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INTERPRETATION:
1. The Gross Profit has been increased by 34.76% from the year 2014- Rs. 26236000 to
Rs. 35355000 in 2015. This shows that the company increased its sales during the
year 2014-2015.
2. There is an increase in the Research and Development with a percentage change of
35.20%from 2014 to 2015 i.e. Rs 9,275,000 to Rs 12,540,000 showing that the
company has focused more on its Research in expanding its operations and
technology and lump sum of money was spent on it.
INTERPRETATIONS:
1. The stockholder’s equity has been increased by 26,43,00 i.e., by 24.6%.
2. The reduction in the short-term debt by 84.34% and the increase in the equity by
24.6% is a very good sign as it increases the financial strength of the company.
3. Fixed assets have been increased by 25.29% as compared to last year. This has been
made possible because of increase in stockholders’ equity.
4. The cash and cash equivalents have been increased by 9.15% which shows the
liquidity flow of the company.
5. Overall the performance of the company as compared to the previous year has
improved and is doing good.
5. The Gross Profit increased by 34.98% from the year 2015-Rs 35,35,000 to Rs
47,72,000 in 2016. This shows the company increased its sales during the year 2015-
2016
6. There is an increase in the Research and Development with a percentage change of
28.27% from 2015 to 2016 i.e. Rs 125,40,000 to Rs 160,85,000 showing that the
company has focused more on its Research in expanding its operations and
technology and lump sum of money was spent on it.
7. There is an increase also in the Selling, Distribution and Administrative Expenses
from Rs 204,11,000 in 2015 to Rs 272,84,000 in 2016 i.e. 33.67% showing that the
company has expanded its selling and distribution circle and the revenue is being used
to finance the activities
8. The Operating Income has increased by 87.46% from 2015 to 2016 i.e. Rs 22,33,000
to Rs 41,86,000. This shows the company has increased its Sales with nearly double
the portion even after investing a lump sum in operating expenses.
9. Profit After Tax has increased by 297.8% from 2015 to 2016 i.e. Rs 5,96,000 to Rs
23,71,000. This shows how the company performance has improved tremendously
regardless of the huge expenditures undertaken.
Overall the company performance is good and the company managed to make
almost 300% gain i.e. 3 times the previous year profit in 2016.
Assets
Non current Assets
Fixed assets
Tangible assets
Property plant and
equipment 21838000 29114000 7276000 33.31806942
Intangible assets 992000 854000 -138000 -13.91129032
Goodwill 3759000 3784000 25000 0.665070497
Long term
Investments 16000 223000 207000 1293.75
Current assets
Other Assets 2437000 3646000 1209000 49.61017645
Inventory 10243000 11461000 1218000 11.89104754
Net receivables 5654000 8339000 2685000 47.48850371
Short term
investments 3918000 6647000 2729000 69.65288412
Cash and cash
equivalents 15890000 19334000 3444000 21.67400881
TOTAL ASSETS 3772800 48448000 10720000 54.99207823
INTERPRETTATIONS:
1. Assets and liabilities of the company has increased by 54.99% from 2015 to 2016.
2. The reduction in debt by 6.47% and improvement of equity by 44.40% is a good work
as it shows the improvement of the financial strength of the company.
3. Fixed assets have increased from last year by 33.1% as compared to last year. This
has been made possible because of increase in shareholders funds.
4. Overall the performance of the company for the year 2016 has increased as compared
to 2015. The performance of Amazon for 2016 as compared to 2015 is good.
absolute percentage
Particulars 2016 2017 change change
1.Income:sales,general and
admin 43536000 61826000 18290000 42.01120911
add:A.operating income 4186000 4106000 -80000 -1.911132346
B. income/expense item 190000 548000 358000 188.4210526
earnings before interest and
tax(A+B):(1.1) 4376000 4654000 278000 6.352833638
2.expenses
interest expense 484000 848000 364000 75.20661157
total expense(2.1) 484000 848000 364000 75.20661157
earnings before tax(1.1-
2.1)(earnings) 3892000 3806000 -86000 -2.209660843
less:income tax 1425000 769000 -656000 -46.03508772
equity earnings/loss
unconsolidated subsidiary 96000 4000 -92000 -95.83333333
total (tax) 1521000 773000 -748000 -49.17817226
earnings after tax(earnings-tax) 2371000 3033000 662000 27.92070856
Interpretation
1. There is an 42.01% increase in the sales.
2. The total expenses have increased by 75.21%
3. Earnings before tax have reduced drastically from by 2.21% which is not good for the
company.
4. Earnings after tax shows a decent increase to 27.92%.
Interpretation
1.the comparative balance sheet of the company reveals that during 2016-17 there has been
an increase in fixed asset by 19752000, percentage change:67.84%. while long term debt
increased by 17049000 and the capital surplus has increased by 4203000 and retained
earnings by 3720000. This fact depicts that the policy of the company is to purchase fixed
assets from long term sources of finance thereby affecting the working capital.
2. common stock remains unchanged.
3.the current assets have increased by 14416000 and the cash has increased by 1188000. On
the other hand there has been increased in inventory amounting to 4586000. The current
liability have increased by 14067000 i.e., 32.10%. this further confirms that the company has
raised long term finance even for current assets resulting in an improvement in the liquidity
position of the company.
4. capital surplus has increased by 4203000 i.e., 24.46% which shows that the company’s
surplus has not been properly utilized for the payment of dividends to shareholders either in
cash or by issue of owner’s share.
5. the overall financial position of the company is satisfactory.