Chef's Hat: Client Brief

Client Brief

Company Name

Chef’s Hat Ltd 

Company Summary

Chef’s Hat is a meal delivery service which provides high-quality meal kits to families.  

Chef’s Hat’s vision is better living through better food. Launched in 2012, Chef’s Hat offers fresh, chef-designed recipes with responsibly sourced ingredients. Through its delicious receipts, the company strives to bring restaurant-quality food to the home dinner table. Chef Hat is a carbon-neutral meal-kit company and is focused on promoting dietary wellness to everyone.  

The Board of Directors has asked you to do a complete financial analysis of the company, complete a cash budget, review the strategic plan of the company, make recommendations on this strategy, and provide a statement on the solvency or insolvency of the company as it relates to the Indian Insolvency and Bankruptcy Code 2016. 

The Board of Directors is especially interested in the viability of its strategic planning which will require significant debt financing to fund its implementation, which primarily involves expanding into India. 

Information Provided 

You have been provided with the company’s Prospectus document (in the next segment) which the board plans to use to secure the funding for the strategic plan. The Prospectus document provides all the information necessary to complete your findings and recommendations. 

Requirements 

Chef’s Hat needs you to provide them with a thorough report on findings and recommendations for the following areas:

1. Write an executive summary that summarises your findings.

2. Provide a complete financial analysis of the company, including Viability, Liquidity, Working Capital Management and Solvency. 

3. Create a monthly cash budget for the 1st quarter of 2023.

4. Review the current strategic plan for Chef’s Hat. Determine the likely success of this plan and provide recommendations, based on the financial analysis, of how this plan can be improved. 

5. Provide a statement on the solvency or insolvency of the company as it relates to the Indian Insolvency and Bankruptcy Code 2016. Are the board of directors meeting their obligations by running a solvent organization?  

Chef’s Hat Expectations

• A thorough and in-depth financial analysis provides very meaningful information about the financial position and performance of the company.

Note: The liquidity, working capital management and solvency analysis should be based on the 2022 and earlier financial information within the prospectus.

For the viability analysis, the company is interested in a break-even review for 2023 only taking into account the increased debt of $57 million with an interest rate of 4%. A review of the profitability should be conducted for earlier periods. The information for the viability analysis is provided under section 7.4 Break-Even analysis in the prospectus. 

• An accurate cash budget. The information necessary to complete the cash budget is provided under section 7.3 Information for Cash Budget in the prospectus. 

• A detailed account of the likely success of the current strategic planning is based on the exact numbers from the financial analysis and cash budget. This should include recommendations on how the company might structure its strategic planning to achieve success based on the details from the financial analysis. Make sure to consider the financial consequences to the viability, liquidity and solvency of the company if they executed their strategic plan as stated. 

 • The Board of Directors requires a review of their solvency position as it relates to Indian Insolvency laws. Are the company directors in compliance with their directors’ duties in India? Please provide appropriate references to the law to justify your findings.