COMP.

CHANAKYA BUSINESS SIMULATION

IMPORTANT POINTS TO BE FOLLOWED DURING THE SIMULATIONS

What will you get to prepare?

1. You are given pre-read material known as Sector Analysis Report along with Financial and Market
Data. These reports are known as “Management Report” (MR) and “Sector Update” (SU). These
reports will be prepared and given by AIMA faculty on completion of Each Round. Hence, you are
not required to prepare any of these.
2. All these Reports will be explained in the Briefing Session through a Power Point presentation by
AIMA faculty. However, you must read the entire pre-read thoroughly.
3. There are Starting Conditions given after SU. All these conditions are to be followed throughout the
simulation. Please go through the same. These will also be explained in the Presentation by AIMA
Faculty.
4. Your Team will be given a unique Login id and Password to download and upload activities which
will be explained by AIMA Faculty.
5. The file to be downloaded and uploaded will comprise a unique FILE NAME given by AIMA. This
file Name should never be changed while downloading; saving on your laptop and uploading on our
server otherwise you will not be able to upload your answers.
6. Both reports i.e. Management Report (MR) as well as Sector Update (SU) will be given to each
Team in the form of Result.
.

What is expected from you?

1. Each Team must have at least One laptp preloaded with either Chrome or Mozilla browser.
If your Team does not have Laptop with above browser, you will not be able to participate. It is
must. It is always better to have a stand by laptop so that in case of failure, you are able to use the
other one.
2. All the answers will be filled by you in a Standard Decision Form that will be in Excel format.
3. You will be allowed to download this FORM and that will have the unique file name which should
not be changed at all.
4. Your first action should be the downloading Decision Form and read the same thoroughly to know
what types of answers are to be written there in.
5. There will be a fixed time limit for each round. The clock that will show you the remaining time left
will appear on your Dash Board. You are required to keep watching the time left. You have to
submit your Decision Form as your Answers within the time limit. If the time is over, the previous
Quarter Decisions are taken automatically.
6. No request for extension of time will be entertained.
7. Please do not forget to save your excel sheet i.e. Decision Form before uploading the same.
8. While filling the form, please read the instructions given on the form very carefully.
9. Don’t use commas and full stops while writing figures in the Form.
10. You may also found drag down indicators in few columns to choose the option rather than filling the
column.
11. All columns are not necessarily to be filled. Wherever, you do not want to fill the column, please
leave it blank.

Page 1
 COMP.

SECTOR ANALYSIS REPORT

Dear Participants
Your Team is representing a Company and you are required to manage a Computer manufacturing
Industry. We will evaluate your performance at the end of Quarters based on Cumulative (Cum) Profit
After Tax (PAT). Your PAT in each Quarter would be added and adjusted for any Shark Loan interest to
obtain the winning Criteria.

PRODUCTS: Your Company will manufacture the following four types of Computers :
(1) Personal Computer (PC) High Brand : Your Company has decided to manufacture only High
Brand PCs and Laptops. Other applications like tablets etc. may come after one year.
(2) Standard Printers (SP): The high quality and high speed printers along with image facility will be
produced. Basic use is in the Corporate and Service Sector.
(3) Small Servers (SS) : These are utility servers caters to the need of Local Connectivity in small
and medium offices, showrooms, workshops, small retail shops, apparels show rooms, mega
medical stores, etc. The manufacturing cost due to heavy consumption of Raw material is very
high as compared to other products
(4) IT Peripherals (ITP) : These are the items such as Wireless optical mouse, web ‘cams’, smart
monitors, keyboard etc.

MANUFACTURING: Your Company has Plant and Machine capacity of 10,000 units of production of all
the four products. You are doing only in‐house production starting with PCs.

RAW MATERIAL: All the four PRODUCTS will be manufactured using TWO types of Raw Materials
(RMs):
(a) PCBA : Printed Circuit Board Assemblies and Both RMs are necessary to manufacture all the
(b) BMDC : Boxbuilds, Monitor, Drives and Chassis four products. Shortage will affect the production.

OPERATING SYSTEM : These computers are bundled with Proprietary Software (PS) having Microsoft
Windowsᵀᴹ platform. The other platform is Google Apps® known as Open Standard (OS). There are
emerging issues on the software side as OS platform becomes more popular and can lower cost of
manufacturing. However, the market is still predominantly with the PS.

WAREHOUSING COST ON CLOSING INVENTORY : The closing inventory of Finish Goods (FG) i.e. PC, SP,
SS and ITP i.e. unsold FGs units at the end of the quarter will charged with warehousing cost.

DEMAND : Through a market survey, the tentative demand of all the products is given in the
Management Report. This demand is only estimated and not a definite demand. The demand is for 10
Teams hence, average demand is about 10% per Team. Your Team has to decide production of the
product based on average demand.

SELLING PRICE BAND : You are allowed to sale your Products within the following Price Bands:

(i) PC : Cu 400 – Cu 650 per unit; (ii) SP : Cu 300 – Cu 550 per unit;
(iii) SS : Cu 1500 – Cu 1850 per unit (iv) ITP : Cu 100 – Cu 350 per unit

While writing selling price within the above band,

Page 2please do not use decimal (.) It is not acceptable.
 MANAGEMENT AIMA

CHANAKYA Cash Statement

THE BUSINESS DECISION GAME
Ltd. REPORT DESCRIPTION CU

A0
Operation Cash Inflows
Income Statement 4,200,000
Sales Revenue Collection
Results of Quarter Current Quarter 4,200,000
Previous Quarter 0
DESCRIPTION CU

0 Operation Cash Outflows

Raw Materials
2,380,000
3,465,000

INCOME Current Quarter

Previous Quarter 0
Balance Sheet Net Sales Revenue 4,200,000 Manpower & SW
Other Income 100,000 Current Quarter 175,000
DESCRIPTION CU Previous Quarter 0
Total Income 4,300,000
Warehousing Charges 0
Share Holders' Funds EXPENSES Production Overheads 300,000
Equity Share Capital (FV=10) 10,000,000 FG Op Inv 0
Selling, Dist and Admin costs 610,000
Res & Surplus or Ret Earnings 444,500 2,380,000
Raw Materials Consumed 0
(Eq share prem: 0.00 ) Information Package
+Manpower & SW cost 175,000 0
Preference Share capital Product Design & Certification
( ) 0 =Total Direct Costs 2,555,000 Interest Flows -100,000
(Pr. share prem: 0.00 ) +Warehousing Charges 0 Net Interest Paid
0
Loan Funds +Production Overheads 300,000 Interest on Bank OD
0 Interest on Term loans 0
Two Year Term Loan =Cost of Production (CoP) 2,855,000
0 Interest on Bonds 0
Three Year Term Loan Goods Available for Sale (Op+CoP) 2,855,000
Bonds 0 Shark Loan Interest 0
Less FG Closing Inventory 0
Total Sources 10,444,500 2,855,000 Income from Investments (+) 100,000
=Cost of Goods Sold
Fixed Assets Gross Profits 1,445,000 Corporate Tax 190,500
2,000,000 610,000 Ext item,inv writeoff, disband(+/-) 0
Assembly Plant (incl Plant under inst) Selling, Dist & Admin Expenses
less Accumulated Depreciation 100,000 Bad Debts 0 Net Operational Flows 644,500
Machinery (incl Mach under instal) 2,000,000 Cash Discount+Bill Disc Chges 0 Appropriations
less Accumulated Depreciation 100,000 0 Preference Dividend 0
Information Package
Total Fixed Assets 3,800,000 0 Equity Dividend 0
Research & Develpment
835,000 Capital Inflows
Investments & Vendor Deposits 5,000,000 EBITDA
Depreciation & GW amortization Overdraft and Loans Taken 0
1,644,500 200,000
Current Assets Capital Raised
EBIT 635,000 0
RM+FG Inv 0 Pref Shares Issued
Bank Overdraft Interest 0
Accounts Receivables 0 Equity Shares Issued 0
Shark Loan Interest 0
Cash on Hand 1,644,500 Capital Outflows
2/3 year Term Loan Interest 0 5,000,000
Less Current Liabilities Investments
0 Bond Interest 0
Accounts Payables Principal Repayments 0
0 Misc Exp, Royalty, TM etc 0 0
Maturing Term Loans LC Amount Repayed
0 Total Financial Expenses 0
0 Cap Expenditure
Bonds maturing 0 Corporate Tax 190,500 Net Capital Flows -5,000,000
Bank Overdraft 0 Ext item,Inv write off, disband 0
Shark Loans 0 Profit After Tax (PAT) 444,500 Misc Exp, Royalty, TM etc 0
Appropriations
Total Net Current Assets 1,644,500
Dividend on Preference Shares 0 Opening Balance Cash 6,000,000
Total Application of Funds 10,444,500 Dividend on Equity Shares 0 0
Shark Loans Raised
Net Income to Retained Earnings 444,500 Closing Balance 1,644,500

SUMMARY OF OUTSTANDING TERM LOANS & BONDS (PLR + %) Inventory Data (ID)
# AMOUNT INTRATE DURATION ENDS IN AMOUNT DUE EQI Finished Goods PC SP SS ITP

Order Enq Recd Dom(units) 7,000

Opening Inventory (units)
Actual Production (units) 7,000

Total Sales (Dom +X/tender) 7,000

FG Closing Inventory (units)
Material Consumed / unit
PCBA 3.00
BMDC 2.00
Material Consumed (units)
PCBA 21,000
BMDC 14,000
Report on the Market submitted by : Your Corporate Planning Dept
Manpower & SW Cost/Unit 25.00 25.00 25.00 25.00
Forecast of General Economic Environment Your Direct Cost pu 365.00
Avg Ind Selling Price CU 600.00
Qrtr-> 0 1 Your Market Share (%)(units) 10.00
2 3 4
Index (Base )
Raw Material Numbers Value Cu.
GDP 102 104 105 106 109 PCBA BMDC PCBA BMDC
STK IDX 12900 13000 13500 13650 13750 Opening Inventory
CPI 100 101 104 105 106 Fresh Purchases 21,000 14,000 1,680,000 700,000
IIP 100 102 104 106 108 Consumption 21,000 14,000 1,680,000 700,000
Closing Inventory
CIBOR/PLR (%pa) 10.0 10.0 10.0 10.0 10.0
Proc Price pu 80.00 50.00
Actual Or Forecasted Demand for the Domestic Sector; Export, Tenders etc is extra and as given in Gz, emails
(in Units

Qrtr-> 0 1 2 3 4
Product Messages
PC 0 64,500 65,000 65,900 66,300
SP 0 0 26,353 26,353 26,584
SS 0 0 19,500 21,200 21,900
ITP 0 0 0 8,956 10,166

Page 3
 0
Sector
Update Issued at the end of Quarter No: Team No:
A 0 AIMA

Company Name Team 00 Team 01 Team 02 Team 03 Team 04 Team 05 Team 06 Team 07 Team 08 Team 09
Plant Capacity (for next qtr) 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000
Machine Capacity (for next qtr) 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000
Plant Capacity thru Productivity Gains
Machine Capacity thru Productivity Gains
Equity Share Price on Stk Exc 9.79 9.79 9.79 9.79 9.79 9.79 9.79 9.79 9.79 9.79

4.445 4.445 4.445 4.445 4.445 4.445 4.445 4.445 4.445 4.445
Winning Criterion (CUMPAT(00
000)
)

Key Performance Data (Information Package # 6 - Price Cu.50,000)

Average Manpower & SW Cost 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00
Net Income Margin 0.1034 0.1034 0.1034 0.1034 0.1034 0.1034 0.1034 0.1034 0.1034 0.1034
Debt to Equity Ratio
Current Ratio *****.** *****.** *****.** *****.** *****.** *****.** *****.** *****.** *****.** *****.**
Earnings Per Share 0.4445 0.4445 0.4445 0.4445 0.4445 0.4445 0.4445 0.4445 0.4445 0.4445
Return on Equity 0.0426 0.0426 0.0426 0.0426 0.0426 0.0426 0.0426 0.0426 0.0426 0.0426
Return on Investment 0.0426 0.0426 0.0426 0.0426 0.0426 0.0426 0.0426 0.0426 0.0426 0.0426
Collection in Curr Qtr/Sales 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00

Efficiency and Activity Ratios ((Information Package # 7 - Price Cu.40,000)

Prod Dev /Sales
S & D & Info Pack Cost/Sales 0.14 0.14 0.14 0.14 0.14 0.14 0.14 0.14 0.14 0.14
Material Cost/Sales 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.56
Financial Cost/Sales
Days Sales Outstanding
FG Inventory Holding Days
Sales/Total Assets 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40

Market Share Data (Information Package # 8 - Price Cu.125,000)

PC Mkt Share % units 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10
Avg Price / Unit 600 600 600 600 600 600 600 600 600 600
Sale/Ord Enq 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00

SP Mkt Share % units

Avg Price / Unit
Sale/Ord Enq

SS
Avg Price / Unit
Sale/Ord Enq 0.00

ITP
Avg Price / Unit
Sale/Ord Enq

Market Share (Rs Sales) 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10

Contract Sales (no charge)

Price Quotation
PC
Qty Awarded
Price Quotation
SP Qty Awarded
Price Quotation
SS
Qty Awarded
Price Quotation
ITP Qty Awarded

Industry Wide Inventory Levels (Information Package # 9

PC - Price Cu.25,000)

SP
SS PCBA
ITP BMDC

Asset List (no Charge)

Plant # 1
Capacity (units) 10000
Remaining Life (qtrs) 19

Machine # 1
Capacity (units) 10000
Remaining Life (qtrs) 19

Page 4
Abridged Balance Sheet and Income Statement at the end of Quarter 0 Group A 6
(Information Package # 10 Price Cu.125,000) TEAM 0 TEAM 0 TEAM 0 TEAM 0 TEAM 0 TEAM 0 TEAM 0
TEAM 0 TEAM 0 TEAM 0
Balance Sheet All Figures are in Cu 000)
Equity Share Capital 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Preference Share Cap
Reserves and Surplus 445 445 445 445 445 445 445 445 445 445
Total Long Term Liab
Total Sources 10,445 10,445 10,445 10,445 10,445 10,445 10,445 10,445 10,445 10,445
Total Fixed Assets 3,800 3,800 3,800 3,800 3,800 3,800 3,800 3,800 3,800 3,800
Total Investments 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000
Receivables
RM+FG Inventory
Cash In Hand 1,645 1,645 1,645 1,645 1,645 1,645 1,645 1,645 1,645 1,645
Account Payables
Bank Overdraft
Maturing Term Loans
Maturing Bonds
Shark Loans
Net Current Assets 1,645 1,645 1,645 1,645 1,645 1,645 1,645 1,645 1,645 1,645
Total Application 10,445 10,445 10,445 10,445 10,445 10,445 10,445 10,445 10,445 10,445

Income Statement All Figures are in Cu 000)

Sales 4,200 4,200 4,200 4,200 4,200 4,200 4,200 4,200 4,200 4,200
Other Income 100 100 100 100 100 100 100 100 100 100
Opening Inventory
Production Cost 2,855 2,855 2,855 2,855 2,855 2,855 2,855 2,855 2,855 2,855
Goods Available for 2,855 2,855 2,855 2,855 2,855 2,855 2,855 2,855 2,855 2,855
FG Closing Inventory
Gross Profit 1,445 1,445 1,445 1,445 1,445 1,445 1,445 1,445 1,445 1,445
Bad Debts
S & D Expenses 610 610 610 610 610 610 610 610 610 610
R & D Expenses
MR Expenses
Total Financial Expe
Income Tax 191 191 191 191 191 191 191 191 191 191
Equity Dividend
Preference Dividend
Transfer to R & S 445 445 445 445 445 445 445 445 445 445

Page 5

02/22/17
 STARTING CONDITIONS COMPUTER MANUFACTURING INDUSTRY

Types of Raw Materials

(1) RAW MATERIAL
PCBA BMDC
PC 3 2
SP 2 3
Products
SS 10 12
ITP 1 1
Per Unit Rate Rate (in Cu.) 80.00 50.00
Payment Term Current Qtr 100% for both Raw Materials

(2) WAREHOUSING (Charges on Closing Inventory of Finished Goods and Raw Material)
PC 20.00
Finished Good (Cost per unit in Cu) SP & ITP 10.00
SS 30.00
Payment Term Current Qtr 100%

(3) DIRECT LABOUR COST

Finished Goods (Cost per unit in Cu) 25.00
Payment Term Current Qtr 100%
(4) PRODUCTION OVERHEAD (Per Qtr) on Plant & Machine Capacity
Capacity of Plant & Machine Cu.
Slab 1 0 15000 300,000
Slab 2 15001 30000 400,000
Payment Term Current Qtr 100%
(5) PLANT & MACHINERY - Lead Time 1 Qtr
Current Quarterly Capacity 10,000 Units
Plant & Machine Details Life in Qtr 20
Per Unit Cost in Cu. 400.00
Depreciation Method SLM
Other Details applicable on P & M
Capacity Utilization 100%
Payment Term on enhancement of P&M Current Qtr 100%
(6) MARKETING PLAN (Per Qtr) i.e. Selling & Distribution Expenses
Fixed Cost on Branding, Distribution and Marketing in Cu 400,000
Variable Cost on Dealer Commission, Incentive as % on Sales Revenue 5%
Payment Term Current Qtr 100%
(7) FINANCIAL PLANNING
Minimum Cash balance At the end of Quarter in Cu 500,000
Maximum Loan limit in Cu 2500000
Term Loan : 3 years Annual Rate of Interest Aprox 15%
Investment or Term Deposit Annual Rate of Interest 8%
Shark Loan interest per annum 40%
Face Value of Share Cu 10
Corporate Tax Rate 30%

Page 6
CHANAKYA Group TRIAL

Business Decision Game Select Team No. Quarter No. 1

COMP-COMPUTER INDUSTRY
Decisions Name of Finished Products
PC
Total Production (Units)
Selling Price Per Unit (Cu.) v
Procure PC from CM (Max = 1000 units @cu.500; 100% payment)

Fresh Purchase of PCBA in Units Investment if Bk FD@8% pa (Cu)

Fresh Purchase of BMDC in Units Disinvest from Bk FD (cu)

CEO's Signature____________

Page 7