Instructor: Assumptions / Inputs

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

Please note:
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
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Copyright 2001 by the Trustees of the University of Virginia Darden School Foundatio
a Darden School Foundation.
BASE CASE
PONDICHERRY
Comparative Overview of Financial Results Assoc

Base Case
Pondicherry
Debt Balance Summary Debt Balance Summary
Jan 01
1,146,269 Jan 01
1,344,093
June 01
32,950,665 June 01
35,809,122
Dec 01
3,463,702 Dec 01
3,897,616
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
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
30 DAY INVENTORY
HIBACHI JIT
ncial Results Associated with Various Proposals

Inventory
Hibachi JIT
Debt Balance Summary Debt Balance Summary
Jan 01
1,200,185 Jan 01
1,353,298
June 01
25,435,575 June 01
24,728,089
Dec 01
2,957,147 Dec 01
1,844,640
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

Summary of Sales and Credit Results
Sales
6,000,000
January
Normal Cycle
2.88%
Pondicherry Sales
172,681
Credit Outstanding
172,681
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 propos
Exhibit
Exhibit 8 Forecast of Income Statements
Exh. 8 contd Forecast of Balance Sheets
Exhibit 9 Schedule of Cash Receipts and Dis
Exhibit 10 Forecasted T-ACCOUNTS
Location
A25
A44
A65
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
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)
(1) Interest expense = Notes Payable * 145%/12 months.
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
750,000
2,946,030
3,655,168
2,378,033
6,153,817
6,074,063 10,558,985
8,527,238
8,443,107
14,601,300 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
4,225,425
1,344,093
3,439,517
(79,725)
(154,445)
2,935,358
7,510,497
11,665,942 11,491,596
14,601,300 19,002,093
EXHIBIT 9
KOTA FIBRES, LTD.
Schedule of Cash Receipts and Disbursements
(In Rupees)
January
February
Assume: Sales
Purchases (1)
Debt Outstanding
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
1,696,074
0
12,254
418,320
2,607,529
0
28,901
462,566
###
684,102
Operating Expenses
Accrued Income Tax Paid
Wages
Dividends
Subtotal: Disbursements
484,501
0
576,665
0
3,187,813
Receipts - Disbursements
(12,323)
BOP Cash Balance

EOP Cash Balance
762,323
750,000
762,323
484,501
0
886,560
0
4,470,056
0
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)
###
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
5,161,963
2,607,529
End of Period
1,670,990
4,225,425

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
11,851,967 11,665,942
(186,025)
(174,346)
0
0
11,665,942 11,491,596
0
(79,725)
0
(79,725)
(79,725)
(74,720)
0
(154,445)
6. Schedule of Property, Plant and Equipment

Beginning 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

From CR&D
DIFFERENCE
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
o reflect the Pondicherry proposal.
Pro Forma
March
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)
April
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
June
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
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
July
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
August
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
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
April
May
June
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
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 18,158,716
(5,946,073) (12,062,858)
5,161,963
350,000
79,018
711,144
8,141,154
0
172,508
1,407,808
10,312,128
0
291,161
2,220,315
9,565,856
350,000
393,238
2,812,399
March
July
July
5,026,277
0
396,769
2,608,870
August
August
9,138,686
2,607,529
17,800,191
2,949,693
0
287,965
1,370,803
484,501
0
1,755,068
500,000
8,541,693
484,501
0
2,767,992
0
12,973,962
484,501
0
3,506,124
0
16,814,228
484,501
494,322
3,252,391
500,000
17,852,705
484,501
0
1,708,934
0
10,225,351
484,501
0
1,002,896
0
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
April
May
June
July
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
10,312,128
8,141,154
9,375,589
9,565,856
10,312,128
8,629,317
5,026,277
9,565,856
4,089,739
2,949,693
5,026,277
2,013,155
2,607,529
2,949,693
March
August
7,204,615
9,375,589
8,629,317
4,089,739
2,013,155
1,670,990
11,491,596 10,911,210
(80,386)
221,545
500,000
0
10,911,210 11,132,756
11,132,756
566,950
0
11,699,705
11,699,705
805,680
500,000
12,005,386
12,005,386
695,880
0
12,701,266
12,701,266
119,169
0
12,820,435
149,031
345,292
494,322
0
0
298,234
0
298,234
298,234
51,073
0
349,307
(154,445)
(34,451)
0
(188,896)
(188,896)
94,948
0
(93,948)
(93,948)
242,978
0
149,031
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
October November December
5.53%
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
###
###
804,462
711,144 564,732 442,454
4,558,617 4,029,817
###
###
3,952,589 3,494,089
###
###
606,028
535,729 425,432 333,315
484,501
484,501 484,501 484,501
92,880
92,880
92,880
95,797
165,444
92,666
57,892
46,674
(136,797) (134,318) (209,841) (293,656)
(41,039)
(40,296) (62,952) (88,097)
(95,758)
(94,023) (146,889) (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
7,109,306
1,894,814
9,754,120
8,776,314
###
1,134,146
9,583,567
0
10,717,713
12,224,678
22,942,391
685,793
###
###
5,754,282
###
###
(40,296) (103,248) (191,345)
6,399,780
###
###
###
###
###
###
###
###
September
5,363,079
2,070,685
9,583,567
October
4,740,962
1,622,331
5,754,282
14,323,386 7,892,313
(8,216,624) (3,829,285)
2,607,529
350,000
165,444
804,462
2,070,685
0
92,666
711,144
750,000
###
###
###
###
###
750,000
###
###
###
###
###
November December
###
###
###
###
###
###
###
###
###
69,854
###
0
57,892
564,732
###
350,000
46,674
442,454
January
3,573,637
February
###
484,501
308,268
886,560
500,000
6,106,763
484,501
0
704,033
0
4,063,029
750,000
750,000
750,000
750,000
750,000
750,000
750,000
750,000
September
19,220,965
5,363,079
3,429,130
9,789,320
1,104,937
10,260,658
October
484,501
0
551,593
0
###
484,501
0
668,270
500,000
###
November December
###
4,740,962
2,012,400
5,143,694
736,219
7,109,306
###
###
###
###
410,007
###
###
###
###
###
306,398
###
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
###
###
551,593
###
###
###
###
668,270
###
###
1,670,990
2,070,685
2,607,529
1,134,146
1,622,331
2,070,685
685,793
###
###
###
###
###
1,134,146
685,793
###
###
12,820,435
(95,758)
500,000
12,224,678
###
###
###
(94,023) (146,889) (205,559)
0
0 500,000
###
###
###
349,307
(41,039)
308,268
0
0 (40,296) (103,248)
(40,296) (62,952) (88,097)
0
0
0
(40,296) (103,248) (191,345)
10,795,646
350,000
11,145,646
92,880
2,276,451
8,869,195
9,583,567
9,583,567
0
###
0
###
92,880
2,369,332
8,776,314
5,754,282
5,754,282
0
###
0
###
92,880
###
###
###
350,000
###
95,797
###
###
###
###
0
###
###
0
###
###
###
###
###
###
Sales
A/R
Inv
A/P
n/p
January February
###
###
###
###
###
###
###
###
###
###
March
###
###
###
###
###
April
###
###
###
###
###
INVENTORY REDUCTION TO 30 DAYS
Gross Sales
Inventories (3)
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
Below are the basic forecast exhibits, adjusted to reflect the inventory policy proposal.
Exhibit
Location
A20
A40
Exhibit 9 Schedule of Cash Receipts and DisbursementA61
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.
EXHIBIT 8 -contd-
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)
KOTA FIBRES, LTD.

(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

Accrued Taxes (7)
911,723
1,766,741
1,200,185
2,156,979
(76,318)
(145,925)
2,035,590
3,777,794
11,673,891 11,511,474
13,709,481 15,289,269
EXHIBIT 9
KOTA FIBRES, LTD.
(In Rupees)
January
Assume:
Sales
Purchases (1)
Debt Outstanding
1,438,866
684,102
750,000
3,291,542
2,598,841
6,640,383
8,648,885
15,289,269
February
2,616,120
1,591,054
1,200,185
2,892,825
2,446,072
2,156,979
Receipts:
Accts Rcvble Collected

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
1,591,054
0
20,283
433,924
454,501
0
831,665
0
2,838,127
(12,323)
BOP Cash Balance

EOP Cash Balance
762,323
750,000
762,323
3,331,425
0
750,000
750,000

Exhibit 10
KOTA FIBRES, LTD.
(In Rupees)
January
February
Beginning of Period
2,672,729
2,773,349
Plus Sales
2,616,120
2,892,825
885,456
1,046,448
1,630,044
1,328,184
End of Period
2,773,349
3,291,542
To adjust the spreadsheet for the new

inventory policy, simply change the
purchasing from two months ahead to one
month ahead.
Beginning of Period
Plus Purchases (1)
Plus Labor
End of Period

Beginning of Period
+ Purchases (1)
- Payments (2)
End of Period
1,438,866
In add
that w
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
Beginning of Period
Plus Net Profit
Less Dividends
End of Period
11,851,967 11,673,891
(178,076)
(162,417)
0
0
11,673,891 11,511,474

Beginning of Period
End of Period
0
(76,318)
0
(76,318)

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

From CR&D
DIFFERENCE
(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
February
2,892,825
(162,417)
March
4,447,404
(59,849)
Exhibit TN3
Gross sales
Net profit
Assets
Cash (1)
Inventories (3)
Net Prop. Plant & Equip.(4)
Total Assets
January
2,616,120
(178,076)
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)
Schedule of Inventories
Beginning of Period
Plus Purchases (1)
Plus Labor
End of Period
911,723
1,766,741
4,163,007
1,200,185
2,156,979
5,540,762
(76,318)
(145,925)
(171,575)
2,035,590
3,777,794
9,532,193
11,673,891 11,511,474 10,951,626
13,709,481 15,289,269 20,483,819
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
August
olicy proposal.
Pro Forma
March
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)
April
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
June
July
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
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
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
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
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 17,079,239
(1,590,457) (9,451,941)
2,446,072
350,000
46,507
667,111
454,501
0
1,646,395
500,000
4,842,338
0
102,001
1,320,638
454,501
0
2,596,600
0
7,637,058
0
182,094
2,082,834
454,501
0
3,289,026
0
9,673,607
350,000
267,242
2,638,256
454,501
540,187
3,051,005
500,000
March
8,973,543
0
297,738
2,447,330
454,501
0
1,603,118
0
4,715,053
0
231,023
1,285,924
454,501
0
940,797
0
6,110,585
9,316,076
13,645,513
17,474,797
13,776,229
7,627,297
750,000
750,000
750,000
750,000
750,000
750,000
750,000
750,000
750,000
750,000
750,000
750,000
April
May
June
July
August
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
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
March
3,291,542
4,447,404
1,157,130
1,569,672
5,012,144
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 10,951,626
(59,849)
245,932
500,000
0
10,951,626 11,197,558
(145,925)
(25,649)
0
(171,575)
(171,575)
105,399
0
(66,175)
11,197,558
591,799
0
11,789,356
(66,175)
253,628
0
187,453
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
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
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
September
5,031,000
(76,912)
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 The Year
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)
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
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
September
October
November
December
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
2,446,072
0
70,814
667,111
454,501
0
660,439
0
1,942,469
0
45,651
529,764
454,501
0
517,438
0
1,521,878
350,000
36,741
415,058
454,501
0
635,979
500,000
January
February
3,400,956
3,616,031
6,114,308
4,298,937
3,489,823
3,914,155
750,000
750,000
750,000
750,000
750,000
750,000
750,000
750,000
September
October
November
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 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
(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
November
December
4,447,404
3,531,762
2,767,050
(80,947)
(135,760)
(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
127,447,752
1,400,000
128,847,752
1,073,731
23,456,837
106,669,415
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
1,942,469
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

Summary of Sales, Inventory and Debt Results
January
2,616,120
1,452,010
1,353,298
Gross Sales
Inventories (3)
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.
EXHIBIT 8 -contd-
KOTA FIBRES, LTD.

(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:
Accts Rcvble Collected

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
750,000
762,323
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:
P
Purchasesm = (Salesm+2 x ( ) x .65) + (Sale
S
1,591,054
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
10,095,646
1,278,500
Ending Net PP&E
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
Gross sales
Net profit
January
2,616,120
(178,723)
February
2,892,825
(162,477)
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
March
4,447,404
(60,165)
750,000
5,012,144
6,938,680
12,700,824
8,911,838
21,612,662
Liabilities and Owners' Equit

Accrued Taxes (7)
Schedule of Inventories
Beginning of Period
Plus Purchases (1)
Plus Labor
End of Period
758,428
1,353,298
(76,596)
2,035,130
11,673,244
13,708,374
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
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
Debt Results
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
i proposal.
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
April
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)
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
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
June
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
90
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
nts
February
March
April
May
June
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
3,317,001
350,000
46,959
667,111
454,501
0
1,127,780
500,000
5,911,055
0
107,529
1,320,638
454,501
0
2,009,759
0
8,067,210
0
189,913
2,082,834
454,501
0
2,742,851
0
8,529,162
350,000
266,550
2,638,256
454,501
535,952
2,899,915
500,000
3,039,321
6,463,352
9,803,481
13,537,309
16,174,335
750,000
750,000
750,000
750,000
750,000
750,000
750,000
750,000
750,000
750,000
ements
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
5,012,144
8,804,250
1,778,962
1,735,695
10,301,737
May
10,301,737
13,885,560
3,521,700
2,668,442
17,997,155
June
17,997,155
17,588,376
5,554,224
5,282,550
24,748,757
following formula:
P
P
P
esm+2 x ( ) 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
(76,596)
(69,633)
0
(146,229)
(146,229)
(25,785)
0
(172,014)
10,950,602
242,063
0
11,192,665
(172,014)
103,741
0
(68,272)
11,192,665
586,325
0
11,778,990
(68,272)
251,282
0
183,010
11,778,990
823,531
500,000
12,102,521
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
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
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
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
July
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
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
August
September
October
November
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
4,830,709
0
202,222
1,285,924
454,501
0
1,642,441
0
3,200,508
350,000
111,135
754,650
454,501
346,362
1,088,173
500,000
2,216,642
0
54,204
667,111
454,501
0
753,658
0
1,829,172
0
27,957
529,764
454,501
0
621,919
0
11,705,966
8,415,797
6,805,329
4,146,115
3,463,313
750,000
750,000
750,000
750,000
750,000
750,000
750,000
750,000
750,000
750,000
July
August
September
October
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
19,786,628
1,360,948
2,216,642
1,088,173
3,707,847
957,916
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
1,002,041
1,844,640
(160,197)
2,686,484
11,536,905
14,223,389
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
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
January
3,400,956
February
3,616,031
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
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
June
July
15.28%
8.33%
19.35%
8.33%
17.95%
8.33%
August September October

9.43%
8.33%
5.53%
8.33%
4.89%
8.33%
November December
3.89%
8.33%
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
Peak Debt
32,950,665
31,216,310
29,481,954
27,747,599
26,013,244
24,278,889
End Debt
3,463,701
3,280,920
3,098,139
2,915,358
2,732,577
2,549,796
Operating expenses as
a % of sales
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
Peak Debt
32,950,665
32,621,294
32,291,923
31,963,281
31,635,709
31,308,137
End Debt
3,463,701
2,714,270
1,964,839
1,260,586
588,325
(83,937)
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
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
3,063,969
2,664,236
2,264,503
1,864,771
1,465,038
1,065,305
665,573
265,840
es and COGS
TABLE -1
Financial ratios
Current Ratio
Quick Ratio
Average Collection period
Average Payment period
Total asset turnover Ratio
Debt to asset ratio
Gross profit margin
Return on asset
Actual (2000)
3.24
2.38
15.13
5.15
4.85
0.11
0.14
0.19
TABLE -2
Assumptions
-------------------------------------------------------------------------- ------------------------------Ratio of:
Income Tax/Profit Before Tax
30%
Excise Tax/Sales
15%
This Month Collections of Last Month's Sales
40%
This Month Collections of Month-before-Last Sales
60%
Purchases/Two Months Advance Sales
55%
Wages/Purchases
34%
Annual Operating Expenses/Annual Sales
6.00%
Capital Expenditures (every third month)
350,000
Interest Rate on Borrowings (and deposits)
14.5%
Minimum Cash Balance
750,000
Depreciation/Gross PP&E (per year)
10%
(per month)
0.83%
Dividends Paid (every third month)
500,000
TABLE -3
Inventory
Accounts receivable
Accounts Payable
Net Sales
Cost of Goods Sold
2000 ( Actual)
1249185.00
2672729.00
759535.00
64487358.00
53865911.00
Inventory Period
Inventory Turnover
Invetory Period
43.12
8.46
Receivables Period
Receivable turnover
Receivables Period
24.13
15.13
Operating Cycle
23.59
Payable Period
Payable turnover
Payable Period
70.92
5.15
Cash cycle
18.45
TABLE 4
Month
January
February
March
April
May
June
July
August
September
October
November
December
Cash Cycle ( days)

40.43
4.26
59.53
58.09
60.35
62.04
65.67
92.01
94.72
65.34
58.27
59.68
TABLE 5
Debt Outstanding adjusted

Debt Outstanding
Increase in debt outstanding

Debt Outstanding
Jan
1344092
1146268
197824
Jul
29076414
27167192
Increase in debt outstanding
1909222
TABLE 6
New Borowing ( repayments)
Borrowing adjusted
Increase in Borrowings
Jan
659990
462166
197824
New Borowing ( repayments)

Borrowing adjusted
Increase in Borrowings
Jul
-6163826
-5783473
-380353
TABLE 7
Debt Outstanding
Decrease in debt outstanding
Jan
1146268
20347
1125921
Debt Outstanding
Jul
27167192
23616381
3550811
TABLE 8
Borowing adjusted
New Borrowing
Decrease in Borrowings
Jan
462166
455363
6803
Borowing adjusted
New Borrowing
Jul
-5783473
-5847587
64114
TABLE 9
Debt Outstanding
Jan
1146268

367375
778893
Debt Outstanding
Jul
27167192
24648261
2518931
TABLE 10
Borowing adjusted
New Borrowing
Jan
462166
457460
4706
Borowing adjusted
New Borrowing
Jul
-5783473
-5829145
45672
Forecast (2001)
1.51
1.01
17.55
6.31
4.94
0.28
0.11
0.09
2001( Forecasted)
2225373.00
3715152.00
1157298.00
77265092.00
66993380.00
30.10
12.12
20.80
17.55
29.67
57.89
6.31
23.37
Feb
3370024
2962622
407402
Mar
9503690
8767030
736660
Apr
18729070
1741937
16987133
May
28941414
26997556
1943858
Jun
35240240
32950665
2289575
Aug
16955838
15795793
Sep
8970898
8352899
Oct
5399639
5002010
Nov
3562712
3278054
Dec
3704996
3463701
1160045
617999
397629
284658
241295
Feb
2025932
1816354
209578
Mar
6133666
5804408
329258
Apr
9225381
8652349
573032
May
10212344
9578178
634166
Jun
6298826
5953108
345718
Aug
-12120576
-11371400
-749176
Sep
-7984940
-7442894
-542046
Oct
-3571259
-3350889
-220370
Nov
-1836928
-1723956
-112972
Dec
142284
185647
-43363
Feb
2962622
158861
2803761
Mar
8767030
3107487
5659543
Apr
17419379
8974693
8444686
May
26997556
17496956
9500600
Jun
32950665
25889398
7061267
Aug
15795793
13579044
2216749
Sep
8352899
6585028
1767871
Oct
5002010
3727314
1274696
Nov
3278054
2088851
1189203
Dec
3463701
1984962
1478739
Feb
1816354
1792611
23743
Mar
5804408
5753275
51133
Apr
8652349
8567135
85214
May
9578178
9469758
108420
Jun
5953108
5965658
-12550
Aug
-11371400
-11406245
34845
Sep
-7442894
-7430057
-12837
Oct
-3350889
-3369270
18381
Nov
-1723956
-1738841
14885
Dec
185647
169528
16119
Feb
2962622
Mar
8767030
Apr
17419379
May
26997556
Jun
32950665
978996
1983626
4732628
4034402
11384942
6034437
20205093
6792463
27910000
5040665
Aug
15795793
14235423
1560370
Sep
8352899
7114973
1237926
Oct
5002010
4118690
883320
Nov
3278054
2456531
821523
Dec
3463701
2434617
1029084
Feb
1816354
1799663
16691
Mar
5804408
5768049
36359
Apr
8652349
8591516
60833
May
9578178
9500681
77497
Jun
5953108
5961889
-8781
Aug
-11371400
-11396045
24645
Sep
-7442894
-7433632
-9262
Oct
-3350889
-3363704
12815
Nov
-1723956
-1734255
10299
Dec
185647
174466
11181

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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",

a Darden School Foundation.

Comparative Overview of Financial Results Assoc

ncial Results Associated with Various Proposals

PONDICHERRY SALES OPTION

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

EXHIBIT 8 -contdKOTA FIBRES, LTD.

Liabilities and Owners' Equity

Receipts: Accts Rcvble Collected

Disburs.: 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

6. Schedule of Property, Plant and Equipment

From Balance Sheet

o reflect the Pondicherry proposal.

November December The Year

INVENTORY REDUCTION TO 30 DAYS

Summary of Sales, Inventory and Credit Results

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

KOTA 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).

To adjust the spreadsheet for the new

3. Schedule of Accounts Payable

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

In addition, adjust the formula for wages so

December The Year

December The Year

12,948,689 12,371,777 12,290,830 12,155,070

Hibachi's Just in Time proposal

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

KOTA FIBRES, LTD.

Liabilities and Owners' Equity

Accts Rcvble Collected

BOP Cash Balance

3. Schedule of Accounts Payable

4. Schedule of Shareholder's Equity

Adjust purchases using the following formula:

5. Schedule of Accrued Taxes

6. Schedule of Property, Plant and Equipment

From Balance Sheet

Liabilities and Owners' Equit

LEVEL PRODUCTION PLAN

August September October

Sales as % of base case

Cash Cycle ( days)

Debt Outstanding adjusted

Debt Outstanding adjusted

Increase in debt outstanding

New Borowing ( repayments)