financial statement analysis

1. MANAGERIAL ACCOUNTING
Hartron Communication Ltd
Projected Profit & Loss Statement and Balance Sheet.

2. Hartron Communications Profit & Loss account
------------------- in Rs. Cr. ------------------IN RS. CR.
PROFIT & LOSS STATEMENT
GROWTH RATE
CAGR PROJECTED
Mar '09 Mar '10 Mar '11 Mar '12 Mar '13 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2013-2014
Income
Sales Turnover
Excise Duty
Net Sales
Other Income
Stock Adjustments
Total Income
9.46
0
9.46
0.4
0
9.86
14.19
0
14.19
0.22
0
14.41
13.28
0
13.28
0.17
0
13.45
21.17
0
21.17
0.22
4.18
25.57
33.12
0
33.12
-2.47
0
30.65
50.00
0.00
50.00
-45.00
0.00
46.15
-6.41
0.00
-6.41
-22.73
0.00
-6.66
Expenditure
Raw Materials
Power & Fuel Cost
Employee Cost
Other Manufacturing Expenses
Selling and Admin Expenses
Miscellaneous Expenses
Preoperative Exp Capitalised
Total Expenses
0
0.09
1.97
0.42
0
1.11
0
3.59
0
0.09
2.31
0.4
0
2.68
0
5.48
0
0.1
2.35
0.01
0
2.54
0
5
0
0
3.63
8.26
0
4.55
0
16.44
11.43
0
10.64
0
0
6.5
0
28.57
0.00
0.00
17.26
-4.76
0.00
141.44
0.00
52.65
0.00
0.00
11.11 -100.00
1.73
54.47
-97.50 82500.00
0.00
0.00
-5.22
79.13
0.00
0.00
-8.76 228.80
Operating Profit
PBDIT
Interest
PBDT
Depreciation
Profit Before Tax
Extra-ordinary items
PBT (Post Extra-ord Items)
Tax
Reported Net Profit
5.87
6.27
2.49
3.78
0.77
3.01
-0.05
2.96
0.56
2.46
8.71
8.93
2.88
6.05
1.27
4.78
0
4.78
1.1
3.67
8.28
8.45
1.84
6.61
1.29
5.32
0
5.32
0.5
4.24
8.91
9.13
2.42
6.71
1.36
5.35
0.42
5.77
0.92
4.84
4.55 48.38
2.08 42.42
2.27 15.66
-0.19 60.05
1.69 64.94
-1.88 58.80
0 -100.00
-1.88 61.49
1.08 96.43
5.15 49.19
-4.94
-5.38
-36.11
9.26
1.57
11.30
0.00
11.30
-54.55
15.53
59.41
56.45
0.00
0.00
59.41
56.45
29.41 -1222.73
0.00 -100.00
90.11
19.87
7.61
8.05
31.52
1.51
5.43
0.56
0.00
8.46
84.00
14.15
0.37
0.00
0.37
-2.57
0.00
0.33
45.30
0.00
45.30
3.88
0.00
40.70
0.00
0.00
193.11
-100.00
0.00
42.86
0.00
73.78
-1.00
-1.00
0.52
-1.00
0.00
0.56
0.00
0.68
-48.93
-77.22
-6.20
-102.83
24.26
-135.14
-100.00
-132.58
17.39
6.40
-0.06
-0.24
-0.02
0.52
0.22
-0.11
-1.00
0.10
0.18
0.20
37.56
0.00
16.22
0.00
0.00
10.11
0.00
47.99
0.00
4.27
1.58
2.22
-0.29
2.06
-1.67
0.00
-2.07
1.27
6.19

3. Hartron Communications Balance Sheet
in Rs. Cr.
IN Rs. Cr.
BALANCE SHEET
GROWTH RATE
CAGR PROJECTED
Mar '10 Mar '11 Mar '12 Mar '13 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2013-2014
Mar '09
I. Sources Of Funds
1 Share Holders Funds:
a) Share Capital
b) Reserves
Networth
2 Loan Funds:
a) Secured Loans
b) Unsecured Loans
Total Debt
8.87
4.13
13
8.87
7.8
16.67
8.87
12.62
21.49
8.87
17.46
26.33
8.87
22.96
31.83
0.00
88.86
28.23
0.00
61.79
28.91
0.00
38.35
22.52
0.00
31.50
20.89
0.00
0.54
0.25
8.87
35.26
44.13
24.04
0.12
24.16
18.37
11.3
29.67
13.01
11.38
24.39
13.58
11.2
24.78
20.14 -23.59
10.2 9316.67
30.34
22.81
-29.18
0.71
-17.80
4.38
-1.58
1.60
48.31
-8.93
22.44
-0.04
2.04
0.06
19.27
30.97
50.24
37.16
46.34
45.88
51.11
62.17
24.70
-0.99
11.40
21.64
0.14
94.36
47.08
3
44.08
0
44.08
46.66
4.26
42.4
0
42.4
47.09
5.55
41.54
0
41.54
47.57
5.81
41.76
0
41.76
46.08
6.52
39.56
12.94
52.5
-0.89
42.00
-3.81
0.92
30.28
-2.03
1.02
4.68
0.53
-3.13
12.22
-5.27
-0.01
0.21
-0.03
-3.81
-2.03
0.53
25.72
0.04
45.83
7.92
37.92
12.94
50.86
2 Investments
0
0
0
0
0
0.00
0.00
0.00
0.00
0.00
0.00
3 Deffered Tax Assets
0
0
0
0
0
0.00
0.00
0.00
0.00
0.00
0.00
4 Current Assets, Loans and Advances
a) Inventories
b) Sundry Debtors
c) Cash and Bank Balance
d) Loans and Advances
Total CA, Loans & Advances
0.03
0.91
0.58
4.37
5.89
0.03
0.74
1.14
6.1
8.01
0.03
0.77
1.99
5.27
8.06
4.21
0.67
9.34
5.15
19.37
12.3
1.32
5.14
4.51
23.27
0.00
-18.68
96.55
39.59
35.99
0.00 13933.33
4.05 -12.99
74.56 369.35
-13.61
-2.28
0.62 140.32
192.16
97.01
-44.97
-12.43
20.13
3.50
0.10
0.73
0.01
0.41
55.35
1.45
8.87
4.55
70.21
Less: Current Liabilities and Provisions
a) Current Liabilities
b) Provisions
Total CL & Provisions
12.8
0
12.8
4.08
0
4.08
3.72
0
3.72
6.95
3.07
10.02
8.9
4.72
13.62
-68.13
0.00
-68.13
-8.82
0.00
-8.82
86.83
0.00
169.35
28.06
53.74
35.93
-0.09
0.02
8.13
68.13
76.26
-6.91
3.93
4.34
9.35
9.65
-156.87
10.43
115.44
3.21
0.08
10.42
0
0
0
0
0
0.00
0.00
0.00
0.00
0.00
0.00
37.17
46.33
45.88
51.11
62.15
24.64
-0.97
11.40
21.60
0.14
94.36
Total Liabilities
II. Application Of Funds
1 Fixed Assets:
a) Gross Block
b) Less: Accum. Depreciation
c) Net Block
d) Capital Work in Progress
Net Current Assets
Miscellaneous Expenses
Total Assets

4. INTRODUCTION
In this report I have selected the company Hartron Communication, I have gathered the balance
sheets and profit and loss statements of this company dating from the financial year Mar’09 to
the year Mar’13. The percentage change observed in each of the year is noted and studied. The
CAGR is also calculated in order to estimate the Balance sheet and profit and Loss Statement for
the year 2013-2014.
ABOUT THE COMPANY
Hartron communications is a telecommunication industry which deals in manufacturing
equipment’s for delivering broadband services throughout India. It is a subsidiary of the Haryana
State Electronics Development Corporation Ltd.
ANALYSIS
Profit and Loss Statement
Sales Turnover Revenue: the revenue of the year is estimated to increase by 37% over the last
year. This is calculated on the basis of the CAGR calculated and also on the fact that the
company has begun exporting (source: Annual Report: 2013) during the year 2013.
Income: The annual report also says that the company has also engaged itself in some business
activity in the field of real state and earned a profit in the current year which has resulted in the
increase in the Income.
Expenditure: the increase in the production due to exports has led to the increase in
Manufacturing expenses, the other cost related to production. Therefore the total expenses are
estimated to increase by around 60% from the last year.
Due to the exports and real estate business undertaken by the company apart from its annual
growth in sales the Net Profit of the company in the year Mar’14 can be estimated to increase by
20% thus estimating a profit of 6.19 crore.

5. Balance Sheet
Reserves: According to the annual report of 2013 the company has proposed to transfer its
profits and share premium account received to the general reserves of the company. Therefore I
have estimated that the general reserves will increase for the budgeted year 2014. This has also
resulted in the increase in the net worth as the share capital remains unchanged. It is also
mentioned in the annual report that the director has decided the company would not be paying
the dividend to the shareholders and would conserve the profit for the future requirement of the
company.
Debt: the company is expanding currently and is exporting their products and entering into new
markets for this reason I have assumed that the Loans taken by the company would increase.
Therefore in the balance sheet the total Liabilities are estimated to increase by 15%
Gross Block: the gross block of the company has been seen to decrease due to the continuous
depreciation amount charged. Which has resulted in the decrease of the Net Block
Current Assets, Loans and Advances:there has been an increase in the inventories as the
company has how increased stock keeping capacity due to exports and making it available to the
market on time. So also sundry debtors, cash and bank balance have been seen to increase.
Current Liabilities and Provisions:the company would observe a decrease in the current
liabilities as it is mentioned that the company plans on paying off its short term debts by the year
2013. Also the company has planned to pay of its taxes due and therefore the provisions made in
the balance sheet have increased.
Therefore the net current assets have been estimated to increase at 8%. The net current assets is
calculated by subtracting the current Liabilities and Provisions from the current Assets.