Financial Analysis Of DCM

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This is a spreadsheet describes on financial analysis of DCM.

DCM SHRIRAM INDUSTRIES LTD, NEW DELHI BALANCE SHEET SOURCES OF FUNDS Shareholder's funds Share Capital Equity Share Warrants Reserve and Surplus Rs in Lacs As at 31.03.09 As at 31.03.08 As at 31.03.07

1,739.84 19,201.93 20,941.77

1,645.34 850.50 16,377.16 18,873.00

1,529.84 16,400.41 17,930.25

Loan funds Secured Loans Unsecured Loans 28,375.67 1,016.87 29,392.54 3,370.01 53,704.32 29,798.36 921.05 30,719.41 1,966.39 51,558.80 22,896.44 565.81 23,462.25 2,413.53 43,806.03

Deferred Tax Liability (net) TOTAL APPLICATION OF FUNDS Fixed Assets Gross Block Less: Depreciation Net Block Capital work in progress

51,728.14 24,357.78 27,370.36 1,976.42 29,346.78 871.42

47,717.48 22,697.34 25,020.14 1,572.12 26,592.26 450.55

43,997.30 21,316.29 22,681.01 1,433.25 24,114.26 535.55

Investments Current assets, loans and advances Inventories Sundry Debtors Cash and bank balances Loans and advances

28,952.14 6,885.75 1,323.11 3,839.19 41,000.19

29,631.11 3,842.43 913.81 4,632.18 39,019.53

22,120.19 3,136.96 405.66 4,335.30 29,998.11

Less: Current liabilities and provisions Current Liabilities Provisions

15,915.09 1,598.98 17,514.07 23,486.12 -

13,356.64 1,146.90 14,503.54 24,515.99 -

9,672.52 1,188.53 10,861.05 19,137.06 19.16

Net current assets Miscellaneous expenditure

TOTAL

53,704.32 -

51,558.80 -

43,806.03 -

DCM SHRIRAM INDUSTRIES LTD, NEW DELHI PROFIT AND LOSS ACCOUNT For the year ended 31.03.09 INCOME Sale of Products Gross sales Less: Excise duty Other Income 100,977.35 21,123.06 79,854.29 4,403.06 84,257.35 73,522.47 17,817.46

EXPENDITURE Manufacturing and other expenses Interest

74,664.30 3,519.83 78,184.13 6,073.22 2,061.21 351.19 1,710.02 4,363.20 1,846.63 379.62

PROFIT BEFORE DEPRECIATION AND TAX Depreciation: Gross Less: Transferred from revaluation reserve PROFIT/ (LOSS) BEFORE TAX Provision for tax

Deferred tax charge / (credit) Fringe benefit tax PROFIT/ (LOSS) AFTER TAX Brought forward from the previous year Debenture redemption reserve written back Available for appropriation APPROPRIATIONS Proposed Dividend Corporate dividend tax General reserve Balance carried to balance sheet Earnings per share - basic/diluted (Rs.)

Current Tax 485.09 Less: MAT Credit 485.09 Add: Current tax of earlier years 1,403.62 81.72

1,485.34 2,877.86 6,593.17 189.69 9,660.72

(406.58) 68.15

347.97 59.14 1,000.00 8,253.61 16.54

For the year ended 31.03.08

Rs in Lacs For the year ended 31.03.07

55,705.01 4,672.37 60,377.38

74,367.87 14,409.09

59,958.78 3,390.52 63,349.30

56,867.88 2,801.47 59,669.35 708.03 1,467.01 (758.98)

59,608.03 1,827.14 61,435.17 1,914.13 1,339.31 574.82

(338.43) (420.55) 6,824.03 189.69 6,593.17

57.09 (57.09) 463.51 463.51 (113.13) 65.98

416.36 158.46 6,104.27 561.30 6,824.03

6,593.17 (2.71)

6,824.03 1.04

RATIO ANALYSIS Source - netmba.com Profitability Ratios Profit Margin Asset Turnover Ratio Return on Assets ROE EPS = PAT/Turnover = Total Assets / Turnover = PAT / Total Assets = PAT / Equity = PAT / No.of eqity Shares Rs. times Unit

Liquidity Ratios Current Ratio Quick Ratio Debtor Turnover Ratio Inventory Turnover Ratio Solvency Ratios Debt Equity Ratio Interest Coverage Ratio Capital Market Ratios Dividend - Yield Ratio = Dividend per share / Share Price = Debt / Equity = EBIT / Interest times times = Current Assets / Current Liabilities = (Current Assets - Inventory) / Current Liabilities = Annual Sales / Debtors = Annual Sales / inventory times times times times

As at 31.03.09 As at 31.03.08 As at 31.03.07 3.60% 0.67 5.36% 13.74% 16.54 -0.75% 0.93 -0.82% -2.23% (2.71) 0.26% 0.73 0.36% 0.88% 1.04

2.58 0.76 11.60 2.76

2.92 0.70 14.50 1.88

3.10 0.81 19.11 2.71

1.40 2.24

1.63 0.73

1.31 1.31

20.00%

nil

nil

1 2 3 4 5 6

Company is on a up trend and its performance has incresed as reflected by its improved profitability ratios. Inspite Interst coverage ratio has improved there fore more secured for lending institutions.

Debt - Equity ratio is kept comfortable at around ideal position of 1.33 hence funding of financial institution is sec

Co. has declared dividend of 20% inspite of recession in 2008-09, showing its well diversified business lines that m

Current and Quick ratios of the co are good at around 2:1 thus making its liquidity and day to day running of opera ROE and EPS have increased considerably in 2008-09 making it a good investment option for the investers.

mproved profitability ratios. Inspite of recession in 2008-09 the co has done well.

nding of financial institution is secured. Hence co could raise debt from market/ banks easily.

ll diversified business lines that makes the company more stable.

ty and day to day running of operations smooth.

nt option for the investers.



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