analysis and interpretation

Analysis and interpretationAnalysis and financial statement is largely a study of relationship among the financial factors in a business as disclosed by a single set of statements, and a study of the trend of these factors as shown in the series of the statements. Analyzing financial performances is a process of evaluating the relationship between the component parts of financial performance to obtain the better understanding of a firms position and performances. In short, analysis of financial is the technique of x-raying the financial position and progress of the concern Analysis of the financial performances of the company is done completely based on the companys financial performances this statement give a clear picture of the companys financial position, its performances and cash flow. The basic financial performances that is the balance sheet and the various transactions on the operational and financial position of the company the balance sheet of the company gives a summary of the assets and liabilities of undertaking at particular point of time. It reveals the financial status of the company.

Steps involved in the analysis of financial performancesThe work of analysis of financial performances involves three steps or processes by are as follows Analysis Comparison Interpretation Analysis Analysis of financial performances in splitting up or regrouping of the figures found in the financial performances into desire homogenous and comparable component parts. In other words, analysis means, re-classification and re-arrangement of the data found in the financial performances into groups of a few principal elements according to their

resemblances and affinities that is close connection and presenting them in the form most convenient for interpretation

Comparison After the figures contain in the financial performance are dissected or split into the required comparable components parts, the inter connected figure must be compared with each other, their relationship must be measured

Interpretation Interpretation is the formation and expression of opinion about the progress, financial position and the future prospects of the business

Table 1.1Table showing current assets and fixed assets of the company (RS IN CRORES) yearCurrent assetsFixed assets Percentage

2010- 1112385144.7%

2011- 1213592146.7%

2012-1314896154.1%

Chart showing current assets and fixed assets of the company

ANALYSIS AND INTERPRETATIONA table showing current assets and fixed assets of the year 2010,2011,2012 respectively. In the year of 2010 and 2011 slight changes have been taken place in the current assets and current but in year 2012 it have been increased up to 7.4% of assets in the company A chart showing increasing in current assets in the year 2012 than the fixed assets this shows assets in the company is been more

TABLE 1.2Table showing fixed assets and quick assets of the company (RS IN CRORES) yearFixed assetsquick assetspercentage

2010- 118545188.8%

2011-129240230%

2012-139637259.4%

Chart showing fixed assets and quick assets of the company

ANALYSIS AND INTERPRETATIONA above table showing fixed assets and quick assets of the year 2010,2011,2012 respectively. in the sudden changes have been taken place in the fixed assets up to 41.2% in assets of company in the year 2011 and again changes have been taken place in the year 2012 up to 29.4% A chart showing increasing in fixed assets in the year 2010 , 2011, 2012 than the quick assets this shows purchase of the fixed assets of the company is been more

TABLE 1.3Table showing sales and expenditure of the company (RS IN CRORES)yearsalesexpenditurePercentage

2010 -11164158103.7%

2011-12164155105.8%

2012-13211140150.7%

Charts howing sales and expenditure of the company

ANALYSIS AND INTERPRETATIONA above table showing sales and expenditure of the year 2010,2011,2012 respectively. In the year of 2011 the 2.1% of the sales and expenditure have been increased but in the 2012 the company has incurred up to 44.9% of sales A above chart showing sales and expediture of the company increasing in sales in the year 2012 compared to 2010 2011TABLE 1.4Table showing profit after tax and profit before tax of the company (RS IN CRORES)YearProfit before taxProfit after taxpercentage

2010 -1113493144.0%

2011 -129253173.5%

2012 -13 1347455.2%

Chart showing profit after tax and profit before tax of the company

ANALYSIS AND INTERPRETATION The above table shows the earning before profit is been increased in the year 2010-11 compared to 2012-13the above chart indicates that the company earnings before tax(EBT) is more during 2010 2012 because less interest preference dividend to the investors so during 2010-11 paid more tax non utilization of leverage TABLE 1.5Table showing current assets and current liabilities of the company (RS IN CRORES)YearCurrent assetsCurrent liabilitiespercentage

2010 -1112356121.9%

2011 -1213556323.9%

2012 -13 14859125.0%

Chart showing current assets and current liabilities of the company

ANALYSIS AND INTERPRETATION A above table showing current assets and current liabilities of the year 2010,2011,2012 respectively. the company liquidity position is not effective not satisfactory because more current liabilities decreased in working capital the above chart showing more current liabilities then the current assets in the year 2010,2011,2012

TABLE 1.6Table showing share holding and cash balance of the company (RS IN CRORES)YearShare holdingsCash balancepercentage

2010 -11661285231.9%

2011 -12709240295.4%

2012 -13 812377215.3%

Chart showing share holders and cash of the company

ANALYSIS AND INTERPRETATION A above table showing share holders and cash of the year 2010 ,2011 ,2012 respectively indicates that share holders (SHS) increasing from the year 2010 -2012 during 2010-2011 661 cores then which increasing during 2011-12 up to 7.2 % increase in the year 2011 up to .63.5% But in the year 2012 it as been decreased up to 80.1% in the company A above Chart showing share holders of the company is been more 2012 but cash generated in all the year is been normal TABLE 1.7Table showing closing capital and working capital of the company (RS in Cores) YearClosing capitalWorking capitalpercentage

2010 -11286741.7%

2011 -12247930.3%

2012 -13 378941.5%

Chart showing closing capital and working capital of the company

ANALYSIS AND INTERPRETATION A above table showing closing capital and working capital of the year 2010,2011,2012 respectively in the year 2011 is been decreased up to 11.4% but in the 2012 again it has been increased to 41.5% A above Chart showing closing capital and working capital of the company is been more than the closing capital but in the year 2011 it is been decreased up to 11.4%

TABLE 1.8Table showing finance activity and investment activity of the company (RS in Cores) Yearfinance activityInvestment activitypercentage

2010 -1132300%

2011 -121111100%

2012 -13 31300%

Chart showing finance activity and investment activity of the company

ANALYSIS AND INTERPRETATION

A above table showing finance activity and investment activity of the year 2010, 2011 ,2012 respectively. The company need to secure investment in other securities of the companies than their financial activities Chart showing finance activity and investment activity of the company in the year 2011 finance activity is been more than investment activity

TABLE 1.9Table showing operating activity and finance activity of the company (RS in Cores) YearOperating activityFinance activity

2010 -1183

2011 -12711

2012 -13 153

Chart showing Operating activity and Finance activity of the company

ANALYSIS AND INTERPRETATION A above table showing operating activity and finance activity of the year 2010,2011,2012 respectivelyThe company is not having employee recruitment and orders/ reorders in company Chart showing operating activity and finance activity of the company in operating is been increased in the year 2012 then the financing activity

TABLE 1.10Table showing earning in foreign exchange and expenditure in foreign exchange of the company (RS in Cores) YearEarning in foreign exchange expenditure in foreign exchange percentage

2010 -11890801112.5%

2011 -126580.4016.4

2012 -13 770184277.7%

Chart showing earning in foreign exchange and expenditure in foreign exchange of the company ANALYSIS AND INTERPRETATIONA above table showing earning in foreign exchange and expenditure in foreign exchange of the year 2010,2011,2012 respectively in the year 2012 profit earning and expenditure is been decreased up to

1096.1 compared to previous year but in 2012 it has been increased up to 4261.3%because of due to FDI/FIT business cycle fluctuation The above Chart showing of the company earning in foreign exchange and expenditure in foreign exchange but here earning is itself more than the expenditure so we can analysis that company is earning more income from the foreign exchange.

TABLE 1.11Table showing deferred tax assets and deferred tax liabilities of the company (RS in Cores) Yeardeferred tax assetsDeferredtax liabilities percentage

2010 -1171689804.4%

2011 -127371167%

2012 -13 654(85)769.4%

Chart showing deferred tax assets and deferred tax liabilities of the company

ANALYSIS AND INTERPRETATIONA above table showing deferred tax assets and deferred tax liabilities of the year 2010,2011,2012 respectively in the year 2011 it has been decreased compared to 2010-2011and again it has been increased in the year 2012A above Chart showing deferred tax assets and deferred tax liabilities of the company

TABLE 1.12Table showing other income and other expenditure of the company (RS in Cores) Yearother incomeother expenditurePercentage

2010 -11227927.8%

2011 -12247233.3%

2012 -13 384192.6%

Chart showing other income and other expenditure of the company

ANALYSIS AND INTERPRETATIONA above table showing other income and other expenditure of the year 2010,2011,2012 respectively in the year 2011 other income and expenditure is been decreased up to 5.5% and in the year 2012 it has been increased up to 59.3% in the yearA above Chart showing other income and other expenditure of the company expenditure is been more in the year 2010&2011 compared to 2012

Name of booksAuthors

Financial management

Management accounting Cost and financial analysis

Professor H.R APPANAIAHDr P.N REDDY Dr B.G SATHYAPRASAD

M.N.ARORA JAWAHAR LAL

Website WWW.mysoresandal.com inWWW.karnataka soap detergents limitedWWW.google.comYahoo.com

ReportAnnual reports for the year of 2010, 2011,2012Journal of KSDL

FINDINGS The company investing more amount on current assets than fixed assets The company investment analysis specifying those more flow of cash on towards quick assets The company expenditure on promotion mix is higher during 2010, 2011, 2012 The company paying tax during 2010-11 and 2012-13 The company liquidity position is not sufficient because increasing in cash flow system frequently/ simultaneously The company having poor investment activity than there finance activity The company having foreign earning capacity there foreign exchange expenditure more during 2010-11 due to rupee diversification The entire department in the company is computerized Issue of additional capital share existence in IPO The company need to increase / expand the number of branches for the future requirements The company having quality assurance in the production outstand try to maintain the same The company had wider width product length try to maintain the same level of product differentiation The company vision/mission states the more preference of purity and quality in reality The company having more than 8 competitors opponents in the markets by adopting by the market strategy can meet competition in the market The company maintain good system of HR and HR persons

Need to maintain the disciplinary financial measure and individual and development and performance appraisal system

SUGGESTION AND CONCLUSION the company should see the expenditure will be less then income so they can gain more profits the company should see the financing investments activities should be sufficient the hypothesis made in the beginning of tnhe study cash flow and its management is efficient, effective and productive the performance of KS&DL in the financial year 2009-10,2010-11 was stabled and not much satisfactory the profits of the company had been stabilized in the financial year 2009-10 the result of an increase in the turn over of the company the company should make an investments in fixed assets control of promotional expenses other than the advertisement use leverages for reducing tax Decreasing in cash balance and dead amount Maintain of spot and future transaction is good for the company The company applying for the other qualifying certificates

CASH FLOW STATEMENT OR THE YEAR ENDED31ST MARCH 2010

PARTICULARS31ST MARCH 2010

AMOUNT(RS)AMOUNT(RS)

CASH FLOW FROM OPERATION ACTIVITIES:

NET PTROFIT/ LOSS BEFORE TAX134885857

Adjustments for:

Depreciation4982474

Fixed assets loss on sale/ written off701515

Fixed assets profit on sales (1144382)

Fixed assets profit on sale of land -

Miscellaneous expenses written off 16374640

Exchange fluctuation(profit)/ loss (945746)

Interest paid2582958

TRPY(income)/expenditure1441082

Deferred tax assets8930375

Tax of earlier year-

Deferred tax assets(8930375)

Interest received 3960473

Net cash flow from investing activities(27501128)

Cash flow from financing activities:

Investment in gratuity fund -

Increasing in short term borrowings(27112206)

Repayment of long term barrowings--

Intrest paid(2582958)-

Exchange fluctuation reserve (1769358)-

Net cash used in financing activities -(31464522)

Net increase in cash and cash equivalents 30226817

Opening cash and cash equivalents 255132910

Closing cash and cash equivalents 285359727

Proposed dividend(15911050)

Interest received(3960473)13051393

Operating profit(loss) before working capital changes

147937250

Adjustments for :

Trade and other receivables(9112142)

Inventories(110153352)

Other assets1304307

Trade payables/ liabilities104620487(13340700)

Cash generated from operations134596550

Provision for taxation(42700000)

Fringe benefit tax paid-

Dividend tax (2704083)

Actual payments of VRS & ASP amount, deferred in accounts -(45404083)

Net cash flow from operating activities 89192467

Cash flow from investing activities:

Purchase of fixed assets(22531226)

Sale of fixed assets-

Sale of fixed assets land-

CASH FLOW STATEMENT OR THE YEAR ENDED31ST MARCH 2011PARTICULARS31ST MARCH 2011




Adjustments for:

Depreciation5775312

Fixed assets loss on sale/ written off

Fixed assets profit on sales


Miscellaneous expenses written off

Exchange fluctuation(profit)/ loss 450746


TRPY(income)/expenditure10013655


Tax of earlier year(3300000)

Proposed dividend(15911050)

Interest received(2950167)(3755875)

Operating profit(loss) before working capital changes88989694

Adjustments for :

Trade and other receivables6782577

Inventories(7628719)

Other assets24221026

Trade payables/ liabilities191937625294260




Dividend tax (2642627)

Actual payments of VRS & ASP amount, deferred in accounts -(36642627)




Sale of fixed assets-




Net cash flow from investing activities(11564887)


Investment in gratuity fund (30000000)

Increasing in short term borrowings(80092400)


Interest paid(1029629)-

Exchange fluctuation reserve --


Net increase in cash and cash equivalents (45045589)



CASH FLOW STATEMENT OR THE YEAR ENDED31ST MARCH 2012PARTICULARS31ST MARCH 2012




Adjustments for:

Depreciation6414948

Fixed assets loss on sale/ written off

Fixed assets profit on sales (10119)


Miscellaneous expenses written off

Exchange fluctuation(profit)/ loss (4520289)


TRPY(income)/expenditure-


Tax of earlier year-

Interest receivable rent receivable &TDS (1591484)

Proposed dividend-

Interest received(13225389)(20303770)

Operating profit(loss) before working capital changes181443687

Adjustments for :

Trade and other receivables(3108680)

Inventories35720237

Other assets(109701)

Trade payables/ liabilities317620335678059




Dividend tax -

Actual payments of VRS & ASP amount, deferred in accounts (1273965)(59973965)




Sale of fixed assets136000




Net cash flow from investing activities11499773e


Investment in gratuity fund (30000000)

Increasing in short term borrowings-


Interest paid(115798)-

Exchange fluctuation reserve --


Net increase in cash and cash equivalents 137489571



Financial statement analysis of the companyPROFIT AND LOSS ACCOUNT 2010 (RS IN LAKHS)PARTICULARSAMOUNTRS

INCOME

SALES1647774737

OTHER INCOME2228830

167063047

INCREASE/ DECREASE IN STOCK53286174

TOTAL1723349221

EXPENDITURE

MATERIALS CONSUMED775383439

OTHER EXPENDITURE799799905

DEPRECIATION4982474

TOTAL1580165818

OPERATING PROFIT /LOSS143183402

LESS: INTREST AND FINANCE CHARGES8297546

PROFIT BEFORE TAXLESS: PROVISION FOR TAXATION134885857

1 CURRENT TAX48000000

2 FRINGE BENEFIT TAX-

3 DIVIDEND TAX-

4 DEFERRED TAX ASSET AND PRIOR PERIOD TAX-

PROFIT AFTER TAX93112149

PRIOR PERIOD INCOME / EXPENDITURE1441082

DEFERRED TAX ASSET-

PROPOSED DIVIDEND-

TAX OF EARLIER YEAR-

75760017

PROFIT/ LOSS BROUGHT FORWARD PREVIOUS YEAR267719129

PROFIT / LOSS CARRIED TO BALANCE SHEET 343479146

Financial statement analysis of the companyPROFIT AND LOSS ACCOUNT 2011 (RS IN LAKHS)

PARTICULARS

Amount RS

INCOME

SALES1649723232

OTHER INCOME 24378057

1674101289

INCREASE/DECREASE IN STOCK(24703198)

TOTAL1649398091

EXPENDITURE

Material consumed818064390

Other expenditure 727573371

DEPRECIATION5775312

TOTAL1551413073

OPERTATING PROFIT/LOSS 97985018

LESS:INTEREST AND FIANANCE CHARGES 5239449

PROFIT BEFORE TAX92745569

LESS:PROVISION FORTAXATION -

1. CURRENT TAX 34000000

2. FRINGE BENEFIT TAX -

3. DIVIDEND TAX 2642627

4. DEFERRED TAX ASSET AND PRIOR PERIOD TAX 4436000

PROFIT AFTER TAX 53938942

PRIOR PERIOD INCOME /EXPENDITURE10013655

DEFERRED TAX ASSET-

PROPOSE D DIVIDEND15911050

TAX OF EARLIER YEAR-

48041547

PROFIT/LOSS BROUGHT FORWARD PREVIOUS YEAR 343479146

PROFIT /LOSSES CARRIED TO BALANCE SHEET 391520693

Financial statement analysis of the company PROFIT AND LOSS ACCOUNT 2012 (RS IN LAKHS)

PARTICULARSAMOUNTRS

INCOME

SALES211843849

OTHER INCOME38044997

INCREASE/DECREASE IN STOCK-

2156483526

EXPEDITURE

MATERIAL CONSUMED280628009

OTHER EXPENDITURE419067062

DEPRECIAION6414948

1406110019

OPENING PROIF/ LOSS750373507

LESS: INTREST AND FINANCE CHARGES-

PROFIT BEFORE TAX743665035

LESS: PROVISION FOR TAXATION

1 CURRENT TAX58700000

2 FRINGE BENEFIT TAX-

3 DIVIDEND TAX-

4 DEFERRED TAX ASSET AND PRIOR PERIOD TAX-

PROFIT AFTER TAX134518037

PRIOR PERIOD INCOME /EXPENDITURE-

DEFERRED TAX ASSET8529420

PROPOSED DIVIDEND-

TAX OF EARILIER YEAR-

134518037

PROFIT / LOSS BROUGHTFORWARD PREVIOUS YEAR15911050

PROFIT /LOSS CARIED TO BALANCE SHEET134518037

KARANATAKA SOAPS AND DETERGENTS LIMITEDBALANCE SHEET AS ON 2010

PARTICULARSAMOUNTRSAMOUNTRS

SOURCES OF FUND

1. SHARE HOLDER FUND

a. Share capital-318221000

b. Reserve and surplus-343479146

2.LOAN FUND

a. Secured loan 80092400-

b. Unsecured loansTotal83506504

c. 825299050

APPLICATIONS OF FUND

1. FIXED ASSEETS

a. GROSS BLOCK327262896

LESS DEPRECIATION 241413939

b. net block 85830957

2.INVESTEMENT100

3.DEFERRED TAX ASSETS 61435214

4.CURRENT ASSET,LOANS AND ADVANCES

a. inventories517605839

b. sundry debtors172641760

c. cash and bank balance285359727

d. loans and advances 212953267

e. investment in gratuity trust500000001239560593

Less: current liabilities and provision

a. liabilities 292361773

b .provision269166068561527841

NET CURRENT ASSETS 678032752

5.a.miscellaneous expenditure-

b. profit and loss -

TOTAL825299050



SOURCES OF FUND


c. Share capital-318221000

d. Reserve and surplus-391520693

2.LOAN FUND

d. Secured loan -

e. Unsecured loansTotal8350650483506504

f. 793248197


2. FIXED ASSEETS

a. GROSS BLOCK336488843

LESS DEPRECIATION 243504890

b. net block 92983953

2.INVESTEMENT100

3.DEFERRED TAX ASSETS 62571241


f. inventories525234558

g. sundry debtors165859183

h. cash and bank balance240314138

i. loans and advances 18932241

j. investment in gratuity trust80000000120140120



b .provision289914262563447217




TOTAL793248197



SOURCES OF FUND


a Share capital318221000-

b Reserve and surplus494601955-

cexchangefluctuation reserve-812822955

2.LOAN FUND

g. Secured loan --

h. Unsecured loansTotal8350650483506504

i. 896329459


1 FIXED ASSEETS

a TANGIBLE ASSTES-96957604

2 INVESTEMENT-100

3.DEFERRED PAYMANTS 54041821


a) Inventories489514320-

b) sundry debtors149062722-

c) cash and bank balance377803712

k. loans and advances 210656969

l. investment in gratuity trust110000000



b .provision322077170




TOTAL896329459

analysis and interpretation

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