A presentation on the recapture strategies of HMT watches

1. HMT – RECAPTURING THE MARKET RAJALAKSHMI.V SIMS

7. RECAPTURE STRATEGY

9. Financial Strategy- Existing Status 5 Years Balance Sheet (HMT Watches Limited) 5987.7 6420.3 7490.2 8571.3 9942.9 5477.3 6237.3 8195.4 9664.9 11305.5 Profit and Loss Account 1158.7 973.4 29.0 6.3 - Misc. Expenditure -813.0 -931.7 -856.3 -1233.7 -1487.0 Net Current Assets (Working Capital) 1650.6 1858.6 1836.0 2010.6 2131.8 Less: Current liabilities 837.6 926.9 979.7 776.9 644.8 Current assets 0.1 0.1 0.1 0.1 0.1 Investments 2.0 0.8 1.1 1.1 0.7 Machinery in transit 0.2 0.2 0.2 0.0 - Capital Work-in-Progress 162.4 140.2 120.7 132.6 123.6 Net Block APPLICATION OF FUNDS 5987.7 6420.3 7490.2 8571.3 9942.9 5929.8 6365.4 7425.3 8506.4 9878 Loan Funds 3.0 - - - - Resources & Surplus 54.9 54.9 64.9 64.9 64.9 Share Holders Funds - Capital 31.03.2005 31.03.2006 31.03.2007 31.03.2008 31.03.2009 As at . SOURCES OF FUNDS (Rupees Millions)

14. Sales & Production Forecasting No. of years No. of units produced per day No. of working days in a year Total production and sales 1 100 310 31000 2 105 310 32550 3 110 310 34100 4 115 310 35650 5 120 310 37200

15. Calculation of ROI year Cash flow Depreciation @ 20% Cash Flow after Depreciation tax Cash Flow after Tax & Depreciation Cumulative Cash Flow 1 1860000 800000 1060000 Nil 1060000 1060000 2 1953000 800000 1153000 Nil 1153000 2213000 3 2046000 800000 1246000 Nil 1246000 3459000 4 2139000 800000 1339000 Nil 1339000 4798000 5 2232000 800000 1432000 Nil 1432000 6221000