LOVELY PROFESSIONAL UNIVERSITY

School of Mittal School of business Faculty of Business and Applies Arts

Name of the faculty member Dr. Lipika Dhingra

Course Code: ACC 205 Course Title: Cost accounting and

Management accounting
Academic Task No: 1 Academic Task Title:
Date of Allotment: 17.10.2021 Date of Submission: 27.10.2021
Student Roll No: RQ2011A29 Student Reg. No: 12013207
Term: 3 Section: Q2011
Max. Marks Marks. Obtained:
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Learning Outcomes: (Student to write briefly about learnings obtained from the

academic tasks) Declaration:

I declare that this Assignment is my individual work. I have not copied it from any other
students’ 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 otherperson.

Evaluation Criterion: Rubrics on different parameters

Student’ Signature: K LAZIM YOONAS

Evaluator’s Comments (For Instructor’s use only)

General Observations Suggestions for Improvement Best part of

assignment

Evaluator’s Signature and Date:

 AKSH OPTIFIBRE LIMITED

Aksh Optifibre Ltd is one of the leading providers of transmission

solutions for the telecom industries globally. The company was
founded in 1986 with major focus on manufacturing of optical fibre
cables. The portfolio later got reinforced with the addition of optical
fibres and fibre reinforced plastic rods. The company's products form
the core of intranet, Internet and other communication networks all
around the world. Manufacturing being its core business, Aksh
remained well aligned with the latest market trends and started
commissioning of detailed distribution networks, fibre-to-home and
turnkey projects for data communication.
Aksh has been innovative with its cable designs and manufactures a
wide array of optical fibre cables that include single-mode and multi-
mode cables, duct cables, armoured, FTTH (aerial installations and
fibre-to-home) cables, indoor and outdoor cables and special
application cables (hybrid, all purpose, ceramic armoured cables).
Aksh is now the largest FRP rod producer, supplying to all optical
fibre cable manufacturers in 56 countries across six continents. Aksh
is now the largest FRP rod producer, supplying to all optical fibre
cable manufacturers in 56 countries across six continents.

Vision of the Company: To become a global leader in enabling

simple innovative smart living.
Mission of the company

FRP Division: To sustain global leadership in FRP Rod business

OF & OFC Division: Strive to be most efficient OF and OFC producer
through innovation
Service Division: To develop, engage or participate in promoting
products and services which smarten People's life

Business of the company

AKSH was founded in 1986 with major focus on manufacturing of
Optical Fibre Cables. The portfolio later got reinforced with the
addition of Optical Fibers & Fiber Reinforced Plastic Rods. Their
products form the core of intranet, internet and other
communication network all around the world. Manufacturing being
the core business, Aksh remained in well aligned with the latest
market trends and started commissioning of detailed distribution
networks, Fiber To Home & Turnkey projects for data
communication.
AKSH has been innovative with its cable designs and manufactures a
wide array of Optical Fiber Cables that include Single Mode &
Multimode Cables, Duct Cables, Armoured, FTTH (Aerial installations
& fibre to home) Cables, Indoor & Outdoor Cables and Special
application cables (Hybrid, All purpose, Ceramic Armoured cables)
Their mission is to provide total network connectivity solutions from
end to end- from the server to the user’s workstation or within any
premise and campus environment from the home, office, data
centre, and factory floor. AKSH promise a wider reach, range, and
services to meet changing customer needs efficaciously. With
collective knowledge, track record of innovation and leading
research & development capability we are the holding the flag of
industry change. We are in a process of continuous improvement
and promise better services to our esteemed clients every time.
AKSH has a track record of building successful, long-term
partnerships with high-profile, blue-chip companies in the different
verticals:
• Telecommunications
• Utilities
• Railways
• Buildings
• Industrial
Their products are;
• Optical fibres: AKSH offers a wide range of optical fibres for a
variety of applications in telecommunication networks. AKSH
range of optical fibres delivers superior performance and are
ready for long haul to Fibre to The Home network.
• Optical Fibre Cables: AKSH's state-of-the-art optical fibre and
optical fibre cable plants are located in Rajasthan, India. AKSH
offers a complete range of end-to-end terrestrial fibre optical
cables for a variety of applications in telecommunication
networks.
• Cable Reinforcement Solutions: Aksh is pioneer in producing
reinforcement solutions for Optical Fibre Cables. With capacity
to produce one million Kilometre Glass and Aramid fibre
reinforced plastic rods (FRP Rods), Aksh is now the largest
producer in the world.
Management of the company

Dr. Kailash S. Choudhari

(Non Executive Chairman)

Dr. Kailash S. Choudhari, Key founding member of Aksh Optifibre

Ltd. He is responsible for spearheading the Company to its current
levels of success. His strategic leadership ensures company's future
relevance, credibility, and viability. His timely strategic initiatives has
lead the company to remarkable performance in a short timespan.
He also brings with him more than three decades experience of
enabling mobility and future technologies.
Mr. Satyendra Kumar Gupta
(Non-Executive Director)

Mr. Satyendra Kumar Gupta, aged 59 years, is an Alumni of Hans Raj

College, Delhi University and a qualified Chartered Accountant, He
has extensive experience of over 35 years in finance, accounts,
taxation, legal, secretarial function and handling the business
segment of the organization.
Mr. Rikhab Chand Mogha
(Non-Executive Director)

Mr. Rikhab Chand Mogha , is B.E (Electrical) from IIT Roorkee. He

started his career with UP State Electricity Board and has an
experience of around 40 years in manufacturing of Wire and Cable
Industry.

Mr. Harvinder Singh

(Independent Director)

Mr. Harvinder Singh is a qualified Law graduate and Certified

associate of Indian Institute of Banking & Finance (CAIIB) and
Masters in Commerce. He has worked for more than 40 years in
Banking Industry. He was a Member of the Board of Directors of
Bank of India for 6 years. He is currently working as an independent
Legal Advisor and is empaneled in various Nationalized Banks and
Indian and International Corporates.

Mr. Sunil Puri

(Independent Director)

Mr. Sunil Puri is qualified B.Tech (Mechanical) with Honors from

AMU. He has also worked for over 32 years in Procurement-SCM
function of different Companies out of which he was head of
Procurement - SCM function for 20 years. He is currently providing
Consulting Services to various clients.

Ms. Anuja Bansal

(Independent Director)

Ms. Anuja Bansal, is a qualified law graduate (LLb) and Company

Secretary. She has also mastered in Economics and also serve as
Registered Valuer (Securities and Financial Assets) under Insolvency
& Bankruptcy Board of India. She has rich experience in Legal,
Secretarial and Corporate Law Advisory Services.

Mr. Sanjay Katyal

(Independent Director)

Mr. Sanjay Katyal, is Mechanical Engineer with Hons Degree from,

AMU Aligarh,1985 Batch. He is a Charted Engineer and did various
certifications in financial and capital market affiliations with NSE,
ATMA, AIMA, IRDA, NAREDCO.

Competitors
AKSH OPTIFIBRE's main competitors are: Himachal Futuristic
Communications, Tratos, CBI-electric Group, STL (Sterlite
Technologies Limited)
 ANALYSIS OF FINANCIAL STATEMENT

Common size Balance Sheet as on march 2020 and 2021

AMOUNTS ARE IN LAKHS

Particulars 31-mar-2021 31-mar-2020 2021(%) 2020(%)

Assets

Non current
assets
Property, 14,804.92 16,093.09 26.9 28.26
plant and
equipment
Capital 53.98 224.97 0.09 0.39
work in
progress
Intangible 62.01 98.60 0.11 0.17
assets
Financial
assets
Investments 18,248.52 14,977.09 33.24 26.30
Loans 2,623.22 2,614.24 4.77 4.59
Other 118.00 633.32 0.214 1.11
financial
asstes
Deffered 208.83 356.02 0.38 0.62
tax assets
Other non 274.63 273.35 0.50 0.48
current
assets
 36,394.11 35,270.98 66.30 61.95
Current
assets
Inventories 3,638.84 4,171.27 6.62 7.32
Financial
assets
Trade 10,216.01 12,404.22 18.61 21.78
receivables
Cash and 246.74 548.05 0.44 0.96
cash
equivalents
Other bank 1,848.59 1,372.04 3.36 2.41
balances
Loans 838.69 1,083.02 1.52 1.9
Other 220.92 121.09 0.40 0.21
financial
assets
Current tax 99.64 122.65 0.18 0.21
assets
Other 1,384.92 1,834.23 2.52 3.22
current
assets
18,494.35 21,656.57 33.69 38.04
Total assets 54,888.46 56,927.25 100 100
Equality and
liabilities
Equity
Equity 8,134.90 8,134.90 14.82 14.28
share
capital
Other 18,562.84 18,320.95 33.81 32.18
equity
26,697.74 26,455.85 48.63 46.47
Non current
liabilities
Financial
liabilities
Borrowings 2,231.49 4,760.18 4.06 8.36
Trade
payables
Total 15.16
outstanding
dues to
small
enterprises
Total 836.94 1.47
outstanding
dues other
than above
Other 422.34 449.13 0.76 0.78
financial
liabilities
Deffered
tax
liabilities
Provisions 149.10 54.22 0.27 0.095
2,802.93 6,115.63 5.10 10.74
Current
liablities
Financial
liabilities
Borrowings 8,446.81 8,514.22 15.38 14.95
Trade
payables
Total 215.21 207.22 0.39 0.36
outstanding
due to small
enterprises
Total 7,175.60 7,459.44 13.07 13.1
outstanding
dues other
than above
Other 8,114.64 6,001.44 14.7 10.54
financial
liabilities
Other 849.22 699.74 1.54 1.22
current
liabilities
Provisions 476.35 582.48 0.86 1.02
Current tax 109.66 891.23 0.19 1.56
liabilities
25,387.79 24,355.77 46.25 42.78
Total equity 54,888.46 56,927.25 100 100
and
liabilities
Information used for analysis

Comparative Balance sheet

Comparative statements as on 31 march 2020 and 2021
Particulars 31-mar-2021 31-mar-2020 Absolute Percentage
change change(%)

Assets

Non current
assets
Property, 14,804.92 16,093.09 (1288.17) (8.0)
plant and
equipment
Capital 53.98 224.97 (170.99) (76.00)
work in
progress
Intangible 62.01 98.60 (36.59) (37.10)
assets
Financial
assets
Investments 18,248.52 14,977.09 3271.43 21.84
Loans 2,623.22 2,614.24 8.98 0.34
Other 118.00 633.32 515.32 81.37
financial
asstes
Deffered 208.83 356.02 (147.19) (41.34)
tax assets
Other non 274.63 273.35 1.28 0.46
current
assets
36,394.11 35,270.98 1,123.13 3.18
Current
assets
Inventories 3,638.84 4,171.27 (532.43) 12.76
Financial
assets
Trade 10,216.01 12,404.22 (2188.21) (17.64)
receivables
Cash and 246.74 548.05 (301.31) (54.97)
cash
equivalents
Other bank 1,848.59 1,372.04 476.55 34.73
balances
Loans 838.69 1,083.02 (244.33) (22.56)
Other 220.92 121.09 99.88 82.48
financial
assets
Current tax 99.64 122.65 (23.01) (18.76)
assets
Other 1,384.92 1,834.23 (449.31) (24.49)
current
assets
18,494.35 21,656.57 (3,162.22) (14.60)
Total assets 54,888.46 56,927.25 (2,038.79) (3.58)
Equality and
liabilities
Equity

Equity 8,134.90 8,134.90 0 0

share
capital
Other 18,562.84 18,320.95 241.89 1.32
equity
26,697.74 26,455.85 241.89 0.91
Non current
liabilities
Financial
liabilities
Borrowings 2,231.49 4,760.18 (2528.69) (53.12)
Trade
payables
Total 15.16
outstanding
dues to
small
enterprises
Total 836.94
outstanding
dues other
than above
Other 422.34 449.13 (26.79) (5.96)
financial
liabilities
Deffered
tax
liabilities
Provisions 149.10 54.22 94.88 174.99
2,802.93 6,115.63 (3312.7) (54.16)
Current
liablities
Financial
liabilities
Borrowings 8,446.81 8,514.22 (67.41) (0.79)
Trade
payables
Total 215.21 207.22 7.99 3.85
outstanding
due to small
enterprises
Total 7,175.60 7,459.44 (283.84) (3.80)
outstanding
dues other
than above
Other 8,114.64 6,001.44 2113.2 35.21
financial
liabilities
Other 849.22 699.74 149.48 21.36
current
liabilities
Provisions 476.35 582.48 (106.13) 18.22
Current tax 109.66 891.23 (781.57) (87.69)
liabilities
25,387.79 24,355.77 1,032.02 4.23
Total equity 54,888.46 56,927.25 (2,038.54) (3.58)
and
liabilities
 Comparative income statement
RUPEES IN LAKHS
Particulars 2021 2020 Absolute Percentage
change change
Revenue from 24,646.49 24,996.88 (350.39) (1.40)
operations
Less: cost of 12,650.40 12,243.53 406.87 3.32
goods sold
Gross profit 11,996.09 12,753.35 (757.26) (5.93)
Less: general 24,883.78 27,175.93 (2,292.15) (8.43)
and
administrative
expenses
Net operating (237.29) (2,179.05) (1941.76) (89.11)
profit
Add: other 632.72 517.56 115.16 22.25
income
Exceptional (87.16) (23,595.16) (23,508) (99.63)
item
Profit/(loss) 308.27 (25,256.65) (24,948.38) (98.77)
before tax
Less: Tax 85.59 (483.33) (397.74) (82.29)
expense
Profit/(loss) 241.89 (24933.96) (24,692.07) (99.02)
 Common-size income statement
RUPEES IN LAKHS
Particulars 2021 2020 2021 2020
percentage( Percentage(
%) %)
Revenue 24,646.4 24,996.88 10189.09 99.74
from 9
operations
Less: cost of 12,650.4 12,243.53 5229.81 203.65
goods sold 0
Gross profit 11,996.0 12,753.35 6227.01 195
9
Less: general 24,883.7 27,175.93 10287.56 91.75
and 8
administrativ
e expenses
Net (237.29) (2,179.05) 98.09 45.65
operating
profit
Add: other 632.72 517.56 261.57 2.075
income
Exceptional (87.16) (23,595.1 36.03 94.63
item 6)
Profit/(loss) 308.27 (25,256.6 127.44 101.29
before tax 5)
Less: Tax 85.59 (483.33) 35.38 1.93
expense
Profit/(loss) 241.89 (24933.96 100 100
)

Formula used for Calculations

• Absolute change = Current year- Previous year
• Percentage change = (Absolute change/Previous year(base
year))×100
• %2020 or 2021 = (Amount of item in that year/ total
assets(total))×100
• COGS= Opening stock +Purchases + Direct expenses- closing stock
• Gross profit = Sales – Cogs
• Net Operating Profit = Gross Profit- Operating expenses
• Profit before tax = Net Operating Profit + Non operating income- Non
operating expenses
• Net profit = Profit before tax – Tax.

References: Aksh OptiFibre Ltd. :: Annual Reports