Reformulated Income Statement of Century Ply

Values in Rs. Lakhs 2016 2015 2014

Operating Revenue
Gross Revenue from Operations 179,822.40 171,508.38 145,426.63
Less : Excise Duty 13,452.48 12,664.24 10,661.06
Net Revenue from Operations 166,369.92 158,844.14 134,765.57
Cost of Materials Consumed -68,551.52 -75,031.89 -69,517.25
Gross Margin 97,818.40 83,812.25 65,248.32
Operating Expenses
Purchase of Stock-in-Trade 14,405.96 13,870.52 9,434.34
Changes in inventories of Finished Goods, Work-in-
-1,042.70 -4,632.50 -670.12
Progress and Stock in trade
Employee Benefits Expense 23,905.40 20,091.55 16,123.27
Depreciation and Amortisation Expense 4,836.91 4,847.40 3,871.01
Deferred Tax -665.65 -533.34 -323.17
Other Expenses 31,668.53 28,895.39 24,539.20
Operating Income from sales (before tax) 24,709.95 21,273.23 12,273.79
Taxes
Current Tax 4,308.76 3,908.60 1,560.65
Less: MAT credit entitlement -643.70 -415.22 -1,284.56
(Add)/Less: MAT credit entitlement/(reversal) in
6.54 - -
respect of earlier years
Total Tax Expenses -3,671.60 -3,493.38 -276.09
Tax on other operating income (expense) 191.56 559.51 45.18
Tax on financial items (benefit) -1,657.71 -1,522.86 -2,005.05
Operating income from sales (after tax) 19,572.20 16,816.49 10,037.83
Other operating income (Note 22) 553.63 1,617.07 130.58
Tax on other income -191.56 -559.51 -45.18
Operating income 19,934.27 17,874.06 10,123.23
Financial Income
Interest Income (Note 22) 23.88 155.72 239.16
Interest Expense (Note 28) -2,702.98 -3,252.99 -2,964.54
Finance cost (Note 28) -2,111.96 -1,304.07 -3,069.55
Tax effect (Tax benefit) 1,657.71 1,522.86 2,005.05
Net Finance Income after tax -3,133.35 -2,878.48 -3,789.88
-Minority Interest -80.82 -85.47 -313.21
Add: Proportionate share of Profit/(Loss) in
0 -13.47 6.29
associates
Comprehensive Income 16,720.10 14,896.64 6,026.43

Century Plys Income statement saw major changes in 2015 as compared to 2014. The reasons for which are as follows:

Century Ply introduced the strategy of releasing working capital stress by manufacturing as per customer
requirements with complete dealer ownership. This lead to an increase in purchase of stock-in-trade by 47% in
2015 as compared to 2014. This new strategy led to an 18% increase in sales in 2015.
Employee benefits expenses increased by 19% from 2015 to 2016 and by 25% from 2014 to 2015. There was an
increase in gratuity fund which was NIL in 2014.
 There was a huge increase of 1138.37% in other operating income from 2014 to 2015 due to one-time income
from profit on sale of fixed assets and foreign exchange fluctuations.

The above 3 factors in particular led to 147.2% increase in comprehensive income in 2015 which turned around the
company.

Traditional DuPont
Ratios 2016 2015 2014
NI/Sales 10.05% 9.38% 4.47%
Sales/Total Assets 1.41 1.49 1.32
Total Assets/Beg. Equity 3.03 3.64 4.00
ROE 42.94% 50.83% 23.56%

Modified DuPont
Ratios 2016 2015 2014
Profit Margin 11.98% 11.25% 7.51%
ATR 3.64 4.56 3.58
RNOA 0.44 0.51 0.27
FLEV -0.16 -0.12 0.23
NFA/CSE 0.16 0.12 -0.23
NBC -0.37 -0.62 0.53
RNFA -0.37 -0.62 0.53
ROE 31.0% 38.0% 20.8%