TOPIC:- Trend Analysis

Click to edit Master subtitle style

SUBJECT :- Accounts For Managers

PRESENTED BY :5/8/12

1) ANKIT

Bannari Amman Sugars Ltd Company was incorporated on 1st December in the year 1983 in TamilNadu.

Introduction Of Company

Bannari

Amman Sugars Limited (BASL) is integrated

sugar manufacturing company. The companys principal business activities include production of sugar, alcohol, liquor, granite, and cotton yarn.
Company

started production of sugar with aninitial

capacity of 1250 tones of cane crush/day (TCD) which has increased to 14,000 TCD. 5/8/12

Introduction (contd)
BASL

is also engaged in generation of power through

its wind turbines with a generating capacity of 29 MW in the areas like Poolavadi and Gudimangalam near Coimbatore .
Sugar-

Company operates in two units each located

in Tamil Nadu and Karnataka. These plants have received ISO 9001:2000 certification for its quality management.
Total

Income- Rs. 8315.851 Million ( year ending

5/8/12

Mar2011)

Introduction (contd)

The company has clients base in countries likeUSA,Germany,Belgium,Italy,Australia, Middle East and theFar East.

Bannari

Amman Sugars Limited provides you an

in-depth strategic analysis of the companys businesses and operations and enables you to understand your partners, customers and competitors better.
5/8/12

What is Trend Percentage Analysis?

The trend analysis is a technique of studying several financial statements over a series of year .

In

this analysis the trend percentages are

calculated for each item by taking the figure of that item for the base year taken as 100.
5/8/12

Objectives Of Trend Analysis

Indicating profitability of an enterprise.

Showing

the operational efficiency of

the business.
Indicating

the actual and prospective

performance of the business.

Assisting

in decision making

5/8/12

Advantages Of Trend Analysis

v Progress of business over a period can be

assesses by computing trend index percentages of sales, cost of sales, production, profit, capital employed etc.
v

A comparative figure of trend analysis can show the strength and weaknesses of the business.

5/8/12 Conclusions drawn on the basis of trend

Limitations Of Trend Analysis

Practically

, selection of the base year for

trend percentage analysis is very difficult.

Since

the

data by

used

in to

analysis factors,

is it

influenced becomes inflationary

inflationary

difficult

segregate

growth and real growth by

5/8/12

trend analysis.

Balance Sheet
Particulars Sales Turnover Other Income Total Income Total Expenses Operating Profit Gross Profit Interest PBDT Depreciation PBT Tax Net Profit Earnings Per Share Equity Reserves Face Value Mar'11 826.76 4.82 831.59 682.51 144.25 149.07 22.16 126.92 70.83 56.09 3.03 53.06 46.38 11.44 712.73 10 Mar '10 884.44 2.53 886.97 643.59 240.85 243.38 5.3 238.07 38.34 199.73 56.1 143.63 125.56 11.44 673.01 10 Mar '09 711.06 1.04 712.1 536.54 174.52 175.56 9.58 165.98 34.08 131.9 12.07 119.83 104.75 11.44 542.7 10 Mar '08 552.29 1.39 553.68 472.39 79.9 81.29 7.31 73.98 34.82 39.16 -3.18 42.34 37.01 11.44 438.25 10 10 Mar '07 792.87 1.83 794.7 641.05 151.82 153.65 4.17 149.49 36.43 113.06 18.29 94.77 99.33 9.54

5/8/12

Calculation Of Trend Percentage Analysis

Trend Percentage Analysis
Net sales=(Current year sales/base year)*100 Profit Before Tax =(PBT/Base Year)*100 Earnings Per Share=(current year EPS/Base Year)*100 Equity=(Current year Reserve/Base Year)*100 Comparison of Ratios Gross Profit Ratio= (Gross Profit / Sales) * 100 Net Profit Ratio = (Net Profit/Sales)*100 Mar'11 104 50 47 Mar '10 Mar '09 Mar '08 Mar '07 112 177 126 90 117 105 70 35 37 100 100 100

712.73 18.03%

673.01 27.51%

542.7

438.25

100

24.68% 14.71% 19.37%

6.41%

16.23%

16.85% 7.66%

11.95%

5/8/12

Interpretation
In

the year 2008 there is a 30% decrease in the net

sales, but it increases by 10% in the year 2009. In year 2010 there is found an increase of 10% in net sales.
The

reason for decrease in net sales may be due to production, competition in the market,

low

customers choice, change in suppliers strategy etc.

PBT

has decreased in the year 2008 and increased in

5/8/12

the year 2010. The reason for decrease in PBT is due to increase in indirect expense like transportation,

 In

the year 2010 EPS increases and EPS decreases

Interpretation (contd)

in year 2008. When EPS of the company increases it shows that, there is better financial position of the company.
Gross

profit ratio reflects the efficiency with which

management produce each unit of product. Higher gross profit ratio shows that the firm is able to produce at relatively lower cost. As per table above see that GP Ratio has come down to 18.03%.
5/8/12

Thank you ..

5/8/12