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Analysis of Shreyans Industries Ltd.

Balance Sheet ------------------- in Rs. Cr. -------------------


Mar '05 Mar '06 Mar '07 Mar '08 Mar '09
Sources Of Funds
Total Share Capital 11.07 11.07 11.07 11.07 11.07
Equity Share Capital 11.07 11.07 11.07 11.07 11.07
Share Application Money 0 0 0 1.64 8.94
Preference Share Capital 0 0 0 0 0
Reserves -8.79 -0.84 5.79 17.84 35.96
Revaluation Reserves 0 0 0 0 0
Networth 2.28 10.23 16.86 30.55 55.97
Secured Loans 80.07 69.42 67.63 71.5 61.77
Unsecured Loans 3.82 2.71 2.62 2.55 3.01
Total Debt 83.89 72.13 70.25 74.05 64.78
Total Liabilities 86.17 82.36 87.11 104.6 120.75
Application Of Funds
Gross Block 117.42 119.75 127.48 124.31 169.82
Less: Accum. Depreciation 51.62 56.57 62.18 62.43 67.21
Net Block 65.8 63.18 65.3 61.88 102.61
Capital Work in Progress 1.98 2.65 9.63 21.95 4.26
Investments 0.55 0.2 0.01 0.01 2.97
Inventories 11.47 9.12 15.28 18.27 21.16
Sundry Debtors 28.43 26.23 24.51 28.14 20.41
Cash and Bank Balance 1.39 2.31 1.35 3.23 1.59
Total Current Assets 41.29 37.66 41.14 49.64 43.16
Loans 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 & Advances 50.81 48.84 62.09 66.16 66.2
Deffered Credit 0 0 0 0 0
Current Liabilities 33.06 32.2 49.4 46.61 48.97
Provisions 0.03 0.32 1.2 0.45 6.33
Total CL & Provisions 33.09 32.52 50.6 47.06 55.3
Net Current Assets 17.72 16.32 11.49 19.1 10.9
Miscellaneous Expenses 0.15 0 0.7 1.68 0
Total Assets 86.2 82.35 87.13 104.62 120.74
Contingent Liabilities 3.01 9.46 10.14 7.17 1.1
Book Value (Rs) 2.07 9.24 15.23 26.11 42.47
ies Ltd.
Analysis of Shreyans Industries Ltd.
Profit & Loss account ------------------- in Rs. Cr. -------------------
Mar '05 Mar '06 Mar '07 Mar '08 Mar '09
Income
Sales Turnover 158.32 193.31 214.44 238.69 269.61
Excise Duty 14.53 14.49 16.08 20.11 11.12
Net Sales 143.79 178.82 198.36 218.58 258.49
Other Income -0.11 -0.3 0.4 -1.92 -0.65
Stock Adjustments -0.88 -0.83 0.82 0.89 -0.87
Total Income 142.8 177.69 199.58 217.55 256.97
Expenditure
Raw Materials 70.7 85.2 96.72 102.43 112.73
Power & Fuel Cost 33.74 40.15 47.6 51.49 63.05
Employee Cost 13.88 13.87 15.19 18.02 19.27
Other Manufacturing Expenses 5.46 5.95 7.21 7.61 9.26
Selling and Admin Expenses 9.39 7.48 6.75 6.26 11.66
Miscellaneous Expenses 1.01 1.17 1.18 1.07 1.31
Preoperative Exp Capitalised 0 0 0 0 0
Total Expenses 134.18 153.82 174.65 186.88 217.28
Operating Profit 8.73 24.17 24.53 32.59 40.34
PBDIT 8.62 23.87 24.93 30.67 39.69
Interest 9.21 8.33 7.48 7.29 6.67
PBDT -0.59 15.54 17.45 23.38 33.02
Depreciation 5.21 5.65 5.84 5.89 6.88
Other Written Off 0.15 0.15 0 0 0
Profit Before Tax -5.95 9.74 11.61 17.49 26.14
Extra-ordinary items 1.3 1.02 0.26 0.47 0.21
PBT (Post Extra-ord Items) -4.65 10.76 11.87 17.96 26.35
Tax 0.02 2.83 5.26 5.9 7.83
Reported Net Profit -4.67 7.95 6.63 12.05 18.12
Total Value Addition 63.48 68.63 77.92 84.45 104.55
Preference Dividend 0 0 0 0 0
Equity Dividend 0 0 0 0 0
Corporate Dividend Tax 0 0 0 0 0
Per share data (annualised)
Shares in issue (lakhs) 110.75 110.75 110.75 110.75 110.75
Earning Per Share (Rs) -4.22 7.18 5.98 10.88 16.36
Equity Dividend (%) 0 0 0 0 0
Book Value (Rs) 2.07 9.24 15.23 26.11 42.47
es Ltd.
Analysis of Shreyans Industries Ltd.
Ratio Analysis
Liquidity Ratios
Current Ratio
Quick Ratio
Solvency Ratios
Debt-Equity Ratio
Liabilities To Equity Ratio
Interest Coverage Ratio
Debt-Asset Ratio
Efficiency Ratios
Inventory Turnover
Debtor Turnover
Average Collection Period
Fixed Assets Turnover
Total Assets Turnover
Profitability Ratios
Gross Profit Margin
Net Profit Margin
Return on Assets
Basic Earning Power
Return on Equity
ans 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 7.17
PBIT/Interest Expense 0.35 2.17 2.55
Debt/Assets 1.65 1.48 1.13

COGS/Avg Inventory 15.02 14.25


Net Sales/Avg. Sundry Debtors 6.54 7.82
365/Debtor Turnover 55.78 46.68
Net Sales/Avg Net Fixed Assets 2.68 2.82
Net Sales/ Avg Total Assets 2.12 2.34

Gross Profit/ Net Sales 0.06 0.14 0.12


Net Profit/ Net Sales -0.03 0.04 0.03
PAT/Avg Total Assets 0.09 0.08
PBIT/Avg Total Assets 0.21 0.23
Equity Earnings/Avg Equity 1.27 0.49
Mar '08 Mar '09

1.41 1.2
1.02 0.81

2.42 1.16
3.96 2.15
3.4 4.92
1.12 0.98

11.09 11.07
8.3 10.65
43.96 34.28
2.75 2.71
2.28 2.29

0.15 0.16
0.06 0.07
0.13 0.16
0.26 0.29
0.51 0.42
Comments
Liquidity Ratios Solvency Ratios

2 60

1 50 Solvenc
Liquidit y Ratios
1 y Ratios Debt-
Current Equity
1 Ratio Ratio
40
Quick Liabiliti
1 Ratio es To
Equity
1 Ratio
30
Interest
Covera
ge Ratio
Debt-
20 Asset
Gross Profit Margin=Gross Profit/ Net Sales Ratio
Mar Mar Mar Mar Mar
Net Profit Margin=Net Profit/ Net Sales
'05 '06 '07 '08 '09

Decreasing Current Ratio is 10


indicating that the company's
ability to meet its current liabilities
with current assets is decreasing.
This is a bad news for its short-
Mar Mar Mar Mar Mar
term creditors.
'05 '06 '07 '08 '09
Decreasing Quick Ratio is
indicating that company's ability to Decreasing Debt-Equity Ratio is
meet its current liabilities with indicating that riskiness for
more liquid assets is also creditors is decreasing. This is a
decreasing which is also a bad good news for the company.
news. Decreasing Liability to Equity Ratio
is a good indicator for the company
as it supports decreasing debt to
equity ratio.
Increasing Interest coverageRatio is
indicating that the company is
becoming increasingly secure for
the creditors who will receive the
interest charges in time. So, the
company has sufficient income to
cover its interest requirements as
of 2009.
Decreasing Debt Asset Ratio is
indicating that the support of
borrowed funds for firm's asset is
decreasing. This is good for the
company as the company's
dependence on borrowings is
decreasing.
Decreasing Debt Asset Ratio is
indicating that the support of
borrowed funds for firm's asset is
decreasing. This is good for the
company as the company's
dependence on borrowings is
decreasing.

Conclusion :
Thus, after analysing the company's financial reports through various ratios , it can be safel
the firm to meet its short-term obligations when they fall due is decreasing, firm's long-term
its asset management is also becoming efficient and the performance of the company in ter
successis is improving steadily through the years. Thus overall, the company is becoming m
Efficiency Ratios Profitability Ratios

60 1

1
50 Efficiency
Ratios
Gross
Inventory 1 Profit
Turnover Margin
40 Debtor Net Profit
Turnover 1 Margin
Average Return on
Collection Assets
Period 1
30 Basic
Fixed Earning
Assets Power
Turnover
Return on
Total Equity
20
Assets
Turnover

10

Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar
'05 '06 '07 '08 '09 '05 '06 '07 '08 '09

Decreasing Inventory Turnover is indicating Increased Gross Profit Margin over the years is
that the efficiency of inventory management indicating the increased efficiency of production
of firm is decreasing which is bad for the as well as pricing of the company. This is good
company. for the company.
Increasing Debtor Turnover is a good Increased Net Profit Margin over the years is
indicator of the company's ability to collect indicating the increased efficiency of
credit from the customers in a prompt production, administration, selling, financing,
manner. So, company is having a better pricing and tax management of the company.
management of receivables. This is good for the company as it indicates the
Decreasing Avg Collection period is good for cushion available to the company.
the company as it will now have less Days Return on Assets has also increased over the
Sales Outstanding which have been reduced years which indicates that the overall
from 55 in 2005 to 34 in 2009. profitability of the firm has increased and is
Fixed Asset Turnover has remained constant good for the company.
around 2.7 indicating that the firm has high Basic Earning Power has also increased sharply
degree of efficiency in asset utilization i.e. over the years indicating an improvement in the
sales per Rupee of investment is around Rs. operating performance of the company.
2.7. Return on Equity has fallen sharply over the
A constant Total Asset Turnover of around 2.3 years due to a sharp increase in equity but a
is indicating that the firm is utilizing its small increase in equity earnings over the
overall assets very efficiently. years. So, this decrease can't be said to be bad.
ROE has been higher than ROA throughout the
years so earnings per rupee of shareholder's
sales per Rupee of investment is around Rs. operating performance of the company.
2.7. Return on Equity has fallen sharply over the
A constant Total Asset Turnover of around 2.3 years due to a sharp increase in equity but a
is indicating that the firm is utilizing its small increase in equity earnings over the
overall assets very efficiently. years. So, this decrease can't be said to be bad.
ROE has been higher than ROA throughout the
years so earnings per rupee of shareholder's
funds has been more than that of assets which
is good.
arious ratios , it can be safely said that the ability of
decreasing, firm's long-term solvency is improving,
mance of the company in terms of operating
the company is becoming more efficient.
Gross
Profit
Margin
Net Profit
Margin
Return on
Assets
Basic
Earning
Power
Return on
Equity

Mar Mar
'08 '09

Margin over the years is


d efficiency of production
e company. This is good

argin over the years is


d efficiency of
tion, selling, financing,
ement of the company.
mpany as it indicates the
e company.
also increased over the
that the overall
has increased and is

as also increased sharply


ng an improvement in the
e of the company.
allen sharply over the
ncrease in equity but a
y earnings over the
e can't be said to be bad.
han ROA throughout the
rupee of shareholder's
e of the company.
allen sharply over the
ncrease in equity but a
y earnings over the
e can't be said to be bad.
han ROA throughout the
rupee of shareholder's
han that of assets which