Practice School Project Report

On
“A Study on Consumer Perception towards offers & discounts
with special reference to offers & discounts”
Submitted to
N.R institute of business management
Under the guidance of
PROF DR. HITEKSHA JOSHI
(FACULTY OF MANAGMEANT)
In partial Fulfilment of the Requirement of the award of the degree of
Master of Business Administration (MBA)
Offered By
Gujarat Law Society
Ahmedabad

Prepared by
NAME Enrollment number
Rajput Sagar Singh 202000620010626
Akshar M Prajapati 202000620010621
Krupesh Mistry 202000620010577
Parth Parmar 202000620010599
Raj Parmar 202000620010600
Chetan Prajapati 202000620010622
Vishwas naik 202000620010586

MBA

(Semester - I)
February,2021
 Table of Contents
PREFACE .................................................................................................................................................................... 3
ACKNOWLEDGEMENT .......................................................................................................................................... 4
MAHINDRA FINANCE............................................................................................................................................. 5
INTRODUCTION: - ............................................................................................................................................... 5
MAHINDRA & MAHINDRA FINANCIAL SERVICES ................................................................................... 6
Vertical analyses...................................................................................................................................................... 7
Comparative analyses ........................................................................................................................................... 10
TREND ANLIYSES .............................................................................................................................................. 11
RATIO ANALYSIS .............................................................................................................................................. 12
BAJAJ FINSERV...................................................................................................................................................... 14
Introduction ........................................................................................................................................................... 14
Comparative statement analysis for Profit And Loss:- ..................................................................................... 16
Common size statement of Bajaj Finserv for Balance sheet:- ........................................................................... 18
Trend Analysis for the year ended 2019,2020 ( in cr.) ....................................................................................... 19
Ratio Analysis ........................................................................................................................................................ 20
L&T Finance ............................................................................................................................................................. 21
Comparative Statement Analysis Of L&T Finance For P&L Account ........................................................... 21
Common Size Statement Analysis Of L&T Finance For Balance Sheet .......................................................... 23
Trend Analysis for the year ended on 2018,2109 and 2020 (in crore) .............................................................. 24
Ratio Analysis ........................................................................................................................................................ 25
MUTHOOT FINANCE ............................................................................................................................................ 27
INTRODUCTION................................................................................................................................................. 27
Statement Analysis of Muthoot Finance Ltd. Balance Sheet ............................................................................ 30
Comparative Statement Analysis of Muthoot Finance Ltd. P&L Account .................................................... 33
Trend Analysis of Muthoot Finance Ltd. For The Year Ending 2018,2019&2020 ........................................ 34
Ratio Analysis ........................................................................................................................................................ 35
 PREFACE

As a part of the MBA curriculum and in order to gain practical knowledge in the field of management, we are
required to make a Project report. The basic objective behind doing this Project report is to get knowledge and
experience. A man without practical knowledge is just like a rough diamond. To shine like a real diamond,
one must have practical exposure of what he has learnt. For the management students, theoretical knowledge
is just like lock without key, so practical knowledge is very important. Theoretical knowledge is only a half
way in study network. Theoretical knowledge should be supplemented by practical experience of MBA is a
course where no one can learn effectively with theory and concept.
We are preparing research proposal on our selected topic that We have selected titled “ANALYSIS OF NBFC
SECTOR.” to gain the knowledge about the practical aspects.
 ACKNOWLEDGEMENT

It is relatively unavoidable to bring about obligation to all who liberally helped by sharing their precious time
and rich experience us, without which this task would have never been expert. No assignment can be
accomplished alone, especially while endeavouring to complete an undertaking of such greatness. It took
numerous uncommon individuals to encourage it and bolster it. Consequently, we might want to recognize
the majority of their profitable help and pass on our modest appreciation to them. We would like to thank
‘DR. HITEKSHA JOSHI’ for their guidance throughout the preparation of the project and for their valued
suggestion
 MAHINDRA FINANCE

INTRODUCTION: -
Mahindra & Mahindra Financial Services Limited (MMFSL) is a rural NBFC headquartered
in Mumbai, India. It is amongst the top tractor financers in India and offers a wide range of financial products
to address varied customer requirements. The NBFC has 1000+ offices spread over 1 in every 3 villages across
India with a total of more than 4.7 million customers to date. Mahindra Finance started on 1 January 1991, as
Maxi Motors Financial Services Limited, they received the certificate of commencement of business on 19
February 1991. On 3 November 1992, Mahindra Finance changed their name to Mahindra & Mahindra
Financial Services Limited. Mahindra Finance is registered with the Reserve Bank of India as an asset finance,
deposit taking NBFC. In 1993 it commenced financing M&M Utility vehicles and in 1995 started its first
branch outside Mumbai, in Jaipur. The company began financing Non-M&M vehicles in 2002 and got into
the business of financing commercial vehicles and construction equipment in 2009. 2011 was the year in
which they had a joint venture with Rabobank subsidiary for tractor financing in the US and consolidated the
product portfolio by introducing small and medium enterprises (SME) financing. Mahindra & Mahindra
Financial Services Limited (MMFS) is one of India’s non-banking finance companies focused in the rural and
semi-urban sector and is one of the largest Indian tractor financiers. The company is Primarily in the business
of financing purchase of new and pre-owned auto and utility vehicles, tractors, cars, commercial vehicles,
construction equipment and SME Financing.  MMFS has around 1,284 offices covering 27 states and 4 union
territories in India, with over 5.34 million vehicle finance customer contracts since inception. During the latest
financial results, the company has reported a growth of 19% in its revenues for FY-18 at ₹85,735 million as
against ₹72,007 million in FY-17. The company’s the company’s profit after tax doubled for the year to
₹10,239 million as against ₹5,116 million in FY-17. On lending front, the company’s outstanding loan book
as of March-18 stood at ₹572 billion as against ₹472 billion in FY-17; a growth of 21.3%. In terms of segment
wise breakdown of AUM for the company; Auto/utility segment contributed 27% followed by Cars, Tractors,
CVs at 22%, 17%, 14% respectively. The company has a healthy mix of both vertical lending across products
while geographic mix across verticals which provides it a stable base business which reduces volatility and
diversifies risk. The company has also a very healthy market share in vehicle finance both OEM and seconds
sales due to its higher reach and penetration.  Going ahead we believe the company to continue to grow its
footprint across the country which should enable it to grow at higher rates and maintain its market share in
vehicle segment. The company is also expected to focus on increasing its SME business which should also
improve its return ratios going ahead.  With Indian economy witnessing improvement in its macros specially
the rural and semi urban areas given higher government impetus we believe MMFS is well established in
hinterland to reap positive benefits in medium term. Thus, we initiate our coverage on MMFS with BUY
rating and a target price of ₹609 per share.
MAHINDRA & MAHINDRA FINANCIAL SERVICES

BALANCE SHEET (in Rs. Cr.) MAR 20 MAR 19 vertical analysis vertical analysis
%2020 %2021

Reserves and Surplus 11,845.94 11,146.04 14.4829 14.94589

TOTAL RESERVES AND SURPLUS 11,845.94 11,146.04 14.4829 14.94589

TOTAL SHAREHOLDERS FUNDS 11,969.00 11,269.02 14.63336 15.11079

Minority Interest 89.68 78.51 0.109643 0.105275

NON-CURRENT LIABILITIES -39.4988

Long Term Borrowings 32,307.10 34,168.90 39.49882 45.81757

Other Long-Term Liabilities 131.08 105.63

Long Term Provisions 211.39 254.94 0.129144 0.034126

TOTAL NON-CURRENT 32,649.57 34,529.47

LIABILITIES 0.258446 0.341853

CURRENT LIABILITIES 39.91752 46.30107

Short Term Borrowings 33,327.14 24,632.72

Trade Payables 722.85 1,148.48 40.74592 33.03037

Other Current Liabilities 3,034.33 2,917.77 0.88376 1.540013

Short Term Provisions 0.00 0.00 3.709786 3.91248

TOTAL CURRENT LIABILITIES 37,084.32 28,698.97 45.33947 38.48287

TOTAL CAPITAL AND 81,792.58 74,575.97

LIABILITIES 100 100

ASSETS
 NON-CURRENT ASSETS

Tangible Assets 427.76 168.19 0.522981 0.225528

Intangible Assets 27.60 33.26 0.033744 0.044599

Capital Work-In-Progress 0.00 0.00

FIXED ASSETS 455.92 202.24 0.55741 0.271187

Non-Current Investments

Deferred Tax Assets [Net] 578.83 449.70 0.70768 0.603009

Long Term Loans and Advances 0.00 0.00

Other Non-Current Assets 356.46 387.90 0.43581 0.520141

TOTAL NON-CURRENT ASSETS 1,391.21 1,039.84 1.7009 1.394337

CURRENT ASSETS

Current Investments 5,340.36 3,327.35 6.52915 4.461692

Inventories 0.00 0.00

Trade Receivables 52.91 53.60 0.064688 0.071873

Cash and Cash Equivalents 1,531.60 994.04 1.872541 1.332923

Short Term Loans and Advances 72,863.78 68,939.00 89.08361 92.44131

Other Current Assets 612.71 222.13 0.749102 0.297857

TOTAL CURRENT ASSETS 80,401.36 73,536.13 98.29909 98.60566

TOTAL ASSETS 81,792.58 74,575.97 100 100

Vertical analyses
Short term loan given by company carries around 90% in 2020 year which shows it good performance
Loan taken by government carries 40% of b\s it is goods
Short term of borrowing carries 33%
BALANCE SHEET (in Rs. Cr.) MAR 20 MAR 19 Absolute In %
change

Reserves and Surplus 11,845.94 11,146.04 699.90 6.27936

TOTAL RESERVES AND SURPLUS 11,845.94 11,146.04 699.90 6.27936

TOTAL SHAREHOLDERS FUNDS 11,969.00 11,269.02 699.98 6.211543

Minority Interest 89.68 78.51 11.17 14.22749

NON-CURRENT LIABILITIES

Long Term Borrowings 32,307.10 34,168.90 -1,861.80 -5.44881

Other Long-Term Liabilities 131.08 105.63 25.45 24.09353

Long Term Provisions 211.39 254.94 -43.55 -17.0825

TOTAL NON-CURRENT LIABILITIES 32,649.57 34,529.47 -1,879.90 -5.44433

CURRENT LIABILITIES

Short Term Borrowings 33,327.14 24,632.72 8,694.42 35.29622

Trade Payables 722.85 1,148.48 -425.63 -37.0603

Other Current Liabilities 3,034.33 2,917.77 116.56 3.994832

Short Term Provisions 0.00 0.00 0.00 -

TOTAL CURRENT LIABILITIES 37,084.32 28,698.97 8,385.35 29.2183

TOTAL CAPITAL AND LIABILITIES 81,792.58 74,575.97 7,216.61 9.676857

ASSETS

NON-CURRENT ASSETS

Tangible Assets 427.76 168.19 259.57 154.3314

Intangible Assets 27.60 33.26 -5.66 -17.0174

Capital Work-In-Progress 0.00 0.00 0.00 -

FIXED ASSETS 455.92 202.24 253.68 125.4351

Non-Current Investments

Deferred Tax Assets [Net] 578.83 449.70 129.13 28.7147

Long Term Loans and Advances 0.00 0.00 0.00 -

Other Non-Current Assets 356.46 387.90 -31.44 -8.10518

TOTAL NON-CURRENT ASSETS 1,391.21 1,039.84 351.37 33.79078

CURRENT ASSETS

Current Investments 5,340.36 3,327.35 2,013.01 60.4989

Inventories 0.00 0.00 0.00 -

Trade Receivables 52.91 53.60 -0.69 -1.28731

Cash and Cash Equivalents 1,531.60 994.04 537.56 54.07831

Short Term Loans and Advances 72,863.78 68,939.00 3,924.78 5.69312

Other Current Assets 612.71 222.13 390.58 175.834

TOTAL CURRENT ASSETS 80,401.36 73,536.13 6,865.23 9.33586

TOTAL ASSETS 81,792.58 74,575.97 7,216.61 9.676857

OTHER ADDITIONAL INFORMATION

CONTINGENT LIABILITIES,
COMMITMENTS

Contingent Liabilities 1,939.37 1,720.70 218.67 12.7082

NON-CURRENT INVESTMENTS

CURRENT INVESTMENTS

Current Investments Quoted Market Value 0.00 0.00

Current Investments Unquoted Book Value 5,340.36 3,327.35 2,013.01 60.4989

 Comparative analyses
Absolute
Mar-20 Mar-19 Change in %
change

INCOME
Revenue from Operations [Gross] 10,097.85 8,722.91 1,374.94 15.7624
Revenue from Operations [Net] 10,097.85 8,722.91 1,374.94 15.7624
Total Operating Revenues 10,097.85 8,722.91 1,374.94 15.7624
Other Income 147.29 86.9 60.39 69.49367
Total Revenue 10,245.14 8,809.81 1,435.33 16.29241
EXPENSES
Operating and Direct Expenses 40.94 30.48 10.46 34.31759
Employee Benefit Expenses 1,148.45 1,090.12 58.33 5.350787
Finance Costs 4,828.75 3,944.56 884.19 22.41543
Provisions and Contingencies 2,054.47 635.21 1,419.26 223.4316
Depreciation and Amortization
118.29 60.23 58.06 96.39714
Expenses
Other Expenses 710.48 666.78 43.7 6.553886
Total Expenses 8,901.38 6,427.37 2,474.01 38.49179
Mar-20 Mar-19 366 0.840896
Profit/Loss Before Exceptional,
1,343.76 2,382.44 -1,038.68 -43.5973
Extraordinary Items and Tax
Exceptional Items 0 0 0
Profit/Loss Before Tax 1,343.76 2,382.44 -1,038.68 -43.5973
Tax Expenses-Continued Operations
Current Tax 556.94 574.12 -17.18 -2.99241
Deferred Tax -119.58 248.52 -368.1 -148.117
Tax for Earlier Years 0 2.74 -2.74 -100
Total Tax Expenses 437.36 825.38 -388.02 -47.0111
Profit/Loss After Tax and Before
906.4 1,557.06 -650.66 -41.7877
Extraordinary Items
Profit/Loss from Continuing
906.4 1,557.06 -650.66 -41.7877
Operations
Profit/Loss for The Period 906.4 1,557.06 -650.66 -41.7877

Comparative analysis of P&L and Balance sheet

Increase in reserve and surplus around 15% Which Shows good company
Current investment increase in 35 % in company
Operating investment increase by 35%
Profit of the company increase by 41%
Tax expanses in 47%
Overall performance of the company increase and their share price also increase so we can trust in this
company
 Mahindra and Mahindra
TREND ANLIYSES
BASE YEAR 2018
Standalone Profit & Loss
------------------- in Rs. Cr. -------------------
account
TREND TREN
Mar-20 Mar-19 Mar-18
2020 D 2021
INCOME
8.13113
Revenue from Operations [Gross] 44,897.93 52,960.80 48,871.76 -8.36688 7
Less: Excise/Service Tax/Other Levies 0 0 759.44 100 100
6.68101
Revenue from Operations [Net] 44,897.93 52,960.80 48,112.32 -10.0774 2
Other Operating Revenues 589.85 653.2 573.23 -13.9508 2.89936
6.56821
Total Operating Revenues 45,487.78 53,614.00 48,685.55 -10.123 2
Other Income 1,667.81 1,688.97 1,036.36 -62.9714 60.9296
5.16134
Total Revenue 47,155.59 55,302.97 49,721.91 -11.2245 6
EXPENSES
1.68306
Cost of Materials Consumed 22,873.74 27,095.07 23,265.31 -16.4612 4
21.7819
Purchase of Stock-In Trade 8,349.36 12,111.61 10,674.47 -13.4633 7
Changes in Inventories Of FG, WIP And
409.49 -950.19 194.87 587.602 110.135
Stock-In Trade
1.37949
Employee Benefit Expenses 2,880.08 2,980.22 2,840.89 -4.90445
7
0.91800
Finance Costs 113.23 113.39 112.2 -1.06061
4
50.2365
Depreciation and Amortization Expenses 2,222.63 1,860.40 1,479.42 -25.752
8
4.09407
Other Expenses 5,384.59 5,867.23 5,614.45 -4.50231
9
61.5600
Less: Amounts Transfer to Capital Accounts 207.54 129.5 128.46 -0.80959
2
4.60255
Total Expenses 42,025.58 48,948.23 44,053.15 -11.1118 4
Profit/Loss Before Exceptional, 9.50384
5,130.01 6,354.74 5,668.76 -12.1011
2
Extraordinary Items and Tax
564.468
Exceptional Items -2,013.98 -29.73 433.61 106.8564
1
48.9373
Profit/Loss Before Tax 3,116.03 6,325.01 6,102.37 -3.64842
8
Tax Expenses-Continued Operations
17.6886
Current Tax 996.98 1,179.12 1,211.23 2.651024
3
47.3473
Deferred Tax 788.5 349.85 535.13 34.62336
7
2.24008
Total Tax Expenses 1,785.48 1,528.97 1,746.36 12.44818
8
 Profit/Loss After Tax and Before 69.4548
1,330.55 4,796.04 4,356.01 -10.1017
Extraordinary Items 5
69.4548
Profit/Loss from Continuing Operations 1,330.55 4,796.04 4,356.01 -10.1017
5
69.4548
Profit/Loss for The Period 1,330.55 4,796.04 4,356.01 -10.1017
5

Trend analyses
• When we talk about trend analyses there are increase in compare to base year
• Increase in profit compare to base price is increase around 70 % compare to base
year
• Other income is increase by 60 % compare to base year
• We can say that company constantly increase compare to base year

RATIO ANALYSIS

Year 2020

RETURN ON CAPITAL EMPLOYED = PFOFIT BEFORE INTEREST AND TAX *100

AVERAGE CAPITAL EMPLOYEE

AVERAGE CAPITAL EMPLOYEE = 11,845.94+11,969.00+32,307.10 = 28061.02

2

= 3,116.03 *100
28061.02 = 11.04 %

RETURN ON PROPRIETOR’S FUND = NET PROFIT (after tax) *100

AVERAGE PROPRIETOR’S FUNDS

RETURN ON PROPRIETOR’S FUND = 906.40

28061.02 = 3.23%

RETURN ON EQUITY = NET INCOME *100

 OWNER’S FUND

RETURN ON EQUITY = 906.40 *100

7.65%
11,845.94

EARNING PER SHARE = NET INCIME – PRERANCE DIVIDENT *100

NUMBER OF EQUITY SHARES

EARNING PER SHARE = 906.40 *100

75.73%
11,96.9

CURRENT RATIO = CURRENT ASSETS

CURRENT LIABILITIES

CURRENT RATIO = 37,084.32

80,401.36 1:0.46

DEBT EQUITY RATIO = TOTAL LIABILITIES

PROPRIETOR’S FUNDS

DEBT EQUITY RATIO = 81,792.58

6.9 :1
11,845.94

PEOPERIETARY RATIO = PROPRIETOR’S FUNDS

TOTAL ASSETS OR TOTAL LIABILITIES

PEOPERIETARY RATIO 11,845.94

1:0.44
81,792.58

Interpretation of ratio analyses

Return on capital employed in the year is around 11% it shows good performance
Return on proprietor fund is only 3 % it quit low company need to improve it
Current ratio is 1:0.4 it was very low stander is 1:2
Earning per share is 75 % around is very high that shows wealth of share holder
Ratio analysis shows that company is increase in constant and good performance
 BAJAJ FINSERV

Introduction
Bajaj Finance Limited, the lending and investment arm of Bajaj Finserv group, is one of the most diversified
NBFCs in the Indian market catering to more than 38 million customers across the country. Apart from being the
largest financier of consumer durables in India, BFL is also one of the most profitable firms in this category.

Spread across nine product lines, Bajaj Finance Ltd is focused on consumer, SME and commercial lines of
business. BFL is present in 1997 locations with a strong distribution network of 102600+ active point of sale.

The 32 year old non-bank is focused on mass affluent client with a strategy to cross sell. With a strong focus on
deposits acceptance and fee product distribution, the company is present in 944 urban locations and 951 rural
locations in India with over more than 97,000 distribution points. It enjoys a large customer franchise of 38.70 MM
with loans cross sell franchise of 22.78 MM.

Bajaj Finance has 100% shareholding in Bajaj Housing Finance Limited and 100% shareholding in Bajaj Financial
Securities Limited. Bajaj Finance Limited prides itself on holding the highest credit rating of FAAA/Stable for any
NBFC in the country today. It is also the only NBFC in India with the international ‘BBB’ with stable outlook for
long-term, by S&P Global Rating.
Comparative Statement of profit and loss of the year March-19 to March-20

Bajaj Finserv

Standalone Profit & Loss account ------------------- in Rs. Cr. -------------------

Absolute
Absolute change
change
%(increase or
Mar 20 Mar-19 (increase or
decrease)march-
decrease)
19
march-20
12 MONTH 12 MONTH
INCOME
Revenue From Operations [Gross] 779.86 423.05 356.81 84.34227633
Revenue From Operations [Net] 779.86 423.05 356.81 84.34227633
Total Operating Revenues 779.86 423.05 356.81 84.34227633
Other Income 35.3 25.51 9.79 38.37710702
Total Revenue 815.16 448.56 366.6 81.7281969
EXPENSES
Employee Benefit Expenses 84.72 53.53 31.19 58.26639268
Depreciation And Amortisation Expenses 2.9 1.55 1.35 87.09677419
Other Expenses 45.66 67.49 -21.83 -32.34553267
Total Expenses 133.28 122.57 10.71 8.737864078
Mar-20 Mar-19 366 0.840896037

12 months 12 months
Profit/Loss Before Exceptional, Extra
681.88 325.99
Ordinary Items And Tax 355.89 109.1720605
Profit/Loss Before Tax 681.88 325.99 355.89 109.1720605
Tax Expenses-Continued Operations
Current Tax 13.94 18.02 -4.08 -22.64150943
Deferred Tax 1.08 0.8 0.28 35
Total Tax Expenses 15.02 18.82 -3.8 -20.19128587
Profit/Loss After Tax And Before Extra-
666.86 307.17
Ordinary Items 359.69 117.0980239
Profit/Loss From Continuing Operations 666.86 307.17
359.69 117.0980239
Profit/Loss For The Period 666.86 307.17 359.69 117.0980239
Mar-20 Mar-19 366 0.840896037

12 mths 12 mths
OTHER ADDITIONAL INFORMATION
EARNINGS PER SHARE
Basic EPS (Rs.) 41.9 19.3 22.6 117.0984456
Diluted EPS (Rs.) 41.9 19.3 22.6 117.0984456
VALUE OF IMPORTED AND INDIGENIOUS RAW
MATERIALS
STORES, SPARES AND LOOSE TOOLS
DIVIDEND AND DIVIDEND PERCENTAGE
Equity Share Dividend 119.36 27.85 91.51 328.5816876
Equity Dividend Rate (%) 100 50 50 100
Comparative statement analysis for Profit And Loss:-
• There is increase in total revenue from operations in current year as compare to previous year.
• There is addition in EPS found in the year 2020 when we evaluate with the year 2019.
• There is increase in profit before tax.
• Total expenses of the current year has little bit change as compare to the previous year.
• There is also slight change in the depreciation expenses in the year 2020.
• There is 74% change in the deferred tax in the current year as compared to previous year.
Common size balance sheet in Rs. Cr.

percentage percentage
of balance of balance
BALANCE SHEET OF BAJAJ FINSERV (in Rs.
Mar-20 Mar-19 sheet total sheet total
Cr.)
of march- of march-
20 19

12 months 12 month
EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share Capital 79.57 79.57 0.0633373 0.0741226
TOTAL SHARE CAPITAL 79.57 79.57 0.0316528 0.0381589
Reserves and Surplus 31,221.68 23,660.50 12.419906 11.346718
TOTAL RESERVES AND SURPLUS 31,221.68 23,660.50 12.419906 11.346718
TOTAL SHAREHOLDERS FUNDS 31,301.25 23,740.07 12.451559 11.384877
Minority Interest 19,560.15 12,807.65 7.7809786 6.1420844
NON-CURRENT LIABILITIES
Long Term Borrowings 71,906.21 62,179.91 28.60411 29.819229
Deferred Tax Liabilities [Net] 80.04 94.68 0.0318397 0.0454051
Other Long Term Liabilities 2,731.84 2,185.16 1.0867191 1.0479235
Long Term Provisions 175.8 166.19 0.0699328 0.0796987
TOTAL NON-CURRENT LIABILITIES 74,893.89 64,625.94 29.792602 30.992257
CURRENT LIABILITIES
Short Term Borrowings 54,700.17 37,574.44 21.75959 18.019339
Trade Payables 3,938.89 3,940.65 1.5668806 1.8897928
Other Current Liabilities 66,989.84 65,834.11 26.64839 31.571651
Short Term Provisions 0 0 0 0
TOTAL CURRENT LIABILITIES 1,25,628.90 1,07,349.20 49.974861 51.480783
TOTAL CAPITAL AND LIABILITIES 2,51,384.19 2,08,522.86 100 100
ASSETS
NON-CURRENT ASSETS
Tangible Assets 2,193.06 1,175.73 0.8723938 0.5638375
Intangible Assets 333.22 231.76 0.1325541 0.1111437
Capital Work-In-Progress 13.2 60.81 0.0052509 0.0291623
FIXED ASSETS 2,570.97 1,473.00 1.0227254 0.7063974
Non-Current Investments 13.82 13.18 0.0054976 0.0063207
Deferred Tax Assets [Net] 885.47 779.87 0.3522377 0.3739974
Long Term Loans And Advances 0 0 0 0
Other Non-Current Assets 5,798.24 4,825.71 2.3065253 2.3142355
TOTAL NON-CURRENT ASSETS 9,957.84 7,781.10 3.9612038 3.7315333
CURRENT ASSETS
Current Investments 91,807.23 81,665.88 36.520686 39.163994
Inventories 0 0 0 0
Trade Receivables 2,814.88 2,365.27 1.1197522 1.1342977
Cash And Cash Equivalents 2,525.23 1,588.89 1.0045302 0.761974
 Short Term Loans And Advances 1,41,742.76 1,12,847.90 56.384914 54.11776
Other Current Assets 2,536.25 2,273.82 1.0089139 1.0904416
TOTAL CURRENT ASSETS 2,41,426.35 2,00,741.76 96.038796 96.268467
TOTAL ASSETS 2,51,384.19 2,08,522.86 100 100

Common size statement of Bajaj Finserv for Balance sheet:-

• The total reserves and surplus of the company has increased as compare to previous year.
• The total Non-Current liabilities has also increased.
• There is slightly decrease in the trade payable of the company as compared to the previous year.
• The total Current liabilities has increased.
• The intangible assets of the company has increased.
• The Non-current asset of the company has increased as compare to the previous year.
• The Non-current investment has slightly increased.
Trend Analysis for the year ended 2019,2020 ( in cr.)

Bajaj Finserv

Standalone Profit & Loss account ------------------- in Rs. Cr. -------------------

Mar 20 Mar-19 Mar-18
12 months 12 month 12 month
INCOME
Revenue From Operations [Gross] 779.86 423.05 241.9
BASE(%) 322.3894171 174.8863167 100%
Revenue From Operations [Net] 779.86 423.05 241.9
BASE(%) 322.3894171 174.8863167 100%
Total Operating Revenues 779.86 423.05 241.9
BASE(%) 322.3894171 174.8863167 100%
Other Income 35.3 25.51 10.36
BASE(%) 340.7335907 246.2355212 100%
Total Revenue 815.16 448.56 252.26
BASE(%) 323.1427892 177.8165385 100%
EXPENSES

Employee Benefit Expenses 84.72 53.53 26.91

BASE(%) 314.8272018 198.9223337 100%
Depreciation And Amortisation Expenses 2.9 1.55 1.36
BASE(%) 213.2352941 113.9705882 100%
Other Expenses 45.66 67.49 56.78
BASE(%) 80.41563931 118.8622754 100%
Total Expenses 133.28 122.57 85.05
BASE(%) 156.7078189 144.1152263 100%
Mar-20 Mar-19 Mar-18

12 mths 12 mths 12 mths

Profit/Loss Before Exceptional, Extra Ordinary Items
681.88 325.99 167.21
And Tax
BASE(%) 407.7985766 194.9584355 100%
Profit/Loss Before Tax 681.88 325.99 167.21
BASE(%) 407.7985766 194.9584355 100%
Tax Expenses-Continued Operations
Current Tax 13.94 18.02 27.6
BASE(%) 50.50724638 65.28985507 100%
Deferred Tax 1.08 0.8 -2.01
BASE(%) -53.73134328 -39.80099502 100%
Total Tax Expenses 15.02 18.82 25.59
BASE(%) 58.69480266 73.54435326 100%
 Profit/Loss After Tax And Before Extra Ordinary Items 666.86 307.17 141.62

BASE(%) 470.8798192 216.8973309 100%

Profit/Loss From Continuing Operations 666.86 307.17 141.62

BASE(%) 470.8798192 216.8973309 100%

Profit/Loss For The Period 666.86 307.17 141.62
BASE(%) 470.8798192 216.8973309 100%

Ratio Analysis

1. Current Ratio: Current Assets/Current Liabilities

Current Assets=2,41,426.35
Current liabilities=1,25,628.90
Current Ratio=241426.35/125628.90 = 1.92:1
Ascurrentration is 1.92:1 which shows company have better capacity to meet its current
obligationandtheidealcurrentratiois2:1.

2. Liquid Ratio : Liquid assets/Current Liabilities

Liquid assets= Current Assets–Inventories–Prepaid expenses
Liquid Assets=241426.35 -
Current Liabilities= 125628.90
Liquid Ratio=
As the ratiois0.34:1 which means company do not have better short term financial position as the deal

3. Debt to Equity Ratio=Debt/Equity(Shareholder’s Fund)

Debt=Long-term borrowings + Long term provisions
=71,906.21+175.8 =72082.01

Equity= 2,51,384.19
Debt to Equity=72082.01/2,51,384.19 = 0.286740

As the ratio is 0.286740:1 which means lower the ratio is better for the company. Lower the debt to equity
ratio higher the degree of protection enjoyed by the lenders.

4. Total asset to Debt ratio : Total asset/Debt

Debt =Long-term borrowings +Long term provisions
=72082.01+ 175.8 =72257.81
Total assets = 2,51,384.19
Total assets to Debt ratio = 2,51,384.19/72257.81 = 3.4789

As ratio is 3.4874:1 and ideal ratio is which means company is going well assist assets covers its debt
As its total asset area most thrice the debt.
5. Proprietary Ratio=Shareholder’s fund/Total Assets
Shareholder’s fund= 31,301.25
Total assets= 2,51,384.19
Proprietary Ratio= 31,301.25/2,51,384.19 = 0.1245
 L&T Finance
Profit & Loss account

Comparative Statement of P&L of the year ended on 2019-20 (in crores)

Mar-20 Mar-19 Difference Difference in [%]
INCOME
Revenue From Operations 475.44 482.11 -6.67 -1.38
[Gross]
Revenue From Operations 475.44 482.11 -6.67 -1.38
[Net]
Total Operating Revenues 475.44 482.11 -6.67 -1.38
Other Income 46.94 44.37 2.57 5.79
Total Revenue 522.38 526.48 -4.1 -0.77

EXPENSES
Employee Benefit Expenses 26.72 15.08 11.64 77.18
Finance Costs 200.75 202.05 -1.3 -0.64
Provisions and Contingencies 0.12 -3.91 4.03 -103.06
Depreciation And 0.48 0.11 0.37 336.36
Amortization Expenses
Other Expenses 10.57 9.12 1.45 15.89
Total Expenses 238.64 222.45 16.19 7.27

Profit/Loss Before 283.74 304.03 -20.29 -6.67

Exceptional, Extraordinary
Items And Tax
Profit/Loss Before Tax 283.74 304.03 -20.29 -6.67

Tax Expenses-Continued
Operations
Current Tax 16.35 35.87 -19.52 -54.41
Less: MAT Credit Entitlement 0 0 0 0
Deferred Tax 33.14 1.1 32.04 2912.72
Tax For Earlier Years -32.8 0 -32.8
Total Tax Expenses 16.69 36.97 -20.28 -54.85
Profit/Loss After Tax And 267.05 267.06 -0.01 -0.0037
Before Extraordinary Items
Extraordinary Items -0.24 0 -0.24
Profit/Loss From Continuing 266.81 267.06 -0.25 -0.093
Operations
Profit/Loss For The Period 266.81 267.06 -0.25 -0.093

Comparative Statement Analysis Of L&T Finance For P&L Account

• There is revenue from operations in current year as compare to previous yearare decrease.
• There is reduction in Total Revenue in the year 2020 when we evaluate with the year 2019.
• There is reduction in profit before tax, infect there is a loss found in the year 2020.
• There is 336.36% change in the Depreciation And Amortisation Expenses in the current year as compared
to previous year.
L&T Finance
Balance Sheet

Common Size Balance sheet of the year ended on 2019-20(in crores)

Mar 20 Mar-19 20 19
EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS

Equity Share Capital 2,004.83 1,998.81 17.68 19.89

Preference Share Capital 1,717.84 1,032.29 15.15 10.27
Total Share Capital 3,722.67 3,031.10 32.83 30.16
Reserves and Surplus 5,658.75 5,709.60 49.91 56.81
Total Reserves and Surplus 5,658.75 5,709.60 49.91 56.81
Money Received Against Share Warrants 0 0 0 0
Employees Stock Options 181.27 121.94 1.59 1.21
Total Shareholders Funds 9,562.69 8,862.64 84.34 88.19
NON-CURRENT LIABILITIES 0 0
Long Term Borrowings 1,742.79 1,167.48 15.37 11.61
Other Long Term Liabilities 11.03 10.72 0.09 0.10
Long Term Provisions 1.55 2.08 0.013 0.020
Total Non-Current Liabilities 1,755.37 1,180.28 15.48 11.74
CURRENT LIABILITIES
Short Term Borrowings 0 0 0 0
Trade Payables 7.51 0.01 0.066 9.9
Other Current Liabilities 12.25 5.95 0.10 0.059
Short Term Provisions 0 0 0 0
Total Current Liabilities 19.76 5.96 0.17 0.059
Total Capital And Liabilities 11,337.82 10,048.88 100 100

ASSETS
NON-CURRENT ASSETS
Tangible Assets 0.96 0.79 0.008 0.0078
Intangible Assets 0 0 0 0
Fixed Assets 0.96 0.79 0.008
0.007
Non-Current Investments 0 0 0 0
Deferred Tax Assets [Net] 0.29 33.66 0.002 0.33
Long Term Loans And Advances 0 0 0 0
Other Non-Current Assets 31.62 2.11 0.27 0.020
Total Non-Current Assets 32.87 36.56 0.28 0.36
CURRENT ASSETS
Current Investments 10,069.68 9,146.19 88.81 91.017
Trade Receivables 0 9.17 0 0.091
Cash And Cash Equivalents 3.22 2.36 0.028 0.02
Short Term Loans And Advances 1,142.58 563.98 10.07 5.61
Other Current Assets 89.47 290.62 0.78 2.89
Total Current Assets 11,304.95 10,012.32 99.71 99.63
Total Assets 11,337.82 10,048.88 100 100
Common Size Statement Analysis Of L&T Finance For Balance Sheet
• The total Non-Current liability has slightly decreased.
• There is decrease in the Other Current Liabilities of the company as compared to the previous year.
• The total Current liabilities has also decreased.
• The fixed asset of the company has decreased as compare to the previous year.
• The Other Current Assets has increased.
Trend Analysis for the year ended on 2018,2109 and 2020 (in crore)
Particulars March 2018 March March
2019 2020

Income
Revenue from operation 454.88 482.11 475.44
Base(in %) 100 106.06 104.59
Other Income 23.24 44.37 46.94
Base(in %) 100 190.92 201.97
Total 477.82 526.48 522.38
Base(in %) 100 110.183 109.324

Expenditure
Employee benefit expense 10.03 15.08 26.72
Base(in %) 100 150.348 266.400
Finance cost 161.96 202.05 200.75
Base(in %) 100 124.735 123.95
Depreciation expense 0.02 0.11 0.48
Base(in %) 100 550 2400
other expenses 11.13 9.12 10.57
Base(in %) 100 81.94 94.968
Provisions and Contingencies 1.98 -3.91 0.12
Base(in %) 100 -197.47 6.06
Total expense 185.12 222.45 238.64
Base(in %) 100 120.165 128.91
Profit/loss before exceptional items and tax 292.07 304.03 283.74
Base(in %) 100 103.87 96.94
PAT 266.05 267.06 267.05
Base(in %) 100 100.3796 100.375

Profit/ loss for the period 266.05 267.06 266.81

Base(in %) 100 100.3796 100.2856

• There we have taken 2018 as the days and according to this we will do the trade analysis.
• If we see on the details of 2019 it as injuries as complaint 2018 but decrease be compared to 2020.
• Other income gave increased from 2018 to 2019 and 2019 to 2020.
• Even the employee benefits have also increased in 2019 and in 2020.
• Finance cost increase in 2019 compared to 2018 but as decreased in 2020 compared to 2019
• Depreciation expenditure has been continually 2018 to 2019 in 2019 to 2020.
• So company should Reduce such obsolete asset which cause much and acquire new assets.
• Other expenses in 2018 was 11.13 & 2019 was 9.12 which decreased & 2020 10.57 which increased.
• Provision & contingencies is very bad for the company.
• Total expenses has been seen in the increasing trend.
• P/L before extraordinary items & tax has increased in 2019 compared to 2018 but has decreased in 2020
compared to 2019.
• PAT has increased in 2019 compared to 2018 and then had been stable.
Ratio Analysis

1. Current Ratio: Current Assets / Current liabilities

Current Assets – 11304.95
Current liabilities – 19.76
Current ratio – 5.72

2. Liquid Ratio : Liquid Assets / Liquid liabilities

Liquid Assets: 11301.73
Liquid Liability: 19.76
Liquid Ratio: 5.71

3. Debt to equity ratio : Total debt / Shareholder’s fund

Total Debt : 1775.13
Shareholder’s fund : 9562.69
Debt to equity ratio : 0.1856 : 1
Comment - According to the equity ratio i.e 0.1856 : 1 we can say the company have ever borrowing

4. Total asset to total debt ratio : Total asset / debt

Total Asset – 11337.82
Total Debt – 1775.13
Total asset to debt ratio – 6.3 : 1
Comment – According to total asset to debt ratio i.e 6.3:1 we can say that the company have more
asset compare to debt.

5. Proprietor ratio : Shareholder’s fund / Total asset

Shareholder’s fund – 9562.69
Total asset – 11337.82
Proprietor ratio – 0.84:1
Comment – According to proprietor ratio i.e 0.84:1 we can say that 84% of the asset of the company
have came from shareholders fund.

6. Working capital turnover ratio : Revenue from operations / Working capital

Revenue from operations : 475.44
Working capital : 11285.19
Working capital turnover ratio : 0.0421:1
Comment – According to working capital turnover ratio i.e 0.0421:1 we can say that company can not
raise the additional funds .

7. Net Profit : Net profit / sales

Net profit : 266.81
Sales ; 475.44
Net profit ratio : 0.56
Comment : According to net profit ratio i.e (0.56) we can considered good for the company.

8. Return on investment : PBIT / capital employed

PBIT : 283.74
Capital Employed : 11318.06
Return on investment : 0.025
Comment – According to the return on investment ratio i.e 0.025% we can say that company return is
law.
 MUTHOOT FINANCE

INTRODUCTION
Muthoot Finance Limited is the largest gold financing company in India in terms of loan portfolio. The company
provides personal and business loans secured by gold jewellery or Gold Loans primarily to individuals who possess
gold jewellery but could not access formal credit within a reasonable time or to whom credit may not be available at
all to meet unanticipated or other short-term liquidity requirements. The company is headquartered in Kerala. The
company's wholly-owned subsidiary Muthoot Insurance Brokers Pvt Limited (MIBPL) is licensed as a direct broker
by IRDAI since 2013 and is actively distributing both life and non-life insurance products of various insurance
companies. Muthoot Finance's another wholly-owned subsidiary Muthoot Homefin (India) Limited is a housing
finance company with a focus on affordable housing finance. Muthoot Finance's subsidiary Belstar Investment and
Finance Private Limited (BIFPL) is a microfinance company. Muthoot Finance holds 66.61% of equity share capital
of BIFPL. Muthoot Finance's foreign subsidiary Asia Asset Finance PLC (AAF) Colombo is involved in Retail
Finance Hire Purchase & Business Loans. Muthoot Finance Ltd was incorporated on March 14 1997 as a private
company with the name The Muthoot Finance Pvt Ltd. The company is promoted by M G George Muthoot George
Thomas Muthoot George Jacob Muthoot and George Alexander Muthoot.

BALANCE SHEET OF MAR 20 MAR 19 Percentage of balance- Percentage

MUTHOOT FINANCE (in Rs. Cr.) sheet total of balance-
march-2020 sheet total
march-
2019

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS

Equity Share Capital 401.04 400.66 0.730735515 0.960014

TOTAL SHARE CAPITAL 401.04 400.66

0.730735515 0.960014

Reserves and Surplus 11,414.94 9,514.07 20.79917728 22.79649

TOTAL RESERVES AND 11,414.94 9,514.07

SURPLUS 20.79917728 22.79649

TOTAL SHAREHOLDERS 11,829.21 9,931.20

FUNDS 21.5540192 23.79597

Minority Interest 172.14 142.38 0.313656522 0.341154

NON-CURRENT LIABILITIES

Long Term Borrowings 10,923.65 8,996.09 19.90399713 21.55537

Deferred Tax Liabilities [Net] 15.10 1.03 0.02751373 0.002468

Other Long Term Liabilities 131.54 103.11 0.239679208 0.24706

Long Term Provisions 371.23 216.53 0.676418674 0.518824

TOTAL NON-CURRENT 11,441.52 9,316.77

LIABILITIES 20.84760874 22.32374

CURRENT LIABILITIES

Short Term Borrowings 30,011.54 21,131.42 54.68406676 50.63261

Trade Payables 222.03 166.41 0.404561157 0.398732

Other Current Liabilities 1,205.25 1,046.63 2.19608762 2.507811

Short Term Provisions 0.00 0.00 0 0

TOTAL CURRENT LIABILITIES 31,438.82 22,344.45 57.28471554 53.53913

TOTAL CAPITAL AND 54,881.69 41,734.80

LIABILITIES 100 100

ASSETS

NON-CURRENT ASSETS

Tangible Assets 275.09 221.28 0.505425948 0.530205

Intangible Assets 8.54 7.99 0.015560745 0.019145

Capital Work-In-Progress 28.74 22.83 0.052367192 0.054703

FIXED ASSETS 312.36 252.09 0.569151569 0.604028

Non-Current Investments 0.00 00.00 0 0

Deferred Tax Assets [Net] 17.10 36.94 0.031157933 0.088511

Long Term Loans And Advances 0.00 0.00 0 0

Other Non-Current Assets 94.87 77.37 0.172862753 0.185385

TOTAL NON-CURRENT 454.33 396.40

ASSETS 0.827835294 0.949807

CURRENT ASSETS
Current Investments 630.22 211.13 1.148324696 100

Inventories 0.00 0.00 0 0

Trade Receivables 8.98 21.68 0.01636247 0.051947

Cash And Cash Equivalents 6,130.65 2,203.48 11.17066548 5.279719

Short Term Loans And Advances 47,067.74 38,726.33 85.76219136 92.79146

Other Current Assets 589.77 175.79 1.074620698 0.421207

TOTAL CURRENT ASSETS 54,427.36 41,338.40 99.17216471 99.05019

TOTAL ASSETS 54,881.69 41,734.80 100 100

OTHER ADDITIONAL
INFORMATION

CONTINGENT LIABILITIES,
COMMITMENTS

Contingent Liabilities 1,759.87 1,038.28 3.206661457 2.487804

BONUS DETAILS

Bonus Equity Share Capital 252.00 252.00 0.459169534 0.603813

NON-CURRENT
INVESTMENTS

Non-Current Investments Quoted 0.00 0.00

Market Value 0 0

Non-Current Investments 0.00 0.00

Unquoted Book Value 0 0

CURRENT INVESTMENTS

Current Investments Quoted 0.00 0.00

Market Value 0 0

Current Investments Unquoted 630.22 211.13

Book Value 1.148324696 0.505885
Statement Analysis of Muthoot Finance Ltd. Balance Sheet
• The total reserves and surplus of the company has increased as compare to previous year.
• The total Non-Current liability has also increased.
• There is increase in the trade payable of the company as compared to the previous year.
• The total Current liabilities has increased.
• The intangible of the company has slightly increased same which is considered good for the company.
• The fixed asset of the company has increased as compare to the previous year.
• The current investment has increased by30% approximately.
• The total Non-current asset has also increased in the company comparatively.
• The liquidity in the form of the cash and cash equivalent has increased which can be considered good
for the company.
• The other current asset has been increased.
 PROFIT & LOSS

PROFIT & LOSS ACCOUNT MAR 20 MAR 19 ABSOLUTE ABSOLUTE

OF MUTHOOT FINANCE (in CHANGE CAHNGE(INC
Rs. Cr.) (INCREASE OR REASE OR
DECREASE) DECREASE

In Percent

INCOME

REVENUE FROM 9,683.98 7,594.43

OPERATIONS [GROSS] 2,089.55 27.51424

Less: Excise/Service Tax/Other 0.00 0.00

Levies 0.00 0

REVENUE FROM 9,683.98 7,594.43

OPERATIONS [NET] 2,089.55 27.51424

TOTAL OPERATING 9,683.98 7,594.43

REVENUES 2,089.55 27.51424

Other Income 23.29 6.62 16.67 251.8127

TOTAL REVENUE 9,707.27 7,601.05

2,106.22 27.70959

EXPENSES

Cost Of Materials Consumed 0.00 0.00 0.00 0

Operating And Direct Expenses 0.00 0.00 0.00 0

Employee Benefit Expenses 1,208.49 1,013.34 195.15 19.2581

Finance Costs 3,172.84 2,535.47 637.37 25.13814

Depreciation And Amortisation 59.24 51.69

Expenses 7.55 14.60631

Other Expenses 819.22 673.17 146.05 21.69586

TOTAL EXPENSES 5,446.88 4,341.52 1,105.36 25.46021

PROFIT/LOSS BEFORE 4,260.39 3,259.53

EXCEPTIONAL,
EXTRAORDINARY ITEMS
AND TAX 1,000.86 30.70565
Exceptional Items 0.00 0.00 0.00 0

PROFIT/LOSS BEFORE TAX 4,260.39 3,259.53 1,000.86 30.70565

TAX EXPENSES-CONTINUED
OPERATIONS

Current Tax 1,077.93 1,146.67 -68.74 -5.99475

Less: MAT Credit Entitlement 0.00 0.00 0.00 0

Deferred Tax 13.73 -13.88 27.61 -198.919

Other Direct Taxes 0.00 0.00 0.00 0

TOTAL TAX EXPENSES 1,091.71 1,156.57 -64.86 -5.60796

PROFIT/LOSS AFTER TAX 3,168.68 2,102.96

AND BEFORE
EXTRAORDINARY ITEMS 1,065.72 50.67714

PROFIT/LOSS FROM 3,168.68 2,102.96

CONTINUING OPERATIONS 1,065.72 50.67714

PROFIT/LOSS FOR THE 3,168.68 2,102.96

PERIOD 1,065.72 50.67714

Minority Interest -30.44 -24.95 -5.49 22.00401

CONSOLIDATED 3,138.25 2,078.01

PROFIT/LOSS AFTER MI AND
ASSOCIATES 1,060.24 51.02189

OTHER ADDITIONAL
INFORMATION

EARNINGS PER SHARE

Basic EPS (Rs.) 78.00 52.00 26.00 50

Diluted EPS (Rs.) 78.00 52.00 26.00 50

DIVIDEND AND DIVIDEND

PERCENTAGE

Equity Share Dividend 1,082.35 0.00 1,082.35 0

Tax On Dividend 222.50 0.00 222.50 0

Comparative Statement Analysis of Muthoot Finance Ltd. P&L Account

• As per P&L Account it founds increase in total revenue from operations in current year as compare to
previous year.
• There is addition in EPS found in the year 2020 when we evaluate with the year 2019.
• There is increase in profit before tax with compare to previous year.
• Total expenses of the current year has little bit change as compare to the previous year.
• There is also slight increase in the depreciation expenses in the year 2020.
• There is increase in deferred tax in the current year as compared to previous year (negative).

TREND ANALYSIS
Muthoot Finance

Consolidated Profit & Loss account ------------------- in Rs. Cr. -------------------

Mar 20 Mar-19 Mar-18

12 months 12 months 12 months

INCOME
Revenue From Operations [Gross] 9,683.98 7,594.43 6,712.66

Base(%) 144.26 113.14 100%

Revenue From Operations [Net] 9,683.98 7,594.43 6,712.66

Base(%) 144.26 113.14 100%
Other Operating Revenues 0 0 0
Total Operating Revenues 9,683.98 7,594.43 6,712.66
Base(%) 144.26 113.14 100%
Other Income 23.29 6.62 69.03
Base(%) 33.74 9.59 100%
Total Revenue 9,707.27 7,601.05 6,781.69
Base(%) 143.14 112.08 100%

EXPENSES
Employee Benefit Expenses 1,208.49 1,013.34 847.99
Base(%) 142.51 119.50 100%
Finance Costs 3,172.84 2,535.47 2,127.14
Base(%) 149.16 119.20 100%
Provisions and Contingencies 187.08 67.85 271.3
Base(%) 68.96 25.01 100%

Depreciation And Amortisation Expenses 59.24 51.69 51.93

Base(%) 114.08 99.54 100%

Other Expenses 819.22 673.17 541.26
Base(%) 151.35 124.37 100%
Total Expenses 5,446.88 4,341.52 3,839.61
Base(%) 141.86 113.07 100%
Profit/Loss Before Exceptional, Extra Ordinary
4,260.39 3,259.53 2,942.08
Items And Tax
Base(%) 144.81 110.79 100%
Profit/Loss Before Tax 4,260.39 3,259.53 2,942.08
Base(%) 144.81 110.79 100%

Tax Expenses-Continued Operations

Current Tax 1,077.93 1,146.67 1,041.15
Base(%) 103.53 110.13 100%
Deferred Tax 13.73 -13.88 46.7
Base(%) 29.40 -29.72 100%
Tax For Earlier Years 0.05 23.78 10.48
Base(%) 0.48 226.91 100%
Total Tax Expenses 1,091.71 1,156.57 1,098.33
Base(%) 99.40 105.30 100%

Profit/Loss After Tax And Before Extra-

3,168.68 2,102.96 1,843.75
Ordinary Items
Base(%) 171.86 114.06 100%
Profit/Loss From Continuing Operations 3,168.68 2,102.96 1,843.75

Base(%) 171.86 114.06 100%

Profit/Loss For The Period 3,168.68 2,102.96 1,843.75
Base(%) 171.86 114.06 100%
Minority Interest -30.44 -24.95 -13.92
Base(%) 218.68 179.24 100%
Consolidated Profit/Loss After MI And
3,138.25 2,078.01 1,829.83
Associates
Base(%) 171.51 113.56 100%

Trend Analysis of Muthoot Finance Ltd. For The Year Ending 2018,2019&2020
• Here we have taken 2018 as the base year and according to this we will do the trend analysis.
• If we focus on the sales it has definitely increased from year 2018 to 2019, but there is the down slop found in
the year 2020.
• On the other hand there is also less cost of raw material consumed in the year 2020 in comparison with the last
2 years.
• Purchase was high in the 2019 but it again declined in the year 2020.
• On the other hand depreciation expense has been increased from the previous year.
• The profit before tax is in the favourable in all the year.
• The profit after the tax for the year 2019 has been less as compare to previous year.
• There is not much change in the finance cost.
• Other expense is more in the year 2019 comparatively.
Ratio Analysis
Current Ratio: Current Assets/Current Liabilities
Current Assets= 54,427.36
Current liabilities= 31,438.82
Current Ratio= 54427.36/31438.82 = 1.73:1
Ascurrentration is 1.73:1 which shows company have better capacity to meet its current
Obligation and the ideal current ratio.

Liquid Ratio : Liquid assets/Current Liabilities

Liquid assets= Current Assets–Inventories–Prepaid expenses
Liquid Assets=54427.36 – 0 - 5,446.88 = 48980.48
Current Liabilities= 31,438.82
Liquid Ratio=48980.48/ 31438.82 = 1.558
As the ratiois1.558 which means company have better short term financial position as the deal

Debt to Equity Ratio=Debt/Equity(Shareholder’s Fund)

Debt=Long-term borrowings + Long term provisions
=10,923.65+ 371.25 = 11294.9

Equity= 54,881.69
Debt to Equity=11294.9/54,881.69= 0.2058

As the ratio is 0.2058:1 which means lower the ratio is better for the company. Lower the debt to equity
ratio higher the degree of protection enjoyed by the lenders.

Total asset to Debt ratio : Total asset/Debt

Debt =Long-term borrowings +Long term provisions
=72082.01+ 175.8 =72257.81
Total assets = 2,51,384.19
Total assets to Debt ratio = 2,51,384.19/72257.81 = 3.4789

As ratio is 3.4789:1 and ideal ratio is which means company is going well assist assets covers its debt
As its total asset area most thrice the debt.
Proprietary Ratio=Shareholder’s fund/Total Assets
Shareholder’s fund= 31,301.25
Total assets= 2,51,384.19
Proprietary Ratio= 31,301.25/2,51,384.19 = 0.1245

Working Capital Turnover Ratio = Revenue from operations/Working Capital

Working Capital=Current assets–current liabilities
= 54,427.36 - 31,438.82 = 22988.54