Annexure-V – Cover Page for Academic Tasks

Course Code: FINM542 Course Tittle: CORPORATE FINANCE-1

Course Instructor: VISHAL GOYAL

Academic Task No: 2 Academic Task Title: Assignment

Date of Allotment: 27th September 2021 Date of Submission: 22th October 2021

Student Roll No: RQ2144A04 Student Registration No: 12108434

Evaluation Parameters:

Learning Outcomes:

Declaration:
I declare that the Assignment is my individual work. I have not copied it from
any other student’s work or from any other source except where due
acknowledgement is made explicitly in the text, nor has any part been written for
me by any other person.
Student’s Signature:
Evaluator’s comments (For Instructor’s use only)

General Observation Suggestion for Improvement Best part of assignment

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Marks Obtained: Max Marks:
LOVELY PROFESSIONAL UNIVERSITY
PHAGWARA, PUNJAB
MITTAL SCHOOL OF BUSINESS

Under The Guidance Of

Dr. Vishal Goyal
(Lecturer Of Mittal School of Business)
LOVELY PROFESSIONAL UNIVERSITY
 INTRODUCTION
COMPANY DETAILS
Ambika Cotton Mills Limited (ACML) based out of Coimbatore in Southern India, is occupied with the
assembling of premium quality Compact and Elitwist cotton yarn for hosiery and weaving. We are a set up
player in the global and homegrown yarn market with trades establishing around a little over half of its
incomes.
The organization was consolidated in 1988 and its 4 assembling units are arranged in Dindigul, Tamil Nadu
with an all-out axle limit of 1,08,288 of Compacting System.
Ambika Cotton Mills has the exceptional differentiation of being the main in the shirting portion and is the
favored customer of all top quality shirt makers all throughout the planet. We hold a very specialty fragment
in the business, because of our flawless history of item quality and conveyance satisfaction. We likewise invest
heavily in our zero grumblings with customers, transporters and unrefined substance providers.
We likewise approach our practicing environmental awareness responsibility extremely in a serious way and
produce more than every available ounce of effort of its force prerequisite by clean wind power with
introduced limit of 27.4 MW. We have 100% administrative and lawful consistence record.

Products
We fabricate 100% cotton conservative yarn counts differing from 20s to 120s searched which goes for the
production of premium marked shirts and shirts all around the world.
Our items are produced using different imported and
Indian cotton. We invest heavily in our defilement
free cotton yarn that gives us a unique specialty on
the lookout.
Ambika's yarn has been broadly acknowledged and
appreciated in the business by unmistakable top shirt
producers and weaved piece of clothing makers,
locally and around the world. It is all around
rumored for its defilement free 100% cotton ring
turned and conservative yarn made only for shirting.
Hard bend and soft curve with 4'20 min and round
and hollow color cones for weaving, and S and Z
wind yarn from counts 24's to 140's for sewing are additionally our normal outstanding components.
Ambika holds the Supima testament from Supima Association (USA), GOTS Certificate from Control Union
(earlier SCAL) for natural yarn, and Oeko-Tex Certificate of Standard 100 Product Class I.
We are additionally essential for the better cotton drive Better Cotton Initiative (BCI) managing the worldwide
guidelines for Better Cotton, and uniting cotton's intricate inventory network, from the ranchers to the retailer,
for Supima, Australian, and Indian cotton, all things considered.
We guarantee that we keep up with above and beyond amounts of cotton unrefined components in the extra-
long staple just as medium and short reach consistently.
Our assembling interaction is entirely checked by our quality control framework which is unrivaled in the
business.
Long term sources of finance
We create 100% cotton moderate yarn counts contrasting from 20s to 120s looked through which goes for the
creation of premium checked shirts and shirts from one side of the planet to the other.
Our things are created utilizing diverse imported and Indian cotton. We put vigorously in our pollution free
cotton yarn that gives us a novel claim to fame keeping watch.
Ambika's yarn has been extensively recognized and appreciated in the business by obvious top shirt makers
and weaved garment producers, locally and all throughout the planet. It is all over reputed for its debasement
free 100% cotton ring turned and moderate yarn made distinctly for shirting. Hard twist and Soft bend with
4'20 min and round and empty shading cones for weaving, and S and Z wind yarn from counts 24's to 140's
for sewing are also our typical exceptional parts.
Ambika holds the Supima confirmation from Supima Association (USA), GOTS Certificate from Control
Union (prior SCAL) for regular yarn, and Oeko-Tex Certificate of Standard 100 Product Class I.
We are moreover fundamental for the better cotton drive Better Cotton Initiative (BCI) dealing with the overall
rules for Better Cotton, and joining cotton's perplexing stock organization, from the farmers to the retailer, for
Supima, Australian, and Indian cotton, in light of everything.
We ensure that we stay aware of far in excess of measures of cotton crude parts in the extra-long staple
similarly as medium and short reach reliably.
Our collecting cooperation is totally checked by our quality control system which is unmatched in the business.
Some of the long-term sources of finance are:
1. Equity Shares
2. Preference Shares
3. Ploughing Back of Profits
4. Debentures
5. Financial Institutions
6. Lease Financing
7. Term Loans
8. Debt Capital
9. Internal Sources
10. Foreign Capital.

(1) Equity-Shares:
Value Shares, otherwise called standard offers, address the possession capital in an organization. The
holders of these offers are the lawful proprietors of the organization. They have unlimited case on pay and
resources of the organization and have all the democratic force in the organization.
Truth be told, the premier target of an organization is to augment the worth of its value shares. Being the
proprietors of the organization, they bear the danger of possession moreover. They are qualified for profits
subsequent to delivering the inclination profits. The pace of profit on these offers isn't fixed and relies on the
accessibility of distinct benefits and the aim of the chiefs.
They might be delivered a higher pace of profit in the midst of flourishing and furthermore risk no profits in
the time of difficulty. Additionally, when the organization is wrapped up, they can practice their case on
those resources which are left after the installment of any remaining cases including that of inclination
investors.

(2) Preference Shares:

Inclination share capital is one more wellspring of long haul financing for an organization. As the name
recommends, these offers convey particular freedoms over value shares both in regards to the installment of
profit and the arrival of capital. These offers convey a decent pace of profit and such profit should be settled
completely before the installment of any profit on value shares. Likewise, at the hour of liquidation, the entire
of inclination capital should be paid before any installment is made to value investors.

(3) Ploughing Back of Profits:

A new company can raise finance only from external sources such as shares, debentures, loans etc. But an
existing company can also generate finance through its internal sources, i.e., retained earnings or ploughing
back of profits. When a company does not distribute whole of its profits as dividend but reinvests a part of it
in the business, it is known as ploughing back of profits or retention of earnings. This method of financing is
also known as self-financing or internal financing.
Ploughing back of profits is made by transferring a part of after tax profits to various reserves such as General
Reserve, Reserve Fund, Replacement Fund, Dividend Equalization Fund etc. Such retained earnings may be
utilized to fulfil the long-term, medium-term and short-term financial requirements of the firm.

(4) Debentures:
Debentures are one of the oftentimes utilized strategies by which an organization raises long haul reserves.
Assets gained by issue of debentures address credits taken by the organization and are otherwise called
'obligation capital'. A debenture is a testament given by an organization under its seal recognizing an obligation
due by it to its holders. In USA there is a differentiation among debentures and bonds. There, the term bond
alludes to an instrument which is gotten on the resources of the organization while the debentures allude to
unstable instruments.
Be that as it may, in India no such qualification is made among bonds and debentures and the two terms are
utilized as interchangeable. As indicated by Section 2 (30) of the Companies Act, 2013, "the term debenture
incorporates debenture stock, securities and some other protections of an organization whether establishing a
charge on the resources of the organization or not."

(5) Loans from Financial Institutions:

Monetary Institutions are one more significant wellspring of long haul finance. In India, various exceptional
monetary organizations have been set up by the Government at the public level and state level to give
medium-term and long haul credits to the modern endeavors.
Monetary organizations set up at the public level incorporate Industrial Development Bank of India (IDBI),
Industrial Finance Corporation of India (IFCI), Industrial Credit and Investment Corporation of India
(ICICI), Industrial Reconstruction Corporation of India (IRCI), Unit Trust of India (UTI), Life Insurance
Corporation of India (LIC), General Insurance Corporation (GIC) and so forth
Monetary organizations set up at the state level incorporate State Financial Corporations (SFCs) and State
Industrial Development Corporations (SIDCs). For instance, In Haryana, Haryana State Financial
Corporation (HFC) and Haryana State Industrial Development Corporation (HSIDC) have been set up.

(6) Lease Financing:

Rent is an agreement between the proprietor of a resource and the client of such resource. Proprietor of the
resource is called 'Lessor' and the client is called 'Tenant'. Under the rent contract, the proprietor of the
resource gives up the option to utilize the resource for one more party for a concurred timeframe for a
concurred thought called the rent rental. The tenant pays a decent rental to the lessor toward the start or
toward the finish of a month, quarter, half year, or year. Toward the finish of the time of rent contract, the
resource returns to the lessor, who is the legitimate proprietor of the resource.
As the legitimate proprietor, it is the lessor (and not the tenant), who will be qualified for guarantee
devaluation on the rented resource. Toward the finish of rent period, the tenant is generally given a choice to
purchase or further recharge the rent contract for an unequivocal period.
Renting is, hence, a gadget of long haul wellspring of money. Renter gets the option to utilize the resource
without getting them. His position is much the same as that of a the individual resource with acquired cash.
The genuine situation of lessor isn't leasing of resource however loaning of money and consequently rent
financing is, basically, an agreement of loaning cash. The resident is allowed to pick the resource as
indicated by his necessities and the lessor is really the agent.

(7) Term Loans:

Term credits are the kinds of long haul advances that are raised for the length of 3 to a long time from
monetary establishments. These credits convey at a skimming pace of interest and foreordained development
period. The primary wellsprings of term advances are business banks, Industrial improvement Bank of India
(IDBI), Industrial Credit and Investment Corporation of India (ICICI), and Industrial Finance Corporation of
India (IFCI). An association utilizes term advances to buy fixed resources and asset projects having long-
development period.

(8) Debt Capital:

Obligation capital incorporates debentures and term advances. They are a typical wellspring of long haul
finance. Debentures regularly convey a proper loan cost and a specific date of development. Interest is paid
each year and chief is paid on the date of development. Term credits convey a proper loan fee and the
installment is made in portions which comprise of both head and interest.

(9) Internal Sources of Financing:

Inner money is otherwise called self-financing by an organization. Inner money incorporates the assets
created inside the corporate unit independent of the idea of source. These sources are especially significant
for private ventures which might think that it is hard to get outside finance.
All in all, the degree of productivity after charge, the size of profit installments and the measure of
deterioration gave for along the stores and excess all add to the wellsprings of inner assets. These assets
might be utilized to fund the expense of securing of fixed resources that are required for development,
modernization and broadening projects of the organization.

(10) Foreign Capital:

In most emerging nations like India, homegrown capital is deficient with the end goal of financial
development. Unfamiliar capital is regularly seen as a method of filling in holes between the designated
speculation and privately activated investment funds. As the unfamiliar capital assumes a valuable part in a
country's financial turn of events, it has prompted an ever-evolving decrease in guidelines and restrictions that
had before repressed the inflow of unfamiliar capital.
The public authority of India rolled out a few improvements in the monetary strategy of the country in the
mid-1990s. This prompted the liberation and advancement of the Indian economy and furthermore expanded
the progression of unfamiliar capital into the country. The unfamiliar capital might be given by unfamiliar
government, organizations, banks, business companies or individual financial backers.
There are different types of unfamiliar capital streaming into India that have given a significant lift to the
Indian economy. These are unfamiliar direct speculation, unfamiliar portfolio venture and unfamiliar business
borrowings.
Short Term Sources of Finance
Short-Term Sources of Finance for a Company, Firm and Business

All that you wanted to think about the transient wellsprings of money. Transient financing is intended to
satisfy the need of current resources and pay the current liabilities of the association.

At the end of the day, it helps in limiting the hole between current resources and current liabilities. There are
various means to raise capital from the market for little length. Different offices, like business banks, co-usable
banks, monetary establishments, and NABARD give the monetary help to associations.

Some of the short-term sources of finance are:

1. Trade Credit

2. Accruals

3. Deferred Income

4. Commercial Paper (CPs)

5. Public Deposits

6. Inter-Corporate Deposits (ICDs)

7. Commercial Banks

8. Factoring

9. Installment Credit.

1. Trade Credit:
Exchange credit alludes to the credit reached out by the provider of labor and products to his/her client in the
typical course of business. It possesses a vital situation in transient financing because of the opposition.
Practically every one of the dealers and makers are needed to broaden credit office (a part), without which
there is no business. Exchange credit is an unconstrained wellspring of money that emerges in the typical
deals without explicit arrangement, (programmed wellspring of money).
To get this wellspring of money, the purchaser ought to have satisfactory and trustworthy financial
soundness and notoriety on the lookout. Exchange credit is by and large stretched out as open record or bills
of trade.

2. Accruals:
Accumulated costs are those costs which the organization owes to the next, however not yet due and not yet
paid the sum. Accumulations address a risk that a firm needs to pay for the administrations or products, it has
gotten. It is unconstrained and sans interest wellspring of financing. Pay rates and wages, premium and
assessments are the significant constituents of accumulations. Pay rates and wages are generally paid on month
to month and week by week base, individually.
The measures of compensations and wages are owed however not yet paid and shown them as gathered pay
rates and wages on the accounting report toward the finish of the monetary year. The more extended the delay
in–installment of these costs, the more prominent is the measure of assets given by the representatives.
Essentially, premium and assessment are accumulations, as wellspring of transient money. Expense will be
paid on income.
Personal expense is paid to the public authority, on quarterly premise and some other duties might be payable
half-yearly or yearly. Measure of duties due as on the date of the monetary record however not paid till then
are displayed as accumulated expenses on the accounting report. Like assessments, interest is paid
occasionally in the year yet the assets are utilized constantly by a firm. Any remaining such things of costs
can be utilized as a wellspring of transient money yet displayed on the monetary record.
The measure of accumulation fluctuates with the degree of exercises of a firm. At the point when the degree
of movement extends, gatherings increment and consequently they act a wellspring of money. Gatherings are
treated as "cost free" source or money, since it doesn't include any installment of revenue.
In any case, in real terms it may not be valid, since installment of pay rates and wages is controlled by
arrangements of law and industry practice. Essentially, charge installment is represented by laws and deferral
in installment of duty prompts punishment. Consequently, a firm should take note of that utilization of
accumulations as a wellspring of working capital paying may not be conceivable

3. Deferred Income:
Conceded pay is pay gotten ahead of time by the firm for supply of labor and products in future period. This
pay builds the company's liquidity and establishes a significant wellspring of transient money. These
installments are not displayed as income till the inventory of labor and products, however displayed yet to be
determined sheet as pay got ahead of time.
Settlement ahead of time can be requested by firms which are having imposing business model force,
extraordinary interest for its items and administrations and if the firm is fabricating an uncommon item on an
exceptional request.

4.Commercial Papers (CPs):

Commercial paper addresses a momentary unstable promissory note gave by firms that have a genuinely
high credit (standing) rating. It was first presented in the USA and it is a significant currency market
instrument. In India, Reserve Bank of India presented CP on the suggestions of the Vaghul Working Group
on Money Market. CP is a wellspring of transient money to just huge firms with sound monetary position.

5. Public Deposits:
Public deposits or term stores are in the idea of unstable stores, are requested by the organizations (both
enormous and little) from overall population essentially to fund their functioning capital prerequisites.

6. Inter-Corporate Deposits (ICDs):

A deposit made by one firm with another firm is known as Inter-Corporate Deposit (ICD). Generally, these
deposits are made for a period up to six months.
Such deposits may be of three types:

(a) Call Deposits:

These deposits are those expected to be payable on call/on just one day notice. But, in actual practice, the
lender has to wait for at least 2 or 3 days to get back the amount. Inter-corporate deposits generally have 12
per cent interest per annum.
(b) Three Months Deposits:
These deposits are more popular among companies for investing the surplus funds. The borrower takes this
type of deposits for meeting short-term cash inadequacy. The interest rate on these types of deposits is around
14 per cent per annum.

(c) Six months Deposits:

Inter-corporate deposits are made for a maximum period of six months. These types of deposits are usually
given to ‘A’ category borrowers only and they carry an interest rate of around 16 per cent per annum.

7. Commercial Banks:
Commercial banks are the major source of working capital finance to industries and commerce. Granting loan
to business is one of their primary functions. Getting bank loan is not an easy task since the lending bank may
ask a number of questions about the prospective borrower’s financial position and its plans for the future.
At the same time the bank will want to monitor borrower’s business progress. But there is a good side to this,
that is borrower’s share price tends to rise, because investor knows that convincing banks is very difficult.

Forms of Bank Finance:

Banks provide different types of tailor- made loans that are suitable for specific needs of a firm.
The different types or forms of loans are:
(i) Loans,
(ii) Overdrafts,
(iii) Cash credits,
(iv) Purchase or discounting of bills and
(v) Letter of Credit.

8. Factoring:
Considering is one of the wellsprings of working capital. Banks have been given more opportunity of getting
and loaning both inside and remotely and worked with the free working in loaning and speculation activities.
From 1994, banks are permitted to enter straightforwardly renting, employ buying and figuring
administrations, rather through their auxiliaries. All in all, banks are allowed to enter or exit in any field
contingent upon their benefit, however dependent upon some RBI rules.
Banks give working capital money through financing receivables, which is known as "considering". A
"Factor" is a monetary establishment, which renders administrations identifying with the administration and
financing of various borrowers that emerges from credit deals.

9. Installment Credit:
Portion credit is one more wellspring of momentary financing, in which the acquired sum is paid in equivalent
portions with interest. It is likewise called as portion plan or recruit buy plan. Portion credit is conceded to the
association by the providers on the confirmation that the reimbursement would be done in fixed portion at
customary time frames. It is generally used to secure long haul resources utilized underway cycles.
Analysis of long term sources and short term sources of finance of Ambika Cotton Mill
Ltd:
Long Term Finance of Ambika Cotton Mill Ltd Through Balance Sheet
FIGURES IN RS CRORE 2021 2020 2019
SOURCES OF FUNDS
Share Capital 5.73 5.73 5.73
Reserves 559.48 500.34 468.9
Total Shareholders’ Funds 565.21 506.07 474.63
Secured Loans 0.10 54.43 83.67
Unsecured Loans 4.88 20.67 12.56
Total Debt 4.98 75.1 96.23
Total Liabilities 570.19 581.17 570.86
APPLICATION OF FUNDS
Gross Block 638.15 611.06 597.27
Capital Work in Progress 3.86 6.18 1.16
Investments 0.39 0.2 0.33
CURRENT ASSETS, LOANS &
ADVANCES
Inventories 313.2 302.74 271.89
Sundry Debtors 13.47 18.13 12.55
Cash And Bank 2.18 7.22 21.81
Loans And Advances 51.5 45.33 45.33
Total Current Assets 380.35 373.42 351.58
CURRENT LIABILITIES AND
PROVISIONS
Current Liabilities 55.2 45.02 42.2
Provisions 3.74 0 0.19
Net Current Assets 321.41 328.4 309.19
Miscellaneous Expenses Not Written 0 0 0
Off
Deferred Tax Assets N/A N/A N/A
Deferred Tax Liability N/A N/A N/A
Net Deferred Tax N/A N/A N/A
Other Assets 0 0 0
Total Assets 570.2 581.17 570.84

Debt Equity Ratios of 2020 to 2021

Ratio Formula Current Year Previous Comparison Direction
Year Change%
Debt Equity Debt 4.98 0.008 75.1 0.14 (94.28) Down
Equity 565.21 506.07

Debt = Total Debt

Equity = Total Shareholder’s Fund
Debt Equity Ratios of 2019 to 2020
Ratio Formula Current Previous Comparison Direction
Year Year Change
Debt Equity Debt 75.1 0.14 96.23 0.20 (30) Down
Equity 506.07 474.63

Debt = Total debt

Equity = Shareholder’s Fund

Annual Report of Ambika Cotton Mill Ltd

Annual Report of 2020-21 and 2019-20

Particulars Consolidated
Results
FY 2020-21 FY 2019-20
Revenue from operations 26,221.48 26,467.72
Other income 1,928.20 1,374.09
Total Revenue 28,149.68 27,841.81
Operating and administrative expenses 17,552.96 20,782.42
Operating profit before finance costs, depreciation and Tax 10,596.72 7,059.39
Depreciation and amortization expenses 3,201.65 3,006.50
Profit before finance costs, exceptional items, tax and deferred tax 7,395.07 4,052.89
(recoverable from) future tariff
Finance costs 516.33 531.82
Exceptional item - 1,002.99
Profit / (Loss) before tax and deferred tax (recoverable from) future 2,288.74 -2,264.92
tariff
Tax expenses 1,083.87 55.54
Deferred tax recoverable from future tariff (net of -65.11 -45.69
tax)
Profit / (Loss) for the year before share of Profit / (Loss) from 1,269.98 -2,274.77
associate
Net share of Profit / (Loss) from associate - -
Profit / (Loss) for the year 1,269.98 -2,274.77
Other Comprehensive Income -30.4 10.32
Total Comprehensive Income / (Loss) for the year 1,239.58 -2,264.45
Surplus brought forward from previous year - -
Balance available for appropriation 1,239.58 -2,264.45
Balance carried to Balance Sheet 1,239.58 -2,264.45
Annual Report of 2017-18 and 2017-16
CURRENT YEAR 2017-18 PREVIOUS YEAR 2016-17
Sales & Other Income 58569.81 52944.78
Profit Before Finance Cost and 11342.44 10525.3
Depreciation
Less: Finance Cost 492.86 383.95
Gross Profit for the Year 10849.58 10141.35
Less: Depreciation 2887.6 2934.86
Profit before Tax 7961.98 7206.49
Less: Tax Expense 1855.21 1632.66

Profit after Tax 6106.77 5573.83

Other Comprehensive income -7.22 -4.83
Total Comprehensive income for the year 6099.55 5569

Add: Opening Balance of retained 20841.22 16272.22

earnings
Amount available for appropriation 26940.77 21841.22
Less: Appropriations
Transfer to General Reserve 1000 1000

Interim Dividend on Equity Shares 572.5 0

Dividend Tax on Interim dividend 116.55 0
Closing Balance of retained earnings 25251.72 20841.22

Analysis:
• Consolidated Finance costs during FY 2020-21
were H 516.33 Crores, which have decreased by 2.91% from H 531.82 Crores in FY 2019-20, mainly
due to interest rate reduction and repayments. Through decrease in financial cost, we can understand
company due reduction on interest rate for loan finance cost also decrease.
• Consolidated Finance costs during FY 2017-18
were H 492.86 Crores, which have increased by 28.36% from H 383.95 Crores in FY 201920, mainly
due to Investment company took loan. Through increase in financial cost, we can understand
company took more loan which caused increase in finance cost.
• Through debt and equity ratio we can understand that company use more equity debt as compare to
short term debt and there is a down fall of debt and equity as compare to previous year so we call
understand that company use to take less loan as compare to previous which is a good sign for
company.
• As well as if we see the debt and equity ratio of 2019 to 2020, we can understand that company use
more equity for finance but less debt through ratio there is a downfall in ratio which is good sign of
financial condition of company.
• Through Balance sheet we can see that long term loan which is Shares capital is constant of the
company. (i.e., 5.73)

• An unsecured loan is supported only by the borrower’s creditworthiness, rather than by any
collateral, such as property or other assets. Through balance sheet we can understand that from 2020
to 2021 company unsecured loan has decreased 20.67 to 4.88 76.39% Unsecured loans are riskier
 than secured loans for lenders, so they require higher credit scores for approval. As we can see
through balance sheet, we can understand the company credit score decreased.

• A secured loan is a short term loan a bank or lender can request collateral for large loans for which
the money is being used to purchase a specific asset or in cases where your credit scores through
balance sheet we can see that company took secured loan as compare to previous year 2019 to
2021from 54.43 to 0.10 due to decrease in credit score company loan on secured loan decreased.

Competitor Analysis of Long term and Short Term Loan

Analysis of long term sources and short term sources of finance of Page Industries Ltd.

Balance Sheet of Page Industries Ltd

FIGURES IN RS CRORE 2021 2020 2019
SOURCES OF FUNDS
Share Capital 11.15 11.15 11.15
Reserves 873.73 808.73 763.84
Total Shareholders’ Funds 884.88 819.88 774.99
Secured Loans 0.04 38.05 84.78
Unsecured Loans 135.27 147.55 9.33
Total Debt 135.31 185.6 94.11
Total Liabilities 1020.19 1005.48 869.1
APPLICATION OF FUNDS
Gross Block 548.1 536.43 398.24
Capital Work in Progress 27.85 28.73 7.23
Investments 0 0 0
CURRENT ASSETS, LOANS & ADVANCES
Inventories 554.93 718.57 750.11
Sundry Debtors 137.12 73.78 123.84
Cash And Bank 435 116.92 44.05
Loans And Advances 170.6 181.77 137.33
Total Current Assets 1297.65 1091.04 1055.33
CURRENT LIABILITIES AND PROVISIONS
Current Liabilities 669.4 486.8 474.23
Provisions 22.2 33.01 19.85
Net Current Assets 606.05 571.23 561.25
Miscellaneous Expenses Not Written Off 0 0 0
Deferred Tax Assets N/A N/A N/A
Deferred Tax Liability N/A N/A N/A
Net Deferred Tax N/A N/A N/A
Other Assets 0 0 0
Total Assets 1020.19 1005.49 869.11
Debt Equity Ratios of 2020 to 2021
Ratio Formula Current Year Previous Comparison Direction
Year Change%
Debt Equity Debt 135.31 0.15 185.6 0.22 (31.81) Down
Equity 884.88 819.88

Debt = Total Debt

Equity = Total Shareholder’s Fund

Debt Equity Ratios of 2019 to 2020

Ratio Formula Current Previous Comparison Direction
Year Year Change
Debt Equity Debt 185.6 0.22 94.11 0.12 83.33 UP
Equity 819.88 774.99

Debt = Total debt

Equity = Shareholder’s Fund
Annual Report of Page Industries Ltd
Annual Report of 2017-18 and 2020-21

Particulars 2020-21 2019-20 2018-19 2017-18

Revenue from operations (net) 28330 29455 28522 25520
Profit before Interest, Depreciation & Tax 5460 5573 6534 5621

Less: Finance Cost 297 339 163 166

Profit before Depreciation and Tax 5163 5234 6371 5455
Less: Depreciation 629 614 311 280
Profit before Tax 4534 4620 6060 5175
Less: Tax 1128 1188 2121 1705
Profit for the year 3406 3432 3939 3470
Other comprehensive income, net of tax 33 -33 49 -30
Total Comprehensive income, net of tax 3439 3399 3988 3440
Retained earnings- Opening Balance 6935 6486 7210 5394
Profit for the year 3406 3432 3939 3470
Less:
Impact - Adoption of Ind AS 116 Deferred tax - 234 166 -
Interim Dividends Tax 2789 2716 4546 1624
Re-measurement (/-) on defined benefit plans -33 33 -49 30
Transfer to any reserve - - - -
Retained earnings- Closing Balance 7585 6935 6486 7210
Earnings per share (Basic / Diluted) (?) 305.35 307.72 353.19 311.08

Analysis:
• To fulfill the developing business sector need, the Company has equipped to increase its creation limit.
Your Company's introduced limit is spread over 2.40 million sq.ft. in 14 areas in Karnataka and one
in Tamil Nadu.The development of Women's unrefined substance and completed products distribution
center at Hassan has been useful from the monetary year under audit. Socks fabricating foundation has
been improved by 0.07 million sq.ft.As said in the earlier year Directors' Report, APIIC has
apportioned 27 sections of land of land, on which, your Company is setting up an assembling office of
0.60 million sq. ft developed region to fulfill the developing need of Men's business. At present, the
Company is currently getting different endorsements from the legal specialists to start the common
works. Likewise your Company proposes to redesign the current offices to expand the efficiency.A
new unit at K.R. Pet close to Mysore, of 0.2 million sq. ft., for assembling and unrefined substance
warehousing will be practical during FY 2019-20. Further arrangement concerning item range
verticals, versatile assembling and completed merchandise distribution center office is being executed
adding up to 0.3 million sq. ft. For extension of business the organization took choice to incresase
wellspring of money

• To fulfill the developing business sector need, we are equipped to expand our creation limit. Our
introduced limit across different units is spread over 2.20 million sft. across 15 assembling units and
5 completed products distribution centers.

• The Company is adding 1 lakh sft in Hassan, Karnataka for natural substance stockpiling, natural
substance quality and flexible preliminary cycles. The office is relied upon to be charged in the second
50% of FY22

• In Odisha, IDCO has assigned 28.8 sections of land of land in Ramdaspur Village in Cuttack District.
The Company will set up an assembling office for Men's' innerwear-Modern Classic vertical. The
 office will be a cutting edge grounds with Central Stores, Elastics, Socks and Cut to pack producing
tasks.

• The undertaking has been granted to famous project workers to assemble and meet IGBC certificate.
Ground evening out action has been advancing great and the venture is relied upon to be finished by
March''23.

• Project 'AARAMBH'- Smart appropriation place for completed products

• The Company has likewise left on its excursion with 3PL Warehouse Outsourcing model with one of
the confided in accomplice - DHL at Attibele-Anekal MCS office. It is taking into account both our
E-trade and Channel Distribution business necessities. Spread across 2 Lakh Sft., the distribution
centers are worked with top tier framework at standard with worldwide industry principles. This is (I)
Company's' first mechatronic stockroom for Channel Distribution with negligible human mediation
through consistent incorporation of cycles and innovation execution; and (ii) Best in class E-com
warehousing model to cook consistent request handling with center around administration quality and
speed to advertise alongside further developed stock precision and efficiency.

• Technology, Process Improvement and Modernization

• Supply chain arranging apparatus: Project SCORE-BlueYonder: As a component of our advancement

through digitization we are in the last phase of execution of the endeavor arranging device
''BlueYonder''. With this, our deftness and agility in different spaces of interest anticipating, client
responsiveness, further developed satisfaction, efficiency improvement, cost improvement and stock
enhancement will be a reality.

• Lab Accreditation: The Company has consistently centered around the nature of its cycles, sources of
info and items. In such manner, we have been making interest in our inventory network, hardware and
in preparing and fostering our partners. Our Hassan Unit Lab was conceded NABL Accreditation in
its lady endeavor for 22 quality test boundaries.

• Floor the executive’s framework: We have effectively finished directing the advanced processing plant
drive in our Hassan office. With this drive we can have continuous information, intercessions and
multi-level reports on key assembling exercises like ability organization, WIP the board, productivity
following, online stock administration, expertise stock drives, down time following and decrease.

• Socks Automation: To provide food the Kids socks market; we have added ten imported sewing
machines. These machine accompanies most recent auto toe interface innovation for a consistent toe
line.

• Narrow tape coloring: To satisfy the developing need for Jockey Women's' items we have added a
most recent tape coloring machine in our current Hassan tape coloring unit.

• As part of our modernization, we have added a top tier auto shaper at our Bangalore Manufacturing
office.

• As we keep on driving assembling greatness, we are enchanted to illuminate that we won the renowned
''ABK-AOTS Dosokai'' Category grant for Textile Industry for execution of 5S drives in the Company.
Our Units have partaken in different classes of the opposition and packed away prizes and grants.

• As well as if we see the debt and equity ratio of 2019 to 2020, we can understand that company use
more equity for finance but increase debt through ratio there is an upward in ratio which is bad sign of
financial condition of company
Reference

• https://www.moneycontrol.com/annual-report/pageindustries/directors-
report/pi35/2021
• https://www.moneycontrol.com/annual-report/ambikacottonmills/directors-
report/acm04#acm04
• https://www.business-standard.com/company/ambika-cotton-16020/financials-
overview
• https://www.toppr.com/ask/content/concept/long-term-and-short-term-finance-
202546/
• https://www.investopedia.com/terms/l/longtermdebt.asp
• https://www.britannica.com/topic/business-finance/Short-term-financing\
• https://www.businessmanagementideas.com/financial-management/sources-of-
finance/long-term-sources-of-finance/19444