1.

ANALYSIS PART IS CALCULATED:

I tried my best to get this data , cost details cant be disclosed in detail being a
confidential data .

Cost Sheet of kan Enterprise for the period ended (2018-19)

Particulars Rs. Rs.

Direct materials consumed
Opening stock of raw materials 40,00,000
ADD: Purchase of raw materials 2,50,00,000
Carriage on purchases 10,00,000
30,000,000
LESS: Closing stock of raw materials 45,00,000 25,500,000,
Direct Wages 16,00,000
Direct expenses 6,00,000
PRIME COST 27700000
ADD: Factory Overheads 55,00,000
33200000
LESS: Sale of Scrap 1,00,000
33100,000
ADD: Work in Progress(Beginning) 15,00,000
34600,000
LESS: Work in Progress(closing) 17,00,000
WORKSCOST or FACTORY 32900000
COST
ADD: Administrative Overheads 4,00,000
COST OF PRODUCTIONOF 33300000
GOODS SOLD
ADD: Opening stock of finished 48,00,000
goods
38100000
LESS: Closing stock of finished 55,00,000
goods
COST OF GOODS SOLD 32600,000

ADD: Selling & Distribution 15,00,000

Overhead
COST OF SALES or TOTAL 34100,000
COST
NET PROFIT 20% 6820,000
SALES 40920,000
Interpretation
The company sold the products for Rs.4,09,20,000/- . The cost price of the raw
material is rs.2,55,00,000/- and all overheads including direct wages, expenses and
other over heads costing (percentage of overheads is 18% and they have added the
profit margin @20

2.ANALYSIS PART IS CALCULATED:

I tried my best to get this data , cost details cant be disclosed in detail being a
confidential data

Cost Sheet of kan Enterprise for the period ended (2017-18)

Particulars Rs. Rs.

Direct materials consumed
Opening stock of raw materials 50,00,000
ADD: Purchase of raw materials 2,30,00,000
Carriage on purchases 20,00,000
3,00,00,000
LESS: Closing stock of raw materials 45,00,000 2,55,00,000,
Direct Wages 17,00,000
Direct expenses 7,00,000
PRIME COST 2,79,00,000
ADD: Factory Overheads 56,00,000
3,33,00,000
LESS: Sale of Scrap 1,00,000
3,32,00,000
ADD: Work in Progress(Beginning) 15,00,000
3,47,00,000
LESS: Work in Progress(closing) 17,00,000
WORKSCOST or FACTORY 3,30,00,000
COST
ADD: Administrative Overheads 4,00,000
COST OF PRODUCTIONOF 3,34,00,000
GOODS SOLD
ADD: Opening stock of finished 49,00,000
goods
3,83,00,000
LESS: Closing stock of finished 55,00,000
goods
COST OF GOODS SOLD 4,38,00,000
 ADD: Selling & Distribution 16,00,000
Overhead
COST OF SALES or TOTAL 4,54,00,000
COST
NET PROFIT 19% 8,626,000
SALES 54,026,000

Interpretation

The company sold the products for Rs.54,026,000/- . The cost price of the raw
material is rs.2,55,00,000/- and all overheads including direct wages, expenses and
other over heads costing (percentage of overheads is 18% and they have added the
profit margin @18% ).

3.ANALYSIS PART IS CALCULATED:

I tried my best to get this data , cost details cant be disclosed in detail being a
confidential data .

Cost Sheet of kan Enterprise for the period ended (2016-17)

Particulars Rs. Rs.

Direct materials consumed
Opening stock of raw materials 60,00,000
ADD: Purchase of raw materials 1,30,00,000
Carriage on purchases 20,00,000
2,10,00,000
LESS: Closing stock of raw materials 35,00,000 1,75,00,000,
Direct Wages 16,00,000
Direct expenses 7,00,000
PRIME COST 1,98,00,000
ADD: Factory Overheads 57,00,000
2,55,00,000
LESS: Sale of Scrap 1,00,000
2,54,00,000
ADD: Work in Progress(Beginning) 15,00,000
2,69,00,000
LESS: Work in Progress(closing) 18,00,000
WORKSCOST or FACTORY 2,51,00,000
COST
 ADD: Administrative Overheads 4,00,000
COST OF PRODUCTIONOF 2,55,00,000
GOODS SOLD
ADD: Opening stock of finished 49,00,000
goods
3,04,00,000
LESS: Closing stock of finished 55,00,000
goods
COST OF GOODS SOLD 2,49,00,000

ADD: Selling & Distribution 16,00,000

Overhead
COST OF SALES or TOTAL 2,65,00,000
COST
NET PROFIT 15% 39,75,000
SALES 3,04,75,000

Interpretation

The company sold the products for Rs 3,04,75,000/- . The cost price of the raw
material is rs.1,75,00,000/- and all overheads including direct wages, expenses and
other over heads costing (percentage of overheads is 18% and they have added the
profit margin @15% ).

4.ANALYSIS PART IS CALCULATED:

I tried my best to get this data , cost details cant be disclosed in detail being a
confidential data

Cost Sheet of kan Enterprise for the period ended (2015-16)

Particulars Rs. Rs.
Direct materials consumed
Opening stock of raw materials 1,00,00,000
ADD: Purchase of raw materials 1,50,00,000
Carriage on purchases 30,00,000
2,80,00,000
LESS: Closing stock of raw materials 35,00,000 2,45,00,000,
Direct Wages 15,00,000
Direct expenses 5,00,000
PRIME COST 2,65,00,000
ADD: Factory Overheads 57,00,000
3,22,00,000
LESS: Sale of Scrap 2,00,000
3,20,00,000
ADD: Work in Progress(Beginning) 17,00,000
3,37,00,000
LESS: Work in Progress(closing) 15,00,000
WORKSCOST or FACTORY 3,22,00,000
COST
ADD: Administrative Overheads 5,00,000
COST OF PRODUCTIONOF 3,27,00,000
GOODS SOLD
ADD: Opening stock of finished 50,00,000
goods
3,77,00,000
LESS: Closing stock of finished 50,00,000
goods
COST OF GOODS SOLD 3,27,00,000

ADD: Selling & Distribution 15,00,000

Overhead
COST OF SALES or TOTAL 3,42,00,000
COST
NET PROFIT 20% 68,40,000
SALES 41,040,000

InterpretationThe company sold the products for Rs.41,040,000/- . The cost

price of the raw material is rs.2,45,00,000/- and all overheads including direct
wages, expenses and other over heads costing (percentage of overheads is 18% and
they have added the profit margin @20% ).
5.ANALYSIS PART IS CALCULATED:

I tried my best to get this data , cost details cant be disclosed in detail being a
confidential data

Cost Sheet of kan Enterprise for the period ended (2014-15)

Particulars Rs. Rs.

Direct materials consumed
Opening stock of raw materials 80,00,000
ADD: Purchase of raw materials 1,20,00,000
Carriage on purchases 40,00,000
1,80,00,000
LESS: Closing stock of raw materials 25,00,000 1,55,00,000,
Direct Wages 18,00,000
Direct expenses 9,00,000
PRIME COST 1,82,00,000
ADD: Factory Overheads 58,00,000
2,40,00,000
LESS: Sale of Scrap 5,00,000
2,35,00,000
ADD: Work in Progress(Beginning) 18,00,000
2,53,00,000
LESS: Work in Progress(closing) 20,00,000
WORKSCOST or FACTORY 2,33,00,000
COST
ADD: Administrative Overheads 5,00,000
COST OF PRODUCTIONOF 2,38,00,000
GOODS SOLD
ADD: Opening stock of finished 50,00,000
goods
2,88,00,000
LESS: Closing stock of finished 55,00,000
goods
COST OF GOODS SOLD 2,33,00,000

ADD: Selling & Distribution 18,00,000

Overhead
COST OF SALES or TOTAL 2,51,00,000
COST
NET PROFIT 22% 5,522,000
SALES 30,622,000
Interpretation

The company sold the products for Rs.30,622,00/- . The cost price of the raw
material is rs 1,55,00,000 /- and all overheads including direct wages, expenses
and other over heads costing(percentage of overheads is 18% and they have added
the profit margin @22% ).

4.4.3 Turnover
1.Stock turnover ratio
This next tells the analysis how well a company manages inventory once again,this measure
takes information from both the income statement and alance sheet typically, high values of
inventory turnover are a positive sign
(stock turn over ratio= cost of goods sold/ Average stock)
year Cost of goods Average stock Stock turnover
sold ratio
2019-2018 32,600,000 6,81,000 3.32
2018-2017 43,80,0000 9,400,000 5.70
2017-2016 24,900,000 5,500,000 2.94
2016-2015 32,700,000 7,152,000 3.60
2015-2014 23,300,000 4,954,000 2.48
 6

4 2019-2018
2018-2017
3 2017-2016
2016-2015
2 2015-2014

Interpretation:
It is observed from the chart that the turn over ratio lies 1 time throughout the four
years period of study. Hence kan enterprise has good inventory turnover ratio
Total leverage of kan enterprise

2.5

1.5

Ratio
1

0.5

0
2019 2018 2017 2016 2015

Analysis
Combined or total leverage measures total of the kan enterprises. In the year it has
minimum risk than last year which ratio was 2.43 in this diagram is measured by
percentage change in earning per share(EPS) due to percentage change in sales
They ask their existing share holders to issuing common stock rights allow existing
share holders to purchase additional shares at below market prices, in order to raise
equity. While this practice does improve a companys financial strength it also
dilutes the current share holders percentage of ownership.

Degree financial leverage of kan enterprises

 2
1.8
1.6
1.4
1.2
1
Ratio
0.8
0.6
0.4
0.2
0
2019 2018 2017 2016 2015

Analysis:
In 2019 degree of financial leverage of kan enterprises ratio is 1.61 and it has constantly
higher than previous years

By borrowing funds the iocl incurs a debt that must be paid but this debt is paid in small
installments over a relatively long period of time. This frees funds for more immediate use.kan
enterprises that successfully uses leverage demonstrates by its success that it can handle the risks
associated financing with carrying debt.this can become an important factor when additional
financing is needed . not only will loans more likely be available, but they will be available at
more attractive intrest rates. Like individuals, companies with solid financials.