monnet ispat- balance sheet and p&l account analysis

7/30/2019 Monnet Ispat- Balance Sheet and P&L Account Analysis

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Parnamoy Dutta

Roll No. 13

PGDM (IB)

Page | 1

Monnet Ispat & Energy Limited

1. About Monnet Ispat & Energy Limited: Balance Sheet Findings:

Particulars Schedules As On 31.3.2011 As On 31.3.2010

Sources Of Funds

Shareholders' Fundsa) Share Capital 1 643550484 544785934

b) Subscription Against Warrants 0 268825000

c) Reserves & Surplus 2 20257805529 15916860397

Total Shareholders' Funds 20901356013 16730471331

Loan Funds

a) Secured Loans 3 19328739825 12509229901

b) Unsecured Loans 4 7389865655 2440605547

Total Loan Funds 26718605480 14949835448

Deferred Tax Liability 5 1412382096 1319332994

Total 49032343589 32999639773

Application Of Funds

Fixed Assets 6

a) Gross Block 14768678754 14391293879

b) Less Depreciation 3831546879 3108123293

c) Net Block 10937131875 11283170586

Capital Work In Progress 15127362951 7212131953

26064494826 18495302539

Investments 7 5500091128 5454038748

Current Assets, Loans and Advances

a) Inventories 8 3604252692 2188050912

b) Sundry Debtors 9 1897967789 1288661376c) Cash & Bank Balances 10 6881100455 2052422993

d) Loans & Advances 11 8534258318 5898310301

20917579254 11427445582

Less: Current Liabilities & Provisions

a) Current Liabilities 12 2372271669 1803037747

b) Provisions 13 1077549950 758317559

3449821619 2561355306

Net Current Assets 17467757635 8866090276

Misc. Expenditure

Foreign currency monetary Item translation

Difference amount 0 184208212

Total 49032343589 32999639775


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Understanding

Number of equity shares traded in the market

increased as amalgamation of two companies

M/s Mounteverest Trading & Investment

Limited and M/s Monnet Power Limited took

place


3/14

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Understanding

The net reserves and surplus decreased Capital

Redemption Reserve, Capital Reserve, Capital

Reconstruction Reserve, Amalgamation

Reserve and Balance transferred from P&L A/C

decreased whereas Share Premium, GeneralReserve and Debenture Redemption Reserve

increased marginally.

Understanding

Majority of the secured loans were from

foreign financial institutions (ECBs) and i t

increased in the current fiscal year as well.

Loans from banks showed a decrease in

percentage as was loans against non-

convertible bonds.


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-

Understanding

The major rise in this section was that of

unsecured loans from banks which has higher

interest rate. No FCCB's were issued in this

fiscal year as well as unsecured loans from

fully convertible bonds were less.

Understanding

The deffered tax liability increased in the

present fiscal year which suggests that the

business has to pay the amount to the

government. Also the percentage increase has

been low which suggests that the company has

paid much of it taxes to the actual.


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Schedule 6Particulars Schedules As On 31.3.2011 As On 31.3.2010 Percentage of Total (2011) Percentage of Total (2010) Increase / Decrease

Fixed Assets 6

a) Gross Block 14768678754 14391293879

b) Less Depreciation 3831546879 3108123293

c) Net Block 10937131875 11283170586

Capital Work In Progress 15127362951 7212131953

26064494826 18495302539 53.15775857 56.04698313 decrease

Notes

Particulars

As at 01.04.2010Acquired on

AmalgamationAdditions Adjustments as at 31.03.2011 As at 31.03.2011

Land & Site Development 253688145 0 1409912 0 255098057

Lease Hold Land (mining) 95003388 0 0 0 95003388

Railway Siding 181077121 0 197758 0 181274879

Building 1567423853 0 80561652 0 1647985505

Plant & Machinery 12079238480 0 293831504 8689967 12364380017

Furnitures & Fixtures 67014762 0 3193030 0 70207792

Vehicles 147848130 0 17887613 11006627 154729116

Current Year 14391293879 0 397081469 19696594 14768678754

Previuos Year 13664534313 172801400 562040854 8082688 14391293879

Gross Block

Upto the yearAcquired on

Amalgamation

Additions Adjustments as at 31.03.2011 As at 31.03.2011 As at 31.03.2011 As at 31.03.2010

0 0 0 0 0 255098057 253688145 2.33240359 2.2483764 increase

7217171 0 1563321 0 8780492 86222896 87786217 0.78835015 0.77802792 increase

13902438 0 8606415 0 22508853 158766026 167174683 1.45162395 1.48162861 decrease

219735785 0 53127524 0 272863309 1375122196 1347688068 12.572969 11.944232 increase

2801976790 0 657043735 7192345 3451828180 8912551837 9277261690 81.4889309 82.2221167 decrease

12563740 0 4413030 0 16976770 53231022 54451022 0.48670001 0.48258618 increase

52727368 0 14452796 8590889 58589275 96139841 95120761 0.87902242 0.8430322 increase

3108123292 0 739206821 15783234 3831546879 10937131875 11283170586

2395679916 1491494 716834340 5882457 3108123293 11283170586 11268854397

Increase

/

Decrease

Depreciation Net Block Percentage

of Total

2011

Percentage

of Total

2010

Understanding

Majority of the fixed assets are Plant &Machinery. Although as a percentage of total

for the respective year it shows a decrease

while the percentage increased in the case of

Land, mining land, vehicles etc. SLM

depreciation method is used majorly except

for one plant where WDV method is followed.

The total assets of the company increased but

not as percentage of the total application of

that years fund. The company might have

focussed on other areas for application of its

funds.


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Understanding

The absolute value of unquoted equity shares

in subsidiary companies increased as the

company took shares of Chattel Construction,

Chomal Exports, Monnet Daniel CoalWasheries and Monnet Enterprises PTE. The

company was more interested in buying

unquoted shares of other companies. In case

of Non-convertible debentures the debenture

with tata motor finance either got matured or

was liquidated. Also several quoted

investments in the form of mutual funds like

Reliance growth fund, Prudential ICICI, DSP

Meryll Lynch, DSMPL Balanced Fund, Uti Nifty

Index etc were realised. The company also

invested in Amtek India Ltd and Ashoke

Layland Ltd. The capital contribution to

Partnership firm also decreased in the year.

The Company focussed on Equity shares

through portfolio management schemes

where the investment showed an increase.


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Understanding

Inventories are evaluated by FIFO method.

Raw materials constitute of the majority of the

Inventories. The company streched its

production. Finished and semifinished goods

shows an increase which is good for the

company to meets the demand.

Understanding

The doubtful debts decreased which is a good

sign for the company as its debtors are

responsible and will not cause much of a

problem in the business.


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Understanding

The cash and bank balances of the increase by

a good margin thereby proving the goodbusiness. The company showed more trust in

foreign banks owing to their competitve

interest rates.

Understanding

Loans to subsidiary companies increased

considerably. Also refundable amount of

money lying with the excise deptt increased.

The company also paid extra advance income

tax for tax benefits. Other prepaid expensesalso decreased.


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Understanding

The current liabilities showed an overall

increase as security deposits and interest

accrued increased. Also the business owns to

big industries and Capital projects due to

which Current liabilities increased. Increase of

current liability is not a good sign for the

company. But the company has back-up cashand bank balances to support it.

Understanding

The company set aside a greater amount of

provision for Tax by estimating it from its

profits.The proposed dividend is more in

absolute terms but its share in provision is less

which means that company is reserving more

for its l iabilities towards the government.


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Profit And Loss Statement Findings:Particulars Schedules As On 31.3.2011 As On 31.3.2010

Income

Sales 20084155462 20379388488

Less: Interdivision Transfers 3135375696 4710607998

16948779766 15668780490

Less: Excise Duty on Sales 1218286484 861828216

15730493282 14806952274

Other Income 14 293217203 317501275

Total Income 16023710485 15124453549

Expenditure

Material, Manufacturing & Others 15 13251081439 13212906242

Less: Inter division transfers 3135375696 4710607998

10115705743 8502298244

Increase/Decrease in Stocks 16 -436952935 218960854

Salaries,Wages & Amenities 17 746286380 733031378

Repair & Maintenance 18 119369656 91789072

Administrative, Selling & Other Exp 19 688147319 620835804

Financial Charges 20 437207331 927884981

Depreciation 738638106 716655305

Total Expenditure 12408401600 11811455638

Profit Before Tax 3615308885 3312997911

Current Tax/Mat Payable 722800000 547400000

Mat Credit Entitlement -19125089 -123543793

Deferred Tax Expense 93049100 179810846

Income Tax Adjustment 7008239 18287055

Total Tax Expenses 803732250 621954108

Profit After Tax 2811576635 2691043803

Balance as per last year 8067514099 6036553393

Balance b/f on Amalgamation 0 116427216

Profit available for appropiation 10879090734 8844024412

Appropriations

Transfer to general reserve 282000000 270000000

Tranfer to debenture redemption reserve 315026053 172048961

Dividend

Proposed dividend equity shares 321689035 285876620

Differential Dividend on equity shares 25030355 0

Corporate Dividend Tax 52186004 48584732

Total Appropiations 995931447 776510313

Balance carried to balance sheet 9883159287 8067514099


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Understanding

The income due to rent and interest increased.

Profits on sale of investments and dividend

received decreased drastically. This can be

attributed lower performance of stocks in which

the company invested.

Understanding

Lesser amount of raw material and power & fuel

were consumed but as net profits increased we

might say that the manufacturing efficiency of the

plant increased


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Understanding

The closing stock suggests that there is a increase

of stocks in godowns of the company hence it

suggests that there was positive growth in

production process.

Understanding

The increasing number of employees owing to

expansion led to an overall increase expenses on

salaries,wages and greater emphasis was given to

employee welfare


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UnderstandingThe company put more emphasis on maintaining its

machinery for efficient performance.


14/14

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Understanding

Marketing constitutes majority of this type of

expense. Auditors remuneration also increased

during this fiscal year. Important to note that losses

from partnership firm also reduced in the current

Fiscal Year.

Understanding

Interest paid for loans is the major expense under

this category. The total expense on this category

reduced as all the expense in individual category

reduced.

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