ASSESSMENT OF WORKING CAPITAL REQUIREMENTS

FORM # II : OPERATING STATEMENT (Rs. in Lakhs)

2006-07 2007-08 2008-09 2009-10 2010-11
S.No Particulars Audited Audited Audited Current Next
Actuals Actuals Actuals Year Year
Estimates Projections
1. GROSS SALES
(i) Sales 490.74 567.09 766.63 843.90 1265.85
(ii) Other Income 119.39 175.01 201.77 236.94 355.41
Total 610.13 742.10 968.40 1080.84 1621.26
2. (III) Excise Duty 53.81 73.29 69.63 52.96 79.44
3. NET SALES ( 1 - 2 ) 556.32 668.81 898.77 1027.88 1541.82
4. % age rise ( + ) or fall ( - ) in Net Sales as 0.00 0.00 0.00 0.00 0.00
compared to previous year
5. COST OF SALES
(i) Raw Materials ( including Stores and other
used in the process of manufacture
(a) Imported 0.00 0.00 0.00 0.00 0.00
(b) Indigenous 302.81 340.34 534.04 572.00 858.00
(ii) Other Spares
(a) Imported 0.00 0.00 0.00 0.00 0.00
(b) Indigenous 13.14 18.28 35.37 33.20 49.80
(iii) Power and Fuel 47.64 53.96 54.52 35.00 52.50
(iv) Direct Labour 15.74 15.86 17.80 22.00 33.00
(v) Repairs & Maintainence 61.05 61.95 71.80 136.00 204.00
(vi) Depreciation 18.59 18.31 19.56 20.00 30.00
(vii) SUB - TOTAL ( Items (i) to (vi) 458.97 508.70 733.09 818.20 1227.30
(viii) Add : Opening Stock-in-Process 11.40 12.74 11.45 5.18 0.58
Sub-Total 470.37 521.44 744.54 823.38 1227.88
(ix) Deduct : Closing Stock-in-Process 12.74 11.45 5.18 0.58 0.00
(x) COST OF PRODUCTION 457.63 509.99 739.36 822.80 1227.88

Form # II Operating Statement Cont…. (Rs. in Lakhs)

S.No Particulars 2006-07 2007-08 2008-09 2009-10 2010-11
Audited Audited Audited Current Next
Actuals Actuals Actuals Year Year
Estimates Projections
(ix) Add: Opening Stocks of WIP & Finished Goods 11.82 40.22 30.09 34.07 46.84
Sub-Total 469.45 550.21 769.45 856.87 1274.72
(xii) Deduct: Closing Stocks of WIP & Finished Goods 40.22 30.09 34.07 46.84 55.24
(xiii) Sub - Total ( Total of Cost of Sales ) 429.23 520.12 735.38 810.03 1219.48
6. Selling, General & Administrative Expenses 76.89 86.27 94.14 120.00 180.00
Salaries and Allowances 0.00 0.00 0.00 0.00 0.00
7. SUB - TOTAL ( 5 + 6 ) 506.12 606.39 829.52 930.03 1399.48
8. Operating Profit before Interest ( 3 - 7 ) 50.20 62.42 69.25 97.85 142.34
9. Interest 21.36 24.81 27.86 40.00 50.00
10. Operating Profit after Interest ( 8 - 9 ) 28.84 37.61 41.39 57.85 92.34
11. (i) Add Other Non-Operating Income
a) Other Income 1.10 0.09 8.83 0.20 0.30
Sub - Total ( Income ) 1.10 0.09 8.83 0.20 0.30
(ii) Deduct Other Non-Operating Expences
a) Preliminary Expenses Written Off 0.00 0.00 0.00 0.00 0.00
b) Others 0.00 0.00 0.00 0.00 0.00
Sub - Total ( Expenses ) 0.00 0.00 0.00 0.00 0.00
(iii) Net of other Non-Operating Income/Expenses 1.10 0.09 8.83 0.20 0.30
12. Profit before Tax / ( Loss ) 10 + 11(iii) 29.94 37.70 50.22 58.05 92.64
13. Provision for Taxes & deffered tax liabity 11.24 13.07 16.28 19.73 31.49
14. Net Profit / ( Loss ) { 12 -13 } 18.70 24.63 33.94 38.32 61.15
15. (a) Equity Dividend Paid including Dividend tax 8.53 8.75 8.75 8.75 8.75
(b) Dividend Rate 0.00 0.00 0.00 0.00 0.00
16. Retained Profit ( 14 - 15 ) 10.17 15.88 25.19 29.57 52.40
17. Retained Profit / Net Profit ( % age ) 54.39 64.47 74.22 77.17 85.69
###
FORM # III ANALYSIS OF BALANCE SHEET (Rs. in Lakhs)
S.No Particulars 2006-07 2007-08 2008-09 2009-10 2010-11
Audited Audited Audited Current Next
Actuals Actuals Actuals Year Year
Estimates Projections
CUR ENT LIABILITIES
1. Short Term Borrowings from Banks ( excluding
Bills Purchased Discounted
(i) From Applicant Bank 152.62 164.03 171.33 200.00 300.00
(ii) From Other Banks 0.00 0.00 0.00 0.00 0.00
(iii) ( of which Bills Purchased & Discounted ) 0.00 0.00 0.00 0.00 0.00
SUB - TOTAL ( A ) 152.62 164.03 171.33 200.00 300.00
2. Short Term Borrowings from others 0.00 0.00 0.00 0.00 0.00
3. Sundry Creditors ( Trade ) 57.97 91.73 98.48 23.80 35.80
4. Advance Payments from Customers / 0.00 10.81 0.26 0.50 1.00
Deposits from Dealers 0.00 0.00 0.00 0.00 0.00
5. Provision for Taxation(Including dividend tax) 13.29 15.89 18.89 21.47 33.23
6. Dividend Payable / Proposed Dividend 7.48 7.48 7.48 7.48 7.48
7. Other Statutory Liabilities ( due within one year ) 0.81 1.25 1.25 9.60 9.60
8. Deposits / Installments of Term Loan / DPG's / 0.00 0.00 0.00 0.00 0.00
Debentures, etc. ( due within one year ) 0.00 0.00 0.00 0.00 0.00
9. Other Current Liabilities & Provisions
Liabilities for capital goods 0.00 0.00 0.00 0.00 0.00
Liabilities for expenses 60.53 81.75 165.47 100.00 110.00
Others 0.00 0.00 0.00 0.00 0.00
SUB - TOTAL ( B ) 140.08 208.91 291.83 162.85 197.11
10. TOTAL CURRENT LIABILITIES 292.70 372.94 463.16 362.85 497.11
( Total of Items # 1 to 9 )

FORM # III ANALYSIS OF BALANCE SHEET

(Rs. in Lakhs)
S.No Particulars 2006-07 2007-08 2008-09 2009-10 2010-11
Audited Audited Audited Current Next
Actuals Actuals Actuals Year Year
Estimates Projections
TERM LIABILITIES
11. Debentures ( not maturing within one year ) 0.00 0.00 0.00 0.00 0.00
12. Preference Shares 0.00 0.00 0.00 0.00 0.00
( Redeemable after one year )
13. Term Loans ( excluding installments payable
within one year ) 21.56 10.67 137.17 120.00 200.00
14. Hire Purchase Loan ( excluding
installments due within one year ) 0.00 0.00 0.00 0.00 0.00
15. Term Deposits ( Repayable after one year ) 0.00 0.00 0.00 0.00 0.00
16. Other Term Liabilities
Liabilities for Capital Goods 0.00 0.00 0.00 0.00 0.00
Unsecured Loans from shareholders 0.00 0.00 0.00 0.00 0.00
Unsecured Loans from Others 0.00 0.00 0.00 10.00 0.00
17. TOTAL TERM LIABILITIES
( Total of Items # 11 to 16 ) 21.56 10.67 137.17 130.00 200.00
18. TOTAL OUTSIDE LIABILITIES 314.26 383.61 600.33 492.85 697.11
(Item 10 plus item 17)
NET WORTH

19. Ordinary Share Capital 74.81 74.81 74.81 74.81 74.81

20. General Reserve 14.61 16.92 20.32 23.72 27.12
21. Revaluation Reserve 0.00 0.00 0.00 0.00 0.00
22. Sales Tax Subsidy 0.00 0.00 0.00 0.00 0.00
Deffered Tax Liability 0.00 0.00 0.00 0.00 0.00
23. Surplus (+) or Deficit (-) in profit and loss Account 35.18 48.75 70.54 96.71 145.71
24. NET WORTH 124.60 140.48 165.67 195.24 247.64
25. TOTAL IABILITIES 438.86 524.09 766.00 688.09 944.75
( Total Items # 18 + 24 )
FORM # III ANALYSIS OF BALANCE SHEET (Rs. in Lakhs)
S.No Particulars 2006-07 2007-08 2008-09 2009-10 2010-11
Audited Audited Audited Current Next
Actuals Actuals Actuals Year Year
Estimates Projections
CURRENT ASSETS
26. Cash and Bank Balances 0.58 0.60 0.32 1.14 1.31
27. Investments ( other than Long Term Investments)
i) Government 0.00 0.00 0.00 0.00 0.00
ii) Fixed deposits with Banks 0.00 0.00 0.00 0.00 0.00
28. i) Receivables other than deferred &
Bills purchased and Discounted by Banks 130.91 181.87 182.40 180.10 270.20
ii) Export receivables ( including Bills Purchased
Discounted by Banks ) 0.00 0.00 0.00 0.00 0.00
29. Installments of deferred Receivables
( due within one year ) 0.00 0.00 0.00 0.00 0.00
30. Inventory :
i) Raw Materials ( including Stores and other
items used in the process of manufacture )
a) Imported 0.00 0.00
b) Indigenous 25.18 27.39 20.83 47.70 71.50
ii) Stocks-in-Process 12.74 11.45 5.18 55.20 82.80
iii) Finished Goods 40.22 30.09 34.07 44.10 61.10
iv) Other Consumable Spares
a) Imported 0.00 0.00 0.00 0.00 0.00
b) Indigenous 0.00 0.00 0.00 0.00 0.00
c) Other C/A 0.00 0.00 0.00 0.00 0.00
31. Advances to Suppliers of Raw Materials
and Stores and for Job work 46.04 25.83 32.92 40.00 50.00
32. Advance Payment of Taxes 6.00 8.00 5.50 10.00 15.00
33. Other Current Assets
a) Margins for L.C's and guarantees 0.00 0.00 0.00 0.00 0.00
b) Loans and Advances 32.62 17.84 39.54 70.00 80.00
34. TOTAL CURRENT ASSETS
( Total of Items # 26 to 33 ) 294.29 303.07 320.76 448.24 631.90
FORM # III ANALYSIS OF BALANCE SHEET (Rs. in Lakhs)
S.No Particulars 2006-07 2007-08 2008-09 2009-10 2010-11
Audited Audited Audited Current Next
FIXED ASSETS Actuals Actuals Actuals Year Year
Estimates Projections
35. Gross Block
( Land, Building & Machinery, Work-in-Progress ) 216.52 233.75 261.10 261.10 401.10
36. Depreciation to date 87.32 105.63 125.19 145.19 175.19
37. NET BLOCK ( Item # 35 - Item # 36 ) 129.20 128.12 135.91 115.91 225.91
38. Investment / Book Debts / Advances / Deposits
which are not Current Assets
I) a) Investments in Subsidiary Companies /
Affiliates 0.00 0.00 0.00 0.00 0.00
b) Others 0.00 0.00 0.00 0.00 0.00
II) Advances to Suppliers of Capital Goods
and Contract - Capital work in progress 0.00 64.54 269.41 80.00 43.00
III) Deferred tax asset 9.07 10.61 11.94 11.94 11.94

IV) Others - Deposits 6.30 17.75 27.98 32.00 32.00

FD with Bank 0.00 0.00 0.00 0.00 0.00
39. Non-Consumable Stores and Spares 0.00 0.00 0.00 0.00 0.00
40. Other Non-Current Assets including 0.00 0.00 0.00 0.00 0.00
due from Directors
41. TOTAL OTHER NON - CURRENT ASSETS 15.37 92.90 309.33 123.94 86.94
42. Intangible Assets ( Patents, Goodwill,
Preliminary Expenses, Doubtful Debts not 0.00 0.00 0.00 0.00 0.00
provided for & deposits etc. )
43. TOTAL ASSETS ( Total of Items # 34,37,41& 42) 438.86 524.09 766.00 688.09 944.75
44. TANGIBLE NET WORTH ( Items # 24 - 42 ) 124.60 140.48 165.67 195.24 247.64
45. NET WORKING CAPITAL
( Items # [ ( 17 + 24 ) - ( 37+ 41 + 42 ) ] 1.59 -69.87 -142.40 85.39 134.79
46. CURRENT RATIO { Item # 34 / 10 } 1.01 0.81 0.69 1.24 1.27
47. TOTAL OUTSIDE LIABILITIES
 TANGIBLE NET WORTH { Items # 18 / 44 ) 2.52 2.73 3.62 2.52 2.82
48. Total Term Liabilities / Tangible Net Worth 0.17 0.08 0.83 0.67 0.81
FORM # IV COMPARATIVE STATEMENT OF CURRENT ASSETS (Rs. in Lakhs)
S.No Particulars 2006-07 2007-08 2008-09 2009-10 2010-11
Audited Audited Audited Current Next
Actuals Actuals Actuals Year Year
Estimates Projections
A CURRENT ASSETS
1. Raw Materials ( Including Stores & Other
Items used in the Process of Manufacture )
(a) Imported : 0.00 0.00 0.00 0.00 0.00
Months' Consumption
(b) Indigenous : 25.18 27.39 20.83 47.70 71.50
Months' Consumption (1.00) (0.97) (0.47) (1.00) (1.00)
2. Other Consumable Spares, ( excluding those
included in 1 above )
(a) Imported : 0.00 0.00 0.00 0.00 0.00
Months' Consumption
(b) Indigenous : 0.00 0.00 0.00 0.00 0.00
Months' Consumption 0.00 0.00 0.00 0.00 0.00
3. Stock-in-Process 12.74 11.45 5.18 55.20 82.80
Months Cost of Production 0.00 0.00 0.08 0.81 0.81
4. Finished Goods 40.22 30.09 34.07 44.10 61.10
Months Cost of Sales (1.12) (0.69) (0.56) (0.65) (0.60)
5. Receivables other that Export deferred rec'bles
( including purchased and discounted by Banks) 130.91 181.87 182.40 180.10 270.20
Months Domestic Sales (3.20) (3.85) (2.86) (2.56) (2.56)
6. Export Receivables ( Including Bills Purchased & Disctd) 0.00 0.00 0.00 0.00 0.00
Months' Export Sales
7. Advances to Suppliers of Raw Materials,
Stores and Consumables 46.04 25.83 32.92 40.00 50.00
8. Other Current Assets including Cash and Bank
balances, Deposits, Advance payment of Taxes 39.20 26.44 45.36 81.14 96.31
and Margins for LC's and guarantees.
9. Total Current Assets
( To Agree with Item # 34 in Form # 3 ) 294.29 303.07 320.76 448.24 631.91
294.29 303.07 320.76 448.24 631.90

FORM # IV COMPARITIVE STATEMENT OF CURRENT LIABILITIES (Rs. in Lakhs)

S.No Particulars 2006-07 2007-08 2008-09 2009-10 2010-11
Audited Audited Audited Current Next
Actuals Actuals Actuals Year Year
Estimates Projections
B. CURRENT LIABILITIES
( Other than Bank Borrowings for working capital)
10. Creditors for Purchases of Raw Materials,
Stores and Spares 57.97 91.73 98.48 23.80 35.80
0.00 0.00 0.00 0.00 0.00
11. Advances from Customers 0.00 10.81 0.26 0.50 1.00
12. Statutory Liabilities 13.29 15.89 18.89 21.47 33.23
13. Other Current Liabilities 68.82 90.48 174.20 117.08 127.08
Other Provisions 0.00 0.00 0.00 0.00 0.00
Installments of Term loans
14. TOTAL 140.08 208.91 291.83 162.85 197.11
Computation Of Maximum Permissible Bank Finance for Working Capital (Rs. in Lakhs)
S.No Particulars 2006-07 2007-08 2008-09 2009-10 2010-11
Audited Audited Audited Current Next
Actuals Actuals Actuals Year Year
Estimates Projections
1. Total Current Assets
( Item # 9 in Form # IV ) 294.29 303.07 320.76 448.24 631.91
2. Other Current Liabilities 140.08 208.91 291.83 162.85 197.11
( Other than Bank Borrowings )
( Item # 14 in Form IV )
3. Working Capital Gap ( WCG ) 154.21 94.16 28.93 285.39 434.80
( Item # 1 - Item # 2 )
4. Minimum stipulated Net Working Capital ie 25%
of WCG / 25% of Total Current Assets as to case
may be depending upon the method of lending being 38.55 23.54 7.23 71.35 108.70
 applied ( Export Receivables to be excluded under
both methods )
5. Actual / Projected net working Capital 1.59 -69.87 -142.40 85.39 134.79
( Item # 45 in Form # III )
6. Item # 3 Minus Item # 4 115.66 70.62 21.70 214.04 326.10
7. Item # 3 Minus Item # 5 152.62 164.03 171.33 200.00 300.00
8. MAXIMUM PERMISSIBLE BANK FINANCE 115.66 70.62 21.70 200.00 300.00
( Item # 6 or Item # 7 whichever is lower )
9 NWC TO TCA ( % ) 0.54 -23.05 -44.39 19.05 21.33
10 Bank Finance to TCA ( % ) 39.30 23.30 6.76 44.62 47.48
11 Sundry Creditors to TCA ( % ) 19.70 30.27 30.70 5.31 5.67
12 Other Current Liabilities to TCA ( % ) 23.39 29.85 54.31 26.12 20.11
13 Inventories to Net Sales ( days ) 51.27 37.62 24.40 52.20 50.99
14 Receivables to Gross Sales ( days ) 97.37 117.06 86.84 77.90 77.91
15 Sundry Creditors to Purchases ( days ) 69.88 98.38 67.31 15.19 15.23

FORM # VI
FUND FLOW STATEMENT
1 SOURCES (Rs. in Lakhs)
S.No Particulars 2006-07 2007-08 2008-09 2009-10 2010-11
Audited Audited Audited Current Next
Actuals Actuals Actuals Year Year
Estimates Projections
a) Net Profit after Tax 15.88 25.19 29.57 52.40
b) Depreciation 18.31 19.56 20.00 30.00
c) Increase in Capital 0.00 0.00 0.00 0.00
Increase in Deffered tax liability 0.00 0.00 0.00 0.00
d) B/F reserves 0.00 0.00 0.00 0.00
e) Increase in Term Liabilities -10.89 126.50 -7.17 70.00
e) Decrease in
i) Fixed Assets ( Depreciation to date ) 0.00 0.00 0.00 0.00
ii) Other Non-Current Assets 0.00 0.00 0.00 0.00

g) Total 23.30 171.25 42.40 152.40

2 USES (Rs. in Lakhs)

Particulars 2006-07 2007-08 2008-09 2009-10 2010-11
Audited Audited Audited Current Next
Actuals Actuals Actuals Year Year
Estimates Projections
a) Net Loss 0.00 0.00 0.00 0.00
b) Decrease in Term Liabilities 0.00 0.00 0.00 0.00
Decrease in unsecured loans 0.00 0.00 0.00 0.00
c) Increase in
i) Fixed Assets 17.23 27.35 0.00 140.00
ii) Non current assets 77.53 216.43 -185.39 -37.00
d) Dividend Payments 0.00 0.00 0.00 0.00
e) Decrease in liability for capital goods 0.00 0.00 0.00 0.00
g) TOTAL 94.76 243.78 -185.39 103.00

a) Long Term Surplus ( + ) / Deficit ( - )

b) ( Item # 1 Minus Item # 2 ) -71.46 -72.53 227.79 49.40
c) Increase / Decrease in Current Assets
d) * ( as per details given below ) 8.78 17.69 127.48 183.66
e) Increase or Decrease in Current Liabilities
f) other than Bank Borrowings 68.83 82.92 -128.98 34.26
g) Increase / Decrease in Working Capital Gap -60.05 -65.23 256.46 149.41
h) Net Surplus ( + ) / Deficit ( - ) -11.41 -7.30 -28.67 -100.00
I) Increase / Decrease in Bank Borrowings 11.41 7.30 28.67 100.00
INCREASE / DECREASE IN NET SALES 131.97 226.30 112.44 540.42
0.00 0.00 0.00 0.00 0.00