Financial Aspects of Management Essay

927 Words Dec 27th, 2012 4 Pages
Financial Aspects of Management

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Parikshit Jain (08EM-028)

Varun Sharma (08EM-051)

Anushree Singh (08EM-012)

Paras Sharma (08EM-027)

Suneet Sharma (08EM-047)

Raunaq Singh (08EM-034)
Contents
1) Introduction 3 a) Nestle India 3
2) EPS Calculation 3 a) EPS Break-up 3
3) D/E Calculation 4 a) Debt and Equity Values 4
4) Interest Coverage Ratio 5 a) EBIT - Interest Values 5
5) Project Financing 6 a) EPS 6 b) D/E 7 c) Coverage Ratio 7 d) Equity- Debt 8 e) Equity- Preference Shares 8
6) Conclusion 10

Introduction

Nestle India
Nestle India is a subsidiary of Nestle S.A. of Switzerland. Nestle India manufactures a
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Millions unless otherwise mentioned

• The company’s current EPS is 42.92 before financing of the project. The EPS of the company has been consistently increasing from 2004-2007.

• The company has to take into consideration the EPS figures before deciding on the financing alternatives for the 250 Cr project

| |2007 |2006 |2005 |2004 |
|EPS |42.92 |
|Share Capital |964.16 |
|Reserves & Surplus |3220.08 |
|Shareholder's Funds (E) |4184.24 |
|Secured Loans |28.71 |
|Unsecured Loans |0.00 |
|Total Debts (D) |28.71 |
|D/E |0.69 |

Note: All figures mentioned in this report are in Rs. Millions unless otherwise mentioned

• The company’s current D/E is 0.69 before financing of the project.

| |2007 |2006 |2005 |2004 |
|D/E% |0.69 |
|Total Income

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