3/27/2019 Financial Statement

Analysis
Of

Indian Hotels Co. Ltd.

Pallav Kumar Goel

Universal Business School
SSM1/1816
BALANCE SHEET OF IHCL AS AT In Rs. Crore Comparative Common Size (%)
Increase or
31-Mar-18 31-Mar-17 Decrease Percentage 31-Mar-18 31-Mar-17
EQUITY and LIABILITIES In Rs. Crore
Equity Share Capital 118.93 98.93 20 20.21631457 1.543797615 1.58618688
Total Share Capital 118.93 98.93 20 20.21631457 1.543797615 1.58618688
Reserves and Surplus 4,275.03 2,668.27 1606.76 60.21729435 55.49298846 42.7815109
Total Reserves and Surplus 4,275.03 2,668.27 1606.76 60.21729435 55.49298846 42.7815109
Total Equity 4,393.96 2,767.20 1626.76 58.78722174 57.03678608 44.3676978
NON-CURRENT LIABILITIES
Long Term Borrowings 1,733.88 1,494.54 239.34 16.01429202 22.50701933 23.9625972
Deferred Tax Liabilities [Net] 348.81 290.94 57.87 19.89069911 4.52780666 4.6647651
-
Other Long-Term Liabilities 252.54 263.53 -10.99
4.170303191 3.278152272 4.22528888
Long Term Provisions 56.9 48.78 8.12 16.64616646 0.738603248 0.78211054
Total Non-Current Liabilities 2,392.13 2,097.79 294.34 14.03095639 31.05158151 33.6347618
CURRENT LIABILITIES
Short Term Borrowings 0 7.31 -7.31 -100 0 0.11720435
Trade Payables 208.02 177.19 30.83 17.39940177 2.700250398 2.84096284
-
Other Current Liabilities 601.39 1,100.57 -499.18
45.35649709 7.806478161 17.6459082
Short Term Provisions 108.23 86.91 21.32 24.53112415 1.404903858 1.3934651
-
Total Current Liabilities 917.64 1,371.98 -454.34
33.11564309 11.91163242 21.9975405
Total Equity and Liabilities 7,703.73 6,236.97 1466.76 23.51718863 100 100
ASSETS
NON-CURRENT ASSETS
Tangible Assets 2,367.82 2,149.41 218.41 10.16139313 30.73602008 34.4624072
-
Intangible Assets 30.68 38.12 -7.44
19.51731375 0.398248641 0.61119422
Capital Work-In-Progress 63.4 107.88 -44.48 -41.2309974 0.82297796 1.72968605
Intangible Assets Under
1.61 0.03 1.58
Development 5266.666667 0.020898967 0.000481
Fixed Assets 2,463.51 2,295.44 168.07 7.321907782 31.97814565 36.8037685
Non-Current Investments 3,860.01 2,964.03 895.98 30.22843898 50.105728 47.5235571
-
Long Term Loans and Advances 5.35 37.78 -32.43
85.83906829 0.069446878 0.60574285
Other Non-Current Assets 444.62 380.53 64.09 16.8422989 5.771489915 6.10119978
Total Non-Current Assets 6,773.49 5,677.78 1095.71 19.29821162 87.92481045 91.0342682
CURRENT ASSETS
Current Investments 301.45 65.12 236.33 362.9146192 3.913039528 1.04409673
Inventories 51.47 47.56 3.91 8.221194281 0.668117912 0.76254976
Trade Receivables 256.81 213.74 43.07 20.15065032 3.333579967 3.42698458
Cash and Cash Equivalents 129.01 22.63 106.38 470.0839593 1.674643322 0.36283644
-
Short Term Loans and Advances 20.66 52.68 -32.02
60.78208049 0.268181777 0.84464091
Other Current Assets 170.84 157.46 13.38 8.497396164 2.217627046 2.52462333
Total Current Assets 930.24 559.19 371.05 66.3549062 12.07518955 8.96573176
Total Assets 7,703.73 6,236.97 1466.76 23.51718863 100 100

BAD GOOD

INTERPRETATION OF BALANCE SHEET

1) There is an increase in total Assets in FY 2018 by 23.5% which is good for a company like IHCL as
they are in business of hotels.
2) There is a decrease in current liabilities from Rs. 1300 crores to around 917 crores which is very
good, and it implies that company have purchased assets and at the same time reduced their
liabilities, tough there is an increase in non-current liabilities.
3) As compared to the FY 2017, the company have reduced their noncurrent assets when
compared with the total assets of that year.
Current Assets in the year was 12% as compared to total asset in FY2018, but it was 8% as
compared to total assets in FY2017.
4) The non-current liabilities have increased as compared to the previous year but at the same
time they are less, when both the liabilities are compared with the total liabilities of the
respective year.
INTERPRETATION OF PROFIT AND LOSS STATEMENT
1) Operating income during the year rose 7.6% on a year-on-year (YoY) basis.

2) Total revenue rose by 7.3% in FY 2018 as compared to FY 2017.

3) Other income declines by 2.4%.

4) Profit before tax have increased by 8% as compared to FY 2017.

5) Net profit for the year increased by 3.2%.

6) Total expenses increase by 3.09 % as compared to FY 2017, but on other hand they have
decreased as a percentage of total revenues of FY 2018 as compared to FY 2017.