Assignment No.

Aim: Prepare a financial feasibility report on a chosen product.

ABSTRACT
A financial analysis involves evaluating a company's financial health and
performance using various financial tools and techniques. This analysis
typically involves the examination of a company's financial statements,
including its income statement, balance sheet, and cash flow statement, to
identify trends and patterns that may indicate financial strengths or
weaknesses. Financial ratios are commonly used in a financial analysis to
measure a company's profitability, liquidity, solvency,and efficiency. These
ratios provide valuable insights into the company's financial position,
allowing stakeholders to make informed decisions about investment,
lending, and other financial matters.

INTRODUCTION:
Financial statements are formal records of financial activities and position
of a business, person or other entity. These statements include standard
reports like balance sheet, profit and loss statement, and cash flow
statement. They stand as one of the most essential components of business
information, and as the principal method of communicating financial
information about an entity to outside parties. In a technical sense,
financial statements are a summation of the financial position of an entity
at a given point of time. Generally, financial statements are designed to
meet the needs of many diverse users, particularly present and potential
owners and creditors.
Statement of Problem The profit over the years has been fluctuating. This
study helps in analyzing the reasons for such fluctuations. This study also
helps in analyzing the strength and weakness of boat lifestyle.

Objectives of study
• To examine and understand the liquidity and solvency position of the
company.
• To know the profitability position of the company
• To predict the future prospect of the company, past performance of the
company is analyzed Tools for analysis
• Ratio analysis
• Comparative balance sheet

Review of literature
Dharma raj, A.and Kathirvel N. (2016) explored an overview of new
industrial policy act 1991, which allow 100 percent foreign direct
investment.
An attempt is made to find out the effect of FDI on financial performance
of automobile industry. It is concluded that the liquidity ratios show minor
changes and profitability shows an increasing trend during post FDI when
compared to pre FDI. Post FDI efficiency ratio shows that companies are
efficiently utilizing the available resources.
Dewar Varun (2016) Study to analyze the effect of various fundamental
corporate policy variables like dividend, debit, capital expenditure on
stock prices of automobile companies of India. The study tends that
dividend & investment policy are relevant and capital structure irrelevant
to stock prices.
Company Profile boat was launched in 2016 by Aman Gupta and Sameer
Mehta. The company’s portfolio offers well-designed, innovative and
distinctive fashionable lifestyle-oriented products at attractive price points
targeted at a young and widely addressable audience within India. boat’s
product range includes an extensive catalogue of headphones, earphones,
smart watches, speakers, travel chargers and premium cables, with Indian
consumers’ desires and preferences at the core of its design. The home-
grown Indian brand has also raised approximately International Journal of
Research Publication and Reviews, Vol 4, no 5, pp 37-40 May 2023 38
$100 million from an affiliate of Warburg Pincus, a leading global private
equity fund focused on growth investing in January 2021. The company
currently has approximately 150 employees on its team across its offices in
Delhi and Mumbai.

Company highlight
Name : boat Lifestyle Legal name: imagine marketing Headquarters: New
Delhi, India Sector: Consumer Electronics
Founders : Sameer Mehta, Aman Gupta Founded 2016
Total Funding Raised: $177 million (October 2022)
Revenue : $362.6 million (INR 3,000 crore, FY22)
Valuation : $266.8 million (INR 2,200 crore, April 2021)
Website : boat-lifestyle.com
Consumer electronics startup boAt continues its dominance in the
wearables and wireless audio accessories segment in India. The company
registered over 2X growth in its scale for two consecutive fiscal years:
FY21 and FY22. But the firm’s profit dipped 20% in FY22 as cost of
procurement outpaced its revenue growth.
boAt’s revenue from operations shot up 2.2X to Rs 2,873 crore during the
fiscal year ending March 2022 as opposed to Rs 1,314 crore in FY21,
according to its consolidated annual financial statements with the Registrar
of Companies (RoC).
boAt drives most of its revenue from the sale of audio devices such as
wired earphones, wireless earphones, headphones, speakers, wired
headphones, and soundbars — all of which contributed 79.2% of the total
collections. Income from this vertical rose 85.3% to Rs 2,276 crore during
FY22 from Rs 1,228.6 crore in FY21.

boAt drives most of its revenue from the sale of audio devices such as
wired earphones, wireless earphones, headphones, speakers, wired
headphones, and soundbars — all of which contributed 79.2% of the total
collections. Income from this vertical rose 85.3% to Rs 2,276 crore during
FY22 from Rs 1,228.6 crore in FY21.

The sale of wearables including smart watches formed around 18% of the
total revenue which ballooned 9.4X to Rs 515.5 crore in FY22 from Rs
54.8 crore in FY21. The company also cornered Rs 81.5 crore from the
sale of cables, charges, mens grooming kits, and gaming equipment during
FY22.
boAt booked Rs 13.5 crore as finance income in FY22 which comprised of
interest on fixed deposits and other non-operating income.
boAt leads the true wireless stereo (TWS) segment and reported a 46%
market share as of Q2, 2022, according to Counterpoint Research. Noise,
Boult, MIVI, and pTron were next on the list. As far as manufacturing is
concerned, nearly 85% of the devices are still being imported from other
countries, mainly China. The cost of procurement of material turned out to
be the largest cost element for the company, forming over 80% of the total
expenditure. This cost surged 2.3X to Rs 2,346.6 crore in FY22 from Rs
1,020.84 crore in FY21.
boAt outsources its warranty claim and after-sale services to third party
contractors and its warranty claim expenses rose 2.6X to Rs 136.6 crore in
FY22. Significantly, its employee benefit expenses soared 3.8X to Rs
56.12 crore in the last fiscal year.

Unlike most unicorns and other consumer electronic companies, boAt

spent only 3.6% of its overall cost on marketing. This cost stood at Rs 99
crore during FY22.
It also incurred Rs 43.32 crore and Rs 17 crore respectively on logistics
and legal fees which steered its total expenditure by 2.3X to Rs 2,787 crore
in FY22 as compared to Rs 1,202 crore in FY21.
With over 2.3X jump in the total cost, boAt’s profits narrowed by 20.6% to
Rs 68.7 crore in the last fiscal year against Rs 86.5 crore during FY21. Its
cash outflows from operations also grew 2.6X to Rs 368.7 crore during the
12-month period ending March 2022.
As per Fintrackr’s analysis, EBITDA margin and ROCE were depressed
to 4.96% and 19.86% respectively which could be attributed to higher cash
burn during FY22. On a unit level, boAt spent Re 0.97 to earn a rupee of
operating income during the same period.
In the last quarter of FY22, boAt filed its DRHP with SEBI to launch its
initial public offer (IPO) worth Rs 2,000 crore and got approval for the
same in May 2022. However, it withdrew its listing plans and instead went
for a $60 million fresh round from Warburg and Malabar in October 2022.
boAt directly competes with the bootstrapped firm Noise which also
registered 2.26X growth in its operating scale to Rs 793 crore during
FY22. Unlike boAt, it managed 9% growth in its profit which stood at Rs
36 crore in the last fiscal year (FY22).
With its ‘affordable cool’ image, boAt has had a fantastic journey so far.
However, as always, the caveat with the brand remains the strong platform
dependence as well as the risk of disruption from any of the upstarts in the
market. The firm will definitely face a challenge on the margin front, and
how it tackles that will probably define its future.

Teachers Signature..............................