PROJECT REPORT
on
FUNDAMENTAL RATIO ANALYSIS
BY
Dhanush S P
1NH18MBA19
Submitted to
DEPARTMENT OF MANAGEMENT STUDIES
NEW HORIZON COLLEGE OF ENGINEERING,
OUTER RING ROAD, MARATHALLI,
BENGALURU
In partial fulfilment of the requirements for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
Under the guidance of
Prof.Sainath
Professor,(Dept of Management)
2018 - 2020
Sensitivity: Internal & Restricted
CERTIFICATE
This is to certify that Dhanush S P bearing USN 1NH18MBA19, is a bonafide student of Master of Business Administration course of the Institute 2018-20, autonomous program, affiliated to Visvesvaraya Technological University, Belgaum. The project report on “FUNDAMENTAL RATIO ANALYISIS” is prepared by him under the guidance of Prof.Sainath, in partial fulfilment of requirements for the award of the degree of Master of Business Administration of Visvesvaraya Technological University, Belgaum Karnataka.
Signature of Internal Guide Signature of HOD Signature of Principal
Sensitivity: Internal & Restricted DECLARATION
I, Dhanush SP, hereby declare that the project report on “Fundamental Ratio Analysis” with reference to “JOHN DISTILLERS PVT LTD” prepared by me under the guidance of Prof.Sainath, faculty of M.B.A Department, New Horizon College of Engineering.
I also declare that this project report is towards the partial fulfilment of the university regulations for the award of the degree of Master of Business Administration by Visvesvaraya Technological University, Belgaum.
I have undergone an industry project for a period of Twelve weeks. I further declare that this report is based on the original study undertaken by me and has not been submitted for the award of a degree/diploma from any other University / Institution.
Signature of Student Place: Date:
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ACKNOWLEDGEMENT
The successful completion of the project would not have been possible without the guidance and support of many people. I express my sincere gratitude to Venu Kumar, Recovery Head, John Distillers Pvt Ltd, Bengaluru, for allowing to do my project at John Distillers Pvt Ltd.
I thank the staff of John Distillers Pvt Ltd, Bengaluru for their support and guidance and helping me in completion of the report.
I am thankful to my internal guide Prof.Sainath, for his constant support and inspiration throughout the project and invaluable suggestions, guidance and also for providing valuable information.
Finally, I express my gratitude towards my parents and family for their continuous support during the study.
DHANUSH S P 1NH18MBA19
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TABLE OF CONTENTS
SL. NUMBER CONTENTS PAGE NUMBERS
1 Executive Summary 7
2 Theoretical Background Of The Study 8-9
3 Industry Profile &Company Profile 10-23
4 Application Of Theoretical Framework 24-33
5 Research Methodology 34-39
Analysis And Interpretation Of Financial 6 40-78 Statements And Reports Learning Experience- Findings, 7 79-83 Suggestions And Conclusion
8 Bibliography 84
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LIST OF FIGURES Sl.No Name of the Table Page Numbers 1 Benchmarks for comparisons of ratios 25 2 Guidelines for use of ratios 28 3 Significance of Ratio Analysis 30 4 Types of Ratios 33 5 Liquid Ratio Types 41 6 Graph of Current Ratio 45 7 Graph for Quick ratio 49 8 Types of Profitability Ratio 50 9 Graph of Gross Profit Ratio 54 10 Graph of Operating Margin 57 11 Graph for Net Profit Margin 61 12 Graph for Return on Capital Employed 66 13 Graph for Total Asset Turnover Ratio 70 14 Graph for Fixed Asset Ratio 73 15 Comparison of Current Ratio Graph 75 16 Comparison of Quick Ratio Graph 76 17 Comparison of Net Profit Graph 77 18 Comparison of Return on Asset Graph 78
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LIST OF TABLES
Sl.No Name of the Figures Page Numbers
1 Data of Current Ratio 44 2 Data for Quick ratio 46 3 Data for Gross Profit ratio 51 4 Gross Profit Ratio 53 5 Data for Operating Ratio 55 6 Operating Margin 57 7 Data for Net profit Margin 58 8 Net Profit Margin 60 9 Data for Return on Capital Employed 63 10 Return on Capital Employed 65 11 Data for Return on Assets 67 12 Total Asset Turnover Ratio 69 13 Data for Fixed Asset Turnover Ratio 71 14 Balance Sheet of JDL 86 15 Balance Sheet of Radico Kahitan 87 16 Balance Sheet of United Breweries 88 17 Balance Sheet of GM Breweries 89
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PREFACE
It involves incredible delight and benefit for me to put before the regarded peruses of this report on "Understanding the Financial Position of JOHN DISTILLERIES" for the years 2015-19. The report basically includes the budgetary examination of JOHN DISTILLERIES Pvt. Ltd, in the formo of ratio_ analysis.
The preparation included the everyday working at JOHN DISTILLERIES. This task helped me to comprehend the working proficient condition and helped me break down the money related information very well additionally great comprehension of the Ratio Analysis and understanding and how organizations take monetary choice to reinforce their organization
For this Project study, I have considered 5 years accounting report of the organization have been picked for proportion investigation and understanding. The fundamental target of the investigation understanding this undertaking is to enhance scholastic information with outright useful presentation to everyday activity of the business association.
The primary period of the task is to examine and build up a more profound comprehension of the idea of Ratio investigation of fiscal summaries and the utilization of the equivalent
Second stage incorporates the investigation of the organization's budgetary position dependent on count of different ratios like liquidity ratios, profitability proportions and turnover ratios.
The last stage is tied in with reaching inference about the organization's money related situation on the ratios so determined.
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CHAPTER –1
BACKGROUND BACKGROUNDAND NEED OF THE STUDY AND
NEED OF THE
STUDY
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NEED OF THE STUDY:
The task study is likewise led to improve my insight as an understudy of finance.
Ratio Analysis holds a significant spot in money related bookkeeping and monetary administration. This point is picked taking into account its hugeness in any budgetary set up. It urges the accounting information to be summarized and improved in a fundamental structure. It gives fundamental data to the administration to take brief choice identifying with business. Ratio Analysis examination uncovers gainful and unfruitful exercises. In this way, the administration can focus on beneficial exercises and thinks about improving the proficiency. Ratio Analysis is utilized as an estimating bar for successful control of execution of business exercises.
To have good knowledge this concept and to get a precise presentation of this idea of financial administration, this venture study is embraced.
The accompanying focuses further feature the requirement for study led:
For understanding the idea of proportion examination.
For understanding the financial noteworthiness of extent assessment for any association or organization
Role of Ratio examination in assessing generally speaking budgetary situation of any organization
For distinguishing the segments of proportion examination to have the option to perceive their commitment in administrative dynamic
For estimating the exhibition of an organization's gainfulness position
For estimating the presentation of an organization's liquidity position
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CHAPTER 2
COMPANY PROFILE
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INTRODUCTION
John Distilleries Pvt Ltd is an Indian company that produces distilled beverages, and the company's flagship brand is Original Choice whisky. It also manufactures brandy, whisky, wines, and the award winning single malt whisky called Paul John
HISTORY:-
John Distilleries was established by Paul P. John, initially from Kerala and the child of a ranch and alcohol aristocrat in Karnataka. He additionally has interests in hospitality. The organization's first refinery (distillery) was set up in Bangalore, Karnataka. The organization propelled Original Choice whisky in 1996. The brand was a moment achievement, taking John Distilleries to the highest point of the portion of the Indian whisky showcase. The organization chose to take the brand national, and marked Malayalam film entertainer Mohanlal as proxy brand envoy.
John Distilleries sold 4,000,000 cases in 2005. Original Choice was the biggest selling IMFL brand in Karnataka that year, selling about two lakh cases a month with John Distilleries' general IMFL deals by volume in the state adding up to around 1.2 million cases. Original Choice sold about 4.5 million cases in 2006, and 6.41-million cases in 2007.
John Distilleries propelled the Big Banyan wines in 2007. Big Banyan Wines is named after the Big Banyan Tree close to Bangalore, where the corporate central command of John Distilleries is found. The main wine producer is oenologist Lucio Matricardi, who is an expert at wineries in Italy. Big Banyan at first propelled five varietals. John Distilleries authoritatively propelled two new variations under its Big Banyan brand on 7 July 2010 at The Paul, Bangalore, a business lodging possessed by Paul John. The new variations were Rosa Rossa, a rose wine, and Bellissima Late Harvest Muscat, a sweet wine. Bellissima is the Italian word for excellent. Bellissima is the first sweet wine in Quite a while to be produced using the Muscat grape.
John Distilleries gained Chitali Distilleries Limited (CDL) in August 2008 for ₹288 million (US$4.0 million). It was John Distilleries first procurement outside South India, and empowered it to create amended soul and additional nonpartisan liquor. The organization was converged with JDL on 1 October 2010. Chitali Distilleries had recently been completely
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claimed by the Government of Maharashtra and is situated in Shrirampur in Ahmadnagar locale.
John Distilleries set up itself in South India, retailing in Karnataka, Kerala, Goa, Puducherry and Andhra Pradesh. In mid 2009, it started retailing in Punjab, Haryana, Himachal Pradesh, Chandigarh, Rajasthan, Jharkhand, Bihar, Maharashtra and Chhattisgarh. John Distilleries propelled a brand of French cognac called Mônt Castlé in December 2009. Mônt Castlé was accessible across Karnataka in pearly glass jugs of 750 ml, 375 ml, 180 ml and 90 ml. The brand later extended to different states. Its primary rivalry is Mumbai-based Tilaknagar Industries' lead Mansion House cognac.
John Distilleries sold 12.5 million cases in 2009. On 1 October 2010, The organization propelled Roulette cognac in 2012.
The organization has consistently been making mixed whisky, yet chose to make single malt whisky in 2008 trying to enter the top notch fragment of the market. John Distilleries decided to utilize Indian fixings to give the whisky attributes of its nation of beginning. The first packaging of Paul John whisky, marked "Paul John Single Cask 161 Whisky", was formally propelled in London, UK, on 4 October 2012 by Sanjay Paul, CEO of Alcobev Communications, at the Capital Hotel in Knightsbridge, London, England. The brand's subsequent discharge, "Paul John Single Cask 163 Whisky" was additionally discharged by Sanjay Paul, CEO of Alcobev Communications, having 57% abv and estimated at £60. Following the single container discharge, Sanjay Paul, CEO of Alcobev Communications discharged Paul John's lead single malt whiskies in May 2013. They were marked Paul John Brilliance, Paul John Edited and Paul John Bold. These articulations go from unpeated to peated and are accessible across 38 nations on the planet today. With more than 200 known worldwide honors, the scope of articulations additionally incorporate Select Cask Classic and Select Cask Peated.
VISION OF THE COMPANY Devoted to reliably amuse our clients with excellent brands and significant encounters, John Distilleries Pvt Ltd's guiding principle of virtue, quality and moderateness have pushed us to be one of the most commended alcobev organization in India. We immovably work to surpass ourselves in the business and in the hearts of our clients.
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VALUES OF THE COMPANY
To reliably convey results of the most noteworthy immaculateness, quality and moderateness; to give a culture to development and chances to all representatives; to amuse purchasers with our current brands and make critical encounters dependably; to keep our environment green and solid and to advance responsible drinking.
JOHN DISTILLERIES VALUES JOHN DISTILLERIES Core Values are planned for building up a client concentrated, elite association, which makes an incentive for every one of its partners. FOCUS ON CUSTOMER JOHN DISTILLERIES accepts that client center is significant. We offer significance to convey both worth and quality to the client. EXCELLENCE JOHN DISTILLERIES will take a strive at greatness in whatever we do. JOHN DISTILLERIES will take the correct way to do whatever we do and exceed expectations in the equivalent. RESPECT FOR PEOPLE JOHN DISTILLERIES will esteem contrasts in individual viewpoints. JOHN DISTILLERIES need people to dream, make and analysis in quest for circumstances and accomplish initiative through collaboration.
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BOARD OF DIRECTORS
MANAGEMENT PAUL P. JOHN - CHAIRMAN AND MANAGING DIRECTOR
An business person by decision, Paul P John was conceived in Kerala and spent quite a bit of his childhood in Bangalore where he currently dwells. He wandered into the liquor refreshment industry in 1992 and inside a limited capacity to focus a little more than 10 years, his arrive at spread from his central station in Bangalore, Karnataka extended to every single neighboring state. Today the organization is the fourth biggest alcohol organization in the nation by volume with a creation spread across 8 areas and 7 states in India and a yearly turnover surpassing Rs. 700 crores. His energy to outperform the customary drove him to make a scope of excellent single malts, fine whiskies and wines.
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Sridhar Pongur
Sridhar Pongur is enlisted in Karnataka, is a chief in 3 organizations : John Distilleries Private Limited , Chitali Distillery Limited and Confederation Of Indian Alcoholic Beverage Companies
Neelakantan Krishnan Namboodiri
Neelakantan Krishnan Namboodiri is enlisted in Karnataka, is a chief in 4 organizations: John Distilleries Private Limited, Chitali Distillery Limited, Bloomingdale Hospitalities Private Limited and John Sugars And Allied Products Private Limited .
Abhilash Unnikrishnan Abhilash Unnikrishnan is a director in 1 companies: John Distilleries Private Limited .
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BRANDS
John Distilleries manufactures brandy, whisky, wines, and single malt whisky. Original Choice whisky contributed almost 90% of JDL's overall sales in 2010. The company currently manufactures the following brands:
Whisky
Original Choice
With Original Choice, nuance meets multifaceted nature; development in new oak wood barrels confers an ideal parity and an unmistakable flavor, settling on it the Choice of Millions.
Original Choice is one of the top selling brands in India's famous whisky section and is one of the best 10 selling whiskies around the world, with deals surpassing 11 million cases per year.
BLACK PELICAN WHISKY
Black Pelican Fine Whisky separates itself with its extraordinary taste, delighted in by recognizing buyers. Black Pelican whisky has an active and carefree nature that you can hang along and have an unwinding and extraordinary time with. Black Pelican Whisky is accessible in Karnataka.
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Paul John 1. Driven by the zest to break conventions, our Chairman Paul P John set out to infiltrate the most noteworthy layers of the universe of whisky to make his very own specialty, with the Paul John Indian Single Malts
2. Propelled in the UK, this selective scope of Indian Single Malts is currently accessible across 38 nations including Europe, UK, USA, Canada, Australia, New Zealand, South Africa, Asia, just as Duty-Free Shops (Dubai, Qatar, Abu Dhabi, Sydney, Bangalore, Chennai and Kolkata). The Paul John Single Malts were as of late presented in the Indian markets including Goa, Bangalore, Mumbai, Pune, Delhi, Chandigarh, Chhattisgarh, Pondicherry, Daman, Hyderabad, Assam and Kerala.
Brandy
Mônt Castlé Mônt Castlé French Grape Brandy is created to flawlessness utilizing uncommonly picked grapes in the respected pot-stills; along these lines conveying genuine and serious flavors improved with maturing in imported oak barrels. Make the most of its full-bodied perfection. Mont Castle is accessible in Karnataka, Andhra Pradesh, Pondicherry, Kerala and Tamilnadu.
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Roulette Astonishingly refined in the revered pot-still from deliberately chosen grapes, Roulette is then developed close by made oak barrels from the Limousine timberlands of France to create an especially smooth mix. Fragrant with vanilla and oak smells, an unobtrusive hotness and sugary perfection, the superb, long-waiting smooth completion finishes the experience that is truly.... Roulette. Roulette premium grape brandy is accessible in Andhra Pradesh, Pondicherry and Telangana.
Wines
Ampersand (stylized amp&rsand)
Ampersand is a very simple and rich mix of the choicest grapes from select Indian vineyards. Their new, fruity and lively flavor makes it a simple to drink ordinary wine. In vogue, well disposed, agreeable and very Ampersand. Ampersand wine is accessible in Goa and Karnataka.
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Big Banyan 1. Big Banyan is an outflow of our unprecedented excursion from grape to glass. 2. Every taste of wine you take tells a story of the land it originated from, its remarkable terroir, the hands that supported the delicate vines and culled the stout grapes, and the vintner who did something amazing. It mirrors your state of mind, the event and the 'occasion' you are in. 3. We make these rich wines, we gather grapes from our vineyards in Bengaluru, and furthermore handpick a couple of varietals from select vineyards across India. They are then changed into wine at our best in class wineries in Goa and Bengaluru, under the careful gaze of Lucio Matricardi, our Italian winemaker. 4. The assortment incorporates three red wines (Shiraz, Merlot, Cabernet Sauvignon), three white wines (Chardonnay, Chenin Blanc and Sauvignon Blanc), a rosé wine (Rosa Rossa), a treat wine (Bellissima) and a Limited Spring Reserve Shiraz. 5. Over the years, our wines have gotten a lot of recognition and numerous an esteemed award. They are a demonstration of our organization's vision of making the best Indian spirits. 6. Available in Karnataka, Goa, Kerala, Pondicherry and Telangana.
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Goana's Wine
A strengthened wine made to flawlessness in the customary Goan way. It arrives in an impeccable originator bottle with an intense wine red shading and presents an ideal science of taste and love produced using select Indian grape varietals. Goana's Wine is accessible in Karnataka and International markets.
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MANUFACTURING
John Distilleries has a network of 8 manufacturing units spread over 7 states. Our strength lies in the complete integration of manufacturing with a primary distillery, a malt plant, bottling units, a winery.
STATES:
Karnataka : Bangalore & Davangere Goa Maharashtra : Chitali Kerala Andhra Pradesh Telangana Pondicherry
EXPORTS AND INTERNATIONAL BUSINESS
1. Being one of the main drink liquor exporters in India, John Distilleries has an engaged International Business group that reliably attempts to extend the organization's impression over the globe.The group endeavors to accomplish client please by working connected at the hip with accomplices while concentrating on building brand value in abroad markets also. 2. Paul John Single Malt Whisky is sold in more than 36 nations, including USA, UK, Germany, France, Canada, Australia, New Zealand and other Europian and Asian markets. The IMFL items are sold across UAE, Middle East and African markets.
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FEW PRODUCTS OF JOHN DISTILLERS PVT LTD
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RATIO ANALYSIS
INTRODUCTION: Analysing of the financial statements of the company and interpreting of the financial results of a particular period of operations with the help of ratio is termed as “Ratio Analysis”. Ratio Analysis one of the form of Financial Analysis that is used to get the effective and quick indication of a company’s performance in financial terms in several key areas.
MEANING AND DEFINITION:
A Ratio nothing but is a simple arithmetical expression of the relationship of one number to another. The relationship lies as quantitative in nature between two numbers
As per Batty, Ratio can be characterized as "the term of bookkeeping, proportion is utilized to portray the significant relationship which exist between the numbers or qualities appeared in an asset report and benefit and misfortune account in financial control framework or some other piece of the record the executives".
Ratios can be interpreted in two forms
(1)In the form of percentage (%)
(2)In the form of Quotient (x : y)
Ratio is always calculated by dividing the actual figure/value/number by a figure.
NATURE OF RATIO ANALYSIS:
Ratio analysis is a one of the technique for analysis and interpretation of financial statements. It is one of the key procedure of deciphering and building up different proportions for aiding in settling on certain better and firm choices. However, interpretation of ratio analysis is not only end itself. It only means of better understanding of financial strengths and weakness of a firm. Mere calculations of ratios does not serve any purpose unless several appropriate ratios are analysed and interpreted.
The following are the major four steps involved analysing of ratio:
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i. Choice of relevant information from the money statements relying upon the target of the analysis ii. Estimation of the allocation proportions from the above data. iii. Comparison of the calculated ratios with the ratios of an equivalent firm within the past, or the ratios developed from the projected financial statements or the ratios of another companies or the comparison with ratios of the business to that the firm belongs iv. Interpretation of the Ratios
BENCHMARK:
Ratio analysis is a very important tool of financial analysis. By establishing logical relationship between the items of balance sheet and profit and loss account, the financial strengths and weakness of the entity can be analysed by comparing them with the benchmarks.
Benchmarks
. Inter-Company Intra- Comapny comaprision Industry Comparision comparision
Figure 1: Benchmarks for comparisons of ratios
Inter- Company comparison is nothing but the comparing ratio of one entity to that of another entity in the same industry.
Industry comparison is comparing the enterprise average with the industry average
Intra company comparison is comparing ratio for the same entity over a period of years
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PRINICPLES OF RATIO SELECTION
The principles that should be considered before choosing the ratio:
(1) Ratio ought to be intelligently between related.
(2) Pseudo proportions ought to be maintained a strategic distance from.
(3) Ratio must be a quantifiable material factor of business.
(4) Cost of getting data ought to be considered at the top of the priority list.
(5) Ratio ought to be in least numbers.
(6) Ratio ought to be offices practically identical
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INTERPRETATION OF THE RATIOS
There may be number of ways for the interpretation of ratios, but below mentioned are the common approaches where company goes for.
A. Single Absolute Ratio: In general, one should not draw any meaningful conclusion when a single/individual ratio is considered in isolation. Few individual ratios may be considered in relation to certain thumb rule which are based upon and shown as well proven conventions as for example 2:1 and 1:1 is considered to be a good ratio for current assets to current liabilities for Current ratio and Quick ratio respectively
B. Group of Ratios : A single ratio supported by other related additional rules becomes more understandable and meaningful
C. Historical Comparison: One of the simple, easiest and most popular ways of evaluating the performance of the firm is to compare its present ratios with the past ratios called comparison overtime
D. Projected Ratios: Ratios can be calculated for the future standards based upon the projected or proforma financial statements. These future ratios can be considered as a standard for comparing and the ratios which are calculated on actual financial statements can be compared with the standard ratios to find out variances of the firm
E. Inter-firm comparison: Ratios of one company can also be compared with the ratios of some other selected company in the same business type at the same point of time. This kind of comparison helps in evaluating financial position and performance of the company
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GUIDELINES FOR USE OF RATIOS
2.Objective
1.Accuracy 3.Selection
6.Provides 4.Standards base usage
5.Calibre
Figure 2 Guidelines for use of ratios
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1. Exactness in Financial Statements: The proportions are determined from the information which are accessible in fiscal reports. The unwavering quality of proportions is connected to the precise information accessible
2. Objective or purpose of Analysis: The reason or article for which ratio are required to be considered ought to consistently be remembered for examining different ratios. Diverse sort items may require the investigation of various ratios.
3. Choosing of Ratios: Another precaution measure in analysing of ratio is the proper choice appropriate ratios. The ratios which are chosen should match the funtion for which these are required for the analysing purpose
4. Usage of Standards: The ratios can provides a symptom of economic position only mentioned with bearing on few specific standards. Till and unless differentwise these ratios area unit compared with other few standards one won't be ready to reach at conclusions.
5. Calibre of the Analysis: The ratios are solely the tools of study and their interpretation can rely upon the calibre and ability of the analyst. A wrong interpretation might produce disturbance for the concern since wrong conclusions might result in wrong call.
6. Ratios offer only a Base: The ratios are solely tips for the analyst, he mustn't base his selections entirely on them. He ought to study the other relevant info, state of affairs within the concern, general economic setting,etc.before reaching final conclusion
These are the standard guidelines which one should keep in mind for the analysis of ratio
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SIGINIFICANCE OF RATIO ANALYSIS
Managerial Usage
Tax Audit Investors Requirements
Significance
Govermnet Creditors
Employess
Figure 3 Significance of Ratio Analysis
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1. Managerial Uses Of Ratio Analysis
a) Helps in settling on savvy Decision – Making: Financial Statements are arranged basically for dynamic. Proportion Analysis helps in settling on choices from the data gave in these budget report b) Helps in Financial Forecasting and Planning: Planning in looking forward and the proportions determined for various years fill in as a guide for what's to come. c) Helps in Communication: The money related quality and Weakness of a firm are conveyed in love simple and reasonable way by the utilization of proportions. d) Helps in Co-Ordination: Better Communication of Weakness and Efficiency of an organization brings about better co-appointment in the undertaking. e) Helps in Control : Standard proportions can be founded on proforma fiscal summaries and changes or deviations, assuming any, can be found by contrasting the genuine and the measures to make a remedial move at the opportune time
2. Utility Of Shareholders /Investors
A speculator in the organization will get a kick out of the chance to evaluate the budgetary Position of the worry where he will contribute. His first premium will be the security of his venture and afterward an arrival as profit or intrigue. Long haul dissolvability proportions will help him in evaluating monetary situation of the worry. Gainfulness proportions, then again, will be helpful to decide productivity position.
3. Utility to creditors
The banks,Creditors or Suppliers stretch out transient credit to the worry. They are intrigued to know whether money related situation of the worry warrants their installments at a specific timeframe or not. It will give a thought regarding the current budgetary situation of the worry..
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4. Utility to Employees
Even the employees of the company are keen to know the financial position of the company especially the profitability. Various ratios relating to net profit, Operating profit, gross profit etc will help employees to have viewpoint for the utilisation of increase in wages and many other benefits.
5. Utility to Government
Government shows the interests to know the overall performance and strength of the company or the type of its industry. The different financial statements which are published by any company are used to determine ratios for knowing long term, short term and overall financial stability of the concerns. Government may use in future days to bring up the policies basis on these information of the firm.
6. Tax Audit Requirements
As per the Income Tax act of clause 32 needs the following ratios should be provided
i) Gross Turnover / Profit
ii) Net Turnover / Profit
iii) Stock-in-Turnover / Trade
iv) Finished goods Produced
v) Material consumed
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TYPES OF RATIOS
• Gross profit Ratio • Net Profit Ratio Profitablity • Operating Profit ratio Ratio • Return on Capital Employeed
• Debt Equity Ratio Solvency • Interest coverage Ratio Ratios
• Current Ratio Liquidity • Quick Ratio Ratio
• Fixed Asset Turn over Ratio • Inventory Turnover Ratio Turn Over Ratio • Receivable Turnover ratio
• P/E Ratio • Earnings Per Share Earnings Ratio • Return on Net Worth
Figure 4 Types of Ratios
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CHAPTER 3
RESEARCH METHODOLOGY
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RESEARCH METHODOLOGY
1. RESEARCH PROBLEM:
The Problem of the Study is to Understand Financial Position of John Distillers private limited using Ratio Analysis of Financial Statement of the company.
2. OBJECTIVE OF THE STUDY: To develop and execute better understanding of ratios supported money statements. To develop lucidity concerning differing types of ratios and their significance in financial found out. To study and analyse the financial position of the corporate or an organisation through ratio analysis. To recommend measures for rising the financial performance of organization. To study and compare the financial position of company with its competitors through magnitude relation analysis.
3. RESEARCH DESIGN Research methodology is a system or plan to be utilized as a guide in gathering and investigating Information. It is progressively similar to an outline that is followed in this entire finishing an examination. The examination configuration might be exploratory or engaging in nature.
This task depends on graphic research structure. The goal of the spellbinding examination is utilized for frequencies, midpoints and other measurable computations. Subjective research more often than not has the objective of depiction and analysts may catch up with assessments of why the perceptions exist and what the recommendations of the discoveries are
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4. TYPE OF DATA USED Primary data: The primary data has been collected directly from the Finance manager and the other staff members. Secondary Data: The Secondary data was used. Secondary data is data collected by someone other than the user for some other purpose but has some relevance and utility for the user. Secondary data analysis saves time that would otherwise be spent collecting data and provides larger and higher-quality databases that would be unfeasible for any individual researcher to collect on their own. The secondary data is often the most convenient and cost-effective option. Secondary data was collected from official website of JOHN DISTILLERIES PVT LTD
The Secondary Data includes the financial statements of the firm for the last five years i.e from Financial Year statements for the year 2019 Financial Year statements for the year 2018 Financial Year statements for the year 2017 Financial Year statements for the year 2016 Financial Year statements for the year 2015
Period: The study covers a period of five years data from 2019, 2018,2017 , 2016, 2015 mean and Accounting period year of the company consisting of 365 working days
5. PROCEDURE OF DATA COLLECTION: The information in the form of balance sheet and income statement has been collected from the official website of JOHN DISTILLERIES PVT LTD and the Annual reports of the company for past 5years 6. SAMPLING DESIGN The inspecting configuration embraced is Convenience Sampling which goes under Non-Probability Sampling.
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7. SAMPLING SIZE Sampling Unit: Financial Statement (Balance Sheet and P&L account) Sampling Size: Last Five years financial statements of the company
8. STATSISTICAL TOOL USED Statistical tools like bar -graphs, excel sheets have been used in the report so as to make the data more expressive and easily understandable. Bar Graphs are used to show the classification of various main heads under Sources and Application of Funds.
9. LIMITATIONS OF THE STUDY
1. The time accommodated the venture was not adequate. For leading a nitty gritty examination additional time is required.
2. The undertaking gives a general overview of the organization and not explicit one.
3. Ratio Analysis in itself has different restriction like it depends on subjective information and it disregard quantitative information. So while making a decision about an organization's exhibition, one can't totally depend on proportions.
4. Privacy with respect to information assortment was confronted. So the examination is for the most part dependent on Optional information.
5. Limitations on Behalf of the organization.
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10. LITERATURE SURVEY
Justin (1924) in his paper argued that the method of collecting industry information and calculating its average were called “Scientific ratio analysis”. The word “scientific” in his research title was not fully correct because there was no evidence had been found that the formulation and hypothesis testing truly alloted. Bliss (1923) says basic relationship inside the business is indicated by the ratios and developed complete model supported the ratios. the aim model wasn't mature however inspired others to start out performing on this theory.
Foulke (1931) created and promoted own set of economic ratios with success. This set of financial ratios was written and promptly referred to as vital and distinguished cluster of ratios.
Fitzpatrick (1932) with the assistance of 13 completely different kind of ratios analysis a hundred and twenty failing firms and located that 3 out of 13 ratios predict the failure of corporations with precise accuracy whereas different ratios additionally shown some prediction power.
Walter (1957) enclosed income statement things in quantitative relation analysis. At the top of world war fund statement came into existence and with fund statement fund statement ratios was conjointly created.
Pinches and Mingo (1973) valuate the structure of ratios and located that ratios is divided into completely different teams. gift general classification of economic ratios on logical basis. Results finished that the ratios is divided into four teams that ar money leverage, short capital grade, come back on investment and long capital intensiveness
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Stevens (1973) conjointly studies the subject of magnitude relation classification and sorted the monetary ratios in four classes that embody activity, liquidity, leverage and gain
Chen and Shimerda (1981) deeply examined 5 revealed studies and conclude that some of the twelve factors that has been bestowed within the studies has same and easily name is modified. Therefore, twelve factors square measure sorted into seven factors. Seven factors are money position, money leverage, inventory turnover, short liquidity, return on investment, owed turnover and capital turnover.
Gombola and Ketz (1983) found that the fund and profit-and-loss statement area unit created for different purpose and gain ratios failed to has the knowledge that income ratios provide. In different words each ratios gave necessary additionally as completely different info from one and different.
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CHAPTER 4
DATA ANALYSIS AND INTERPRETATION
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CLASSIFICATION OF RATIOS ON THE BASIS OF BALANCE SHEET Balance sheet ratios are monetary metrics that verify relationships between totally different aspects of a company’s financial position i.e. liquidity vs. solvency. They embody solely balance sheet items i.e. parts of assets, liabilities and shareholders’ equity in their calculation.
I. LIQUIDITY RATIO
Liquidity is a measure which shows the ability of the entity to meet its short term financial obligations/commitments as and when they fall-due, in everyday operations, liquidity management is achieved through effective use of an entity's assets. The needs of level of liquidity will differ from one firm to other.
While evaluating an entity's adequacy in terms of liquidity, it is advisable to analyses it historical funding requirement, current liquidity position, Anticipated future funding needs, and options for reducing funding needs or attracting additional funds.
The main purpose of this ratio is to assess capacity of an entity to meet its short term obligation or Ascertainment of short term financial solvency of the enterprise. Thus, it measures the ability of an entity to fulfill its short term commitments out of its liquid assets
TYPES OF LIQUIDITY RATIOS
LIQUIDITY RATIO
CURRENT RATIO QUICK RATIO
Figure 5 Liquid ratio Types
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a) CURRENT RATIO
Current ratio sometimes also referred to as "working capital" ratio. The ratio represents the amount of current assets available for repayment pf current liabilities and also assess whether the entity will be able to meet its short term obligation on time. In other words, it helps to measure the safety margin available for its short term creditors The objective of computing this ratio is to measure the ability of entity to meet its short term obligation /liability thus helps in understanding the short term financial strength and solvency of an entity
A Very high ratio may indicate piling up of stock due to poor sale, In efficient debtor collection policy, resulting in delayed collection of credit, Idle cash
Low ratio suggests entity's inability to meet current obligations from current assets resources. This also indicates greater credit risk
Current assets are those which can be liquidated i.e. converted into cash within a very short period pf time not exceeding a year
CURRENT ASSESTS CURRENT LIABLITIES
Cash in hand Bills Payables Cash at bank Sundry creditors Bill receivables Bank overdraft Short term investment Provision for tax Stock Outstanding expenses Sundry debtors Prepaid expenses
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YEARS 2019 2018 2017 2016 2015
Current Assets 47,650.31 29,851.68 24,975.66 30,719.81 22,619.78
Current Liabilities 33,306.82 30,704.91 26,873.87 30,963.53 23,236.09
Solution:-The Current Ratio is calculated (Mar 2015) as follows: Current Assets = 22619.78
Current Liabilities = 23,236.09 Current ratio = Current Assets / Current Liabilities
= 22619.78 / 23,236.09 = 0.97
Solution:-The Current Ratio is calculated (Mar 2016) as follows: Current Assets = 30,719.81 Current Liabilities = 30,963.53 Current ratio = Current Assets / Current Liabilities
= 30,719.81 / 30,963.53 = 0.99
Solution:-The Current Ratio is calculated (Mar 2017) as follows: Current Assets = 24,975.66 Current Liabilities = 26,873.87 Current ratio = Current Assets / Current Liabilities = 24,975.66 / 26,873.87 = 0.93
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Solution:-The Current Ratio is calculated (Mar 2018) as follows: Current Assets = 29,851.68
Current Liabilities = 30,704.91 Current ratio = Current Assets / Current Liabilities
= 29,851.68 / 30,704.91 = 0.97
Solution:-The Current Ratio is calculated (Mar 2019) as follows: Current Assets = 47650.31
Current Liabilities = 33,206.82 Current ratio = Current Assets / Current Liabilities
= 47650.31 / 33,206.82 = 1.43
YEARS 2019 2018 2017 2016 2015
CURRENT RATIO 1.43 0.97 0.93 0.99 0.97 Table 1 Data of Current Ratio
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CURRENT RATIO 1.60 1.43 1.40
1.20 0.97 0.99 0.97 1.00 0.93
0.80
0.60
0.40
0.20 - 2019 2018 2017 2016 2015
Figure 6 Graph of Current Ratio
Interpretation of Current Ratio:- Ideal ratio is 2:1,The ideal should meet in any of the years from 2015 to 2019 At least 1 is required as it means all the liabilities arising in the next 12 months can be met with the current assets But, here from 2015 to 2018 it is less than 1 which is a problematic situation where company might find it difficult to honor all its short term obligations The highest current ratio is in the year 2019 i.e 1.43 .Higher value shows more of liquidity of the firm stability to pay during its current obligation time. The current ratio is lowest in the year 2017 i.e. 0.93. A low value of current ratio means that the firm may find it difficult to pay its current liabilities as one which is generally recognized as the patriarch among ratios. However, in 2019 ratio has become 1.43 which is a good indicator Over the years, current ratio is increasing which is a good improvement
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b) QUICK RATIO
Quick ratio is also referred as Acid test or Liquid ratio. This establishes a relationship between quick asset and current liabilities and helps in determining if the entity is in a position to pay its current liabilities within a very short period of time (i.e. may be immediately or within a month)
The objective is to measure the ability of an entity to pay its current liabilities as and when due without relying upon the realization of stock.
A quick ratio of 1:1 is considered to be a satisfactory ratio for companies. The rationale behind this is that, for every rupee of current liability a rupee current asset seems satisfactory. Quick ratio is more of conservative measure than current ratio because it constitutes more liquid current assets in relation to current liabilities
YEARS 2019 2018 2017 2016 2015 Current Assets 47,650.31 29,851.68 24,975.66 30,719.81 22,619.78
Inventories 28,147.56 18,248.11 17,397.04 17,107.08 12,112.93
Short Term Loans and Advances 1,598.47 1,491.34 2,178.59 6,021.19 4,618.49
Other Current Assets 6,101.31 208.65 118.92 340.07 808.19 Current Liabilities 33,306.82 30,704.91 26,873.87 30,963.53 23,236.09 Table 2 Data for Quick ratio
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Solution:-The Quick Ratio is calculated (Mar 2019) as follows: Current Assets = 47,650.31 Inventories = 28,147.56 Short Term Loans and Advances = 1,598.47 Other Current Assets = 6,101.31 Current Liabilities = 33,306.82 Quick ratio = Current Assets- (Inventory + PE) / Current Liabilities Quick Ratio = 11,802.97 / 33,306.82 Quick Ratio = 0.35
Solution:-The Quick Ratio is calculated (Mar 2018) as follows: Current Assets = 29,851.68 Inventories = 18,248.11 Short Term Loans and Advances = 1,491.34 Other Current Assets = 208.65 Current Liabilities = 30,704.91 Quick ratio = Current Assets- (Inventory + PE) / Current Liabilities Quick Ratio = 9,903.58 / 30,704.91 Quick Ratio = 0.32
Solution:-The Quick Ratio is calculated (Mar 2017) as follows: Current Assets = 24,975.66 Inventories = 17,397.04 Short Term Loans and Advances = 2,178.59 Other Current Assets = 118.92 Current Liabilities = 26,873.87 Quick ratio = Current Assets- (Inventory + PE ) / Current Liabilities Quick Ratio = 5,281.11 / 26,873.87 Quick Ratio = 0.20
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Solution:-The Quick Ratio is calculated (Mar 2016) as follows: Current Assets = 30,719.81 Inventories = 17,107.08 Short Term Loans and Advances = 6,021.19 Other Current Assets = 340.07 Current Liabilities = 30,963.53 Quick ratio = Current Assets- (Inventory + PE) / Current Liabilities Quick Ratio = 7,251.47 / 30,963.53 Quick Ratio = 0.23
Solution:-The Quick Ratio is calculated (Mar 2015) as follows: Current Assets = 22,619.78 Inventories = 12,112.93 Short Term Loans and Advances = 4,618.49 Other Current Assets = 808.19 Current Liabilities = 23,236.09 Quick ratio = Current Assets- (Inventory + PE) / Current Liabilities Quick Ratio = 5,080.17 / 23,236.09 Quick Ratio = 0.22
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QUICK RATIO
0.40 0.35 0.35 0.32
0.30 0.23 0.25 0.22 0.20 0.20
0.15 0.10 0.05 - 2019 2018 2017 2016 2015
Figure 7 Graph for Quick ratio
Interpretation of Quick Ratio:- The ideal Quick ratio is 1:1. This ideal is not met in any of the years from 2015 to 2019 Even though ratio has increased from 0.20 to 0.35 from 2017 to 2019, this is very low compared to ideal scenario This signifies company will not be able to mobilize funds in shorter duration, hence the company is in a risk of default An Extremely high ratio is an indicator of unnecessary accumulation of funds and bad financial management; on the other hand a company having a quick ratio may not be able to meet its short term obligation in time. An entity should neither have a very high nor a very low ratio. Past ratios should be taken into consideration. The Quick ratio is highest in the year 2019 i.e. 0.35. . High Acid Test Ratio is an indication that the firm has relatively better position to meet its current obligation in time The Quick ratio is lowest in the year 2017 i.e. 0.20. A low value of quick ratio exhibiting that the firm's liquidity position is not good. Over the years, Quick ratio is falling which is a matter of concern.
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CLASSIFICATION OF RATIOS ON THE BASIS OF INCOME STATEMENT
a) PROFITABLITY RATIO The term gain means that the profit earning capability of any commercial activity. Thus, Profit earning is also judged on the amount of gross margin of any activity and is Calculated by subtracting costs from the entire revenue accruing to a firm throughout a Particular period. Profitability ratio is used to measure the potency or Performance of a business. Generally, an outsized range of ratios also can be used for Determining the gain as the same is expounded to sales or investments.
PROFITABILITY RATIO
In relation to Sales In Relation to Investment In relation to Equity
Figure 8 Types of Profitability Ratio
The main aim of the entity is to earn profit which is necessary for the survival and growth of the business entity. It is necessary to know how much profit has been earned with the help of the amount invested in the business .It is possible through Profitability ratio
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a) GROSS PROFIT RATIO Gross profit expresses the relationship between gross profit and the total sales. This ratio indicates the proportion of each rupee of revenue that the entity retains to cover operating and other expenditures of the business. A higher percentage means that the entity retains higher amounts on each rupee of sales to services its other costs and obligation.
YEARS 2019 2018 2017 2016 2015
Sales 93,593.18 81835.14 70415.92 71539.61 60464.41
Consumption of materials 58220.04 52721.95 46054.18 48844.05 42419.61
Purchase of trade goods
Increase /Decrease in stock 2,143.95 1035.28 464.87 217.1 -808.19 Table 3 Data for gross Profit ratio
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Solution:-The Gross Profit is calculated (Mar 2015) as follows: Net Sales = 60464.41
Consumption of Materials = 42419.61 Purchase of trade goods = 0 Increase /Decrease in stock = -808.19
COGS = 43,227.80 (consumption +Purchase of trade goods- inc or dec stock)
Gross profit = 17,236.61 (Net sales – COGS) Gross Profit margin = (Gross Profit / Sales)*100
= 28.51%
Solution:-The Gross profit is calculated (Mar 2016) as follows: Net Sales = 71539.61
Consumption of Materials = 48844.05 Purchase of trade goods = 0 Increase /Decrease in stock = 217.1
COGS = 48,626.95 (consumption +Purchase of trade goods- inc or dec stock)
Gross profit = 22,912.66 (Net sales – COGS) Gross Profit margin = (Gross Profit / Sales)*100
= 32.03% Solution:-The Gross profit is calculated (Mar 2017) as follows: Net Sales = 70415.92 Consumption of Materials = 46054.18 Purchase of trade goods = 0 Increase /Decrease in stock = 464.87
COGS = 45,589.31 (consumption +Purchase of trade goods- inc or dec stock)
Gross profit = 24,826.61 (Net sales – COGS) Gross Profit margin = (Gross Profit / Sales)*100
= 35.26%
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Solution:-The Gross profit is calculated (Mar 2018) as follows: Net Sales = 81835.14
Consumption of Materials = 52721.95 Purchase of trade goods = 0 Increase /Decrease in stock = 1035.28
COGS = 51,686.67 (consumption +Purchase of trade goods- inc or dec stock)
Gross profit = 30,148.47 (Net sales – COGS) Gross Profit margin = (Gross Profit / Sales)*100
= 36.84%
Solution:-The Gross Profit is calculated (Mar 2019) as follows: Net Sales = 93,593.18
Consumption of Materials = 58220.04 Purchase of trade goods = 0 Increase /Decrease in stock = 2,143.95
COGS = 56,076.09 (consumption +Purchase of trade goods- inc or dec stock)
Gross profit = 37,517.09 (Net sales – COGS) Gross Profit margin = (Gross Profit / Sales)*100
= 40.09%
YEARS 2019 2018 2017 2016 2015
GP RATIO 40.09% 36.84% 35.26% 32.03% 28.51% Table 4 Gross Profit Ratio
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GP RATIO 45.00% 40.09% 40.00% 36.84% 35.26% 35.00% 32.03% 30.00% 28.51% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 2019 2018 2017 2016 2015
Figure 9 Graph of Gross Profit Ratio
Interpretation of Gross Profit Ratio:- There is increase in the sales prices with the constant cost of goods sold GP ratio gradually increasing over the years is a positive sign Sales and COGS have also increased, which implies this is not just due to selling price increase. Volumes are rising and business is growing Gross Profit Ratio Higher in the year i.e 2019 40.09% ,Higher gross profit Ratio will be have these factors Sales price increase with Constant COGS Decrease in the COGS with constant Sales price Under valuation of opening stock or Overvaluation of closing stock Omission of Purchase invoices from accounts The Lowest Gross profit is in the year 2015 i.e 28.51% Fall in sale of profitable goods Fall in Price of unsold goods, Resulting lower closing stock Misappropriation ,theft of stock during the year Cost of Purchase might of have not gone up and the selling Price might have not risen in Proportion to the rising stock
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OPERATING PROFIT RATIO Operating profit ratio is a metrics which determines the proportion of entity’s revenue that is left after the meeting the cost of goods sold, administrative and office expenses and selling and distribution expense. An entity should strive to maintain a healthy operating margin to be able to meet its fixed expenses
Higher ratio represents better profitability of an entity and also the efficiency of the management in controlling its operating cost
YEARS 2019 2018 2017 2016 2015
Net Sales 93,593.18 81,835.14 70,415.92 71,539.61 60,464.41 Operating Income 26878.81 22672.2 18705.03 17144.28 12358.31 Table 5 Data for Operating Ratio
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Solution:-The Operating Margin is calculated (Mar 2019) as follows: Net Sales = 93,593.18 Operating Profit = 26878.81 Operating Profit ratio = (Operating Income/ Net sales) * 100 = (26878.81/ 93,593.18) *100 = 29%
Solution:-The Operating Margin is calculated (Mar 2018) as follows: Net Sales = 81,835.14 Operating Profit = 22672.2 Operating Profit ratio = (Operating Income/ Net sales) * 100 = (81,835.14/ 22672.2) *100 = 28%
Solution:-The Operating Margin is calculated (Mar 2017) as follows: Net Sales = 70,415.92 Operating Profit = 18705.03 Operating Profit ratio = (Operating Income/ Net sales) * 100 = (70,415.92/ 18705.03) *100 = 27%
Solution:-The Operating Margin is calculated (Mar 2016) as follows: Net Sales = 71,539.61 Operating Profit = 17144.28 Operating Profit ratio = (Operating Income/ Net sales) * 100 = (71,539.61/ 17144.28) *100 = 24%
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Solution:-The Operating Margin is calculated (Mar 2015) as follows: Net Sales = 60,464.41 Operating Profit = 12358.31 Operating Profit ratio = (Operating Income/ Net sales) * 100 = (60,464.41/ 12358.31) *100 = 20%
YEARS 2019 2018 2017 2016 2015
OPERATING MARGIN 29% 28% 27% 24% 20% Table 6 Operating margin
OPERATING MARGIN
35%
29% 30% 28% 27% 24% 25% 20% 20%
15%
10%
5%
0% 2019 2018 2017 2016 2015
Figure 10 Graph of Operating Margin
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Interpretation of Operating Margin: This is similar to Gross profit Operating ratio gradually increasing over the years is a positive sign The main reason for the increase could be the economies of scales Factors that are resulting to a higher margin year on year are higher Gross profit and Lower operating expenses. Here in JDL 2019’s margin is higher than any other years, which is betterment for the business and it helps in control of cash flows Also the low margin among is year 2015 i.e. 20%, usually the lower the margin it decreases the business.
NET PROFIT RATIO:
Net profit Ratio helps in determining the cushion available to the entity in the events of an increase in cost, drop in selling prices in the phase of recession or greater competition. It further indicates the extent to which management has been effective in reducing its operational expenses.
Net profit represents profit attributable to shareholders. It is computed after deducting the cost of doing business, depreciation, interest and other expenses from revenue to arrive at the Net profit figure.
YEARS 2019 2018 2017 2016 2015
Net Sales 93,853.18 82,336.78 70,747.44 71,720.81 60,814.08
PAT 1,520.90 3,617.98 2,807.97 1,748.74 68.44 Table 7 Data for Net profit Margin
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Solution:-The Net Profit Ratio is calculated (Mar 2019) as follows
Net Sales = 93,853.18
PAT = 1,520.90
Net Profit Ratio = (PAT / Net Sales) *100
= (1520.90 / 93,863.18)*100
= 1.62%
Solution:-The Net Profit Ratio is calculated (Mar 2018) as follows
Net Sales = 82,336.78
PAT = 3,617.98
Net Profit Ratio = (PAT / Net Sales) *100
= (3,617.98/ 82,336.78)*100
= 4.39%
Solution:-The Net Profit Ratio is calculated (Mar 2017) as follows
Net Sales = 70,747.44
PAT = 2,807.97
Net Profit Ratio = (PAT / Net Sales) *100
= (2,807.97/70,747.44)*100
= 3.97%
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Solution:-The Net Profit Ratio is calculated (Mar 2016) as follows
Net Sales = 71,720.81
PAT = 1,748.74
Net Profit Ratio = (PAT / Net Sales) *100
= (1,748.74 / 71,720.81)*100 = 2.44 %
Solution:-The Net Profit Ratio is calculated (Mar 2015) as follows
Net Sales = 60,814.08
PAT = 68.44
Net Profit Ratio = (PAT / Net Sales) *100
= (68.44 / 60,814.08)*100
= 0.11%
YEARS 2019 2018 2017 2016 2015
NET PROFIT MARGIN 1.62 4.39 3.97 2.44 0.11 Table 8 Net profit Margin
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NET PROFIT MARGIN
5.00 4.39 4.50 3.97 4.00 3.50
3.00 2.44 2.50 2.00 1.62 1.50
1.00
0.50 0.11 - 2019 2018 2017 2016 2015
Figure 11 Graph for Net Profit Margin
Interpretation of Net Margin: The net profit ratio is highest in the year 2018 i.e 4.39%. High ratio denotes the efficiency of management of the affairs of business. The net profit ratio is lowest in the year 2015 i.e 0.11% whereas indicates the poor performance in that year. Though there was good margin in year 2018 but in the previous year i.e 2019 there was approx.2-3% drop in the margin. JDL has to work on the aspect to improvise their OM
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RETURN ON CAPITAL EMPLOYED RATIO Return on capital employed helps in determining the efficiency with which an entity utilizes its capital investments towards revenue or earnings generation opportunities. It is basic profitability ratio and measure the relationship between Net profit before interest and tax and capital employed. It is expressed as a percentage of investment.
The main objective is to find out how efficiency that long term funds available with the entity have been used towards earnings generation. In other words, it helps measure a company’s efficiency in utilizing the capital employed in the business.
ROCE ratio Judges the overall performance of the concern. It measures how efficiently the source of the business are being used.
Higher the ratio the more the efficient is the management and utilization of the capital employed. It determines the earning capacity of the net assets of the business.
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YEARS 2019 2018 2017 2016 2015 PAT 1,520.90 3,617.98 2,807.97 1,748.74 68.44 EBT 5,908.11 6,020.82 4,432.60 3,128.26 60.50 Finance Cost 2,681.93 2,573.92 2,423.29 2,534.37 2,780.90 EBIT 8,590.04 8,594.74 6,855.89 5,662.63 2,841.40 TOTAL ASSETS 69678.3 57628.9 52437 56017.5 47362.4 Current Liabilities 33306.8 30704.9 26873.9 30963.5 23236.1 Table 9 Data for Return on Capital Employed Solution:-The Return on Capital Employed is calculated (Mar 2019) as follows
Net Profit after Tax = 1,520.90
Total Assets = 69678.3
Current Liabilities = 33306.8
Net Capital Employed = Total Assets – Current liabilities
= 69678.3 – 33306.8
= 36371.51
Return on Capital Employed = (1590.90 / 36371.51)*100
= 4.18%
Solution:-The Return on Capital Employed is calculated (Mar 2018) as follows
Net Profit after Tax = 3,617.98
Total Assets = 57628.93
Current Liabilities = 30704.91
Net Capital Employed = Total Assets – Current liabilities
= 57628.93– 30704.91
= 36371.51
Return on Capital Employed = (3,617.98/ 26924.02)*100
= 13.44%
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Solution:-The Return on Capital Employed is calculated (Mar 2017) as follows
Net Profit after Tax = 2,807.97
Total Assets = 52436.95
Current Liabilities = 26873.87
Net Capital Employed = Total Assets – Current liabilities
= 52436.95– 26873.87
= 25563.08
Return on Capital Employed = (2,807.97/ 25563.08)*100
= 10.98%
Solution:-The Return on Capital Employed is calculated (Mar 2016) as follows
Net Profit after Tax = 1,748.74
Total Assets = 56017.46
Current Liabilities = 30963.53
Net Capital Employed = Total Assets – Current liabilities
= 56017.46 – 30963.53
= 25053.93
Return on Capital Employed = (1748.74 / 25053.93)*100
= 6.98%
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Solution:-The Return on Capital Employed is calculated (Mar 2015) as follows
Net Profit after Tax = 68.44
Total Assets = 47362.4
Current Liabilities = 23236.1
Net Capital Employed = Total Assets – Current liabilities
= 47362.4 – 23236.1
= 24126.29
Return on Capital Employed = (68.44 / 24126.29)*100
= 0.28%
YEARS 2019 2018 2017 2016 2015
Return on Capital Employed (%) 4.18 13.44 10.98 6.98 0.28 Table 10 Return on Capital Employed
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Return on Capital Employed(%)
16.00
14.00 13.44
12.00 10.98
10.00
8.00 6.98
6.00 4.18 4.00
2.00 0.28 - 2019 2018 2017 2016 2015
Figure 12 Graph for Return on Capital Employed
Interpretation of Return on Capital Employed Ratio: The return on capital employed ratio is the highest in the year 2018 i.e 13.44% Management uses this ratio for various financial decisions. It is a ratio of overall profitability and a higher ratio The return on capital employed ratio is the lowest in the year 2015 i.e 0.28% it is the minimum profitability This ratio measures the efficiency which the investment made by shareholders and creditors of the business in the firm Company should maintain the consistency in the capital structure
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RETURN ON ASSET This Ratio helps to determine the entity’s profitability in relation to its total assets. Hence, the computation establishes a relationship between Net profit before Interest and Tax and Total Assets, and is expressed as a percentage.
The objective of this ratio is to find out how efficiently the assets of entity have been used by the management for earning profits. It helps in measuring profitability from a given level of investment.
This ratio further highlights the fact that management is primarily bestowed with the responsibility of making wise choices of efficiency allocating capital resources towards profitable opportunities
YEARS 2019 2018 2017 2016 2015 Revenue 93,853.18 82,336.78 70,747.44 71,720.81 60,814.08 TOTAL ASSETS 69678.33 57628.93 52436.95 56017.46 47362.38 Table 11 Data for Return on Assets
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Solution:-The Return on Asset is calculated (Mar 2019) as follows
Net Profit = 93,853.18
Total Assets = 69,678.33
Return on Assets = Net Profit / Total Assets
= 93853.18 / 69678.33
= 1.35
Solution:-The Return on Asset is calculated (Mar 2018) as follows
Net Profit = 82,336.78 Total Assets = 57628.93 Return on Assets = Net Profit / Total Assets
= 82,336.78 / 57628.93 = 1.43
Solution:-The Return on Asset is calculated (Mar 2017) as follows
Net Profit = 70,747.44
Total Assets = 52436.95
Return on Assets = Net Profit / Total Assets
= 70774.44 / 52436.95
= 1.35
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Solution:-The Return on Asset is calculated (Mar 2016) as follows
Net Profit = 71,720.81
Total Assets = 56017.46
Return on Assets = Net Profit / Total Assets
= 71,720 / 56,017.46
= 1.28
Solution:-The Return on Asset is calculated (Mar 2015) as follows
Net Profit = 60,814.08
Total Assets = 47362.38
Return on Assets = Net Profit / Total Assets
= 60,814.08/ 47362.38
= 1.28
YEARS 2019 2018 2017 2016 2015
TOTAL ASSET TURNOVER 1.35 1.43 1.35 1.28 1.28 Table 12 Total Asset Turnover Ratio
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TOTAL ASSET TURNOVER 1.45 1.43
1.40
1.35 1.35 1.35
1.30 1.28 1.28
1.25
1.20 2019 2018 2017 2016 2015
Figure 13 Graph for Total Asset Turnover Ratio
Interpretation of Total Asset Turnover: Return on Assets indicates the number of return value earned on the each value of asset In Simple words it’s the ratio that worth $ of assets generated that times of worth of revenue The highest year among last five years is in the year 2018 i.e 1.43, but the analysis should be taken under the same industry type. If the ratio of Asset turnover is more than 1,it is good for the company It simply means company is able to generate enough revenue for itself
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FIXED ASSETS TURNOVERRATIO
It establishes a relationship between Net Sales and the Fixed Assets. The ratio is calculated to determine the efficiency with which the fixed assets held by the entity are being utilized towards revenue generation. In other words, fixed asset turnover ratio measures an entity’s ability to generate net sales from fixed-assets investments – Specifically property, plant and equipment – net of depreciation
Fixed Assets turnover ratio could be affected by factors other than entity’s efficiency. An entity may report lower fixed asset turnover ratio, if its assets are newer (therefore, are charged less depreciation) and are carried at a higher carrying amount in the books)
Fixed Assets Turnover Ratio = Net Sales / Net operating Fixed Assets
YEARS 2019 2018 2017 2016 2015 Revenue 93,593.18 81,835.14 70,415.92 71,539.61 60,464.41 T FA 22028.02 27777.25 27461.3 25247.66 24742.6 Long Term Loans And Advances 940.87 2,158.00 1,967.87 2,376.35 2,142.25
Other Non-Current Assets 147.09 209.10 217.72 125.76 318.75
Net Operating Fixed Assets 20,940.06 25,410.15 25,275.71 22,745.55 22,281.60 Table 13 Data for Fixed Asset Turnover Ratio
{Net Operating FA = Gross Operating Fixed Assets - Depreciation}
Solution:-The Return on Fixed Asset is calculated (Mar 2019) as follows
Net Sales = 93,593.18
Net Operating Fixed Assets = 20,940.06
Fixed Assets Turnover Ratio = Net Sales / Net operating Fixed Assets
= 93,593.18 / 20940.06
= 4.47
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Solution:-The Return on Fixed Asset is calculated (Mar 2018) as follows
Net Sales = 81,835.14
Net Operating Fixed Assets = 25,410.15
Fixed Assets Turnover Ratio = Net Sales / Net operating Fixed Assets
= 81,835.14/ 25,410.15
= 3.22
Solution:-The Return on Fixed Asset is calculated (Mar 2017) as follows
Net Sales = 70,415.92
Net Operating Fixed Assets = 25,275.71
Fixed Assets Turnover Ratio = Net Sales / Net operating Fixed Assets
= 70,415.92/ 25,275.71
= 2.79
Solution:-The Return on Fixed Asset is calculated (Mar 2016) as follows
Net Sales = 71,539.61
Net Operating Fixed Assets = 22,745.55
Fixed Assets Turnover Ratio = Net Sales / Net operating Fixed Assets
= 71,539.61 / 22,745.55
= 3.15
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Solution:-The Return on Fixed Asset is calculated (Mar 2019) as follows
Net Sales = 60,464.41 Net Operating Fixed Assets = 22,281.60
Fixed Assets Turnover Ratio = Net Sales / Net operating Fixed Assets
= 60,464.41/ 22,281.60 = 2.71
FIXED ASSTE TURNOVER 5.00 4.47 4.50 4.00 3.50 3.22 3.15 3.00 2.79 2.71 2.50 2.00 1.50 1.00 0.50 - 2019 2018 2017 2016 2015
Figure 14 Graph for Fixed Asset Ratio
Interpretation of Fixed Asset turnover
A higher fixed asset turnover ratio shows that the entity has been more effective in using the investment in fixed assets to generate revenues It is good sign for JDL because we can see the growth in every year which is a healthy indicator The highest turnover among the years is of 2019 i.e. 4.47 , we are in 4.47 times of that fixed assets In the year 2017 shows us the inefficiency , capital intensive business environment
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Here are the few ratios which was published by John Distilleries Pvt Ltd
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Few ratios are being compared with the same group of industry to know analyze the position of the company with other. Namely: John Distilleries, Radico Khaitan, United Breweries, and GM Breweries
CURRENT RATIO 2.00 1.80 1.60 1.40 1.20 1.00 0.80 0.60 0.40 0.20 - 2015 2016 2017 2018 2019 John Distilleries 0.97 0.99 0.93 0.97 1.43 Radico Khaitan 1.74 1.87 1.69 1.55 1.35 United Breweries 1.15 1.32 1.27 1.21 1.15
GM Breweries 0.41 0.27 0.48 0.49 1.33
John Distilleries Radico Khaitan United Breweries GM Breweries
Figure 15 Comparison of Current Ratio Graph
Interpretation of Current ratio
High Ratio indicates that the firm has liquidation and they are able to, efficient enough to pay its current obligations in time whenever they are due. Low Ratio indicates that the company is not in good position to meet current obligations from current assets resources. As per the thumb rule of current ratio 2:1 current assets twice than the current liabilities is considered to be satisfactory. Compared to all other companies, John Distillers is doing good and in a safer condition to liquidate. Still the company should aims towards making ratio to 2:1 In the case of Radico Khaitan, There is abnormal maintenance of assets vs liabilities the ratio has been decreasing which is not a good sign for the company.
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QUICK RATIO
1.80 1.60 1.40 1.20
1.00 0.80 0.60 0.40
0.20 - 2015 2016 2017 2018 2019 John Distilleries 0.22 0.23 0.20 0.32 0.35 Radico Khaitan 1.43 1.56 1.40 1.30 1.10 United Breweries 0.88 0.96 0.92 0.83 0.80 GM Breweries 0.27 0.17 0.31 0.26 1.05 John Distilleries Radico Khaitan United Breweries GM Breweries Figure 16 Comparison of Quick Ratio Graph Interpretation of Quick Ratio: Quick Ratio of 1:1 is considered to be a satisfactory ratio for companies. The rationale behind is that the every rupee of current liability a rupee of current asset seems satisfactory Expect from the Radico Khaitan and GM breweries no other companies have met the basic rule of the Quick ratio. Infact Radico and GM has the good ability to liquidate or arrange the funds in short period of time due to the surplus they are maintaining Every other company seems fine and they are improving but expect John Distillers. John Distillers will not be to mobilize funds in shorter duration, hence the company is at risk in default
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NET PROFIT RATIO
18.00 16.00 14.00
12.00 10.00 8.00
6.00 4.00 2.00
- 2015 2016 2017 2018 2019
John Distilleries 1.62 4.39 3.97 2.44 0.11 Radico Khaitan 5.80 6.35 4.90 4.54 4.98 United Breweries 3.66 4.80 5.94 6.20 6.45 GM Breweries 5.38 4.83 7.46 6.06 16.21
John Distilleries Radico Khaitan United Breweries GM Breweries
Figure 17 Comparison of Net Profit Ratio Interpretation of Net Profit Ratio: This ratio indicates the extent to which management has been effective in reducing its operational expense. Higher the net profit ration better the business. Also higher the ratio, greater the capacity of an entity to withstand the volatile economic conditions prevailing the market. Only GM Breweries has good progress every financial year. And also in year 2019 have made great progress. John Distillers has not performed well in 2019.There is sudden drop in the margin which is not all good indicator.
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RETURN ON ASSET RATIO 30.00
25.00
20.00
15.00
10.00
5.00
- 2015 2016 2017 2018 2019 John Distilleries 0.31 7.69 11.11 14.24 7.26 Radico Khaitan 3.83 4.28 3.53 3.24 3.58 United Breweries 5.74 6.13 8.28 10.18 11.70 GM Breweries 8.20 7.57 9.76 8.02 25.24
John Distilleries Radico Khaitan United Breweries GM Breweries
Figure 18 Comparison on Return on Asset Ratio
Interpretation of Return on Asset Ratio:
This is the comaprision of netsales and the assets of the firm. It determines the ability of the entity to generate profit with its total assets. Higher the ratio, the better it is for the stakeholders as it suggests that the firm is earning more money on the investment. Here Let us consider John Distillers as the base to compare with the other companies ,overall GM breweries are doing great in the aspects of enough revenue generation. Although the average growth of John Distillers is pretty good when compared to There is a Decrease of 50% than what it was in year 2019 for John Distillers
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CHAPTER 5
FINDINGS
SUGGESTIONS
CONCLUSION
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FINDINGS From my obeservation and analyis of the ratios of the company I could point out the few findings that could be helpful for further improvising and betterment on the financial aspects and opertaion of the company effectively and effieciently.
For Liquidity Ratios in brief :
As mentioned earlier in the intrepretation of the data, ideal requirement for current ratio is have 2:1 which is not followed in John Distillers. Clearly we can see from the graph above that not these 5 years the company have reached the requiremnt critiea. Although we have more current assets than current liablites,which shows the comapany is in able position to pay its obligated liablites.
Quick ratio of company is not doing that well, It is always better to have 1:1 senario in the aspects of quick ratio.This shows how quickly a company can liquidate its current liablities.In this company ,We cannot say that it is avery good growth but to be noted is gradaually company is moving towards maintianing its ratio. As per current senario quick ratio of the company is not satisified.
For Profitablity ratios in brief :
Since 2015 ,when we observe the time line from the year 2015 to FY 2019.There is always a increase in the profitability margin of 2-3% every year. The main plain reason for this is the increase in the sales every year ,also there in increase in the stock maintaince of the company.Only in the year 2015 there was poor maitaince of closing stock,infact the figures are in numbers.
Due the increase in other expenses and Finance costs in the company the it is slighty affecting the net profit earned in each year. As the expenses lead to vary of net profit of the comapany.Lesser the proportion ,lesser is the limit of an element to withstand the voliatile financial conditions prevailaing the market.The oprating margin is doing pretty well.
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There is a huge impact on the Capital employed in the company,There is uneven distribution impact in the firm irrespective of the last 5 years. The lowest was in the year 2015 where is it is nowhere to minimum eligiblity.Later the compnay has piked up the capital investement,but unfourtunatenly it clearly shows that in the year 2019 the company has less efficiency in the management in utilising the funds
For Activity Ratio in brief:
The high fixed asset ratio shows that the entity has been more effective in using the investment in fixed assets to generate revenue to generate reveneue.The company has good ratio mainatined
Also when we look into the collection cycle ,it represents how quick the company collects its credit sales.The lesser the days collection period it is better for the company. Here in the year 2019 there is we are at the border level. Comoany should maintain the average of 45 days more than that there wil be risk for the company creting PDD in the books .
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SUGGESTIONS
o The company should focus on improvising the quick ratio as the quick ratio is very poor of the company. The quick ratio can be quickly improved by paying off all the current bills and at the same time they have to increase the sales so that the company has more liquidity i.e cash in hand
o In the event that the organization has any useless assets, it is smarter to sell them and have better liquidity. Decrease of such assets would bring about better money position and along these lines improvement in the numerator of brisk proportion.
o Also the collection period of the company is high.Reduction of collecting period will have a direct impact on the quick ratio of the firm.Improvement in the better collection period will result in better performance of current assets.The terms of the payment of the compnany to be made clear to maintain the current period as low
o The organization's gainfulness is steady on individual level just as industry wide. It is proposed to guarantee support of this solidness or gainfulness. Likewise the organization should find a way to additionally improve productivity
o Paying off the current liablities like early payments and paying off loans in time will make impact in the quick ratio,Lower the current laiablities ,better will be the ratio in terms of quick ratio
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o Conversion on short term debts into long term debts helps in the low payment of installments and the less intrest rate on the debts
o Also Company should look into the overhead expenses,thorough ananlyzation of expenses will help to cut off unnecessary expenses.
CONCLUSION
The Project of “ Fundamental Ratio Analysis “of JOHN DISTILLERS PVT LTD is a very breif knowledge to understand how to analyze the fiancial position of the company through ratio ananlysis.This study undertaken have helped to point out the clear problems of the company.
Though the company is doing good and performing better,as per my obeservationas have pointed out the few major findings of the problem. The firm should mainly look into the improvising the quick ratio and collection period , paying off early lialblities and ways to increase the sale of the company.
Also company should focus on the competitors and try to implement the necesssary measures to increase the productivity and effeciency in the company.Once the company reaches it break even point it should focus on the expanding its business and outletting many branches and the main strategy of the firm to increaing the sales by good marketing stragtegy , creating brand loyalty.
Overall company financial perfomance is not bad ,it is doing good but can improve in many aspects to get good yield in margin
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BIBILOGRAPHY
Financial and Management account by Pauline Weetman
KPMG Course for Accounting Professionals – Voulme 1
Website
www.google.com www.moneycontrol.com www.jdl.in www.accountingtools.com www.investopidea.com https://en.wikipedia.org/wiki/John_Distilleries
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ANNEXURE
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BALANCE SHEET OF JOHN DISTILLERIES PRIVATE LIMITED 31-Mar 31-Mar 31-Mar 31-Mar 31-Mar PARTICULARS 2019 2018 2017 2016 2015 EQUITY AND LIABLITIES SHAREHOLDER'S FUND Share Capital 10,281.24 10,877.32 10,877.32 10,877.32 10,388.32 Reserves and Surplus 12,819.00 11,298.49 8,180.60 5,372.72 3,624.07 Money Received against Share warrants - - - - - Share Application Money Pending Allotment - - - - - 23,100.24 22,175.81 19,057.92 16,250.04 14,012.39
NON - CURRENT LIABLITIES Long Term Borrowings 8,315.95 2,131.14 4,564.64 7,146.88 9,016.69 Deferred Tax Libalities 2,679.94 2,109.64 1,616.29 1,149.84 404.31 Other Long Term Liablities 1,949.07 309.14 109.59 318.85 582.01 Long Term Provisions 325.98 198.29 214.63 188.51 110.89 13,270.94 4,748.21 6,505.15 8,804.08 10,113.90 CURRENT LIABLITIES Short Term Borrowings 18,271.61 16,605.78 16,523.30 13,663.64 8,150.46 Trade Payables 3,417.92 2,833.41 2,461.12 2,624.50 3,979.08 Other Current Liabilities 11,001.42 11,151.05 7,877.64 14,129.39 11,030.32 Short Term Provisions 615.87 114.67 11.81 546 76.23 33,306.82 30,704.91 26,873.87 30,963.53 23,236.09 TOTAL EQUITY AND LIABLITIES 69,678.33 57,628.93 52,436.95 56,017.46 47,362.38 ASSETS NON - CURRENT ASSETS Fixed Assets Tangible Assets 20,676.55 24,735.71 24,808.29 22,471.65 21,924.67 Intangible Assets 39.66 65.22 167.79 28.58 11.66 Capital Work-In-Progress 223.85 592.23 299.63 129.18 269.07 Intangible Assets Under Development - 16.99 - 109.85 69.91 Non-Current Investments - - - 6.29 6.29 Deffered Tax Assets - - - - - Long Term Loans And Advances 940.87 2,158.00 1,967.87 2,376.35 2,142.25 Other Non-Current Assets 147.09 209.10 217.72 125.76 318.75 22,028.02 27,777.25 27,461.30 25,247.66 24,742.60 CURRENT ASSETS Current Investments - - 7.22 0.93 0.93 Inventories 28,147.56 18,248.11 17,397.04 17,107.08 12,112.93 Trade Receivables 11,707.98 9,830.05 5,167.04 6,389.36 4,809.55 Cash and Cash Equivalents 94.99 73.53 106.85 861.18 269.69 Short Term Loans and Advances 1,598.47 1,491.34 2,178.59 6,021.19 4,618.49 Other Current Assets 6,101.31 208.65 118.92 340.07 808.19 47,650.31 29,851.68 24,975.66 30,719.81 22,619.78 TOTAL ASSETS 69,678.33 57,628.93 52,436.95 56,017.46 47,362.38 Table 14 Balance Sheet of JDL
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IN CR BALANCE SHEET OF RADICO KHAITAN LIMITED 31-Mar 31-Mar 31-Mar 31-Mar 31-Mar PARTICULARS 2019 2018 2017 2016 2015 EQUITY AND LIABLITIES SHAREHOLDER'S FUND Share Capital 26.61 26.61 26.61 26.58 26.54 Reserves and Surplus 877.86 802.68 754.46 701.61 668.72 Money Received against Share warrants ------904.47 829.29 781.07 728.19 695.26 NON - CURRENT LIABLITIES Long Term Borrowings 197.58 326.02 423.58 413.98 338.35 Deferred Tax Libalities 74.35 71.52 69.53 58.83 56.33 Other Long Term Liablities 1.14 0.71 1.22 0.04 1.83 Long Term Provisions 7.18 5.89 5.22 4.34 4.02 280.25 404.14 499.55 477.19 400.53 CURRENT LIABLITIES Short Term Borrowings 509.93 412.41 405.55 305.43 277.71 Trade Payables 149.01 125.54 127.56 117.25 118.73 Other Current Liabilities 255.37 274.40 163.34 154.00 151.61 Short Term Provisions 46.46 41.93 38.64 20.99 15.28 960.77 854.28 735.09 597.67 563.33 TOTAL EQUITY AND LIABLITIES 2,145.50 2,087.69 2,015.71 1,803.05 1,659.14 ASSETS NON - CURRENT ASSETS Fixed Assets Tangible Assets 550.55 541.97 530.68 486.60 458.03 Intangible Assets 26.53 30.78 39.82 42.84 44.18 Capital Work-In-Progress 1.91 0.80 8.12 5.33 4.84 Intangible Assets Under Development - - - - - Non-Current Investments 48.06 48.06 58.37 58.37 58.38 Deffered Tax Assets - - - - - Long Term Loans And Advances 224.23 143.86 136.52 88.98 85.40 Other Non-Current Assets 1.95 2.23 2.02 1.49 0.72 853.23 767.70 775.53 683.61 651.55 CURRENT ASSETS Current Investments 50.00 50.00 50.00 50.22 52.96 Inventories 232.70 213.03 210.31 184.95 177.45 Trade Receivables 548.94 477.81 523.32 435.38 347.79 Cash and Cash Equivalents 11.39 10.33 15.29 16.00 21.04 Short Term Loans and Advances 424.33 514.09 403.48 399.26 347.27 Other Current Assets 25.02 54.73 37.79 33.64 34.23 1,292.38 1,319.99 1,240.19 1,119.45 980.74 TOTAL ASSETS 2,145.50 2,087.69 2,015.71 1,803.05 1,659.14 Table 15 Balance Sheet of Radico Khaitan Ltd
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IN CR BALANCE SHEET OF UNITED BREWERIES 31-Mar 31-Mar 31-Mar 31-Mar 31-Mar PARTICULARS 2019 2018 2017 2016 2015 Sources Of Funds Share Capital 26.44 26.44 100.51 100.51 100.51 Reserves and Surplus 2,081.16 1,823.19 1,605.35 1,410.18 1,264.63 Money Received against Share warrants ------Net Worth 2,107.60 1,849.63 1,705.86 1,510.69 1,365.14 LIABLITIES Secured Loans 321.12 510.89 764.83 1,072.36 743.30 Unsecured Loans 89.98 188.25 251.62 227.77 95.00 Total Debt 411.10 699.14 1,016.45 1,300.13 838.30 TOTAL EQUITY AND LIABLITIES 2,518.70 2,548.77 2,722.31 2,810.82 2,203.44 Application of Funds
Net Block 1,797.36 1,810.84 1,606.92 1,593.99 1,218.69 Capital Work in Progress 60.84 90.16 82.27 113.98 207.35 Investments 25.47 25.47 25.47 25.47 25.47 Inventories 605.10 558.38 543.28 512.63 399.88 Sundry Debtors 1,143.03 964.28 958.60 813.30 699.97 Cash and Bank Balance 11.34 10.76 142.48 232.77 177.23 Total Current Assets 1,759.47 1,533.42 1,644.36 1,558.70 1,277.08 Loans and Advances 486.88 420.74 536.78 446.52 563.99 Total CA, Loans & Advances 2,246.35 1,954.16 2,181.14 2,005.22 1,841.07 Current Liabilities 1,487.26 1,206.73 1,075.95 845.90 1,037.95 Provisions 124.06 0.10 97.54 81.94 51.19 Total CL & Provisions 1,611.32 9.64 1,173.49 927.84 1,089.14 Net Current Assets 635.03 2.26 1,007.65 1,077.38 751.93 TOTAL ASSETS 2,518.70 2,548.77 2,722.31 2,810.82 2,203.44 Table 16 Balance Sheet of United Breweries
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IN CR BALANCE SHEET OF GM BREWERIES 31-Mar 31-Mar 31-Mar 31-Mar 31-Mar PARTICULARS 2019 2018 2017 2016 2015 EQUITY AND LIABLITIES Sources Of Funds Share Capital 11.71 11.71 9.37 9.37 9.37 Reserves and Surplus 169.28 114.49 105.14 86.36 76.31 Money Received against Share warrants ------180.99 126.20 114.51 95.73 85.68 NON - CURRENT LIABLITIES Long Term Borrowings - 19.17 23.18 5.42 0.22 Deferred Tax Libalities 4.50 4.62 4.54 3.20 2.87 Other Long Term Liablities - - - - - Long Term Provisions - - - - - 4.50 23.79 27.72 8.62 3.09 CURRENT LIABLITIES Short Term Borrowings 0.00 7.07 0.06 17.23 23.33 Trade Payables 3.75 4.08 4.15 7.77 5.55 Other Current Liabilities 38.28 41.15 47.14 26.59 27.77 Short Term Provisions 3.52 29.73 27.03 27.78 23.08 45.55 82.03 78.38 79.37 79.73 TOTAL EQUITY AND LIABLITIES 231.03 232.01 220.61 183.72 168.50 ASSETS NON - CURRENT ASSETS Fixed Assets Tangible Assets 78.64 85.92 95.46 84.77 83.01 Intangible Assets - 0.01 0.08 0.08 - Capital Work-In-Progress 2.12 0.77 6.76 42.80 29.39 Intangible Assets Under Development - - - - - Non-Current Investments 88.18 76.75 48.97 0.02 0.02 Deffered Tax Assets - - - - - Long Term Loans And Advances 1.37 28.71 31.58 34.36 23.38 Other Non-Current Assets - - - - - 170.31 192.16 182.85 162.03 135.80 CURRENT ASSETS Current Investments - - - - - Inventories 13.05 18.94 13.76 7.87 10.81 Trade Receivables 0.23 0.10 0.20 0.29 0.25 Cash and Cash Equivalents 34.05 9.64 5.36 4.02 12.02 Short Term Loans and Advances 7.07 2.26 1.39 1.01 1.91 Other Current Assets 6.31 8.92 17.04 8.50 7.70 60.71 39.86 37.75 21.69 32.69 TOTAL ASSETS 231.03 232.01 220.61 183.72 168.50 Table 17 Balance Sheet of GM Breweries
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