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Accounting For Managers In Videocon Industry Ltd Finance Essay

INTRODUCTION

Videocon Industries Limited, together with its subsidiaries, engages in the manufacture, assembly, marketing, and distribution of consumer electronic products and home appliances in India. It offers color televisions (TVs), home entertainment systems, and plasma display panel and liquid crystal display TVs; and home appliances, such as refrigerators, washing machines, air conditioners, small appliances, home UPS/inverters, and batteries. The company also provides a range of components, which include glass shell panels and funnels, compressors/motors, and other components of related products; and electronic goods that comprise water purifiers and microwave ovens. Videocon Industries Limited distributes its products to independent dealers and distributors primarily retail stores and chain stores in India; and provides after sales services to its customers through service centers. The company also exports its products to the Middle East, Europe, Asia, and Africa. In addition, Videocon Industries Limited involves in the exploration and production of oil and gas properties located in India, Oman, Brazil, Indonesia, Mozambique, Australia, and East Timor. It holds interests primarily in the Ravva oil and gas field located approximately 10 kilometers offshore in the Krishna Godavari basin in southern India. The company was formerly known as Videocon Leasing and Industrial Finance Limited and changed its name to Videocon Industries Limited in November 2003. Videocon Industries Limited was incorporated in 1986 and is based in Aurangabad, India.

HISTORY

Videocon Industries Ltd.

An Indian multinational company, which involved in the key sectors of Consumer Durables, Display & Color Picture Tube, CRT Glass, Oil & Gas is named as Videocon Industries Limited. The Company was incorporated in 4th September of the year 1986 as Adhigam Trading Private Limited for the business of trading in paper tubes. For manufacture the products under the Videocon, the company have 8 plants situated in Tq- Paithan, Bhalgaon, Bangalore, Hosur, Kolkata, Maheshwaram Mand and Bharuch.  

 

 The Company's Black & White and Color TV, Washing Machines released in the year 1987. In September of the year 1988, the company decided to diversify in the business of lease financing, hire purchase and investment activities. The home entertainment systems, electronic motors and air conditioners were partaken under Videocon during the year 1989-1990. The Management of the Company underwent a change in the year 1990-91 by way of transfer of equity shares to the Videocon Group. VIL had outfitted the refrigerators and coolers in the period of 1991. The name of the company was changed from Adhigam Trading Private Limited to Videocon Leasing & Industrial Finance Limited in 14th February of the year 1991. During the year 1995, the company made its footprint in glass shells for CRT segment. After a year, in 1996, VIL had diversifies into oil sector, the crude oil was the most concentrated one in the same period. The Company had formulated and released compressors and compressor motors in the year 1998. The notable thing in the company's saga was happened in the year 2000; VIL had taken over the Philips color TV plant.  

 

 Petrocon India Limited was amalgamated with the Company effect from 31st March of the year 2004; this resulted in the Company getting into oil and gas business. With merger of Petrocon, the company had become a member of the consortium that operates the Ravva Oil and Gas fields. In the same year of 2004, the company had changed its name to Videocon Industries Limited from Videocon Leasing & Industrial Finance Limited. Videocon Securities Limited was became as subsidiary of the company with effect from 15th June of the year 2004. During the year 2005, the company taken the three plants of Electrolux India and in the same year, VIL had acquired the Thomson Color Picture Tube and also taken Hyundai Electronics. Since December of the year 2005, Eagle Corporation Limited became a wholly owned subsidiary of the company. As at 21st July of the year 2006, EKL Appliances Limited (formerly: Electrolux Kelvinator Limited) amalgamated with the company. To offer international long-distance (ILD) services in India, US telecom giant Verizon had tie up with Videocon Industries in February of the year 2007. In November 2007, VIL had acquired Planet M for Rs 2 billion. Planet M is the music and entertainment retail arm of media house Bennett, Coleman & Company. In August of the year 2008, West Bengal government had invited Videocon to set up the Rs 80 billion FAB projects in the state.  

 

 To strengthen and maintain & its leadership status, the Videocon group has clearly charted out its course for the future. Aggressive development is in full swing at the R & D Centres to bring out state-of-the-art technologies including True Flat, Slim, Extra Slim, Plasma & LCDs, at the earliest. In the Oil & Gas business, having all the basic operator capabilities of a prospecting entity, the group is looking to add more explorations and production depth as also oil-bearing assets. The group will also get into gas distribution in India significantly.

BOARD OF DIRECTORS

VIDEOCON INDUSTRY

 Incorporation Year

  1986

 Chairman

  Venugopal N Dhoot

 Managing Director

   

 Company Secretary

  Vinod Kumar Bohra

 Auditor

  Khandelwal Jain & Co / Kadam & Co

 Registered Office

  14 KM Stone Aurangabad-Paithan,

  Chitegaon Paithan Taluk,

  Aurangabad.,  431105,  Maharashtra

 Telephone

  91-2431-251501/02/03/04

 Fax

  91-2431-251551

 E-mail

  secretarial@videoconmail.com

 Website

  http://www.videoconindustries.com

 Face Value (Rs)

  10

 BSE Code

  511389

 BSE Group

  A

 NSE Code

  VIDEOIND

 Bloomberg

  VCLF IN

 Reuters

  VEDI.BO

 ISIN Demat

  INE703A01011

 Market Lot

  1

 Listing

  Luxembourg,Mumbai,NSE,Singapore

 Financial Year End

  9

 Book Closure Month

  Mar

 AGM Month

  Mar

Company Balance Sheet

VIDEOCON INDUSTRY

(Rs in Crs)

   Year

Dec 09 

Dec 08 

  SOURCES OF FUNDS :

 Share Capital

96.42

96.42

  Reserves Total

484.85

376.93

  Equity Share Warrants

0

0

  Total Shareholders Funds

581.27

473.35

  Current Liabilities

587.59

507.46

 Provisions

834.79

677.32

   Total Current Liabilities

1,422.38

1,184.78

   Equity Application Money

0

0

  Secured Loans

0

0

 Unsecured Loans

0

0

   Total Debt

0

0

  Total Liabilities

2,003.65

1,658.13

   APPLICATION OF FUNDS :

  Gross Block

1,640.79

1,404.84

 Less : Accumulated Depreciation

744.59

651.54

   Less:Impairment of Assets

0

0.31

 Net Block

896.2

752.99

   Lease Adjustment

0

0

 Capital Work in Progress

79.63

109.17

  Investments

203.26

34.9

  Current Assets, Loans & Advances

 Inventories

498.74

434.91

  Sundry Debtors

64.19

45.59

 Cash and Bank

155.58

193.69

  Loans and Advances

138.05

123.76

  Total Current Assets

856.56

797.95

  Net Current Assets

-565.82

-386.83

  Miscellaneous Expenses not written off

0

0

  Deferred Tax Assets

46.8

38.91

   Deferred Tax Liability

78.8

75.79

  Net Deferred Tax

-32

-36.88

   Total Assets

2003.65

1658.13

 Contingent Liabilities

0

0

Profit & Loss Account

VIDEOCON INDUSTRY

(Rs in Crs)

   Year

Dec 09(12) 

Dec 08(12) 

  INCOME :

 Sales Turnover

5,222.42

4,471.06

   Excise Duty

90.68

143.39

  Net Sales

5,131.74

4,327.67

  Other Income

37.8

33.89

 Stock Adjustments

6.29

31.12

   Total Income

5,175.83

4,392.68

  EXPENDITURE :

 Raw Materials

2,073.25

1,785.51

  Power & Fuel Cost

158.87

159.76

 Employee Cost

432.39

306.92

  Other Manufacturing Expenses

524.8

476.36

 Selling and Administration Expenses

868.96

723.32

  Miscellaneous Expenses

87.91

73.99

 Less: Pre-operative Expenses Capitalised

0

0

   Total Expenditure

4,146.18

3,525.86

  Operating Profit

1,029.65

866.82

  Interest

1.4

1.64

  Gross Profit

1,028.25

865.18

  Depreciation

111.27

92.36

  Profit Before Tax

916.98

772.82

  Tax

265.34

222.31

 Fringe Benefit tax

1.52

8.25

  Deferred Tax

-4.88

8.18

  Reported Net Profit

655

534.08

  Extraordinary Items

-2.17

-1.91

  Adjusted Net Profit

657.17

535.99

  Adjst. below Net Profit

0

0

  P & L Balance brought forward

100.11

12.52

  Statutory Appropriations

0

0

 Appropriations

612.59

446.49

   P & L Balance carried down

142.52

100.11

  Dividend

467.62

409.77

   Preference Dividend

0

0

  Equity Dividend %

485

425

   Earnings Per Share-Unit Curr

59.69

48.17

  Earnings Per Share(Adj)-Unit Curr

   Book Value-Unit Curr

60.29

49.09

  

COMMONSIZE BALANCE SHEET

VIDEOCON INDUSTRY

(Rs in Crs)

   Year

Dec 09 

Dec 08 

%change2009

%change2008

  SOURCES OF FUNDS :

 Share Capital

96.42

96.42

4.812218

5.814984

  Reserves Total

484.85

376.93

24.19834

22.73223

  Equity Share Warrants

0

0

0

0

   Equity Application Money

0

0

0

0

  Total Shareholders Funds

581.27

473.35

29.01056

28.54722

  Secured Loans

0

0

0

0

  Current Liabilities

587.59

507.46

29.32598

30.60436

 Provisions

834.79

677.32

41.66346

40.84843

   Total Current Liabilities

1,422.38

1,184.78

70.98944

71.45278

 Unsecured Loans

0

0

0

0

   Total Debt

0

0

0

0

  Total Liabilities

2,003.65

1,658.13

100

100

   APPLICATION OF FUNDS :

0

0

  Gross Block

1,640.79

1,404.84

81.89005

84.72436

 Less : Accumulated Depreciation

744.59

651.54

37.16168

39.29366

   Less:Impairment of Assets

0

0.31

0

0.018696

 Net Block

896.2

752.99

44.72837

45.412

   Lease Adjustment

0

0

0

0

 Capital Work in Progress

79.63

109.17

3.974247

6.583923

  Investments

203.26

34.9

10.14449

2.104781

  Current Assets, Loans & Advances

0

0

 Inventories

498.74

434.91

24.89157

26.22894

  Sundry Debtors

64.19

45.59

3.203653

2.749483

 Cash and Bank

155.58

193.69

7.764829

11.68123

  Loans and Advances

138.05

123.76

6.889926

7.46383

  Total Current Assets

856.56

797.95

42.74998

48.12349

  Miscellaneous Expenses not written off

0

0

0

0

  Deferred Tax Assets

46.8

38.91

2.335737

2.346619

   Deferred Tax Liability

78.8

75.79

3.932823

4.570812

  Net Deferred Tax

-32

-36.88

-1.59709

-2.22419

   Total Assets

2003.65

1658.13

100

100

Interpretation of common size

COMPANY TOTAL SHARHOLDER FUNDS ARE INCREASING COMPARE TO 2008 its shareholder fund in 2008 28.54 and 2009 29.01 .

Company total liabilities are increasing compare to previous year.

Company fixed assets are increaing compare to previous year.

Company invetment are increasing it means has purchased more investment.

Company debtors are increasing it means company has increased it sales .

Company net sales are increasing so company has increased it stock.

Company operating profit is increasin it means company has decreaed its cost of production.

Company gross profit is increasing 19.99 and its grosss profit is in 2009 20.04

It means company has decresed its cost of production.

Company net profit is increasing because company has increased its sales .

COMMONSIZE INCOME STATEMENT

VIDEOCON INDUSTRY

(Rs in Crs)

   Year

Dec 09(12) 

Dec 08(12) 

%change2009

%change 2008

  INCOME :

 Sales Turnover

5,222.42

4,471.06

101.77

103.31

   Excise Duty

90.68

143.39

1.77

3.31

  Net Sales

5,131.74

4,327.67

100.00

100.00

  Other Income

37.8

33.89

0.74

0.78

 Stock Adjustments

6.29

31.12

0.12

0.72

   Total Income

5,175.83

4,392.68

100.86

101.50

  EXPENDITURE :

0.00

0.00

 Raw Materials

2,073.25

1,785.51

40.40

41.26

  Power & Fuel Cost

158.87

159.76

3.10

3.69

 Employee Cost

432.39

306.92

8.43

7.09

  Other Manufacturing Expenses

524.8

476.36

10.23

11.01

 Selling and Administration Expenses

868.96

723.32

16.93

16.71

  Miscellaneous Expenses

87.91

73.99

1.71

1.71

 Less: Pre-operative Expenses Capitalised

0

0

0.00

0.00

   Total Expenditure

4,146.18

3,525.86

80.79

81.47

  Operating Profit

1,029.65

866.82

20.06

20.03

  Interest

1.4

1.64

0.03

0.04

  Gross Profit

1,028.25

865.18

20.04

19.99

  Depreciation

111.27

92.36

2.17

2.13

  Profit Before Tax

916.98

772.82

17.87

17.86

  Tax

265.34

222.31

5.17

5.14

 Fringe Benefit tax

1.52

8.25

0.03

0.19

  Deferred Tax

-4.88

8.18

-0.10

0.19

  Reported Net Profit

655

534.08

12.76

12.34

  Extraordinary Items

-2.17

-1.91

-0.04

-0.04

  Adjusted Net Profit

657.17

535.99

12.81

12.39

  Adjst. below Net Profit

0

0

0.00

0.00

COMPANY BALANCE SHEET

Industry :VIDEOCON

(Rs in Crs)

   Year

Dec 09 

Dec 08 

inc/dec in amt.

inc/dec in%

  SOURCES OF FUNDS :

 Share Capital

96.42

96.42

0

0

  Reserves Total

484.85

376.93

107.92

28.63131

  Equity Share Warrants

0

0

0

   Equity Application Money

0

0

0

  Total Shareholders Funds

581.27

473.35

107.92

22.7992

  Secured Loans

0

0

0

 Unsecured Loans

0

0

0

  Current Liabilities

587.59

507.46

80.13

15.79041

 Provisions

834.79

677.32

157.47

23.24898

   Total Current Liabilities

1,422.38

1,184.78

237.6

20.05436

   Total Debt

0

0

0

  Total Liabilities

2,003.65

1,658.13

345.52

20.83793

   APPLICATION OF FUNDS :

0

  Gross Block

1,640.79

1,404.84

235.95

16.79551

 Less : Accumulated Depreciation

744.59

651.54

93.05

14.28155

   Less:Impairment of Assets

0

0.31

-0.31

-100

 Net Block

896.2

752.99

143.21

19.01884

   Lease Adjustment

0

0

0

 Capital Work in Progress

79.63

109.17

-29.54

-27.0587

  Investments

203.26

34.9

168.36

482.4069

  Current Assets, Loans & Advances

0

 Inventories

498.74

434.91

63.83

14.6766

  Sundry Debtors

64.19

45.59

18.6

40.79842

 Cash and Bank

155.58

193.69

-38.11

-19.6758

  Loans and Advances

138.05

123.76

14.29

11.54654

  Total Current Assets

856.56

797.95

58.61

7.345072

  Miscellaneous Expenses not written off

0

0

0

  Deferred Tax Assets

46.8

38.91

7.89

20.27756

   Deferred Tax Liability

78.8

75.79

3.01

3.9715

  Net Deferred Tax

-32

-36.88

4.88

-13.2321

   Total Assets

2003.65

1658.13

345.52

20.83793

0

0

Interpretation of comparative balance sheet:

Current assets are increasing 58.61(7.31%) except cash and bank are decreasing,

All current assets are increasing. Debotors are increasing by 40.79%. it means company can pay its short term liabilties easily.

Current liabilities are increasing by 237.6 but in % is 20.06 . company current liabilties are increasing compare to 2008 so company should try to reduce its current liabilities . its not satisfactory .

Fixed assets are increasing by 143.21which is 19.01 % it means company has increased it fixed assets so company can pay it long term liabilities .

Company share capital is not increasing compare to previous year company has not issued new share capital to increase its share capital. But company has increased its reserve fund by 107.92(28.63%) it means company are increasing its reserve n surplus fund for future contingency.

Total assets are increasing % is 20.83 so company has in creased it capital by 345.52. so company can use it to pay its liabilities.

Company investment are increasing it means company has increased its investment by 168.36.and company cash are decreasing it means company used its cash to purchase the new investment or pay short term liabilities.

Company stock are increasing and company sales are also incresing .it means company are incresing its stock for the sales and company debtors are also incresing due to increase in sales of company.

COMPARATIVE INCOME STATEMENT

VIDEOCON INDUSTRY

(Rs in Crs)

   Year

Dec 09(12) 

Dec 08(12) 

inc/dec in amt

inc/dec in %

  INCOME :

 Sales Turnover

5,222.42

4,471.06

751.36

16.80

   Excise Duty

90.68

143.39

-52.71

-36.76

  Net Sales

5,131.74

4,327.67

804.07

18.58

  Other Income

37.8

33.89

3.91

11.54

 Stock Adjustments

6.29

31.12

-24.83

-79.79

   Total Income

5,175.83

4,392.68

783.15

17.83

  EXPENDITURE :

0.00

 Raw Materials

2,073.25

1,785.51

287.74

16.12

  P

ower & Fuel Cost

158.87

159.76

-0.89

-0.56

 Employee Cost

432.39

306.92

125.47

40.88

  Other Manufacturing Expenses

524.8

476.36

48.44

10.17

 Selling and Administration Expenses

868.96

723.32

145.64

20.13

  Miscellaneous Expenses

87.91

73.99

13.92

18.81

 Less: Pre-operative Expenses Capitalised

0

0

0.00

   Total Expenditure

4,146.18

3,525.86

620.32

17.59

  Operating Profit

1,029.65

866.82

162.83

18.78

  Interest

1.4

1.64

-0.24

-14.63

  Gross Profit

1,028.25

865.18

163.07

18.85

  Depreciation

111.27

92.36

18.91

20.47

  Profit Before Tax

916.98

772.82

144.16

18.65

  Tax

265.34

222.31

43.03

19.36

 Fringe Benefit tax

1.52

8.25

-6.73

-81.58

  Deferred Tax

-4.88

8.18

-13.06

-159.66

  Reported Net Profit

655

534.08

120.92

22.64

  Extraordinary Items

-2.17

-1.91

-0.26

13.61

  Adjusted Net Profit

657.17

535.99

121.18

22.61

  Adjst. below Net Profit

0

0

0.00

 P & L Balance brought forward

100.11

12.52

87.59

699.60

Interpretation of comparative income statement

Company sales are incresing so company has incresed its stock.

Company income are increasing because company has decreased it expenditure compare to 2008. Because of decrease in expenidure company income are increasing.

Company gross profit are increasing . it means company has decreased its cost of production. Because of decrease in cost of production company gross profit are increasing.

Company net profit are increasing due to increase in sales

TREND ANALYSIS

2009

2008

2008

2009

net sales

5,131.74

4,327.67

100

118.5797

total income

5,175.83

4,392.68

100

117.8285

operating profit

1,029.65

866.82

100

118.7848

total expenditure

4,146.18

3,525.86

100

117.5934

gross profit

1,028.25

865.18

100

118.8481

profit before tax

916.98

772.82

100

118.6538

net profit

655

534.08

100

122.6408

total shareholder fund

581.27

473.35

100

122.7992

total current liabilities

1,422.38

1,184.78

100

120.0544

net block

896.2

752.99

100

119.0188

Investment

203.26

34.9

100

582.4069

total current assets

856.56

797.95

100

107.3451

Inventories

498.74

434.91 100 114.67

Interpretation of Trend Analysis-

Net sales are increasing compare to 2008 but stock is also increasing

By 14.67 it means company has increased its sales and stock.

Total shareholder fund are increasing compare to 2008 by 22.64 . it means company assets are increasing and liabilties are decreasing . because of increase in assets company shareholder fund are increasing .

Company net profit is increasing compare to 2008 . its profit is increasing by 121% because company sales are increasing due to increase in sales company profits are also increasing.

Company total income are increasing due to increase in sales but company total expenditure are also incresing compare to base year.

Company gross profit are increasing compare to 2008. Because company cost of good sold are decreasing .

Company current assests are incresing and current liabilties are also increasing it means company has increased it current assets but company current liabiltes are also increasing so company should decrese it current liabilities.

Company stock are increasing compare to 2008 it means company has increased it inventory and company sales are also increasing due to increase in sales company has increased it inventory.

Company fixed assets are also increasing it measn company can easily pay its long term liabilties.

RATIO ANALYSIS

LIQUIDITY RATIO

2009

2008

CURRENT RATIO

0.602202

0.673501

QUICK RATIO

0.15451

0.201962

ABSOLUT LIQUID

0.10938

0.163482

LEVERAGE RATIO

PROPRIETORY RATIO

29.01056

28.54722

FIXED ASSETS TO NET

WORTH

1.541796

1.590768

ACTIVITY RATIO OR

EFFICIENCY RATIO

INVENTORY TURNOVER

8.23

7.961394

RATIO

DEBTORS TURNOVER

RATIO

13.98294

94.92586

DEBTORS COLLECTION

PERIOD

26.10873

3.845343

PROFITABILITY RATIO

GROSS PROFIT RATIO

20.03706

19.99182

NET PROFIT RATIO

12.7637

12.34105

OPERATING PROFIT

RATIO

20.06434

20.02972

RETURN ON INV.

112.6843

112.8298

RETURN ON EQUITY

679.3196

553.91

current ratio=current asset/currenliabilities

The rule of thumb for current ratio is 2:1 it means that current liabilties should be half of

Current asset .but here the current ratio in 2009 is .60 and 2008 is .67 it means

Company current asets is .60 times to current liabilties which is not satisfactory for the company. According to creditors high current ratio is good for them but according to shareholders high ratio is not good for them.

Quick ratio=current assets-stock-prepaid expense/current liabilities

The rule of thumb for quick ratio is 1:1 it means quick assets should be equal to quick liabilties. but here the quick ratio is .15 in 2009 and 2008 .20 which is very less . it means quick assets is .15 and .20 times of liabilties which is not satisfactory and company will not be able to pay its short term liabilties.

absolute liquid ratio=cash+marketable securities/current liabilitie

It shows relation between absolute liquid assets between liquid liabilities this ratio shows company company quick payment financial value.the rule of thumb for absolute liquid ratio is .50:1 .it means quick assets should be half of current liabilities but here the ratio is .10 and .16 which is very less it means company liquidity position is not satisfactory.

proprietry ratio=shareholders funds/total assets*100

It shows relation between shareholder fund and total assets how much total assets have been financed from shareholder fund . from this ratio creditors can come to know debt % of company . if this ratio is high then it will be good for creditors they will be more sacure.but here the ratio is in 2009 29% and in 2008 28% which is not satisfactory it means company has financed it assets from outside liabilities.

fixed asset to net worth =fixed asset after depreciation/net worth

How many fixed assets which we have financed from shareholder fund .here the ratio is 1.54 and 1.59 which is good for the compay

inventory turnover ratio=cost of goods sold/average inventory

Inventory turnover ratio shows relation between stock and sales if company stock ratio is lhigh and company sales are high then company position is good .

High stock ratio is good for company. Here the stock ratio is 8.23 and 7.96 times it means the stock of the cash are converted into year which is good for the firm.

debtors turn over ratio=net credit sales/average debtor

It is also called receivables turnover ratio. It shows relation between sales receivables thatwe are able to receive our amount from debtors very quicklu or not. Here the ratio is 13.98 and 94.92 it means in 2009 company is able to receive its money very quickly but in 2008 its not able to receive its money quickly.

Debtors collection period=365/debtors turnover ratio

This ratio shows in how many days we are able to receive it money from debtors.Here the ratio is 26 days and 3 days it means that in 2009 company able to receive its money in 26 days and 2008 is 3 days .

Gross profit ratio= gross profit /sales *100

In this ratio high ratio is good but here the ratio is 20.04% and 19.99% which is not satisfactorybecause the portion of profit in net sales is only 20.04 and 19.99% it means that the firm is not earning much profit from its sales. So company should should try to increase its profit and reduce their cost of production.

Net profit ratio=net profit / sales*100

high ratio is better and it measures ralation between net profit and net sales but here the ratio is 12.76 and 12.34 which is very less and it is not satisfactory for the company so company should reduce their cost of production to increase their profit.

Operating ratio=cost of sales +operating exp./sales*100

This ratio shows relation between total operating exp. and net sales high ratio is not good for company because high ratio shows high operating exp.here the ratio is 20.06 and 20.02 which is good for company.

Return on investment= return on investment=net profit after interest and taxes/shareholders fund*100

This ratio developes the relation between the profit and investment and high ratio is considered good but here the ratio is 122.68 and 112.84 it means company

Profit is good and satisfactory.

Return on equity capital=net profit after tax-preference dividend/equity share capital*100

It shows relation between net profit and equity capital here the ratio is

679 and 553 which is satisfactory for company.

SCHEDULE OF CHANGES IN WORKING CAPITAL

CURRENT ASSETS

2008

2009

INCREASE

DECREASE

 Inventories

498.74

434.91

63.83

  Sundry Debtors

64.19

45.59

18.6

 Cash and Bank

155.58

193.69

38.11

  Loans and Advances

138.05

123.76

14.29

  Total Current Assets

856.56

797.95

CURRENT LIABILITIES

  Current Liabilities

587.59

507.46

80.13

 Provisions

834.79

677.32

157.47

   Total Current Liabilities

1,422.38

1,184.78

WORKING CAPITAL

-565.82

-386.83

NET INCREASE IN WORKING CAPITAL

178.99

275.71

275.71

FUND FROM OPERATIONS

net profit for the year ended

655

add- non operating exp.

Depreciation

111.27

Dividend

467.62

transfer to general reserve

107.92

provison for taxation

834.79

1521.6

fund from operation

2176.6

FUND FLOW STATEMENT

sources of funds

fund from operations

2176.6

decrease in capital work in progress

29.54

2206.14

application of funds

increase in working cap.

178.99

purchase of fixed assets

143.21

payment of tax

1247.96

payment of dividend

467.62

purchase of investment

168.36

2206.14

CASH FLOW STATEMENT

cash flow from operating activity

2009

profit paid during the year

655

add-non operating exp.

transfer to general res.

107.92

Depreciation

111.27

Interest

1.4

Tax

265.34

net profit after adjustment before

working capital changes

1140.93

adjustment for changes

add-

current liabilities

80.13

Provision

157.47

less-

increase in inventory

63.83

Debtors

18.6

loan n advances

14.29

net cash flow from operating activity

1347.59

cash flow from investing activity

less-

purchase of fixed assets

-143.21

increase in investment

1710.69

net cash flow from investing activity

-1853.9

cash flow from financing activity

issue of share

0

dividend paid

467.62

net cash flow from financing activity

467.62

net cash flow

-38.69

op. bal. of cash

193.69

closing bal. of cash

155.58

COST SHEET

direct material

2,073.25

1,785.51

prime cost

2,073.25

1,785.51

add-

factory overhead

power n fuel

158.87

159.76

employee cost

432.39

306.92

  Other Manufacturing Expenses

524.8

476.36

dep.

111.27

92.36

  Tax

265.34

222.31

factory cost

3,565.92

3,043.22

add-

 Selling and Administration Expenses

868.96

723.32

  Miscellaneous Expenses

87.91

73.99

cost of goods sold

4,522.79

3,840.53

Profit

608.95

487.14

  Net Sales

5,131.74

4,327.67

RESEARCH METHODOLOGY

Research Methodology is considered as the nerve of the project. Without a proper organized research plan, it is impossible to complete the project and reach to any conclusion. The Research is based on the various information collected from internet, (Google search engine).

Therefore, Research Methodology is the way to systematically solve the research problem. Research Methodology not only talks about the methods but also logic behind the methods used in the context of a research study and it explain why a particular method has been used in preference of the other methods.

As these statements have been downloaded from the internet these may not be considered to be true. But my entire analysis on the basis of these two is true and is reliable.

final interpretation

Company sales are incresing so company has incresed its stock.Company income are increasing because company has decreased it expenditure compare to 2008 because of decrease in expenidure, company income are increasing.

Company gross profit are increasing . it means company has decreased its cost of production. Because of decrease in cost of production company gross profit are increasing.

Company net profit are increasing due to increase in sales . Company total liabilities are increasing compare to previous year.Company fixed assets are increaing compare to previous year.Company invetment are increasing it means has purchased more investment.Company debtors are increasing it means company has increased it sales .Company net sales are increasing so company has increased it stock .

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