A Financial Affairs Evaluating Study On Digital Intelligent Binding Line Project By JMD Machinery Co. Ltd.

Along with our country economy, especially the rapid development of culturalindustry, print of books and periodicals is to enter development" gold period". Thedeveloped countries in Europe and America publications printing industry alreadyentered the era of intelligent, and our publications printing enterprises mostly at halfmechanization, manual, efficiency is low, benefit is poor. An imported digitalintelligent binding line in the state tax-free conditions, still need about ten millionyuan. With the exception of a few large domestic enterprises and joint ventures withthe ability to purchase, most of the enterprises to bear. Therefore, JMD company haspromoted national industry strategic meaning of advanced manufacturing industry-digital intelligent binding line project investment, in order to meet the domesticpublications printing enterprises on the digital and intelligent binding line demandsituation, gradually enter the international market, participate in internationalcompetition. Project financial evaluation is the core part of project feasibility study,and according to the current tax system and price system, analysis, calculation ofproject direct financial efficiency and cost, the preparation of financial statements, theevaluation index, according to the project profitability, solvency and the foreignexchange balance financial situation, determine the financial feasibility of the project,the appraisal conclusion is the important and decision-making basis that decides theproject choice.In this paper, the project financial evaluation under the guidance of the theory, firstbriefly introduced the background of this investment project, analysis of the projectproduct market demand, forecast future products sales, determine project designproduction capacity, and accordingly put forward the project of the main technical andeconomic index; secondly using the estimated data, select the relevant indicators,analysis of corporate profits capacity and solvency, through to the project’s financialbreak-even analysis and sensitivity analysis, the financial evaluation of the project are:the static and dynamic financial indicators of good, strong profitability; project debtrepayment period is short; the financial ratios are in the normal range, and gettingbetter and better year after year.Because the project sales price, sales volume and cost of operation and other key moreuncertain factors, sales revenue and cost uncertainty, it is an emphasis in this paper isin the financial evaluation based on the data, the chart with the way of the project, make deep analysis of uncertainty. Includes the single factors, two factors, three factorsensitivity analysis and the risk analysis, to seek comprehensive quantitative analysisof uncertainty factors on the impact of the project, and determine the possibility ofprofit. Uncertainty analysis of the conclusion is: the project to uncertain factorschange bear ability, investment recovery period is short, little risk.Finally, from the financial evaluation, uncertainty analysis, project management andother point of view and puts forward some constructive suggestions.