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    Anandam Case Analysis

    Uploaded by

    Vini Sheth

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    © All Rights Reserved
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    Anandam Case Analysis

    Uploaded by

    Vini Sheth
    3 views5 pages

    Copyright

    © © All Rights Reserved

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    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    3 views5 pages

    Anandam Case Analysis

    Uploaded by

    Vini Sheth

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 5

    1.

    Cash Flow Statement 2013–14 2014–15

    Statement of Cash Flows for Anandam - from Operations - CFO 318 1,542
    Profit After Tax as Stated in Income Statement 672 840
    Add Depreciation deducted 400 660
    Less Inventory Additionally Created -1,180 -750
    Less - Increase of Accounts Recieveable -1,200 -600
    Add Increase in Current Liablity 1,468 1,052
    Add Expense in Financing Activity - Intrest Paid 158 340

    Statement of Cash Flows for Anandam - from Assets & Investments - CFI -1,000 -2,860

    - Purchase of Fixed Assets -1,000 -2,860

    Statement of Cash Flows for Anandam - from Financing Activities - CFI 742 1,324

    + Additional Capital Raised / New Equity 400 400


    - Intrest Expense -158 -340
    + Reserves & Surplus Created
    + Long Term Borrowings Created 500 1,264

    Cash Balance at the Begginig of the Year 40 100


    Cash Flow generated throughout the Year 60 6
    Closing Cash Balance 100 106
    Highest CaHighest Cash has flowed in from Deb
    Comments 2. Common-size financial statements

    Income Statement 2012–13 2013–14 2014–15


    Sales
    Cash 200 480 800
    Inventory is highly hold- se Credit 1,800 4,320 7,200
    Total sales 2,000 4,800 8,000
    As currentt liablites are goi Cost of goods sold 1,240 2,832 4,800
    Gross profit 760 1,968 3,200
    Operating expenses:
    General, administration, and selling expenses 80 450 1,000
    Depreciation 100 400 660
    Interest expenses (on borrowings) 60 158 340
    Profit before tax (PBT) 520 960 1,200
    Tax @ 30% 156 288 360
    Profit after tax (PAT) 364 672 840
    Net Profit % 26% 20% 15%

    Balance Sheet 2012–13 2013–14 2014–15


    Assets
    Fixed assets (net of depreciation) 1,900 2,500 4,700
    Current assets
    Cash and cash equivalents 40 100 106
    Accounts receivable 300 1,500 2,100
    Inventories 320 1,500 2,250
    Total Assets 2,560 5,600 9,156
    Equity & Liabilities
    Highest Cash has flowed in from Debt Equity share capital (shares of
    ₹10 each) 1,200 1,600 2,000
    Reserve & surplus 364 1,036 1,876
    Long-term borrowings 736 1,236 2,500
    Current liabilities 260 1,728 2,780
    Total Liablities 2,560 5,600 9,156
    3. Various relevant ratios

    15 vs 13 15 vs 14 Ratio
    Current ratio
    300% 67% Acid test ratio (quick ratio)
    300% 67% Receivable turnover ratio
    300% 67% Receivable days
    287% 69% Inventory turnover ratio
    321% 63% Inventory days
    Long-term debt to total debt
    1150% 122% Debt-to-equity ratio
    560% 65% Gross profit ratio
    467% 115% Net profit ratio
    131% 25% Return on equity
    131% 25% Return on total assets
    131% 25% Total asset turnover ratio
    -42% -25% There is a decline in the pr Fixed asset turnover ratio
    Current asset turnover ratio
    Interest coverage ratio (times interest earned)
    Working capital turnover ratio
    Return on fixed assets
    147% 88%

    165% 6%
    600% 40%
    603% 50%
    258% 64%

    67% 25%
    415% 81%
    240% 102%
    969% 61% Already Very high
    258% 64%
    Sector Average
    2.30:1 Seems good, as the ideal bench make is approx 2
    1.20:1 Seems good, as if the ATR is above 1 then the company can anytime pay all its debts
    7 times
    52 days
    4.85 times
    75 days
    24%
    35%
    40% Stable
    18% There is a decline in the proportion of Net profit because of Admin & Selling expense going high; earlier onl
    22% Extraordinary Return on quiry
    10%
    1.1
    2
    3
    10
    8
    24%
    ense going high; earlier only 4% of the Sales value was spent on Admin, which has gone up to 12.5%, around 3 times

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