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Analysis of Shreyans Industries Ltd.

Balance Sheet ------------------- in Rs. Cr. -------------------


Mar '05 Mar '06 Mar '07 Mar '08 Mar '09
Sources Of Funds
Total Share Capital 11.07 11.07 11.07 11.07 11.07
Equity Share Capital 11.07 11.07 11.07 11.07 11.07
Share Application Money 0 0 0 1.64 8.94
Preference Share Capital 0 0 0 0 0
Reserves -8.79 -0.84 5.79 17.84 35.96
Revaluation Reserves 0 0 0 0 0
Networth 2.28 10.23 16.86 30.55 55.97
Secured Loans 80.07 69.42 67.63 71.5 61.77
Unsecured Loans 3.82 2.71 2.62 2.55 3.01
Total Debt 83.89 72.13 70.25 74.05 64.78
Total Liabilities 86.17 82.36 87.11 104.6 120.75
Application Of Funds
Gross Block 117.42 119.75 127.48 124.31 169.82
Less: Accum. Depreciation 51.62 56.57 62.18 62.43 67.21
Net Block 65.8 63.18 65.3 61.88 102.61
Capital Work in Progress 1.98 2.65 9.63 21.95 4.26
Investments 0.55 0.2 0.01 0.01 2.97
Inventories 11.47 9.12 15.28 18.27 21.16
Sundry Debtors 28.43 26.23 24.51 28.14 20.41
Cash and Bank Balance 1.39 2.31 1.35 3.23 1.59
Total Current Assets 41.29 37.66 41.14 49.64 43.16
Loans and Advances 8.72 10.55 20.28 14.54 22.24
Fixed Deposits 0.8 0.63 0.67 1.98 0.8
Total CA, Loans & Advances 50.81 48.84 62.09 66.16 66.2
Deffered Credit 0 0 0 0 0
Current Liabilities 33.06 32.2 49.4 46.61 48.97
Provisions 0.03 0.32 1.2 0.45 6.33
Total CL & Provisions 33.09 32.52 50.6 47.06 55.3
Net Current Assets 17.72 16.32 11.49 19.1 10.9
Miscellaneous Expenses 0.15 0 0.7 1.68 0
Total Assets 86.2 82.35 87.13 104.62 120.74
Contingent Liabilities 3.01 9.46 10.14 7.17 1.1
Book Value (Rs) 2.07 9.24 15.23 26.11 42.47
Analysis of Shreyans Industries Ltd.
Profit & Loss account ------------------- in Rs. Cr. -------------------
Mar '05 Mar '06 Mar '07 Mar '08 Mar '09
Income
Sales Turnover 158.32 193.31 214.44 238.69 269.61
Excise Duty 14.53 14.49 16.08 20.11 11.12
Net Sales 143.79 178.82 198.36 218.58 258.49
Other Income -0.11 -0.3 0.4 -1.92 -0.65
Stock Adjustments -0.88 -0.83 0.82 0.89 -0.87
Total Income 142.8 177.69 199.58 217.55 256.97
Expenditure
Raw Materials 70.7 85.2 96.72 102.43 112.73
Power & Fuel Cost 33.74 40.15 47.6 51.49 63.05
Employee Cost 13.88 13.87 15.19 18.02 19.27
Other Manufacturing Expenses 5.46 5.95 7.21 7.61 9.26
Selling and Admin Expenses 9.39 7.48 6.75 6.26 11.66
Miscellaneous Expenses 1.01 1.17 1.18 1.07 1.31
Preoperative Exp Capitalised 0 0 0 0 0
Total Expenses 134.18 153.82 174.65 186.88 217.28
Operating Profit 8.73 24.17 24.53 32.59 40.34
PBDIT 8.62 23.87 24.93 30.67 39.69
Interest 9.21 8.33 7.48 7.29 6.67
PBDT -0.59 15.54 17.45 23.38 33.02
Depreciation 5.21 5.65 5.84 5.89 6.88
Other Written Off 0.15 0.15 0 0 0
Profit Before Tax -5.95 9.74 11.61 17.49 26.14
Extra-ordinary items 1.3 1.02 0.26 0.47 0.21
PBT (Post Extra-ord Items) -4.65 10.76 11.87 17.96 26.35
Tax 0.02 2.83 5.26 5.9 7.83
Reported Net Profit -4.67 7.95 6.63 12.05 18.12
Total Value Addition 63.48 68.63 77.92 84.45 104.55
Preference Dividend 0 0 0 0 0
Equity Dividend 0 0 0 0 0
Corporate Dividend Tax 0 0 0 0 0
Per share data (annualised)
Shares in issue (lakhs) 110.75 110.75 110.75 110.75 110.75
Earning Per Share (Rs) -4.22 7.18 5.98 10.88 16.36
Equity Dividend (%) 0 0 0 0 0
Book Value (Rs) 2.07 9.24 15.23 26.11 42.47
Analysis of Shreyans Industries Ltd.
Ratio Analysis

Liquidity Ratios
Current Ratio
Quick Ratio
Solvency Ratios
Debt-Equity Ratio
Liabilities To Equity Ratio
Interest Coverage Ratio
Debt-Asset Ratio
Efficiency Ratios
Inventory Turnover
Debtor Turnover
Average Collection Period
Fixed Assets Turnover
Total Assets Turnover
Profitability Ratios
Gross Profit Margin
Net Profit Margin
Return on Assets
Basic Earning Power
Return on Equity
dustries Ltd.
Formulae Mar '05 Mar '06 Mar '07 Mar '08

Current Assets/Current Liabilities 1.535509 1.501845 1.227075 1.405865


(Current Assets - Inventories)/Current Liabilities 1.188879 1.221402 0.925099 1.017637

Debt/Equity 36.79386 7.050831 4.166667 2.423895


Total Liabilities/Equity 51.30702 10.22972 7.167853 3.964321
PBIT/Interest Expense 0.353963 2.169268 2.552139 3.399177
Debt/Assets 1.651053 1.476863 1.131422 1.119256

COGS/Avg Inventory 15.02186 14.24836 11.08733


Net Sales/Avg. Sundry Debtors 6.542993 7.818683 8.303134
365/Debtor Turnover 55.78487 46.68305 43.95931
Net Sales/Avg Net Fixed Assets 2.676746 2.818414 2.75359
Net Sales/ Avg Total Assets 2.121863 2.340807 2.279844

Gross Profit/ Net Sales 0.060714 0.135164 0.123664 0.149099


Net Profit/ Net Sales -0.032478 0.044458 0.033424 0.055129
PAT/Avg Total Assets 0.094334 0.078239 0.125684
PBIT/Avg Total Assets 0.214417 0.225277 0.258462
Equity Earnings/Avg Equity 1.270983 0.48948 0.508332
Mar '09

1.197107
0.814467

1.157406
2.145435
4.91904
0.97855

11.06518
10.6484
34.27744
2.71096
2.294018

0.15606
0.070099
0.160809
0.291179
0.418863
Comments
Liquidity Ratios Solvency Ratios
1.8 60

1.6

1.4 50
Solvency Ratios
1.2
Debt-Equity Ratio
Liabilities To Equity
1 40 Ratio
Interest Coverage Ratio
0.8
Debt-Asset Ratio

0.6
30
Liquidity Ratios
0.4
Current Ratio
0.2
Quick Ratio 20
0
Mar '05 Mar '06 Mar '07 Mar '08 Mar '09
Gross Profit Margin=Gross Profit/ Net Sales
Net Profit Margin=Net Profit/ Net Sales
10
Decreasing Current Ratio is indicating
that the company's ability to meet its
current liabilities with current assets is
decreasing. This is a bad news for its
short-term creditors. 0
Decreasing Quick Ratio is indicating Mar '05 Mar '06 Mar '07 Mar '08 Mar '09
that company's ability to meet its current
liabilities with more liquid assets is also
decreasing which is also a bad news. Decreasing Debt-Equity Ratio is
indicating that riskiness for creditors is
decreasing. This is a good news for the
company.
Decreasing Liability to Equity Ratio is a
good indicator for the company as it
supports decreasing debt to equity ratio.
Increasing Interest coverageRatio is
indicating that the company is becoming
increasingly secure for the creditors who
will receive the interest charges in time.
So, the company has sufficient income to
cover its interest requirements as of 2009.
Decreasing Debt Asset Ratio is
indicating that the support of borrowed
funds for firm's asset is decreasing. This is
good for the company as the company's
dependence on borrowings is decreasing.
good for the company as the company's
dependence on borrowings is decreasing.

Conclusion :
Thus, after analysing the company's financial reports through various ratios , it can be safely said that the ability of
short-term obligations when they fall due is decreasing, firm's long-term solvency is improving, its asset managem
efficient and the performance of the company in terms of operating successis is improving steadily through the yea
company is becoming more efficient.
Efficiency Ratios Profitability Ratios
60 1.4

1.2
50

1 Gross Profit Margin


Efficiency Ratios Net Profit Margin
40
Inventory Turnover Return on Assets
Debtor Turnover 0.8 Basic Earning Power
Average Collection Return on Equity
30 Period
Fixed Assets Turnover 0.6
Total Assets Turnover

20 0.4

0.2
10

0
0 Mar Mar Mar Mar Mar
Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

o is
ors is Decreasing Inventory Turnover is indicating that Increased Gross Profit Margin over the years is
or the the efficiency of inventory management of firm is indicating the increased efficiency of production as well
decreasing which is bad for the company. as pricing of the company. This is good for the company.
Ratio is a Increasing Debtor Turnover is a good indicator of Increased Net Profit Margin over the years is
s it the company's ability to collect credit from the indicating the increased efficiency of production,
ty ratio. customers in a prompt manner. So, company is administration, selling, financing, pricing and tax
Ratio is having a better management of receivables. management of the company. This is good for the
coming Decreasing Avg Collection period is good for the company as it indicates the cushion available to the
ors who company as it will now have less Days Sales company.
n time. Outstanding which have been reduced from 55 in Return on Assets has also increased over the years
come to 2005 to 34 in 2009. which indicates that the overall profitability of the firm
of 2009. Fixed Asset Turnover has remained constant has increased and is good for the company.
is around 2.7 indicating that the firm has high degree of Basic Earning Power has also increased sharply over
rowed efficiency in asset utilization i.e. sales per Rupee of the years indicating an improvement in the operating
g. This is investment is around Rs. 2.7. performance of the company.
pany's A constant Total Asset Turnover of around 2.3 is Return on Equity has fallen sharply over the years
creasing. indicating that the firm is utilizing its overall assets due to a sharp increase in equity but a small increase in
very efficiently. equity earnings over the years. So, this decrease can't be
said to be bad. ROE has been higher than ROA
throughout the years so earnings per rupee of
shareholder's funds has been more than that of assets
which is good.
pany's A constant Total Asset Turnover of around 2.3 is Return on Equity has fallen sharply over the years
creasing. indicating that the firm is utilizing its overall assets due to a sharp increase in equity but a small increase in
very efficiently. equity earnings over the years. So, this decrease can't be
said to be bad. ROE has been higher than ROA
throughout the years so earnings per rupee of
shareholder's funds has been more than that of assets
which is good.

os , it can be safely said that the ability of the firm to meet its
solvency is improving, its asset management is also becoming
essis is improving steadily through the years. Thus overall, the
Mar Mar

er the years is
production as well
d for the company.
the years is
production,
cing and tax
good for the
vailable to the

sed over the years


tability of the firm
mpany.
reased sharply over
in the operating

ply over the years


a small increase in
is decrease can't be
than ROA
rupee of
han that of assets
ply over the years
a small increase in
is decrease can't be
than ROA
rupee of
han that of assets

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