PNG as a Source of Energy: Cost Benefit Analysis for Sukriti Vidyut Udyog Private Limited




Case Details Case Introduction 1 Case Introduction 2 Case Excerpts

Abstract

This case focuses on the issues arising from the power problems faced by the manufacturing industries in the Ghaziabad area. Sukriti produced continuous length wires as per the market demand. For producing continuous length wires, the company used imported and indigenous machines. These machines derived power from a combination of power supplied by the UPSEB and a diesel generator.

However, switching of machines from UPSEB power to the generator took 2-3 minutes. To bridge this gap, the company installed a UPS to ensure the continuous supply of power and thereby production of a continuous length of wire. IGL proposed to lay the PNG gas lines in the industrial area.

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Issues

The case is structured to achieve the following teaching objectives:

  • External and Internal Factors in which the business operates.
  • Financial evaluation  of  alternative sources of energy supplies
  • Role of depreciation in reducing cost.
  • Applicability of  corporate tax rates under the Income Tax Act 1961
  • Written Down Value Method of calculating depreciation.

Contents
Introduction
Company Background
Company Profile
Critical Issue
Proposal
Financial Information For 2010-11
Exhibit

Keywords

Financial management; Cost benefit analysis; financial evaluation; corporate tax; Depreciation; Written Down Value Method; Environmental analysis

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