Bombay dyeing

o# I&I(TA Per#ormance Technologies% N.(.A. #or P(6 manu#acture with PTA #eedstoc" in the year /883 and the technology is now een #ully asored y the company. The CI6 value o# these is aout 8.35 crores in /8+++/. As regards the imports o# raw material and other material% the CI6 value #or the year /8+++/ is 52+.22 crores #or raw materials and +*.3/ crores #or stores% spare parts and catalysts.

)

PROJECT REPORT Financial Statement Analysis ,ha!ter $/ Analysis o+ Position statement an# ncome Statement 3.1 Ratio Analysis 1) 0I=NI
0i;uidity ratios measure the short term solvency% i.e. the rm>s aility to pay its current dues 1.

CNRRET RATIO

2.

=NIC RATIO 4a

Current Ratio

 The current ratio o# the company has an increasing trend. It has increases #rom 8.9*,+ to +.3+,+ in the last #our years. This company is moving towards the ideal ratio o# /,+. This shows that the company will e ale to meet its current liailities on time and has ade;uate wor"ing capital.

=uic" Ratio

=uic" ratio has a decreasing trend. It has decreased #rom /./9,+ in 4ar /887 to 8.79 in 4ar /8+/. It has moved towards the ideal ratio o# +,+

10

PROJECT REPORT Financial Statement Analysis 3.

 The s 6unds.

I&ETORB KO0
Inventory Turnover Ratio Inventory Kolding Period FdaysG

Inventory holding period has increased #rom 2+ days in 4ar /887 to /*8 days in 4ar /8+/. This indicates that the company is holding more inventory compared to previous years. 2) (O0&ECB RATIO(

(olvency ratios depict the capital structure o# the company. It shows the dierent sources o# nance that the company has employed. 1.



11

PROJECT REPORT Financial Statement Analysis 2.


3.


ITERE(T CO&ER

Interest Cover

 The det ratio shows the ratio o# total loans to total assets. The ratio increased in the year /887+8 and declined therea#ter due to low dependence on loans and more reliance on internal sources o# nance.

Interest Coverage Ratio determines the ease with which a company can pay interest e!pense on outstanding det.  The company has a low interest coverage ratio o# +.*-. This indicates that the company is having di$culties in generating the cash necessary to pay its interest oligations

+88

58 38 *8 /8

12

8 4ar  87

4ar  +8

4ar  87 4ar 8.+7

PROJECT REPORT Financial Statement Analysis margin is a measurement o# what proportion o# a companys revenue is le#t over a#ter paying #or variale costs o# production such as wages% raw materials% etc. A healthy operating margin is re;uired #or a company to e ale to pay #or its !ed costs% such as interest on det. Kere the increasing rm>s margin depicts the higher earnings per rupees o# sales.  Thus company>s per#ormance has een improving over the years.

3) PRO6ITA1I0ITB RATIO( Prot 1. Operating 4argin

Operating Prot 4argin

 This ratio is used to measure a companys pricing strategy and operating e$ciency. Operating

1$

PROJECT REPORT Financial Statement Analysis is used to assess a rms nancial health y revealing the proportion o# money le#t over #rom revenues a#ter accounting #or the cost o# goods sold. +5 +3 +* +/ +8

5 3 * / 8

 The rm has higher prot margin thus wor"s e$ciently over the years.  The highest was during 6B +8 in which the cost o# goods sold was least during the /887/8+8. Also the net prot was negative during year /885/887.

Gross 4ar  87

+* +/

2.

+8

'ross Prot 4argin

5 3 * /

'ross Prot

8 4ar  87 4ar  +8 4ar 

'ross prot margin serves as the source #or paying additional e!penses and #uture savings. It

1

PROJECT REPORT Financial Statement Analysis 3.

Return on Assets

Return on Assets

Retur -88 *-8 *88 2-8 288 /-8

An indicator o# how protale a company is relative to its total /88 assets. ROA gives an idea as to +-8 how e$cient management is at +88 using its assets to generate -8 earnings. The assets o# the 8 company are comprised o# oth 4ar  87 det and e;uity. 1oth o# these types o# nancing are used to #und the operations o# the 4) 6IACIA0 RATIO(, company. The ROA gure gives 1.
4ar  +8

4ar 

4ar  8

PROJECT REPORT Financial Statement Analysis

/ + 8

4ar  87

4ar  +8

4ar  ++

4ar  +/

1(

PROJECT REPORT Financial Statement Analysis the liailities side o# the alance sheet shows that the company has 2./ Trend Analysis reduced its dependence on e!ternal sources o# nance and increased the om*a use o# internal sources o# nance y
*+.2

7ess/ Accum +89.8
Share A!!lication 8.8 +88.8 3et loc&  4oney Pre+erence Share 8.8 +88.8 ,a!ital >or& in ,a!ital Progress Reser"es +9-+.+ +2**.* n"estments Re"aluation Reser"es 8.8 n"entories +97/.* *52.7 3et worth Secure# 7oans 938.9 Sun#ry
--.7 5+3.3 /387.8

,ash an# an& alance 'otal ,urrent +/-.* Assets 7oans an# A#"ances

 The loan #unds have reduced Fi.e#
2*/.*

+7+.3

7/7.*

7*.9

579.2

7+.-

+8/.8

*3.3

/8-.3

72.7

-3.8

7/.7

+%-*7.9

/7/.5 +32.5

38./ +88.8

*89.- +%82+.9 /9+.2

+29.3

22.7

/82.-

-8.+

22.2

22*.7

-.8

*7.7

+%9/8.3

/+3.+ +%/*8./ +--.5

958.2

282./

8.8

8.8

/53./ +++./ +3.+

+*.+

PROJECT REPORT Financial Statement Analysis 'otal ,A? 7oans @ /%-8+.8 A#"ances
/+*.2 +%-*/.* +2/.+ +%87+.3

72.- +%+39./ +88.8

+88.8 /5+.7

8.8 +88.8 2+3.7*./

8.8 +88.8 287.7 7/./

8.8 +88.8 22-.7 +88.8

2/.2

/5+.*

/2.- /8*.5

+9.8 +*5.2

++.- +88.8

797.*

/5+.7

+%-/+.3 8.8

2*8.8

79.7

2/3.7

7*.+

2*9.* +88.8

+5-.3 +%/8/.* +*3.9

93*.9

72.2

5+7.5 +88.8

8.8

8.8

+.* +88.8

8.8

/%387.8

8.8

8.8

+/-.* /%23-.- ++2.9 +%75-.-

7-.* /%85+.2 +88.8

 The inventory level has increased y 289.-M #rom /88587 to /8+++/. Also there is a signicant change in the cash position o# the rm which shows an increase y //*. 7M. E!cept #or these changes the stru cture o# the company has remained more or less the same.

om*ay
4ar +/

4ar ++

4ar +8

4ar 87

3,O4-S Sales 'urno"er -.cise
/%2*5.8 3 +/2.++

/%8+7.* +37.+/ 8 +*-.*-+%989.5* +/2.8++%255.23

+88

/99.-/

+88

+8/.5- /2+.5-

*3.*3 +8*.92

**.23

/%//*.7 +%7+3.- +3-.-- +*/.38+%33+.25 +/2.3++%2**.88 -8.59 2*/.97 23.+/ /*2.*8 /./ +*.5/ +*.5* +//99.* -+5.++ 7 *9.*7 ++/-.23 /.-/ -7.9/ *.// /%972.7 /%888.+ 2 /87.-* 3 +-8.8++%33+.83 +/*.-5+%222.25

+88 +88 +88 +88

-8P-3<'URRaw 4aterials

+%*/+.5 5

Power @ Fuel ,ost -m!loyee ,ost

+82.72 52.*5

++8.*+3/.*5

5-.35 7+.838.8/ ++3.5/

9**.**

*+9.95

/2/.9/ +28.38

Other 4anu+acturing -.!enses Selling an#

8

+%+37.* +9*.25 7 +*2.*/

8 +*8.+2 +2/.7*

5//.22 +88.5-

5+-.*+

+88

55.89 73.99

7*.+ -+.25

+88 +88

/9-./ +-*.**

+95.+7

+88

+8-.+

+8-.*+

+88

5/.59 *7.9/

77.9+

A#min -.! 4iscellaneous -.!enses 'otal -.!enses O!erating Pro;t P<' nterest P<' ritten O 

1:

+/8.*/ /%*9*.+ /35.7+ 2+7.95

/75.-7

*5.7 +%923.7 +7/.-9 * */*.+//9.+ 3-5.-2 /32.//

+/+./-

*8.22

+88

+2-.+7+%295.*3 +89./7+%/5*.5/ 2-5./8 /58.* **/./9 32.* -*/.8/5/.3 -5+.73 *5.-3

+88 +88 +88

+58.-9 79.32 +9*.89 7*.+/ +27./+ +8/.89 57.+- 3-.23 3+.27 8

++8.+3 8

3/.85 +++.27 8 8

*2./* +89.//

/88.9 +85.-/ +5*.75+.7 38.8- +23.27

+88 +88

-7.-* +83.5* 8 8

+88 +88

--.92 8

PROJECT REPORT Financial Statement Analysis Pro;t e+ore 'a. -.traBor#inary items P' CPost -.traB or# temsD 'a. Re!orte# 3et Pro;t 'otal 9alue A##ition Pre+erence
99.5/

*8.-+

/9.89

+*.87

/.79

/.79

8./5

8./5

9*.5-

25.73

/9.2-

+*./*

+-.- +-+7.3+

-./3 -+-.37 /+.27

+8.77

//.23 ++.3* +7/.+/ 8

8.88

+88

8

+88

//.23 ++.3* +7/.+/

+88

2.99 237.3+ +5.*/

+.8/

+88

7.*3 +7*.3/

+88

-7.2-

28.-8

+%8-/./9

//*.+9

-39.*- +/8.57

--3.+2 ++5.*9

*37.*+

+88

8 /8.33

8 -2-./2

8 8 +*.+7 239.3/

8 8 7.33 /-8./3

8 2.53

+88 +88

2.23

-87.87

/.2 2*5.*5

+.3 /*/.*/

8.33

+88 +88

*+2.89

+83.79

*8-.*9 +8-.88

+*.29

/5.-+

-./5 +8.*5

-8 *22.7/

-88 77/./9

22-8 97.-3 +5+.72

253.+9 +88.88

253.+9

+88

7.*3

-8.*

+88

//-8 -*.*9 +/*.-3

+8 *2.92

+88 +88

*.99

 The trend analysis o# income side o# the income statement shows that the sales turnover o# the company has increased y 37M #rom /88587 to /8+++/.this is a good sign #or the shareholders. Income #rom other sources #or the company has declined y /*/M% thus the company is #ocusing on its main sources o# revenue  The trend analysis o# e!penditure side o# income statement shows that there has een an increase o# 2+9M in other manu#acturing e!penses over the period.  The operating prot o# the company has increased sustantially y 2/*M and thus company has een paying higher dividends over the years.

1)

PROJECT REPORT Financial Statement Analysis Financial Ratios

#i"i#en# !er share o!erating !ro;t !er share net o!erating !ro;t !er share earning !er share !ro;ta*ility ratios o!erating !ro;t margin !ro;t *e+ore interest an# ta. gross !ro;t margin cash !ro;t margin return on ca!ital em!loye# return on net worth return on assets return on long term +un#s

Grasi m <,4 Shriram

om*ay
-

,entur y

//.-

8.*

-.-

3-.+ +23.39

+9.-5

*2./5

-25.3* -25.59 +*.29 +/5.2*

/79.7/ -/8.+3 8.53

/.25

+/.85

/-.23

-.7

5.2/

7.+ 7.2/

/+.+3 //.**

/.93 /.95

/.79 /.75

-.-5

/+.72

2.23

3.82

+8.8*

+*.*5

-.53

2.+5

2.2+ +/.72 *22.7/ 77/.+7

+.++.53 9*.92 /8*.85

++./9

+*.-9

5./3

*.2+

li=ui#ity ratios current ratio

+.3+

+.+7

8.53

8.-*

=uic& ratio

8.79

8.5+

8.5+

8.*7

8.*3

8.89

+.2

+.5

8.2

8.83

8.3*

+.89

+.*-

29.73

+.83

+./-

8.*3

8.89

+.2

+.5

+.97

*+.5*

/.8*

2.+3

+.-/ +2.8-

5.55 ++.+/

2.77.23

3./9 +-.87

sol"ency ratios #e*t e=uity ratio long term #e*t e=uity ratio interest co"erage ratio total #e*t to owners +un#s ;nancial charges co"erage ratios management eciency ratios in"entory turno"er ratio #e*tors turno"er ratio

in"estments turno"er ratio ;.e# assets turon"er ratio total assets turno"er ratio

20

+.-/

5.55

2.7-

3./9

+.93

+.-7

+.35

8.9/

8.5-

8.-+

+.9*

8.7+

PROJECT REPORT Financial Statement Analysis 2.2 Peer Comparison  The peer comparison shows that the company is well aligned with its peer group o# companies in terms o# structure o# the company. The company>s li;uidity position is meeting the industry norms and displays a good li;uidity position. The protaility margins are also neither too high nor too low comparison to its peers. It earns a medium range o# prot margins. The solvency position o# the company is also conrming to the industry norms. The management e$ciency ratios also reveal that the e$ciency o# management is satis#actory as #ar as its level o# competition in the industry is concerned. Kowever% it needs to #asten its inventory turnover ratio which is ;uite low as compared to it peers. This has also een oserved as a wea" area #or the company as the (:OT analysis revealed that the company is yet to improve its (upply chain management.

21

PROJECT REPORT Financial Statement Analysis 1

,ha!ter / ,ash Flow Analysis 2011B12

Operating activities

Cash used in nancing activities has also shown a decline o# 5/M BOB. The co has sourced cash #rom orrowings% !ed deposits and demand loans L cash credit.

2010B11

Operating activities Cash #rom 1 operations show that 1•  There is a 32-.33M increase there has een 5+.-M in cash ?ow #rom operations. decline as compared to  This can e attriuted mainly the previous year. This to a decrease in the levels o#  can e mainly inventory and less cash een attriuted to cash stuc" stuc" in trade and other in Trade receivales and receivales. loans and advances and other assets. Investing activities Investing activities

1• Cash used in investing activities has reduced y 32.*/ M BOB. This is mainly due to in?ows resulting #rom net intercorporate deposits and sale o# shares in susidiaryHjoint venture.

Cash used in 1 investing activities has shown 55.9M decline on  BOB comparison. This shows that relatively #ewer amounts have een 6inancing activities spent in ac;uiring !ed assets or ma"ing 1•  There has een an increase investments. There has o# /7/.2M in cash used in een a decrease in the nancing activities on amount o# !ed deposits account o# #ewer amounts o#  placed with the an"s. proceeds #rom orrowings Also% it is seen 2 and !ed deposits. that the company has earned a marginal prot on its investments in oth the years. :e can say that the company might e involved in short term investment activities.

6inancing activities

22

PROJECT REPORT Financial Statement Analysis Operating activities 200)B10

Operating activities 1•  There is a BOB 98+.3M increase in cash ?ows #rom operations majorly on account o# revenue received #rom sales.

Investing activities

1•  There is a decline in cash ?ows #rom operations y 52.85M BOB mainly due to low sales during the year.

Investing activities 1• Cash used in investing activities has declined y 77M BOB on account o# less purchase o#  investments and !ed assets.

1•  There is a decline in cash used in investing 6inancing activities activities y *2*.22M  BOB. This can e 1• Cash ?ows #rom nancing attriuted to no activities has decreased y investments een made 98.35M BOB due to and negligile sale o# comparatively less investments as orrowings een made and compared to the higher interest e!penses previous year. incurred. 6inancing activities 1•  There has een a 2*/.2M BOB decline in ?ows #rom nancing activities leading to a cash out?ow #rom nancing activities mainly due to large scale repayment o# orrowings and demand loans and cash credit. 200:B0)

2$

PROJECT REPORT Financial Statement Analysis Particulars

4ar 12 4ar 11

3et Pro;t e+ore 'a. 3et ,ash From O!erating Acti"ities 3et ,ash Cuse# inDH+rom n"esting Acti"ities 3et ,ash Cuse# inDH+rom Financing Acti"ities 3et C#ecreaseDHincrease n ,ash an# ,ash -=ui"alents O!ening ,ash @ ,ash -=ui"alents ,losing ,ash @ ,ash -=ui"alents

4ar 10 4ar 0)

4ar 0:

9*.5-

/3.29

//.+7

+72.3

+5.8+

+8+.97

--+.79

9-.82

7.23

--.2-

2.--

2+.-+

+/.*-

/.22

/-+.72

+82.95

-79.29

+-/./9

3/.5/

/+*./5

+.-3

+2.57

57.37

37.5-

+9.9

*.+/

+5.53

+/2.-5

-2.92

23.82

-.35

*.79

22.57

+/2.-5

-2.92

 The Cash 6lows #rom Operating Activities have increased sustantially in /8+8++ and the Cash used in nancing activities has also increased sustantially while the investing activities show a steady trend. Kere% we analy@e that the company has earned a lot o# revenue in the year /8+8++ and thus repaid its loans to get rid o# interest e!penses and started relying more on internal sources o# nance.

388 *-8 288 +-8 8 /88587 E+-8 E288 E*-8

/887+8

/8+8++

/8+++/

operating activities investing activities

nancing activities

E388 E9-8

2

PROJECT REPORT Financial Statement Analysis ,ha!ter 5/ S>O' Analysis 5.1 Te!tiles

288 e!clusive 6ranchise (tores 288 0arge 6ormat store Counters /888 4ulti 1rand stores

1omay dyeing is a The (:OT analysis #or the te!tile mar"et leader in thesector reveals that the company is te!tile sector with morea well "nown rand in the te!tile than +888 designindustry which #orms the strength launches every year ando# the company and the there is a a wide range o# ;ualities right #uture #or the company in in ath linen andterms o# growth. It only needs to its supply chain enhanced #ocus on value improve addition and innovation. management system.  T h e c o m p a n y h a s 7 #  l a g s h i p s t o r e s

(TRE'TK(

:EAE(( eeds to improve (upply Chain 4anagement to

:idest range o# designs

:idest range o# price points #rom  -*7 +8888 to cater to customer in reduce cycle time every segment strengthen ;uality o# product 0ong term reduce conversion sustainale costs (:OT AA0B(I( model

Fte!tilesG  TKREAT

OPPNRTNITB Can e suject to

1anglad

in?ationary pressures 'rowth o# esh organised sector in 0evy o# e!cise duty can :ithin impact demand te!tile% #uture Cheap imports #rom Increased L duty #ree disposale income China imports #rom

o# the middle class

#or over 78M.

Nnorgani sed sector accounts

25

PROJECT REPORT Financial Statement Analysis  The plant maintains high sa#ety standards and is uilt to e!emplary -./ Polyester staple 6ire environment and energy conservation standards.  The P(6 plant operates '((( Fe!t generation tipple The (:OT analysis reveals that the (pinning (ystemsG systemscompany is one o# the most sought since /889% implemented ya#ter rands #or polyster. It is one o# Invista Polyester Technologiesthe three manu#acturers o# polyester and Chemta! International Inc% er staple which is its greatest N(Atechnical e!pertisestrength. Also% the Ps# is cheaper as suppliers. This was the rst o# compared to cotton% thus enecial its "ind polymer to P(6 #or its growth. Kowever% the technology used anywhere incompany needs to e!pand its presence in mar"ets to reap the the world. potentials.

:EAE(( only in ig (TRE Presence cities 'TK ot doing enough to ( uild rand

Implementatio n o# rst o# its "ind polymer to P(6 technology used anywhere in the world. Kigh energy conservat ion technolog ies

e;uity

 T A0B(I( lyrG s OPPNRT F A t NITB Po  e TKREAT

( : O 0ow price as compared to cotton and other sustitute res. Continuou s rising demand #or te!tile products% demand #or P(6

will increase in long run

0 o w c o t t o n p r i c

ede oil sprice s% the aco. nCan d#ace sever he i cost gpress hures

cott on can aec t dem and adve rsely . 'ov t cImproved poli r availailli cy uty o# in

e!p ort o# raw cott on coul d ae ct the co.> s ope rati ons

2(

PROJECT REPORT Financial Statement Analysis -.2 Realty 1omay realty see"s to create mi!ed use developments that oer you the aility to 0I&E.:OR.P0AB.Q all at one place.  They are developing properties which are gated communities% having private roads% advanced security and world class in#rastructure. It is 1uilt on the strong #undamentals o# trust and ;uality% #ullling the aspirations #or an evolved li#estyle. 1omay realty has announced two mi!ed use projects% which are presently under development. 1it these the Island City Centre FICCG and  The :adia international centre F:ICG are proposed to e uilt in line with our philosophy o#  0I&E.:OR.P0AB.  The (:OT analysis o# the sector reveals that the scarcity o# land in the City and increasing congestion on road as well as pressure on in#rastructure will lead to higher demand #or residential accommodation especially in Central 4umai which is e;uidistant #rom the commercial hus o# (outh 4umai and 1andraurla Comple! in orth 4umai.  Thus there is a huge potential% however it does #ace some environmental and political threats in terms o# strictness o#  authorities and increasing rate o# interest in the Economy.

(TRE'TK( :EAE((

Integrated mi!ed use developments within 4umai gives a competitive edge Aggressive investment in 1rand uilding and consumer centric approach as direntiation strategy

( :

residential property prices has remained stagnant druing past months

signicant rise in interest rate on home loans Commercial space demand#or oth sale and leas remain wea"

O  T

(carcity o# will lead to0arg e no land in city% higher o# demand #or increasing new residential on road congestion accomodation proj ects and in in#rastructu vicin re ity inade;uacy lead

NRTNITB AA0 FRealtyG  B(I( OPP  TKREAT ing ntrov to ersies inte involv nse ing com uilde peti rs tion made autho c rities o eco

m e

r e

e v e n

s t r i c t

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26

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