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Chandoo 10mar17

The YTD February 2017 performance of the DIVISION business was lower than budgeted in top line but higher than budgeted in gross margin and net profit. Specifically, turnover was lower than budget by 40 million but gross margin and net profit were higher than budget by 20 million and 40 million respectively. Working capital is also higher than targeted by 20 million. Receivables over 30 days have improved but aged inventory has deteriorated by 20 million mainly due to certain reasons. The quarterly forecast expects turnover to increase each quarter from 100 to 400 million but gross margin and net profit to remain steady at 50% and 20% respectively.

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Nanda Kumar
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52 views2 pages

Chandoo 10mar17

The YTD February 2017 performance of the DIVISION business was lower than budgeted in top line but higher than budgeted in gross margin and net profit. Specifically, turnover was lower than budget by 40 million but gross margin and net profit were higher than budget by 20 million and 40 million respectively. Working capital is also higher than targeted by 20 million. Receivables over 30 days have improved but aged inventory has deteriorated by 20 million mainly due to certain reasons. The quarterly forecast expects turnover to increase each quarter from 100 to 400 million but gross margin and net profit to remain steady at 50% and 20% respectively.

Uploaded by

Nanda Kumar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as XLSX, PDF, TXT or read online on Scribd
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Division

Memo
To : xxx
CC : yyy
From : zzz
Date : 6-Mar-17
Re : YTD Feb-17 DIVISION

Dear Mr.xxx,

The top line for YTD Feb-17 is Lower than budget by xxx Million. The gross margin achieved for YTD Feb-17 is Higher
than budget by xxx Million, GM% earned is Higher than budget by xxx%. Net Profit achieved is Higher than budget by
xxx Million

Following is the YTD Feb-17 detailed performance review for DIVISION business Vs Budget:
(AED : in 000s)

Feb-17 YTD Budget Variance YTD


Particulars Feb-17 YTD Feb-17 YTD Feb-16
BUDGET 2017 2017

Turnover 100 120 200 240 (40) 80


Gross Margin 50 60 100 120 (20) 40
Net Profit / (Loss) 20 40 40 80 (40) 20
Gross Margin % 50% 50% 50% 50% 0.00% 50%
Net Profit / (Loss) % 20% 33% 20% 33% -13.33% 25%

Deviation in Turnover:

Deviation in Margin:

Summary of Quarterly performance is as below:

(AED : in 000s)
Q1 Forecast Q2 Forecast Q3 Forecast Q4 Forecast 2017 Forecast 2017 Budget
Particulars
Turnover 100 200 300 400 1,000 1,200
Gross Margin 50 100 150 200 500 600
Net Profit / (Loss) 20 40 60 80 200 240
Gross Margin % 50% 50% 50% 50% 50% 50%
Net Profit / (Loss) % 20% 20% 20% 20% 20% 20%
Working Capital
Working Capital is higher by xxx Million (Actual xxx Million Vs Target xxx Million)

Receivable –

The 30 days overdue balance has improved by xx Million

6 months old overdue balance is as follows :

Inventory

Aged inventory position has been detoriated by xxx mainly due to following reason:

Sincerely,
zzz

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