Preparing Pro-Forma

Statement for 3 Years

We need to calculate Retention Ratio in order to find our Pro-Forma for the next three years. We
need to calculate retention ratio for 2016. Retention Ration for 2016 is 35.84%.
Growth Rate for the past 5 years are following
Year 2016 2015 2014 2013 2012

Sales Growth 52% 0% 4% 6% 46%

Rate

We average the sales growth rate for the previous 5 years. Average of sales growth rate is 22%.
We assume that sales growth rate for next 3 years will be 22%. With this sales growth, sales and
all other expenses related with sales will grow by same percentage.

Income Statement
We assumed that there will be 22% sales growth for Confident Cements in the next 3 years.
Only those expenses which are related with sales will grow by the sales growth in the Income
Statement.
 Pro-Forma Income Statement

Income Statement 2017 2018 2019

Net Sales 6746737332 8231019545 10041843845
Cost of Goods Sold* -5652327333 -6895839346 -8412924002
Gross Profit 1094409999 1335180198 1628919842
Other Operating Income 8617521.24 10513375.91 12826318.61
Administrative Expenses -153352377.4 -187089900.4 -228249678.5
Selling, and Distribution Expenses -144390196.4 -176156039.6 -214910368.3
Operating Profit 805284946.2 982447634.3 1198586114
Other non-operating Income -36050979.26 -43982194.7 -53658277.53
Finance Expense -146194032.3 -178356719.4 -217595197.6
Financial Income 43037785.06 52506097.77 64057439.28
Share of Profit from Associates 307978855.7 375734204 458395728.8
Profit Before WPPF and Income Tax 702128698.9 856597012.7 1045048356
Workers's Profit Participation Fund -35106435.74 -42829851.6 -52252418.96
Net Profit Before Income Tax 938950139.6 1145519170 1397533388
Income Tax Expenses
Current Tax -180442964.2 -220140416.3 -2685
Deferred Tax 53994658.74 65873483.66 8036
Profit after Tax for the Year 812501834.2 991252237.7 1209
Earnings Per Share 11.312733
(EPS) 7.6006 9.272732 04
Balance Sheet 2017 2018 2019
ASSETS
Non-Current Assets 4356089556 5314429259 6483603695
Property, Plant and Equipment-
Carrying Value 2261034337 2758461892 3365323508
Capital Work In Progress 1457288474 1777891938 2169028164
Investments 297129152.9 362497566.6 442247031.2
Investment in Associate Companies 340637592 415577862.3 507004992
Intangible Assets
Current Assets 3264030278 3982116939 4858182666
Investment in Shares
Inventories 465651389.7 568094695.5 693075528.5
Accounts Receivable 930481091.2 1135186931 1384928056
Others Receivable 145000069.5 176900084.8 215818103.5
Short Term Investments 176411466.9 215221989.6 262570827.3
Current Account With Associate
Companies
 Advance, deposit and prepayments 1377711924 1680808547 2050586428
Advance Income Tax
Cash and Bank Balance 168774336.4 205904690.4 251203722.3
TOTAL ASSETS 7620119834 9296546198 11341786361

EQUITY AND LIABILITIES

Shareholders Equity 4048715885 4939433380 6026108723
1,213,111,53
Issued Share Capital 772,816,769 7 2,026,442,715
Share Premium 658,089,549 658,089,549 658,089,549

General Reserve 371,862,754 371,862,755 371,862,755

1,570,685,41 2,021,108,14
Retained Earnings 8.00 2.87 2,294,452,308.49
Revaluation reserve 675,261,395 675,261,396 675,261,396

Non-Current Liabilities 351691101.9 429063144.3 523457036.1

Long Term Borrowings-(Long Term
Loans) 3843685.64 4689296.481 5720941.707
Liabilities for gratuity and WPPF 60629406.7 73967876.17 90240808.93

Current Liabilities and Provisions 3219712847 3928049673 4792220601

Trade Payables 228983910.6 279360370.9 340819652.5
Other Payables 317682015.9 387572059.4 472837912.5
Current Portion of Long Term
Borrowings 17,280,000 17,280,001 17,280,001
2,444,577,85 3,032,648,17
Short Term Loan 0 0 3,750,093,963
Provision For WPPF and Welfare Fund 28,775,767 28,775,767 28,775,767
Current Tax Liabilities 182,413,304 182,413,305 182,413,305
3,571,403,94 4,357,112,81
Total Liabilities 9 8 5,315,677,637
7,620,119,83 9,296,546,19
TOTAL EQUITY AND LIABILITIES 4 8 11,341,786,361
Balance Sheet:
Although maximum balance sheet items are dependent on sales. So those items are increased
with sales growth. Some items will not grow with sales. Such as long term debt, equity items. We
kept those items constant. But retained earnings increases by retention ratio.

DEBT to EQUITY ratio calculation:

As we have to maintain debt to equity ratio constant. We have followed MI cement Debt &
Equity modification. We have used same fomulas.
Debt/Equity= Debt to Equity ratio
 Equity = Debt/ Debt equity ratio

debt to equity 0.882107821 0.882107821 0.882107821 0.882107821

3,318,619,57 4,048,715,885 4,939,433,379 6,026,108,722.

expected owner's equity 8.00 .14 .86 90

owner's equity need to incease - (0.00) (0.01) (0.59)

223,565,070.1
repurchase issued shares 6 0.00 0.00
increase in short term loan

434,043,684.3
decrease in retained earning 99,317,171.43 8
But now we have found different result. As we have seen that in 2017 debt to equity ratio is
decreasing so we deducted the amount from issued shares. That confidence cement need to
repurchase its shares. After that we have found several EFN amount.
2017 2018 2019
10284714 12547352 38139836
EFN 94 18 83
As we had to make EFN 0, so we used another formula. As we have to add those EFN amount
with Total liabilities & owners equity. We have to also maintain Debt to Equity ratio constant.
So we have another formula:
Equity need to increase=EFN/ (1+ constant D to E ratio)
Debt need to increase= EFN- equity need to increase

2017 2018 2019

10284714 12547352 3813983
EFN 94 18 683
equity need to 54644663 66666489 2026442
increase 9.3 7.7 715
debt need to 48202485 58807032 1787540
increase 4.5 0.5 968

Then we have found this table. They we have used two plug variables. They are issued shares
and short term loan. We increased debt and equity amount as they needed to increase to make
EFN 0.
Calculating Cash flow from Pro-Forma statement:
We Consider Depreciation to be constant for next 3 years in order to calculate Free Cash Flow.
We also considered Property, Plant and Equipment as Net Fixed Asset and New Working
Capital was the difference between Current Assets and Current Liabilities.

Free Cash Flow

2017 2018 2019
Operating Cash flow
EBIT 805284946.2 982447634.3 1198586114
Depreciation 177439191.2 216475813.3 264100492.2
- - -
TAX 126448305.4 154266932.6 188205657.8
OCF 856275831.9 1044656515 1274480948

Net Capital Spending

Ending Net Fixed
Asset 4356089556 5314429259 6483603695
Beginning Net Fixed 3,570,565,21 4,356,089,55 5,314,429,25
Asset 0 6 9
Depreciation 177439191.2 216475813.3 264100492.2
1,174,815,51 1,433,274,92
Capital Spending 962,963,537 6 9

Change in NWC
Ending NWC 1457288474 1777891938 2169028164
1,194,498,74 1,457,288,47 1,777,891,93
Beginning NWC 9 4 8
Addition to NWC 262,789,725 320,603,464 391,136,226

CFFA -369,477,430 -450,762,465 -549,930,207