PowerPoint Presentation
Final Individual Assessment: IVTL case
Financial Data and Analysis
Here are the requirements for the IVTL final case submission. I have simplified the analysis for you and did the basic calculations for you. I want you to use this supplied data and case to answer the requirements below. Ignore the Data paragraph at the top of page 5 of the case. The Assumptions are the only relevant section on page 5 as I have completed the data analysis for you.
Requirements:
Briefly summarize the case situation and strategic importance of the project. (5 marks)
Assess the quality of the net present value (NPV) analysis given (calculated for you using WACC and IRR). Prepare a payback period analysis using this information, as well. Do you believe the forecast is optimistic, reasonable or pessimistic. (10 marks)
Prepare the ratios on page 8 of the case for IVTL for 2017/2018 through 2021/2022 in chart format. (10 marks)
Compare and assess the ratios in Requirement 3 to Exhibit 5 industry standards and bank covenants over the forecast period. Is IVTL a good candidate for a loan? Why or why not? (5 marks)
State with reasons why you would accept or reject the project. (5 marks)
The report should be completed in 5 pages excluding a cover page.
Due: April 13, 2023. A hard-copy submission is required.
Capital Expenditure Amounts and Financing
Deposit required by banks
Cash
Project
Income Statement
Balance Sheet
Project
Forecast
Net Present Value Analysis (Millions)
Minus for WC needs by yea
250.89
Net Present Value (Millions)
Ratio Calculations ($ millions) – prepare for all years in the forecast
Appendix
Working Capital Analysis
See the NPV analysis
Cash on deposit
Schedule TN-IV
Cost of Project and Means of Finance
(₹ Millions)
Project Cost
Year 0
Particulars Fiscal Year 2016/17
Basis
Land and Land Development 13.20
Building and Civil Works 32.60
Plant and Machinery 232.20
Miscellaneous Fixed Assets 116.70
Preliminary and Pre-Operative Expenses 18.10
Interest during Construction 1.50
Contingency 19.74
Capital Expenditure 434.04
Margin Money WC FY 2017/ XXXXXXXXXX
Total Project Cost 555.95
Means of Finance
Particulars FY 2016/17
Equity Share Capital Balancing Figure 255.95
Long-Term Debt 300.00
Total Means of Finance Total Project Cost 555.95
Source: Created by the author.
Schedule TN-IV
Cost of Project and Means of Finance
(₹ Millions)
Project Cost
Year 0
Particulars Fiscal Year2016/17
Basis
Land and Land Development 13.20
Building and Civil Works 32.60
Plant and Machinery 232.20
Miscellaneous Fixed Assets 116.70
Preliminary and Pre-Operative Expenses 18.10
Interest during Construction 1.50
Contingency 19.74
Capital Expenditure 434.04
Margin Money WC FY 2017/ XXXXXXXXXX
Total Project Cost 555.95
Means of Finance
Particulars FY2016/17
Equity Share Capital Balancing Figure255.95
Long-Term Debt 300.00
Total Means of Finance Total Project Cost555.95
Source: Created by the author.
Schedule TN-VI
Income Statement
(₹ Millions)
Fiscal Year 2017/18 2018/19 2019/20 2020/21 2021/22
Particulars Basis
Sales Revenue Sales 1, XXXXXXXXXX, XXXXXXXXXX, XXXXXXXXXX, XXXXXXXXXX,644.52
Raw Material Consumption Cost Operating Expenses (OPEX) 1, XXXXXXXXXX, XXXXXXXXXX, XXXXXXXXXX, XXXXXXXXXX,983.39
Repairs and Maintenance OPEX 1. XXXXXXXXXX1.2 XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX1.54
Power, Fuel, and Water OPEX XXXXXXXXXX2 XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX35
Material Handling and Transport OPEX 6. XXXXXXXXXX7.9 XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX.26
Other Manufacturing Expenses OPEX XXXXXXXXXX4 XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX43
Total Cost 1, XXXXXXXXXX, XXXXXXXXXX, XXXXXXXXXX, XXXXXXXXXX,084.96
Add Opening Stock of Work in Progress Working Capital (WC) - XXXXXXXXXX1 XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX12
Less Closing Stock of Work in Progress WC XXXXXXXXXX2 XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX41
Cost of Production 1, XXXXXXXXXX, XXXXXXXXXX, XXXXXXXXXX, XXXXXXXXXX,084.67
Add Opening Stock of Finished Goods WC - XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX
Less Closing Stock of Finished Goods WC XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX
Cost of Goods Sold (COGS) 1, XXXXXXXXXX, XXXXXXXXXX, XXXXXXXXXX, XXXXXXXXXX,082.93
Gross Profit Sales - COGS XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX
Salaries OPEX XXXXXXXXXX6 XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX10
SG&A Expenses OPEX XXXXXXXXXX2 XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX20
Earnings before Interest, Tax, Depreciation, and Amortization XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX
Depreciation OPEX XXXXXXXXXX7 XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX00
Operating Profit (Earnings before Interest and Tax XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX
Interest on Long-Term Debt Long-term Debt XXXXXXXXXX3 XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX
Interest on Working Capital Loan WC XXXXXXXXXX6 XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX10
Profit Before Tax XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX
Tax @ 30% Case, "Other Assumptions" XXXXXXXXXX5 XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX66
Profit after Tax XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX
Note: SG&A = selling, general, and administrative expenses.
Source: Created by the author.
Schedule TN-VI
Income Statement
(₹ Millions)
Fiscal Year 2017/182018/192019/202020/212021/22
Particulars Basis
Sales Revenue Sales 1, XXXXXXXXXX, XXXXXXXXXX, XXXXXXXXXX, XXXXXXXXXX,644.52
Raw Material Consumption Cost Operating Expenses (OPEX)1, XXXXXXXXXX, XXXXXXXXXX, XXXXXXXXXX, XXXXXXXXXX,983.39
Repairs and Maintenance OPEX 1. XXXXXXXXXX1.2 XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX1.54
Power, Fuel, and Water OPEX 22.23