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8/8/2019 12 - Ishan Aggarwal - Shreyans Industries Ltd.
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Analysis of Shreyans IndustriesBalance Sheet ------------------- in Rs. Cr. -------------------
Mar '05 Mar '06 Mar '07 Mar '08 Mar '09Sources Of Funds
Total Share Capital 11.07 11.07 11.07 11.07 11.07Equity Share Capital 11.07 11.07 11.07 11.07 11.07Share Application Money 0 0 0 1.64 8.94Preference Share Capital 0 0 0 0 0Reserves -8.79 -0.84 5.79 17.84 35.96Revaluation Reserves 0 0 0 0 0Networth 2.28 10.23 16.86 30.55 55.97Secured Loans 80.07 69.42 67.63 71.5 61.77Unsecured Loans 3.82 2.71 2.62 2.55 3.01Total Debt 83.89 72.13 70.25 74.05 64.78Total Liabilities 86.17 82.36 87.11 104.6 120.75Application Of Funds
Gross Block 117.42 119.75 127.48 124.31 169.82Less: Accum. Depreciatio 51.62 56.57 62.18 62.43 67.21Net Block 65.8 63.18 65.3 61.88 102.61Capital Work in Progress 1.98 2.65 9.63 21.95 4.26Investments 0.55 0.2 0.01 0.01 2.97Inventories 11.47 9.12 15.28 18.27 21.16Sundry Debtors 28.43 26.23 24.51 28.14 20.41Cash and Bank Balance 1.39 2.31 1.35 3.23 1.59
Total Current Assets 41.29 37.66 41.14 49.64 43.16Loans and Advances 8.72 10.55 20.28 14.54 22.24
Fixed Deposits 0.8 0.63 0.67 1.98 0.8 Total CA, Loans & Advan 50.81 48.84 62.09 66.16 66.2Deffered Credit 0 0 0 0 0Current Liabilities 33.06 32.2 49.4 46.61 48.97Provisions 0.03 0.32 1.2 0.45 6.33
Total CL & Provisions 33.09 32.52 50.6 47.06 55.3Net Current Assets 17.72 16.32 11.49 19.1 10.9Miscellaneous Expenses 0.15 0 0.7 1.68 0Total Assets 86.2 82.35 87.13 104.62 120.74Contingent Liabilities 3.01 9.46 10.14 7.17 1.1Book Value (Rs) 2.07 9.24 15.23 26.11 42.47
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Ltd.
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Analysis of Shreyans Industries LProfit & Loss account ------------------- in Rs. Cr. -------------------
Mar '05 Mar '06 Mar '07 Mar '08 Mar '09IncomeSales Turnover 158.32 193.31 214.44 238.69 269.61Excise Duty 14.53 14.49 16.08 20.11 11.12Net Sales 143.79 178.82 198.36 218.58 258.49Other Income -0.11 -0.3 0.4 -1.92 -0.65Stock Adjustments -0.88 -0.83 0.82 0.89 -0.87Total Income 142.8 177.69 199.58 217.55 256.97ExpenditureRaw Materials 70.7 85.2 96.72 102.43 112.73Power & Fuel Cost 33.74 40.15 47.6 51.49 63.05Employee Cost 13.88 13.87 15.19 18.02 19.27Other Manufacturing Expen 5.46 5.95 7.21 7.61 9.26Selling and Admin Expenses 9.39 7.48 6.75 6.26 11.66
Miscellaneous Expenses 1.01 1.17 1.18 1.07 1.31Preoperative Exp Capitalise 0 0 0 0 0
Total Expenses 134.18 153.82 174.65 186.88 217.28Operating Profit 8.73 24.17 24.53 32.59 40.34PBDIT 8.62 23.87 24.93 30.67 39.69Interest 9.21 8.33 7.48 7.29 6.67PBDT -0.59 15.54 17.45 23.38 33.02Depreciation 5.21 5.65 5.84 5.89 6.88Other Written Off 0.15 0.15 0 0 0Profit Before Tax -5.95 9.74 11.61 17.49 26.14
Extra-ordinary items 1.3 1.02 0.26 0.47 0.21PBT (Post Extra-ord Items) -4.65 10.76 11.87 17.96 26.35
Tax 0.02 2.83 5.26 5.9 7.83Reported Net Profit -4.67 7.95 6.63 12.05 18.12
Total Value Addition 63.48 68.63 77.92 84.45 104.55Preference Dividend 0 0 0 0 0Equity Dividend 0 0 0 0 0Corporate Dividend Tax 0 0 0 0 0Per share data (annualised)Shares in issue (lakhs) 110.75 110.75 110.75 110.75 110.75Earning Per Share (Rs) -4.22 7.18 5.98 10.88 16.36Equity Dividend (%) 0 0 0 0 0Book Value (Rs) 2.07 9.24 15.23 26.11 42.47
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d.
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Analysis of ShreyansRatio Analysis
Liquidity RatiosCurrent Ratio
Quick RatioSolvency RatiosDebt-Equity RatioLiabilities To Equity RatioInterest Coverage RatioDebt-Asset Ratio
Efficiency RatiosInventory TurnoverDebtor TurnoverAverage Collection PeriodFixed Assets Turnover
Total Assets Turnover
Profitability RatiosGross Profit MarginNet Profit MarginReturn on AssetsBasic Earning PowerReturn on Equity
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Industries Ltd.Formulae Mar '05 Mar '06 Mar '07
Current Assets/Current Liabilities 1.54 1.5 1.23
(Current Assets - Inventories)/Current Liabilities 1.19 1.22 0.93
Debt/Equity 36.79 7.05 4.17 Total Liabilities/Equity 51.31 10.23 7.17PBIT/Interest Expense 0.35 2.17 2.55Debt/Assets 1.65 1.48 1.13
COGS/Avg Inventory 15.02 14.25Net Sales/Avg. Sundry Debtors 6.54 7.82365/Debtor Turnover 55.78 46.68Net Sales/Avg Net Fixed Assets 2.68 2.82Net Sales/ Avg Total Assets 2.12 2.34
Gross Profit/ Net Sales 0.06 0.14 0.12Net Profit/ Net Sales -0.03 0.04 0.03PAT/Avg Total Assets 0.09 0.08PBIT/Avg Total Assets 0.21 0.23Equity Earnings/Avg Equity 1.27 0.49
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Mar '08 Mar '09
1.41 1.2
1.02 0.81
2.42 1.163.96 2.15
3.4 4.921.12 0.98
11.09 11.078.3 10.65
43.96 34.282.75 2.712.28 2.29
0.15 0.160.06 0.070.13 0.160.26 0.290.51 0.42
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CommentsLiquidity Ratios Solvency Ratios
Gross Profit Margin=Gross Profit/ Net SalesNet Profit Margin=Net Profit/ Net SalesMar'05
Mar'06
Mar'07
Mar'08
Mar'09
1
1
1
1
1
2
2
Liquidity RatiosCurrentRatioQuickRatio
Mar'05
Mar'06
Mar'07
Mar'08
Mar'09
10
20
30
40
50
60
Solvency RatiosDebt-EquityRatioLiabilities ToEquityRatio
InterestCoverage RatioDebt-AssetRatio
Decreasing Current Ratio isindicating that the company'sability to meet its current liabilitieswith current assets is decreasing.
This is a bad news for its short-term creditors.Decreasing Quick Ratio isindicating that company's ability tomeet its current liabilities withmore liquid assets is alsodecreasing which is also a badnews.
Decreasing Debt-Equity Ratio isindicating that riskiness forcreditors is decreasing. This is agood news for the company.Decreasing Liability to Equity Ratiois a good indicator for the companyas it supports decreasing debt toequity ratio.Increasing Interest coverageRatio is
indicating that the company isbecoming increasingly secure forthe creditors who will receive theinterest charges in time. So, thecompany has sufficient income tocover its interest requirements asof 2009.Decreasing Debt Asset Ratio is
indicating that the support of borrowed funds for firm's asset isdecreasing. This is good for the
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company as the company'sdependence on borrowings isdecreasing.
Conclusion : Thus, after analysing the company's financial reports through various rathe firm to meet its short-term obligations when they fall due is decreasi
its asset management is also becoming efficient and the performance of successis is improving steadily through the years. Thus overall, the com
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Efficiency Ratios Profitability Ratios
Mar'05
Mar'06
Mar'07
Mar'08
Mar'09
10
20
30
40
50
60
EfficiencyRatiosInventory
TurnoverDebtor
TurnoverAverageCollectionPeriodFixedAssets
Turnover TotalAssets
Turnover
Mar'05
Mar'06
Mar'07
Mar'08
'
1
1
1
1
1
Decreasing Inventory Turnover is indicatingthat the efficiency of inventory managementof firm is decreasing which is bad for thecompany.Increasing Debtor Turnover is a goodindicator of the company's ability to collectcredit from the customers in a promptmanner. So, company is having a bettermanagement of receivables.Decreasing Avg Collection period is good forthe company as it will now have less DaysSales Outstanding which have been reducedfrom 55 in 2005 to 34 in 2009.Fixed Asset Turnover has remained constant
around 2.7 indicating that the firm has highdegree of efficiency in asset utilization i.e.sales per Rupee of investment is around Rs.2.7.A constant Total Asset Turnover of around 2.3
Increased Gross Profit Margin oindicating the increased efficienas well as pricing of the companfor the company.Increased Net Profit Margin oveindicating the increased efficienproduction, administration, sellipricing and tax management of
This is good for the company ascushion available to the compaReturn on Assets has also increyears which indicates that the oprofitability of the firm has incregood for the company.Basic Earning Power has also in
over the years indicating an imoperating performance of the cReturn on Equity has fallen sharyears due to a sharp increase in
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overall assets very efficiently.
years. So, this decrease can't bROE has been higher than ROAyears so earnings per rupee of funds has been more than thatis good.
ios , it can be safely said that the ability of ng, firm's long-term solvency is improving,
the company in terms of operatingany is becoming more efficient.
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ar09
GrossProfitMarginNet ProfitMarginReturn onAssetsBasicEarningPowerReturn onEquity
er the years iscy of productiony. This is good
the years iscy of g, financing,
the company.it indicates they.sed over the
verallased and is
creased sharplyrovement in thempany.ply over theequity but a
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said to be bad.hroughout thehareholder'sf assets which