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A Report on Financial Analysis of BHARTI AIRTEL LTD.

Prepared By: - JEET DHANAK


ROLL NO.: - 11709
INDEX

1. INTRODUCTION

2. RATIO ANALYSIS

3. HORIZONTAL ANALYSIS

4. VERTICAL ANALYSIS

5. TREND ANALYSIS
INTRODUCTION

Sunil Bharti Mittal founded the Bharti Group. In 1983, Sunil Mittal was into an agreement with Germany's
Siemens to manufacture the company's push-button telephone models for the Indian market. In 1986, Sunil
Bharti Mittal incorporated Bharti Telecom Limited (BTL) and his company became the first in India to offer
push-button telephones, establishing the basis of Bharti Enterprises. This first-mover advantage allowed Sunil
Mittal to expand his manufacturing capacity elsewhere in the telecommunications market. By the early 1990s,
Sunil Mittal had also launched the country's first fax machines and its first cordless telephones. In 1992, Sunil
Mittal won a bid to build a cellular phone network in Delhi. In 1995, Sunil Mittal incorporated the cellular
operations as Bharti Tele-Ventures and launched service in Delhi. In 1996, cellular service was extended to
Himachal Pradesh. In 1999, Bharti Enterprises acquired control of JT Holdings, and extended cellular
operations to Karnataka and Andhra Pradesh. In 2000, Bharti acquired control of Sky cell Communications,
in Chennai. In 2001, the company acquired control of Spice Cell in Calcutta. Bharti Enterprises went public
in 2002, and the company was listed on Bombay Stock Exchange and National Stock Exchange of India. In
2003, the cellular phone operations were rebranded under the single Airtel brand. In 2004, Bharti acquired
control of Hexagon and entered Rajasthan. In 2005, Bharti extended its network to Andaman and
Nicobar.’2009; Airtel launched its first international mobile network in Sri Lanka. In 2010, Airtel began
operating in Bangladesh.

Today, Airtel is the largest cellular service provider in India and fifth largest in the world
The organizational structure that existed till recently concentrated on the hierarchy of the operations (not
services) inside the company as a whole. The structure depicts the corresponding operation/region of different
in-charges and hence it didn't hold anyone responsible for each of its services. So, the company found it better
to restructure its organizational chart and it came into implementation from 1 August. The transformed
organizational structure will have two distinct Customer Business Units (CBU) with clear focus on B2C
(Business to Customer) and B2B (Business to Business) segments. Bharti Airtel's B2C business unit will
comprehensively service the retail consumers, homes and small offices, by combining the erstwhile business
units – Mobile, Telemedia, Digital TV, and other emerging businesses (like M-commerce, M-health, M-
advertising etc.). The B2C organization will consist of Consumer Business and Market Operations.
RATIO ANALYSIS

 TYPES OF RATIOS
1. Liquidity Ratios
2. Solvency Ratios
3. Efficiency or Turnover Ratios
4. Profitability Ratios

1.Liquidity Ratios
i. Current Ratio
ii. Quick or Acid Test Ratio
2.Solvency Ratios
i. Debt-equity ratio
ii. Total asset to debt ratio
3.Turnover Ratios
i. Debtors Turnover Ratio
ii. Inventory Turnover Ratio
iii. Working Capital turnover Ratio
iv. Fixed Asset Turnover Ratio
4.Profitability Ratios
i. PBDIT Ratio
ii. PBIT Ratio
iii. PBT Ratio

iv. PAT Ratio


5.Return on Investment Ratios
i. P/E Ratio
ii. Earnings per Share
iii. Return on Capital Employed
1.1 Current Ratio (Working Capital Ratio)

= Current Assets
Current Liabilities
YEAR CURRENT CURRENT RATIO
ASSETS LIABILITIES
2006-07 8439.39 11,066.25 0.76
2007-08 10466.63 14,342.47 0.72
2008-09 10021.39 14,376.76 0.69
2009-10 13730.10 13,510.98 1.01
2010-11 23957.90 16,861.30 1.42
2011-12 14,043.60 19,164.70 0.73
2012-13 6,203.80 19,425.70 0.31
2013-14 6,738.80 19,108.00 0.35
2014-15 14,756.40 23,051.50 0.64
2015-16 11,405.70 27,891.80 0.40
2016-17 17,670.90 34,920.40 0.50
.
ANALYSIS: The ratio since 2007 is at 0.76 which at some point reaches highest at 1.42 in 2011 and
then is on a downward trend until current year where it is 0.50.Also in this period there is not any
sudden increase or decrease in upward or downward trend.

INTERPRETATION: From the above table we can indicate that the current assets are very less compared
to current liability of the company. The company doesn’t have enough current assets in meeting their
liabilities. So, the company can’t meet immediate emergencies.

The company needs to increase current assets in order to meet its short-term obligation. We can conclude that
the ratio isn’t favorable as the current asset is less than the current liabilities and also less than ideal ratio.
1.2 Quick (Acid Test or Liquid) Ratio:
= Quick Assets
Current Liabilities

YEAR QUICK ASSETS CURRENT RATIO


LIABILITIES
2006-07 2198.98 11,066.25 0.19
2007-08 3279.40 14,342.47 0.22
2008-09 4801.65 14,376.76 0.33
2009-10 2921.72 13,510.98 0.21
2010-11 1595.10 16,861.30 0.09
2011-12 2615.70 19,164.70 0.13
2012-13 2609.50 19,425.70 0.13
2013-14 3601.50 19,108.00 0.18
2014-15 3699.70 23,051.50 0.16
2015-16 3845.10 27,891.80 0.13
2016-17 3320.50 34,920.40 0.09

ANALYSIS: The quick ratio of the company for the year 2007-08 is 0.19, 2008-09 is 0.22, 2009-10 is 0.33,
2010-11 is 0.21, and 2011-12 is 0.09. The quick ratio has increased by 15.78 % in the year 2008-09 and the
year 2009-10 is increased by 50% there is decreased value found by -36.36% for the year 2010-11 and
decreased by 57.14% in the year 2011-12

INTERPRETATION: As per as quick ratio is concern whether a firm has enough short-term assets to cover
its immediate liabilities without selling inventory. Here, Bharti Airtel review that in 2008-09 increase their
assets and then after very small percentage increase. That point of Time it has not enough asset to cover its
liabilities. Ideal ratio is 1.5 so it is below the ratio. This is not good for company and it should be improving
that point.
1.3 Debtors Turnover Ratio
= Credit Sales
Avg. Debtors

YEAR CREDIT SALES AVG. DEBTORS RATIO


2006-07 17,960.11 1,418.52 12.66
2007-08 25,868.23 2,776.46 9.31
2008-09 32,809.46 2,550.05 12.86
2009-10 36,776.73 2,104.98 17.47
2010-11 38,338.90 1,461.90 26.22
2011-12 42,228.50 2,134.50 19.78
2012-13 46,814.00 2,246.80 20.83
2013-14 50,771.90 2165.50 23.44
2014-15 60,689.40 3,311.00 18.32
2015-16 61,785.80 3,793.00 16.28
2016-17 62,460.60 3,211.80 19.44

ANALYSIS: The debtors turnover ratio of the company for the year 2007-08 is 12.66 times, 2008-09 is 9.31
times, 2009-10 is 12.86 times, 2010-11 is 17.47 times, and 2011-12 is 26.22 times the debtors turnover ratio
has decreased by 26.30% in the year 2008-09, and in 2009-10 it increased by 38.13%. There was increase
positive value is found by 35.84% in year 2010-11 and increased by 50.08% in the year 2011-12.

INTERPRETATION: Higher turnover signifies speedy and effective collection. Lower turnover indicates
sluggish and inefficient collection leading to the doubts that receivables might contain significant doubtful
debts. Receivables collection period is expressed in number of days. Here the company in 1 st year 1month to
collection & after decline then after increase. Company does not maintain lower collection period.
1.4 INVENTORY TURNOVER RATIO
NET SALES
AVG INVENTORY

YEAR NET AVG RATIO


SALES INVENTORY
2006-07 17,960.11 48.10529 373.35
2007-08 25,868.23 57.0967 453.06
2008-09 32,809.46 59.88986 547.83
2009-10 36,776.73 28.1372 1,307.05
2010-11 38,338.90 34.6905 1,105.17
2011-12 42,228.50 32.58196 1,296.07
2012-13 46,814.00 2.167749 21,595.67
2013-14 50,771.90 1.118806 45,380.45
2014-15 60,689.40 10.2796 5,903.87
2015-16 61,785.80 5.430573 11,377.40
2016-17 62,460.60 3.911542 15,968.28

ANALYSIS: - The ratio is on a upward trend and is rising continuously from 373.35 in 2007-08 to
15968.28 in 2017-18. The increase is at constant rate but has increased suddenly in 2010 -11 by 138%.

INTERPRETATION: - This ratio indicates how much stock is used up for sales where in high ratio is
preferred which shows the stock is utilised effectively. But also very high ratio means there are lost
sales where there is not enough stock to meet the demand.
1.5 EARNINGS PER SHARE
PAT
No. Equity Shares
YEAR PAT No. Equity Shares RATIO
2006-07 4,023.31 189.15 21.27
2007-08 6,304.86 191.63 32.90
2008-09 7,789.98 190.9777 40.79
2009-10 9,476.93 381.8263 24.82
2010-11 7,716.90 379.7687 20.32
2011-12 5,730.00 379.7217 15.09
2012-13 5,096.30 379.7541 13.42
2013-14 6,600.20 395.4584 16.69
2014-15 13,200.50 399.7729 33.02
2015-16 7,546.50 399.7087 18.88
2016-17 -9925.60 399.5813 -24.84

ANALYSIS: The earnings per share of the company for the year 2008-09 is 32.90, 2009-10 is 40.79, and
2010-11 is 24.82, 2011-12 is 20.32, and 2012.13is 15.09. The earnings per share has increased by 54.67% in
the year 2008-09, and by 23.98% in the year 2009-10 and decreased by 39.15% in the year 2010-11 and again
decreased by 18.13% in the year 2011-12.

INTERPRETATION: - As per as EPS ratio is concern the portion of a company's profit allocated to each
outstanding share of common stock. Earnings per share serve as an indicator of a company’s profitability.
Here the company shows high profitability so it is good for company as well as investor.
1.5 Return on Capital Employed
PBIT
Capital Employed

YEAR PBIT CAPITAL EMPLOYED RATIO


2006-07 4,590.09 19125.38 0.24
2007-08 6,937.29 30162.13 0.23
2008-09 8,111.76 38627.43 0.21
2009-10 10,654.80 48430.91 0.22
2010-11 8,725.80 62327.14 0.14
2011-12 6,956.20 74797.85 0.09
2012-13 6,454.80 87227.03 0.07
2013-14 8,584.50 103427.7 0.08
2014-15 15,655.30 122307 0.128
2015-16 10,719.70 190742 0.056
2016-17 8,761.30 -137756 -0.06

ANALYSIS: - The return on capital employed of the company for the year 2007-08 is 0.24, 2008-09 is 0.23,
and 2009-10 is 0.21, 2010-11 is 0.22 and 2011-12 is 0.14. The return on capital employed has increased by
14.28% in the year 2014-15, and increased by 50% in the year 2015-16 and decreased by 56.25 % in the year
2016-17 and again decreased by-207% in the year 2017-18.

INTERPRETATION: - It is expressed as a percentage and can be very revealing about the industry a
company operates in, the skills of the management and occasionally the general business climate. Here, the
company continuous increases efficiency. It is good for the company.
1.6 Debt Equity Ratio
Long Term Debt
Share Holder Fund

YEAR Long Term Debt Share Holder Fund RATIO

2006-07 11,413.27 24283.55 0.47


2007-08 20,183.86 61163.21 0.33
2008-09 27,527.75 98313.39 0.28
2009-10 36,551.09 261079.2 0.14
2010-11 44,111.60 191789.6 0.23
2011-12 49,429.60 170446.9 0.29
2012-13 54,146.20 225609.2 0.24
2013-14 66,728.00 513292.3 0.13
2014-15 78,272.90 301049.6 0.26
2015-16 84,446.80 168893.6 0.5
2016-17 1,01,207.30 180727.3 0.56

ANALYSIS: - The debt equity ratio of the company for the year 2007-08 is 0.47, 2008-09 is 0.33, and 2009-
10 is 0.28, 2010-11 is 0.14, and 2011-12 is 0.23. The debt equity ratio has decreased by 29.78% in the year
2008-09, and decreased by 15.15% in the year 2009-10, decreased by 50% in the year 2010-11 and again
decreased by 64.28% in the year 2011-12

INTERPRETATION: A measure of a company's financial leverage calculated by dividing its total


liabilities by stockholders' equity. It indicates what proportion of equity and debt the company is using to
finance its assets. Here the company ratio so good in the current situation as to the previous years. This is good
for the company.
1.7 Total Asset to Debt Ratio
Total Asset
Long Term Debt

YEAR TOTAL Long Term RATIO


ASSETS Debt
2006-07 27,796.74 11,413.27 2.435476
2007-08 41,174.17 20,183.86 2.039955
2008-09 49,824.50 27,527.75 1.809974
2009-10 55,414.40 36,551.09 1.516081
2010-11 71,582.60 44,111.60 1.622761
2011-12 80,323.70 49,429.60 1.625012
2012-13 87,883.20 54,146.20 1.623072
2013-14 98,204.10 66,728.00 1.471708
2014-15 1,26,423.70 78,272.90 1.615166
2015-16 1,61,938.80 84,446.80 1.917643
2016-17 1,90,741.60 1,01,207.30 1.884662

ANALYSIS: - The total assets to debt ratio of the company for the year 2007-08 is2.43, 2008-09 is 2.03, and
2009-10 is 1.80, 2010-11 is 1.51, and 2011-12 is 1.62. The total asset ratio has decreased by 16.46% in the
year 2008-09, and decreased by 11.33% in the year 2009-10 and decreased by 16.11% in the year 2010-11
and increased by7.28% in the year 2011-12.

INTERPRETATION: - : As per the total asset to debt ratio is concern ratio between asset & long term
debt is consisdered. In the ratio total asset more than long term debt. So here company total asset is
high in 2009-10 but company can’t maintain that so improve that point is actually it is good.
1.8 Fixed Assets Turnover Ratio
Net Sales
Net Block of Fixed Asset
YEAR NET FIXED RATIO
SALES ASSETS
2006-07 17,851.61 21,681.45 0.823359
2007-08 25,761.11 21,781.73 1.182693
2008-09 34,048.32 27,580.03 1.234528
2009-10 35,609.54 29,619.70 1.202225
2010-11 38,017.70 47,179.90 0.805803
2011-12 41,603.80 44,907.30 0.926437
2012-13 45,350.90 44,213.40 1.025727
2013-14 49,918.50 41,122.40 1.2139
2014-15 55,496.40 62,511.30 0.887782
2015-16 60,300.20 95,611.10 0.630682
2016-17 62,276.30 1,21,123.00 0.514158

ANALYSIS: - The fixed asset turnover ratio of the company for the year 2007-08 is 0.82, 2008-09 is 1.18,
and 2009-10 is 1.23, 2010-11 is 1.20, and 2011-12 is 0.80. The fixed asset turnover ratio has increased by
43.90% in the year 2008-09, and increased by 4.23% in the year 2009-10 and decreased by 2.43% in the year
2010-11 and decreased by 33.33% in the year 2011-12.

INTERPRETATION: - Ratio measures a company's ability to generate net sales from fixed-asset
investments - specifically property, plant and equipment (PP&E) - net of depreciation. A higher fixed-asset
turnover ratio shows that the company has been more effective in using the investment in fixed assets to
generate revenues. Here the company’s decline the use of the asset continues decline. This is not good for the
company.
1.8 Working Capital Turnover Ratio
Net Sales
Working Capital

YEAR NET WORKING RATIO


SALES CAPITAL
2006-07 17,851.61 -5,803.18 -3.07618
2007-08 25,761.11 -6,339.38 -4.06366
2008-09 34,048.32 -4,951.75 -6.87602
2009-10 35,609.54 -4,285.90 -8.30853
2010-11 38,017.70 -11,550.80 -3.29135
2011-12 41,603.80 -5,121.10 -8.124
2012-13 45,350.90 -13,221.90 -3.42998
2013-14 49,918.50 -12,369.20 -4.03571
2014-15 55,496.40 -8,295.10 -6.69026
2015-16 60,300.20 -16,486.10 -3.65764
2016-17 62,276.30 -17,249.50 -3.61032

ANALYSIS: - The working capital turnover ratio of the company for the year 2007-08 is -3.07, 2008-09 is -
4.06, and 2009-10 is -6.87, 2010-11 is -8.30, and 2011-12 is 3.29. The working capital turnover ratio has
decreased by 32.24% in the year 2008-09, and decreased by 69.21% in the year 2009-10 and again decreased
by 22.05% in the year 2010-11 and increased by 61.44% in the year 2011-12.

INTERPRETATION: - The working capital turnover ratio concern to increasing ratio indicates that working
capital is more active; it is supporting, comparatively, higher level of production and sales; it is being used
more intensively. Here company is not performing well due to negative working capital. This is not good for
company
1.9 PBDIT Ratio
PBDIT x 100
Net Sales

YEAR PBDIT NET RATIO


SALES
2006-07 7149.57 17,851.61 40.05
2007-08 10319.9 25,761.11 40.06
2008-09 11532.17 34,048.32 33.87
2009-10 14660.45 35,609.54 41.17
2010-11 13659.76 38,017.70 35.93
2011-12 14265.94 41,603.80 34.29
2012-13 14929.52 45,350.90 32.92
2013-14 17152 49,918.50 34.36
2014-15 24623.75 55,496.40 44.37
2015-16 23818.58 60,300.20 39.5
2016-17 23876.73 62,276.30 38.34

ANALYSIS: The PBDIT ratio of the company for the year 2007-08 is 40.05%, 2008-09 is 40.06%, and 2009-
10 is 33.87%, 2010-11 is 41.17%, and 2011-12 is 35.53%. The PBDIT ratio has decreased by 15.45% in the
year 2009-10 and increased by 21.55% in the year 2010-11 and decreased by 12.72% in the year 2011-12 and
again decreased by 4.56% in the year 2012-13.

INTERPRETATION: Financial metric used to assess a company's profitability by comparing its revenue
with earnings. More specifically, since PBDIT is derived from revenue, this metric would indicate the
percentage of a company is remaining after operating expenses. Here high ratio indicate good position in
market this is good for company
1.10 PBIT or Operating Profit Ratio
PBIT x 100
Net Sales

YEAR PBIT NET RATIO


SALES
2006-07 4796.728 17,851.61 26.87
2007-08 7153.86 25,761.11 27.77
2008-09 8328.219 34,048.32 24.46
2009-10 10768.32 35,609.54 30.24
2010-11 9048.213 38,017.70 23.8
2011-12 8349.883 41,603.80 20.07
2012-13 8104.206 45,350.90 17.87
2013-14 9918.806 49,918.50 19.87
2014-15 17059.59 55,496.40 30.74
2015-16 14273.06 60,300.20 23.67
2016-17 11670.58 62,276.30 18.74

ANALYSIS: The PBIT ratio of the company for the year 2007-08 is 26.87%, 2008-09 is 27.77%, and 2009-
10 is 24.46%, 2010-11 is 30.24%, and 2011-12 is 23.80%. The PBIT ratio has decreased by 11.91% in the
year 2009-10, and increased by 23.63% in the year 2010-11, decreased by 21.29% in the year 2011-12 and
decreased by 15.67% in the year 2012-13

INTERPRETATION: As per as ratio is concern a higher operating margin means that the company has less
financial risk. Here company has average high ratio so the company is a good position.
1.11 PBT Ratio
PBT x 100
Net Sales

YEAR PBT NET RATIO


SALES
2006-07 4589.649 17,851.61 25.71
2007-08 6934.891 25,761.11 26.92
2008-09 8110.31 34,048.32 23.82
2009-10 10654.37 35,609.54 29.92
2010-11 8725.062 38,017.70 22.95
2011-12 6956.155 41,603.80 16.72
2012-13 6453.433 45,350.90 14.23
2013-14 8376.324 49,918.50 16.78
2014-15 15649.98 55,496.40 28.2
2015-16 10033.95 60,300.20 16.64
2016-17 -8506.94 62,276.30 -13.66

ANALYSIS: The PBIT ratio of the company for the year 2007-08 is 25.71%, 2008-09 is 26.92%, and 2009-
10 is 23.82%, 2010-11 is 29.92% and 2011-12 is 22.95%. The PBT ratio has decreased by 11.51% in the year
2009-10, and increased by 25.60% in the year 2010-11 and again decreased by 23.29% in the year 2011-12
and decreased by 27.18% in the year 2012-13.

INTERPRETATION: As per as ratio is concern a higher interest margin means that the company has less
financial risk. Here company has average high ratio so the company is a good position.
1.12 Net Profit Ratio
Net Profit x 100
Net Sales

YEAR NET NET RATIO


PROFIT SALES
2006-07 4032.679 17,851.61 22.59
2007-08 6241.917 25,761.11 24.23
2008-09 7742.588 34,048.32 22.74
2009-10 9425.845 35,609.54 26.47
2010-11 7713.791 38,017.70 20.29
2011-12 5728.843 41,603.80 13.77
2012-13 5092.906 45,350.90 11.23
2013-14 6599.226 49,918.50 13.22
2014-15 13197.04 55,496.40 23.78
2015-16 7543.555 60,300.20 12.51
2016-17 -9920.61 62,276.30 -15.93

ANALYSIS: The net profit ratio of the company for the year 2007-08 is 22.59%, 2008-09 is 24.23%, and
2009-10 is 22.74%, 2010-11 is 26.47% and 2011-12 is 20.29%. The net profit ratio has decreased by 6.09%
in the year 2009-10, and increased by 16.40% in the year 2010-11 and decreased by 23.34% in the year
2011-12 and decreased by 32.13% in the year 2012-13.

INTERPRETATION: This ratio is a measure of the overall profitability net profit is arrived at after taking
into accounts both the operating and non-operating items of incomes and expenses. The ratio indicates what
portion of the net sales is left for the owners after all expenses have been met. Here the company high profit
in year 2009-10 then decline. This is not good for company. Company should be maintaining the NP ratio
1.13 Price Earnings Ratio
Market Price of a Share
Earnings per Share

YEAR Market Price of Earnings per RATIO(%)


Share
a Share
2006-07 709 21.27 33.33333
2007-08 822.5 32.9 25
2008-09 582.7143 40.79 14.28571
2009-10 310.25 24.82 12.5
2010-11 338.6667 20.32 16.66667
2011-12 377.25 15.09 25
2012-13 268.4 13.42 20
2013-14 333.8 16.69 20
2014-15 412.75 33.02 12.5
2015-16 377.6 18.88 20
2016-17 354.8571 -24.84 -14.2857

ANALYSIS: The net profit ratio of the company for the year 2007-08 is 33.33, 2008-09 is 25, and 2009-10
is 14.28, 2010-11 is 12.05 and 2011-12 is 16.67. The net profit ratio has decreased by 24.99% in the year
2008-09, and decreased by 42.88% in the year 2009-10 and decreased by 12.46% in the year 2010-11 and
again increased by 33.36%

INTERPRETATION: The P/E looks at the relationship between the stock price and the company’s earnings.
Here the company has a high P/E ratio in last year it suggests that stock is undervalued and investor can earn
from it.
2. VERTICAL ANALYSIS
Profit & Loss Statement

INCOME 2016-17 % 2015-16 % 2014-15 %


Revenue From Operations [Gross] 62,276.30 99.70 60,300.20 97.59 55,496.40 91.44
Revenue From Operations [Net] 62,276.30 99.70 60,300.20 97.59 55,496.40 91.44
Total Operating Revenues 62,276.30 99.70 60,300.20 97.59 55,496.40 91.44
Other Income 184.30 0.30 1,485.60 2.41 5,193.00 8.56
Total Revenue 62,460.60 100 61,785.80 100 60,689.40 100
EXPENSES
Purchase Of Stock-In Trade 0.00 0 51.60 0.10 71.40 0.15
Operating And Direct Expenses 29,528.10 54.98 15,074.70 29.51 14,602.50 32.42
Employee Benefit Expenses 1,738.50 3.23 1,869.30 3.66 1,691.50 3.75
Finance Costs 2,912.50 5.42 3,559.00 6.96 1,409.10 3.12
Depreciation And Amortisation 22.72 18.68 16.78
12,203.40 9,543.10 7,559.70
Expenses
Other Expenses 7,316.80 13.62 20,968.40 41.03 19,699.90 43.74
Total Expenses 53,699.30 100 51,066.10 100 45,034.10 100

Profit/Loss Before Exceptional,


8,761.30 10,719.70 15,655.30
ExtraOrdinary Items And Tax
Exceptional Items -17,270.80 -679.90 0.00
Profit/Loss Before Tax -8,509.50 10,039.80 15,655.30
Tax Expenses-Continued Operations
Current Tax 9.50 2,050.10 3,109.20
Less: MAT Credit Entitlement 121.80 1,763.10 779.00
Deferred Tax 1,867.30 2,206.30 124.60
Tax For Earlier Years -338.90 0.00 0.00
Total Tax Expenses 1,416.10 2,493.30 2,454.80
Profit/Loss After Tax And Before
-9,925.60 7,546.50 13,200.50
ExtraOrdinary Items
Profit/Loss From Continuing
-9,925.60 7,546.50 13,200.50
Operations
Profit/Loss For The Period -9,925.60 7,546.50 13,200.50
Balance Sheet
EQUITIES AND LIABILITIES 2016-17 % 2015-16 % 2014-15 %
SHAREHOLDER'S FUNDS
Equity Share Capital 1,998.70 1.04 1,998.70 1.23 1,998.70 1.58
Total Share Capital 1,998.70 1.04 1,998.70 1.23 1,998.70 1.58
Revaluation Reserves 0.00 0 2.10 0 2.10 0.001
Reserves and Surplus 99,208.60 52.01 82,446.00 50.91 76,272.10 60.33
Total Reserves and Surplus 99,208.60 52.01 82,448.10 50.91 76,274.20 60.33
Total Shareholders Funds 101,207.30 53.05 84,446.80 52.14 78,272.90 61.91
NON-CURRENT LIABILITIES
Long Term Borrowings 50,342.10 26.39 41,700.20 25.75 19,626.70 15.52
Deferred Tax Liabilities [Net] 0.00 0 3,278.40 2.02 1,072.10 0.84
Other Long Term Liabilities 4,038.80 2.11 4,395.40 2.71 4,203.60 3.32
Long Term Provisions 233.00 0.12 226.20 0.13 196.90 0.15
Total Non-Current Liabilities 54,613.90 28.63 49,600.20 30.60 25,099.30 19.8
CURRENT LIABILITIES
Short Term Borrowings 6,547.80 3.43 699.90 0.40 625.90 0.49
Trade Payables 20,536.90 10.76 7,058.80 4.35 7,123.20 5.63
Other Current Liabilities 7,706.60 4.04 19,360.40 11.95 14,067.50 11.12
Short Term Provisions 129.10 0.06 772.70 0.47 1,234.90 0.97
Total Current Liabilities 34,920.40 18.30 27,891.80 17.22 23,051.50 18.23
Total Capital And Liabilities 190,741.60 100 161,938.80 100 126,423.70 100

ASSETS
NON-CURRENT ASSETS
Tangible Assets 38,117.60 19.98 31,156.30 19.23 25,655.20 20.29
Intangible Assets 73,405.20 31.48 60,658.20 37.45 27,789.20 21.98
Capital Work-In-Progress 1,181.80 0.61 2,825.10 1.74 2,656.10 2.10
Intangible Assets Under Development 8,418.40 4.41 971.50 0.59 6,410.80 5.70
Fixed Assets 121,123.00 63.50 95,611.10 59.04 62,511.30 49.4
Non-Current Investments 45,959.00 24.09 43,026.10 26.56 38,395.80 30.33
Deferred Tax Assets [Net] 887.50 0.46 0.00 0 0.00 0
Long Term Loans And Advances 1,115.80 0.58 9,347.00 5.77 8,838.10 6.99
Other Non-Current Assets 3,985.40 2.08 2,548.90 1.57 1,922.10 1.52
Total Non-Current Assets 173,070.70 90.73 150,533.10 92.95 111,667.30 88.32
CURRENT ASSETS
Current Investments 0.00 0 0.80 0.0004 4,721.10 3.73
Inventories 3.90 0.002 5.30 0.003 9.40 0.007
Trade Receivables 3,211.80 1.68 3,793.00 2.34 3,311.00 2.61
Cash And Cash Equivalents 108.70 0.05 52.10 0.032 388.70 0.30
Short Term Loans And Advances 9,678.40 5.07 6,842.90 4.22 5,394.20 4.22
OtherCurrentAssets 4,668.10 2.44 711.60 0.43 932.00 0.73
Total Current Assets 17,670.90 9.26 11,405.70 7.04 14,756.40 11.60
Total Assets 190,741.60 100 161,938.80 100 126,423.70 100
ANALYSIS & INTERPRETATION:
1. As compared to sales the other expense cover 47.27% & 24.39% respectively for 2017-18 & 2016-17.
cover the large amount of revenue so that’s not good for the company and mostly affected the
company performance.

2. Hear that profitability of company‘s performance that shows as per profit before tax as compared to sale

is -1.37 & 16.24% respectively 2017-18 & 2017-16 that shows that company profit margin is low which

is not good for the company as well as investor.

3. According to reserve & surplus is 75.37% & 74.78% respectably to 2010-11 & 2011-12. That’s show

that company is not maximize use of their funds in implication is not proper manner.

4. Company fixed asset is very high i.e. 63.5% & 59.04% respectively 2017-18 & 2016-17 it shows that

company bare low fix cost during operation that is good for the company.

5. As camper the total asset to investment that 24.09 % & 26.56 % respectively in 2017-18 & 2016-17 hear

the company sales there in current year by same proportion this not good for the company.

Overall performance of the company could be better in next year that by increasing performance of sale and
cost which should be improving.
3. HORIZONTAL ANALYSIS:

INCOME 2016-17 2015-16 (INCREASE/DECREASE) % CHANGE


Revenue From 62,276.30 60,300.20 1,976.10 3%
Operations
[Gross]
Revenue From 62,276.30 60,300.20 1,976.10 3%
Operations
[Net]
Total 62,276.30 60,300.20 1,976.10 3%
Operating
Revenues
Other Income 184.3 1,485.60 -1,301.30 -88%

Total Revenue 62,460.60 61,785.80 674.80 1%

EXPENSES
Purchase Of 0.00 51.6 -51.60 -100%
Stock-In Trade
Operating And 29,528.10 15,074.70 14,453.40 96%
Direct
Expenses
Employee 1,738.50 1,869.30 -130.80 -7%
Benefit
Expenses
Finance Costs 2,912.50 3,559.00 -646.50 -18%
Depreciation 12,203.40 9,543.10 2,660.30 28%
And
Amortisation
Expenses
Other 7,316.80 20,968.40 -13,651.60 -65%
Expenses
Total Expenses 53,699.30 51,066.10 2,633.20 5%
Profit/Loss 8,761.30 10,719.70 -1,958.40 -18%
Before
Exceptional,
ExtraOrdinary
Items And Tax
-17,270.80 -679.9 -16,590.90 2440%
Exceptional
Items
-8,509.50 10,039.80 -18,549.30 -185%
Profit/Loss
Before Tax
Tax Expenses-
Continued
Operations
9.5 2,050.10 -2,040.60 -100%
Current Tax
Less: MAT 121.8 1,763.10 -1,641.30 -93%
Credit
Entitlement
Deferred Tax 1,867.30 2,206.30 -339.00 -15%
Tax for Earlier -338.9 0.00 -338.90 -33890%
Years
Total Tax 1,416.10 2,493.30 -1,077.20 -43%
Expenses
Profit/Loss -9,925.60 7,546.50 -17,472.10 -232%
After Tax and
Before
Extraordinary
Items
Profit/Loss -9,925.60 7,546.50 -17,472.10 -232%
from
Continuing
Operations
Profit/Loss For -9,925.60 7,546.50 -17,472.10 -232%
The Period

INCOME 2015-16 2014-15 (INCREASE/DECREASE) % CHANGE


Revenue From 60,300.20 4803.8 8.65%
Operations 55,496.40
[Gross]
Revenue From 60,300.20 4803.8 8.65%
Operations 55,496.40
[Net]
Total 60,300.20 4803.8 8.65%
Operating 55,496.40
Revenues
Other Income 1,485.60 5,193.00 -3708 -71.4%

Total Revenue 61,785.80 60,689.40 1096 1.80%

EXPENSES
Purchase Of 51.6 -19.8 -27.7%
71.40
Stock-In Trade
Operating And 15,074.70 472 3.23%
Direct 14,602.50
Expenses
Employee 1,869.30 178 10.5%
Benefit 1,691.50
Expenses
Finance Costs 3,559.00 1,409.10 2105 149.3%
Depreciation 9,543.10 1984 26.2%
And
7,559.70
Amortisation
Expenses
Other 20,968.40 1269 6.44%
19,699.90
Expenses
Total Expenses 51,066.10 45,034.10 6032 13.39%
Profit/Loss 10,719.70 -4936 -31.5%
Before
Exceptional, 15,655.30
ExtraOrdinary
Items And Tax
Exceptional -679.9 -679 -679%
0.00
Items
10,039.80 -5616 -55.94%
Profit/Loss
15,655.30
Before Tax
Tax Expenses-
Continued
Operations
Current Tax 2,050.10 3,109.20 1059 34.06%
Less: MAT 1,763.10 984 126.33%
Credit 779.00
Entitlement
Deferred Tax 2,206.30 124.60 2082 1679.03%
Tax for Earlier 0.00 0
0.00
Years
Total Tax 2,493.30 39 1.58%
2,454.80
Expenses
Profit/Loss 7,546.50 -56 0.42%
After Tax and
Before 13,200.50
Extraordinary
Items
Profit/Loss 7,546.50 -56 0.42%
from
13,200.50
Continuing
Operations
Profit/Loss For 7,546.50 -56 0.42%
13,200.50
The Period

ANALYSIS & INTERPRETATION:

1. Net sales growth by 3%


2. Increase in expenses like operating and direct expenses by 13.23% this is very high to camper to sales
growth so it is not good for the company.
3. Depreciation & Amortization even increase by 28.28% that shows that company noncash charges
increase not well for the company.
4. Interest Expenses is decline by 76.95% this is good for the company.
5. Decline in income tax by 15.99% due to low profit margin. This is not good for company.
6. Decline in PAT by 232% is not good for company.
5.TREND ANALYSIS

SALES 62,276.30 60,300.20 55,496.40 49,918.50 45,350.90


Index 1.37 1.33 1.22 1.10 1.00
PBDIT 8,761.30 10,719.70 15,655.30 8,584.50 6,454.80
Index 1.36 1.66 2.43 1.33 1.00
PBT -8,509.50 10,039.80 15,655.30 8,377.40 6,454.80
Index -1.32 1.56 2.43 1.30 1.00
PAT -9,925.60 7,546.50 13,200.50 6,600.20 5,096.30
Index -1.95 1.48 2.59 1.30 1.00
SHARE 1,01,207.30 84,446.80 78,272.90 66,728.00 54,146.20
HOLDERS
Index 1.87 1.56 1.45 1.23 1.00
TOTAL DEBT 54,613.90 49,600.20 5,099.30 12,368.10 14,311.30
Index 3.82 3.47 1.75 0.86 1.00
NET 17,670.90 11,405.70 14,756.40 6,738.80 6,203.80
CURRENT
ASSETS
Index 2.85 1.84 2.38 1.09 1.00
TOTAL 1,90,741.60 1,61,938.80 1,26,423.70 98,204.10 87,883.20
ASSETS/TOTA
L LIABILITY
Index 2.17 1.84 1.44 1.12 1.00

ANALYSIS & INTERPRETATION:


1. In sale continuously increase. This is good performance of the company that is currently company is
market leader in telecom industry.

2. As per as profit after tax is concern high profit sow the high performance of the company hear the
company 2009-10 is very high but company should be maintain that profitability.

3. Share holders fund continuous up by creating the good image in the market that’s shows the goodwill
of the company.

4. Total debt of the company is in year 2009-10 is very low as camper the base year of 2007-08 this is
good for company but in year 2011-12 is very high so that not maintain by the company.

5. net current asset of the company is in negative that not good for the company
Total asset/ total liability of the company is continues increasing that shows that turnover year by year
that’s good for the company.

CONCLUSION

The company has been doing their activity effectively and efficiently. The company has a sound long term
solvency. The company can rise from the financial crush it is in right now by taking proper steps to increase
its sales of production and to minimize cost by maximize utilization of resources. A already known there is a
thin line between profitability and liquidity and the company lost two years made a profit has very low and
another two making better profit. This shows the company in a good position and the management of the
company has much as better so that does way maintain the market leadership.