MOCK TAKEOVER PROPOSAL OF SAP
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Transcript of MOCK TAKEOVER PROPOSAL OF SAP
MOCK PROJECTION OF FINANCIAL STATEMENT
B DEEPAK 14MBA1010
DISCLAIMER
THE REPORT WHICH HAS BEEN PREPARED AS AN ASSIGNMENT FOR CLASS PURPOSE FOR THE MBA PROGRAM AT VIT (CHENNAI CAMPUS) AS A PART OF THE COURSE.ALL
THE DATA HAS BEEN TAKEN FROM THE COMPANY WEBSITE AND FEW OTHER SOURCES BASED ON INTERNET,THEREFORE SOME VALUES ARE MODIFIED ,NOT ALL THE VALUES
BASED ON BALANCE SHEET. SO I AM NOT RESPONSIBLE FOR ANY LIABILITY .
OBJECTIVE
To project the Profit & loss A/c.
Projection of Balance Sheet.
Cash Flow / Fund Flow Statement.
A Take Over Proposal.
PROPOSAL OF FIXED INVESTMENT COST
COST OF OPERATION
PROJECTED PROFIT & LOSS A/C
PROJECTED BALANCE SHEET
CASH FLOW STATEMENT
ASSUMPTIONS
Company is assumed to be going concern.
Sales unit is 200 .
Depreciation is not considered .
Salary is assumed to be 3000
Escalation is assumed to be 1%
INTERNAL RATE OF RETURN (IRR)
RECOMMENDATIONS
In order to increase the internal rate of return we need to , Increase the sales Decrease the Operational Cost, Average Annual Cost and Financial Cost Discounting Rate should be decreased as well as Tax .
NOTE : Decrease in Average Annual Investment cost , will decrease the NET WORTH of the
company When rate of Interest decreases , IRR increases and When Tax is decreased , IRR increased
REGRESSION CHART OF SAP