Corporate Finance

Exhibit 16.7

Cash budget for Dalmia Cement (Bharat) Limited

(Rs lac)

Budget

Cash

budget for the year 1997-98

Full year

Apr 97

May 97

Jun 97

Jul 97

Aug 97

Sept 97

Oct 97

Nov 97

1. Opening cash and bank

654

654

654

654

654

654

654

654

654

Balance as on 01.04.97

2. Unutilised cash credit limit with banks 32

32

32

32

32

32

32

32

32

3.

Receipts:a. Sale of cement

23,000

1,790

3,691

5,593

7,450

9,418

11,342

13,020

14,586

b. Sale of scrap materials

50

5

9

14

10

30

34

40

45

c. Sale of unserviceable assets

1

1

1

1

1

1

1

1

1

d. Others

10

1

2

3

4

5

6

7

8

4. Term loan from banks

1,800

0

0

1,000

1,000

1,000

1,500

1,500

1,500

5. Interest receipts

15

2

4

6

8

10

12

14

16

Total (A)

25,562

2,485

4,393

7,303

9,158

11,150

13,581

15,268

16,842

6.

Payments:a. Additions to fixed assets (land, building

1,500

5

15

25

125

500

700

900

1,100

machinery, etc.)

b. Repayment of term loans

330

75

75

75

150

150

150

c. Salaries, wages, & benefits

1,450

120

240

360

480

615

735

850

1,000

to employees

d. Purchase of raw materials

1,050

85

165

245

331

412

503

587

670

e. Purchase of packing bags

1,300

107

215

322

428

536

642

749

857

f. Purchase of fuel (coal lignite, etc.)

3,600

302

608

909

1,213

1,515

1,819

2,121

2,424

g. Purchase of stores & spares

700

55

112

168

216

278

328

390

441

h. Payment of electricity board (Power)

2,400

201

406

594

791

968

1,188

1,486

1,680

Exhibit 16.7 contd.