FINANCIAL STATEMENT ANALYSIS

Tools and Techniques

Multi step income statement
FORMAT OF MULTI STEP INCOME STATEMENT
Gross sales
Less: Excise Duty
Net Sales
Material Cost
Manufacturing expenses
Cost of Goods Sold
GP
Employees remuneration(other than factory)
Administrative Exp, Selling and other Expenses
add: other incomes(operating)
PBDIT
Depreciation
Amortisation
impairment
Operating profit(OP/PBIT)
Interest Charges and finance charges
add: other incomes(non- operating)
Profit Before tax and extra ordinary items(PBTEOT)
add or Less: extraordinary items
PBT for the year
add or Less:prior year adjustments
PBT
provision for tax:
Current Income tax
add or less: Deffered Tax liability /asset
add: fringe benefits
add or less: tax adjustments for previous year
Total Income Tax
NP/PAT

Sales
Less: Excise Duty
Net Sales
wind power generated and captively consumed
other income(includes op 1047.1 and 88.37)
Expenditure
Materials
other expenses
Interest Charges and finance charges
Depreciation
Less: Expenses capitalised
Compensation paid under VRS
Export incentives incurred in previous year written off
PBT -Y
provision for tax:
Current Income tax
add or less: Deffered Tax liability /asset
add: fringe benefits tax
add or less: tax adjustments for previous year
Add: Tax credits for earlier years
NP/PAT

2007
106060.9
13138.6
92922.3
330.5
7507.7
100760.5

2006
85498.6
10804.8
74693.8
199.5
6170.2
81063.5

69010.1
12344.8
53.4
1902.6
83310.9
320.5
82990.4
385.7
103.9
83480
17280.5

53246
10118.4
3.4
1910
65277.8
248.1
65029.7
226.4

5005.5
-134.1
30
8.6
4910
12370.5

5135.5
-394.4
50
8.7
4799.8
225.1
11232.7

2007
106060.9
13138.6
92922.3
69010.1
12344.8
320.5

2006
85498.6
10804.8
74693.8
53246
10118.4
248.1

65256.1
15807.4

MULTI STEP ANALYSIS

Sales
Less: Excise Duty
Net Sales
Materials
other expenses
Less: Expenses capitalised
Add:other operating incomes
wind power generated and captively consumed
other income
PBIDT
Depreciation
OP/PBIT
Interest Charges and finance charges
other income
PBTEOT
Extraordinary items
Compensation paid under VRS
Export incentives incurred in previous year written off
PBT Y
add or less: tax adjustments for previous year
PBT
provision for tax:

330.5
199.5
1047.1
88.37
13265.5 11865.37
1902.6
1910
11362.9 9955.37
53.4
3.4
6460.6 6081.83
17770.1 16033.8
385.7
103.9
17280.5
8.6
17271.9

226.4
15807.4
8.7
15798.7

Current Income tax

add or less: Deffered Tax liability /asset
add: fringe benefits tax
Tax credits for earlier years
total tax
NP/PAT

5005.5
-134.1
30
4901.4
12370.5

5135.5
-394.4
50
-225.1
4566
11232.7

COMPARITIVE
2007
2006 Increase/decrease over base year
Sales
106060.9 85498.6
20562.3
Less: Excise Duty
13138.6 10804.8
2333.8
Net Sales
92922.3 74693.8
18228.5
Materials
69010.1
53246
15764.1
other expenses
12344.8 10118.4
2226.4
Less: Expenses capitalised
320.5
248.1
72.4
Add:other operating incomes
wind power generated and captively consumed
330.5
199.5
131
other income
1047.1
88.37
958.73
PBIDT
13265.5 11865.37
1400.13
Depreciation
1902.6
1910
-7.4
OP/PBIT
11362.9 9955.37
1407.53
Interest Charges and finance charges
53.4
3.4
50
other income
6460.6 6081.83
378.77
PBTEOT
17770.1 16033.8
1736.3
Extraordinary items
Compensation paid under VRS
385.7
226.4
159.3
Export incentives incurred in previous year written off
103.9
103.9
PBT Y
17280.5 15807.4
1473.1
add or less: tax adjustments for previous year
8.6
8.7
-0.1
PBT
17271.9 15798.7
1473.2
provision for tax:
Current Income tax
5005.5
5135.5
-130
add or less: Deffered Tax liability /asset
-134.1
-394.4
260.3
add: fringe benefits tax
30
50
-20
Tax credits for earlier years
-225.1
225.1
total tax
4901.4
4566
335.4
NP/PAT
12370.5 11232.7
1137.8

%
24.05
21.60
24.40
29.61
22.00
29.18
65.66 other income change is more than operations
1084.90 other income change is more than operations
11.80
-0.39 use of asset for higher revenues still lower dep
14.14
1470.59
6.23
10.83
70.36
0.00
9.32
-1.15
9.32 PBT is low even though incomes are high because
of Int and finance charges
-2.53
-66.00
-40.00
-100.00
7.35
10.13

COMMON SIZED
comparison between two or more companies in the same industry or different industries with different
capital structure and revenues.
2007 %
2006
Sales
106060.9
114.14 85498.6
Less: Excise Duty
13138.6
14.14 10804.8
Net Sales
92922.3
100.00 74693.8
Materials
69010.1
74.27
53246
other expenses
12344.8
13.29 10118.4
Less: Expenses capitalised
320.5
0.34
248.1
Add:other operating incomes
wind power generated and captively consumed
330.5
0.36
199.5
other income
1047.1
1.13
88.37
PBIDT
13265.5
14.28 11865.37
Depreciation
1902.6
2.05
1910
OP/PBIT
11362.9
12.23 9955.37
Interest Charges and finance charges
53.4
0.06
3.4
other income
6460.6
6.95 6081.83
PBTEOT
17770.1
19.12 16033.8
Extraordinary items
Compensation paid under VRS
385.7
0.42
226.4
Export incentives incurred in previous year written off
103.9
0.11
PBT Y
17280.5
18.60 15807.4
add or less: tax adjustments for previous year
8.6
0.01
8.7
PBT
17271.9
18.59 15798.7
provision for tax:
0.00
Current Income tax
5005.5
5.39
5135.5
add or less: Deffered Tax liability /asset
-134.1
-0.14
-394.4
add: fringe benefits tax
30
0.03
50
Tax credits for earlier years
0.00
-225.1
total tax
4901.4
5.27
4566
NP/PAT
12370.5
13.31 11232.7

%
114.47
14.47
100
71.29
13.55
0.33
0.27
0.12
15.89
2.56
13.33
0.00
8.14
21.47
0.30
0.00
21.16
0.01
21.15
0.00
6.88
-0.53
0.07
-0.30
6.11
15.04