PROJECT REPORT Financial Statement

Analysis

PROJECT REPORT

Financial Statement Analysis

GROUP 5
Aarushi Jain
Aastha Arora
Anuj Agrawal
Apurv Anand
Hrishikesh Thakar

21100
2
21100
5
21102
4
21103
1
21105

Jagpreet Singh Arora

6
21105
9

PROJECT REPORT Financial Statement

Analysis
Acknowledgement
A journey is easier when you
travel together.
Interdependence is certainly
more valuable than
independence. It is a
pleasant aspect that we now
have the opportunity to
express our gratitude to
acknowledge the assistance
and guidance of the friends
without whom the present
project would not have been
possible.
Even though words will not
suffice,
we
take
this
opportunity to express our
deepest thanks to Prof.
Vandana Gupta for her
guidance,
untiring
supervision,
encouragement
and
cooperation
that
has
correctly
molded
our
analytical and managerial
outlook.

PROJECT REPORT Financial Statement Analysis

Table of Contents
Executive
Summary
.
Chapter 1:
Introduction

Company
1. Profile
1
Line Of
1. Business
2

Board of
1. directors
3

Shareholding
1. Pattern
4

Chapter 2 Sales
Mix

Analysis Of Sales
Mix
2.1

Foreign
Trade
2.2

Chapter 3 Analysis of Income Statement and Position

Statement
Ratio
Analysis
3.1

Trend
Analysis
3.2
Peer
Comparison
3.3

Chapter 4 Cash Flow

analysis

Chapter 5 SWOT
Analysis

Textiles
5.1

5.2 Polyester Staple

4
5
5
5
6
6
8
8
9
1
0
1
0
1
7
2
0
2
2
2
5
2
5
2

Fabric

Realty
5.3

References
..

6
2
7
2
8

PROJECT REPORT Financial Statement

Analysis
Executive Summary
This report provides an
analysis and evaluation of the
current and prospective
profitability, liquidity and
financial stability of Bombay
Dyeing And Manufacturing Co.
Ltd. Methods of analysis
include trend analysis, peer
comparison and ratio analysis
such as ratios such as Current
and Quick ratios, Solvency and
Debt ratios and operating
profit margin ratios. Other
calculations include rates of
return on Shareholders Equity
and Total Assets and earnings
per share to name a few. We
have also used the techniques
of cash flow analysis and
SWOT analysis.
Results of data analyzed show
that all ratios are at par with
the industry averages. In
particular, comparative
performance is good in the
areas of profit margins,
liquidity, credit control, and
inventory management. Cash
Flow Analysis reveals that the
company has large differences
in its profit figures and the
cash position. Yet, the
company is able to pay out
dividends to its shareholders.

SWOT analysis reveal that the

company has a large number of
opportunities for growth in all the
three sectors of operations.

Thus the company has a very strong

position in the market and is a market
leader in the textile sector. The
current position of the company is
quite good as compared to its
competitors and it also has a good
promising future.

PROJECT REPORT Financial Statement

Analysis
Chapter 1:
Introduction
1.1 Company Profile
The Bombay Dyeing and
Manufacturing Company
Limited was established
in 1879. It is the flagship
company of the Wadia
Group and is engaged
mainly into the business
of Textiles.

1.2 Line Of Business

TEXTILES
Bombay
Dyeing
established as a single
store brand in 1879, has
now
established
significantly
across
categories
such
as
stylish
bed
linen,
premium
bath
linen,
home furnishings, suiting
and shirting. The entire
range
of
products
includes:
Bedding Range: Bed
sheets,
bed
covers,
quilts,
duvet
covers,
dohars, bed in bag sets,
blankets, pillow cases,
cushion
covers
and
shams
Bedding accessories:
Cushions,
pillows,
duvets,
comforters,
diwan sets and bed
dcor sets
Bath linen: Pool towels,
bath
towels,
hand
towels, face towels, bath
robes and bath mats

Hotel linen: Twills, dobby

weavers,
satins,
jacquards,
high-thread-count-sheeting and
satin fabrics
Industrial Fabrics: Microdot
interlining, fabrics for shoe
uppers, adhesives, abrasives
and leather cloth
REALTY
Bombay Realty is a real estate
and
land
development
company that is a division of
Bombay Dyeing. The company
was created to develop and
manage all lands owned by the
Wadia Group. Bombay Realtys
primary focus is to develop the
10,000 acres owned by the
Wadia
Group into offices, hotels,
service apartments, branded
residences, hospitals, schools,
and retail spaces. Bombay
Realty is currently working on
developing the Island City
Center
and
the
Wadia
International Center which are
mixed use projects located on
prime real estate in India.
POLYESTER STAPLE FIBRE (PSF)
PSF is a substitute of cotton in
the manufacturing of yarn.
Bombay Dyeing ventured into
this business in 2007. It
manufactures
micro
fibers,
semi dull / optically white /
dope dyed black / hollow /
super high tenacity and trilobal
products.

PROJECT REPORT Financial Statement Analysis

1.3 Board of Directors
The Board is headed by Mr. Nusli N. Wadia, Non-Executive Chairman, and is
composed of eminent persons with considerable professional experience in
diverse fields and comprises a majority of Non-Executive Directors. Over two
thirds of the Board consists of Non-Executive Directors and of these, the
majority are independent Directors. The details are given below:

S. No
1
2
3
4
5
6
7
8

NAME
Mr. Nusli N. Wadia
(Chairman)
Mr. Keshub Mahindra
Mr. R. N. Tata
Mr. R. A. Shah
Mr. S. S. Kelkar
Mr.S. Ragothaman
Mr. A. K. Hirjee
Mr. S. M. Palia

9
10
11
12
13

Ms. Vinita Bali

Mr. Ishaat Hussain
Mr. Ness N. Wadia
Mr. Jeh N. Wadia
Mr. Durgesh Mehta

CATEGORY
Non-Executive/Promoter
Independent
Independent
Independent
Independent
Independent
Independent
Independent
Non-Executive/Not
independent
Independent
Non-Executive/Promoter
Managing Director/Promoter
Jt. Managing Director & CFO

1.4 Shareholding Pattern

Shareholding Pattern as on 31st March, 2012
Promoter Group
Insurance Companies
Nationalized Banks
Mutual Funds
FIIs
GDR Holders
Others
Total

No. of Shares
2,15,07,204
22,74,898
38,795
43,70,228
38,39,441
5,65,945
87,10,469
4,13,06,980

%
52.07
5.51
0.09
10.58
9.29
1.37
21.09
100

PROJECT REPORT Financial Statement

Analysis

PROJECT REPORT Financial Statement

Analysis
Chapter 2: Sales Mix
2.1 Analysis of Sales Mix
The sales mix of the company comprises of revenues from textile, PSF and Realty.
PSF makes the highest contribution to the sales mix, that is, about 60%. This is
because the company has implemented first of its kind polymer to PSF technology
used anywhere in the world.
SALES MIX

TURNOVER

TEXTILE

PSF

REALTY

2008-2009

1418 cr

334 cr

811 cr

273 cr

2009-2010

1732 cr

294 cr

867 cr

562 cr

2010-2011

2063 cr

399 cr

1418 cr

240 cr

2011-2012

2403 cr

439 cr

1381 cr

575 cr

3000
2500
2000
1500
1000

5
0
2008-092009-1

PROJECT REPORT Financial Statement

Analysis
Total foreign exchange used and
earned

2.2 Foreign Trade

Particulars
Total foreign exchange used
Total foreign exchange earnings

Textile industry contributes

nearly 14% of the total
industrial production of the
IMPORTS:
country and also contributes
3% to the GDP of the country. Information regarding technology
The country earns about 27% of imported (during last 5 years):
its foreign exchange through
textile export.
Bombay dyeing imported technology
The company trades in Foreign
Markets as well where it
exports products to USA, UK
and several other companies.
The company also imports raw
materials from other countries.
Also, the company had
imported capital goods in the
years 2006-07 and 2007-08.
EXPORTS:
PSF export market expanded
but the margins continued to
remain under pressure. Textile
exports were adversely
impacted by intense
competition coupled with low
demand in the western
markets. New export teams in
Textile division are working on
to expand the customer base
and also revive the old
customers.

of INVISTA Performance Technologies,

U.S.A. for PSF manufacture with PTA
feedstock in the year 2006 and the
technology is now been fully
absorbed by the company. The CIF
value of these is about 0.68 crores in
2011-12.
As regards the imports of raw
material and other material, the CIF
value for the year 2011-12 is 831.33
crores for raw materials and 14.62
crores for stores, spare parts and
catalysts.

PROJECT REPORT Financial Statement

Analysis
Chapter 3:
Analysis of
Position
statement and
Income
Statement
3.1 Ratio Analysis
1) LIQUIDITY RATIOS
Liquidity ratios measure
the short term solvency,
i.e. the firms ability to
pay its current dues

1.

CURRENT
RATIO

2.

QUICK RATIO

Ma
Current Ratio

The current ratio of the

company
has
an
increasing trend. It has
increases from 0.74:1 to
1.61:1 in the last four
years. This company is
moving towards the ideal
ratio of 2:1. This shows
that the company will be
able to meet its current
liabilities on time and has
adequate working capital.

Quick Ratio

Quick ratio has a

decreasing trend. It has
decreased from 2.27:1 in
Mar 2009 to 0.97 in Mar
2012. It has moved towards
the ideal ratio of 1:1

10

PROJECT REPORT Financial Statement

Analysis
3.

INVENTORY
HOLDING PERIOD

Inventory Turnover Ratio

Inventory Holding Period (days)

Inventory holding period has

increased from 31 days in
Mar 2009 to 240 days in Mar
2012. This indicates that the
company is holding more
inventory compared to
previous years.

2) SOLVENCY RATIOS
Solvency ratios depict the
capital structure of the
company. It shows the
different sources of finance
that the company has
employed.

1.

DEBT-EQUITY RATIO

Debt Equity Ratio

11

The D/E ratio of the

company has decreased
from 10.13:1 in Mar 2009
to 0.46:1 in Mar 2012. This
is due to the increase in
Shareholders Funds.

PROJECT REPORT Financial Statement

Analysis
2.

DEBT RATIO:

3.

Debt Ratio

INTEREST COVER

Interest Cover

The debt ratio shows the

ratio of total loans to
total assets. The ratio
increased in the year
2009-10 and declined
thereafter due to low
dependence on loans and
more reliance on internal
sources of finance.

Interest Coverage Ratio

determines the ease with which a
company can pay interest
expense on outstanding debt.
The company has a low interest
coverage ratio of 1.45. This
indicates that the company is
having difficulties in generating
the cash necessary to pay its
interest obligations

100
80
60
40
20
0
Mar ' 09

12

Mar ' 10

Mar ' 09 Mar '

0.19
1

PROJECT REPORT Financial Statement

Analysis

margin is a measurement of what

proportion of a company's revenue is
left over after paying for variable
costs of production such as wages,
raw materials, etc. A healthy
operating margin is required for a
company to be able to pay for its
fixed costs, such as interest on debt.
Here the increasing firms
margin depicts the higher
earnings per rupees of sales.
Thus companys performance
has been improving over the
years.

3) PROFITABILITY RATIOS
1. Operating
Profit
Margin

Operating Profit Margin

This ratio is used to measure a

company's pricing strategy and
operating efficiency. Operating

13

PROJECT REPORT Financial Statement

Analysis

is used to assess a firm's financial

health by revealing the proportion of
money left over from revenues after
accounting for the cost of goods sold.
The firm has higher profit margin
thus works efficiently over the years.
The highest was during FY 10 in
which the cost of goods sold was
least during the 2009-2010. Also the
net profit was negative during year
2008-2009.

18
16
14
12
10
8
6
4
2
0

Gross
Mar ' 09

14
12

2.

10

Gross Profit Margin

8
6
4
2

Gross Profit

Gross profit margin serves as

the source for paying additional
expenses and future savings. It

Mar ' 09 Mar ' 10 Mar ' 1

14

PROJECT REPORT Financial Statement

Analysis
3.

Return

Return on Assets

Return on Assets

500
450
400
350
300
250

An indicator of how profitable a

company is relative to its total
200
assets. ROA gives an idea as to
150
how efficient management is at
100
using its assets to generate
50
earnings. The assets of the
0
company are comprised of both
Mar ' 09
debt and equity. Both of these
types of financing are used to
fund the operations of the
4) FINANCIAL RATIOS:
company. The ROA figure gives
1. Dividends per Share
investors an idea of how
effectively the company is
converting the money it has to
Dividend per share
invest into net income. The
higher the ROA number, the
better, because the company is It measures the percentage of a
earning more money on less
company's net income that is
given to shareholders in the form
investment.
of dividends.
Here the highest ROA for
A higher dividend per share is
the FY 12 is due to the 20%
ensuring a higher profitability margin
increase in sales with
for the firm who is returning back to
respect to 14 percent
the investors and shareholders and
increase in operating
keeping the goodwill of the company
expenses compared with
over the years.
16% increase in sales with
respect to 17% increase in
operating expenses.
15

Mar ' 10

Mar '

Mar ' 09
1

PROJECT REPORT Financial Statement

Analysis
Dividend Per Share
6
5
4
3

Dividend per
share

2
1
0
Mar ' 09

Mar ' 10

Mar ' 11

Mar ' 12

16

PROJECT REPORT Financial Statement

Analysis
3.2 Trend Analysis
Bomba
y
Dyeing
and
Manufa
cturing
Compa
ny
Mar'12
Sources Of Funds
Total Share
Capital
Equity Share
Capital

41.3
41.3

the liabilities side of the balance

sheet shows that the company has
reduced its dependence on external
sources of finance and increased the
use of internal sources of finance
over the years.
Bombay
Dyeing and
Manufacturin
g Company
Mar 12

Application Of
Funds
Gross Block
107.0
Less: Accum.
107.0
Depreciation

Share
Application
0.0 100.0
Net Block
Money
Preference Share
0.0 100.0
Capital Work in
Capital
Progress
Reserves
1751.1 1344.4
Investments
Revaluation
Reserves
0.0
Inventories
Net worth
1792.4 483.9
Secured Loans
760.7
Sundry Debtors
Unsecured Loans
Total Debt
Total Liabilities

55.9
816.6

2609.0

Cash and Bank

Balance
Total Current
125.4
Assets
Loans and
Advances

The loan funds have reduced

Fixed Deposits
by 52.3% from 2008-09 to
2011-12 and the reserves and
surplus have increased by
1751.1% during the same
17
period. The trend analysis of

1,271.8

Mar'11

109.7 1,190.1 102.6 1

342.4

191.6

929.4

94.7

897.3

91.5

102.0

46.6

205.6

93.9

56.0

92.9

1,549.7

292.8 163.8

60.2 100.0

407.5 1,031.7 271.3

137.6

33.9

203.5

50.1

33.3

334.9

5.0

49.9

1,720.6

216.1 1,240.2 155.8

780.3

303.2

0.0

0.0

286.2 111.2
16.1

14.1

PROJECT REPORT Financial Statement

Analysis
Total CA, Loans & 2,501.0
Advances
Differed Credit
0.0
Current Liabilities 947.1

214.3 1,542.4 132.1 1,091.6

100.0
281.9

0.0 100.0
316.5
94.2

0.0 100.0
309.9 92.2

0.0 100.0
335.9 100.0

Provisions
Total CL &
Provisions

32.3

281.4

23.5 204.8

17.0 148.3

11.5 100.0

979.4

281.9

Net Current
Assets
Miscellaneous
Expenses
Total Assets

1,521.6
0.0

340.0

97.9

326.9

94.1

347.4 100.0

185.6 1,202.4 146.7

764.7

93.3

819.8 100.0

0.0

0.0

1.4 100.0

0.0

2,609.0

93.5 1,167.2 100.0

0.0

0.0

125.4 2,365.5 113.7 1,985.5

95.4 2,081.3 100.0

The inventory level has increased by 307.5% from 2008-09 to 2011-12. Also there
is a significant change in the cash position of the firm which shows an increase by
224. 9%. Except for these changes the structure of the company has remained
more or less the same.
Bombay Dyeing and Manufacturing Company
Mar '12

Mar '11

Mar '10

Mar '09

INCOMES
Sales Turnover
Excise Duty
Net Sales
Other Income
Stock
Adjustments
Total Income

2,348.0
6

169.12

123.11

277.52

2,019.4
0 145.451,707.84 123.011,388.36
102.85 231.85

46.46 104.73

44.36

2,224.9
1,916.5
5 165.55
5 142.601,661.38 123.611,344.00
50.87 -342.79
36.12 -243.40
2.2 -14.82 -14.84
12277.4
518.11
9
47.49 1125.36
-2.52 -59.72
4.22
2,793.9
2,000.1
3 209.54
6 150.011,661.06 124.581,333.38

100
100
100
100
100
100

EXPENDITURE
Raw Materials

1,421.8
8

174.38

1,169.4
9 143.42

Power & Fuel

Cost
Employee Cost

103.93
83.48

110.45
162.48

85.68 91.05
60.02 116.82

744.44

417.78

232.72 130.60

Other
Manufacturing
Expenses
Selling and

0 140.13 132.94

822.33 100.85

815.41

100

88.07
96.77

94.1
51.38

100
100

275.2 154.44

178.19

100

105.1

105.41

100

82.87
49.72

99.71

Admin Exp
Miscellaneous
Expenses
Total Expenses
Operating Profit
PBDIT
Interest
PBDT
Depreciation
Other Written Off

18

120.42
2,474.1
5
268.91
319.78

48.9
1,736.9
192.57
4
424.15
227.1
658.53 263.22

121.25

180.57
97.63 174.07
139.21 -102.07
89.15
61.39
0

298.59

110.16
0

40.33

100

135.191,378.46 107.291,284.82
358.20
280.4 442.27
63.4
542.05
282.6 581.96
48.56

100
100
100

94.12
-65.36

200.7 108.52 184.95

81.9 -60.05 -136.39

100
100

59.54 106.84
0
0

100
100

62.08 111.39
0
0

43.24 107.22

55.73
0

PROJECT REPORT Financial Statement

Analysis
Profit Before Tax
Extra-ordinary
items
PBT (Post Extraord
Items)
Tax
Reported Net
Profit
Total Value
Addition
Preference
Dividend
Equity Dividend
Corporate
Dividend Tax
Per share data
(annualised)
Shares in issue
(lakhs)
Earnings Per
Share (Rs)
Equity Dividend
(%)
Book Value (Rs)

77.82

-40.51

27.07

-14.09

-2.97

-2.97

0.28

0.28

74.85

-38.96

27.35

-14.24

15.5 1519.61

5.26 515.69
21.39

-10.99

22.36 -11.64 -192.12

0

0.00

100

100

22.36 -11.64 -192.12

100

3.77 369.61
18.42

1.02

100

-9.46 -194.62

100

59.35

-30.50

1,052.27

224.17

567.45 120.89

556.13 118.47

469.41

100

0
20.66

0
535.23

0
0
14.19 367.62

0
0
9.66 250.26

0
3.86

100
100

3.36

509.09

2.3 348.48

1.6 242.42

0.66

100
100

413.07

106.97

14.37

-28.51

50
433.92

500
992.27

405.47 105.00
5.28

-10.48

35
350
79.56 181.93

386.17 100.00

386.17

100

-9.46

-50.4

100

25
250
54.47 124.56

10
43.73

100
100

4.77

The trend analysis of income side of the income statement shows that the sales
turnover of the company has increased by 69% from 2008-09 to 2011-12.this is a
good sign for the shareholders. Income from other sources for the company has
declined by 242%, thus the company is focusing on its main sources of revenue
The trend analysis of expenditure side of income statement shows that there has
been an increase of 317% in other manufacturing expenses over the period.
The operating profit of the company has increased substantially by 324% and
thus company has been paying higher dividends over the years.

19

PROJECT REPORT Financial Statement Analysis

Financial Ratios

dividend per share

operating profit per
share
net operating profit
per share
earning per share
profitability ratios
operating profit
margin
profit before interest
and tax
gross profit margin
cash profit margin
return on capital
employed
return on net worth
return on assets
return on long term
funds

Grasi
m DCM
Shriram

Bombay
Dyeing
5

Centur
y

22.5

0.4

5.5

65.1 136.67

17.58

43.28

538.64 538.87
14.37 128.34

297.92 520.16
-0.86

2.38

12.08

25.36

5.9

8.32

9.1
9.32

21.16
22.44

2.76
2.78

2.97
2.98

5.58

21.93

3.36

6.03

10.04

14.48

5.86

3.18

3.31
12.93
433.92 992.19

-1.15
1.86
74.73 204.08

11.27

14.57

8.26

4.31

liquidity ratios
current ratio

1.61

1.19

0.86

0.54

quick ratio

0.97

0.81

0.81

0.49

0.46

0.07

1.3

1.8

0.3

0.06

0.64

1.07

1.45

37.96

1.06

1.25

0.46

0.07

1.3

1.8

1.79

41.84

2.04

3.16

1.52
13.05

8.88
11.12

3.95
9.36

6.27
15.09

solvency ratios
debt equity ratio
long term debt equity
ratio
interest coverage
ratio
total debt to owners
funds
financial charges
coverage
ratios
management
efficiency ratios
inventory turnover
ratio
debtors turnover ratio

investments turnover
ratio
fixed assets turonver
ratio
total assets turnover
ratio

20

1.52

8.88

3.95

6.27

1.76

1.59

1.68

0.72

0.85

0.51

1.74

0.91

PROJECT REPORT Financial Statement

Analysis
3.3 Peer
Comparison
The peer comparison shows
that the company is well
aligned with its peer group of
companies in terms of structure
of the company. The companys
liquidity position is meeting the
industry norms and displays a
good liquidity position. The
profitability margins are also
neither too high nor too low
comparison to its peers. It
earns a medium range of profit
margins. The solvency position
of the company is also
confirming to the industry
norms. The management
efficiency ratios also reveal that
the efficiency of management
is satisfactory as far as its level
of competition in the industry is
concerned. However, it needs
to fasten its inventory turnover
ratio which is quite low as
compared to it peers. This has
also been observed as a weak
area for the company as the
SWOT analysis revealed that
the company is yet to improve
its Supply chain management.

21

PROJECT REPORT Financial Statement

Analysis
1

Chapter 4: Cash Flow

Analysis
2011-12
Operating activities

Cash used in financing

activities has also shown a
decline of 82% YOY. The co has
sourced cash from borrowings,
fixed deposits and demand
loans & cash credit.

2010-11

Operating activities
Cash from
operations show that
1 There is a 635.66% increase
there has been 81.5%
in cash flow from operations.
decline as compared to
This can be attributed mainly
the previous year. This
to a decrease in the levels of
can be mainly
inventory and less cash been
attributed to cash stuck
stuck in trade and other
in Trade receivables and
receivables.
loans and advances and
other assets.
Investing activities

Investing activities

1 Cash

used in investing
activities has reduced by
63.42 % YOY. This is mainly
due to inflows resulting from
net inter-corporate deposits
and sale of shares in
subsidiary/joint venture.

Cash used in
investing activities has
shown 88.7% decline on
YOY comparison. This
shows that relatively
fewer amounts have been
Financing activities
spent in acquiring fixed
assets or making
1 There has been an increase
investments. There has
of 292.3% in cash used in
been a decrease in the
financing
activities
on
amount of fixed deposits
account
of
fewer
amounts
of
placed with the banks.
proceeds from borrowings
2
Also, it is seen
and fixed deposits.
that the company has
earned a marginal profit
on its investments in
both the years. We can
say that the company
might be involved in
short term investment
activities.

Financing activities

22

PROJECT REPORT Financial Statement

Analysis
Operating activities

2009-10
Operating activities

1 There

is
a
YOY
701.6% increase in
cash
flows
from
operations majorly on
account of revenue
received from sales.

Investing activities

1 There is a decline in cash

1 There is a decline in cash

flows from operations by

83.08% YOY mainly due to
low sales during the year.

Investing activities

1 Cash used in investing

activities has declined

by 99% YOY on account
of less purchase of
investments and fixed
assets.

used in investing
Financing activities
activities by 434.33%
YOY. This can be
1 Cash flows from financing
attributed to no
activities has decreased by
investments been made
70.68%
YOY
due
to
and negligible sale of
comparatively
less
investments as
borrowings been made and
compared to the
higher interest expenses
previous year.
incurred.
Financing activities

1 There has been a

342.3% YOY decline in
flows from financing
activities leading to a
cash outflow from
financing activities
mainly due to large
scale repayment of
borrowings and demand
loans and cash credit.
2008-09

23

PROJECT REPORT Financial Statement

Analysis
Particulars

Mar '12 Mar '11

Net Profit Before Tax

Net Cash From Operating
Activities
Net Cash (used in)/from
Investing
Activities
Net Cash (used in)/from
Financing
Activities
Net (decrease)/increase
In Cash
and Cash Equivalents
Opening Cash & Cash
Equivalents
Closing Cash & Cash
Equivalents

Mar '10 Mar '09

Mar '08

74.85

26.37

22.19

-193.6

18.01

101.79

551.97

75.03

9.36

55.35

3.55

31.51

-12.45

-2.33

-251.93

-103.78

-597.37

-152.27

62.82

214.28

1.56

-13.89

-89.69

69.85

17.7

4.12

18.86

123.58

53.73

36.03

5.68

4.97

33.89

123.58

53.73

The Cash Flows from Operating Activities have increased substantially in 2010-11
and the Cash used in financing activities has also increased substantially while the
investing activities show a steady trend. Here, we analyze that the company has
earned a lot of revenue in the year 2010-11 and thus repaid its loans to get rid of
interest expenses and started relying more on internal sources of finance.

600
450
300
150
0
2008-09
-150
-300
-450

2009-10

2010-11

2011-12

operating
activities
investing
activities
financing
activities

-600
-750

24

PROJECT REPORT Financial Statement

Analysis
Chapter 5: SWOT
Analysis
5.1 Textiles

300+
exclusive
Franchise
Stores
300+ Large Format store
Counters
2000+ Multi Brand stores

Bombay dyeing is aThe SWOT analysis for the textile

market leader in thesector reveals that the company is
textile sector with morea well known brand in the textile
than
1000
designindustry which forms the strength
launches every year andof the company and the there is a
a wide range of qualities bright future for the company in
in
bath
linen
andterms of growth. It only needs to
its
supply
chain
enhanced focus on valueimprove
management
system.
addition and innovation.
T
h
e
c
o
m
p
a
n
y
h
a
s
9
f
l
a
g
s
h
i
p
s
t
o
r
e
s

STRENGTHS

WEAKNESS
Needs to improve Supply
Chain
Management to

Widest range of designs

Widest range of price points from

549- 10000 to cater to customer in reduce cycle time
every segment
strengthen quality of product
Long term
reduce conversion
sustainable
costs
SWOT
ANALYSIS
model

(textiles)
THREAT

OPPURTUNITY
Can be subject to

Banglad

inflationary pressures
Growth of
esh
organised sector in Levy of excise duty can Within
impact demand
textile,
future
Cheap imports from
Increased
& duty free
disposable income China
imports from
of the middle class

for over
90%.

Unorgani
sed
sector
accounts

25

PROJECT REPORT Financial Statement

Analysis

The plant maintains high safety

standards and is built to exemplary
5.2 Polyester staple Fibre environment and energy conservation
standards.

The PSF plant operates NGSSS

(Next
generation
tippleThe SWOT analysis reveals that the
Spinning Systems) systemscompany is one of the most sought
since 2007, implemented byafter brands for polyster. It is one of
Invista Polyester Technologiesthe three manufacturers of polyester
and Chemtax International Inc,fiber staple which is its greatest
USA-technical
expertisestrength. Also, the Psf is cheaper as
suppliers. This was the first of compared to cotton, thus beneficial
its kind polymer to PSFfor its growth. However, the
technology used anywhere incompany needs to expand its
presence in markets to reap the
the world.
potentials.

WEAKNESS
only in big
STRE Presence
cities
NGTH
Not doing enough to
S
build brand

Implementatio
n of first of its
kind polymer
to PSF
technology
used
anywhere in
the world.
High
energy
conservat
ion
technolog
ies

equity

T ALYSIS lyr)
s OPPURT
(
A
t UNITY
Po
N
e THREAT

S
W
O
Low price
as
compared
to cotton
and other
substitute
fibres.
Continuou
s rising
demand
for textile
products,
demand
for PSF

will increase
in long run

L
o
w
c
o
t
t
o
n
p
r
i
c

ede oil
sprice
s, the
aco.
nCan
dface
sever
he
i cost
gpress
hures

cott
on
can
affec
t
dem
and
adve
rsely
.

Gov
t
cImproved poli
r availabilli cy
uty of
in

exp
ort
of
raw
cott
on
coul
d
affe
ct
the
co.
s
ope
rati
ons

26

PROJECT REPORT Financial Statement

Analysis
5.3 Realty
Bombay realty seeks to create
mixed use developments that
offer
you
the
ability
to
LIVE.WORK.PLAY. all at one
place.
They are developing properties
which are gated communities,
having private roads, advanced
security
and
world
class
infrastructure. It is Built on the
strong fundamentals of trust
and
quality,
fulfilling
the
aspirations for an evolved
lifestyle.
Bombay realty has announced
two mixed use projects, which
are
presently
under
development. Bit these- the
Island City Centre (ICC) and
The Wadia international centre
(WIC) are proposed to be built
in line with our philosophy of
LIVE.WORK.PLAY.
The SWOT analysis of the
sector reveals that the scarcity
of land in the City and
increasing congestion on road
as
well
as
pressure
on
infrastructure will lead to
higher demand for residential
accommodation especially in
Central
Mumbai
which
is
equidistant
from
the
commercial hubs of South
Mumbai
and
Bandra-Kurla
Complex in North Mumbai.
Thus there is a huge potential,
however it does face some
environmental
and political
threats in terms of strictness of
authorities and increasing rate
of interest in the Economy.

STRENGTHS
WEAKNESS

Integrated mixed
use developments
within Mumbai
gives a
competitive edge
Aggressive
investment in
Brand building
and consumer
centric approach
as diffrentiation
strategy

S
W

residential property
prices has remained
stagnant druing past 5
months

significant rise in
interest rate on home
loans
Commercial space
demandfor
both sale
and leas
remain
weak

O
T

Scarcity ofwill lead toLarg

e no
land in city,higher
of
demand
for
increasing
new
residential
on
road
proj
accomodation
congestion
ects
and
in
infrastructu
vicin
re
ity
inadequacy
lead

URTUNITY
ANAL (Realty)
YSIS
OPP THREAT

ing ntrov
to ersies
inte involv
nse ing
com builde
peti rs
tion made
autho
c
rities
o
beco

m
e

r
e

e
v
e
n

s
t
r
i
c
t

m
o

27

PROJECT REPORT Financial Statement Analysis

References
www.investopedia.com
www.indiainfoline.com
www.bseindia.com
www.nse-india.com
www.bombaydyeing.com
Annual report 2011-12, Bombay Dyeing and Manufacturing
Company Limited Annual report 2010-11, Bombay Dyeing and
Manufacturing Company Limited Annual report 2009-10,
Bombay Dyeing and Manufacturing Company Limited Annual
report 2008-09, Bombay Dyeing and Manufacturing Company
Limited

28