27 April 2011
In preparation of CMA DATA / PROJECT REPORT FINANCIAL DATA,how the sales forecast,and other datas in estimated year and proposed years can be made? Is it 1) depending on Nature of busines or 2)using ratio analysis Return on capital Employed,net profit % or other ratios or 3)depending on overall perception by asking client? Pls give me proper guidance and also tell me the books which is helpful in this regard?
28 April 2011
In fact all three that you have noted - they are not contradictory nor are they mutually exclusive. The returns on assets is different for different businesses and even for same business it is different during different phases of the economy. I remember a case about twenty years back one of the major non-ferrous metal manufacturer had gone for subtantial expansion. The project report was prepared by a top metallurgy consultant of India jointly with a leading merchant banker. The project failed to deliver because teh international metal (non-ferrous) prices moved southwards and did not recover for five years!
A good book that comes to my mind is "Projects......." by Dr. Prasanna Chandra.
(I wish to keep the status open as I am sure a lot more can be suggested on this topic.)