File <Finan

Sheet <TTK-comm,Trend>
ROW85
Shareholders equity
No point in looking at this.
ROW92
NCL
Growth rates are significantly different. In first 2 years, it had borrowed for
new projects and then repaid
ROW94
Current Liabilities:
Reducing
1. OCL is not important
2. Trade Creditors, growth rate is coming. This confirms what we saw int he comm
on-size.
ROW101
Assets
FAs (ROW104) increasing faster than total assets (ROW 103)
! Check Fixed-Asset T/o ratio is increasing / decreasing
ROW110
Cash Equivalents
Not important
ROW114
Inventories
Inventories is coming down over the previous year. we are adding inventories at
slower rate. However in Common trend, % of total was increasing.
In this case, we're able to forecast.
Inv (as % assets) increasing
Inv Growth rate decreasing
When will additons to inventory come down?
1. Adjusting prod to demand better
2. Could be offering discounts to customers
<Refer Pg3 of phy notes 20140808>

ROW114 vs ROW124
Inventory growth rate > Sales growth rate
Acceptability of products are detoritating over time
ROW115
Receivables
Drastically reducing
I've actually offered lesser credit period to my customer.
In 1st year, Sales 56%, Recivables24%.
Next year roughly the same.
This means that bargaining period has coming down
Similarly refer 3rd and 4th years.
Over the last 3 years, I'm increasing the credit period given to my customers. M
y bargaining power with the customer has been reducing over the years (common si
ze statements didn't capture this)
Our bargaining power is actually coming down

ROW94 and ROW124

Creditors growth rate and Sales growth rate
Ideally, We want creditors > Sales Longer credit from supplier. Ideally we would
like this or atleast remain constant
In 2014, -4% sales < Creditors -2% bargaining power is increased
Grand final summary:
Poor acceptability of its products
1. when looking [OPM-NPM], look at taxes etc.
Income tax is growing slower my sales. This confirms what we saw in the common s
ize.
Income tax expense is coming down. Growth rate IT < Growth rate of sales.
2. The most year, there have been sharp reduction in fina cost, and sharp increa
se in your other income. Other income is relatively easy to manipulate. Companie
s try to maintain their net profit by tinkering with other income. Results are c
onsidered less reliable when GP, OP is reducing, but NP is growing
3. Finance cost can come down because:
a. Rate of int is coming down
Good, funding cost is coming down. Take more and more projects.
b. Amt of borrowed is coming down
Can't definitely say, there could be impact of ROE because of low levera
ge. The more the business borrows, the more risky it becomes for
shareholders.
We can't conclude now
Super-Grand-Final Summary:
Its facing problem with core business. Unable to maintain its profitablilty, bar
gaining power with Cust and suppliers. This deterioration has been steadily happ
ening over time.
Its going to show up in lower asset efficiency
<Refer phy notes 20140808 Pg3>