ASSESSMENT OF WORKING CAPITAL REQUIREMENTS

FORM II- OPERATING STATEMENT

Name of the Bank :- CORPORATION BANK
Name of the Borrower :-
(Rs in lakh)
Financial Year 3/31/2008 3/31/2009 3/31/2010 3/31/2011 3/31/2012
Actuals Actuals Actuals Estimates Projections
(1) (2) (3) (4) (5)
1. Gross sales
Sales Turnover 18,350.04 15,774.94 18,937.03 25,000.00 35,000.00

Add Other Operating Income 306.64 294.92 406.85 500.00 500.00

3. Total Income 18,656.68 16,069.86 19,343.88 25,500.00 35,500.00

4. % wise rise or fall(-) in net sales as
compared to previous year -4.49% -14.03% 20.05% 32.00% 40.00%
5. Cost of sales

i) Cost of Purchases 17,740.14 15,153.35 18,155.43 24,500.00 34,000.00

a) Imported 2,418.06 1,803.63 5379.55 7350.00 10200.00

b) Indigenous including high seas

purchases 15,322.08 13,349.72 12,775.88 17150.00 23800.00

ii) Freight 385.41 364.40 522.79 600.00 800.00

iv) Repairs & maintenance 6.89 7.42 - 10.00 -

6. Sub-total(items i to vi) 18,132.44 15,525.17 18,678.22 25,110.00 34,800.00

Add:Opening stock 542.83 447.51 322.05 192.76 540.00

sub-total 18,675.27 15,972.68 19,000.27 25,302.76 35,340.00

Deduct :closing stock 447.51 322.05 192.76 540.00 750.00

7 Cost of sales 18,227.76 15,650.63 18,807.51 24,762.76 34,590.00

Gross Profit 428.92 419.23 536.37 737.24 910.00

Office & Administrative Expenses 105.81 75.09 112.75 180.00 200.00

Depreciation 15.44 13.68 22.24 22.24 22.00

8. Selling,general and administrative
expenses 55.89 38.75 176.96 188.00 210.00
9. Sub-total [7+8] 18,404.90 15,778.15 19,119.46 25,153.00 35,022.00

10. Operating Profit before interest (3-9) 251.78 291.71 224.42 347.00 478.00

11. Interest & Bank Charges 193.17 238.79 155.58 180.00 200.00

12. Profit before tax/loss (10+11) 58.61 52.92 68.84 167.00 278.00

13. Provision for taxes 16.12 18.50 21.59 50.10 83.40

14. Net Profit/loss(12-13) 42.49 34.42 47.25 116.90 194.60

15. (a) Equity Dividend Paid - -
(b) Dividend Rate (%) -
16. Retained profit (14-15) 42.49 34.42 47.25 116.90 194.60
 FORM III: ANALYSIS OF BALANCE SHEET

Name of the Bank :- CORPORATION BANK

Name of the Borrower :-
(Rs in lakh)
3/31/2008 3/31/2009 3/31/2010 3/31/2011 3/31/2012
LIABILITIES Actuals Actuals Actuals Estimates Projections
(1) (2) (3) (4) (5)
CURRENT LIABILITIES
1. Short-term borrowings from banks 164.27 157.54 229.25 600.00 650.00
(incld. bills purchased, discounted &
excess borrowings placed on repayment
basis)
(i) from applicant bank
(ii) Against Deposits - - -
(of which BP & BD)
Sub-total (A) 164.27 157.54 229.25 600.00 650.00
2 (a)Short-term borrowings from others
3. Sundry creditors (Trade) 3,783.72 2,899.07 3,423.52 3,800.00 5,100.00

4. Advances/payments from customers/deposits from .

dealers 54.92 83.73 74.66 -

Misc 8.61 9.75

5. Provision for taxation. 25.68 12.28 8.29

7. Other statutory liabilities 14.08 20.95 37.86

9. Other current liabilities & Provisions 5.87 8.65 5.81

Sub-total(B) 3,892.88 3,034.43 3,550.14 3,800.00 5,100.00

10. Total current liabilities (A+B) 4,057.15 3,191.97 3,779.39 4,400.00 5,750.00
TERM LIABILITIES
11.Deferred Tax Liability - - -
12 HDFC Bank Ltd - Key Man Insurance Policy 23.39 - 30.00 30.00
13.Cholamandalam Invest & Fin Co Ltd 10.36 5.34 -
14 Car Loans 57.45 43.94 38.61 20.00 20.00
15 Others 12.06 7.66 1.66 - -
16. Unsecured Loans(Quasi capital) 419.32 414.12 274.05 535.00 655.00
17. TOTAL TERM LIABILITIES
(Total of 11 to 16) 522.58 471.06 314.32 585.00 705.00

18. TOTAL OUTSIDE LIABILITIES

(item 10 plus item 17) 4,579.73 3,663.03 4,093.71 4,985.00 6,455.00
NET WORTH
19. Ordinary Share Capital 109.00 109.00 117.00 117.00 117.00
20 Share Application Money 14.75 - - - -

21. General reserve 231.20 265.62 352.87 469.77 664.37

22. NET WORTH 354.95 374.62 469.87 586.77 781.37

23 NET WORTH(Excl. Revl. Res.) 354.95 374.62 469.87 586.77 781.37

24. TOTAL LIABILITIES

(item 18 plus item 24) 4,934.68 4,037.65 4,563.58 5,571.77 7,236.37
 Name of the Bank :-
Name of the Borrower :-
(Rs in lakh)
3/31/2008 3/31/2009 3/31/2010 3/31/2011 3/31/2012
ASSETS Actuals Actuals Actuals Estimates Projections
CURRENT ASSETS (1) (2) (3) (4) (5)
25. Cash and bank balances 17.90 24.67 17.91 2.48 4.08

26. Fixed deposits 233.05 292.07 133.83 360.00 360.00

27 Receivables other than Deferred & Exports
(incldg. bills purchased & discounted by banks) 3,835.97 2,892.71 4,043.02 4,450.00 6,000.00
28. Inventory: 692.26 520.02 192.76 640.00 750.00
(a) Stock 447.51 322.05 192.76 540.00 750.00
(b) Goods in Transit 244.75 197.97 - 100.00 -

29.Advances to suppliers & stores/ spares 29.80 69.94 69.71 50.00 75.00
30 DEPB in Hand 1.95
31 Security Deposit 51.52 55.51 3.66
32. Advance payment of taxes 3.01 4.86
33. Amout Recoverable - S Addl Duty etc 11.95 54.10 - - -
Central Sales Tax Deposit Against Appeals 6.05 6.05 -
Other current Assets 1.52 6.78 6.30
34. TOTAL CURRENT ASSETS
(Total of items 26 to 33) 4,880.02 3,926.81 4,472.05 5,502.48 7,189.08
FIXED ASSETS
35. Gross block(land & building, 102.84 104.51 164.07 164.07 164.07
machinery,work-in-progress)
36. Depreciation to date 51.03 61.01 78.33 100.57 122.57

37. NET BLOCK (35-36) 51.81 43.50 85.74 63.50 41.50

NET BLOCK(Net of Revl.Res.) 51.81 43.50 85.74 63.50 41.50
OTHER NON-CURRENT ASSETS
38. Investments/book debts/advances/ -
39. TOTAL OTHER NON-CURR.ASSETS
(Total of items 38 to 40) - - - - -
INTANGIBLE ASSETS
(patents,goodwill, preliminary expenses, bad/doubtful
debts not provided for etc.) 0.17 63.57 - - -
41 Deffered Tax Asset 2.68 3.77 5.79 5.79 5.79
42. TOTAL OF INTANGIBLE ASSETS 2.85 67.34 5.79 5.79 5.79
43. TOTAL ASSETS
(Total of 34,37,41 & 42) 4,934.68 4,037.65 4,563.58 5,571.77 7,236.37

44. TANGIBLE NET WORTH(24-42) 352.10 307.28 464.08 580.98 775.58

45. TNW Excl. Reval. Reserve 352.10 307.28 464.08 580.98 775.58

46. NET WORKING CAPITAL 822.87 734.84 692.66 1,102.48 1,439.08

47. Current Ratio(Item 34/10) 1.20 1.23 1.18 1.25 1.25
48. Total Outside Liabilities/
Tangible Net Worth{18/44(i)} 13.01 11.92 8.82 8.58 8.32
49. Total Outside Liabilities/
Tangible Net Worth (including Quasi Equity) 5.39 4.50 5.17 3.99 4.05
 FORM IV
COMPARATIVE STATEMENT OF
CURRENT ASSETS & CURRENT LIABILITIES

Name of the Borrower :-

(Rs in lakh)

3/31/2008 3/31/2009 3/31/2010 3/31/2011 3/31/2012

Actuals Actuals Actuals Estimates Projections

(1) (2) (3) (4) (5)

A. CURRENT ASSETS
4) Closilng Stock 447.51 322.05 192.76 540.00 750.00
Days' Purchases (9) (8) (4) (8) (8)

5)Receivables other than Export & deferred .

receivables (including bills purchased & '
discounted by banks) 3,835.97 2,892.71 4,043.02 4,450.00 6,000.00

Days' domestic sales: (76) (67) (78) (65) (63)

Months' purchases : - - - - -

8) Other current assets including 351.79 514.08 236.27 512.48 439.08

cash and bank balances & deferred
receivable due within one year
9) TOTAL CURRENT ASSETS
(to agree with item 34 in FORM III) 4,187.76 3,406.79 4,279.29 5,502.48 7,189.08

B. CURRENT LIABILITIES
(Other than bank borrowing for working '
capital)

10) Creditors for purchases of raw material

& stores and consumable spares 3,783.72 2,899.07 3,423.52 3,800.00 5,100.00

Days' purchases : (78) (70) (69) (57) (55)

11) Advances from customers 54.92 83.73 74.66 - -

12) Statutory liabilities - - - - -

13) Other current liabilities 31.55 20.93 14.10 - -

& debentures,ICDs etc.
(Payable in next 12 months)
14. TOTAL CURRENT LIAB.
(To agree with sub-total (B) in Form III) 3,870.19 3,003.73 3,512.28 3,800.00 5,100.00
 FORM V

COMPUTATION OF PERMISSIBLE BANK FINANCE

Name of the Borrower :-

(Rs in lakh)

3/31/2009 3/31/2010 3/31/2011 3/31/2012

Actuals Actuals Estimates Projections
(3) (3) (4) (4)

1. Total Current Assets 3,926.81 4,472.05 5,502.48 7,189.08

(9 in form IV)

2. Other current liabilities 3,034.43 3,550.14 3,800.00 5,100.00

(Other than bank borrowings)
(14 of Form IV)

3. Other current liabilities 3,191.97 3,779.39 4,400.00 5,750.00

(Including bank borrowings)
(10 of Form IV)

A 4. Working Capital Gap(WCG) 892.38 921.91 1,702.48 2,089.08

(1-2)

B 5.20% OF Total Current Assets 785.36 894.41 1,100.50 1,437.82

C 6.Estimated NWC 734.84 692.66 1,102.48 1,439.08

(1-3)

7. A - B 107.02 27.50 601.98 651.26

8. A - C 157.54 229.25 600.00 650.00

9. Permissible Bank Finance

(Minimum of 7 & 8) 107.02 27.50 600.00 650.00
 FORM VI (A) :FUNDS FLOW STATEMENT

Name of the Bank :- CORPORATION BANK

Name of the Borrower :-
(Rs in lakh)

3/31/2008 3/31/2009 3/31/2010 3/31/2011 3/31/2012

Actuals Actuals Actuals Estimates Projections
1. SOURCES

a) Cash Accruals 50.49 34.42 87.25 116.90 194.60

b) Depreciation 0.89 9.98 17.32 22.24 22.00

c) Increase in capital (8.00) (14.75) 8.00 - -

d) Increase in Term Liabilities 33.67 (51.52) (156.74) 270.68 120.00

(Including Public Deposits)

e) Decrease in :
i) Fixed Assets - - - - -
ii) Other non-current assets 13.86 - - - -
iii) Intangible Assets (1.85) (64.49) 61.55 - -
f) Others - - - - -

g) TOTAL 89.06 (86.36) 17.38 409.82 336.60

2. USES
c) Increase in :
i) Fixed Assets 2.38 1.67 59.56 - -

f) TOTAL 2.38 1.67 59.56 - -

3. Long Term Surplus/Deficit(-) (1-2) 86.68 (88.03) (42.18) 409.82 336.60

4. Increase/decrease in current assets (67.10) (953.21) 545.24 1,030.43 -

(as per details given below)
5. Increase/decrease in current liabilities (177.59) (858.45) 515.71 249.86 1,300.00
other than bank borrowings
6. Increase/decrease in 110.49 (94.76) 29.53 780.57 386.60
working capital gap

7. Net surplus/deficit(-) (23.81) 6.73 (71.71) (370.75) (50.00)

(Difference of 3 & 6)

8. Increase/decrease in 23.81 (6.73) 71.71 370.75 50.00

Bank borrowing

INCREASE/DECREASE IN NET SALES (815.38) (2,586.82) 3,274.02 6,156.12 10,000.00

 Name of the Borrower :-
(Rs in lakh)
KEY RATIOS
3/31/2008 3/31/2009 3/31/2010 3/31/2011 3/31/2012
Actuals Actuals Actuals Estimates Projections
1 2 3 4 5

1. a. Gross Sales 18350.04 15774.94 18937.03 25000.00 35000.00

b. % Growth in Sales -4.49% -14.03% 20.05% 32.02% 40.00%
2. Net Sales (Net of Excise) 18350.04 15774.94 18937.03 25000.00 35000.00

3. Amount of Net Profit/Loss Before Tax 58.61 52.92 68.84 167.00 278.00
4. Net Profit/Loss After Tax 42.49 34.42 47.25 116.90 194.60
5. Depreciation provided for 15.44 13.68 22.24 22.24 22.00
6. Cash Generation 57.93 48.10 69.49 139.14 216.60
7. Tangible Net Worth(Excl. Rev.Res.) 352.10 307.28 464.08 580.98 775.58

8. Capital Employed 874.68 778.34 778.40 1165.98 1480.58

9. Return on Capital Employed in % 4.86% 4.42% 6.07% 10.03% 13.14%
10. Debt Equity Ratio 1.48 1.53 0.68 1.01 0.91
11. Working Capital Gap 987.14 892.38 921.91 1702.48 2089.08
12. Required Net Working Capital 1220.01 981.70 1118.01 1375.62 1797.27
13. Actual Net Working Capital 822.87 785.36 894.41 1100.50 1437.82
14. Net Profit/Net Sales (%) 0.23% 0.22% 0.25% 0.47% 0.56%

15. Current Ratio 1.20 1.23 1.18 1.25 1.25

16. Total Outside Liabilities/
Tangible Net Worth 13.01 11.92 8.82 8.58 8.32

17. Bank Borrowings/Net Sales 0.90% 1.00% 1.21% 2.40% 1.86%

18. Stock in trade 447.51 322.05 192.76 540.00 750.00

(No. of months) (0.29) (0.25) (0.12) (0.26) (0.26)
19. Receivables -(as per Form IV) 3835.97 2892.71 4043.02 4450.00 6000.00
Debtors Turnover Ratio (Days) 76 67 78 65 63
Creditors Turnover Ratio (Days) 78 70 69 57 55

20. NWC to TCA (%) 16.86% 18.71% 15.49% 20.04% 20.02%

21. Inventory Turnover Ratio
0.04 0.03 0.01 0.03 0.02
22. Debtors Turnover Ratio
0.21 0.18 0.21 0.18 0.17
23. Creditors Turnover Ratio
0.21 0.18 0.18 0.15 0.15
24. Bank borrowings/Net Sales (%)
0.90% 1.00% 1.21% 2.40% 1.86%
25. Bank borrowings/Total Current Liabilities
(%) 4.05% 4.94% 6.07% 13.64% 11.30%

26.Share capital 109.00 109.00 117.00 117.00 117.00

27.Reserve & Surplus 231.20 265.62 352.87 469.77 664.37

28.Total of 26+27 340 375 470 587 781

29.Loans 523 471 314 585 705

Capital Gearing Ratio
3.5 : 5.25 3.75 : 4.75 4.70 : 3.10 5.87 : 5.85 7.80 : 7.05
XXXX LTD
Operative Profitability estimates are made based on the past acutals, which are as
follows:

Particulars
i) Cost of goods sold 96.75% of Sales
a) Imported 30% of Purchases
b) Indigenous including freight 70% of Purchases

ii) Freight 3.50% of Purchases

iii) Office & Administrative Expenses 0.70% of Sales

v) Repairs & maintenance 0.05% of Sales

vi) Selling,general & administrative

expenses 0.75% of Sales

Closing Stock of Finished Goods 8 No of Days of Purchases

Receivables 65 No of Days of Gross Sales

Creditors 60 No. Days of Purchases