Description
This is a spreadsheet explains about the balance sheet analysis of Balaji Telefilms.
Balaji Telefilms
s
------------------ in Rs. Cr. -----------------Mar '05 12 mths Mar '06 12 mths Mar '07 12 mths Mar '08 12 mths
Balance Sheet
Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities
13.04 13.04 0 0 200.09 0 213.13 0 0 0 213.13 Mar '05 12 mths
13.04 13.04 0 0 237.43 0 250.47 0 0 0 250.47 Mar '06 12 mths
13.04 13.04 0 0 291.12 0 304.16 0 0 0 304.16 Mar '07 12 mths
13.04 13.04 0 0 351.8 0 364.84 0 0 0 364.84 Mar '08 12 mths
Application Of Funds Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellaneous Expenses Total Assets
55.93 21.29 34.64 1.2 113.75 23.87 53.5 2.24 79.61 17.45 0.77 97.83 0 34.09 0.19 34.28 63.55 0 213.14
66.95 30.7 36.25 5.07 162.39 11.62 73.7 5.53 90.85 17.05 0.71 108.61 0 38.91 22.93 61.84 46.77 0 250.48
77.68 38.1 39.58 3.83 178.76 6.87 66.84 3.41 77.12 43 2.97 123.09 0 39.33 1.75 41.08 82.01 0 304.18
94.77 50.49 44.28 17.62 249.89 9.57 68.54 7.01 85.12 40.52 0.6 126.24 0 45.79 27.42 73.21 53.03 0 364.82
Contingent Liabilities Book Value (Rs)
0.48 32.68
0 38.41
2.87 46.64
30.2 55.95
Mar '09 12 mths
13.04 13.04 0 0 375.84 0 388.88 0 0 0 388.88 Mar '09 12 mths
98.14 57.68 40.46 51.39 245.67 0.9 50.57 6.97 58.44 29.77 4.16 92.37 0 37.95 3.05 41 51.37 0 388.89
5.7 59.63
------------------ in Rs. Cr. Profit & Loss account of Balaji ----------------Telefilms -Mar '05 12 mths Income Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income Expenditure Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Admin Expenses Miscellaneous Expenses Preoperative Exp Capitalised Total Expenses Mar '06 12 mths Mar '07 12 mths Mar '08 12 mths
196.75 0 196.75 4.37 16.58 217.7 0 2.29 5.4 123.37 9.5 3.47 0 144.03 Mar '05 12 mths
280.37 0 280.37 8.15 -12.25 276.27 0 2.73 7.17 144.35 10.19 6.41 0 170.85 Mar '06 12 mths 97.27 105.42 3.14 102.28 14.33 0 87.95 0.26 88.21 28.56 59.42 170.86 0 19.56 2.74 652.1
317.47 0 317.47 8.3 -4.75 321.02 0 3.16 11.57 154.96 12.62 5.66 0 187.97 Mar '07 12 mths 124.75 133.05 4.57 128.48 11.25 0 117.23 0.81 118.04 38.31 79.43 187.97 0 22.82 3.2 652.1
328.97 0 328.97 16.1 2.71 347.78 0 3.75 13.62 164.2 13.62 6.11 0 201.3 Mar '08 12 mths 130.38 146.48 6.18 140.3 12.7 0 127.6 0.35 127.95 40.55 87.93 201.31 0 22.82 3.88 652.1
Operating Profit PBDIT Interest PBDT Depreciation Other Written Off Profit Before Tax Extra-ordinary items PBT (Post Extra-ord Items) Tax Reported Net Profit Total Value Addition Preference Dividend Equity Dividend Corporate Dividend Tax Per share data (annualised) Shares in issue (lakhs)
69.3 73.67 2.09 71.58 9.74 0 61.84 0.74 62.58 21.07 41.3 144.03 0 82.43 10.77 652.1
Earning Per Share (Rs) Equity Dividend (%) Book Value (Rs)
6.33 800 32.68
9.11 150 38.41
12.18 175 46.64
13.48 175 55.95
Mar '09 12 mths
294.92 0 294.92 11.77 -8.67 298.02 0 4.81 13.2 172.37 34.45 6.94 0 231.77 Mar '09 12 mths 54.48 66.25 8.81 57.44 23.52 0 33.92 3.25 37.17 10.84 26.67 231.77 0 1.96 0.33 652.1
4.09 15 59.63
Mar '05 12 mths
1 2 3 4 5
Profitability Ratios Profit Margin Ratio = Profit After Tax/ Sales Asset Turnover Ratio = Sales/Total Assets Return on Assets =Profit Margin Ratio* Asset Turnover Ratio Return on Equity = Profit After Tax /Avg. shareholder's Equity Return On Net Worth=Profit After Tax / Net Worth Liquidity Ratios Current Ratio = Current Assets / Current Liabilities Quick Ratio=(Current Assets - Inventories)/ Current Liabilities Debtor Turnover Ratio = (sales / Debtors) Inventory Turnover Ratio = Cost of goods Sold / Inventories Total Asset Turnover Ratio = Sales/ Total Assets
Mar '05
20.9911055 0.92 19.3769353 3.16717791 19.3778445
Mar '05
1 2 3 4 5
2.85385064 2.15752625 3.67757009 8.24256389 0.92310219
Mar '05
Solvency Ratios 1 Debt to Equity Ratio= Total Debt / Shareholder's Equity 2 Interest Cover Ratio= PBIT / Interest Expense Capital Market Ratios 1 Earnings Per Share (EPS) 2 Dividend Per share= Equity Dividend/No. of shares 3 Operating Profit Per Share = Operating Profit / No. of shares
0 30.5885167
Mar '05
26.13 12.6406993 10.6272044
Mar '06 12 mths Mar '06
Mar '07 12 mths Mar '07
Mar '08 12 mths Mar '08
Mar '09 12 mths Mar '09
21.193423 1.12 23.7224529 4.55674847 23.7234
Mar '06
25.0196869 1.04 26.1128279 6.09125767 26.114545
Mar '07
26.7288811 0.90 24.102297 6.74309816 24.1009758
Mar '08
9.04313034 0.76 6.85798041 2.0452454 6.85815676
Mar '09
1.7563066 1.56840233 3.80420624 24.1282272 1.11933088
Mar '06
2.99634859 2.82911392 4.74970078 46.2110626 1.04369124
Mar '07
1.7243546 1.59363475 4.79967902 34.3751306 0.90173236
Mar '08
2.25292683 2.23097561 5.83191616 327.688889 0.75836355
Mar '09
0 29.0095541
Mar '06
0 26.6520788
Mar '07
0 21.6472492
Mar '08
0 4.85017026
Mar '09
32.11 2.99953995 14.9164239
32.68 3.49946327 19.1305015
42.92 3.49946327 19.993866
55.39 0.3005674 8.35454685
RATIO ANALYSIS
PROFITABILITY RATIOS
A. Profit Margin Ratio This represents the profit earned on the sales made and this must be high as it is good for the firm. In case of Balaji Telefilms this ratio consistently increases from 2005 to 2008 before falling dramatically in 2009. This alarming fall in the profits can be attributed to the dropping TRPs of their TV shows and increasing competition. B. Asset Turnover Ratio This represents how well the firm is utilizing its assets and it must be high for an efficient firm. However in the present case this ratio has fallen over the last couple of years. This drop can be attributed to the falling sales of the firm caused by the failure of various new projects and decrease in sales of previously successful ventures. So although the total assets have been increasing over the years the firm needs to work upon increasing it sales for improved efficiency. C. Return on Assets This represents the efficiency of firm to utilize it assets to earn profit as it is the ratio of PAT per unit of assets and it must be high. The return on assets has fallen over the past two years owing to dramatic decrease in the profit and it must be looked at with concern. D. Return on Equity This measures the efficiency with which shareholder's funds are employed into the operations of the firm. This again rose consistently from 2005-2008 and then dropped dramatically in 2009 owing to sharp fall in profit. This isn't good from the shareholder's point of view and they might lose their trust in the company leading to fall in its share prices.
LIQUIDITY RATIOS
A. Current Ratio It indicates the firms short term solvency position. A ratio of 2:1 is considered as ideal. If the ratio is less than one the firm faces problems in meeting its short term obligations. As can be seen from the statistics the current ratio increased in 2009 over 2008 and is well above the safety level. This is a good indicator in terms of the firms solvency position B. Quick Ratio All the current assets can not be easily converted to cash like the inventory etc, hence, comes in the quick ratio which gives a better picture of the liquidity position of the company. Ideally this should be 1:1. In the present case the quick ratio is well above the ideal level. However one should take care of the fact that there should not be too much excess of liquidity either which can be a concern of the firm. C. Debtor Turnover Ratio
This measures the efficacy of a firm's credit and collection policyand shows the number of times each year the debtors turns into cash so higher the ratio better it is. And in the present case the debtor turnover ratio has been consistently increasing over the past 5 years thus reflecting efficient credity policy and collection systems. Also the sales have been increasing. D. Inventory Turnover Ratio This represents how efficiently the company is converting its inventory into finished goods and this must be high. The inventory turnover ratio has increased exponentially over the last year. This can be attributed to increase in sales and a dramatic decrese in inventory. This reflects brilliant inventory management on part of the firm as they have been able to keep up the sales while lowering down the inventory.
SOLVENCY RATIOS
A. Debt to Equity Ratio This ratio gives a picture of the capital structure of the firm and this should not be too high as too large a debt in ones capital structure leads to high risk. In the present case the debt to equity ratio is 0 as there is no debt in the capital stucture. Thus the firm is relatively risk free. However the firm can include some debt in its capital structure and avail of the benfits of debt. B. Interest Cover Ratio This reflects the ability of the firm to pay off the interests over its debt. Higher the ratio, easier it is for the firm to raise debt as it gives assurance to the creditor of the worthiness of the firm to pay off the debt with interest. In the present case the interest cover ratio has dropped significantly over the years.This is due to sharp fall in profits on one hand and increasing interest expenses on the other. This is hurting the credit worthiness of the firm and it might face difficulty in raising debt for new debt.
CAPITAL MARKET RATIOS
A. Earning Per Share The EPS is basically a tool at the disposal of the investor to judge the performance of the firm and higher the EPS, better it is. In the present case the EPS has consistenly increased over the years making the lucrative from investment's point of view. This is good for the firm. B. Dividend Per Share This ratio indicates the amount of dividend per share and it is of great interest to the shareholder. The shareholder on his/her part wants to see higher dividend per share but from the firm's perspective this should be a balanced figure. In the present case the dividend per share has decreased over the years and this is not a good indicator for the shareholders.
doc_861875537.xlsx
This is a spreadsheet explains about the balance sheet analysis of Balaji Telefilms.
Balaji Telefilms
s
------------------ in Rs. Cr. -----------------Mar '05 12 mths Mar '06 12 mths Mar '07 12 mths Mar '08 12 mths
Balance Sheet
Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities
13.04 13.04 0 0 200.09 0 213.13 0 0 0 213.13 Mar '05 12 mths
13.04 13.04 0 0 237.43 0 250.47 0 0 0 250.47 Mar '06 12 mths
13.04 13.04 0 0 291.12 0 304.16 0 0 0 304.16 Mar '07 12 mths
13.04 13.04 0 0 351.8 0 364.84 0 0 0 364.84 Mar '08 12 mths
Application Of Funds Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellaneous Expenses Total Assets
55.93 21.29 34.64 1.2 113.75 23.87 53.5 2.24 79.61 17.45 0.77 97.83 0 34.09 0.19 34.28 63.55 0 213.14
66.95 30.7 36.25 5.07 162.39 11.62 73.7 5.53 90.85 17.05 0.71 108.61 0 38.91 22.93 61.84 46.77 0 250.48
77.68 38.1 39.58 3.83 178.76 6.87 66.84 3.41 77.12 43 2.97 123.09 0 39.33 1.75 41.08 82.01 0 304.18
94.77 50.49 44.28 17.62 249.89 9.57 68.54 7.01 85.12 40.52 0.6 126.24 0 45.79 27.42 73.21 53.03 0 364.82
Contingent Liabilities Book Value (Rs)
0.48 32.68
0 38.41
2.87 46.64
30.2 55.95
Mar '09 12 mths
13.04 13.04 0 0 375.84 0 388.88 0 0 0 388.88 Mar '09 12 mths
98.14 57.68 40.46 51.39 245.67 0.9 50.57 6.97 58.44 29.77 4.16 92.37 0 37.95 3.05 41 51.37 0 388.89
5.7 59.63
------------------ in Rs. Cr. Profit & Loss account of Balaji ----------------Telefilms -Mar '05 12 mths Income Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income Expenditure Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Admin Expenses Miscellaneous Expenses Preoperative Exp Capitalised Total Expenses Mar '06 12 mths Mar '07 12 mths Mar '08 12 mths
196.75 0 196.75 4.37 16.58 217.7 0 2.29 5.4 123.37 9.5 3.47 0 144.03 Mar '05 12 mths
280.37 0 280.37 8.15 -12.25 276.27 0 2.73 7.17 144.35 10.19 6.41 0 170.85 Mar '06 12 mths 97.27 105.42 3.14 102.28 14.33 0 87.95 0.26 88.21 28.56 59.42 170.86 0 19.56 2.74 652.1
317.47 0 317.47 8.3 -4.75 321.02 0 3.16 11.57 154.96 12.62 5.66 0 187.97 Mar '07 12 mths 124.75 133.05 4.57 128.48 11.25 0 117.23 0.81 118.04 38.31 79.43 187.97 0 22.82 3.2 652.1
328.97 0 328.97 16.1 2.71 347.78 0 3.75 13.62 164.2 13.62 6.11 0 201.3 Mar '08 12 mths 130.38 146.48 6.18 140.3 12.7 0 127.6 0.35 127.95 40.55 87.93 201.31 0 22.82 3.88 652.1
Operating Profit PBDIT Interest PBDT Depreciation Other Written Off Profit Before Tax Extra-ordinary items PBT (Post Extra-ord Items) Tax Reported Net Profit Total Value Addition Preference Dividend Equity Dividend Corporate Dividend Tax Per share data (annualised) Shares in issue (lakhs)
69.3 73.67 2.09 71.58 9.74 0 61.84 0.74 62.58 21.07 41.3 144.03 0 82.43 10.77 652.1
Earning Per Share (Rs) Equity Dividend (%) Book Value (Rs)
6.33 800 32.68
9.11 150 38.41
12.18 175 46.64
13.48 175 55.95
Mar '09 12 mths
294.92 0 294.92 11.77 -8.67 298.02 0 4.81 13.2 172.37 34.45 6.94 0 231.77 Mar '09 12 mths 54.48 66.25 8.81 57.44 23.52 0 33.92 3.25 37.17 10.84 26.67 231.77 0 1.96 0.33 652.1
4.09 15 59.63
Mar '05 12 mths
1 2 3 4 5
Profitability Ratios Profit Margin Ratio = Profit After Tax/ Sales Asset Turnover Ratio = Sales/Total Assets Return on Assets =Profit Margin Ratio* Asset Turnover Ratio Return on Equity = Profit After Tax /Avg. shareholder's Equity Return On Net Worth=Profit After Tax / Net Worth Liquidity Ratios Current Ratio = Current Assets / Current Liabilities Quick Ratio=(Current Assets - Inventories)/ Current Liabilities Debtor Turnover Ratio = (sales / Debtors) Inventory Turnover Ratio = Cost of goods Sold / Inventories Total Asset Turnover Ratio = Sales/ Total Assets
Mar '05
20.9911055 0.92 19.3769353 3.16717791 19.3778445
Mar '05
1 2 3 4 5
2.85385064 2.15752625 3.67757009 8.24256389 0.92310219
Mar '05
Solvency Ratios 1 Debt to Equity Ratio= Total Debt / Shareholder's Equity 2 Interest Cover Ratio= PBIT / Interest Expense Capital Market Ratios 1 Earnings Per Share (EPS) 2 Dividend Per share= Equity Dividend/No. of shares 3 Operating Profit Per Share = Operating Profit / No. of shares
0 30.5885167
Mar '05
26.13 12.6406993 10.6272044
Mar '06 12 mths Mar '06
Mar '07 12 mths Mar '07
Mar '08 12 mths Mar '08
Mar '09 12 mths Mar '09
21.193423 1.12 23.7224529 4.55674847 23.7234
Mar '06
25.0196869 1.04 26.1128279 6.09125767 26.114545
Mar '07
26.7288811 0.90 24.102297 6.74309816 24.1009758
Mar '08
9.04313034 0.76 6.85798041 2.0452454 6.85815676
Mar '09
1.7563066 1.56840233 3.80420624 24.1282272 1.11933088
Mar '06
2.99634859 2.82911392 4.74970078 46.2110626 1.04369124
Mar '07
1.7243546 1.59363475 4.79967902 34.3751306 0.90173236
Mar '08
2.25292683 2.23097561 5.83191616 327.688889 0.75836355
Mar '09
0 29.0095541
Mar '06
0 26.6520788
Mar '07
0 21.6472492
Mar '08
0 4.85017026
Mar '09
32.11 2.99953995 14.9164239
32.68 3.49946327 19.1305015
42.92 3.49946327 19.993866
55.39 0.3005674 8.35454685
RATIO ANALYSIS
PROFITABILITY RATIOS
A. Profit Margin Ratio This represents the profit earned on the sales made and this must be high as it is good for the firm. In case of Balaji Telefilms this ratio consistently increases from 2005 to 2008 before falling dramatically in 2009. This alarming fall in the profits can be attributed to the dropping TRPs of their TV shows and increasing competition. B. Asset Turnover Ratio This represents how well the firm is utilizing its assets and it must be high for an efficient firm. However in the present case this ratio has fallen over the last couple of years. This drop can be attributed to the falling sales of the firm caused by the failure of various new projects and decrease in sales of previously successful ventures. So although the total assets have been increasing over the years the firm needs to work upon increasing it sales for improved efficiency. C. Return on Assets This represents the efficiency of firm to utilize it assets to earn profit as it is the ratio of PAT per unit of assets and it must be high. The return on assets has fallen over the past two years owing to dramatic decrease in the profit and it must be looked at with concern. D. Return on Equity This measures the efficiency with which shareholder's funds are employed into the operations of the firm. This again rose consistently from 2005-2008 and then dropped dramatically in 2009 owing to sharp fall in profit. This isn't good from the shareholder's point of view and they might lose their trust in the company leading to fall in its share prices.
LIQUIDITY RATIOS
A. Current Ratio It indicates the firms short term solvency position. A ratio of 2:1 is considered as ideal. If the ratio is less than one the firm faces problems in meeting its short term obligations. As can be seen from the statistics the current ratio increased in 2009 over 2008 and is well above the safety level. This is a good indicator in terms of the firms solvency position B. Quick Ratio All the current assets can not be easily converted to cash like the inventory etc, hence, comes in the quick ratio which gives a better picture of the liquidity position of the company. Ideally this should be 1:1. In the present case the quick ratio is well above the ideal level. However one should take care of the fact that there should not be too much excess of liquidity either which can be a concern of the firm. C. Debtor Turnover Ratio
This measures the efficacy of a firm's credit and collection policyand shows the number of times each year the debtors turns into cash so higher the ratio better it is. And in the present case the debtor turnover ratio has been consistently increasing over the past 5 years thus reflecting efficient credity policy and collection systems. Also the sales have been increasing. D. Inventory Turnover Ratio This represents how efficiently the company is converting its inventory into finished goods and this must be high. The inventory turnover ratio has increased exponentially over the last year. This can be attributed to increase in sales and a dramatic decrese in inventory. This reflects brilliant inventory management on part of the firm as they have been able to keep up the sales while lowering down the inventory.
SOLVENCY RATIOS
A. Debt to Equity Ratio This ratio gives a picture of the capital structure of the firm and this should not be too high as too large a debt in ones capital structure leads to high risk. In the present case the debt to equity ratio is 0 as there is no debt in the capital stucture. Thus the firm is relatively risk free. However the firm can include some debt in its capital structure and avail of the benfits of debt. B. Interest Cover Ratio This reflects the ability of the firm to pay off the interests over its debt. Higher the ratio, easier it is for the firm to raise debt as it gives assurance to the creditor of the worthiness of the firm to pay off the debt with interest. In the present case the interest cover ratio has dropped significantly over the years.This is due to sharp fall in profits on one hand and increasing interest expenses on the other. This is hurting the credit worthiness of the firm and it might face difficulty in raising debt for new debt.
CAPITAL MARKET RATIOS
A. Earning Per Share The EPS is basically a tool at the disposal of the investor to judge the performance of the firm and higher the EPS, better it is. In the present case the EPS has consistenly increased over the years making the lucrative from investment's point of view. This is good for the firm. B. Dividend Per Share This ratio indicates the amount of dividend per share and it is of great interest to the shareholder. The shareholder on his/her part wants to see higher dividend per share but from the firm's perspective this should be a balanced figure. In the present case the dividend per share has decreased over the years and this is not a good indicator for the shareholders.
doc_861875537.xlsx