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