
51,480

42,458
64,037

63,950
210,218

Less:
Depreciation
Amortization
Total Depreciation & Amm Expense
Profit Before Tax
PROFIT BEFORE INT & TAX (EBIT)
PROFIT BEFORE INT. TAX DEP & AMM. (EBITDA
Taxation
PROFIT AFTER TAX & EXTRA ORDINARY ITEMS

65,176

82,292

138,172

43,363
108,539
1,791,366
1,842,846
1,951,385

40,934
123,226
2,065,698
2,129,735
2,252,961

138,172
3,504,812
3,715,030
3,853,202

644,908

680,910

1,191,914

1,146,458

1,384,788

2,312,898

Add/(Less): Extra-ordinary Gain/(Loss)

NET PROFIT

1,146,458

###

1,384,788

2,312,898

2004

2005

CASH FLOW REPORT

2003
Net Operating Cash Flow
Capital Expenditure

4,101,876
(814,005)

Free Operating Cash Flow

Net Cash Flow from Investing Activities

3,287,871
(1,776,193)

370,392
(1,118,137)
(747,745)
47,432

48,042
(816,319)
(768,277)
29,674

(Other than Capex)

Net Cash Flow from Financing Activities
Net Increase/Decrease in Cash and Cash Equi.
Openinig Balance of Cash and Cash Equi.
Cash and Cash Equi. At the End of the Year

(914,744)

(1,204,970)

(1,346,050)

596,934

(1,905,283)

(2,084,653)

478,764

1,075,698

1,075,698

(829,585)

(829,585)
(2,914,238)

ENTERPRIZE VALUE= MARKET VALUE OF EQUITY +PREFERANCE SHARES+NET DEBT+MINORITY INTEREST

2003

2004

2005

BORROWINGS
Current Maturities - LTD

24,061

Short Term Loans

Total Long Term Debt

Total Debt
Enterprize Value
Capital Employed

58,268
1,396,221

50,330
3,666,350

95,119
119,180

169,209
1,623,698

68,963
3,785,643

(2,477,981)
5,970,998

(1,028,468)
8,755,602

(1,613,639)
12,088,716

Financial Ratios
Ratios

2003

2004

2005

Gross Cash Flow/ Total debt

500.87%

-117.34%

-55.07%

Free Cash Flow/ Total Debt

902.58%

-51.09%

-76.98%

Current Ratio

0.87

0.98

1.06

Quick Ratio

0.47

0.42

0.51

Net Income/ Sales

1.47%

1.75%

2.35%

Gross Income/Sales

7.42%

7.84%

8.97%

Total Assets/ Total Liabilities (times)

1.821

1.868

1.691

Debt:Equity

0.02

0.23

0.46

10 CASH FLOW/EAT

93.83%

-59.91%

-126.00%

11 Enterprize Value

1,299,056

1,298,775

1,298,526

12 EV/EBIT (times)
13 EV/EBITDA (times)
14 EV/Sales
15 EV/Free Cash Flows (times)

-1.34

-0.48

-0.43

-1.27

-0.46

-0.42

-3.18%

-1.30%

-1.64%

-2.30

16 EV/Capital Employed

1.24

0.55

-11.75%

-13.35%

19.20%

15.82%

19.13%

18 SG&A Expenses

-41.50%

17 EAT/Capital Employed

4.15%

4.05%

4.00%

19 Depreciation, Amortization

0.72%

0.76%

0.68%

20 Operating Profit Margin

4.88%

4.81%

4.68%

21 Net Margin

1.47%

1.75%

2.35%

22 Return on Assets

8.83%

9.02%

11.38%

23 Return on Equity

19.59%

19.42%

27.86%

24 Interest Coverage (EBIT)

35.797

33.258

17.672

25 Interest Coverage (EBITDA)

37.906

35.182

18.330

9.395

12.487

26 Receivables Turnover
27 Payables Turnover

30.961

32.898

28 Inventory Turnover

14.444

22.804

19.279
30.450
26.961

29 Assets Turnover

5.997

5.160

30 Sales to Net Working Capital

-88.42

-607.29

127.28

31 Cash & Equivalent/Assets

25.42%

21.86%

30.02%

4.848

32 Cash & Equivalent/Current Liabilities

46.92%

41.69%

51.05%

33 Liabilities/Assets

54.91%

53.52%

59.14%

34 Retained Earnings/Assets
35 Funds From Opr./Debt

25.18%

29.64%

28.14%

57.571%

4.510%

0.400%

36 Free Oper. Cash Flow/Total Debt

27.587

37 (Free Oper. Cash Flow+Intrest)/Interest

-0.461

-0.203

-10.677

-2.655

0.033

0.039

0.066

39 Working Capital/Total Assets

-0.068

-0.008

0.038

40 Retained Earning/Total Assets

64.867

0.252

0.296

0.281

38 Per Share Earning Ratio

RATIOS FOR Z-SCORE

41 EBIT/Total Assets

0.142

0.139

42 Equity/Toatal Liabilities

0.821

0.868

43 Sales/Total Assets

5.997

5.160

7.230

6.544

6.305

UNLIKELY

UNLIKELY

UNLIKELY

Z- SCORE:

0.183
0.691
4.848

1.2 X1 + 1.4 X2 + 3.3 X3 + .6 X4 + 1.0 X5

Probability of Default