You are on page 1of 10

1 The following cost of sales statements are available for D D Manufacturers

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16

Statement of Cost of Sales


Items
Opening Raw material inventory
Purchases
Closing Raw material inventory
Raw material Consumed (1+2-3)
Wages and Salaries
Other Mfg Expenses
Depreciation
Total Cost (4+5+6+7)
Opening Work in process inventory
Closing Work in process inventory
Cost of Production
Opening finished goods inventory
Closing finished goods inventory
Cost of goods sold
Selling, admin & other exp
Cost of sales (14+15)

Sales
PBIT
Debtor:

Opening
Closing
Creditors: Opening
Closing

2001
5.20
25.60
6.80
24.00
8.10
3.20
1.80
37.10
1.80
2.00
36.90
3.20
2.80
37.30
1.30
38.60

2002
6.80
33.50
7.60
32.70
11.20
4.40
2.00
50.30
2.00
3.10
49.20
2.80
3.60
48.40
1.90
50.30

(Rs Crores)
2003
7.60
45.60
9.20
44.00
15.30
5.80
2.60
67.70
3.10
4.60
66.20
3.60
2.90
66.90
2.10
69.00

2001
45.90
7.30
8.30
10.80
3.70
4.60

2002
60.10
9.80
10.80
14.90
4.60
8.00

2003
82.70
13.70
14.90
20.50
8.00
12.00

Statement of Avg Working Capital Requirement of Ms X & Co.


Current Assets
Weekly
Monthly Quarterly Yearly
Average
Stock of Finished products
5000
5000
Stock of stores,materials etc
8000
8000
Debtors
Inland Sales
6 wks crd
312000
36000
1 week
Export Sales
78000
2250
Advance payment of Sundry Exp
1
8000
2000
53250
Current Liabilities
1 week
Wages
260000
7500
1 week
Stock, materials etc
48000 1384.615
Rent, royalities etc
6 month
10000
5000
Clerical staff
month
62000 2583.333
Manager
month
4800
200
1 month
Miscellaneous exp
48000
6000
22667.95
Average Net working capital required
Add 10% for contigency

30582.05
3058.205
33640.26

CA/FA
0.10
0.25
0.40
0.70
1.00
1.50
2.50

Cost of Liquidity
138000
275000
550000
1100000
2200000
4140000
6890000

Cost of Illiquidity Total


2200000
2338000
1650000
1925000
1100000
1650000
830000
1930000
690000 8000000
2890000
550000
4690000
7000000
276000
7166000
6000000
5000000
4000000
3000000
2000000
1000000
0
1

Cost of Liquidity
Cost of Illiquidity
Total

RELIANCE INDUSTRIES LTD. CASE ON RATIO ANALYSIS


2001

2000

1999

1998

1997

1996

23,024.17
2,578.91
20,445.26
976.79
21,422.05
5,561.72
1,565.11
3,996.61
1,215.99
2,780.62
135
2,645.62

15,847.16
2,451.53
13,395.63
976.56
14,372.19
4,746.61
1,278.36
3,468.25
1,008.00
2,460.25
57
2,403.25

10,624.15
1,929.46
8,694.69
629.19
9,323.88
3,317.54
855.04
2,462.50
728.81
1,733.69
30
1,703.69

9,719.18
1,893.13
7,826.05
363.09
8,189.14
2,886.54
667.32
2,219.22
503.55
1,715.67
63
1,652.67

6,441.65
1,283.85
5,157.80
318.78
5,476.58
1,947.81
410.14
1,537.67
169.97
1,367.70
45
1,322.70

5,726.66
1,507.83
4,218.83
271.85
4,490.68
1,751.91
336.51
1,415.40
110.13
1,305.27
0
1,305.27

447.85
4.77
46.2
24.63
113.86

384.65
35.57
46.22
22.04
103.65

350.16
23.39
40.86
17.56
100.12

326.81
10.33
63.64
16.94
96.83

299.24
0
0
28.85
184.77

276.22
28
0
27.87
179.07

1,053.49
0
13,711.88
14,765.37

1,053.45
292.95
12,636.35
13,982.75

933.39
252.95
11,183.00
12,369.34

931.9
187.95
10,862.75
11,982.60

458.45
0
8,012.49
8,470.94

458.23
200
7,747.07
8,405.30

68.66
0
3,761.98
237.76
6,067.39
10,135.79

158.51
1,400.94
3,779.85
648.81
5,532.13
11,520.24

46.24
1,527.00
3,578.04
327.03
5,206.98
10,685.29

57.41
200.53
2,413.54
65.98
5,509.87
8,247.33

859.7
950.48
2,012.98
425.92
3,376.40
7,625.48

411.95
607.19
1,780.95
591.88
1,329.48
4,721.45

Current Liabilities & Provisions


Creditors
3,859.22
Provisions
863.5
Other
251.58
Total Current Liab
4,974.30
Total Liab
29,875.46

2,953.96
265.8
646.07
3,865.83
29,368.82

3,338.73
544.37
1,218.27
5,101.37
28,156.00

3,095.04
475.99
586.97
4,158.00
24,387.93

2,386.23
352.23
701.26
3,439.72
19,536.14

1,305.32
282.02
324.29
1,911.63
15,038.38

ASSETS
Fixed assets
Gross Block
Less: Accum Dep
Net Block
Capital Work in Prg

24,330.95
9,214.06
15,116.89
331.42

18,650.33
6,691.93
11,958.40
3,437.83

17,848.33
4,944.47
12,903.86
2,069.43

10,955.92
3,491.20
7,464.72
3,708.63

6,885.50
2,141.34
4,744.16
4,488.71

EARNINGS
Sales
Less:Excise
Net Sales
Other Income
Total Income
PBDIT(EBITDA)
Depreciation
PBIT
Interest
PBT
Tax
PAT
Additional Information
Equity Div
Preference Div
Corporate Div Tax
EPS(Rs)
Book Value (Rs)
CAPITAL & LIABILITIES
Total Shareholders Fund
Equity Share Cap
Preference Cap Paid
Reserves & Surplus
Borrowings
Term Loans - Institutions
Term Loans - Banks
Non Convertible Debten
Working Capital Advance
Other Loans
Total Borrowings

25,355.99
11,841.53
13,514.46
512.38

Total Fixed Asst


Investments
Current Assets
Total

Current ratios
CA/CL
Activity ratios
NS/NA
NS/NFA
NS/CA
NS/NCA
Capital structure ratios
D/E
NA/NW
D/CE
TIE
Profitability analysis
Margin: EBIT/NS
ROI: EBIT/NA
ROE: NP/NW
Retention: RE/PAT
Sustainable growth

14,026.84
6,726.11
9,122.51
29,875.46

15,448.31
6,066.56
7,853.95
29,368.82

15,396.23
4,294.59
8,465.18
28,156.00

14,973.29
4,282.33
5,132.31
24,387.93

11,173.35
4,455.68
3,907.11
19,536.14

9,232.87
1,952.91
3,852.60
15,038.38

2001

2000

1999

1998

1997

1996

1.83

2.03

1.66

1.23

1.14

2.02

0.82
1.51
2.24
4.93

0.53
0.89
1.71
3.36

0.38
0.73
1.03
2.58

0.39
0.61
1.52
8.03

0.32
0.69
1.32
11.04

0.32
0.89
1.10
2.17

0.69
1.69
0.41
4.57

0.82
1.82
0.45
4.71

0.86
1.86
0.46
4.55

0.69
1.69
0.41
5.73

0.90
1.90
0.47
11.46

0.56
1.56
0.36
15.91

19.5%
16.05%
17.92%
81.15%
14.54%

25.9%
13.60%
17.19%
80.59%
13.85%

28.3%
10.68%
13.77%
75.68%
10.42%

28.4%
10.97%
13.79%
75.75%
10.45%

29.8%
9.55%
15.61%
77.38%
12.08%

33.5%
10.78%
15.53%
76.69%
11.91%

1995
5,388.15
1,517.13
3,871.02
312.59
4,183.61
1,622.60
278.24
1,344.36
279.51
1,064.85
0
1,064.85

199.34
0.83
0
23.34
157.66

455.86
5.5
6,731.29
7,192.65
284.79
160.27
1,273.04
405.63
816.19
2,939.92

1,118.23
201.57
76.67
1,396.47
11,529.04

5,315.40
1,805.78
3,509.62
3,075.09

6,584.71
1,993.41
2,950.92
11,529.04
1995
2.11
0.38 NA = TTL FIXD ASSTS + INVSTMENT + NCA(I.E. CA-CL)
1.10
1.31
2.49

0.41 presuming the total borrowings are long term


1.41
0.29 CE = NW + BORROWINGS = NA
5.81 Times Interest Earned ratio = EBIT / INT

34.7%
13.27%
14.80% Net profit in respect to
81.20% Company has maintained the retaintion ratio. Which is good when its growing
12.02% Sustainable growth = growth in equity = ROE x Retention
% is increasing which is a good sign. Company is ret

s increasing which is a good sign. Company is retaining the profit in times of growth which is fruitful for shareholders also