Pro Forma Income stateme

2018 2019 2020 2021 2022

SALES 5453221 5120444 4177951 5602160 7,105,233
Change in Sales -6% -18% 34% 27%
Cost of Sales 4262573 4004021 3301617 4485600 5883486

Gross Profit 1190648 1116423 876334 1116560 1,221,747

Selling and Distribution Expense 785010 665377 479685 538891 677395
Administrative Expenses 191387 184684 167647 172057 191950
Impairement Loss/reversed during the year - - - 61923 3074
Other Operating Expenses 15820 19978 8461 50465 19386
Operating Profit 198341 246384 220541 293224 336090
Other Income 36923 31681 84041 91580 74405
EBIT 235354 278065 304582 384804 410495
Finance Cost 88142 165076 190050 117758 163477
Profit Before Taxation 147212 112998 114532 267046 247,018
Taxation 45106 12173 40224 71825 45132
Profit after Taxation 102106 100825 74308 195221 201,886
Earning Per share 4.99 4.93 3.63 9.54 8.22

TC 23 TC 24
Cost of Sales FC 60 0.6 3514831 3514831
VC 40 0.4 2343221 3514831
Distribution Cost FC 40 0.4 233028.4 233028.4
VC 60 0.6 349542.6 524313.9
Administration Expense FC 90 0.9 188093.7 188093.7
VC 10 0.1 20899.3 31348.95
Other Expenses FC
VC 100 1 101414 152121
rma Income statement of Berger paints

2023 2024 2025 2026 2027 2028

7,341,165 11011748 16517621 24776432 37164648 55746972 Average Increase in Sales
3% 50% 50% 50% 50% 50%
5858052 8787078 13180617 19770926 29656388 44484582 Increase with Sales 2024
2025
1,483,113 2224670 3337004 5005506 7508260 11262389 increase with sales 2026
582571 873856.5 1310785 1966177 2949266 4423899 Increase with sales 2027
208993 313489.5 470234.3 705351.4 1058027 1587041 increase with sales 2028
73084 109626 164439 246658.5 369987.8 554981.6 Increase with Sales
101414 152121 228181.5 342272.3 513408.4 770112.6 increase with sales
517051 775576.5 1163365 1745047 2617571 3926356
97691 146536.5 219804.8 329707.1 494560.7 741841 increase with Sales
614742 922113 1383170 2074754 3112131 4668197
283545 425317.5 637976.3 956964.4 1435447 2153170 Constant with EBIT
331,197 496795.5 745193.3 1117790 1676685 2515027
91136 136704 205056 307584 461376 692064 Constant with EBT
240,061 360091.5 540137.3 810205.9 1215309 1822963
9.78 14.67 22.005 33.0075 49.51125 74.26687

5858052 7029662

582571 757342.3

208993 219442.7

101414 152121
Average Increase in Sales

50%
50%
50%
50%
50%
 Berger paints IS and BS
Column1 Rupees In 2023 2022 2021
Property, plant and equipment 2,306,831 1628161 1,634,795
Intangible assets - 211
Long term investments 78,479 70915 52,505
Loan to related party- secured
Long term loans 37,261 38632 34,147

Long term deposits 22,218 38138 36,419

deffered taxation 29,093
2,444,789 1775869 1,787,170
CURRENT ASSETS
Stores, spare parts and loose tools 30,341 22735 18,491
Stock in trade 1,437,793 1625411 1,225,895
Trade debts - unsecured 1,907,525 1628302 1,219,678
Loans and advances 277,322 221950 277,245
Loan to related party- secured
Trade deposits and short term prepayments 31,864 26821 31,676
Other receivables 62,053 113633 184,323
Tax refund due from government 182,994 207054 192,661
Short term investment 191,000 140000 30,000
Cash and bank balances 47,078 223671 44,476
4,167,970 4209577 3,224,445
TOTAL ASSETS 6,612,759 5985446 5,011,615
EQUITYCAPITAL
SHARE AND LIABILITIES
AND RESERVES
Authorised share capital 250,000 250000 250000
Issued, subscribed and paid-up share capital 245,516 204597 204597
Reserves
Capital reserves
share premium and other reserves 45,304
Revaluation surplus on property, plant and equipment 1,495,613 830273 849056

Other reserves 56,205 58017

1,551,818 888290 894,360
Revenue reserves
General reserve 285,000 285000 285000
Accumulated profits 1,113,469 967825 841416
1,398,469 1252825 1,126,416
3,195,803 2345712 2,225,373
NON-CURRENT LIABILITIES
Long term financing - secured 94,221 183222 152,498
Long term diminishing musharaka 333,333 16000
Deferred grant 21,672 2251 1,155
Long term employee benefits 144,748 144012 75,589
Deferred taxation - net 104,645 8379 -
698,619 353864 229,242
CURRENT LIABILITIES
Trade and other payables 2,020,366 1790697 1,569,174
Current portion of long term financing 228,098 69110 2,407
Unclaimed dividend 13,106 6826 7,551
Accrued markup 31,459 45298 22,479
Short term borrowings - secured 425,308 1373939 847,505
2,718,337 3285870 2,557,000
TOTAL LIABILITIES 3,416,956 3639734 2,786,242
TOTAL EQUITY AND LIABILITIES 6,612,759 5985446 5,011,615
aints IS and BS
2020 2019 2018
1,638,058 1,177,145 1,223,549
25,516 26,696 40,297
52,037 54,504 67,287
40,000 40,000
23,974 44,628 54,360

17,875 21,205 25,884

- 43,878
1,797,460 1,368,056 1,451,377

13,593 16,906 15,772

1,085,933 917,368 1,015,911
1,039,773 1,461,014 1,164,907
156,048 98,786 199,686
40,000
34,038 41,206 51,360
104,579 13,891 16,388
250,706 280,934 291,573
32,195 32,195 42,275
40,635 76,625 21,420
2,757,500 2,978,925 2,819,292
4,554,960 4,346,981 4,270,669

250,000 250,000 250000

204,597 204,597 181,864

40,543 903,660 828,666

877,100 472,012 509,131

917,643

285000
647783
932,783
2,055,023 1,580,269 1,519,661

120,122 89,635 69,965

2,077
 138,527 154,049 142,592
15,453 - 9000
276,179 243,684 221,557

900,926 1,192,513 1,301,943

1,662 80,356 68,298
6,687 5,980 4,756
35,173 39,432 16,465
1,051,551 1,204,747 1,137,989
2,223,758 2,523,028 2,529,451
2,499,937 2,766,712 2,751,008
4,554,960 4,346,981 4,270,669
Column1 Column2 2023 2022 2021
Revenue from contract with customers - net 7,341,165 7,105,233 5,602,160
Cost of sales ( 5 , 858,052) ( 5 , 883,486) -4,485,600
Gross profit 1,483,113 1,221,747 1,116,560
Selling and distribution expenses (582,571) (677,395) -538,891
Administrative and general expenses (208,993) (191,950) -172,057
Impairment loss (charged) / reversed during the year (73,084) 3,074 -61,923
Other operating expenses (101,414) (19,386) -50,465
(966,062) (885,657)
Profit from operations 517,051 336,090 293224
Other income 97,691 74,405 91,580
614,742 410,495 384,804
Finance cost (283,545) (163,477) -117,758
Profit before taxation 331,197 247,018 267,046
Taxation (91,136) (45,132) -71,825
Profit after taxation 240,061 201,886 195,221
Earnings per share - basic and diluted (Rupees) 9.78 8.22 9.54
2020 2019 2018
4,177,951 5,120,444 5,453,221
-3,301,617 -4,004,021 -4,262,573
876,334 1,116,423 1,190,648
-479,685 -665,377 -785,010
-167,647 -184,684 -191387
-
-8,461 -19,978 -15,820

220541 246,384 198,341

84,041 31,681 36,923
304,582 278,065 235,354
-190,050 -165,067 -88,142
114,532 112,998 147,212
-40,224 -12,173 -45,106
74,308 100,825 102,106
3.63 4.93 4.99
Column 1 2018 2019 2020 2021 2022 2023 2024
property, plant and equipment 1,223,549 1,177,145 1,638,058 1,634,795 1628161 2,306,831 3460247
intangible assets 40,297 26,696 25,516 211 -
long-term investments 67,287 54,504 52,037 52,505 70915 78,479 117718.5
loan related to party-secured 40,000 40,000
long term loans 54,360 44,628 23,974 34,147 38632 37,261 55891.5

long term deposits 25,884 21,205 17,875 36,419 38138 22,218 33327
deffered taxation 43,878 - 29,093
1,451,377 1,368,056 1,797,460 1,787,170 1775869 2,444,789 3667184
CURRENT ASSETS
store, spare parts and loose tools 15,772 16,906 13,593 18,491 22735 30,341 45511.5
stock in trade 1,015,911 917,368 1,085,933 1,225,895 1625411 1,437,793 2156690
trade debt- unsecured 1,164,907 1,461,014 1,039,773 1,219,678 1628302 1,907,525 2861288
loans and advances 199,686 98,786 156,048 277,245 221950 277,322 277322
loan to related party secured 40,000
short term prepayments 51,360 41,206 34,038 31,676 26821 31,864 47796
other receivables 16,388 13,891 104,579 184,323 113633 62,053 93079.5
taxes refunds due from govt. 291,573 280,934 250,706 192,661 207054 182,994 274491
short term investments 42,275 32,195 32,195 30,000 140000 191,000 286500
cash and bank balance 21,420 76,625 40,635 44,476 223671 47,078 70617
2,819,292 2,978,925 2,757,500 3,224,445 4209577 4,167,970 6113294
TOTAL ASSETS 4,270,669 4,346,981 4,554,960 5,011,615 5985446 6,612,759 9780478
EQUITIES AND LIABILITIES
SHARE CAPITAL AND RESE 250000 250,000 250,000 250000 250000 250,000 375000
issued, subscribed and payedup cap181,864 204,597 204,597 204597 204597 245516 368274
reserves
capital reserves
share premium and other reserves 828,666 903,660 40,543 45,304

revaluation surplus on property,

plant and equipment 509,131 472,012 877,100 849056 830273 1,495,613 2243420

other reserves 58017 56,205 84307.5

917,643 894,360 888290 1,551,818 2327727
general reserves 285000 285000 285000 285,000 427500
accumulated profit 647783 841416 967825 1,113,469 1670204
932783 1126416 1252825 1398469 2097704
1519661 1580269 2055023 2225373 2345712 3195803 4793705
NON-CURRENT LIABILITIES
long term financing secured 69,965 89,635 120,122 152,498 183222 94221 141331.5
long term diminishing musharaka 16000 333333
deffered grant 2,077 1,155 2251 21,672 32508
long term employee benefits 142592 154049 138527 75589 144012 144,748 217122
deffered taxation- net 9000 - 15,453 - 8379 104,645 156967.5
221,557 243,684 276,179 229,242 353864 698,619 547929
CURRENT LIABLITIES
trade and other payables 1,301,943 1,192,513 900,926 1,569,174 1790697 2,020,366 3030549
current portion of long term finan 68298 80356 1662 2407 69110 228,098 342147
unclaimed dividend 4,756 5,980 6,687 7,551 6826 13,106 19659
accrued markup 16,465 39,432 35,173 22,479 45298 31,459 47188.5
short term borrowing secured 1,137,989 1,204,747 1,051,551 847,505 1373939 425,308 637962
2,529,451 2,523,028 2,223,758 2,557,000 3285870 2,718,337 4077506
TOTAL LIABILITIES 2,751,008 2,766,712 2,499,937 2,786,242 3639734 3,416,956 4625435
TOTAL EQUITY AND LIABILIT4,270,669 4,346,981 4,554,960 5,011,615 5985446 6,612,759 9419139
 2,025 2026 2027 2028
5190370 7785555 11678332 17517498 All assets are increased by % of sales method

176577.8 264866.6 397299.9 595949.9 All assets are increased by % of sales method

83837.25 125755.9 188633.8 282950.7 All assets are increased by % of sales method

49990.5 74985.75 112478.6 168717.9 All assets are increased by % of sales method

5500775 8251163 12376744 18565116

68267.25 102400.9 153601.3 230402 All assets are increased by % of sales method
3235034 4852551 7278827 10918241 All assets are increased by % of sales method
4291931 6437897 9656845 14485268 All assets are increased by % of sales method
415,983 623974.5 935961.8 1403943 All assets are increased by % of sales method

71694 107541 161311.5 241967.3 All assets are increased by % sales method
139619.3 209428.9 314143.3 471215 All assets are increased by % sales method
411736.5 617604.8 926407.1 1389611 All assets are increased by % sales method
429750 644625 966937.5 1450406 All assets are increased by % sales method
105,926 158888.3 238332.4 357498.6 All assets are increased by % sales method
9169941 13754912 20632367 30948551
14670716 22006074 33009112 49513667

562500 843750 1265625 1898438

552411 828616.5 1242925 1864387

3365129 5047694 7571541 11357311

126461.3 189691.9 284537.8 426806.7

3491591 5237386 7856079 11784118
 641250 961875 1442813 2164219
2505305 3757958 5636937 8455405
3146555 4719833 7079749 10619624
7190557 10785835 16178753 24268129

211997.3 317995.9 476993.8 715490.7

48762 73143 109714.5 164571.8

325,683 488524.5 732786.8 1099180
235,451 353176.9 529765.3 794648
821893.5 1232840 1849260 2773891

4545824 6818735 10228103 15342154

513220.5 769830.8 1154746 1732119
29488.5 44232.75 66349.13 99523.69
70,783 106174.1 159261.2 238891.8
956,943 1435415 2153122 3229683
6116258 9174387 13761581 20642372
6938152 10407228 15610841 23416262
14128709 21193063 31789594 47684391
Income Statement 0% 5% 7.50%
2018 2019 2020 2021 2022 2023 2024 2024 2024
SALES 5453221 5120444 4177951 5602160 7,105,233 7,341,165 7,341,165 7708223 7891752

Cost of Sal 4262573 4004021 3301617 4485600 5883486 5858052 5,858,052 6150955 6297406

Gross Prof 1190648 1116423 876334 1116560 1,221,747 1,483,113 1,483,113 1,557,269 1,594,346
Selling and 785010 665377 479685 538891 677395 582571 582571 611699.6 626263.8
Administra 191387 184684 167647 172057 191950 208993 208,993 219442.7 224667.5
Impaireme - - - 61923 3074 73084 73084 76738.2 78565.3
Other Oper 15820 19978 8461 50465 19386 101414 101,414 106484.7 109020
Operating 198341 246384 220541 293224 336090 517051 517,051 542903.6 555829.8
Other Inc 36923 31681 84041 91580 74405 97691 97,691 102575.6 105017.8
EBIT 235354 278065 304582 384804 410495 614742 614,742 645479.1 660847.6
Finance Co 88142 165076 190050 117758 163477 283545 283,545 283,545 283,545
Profit Bef 147212 112998 114532 267046 247,018 331,197 331,197 361,934 377,303
Taxation 45106 12173 40224 71825 45132 66239.4 66,239 72386.82 75460.53
Profit aft 102106 100825 74308 195221 201,886 264,958 264,958 289,547 301,842
Earning Pe 4.99 4.93 3.63 9.54 8.22 9.78
RE 238461.8 238461.8 260592.6 271657.9

0% 5% 7.50%
Column 1 2018 2019 2020 2021 2022 2023 2024 2024 2024
property, 1,223,549 1,177,145 1,638,058 1,634,795 1628161 2,306,831 2306831 2422173 2479843
intangible 40,297 26,696 25,516 211 -
long-term 67,287 54,504 52,037 52,505 70915 78,479 78,479 82402.95 84364.93
loan relate 40,000 40,000
long term 54,360 44,628 23,974 34,147 38632 37,261 37,261 39124.05 40055.58

long term d 25,884 21,205 17,875 36,419 38138 22,218 22,218 23328.9 23884.35
deffered taxation 43,878 - 29,093
1,451,377 1,368,056 1,797,460 1,787,170 1775869 2,444,789 2444789 2567028 2628148
CURRENT ASSETS
store, spar 15,772 16,906 13,593 18,491 22735 30,341 30,341 31858.05 32616.57
stock in tr 1,015,911 917,368 1,085,933 1,225,895 1625411 1,437,793 1,437,793 1509683 1545627
trade debt-1,164,907 1,461,014 1,039,773 1,219,678 1628302 1,907,525 1,907,525 2002901 2050589
loans and 199,686 98,786 156,048 277,245 221950 277,322 277,322 291188.1 298121.1
loan to related party 40,000
short term 51,360 41,206 34,038 31,676 26821 31,864 31,864 33457.2 34253.8
other recei 16,388 13,891 104,579 184,323 113633 62,053 62,053 65155.65 66706.97
taxes refun 291,573 280,934 250,706 192,661 207054 182,994 182,994 192143.7 196718.6
short term 42,275 32,195 32,195 30,000 140000 191,000 191,000 200550 205325
cash and b 21,420 76,625 40,635 44,476 223671 47,078 47,078 49431.9 50608.85
2,819,292 2,978,925 2,757,500 3,224,445 4209577 4,167,970 4167970 4326936.64480567.7
TOTAL A4,270,669 4,346,981 4,554,960 5,011,615 5985446 6,612,759 6612759 6893965 7108716
0 281206 495956.9
EQUITIES AND LIABILITIES
SHARE C 250000 250,000 250,000 250000 250000 250,000 250000 250000 250000
issued, sub 181,864 204,597 204,597 204597 204597 245516 245516 245516 245516
reserves
capital reserves
share prem 828,666 903,660 40,543 45,304

revaluatio
n surplus
on
property,
plant and
equipmen
t 509,131 472,012 877,100 849056 830273 1,495,613 1,495,613 1,495,613 1,495,613

other reserves 58017 56,205 56,205 56,205 56,205

917,643 894,360 888290 1,551,818 1,551,818 1,551,818 1,551,818
Revenue reserve
general reserves 285000 285000 285000 285,000 285,000 285,000 285,000
accumulated profit 647783 841416 967825 1,113,469 1,113,469 1,113,469 1,113,469
932783 1126416 1252825 1398469 1636931 1659062 1670127
Total Equi1519661 1580269 2055023 2225373 2345712 3195803 3434265 3456396 3467461
NON-CURRENT LIABILITIES
long term 69,965 89,635 120,122 152,498 183222 94221 94221 94221 94221
long term diminishing musharaka 16000 333333 333333 333333 333333
deffered grant 2,077 1,155 2251 21,672 21,672 21,672 21,672
long term 142592 154049 138527 75589 144012 144,748 144,748 144,748 144,748
deffered ta 9000 - 15,453 - 8379 104,645 104,645 104,645 104,645
221,557 243,684 276,179 229,242 353864 698,619 698,619 698,619 698,619
CURRENT LIABLITIES
trade and o1,301,943 1,192,513 900,926 1,569,174 1790697 2,020,366 2,020,366 2121384 2171893
current por 68298 80356 1662 2407 69110 228,098 228,098 228,098 228,098
unclaimed 4,756 5,980 6,687 7,551 6826 13,106 13,106 13,106 13,106
accrued ma 16,465 39,432 35,173 22,479 45298 31,459 31,459 31,459 31,459
short term 1,137,989 1,204,747 1,051,551 847,505 1373939 425,308 425,308 425,308 425,308
2,529,451 2,523,028 2,223,758 2,557,000 3285870 2,718,337 2718337 2819355.32869864.4
TOTAL LI2,751,008 2,766,712 2,499,937 2,786,242 3639734 3,416,956 3,416,956 3,517,974 3,568,483
TOTAL EQ4,270,669 4,346,981 4,554,960 5,011,615 5985446 6,612,759 6,851,221 6,974,370 7,035,944
EFN -238,462 -80,405 72,772
 10% 15% 20% 25% 50%
2024 2024 2024 2024 2024
8075282 8442340 8809398 9176456 11011748

6443857 6736760 7029662 7322565 8787078

1,631,424 1,705,580 1,779,736 1,853,891 2,224,670

640828.1 669956.6 699085.2 728213.8 873856.5
229892.3 240341.9 250791.6 261241.3 313489.5
80392.4 84046.6 87700.8 91355 109626
111555.4 116626.1 121696.8 126767.5 152121
568756.1 594608.6 620461.2 646313.8 775576.5 Projected S
107460.1 112344.7 117229.2 122113.8 146536.5 0%
676216.2 706953.3 737690.4 768427.5 922113 5%
283,545 283,545 283,545 283,545 283,545 10%
392,671 423,408 454,145 484,883 638,568 15%
78534.24 84681.66 90829.08 96976.5 127713.6 20%
314,137 338,727 363,316 387,906 510,854 25%
50%
282723.3 304854 326984.7 349115.4 459769

10% 15% 20% 25% 50%

2024 2024 2024 2024 2024
2537514 2652856 2768197 2883539 3460247

86326.9 90250.85 94174.8 98098.75 117718.5

40987.1 42850.15 44713.2 46576.25 55891.5

24439.8 25550.7 26661.6 27772.5 33327

2689268 2811507 2933747 3055986 3667184

33375.1 34892.15 36409.2 37926.25 45511.5

1581572 1653462 1725352 1797241 2156690
2098278 2193654 2289030 2384406 2861288
305054.2 318920.3 332786.4 346652.5 415983
0 0 0 0 0
35050.4 36643.6 38236.8 39830 47796
68258.3 71360.95 74463.6 77566.25 93079.5
201293.4 210443.1 219592.8 228742.5 274491
210100 219650 229200 238750 286500
51785.8 54139.7 56493.6 58847.5 70617
4584767 4793165.55001564 5209962.56251955
 7274035 7604673 7935311 8265949 9919139
661275.9 991913.8 1322552 1653190 3306380

250000 250000 250000 250000 250000

245516 245516 245516 245516 245516

1,495,613 1,495,613 1,495,613 1,495,613 1,495,613

56,205 56,205 56,205 56,205 56,205

1,551,818 1,551,818 1,551,818 1,551,818 1,551,818

285,000 285,000 285,000 285,000 285,000

1,113,469 1,113,469 1,113,469 1,113,469 1,113,469
1681192 1703323 1725454 1747584 1858238
3478526 3500657 3522788 3544918 3655572

94221 94221 94221 94221 94221

333333 333333 333333 333333 333333
21,672 21,672 21,672 21,672 21,672
144,748 144,748 144,748 144,748 144,748
104,645 104,645 104,645 104,645 104,645
698,619 698,619 698,619 698,619 698,619

2222403 2323421 2424439 2525458 3030549

228,098 228,098 228,098 228,098 228,098
13,106 13,106 13,106 13,106 13,106
31,459 31,459 31,459 31,459 31,459
425,308 425,308 425,308 425,308 425,308
2920373.63021391.93122410.23223428.53728520
3,618,993 3,720,011 3,821,029 3,922,048 4,427,139
7,097,519 7,220,668 7,343,817 7,466,966 8,082,711
176,516 384,005 591,494 798,983 1,836,428
Increase in assets required Addition To RE EFN
0 238461.84 -238462
281206.1 260592.6 -80405
661275.9 282723.3 176516
991913.9 304854 384005
1322552 326984.7 591495
1653190 349115.4 798983
3306380 459769 1836428
Initial Investment Cashflow

(1) Installed cost of new asset

Cost of proposed Machine 314,495
Installation Cost 86486.125
Total Installed cost 400981.125 Outflow
(2) After-tax proceeds from sale of present Machine
Proceeds from sale of present Machine 264,495
Tax on sale of present Machine(27.5%) 46142.64875
Total tax after proceeds 218,352 inflow
Book Value 244,495

(3) Change in net working capital 289,927

Initial Investment Cashflow 472,555
Current Assets Old New Change
store, spare parts and loose tools 30,341 36409.2 6068.2
stock in trade 1,437,793 1725351.6 287558.6
trade debt- unsecured 1,907,525 2289030 381505
loans and advances 277,322 332786.4 55464.4
loan to related party secured 0
short term prepayments 31,864 38236.8 6372.8
other receivables 62,053 74463.6 12410.6
taxes refunds due from govt. 182,994 219592.8 36598.8
short term investments 191,000 229200 38200
cash and bank balance 47,078 56493.6 9415.6
TCA 4167970 5001564 833594

Current Liabilities Old New Change

trade and other payables 2,020,366 2424439.2 404,073
current portion of long term financing 228,098 273717.6 45,620
unclaimed dividend 13,106 15727.2 2,621
accrued markup 31,459 37750.8 6,292
short term borrowing secured 425,308 510369.6 85,062

TCL 2718337 3262004.4 543667.4

Sales are expected to increase by 20%
Change in NWC 289,927

Incremental Cashflow with proposed machine

Years 1 2 3
Revenue 7341165 7341165 7341165
(Expenses) 966062 966062 966062
Earning Before Depreciation 6375103 6375103 6375103
(Depreciation) 80196.225 128313.96 76186.41
EBIT 6294906.775 6246789.04 6298917
(Tax)27.5% 1731099.425 1717866.986 1732202
Net operating Profit after taxes 4563807.35 4528922.054 4566715
Depreciation 80196.225 128313.96 76186.41
Incremental Cashflow 4644003.575 4657236.014 4642901

Incremental Cashflow with Present Machine

Years 1 2 3
Revenue 7541165 7541165 7541165
(Expenses) 986062 986062 986062
Earning Before Depreciation 6555103 6555103 6555103
(Depreciation) 29339.4 29339.4 12224.75
EBIT 6525763.6 6525763.6 6542878
(Tax)27.5% 1794584.99 1794584.99 1799292
Net operating Profit after taxes 4731178.61 4731178.61 4743587
Depreciation 29339.4 29339.4 12224.75
Incremental Cashflow 4760518.01 4760518.01 4755811

Terminal Cashflows

After tax proceeds from the sale of new assets

Proceeds from the sale of new asset 72905.6590909
tax on the sale of new asssets 52856.6028409
20049.05625
After tax proceeds from the sale of old assets
Proceeds from the sale of old asset 10024.528125
tax on the sale of old asssets 2756.74523438
7267.78289063
Chnge in net working capital 289,927
Terminal cashflows 302,708
 Cost of Proposed Machine
Depreciation 3 years
cost of present machine depreciation
Book value
B. value -(Cost of P.machinery - Dep)
Tax on sale of present Machine

Berger Paints Revenue and Expenses

Proposed Machine
Year
1
2
3
4
5

Depreciation Expense For Berger Paints

Proposed Machine
Years
1
2
3
4
5
6

Present machine
years
1
2
3
4
4 5 6 5
7341165 7341165 6
 966062 966062
6375103 6375103
48117.74 48117.74 20049.06
6326985 6326985 -20049.06
1739921 1739921 -5513.49
4587064 4587064 -14535.57
48117.74 48117.74 20049.06
4635182 4635182 5513.494

4 5 6
7541165 7541165 0
986062 986062 0
6555103 6555103 0
0 0 0
6555103 6555103 0
1802653 1802653 0
4752450 4752450 0
0 0 0
4752450 4752450 0
 264,495
187791.45
76,704
244,495
167,791
46142.64875

Present Machine
Revenues Expenses Revenue Expenses
7341165 966062 7541165 9866062
7341165 966062 7541165 9866062
7341165 966062 7541165 9866062
7341165 966062 7541165 9866062
7341165 966062 7541165 9866062

MACRS dep %
400981.125 20% 80196.225
400981.125 32% 128313.96
400981.125 19% 76186.41375
400981.125 12% 48117.735
400981.125 12% 48117.735
400981.125 5% 20049.05625
100%

244,495 12% 29339.4

244,495 12% 29339.4
244,495 5% 12224.75
Because present machine is at the end of 0
of the 3 year of recovery 0
cost 0
Cost of Capital

1)Cost of Debt (kd)= Interest(1-tax rate)/Bond at year 0

Bond at year 0= Amount Recived
interest 283545
tax rate 27.50%

Bond at year 0 12135798

cost of debt 0.01693915183822

2) Cost of preffered dividends= Preferrence dividend/

sellimg price Pd/Po

Prefference dividend 75559

selling price 4

Cost of prefferef dividends 18889.75

3) cost of equity
Re= Rf +beta(Rm -Rf)
rf 16.70%
beta 0.729
Rm 3.50%
R= Rf +beta(Rm -Rf) 26.322800%
WACC Weighted average cost of capital

Ra=We(Re)+Wd(Rd)(1-t)

Tax 27.50%
We 30%
Wd 42.50%

Re 25.20%
Rd 14.99%

Ra 12.18%
Without Tax and BC

Re 25.20% EBIT 614742

Rd 14.99%

E D D/E re ra rd rb VL
100 0 0 25.2 25.2 14.99 25.2 24394.52
90 10 0.11 26.33444 25.2 14.99 25.2 24394.52
80 20 0.25 27.7525 25.2 14.99 25.2 24394.52
70 30 0.43 29.57571 25.2 14.99 25.2 24394.52
60 40 0.67 32.00667 25.2 14.99 25.2 24394.52
50 50 1.00 35.41 25.2 14.99 25.2 24394.52
40 60 1.50 40.515 25.2 14.99 25.2 24394.52
30 70 2.33 49.02333 25.2 14.99 25.2 24394.52
20 80 4.00 66.04 25.2 14.99 25.2 24394.52
10 90 9.00 117.09 25.2 14.99 25.2 24394.52

180
160 Chart Title
140
120
100
80
60
40
20
0
1 2 3 4 5 6 7 8 9 10

D/E re ra rd
 With Tax and No BC

Re 25.20% EBIT 614742

Rd 14.99%

VU E D Tax D/E re ra rd(1-t)

24394.52 100 0 5% 0 25.2 25.2 14.2405
24394.52 90 10 10% 0.11 26.33444 145.12 13.491
24394.52 80 20 15% 0.25 27.7525 226.066 12.7415
24394.52 70 30 20% 0.43 29.57571 272.535 11.992
24394.52 60 40 25% 0.67 32.00667 289.024 11.2425
24394.52 50 50 30% 1.00 35.41 280.03 10.493
24394.52 40 60 35% 1.50 40.515 250.05 9.7435
24394.52 30 70 40% 2.33 49.02333 203.581 8.994
24394.52 20 80 45% 4.00 66.04 145.12 8.2445
24394.52 10 90 50% 9.00 117.09 79.164 7.495

Chart Title
350

300

250

200

150

100

50

0
1 2 3 4 5 6 7 8 9

D/E re ra rd(1-t)
 With Tax and Bankruptcy

Re 25.20% EBIT 614742

Rd 14.99%

rb VL VU E D Tax D/E re
25.2 24394.52 24394.52 100 0 5% 0 25.2
25.2 4236.094 24394.52 90 10 10% 0.11 26.33444
25.2 2719.303 24394.52 80 20 15% 0.25 27.7525
25.2 2255.644 24394.52 70 30 20% 0.43 29.57571
25.2 2126.958 24394.52 60 40 25% 0.67 32.00667
25.2 2195.272 24394.52 50 50 30% 1.00 35.41
25.2 2458.476 24394.52 40 60 35% 1.50 40.515
25.2 3019.643 24394.52 30 70 40% 2.33 49.02333
25.2 4236.094 24394.52 20 80 45% 4.00 66.04
25.2 7765.424 24394.52 10 90 50% 9.00 117.09

itle Chart Title

140

120

100

80

60

40

20

6 7 8 9 10 0
1 2 3 4 5 6 7 8

rd(1-t) D/E re ra rd(1-t)

 ra rd(1-t) rb VL VU
25.2 14.2405 25.2 24394.52 24394.52
23.71599 13.491 25.2 25920.99 24394.52
22.23385375 12.7415 25.2 27648.92 24394.52
20.7543942857143 11.992 25.2 29619.85 24394.52
19.27895 11.2425 25.2 31886.7 24394.52
17.80993 10.493 25.2 34516.81 24394.52
16.3521525 9.7435 25.2 37593.95 24394.52
14.91686 8.994 25.2 41211.22 24394.52
13.53778 8.2445 25.2 45409.37 24394.52
12.38355 7.495 25.2 49641.82 24394.52

Chart Title

4 5 6 7 8 9 10

re ra rd(1-t)
Net Present Value Present values of inflows- present value of outflows
(Investing) (Operating)
Year cash outflows CoF/(1+r)^t Cash inflows
1 97938 87304.3323230523 569867
2 111639 88712.5506752338 46577
3 112821 79917.8216768288 427980
Sum 255934.704675115

r (WACC) 12.18%

IRR internal rate of return

CIF/(1+r)^t CF
507993.403458727 420689.071135675
37011.837017533 -51700.7136577008
303163.678049735 223245.856372907
848168.918525995
NPV 592234.213850881