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This spreadsheet supports INSTRUCTOR analysis of the case,

"Kota Fibres, Ltd." (UVA -F-1359 v. 1.1).


Please note:
1) This is a working model. Assumptions / Inputs presented can
be changed to vary the results.
2) This model intentionally incorporates a circular reference. To
resolve this circularity, please instruct Excel to iterate 20-30
times in recalculating the model. Click on
Tools/Options/Calculation, and the Iteration button.
3) As long as the default spreadsheet calculation is set as
"automatic", the impact of changing assumptions will be
computed in real time. Alternatively, the F9 function key may
need to be invoked to recalculate results. To set numerical
calculation settings to automatic, look under tools, options,
calculations menu.

Copyright 2001 by the Trustees of the University of Virginia Darden School Foundation.

School Foundation.

BASE CASE

PONDICHERRY

30 DAY INVENTORY

Comparative Overview of Financial Results Associated with V


Base Case
Pondicherry
Debt Balance Summary Debt Balance Summary
Jan 01
1,146,269 Jan 01
1,344,093
June 01
32,950,665 June 01
35,809,122
Dec 01
3,463,702 Dec 01
3,897,616
Gross Sales
Excise Taxes
Net Sales
Cost of Goods Sold
Gross Profit
Operating Expenses
Depreciation
Interest Expense (Income)
Profit Before Taxes
Income Taxes
Net Profit
Net Profit vs. Base Case

90,900,108
13,635,016
77,265,092
66,993,380
10,271,712
5,454,006
1,073,731
1,835,620
1,908,354
572,506
1,335,848

96,900,108
14,535,016
82,365,092
71,415,380
10,949,712
5,814,006
1,073,731
2,024,489
2,037,485
611,246
1,426,240
90,392

Debt Balance Summary


Jan 01
June 01
Dec 01

30 DAY INVENTORY

HIBACHI JIT

sults Associated with Various Proposals


Inventory
Hibachi JIT
Debt Balance Summary Debt Balance Summary
1,200,185 Jan 01
1,353,298
25,435,575 June 01
24,728,089
2,957,147 Dec 01
1,844,640
90,900,108
13,635,016
77,265,092
66,993,380
10,271,712
5,454,006
1,073,731
1,442,475
2,301,500
690,450
1,611,050
275,202

90,900,108
13,635,016
77,265,092
66,993,380
10,271,712
5,454,006
1,073,731
11,145
2,407,054
722,116
1,684,938
258,698

PONDICHERRY SALES OPTION


Summary of Sales and Credit Results
Sales
6,000,000
January
Normal Cycle
2.88%
Pondicherry Sales
172,681
Credit Outstanding
172,681
Avg Credit
Additional Profit
Return

February
3.18%
190,945
363,626

March
4.89%
293,558
600,199

1,296,566
90,392
6.97%

Below are the basic forecast exhibits of the model, adjusted to reflect the Pondicherry proposal.
Exhibit
Location
Exhibit 8 Forecast of Income Statements
A25
Exh. 8 contd Forecast of Balance Sheets
A44
Exhibit 9 Schedule of Cash Receipts and Disbursements
A65
Exhibit 10 Forecasted T-ACCOUNTS
A96

EXHIBIT 8
KOTA FIBRES, LTD.
Monthly Forecast of Income Statements
(In Rupees)
January
Gross Sales
Excise Taxes
Net Sales
Cost of Goods Sold
Gross Profit
Operating Expenses
Depreciation
Interest Expense (Income) (1)
Profit Before Taxes
Income Taxes
Net Profit
(1) Interest expense = Notes Payable * 145%/12 months.

2,788,801
418,320
2,370,481
2,055,346
315,135
484,501
84,130
12,254
(265,750)
(79,725)
(186,025)

February

March

3,083,770
462,566
2,621,205
2,272,739
348,466
484,501
84,130
28,901
(249,066)
(74,720)
(174,346)

4,740,962
711,144
4,029,817
3,494,089
535,729
484,501
87,047
79,018
(114,837)
(34,451)
(80,386)

EXHIBIT 8 -contdKOTA FIBRES, LTD.


Forecasted Monthly Balance Sheets for 1990
(In Rupees)
January
February

March

Assets
Cash (1)
Accounts Receivable (2)
Inventories (3)
Total Current Assets
Net Prop. Plant & Equip. (4)
Total Assets

750,000
750,000
750,000
2,946,030 3,655,168 5,554,207
2,378,033 6,153,817 12,555,950
6,074,063 10,558,985 18,860,157
8,527,238 8,443,107 8,706,060
14,601,300 19,002,093 27,566,217

Liabilities and Owners' Equity


Accounts Payable (5)
Note Payable- Bank (6)
Accrued Taxes (7)
Total Current Liabilities
Shareholders' Equity (8)
Total Liabilities & Equity

1,670,990 4,225,425 7,204,615


1,344,093 3,439,517 9,639,288
(79,725)
(154,445)
(188,896)
2,935,358 7,510,497 16,655,007
11,665,942 11,491,596 10,911,210
14,601,300 19,002,093 27,566,217

EXHIBIT 9
KOTA FIBRES, LTD.
Schedule of Cash Receipts and Disbursements
(In Rupees)
January
February
Assume: Sales
Purchases (1)
Debt Outstanding

March

2,788,801
2,607,529
1,344,093

3,083,770
5,161,963
3,439,517

4,740,962
8,141,154
9,639,288

Receipts: Accts Rcvble Collected


New Borrowings (Repayments)

2,515,500
659,990

2,374,632
2,095,424

2,841,923
5,699,771

Disburs.: Accounts Paid (2)


Capital Expenditures
Interest Payments
Excise Tax Paid
Operating Expenses
Accrued Income Tax Paid
Wages
Dividends
Subtotal: Disbursements

1,696,074
0
12,254
418,320
484,501
0
576,665
0
3,187,813

2,607,529
0
28,901
462,566
484,501
0
886,560
0
4,470,056

5,161,963
350,000
79,018
711,144
484,501
0
1,755,068
500,000
8,541,693

########
684,102

Receipts - Disbursements

(12,323)

BOP Cash Balance


EOP Cash Balance

762,323
750,000

762,323

750,000
750,000

750,000
750,000

(1) Equal to 55 percent of sales in period (T+2).


(2) Equal to purchases in period (T-1).

Exhibit 10
KOTA FIBRES, LTD.
Forecasted T-Accounts Supporting Financial Statements
(In Rupees)
January
February
1. Schedule of Accounts Receivable
Beginning of Period
2,672,729 2,946,030
Plus Sales
2,788,801 3,083,770
Less Collections, Last Month (1)
885,456 1,046,448
Less Collections, Month before Last (2)
1,630,044 1,328,184
Less Collections Pondicherry
End of Period
2,946,030 3,655,168

March
3,655,168
4,740,962
1,157,130
1,569,672
115,121
5,554,207

(1) 40% of sales in period (T-1).


(2) 60% of sales in period (T-2).

2. Schedule of Inventories
Beginning of Period
Plus Purchases (1)
Plus Labor
Less Shipments (COGS)
End of Period

########

3. Schedule of Accounts Payable


Beginning of Period
+ Purchases (1)
- Payments (2)
End of Period

1,249,185
2,607,529
576,665
2,055,346
2,378,033

2,378,033 6,153,817
5,161,963 8,141,154
886,560 1,755,068
2,272,739 3,494,089
6,153,817 12,555,950

759,535
2,607,529
1,696,074
1,670,990

1,670,990
5,161,963
2,607,529
4,225,425

4,225,425
8,141,154
5,161,963
7,204,615

(1) Equal to 55 percent of sales in period (T+1).


(2) Equal to purchases in period (T-1).

4. Schedule of Shareholder's Equity


Beginning of Period
Plus Net Profit

11,851,967 11,665,942 11,491,596


(186,025)
(174,346)
(80,386)

Less Dividends
End of Period
5. Schedule of Accrued Taxes
Beginning of Period
Plus Monthly Tax Expense (@ 30%)
Less Quarterly Tax Payments
End of Period

0
0
500,000
11,665,942 11,491,596 10,911,210

0
(79,725)
0
(79,725)

(79,725)
(74,720)
0
(154,445)

(154,445)
(34,451)
0
(188,896)

6. Schedule of Property, Plant and Equipment


Beginning Gross PP&E
10,095,646 10,095,646 10,095,646
Plus Capital Expenditures
0
0
350,000
Ending Gross PP&E
10,095,646 10,095,646 10,445,646
Monthly Depreciation Expense
84,130
84,130
87,047
Less Cumulative Depr'n.
1,568,408 1,652,539 1,739,586
Ending Net PP&E
8,527,238 8,443,107 8,706,060

From Balance Sheet


From CR&D
DIFFERENCE

1,344,093
1,344,093
0

3,439,517
3,439,517
0

9,639,288
9,639,288
0

April
9.69%
581,138
1,002,629

May
15.28%
916,538
1,694,359

June
19.35%
1,160,948
2,466,847

July
17.95%
1,076,932
2,851,959

August
9.43%
565,862
2,420,629

September
5.53%
332,079
1,619,485

ondicherry proposal.

Pro Forma
April

May

June

July

August

9,385,388
1,407,808
7,977,580
6,917,031
1,060,549
484,501
87,047
172,508
316,493
94,948
221,545

14,802,098
2,220,315
12,581,783
10,909,146
1,672,637
484,501
87,047
291,161
809,928
242,978
566,950

18,749,324
2,812,399
15,936,925
13,818,251
2,118,674
484,501
89,964
393,238
1,150,972
345,292
805,680

17,392,465
2,608,870
14,783,595
12,818,246
1,965,348
484,501
89,964
396,769
994,115
298,234
695,880

9,138,686
1,370,803
7,767,883
6,735,212
1,032,672
484,501
89,964
287,965
170,242
51,073
119,169

September
5,363,079
804,462
4,558,617
3,952,589
606,028
484,501
92,880
165,444
(136,797)
(41,039)
(95,758)

April

May

June

July

August

September

750,000
11,240,081
18,719,039
30,709,120
8,619,013
39,328,133

750,000
19,592,683
20,881,872
41,224,555
8,531,966
49,756,521

750,000
27,019,955
15,342,289
43,112,244
8,792,002
51,904,246

750,000
28,240,995
7,182,670
36,173,665
8,702,039
44,875,704

750,000
19,220,965
4,057,883
24,028,848
8,612,075
32,640,923

750,000
10,260,658
3,062,538
14,073,196
8,869,195
22,942,391

9,375,589
18,913,736
(93,948)
28,195,378
11,132,756
39,328,133

8,629,317
29,278,468
149,031
38,056,816
11,699,705
49,756,521

4,089,739
35,809,122
0
39,898,860
12,005,386
51,904,246

2,013,155
29,863,049
298,234
32,174,438
12,701,266
44,875,704

1,670,990
17,800,191
349,307
19,820,488
12,820,435
32,640,923

1,134,146
9,583,567
0
10,717,713
12,224,678
22,942,391

April

May

June

July

August

September

9,385,388
10,312,128
18,913,736

14,802,098
9,565,856
29,278,468

18,749,324
5,026,277
35,809,122

17,392,465
2,949,693
29,863,049

9,138,686
2,607,529
17,800,191

3,699,514
9,274,449

6,449,496
10,364,732

11,322,052
6,530,653

16,171,424 18,158,716
(5,946,073) (12,062,858)

8,141,154
0
172,508
1,407,808
484,501
0
2,767,992
0
12,973,962

10,312,128
0
291,161
2,220,315
484,501
0
3,506,124
0
16,814,228

9,565,856
350,000
393,238
2,812,399
484,501
494,322
3,252,391
500,000
17,852,705

5,026,277
0
396,769
2,608,870
484,501
0
1,708,934
0
10,225,351

2,949,693
0
287,965
1,370,803
484,501
0
1,002,896
0
6,095,858

5,363,079
2,070,685
9,583,567
14,323,386
(8,216,624)
2,607,529
350,000
165,444
804,462
484,501
308,268
886,560
500,000
6,106,763

750,000
750,000

750,000
750,000

750,000
750,000

750,000
750,000

750,000
750,000

750,000
750,000

April

May

June

July

August

September

5,554,207
9,385,388
1,778,962
1,735,695
184,857
11,240,081

11,240,081
14,802,098
3,521,700
2,668,442
259,354
19,592,683

19,592,683
18,749,324
5,554,224
5,282,550
485,278
27,019,955

27,019,955
17,392,465
7,035,350
8,331,336
804,738
28,240,995

28,240,995
9,138,686
6,526,213
10,553,026
1,079,478
19,220,965

19,220,965
5,363,079
3,429,130
9,789,320
1,104,937
10,260,658

12,555,950
10,312,128
2,767,992
6,917,031
18,719,039

18,719,039
9,565,856
3,506,124
10,909,146
20,881,872

20,881,872
5,026,277
3,252,391
13,818,251
15,342,289

15,342,289
2,949,693
1,708,934
12,818,246
7,182,670

7,182,670
2,607,529
1,002,896
6,735,212
4,057,883

4,057,883
2,070,685
886,560
3,952,589
3,062,538

7,204,615
10,312,128
8,141,154
9,375,589

9,375,589
9,565,856
10,312,128
8,629,317

8,629,317
5,026,277
9,565,856
4,089,739

4,089,739
2,949,693
5,026,277
2,013,155

2,013,155
2,607,529
2,949,693
1,670,990

1,670,990
2,070,685
2,607,529
1,134,146

10,911,210
221,545

11,132,756
566,950

11,699,705
805,680

12,005,386
695,880

12,701,266
119,169

12,820,435
(95,758)

0
11,132,756

(188,896)
94,948
0
(93,948)

0
11,699,705

(93,948)
242,978
0
149,031

500,000
12,005,386

0
12,701,266

0
12,820,435

149,031
345,292
494,322
0

0
298,234
0
298,234

298,234
51,073
0
349,307

500,000
12,224,678

349,307
(41,039)
308,268
0

10,445,646
0
10,445,646
87,047
1,826,633
8,619,013

10,445,646
0
10,445,646
87,047
1,913,680
8,531,966

10,445,646
350,000
10,795,646
89,964
2,003,644
8,792,002

10,795,646
0
10,795,646
89,964
2,093,607
8,702,039

10,795,646
0
10,795,646
89,964
2,183,571
8,612,075

10,795,646
350,000
11,145,646
92,880
2,276,451
8,869,195

18,913,736
18,913,736
0

29,278,468
29,278,468
0

35,809,122
35,809,122
0

29,863,049
29,863,049
0

17,800,191
17,800,191
0

9,583,567
9,583,567
0

October November December


4.89%
3.89%
3.04%
293,558 233,119 182,643
1,004,764 749,170 612,446

October
4,740,962
711,144
4,029,817
3,494,089
535,729
484,501
92,880
92,666
(134,318)
(40,296)
(94,023)

November December The Year


########
564,732
########
########
425,432
484,501
92,880
57,892
(209,841)
(62,952)
(146,889)

########
442,454
########
########
333,315
484,501
95,797
46,674
(293,656)
(88,097)
(205,559)

96,900,108
14,535,016
82,365,092
71,415,380
10,949,712
5,814,006
1,073,731
2,024,489
2,037,485
611,246
1,426,240

October

November December

750,000
7,109,306
1,894,814
9,754,120
8,776,314
#########

750,000
########
########
########
########
########

750,000
########
########
########
########
########

685,793
5,754,282
(40,296)
6,399,780
#########
#########

########
########
(103,248)
########
########
########

########
########
(191,345)
########
########
########

October

November December

4,740,962 ######## ########


1,622,331 ######## ########
5,754,282 ######## ########
7,892,313 ######## ########
######### ########
69,854
2,070,685 ######## ########
0
0 350,000
92,666
57,892
46,674
711,144 564,732 442,454
484,501 484,501 484,501
0
0
0
704,033 551,593 668,270
0
0 500,000
4,063,029 ######## ########

January

February

3,573,637 ########

750,000
750,000

750,000
750,000

750,000
750,000

October

November December

#########
4,740,962
2,012,400
5,143,694
736,219
7,109,306

########
########
########
########
410,007
########

########
########
########
########
306,398
########

3,062,538
1,622,331
704,033
3,494,089
1,894,814

########
########
551,593
########
########

########
########
668,270
########
########

1,134,146 685,793 ########


1,622,331 ######## ########
2,070,685 ######## ########
685,793 ######## ########

######### ######## ########


(94,023) (146,889) (205,559)

0
0 500,000
######### ######## ########

0
(40,296) (103,248)
(40,296) (62,952) (88,097)
0
0
0
(40,296) (103,248) (191,345)

#########
0
#########
92,880
2,369,332
8,776,314

########
0
########
92,880
########
########

########
350,000
########
95,797
########
########

5,754,282 ######## ########


5,754,282 ######## ########
0
0
0

########
########
########
########
########
########

Sales
A/R
Inv
A/P
n/p

January
########
########
########
########
########

February
########
########
########
########
########

March
########
########
########
########
########

April
########
########
########
########
########

INVENTORY REDUCTION TO 30 DAYS

Gross Sales
Inventories (3)
Note Payable- Bank (6)

Summary of Sales, Inventory and Credit Results


January
February
2,616,120
2,892,825
1,453,117
2,598,841
1,200,185
2,156,979

Below are the basic forecast exhibits, adjusted to reflect the inventory policy proposal.
Exhibit
Location
Exhibit 8 Forecast of Income Statements
A20
Exh. 8 contd Forecast of Balance Sheets
A40
Exhibit 9 Schedule of Cash Receipts and Disbursements
A61
Exhibit 10 Forecasted T-ACCOUNTS
A92

EXHIBIT 8
KOTA FIBRES, LTD.
Monthly Forecast of Income Statements
(In Rupees)
January
Gross Sales
Excise Taxes
Net Sales
Cost of Goods Sold
Gross Profit
Operating Expenses
Depreciation
Interest Expense (Income) (1)
Profit Before Taxes
Income Taxes
Net Profit

2,616,120
392,418
2,223,702
1,928,080
295,622
454,501
84,130
11,384
(254,394)
(76,318)
(178,076)

(1) Interest expense = Notes Payable * 14.5%/12 months.

EXHIBIT 8 -contdKOTA FIBRES, LTD.


Forecasted Monthly Balance Sheets for 2001
(In Rupees)

February
2,892,825
433,924
2,458,901
2,132,012
326,889
454,501
84,130
20,283
(232,025)
(69,607)
(162,417)

January

February

Assets
Cash (1)
Accounts Receivable (2)
Inventories (3)
Total Current Assets
Net Prop. Plant & Equip.(4)
Total Assets

750,000
2,773,349
1,453,117
4,976,466
8,733,016
13,709,481

750,000
3,291,542
2,598,841
6,640,383
8,648,885
15,289,269

Liabilities and Owners' Equity


Accounts Payable (5)
Note Payable- Bank (6)
Accrued Taxes (7)
Total Current Liabilities
Shareholders' Equity (8)
Total Liabilities & Equity

911,723
1,766,741
1,200,185
2,156,979
(76,318)
(145,925)
2,035,590
3,777,794
11,673,891 11,511,474
13,709,481 15,289,269

EXHIBIT 9
KOTA FIBRES, LTD.
Schedule of Cash Receipts and Disbursements
(In Rupees)
January
Assume:

Sales
Purchases (1)
Debt Outstanding

1,438,866
684,102

February

2,616,120
1,591,054
1,200,185

2,892,825
2,446,072
2,156,979

Receipts:

Accts Rcvble Collected


New Borrowings (Repayments)

2,515,500
310,304

2,374,632
956,793

Disburs.:

Accounts Paid (2)


Capital Expenditures
Interest Payments
Excise Tax Paid
Operating Expenses
Accrued Income Tax Paid
Wages
Dividends
Subtotal: Disbursements

1,438,866
0
11,384
392,418
454,501
0
540,958
0
2,838,127

1,591,054
0
20,283
433,924
454,501
0
831,665
0
3,331,425

Receipts - Disbursements

(12,323)

BOP Cash Balance


EOP Cash Balance

762,323

762,323
750,000

750,000
750,000

(1) Equal to 55 percent of sales in period (T+1).


(2) Equal to purchases in period (T-1).

Exhibit 10
KOTA FIBRES, LTD.
Forecasted T-Accounts Supporting Financial Statements
(In Rupees)
January
February
1. Schedule of Accounts Receivable
Beginning of Period
2,672,729
2,773,349
Plus Sales
2,616,120
2,892,825
Less Collections, Last Month (1)
885,456
1,046,448
Less Collections, Month before Last (2)
1,630,044
1,328,184
End of Period
2,773,349
3,291,542
(1) 40% of sales in period (T-1).
(2) 60% of sales in period (T-2).

2. Schedule of Inventories
Beginning of Period
Plus Purchases (1)
Plus Labor
Less Shipments (COGS)
End of Period

3. Schedule of Accounts Payable


Beginning of Period
+ Purchases (1)
- Payments (2)
End of Period

1,438,866

1,249,185
1,591,054
540,958
1,928,080
1,453,117

1,453,117
2,446,072
831,665
2,132,012
2,598,841

759,535
1,591,054
1,438,866
911,723

911,723
2,446,072
1,591,054
1,766,741

(1) Equal to 55 percent of sales in period (T+1).


(2) Equal to purchases in period (T-1).

4. Schedule of Shareholder's Equity


Beginning of Period
Plus Net Profit
Less Dividends
End of Period
5. Schedule of Accrued Taxes
Beginning of Period

11,851,967 11,673,891
(178,076)
(162,417)
0
0
11,673,891 11,511,474

(76,318)

Plus Monthly Tax Expense (@ 30%)


Less Quarterly Tax Payments
End of Period

(76,318)
0
(76,318)

6. Schedule of Property, Plant and Equipment


Beginning Gross PP&E
Plus Capital Expenditures
Ending Gross PP&E
10,095,646
Monthly Depreciation Expense
Less Cumulative Depr'n.
1,278,500
Ending Net PP&E
8,817,146

From Balance Sheet


From CR&D
DIFFERENCE

(69,607)
0
(145,925)

10,095,646
0
10,095,646
84,130
1,362,630
8,733,016

10,095,646
0
10,095,646
84,130
1,446,761
8,648,885

1,200,185
1,200,185
0

2,156,979
2,156,979
0

February
2,892,825
(162,417)

March
4,447,404
(59,849)

Exhibit TN3

Gross sales
Net profit

January
2,616,120
(178,076)

Assets
Cash (1)
Accounts Receivable (2)
Inventories (3)
Total Current Assets
Net Prop. Plant & Equip.(4)
Total Assets

750,000
2,773,349
1,453,117
4,976,466
8,733,016
13,709,481

Liabilities and Owners' Equity


Accounts Payable (5)
Note Payable- Bank (6)
Accrued Taxes (7)
Total Current Liabilities
Shareholders' Equity (8)
Total Liabilities & Equity

911,723
1,766,741
4,163,007
1,200,185
2,156,979
5,540,762
(76,318)
(145,925)
(171,575)
2,035,590
3,777,794
9,532,193
11,673,891 11,511,474 10,951,626
13,709,481 15,289,269 20,483,819

Schedule of Inventories

750,000
3,291,542
2,598,841
6,640,383
8,648,885
15,289,269

750,000
5,012,144
5,809,837
11,571,981
8,911,838
20,483,819

Beginning of Period
Plus Purchases (1)
Plus Labor
Less Shipments (COGS)
End of Period

1,249,185
1,591,054
540,958
1,928,080
1,453,117

1,453,117
2,446,072
831,665
2,132,012
2,598,841

2,598,841
4,842,338
1,646,395
3,277,737
5,809,837

March
4,447,404
5,809,837
5,540,762

April
8,804,250
9,554,762
11,342,182

May
13,885,560
12,283,738
18,797,552

June
17,588,376
11,345,652
25,435,575

July
16,315,533
5,639,276
23,845,118

August
8,572,824
3,028,952
14,393,177

policy proposal.

Pro Forma
March
4,447,404
667,111
3,780,293
3,277,737
502,557
454,501
87,047
46,507
(85,498)
(25,649)
(59,849)

April

May

June

July

August

8,804,250
1,320,638
7,483,613
6,488,732
994,880
454,501
87,047
102,001
351,332
105,399
245,932

13,885,560
2,082,834
11,802,726
10,233,658
1,569,068
454,501
87,047
182,094
845,426
253,628
591,799

17,588,376
2,638,256
14,950,120
12,962,633
1,987,486
454,501
89,964
267,242
1,175,780
352,734
823,046

16,315,533
2,447,330
13,868,203
12,024,548
1,843,655
454,501
89,964
297,738
1,001,453
300,436
701,017

8,572,824
1,285,924
7,286,900
6,318,171
968,729
454,501
89,964
231,023
193,242
57,973
135,269

March

April

May

June

July

August

750,000
5,012,144
5,809,837
11,571,981
8,911,838
20,483,819

750,000
10,301,737
9,554,762
20,606,500
8,824,791
29,431,291

750,000
17,997,155
12,283,738
31,030,893
8,737,744
39,768,637

750,000
24,748,757
11,345,652
36,844,409
8,997,780
45,842,190

750,000
25,697,604
5,639,276
32,086,879
8,907,817
40,994,696

750,000
17,191,189
3,028,952
20,970,140
8,817,853
29,787,993

4,163,007
5,540,762
(171,575)
9,532,193
10,951,626
20,483,819

6,957,727
11,342,182
(66,175)
18,233,733
11,197,558
29,431,291

8,994,276
18,797,552
187,453
27,979,281
11,789,356
39,768,637

8,294,212
25,435,575
0
33,729,787
12,112,403
45,842,190

4,035,722
23,845,118
300,436
28,181,276
12,813,420
40,994,696

2,087,719
14,393,177
358,409
16,839,304
12,948,689
29,787,993

March

April

May

June

July

August

4,447,404
4,842,338
5,540,762

8,804,250
7,637,058
11,342,182

13,885,560
9,673,607
18,797,552

17,588,376
8,973,543
25,435,575

16,315,533
4,715,053
23,845,118

8,572,824
2,767,050
14,393,177

2,726,802
3,383,783

3,514,657
5,801,420

6,190,142
7,455,371

10,836,774
6,638,023

15,366,686 17,079,239
(1,590,457) (9,451,941)

2,446,072
350,000
46,507
667,111
454,501
0
1,646,395
500,000
6,110,585

4,842,338
0
102,001
1,320,638
454,501
0
2,596,600
0
9,316,076

7,637,058
0
182,094
2,082,834
454,501
0
3,289,026
0
13,645,513

9,673,607
350,000
267,242
2,638,256
454,501
540,187
3,051,005
500,000
17,474,797

8,973,543
0
297,738
2,447,330
454,501
0
1,603,118
0
13,776,229

4,715,053
0
231,023
1,285,924
454,501
0
940,797
0
7,627,297

750,000
750,000

750,000
750,000

750,000
750,000

750,000
750,000

750,000
750,000

March

April

May

June

July

August

3,291,542
4,447,404
1,157,130
1,569,672
5,012,144

5,012,144
8,804,250
1,778,962
1,735,695
10,301,737

10,301,737
13,885,560
3,521,700
2,668,442
17,997,155

17,997,155
17,588,376
5,554,224
5,282,550
24,748,757

24,748,757
16,315,533
7,035,350
8,331,336
25,697,604

25,697,604
8,572,824
6,526,213
10,553,026
17,191,189

2,598,841
4,842,338
1,646,395
3,277,737
5,809,837

5,809,837
7,637,058
2,596,600
6,488,732
9,554,762

9,554,762
9,673,607
3,289,026
10,233,658
12,283,738

12,283,738
8,973,543
3,051,005
12,962,633
11,345,652

11,345,652
4,715,053
1,603,118
12,024,548
5,639,276

5,639,276
2,767,050
940,797
6,318,171
3,028,952

1,766,741
4,842,338
2,446,072
4,163,007

4,163,007
7,637,058
4,842,338
6,957,727

6,957,727
9,673,607
7,637,058
8,994,276

8,994,276
8,973,543
9,673,607
8,294,212

8,294,212
4,715,053
8,973,543
4,035,722

4,035,722
2,767,050
4,715,053
2,087,719

11,511,474 10,951,626
(59,849)
245,932
500,000
0
10,951,626 11,197,558

11,197,558
591,799
0
11,789,356

11,789,356
823,046
500,000
12,112,403

12,112,403
701,017
0
12,813,420

12,813,420
135,269
0
12,948,689

187,453

300,436

(145,925)

(171,575)

(66,175)

750,000
750,000

(25,649)
0
(171,575)

105,399
0
(66,175)

253,628
0
187,453

352,734
540,187
0

300,436
0
300,436

57,973
0
358,409

10,095,646
350,000
10,445,646
87,047
1,533,808
8,911,838

10,445,646
0
10,445,646
87,047
1,620,855
8,824,791

10,445,646
0
10,445,646
87,047
1,707,902
8,737,744

10,445,646
350,000
10,795,646
89,964
1,797,866
8,997,780

10,795,646
0
10,795,646
89,964
1,887,829
8,907,817

10,795,646
0
10,795,646
89,964
1,977,793
8,817,853

5,540,762
5,540,762
0

11,342,182
11,342,182
0

18,797,552
18,797,552
0

25,435,575
25,435,575
0

23,845,118
23,845,118
0

14,393,177
14,393,177
0

April
8,804,250
245,932

May
13,885,560
591,799

June
17,588,376
823,046

July
16,315,533
701,017

August
8,572,824
135,269

September
5,031,000
(76,912)

750,000
10,301,737
9,554,762
20,606,500
8,824,791
29,431,291

750,000
17,997,155
12,283,738
31,030,893
8,737,744
39,768,637

750,000
24,748,757
11,345,652
36,844,409
8,997,780
45,842,190

750,000
25,697,604
5,639,276
32,086,879
8,907,817
40,994,696

750,000
17,191,189
3,028,952
20,970,140
8,817,853
29,787,993

750,000
9,003,739
2,598,841
12,352,581
9,074,973
21,427,553

6,957,727
11,342,182
(66,175)
18,233,733
11,197,558
29,431,291

8,994,276
18,797,552
187,453
27,979,281
11,789,356
39,768,637

8,294,212
25,435,575
0
33,729,787
12,112,403
45,842,190

4,035,722
23,845,118
300,436
28,181,276
12,813,420
40,994,696

2,087,719
14,393,177
358,409
16,839,304
12,948,689
29,787,993

1,766,741
7,289,035
0
9,055,776
12,371,777
21,427,553

5,809,837
7,637,058
2,596,600
6,488,732
9,554,762

9,554,762
9,673,607
3,289,026
10,233,658
12,283,738

12,283,738
8,973,543
3,051,005
12,962,633
11,345,652

11,345,652
4,715,053
1,603,118
12,024,548
5,639,276

5,639,276
2,767,050
940,797
6,318,171
3,028,952

3,028,952
2,446,072
831,665
3,707,847
2,598,841

September
5,031,000
2,598,841
7,289,035

October
4,447,404
1,924,013
4,431,877

November
3,531,762
1,360,420
3,124,139

December The Year


2,767,050 90,900,108
1,827,609
2,957,147

September

October

November

December The Year

5,031,000
754,650
4,276,350
3,707,847
568,503
454,501
92,880
130,997
(109,875)
(32,962)
(76,912)

4,447,404
667,111
3,780,293
3,277,737
502,557
454,501
92,880
70,814
(115,638)
(34,691)
(80,947)

3,531,762
529,764
3,001,998
2,602,909
399,089
454,501
92,880
45,651
(193,943)
(58,183)
(135,760)

2,767,050
415,058
2,351,993
2,039,316
312,677
454,501
95,797
36,741
(274,362)
(82,309)
(192,053)

90,900,108
13,635,016
77,265,092
66,993,380
10,271,712
5,454,006
1,073,731
1,442,475
2,301,500
690,450
1,611,050

========== ==========

September

October

November

December

750,000
9,003,739
2,598,841
12,352,581
9,074,973
21,427,553

750,000
6,295,049
1,924,013
8,969,062
8,982,092
17,951,154

750,000
5,029,249
1,360,420
7,139,670
8,889,212
16,028,882

750,000
3,715,152
1,827,609
6,292,761
9,143,415
15,436,176

1,766,741
7,289,035
0
9,055,776
12,371,777
21,427,553

1,263,138
842,547
1,191,195
4,431,877
3,124,139
2,957,147
(34,691)
(92,874)
(175,183)
5,660,324
3,873,811
3,973,159
12,290,830 12,155,070 11,463,017
17,951,154 16,028,882 15,436,176

September

October

November

December

January

February

5,031,000
2,446,072
7,289,035

4,447,404
1,942,469
4,431,877

3,531,762
1,521,878
3,124,139

2,767,050
1,870,526
2,957,147

3,400,956

3,616,031

13,218,449
7,156,094
4,797,562
(7,104,141) (2,857,158) (1,307,738)

4,081,147
(166,992)

2,767,050
350,000
130,997
754,650
454,501
325,446
831,665
500,000
6,114,308

2,446,072
0
70,814
667,111
454,501
0
660,439
0
4,298,937

1,942,469
0
45,651
529,764
454,501
0
517,438
0
3,489,823

1,521,878
350,000
36,741
415,058
454,501
0
635,979
500,000
3,914,155

750,000
750,000

750,000
750,000

750,000
750,000

750,000
750,000

September

October

November

December

17,191,189
5,031,000
3,429,130
9,789,320
9,003,739

9,003,739
4,447,404
2,012,400
5,143,694
6,295,049

6,295,049
3,531,762
1,778,962
3,018,600
5,029,249

5,029,249
2,767,050
1,412,705
2,668,442
3,715,152

3,028,952
2,446,072
831,665
3,707,847
2,598,841

2,598,841
1,942,469
660,439
3,277,737
1,924,013

1,924,013
1,521,878
517,438
2,602,909
1,360,420

1,360,420
1,870,526
635,979
2,039,316
1,827,609

2,087,719
2,446,072
2,767,050
1,766,741

1,766,741
1,942,469
2,446,072
1,263,138

1,263,138
1,521,878
1,942,469
842,547

842,547
1,870,526
1,521,878
1,191,195

12,948,689 12,371,777 12,290,830 12,155,070


(76,912)
(80,947)
(135,760)
(192,053)
500,000
0
0
500,000
12,371,777 12,290,830 12,155,070 11,463,017

358,409

(34,691)

(92,874)

(32,962)
325,446
0

(34,691)
0
(34,691)

(58,183)
0
(92,874)

(82,309)
0
(175,183)

10,795,646
350,000
11,145,646
92,880
2,070,673
9,074,973

11,145,646
0
11,145,646
92,880
2,163,554
8,982,092

11,145,646
0
11,145,646
92,880
2,256,434
8,889,212

11,145,646
350,000
11,495,646
95,797
2,352,231
9,143,415

7,289,035
7,289,035
0

4,431,877
4,431,877
0

3,124,139
3,124,139
0

2,957,147
2,957,147
0

October
November December
4,447,404
3,531,762
2,767,050
(80,947)
(135,760)
(192,053)

750,000
6,295,049
1,924,013
8,969,062
8,982,092
17,951,154

750,000
5,029,249
1,360,420
7,139,670
8,889,212
16,028,882

750,000
3,715,152
1,827,609
6,292,761
9,143,415
15,436,176

1,263,138
842,547
1,191,195
4,431,877
3,124,139
2,957,147
(34,691)
(92,874)
(175,183)
5,660,324
3,873,811
3,973,159
12,290,830 12,155,070 11,463,017
17,951,154 16,028,882 15,436,176

##########
1,400,000
##########
1,073,731
23,456,837
##########

2,598,841
1,942,469
660,439
3,277,737
1,924,013

1,924,013
1,521,878
517,438
2,602,909
1,360,420

1,360,420
1,870,526
635,979
2,039,316
1,827,609

Hibachi's Just in Time proposal


Summary of Sales, Inventory and Debt Results
January
2,616,120
1,452,010
1,353,298

Gross Sales
Inventories (3)
Note Payable- Bank (6)

Below are the base case forecast exhibits adjusted to reflect the Hibachi proposal.
Exhibit
Location
Exhibit 8 Forecast of Income Statements
A549..Q567
Exh. 8 contd Forecast of Balance Sheets
A569..Q588
Exhibit 9 Schedule of Cash Receipts and Disbursements
A590..Q619
Exhibit 10 Forecasted T-ACCOUNTS
A621..Q669
Graph
V562..AD580

EXHIBIT 8
KOTA FIBRES, LTD.
Monthly Forecast of Income Statements
(In Rupees)
January
Gross Sales
Excise Taxes
Net Sales
Cost of Goods Sold
Gross Profit
Operating Expenses
Depreciation
Interest Expense (Income) (1)
Profit Before Taxes
Income Taxes
Net Profit

2,616,120
392,418
2,223,702
1,928,080
295,622
454,501
84,130
12,309
(255,319)
(76,596)
(178,723)

(1) Interest expense = Notes Payable * 14.5%/12 months.

EXHIBIT 8 -contdKOTA FIBRES, LTD.


Forecasted Monthly Balance Sheets for 1990
(In Rupees)

January
Assets
Cash (1)
Accounts Receivable (2)
Inventories (3)
Total Current Assets
Net Prop. Plant & Equip. (4)
Total Assets

750,000
2,773,349
1,452,010
4,975,359
8,733,016
13,708,374

Liabilities and Owners' Equity


Accounts Payable (5)
Note Payable- Bank (6)
Accrued Taxes (7)
Total Current Liabilities
Shareholders' Equity (8)
Total Liabilities & Equity

758,428
1,353,298
(76,596)
2,035,130
11,673,244
13,708,374

EXHIBIT 9
KOTA FIBRES, LTD.
Schedule of Cash Receipts and Disbursements
(In Rupees)
January
Assume:

Sales
Purchases
Debt Outstanding

1,591,054
684,102

2,616,120
1,589,947
1,353,298

Receipts:

Accts Rcvble Collected


New Borrowings (Repayments)

2,515,500
463,417

Disburs.:

Accounts Paid
Capital Expenditures
Interest Payments
Excise Tax Paid
Operating Expenses
Accrued Income Tax Paid
Wages
Dividends
Subtotal: Disbursements

1,591,054
0
12,309
392,418
454,501
0
540,958
0
2,991,240

Receipts - Disbursements

(12,323)

BOP Cash Balance


EOP Cash Balance

762,323

762,323
750,000

Exhibit 10
KOTA FIBRES, LTD.
Forecasted T-Accounts Supporting Financial Statements
(In Rupees)
January
1. Schedule of Accounts Receivable
Beginning of Period
2,672,729
Plus Sales
2,616,120
Less Collections, Last Month (1)
885,456
Less Collections, Month before Last (2)
1,630,044
End of Period
2,773,349
(1) 40% of sales in period (T-1).
(2) 60% of sales in period (T-2).

2. Schedule of Inventories
Beginning of Period
Plus Purchases (1)
Plus Labor
Less Shipments (COGS)
End of Period

3. Schedule of Accounts Payable


Beginning of Period
+ Purchases (1)
- Payments (2)
End of Period

P
P
Purchasesm = (Salesm+2 x ( ) x .65) + (Salesm+2 x ( ) x .3
S
S

1,591,054

1,249,185
1,589,947
540,958
1,928,080
1,452,010

759,535
1,589,947
1,591,054
758,428

(1) Equal to 55 percent of sales in period (T+1).


(2) Equal to purchases in period (T-1).

4. Schedule of Shareholder's Equity


Beginning of Period
Plus Net Profit
Less Dividends
End of Period
5. Schedule of Accrued Taxes
Beginning of Period

11,851,967
(178,723)
0
11,673,244

Plus Monthly Tax Expense (@ 30%)


Less Quarterly Tax Payments
End of Period
6. Schedule of Property, Plant and Equipment
Beginning Gross PP&E
Plus Capital Expenditures
Ending Gross PP&E
Monthly Depreciation Expense
Less Cumulative Depr'n.
Ending Net PP&E

(76,596)
0
(76,596)

10,095,646
1,278,500
8,817,146

From Balance Sheet


From CR&D
DIFFERENCE

10,095,646
0
10,095,646
84,130
1,362,630
8,733,016

1,353,298
1,353,298
0

Exhibit TN2
Gross sales
Net profit

January
2,616,120
(178,723)

February
2,892,825
(162,477)

March
4,447,404
(60,165)

Assets
Cash (1)
Accounts Receivable (2)
Inventories (3)
Total Current Assets
Net Prop. Plant & Equip. (4)
Total Assets

750,000
2,773,349
1,452,010
4,975,359
8,733,016
13,708,374

750,000
3,291,542
3,177,581
7,219,123
8,648,885
15,868,008

750,000
5,012,144
6,938,680
12,700,824
8,911,838
21,612,662

Liabilities and Owners' Equity


Accounts Payable (5)
Note Payable- Bank (6)
Accrued Taxes (7)
Total Current Liabilities
Shareholders' Equity (8)
Total Liabilities & Equity

758,428
1,353,298
(76,596)
2,035,130
11,673,244
13,708,374

2,485,482
2,017,987
(146,229)
4,357,241
11,510,767
15,868,008

5,079,536
5,754,537
(172,014)
10,662,060
10,950,602
21,612,662

Schedule of Inventories
Beginning of Period
Plus Purchases (1)
Plus Labor
Less Shipments (COGS)
End of Period

1,249,185
1,589,947
540,958
1,928,080
1,452,010

1,452,010
3,317,001
540,582
2,132,012
3,177,581

3,177,581
5,911,055
1,127,780
3,277,737
6,938,680

ebt Results
February
2,892,825
3,177,581
2,017,987

March
4,447,404
6,938,680
5,754,537

April
8,804,250
10,526,916
12,043,361

May
13,885,560
11,565,271
19,390,528

June
17,588,376
7,866,326
24,728,089

chi proposal.

90

Pro Forma
February
2,892,825
433,924
2,458,901
2,132,012
326,889
454,501
84,130
20,368
(232,110)
(69,633)
(162,477)

March
4,447,404
667,111
3,780,293
3,277,737
502,557
454,501
87,047
46,959
(85,950)
(25,785)
(60,165)

April
8,804,250
1,320,638
7,483,613
6,488,732
994,880
454,501
87,047
107,529
345,804
103,741
242,063

May
13,885,560
2,082,834
11,802,726
10,233,658
1,569,068
454,501
87,047
189,913
837,608
251,282
586,325

June
17,588,376
2,638,256
14,950,120
12,962,633
1,987,486
454,501
89,964
266,550
1,176,472
352,942
823,531

February

March

April

May

June

750,000
3,291,542
3,177,581
7,219,123
8,648,885
15,868,008

750,000
5,012,144
6,938,680
12,700,824
8,911,838
21,612,662

750,000
10,301,737
10,526,916
21,578,653
8,824,791
30,403,445

750,000
17,997,155
11,565,271
30,312,426
8,737,744
39,050,171

750,000
24,748,757
7,866,326
33,365,083
8,997,780
42,362,863

2,485,482
2,017,987
(146,229)
4,357,241
11,510,767
15,868,008

5,079,536
5,754,537
(172,014)
10,662,060
10,950,602
21,612,662

7,235,691
12,043,361
(68,272)
19,210,780
11,192,665
30,403,445

7,697,643
19,390,528
183,010
27,271,181
11,778,990
39,050,171

5,532,254
24,728,089
0
30,260,342
12,102,521
42,362,863

nts
February

March

April

May

June

2,892,825
3,317,001
2,017,987

4,447,404
5,911,055
5,754,537

8,804,250
8,067,210
12,043,361

13,885,560
8,529,162
19,390,528

17,588,376
6,363,772
24,728,089

2,374,632
664,689

2,726,802
3,736,550

3,514,657
6,288,824

6,190,142
7,347,166

10,836,774
5,337,561

1,589,947
0
20,368
433,924
454,501
0
540,582
0
3,039,321

3,317,001
350,000
46,959
667,111
454,501
0
1,127,780
500,000
6,463,352

5,911,055
0
107,529
1,320,638
454,501
0
2,009,759
0
9,803,481

8,067,210
0
189,913
2,082,834
454,501
0
2,742,851
0
13,537,309

8,529,162
350,000
266,550
2,638,256
454,501
535,952
2,899,915
500,000
16,174,335

750,000
750,000

750,000
750,000

750,000
750,000

750,000
750,000

750,000
750,000

tements
February
2,773,349
2,892,825
1,046,448
1,328,184
3,291,542

March
3,291,542
4,447,404
1,157,130
1,569,672
5,012,144

April
5,012,144
8,804,250
1,778,962
1,735,695
10,301,737

May
10,301,737
13,885,560
3,521,700
2,668,442
17,997,155

June
17,997,155
17,588,376
5,554,224
5,282,550
24,748,757

P
P
P
lesm+2 x ( ) x .65) + (Salesm+2 x ( ) x .35 x .05) + (Salesm x ( ) x .35 x .95)
S
S
S

1,452,010
3,317,001
540,582
2,132,012
3,177,581

3,177,581
5,911,055
1,127,780
3,277,737
6,938,680

6,938,680
8,067,210
2,009,759
6,488,732
10,526,916

10,526,916
8,529,162
2,742,851
10,233,658
11,565,271

11,565,271
6,363,772
2,899,915
12,962,633
7,866,326

758,428
3,317,001
1,589,947
2,485,482

2,485,482
5,911,055
3,317,001
5,079,536

5,079,536
8,067,210
5,911,055
7,235,691

7,235,691
8,529,162
8,067,210
7,697,643

7,697,643
6,363,772
8,529,162
5,532,254

11,673,244
(162,477)
0
11,510,767

11,510,767
(60,165)
500,000
10,950,602

10,950,602
242,063
0
11,192,665

11,192,665
586,325
0
11,778,990

11,778,990
823,531
500,000
12,102,521

(76,596)

(146,229)

(172,014)

(68,272)

183,010

(69,633)
0
(146,229)

(25,785)
0
(172,014)

103,741
0
(68,272)

251,282
0
183,010

352,942
535,952
0

10,095,646
0
10,095,646
84,130
1,446,761
8,648,885

10,095,646
350,000
10,445,646
87,047
1,533,808
8,911,838

10,445,646
0
10,445,646
87,047
1,620,855
8,824,791

10,445,646
0
10,445,646
87,047
1,707,902
8,737,744

10,445,646
350,000
10,795,646
89,964
1,797,866
8,997,780

2,017,987
2,017,987
0

5,754,537
5,754,537
0

12,043,361
12,043,361
0

19,390,528
19,390,528
0

24,728,089
24,728,089
0

April
8,804,250
242,063

May
13,885,560
586,325

June
17,588,376
823,531

July
16,315,533
715,757

August
8,572,824
155,430

750,000
10,301,737
10,526,916
21,578,653
8,824,791
30,403,445

750,000
17,997,155
11,565,271
30,312,426
8,737,744
39,050,171

750,000
24,748,757
7,866,326
33,365,083
8,997,780
42,362,863

750,000
25,697,604
2,836,169
29,283,773
8,907,817
38,191,590

750,000
17,191,189
1,360,948
19,302,136
8,817,853
28,119,989

7,235,691
12,043,361
(68,272)
19,210,780
11,192,665
30,403,445

7,697,643
19,390,528
183,010
27,271,181
11,778,990
39,050,171

5,532,254
24,728,089
0
30,260,342
12,102,521
42,362,863

3,999,190
21,067,369
306,753
25,373,312
12,818,278
38,191,590

2,368,990
12,403,927
373,366
15,146,282
12,973,707
28,119,989

6,938,680
8,067,210
2,009,759
6,488,732
10,526,916

10,526,916
8,529,162
2,742,851
10,233,658
11,565,271

11,565,271
6,363,772
2,899,915
12,962,633
7,866,326

7,866,326
4,830,709
2,163,683
12,024,548
2,836,169

2,836,169
3,200,508
1,642,441
6,318,171
1,360,948

July
16,315,533
2,836,169
21,067,369

July
16,315,533
2,447,330
13,868,203
12,024,548
1,843,655
454,501
89,964
276,681
1,022,510
306,753
715,757

August
8,572,824
1,360,948
12,403,927

August
8,572,824
1,285,924
7,286,900
6,318,171
968,729
454,501
89,964
202,222
222,042
66,613
155,430

September
5,031,000
957,916
5,990,806

October
4,447,404
263,009
2,980,827

November
3,531,762
176,466
1,646,578

September

October

November

5,031,000
754,650
4,276,350
3,707,847
568,503
454,501
92,880
111,135
(90,013)
(27,004)
(63,009)

4,447,404
667,111
3,780,293
3,277,737
502,557
454,501
92,880
54,204
(99,028)
(29,708)
(69,320)

3,531,762
529,764
3,001,998
2,602,909
399,089
454,501
92,880
27,957
(176,249)
(52,875)
(123,374)

July

August

September

October

November

750,000
25,697,604
2,836,169
29,283,773
8,907,817
38,191,590

750,000
17,191,189
1,360,948
19,302,136
8,817,853
28,119,989

750,000
9,003,739
957,916
10,711,655
9,074,973
19,786,628

750,000
6,295,049
263,009
7,308,058
8,982,092
16,290,151

750,000
5,029,249
176,466
5,955,716
8,889,212
14,844,928

3,999,190
21,067,369
306,753
25,373,312
12,818,278
38,191,590

2,368,990
12,403,927
373,366
15,146,282
12,973,707
28,119,989

1,385,123
5,990,806
0
7,375,929
12,410,698
19,786,628

997,653
2,980,827
(29,708)
3,948,772
12,341,379
16,290,151

1,062,928
1,646,578
(82,583)
2,626,923
12,218,005
14,844,928

July

August

September

October

November

16,315,533
4,830,709
21,067,369

8,572,824
3,200,508
12,403,927

5,031,000
2,216,642
5,990,806

4,447,404
1,829,172
2,980,827

3,531,762
1,894,447
1,646,578

15,366,686
(3,660,720)

17,079,239
(8,663,442)

13,218,449
(6,413,121)

7,156,094
(3,009,979)

4,797,562
(1,334,249)

6,363,772
0
276,681
2,447,330
454,501
0
2,163,683
0
11,705,966

4,830,709
0
202,222
1,285,924
454,501
0
1,642,441
0
8,415,797

3,200,508
350,000
111,135
754,650
454,501
346,362
1,088,173
500,000
6,805,329

2,216,642
0
54,204
667,111
454,501
0
753,658
0
4,146,115

1,829,172
0
27,957
529,764
454,501
0
621,919
0
3,463,313

750,000
750,000

July

750,000
750,000

August

750,000
750,000

September

750,000
750,000

October

750,000
750,000

November

24,748,757
16,315,533
7,035,350
8,331,336
25,697,604

25,697,604
8,572,824
6,526,213
10,553,026
17,191,189

17,191,189
5,031,000
3,429,130
9,789,320
9,003,739

9,003,739
4,447,404
2,012,400
5,143,694
6,295,049

6,295,049
3,531,762
1,778,962
3,018,600
5,029,249

7,866,326
4,830,709
2,163,683
12,024,548
2,836,169

2,836,169
3,200,508
1,642,441
6,318,171
1,360,948

1,360,948
2,216,642
1,088,173
3,707,847
957,916

957,916
1,829,172
753,658
3,277,737
263,009

263,009
1,894,447
621,919
2,602,909
176,466

5,532,254
4,830,709
6,363,772
3,999,190

3,999,190
3,200,508
4,830,709
2,368,990

2,368,990
2,216,642
3,200,508
1,385,123

1,385,123
1,829,172
2,216,642
997,653

997,653
1,894,447
1,829,172
1,062,928

12,102,521
715,757
0
12,818,278

12,818,278
155,430
0
12,973,707

12,973,707
(63,009)
500,000
12,410,698

12,410,698
(69,320)
0
12,341,379

12,341,379
(123,374)
0
12,218,005

306,753

373,366

(29,708)

306,753
0
306,753

66,613
0
373,366

(27,004)
346,362
0

(29,708)
0
(29,708)

(52,875)
0
(82,583)

10,795,646
0
10,795,646
89,964
1,887,829
8,907,817

10,795,646
0
10,795,646
89,964
1,977,793
8,817,853

10,795,646
350,000
11,145,646
92,880
2,070,673
9,074,973

11,145,646
0
11,145,646
92,880
2,163,554
8,982,092

11,145,646
0
11,145,646
92,880
2,256,434
8,889,212

21,067,369
21,067,369
0

12,403,927
12,403,927
0

5,990,806
5,990,806
0

2,980,827
2,980,827
0

1,646,578
1,646,578
0

September
5,031,000
(63,009)

October
4,447,404
(69,320)

November
3,531,762
(123,374)

December
2,767,050
(181,100)

750,000
9,003,739
957,916
10,711,655
9,074,973
19,786,628

750,000
6,295,049
263,009
7,308,058
8,982,092
16,290,151

750,000
5,029,249
176,466
5,955,716
8,889,212
14,844,928

750,000
3,715,152
614,822
5,079,974
9,143,415
14,223,389

1,385,123
5,990,806
0
7,375,929
12,410,698
19,786,628

997,653
2,980,827
(29,708)
3,948,772
12,341,379
16,290,151

1,062,928
1,646,578
(82,583)
2,626,923
12,218,005
14,844,928

1,002,041
1,844,640
(160,197)
2,686,484
11,536,905
14,223,389

1,360,948
2,216,642
1,088,173
3,707,847
957,916

957,916
1,829,172
753,658
3,277,737
263,009

263,009
1,894,447
621,919
2,602,909
176,466

176,466
1,833,560
644,112
2,039,316
614,822

December The Year


2,767,050
90,900,108
614,822
1,844,640

December
2,767,050
415,058
2,351,993
2,039,316
312,677
454,501
95,797
21,093
(258,714)
(77,614)
(181,100)

The Year
90,900,108
13,635,016
77,265,092
66,993,380
10,271,712
5,454,006
1,073,731
11,145
2,407,054
722,116
1,684,938

=========== ===========

December
750,000
3,715,152
614,822
5,079,974
9,143,415
14,223,389

1,002,041
1,844,640
(160,197)
2,686,484
11,536,905
14,223,389

December

January

2,767,050
1,833,560
1,844,640
4,081,147
198,063
1,894,447
350,000
21,093
415,058
454,501
0
644,112
500,000
4,279,210
0

3,400,956

February
3,616,031

750,000
750,000

December
5,029,249
2,767,050
1,412,705
2,668,442
3,715,152

176,466
1,833,560
644,112
2,039,316
614,822

1,062,928
1,833,560
1,894,447
1,002,041

12,218,005
(181,100)
500,000
11,536,905

(82,583)

(77,614)
0
(160,197)

11,145,646
350,000
11,495,646
95,797
2,352,231
9,143,415

1,844,640
1,844,640
0

127,447,752
1,400,000
128,847,752
1,073,731
23,456,837
106,669,415

LEVEL PRODUCTION PLAN


January
Sales as percentage of year
Production as percentage of year
Total sales through July
Total production through July

2.88%
8.33%
73.21%
58.33%

February
3.18%
8.33%

March
4.89%
8.33%

April
9.69%
8.33%

May

June

July

15.28%
8.33%

19.35%
8.33%

17.95%
8.33%

August
9.43%
8.33%

September October November December


5.53%
8.33%

4.89%
8.33%

3.89%
8.33%

3.04%
8.33%

A
183
184
185
186
187
188
189
190
191
192
193
194
195
196
197
198
199

Gross Sales
Excise Tax
Net Sales
Cost of Goods
Gross Profits
Operating Expenses
Depreciation
Interest Expense
Profit Before Tax
Income Tax
Net Profit

Exhibit 2
SENGUPTA FIBRES, LTD.
Historical Annual Income Statements
(In Rupees)
1999
(Actual)
64,487,358
9,673,104
54,814,254
44,496,277
10,317,977
3,497,305
769,103
910,048
5,141,521
1,542,456
3,599,065

2000
(Actual)
75,867,480
11,380,122
64,487,358
53,865,911
10,621,447
4,828,721
908,608
1,240,066
3,644,052
1,093,216
2,550,836

2001
(Forecast)
90,900,108
13,635,016
77,265,092
66,993,380
10,271,712
5,454,006
1,073,731
1,835,620
1,908,354
572,506
1,335,848

Exhibit TN 5
Sensitivity Analysis of Peak and Ending Debt to Variations in Sales and COGS

Sales as % of base case

100
95
90
85
80
75
Operating expenses as
a % of sales

6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
Wages as a percentage
of purchases

34.0%
33.0%
32.0%
31.0%
30.0%
29.0%
28.0%
27.0%
26.0%

Peak Debt

32,950,665
31,216,310
29,481,954
27,747,599
26,013,244
24,278,889

Peak Debt

32,950,665
32,621,294
32,291,923
31,963,281
31,635,709
31,308,137

Peak Debt

32,950,665
32,675,829
32,400,993
32,126,157
31,851,322
31,576,486
31,301,650
31,026,814
30,751,978

End Debt

3,463,701
3,280,920
3,098,139
2,915,358
2,732,577
2,549,796

End Debt

3,463,701
2,714,270
1,964,839
1,260,586
588,325
(83,937)

End Debt

3,463,701
3,063,969
2,664,236
2,264,503
1,864,771
1,465,038
1,065,305
665,573
265,840