SWAN SWEETS PRIVATE LIMITED

COSTS OF PROJECT

Existing New Proposal Total

Sr. No. Description Amount (Rs.) Incurred Costs Proposed Costs Amount (Rs.)

1 Plant and Machinery 26,584,901 575,000 7,241,219 33,826,120

2 Other Fixed Assets & Investment 6,846,846 - - 6,846,846

3 Working Capital Requirement 9,611,624 - - 9,611,624

TOTAL 43,043,370 7,241,219 50,284,589

MEANS OF FINANCE

Existing New Proposal Total

Sr. No. Description Amount (Rs.) Amount (Rs.) Amount (Rs.) Amount (Rs.)

1 Owner's Capital 29,445,242 575,000 1,769,866 31,790,108

-
2 Finance from unsecured borrowing from relatives 5,313,886 - - 5,313,886
-
3 Finance from Bank 8,284,245 5,471,353 13,755,598
-
-
TOTAL 43,043,373 575,000 7,241,219 50,859,592
-
 SWAN SWEETS PRIVATE LIMITED

STATEMENT SHOWING COST OF PRODUCTION AND FORECAST THEREOF

Particulars Annual Period Annual Period Annual Period Annual Period Annual Period Annual Period Annual Period Annual Period
2008 2009 2010 2011 2012 2013 2014 2015
(Actual) (Actual) (Actual) (Projected) (Projected) (Projected) (Projected) (Projected)

Total Sales 66,277,646.00 79,040,768.00 146,553,454.36 161,208,799.80 177,329,679.78 195,062,647.75 214,568,912.53 236,025,803.78

Gross Profit 15,187,080.50 14,650,064.33 30,555,608.88 30,629,671.96 32,983,320.44 37,256,965.72 40,231,671.10 43,664,773.70
G P as a % of sales 22.91% 18.53% 20.85% 19.00% 18.60% 19.10% 18.75% 18.50%

Cost of Goods Sold 48,532,863.00 61,336,436.96 111,370,408.96 125,370,008.46 138,588,031.57 151,510,429.11 167,382,504.34 184,687,280.18
Other operating expenses (incl. dep) 2,557,702.50 3,054,266.71 4,627,436.52 5,209,119.38 5,758,327.77 6,295,252.93 6,954,737.09 7,673,749.90
Total Factory Costs 51,090,565.50 64,390,703.67 115,997,845.48 130,579,127.83 144,346,359.34 157,805,682.03 174,337,241.43 192,361,030.08
100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Costs of Goods Sold 48,532,863.00 61,336,436.96 111,370,408.96 125,370,008.46 138,588,031.57 151,510,429.11 167,382,504.34 184,687,280.18
Less: Opening stock of finished, wip 2,572,075.00 1,604,562.00 1,574,423.00 1,663,354.87 1,914,155.49 2,040,539.29 2,282,904.05 2,493,458.73
Add: Closing stock of finished, wip 1,604,562.00 1,574,423.00 1,663,354.87 1,914,155.49 2,040,539.29 2,282,904.05 2,493,458.73 2,776,706.48
47,565,350.00 61,306,297.96 111,459,340.83 125,620,809.07 138,714,415.37 151,752,793.87 167,593,059.02 184,970,527.93

RM Consumption 39,367,119.00 52,311,312.39 95,105,798.11 107,189,466.74 118,361,952.31 129,487,313.22 143,003,462.23 157,831,273.32

Direct labour 3,971,870.50 3,588,133.00 6,419,800.14 7,235,467.94 7,989,629.37 8,740,609.81 9,652,972.43 10,653,874.43

Power and Fuel 3,157,661.00 4,753,618.85 5,179,323.87 5,837,382.94 6,445,820.31 7,051,691.33 7,787,761.21 8,595,262.30

Other manufacuring cost 1,068,699.50 653,233.72 4,754,418.70 5,358,491.45 5,917,013.38 6,473,179.51 7,148,863.15 7,890,117.88

47,565,350.00 61,306,297.96 111,459,340.83 125,620,809.07 138,714,415.37 151,752,793.87 167,593,059.02 184,970,527.93

Costs of goods sold 51,090,566 64,390,704 115,997,845 130,579,128 144,346,359 157,805,682 174,337,241 192,361,030

Average stock of finished goods; 2,088,318.50 1,589,492.50 1,618,888.93 1,788,755.18 1,977,347.39 2,161,721.67 2,388,181.39 2,635,082.60

Finished goods turnover ratio 24.46 40.51 71.65 73.00 73.00 73.00 73.00 73.00

Finished goods holding period 14.92 9.01 5.09 5.00 5.00 5.00 5.00 5.00
RAW MATERIALS'
Opening stock 6,845,539.00 7,916,172.00 7,827,481.00 8,254,940.13 3,491,850.74 9,479,322.11 4,711,068.38 10,960,543.92
Closing stock 7,916,172.00 7,827,481.00 8,254,940.13 3,491,850.74 9,479,322.11 4,711,068.38 10,960,543.92 6,336,033.97
14,761,711.00 15,743,653.00 16,082,421.13 11,746,790.88 12,971,172.86 14,190,390.49 15,671,612.30 17,296,577.90

Average stock of raw materials 7,380,855.50 7,871,826.50 8,041,210.57 5,873,395.44 6,485,586.43 7,095,195.24 7,835,806.15 8,648,288.95

RM Turnover ratio 5.33 6.65 11.83 18.25 18.25 18.25 18.25 18.25

RM Holding period 68.43 54.93 30.86 20.00 20.00 20.00 20.00 20.00

Total Inventories 9,520,734.00 9,401,904.00 9,918,295.00 5,406,006.23 11,519,861.41 6,993,972.43 13,454,002.65 9,112,740.46
 SWAN SWEETS PRIVATE LIMITED

Particulars Year Year Year Year Year Year Year Year

2008 2009 2010 2011 2012 2013 2014 2015
Total Sales
Debtors Turnover 3.44 4.33 8.65 8.11 8.11 8.11 8.11 8.11
Sales 662.78 790.41 1465.53 1370.27 1684.63 1950.63 2145.69 2360.26
Average Debtors 192.94 182.64 169.44 168.94 207.69 240.49 264.54 290.99
Credit period allowed (DAYS) 106.26 84.34 42.20 45.00 45.00 45.00 45.00 45.00

Closing Balance of Debtors 132.41 100.46 137.96 199.91 215.48 265.50 263.57 318.41

SUNDRY CREDITORS PURCHASES

PURCHASES 40,437,752.00 50,918,252.48 100,301,570.51 102,426,377.35 124,349,423.69 124,719,059.48 111,939,703.33 91,924,058.02
AVERAGE CREDITORS 14,898,816.00 12,089,829.50 14,401,090.92 12,627,909.54 10,220,500.58 10,250,881.60 9,200,523.56 7,555,402.03
CREDITORS TURNOVER RATIO 2.71 4.21 6.96 8.11 12.17 12.17 12.17 12.17
CREDIT PERIOD AVAILED IN TERMS OF DAYS 134.48 86.66 52.41 45.00 30.00 30.00 30.00 30.00

AVERAGE CREDITORS FOR PURCHASES 14,898,816.00 12,089,829.50 14,401,090.92 12,627,909.54 10,220,500.58 10,250,881.60 9,200,523.56 7,555,402.03
OPENING + CLOSING CREDITORS 29,797,632.00 24,179,659.00 28,802,181.83 25,255,819.07 20,441,001.15 20,501,763.20 18,401,047.12 15,110,804.06
LESS: OPENING CREDITORS 16,754,080.00 13,043,552.00 11,136,107.00 17,666,074.83 7,589,744.24 12,851,256.91 7,650,506.29 10,750,540.83
CLOSING SUNDRY CREDITORS FOR TRADE 13,043,552.00 11,136,107.00 17,666,074.83 7,589,744.24 12,851,256.91 7,650,506.29 10,750,540.83 4,360,263.23

Consumption of RM 39,367,119.00 52,311,312.39 95,105,798.11 107,189,466.74 118,361,952.31 129,487,313.22 143,003,462.23 157,831,273.32

Add: Closing stock of RM 7,916,172.00 7,827,481.00 8,254,940.13 3,491,850.74 9,479,322.11 4,711,068.38 10,960,543.92 6,336,033.97
Less: Opening stock of RM 6,845,539.00 7,902,283.00 7,827,481.00 8,254,940.13 3,491,850.74 9,479,322.11 4,711,068.38 10,960,543.92

Purchases 40,437,752.00 52,236,510.39 100,301,570.51 102,426,377.35 124,349,423.69 124,719,059.48 149,252,937.78 153,206,763.37

 ASSESSMENT OF WORKING CAPITAL REQUIREMENTS
(in lacs)
Sr. Particulers Year Year Year Year Year Year Year Year
No. 2008 2009 2010 2011 2012 2013 2014 2015
I CURRENT ASSETS
1 Raw materials including stores, packing 79.16 78.27 82.55 34.92 94.79 47.11 109.61 63.36

2 Finished Goods including WIP ( months) 16.05 15.74 16.63 19.14 20.41 22.83 24.93 27.77

3 Receivables 132.41 100.46 137.96 199.91 215.48 265.50 263.57 318.41

4 Advances 17.69 8.93 57.24 57.00 75.00 57.00 75.00 75.00

5 Other current assets due within 12 Months 32.70 15.82 47.67 30.00 42.55 37.20 51.50 50.00

6 Cash and Bank Balances 11.99 48.78 3.54 6.37 7.60 7.78 9.00 8.93

TOTAL CURRENT ASSETS (I) 289.99 268.01 345.60 347.34 455.82 437.42 533.61 543.47

II CURRENT LIABILITIES
1 Creditors for purchases of raw materials
and stores/spare/consumables 130.44 111.36 176.66 75.90 128.51 76.51 107.51 43.60

2 Advances from customers 3.58 4.21 - 10.00 - 5.00 5.25 6.00

3 Instalments on term loans due within 12 Months 4.24 6.07 7.16 14.61 10.53 11.75 13.11 3.51

4 Income tax payable 6.97 0.85 33.66 24.89 25.67 32.25 34.06 36.46

5 Other Statutory Liabilities 7.80 7.48 (0.77) 8.00 6.00 7.00 7.50 5.00

6 Other Current Liabilities & Provisions 28.39 26.73 56.13 40.00 45.00 50.00 44.80 32.00

TOTAL CURRENT LIABILITIES (II) 181.41 156.69 272.84 173.40 215.71 182.50 212.22 126.57
III Working capital gap (I-II) 108.58 111.32 72.77 173.94 240.11 254.92 321.40 416.90
IV Margin For Working Capital 65.88 46.00 2.25 73.94 140.11 154.92 221.40 316.90
V Bank Borrowings 42.70 65.31 70.51 100.00 100.00 100.00 100.00 100.00
46.74 39.27 89.02 82.89 76.67 94.25 91.61 79.46
Financial Analysis & Forecasting
Prepared by Sumit Kumar Jain CA,CS,B.com(Hons.)
Purpose of Spreadsheet: Revised: 11/22/2002 active
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To illustrate concepts related to financial analysis and forecasting. Wksh5
The financial analysis uses a combination of ratios and industry averages to Wksh7
evaluate the financial performance of the company. Trend line graphs are also Wksh9
generated, comparing the company's performance with the industry averages. Wksh11
Finally, the historical information is used to prepare a set of pro forma Wksh13
financial statements using both linear and non-linear functions. Wksh15

Required Inputs:

You will need to collect financial statements for several reporting periods. If you
want to benchmark the performance against the industry, then you will also need
to collect industry averages. The spreadsheet is setup to capture five reporting
periods (annual, quarterly, monthly). All input fields are highlighted in yellow.
For best results, SEC Filings are suggested since these reports provide more
detail than published financial statements.

Note: A small red triangle in the upper right corner of a cell indicates that a comment has
been inserted. Point your mouse over the cell and the comment will appear.

If a cell appears in red, this indicates a warning concerning a calculation.

Worksheets:

This spreadsheet consists of the following worksheets, divided into three sections:

A) Input Worksheets for financial analysis using historical data:

Worksheet Title Purpose

2 General Input Enter general information here - used on several worksheets.
3 Balance Sheet Enter comparative balances sheets for up to five periods.
4 Income Statement Enter comparative income statements for up to five periods.
5 Cash Flow Statement Enter comparative cash flow statements for up to five periods.

Caution: If you enter less than five years of historical information, certain worksheet
formulas may have to be revised.

B) Output Worksheets for evaluating financial performance:

6 Key Financial Data Calculates key financial information for further analysis.
7 Ratio Analysis Calculates a series of ratios for further analysis.
8 Benchmark Analysis Compare ratio analysis to industry averages.
9 Horizontal Analysis Horizontal analysis with corresponding trend lines.
10 Vertical Analysis Common size financials in percentages and graphs.

C) Pro Forma / Forecasted Financials for Budgeting:

11 Pro Forma - Simple Set of pro forma financials using simple assumptions
 12 Pro Forma - Regression Set of pro forma financials using linear trending
13 Pro Forma - Exponential Set of pro forma financials using exponential smoothing
14 Scenario Analysis Example of Scenario Analysis and Goal Seek Analysis
15 Budget Analysis Preliminary budget analysis
16 Final Budgets Set of budgets per various assumptions and forecasts.

Note: Some additional worksheets (Answer Reports 1 & 2) may appear in the spreadsheet
due to the running of Solver.
Macros:

No macros have been used in this spreadsheet to give everyone some assurance that no viruses
are contained in the spreadsheet. However, you are free to add your own macros to save time.
Tools > Macro > Record New Macro

Excel Functions:

This spreadsheet uses certain financial functions (such as =TREND) which might not be
found in your version of Microsoft Excel. To take full advantage of financial and statistical
functions, you should install the Add On package titled: Analysis TookPak. Go to the main
tool bar, select Tools => Add-Ins => check the Analysis TookPak option, insert your
Excel CD and install the Analysis ToolPak. Also, you might want to install the Solver
Add-in since this is useful for solving special forecasting issues (such as finding the
optimal exponential factor).

Compatibility:

This spreadsheet was created with Microsoft Excel 2000. Older versions of Excel (such as 97)
may not be compatible with this spreadsheet.

Corrections:
With any “attempt” to build an Excel Model, I can easily make some mistakes.
So if you have suggestions to make the model better, drop me an email
and I’ll be glad to improve the financial model. My email address is: [email protected]
CA,CS,B.com(Hons.)
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sed on several worksheets.

s for up to five periods.
ents for up to five periods.
ments for up to five periods.

certain worksheet

n for further analysis.

ther analysis.

ding trend lines.

ages and graphs.

mple assumptions
near trending
xponential smoothing
Goal Seek Analysis

ptions and forecasts.

spreadsheet
 General Input Panel Home
The following general information should be entered: Wksh3
Note: Sample data has been entered in the input cells to help you get started. Wksh5
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2-1 Name of Company => Swan Sweets Pvt. Ltd. Wksh9
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2-2 Reporting Periods => Annual (Annual, Semi-annual, Quarterly or Monthly) Wksh13
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2-3 Number of Days in Reporting Period are 365

What reporting periods will be entered?

2-4 Most Current Period 2015 (1999, July 1998, 6/30/97, etc.)
2-5 Previous Period 2014 (1999, July 1998, 6/30/97, etc.)
2-6 2nd Previous Period 2013 (1999, July 1998, 6/30/97, etc.)
2-7 3rd Previous Period 2012 (1999, July 1998, 6/30/97, etc.)
2-8 4th Previous Period 2011
2-9 5th Previous Period 2010
2-10 6th Previous Period 2009
2-11 7th Previous Period 2008 (1999, July 1998, 6/30/97, etc.)

2-9 Number of historical periods to be analyzed 8

How are the amounts expressed in the financial statements?

(such as: in millions of dollars, thousands of Canadian dollars, etc.)
2-10 Lakhs of Rupees
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Balance Sheet for
Swan Sweets Pvt. Ltd.
Lakhs of Rupees
Annual Annual Annual Annual Annual Annual Annual Annual
Period Period Period Period Period Period Period Period
Description 2008 2009 2010 2011 2012 2013 2014 2015
(Actual) (Actual) (Actual) (Projected) (Projected) (Projected) (Projected) (Projected)

Cash and Cash Equivalents 11.99 48.78 3.54 6.37 7.60 7.78 9.00 8.93
Short Term Marketable Securities - - - - - - - -
Accounts Receivable 132.41 100.46 137.96 199.91 215.48 265.50 263.57 318.41
Inventory 95.07 93.88 99.18 54.06 115.20 69.94 134.54 91.13
Other Current Assets 50.39 24.75 104.91 87.00 117.55 94.20 126.50 125.00
Total Current Assets 289.85 267.87 345.60 347.34 455.82 437.42 533.61 543.47

Fixed Assets 328.13 360.76 459.65 537.82 537.82 537.82 537.82 537.82
Accumulated Depreciation (111.06) (129.85) (128.66) (149.02) (168.30) (187.74) (206.17) (223.64)
Net Fixed Assets 217.07 230.91 330.99 388.79 369.52 350.08 331.65 314.18
Longterm Investments 1.58 2.18 3.33 3.33 3.33 3.33 3.33 3.33
Investments in Other Companies - - - - - - - -
Intangibles and Other Assets 6.27 6.27 - - - - - -
Total Non Current Assets 224.92 239.35 334.32 392.12 372.84 353.40 334.98 317.50
Total Assets 514.77 507.22 679.92 739.46 828.66 790.82 868.59 860.97

Accounts Payable 130.44 111.36 176.66 75.90 128.51 76.51 107.51 43.60
Short Term Borrowings 42.70 65.31 70.51 100.00 100.00 100.00 100.00 100.00
Short Term Portion of LT Debt 4.24 6.07 7.16 14.61 10.53 11.75 13.11 3.51
Other Current Liabilities 46.74 39.27 89.02 82.89 76.67 94.25 91.61 79.46
Total Current Liabilities 224.11 222.00 343.35 273.40 315.71 282.50 312.22 226.57

Longterm Debt / Borrowings 15.03 12.33 5.17 38.89 28.36 16.61 3.51 -
Other Longterm Liabilities 75.32 81.63 64.86 80.00 80.00 15.00 - -
Total Non Current Liabilities 90.35 93.96 70.03 118.89 108.36 31.61 3.51 -
Total Liabilities 314.46 315.97 413.38 392.28 424.07 314.11 315.72 226.57

Preferred Equity - - - - - - - -
Common Equity 100.00 100.00 100.00 125.00 125.00 125.00 125.00 125.00
Additional Paid in Capital - - - - - - - -
Retained Earnings 100.31 91.26 166.54 222.21 279.62 351.74 427.89 509.43
Adj for Foreign Currency Transl - - - - - - - -
Treasury Stock - - - - - - - -
Total Shareholder Equity 200.31 191.26 266.54 347.21 404.62 476.74 552.89 634.43
Balance Sheet for
Swan Sweets Pvt. Ltd.
Lakhs of Rupees
Annual Annual Annual Annual Annual Annual Annual Annual
Period Period Period Period Period Period Period Period
Description 2008 2009 2010 2011 2012 2013 2014 2015
(Actual) (Actual) (Actual) (Projected) (Projected) (Projected) (Projected) (Projected)

Total Liabilities & Equity 514.77 507.22 679.92 739.49 828.69 790.85 868.62 861.00

NonDepreciable Fixed Assets - - - - - - - -

Deferred Taxes 10.52 11.72 11.72 11.72 11.72 11.72 11.72 11.72
Goodwill Write Off - - - - - - - -
No of Common Shares o/s 10.00 10.00 10.00 12.50 12.50 12.50 12.50 12.50
Par Value of Common Stock 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
No of Preferred Shares o/s - - - - - - - -
Par Value of Preferred Stock - - - - - - - -
Market Price of Common Stock - - - - - - - -
Market Price of Preferred Stock - - - - - - - -
Preferred Dividends in Arrears - - - - - - - -
Liquidating value of Preferred Stk - - - - - - - -
Book Value per Share 20.03 19.13 26.65 27.78 32.37 38.14 44.23 50.75
Dividends per Common Share - - - - - - - -
Dividend Payout Ratio - - - - - - - -
Cash Dividends to Preferred Stock - - - - - - - -
Cash Dividends to Common Stock - - - - - - - -
Total Dividends Paid - - - - - - - -
Income Statement for
Swan Sweets Pvt. Ltd.
Lakhs of Rupees
Annual Annual Annual Annual Annual Annual Annual Annual
Period Period Period Period Period Period Period Period
Description 2008 2009 2010 2011 2012 2013 2014 2015
Net Sales 662.78 790.41 1,465.53 1,612.09 1,773.30 1,950.63 2,145.69 2,360.26
Other Operating Revenues 3.77 3.54 1.55 2.00 2.00 2.25 2.50 2.50
Total Revenues 666.55 793.95 1,467.08 1,614.09 1,775.30 1,952.88 2,148.19 2,362.76
Cost of Goods Sold (485.33) (613.36) (1,113.70) (1,253.70) (1,385.88) (1,515.10) (1,673.83) (1,846.87)
Other Operating Expenses (25.58) (30.54) (46.27) (52.09) (57.58) (62.95) (69.55) (76.74)
Total Direct Expenses (510.91) (643.91) (1,159.98) (1,305.79) (1,443.46) (1,578.06) (1,743.37) (1,923.61)
Selling, General & Administrative (92.18) (143.72) (190.61) (209.67) (230.63) (253.70) (279.07) (306.97)
Operating Income 63.46 6.32 116.50 98.63 101.20 121.12 125.75 132.17

Interest Expenses (16.87) (13.32) (7.55) (18.07) (18.11) (16.76) (15.54) (14.18)
Foreign Exchange (Loss) Gain - - - - - - - -
Associated Company (Loss) Gain - - - - - - - -
Other NonOperating (Loss) Gain 6.26 - - - - - - -
Income Tax Expense (5.79) (2.05) (33.66) (24.89) (25.67) (32.25) (34.06) (36.46)
Reserve Charges - - - - - - - -
Income Before Extra Ord Items 47.06 (9.05) 75.28 55.67 57.41 72.12 76.16 81.53

Extra Ordinary Items (Loss) Gain - - - - - - - -

Tax Effects of Extraordinary Items - - - - - - - -
Minority Interests - - - - - - - -
Net Income 47.06 (9.05) 75.28 55.67 57.41 72.12 76.16 81.53

Primary EPS 4.71 (0.91) 7.53 4.45 4.59 5.77 6.09 6.52
Earnings Before Int & Taxes 69.72 6.32 116.50 98.63 101.20 121.12 125.75 132.17
Depreciation & Amortization (15.46) (18.79) (25.54) (20.36) (19.27) (19.44) (18.43) (17.47)
Research & Devel Expenses - - - - - - - -
Capitalized Interest Expense - - - - - - - -
Interest Income 1.42 0.42 0.88 0.88 0.88 0.88 0.88 0.88
Total Non Operating Expenses (16.40) (15.38) (41.22) (42.96) (43.78) (49.01) (49.59) (50.64)
Total Extra Ordinary Items - - - - - - - -
Tax Rate 0.12 - 0.31 0.31 0.31 0.31 0.31 0.31

NET PROFIT AFTER TAX 47.06 (9.05) 75.28 55.67 57.41 72.12 76.16 81.53
DEPRECIATION 15.46 18.79 25.54 20.36 19.27 19.44 18.43 17.47

CASH ACCRUALS 62.52 9.74 100.83 76.03 76.69 91.56 94.58 99.01

INTEREST 16.87 13.32 7.55 18.07 18.11 16.76 15.54 14.18

INSTALLMENTS 4.24 6.07 7.16 14.61 10.53 11.75 13.11 3.51

DEBT SERVICE COVERAGE RATIO 3.76 1.19 7.37 2.88 3.31 3.80 3.84 6.40

AVERAGE DSCR 4.60

Cash Flow Statement for
Swan Sweets Pvt. Ltd.
Lakhs of Rupees
Annual Annual Annual Annual Annual Annual Annual Annual
Period Period Period Period Period Period Period Period
Description 2008 2009 2010 2011 2012 2013 2014 2015

Net Income 47.06 (9.05) 75.28 55.67 57.41 72.12 76.16 81.53
Depreciation and Amortization 15.46 18.79 25.54 20.36 19.27 19.44 18.43 17.47
(Increase) Decrease Defer Taxes (0.36) (1.20) - - - - - -
(Gain) Loss on Sale of Assets (6.26) - - - - - - -
(Increase) Decrease Current Assets (31.33) 58.77 (122.97) 1.09 (107.25) 18.59 (94.97) (9.92)
Increase (Decrease) Current Liab (25.46) (2.10) 121.35 (69.95) 42.32 (33.21) 29.72 (85.65)
Cash Flow from Operations (0.88) 65.21 99.20 7.16 11.75 76.93 29.32 3.44

Capital Expenditures (30.78) (32.63) (119.36) (78.16) - - - -

Acquisition in Other Co's -
Proceeds from Sales of Assets - -
Purchases of Investments - (0.60) (1.15) - - - - -
Sale of Investments -
Other Investment Activities -
Cash Provided (Used) from Investmts (30.78) (33.23) (120.51) (78.16) - - - -

Proceeds from Borrowings - - - 33.71 - - - -

Payments on Borrowings (4.24) (2.70) (7.16) - (10.53) (11.75) (13.11) (3.51)
Dividends Paid to Shareholders -
Proceeds from Minority Interest -
Issue Stock / Exercise Options - 25.00
Purchase / Retire Common Stock -
Other Financing Activities 15.31 7.52 (16.77) 15.14 - (65.00) (15.00) -
Cash Provided (Used) from Financing 11.08 4.81 (23.93) 73.85 (10.53) (76.75) (28.11) (3.51)

Increase (Decrease) to Cash (20.58) 36.79 (45.23) 2.86 1.23 0.18 1.22 (0.06)

Beginning Cash Balance 32.57 11.99 48.78 3.54 6.37 7.60 7.78 9.00
Ending Cash Balance 11.99 48.78 3.55 6.40 7.60 7.78 9.00 8.93
Key Financial Data for
Swan Sweets Pvt. Ltd.
Lakhs of Rupees
Annual Annual Annual Annual Annual Annual Annual Annual
Period Period Period Period Period Period Period Period
Description 2008 2009 2010 2011 2012 2013 2014 2015
EBITDA :
Income before ExtraOrd Items 47.06 (9.05) 75.28 55.67 57.41 72.12 76.16 81.53
Interest Expense 16.87 13.32 7.55 18.07 18.11 16.76 15.54 14.18
Capitalized Interest Expense - - - - - - - -
Income Tax Expense 5.79 2.05 33.66 24.89 25.67 32.25 34.06 36.46
Reserve Charges - - - - - - - -
Depreciation and Amortization 15.46 18.79 25.54 20.36 19.27 19.44 18.43 17.47
EBITDA 85.18 25.12 142.04 118.99 120.47 140.56 144.18 149.65

EBITDA Margin 0.13 0.03 0.10 0.07 0.07 0.07 0.07 0.06

Free Cash Flow:

Operating Cash Flow (0.88) 65.21 99.20 7.16 11.75 76.93 29.32 3.44
Investment Cash Flows (30.78) (33.23) (120.51) (78.16) - - - -
Preferred Dividends Paid (fixed) - - - - - - -
Redemption of Fixed Obligations (4.24) (2.70) (7.16) - (10.53) (11.75) (13.11) (3.51)
Other Critical Outlays
Free Cash Flow (35.89) 29.27 (28.46) (71.00) 1.23 65.18 16.22 (0.06)

Working Capital:
Current Assets 289.85 267.87 345.60 347.34 455.82 437.42 533.61 543.47
Current Liabilities 224.11 222.00 343.35 273.40 315.71 282.50 312.22 226.57
Working Capital 65.74 45.87 2.25 73.94 140.11 154.92 221.40 316.90

Liquid Capital:
Cash and Cash Equivalents 11.99 48.78 3.54 6.37 7.60 7.78 9.00 8.93
Marketable Securities - - - - - - -
Accounts Receivable 132.41 100.46 137.96 199.91 215.48 265.50 263.57 318.41
Notes Receivable - - - - - - -
Total Current Liabilities (224.11) (222.00) (343.35) (273.40) (315.71) (282.50) (312.22) (226.57)
Long Term Debt (15.03) (12.33) (5.17) (38.89) (28.36) (16.61) (3.51) -
Preferred Equity - - - - - - - -
Liquid Capital (94.75) (85.09) (207.01) (106.00) (121.00) (25.83) (43.15) 100.77
Ratio Analysis for
Swan Sweets Pvt. Ltd.

Annual Annual Annual Annual Annual Annual Annual Annual

Period Period Period Period Period Period Period Period
Title of Ratio 2008 2009 2010 2011 2012 2013 2014 2015

Acid Test Ratio 0.64 0.67 0.41 0.75 0.71 0.97 0.87 1.44

Current Ratio 1.29 1.21 1.01 1.27 1.44 1.55 1.71 2.40

Operating Cash Flow to Net Income (0.02) (7.20) 1.32 0.13 0.20 1.07 0.39 0.04

Liquidity Index:
Cash - Days Removed - - - - - - - -
Cash Balance 11.99 48.78 3.54 6.37 7.60 7.78 9.00 8.93
Cash Balance Total - - - - - - - -
Marketable Sec - Days Removed - - - - - - - -
Marketable Securities Balance - - - - - - - -
Marketable Securities Total - - - - - - - -
Receivables - Days Removed 71.36 53.77 29.69 45.00 45.00 45.00 45.00 45.00
Receivable Balance 132.41 100.46 137.96 199.91 215.48 265.50 263.57 318.41
Receivable Balance Total 9,448.19 5,401.41 4,096.19 8,996.05 9,696.44 11,947.49 11,860.84 14,328.33
Inventory - Days Removed 71.11 56.22 31.64 22.31 22.29 22.30 22.29 22.30
Inventory Balance 95.07 93.88 99.18 54.06 115.20 69.94 134.54 91.13
Inventory Balance Total 6,760.32 5,277.90 3,137.83 1,205.94 2,567.65 1,559.70 2,999.54 2,032.09
Other - Days Removed 22.00 22.00 22.00 22.00 22.00 22.00 22.00 22.00
Other Current Assets Balance 50.39 24.75 104.91 87.00 117.55 94.20 126.50 125.00
Other Current Assets Total 1,108.58 544.52 2,308.09 1,914.00 2,586.10 2,072.40 2,783.00 2,750.00
Liquidity Index (Days) 59.74 41.90 27.61 34.88 32.58 35.62 33.06 35.16

Z Score:
1.2 x (working capital / total assets) 0.15 0.11 0.00 0.12 0.20 0.24 0.31 0.44
1.4 x (retained earn / total assets) 0.27 0.25 0.34 0.42 0.47 0.62 0.69 0.83
3.3 x (EBIT / total assets) 0.45 0.04 0.57 0.44 0.40 0.51 0.48 0.51
.6 x (market value equity / b.v. debt) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 #DIV/0!
.999 x (sales / total assets) 1.29 1.56 2.15 2.18 2.14 2.46 2.47 2.74
Z Score 2.16 1.96 3.07 3.16 3.22 3.83 3.94 #DIV/0!

Receivable Turnover:
Credit Sales 663 790 1,466 1,370 1,685 1,951 2,146 2,360
Average Receivable Balance 130 116 119 169 208 240 265 291
Receivable Turnover 5.1 6.8 12.3 8.1 8.1 8.1 8.1 8.1
Ratio Analysis for
Swan Sweets Pvt. Ltd.

Annual Annual Annual Annual Annual Annual Annual Annual

Period Period Period Period Period Period Period Period
Title of Ratio 2008 2009 2010 2011 2012 2013 2014 2015

Days Required to Collect A/R 71 54 30 45 45 45 45 45

Inventory Turnover:
Average Inventory Balance 94.55 94.47 96.53 76.62 84.63 92.57 102.24 112.83
Inventory Turnover 5.1 6.5 11.5 16.4 16.4 16.4 16.4 16.4

Days in Inventory 71 56 32 22 22 22 22 22

Total Asset Turnover 1.3 1.6 2.2 2.2 2.1 2.5 2.5 2.7

Operating Assets Ratio 0.98 0.98 1.00 1.00 1.00 1.00 1.00 1.00

Gross Profit Margin 27% 22% 24% 22% 22% 22% 22% 22%

Operating Margin 10% 1% 8% 6% 6% 6% 6% 6%

Net Profit Margin 7% -1% 5% 3% 3% 4% 4% 3%

Direct Cost to Operating Revenues 77% 81% 79% 81% 81% 81% 81% 81%

Capitalization Rate / Asset Return:

Net Operating Income 56 6 80 68 70 84 87 91
Total Investments / Operating Assets 507 499 677 736 825 787 865 858
Capitalization Rate / Return 10.96% 1.27% 11.90% 9.26% 8.47% 10.63% 10.04% 10.65%

Return on Shareholder Equity 23% -5% 38% 28% 29% 36% 38% 41%

Debt to Total Assets 0.61 0.62 0.61 0.53 0.51 0.40 0.36 0.26

Debt to Common Equity 1.57 1.65 1.55 1.13 1.05 0.66 0.57 0.36

Times Interest Earned 4 0 15 5 6 7 8 9

Price to Earnings (P/E) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Ratio Analysis for
Swan Sweets Pvt. Ltd.

Annual Annual Annual Annual Annual Annual Annual Annual

Period Period Period Period Period Period Period Period
Title of Ratio 2008 2009 2010 2011 2012 2013 2014 2015
Price to Book Value 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Home Wksh2 Benchmark Analysis for
Wksh3 Wksh4 Swan Sweets Pvt. Ltd.
Wksh5 Wksh6
Wksh7 active You need to collect benchmark data on the respective industry for the subject company.
Wksh9 Wksh10 Enter the benchmark data in the appropriate input cells. This information is used to
Wksh11 Wksh12 generate trend line graphs in this worksheet. If you do not have any benchmark data,
Wksh13 Wksh14 then fill in the highlighted yellow cell with numeric zero "0". The "industry" line will be null
Wksh15 Wksh16 in the graph and show only the company specific ratio trend.

Annual Annual Annual Annual Annual Annual Annual Annual Annual

Period Period Period Period Period Period Period Period Period
Ref Description 2007 2008 2009 2010 2011 2012 2013 2014 2015

8-1 Acid Test Ratio - Industry

7-1 Acid Test Ratio - Company 0.64 0.64 0.67 0.41 0.75

8-2 Current Ratio - Industry

7-2 Current Ratio - Company 1.12 1.29 1.21 1.01 1.27

8-3 Receivable Turnover - Industry

7-21 Receivable Turnover - Company 3.81 5.12 6.79 12.29 8.11

8-4 Days to Collect A/R - Industry

7-22 Days to Collect A/R - Company 96 71 54 30 45

8-5 Inventory Turnover - Industry

7-25 Inventory Turnover - Company #VALUE! 5.13 6.49 11.54 16.36

8-6 Days in Inventory - Industry

7-26 Days in Inventory - Company #VALUE! 71 56 32 22

8-7 Asset Turnover - Industry

7-27 Asset Turnover - Company 1.00 1.29 1.56 2.16 2.18

8-8 Gross Profit Margin - Industry

7-29 Gross Profit Margin - Company 25.00% 26.77% 22.40% 24.01% 22.23%

8-10 Net Profit Margin - Industry

7-31 Net Profit Margin - Company 1.33% 7.06% -1.14% 5.13% 3.45%

8-11 Return on Total Assets - Industry

8-12 Return on Total Assets - Company 30.00% 9.44% -1.77% 12.68% 7.84%

8-13 Return on Equity - Industry

8-14 Return on Equity - Company 4.22% 23.50% -4.52% 37.58% 27.79%
8-15 Debt to Equity - Industry
7-38 Debt to Equity - Company 215% 157% 165% 155% 113%

8-16 Times Interest Earned - Industry

7-39 Times Interest Earned - Company N. A. 4 0 15 5

We added the following two ratios to assess if the Company has excessive growth:
4-13 Provision for Taxes 1 (6) (2) (34) (25)
8-17 Trading Ratio - Company 1.27 1.12 1.22 1.42 1.21
8-18 Trading Ratio - Industry

8-19 Net Sales to Net Worth - Company 3.14 3.41 4.18 6.29 5.00
8-20 Net Sales to Net Worth - Industry

Source for Benchmark Data: Almanac of Business and Industrial Financial Ratios by Leo Troy, Prentice Hall

Graphs appear below for each of the above comparisons:

Acid Ratio Comparison

0.8
Ratio

0.7
0.6 Acid Test Ratio -
0.5 Industry
0.4 Acid Test Ratio -
0.3 Company
0.2
0.1
0
2007 2008 2009 2010 2011
Periods

Current Ratio Comparison

1.4
Ratio

1.2
1 Current Ratio -
Industry
0.8
 1.2

Rati
1 Current Ratio -
Industry
0.8
0.6 Current Ratio -
Company
0.4
0.2
0
2007 2008 2009 2010 2011
Periods

Turnover Rate

Receivable Turnover Comparison

14
12
10 Receivable Turnover
- Industry
8
6 Receivable Turnover
- Company
4
2
0
2007 2008 2009 2010 2011
Periods
D a y s to C o lle c t A /R

Receivable Collection Comparison

120
100
Days to Collect A/R -
80 Industry
60 Days to Collect A/R -
40 Company

20
0
2007 2008 2009 2010 2011
Periods
 20
0
2007 2008 2009 2010 2011
Periods

Turnover Rate
Inventory Turnover Comparison
18
16
14
Inventory Turnover -
12 Industry
10
8 Inventory Turnover -
6 Company
4
2
0
2007 2008 2009 2010 2011
Periods
D ays H eld in Inventory

Inventory Days Comparison

80
70
60 Days in Inventory -
50 Industry
40 Days in Inventory -
30 Company
20
10
0
2007 2008 2009 2010 2011
Periods
urnover Rate

Asset Turnover Comparison

2.5
Turnove
Asset Turnover Comparison
2.5
2
Asset Turnover -
1.5 Industry
Asset Turnover -
1 Company

0.5
0
2007 2008 2009 2010 2011
G ro s s P ro fit M a rg in Periods

Gross Profit Margin

0.3
0.25
Gross Profit Margin -
0.2 Industry
0.15 Gross Profit Margin -
0.1 Company

0.05
0
2007 2008 2009 2010 2011
Periods
N et P rofit Marg in

Net Profit Margin

0.08
0.06
Net Profit Margin -
0.04 Industry

0.02 Net Profit Margin -

Company
0
2007 2008 2009 2010 2011
 0.02 Net Profit Margin -
Company
0
2007 2008 2009 2010 2011
-0.02

Periods

R e tu rn o n T o ta l A s s e ts
Return on Total Assets
0.4
0.3 Return on Total
0.2 Assets - Industry
Return on Total
0.1 Assets - Company
0
-0.1

Periods
R e tu rn o n C o m m o n E q u ity

Return on Equity Comparison

0.4
0.3 Return on Total
0.2 Assets - Industry
Return on Total
0.1 Assets - Company
0
-0.1

Periods
q u ity R a tio
D e b t to E q u ity R a
Debt to Equity Comparison
2.5
2
Debt to Equity -
1.5 Industry
Debt to Equity -
1 Company

0.5
0
2007 2008 2009 2010 2011
Periods
T im e s In te re s t E a rn e d

Times Interest Earned

18
16
14
Times Interest
12 Earned - Industry
10
8 Times Interest
6 Earned - Company
4
2
0
2007 2008 2009 2010 2011
Periods

Trading Ratio Comparison

1.6
1.4
Ratio

1.2
Trading Ratio -
1 Industry
0.8 Trading Ratio -
Company
 Trading Ratio -
1 Industry
0.8 Trading Ratio -
0.6 Company
0.4
0.2
0
2007 2008 2009 2010 2011
Periods

Sales to Worth Comparison

7
6
Ratio

5 Net Sales to Net

4 Worth - Industry
Net Sales to Net
3 Worth - Company
2
1
0
2007 2008 2009 2010 2011
Periods
Horizontal Analysis for
Swan Sweets Pvt. Ltd.

Horizontal Analysis expresses change between periods as percentages for each account in
the financial statements. The basic formula for horizontal analysis is:
% change = (most recent period - previous period) / previous period

Annual Annual Annual Annual Annual Annual Annual Annual

Period Period Period Period Period Period Period Period
Description 2008 2009 2010 2011 2012 2013 2014 2015

Growth in Net Sales 37.25% 19.26% 85.42% 10.00% 10.00% 10.00% 10.00% 10.00%

Cost of Goods Sold 34.01% 26.38% 81.57% 12.57% 10.54% 9.32% 10.48% 10.34%

Growth in Gross Profits 7.09% -16.34% 7.18% -7.40% -1.73% 2.20% -1.51% -1.09%

Growth in Interest Expense 100.81% -21.02% -43.33% 139.27% 0.24% -7.47% -7.27% -8.75%
Growth in Income Tax Expense -1195.96% -64.49% 1538.51% -26.05% 3.14% 25.61% 5.60% 7.06%

Growth in Non Operating Expenses 108.29% -6.21% 168.01% 4.24% 1.92% 11.93% 1.20% 2.11%

Growth in Minority Interest #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

Growth in Net Income 627.49% -119.24% -931.52% -26.05% 3.14% 25.61% 5.60% 7.06%

Growth in Earnings Per Share 627.49% -119.24% -931.52% -40.84% 3.14% 25.61% 5.60% 7.06%

Cash and Cash Equivalents -63.19% 306.91% -92.73% 79.70% 19.23% 2.40% 15.68% -0.72%
Short Term Marketable Securities #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Accounts Receivable 4.47% -24.13% 37.33% 44.90% 7.79% 23.22% -0.73% 20.80%
Inventory 1.10% -1.25% 5.65% -45.49% 113.09% -39.29% 92.37% -32.27%
Other Current Assets 95.64% -50.88% 323.88% -17.07% 35.11% -19.86% 34.29% -1.19%
Total Current Assets 3.85% -7.58% 29.02% 0.50% 31.23% -4.04% 21.99% 1.85%

Net Fixed Assets 11.04% 6.37% 43.34% 17.46% -4.96% -5.26% -5.26% -5.27%
Longterm Investments 0.00% 38.10% 52.87% 0.00% 0.00% 0.00% 0.00% 0.00%
Investments in Other Companies #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Intangibles and Other Assets 0.00% 0.00% -100.00% #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Total Non Current Assets 2766.68% 6.42% 39.68% 17.29% -4.92% -5.21% -5.21% -5.22%

Growth in Total Assets 6.70% -1.47% 34.05% 8.76% 12.06% -4.57% 9.83% -0.88%

Accounts Payable -22.15% -14.62% 58.64% -57.04% 69.32% -40.47% 40.52% -59.44%
Short Term Borrowings 4.82% 52.95% 7.97% 41.81% 0.00% 0.00% 0.00% 0.00%
Horizontal Analysis for
Swan Sweets Pvt. Ltd.

Horizontal Analysis expresses change between periods as percentages for each account in
the financial statements. The basic formula for horizontal analysis is:
% change = (most recent period - previous period) / previous period

Annual Annual Annual Annual Annual Annual Annual Annual

Period Period Period Period Period Period Period Period
Description 2008 2009 2010 2011 2012 2013 2014 2015
Short Term Portion of LT Debt 8.56% 43.19% 17.99% 104.08% -27.92% 11.57% 11.57% -73.24%
Other Current Liabilities 25.01% -15.98% 126.70% -6.88% -7.50% 22.92% -2.81% -13.26%
Total Current Liabilities -10.20% -0.94% 54.66% -20.37% 15.48% -10.52% 10.52% -27.43%

Longterm Debt / Borrowings -21.99% -17.99% -58.06% 652.04% -27.07% -41.42% -78.89% -100.00%
Other Longterm Liabilities 24.78% 8.39% -20.55% 23.34% 0.00% -81.25% -100.00% #DIV/0!
Total Non Current Liabilities 13.46% 4.00% -25.47% 69.76% -8.86% -70.83% -88.91% -100.00%

Growth in Total Liabilities -4.48% 0.48% 30.83% -5.10% 8.10% -25.93% 0.51% -28.24%
Home Wksh2 Vertical Analysis for
Wksh3 Wksh4 Swan Sweets Pvt. Ltd.
Wksh5 Wksh6
Wksh7 Wksh8 Vertical analysis expresses financial statements as percentages. On the Balance Sheet,
Wksh9 active Total Assets is assigned 100% and on the Income Statement, Total Revenues is assigned 100%.
Wksh11 Wksh12
Wksh13 Wksh14
Wksh15 Wksh16 expressed in percentages
Annual Annual Annual Annual Annual Annual Annual Annual
Period Period Period Period Period Period Period Period
Ref Account Title 2008 2009 2010 2011 2012 2013 2014 2015

10-1 Cash and Cash Equivalents 2.33% 9.62% 0.69% 1.24% 1.48% 1.51% 1.75% 1.74%
10-2 Short Term Marketable Securities 0.00% 0.00% 0.00% 0.00% 0.00%
10-3 Accounts Receivable 25.72% 19.81% 20.29% 27.03%
10-4 Inventory 18.47% 18.51% 14.59% 7.31%
10-5 Other Current Assets 9.79% 4.88% 15.43% 11.77%
10-6 Current Assets 56.31% 52.81% 50.83% 46.97%

10-6 Net Fixed Assets 42.17% 45.52% 48.68% 52.58%

10-7 Longterm Investments 0.31% 0.43% 0.49% 0.45%
10-8 Investments in Other Companies 0.00% 0.00% 0.00% 0.00%
10-9 Intangibles and Other Assets 1.22% 1.24% 0.00% 0.00%
10-10 Non Current Assets 43.69% 47.19% 49.17% 53.03%

10-11 Total Assets 100.00% 100.00% 100.00% 100.00%

10-12 Accounts Payable 25.34% 21.95% 25.98% 10.26%

Balance Sheet

10-13 Short Term Borrowings 8.30% 12.88% 10.37% 13.52%

10-14 Short Term Portion of LT Debt 0.82% 1.20% 1.05% 1.98%
10-15 Other Current Liabilities 9.08% 7.74% 13.09% 11.21%
10-16 Total Current Liabilities 43.54% 43.77% 50.50% 36.97%

10-17 Longterm Debt / Borrowings 2.92% 2.43% 0.76% 5.26%

10-18 Other Longterm Liabilities 14.63% 16.09% 9.54% 10.82%
10-19 Total NonCurrent Liabilities 17.55% 18.52% 10.30% 16.08%

10-20 Total Liabilities 61.09% 62.29% 60.80% 53.05%

10-21 Preferred Equity 0.00% 0.00% 0.00% 0.00%

10-22 Common Equity 19.43% 19.72% 14.71% 16.90%
10-23 Additional Paid in Capital 0.00% 0.00% 0.00% 0.00%
10-24 Retained Earnings 19.49% 17.99% 24.49% 30.05%
10-25 Adj for Foreign Currency Transl 0.00% 0.00% 0.00% 0.00%
10-26 Treasury Stock 0.00% 0.00% 0.00% 0.00%
10-27 Total Equity 38.91% 37.71% 39.20% 46.95%
 10-28 Total Liabilities & Equity 100.00% 100.00% 100.00% 100.00%

10-29 Total Revenues 100.00% 100.00% 100.00% 100.00%

10-30 Cost of Goods Sold 72.81% 77.25% 75.91% 77.67%

Income Statement

10-31 Gross Profit 26.77% 22.40% 24.01% 22.23%

10-32 Operating Expenses 17.67% 21.95% 16.15% 16.22%

10-33 Non Operating Expenses 0.87% 1.94% 0.51% 1.54%

10-34 Income Before Extra Ord Items 7.06% -1.14% 5.13% 3.45%

10-35 Net Income 7.06% -1.14% 5.13% 3.45%

10-36 Accounts Receivable to Revenues 19.86% 12.65% 9.40% 12.39%

Current to Revenues

10-37 Inventory to Revenues 14.26% 11.82% 6.76% 3.35%

10-38 Other Current Assets to Revenues 7.56% 3.12% 7.15% 5.39%
10-39 Current Assets to Revenues 43.49% 33.74% 23.56% 21.52%

10-40 Accounts Payable to Revenues 19.57% 14.03% 12.04% 4.70%

10-41 Short Term Borrowings to Revenues 6.41% 8.23% 4.81% 6.20%
10-42 Other Current Liabilities to Revenues 7.01% 4.95% 6.07% 5.14%
10-43 Current Liabilities to Revenues 33.62% 27.96% 23.40% 16.94%

Graphs for the Vertical Analysis appear below:

% o f T o ta l A s s e ts

Breakdown of Current Assets

60.00%
50.00%
Other Current Assets
40.00%
Inventory
30.00%
Accounts Receivable
20.00%
Short Term Marketable
10.00% Securities
 Inventory
30.00%
Accounts Receivable
20.00%
Short Term Marketable
10.00% Securities

0.00% Cash and Cash

2008 2009 2010 2011Equivalents
Periods

Current / NonCurrent Assets

% of Total
120.00%

100.00%

80.00% Non Current

Assets
60.00%
Current Assets
40.00%

20.00%

0.00%
2008 2009 2010 2011
Periods

Breakdown of Current Liabilities

% of Total

60.00%
50.00%
40.00%
30.00%
Other Current Liabilities
20.00%
Short Term Portion of LT
10.00% Debt

0.00% Short Term Borrowings

08 09 10 11
20 20 20 20 Accounts Payable
 0.00% Short Term Borrowings
08 09 10 11
20 20 20 20 Accounts Payable

Periods

Liab & Equity to Total Assets

% of Total
120.00%
100.00%
80.00%
Total Equity
60.00% Total Liabilities

40.00%
20.00%
0.00%
2008 2009 2010 2011
Periods
% to T o ta l R e v e n u e s

Major Cost Breakdown

120.00%
100.00%
Non Operating
Expenses
80.00%
Operating
60.00% Expenses

40.00% Cost of Goods

Sold
20.00%
0.00%
2008 2009 2010 2011
Periods
 2008 2009 2010 2011
Periods

O p e r a tin g C a s h F lo w
The following graph is created directly from the Cash Flow Statement:

Operating Cash Flow Trend

$150 Increase
(Decrease) Current
$100 Liab
(Increase)
$50 Decrease Current
Assets
$0 (Gain) Loss on
Sale of Assets
($50) (Increase)
Decrease Defer
Taxes

Periods
Cost of Goods Sold 72.81% 77.25% 75.91% 77.67%
Operating Expenses 17.67% 21.95% 16.15% 16.22%
Non Operating Expenses 0.87% 1.94% 0.51% 1.54%
 Annual Annual Annual Annual Annual
Period Period Period Period Period
(Actual) (Actual) (Actual) (projected) (projected)
Enter Your Forecast Periods => 2007 2008 2009 2010 2011

Pro Forma Income Statement

Gross Revenues 483 663 790 1,466 1,612

Growth Assumptions 40.00% 37.25% 19.26% 85.42% 10.00%

Cost of Goods Sold (365) (501) (598) (1,108) (1,219)

Growth Assumptions 75.64% 75.64% 75.64% 75.64% 75.64%

Operating Expenses (91) (125) (149) (277) (305)

Growth Assumptions 18.90% 18.90% 18.90% 18.90% 18.90%

NonOperating Expenses 1 (6) (15) (8)

ExtraOrdinary Items 0 0 0 0 0

Net Income 27 30 28 73 88

Pro Forma Cash Flow Statement

Sources of Operating Cash Flow:

Net Income 27 30 28 73 88
Depreciation and Amortization 470 490 500 520 550
(Increase) Decrease Defer Taxes 0 0 0 0 0
(Gain) Loss on Sale of Assets 15 9 2 3 6
(Increase) Decrease Current Assets 217 (49) (34) (182) (40)
Increase (Decrease) Current Liab (104) 63 45 236 51

Operating Cash Flow 624 544 540 650 656

Investment Sources of Cash Flow:

Planned Sale of Assets 100 60 20 25 35
Planned Sale of Investments 2,200 2,100 1,900 1,800 1,700
Other Investment Sources to be used 0 0 0 0 0
Total Investment Sources of Cash 2,300 2,160 1,920 1,825 1,735

Planned Investments:
Capital Expenditures (3,500) (3,000) (3,100) (2,700) (2,600)
Acquisitions in Other Co's (500) (750) (1,200) (650) (350)
Purchases of Investments (3,000) (3,500) (4,500) (6,000) (7,000)
Total Investment Applications of Cash (7,000) (7,250) (8,800) (9,350) (9,950)

Cash Flow from Financing Activities:

Proceeds from Loans & Debt 1,300 1,000 950 750 650
 Annual Annual Annual Annual Annual
Period Period Period Period Period
(Actual) (Actual) (Actual) (projected) (projected)
Enter Your Forecast Periods => 2007 2008 2009 2010 2011

Proceeds from Minority Interest 20 60 80 90 100

Other Financing Activities 0 0 0 0 0
Total Financing Sources of Cash 1,320 1,060 1,030 840 750

Cash Flow Applied for Financing:

Payments on Loans & Debt (1,500) (1,000) (600) (500) (500)
Dividends Paid to Shareholders (2,500) (3,000) (4,000) (5,500) (7,000)
Purchase / Retire Stock (2,000) (2,000) (1,500) (1,000) (500)
Other Financing Activities 0 0 0 0 0
Total Financing Applications of Cash (6,000) (6,000) (6,100) (7,000) (8,000)

Total Change to Cash (8,756) (9,486) (11,410) (13,035) (14,809)

Beginning Cash Balance 6 (8,749) (18,235) (29,645) (42,681)

Forecasted Ending Balance (8,749) (18,235) (29,645) (42,681) (57,490)

Pro Forma Balance Sheet

Cash and Cash Equivalents (8,749) (18,235) (29,645) (42,681) (57,490)

Short Term Marketable Securities 0 0 0 0 0
Accounts Receivable 48 66 79 147 161
Inventory 39 53 63 117 129
Other Current Assets 31 43 51 95 105
Total Current Assets (8,631) (18,073) (29,452) (42,322) (57,095)

Fixed Assets 4,038 7,038 10,138 12,838 15,438

Accumulated Depreciation (619) (1,109) (1,609) (2,129) (2,679)
Net Fixed Assets 3,419 5,929 8,529 10,709 12,759
Longterm Investments 803 2,203 4,803 9,003 14,303
Investments in Other Companies 500 1,250 2,450 3,100 3,450
Intangibles and Other Assets 200 240 320 400 650
Total Non Current Assets 4,922 9,622 16,102 23,212 31,162

Total Assets (3,709) (8,451) (13,350) (19,110) (25,933)

Accounts Payable 82 113 134 249 274

Short Term Borrowings 58 80 95 176 193
Short Term Portion of LT Debt 30 30 25 20 15
Other Current Liabilities 29 40 47 88 97
Total Current Liabilities 199 262 302 533 579

Longterm Debt / Borrowings (161) (161) 189 439 589

Other Longterm Liabilities 700 750 800 800 800
Total Non Current Liabilities 539 589 989 1,239 1,389
 Annual Annual Annual Annual Annual
Period Period Period Period Period
(Actual) (Actual) (Actual) (projected) (projected)
Enter Your Forecast Periods => 2007 2008 2009 2010 2011

Total Liabilities 738 851 1,291 1,772 1,968

Preferred Equity 0 0 0 0 0
Common Equity 2,200 2,200 2,200 2,200 2,200
Additional Paid in Capital 5,700 5,700 5,700 5,700 5,700
Retained Earnings (2,251) (5,220) (9,193) (14,620) (21,532)
Adj for Foreign Currency Transl (5,000) (4,000) (2,500) (1,500) (500)
Treasury Stock (2,000) (4,000) (5,500) (6,500) (7,000)
Total Equity (1,351) (5,320) (9,293) (14,720) (21,132)

External Financing Required (EFR) (3,096) (3,981) (5,347) (6,161) (6,769)

Home Wksh2 ProForma Financials (Linear Trend Model)
Wksh3 Wksh4 Swan Sweets Pvt. Ltd.
Wksh5 Wksh6
Wksh7 Wksh8 A set of pro forma (forecasted) financial statements are generated using the results of
Wksh9 Wksh10 the historical analysis in the previous worksheets. A statistical method known as
Wksh11 active linear regression is used to predict future values. If you have important assumptions
Wksh13 Wksh14 that are important to the forecast, then these assumptions should over-ride the
Wksh15 Wksh16 linear calculations since we want our forecast to be as accurate as possible.
Key Point => If your historical information has gradual trends, then linear regression
is an appropriate model for forecasting. However, if your historical information has
distinct steps up or down, then you should consider using a smoothing model .

Before we adopt a regression model, it's a good idea to generate a scatter graph of the actual data
and observe if there is a clear trend for fitting a straight regression line into the data:
Total R evenues

Total Revenues

2,000.00

1,500.00
Total Revenues
1,000.00

500.00

-
2007 2008 2009 2010 2011 2012
Periods

The calculation of linear values is determined by defining the slope of the line and the y intercept:
Order Total Rev Linear
Formula for Linear Trendline: Year variable x actual y Value y
2007 1 486 394
y=(m*x)+b 2008 2 667 700
2009 3 794 1,006
m: slope of line 2010 4 1,467 1,311
x: independent variable 2011 5 1,614 1,617
b: y intercept 2001 6 1,923
2002 7 2,228
2003 8 2,534
2004 9 2,840
2005 10 3,145

The degree of linear fit with the actual data can be expressed as R Square 0.9224

Annual Annual Annual Annual

Period Period Period Period
 2007 2008 2009 2010

Pro Forma Income Statement

12-1 Gross Revenues 394 700 1,006 1,311

12-2 Cost of Goods Sold (283) (525) (766) (1,007)

12-3 Operating Expenses (43) (89) (134) (179)

12-4 Operating Income 67 87 106 125

12-5 Non Operating Expenses (6) (15) (25) (34)

4-25 Extra Ordinary Items 0 0 0 0

Net Income 62 72 81 91

Pro Forma Cash Flow Statement

Sources of Operating Cash Flow:

Net Income 62 72 81 91
Depreciation and Amortization 470 490 500 520
(Increase) Decrease Defer Taxes 0 0 0 0
(Gain) Loss on Sale of Assets 15 9 2 3
(Increase) Decrease Current Assets 241 (83) (83) (83)
Increase (Decrease) Current Liab (135) 107 107 107

Operating Cash Flow 652 595 608 639

Investment Sources of Cash Flow:

Planned Sale of Assets 100 60 20 25
Planned Sale of Investments 2,200 2,100 1,900 1,800
Other Investment Sources to be used 0 0 0 0
Total Investment Sources of Cash 2,300 2,160 1,920 1,825

Planned Investments:
Capital Expenditures (3,500) (3,000) (3,100) (2,700)
Acquisitions (500) (750) (1,200) (650)
Purchases of Investments (3,000) (3,500) (4,500) (6,000)
Total Investment Applications of Cash (7,000) (7,250) (8,800) (9,350)

Cash Flow from Financing Activities:

Proceeds from Loans & Debt 1,300 1,000 950 750
Proceeds from Minority Interest 20 60 80 90
Other Financing Activities 0 0 0 0
Total Financing Sources of Cash 1,320 1,060 1,030 840

Cash Flow Applied for Financing:

Payments on Loans & Debt (1,500) (1,000) (600) (500)
Dividends Paid to Shareholders (2,500) (3,000) (4,000) (5,500)
Purchase / Retire Stock (2,000) (2,000) (1,500) (1,000)
Other Financing Activities 0 0 0 0
Total Financing Applications of Cash (6,000) (6,000) (6,100) (7,000)

Total Change to Cash (8,728) (9,435) (11,342) (13,046)

Beginning Cash Balance 6 (8,721) (18,156) (29,499)

Forecasted Ending Balance (8,721) (18,156) (29,499) (42,545)

Pro Forma Balance Sheet

Cash and Cash Equivalents (8,721) (18,156) (29,499) (42,545)

Short Term Marketable Securities 0 0 0 0
Accounts Receivable 39 70 101 131
Inventory 32 56 80 105
Other Current Assets 26 45 65 85
Total Current Assets (8,625) (17,985) (29,252) (42,224)

Fixed Assets 4,038 7,038 10,138 12,838

Accumulated Depreciation (619) (1,109) (1,609) (2,129)
Net Fixed Assets 3,419 5,929 8,529 10,709
Longterm Investments 803 2,203 4,803 9,003
Investments in Other Companies 500 1,250 2,450 3,100
Intangibles and Other Assets 200 240 320 400
Total Non Current Assets 4,922 9,622 16,102 23,212

Total Assets (3,703) (8,363) (13,150) (19,012)

Accounts Payable 67 119 171 223

Short Term Borrowings 47 84 121 157
Short Term Portion of LT Debt 30 30 25 20
Other Current Liabilities 24 42 60 79
Total Current Liabilities 168 275 377 479

Longterm Debt / Borrowings (161) (161) 189 439

Other Longterm Liabilities 700 750 800 800
Total Non Current Liabilities 539 589 989 1,239

Total Liabilities 707 864 1,366 1,718

Preferred Equity 0 0 0 0
Common Equity 2,200 2,200 2,200 2,200
Additional Paid in Capital 5,700 5,700 5,700 5,700
Retained Earnings (2,216) (5,145) (9,063) (14,472)
Adj for Foreign Currency Transl (5,000) (4,000) (2,500) (1,500)
Treasury Stock (2,000) (4,000) (5,500) (6,500)
Total Equity (1,316) (5,245) (9,163) (14,572)
External Financing Required (EFR) (3,094) (3,982) (5,353) (6,157)
 of the actual data

d the y intercept:
Slope Intercept
m factor b factor
305.68 88.47

Annual
Period
2011

1,617

(1,248)

(224)

145

(44)

101

101
550
0
6
(83)
107

681

35
1,700
0
1,735

(2,600)
(350)
(7,000)
(9,950)

650
100
0
750
 (500)
(7,000)
(500)
0
(8,000)

(14,784)

(42,545)
(57,329)

(57,329)
0
162
129
105
(56,933)

15,438
(2,679)
12,759
14,303
3,450
650
31,162

(25,770)

275
194
15
97
581

589
800
1,389

1,970

0
2,200
5,700
(21,371)
(500)
(7,000)
(20,971)
(6,769)
Home Wksh2 ProForma Financials (Exponential Smoothing / Weighted Moving Average)
Wksh3 Wksh4 Swan Sweets Pvt. Ltd.
Wksh5 Wksh6
Wksh7 Wksh8 A set of pro forma (forecasted) financial statements are generated using the results of
Wksh9 Wksh10 the historical analysis in the previous worksheets. A statistical method known as
Wksh11 Wksh12 exponential smoothing is used to plot a trend over historical data. Additionally, we
active Wksh14 can use a weighted moving average to forecast future periods.
Wksh15 Wksh16 Key Point => If you have a general upward historical trend, weighted average will tend
to underestimate forecasted values and vice versa (downward trend = overestimate).

Exponential Smoothing and Weighted Moving Averages for Total Revenues:

Years => 1996 1997 1998
Total Revenues - Historical 486 667 794
Total Revenues - Exponential 486 486 667
Total Revenues - Wt Moving Avg 11,105 15,230 18,890

Smoothing Factor must be between 0 and 1 0 1 Total weights should add

Set Smoothing Factor 1.00
Assign weights to appropriate periods 0.00% 1.50% 4.50%

Find the Optimal Smoothing Factor:

Total Exponent
Revenues Amounts Difference
486 486 0
667 486 181
794 667 127
1,467 794 673
1,614 1,467 147
Mean Squared Error

Find the Optimal Moving Weights:

Total Weighted
Revenues Amounts Difference
486 11,105 (10,619)
667 15,230 (14,563)
794 18,890 (18,096)
1,467 21,605 (20,138)
1,614 1,184 430
Mean Squared Error
Total Revenues

Exponential Comparison
1,800
1,600
1,400 Total Revenues -
1,200 Historical

1,000 Total Revenues -

Exponential
800
Total Revenues -
 Total Reven
Exponential Comparison
1,800
1,600
1,400 Total Revenues -
1,200 Historical

1,000 Total Revenues -

Exponential
800
Total Revenues -
600
Wt Moving Avg
400
200
0
2007 2008 2009 2010 2011
Periods

Annual Annual Annual

Period Period Period
2007 2008 2009
Pro Forma Income Statement

Gross Revenues 1,512 1,535 1,529

Cost of Goods Sold (1,144) (1,165) (1,177)

Operating Expenses (286) (276) (277)

Operating Income 83 93 76

NonOperating Expenses (3,200) (3,200) (3,600)

ExtraOrdinary Items 650 650 650

Net Income (2,467) (2,457) (2,874)

Pro Forma Cash Flow Statement

Sources of Operating Cash Flow:

Net Income (2,467) (2,457) (2,874)
Depreciation and Amortization 470 490 500
(Increase) Decrease Defer Taxes 0 0 0
(Gain) Loss on Sale of Assets 15 9 2
(Increase) Decrease Current Assets (61) (6) 1
Increase (Decrease) Current Liab 256 8 (2)

Operating Cash Flow (1,787) (1,956) (2,373)

Investment Sources of Cash Flow:

Planned Sale of Assets 100 60 20
Planned Sale of Investments 2,200 2,100 1,900
Other Investment Sources to be used 0 0 0
Total Investment Sources of Cash 2,300 2,160 1,920

Planned Investments:
Capital Expenditures (3,500) (3,000) (3,100)
Acquisitions (500) (750) (500)
Purchases of Investments (2,000) (3,000) (3,000)
Total Investment Applications of Cash (6,000) (6,750) (6,600)

Cash Flow from Financing Activities:

Proceeds from Loans & Debt 1,300 2,000 3,000
Proceeds from Minority Interest 20 60 80
Other Financing Activities 0 0 0
Total Financing Sources of Cash 1,320 2,060 3,080

Cash Flow Applied for Financing:

Payments on Loans & Debt (1,500) (1,800) (2,500)
Dividends Paid to Shareholders (2,500) (3,000) (4,000)
Purchase / Retire Stock 0 0 0
Other Financing Activities 0 0 0
Total Financing Applications of Cash (4,000) (4,800) (6,500)

Total Change to Cash (8,167) (9,286) (10,473)

Beginning Cash Balance 6 (8,161) (17,447)

Forecasted Ending Balance (8,161) (17,447) (27,920)

Pro Forma Balance Sheet

Cash and Cash Equivalents (8,161) (17,447) (27,920)

Short Term Marketable Securities 0 0 0
Accounts Receivable 151 153 153
Inventory 121 123 122
Other Current Assets 98 100 99
Total Current Assets (7,791) (17,071) (27,545)

Fixed Assets 4,038 7,038 10,138

Accumulated Depreciation (619) (1,109) (1,609)
Net Fixed Assets 3,419 5,929 8,529
Longterm Investments (197) 703 1,803
Investments in Other Companies 500 1,250 1,750
Intangibles and Other Assets 75 100 150
Total Non Current Assets 3,797 7,982 12,232

Total Assets (3,993) (9,089) (15,313)

Accounts Payable 257 261 260

Short Term Borrowings 181 184 184
Short Term Portion of LT Debt 30 30 25
Other Current Liabilities 91 92 92
Total Current Liabilities 559 567 560

Longterm Debt / Borrowings (161) 39 539

Other Longterm Liabilities 700 750 800
Total Non Current Liabilities 539 789 1,339

Total Liabilities 1,098 1,356 1,899

Preferred Equity 0 0 0
Common Equity 2,200 2,200 2,200
Additional Paid in Capital 5,700 5,700 5,700
Retained Earnings (2,278) (5,278) (9,278)
Adj for Foreign Currency Transl (5,000) (3,500) (1,000)
Treasury Stock 0 0 0
Total Equity 622 (878) (2,378)

External Financing Required (EFR) (5,714) (9,567) (14,834)

ving Average)

1999 2000 2001 2002 2003 2004 2005

1,467 1,614
794 1,467
21,605 1,184 1,512 1,535 1,529 1,532 1,531

Total weights should add up to => 100.00%

34.50% 59.50% 100.00%

Square
0
32,620
16,232
453,103
21,611
104,713

Square
112,764,514
212,094,142
327,466,954
405,535,764
184,881
211,609,251

Revenues -
orical
Revenues -
onential
Revenues -
 Revenues -
orical
Revenues -
onential
Revenues -
Moving Avg

Annual Annual
Period Period
2010 2011

1,532 1,531

(1,176) (1,189)

(248) (248)

108 94

(3,600) (4,000)

700 700

(2,792) (3,206)

(2,792) (3,206)
520 550
0 0
3 6
(1) 0
1 (0)

(2,269) (2,651)

25 35
1,800 1,700
 0 0
1,825 1,735

(3,900) (4,600)
0 0
(1,000) (1,000)
(4,900) (5,600)

4,500 7,000
90 100
0 0
4,590 7,100

(4,000) (6,000)
(4,000) (3,000)
0 0
0 0
(8,000) (9,000)

(8,754) (8,416)

(27,920) (36,674)
(36,674) (45,089)

(36,674) (45,089)
0 0
153 153
123 122
100 99
(36,298) (44,714)

14,038 18,638
(2,129) (2,679)
11,909 15,959
1,003 303
1,750 1,750
150 100
14,812 18,112

(21,486) (26,602)

260 260
184 184
20 15
 92 92
556 551

1,039 2,039
800 800
1,839 2,839

2,395 3,390

0 0
2,200 2,200
5,700 5,700
(13,278) (16,278)
0 0
0 0
(5,378) (8,378)

(18,504) (21,614)
Home Wksh2 Scenario Analysis for
Wksh3 Wksh4 Swan Sweets Pvt. Ltd.
Wksh5 Wksh6
Wksh7 Wksh8 We can copy our forecast into a new worksheet and do scenario analysis and goal-seek analysis.
Wksh9 Wksh10 Although Microsoft Excel includes Scenario Manager, it can be easier and quicker to simply do our
Wksh11 Wksh12 scenario analysis manually. We can use Goal Seek to find a value for a cell given a corresponding
Wksh13 active formula in another cell.
Wksh15 Wksh16
Annual Annual Annual
Period Period Period
2007 2008 2009

Pro Forma Income Statement (Simple Projection Method)

Scenario => Non Operating Expenses will decline by $ 100,000 in year 2003 and again in year 2005:

Gross Revenues 483 663 790

Cost of Goods Sold (365) (501) (598)
Operating Expenses (91) (125) (149)
NonOperating Expenses 1 (6) (3,100)
ExtraOrdinary Items 0 0 0
Net Income 27 30 -3,057

Instead of copying our forecast into this worksheet, we can simply do scenario analysis directly in
the forecast itself.

Pro Forma Income Statement (Linear Trend Method)

Goal Seek => What total revenues are required if Net Income must be $ 13.5 million in Year 2004?

Gross Revenues 32,064 35,940 39,816

Cost of Goods Sold (11,607) (12,847) (14,087)
Operating Expenses (7,750) (8,693) (9,636)
Non Operating Expenses (3,549) (4,088) (4,627)
Extra Ordinary Items 271 271 271
Net Income (formula cells) 9,430 10,584 11,738

Do not change formula cells (goals) to

when using Goal Seek (Tools > Goal

This is the target cell that Goal Seek i

to change per the value 13,500 in cel
ysis and goal-seek analysis.
and quicker to simply do our
a cell given a corresponding

Annual Annual
Period Period
2010 2011

ar 2003 and again in year 2005:

1,466 1,612
(1,108) (1,219)
(277) (305)
(3,100) (3,000)
0 0
-3,020 -2,912

scenario analysis directly in

e $ 13.5 million in Year 2004?

44,301 47,569
(15,327) (16,567)
(10,579) (11,522)
(5,166) (5,705)
271 271
13,500 14,046

Do not change formula cells (goals) to values

when using Goal Seek (Tools > Goal Seek)

This is the target cell that Goal Seek is seeking

o change per the value 13,500 in cell G34
 Worst Case

-5752.08691
-3964.02317
-1096.6
24.6

Page 59
Home Wksh2 Budget Analysis for
Wksh3 Wksh4 Swan Sweets Pvt. Ltd.
Wksh5 Wksh6
Wksh7 Wksh8 Once we complete our forecast, we can summarize and review it before finalizing it
Wksh9 Wksh10 into the form of budgets. We also need to summarize our assumptions that should
Wksh11 Wksh12 go into our final budget. We can start our budget process by reviewing the different
Wksh13 Wksh14 revenue forecast:
active Wksh16

Annual Annual Annual

Period Period Period
2007 2008 2009

Summarize Revenue Forecast:

Simple Projection Model 483 663 790
Linear Trend Model 394 700 1,006
Wt Moving Avg Model 1,512 1,535 1,529
Declining Growth Model 1,743 1,848 1,922
Historical Data 486 667 794

Projection using declining growth rates:

Gross Revenues 1,743 1,848 1,922

Total Revenues

Forecast Comparisons
35,000
30,000
Simple Projection
25,000 Model

20,000 Linear Trend Model

15,000 Wt Moving Avg

Model
10,000
Declining Growth
5,000 Model

Historical Data
0
2007 2008 2009 2010 2011
Periods

In addition to using linear models for forecasting, we can apply several non-linear (curve) models:
Logarithmic - Used when rate of change in data suddenly shifts upward or downward.
Power - Used when rate of change in data occurs at a specific rate.
Exponential - Used when rate of change is increasing or decreasing at ever higher rates.
Polynomial - Used when rate of change fluctuates with no pattern.

Logarithmic Trend
Actual Predicted
Formula for Logarithmic Trendline x factor Values Value y
1 486 (323)
y = ( c * LN (x)) - b 2 667 171
3 794 461
LN: Natural Logarithm 4 1,467 666
5 1,614 825
6 955
7 1,065
8 1,160
9 1,244
10 1,319

Power Trendline
Actual Predicted
y = b * x^c x factor Values Value y
1 486 434
2 667 739
3 794 1,009
4 1,467 1,259
5 1,614 1,495
6 1,720
7 1,936
8 2,146
9 2,349
10 2,547

Exponential Trendline
Actual Predicted
x factor Values Value y
y = b * EXP ( c * x ) 1 486 478
2 667 658
3 794 906
4 1,467 1,246
5 1,614 1,714
6 2,358
7 3,244
8 4,462
9 6,139
10 8,446

Polynomial Trendline
Actual Predicted
y = (c2 * x^2) + (c1 * x^1) + b x factor Values Value y
1 486 463
 2 667 666
3 794 937
4 1,467 1,277
5 1,614 1,685
6 2,162
7 2,707
8 3,320
9 4,002
10 4,752

Summarize Non Linear Curves on Graph:

1996 1997 1998
Logarithmic Trendline (323) 171 461
Power Trendline 434 739 1,009
Exponential Trendline 478 658 906
Polynomial Trendline 463 666 937
Actual Revenues 486 667 794
Total Revenues

Non Linear Trends

9,000
8,000
7,000 Logarithmic
Trendline
6,000
5,000 Power Tren
4,000
Exponentia
3,000 Trendline
2,000
1,000 Polynomial
0 Trendline
(1,000) Actual Reve

Periods
Variance Analysis of Past Budgets:

Accuracy in the budget process should be examined to determine the degree of error or
variance in the budget process. If the variance is high, this indicates a need to improve
planning techniques within the company. TBD: To be Determined

2007 2008 2009

Income Statement Items
Total Revenues - Budgeted 10,500 14,500 22,500
Total Revenues - Actual 486 667 794
% difference from actual 2061% 2075% 2734%

Cost of Goods Sold - Budgeted (4,500) (6,500) (8,648)

Cost of Goods Sold - Actual (362) (485) (613)
% difference from actual 1143% 1239% 1310%

Operating Income - Budgeted 3,100 4,900 9,000

Operating Income - Actual 14 63 6
% difference from actual 21515% 7621% 142202%

Net Income - Budgeted 2,100 4,100 6,500

Net Income - Actual 6 47 (9)
% difference from actual 32360% 8612% -71895%

Balance Sheet Items

Current Assets - Budgeted 3,450 4,400 6,250
Current Assets - Actual 279 290 268
% difference from actual 1136% 1418% 2233%

NonCurrent Assets - Budgeted 10,900 14,000 22,000

NonCurrent Assets - Actual 8 225 239
% difference from actual 138827% 6125% 9091%

Current Liabilities - Budgeted 3,750 5,600 8,200

Current Liabilities - Actual 250 224 222
% difference from actual 1403% 2399% 3594%

NonCurrent Liabilities - Budgeted 1,750 2,450 3,750

NonCurrent Liabilities - Actual 80 90 94
% difference from actual 2098% 2612% 3891%

Ratio Items
Current Ratio - Budgeted 0.92 0.79 0.76
Current Ratio - Actual 1.12 1.29 1.21
% difference from actual -18% -39% -37%

Total Asset Turnover - Budgeted 0.68 0.72 0.80

Total Asset Turnover - Actual 1.00 1.29 1.56
% difference from actual -32% -44% -49%
Gross Profit Margin - Budgeted 60% 60% 60%
Gross Profit Margin - Actual 25% 27% 22%
% difference from actual 140% 124% 168%

Net Profit Margin - Budgeted 19% 25% 28%

Net Profit Margin - Actual 1% 7% -1%
% difference from actual 1327% 254% -2555%

Debt to Common Equity - Budgeted 0.45 0.50 0.60

Debt to Common Equity - Actual 2.15 1.57 1.65
% difference from actual -79% -68% -64%

Return on Equity - Budgeted 20% 29% 32%

Return on Equity - Actual 4% 23% -5%
% difference from actual 374% 23% -808%

We can use specific measurements to track and control forecasting errors:

Mean Absolute Error - An absolute value of forecast errors, does not place weight on the
amount of the error. Calculated as the sum of (actual values - predicted values) / n.

Mean Square Error - Similar to Mean Absolute Error, but does place more emphasis on
the amount of error; i.e. an error of 8 is twice as significant as 4. Calculated as the
sum of (actual values - predicted values)^2 / n.

Root Mean Square Error - To make the Mean Square Error useful and comparable to the Mean
Absolute Error, we can take the square root of the Mean Square Error. We can then use this
as a guide to establish an error limit or standard for flagging unacceptable errors.
Actual Forecasted
Example: Total Revenues Period Revenues Revenues
n: total number of periods 1996 486 10,500
1997 667 14,500
1998 794 22,500
1999 1,467 28,500
2000 1,614 30,000
n => 5 Sum =>

Mean Absolute Error

Mean Square Error
Root Mean Sqr Error
Establish Error Limits
before finalizing it
ions that should
wing the different

Annual Annual
Period Period
2010 2011

1,466 1,612
1,311 1,617
1,532 1,531
1,951 31,000
1,467 1,614

1,951 31,000

Simple Projection
Model

Linear Trend Model

Wt Moving Avg
Model

Declining Growth
Model

Historical Data

veral non-linear (curve) models:

ward or downward.
ng at ever higher rates.

Slope Intercept
c factor b factor
713.04621 322.780516

Slope Intercept
c factor b factor
0.76890278 6.07233044
433.690194

< - calculate using c and b factor - >

Slope Intercept Predicted
c factor b factor ( c * x) EXP Value y
0.31898142 5.85160934 0.31898 1.3757258 478
347.793648 0.63796 1.8926214 658
0.95694 2.603728 906
1.27593 3.5820156 1,246
1.59491 4.9278711 1,714
1.91389 6.7793993 2,358
2.23287 9.3265942 3,244
2.55185 12.830836 4,462
2.87083 17.651711 6,139
3.18981 24.283914 8,446

c2 c1 b
34.1796806 100.605625 327.727724
 1999 2000 2001 2002 2003 2004 2005
666 825 955 1,065 1,160 1,244 1,319
1,259 1,495 1,720 1,936 2,146 2,349 2,547
1,246 1,714 2,358 3,244 4,462 6,139 8,446
1,277 1,685 2,162 2,707 3,320 4,002 4,752
1,467 1,614

Trends

Logarithmic
Trendline

Power Trendline

Exponential
Trendline

Polynomial
Trendline

Actual Revenues
 the degree of error or
es a need to improve

(Wksht 16)
2010 2000 2001

28,500 30,000 30,500

1,467 1,614 TBD
1843% 1759% #VALUE!

(9,650) (11,000) (23,069)

(1,114) (1,254) TBD
766% 777% #VALUE!

11,000 10,500 1,667

116 99 TBD
9342% 10546% #VALUE!

9,000 9,300 (1,493)

75 56 TBD
11855% 16606% #VALUE!

7,500 7,900 159

346 347 TBD
2070% 2174% #VALUE!

27,500 29,500 5,952

334 392 TBD
8126% 7423% #VALUE!

9,050 9,400 10,715

343 273 TBD
2536% 3338% #VALUE!

4,900 5,100 1,339

70 119 TBD
6897% 4190% #VALUE!

0.83 0.80 0.01

1.01 1.27 TBD
-18% -37% #VALUE!

0.80 0.79 4.99

2.16 2.18 TBD
-63% -64% #VALUE!
 60% 60% 0.24
24% 22% TBD
150% 170% #VALUE!

30% 28% -5%

5% 3% TBD
485% 712% #VALUE!

0.65 0.55 2.92

1.55 1.13 TBD
-58% -51% #VALUE!

35% 30% -36%

38% 28% TBD
-7% 8% #VALUE!

not place weight on the

dicted values) / n.

ce more emphasis on
alculated as the

and comparable to the Mean

rror. We can then use this
eptable errors. Is Error
Error Outside
Error Absolute Squared Limit?
(10,014) 10,014 ### No
(13,833) 13,833 ### No
(21,706) 21,706 ### No
(27,033) 27,033 ### No
(28,386) 28,386 ### No
(100,972) 100,972 ### Yes

Mean Absolute Error 20,194

Mean Square Error ###
Root Mean Sqr Error 45,156
Establish Error Limits 45,156
Home Wksh2 Final Budgets for
Wksh3 Wksh4 Swan Sweets Pvt. Ltd.
Wksh5 Wksh6
Wksh7 Wksh8 Now that we have analyzed our historical data and placed it into a set of
Wksh9 Wksh10 forecast, we can pull it all together with our assumptions for a final budget.
Wksh11 Wksh12 Many of these assumptions should be included in our forecast for improved
Wksh13 Wksh14 accuracy. However, we need to fine tune and finalize all assumptions
Wksh15 active so that we can produce a final finished budget for planning purposes.

Budget
Period
Ref 2001

Operating Plan

16-1 Total Revenues 30,500

16-2 Cost of Goods Sold (23,069)
16-3 Operating Expenses (5,764)
16-4 Operating Income 1,667

16-5 Interest Expenses (310)

16-6 Income Taxes (3,300)
16-7 Other Non Operating Expenses (200)

16-8 Earnings Before Extra Ord Items (2,143)

16-9 Extra Ordinary Items 650

16-10 Net Income (1,493)

Financial Plan

Budgeted Cash Flows

16-11 Net Income (1,493)

16-12 Depreciation and Amortization 470
16-13 (Increase) Decrease Defer Taxes 0
16-14 (Gain) Loss on Sale of Assets 15
16-15 (Increase) Decrease Current Assets (7,888)
16-16 (Increase) Decrease Current Liab 10,402

16-17 Operating Cash Flow 1,505

Investment Sources of Cash:

16-18 Planned Sale of Assets 100
16-19 Planned Sale of Investments 2,200
16-20 Other Investment Sources to be used 0
16-21 Total Investment Sources of Cash 2,300

Planned Investments:
16-22 Capital Expenditures (4,500)
16-23 Acquisitions in Other Co's (350)
16-24 Purchases of Investments (2,500)
16-25 Total Investment Applications of Cash (7,350)

Cash Flow from Financing Activities

16-26 Proceeds from Loans & Debt 1,450
16-27 Proceeds from Minority Interest 15
16-28 Other Financing Activities 0
16-29 Total Financing Sources of Cash 1,465

Cash Flow Applied for Financing:

16-30 Payments on Loans and Debt (1,250)
16-31 Dividends Paid to Shareholders (2,500)
16-32 Purchase / Retire Stock (1,500)
16-33 Other Financing Activities 0
16-34 Total Financing Applications of Cash (5,250)

16-35 Total Change to Cash (7,330)

16-36 Beginning Cash Balance 6

16-37 Forecasted Ending Balance (7,323)

Budgeted Balance Sheet

16-38 Cash and Cash Equivalents (7,323)

16-39 Short Term Marketable Securities 10
16-40 Accounts Receivable 3,050
16-41 Inventory 2,440
16-42 Other Current Assets 1,983
16-43 Total Current Assets 159

16-44 Fixed Assets 5,038

16-45 Accumulated Depreciation (619)
16-46 Net Fixed Assets 4,419
16-47 Longterm Investments 303
16-48 Investments in Other Companies 1,000
16-49 Intangibles and Other Assets 230
16-50 Total Non Current Assets 5,952

16-51 Total Assets 6,111

16-52 Accounts Payable 5,185

16-53 Short Term Borrowings 3,660
16-54 Short Term Portion of LT Debt 40
16-55 Other Current Liabilities 1,830
16-56 Total Current Liabilities 10,715

16-57 Longterm Debt / Borrowings 239

16-58 Other Longterm Liabilities 1,100
16-59 Total Non Current Liabilities 1,339
16-60 Total Liabilities 12,054

16-61 Preferred Stock 0

16-62 Common Equity 2,200
16-63 Additional Paid in Capital 5,700
16-64 Retained Earnings (3,771)
16-65 Adj for Foreign Currency Translation (5,000)
16-66 Treasury Stock (1,500)
16-67 Total Equity (2,371)

16-68 Total Liabilities and Equity 9,683

16-69 External Financing Required (3,571)

 a and placed it into a set of
ssumptions for a final budget.
ed in our forecast for improved
d finalize all assumptions
et for planning purposes.

Assumptions & Comments

Based on review of Pro Forma Financials, Marketing, etc.

Volume projections, production budgets, and vertical analysis
Average % of Sales per Vertical Analysis

Based on anticipated levels of debt and past history

Based on anticipated taxable income and effective rate
Provision for contingency was added on this line item

Per our Simple Model Forecast

Review of Simple Model Forecast and Capital Expenditure Budget

Per Simple Forecast Model

Same formula as used in forecast models
Same formula as used in forecast models

Per Simple Model Forecast

Per Simple Model Forecast

Budgeted $ 4.5 million in Capital Expenditure Budget

Per forecast, strategic plan, and other budgets
Per forecast, strategic plan, and other budgets

Per Financing Requirements and other budgets

Per historical financials and investment budget

Per forecast and other budgets

Per Simple Model Forecast
Per strategic plan and other budgets

Per above
Per historical financials
Same formula as used in forecast models
Same formula as used in forecast models
Same formula as used in forecast models

Same formula as used in forecast models

Same formula as used in forecast models

Same formula as used in forecast models

Per review of forecast and strategic plans
Per review of forecast and historical balances

Same formula as used in forecast models

Same formula as used in forecast models
Per review of forecast and historical information
Same formula as used in forecast models

Same formula as used in forecast models

Per review of historical information and expected growth rates.
Per Simple Model Forecast
Per Simple Model Forecast
Same formula as used in forecast models
Per Simple Model Forecast
Same formula as used in forecast models
 Calcuation of principal balance outstanding and yearly interest:
FOR THE NEW TERM LOAN
2010-2011
Opening EMI Interest Principal Closing Bal.

July 5,475,000.00 119,040.00 50,187.50 68,852.50 5,406,147.50

Aug. 5,406,147.50 119,040.00 49,556.35 69,483.65 5,336,663.85
Sep. 5,336,663.85 119,040.00 48,919.42 70,120.58 5,266,543.27
Oct. 5,266,543.27 119,040.00 48,276.65 70,763.35 5,195,779.92
Nov. 5,195,779.92 119,040.00 47,627.98 71,412.02 5,124,367.90
Dec 5,124,367.90 119,040.00 46,973.37 72,066.63 5,052,301.27
Jan. 5,052,301.27 119,040.00 46,312.76 72,727.24 4,979,574.03
Feb 4,979,574.03 119,040.00 45,646.10 73,393.90 4,906,180.13
March 4,906,180.13 119,040.00 44,973.32 74,066.68 4,832,113.45
1,071,360.00 428,473.45 642,886.55
2011-2012
Opening EMI Interest Principal Closing Bal.
April 4,832,113.45 119,040.00 44,294.37 74,745.63 4,757,367.82
May 4,757,367.82 119,040.00 43,609.21 75,430.79 4,681,937.03
June 4,681,937.03 119,040.00 42,917.76 76,122.24 4,605,814.78
July 4,605,814.78 119,040.00 42,219.97 76,820.03 4,528,994.75
Aug. 4,528,994.75 119,040.00 41,515.79 77,524.21 4,451,470.54
Sep. 4,451,470.54 119,040.00 40,805.15 78,234.85 4,373,235.68
Oct. 4,373,235.68 119,040.00 40,087.99 78,952.01 4,294,283.68
Nov. 4,294,283.68 119,040.00 39,364.27 79,675.73 4,214,607.94
Dec 4,214,607.94 119,040.00 38,633.91 80,406.09 4,134,201.85
Jan. 4,134,201.85 119,040.00 37,896.85 81,143.15 4,053,058.70
Feb 4,053,058.70 119,040.00 37,153.04 81,886.96 3,971,171.74
March 3,971,171.74 119,040.00 36,402.41 82,637.59 3,888,534.15
1,428,480.00 484,900.70 943,579.30
2012-2013
Opening EMI Interest Principal Closing Bal.
April 3,888,534.15 119,040.00 35,644.90 83,395.10 3,805,139.04
May 3,805,139.04 119,040.00 34,880.44 84,159.56 3,720,979.48
June 3,720,979.48 119,040.00 34,108.98 84,931.02 3,636,048.46
July 3,636,048.46 119,040.00 33,330.44 85,709.56 3,550,338.91
Aug. 3,550,338.91 119,040.00 32,544.77 86,495.23 3,463,843.68
Sep. 3,463,843.68 119,040.00 31,751.90 87,288.10 3,376,555.58
Oct. 3,376,555.58 119,040.00 30,951.76 88,088.24 3,288,467.34
Nov. 3,288,467.34 119,040.00 30,144.28 88,895.72 3,199,571.62
Dec 3,199,571.62 119,040.00 29,329.41 89,710.59 3,109,861.03
Jan. 3,109,861.03 119,040.00 28,507.06 90,532.94 3,019,328.09
Feb 3,019,328.09 119,040.00 27,677.17 91,362.83 2,927,965.26
March 2,927,965.26 119,040.00 26,839.68 92,200.32 2,835,764.94
1,428,480.00 375,710.80 1,052,769.20

2013-2014

Opening EMI Interest Principal Closing Bal.

April 2,835,764.94 119,040.00 25,994.51 93,045.49 2,742,719.46
May 2,742,719.46 119,040.00 25,141.60 93,898.40 2,648,821.05
June 2,648,821.05 119,040.00 24,280.86 94,759.14 2,554,061.91
July 2,554,061.91 119,040.00 23,412.23 95,627.77 2,458,434.15
Aug. 2,458,434.15 119,040.00 22,535.65 96,504.35 2,361,929.79
Sep. 2,361,929.79 119,040.00 21,651.02 97,388.98 2,264,540.81
Oct. 2,264,540.81 119,040.00 20,758.29 98,281.71 2,166,259.11
Nov. 2,166,259.11 119,040.00 19,857.38 99,182.62 2,067,076.48
Dec 2,067,076.48 119,040.00 18,948.20 100,091.80 1,966,984.68
Jan. 1,966,984.68 119,040.00 18,030.69 101,009.31 1,865,975.37
Feb 1,865,975.37 119,040.00 17,104.77 101,935.23 1,764,040.15
Mar 1,764,040.15 119,040.00 16,170.37 102,869.63 1,661,170.52
 1,428,480.00 253,885.57 1,174,594.43

2014-2015

Opening EMI Interest Principal Closing Bal.

April 1,661,170.52 119,040.00 15,227.40 103,812.60 1,557,357.91
May 1,557,357.91 119,040.00 14,275.78 104,764.22 1,452,593.69
June 1,452,593.69 119,040.00 13,315.44 105,724.56 1,346,869.14
July 1,346,869.14 119,040.00 12,346.30 106,693.70 1,240,175.44
Aug. 1,240,175.44 119,040.00 11,368.27 107,671.73 1,132,503.71
Sep. 1,132,503.71 119,040.00 10,381.28 108,658.72 1,023,845.00
Oct. 1,023,845.00 119,040.00 9,385.25 109,654.75 914,190.24
Nov. 914,190.24 119,040.00 8,380.08 110,659.92 803,530.32
Dec 803,530.32 119,040.00 7,365.69 111,674.31 691,856.01
Jan. 691,856.01 119,040.00 6,342.01 112,697.99 579,158.03
Feb 579,158.03 119,040.00 5,308.95 113,731.05 465,426.97
Mar 465,426.97 119,040.00 4,266.41 114,773.59 350,653.39
1,428,480.00 117,962.87 1,310,517.13

2015-2016

Opening EMI Interest Principal Closing Bal.

April 350,653.39 119,040.00 3,188.33 115,851.67 234,801.72
May 234,801.72 119,040.00 2,126.36 116,913.64 117,888.08
June 117,888.08 119,040.00 1,054.65 117,985.35 (97.27)

357,120.00 6,369.34 350,750.66

7,142,400.00 1,667,302.73
FOR THE EXISTING TERM LOAN

2010-2011
Opening EMI Interest Closing Bal.
April 1,034,125.00 43,088.54 9,479.48 991,036.46
May 991,036.46 43,088.54 9,084.50 947,947.92
June 947,947.92 43,088.54 8,689.52 904,859.38
July 904,859.38 43,088.54 8,294.54 861,770.84
Aug. 861,770.84 43,088.54 7,899.57 818,682.30
Sep. 818,682.30 43,088.54 7,504.59 775,593.76
Oct. 775,593.76 43,088.54 7,109.61 732,505.22
Nov. 732,505.22 43,088.54 6,714.63 689,416.68
Dec 689,416.68 43,088.54 6,319.65 646,328.14
Jan. 646,328.14 43,088.54 5,924.67 603,239.60
Feb 603,239.60 43,088.54 5,529.70 560,151.06
March 560,151.06 43,088.54 5,134.72 517,062.52
517,062.48 78,205.70

2011-2012
Opening EMI Interest Closing Bal.
April 517,062.52 43,088.54 4,739.74 473,973.98
May 473,973.98 43,088.54 4,344.76 430,885.44
June 430,885.44 43,088.54 3,949.78 387,796.90
July 387,796.90 43,088.54 3,554.80 344,708.36
Aug. 344,708.36 43,088.54 3,159.83 301,619.82
Sep. 301,619.82 43,088.54 2,764.85 258,531.28
Oct. 258,531.28 43,088.54 2,369.87 215,442.74
Nov. 215,442.74 43,088.54 1,974.89 172,354.20
Dec 172,354.20 43,088.54 1,579.91 129,265.66
Jan. 129,265.66 43,088.54 1,184.94 86,177.12
Feb 86,177.12 43,088.54 789.96 43,088.58
March 43,088.58 43,088.54 428.93 0.04
517,062.48 26,102.52
 SWAN SWEETS PRIVATE LTD

SCHEDULE FOR FIXED ASSETS

Sr. Description of Assets Balance Addition during Total balance Depreciation Balance Depreciation Balance(WDV) Depreciation Balance(WDV) Depreciation Balance(WDV) Depreciation Balance(WDV)
No. as on the year for 10-11 as on as on as on as on as on
31/03/2010 31/3/2011 31/3/2012 31/3/2013 31/3/2014 31/3/2014

1 Plant & Machinery 26,584,901.00 7,816,219.00 34,401,120.00 1,634,053.20 32,767,066.80 1,556,435.67 31,210,631.13 1,482,504.98 29,728,126.15 1,412,085.99 28,316,040.16 1,345,011.91 26,971,028.25
2 Furniture & Fixtures 942,167.00 - 942,167.00 59,639.17 882,527.83 55,864.01 826,663.82 52,327.82 774,336.00 49,015.47 725,320.53 45,912.79 679,407.74
3 Weighing Scale 109,836.00 - 109,836.00 5,217.21 104,618.79 4,969.39 2,599,649.40 123,483.35 2,476,166.05 117,617.89 2,358,548.16 112,031.04 2,246,517.13
4 Air Conditioner 3,168,139.00 - 3,168,139.00 150,486.60 3,017,652.40 143,338.49 2,874,313.91 136,529.91 2,737,784.00 130,044.74 2,607,739.26 123,867.61 2,483,871.64
5 Zerox Machine 60,234.00 - 60,234.00 2,861.12 57,372.89 2,725.21 54,647.67 2,595.76 52,051.91 2,472.47 49,579.44 2,355.02 47,224.42
6 Electric Fittings 642,426.00 - 642,426.00 30,515.24 611,910.77 29,065.76 582,845.00 27,685.14 555,159.87 26,370.09 528,789.77 25,117.51 503,672.26
7 Vehicles 745,023.00 - 745,023.00 70,777.19 674,245.82 64,053.35 610,192.46 57,968.28 552,224.18 52,461.30 499,762.88 47,477.47 452,285.41
8 Computer 419,763.00 - 419,763.00 68,043.58 351,719.42 57,013.72 294,705.70 47,771.79 246,933.91 40,027.99 206,905.92 33,539.45 173,366.47
9 Fax Machine 5,610.00 - 5,610.00 266.48 5,343.53 253.82 5,089.71 241.76 4,847.95 230.28 4,617.67 219.34 4,398.33
10 Camara 43,316.00 - 43,316.00 2,057.51 41,258.49 1,959.78 39,298.71 1,866.69 37,432.02 1,778.02 35,654.00 1,693.57 33,960.44
11 Cylinder 97,081.00 - 97,081.00 4,611.35 92,469.65 4,392.31 88,077.34 4,183.67 83,893.67 3,984.95 79,908.72 3,795.66 76,113.06
12 Generator 46,720.00 - 46,720.00 2,219.20 44,500.80 2,113.79 42,387.01 2,013.38 40,373.63 1,917.75 38,455.88 1,826.65 36,629.23
13 Lab Equipment 107,283.00 - 107,283.00 5,095.94 102,187.06 4,853.89 97,333.17 4,623.33 92,709.85 4,403.72 88,306.13 4,194.54 84,111.59
14 Plastic Bag Ceiling 7,783.00 - 7,783.00 369.69 7,413.31 352.13 7,061.18 335.41 6,725.77 319.47 6,406.30 304.30 6,102.00

32,980,282.00 2,036,213.47 38,760,287.53 1,927,391.32 39,332,896.21 1,944,131.27 37,388,764.94 1,842,730.12 35,546,034.82 1,747,346.87 33,798,687.95
 SWAN SWEETS PRIVATE LTD

ASSESMENT OF WORKING CAPITAL REQUIRMENTS

FORM I

Perticulars of the existing/proposed limits from the Banking Sy

(Limits from all Banks and Financial Institution as on date of appli

Sr. Name of Bank Nature of Existing

No. Financial Institution fecility limits were utilised during
the last 12 monts
Max.
[1] [2] [3] [4] [5]
A. WORKING CAPITAL LIMITS

1 The Nava Nagar Co-operative Bank

Against stock and Book Debt CC 10,000,000.00

B. Term Loan
Loan for Machinery TL 1,034,000.00
Car loan TL 198,000.00

Total -

Sr. Name of Bank Sanctioned Outstanding as on

No. Financial Institution Limits

C TERM LONS/DPGs
(excldg. working capital term lons)
TD

REQUIRMENTS

(Amount-Rs. in Lacs)

its from the Banking System

ution as on date of application)

Balance Limits now

outstanding as on required

Min. (28-02-2010)
[6] [7] [8]

1,491,457.00 5,500,000.00

5,500,000.00

Overdues if any Remarks

 S

COMPARATIVE STATEME

As
Year Year
NORMS 2008 2009
A. CURRENT ASSETS
1 Raw materials (including stores) 82.27 358.17
a) Imported Days 21 53
(months' consumption)
b) Indigenous
(months' consumption)

2 Other consumable spares, excluding

those included in (1) above
a) Imported
(months' consumption)
b) Indigenous
(months' consumption)

3 Stock-in-process 436.14 487.31

(Months' cost of sales) Days 89.04 53.81

4 Finished goods 18.51 12.49

(Months' cost of sales) Days 3.69 1.38

5 Receivables other than export &

deffered receivables (including BP/BD) 372.38 458.14
(Months' domestic sales excluding
deffered payment sales) In Days 73 83

6 Export receivables (including bills

Purchased & Discounted) 260.40 957.68
(Months' export sales) In Days 201 150
7 Advances to suppliers of raw materials - -
& stores/spares consumable

8 Other current assets including cash &

bank balances & deffered receivables 108.99 530.35
due within one year
9 TOTAL CURRENT ASSETS 1,278.69 2,804.14
 (To agree with item 34 in Form III)

B. CURRENT LIABILITIES
(Other than bank borrowings for working
capital)
10 Creditors for purchase of raw materials, 401.95 728.56
stores & consumable spares
(Months' purchases) In Days 99 98
11 Advances from costomers
12 Statutory liabilities 35.97 96.47
13 Instalments due with in one year - -
14 Other current liabilities 25.09 14.94
(specify major items) - -
15 TOTAL 463.01 839.97
(to agree with sub.total B of Form No.III)

815.68
 SWAN SWEETS PRIVATE LTD

FORM - IV
OMPARATIVE STATEMENT OF CURRENT ASSETS & CURRENT LIABILITIES

As per balance sheet as at 31st March

Year Year Year Year Year Year Year
2010 2011 2012 2013 2014 2015 2016

370.13 1,303.72 1,372.36 1,819.27 1,837.46 2,356.19 2,403.31

60 60 60 75 75 90 90

332.82 473.79 1,598.18 1,802.28 1,904.44 1,922.12 2,017.91

53.81 53.81 53.81 53.81 53.81 53.81 53.81

13.67 16.46 26.94 39.15 52.10 65.33 79.45

2.21 1.87 0.91 1.17 1.47 1.83 2.12

1,129.96 562.10 1,762.40 2,095.24 2,560.89 2,517.08 3,001.69

150 60 60 60 60 75 75

163.16 415.89 1,381.50 1,481.12 1,728.37 2,317.09 2,630.18

180 120 120 120 120 120 120
- - - - - - -

359.50 294.19 298.66 251.17 342.47 470.58 521.22

2,369.24 3,066.15 6,440.05 7,488.23 8,425.72 9,648.39 10,653.77

152.55 555.28 1,456.99 1,224.21 813.88 747.25 527.46

30 45 45 30 15 15 15

19.84 76.44 82.50 88.47 70.25 72.21 55.62

211.45 196.06 1,025.91 1,025.91 994.91 957.30 825.65
8.00 25.00 12.00 15.00 12.00 15.00 15.00
- - - - - - -
391.84 852.79 2,577.40 2,353.59 1,891.04 1,791.76 1,423.73
Year Year Year Year
2017 2018 2019 2020

2,451.38 2,647.49 2,250.37 2,305.00

90 90 75 75

2,048.62 2,083.08 2,214.95 2,259.12

53.81 53.81 53.81 53.81

94.19 109.86 126.01 143.14

2.48 2.84 3.06 3.41

3,408.05 3,153.07 3,183.92 2,860.36

75 75 75 75 -

2,642.02 2,836.23 2,985.36 3,241.84

120 120 120 120
- - - -

605.16 589.31 541.92 442.15

11,249.43 11,419.05 11,302.52 11,251.62

 647.75 692.20 505.18 526.29

15 15 15 15

51.91 57.02 52.58 74.72

791.96 791.96 - -
10.00 16.00 15.00 35.00
- - - -
1,501.62 1,557.18 572.76 636.02
 SWAN SWEE

FORM VI: FU

As per balance
Year Year Year
2007 2008 2009
1 SOURCES
a) Profit before tax 282.18 60.97 570.48
b) Depreciation 205.75 199.96 200.92
c) Gross Funds Generated 487.93 260.93 771.40
d) Less: Taxes paid/payable 103.59 18.84 176.28
e) Less: Dividend paid/payable
f) Less: Payment of Preference dividned
g) Decrease in Other non-current assets - - -
A Sub-Total- Net Funds Generated 384.34 242.09 595.12

LONG TERM SOURCES:

a) Increase in capital 109.56 124.20 1,885.00
aa) Increase in Reserve 52.85 43.55 -
b) Increase in term loans/debentures 668.85 - 5,045.28
c) Increase in payment liabilities - - -
d) Increase in public deposits - - -
e) Decrease in fixed assets/ Work in Progress - - -
B Sub Total 831.26 167.75 6,930.28

SHORT TERM SOURCES

a) Increase in Short Tern Bank Borrowings 688.52 17.19 -
b) Increase in Other Current Liabilities - 204.51 1.61
c) Decrease in current assets including cash & bank - - 54.03
C Sub Total 688.52 221.70 55.63
TOTAL FUNDS AVAILABLE (A+B+C) 1,904.12 631.55 7,581.03

2 USES:
LONG TERM USES:
a) Increase in fixed assets 734.24 157.60 7,344.43
b) Increase in WIP 140.93 - -
c) Repurchase of Capital - - -
d) Decrease in Reserves - - -
e) Decrease in Term Loans - 237.48 -
D Sub Total 875.17 395.08 7,344.43

SHORT TERM USES:

a) Decrease in other current liabilities - - -
b) Increase in inventory 321.04 - 1,077.34
c) Increase in receivables 783.05 - -
d) Increase in other current assets including cash & bank 421.36 19.58 (11.28)
E Sub Total 1,525.45 19.58 1,066.06
TOTAL FUNDS USED (D+E+F) 2,400.62 414.66 8,410.49

SUMMARY
LONG TERM SOURCES 1,215.60 409.84 7,525.40
LESS: LONG TERM USES 875.17 395.08 7,344.43
SURPLUS(+)/SHORT FALL(-) 340.43 14.77 180.97
SHORT TERMS SOURCES 688.52 221.70 55.63
LESS: SHORT TERM USES 1,525.45 19.58 1,066.06
SURPLUS(+)/SHORT FALL (-) (836.93) 202.12 (1,010.43)

(496.50) 216.89 (829.46)

SWAN SWEETS PRIVATE LTD

FORM VI: FUNDS FLOW STATEMENT

As per balance sheet as at 31st March

Year Year Year Year Year Year
2010 2011 2012 2013 2014 2015

1,796.86 2,166.61 2,281.56 2,279.27 2,305.65 2,226.87

1,131.17 977.63 845.26 731.14 632.72 547.84
2,928.03 3,144.24 3,126.82 3,010.41 2,938.38 2,774.71
545.56 659.48 700.00 704.30 712.45 688.10

26.87 26.87 26.87 26.87 26.87

- - - - - -
2,382.47 2,457.89 2,399.95 2,279.24 2,199.06 2,059.74

- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -

- - - - - -
816.84 3.00 (3.00) 3.00 (219.79) (5.00)
- 41.31 (712.89) - - -
816.84 44.31 (715.89) 3.00 (219.79) (5.00)
3,199.31 2,502.19 1,684.06 2,282.24 1,979.27 2,054.74

- - - - - -
- - - - - -
- - - - - 375.00
- - - - - 375.00
723.51 1,025.91 202.94 165.34 33.69 -
723.51 1,025.91 202.94 165.34 33.69 750.00
 - - 410.32 66.64 - (120.30)
1,203.52 663.20 133.31 549.64 157.03 93.52
2,165.91 432.46 544.92 797.70 418.21
4.47 (6.18) 91.30 128.10 50.65 83.93
3,373.90 1,089.49 634.93 1,289.30 1,005.38 475.36
4,097.41 2,115.39 837.87 1,454.64 1,039.07 1,225.36

2,382.47 2,457.89 2,399.95 2,279.24 2,199.06 2,059.74

723.51 1,025.91 202.94 165.34 33.69 750.00
1,658.96 1,431.98 2,197.01 2,113.90 2,165.37 1,309.74
816.84 44.31 (715.89) 3.00 (219.79) (5.00)
3,373.90 1,089.49 634.93 1,289.30 1,005.38 475.36
(2,557.06) (1,045.18) (1,350.82) (1,286.30) (1,225.17) (480.36)

(898.10) 386.80 846.19 827.60 940.20 829.37

 - - 800.00
- - -
375.00 375.00 375.00
375.00 375.00 375.00
- - -
750.00 750.00 1,550.00
(50.45) 188.02 -
246.24 (249.11) 115.94
- 179.98 (67.08)
(47.40)
195.80 71.49 48.86
945.80 821.49 1,598.86

- - -
750.00 750.00 1,550.00
(750.00) (750.00) (1,550.00)
- - -
195.80 71.49 48.86
(195.80) (71.49) (48.86)

(945.80) (821.49) (1,598.86)

 SWA

COMPUTATION OF MAXIMUM PE

As per
Year Year Year
2,008 2,009 2,010

1 Total Current Assets (Item 9 of form IV) 1,278.69 2,804.14 2,369.24

2 Other Current Liabilities other than bank borrowing 463.01 839.97 391.84
(Item 14 of form IV)

3 Working Capital Gap (WCG) (Item 1minus item 2) 815.68 1,964.18 1,977.40

4 Min.Stipulated net working capital (i.e.25%of WCG/

25%of TOTAL CURRENT ASSETS as the case may 319.67 701.04 592.31
be depending upon the method of leanding bening
applied) (Export receivables to be excluded under
both methods)

5 Actual / projected N W C (item 46 of Form III) 221.39 681.37 677.40

6 Item (3) minus item (4) 496.01 1,263.14 1,385.09

7 Item (3) minus item (5) 594.29 1,282.81 1,300.00

8 Meximum permissible bank finance

(Item (6) or (7) whichever is lower) 496.01 1,263.14 1,300.00

9 Excess borrowings representing short fall in NWC

(Item 4 minus 5) 98.29 19.67 (85.09)
 SWAN SWEETS PRIVATE LTD

FORM-V
ON OF MAXIMUM PERMISSIBLE BANK FINANCE FOR WORKING CAPITAL

As per balance sheet as at 31st March

Year Year Year Year Year Year
2,011 2,012 2,013 2,014 2,015 2,016

3,066.15 6,440.05 7,488.23 8,425.72 9,648.39 10,653.77

852.79 2,577.40 2,353.59 1,891.04 1,791.76 1,423.73

2,213.36 3,862.65 5,134.64 6,534.68 7,856.63 9,230.03

766.54 1,610.01 1,872.06 2,106.43 2,412.10 2,663.44

913.36 2,562.66 3,834.64 5,234.68 6,556.62 7,930.03

1,446.82 2,252.64 3,262.59 4,428.25 5,444.53 6,566.59

1,300.00 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00

1,300.00 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00

(146.83) (952.64) (1,962.58) (3,128.25) (4,144.53) (5,266.59)

 ( in Lacs)

Year Year Year Year

2,017 2,018 2,019 2,020

11,249.43 11,419.05 11,302.52 11,251.62

1,501.62 1,557.18 572.76 636.02

9,747.81 9,861.87 10,729.76 10,615.60

2,812.36 2,854.76 2,825.63 2,812.90

8,447.80 8,561.87 9,429.76 9,315.60

6,935.45 7,007.11 7,904.13 7,802.69

1,300.00 1,300.00 1,300.00 1,300.00

1,300.00 1,300.00 1,300.00 1,300.00

(5,635.44) (5,707.11) (6,604.13) (6,502.70)

Microsoft Excel 9.0 Answer Report
Worksheet: [Detail_Analysis.xls]13 - Pro Forma (Exp)
Report Created: 3/16/2002 3:42:28 PM

Target Cell (Min)

Cell Name Original Value Final Value
$G$60 Mean Squared Error Square 20,525,549 12,297,836

Adjustable Cells
Cell Name Original Value Final Value
$D$24 Set Smoothing Factor 0.70 1.00

Constraints
Cell Name Cell Value Formula Status Slack
$D$23 Smoothing Factor must be between 0 and 1 0 $D$23>=$D$23 Binding 0
$D$24 Set Smoothing Factor 1.00 $D$24<=$E$23 Binding 0
Microsoft Excel 9.0 Answer Report
Worksheet: [Detail_Analysis.xls]13 - Pro Forma (Exp)
Report Created: 3/16/2002 5:19:05 PM

Target Cell (Min)

Cell Name Original Value
$G$46 Mean Squared Error Square 65,536,151

Adjustable Cells
Cell Name Original Value
$D$25 Assign weights to appropriate periods 0.00%
$E$25 Assign weights to appropriate periods 2.00%
$F$25 Assign weights to appropriate periods Total weights should add up to => 5.00%
$G$25 Assign weights to appropriate periods 35.00%
$H$25 Assign weights to appropriate periods 60.00%

Constraints
Cell Name Cell Value
$I$25 Assign weights to appropriate periods 100.00%
$D$25 Assign weights to appropriate periods 0.00%
$E$25 Assign weights to appropriate periods 1.50%
$F$25 Assign weights to appropriate periods Total weights should add up to => 4.50%
$G$25 Assign weights to appropriate periods 34.50%
$H$25 Assign weights to appropriate periods 59.50%
$D$25 Assign weights to appropriate periods 0.00%
$E$25 Assign weights to appropriate periods 1.50%
$F$25 Assign weights to appropriate periods Total weights should add up to => 4.50%
$G$25 Assign weights to appropriate periods 34.50%
$H$25 Assign weights to appropriate periods 59.50%
 Final Value
59,853,342

Final Value
0.00%
1.50%
4.50%
34.50%
59.50%

Formula Status Slack

$I$25=$E$23 Binding 0
$D$25<=$E$23 Not Binding 1
$E$25<=$E$23 Not Binding 0.985
$F$25<=$E$23 Not Binding 0.955
$G$25<=$E$23 Not Binding 0.655
$H$25<=$E$23 Not Binding 0.405
$D$25>=$D$23 Binding 0.00%
$E$25>=$D$23 Not Binding 1.50%
$F$25>=$D$23 Not Binding 4.50%
$G$25>=$D$23 Not Binding 34.50%
$H$25>=$D$23 Not Binding 59.50%