KML - Have you covered everything? Please Ensure (small Mind Map)

Hi,

Please ensure whether you have covered all the aspects that mention in the mind map.

You may raise any questions.

Aruna

sir can u plz tel how we are doing a due diligence???

It normal process like we are doing an audit jeevantha. But in an audit our scope is bit limited to provide a true and fair view on historical financials.
But DD, your scope will be much high
- accuracy of what recorded in given financials (inventroy can use? slow moving debtor base? impairment?, etc, etc)
- Operational aspects (staff levels, operational aspects, etc etc)
- Contractual aspects (customer agreements, other incorporation documents, etc)

Etc, etc.
just read below

http://www.bdo.com.au/resources/articles/advisory/mergers-and-acquisitions-financial-due-diligence


& also I shared a sample due diligence report conducted for manufacturing company and also a check list. you should at least go through those roughly. below is the link.

https://topcawitharuna.iftopic.com/f14-financial-management-aspects-spl-kml

You should further remember that scop of DD is flexible and often decides by the buyer (might be SPL)

Aruna

Dear Sir,

Thank you for the mind map......it covers everything it seems
Trying to find to find what imposed the Stated capital increment since the family had probs and is less likely to reinvest.

Even the idea of pvt placement is questionable no since they had continuous losses

what do u think Sir?

Sir kml is using furnace oil in its manufacturing. How is this affecting them?
http://www.ft.lk/2015/02/16/industries-renew-call-for-lower-furnace-oil-prices/

Hi Sahan,

This is just a request. Am i correct?

So, unless the government agrees this is not affected to industries. At this moment and near future no government will accept this request in my opinion and it is very remote.

If accepted then positive factor. Even recent reduction one of the key consideration.

BTW, CASL seminar is over????

Is it correct to say recent reduction has no major impact on kml since it uses furnace oil mainly?
N seminar is still going on

No No what I said it is a positive factor, if they accept definitely. Even recent price reduction is a positive factor.

Got it, thank you sir.

Sir for financing acquisition Of kml as well as another project say proposed shopping mall,if existing cash is insufficient in unseen, what is the most suitable option? should spl use debt ( given their existing gearing level is quite low) or should they go for an IPO? generally how long will it take to prepare for an IPO?

Hi, for a properly plan IPO it requires at least a year. So, if it is urgent then bank loan would be better. But if Sandra wants to exit or any other IPO favourable hints there then you may go with IPO.


So, based on timing you can reply. And also mention preset interest rate upward moment trend also.