Description
Presentation on Financial Planning at Infosys and basic observations made after studying the balance sheet.
Financial Planning for Infosys Technologies Ltd
Basic Considerations…
• Sales = Software and service revenue • Sales Revenue has been taken as a base figure for all calculations. • For depreciation base figure is fixed assets. • For tax base figure is PBT.
P & L Account @ 2005-06
P & L Account Sales less: Cost of goods sold Operating Profit Other Recurring Income Adjusted PBDIT less : Depreciation Adjusted PBT Less: Tax Charges Adjusted PAT Reported Net Profit Earnings Before Appropriation Dividend Dividend Tax Retained Earnings 2005 6859.66 4534.55 2325.11 118.68 2443.79 268.22 2175.57 325.30 1850.27 1904.38 1970.30 309.80 42.17 1618.33 42.17 1465.76 14.95 22.80 1.73 growth 44.08 66.10 % of sales for 2006 9883.67 7531.89 2351.78 170.90 2522.68 385.46 2137.22 319.57 1817.66 0 0 309.80
Observations @ P & L Account
• Per annum increase in sales is significant. • COGS is very high and yields less operating profit. • Effect of expenditures on profits can be seen before the tax is paid.
Balance Sheet : 2005-06
Balance Sheet Share capital Reserves & Surplus Net Worth Borrowings Capital Employed 2005.00 135.29 5,106.44 5241.73 0 5241.73 % of sales 2006 135.29 6,724.77 6860.06 0 6860.06
Net Fixed Assets Investments Net Current Assets Capital Work-in-progress
1,176.90 1,328.70 2,418.61 317.52
17.1568
1540.08 1377.654
35.25845304 4.628800844
3484.83 457.4955
total
5241.73
6860.06
Observations @ Balance Sheet
• Share capital is same as of previous year. • Reserves and surplus for yr. 2006 is Reserves(04-05) + Retained Earnings (04-05) • Extra profit in 2004-05 is out of sale of Yantra Corporation( a foreign unit) and some adjustments.
doc_237777700.ppt
Presentation on Financial Planning at Infosys and basic observations made after studying the balance sheet.
Financial Planning for Infosys Technologies Ltd
Basic Considerations…
• Sales = Software and service revenue • Sales Revenue has been taken as a base figure for all calculations. • For depreciation base figure is fixed assets. • For tax base figure is PBT.
P & L Account @ 2005-06
P & L Account Sales less: Cost of goods sold Operating Profit Other Recurring Income Adjusted PBDIT less : Depreciation Adjusted PBT Less: Tax Charges Adjusted PAT Reported Net Profit Earnings Before Appropriation Dividend Dividend Tax Retained Earnings 2005 6859.66 4534.55 2325.11 118.68 2443.79 268.22 2175.57 325.30 1850.27 1904.38 1970.30 309.80 42.17 1618.33 42.17 1465.76 14.95 22.80 1.73 growth 44.08 66.10 % of sales for 2006 9883.67 7531.89 2351.78 170.90 2522.68 385.46 2137.22 319.57 1817.66 0 0 309.80
Observations @ P & L Account
• Per annum increase in sales is significant. • COGS is very high and yields less operating profit. • Effect of expenditures on profits can be seen before the tax is paid.
Balance Sheet : 2005-06
Balance Sheet Share capital Reserves & Surplus Net Worth Borrowings Capital Employed 2005.00 135.29 5,106.44 5241.73 0 5241.73 % of sales 2006 135.29 6,724.77 6860.06 0 6860.06
Net Fixed Assets Investments Net Current Assets Capital Work-in-progress
1,176.90 1,328.70 2,418.61 317.52
17.1568
1540.08 1377.654
35.25845304 4.628800844
3484.83 457.4955
total
5241.73
6860.06
Observations @ Balance Sheet
• Share capital is same as of previous year. • Reserves and surplus for yr. 2006 is Reserves(04-05) + Retained Earnings (04-05) • Extra profit in 2004-05 is out of sale of Yantra Corporation( a foreign unit) and some adjustments.
doc_237777700.ppt