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 ..
