Tata Chemicals-operating Cycle

Statement Of Cost Sl. No.

Particulars

1 2 3 4 5

Purchase of raw materials Opening Raw Materials Closing Raw Materials Raw Material Consumed(1+2)-3 Direct Labour*

6

Prime Cost(4+5)

Rupees in Million Rupees in Million

184.08 219.02 -34.94 176.92 141.98

7 8 9 10 11 12

Other Manufacturing Expenses Depriciation Power & Fuel Rent Repairs & Maintainance (Machinery) Rates & Taxes**

13

Total manufacturing expenses

240.31

14

Gross Works Cost(7+13)

382.29

15 16

Opening Work in Progress Closing Work in Progress

17

Net change in Work in Progress(15-16)

18

Net Works Cost(14+17)

19 20

Administrative Expenses Insurance

21 22 23 24 25 26 27

Repairs & Maintainance(Building,others) Freight Printing & Stationary Salary*(294*0.4+36.11+52.16) Rates & Taxes** Legal & Professional Directors' Fee

28

Total Admistrative Expenses

417.80

29

Cost Of Production(18+28)

796.39

30 31

Opening Finished Goods Closing Finished Goods

15.8 122.82 16.6 61.45 23.64

78.47 82.17 -3.7 378.59

17.95 31.95 64.93 8.36 206.21 11.82 76.44 0.14

121.26 135.63

32

Net Change in Finished goods(30-31)

-14.37

33

Cost Of Goods Sold(29+32)

782.02

34 35 36 37 38 39 40 41 42

Selling & Distribution Expenses Advertisement and sales Promotion Discount Warranty Travelling & Conveyance Communication Total Selling & Distribution Expenses Cost Of Sales(33+40)

36.9 88.95 41.57 72.61 16.18 256.21 1038.23

OPERATING CYCLE CALCULATION 2006 ### Sl.No.

ITEMS 1

(A) 2

(B) 3

Raw Material Conversion Period (a) Raw Material Consumption (b) Raw Material consumption Per Day(a/360) © Raw Material Inventory (d) Raw Material Inventory Holding Days(c/b) Work-In- Progress Conversion Period (a) Cost Of Production (b) Cost Of Production Per Day(a/360) © Work-In- Progress Inventory (d) Work-In-Progress Inventory Holding Per Day(c/b) Finished Goods Conversion Period (a) Cost Of Goods Sold (b) Cost Of Goods Sold Per Day(a/360) © Finished Goods Inventory

©

(d) Finished Goods Inventory Holding Days(c/b)

4

Collection Period (a) Credit Sales*** (b) Sales Per Day(a/360) © Debtors

(D) 5

(E)

Rupees in Million 1466.02 ### ### 4.1 260.66 ### ### 64

2255.19 ### ### 6.3 0.68 ### ### 0

2183.81 ### ### 6.1 234.23 ### ### 39

3,997.72 ### 11.10 ### 765.54 ###

(d) Debtors Outstanding Days(c/b) Creditors Defferal period (a) credit Purchase (b) Purchase Per Day(a/360) © Creditors (d) Creditors Outstanding Days(c/b)

### 69

461.86 ### 1.28 ### 591.93 ### 461 ###

Note: *---Direct labour is assumed to be 60%& salary to be 40% **---rates and Taxes 2/3rd is assumed to be factory &1/3rd to be office ***----All sales are assumed on credit

SUMMARY OF OPERATING CYCLE CALCULATION (NUMBER OF DAYS) Gross Operating Cycle 1

Inventory Conversion Period

(i) (ii) (iii)

Raw Material(A) Work-In-Progress(B) Finished Goods© Total Inventory Conversion period

Number Of Days 2006

64 0 39 103

2

Debtor Conversion Period(D)

69

3

Gross Operating Cycle(1+2)

172

4

Payment Defferal Period(E)

461

NET OPERATING CYCLE(3-4)

-289