Final Report (Accounts) - Copy

7/27/2019 Final Report (Accounts) - Copy

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AMITY UNIVERSITY, UTTAR PRADESH

AMITY BUSINESS SCHOOL

ACCOUNTING & FINANCIAL MANAGEMENT-I

In partial fulfillment of Masters of Business Administration

(2013-2015)

Submitted By-Akansha Nagpal (A-24)

Akanksha Tyagi (A-03)

Diksha Singhal (A-67)

Ananya Dubey (A-66)


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ACKNOWLEDGEMENT

The satisfaction and euphoria that accompany the successful completion of anytask that would be incomplete without mentioning the name of the people

whose constant guidance and encouragement has crowned all our efforts andsuccess.

Firstly, we would like to thank Ms. Lakhwinder Kaur Dhillon (Professor,

ABS) who has through her vast experience and knowledge has been able

to guide us, both ably and successfully towards the completion of the

Economics for Managers project.

We wish to express our gratitude to all the group members for stretching

out their helping hands. We were able to complete this project with their

support and hard work. So, thank you!


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CONTENTS

S No. Topics Page No.

1

2

3

4

5

7


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BHARTI AIRTEL

BALANCE SHEET OF BHARTI AIRTELFor the year ended 2013 (in crores)

LIABILITIES 2012 2013 ASSETS 2012 2013

EQUITY SHARE CAPITAL 1898.80 1898.80 GROSS BLOCK 70450.30 76206.10

RESERVES 47528.70 52247.40 LESS:DEPRICIATION -26466.00

-

33023.50

REVALUATION RESERVE 2.10 0.00 43984.30 43182.60

TOTAL DEBT: CAPITAL WORK-IN-PROGRESS 1072.50 1030.80

SECURED LOAN 2.90 2.00 INVESTMENTS 12337.80 28199.10UNSECURED LOAN 14126.50 12977.80 INVENTORIES 32.10 2.10

CURRENT LIABILITIES 17145.20 20061.70 SUNDRY DEBTORS 2134.50 2246.80

PROVISIONS 697.50 695.50 CASH AND BANK BALANCE 159.20 362.70

FIXED DEPOSITS 322.60 0.00

LOANS & ADVANCES 21309.50 12859.10

MISCELLANOUS EXPENSES 49.20 N/A

TOTAL 81401.70 87883.20 TOTAL 81401.70 87883.20

PROFIT AND LOSS ACCOUNT OF BHARTI MITTAL

AS ON 31st MARCH 2013 (in crores)

PATICULARS AMOUNT (IN

RS.)

PARTICULARS AMOUNT (IN RS.)

OPENING STOCK 32.10 SALES 45350.90

PURCHASES 11.20 CLOSING STOCK 2.10

POWER AND FUEL COST 3569.90GROSS PROFIT c/d 41739.80

TOTAL 45353.00 TOTAL 45353.00

EMPLOYEE COST 1511.30 GROSS PROFIT b/f 41739.80

OTHER MANUFACTURING EXPENSES 14325.30 OTHER INCOME 1463.00


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SELLING & ADMINISTRATION

EXPENSES

5252.00

MISCELLANEOUS EXPENSES 7191.70

INTEREST 1652.30

DEPRICIATION 6826.70

TAX 1358.50NET PROFIT c/d 5085.00

TOTAL 43202.80 TOTAL 43202.80

Other Information-

a)No. of equity shares o/s = 37975.30b) Total no. of equity shares issued = 3997400102c) Face valued) Market value of shares =

CALCULATION OF RATIOS-

A)LIQUIDITY RATIOS-A.1) Current Ratio = Total current assets/ Total current liabilities

Total C.A. = Short-term Investments + Inventories + Debtors + Cash &Bank Balances + Loans & Advances

= 28199.10 + 2.10 + 2246.80 +362.70 +12859.10

= 43669.80 Rs. (in crores)

Total C.L. = 20061.70 Rs. (in crores)

Therefore, CA/CL = 43669.80/20061.70 = 2.176 ~ 2.18

A.2) Quick Ratio = (Total C.A- Total Inventory- Prepaid expenses)

Total Current Liability

= (43669.802.100)

20061.70

= 43667.70

20061.70

= 2.1766 ~ 2.18


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A.3) Absolute Liquid ratios = Absolute Liquid assets/ C. L. = Cash + Bank +

short term securities/ C.L

= 362.70 + 1030.80 + 28199.10 + 2.10 + 2246.80

20061.70

= 1.587

Working notes: Investments are assumed to be short-term investment.

B) EFFICIENCY/ACTIVITY RATIOS-

B.1) Inventory Turnover Ratio = COGS/ Average Inventory

Now, COGS = Opening stock + PurchasesClosing stock

= 32.10 + 11.202.10= 41.20 Rs. (in crores)

Now, Average Inventory = Opening stock + Closing stock / 2

= 32.10 + 2.10 / 2 = 17.10 Rs. (in crores)

Therefore, ITR = 41.20 / 17.10

= 2.467 ~ 2.47 times

B.2) Debtor Turnover Ratio = Net credit sales/ Average Debtors

= 25350.90/2246.80= 11.283 ~ 11.28 times

(a) In months = 12/11.28 = 1.06 months

(b) In days = 365/11.28 = 32.358 days


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B.3) Creditor Turnover Ratio = Net Purchases/ Average Creditors

= 11.20 /

= times

(a) In months = 12/

(b) In days = 365/

B.4) Working Capital Turnover Ratio = COGS/ Net working capital

= 41.20/ 23608.1

= 0.0017

B.5) Total Asset Turnover Ratio = Net Sales/ Total Assets= 45350.9 / 87883.2 = 0.516

B.6) Fixed Asset Turnover Ratio = Net Sales/ Fixed Assets

= 45350.9 / 43182.60 = 1.05

C) SOLVENCY RATIOS-

C.1) Debt Equity ratio = Outsiders fund

Shareholders fund= 12979.2/ 1898.80 + 52247.40

= 12979.2/ 54146.2 = 0.239 ~ 0.24

C.2) Proprietary Ratio = Shareholders fund

Total Assets

= 1898.80 + 52247.40/ 87883.20

= 0.616 ~ 0.62

C.3) Capital Gearing Ratio = Equity share capital + R&SPref. share capital + Long-term debt

= 1898.80 + 52247.40 = 54146.2 = 4.171 ~ 4.17

0 + 12979.80 12979.80


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C.4) Interest Coverage Ratio = Net profit (before interest, dep. and tax)

Interest

= 14922.1 / 1652.30 = 9.03

C.5) Debt service coverage ratio = PAT + Depreciation + Interest on loanInterest on loan + Loan re-payment in a year

= 5085 + 6826.7 + 1652.3 = 13564 / 1653.2

1652.3 + 0.9

= 8.20

D) PROFITABILITY RATIOS-

D.1) Gross Profit Ratio = Gross Profit x 100

Net Sales

= 41739.80 x 100 = 92.037

45350.90

D.2) Net Profit Ratio = Net Profit x 100 = 5085.00 x 100 = 11.212 ~ 11.21

Net Sales 45350.90

D.3) Operating Profit Ratio = Operating Profit x 100 = 36487.80 x 100

Net Sales 45350.90

= 80.456 ~ 80.46

Since, Operating Profit = Gross ProfitAdministrative ExpensesSelling

Expenses

= 41739.805252.00 = 36487.80

D.4) Return on investment = Net profit before interest, tax and dividend x 100

Capital employed

= 5085/54148.2 = 9.3%

Working Note:

Capital employed = equity share capital + preference shares capital + reserves and

surplus + long term loans +debenturesfictitious assets


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= 1898.80 + 52247.40 + 2 = 54148.2

D.6) Return on Equity = ROE

Where, ROE = Net profit after tax interest and dividend

Equity share capital

= 5085/18980.8 = 26.7 %

D.7) Return on Capital Employed = Net profit before tax and interest and dividend

Capital employed

= 6454.80/54148.2 = 11.9%

E) VALUATION RATIOS-

E.1) Earnings per share [EPS] = Net profit after tax and preference dividend

Number of equity shareholders

= 5085/ 37975.30 = 13.3%

E.2) Price-Earnings Ratio [PER] = Market Price per share of common stock

Earnings per share of common stock

= 325.30/13.3= 24.45% ~ 24.5%

E.3) Dividend-Yield Ratio = Current dividend per share dividedMarket price of the stock

= 1/325.30 = .307% ~ .31%

Working Notes:

Current dividend per share given is 20% of the market price amounting to Rs 1 pershare

E.4) Dividend Payout Ratio = Common dividend per share

Earnings per share

= 1/13.3= .075% ~ .08%


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E.5) Market Value to Book value Ratio = MV per share/ BV per share

=

FINANCIAL RATIO ANALYSIS

1.

Documents

Final Report (Accounts) - Copy