BAJAJ AUTO LTD.

Working for Operating Cycle

Items 2008-09 2007-08

(Rs. In Million) (Rs. In Million)
Raw Materials Conversion Period
Raw Material Consumption (W.N.-1) 64391 66883
Raw Material Consumed per day 179 186
Closing Raw Material Inventory (Schedule 8) 1078 924
Raw Materail Inventory holding days 6 5

Work -In-Process Conversion Period

Cost of Production (W.N.-2) 77282 79890
Cost of Production per day 215 222
Closing WIP inventory 120 179
Work -in- Process Inventory holding days 1 1

Finished Goods Conversion Period

Cost of Goods sold (W.N.-3) 77691 79318
Cost of Goods sold per day 216 220
Closing Finished Goods Inventory (Schedule 11) 1286 1695
Finished Goods Inventory holding days 6 8

Debtors Collection Period

Credit Sales 90497 96900
Sales per day 251 269
Closing value of debtors 3587 2753
Debtors outsatanding days 14 10

Creditors Deferral Period

Credit Purchases (W.N.-4) 66646 69831
Purchase per day 185 194
Closing value of creditors (W.N.-5) 10929 9485
Creditors Outstanding days 59 49

Working Note 1:
Raw Materials
Raw material and components consumed 60673 63981
Finished goods purchases 3744 2873
Excise duty on increase/ (decrease) in stocks of finished goods -27 29
Raw Material consumed 64391 66883

Working Note 2:
Calculation of Cost of Production
Total Expense 77691 79318
Less: Opening Stock of Finished Goods (Schedule 11) 1695 1123
Add: Closing Stock of Finished Goods (Schedule 11) 1286 1695
Total Cost of Production 77282 79890

Working Note 3:
Total Cost 77691 79318

Working Note 4:
Purchases
Closing Stock of Raw Material 728 505
Materials consumed 60673 63981
Less: Opening Stock of Raw Material 505 381
(A) 60896 64105

Manufacturing and Admin Expenses 11500 11451

50% of the expenses (B) 5750 5726

Credit Purchases (A+B) 66646 69831

Working Note 5:
Calculation of creditors
Total Creditors 12134 10433
Less:Advance against orders 1196 948
Less:Unclaimed Dividend 9 0
Creditors 10929 9485

Calculation of Gross Operating Cycle and Net Operating Cycle

(In days) (In days)

A) Inventory Conversion Period
a) Raw materials 6 5
b) WIP 1 1
c) Finished Goods 6 8
13 14
B) Debtors Conversion Period 14 10

C) Gross Operating Cycle (A+B) 27 24

D) Payment Deferral Period 59 49

E) Net Operating Cycle (C-D) -32 -25

Net Working Capital -1123 -2276

Therefore, increase in working capital 1153
% increase in working capital 51

Particulars 2008-09 2007-08

(Rs. in Million) (Rs. in Million)
Long Term Assets
Fixed Assets 15481 12928
Long term Investments (Schedule No. 7) 18085 18571
(A) 33566 31499

Long Term Funds

Share Capital 1447 1447
Unsecured Loans 13215 13273
(B) 14662 14720

Excess/ Deficit (B-A) -18904 -16779

Funded through Short term Funds

Short term Loan 0.00 70.00
Short term Loan in foreign currency 2485.00 0.00
2485.00 70.00

Long term investement financed from

LT funds (B/A) 43.68 46.73
ST funds (B/A) 7.40 0.2222

Moderately conservative

Ratio Analysis
1) CA/FA
Current Assets 23253 16497
Net Fixed Assets 15260 12581
CA/FA 1.52 1.31

2) Sales/CA
Net Sales 84369 86633
Current Asset 23253 16497
Sales/CA 3.63 5.25

3) Debt/Equity
Debt 15700 13343
Equity 18697 15876
Debt/Equity 0.84 0.84
Highly leveraged ,Risky

4) Current Ratio
Current Asset 23253 16497
Current Liabilities 24376 18773
Current Ratio 0.95 0.88

5) Inventory Turnover Ratio

Gross Sales 90497 96900
Inventory 3388 3496
Inventory Turnover ratio 26.71 27.72

6) EBIT/TA
EBIT 11842 12423
Fixed Assets 15260 12581
Current Assets 23253 16497
Total Assets 38513 29078
EBIT/Total Assets*100 30.75 42.72

7) Return on Capital Employed

EBIT 11842 12423
Capital Employed 34439 29329
Return on Capital Employed 34.39 42.36

Calculation of Working Capital

2008-09
Total Considered
Current Assets
Inventories 3388 3388
Sundry Debtors 3587 3587
Cash & Bank Balances 1369 1369
Loans & Advances 13652 12924
Other Current Assets 1257 1257
(A) 23253 22525

Current Liabilities
Creditors 8000 8000
Advance Payments 4009 4009
Other Liability 125 125
Proposed Dividend 3183 3183
Other Provisions 9059 9059
(B) 24376 24376

Working Capital (A-B) -1123 -1851

Items not considered

Loans
Loans to Bajaj Auto Finance Ltd. 146
Loans to former employees 582
728

Advances
008-09 2007-08
Not Considered Total Considered Not Considered

3496 3496
2753 2753
561 561
728 8888 8483 405
800 800
728 16498 16093 405

8788 8788
1605 1605
40 40
2894 2894
5446 5446
18773 18773

-2275 -2680

405
 0
405
 IDEA CELLULAR LTD.
Working for Operating Cycle

Items 2008-09 2007-08

(Rs. In Million) (Rs. In Million)
Finished Goods Conversion Period
Cost of Goods sold (W.N.-1) 70984 4462
Cost of Goods sold per day 197 12
Closing Finished Goods Inventory (Schedule 7) 427 276
Finished Goods Inventory holding days 2 22

Debtors Collection Period

Credit Sales (W.N.-2) 9982 6720
Sales per day 28 19
Closing value of debtors 3296 1986
Debtors outstanding days 119 106

Creditors Deferral Period

Credit Purchases (W.N.-3) 54425 34756
Purchase per day 151 97
Closing value of creditors (Schedule 12) 19939 16855
Creditors Outstanding days 132 175

Working Note 1:
Calculation of Cost of Goods Sold
Cost of trading goods sold 190 0.06
Personnel expenditure 4677 3418
Network Operating Expenditure 20762 10470
Licence and WPC Charges 10959 6851
Roaming and Access Charges 18159 11334
Subscriber Acquisition and Servicing Expenditure 8146 6470
Advertisement and Business Promotion Expenditure 4266 3224
Administration and other expenses 3825 2895
Cost of Goods Sold 70984 44662

Working Note 2:
Credit Sales
Service Revenue 98383 67200
Sales of Trading Goods 187 0.07
Total Sales 98570 67200

Service Revenue (10% -Credit Sales) 9838 6720

Sales of Trading Goods (100%-Credit Sales) 144 0
Total Credit Sales 9982 6720
Working Note 3:
Purchases
Cost of trading goods sold (Schedule 14) 190 0.06
Personnel Expenditure (Schedule 15) 4677 3418
Licence and WPC Charges (Schedule 17) 10959 6851
Roaming and Access Charges (Schedule 18) 18159 11334
Subscriber Acquisition & Servicing Expenditure (Schedule 19) 8146 6470
(A) 42131 28073

Networking Operating Expenditure (Schedule 16) 20762 10470

Administration and Other Expenses (Schedule 20) 3825 2895
(B) 24587 13365

50% of (B) 12294 6683

Credit Purchases (A+B) 54425 34756

Calculation of Gross Operating Cycle and Net Operating Cycle

(In days) (In days)

A) Inventory Conversion Period
Finished Goods 2 22
2 22
B) Debtors Conversion Period 119 106

C) Gross Operating Cycle (A+B) 121 128

D) Payment Deferral Period 132 175

E) Net Operating Cycle (C-D) -11 -47

Net Working Capital 15428 -10515

Therefore, increase in working capital 25943
% increase in working capital 247

Particulars 2008-09 2007-08

(Rs. in Million) (Rs. in Million)
Long Term Assets
Fixed Assets 125447 106085
Long term Investments (Schedule No. 7) 49288 5699
(A) 174735 111784

Long Term Funds

Share Capital 116997 49525
Secured Loan 55649 53154
Unsecured Loan 5144 3147
(B) 177790 105826

Excess/ Deficit (B-A) 3055 -5958

Funded through Short term Funds

Working Capital 15428 -10515
Short term Loan 15000 8846
30428 -1669

Long term investment financed from

LT funds 101.75 94.67
ST funds 17.41 -1.49

Conservative

Ratio Analysis
1) CA/FA
Current Assets 47638 15740
Fixed Assets 108229 89828
CA/FA 0.44 0.18

2) Sales/CA
Net Sales 98570 67200
Current Asset 47638 15740
Sales/CA 2.07 4.27

3) Debt/Equity
Debt 75794 65148
Equity 116997 49525
Debt/Equity 0.65 1.32
Less Leveraged, Less Risky

4) Current Ratio
Current Asset 47638 15740
Current Liabilities 32210 26255
Current Ratio 1.48 0.60

5) Inventory Turnover Ratio

Gross Sales 98570 67200
Inventory 427 276
Inventory Turnover ratio 230.84 243.48

6) EBIT/TA
EBIT 10869 11169
Fixed Assets 108229 89828
Current Assets 47638 15740
Total Assets 155867 105568
EBIT/Total Assets*100 6.97 10.58

7) Return on Capital Employed

EBIT 10869 11169
Capital Employed 194216 115335
Return on Capital Employed 5.60 9.68

Calculation of Working Capital

2008-09
Total Considered
Current Assets
Inventories 427 427
Sundry Debtors 3296 3296
Cash & Bank Balances 23444 23444
Loans & Advances 19140 9470
Other Current Assets 1331 1331
(A) 47638 37968

Current Liabilities
Creditors 19939 19939
Book Bank Overdraft 1089 1089
Advances from Customers 5417 5417
Deposits from Customers and Others 1423 1423
Other Liabilities 1803 1803
Interest accrued but not due 1554 1554
Provisions 987 987
(B) 32212 32212

Working Capital (A-B) 15426 5756

Items not considered

Loans and advances
Deposits with Body Corporates 8922
Deposits with subsidiaries 748
9670
008-09 2007-08
Not Considered Total Considered Not Considered

276 276
1986 1986
4971 4971
9670 7987 7715 272
521 521
9670 15741 15469 272

16855 16855
2256 2256
4054 4054
1268 1268
911 911
93 93
818 818
26255 26255

-10514 -10786

0
272
272
 WYETH LTD.
Working for Operating Cycle

Items 2008-09
(Rs. In lakhs)
Raw Materials Conversion Period
Raw Material Consumption (Schedule 14) 3381
Raw Material Consumed per day 9
Closing Raw Material Inventory (Schedule 8) 817
Raw Materail Inventory holding days 87

Work -In-Process Conversion Period

Cost of Production (W.N.-1) 19958
Cost of Production per day 55
Closing WIP inventory 84
Work -in- Process Inventory holding days 2

Finished Goods Conversion Period

Cost of Goods sold (W.N.-2) 25456
Cost of Goods sold per day 71
Closing Finished Goods Inventory (Schedule 14) 4378
Finished Goods Inventory holding days 62

Debtors Collection Period

Credit Sales 40209
Sales per day 112
Closing value of debtors 2450
Debtors outsatanding days 22

Creditors Deferral Period

Credit Purchases (W.N.-3) 10541
Purchase per day 29
Closing value of creditors 5961
Creditors Outstanding days 204

Working Note 1:
Calculation of Cost of Production
Materials Cost (A) 11527

Personnel Cost 4538

Manufacturing and Other Expenses 9391
(B) 13929
50% of above expenses (C) 6965
Total Cost (A+C) 18492
Less: Opening Stock of Finished Goods 2912
Add: Closing Stock of Finished Goods 4378
Total Cost of Production 19958

Working Note 2:
Calculation of Cost of Goods Sold
Materials Cost 11527
Personnel Cost 4538
Manufacturing and Other Expenses 9391
Cost of Goods Sold 25456

Working Note 3:
Credit Purchases
Purchases
Closing Stock of Raw Material 817
Materials consumed 3381
Less: Opening Stock of Raw Material 622
(A) 3576

Other Expenses:
Personnel Cost 4538
Manufacturing and Admin Expenses 9391
13929

50% of the other expenses (B) 6965

Credit Purchases (A+B) 10541

Calculation of Gross Operating Cycle and Net Operating Cycle

(In days)
A) Inventory Conversion Period
a) Raw materials 87
b) WIP 2
c) Finished Goods 62
151
B) Debtors Conversion Period 22

C) Gross Operating Cycle (A+B) 173

D) Payment Deferral Period 204

E) Net Operating Cycle (C-D) -31

Net Working Capital 22977

Therefore, increase in working capital 1836
% increase in working capital 9

Particulars 2008-09
(Rs. in Lakhs)
Long Term Assets
Fixed Assets 3820
Long term Investments 0
(A) 3820

Long Term Funds

Share Capital 27168
Unsecured Loans 250
(B) 27418

Excess/ Deficit (B-A) 23598

Funded through Short term Funds

Short term Loan (Unsecured loan taken by the Company is considered Long term) 0.00
0.00

Long term investment financed from

LT funds (B/A) 717.75
ST funds (B/A) 0.00

Highly conservative

Ratio Analysis
1) CA/FA
Current Assets 38779
Fixed Assets 3820
CA/FA 10.15

2) Sales/CA
Net Sales 38265
Current Asset 38779
Sales/CA 0.99

3) Debt/Equity
Debt 250
Equity 27168
Debt/Equity 0.01
Highly leveraged ,Risky

4) Current Ratio
Current Asset 38779
Current Liabilities 15802
Current Ratio 2.45

5) Inventory Turnover Ratio

Gross Sales 40209
Inventory* 5358
Inventory Turnover ratio 7.50
Note: * excluded packing materials from inventory

6) EBIT/TA
EBIT 14236
Fixed Assets 3820
Current Assets 38779
Total Assets 42599.00
EBIT/Total Assets*100 33.42

7) Return on Capital Employed

EBIT 14236
Capital Employed 27418
Return on Capital Employed 51.92

Calculation of Working Capital

2008-09
Total
Current Assets
Inventories 5599
Sundry Debtors 2450
Cash & Bank Balances 22396
Loans & Advances 8334
(A) 38779

Current Liabilities
Creditors 5199
Unpaid Dividend 79
Other Liability 684
Proposed Dividend 7834
Tax on Proposed Dividend 1255
Other Provisions 1202
(B) 16253

Working Capital (A-B) 22526

Item not considered

Inventories
Packing materials 241
WYETH LTD.

2007-08
(Rs. In Lakhs)

3136
9
622
71

15736
44
98
2

22571
63
2912
46

36183
101
2237
22

10488
29
4120
141

10381

3965
8225
12190
6095
16476
 3652
2912
15736

10381
3965
8225
22571

622
3136
635
4393

3965
8225
12190

6095

10488

(In days)

71
2
46
119
22

141

141

21141
2007-08
(Rs. in Lakhs)

3912
24
3936

25840
250
26090

22154

0.00
0.00

662.86
0.00

34328
3912
8.78

33132
34328
0.97

250
25840
0.01
 34328
13188
2.60

36183
3725
9.71

11776
3912
34328
38240.00
30.79

11776
26090
45.14

2008-09 2007-08
Considered Not Considered Total Considered Not Considered

5358 241 3952 3725 227

2450 2237 2237
22396 22962 22962
8334 5177 5177
38538 241 34328 34101 227

5199 3406 3406

79 70 70
684 644 644
7834 6816 6816
1255 1158 1158
1202 1094 1094
16253 13188 13188

22285 21140 20913

227