Triveni Textiles Ltd.

Operating Statement
(In 000's)
Year.1 Year.2 Year.3

1 Gross Sales
a) Domestic Sales 12009 15965 24982
b) Export Sales 0 0 0
Total 12009 15965 24982
2 Less Excise Duty and Trade Discount 535 708 1015
3 Net Sales (1-2) 11474 15257 23967
4 %age Rise (+) or fall (-) in net sales as compared to the 32.97 57.09
previous year
5 Cost of Sales
a) Raw Materials
I ) Imported 0 0 0
ii ) Indigenous Purchased 8588 12414 20273
+ Opening Stock 883 1201 1506
- Closing Stock 1201 1506 2809
iii) Raw material Consumed 8270 12109 18970
b) Other Spares
I ) Imported 0 0 0
ii ) Indigenous 443 526 1023
c) Power and Fuel 363 666 1124
d) Dir Direct Labour, Factory wages and Salaries 1037 1359 1916
e) Other Manufacturing Exp.and Repair & Maintenance 37 60 70
f) Depreciation 203 423 639
g) Sub Total (a to f) 10353 15143 23742
h) Add: Opening Stocks in Process 92 152 575
I ) Deduct: Closing Stocks in Process 152 575 695
j) Cost of Production 10293 14720 23622
k ) Add: Opening Stock of finished goods 283 323 1962
m ) Deduct closing stock of finished goods 323 1962 4273
o ) SUB TOTAL ( TOTAL cost of Sales) 10253 13081 21311
Gross Profit 1221 2176 2656
6 Selling General and Administrative expenses 379 562 663
7 SUB TOTAL ( 5+6 ) 10632 13643 21974
8 Operating profit before interest ( 3-7) 842 1614 1993
9 Interest 550 942 1186
10 Operating profit after interest (8-9) 292 672 807
11 a) Add other non operating income
I 284 59 95
ii 0 0 0
Sub Total ( income) 284 59 95
b) Deduct other non operating expenses
I 0 0 0
ii 0 0 0
Sub Total ( expenses) 0 0 0
c) Net of other non operating income/expenses
Net of 11 (a) and 11 (b) 284 59 95
12 Profit before tax/loss 10+11 (b) 576 731 902
13 Provision for taxes 180 350 300
14 Net profit/Loss ( 12-13) 396 381 602
 Triveni Textiles Ltd.
BALANCE SHEET

Year.1 Year.2 Year.3

Current Laibilities
1 Short term borrowings from banks (include bills purchased

discounted & excess borrowings placed on repayment basis)

i) From N.I.Bank 977 2279 4715
ii) From other banks 0 0 0
iii) (of which BP & BD) 0 0 0
Sub Total (A) 977 2279 4715
2 Short Term borrowings from others 0 0 1000
3 Sundry creditors (Trade) 610 1676 3694
4 Advance payments from customers/deposits from dealers 0 0 0
5 Provision for Taxation 200 550 850
6 Dividend Payable 0 0 0
7 Other Statutory liabilities (due within one year) 0 0 0
Deposits/installments of terms loans/DPG's/Debentures etc,
8 due 0 0 0
within one year) 0 0 0
9 Other current liabilities & provisions (due within one year) 193 223 245
(Specify major items)
Sub Total (B) 1003 2449 5789
10 Total current liabilities (Total of Sub-Totals A & B) 1980 4728 10504

Term Liabilities
11 Debentures (not maturing within one year) 0 0 0
12 Preference shares (redeemable after one year) 0 0 0
13 Term Loans (excluding instalments payable within one year) 8700 10000 9000
Deferred payment Credits (Exclude instalments due within 1
14 yr.) 0 0 0
15 Term Deposits (repayble after 1 yr.) 0 0 0
16 Other term liabilities 1100 1350 1425
17 Total term Liabilities (Total of 11 to 16) 9800 11350 10425
18 Total Outside Liabilities (10 + 17) 11780 16078 20929

Net worth
19 Ordinary share capital 4400 4400 4400
20 Share Premium Account 880 880 880
21 Reserves 650 977 1525
22 Other Reserves (excluding provisions) 0 0 0
23 Surplus (+) or deficit(-) in profit or loss account 0 0 0
24 Net worth 5930 6257 6805

25 Total Liabilities (18 + 24) 17710 22335 27734

 Current Assets
26 Cash and Bank balances 3981 11 42
27 Investments (other than long term investments
I Govt. and other Trustee securities 103 106 107
ii Other Securities 0 0 0
28 I Receivables other than deferred & 184 294 917
exports (incl. Bills purchased &discounted by banks)
ii Exports receivables (incl.bills 0 0 0
purchased/discounted by banks)
29 Instalments of deferred receivables (due within one year) 0 0 0
30 Inventory
I Raw materials (include stores & other items used in the
process of manufacture)
a) Imported
b)Indigenous 1201 1506 2809
ii Stocks in process 152 575 695
iii Finished Goods 323 1962 4273
iv Other consumables spares
a) Imported
b)Indigenous 310 483 912
31 Advance to suppliers of raw materials & stores/spares 0 0 0
32 Advance payment of taxes 0 0 0
33 Other current Assets 456 964 1820
34 Total Current Assets of (26 to 33) 6710 5901 11575

Fixed Assets
35 Gross Block (land, building, machinery, work in progress) 10990 16301 16670
36 Depreciation to date 1118 1546 2185
37 Net Block (35-36) 9872 14755 14485

Other Non current Assets

38 Investments/book debts/advances/deposits which are not
Current Assets
I
a) Investments in Subsidiary companies/affiliates 400 700 1070
b) Other investments 10 10 10
ii Advances to suppliers of capital goods & contractors
iii Deferred receivables (maturity exceeding 1 yr.)
iv Others 378 595 151

39 Non consumables stores and spares 0 0 0

40 other non current assets (incl. Dues from directors) 0 0 0

41 Total other non current assets (38 to 40) 788 1305 1231

42 Intangible Assets 340 374 443

43 Total Assets (total of 34,37,41 and 42) 17710 22335 27734

44 Tangible net worth (24-42) 5590 5883 6362
45 N W C [ (17+24) - (37+41+42)] to tally with (34-10) 4730 1173 1071
46 Current ratio (34/10) 3.39 1.25 1.10
47 Total outside Liabilities/Tangible Net worth (18/44) 2.11 2.73 3.29
 Triveni Textiles
RATIO ANALYSIS

Year.1 Year.2 Year.3

ACTUALS
A) Liquidity
Current Ratio 3.39 1.25 1.10
Quick Ratio 5.02 0.76 0.66
B)Solvency
Debt Equity Ratio 2.11 2.73 3.29
C) Activity/Turnover
Percentage rise (+) or fall (-) in Sales ''''''' 32.94 56.48
Raw Materialsconsumption/sales% 71.51 77.76 81.15
Other manufacturing expenses/sales 0.31 0.38 0.28
Selling, General, Administrative/Expenses/Sales% 3.16 3.52 2.65
Raw Materials-No of days consumption 38.21 36.03 42.78
Stock-in-process- No. of days cost of production 4.84 13.76 10.58
Finished Goods-No. of days cost of sales 10.27 46.94 65.07
Sundry Debtors-No. of days' sales 5.85 7.03 13.97
Sundry Creditors-No. of days purchases 25.93 49.28 66.51
Net Sales/Total Tangible Assets (Capital Turn Over) 0.66 0.69 0.88
Net Sales/Tangible Net Woth 2.05 2.59 3.77
D) Profitability
Return on Sales: a) Gross Profit/Net Sales (%) 10.64 14.26 11.08
b) Operating Profit/Net Sales (%) 2.54 4.40 3.37
c) Net Profit/NetSales (%) 3.45 2.50 2.51
Return on Tangibale Net Worth (%) 7.08 6.48 9.46
Earning Capacity 1.68 3.06 2.96

Triveni TextilesLtd.
Method of Lending

1996 1997 1998

Total Current Assets 6710 5901 11575
Other Current Liabilities (Excluding Bank Borrowings) 1003 2449 5789
Working Capital Gap 5707 3452 5786
Min. Stipulated NWC (25% of the Total Current assets 1677.5 1475.25 2893.75
incl. Export receivables
Actual/Projected NWC 4730 1173 1071
(3) -(4) 4029.5 1976.75 2892.25
(3)- (5) 977 2279 4715

Max Permissible Bank Finance (Lower of 6 & 7) 977 1976.75 2892.25

Excess Borrwings representing shortfall in NWC 0 -302.25 -1822.75

Form IV
 Triveni TextilesLtd.
Funds Flow Statement

Year.1-2 Year.2-3
1. SOURCES
a) Net profit(after tax) 381 602
b) Depreciation 423 639
c)Increase in Capital 0 0
d) Increase in term liabilities, include public deposits 1550 0
e) Decrease in:
I Fixed Assets 0 0
II Other non - current assets 0 74
f) Others (including intangible assets) 0 0
g) Total 2354 1315

2. USES
a) Net Loss 0 0
b) decrease in Terms Liabilities, incl public deposits 0 925
c) Increase in :
I Fixed Assets 5306 369
II Other non current Assets 517 0
d) Dividend Payment 0 0
e) Others( including intangible assets) 34 69
f) Total 5857 1363

3. Long term surplus/Deficit -3503 -48

4. Increase/decrease in current assets -809 5674
5. Increase/decrease in current liabilities other than 1446 3340
bank borrowings.
6. Increase/decrease in working capital gap. -2255 2334
7.Net Surplus(+) / Deficit(-) -1248 -2382
8. Increase/decrease in Bank borrowings. 1302 2436

9. Increase/Decrease in Net Sales 3783 8710

 2000
(Proj.)

2000

0.00
0
0.00
0.00

0.00
0.00
0
0.00
0

1999-2000
 Work Sheet 2
Balance Sheet Analysis(Operating Statemen

Particulars 1st Year 2nd Year 3rd Year

1. Gross Sales 12,009 15,965 24,982
Less: Returns
Less: Trade discount 89 89 132
Less: excise duty 446 619 883
2. Net Sales 11,474 15,257 23,967
3. Cost of production
i. Raw material purchased 8588 12414 20273
ii. Stores/Spares 443 526 1023
iii. Power & Fuel 363 666 1124
iv. Direct Labour 1037 1359 1916
v. Repairs and maintenance 16 33 28
vi. Other manufacturing expenses – ESIC 21 27 42
vii. Depreciation 203 423 639
Add: Opening stock of raw materials 883 1201 1506
Add Opening stock of stocks in process 92 152 575
Sub-Total 11646 16801 27126
Less: Closing stock of raw material 1201 1506 2809
Less: Closing stocks of stocks in process 152 575 695
Total Cost of Production 10293 14720 23622
4. Cost of Sales
Cost of production 10293 14720 23622
Add: Opening stock of finished goods 283 323 1962
Sub-Total 10576 15043 25584
Deduct: Closing stock of finished goods 323 1962 4273
Cost of Sales 10253 13081 21311
5. Gross Profit
Net Sales 11,474 15,257 23,967
Deduct: Cost of Sales 10253 13081 21311
Gross Profit 1,221 2,176 2,656
6. Operating Profit
i. Interest on long term loan 232 221 286
Others-Interest 318 721 900
ii. Administrative expenses
a)  Rent 13 17 21
b)  Rates & Taxes 2 4 7
  
c)  Directors’ Fees   16 19 24
d)  Insurance   110 118 123
e)  Auditor’s Remuneration   5 7 8
f) Misc. Expenses     186 292 268
iii. Selling expenses 47 105 212
Sub-Total (Operating expenses) 929 1504 1849
Gross Profit 1,221 2,176 2,656
Deduct Operating expenses 929 1504 1849
Operating Profit 292 672 807
7. Net Profit before tax
Operating Profit 292 672 807
Add: other income 284 59 95
Sub-Total 576 731 902
Deduct: Other expenses
Net Profit before Tax 576 731 902
8. Provision for tax 180 350 300
Net Profit after Tax 396 381 602
ork Sheet 2
(Operating Statement)
 Triveni Textiles

Item of Financial Statement Year. I Year. II Year. III

1. Net Sales 11,474 15,257 23,967
2. RM Purchased 8,588 12,414 20,273
3. Opening RM 883 1201 1506
4. Closing RM 1,201 1,506 2,809
5. RM Consumed(2+3-4) 8,270 12,109 18,970
6. Cost of Production (COP) 10,293 14,720 23,622
7. Cost of Sales (COS) 10,253 13,081 21,311
8. Operating Expenses 929 1504 1849
9. Manufacturing Expenses 1,437 2,085 3,110
10. Mfg. & Cash Expenses (8+9) 2,366 3,589 4,959
11. Credit Enjoyed 344.58 504.54 790.42
12. Advance Payment received 478.08 635.71 998.63

Traditional/Operating Cycle Method(Year.1)

Basis Holding Gross Net Margin
Period Requi- Requi-
rement rement
Item of Current Asset (Lower of (GR) (GR-Credit %age
Market &
Practice & Advance
Borrower’s Payment
Practice) Available)

RM RMC 1 month 689.17 344.59 25%

SIP/ SFG COP ½ month 428.88 428.88 40%

FG COS 1 month 854.42 854.42 25%

Receiv/ Debtors Net 1½ 1434.25 956.17 25%
Sales months
Cash Mfg. Exp. 1 month 197.17 197.17 100%

Grand Total 3,603.89 2,781.23

Traditional/Operating Cycle Method(Year.2)
Basis Holding Gross Net Margin
Period Requi- Requi-
rement rement
Item of Current Asset (Lower of (GR) (GR-Credit %age
Market &
Practice & Advance
Borrower’s Payment
Practice) Available)

RM RMC 1 month 1009.08 504.54 25%

SIP/ SFG COP ½ month 613.33 613.33 40%
FG COS 1 month 1090.08 1090.08 25%
Receiv/ Debtors Net 1½ 1907.13 1271.42 25%
Sales months
Cash Mfg. Exp. 1 month 299.08 299.08 100%

Grand Total 4,918.70 3,778.45

###
Traditional/Operating Cycle Method(Year.3)
Basis Holding Gross Net Margin
Period Requi- Requi-
rement rement
Item of Current Asset (Lower of (GR) (GR-Credit %age
Market &
Practice & Advance
Borrower’s Payment
Practice) Available)

RM RMC 1 month 1580.83 790.41 25%

SIP/ SFG COP ½ month 984.25 984.25 40%
FG COS 1 month 1775.92 1775.92 25%
Receiv/ Debtors Net 1½ 2995.88 1997.25 25%
Sales months
Cash Mfg. Exp. 1 month 413.25 413.25 100%

Grand Total 7,750.13 5,961.08

Margin PBF Structuring of the
Limit

Amt.

86.15 258.44 Hypothecation

171.55 257.33 Hypothecation

213.61 640.81 Hyp./ Pledge

239.04 717.13 Bills Purchased/
Discounted
197.17 0 -

907.52 1873.71
Margin PBF Structuring of the
Limit

Amt.

126.14 378.40 Hypothecation

245.33 368.00 Hypothecation
272.52 817.56 Hyp./ Pledge
317.86 953.56 Bills Purchased/
Discounted
299.08 0 -

1260.93 2517.52

Margin PBF Structuring of the

Limit

Amt.

197.60 592.81 Hypothecation

393.70 590.55 Hypothecation
443.98 1331.94 Hyp./ Pledge
499.31 1497.94 Bills Purchased/
Discounted
413.25 0 -

1947.84 4013.24