This spreadsheet supports STUDENT analysis of the case “Guna Fibres, Ltd.” (Case 12).
This spreadsheet was prepared by Michael J. Schill, Associate Professor of Business Administration. Copyright © 2013 by the University of Virginia Darden School Foundation, Charlottesville, VA. All rights reserved. For customer service inquiries, send an e-mail
[email protected]. No part of this publication may be reproduced, stored in a retrieval system, posted to the Internet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of the Darden School Foundation. Feb. 4, 2013
Exhibit 1 GUNA FIBRES, LTD. Guna Fibres Annual Income Statements (in thousands of Indian rupees)
Gross Sales Excise Tax Net Sales Cost of Goods Gross Profits Operating Expenses Depreciation Interest Expense Profit Before Tax Income Tax Net Profit
2010 64,487 9,673 54,814 44,496 10,318 3,497 769 910 5,142 1,545 3,597
2011 75,867 11,380 64,487 53,866 10,621 4,829 909 1,240 3,644 1,093 2,551
Cash Accounts Receivable Inventory Total Current Assets Gross Plant, Property, and Equipment Accumulated Depreciation Net Plant, Property, and Equipment Total Assets
895 2,390 2,974 6,259 8,868 1,170 7,698 13,957
762 2,673 3,450 6,885 10,096 1,484 8,612 15,497
Accounts Payable Notes to Bank Accrued Taxes Total Current Liabilities Owners' Equity Total Liabilities and Equity
603 0 -62 541 13,416 13,957
822 798 -90 1,530 13,967 15,497
Exhibit 2 GUNA FIBRES, LTD. Guna Fibres Monthly Sales, 2011 Actual and 2012 Forecast (in thousands of rupees)
January February March April May June July August September October November December Year
2011 2012 (Actual) (Forecast) 2,012 2,616 2,314 2,892 3,421 4,447 7,043 8,804 12,074 13,885 15,294 17,588 14,187 16,315 7,144 8,576 4,025 5,031 3,421 4,447 2,717 3,531 2,214 2,767 75,867 90,899
Exhibit 5 GUNA FIBRES, LTD. Monthly Financial Statement Forecast (in thousands of Indian rupees) Assumptions Excise Tax Rate Cost of Goods Sold / Gr Sales Annual Operating Expenses / Annual Gr Sales Depreciation / Gross PP&E Interest Rate on Borrowings (and Deposits) Income Tax Rate Dividends Paid (000s in March, June, Sep, Dec)
15% 73.7% 6.0% 10% 14.5% 30% 500
Minimum Cash Balance (000s) Accounts Receivable Collection In One Month In Two Months Purchases / Gr Sales in Two Months Direct Labour / Purchases Last Month Capital Expenditures (every third month) Accounts payable / Purchases
750 40% 60% 55% 34% 350 50%
Full y Gross Sales (1) Excise Taxes (2) Net Sales Cost of Goods Sold Gross Profit Operating Expenses (3) Depreciation (4) Interest Expense (5) Profit Before Taxes Income Taxes Net Profit Dividend
Cash Accounts Receivable (6)
Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 2,717 2,214 2,616 2,892 4,447 8,804 13,885 17,588 16,315 8,576 5,031 4,447 3,531 2,767 392 434 667 1,321 2,083 2,638 2,447 1,286 755 667 530 415 2,224 2,458 3,780 7,483 11,802 14,950 13,868 7,290 4,276 3,780 3,001 2,352 1,928 2,131 3,277 6,489 10,233 12,962 12,024 6,321 3,708 3,277 2,602 2,039 296 327 503 995 1,569 1,987 1,844 969 569 503 399 313 454 454 454 454 454 454 454 454 454 454 454 454 84 84 87 87 87 90 90 90 93 93 93 96 10 21 57 144 261 372 417 336 198 105 62 44 -253 -233 -96 309 767 1,071 882 88 -177 -150 -211 -281 -76 -70 -29 93 230 321 265 26 -53 -45 -63 -84 -177 -163 -67 217 537 750 617 62 -124 -105 -147 -197 500 500 500 500 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 762 750 750 750 750 750 750 750 750 750 750 750 750 2,673 2,773 3,291 5,011 10,301 17,996 24,748 25,697 17,194 9,006 6,295 5,028 3,715
Inventory Total Current Assets Gross Plant, Property, and Equip (7) Accumulated Depreciation Net Plant, Property, and Equipment Total Assets
3,450 4,509 8,051 6,885 8,032 12,092 10,096 10,096 10,096 1,484 1,568 1,652 8,612 8,527 8,443 15,497 16,559 20,535
14,057 19,818 10,446 1,739 8,706 28,524
19,838 30,889 10,446 1,826 8,619 39,508
21,867 40,613 10,446 1,913 8,532 49,146
16,672 9,019 6,085 5,151 4,056 3,841 4,427 42,170 35,466 24,029 14,907 11,100 9,619 8,891 10,796 10,796 10,796 11,146 11,146 11,146 11,496 2,003 2,093 2,183 2,276 2,369 2,462 2,558 8,792 8,702 8,612 8,869 8,777 8,684 8,938 50,963 44,168 32,641 23,776 19,877 18,303 17,829
Accounts Payable (8) Note Payable (9) Accrued Taxes (10) Total Current Liabilities Shareholders' Equity (11) Total Liabilities & Equity
822 1,223 2,421 798 1,712 4,722 -90 -166 -236 1,530 2,769 6,908 13,967 13,790 13,627 15,497 16,559 20,535
3,818 11,910 -265 15,464 13,060 28,524
4,837 21,567 -172 26,232 13,277 39,508
4,487 30,787 58 35,332 13,813 49,146
2,358 34,541 0 36,899 14,063 50,963
1,384 27,840 265 29,488 14,680 44,168
1,223 971 761 935 994 16,385 8,687 5,147 3,610 3,858 291 0 -45 -108 -192 17,899 9,658 5,863 4,437 4,660 14,742 14,118 14,013 13,866 13,169 32,641 23,776 19,877 18,303 17,829
Inventory Detail Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Purchases (12) 1,439 1,591 2,446 4,842 7,637 9,673 8,973 4,717 2,767 2,446 1,942 1,522 1,871 1,989 Direct Labour & Other Mftg Costs (1 489 541 832 1,646 2,596 3,289 3,051 1,604 941 832 660 517 636 Cost of Goods Sold 1,928 2,131 3,277 6,489 10,233 12,962 12,024 6,321 3,708 3,277 2,602 2,039 Inventory (14) 3,450 4,509 8,051 14,057 19,838 21,867 16,672 9,019 6,085 5,151 4,056 3,841 4,427 Notes: (1) Follows forecast in Exhibit 2 (2) Gross Sales * Exercise Tax Rate (3) Annual Operating Expenses / 12 (4) Gross PPE * Depreciation Rate / 12 (5) Notes Payable (t - 1) * Interest Rate / 12 (6) AR(t - 1) + GSales(t) - 40% * GSales(t - 2) - 60% x GSales(t - 2) (7) GPPE(t -1) + Capex(t) (8) 50% * Purchases(t) (9) Total Assets - AP - AccTax - ShrEquity (10) AccTax(t - 1) + IncTax(t) or 0 if positive balance and month of quarterly payment
(11) ShrEquity(t - 1) + NetProfit(t) - Dividend(t) (12) 55% * GSales(t + 2) (13) 35% * Purchases(t-1) (14) Inventory(t - 1) + Purchases(t) + Direct Labour(t) - COGS(t)
Full year 2012 Jan-13 Feb-13 90,899 3,401 3,616 13,635 77,264 66,993 10,272 5,454 1,074 2,026 1,717 515 1,202
2012 50,824 17,145
Exhibit 6 GUNA FIBRES, LTD. Forecast of Accounts by Month 40 35 30 25
Millions of Rupees
20 15 10 5 0 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Net Sales Accounts Payable
Net Sales Accounts Receivable Inventory Accounts Payable Notes Payable
Jan-12 2 3 5 1 2
Feb-12 Mar-12 2 4 3 5 8 14 2 4 5 12
Apr-12 May-12 7 12 10 18 20 22 5 4 22 31
Jul-12
Aug-12 Sep-12 Oct-1
Accounts Receivable Notes Payable Jun-12 15 25 17 2 35
Jul-12 Aug-12 14 7 26 17 9 6 1 1 28 16
Inventory
12
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Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Inventory
Sep-12 4 9 5 1 9
Oct-12 Nov-12 Dec-12 4 3 2 6 5 4 4 4 4 1 1 1 5 4 4
