Course: Accounting and Finance for Decision making

Faculty: Dr.Sudhindra Bhat

Assignment 2

VIKAS.C.RAI
ROLL NO. 14D68

FINANCIAL STATEMENT ANALYSIS ASSIGNMENT

PROFITABILITY RATIOS
NET INCOME
TOTAL ASSETS
SALES
ACCOUNTS
RECEIVABLE
INTEREST EXPENSE
CURRENT ASSETS
CURRENT LIABILITIES
SHARE CAPITAL
RESERVE AND SURPLUS
OPENING STOCK
OF FINISHED GOODS
PURCHASE
CLOSING STOCK
OF FINISHED GOODS
FIXED ASSET
OF CURRENT YEAR
FIXED ASSET
OF PREVIOUS YEAR
NON-CURRENT LIABILITIES
CURRENT LIABILITIES
PROFIT BEFORE TAX
INTEREST COST

2013

2014

1,975,000
3,119.27
7,169

1,863,000
3,564.70
7,962

302.4
51.74
3,364.60
3,364.60
47.51
850.77

342
22.2
3,631.58
3,631.58
47.51
1,113.32

191.57
4,947.28

163.91
5,499.36

163.91

162.38

1047.57

1173.79

1078.08
636.05
1,274.88
163.58

1047.57
620.26
1,529.16
352.54

TVS MOTORS
PARTICULARS

2013
(Rs. In
Crores)

A.

1,975,000
3,119.27
63316.10%

1,863,000
3,564.70
52262.46%

-112000 -5.67%
445.43 14.28%
110.54

SALES
TOTAL ASSETS
ASSET TURNOVER

7,169
3119.27
229.84%

7,962
3564.7
223.35%

792.6 11.06%
445.43 14.28%
-0.06

NET INCOME
SALES
RETURN ON SALES

1975000
7169.25
27548.21%

1863000
7961.85
23399.08%

-112000 -5.67%
792.6 11.06%
41.49

TOTAL ASSETS
STOCKHOLDER'S EQUITY (W.N. 1)
ASSET-TO-EQUITY

3119.27
8983
0.35

3564.7
11608
0.31

445.43 14.28%
2625 29.22%
-0.04

NET INCOME
STOCKHOLDER'S EQUITY (W.N. 1)
RETURN ON EQUITY

1975000
8983
21985.97%

1863000
11608
16049.28%

-112000 -5.67%
2625 29.22%
59.37

7,169
302.4
23.71

7,962
342
23.28

792.60 11.06%
39.60 13.10%
-0.43

326.11
365.28
163.0539187 182.6401316
2.00
2.00

39.17 12.01%
19.59 12.01%
0.00

COGS (W.N. 2)
AVERAGE INVENTORY (W.N. 3)
INVENTORY TURNOVER RATE
SALES
AVERAGE FIXED ASSETS (W.N. 4)
FIXED ASSET TURNOVER

7,169
3584.63
2.00

7,962
3980.93
2.00

792.60 11.06%
396.30 11.06%
0.00

TOTAL LIABILITIES (W.N. 5)

TOTAL ASSETS
DEBT RATIO

3,135.60
3119.27
1.01

3,564.70
3564.7
1.00

429.10 13.68%
445.43 14.28%
-0.01

TOTAL LIABILITIES (W.N. 5)

STOCKHOLDER'S EQUITY (W.N. 1)
DEBT-TO-EQUITY RATIO

3,135.60
8983
0.35

3,564.70
11608
0.31

429.10 13.68%
2625.00 29.22%
-0.04

302.46

376.66

51.74
5.85

22.2
16.97

74.20 24.53%
-29.54 57.09%
11.12

3,364.60
3,364.60
1.00

3,631.58
3,631.58
1.00

LEVERAGE RATIOS

EARNINGS BEFORE INTEREST AND

TAXES (W.N. 6)
INTEREST EXPENSE
TIMES INTEREST EARNED
D.

111

EFFICIENCY RATIOS
SALES
ACCOUNTS RECEIVABLE
A/R TURNOVER RATE

C.

(Rs. In
Crores)

PROFITABILITY RATIOS
NET INCOME
TOTAL ASSETS
RETURN ON ASSETS

B.

DIFFERENCE
2014 DIFFERENCE %

LIQUIDITY RATIOS
CURRENT ASSETS
CURRENT LIABILITIES
CURRENT RATIO

266.98
266.98
0.00

7.93%
7.93%

113

CURRENT ASSETS
CURRENT LIABILITIES
WORKING CAPITAL

3,364.60
3,364.60
0.00

3,631.58
3,631.58
0.00

266.98
266.98
0.00

7.93%
7.93%

47.51
850.77
898.28

47.51
1,113.32
1160.83

0.00
262.55
262.55

0.00
0.31

2 OPENING STOCK OF FINISHED GOODS

PURCHASE
(LESS)CLOSING STOCK OF FINISHED
GOODS
COGS

191.57
4,947.28

163.91
5,499.36

-27.66
-1.53

-0.14
-0.01

163.91
4,974.94

162.38
5,500.89

3 OPENING STOCK OF FINISHED GOODS

CLOSING STOCK OF FINISHED GOODS
AVERAGE INVENTORY

191.57
163.91
177.74

163.91
162.38
163.145

-27.66
-1.53
-14.60

-0.14
-0.01
-0.08

4 FIXED ASSET OF CURRENT YEAR

FIXED ASSET OF PREVIOUS YEAR
AVERAGE FIXED ASSET

1047.57
1078.08
1062.83

1173.79
1047.57
1110.68

126.22
-30.51
47.86

0.12
-0.03
0.05

5 NON-CURRENT LIABILITIES
CURRENT LIABILITIES
TOTAL LIABILITIES

636.05
1,274.88
1,910.93

620.26
1,529.16
2149.42

-15.79
254.28
238.49

-0.02
0.20
0.12

163.58
7
170.52

352.54
8
360.26

WORKING NOTE:
1 SHARE CAPITAL
RESERVE AND SURPLUS
STOCKHOLDER'S FUND

6 PROFIT BEFORE TAX

(add) INTEREST COST
EARNINGS BEFORE INTEREST AND TAX

#REF!
#REF!
525.95
0.11

A. Profitability Ratios:
1. Return on Assets (net income/total assets)
2. Asset Turnover (sales/total assets)
3. Return on Sales, (aka profit margin percent) (net income/sales)
4. Assets-to-Equity (total assets/stockholders equity)
5. Return on Equity (net income/stockholders equity)
B. Efficiency Ratios:
1. A/R Turnover Rate (sales/accounts receivable)
2. Inventory Turnover Rate (COGS/average inventory)
3. Fixed Asset Turnover (sales/average fixed assets)
C. Leverage Ratios:
1. Debt Ratio (total liabilities/total assets)
2. Debt-to-Equity Ratio (total liabilities/stockholders equity)
3. Times Interest Earned (earnings before interest and taxes/interest expense)
D. Liquidity Ratios:
1. Current Ratio (current assets/current liabilities)
2. Working Capital (current assets current liabilities)

Explanation of the above data (comparisons of 2013 &2014 ratios)

Despite a challenging macroeconomic environment and intense
competitive landscape, the Company sold 19.9 lakh two wheelers in line
with last year. Motorcycle sales increased by 4% and scooters by 6%.
Moped sales marginally declined mainly due to poor monsoon and decline
of two wheeler sales in Tamilnadu. Three-wheeler sales of the Company

110

increased by 63% in 2013-14. Sale of spare parts grew by 18%.

TVS Jupiter, the newly launched scooter bagged seven awards acclaiming
its superiority over competitive products.
The Company''s total revenue including other income increased to
Rs.7,992.06 Cr in the current year from Rs.7,193.09 Cr in the previous
year. Profit before tax and exceptional items (PBT) for the year
2013-14 significantly increased to Rs.351.26 Cr compared to Rs.254.42
Cr of the previous year. Similarly Profit after tax (PAT) for the year
2013-14 increased to Rs.261.63 Cr from Rs.116.02 Cr of the previous
year, after taking into account the extra-ordinary and exceptional
items.
BUSINESS OUTLOOK AND OVERVIEW
Low growth of GDP is expected to continue. Uncertain monsoon is an
added concern. Inflation and consumer sentiments do not induce great
confidence either. Added to this, geo-political uncertainty in parts of
Asia and Europe may affect commodity prices. Consequently the Company
expects modest growth for the two wheeler industry during the year
2014-15.