Name- Soham Vivek Mahajan

Email Id- sohammahjan510@gmail.com

Phone No- 9730160355

Q.1)

What should be the company's next steps to increase its profits? Should he take
up new projects from the government? If yes, what are the risks involved? How
can he mitigate those risks?
➔ Ans

• As a consultant my viewpoints would be that, Mr. Kishore has been in this

industry from last two decades so he knows how to mitigate the losses and
increase the profit, but eventually due to covid times and the uncertainties
that are involved in this times Mr. Kishore should take right decision for
increase in profit generation.

• Steps to increase the profits are:

1) Hire new employees with reduction in salary which will help to
produce operative outcome.
2) This Covid times have produced some sudden Lockdown in this
country, but the transportation of essential services was going with
a full flow, and for this process proper roads and road construction
is a need for hour, so sooner Tesla Construction would get a Contract
for road construction.
3) Various Subsidiary schemes have been launched by government for
manufacturing industry including machineries required for
company.
 4) Search for Tender opportunities other than the 3 districts and look
for more opportunities and thus collaborate with the Government
and take new projects.
5) Generate a IPO for Tesla Construction for funds.

• He should take new Government projects to increase the profits and

avoid the mitigation of losses.

• Risk factors involved in this might be:

1) Sudden Lockdown which could lead to stoppage in road
construction and lead to loss, workers could go back home if
lockdown extended.
2) Capital Generation which leads to loan generation from banks.
3) Breakdown of machineries which would require extra capital.
4) Safety of Workers in Covid times.

• To mitigate these risk factors involved are :

1) Precaution of workers is a necessary.
2) Work with government to provide lockdown updates in advance to
avoid the hazzle.
3) Provide safe environment to the workers.
4) Work to finish the project on time, to get the payments on time
Q.2

How should he choose to invest company's current cash reserves? Should he

continue to expand his current business, or should he try to diversify his business?
(E.g., taking up projects of construction of buildings) Why or why not?
➔ Ans

• He should invest company’s cash reserves in the development of the

current projects and should continue to expand his current business.
• He could invest the cash reserves in share market or generate an IPO to
expand the current business.
• He should continue his current business because the company specialized
on bitumen roads in road construction, generated profits at higher
percentage using the same business few years ago, with the reputation and
quality the company is providing from last two decades he should focus on
same business and look to expand the business.

THANK YOU