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    ABC Case Study

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    Akanksha K
    - ABC Ltd raised Rs. 1.5 crore capital and Rs. 1.2 crore from banks at 14% interest for its Product A machine costing Rs. 21 lakh with 12% annual depreciation. - Projected sales, costs, profits and debt repayment over 5 years with increasing capacity utilization and production. - As of March 1, 2014 the balance sheet shows total assets of Rs. 33.48 lakh including net non-current assets of Rs. 18.48 lakh and current assets of Rs. 15 lakh with no current or long term liabilities.

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    ABC Case Study

    Uploaded by

    Akanksha K
    26 views5 pages
    - ABC Ltd raised Rs. 1.5 crore capital and Rs. 1.2 crore from banks at 14% interest for its Product A machine costing Rs. 21 lakh with 12% annual depreciation. - Projected sales, costs, profits and debt repayment over 5 years with increasing capacity utilization and production. - As of March 1, 2014 the balance sheet shows total assets of Rs. 33.48 lakh including net non-current assets of Rs. 18.48 lakh and current assets of Rs. 15 lakh with no current or long term liabilities.

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    - ABC Ltd raised Rs. 1.5 crore capital and Rs. 1.2 crore from banks at 14% interest for its Product A machine costing Rs. 21 lakh with 12% annual depreciation. - Projected sales, costs, profits and debt repayment over 5 years with increasing capacity utilization and production. - As of March 1, 2014 the balance sheet shows total assets of Rs. 33.48 lakh including net non-current assets of Rs. 18.48 lakh and current assets of Rs. 15 lakh with no current or long term liabilities.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    26 views5 pages

    ABC Case Study

    Uploaded by

    Akanksha K
    - ABC Ltd raised Rs. 1.5 crore capital and Rs. 1.2 crore from banks at 14% interest for its Product A machine costing Rs. 21 lakh with 12% annual depreciation. - Projected sales, costs, profits and debt repayment over 5 years with increasing capacity utilization and production. - As of March 1, 2014 the balance sheet shows total assets of Rs. 33.48 lakh including net non-current assets of Rs. 18.48 lakh and current assets of Rs. 15 lakh with no current or long term liabilities.

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    © All Rights Reserved
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    You are on page 1of 5

    ABC Ltd

    Shares Cost/Share
    capital 1,500,000 150000 10
    4 Promoter 400,000 20,000 each

    Amount
    raised
    from
    Bank 1,200,000 @ 14%

    For Product A

    Machine 2100000
    depriciatio 12%
    goods to be 72%

    Capacity
    Utilization
    ratio 50%

    Indirect E 1,160,000 SG&A // Inc @15% for Y2 an Y3, @12% for Y4 andY5

    Goods
    Sold on
    credit 35 days

    Repayme
    nt to
    creditors 60 days 55

    2013 2014 2015 2016


    Utilization 50% 52% 54% 55%
    Production 100,000
    50,000 52,000 54,000 55,000
    Units avail 72% 74% 76% 78%
    Goods avail 36,000 38,480 41,040 42,900
    SP @125 125 133 140 149
    Total Sales 4,500,000 5,098,600 5,764,068 6,386,823
    Raw Materi 45 47 49 51
    Total Raw 1,620,000 1,800,864 1,997,499 2,171,550
    Labor Cost 20 22 24 27
    Total Labor 720,000 846,560 993,168 1,141,998
    Total Prod 2,340,000 2,647,424 2,990,667 3,313,548

    Comission 360,000 407,888 461,125 510,946


    Profit 2,160,000 2,451,176 2,773,401 3,073,275
    Outstandin1.25 Months
    Debt Repayment 25% 25%
    // IR will inc to 16%, if coverage ratio<8.5 // repay atleast 20% of outstanding debt

    Capex
    2nd 100000
    3rd 100000
    4th 120000
    5th 120000

    Y3, @12% for Y4 andY5

    50

    2017
    56% Tax 30%
    100,000
    56,000
    80%
    44,800
    158
    7,069,871
    53
    2,358,435
    29
    1,311,834
    3,670,268

    565,590
    3,399,603

    33%
    of outstanding debt
    Balance Sheet, March 1, 2014

    Assets
    NCA
    Property, Plant, Equipments 2100000
    Less: Depreciation 252000
    Total NCA 1848000
    CA
    Capital 1500000

    Total Assets 3348000


    Liabilities
    Curret Liabilities
    Short Term Loans payable 0
    Long Term Liabilities

    Total Liabilities 0

    Shareholders' Equity
    Promoter's Contribution 400000

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