5.3 ANALYSIS FINANCIAL POSITION OF THE COMPANY
Company financial position is very sound .In a very short period the company has captured the market and its product is well accepted in the market there is very negligible quantity of sales return and no quality claim has been is last 3 year
Profitability of the company is very high compare to same size of other firm and it matches with the large size firm which is supported by intra-firm comparisons and other ratio analysis of the company is stated here under.
Being sound internal accrual (profit) company has been very less dependent on external borrowings and even cash credit limits generally remains and utilized
COMPANY STATEMENTS (Balance sheet and profit &loss A/C)
On review Balance sheet and profit and loss a/c and other statement analysis it can be concluded that financial health of company is very sound and it is good middle size company Insteel sector. There is rising trend of profitability and company will not face marketing problem as it catters to infrastructure project as regard raw material and other inputs company have not any procurement problem. The company has captive power plant and major raw materials (Iron ore and coal) can be procured from a company of Jindal group which has own mines for both the items the location and distance of the mines is nearest to this company compared to any other mines in India . At present coal is procured from central govt. under taking also –SECL MCL
BALANCE SHEET AS AT 31ST MARCH 2011
PARTICULARS SCHED
Share Capital 1 500.00 500.00
Reserves & Surplus 2 39225.94 35280.97
Secured Loan 3 557.04 1153.71
Deferred Tax Liability (Net) 2786.12 2907.42
43069.10 39842.10 APPLICATION OF FUNDS
Fixed Assets 4
Gross Block 30462.22 30065.08
Less: Depreciation 9144.29 7410.81
Net Black 21317.93 22654.27
Capital Work in Progress 225.96 388.93
Investments 5 10.00 510.00
Current Assets, Loans & Advances
Inventories 6 15501.69 9335.60
Sundry Debtors 7 4793.64 2357.59
Cash & Bank Balance 8 151.95 653.71
Loans & Advances 9 10087.72 8167.58
30535.00 20514.48 Less: Current Liabilities & Provisions
Current Liabilities 10 8591.00 4011.00
Provisions 11 428.79 214.58
9019.79 4225.58
NET CURRENT ASSETS 21515.21 16288.90
PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2011
PARTICULARS SCHEDU
Sales & operational Income 44116.15 37910.02
Export Sales 1319.48 0.00
Gross Sales & operational Income 45435.63 37910.02
Less : Excise duty recovered 6047.98 2568.98
Net Sales & operational Income 39387.65 35341.04
Other Income 12 1546.19 1373.55
40933.84 36714.59 EXPENDITURE
Material, Manufacturing & other 13 31831.15 26516.40
Personnel Expenses 14 1740.01 1368.91
Administrative & Selling Expenses 15 719.81 782.95
Interest Expenses 16 101.11 305.08
Depreciation 1759.71 1701.85
36151.79 30675.19
Profit before Taxation 4782.05 6039.40
Less: Provision for Taxation
a. Income Tax 953.09 1026.39
b. Deferred Tax (121.30) 131.05
c. Deferred Tax/Income Tax for earlier years 3.11 1424.30
d. Wealth Tax 2.18 0.70
e. Provision for tax for earlier years no longer required,
written back 0.00 (6.39)
Profit after tax 3944.97 3463.35
Add: Amount brought forward from earlier year 35280.97 31817.62
Balance carried to the Balance Sheet 39225.94 35280.97
Basic & Diluted Earnings per share (in Rs.) (Excluding
extra-ordinary item) 78.96 97.75
CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 2011
PARTICULARS A CASH INFLOW/(OUTFLOW) FROM OPERATING
ACTIVITIES
NET PROFIT BEFORE TAX AND EXTRAORDINARY ITEMS
B CASH INFLOW/(OUTFLOW) FROM INVESTMENT
ACTIVITIES C CASH INFLOW/(OUTFLOW) FROM FINANCING
ACTVITIES NET CHANGES IN CASH & CASH EQUIVALENTS
(A+B+C)
KEY PERFORMANCE INDICATOR (Rs. InLacs)
Sales 45435.63 37910.02 71331.13 60957.9
8 25788.05 19985.8 Other Income 1546.19 1219.18 414.13 382.66 165.74 358.98 Gross Sales & Other
Income 46981.82 39129.2 71745.26 61340.6
4 25953.79 20344.78 Net Sales 40933.84 36560.22 63758.82 52857.2
7 22505.13 17511.06 Operating Profit (PBDIT) 6642.87 7891.96 12086.89 9419.46 3921.29 4081.05 Profit after tax (PAT) 3944.97 3463.35 9898.69 5626.37 1552.85 2451.81 Cash Profit 5586.49 6720.55 10473.22 7557.35 3307.93 3475.45 Balance Sheet
Gross Block 30688.18 30454.01 29347.41 27762.9
8 25185.38 21238.72 Net Block 21543.89 23043.2 23569.84 23581.9
1 22443.65 19738.17
Share Capital 500 500 500 500 500 500
Net Worth 39725.94 35780.97 32317.62 22418.9
3 16792.56 15239.71
Bowings 557.04 1153.71 3877.31 5619.51 11614.62 7828.72
Significant Ratios Operating Profit to Net
Sales 16% 22% 19% 18% 17% 23%
Net Profit to Net Sales 10% 9% 16% 11% 7% 14%
Debt Equity Ratio 0.03 0.05 0.16 0.24 0.52 0.40
Return on Capital
Employed 14% 19% 32% 34% 20% 23%
Return on Net Worth 10% 10% 31% 25% 9% 16%
Per Equity Share
EPS 78.90 69.27 197.97 112.53 31.06 49.04
Book Value Per Share 794.52 715.62 646.35 448.38 335.85 304.79 GRAPHICAL REPRESENTATION OF TURNOVER & PROFIT OF THE COMPANY
(Rs. In Lacs) Turnover 45435.63 37910.02 71331.13 60957.98 25788.05 19985.8 Operating Profit (PBDIT) 6642.87 7891.96 12086.89 9419.46 3921.29 4081.05 Profit after tax (PAT) 3944.97 3463.35 9898.69 5626.37 1552.85 2451.81 Cash Profit 5586.49 6720.55 10473.22 7557.35 3307.93 3475.45
WORLD CRUDE STEEL OUTPUT INCREASES BY 6.8% IN 2011
World crude steel production reached 1,527 megatonnes (Mt) for the year of 2011. This is an increase of 6.8% compared to 2010 and is a record for global crude steel production.
All the major steel-producing countries apart from Japan and Spain showed growth in 2011. Growth was particularly robust in Turkey, South Korea and Italy.
ANNUAL CRUDE STEEL PRODUCTION (MT)
Annual production for Asia was 988.2 Mt of crude steel in 2011, an increase of 7.9%
compared to 2010. The region’s share of world steel production increased slightly from 64.0% in 2010 to 64.7% in 2011. China’s crude steel production in 2011 reached 695.5 Mt, an increase of 8.9% on 2010. China’s share of world crude steel production increased from 44.7% in 2010 to 45.5% in 2011. Japan produced 107.6 Mt in 2011, a -1.8% decrease from 2010. In 2011, South Korea’s crude steel production was 68.5 Mt, a 16.2% increase compared to 2010.
The EU recorded an increase of 2.8% compared to 2010, producing 177.4 Mt of crude steel in 2011. Spain produced 15.6 Mt of crude steel in 2011, a -4.6% decrease on 2010 while Italy produced 28.7 Mt in 2011, an 11.3% increase over 2010.
In 2011, crude steel production in North America was 118.9 Mt, an increase of 6.8% on 2010. The US produced 86.2 Mt of crude steel, 7.1% higher than 2010.
The CIS showed an increase of 4.0% in 2011, producing 112.6 Mt of crude steel. Russia produced 68.7 Mt of crude steel, a 2.7% increase on 2010 and Ukraine recorded an increase of 5.7% with a year-end figure of 35.3 Mt.
Annual crude steel production for South America was 48.4 Mt in 2011, an increase of 10.2% on 2010. Brazil produced 35.2 Mt in 2011, 6.8% higher than 2010.
CRUDE STEEL PRODUCTION ANNUAL GROWTH TREND (%)
FIGURE 3: SHARE OF WORLD CRUDE STEEL PRODUCTION 2011, 2010
TOP 10 STEEL-PRODUCING COUNTRIES
Rank Countr
y 2011 2010 Chang e %
1 China 695.5 638.7 8.9
2 Japan 107.6 109.6 -1.8
3 United
States 86.2 80.5 7.1
4 India 72.2 68.3 5.7
5 Russia 68.7 66.9 2.7
6 South
Korea 68.5 58.9 16.2
7 German
y 44.3 43.8 1
8 Ukraine 35.3 33.4 5.7
9 Brazil 35.2 32.9 6.8
10 Turkey 34.1 29.1 17
6.
Logistics
In today's competitive world it is very important for every organization to have a proper channel of distribution and logging of the goods to the party within the time period committed. Besides easy accessibility of tailors/truck NALWA has its exclusive railway siding to meet day to day challenges thus helping us to create a niche in the market. The rake handling facility puts us in an advantageous position as we able to handle bulk cargos in a very short span.