I think it should not be too difficult for the company to meet a requirement of INR 1,300 Mio during FY16.
1) A rough measure for cash flows available - PAT + Depreciation was INR 800 Mio plus for FY15. Assuming some of it goes for debt repayment and some for incremental investments (along with INR 100 Mio for dividends), the company should still have INR 500-600 Mio comfortably from internal accruals for FY16
2) Over the last two years, the year end working capital positions have been the following for the company:
Clearly, the company has been using its internal accruals to fund the working capital requirements. It can easily use more working capital loans from banks (Limits available - INR 1,850 Mio vs actual borrowing of INR 459 Mio for 31.03.2015). Even if we assume that 75% of requirements are met through bank working capital borrowings, it should generate additional liquidity of INR 500 Mio.
3) If we take both 1) and 2) into account, the company would have to borrow only around INR 200-300 Mio in term debt. The gearing, even accounting for the additional WC and term borrowings, still comes to <0.5
Thats the strength of the company - real good accruals, strong profitability and expansion with less amount of debt.
As for knitting, we need to study it in greater detail.