Hartron Communications- Balance sheet and Profit and Loss Statement Analysis

financial statement analysis

1. Projected Profit & Loss Statement and Balance Sheet.

MANAGERIAL ACCOUNTING


Hartron Communication Ltd

2. IN RS. CR.
CAGR PROJECTED
Mar '09Mar '10Mar '11Mar '12Mar '132009-20102010-20112011-20122012-20132013-20142013-2014
Income
Sales Turnover 9.4614.1913.2821.1733.1250.00-6.41 59.41 56.45 0.37 45.30
Excise Duty 0 0 0 0 0 0.00 0.00 0.00 0.00 0.00 0.00
Net Sales 9.4614.1913.2821.1733.1250.00-6.41 59.41 56.45 0.37 45.30
Other Income 0.4 0.22 0.17 0.22-2.47-45.00-22.73 29.41-1222.73-2.57 3.88
Stock Adjustments 0 0 0 4.18 0 0.00 0.00 0.00-100.00 0.00 0.00
Total Income 9.8614.4113.4525.5730.6546.15-6.66 90.11 19.87 0.33 40.70
Expenditure
Raw Materials 0 0 0 0 11.43 0.00 0.00 0.00 0.00-1.00 37.56
Power & Fuel Cost 0.09 0.09 0.1 0 0 0.0011.11-100.00 0.00-1.00 0.00
Employee Cost 1.97 2.31 2.35 3.6310.6417.26 1.73 54.47193.11 0.52 16.22
Other Manufacturing Expenses 0.42 0.4 0.01 8.26 0 -4.76-97.5082500.00-100.00-1.00 0.00
Selling and Admin Expenses 0 0 0 0 0 0.00 0.00 0.00 0.00 0.00 0.00
Miscellaneous Expenses 1.11 2.68 2.54 4.55 6.5141.44-5.22 79.13 42.86 0.56 10.11
Preoperative Exp Capitalised 0 0 0 0 0 0.00 0.00 0.00 0.00 0.00 0.00
Total Expenses 3.59 5.48 5 16.4428.5752.65-8.76228.80 73.78 0.68 47.99
0.00
Operating Profit 5.87 8.71 8.28 8.91 4.5548.38-4.94 7.61-48.93-0.06 4.27
PBDIT 6.27 8.93 8.45 9.13 2.0842.42-5.38 8.05-77.22-0.24 1.58
Interest 2.49 2.88 1.84 2.42 2.2715.66-36.11 31.52 -6.20-0.02 2.22
PBDT 3.78 6.05 6.61 6.71-0.1960.05 9.26 1.51-102.83 0.52 -0.29
Depreciation 0.77 1.27 1.29 1.36 1.6964.94 1.57 5.43 24.26 0.22 2.06
Profit Before Tax 3.01 4.78 5.32 5.35-1.8858.8011.30 0.56-135.14-0.11 -1.67
Extra-ordinary items -0.05 0 0 0.42 0-100.00 0.00 0.00-100.00-1.00 0.00
PBT (Post Extra-ord Items) 2.96 4.78 5.32 5.77-1.8861.4911.30 8.46-132.58 0.10 -2.07
Tax 0.56 1.1 0.5 0.92 1.0896.43-54.55 84.00 17.39 0.18 1.27
Reported Net Profit 2.46 3.67 4.24 4.84 5.1549.1915.53 14.15 6.40 0.20 6.19
Hartron Communications Profit & Loss account
GROWTH RATEPROFIT & LOSS STATEMENT
------------------- in Rs. Cr. -------------------

3. IN Rs. Cr.
CAGR PROJECTED
Mar '09Mar '10Mar '11Mar '12Mar '132009-20102010-20112011-20122012-20132013-20142013-2014
I.Sources Of Funds
1Share Holders Funds:
a)Share Capital 8.87 8.87 8.87 8.87 8.87 0.00 0.00 0.00 0.00 0.00 8.87
b)Reserves 4.13 7.812.6217.4622.9688.8661.7938.3531.50 0.54 35.26
Networth 13 16.6721.4926.3331.8328.2328.9122.5220.89 0.25 44.13
2Loan Funds:
a)Secured Loans 24.0418.3713.0113.5820.14-23.59-29.18 4.3848.31-0.04 19.27
b)Unsecured Loans 0.12 11.311.38 11.2 10.29316.67 0.71-1.58-8.93 2.04 30.97
Total Debt 24.1629.6724.3924.7830.3422.81-17.80 1.6022.44 0.06 50.24
Total Liabilities 37.1646.3445.8851.1162.1724.70-0.9911.4021.64 0.14 94.36
II.Application Of Funds
1Fixed Assets:
a)Gross Block 47.0846.6647.0947.5746.08-0.89 0.92 1.02-3.13-0.01 45.83
b)Less: Accum. Depreciation 3 4.26 5.55 5.81 6.5242.0030.28 4.6812.22 0.21 7.92
c)Net Block 44.08 42.441.5441.7639.56-3.81-2.03 0.53-5.27-0.03 37.92
d)Capital Work in Progress 0 0 0 0 12.94 12.94
44.08 42.441.5441.76 52.5-3.81-2.03 0.5325.72 0.04 50.86
2Investments 0 0 0 0 0 0.00 0.00 0.00 0.00 0.00 0.00
3Deffered Tax Assets 0 0 0 0 0 0.00 0.00 0.00 0.00 0.00 0.00
4Current Assets, Loans and Advances
a)Inventories 0.03 0.03 0.03 4.21 12.3 0.00 0.0013933.33192.16 3.50 55.35
b)Sundry Debtors 0.91 0.74 0.77 0.67 1.32-18.68 4.05-12.9997.01 0.10 1.45
c)Cash and Bank Balance 0.58 1.14 1.99 9.34 5.1496.5574.56369.35-44.97 0.73 8.87
d)Loans and Advances 4.37 6.1 5.27 5.15 4.5139.59-13.61-2.28-12.43 0.01 4.55
Total CA, Loans & Advances 5.89 8.01 8.0619.3723.2735.99 0.62140.3220.13 0.41 70.21
Less: Current Liabilities and Provisions
a)Current Liabilities 12.8 4.08 3.72 6.95 8.9-68.13-8.8286.8328.06-0.09 8.13
b)Provisions 0 0 0 3.07 4.72 0.00 0.00 0.0053.74 68.13
Total CL & Provisions 12.8 4.08 3.7210.0213.62-68.13-8.82169.3535.93 0.02 76.26
Net Current Assets -6.91 3.93 4.34 9.35 9.65-156.8710.43115.44 3.21 0.08 10.42
Miscellaneous Expenses 0 0 0 0 0 0.00 0.00 0.00 0.00 0.00 0.00
Total Assets 37.1746.3345.8851.1162.1524.64-0.9711.4021.60 0.14 94.36
GROWTH RATEBALANCE SHEET
in Rs. Cr.
Hartron Communications Balance Sheet

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.