Case Study Of Xyz Metal Enterprises

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CASE STUDY NOTE: Since the case study contained confidential information the names of the firm have been changed to keep the original identity undisclosed Case study - 1 Xyz metal enterprises ltd Xyz metal enterprises is a MSME enterprise engaged in engineering and fabrication work on job basis .the company was incorporated in 2014 as private limited company under the companies act 1956. XYZ has approached the corporation for a term loan assistance of ₹ 100 lakhs for establishing its SSI unit to be engaged in sheet metal and structural fabrication on leased KIADB land. Technical appraisal Project proposed The proposal is for setting up a unit to be engaged in sheet metal 7 structural metal fabrication under SME sector at plot no.26&27,…show more content…
There’s is slight decrease in the performance for the unit for the period ending 31/03/2015 was on account of brief lockout of Toyota motors ltd. Nevertheless, the unit is working on profitable basis FINANCIAL AND PROFITABLITY MINIMUM SUBSCRIBED ACTUALLY PROVIDED INDICATORS: 1. PROMOTER’ CONTRIBUTION 25.00% 30.38% 2. DEBT EQUITY RATIO – PROJECT 2.00:1.00 1.72:1.00 3. DEBT EQUITY RATIO- OVERALL 2.00:1.00 :1.00 4. DEBT SERVICE COVERAGE RATIO 1.50:1.00 1.8:1.00 5. SECURITY MARGIN RETAINED 25.00% 29.80% 6. OVERALL SECURITY MARGIN RETAINED 25.00% 29.80% 7. RETURN ON CAPITAL AFTER TAXATION IN NORMAL YEAR OF MAXIMUM OPERATING CAPACITY 33.48% 8. MARGIN OF PROFIT ON SALES BEFORE TAXATION IN NORMAL YEAR OF MAXIMUM OPERATING CAPACITY 37.40% 9. INTERNAL RATE OF RETURN 35.84% 10. BREAKEVEN POINT a) AS A PERCENTAGE OF INSTALLED CAPACITY b) IN TERMS OF SALES 42.82% ₹ 77.08 LAKHS REPAYMENT PERIOD 5 YEARS 6 MONTHS EXCLUDING A MORATORIUM PERIOD OF 18 MONTHS IMPLEMENTATION PERIOD 12 MONTHS EMPLOYMENT POTENTIAL 1.PROPOSED CAPITAL INVESTMENT PER PERSON EMPLOYED 30 PERSONS 5.27 LAKHS POWER

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