Exhibit 6.3 Margin Money for Working capital 1 Year No.

of Bank Amount of Margin Months Margin Amount Bank Money Amount requirements Availabily (4) Finance required ( 7) (2) ( 3) (5) (6)

Items

1. Indigenous raw materials / components Less: Trade credits Net indigenous raw materials / components 2. Imported raw materials / components 3. Consumable stores Less: Trade credit Net consumable stores 4. Wages and salaries 5. Cost of fuel, light and power, taxes, insurance, rent, etc. 6. Cost of repairs and maintenance 7. Packing and sales expenses ( other than salaries and wages on sale staff which should be included under 4 above ) 8. Stock and finished goods at cost excluding depreciation ( to be held for the period between production and realisation of sale proceeds ) 9. Stock of goods- in- process ( cost of production, excluding depreciation during the period taken for one complete cycle, i.e., from the raw material to the finished goods stage ) 10. Outstanding debtors 11. Other items of working capital, if any ( Excise duty payable on 1 month's sale, deposits for utilities, etc.) Less: Trade credits available on raw materials and consumables Net working capital

Exhibit 6.2 Estimates of Production and Sales ( Details may be furnished separately for each product and until the plant reaches maximum capacity utilisation ) Product Product 1st Yr. 1. Installed capacity ( qty. per day per annum ) 2nd Yr. 3rd Yr. 4th Yr. 1st Yr. 2nd Yr. 3rd Yr. 4th Yr.

2. No. of Working days 3. No. of shifts 4. Estimated production per day ( qty ) 5. Estimated annual production ( qty ) 6. Estimated output as % of plant capacity

7. Sales ( qty ) ( after adjusting stocks ) 8. Value of sales ( in ' 000 of Rs ) Product (I) ( II ) ( III ) Note: Production in the initial period should be assumed at a reasonable level of utilisation of capacity increasing gradually to attain full capacity in subsequent years.

Exhibit 6.4 Estimates of Working Results (This statement should be prepared for ten years) (In thousands of rupees) Year ending 20 A Cost of Production Administrative expenses Administrative salaries Remuneration to directors Professional fees Light, postage, telegrams and telephones, office supplies (stationery, Printing, etc.) Insurance and taxes on office property Miscellaneous B Total Administrative Expenses C Total Sales Expenses D Royalty and know-howj Payable E Total Cost of Production(A+B+C+D) F Expected Sales G Gross Profit Before Interest (F-E) Financial expenses Interest on term loans Interest on borrowings for working capital Guarantee commission H Total Financial Expenses I Depreciation J Operating Profit (G-H-I) K Other Income, if any (Given details) L Preliminary Expenses Written Off M Profit/Loss before Taxation ( J+K+L) N Provision for Taxation O Profit After Tax (M-N) Less Dividend on Preference Capital Equity Capital (with rate) P Retained Profit Add Depreciation Preliminary Expenses Written Off Q Net Cash Accruals

20

20

20

20 (ten years)

Note: Detailed working shall be provided for the calculation of depreciation (straightlline and income tax method) , interest, taxation, etc.

FINANCE -BALANCE SHEET

SOURCES OF FUNDS :
Share Capital Reserves Total Equity Share Warrants Equity Application Money

Yr 1

Yr 2

Yr 3

Yr 4

Yr 5

Total Shareholders Funds

Secured Loans Unsecured Loans

Total Debt Total Liabilities

APPLICATION OF FUNDS :
Gross Block Less : Accumulated Depreciation Less:Impairment of Assets Net Block Lease Adjustment Capital Work in Progress Investments Current Assets, Loans & Advances Inventories Sundry Debtors Cash and Bank Loans and Advances Total Current Assets Less : Current Liabilities and Provisions Current Liabilities Provisions Total Current Liabilities Net Current Assets Miscellaneous Expenses not written off Deferred Tax Assets Deferred Tax Liability Net Deferred Tax

Total Assets
Contingent Liabilities

Yr 6

Cash Flow Statement

Sources of Cash
Funds from operations Net Income (profit before Tax) +Depreciation +loss on sale of assets - profit on sale of assets - Interest Income + Interest expenses Issue of share capital New Equity Capital New Preference Capital Long term borrowings New debentures New Long term loans Sale of non-current assets Sale of Fixed assets Sale of Investments Interest income Increases in current liabilities Increase in creditors Increase in short term borrowings Increase in O/S expenses Increase in Income received in advance Decrease in current assets other than cash Dec in Inventory Decrease in Debtors Dec in Prepaid expenses Dec in O/S Income

Operating activities

Financing Activities

Investment activities

Working Capital changes

Uses Of cash
Payment of Dividend Taxes Redemption of Capital Equity Capital Preference Capital Redemption of Long term borrowings New debentures New Long term loans Interest expenses Purchase of non-current assets Purchas of Fixed assets Purchas of Investments Decrease in current liabilities Decrease in creditors Decrease in short term borrowings Decrease in O/S expenses Decrease in Income received in advance Increase in current assets other than cash Inc in Inventory Inc in Debtors Inc in Prepaid expenses Operating activities

Financing Activities Investment activities

Working Capital changes

inc in O/S Income

Working Capital changes

Cash flow from Operating activities

A

Sources of Cash
Funds from operations Net Income (profit before Tax) +Depreciation +loss on sale of assets - profit on sale of assets +Interest expenses - Interest income

Uses Of cash
Payment of Dividend Taxes

Operating profit before working capital changes

C

Sources of Cash
Increases in current liabilities Increase in creditors Increase in short term borrowings Increase in O/S expenses Increase in Income received in advance Decrease in current assets other than cash Dec in Inventory Decrease in Debtors Dec in Prepaid expenses Dec in O/S Income

Uses Of cash
Decrease in current liabilities Decrease in creditors Decrease in short term borrowings Decrease in O/S expenses Decrease in Income received in advance Increase in current assets other than cash Inc in Inventory Inc in Debtors Inc in Prepaid expenses inc in O/S Income

I
E

Net Cash flow from operating activities (A-B+C-D) Cash flow from Financing activities
Sources of Cash
Issue of share capital New Equity Capital New Preference Capital Long term borrowings New debentures New Long term loans

Uses Of cash
Redemption of Capital Equity Capital Preference Capital Redemption of Long term borrowings New debentures New Long term loans Interest paid

II
G

Net Cash flow from Financing activities (E-F) Cash flow from Investment activities
Sources of Cash
Sale of non-current assets Sale of Fixed assets Sale of Investments Interest income

Uses Of cash
H Purchase of non-current assets Purchas of Fixed assets Purchas of Investments

III

Net Cash flow from Investment activities (G-H)

Inc/Dec in cash I + II + III

Net cash equivalent at beginning Net cash equivalent at end Cash equivalent is equal to cash, bank, and near cash (Money market Instruments)

Cash flow estimation Investment Outlay 1

Total revenue less : total expenses

0 (xxx)

2 (xxx)

EBDIT
Less; Depreciation EBIT Less: Interest EBT Less: Tax EAT Add Depreciation

Opearting Cash Flow

Add Salvage Values

NCF
CF to all investors CF to equity investors CF to Debt Invetsors EAT+depreciation+both ST & LT Interest(1-t) EAT+depreciation- all principal repayments and capital expense EAT+depreciation+ LT Interest(1-t)

cost of capital opportunity cost of funds estimation of NPV IRR estimation Sensitivity Analysis

st(1-t) capital expense )

consider interest on Short term loan

Particulars Opening Stock of Raw Material Add: Purchase of Raw materials Add: Purchase Expenses Less: Closing stock of Raw Materials Raw Materials Consumed Direct Wages (Labour) Direct Charges Prime cost (1) Add :- Factory Over Heads: Factory Rent Factory Power Indirect Material Indirect Wages Supervisor Salary Drawing Office Salary Factory Insurance Factory Asset Depreciation Works cost Incurred Add: Opening Stock of WIP Less: Closing Stock of WIP Works cost (2) Add:- Administration Over Heads:Office Rent Asset Depreciation General Charges Audit Fees Bank Charges Counting house Salary Other Office Expenses Cost of Production (3) Add: Opening stock of Finished Goods Less: Closing stock of Finished Goods Cost of Goods Sold Add:- Selling and Distribution OH:Sales man Commission Sales man salary Traveling Expenses Advertisement Delivery man expenses Sales Tax Bad Debts

Amount Amount *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** ***

Cost of Sales (5) Profit (balancing figure) Sales

*** *** ***