Kota Solution

Please note:

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

This spreadsheet supports INSTRUCTOR analysis of the case, "Kota Fibres, Ltd." (UVA -F-1359 v. 1.1).

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.

BASE CASE PONDICHERRY

Comparative Overview of Financial Results Associated with Various Proposals

Base CaseDebt Balance Summary Debt Balance Summary

Jan 01 1,146,269 Jan 01June 01 32,950,665 June 01Dec 01 3,463,702 Dec 01

Gross Sales 90,900,108 Excise Taxes 13,635,016 Net Sales 77,265,092 Cost of Goods Sold 66,993,380 Gross Profit 10,271,712 Operating Expenses 5,454,006 Depreciation 1,073,731 Interest Expense (Income) 1,835,620 Profit Before Taxes 1,908,354 Income Taxes 572,506 Net Profit 1,335,848 Net Profit vs. Base Case

PONDICHERRY 30 DAY INVENTORY HIBACHI JIT

Comparative Overview of Financial Results Associated with Various Proposals

Pondicherry Inventory Hibachi JITDebt Balance Summary Debt Balance Summary Debt Balance Summary

1,344,093 Jan 01 1,200,185 Jan 01 1,353,298 35,809,122 June 01 25,435,575 June 01 24,728,089 3,897,616 Dec 01 2,957,147 Dec 01 1,844,640

96,900,108 90,900,108 90,900,108 14,535,016 13,635,016 13,635,016 82,365,092 77,265,092 77,265,092 71,415,380 66,993,380 66,993,380 10,949,712 10,271,712 10,271,712 5,814,006 5,454,006 5,454,006 1,073,731 1,073,731 1,073,731 2,024,489 1,442,475 11,145 2,037,485 2,301,500 2,407,054

611,246 690,450 722,116 1,426,240 1,611,050 1,684,938

90,392 275,202 258,698

PONDICHERRY SALES OPTION

Summary of Sales and Credit ResultsSales 6,000,000

January FebruaryNormal Cycle 2.88% 3.18%Pondicherry Sales 172,681 190,945 Credit Outstanding 172,681 363,626

Avg Credit 1,296,566 Additional Profit 90,392 Return 6.97%

Below are the basic forecast exhibits of the model, adjusted to reflect the Pondicherry proposal.

Exhibit LocationExhibit 8 Forecast of Income Statements A25Exh. 8 contd Forecast of Balance Sheets A44Exhibit 9 Schedule of Cash Receipts and Disb A65Exhibit 10 Forecasted T-ACCOUNTS A96

EXHIBIT 8KOTA FIBRES, LTD.

Monthly Forecast of Income Statements(In Rupees)

January February

Gross Sales 2,788,801 3,083,770 Excise Taxes 418,320 462,566 Net Sales 2,370,481 2,621,205 Cost of Goods Sold 2,055,346 2,272,739 Gross Profit 315,135 348,466 Operating Expenses 484,501 484,501 Depreciation 84,130 84,130 Interest Expense (Income) (1) 12,254 28,901 Profit Before Taxes (265,750) (249,066)Income Taxes (79,725) (74,720)Net Profit (186,025) (174,346)

(1) Interest expense = Notes Payable * 145%/12 months.

EXHIBIT 8 -contd-KOTA FIBRES, LTD.

Forecasted Monthly Balance Sheets for 1990(In Rupees)

January FebruaryAssetsCash (1) 750,000 750,000 Accounts Receivable (2) 2,946,030 3,655,168 Inventories (3) 2,378,033 6,153,817 Total Current Assets 6,074,063 10,558,985 Net Prop. Plant & Equip. (4) 8,527,238 8,443,107 Total Assets 14,601,300 19,002,093

Liabilities and Owners' EquityAccounts Payable (5) 1,670,990 4,225,425 Note Payable- Bank (6) 1,344,093 3,439,517 Accrued Taxes (7) (79,725) (154,445) Total Current Liabilities 2,935,358 7,510,497 Shareholders' Equity (8) 11,665,942 11,491,596 Total Liabilities & Equity 14,601,300 19,002,093


Schedule of Cash Receipts and Disbursements(In Rupees)

January February

Assume: Sales 2,788,801 3,083,770 Purchases (1) ### 2,607,529 5,161,963 Debt Outstanding 684,102 1,344,093 3,439,517

Receipts: Accts Rcvble Collected 2,515,500 2,374,632 New Borrowings (Repayments) 659,990 2,095,424

Disburs.: Accounts Paid (2) 1,696,074 2,607,529 Capital Expenditures 0 0 Interest Payments 12,254 28,901 Excise Tax Paid 418,320 462,566 Operating Expenses 484,501 484,501

Accrued Income Tax Paid 0 0 Wages 576,665 886,560 Dividends 0 0 Subtotal: Disbursements 3,187,813 4,470,056

Receipts - Disbursements (12,323) 0

BOP Cash Balance 762,323 750,000 EOP Cash Balance 762,323 750,000 750,000 (1) Equal to 55 percent of sales in period (T+2).

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

Exhibit 10KOTA FIBRES, LTD.

Forecasted T-Accounts Supporting Financial Statements(In Rupees)

January February1. Schedule of Accounts ReceivableBeginning 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 PondicherryEnd of Period 2,946,030 3,655,168 (1) 40% of sales in period (T-1).

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

2. Schedule of InventoriesBeginning of Period 1,249,185 2,378,033 Plus Purchases (1) ### 2,607,529 5,161,963 Plus Labor 576,665 886,560 Less Shipments (COGS) 2,055,346 2,272,739 End of Period 2,378,033 6,153,817

3. Schedule of Accounts PayableBeginning of Period 759,535 1,670,990 + Purchases (1) 2,607,529 5,161,963 - Payments (2) 1,696,074 2,607,529 End of Period 1,670,990 4,225,425

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


4. Schedule of Shareholder's EquityBeginning of Period 11,851,967 11,665,942 Plus Net Profit (186,025) (174,346) Less Dividends 0 0 End of Period 11,665,942 11,491,596

5. Schedule of Accrued TaxesBeginning of Period 0 (79,725) Plus Monthly Tax Expense (@ 30%) (79,725) (74,720) Less Quarterly Tax Payments 0 0 End of Period (79,725) (154,445)

6. Schedule of Property, Plant and EquipmentBeginning Gross PP&E 10,095,646 10,095,646 Plus Capital Expenditures 0 0 Ending Gross PP&E 10,095,646 10,095,646 Monthly Depreciation Expense 84,130 84,130 Less Cumulative Depr'n. 1,568,408 1,652,539 Ending Net PP&E 8,527,238 8,443,107

From Balance Sheet 1,344,093 3,439,517 From CR&D 1,344,093 3,439,517 DIFFERENCE 0 0

March April May June July August4.89% 9.69% 15.28% 19.35% 17.95% 9.43%

293,558 581,138 916,538 1,160,948 1,076,932 565,862 600,199 1,002,629 1,694,359 2,466,847 2,851,959 2,420,629

Below are the basic forecast exhibits of the model, adjusted to reflect the Pondicherry proposal.

Pro Forma

March April May June July August

4,740,962 9,385,388 14,802,098 18,749,324 17,392,465 9,138,686 711,144 1,407,808 2,220,315 2,812,399 2,608,870 1,370,803

4,029,817 7,977,580 12,581,783 15,936,925 14,783,595 7,767,883 3,494,089 6,917,031 10,909,146 13,818,251 12,818,246 6,735,212

535,729 1,060,549 1,672,637 2,118,674 1,965,348 1,032,672 484,501 484,501 484,501 484,501 484,501 484,501 87,047 87,047 87,047 89,964 89,964 89,964 79,018 172,508 291,161 393,238 396,769 287,965

(114,837) 316,493 809,928 1,150,972 994,115 170,242 (34,451) 94,948 242,978 345,292 298,234 51,073 (80,386) 221,545 566,950 805,680 695,880 119,169


750,000 750,000 750,000 750,000 750,000 750,000 5,554,207 11,240,081 19,592,683 27,019,955 28,240,995 19,220,965

12,555,950 18,719,039 20,881,872 15,342,289 7,182,670 4,057,883 18,860,157 30,709,120 41,224,555 43,112,244 36,173,665 24,028,848 8,706,060 8,619,013 8,531,966 8,792,002 8,702,039 8,612,075

27,566,217 39,328,133 49,756,521 51,904,246 44,875,704 32,640,923

7,204,615 9,375,589 8,629,317 4,089,739 2,013,155 1,670,990 9,639,288 18,913,736 29,278,468 35,809,122 29,863,049 17,800,191 (188,896) (93,948) 149,031 0 298,234 349,307

16,655,007 28,195,378 38,056,816 39,898,860 32,174,438 19,820,488 10,911,210 11,132,756 11,699,705 12,005,386 12,701,266 12,820,435 27,566,217 39,328,133 49,756,521 51,904,246 44,875,704 32,640,923


4,740,962 9,385,388 14,802,098 18,749,324 17,392,465 9,138,686 8,141,154 10,312,128 9,565,856 5,026,277 2,949,693 2,607,529 9,639,288 18,913,736 29,278,468 35,809,122 29,863,049 17,800,191

2,841,923 3,699,514 6,449,496 11,322,052 16,171,424 18,158,716 5,699,771 9,274,449 10,364,732 6,530,653 (5,946,073) (12,062,858)

5,161,963 8,141,154 10,312,128 9,565,856 5,026,277 2,949,693 350,000 0 0 350,000 0 0 79,018 172,508 291,161 393,238 396,769 287,965

711,144 1,407,808 2,220,315 2,812,399 2,608,870 1,370,803 484,501 484,501 484,501 484,501 484,501 484,501

0 0 0 494,322 0 0 1,755,068 2,767,992 3,506,124 3,252,391 1,708,934 1,002,896

500,000 0 0 500,000 0 0 8,541,693 12,973,962 16,814,228 17,852,705 10,225,351 6,095,858

0 0 0 0 0 0

750,000 750,000 750,000 750,000 750,000 750,000 750,000 750,000 750,000 750,000 750,000 750,000


3,655,168 5,554,207 11,240,081 19,592,683 27,019,955 28,240,995 4,740,962 9,385,388 14,802,098 18,749,324 17,392,465 9,138,686 1,157,130 1,778,962 3,521,700 5,554,224 7,035,350 6,526,213 1,569,672 1,735,695 2,668,442 5,282,550 8,331,336 10,553,026

115,121 184,857 259,354 485,278 804,738 1,079,478 5,554,207 11,240,081 19,592,683 27,019,955 28,240,995 19,220,965

6,153,817 12,555,950 18,719,039 20,881,872 15,342,289 7,182,670 8,141,154 10,312,128 9,565,856 5,026,277 2,949,693 2,607,529 1,755,068 2,767,992 3,506,124 3,252,391 1,708,934 1,002,896 3,494,089 6,917,031 10,909,146 13,818,251 12,818,246 6,735,212

12,555,950 18,719,039 20,881,872 15,342,289 7,182,670 4,057,883

4,225,425 7,204,615 9,375,589 8,629,317 4,089,739 2,013,155 8,141,154 10,312,128 9,565,856 5,026,277 2,949,693 2,607,529 5,161,963 8,141,154 10,312,128 9,565,856 5,026,277 2,949,693 7,204,615 9,375,589 8,629,317 4,089,739 2,013,155 1,670,990

11,491,596 10,911,210 11,132,756 11,699,705 12,005,386 12,701,266 (80,386) 221,545 566,950 805,680 695,880 119,169 500,000 0 0 500,000 0 0

10,911,210 11,132,756 11,699,705 12,005,386 12,701,266 12,820,435

(154,445) (188,896) (93,948) 149,031 0 298,234 (34,451) 94,948 242,978 345,292 298,234 51,073

0 0 0 494,322 0 0 (188,896) (93,948) 149,031 0 298,234 349,307

10,095,646 10,445,646 10,445,646 10,445,646 10,795,646 10,795,646 350,000 0 0 350,000 0 0

10,445,646 10,445,646 10,445,646 10,795,646 10,795,646 10,795,646 87,047 87,047 87,047 89,964 89,964 89,964

1,739,586 1,826,633 1,913,680 2,003,644 2,093,607 2,183,571 8,706,060 8,619,013 8,531,966 8,792,002 8,702,039 8,612,075

9,639,288 18,913,736 29,278,468 35,809,122 29,863,049 17,800,191 9,639,288 18,913,736 29,278,468 35,809,122 29,863,049 17,800,191

0 0 0 0 0 0

September October November December5.53% 4.89% 3.89% 3.04%

332,079 293,558 233,119 182,643 1,619,485 1,004,764 749,170 612,446

September October November December The Year

5,363,079 4,740,962 ### ### 96,900,108 804,462 711,144 564,732 442,454 14,535,016

4,558,617 4,029,817 ### ### 82,365,092 3,952,589 3,494,089 ### ### 71,415,380

606,028 535,729 425,432 333,315 10,949,712 484,501 484,501 484,501 484,501 5,814,006 92,880 92,880 92,880 95,797 1,073,731

165,444 92,666 57,892 46,674 2,024,489 (136,797) (134,318) (209,841) (293,656) 2,037,485 (41,039) (40,296) (62,952) (88,097) 611,246 (95,758) (94,023) (146,889) (205,559) 1,426,240

September October November December

750,000 750,000 750,000 750,000 10,260,658 7,109,306 ### ###3,062,538 1,894,814 ### ###

14,073,196 9,754,120 ### ###8,869,195 8,776,314 ### ###

22,942,391 ### ### ###

1,134,146 685,793 ### ###9,583,567 5,754,282 ### ###

0 (40,296) (103,248) (191,345)10,717,713 6,399,780 ### ###12,224,678 ### ### ###22,942,391 ### ### ###

September October November December January February

5,363,079 4,740,962 ### ### 3,573,637 ###2,070,685 1,622,331 ### ###9,583,567 5,754,282 ### ###

14,323,386 7,892,313 ### ###(8,216,624) ### ### 69,854

2,607,529 2,070,685 ### ###350,000 0 0 350,000 165,444 92,666 57,892 46,674 804,462 711,144 564,732 442,454 484,501 484,501 484,501 484,501

308,268 0 0 0 886,560 704,033 551,593 668,270 500,000 0 0 500,000

6,106,763 4,063,029 ### ###

0 0 0 0

750,000 750,000 750,000 750,000 750,000 750,000 750,000 750,000


19,220,965 ### ### ###5,363,079 4,740,962 ### ###3,429,130 2,012,400 ### ###9,789,320 5,143,694 ### ###1,104,937 736,219 410,007 306,398

10,260,658 7,109,306 ### ###

4,057,883 3,062,538 ### ###2,070,685 1,622,331 ### ###

886,560 704,033 551,593 668,270 3,952,589 3,494,089 ### ###3,062,538 1,894,814 ### ###

1,670,990 1,134,146 685,793 ###2,070,685 1,622,331 ### ###2,607,529 2,070,685 ### ###1,134,146 685,793 ### ###

12,820,435 ### ### ###(95,758) (94,023) (146,889) (205,559)500,000 0 0 500,000

12,224,678 ### ### ###

349,307 0 (40,296) (103,248)(41,039) (40,296) (62,952) (88,097)308,268 0 0 0

0 (40,296) (103,248) (191,345)

10,795,646 ### ### ### ###350,000 0 0 350,000 ###

11,145,646 ### ### ### ###92,880 92,880 92,880 95,797 ###

2,276,451 2,369,332 ### ### ###8,869,195 8,776,314 ### ### ###

9,583,567 5,754,282 ### ###9,583,567 5,754,282 ### ###

0 0 0 0

January February MarchSales ### ### ###A/R ### ### ###Inv ### ### ###A/P ### ### ###n/p ### ### ###

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

INVENTORY REDUCTION TO 30 DAYS

Summary of Sales, Inventory and Credit ResultsJanuary February

Gross Sales 2,616,120 2,892,825 Inventories (3) 1,453,117 2,598,841 Note Payable- Bank (6) 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 A20Exh. 8 contd Forecast of Balance Sheets A40Exhibit 9 Schedule of Cash Receipts and DisbursementA61Exhibit 10 Forecasted T-ACCOUNTS A92



January February

Gross Sales 2,616,120 2,892,825 Excise Taxes 392,418 433,924 Net Sales 2,223,702 2,458,901 Cost of Goods Sold 1,928,080 2,132,012 Gross Profit 295,622 326,889 Operating Expenses 454,501 454,501 Depreciation 84,130 84,130 Interest Expense (Income) (1) 11,384 20,283 Profit Before Taxes (254,394) (232,025)Income Taxes (76,318) (69,607)Net Profit (178,076) (162,417)

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



January FebruaryAssetsCash (1) 750,000 750,000 Accounts Receivable (2) 2,773,349 3,291,542 Inventories (3) 1,453,117 2,598,841 Total Current Assets 4,976,466 6,640,383 Net Prop. Plant & Equip.(4) 8,733,016 8,648,885 Total Assets 13,709,481 15,289,269

Liabilities and Owners' EquityAccounts Payable (5) 911,723 1,766,741 Note Payable- Bank (6) 1,200,185 2,156,979 Accrued Taxes (7) (76,318) (145,925) Total Current Liabilities 2,035,590 3,777,794 Shareholders' Equity (8) 11,673,891 11,511,474 Total Liabilities & Equity 13,709,481 15,289,269



January February

Assume: Sales 2,616,120 2,892,825 Purchases (1) 1,438,866 1,591,054 2,446,072 Debt Outstanding 684,102 1,200,185 2,156,979

Receipts: Accts Rcvble Collected 2,515,500 2,374,632 New Borrowings (Repayments) 310,304 956,793

Disburs.: Accounts Paid (2) 1,438,866 1,591,054 Capital Expenditures 0 0 Interest Payments 11,384 20,283 Excise Tax Paid 392,418 433,924 Operating Expenses 454,501 454,501 Accrued Income Tax Paid 0 0 Wages 540,958 831,665 Dividends 0 0 Subtotal: Disbursements 2,838,127 3,331,425

Receipts - Disbursements (12,323) 0

BOP Cash Balance 762,323 750,000 EOP Cash Balance 762,323 750,000 750,000 (1) Equal to 55 percent of sales in period (T+1).




January February1. Schedule of Accounts ReceivableBeginning 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. Schedule of InventoriesBeginning of Period 1,249,185 1,453,117 Plus Purchases (1) 1,438,866 1,591,054 2,446,072 Plus Labor 540,958 831,665 Less Shipments (COGS) 1,928,080 2,132,012 End of Period 1,453,117 2,598,841

3. Schedule of Accounts PayableBeginning of Period 759,535 911,723 + Purchases (1) 1,591,054 2,446,072 - Payments (2) 1,438,866 1,591,054 End of Period 911,723 1,766,741 (1) Equal to 55 percent of sales in period (T+1).


4. Schedule of Shareholder's EquityBeginning of Period 11,851,967 11,673,891

To adjust the spreadsheet for the new inventory policy, simply change the purchasing from two months ahead to one month ahead.

In addition, adjust the formula for wages so that wages are driven by this month's purchases rather than last month's purchases.

B108

To adjust the spreadsheet for the new inventory policy, simply change the purchasing from two months ahead to one month ahead.

A109


Plus Net Profit (178,076) (162,417) Less Dividends 0 0 End of Period 11,673,891 11,511,474

5. Schedule of Accrued TaxesBeginning of Period 0 (76,318) Plus Monthly Tax Expense (@ 30%) (76,318) (69,607) Less Quarterly Tax Payments 0 0 End of Period (76,318) (145,925)

6. Schedule of Property, Plant and EquipmentBeginning Gross PP&E 10,095,646 10,095,646 Plus Capital Expenditures 0 0 Ending Gross PP&E 10,095,646 10,095,646 10,095,646 Monthly Depreciation Expense 84,130 84,130 Less Cumulative Depr'n. 1,278,500 1,362,630 1,446,761 Ending Net PP&E 8,817,146 8,733,016 8,648,885

From Balance Sheet 1,200,185 2,156,979 From CR&D 1,200,185 2,156,979 DIFFERENCE 0 0

Exhibit TN3

January February MarchGross sales 2,616,120 2,892,825 4,447,404 Net profit (178,076) (162,417) (59,849)

AssetsCash (1) 750,000 750,000 750,000 Accounts Receivable (2) 2,773,349 3,291,542 5,012,144 Inventories (3) 1,453,117 2,598,841 5,809,837 Total Current Assets 4,976,466 6,640,383 11,571,981 Net Prop. Plant & Equip.(4) 8,733,016 8,648,885 8,911,838 Total Assets 13,709,481 15,289,269 20,483,819 Liabilities and Owners' Equity

Accounts Payable (5) 911,723 1,766,741 4,163,007 Note Payable- Bank (6) 1,200,185 2,156,979 5,540,762 Accrued Taxes (7) (76,318) (145,925) (171,575) Total Current Liabilities 2,035,590 3,777,794 9,532,193 Shareholders' Equity (8) 11,673,891 11,511,474 10,951,626 Total Liabilities & Equity 13,709,481 15,289,269 20,483,819 Schedule of InventoriesBeginning of Period 1,249,185 1,453,117 2,598,841 Plus Purchases (1) 1,591,054 2,446,072 4,842,338 Plus Labor 540,958 831,665 1,646,395 Less Shipments (COGS) 1,928,080 2,132,012 3,277,737 End of Period 1,453,117 2,598,841 5,809,837

March April May June July August4,447,404 8,804,250 13,885,560 17,588,376 16,315,533 8,572,824 5,809,837 9,554,762 12,283,738 11,345,652 5,639,276 3,028,952 5,540,762 11,342,182 18,797,552 25,435,575 23,845,118 14,393,177

Below are the basic forecast exhibits, adjusted to reflect the inventory policy proposal.

Pro Forma


4,447,404 8,804,250 13,885,560 17,588,376 16,315,533 8,572,824 667,111 1,320,638 2,082,834 2,638,256 2,447,330 1,285,924

3,780,293 7,483,613 11,802,726 14,950,120 13,868,203 7,286,900 3,277,737 6,488,732 10,233,658 12,962,633 12,024,548 6,318,171

502,557 994,880 1,569,068 1,987,486 1,843,655 968,729 454,501 454,501 454,501 454,501 454,501 454,501 87,047 87,047 87,047 89,964 89,964 89,964 46,507 102,001 182,094 267,242 297,738 231,023

(85,498) 351,332 845,426 1,175,780 1,001,453 193,242 (25,649) 105,399 253,628 352,734 300,436 57,973 (59,849) 245,932 591,799 823,046 701,017 135,269


750,000 750,000 750,000 750,000 750,000 750,000 5,012,144 10,301,737 17,997,155 24,748,757 25,697,604 17,191,189 5,809,837 9,554,762 12,283,738 11,345,652 5,639,276 3,028,952

11,571,981 20,606,500 31,030,893 36,844,409 32,086,879 20,970,140 8,911,838 8,824,791 8,737,744 8,997,780 8,907,817 8,817,853

20,483,819 29,431,291 39,768,637 45,842,190 40,994,696 29,787,993

4,163,007 6,957,727 8,994,276 8,294,212 4,035,722 2,087,719 5,540,762 11,342,182 18,797,552 25,435,575 23,845,118 14,393,177 (171,575) (66,175) 187,453 0 300,436 358,409

9,532,193 18,233,733 27,979,281 33,729,787 28,181,276 16,839,304 10,951,626 11,197,558 11,789,356 12,112,403 12,813,420 12,948,689 20,483,819 29,431,291 39,768,637 45,842,190 40,994,696 29,787,993


4,447,404 8,804,250 13,885,560 17,588,376 16,315,533 8,572,824 4,842,338 7,637,058 9,673,607 8,973,543 4,715,053 2,767,050 5,540,762 11,342,182 18,797,552 25,435,575 23,845,118 14,393,177

2,726,802 3,514,657 6,190,142 10,836,774 15,366,686 17,079,239 3,383,783 5,801,420 7,455,371 6,638,023 (1,590,457) (9,451,941)

2,446,072 4,842,338 7,637,058 9,673,607 8,973,543 4,715,053 350,000 0 0 350,000 0 0 46,507 102,001 182,094 267,242 297,738 231,023

667,111 1,320,638 2,082,834 2,638,256 2,447,330 1,285,924 454,501 454,501 454,501 454,501 454,501 454,501

0 0 0 540,187 0 0 1,646,395 2,596,600 3,289,026 3,051,005 1,603,118 940,797

500,000 0 0 500,000 0 0 6,110,585 9,316,076 13,645,513 17,474,797 13,776,229 7,627,297

0 0 0 0 0 0

750,000 750,000 750,000 750,000 750,000 750,000 750,000 750,000 750,000 750,000 750,000 750,000


3,291,542 5,012,144 10,301,737 17,997,155 24,748,757 25,697,604 4,447,404 8,804,250 13,885,560 17,588,376 16,315,533 8,572,824 1,157,130 1,778,962 3,521,700 5,554,224 7,035,350 6,526,213 1,569,672 1,735,695 2,668,442 5,282,550 8,331,336 10,553,026 5,012,144 10,301,737 17,997,155 24,748,757 25,697,604 17,191,189

2,598,841 5,809,837 9,554,762 12,283,738 11,345,652 5,639,276 4,842,338 7,637,058 9,673,607 8,973,543 4,715,053 2,767,050 1,646,395 2,596,600 3,289,026 3,051,005 1,603,118 940,797 3,277,737 6,488,732 10,233,658 12,962,633 12,024,548 6,318,171 5,809,837 9,554,762 12,283,738 11,345,652 5,639,276 3,028,952

1,766,741 4,163,007 6,957,727 8,994,276 8,294,212 4,035,722 4,842,338 7,637,058 9,673,607 8,973,543 4,715,053 2,767,050 2,446,072 4,842,338 7,637,058 9,673,607 8,973,543 4,715,053 4,163,007 6,957,727 8,994,276 8,294,212 4,035,722 2,087,719

11,511,474 10,951,626 11,197,558 11,789,356 12,112,403 12,813,420


(59,849) 245,932 591,799 823,046 701,017 135,269 500,000 0 0 500,000 0 0

10,951,626 11,197,558 11,789,356 12,112,403 12,813,420 12,948,689

(145,925) (171,575) (66,175) 187,453 0 300,436 (25,649) 105,399 253,628 352,734 300,436 57,973

0 0 0 540,187 0 0 (171,575) (66,175) 187,453 0 300,436 358,409

10,095,646 10,445,646 10,445,646 10,445,646 10,795,646 10,795,646 350,000 0 0 350,000 0 0

10,445,646 10,445,646 10,445,646 10,795,646 10,795,646 10,795,646 87,047 87,047 87,047 89,964 89,964 89,964

1,533,808 1,620,855 1,707,902 1,797,866 1,887,829 1,977,793 8,911,838 8,824,791 8,737,744 8,997,780 8,907,817 8,817,853

5,540,762 11,342,182 18,797,552 25,435,575 23,845,118 14,393,177 5,540,762 11,342,182 18,797,552 25,435,575 23,845,118 14,393,177

0 0 0 0 0 0

April May June July August September8,804,250 13,885,560 17,588,376 16,315,533 8,572,824 5,031,000

245,932 591,799 823,046 701,017 135,269 (76,912)

750,000 750,000 750,000 750,000 750,000 750,000 10,301,737 17,997,155 24,748,757 25,697,604 17,191,189 9,003,739 9,554,762 12,283,738 11,345,652 5,639,276 3,028,952 2,598,841

20,606,500 31,030,893 36,844,409 32,086,879 20,970,140 12,352,581 8,824,791 8,737,744 8,997,780 8,907,817 8,817,853 9,074,973

29,431,291 39,768,637 45,842,190 40,994,696 29,787,993 21,427,553

6,957,727 8,994,276 8,294,212 4,035,722 2,087,719 1,766,741 11,342,182 18,797,552 25,435,575 23,845,118 14,393,177 7,289,035

(66,175) 187,453 0 300,436 358,409 0 18,233,733 27,979,281 33,729,787 28,181,276 16,839,304 9,055,776 11,197,558 11,789,356 12,112,403 12,813,420 12,948,689 12,371,777 29,431,291 39,768,637 45,842,190 40,994,696 29,787,993 21,427,553

5,809,837 9,554,762 12,283,738 11,345,652 5,639,276 3,028,952 7,637,058 9,673,607 8,973,543 4,715,053 2,767,050 2,446,072 2,596,600 3,289,026 3,051,005 1,603,118 940,797 831,665 6,488,732 10,233,658 12,962,633 12,024,548 6,318,171 3,707,847 9,554,762 12,283,738 11,345,652 5,639,276 3,028,952 2,598,841

September October November December The Year5,031,000 4,447,404 3,531,762 2,767,050 90,900,108 2,598,841 1,924,013 1,360,420 1,827,609 7,289,035 4,431,877 3,124,139 2,957,147

September October November December The Year

5,031,000 4,447,404 3,531,762 2,767,050 90,900,108 754,650 667,111 529,764 415,058 13,635,016

4,276,350 3,780,293 3,001,998 2,351,993 77,265,092 3,707,847 3,277,737 2,602,909 2,039,316 66,993,380

568,503 502,557 399,089 312,677 10,271,712 454,501 454,501 454,501 454,501 5,454,006 92,880 92,880 92,880 95,797 1,073,731

130,997 70,814 45,651 36,741 1,442,475 (109,875) (115,638) (193,943) (274,362) 2,301,500 (32,962) (34,691) (58,183) (82,309) 690,450 (76,912) (80,947) (135,760) (192,053) 1,611,050

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


750,000 750,000 750,000 750,000 9,003,739 6,295,049 5,029,249 3,715,152 2,598,841 1,924,013 1,360,420 1,827,609

12,352,581 8,969,062 7,139,670 6,292,761 9,074,973 8,982,092 8,889,212 9,143,415

21,427,553 17,951,154 16,028,882 15,436,176

1,766,741 1,263,138 842,547 1,191,195 7,289,035 4,431,877 3,124,139 2,957,147

0 (34,691) (92,874) (175,183)9,055,776 5,660,324 3,873,811 3,973,159

12,371,777 12,290,830 12,155,070 11,463,017 21,427,553 17,951,154 16,028,882 15,436,176

September October November December January February

5,031,000 4,447,404 3,531,762 2,767,050 3,400,956 3,616,031 2,446,072 1,942,469 1,521,878 1,870,526 7,289,035 4,431,877 3,124,139 2,957,147

13,218,449 7,156,094 4,797,562 4,081,147 (7,104,141) (2,857,158) (1,307,738) (166,992)

2,767,050 2,446,072 1,942,469 1,521,878 350,000 0 0 350,000 130,997 70,814 45,651 36,741 754,650 667,111 529,764 415,058 454,501 454,501 454,501 454,501 325,446 0 0 0 831,665 660,439 517,438 635,979 500,000 0 0 500,000

6,114,308 4,298,937 3,489,823 3,914,155

0 0 0 0

750,000 750,000 750,000 750,000 750,000 750,000 750,000 750,000


17,191,189 9,003,739 6,295,049 5,029,249 5,031,000 4,447,404 3,531,762 2,767,050 3,429,130 2,012,400 1,778,962 1,412,705 9,789,320 5,143,694 3,018,600 2,668,442 9,003,739 6,295,049 5,029,249 3,715,152

3,028,952 2,598,841 1,924,013 1,360,420 2,446,072 1,942,469 1,521,878 1,870,526

831,665 660,439 517,438 635,979 3,707,847 3,277,737 2,602,909 2,039,316 2,598,841 1,924,013 1,360,420 1,827,609

2,087,719 1,766,741 1,263,138 842,547 2,446,072 1,942,469 1,521,878 1,870,526 2,767,050 2,446,072 1,942,469 1,521,878 1,766,741 1,263,138 842,547 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 0 (34,691) (92,874)(32,962) (34,691) (58,183) (82,309)325,446 0 0 0

0 (34,691) (92,874) (175,183)

10,795,646 11,145,646 11,145,646 11,145,646 ###350,000 0 0 350,000 1,400,000

11,145,646 11,145,646 11,145,646 11,495,646 ###92,880 92,880 92,880 95,797 1,073,731

2,070,673 2,163,554 2,256,434 2,352,231 23,456,837 9,074,973 8,982,092 8,889,212 9,143,415 ###

7,289,035 4,431,877 3,124,139 2,957,147 7,289,035 4,431,877 3,124,139 2,957,147

0 0 0 0

October November December4,447,404 3,531,762 2,767,050

(80,947) (135,760) (192,053)

750,000 750,000 750,000 6,295,049 5,029,249 3,715,152 1,924,013 1,360,420 1,827,609 8,969,062 7,139,670 6,292,761 8,982,092 8,889,212 9,143,415

17,951,154 16,028,882 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

2,598,841 1,924,013 1,360,420 1,942,469 1,521,878 1,870,526

660,439 517,438 635,979 3,277,737 2,602,909 2,039,316 1,924,013 1,360,420 1,827,609

Hibachi's Just in Time proposal

Summary of Sales, Inventory and Debt ResultsJanuary

Gross Sales 2,616,120 Inventories (3) 1,452,010 Note Payable- Bank (6) 1,353,298

Below are the base case forecast exhibits adjusted to reflect the Hibachi proposal.Exhibit Location

Exhibit 8 Forecast of Income Statements A549..Q567Exh. 8 contd Forecast of Balance Sheets A569..Q588Exhibit 9 Schedule of Cash Receipts and Disbursements A590..Q619Exhibit 10 Forecasted T-ACCOUNTS A621..Q669Graph V562..AD580



January

Gross Sales 2,616,120 Excise Taxes 392,418 Net Sales 2,223,702 Cost of Goods Sold 1,928,080 Gross Profit 295,622 Operating Expenses 454,501 Depreciation 84,130 Interest Expense (Income) (1) 12,309 Profit Before Taxes (255,319)Income Taxes (76,596)Net Profit (178,723)

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



JanuaryAssetsCash (1) 750,000 Accounts Receivable (2) 2,773,349 Inventories (3) 1,452,010 Total Current Assets 4,975,359 Net Prop. Plant & Equip. (4) 8,733,016 Total Assets 13,708,374

Liabilities and Owners' EquityAccounts Payable (5) 758,428 Note Payable- Bank (6) 1,353,298 Accrued Taxes (7) (76,596) Total Current Liabilities 2,035,130 Shareholders' Equity (8) 11,673,244 Total Liabilities & Equity 13,708,374



January

Assume: Sales 2,616,120 Purchases 1,591,054 1,589,947 Debt Outstanding 684,102 1,353,298

Receipts: Accts Rcvble Collected 2,515,500 New Borrowings (Repayments) 463,417

Disburs.: Accounts Paid 1,591,054 Capital Expenditures 0 Interest Payments 12,309 Excise Tax Paid 392,418 Operating Expenses 454,501 Accrued Income Tax Paid 0 Wages 540,958 Dividends 0 Subtotal: Disbursements 2,991,240

Receipts - Disbursements (12,323)

BOP Cash Balance 762,323 EOP Cash Balance 762,323 750,000



January1. Schedule of Accounts ReceivableBeginning 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. Schedule of InventoriesBeginning of Period 1,249,185 Plus Purchases (1) 1,591,054 1,589,947 Plus Labor 540,958 Less Shipments (COGS) 1,928,080 End of Period 1,452,010

3. Schedule of Accounts PayableBeginning of Period 759,535 + Purchases (1) 1,589,947 - Payments (2) 1,591,054 End of Period 758,428 (1) Equal to 55 percent of sales in period (T+1).


4. Schedule of Shareholder's EquityBeginning of Period 11,851,967

Purchasesm = (Salesm+ 2 x(PS

) x . 65) + (Salesm+ 2 x(PS

) x . 35 x . 05) + (Salesm x (PS

)x .35 x . 95 )

Adjust purchases using the following formula:

A108


Plus Net Profit (178,723) Less Dividends 0 End of Period 11,673,244

5. Schedule of Accrued TaxesBeginning of Period 0 Plus Monthly Tax Expense (@ 30%) (76,596) Less Quarterly Tax Payments 0 End of Period (76,596)

6. Schedule of Property, Plant and EquipmentBeginning Gross PP&E 10,095,646 Plus Capital Expenditures 0 Ending Gross PP&E 10,095,646 10,095,646 Monthly Depreciation Expense 84,130 Less Cumulative Depr'n. 1,278,500 1,362,630 Ending Net PP&E 8,817,146 8,733,016

From Balance Sheet 1,353,298 From CR&D 1,353,298 DIFFERENCE 0

Exhibit TN2January February March

Gross sales 2,616,120 2,892,825 4,447,404 Net profit (178,723) (162,477) (60,165)

AssetsCash (1) 750,000 750,000 750,000 Accounts Receivable (2) 2,773,349 3,291,542 5,012,144 Inventories (3) 1,452,010 3,177,581 6,938,680 Total Current Assets 4,975,359 7,219,123 12,700,824 Net Prop. Plant & Equip. (4) 8,733,016 8,648,885 8,911,838 Total Assets 13,708,374 15,868,008 21,612,662

Liabilities and Owners' Equit Accounts Payable (5) 758,428 2,485,482 5,079,536 Note Payable- Bank (6) 1,353,298 2,017,987 5,754,537 Accrued Taxes (7) (76,596) (146,229) (172,014) Total Current Liabilities 2,035,130 4,357,241 10,662,060 Shareholders' Equity (8) 11,673,244 11,510,767 10,950,602 Total Liabilities & Equity 13,708,374 15,868,008 21,612,662

Schedule of InventoriesBeginning of Period 1,249,185 1,452,010 3,177,581 Plus Purchases (1) 1,589,947 3,317,001 5,911,055 Plus Labor 540,958 540,582 1,127,780 Less Shipments (COGS) 1,928,080 2,132,012 3,277,737 End of Period 1,452,010 3,177,581 6,938,680

Summary of Sales, Inventory and Debt ResultsFebruary March April May June

2,892,825 4,447,404 8,804,250 13,885,560 17,588,376 3,177,581 6,938,680 10,526,916 11,565,271 7,866,326 2,017,987 5,754,537 12,043,361 19,390,528 24,728,089

Below are the base case forecast exhibits adjusted to reflect the Hibachi proposal.


Monthly Forecast of Income Statements Pro Forma(In Rupees)

February March April May June

2,892,825 4,447,404 8,804,250 13,885,560 17,588,376 433,924 667,111 1,320,638 2,082,834 2,638,256

2,458,901 3,780,293 7,483,613 11,802,726 14,950,120 2,132,012 3,277,737 6,488,732 10,233,658 12,962,633

326,889 502,557 994,880 1,569,068 1,987,486 454,501 454,501 454,501 454,501 454,501 84,130 87,047 87,047 87,047 89,964 20,368 46,959 107,529 189,913 266,550

(232,110) (85,950) 345,804 837,608 1,176,472 (69,633) (25,785) 103,741 251,282 352,942

(162,477) (60,165) 242,063 586,325 823,531




750,000 750,000 750,000 750,000 750,000 3,291,542 5,012,144 10,301,737 17,997,155 24,748,757 3,177,581 6,938,680 10,526,916 11,565,271 7,866,326 7,219,123 12,700,824 21,578,653 30,312,426 33,365,083 8,648,885 8,911,838 8,824,791 8,737,744 8,997,780

15,868,008 21,612,662 30,403,445 39,050,171 42,362,863

2,485,482 5,079,536 7,235,691 7,697,643 5,532,254 2,017,987 5,754,537 12,043,361 19,390,528 24,728,089 (146,229) (172,014) (68,272) 183,010 0

4,357,241 10,662,060 19,210,780 27,271,181 30,260,342 11,510,767 10,950,602 11,192,665 11,778,990 12,102,521 15,868,008 21,612,662 30,403,445 39,050,171 42,362,863




2,892,825 4,447,404 8,804,250 13,885,560 17,588,376 3,317,001 5,911,055 8,067,210 8,529,162 6,363,772 2,017,987 5,754,537 12,043,361 19,390,528 24,728,089

2,374,632 2,726,802 3,514,657 6,190,142 10,836,774 664,689 3,736,550 6,288,824 7,347,166 5,337,561

1,589,947 3,317,001 5,911,055 8,067,210 8,529,162 0 350,000 0 0 350,000

20,368 46,959 107,529 189,913 266,550 433,924 667,111 1,320,638 2,082,834 2,638,256 454,501 454,501 454,501 454,501 454,501

0 0 0 0 535,952 540,582 1,127,780 2,009,759 2,742,851 2,899,915

0 500,000 0 0 500,000 3,039,321 6,463,352 9,803,481 13,537,309 16,174,335

0 0 0 0 0

750,000 750,000 750,000 750,000 750,000 750,000 750,000 750,000 750,000 750,000




2,773,349 3,291,542 5,012,144 10,301,737 17,997,155 2,892,825 4,447,404 8,804,250 13,885,560 17,588,376 1,046,448 1,157,130 1,778,962 3,521,700 5,554,224 1,328,184 1,569,672 1,735,695 2,668,442 5,282,550 3,291,542 5,012,144 10,301,737 17,997,155 24,748,757

1,452,010 3,177,581 6,938,680 10,526,916 11,565,271 3,317,001 5,911,055 8,067,210 8,529,162 6,363,772

540,582 1,127,780 2,009,759 2,742,851 2,899,915 2,132,012 3,277,737 6,488,732 10,233,658 12,962,633 3,177,581 6,938,680 10,526,916 11,565,271 7,866,326

758,428 2,485,482 5,079,536 7,235,691 7,697,643 3,317,001 5,911,055 8,067,210 8,529,162 6,363,772 1,589,947 3,317,001 5,911,055 8,067,210 8,529,162 2,485,482 5,079,536 7,235,691 7,697,643 5,532,254

11,673,244 11,510,767 10,950,602 11,192,665 11,778,990

Purchasesm = (Salesm+ 2 x(PS

) x . 65) + (Salesm+ 2 x(PS

) x . 35 x . 05) + (Salesm x (PS

)x .35 x . 95 )


(162,477) (60,165) 242,063 586,325 823,531 0 500,000 0 0 500,000

11,510,767 10,950,602 11,192,665 11,778,990 12,102,521

(76,596) (146,229) (172,014) (68,272) 183,010 (69,633) (25,785) 103,741 251,282 352,942

0 0 0 0 535,952 (146,229) (172,014) (68,272) 183,010 0

10,095,646 10,095,646 10,445,646 10,445,646 10,445,646 0 350,000 0 0 350,000

10,095,646 10,445,646 10,445,646 10,445,646 10,795,646 84,130 87,047 87,047 87,047 89,964

1,446,761 1,533,808 1,620,855 1,707,902 1,797,866 8,648,885 8,911,838 8,824,791 8,737,744 8,997,780

2,017,987 5,754,537 12,043,361 19,390,528 24,728,089 2,017,987 5,754,537 12,043,361 19,390,528 24,728,089

0 0 0 0 0

April May June July August8,804,250 13,885,560 17,588,376 16,315,533 8,572,824

242,063 586,325 823,531 715,757 155,430

750,000 750,000 750,000 750,000 750,000 10,301,737 17,997,155 24,748,757 25,697,604 17,191,189 10,526,916 11,565,271 7,866,326 2,836,169 1,360,948 21,578,653 30,312,426 33,365,083 29,283,773 19,302,136 8,824,791 8,737,744 8,997,780 8,907,817 8,817,853

30,403,445 39,050,171 42,362,863 38,191,590 28,119,989

7,235,691 7,697,643 5,532,254 3,999,190 2,368,990

12,043,361 19,390,528 24,728,089 21,067,369 12,403,927 (68,272) 183,010 0 306,753 373,366

19,210,780 27,271,181 30,260,342 25,373,312 15,146,282 11,192,665 11,778,990 12,102,521 12,818,278 12,973,707 30,403,445 39,050,171 42,362,863 38,191,590 28,119,989

6,938,680 10,526,916 11,565,271 7,866,326 2,836,169 8,067,210 8,529,162 6,363,772 4,830,709 3,200,508 2,009,759 2,742,851 2,899,915 2,163,683 1,642,441 6,488,732 10,233,658 12,962,633 12,024,548 6,318,171

10,526,916 11,565,271 7,866,326 2,836,169 1,360,948

July August September October November16,315,533 8,572,824 5,031,000 4,447,404 3,531,762 2,836,169 1,360,948 957,916 263,009 176,466

21,067,369 12,403,927 5,990,806 2,980,827 1,646,578

July August September October November

16,315,533 8,572,824 5,031,000 4,447,404 3,531,762 2,447,330 1,285,924 754,650 667,111 529,764

13,868,203 7,286,900 4,276,350 3,780,293 3,001,998 12,024,548 6,318,171 3,707,847 3,277,737 2,602,909 1,843,655 968,729 568,503 502,557 399,089

454,501 454,501 454,501 454,501 454,501 89,964 89,964 92,880 92,880 92,880

276,681 202,222 111,135 54,204 27,957 1,022,510 222,042 (90,013) (99,028) (176,249)

306,753 66,613 (27,004) (29,708) (52,875)715,757 155,430 (63,009) (69,320) (123,374)


750,000 750,000 750,000 750,000 750,000 25,697,604 17,191,189 9,003,739 6,295,049 5,029,249 2,836,169 1,360,948 957,916 263,009 176,466

29,283,773 19,302,136 10,711,655 7,308,058 5,955,716 8,907,817 8,817,853 9,074,973 8,982,092 8,889,212

38,191,590 28,119,989 19,786,628 16,290,151 14,844,928

3,999,190 2,368,990 1,385,123 997,653 1,062,928 21,067,369 12,403,927 5,990,806 2,980,827 1,646,578

306,753 373,366 0 (29,708) (82,583)25,373,312 15,146,282 7,375,929 3,948,772 2,626,923 12,818,278 12,973,707 12,410,698 12,341,379 12,218,005 38,191,590 28,119,989 19,786,628 16,290,151 14,844,928


16,315,533 8,572,824 5,031,000 4,447,404 3,531,762 4,830,709 3,200,508 2,216,642 1,829,172 1,894,447

21,067,369 12,403,927 5,990,806 2,980,827 1,646,578

15,366,686 17,079,239 13,218,449 7,156,094 4,797,562 (3,660,720) (8,663,442) (6,413,121) (3,009,979) (1,334,249)

6,363,772 4,830,709 3,200,508 2,216,642 1,829,172 0 0 350,000 0 0

276,681 202,222 111,135 54,204 27,957 2,447,330 1,285,924 754,650 667,111 529,764

454,501 454,501 454,501 454,501 454,501 0 0 346,362 0 0

2,163,683 1,642,441 1,088,173 753,658 621,919 0 0 500,000 0 0

11,705,966 8,415,797 6,805,329 4,146,115 3,463,313

0 0 0 0 0

750,000 750,000 750,000 750,000 750,000 750,000 750,000 750,000 750,000 750,000


24,748,757 25,697,604 17,191,189 9,003,739 6,295,049 16,315,533 8,572,824 5,031,000 4,447,404 3,531,762 7,035,350 6,526,213 3,429,130 2,012,400 1,778,962 8,331,336 10,553,026 9,789,320 5,143,694 3,018,600

25,697,604 17,191,189 9,003,739 6,295,049 5,029,249

7,866,326 2,836,169 1,360,948 957,916 263,009 4,830,709 3,200,508 2,216,642 1,829,172 1,894,447 2,163,683 1,642,441 1,088,173 753,658 621,919

12,024,548 6,318,171 3,707,847 3,277,737 2,602,909 2,836,169 1,360,948 957,916 263,009 176,466

5,532,254 3,999,190 2,368,990 1,385,123 997,653 4,830,709 3,200,508 2,216,642 1,829,172 1,894,447 6,363,772 4,830,709 3,200,508 2,216,642 1,829,172 3,999,190 2,368,990 1,385,123 997,653 1,062,928

12,102,521 12,818,278 12,973,707 12,410,698 12,341,379

715,757 155,430 (63,009) (69,320) (123,374)0 0 500,000 0 0

12,818,278 12,973,707 12,410,698 12,341,379 12,218,005

0 306,753 373,366 0 (29,708)306,753 66,613 (27,004) (29,708) (52,875)

0 0 346,362 0 0 306,753 373,366 0 (29,708) (82,583)

10,795,646 10,795,646 10,795,646 11,145,646 11,145,646 0 0 350,000 0 0

10,795,646 10,795,646 11,145,646 11,145,646 11,145,646 89,964 89,964 92,880 92,880 92,880

1,887,829 1,977,793 2,070,673 2,163,554 2,256,434 8,907,817 8,817,853 9,074,973 8,982,092 8,889,212

21,067,369 12,403,927 5,990,806 2,980,827 1,646,578 21,067,369 12,403,927 5,990,806 2,980,827 1,646,578

0 0 0 0 0

September October November December 5,031,000 4,447,404 3,531,762 2,767,050

(63,009) (69,320) (123,374) (181,100)

750,000 750,000 750,000 750,000 9,003,739 6,295,049 5,029,249 3,715,152

957,916 263,009 176,466 614,822 10,711,655 7,308,058 5,955,716 5,079,974 9,074,973 8,982,092 8,889,212 9,143,415

19,786,628 16,290,151 14,844,928 14,223,389

1,385,123 997,653 1,062,928 1,002,041 5,990,806 2,980,827 1,646,578 1,844,640

0 (29,708) (82,583) (160,197)7,375,929 3,948,772 2,626,923 2,686,484

12,410,698 12,341,379 12,218,005 11,536,905 19,786,628 16,290,151 14,844,928 14,223,389

1,360,948 957,916 263,009 176,466 2,216,642 1,829,172 1,894,447 1,833,560 1,088,173 753,658 621,919 644,112 3,707,847 3,277,737 2,602,909 2,039,316

957,916 263,009 176,466 614,822

December The Year2,767,050 90,900,108

614,822 1,844,640

December The Year

2,767,050 90,900,108 415,058 13,635,016

2,351,993 77,265,092 2,039,316 66,993,380

312,677 10,271,712 454,501 5,454,006 95,797 1,073,731 21,093 11,145

(258,714) 2,407,054 (77,614) 722,116

(181,100) 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 February

2,767,050 3,400,956 3,616,031 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

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)

11,145,646 127,447,752 350,000 1,400,000

11,495,646 128,847,752 95,797 1,073,731

2,352,231 23,456,837 9,143,415 106,669,415

1,844,640 1,844,640

0

LEVEL PRODUCTION PLAN

January February March

Sales as percentage of year 2.88% 3.18% 4.89%Production as percentage of year 8.33% 8.33% 8.33%

Total sales through July 73.21%Total production through July 58.33%

April May June July August September October

9.69% 15.28% 19.35% 17.95% 9.43% 5.53% 4.89%8.33% 8.33% 8.33% 8.33% 8.33% 8.33% 8.33%

November December

3.89% 3.04%8.33% 8.33%

Exhibit 2SENGUPTA FIBRES, LTD.

Historical Annual Income Statements(In Rupees)

1999 2000 2001 (Actual) (Actual) (Forecast)

Gross Sales 64,487,358 75,867,480 90,900,108 Excise Tax 9,673,104 11,380,122 13,635,016 Net Sales 54,814,254 64,487,358 77,265,092 Cost of Goods 44,496,277 53,865,911 66,993,380 Gross Profits 10,317,977 10,621,447 10,271,712 Operating Expenses 3,497,305 4,828,721 5,454,006 Depreciation 769,103 908,608 1,073,731 Interest Expense 910,048 1,240,066 1,835,620 Profit Before Tax 5,141,521 3,644,052 1,908,354 Income Tax 1,542,456 1,093,216 572,506 Net Profit 3,599,065 2,550,836 1,335,848

A B C D E F G H

183

184

185

186

187

188

189

190

191

192

193

194

195

196

197

198

199

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

Sales as % of base case Peak Debt End Debt

100 32,950,665 3,463,701 95 31,216,310 3,280,920 90 29,481,954 3,098,139 85 27,747,599 2,915,358 80 26,013,244 2,732,577 75 24,278,889 2,549,796

Operating expenses as

a % of sales Peak Debt End Debt

6.0% 32,950,665 3,463,701 5.0% 32,621,294 2,714,270 4.0% 32,291,923 1,964,839 3.0% 31,963,281 1,260,586 2.0% 31,635,709 588,325 1.0% 31,308,137 (83,937)

Wages as a percentage

of purchases Peak Debt End Debt

34.0% 32,950,665 3,463,701 33.0% 32,675,829 3,063,969 32.0% 32,400,993 2,664,236 31.0% 32,126,157 2,264,503 30.0% 31,851,322 1,864,771 29.0% 31,576,486 1,465,038 28.0% 31,301,650 1,065,305 27.0% 31,026,814 665,573 26.0% 30,751,978 265,840

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

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