KOTA FIBRES, LTD.

Historical and Forecast Annual Income Statements & Balance Sheets (in rupees)
1999 (Actual) 2000 (Actual) 2001 (Forecast)

Gross Sales 64,487,358 75,867,480 90,900,108

Excise Taxes 9,673,104 11,380,122 13,635,016
Net Sales 54,814,254 64,487,358 77,265,092
Cost of Goods Sold 44,496,277 53,865,911 64,266,376
Gross Profit 10,317,977 10,621,447 12,998,715
Operating Expenses 3,497,305 4,828,721 5,454,006
Depreciation 769,103 908,608 1,073,731
Interest Expense (Income) 910,048 1,240,066 1,835,619
Profit Before Taxes 5,141,521 3,644,052 4,635,359
Income Taxes 1,542,456 1,093,216 1,390,608
Net Profit 3,599,065 2,550,836 3,244,751

Cash 762,323 5,559,577

Accounts Receivable 2,672,729 2,716,197
Inventories 1,249,185 1,434,059
Total Current Assets 4,684,237 9,709,832
Gross PP&E 10,095,646 11,495,646
Accumulated Depreciation 1,484,278 2,558,009
Net PP&E 8,611,368 8,937,637
Total Assets 13,295,605 18,647,469

Accounts Payable 759,535 970,988

Note Payable—Bank 684,102 3,463,701
Accrued Taxes - (83,938)
Total Current Liabilites 1,443,637 4,350,751
Shareholders' Equity 11,851,967 14,296,718
Total Liabilites & Equity 13,295,604 18,647,469

EXHIBIT 1 | Summary of Monthly Sales, Actual for 2000 and Forecast for 2001 (in rupees)
January February March April May

2000 (Historical) 2,012,400 2,314,260 3,421,080 7,043,400 12,074,400

2001 (Forecast) 2,616,120 2,892,825 4,447,404 8,804,250 13,885,560
 Common Size Ratio Analysis

100.00% 100.00% 100.00% Current ratio 3.24 2.23

15.00% 15.00% 15.00% Acid-test ratio 2.38 1.90
85.00% 85.00% 85.00%
69.00% 71.00% 70.70% Debt Ratios 0.11 0.23
16.00% 14.00% 14.30% Debt to equity ratio 0.12 0.30
5.42% 6.36% 6.00%
1.19% 1.20% 1.18% Asset turnover ratio 4.85 4.14
1.41% 1.63% 2.02% Receivable turnover 28.39 33.47
7.97% 4.80% 5.10% Inventory turnover ratio 43.12 44.81
2.39% 1.44% 1.53% Average collection period 13 11
5.58% 3.36% 3.57% Average sale period 8 8

5.73% 29.81% Gross Profit Margin 14.00% 14.30%

20.10% 14.57% Net Profit Margin 3.36% 3.57%
9.40% 7.69% Return on assets 19.19% 17.40%
35.23% 52.07% Return on equity 21.52% 22.70%
75.93% 61.65%
11.16% 13.72%
64.77% 47.93%
100.00% 100.00%

5.71% 5.21%
5.15% 18.57%
0.00% -0.45%
10.86% 23.33%
89.14% 76.67%
100.00% 100.00%

June July August September October November Desember Year

15,294,240 14,187,420 7,144,020 4,024,800 3,421,080 2,716,740 2,213,640 75,867,480

17,588,376 16,315,533 8,572,824 5,031,000 4,447,404 3,531,762 2,767,050 90,900,108
 KOTA FIBRES, LTD.
Monthly Forecast of Income Statement and Balance Cheets fo

Forecast Assumptions
Ratio of:
Cost of Goods Sold 70.7% Cash Sales
Income Tax/Profit Before Tax 30%
Excise Tax/Sales 15% Annual Operating Expenses/Annual S
This Month Collections of Last Month's Sales 60% Capital Expenditures (every third mo
This Month Collections of Month-before-Last Sales 40% Interest Rate on Borrowings (and dep
Purchases/Sales next month 52.5% Minimum Cash Balance
Wages/Purchases in Previous Month 34% Depreciation/Gross PP&E (per year)
Just in time / Purchases 35% (per month)
65% Dividends Paid (every third month)

January February March April May

Gross Sales 2,616,120 2,892,825 4,447,404 8,804,250 13,885,560

Excise Taxes 392,418 433,924 667,111 1,320,638 2,082,834
Net Sales 2,223,702 2,458,901 3,780,293 7,483,613 11,802,726
Cost of Goods Sold 1,849,597 2,045,227 3,144,315 6,224,605 9,817,091
Gross Profit 374,105 413,674 635,979 1,259,008 1,985,635
Operating Expenses 454,501 454,501 454,501 454,501 454,501
Depreciation 84,130 84,130 87,047 87,047 87,047
Interest Expense (Income) 11,058 24,825 70,867 158,210 268,352
Profit Before Taxes (175,584) (149,782) 23,564 559,250 1,175,735
Income Taxes (52,675) (44,935) 7,069 167,775 352,721
Net Profit (122,909) (104,847) 16,495 391,475 823,015

Assets
Cash 1,172,604 2,760,365 6,808,742 12,155,261 17,585,582
Accounts Receivable 2,350,745 2,523,811 3,856,020 7,838,962 13,298,201
Inventories 1,459,279 2,265,308 4,537,087 7,173,959 9,069,338
Total Current Assets 4,982,629 7,549,485 15,201,849 27,168,182 39,953,121
Net Prop. Plant & Equip. 8,527,238 8,443,107 8,706,060 8,619,013 8,531,966
Total Assets 13,509,866 15,992,592 23,907,909 35,787,196 48,485,088
Liabilities and Owners' Equity
Accounts Payable 687,214 1,503,368 3,790,712 6,458,400 8,402,378
Note Payable—Bank 1,146,269 2,962,623 8,767,031 17,419,380 26,997,558
Accrued Taxes (52,675) (97,610) (90,540) 77,235 429,955
Total Current Liabilites 1,780,808 4,368,381 12,467,203 23,955,015 35,829,892
Shareholders' Equity 11,729,058 11,624,211 11,440,706 11,832,181 12,655,196
Total Liabilites & Equity 13,509,866 15,992,592 23,907,909 35,787,196 48,485,088
OTA FIBRES, LTD.
atement and Balance Cheets for 2001 (in rupees)

20%
80%
nnual Operating Expenses/Annual Sales 6.00%
apital Expenditures (every third month) 350,000
terest Rate on Borrowings (and deposits) 14.5%
inimum Cash Balance 750,000
epreciation/Gross PP&E (per year) 10%
0.83%
vidends Paid (every third month) 200,000

June July August September October November Desember

17,588,376 16,315,533 8,572,824 5,031,000 4,447,404 3,531,762 2,767,050

2,638,256 2,447,330 1,285,924 754,650 667,111 529,764 415,058
14,950,120 13,868,203 7,286,900 4,276,350 3,780,293 3,001,998 2,351,993
12,434,982 11,535,082 6,060,987 3,556,917 3,144,315 2,496,956 1,956,304
2,515,138 2,333,121 1,225,914 719,433 635,979 505,042 395,688
454,501 454,501 454,501 454,501 454,501 454,501 454,501
89,964 89,964 89,964 92,880 92,880 92,880 95,797
362,187 363,212 259,568 145,898 80,686 50,025 40,731
1,608,487 1,425,445 421,882 26,154 7,912 (92,364) (195,340)
482,546 427,633 126,564 7,846 2,374 (27,709) (58,602)
1,125,941 997,811 295,317 18,308 5,538 (64,655) (136,738)

19,247,926 14,870,340 10,642,267 7,535,098 5,900,827 5,109,013 5,559,577

17,886,473 18,053,100 11,451,623 6,140,497 4,540,236 3,620,972 2,716,197
8,339,537 4,217,510 2,328,047 2,004,051 1,507,773 1,093,938 1,434,059
45,473,936 37,140,949 24,421,937 15,679,645 11,948,837 9,823,923 9,709,832
8,792,002 8,702,039 8,612,075 8,869,195 8,776,314 8,683,434 8,937,637
54,265,938 45,842,988 33,034,012 24,548,840 20,725,151 18,507,357 18,647,469

7,734,136 3,669,214 1,809,756 1,503,368 1,022,656 621,182 970,988

32,950,666 27,167,193 15,795,793 8,352,899 5,002,010 3,278,054 3,463,701
- 427,633 554,198 - 2,374 (25,336) (83,938)
40,684,802 31,264,040 18,159,747 9,856,267 6,027,040 3,873,901 4,350,751
13,581,136 14,578,948 14,874,265 14,692,573 14,698,111 14,633,456 14,296,718
54,265,938 45,842,988 33,034,012 24,548,840 20,725,151 18,507,357 18,647,469
EXHIBIT 9 | Schedule of Cash Receipts and Disburesements of 2001 (in rupees)
January February March April May

Assume:
Sales 2,616,120 2,892,825 4,447,404 8,804,250 13,885,560
Purchases 1,518,733 2,334,887 4,622,231 7,289,919 9,233,897
Debt Outstanding 1,146,268 2,962,622 8,767,030 17,419,379 26,997,556

Receipts:
Cash Sales 523,224 578,565 889,481 1,760,850 2,777,112
Accts. Rcvble. Collected 2,414,880 2,141,194 2,225,714 3,060,458 5,649,209
New Borrowings (Repayments) 462,166 1,816,354 5,804,408 8,652,349 9,578,178

Disbursements:
Accounts Paid 1,591,054 1,518,733 2,334,887 4,622,231 7,289,919
Capital Expenditures - - 350,000 - -
Interest Payments 11,058 24,825 70,867 158,210 268,352
Excise Tax Paid 392,418 433,924 667,111 1,320,638 2,082,834
Operating Expenses 454,501 454,501 454,501 454,501 454,501
Accrued Income Tax Paid - - - - -
Wages 540,958 516,369 793,862 1,571,559 2,478,572
Dividends - - 200,000 - -
Subtotal: Disbursements 2,989,989 2,948,352 4,871,227 8,127,138 12,574,178

Receipts – Disbursements 410,281 1,587,761 4,048,376 5,346,519 5,430,321

BOP Cash Balance 762,323 1,172,604 2,760,365 6,808,742 12,155,261

EOP Cash Balance 1,172,604 2,760,365 6,808,742 12,155,261 17,585,582
June July August September October November Desember

17,588,376 16,315,533 8,572,824 5,031,000 4,447,404 3,531,762 2,767,050

8,565,655 4,500,733 2,641,275 2,334,887 1,854,175 1,452,701 1,802,507
32,950,665 27,167,192 15,795,793 8,352,899 5,002,010 3,278,054 3,463,701

3,517,675 3,263,107 1,714,565 1,006,200 889,481 706,352 553,410

9,482,429 12,885,800 13,459,736 9,335,926 5,158,184 3,744,674 3,118,415
5,953,108 (5,783,473) (11,371,400) (7,442,894) (3,350,889) (1,723,956) 185,647

9,233,897 8,565,655 4,500,733 2,641,275 2,334,887 1,854,175 1,452,701

350,000 - - 350,000 - - 350,000
362,187 363,212 259,568 145,898 80,686 50,025 40,731
2,638,256 2,447,330 1,285,924 754,650 667,111 529,764 415,058
454,501 454,501 454,501 454,501 454,501 454,501 454,501
912,501 - - 562,044 - - -
3,139,525 2,912,323 1,530,249 898,034 793,862 630,420 493,918
200,000 - - 200,000 - - 200,000
17,290,868 14,743,020 8,030,974 6,006,401 4,331,046 3,518,884 3,406,909

1,662,344 (4,377,587) (4,228,073) (3,107,169) (1,634,270) (791,814) 450,563

17,585,582 19,247,926 14,870,340 10,642,267 7,535,098 5,900,827 5,109,013

19,247,926 14,870,340 10,642,267 7,535,098 5,900,827 5,109,013 5,559,577
EXHIBIT 10 | Forecast T-Accounts Supporting Financial Statements (in rupees)
January February March April

1. Schedule of Accounts Receivable

Beginning of Period 2,672,729 2,350,745 2,523,811 3,856,020
Plus Sales 2,092,896 2,314,260 3,557,923 7,043,400
Less Collections
Last Month 1,328,184 1,255,738 1,388,556 2,134,754
Less Collections
Month before Last 1,086,696 885,456 837,158 925,704
End of Period 2,350,745 2,523,811 3,856,020 7,838,962

2. Schedule of Inventories
Beginning of Period 1,249,185 1,459,279 2,265,308 4,537,087
Plus Purchases 1,518,733 2,334,887 4,622,231 7,289,919
Plus Labor 540,958 516,369 793,862 1,571,559
Less Shipments (COGS) 1,849,597 2,045,227 3,144,315 6,224,605
End of Period 1,459,279 2,265,308 4,537,087 7,173,959

3. Schedule of Accounts Payable

Beginning of period 759,535 687,214 1,503,368 3,790,712
+ Purchases 1,518,733 2,334,887 4,622,231 7,289,919
- Payments 1,591,054 1,518,733 2,334,887 4,622,231
End of Period 687,214 1,503,368 3,790,712 6,458,400

4. Schedule of Shareholders' Equity

Beginning of Period 11,851,967 11,729,058 11,624,211 11,440,706
Plus Net Profit (122,909) (104,847) 16,495 391,475
Less Dividends - - 200,000 -
End of Period 11,729,058 11,624,211 11,440,706 11,832,181

5. Schedule of Accrued Taxes

Beginning of Period - (52,675) (97,610) (90,540)
Plus Monthly Tax
Expense (@30%) (52,675) (44,935) 7,069 167,775
Less Quarterly
Tax Payments - - - -
End of Period (52,675) (97,610) (90,540) 77,235

6. Schedule of Property, Plant and Equipment

Beginning Gross PP&E 10,095,646 10,095,646 10,095,646 10,445,646
Plus Capital Expenditures - - 350,000 -
Ending Gross PP&E 10,095,646 10,095,646 10,445,646 10,445,646
Monthly Depreciation
Expense 84,130 84,130 87,047 87,047
Less Cumulative Depr'n 1,568,408 1,652,539 1,739,586 1,826,633
Ending Net PP&E 8,527,238 8,443,107 8,706,060 8,619,013
May June July August September October November Desember

7,838,962 13,298,201 17,886,473 18,053,100 11,451,623 6,140,497 4,540,236 3,620,972

11,108,448 14,070,701 13,052,426 6,858,259 4,024,800 3,557,923 2,825,410 2,213,640

4,226,040 6,665,069 8,442,420 7,831,456 4,114,956 2,414,880 2,134,754 1,695,246

1,423,169 2,817,360 4,443,379 5,628,280 5,220,971 2,743,304 1,609,920 1,423,169

13,298,201 17,886,473 18,053,100 11,451,623 6,140,497 4,540,236 3,620,972 2,716,197

7,173,959 9,069,338 8,339,537 4,217,510 2,328,047 2,004,051 1,507,773 1,093,938

9,233,897 8,565,655 4,500,733 2,641,275 2,334,887 1,854,175 1,452,701 1,802,507
2,478,572 3,139,525 2,912,323 1,530,249 898,034 793,862 630,420 493,918
9,817,091 12,434,982 11,535,082 6,060,987 3,556,917 3,144,315 2,496,956 1,956,304
9,069,338 8,339,537 4,217,510 2,328,047 2,004,051 1,507,773 1,093,938 1,434,059

6,458,400 8,402,378 7,734,136 3,669,214 1,809,756 1,503,368 1,022,656 621,182

9,233,897 8,565,655 4,500,733 2,641,275 2,334,887 1,854,175 1,452,701 1,802,507
7,289,919 9,233,897 8,565,655 4,500,733 2,641,275 2,334,887 1,854,175 1,452,701
8,402,378 7,734,136 3,669,214 1,809,756 1,503,368 1,022,656 621,182 970,988

11,832,181 12,655,196 13,581,136 14,578,948 14,874,265 14,692,573 14,698,111 14,633,456

823,015 1,125,941 997,811 295,317 18,308 5,538 (64,655) (136,738)
- 200,000 - - 200,000 - - 200,000
12,655,196 13,581,136 14,578,948 14,874,265 14,692,573 14,698,111 14,633,456 14,296,718

77,235 429,955 - 427,633 554,198 - 2,374 (25,336)

352,721 482,546 427,633 126,564 7,846 2,374 (27,709) (58,602)

- 912,501 - - 562,044 - - -
429,955 - 427,633 554,198 - 2,374 (25,336) (83,938)

10,445,646 10,445,646 10,795,646 10,795,646 10,795,646 11,145,646 11,145,646 11,145,646

- 350,000 - - 350,000 - - 350,000
10,445,646 10,795,646 10,795,646 10,795,646 11,145,646 11,145,646 11,145,646 11,495,646

87,047 89,964 89,964 89,964 92,880 92,880 92,880 95,797

1,913,680 2,003,644 2,093,607 2,183,571 2,276,451 2,369,332 2,462,212 2,558,009
8,531,966 8,792,002 8,702,039 8,612,075 8,869,195 8,776,314 8,683,434 8,937,637
 35,000,000

30,000,000

25,000,000

20,000,000

15,000,000

10,000,000

5,000,000

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Sa l es A/R n/p Inv A/P

January February March April May June July August

Sales 2,616,120 2,892,825 4,447,404 8,804,250 13,885,560 17,588,376 16,315,533 8,572,824
A/R 2,350,745 2,523,811 3,856,020 7,838,962 13,298,201 17,886,473 18,053,100 11,451,623
n/p 1,146,269 2,962,623 8,767,031 17,419,380 26,997,558 32,950,666 27,167,193 15,795,793
Inv 1,459,279 2,265,308 4,537,087 7,173,959 9,069,338 8,339,537 4,217,510 2,328,047
A/P 687,214 1,503,368 3,790,712 6,458,400 8,402,378 7,734,136 3,669,214 1,809,756
September October November Desember
5,031,000 4,447,404 3,531,762 2,767,050
6,140,497 4,540,236 3,620,972 2,716,197
8,352,899 5,002,010 3,278,054 3,463,701
2,004,051 1,507,773 1,093,938 1,434,059
1,503,368 1,022,656 621,182 970,988