INSTITUTE OF MANAGEMENT TECHNOLOGY GHAZIABAD

Post-Graduate Diploma in Management – BFS

(Batch 2021 – 23)
End Term Exam: II (Take Home Exam)
Subject: Financial Statement Analysis (FSA)
Faculty Name: Prof Sachin Choudhry
Exam Date: 27.12.2021 Time: 2:00 hours Maximum Marks : 40
Mode: Online, Open Book

Note: Submit only one Word File. Do not paste any link of any file as there is problem
opening it.

Qs (40 marks)

It is important that you carefully read and follow the instructions given below.

Given below are 5-years ratios of UltraTech Cement Ltd (UCL) and Shree Cements
Ltd (SCL). As a financial analyst, compare and contrast the two companies based on
these numbers. Do not try to verify or challenge the ratios given. In case required, you
may refer to the annual reports of these companies and all the financial statements
contained therein. But do ensure that you do not write what is already explicitly stated
herein below nor copy paste any text from the annual reports or from any other internet
source. Do not produce any calculations on the answer sheets as this will add to the
Similarity Index. Avoid writing the numbers in your answer sheets (for e.g. do not
write that the ROE of UCL is 12.36% or its current ratio is 1.17). Doing so will again
add to the Similarity Index which shall go against your interest and may lead to your
answer sheet getting disqualified for evaluation. You may critically assess and state
your own judgement / comments (in your own words). (Word limit: 500)

(Page 1 of 2)
 Ultra Tech

  Mar-21 Mar-20 Mar-19 Mar-18 Mar-17

           

Return on Equity (%) 12.36 14.74 8.47 8.42 11.13

Debt to Equity (x) 0.40 0.55 0.86 0.71 0.31

Return On Assets (%) 6.33 7.26 3.14 3.88 6.43

Asset Turnover Ratio (%) 51.89 53.55 54.36 54.20 60.10

Inventory Turnover Ratio (X) 11.13 10.14 10.15 9.48 10.57

Current Ratio (X) 1.17 0.89 0.83 1.00 1.60

Gross Profit Margin (%) 27.50 23.32 18.77 21.73 23.09

Operating Profit Margin (%) 21.46 16.91 12.88 15.77 17.78

P/E (x) 35.58 16.26 47.59 48.80 40.28

EPS (Rs.) 189.40 199.55 84.02 80.94 98.92

Dividend/Share (Rs.) 37.00 13.00 11.50 10.50 10.00
Face Value of a Share (Rs.) 10 10 10 10 10

Shree Cements

  Mar-21 Mar-20 Mar-19 Mar-18 Mar-17

Return on Equity (%) 14.84 11.66 10.40 15.55 17.39

Debt to Equity (x) 0.12 0.18 0.29 0.38 0.17

Return On Assets (%) 10.62 7.70 6.49 9.14 11.99

Asset Turnover Ratio (%) 62.64 64.52 81.03 64.94 76.96

Inventory Turnover Ratio (X) 7.85 7.51 6.71 6.27 6.54

Current Ratio (X) 2.21 1.97 2.22 1.92 1.65

Gross Profit Margin (%) 33.52 31.34 24.24 29.10 33.45

Operating Profit Margin (%) 24.15 17.29 12.51 19.95 19.31

P/E (x) 46.51 40.30 64.62 40.76 44.44

EPS (Rs.) 633.54 435.35 288.88 397.32 384.38

Dividend/Share (Rs.) 60.00 110.00 60.00 50.00 140.00
Face Value of a Share (Rs.) 10 10 10 10 10