The document outlines key assumptions for a business finance case study, including:
1) Annual gross sales value of Rs. 10,000 crores split across mobile, electronics, and FMCG categories.
2) Cost structures including costs of goods sold, supply chain costs, marketing costs, and indirect costs totaling 95.1% of sales.
3) Capex investment of Rs. 100 crores funded through a term loan and equity.
4) Working capital assumptions for inventory, accounts payable, collections, and taxes.
5) Break even analysis showing a break even volume of 17.35 lakh units and corresponding sales, contribution and gross sales value.
Mahindra &Mahindra Q1FY15 profits better than estimates - Hold - SPA SecuritiesIndiaNotes.com
M&M reported Q1FY15 revenue & profit of INR 103 bn & INR 9 bn, which were better than our estimates because of higher realization for both the Automotive & Farm Equipment Segment (FES). Margins declined 47 bps YoY to 12.4% and EBITDA stood at INR 13 bn.
Cost Segregation Analysis - The Emerging Practice Of Quantity Surveyors And ...theijes
The International Journal of Engineering & Science is aimed at providing a platform for researchers, engineers, scientists, or educators to publish their original research results, to exchange new ideas, to disseminate information in innovative designs, engineering experiences and technological skills. It is also the Journal's objective to promote engineering and technology education. All papers submitted to the Journal will be blind peer-reviewed. Only original articles will be published.
Mahindra &Mahindra Q1FY15 profits better than estimates - Hold - SPA SecuritiesIndiaNotes.com
M&M reported Q1FY15 revenue & profit of INR 103 bn & INR 9 bn, which were better than our estimates because of higher realization for both the Automotive & Farm Equipment Segment (FES). Margins declined 47 bps YoY to 12.4% and EBITDA stood at INR 13 bn.
Cost Segregation Analysis - The Emerging Practice Of Quantity Surveyors And ...theijes
The International Journal of Engineering & Science is aimed at providing a platform for researchers, engineers, scientists, or educators to publish their original research results, to exchange new ideas, to disseminate information in innovative designs, engineering experiences and technological skills. It is also the Journal's objective to promote engineering and technology education. All papers submitted to the Journal will be blind peer-reviewed. Only original articles will be published.
We make VAT Reporting in GCC countries very easy. Read our free VAT guide for a step-by-step walkthrough of how to use Tax reporting tool by Azdan to solve the Value Added Tax in GCC countries.
Financial Ratio Breakdown of Waste ManagementAmandaRouquette
Intermediate Financial Management Course presentation of Waste Management organization. This includes:
full breakdown of business and industry position, Ratio and Financial Statement Analysis on ROE, and a final proposal to Improve Return on Equity on the Income Statement.
The future of the OTC Derivative Market - Eugene stanfieldLászló Árvai
Impact of mandatory central clearing on OTC derivatives
Cost of doing business
Collateral management efficiency
Regulations still to shape how we do business
Ratios Analysis, Pro Forma Statements, Projected Cash flows of Proposed Project, Net Present Value, Internal Rate of Return, Payback Period, Discounted Payback Period, Break Even Analysis, Scenario Analysis, As-if Analysis
Extra Credit Assignment, Econ 140 (3)Choose any topic discussed.docxnealwaters20034
Extra Credit Assignment, Econ 140 (3%)
Choose any topic discussed in the managerial economics class and write a 3 – 5 page essay with the following specifications.
1. Typed – Double spaced
2. Font Size - 12
3. Margins – 1 inch (top, bottom, right and left)
The paper should consist of the following:
(a) A discussion on your selected topic covering the main points.
(b) At least one news article related to the chosen topic, showing the application of the concept in the real world. You can easily find such news articles on google.
(c) Write in your own words what you’ve understood from the article(s) and how this relates to what you have learned in the Econ 140 class.
(d) Download (or scan) the articles and upload them along with your paper. The articles will not be included in the page count.
Other Requirements:
· Title of the paper and Your Name (Top corner of the first page)
· References (These should be on the last page of the assignment)
You can earn a maximum of 3% on this assignment. The grading TA’s decision regarding your assignment grade will be final; the assignment is not subject to grade-disputes. The assignments will be randomly distributed among the TAs for grading purpose.
(Keep in mind that late submissions or submissions via email will not be graded.)
1
Front Page
2
Memo
TO:
FROM:
DATE:
SUBJECT:
<text follows>
3
Table of contents
Appendix 1: Pro Forma FCF Page 4
Appendix 2 : Weighted Average Cost of Capital Page 5
Appendix 3 : Balance Sheets Page 6
Appendix 4 : Income Statements Page 8
Appendix 5 : Statements of Cash Flows Page 10
Appendix 6 : 10K Data Collection Page 11
Appendix 7: Market Return and Beta Page 12
4
Pro Format FCF
Value Drivers
Sales Growth 4.07%
Directly related to sales
Operating Expens es (excluding depreciation) 89.86%
Operating Current Assets 17.16%
Operating Current Liabilities 14.31%
Capital Expenditures 4.22%
Not directly related to sales
Depreciation Rate 6.09%
Interest Rate on Debt 5.53%
Interest Rate on ST Inves tments 1.73% <-- 1-year treasury yield (https://www.federalreserve.gov/releases/h15/)
Tax Rate 36.34%
Long term growth rate 0.00%
Unlevered Free Cash Flows Jan-20 Jan-21 Jan-22 Jan-23 Jan-24 Jan-25 Jan-26 Jan-27 Jan-28 Jan-29
Sales $17,255,546 $17,958,617 $18,690,334 $19,451,865 $20,244,425 $21,069,276 $21,927,736 $22,821,174 $23,751,014 $24,718,741
Operating Expenses $15,506,519 $16,138,326 $16,795,877 $17,480,219 $18,192,444 $18,933,688 $19,705,135 $20,508,013 $21,343,605 $22,213,242
Depreciation $620,940 $665,274 $711,414 $759,435 $809,412 $861,425 $915,557 $971,895 $1,030,529 $1,091,552
Earnings Before Interest And Taxes $1,128,087 $1,155,017 $1,183,043 $1,212,212 $1,242,569 $1,274,163 $1,307,044 $1,341,265 $1,376,881 $1,413,947
Taxes $409,958 $419,745 $429,930 $440,530 $451,562 $463,044 $474,993 $487,429 $500,372 $513,842
Net Income $718,129 $735,272 $753,114 $771,682 $791,.
We make VAT Reporting in GCC countries very easy. Read our free VAT guide for a step-by-step walkthrough of how to use Tax reporting tool by Azdan to solve the Value Added Tax in GCC countries.
Financial Ratio Breakdown of Waste ManagementAmandaRouquette
Intermediate Financial Management Course presentation of Waste Management organization. This includes:
full breakdown of business and industry position, Ratio and Financial Statement Analysis on ROE, and a final proposal to Improve Return on Equity on the Income Statement.
The future of the OTC Derivative Market - Eugene stanfieldLászló Árvai
Impact of mandatory central clearing on OTC derivatives
Cost of doing business
Collateral management efficiency
Regulations still to shape how we do business
Ratios Analysis, Pro Forma Statements, Projected Cash flows of Proposed Project, Net Present Value, Internal Rate of Return, Payback Period, Discounted Payback Period, Break Even Analysis, Scenario Analysis, As-if Analysis
Extra Credit Assignment, Econ 140 (3)Choose any topic discussed.docxnealwaters20034
Extra Credit Assignment, Econ 140 (3%)
Choose any topic discussed in the managerial economics class and write a 3 – 5 page essay with the following specifications.
1. Typed – Double spaced
2. Font Size - 12
3. Margins – 1 inch (top, bottom, right and left)
The paper should consist of the following:
(a) A discussion on your selected topic covering the main points.
(b) At least one news article related to the chosen topic, showing the application of the concept in the real world. You can easily find such news articles on google.
(c) Write in your own words what you’ve understood from the article(s) and how this relates to what you have learned in the Econ 140 class.
(d) Download (or scan) the articles and upload them along with your paper. The articles will not be included in the page count.
Other Requirements:
· Title of the paper and Your Name (Top corner of the first page)
· References (These should be on the last page of the assignment)
You can earn a maximum of 3% on this assignment. The grading TA’s decision regarding your assignment grade will be final; the assignment is not subject to grade-disputes. The assignments will be randomly distributed among the TAs for grading purpose.
(Keep in mind that late submissions or submissions via email will not be graded.)
1
Front Page
2
Memo
TO:
FROM:
DATE:
SUBJECT:
<text follows>
3
Table of contents
Appendix 1: Pro Forma FCF Page 4
Appendix 2 : Weighted Average Cost of Capital Page 5
Appendix 3 : Balance Sheets Page 6
Appendix 4 : Income Statements Page 8
Appendix 5 : Statements of Cash Flows Page 10
Appendix 6 : 10K Data Collection Page 11
Appendix 7: Market Return and Beta Page 12
4
Pro Format FCF
Value Drivers
Sales Growth 4.07%
Directly related to sales
Operating Expens es (excluding depreciation) 89.86%
Operating Current Assets 17.16%
Operating Current Liabilities 14.31%
Capital Expenditures 4.22%
Not directly related to sales
Depreciation Rate 6.09%
Interest Rate on Debt 5.53%
Interest Rate on ST Inves tments 1.73% <-- 1-year treasury yield (https://www.federalreserve.gov/releases/h15/)
Tax Rate 36.34%
Long term growth rate 0.00%
Unlevered Free Cash Flows Jan-20 Jan-21 Jan-22 Jan-23 Jan-24 Jan-25 Jan-26 Jan-27 Jan-28 Jan-29
Sales $17,255,546 $17,958,617 $18,690,334 $19,451,865 $20,244,425 $21,069,276 $21,927,736 $22,821,174 $23,751,014 $24,718,741
Operating Expenses $15,506,519 $16,138,326 $16,795,877 $17,480,219 $18,192,444 $18,933,688 $19,705,135 $20,508,013 $21,343,605 $22,213,242
Depreciation $620,940 $665,274 $711,414 $759,435 $809,412 $861,425 $915,557 $971,895 $1,030,529 $1,091,552
Earnings Before Interest And Taxes $1,128,087 $1,155,017 $1,183,043 $1,212,212 $1,242,569 $1,274,163 $1,307,044 $1,341,265 $1,376,881 $1,413,947
Taxes $409,958 $419,745 $429,930 $440,530 $451,562 $463,044 $474,993 $487,429 $500,372 $513,842
Net Income $718,129 $735,272 $753,114 $771,682 $791,.
1. Page - 1
Business
Finance
Role
-‐‑ Case
Study
Contents: Business Plan
2. Page - 2
Assumptions
S.No. Key Assumptions Details Sub Details Sub Detais-2 Sub Details-3
1 GSV
(stands
for
Gross
Sales
Value) Rs 10000
Cr
in
Total
Value
for
the
Year
2 Basis
several
past
trends,
Category
wise
GSV
Break
Up
Sales
Weightage
assumed
as
follows:
Product
Segment Category
% Avg.
Ticket
Size
/
Per
Unit
Market
Share
Assumed
Mobile 40% 10500 40% Overall
Market
share
assumed
41%
Electronics 35% 15000 35%
FMCG 25% 5000 25%
3 GSV
Buildup
/
Scale
up
levels
1st
Qtr 20%
of
Annual
GSV
2nd
Qtr 45%
of
Annual
GSV
3rd
Qtr 70%
of
Annual
GSV
4th
Qtr Balance
30%
of
Annual
GSV
4 Gross
Margin
(Net
of
COGS)
@
20%
-‐ assumed
evenly
on
all
product
segments
3. Page - 3
Assumptions
S.No. Key Assumptions Details Sub Details Sub Detais-2 Sub Details-
3
5 Direct
Cost
(assumed
directly
variable)
Supply
Chain
Cost 5%
Cash
Back
&
Discount 2%
Indirect
Cost
(assumed
Fixed
/
semi-‐fixed) 3%
Marketing
Cost
(assumedFixed
/
semi-‐fixed) 5%
(All
%
above
are
on
GSV)
6 Capex
Investment
100
Cr
7 Capex
is
assumed
to
be
amortized
over
10
Years.
Hence
10%
Depreciation
assumed
8 Tax
Expense
-‐ assumed
@
30%
net
of
Deferred
Tax
Adjustments
9 Funding
of
Capex
is
assumed
to
be
done
as
follows:
12%
5
Year
Term
Loan
against
Land
&
Building
at
beginning
of
the
FY
16-‐17
60%
Balance
through
Equity 40%
Repayment
assumed
to
be
commencing
from
beginning
of
1st
Qtr of
FY
16-‐17
EMI
assumed
to
be
accrue
on
simple
interest
basis
on
60
principal
repayments
of
1
Cr
each
&
not
on
compounded
interest
repayment
basis
Interest
Payments
assumed
to
be
included
as
part
of
given
cost
structure
in
Indirect
Costs
4. Page - 4
Assumptions
S.No. Key Assumptions Details Sub Details Sub Detais-2 Sub
Details-3
10 Working
Capital
Assumptions
a Inventory
Model
Back
to
Back 70%
Upfront
Inventory
-‐ Outright
Purchase 30%
Inventory
Turnover
assumed
in
Days 14
b Prepaid
Shipments
-‐ assumed
back
to
back
swap
linked,
else
nominal
1-‐2
day
float
65%
Post
Shipment
Delivery
Collections 35%
Time
Lag
in
case
of
Post
Shipment
Delivery
Collections
in
Days
7
c Accounts
Payable
Credit
Period
Assumed
from
Creditors
for
Upfrom
Outright
Purchases
in
Days
7
d Taxes
Collected
Sales
Tax
in
Days 25
Service
Tax
in
Days
-‐ presumptive
revserse
charge
collections
(GTA
/
Business
Auxiliary)
15
Supply
Chain
&
Indirect
Cost
assumed
to
include
10%
GTA
cost
&
relevant
other
reverse
charge
line
items
e.g.
Manpower
Supply,
Rent
a
Cab,
Advocates
etc.
15
Supply
Chain
-‐ GTA
@
25%
of
exp.
Value 10%
Indirect
Cost 10%
5. Page - 5
Assumptions
S.No. Key
Assumptions
Details Sub Details Sub Detais-2 Sub Details-3
11 For
KPI
purposes,
following
KPI
indices
are
taken
on
adhoc presumptive
basis
for
illustrative
demonstration
in
KPI
Dashboard,
the
same
may
not
be
relevant
for
actual
industry
numbers
Benchmark
Targets
Max.
Score,
Weightages
assigned
for
evaluation
against
overall
BSC
matrix
Top
3
Competition
Best
actual
achievement
10%
of
Baught Out
Inventory
assumed
to
be
slow
moving
ageing
>
30
days 10%
No
Overageing Debtors
assumed NIL
12 Provision
for
B/Debts,
if
any
assumed
to
be
factored
into
indirect
costs
Sales
Returns
assumed
to
be
factored
into
Gross
Margin
13 Growth
Rate
in
Net
Earnings
Assumed
@
5%
YoY
on
going
concern
basis
for
approximate
Business
Valuation.
Valuation
is
derived
from
WACC
capitalisation
rate
as
overall
cost
of
capital
rather
than
cost
of
equity
6. Page - 6
Gross Sales Value & Contribution Build up
GSV
Build
Up
FY
2016-‐17
(Rs Crores)
Particulars Qtr1 Qtr 2 Qtr 3 Qtr 4 Total
Mobiles 800 1000 1000 1200 4000
Electronics 700 875 875 1050 3500
FMCG 500 625 625 750 2500
Total 2000 2500 2500 3000 10000
Contribution Build Up (Rs Crores)
Particulars Qtr1 Qtr
2 Qtr
3 Qtr
4 Total
Mobiles 8 10 10 11 38
Electronics 5 6 6 7 23
FMCG 10 13 13 15 50
Total 22 28 28 33 111
Qtr1
Qtr
4
0
2500
5000
7500
10000
MobilesElectronicsFMCG Total
GSV Build up
Qtr1
Qtr
3
Total
0
50
100
150
MobilesElectronicsFMCG Total
Contribution Build up