Annexure-V- Cover Page for Academic Tasks

Course Code: FINM542 Course Title: CORPORATE FINANCE -1

Course Instructor: MONIKA KALANI

Academic Task No.: 2 Academic Task Title: Assignment

Date of Allotment: OCT Date of submission: 17th Oct 2021

Student’s Roll no: B54 Student’s Reg. no: 12101950

Evaluation Parameters:

Learning Outcomes:

Declaration:

I declare that this Assignment is my individual work. I have not copied it from any other student
work or from any other source except where due acknowledgement is made explicitly in the text,
nor has any part been written for me by any other person.

Student’s Signature: N. ANKIREDDY

Evaluator’scomments (For Instructor’s use only)

General Observations Suggestions for Improvement Best part of assignment

Evaluator‟s Signature and Date:

Marks Obtained: Max. Marks: …………………

INTRODUCTION

Finolex Cables Limited (later called 'Finolex' or 'Company') started as a power shop with two
brothers PP Chin the past habria and KP Chabbria in July 1945 and soon became a powerhouse
after receiving a large size order from the Department of Defense. mid-1950s for rail and truck
ropes.

Starting in a small industrial unit in 1956, they first produced PVC wires in the automotive
industry. The Finolex product is born from "Fine" & "Flexibles" and "O" with an electric arc on
it - indicating the cable business the company was in. The company saw its share of hard times
but with its persistent efforts and never gave up, the company in 1972 became a limited
company.

In July 1983, Finolex embarked on a continuous process of expanding and modernization,

making it one of the most diverse and largest cable manufacturers in the world.

In 1981, Finolex Industries Limited (FIL) was established. The company was set up primarily to
make Rigid PVC and Fittings pipes in Pune, which were widely used in the agricultural sector.

In the early nineties saw the Finolex group expand into new business platforms to produce Optic
Fiber and Copper Rods cables.

PROFITING OF COMPANY

Net profit of the finolex cables limited in the past years compared when I compare the 2018-
2019 is during the financial year 2018 the net profit of the firm is 2815 when compared with the
financial year 2019 is 3077 it has been increased rapidly.

The other financial year when we compare with 2019 and 2020 . the net profit of the firm has
been decreased from 3077 to 2877. There was a net loss of 200 crores in the financial year of
2019-2020.

When we look at the financial year of 2020-2021 . the profit of the company has been gradually
decreasing from the pastg two financial years from 2877 to 2768. So the company went in to the
rapid losses in each financial year.

EPS ( EARNING PER SHARE )

Earning per share for the financial year 2018 to 2019 Has been increased with the percentaile
of 5. This benefits the firm in the year of 2019 after a rapid inflation EPS has been decreased by
1 percent in the financial year of 2019 and 2020.

With a total number out standing shares has been increased and earnings of the company
increases with the increasing of a sales in the case of 2021 financial year.
ANALYSIS OF SHORT -TERM SOURCES OF FINANCE: -

After an analysis of balance sheet of finolex industries for the financial year 2021,2020,2019 is
follows

A decline in the demand for and supply of products and services. When there is an explosion in
the market, the demand for the product grows. In such a case, the business needs to raise
temporary income to increase product supply. Therefore, an entity needs short-term funding to
address the temporary increase in product demand.

When I compared the financial year 2018-2019 in terms of current liabilities of short-term
borrowing is 100.71 to 90.56 which has been decrease rapidly. at part from this in same year
short term provisions has been increase from 1.43 to 2.40.

Another financial year 2019-2020 in terms of current liabilities that is short-term borrowing
loans as been increased by 90.56 to 282.67. here short provision has been increased with 2.40 to
3.01 on the 2019 financial year

The financial year 2020-2021 in terms of current liabilities that is short-term borrowing loans as
been decrease with the 282.67 to 203.65 percentage. Due which short-term provisions grow
rapidly from 3.01 to 3.83

I compare the financial year 2021, 2020, 2019 of current assets with Short Term Loans and
Advances of this 3 years it has been increasing in each financial year with 0.81, 0.90, 0.31, 0.21

BALANCE SHEET OF FINOLEX MAR 21 MAR 20 MAR 19 MAR 18

INDUSTRIES (in Rs. Cr.)

12 mths 12 mths 12 mths 12 mths

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS

Equity Share Capital 124.10 124.10 124.10 124.10

TOTAL SHARE CAPITAL 124.10 124.10 124.10 124.10

Reserves and Surplus 2,948.78 1,805.71 2,404.33 2,640.47

TOTAL RESERVES AND 2,948.78 1,805.71 2,404.33 2,640.47

SURPLUS
TOTAL SHAREHOLDERS 3,072.88 1,929.81 2,528.42 2,764.57
FUNDS

NON-CURRENT LIABILITIES

Long Term Borrowings 0.00 0.00 0.00 0.00

Deferred Tax Liabilities [Net] 118.51 115.82 151.33 120.68

Other Long Term Liabilities 65.88 51.58 58.02 64.77

Long Term Provisions 13.43 26.72 20.58 13.43

TOTAL NON-CURRENT 197.82 194.12 229.93 198.89

LIABILITIES

CURRENT LIABILITIES

Short Term Borrowings 203.85 282.67 90.56 100.71

Trade Payables 395.21 233.40 283.80 250.47

Other Current Liabilities 333.27 172.30 138.69 138.46

Short Term Provisions 3.83 3.01 2.40 1.43

TOTAL CURRENT LIABILITIES 936.16 691.38 515.45 491.07

TOTAL CAPITAL AND 4,206.86 2,815.31 3,273.80 3,454.52

LIABILITIES

ASSETS

NON-CURRENT ASSETS

Tangible Assets 1,001.29 1,015.29 948.93 881.67

Intangible Assets 1.06 1.60 1.96 2.57

Capital Work-In-Progress 8.15 7.28 90.25 90.34

Other Assets 0.00 0.00 0.00 0.00

FIXED ASSETS 1,010.50 1,024.17 1,041.14 974.58

Non-Current Investments 1,085.26 455.53 1,076.94 1,489.65

Deferred Tax Assets [Net] 0.00 0.00 0.00 0.00

Long Term Loans And Advances 3.21 2.68 0.01 0.05

Other Non-Current Assets 120.04 108.63 102.26 180.95

TOTAL NON-CURRENT 2,219.01 1,591.01 2,220.35 2,645.23

ASSETS

CURRENT ASSETS

Current Investments 506.94 129.13 226.09 65.59

Inventories 918.82 857.81 620.47 611.55

Trade Receivables 147.98 73.17 74.31 43.14

Cash And Cash Equivalents 336.26 93.21 29.10 23.43

Short Term Loans And Advances 0.81 0.90 0.31 0.21

Other Current Assets 77.04 70.08 103.17 65.37

TOTAL CURRENT ASSETS 1,987.85 1,224.30 1,053.45 809.30

TOTAL ASSETS 4,206.86 2,815.31 3,273.80 3,454.52

OTHER ADDITIONAL
INFORMATION

CONTINGENT LIABILITIES,
COMMITMENTS

Contingent Liabilities 124.91 114.01 102.93 242.41

CIF VALUE OF IMPORTS

Raw Materials 0.00 0.00 0.00 0.00

Stores, Spares And Loose Tools 0.00 0.00 0.00 0.00

Trade/Other Goods 0.00 0.00 0.00 0.00

Capital Goods 0.00 0.00 0.00 0.00

EXPENDITURE IN FOREIGN
EXCHANGE

Expenditure In Foreign Currency 1,411.90 1,220.32 1,230.10 1,231.20

REMITTANCES IN FOREIGN
CURRENCIES FOR DIVIDENDS

Dividend Remittance In Foreign -- -- -- --

Currency

EARNINGS IN FOREIGN
EXCHANGE

FOB Value Of Goods -- -- -- --

Other Earnings -- -- -- --

BONUS DETAILS

Bonus Equity Share Capital 5.54 5.54 5.54 5.54

NON-CURRENT INVESTMENTS

Non-Current Investments Quoted 1,065.33 439.43 1,060.81 1,473.47

Market Value

Non-Current Investments 19.93 16.10 5.37 5.37

Unquoted Book Value

CURRENT INVESTMENTS

Current Investments Quoted 294.94 49.53 226.09 65.59

Market Value

Current Investments Unquoted 212.00 79.60 -- --

Book
ANALYSIS OF LONG-TERM SOURCE OF FINANCE: -

The financial period reflects the risk-sharing agreement between providers and financial users.
Long-term financial changes pose a risk to providers because they have to bear the volatility of
potentially automatic and other changing conditions in the financial markets, such as inter

est rate risk. Providers usually require a fee as part of the higher risk compensation for this type
of financial claim. On the other hand, short-term investments put users at risk as they force them
to transfer money on a regular basis

Comparing the financial years of long-term borrowings under non-current labilities is zero this
company didn’t take the long- term borrowings

We look at net deferred tax liabilities ratio every financial year it is decreasing from 2018 to
2021. If I look in the financial year of 2018- 2019 the ratio grows up from 120.68 to 151.33. in
the financial year 2019- 2020 the ratio falls downwards from 151.33 to 115.82. In the financial
year 2020-2021 the ratios slight increase from 115.82 to 118.51.

Other long-term liabilities for the financial year as decreasing in the year of 2018-2019 from
64.77 to 58.02 in the financial year 2019-2020 it has 58.02 to 51.58. stipple increasing in the
financial year 2020-2021 raise of 51.58 to 65.88

When I analysis long term provisions in the gradually increasing and decreasing in each financial
year from 13.43 to 20.58 in the year of 2018-2019 and compared with 2019-2020 increased with
26.72 and downfall back to the 2018 ratio with 13.43.

Fixed assets of long-term loans and advances has been increased every financial year from 0.005
to 3.21 with the year of 2018 to 2021.
COMPARISON WITH PEER

Finolex Astral poly Supreme industries Prince Ashirvad

Products UPVC, CPVC UPVC, UPVC, CPVC, UPVC, UPVC,

PIPES AND CPVC HDPE, PPR PIPES CPVC, CPVC
FITTINGS PIPES AND FITTINGS PPR PIPES
AND PIPES AND
FITTINGS AND FITTING
FITTING S
S

Distribut 800 750 916 766 1110

ion

Touch 18000 26000 26000 - 36000

points

Plants Maharashtra, Gandhinagar Maharashtra, Uttar Maharashtra Karnataka

pune and and Pradesh, Madhaya
Tamilnadu
Gujarat Ahmedabad Pradesh, Rajasthan,
(Gujarat) and West Bengal, Gujarat, Uttarakhand
tamil nadu Assam, Tamilnadu

Capacity PVC pipes 1,37,708 MT - 2,10,646 1,08,000MT

3,30,000 MT MT
PVC Resin
2,72,000MT

Market 9% 6% 11% 5% 7%
share

Promote 52.47% 58.49% 49.70% - -

r holding

Revenue 3,462.82 2,486 6,356.99 2,071.52 3029

(Rs.Cr.)