Corporation Test Paper.docx

1. Chart out different valuation approaches and methods along with their key pros and cons. 2. Suppose you are analyzing the financial statements of a Company. Below are the key line items of the income statement and balance sheet.

Details (INR '000) FY2017 Revenue 45,000 COGS 18,000 Gross profit 27,000 SG&A expenses 6,750 Employee benefit expenses 6,750 Depreciation and amortization 2,250 Finance costs 540 Other operating expenses 450 Operating profit 10,260 Tax expenses 2,565 Net profit 7,695 Details (INR '000) FY2017 Cash and bank balance 5,614 Investments 1,500 Inventory 2,466 Receivables 7,397 Total 16,977 PP&E 7,500 Other assets 1,650 Total assets 26,127 Trade payables Other current liabilities Total Long term loan Share capital Additional paid in capital Reserves Total Total equity and liabilities Calculate: A. B. C. D. E. F. G.

EBITDA and EBIT for FY2017 EBIT margin RoNW for FY2017 Tax rate for FY2017 Net working capital Inventory turnover days Debt to equity ratio

4,438 200 4,638 1,500 200 3,500 16,289 19,989 26,127

Forecast: (Assuming revenue will grow by 20% in the next year with a gross margin of 60%) H. Inventory for FY2018 (at 40 days plus your roll number) I. Receivables for FY2018 (at 40 days plus your roll number) J. Trade payables for FY2018 (at 40 days plus your roll number)