FOR YEAR 2006-07:

PARTICULARS FIXED ASSETS Net block Capital work-in-progress Project & Pre-operative expenses Total fixed assets CURRENT ASSETS Inventories Sundry debtors Cash & Bank Balances Loans & Advances Total current assets Total assets SHARE CAPITAL & RESERVES Inter unit balances Secured loans Reserves & Surplus Total Capital & Reserves CURRENT LIABILITIES Sundry creditors Other liabilities Interest accrued but not due Security deposits & Retention money Total current liabilities Total of liability side

AMOUNT (IN RS.) 220213154.5 300237 220513391.5 35816899.3 48904270.9 253609 8009581.9 92984361.1 313497752.6

% 70.24 0.096 70.34 11.42 15.59 0.08 2.55 29.66 100

215855702.2 59872920 29033979.4 304762601.6 1203818.69 7335764.53 195567.89 8735151.11 313497752.71

68.9 92.6 19.09 97.21 0.38 2.34 0.062 2.79 100

FOR YEAR 2007-08:

PARTICULARS FIXED ASSETS Net block Capital work-in-progress Project & Pre-operative expenses Total fixed assets

AMOUNT (IN RS.) 209812946.08 983537.06 210796483.14

% 58.39 0.27 58.66

CURRENT ASSETS Inventories Sundry debtors Cash & Bank Balances Loans & Advances Total current assets Total assets SHARE CAPITAL & RESERVES Inter unit balances Secured loans Reserves & Surplus Total Capital & Reserves CURRENT LIABILITIES Sundry creditors Other liabilities Interest accrued but not due Trade deposits and other Advances Total current liabilities Total of liability side

32341614.46 99301521.09 16894574.44 148537709.99 359334193.13

9 27.63 4.70 41.34 100

236801598.89 131435332.52 53753985.78 421990917.19 1767614.89 4076005.21 131757.07 5975377.17 427966294.36

55.33 12.56 30.71 98.60 0.41 0.95 0.03 1.4 100

ANALYSIS For spinning mill, the major part of current assets involves inventories. It covers more than 50% of total current assets. The debtors also have significant part of current assets. It contributes approximate 11% to 30% part of current assets for all the years from 2004-05 to 2007-08. The least contribution is thus of cash and bank balance. On the other hand, current liabilities consist of mainly creditors and other liabilities. In 2007-08, current assets have increased due to increase in inventories and loans & advances, and current liabilities have also shown increament. So the working capital is more for year 2007-08 as compared to last years working capital. For dye house, the inventories form a good portion of current assets and contribute 30% to 50% of the total current assets over the past years. The sundry debtors also show fluctuating proportions in the total current assets over the years. The proportion is quite less for year 200405 but it increased significantly for the next years and contributed about 66% to the total current assets in year 2007-08. The current liabilities mainly consist of sundry creditors and other

liabilities. The sundry creditors have decreased over

the past years. The other liabilities have

shown increament from year 2004-05 to year 2006-07 but it has decreased in year 2007-08.

3. ANALYSIS ON THE BASIS OF SCHEDULE OF CHANGES IN WORKING CAPITAL SCHEDULE OF CHANGES IN WORKING CAPITAL:

FOR SPINNING MILL: PARTICULARS CURRENT ASSETS: Inventories S. debtors Cash & Bank Balances Loans & Advances Total current assets (A) CURRENT LIABILITIES: S. creditors Other liabilities Int. accrued but not due Security deposits & Retention money Total current liabilities (B) Working capital (A-B) Net increase in working capital 2004-05 2005-06 INCREASE DECREASE

208195599.41 37039996.26 435629.36 84108909.37 329780134.4

246141889.88 37279070.84 569656 53923502.83 337914119.55

37946290.47 239074.58 134026.64 30185406.54 ANAL YSIS:

4316518.31 16627112.73 668837 1339839.78

5840979.88 18036489.88 1521329.27

1524461.57 1409377.15 668837 181489.49

22952307.82 306827826.58 5687493.94 312515320.52

312515320.52 312515320.52 5687493.94 312515320.52 38988228.69 38988228.69

FOR PARTICULARS CURRENT ASSETS: Inventories S. debtors Cash & Bank Balances Loans & Advances Total current assets (A) CURRENT LIABILITIES: S. creditors Other liabilities Trade deposits Security deposits & Retention money Total current liabilities (B) Working capital (A-B) Net increase in working capital 2006-07 2007-08 INCREASE DECREASE YEAR S 2004240453655.62 92312638.13 5210807.58 34054852.70 372031954.03 379510100.55 29970369.49 395884.64 52829830.38 462706185.06 139056444.93 62342268.64 4814922.94 18774977.68 05 AND 200506: As we have a look on 5294945.83 21319619.32 2938714.93 23709393.26 23475855.20 706233.46 18414447.43 2156235.88 706233.46 2938714.93 the schedul e of change 29553280.08 342478673.95 72336029.19 414814703.14 414814703.14 160770137.54 47891481.92 414814703.14 72336029.19 160770137.54 s in workin g capital for the spinnin g mill over the years 2004-05 and 2005-06, we find that, among current assets,inventories, sundry debtors and cash & bank balances have shown increament from year 2004-05 to year 2006-07. The Loans & advances have got decreased in the same years. Among the current liabilities, the sundry creditors and other liabilities have increased. So the overall net working capital has increased.

FOR YEARS 2006-07 AND 2007-08: Among the current assets,inventories and loans & advances have increased and sundry debtors and cash & bank balances have shown decreament. The total current assets have increased.

Among the current liabilities,sundry crditors and other liabilities have increased. So the net working capital has also increased.

FOR DYE HOUSE:

PARTICULARS CURRENT ASSETS: Inventories S. debtors Cash & Bank Balances Loans & Advances Total current assets (A) CURRENT LIABILITIES: S. creditors Other liabilities Security deposits & Retention money Total current liabilities (B) Working capital (A-B) Net increase in working capital

2004-05

2005-06

INCREASE

DECREASE

3247313.77 247769 6137924.86 9633007.63

31300541.06 28959170.26 233902 4352416.31 64846029.63

28053227.29 28711401.26 233902 1785508.55

8359951.15 1429726.92 672844.48

5449322.89 6821847.92 819607.13

2910628.26 5392121 146762.65

10462522.55 (829514.92) 52584766.61 51755251.69

13090777.94 51755251.69 52584766.61 51755251.69 59909158.81 59909158.81

PARTICULARS CURRENT ASSETS: Inventories S. debtors Cash & Bank Balances Loans & Advances Total current assets (A) CURRENT LIABILITIES: S. creditors Other liabilities Trade deposits Security deposits & Retention money Total current liabilities (B) Working capital (A-B) Net increase in working capital

2006-07

2007-08

INCREASE

DECREASE

35816899.34 48904270.97 253609 8009581.93 92984361.24

32341614.46 99301521.09 16894574.44 148537709.99

3475284.88 50397250.12 253609 YSIS 8884992.51 FOR YEAR S 2004ANAL

1203818.69 7335764.53 195567.89

1767614.89 4076005.21 131757.07 -

563796.2 3259759.32 131757.07 195567.89

05 AND 200506: Among

8735151.11 84249210.13 58313122.69 142562332.82

5975377.17 142562332.82 58313122.69 14256332.82 62737569.84 62737569.84

the current assets, invento ries, sundry

debtors and cash & bank balance have increased but the loans & advances have decreased. The total current assets have increased. Among the current liabilities, sundry creditors have decreased and other liabilities have increased. The total current liabilities have increased. So, the net working capital has increased.

FOR YEARS 2006-07 AND 2007-08: Among the current assets, inventories and cash & bank balances have decreased. On the other hand, sundry debtors and loans & advances have increased. The total current assets have increased. Among the current liabilities, sundry creditors have increased but other liabilities have decreased. So, the net working capital has increased.