The Research For Finance Evaluation Of Kunda Cast’s Project Relocation And Expanding

Underground water pipeline and gas pipeline is one of the important raw materials in the national economy. They has been named industry blood vessel. Centrifugal ductile iron pipe is one of the technical more difficulties but the most economic. Dalian Kunda Cast Iron Pipe Co., Ltd. is the earliest ductile iron pipe factory who introduced German advanced technology, plans to build a precise pipe project by relocation and investment, according to the demand of domestic and foreign market and its own limitations.For successful investment, it is a very important theoretical significance to carry out financial analysis and decision making during the factory construction. This paper takes the new project of Kunda Pipe as study case to confirm if Kunda Pipe can get its expected economic effectiveness by analyzing the future financial status and appraisal value. Base on that production scale of the enterprise planning to quantitative analysis for known conditions, using the theory and method of the theoretical research, document indexing and positive analysis to build basic framework of financial data after capital arrangement, this paper calculates all the financial indicators and make out financial appraisal and conclusion.This paper includes four sections except foreword. This first section briefly introduce the background and existing conditions of Kunda Pipe’s project, which contributes to easy understanding of discussion for next financial overview. The second section is to confirm evidence of financial analysis, according to the current national financial system and price system, from existing conditions and set conditions to estimate or calculate the basic data of investment, cost, income, various taxes and profits etc. of this project. The third section will make a forecast for financial statement based on the datum from second section. According to the balance sheet, profit statement and statement of cash flow to calculate evaluating indicators and analysis financial profit and loss for project researching, such as liquidity, profitability and main economic indicators etc. Due to profitability and risk are the two basic essential features of investment, so it is thoroughly considered in the forth section for the uncertain factors. Comprehensive analysis, then reasonable avoid risks, make a conclusion of financial appraisal at last.