Date post: | 10-Apr-2018 |
Category: |
Documents |
Upload: | saaim-shaikh |
View: | 221 times |
Download: | 0 times |
of 66
8/8/2019 Maulik Dlink Finance
1/66
8/8/2019 Maulik Dlink Finance
2/66
PREFACE
Finance is regarded as a blood of business organization. Financial Managementis concerned with the efficient use of animportant economic resource.
Financial Management is an importantorgan of the Management. Without FinancialManagement the body of Management isworkless.
As a student of Business Administration Iget an opportunity to make a report onVoltas Limited in the area of finance. I get
practical knowledge about finance which isdifferent form theories.
8/8/2019 Maulik Dlink Finance
3/66
ACKNOWLEDGEMENTIt is great pleasure to me to get an
opportunity to prepare a project report in thefinance area.
I am really thankful to faculty andDharmsinh Desai University which providestheoretical as well as practical knowledge tous.
I am thankful to our Director Mr. G. S.Shah and also hardly thankful to our Mr.Rajan(Prof) under her kind guidance I makemyself to prepare this report.
I am extremely thankful to my parentswho provide me all possible help.
Last but not least, I would like to thank allthose persons who directly or indirectlyhelped me to prepare this report.
Patel Maulik.A..123SY BBA
8/8/2019 Maulik Dlink Finance
4/66
INDEX
1) Company Profile
2) Result of operation
3) Ratio Analysis and Interpretation
4) Directors Report
5) Auditors Report
6) Cash flow statement
7) Common size statement
8) Accounting Policies
9) Conclusion
8/8/2019 Maulik Dlink Finance
5/66
Company Profile
Name of Company:
D.Link India Limited Address: D.Link House
Bandra Kurla coplex road,Plot No:5C.S.T Road.
Santacruz (E)Mumbai 400098.
Registered Office:
L-5, verna electronics city,Verna plateau,Goa 403722.
Software and R and D center# 10-A, Kiadb industrial area,
Electronic city, Phase 2,Konappan agrahan (Po)Banglore-560100
Regional branch of company- Chandighar- New delhi- Jaipur- Luckhnow- Guwahati
- Ahemadbad
8/8/2019 Maulik Dlink Finance
6/66
- Indore- Jamshedpur- Kolkatta
- Mumbai- Pune- Cohin- Chennai- Banglore- Goa
Networking (Active)Broad band wireless networking
network security LAN swithing Routers peripheral shaaring surucillance
storage IP telephone digital home.
Networking (passive)
Copper range:- Digi-link r200(cat5t)- Digi-link p350(cat6)- Digi-link p500(cat6t)- Digi-link p800(cat6a)
Fibre Range:
- opti-link p500(multimode)- opti-link p800(multimode)- opti-link pu (single mode)
Board Of director:
K.R.NaikJangoo.palal
8/8/2019 Maulik Dlink Finance
7/66
Pattraj salgaocarTony Tsao
A.P.chen
R.T.krishnanPankaj BaligaK.M.gaonkarPradeep rana
Name of senior managerial person :
MR.C.M.gaonkar* MR.J.V.auadhanulu# MR.Nitin Kunkolienker MR. Vijay Rane MR. S. Arvindan* MR. Shridhar Kadam MR. Tushar sighat*
Executive director:
-Mr K.R.Naik (Executive chairman)-Mr jangoo Dallal (M.D. And C.E.O)
Name of non Executive director
-Mr K.M gaonkar-Mr Tony Tsao-Mr DuttaRaj Salgaocor-Mr pankaj baliga-Prof.R.T.Krishnan
8/8/2019 Maulik Dlink Finance
8/66
Result of Operations:
2007-08 2006-07
Turn OverIncome for serviceProfit before depn and taxLast depn for the yrProfit before taxs explanationAdd:expentional Item (Net)Profit before taxLess: Provision for taxA)Current taxB)deferred taxC)Fringe benefits tax
Profit after taxAdd/Less: Tax adjustmentNet ProfitBalance of profit brought forwardAmountavailable for appropriationTransferred to GRDividendTax on Dividend
B/F to balance sheetEarning per share (Rs)
2945.0684.32451.8874.61377.264.45381.71
104.62(13.32)5.06
285.34-285.341123.731409.0729.0060.0010.20
1309.869.51
3057.9924.80343.8676.33267.53-267.53
52.50(0.1)3.19
211.947.93219.27996.681215.9422.0060.0010.201123.73
7.31
8/8/2019 Maulik Dlink Finance
9/66
Total Turnover for Structure ClimbingSystem
0
2040
60
80
100
120
140
160
2007-082006-07
Ratio Analysis
8/8/2019 Maulik Dlink Finance
10/66
Meaning of Ratio:The Comparison between two or more
variables. It can be represented as
percentage (%), Oblique (/), times,isto (:).
A ratio is customarily expressed inthree different ways. It may beexpressed as a proportion between twovariable. E.g If the current asset aretwice then current ratio is 2:1.Second way is to percentage. E.g Therate on return on capital employed isto express the ratio as rate forexample stock turnover is six times ayear.
Importance of Ratio:
The use of ratios was started bybanks for ascertaining the liquidityand profitability of companiesbusiness for the purpose of advancing
loans to them.
1.Profitability:
The trend of profitability isavailable from profitability ratios.The gross profit ratio, net profitratio and ratio of return oninvestment give a good idea of the
8/8/2019 Maulik Dlink Finance
11/66
profitability of business, Themanagement gets an idea about theoverall efficiency of managers and
bank as well as other creditors drawuseful conclusions about repayingcapacity of the borrowers.
2.Liquidity:
The current ratio, liquid ratio andacid-test ratio will tell whether thebusiness will be able to meet itscurrent liability as and when theymature. Banks and other lenders willbe able to conclude from these ratioswhether the firm will be able to payregularly the interest and along withinstallments.
3.Efficiency :
The turn over ratio are excellentguides to measures the efficiency ofmanagers, E.g the stock turnover willindicate how efficiently the sale is
being made, the debtors turnover ofcollection department and assetsturnover shows the efficiency withwhich the assets are used in business .
4.Inter-firm Comparison :
The absolute ratio of firm are notof much use, unless they are compared
8/8/2019 Maulik Dlink Finance
12/66
8/8/2019 Maulik Dlink Finance
13/66
ratio of return on investment willguide the management.
Ratios of D-Link Limited.
A. Profitability Ratio:-
1.Gross Profit Ratio:Meaning:
The gross profit ratio measures thegross earning of the company to itsnet sales. If the ratio is less itsshows the inefficiency of company. The
gross profit ratio is expressed inpercentage(%).
Formula:
Gross profit Ratio =Gross profit *100
8/8/2019 Maulik Dlink Finance
14/66
Net Sales
2006-07= 590287431.50 *1002831177450.00
=20.85%
2007-08= 758494276 *100
2913841480
=26.03%
Graph and Table:Year Percentage2006-07
20.85
2007-08
26.03
8/8/2019 Maulik Dlink Finance
15/66
0
5
10
15
20
25
30
2006-07 2007-08/
Percentage
Interpretation:
In this ratio of Gross profit thecompany for the year 2006-2007 is26.03% it means when companys salesof Rs 100, gross earning of Rs 20.85%and 26.03 for the year 2006-2007 and
2007-08 respectively is available fromwhich operating expenses of businessare to be recovered. Gross profitratio in the year 2007-08 is increasedat 20.85% and 26.03%.
The conclusion the ratio is found that
the companys progress is extendingeveryday.
2.Net Profit Ratio :
8/8/2019 Maulik Dlink Finance
16/66
Meaning:
Net profit ratio is useful to
measure the overall performance of thebusiness and efficiency of the companyto earn amount on net profit on netsales.
Formula:
Net profit ratio=Net profit*100
Net Sales
2006-07= 219272323 * 100
2831177450
=7.74%
2007-08=287340512 * 100
2913841480
=9.86%
Graph and Table:Year Percentage2006-07
7.74
2007-8 9.86
8/8/2019 Maulik Dlink Finance
17/66
0
2
4
6
8
10
2006-07 2007-08
Percentage
Interpretation:The net profit ratio of the company
in the year 2006-07 is 7.74% and inyear 2007-08 9.86%. It means that thecompany is making the net profit ofRs.7.74for sales of every Rs.100 in2006-07. And the net profit of Rs.9.86for net sales of every Rs.100in 2007-08. It shows that the current yearsnet profit increased by Rs.2.12 whichshows better profitability of thecompany as compared to last year.
8/8/2019 Maulik Dlink Finance
18/66
5.Return on Shareholder Fund: Meaning:
It is a profitability of businessfrom the viewpoint of shareholders ascompare to their investment. Return onshare holders ratio expressed inpercentage(%).
Formula :Return on shareholders fund
=Net profit after tax *100Shareholders fund
2006-07= 219272323*100197294386
=11.11 %
2007-08=13.21 %
Graph and Table:Year Percentage2006-07
11.11 %
2007-
08
13.21 %
8/8/2019 Maulik Dlink Finance
19/66
10
10.5
11
11.5
12
12.5
13
13.5
2006-07 2007-08
Percentage
Interpretation:The ratio of year 2006-07 & 2007-08
are 11.11% & 13.21% respectively. Itshows that the shareholders earn11.11% Rs. for their investment in
year 2006-07 which increase in year2007-08 is Rs.13.21. This is good forcompanys shareholders and also forthe companys reputation in themarket.
8/8/2019 Maulik Dlink Finance
20/66
8/8/2019 Maulik Dlink Finance
21/66
8/8/2019 Maulik Dlink Finance
22/66
7.Earning Per Share: Meaning:
Earning per share measures theearnings available to the equity
Shareholders as compare to theirinvestment made per share.
Formula:Earning per Share=Profit after Tax Preference Dividend
Number of equity shares
2006-07=219272323.00
30004850.00=7.31 Rs 2007-08=287340512
30004850.00 = 9.58 Rs
8/8/2019 Maulik Dlink Finance
23/66
Graph and Table:Year Amount(Rs)2006-
07
7.31
2007-08
9.58
0
1234
56
78
910
2006-07 2007-08
Rs
Interpretation:Earning per share ratio measures
the earning of the equity shareholdersas compared to investment made on eachshare. Here the ratio of 2006-07is7.31 Rs. and ratio of 2007-08is 9.58Rs. It shows that if the face value ofone share is Rs.10 then shareholdersgets Rs.7.31 in year 2006-07 andRs.9.58 in year 2007.08.
8/8/2019 Maulik Dlink Finance
24/66
9.Stock Turnover Ratio:Meaning:
Stock turnover ratio represents theturnover of stock done during a year.Higher the ratio found better for thecompany. Stock turnover ratio isexpressed in times .
Formula:
Stock Turnover Ratio=Cost of Goods*100Cl Stock
2
006-07=2240890018.50 * 100328766509
=6.82times
2007-08=2155347204 * 100
339037996
=6.36 timesGraph and Table:
8/8/2019 Maulik Dlink Finance
25/66
Year Times2006-07
6.82
2007-08 6.36
66.16.26.36.46.56.66.76.86.9
2006-07 2007-08
Times
Interpretation:
In the company there is a stockturnover ratio of year 2006-07 is6.82times and ratio of year 2007-08 is6.36 times. It means ratio is decreaseby 0.46 times during the current yearwhich is not good for the company.
8/8/2019 Maulik Dlink Finance
26/66
10.Debtors Turnover Ratio:Meaning:
Debtors ratio shows the number oftimes the rotation of debtor cycle isdone during a year. The ratio showsthe number of days taken to collectthe dues of credit sale. The lower theratio good for the Company.
This ratio is also known as averagecollection period or debtors days ordebt collection period.
Formula:Debtors Turnover Ratio
=Debtors + Billreceivable*365
Credit Sales 2006-07=2831177450 * 365
492953947
=63.55days
8/8/2019 Maulik Dlink Finance
27/66
2007-08=2913841480 * 365585733496
=73.37days
Graph and Table:Year Days2006-
07
63.55
2007-08
73.37
58
60
62
64
66
68
70
72
74
2006-07 2007-08
Days
Interpretation:
Debtors velocity ratio of the year2006-07 and 2007-08 are 63.55 and
73.37 days respectively. It shows thatthe debtor cycle or average collection
8/8/2019 Maulik Dlink Finance
28/66
is made in 63.55 days in year2006-07while in year 2007-08 the averagecollection period is 73.37 days. This
means that the average collectionperiod has increased from 2006-07 to2007-08 by 9.82 days. So, this ratiodoes not show the satisfactoryposition of the company.
11 . Creditors Turnover Ratio: Meaning:
Creditors velocity ratio shows thenumber of days within which companymake payment to the creditor. Itmeasures the number of times therotations of creditors cycle is doneduring a year.
This ratio is also known as averagepayment period or creditors days orcredit payment period.
8/8/2019 Maulik Dlink Finance
29/66
Formula:Creditors Velocity Ratio=Credit Purchase
Creditors + Bills Payable
2006-07=994737802303146973
=3.28times
2007-08=1555753192433236329
=3.59 times
8/8/2019 Maulik Dlink Finance
30/66
3.1
3.2
3.3
3.4
3.5
3.6
2006-07 2007-08
Times
Interpretation:
The creditors ratio of the year2006-07 and 2007-08 are 3.28 and 3.59respectively. It shows that the thereis a increase in ratio by 0.30 which
is good for company also the creditorvelocity ratio has changed to 101.64up to 111.23 days in current years andit is good for company
8/8/2019 Maulik Dlink Finance
31/66
8/8/2019 Maulik Dlink Finance
32/66
2007-08=1123092544
597999431
=1.88 : 1
Graph and Table:Year Times2006-07
2.22:1
2007-08
1.88:1
1.7
1.8
1.9
2
2.1
2.2
2.3
2006-07 2007-08
Times
Interpretation:The companys current ratio of
year2006-07 is 2.22and in year 2007-08is 1.88 times. This ratio shows whenat Rs. 1 liability of the company thenexcess of assets is 2.22 in year 2006-07 and 1.88 in year 2007-08. The ratiois decreased in year 2006-07 as
8/8/2019 Maulik Dlink Finance
33/66
compared to 2006-07. It means thatthere is decline in current assets andincrease in liability which is not
good for the company.
14.Liquid Ratio:Meaning:
Liquid ratio measures the liquidposition of the Company to pay off itsdebt within very short period ascompared to it liquid assets. Ideal
liquid ratio is 1:1 .Liquid assets can be obtained bydeducting stock and prepaid expensesfrom current assets.
Liquid liability can be obtained bydeducting bank overdraft from currentliability.
Formula:
8/8/2019 Maulik Dlink Finance
34/66
Liquid Ratio= Liquid assetsLiquid Liabilities
2006-07=650077624430582642
=1.51: 1
2007-08=784054548
576158351
=1.36: 1
Graph and Table:
Year Times2006-07
1.51:1
2007-
08
1.36:1
8/8/2019 Maulik Dlink Finance
35/66
1.25
1.3
1.35
1.4
1.45
1.5
1.55
2006-07 2007-08
Times
Interpretation:This ratio shows the liquid
position of the company. The liquidratio of the year 2006-07 is 1.51 andin year 2007-08 is 1.36. The idealratio is 1:1. According to, liquidratio it is higher than the idealratio. It means company having a goodand satisfactory level.
8/8/2019 Maulik Dlink Finance
36/66
8/8/2019 Maulik Dlink Finance
37/66
Year Times2006-07
0.13:1
2007-08 0.08:1
0
0.02
0.04
0.06
0.08
0.1
0.12
0.14
2006-07 2007-08
Times
Interpretation:
The quick ratio of the company ofthe year 2006-07 is 0.13 and of year2007-08 is 0.08. It shows that howmuch quick funds are available to payoff quick liabilities. The standardquick ratio is 0.5:1. Here, the quick
ratio of current year is less thanstandard ratio, it means company hasinsufficient quick assets to pay outits quick liabilitie.
8/8/2019 Maulik Dlink Finance
38/66
16.Proprietary Ratio: Meaning:
The proprietary ratio is measurethe proportion of contribution made bythe propriety as compare to the totalassets of the business. This proprietyor Shareholders Fund consist of Sharecapital and reserve and surplus. Thisratio can be measured in percentage.
Formula: Proprietary ratio= Proprietary fund
Total assets
2006-07=972943896 *1002418528240
=0.82
2007-08=21743839802774972064
=0.78
Graph and Table:
Year Percentages2006-07 0.82 %2007-08
0.78%
8/8/2019 Maulik Dlink Finance
39/66
0.76
0.77
0.78
0.79
0.8
0.81
0.82
2006-07 2007-08
Percentage
Interpretation: The higher the ratio, the stronger
the financial position of the companyas it signifies that the proprietorshave provided larger funds to purchasethe assets. The current years ratio
is 0.78 it means the company usesoutside funds. This ratio cannotexceed 100%. If it is 100% then itmeans that the business uses onlyproprietors funds and not outsidersfunds.
17.Debt Equity Ratio:
8/8/2019 Maulik Dlink Finance
40/66
Meaning:Debt equity ratio measures outsiders funds
as compared to owners funds. It means debt ismeasures with equity its ideal ratio is 1:1.
Debt include outsiders fund (Debenture +Long Term Borrowing + secured and unsecuredloans.)
Equity includes share capital, equity sharecapital + Owners fund (All reserve and surplusfictitious assets.
Formula:
Debt equity ratio= Debt
Equity
2006-07=52063271972943896
=0.003:1 2007-08=2618553
2174353980
=0.001:1
Graph And Table
Year Times2006-07 0.003:12007-08 0.00:1
8/8/2019 Maulik Dlink Finance
41/66
0
0.0005
0.001
0.0015
0.002
0.0025
0.003
2006-07 2007-08
times
Interpretation:
The ratio of the year 2006-07 and2007-08 are 0.003 and 0.001 timesrespectively. It means the debt is Rs.
0.003 for every 1Re. in year2006-07and 0.001 Rs. for every 1Re. in year2007-08. It means the ratio hasdecreased in current year as comparedto previous year.
18. Capital Gearing Ratio:Meaning:
This ratio expresses theproportion of preference capital andordinary capital. This ratio should be lower. It includes
funds bearing fixed interest and charges.
8/8/2019 Maulik Dlink Finance
42/66
Formula:
Capital Gearing Ratio=Fixed interest bearing capitalOrdinary Capital
2006-07=5106327
1972943896
=0.003:1
2007-08=2618553
2174353980
=0.001:1
Graph And Table
Year Times
2006-07 0.003:1
2007-08 0.001:1
8/8/2019 Maulik Dlink Finance
43/66
0
0.0005
0.001
0.0015
0.002
0.0025
0.003
times
Interpretation:
In these ratio the company capitalyear 2006-07 is 0.003 and in year2007-08 is 0.001.The ratio indicatethe higher ratio the more unstablewill be the ordinary share.
8/8/2019 Maulik Dlink Finance
44/66
Directors Report
Directors have pleasure inpresenting their report and auditedaccounts of the company for the yearended march 31, 2008
Business Performance:During the year company set up global
Engineering service center the totalrevenue from the engeering servicefrom thecenter in the financial year2007-08 your company achived aturnover of is 2945.06 million ascompared to Rs 3051.99 million in theprevious year.product has groan by16.21% to Rs 2534.09 million in theprevious year. Income for service grewfromRs 24.80 million in the previousyear to Rs 84.32 million in thecurrent year. Dividend:-
Dividend has been divided at therate of Rs 10 per equity sharefor theyear ended march 2008
8/8/2019 Maulik Dlink Finance
45/66
Responsibility Statement:-
The applicable accounting standardshave been followed in preparation offinal accounts and there are nomaterials departuresSuch accounting policies have beenselected and applied consistencymade are reasonable and prodent soas to give a true and fair view of
state of affairs of companys profitof companys accounting year endedon march 2008
Foreign Exchange:-
Total foreign exchange earning s and out gois stated in the notes forming parts of theaccounts Research & Development:-
Transfer of technology initiated forKaplan or software equipment andcontrol.
8/8/2019 Maulik Dlink Finance
46/66
AUDITORS REPORT:-They have conducted their audit inaccordance with the auditingstandards generally accepted inIndia. Those standards require thatthey have plan and perform the auditto obtain responsible assuranceabout the financial statement arefree of material misstatement. Anaudit includes examining on the test
basis, evidence supporting theamount and disclose in the financialstatement.
As required by the company order2003 issued by the centralgovernment in terms of section 227
of the companys act 1956. they havein closed in the annexure asstatement on the matter specified inparagraphs hands of the said order.
Comments in the annexure referred
8/8/2019 Maulik Dlink Finance
47/66
They have obtained out theinformation and theexplanation which to thebest of their knowledge andbelief were necessary forthe audit. In theiropinion, Proper books ofaccount as required by lawhave been kept by thecompany so far as appearsfrom their examination ofbooks .
The balance sheet, Profitand loss account and cashflow statement seek with bythis report are inagreement with books ofaccounts.In their opinion, the
balance sheet P And L andcash flow statement withthis report are comply withthe accounting standardsreffered to in sub-section(3c) of section 211 of the
companies act, 1956.
8/8/2019 Maulik Dlink Finance
48/66
In the manner so requiredand give a true and fairview in company withaccounting principlesgenerally accepted inIndia.
In the cash of the balancesheet of the state of thecompany as act 31 st march,2008.
In the cash of the profitand loss account of theprofit for the year endedon the date.
In the cash flow statementof the cash flow for the
year ended on the date.
CASHFLOW STATEMENT
Meaning:-
8/8/2019 Maulik Dlink Finance
49/66
Cash is the most liquid asset of abusiness. All business transactionsare ultimately results into cash
inflow or cash outflow. Hence, astatement that shows a cash flow isconsidered to be an important one. Itcan be said that cash is both thebeginning and the end of the businessoperations. The business should havesufficient cash on hand so that theliabilities can be paid as & when theyfall due. The cash on hand should notbe excessive; otherwise the cash wouldremain idle, reducing the overallprofitability. The fund flow statementshows the changes in the net workingcapital, while the cash floe statementshows the inflow and outflow of cashonly. The statement shows the amountof cash received due to eachtransaction of the business and cashpaid. The total cash inflow is addedto the opening balance of cash and thetotal cash outflow is deducted therefrom. This gives the final cash
balance.
Importance:-
(1)Efficient Cash Management:-
8/8/2019 Maulik Dlink Finance
50/66
If the finance manager has clearidea of cash receipts and paymentsthen cash resources can be efficiently
managed. Excess cash found at anytimes may be profitable invested forthe time being and profitability isincreased.
(2)Useful For Internal Financial Management:-
The management can plan out paymentof dividend, repayment of long termloans, purchase of machines orequipment etc. If it has good ideaabout the timing when enough cash willbe on hand. This will avoid thepossibility of borrowing funds athigher rate of interest.
(3)Information About Cash Receipt And Payments:-
Such a statement will giveinformation about the trend of cashreceipt and payment. Such information
is useful to the management in meetingany future contingencies and alsoseizing any profitable opportunity.
(4)Useful For Control:-The historical cash flow statement
prepared for last year is useful for
comparing the figures of cash budgetsand points of difference may be
8/8/2019 Maulik Dlink Finance
51/66
located this facilitates managerialcontrol on the use of cash.
(5)Ease In Obtaining Funds:-By comparing the figures of cashflow statement and cash budgets, thecash planning and control becomes moreeffective. In turn this facilitatesraising of additional fund easily whenneeded.
CASH FLOW STATEMENT FOR THE YEAR ENDED 31 ST
MARCH,2007Schedule Rs in
Lacs 2007Rs. in
Lacs 2006 A. Cash flow
from operatingactivitiesProfit beforetax
381709355 267533354
Adjustment for:
Depreciation 74614038 76331522(Profit)loss onsale of fixedassets
(1662465) 8083836
Loss on sale offixed assets
36965308 -
Loss on sales oflongterm
57307739 -
8/8/2019 Maulik Dlink Finance
52/66
invt(trade)Provision fordimination in
value of currentinvt (non-trade)
2991860 225888
Provision fordimination invalue of longterm invt[trade]
- 4799900
interestinfinance charge 5398402 4731410Provision forqratuing
1282603 (1166198)
Provision forleave encashment
2017053 179530
Unrealizedexchangedifference
(5110013) (3101276)
Dividend income (51688393)
(20058782)
Provision fordoubtful debts
(17547363)
(6936009)
Provision fordimination invalue of currentinvest(non-trade)
(345494) (503074)
Provision fordimination invalue of current
invt written
(829930) -
8/8/2019 Maulik Dlink Finance
53/66
backProvision fordoubtful debts
and ad
20435227 8429845
bed debtswritten off
11731705 16700349
Sundry debtorswritten back
(7966702) (9621520)
Sundry balancewritten off
10694297 4603086
Profitonsale of currentinvt(non trade)(net)
(15031490) (10154406)
Operating profitbefore workingcapital
495889153 337306523
(Increase)/decrease in tradereceivable
(106962608) 124152159
(Increase)/decrease ininventories
(10271487)
118833080
(Increase)/decrease in loan andadvance
(60298150)
2631776
(Increase)/decrease in trade andother payable
153502164 (126993415)
Cash gence rated
from operation
472129072 479690123
8/8/2019 Maulik Dlink Finance
54/66
Direct taxespaid
(100411703)
(44125096)
Net cash from
operating ac
371717364 103556503
7Cash flows from investingactivitiesPurchased offixed assts
80556463 92086690
Purchased of
investment
546942150
7
489238126
Loan tosubsidiary
100000 14194
Sales of fixedassets
8022192 9748826
Sales ofinvestment
5182450921
4620403321
Repayment ofloans bysubsidary
100000 14194
Dividendrecieved
51688393_ 20058782
Interst recieved 5037534 3032285Net cash (usedin)investingactivities
302778930 331224739
8/8/2019 Maulik Dlink Finance
55/66
Table Of Ratios:
Particulars 2006-07 2007-08
1 Gross Profitratio
20.85% 26.03%
2 Net profitratio
7.74% 9.86%
3 Return on
shareholdersfund ratio
11.11% 13.21%
4 Return onequityshareholdersfund ratio
11.11% 13.21%
5 Earning per
share
7.31Rs. 9.58Rs.
6 Dividend pershare
0.00Rs. 0.00Rs.
7 Debtorsturnover ratio
63.55days 73.37days
8 Creditorsturnover ratio
111.23times 101.64times
9 Current ratio 2.22:1 1.88:110 Liquid ratio 1.51:1 1.36:111 Quick ratio 0.13:1 0.08:112 Proprietary
ratio0.82% 0.78%
13 Debt Equityratio
0.003:1 0.001:1
8/8/2019 Maulik Dlink Finance
56/66
14 Capital gearingratio
0.003:1 0.001:1
COMMON SIZE STATEMENT OFBALANCE SHEET
Particular Sch. No.
2007-08 2006-07
Sources ofFundsShareholdersFund
1 500000 500000
CapitalReserve &Surplus
2 955379 1092177
Loan FundsunsecuredLoans
3 - 96973
Deferred taxliability net
595983 592587
Total 2051362 2281737
Applicationof Fund
Fixed Assets 4
8/8/2019 Maulik Dlink Finance
57/66
Gross block 4364635 4311085--Less Dep. 1907080 1039156Net block 2457555 3271929
Capital workin progressTotal 2457555 3271929Investment 5Currentassets, loansand advances
Inventories 6Sundrydebtors
7 111468 1106750
Cash and bankbal.
8 18768 52978
Loans andadvances
9 389161 120748
Total 519396 1280476LessCurrentliability andprovisions.
Currentliability
10 913284 2256298
Provisions 11 12305 14370Total 925589 2270668
Net currentassets
406193 9901921
Total 2051362 2281737
8/8/2019 Maulik Dlink Finance
58/66
COMMON SIZE STATEMENT FOR PROFIT & LOSS A/C
Particular Sch.No.
2007-08 % 2006-07 %
IncomeTrainingincome
2893107 3868922
Otherincome
3772 -
Total 2896879 3868922Less
:Expenditure
Manu. &other exp.
2146250 1433641
Depreciati
on
867924 845467
8/8/2019 Maulik Dlink Finance
59/66
Interest 4422 92130Total 3018596 2371238Profit
beforeexceptional itemsand tax
121717 1497684
Provisionfor tax
16858
Deferred
tax
3396 451190
Fringebenefittax
11685 11725
Profitafter tax
136798 866189
Surplusbroughtforward
1092177 225988
Amountavailableforappropriation
955379 1092177
APPROPRIATION
955379 1092177
Basic anddullitedearningper share
2.74 17.32
8/8/2019 Maulik Dlink Finance
60/66
Accounting Policies
(1) Fixed assets:-Fixed assets are recorded at cost
of acquisition or construction. Theyare stated at historical cost lessaccumulated depreciation andimpairment loss, if any.
(2)Depreciation:-Depreciation on fixed assets is
provided on the straight-line basis inaccordance with the Companies Act,1956. (refer note 4 of schedule 17).
(3)Impairment loss:-Impairment loss is provided to the
extent the carrying amount(s) ofassets exceed their recoverableamount(s). Recoverable amount is thehigher of an assets net selling priceand its value in use. Value in use isthe present value of estimated futurecash-flows expected to arise from the
8/8/2019 Maulik Dlink Finance
61/66
continuing use of the asset and fromits disposal at the end of its usefullife. Net selling price is the amount
obtainable from sale of the asset inan arms length transaction betweenknowledgeable, willing parties, laysthe costs of disposal.
(4)Investment:-Long terms investment are carried
at cost. Provision is made torecognize a decline, other thantemporary, in the carrying amount oflong-term investments.
(5)Inventories:-Items of inventory are valued at
cost or net realizable value, whichever is lower. Cost is determined onthe following basis:
A. Raw materials, stores and sparesWeighted average
B.Process stocks and finished goodsAt material cost plus
appropriate value of overheads
C.Trading goodsFIFO
(6)Retirement and other employee benefits:-
A. Contributions are made towardsProvident fund, family pension
fund and superannuation fund, whichare defined contribution schemes.
8/8/2019 Maulik Dlink Finance
62/66
Liability in respect thereof isdetermined on the basis ofcontribution as required under the
statute/rules.
B. Gratuity liability, a definedbenefit scheme, and provision forleave encashment is accrued andprovided for on the basis ofactuarial valuations made at theyear end.
(7)Foreign currency transactions:-Transactions in foreign currency
(including those related toacquisition of fixed assets fromoutside India) are recorded at theoriginal rates of exchange in force atthe time the transactions areeffected. At the year-end, monetaryitems denominated in foreign currencyand forward exchange contracts arereported using closing rates ofexchange. Exchange differences arisingthereon and on realization/ payment of
foreign exchange are accounted, in therelevant year, as income or expense,except in respect of liabilitiesincurred in foreign currency foracquiring fixed assets from outsideIndia, in which case, these areadjusted in the carrying amounts of
respective fixed assets.
8/8/2019 Maulik Dlink Finance
63/66
In case of forward exchangecontract, or other financialinstruments that are in substance
forward exchange contracts, thepremium or discount arising at theinception of the contracts isamortized as expense or income overthe life of the contracts. Gains/losses on settlement of transactionarising on cancellation/ renewal offorward exchange contracts arerecognized as income or expense.
(8)Borrowing costs:-
Borrowing costs that areattributable to the acquisition,construction or production ofqualifying assets are capitalized aspart of the cost of such assets. Aqualifying asset is one thatnecessarily takes a substantial periodof time to get ready for its intendeduse. All other borrowing costs arecharged to revenue.
(9)Revenue recognition:-Revenue (income) is recognized
when no significant uncertainty as toits determination or realizationexists.
(10)Taxes on income:-
8/8/2019 Maulik Dlink Finance
64/66
Tax expense comprises both currentand deferred tax at the applicableenacted/ substantively enacted rates.
Current tax represents the amount ofincome tax payable/ recoverable inrespect of the taxable income/ lossfor the reporting period. Deferred taxrepresents the effect of timingdifferences between taxable income andaccounting income for the reportingperiod that originate in one periodand are capable of reversal in one ormore subsequent periods.
(11)Provisions and contingencies:-A provision is recognized when the
company has a legal and constructiveobligation as a result of a pastevent, for which it is probable thatcash outflow will be required and areliable estimate can be made of theamount of the obligation. A contingentliability is disclosed when thecompany has a possible or presentobligation where it is not probable
that an outflow of resources will berequired to settle it. Contingentassets are neither recognized nordisclosed.
8/8/2019 Maulik Dlink Finance
65/66
8/8/2019 Maulik Dlink Finance
66/66
In case of liquidity ratiocompanys current ratio and quickratio are satisfactory, but the liquid
ratio is very good, therefore we cansay that the over all performance ofthe D-Link project limited s betterin current year as compared toprevious year.