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EVS Pvt. Ltd. Case Study
EVS Pvt. Ltd. Case Study
Product A
▪ Production Capacity of 100,000 Units, with utilization ratio of 60%,
62%, 64%, 65% and 66% for year 1, 2, 3, 4, 5 respectively
▪ Sales of 75%, 76%, 77%, 79% and 82% of total available units for sale ▪
Selling price of INR 150 per unit is expected to grow @7%
▪ Raw material costs INR 60 per unit, labor expenses @ INR 27 per unit;
expected growth of 5% and 11% respectively
Others:
▪ SG&A to grow @15% for year 2 and 3 and 14% for year 4 & 5
▪ Tax @ 30%
▪ Creditors days to come down to 55 in year 4 and 50 in year 5
▪ Outstanding expenses account for 1.25 months
▪ Debt repayment @30% in year 3 & 4 and 35% in year 5
Please calculate BEP of the Company and assess the efficiency and
profitability of the business calculating various ratios.
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