BUSINESS FINANCE – II
Kindly study the Annual Report, 2016 of SUZLON ENERGY LIMITED. On the basis of the standalone financials (that’s, standalone balance sheet, standalone Profit and Loss Account and standalone cash flow statement), the group is required to answer the following:
Is this Company - SUZLON ENERGY LIMITED a healthy company?
Comment of the Capital Structure of the Company?
Assume that the Company approached you for borrowing more money. Will you like to extend loans to such company? Support your answer with suitable reasoning.
As on August 18, 2017, the Company’s share price was Rs. 16.95. Use relative valuation approach (using P/E Ratio, Market to Book Value Ratio etc.), suggest whether the share of the company is over-prices, under-priced or properly-priced.
Highlight at least two important reasons for the present state of the company.
Suggest some measures to turnaround the company so that finally, it becomes a healthy.