Financial Analysis Assignment Shree

8/2/2019 Financial Analysis Assignment Shree

1/21

Balance Sheet ------------------- in Rs. Cr. -------------------

Mar '10 Mar '11 Comparative Cross Sectional

12 mths 12 mths

Sources Of Funds

Total Share Capital 34.84 34.84 1.00000 0

Equity Share Capital 34.84 34.84 1.00000 0

Share Application Money 0 0 #DIV/0! #DIV/0!

Preference Share Capital 0 0 #DIV/0! #DIV/0!Reserves 1,798.40 1,951.34 1.08504 0.08504

Revaluation Reserves 0 0 #DIV/0! #DIV/0!

Networth 1,833.24 1,986.18 1.08343 0.08343

Secured Loans 1,788.53 1,780.49 0.99550 -0.00450

Unsecured Loans 218.71 227.41 1.03978 0.03978

Total Debt 2,007.24 2,007.90 1.00033 0.00033

Total Liabilities 3,939.47 3,994.08 1.01386 0.01386

Mar '10 Mar '11

12 mths 12 mths

Application Of Funds

Gross Block 2,950.86 4,042.07 1.36979 0.36979Less: Accum. Depreciation 2,198.91 2,875.01 1.30747 0.30747

Net Block 751.95 1,167.06 1.55204 0.55204

Capital Work in Progress 967.42 1,027.83 1.06244 0.06244

Investments 1,592.24 1,196.46 0.75143 -0.24857

Inventories 358.13 404.23 1.12872 0.12872

Sundry Debtors 82.42 108.21 1.31291 0.31291

Cash and Bank Balance 416.37 460.81 1.10672 0.10672

Total Current Assets 492.33 973.25 1.97682 0.97682

Loans and Advances 780.18 537.86 0.68941 -0.31059

Fixed Deposits 364.59 0 0.00000 -1.00000

Total CA, Loans & Advances 1,637.10 1,511.11 0.92304 -0.07696

Deffered Credit 0 0 #DIV/0! #DIV/0!

Current Liabilities 608.36 626.42 1.02969 0.02969

Provisions 499.87 281.97 0.56409 -0.43591

Total CL & Provisions 1,108.23 908.39 0.81968 -0.18032

Net Current Assets 528.87 602.72 1.13964 0.13964

Miscellaneous Expenses 0 0 #DIV/0! #DIV/0!

Total Assets 3,939.47 3,994.07 1.01386 0.01386

Contingent Liabilities 693.13 198.18 0.28592 -0.71408

Book Value (Rs) 526.23 570.13 1.08342 0.08342


2/21

5708.56

5,927.27


3/21

Profit & Loss account ------------------- in Rs. Cr. -------------------

Mar '10 Mar '11 Comparative

12 mths 12 mths

Income

Sales Turnover 4,014.09 3,937.79 0.98099

Excise Duty 385.89 424.71 1.10060

Net Sales 3,628.20 3,513.08 0.96827Other Income 61.72 -1.7 -0.02754

Stock Adjustments 23.58 34.81 1.47625

Total Income 3,713.50 3,546.19 0.95495

Expenditure

Raw Materials 646.64 650.91 1.00660

Power & Fuel Cost 610.48 912.32 1.49443

Employee Cost 159.21 198.54 1.24703

Other Manufacturing Expenses 41.79 233.41 5.58531

Selling and Admin Expenses 664.34 676.68 1.01857

Miscellaneous Expenses 25.27 667.08 26.39810

Preoperative Exp Capitalised 0 0 #DIV/0!Total Expenses 2,147.73 2,662.26 1.23957

Mar '10 Mar '11

12 mths 12 mths

Operating Profit 1,504.05 885.63 0.58883

PBDIT 1,565.77 883.93 0.56453

Interest 129.09 97.83 0.75784

PBDT 1,436.68 786.1 0.54716

Depreciation 570.43 675.76 1.18465

Other Written Off 0 0 #DIV/0!

Profit Before Tax 866.25 110.34 0.12738

Extra-ordinary items 16.69 58.74 3.51947

PBT (Post Extra-ord Items) 882.94 169.08 0.19150

Tax 206.84 -40.61 -0.19634

Reported Net Profit 676.1 209.7 0.31016

Total Value Addition 1,501.08 2,011.35 1.33994

Preference Dividend 0 0 #DIV/0!

Equity Dividend 45.29 48.77 1.07684

Corporate Dividend Tax 7.59 7.99 1.05270

Per share data (annualised) #DIV/0!

Shares in issue (lakhs) 348.37 348.37 1.00000

Earning Per Share (Rs) 194.07 60.19 0.31015

Equity Dividend (%) 130 140 1.07692

Book Value (Rs) 526.23 570.13 1.08342


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Cross Sectional

-0.01901

0.10060

-0.03173-1.02754

0.47625

-0.04505

0.00660

0.49443

0.24703

4.58531

0.01857

25.39810

#DIV/0!0.23957 Gross profit margin = Formula = Gross profit/net sales. Gross profit =

production before selling, general, administrative expenses and inter

= Gross sales (-) Excise duty.

-0.41117

-0.43547

-0.24216

-0.45284

0.18465

#DIV/0!

-0.87262

2.51947

-0.80850

-1.19634

-0.68984

0.33994

#DIV/0!

0.07684

0.05270

#DIV/0!

0.00000

-0.68985

0.07692

0.08342


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et sales (-) Cost of

st charges. Net sales


6/21

Cash Flow ------------------- in Rs. Cr. -------------------

Mar '10 Mar '11

Net Profit Before Tax 867.91 158.82

Net Cash From Operating Activities 1253.98 1074.43

Net Cash (used in)/from

Investing Activities -1688.45 -636.07

Net Cash (used in)/from Financing Activities 378.58 -393.93

Net (decrease)/increase InCash and Cash Equivalents -55.89 44.43

Opening Cash & Cash Equivalents 472.26 416.37

Closing Cash & Cash Equivalents 416.37 460.81


7/21

Exhibit 1a

Activity Analysis Numerator Denominator Numerator

Inventory turnover COGS Avg Inventory 3,513.08

No. of Days 365 days Inventory Turnover 365

Accounts Receivables Turnover Total Revenue Avg Receivables 3,546.19

No. of Days 365 A/R Turnover 365

Fixed Assets Turnover Total Revenue Avg Fixed Assets 3,546.19

Total Assets Turnover Total revenue Avg Total Assets 3,546.19

Average Inventory 358.13 404.23 762.36

Cash 460.81

A/R 108.21 82.42 Average AR

Inventories 404.23 973.25

Total Current Assets 973.25

Average Total Assets 3917.275 3,840.48

Fixed assets


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Denominator Ratio

381.18 9.21633

9.21633 39.60362

95.315 37.20495

32.77137 11.13777

2194.88 1.61566

3917.275 0.90527

381.18 Ratio

9.21633

39.60362

95.315 32.77137

11.13777

1.61566

0.90527

3,994.07

219488.84


9/21

Exhibit 1b

Liquidity Analysis Numerator

Average no. of days inventory in stock We have already done in Exhibit 1

(Plus)Days of receivables outstanding We have already done in Exhibit 1

Length of operating cycle

(minus) Payables outstanding 365

Length of cash cycle

Current Ratio Current AssetsQuick Ratio cash+MS+A/R

Cash Ratio cash+MS

Cash from operations ratio CFO

Defensic interval no. of days 365

*Payables Turnover=Purchases/Avg Accounts Payables

Purchases= Cost of sales+Closing Stock-Opening stock

Purchses 436505

Avg Accounts Payables 91045.5

Payables Turnover 4.794361061

Payables Outstanding 76.13110388

**Projected Expenditure=cost of sales+selling,general and admin-depre and amortization

Proejcted Expenditure 669772

Cash+MS+A/R 740624Projected Ex/C+MS+AR 0.904334723


10/21

Denominator Numerator Denominator Ratio

40 40

12 12

52 52

Accounts Payables Turnover* 365 24 15

37

Current Liabilities 995.70 626.418 1.58952Current Liabilities 591.47 626.418 0.94421

Current Liabilities 483.2632 626.418 0.77147

Current Liabilities 1074.4317 626.418 1.71520

Projected Exp**/(Cash+MS+AR) 365 5.727 63.73765

Purchases 3,547.8894

Net Sales 3,513.08

Closing Stock - Opening Stock 34.809Average Accounts Payable 146.882

Current Liabilities 626.42

Current Assets 995.70

Inventories 404.23

Accounts Payable Turnover 24.15

591.47

Accounts Receivable 108.21

Cash+MS 483.26

CFO 1,074.43

Depreciation 9.4474

Depreciation and amortization 359.3586

General expenses 233.41

Admin and Selling Expenses 0

Cash+MS+AR 591.47

Projected Expenditure 3,387.13

Projected Expenditure/(Cash+MS+AR) 5.72660


11/21

Exhibit 1b

Solvency Analysis Numerator Denominator Ratio

Debt to Equity ST+LT Equity 1.01094

Debt to Capital ST+LT *Capital 0.50272

Debt (including trade) to Equity ST+LT+A/P Equity 1.07251

Debt (including trade) to Capital ST+LT+A/P **Capital 0.51749

Times interest earned EBIT Interest 2.12787Capital expenditure ratio CFO Only net Capex

CFO to Debt CFO ST+LT 0.53510

ST+LT 21338

ST+LT+A/P (including tax payable) 151467

Equity 907373

*Capital=Equity+LT+ST+Bank Loan

Capital 928711

**Capital=Equity+LT+ST+Bank Loan+A/P+Income Taxes Payable

Capital 1058840

Net Capex= Investment in PPE-sale of PPE

Net Capex 27847


12/21

Total Debt 2,007.90

Equity share capital 34.84

reserves 1,951.34

Equity capital 1986.18

Accounts Payable 122.30

ST+LT+A/P 2,130.20

EBIT 208.17

Interest 97.83

3,994.08

CFO 1074.432 1074.43

4,116.38


13/21

Exhibit 1d

Profitability Analysis Numerator

Gross Margin GP

Operating Margin Operating Income

Pretax Margin Pre interest and pretax income

Profit Margin Net Income

ROE after tax Net IncomeROTC (preinterest)after tax NI+Interest(1-t)

ROTC (preinterest) pre tax EBIT

Tax rate 43%

Profit Before Tax

Net Sales

Total Income

Net Income

PBDIT

Average Equity

Average Total Capital

Interest(1-t)

NI + Interest(1-t)

Depreciation

Pre interest and pretax income

Operating Profit


14/21

Denominator

Total Revenue 5.97%

Total Revenue 24.97%

Total Revenue 24.93%

Total Revenue 5.91%

Average Equity 10.98%Avg Total Capital (Debt+Equity) 6.78%

Avg Total Capital (Debt+Equity) 6.80%

110.34

3,513.08

3,546.19

209.7

883.93 Depreciation 675.76

1909.71

3917.28

55.7631

265.4631

266.38

675.76

208.17

885.63


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Operating Profit Margin(%) 25.2

Profit Before Interest And Tax Margin(%) 5.89

Gross Profit Margin(%) 5.97

Cash Profit Margin(%) 24.58

Adjusted Cash Margin(%) 24.58

Net Profit Margin(%) 5.89Adjusted Net Profit Margin(%) 5.89

Return On Capital Employed(%) 6.42

Return On Net Worth(%) 10.55

Adjusted Return on Net Worth(%) 10.04

Return on Assets Excluding Revaluations 570.13

Return on Assets Including Revaluations 570.13

Return on Long Term Funds(%) 6.42


16/21

Exhibit 4:

ROE Disaggregation: 3 and 5 Component Dupont Models

Total Components

3 5

1 Tax Burden(Net Income/EBT) 1.90

2 X Financing (EBT/EBIT) 0.12

3 X Operations (EBIT/Sales) 25.161 Net Income/Sales 5.97

2 4 X Asset Turnover 0.91

3 5 X Leverage (Avg Assets/Avg Equity) 2.05

.=Return on Equity 11.08

Profit Before Tax 110.34

Net Sales 3,513.08

Total Income 3,546.19

Net Income 209.7

PBDIT 883.93

Average Equity 1909.71

Average Total Capital 3917.28

Interest(1-t) 55.7631

NI + Interest(1-t) 265.4631

266.38

Depreciation 675.76

Pre interest and pretax income 883.93

Operating Profit 885.63

Average Assets 3917.275

Average Equity 1909.71


17/21

Key Financial Ratios of Shree Cements

------------------- in Rs. Cr. -------------------

Mar '11 Mar '10 Mar '09 Mar '08

Investment Valuation Ratios

Face Value 10 10 10 10

Dividend Per Share 14 13 10 8

Operating Profit Per Share (Rs) 254.22 431.74 273.76 248.4

Net Operating Profit Per Share (Rs) 1,008.43 1,041.47 779.76 605.16Free Reserves Per Share (Rs) -- 460.05 302.68 147.89

Bonus in Equity Capital -- -- -- --

Profitability Ratios

Operating Profit Margin(%) 25.2 41.45 35.1 41.04

Profit Before Interest And Tax Margin(%) 5.89 25.3 26.93 17.76

Gross Profit Margin(%) 5.97 25.73 27.54 18.33

Cash Profit Margin(%) 24.58 33.32 28.56 36.23

Adjusted Cash Margin(%) 24.58 33.32 28.56 36.23

Net Profit Margin(%) 5.89 18.32 20.8 11.96

Adjusted Net Profit Margin(%) 5.89 18.32 20.8 11.96

Return On Capital Employed(%) 6.42 25.91 30.64 23.37Return On Net Worth(%) 10.55 36.88 47.76 38.69

Adjusted Return on Net Worth(%) 10.04 35.96 48.61 46.03

Return on Assets Excluding Revaluations 570.13 526.23 347.33 193.13

Return on Assets Including Revaluations 570.13 526.23 347.33 193.13

Return on Long Term Funds(%) 6.42 27.13 32.66 23.78

Liquidity And Solvency Ratios

Current Ratio 1.66 1.13 1.34 1.84

Quick Ratio 1.14 1.1 1.71 1.7

Debt Equity Ratio 1.01 1.09 1.19 1.89

Long Term Debt Equity Ratio 1.01 1 1.05 1.84

Debt Coverage Ratios

Interest Cover 2.62 8.4 10.89 9.13

Total Debt to Owners Fund 1.01 1.09 1.19 1.89

Financial Charges Coverage Ratio 9.53 12.13 13.16 17.93

Financial Charges Coverage Ratio Post Tax 10.05 10.66 11.15 15.21

Management Efficiency Ratios

Inventory Turnover Ratio 9.74 17.5 63.7 28.34

Debtors Turnover Ratio 36.86 51.56 50.44 55.73

Investments Turnover Ratio 9.74 17.5 63.7 28.34

Fixed Assets Turnover Ratio 0.87 1.23 1.21 0.96

Total Assets Turnover Ratio 0.88 0.95 1.03 1.09

Asset Turnover Ratio 0.87 1.23 1.21 0.96

Average Raw Material Holding -- 58.13 8.84 10.54

Average Finished Goods Held -- 4.93 3.7 4.45

Number of Days In Working Capital 61.76 52.48 91.94 98.02

Profit & Loss Account Ratios

Material Cost Composition 18.52 17.82 18.49 17.85

Imported Composition of Raw Materials Consumed 2.67 0.9 -- --

Selling Distribution Cost Composition -- 17.35 16.9 17.06

Expenses as Composition of Total Sales 0.89 0.31 0.68 0.81


18/21

Cash Flow Indicator Ratios

Dividend Payout Ratio Net Profit 27.06 7.82 7.05 12.52

Dividend Payout Ratio Cash Profit 6.41 4.24 5.2 4.41

Earning Retention Ratio 71.54 91.98 93.08 89.48

Cash Earning Retention Ratio 93.52 95.71 94.87 95.87

AdjustedCash Flow Times 2.29 1.63 1.81 1.61

Mar '11 Mar '10 Mar '09 Mar '08

Earnings Per Share 60.19 194.07 165.91 74.74Book Value 570.13 526.23 347.33 193.13


19/21

Mar '07

10

6

170.49

402.7482.08

--

42.33

11.29

42.45

42.84

41.46

12.43

11.04

13.6238.94

34.61

130.48

144.61

13.62

2.3

1.82

1.94

1.94

17.53

1.94

51.07

51.67

9.12

63.01

15.74

1.85

1.05

0.85

29.69

4.01

113.27

18.42

--

15.98

--


20/21

13.46

3.9

84.86

95.97

1.49

Mar '07

50.81130.48


21/21

INCOME

Sales 14 3,93,778.94 4,01,408.60

Less: Excise Duty 42,591.69 38,196.30

Net Sales 3,51,187.25 3,63,212.30

Other Income 15 4,677.07 7,583.79

3,55,864.32 3,70,796.09

EXPENDITUREManufacturing Expenses 16 1,73,412.70 1,31,234.03

(Increase) / Decrease in Stock 17 (3,359.83) (1,965.58)

Purchase of Finished Goods 6,251.28 918.42

Payment to and Provision for Employees 18 19,853.79 15,861.19

Administrative Expenses 19 6,268.26 4,949.31

Freight & Selling Expenses 20 61,405.91 62,983.14

Interest and Financial Expenses (Net) 21 9,782.62 7,658.07

2,73,614.73 2,21,638.58

Captive consumption of Cement [Net of Excise Duty Rs. 197.92 Lac (1,208.59) (1,019.61)

(Previous year Rs. 165.43 Lac)]

2,72,406.14 2,20,618.97

PROFIT BEFORE DEPRECIATION, EXCEPTIONAL ITEMS & TAX 83,458.18 1,50,177.12

Depreciation & Amortisation 67,575.94 57,042.98

Exceptional Items

Provision for Statutory Liabilities of Earlier Years - 4,367.62

Assets Constructed at Others' Premises W / off 4,847.41 1,975.23

PROFIT BEFORE TAX 11,034.83 86,791.29

Provision for Current Tax 2,171.00 20,885.00

MAT Credit Entitlement (213.00) -

Provision for Deferred Tax (5,985.34) (201.40)

Prior Period Tax Expense (Net) (5,874.40) (1,476.00)Fringe Benefit Tax of Earlier Years Written Back (33.48) (26.34)

PROFIT AFTER TAX 20,970.05 67,610.03

Balance Brought Forward from Previous Year 1,13,615.46 80,793.18

PROFIT AVAILABLE FOR APPROPRIATION 1,34,585.51 1,48,403.21

Transferred to Debenture Redemption Reserve 12,500.00 7,500.00

Transferred to General Reserve 2,500.00 22,000.00

Interim Dividend on Equity Shares 2,090.23 1,741.86

Corporate Dividend Tax on Interim Dividend 347.16 296.03

Proposed Final Dividend on Equity Shares 2,786.98 2,786.98

Corporate Dividend Tax on Final Dividend 452.12 462.88

20,676.49 34,787.75

Balance Carried Over to Balance Sheet 1,13,909.02 1,13,615.46

1,34,585.51 1,48,403.21

Financial Analysis Assignment Shree

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