Confidence Cement LTD

INCOME STATEMENT
2013 2014 2015
Sales Revenue 3481284388.00 3634989180.00 5530112567.00
cost of goods sold -2765198852.00 -3028576709.00 -4633055191.00
Gross Profit 716085536.00 606412471.00 897057376.00
Operting Expenses: -120160003.00 -162809692.00 -236987748.00
Administrative expense -68992123.00 -90407193.00 -125698670.00
selling distribution expenses -51167880.00 -75123989.00 -118352620.00
other operting income 0.00 2721490.00 7063542.00
Profit from the operations activity 595925533.00 443602779.00 660069628.00
Other income 36676531.00 0.00 0.00
Finance income 0.00 22348089.00 35276873.00
Finance cost -100906479.00 -65010833.00 -119831174.00
Profit Before contribution to WPPF 531695585.00 400940035.00 575515327.00
Contribution to Workers' Profit Participati -25318837.00 -20047002.00 -28775767.00
Profit After workers profit participation fun 506376748.00 380893033.00 546739560.00
Non operating income/loss 11835912.00 -29549983.00
Share of profit/(loss)of associates (net of tax) -21658851.00 252441685.00
Profit Before Tax 506376748.00 371070094.00 769631262.00
Income Tax Expenses
Current Tax -128239520.00 -116127487.00 -147904069.00
Deferred Tax Expense -14136820.00 -15666300.00 44257917.00
Profit after Tax for the Year 364000408.00 239276307.00 665985110.00
Others comprehensive income 127707078.00 -52079048.00 -
Total Comprehensive Income for the Year 491707486.00 187197259.00 665985110.00

Dividend 29630629 11296721 153287463

Retain Earning 462076857 175900538 512697647
Earnings Per Share (EPS) 8.09 5.32 14.80
Number of Shares used to compute EPS 44993520 44993520 44993520
Price per share 10 10 10
STATEMENT OF FINANCIAL POSITION

2013 2014
ASSETS:

Non-Current Assets: 2,826,215,591 2,618,018,666

Property, Plant and Equipment-Carrying Value 2,009,477,427 1,935,795,338
capital work in progress 108,267,454 316,435,955
Investment in associates 74,040,241
Investment 708,470,710 291,747,132

Current Assets: 1,760,886,450 2,443,434,324

Inventories 233,412,271 396,303,714
trade receivable/ Book debts 583,170,584 739,051,832
Others Receivable 72,933,623 90,529,372
Advances,Deposits and prepayments 763,282,961 1,023,334,440
Short Term Investment 126,099,000
Cash and Cash Equivalents 108,087,011 68,115,966
TOTAL ASSETS 4,587,102,041 5,061,452,990

SHAREHOLDERS' EQUITY AND LIABILITIES:

Shareholders' Equity: 2,929,474,547 2,898,245,046

Share Capital 449,935,200 449,935,200
Share Premium 658,089,549 658,089,549
Fair value reserve -9,167,533
Retain earnings 721,220,353 684,362,720
Revulation reserve 743,162,356
Reserve 371,862,754 0
Capital and Revaluation Surplus 728,366,691 371,862,754

Non-Current Liabilities: 410,004,465 405,021,448

Long Term loan(Secured) 78,725,253 67,043,643
Deferred tax Liability 303,247,882 302,316,169
Deferred Liability( gratuity) 28,031,330 0
Defined benefit obligation (gratuity) 35661636
Current Liabilities: 1,247,623,029 1,758,186,496
Secured Short Term loans 856,009,317 1,303,282,125
Income Tax Payable 157837195 133,868,341
Current portion of longterm loans 40920165 28080000
Trade payable 192,856,352 167770934
Provision for WPPF and welfare fund 0 20047002
Others liability 0 105138094
Total Liabilities 1,657,627,494 2,163,207,944
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIE4,587,102,041 5,061,452,990

Ratio Analysis

Current Ratio 1.41 1.39

Quick Ratio 1.22 1.16

Cash Ratio 0.09 0.04

Total Debt ratio 36.14% 42.74%

Debt-Equity Ratio 0.57 0.75
Equity Multiplier 0.43 0.25

Inventory Turnover -11.85 -7.64

Receivables Turnover 5.97 4.92
Total Asset Turnover 0.76 0.72

Profit Margin 10.46% 6.58%

Return on Asset /ROA 7.94% 4.73%
Return on Equity /ROE 12.43% 8.26%
Retaintion Ratio 0.94 0.94
Payout ratio 6.03% 6.03%
Earnings Per Share 8.09 5.32
Price-Earnings Ratio 1.24 1.88
2015

3,570,565,210
1,853,306,834
1,194,498,749
279,211,141
243,548,486

2,675,434,654
381,681,467
762,689,419
118,852,516
1,129,272,069
144,599,563
138,339,620
6,245,999,864

3,318,619,578
449,935,200
658,089,549
0
1,163,470,680
675,261,395
371,862,754
0

288,271,395
3,150,562
235,424,598
0
49696235
2,639,108,891
1,962,552,995
182413304
17280000
187691730
28775767
260395095
2,927,380,286
6,245,999,864

1.01

0.87
0.05

46.87%
0.88
0.12

-12.14
7.25
0.89

12.04%
10.66%
20.07%
0.77
23.02%
14.80
0.68
 Sales growth

2013
2014
2015
2016
2017
2018
2019
2020

Confidence Cement LTD

INCOME STATEMENT
2015
Sales Revenue 5530112567.00
cost of goods sold -4633055191.00
Gross Profit 897057376.00
Operting Expenses: -236987748.00
Administrative expense -125698670.00
selling distribution expenses -118352620.00
other operting income 7063542.00
Profit from the operations activity 660069628.00
Other income 0.00
Finance income 35276873.00
Finance cost -119831174.00
Profit Before contribution to WPPF 575515327.00
Contribution to Workers' Profit Participation/Welfare Funds -28775767.00
Profit After workers profit participation fund 546739560.00
Non operating income/loss -29549983.00
Share of profit/(loss)of associates (net of tax) 252441685.00
Profit Before Tax 769631262.00
Income Tax Expenses -103646152.00
Current Tax -147904069.00
Deferred Tax 44257917.00
Profit after Tax for the Year 665985110.00
Others comprehensive income 0.00
Total Comprehensive Income for the Year 665985110

Dividend 153287463.00
Retain Earning 512,697,647
Earnings Per Share (EPS) 14.80
Number of Shares used to compute EPS 44993520.00
Price per share 10

ROA 10.66%
ROE 20.07%
Payout Ratio 0.23
Retaintion Ratio 0.77
 TK growth rate
3,481,284,388
3,634,989,180
5,530,112,567
6264290224 13.28%
7288704313.5 16.35%
8313118403 14.05%
9337532492.5 12.32%
10361946582 10.97%

2016 2017 2018 2019 2020

6264290224 7288704313.5 8313118403 9337532492.5 10361946582
-5248324920.3648 -6106426044.8 -6964378904.1 -7822390385.1 -8680506610.4
1016186595.5328 1182333103.9 1348450905 1514580056.5 1680729488.69
-268459720.9344 -312352885.31 -356238465.69 -400127044.67 -444020981.47
-142391453.376 -165672456 -188949436.07 -212228006.6 -235509418.92
-134069847.936 -155990268.07 -177906900.74 -199825030.91 -221745836.8
8001580.3776 9309838.76934 10617871.1164 11925992.838 13234274.2523
747726874.5984 869980218.595 992212439.308 1114453011.83 1236708507.23
0 0 0 0 0
39961641.7344 46495370.158 53027969.6652 59561015.5279 66094858.9313
-135744753.9072 -157939021.17 -180129453.65 -202321402.33 -224516060.17
651943762.4256 758536567.582 865110955.327 971692625.024 1078287305.99
-32597188.8576 -37926829.236 -43255548.743 -48584632.349 -53914366.517
619346573.568 720609738.346 821855406.584 923107992.675 1024372939.47
-33474220.7424 -38947255.834 -44419345.278 -49891808.617 -55364940.022
285965940.768 332721372.084 379468724.861 426219271.764 472975525.877
871838293.5936 1014383854.6 1156904786.17 1299435455.82 1441983525.33
117410462.99825 136607073.698 155800367.553 174994972.836 194191921.356
-167545729.3632 -194939456.11 -222328449.7 -249719314.7 -277113523.52
50135368.3776 58332501.1073 66528217.5129 74724493.9105 82921770.8925
871838395.60625 1014383973.29 1156904921.53 1299435607.87 1441983694.05
0 0 0 0 0
871838395.60625 1014383973.29 1156904921.53 1299435607.87 1441983694.05

173644038.0864 202034838.314 230420733.097 258808567.414 287199867.259

580783894.5216 675742061.276 770683820.885 865632067.618 960591905.436
19.38 22.55 25.71 28.88 32.05
44993520.00 44993520.00 44993520.00 44993520.00 44993520.00
 10 10 10 10 10

12.32% 12.32% 12.32% 12.32% 12.32%

22.36% 22.17% 21.64% 20.92% 20.11%
0.20 0.20 0.20 0.20 0.20
0.67 0.67 0.67 0.67 0.67
Balance Sheet

ASSETS: 2015 2016 2017

Non-Current Assets: 3,570,565,210 4044736269.9 4706050650.01469

Property, Plant and Equipment-Carrying Value 1,853,306,834 2099425981.6 2442682129.53948
capital work in progress 1,194,498,749 1353128182.9 1574364640.76599
Investment in associates 279,211,141 316290380.52 368003857.740605
Investment 243,548,486 275891724.94 321000021.968621

Current Assets: 2,675,434,654 3030732376.1 3526257119.53557

Inventories 381,681,467 432368765.82 503061059.028778
trade receivable/ Book debts 762,689,419 863974573.84 1005234416.66656
Others Receivable 118,852,516 134636130.12 156649137.400205
Advances,Deposits and prepayments 1,129,272,069 1279239399.8 1488395041.62448
Short Term Investment 144,599,563 163802384.97 190584074.908406
Cash and Cash Equivalents 138,339,620 156711121.54 182333389.907136
TOTAL ASSETS 6,245,999,864 7075468645.9 8232307769.55026

SHAREHOLDERS' EQUITY AND LIABILITIES:

Shareholders' Equity: 3,318,619,578 3899403472.5 4575145533.79748

Share Capital 449,935,200 449,935,200 449,935,200
Share Premium 658,089,549 658089549 658089549
Retain earnings 1,163,470,680 1,744,254,575 2,419,996,636
Revulation reserve 675,261,395 675261395 675261395
Reserve 371,862,754 371862754 371862754
Non-Current Liabilities: 288,271,395 288271395 388271395
Long Term loan(Secured) 3,150,562 3150562 103150562
Deferred tax Liability 235,424,598 235424598 235424598
Defined benefit obligation (gratuity) 49,696,235 49696235 49696235
Current Liabilities: 2,639,108,891 2887793778.7 3268890840.59414
Secured Short Term loans 1,962,552,995 1962552995 1962552995
Current portion of longterm loans 17,280,000 241039426 587373577
Trade payable 187691730 212617191.74 247380102.594144
Provision for WPPF and welfare fund 28,775,767 28775767 28775767
Others liability 260,395,095 260395095 260395095
Income tax payable 182,413,304 182413304 182413304
Total Liabilities 2,927,380,286 3176065173.7 3657162235.59414
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 6,245,999,864 7075468646.3 8232307769.39163

EFN 0 0 0
Net Working Capital 36,325,763 142,938,597 257,366,279
Total debt/euity 0.88 0.81 0.80

internal growth rate 8.94% 8.94% 8.94%

sustainable growth rate 18.27% 17.50% 17.33%
Change in NWC 106,612,834 114,427,682
Change in debt ratio
Change in current asset 355,297,722 495,524,743
Change in current liabilites 248,684,888 381,097,062
 2018 2019 2020

5367250766.3 6028496060.8 6689822078.6

2785878968.7 3129099257.7 3472361446.3
1795562872.8 2016776218.7 2238016569.9
419708399.75 471416474.6 523130861.87
366100525.06 411204109.74 456313200.58

4021696244.8 4517169222.2 5012702685.9

573741137.82 644426046 715119583.25
1146469852.2 1287714938 1428977266.7
178658341.2 200669048.84 222682443.5
1697514545 1906648336.9 2115807659.5
217361137.43 244140029.56 270922190.81
207951231.19 233570822.87 259193542.14
9388947011.2 10545665283 11702524764

5345829354.7 6211461422.3 7172053327.7

449,935,200 449,935,200 449,935,200
658089549 658089549 658089549
3,190,680,457 4,056,312,524 5,016,904,430
675261395 675261395 675261395
371862754 371862754 371862754
388271395 588271395 588271395
 103150562 303150562 303150562
235424598 235424598 235424598
49696235 49696235 49696235
3654846261 3745932465.3 3942200041.9
1962552995 2362552995 2562552995
938572093 594899018 556403072
282137007.01 316896286.27 351659808.88
28775767 28775767 28775767
260395095 260395095 260395095
182413304 182413304 182413304
4043117656 4334203860.3 4530471436.9
9388947010.7 10545665283 11702524765

0 0 0
366,849,984 771,236,757 1,070,502,644
0.76 0.70 0.63

8.94% 8.94% 8.94%

16.85% 16.19% 15.46%
109,483,705 404,386,773 299,265,887

495,439,125 495,472,977 495,533,464

385,955,420 91,086,204 196,267,577
 2016 2017 2018
Change NWC 106,612,834 114,427,682 109,483,705
capital expendeture 474,171,060 661,314,380 661,200,116
EBIT(1-T) 754427830.59535 877776780.898 1001104418.6
Depreciaion 187688682.751035 218375782.381 249057579.81
OCF 942116513.346385 1096152563.28 1250161998.4
FCF 361,332,619 320,410,502 479,478,177
p/e 0.52 0.44 0.39
stock price 10 10 10
outstanding share 44993520 44993520 44993520
Cash

OCF 942116513.346385 1096152563.28 1250161998.4

NWC 106,612,834 114,427,682 109,483,705
NCS 474,171,060 661,314,380 661,200,116
CFFA 1,522,900,408 1,871,894,625 2,020,845,820
 2019 2020
404,386,773 299,265,887
661,245,294 661,326,018
1124440482.98704 1247791603.971
279741473.637353 310429113.2954
1404181956.62439 1558220717.266
338,549,889 597,628,812
0.35 0.31
10 10
44993520 44993520
259193542.1406

1404181956.62439 1558220717.266
404,386,773 299,265,887
661,245,294 661,326,018
2,469,814,024 2,518,812,622
 Step 1
TRADEDATE CLSPRC DGEN/DSE-X
31/1/2009 369.75 2,807.61
30/12/2009 1,398.25 2.78 4,535.53 0.62
31/1/2010 1581.5 5,876.55
30/12/2010 293.40 -0.81 8,290.41 0.41
01/01/2011 278.3 8,304.59
30/12/2011 124.50 -0.55 5,257.61 -0.37
1/1/2012 91.5 5,351.75 Step 3
30/12/2012 104.90 0.15 4,219.31 -0.21
1/1/2013 115.3 4,090.47 Step 4
30/12/2013 123.9 0.07 4,266.55 0.04
01/01/2014 149.8 4,286.15
30/12/2014 106.7 -0.29 4,864.96 0.14
1/1/2015 97.2 4,941.52
30/12/2015 86.7 -0.11 4,629.64 -0.06
avarage 0.08
 rf 6.50%
beta 2.01
rm 8.04%
capm 9.60%

Total equity Debt Interest expenses cost of debt cost of equity

3,318,619,578 1,982,983,557 122944980.53 5.35% 9.60%

Step 5 WACC
8%
 total value
5,301,603,135
 Market capitalization 449935200
Enerprise value 3,612,848,287
Present enterprise value 2457764908

2016 2017
present value 334537873.484456 320410501.52
value of the company 4,528,370,161.67
 2018 2019 2020
479478177.2 338549889.1 597628812.3