ffbd assignment ranjeet taloskar new

APPENDIX – 1

Title : Financial Analysis for Titan and Timexwatches manufacturers in India

Subject : Cash Flow and Balance Sheet Analysis as Analyst Decisions

Level / Semester : I / Semester I

Programme : GPBL(MBA) Part Time

Subject Tutor : Prof. Augustine

Name of Student : Mr. Ranjeet B. Taloskar

Student’s Registration Number : GBPT/F10/10

Date of Submission : 22-08-2010

Word Count : 2162 words

Word Limit : 2000 words.

APPENDIX – 2

Student Name Mr. Ranjeet B. Taloskar

Registration Number GBPT/F10/10

Date for submission of the Assignment. 22.08.2010

The cover page is in the correct format as indicated in the Guidelines of writing Assignments

Yes / No

Have done a complete spell – check of the assignment Yes / No

Have done a complete word count for the assignment Yes / No

Does the table of contents include numbers? Yes / No

Are the pages numbered correctly? Yes / No

Are the figures numbered correctly? Yes / No

Are the tables / charts numbered correctly? Yes / No

Are the captions for the tables and charts proper? Yes / No N/A

Are the references / bibliography listed in the assignment? Yes / No

Are the references cited adequately in the text? Yes / No N/A

Are the references in the text in the proper format as indicated in the “Guidelines to writing Assignments”

Yes / No

A soft copy of the assignment has been enclosed with the assignment

Yes / No

All material written in this assignment is my own and I have not used any material, content or information of others claiming them to be mine. Wherever materials have been used, proper citation has been done in the text. I am fully aware of the rules and regulations governing the Plagiarism applicable to the dissertation and should at any point of time my work is suspected / investigated and established to have plagiarized some other work. Am aware of the consequences if such cases are detected and have read the Student Handbook in detail.

Yes / No

Signature of the student Date:

( )

2

Balance sheet, Cash flow, Market Ratios analysis for Titan and Timex watches in India.

3

Table of Contents

1 Market History Details and Current Finance Status as Analyst...................................................61.1 Titan watches.........................................................................................................................61.2 Timex watches.......................................................................................................................81.3 Titan and Timex Cost of Finished Goods For last 3 years.................................................101.4 Volume produced By Titan and Timex India.....................................................................111.5 Average Market Price for Titan and Timex India..............................................................121.6 Total Volume produced by Titan and Timex Compare to market...........................................12

2 Break Even Analysis:.................................................................................................................132.1 Titan Watches India Break-Even Analysis:.........................................................................15

2.1.1 For Year 2008 for Titan Industries...............................................................................152.1.2 For Year 2009 for Titan Industries...............................................................................162.1.3 For Year 2010 for Titan Industries...............................................................................162.1.4 For Year 2008 for Timex Industries.............................................................................172.1.5 For Year 2009 for Timex Industries.............................................................................182.1.6 For Year 2010 for Timex Industries.............................................................................18

3 Ratio - Analysis..........................................................................................................................203.1.1 Ratio Analysis for Titan Industries..............................................................................203.1.2 Ratio Analysis for Timex Industries............................................................................24

References..........................................................................................................................................31

4

Table of Figures

igure 1 1 – Maintaining leadership in domestic marketFigure 1 2 – Financial SnapshotFigure 1 3 – Financial Snapshot for Timex ---8Figure 1 4 – EPS and DPS for Timex---9 Figure 1 5 – Formula for price of finished goods---10Figure 1 6 –Average Market Price for Titan--------12Figure 2 1 – Equation for BEP -----13Figure 2 2 – Equation for BE Sales-------13

Tables

Table 1 1 –price of finished goods for Titan India---------10Table 1 2 –price of finished goods for Timex India--------11Table 1 3 –Volume produced by Titan India-----------------11Table 1 4 –Volume produced by Timex India-----------------11Table 1 5 –Volume produced by Titan(left) and Timex(Right) Watches------12Table 2 1 –Variable and Fixed Cost for Titan India -------------15Table 2 2 –Variable and Fixed Cost for Timex India -----------18

5

1 Market History Details and Current Finance Status as Analyst

1.1 Titan watches

Titan Industries is the world's sixth largest wrist watch manufacturer and India's leading producer of watches under the Titan, Fastrack, Sonata, Nebula, RAGA, Regalia, Octane & Xylys brand names. It is a joint venture between one of India's most respected business organizations, the Tata Group, and the Tamil Nadu Industrial Development Corporation (TIDCO).

Titan Industries has drawn out ambitious growth plans targeting to expand its market share to 75 per cent over the next five years. It currently holds 65 per cent share in the organized watch market of the country. In 2009, around Titan 15 million watches were sold in the country.

The Company proposed to manufacture 2 million digital and ana-digi watches in collaboration with Casio Computer Company of Japan. - In April the Company also issued 5,25,000 - 13.5% securedredeemable partly convertible debentures of Rs 300 each for cash at par.

Profit before tax for the Company grew by 39.4% to Rs. 321.32 crores, while net profit grew by 57.5% over last year to Rs. 250.32 crores.

The year witnessed expansion of the Companies retail network with a net addition of 52 stores (81,267sq.ft.) across Watches, and Eyewear businesses. As on 31st March 2010, the Company has a total of 539 stores, with over 6,85,000 sq. ft of retail space, delivering a retail turnover of Rs. 4,400 crores.

During the year under review, the Company raised a total of Rs.10.43 crores from commercial banks. Borrowings of Rs.110.47 crores were repaid during the year. The Company incurred Rs. 44.16 crores as capital expenditure in respect of refurbishment and expansion programs at manufacturing facilities and retail outlets and in IT Hardware systems. The Companies continued effort at conserving cash and containing capital employed has enabled the company to reduce its borrowings by more than Rs.100 crores and generate net cash inflow of Rs.232 crores.As on 31st March 2010, there were no fixed deposits held by the Company from the public, shareholders and employees other than unclaimed deposits amounting to Rs.0.08 crores.

Titan Industries has reported a sales turnover of Rs 1,252.82 crore and a net profit of Rs 81.28 crore and For the quarter ended Jun 2009 the sales turnover was Rs 882.92 crore and net profit was Rs 46.04 crore.

6

http://en.wikipedia.org/wiki/TIDCO

http://en.wikipedia.org/wiki/India

http://en.wikipedia.org/wiki/Wrist_watch

Figure 1-1 – Maintaining leadership in domestic market

Figure 1-2 – Financial Snapshot

DATE STOCK BSE CODE LAST CLOSE SELL PRICE SL TARGET-I TARGET-II MAX LOSS MIN PROFIT OBSERVATION

20-Aug-10 TITAN IND. 500114 2895.7 2953.85 3045.6 2861 2811.5 - - -

7

1.2 Timex watches

Timex Group USA, Inc. (formerly known as Timex Corporation), a subsidiary of Timex Group B.V., is headquartered in Middlebury, Connecticut. The company is the current day successor to the Waterbury Clock Company, founded in 1854 in nearby Waterbury, Connecticut.

The Comp. was incorporated on 4th October, & received the Certificate of Commencement of Business on 5th January 1989. The Comp. was originally established as a joint venture between Timex Group Limited, Bermuda & Jayna Times Industries Limited, an Indian company. The Timex Jayna Ltd., was set up with the intention to manufacture of components & to assemble, 2 million quartz analog watcher per annum.

On the financial front, total income of the Company grew by 19.2 per cent from Rs.10,517 crores in previous year to Rs. 12,540 crores during 2008-09. The Company posted a Profit after tax (PAT) of Rs. 1,282 crores, compared to Rs. 968 crores in the previous fiscal, a growth of 32 per cent. The Company's earnings before interest depreciation and taxes (EBITDA) margins increased from 13.33 per cent in 2007-08 to 14.16 per cent in2008-09. The improvements on the margins was accomplished through better sales realizations, effective cost rationalization measures which included better control over material cost, marketing cost and overheads, apart from sharp focus on operational efficienciesTimex Group India reported net loss of Rs 2.55 crore in the quarter ended March 2010 as against net loss of Rs 2.01 crore during the previous quarter ended March 2009. Sales rose 14.14% to Rs 27.52 crore in the quarter ended March 2010 as against Rs 24.11 crore during the previous quarter ended March 2009For the audited full year, net profit declined 37.85% to Rs 4.63 crore in the year ended March 2010 as against Rs 7.45 crore during the previous year ended March 2009. Sales rose 4.43% to Rs 135.59 crore in the year ended March 2010 as against Rs 129.84 crore during the previous year ended March2009.

Figure 1-3 – Financial Snapshot for Timex

8

http://en.wikipedia.org/wiki/Waterbury,_Connecticut

http://en.wikipedia.org/wiki/Middlebury,_Connecticut

Figure 1-4 – EPS and DPS for Timex

9

1.3 Titan and Timex Cost of Finished Goods For last 3 years

As described in Fig 1-3 , following method is used to derive Cost of finished goods

Figure 1-5 – Formula for price of finished goods

Table 1-1 –price of finished goods for Titan India

10

From table-1-1 and table 1-2 are indicating Cost of finished goods. Required Info Is collected from Money control website.

Table 1-2 –price of finished goods for Timex India

1.4 Volume produced By Titan and Timex India

Finished Products Mar 2008 Mar-09 Mar-10Product Name

Quantity Quantity Quantity

Watches (million)

11,036,354.00 11,044,932.00 13,012,463.00

Table 1-3 –Volume produced by Titan India

Finished Products Mar-08 Mar-09 Mar-10Product Name

Quantity Quantity Quantity

Watches (Thhousands) 1,663.00 1,757.00 1,691.00

Table 1-4 –Volume produced by Timex India

11

1.5 Average Market Price for Titan and Timex India

Open 865.00High 891.40Low 846.00Last Price 856.05

Figure 1-6 –Average Market Price for Titan

1.6 Total Volume produced by Titan and Timex Compare to market

.

Table 1-5 –Volume produced by Titan(left) and Timex(Right) Watches

12

2 Break Even Analysis:

The break-even point is the point at which revenue is exactly equal to costs. At this point, no profit is made and no losses are incurred. The break-even point can be expressed in terms of unit sales or dollar sales. That is, the break-even units indicate the level of sales that are required to cover costs. Sales above that number result in profit and sales below that number result in a loss. The break-even sales indicate the dollars of gross sales required to break-even. Equation for BEP is defined in Fig2-1and 2-2

Figure 2-1 – Equation for BEP

Figure 2-2 – Equation for BE Sales

Assumptions :

1) Selling price and cost remain constant per unit of output.2) In the short run fixed costs are constant total amount whereas unit cost changes with output

level.

Mathematical Formula – CVP :

Net profit = ( units sold * unit selling price ) – [ ( unit sold * unit variable cost ) + Total fixed cost ]

NP = Px – ( a + bx )

Where NP = Net Profit x = Units Sold P = selling priceb = unit variable cost a = total costBE Point : a + bx = Px – NP

13

BEF = Fixed Cost / Contribution per unit

Unit sold for target profit = ( FC + target profit ) -------------------------

Contribution per unit

Profit volume ratio ( P / V ratio ) = Contribution * 100 ------------------------ Sales

NP = Sales revenue * P/V ratio – Fixed Costs

BEP = FC / P / V Ratio

Margin of Safety = Expected sales – Breakeven Sales

14

2.1 Titan Watches India Break-Even Analysis:

Break even analysis can be done by using Profit and Loss Statement (Annexure-2) Break even analysis has major component for units and Price . I have assumed specific % for Variable cost and Fixed Cost and same details are updated in table 2-1.

Variable cost Fixed cost

Component

% of Total value

2008 2009 2010% of Total

value2008 2009 2010

Raw Materials 100% 2431.79 2940.86 3561.05 0% 0.00 0.00 0.00Power & Fuel Cost 95% 13.205 15.3045 16.5965 5% 0.695 0.8055 0.8735Employee Cost 25% 47.415 58.55 68.91 75% 142.25 175.65 206.73Other Manufacturing Expenses 85% 5.066 7.6415 5.1935 15% 0.894 1.3485 0.9165Selling and Admin Expenses 20% 71.61 85.494 91.738 80% 286.44 341.98 366.95Interest 5% 1.972 3.423 3.176 95% 37.468 65.037 60.344

Total 2571.06 3111.27 3746.664 467.742 584.817 635.816

Years Years

Table 2-1 –Variable and Fixed Cost for Titan India

2.1.1 For Year 2008 for Titan Industries

Total Contribution = Sales – Variable Cost= 3098.20 – 2571.06= 527.14

P/V Ratio = Contribution * 100 / Sales= 527.14 * 100 /3098.20= 17.01 %

B.E.P for Price = Fixed Cost / ( P/V Ratio)= 467.742 / 17.01= 27.49

B.E.P for units = Fixed Cost / ( Contribution / Unit )= 467.742 / 0.00004238= 11036272 Million

Safety Margin = Expected Sale – B.E Sales= 11036354 – 11036272= 82 ( million ) units

15

2.1.2 For Year 2009 for Titan Industries

Total Contribution = Sales – Variable Cost = 3926.09 – 3111.27 = 814.82

P/V Ratio = Contribution * 100 / Sales = 814.82 * 100 / 3926.09 = 20.75 %

B.E.P for Price = Fixed Cost / ( P/V Ratio) = 584.817 / 20.75 = 28.18

B.E.P for units = Fixed Cost / (Contribution / Unit ) = 584.817 / 0.00005 = 11044826 Million units


2.1.3 For Year 2010 for Titan Industries Total Contribution = Sales – Variable Cost

= 4703.12 – 3746.664 = 956.456

P/V Ratio = Contribution * 100 / Sales = 956.456 * 100 / 4703.12 = 20.33 %


16

B.E.P for units = Fixed Cost / (Contribution /Unit ) = 635.816 / 0.000048

= 13012109


Break Even Analysis for Timex India

Variable cost Fixed cost

Component

% of Total value

2008 2009 2010% of Total

value2008 2009 2010

Raw Materials 100% 65.84 65 80.12 0% 0 0 0Power & Fuel Cost 95% 1.4345 1.1495 0.5795 5% 0.0755 0.0605 0.0305Employee Cost 25% 3.8325 3.7625 3.7125 75% 11.4975 11.2875 11.1375Other Manufacturing Expenses 85% 5.066 7.6415 5.1935 15% 0.894 1.3485 0.9165Selling and Admin Expenses 20% 71.61 85.494 91.738 80% 286.44 341.976 366.952Interest 5% 1.972 3.423 3.176 95% 37.468 65.037 60.344

Total 149.755 166.471 184.5195 336.375 419.71 439.3805

Years Years

% of Total value

Year

Table 2-2 –Variable and Fixed Cost for Timex India

2.1.4 For Year 2008 for Timex Industries Total Contribution = Sales – Variable Cost

= 133.29 – 149.75 = 16.46

P/V Ratio = Contribution * 100 / Sales = ( 133.29 – 149.75 ) * 100 / 133.29 = 16.46 * 100 /133.29 = 12.04 %


B.E.P for units = Fixed Cost / ( Contribution / Unit ) = 336.375 / 0.20

= 1642.00 thousand units

17

Safety Margin = Expected Sale – B.E Sales= 1663 – 1642= 21 ( thousands ) units

2.1.5 For Year 2009 for Timex Industries


P/V Ratio = Contribution * 100 / Sales = 34.281 * 100 /132.19 = 25.93 %


B.E.P for units = Fixed Cost / ( Contribution / Unit ) = 419.71 / 0.24 = 1748 thousand Units


2.1.6 For Year 2010 for Timex Industries


P/V Ratio = Contribution * 100 / Sales = 46.86 * 100 /137.66 = 34.04 %

B.E.P for Price = Fixed Cost / ( P/V Ratio) = 439.3805 / 34.04

18

= 12.90

B.E.P for units = Fixed Cost / ( Contribution / Unit ) = 439.38 / 0.26 = 1689.92 thousand units


19

3 Ratio - Analysis

3.1.1 Ratio Analysis for Titan Industries

Ratio Analysis is done by using Balance Sheet of respective Companies.

3.1.1.1 Gross profit ratio = Gross profit * 100 / Sales 2008 = 265.28 * 100 / 3098.20

= 8.56 %

2009 = 346.68 * 100 / 3926.09 = 8.83 %

2010 = 436.30 * 100 / 4703.12 = 9.27 %

Analysis- Continuous increase in GFR indicates that Titan industries is Positive growth by approximate 0.33 %

3.1.1.2 Net profit ratio = PAT * 100 / Sales 2008 = 150.27 * 100 / 3098.20

= 4.85 %

2009 = 158.96 * 100 / 3926.09 = 4.04 %

2010 = 250.32 * 100 / 4703.12 = 5.32 %

3.1.1.3 Liquidity Ratio = Current Asset / Current Liability 2008 = 1280.70 / 694.06

= 1.84

2009 = 1492.42 / 726.65 = 2.05

2010 = 1821.65 / 797.17 = 2.28

20

Analysis – Liquidity Ratio industry recommends as 1:2 . but Titan Industries having ratios as 1: 2.05 and 1 : 2.28 which indicates that Current Assets are not properly managed.

3.1.1.4 Liquid Ratio = ( Current Asset – stock ) / Current Liabilities 2008 = (1280.79 – 1021.09 ) / 916.58

= 0.28

2009 = ( 1492.42 – 1202.69 ) / 1067.44 = 0.27

2010 = ( 1821.65 – 1340.33 ) /1307.02 = 0.36

Analysis - Liquid ratio is highly affected by stock or inventory .Due to less sale stock is stored in Godown and it is affecting liquid ratio for the next year .so stock has to handle by company more effectively.

3.1.1.5 Stock Turnover Ratio = COGS / Inventory 2008 = 3098.20 / 1021.09

= 3.03

2009 = 3926 .09 / 1202.69 = 3.264

2010 = 4703.12 /1340.33 = 3.508

3.1.1.6 Debtors Turnover ratio = Credit Sales / Debtors 2008 = 3098.20 / 96.45

= 32.12 Times Number of Days = 365 / 32.12Number of Days = 11.36 days

2009 = 3926.09 / 106.22= 39.96 Times

Number of Days = 365 / 39.96Number of Days = 9.13 days

2010 = 4703.12 / 93.61= 50.24 Times


21

Analysis – As D.T.R increases Profitability is decreases and sale price increases which can increase loan . so for Titan its decreasing which mean profitability is increasing and sale price is decreasing.

3.1.1.7 Creditors Turnover Ratio = Credit Purchase / Creditors 2008 = 2431.79 / 842.68

= 2.88 Times Number of Days = 365 / 2.88 Number of Days = 126.73

2009 = 2940.86 / 974 = 3.01 Times

Number of Days = 365 / 3.01 Number of Days = 121.26

2010 = 3561.05 / 1172.28 = 3.03 Times


Analysis – As we can observe from above calculation that CTR is decreasing which indicates that titan industries are able to repay and due to this interest amount paid by them is also decreasing which results in Profitability

3.1.1.8 Debt Equity Ratio = Debt / Equity Debt = Security Loans + Unsecured LoansEquity = Shared capital + Reserves and Surplus

2008 = 257.89 / 436.17 = 0.59

2009 = 175.41 / 551.24 = 0.31

2010 = 72.79 / 724.38 = 0.10

Analysis - Due to decrease in Secured and non secured Loan every year This ratio also indicates positive sign for Titan Industries.

3.1.1.9 Working Capital Turnover Ratio = COGS / CWP

2008 = 257.89 / 9.99 = 25.81 Times

22

Number of Days = 365 / 25.81Number of Days = 14.13

2009 = 175.41 / 19.52 = 8.98 Times

Number of Days = 365 / 8.98Number of Days = 40.61

2010 = 72.79 / 12.29 = 5.92 Times


3.1.1.10 Financial Leverage = PBIT / PBT

2008 = 260.89 / 221.45 = 1.17 Times

2009 = 340.77 / 272.31 = 1.25 Times

2010 = 444.92 / 381.40 = 1.16 Times

23

3.1.2 Ratio Analysis for Timex Industries

3.1.2.1 Gross profit ratio = Gross profit * 100 / Sales

2008 = 9.24 * 100 / 133.29 = 6.93 %

2009 = 8.76 * 100 / 132.19 = 6.62 %

2010 = 3.83 * 100 / 137.66 = 2.78 %

Analysis – Timex India has reduced gross profit by 3.84% compare to last year.

3.1.2.2 Net profit ratio = PAT * 100 / Sales 2008 = 5.45 * 100 / 133.29

= 4.08 %

2009 = 7.45 * 100 / 132.19 = 5.63 %

2010 = 4.62 * 100 / 137.66 = 3.35 %

Analysis- Again Negative Sign for Timex , Net profit is decreased by 2.28%

3.1.2.3 Liquidity Ratio = Current Asset / Current Liability 2008 = 74.78 / 48.66

= 1.53

2009 = 90.85 / 45.57 = 1.99

2010 = 106.38 / 57.98 = 1.83

Liquidity ratio as per industry standard is 1:2 and Timex able to manage below 2 as compare to titan industries .that indicates that they are able to manage current asset significantly.

24

3.1.2.4 Liquid Ratio = ( Current Asset – stock ) / Current Liabilities 2008 = ( 74.78 – 19.99 ) / 48.66

= 1.12

2009 = ( 90.85 – 24.87 ) / 45.57 = 1.44

2010 = ( 106.38 – 32.37 ) / 57.98 = 1.27

3.1.2.5 Stock Turnover Ratio = COGS / Inventory 2008 = 133.29 / 19.99

= 6.672009 = 133.19 / 24.87

= 5.352010 = 137.66 / 32.37

= 4.25

3.1.2.6 Creditors Turnover Ratio = Credit Purchase / Creditors

2008 = 65.84 / 48.66 = 1.35 Times


2009 = 65 / 45.57 = 1.42 Times


2010 = 80.12 / 57.98 = 1.38 Times

Number of Days = 365 / 1.38 Number of Days = 264.49 days

Analysis – Timex is Paying high interest rate due CTR. Which can affect their profitability and in turn need more loan .

3.1.2.7 Debtors Turnover ratio = Credit Sales / Debtors 2008 = 133.29 / 49.58

= 2.68 Times Number of Days = 365 / 2.68Number of days = 136.19 days

2009 = 132.19 / 60.3

25

= 2.19 Times Number of Days = 365 / 2.19Number of Days = 166.67 days

2010 = 137.66 / 62.81= 2.19 Times

Number of Days = 365 / 2.19Number of days = 166.67

3.1.2.8 Debt Equity Ratio = Debt / Equity

Debt = Security Loans + Unsecured Loans

Equity = Shared capital + Reserves and Surplus

2008 = 0.45 / 51.42 = 0.00875

2009 = 6.03 / 58.87 = 0.102

2010 = 0 / 60.28 = 0

Conclusion – Titan Industry India is financially well established as compare to Timex

26

Annexure -1 Balance Sheet For Titan.

Titan Industries Balance Sheet of Titan

Industries Mar '08 Mar '09 Mar '10

12 mths 12 mths 12 mths

Sources Of Funds

Total Share Capital 44.39 44.39 44.39

Equity Share Capital 44.39 44.39 44.39

Share Application Money 0 0 0

Preference Share Capital 0 0 0

Reserves 391.78 506.85 679.99

Revaluation Reserves 0 0 0

Networth 436.17 551.24 724.38

Secured Loans 188.11 116.76 72.79

Unsecured Loans 69.78 58.65 0

Total Debt 257.89 175.41 72.79

Total Liabilities 694.06 726.65 797.17

Mar '08 Mar '09 Mar '10


Application Of Funds

Gross Block 558.07 593.04 624.33

Less: Accum. Depreciation 285.61 318.56 361.7

Net Block 272.46 274.48 262.63

Capital Work in Progress 9.99 19.52 12.29

Investments 47.39 7.66 7.63

Inventories 1,021.09 1,202.69 1,340.33

Sundry Debtors 96.45 106.22 93.61

Cash and Bank Balance 51.91 54.69 61.72

Total Current Assets 1,169.45 1,363.60 1,495.66

Loans and Advances 111.34 128.82 200.99

Fixed Deposits 0 0 125

Total CA, Loans & Advances 1,280.79 1,492.42 1,821.65

Deffered Credit 0 0 0

Current Liabilities 842.68 974 1,172.28

Provisions 73.9 93.44 134.74

27

Total CL & Provisions 916.58 1,067.44 1,307.02

Net Current Assets 364.21 424.98 514.63

Miscellaneous Expenses 0 0 0

Total Assets 694.05 726.64 797.18

Contingent Liabilities 58.41 65.46 72.19

Book Value (Rs) 98.26 124.18 163.19

Annexure -2 Profit and Loss statement for TitanProfit & Loss account of Titan

Industries Mar '08 Mar '09 Mar '10


Income

Sales Turnover 3,098.20 3,926.09 4,703.12

Excise Duty 47.35 44.34 28.7

Net Sales 3,050.85 3,881.75 4,674.42

Other Income -4.39 -5.91 8.62

Stock Adjustments 297.89 178.67 111.66

Total Income 3,344.35 4,054.51 4,794.70

Expenditure

Raw Materials 2,431.79 2,940.86 3,561.05

Power & Fuel Cost 13.9 16.11 17.47

Employee Cost 189.66 234.2 275.64

Other Manufacturing Expenses 5.96 8.99 6.11

Selling and Admin Expenses 358.05 427.47 458.69

Miscellaneous Expenses 84.12 86.2 30.86

Preoperative Exp Capitalised -0.02 -0.09 -0.04

Total Expenses 3,083.46 3,713.74 4,349.78

Mar '08 Mar '09 Mar '10


Operating Profit 265.28 346.68 436.3

PBDIT 260.89 340.77 444.92

Interest 39.44 68.46 63.52

PBDT 221.45 272.31 381.4

Depreciation 29.73 41.76 60.08

28

Other Written Off 0 0 0

Profit Before Tax 191.72 230.55 321.32

Extra-ordinary items 2.57 -10.92 -2.92

PBT (Post Extra-ord Items) 194.29 219.63 318.4

Tax 44.02 60.68 68.08

Reported Net Profit 150.27 158.96 250.32

Total Value Addition 651.68 772.88 788.73

Preference Dividend 0 0 0

Equity Dividend 35.51 44.39 66.58

Corporate Dividend Tax 6.04 7.54 11.06

Per share data (annualised)

Shares in issue (lakhs) 443.89 443.89 443.89

Earning Per Share (Rs) 33.85 35.81 56.39

Equity Dividend (%) 80 100 150

Book Value (Rs) 98.26 124.18 163.19

Annexure – 3 balance Sheet For Timex

Timex Group IndiaBalance Sheet of Timex Group

India

Mar '08

Mar '09

Mar '10

12

mths12

mths12

mths

Sources Of Funds




Preference Share Capital 41.1 41.1 41.1

Reserves 0.22 7.67 9.08


Networth 51.42 58.87 60.28

Secured Loans 0 0 0


Total Debt 0.45 6.03 0


Mar '08

Mar '09

Mar '10

12 12 12

29

mths mths mths


Gross Block 61.26 35.54 34.68


Net Block 19.84 14.57 12.76

Capital Work in Progress 0 0.21 0.26

Investments 0 0 0

Inventories 19.99 24.87 32.37

Sundry Debtors 49.58 60.3 62.81


Total Current Assets 74.78 90.85 106.38


Fixed Deposits 4.02 0.02 0

Total CA, Loans & Advances 85.57 101.41 116.36


Current Liabilities 48.66 45.57 57.98

Provisions 4.91 5.72 11.13

Total CL & Provisions 53.57 51.29 69.11

Net Current Assets 32 50.12 47.25


Total Assets 51.84 64.9 60.27


Book Value (Rs) 1.02 1.76 1.9

Annexure -4 Profit and Loss Statement For Timex.

Timex Group IndiaBalance Sheet of Timex Group

India

Mar '08

Mar '09

Mar '10

12

mths12

mths12

mths

Sources Of Funds




Preference Share Capital 41.1 41.1 41.1

Reserves 0.22 7.67 9.08


Networth 51.42 58.87 60.28

30

Secured Loans 0 0 0


Total Debt 0.45 6.03 0


Mar '08

Mar '09

Mar '10

12

mths12

mths12

mths


Gross Block 61.26 35.54 34.68


Net Block 19.84 14.57 12.76

Capital Work in Progress 0 0.21 0.26

Investments 0 0 0

Inventories 19.99 24.87 32.37

Sundry Debtors 49.58 60.3 62.81


Total Current Assets 74.78 90.85 106.38


Fixed Deposits 4.02 0.02 0

Total CA, Loans & Advances 85.57 101.41 116.36


Current Liabilities 48.66 45.57 57.98

Provisions 4.91 5.72 11.13

Total CL & Provisions 53.57 51.29 69.11

Net Current Assets 32 50.12 47.25


Total Assets 51.84 64.9 60.27


Book Value (Rs) 1.02 1.76 1.9

References1) Class notes and Guidance From Ajay Nair2) Accounting and Marketing principle – Books

http://www.principlesofaccounting.com/chapter%2017.htmhttp://www.investopedia.com/terms/a/averagesellingprice.asphttp://money.rediff.com/companies/titan-ltd/10510008/balance-sheethttp://money.rediff.com/companies/timex/10540005/balance-sheet

31

http://money.rediff.com/companies/timex/10540005/balance-sheet

http://money.rediff.com/companies/titan-ltd/10510008/balance-sheet

http://www.investopedia.com/terms/a/averagesellingprice.asp

http://www.principlesofaccounting.com/chapter%2017.htm

ffbd assignment ranjeet taloskar new

Documents