DATA ANALYSIS AND INTERPRETATIONS
Balance sheet of Shree Constructions
For 2020-2021
Liabilities As at 31-March-2021 Assets As at 31-March-2021
Capital Account 93,51,611 Fixed Assets 79,40,293
Loans (liability) 1,76,75,369 Ashok Leyland Tipper - 5897 16,813
Secured Loans 52,77,418 Ashok Leyland Tipper - 8543 12,859
Unsecured Loans 1,23,97,951 Bolero 4,28,043
Current Liabilities 57,96,582 Epson Printer 17,236
Sundry Creditors 57,96,582 Instrument 42,870
Profit & Loss A/c JCB 13,38,962
Opening Balance Laptop 12,971
Current period 1,73,498 Laptop Purchase 59,556
Less: Transferred 1,73,498 MAHINDRA XUV 500 CAR 10,90,005
Neo Car Purchase 27,41,348
Printer 13,016
Tractors Nos 6 21,66,614
Current Assets 2,48,83,269
Closing Stock 1,04,24,679
Deposits (Asset) 29,63,970
Sundry Debtors 65,00,509
Cash-in-hand 12,00,620
Bank Accounts 2,88,589
Advance Tax, TDS & GST 34,04,902
Total 3,28,23,562 Total 3,28,23,562
Profit and Loss A/c of Shree Constructions
For 2020-2021
Particulars As on 31-march-2021 Particulars As on 31-march-2021
Opening Stock 75,55,890 Sales Account 1,33,58,079
Work in progress 75,55,890 Sales @12% 1,10,13,019
Purchase Accounts 1,37,42,523 Sales @18% 23,45,060
Interstate Purchase @18% 16,362
Interstate Purchase @28% 1,64,719 Closing Stock 1,04,24,679
Purchase @12% 18,700 Work in Progress 1,04,24,679
Purchase @18% 82,29,649
Purchase @28% 53,09,031
Purchase @5% 4,062
Direct Expenses 1,50,000
Concrete Expenses & Others 1,50,000
Gross Profit c/o 23,34,345
2,37,82,758 2,37,82,758
Indirect Expenses 21,85,320 Gross Profit b/f 23,34,345
Bank charges 6,046
Depreciation 9,81,646 Indirect Incomes 24,474
Insurance @18% 1,27,399 Interest on FD 23,759
Insurance IGST @12% 16,049 Interest on IT Refund 712
Insurance IGST @18% 3,841 Round Off 3
Interest Paid 88,261
Interest on Car Loan 88,450
LIC 1,82,519
Salaries 50,000
Transportation Charges 15,767
Travelling Expenses 4,86,873
Vehicle Maintenance 1,38,469
Net Profit 1,73,498
Total 23,58,818 Total 23,58,818
Ratio Analysis For the year 2020-2021
1. Liquidity Ratio
i. Current Ratio = Current Asset / Current Liabilities
= 2,48,43,269 / 57,96,582
= 4.30
ii. Quick Ratio = (Current Asset – Inventory) / Current Liabilities
= (2,48,43,269 – 1,04,24,679) / 57,96,582
= 2.50
iii. Cash Ratio = (Cash + marketable securities) / Current Liabilities
= 44,53,179 / 57,96,582
= 0.80
2. Leverage Ratio
Equity Ratio = Shareholder’s Equity / Net Assets
= 93,51,611 / (2,48,83,269 – 57,96,582)
= 93,51,611 / 1,90,86,687
= 0.50
Debt Ratio = Total Debt / Net Assets
= 57,96,582 / (2,48,83,269 – 57,96,582)
= 57,96,582 / 1,90,86,687
= 0.30
Debt to Equity = Total Debt / Shareholder’s Equity
= 57,96,582 / 93,51,611
= 0.62
Debt to total assets = Total Debt / Total Assets
= 57,96,582 / 3,28,23,562
= 0.20
3. Activity Ratio
Total Assets Turnover = Sales / Total Assets
= 1,33,58,079 / 3,28,23,562
= 0.41
Fixed Assets Turnover = Sales / Fixed Assets
= 1,33,58,079 / 79,40,293
= 1.70
Capital Turnover = Total Assets – Current Liabilities
= 3,28,23,562 – 57,96,582
= 2,70,26,980
Current Assets Turnover = Sales / Current Assets
= 1,33,58,079 / 2,48,83,269
= 0.54
Inventory Turnover = Sales / Inventory
= 1,33,58,079 / 1,04,24,679
= 1.30
Receivable Turnover = Sales / Receivables
= 1,33,58,079 / 65,00,509
= 2.05
Payable Turnover = Purchases / Payables
= 1,37,42,523 / 57,96,582
= 2.40
4. Probability Ratio
Gross Profit Ratio = (Gross Profit / Sales) * 100
= (23,34,345 / 1,33,58,079) * 100
= 17.50%
Net Profit Ratio = (Net Profit / Sales) * 100
= (1,73,498 / 1,33,58,079) * 100
= 1.30%
Operating Profit Ratio = (Operating Profit / Sales) * 100
= (1,38,92,523 / 1,33,58,079) * 100
= 104%
Balance sheet of Shree Constructions
For 2021-2022
Liabilities As at 31-March-2022 Assets As at 31-March-2022
Capital Account 89,68,000 Fixed Assets 42,12,648
Loans (liability) 1,41,69657 Ashok Leyland Tipper - 5897 13,898
Secured Loans 62,80,243 Ashok Leyland Tipper - 8543 10,423
Unsecured Loans 78,89,414 Bolero 3,85,933
Current Liabilities 1,61,01,613 Epson Printer 15,572
Sundry Creditors 1,61,01,614 Instrument 38,671
Profit & Loss A/c JCB 11,04,661
Opening Balance Laptop 16,619
Current period 3,37,930 Laptop Purchase 82,594
Less: Transferred (-)3,37,930 MAHINDRA XUV 500 CAR 9,29,418
Printer 7,078
Tractors Nos 6 16,07,781
Current Assets 3,50,26,623
Closing Stock 95,46,789
Deposits (Asset) 40,32,852
Sundry Debtors 71,40,445
Cash-in-hand 13,839
Bank Accounts 84,72,574
Advance Tax, TDS & GST 58,20,124
Total 3,92,39,271 Total 3,92,39,271
Profit and Loss A/c of Shree Constructions
For 2021-2022
Particulars As on 31-march-2022 Particulars As on 31-march-2022
Opening Stock 1,04,24,679 Sales Accounts 82,88,550
Work in progress 1,04,24,679 Sales @ 18% 82,88,550
Purchase Accounts 39,95,207 Closing Stock 95,46,789
Material Purchases 58,255 Work in Progress 95,46,789
Purchases Materials @18% 20,27,062
Purchases Materials @28% 18,92,270
Purchases Materials @12% 17,620
Direct Expenses 2,36,500
Labour Expenses 2,36,500
Gross Profit c/o 31,78,953
1,78,35,339 1,78,35,339
Indirect Expenses 28,93,712 Gross Profit b/f 31,78,953
Bank charges 3,029
Depreciation 7,92,041 Indirect Incomes 52,689
Interest Paid 2,15,860 Bank Interest Received 52,689
Interest on Capital 9,48,109
Round Off 13
Salaries 3,99,550
Staff welfare Expenses 45,620
Travelling Expenses 1,13,616
Vehicle Insurance 64,236
Vehicle Maintenance 3,11,637
Net Profit 3,37,930
Total 32,31,642 Total 32,31,642
Ratio Analysis For the year 2021-2022
1) Liquidity Ratio
a) Current Ratio = Current Asset / Current Liabilities
= 3,50,26,623 / 1,61,01,614
= 2.20
b) Quick Ratio = (Current Asset – Inventory) / Current Liabilities
= (3,50,26,623 – 95,46,789) / 1,61,01,614
= 1.60
c) Cash Ratio = (Cash + marketable securities) / Current Liabilities
= 1,25,19,265 / 1,61,01,614
= 0.80
2) Leverage Ratio
Equity Ratio = Shareholder’s Equity / Net Assets
= 89,68,000 / (3,50,26,623 – 1,61,01,613)
= 89,68,000 / 1,89,25,010
= 0.50
Debt Ratio = Total Debt / Net Assets
= 1,61,01,613 / (3,50,26,623 – 1,61,01,613)
= 1,61,01,613 / 1,89,25,010
= 0.90
Debt to Equity = Total Debt / Shareholder’s Equity
= 1,61,01,613 / 89,68,000
= 1.80
Debt to total assets = Total Debt / Total Assets
= 1,61,01,613 / 3,92,39,271
= 0.41
3) Activity Ratio
Total Assets Turnover = Sales / Total Assets
= 82,88,550 / 3,92,39,271
= 0.21
Fixed Assets Turnover = Sales / Fixed Assets
= 82,88,550 / 42,12,648
= 1.97
Capital Turnover = Total Assets – Current Liabilities
= 3,92,39,271 – 1,61,01,613
= 2,31,37,658
Current Assets Turnover = Sales / Current Assets
= 82,88,550 / 3,50,26,623
= 0.24
Inventory Turnover = Sales / Inventory
= 82,88,550 / 95,46,789
= 0.90
Receivable Turnover = Sales / Receivables
= 82,88,550 / 71,40,445
= 1.20
Payable Turnover = Purchases / Payables
= 39,95,207 / 1,61,01,613
= 0.25
4) Probability Ratio
a) Gross Profit Ratio = (Gross Profit / Sales) * 100
= (31,78,953 / 82,88,550) * 100
= 38.35%
b) Net Profit Ratio = (Net Profit / Sales) * 100
= (3,37,930 / 82,88,550) * 100
= 0.40%
c) Operating Profit Ratio = (Operating Profit / Sales) * 100
= (80,52,050 / 82,88,550) * 100
= 97%
Balance sheet of Shree Constructions
For 2022-2023
Liabilities As at 31-March-2023 Assets As at 31-March-2023
Capital Account 1,06,72,892 Fixed Assets 40,49,121
Loans (liability) 2,19,56,113 Ashok Leyland Tipper - 5897 10,546
Secured Loans 1,29,79,570 Ashok Leyland Tipper - 8543 8,754
Unsecured Loans 89,76,543 Bolero 3,27,933
Current Liabilities 86,67,872 Epson Printer 11,865
Sundry Creditors 86,67,872 Instrument 32,329
Profit & Loss A/c JCB 8,89,571
Opening Balance Laptop 10,791
Current period 3,87,922 Laptop Purchase 76,977
Less: Transferred (-)3,87,922 MAHINDRA XUV 500 CAR 7,99,021
Printer 5,073
Tractors Nos 6 13,17,891
Bolero van 4,91,300
Bike 57,800
Stationary 9,270
Current Assets 3,73,47,756
Closing Stock 84,79,654
Deposits (Asset) 62,79,800
Sundry Debtors 77,51,953
Cash-in-hand 80,790
Bank Accounts 80,57,259
Advance Tax, TDS & GST 66,98,300
Total 4,13,96,877 Total 4,13,96,877
Profit and Loss A/c of Shree Constructions
For 2022-2023
Particulars As on 31-march-2023 Particulars As on 31-march-2023
Opening Stock 95,46,789 Sales Accounts 1,05,52,833
Work in progress 95,46,789 Sales @ 12% 47,14,325
Purchase Accounts 59,40,844 Sales @ 18% 33,03,950
Material Purchases 7,65,455 Sales @ 5% 25,34,558
Purchases Materials @18% 19,04,485 Closing Stock 84,79,654
Purchases Materials @28% 30,47,867 Work in Progress 84,79,654
Purchases Materials @12% 1,23,037
Direct Expenses 2,36,500
Labour Expenses 2,36,500
Gross Profit c/o 33,08,354
1,90,32,487 1,90,32,487
Indirect Expenses 28,93,712 Gross Profit b/f 33,08,354
Bank charges 4,542
Depreciation 7,49,763
Interest Paid 1,42,900
Interest on Capital 8,72,642
Salaries 4,12,500
Staff welfare Expenses 42,370
Travelling Expenses 1,99,780
Vehicle Maintenance 2,78,648
Staff room rent & exp. 1,58,650
Transportation of goods 1,01,007
Net Profit 3,87,922
Total 33,08,354 Total 33,08,354
Ratio Analysis For the year 2022-2023
1) Liquidity Ratio
Current Ratio = Current Asset / Current Liabilities
= 3,73,47,756 / 86,67,872
= 4.30
Quick Ratio = (Current Asset – Inventory) / Current Liabilities
= (3,73,47,756 – 84,79,654) / 86,67,872
= 3.30
Cash Ratio = (Cash + marketable securities) / Current Liabilities
= 1,44,17,849 / 86,67,872
= 1.70
2) Leverage Ratio
Equity Ratio = Shareholder’s Equity / Net Assets
= 1,06,72,892 / 3,27,29,005
= 0.30
Debt Ratio = Total Debt / Net Assets
= 86,67,872 / 3,27,29,005
= 0.25
Debt to Equity = Total Debt / Shareholder’s Equity
= 86,67,872 / 1,06,72,892
= 0.81
Debt to total assets = Total Debt / Total Assets
= 86,67,872 / 4,13,96,877
= 0.20
3) Activity Ratio
Total Assets Turnover = Sales / Total Assets
= 1,05,52,833 / 4,13,96,877
= 0.26
Fixed Assets Turnover = Sales / Fixed Assets
= 1,05,52,833 / 40,49,121
= 2.60
Capital Turnover = Total Assets – Current Liabilities
= 4,13,96,877– 86,67,872
= 3,27,29,005
Current Assets Turnover = Sales / Current Assets
= 1,05,52,833 / 3,73,47,756
= 0.30
Inventory Turnover = Sales / Inventory
= 1,05,52,833 / 84,79,654
= 1.25
Receivable Turnover = Sales / Receivables
= 1,05,52,833 / 77,51,953
= 1.36
Payable Turnover = Purchases / Payables
= 59,40,844 / 86,67,872
= 0.70
4) Probability Ratio
1. Gross Profit Ratio = (Gross Profit / Sales) * 100
= (33,08,354 / 1,05,52,833) * 100
= 31.35%
2. Net Profit Ratio = (Net Profit / Sales) * 100
= (3,87,922 / 1,05,52,833) * 100
= 3.68%
3. Operating Profit Ratio = (Operating Profit / Sales) * 100
= (1,03,16,333 / 1,05,52,833) * 100
= 97%
ANALYSIS OF THE COMPANY
Ratio Analysis of Company is shown in Chart
1) Liquidity Ratio
Chart Title
5
4.5
3.5
2.5
1.5
0.5
0
2020-21 2021-22 2022-23
Current Ratio Quick Ratio Cash Ratio
Analysis
Liquidity Ratios of the company doesn’t have any sequence.
The Liquidity capability of the company decreases from
2020-21 to 2021-22, later it increased in 2022-23.
At the present values of the company the ability to clear the
debts and avoid defaulting on payments is easier.
2) Leverage Ratio
Chart Title
4
3.5
2.5
1.5
0.5
0
2020-21 2021-22 2022-23
Equity Ratio Debt Ratio Debt to Equity Debt to Total Assets
Analysis
As per accounting the Leverage Ratio of the company
should be 0.5 or less.
As per the data mentioned above the Leverage Ratios of the
company are mostly high in the last three years.
So, the company has more debts compared to shareholders
equity.
The company making profits but the Leverage Ratios
indicates that the company has more debts to clear.
3) Activity Ratio
Chart Title
2022-23
2021-22
2020-21
0 0.5 1 1.5 2 2.5 3
PT RT IT CAT FAT TAT
Analysis
The Activity Ratios are used to determine the efficiency of
the organization in utilizing its assets for generating cash and
revenue.
As per the data mentioned above, the ratios are greater than
1, so the efficiency of the company to generate cash and
revenue is possible with no risk and debts.
4) Probability Ratio
Chart Title
1.2
0.8
0.6
Operating Profit
0.4
Net Profit
0.2
Gross Profit
0
2020-21 2021-22 2022-23
Gross Profit Net Profit Operating Profit
Analysis
As per the data mentioned above, the ratios are getting
positive so the company has the good profile in making
profits while it is in loss in the starting years.
The financial health of the company is good based on the
data that I mentioned above.
As per the data above the operating profit is constantly
moving while compared to Gross Profit and Net Profit.
The Gross Profit is increasing gradually but the Net Profit
doesn’t have any particular change.
