Comparative GAAP Balance Sheet, in million Taka Salvo Chemical

ASSETS 2015 2016

Current Assets
Advances and Deposits 32027634 28275419
Inventories 44740672 46771879
Spare parts 8362419 8356302
Accounts Receivable 76986712 25046528
Others receivables 2293374 2779878
Cash & Cash Equivalents 14862945 37668630
Total Current Assets 179273756 148898636
Non-current Assets
Property Plant & Equipment, net 555477358 549311615
Capital Work In-progress 143323949 148927056
Total Non-current Assets 698801307 698238671

Total Assets 878075063 847137307

LIABILITIES & EQUITY

Current Liabilities
Short term loan 110223258 63645457
Accounts payable 11075857 7250237
Others payable 16323952 16473349
Curretn Portion of LT Debt 7419648 8707871
Provition for Employee benefit 5392888 6232716
Profit Participation Fund 4812238 3006006
Provition for income tax 57282330 61308718
Provition for Expences 2043337 421844
Total Current Liabilities 214573508 167046198

Non-current Liabilities

Long-term loan 37098243 33260993

less:current maturity 7419648 8707871
Preferred stock 10%
Non-current Liabilities 29678595 24553122
Total Liabilities 244252103 191599320

Shareholders' Equity
Share Capital 561691350 561691350
Reserves & surplus 72131610 93846637
Total equity 633822960 655537987

Total Liabilities and Stockholders' equity 878075063 847137307

 Total Shareholders' Equity

Comparative GAAP Income Statements, in Million Taka

Operating Income
Sales 94047690 137830413
less:COGS 48724391 83167115
Gross Profit 45323299 54663298

Operating expenses
Administrative expenses 8003417 12346123
Selling & Distributive expenses 1463638 1611985
Total operating expenses 9467055 13958108

Total operating Profit 35856244 40705190

Non-operating Income 2218781 1024458

Non-operating Expenses
Financial Charge 9951159 8046603
Total non operating expenses 9951159 8046603

Net profit before tax 28123866 33683045

Less:Profit Participation fund 1406193 1684152
Less: Income Tax expenses 12005334 10283866

Net Profit after Tax 14712339 21715027

Earning per share 0.29 0.39

Tax Rate 0.4268735315 0.3053128362

No. of total Share 51062450 56169135

GAAP Statement of Shareholders' Equity

Balance January 1, 2015
Stock options exercised:
Par value
Share Premium
Conversion of Bond into Common Stock:
Par value
 Share Premium
Repurchase of Stock
Dividends on Common Stock, Taka 3 & Taka 4 per share
Issuance of Common Stock to Employees
Forfeiture of shares from Employees
Amortization of Unearned Compensation
Comprehensive Income
Net Income
Other Comprehensive Income, net of tax
Foreign currency translation
Gain (Loss) on hedge derivatives
Total Comprehensive Income
Balance December 31, 2015

Addtitional Information
Dividend Payable, beginning
Dividend Payable, ending

Operating cash is about 0.5% of sales revenue

Accounts payable at market interest rate

No of share 200,000,000
No of shareholders 109
 Salvo Chemical
Reformulated Income Statement
Net Operating Assets 2015 2016
Operating Assets
Operating Cash 470238.45 689152.065
Advances and Deposits 32027634 28275419
Inventories 44740672 46771879
Spare parts 8362419 8356302
Accounts Receivable 76986712 25046528
Others receivables 2293374 2779878
Property Plant & Equipment, net 555477358 549311615
Capital Work In-progress 143323949 148927056
Unearned compensation
Total Operating Assets 863682356.45 810157829.065

Operating Liabilities
Accounts payable- non interest bearing 11075857 7250237
Provition for Employee benefit 5392888 6232716
Profit Participation Fund 4812238 3006006
Provition for income tax 57282330 61308718
Provition for Expences 2043337 421844
Others payable 16323952 16473349
Total Operating Liabilities 96930602 94692870

Net Operating Assets 766751754.45 715464959.065

Financial Assets
Cash and Equivalents 14392706.55 36979477.935
Total Financial Assets 14392706.55 36979477.935

Financial Liabilities
Accounts payable- interest bearing
Long-term loan 37098243 33260993
Current maturity 7419648 8707871
Curretn Portion of LT Debt 7419648 8707871
Short term loan 110223258 63645457
Preferred Stock
Total Financial Liabilities 162160797 114322192

Net Financial Oblication 147768090.45 77342714.065

Euity 618983664 638122245

 Reformulated Income Statement

Sales 94047690 137830413

less:COGS 48724391 83167115
Gross Profit 45323299 54663298
Operating expenses
Administrative expenses 8003417 12346123
Selling & Distributive expenses 1463638 1611985
Total operating expenses 9467055 13958108

Operating Income from sales (before Tax) 35856244 40705190

Taxes
Taxes as reported 12005334 10283866
Taxes on financial items 4247886.38525393 2456731.18351378
Net 16253220.3852539 12740597.1835138

Operating Income from sales (after Tax) 19603023.6147461 27964592.8164862

Other operating income, net of tax 2218781 1024458

Currency transalation gains
Gain on hedge
Effect of Accounting Change
Total Other operating income 2218781 1024458

Operating Income after tax 21821804.6147461 28989050.8164862

Financial expenses (income)

Interest expenses 9951159 8046603
Tax effect 4247886.38525393 2456731.18351378
Net Interest expense 5703272.61474607 5589871.81648622
Preferred Dividends

Net financing income after Tax 5703272.61474607 5589871.81648622

Comprehensive Income 16118532 23399179

Reformulated Statement of Common equity

Balance, beginning
Transaction with Shareholders
Stock Issues
Stock repurchases
Common dividend paid
Total transaction with shareholders
Comprehensive Income
Net Income reported
 Currency translation gain
Gains on hedging
Total

Balance, ending
Comparative GAAP Balance Sheet, in Taka 2015
ASSETS
Current Assets
Inventories 374399878
Cash and Cash Equivalents 39940930
Trade Receivables 644292072
STD Account (IPO) 3035000
Advances and Deposits 51710861

Total Current Assets 1113378741

Property Plant & Equipment, net 859529783
Security deposits 1548471
Deferred tax assets
Non-current Assets 861078254

Total Assets 1974456995

LIABILITIES & EQUITY

Current Liabilities
Trade Payable 31937074
Short term borrowing 4521876
Share Money Deposit 3035000
Creditors and Accruls 6193456

Total Current Liabilities 45687406

Non-current Liabilities 0
10% Preferred Stock, at par
Total Liabilities 45687406

Share Capital 1092378780

Retained Earnings 836390809
Total Shareholders' Equity 1928769589
Total Liabilities and Stockholders' equity 1974456995

Comparative GAAP Income Statements, in Million Taka

Revenues 1308365030
Cost of Sales 998740653
Gross Margin 309624377
Operating Expenses
Administrative expenses 6993120
Selling and Distributive expenses 8274333
Worker's Profit Participation Fund 628579
Total 15896032

Net profit from operation 293728345

less: financial expenses 181524
293546821
Add: Other income 4914309

Net Profit before tax 298461130

less: income tax 0

Profit after tax 298461130

Earning per share 2.73

No. of total Share 109237878

 2016

397370281
75362519
599010464
2980000
51263934

1125987198
1192501526
1548471

1194049997

2320037195

34150610
2125487
2980000
7500408

46756505

46756505

1365473470
907807220
2273280690
2320037195

1492738046
1130040949
362697097

9337407
 8448149
689091
18474647

344222450
465214
343757236
753865

344511101
0

344511101

2.52

136547347
 Far Chemical
Reformulated Income Statement
Net Operating Assets 2015 2016
Operating Assets
Operating Cash 6541825.15 7463690.23
Inventories 374399878 397370281
Trade Receivables 644292072 599010464
STD Account (IPO) 3035000 2980000
Advances and Deposits 51710861 51263934
Property Plant & Equipment, net 859529783 1192501526
Security deposits 1548471 1548471
Unearned compensation
Total Operating Assets 1941057890.15 2252138366.23

Operating Liabilities
Trade Payable 31937074 34150610
Creditors and Accruls 6193456 7500408

Total Operating Liabilities 38130530 41651018

Net Operating Assets 1902927360.15 2210487348.23

Financial Assets
Cash and Equivalents 14392706.55 36979477.935
Total Financial Assets 14392706.55 36979477.935

Financial Liabilities
Accounts payable- interest bearing
Short term borrowing 4521876 2125487
Share Money Deposit 3035000 2980000
Preferred Stock
Total Financial Liabilities 7556876 5105487

Net Financial Oblication -6835830.55 -31873990.935

Euity 1909763190.7 2242361339.165

Reformulated Income Statement

Revenues 1308365030 1492738046

Cost of Sales 998740653 1130040949
Gross Margin 309624377 362697097
Operating Expenses
 Administrative expenses 6993120 9337407
Selling and Distributive expenses 8274333 8448149
Worker's Profit Participation Fund 628579 689091
Total operating expenses 15896032 18474647
Operating Income from sales (before Tax) 293728345 344222450
Taxes
Taxes as reported 0 0
Taxes on financial items
Net 0 0

Operating Income from sales (after Tax) 293728345 344222450

Other operating income, net of tax 4914309 753865

Currency transalation gains
Gain on hedge
Effect of Accounting Change
Total Other operating income 4914309 753865

Operating Income after tax 298642654 344976315

Financial expenses (income)

Interest expenses 181524 465214
Tax effect 0 0
Net Interest expense 181524 465214
Preferred Dividends

Net financing income after Tax 181524 465214

Comprehensive Income 298461130 344511101
 Salvo Chemical
Liquidity Ratio 2015 2016
Current Ratio 0.8354887687 0.8913620171
Quick Ratio 0.4280568364 0.3754360096
Cash Ratio 0.0692673813 0.225498278
Defensive Interval Ratio
Cash Conversion cycle

Activity Ratios 2015 2016

Inventory Turnover Ratio
Days Inventory on hand
Receivable Turnover
Days Sales outstanding
Payable Turnover
No. of Days payable
Working Capital Turnover
Fixed Asset Turnover
Current Asset Turnover
Total Asset Turnover
1.0890402138 1.7781435507
335.1575041749 205.2702661984
1.1862712914 4.9532236754
307.6867851831 73.6893837066
0.0534178176 0.0679486229
6832.926095797 5371.705623812
-2.6642592277 -7.5949823453
0.1345843075 0.1973972779
0.5246037797 0.9256660551
0.1071066632 0.1627013848

Solvency Ratio 2015 2016

Debt-to-Asset Ratio 0.2781676798 0.2261726858
Debt-to-Capital Ratio 0.2781676798 0.2261726858
Debt-to-Equity Ratio 0.3853632929 0.2922779821
Financial Leverage Ratio 1.3853632929 1.2922779821
Interest Coverage Ratio 2.8261899946 4.1859956307
Fixed Charge Coverage Ratio 2.8261899946 4.1859956307
EBITDA coverage Ratio 2.8261899946 4.1859956307

Profitability 2015 2016

Gross Profit Margin 0.4819182587 0.3965982312
Operating Profit Margin 0.3812559777 0.295328071
Pre-tax Margin 0.2990383496 0.2443803531
Net Profit Margin 0.1564348789 0.1575488786
Basic Earning Power 0.0320289998 0.0397610219
Return on Asset 0.1511611196 0.1484937835
Return on total Capital 0.0167552179 0.0256334207
Return on Equity 0.0232120638 0.0331255052
Return on sales 0.1564348789 0.1575488786
Valuation 2015 2016
Price to Earning Ratio
Price to Cash Flow Ratio
Price to Book Value Ratio
Price to Sales Ratio
Cash Flow per Share 0.2881244241 0.3866007016
Book Value per Share 12.4127017015 11.6707865806
Sales per Share 1.8418170299 2.4538461025
 Far Chemical
Liquidity Ratio 2015 2016
Current Ratio 24.3694890666 24.0819367915
Quick Ratio 0.9081146126 1.6449259841
Cash Ratio 0.8742218808 1.6118082179
Defensive Interval Ratio
Cash Conversion cycle

Activity Ratios 2015 2016

Inventory Turnover Ratio 2.6675773997 2.8437983489
Days Inventory on hand 136.828269741 128.3494661794
Receivable Turnover 2.0307017374 2.4920066271
Days Sales outstanding 179.7408222383 146.468310328
Payable Turnover 0.2590823755 0.2473791537
No. of Days payable 1408.818331339 1475.4678983527
Working Capital Turnover 1.2254150494 1.3831501047
Fixed Asset Turnover 1.5194496248 1.2501470204
Current Asset Turnover 1.1751302426 1.3257149359
Total Asset Turnover 0.6626454936 0.6434112562

Solvency Ratio 2015 2016

Debt-to-Asset Ratio 0.0231392257 0.0201533428
Debt-to-Capital Ratio 0.0231392257 0.0201533428
Debt-to-Equity Ratio 0.0236873322 0.0205678539
Financial Leverage Ratio 1.0236873322 1.0205678539
Interest Coverage Ratio 1644.196524977 740.5432790071
Fixed Charge Coverage Ratio 1644.196524977 740.5432790071
EBITDA coverage Ratio 1644.196524977 740.5432790071

Profitability 2015 2016

Gross Profit Margin 0.2366498415 0.2429743772
Operating Profit Margin 0.2245003025 0.2305980282
Pre-tax Margin 0.2281176301 0.2307913983
Net Profit Margin 0.2281176301 0.2307913983
Basic Earning Power 0.1511611196 0.1484937835
Return on Asset 0.1511611196 0.1484937835
Return on total Capital 0.1511611196 0.1484937835
Return on Equity 0.1547417233 0.151547982
Return on sales 0.2281176301 0.2307913983
Valuation 2015 2016
Price to Earning Ratio
Price to Cash Flow Ratio
Price to Book Value Ratio
Price to Sales Ratio
Cash Flow per Share 2.7322128136 2.5230157053
Book Value per Share 17.6566006619 16.6482962866
Sales per Share 11.9772102311 10.9320179322
 Traditional Approach of ROE
ROE=ROA*Financial Leverage
ROE=Net Profit Margin*Total Asset Turnover*Financial lev
5 Factors DuPont
Salvo Chemical 2015 2016
Tax Burden Net Income/EBT 0.5231264791 0.6446871712
Interest Burden EBT/EBIT 1 1
EBIT Margin EBIT/Sales 0.2990383496 0.2443803531
Net Profit Margin 0.1564348789 0.1575488786
Net Profit Margin Net Income/Sales 0.1564348789 0.1575488786
Total Asset Turnover Sales/Total Asset 0.1071066632 0.1627013848
Financial Leverage Total Asset/Equity 1.3853632929 1.2922779821
ROE 0.0232120638 0.0331255052
5 Factor ROE 0.0232120638 0.0331255052

ROE=Net Income/Equity
ROE 0.0232120638 0.0331255052

Alternative approach of DuPont

ROE=Operating ROA+Spread*Net Financial leverage
Salvo Chemical
Net Interest
Expenses after Tax 3268696.49234953 3883212.198334
Net operating
Profit after 17981035.4923495 25598239.19833
Operating Working Capital 67480209 16537136
Net Long Term Assets 698801307 698238671
Net Debt 139878204 67945691
Net Asset 766281516 714775807
Net Capital 773701164 723483678
Operating ROA 0.0234653128 0.0358129625
Spread 9.715111340293E-05 -0.0213387441
Net Financial Leverage 0.2206897081 0.1036487471
ROE 0.0234867531 0.0336012284
 Approach of ROE
*Financial Leverage
al Asset Turnover*Financial leverage
ctors DuPont
Far Chemical 2015 2016
Tax Burden Net Income/EBT 1 1
Interest Burden EBT/EBIT 1 1
EBIT Margin EBIT/Sales 0.2281176301 0.2307913983
Net Profit Margin 0.2281176301 0.2307913983
Net Profit Margin Net Income/Sales 0.2281176301 0.2307913983
Total Asset Turnover Sales/Total Asset 0.6626454936 0.6434112562
Financial Leverage Total Asset/Equity 1.0236873322 1.0205678539
ROE 0.1547417233 0.151547982
5 Factor ROE 0.1547417233 0.151547982

ROE=Net Income/Equity
ROE 0.1547417233 0.151547982

ach of DuPont
d*Net Financial leverage
Far Chemical
Net Interest
Expenses after Tax 181524 465214
Net operating
Profit after 298642654 344976315
Operating Working Capital 1032272281 1005993661
Net Long Term Assets 861078254 1194049997
Net Debt -32384054 -70257032
Net Asset 1893350535 2200043658
Net Capital 1896385535 2203023658
Operating ROA 0.1577323631 0.1568043042
Spread 0.1633377144 0.1634259047
Net Financial Leverage -0.0167900065 -0.0309055685
ROE 0.1549899218 0.1517535337
 Residual Earning Valu
Salvo Chemical
Particulars 2012 2013 2014 2015 2016
Book value of share 490,937,990 541,708,590 585,577,276 633822960 655537987
Total No. of Share 44,210,260 46,420,773 51062850 51062450 56169135
BOOK value per share 11.1046166659 11.6695297168 11.467775026 12.412701702 11.6707865806

Particulars 2012 2013 2014 2015 2016

EPS 0.71 1.09 0.31 0.29 0.39
DPS 0 0 0 0 0
BPS 11.1046166659 12.1946166659 12.504616666 12.794616666 13.1846166659
ROCE 0.0645454545 16.8873239437 0.0183569641 15.797819173 0.0246869518
Residual Earning(10%) -0.39 -0.0204616666 -0.909461667 -0.9604616666 -0.8894616666

Discount rate(10%) 1.1 1.21 1.4641 2.14358881 4.5949729864

PV of RE -0.3545454545 -0.0169104683 -0.621174555 -0.4480624559 -0.1935727738
Total PV of RE to 2016 -1.6342657079
CV -18.6786949984
Pv of CV -11.598000011
Value per Share -0.952545466
Market Value of
idual Earning Valuation
Far Chemical
Particulars 2012 2013 2014 2015
Book value of share 833,014,911 1,228,597,274 1630308459 1928769589
Total No. of Share 52,687,710 79,031,565 91031565 109237878
BOOK value per share 15.81042165 15.545652854 17.90926542 17.65660066

Particulars 2012 2013 2014 2015

EPS 4.05 5.01 3.45 2.73
DPS 0 0 0 0
BPS 15.81042165 20.8204216524 24.27042165 27.00042165
ROCE 0.27 0.3168795944 0.165702696 0.112482595
Residual Earning(10%) 2.55 3.4289578348 1.367957835 0.302957835

Discount rate(10%) 1.1 1.21 1.4641 2.14358881

PV of RE 2.318181818 2.8338494502 0.934333608 0.141332066
Total PV of RE to 2016 6.188514521
CV
Pv of CV -2.347632408
Value per Share 14.97054941
Market Value of
 2016
2273280690
136547347
16.64829629

2016
2.52
0
29.52042165
0.093331876
-0.18004217

4.594972986
-0.03918242

-3.78088547
 Data From reformulated of Salvo Chemical
Particulars 2015 2016
NOA 766751754.45 715464959.065
OI 21821804.6147461 28989050.8164862
CSE 618983664 638122245
Avg CSE 618983664 638122245
NFO 147768090.45 77342714.065
NFE 5703272.61474607 5589871.81648622
OA 863682356.45 810157829.065
OL 96930602 94692870
Sales 94047690 137830413

First Level Breakdown

A. Analysis of Financial Liability Leverage
ROCE=Comprehensive Income/ Avg CSE
Particulars 2015 2016
CI 16118532 23399179
ROCE 0.0260403189 0.0366688032

A. Analysis of Financial Liability Leverage

ROCE=(NOA/CSE*RNOA)- (NFO/CSE*NBC)
Particulars 2015 2016
RNOA 0.0284600648 0.0405177786
NBC 0.0385961042 0.0722740582
ROCE 0.0260403189 0.0366688032

A. Analysis of Financial Liability Leverage

ROCE=RNOA+(FLEV*SPREAD)
Particulars 2015 2016
RNOA 0.0284600648 0.0405177786
FLEV 0.2387269633 0.1212036011
NBC 0.0385961042 0.0722740582
SPREAD -0.0101360394 -0.0317562796
ROCE 0.0260403189 0.0366688032

B. Analysis of operating liability leverage

RONA=OI+Implicit Cost/OA+(OLLEV*OLSPREAD)
Particulars 2015 2016
OI 21821804.6147461 28989050.8164862
RNOA 0.0284600648 0.0405177786
 B. Analysis of operating liability leverage
RONA=OI+Implicit Cost/OA+(OLLEV*OLSPREAD)
Particulars 2015 2016
Implicit Cost 1938612.04 1893857.4
ROOA 0.0275105963 0.0381196195
OLLEV 0.1264171897 0.1323515132
OLSPREAD 0.0075105963 0.0181196195
OLEV*OLSPREAD 0.0009494685 0.0023981591
RNOA 0.0284600648 0.0405177786

Second Level Breakdown

ROCE= RNOA+[FLEV*(RNOA-NBC)]
Particulars 2015 2016
RNOA 0.0284600648 0.0405177786
FLEV 0.2387269633 0.1212036011
NBC 0.0385961042 0.0722740582
RNOA-NBC -0.0101360394 -0.0317562796
ROCE 0.0260403189 0.0366688032

ROCE= PM*ATO+[FLEV*(RNOA-NBC)]
Particulars 2015 2016
Operating profit margin (PM) 0.0166786823 0.0194200522
Asset Turnover (ATO) 1.7063737023 2.0863887561
RNOA-NBC 2013.2936262977 2013.9136112439
ROCE 0.0260403189 0.0366688032

Third Level Breakown

Particulars 2015 2016
Sales Margin 0.4819182587 0.3965982312

Administrative Margin 0.0850995596 0.089574737

Selling & Distributive Expenses 0.0155627214 0.0116954231
Sales Profit Margin 0.3812559777 0.295328071
Other items Profit Margin
Profit Margin 0.3812559777 0.295328071
 Data From reformulated of Far Chemical
Particulars 2015 2016
NOA 1902927360.15 2210487348.23
OI 298642654 344976315
CSE 1909763190.7 2242361339.165
Avg CSE 1909763190.7 2242361339.165
NFO -6835830.55 -31873990.935
NFE 181524 465214
OA 1941057890.15 2252138366.23
OL 38130530 41651018
Sales 1308365030 1492738046

reakdown
Analysis of Financial Liability Leverage
ROCE=Comprehensive Income/ Avg CSE
Particulars 2015 2016
CI 298461130 344511101
ROCE 0.1562817482 0.1536376386

A. Analysis of Financial Liability Leverage

ROCE=(NOA/CSE*RNOA)- (NFO/CSE*NBC)
Particulars 2015 2016
RNOA 0.1569385465 0.156063465
NBC -0.0265547835 -0.0145954111
ROCE 0.1562817482 0.1536376386

A. Analysis of Financial Liability Leverage

ROCE=RNOA+(FLEV*SPREAD)
Particulars 2015 2016
RNOA 0.1569385465 0.156063465
FLEV -0.0035794127 -0.0142144758
NBC -0.0265547835 -0.0145954111
SPREAD 0.18349333 0.1706588761
ROCE 0.1562817482 0.1536376386

B. Analysis of operating liability leverage

RONA=OI+Implicit Cost/OA+(OLLEV*OLSPREAD)
Particulars 2015 2016
OI 298642654 344976315
RNOA 0.1569385465 0.156063465
 B. Analysis of operating liability leverage
RONA=OI+Implicit Cost/OA+(OLLEV*OLSPREAD)
Particulars 2015 2016
Implicit Cost 762610.6 833020.36
ROOA 0.1542484983 0.1535471091
OLLEV 0.0200378274 0.0188424593
OLSPREAD 0.1342484983 0.1335471091
OLEV*OLSPREAD 0.0026900482 0.002516356
RNOA 0.1569385465 0.156063465

Breakdown
ROCE= RNOA+[FLEV*(RNOA-NBC)]
Particulars 2015 2016
RNOA 0.1569385465 0.156063465
FLEV -0.0035794127 -0.0142144758
NBC -0.0265547835 -0.0145954111
RNOA-NBC 0.18349333 0.1706588761
ROCE 0.1562817482 0.1536376386

ROCE= PM*ATO+[FLEV*(RNOA-NBC)]
Particulars 2015 2016
Operating profit margin (PM) 0.2282563712 0.2311030498
Asset Turnover (ATO) 0.6875538486 0.6752981632
RNOA-NBC 2014.3124461514 2015.3247018368
ROCE 0.1562817482 0.1536376386

Breakown
Particulars 2015 2016
Sales Margin 0.2366498415 0.2429743772
Selling & Distributive Expenses 0.0063241777 0.0056594987
Administrative Expenses 0.0053449304 0.0062552214
Others Expenses 0.0004804309 0.0004616289
Sales Profit Margin 0.2245003025 0.2305980282
Other items Profit Margin
Profit Margin 0.2245003025 0.2305980282