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ANALYSIS
SUBMITTED TO SUBMITTED BY
Ms. KIRAN UDAY MALHOTRA
UBS, PU LALIT SONDHI
Table of contents
• Project Planning
• Financial analysis
• Cost of project
• Means of finance
• Estimates of sales and production
• Cost of production
• Working capital requirements and its financing
• Profitability projections
• Projected cash flow statement
• Projected balance sheet
• Multi year projections
PROJECT PLANNING
Before stating a project, we need to answer
certain questions like
• Can we produce?
• Can we sell?
• Can we earn?
FINANCIAL ANALYSIS
To answer previous questions a lot of attention is
given towards financial analysis which includes the
following:-
1. Cost of project
2. Means of financing
3. Estimates of sales & production
4. Cost of production
5. Working capital requirement & its financing
6. Profitability projections
7. Projected cash flow statements
8. Projected balance sheet
COST OF PROJECT
It represents the total of all items of outlay
associated with a project which are supported by
long term funds. It is the sum of outlays of the
following:-
• Land and site development
• Building and civil works
• Plant and machinery
• Engineering fees
• Misc. fixed assets
• Preliminary and capital issue expenses
• Pre-operative expenses
• Initial cash losses
MEANS OF FINANCE
It consists of:
• Raw materials and components
• Stocks of goods in process (also called work -in-
process)
• Stocks of Finished goods
• Debtors
• Operating expenses
• Consumable stores
Working Capital
Requirements
Principal Sources of Working capital Finance are:
• Working capital advances provided by commercial banks
• Trade credit
• Accruals and Provisions
• Long term source of financing