A Project Report

On

Financial Statement analysis of selected companies of ___________ Industry.

Submitted By:

Class: F4/F5

NAMES ENROLLMENT NO

Submitted to:

Dr. HITEKSHA UPADHYAY

MBA programme

Batch: 2021-23

(Semester - I)

1
 INDEX
SR NO. TITLE PAGE
NO.
1 PVR LIMITED 3
2 Balaji Telefilms Limited 13
3 Tips Ltd. Industry 26
4 Reliance Entertainment 35
5 Reliance Entertainment 45
6 Cash flow of mukta arts:- 56

2
 PVR LIMITED

Comparative Statement of profit and loss of the year ended 2017-2018 (in lakhs)
Absolute
change Absolute change
(Increase or in %(increase or
Particulars 31-03-2017 31-03-2018 decrease) decrease)
Revenue for operation 200201 224612 24411 12.19%
other income 6018 2953 -3065 -50.93%
total revenue 206219 227565 21346 10.35%
Expenses
movie exhibition cost 49376 55583 6207 12.57%
Consumption of food and beverages 13219 15468 2249 17.01%
Finance cost 7997 8335 338 4.23%
Depreciation and amortisation 12239 14119 1880 15.37%
other operating expenses 87657 90805 3148 3.59%
Employee benefits expenses 20522 24198 3676 17.91%
Total expenses 191010 208508 17498 9.16%

Profit before exceptional items

and tax 15209 19057 3848 25.30%
exceptional items 495 59 -436 -88.08%
profit before tax 14714 18998 4284 29.11%
current tax 3156 4598 1442 45.69%
deferred tax 2266 2258 -8 -0.35%
Total tax expense 5422 6856 1434 26.44%
Profit after tax 9292 12142 2850 30.67%

3
Comparative statement analysis of PVR ltd. for profit and loss account:-

 Revenue for operations increased by 12.19% which good for company.

 Current tax has increased to 45.69% so company should do tax planning.
 As employee benefit expenses got increased by 17.91% which is good for employees but a big expense for
company.
 Depreciation got increased by 15.37% so company should acquire new assets and expel their old assets
 Cost of consumption for food and beverages got increased by 17.01% which is not good for company so
company should reduce the expenses.
 As total expenses got increased by 9.16% and other income for the year 2018 got decreased by 50.93%
which is not good for the company.
 Exceptional items got decreased by 88.08% which is good for the company.

4
Common size balance sheet as at 31-3-2017 to 2018 (in lakhs)
Percentage of Balance
Absolute Amounts SheetTotal
31-03- 31-03-2018 31-03-2017
Particulars 2017(Rs.) 9Rs.) (%) 31-03-2018 (%)
Equity and Liabilities
Equity
Equity share capital 4674 4674 2.18% 2.03%
other equity 90623 100943 42.28% 44.05%
total equity
(A) 95297 105617 44.46% 46.09%

Liabilities
Non-current liabilities
Financial liabilities
Borrowings 60504 56156 28.23% 24.50%
Provisions 623 940 0.29% 0.41%
Total non-current liabilities
(B) 61127 57096 28.52% 24.91%

Current liabilities
Financial liabilities
Borrowings 12443 9875 5.80% 4.30%
Trade payables 18244 23489 8.51% 10.25%
other payables 20020 24131 9.34% 10.53%
Provisions 298 261 0.13% 0.11%
other current liabilities 6887 8680 3.21% 3.78%
Total current liabilities
(C) 57892 66436 27.01% 28.99%

Total liabilities (B+C) 119019 123532 55.53% 53.90%

Total equity and liabilities 214316 229149 100% 100%

5
(A+B+C)

Assets
Non-current assets
Property, plant and equipment 97947 112170 45.70% 48.95%
Capital work-in-progress 10522 10169 4.90% 4.43%
Goodwill 42660 42660 19.90% 18.61%
Other Intangible asset 1493 1509 0.69% 0.65%
Investments in subsidiaries 7292 3239 3.40% 1.41%
Financial assets
Investments 101 1760 0.04% 0.76%
Other financial assets 17337 2130 8.08% 0.92%
deferred tax assets 4310 1560 2.01% 0.68%
Other non-current assets 10209 10509 4.76% 4.58%
Total non-current assets 191871 204926 89.52% 89.42%

Current assets
Inventories 1692 1854 0.78% 0.80%
Financial assets
Investments 96 106 0.04% 0.04%
Trade receivables 820 13650 0.38% 5.95%
Cash and cash equivalents 1264 1748 0.58% 0.76%
Other bank balances 506 503 0.23% 0.21%
Loans 2527 102 1.17% 0.04%
Other financial assets 3674 3249 1.71% 1.41%
Other current assets 3866 3011 1.80% 1.31%
Total current assets 22445 24223 10.47% 10.57%

Total Assets [A+B] 214316 229149 100% 100%

6
Common size statement analysis of PVR ltd. for Balance sheet:-

 Total equity got increased to 46.09% of total equity and liabilities from 44.46%.
 Total liabilities are decreased to 53.90% from 55.53% which is good for company.
 Borrowings got decreased which are 24.50% of the total equity and liabilities from 28.23%.
 Property, plant and equipment which are 48.95% of total assets got increased from 45.70%.
 Loans in 2017 were 1.17% of total assets which have now decreased to 0.04% which good for the
company.
 Trade receivable were 0.38% of the total assets in 2017 now increased to 5.95% in 2018 so company should
turn their debtors into cash.
 Investment in subsidiary were 3.40% in 2017 of total assets now decreased to 1.41% in 2018.
 Total non-current liabilities were 28.52% of total equities and liabilities in 2017 now decreased to 24.91%
in 2018 which is good for the company .
 Earlier trade payables were 8.51% which have increased to 10.25% in 2018 so company should see to pay
their trades in cash.

7
Trend analysis for the year ended 2017,2018 and 2019 (in lakhs)

Particulars 31-03-2017 31-03-2018 31-03-2019

Revenue for operation 200201 224612 308556
Base(%) 100 112.1932458 154.1231063
other income 6018 2953 3314
Base(%) 100 49.06945829 55.06812895
total revenue 206219 227565 311870
Base(%) 100 110.3511316 151.2324277
Expenses
movie exhibition cost 49376 55583 70193
Base(%) 100 112.5708846 142.1601588
Consumption of food and beverages 13219 15468 23874
Base(%) 100 117.0133898 180.6036765
Employee benefits expenses 20522 24198 33726
Base(%) 100 117.9124842 164.3407075
Finance cost 7997 8335 12801
Base(%) 100 104.226585 160.0725272
Depreciation and amortization 12239 14119 19128
Base(%) 100 115.3607321 156.2872784
other operating expenses 87657 90805 122130
Base(%) 100 103.5912705 139.3271501
Total expenses 191010 208508 281852
Base(%) 100 109.1607769 147.5587666
Profit before exceptional items and tax 15209 19057 30018
Base(%) 100 125.3008087 197.3699783
exceptional items 495 59 -
Base(%) 100 11.91919192
profit before tax 14714 18998 29903
Base(%) 100 129.1151284 203.228218

8
 current tax 3156 4598 10010
Base(%) 100 145.6907478 317.1736375
deferred tax 2266 2258 794
Base(%) 100 99.64695499 35.03971756
Total tax expense 5422 6856 10966
Base(%) 100 126.4478052 202.2500922
Profit after tax 9292 12142 18937
Base(%) 100 130.6715454 203.7989669

Trend Analysis of PVR ltd. For the year ending 2016-2017,2017-2018 and 2018-2019.

 Total tax expenses are gradually increasing from 100% in 2017 to 126.45% in 2018 to 202.25% in 2019 so
it is required for the company to do tax planning.
 Because of current tax increased to 317.17% in 2019 as compared to 2018 which were 145.69% of the base
year 2017 causes increased in total tax of the company.
 Finance cost got increased to 160.07% in 2019 from 104.22% in 2018 which is not good for the company
so it is suggested to the company to do financial planning.
 Profit before tax of the company is gradually increasing from 100% in 2017 to 129.11% in 2018 to
203.22% in 2019 which is good for the company.
 Consumption for food and beverages have been increased from last year to 180% , so company should see
for minimise such cost.
 Profit after tax has been increased from the last two years to 203.79% which is good for the company.
 Depreciation and amortisation expense has increased to 156.28% , so company should look to reduce such
obsolete assets which causes much depreciation and acquire new assets in change
 Movie exhibition cost has been increased to 142% , company should take necessary steps to reduce such
cost.
 Revenue from operations have increased to 154.12% in the year 2018-19 which is good for company.
 Other operating expenses has been increased to 139.32% which contributes as one of the major elements to
increase total expenses

9
 Ratio analysis for PVR ltd.
1) Current Ratio: Current Assets/ Current Liabilities

Current Assets = 39336

Current liabilities =105323

Current Ratio = 0.37:1

As current ratio is 0.37: 1 which shows company do not have better capacity to meet its current obligation and the
ideal current ratio is 2: 1.

2) Liquid Ratio : Liquid assets / Current Liablities

Liquid assets = Current Assets – Inventories – Prepaid expenses

Liquid Assets = 39336 – 3034 = 36302

Current Liablities = 105323

Liquid Ratio= 36302 / 105323

= 0.34:1

As the ratio is 0.34:1 which means company do not have better short term financial position as the deal ratio is 1:1.

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

Debt = Long-term borrowings + Long term provisions

= 101876 + 1825 =103701

Equity = 149611

Debt to Equity = 103701 / 149611

= 0.69:1

As the ratio is 0.69:1 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

10
Debt = Long-term borrowings + Long term provisions

= 101876 + 1825

=103701

Total assets =390896

Total assets to Debt ratio = 390896 / 103701

= 3.76:1

As ratio is 3.76:1 and ideal ratio is 2 : 1 which means company is going well as its assets covers its debt as its total
assets are almost thrice the debt.

5) Proprietary Ratio = Shareholder’s fund / Total Assets

Shareholder’s fund = 149611

Total assets =390896

Proprietary Ratio = 149611 / 390896

= 0.38:1

6) Working Capital Turnover Ratio = Revenue from operations / Working Capital

Working Capital = Current assets – current liabilities

=390896-105323

=285573

Revenue from operations = 308556

Working Capital Turnover Ratio = 308556 / 285573

=1.08:1

7) Net profit Ratio = Net profit after tax * 100 / Revenue from operations

Net profit after tax = 18937

= 18937*100 / 308556
11
=6.13%

8) Return on investment = Profit before interest, tax and dividend * 100 / Capital employed Profit before
interest, tax and dividend = 29903

Capital employed = share capital + reserve and surplus + long-term borrowing + long-term provisions

=149611+101876+1825=253312

= 29903*100 / 253312

=11.80%

12
Balaji Telefilms Limited

Comparative Statement of profit and loss a/c

Increase or Increase or
Particulars 31-03-2017 31-03-2018
Decrease Decrease in %
Revenue from operations 41867.05 41331.79 -535.26 -1.28%
Other Income 2027.31 1902.65 -124.66 -6.15%
Total Income 43894.36 43234.44 -659.92 -1.50%
Expenses
cost of production 30847.09 30145.98 -701.11 -2.27%
changes in inventories 2725.53 2227.72 -497.81 -18.26%
distribution expenses 3643.38 5518.89 1875.51 51.48%
employee benefit expense 2834.32 3114.49 280.17 9.88%
finance costs 3.62 5 1.38 38.12%
depreciation expenses 1254.02 1770.62 516.6 41.19%
other expenses 3874.2 5503.02 1628.82 42.04%
total expenses 45182.16 48285.72 3103.56 6.87%
(Loss)before share of net
profit -1287.8 -5051.28 -3763.48 292.24%
Add :share of net/profit of
associates 0.62 -0.05 -0.67 -108.06%
(Loss)before items and tax -1287.18 -5051.33 -3764.15 292.43%
Less :exceptional items - 905.07 905.07 -
(Loss)before tax -1287.18 -5956.4 -4669.22 362.75%
Tax Expenses:
current tax 1677.63 1309.38 -368.25 -21.95%
deferred tax 47.8 -1771.77 -1819.57 -3806.63%
provision for tax -39.09 -860.69 -821.6 2101.82%
Total tax expense 1686.34 -1323.08 -3009.42 -178.46%
(Loss)for the year -4633.32 -2973.52 1659.8 -35.82%
other comprehensive income

13
 Remeasurementof the defined
benefit liabilities -14.65 -12.46 2.19 -14.95%
income tax relating to items that
will not be to profit or loss 4.35 1.97 -2.38 -54.71%
Total another income of the
year -10.3 -10.49 -0.19 1.84%
Total comprehensive income
of the year -2983.82 -4643.81 -1659.99 55.63%
(Loss)for the year attributable
to:
owners of the company -2814.91 -4515.26 -1700.35 60.41%
non-controlling interest -158.61 -118.06 40.55 -25.57%
Other comprehensive income
for the year attributable to:
owners of the company -10.3 -10.49 -0.19 1.84%
Total comprehensive income
of the year attributable to:
owners of the company -2825.21 -4525.76 -1700.55 60.19%
non-controlling interest -158.61 -118.06 40.55 -25.56%
Basic and diluted earnings per
share attributable to owners
of the company(in Rs.) -3.71 -4.95 -1.24 33.42%

Comparative statement analysis of Balaji Telefilms ltd. For profit and lossA/C:-

 Revenue for operations decreased by -1.28% which is bad for company.

 Current tax has decreased to -21.95%.
 As employee benefit expenses got increased by 9.88% which is good for employees but a big expense for
company.
 Depreciation got increased by 41.19% so company should acquire new assets and expel their old assets.

14
 As total expenses got increased by 6.87% and other income for the year 2018 got decreased by -6.15%
which is good for the company.
 Cost of production was reduced by -2.27% which is not good for the company.
 Other expenses of the company got increased by 42.04% so company should reduce the unnecessary
expenses.

15
Common size balance-sheet as at 2017 to 2018
31-03-2017 31-03-2018
Particulars
Amount(Rs.) % Amount(RS.) %
ASSETS
Non-current assets
Property, plant 3473.56 5.47% 3233.87 3.41%
capital work-in-progress 1061.23 1.67% 226.79 0.24%
Goodwill on consolidation 146.91 0.23% 146.91 0.15%
other intangible assets 10.3 0.02% 795.04 0.84%
Financial assets
(1)investments 4037.43 6.36% 3166.88 3.34%
(2)Loans 866.63 1.36% 913.1 0.96%
(3)other financial assets 323.63 0.51% 371.66 0.39%
Deferred tax assets(net) 912.17 1.44% 1963.69 2.07%
Current tax assets(net) 2664.88 4.19% 2280.71 2.40%
other non- current assets 3799.73 5.98% 5773.76 6.08%
Total non -current assets 17296.47 27.23% 18872.41 19.88%

Current Assets
Inventories 9830.97 15.48% 12780.47 13.47%
Financial assets
(1)Investments 15720.65 24.75% 44206.15 46.57%
(2) trade receivables 9760.74 15.36% 9346.9 9.85%
(3)cash and cash
equivalents 1592.03 2.51% 2196.14 2.31%
(4) other balances with
bank 0.58 0.001% 0.58 0.001%
(5) Loans 24.5 0.04% 398.72 0.42%
(6) other financial assets 680.51 1.07% 1113.06 1.17%
other current assets 8619.06 13.57% 6000.37 6.32%
Total Current assets 46229.04 72.77% 76042.39 80.12%
Total Assets 63525.51 100% 94914.8 100%

EQUITY

16
 Share capital 1518.61 2.39% 2022.61 2.13%
other equity
(1) equity component of
compound financial
instrument 43.62 0.07% 66.45 0.07%
(2) reserves & surplus 49159.38 77.38% 83263.59 87.72%
Equity attributable to
owners of the company 50721.61 79.84% 85352.65 89.92%
Non -controlling interests -310.62 -0.49% -392.81 -0.41%
Total Equity 50410.99 79.35% 84959.84 89.51%

LIABILITIES
Non -current liabilities
Financial liabilities
(1) borrowings 6.38 0.01% 8.33 0.009%
Provisions 17.92 0.02%
Deferred tax liabilities
(net) 721.34 1.14%
Total non- current
liabilities 727.72 1.15% 26.25 0.03%
Current liabilities
financial liabilities
(1) trade payables 7190.48 11.32% 7438.67 7.84%
(2)other liabilities 982.99 1.55% 381.44 0.40%
other current liabilities 2997.86 4.72% 1454.38 1.53%
current tax liabilities 1215.47 1.91% 654.22 0.69%
Total current liabilities 12386.8 19.50% 9928.71 10.46%
Total Equity &
Liabilities 63525.51 100% 94914.8 100%

Common size statement analysis of Balaji Telefilms ltd. for Balance-sheet:-

 Total equity got decreased to 2.13% of total equity and liabilities from 2.39%.
 Total liabilities are decreased to 10.46% from 19.50% which is good for company.
17
 Property, plant and equipment which are 3.41% of total assets got decreased from 5.47%.
 Loans in 2017 were 1.37% of total assets which have now decreased to 0.96% which good for the
company.
 Trade receivable were 15.36% of the total assets in 2017 now decreased to 9.85% in 2018 so company
should turn their debtors into cash.
 Earlier trade payables were 11.32% which have decreased to 7.84% in 2018 so company should see to pay
their trades in cash.

18
TREND ANALYSIS of P & L A/C
Particulars 2016-17 2017-18 2018-19
Revenue from operations 41867.05 41331.79 42770.87
Base 100% 98.72 102.16
Other Income 2027.31 1902.65 3176.67
Base 100% 93.85 156.69
Total income 43894.36 43234.44 45947.54
Base 100% 98.50 104.68

Expenses

cost of production 30847.09 30145.98 40044.69

Base 100% 97.73 129.82
changes in inventories 2725.53 2227.72 -2447.28
Base 100% 81.74 -89.79
distribution expenses 3643.38 5518.89 4312.16
Base 100% 151.48 118.36
employee benefit expense 2834.32 3114.49 4956.52
Base 100% 109.88 174.88
finance costs 3.62 5 2.22
Base 100% 138.12 61.33
depreciation expenses 1254.02 1770.62 1806.39
Base 100% 141.20 144.05
other expenses 3874.2 5503.02 6415.69
Base 100% 142.04 165.60
total expenses 45182.16 48285.72 55090.39
Base 100% 106.87 121.93
(Loss)before share of net profit -1287.8 -5051.28 -9142.85
Base 100% 392.24 709.96
Add :share of net/profit of associates 0.62 -0.05
Base 100% -8.06
(Loss)before items and tax -1287.18 -5051.33 -9142.85
Base 100% 392.43 710.30

19
Less: exceptional items 905.07
Base
(Loss)before tax -1287.18 -5956.4 -9142.85
Base 100% 462.75 710.30

Tax Expenses:

current tax 1677.63 1309.38 695.81

Base 100% 78.05 41.48
deferred tax 47.8 -1771.77 -63.23
Base 100% -3706.63 -132.28
provision for tax -39.09 -860.69
Base 100% 2201.82
Total tax expense 1686.34 -1323.08 632.58
Base 100% -78.46 37.51
(Loss)for the year -2973.52 -4633.32 -9775.43
Base 100% 155.82 328.75

other comprehensive income

Remeasurementof the defined benefit

liabilities -14.65 -12.46 27.59
Base 100% 85.05 -188.33
income tax relating to items that will
not be to profit or loss 4.35 1.97 2.01
Base 100% 45.29 46.21
Total another income of the year -10.3 -10.49 29.6
Base 100% 101.84 -287.38
Total comprehensive income of the
year -2983.82 -4643.81 -9745.83
Base 100% 155.63 326.62

(Loss)for the year attributable to:

owners of the company -2814.91 -4515.26 -9735.33

20
 Base 100% 160.41 345.85
non-controlling interest -158.61 -118.06 -40.1
Base 100% 74.43 25.28
Other comprehensive income for
the year attributable to:
owners of the company -10.3 -10.49 29.6
Base 100% 101.84 -287.38
Total comprehensive income of the
year attributable to:
owners of the company -2825.21 -4525.76 -9705.73
Base 100% 160.19 343.54
non-controlling interest -158.61 -118.06 -40.1
Base 100% 74.43 25.28
Basic and diluted earnings per
share attributable to owners of the
company (in Rs.) -3.71 -4.95 -9.63
Base 100% 133.42 259.57

Trend Analysis of Balaji Telefilms ltd. For the year ending 2016-2017, 2017-2018 and 2018-2019.

 Total tax expenses are gradually increasing from 100% in 2017 to 98.72% in 2018 to 102.16% in 2019 so it
is required for the company to do tax planning.
 Because of current tax reduced to 41.48% in 2019 as compared to 2018 which were 78.05% of the base
year 2017 causes increased in total tax of the company.
 Finance cost got increased to 174.88% in 2019 from 109.88% in 2018 which is not good for the company
so it is suggested to the company to do financial planning.
 Profit before tax of the company is gradually increasing from 100% in 2017 to 462.75% in 2018 to
710.30% in 2019 which is good for the company.
 Depreciation and amortisation expense has increased to 144.05%, so company should look to reduce such
obsolete assets which causes much depreciation and acquire new assets in change
 Revenue from operations have increased to 102.16% in the year 2018-19 and 98.72 in the year 2017-18
which is slightly increase.

21
 Other operating expenses have been increased to 165.60% which contributes as one of the major elements
to increase total expenses.

22
Ratio Analysis of balaji telefilms:-

1) Current Ratio=Current Assets/Current Liabilities

Current Assets=73073.36

Current Liabilities=11894.7

Current Ratio= 73073.36/11894.73

= 6.14:1

Higher ratio means better capacity to meet its current obligation. the ideal current ratio is 2:1.in case 6.14:1 is very
high it shows the idleness of funds.

2) Liquid Ratio=Liquid Assets/Liquid Liabilities

Liquid Assets=Current Assets-Inventories

=73073.36-19583.91

=53489.45

Liquid Liabilities = 11894.73

Liquid Ratio =53489.45/11894.73

= 4.50:1

As the ratio company shows better short-term financial position.

3) Debt to Equity Ratio=Debt /Equity

Debt= Long-term Borrowings+ Long-term Provisions

=10.56

Equity=76142.93

Debt Equity Ratio= 10.56/76142.93

= 0.00014: 1

4) Net Profit Ratio=Net Profit*100/Sales

Net Profit = -9775.43(Loss)

23
Sales = 42638.17

Net Profit Ratio= -9775.43*100/42638.17

= -22.93%

5) Total Assets to Debt Ratio=Total assets/Debt

Total Assets=88048.22

Debt= Long-term borrowings + Long-term provisions

= 10.56

Total assets to debt Ratio=88048.22/10.56

= 8337.90

6) Return on capital Employed=Net Profit*100/Capital Employed

Net Profit = 9775.43(Loss)

Capital Employed = Total Assets-Current Liabilities

=88048.22 – 11894.73

=76153.49

Return on capital employed = -9775.43*100/76153.49

= -12.84%

7) Proprietary Ratio = Shareholder’s Fund/Total Assets

Fund = 76142.93

Total Assets = 88048.22

Proprietary Ratio = 76142.93/88048.22 = 0.86: 1

8) Working Capital Turnover Ratio = Revenue from operations/Working Capital

Revenue from operations = 42770.87

Working Capital = Current Assets – Current Liabilities

24
= 73073.36 – 11894.73

= 61178.63

Working Capital Turnover Ratio = 42770.87/61178.63

= 0.70:1

9) Return on Investment = Profit before interest & tax*100/Capital employed

Profit before interest & tax = -9142.85(Loss)

Capital Employed = Share capital + reserve & surplus + long-term borrowings + long-term provisions

= 76142.93 + 10.56

= 76153.49

Return on Investment = -9142.85*100/76153.49

= -12.01%

10) Gross Profit Ratio = Gross profit*100/Sales

Gross Profit = 42770.87

Sales = 42638.17

Gross Profit Ratio = 42770.87*100/42638.17

= 100.31%

25
Tips Ltd. Industry

Common Size Statement Balance sheet of Tips Ltd.

Mar- Mar-
Particulars 17 18 Mar-17 (%) Mar-18(%)
Equity Share Capital 14.32 14.32 10.58 7.08
Total Share Capital 14.32 14.32 10.58 7.08
Reserves and Surplus 53.7 55.36 39.66 27.35
Total Reserves and Surplus 53.7 55.36 39.66 27.35
Total Shareholders Funds 68.02 69.68 50.24 34.43
Long Term Borrowings 49.12 13.71 36.28 6.77
Deferred Tax Liabilities [Net] 0 0 0.00 0.00
Other Long Term Liabilities 0.7 0.53 0.52 0.26
Long Term Provisions 0 0 0.00 0.00
Total Non-Current Liabilities 49.82 14.24 36.79 7.04
Short Term Borrowings 0 5 0.00 2.47
Trade Payables 1.42 4.73 1.05 2.34
Other Current Liabilities 16.14 108.74 11.92 53.73
Short Term Provisions 0 0 0.00 0.00
Total Current Liabilities 17.56 118.47 12.97 58.54
Total Capital And Liabilities 135.4 202.39 100.00 100.00
Tangible Assets 2.61 1.75 1.93 0.86
Other Assets 22 21.55 16.25 10.65
Fixed Assets 24.61 23.3 18.18 11.51
Non-Current Investments 0.23 0.11 0.17 0.05
Long Term Loans And Advances 5.24 5.22 3.87 2.58
Other Non-Current Assets 9.44 12.68 6.97 6.27
Total Non-Current Assets 39.52 41.32 29.19 20.42
Inventories 74.92 57.46 55.33 28.39
Trade Receivables 5.89 8.99 4.35 4.44
Cash And Cash Equivalents 1.09 7.88 0.81 3.89

26
Short Term Loans And Advances 0 0 0.00 0.00
Other Current Assets 13.98 86.74 10.32 42.86
Total Current Assets 95.88 161.07 70.81 79.58
Total Assets 135.4 202.39 100.00 100.00
Contingent Liabilities 16.73 18.71 12.36 9.24
Expenditure In Foreign Currency 0.7 27.25 0.52 13.46
Dividend Remittance In Foreign Currency - -
FOB Value Of Goods - -
Other Earnings 9.09 14.78 6.71 7.30
Bonus Equity Share Capital 6 6 4.43 2.96
Non-Current Investments Quoted Market
Value 0.22 - 0.16
Non-Current Investments Unquoted Book
Value 0.01 0.01 0.01 0.00
Current Investments Quoted Market Value - -
Current Investments Unquoted Book Value - -

COMMON SIZE ANALYSIS:

 Out of the total funds of rupee hundred shareholders have contributed 50 percentages in tips Limited in
base year.
 In current year shareholder contribution increased by 1.5 cr but percentage of share holder fund decrease to
34.5 percentage.
 Company paid their long term borrowing in current year so long term borrowing of company decreased
from 36% to 6.7 %.
 It is clearly visible from the balance sheet of the company that to pay long term Liability Company borrow
short term fund because of that current liability of company increased from 12.96 percentages to 58.5
percentages.
 Fixed asset of a company remain almost same in both year in the term of rupees but in the term of
percentage value of fixed asset decreased27 percentage.
 Inventory of the company decreased to 28.39 percentages which is very significant change in current year.
 Major change happening other current asset which is increased from 10.32 % to 42. 8 percentage.

27
COMPARATIVE INCOME STATEMENT OF TIPS LTD.
Mar- Mar-
Particulars 17 18 Change %

Revenue From Operations [Gross] 15.07 47.49 32.42 215.13

Revenue From Operations [Net] 15.07 47.49 32.42 215.13
Other Operating Revenues 31.95 0 -31.95 -100.00
Total Operating Revenues 47.02 47.49 0.47 1.00
Other Income 19.41 2.44 -16.97 -87.43
Total Revenue 66.43 49.93 -16.5 -24.84
Cost Of Materials Consumed 0 0 0
Operating And Direct Expenses 30.51 17.47 -13.04 -42.74
Changes In Inventories Of FG,WIP And
Stock-In Trade 0 0 0
Employee Benefit Expenses 6.61 6.61 0 0.00
Finance Costs 10.24 6.63 -3.61 -35.25
Depreciation And Amortisation Expenses 1.47 1.39 -0.08 -5.44
Other Expenses 13.3 13.83 0.53 3.98
Total Expenses 62.13 45.93 -16.2 -26.07

Profit/Loss Before Exceptional,

Extraordinary Items And Tax 4.3 4 -0.3 -6.98
Profit/Loss Before Tax 4.3 4 -0.3 -6.98
Current Tax 0.88 0.87 -0.01 1.14
Deferred Tax 0 0 0
Tax For Earlier Years 0.44 0 -0.44 -100.00
Total Tax Expenses 1.32 0.87 -0.45 -34.09
Profit/Loss After Tax And Before
ExtraOrdinary Items 2.98 3.13 0.15 5.03
Profit/Loss From Continuing Operations 2.98 3.13 0.15 5.03

28
Profit/Loss For The Period 2.98 3.13 0.15 5.03

Basic EPS (Rs.) 2.08 2.19 0.11 5.29

Diluted EPS (Rs.) 2.08 2.19 0.11 5.29
Equity Share Dividend 1.43 1.43 0 0.00
Tax On Dividend 0.29 0.29 0 0.00
Equity Dividend Rate (%) 10 10 0 0.00
COMPARATIVE ANALYSIS OF PROFIT AND LOSS ACCOUNT OF TIPS LTD.
 Revenue from operation is increased by 32.42 cr or increased by 215.15 percentage which is very huge
improvement in revenue.
 Here noted point is revenue from other income is a drastically decrease by 87.429 percentage from the
previous year.
 Operating and direct expenses is decreased by 42.74 percentage from the previous year which shows the
excellent management and organizing skill of company.
 Finance cost decrease by 35. 25 percentages it shows the proactiveness and financial planning of
Management.
 As we can see no significant change in depreciation, other expenses, tax and different tax from previous
year.
 Net profit in the absolute term remains almost constant profit increase only 0.15 percentages from the
previous year.

29
P& L TREND ANALYSIS OF TIPS LTD.
Mar- Mar- Mar Mar- Mar- Mar-
Particulars 17 18 19 17% 18(%) 19(%)

Revenue From Operations [Gross] 15.07 47.49 203.24 100 315.13 1348.64
Revenue From Operations [Net] 15.07 47.49 203.24 100 315.13 1348.64
Other Operating Revenues 31.95 0 0 100 0.00 0.00
Total Operating Revenues 47.02 47.49 203.24 100 101.00 432.24
Other Income 19.41 2.44 4.48 100 12.57 23.08
Total Revenue 66.43 49.93 207.72 100 75.16 312.69
Cost Of Materials Consumed 0 0 0 100
Operating And Direct Expenses 30.51 17.47 162.19 100 57.26 531.60
Changes In Inventories Of FG,WIP And
Stock-In Trade 0 0 0 100
Employee Benefit Expenses 6.61 6.61 7.07 100 100.00 106.96
Finance Costs 10.24 6.63 2.19 100 64.75 21.39
Depreciation And Amortisation Expenses 1.47 1.39 1.3 100 94.56 88.44
Other Expenses 13.3 13.83 27.67 100 103.98 208.05
Total Expenses 62.13 45.93 200.43 100 73.93 322.60

Profit/Loss Before Exceptional,

Extraordinary Items And Tax 4.3 4 7.29 100 93.02 169.53
Profit/Loss Before Tax 4.3 4 7.29 100 93.02 169.53
Current Tax 0.88 0.87 1.5 100 98.86 170.45
Deferred Tax 0 0 2.91 100
Tax For Earlier Years 0.44 0 0.03 100 0.00 6.82
Total Tax Expenses 1.32 0.87 4.44 100 65.91 336.36
Profit/Loss After Tax And Before
Extraordinary Items 2.98 3.13 2.85 100 105.03 95.64
Profit/Loss From Continuing Operations 2.98 3.13 2.85 100 105.03 95.64

30
Profit/Loss For The Period 2.98 3.13 2.85 100 105.03 95.64

Basic EPS (Rs.) 2.08 2.19 1.99 100 105.29 95.67

Diluted EPS (Rs.) 2.08 2.19 1.99 100 105.29 95.67
Equity Share Dividend 1.43 1.43 1.43 100 100.00 100.00
Tax On Dividend 0.29 0.29 0.29 100 100.00 100.00
Tren
Equity Dividend Rate (%) 10 10 10 100 100.00 100.00
d
analysis:-

1) A very huge improvement accrued in revenue from operation in the year of march-18 and march-19.

2) Revenue from operations increased from 100 percentage to 315.12 percentage in march-18 and also increased in
march-19 from 100 percentage to 1348.64 .

3) Operation and directing expenses are very fluctuated from year to year so company should have to control their
operating and directing expenses.

4) Finance cost of the company gradually decreased by year to year which is very benefited for the company.

5) Total tax expenses are increased in year 2019 by 236.36 percentage so company should have to do tax planning.

6) Earnings per share of the company remain almost same in all 3 year. Which is not attractive factor for investors?

31
Ratio Analysis:

1) Current Ratio=Current Assets/Current Liabilities

Current Assets = 73073.36

Current Liabilities = 11894.7

Current Ratio = 73073.36/11894.73

= 6.14:1

Higher ratio means better capacity to meet its current obligation. the ideal current ratio is 2:1.in case 6.14:1 is very
high it shows the idleness of funds.

2) Liquid Ratio = Liquid Assets/Liquid Liabilities

Liquid Assets = Current Assets-Inventories

=73073.36-19583.91

=53489.45

Liquid Liabilities = 11894.73

Liquid Ratio = 53489.45/11894.73

= 4.50:1

As the ratio company shows better short-term financial position.

3) Debt to Equity Ratio = Debt /Equity

Debt= Long-term Borrowings+ Long-term Provisions

=10.56

Equity = 76142.93

Debt Equity Ratio = 10.56/76142.93

= 0.00014: 1

4) Net Profit Ratio = Net Profit*100/Sales

32
Net Profit = -9775.43(Loss)

Sales = 42638.17

Net Profit Ratio = -9775.43*100/42638.17

= -22.93%

5) Total Assets to Debt Ratio=Total assets/Debt

Total Assets = 88048.22

Debt = Long-term borrowings + Long-term provisions

= 10.56

Total assets to debt Ratio = 88048.22/10.56

= 8337.90

6) Return on capital Employed=Net Profit*100/Capital Employed

Net Profit = 9775.43(Loss)

Capital Employed = Total Assets-Current Liabilities

=88048.22 – 11894.73

=76153.49

Return on capital employed = -9775.43*100/76153.49

= -12.84%

7) Proprietary Ratio = Shareholder’s Fund/Total Assets

Fund = 76142.93

Total Assets = 88048.22

Proprietary Ratio = 76142.93/88048.22

= 0.86: 1

8) Working Capital Turnover Ratio = Revenue from operations/Working Capital

Revenue from operations = 42770.87

33
Working Capital = Current Assets – Current Liabilities

= 73073.36 – 11894.73

= 61178.63

Working Capital Turnover Ratio= 42770.87/61178.63

= 0.70:1

9) Return on Investment = Profit before interest & tax*100/Capital employed

Profit before interest & tax = -9142.85(Loss)

Capital Employed = Share capital + reserve & surplus + long-term borrowings + long-term provisions

= 76142.93 + 10.56

= 76153.49

Return on Investment = -9142.85*100/76153.49

= -12.01%

10) Gross Profit Ratio = Gross profit*100/Sales

Gross Profit = 42770.87

Sales = 42638.17

Gross Profit Ratio = 42770.87*100/42638.17 = 100.31%

34
35
36
 Common size balance sheet as at 31-03-2017 to31-03-2018

Percentage of Balance Sheet

Absolute Amounts Total
31/03/ 31/03/
2017 2018 31/03/
Particulars (Rs) (RS) 2017 31/03/ 2018
Assets
1. Non-current Assets
a. Property, Plant and Equipment 0.71 0.51 0.035 0.016
b. Investment in Subsidiaries and Joint
Venture 0.1 1050.1 0.005 34.28
c. Financial Assets
(i) Investments _ 1 0 0.032
(ii) Loans _ _ 0 0
(iii) Other Financial Assets _ _ 0 0
d. Deferred Tax Assets 187.02 143.29 9.42 4.67
e. Other Non Current Assests 187.83 1194.9 9.46 39.01

2. Current Assets
(a) Financial Assets
(i) Investments _ 19.05 0 0.62
(ii) Trade Receivables _ 6.98 0 2.27
(iii) Cash and Cash Equivalents 50.28 4.66 2.53 0.15
(iv) Bank Balance Other Than Cash and
Cash Equivalents above 191.53 235.18 9.65 7.67
(v) Loans _ 14.46 0 0.47
(vi) Other Financial Assets 3.94 3.27 0.19 0.1
(b) Other Current Assets 98.66 131.62 4.97 4.29
(c) Assets classified as held for
disposal/distribution 1452.16 1452.16 73.17 47.42
Total Assets 1984.4 3062.28 100 100

37
Equity and Liabilities
Equity
(a) Equity Share Capital 966.04 966.04 6.0218598 5.38842162
(b) Other Equity -17008.3 -18894.1 -106.0219 -105.38842
16042.22 17928.07 100 100

Liabilities
1. Noncurrent Liabilities
(a) Financial Liabilities
(i) Borrowings 17339.73 20234.72 87.38 66.07
(b) Provisions 1.66 0.07 0.083 0.002
17341.39 20234.79 -87.38 66.07

2. Current Liabilities
(a) Financial Liabilities
(i) Borrowings 350 110 -17.63 3.5
(ii) Trade Payables 52.52 186.7 -2.64 6.09
(iii) Other Financial Liabilities 142.11 326.62 -7.16 10.66
(b) Provisions 0.55 0.13 0.027 0.0042
(c) Other Current Liabilities 140.05 132.11 7.057 4.13
685.23 755.56 34.53 0.24
Total Equity and Liabilities 1984.4 3062.28 100 100

Common Size Analysis:

1. Investments in subsidiaries and joint ventures of non-current assets and other non-current assets have increased
drastically in comparison to the previous year change from 0.1cr to 1050.1cr and 187.83cr to 1194.9cr respectively.

2. Investments of current asset in financial asset have increased from negligible to 19.05cr. On the other hand cash
and cash equivalents have decreased widely from 50.28cr to 4.66cr. But overall current assets have increased from
previous year i.e. from 1984.4 to 3062.28.

3. Borrowings of non-current Liability has increased in comparison to previous year and provisions for the same
have decreased, so the total liability of non-current liabilities has increased from 17341.39cr to 20234.79cr.

38
4. Borrowings of current Liability has decreased in comparison to previous year, trade payables has increased also
other financial Liability have increased rapidly. Overall there’s increase in current liability from 1984.cr to
3062.2cr.

39
 Trend Analysis Reliance Entertainment as at 31-03-2017,31-03-2018,31-03-2019
Particulars 3/31/2017 3/31/2018 3/31/2019
Revenue
Revenue from Operations 289.83 31.49 22.54
Base 100 10.86499 7.77697271
Other Income 5873.03 161.46 876.36
Base 100 2.7491772 14.9217695
Total 6162.86 192.95 898.9
100 3.1308516 14.5857605

Expenses
Purchase of stock in Trade 199.62 2.74 _
100 1.372608 _
Employee Benefit Expenses 57.27 0.2 7.25
100 0.349223 12.659333
Depreciation 52.13 0.2 0.16
100 0.3836562 0.306925
Other Expenses 568.38 203.66 355.37
100 35.831662 62.5233119
Finance Costs 3113.34 1858.16 1923.61
100 59.683812 61.7860561
Total 3990.74 2078.49 2286.4
100 52.082822 57.2926324

Profit/ (loss) before tax for the year 2172.12 1885.54 1387.49
100 86.806438 63.8772259
Profit/ (loss) before tax from continuing
operations 2513.95 1885.54 1387.49
100 75.003083 55.1916307
Tax Expenses

Current Tax _ _ _
Deferred Tax _ _ _

40
 Profit/ (loss) from continuing operations after
tax 2513.95 1885.54 1387.49
100 75.003083 55.1916307
Profit/ (loss) from discontinuing operations 341.83 _ _
100 _ _
Profits/ (loss) for the year 2172.12 1885.54 1387.49
100 86.806438 63.8772259
Other Comprehensive Income
Items that will not be reclassified to profit or
loss
Re-measurement of defined benefit plans :
Gains/(Loss) 0.18 0.31 0.09
100 172.22222 50
Income tax relating to the above 0.18 0.31 0.09
100 172.22222 50

Total Comprehensive Income 2171.94 1885.85 1387.58

100 86.827905 63.8866635
Earnings per Equity Share (Face Value of rs.5/-
each)
Basic and Diluted 11.24 9.76 7.18
100 86.83274 63.8790036
Earnings per Equity Share from Cont
Basic and Diluted 13.01 9.76 7.18
100 75.019216 55.1883167

Trend Analysis:

1. Revenue from operations has been consistently decreased from year 2017-2018-2019. There's a huge decrease
which may affect company's profit.

2. Purchase of stock in Trades has drastically dropped and is negligible in the year 2019 as compared to year 2017.

41
3. Total Expenses are observed to be fluctuating, being highest in the year 2017 lowest in 2018 and moderate in
2019.

4. Profit of the company is observed to decrease, being highest in the year 2017 and lowest in 2019. Company must
improve the financial status and reduce unwanted expenses.

5. Total comprehensive Income follows the reduction path, it decreases year by year, being lowest in 2019

6. Earnings per equity share reduces year by year this causes reduction in total Equity of the company.

42
Ratios of Reliance Entertainment 2019:-

1. Current ratio: Current assets / Current Liability

Current assets= 884.01

Current liability= 1163.25

= 8840.1/1163.25

=0.759

2. Return on Capital = (Net profit/ Capital Employed) *100

Capital Employed = Total Assets- Current Liability

12481.61-3856.62 = 8624.99

Net profit =1900

= (-1900/8624.99) *100

= -22.02

3. Debt to equity ratio= (Total Liability / Proprietor’s fund) *100

Proprietors fund = Share Capital+ Reserve& surplus- misc. Expenses

Total Liabilities =3856.62

Proprietors fund =966.04

= 3856.62/966.04

=3.99

4. Proprietors ratio = Proprietors fund / Total real assets

Proprietors fund = 966.04

Total assets = 12481

=966.04/12481

= 0.077

5. Liquid ratio = Liquid assets/ Liquid Liability

43
Liquid assets = Current Assets – inventories

Liquid liability = only current liabilities

Liquid assets = 12481.61-10.78 = 12470.83

Liquid liability = 3856.62

= 12470.83/3856.62 = 3.23

6. Total assets to debt ratio = Total asset/ Debt

Debt= Long-term borrowings + Long-term provisions

=110+0.15

= 110.15

=12481.61/110.15

= 113.31

7. Net profit ratio= Net profit after tax *100/ Revenue from operations

Net profit after tax = -1900

Revenue from operations = 678.80

=-1900*100/ 678.80

= -279.90

44
MUKTA ARTS

COMPARATIVE STATEMENT OF PROFIT AND LOSS

Particulars 2016-17 2017-18 DIFFERENCE %CHANGE

1 2 3 4

(1)Revenue from 58,85,08,072 11,50,03,077 -473504995.00 -80.45%

operations
(2)Other income 92514426 14,47,51,035 5,22,36,609 56.46%

(3) Total Income (1+2) 681022498 259754113 -4212683.85 -0.61%

Expenses:

(a)Changes in inventory of 4074521 0 4074521.00 100.00%

food & beverages

(b)Purchase of food & 28124231 0 28124231 100.00%

beverages

(c ) Cost of production 141253071 286605 -140966466 -99.79%

distribution,exhibition

(e ) Employee benefits 11963199 49620357 37657158 314.77%

expenses
(f)Finance costs 63524673 68496960 4972287 7.82%
(g) Depreciation and 64671948 27146711 -37525237 -58.02%
amortisation expenses
(h)Other expenses 260202809 96683456 -163519353 -62.84%
Total Expenses 673814452 242234089 -4315803.63 -0.64%

(5)Profit/loss before 7208046 17520024 10311978 143.06%

45
 share in joint venture
and tax

Tax expense
Current tax 9432073 7251643 -2180430 -23.11%
Deferred tax 6535659 4660752 -1874907.00 -28.68%
(6)Profit/Loss for the 184976 14929133 14744157 7970.84%
year after tax

INTERPRETATION OF COMPARATIVE ANALYSIS:

1. Revenue from operations has decreased by -80.45% which is Rs.4,75,04,995.00

2. Other income has gradually increased to good percentage i.e. 56.46% which is Rs 5, 22, 36,609.
3. Although there is subsequent increase in other income, but total income has almost decreased to -
0.61% i.e. Rs. 42,12,683.85
4. There is no change in inventory & purchase of food and beverages, i.e. it is100%.
5. Cost of production ,distribution, exhibition has decline to great extent i.e. from Rs 141253071 to
Rs.286605 which is almost -99.79%
6. It is good to see that company is carrying good amount of expenses for their employee. Employee
benefit expenses is 314.77%.
7. Finance cost has increase 7.82% i.e. Rs.4972287 which suggest that company is involved inn
purchase of assets or interest payments etc.
8. Depreciation expenses have almost reduced to 58.02% which is a sign that company is earning
good amount of income in subsequent year.
9. Other expenses is increase to 62.84% shows that company is carrying out many expenses other than
listed expenses, which should be reduced as much as it can be done.
10. Total expenses has been decreased to 0.64%
11. Profit before tax has increased to 143.06% by Rs.1, 03, 11,978 looks at a company’s profits before
the company has to pay income tax.
12. Current tax has decreased to 23.11% suggest that company has paid the taxes.
13. Deferred tax has been decreased to 28.68% by Rs.18,74,907.00

46
 14. Profit after tax has been increased to 7970.84% which shows A high after-tax profit margin
generally indicates that a company runs efficiently, providing more value, in the form of profits, to
shareholders.

COMMON SIZE STATEMENT OF MUKTA ARSTS

PARTICULARS 31-03- 31-03-2018 31-03-2017 31-03-2018

2017(Rs.) (Rs.) (%) (%)
EQUITY AND
LIABILITIES
Equity
(a)Equity Share Capital 112,9260,00 11,29,26,000 5.54% 5.47%
(b)Others Equity 1,25,02,80,206 1265205200 61.38 61.28%
Total Equity 1378131200 1363206206 67.66% 66.03%
Liabilities
Non-Current Liabilities
(a)Financial liabilities:
Borrowings 391274195 442099081 19.21% 21.41%
Other financial liabilities 30836921 29503227 1.51% 1.42%
(b)Long term provisions 11236515 8926111 0.55% 0.43%
( c ) Other non current 12673613 11259021 0.62% 0.54%
liabilities
Total Non-Current Liabilties 446021244 491787440 21.89% 23.82%

Current Liabilties
(a)Financial liabities
Borrowings 89125764 82000000 4.37% 3.97%
Trade Payables 13664622 15969790 0.67% 0.77%
Other financial liabilities 71651509 59146970 3.51% 2.86%
(b)Short term provisions 18932039 25359309 0.92% 1.22%
(c )Other current liabilities 34072619 11921704 1.67% 0.57%
47
Total current liabilities 227446553 194397773 11.16% 9.41%
Total equity and liabilities 2036674003 2064316413 100% 100%

ASSETS
Non Current Assets:
(a)Property ,Plants and 192449892 174973972 9.44% 8.47%
Equipments
(b)Capital work-in-progress 1287210 1287210 0.63% 0.62%
(c ) Investment property 159418326 154802866 7.82% 7.49%
(d)Intangible assets 43668993 39201952 2.14% 1.89%
( e)Intangible assets under 37654151 41395242 1.84% 2.01%
development
(f)Financial assets
Investment 270808355 257153087 13.29% 12.45%
Loans 411553060 387906193 20.20% 18.79%
Other financial assets 496494458 351242722 24.37% 17.01%
(g) Deferred tax assets (net) 22854008 27514760 1.12% 1.33%
(h)Other noncurrent assets 94078958 78171363 4.61% 3.78%
Total non current assets 1730267411 1513649367 84.95% 73.32%
Current Assets:
(a)Inventories
(b)Financial assets
Trade receivables 57071050 49519117 2.80% 2.39%
Cash and cash equivalents 2756458 6804224 0.13% 0.32%
Bank balances 20335237 20574382 0.99% 0.99%
Loans 118038433 343250656 5.79% 16.62%
Other financial assets 70069535 76234129 3.44% 3.69%
( c ) Other current assets 38135879 54284539 1.87% 2.62%
Total current assets 306406592 550667046 15.04% 2.66%
Total Assets 2036674003 2064316413 100% 100%

48
Common size interpretation of Mukta arts:

1. Total equity decrease by 1.63% i.e. from 67.66% to 66.03%, it can be assume that owner might have
withdrawn money for personal use.
2. Borrowings have increased to 21.41% in 2018 from 19.21% in 2017 which is minimal.
3. There is reduction in financial liabilities i.e. 2.86% in 2018 which was 3.51% in 2017.
4. Other current liabilities have decreased to 0.57% in 2018 which was 1.67% in 2017.
5. There is a decrease in total current liabilities i.e. 11.16% in 2017 and 9.41% in 2018 which represents a
cash outflow is more in the current year of Mukta arts
6. There is reduction in (a) Property, Plants and Equipment’s i.e. 9.44% in 2017 which reduced to 8.47% in
2018.
7. There is a subsequent reduction in total non-current assets i.e. 84.95% in 2017 which reduced to 73.32.
8. The percentage of loan has increased which shows that a company is in good position to get loans for the
company i.e. it was 5.79% in 2017 which increased to 16.62% in 2018.
9. Cash balance in a company rises and falls based on inflows and outflows of operational cash and financing
activities which can be seen in Total Current assets i.e. it was 15.04% in 2017 to 2.66% in 2018.
10. In current assets, other financial assets are increased to 0.75% i.e. from 1.87% in 2017 to 2.62% in 2018.
11. In current assets, trade receivables tends to decrease i.e., 2.39% in 2018 which was 2.80%, which is
indicates you are collecting your owed revenue faster than new accounts are being added. It could mean the
company is focused on managing their customer accounts better.
12. A total current asset has been decreased to 2.66% in 2018 which was 15.04% in 2017.

49
 TREND ANANLYSIS

Particulars 2016-17 2017-18 2018-19

(1)Revenue from operation 588508072.00 11,50,03,077 1,61,88,61,108
Base 100% 19.54% 1407.66%
(2)Other income 92514426 14,47,51,035 11,27,00,163
Base 100% 156.46% 121.81%
(3) Total Income (1+2) 681022498 259754113 1736235119
Base 100% 38.14% 254.93%
Expenses:
(a)Changes in inventory of food 4074521 0 1198313
& beverages
Base 100% 0 119831300.00%
(b)Purchase of food & 28124231 0 60396033
beverages
Base 100% 0 603960.33
(c ) Cost of production, 141253071 286605 347715528
distribution, exhibition
Base 100% 0.20% 242.64%
(e ) Employee benefits 11963199 49620357 275594097
expenses
Base 100% 414.77% 2303.65%
(f)Finance costs 63524673 68496960 101834419
Base 100% 107.82% 160.29%
(g) Depreciation and 64671948 27146711 121952492
amortization expenses
Base 100% 41.97% 188.54%
(h)Other expenses 260202809 96683456 766952296
Base 100% 37.15% 294.69%
Total Expenses 673814452 242234089 1693151830
Base 100% 35.94% 251.21%
(5)Profit/loss before share in 7208046 17520024 43083289
joint venture and tax

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Base 100% 243.06% 597.70%
Tax expense:
Current tax 9432073 7251643 41957510
Base 100% 76.88% 444.82%
Deferred tax 6535659 4660752 10100000
Base 100% 71.31% 154.53%
(6)Profit/Loss for the year 184976 14929133 5755224
after tax
Base 100% 8070.84% 3111.33%

Comments:

1. Revenue from operations has been increased to 19.54% in 2018 and 1407.66% in 2019.
2. Other income has been decreased to 121.81% in 2019 which was 156.46% in 2018
3. Total income has increased to great extent i.e. from 38.14% in 2018 to 254.93% in 2019, which shows the
company is earning good income.
4. Changes & Purchase in inventory of food and beverages has increased to great in 2019, i.e.
119831300.00% and 603960.33%.
5. Cost of production, exhibition and distribution has also increased to 0.20% in 2018 and 242.64% in 2019.
6. Employee benefits have also increase to 414.77% in 2018 and 2303.65% in 2019.
7. Finance cost has also increased i.e. 107.82% in 2018 to 160.29% in 2019 which shows that company might
be involved in purchase of assets or interest payments etc.
8. Depreciation has increased to 41.97% in 2018 to 188.54% in 2019,each time a company charges
depreciation as an expense on its income statement, it increases accumulated depreciation by the same
amount for that period. As a result, a company's accumulated depreciation increases over time, as
depreciation continues to be charged against the company's assets.
9. Other expenses have also increased to 37.15% in 2018 to 294.69% in 2019.
10. As there is an increase in majority %, it is obvious that total expenses will also increase, i.e. 35.94% in
2018 to 251.21% in 2019.
11. Profit before tax has increased to 243.06% in 2018 to 597.70% in 2019.
12. Current tax has also increased to 365.94% i.e. it was 76.88% in 2018 which increased to 444.82% in 2019.
13. Deferred tax has also increased simultaneously i.e. it was 71.31% in 2018 which increased to 154.53% in
2019.
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14. Profit after tax has increased to great extent i.e. 23042.49% which is 8070.84% in 2018 and 31113.33% in
2019.

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Ratio Analysis of Mukta arts for the current year (2019):-

(1)Current Ratio = Current Assets

Current Liabilities
= Rs.598, 984,317÷Rs.973, 542,341
= 0.61 ~6:1
On the basis of information available, we can say the company has very good short term liquidity and idle cash as
the ratio is 6:1 and it also suggest having under-trading.

(2)Interest Coverage Ratio = PBIT ÷ INTEREST

=Rs.43, 083,289
Rs.1, 430,658
= 30 TIMES

On the basis of information available we can say that, company can pay its interest obligation 30 times out of its
revenue. Higher the ratio, greater the ability of company to pay the interest.

(3) Return on equity = Net Profit after tax

Equity share + Reserve × 100

Rs.5, 755,224
=
Rs.120, 000,000 + Rs.83, 144,791 ×100
=2.83%
A low ratio means low dividend, low internal approvals. Supplies willing to retain at unfavorable terms weakening
the position of the company and also low increase in net worth.

(4) Net profit ratio = (Net profit/Sales) ×100

= (Rs.5755224/Rs.2536368) ×100
=226.9%
As the Net profit ratio is 226.9% it shows that the company has good control over all expenses, strong capacity to
face bad economic situations, High increase in net worth and also large amount of appropriations are available.

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(5)Total Assets to Debt = Total Liabilities

Total Assets

= Rs.973542341
Rs.2095521380
=0.46%
The total assets to debt ratio is ≥1 i.e. 0.46% it means the company owns more assets than liabilities and can meet
its obligations by selling its assets if needed. The lower the debt to asset ratio, the less risky the company.

(6)Gross profit ratio = (Gross Profit / Sales) ×100

=Rs.38, 805,526 / Rs, 2,536,368) ×100
=1529.96%
On the basis of ratio i.e. 1529.96% which is a higher standard it shows that the company is highly efficient in
managing purchases, production, and inventory.

(7)Debt Equity ratio: = Borrowed fund/Debt

Proprietor’s fund /Equity

= Rs. 15720155

Rs.120, 000,000 + Rs.83, 144,791

= 1:7 where, 1 is debt and 7 is money
A debt equity ratio of the company 1:7 is considered good. Lower the debt, less the risk of default. This ratio helps
in assessing whether a company is relying on debt or capital for financing its project or assets.

(8)Sales /Total Assets = Sales /Total Assets

=Rs.2, 536,368 ÷ Rs.2095521380
=0.12%
The ratio comes to 0.12% of the company which shows that if a company has a low asset turnover ratio, it indicates
it is not efficiently using its assets to generate sales.

(9)Return on assets ratio = (Net Profit / Total Assets) ×100

= (Rs.57, 55,224 /Rs.2, 095,521,380) × 100
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=0.27 %
This ratio measures how profitable a company's assets are, the ratio is .27% which shows the company is now
using the assets efficiently.

(10)Earnings per share: (Net profit after tax / No of shares)

= (Rs.5, 755,224 / 24,000,000)
=.23
Higher earnings per share are always better than a lower ratio because this means the company is more profitable
and the company has more profits to distribute to its shareholders.

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Cash flow of mukta arts:-

As per cash flow statement,

The profit before tax is increased more than two times compare to last year. Which is good for company.

 Financial cost is decreased. It means company is declining it’s borrowings or shares. So that it means
decline in interest or dividend paid.
 As fixed assets are declining which means reduction in cost of depreciation.
 Trade payable increases which means increase in cash inflow.
 Increase in trade receivables it means company paid more RS during the year.
 Also increase in current asset it means outflow of cash increases.
 Company creates more provisions against some securities.
 The operating profit is increased. Operating activity can give good reward but net cash flow from operating
activity is at minus stage. So it is too much good for company.
 Investing activity is also declining and it’s going negative but there is more cash inflow compare to
outflow.
 Investment in subsidiary company is increased it gives good returns to us in future. It is more than doubled.
 The cash flow from financing activity declining and it’s going negative. There are more outflows.
 Cash and cash equivalent from activities declining because negative impact of two activities.

At the end of year cash and cash equivalent going high but not much.

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