Assignment No.

:2
1. Please state the summarized income statement equation for the last two years from the latest given company
annual report with all figures in Rs. Crores (or billions). Please comment within 100 words.
For APL Apollo Tubes Ltd, the income statement for the last two years is as shown below:

Income Statement (in Rs. Crore)

Year ended on Year ended on
Particulars Change % age Change
31-03-2020 31-03-2019
Income 7745.41 7164.03 581.38 8.1%
Expenses 7449.07 6937.09 511.98 7.4%
PBT 296.34 226.94 69.40 30.6%
Tax Expense 40.34 78.69 -38.35 -48.7%
PAT 256 148.25 107.75 72.7%
There has been an increase of 8.1% in revenue, and Expenses have increased by 7.4%.
PBT has increased by ~31%. Tax expenses have decreased by 48.7% due to a tax credit of Rs. 25 crores.
However, the PAT has zoomed by only 72.7% percent to Rs. 256 crores.

2. Mention five biggest items as part of the "sales/revenue/income" and "expenses/dividends/deductions" (along
with their proportions) as mentioned in the annual report (to the extent available) for the last two years, if
needed, you may like referring to the notes/ schedules as well. Please give your comments within 100 words.

Year ended Year ended

Particulars (All figures in Rs. Crore) %age %age of Chang %age
on 31-03- on 31-03-
of total total e Change
2020 2019
Revenue from Operation 7723.23 99.7% 7152.32 99.8% 570.91 8.0%
Revenue Other Income 22.18 0.3% 11.71 0.2% 10.47 89.4%
Total Revenue 7745.41   7164.03   581.38 8.1%
Cost Of Materials Consumed 6597.65 88.6% 6288.78 90.7% 308.87 4.9%
Purchase Of Stock-In Trade 116.57 1.6% 107.2 1.5% 9.37 8.7%
Changes In Inventories Of
-135.67 1.8% -88.3 1.3% -47.37 53.6%
FG,WIP And Stock-In Trade
Expense Employee Benefit Expenses 142.19 1.9% 107.94 1.6% 34.25 31.7%
s Finance Costs 107.27 1.4% 113.35 1.6% -6.08 -5.4%
Depreciation And
95.91 1.3% 64.26 0.9% 31.65 49.3%
Amortization Expenses
Other Expenses 525.15 7.0% 343.86 5.0% 181.29 52.7%
Total Expenses 7449.07   6937.09   511.98 7.4%
For both years, ~99% of the total revenue is generated from the company's operations.
In expenses, Being the manufacturer of tubes and pipes, the significant expense is towards the cost of materials, i.e., 88.6%
and 90.7% for the year ending on 31-03-2020 and 31-03-2020 respectively.
Depreciation and Amortization expenses have increased by ~49% owing to higher plant and machinery depreciation of
self and acquired companies.
Other Expenses have been 7% of the overall costs incurred in the year ending on 31-03-2020. It has increased by 52.7%
with respect to last year because of Freight outward, power, and fuel expenditures.

3. Referring to the format given to you, mention one item that is missing and mention one item that you have found
interesting in the income statement. Elaborate within 100 words.
Missing things:
R&D Expenses: Despite establishing new facilities with updated technologies, R&D expenses have not been explicitly
captured.
Interesting Things:
Other Income: For the year ended on 31-03-2020, other sources' income has increased by ~89%, majorly due to gains
from foreign currency transactions and miscellaneous income.