Financial Planning (3PGDM04)

PGDM-Trimester -3
Case Study (10 Marks)

Objective of the Assignment: To provide practical assessment on the topic & application of
various concepts
Unit Covered: 3,4

Case Title: Operating and cash cycle analysis of Precision cam shaft Ltd.

Precision Cam shaft is public limited in India. It is small cap company with capabilities to
provide various shafts to automobile industry. The key clients are Tata Motors, Maruti
Suzuki and M & M. Details are furnished as below to assess the operating cycle and cash
cycle to identify the areas of improvement for Precision Cam Shaft and Ultra shaft Ltd.

Am in cr. Precision cam shaft Ltd Ultra shaft Ltd

Sales 89.36 138.55
Gross profit margin % 13.35 17.45
Cash sales as % of total 12.25 % 21.88%
sales
Beginning Inventory 10.55 18.98
Closing Inventory 12.35 22.54
Beginning A/R 15.87 18.55
Closing A/R 17.41 19.74
Beginning A/P 11.36 8.89
Closing A/P 13.88 10.25

Q1. Find out the operating cycle & cash cycle of Precision Cam Shaft and Ultra shaft
Ltd. (5 Marks)

Q2. Provide details analysis of which company can focus on which segment to bring
improvement in specific efficiency. (5 Marks)
Important Notes:
1. Deadline for PDF submission: 13th /April/2024 before 11:00 PM on ERP. Every
member of the group need to submit the same PDF on ERP.
2. All the calculations need to be presented in the PDF.
3. 5 to 7 members in a group.