2016

Financial projection report on

Attock Cement , Pakistan

Financial Management Assignment Submitted to Sir

Asim Shaikh
MUHAMMAD ATTIQUE SHAH

SECTION: A, SUKKUR IBA | Airport Road Sukkur

ATTOCK CEMENT REPORT

INTRODUCTION:

The journey of Attock Cement started from the year 1981 and the company started its commercial

production in 1988. in 25 years, company has shown steady growth. ACPL has attained new peaks

every year through strong team work, continuous modernization of plant to improve efficiency and

with utmost hard work. ACPL has cemented its place not only in the local market but also in the

regional markets through selling quality products. They are achieving high level of growth and

sustained in this competitive world, their financial are very sound and strong.

Assumptions and Explanations:

Attock Cement growth has been estimated through sustainable growth rate formula which is

defined as roe multiply by retention ratio, so I estimated the sustainable growth in sales of Attock

Cement approximately 11.3%, we assumed no change in capital and reserves because Attock

Cement will not increase their capital because they simply don’t need additional funds. We assume

that non-currently liability will be same until 2018 because Attock Cement don’t need to borrow

loan from any institution or from any person because they can fulfil their needs from their retained

earnings if their growth in sales will be up to 11.3%. Through the analysis of data it is estimated

that Attock Cement can fund the extra money required for growth, AFN (additional fund needed)

can be funded by company itself throughout 2018 according to our projections. In these projections
we assume the income tax rate 32% until 2018, and currently it is 32%, we assume government

will not increase the tax rate because it is already high.

We assume COGS will increase with same percentage as sales will increase, there will be no

increment in raw material or other inputs which they use in production.

For these projections we assume that current assets will increase with same proportion as sales,

because current assets are mostly directly related with sales, as when sales increase, receivable are

also increasing so we assumed that all the current assets will increase with same percentage as

sales increase.

Growth = ROE*b

2015 In Million

Profit 2222

Dividend 1199

Pay out ratio 0.5396

B 0.46040

ROE 24.50%

Growth 0.1128

Estimated Growth 0.113

Attock Cement Profit and Loss Statement

FY2015 EFY2016 EFY2017 EFY2018

Rupees in thousands (000)

Net sales 24310162 27052276 30103692 33499300

COST OF SALES 16631197 18507147 20594698 22917719

Gross Profit 7678965 8545129 9508995 10581581

DISTRIBUTION COSTS 4214248 4689603 5218576 5807216

ADMINISTRATIVE EXPENSES 268311 298576 332254 369731

FINANCE COSTS 20410 22712 25274 28125

OTHER EXPENSES 262926 292583 325586 362311

OTHER INCOME 361719 402520 447923 498447

Profit before taxation 3274789 3644175 4055228 4512645

Less:Taxation 1052621 1166136 1297673 1444046

Profit After Taxation (in thousands) 2222168 2478039 2757555 3068599

Attock Cement - Balance sheet

Balance Sheet

ASSETS 2015 2016 2017 2018

NON-CURRENT ASSETS

Fixed assets

Property, plant and equipment 2935589 2935589 2935589 2935589

Intangible assets 7552 7552 7552 7552

Long term Loans 19585 19585 19585 19585

Long term security deposits 14267 14267 14267 14268

Other Assets 409133 864416 1371053

NON current Assets 2976993 3386126 3841409 4348047

CURRENT ASSETS:
Store and Spares 152238 169410 188519 209783

Stock in Trade 2607106 2901180 3228424 3592581

Trade debts 666378 741543 825187 918266

Loans and Advances 164821 183412 204101 227123

Trade deposits and short term payments 32960 36678 40815 45419

Other Receivables 18101 20143 22415 24943

Profit receivable from banks 1482 1649 1835 2042

Taxation 886001 985939 1097150 1220906

Short term Investment 3101198 3451004 3840267 4273438

Cash and Bank balances 936419 1042044 1159584 1290381

Current Assets 8566704 9533003 10608297 11804882

TOTAL ASSETS 11543697 12919129 14449706 16152928

EQUITY AND LIABILITIES

Share capital and reserves

Issued Capital 479549 479549 479549 479549

Reserves 8640488 8640488 8640488 8640488

Remeasurement of post retirement -67469 -67469 -67469 -67469

Surplus on revaluation of investments 1048 1048 1048 1048

Retained Earnings 1140879 2410447 3823218

EQUITY 9053616 10194495 11464063 12876834

NON CURRENT LIABILITIES

Deffered Taxation 348076 348076 348076 348076

long term deposits 25493 25493 25493 25493

Deffered Liability 37088 37088 37088 37088

Non-Current Liabilities 410657 410657 410657 410657

Current Liabilities

Trade and other Payables 2079424 2313977 2574987 2865437

TOTAL LIABILITIES 2490081 2724634 2985644 3276094

EQUITY AND LIBILITIES 11543697 12919129 14449706 16152928