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Financial analysis
Financial analysis
Financial analysis
Financial analysis
Financial analysis
Financial analysis
Financial analysis
Financial analysis
Financial analysis
Financial analysis
Financial analysis
Financial analysis
Financial analysis
Financial analysis
Financial analysis
Financial analysis
Financial analysis
Financial analysis
Financial analysis
Financial analysis
Financial analysis
Financial analysis
Financial analysis
Financial analysis
Financial analysis
Financial analysis
Financial analysis
Financial analysis
Financial analysis
Financial analysis
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Financial analysis

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  • 1. Industry Overview AIS is India’s largest Integrated Glass Company. Having a market share of more than 75% AIS supplies high quality automotive glass to the entire passenger car industry in India Continued to maintain leadership position for almost 20 years In 1987,started operations with manufacturing toughened glass for automobiles Today it has Four Plants and Three Assembly Units
  • 2. Company Profile WE is the first and only specialist in automotive glass repair and replacement Promoted by Labroo’s through their investment company M/S Allied Fin cap Services Pvt Ltd, and Japanese Glass Company - Auto glass Company Ltd Windshield Experts has a total of 21 retail outlets including those in Delhi, NCR region, Punjab, Chennai, Mumbai, Bangalore, Ahmadabad, Jaipur, In dore, Surat, and Pune At Windshield Experts we make it our business to keep at par with the latest technology available in the international market so as to provide our customers with a service well appreciated Windshield Experts has got into alliance with all major insurance companies in order to manage all their automotive glass claims more
  • 3. Product Range• Laminated Windshields• Defogger glass• Solar Control Glass• Rain sensor windshield• Heated windshield
  • 4. Their Network Place
  • 5. Objective of the Study• Detailed analysis of the financial statements that is the balance sheet and the income statement of Shield Auto glass Ltd• The understanding and assessment of financial ratios based on the statements of the company• Recognize the position of the company through those ratios and data available
  • 6. Objective of the Study• To find out the profitability and viability of the organisation• To study and find out the market standing of the company• To know how company is managing its financial resources
  • 7. Financial Statement ofShield AutoGlass Limited Liquidity Ratio Activity Ratio Profitability Ratio Solvency Ratio
  • 8. Internal Source of Finance400 Rs in lacs 147.87 145.18300 41.74 104.18 107.67200100 0 2007 2008 2009 2010 2011 -35.46 -38.15-100 -79.15 -75.66 -141.59-200 Reserves and Surplus Owners Equty Paid up Capital
  • 9. External source of Finance 800 700 686.21 600 524.35 501.72 500 433.99 Secured Loan 400 365.65 Unsecured loan Long Term debt 300 200 100 0 2007 2008 2009 2010 2011
  • 10. Current Ratio of SAL 5 4.564.5 in crore 4.04 43.5 3.13 3.19 3.2 3 2.71 2.592.5 2.13 2 1.46 1.50 1.561.5 1.18 10.5 0 2008 2009 2010 2011 CA CL CR
  • 11. Quick Ratio of SAL3.5 In crore 3.13 3 2.87 2.71 2.592.5 2.13 2 1.85 1.85 QA 1.63 CL1.5 QR 1 0.92 0.87 0.71 0.600.5 0 2008 2009 2010 2011
  • 12. Inventory Turnover Ratio In times 18 16 15.68 14 12.20 12 10.74 10 Cost of good sold STR 8 6.94 Average stock 6 4 2 0.63 0.47 0.38 0.56 0 2008 2009 2010 2011
  • 13. Inventory Holding Period 60.00 In days 52 50.00 40.00 34 30.00 30 STR 20.00 23 ASHP 10.00 0.00 2008 2009 2010 2011
  • 14. Debtors Turnover Ratio8 In times765 4.874 4.24 Net credit sale3 2.28 2.87 average debtor 2 DTR 1 0 2008 2009 2010 2011
  • 15. Debt Collection Period In Days 400 6.00 350 5.00 300 4.00 250 No of Days 200 3.00 158 ACP 150 125 2.00 DTR 100 85 74 1.00 50 0 0.00 2008 2009 2010 2011
  • 16. Creditors Turnover ratio 6 In times 5 4 3.20 3 Net Credit Purchase 2.59 Avreage creditors 2 1.73 CTR 1.36 1 0 2008 2009 2010 2011
  • 17. Average payment Period In days300 3.50 3.20 265 3.00250 2.59 2.50200 208 2.00 1.73 CTR150 140 APP 1.36 1.50100 1.00 6450 0.50 0 0.00 2008 2009 2010 2011
  • 18. Fixed Asset Turnover Ratio In times 14 12.18 12 10.54 10 9.19 7.91 8 Sale 6.41 Average Fixed asset 6.02 6 5.19 FATR 4.23 4 2 0 2008 2009 2010 2011
  • 19. Current Asset Turnover Ratio In times141210 8 Net Sale Current Asset 6 CATR 4 3.29 2.88 3.01 2 1.73 0 2008 2009 2010 2011
  • 20. Working Capital Turnover Ratio In times3530 29.282520 Sale WC15 WCTR10 10.41 10.69 9.23 5 0 2008 2009 2010 2011
  • 21. Gross Profit Ratio In crore 14 46% 12 45% 45% 10 45% 45% 8 GP 44% 44% 6 Net Sale 44% GPR 44% 4 2 43% 0 43% 2008 2009 2010 2011
  • 22. Net Profit Ratio In crore14 0.00%12 -2.00% -3.81% -3.62% -4.00%10 -6.00% 8 -6.16% -8.00% NP 6 Net sale -10.00% NPR 4 -12.00% 2 -14.00% 0 -16.00% 2008 2009 2010 2011-2 -18.00% -17.83%-4 -20.00%
  • 23. Return On Equity16 In crore 0.00% -2.37% -2.62%14 -6.97% -5.00%12 -10.00%10 -15.00% 8 Equity NP 6 -20.00% ROE 4 -25.00% 2 -30.00% 0 2008 2009 2010 2011 -35.00%-2 -33.78%-4 -40.00%
  • 24. Debt Equity Ratio In crore16 1.80 1.70 14.78 14.5114 1.60 1.4012 10.76 1.2010 1.00 Debt 8 Shareholders fund 7.08 7.07 6.86 0.80 Debt Equity ratio 6 5.01 0.64 0.60 4.17 4 0.48 0.40 0.35 2 0.20 0 0.00 2008 2009 2010 2011
  • 25. Observations And Findings It has been observed that the company current ratio is keep increasing from the last 4 years (2008 to2011) which is a good sign for the company Liquidity ratios shows that the firm has been facing some problems regarding paying short term liabilities for last years, In 2008 the ratio was good i.e. 0.94 Inventory turnover ratio is constantly increasing from 2008, 2010 but in 2011 the ratio has been declined to 12.20. It indicates poor liquidity, possible overstocking. Improvement has been seen in debtor turnover ratio in last 2 years and there has been decline in the debt collection period which shows efficiency of staff of debt collection department.
  • 26. Observations And Findings The creditor’s turnover ratio keeps on increasing from past 2008 to 2011. High creditor turnover ratio is good because it will decrease the average payment period Drastic decline has been observed in working capital turnover ratio in 2011i.e 9.23 as it was 29.28 in 2010. Company currently is unable to meet its short-term liabilities with its current assets It has been observed from the give data the company is no more in profit, they are suffering from losses from past years as there operating expenses are very high. There ROE is also decreasing because they have no retained earnings It has been observed from the given data that debt equity ratio is less than 1in last 3 years except 2008 .It indicates that business uses mainly equity to finance its operations
  • 27. Recommendations• Company needs to maintain a high ratio for short-term liquidity, as it is not an ideal ratio which is an adverse sign for firm.• To increase the current ratio the firm should keep or increase the amount of current assets that they have and decrease the amount of current liabilities.• To increase the ratio of liquid assets the firm should have more cash with them and they should increase the amount of debtors and other liquid assets
  • 28. Recommendations• To increase the Inventory turnover ratio by increasing the demand of product line, set a better overall price for the products to increase demand, which in turn boosts sales and inventory turnover• Though the company sale is continuously increasing but still company is in loss so management should take some steps to increase the profit• The company’s profit after tax is negative. The reason was their operating expenses are very high so they should reduce the expenses

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