This is the Financial statement analysis of multinational company of axiata group & Dialog Axiata company in sri lanka.

1. FINANCIAL STATEMENT ANALYSIS
OF MULTINATIONAL COMPANY
Dulan Mahendra

2. Introduction
• Financial statement analysis (or financial analysis) is
the process of reviewing and analyzing a company's
financial statements to make better economic
decisions
• These statements include the income
statement, balance sheet, statement of cash flows,
and a statement of changes in equity

3. Cont.
• Financial statement analysis is a method or
process involving specific techniques for
evaluating risks, performance, financial health,
and future prospects of an organization

4. Objectives
• Assessment of Past Performance
• Assessment of current position
• Prediction of profitability and growth
prospects
• Assessment of the operational efficiency

5. Users of Financial Statement Analysis
• Financial statement analysis is an
exceptionally powerful tool for a variety of
users of financial statements, such as,
–Creditors
–Investors
–Management
–Regulatory authorities

6. Multinational Company?
• An enterprise operating in several countries
but managed from one (home) country
• Generally, any company or group that derives
a quarter of its revenue from operations
outside of its home country is considered a
multinational corporation

7. Definition……..
“Mr. Jacques Maisonrouge, President, IBM
world trade corporation describe MNCs”
• It operates in many countries at different
levels of economics development
• Its local subsidiaries are managed by nationals
• It maintains complete industrial organization
including research & development facilities in
several countries

8. Cont.
• It has a multinational central management
• It has multinational stock ownership

9. According to the ILO
“The essential nature of the multinational
enterprises lies in the fact that its managerial
headquarters are located in one country,
While the enterprise carries out operations in
a number of other countries as well”

10. History
• The Dutch East India Company
was the first multinational
corporation in the world & the
first company to issue stock

11. • The first modern multinational
corporation is generally
thought to be the East India
Company

22. Multinational Companies
In
SRI LANKA

25. Axiata Group
Axiata Group is a Malaysian
telecommunications
conglomerate with extensive
operations in Asia.

26. Axiata Group
• Axiata’s primary business is in investment
holding and the provision of
telecommunication and consultancy services
on an international scale. Their main focus
being emerging markets in Asia, some with
low mobile penetration in South and
Southeast Asia

27. Axiata Group
• Formerly known as TM International Bhd (TMI),
the company was incorporated on 12 June 1992
• Axiata has controlling interests in mobile
operators in Malaysia, Indonesia, Sri Lanka,
Bangladesh and Cambodia, with significant
strategic stakes in India, Singapore and Iran. The
Group also has stakes in non-mobile
telecommunication operations in Thailand and
Pakistan.

28. Subsidiary holdings
• In their website in 2015, it was announced
that Axiata had over 260 million subscriber
across Asia and a Group revenue of USD5.7
billion in 2014. Its market capitalization stood
at over USD18.5 billion at the end of 2014. It
was also reported that the company provided
employment to 25,000 people in 10 countries

32. Introduction to the Company
• Dialog Axiata PLC, a subsidiary of Axiata Group
Berhad (Axiata), operates Sri Lanka’s largest
and fastest growing mobile
telecommunications network. The Company is
also one of the largest listed companies on the
Colombo Stock Exchange in terms of market
capitalization. Dialog is also Sri Lanka’s largest
Foreign Direct Investor (FDI) with investments
totaling over USD 1.9 billion.

33. Cont.
• Dialog, a winner of six GSMA Mobile World
Awards has the distinction of being voted by
Sri Lankan consumers as the Telecom Service
Provider of the Year for five successive years
and Internet Service Provider of the Year at
the SLIM-Nielsen People’s Choice Awards

34. Cont.
• Dialog has topped Sri Lanka’s Corporate
Accountability rankings for the past six years
in succession and is an ISO 9001 certified
company. The Company has received
numerous local and international awards
including the National Quality Award and Sri
Lanka Business Excellence Award.

35. • Dialog was Listed on the Colombo Stock
Exchange in 2005 June As of February 2016
Dialog Axiata holds LKR 81.4 billion (USD 566
Million) in market capitalization and the 5th
largest listed company in Sri Lanka by Market
Capitalization

36. • In 2015 "Dialog" brand name was valued at
LKR 28.6 billion (US$204 million) and as the
3rd most valuable brand in the country by
business magazine LMD in its annual study. In
2014 the company received the highest
"Platinum" rating in the country's Corporate
Accountability Index for the 4th consecutive
year

39. Mobile Telephony Market Shares
(Subscriber Based) ‐ 2010

41. Vision
• To be the undisputed leader in the provision
of multi-sensory connectivity resulting always,
in the empowerment and enrichment of Sri
Lankan lives and enterprises.

42. Mission
• through the delivery of quality service and
leading edge technology unparalleled by any
other, spurred by an empowered set of
dedicated individuals who are driven by an
irrepressible desire to work as one towards a
common goal in the truest sense of the team
spirit.

43. Dialog Values
• Service from the Heart
•Create the Future
• Champions of Change
• Exceptional Performance
• Uncompromising Integrity
• Responsible Leadership
• One Team

44. ANALYSIS & INTERPRETATION
• Tools used,
– Income statement
– Balance sheet
– Cash flow statement
– Statement of Changes in equity

45. Income statement of Dialog
Axiata PLC

46. Gross Income
year 2012 2013 2014 2015
Income(Rs.) 6,021,425,000 5,194,142,000 5,872,250,000 5,340,145,000
4,600,000,000
4,800,000,000
5,000,000,000
5,200,000,000
5,400,000,000
5,600,000,000
5,800,000,000
6,000,000,000
6,200,000,000
2012 2013 2014 2015
Income

47. • Gross income was higher of last four year in
2012
• It was high, due to high Revenue was at
2012.Because of that 2012 is the most gross
income than other years.

48. Income tax expenses
Year 2012 2013 2014 2015
Tax (Rs.) 1,970,532,000 1,126,896,000 1,232,438,000 1,517,537,000
0
500,000,000
1,000,000,000
1,500,000,000
2,000,000,000
2,500,000,000
2012 2013 2014 2015
Tax

49. • There was high tax expenses in 2012
• Because there was a high gross income in
2012

50. Cash Flow
Statement

51. Net cash (used in) / generated from
financing activities
year 2012 2013 2014 2015
Cash Flow (Rs.) 8,654,251,000 345,790,000 635,622,000 2,409,089,000
0
2,000,000,000
4,000,000,000
6,000,000,000
8,000,000,000
10,000,000,000
2012 2013 2014 2015
Net cash (used in) / generated from
financing activities

52. Net (decrease) / increase in cash and
cash equivalents
Year 2012 2013 2014 2015
Cash Flow (Rs.) 3,790,025,000 7,264,523,000 5,380,465,000 1,690,280,000
0
1,000,000,000
2,000,000,000
3,000,000,000
4,000,000,000
5,000,000,000
6,000,000,000
7,000,000,000
8,000,000,000
2012 2013 2014 2015
Net (decrease) / increase in cash and cash
equivalents

53. Net cash used in investing activities
Year 2012 2013 2014 2015
Cash Flow (Rs.) 16,614,148,000 17,004,152,000 27,902,783,000 20,797,336,000
0
5,000,000,000
10,000,000,000
15,000,000,000
20,000,000,000
25,000,000,000
30,000,000,000
2012 2013 2014 2015
Net cash used in investing activities

54. Net cash generated from operating
activities
Year 2012 2013 2014 2015
Cash Flow (Rs.) 21,516,145,000 21,886,696,000 24,614,465,000 21,478,374,000
19,000,000,000
20,000,000,000
21,000,000,000
22,000,000,000
23,000,000,000
24,000,000,000
25,000,000,000
2012 2013 2014 2015
Net cash generated from operating
activities

55. • Net cash generated from operating activities
were highest in year 2014 and lowest in year
2012
• Because, in 2014 have highest increase in cash
and cash equivalents

56. STATEMENT OF CHANGES
IN EQUITY

57. Shareholders fund
Year 2012 2013 2014 2015
Shareholders
fund (Rs.)
37,181,545,000 39,735,570,000 44,832,290,000 47,317,652,000
0
10,000,000,000
20,000,000,000
30,000,000,000
40,000,000,000
50,000,000,000
2012 2013 2014 2015
Shareholders fund

58. Total Equity
Year 2012 2013 2014 2015
Total Equity
(Rs.)
62,230,728,000 69,092,923,000 74,743,818,000 72,724,196,000
0
10,000,000,000
20,000,000,000
30,000,000,000
40,000,000,000
50,000,000,000
60,000,000,000
70,000,000,000
80,000,000,000
2012 2013 2014 2015
Total Equity

59. • Shareholder funds is high in 2015.But total
equity is higher in 2014
• Due to variation of property, plant &
equipment and Other non-current assets

60. BALANCE SHEET

61. BALANCE SHEET
• A balance sheet is a financial statement that
summarizes a company's assets, liabilities and
shareholders' equity at a specific point in
time. These three balance sheet segments
give investors an idea as to what the company
owns and owes, as well as the amount
invested by shareholders.

62. Current assets
Year 2012 2013 2014 2015
Current assets
(Rs.)
20,806,549,000 18,375,237,000 24,280,875,000 20,329,223,000
0
5,000,000,000
10,000,000,000
15,000,000,000
20,000,000,000
25,000,000,000
30,000,000,000
2012 2013 2014 2015
Current assets

63. Liabilities
Year 2012 2013 2014 2015
Liabilities (Rs.) 28,303,008,000 35,311,226,000 37,435,326,000 44,127,064,000
0
10,000,000,000
20,000,000,000
30,000,000,000
40,000,000,000
50,000,000,000
2012 2013 2014 2015
Liabilities

64. • Current assets are high in 2014, But Liabilities
is higher in 2015
• But finally net assets are high in 2014, due to
high current assets