Corporate, Financial,

Reporting and Analysis

PROJECT REPORT ON
Hawkins Cooker Ltd.

Group Members

Name Roll No. Section :- B

1. Himanshu Nagvani 202212019 Group:- 09
2. Harsh Shrivastava 202212018 Course faculty:- Dr Pawan Jain

Details of the company

Hawkins Cookers Limited has been in business since 1959. Today, it has two offices, three
factories and about 700 persons working. It is the leader in the pressure cooker market in
India and has exported its products since 1974 to various countries in each of the six
continents of the world.

Hawkins has sold over 105 million pressure cookers and cookware worldwide. All Hawkins
pressure cookers are listed by Underwriters Laboratories, USA, an independent Worldwide
institution testing products for public safety. From February 1, 2021, the Government of India
has made it mandatory to list all Pressure Cookers manufactured and sold in India with the
Bureau of Indian Standards, commonly known as ISI. Hence additionally, all Pressure
Cookers manufactured by us have certification of BIS and carry the ISI stamp mark too.
 Objective of the report: - To carry out the Financial Statement Analysis of Berger Paints.

 Period of the study: - 3 years (2018-19; 2019-20 and 2020-21). We will scrutinize the
company’s Annual report for the analysis.

The annual report consists of Director’s report, Chairperson’s statement, corporate

governance, Auditor’s report, financial statement which includes Balance Sheet, Income
statement also known as Profit and Loss Statement, Cash Flow statement, Notes of Financial
Statement, etc.

 Type of data: - Secondary Data.

 Analysis of Data: - Ratio Analysis as a Tool to analyse Financial Statements

Ratio Analysis a quantitative method of gaining insight into a company's liquidity, operational
efficiency, and profitability by studying its financial statements such as the balance sheet and
income statement.
  What are the main Revenue Generating Activities (Main Business) of the company?

The main Revenue Generating Activities of the company is pressure cookers and
cookware worldwide.

 What are the areas which are being covered by the Company in its Accounting
Policies? Summarize the Accounting Policies being followed for Depreciation,
Inventory Valuation and Basis for Preparation of Accounts.

Accounting Policies
 Property, Plant and Equipment (PPE)
 Intangible Assets
 Impairment of Non- Financial Assets
 Financial Instruments
 Cash and Cash Equivalents
 Provisions and Contingent Liabilities
 Employee Benefits
 Earnings Per Share
 Taxes on Income

 Depreciation & Amortisation

Depreciation on PPE for the year has been provided on all assets on Straight Line Method,
pro rata to the period of use, as per the useful lives prescribed in Schedule II to the
Companies Act, 2013, except leasehold land which is amortised equally over the lease period.
Assets costing less than RS.5000 are depreciated at 100% in the year of acquisition.
 Inventories
Inventories, are valued at the lower of cost and net realisable value (NRV). Raw Materials
are valued at weighted average cost. Inventory other than Raw Materials namely, packing
Material, Stores & Spares and Stock-in-Trade are valued at the lower of First-In, First-Out
cost and NRV. Work-in-Progress and Finished Goods include costs of conversion and an
appropriate share of production overheads based on normal production capacity. Cost of
inventories include all costs of purchases and other related costs incurred in bringing the
inventories to their present location and condition. Slow, non-moving, obsolete and defective
inventories identified are duly provided for and valued at NRV.
 Basis for Preparation of Accounts
 In the preparation of the Annual Accounts, the applicable accounting standards have been
followed and proper explanation given relating to material departures, if any. The Directors
have prepared the Annual Accounts on a going-concern basis. The financial statements of the
Company have been prepared in accordance with the Indian Accounting Standards as notified
by the Ministry of Corporate Affairs pursuant to Section 133 of the Companies Act, 2013
(“Act”), the Companies (Indian Accounting Standards) Rules, 2015, as amended, and other
applicable provisions of the Act. The Balance Sheet, Statement of Profit and Loss and
Statement of Changes in Equity have been prepared and presented in the format prescribed in
the Division II of the Schedule III to the Companies Act, 2013. The Statement of Cash Flows
has been prepared and presented as per the requirements of AS 7 Statement of Cash Flows.
The disclosure requirements with respect to the items in the Balance Sheet and Statement of
Profit and Loss Account are presented by way of notes forming part of financial statements.
The Company has considered a period of twelve months as the operating cycle for the
 Comment on the cash flows from Operating Activities, Financing Activities and
Investing Activities. During the period of study, whether these cash flows have
improved or otherwise. Provide the reasons for same.

Cash generated from operating Activities: It can be seen that in the year 2018-19 cash flow
was negative and in the year 2019-20 turns positive due to increase in Profit After Tax and
Trade Payable and it further increase in the year 2020-21 due to increase in current liabilities.
Cash generated from Investing Activities: It can be seen that in the year 2018-19 cash flow
from investing activities was positive and in the subsequent years ahead it becomes negative
indicates company investment in research and development activities.
Year 2018-19 Year 2019-20 Year 2020-21

Cash flow from (614.91) 6568.30 188,93.91

Operating
Activities(In Lakhs)

Cash flow from 4154.59 (19,70.54) (119,38.89)

Investing
Activities(In Lakhs)

Cash flow from (4531.00) (5215.24) (4015.77)

Financial
Activities(In Lakhs)

Cash generated from Financing Activities: Negative cash flow from Financing Activities
indicates that company has paid out capital such as long- term debt or making a dividend
payment to shareholders.
 -4531 Cash Flow
-5215.24 -4015.77
100%
-11938.89
90%
80%
70% -1970.54
60% 4154.59 18893.91
6568.3
50%
40%
30%
20%
-614.91
10%
0%
Year 2018-19 Year 2019-20 Year 2020-21

Cash flow from Operating Activities(In Lakhs) Cash flow from Investing Activities(In Lakhs)
Cash flow from Financial Activities(In Lakhs)

 RATIO ANALYSIS FOR HAWKINS COOKER LTD.

Sr.NO Particulars 2018-19 2019-20 2020-21

A.1 Net Operating Revenue Ratio 8.0% 10.7% 10.4%

A.2 Net Profit Ratio 8.31% 10.76% 10.49%

 A net operating ratio is a calculation that aids in evaluating the relationship between a
company's operating expenses and its total revenue. This ratio indicates the amount of
profit available for dividend distribution after deducting total expense from total revenue.
 

Chart Title
12.00%
10.70% 10.40%
10.00%
8.00%
8.00%

6.00%

4.00%

2.00%

0.00%
2018-19 2019-20 2020-21

Net Operating Revenue Ratio Net Profit Ratio

 Sr.NO Particulars 2018-19 2019-20 2020-21

B Operating Profit Ratio 13.84% 15.89% 15.37%

 Operating Profit Ratio: This ratio indicates the profit available after deducting
Manufacturing and operating Expense from operating Revenue. In above case Hawkins
company ratio increases thereby indicating sufficient cushion available for paying Interest

Operating Profit Ratio

16.50%

16.00% 15.89%

15.50% 15.37%

15.00%

14.50%

14.00% 13.84%

13.50%

13.00%

12.50%
2018-19 2019-20 2020-21

& Taxes.

Sr.NO Particulars 2018-19 2019-20 2020-21

C D/E Ratio 0.24 0.27 0.24

 Debt to Equity Ratio: From the figures above we can see that the company is maintaining a
Healthy Debt to Equity ratio of less than one which good financial health of the company.

S.NO Particulars 2018-19 2019-20 2020-21

D Current Ratio 186% 185% 180%

 Current Ratio
187%
186%
186%
185%
185%
184%
183%
182%
181%
180%
180%
179%
178%
177%
2018-19 2019-20 2020-21

 Current Ratio: By Looking at the Hawkins Cooker Ltd Current Ratio we can deduce that the
company has good ability for firms short- term debt and company has a healthy figures all
the subsequent years.

S.NO Particulars 2018-19 2019-20 2020-21

E NC Fixed Tangible Asset to NC Liabilities Ratio 0.65 0.59 0.33

 Non - Current Fixed Tangible Asset to Non - current Liabilities Ratio: From the data above
we can see that the company has maintained a good ratio and it is decreasing subsequently
year by year which is not a good sign for the company.

S.NO Particulars 2018-19 2019-20 2020-21

F Total Asset to Total NC Liabilities Ratio 10.54 17.44 13.67

 Total assets to Total NC liabilities Ratio: It indicates the company Liquidity and margin of
safety for paying Long term debts, here we can see that the company ability to pay off long term
debts is increasing year on year subsequently thereby it’s a good sign for the company.
 S.NO Particulars 2018-19 2019-20 2020-21

G.1 Trade Receivable Turnover Ratio 43.91 27.19 19.04

G.2 Inventory Turnover Ratio 7.82 5.78 6.68

 Inventory Turnover Ratio: This Ratio is useful for Managers and Working Capital Funds
providers. This Ratio indicates the velocity with which Inventory moves and how quickly a
company is able to convert its inventory into Cash or Cash Equivalents.

Chart Title
50
43.91
45
40
35
30 27.19
25
19.04
20
15
10 7.82 5.78 6.68
5
0
2018-19 2019-20 2020-21

Trade Receivable Turnover Ratio Inventory Turnover Ratio

S.NO Particulars 2018-19 2019-20 2020-21

H Cash Realization Ratio -11.34 90.60 234.29

Cash Realization Ratio

250 234.29

200

150

100 90.6

50

0 -11.34
2018-19 2019-20 2020-21
-50
 Cash Realization Ratio: As we can see that the cash realization ratio is increasing each year
which is a good sign and indicates better quality of earning of the company.

S.NO Particulars 2018-19 2019-20 2020-21

I Earnings Per Share 102.54 137.11 152.52

 Earnings per share: This ratio is usefull for shareholders indicates the amount of profit
available for equity shareholders after paying off all the expenses.

S.NO Particulars 2018-19 2019-20 2020-21

J Interest Coverage Ratio 21.69 25.65 23.85

Interest Coverage Ratio

26 25.65

25

24 23.85

23

22 21.69

21

20

19
2018-19 2019-20 2020-21

 Interest Coverage Ratio: It’s a debt and profitability ratio used to determine how easily
a company can pay interest on its outstanding debt. Here we can see that the company
has good coverage ratio.
 Here we can see that the ratio increases from 21.69 to 23.85 from year (2018-19) to year
(2020-2021) which is a good sign.
K) Does company’s Industry Segment play any role in deciding profitability, Liquidity
and solvency of the company? How?
 Yes, company’s Industry Segment plays a role in deciding profitability, Liquidity and
solvency of the company. The basic purpose of this is to determine the importance and
implication of industry segment. By comparing a particular ratio of company with that
of industry as a whole, a business owner can learn more about where its company
business stands in comparison with the industry average.

(L) Share price movement chart of the company from July 15, 2022 – September 15,
2022.

 Dividend/bonus given by the company during last three years.

2018-19 2019-2020 2020-2021

YEARS
DIVIDEND RS. 80 per share RS. 80 per RS. 90 per share
RECEIVED Dividend. share Dividend. Dividend.
 Bibliography:

1. Hawkins Cooker limited, [Online]. Available: https://www..com/about-us/company-profile.html.

[Accessed September 2022]
2. "Hawkins Cooker Ltd”-Annual-Report-21-22,"Hawkins Cooker Ltd”, [Online].
Available:file:///C:/Users/Hp/Desktop/Annual-Report-21-22.pdf.[Accessed September 2022].
3. "Hawkins Cooker Ltd-Annual-Report-20-21," Berger paints, [Online].
Available: file:///C:/Users/Hp/Desktop/annual-report-20-21.pdf. [Accessed September 2022].
4. "Hawkins Cooker Ltd-Annual-Report-19-20,"Hawkins Cooker Ltd”,
[Online].
Available: file:///C:/Users/Hp/Desktop/ar-19-20.pdf.[Accessed September 2022].
5. "Upstox," Hawkins Cooker Ltd, [Online]. Available: https://pro.upstox.com/. [Accessed
September 2022].