Name of the project : Specific Project 1

Study of Ratio's made by Havells

India Ltd. Through balance sheet
and Profit & Loss A/c.

Source Document : Audited Profit and Loss A/c and

Balance Sheet uploaded by
Havells India Limited on their web
site.

Objectives of the project : To find the efficiency and efficient

working of the company for the
bankers to provide loan or to find
the market value of the company
for year ended Mar 31, 2018.

Tools for analysis : Ratio Analysis

Period of Study : Year 2017-2018

 CURRENT RATIO

Year 2018
Current Assets = 3616.40
Current Liabilities = 2467.24

3616.40
Current Ratio =
2467.24

= 1.46

Current Ratio for the Year 2018 is 1.46

Year 2017
Current Assets = 3174.85
Current Liabilities = 1559.00

3174.85
Current Ratio =
1559.00

= 2.03

Current Ratio for the Year 2017 is 2.03

ANALYSIS
The current ratio is a financial ratio that measures whether or
not a firm has enough resources to pay its debts over the next 12
months. It compares a firm's current assets to its current liabilities

Here current ratio has decreased from 3.68 to 2.85

 LIQUID RATIO

LIQUID ASSETS
LIQUID RATIO =
CURRENT LIABILITIES

Liquid Assets = C.A. - Stock - Prepaid Exp.

Year 2018
Liquid Assets = 3616.40 – 81 – 1612.65
Current Liabilities = 2467.24

1922.75
Liquid Ratio =
2467.24

= 0.77

Liquid Ratio for the Year 2018 is 0.77

Year 2017
Liquid Assets = 3174.85 – 928.43
Current Liabilities = 1559.00

2246.42
Liquid Ratio =
1559.00

= 1.44

Liquid Ratio for the Year 2017 is 1.44

ANALYSIS
Liquid ratio measures the ability of a company to use its near
cash or quick assets to extinguish or retire its current
liabilities immediately. Quick assets include those current
assets that presumably can be quickly converted to cash at close
to their book values.

Again Liquid ratio has also increased similar to current ratio i.e
to 1.70 from 1.58
 NET PROFIT RATIO

NET PROFIT AFTER TAX

NET PROFIT RATIO =
NET SALES

Year 2018
Net Profit after Tax = 712.52
Net Sales = 8377.26

712.53
Net Profit Ratio =
8377.53

= 0.08

Net Profit Ratio for the Year 2018 is 0.08

Year 2017
Net Profit after Tax = 539.04
Net Sales = 6720.24

539.04
Net Profit Ratio =
6720.24

= 0.08

Net Profit Ratio for the Year 2017 is 0.08

ANALYSIS
Net Profit Ratio measure the company's use of its assets and
control of its expenses to generate an acceptable rate of return.

Here Net Profit Ratio is almost the same as that of the previous
years i.e. 0.23 to 0.24
 DEBT EQUITY RATIO

DEBT (Long Term Loans)

DEBT EQUITY RATIO =
(D/E RATIO) EQUITY (Share Holder Fund)

Year 2018
Debt = 81
Equity = 3739.15

81
D/E RATIO =
3739.15

= 0.02

Debt Equity Ratio for the Year 2018 is 0.02

Year 2017
Debt = 0
Equity = 3273.58

0
D/E RATIO =
3273.58

= 0

Debt Equity Ratio for the Year 2017 is 0

ANALYSIS
A high debt/equity ratio generally means that a company has
been aggressive in financing its growth with debt. This can result
in volatile earnings as a result of the additional interest expense.

Here Debt Equity ratio is also similar like Net profit ratio. it is 0.05
in 2014 and 0.06 in 2015
 TOTAL ASSETS TO DEBT RATIO

TOTAL ASSETS
Total Assets to Debt Ratio =
(A/D RATIO) LONG TERM DEBTS

Year 2018
Total Assets = 6541.41
Long term debts = 81

6541.41
A/D RATIO =
81

= 80.75

Total Assets to debt ratio for the Year 2018 is 80.75

Year 2017
Total Assets = 4959.99
Long term debts = 0

4959.99
A/D RATIO =
0

= 0

Total Assets to debt ratio for the Year 2017 is 0

ANALYSIS

Here Total Assets to Debt Ratio has decreased significantly from

27.08 to 24.31
 ASSETS TURNOVER RATIO (A.T. RATIO)

Net sales
A.T. RATIO =
Total Assets

Year 2018
Net Sales = 8377.26
Total Assets = 6541.41

8377.26
A.T. RATIO =
6541.41

= 1.28

Assets Turnover Ratio for the Year 2018 is 1.28

Year 2017
Net Sales = 6720.24
Total Assets = 4959.99

6720.24
A.T. RATIO =
4959.99

= 1.35

Assets Turnover Ratio for the Year 2017 is 1.35

ANALYSIS
The asset turnover ratio measures how efficiently a company is
using its assets. The turnover value varies by industry. It is
calculated by dividing net sales by average total assets.

Here assets turnover ratio has increased extreme minutely to

0.90 from 0.89
 RETURN ON ASSETS RATIO (R.O.A. RATIO)

Net Income
R.O A. RATIO =
Total Assets

Year 2018
Net Income = 712.52
Total Assets = 6541.41

712.52
R.O.A. RATIO =
6541.41

= 0.10

Return On Assets Ratio for the Year 2018 is 0.10

Year 2017
Net Income = 539.04
Total Assets = 4959.99

539.04
R.O.A. RATIO =
4959.99

= 0.10

Assets Turnover Ratio for the Year 2017 is 0.10

ANALYSIS
The ROA is considered an overall measure of profitability. It
measures how much net income was generated for each `1 of
assets the company has. ROA is a combination of the profit
margin ratio and the asset turnover ratio. It can be calculated
separately by dividing net income by average total assets or by
multiplying the profit margin ratio times the asset turnover ratio.

Here ROA ratio has increase minutely to 0.22 in the current year
in comparison to previous years 0.21
 STOCK TURNOVER RATIO

NET SALES
STOCK TURNOVER RATIO =
INVENTORIES

Year 2018
Net Sales = 8377.26
Inventories = 1612.65

8377.26
Stock Turnover Ratio =
1612.65

= 5.19

Stock Turnover Ratio for the Year 2018 is 5.19

Year 2017
Net Sales = 6720.24
Inventories = 928.43

6720.24
Stock Turnover Ratio =
928.43

= 7.23

Stock Turnover Ratio for the Year 2017 is 7.23

ANALYSIS
This ratio is used to measure whether the investment in stock in
trade is effectively utilized or not. It reveals the relationship
between sales and cost of goods sold or average inventory at
cost price or average inventory at selling price. Stock Turnover
Ratio indicates the number of times the stock has been turned
over in business during a particular period.

Here Stock Turnover Ration is 4.67 in the current year as

compared to previous year's 4.60
Name of the project
: Specific Project 2
Study of contribution made by
Havells India Ltd. towards Profit ,
Revenue and capital employed by
different segments.

Source Document : Audited balance sheet uploaded

by Havells India Limited on their
web site.

Objectives of the project : To study and analyze segment

wise contribution to sales, profits
capital employed. net profit and
return on capital employed of the
company for year ended Mar 31,
2018.

Tools for analysis : Comparative Statements

Segment Reporting

Period of Study : Year 2018-2019

 SEGMENT REVENUE
YEAR 2018
SEGMENT SEGMENT CALCULATION PERCENTAGE
REVENUE

Switchgears 1424.45 1424.45  100 17.24 %

8260.27

Cables 2683.41 2683.41  100 32.48 %

8260.27

Lighting and Fixtures 1168.70 1168.70  100 14.16 %

8260.27

Consumer Durables 1569.57 1569.57  100 19.00 %

8260.27

Lloyd Consumer 1414.14 1414.14  100 17.12 %

8260.27

Total 8260.27 100 %

YEAR 2017
SEGMENT SEGMENT CALCULATION PERCENTAGE
REVENUE

Switchgears 1467.68 1467.68  100 22.28 %

6585.96

Cables 2675.61 2675.61  100 40.63 %

6585.96

Lighting and Fixtures 1022.80 1022.80  100 15.53 %

6585.96

Consumer Durables 1419.87 1419.87  100 21.56 %

6585.96

Lloyd Consumer 0 0  100 0%

6585.96

Total 6585.96 100 %

 SEGMENT RESULT
YEAR 2018
SEGMENT SEGMENT CALCULATION PERCENTAGE
RESULT

Switchgears 557.20 557.20  100 27.59 %

2019.33

Cables 438.03 438.03  100 21.70 %

2019.33

Lighting and Fixtures 335.63 335.63  100 16.62 %

2019.33

Consumer Durables 420.15 420.15  100 20.81 %

2019.33

Lloyd Consumer 268.32 268.32  100 13.28 %

2019.33

Total 2019.33 100 %

YEAR 2017
SEGMENT SEGMENT CALCULATION PERCENTAGE
RESULT

Switchgears 561.03 561.03  100 37.37 %

1501.09

Cables 325.63 325.63  100 21.69 %

1501.09

Lighting and Fixtures 265.06 265.06  100 17.66 %

1501.09

Consumer Durables 349.37 349.37  100 23.28 %

1501.09

Lloyd Consumer 0 0  100 0%

1501.09

Total 1501.09 100 %

 CAPITAL EMPLOYED
YEAR 2018
SEGMENT CAPITAL CALCULATION PERCENTAGE
EMPLOYED

Switchgears 332.77 332.77  100 13.41 %

2481.46

Cables 228.89 228.89  100 9.22 %

2481.46

Lighting and Fixtures 250.83 250.83  100 10.11 %

2481.46

Consumer Durables 120.53 120.53  100 4.86 %

2481.46

Lloyd Consumer 1548.44 1548.44  100 62.40 %

2481.46

Total 2481.46 100 %

YEAR 2017
SEGMENT SEGMENT CALCULATION PERCENTAGE
REVENUE

Switchgears 371.38 371.38  100 28.29 %

1312.69

Cables 494.59 494.59  100 37.68 %

1312.69

Lighting and Fixtures 233.66 233.66  100 17.80 %

1312.69

Consumer Durables 213.06 213.06  100 16.23 %

1312.69

Lloyd Consumer 0 0  100 0%

1312.69

Total 1312.69 100 %

Name of the project : Specific Project 2

Analysis of Cash Flow Statement of

Havells India Ltd. Through published
cash flow statement

Source Document : Extract of Cash flow statement from

annual report of Havells India Ltd.

Objectives of the project : To prepare and analyse the Cash Flow

Statement of the company and find the
efficacy in money management of the
Havells India Ltd. for year ended Mar
31, 2018.

Tools for analysis : CASH FLOW STATEMENT

Period of Study : Year 2017-2018

 CASH FLOW STATEMENT ANALYSIS

CASH FLOW FROM OPERATING ACTIVITIES

Cash flow from operating activities has a positive inflow of rupees
1344.94 in the year ended 31st March 2018 and 972.27 crores in the
year ended 31st March 2017. By this we get to know that the company
has good operating activities which means the revenue from operations
is improving.

Havells India Limited has foregone a huge shift in the cash generated
from operating activities due to increase in the trade receivables,
Financial assets, Inventories and provisions. Therefore the flow of cash
is in Positive, that is why company is improving.

CASH FLOW FROM INVESTING ACTIVITIES

Cash flow from investing activities means that Havells India Limited has
invested in fixed assets. Investment in terms of purchasing fixed assets
and investing and non-current trade receivables, which helps the
business to earn more profit.

Net cash used in investing activities has increased to 944.12 in 2018

from 216.00 in 2017 which is due to increase in purchase of current
investments, joint ventures, Bank deposits, subsidiaries and Lloyd
Consumables.

CASH FLOW FROM FINANCING ACTIVITIES

There is a decrease in the cash used in financing activities by Havells
India Limited from Rs.336.46 in 2017 to Rs. 591.88 in 2018.

This shows the increase in issue of shares by the company and also
that the company has been paying the long term borrowings. This will
increase share holders satisfaction and help them invest more.
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