Kota Fibres Solution

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

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Copyright 2001 by the Trustees of the University of Virginia Darden School Foundation.
School Foundation.
BASE CASE
PONDICHERRY
Comparative Overview of Financial Results Asso

Base Case
Debt Balance Summary
Jan 01
1,146,269 Jan 01
June 01
32,950,665 June 01
Dec 01
3,463,702 Dec 01
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
PONDICHERRY
30 DAY INVENTORY
HIBACHI JIT
e Overview of Financial Results Associated with Various Proposals

Pondicherry
Inventory
Hibachi JIT
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
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
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
Sales
Summary of Sales and Credit Results

6,000,000
January
2.88%
172,681
172,681
Normal Cycle
Pondicherry Sales
Credit Outstanding
Avg Credit
Additional Profit
Return
February
3.18%
190,945
363,626
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 Disbursem 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
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
EXHIBIT 8 -contdKOTA FIBRES, LTD.

Forecasted Monthly Balance Sheets for 1990
(In Rupees)
January
February
Assets
Cash (1)
Accounts Receivable (2)
Inventories (3)
Total Current Assets
Net Prop. Plant & Equip. (4)
Total Assets
750,000
2,946,030
2,378,033
6,074,063
8,527,238
14,601,300
750,000
3,655,168
6,153,817
10,558,985
8,443,107
19,002,093
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
1,344,093
-79,725
2,935,358
11,665,942
14,601,300
4,225,425
3,439,517
-154,445
7,510,497
11,491,596
19,002,093
EXHIBIT 9
KOTA FIBRES, LTD.
Schedule of Cash Receipts and Disbursements
(In Rupees)
January
Assume:
Sales
Purchases (1)
Debt Outstanding
1,696,074
684,102
February
2,788,801
2,607,529
1,344,093
3,083,770
5,161,963
3,439,517
Receipts:
Accts Rcvble Collected

New Borrowings (Repayments)
2,515,500
659,990
2,374,632
2,095,424
Disburs.:
Accounts Paid (2)

Capital Expenditures
Interest Payments
Excise Tax Paid
Operating Expenses
Accrued Income Tax Paid
Wages
Dividends
1,696,074
0
12,254
418,320
484,501
0
576,665
0
2,607,529
0
28,901
462,566
484,501
0
886,560
0
Subtotal: Disbursements
Receipts - Disbursements
BOP Cash Balance

EOP Cash Balance
762,323
3,187,813
4,470,056
-12,323
762,323
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
(1) 40% of sales in period (T-1).
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
1,696,074
1,249,185
2,607,529
576,665
2,055,346
2,378,033
2,378,033
5,161,963
886,560
2,272,739
6,153,817
759,535
2,607,529
1,696,074
1,670,990
1,670,990
5,161,963
2,607,529
4,225,425
11,851,967
11,665,942

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
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
From Balance Sheet

From CR&D
DIFFERENCE
-186,025
0
11,665,942
-174,346
0
11,491,596
0
-79,725
0
-79,725
-79,725
-74,720
0
-154,445
10,095,646
0
10,095,646
84,130
1,568,408
8,527,238
10,095,646
0
10,095,646
84,130
1,652,539
8,443,107
1,344,093
1,344,093
0
3,439,517
3,439,517
0
March
4.89%
293,558
600,199
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
July
August
e Pondicherry proposal.
Pro Forma
March
April
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
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
May
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
June
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
March
April
May
June
July
August
750,000
5,554,207
12,555,950
18,860,157
8,706,060
27,566,217
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
7,204,615
9,639,288
-188,896
16,655,007
10,911,210
27,566,217
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
March
April
May
June
July
August
4,740,962
8,141,154
9,639,288
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
2,841,923
5,699,771
3,699,514
9,274,449
6,449,496
10,364,732
11,322,052
6,530,653
16,171,424
-5,946,073
18,158,716
-12,062,858
5,161,963
350,000
79,018
711,144
484,501
0
1,755,068
500,000
8,141,154
0
172,508
1,407,808
484,501
0
2,767,992
0
10,312,128
0
291,161
2,220,315
484,501
0
3,506,124
0
9,565,856
350,000
393,238
2,812,399
484,501
494,322
3,252,391
500,000
5,026,277
0
396,769
2,608,870
484,501
0
1,708,934
0
2,949,693
0
287,965
1,370,803
484,501
0
1,002,896
0
8,541,693
12,973,962
16,814,228
17,852,705
10,225,351
6,095,858
750,000
750,000
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
3,655,168
4,740,962
1,157,130
1,569,672
115,121
5,554,207
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
6,153,817
8,141,154
1,755,068
3,494,089
12,555,950
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
4,225,425
8,141,154
5,161,963
7,204,615
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
11,491,596
10,911,210
11,132,756
11,699,705
12,005,386
12,701,266
-80,386
500,000
10,911,210
221,545
0
11,132,756
566,950
0
11,699,705
805,680
500,000
12,005,386
695,880
0
12,701,266
119,169
0
12,820,435
-154,445
-34,451
0
-188,896
-188,896
94,948
0
-93,948
-93,948
242,978
0
149,031
149,031
345,292
494,322
0
0
298,234
0
298,234
298,234
51,073
0
349,307
10,095,646
350,000
10,445,646
87,047
1,739,586
8,706,060
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
9,639,288
9,639,288
0
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
September
5.53%
332,079
1,619,485
October
November December
4.89%
3.89%
3.04%
293,558
233,119
182,643
1,004,764
749,170
612,446
September
October
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
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
3,764,881
564,732
3,200,149
2,774,718
425,432
484,501
92,880
57,892
-209,841
-62,952
-146,889
December The Year

2,949,693
442,454
2,507,239
2,173,924
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
September
October
November
December
750,000
10,260,658
3,062,538
14,073,196
8,869,195
22,942,391
750,000
750,000
750,000
7,109,306 5,666,619 4,228,767
1,894,814 1,637,189 2,225,373
9,754,120 8,053,809 7,204,140
8,776,314 8,683,434 8,937,637
18,530,434 16,737,242 16,141,777
1,134,146
9,583,567
0
10,717,713
12,224,678
22,942,391
685,793 1,028,962 1,157,298

5,754,282 3,827,762 3,897,616
-40,296
-103,248
-191,345
6,399,780 4,753,476 4,863,570
12,130,655 11,983,766 11,278,207
18,530,434 16,737,242 16,141,777
September
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
October
4,740,962
1,622,331
5,754,282
November
December
3,764,881
1,965,500
3,827,762
2,949,693
2,093,837
3,897,616
7,892,313 5,207,568
-3,829,285 -1,926,520
4,387,545
69,854
2,070,685
0
92,666
711,144
484,501
0
704,033
0
1,622,331
0
57,892
564,732
484,501
0
551,593
0
1,965,500
350,000
46,674
442,454
484,501
0
668,270
500,000
January
3,573,637
February
3,806,977
6,106,763
4,063,029
3,281,048
4,457,399
750,000
750,000
750,000
750,000
750,000
750,000
750,000
750,000
September
October
November
December
19,220,965
5,363,079
3,429,130
9,789,320
1,104,937
10,260,658
10,260,658
4,740,962
2,012,400
5,143,694
736,219
7,109,306
7,109,306
3,764,881
1,778,962
3,018,600
410,007
5,666,619
5,666,619
2,949,693
1,412,705
2,668,442
306,398
4,228,767
4,057,883
2,070,685
886,560
3,952,589
3,062,538
3,062,538
1,622,331
704,033
3,494,089
1,894,814
1,894,814
1,965,500
551,593
2,774,718
1,637,189
1,637,189
2,093,837
668,270
2,173,924
2,225,373
1,670,990
2,070,685
2,607,529
1,134,146
1,134,146
1,622,331
2,070,685
685,793
685,793
1,965,500
1,622,331
1,028,962
1,028,962
2,093,837
1,965,500
1,157,298
12,820,435
12,224,678 12,130,655 11,983,766
-95,758
500,000
12,224,678
349,307
-41,039
308,268
0
10,795,646
350,000
11,145,646
92,880
2,276,451
8,869,195
9,583,567
9,583,567
0
-94,023
-146,889
-205,559
0
0
500,000
12,130,655 11,983,766 11,278,207
0
-40,296
0
-40,296
-40,296
-62,952
0
-103,248
-103,248
-88,097
0
-191,345
11,145,646 11,145,646 11,145,646

0
0
350,000
11,145,646 11,145,646 11,495,646
92,880
92,880
95,797
2,369,332 2,462,212 2,558,009
8,776,314 8,683,434 8,937,637
5,754,282
5,754,282
0
3,827,762
3,827,762
0
3,897,616
3,897,616
0
###
1,400,000
###
1,073,731
24,647,673
###
Sales
A/R
Inv
A/P
n/p
January
2,788,801
2,946,030
2,378,033
1,670,990
1,344,093
February
March
3,083,770 4,740,962
3,655,168 5,554,207
6,153,817 12,555,950
4,225,425 7,204,615
3,439,517 9,639,288
April
9,385,388
11,240,081
18,719,039
9,375,589
18,913,736
INVENTORY REDUCTION TO 30 DAYS

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
Gross Sales
Inventories (3)
Below are the basic forecast exhibits, adjusted to reflect the inventory policy proposal.
Exhibit
Location
A20
A40
Exhibit 9 Schedule of Cash Receipts and Disbursements
A61
A92
EXHIBIT 8
KOTA FIBRES, LTD.
(In Rupees)
January
Gross Sales
Excise Taxes
Net Sales
Cost of Goods Sold
Gross Profit
Operating Expenses
Depreciation
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.

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
(In Rupees)
January
February
Assets
Cash (1)
Inventories (3)
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

Accrued Taxes (7)
911,723
1,200,185
-76,318
2,035,590
11,673,891
13,709,481
1,766,741
2,156,979
-145,925
3,777,794
11,511,474
15,289,269
EXHIBIT 9
KOTA FIBRES, LTD.
(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:

2,515,500
310,304
2,374,632
956,793
Disburs.:
Accounts Paid (2)

Interest Payments
Excise Tax Paid
Operating Expenses
Wages
Dividends
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
-12,323
BOP Cash Balance

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

Exhibit 10
KOTA FIBRES, LTD.
(In Rupees)
January
Beginning of Period
2,672,729
Plus Sales
2,616,120
885,456
1,630,044
End of Period
2,773,349
Beginning of Period
Plus Purchases (1)
Plus Labor
End of Period

Beginning of Period
+ Purchases (1)
- Payments (2)
End of Period
February
2,773,349
2,892,825
1,046,448
1,328,184
3,291,542
To adjust the spreadsheet for the new

inventory policy, simply change the
purchasing from two months ahead to one
month ahead.
1,438,866
In addi
that wa
purcha
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
11,851,967
-178,076
0
11,673,891
11,673,891
-162,417
0
11,511,474


Beginning of Period
Plus Net Profit
Less Dividends
End of Period

Beginning of Period
End of Period
0
-76,318
0
-76,318
-76,318
-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
Gross sales
Net profit
January
2,616,120
-178,076
February
2,892,825
-162,417
March
4,447,404
-59,849
Assets
Cash (1)
Inventories (3)
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
750,000
5,012,144
5,809,837
11,571,981
8,911,838
20,483,819

Accrued Taxes (7)
911,723
1,200,185
-76,318
2,035,590
11,673,891
13,709,481
1,766,741
2,156,979
-145,925
3,777,794
11,511,474
15,289,269
4,163,007
5,540,762
-171,575
9,532,193
10,951,626
20,483,819

Ending Gross PP&E
10,095,646
1,278,500
Ending Net PP&E
8,817,146
From Balance Sheet

From CR&D
DIFFERENCE
Exhibit TN3
Schedule of Inventories
Beginning of Period
Plus Purchases (1)
Plus Labor
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
Pro Forma
March
April
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
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
May
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
June
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
July
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
August
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
-1,590,457
17,079,239
-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
March
3,291,542
4,447,404
1,157,130
1,569,672
5,012,144
750,000
750,000
April
5,012,144
8,804,250
1,778,962
1,735,695
10,301,737
750,000
750,000
May
10,301,737
13,885,560
3,521,700
2,668,442
17,997,155
750,000
750,000
June
750,000
750,000
July
750,000
750,000
August
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
In addition, adjust the formula for wages so

that wages are driven by this month's
purchases rather than last month's purchases.
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
-59,849
500,000
10,951,626
10,951,626
245,932
0
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
-145,925
-25,649
0
-171,575
-171,575
105,399
0
-66,175
-66,175
253,628
0
187,453
187,453
352,734
540,187
0
0
300,436
0
300,436
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
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
The Year
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
4,431,877
-34,691
5,660,324
12,290,830
17,951,154
842,547
3,124,139
-92,874
3,873,811
12,155,070
16,028,882
1,191,195
2,957,147
-175,183
3,973,159
11,463,017
15,436,176
September
October
November
December
January
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
13,218,449
-7,104,141
7,156,094
-2,857,158
4,797,562
-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
3,400,956
February
3,616,031
750,000
750,000
September
750,000
750,000
October
750,000
750,000
November
750,000
750,000
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
-76,912
500,000
12,371,777
12,371,777
-80,947
0
12,290,830
12,290,830
-135,760
0
12,155,070
12,155,070
-192,053
500,000
11,463,017
358,409
-32,962
325,446
0
0
-34,691
0
-34,691
-34,691
-58,183
0
-92,874
-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
4,447,404
-80,947
November
3,531,762
-135,760
December
2,767,050
-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
4,431,877
-34,691
5,660,324
12,290,830
17,951,154
842,547
3,124,139
-92,874
3,873,811
12,155,070
16,028,882
1,191,195
2,957,147
-175,183
3,973,159
11,463,017
15,436,176
127,447,752
1,400,000
128,847,752
1,073,731
23,456,837
106,669,415
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
Gross Sales
Inventories (3)
Summary of Sales, Inventory and Debt Results

January
2,616,120
1,452,010
1,353,298
Below are the base case forecast exhibits adjusted to reflect the Hibachi proposal.
Exhibit
Location
A549..Q567
A569..Q588
Exhibit 9 Schedule of Cash Receipts and Disbursements
A590..Q619
A621..Q669
Graph
V562..AD580
EXHIBIT 8
KOTA FIBRES, LTD.
(In Rupees)
January
Gross Sales
Excise Taxes
Net Sales
Cost of Goods Sold
Gross Profit
Operating Expenses
Depreciation
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.

(In Rupees)
January
Assets
Cash (1)
Inventories (3)
Total Assets
750,000
2,773,349
1,452,010
4,975,359
8,733,016
13,708,374

Accrued Taxes (7)
758,428
1,353,298
-76,596
2,035,130
11,673,244
13,708,374
EXHIBIT 9
KOTA FIBRES, LTD.
(In Rupees)
January
Assume:
Sales
Purchases
Debt Outstanding
1,591,054
684,102
2,616,120
1,589,947
1,353,298
Receipts:

2,515,500
463,417
Disburs.:
Accounts Paid
Interest Payments
Excise Tax Paid
Operating Expenses
Wages
Dividends
1,591,054
0
12,309
392,418
454,501
0
540,958
0
2,991,240
-12,323
BOP Cash Balance

EOP Cash Balance
762,323
762,323
750,000
Exhibit 10
KOTA FIBRES, LTD.
(In Rupees)
January
Beginning of Period
2,672,729
Plus Sales
2,616,120
885,456
1,630,044
End of Period
2,773,349
Beginning of Period
Plus Purchases (1)
Plus Labor
End of Period

Beginning of Period
+ Purchases (1)
- Payments (2)
End of Period
Adjust purchases using the following formula:
Purchasesm = (Salesm+2 x (
1,591,054
P
) x . 65) + ( Sales
S
1,249,185
1,589,947
540,958
1,928,080
1,452,010
759,535
1,589,947
1,591,054
758,428


Beginning of Period
Plus Net Profit
Less Dividends
End of Period
11,851,967
-178,723
0
11,673,244

Beginning of Period
End of Period
0
-76,596
0
-76,596

Ending Gross PP&E
Ending Net PP&E
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
January
2,616,120
-178,723
February
2,892,825
-162,477
March
4,447,404
-60,165
Assets
Cash (1)
Inventories (3)
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

Accrued Taxes (7)
758,428
1,353,298
-76,596
2,035,130
11,673,244
2,485,482
2,017,987
-146,229
4,357,241
11,510,767
5,079,536
5,754,537
-172,014
10,662,060
10,950,602
Gross sales
Net profit
13,708,374
15,868,008
21,612,662
Schedule of Inventories
Beginning of Period
Plus Purchases (1)
Plus Labor
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
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
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
June
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
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
March
April
May
June
February
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
ents
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
May
June
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
following formula:
sm+2 x (
P
P
P
) 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
-69,633
0
-146,229
-146,229
-25,785
0
-172,014
-172,014
103,741
0
-68,272
-68,272
251,282
0
183,010
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
7,697,643
19,390,528
183,010
27,271,181
11,778,990
5,532,254
24,728,089
0
30,260,342
12,102,521
3,999,190
21,067,369
306,753
25,373,312
12,818,278
2,368,990
12,403,927
373,366
15,146,282
12,973,707
30,403,445
39,050,171
42,362,863
38,191,590
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
August
8,572,824
1,360,948
12,403,927
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
July
August
September
October
November
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
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
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
0
306,753
0
306,753
306,753
66,613
0
373,366
373,366
-27,004
346,362
0
0
-29,708
0
-29,708
-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
997,653
2,980,827
-29,708
3,948,772
12,341,379
1,062,928
1,646,578
-82,583
2,626,923
12,218,005
1,002,041
1,844,640
-160,197
2,686,484
11,536,905
19,786,628
16,290,151
14,844,928
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
15.28%
8.33%
June
19.35%
8.33%
July
17.95%
8.33%
August
9.43%
8.33%
September
5.53%
8.33%
October
4.89%
8.33%
November
3.89%
8.33%
December
3.04%
8.33%
A
183
184
185
186
187
188
189 Gross Sales
190 Excise Tax
191 Net Sales
192 Cost of Goods
193 Gross Profits
194 Operating Expenses
195 Depreciation
196 Interest Expense
197 Profit Before Tax
198 Income Tax
199 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

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Kota Fibres Solution

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This spreadsheet supports INSTRUCTOR analysis of the case, "Kota

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

2) This model intentionally incorporates a circular reference. To resolve

3) As long as the default spreadsheet calculation is set as "automatic",

Comparative Overview of Financial Results Asso

e Overview of Financial Results Associated with Various Proposals

PONDICHERRY SALES OPTION

Summary of Sales and Credit Results

EXHIBIT 8 -contdKOTA FIBRES, LTD.

Liabilities and Owners' Equity

Accts Rcvble Collected

Accounts Paid (2)

BOP Cash Balance

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

3. Schedule of Accounts Payable

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

4. Schedule of Shareholder's Equity

Plus Net Profit

From Balance Sheet

December The Year

685,793 1,028,962 1,157,298

12,224,678 12,130,655 11,983,766

11,145,646 11,145,646 11,145,646

INVENTORY REDUCTION TO 30 DAYS

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

EXHIBIT 8 -contdKOTA FIBRES, LTD.

Liabilities and Owners' Equity

Accts Rcvble Collected

Accounts Paid (2)

BOP Cash Balance

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

3. Schedule of Accounts Payable

To adjust the spreadsheet for the new

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

4. Schedule of Shareholder's Equity

5. Schedule of Accrued Taxes

Liabilities and Owners' Equity

6. Schedule of Property, Plant and Equipment

From Balance Sheet

In addition, adjust the formula for wages so

December The Year

Hibachi's Just in Time proposal

Summary of Sales, Inventory and Debt Results

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

EXHIBIT 8 -contdKOTA FIBRES, LTD.

Liabilities and Owners' Equity

Accts Rcvble Collected

BOP Cash Balance

3. Schedule of Accounts Payable

Adjust purchases using the following formula:

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

4. Schedule of Shareholder's Equity

5. Schedule of Accrued Taxes

6. Schedule of Property, Plant and Equipment

From Balance Sheet

Liabilities and Owners' Equity

Total Liabilities & Equity

LEVEL PRODUCTION PLAN

Sales as % of base case

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