A REPORT ON
BHIWADI CYLINDERS PRIVATE LIMITED
FINANCIAL STATEMENT ANALYSIS
Roll No. : 1600074B201
K.L. Datta & Co. Chartered Accountants
K.L. Datta & Co. Chartered Accountants
Mr. Mudit Rustogi
Sr. Manager, Accountant Auditor
Dr. Amit Bagga
BML Munjal University
I hereby declare that the Project Report “BHIWADI CYLINDERS PRIVATE LIMITED FINANCIAL STATEMENT ANALYSIS” is my own work to the best of my knowledge and belief. It contains no material previously published or written by another person or material which to substantial extent has been accepted for the award of any other degree, diploma or programme of any other institute, except where due acknowledgement has been made in text
BML Munjal University
DINESH KUMAR GOYALK.L.DATTA & CO.
Chartered Accountant SPL-1(G), IND. AREA
Mob-9414012805 BHIWADI-301019 9214012805
This is to certify that Ms. Bhawna having I. D. No. 1600074B201, a student of Programme B.Com(KPMG) from Institute (BML Munjal University, Gurgaon) has done his/her Summer Internshipat K.L. Datta & Co., Chartered Accountants, SPL-1(G), RIICO Industrial Area, Bhiwadi, Distt. Alwar, Rajasthan from 21/05/2018 to 13/07/2018.
This Project work entitled “Bhiwadi Cylinders Pvt. Ltd. – Financial Statement Analysis” done by Bhawna during his/her Summer Internship.
We wish her every success in life.
M/S K.L. Datta & Co.,
Place: Bhiwadi Chartered Accountants
M. NO. : 074523
Tel:- 01493-220920, 221770, Email: [email protected], [email protected]
I have taken efforts in this summer internship. It would have not been possible without constant support and guidance of many people. I would like to extend my sincere thankfulness and indebtness to all those who extended their kind help by spending their precious time in explaining the various intricacies of the subject and suggesting the correct approach to me.
I am highly indebted to Mr Gopi Chand Goyal for their guidance and constant supervision as well as for providing information regarding my project work and also for helping me in completing my internship.
I would like to express my gratitude towards my parents and member of K.L. Datta & COMPANY for their kind cooperation and encouragement which helped me in the completion of this internship.
And lastly I would like to express my special gratitude to my supervisor Mr Mudit Rustogi for giving me such attention and time. This project has been a great learning experience for me and without his help it would not have been possible for me to do this project.
Bhiwadi Cylinders Pvt. Ltd. (BCPL) established in 1998. It is one of the largest cylinder manufacturers in India, having an annual production capacity of around one million cylinders unit located at Bhiwadi.It is one of the leading cylinder suppliers to the public sector LPG marketing companies in India like Indian Oil Corporation Limited, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited and have so far gave nearly one million LPG cylinders to these marketing companies. Its other variety of products are refrigerant cylinders (non-refillable and refillable), stainless steel cylinders for special applications, automotive LPG cylindrical and toroidal tanks in various sizes and capacities. Apart from this it’s involved in the manufacturing of multi-function valves used in automotive applications on board for LPG. The same section is manufacturing LPG cylinder and valves for disposable cylinders.Four modern production lines have been built with advance equipment’s in order to cater to domestic and international demand of LPG / Auto LPG / Non-Refillable / Refillable cylinders and valves. All the parameters of the quality are implemented by maintaining access to Indian, International, ISO, British, and American and European standards. For Indian markets the products are certified from Bureau of Indian Standards (BIS) as well as Petroleum and Explosives Safety Organization (PESO).Besides domestic marketing BCPL have also been exporting products to the countries like Kenya, Nigeria, Uganda, Rwanda, Mozambique, Ethiopia, Tanzania, Ghana, Chad and United Kingdom directly and various other countries all over the world indirectly. For export to European market its LPG and Helium gas cylinders carry PI marking from Bureau Veritas. It also has cylinder manufacturing approval from US Department of Transportation to manufacture and market cylinders. Its manufacturing facilities are approved by Standard Organization of Nigeria (SON) and Kenya Bureau of Standards (KEBS). Its products have the certification of conformity from M/s Intertek (India).The emphasis of the company is always on delivery of the products, meeting international quality standards at the lowest possible cost. For this, continuous training is imparted to its employees from time to time and high level of motivation is maintained. The result of this teamwork is visible in the product which speaks for its qualitywith its diversified commitments to the national and international standard /quality and safety. It is most trusted name in the industry today but for them at BCPL there is no time to rest, as many more milestones are yet to be achieved.
TABLE OF CONTENTS
CONTENT Page No.
List of Tables & Illustrations……………………………………………………………….8
List of Diagrams………………………………………………………………………………………………………………….8
1.1 Company Overview…………………………………………………………………………………………….……………….9
1.2 Introduction of the Study………………………………………………………………………………………….14
Review of Literature……………………………………………………………………………………………………………….15
1.0 Balance sheet (2017-18)……………………………………………………………………………………………………………………………..17
1.1 Profit & Loss Statement (2017-18)………………………………………………………………………………..28
1.2 Comparative Ratio Analysis…………………………………………………………………………………………..35
Findings & Suggestions………………………………………………………………………………………………………..……40
Limitations of the Study………………………………………………………………………………………………………………………42
LIST OF TABLES & ILLUSTRATIONS
Table No Topic Page No
Tab 1 Balance Sheet (2017-18) 17
Tab 2 Profit & Loss Statement (2017-18) 28
Tab 3 Current Ratio 35
Tab 4 Quick Ratio 35
Tab 5 Gross Profit Margin 36
Tab 6 Net Profit Margin 36
Tab 7 Return on capital employed 37
Tab 8 Solvency Ratio 38
LIST OF DIAGRAMS
Diagrams No Topic Page No.
Fig (a) Liquidity Ratios 35
Fig (b) Profitability Ratios 36
Fig (c) Return on capital employed 39
Fig (d) Solvency Ratios 38
Bhiwadi Cylinders Pvt. Ltd. (BCPL) established in 1998. It is one of the largest cylinder manufacturers in India, having an annual production capacity of around one million cylinders with manufacturing unit located at Bhiwadi.
Mr. Manvinder Singh – Managing Director
An engineering graduate from Delhi College of Engineering.
He is a well-known and respected technical professional in LPG cylinder industry in India and also a member of the following associations:
• Member of committee appointed to revise gas cylinder rules.
• Indian Auto LPG Coalition.
• ME -16 committee of Bureau of Indian Standards.
• Convener of the subcommittee to develop standards for Cryogenic Tanks
• Represents India in ISO as expert in Gas Cylinder manufacturing.
He has also established The Srijan School, Model Town, and New Delhi.
Mr. Rajneesh Chopra – Director
Holds a management degree from IMT Ghaziabad. Mr Chopra joined Bhiwadi Cylinders after a career in banking.
His greatest strength to the team has been increasing the efficiency in operations, increasing the scale of operations and timely delivery of the goods. He is in charge the production, purchase, finance and other commercial activities.
Mrs. Suminder Kaur – Director
Holds a Post-Graduation from IIT, Delhi. Mrs. Kaur has worked in the area of software use and development.
She joined Sapphire (India) Pvt. Ltd. as a Director in 2002 and thereafter joined Bhiwadi Cylinders Pvt. Ltd. In December 2005.
YEAR TURNOVER (INR)
2018-2019 160 cr
2019-2020 180 cr
2020-2021 210 cr
Bhiwadi Cylinders have applied Patent for the following product:
High tensile steel cylinder for refrigerant gases.
1. LPG cylinders for Indian market of 5, 14.2, 19 and 47.5 kg for public sector
2. LPG cylinders for private marketers 12, 12.5, 15, 17 and 30 kg
3. Auto gas tanks for LPG
4. Gas cylinders for refrigerant gases like R22, R134a, R410a and R32 for Indian markets
5. Brass valves for LPG cylinders and multi-function valves for Auto LPG
6. Jumbo cylinders of 1000 liters for LPG.
7. Tonners for R410a etc.
8. Stainless steel tonners under development for propellants for medical use.
9. Non-refillable cylinders refrigerant gases and other applications. These are completely exported indirectly by gas fillers / manufacturers and also deemed exports. Gas cylinders for exports to more than 25 countries.
Team of BCPL
The highly trained and motivated team is one of the strongest pillars of the company. These include qualified engineers, finance, and human resource and management professionals.
They encourage the team to enhance their skills by participation in trainings, seminars and exhibitions: in India and abroad.
Mr R.K. Raina
Mr Raina is an MBA with extensive marketing experience across various industries. He is spearheading exports of gas cylinders and valves and looks after the refrigerant gas cylinder market in India.
Mr Ashish Jain
Is a graduate in Company Law? Has extensive experience in Finance. Manages the financial needs and relationships of the company.
Mr S.K. Dey
Is an Engineering graduate. Has extensive experience in valve development and manufacturing. Holds a patent of valve design.
Mr Anurag Patel
Post Graduate in welding technology and a Mechanical Engineer. Experienced in pressure vessel and cryogenic cylinder space with prominent companies in India. He manages the design, development and production of all big capacity cylinders in the company.
Mr Sher Singh
Mr Singh is a graduate in Mechanical Engineering. He has spent more than 20 years at Bhiwadi Cylinders. He looks after the quality processes.
1986 – 1998
Manufacturing of LPG cylinders for Indian public sector companies like Indian Oil Corporation Limited, Hindustan Petroleum Corporation Limited and Bharat Petroleum Corporation Limited.
Bhiwadi Cylinders was set up for reconditioning of LPG cylinders.
Started manufacturing disposable cylinders for various refrigerant gases.
Today Bhiwadi is one of the well-known disposable cylinder manufacturer in the international market.
Started manufacturing of valves for LPG cylinders.
Today the company has a capacity to manufacture 25000 – 30000 valves per day.
Started exporting various sizes of cylinders ranging from 3 kg to 50 kg.
The company has so far exported cylinders to more than 30 countries all over the world.
Started manufacturing low weight LPG cylinders made out of High tensile steel.
Started manufacturing 990 ltr. tanks for commercial use. The demand for these tanks is growing steadily in India in commercial use. Presently the company is supplying these tanks to various reputed oil companies in India.
Under development Projects
Bhiwadi Cylinders has the following projects under development:
Manufacturing of tonners (1000 kg) for refrigerant gases .These tonners are in high demand in refrigerant industry locally as well as internationally.
Manufacturing of Intermediate Bulk Carrier (IBC) SS tanks of various sizes and capacities.
Bhiwadi Cylinders plans to develop the following products in the future:
Manufacturing of CANS for refrigerant industry. They have a high demand in India as well as internationally and we expect their initial sale to be approximately 10 – 12 million pieces.
Manufacturing of cryogenic TANKS.
Bhiwadi Cylinders Private Limited (BCPL) is incorporated on 01 January 1998. BCPL is classified as Non-govt company and is registered at Registrar of Companies, Delhi. BCPL authorized share capital is Rs. 60,000,000 and its paid up capital is Rs. 59,470,200.It is involved in Manufacture of refined petroleum productsAnnual General Meeting (AGM) of Bhiwadi Cylinders Private Limited was last held on 30 September 2016.
INTRODUCTION OF THE STUDY
Bhiwadi Cylinders Pvt. Ltd. is a Private limited Company. It was founded in the year 1998 in Bhiwadi (Rajasthan). Its directors are Mr. Manvinder Sing, Mr. Rajneesh Chopra, and Mrs. Suminder Kaur.
Finance is defined as the supplement of money when it is required. Finance is a must for every company. It is required to carry the operations of the company. Finance is vital for every company so it needs to look upon effectively. As we know that every company analyses its financial position after the end of its accounting period. This helps in knowing the strengths and weakness of the company and thereafter helps in the decision making of the company.
There are many methods and techniques through which we can analyse the financial performance of the company such as Comparative statements, Cash flow analysis, Ratio analysis and other operative data.
The very first step is to collect the information and analyse it for making decisions.
Second step is to arrange the information in a proper way to compare and make significant relationships.
And at last it is required to draw conclusions and make recommendations if any.
The present study is made as a part of the B.COM (KPMG) programme for summer internship in the form of on the job training with following activities.
To know about the financial position of the Bhiwadi Cylinders Pvt. Ltd.
To know the strength and weakness of Bhiwadi Cylinders Pvt. Ltd.
To measure the liquidity position of the company.
To find out the operational efficiency of the company.
To measure the growth rate over the years.
To know about the solvency and inventory use of the company.
To know the overall profitability of the company over the years.
All the activities are carried out in the Bhiwadi Cylinders Pvt. Ltd. Office in Bhiwadi, Rajasthan.
Bhiwadi Cylinders Pvt. Ltd. was incorporated in the year 2008. It is a Private Limited Company. It has currently three directors. It’s a manufacturing company headquartered at Delhi. The company has three designated directors Mr. Manvinder Sing, Mr. Rajneesh Chopra, Mrs. Suminder Kaur.
The company started with adequate amount of capital and limited staff and farms. But slowly and gradually the company expanded and has become one of the top manufacturing company of Rajasthan.
Bhiwadi Cylinders never lose the sight of the strategies that had helped establish the company. Their marketing remained an important aspect of the business.
With progressive years Bhiwadi Cylinders have paid a lot of emphasis on expanding the company all over India. It has focused immensely on customer loyalty by providing quality products. Its marketing has also improved over the years.
The company produces affordable products and has a flexible manufacturing set up for longer uniformity of products. It also comprises to international standards and fully absorption of technology.
There is a rising competition among manufacturing companies so one has to set their prices accordingly. There should be a strong distribution network across the country which will help in expanding. Immense focus on retail marketing as well. Using innovative display and communicating to customers through exbhitions and trade shows for consistent brand building efforts. A highly skilled human work force can be formed by identifying hardworking and deserving candidates and rewarding them.
The company is continually on the path to overcome any threats arising from competition amongst other manufacturers by making the product more competitive in terms of price and quality. The implementation of GST can also impact the company.
This project involved a lot of deep research and study of Bhiwadi Cylinders Pvt. Ltd. In this project report a sincere effort has been made to study the financial statements analysis of the company. During this study I have studied the financial position, projection and performance of the company. At last I have given interpretation and conclusion of the company.
The whole of my study is based on secondary data Bhiwadi Cylinders Pvt. Ltd. I have not taken any primary data would not have been helpful to me. During the holding of my study I have taken help of the following secondary data.
Annual report of Bhiwadi Cylinders Pvt. Ltd.
Balance sheet of Bhiwadi Cylinders Pvt. Ltd.
Profit and loss account of Bhiwadi Cylinders Pvt. Ltd.
There are some of the tools which are applicable for the study of analysis and performance of Bhiwadi Cylinders Financial Statements.
The main objective of the project is to help the management of the organisation in decision making regarding the subject matter. Calculation and analysis of the financial statements is only the office task whereas the interpretation of the analysis needs knowledge, skills and intelligence. One of the easiest and most popular ways of evaluating performance of the organisation is to compare its present ratios with the past ones called comparison and through development action plan.
Basically it gives an indication of the direction of change and reveals whether financial performance of the company has improved, detoriated or has remained constant over the years. The profitability of the company is especially highlighted through this.
A lot of emphasis is given to the comparison between the accounting years which helps us to know the performance criteria of the company. Because of this we can also estimate the growth trends of the company.
M/S BHIWADI CYLINDERS PRIVATE LIMITED
E-925,1200 ; 1201,INDUSTRIAL AREA,BHIWADI-301019
Balance Sheet as at 31 March, 2018
Note No. FIGURES AS AT 31.03.2018 (Amount in Rs.) FIGURES AS AT 31.03.2017 (Amount in Rs.)
A EQUITY AND LIABILITIES
1 Shareholder’s Funds
(a) Share Capital 1 5,94,70,200.00 5,94,70,200.00
(b) Reserves & Surplus 2 13,09,92,342.31 6,44,45,872.80
2 Share Application Money Pending Allotment –
3 Non-Current Liabilities
(a) Long-term borrowings 3 22,33,89,318.26 17,87,02,537.59
(b) Deferred tax liabilities (Net) 4 31,31,526.12 31,31,526.12
(c) Other Long term liabilities –
(d) Long-term provisions –
(a) Short-term borrowings 5 21,39,10,414.71 20,27,99,488.50
(b) Trade Payables 6 23,47,27,080.53 30,85,42,615.59
(c) Other current liabilities 7 -1,20,42,917.76 3,37,08,334.14
(d) Short-term provisions 8 62,70,696.00 62,70,696.00
TOTAL 85,98,48,660.17 85,70,71,270.74
1 Non-Current Assets
(a) Fixed Assets
(i) Tangible Assets 9 12,52,72,080.14 10,27,23,741.61
(ii) Intangible Assets – –
(iii) Capital work – in – progress – –
(iv) Intangible assets under development – –
(b) Non-Current Investments 10 1,96,20,000.00 1,96,20,000.00
(c) Deferred tax assets (net)
(d) Long-term loans and advances 11 0.00 7,50,000.00
2 Current Assets
(a) Current Investments 12 82,07,414.21 80,60,908.21
(b) Inventories 13 30,59,64,280.65 27,11,64,759.65
(c) Trade receivables 14 25,99,83,499.60 30,62,02,259.28
(d) Cash and cash equivalents 15 97,50,124.99 13,66,889.80
(e) Short-term loans and advacnes16 60,51,508.00 10,00,66,877.48
(f) Other current assets 17 12,49,99,752.58 4,71,15,834.71
TOTAL 85,98,48,660.17 85,70,71,270.74
Note No.-1 SHARE CAPITAL S.No. PARTICULARS AS AT 31.03.2018 (Amount in Rs.) AS AT 31.03.2017 (Amount in Rs.)
60,00,000 equity shares of Rs. 10/- each 6,00,00,000.00 6,00,00,000.00
having Equal voting rights
2 Issued, Subscribed & fully Paidup in Cash
5947020 equity shares of Rs. 10/- each 5,94,70,200.00 5,94,70,200.00
having Equal voting rights 5,94,70,200.00 5,94,70,200.00
A Reconciliation of the shares outstanding at the beginning and at the end of reporting period.
Particulars Equity Shares-Current Year Equity Shares-Previous Year
Number Amount Number Amount
Shares outstanding at the beginning of the year 59,47,020.00 5,94,70,200.00 56,67,020.00 5,66,70,200.00
Shares Issued during the year – – 2,80,000.00 28,00,000.00
Shares bought back during the year – – – –
Shares outstanding at the end of the year 59,47,020.00 5,94,70,200.00 59,47,020.00 5,94,70,200.00
B Terms / Rights attached to Shares
All equity shares are having equal voting rights. C Shareholding of more than 5% Name of Shareholder- Equity Shares As at 31 March 2018 As at 31 March 2017
No. of Shares held % of Holding No. of Shares held % of Holding
MANVINDER SINGH 1306182 21.96% 1306182 21.96%
TRIBURG INVESTMENT & ENGINEERS PRIVATE LIMITED 1025332 17.24% 1025332 17.24%
RAJNEESH CHOPRA 584504 9.83% 584504 9.83%
KRIPRA FINVEST PVT LTD 350000 5.89% 350000 5.89%
WENS AGRO FOODS LTD 300000 5.04% 300000 5.04%
SUMINDER KAUR 615000 10.34% 615000 10.34%
JAGMOHAN SINGH 320000 5.38% 320000 5.38%
TOTAL 4501018 75.68% 4501018 75.70%
D Shareholding of Less than 5%
MAKAMASHI SALES P.LTD 200000 3.36% 200000 3.36%
SUNINT INVESTMENT & TECHNOLOGY PVT LTD 260000 4.37% 260000 4.37%
SAPNA JAIN 185000 3.11% 185000 3.11%
ASHISH JAIN 150000 2.52% 150000 2.52%
BEENA JAIN 15000 0.25% 15000 0.25%
PRATAP CHAND CHANDANA 136002 2.29% 136002 2.29%
DADI RESORTS & HOTEL LTD 250000 4.20% 250000 4.20%
MAKAMASHI ENTERPRISES LTD 250000 4.20% 250000 4.20%
TOTAL 1446002 24.30% 1446002 24.30%
TOTAL 5947020 100.00% 5947020 100.00%
Note No.-2-: Reserve & Surplus (Amount in Rs.)
PARTICULARS As at 31.03.2018 As at 31.03.2017
a) Capital Reserve
Opening Balance 7,82,605.00 7,82,605.00
Addition: Current Year Transfer – –
Deduction : Written back in current year – –
Closing Balance 7,82,605.00 7,82,605.00
b) Foreign Exchange Earning Reserve
Opening Balance – –
Addition: Current Year Transfer – –
Deduction : Carried to General Reserve – –
Opening Balance 6,11,43,267.80 5,45,99,620.31
Addition: Net Profit after tax transferred from Statement of Profit & Loss 6,65,46,469.51 74,90,307.49
Amount available for appropriations
Deduction : appropriations for Tax (9,46,660.00)
Closing Balance 12,76,89,737.31 6,11,43,267.80
d) General Reserve
Opening Balance 25,20,000.00 25,20,000.00
Addition: Share Premium Earning Reserve –
Deduction : appropriations – –
Closing Balance 25,20,000.00 25,20,000.00
Total 13,09,92,342.31 6,44,45,872.80
Note – 3 LONG TERM BORROWINGS S.No. PARTICULARS AS AT 31.03.2018 (Amount in Rs.) AS AT 31.03.2017 (Amount in Rs.)
a Standard Chartered bank 95,30,214.26 1,11,84,299.89
(Secured against hypothecation of Office building of Registered Office situated at Delhi and personal guarantee of Directors @ 8.7%)
b Edelwiese 2,69,45,945.00 2,96,91,533.00
(Secured against hypothecation of Property No. L-28/8, City Phase -II, Gurgaon and personal guarantee of Directors @ 13%)
c Vehicle Loans (Annexure-A) 44,62,965.72 33,18,704.70
(Secured against hypothecation of respective vehicles and personal guarantee of Directors)
Term Loan 3,34,05,090.28
(d) From Directors,ShareHolders & Theirs Relatives 75,00,000.00 –
(e) Intercorporate Loans (Annexure-B) 141545103 13,45,08,000.00
Total 22,33,89,318.26 17,87,02,537.59
Note – 5 SHORT TERM BORROWINGS S.No. PARTICULARS AS AT 31.03.2018 (Amount in Rs.) AS AT 31.03.2017 (Amount in Rs.)
(a) Loans repayable on demand –
i) HDFC Bank Limited 9,39,10,414.71 8,27,99,488.50
ii) WCDL(HDFC Bank) 12,00,00,000.00 12,00,00,000.00
Total 21,39,10,414.71 20,27,99,488.50
Note – 6 TRADE PAYABLES S.No. PARTICULARS AS AT 31.03.2018 (Amount in Rs.) AS AT 31.03.2017 (Amount in Rs.)
(a) Trade Payable (Annexure-C)
Services 42,77,415.46 74,09,186.33
Transporters 98,53,449.35 1,94,93,471.37
Goods 18,55,33,865.53 18,22,17,618.78
Trading Creditors 53,39,128.63 1,44,44,870.63
Advance from Customer 2,97,23,221.56 8,49,77,468.48
Total 23,47,27,080.53 30,85,42,615.59
” There are Micro, Small & Medium enterprises to whom the company owes dues which are outstanding for more than 45 days of the Balance Sheet date of Rs.1,98,11,573.01 (As per sheet Attached) The above information regarding Micro, Small and medium enterprises has been determined to the extant such parties have been identified on the basis of information available with company Note – 7 OTHER CURRENT LIABILITIES S.No. PARTICULARS AS AT 31.03.2018 (Amount in Rs.) AS AT 31.03.2017 (Amount in Rs.)
A -Other Payable
Salary Payble (1,84,94,053.00) 1,42,84,745.00
Telephone Expenses Payable – 28,802.00
Electricity Charges Payable – 25,70,396.00
Others Expenses Payables(Annexure-D) 9,29,672.00 21,03,820.00
Security Deposite Against C Form 18,900.00 18,900.00
Duties & Taxex Payable (Annexure-E) 55,02,567.80 1,27,01,799.03
Intt Accured But Not Paid 19,99,872.11
Total -1,20,42,917.76 3,37,08,334.14
Note – 8 SHORT TERM PROVISIONS S.No. PARTICULARS AS AT 31.03.2018 (Amount in Rs.) AS AT 31.03.2017 (Amount in Rs.)
(a) -Provision for Income Tax 62,70,696.00 62,70,696.00
Total 62,70,696.00 62,70,696.00
Note 10 Non – Current Investments S.No. PARTICULARS AS AT 31.03.2018 (Amount in Rs.) AS AT 31.03.2017 (Amount in Rs.)
(a) 65000 shares of M/s Sapphire India Pvt. Ltd. 1,96,20,000.00 1,96,20,000.00
Total 1,96,20,000.00 1,96,20,000.00
Note 11 LONG TERM LOANS AND ADVANCES S.No. PARTICULARS AS AT 31.03.2018 (Amount in Rs.) AS AT 31.03.2017 (Amount in Rs.)
Capital Advances – 7,50,000.00
i) Empire Machine Tools 500000.00
ii) Web Overseas 250000.00
Total – 7,50,000.00
Note- 12 Current Investment S.No. PARTICULARS AS AT 31.03.2018 (Amount in Rs.) AS AT 31.03.2017 (Amount in Rs.)
(a) Fixed Deposites (Bank of Maharashtra) 1,25,000.00 1,25,000.00
(b) Fixed Deposites (HDFC Bank) 51,96,196.00 50,49,690.00
(c) NSC 28,66,218.21 20,000.00
(d) Intt Accured on Fixed Deposited 20,000.00 28,66,218.21
Total 82,07,414.21 80,60,908.21
Note-13 INVENTORIES S.No. PARTICULARS AS AT 31.03.2018 (Amount in Rs.) AS AT 31.03.2017 (Amount in Rs.)
(At lower of Cost or net realisable Vlaue)
(As certified by the Management)
(a) Raw Material 11,82,49,518.00 13,61,57,397.92
(b) Component 2,16,76,612.21 99,57,653.60
(c) Consumable 7,32,43,965.81 2,75,02,827.54
(d) Finished Goods 7,61,80,756.47 6,90,03,784.34
(e) Unfinished Goods 1,94,07,825.65 2,14,77,809.65
(f) Trading Stock 12,00,909.31
(g) Scrap (39,95,306.80) 70,65,286.60
Total 30,59,64,280.65 27,11,64,759.65
Note 14 TRADE RECEIVABLES S.No. PARTICULARS AS AT 31.03.2018 (Amount in Rs.) AS AT 31.03.2017 (Amount in Rs.)
(Unsecured, considered good) – ANNEXURE – F
MORE THAN 6 MONTHS 25,99,83,499.60 28631970.1
Total 25,99,83,499.60 30,62,02,259.28
Note 15 CASH & CASH EQUIVALENTS S.No. PARTICULARS AS AT 31.03.2018 (Amount in Rs.) AS AT 31.03.2017 (Amount in Rs.)
(a) Cash & Cash Equivalents
Balances with Bank in Current Accounts
i) Bank Of Maharashtra(Bhiwadi) 1,42,534.27 2,38,238.27
iii) B.O.M. Delhi 29,25,957.00 67,581.04
iii) HDFC Bank Ltd. 27,78,818.31 3,13,212.08
Iv) S.B.I. Bhiwadi 8,71,185.68 1,06,046.68
(v)Hdfc New Ac 9,540.50 9,540.50
(b) Cash in Hand 3022089.23 6,32,271.23
Total 97,50,124.99 13,66,889.80
Note 16 SHORT TERM LOANS AND ADVANCES S.No. PARTICULARS AS AT 31.03.2018 (Amount in Rs.) AS AT 31.03.2017 (Amount in Rs.)
(Unsecured Considered good)
Loans and advances to Suppliers (Annexure-G) 60,51,508.00 9,48,82,382.48
Loans and advances to others (Annexure-G) – 51,84,495.00
Total 60,51,508.00 10,00,66,877.48
Note 17 Others Current Assets
S.No. PARTICULARS AS AT 31.03.2018 (Amount in Rs.) AS AT 31.03.2017 (Amount in Rs.)
(a) Security Deposits – 1,35,90,195.00
(b) Security Deposits to JVVNL 36,93,119.00 24,38,119.00
(c) Security Deposits to Sail 4,00,000.00 4,00,000.00
(d) Security Deposits to Others 2,66,870.00 2,66,870.00
(e) Tds Receivable – 75,945.80
(f) Interest Receivable(JVVNL) 1,52,983.00 1,52,983.00
(g) Advance to suppliers 7,00,21,875.75 –
(h) Income Tax Advance(F.Y.2017-18) 53,98,945.80 34,00,000.00
(I) Service Tax Receivable – 24,93,872.60
(j) Excise Duty For Next Year on capital goods – 13,80,027.00
(k) Excise Duty (Cenvat Credit) – 18,53,887.77
(l) Sales Tax 3,26,189.00 8,05,273.00
(m) Income Tax Advance 54,020.00 54,020.00
(n) Export Incentive – 1,82,72,163.54
(o) Imprest (Director & Managerial Staff) 9,61,944.00 5,62,527.00
(p) Prepaid Expenses – 1,92,219.00
(q) SHIS (INCENTIVE RECIEVABLE) 6,60,045.00 –
(r) Tender/ Earnest Money Deposits 1,71,40,195.00 –
(s) Income Tac Advance Tax (AY 2018-19) 53,05,000.00 –
(u) DEPB(In Hand Receivable) 1,75,930.01 –
(v) Duty Drawback Receivable 40,52,649.53 –
(w) Focus Incentive Receivable 1,00,00,000.00 –
(x) Focus Products Scheme 7,92,250.00 –
(y) FORGIEN CURRENCY(USD) 2,13,954.00 –
(z) suspense account 50,16,899.49 –
(za) GST on Reverse Charges 2,62,858.00 –
(zb) Duties in Hand 1,04,025.00 –
(zc) Prepaid Insurance – 11,77,732.00
Total 12,49,99,752.58 4,71,15,834.71
M/S BHIWADI CYLINDERS PRIVATE LIMITED
E-925,1200 & 1201,INDUSTRIAL AREA,BHIWADI-301019
Statement of Profit and Loss for the year ended 31 March, 2018
S.No. PARTICULARS Note No. FIGURES FOR THE YEAR ENDED 31.03.2018 (Amount in Rs.) FIGURES FOR THE YEAR ENDED 31.03.2017 (Amount in Rs.)
A CONTINUING OPERATIONS 1 Revenue from operations (Gross) 18 1,05,98,06,714.09 1,48,35,54,948.71
Other operating Revenues 18A 4,79,047.00 3,46,329.84
Less: Excise Duty – -14,26,61,089.87
Revenue from operations (net) 1,06,02,85,761.09 1,34,12,40,188.68
2 Other income 18B 0.00 7,59,457.94
3 Total Revenue (1+2) 1,06,02,85,761.09 1,34,19,99,646.62
4 Expenses: Cost of materials consumed(Raw Material) 19 73,75,25,405.17 80,34,14,648.21
Cost of materials consumed(Component) 19A 43,37,738.10 8,44,94,903.95
Cost of materials consumed(Stores) 19B 3,61,81,659.29 17,08,25,133.07
Trading Consumption 19C 0.00 1,81,24,675.67
Changes in inventories of FG, WIP, SIT 19D 59,53,605.27 -4,81,36,283.28
Employee benefits expenses 20 5,14,99,091.00 5,84,73,379.00
Finance costs 21 95,11,932.31 4,50,50,734.07
Manufacturing Expenses 22 8,24,78,448.76 9,89,87,294.92
Selling & Distribution Expenses 23 31,220.00 30,05,544.36
Administration Expenses 24 5,07,46,018.17 8,12,60,715.39
Depreciation and amortization expense 9 1,10,00,838.00
Interest & Bill Discounting 1,54,74,173.51 Excise Duty Total expenses 99,37,39,291.58 1,32,65,01,583.36
5 Profit / (Loss) before exceptional and 6,65,46,469.51 1,54,98,063.26
extraordinary items and tax (3-4) 6 Exceptional items 25 0.00 13,96,604.50
7 Profit / (Loss) before extraordinary items and tax (5 + 6) 6,65,46,469.51 1,41,01,458.76
8 Extraordinary Items 9 Profit / (Loss) before tax (7 + 8) 6,65,46,469.51 1,41,01,458.76
10 Tax expenses: (1) Current tax expenses – 46,00,000.00
(2) Deferred tax – 3,40,455.27
11 Profit / (Loss) from continuing operations (9 +10) 6,65,46,469.51 91,61,003.49
B DISCONTINUING OPERATIONS 12.1 Profit / (Loss) from discontinuing operations – –
12.2 Tax expense of discontinuing operations – –
13 Profit/(loss) from discontinuing operations(12.1-12.2) – –
C TOTAL OPERATIONS 14 Profit (Loss) for the year (11+13) 6,65,46,469.51 91,61,003.49
15 Earnings per equity share of Rs. 10/- each:- (1) Basic (Continuing Operations) 26 11.19 1.54
(2) Diluted (Continuing Operations) (3) Nominal Value of one Equity Share 10.00 10.00
Note – 18 REVENUE FROM OPERATIONS S.No. PARTICULARS FOR THE YEAR ENDED 31.03.2018 (Amount in Rs.) FOR THE YEAR ENDED 31.03.2017 (Amount in Rs.)
(a) Sale of Products Manufactured(Domestic) Sales-New LPG Cylinders 8,56,65,793.98 47,58,67,224.75
Sales-Disposable Cylinders 7,99,91,767.50 27,40,52,673.50
Sales-Scrap 3,48,63,540.00 4,07,37,438.40
Sales-S.C.Valve 6,59,29,020.97 16,19,79,026.32
Sales R 22 68Litres 1,79,48,820.00 3,59,18,000.00
Sales-V.P Rings – 1,16,19,200.00
Sales-Raw Material – 15,47,43,675.65
Misc Sale 4,38,87,971.01 1,35,512.00
EXEMPTED SALE 14,943.56 –
Sales IGST 35,98,30,882.93 –
SALES SGST 20,78,79,034.60 –
Excise – 14,26,61,089.87
Total Sale of Products Manufactured(Domestic) (a) 89,60,11,774.55 1,29,77,13,840.49
Trading Sales including excise duty (b) 1,82,74,944.58
Sale of Products Manufactured (Export) 16,37,94,939.54 16,75,66,163.64
Excise Sales-Export Cylinders (c) 16,37,94,939.54 16,75,66,163.64
Other operating Revenues Total (a+b+c) 1,05,98,06,714.09 1,48,35,54,948.71
Note – 18A OTHER OPERATING REVENUE S.No. PARTICULARS FOR THE YEAR ENDED 31.03.2018 (Amount in Rs.) FOR THE YEAR ENDED 31.03.2017 (Amount in Rs.)
(a) Duty Drawback(Export) 4,79,047.00 19,64,290.00
(b) Fluctuation of Currency(Export) 0 -16,17,960.16
Total 4,79,047.00 3,46,329.84
Note – 18B REVENUE FROM OTHERS INCOME S.No. PARTICULARS FOR THE YEAR ENDED 31.03.2018 (Amount in Rs.) FOR THE YEAR ENDED 31.03.2017 (Amount in Rs.)
(a) Intt. Recd From JVVNL 0.00 1,69,981.00
(b) Int On FDR – 5,89,476.94
(c) Profit on Sale of Plants & Machinery – –
(d) Commision Recd – –
Total – 7,59,457.94
Note 19 COST OF MATERIALS CONSUMED (RAW MATERIAL) S.No. PARTICULARS FOR THE YEAR ENDED 31.03.2018 (Amount in Rs.) FOR THE YEAR ENDED 31.03.2017 (Amount in Rs.)
(a) Material consumed (Raw Material) -(Annexure- “H’) Opening Stock 13,61,57,397.92 9,12,47,044.46
Add: Purchases 71,96,17,525.25 85,98,17,615.38
Less : Discount 1,14,92,613.71
Less : Closing Stock 11,82,49,518.00 13,61,57,397.92
Total 73,75,25,405.17 80,34,14,648.21
Note – 19A COST OF MATERIALS CONSUMED (COMPONENT) S.No. PARTICULARS FOR THE YEAR ENDED 31.03.2018 (Amount in Rs.) FOR THE YEAR ENDED 31.03.2017 (Amount in Rs.)
(b) Material consumed (Component) (Annexure- “H’) Opening Stock 99,57,653.60 71,74,935.19
Add: Purchases 1,60,56,696.71 87277622.36
Less : Closing Stock 2,16,76,612.21 99,57,653.60
Total 43,37,738.10 8,44,94,903.95
Note – 19B COST OF MATERIALS CONSUMED (STOERS) S.No. PARTICULARS FOR THE YEAR ENDED 31.03.2017 (Amount in Rs.) FOR THE YEAR ENDED 31.03.2016 (Amount in Rs.)
(c) Material consumed (Stores) (Annexure- “H’) Opening Stock 2,75,02,827.54 2,44,82,735.28
Add: Purchases 8,19,22,797.56 17,38,45,225.33
Less : Closing Stock 7,32,43,965.81 2,75,02,827.54
Total 3,61,81,659.29 17,08,25,133.07
Note – 19C Trading Consumption S.No. PARTICULARS FOR THE YEAR ENDED 31.03.2018 (Amount in Rs.) FOR THE YEAR ENDED 31.03.2017 (Amount in Rs.)
(c) Material consumed (Stores) (Annexure- “I’) Opening Stock – 1,81,24,675.67
Add: Purchases – – 1,81,24,675.67
Less : Closing Stock – –
Total – 1,81,24,675.67
Note – 19D CHANGE IN INVENTORIES OF FINISHED GOODS, WIP, STOCK IN TRADE S.No. PARTICULARS FOR THE YEAR ENDED 31.03.2018 (Amount in Rs.) FOR THE YEAR ENDED 31.03.2017 (Amount in Rs.)
(d) Closing Stock (Annexure- “I’) Finished Cylinders 7,61,80,756.47 6,90,03,784.34
Unfinished Cylinders 1,94,07,825.65 2,14,77,809.65
Scrap -39,95,306.80 70,65,286.60
TOTAL 9,15,93,275.32 9,75,46,880.59
Less : Opening Stock Finished Cylinders 6,90,03,784.34 2,87,81,441.89
Unfinished Cylinders 2,14,77,809.65 1,66,61,896.57
Scrap 70,65,286.60 39,67,258.85
TOTAL 9,75,46,880.59 4,94,10,597.31
Increase/(Decrease) in stock (59,53,605.27) 4,81,36,283.28
Note 20 EMPLOYEE BENEFIT EXPENSES S.No. PARTICULARS FOR THE YEAR ENDED 31.03.2018 (Amount in Rs.) FOR THE YEAR ENDED 31.03.2017 (Amount in Rs.)
(a) Salaries 2,24,23,679.00 2,84,91,337.00
(b) Bonus 1,61,250.00 14,50,000.00
(c) Directors Remuneration 2,70,00,000.00 2,54,87,025.00
(d) Employers Share of Provident Fund & ESIC 7,59,552.00 16,98,935.00
(e) Insurance Keyman – 5,38,767.00
(f) Employee Gratuity – 39,230.00
(g) El Encashment – 1,51,200.00
(h) Incentive 46,058.00 61,885.00
(i) Salary Arrear 28,250.00 5,55,000.00
(j) Medicine & Treatment 6,96,000.00 –
(k) Staff Over Time 3,84,085.00 –
(l) ESIC on Interest 217.00 –
Total 5,14,99,091.00 5,84,73,379.00
Note 21 FINANCE COSTS S.No. PARTICULARS FOR THE YEAR ENDED 31.03.2018 (Amount in Rs.) FOR THE YEAR ENDED 31.03.2017 (Amount in Rs.)
(a) Interest expenses on Bank Loan 43,54,400.91 1,93,87,333.00
(b) Bank Charges 6,12,373.76 10,18,861.87
(c) Bill Discounting 7,57,600.14 19,29,960.92
(d) Processing Fees 15,72,629.50 12,39,968.00
(e) Other Interest 22,14,928.00 2,14,74,610.28
Total 95,11,932.31 4,50,50,734.07
Note 22 MANUFACTURING AND OTHER EXPENSES S.No. PARTICULARS FOR THE YEAR ENDED 31.03.2018 (Amount in Rs.) FOR THE YEAR ENDED 31.03.2017 (Amount in Rs.)
(a) Amc of M/C 1,97,100.00 2,24,99,629.00
(b) Cartage 70,814.02 25,27,709.75
(c) Cartage [email protected]% 990.00 –
(d) Cartage Under GST 1,97,634.29 –
(e) Consumable Stores 1,71,197.00 2,75,23,713.44
(f) Cst on Purchases 25,39,069.36 3,01,319.75
(g) Custom Duty – 4,38,855.19
(h) Factory Power 1,76,80,021.00 1,27,41,906.93
(i) Filling Permission(Chief Controller of Explosives, Nagpur) 13,50,350.00 51,59,146.00
(j) Freight Inward and outward 1,40,76,206.24 –
(k) Freight, Transportation 29,66,471.00 1,32,830.84
(l) Job Work 40,53,482.25 2,03,56,649.00
(m) Loading & Unloading Expenses 1,75,300.00 5,19,024.00
(n) Marking & Testing Fees(Bureau of Indian Standards,Bureau Veritas) 71,05,327.00 9,31,376.80
(o) Loading / Packing/ Service Charges Expenses 28,325.00 –
(p) Machinery Repair & Maint. 21,200.00 –
(q) Ocean Freight @5% 35,71,704.60 –
(r) Pest Control Rodcut Control 24,500.00 –
(s) Thc Transporation [email protected]% 8,17,764.00 –
(u) Workmen Wages 2,74,30,993.00 58,55,134.22
Total 8,24,78,448.76 9,89,87,294.92
Note 23 Sales And Distribution Expenses S.No. PARTICULARS FOR THE YEAR ENDED 31.03.2018 (Amount in Rs.) FOR THE YEAR ENDED 31.03.2017 (Amount in Rs.)
(a) Advertisement Expenses 31,220.00 46,960.00
(b) Sales Promotion Expenses 0 –
(c) Business Promotion Expenses 0 29,42,822.36
(d) Sample Sales 0 15,762.00
Total 31,220.00 30,05,544.36
Note 24 ADMINISTRATION EXPENSES S.No. PARTICULARS FOR THE YEAR ENDED 31.03.2018 (Amount in Rs.) FOR THE YEAR ENDED 31.03.2017 (Amount in Rs.)
(a) Adv Payment of Entry Tax Interest 546.00 –
(b) Airport Charges 13,096.00 –
(c) Auditors Remuneration – 1,73,000.00
(d) Bill Discounting Charges(Hdfc Bank) 15,75,167.12 –
(e) Brokerage & Commission 84,349.00 –
(f) Building Repair & Maint. 39,700.00 –
(g) Credit Card 33,23,869.99 –
(h) Credit Card (M.S) 4,80,279.77 –
(i) Custom Duty 18,88,900.51 –
(j) Commission Charges 2,21,658.00 8,43,837.00
(k) Discount & Rebate -5,538.50 –
(l) Domestic Tours Expenses 4,33,197.00 –
(m) Donation Expenses 1,25,200.00 27,500.00
(n) Diwali Expenses 5,50,625.92 9,48,685.00
(o) Entry Tax 5,74,113.00 1,16,634.00
(p) FOODING EXPENSES 89,518.00 –
(q) Freight 2,000.00 –
(r) Freight Outward Service @18% 1,16,360.25 –
(s) Freight Outward Services 1,20,81,860.26 –
(t) Freight Outward (S.T.Paid) 88,65,444.57 –
(u) Freight Outward (GST) -55,38,680.00 –
(v) Freight Transportation (Outward) 68,41,207.00 4,53,69,561.60
(w) Income Tax Demand AY-13-14 1,00,000.00 –
(x) Interest on CST 83,898.00 –
(y) Interest On Vat 1,860.00 –
(z) Intt.On Entry Tax 35,010.00 –
(za) Insurance 16,64,044.00 17,84,109.00
(zb) Job Work Dished 5,70,280.00 –
(zc) Job Work (Without Tax) 72,842.00 –
(zd) LD Charges 49,24,334.72 91,68,846.68
(ze) Legal Fees 11,61,840.00 2,76,138.10
(zf) Medical Expenses – 11,53,927.00
(zg) Membership & Subscription Expenses 8,000.00 68,000.00
(zh) Office Expenses 5,30,038.00 3,40,233.36
(zi) Postage & Telegram 1,07,305.45 1,43,776.00
(zj) Printing & Stationery 1,97,299.00 5,52,875.31
(zk) Professional Charges 12,50,590.00 3,79,000.00
(zl) Processing Fees 12,435.00 –
(zm) Repair & Maintaince 6,63,276.94 28,12,890.00
(zn) Service Charges 44,341.25 25,243.00
(zo) Service Tax – 15,89,359.00
(zp) Short/Excess 22,730.98 63,345.69
(zq) Staff Welfare Expenses 20,78,998.00 18,45,660.52
(zr) Octroi – -58,201.84
(zs) Income Tax Expenses – 2,000.00
(zt) Stamp Duty 4,95,000.00 –
(zu) Telephone Exp 3,21,859.55 12,33,972.03
(zv) Travelling Expenses 41,92,793.00 90,79,139.84
(zw) Vehicle Expenses 3,33,888.39 9,60,671.86
(zx) Weighing Exp 1,10,480.00 1,58,864.00
(zy) Late Fees – 22,01,648.24
Total 5,07,46,018.17 8,12,60,715.39
Note 25 Exceptional Items S.No. PARTICULARS FOR THE YEAR ENDED 31.03.2018 (Amount in Rs.) FOR THE YEAR ENDED 31.03.2017 (Amount in Rs.)
(a) Entry Tax (Prior Period Exp. 2012-13) (b) Sales tax on Demand (Prior Period Exp.) (2011-2012) – 60,121.00
(c) Income tax Expenses – –
(d) Professional Charges 2012-2016 – 1,03,397.00
(e) Interest & Penalty on Excise Duty 2015-2016 – 1,82,928.00
(f) Salary Expenses 2015-2016 – 21,769.00
(g) Bonus 2015-2016 – 10,23,475.00
Bank Charges 2015-2016 – 4,914.50
Total 0.00 13,96,604.50
Interest & Bill Discounting S.No. PARTICULARS FOR THE YEAR ENDED 31.03.2018 (Amount in Rs.) FOR THE YEAR ENDED 31.03.2017 (Amount in Rs.)
(a) Interest on Bank Loan 1,28,45,684.00 –
(b) Interest on BPCL 7,013.57 –
(c) Interest on TDS 4,84,217.00 –
(d) Interest on Term Loan 16,81,159.28 –
(e) Interest On Vehicle Loan 3,16,057.78 –
Total 1,54,74,173.51 0.00
Note 26 Earning per Share S.No. PARTICULARS Unit FOR THE YEAR ENDED 31.03.2018 (Amount in Rs.) FOR THE YEAR ENDED 31.03.2017 (Amount in Rs.)
(a) Profit(Loss)before tax amount used as the numerator Rs. 6,65,46,469.51 91,61,003.49
(b) Number of equity Shares Nos. 59,47,020 59,47,020
(c) Nominal Value of Shares Rs. 10.00 10.00
(d) Earning Per Share (Basic & Diluted ) 11.19 1.54
COMPARATIVE RATIO ANALYSIS
Current ratio: Current Asset /Current Liabilities
Particulars 2018 2017
Current Assets 709939680.54 733977529.13
Current Liabilities 228954863.33 551321134.23
Current ratio 3.1 1.33
Quick ratio: Current Asset – Stock in hand/Current Liabilities
Particulars 2018 2017
Current Assets 403975399.89 462812769.48
Current Liabilities 228954863.33 551321134.23
Quick Ratio 1.76 0.84
Analysis: The current ratio for the year 2018 stands at 3 and in 2017 it stands at 1.3 this means that the company is in a liquid position to pay its short term obligations. The quick ratio for the year 2017 is in its ideal state. As we know that quick ratio or acid test ratio is another liquidity metric for any given company. The quick ratio shows us the better picture of whether the company is able to pay its current liabilities. It tells us the inventory level.
Gross profit Margin: Gross profit/Net sales
Particulars 2018 2017
Gross profit 193329857.36 213529816
Net sales 1059806714.09 1340893858.84
GP Ratio 18.24% 15.92%
Net Profit Margin: Net profit/Net sales
Particulars 2018 2017
Net profit 66067422.37 14101458
Net Sales 1059806714.09 1340893858.84
ROI 6.23% 1.05%
Return on capital employed:
Net operating profit/capital employed
Particulars 2018 2017
Net operating profit 66067422.37 14101458
Capital employed 190462542.31 123916072.80
ROCE 34.69% 11.38%
Analysis: The GP ratio has improved to certain extent in the year 2018. This means that the company is doing good at the operational level. ROI of the company has also increase to a large extent in the year 2018 which means that the company is getting enough returns as invested. Return on capital employed is a ratio that measures company’s profitability and efficiency with which its capital is employed. ROCE for the year 2018 has increased which would reflects the efficient use of capital.
Debt equity ratio: Total Debt/Shareholder’s equity
Particulars 2018 2017
Total Debt 437299732 381502026.09
Shareholder’s Equity 190462542.31 857071270.74
Debt equity ratio 2.30 3.08
Total debts to total assets: Total debts/Total assets
Particulars 2018 2017
Total debts 437299732 381502026.09
Total assets 190462542.31 123916072.80
Total debts to total assets 2.30 3.08
Analysis: Debt equity ratio is higher in 2018 as compared to 2017. It is not satisfactory. This means that the company is not using its debt to finance its assets relative to the amount of value represented in shareholders’ equity. Total debts to total assets ratio for the year 2018 and 2017 is 0.57 and 0.61. This ratio is an indicator of financial leverage. In 2018 50% of the company’s assets are financed creditors or debts .and the other 50% is managed by owners. It has decreased to a certain bit in 2017 which is good for the company.
The manufacturing sector in India is not only overawed with concerns changing from decline in exports and infrastructure costs but also with the burden of complying with a complex indirect taxation system. Multiple indirect tax legislations have led to significant compliance and administrative costs, classification and valuation disputes and generally impaired the ease of doing business in this sector. The implementation of goods and services tax (GST) is therefore critical and essential to give a boost to an already failing sector.
As Bhiwadi Cylinders is a manufacturing company and having aggregate turnover in in financial year exceeds Rs 20 lakh BCPL is also liable to register under GST law.
BCPL furnish a return of GSTR – 1(Outward Supply) and GSTR – 3B (Consolidated Supply) to file an annual return.
The condition necessary for BCPL to obtain ITC are:
They get the tax invoice or Debit Note.
Goods should be received.
Supplier should paid the amount of tax.
Return should be file under sec39 (R3).
ITC not available to BCPL if:
Goods are used for personal consumption and
Goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples.
FINDINGS & SUGGESTIONS
The current assets have decreased in 2018 by Rs 19020949.10 that is by 97.40%.
The cash and bank balance have increased by Rs. 8383235.19 that is by 713.31%.
The company provides loan and advances to its customers less in 2018 as compared to 2017 by 94015369.48 that is by 6.05%.
Security deposits have same in both years that is 18900.
Current liabilities are decreased in the year 2018 than previous year by Rs 108455860.75 that is by 80.32%.
Net income of the company has decreased in the year 2018 than previous year by 79.05%.
ROI of the company has increased to a large extent in the year 2018 which means that the company is getting enough returns as invested.
The company should increase the current asset.
The company should also strive to expand its business.
The company should also reduce the long-term borrowings.
The company should reduce the cost of management and operations in order to earn more profit.
It should recover its money from defaulters in a limited time.
It should also focus on controlling the non-operation expenses and other expenditures.
To ensure the net profit at higher rate carefully designed risk management systems and should also look forward to customer services and grievances.
To improve this the company should focus on decreasing the costs or expenses. We can divide the expenses into overhead and production costs to understand better expense reduction opportunities.
Financial statements are the lifeline for every organisation. If properly analysed and interpreted, they can tell us about the performance of the making which eventually helps in decision making. They reveal the mystery behind the prevailing loopholes in the company and give us some valuable insights.
I have thoroughly studied the above balance sheet and Profit and loss account of Bhiwadi Cylinders Pvt. Ltd. as on 31st March 2018.
After doing the analysis I came to know that the company was generating profit over the last ten years. This is a good sign for any company which has working in a competitive market, so the company should strive to work hard on it by knowing its strength and loopholes.
The transactions of company according to my notice are within the powers of the company.
Proper books of accounts have been maintained by the company. Everything is been kept in a systematic manner and by law.
Proper returns have been received from the company’s branches.
The balance sheet and profit and loss account are in agreement with the books of accounts.
Now coming to the balance sheet, the company is in its progressive and initial years. It has maintained its profitability over these ten years. There has been a constant increase in the net profit of the company.
Although the company does not have lot of competitors in Rajasthan, so the only focus of the company should be on maintaining the quality of their products. They should not dare to compromise on it.
From ratio analysis of balance sheet of both the years of the company it is concluded that liquidity position of the company is good.
Tally ERP 9.0 has been used for analysing the balance sheet and profit and loss statements of a company.
LIMITATIONS OF THE STUDY
Somewhere or the other it is suffering from the limitations of financial statements.
Price level changes is ignored in financial analysis.
Financial analysis provide misleading result in absence of absolute data.
Lack of exactness in financial statements analysis and interpret.
Lack of comparability in financial statement analysis and interpret.
In some cases the account has to make choice out of various alternatives e.g. choice in the method of depreciation, choice in the method of inventory valuation.
The company has huge scope for contributing to company’s GDP.
Although the performance of the company has lasted well over the years, still it should emphasize on improving its operation to stay in the competitive world.
As the company is having a smooth run, it should increase its market penetration. They should reach out to the other parts of country as well. They should also focus on increasing their production and lowering the prices of their product.
The company is continuously on the path to overcome any threats arising from imports/competition amongst other manufacturers by making the product more competitive in terms of price and quality which has been possible by reducing the input cost or overall price of the product.
Focus on building brand image by increasing customer loyalty. In order to sustain in a competitive world the company should use innovative displays and should also conduct exbhitions to maintain a good rapport with customers.
Nurturing and cultivating highly skilled human work force by motivating and rewarding them.
OTHER COMPANY BALANCE SHEET AND PROFIT AND LOSS ACCOUNT
M/S. RAMA PACKAGING
G1-1281A, RIICO IND. AREA,
BALANCE SHEET as at March 31,2018
AMOUNT AMOUNT AMOUNT
FOR THE L I A B I L I T I E S FOR THE FOR THE A S S E T S FOR THE
PREV. YEAR CURR. YEAR PREV. YEAR CURR. YEAR
CAPITAL A/C : FIXED ASSETS :
54,36,048.81 Op. Balance 59,75,293.91 14,05,920.36 (As per Annexure “A”) 13,93,821.78
3,00,519.27 Additional 1,22,363.10
9,52,562.83 Add.: Net Profit (49,62,641.79)
5,67,000.00 Less : Drawing 2,61,370.00
(36,837.00) Add : Jvvnl Interest & TDS (34,635.00)
1,10,000.00 Less : Income Tax 9,08,280.22 CURR. ASSET, LOANS & ADV.
59,75,293.91 2,22,868.00 Cash in Hand 3,13,026.00
16,24,560.00 Bank of Baroda, Bhiwadi 3,63,094.75
95,947.27 Vijaya Bank 2,05,333.99
74,364.11 HDFC Car Loan – 21,30,255.39 Stock in Hand 44,76,861.46
(As taken & valued and certified
CURR. LIABIL. & PROV. : by the prop.)
6,05,096.00 Sundry Creditors “C ” 6,77,376.90 – Prepaid Insurance(Car) –
3,13,834.00 Expenses Payable “D” 3,60,681.66 8,36,502.00 Sundry Debtors (B) 18,41,856.00
51,643.00 K.L. Datta & Co. 8,383.00 3,463.00 TDS (JVVNL) –
10,46,441.56 2,12,643.00 Vat Recivable 67,333.00
31,172.00 Interest Recivable(JVVNL) –
LOAN & ADVANCE :
4,56,900.00 Security Deposit (E) 5,60,900.00 5,60,900.00
Advance to Suppliers (G) –
FINANCIAL NOTES ” H”
70,20,231.02 **** Total **** 19,54,721.78 70,20,231.02 **** Total **** 19,54,721.78
M/S. RAMA PACKAGING
G1-1281A, RIICO IND. AREA,
MANUFACTURING TRADING & PROFIT LOSS A/C
For the period ending 31st March, 2018
FIGURES FIGURES FIGURES FIGURES
FOR THE PARTICULARS FOR THE FOR THE PARTICULARS FOR THE
PREV. YEAR CURR. YEAR PREV. YEAR CURR. YEAR
14,11,639.32 TO OPENING STOCK 1380265.39 13,80,265.39 11191300.00 BY SALES 34,83,100.00
17,63,100.00 RST 11,25,600.00
TO RAW MATERIAL CONSUMED : 94,28,200.00 CST 23,57,500.00
5,43,101.00 Op. Balance 7,49,990.00 68,95,368.00 GST 72,89,200.00
64,28,366.00 Purchase 61,45,378.00
69,71,467.00 68,95,368.00 BY CLOSING STOCK
7,49,990.00 Less Closing Stock 1380265.39 Finished Goods 44,76,861.46
TO MANUFACTURING EXPENSES :
32,98,550.00 Power & Elc. 35,50,088.00 43,08,531.48
40,050.00 Freight & Cartage 60,800.00
3,20,082.00 Wages 5,31,953.00
35,535.00 Consumable Store 1,40,418.48
15,210.00 E.S.I.C. 25,272.00
12,29,022.07 TO GROSS PROFIT C/d (46,24,203.41)
1,25,71,565.39 79,59,961.46 12571565.39 79,59,961.46
TO ADMINISTRATIVE EXP.
12,000.00 Accounting Charges 24,000.00
1,557.50 Bank Charges 2,159.30 12,29,022.07 TO GROSS PROFIT B/f (46,24,203.41)
2,875.00 BMA,Fees 2,875.00 34,635.00 To Interest Income (JVNL)
5,380.00 Car insurance
3,750.00 Economic Rent 4,286.00 94.00 To Business Adustment13.54
23,875.00 Fes & Taxes 70,614.00
15,950.10 Interest on Car Loan 2,880.89 – To Mis. Income –
– Misc. Expenses
47,550.00 Packaging Material 48,705.00
4,025.00 Printing & Stationary 4,695.00
24,725.00 Professional Fees
Water Expenses 4,248.00
38,050.00 Repair & Maint. 30,075.00
12,850.00 Travelling & Conv. 22,450.00 2,16,988.19
1,18,600.64 To Depreciation 1,21,450.19
9,52,562.83 TO NET PROFIT (49,62,641.79)
12,63,751.07 TOTAL (46,24,203.41) 12,63,751.07 TOTAL (46,24,203.41)
A-131,BHAGAT SINGH COLONY
As on 31st March 2018
FIGURES FIGURES FIGURES FIGURES
FOR THE PARTICULARS FOR THE FOR THE PARTICULARS FOR THE
Pre. YEAR CURR. YEAR Pre. YEAR CURR. YEAR
CAPITAL A/C FIXED ASSETS
10420984.91 As per Annexure “B” 11698403.80 7761245.57 (As per Annexure “A”) 6774023.55
LOAN (LIABILITY) 1321782.25 Investment “E” 1179782.25 1179782.25
215692.00 Ambulance Loan (IDBI) 107356.00 107356.00 157648.30 Cash in Hand 119615.29
3017716.72 Cash at Bank “D” 4989892.81
Current Liabilities & Provision 1614850.00 Deposits (Asset) 357295.50 5466803.60
14625.00 Sundry Creditors”C” 14850.00
Unsecured Loans 1600000.00 NOES ON ACCOUNTS “F”
10651301.91 **** Total **** 13420609.80 12740679.91 **** Total **** 13420609.40
I.M PANDEY. Financial Management New Delhi Vikas publishing house private Ltd. – ninth edition 2004
GST. Indirect Taxation. CA Jitender Diwan
Other data of Bhiwadi Cylinders Private Limited