managerial accounting
TRANSCRIPT
MANAGERIAL ACCOUNTING
GROUP 3
2
FINANCIAL STATEMENT ANALYSIS
INTRODUCTION
COMPANY PROFILE
ANALYSIS OF THE INCOME STATEMENT
ANALYSIS OF THE BALANCE
SHEET
TREND ANALYSIS
Name: Frazer Taylor Roll no: 54
3
4
FINANCIAL STATEMENT ANALYSIS
• It means Assessing the firm’s past, present and future financial conditions..
• It is undertaken to find out the financial strengths and weaknesses of a firm.
• So, what is financial statement analysis?? It is nothing but a collective name given for the tools and techniques that are intended to provide relevant information to the decision maker.
• The very purpose of the FSA is to assess the financial health and performance of the company.
MY ROLL NO IS 54
5
• FSA consist of the comparisons for the same company over the period of time and comparisons of different companies either in the same industry or in different industries.
• But in our presentation we have used the comparative statements i.e. the comparison of the same company for a period of two years.
• And not to forget, the trend analysis.
• What is trend analysis??
• Trend analysis or the time series indicates the direction of change over a period of years.
6
COMPANY PROFILE MRF TYRES LTD.
• MRF Ltd was established in the year 1946 by K M Mammen Mappillai as a small toy balloon unit.
• Much later in November 1960, the company ventured in manufacturing of tyres and today…
• MRF Ltd is India's No.1 tyre manufacturing company. The company is engaged in the manufacturing of rubber products, such as tyres, tubes etc.
Businesses are like Fruit Bearing Trees
Fruit = Operating Activities
Trunk & Branches = Investing Activities
Roots = Financing Activities
7
PRE-ANALYSIS
• Before analyzing the financial reports one should keep 3 points in mind.
• It is necessary to look at the trends, generally for 3 to 5 years as it is necessary to ascertain how the firms financial performance is changing over time.
• One should also carefully read and analyze the annual reports including the footnotes to the financial statements.
• The analysis may raise further questions for which additional information is needed. So this information can be obtained from the in-depth analysis of the annual report.
8
COMPARATIVE INCOME STATEMENT
PARTICULARS 2011 2012 (+) or (-) % CHANGE
INCOME:
Revenue from Operations (Gross) 10644.86 13061.75 2416.89 23%
Less: Excise Duty 901.69 1191.57
289.88
32.14%
Revenue from Operations (Net) 9743.17 11870.18 2127.01 22%
Other Income 25.31 32.01 6.7 26%
Total Revenue 9768.48 11902.19
2133.71
22%
(Rupees in Crores)
9
10
REVENUE FROM OPERATIONS
SALES: 2011 2012
Finished Goods 10637.03 13054.03
+ Export Incentives 7.83 7.72
TOTAL 10644.86 13061.75
DETAILS OF SALES: (CLASS OF GOODS) 2011 2012
Automobile Tyres 9153.62 11486.88
Automobile Tubes 927.29 1047.73
Others 556.12 519.31
11
SALES CHART
2008 2009 2010 2011 2012
0
2000
4000
6000
8000
10000
12000
14000
SALES
SALES (in Crores)
12
TREND ANALYSIS (SALES)
2008 2009 2010 2011 20120%
50%
100%
150%
200%
250%Sales (% )
Sales (% )
NAME: MABEL SOARES
ROLL NO: 52
PARITCULARS 2011
2012 CHANGE %CHANGE
EXPENDITURE Rs. Crore Rs. Crore Rs. Crore Rs. Crore
Cost of raw materials consumed 7379.16 8344.27 965.11 13.08
Employee benefits expense 446.75 513.69 66.94 14.98
Finance costs 97.67 158.78 61.11 62.57
Depreciation & Amortization expense
247.63 301.11 53.48 21.60
Other expenses 1379.94 1742.57 362.63 26.28
Expenses 2008 2009 2010 2011 2012
Materials consumed
3556.19 3827.44 5156.78 7283.46 8553.26
Manufacturing Expenses
382.75 361.71 516.00 570.57 668.98
Personnelexpenses
275.71 316.82 378.17 446.75 513.69
Selling expenses 314.54 365.27 444.64 465.30 465
Administrative expenses
93.54 102.90 130.88 136.72 853.75
Cost Of Sales 4622.73 4974.14 6626.47 8902.80 10589.68
2008 2009 2010 2011 20120
2000
4000
6000
8000
10000
12000
EXPENSES OF MRF TREND ANALYSIS
Materials consumed Manufacturing Expenses Personnel expensesSelling expenses Administrative expenses
2008 2009 2010 2011 20120100020003000400050006000700080009000
EXPENSES OF MRF
Materials consumed Manufacturing Expenses Personnel expensesSelling expenses Administrative expenses
NAME: ZAMILA PACHECO
Roll No: 40
2010-11 2011-12
Profit before taxation and exceptional itemExceptional ItemExcess depreciation reversal in respect of earlier years.
Profit before taxation Less: Provision for Taxation: Current Tax Less: MAT Credit Entitlement Deferred Tax Short provision of earlier years
Basic & diluted earning per share
% CHANGE
489.42
404.23
893.65
154.00 (35.90) 156.80 (0.67)
274.23
619.42
833.12
---
833.12
235.50(19.56) 44.92 (0.10)
1349.52
260.76
572.36
70.23
6.77
52.9245.5171.3585.07
7.60
1460.50 7.60
4.91
COMPARATIVE P&L A/C FOR THE YEAR ENDED SEPTEMBER 2011 & 2012
Profit for the year from continuing operations (PAT)
2008 2009 2010 2011 20120
200
400
600
800
1000
1200
1400
Adjusted PBDITAdjusted PBTAdjusted PAT
YEARS Adjusted PBDIT Adjusted PBT Adjusted PAT
2008 440.62 206.85 137.43
2009 710.63 392.39 250.23
2010 842.62 518.77 338.92
2011 827.84 487.19 212.29
2012 1293.01 833.12 572.26
YEARS Retained Earnings/ EPS
2008 134.642009 240.632010 329.262011 607.092012 560.03
2008 2009 2010 2011 20120
100
200
300
400
500
600
700Retained Earnings/ EPS
Retained Earnings/ EPS
BLOSSOM REBELLO45-2013
22
SHARE CAPITAL
The Company has one class of equity shares having a par value of Rs. 10 per share.
Listing on Stock Exchanges at:1. The Madras Stock Exchange Ltd.
2. National Stock Exchange of India Ltd. 3. The Bombay Stock Exchange Ltd.
The Company’s quarterly and half yearly results are published in the newspapers and also uploaded on its website (www. mrftyres.com) and website (www.corpfiling.co.in).
2009-10 Dividend Payment Date• Interim Dividend: 20-08-2010 Rs.3 per share (30%)
• II Interim Dividend: 16-11-2010 Rs.3 per share (30%)
• Final and Special Dividend: 17-02-2011 Rs. 44 per share (440 %)
2011-12 Dividend Payment Date• Interim Dividend: 19-08-2011 Rs.3 per share (30%)
• II Interim Dividend: 11-11-2011 Rs.3 per share (30%)
• Final Dividend: 16-02-2012 Rs. 19 per share (190 %)
2010-11 Dividend Payment Date• Interim Dividend: 19-08-2011 Rs.3 per share (30%)
• II Interim Dividend: 11-11-2011 Rs.3 per share (30%)
• Final Dividend: 16-02-2012 Rs. 19 per share (190 %)
2009-10
Shareholding No.of shareholders % No. of shares %Upto 500 33346 98.71 879341 20.73501-1000 193 0.57 141370 3.33
1001-2000 102 0.30 148957 3.512001-3000 26 0.08 64739 1.533001-4000 13 0.04 44556 1.054001-5000 18 0.05 80251 1.89
5001-10000 25 0.07 184914 4.3610001 and above 58 0.17 2697015 63.59
TOTAL 33781 100 4241143 100
2010-11Shareholding No. of shareholders % No. of shares %
Upto 500 35371 98.84 871888 20.56501-1000 179 0.5 128610 3.03
1001-2000 28 0.08 193600 4.572001-3000 18 0.05 81906 1.933001-4000 12 0.03 43120 1.024001-5000 30 0.08 75239 1.775001-10000 93 0.26 135418 3.19
10001 and above 56 0.16 2711362 63.93TOTAL 35787 100 4241143 100
2011-12Shareholding No.of shareholders % No. of shares %
Upto 500 29927 98.66 790365 18.64501-1000 152 0.5 112099 2.641001-2000 95 0.31 138101 3.262001-3000 33 0.11 80210 1.893001-4000 10 0.03 35018 0.834001-5000 27 0.09 35018 2.87
5001-10000 36 0.12 121918 5.7510001 and above 53 0.18 2719635 64.12
TOTAL 33781 100 4241143 100
2009 2010 2011 2012
4.24 4.24 4.24 4.241357.18 1686.44 2293.53 2853.561361.42 1690.68 2297.77 2857.8
I) Shareholders' fundsa) Share capitalb) Reserves and surplusa + b
BALANCE SHEET AS AT 30 SEPTEMBER,MRF LIMITED, CHENNAI
SOURCES OF FUNDS
Share capital 2009 2010 2011 2012 Rs. Crores
Authorised 1,00,000 Taxable Redeemable Cumulative Preference Shares of Rs.100
each 1.00 1.00 1.00 1.00
90,00,000 Equity Shares of Rs. 10 each 9.00 9.00 9.00 9.00
10.00 10.00 10.00 10.00
Issued 42,41,214 Equity Shares of Rs.10 each 4.24 4.24 4.24 4.24
Subscribed 42,41,143 Equity Shares of Rs.10 each fully paid-up 4.24 4.24 4.24 4.24
4.24 4.24 4.24 4.24
2009/10/11/12Subscribed:Of the above, 5, 54,461 Equity Shares allotted as fully paid-up pursuant to a contract without payments being received in cash. And 17,81,118 Equity Shares allotted as fully paid-up by way of Bonus Shares by Capitalization of Reserve.The Company has not raised any money by way of public issues during the year.
Reserves and surplus 2009 2010 2011 2012 Rs. Crores
Share Premium Account As per last balance sheet 9.42 9.42 9.42 9.42
General reserve As per last balance sheet 1107.13 1347.76 1677.02 2266.17
Add: Transfer from profit and loss account 240.63 329.26 589.15 531.23
1347.76 1677.02 2266.17 2797.4
Debenture redemption reserve As per last balance sheet NA NA NA 17.94
Add: Transfer from profit and loss account NA NA 17.94 28.8
17.94 46.74
1357.18 1686.44 2293.53 2853.56
RESERVES & SURPLUS TREND
32
1,361.421,690.68
2,297.77
2,857.80
1 1 10.00
500.00
1,000.00
1,500.00
2,000.00
2,500.00
3,000.00
3,500.00
2009 2010 2011 2012
2009
2010
2011
2012
2009 2010 2011 2012Equity share capital 4.24 4.24 4.24 4.24Add- pref. share capital NA NA NA NAAdd- reserves & surplus 1,357 1,686 2,294 2,854less- acc losses 0 0 0 0SHAREHOLDERS FUND 1,361.42 1,690.68 2,297.77 2,857.80
` 2009 2010 2011 2012Profit after Taxation (Rs.) 2530300000 3539800000 6194200000 5723600000Number of equity shares (Face Value Rs.10/- each) 4241143 4241143 4241143 4241143Earnings Per Share (PAT/No. of eq. shares) 596.61 834.63 1460.50 1349.54
2009 2010 2011 2012Dividend paid 9.8 12.39 24.41 12.32DPS 23.11 29.21 57.56 29.05
2009 2010 2011 2012Reserves and surplus (Rs. Crores) 1357.18 1686.44 2293.53 2853.56Trend % (R&S) 100 124.26 168.99 210.26Total liabilities 2767.87 4016.57 6335.9 7212.27R&S to total liabilities % 49.03 41.99 36.20 39.57Share capital (Rs. Crores) 4.24 4.24 4.24 4.24Share capital to total liabilities % 0.15 0.11 0.07 0.06
NAME:-TANVI SHENOYROLL NO: 50
Topic: FIXED ASSETS
NAME : PRIYANKA VELEGKAR ROLL NO: 56
TOPIC: INVESTMENTS
• ASSETS • Non-current assetsFixed assets 11 2011-12
(crores)2010-11(crores)
Increase/decrease
% change
Tangible Assets 2907.81 1967.57 940.24 47.79%
Intangible Assets 5.99 3.81 2.18 57.22%
Capital work –in-progress
414.65 1042.25 -627.6 -60.22%
INVESTMENTS 3328.45 3013.63 314.82 10.45%Non –current investments
12 71.54 72.69 -1.15 -1.58%
Long- term loans& advances
13 57.23 146.43 -89.2 -60.92%
Other Non –Current Assets
14 30.46 23.74 6.72 28.31%
3487.68 3256.49 231.19 7.10%
2007-08 2008-09 2009-2010 2010-2011 2011-2012
-200
-150
-100
-50
0
50
100
150
200 FIXED ASSET
CAPITAL WORK IN PROGRESS
• NAME: Sonali SATERKAR• Roll no:- 48
COMPARATIVE STATEMENT(current liability & provision)
CURRENT LIABILITIES
2010-11(BASE YEAR)
2011-12 INCRESE/DECRESE % CHANGE
SHORT TERM BORROWING
410.07 528.72 118.65 28.93%
TRADE PAYABLES
1015.83 939.43 -76.4 7.52%
OTHER CURRENT
LIABILITIES
526.79 454.33 -72.46 13.75%
PROVISION FOR TAXATION
156.77 147.24 -9.53 6.07%
TOTAL 2109.46 2069.72 -39.74 1.88%
MRF’s working capital
Sep '06
Sep '07
Sep '08
Sep '09
Sep '10
Sep '11
Sep '12
0
500
1000
1500
2000
2500
3000
3500
4000
Working capital
current assetscurrent liabilities & provisionsExponential (current liabili-ties & provi-sions)
years
Rs in
cror
es
A declining WC may be a sign of
deteriorating financial condition, or it might
result from eliminating obsolete
inventories.
Trend analysisof current liabilities
2009 2010 2011 2012
050
100150200250300350400450500
short term borrowingTRADE PAYEBLESOTHER LIABILITIESSHORT TERM PROVISION
years
IN %
NAME: CLENCY COUTINHO
ROLL NO: 04
Non - current liabilities
2011(base year)
2012(current year)
Increase/ Decrease
% change
Long-term borrowings 961.49 1102.71 141.22 14.68%
Deferred tax liabilities
141.80 186.72 44.92 31.67%
Other long term liabilities
775.75
908.03 132.28 17.05%
Long term provisions 49.63
87.29 37.66 75.88%
Name : Shweta parab Roll No: 42
46
PARTICULARS 2010-2011 (crore)
2011-2012(crore)
INCREASE /DECREASE
% INCREASE/ DECREASE
PARTICULARS 2010-2011(crore)
2011-2012(crore)
INCREASE /DECREASE
% INCREASE/DECREASE
C) WORKING CAPITAL
i)CURRENT ASSETS
Current Investments
- 353.17 353.17 -
Inventories 1526.02 1645.59 119.75 7.83
Sundry Debtors 1308.09 1454.09 146 11.16
Cash & Bank balance 57.24 61.10 3.86 6.74
Loans &Advances 256.39 203.42 (52.97) (20.65)
Other Current Assets - 7.22 7.22 -
total 3147.74 3724.59 576.85 18.32
2008-2009 2009-2010 2010-2011 2011-2012
-50
0
50
100
150
200
current investmentinventoriessundry debtorscash&bank balanceloans &advancesother current assets
THANK YOU