FINANCIAL STATEMENT ANALYSIS OF ISMT LIMITED

Click to edit Master subtitle style Prepared By

(213) (214) (215) (216) (217) (218)

ANIL KUMAR 3/22/12 PUNEET SAHOO HIMANSHI SINGH SAURABH SINGH PRAGYA PATTNAIK SOUGAT KUMAR PANDA

INTRODUCTION

3/22/12

ISMT : The Indian Seamless Metal Tubes Ltd. 1995 : Launched Indian Seamless Steel & Alloy Ltd.

2005 : ISMT+ ISSAL ltd. = ISMT ltd. 2008 : Added new PQF Mill 2010 : Participated as an exhibitor in Power-Gen Europe

GROUPS OF COMPANIES

3/22/12

ISMT North America Taneja Aerospace & Aviation Ltd. ISMT Europe, Sweden
PRODUCT RANGE :

Tubes Steels

Machined rings

3/22/12 OBJECTIVE OF THE STUDY

To understand and interpret the financial position of the company. To give independent opinion about the financial statement. To study the trends of the performance during the study period(2010-2011).

3/22/12 LIMITATION OF THE STUDY

The study is limited to ISMT only. The study is limited to 2 years financial statement. The study is limited to secondary data only.

METHODOLOGY

3/22/12

Inter firm comparison is better carried out if it is based on ratios. Therefore ratio is being taken as methodology for interpretation of data. In this regard the following ratios were considered:Profitability Ratio Liquidity Ratio Activity Ratio Long term Solvency Ratio

3/22/12

FINANCIAL ANALYSIS OF DATA OF ISMT LTD. FOR TWO YEARS ( 2010 AND 2011)

GENERAL PROFITABILITY RATIO

3/22/12

Gross Profit Ratio : Gross Profit / Net Sales * 100

Net Profit Ratio : Net Profit / Net Sales*100

3/22/12

Years Net Profit

Net Sales

Net Profit Ratio

2010 48.49 2011 78.13

1249.06 3.88 1702.42 4.58

Interpretation: An increase in the Net Profit Ratio was seen from the graph. It increased from 3.88 in 2010 to 4.58 in 2011.

LIQUIDITY RATIO 3/22/12

Overall Profitability Analysis 3/22/12

A) Return on shareholder :

Net Profit/Shareholder fund*100

RETURN ON SHARE HOLDER OF 2010=8.61

RETURN ON SHARE HOLDER OF 2011=13.03

3/22/12

B) Return on Total Assets

Net Profit before interest and tax /Total Asset*100 RETYUN ON TOTAL ASSET IN2010=5.676 RETURN ON TOTAL ASSET IN2011=7.271 Interpetation: In comparission to 2010 Return of total asset is 5.676

3/22/12

(C) Return on Capital Employed :

Profit after tax /Capital Employed*100 RETURN ON TOTAL CAPITAL EMPLOYED IN 2010=175.80 RETURN ON TOTAL CAPITAL EMPLOYED

3/22/12

ACTIVITY ANALYSIS SALES RATIOS

A.TOTAL ASSETS TURN OVER RATIO=NET SALES/TOTAL ASSETS TOTAL ASSETS TURN OVER RATIO IN2010=0.53 TOTAL ASSETS TURN OVER RATIO IN2011=0.61 INTERPRETATIONS: TOTAL ASSETS TURN OVER RATIO OF 2011 IS MORE COMPARED TO 2010

3/22/12

ACTIVITY ANALYSIS SALES RATIOS

(B)FIXED ASSET TURN OVER RATIO=NET SALES/FIXED ASSET FIXED ASSET TURN OVER RATIO IN 2010=0.99 FIXED ASSET TURN OVER RATIO IN2011=1.22 INTERPRETATION: FIXED ASSET TURN OVER RATIO OF 2011 IS MORE AS COMPARED TO 2010

3/22/12

ACTIVITY ANALYSIS SALES RATIOS

(C)CURRENT ASSET TURN OVER RATIO=NET SALES/CURRENT ASSETS CURRENT ASSET TURN OVER RATIO IN 2010=1.20 CURRENT ASSET TURN OVER RATIO IN 2011=1.29 INTERPRETATION: CURRENT ASSET TURN OVER RATIO OF 2011 IS MORE AS COMPARED TO 2010