Bosch India Ltd. Analysis 2021-22 Ratio Analysis, Leverage Analysis, Annual Report Analysis.

1. Sauradeep Biswas
M.Com.(Advanced Accountancy)
45209210030
A002
Bosch India
Ltd.(2021-22)

3. Overview
A 136 years old German multinational engineering and technology company
Robert Bosch in Stuttgart in 1886
India set up in 1951,
16 Manufacturing
sites, and 7
Development and
Application Centers
Construction Tools &
Equipments, Home
Appliances,
Automobile Parts.
Headquartered
in Gerlingen, German
y.
Revenue in 2022
: $1.72 B

4. Cost Benefit
Analysis
(Capital Budgeting)
Costs and Benefits –
Capital Budget -
Monetary Units.
Decisions to make and
which to forgo.
Benefits > Costs
Take It!
Evaluate potential major
projects or Investments
All about Inflows
& Outflows

5. Methods of Cost Benefit Analysis
Methods
Traditional/N
on
Discounting
Accounting
Rate of
Return (ARR)
Pay Back
Period (PBP)
Time
Adjusted/Dis
counted Cash
Flows
Discounted
Pay Back
Period (DPBP)
Net Present
Value (NPV)
Profitability
Index (PI)
Internal Rate
of Return
(IRR)
Modified
Internal Rate
of Return
(MIRR)

6. Pay Back Period (PBP)
Assess the
short- and
long-term
benefits.
Shorter
payback
periods –
economica
l.
PBP of
Bosch
India will
help the
analyst in
the
following
ways
Time it
takes in
order for
the project
to recover
all
invested
amounts.

7. Calculation of PBP
Cash Flow After Tax (CFAT)
NPAT : Rs.12172 Million
Add Dep. : Rs.3243 Million
CFAT : Rs.15415 Million
Assume CFAT is constant for next 3 years.
PBP = Total Initial Capital Investment / Annual
Expected After Tax Net Cash Flow
=36149/15415
=2.34 years

8. Comments on PBP
Less Risky Investment Less Exposure to Loss
Highly economical

9. Accounting Rate of Return (ARR)
Ratio or Return
on investment
Multiple projects
Calculate an
investment's
profitability
quickly
Decision on
investment or
an acquisition

10. Calculation of ARR
(2018,201
7)
(2020,201
9)
(2022,202
Average NPAT = Summation of NPAT
of all the years / No. of Years
=14441+13708+15934+5848+4825
+12172 / 6
=Rs.11154.67 Millions
ARR = (Avg. NPAT / Initial Investment)
x 100
=(11154.67 / 36149) x 100
=30.86%

11. Comments on ARR
2020-21 2021-22

12. Leverage Analysis
Ideal for
acquisitions,
buyouts
Assesses the
ability of a
company to meet
its financial
obligations
Leverage tends
to magnify the
company's
profits
Fixed Cost
indications

13. Calculation of Leverages

14. Operating Leverage
OL = Contribution
/ EBIT
=29253 / 15290
=1.91 times Combined
Leverage
CL = Contribution
/ EBT
=29253 / 15001
=1.95 times
Financial Leverage
FL = EBIT / EBT
=15290 / 15001
=1.02 times
Calculation of Leverages

15. Comments on Leverages
OL is +ve – Synergy
(sales, profits)
Fixed Cost are a lil bit more than limits as
per OL
FL above 1 is risky & FL above 2 is a cause
of concern.
No financial debt problem.
CL shows risk

16. Ratio Analysis
Operational Efficiency
Trend Line
For Planning and Future
Forecasting of the Firm
Liquidity of the
Firms
Profitability, Solvency and
Efficiency
Comparing Financial
Performance
Business & Financial
Risk

17. Calculation of Ratios

18. Calculation of Ratios

19. Topline Trend

20. Profit Trend

21. 10 Years
Performance