Trend Analysis of the Balance Shee1

8/3/2019 Trend Analysis of the Balance Shee1

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BHARAT SANCHAR NIGAM Ltd

Sri kalahastiswara institute of information and management sciences

TREND ANALYSIS OF THE BALANCE SHEET

FOR THE YEARS 2008 to 2010

Particulars 2008 2009 2010 2008(%) 2009(%) 2010(%)

Current assets:

Inventory 271,428,799 309,192,143 630,516,341 100 113.9128 232.2953

Debtors 18,113,070 16,504,157 19,477,152 100 91.11739 107.5309

Deposits 7,787,309 9,927,806 11,240,757 100 127.487 144.3471

Cash&bankbalances

129,569,540 166,447,388 236,089,263 100 128.4618 182.2105

Loans&advances 72,333,257 95,244,304 325,165,903 100 131.6743 449.5386

Sub total (A) 499,231,975 597,315,798 1,222,489,416 100 119.6469 244.874

Fixed assets:

Fixed assets 326,693,339 439,017,856 642,857,962 100 134.3822 196.7772

Capital work inprogress

15,147,071 62,161,069 149,922,643 100 410.3834 989.7798

Sub total (B) 341,840,410 501,178,925 792,780,605 100 146.612 231.9154

Investment (C) 3,364,853 3,838,099 3,838,099 100 114.0644 114.0644

Misc.expenses (D) 20,376 16,302 12,226 100 80.00589 60.00196

TOTAL

(A+B+C+D)

844,457,614 1,102,349,124 2,019,120,346 100 130.5393 239.1026

Currentliabilities:Current liabilities 187,019,585 194,101,605 259,812,203 100 103.7868 138.9225

Provision fortaxation

18,442,538 25,341,237 34,391,806 100 137.4065 186.4809

Sub total (A) 205,462,123 219,442,842 294,204,009 100 106.8045 143.1914

Loans (B) 336,847,833 448,032,058 1,125,855,826 100 133.0073 334.2328

Shareholders

fund:Share capital 82,021,809 82,021,809 221,590,809 100 100 270.1608

Reserves &surplus

220,125,849 352,852,415 377,469,702 100 160.2958 171.479

Sub total (C) 302,147,658 434,874,224 599,060,511 100 143.9277 198.2675

TOTAL(A+B+C) 844,457,614 1,102,349,124 2,019,120,346 100 130.5393 239.1026


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INTERPRETATION:-

For trend analysis, the use of index numbers is generally advocated.

The procedure followed is to assign the number 100 to items of the base year and to calculate

percentage changes in each item of other years in relation to the base year. This procedure may

be called as Trend-percentage method.

By way of analyzing the above Trend analysis statement the following

Points are worth noting.

(i) Total assets increased from 100% to 239.10% during the periods 2008-2010

Total current assets are increased from 100% to 231.91%

Total fixed assets are increased from 100% to 231.91%

Investments are increased from 100% to 114.06%

Fictitious assets are decreased from 100% to 60%

(ii) Total liabilities increased from 100% to 239.10% during the periods 2008-2010

Total current liabilities are increased from 100% to 143.19%

Loans & funds are increased from 100% to 334.23%

Shareholders funds are increased from 100% to 198.26%


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COMPARATIVE BALANCE SHEET AS ON MARCH 31,

2008 and 2009

Particulars 2008 2009 Absolute changein 2008-09 % change in2008-09

Assets:

Current Assets:

Inventories 271,428,799 309,192,143 +37,763,344 +13.91

Sundry debtors 18,113,070 16,504,157 -1,608,913 -8.88

Deposits 7,787,309 9,927,806 +2,140,497 +27.48

Cash & Bank balances 129,569,540 166,447,388 +36,877,848 +28.46

Loans& advances 72,333,257 95,244,304 +22,911,047 +31.67

Sub total (A) 499,231,975 597,315,798 +98,083,823 +19.64

Fixed Assets 326,693,339 439,017,856 +112,324,517 +34.38

Capital work-in progress 15,147,071 62,161,069 +47,013,998 +310.38

Sub total (B) 341,840,410 501,178,925 +159,338,515 +46.61

Investment (C) 3,364,853 3,838,099 +473,246 +14.06

Misc.Expenses (D) 20,376 16,302 -4,074 -19.99

Total Assets (A+B+C+D) 844,457,614 1,102,349,124 +257,891,510 +30.53

Liabilities:

Current liabilities 187,019,585 194,101,605 +7,082,020 +3.78

Provision for expenses 18,442,538 25,341,237 +6,898,699 +37.40

Sub total (A) 205,462,123 219,442,842 +13,980,719 +6.80

Secured loans (B) 336,847,833 448,032,058 +111,184,225 +33.01

Net worth:(C)

Share holders fund 82,021,809 82,021,809 0 0

Reserves & surpluses 220,125,849 352,852,415 +132,726,566 +60.29

Total (A+B+C) 844,457,614 1,102,349,124 +257,891,510 +30.53


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INTERPRETATION:-

By way of analyzing the above Balance sheet the following Points are worth noting.

(i) Total assets are increased by 30.53% during 2008-09

Inventories are increased by 13.91%

Deposits are increased by 27.48%

Cash and bank balances are increased by 28.46%

Loans and advances are increased by 31.67%

(ii) Total fixed assets are increased by 46.61%

Fixed assets are increased by 34.38%

Capital work in progress is increased by 310.38%

Investments are increased by 14.06%

Misc.expenses are decreased by 19.99%

(iii) Total liabilities are increased by 30.53% during 2008-09

Total current liabilities are increased by 6.80%

Current liabilities are increased by 3.79%

Provision for expenses are increased by 37.40%

Loans are increased by 33.01%

Shareholders fund no change

Reserves & surpluses are increased by 60.29%


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COMPARATIVE BALANCESHEET AS ON MARCH 31,

2009 and 2010

Particulars 2009 2010 Absolute changein 2009-10

% change in2009-10

Assets:

Current Assets:

Inventories 309,192,143 630,516,341 +321,324,198 +103.92

Sundry debtors 16,504,157 19,477,152 +2,972,995 +18.01

Deposits 9,927,806 11,240,757 +1,312,951 +13.22

cash & Bank balances 166,447,388 236,089,263 +69,641,875 +41.84

Loans & advances 95,244,304 325,165,903 +229,921,599 +241.40

Sub total (A) 597,315,798 1,222,489,416 +625,173,618 +104.66

Fixed Assets 439,017,856 642,857,962 +203,840,106 +46.43

Capital work in progress 62,161,069 149,922,643 +87,761,574 +141.18

Sub total (B) 501,178,925 792,780,605 +291,601,680 +58.18

Investment (C) 3,838,099 3,838,099 0 0

Misc.Expenses (D) 16,302 12,226 -4,076 -25.00

Total Assets (A+B+C+D) 1,102,349,124 2,019,120,346 +916,771,222 +83.16

Liabilities:

Current liabilities 194,101,605 259,812,204 +65,710,599 +33.85

Provision for expenses 25,341,237 34,391,806 +9,050,569 +35.71

Sub total (A) 219,442,842 294,204,010 +74,761,168 +34.06

Secured loans (B) 448,032,058 1,125,855,826 +677,823,768 +151.28

Net worth:(C)

Share holders fund 82,021,809 221,590,809 +139,569,000 +170.16

Reserves & surpluses 352,852,415 377,469,701 +24,617,286 +6.97

Total (A+B+C) 1,102,349,124 2,019,120,346 +916,771,222 +83.16


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INTERPRETATION:-


(i) Total assets are increased by 83.16% during 2009-10

Inventories are increased by 103.92%

Deposits are increased by 13.22%

Cash and bank balances are increased by 41.84%

Loans and advances are increased by 241.40%

(ii) Total fixed assets are increased by 58.18%

Fixed assets are increased by 46.43%

Capital work in progress is increased by 141.18%

Investments are no change

Misc.expenses are decreased by 25%

(iii) Total liabilities are increased by 83.16% during 2009-10

Total current liabilities are increased by 34.06%

Current liabilities are increased by 33.85%

Provision for expenses are increased by 35.71%

Loans are increased by 151.28%

Shareholders fund increased by 170.16%

Reserves & surpluses are increased by 6.97%

\


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COMPARATIVE INCOME STATEMENT FOR THE YEAR ENDED

MARCH 31, 2008 and 2009


% change in2008-09

Income 3,782,229,886 4,700,233,783 +918,003,897 +24.27

(-) Expenses 3,649,828,436 4,508,761,300 +858,932,864 +23.53

Net profit beforetax

132,401,450 191,472,483 +59,071,033 +44.61

(-) provision for tax 33,614,517 56,735,532 +23,121,015 +68.78

Net profit aftertax

98,786,933 134,736,951 +35,950,018 +36.39

INTERPRETATION:-

By way of analyzing the above statement the following Points are worth noting.

(i) Net profit before tax increased by 44.61%

Income is increased by 24.27%

Expenses is increased by 23.53%

(ii) Net profit after tax increased by 36.39%

Provision for tax increased by 68.78%


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COMPARATIVE INCOME STATEMENT FOR THE YEAR ENDED

MARCH 31, 2009 and 2010


% change in2009-10

Income 4,700,233,783 6,073,308,529 1,373,074,746 29.21

(-) Expenses 4,508,761,300 5,822,318,871 1,313,557,571 29.13

Net profit beforetax

191,472,483 250,989,658 59,517,175 31.08

(-) provision for tax 56,735,532 86,799,320 30,063,788 52.98

Net profit aftertax

134,736,951 164,190,338 29,453,387 21.85

INTERPRETATION:-


(i) Net profit before tax increased by 31.08%

Income is increased by 29.21%

Expenses is increased by 29.13%

(ii) Net profit after tax increased by 21.85%

Provision for tax increased by 52.98%


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COMMAN SIZE BALANCE SHEET AS AN 31 MARCH 2008-2009

Particulars 2008 2008% 2009 2009%

Assets:

Current Assets:

Inventories 271,428,799 32.14 309,192,143 28.05

Sundry debtors 18,113,070 2.14 16,504,157 1.50

Deposits 7,787,309 0.92 9,927,806 0.90

cash & Bank balances 129,569,540 15.34 166,447,388 15.09

Loans & advances 72,333,257 8.56 95,244,304 8.64

Sub total (A) 499,231,975 59.11 597,315,798 54.18

Fixed Assets 326,693,339 38.68 439,017,856 39.82

Capital work in progress 15,147,071 1.79 62,161,069 5.63

Sub total (B) 341,840,410 40.48 501,178,925 45.46

Investment (C) 3,364,853 0.39 3,838,099 0.35

Misc.Expenses (D) 20,376 0.002 16,302 0.001

Total Assets (A+B+C+D) 844,457,614 100 1,102,349,124 100

Liabilities:

Current liabilities 187,019,585 22.14 194,101,605 17.61

Provision for expenses 18,442,538 2.18 25,341,237 2.30

Sub total (A) 205,462,123 24.33 219,442,842 19.91

Secured loans (B) 336,847,833 39.88 448,032,058 40.64

Net worth:(C)

Share holders fund 82,021,809 9.712 82,021,809 7.44

Reserves & surpluses 220,125,849 26.06 352,852,415 32.00

Total (A+B+C) 844,457,614 100 1,102,349,124 100


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INTERPRETATION:-


(i) Total current assets are decreased from 59.11% in 2008 to 54.18% in 2009 Inventories are decreased from 32.14% to 28.05%

Sundry debtors are decreased from 2.14% to 1.50%

Deposits decreased from 0.92% to 0.90%

Cash & bank balances decreased from 15.34% to 15.09%

Loans and advances are increased from 8.56% to 8.64%

(ii) Total fixed assets are increased from 40.48% to 45.46%

Fixed assets are increased from 38.68% to 39.82%

Capital work in progress is increased from 1.79% to 5.63%

(iii) Total current liabilities decreased from 22.14% in 2008 to 17.61% in 2009

(iv) Secured loans increased from 39.88% in 2008 to 40.64% in 2009

(v) Shareholders fund decreased from 9.71% in2008 to 7.44% in 2009

(vi) Reserves & surpluses increased from 26.06% in 2008 to 32% in 2009


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COMMAN SIZE BALANCE SHEET AS ON

MARCH 31 , 2009-2010

Particulars 2009 2009% 2010 2010%

Assets:

Current Assets:

Inventories 309,192,143 28.04 630,516,341 31.22

Sundry debtors 16,504,157 1.49 19,477,153 0.96

Deposits 9,927,806 0.90 11,240,757 0.55

cash & Bank balances 166,447,388 15.09 236,089,263 11.69

Loans & advances 95,244,304 8.64 325,165,903 16.10

Sub total (A) 597,315,798 54.18 1,222,489,417 60.54

Fixed Assets 439,017,856 39.82 642,857,962 31.83

Capital work in progress 62,161,069 5.63 149,922,643 7.42

Sub total (B) 501,178,925 45.46 792,780,605 39.26

Investment (C) 3,838,099 0.34 3,838,099 0.19

Misc.Expenses (D) 16,302 0.0014 12,226 0.0006

Total Assets (A+B+C+D) 1,102,349,124 100 2,019,120,347 100

Liabilities:

Current liabilities 194,101,605 17.60 259,812,204 12.86

Provision for expenses 25,341,237 2.29 34,391,806 1.70

Sub total (A) 219,442,842 19.90 294,204,010 14.57

Secured loans (B) 448,032,058 40.64 1,125,855,826 55.75

Net worth:(C)

Share holders fund 82,021,809 7.44 221,590,809 10.97

Reserves & surpluses 352,852,415 32.00 377,469,702 18.69

Total (A+B+C) 1,102,349,124 100 2,019,120,347 100


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INTERPRETATION:-


(i) Total current assets are increased from 54.18% in 2009 to 60.54% in 2010 Inventories are increased from 28.05% to 31.22%

Sundry debtors are decreased from 1.50% to 0.96%

Deposits decreased from 0.90% to 0.55%

Cash & bank balances decreased from 15.09% to 11.69%

Loans and advances are increased from 8.64% to 16.10%

(ii) Total fixed assets are decreased from 45.46% to 39.26%

Fixed assets are decreased from 39.82% to 31.83%

Capital work in progress is increased from 5.63% to 7.42%

(iii) Total current liabilities decreased from 17.61% in 2009 to 12.86% in 2010

(iv) Secured loans increased from 40.64% in 2009 to 55.75% in 2010

(v) Shareholders fund increased from 7.44% in 2009 to 10.97% in 2010

(vi) Reserves & surpluses decreased from 32% in 2009 to 18.69% in 2010


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COMMON SIZE INCOME STATEMENT FOR THE YEAR ENDED

MARCH 31, 2008 and 2009

Particulars 2008 2008% 2009 2009%

Income 3,782,229,886 100 4,700,233,783 100

(-) Expenses 3,649,828,436 96.49 4,508,761,300 95.92

Net profit before tax 132,401,450 3.50 191,472,483 4.07

(-) provision for tax 33,614,517 0.88 56,735,532 1.20

Net profit after tax 98,786,933 2.61 134,736,951 2.86

INTERPRETATION:-


(i) Net profit before tax increased from 3.50% in 2008 to 4.07% in 2009

Expenses decreased from 96.49% to 95.92%

(ii) Net profit after tax increased from 2.61% in 2008 to 2.86% in 2009

Provision for tax increased from 0.88% to 1.20%


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COMMON SIZE INCOME STATEMENT FOR THE YEAR ENDED

MARCH 31, 2009 and 2010

Particulars 2009 2009% 2010 2010%

Income 4,700,233,783 100 6,073,308,529 100

(-) Expenses 4,508,761,300 95.92 5,822,318,871 95.86

Net profit before tax 191,472,483 4.07 250,989,658 4.132

(-) provision for tax 56,735,532 1.20 86,799,320 1.42

Net profit after tax 134,736,951 2.86 164,190,338 2.70

INTERPRETATION:-


(i) Net profit before tax increased from 4.07% in 2009 to 4.13% in 2010

Expenses decreased from 95.92% to 95.86%

(ii) Net profit after tax decreased from 2.86% in 2009 to 2.70% in 2010

Provision for tax increased from 1.20% to 1.42%


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BALANCE SHEET AS ON 31.03.2006

Particulars 2005-06 2004-05

I. SOURCE OF FUNDS :

1) Shareholders Fund 23050000.00 23050000.00

2) Reserves and Surplus 64515839.95 48579189.00

3) Secured Loans 104256408.06 183326618.00

4) Un-Secured Loans 80543944.00 0.00

Total 272366192.01 254955807.00

II. APPLICATION OF FUNDS :

1) Fixed Assets :

Gross Block 243455584.83 148467660.00

Less: Depreciation 90598828.16 60839408.00152856756.67 87628252.00

Capital Work-in-Progress 9453137.30 43751833.00

Sub Total 162309893.97 131380085.00

2) Investments 2610000.00 2610000.00

4) Current Assets :

Inventory 100760856.00 109075147.00

Sundry Debtors 6844432.02 6358113.00Deposits 7347643.00 4321650.00

Cash and Bank Balances 38838401.96 26367433.00

Loans, Advances & Prepaid Expenses 22284157.78 25367449.00

Sub Total 176075490.76 171489792.00

Less: Current Liabilities & Provisions :

Current Liabilities 60299284.76 43492221.00

Provision for Expenses 8349907.96 7087149.00

Sub Total 68649192.72 50579370.00

NET CURRENT ASSETS 107426298.04 120910422.00

5) Misc. Expenses to the extent not written off 20000.00 55300.00

Total 272366192.01 254955807.00


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PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31.03.2006


I. INCOME :Sales 1483468207 1240400781

Conversion Charges Received 1778101 0

Other Income 5370829.41 3954779

Increase / (Decrease) in Stock -31851606 -504947

1458765532 1243850613

II. EXPENDITURE :

Raw Materials & Packing Material Consumed 1174717128 1023506571

Processing & Operating Expenses 119458344.5 93831927Salaries, Wages and other payments to Staff 16813493.8 13783556

Administrative & Marketing Expenses 83389660.33 66013137

Interest and Financial Charges 12858460.22 10242362

Depreciation 29759420 19701377

1436996507 1227078930

III. Profit before Tax 21769024.73 16771683

Add: Earlier Year Income (net off expenditure) 0 142680

21769024.73 16914363Less : Provision for Tax -5088074 -4341000

Profit after Tax 16680950.73 12573363

Less : Earlier Year Income Tax -409833 -100006

Fringe Benefit Tax paid -334467 0

15936650.73 12473357

Add: Balance brought forward 48579189.22 36105832

Total 64515839.95 48579189


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3) Secured Loans 383547594.91 104256408.06

4) Un-Secured Loans 80543944.00

Total 586707261.27 272366192.01


1) Fixed Assets :

Gross Block 440627226.29 243455584.83



Sub Total 275112195.35 162309893.97

2) Investments 3330520.00 2610000.00

4) Current Assets :

Inventory 258935801.10 100760856.00




Sub Total 481952306.00 176075490.76




Sub Total 173735230.58 68649192.72



Total 586707261.27 272366192.01


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I. INCOME :

Sales 2852734310 1483468207

Conversion Charges Received 0 1778101

Other Income 8279964.8 5370829.41

Increase / (Decrease) in Stock 12664932.95 -31851606

2873679208 1458765532

II. EXPENDITURE :

Raw Materials & Material Consumed 2338261619 1174717128

Processing & Operating Expenses 213408095.8 119458344.5

Salaries, Wages and other payments to Staff 29470626.3 16813493.8

Administrative & Marketing Expenses 167759793.7 83389660.33

Interest and Financial Charges 23599653.78 12858460.22


2812868852 1436996507

III. Profit before Tax 60810355.9 21769024.73

Add: Earlier Year Income (net off expenditure) 0

60810355.9 21769024.73

Less : Provision for Tax 13794988 -5088074

Profit after Tax 47015367.9 16680950.73

Less : Earlier Year Income Tax 1022019 -409833

Fringe Benefit Tax paid 547908 -334467

45445440.9 15936650.73

Add: Balance brought forward 75681843.46 48579189.22

Total 121127284.4 64515839.95


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3) Secured Loans 336847834.34 383547594.91

Total 638995492.05 586707261.27


1) Fixed Assets :

Gross Block 554283910.07 440627226.29



Sub Total 341840409.98 275112195.35

2) Investments 3330520.00 3330520.00

Diffred Tax Asset 34333.00

4) Current Assets :

Inventory 271428798.97 258935801.10




Sub Total 499231975.44 481952306.00




Sub Total 205462122.77 173735230.58



Total 638995492.05 586707261.27


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I. INCOME :Sales 3738023759 2852734310

Other Income 20013458.95 8279964.8

Increase / (Decrease) in Stock 24192667.55 12664932.95

3782229886 2873679208

II. EXPENDITURE :



Salaries, Wages and other payments to Staff 43541859.5 29470626.3Administrative & Marketing Expenses 213490288.3 167759793.7



3649828436 2812868852


Less : Provision for Tax 32986706 13794988

Fringe Benefit tax 627811 547908

Profit after Tax 98786932.35 46467459.9Add: Differed Tax 34333 0

Previous Year Items 178851 0

Less : Income Tax Previous Years 1552 1022019

98998564.35 45445440.9


Total 220125848.7 121127284.4


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3) Secured Loans 448032057.75 336847834.34

Total 882906282.15 638995492.05


1) Fixed Assets :

Gross Block 739924697.18 554283910.07



Sub Total 501178925.91 341840409.98

2) Investments 3730520.00 3330520.00

Diffred Tax Asset 107579.00 34333.00

4) Current Assets :

Inventory 309192142.75 271428798.97




Sub Total 597315798.69 499231975.44




Sub Total 219442842.85 205462122.77



Total 882906282.15 638995492.05


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I. INCOME :

Sales 4707947739 3738023759

Other Income 21160133.04 20013458.95

Increase / (Decrease) in Stock -28874088.5 24192667.55

4700233784 3782229886

II. EXPENDITURE :



Salaries, Wages and other payments to Staff 66503435.9 43541859.5

Administrative & Marketing Expenses 264456755.5 213490288.3



4508761300 3649828436




Profit after Tax 134736951.7 98786932.35

Add: Differed Tax 73246 34333



132726566.7 98998564.35


Total 352852415.4 220125848.7


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3) Secured Loans 1125855826.43 448032057.75

Total 1724916337.05 882906282.15


1) Fixed Assets :

Gross Block 1051402312.36 739924697.18



Sub Total 792780605.26 501178925.91

2) Investments 3730520.00 3730520.00

Diffred Tax Asset 107579.00 107579.00

4) Current Assets :

Inventory 630516340.87 309192142.75




Sub Total 1222489416.18 597315798.69




Sub Total 294204009.79 219442842.85



Total 1724916337.05 882906282.15


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I. INCOME :Sales 5859096834 4707947739

Other Income 17348628.33 21160133.04

Increase / (Decrease) in Stock 196863066.4 -28874088.5

6073308529 4700233784

II. EXPENDITURE :

Raw Materials & Materials Consumed 4752723438 3704017569


Salaries, Wages and other payments to Staff 106475698.8 66503435.9Administrative & Marketing Expenses 341971419.1 264456755.5


Depreciation 107637511.5 75380244

5822318871 4508761300




Profit after Tax 164190338.2 134736951.7Add: Differed Tax 0 73246



164186287.2 132726566.7


Total 517038702.6 352852415.4


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S i k l h ti i tit t f i f ti d t i

Trend Analysis of the Balance Shee1

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