LONDON, MeTROPOLITAN UNIVERSITY a) ep aington cotege (rows wes) Module Code & Module Title MN7029NI - Financial Decision Making Level? - MN7O19NI ;ncial Decision Making Assessment Type: 30% Group Coursework ‘Semester: 2025 Spring Assignment Due Date: April 18, 2025 Assignment Submission Date: April 18, 2025, ‘Submitted To: Mr. Prakash Ghimire We confirm that we understand our coursework needs tobe submitted ontine via My second teacher under the relevant module page before the deadline in order for our assignment to be accepted and marked We are fully aware that late submissions willbe treated as non-submission and.a mark of 20r0 willbe awarded,Group Coursework Presentation Simulation Company - Bakelt Bakery Submitted to: Mr. Prakash Ghimire Assignment Submission Date: April 18, 2024 Level/Semester: MBA 2024 Spring, LIMBAI MN7029NI - Financial Decision Mokingi, LONDON. @ METROPOLITAN UNIVERSITY ‘Aeington xtege eae Group Coursework Presentation Simulation Company - Bakelt Bakery Submitted by: Name UniversityID | College ID Bandana Shrestha 24059388 | NPOIMB75250022 Bibek Shah 24059359 | NPOIMBTS250019 Bikers Ril 20049437 | NPoIB7S250081 Bima Nagarkoti 24059344 | NPOIMB7S250034 Kapil Prasad Shrestha 24050370 | NPOIMB7S250101 ‘MN7029NI- Financial Decision MakingLonoon METROPOLITAN UNIVERSITY, Team Members Bimala Nagarkoti 50019 NPoIMB7S250 J ) Bikems Kapil Prasad Bandana Shrestha NPOIMB7S2: Rijal Shrestha NPOIMBTS: NPOIMB7S250101Topic of Contents + Executive Summary * Introduction to the company + Past Financial Analysis + Key Decisions Taken + Financial Forecast * Key Decisions for Projections * Conclusion + AppendixExecutive Summary This report provides a detailed assessment of the bakery's financial performance and projection from FY 2020/21 to FY 2026/27. The analysis reveals consistent growth in profitability, with improving margins, return ratios, and operation: efficiency. ‘The company has strategically reduced its debt burden and is projected to be debt-free by FY 2026/27, enhancing its solvency and interest coverage significantly. With this analysis, the company demonstrates sound financial management and a positive long-term outlook.Introduction to the company ‘+ A bakery café and food business that began its journey in 2018 with a single outlet. ‘+ Has since evolved through various market conditions and economic challenges, + Has strategically positioned itself for expansion and long-term growth, Currently, + Operates two more branches in Kathmandu and a manufacturing plant. + Is positioning itself for further growth through hotel supply partnerships and expanded business deliveries.Timeline the company 2023/24 2025/26 zcaliza Continued the growth Continued solified its Shifted focus to recovery market presence, 2026/27 20189 Planned to expand thee Established the initia supply in more sector. akery cate 2020/21 2022/23, 2024/25 Facedsignficant Expanded two addtional Launches 828 operational ehallenges- branches & began marketing initiatives ‘covin-9 ‘manufacturingGroup Coursework Presentation Simulation Company - Bakelt Bakery Financial statement Villa Financial Position S ooBalance Sheet Financial period: FY 2020/21-2023/24 Particular Past2020/21 Past 2021/22 Past 2022/23, Past 2023/24 [Total Non-Current Assets 3.401659.80 3,36764320 543877699 5.372,230.22 “Total Current Assets | 4,022,72236 7:545,98220 5,870.01471 7409,37920 “Total Equity 494361484 5,80446317 681386539. 7186450241 Total Non-Current Liabilities 70882112 37554447 1689.419.51 1339,449.64 Total Liabilities 2,480,76732 5109316223, 4149492631 asmn6o1 + Total Assets growth due to investment in fixed assets and branch expansion. + Equity increased steadily. + Loans peaked in 2022/23 ~ Financing expansion. Ww ‘+ Cash dipped sharply in 2022/23 > Short term Investment, expansion & receivable:Balance Sheet Projected Financial period: FY 2024/25-2026/27 Particular Future 2024/25, Future 2025/26 Future 2026/27 [Total Non-Current Assets 5,307.58183 5.244,664.51 518336051 “Total Current Assets | 8,828,588.34 10,655.82481 13,00497291 “Total Equity 8,365,268.89 9190,78741 10.372,326.90 Total Non-Current Liabilities 945,094.83 500,725.96 E “Total iabilties 577090128 6709,70191 7816,00652 + Total Assets projected to increase due to plans for increasing supply. + Receivables increase — Current assets increase + Liabilities reduce > Loan repayment (indicates financial health). Ww + Equity grows substantially ~ retained profits & stability.Revenue/Sales (inten lakhs NPR) amin. ‘o% aire % win 202 Fiscal Year Revenue/Sales sans Trend 15% 3% 2oisfis 2016/37 * Sales grew 64% till 2023/24 from NPR 84 lakhs to NPR 1.38 crore ~ due to branch addition, and adaption to delivery models for business recovery. * Sales projected to increase to NPR 2.03 crore by 2026/27 (47% growth in 3 years)Group Coursework Presentation Simulation Company - Bakelt Bakery Financial performance of the last 4 yearsProfitability Ratio Based on Sales oferta eee ofeere eres eat $8208 eked saaae, oe won 7 wa 455%. eae 8 19.09% 8 150% 610 wm 8A 070% wom. 108% Fiscal Year Fiscal Year Decreasing COGS directly drives up GPM.Improved GPM Higher Operating Profit Higher EPS, ROE, ROA.2 25 20.00% Bn Profitability Ratio Overall return on assets and investments and Analysis from Owner's Point of View lemploed @ fetunon sets ceeneres rs) Od pe 8 es earn faxzmoat—~—sreazena ~~ amAB~C aR THN al Fiscal Year Fiscal Year ROCE > ROA due to use of leverage (debt) to generate higher returns early on, Higher margins (GPM, NPM) feed into better returns per unit capital/asset, Peaked in 2022/22 due to reinvestment efficiencyP/ERatio Profitability Ratio Required to Market oN © roarsee rice ct Snare @ Book Value Pers 3 so * = Fiscal Year Fiscal Year The earnings per share consistently increased while the market price of the share steadily declined, resulting in a progressively more undervalued stock.P/ERatio Profitability Ratio 7 Required to Market 76 dnt @ cane i Fiscal Year Fiscal Year Stock is generating more earnings relative to its market value each year, Company is sharing more of its growing profits with shareholders as dividend,Inventory Turnover Efficiency Ratio Activity Performance /Turnover e rial Yor rica ear Efficient inventory management. reduc holding costs boosts Gross Margin Etfective use of assets to generate revenue,Tumover Efficiency Ratio Activity Performance /Turnover © coai(oten) ner fats Falcon ner Ras oz + Efficient receivables collection © ~ better cash flow - helps maintain liquidity ratios and supports dividend eer a payouts, ag + Increasing Payable Turnover & © Strong cash flow management rae or Po a Fiscal YearCurrent/Quick Ratio Liquidity Ratio & Coverage Ratio Interest Coverage Fiscal Year Fiscal Year Good liquidity and working capital management With earnings increasing, reliance on debt reducedRatio Capital Structure Ratio + Conservative leverage approach in early years, increased borrowings for expansion, and then reduced debt again + Abalance between growth and financial discipline, * The efficient use of debt helped boost earnings and returns (EPS, ROE) without ane deteriorating liquidity or solvency. or rome Peanea ream Fiscal YearGroup Coursework Presentation Simulation Company - Bakelt Bakery wo Key Decisions Ne ; TakenKey Financial & Business Decisions Taken Strategic Pricing & Cost Optimization + A Branch Expansion in Kathmandu + Opened 2nam branche + Stengthnesphyel preence ri scesbey COVID Adaptation * Quctiy apes to one pattems andontne Focused Marketing & Bulk Supply ‘Manufacturing Plant Setup + Esabionas dedieated production nt + Pojetntorbested Retr on Anes ROA) da | | Finance AllocationsPlans & Projections moving Forward B2B Marketing Push & Supplying Hotels Business Deliveries Continued Business Expansion Continue staff upskilling and internship programs B2B deliveries all over the countryGroup Coursework Presentation Simulation Company - Bakelt Bakery Financial Ratio Analysis (Forecast for next 3 years)Profitability Ratio Based on sales © crete @ sth ao 00s a 3 & 8 8 097% 8B saa ane 10768 wore 108% Fiscal Year Fiscal Year Increasing branches and manufacturing to scale the supply leading to adeProfitability Ratio (io) Profitability Ratio Overall return on assets and investments and Analysis from Owner's Point of View (© rerum enshuchiters Fund Return on Catal Empoyed @ feten on Aes + The company enters a high-efficiency phase. + High operating profit (EBIT) without increasing capital employed + No new equity or debt issued + Strong net margins in the B28 mode! aay aman aiafan aye aus m/s aan? Fiscal YearProfitability Ratio Overall return on assets and investments and Analysis from Owner's Point of View ‘+ EPS more than doubles across 3 years, ‘+ Higher net profits from margin expansion ‘+ No dilution (shares outstanding remain constant) ‘+ DPS scales proportionally based on the 80% payout policy. ++ The dividend payout ratio is maintained to keep shareholders satisfied while stil retaining 20% of profits for reinvestment. Fiscal YearCurrent Ratio Liquidity Ratio Pon 200/21 Fon 200/22 Fon DORIS Pat 20/2 Fiscal Year ons mae ae + Gradually declines as the business optimizes its working capital position + Tighter inventory and receivable management + Less idle cash retained, with profits being reinvested ‘+ No external borrowing, allowing better current assets relative to liabilitiesRatio Capital Structure Ratio Taatenain Fea ton/aa PesOa/ia Pea aORIe Fiscal Year masii6 2036/27 + Full repayment of EMI1&2 + Nonew borrowing ‘+ Expansion funded internally-no debt, no dilution,Group Coursework Presentation Simulation Company - Bakelt Bakery Appendixfsrosorsa) See Group Log Lonoon METROPOLITAN UNIVERSITY, The group log and meting log should be submited as an append side or sides fo your presonation You do not need to prosent it ‘Desarba haw you want about acing te | The group alooated wor based on Sirulaoa(o.9 dd you sign rows, tako | anda! stongths bul made important Geatsons cotecveh) easions colapratwoly m order ovale ‘voryene’s contbution ‘anyone Take eRpeMSTNRy Tor Tang | One oh SppoMTeT TMbETS redo Sure hat the group submited tho deisions.| track doadinos and make sue hat, ‘Did you need w Work GLRSGE oT he ne | Yeu Tate were saaonal meeings | Sietodin class andi'so how ae you" | condletod a tena forums 398 OUD ‘rganse tha group a gat eget? chats osu every senecul, ‘Flow ad you rescve confirm The GTOUP? | Open dabsle was encuraNed, ons moderator was assigned to onsite tat ‘onficts wore solved postvely ‘Bayou ee everyone nthe group ‘ost manbars gave as much as hay onlteutd equa tthe ask? ‘oul, but some add ota task compensator members who Raa Sehoduingwsu08 Tears anying Wal you would oT prove cnaneaon an me Gferenty next ume? ‘management have mera detnod ‘expectations set eaer and encowrege more balances parcpationij, LONDON. METROPOLITAN sg UNIVERSITY tenon cateae Group Work Declaration Equal shares: We the undersigned are unanimous in agreement that each member of our registered group has contributed equally to the work and that all group mambers should share ‘equal marks. ‘Student Name ‘Student ID Signature | Date Bandana Shrestha NPO1MB7S250022 | Bandana 1710472025 Bibek Shah NPO1MB7S250019 | Bibek 17/04/2025 | Bimala Nagarkoti S| NPO1MB7S250034 | Bimala | 17/04/2025 Bikoms Rijal NPO1MB7S250081 | Bikems 1710412025 Kapil Prasad Shrestha NPOTMB7S250101 | Kapil (ES1.80000 1057518000 828030400 Tas142496 D601 ASAI7AORTS W740 gsasiom 565721100 466957540 Tangwso 77220767 Tame aon ‘sssossom 4s179esc0 379036820 Suussezes Gioganzss 7a00.1695 so0is8s2 7 0001000 "sonce00 _4a0.0000 _sonp00m0, ‘486089000 491796000 379036820 ss2see2s6 saneannss 729031695 1010019882 aamgsmon 233636600 20033280 SssusnL38 3ondsen gamd0s2 352450005 253597000 27610100 169623540 DMSinze Amon Ape see — 6568518 Donen se,7eom 37796220, 374258 ‘sooisay sana 5270050, 2ssss7000 230200 131827320. 170585481 2660831, 22023 ° seas “027301 oansrise yenis7526 6736081 soomaor21 105068702 Lnesrase 30665028 gous) 5a13865 39 734525889Leos fosrsi80 tausota0) azaisan pouasist (assess) arse) sssessess ‘Lissa aaah (erases loses) (ossz7605 (e5t33500 (aos) (nasaso) ‘auaissan Cr pea sae) ‘oooaeo} erase esne0095) aaa mass taoaseon) seston 026838) vost “oes aan sana7279) asia sume aeisiscn frames) sess assim aser225 boise) gusazssa) sonses2s sama (sis)ses ss0% san hom nx sas 900% a9 Bax 2xDON, ROPOLITAN UNIVERSITY, i, ; Thank you!!!