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BMW INDUSTRY LTD.

St. Kabir Institute of Professional Studies


Table of Contents
1. Company Profile and Information:............................................................................................2
2. Graphical Representation of the data:.......................................................................................4
3. Descriptive statistics and interpretation on company’s performance:....................................6
4. Descriptive statistics and interpretation on stability:...............................................................8
5. Calculation of estimation and interpretation of result:............................................................9
6. Calculation of correlation and interpretation of result:.........................................................10
7. Overall interpretation of company’s financial position:.........................................................11
8. Reference:...................................................................................................................................12
9. Appendix- Financial statement of the company:.....................................................................13
1. Company Profile and Information:

BMW industry limited is a publicly traded business that was founded on


October 21, 1980. It is public limited corporation with headquarters in Kolkata, West
Bengal. It has a total paid-up capital of INR 23.50 crore and an authorised share
capital of INR 45.00 crore.

For the fiscal year ending on march 31, 2020, BMW industries limited expects
operational revenues of around INR 490 crore. The company’s EBITDA has dropped
by -3.30 percent over year. Its book net worth has improved by 7.50 percent at the
same period.

BMW industries limited has a revenue or turnover of over INR 450 crore.

 The company’s net worth has improved by 7.50 percent.


 The company’s EBITDA has dropped by -3.30 percent.
 The company’s total assets have declined by 1.76 percent.
 The company’s liabilities have grown by 1.15 percent.

Ram Gopal Bansal, the board’s longest-serving director, was appointed on


October 15, 1980. He has been a member of the board of directors for over 40 years.
He holds the most other directorships, with 21 on the boards of companies. Through its
directors, the corporation is linked to 44 other companies in total.
BMW industry limited is a steel production, and distribution firm established in
India. Structural steel, infrastructure, tower manufacturing, rolling mill, are among the
company’s goods and service centre and cold rolling mill are among the company’s
goods and services. Poles and tubular structure are example of structures are example
of structural steel items. Its projects include concrete roads and bridges, as well as
infrastructural linkages and state highway projects. It runs a tower manufacturing
plants that creates prototype, fabricates transmission towers, structure, and microwave
towers. It produces structural steel such as angle, beams, and channels among other
things. It also owns and runs a galvanised sheet cold rolling mill complex.
2. Graphical Representation of the data:

Import of total finished steel (in million toons)


Year Import of total finished steel
FY14 5.5
FY15 9.2
FY16 11.5
FY17 7.45
FY18 8.05
FY19 8.75

Import of total finished steel (in mil-


lion toons)

14
12
10
8
6
4
2
0
Year FY14 FY15 FY16 FY17 FY18 FY19

Series1 Series2 Series3 Series4

Under the historical cost convention, BMW Industries Limited used the accrual
method. It’s statical statement were produced in accordance with accounting standards
set forth in the section of the company, as well as the companies rule.
Import of total finished steel (in million toons)
Year Import of total finished steel
FY14 5.5
FY15 9.2
FY16 11.5
FY17 7.45
FY18 8.05
FY19 8.75
Import of total finished steel (in mil-
lion toons)

14 Import of total finished steel (in mil-


12
10
lion toons)
8
10 6
9 4
8
7 2
6 0
5 Year FY14 FY15 FY16 FY17 FY18 FY19
4
3 Column B Column C Column D Column E
2
1
0
Year FY14 FY15 FY16 FY17 FY18 FY19

Series1 Series2 Series3 Series4


3. Descriptive statistics and interpretation on company’s
performance:

Investment necessitates a through examination of financial date in order to determine


a company’s genuine net value. This is usually done by looking at the profit and loss, balance
sheet and cash flow statement of the firm. This can take a long time and be inconvenient.
Looking at company’s financial ratio may assist make sense of the overwhelming quantity of
information included in its statistics data, making it simple to learn about its performance.
The company’s basic price is not good of the company and also a cash price of
the company in mae’21 is -3.16 is also not a good for the company. The revenue from the
operation is good in all of the last three years that the better sign of the company and it’s
growth in the marketing area.
4. Descriptive statistics and interpretation on stability:

 Current assets were 502 crores on march 31, 2019 compare to 490 crores on March
31, 2018.
 On March 31, 2019 the current ratio was 1.50, comparable to 1.45 on March 31, 2018.
 Inventory levels fells from 225 crores on March 31, 2018 to 210 crores on March 31,
2019.
 On March 31, 2019 current liability were 350 crores, down from 345 crores on March
31, 2018.
 On March 31, 2019 cash and bank balance were 13 crores, up from 11 crores on
March 31, 2018.

During the fiscal year under review, your company did admirably. It has maintained a
long-term growth strategy. Your directors are delighted to inform you that in the
previous financial year, your firm constructed a new rolling unit for the manufacturing
of TMT Re Bar under the brand name "BANSAL SUPER," and the company has now
established its product in the markets. The Company has built a distribution channel by
choosing new distributors and dealers.

The marketing staff has been bolstered, and efforts to grow the market are underway.
5. Calculation of estimation and interpretation of result:

We combined strategic assertiveness and tactical prudence at BMW Industry


ltd. They concentrated on debottlenecking-driven capital investments with a
favourable short-term payback, prioritising cash flows above paper profits and
reinvestment in the firm. Their strategic balance is measured by our low gearing and
capacity to fund corporate development primarily via accruals. They will continue to
look for asset light possibilities where they can outsource product manufacturing and
sell-to-make.

At BMW industries ltd, They believe that planned expansion, rather than one-
time profit spikes, is the most effective approach to assure a company's long-term
viability. The business has directed accruals into incremental investments and debt
reduction, de-stressing the balance sheet, in keeping with this conviction. As a
consequence, the company's debt has been reduced every year for the past five years.

The Company has eleven subsidiaries as of March 31, 2020. The Company's
and its subsidiaries' Consolidated Financial Statements, prepared in accordance with
Indian statistics Standards notified under the Companies Rules, 2015, are included in
the Annual Report and reflected in the Company's Consolidated Statistical Statements.
Members requesting information from BMW Industries Limited will have access to
the subsidiaries' annual statements and relevant comprehensive information at any
time.
6. Calculation of correlation and interpretation of result:

Year Sale profit


2015 750.3 30.9
2016 950.5 52.3
2017 852.3 39.9
2018 559.5 25.5
2019 350.8 -102.15

950.5
852.3
750.3

559.5

350.8

30.9 52.3 39.9 25.5


1 2 3 4 5
1 2 3 4 5
-102.15

Year Sale profit

Correlation 0.878306

Interpretation:

The company’s sale is more but the company can not get more profit
so the company is not going well. The correlation of the company is strongly
positive.
7. Overall interpretation of company’s financial position:

To construct the Consolidated money statements in line with the measuring


theory of Ind AS, management should make estimates, judgments, and assumptions.
These estimates, judgements, and assumptions affected liabilities at the date of the
Consolidated money statements, as well as the amounts of revenues and costs during
the period. statistics estimations may differ from one to the next. Actual results could
differs from these predicted. Acceptable modifications in estimates are developed
when management becomes more aware of changes in the conditions that underpin the
projections. Variations between actual outcomes and estimates are recognised in the
year in which they became apparent, and their repercussions, if significant, are noted
in the comments to the Consolidated money statements.

By examining the degree of impairment allowance owing to customers'


inability to make required payments, the Group determines the level of impairment
allowance whether there is any objective evidence that trade receivables are impaired.
The projections are based on the ageing of the trade receivables balance, trade
receivables creditworthiness, and past write-off history. Actual write-offs would be
bigger than predicted if the trade receivables' financial status deteriorated.
8. Reference:

 https://www.tofler.in/bmw-industries-limited/company/
L51109WB1981PLC034212/financials
 https://www.moneycontrol.com/
9. Appendix- Financial statement of the company:

Skewness -0.04794646

Due to the inherent limitations of internal financial controls with regard to


Financial Statements, including the possibility for cooperation or improper
management override of safeguards, material misstatements due to error or fraud may
occur and go unnoticed.

Furthermore, any forecasts of any internal financial controls evaluation with


reference to Financial Statements for future periods are subject to the risk that the
internal financial controls will fail. Profit is 9.85% is not for the margins and the
company should have to get more statistical structure. EPS is less than the 60% ,
because of that the regression cannot be accepted.

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