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RULES
You all will be allocated an Industry randomly. So, basically you will be a company in that
industry. Each industry has two raw materials that are essential for it to start production. See
Table below. You need at least 1 unit of each Raw material for starting production.
Once you complete your production you can sell to these two industries. See table below.
Further, you will need Capital to meet your financial needs. You all have a capital of 1
Crore. But, this capital will come as a loan to you. You need to pay interest on this loan.
Interest rate shall be determined by a test of your accounting skills. Find a file named Round
1 in the zip folder. It is an excel workbook containing 3 sheets each for Profit & Loss A/c,
Balance Sheet and Cash Flow Statement. In total, there are 10 mistakes. You have to identify
these mistakes (highlight them) and give correct treatment as well. Some points to keep in
mind.
Simultaneously, your team needs to develop a logo and a tagline for your company that needs
to be submitted at the end of this round. (1 slide PPT)
Summary: At the end of this round, you know your industry, trading relationships, capital
and interest rates. Deliverables at the end: Logo + Tagline (1 slide PPT)
Buy the Production House. Since, all of you now have your capital. Now, invest it to build
your production facilities. You have a combination of machines to choose from. Each
machine has its own specifications. Choose wisely.
Land price is Rs. 20,000 /sq ft
Machinery Specifications:
Machinery Available Area Efficiency Cost Depreciation (SLM) Repair maintenance
no. (sq ft) (units per order) (in Rs) CLB IT (in Rs. per order)
A 5 30 140 1500000 10% 10% 10000
B 8 40 100 1200000 10% 6.67% 12000
C 5 60 180 2000000 12% 10% 6000
D 3 20 160 2100000 7% 10% 15000
E 4 50 200 2500000 10% 12% 8000
Total 25
Further, there are three types of labour required with different wage rates. And each
machinery requires a different combination of these labours to produce one unit of output.
See table below.
Please note, you have to simultaneously maintain excel sheets, Profit and loss and Balance
sheet (refer file final accounts in Zip folder) during every round. Moreover you need to
upload it as google sheets at the end of each round. (Or give it to us in pen drive). So record
all cash, machinery etc. in your balance sheet at Year 0.
Besides, you have to make an ad campaign for your company and prepare a 3 slide
PPT.
Summary: At the end of this round, you have built your production facilities and
advertisement campaign. Deliverables at the end: Ad Campaign (3 slide PPT)
To start with, you already have the raw materials in the following manner: ( to be bought
from Finesse team) at a cost of Rs. 50 p.u.
Production Mix
Input Qty
Raw Material 1 1
Raw Material 2 1 2
Output 2.5
Say for example if you are in electronics industry, you need 1 unit of chemical and 1 unit of
silicon to produce 2.5 units of final product.
Youll have 4 trading cycles of 20 minutes each. Each trading cycle is considered as one year.
Production and trading will work simultaneously. You have to put in a production request
with the production house (finesse team) for the no. of units you want to produce along with
the details of the raw material procured. Each production order would need 3 minutes of
processing time.
Unprocessed raw material left at the end of each cycle will be shown in the balance sheet as
closing stock at cost. Any unsold finished goods will be taken at production cost.
At the end of this round you need to submit your excel sheets for evaluation. A ranking
would be done on the basis of the evaluation of the logo, tagline, advertisement and profits
made. Teams with low ranks will thus be eliminated.
Summary: At the end of this round, you have operated for 4 years. Deliverables at the end:
All excel sheets.
1 hour break
The teams that have qualified for the round 4 have an option to acquire the eliminated teams.
The financial statements will be shared with them and they can use valuation models to value
these firms and decide whether or not and which company they want to acquire.
Judgement Criteria
Logo and tagline (content and creativity) 50 marks
Advertisement 50 marks
Profit 100 marks
Mergers and acquisition 50 marks
Profit 100 marks