Pakistan Cables, the country’s oldest and most reputable cable manufacturer was established over 5 decades ago in 1953 as a joint venture with BICC. In the subsequent six decades, Pakistan Cables has earned a reputation as a market leader and premier cable manufacturer in the country and a company that does not compromise on quality. Pakistan Cables has been listed on the Karachi Stock Exchange since 1955. In November 2010 General Cable Corporation, a Fortune 500 company and global leader in cable manufacturing invested in Pakistan Cables by taking up a 25% equity stake in the company.
Pakistan Cables is part of the Chinoy Group of Companies, which includes International Industries (IIL) and International Steels Limited (ISL), as well as
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But PCAL believes that its current capital structure is optimal as all its financial needs are being satisfied by its retained earnings and short term borrowings. They believe that their decision to pay off all long term loans and also the 25% equity stake that Generable cables bought has accelerated the growth and expansion of the company which can be seen through the growth in the EPS from 2011 to 2013. As a result, the company does not plan to change its capital structure in the near future and plans to run its day to day business using short term running finance.
Financial Sources
When deciding on what financial sources to use for its projects or assets, PCAL considers a number of different aspects. When deciding over the source of financing, PCAL analyzes the nature of the project which needs to be financed. Initially retained earnings are preferred for financing but if retained earnings are not sufficient, then PCAL decides to use debt that is financed through banks. They prefer banks over any other source of financing as the loans are secured.
For projects which have a relative smaller payback period and are expected to yield greater cash inflows in the near future, short term financing is preferred. Projects which require large investment with lesser initial returns, long term financing is used. In 2013, PCAL paid off all its long term debt and has moved to be all equity since it
As shown in the ratios chart, working capital has increased by $13M. Maturities of short-term investments and cash flow from operations are projected to be sufficient to sustain the company’s overall financing needs, including capital expenditures. The following corporate strategic plan identifies a project that needs financial backing.
As shown in the ratios chart, working capital has increased by $13M. Maturities of short-term investments and cash flow from operations are projected to be sufficient to sustain the company’s overall financing needs, including capital expenditures. The following corporate strategic plan identifies a project that needs financial backing.
The question that transcends the project is whether equity investors be sufficiently rewarded to justify there financing interests. The answer to this question is dependent
iii. Can this project be financed with current cash flow from the company? Why or why not?
Depending on how much additional investment needed and what will be the payback period. Another cash flow statement will be needed for further reviewing to decide whether additional funding will be a good
Rapid changes in governments, people’s non-trust towards the government and number of Martial Laws and declaration of Emergencies in Pakistan has made this country to be a high risk country for foreign investment. Examples of political factors are changes in government, changes in govt. policies, corruption, type of government, regulations, trade restrictions, tax policies, tariffs etc.
James Gitanga was not sure about the unusual capital structure of the Company, avoiding the long-term debt. We believe that the long-term capital structure across the industry was pre-determined by the high capital expenditures and steady cash inflows. Thus, issuing long-term debt was more preferable. Besides, by issuing debt they would enjoy the tax shield since interest on long-term debt is tax-deductible.
Management’s discretion to set the firm’s capital structure is applicable at the firm level. Since any one particular project could be financed entirely with equity, another project could be financed with debt, and the firm’s overall capital structure would remain unchanged, financing costs are not relevant in the analysis of a project’s incremental cash flows according to the stand-alone principle.
Optimal Funding Terms: - An organization's proportion of short and long haul obligation ought to additionally be considered when analyzing its capital structure. Capital structure is regularly alluded to as a company's obligation to-value proportion, which gives understanding
1) Define Asthma, and other major respiratory illnesses Asthma is a disease in the lungs that causes inflammation of the airways which stops a person from breathing. Bronchiectasis is a disease which damages the airways and causes them to widen and become soft which limits airflow. 2) Symptoms Symptoms of both asthma and bronchiectasis are shortness of breath, wheezing, coughing, chest pains and mucus build up 3) Physiology Physiology of asthma is that asthma limits airflow into the lungs which limits breathing. 4) Causes/triggers
3. Can this project be financed with current cash flow from the company? Why or why not?
Socialization is the process which people learn the attitudes, values, and behaviors that are appropriate for members of a culture. My family experiences relate to me by learning the proper way to behave, morals to believe, and knowing what to value in life. Between the views and attitudes of my parents, they both believed that women deserve equal rights with men and stood up for equality. There wasn’t any conflicting ideas within my family about the nature and “proper” role of women. There are generational attitudes in the way my parents grew up verses myself. For an example, my parents grew up in a society of where girls are expected to learn how to clean and cook in the country, while boys were expected to run the farm and do agriculture.
The Signal Cable Company is a cable manufacturer for analog and digital interconnects, speaker, video and home theater cables. It is located in Tarrytown, New York. The company is well known for “highest standard in quality and customer service” and their “superior design” and “No-Hype approach resulted in one of the best price/performance ratio in the industry”.
By 2002 the state run vertically integrated utility was trifurcated into Generation Company, Transmission Company and Distribution Company. The distribution company was further trifurcated and three joint venture distribution companies came into existence in 2002 vide the PPP (Public Private Partnership) model. One of the Distribution Companies is Tata Power Delhi Distribution Ltd. (then NDPL) is a joint venture of Delhi Government and Tata Power. The company was faced with huge challenges ranging from operational efficiency to commercial