CIA 3 – COMPONENT 1

FINANCIAL ANALYSIS

COST & MANAGEMENT

ACCOUNTING

Submitted by:
Disha Aggarwal – 1820438
Kanika Bothra – 1820441
Nikita Agrawal – 1820443
Muskan Chaudhary – 1820483
INDUSTRY OVERVIEW – TEXTILE

India’s textiles sector is one of the oldest industries in Indian economy dating back several
centuries. India's overall textile exports during FY 2017-18 stood at US$ 39.2 billion in FY18
and is expected to increase to US$ 82.00 billion by 2021. India’s textile and apparel exports
stood at US$ 38.70 billion in FY19 and is expected to increase to US$ 82.00 billion by 2021
from US$ 11.92 billion in FY20 (up to July 2019).
The Indian textiles industry is extremely varied, with the hand-spun and hand-woven textiles
sectors at one end of the spectrum, while the capital-intensive sophisticated mills sector at the
other end of the spectrum. The decentralised power looms/ hosiery and knitting sector form the
largest component of the textiles sector. The close linkage of the textile industry to agriculture
(for raw materials such as cotton) and the ancient culture and traditions of the country in terms
of textiles make the Indian textiles sector unique in comparison to the industries of other
countries. The Indian textile industry has the capacity to produce a wide variety of products
suitable to different market segments, both within India and across the world.

COMPANY OVERVIEW

1. BOMBAY DYEING

Bombay Dyeing was established in 1879 by Mr Nowrosjee Wadia as a small operation

of Indian spun cotton yarn dip dyed by hand. Over the period of more than a century, it
has grown to be one of the most recognised brands in the country.
The company specialises in linens, towels, home furnishings, leisure clothing, kids
wear and a whole range of other products which are available in over 350 exclusive
Bombay Dyeing Retail or 2,000 multi-brand stores.
Bombay Dyeing also has a polyester division which is engaged in manufacture of 100
per cent virgin Polyester Staple Fibre and Textile grade Polyethylene Terephthalate
(PET) chips. It uses NGSSS technology from Invista Polyester Technologies and
Chemtex International Inc, USA.
2. RAYMOND

Raymond Ltd is the largest integrated manufacturer of fabric in the world based
in Mumbai, Maharashtra. It has over 60% market share in suiting in India. It is also
India’s biggest woollen fabrics maker. Textile division of the company has a
distribution network of more than 4,000 multi-brand outlets and over 637 exclusive
retail shops in the domestic market itself. Suitings are available in India in over 400
towns through 30,000 retailers and an exclusive chain is present in over 150 cities
across India. Its products exports to over 55 countries including US, Canada, Europe,
Japan and the Middle East. It has more than 20,000 design and colours of suiting fabric
which makes it one of largest collection of designs and colours by single company. It
was listed as India's most trusted apparel brand by The Brand Trust Report in 2015.
ANALYSIS AND INTERPRETATION OF FINANCIAL STATEMENTS

BOMBAY DYEING

Comparative Balance Sheet

(₹ in Crores)
BALANCE SHEET OF BOMBAY DYEING
AND MANUFACTURING COMPANY (in ABSOLUTE PERCENTAGE
Rs. Cr.) Mar-19 Mar-18 CHANGE CHANGE
12 mths 12 mths
EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share Capital 41.31 41.31 0 0.00%
TOTAL SHARE CAPITAL 45.2 41.31 3.89 9.42%
Reserves and Surplus 139.31 595.34 -456.03 -76.60%
TOTAL RESERVES AND SURPLUS 139.31 595.34 -456.03 -76.60%
TOTAL SHAREHOLDERS FUNDS 184.51 636.65 -452.14 -71.02%
NON-CURRENT LIABILITIES
Long Term Borrowings 3,369.49 2,230.32 1139.17 51.08%
Deferred Tax Liabilities [Net] 0 0 0
Other Long Term Liabilities 7.97 15.16 -7.19 -47.43%
Long Term Provisions 17.77 16.22 1.55 9.56%
TOTAL NON-CURRENT LIABILITIES 3,395.23 2,261.70 1133.53 50.12%
CURRENT LIABILITIES
Short Term Borrowings 574.39 414.83 159.56 38.46%
Trade Payables 523.01 351.11 171.9 48.96%
Other Current Liabilities 443.71 344.9 98.81 28.65%
Short Term Provisions 57.03 46.77 10.26 21.94%
TOTAL CURRENT LIABILITIES 1,598.14 1,157.61 440.53 38.06%
TOTAL CAPITAL AND LIABILITIES 5,177.88 4,055.96 1121.92 27.66%

ASSETS
NON-CURRENT ASSETS
Tangible Assets 523.75 552.17 -28.42 -5.15%
Intangible Assets 0.21 0.11 0.1 90.91%
Capital Work-In-Progress 4.81 74.04 -69.23 -93.50%
FIXED ASSETS 532.4 630 -97.6 -15.49%
Non-Current Investments 1,061.61 950.24 111.37 11.72%
Deferred Tax Assets [Net] 0 0 0
Long Term Loans And Advances 0.05 0.13 -0.08 -61.54%
Other Non-Current Assets 111.4 48.58 62.82 129.31%
TOTAL NON-CURRENT ASSETS 1,705.46 1,628.95 76.51 4.70%
CURRENT ASSETS
Current Investments 0 0 0
 Inventories 2,200.52 409 1791.52 438.02%
Trade Receivables 1,092.22 212.36 879.86 414.32%
Cash And Cash Equivalents 74.5 133.38 -58.88 -44.14%
Short Term Loans And Advances 0.61 1.86 -1.25 -67.20%
Other Current Assets 104.57 1,670.41 -1565.84 -93.74%
TOTAL CURRENT ASSETS 3,472.42 2,427.01 1045.41 43.07%
TOTAL ASSETS 5,177.88 4,055.96 1121.92 27.66%

Interpretation: The management should analyse the reasons for decline in the shareholders’
fund and increase in the liabilities of the company.
However, there is a increase in the total assets of the company from 2018 to 2019.

Common Size Balance Sheet

(₹ in Crores)
BALANCE SHEET OF BOMBAY
DYEING AND MANUFACTURING
COMPANY (in Rs. Cr.) Mar-19 Mar-18
PERCENTAGE PERCENTAGE
12 mths CHANGE 2019 12 mths CHANGE 2018
EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share Capital 41.31 0.80% 41.31 1.02%
TOTAL SHARE CAPITAL 45.2 0.87% 41.31 1.02%
Reserves and Surplus 139.31 2.69% 595.34 14.68%
TOTAL RESERVES AND SURPLUS 139.31 2.69% 595.34 14.68%
TOTAL SHAREHOLDERS FUNDS 184.51 3.56% 636.65 15.70%
NON-CURRENT LIABILITIES 0.00% 0.00%
Long Term Borrowings 3,369.49 65.07% 2,230.32 54.99%
Deferred Tax Liabilities [Net] 0 0.00% 0 0.00%
Other Long Term Liabilities 7.97 0.15% 15.16 0.37%
Long Term Provisions 17.77 0.34% 16.22 0.40%
TOTAL NON-CURRENT LIABILITIES 3,395.23 65.57% 2,261.70 55.76%
CURRENT LIABILITIES 0.00% 0.00%
Short Term Borrowings 574.39 11.09% 414.83 10.23%
Trade Payables 523.01 10.10% 351.11 8.66%
Other Current Liabilities 443.71 8.57% 344.9 8.50%
Short Term Provisions 57.03 1.10% 46.77 1.15%
TOTAL CURRENT LIABILITIES 1,598.14 30.86% 1,157.61 28.54%
TOTAL CAPITAL AND LIABILITIES 5,177.88 100.00% 4,055.96 100.00%

ASSETS
NON-CURRENT ASSETS
Tangible Assets 523.75 10.12% 552.17 13.61%
Intangible Assets 0.21 0.00% 0.11 0.00%
 Capital Work-In-Progress 4.81 0.09% 74.04 1.83%
FIXED ASSETS 532.4 10.28% 630 15.53%
Non-Current Investments 1,061.61 20.50% 950.24 23.43%
Deferred Tax Assets [Net] 0 0.00% 0 0.00%
Long Term Loans And Advances 0.05 0.00% 0.13 0.00%
Other Non-Current Assets 111.4 2.15% 48.58 1.20%
TOTAL NON-CURRENT ASSETS 1,705.46 32.94% 1,628.95 40.16%
CURRENT ASSETS 0.00% 0.00%
Current Investments 0 0.00% 0 0.00%
Inventories 2,200.52 42.50% 409 10.08%
Trade Receivables 1,092.22 21.09% 212.36 5.24%
Cash And Cash Equivalents 74.5 1.44% 133.38 3.29%
Short Term Loans And Advances 0.61 0.01% 1.86 0.05%
Other Current Assets 104.57 2.02% 1,670.41 41.18%
TOTAL CURRENT ASSETS 3,472.42 67.06% 2,427.01 59.84%
TOTAL ASSETS 5,177.88 100.00% 4,055.96 100.00%

Interpretation: The management should analyse the reasons for decline in the shareholders’
fund and increase in the liabilities of the company.
However, there is a increase in the total assets of the company from 2018 to 2019.

Comparative Profit & Loss Statement

(₹ in Crores)
PROFIT & LOSS ACCOUNT OF BOMBAY
DYEING AND MANUFACTURING ABSOLUTE PERCENTAGE
COMPANY (in Rs. Cr.) Mar-19 Mar-18 CHANGE CHANGE
12 mths 12 mths
INCOME
REVENUE FROM OPERATIONS [GROSS] 4,192.31 2,612.99 1,579.32 60.44%
Less: Excise/Sevice Tax/Other Levies 0 30.43 -30.43 -100.00%
REVENUE FROM OPERATIONS [NET] 4,192.31 2,582.56 1,609.75 62.33%
TOTAL OPERATING REVENUES 4,429.76 2,662.32 1,767.44 66.39%
Other Income 40.22 51.25 -11.03 -21.52%
TOTAL REVENUE 4,469.98 2,713.57 1,756.41 64.73%
EXPENSES
Cost Of Materials Consumed 1,177.03 968.27 208.76 21.56%
Operating And Direct Expenses 498.52 703.93 -205.41 -29.18%
Changes In Inventories Of FG,WIP And
Stock-In Trade 494.4 12.03 482.37 4009.73%
Employee Benefit Expenses 94.66 87.31 7.35 8.42%
Finance Costs 489.7 412.51 77.19 18.71%
Depreciation And Amortisation
Expenses 29.79 29.88 -0.09 -0.30%
Other Expenses 233.08 144.68 88.40 61.10%
 TOTAL EXPENSES 3,238.08 2,523.13 714.95 28.34%
PROFIT/LOSS BEFORE EXCEPTIONAL,
EXTRAORDINARY ITEMS AND TAX 1,231.90 190.44 1,041.46 546.87%
Exceptional Items 3.87 -153.25 157.12 -102.53%
PROFIT/LOSS BEFORE TAX 1,235.77 37.19 1,198.58 3222.86%
TAX EXPENSES-CONTINUED
OPERATIONS 0.00
Current Tax 7.64 0 7.64
Less: MAT Credit Entitlement 0 0 0.00
Deferred Tax 0 0 0.00
Tax For Earlier Years -1.85 2.78 -4.63 -166.55%
TOTAL TAX EXPENSES 5.79 2.78 3.01 108.27%
PROFIT/LOSS AFTER TAX AND BEFORE
EXTRAORDINARY ITEMS 1,229.98 34.41 1,195.57 3474.48%
PROFIT/LOSS FROM CONTINUING
OPERATIONS 1,229.98 34.41 1,195.57 3474.48%
PROFIT/LOSS FOR THE PERIOD 1,229.98 34.41 1,195.57 3474.48%
OTHER ADDITIONAL INFORMATION
EARNINGS PER SHARE
Basic EPS (Rs.) 59.55 1.67 57.88 3465.87%
Diluted EPS (Rs.) 59.55 1.67 57.88 3465.87%

Interpretation: The total revenue of the company is increased by Rs 1756.41 crore in the
year 2019.
The expenses have also increased. However, the company enjoyed profit for the period with
an increase in the EPS by Rs 57.88 crore.

Common Size Profit & Loss Statement

(₹ in Crores)
PROFIT & LOSS ACCOUNT OF BOMBAY
DYEING AND MANUFACTURING
COMPANY (in Rs. Cr.) Mar-19 Mar-18
PERCENTAGE PERCENTAGE
CHANGE CHANGE
12 mths 2019 12 mths 2018
INCOME
REVENUE FROM OPERATIONS [GROSS] 4,192.31 100.00% 2,612.99 101.18%
Less: Excise/Sevice Tax/Other Levies 0 0.00% 30.43 1.18%
REVENUE FROM OPERATIONS [NET] 4,192.31 100.00% 2,582.56 100.00%
TOTAL OPERATING REVENUES 4,429.76 105.66% 2,662.32 103.09%
Other Income 40.22 0.96% 51.25 1.98%
TOTAL REVENUE 4,469.98 106.62% 2,713.57 105.07%
EXPENSES
Cost Of Materials Consumed 1,177.03 28.08% 968.27 37.49%
 Operating And Direct Expenses 498.52 11.89% 703.93 27.26%
Changes In Inventories Of FG,WIP And
Stock-In Trade 494.4 11.79% 12.03 0.47%
Employee Benefit Expenses 94.66 2.26% 87.31 3.38%
Finance Costs 489.7 11.68% 412.51 15.97%
Depreciation And Amortisation Expenses 29.79 0.71% 29.88 1.16%
Other Expenses 233.08 5.56% 144.68 5.60%
TOTAL EXPENSES 3,238.08 77.24% 2,523.13 97.70%
PROFIT/LOSS BEFORE EXCEPTIONAL,
EXTRAORDINARY ITEMS AND TAX 1,231.90 29.38% 190.44 7.37%
Exceptional Items 3.87 0.09% -153.25 -5.93%
PROFIT/LOSS BEFORE TAX 1,235.77 29.48% 37.19 1.44%
TAX EXPENSES-CONTINUED OPERATIONS
Current Tax 7.64 0.18% 0 0.00%
Less: MAT Credit Entitlement 0 0.00% 0 0.00%
Deferred Tax 0 0.00% 0 0.00%
Tax For Earlier Years -1.85 -0.04% 2.78 0.11%
TOTAL TAX EXPENSES 5.79 0.14% 2.78 0.11%
PROFIT/LOSS AFTER TAX AND BEFORE
EXTRAORDINARY ITEMS 1,229.98 29.34% 34.41 1.33%
PROFIT/LOSS FROM CONTINUING
OPERATIONS 1,229.98 29.34% 34.41 1.33%
PROFIT/LOSS FOR THE PERIOD 1,229.98 29.34% 34.41 1.33%
OTHER ADDITIONAL INFORMATION
EARNINGS PER SHARE
Basic EPS (Rs.) 59.55 1.42% 1.67 0.06%
Diluted EPS (Rs.) 59.55 1.42% 1.67 0.06%

Interpretation: The total revenue of the company is increased by Rs 1756.41crore in the

year 2019.
The expenses have also increased. However, the company enjoyed profit for the period with
an increase in the EPS by Rs 57.88 crore.
RAYMOND LTD.
Comparative Balance Sheet

(₹ in Crores)
BALANCE SHEET OF RAYMOND (in Rs. ABSOLUTE PERCENTAGE
Cr.) Mar-19 Mar-18 CHANGE CHANGE
12 mths 12 mths
EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share Capital 61.38 61.38 0 0.00%
TOTAL SHARE CAPITAL 61.38 61.38 0 0.00%
Reserves and Surplus 1,307.43 1,255.68 51.75 4.12%
TOTAL RESERVES AND SURPLUS 1,307.43 1,255.68 51.75 4.12%
TOTAL SHAREHOLDERS FUNDS 1,368.81 1,317.06 51.75 3.93%
NON-CURRENT LIABILITIES
Long Term Borrowings 189.47 410.68 -221.21 -53.86%
Deferred Tax Liabilities [Net] 0 0 0
Other Long Term Liabilities 14.44 61.06 -46.62 -76.35%
Long Term Provisions 0 0 0
TOTAL NON-CURRENT LIABILITIES 203.91 471.74 -267.83 -56.77%
CURRENT LIABILITIES
Short Term Borrowings 1,284.18 747.82 536.36 71.72%
Trade Payables 615.01 541.07 73.94 13.67%
Other Current Liabilities 742.24 878.6 -136.36 -15.52%
Short Term Provisions 43.06 37.59 5.47 14.55%
TOTAL CURRENT LIABILITIES 2,684.49 2,205.08 479.41 21.74%
TOTAL CAPITAL AND LIABILITIES 4,257.21 3,993.88 263.33 6.59%
ASSETS
NON-CURRENT ASSETS
Tangible Assets 1,065.13 1,057.06 8.07 0.76%
Intangible Assets 0.6 50.02 -49.42 -98.80%
Capital Work-In-Progress 47.27 10.1 37.17 368.02%
FIXED ASSETS 1,117.80 1,122.19 -4.39 -0.39%
Non-Current Investments 453.37 469.04 -15.67 -3.34%
Deferred Tax Assets [Net] 15.86 11.45 4.41 38.52%
Long Term Loans And Advances 105.77 183.84 -78.07 -42.47%
Other Non-Current Assets 136.32 131.8 4.52 3.43%
TOTAL NON-CURRENT ASSETS 1,829.12 1,918.33 -89.21 -4.65%
CURRENT ASSETS
Current Investments 251.82 335.09 -83.27 -24.85%
Inventories 1,059.09 936.87 122.22 13.05%
Trade Receivables 675.93 618.95 56.98 9.21%
Cash And Cash Equivalents 101.85 66.94 34.91 52.15%
Short Term Loans And Advances 83.78 0 83.78 N/A
Other Current Assets 255.63 117.71 137.92 117.17%
TOTAL CURRENT ASSETS 2,428.10 2,075.55 352.55 16.99%
TOTAL ASSETS 4,257.21 3,993.88 263.33 6.59%
Interpretation: The management must analyse the reasons for increase in the total capital
and liabilities of the company.
However, the total assets of the company have increased by Rs 263.33 crores.

Common Size Balance Sheet

(₹ in Crores)

BALANCE SHEET OF RAYMOND (in Rs. Cr.) Mar-19 Mar-18

PERCENTAGE PERCENTAGE
CHANGE CHANGE
12 mths 2019 12 mths 2018
EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share Capital 61.38 1.44% 61.38 1.54%
TOTAL SHARE CAPITAL 61.38 1.44% 61.38 1.54%
Reserves and Surplus 1,307.43 30.71% 1,255.68 31.44%
TOTAL RESERVES AND SURPLUS 1,307.43 30.71% 1,255.68 31.44%
TOTAL SHAREHOLDERS FUNDS 1,368.81 32.15% 1,317.06 32.98%
NON-CURRENT LIABILITIES 0.00% 0.00%
Long Term Borrowings 189.47 4.45% 410.68 10.28%
Deferred Tax Liabilities [Net] 0 0.00% 0 0.00%
Other Long Term Liabilities 14.44 0.34% 61.06 1.53%
Long Term Provisions 0 0.00% 0 0.00%
TOTAL NON-CURRENT LIABILITIES 203.91 4.79% 471.74 11.81%
CURRENT LIABILITIES 0.00% 0.00%
Short Term Borrowings 1,284.18 30.16% 747.82 18.72%
Trade Payables 615.01 14.45% 541.07 13.55%
Other Current Liabilities 742.24 17.43% 878.6 22.00%
Short Term Provisions 43.06 1.01% 37.59 0.94%
TOTAL CURRENT LIABILITIES 2,684.49 63.06% 2,205.08 55.21%
TOTAL CAPITAL AND LIABILITIES 4,257.21 100.00% 3,993.88 100.00%

ASSETS
NON-CURRENT ASSETS
Tangible Assets 1,065.13 25.02% 1,057.06 26.47%
Intangible Assets 0.6 0.01% 50.02 1.25%
Capital Work-In-Progress 47.27 1.11% 10.1 0.25%
FIXED ASSETS 1,117.80 26.26% 1,122.19 28.10%
Non-Current Investments 453.37 10.65% 469.04 11.74%
Deferred Tax Assets [Net] 15.86 0.37% 11.45 0.29%
Long Term Loans And Advances 105.77 2.48% 183.84 4.60%
Other Non-Current Assets 136.32 3.20% 131.8 3.30%
TOTAL NON-CURRENT ASSETS 1,829.12 42.97% 1,918.33 48.03%
CURRENT ASSETS 0.00% 0.00%
Current Investments 251.82 5.92% 335.09 8.39%
 Inventories 1,059.09 24.88% 936.87 23.46%
Trade Receivables 675.93 15.88% 618.95 15.50%
Cash And Cash Equivalents 101.85 2.39% 66.94 1.68%
Short Term Loans And Advances 83.78 1.97% 0 0.00%
Other Current Assets 255.63 6.00% 117.71 2.95%
TOTAL CURRENT ASSETS 2,428.10 57.04% 2,075.55 51.97%
TOTAL ASSETS 4,257.21 100.00% 3,993.88 100.00%

Interpretation: The management must analyse the reasons for increase in the total capital
and liabilities of the company.
However, the total assets of the company have increased by Rs 352.55 crores.

Comparative Profit & Loss Statement

(₹ in Crores)
PROFIT & LOSS ACCOUNT OF ABSOLUTE PERCENTAGE
RAYMOND (in Rs. Cr.) Mar-19 Mar-18 CHANGE CHANGE
12 mths 12 mths
INCOME

REVENUE FROM OPERATIONS [GROSS] 3,241.12 2,980.86 260.26 8.73%

Less: Excise/Sevice Tax/Other Levies 0 0 0.00 N/A
REVENUE FROM OPERATIONS [NET] 3,241.12 2,980.86 260.26 8.73%
TOTAL OPERATING REVENUES 3,276.39 3,011.56 264.83 8.79%
Other Income 164.14 125.23 38.91 31.07%
TOTAL REVENUE 3,440.52 3,136.79 303.73 9.68%
EXPENSES
Cost Of Materials Consumed 713.35 645.05 68.30 10.59%
Operating And Direct Expenses 506.59 518.93 -12.34 -2.38%
Changes In Inventories Of FG,WIP And
Stock-In Trade -114.9 -236.39 121.49 -51.39%
Employee Benefit Expenses 463.86 423.01 40.85 9.66%
Finance Costs 174.75 147.45 27.30 18.51%

Depreciation And Amortisation Expenses 108.59 95.71 12.88 13.46%

Other Expenses 652.81 626.97 25.84 4.12%
TOTAL EXPENSES 3,321.91 3,045.33 276.58 9.08%
PROFIT/LOSS BEFORE EXCEPTIONAL,
EXTRAORDINARY ITEMS AND TAX 118.61 91.45 27.16 29.70%
Exceptional Items -24.37 50.02 -74.39 -148.72%
PROFIT/LOSS BEFORE TAX 94.24 141.47 -47.23 -33.39%

TAX EXPENSES-CONTINUED OPERATIONS

Current Tax 24.83 30.47 -5.64 -18.51%
Less: MAT Credit Entitlement 0 0 0.00
 Deferred Tax -4.41 12.93 -17.34 -134.11%
Tax For Earlier Years 0 0 0.00 N/A
TOTAL TAX EXPENSES 20.42 43.4 -22.98 -52.95%
PROFIT/LOSS AFTER TAX AND BEFORE
EXTRAORDINARY ITEMS 73.82 98.07 -24.25 -24.73%
PROFIT/LOSS FROM CONTINUING
OPERATIONS 73.82 98.07 -24.25 -24.73%
PROFIT/LOSS FOR THE PERIOD 73.82 98.07 -24.25 -24.73%
OTHER ADDITIONAL INFORMATION
EARNINGS PER SHARE
Basic EPS (Rs.) 12.03 15.98 -3.95 -24.72%
Diluted EPS (Rs.) 12.03 15.98 -3.95 -24.72%

Interpretation: There is an increase in the total revenue by Rs 303.73 crores and expenses
by Rs 276.58 crores.
However, the firm incurred a loss of Rs 24.25 crores in the year 2019 which led to decline in
the EPS.

Common Size Profit & Loss

(₹ in Crores)
PROFIT & LOSS ACCOUNT OF
RAYMOND (in Rs. Cr.) Mar-19 Mar-18
PERCENTAGE PERCENTAGE
12 mths CHANGE 2019 12 mths CHANGE 2018
INCOME
REVENUE FROM OPERATIONS
[GROSS] 3,241.12 100.00% 2,980.86 100.00%
Less: Excise/Sevice Tax/Other Levies 0 0.00% 0 0.00%
REVENUE FROM OPERATIONS [NET] 3,241.12 100.00% 2,980.86 100.00%
TOTAL OPERATING REVENUES 3,276.39 101.09% 3,011.56 101.03%
Other Income 164.14 5.06% 125.23 4.20%
TOTAL REVENUE 3,440.52 106.15% 3,136.79 105.23%
EXPENSES
Cost Of Materials Consumed 713.35 22.01% 645.05 21.64%
Operating And Direct Expenses 506.59 15.63% 518.93 17.41%
Changes In Inventories Of FG,WIP
And Stock-In Trade -114.9 -3.55% -236.39 -7.93%
Employee Benefit Expenses 463.86 14.31% 423.01 14.19%
Finance Costs 174.75 5.39% 147.45 4.95%
Depreciation And Amortisation
Expenses 108.59 3.35% 95.71 3.21%
Other Expenses 652.81 20.14% 626.97 21.03%
TOTAL EXPENSES 3,321.91 102.49% 3,045.33 102.16%
 PROFIT/LOSS BEFORE
EXCEPTIONAL, EXTRAORDINARY
ITEMS AND TAX 118.61 3.66% 91.45 3.07%
Exceptional Items -24.37 -0.75% 50.02 1.68%
PROFIT/LOSS BEFORE TAX 94.24 2.91% 141.47 4.75%
TAX EXPENSES-CONTINUED
OPERATIONS
Current Tax 24.83 0.77% 30.47 1.02%
Less: MAT Credit Entitlement 0 0.00% 0 0.00%
Deferred Tax -4.41 -0.14% 12.93 0.43%
Tax For Earlier Years 0 0.00% 0 0.00%
TOTAL TAX EXPENSES 20.42 0.63% 43.4 1.46%
PROFIT/LOSS AFTER TAX AND
BEFORE EXTRAORDINARY ITEMS 73.82 2.28% 98.07 3.29%
PROFIT/LOSS FROM CONTINUING
OPERATIONS 73.82 2.28% 98.07 3.29%
PROFIT/LOSS FOR THE PERIOD 73.82 2.28% 98.07 3.29%
OTHER ADDITIONAL INFORMATION
EARNINGS PER SHARE
Basic EPS (Rs.) 12.03 0.37% 15.98 0.54%
Diluted EPS (Rs.) 12.03 0.37% 15.98 0.54%

Interpretation: There is an increase in the total revenue by Rs 303.73 crores and expenses
by Rs 276.58 crores.
However, the firm incurred a loss of Rs 24.25 crores in the year 2019 which led to decline in
it’s EPS.
RATIO ANALYSIS AND INTERPRETATION

BOMBAY DYEING

LIQUIDITY RATIOS

1. CURRENT RATIO
= Current Assets / Current Liabilities

PARTICULARS 2019 2018

Current Investments 0 0
Inventories 2,200.52 409
Trade Receivables 1,092.22 212.36
Cash And Cash Equivalents 74.5 133.38
Short Term Loans And Advances 0.61 1.86
Other Current Assets 104.57 1,670.41
TOTAL CURRENT ASSETS 3,472.42 2,427.01

PARTICULARS 2019 2018

Short Term Borrowings 574.39 414.83
Trade Payables 523.01 351.11
Other Current Liabilities 443.71 344.9
Short Term Provisions 57.03 46.77
TOTAL CURRENT
LIABILITIES 1,598.14 1,157.61

Industry Average = 3.13:1

2019

= 3472.42 / 1598.14
= 2.17:1

2018

= 2427.01 / 1157.61

= 2.09:1

INTERPRETATION: There is an increase in the current asset of the company due to increase
in inventories and trade receivables. Also, there is an increase in the current liabilities due to
increase in borrowings, trade payables, etc.

The ratio indicates a moderate short term solvency.

2. QUICK RATO
= Quick Assets / Current Liabilities

PARTICULARS 2019 2018

Current Investments 0 0
Trade Receivables 1,092.22 212.36
Cash And Cash Equivalents 74.5 133.38
Short Term Loans And Advances 0.61 1.86
Other Current Assets 104.57 1,670.41
TOTAL QUICK ASSETS 1,271.9 2,018.01

PARTICULARS 2019 2018

Short Term Borrowings 574.39 414.83
Trade Payables 523.01 351.11
Other Current Liabilities 443.71 344.9
Short Term Provisions 57.03 46.77
TOTAL CURRENT
LIABILITIES 1,598.14 1,157.61
Industry Average = 0.75:1

2019

= 1271.9 / 1598.14

= 0.79:1

2018

= 2018.01 / 1157.61

= 1.74:1

INTERPRETATION: There is a decrease in the total quick assets from 2018 to 2019 due to
decrease in cash, other current assets etc whereas the liabilities is increasing showing a increase
in the company’s debt.

The ratio represents a moderate current financial position of the company.

CAPITAL STRUCTURE RATIOS

1. DEBT-EQUITY RATIO
= Total Debt / Shareholders’ Funds

PARTICULARS 2019 2018

Long Term Borrowings 3,369.49 2,230.32
Long Term Provisions 17.77 16.22
TOTAL 3,387.26 2,246.54

PARTICULARS 2019 2018

TOTAL SHAREHOLDERS
FUNDS 184.51 636.65

Industry Average = 7.6:1

2019

= 3387.26 / 184.51

= 18.36:1

2018

= 2246.54 / 636.65

= 3.53:1

INTERPRETATION: There is an increase in the total debt from the year 2018 to 2019 due
to increase in borrowings. The company should analyse the reasons for decrease in the
shareholders’ fund.

The ratio indicates that the claims of the creditors are greater than those of the owner.

2. PROPRIETARY RATIO
= Shareholders’ Funds / Total assets

PARTICULARS 2019 2018

TOTAL SHAREHOLDERS
FUNDS 184.51 636.65

PARTICULARS 2019 2018

Total Non-Current Assets 1,705.46 1,628.95
Total Current Assets 3,472.42 2,427.01
TOTAL ASSETS 5,177.88 4,055.96

Industry Average = 0.42:1

2019

= 184.51 / 5177.88

= 0.036:1
2018

= 636.65 / 4055.96

= 0.16:1

INTERPRETATION: As compare to 2018 there is a decrease in the shareholders’ fund in

2019. However, the total assets are increasing due to increase in purchase of it.

The ratio represents a shorter long-term solvency.

3. INTEREST COVERAGE RATIO

= Earnings before Interest and Tax / Fixed Interest Charges

PARTICULARS 2019 2018

Earnings before Interest and 1,725.31 449.7
Tax
Less: Earnings before Tax (1,235.61) (37.19)
Fixed Interest Charges 489.7 412.51

Industry Average = 6.69:1

2019

= 1725.31 / 489.7

= 3.52:1

2018

= 449.7 / 412.51

= 1.09:1

INTERPRETATION: There is a drastic increase in the earnings before interest and tax from
2018 to 2019 due to increase in sales and decrease in cost.

The ratio indicates good ability of the company to pay interest on it’s debentures and loans.
 4. CAPITAL GEARING RATIO
= Fixed Income Securities / Equity Shareholders’ Funds

PARTICULARS 2019 2018

Fixed Income Securities 660.54 974.07
Total Shareholders’ Funds 184.51 636.65

Industry Average = 2.26:1

2019

= 660.54 / 184.51

= 3.58:1

2018

= 974.07 / 636.65

= 1.53:1

INTERPRETATION: There is an decrease in the fixed income securities and shareholders’

fund from 2018 to 2019.

The ratio indicates that the company is highly geared. It has the advantage of trading on equity.

PROFITABILITY RATIOS

1. GROSS PROFIT RATIO

= (Gross Profit * 100) / Net Sales

PARTICULARS 2019 2018

Net Sales 4,192.31 2,582.56
Less: Cost of Goods Sold 614.49 (980.09)
GROSS PROFIT 4,806.8 1,602.47

Industry Average = 28.4%

2019

= (4806.8 * 100) / 4192.31

= 114.65%

2018

= (1602.47 * 100) / 2582.56

= 62.74%

INTERPRETATION: There is an increase in the profitability ratio from 2018 to 2019.

The ratio indicates relatively lower cost and is a sign of good management.

2. NET PROFIT RATIO

a) Net Operating Profit Ratio
= (Net Operating Profit * 100) / Net Sales

PARTICULARS 2019 2018

Gross Profit 4,806.8 1,602.47
Less: Operating Expenses (498.52) (703.93)
NET OPERATING 4,308.28 898.54
PROFIT

2019

= (4308.28 * 100) / 4192.31

= 102.76%

2018

= (898.54 * 100) / 2582.56

= 34.79%
INTERPRETATION: There is a drastic increase in the net operating profit by Rs 3409.74
crores.

b) Net Profit Ratio

= (Net Profit * 100) / Net Sales

PARTICULARS 2019 2018

Gross Profit 4,806.8 1,602.47
Less: All Expenses (3,238.08) (2,523.13)
Add: All Other Income 40.22 51.25
NET PROFIT 1,608.94 (869.41)

Industry Average = 6.3%

2019

= (1608.94 * 100) / 4192.31

= 38.37%

2018

= [(869.41) * 100] / 2582.56

= (33.36) %

INTERPRETATION: The company earned profit in 2019 of Rs 1608.94 crores as compare

to 2018 when it incurred a loss of Rs 869.41 crores.

3. OPERATING RATIO
= [(Cost of Goods Sold + Operating Expense) * 100] / Net Sales

PARTICULARS 2019 2018

Cost of Goods Sold (614.49) 980.09
Operating Expenses 498.52 703.93
OPERATING COST (115.97) 1,684.02
Industry Average = 6%

2019

= [(115.97) * 100] / 4192.31

= 2.76%

2018

= (1684.02 * 100) / 2582.56

= 65.2%

INTERPRETATION: There is a decline in the operating ratio of the company which is a

good sign, increasing the profit margin.

4. RETURN ON INVESTMENT (ROI) OR RETURN ON CAPITAL EMPLOYED

(ROCE)
= (Profit before Interest and Tax * 100) / Capital Employed
PARTICULARS 2019 2018
Earnings before Interest 1,725.31 449.7
and Tax

PARTICULARS 2019 2018

Total Shareholders’ Funds 184.51 636.65
Total Non-Current
Liabilities 3,395.23 2,261.70
CAPITAL EMPLOYED 3,579.74 2,898.35

Industry Average = 6%
2019
= (1725.31 * 100) / 3579.74
= 48.19%
 2018
= (449.7 * 100) / 2898.35
= 15.52%

INTERPRETATION: There is a increase in the ROI to 48.19% in 2019 as compare to 2018.

5. RETURN OF EQUITY (ROE)

= (Net Profit after Tax and Interest * 100) / Shareholders’ Funds
PARTICULARS 2019 2018
Profit/Loss after Tax 1,229.98 34.41
Total Shareholders’ Funds 184.51 636.65

Industry Average = 12.4%

2019
= (1229.98 * 100) / 184.51
= 666.62%

2018
= (34.41 * 100) / 636.65
= 5.4%

INTERPRETATION: There is an increase in the profit of the company in the year 2019
making the ROE increase to 666.62%.

RECOMMENDATIONS

 The company’s current investments are nil. It should focus on them and generate more
income sources.
 Moreover, the company’s Debt to Equity Ratio is very high. It must focus on bringing
down the debt component in its capital structure to avoid risks of default, to fulfil the
shareholders’ desired return on investment and to avoid huge burdens of interest
payments.
RAYMOND

LIQUIDITY RATIOS

1. Current Ratio
= Current Assets / Current Liabilities

PARTICULARS 2019 2018

Current Investments 251.82 335.09
Inventories 1,059.09 936.87
Trade Receivables 675.93 618.95
Cash And Cash Equivalents 101.85 66.94
Short Term Loans And
Advances 83.78 0
Other Current Assets 255.63 117.71
TOTAL CURRENT
ASSETS 2,428.10 2,075.55

PARTICULARS 2019 2018

Short Term Borrowings 1,284.18 747.82
Trade Payables 615.01 541.07
Other Current Liabilities 742.24 878.6
Short Term Provisions 43.06 37.59
TOTAL CURRENT
LIABILITIES 2,684.49 2,205.08

Industry Average = 3.13:1

2019

= 2428.10 / 2684.49

= 0.904
2018

= 2075.55 / 2205.08

= 0.941

INTERPRETATION: There is an increase in the current assets and liabilities of the company
in the year 2019. The ratio indicates a good short term solvency.

2. QUICK RATIO
= Quick Assets / Current Liabilities

PARTICULARS 2019 2018

Current Investments 251.82 335.09
Trade Receivables 675.93 618.95
Cash And Cash Equivalents 101.85 66.94
Short Term Loans And
Advances 83.78 0
Other Current Assets 255.63 117.71
TOTAL QUICK ASSETS 1,369.01 1,138.68

PARTICULARS 2019 2018

Short Term Borrowings 1,284.18 747.82
Trade Payables 615.01 541.07
Other Current Liabilities 742.24 878.6
Short Term Provisions 43.06 37.59
TOTAL CURRENT
LIABILITIES 2,684.49 2,205.08

Industry Average = 0.75:1

2019

= 1369.01 / 2684.49

= 0.51
2018

= 1138.68 / 2205.08

= 0.51

INTERPRETATION: There is increase in both quick assets and liabilities. However, the ratio
remains the same.

CAPITAL STRUCTURE RATIOS

1. DEBT-EQUITY RATIO
= Total Debt / Shareholders’ Funds

PARTICULARS 2019 2018

Long Term Borrowings 189.47 410.68
Long Term Provisions 0 0
TOTAL 189.47 410.68

PARTICULARS 2019 2018

TOTAL SHAREHOLDERS
FUNDS 1,368.81 1,317.06

Industry Average = 7.6:1

2019

= 189.47 / 1368.81

= 0.14

2018

= 410.68 / 1317.06

= 0.31
INTERPRETATION: There is a increase in the borrowings of the company and increase in
the shareholders’ fund. The ratio indicates the claims of the creditors to be greater than those
of the owners.

2. PROPRIETARY RATIO
= Shareholders’ Funds / Total assets

PARTICULARS 2019 2018

TOTAL SHAREHOLDERS
FUNDS 1,368.81 1,317.06

PARTICULARS 2019 2018

Total Non-Current Assets 1,829.12 1,918.33
Total Current Assets 2,428.10 2,075.55
TOTAL ASSETS 4,257.21 3,993.88

Industry Average = 0.42:1

2019

= 1368.81 / 4257.21

= 0.32

2018

= 1317.06 / 3993.88

= 0.33

INTERPRETATION: There is an increase in the shareholders’ fund and total assets. The
ratio indicates moderate solvency of the company.
 3. INTEREST COVERAGE RATIO
= Earnings before Interest and Tax / Fixed Interest Charges

PARTICULARS 2019 2018

Earnings before Interest and 268.99 288.92
Tax
Less: Earnings before Tax (94.24) (141.47)
Fixed Interest Charges 174.75 147.45

Industry Average = 6.69:1

2019

= 268.99 / 174.75

= 1.54

2018

= 288.92 / 147.45

= 1.96

INTERPRETATION: There is an increase in the earnings before interest and tax to Rs 268.99
crores. The ratio indicates decrease in the ability of the company to pay interest on debentures
and loans.

4. CAPITAL GEARING RATIO

= Fixed Income Securities / Equity Shareholders’ Funds

PARTICULARS 2019 2018

Fixed Income Securities 3,148.26 2,989.72
Total Shareholders’ Funds 1,368.81 1,317.06

Industry Average = 2.26:1

2019

= 3148.26 / 1368.81

= 2.30

2018

= 2989.72 / 1317.06

= 2.27

INTERPRETATION: There is an increase in the fixed income securities and shareholders’

fund. The ratio indicates that the company is highly geared.

PROFITABILITY RATIOS

1. GROSS PROFIT RATIO

= (Gross Profit * 100) / Net Sales

PARTICULARS 2019 2018

Net Sales 3,241.12 2,980.86
Less: Cost of Goods Sold (591.13) (406.45)
GROSS PROFIT 2,649.99 2,574.41

Industry Average = 28.4%

2019

= (2649.99 * 100) / 3241.12

= 81.76%

2018

= (2574.41 * 100) / 2980.86

= 86.36%

INTERPRETATION: There is an increase in the sales of the company in the year 2019.
However. The ratio is declining due to increase in the cost of goods sold. The ratio indicates a
higher cost of goods sold due to higher cost of production.

2. NET PROFIT RATIO

a) Net Operating Profit Ratio
= (Net Operating Profit * 100) / Net Sales

PARTICULARS 2019 2018

Gross Profit 2,649.99 2,574.41
Less: Operating Expenses (506.59) (518.93)
NET OPERATING 2,143.4 2,055.48
PROFIT

2019

= (2143.4 * 100) / 3241.12

= 66.13%

2018

= (2055.48 * 100) / 2980.86

= 68.95%

INTERPRETATION: The ratio indicates a decrease in the efficiency with which a business
is managed.

b) Net Profit Ratio

= (Net Profit * 100) / Net Sales
 PARTICULARS 2019 2018
Gross Profit 2,649.99 2,574.41
Less: All Expenses (3,321.91) (3,045.33)
Add: All Other Income 164.14 125.23
NET PROFIT (507.51) (345.69)

Industry Average = 6.3%

2019

= [(507.51) * 100] / 3241.12

= (15.65) %

2018

= [(345.69) * 100] / 2980.86

= (11.59) %

INTERPRETATION: The ratio indicates decrease in the efficiency with which a business is
managed.

3. OPERATING RATIO
= [(Cost of Goods Sold + Operating Expense) * 100] / Net Sales

PARTICULARS 2019 2018

Cost of Goods Sold 591.13 406.45
Operating Expenses 506.59 518.93
OPERATING COST 1,097.72 925.38

Industry Average = 6%
2019

= (1097.72 * 100) / 3241.12

= 33.86%

2018

= (925.38 * 100) / 2980.86

= 31.04%

INTERPRETATION: There is an increase in the operating ratio which is considered

unfavourable because it leaves a smaller margin of profit.

4. RETURN ON INVESTMENT (ROI) OR RETURN ON CAPITAL EMPLOYED

(ROCE)
= (Profit before Interest and Tax * 100) / Capital Employed

PARTICULARS 2019 2018

Earnings before Interest 268.99 288.92
and Tax

PARTICULARS 2019 2018

Total Shareholders’ Funds 1,368.81 1,317.06
Total Non-Current
Liabilities 203.91 471.74
CAPITAL EMPLOYED 1,572.72 1,788.8

Industry Average = 6%

2019
= (268.99 * 100) / 1572.72
= 17.1%
 2018
= (288.92 * 100) / 1788.8
= 16.15%

INTERPRETATION: There is an increase in the earnings and decrease in the capital

employed. The ratio indicates increase in the ROI.

5. RETURN OF EQUITY (ROE)

= (Net Profit after Tax and Interest * 100) / Shareholders’ Funds
PARTICULARS 2019 2018
Profit/Loss after Tax 73.82 98.07
Total Shareholders’ Funds 1,368.81 1,317.06

Industry Average = 12.4%

2019
= (73.82 * 100) / 1368.81
= 5.39%

2018
= (98.07 * 100) / 1317.06

= 7.44%

INTERPRETATION: There is an decrease in the profit in 2019 and increase in the

shareholders’ funds. So, the ratio indicates decrease in the ROE.

RECOMMENDATIONS
 The net profits of Raymond are very low. Hence, the company must take corrective
actions by improving the quality of its products, reducing costs, and reducing the
operating expenses.
 Moreover, the company’s Debt to Equity Ratio is very high. It must focus on bringing
down the debt component in its capital structure to avoid risks of default, to fulfil the
shareholders’ desired return on investment and to avoid huge burdens of interest
payments.
 BOMBAY DYEING FINANCIAL RATIOS
2019 2018 Industry Average
LIQUIDITY RATIOS
Current Ratio 2.17:1 2.09:1 3.13:1
Quick Ratio 0.79:1 1.74:1 0.75:1

CAPITAL STRUCTURE RATIOS

Debt-Equity Ratio 18.36:1 3.53:1 7.6:1
Proprietary Ratio 0.036:1 0.16:1 0.42:1
Interest Coverage Ratio 3.52:1 1.09:1 6.69:1
Capital Gearing Ratio 3.58:1 1.53:1 2.26:1

PROFITABILITY RATIOS
Gross profit Ratio 114.65% 62.74% 28.40%
-
Net Profit Ratio 38.37% 33.36% 6.30%
Operating Ratio 2.76% 65.20% 6%
ROI / ROCE 48.19% 15.52% 6%
ROE 666.62% 5.40% 12.40%

RAYMOND FINANCIAL RATIOS

2019 2018 Industry Average
LIQUIDITY RATIOS
Current Ratio 0.904:1 0.941:1 3.13:1
Quick Ratio 0.51:1 0.51:1 0.75:1

CAPITAL STRUCTURE RATIOS

Debt-Equity Ratio 0.14:1 0.31:1 7.6:1
Proprietary Ratio 0.32:1 0.33:1 0.42:1
Interest Coverage Ratio 1.54:1 1.96:1 6.69:1
Capital Gearing Ratio 2.30:1 2.27:1 2.26:1

PROFITABILITY RATIOS
Gross profit Ratio 81.76% 86.36% 28.40%
- -
Net Profit Ratio 15.65% 11.59% 6.30%
Operating Ratio 33.86% 31.04% 6%
ROI / ROCE 17.10% 16.15% 6%
ROE 5.39% 7.44% 12.40%
 REFERENCES

 https://www.readyratios.com/sec/industry/22/
 https://www.ibef.org/home/search
 https://en.wikipedia.org/wiki/Raymond_Ltd
 https://www.ibef.org/industry/textiles/showcase/bombay-dyeing
 https://www.moneycontrol.com/financials/bombaydyeingmanufacturingcompa
ny/balance-sheet/BDM
 https://bombaydyeing.com/pdfs/financial_updates/Annual%20Report%20201
8-19.pdf
 https://bombaydyeing.com/pdfs/financial_updates/Annual%20Report%20%20
2017-18.pdf
 https://www.moneycontrol.com/financials/raymond/balance-sheet/R
 https://www.raymond.in/sites/default/files/Annual%20Report.pdf