Financial Accounting Group Assignment 2

Anurag Priyadarshi, 380

Fiza Azmi, 390
Sarthak Agrawal, 415

Group 7 focussed fashion retail companies this time. They chose Aditya Burla Fashion and Retail
Limited (NSE INR 133.15) and Raymond Limited (NSE INR 282.75) which are important players in
the apparel and textile industry segment. Below are some of the items from the standalone profit and
loss statement and related ratios of both the companies –

Raymond Limited Particulars 2019-20 2018-19

Particulars 2019-20 (IN R in Lakhs) 2018-19 (IN R in Lakhs) EBITDA (lakhs) 41970.17 37758.85
Profit Before Tax 6,989.21 9,424.03 Net Income Ratio 2.96% 2.25%
Depreciation Expenses 15,532.04 10,859.35 Operating Profit 9949.5 12923.04
Finance Costs 19,448.92 17,475.47 Operating Profit Ratio 3.12% 3.94%
EBITDA 41,970.17 37,758.85 Interest Coverage Ratio 1.359362371 1.53927191
Net Income 9,431.62 7,381.78 Efficiency Ratio 0.681083921 0.76960845
Operating Revenue 3,18,638.71 3,27,638.75
Total Expenses 3,28,138.13 3,32,191.18
Operating Expenses 3,08,689.21 3,14,715.71
Operating Profit 9,949.50 12,923.04
EBIT 26,438.13 26,899.50
Total Assets 4,67,840.60 4,25,721.35

ABFRL Particulars 2019-20 2018-19

Particulars 2019-20( IN R in Crore) 2018-19(IN R in Crore) EBITDA (crores) 858.64 618.85
Profit Before Tax -9.09 149.1 Net Income Ratio -0.10% 1.57%
Depreciation Expenses 876.82 282.33 Operating Profit 348.55 271.74
Finance Costs 422.73 187.42 Operating Profit Ratio 3.99% 3.35%
EBITDA 858.64 618.85 Interest Coverage Ratio -0.04300617 1.79553943
Net Income -9.09 127.26 Efficiency Ratio 1.578623961 2.49629295
Operating Revenue 8742.53 8117.72
Total Expenses 8816.71 8033.4
Operating Expenses 8393.98 7845.98
Operating Profit 348.55 271.74
EBIT -18.18 336.52
Total Assets 5538.07 3251.91

Credit Condition, Performance and Efficiency

- About credit condition, we can see that both the companies are earning only a few rupees
more per rupee spent on finance costs. Additionally, ABFRL has a negative ICR I the year
2019-20 which is an alarm for the company. We can say that the ICR of both the companies
are not satisfactory.
- About performance, we can see that the operating profit ratio is about 3-4 and net income
ratio hovers between 2% and 3% with a negative NI ratio in the year 2019-20 for ABFRL.
 Also, we draw an inference Raymonds is performing better than ABFRL when NI is taken as
a parameter.
- About efficiency, we can see that ABFRL is more efficient than Raymonds when it comes to
utilization of its total assets for revenue generation.