Waltham Oil Sl.

no Date Transaction name 10000

30-Apr Opening Balance

Notes paid to National for equipment Furniture Insurance Coverage Operating Expenses Rent for Jun and jul,Aug Oil & grease after starting inv Employee Payroll Utilities Misc Expenses Royalty to National Personal Withdrawals Revenues Parking Space Rentals From servicing automobiles Totals Closing Balance

2490 6000 1200 4500 1910 34560 1700 6600 26400 4500 3300 105300 118600 28740

89860

capital Eqpt Uniforms Starting inv May rent Safety deposit

40000 25200 4130 6320 1500 2850

transaction Statement foer Waltham Oil and Lube case Sl.no 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Date Name of transaction Cash db cr 40000 10000 1200 6320 4500 25200 2850 34560 8230 23400 3300 2490 4500 Prepaid Insurance db

1-Apr Opening Balance 30-Apr Working Capital infusion Payment made to insurance co for 12 month 30-Apr insurance 30-Apr Order for furniture 1-May Opening oil and grease inventory 1-May Uniforms and other inventory 1-May Equipment Purchase downpayment 1-May Payment of safety deposit 31-Jul Wages for 3 months - May, Jun, Jul 31-Jul Inventory purchases for servicing 31-Jul Royalty to Waltham Inc 31-Jul Rent from parking spaces 31-Jul Monthly instalment for eqpt 31-Jul Rent for May,June,July 31-Jul Payments due from parking custrs and truckers 31-Jul Payment to utility companies 31-Jul Payment due to workers 31-Jul Personal Withdrawal 31-Jul Utilities 31-Jul Unearned revenue through parking rental 31-Jul Cost of insurance for 3 months 31-Jul Cost of merchandise used 31-Jul Revenues from oil changes 31-Jul Miscellaneous Expenses

1200

4500 1700 400

105300 6600

Prepaid Insurance cr

db

Equipment cr

db

Furniture cr

db

inventory cr

Accounts Receivable db cr

6000 6320 4500 25200

8230

2490 1070

300 9260

Safety Deposit db cr

Accounts Payable db cr

Wage expenses db cr

operating Expenses db cr db

Revenues

6000

2850 34560 23400

4500 350 2100 1700 300 9260 6600 350 2100

Revenues cr

Unearned revenues Paid in capital db cr Db Cr DB-Cr 40000 10000

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

3300

1070

4500 400

105300

Sl.no

Transaction

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41

Opening balance Power, fuel and water Salaries Wages and bonuses - Mfg Salaries - Admin Rent Rates & taxes - mfg Repairs - plant Repairs - Others Communication,travel and conveyance Insurance & legal Ads and sales promo Other sundry exp Interest to banks Excise duty paid Advance tax to It Payment to creditors Purchase of Freehold land improvement to freehhold land Purchase of fixed assets Interest recvd (for investment) Commisison recvd Export incentives Misc income Bad debt written off, recovered Receipts from debtors Secured Loans from fin insti Unsecured loans from banks Proceeds from sale of fixed assets Tax deducted at source from interest received Revenues from operations Write off of bad debt Balance of xcise duty - adjustment Depreciation adjustments for land improvement Depreciation on other fixed assets - adjustment Write off of misc exp Provision for doubtful debt created Interest paid to banks Provision for tax Tranfer of capital wip to fixed asset Transfer of leasehold land to freehold land Purchase of Raw Material Raw material consumed

42 43 44 45 46 47 48

WIP Consumed Finished goods purchased Cost of finished goods sold Packing material purchased Packing material used Transfer from Reserves and Surplus to Re Transfer from P&L account to RE

Income statement -2000 Revenues from operations Cost of finished goods sold Packing material used Salaries Wages and bonuses - Mfg Power, fuel and water Rent Rates & taxes - mfg Gross Margin Loss from sale of fixed assets Depreciation adjustments for land improvement Depreciation on other fixed assets - adjustment Balance of xcise duty - adjustment Ads and sales promo Other sundry exp Salaries - Admin Repairs - plant Repairs - Others Communication,travel and conveyance Insurance & legal Write off of misc exp Provision for doubtful debt created Interest recvd (for investment) Commisison recvd Export incentives Misc income Operating Income Interest expenses Provision for tax Net income 2084706 -1249707 -29506 -60069 -13957 -61468 669999 -1349 -2342 -45208 -99240 -47118 -61836 -81600 -4846 -8256 -54898 -23606 -501 -5851 4606 2245 1437 87 241723 -40644 -92938 108141

Non cash opera Depreciation Non cash reven Net Change in W Cash Generated CFFI PPE CFFF Proceeds from Proceeds from Total

Net cash flow Opening balanc Closing balance

Opening balance Power, fuel and water Salaries Wages and bonuses - Mfg Salaries - Admin Rent Rates & taxes - mfg Repairs - plant Repairs - Others Communication,travel and conveyance Insurance & legal Ads and sales promo Other sundry exp Interest to banks Excise duty paid Advance tax to It Payment to creditors Purchase of Freehold land improvement to freehhold land Purchase of fixed assets Interest recvd (for investment) Commisison recvd Export incentives Misc income Bad debt written off, recovered Receipts from debtors Secured Loans from fin insti Unsecured loans from banks Proceeds from sale of fixed assets Tax deducted at source from interest received Revenues from operations Write off of bad debt

90207 -13957 -60069 -81600 -61468 -4846 -8256 -54898 -23606 -47118 -61836 -32359 -95743 -90326 -1292051 -3022 -27554 -198559 4606 2245 1437 87 2108 1955394 51215 110000 2801 -255

Balance of xcise duty - adjustment Depreciation adjustments for land improvement Depreciation on other fixed assets - adjustment Write off of misc exp Provision for doubtful debt created Interest paid to banks Provision for tax Tranfer of capital wip to fixed asset Transfer of leasehold land to freehold land Purchase of Raw Material Raw material consumed WIP Consumed Finished goods purchased Cost of finished goods sold Packing material purchased Packing material used Transfer from Reserves and Surplus to Re Transfer from P&L account to RE 62577

62577

60889

14136

229423

9352

529524

Cash

Inventories rm

Inventories - WIP

Inventories FG

SSPM

Sundry debtors (AR)

90207 -13957 -60069 -81600 -61468 -4846 -8256 -54898 -23606 -47118 -61836 -32359 -95743 -90326 -1292051 -3022 -27554 -198559 4606 2245 1437 87 2108 1955394 51215 110000 2801 -255

49535

8489

175077

8179

402594

-1955394

2084706 -2382

266626 -255272

255272

-249625

249625 1054428 -1249707 30679 -29506

62577

60889

14136

229423

9352

529524

Cash flow direct minus change in assets 126930 71347 1173

Plus Change in Liabilities 59682

Total 2017458 -1321054 -30679 -60069 -13957 -61468

-3497

-95743 -47118 -61836 -81600 -4846 -8256 -54898 -23606 -274 2245 1437 87 8285 -32359 -90581 32883

-5577

Cash flow - Indirect method CFFO Net income 108141

Losses from sale of assets Interest Received from investments Non cash operating exp Depreciation Non cash revenue Net Change in WC Cash Generated in Operations CFFI PPE CFFF Proceeds from secured loans Proceeds from unsecured loans Total Net cash flow Opening balance of cash Closing balance of cash

1349 -4606 47550 0 -119551 32883 -221728

51215 110000 161215 -27630 90207 62577

-8567

16421

181532

27854

pbdd

Prepaid Excise duty

Prepaid Income Tax

Leasehold Land

-2990

19918

90951

32639

95743 90326

-2108

255 2382 -99240

-5851

-4785

-8567

16421

181532

27854

Description Cash recvd from customers Purchase of raw materials packing material salaries wages and bonuses power fuel and water rent rates and taxes

excise duty payment ads and sales other sundry Salaries - Admin Repairs - plant Repairs - Others Communication,travel and conveyance Insurance & legal Provision for doubtful debt created Commisison recvd Export incentives Misc income Interest expenses Provision for tax

4422

-3118

7807

27554

540311

-198389

Impropve Accumulated Accumulated Improvements to Free hold ment to depreciation on depreciation on leasehold land Land freehold leasehold land freehold land land 4422 -776 0 0 0

Gross Block

Depreciation on gross block

338435

-153181

3022 27554 198559

-4150

-2342 -45208

7467 4785

4422

-3118

7807

27554

540311

-198389

Balance sheet Sources of fund Equity Capital Retained Earnings Total equity Secured loans Unsecured loans Total Uses of Fund Fixed assets Leasehold land Improvements to lh land Less accumulated dep Gross Block Accumulated dep Freehold land Improvement to FH land Capital WIP Investments Current Assets AR Inv - RM Inv-FG Inv-WIP SSPM PBDD Cash Advance Exc duty Adv it Current liabillities AP Provision for tax Interest payable Misc exp

1999 112650 337779 450429 1102 270000 721531

2000 112650 445920 558570 52317 380000 990887

Change 0 108141 108141 51215 110000 269356

32639 4422 -776 338435 -153181 0 0 7641 16 402594 49535 175077 8489 8179 -2990 90207 19918 90951 -253916 -96335 0 626 721531

27854 4422 -3118 540311 -198389 7807 27554 174 16 529524 60889 229423 14136 9352 -8567 62577 16421 181532 -313598 -189273 -8285 125 990887

-4785 0 -2342 201876 -45208 7807 27554 -7467

126930 11354 54346 5647 1173 -5577 -27630 -3497 90581 -59682 -92938 -8285 -501 269356

16

125

174

8285

313598

189273

112650

Investments

Misc Exp

Capital WIP

Interest payable

Trade Creditors

Provision for tax

Share Value

16

626

7641

253916

96335

112650

-32359

-1292051

-501 40644 92938 -7467 266626

1054428 30679

16

125

174 0

8285

313598

189273

112650

2000

94990

1225

52317

380000

445920

Capital Reserve

Share premium account

Inv allowance Revenues reserve and Expenses

Secured loans

Unsecured loans

RE

2000

94990

1225

239564 -13957 -60069 -81600 -61468 -4846 -8256 -54898 -23606 -47118 -61836

1102

270000

4606 2245 1437 87

51215 110000 -1349 2084706 -99240 -2342 -45208 -501 -5851 -40644 -92938

-1249707 -29506 -2000 0 -94990 0 -1225 0 -347705 0 52317 380000 98215 347705 445920

Balance check

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0

T No 1 2 3 4 5 6 7 A-1 A-2 8 9 10 11 A-3

Particulars Opening Land and building New machinery bought Sale of old machines Insurance premium for Fixed assets and bss disruption Dividend of 1991 paid Repurchase of shares Long-term debt capital raised Sales Finished goods consumption Finished goods at End of the year Raw materials purchase Labour expense incurred Rent expense and paid Utilities paid for Depreciation expense Old m/c New m/c Building Advertising expense paid for R&D expense paid for Insurance expense Amortization of patent Selling & administration exp Trf of old m/c to sale of Fixed assets A.c Profit on sale of Fixed Assets to IS Interest expense income tax expense Income tax paid to Federal Government Debtors collected Finished Goods - depreciation adjustment Short-term debt taken Trf of net profits to Retained Earnings Dividend for 1992

Cash 113,000 -425000 -520000 215500 -97500 -10000 -26000 510000 1886250 -452700

AR

Inv - RM 69,500 55,000

-660000 -25000 -82000

12 13 A-4 A-5 14 A-6 A-7 A-8 15 16 A-9 17 C-3 C-4

-70000 -63250

-195750

-58750 -39150

200000

199,650

69,500

55,000

Exhibit 1 Chemalite, Inc. Balance Sheet as at December 31, 1991 and 1992

31-Dec-91 31-Dec-92 (Actual) (Pro forma)

Assets

Change

o o o o I o i i

Cash Accounts receivable Inventry- Raw Materials Inventry- Finished goods Prepaid insurance PPE Less: Acc. Deprn. Land Patent Total assets _
Liabilities and SE

$113,000
69,500 55,000 212,500 (10,625) 100,000

$9,490
139,530 75,450 104,680 65,000 1,120,000 (56,000) 250,000 75,000

103,510 (70,030) (20,450) (104,680) (65,000)

$539,375

(907,500) 45,375 (250,000) 25,000 1,783,150 -1,243,775

o f o f f f f f f

Taxes payable Short term debt Deferred income taxes Notes payable (10%) Long-term debt (10%) Dividends payable Common stock Retained earnings Treasury stock

10,900 10,000 500,000 18,475 -

$539,375 Operating current assets Operating current liabilities Net operating WC 124,500 10,900 113,600

950 (200,000) (26,730) (425,000) (510,000) (2,000) (106,995) 26,000 1,783,150 -1,243,775
9,950 200,000 26,730 425,000 510,000 12,000 500,000 125,470 (26,000)

384,660 36,680 347,980

(260,160) (25,780) (234,380)

Prepaid Acc. Dep. Inv - FG Insurance Machinery Machinery Land 0 0 212,500 -10,625 520000 97500

Building 0 250000 0 600000

Acc dep Building

Patent 0 100,000

10625 -26000 -30000

-32500 -25000 -191250

65,000

541,250

-26,000

250,000

600,000

-30,000

75,000

Exhibit 2 Chemalite, Inc. Income Statement for the years ended Dec. 31, 1991 and 1992

31-Dec-91 31-Dec-92 (Actual) (Pro forma)

CFS (Direct method)

Sales Materials Labor Rent utilities

Depreciation

$754,500
195,000 275,000 50,000 30,000 10,625 193,875 22,500 25,000 75,000 750 23,750 7,500 39,375 10,900

$1,886,250
452,700 660,000 25,000 82,000 61,625 604,925 70,000 63,250 32,500 25,000 195,750 (24,250) 58,750 183,925 64,930

Gross profit Advertising R&D Insurance Amortization of patent Selling & admin exp
Gain on sale of eqpt

Interest expense Prototypes Legall fees Income before taxes less: Income taxes Net income

28,475

118,995 CFFO

Taxes ST payable debt 10,900

Deferred Notes LT IT payable debt 0 0 0 425000

Dividend Common Retained Treasury payable Stock Earnings Stock 0 10,000 500,000 18,475

-10000 -26000 510000

200000

10,900

200,000

425,000 510,000

500,000

18,475

-26,000

Chemalite, Inc. Statement of Cash Flows for the year 1992 (Indirect method)

Sale of old m/c

Revenue Expenses 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 -30,000 0 0 0 0 0 0 0 0 0 0 0 5,000 0 0 0 -25,000

215500

1886250 -452700

-660000 -25000 -82000 10625 -26000 0 -70000 -63250 -32500 -25000 -195750 -191250 -24250 24250 -58750 0 -39150 -5000

186,025