ASSESSMENT OF WORKING CAPITAL REQUIREMENTS

FORM # II : OPERATING STATEMENT (Rs. in Lakhs) 2006-07 2007-08 2008-09 2009-10 2010-11

S.No Particulars Audited Audited Audited Current NextActuals Actuals Actuals Year Year

Estimates Projections1. GROSS SALES

(i) Sales 490.74 567.09 766.63 843.90 1265.85 (ii) Other Income 119.39 175.01 201.77 236.94 355.41 Total 610.13 742.10 968.40 1080.84 1621.26

2. (III) Excise Duty 53.81 73.29 69.63 52.96 79.443. NET SALES ( 1 - 2 ) 556.32 668.81 898.77 1027.88 1541.824. % age rise ( + ) or fall ( - ) in Net Sales as 0.00 0.00 0.00 0.00 0.00

compared to previous year5. COST OF SALES

(i) Raw Materials ( including Stores and other used in the process of manufacture (a) Imported 0.00 0.00 0.00 0.00 0.00 (b) Indigenous 302.81 340.34 534.04 572.00 858.00(ii) Other Spares (a) Imported 0.00 0.00 0.00 0.00 0.00 (b) Indigenous 13.14 18.28 35.37 33.20 49.80(iii) Power and Fuel 47.64 53.96 54.52 35.00 52.50(iv) Direct Labour 15.74 15.86 17.80 22.00 33.00(v) Repairs & Maintainence 61.05 61.95 71.80 136.00 204.00(vi) Depreciation 18.59 18.31 19.56 20.00 30.00(vii) SUB - TOTAL ( Items (i) to (vi) 458.97 508.70 733.09 818.20 1227.30(viii) Add : Opening Stock-in-Process 11.40 12.74 11.45 5.18 0.58

Sub-Total 470.37 521.44 744.54 823.38 1227.88(ix) Deduct : Closing Stock-in-Process 12.74 11.45 5.18 0.58 0.00(x) COST OF PRODUCTION 457.63 509.99 739.36 822.80 1227.88

Form # II Operating Statement Cont…. (Rs. in Lakhs)S.No Particulars 2006-07 2007-08 2008-09 2009-10 2010-11

Audited Audited Audited Current Next Actuals Actuals Actuals Year Year Estimates Projections(ix) Add: Opening Stocks of WIP & Finished Goods 11.82 40.22 30.09 34.07 46.84Sub-Total 469.45 550.21 769.45 856.87 1274.72(xii) Deduct: Closing Stocks of WIP & Finished Goods 40.22 30.09 34.07 46.84 55.24(xiii) Sub - Total ( Total of Cost of Sales ) 429.23 520.12 735.38 810.03 1219.48

6. Selling, General & Administrative Expenses 76.89 86.27 94.14 120.00 180.00Salaries and Allowances 0.00 0.00 0.00 0.00 0.00

7. SUB - TOTAL ( 5 + 6 ) 506.12 606.39 829.52 930.03 1399.488. Operating Profit before Interest ( 3 - 7 ) 50.20 62.42 69.25 97.85 142.349. Interest 21.36 24.81 27.86 40.00 50.0010. Operating Profit after Interest ( 8 - 9 ) 28.84 37.61 41.39 57.85 92.3411. (i) Add Other Non-Operating Income

a) Other Income 1.10 0.09 8.83 0.20 0.30Sub - Total ( Income ) 1.10 0.09 8.83 0.20 0.30(ii) Deduct Other Non-Operating Expences a) Preliminary Expenses Written Off 0.00 0.00 0.00 0.00 0.00 b) Others 0.00 0.00 0.00 0.00 0.00

Sub - Total ( Expenses ) 0.00 0.00 0.00 0.00 0.00(iii) Net of other Non-Operating Income/Expenses 1.10 0.09 8.83 0.20 0.30

12. Profit before Tax / ( Loss ) 10 + 11(iii) 29.94 37.70 50.22 58.05 92.6413. Provision for Taxes & deffered tax liabity 11.24 13.07 16.28 19.73 31.4914. Net Profit / ( Loss ) { 12 -13 } 18.70 24.63 33.94 38.32 61.1515. (a) Equity Dividend Paid including Dividend tax 8.53 8.75 8.75 8.75 8.75

(b) Dividend Rate 0.00 0.00 0.00 0.00 0.0016. Retained Profit ( 14 - 15 ) 10.17 15.88 25.19 29.57 52.4017. Retained Profit / Net Profit ( % age ) 54.39 64.47 74.22 77.17 85.69

###FORM # III ANALYSIS OF BALANCE SHEET (Rs. in Lakhs)S.No Particulars 2006-07 2007-08 2008-09 2009-10 2010-11

Audited Audited Audited Current Next Actuals Actuals Actuals Year Year Estimates ProjectionsC U R E N T L I A B I L I T I E S

1. Short Term Borrowings from Banks ( excluding Bills Purchased Discounted (i) From Applicant Bank 152.62 164.03 171.33 200.00 300.00(ii) From Other Banks 0.00 0.00 0.00 0.00 0.00(iii) ( of which Bills Purchased & Discounted ) 0.00 0.00 0.00 0.00 0.00SUB - TOTAL ( A ) 152.62 164.03 171.33 200.00 300.00

2. Short Term Borrowings from others 0.00 0.00 0.00 0.00 0.003. Sundry Creditors ( Trade ) 57.97 91.73 98.48 23.80 35.804. Advance Payments from Customers / 0.00 10.81 0.26 0.50 1.00

Deposits from Dealers 0.00 0.00 0.00 0.00 0.005. Provision for Taxation(Including dividend tax) 13.29 15.89 18.89 21.47 33.236. Dividend Payable / Proposed Dividend 7.48 7.48 7.48 7.48 7.487. Other Statutory Liabilities ( due within one year ) 0.81 1.25 1.25 9.60 9.608. Deposits / Installments of Term Loan / DPG's / 0.00 0.00 0.00 0.00 0.00

Debentures, etc. ( due within one year ) 0.00 0.00 0.00 0.00 0.009. Other Current Liabilities & Provisions

Liabilities for capital goods 0.00 0.00 0.00 0.00 0.00 Liabilities for expenses 60.53 81.75 165.47 100.00 110.00 Others 0.00 0.00 0.00 0.00 0.00SUB - TOTAL ( B ) 140.08 208.91 291.83 162.85 197.11

10. TOTAL CURRENT LIABILITIES 292.70 372.94 463.16 362.85 497.11( Total of Items # 1 to 9 )

FORM # III ANALYSIS OF BALANCE SHEET(Rs. in Lakhs)

S.No Particulars 2006-07 2007-08 2008-09 2009-10 2010-11 Audited Audited Audited Current Next Actuals Actuals Actuals Year Year Estimates ProjectionsT E R M L I A B I L I T I E S

11. Debentures ( not maturing within one year ) 0.00 0.00 0.00 0.00 0.0012. Preference Shares 0.00 0.00 0.00 0.00 0.00

( Redeemable after one year )13. Term Loans ( excluding installments payable

within one year ) 21.56 10.67 137.17 120.00 200.0014. Hire Purchase Loan ( excluding

installments due within one year ) 0.00 0.00 0.00 0.00 0.0015. Term Deposits ( Repayable after one year ) 0.00 0.00 0.00 0.00 0.0016. Other Term Liabilities

Liabilities for Capital Goods 0.00 0.00 0.00 0.00 0.00Unsecured Loans from shareholders 0.00 0.00 0.00 0.00 0.00Unsecured Loans from Others 0.00 0.00 0.00 10.00 0.00

17. TOTAL TERM LIABILITIES( Total of Items # 11 to 16 ) 21.56 10.67 137.17 130.00 200.00

18. TOTAL OUTSIDE LIABILITIES 314.26 383.61 600.33 492.85 697.11(Item 10 plus item 17)N E T W O R T H

19. Ordinary Share Capital 74.81 74.81 74.81 74.81 74.8120. General Reserve 14.61 16.92 20.32 23.72 27.1221. Revaluation Reserve 0.00 0.00 0.00 0.00 0.0022. Sales Tax Subsidy 0.00 0.00 0.00 0.00 0.00

Deffered Tax Liability 0.00 0.00 0.00 0.00 0.0023. Surplus (+) or Deficit (-) in profit and loss Account 35.18 48.75 70.54 96.71 145.7124. N E T W O R T H 124.60 140.48 165.67 195.24 247.6425. T O T A L I A B I L I T I E S 438.86 524.09 766.00 688.09 944.75

( Total Items # 18 + 24 )

FORM # III ANALYSIS OF BALANCE SHEET (Rs. in Lakhs)S.No Particulars 2006-07 2007-08 2008-09 2009-10 2010-11

Audited Audited Audited Current NextActuals Actuals Actuals Year Year

Estimates Projections C U R R E N T A S S E T S

26. Cash and Bank Balances 0.58 0.60 0.32 1.14 1.3127. Investments ( other than Long Term Investments)

i) Government 0.00 0.00 0.00 0.00 0.00ii) Fixed deposits with Banks 0.00 0.00 0.00 0.00 0.00

28. i) Receivables other than deferred & Bills purchased and Discounted by Banks 130.91 181.87 182.40 180.10 270.20ii) Export receivables ( including Bills Purchased Discounted by Banks ) 0.00 0.00 0.00 0.00 0.00

29. Installments of deferred Receivables ( due within one year ) 0.00 0.00 0.00 0.00 0.00

30. Inventory :i) Raw Materials ( including Stores and other items used in the process of manufacture ) a) Imported 0.00 0.00 b) Indigenous 25.18 27.39 20.83 47.70 71.50ii) Stocks-in-Process 12.74 11.45 5.18 55.20 82.80iii) Finished Goods 40.22 30.09 34.07 44.10 61.10iv) Other Consumable Spares a) Imported 0.00 0.00 0.00 0.00 0.00 b) Indigenous 0.00 0.00 0.00 0.00 0.00 c) Other C/A 0.00 0.00 0.00 0.00 0.00

31. Advances to Suppliers of Raw Materialsand Stores and for Job work 46.04 25.83 32.92 40.00 50.00

32. Advance Payment of Taxes 6.00 8.00 5.50 10.00 15.0033. Other Current Assets

a) Margins for L.C's and guarantees 0.00 0.00 0.00 0.00 0.00b) Loans and Advances 32.62 17.84 39.54 70.00 80.00

34. T O T A L C U R R E N T A S S E T S( Total of Items # 26 to 33 ) 294.29 303.07 320.76 448.24 631.90

FORM # III ANALYSIS OF BALANCE SHEET (Rs. in Lakhs)S.No Particulars 2006-07 2007-08 2008-09 2009-10 2010-11

Audited Audited Audited Current NextF I X E D A S S E T S Actuals Actuals Actuals Year Year

Estimates Projections35. Gross Block

( Land, Building & Machinery, Work-in-Progress ) 216.52 233.75 261.10 261.10 401.1036. Depreciation to date 87.32 105.63 125.19 145.19 175.1937. NET BLOCK ( Item # 35 - Item # 36 ) 129.20 128.12 135.91 115.91 225.9138. Investment / Book Debts / Advances / Deposits

which are not Current AssetsI) a) Investments in Subsidiary Companies / Affiliates 0.00 0.00 0.00 0.00 0.00 b) Others 0.00 0.00 0.00 0.00 0.00II) Advances to Suppliers of Capital Goods and Contract - Capital work in progress 0.00 64.54 269.41 80.00 43.00III) Deferred tax asset 9.07 10.61 11.94 11.94 11.94

IV) Others - Deposits 6.30 17.75 27.98 32.00 32.00 FD with Bank 0.00 0.00 0.00 0.00 0.00

39. Non-Consumable Stores and Spares 0.00 0.00 0.00 0.00 0.0040. Other Non-Current Assets including 0.00 0.00 0.00 0.00 0.00

due from Directors41. TOTAL OTHER NON - CURRENT ASSETS 15.37 92.90 309.33 123.94 86.9442. Intangible Assets ( Patents, Goodwill,

Preliminary Expenses, Doubtful Debts not 0.00 0.00 0.00 0.00 0.00provided for & deposits etc. )

43. TOTAL ASSETS ( Total of Items # 34,37,41& 42) 438.86 524.09 766.00 688.09 944.7544. TANGIBLE NET WORTH ( Items # 24 - 42 ) 124.60 140.48 165.67 195.24 247.6445. NET WORKING CAPITAL

( Items # [ ( 17 + 24 ) - ( 37+ 41 + 42 ) ] 1.59 -69.87 -142.40 85.39 134.7946. CURRENT RATIO { Item # 34 / 10 } 1.01 0.81 0.69 1.24 1.2747. TOTAL OUTSIDE LIABILITIES

TANGIBLE NET WORTH { Items # 18 / 44 ) 2.52 2.73 3.62 2.52 2.8248. Total Term Liabilities / Tangible Net Worth 0.17 0.08 0.83 0.67 0.81

FORM # IV COMPARATIVE STATEMENT OF CURRENT ASSETS (Rs. in Lakhs)S.No Particulars 2006-07 2007-08 2008-09 2009-10 2010-11

Audited Audited Audited Current NextActuals Actuals Actuals Year Year

Estimates ProjectionsA C U R R E N T A S S E T S1. Raw Materials ( Including Stores & Other

Items used in the Process of Manufacture )(a) Imported : 0.00 0.00 0.00 0.00 0.00 Months' Consumption (b) Indigenous : 25.18 27.39 20.83 47.70 71.50 Months' Consumption (1.00) (0.97) (0.47) (1.00) (1.00)

2. Other Consumable Spares, ( excluding thoseincluded in 1 above )(a) Imported : 0.00 0.00 0.00 0.00 0.00 Months' Consumption (b) Indigenous : 0.00 0.00 0.00 0.00 0.00 Months' Consumption 0.00 0.00 0.00 0.00 0.00

3. Stock-in-Process 12.74 11.45 5.18 55.20 82.80Months Cost of Production 0.00 0.00 0.08 0.81 0.81

4. Finished Goods 40.22 30.09 34.07 44.10 61.10Months Cost of Sales (1.12) (0.69) (0.56) (0.65) (0.60)

5. Receivables other that Export deferred rec'bles( including purchased and discounted by Banks) 130.91 181.87 182.40 180.10 270.20Months Domestic Sales (3.20) (3.85) (2.86) (2.56) (2.56)

6. Export Receivables ( Including Bills Purchased & Disctd) 0.00 0.00 0.00 0.00 0.00 Months' Export Sales

7. Advances to Suppliers of Raw Materials,Stores and Consumables 46.04 25.83 32.92 40.00 50.00

8. Other Current Assets including Cash and Bankbalances, Deposits, Advance payment of Taxes 39.20 26.44 45.36 81.14 96.31and Margins for LC's and guarantees.

9. Total Current Assets( To Agree with Item # 34 in Form # 3 ) 294.29 303.07 320.76 448.24 631.91

294.29 303.07 320.76 448.24 631.90

FORM # IV COMPARITIVE STATEMENT OF CURRENT LIABILITIES (Rs. in Lakhs)S.No Particulars 2006-07 2007-08 2008-09 2009-10 2010-11

Audited Audited Audited Current NextActuals Actuals Actuals Year Year

Estimates ProjectionsB. CURRENT LIABILITIES

( Other than Bank Borrowings for working capital)10. Creditors for Purchases of Raw Materials,

Stores and Spares 57.97 91.73 98.48 23.80 35.80 0.00 0.00 0.00 0.00 0.00

11. Advances from Customers 0.00 10.81 0.26 0.50 1.0012. Statutory Liabilities 13.29 15.89 18.89 21.47 33.2313. Other Current Liabilities 68.82 90.48 174.20 117.08 127.08

Other Provisions 0.00 0.00 0.00 0.00 0.00Installments of Term loans

14. T O T A L 140.08 208.91 291.83 162.85 197.11

Computation Of Maximum Permissible Bank Finance for Working Capital (Rs. in Lakhs)S.No Particulars 2006-07 2007-08 2008-09 2009-10 2010-11

Audited Audited Audited Current NextActuals Actuals Actuals Year Year

Estimates Projections1. Total Current Assets

( Item # 9 in Form # IV ) 294.29 303.07 320.76 448.24 631.912. Other Current Liabilities 140.08 208.91 291.83 162.85 197.11

( Other than Bank Borrowings )( Item # 14 in Form IV )

3. Working Capital Gap ( WCG ) 154.21 94.16 28.93 285.39 434.80( Item # 1 - Item # 2 )

4. Minimum stipulated Net Working Capital ie 25% of WCG / 25% of Total Current Assets as to casemay be depending upon the method of lending being 38.55 23.54 7.23 71.35 108.70

applied ( Export Receivables to be excluded underboth methods )

5. Actual / Projected net working Capital 1.59 -69.87 -142.40 85.39 134.79( Item # 45 in Form # III )

6. Item # 3 Minus Item # 4 115.66 70.62 21.70 214.04 326.107. Item # 3 Minus Item # 5 152.62 164.03 171.33 200.00 300.008. MAXIMUM PERMISSIBLE BANK FINANCE 115.66 70.62 21.70 200.00 300.00

( Item # 6 or Item # 7 whichever is lower )9 NWC TO TCA ( % ) 0.54 -23.05 -44.39 19.05 21.3310 Bank Finance to TCA ( % ) 39.30 23.30 6.76 44.62 47.4811 Sundry Creditors to TCA ( % ) 19.70 30.27 30.70 5.31 5.6712 Other Current Liabilities to TCA ( % ) 23.39 29.85 54.31 26.12 20.1113 Inventories to Net Sales ( days ) 51.27 37.62 24.40 52.20 50.9914 Receivables to Gross Sales ( days ) 97.37 117.06 86.84 77.90 77.9115 Sundry Creditors to Purchases ( days ) 69.88 98.38 67.31 15.19 15.23

FORM # VI

FUND FLOW STATEMENT1 S O U R C E S (Rs. in Lakhs)S.No Particulars 2006-07 2007-08 2008-09 2009-10 2010-11

Audited Audited Audited Current NextActuals Actuals Actuals Year Year

Estimates Projectionsa) Net Profit after Tax 15.88 25.19 29.57 52.40b) Depreciation 18.31 19.56 20.00 30.00c) Increase in Capital 0.00 0.00 0.00 0.00 Increase in Deffered tax liability 0.00 0.00 0.00 0.00d) B/F reserves 0.00 0.00 0.00 0.00e) Increase in Term Liabilities -10.89 126.50 -7.17 70.00e) Decrease in i) Fixed Assets ( Depreciation to date ) 0.00 0.00 0.00 0.00 ii) Other Non-Current Assets 0.00 0.00 0.00 0.00

g) Total 23.30 171.25 42.40 152.40

2 U S E S (Rs. in Lakhs)Particulars 2006-07 2007-08 2008-09 2009-10 2010-11

Audited Audited Audited Current NextActuals Actuals Actuals Year Year

Estimates Projectionsa) Net Loss 0.00 0.00 0.00 0.00b) Decrease in Term Liabilities 0.00 0.00 0.00 0.00 Decrease in unsecured loans 0.00 0.00 0.00 0.00c) Increase in i) Fixed Assets 17.23 27.35 0.00 140.00 ii) Non current assets 77.53 216.43 -185.39 -37.00d) Dividend Payments 0.00 0.00 0.00 0.00e) Decrease in liability for capital goods 0.00 0.00 0.00 0.00g) TOTAL 94.76 243.78 -185.39 103.00

a) Long Term Surplus ( + ) / Deficit ( - )b) ( Item # 1 Minus Item # 2 ) -71.46 -72.53 227.79 49.40c) Increase / Decrease in Current Assetsd) * ( as per details given below ) 8.78 17.69 127.48 183.66e) Increase or Decrease in Current Liabilitiesf) other than Bank Borrowings 68.83 82.92 -128.98 34.26g) Increase / Decrease in Working Capital Gap -60.05 -65.23 256.46 149.41h) Net Surplus ( + ) / Deficit ( - ) -11.41 -7.30 -28.67 -100.00I) Increase / Decrease in Bank Borrowings 11.41 7.30 28.67 100.00

INCREASE / DECREASE IN NET SALES 131.97 226.30 112.44 540.42

0.00 0.00 0.00 0.00 0.00