A/c project

TOPIC:- Trend Analysis

SUBJECT :- Accounts For Managers

PRESENTED BY :1) ANKIT SHARMA

Introduction Of Company

Bannari Amman Sugars Ltd Company was incorporated on 1st

December in the year 1983 in TamilNadu.

Bannari Amman Sugars Limited (BASL) is integrated sugar manufacturing company. The companys principal business activities include production of sugar, alcohol, liquor, granite, and cotton yarn.

Company started production of sugar with an initial capacity of

1250 tones of cane crush/day (TCD) which has increased to 14,000 TCD.

Introduction (contd)

BASL is also engaged in generation of power through its wind turbines with a generating capacity of 29 MW in the areas like Poolavadi and Gudimangalam near Coimbatore .

Sugar- Company operates in

two units each located in

Tamil Nadu and Karnataka. These plants have received ISO 9001:2000 certification for its quality management.

Total Income - Rs. 8315.851 Million ( year ending Mar 2011) Net Profit - Rs. 530.614 Million ( year ending Mar 2011)

Introduction (contd)

The

company

has

clients

base

in

countries

like USA, Germany, Belgium, Italy, Australia, Middle East and the Far East.

Bannari Amman Sugars Limited provides you an indepth strategic analysis of the companys businesses and operations and enables you to understand your

partners, customers and competitors better.

What is Trend Percentage Analysis?

The trend analysis is a technique of studying several financial statements over a series of year .

In this analysis the trend percentages are calculated

for each item by taking the figure of that item for the
base year taken as 100.

Generally the first year is taken as a base year. Trend analysis is also named as INDEX ANALYSIS AND HORIZONTAL ANALYSIS.

Objectives Of Trend Analysis

Indicating profitability of an enterprise. Showing the operational efficiency of the business.

Indicating the actual and prospective performance of the business.

Assisting in decision making regarding future

line of action.

Advantages Of Trend Analysis

Progress of business over a period can be assesses

by computing trend index percentages of sales, cost of sales, production, profit, capital employed etc.
A comparative

figure of trend analysis can show the

strength and weaknesses of the business.

Conclusions

drawn on the basis of trend analysis will

be more scientific and accurate.

Limitations Of Trend Analysis

Practically , selection of the base year for trend percentage analysis is very difficult.

Since the data used in analysis is influenced by inflationary factors, it becomes difficult to segregate inflationary growth and real growth

by trend analysis.

Balance Sheet
Particulars Sales Turnover Other Income Total Income Total Expenses Operating Profit Gross Profit Interest Mar'11 826.76 4.82 831.59 682.51 144.25 149.07 22.16 Mar '10 884.44 2.53 886.97 643.59 240.85 243.38 5.3 Mar '09 711.06 1.04 712.1 536.54 174.52 175.56 9.58 Mar '08 552.29 1.39 553.68 472.39 79.9 81.29 7.31 Mar '07 792.87 1.83 794.7 641.05 151.82 153.65 4.17

PBDT
Depreciation PBT Tax Net Profit Earnings Per Share Equity

126.92
70.83 56.09 3.03 53.06 46.38 11.44

238.07
38.34 199.73 56.1 143.63 125.56 11.44

165.98
34.08 131.9 12.07 119.83 104.75 11.44

73.98
34.82 39.16 -3.18 42.34 37.01 11.44

149.49
36.43 113.06 18.29 94.77 99.33 9.54 10

Reserves
Face Value

712.73
10

673.01
10

542.7
10

438.25
10

Calculation Of Trend Percentage Analysis

Trend Percentage Analysis
Net sales=(Current year sales/base year)*100 Profit Before Tax =(PBT/Base Year)*100 Earnings Per Share=(current year EPS/Base Year)*100 Mar'11 104 50 47 Mar '10 112 177 126 Mar '09 90 117 105 Mar '08 70 35 37 Mar '07 100 100 100

Equity=(Current year Reserve/Base Year)*100

712.73

673.01

542.7

438.25

100

Comparison of Ratios
Gross Profit Ratio= (Gross Profit / Sales) * 100 Net Profit Ratio = (Net Profit/Sales)*100 18.03% 27.51% 24.68% 14.71% 19.37%

6.41%

16.23%

16.85%

7.66%

11.95%

Interpretation

In the year 2008 there is a 30% decrease in the net sales,

but it increases by 10% in the year 2009. In year 2010

there is found an increase of 10% in net sales.

The reason for decrease in net sales may be due to low production, competition in the market, customers choice, change in suppliers strategy etc.

PBT has decreased in the year 2008 and increased in the year 2010. The reason for decrease in PBT is due to increase in indirect expense like transportation, fuel exp,

petrol exp etc.

Interpretation (contd)

In the year 2010 EPS increases and EPS decreases in year

2008. When EPS of the company increases it shows that,

there is better financial position of the company.

Gross

profit

ratio

reflects

the

efficiency

with

which

management produce each unit of product. Higher gross profit ratio shows that the firm is able to produce at relatively lower cost. As per table above see that GP Ratio has come down to 18.03%.

Net profit ratio reflects the firms ability to earn net profit on each rupee of sales. It measures the overall efficiency of production, administration, selling etc. NP of the company has

also decreased to 6.42%.

Thank you ..