term paper accounts zee telelevision

8/8/2019 Term Paper Accounts Zee Telelevision

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TERM PAPERTOPIC- ZEE TELEFILMS

LTD

SUBMITTED TOSUBMITTED BY

SUKHWINDER KAURVINEETH NAIR

ROLL NO - B36

SECTION - RT1001

REG NO- 11002057


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The company was incorporated on 25 th November and itobtained the certificate of commencement of business on5 th January 1983 as empire. it was promoted by the Esselgroup of companies comprising Sanjay badgamia, VansantParekh and Ashok Kothari.

It entered into the business of entertainment softwaresubsequently the name was changed to zee telefilms ltd.The company co- promoted Essel packaging ltd. Thepartnership company of the essel group in 1982. Channelsoperated by zee telefilms are-zee studio, zee cinema, zeenews, zee music, zee caf, zee movies, zee English, zee

smile etc.


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PRODUCT PROFILEThe company produces hindi films,serials, game shows,children programmes etc. the company would alsocommission serials, game shows etc, through directors oncontract basis, purchase rights of Hindi films, serials andother programmes from the producers for apredetermined period. They deal in television

broadcasting .

COMPETITORSStar TV & Sony TV are the competitors of zee televisions .

SHARE PRICEZee stock- INR 293.70


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BRANCHESHeadquarter of Zee televisions are located in Mumbai.

Its branches are in Canada, Hongkong, India, Singapore,South Africa, United Arab Emirates, United Kingdom andUnited States of America.

LISTED ON

Bombay stock exchange and national stock exchange,India

LATEST NEWS

1.Zee TV present- dill se diya vachan.


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2. Corrigendum communication issued to stock exchanges on annual report.

3. Zee Aflum becomes the No 1 movie channel during

Ramadan.4. ZEEL press release for audited results for the yearended March 31 st .

5. Zee entertainment investor newsletter.

COMPARITIVE

P ROFIT & LOSS A/C Profit & Loss account of ZeeEntertainment Enterprises

Mar '08 Mar '09 Mar '10 inc/dec % inc/dec %

12 months 12 months 12 months2008-2009

2008-2009

2009-2010

2009-2010

Income

Sales Turnover 1,041.99 1,210.24 1,278.74 168.2516.1469

88 68.505.66003

44

Excise Duty 0 0 0 0 #DIV/0! 0.00 #DIV/0!

Net Sales 1,041.99 1,210.24 1,278.74 168.2516.1469

88 68.505.66003

44

Other Income 75.77 56.92 106.18 -18.85

-24.8779

2 49.2686.5425

16

Stock Adjustments 48.36 81.96 130.67 33.669.4789

08 48.7159.4314

3

Total Income 1,166.12 1,349.12 1,515.59 18315.6930

68 166.4712.3391

54

Expenditure 0 #DIV/0! 0.00 #DIV/0!

Raw Materials 3.47 4.86 2.69 1.3940.0576

37 -2.17

-44.6502

06

Power & Fuel Cost 0 0 0 0 #DIV/0! 0.00 #DIV/0!

Employee Cost 62.1 92.42 81.46 30.3248.8244

77 -10.96

-11.8589

05

Other Manufacturing Expenses 406.4 581.91 553.65 175.5143.1865

16 -28.26

-4.85642

11

Selling and Admin Expenses 190.65 233.63 0 42.9822.5439

29 -233.63 -100

Miscellaneous Expenses 18.5 18.11 240.51 -0.39

-

2.1081081 222.40 1228.0508


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Preoperative Exp Capitalised 0 0 0 0 0 0 0

Total Expenses 681.12 930.93 878.31 249.810.36676

36 -52.62

-5.65241

21

Operating Profit 409.23 361.27 531.1 -47.96

-11.7195

71 169.8347.0091

62

PBDIT 485 418.19 637.28 -66.81

-13.7752

58 219.0952.3900

62

Interest 20.05 27.51 17.53 7.4637.2069

83 -9.98

-36.2777

17

PBDT 464.95 390.68 619.75 -74.27

-15.9737

61 229.0758.6336

64

Depreciation 10.6 11.92 11.43 1.3212.4528

3 -0.49

-4.11073

83

Other Written Off 0 0 0 0 #DIV/0! 0 #DIV/0!

Profit Before Tax 454.35 378.76 608.32 -75.59

-

16.636954 229.56 60.608301

Extra-ordinary items 0 63.41 31.3 63.41 #DIV/0! -32.11

-50.6387

01

PBT (Post Extra-ord Items) 454.35 442.17 639.62 -12.18

-2.68075

27 197.4544.6547

71

Tax 159.22 132.44 80.8 -26.78

-16.8194

95 -51.64

-38.9912

41

Reported Net Profit 295.12 309.74 558.84 14.624.95391

71 249.180.4222

9

Total Value Addition 677.65 926.07 875.61 248.4236.6590

42 -50.46

-5.44883

22

Preference Dividend 0 0 0 0 #DIV/0! 0 #DIV/0!

Equity Dividend 86.8 86.8 194.68 0 0 107.88124.285

71

Corporate Dividend Tax 14.54 14.54 32.33 0 0 17.79122.352

13

Per share data (annualised) 0 #DIV/0! 0 #DIV/0!

Shares in issue (lakhs) 4,335.67 4,340.07 4,340.07 4.40.10148

37 0 0

Earnings Per Share (Rs) 6.81 7.14 12.88 0.334.84581

5 5.7480.3921

57

Equity Dividend (%) 200 200 400 0 0 200 100

Book Value (Rs) 49.09 53.99 64.97 4.99.98166

63 10.9820.3370

99

ANALYSIS & INTERPRETATION

1.Total income of the firm has increased because of increase in net sales and other income.

2.Stocks were also increased in 2009 and 2010.

3.total expenses have decreased in year 2010 ascompared to 2009.


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4. profit before tax has increased has decreased in 2010as compared to 2009.

COMPARITIVE BALANCE SHEET

Balance Sheet of Zee EntertainmentEnterprises

------------------- in Rs. Cr.

-------------------

Mar '08 Mar '09 Mar '10 inc/dec %inc/dec %

12 mths 12 mths 12 mths2008-2009

2008-2009

2009-2010

2009-2010

Sources Of Funds

Total Share Capital 43.36 43.4 43.4 0.04 0.092251 0 0Equity ShareCapital 43.36 43.4 43.4 0.04

0.092251 0 0

Share ApplicationMoney 0 0 5.5 0

#DIV/0! 5.5

#DIV/0!

Preference ShareCapital 0 0 0 0

#DIV/0! 0

#DIV/0!

Reserves 2,084.89 2,299.602,776.4

3 214.7110.298

39 476.8320.735

35RevaluationReserves 0 0 0 0

#DIV/0! 0

#DIV/0!

Networth 2,128.25 2,343.002,825.3

3 214.7510.090

45 482.33 20.586

Secured Loans 70.87 121.4 58.5 50.5371.299

56 -62.9

-51.812

2

Unsecured Loans 133.39 49.55 60.4 -83.84

-62.853

29 10.8521.897

07

Total Debt 204.26 170.95 118.9 -33.31

-16.307

65 -52.05

-30.447

5

Total Liabilities 2,332.51 2,513.952,944.2

3 181.447.7787

45 430.2817.115

69

Mar '08 Mar '09 Mar '10

12 mths 12 mths 12 mths

Application Of Funds

Gross Block 162.2 189.82 216.67 27.62 17.02836 26.85 14.14498Less: Accum. 40.08 49.89 58.29 9.81 24.476 8.4 16.837


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Depreciation 05 04

Net Block 122.12 139.93 158.38 17.8114.584

02 18.4513.185

16Capital Work inProgress 6.35 18.33 111.1 11.98

188.6614 92.77

506.1102

Investments 1,349.47 1,349.621,531.9

3 0.150.0111

15 182.3113.508

25

Inventories 236.41 319.48 453.13 83.0735.138

11 133.6541.833

6

Sundry Debtors 408.28 351.68 463.38 -56.6

-13.863

04 111.731.761

83Cash and BankBalance 22.21 110.43 300.29 88.22

397.2085 189.86

171.9279

Total CurrentAssets 666.9 781.59

1,216.80 114.69

17.19748 435.21

55.68265

Loans andAdvances 744.36 663.63 547.37 -80.73

-10.845

56-

116.26

-17.518

8

Fixed Deposits 0.01 0.01 0 0 0 -0.01 -100Total CA, Loans &Advances 1,411.27 1,445.23

1,764.17 33.96

2.406343 318.94

22.06846

Deffered Credit 0 0 0 0#DIV/0

! 0#DIV/0

!

Current Liabilities 384.98 298.94 383.38 -86.04

-22.349

21 84.4428.246

47

Provisions 171.74 140.22 237.96 -31.52

-18.353

32 97.7469.704

75

Total CL &Provisions 556.72 439.16 621.34

-117.56

-21.116

54 182.1841.483

74

Net Current Assets 854.55 1,006.071,142.8

3 151.5217.730

97 136.7613.593

49MiscellaneousExpenses 0.01 0.01 0 0 0 -0.01 -100

Total Assets 2,332.50 2,513.962,944.2

4 181.467.7796

36 430.2817.115

63

ContingentLiabilities 703.48 649.16

1,057.97 -54.32

-7.7216

13 408.8162.975

23

Book Value (Rs) 49.09 53.99 64.97 4.99.9816

66 10.9820.337

1


1.Total assets have increased in 2010 because of increase

in its cash balance and investments and inventories.2.total current liabilities and provisions have increasedbecause of increase in current liabilities and loans andadvances.

Common size profit & loss A/C


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Profit & Loss account of Zee EntertainmentEnterprises

Mar '08 Mar '09 Mar '10commonsize%

commonsize%

commonsize%

12 mths 12 mths 12 mths 2008 2009 2010

Income

Sales Turnover 1,041.99 1,210.24 1,278.74 100 100 100

Excise Duty 0 0 0 0 0 0

Net Sales 1,041.99 1,210.24 1,278.74 100 100 100

Other Income 75.77 56.92 106.187.2716628

764.7031993

658.30348624

4

Stock Adjustments 48.36 81.96 130.6763.824732

74143.99156

71123.064607

3

Total Income 1,166.12 1,349.12 1,515.592411.3316

791646.0712

541159.86071

8

Expenditure 0 0 0

Raw Materials 3.47 4.86 2.69 0 0 0

Power & Fuel Cost 0 0 0 0 0 0

Employee Cost 62.1 92.42 81.46 0 0 0Other ManufacturingExpenses 406.4 581.91 553.65

654.4283414

629.6364423

679.6587282

Selling and Admin Expenses 190.65 233.63 046.911909

4540.148820

26 0

Miscellaneous Expenses 18.5 18.11 240.519.7036454

24 7.751573 0

Preoperative Exp Capitalised 0 0 0 0 0 0

Total Expenses 681.12 930.93 878.31 0! 0 0

Mar '08 Mar '09 Mar '10

12months

12months

12months

Operating Profit 409.23 361.27 531.139.273889

3829.851103

9141.5330716

2

PBDIT 485 418.19 637.28640.09502

44734.69782

15600.188359

4

Interest 20.05 27.51 17.5341.459884

233.565153

73 13.4154741

PBDT 464.95 390.68 619.7539.871539

8128.958135

6740.8916659

5

Depreciation 10.6 11.92 11.43 0 0 0

Other Written Off 0 0 0 0 0 0

Profit Before Tax 454.35 378.76 608.32 0 0 0

Extra-ordinary items 0 63.41 31.3 068.610690

3338.4237662

7

PBT (Post Extra-ord Items) 454.35 442.17 639.62111.79872

0575.985977

21115.527860

6

Tax 159.22 132.44 80.8

83.514293

21

56.687925

35 0

Reported Net Profit 295.12 309.74 558.841595.2432

431710.3257

87 232.356243


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Total Value Addition 677.65 926.07 875.61 0 0 0

Preference Dividend 0 0 0 0 0 0

Equity Dividend 86.8 86.8 194.68 0 0 0

Corporate Dividend Tax 14.54 14.54 32.33 0 0 0

Per share data (annualised) 0 0 0

Shares in issue (lakhs) 4,335.67 4,340.07 4,340.07 0 0

Earning Per Share (Rs) 6.81 7.14 12.881.6641008

721.9763611

72.42515533

8

Equity Dividend (%) 200 200 40041.237113

447.825151

2562.7667587

2

Book Value (Rs) 49.09 53.99 64.97244.83790

52196.25590

69370.621791

2

ANALYSIS &INTERPRETATION

1. There is percentage change in total income of the firmas compared to2008 and 2009 in 2010.

2. Total income of the firm has increased because of increase in percentage of net sales and and other income.

3.Earning per share of the firm has also increased ascompared to 2008 and 2009 in 2010 which is 2.42 %.

COMMON SIZE BALANCE SHEET

Balance Sheet of ZeeEntertainment Enterprises

Mar '08 Mar '09 Mar '10commonsize %

commonsize%

commonsize%

12

months12

months12

months 2008 2009 2010

Sources Of Funds

Total Share Capital 43.36 43.4 43.41.85894165

51.72636687

31.47406962

1


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Equity Share Capital 43.36 43.4 43.41.85894165

51.72636687

31.47406962

1

Share Application Money 0 0 5.5 0 0 0

Preference Share Capital 0 0 0

Reserves 2,084.89 2,299.602,776.4

389.3839683

491.4735774

4 94.300717

Revaluation Reserves 0 0 0 0 0 0

Net worth 2,128.25 2,343.002,825.3

395.9615926

793.1999443

195.9615926

7

Secured Loans 70.87 121.4 58.53.03835782

14.82905387

91.98693716

2

Unsecured Loans 133.39 49.55 60.45.71873218

1 1.971001812.05147016

4

Total Debt 204.26 170.95 118.98.75709000

26.80005568

94.03840732

6

Total Liabilities 2,332.51 2,513.952,944.2

3 100 100 100

Mar '08 Mar '09 Mar '10



Gross Block 162.2 189.82 216.676.95391211

17.55063724

27.35911474

6

Less: Accum. Depreciation 40.08 49.89 58.291.71832797

41.98451844

91.97979784

3

Net Block 122.12 139.93 158.38 17.35941325.56611879

35.37931690

4

Capital Work in Progress 6.35 18.33 111.112.9354247

30.72912854

63.77346955

4

Investments 1,349.47 1,349.621,531.9

3 57.855091153.6850228

352.0314240

7

Inventories 236.41 319.48 453.1310.1354769

6 12.708237215.3903893

7

Sundry Debtors 408.28 351.68 463.38 58.0371865 6 54.1746256 7 43.7989735 1

Cash and Bank Balance 22.21 110.43 300.2945.2434304

3204.537877

4462.197937

5

Total Current Assets 666.9 781.591,216.8

028.5916398

731.0899934

8 41.3281526

Loans and Advances 744.36 663.63 547.3731.9125401

926.3977947

118.5912153

9

Fixed Deposits 0.01 0.01 00.00042872

50.00039777

9 0

Total CA, Loans & Advances 1,411.27 1,445.231,764.1

760.5046087

957.4881859

759.9193679

9

Deferred Credit 0 0 0 0 0 0

Current Liabilities 384.98 298.94 383.3816.5050375

111.8911995

413.0213569

5

Provisions 171.74 140.22 237.9624.4129186

35.57765437

88.08222155

8

Total CL & Provisions 556.72 439.16 621.341134.08026

167.6505021

958.7294535

8

Net Current Assets 854.55 1,006.071,142.8

336.6366559

51863.43767

41759.01185

2

Miscellaneous Expenses 0.01 0.01 00.00042872

50.00039777

9 0

Total Assets 2,332.50 2,513.962,944.2

4 100 100 100

Contingent Liabilities 703.48 649.161,057.9

730.1597849

5 25.822311535.9336736

6

Book Value (Rs) 49.09 53.99 64.972.10459976

62.14761630

12.20668901

5


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1.Total assets of the firm has increased in respectiveyears to 100%,which is a good sign for the firm.

2.current liabilities of the firm has also increased becauseof increase in loans and advances and current liabilities to59.91%as compared to 57 % in 2009.

BALANCESHEET

TRENDANALYSIS

Balance Sheet of ZeeEntertainment Enterprises

Mar '08 Mar '09 Mar '10trend

%trend

%

12months

12months

12months

2009-2008

2010-2008

Sources Of Funds

Total Share Capital 43.36 43.4 43.4100.0

92100.09

2

Equity Share Capital 43.36 43.4 43.4100.0

92100.09

2

Share Application Money 0 0 5.5 0 0

Preference Share Capital 0 0 0 0 0

Reserves 2,084.89

2,299.6

0

2,776.4

3

110.2

98

133.16

9Revaluation Reserves 0 0 0 0 0

Networth 2,128.252,343.0

02,825.3

3110.0

9132.75

4

Secured Loans 70.87 121.4 58.5 171.382.545

5

Unsecured Loans 133.39 49.55 60.437.14

6745.280

8

Total Debt 204.26 170.95 118.983.69

2458.210

1

Total Liabilities 2,332.512,513.9

52,944.2

3107.7

79126.22

6

Mar '08 Mar '09 Mar '10



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Gross Block 162.2 189.82 216.67117.0

28133.58

2

Less: Accum. Depreciation 40.08 49.89 58.29124.4

76145.43

4

Net Block 122.12 139.93 158.38114.5

84129.69

2

Capital Work in Progress 6.35 18.33 111.1288.6

611749.6

1

Investments 1,349.471,349.6

21,531.9

3100.0

11113.52

1

Inventories 236.41 319.48 453.13135.1

38191.67

1

Sundry Debtors 408.28 351.68 463.3886.13

7113.49

6

Cash and Bank Balance 22.21 110.43 300.29497.2

081352.0

5

Total Current Assets 666.9 781.591,216.8

0117.1

97182.45

6

Loans and Advances 744.36 663.63 547.3789.15

4473.535

7

Fixed Deposits 0.01 0.01 0 100 0

Total CA, Loans & Advances 1,411.271,445.2

31,764.1

7102.4

06125.00

6

Deferred Credit 0 0 0 0 0

Current Liabilities 384.98 298.94 383.3877.65

0899.584

4

Provisions 171.74 140.22 237.9681.64

67138.55

8

Total CL & Provisions 556.72 439.16 621.3478.88

35111.60

7

Net Current Assets 854.551,006.0

71,142.8

3117.7

31133.73

5

Miscellaneous Expenses 0.01 0.01 0 100 0

Total Assets 2,332.502,513.9

62,944.2

4107.7

8126.22

7

Contingent Liabilities 703.48 649.161,057.9

792.27

84150.39

1

Book Value (Rs) 49.09 53.99 64.97109.9

82132.34

9


1.The networth of the firm has increased to 132.1% in2010 as compared to 2009 because of increase inreserves.

2.secured loans have decreased and unsecured loans haveincreased as a result the total debt of the firm hasincreased which is not good for the company.

3.Fixed deposits have decreased because of increase inloans and advances and current liabilities of the firm.


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Corporate Dividend Tax 14.54 14.54 32.33 100222.352

1

Per share data (annualised) 0 0

Shares in issue (lakhs) 4,335.67 4,340.07 4,340.07100.101

48100.101

5

Earnings Per Share (Rs) 6.81 7.14 12.88104.845

81189.133

6

Equity Dividend (%) 200 200 400 100 200

Book Value (Rs) 49.09 53.99 64.97109.981

67132.348

7


1. Total income of the firm has increased because increasein net sales and other income of the firm in 2010.

2. Total expenses of the firm have decreased in 2010because of decrease in employee cost and selling anddistribution expenses.

3. Net profit of the firm has increased in 2010 to 189.36%as compared to 2009.

4. Earnings per share of the firm has increased to 189%in2010 as compared to 2009 because of increase in theearning capacity of the firm.

LIQUIDITY RATIO

1. Current ratio =current assets/ current liabilities


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year 2008 2009 2010current assets 666.9 781.59 1216.8

current liabilities 556.72 439.16 621.34current ratio 1.19 1.77 1.95

ANALYSIS

1. The ideal norm is 2:1 of the current ratio.

(i) In the year 2008 current ratio was 1.19 which is lessthan the standard norm of 2:1which means thecurrent position of the firm is not so good and issatisfactory.

(ii) In the year 2009 the current ratio has decreased ascompared to 2008 but in 2010 it has increased tosome extent but is still less than the standard normof 2:1 which means firms short term obligations isvery weak.

(iii) The reason behind the decrease in currentratio is due to increase in the current liabilities of the firm then the current assets.

2. Quick Assets Ratio =Quick Assets/CurrentLiabilities

Quick assets =Current assets-Inventories

year 2008 2009 2010

current assets 666.9 781.59 1216.8inventories 236.41 319.48 453.13current liabilities 556.72 439.16 621.34

Quick Ratio 0.77 1.05 1.22

ANALYSIS

(i). In 2008 the quick ratio was 0.77 which is very less thanthe standard norm of 1:1.In the year 2009 it has increasedsomewhat to 1.05 which has again increased in 2010 to


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1.22. it means the position of the company is increasingyear by year which is good sign for the company and it isgreater than the standard norm set.

(ii) The increase in the quick ratio of the firm in 2009 and2010 is due to increase in the amount of the inventory andcurrent assets of the firm in the year 2009 and 2010.

3. Absolute liquid ratio =Cash + bank/currentliabilities

year 2008 2009 2010Cash and bank balance 22.21 110.43 300.29

current liabilities 556.72 439.16 621.34Absolute liquid ratio 0.03 0.25 0.48

(i) In the year 2008 the absolute liquid ratio was 0.03which has increased

to 0.25 in the year 2009 and 0.48 in the year 2010.itmeans the ratio has

Increased subsequently which shows the position of the firm is improving year byyear and is more than the standard set of 0.5:1

(ii) The increase in the absolute liquid ratio is due toincrease in the cash and bank balance of the firmwhich has lead to increase in the absolute liquid ratio.


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ACTIVITY RATIO

1. Inventory turnover Ratio =Net sales/Averageinventory

year 2008 2009 2010Net sales 1041.99 1210.24 1278.74Inventory 236.41 319.48 453.13

Inventory turnover ratio 4.4 3.78 2.82

ANALYSIS

(i)In the year 2008 the inventory turnover ratio was4.40 which is greater than the ratio in 2009 and 2010but in 2009 and 2010 it has decreased very muchwhich shows that the firm is going into recession .

(ii) The decrease in the ratio is due to the decrease in the

cost of goods sold in the respective year.(iii)The inventory holding has increased which is agood sign for the company.

2. DEBTORS TURNOVER RATIO =Total sales/TotalDebtors

year 2008 2009 2010 Total sales 1041.99 1210.24 1278.74

Total Debtors 408.28 351.68 463.38Debtor turnover ratio 2.55 3.44 2.75


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ANALYSIS

(i) The higher the debtor turnover ratio better it is forthe company. In the ratio in 2008 was 2.55 which is

less than in the year 2009 and 2010,In the year 2009the debtor turnover ratio has increased, but it hasagain decreased in the year 2010 which is not a goodsign for the company.

(ii) The decrease in the debtor turnover ratio is due toincrease in the number of debtors of the firm.

3. ASSET TURNOVER RATIO = Net Sales/Total Assets

year 2008 2009 2010Net Sales 1041.99 1210.24 1278.74

Total Assets 2332.5 2513.96 2944.24Asset Turnover Ratio 0.44 0.48 0.43

ANALYSIS

(i) The asset turnover ratio of the firm was 0.44 which isless than 2009 but is more than 2010.it means 2009has been a good year for the firm due to increase inthe assets of the firm in 2009.it means the firm hasthe capability to pay of its long term liabilities whichis a good sign for the company.

SOLVENCY RATIO

1. DEBT EQUITY RATIO = Total Debt/ Shareholders fund

Shareholders fund =Equity share + preference share +

reserve & surplus


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year 2008 2009 2010 Total Debt 204.26 170.95 118.9

Shareholders fund 2128.25 2343 2819.83Debt Equity Ratio 0.09 0.07 0.04

ANALYSIS

(i) The debt equity ratio of the firm was 0.09 but it hasdecreased in the year 2009 and 2010 with figures of 0.07 and 0.04 which is a good sign for the firmbecause the lower the debt equity ratio better it is forthe company.

(ii) The decrease in the debt equity ratio is duedecrease in the total debt of the firm.

2. PROPRIETORY RATIO = Shareholders fund/TotalAsset

year 2008 2009 2010shareholders fund 2128.25 2343 2819.83

Total Asset 2332.5 2513.96 2944.24Proprietory Ratio 0.91 0.93 0.95

ANALYSIS

(i)The proprietory ratio of the firm in 2008 was 0.91which has increased in 2009 and 2010 to 0.93 and0.95.

(ii) The increase in the ratio is due to increase in thetotal assets of the firm year by year which is a goodsign for the company.


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PROFITABILITY RATIO

1. GROSS PROFIT RATIO = GROSS PROFIT/ NET SALES100

year 2008 2009 2010

gross profit 1337.03 1617.28 1810.64net sales 1041.99 1210.24 1278.74

gross profit ratio 1.28 1.33 1.41

ANALYSIS

(i) The gross profit ratio of the firm during 2008 was1.28 which has increased in 2009 and 2010 to 1.33and 1.41.

(ii) The increase is due to increase in the gross profitand net sales of the company which means the firm isgoing very high.

3. NET PROFIT RATIO = NET PROFIT/NET SALES100

year 2008 2009 2010net profit 295.12 309.74 558.84net sales 1041.99 1210.24 1278.74

net profit ratio 0.28 0.25 0.43


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ANALYSIS

(i)The net profit ratio in the year 2008 was 0.28 whichhas increased in the respective year of 2009 and 2010

which shows that there is an increase in the net profitof the company.

(ii) The increase in the net profit ratio is due to theincrease in the net profit and net sales of thecompany.

4. OPERATING PROFIT RATIO =OPERATING PROFIT/NETSALES100

year 2008 2009 2010operating profit 409.23 361.27 531.1

net sales 1041.99 1210.24 1278.74operating profit ratio 0.39 0.29 0.41

ANALYSIS

(i)The operating profit ratio in the year 2008 was 0.39which has decreased to 0.29 in 2009 but hasrespectively increased in the year 2010 which meansthe firm is growing in a good position.

(ii) The increase in the ratio is due to the increase in theoperating profit and net sales of the firm.


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2008 2009 201012 months 12 months 12 months

Net Profit Before Tax 456.92 376.19 608.34

Net Cash From OperatingActivities 169.72 181.47 164.24

Net Cash (used in)/from -5.47

109.45 344.03Investing Activities

Net Cash (used in)/fromFinancing Activities -145.92 -202.7 -286.66

Net (decrease)/increase In 18.33

88.22 221.61Cash and Cash Equivalents

Opening Cash & CashEquivalents 3.88 22.21 110.43

Closing Cash & CashEquivalents 22.21 110.43 332.05

ANALYSIS

(i) The net cash from operating activities in the year2008 was 169.72 which has increased in the year2009 to 181.47 but has again decreased in the recentyear to 164.24.

(ii) The decrease in the cash from operating activities inthe recent year is due to increase in the depreciationand reserves of the firm and increase in the currentliabilities as well as the decrease in the currentassets of the firm.


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(iv) The increase in the cash from investing activitiesin the year 2010 is too much than the increase in theyear 2009 because there has been the sale of assetsin large number and fixed assets have beenpurchased, so there is an increase in cash frominvesting activities during the respective years.

(v) The cash from financing activities has gonenegative due to the bank loan borrowed by the firm,non payment of short term borrowing and dividendhas been paid, so the cash generated from financingactivities has gone negative.

(vi) Cash and bank balance of the firm has increasedwhich shows what amount of cash has been outflowed and what amount has inflow into thecompany.

STATEMENT OF CHANGES IN WORKING CAPITAL


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SOURCES OF FUNDS AmountAPPLICATION OFFUNDS Amount

Fund from operation 725.44Purchase of fixedassets 18.45

Issue of share capital 0 Repayment of loan -116.26Raising long termloans -295.14

Increase in workingcapital 528.11

TOTAL 430.3 430.3

ANALYSIS

(I (i) The statement of changes in working capital shows the currethe Current liabilities of the firm for the particular year2009 and 2010, after analysing the current assets

changes in working capital was found which showed a netincrease in the working capital of the firm.

(ii) Adjusted profit and loss account shows theadjustment made to the profit and loss of the firm tofind out the fund from operations which is necessary tomake fund flow statement regarding the firm.(iii) The fund flow statement shows the sources of funds

and application of funds which shows from where thefunds have been provided the total of both the fundsare same which shows that the fund flow statementmade is true.


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