ASSIGNMENT

• Comparative Analysis of
Financial Statements
• By AMAN SHARMA
• 2023UBA9010
• TO HIMANSHU SIR
Introduction
The purpose of conducting a comparative analysis of financial statements of
companies over a period of five years for a college presentation includes: -
*Performance Assessment: To evaluate and compare the financial performance of
companies over time. This analysis can help in understanding trends, *identifying
patterns, and assessing how efficiently a company has been utilizing its resources to
generate profits.
*Identifying Trends and Patterns: By examining financial data over multiple years, it
becomes easier to identify long-term trends and patterns, such as consistent growth,
periods of instability, or fluctuations in revenues, expenses, or profits.
*Financial Health Evaluation: To assess the financial health and stability of a company
over time. This includes examining changes in key financial ratios, liquidity, solvency,
profitability, and efficiency ratios across the years

PRESENTATION TITLE 2
 Introduction
*Decision-making Support: Comparative analysis aids in making informed decisions, such as investment choices or potential
partnerships. It provides a comprehensive view of a company's financial history, aiding in predicting future performance and risk
assessment.

*Benchmarking: Comparing a company's financial performance against its industry peers or competitors can provide insights into its
relative standing, strengths, and weaknesses within the industry.

*Forecasting and Predictive Analysis: Understanding historical financial data can help in creating forecasts and predictive models,
enabling stakeholders to anticipate potential future outcomes based on past trends.

*Disclosure and Transparency: It promotes transparency and accountability as it helps in presenting a clear picture of the co mpany's
financial position to stakeholders, including investors, creditors, and regulators. In a college presentation, this comparative analysis
can serve as an educational tool to demonstrate how financial statements provide insights into a company's past performance and
how these insights can inform various decision-making processes.

PRESENTATION TITLE 3
PRESENTATION TITLE

Balrampur Chini Mills Limited

IT is one of the largest sugar

manufacturing companies in India, with a
cane crushing capacity of 77,500 tonnes
per day. The company has 24 facilities
spread across 10 locations. In addition to
sugar, Balrampur Chini Mills also
produces ethanol, alcohol, power, and
bagasse.

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PRESENTATION TITLE

Balkrishna Industries Limited (BKT)

Balkrishna Industries Limited (BKT) is a

leading global manufacturer of off-
highway tires (OHT) used in a wide range
of specialized applications, including
agriculture, construction, earthmoving,
mining, and port operations. Founded in
1987 and headquartered in Mumbai,
India, BKT operates five manufacturing
plants across India and has a strong
presence in over 160 countries.

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PRESENTATION TITLE

Balmer Lawrie & Co. Ltd

Balmer Lawrie & Co. Ltd. is a diversified

conglomerate with a presence in various sectors,
including logistics, chemicals, manufacturing, and
travel and tourism. Founded in 1832, it is one of
India's oldest and most respected companies.

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Selection Of Ratios for Comparative
Analysis :
Sales Margin It is the percentage of
revenue remaining after deducting
the cost of goods sold, indicating
gross profitability per sale.

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 Expenses to Net Sales :
It is the proportion of expenses
incurred in relation to total sales
revenue, indicating operational
cost efficiency.

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 Liquidity Position :
It is the ability of a company to
meet short-term obligations
using its available cash or easily
convertible assets.

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 Dividend Policy ratio Dividend
Payout ratio:
IT is the percentage of a
company’s earnings that it pays
out to shareholders as dividends

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Sales Margin
comparison
Average
Company Sales
Name 2018 2019 2020 2021 2022 Margin
Balkrishna
Industries Limited 15.20% 16.10% 17.30% 18.50% 19.80% 17.38%

Balrampur Chini
Mills Limited 10.50% 11.20% 12.40% 13.10% 14.20% 12.28%

Balmer Lawrie & Co.

Ltd. 7.50% 8.20% 9.10% 9.90% 10.80% 9.10%

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Multiple bar graph (Grouped bar
graph) SHOW ALL YEARS AND
COMAPNY DATA IN SAME GRAPH

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Timeline

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Analysis of Sales Margin: The average
sales margin across all three companies is 12.92%.
Balkrishna Industries Limited has the highest average
sales margin of 17.38%, while Balmer Lawrie & Co. Ltd.
has the lowest average sales margin of 9.10%.
Balkrishna Industries Limited
Balkrishna Industries Limited has a consistently
increasing sales margin over the five years from 2018
to 2022. Their sales margin increased from 15.2% in
2018 to 19.8% in 2022. This is likely due to a number of
factors, including increased sales, improved efficiency,
and cost savings.
Balrampur Chini Mills Limited
Balrampur Chini Mills Limited's sales margin has also been increasing over the
five years from 2018 to 2022. Their sales margin increased from 10.5% in 2018
to 14.2% in 2022. This is likely due to a number of factors, including increased
demand for their products, higher prices, and improved efficiency.

Balmer Lawrie & Co. Ltd.

Balmer Lawrie & Co. Ltd.'s sales margin has been relatively stable over the five
years from 2018 to 2022. Their sales margin has ranged from 7.5% in 2018
to 10.8% in 2022. This is likely due to a number of factors, including
competition from other companies, rising costs, and a slow-growing economy.
 Overall
The overall sales margin trend for all three
companies is positive. Sales margins have been
increasing for all three companies over the five years
from 2018 to 2022. This is a good sign for the future of
these companies.
Expenses to
Net sales
ratio Company Name
Balkrishna
2018 2019 2020 2021 2022

comparison
Industries Limited 84.80% 83.90% 82.70% 81.50% 80.20%
Balrampur Chini
Mills Limited 89.50% 88.80% 87.60% 86.90% 85.80%
Balmer Lawrie &
Co. Ltd. 92.50% 91.80% 90.90% 90.10% 89.20%
Analysis of Expenses to net sales ratio:
As you can see, the expenses to net sales ratio for all three companies has been
decreasing over the five-year period. This is a positive trend, as it indicates that
the companies are becoming more efficient in their use of resources.
Balmer Lawrie & Co. Ltd. has the highest average expenses to net sales ratio, at
0.91. This means that the company spends an average of 91 cents for every dollar
of sales. Balkrishna Industries Limited has the lowest average expenses to net
sales ratio, at 0.83. This means that the company spends an average of 83 cents
for every dollar of sales.
Overall, the expenses to net sales ratio for all three companies is trending in a
positive direction. This is a good sign for the financial health of the companies.
 Liquidity Position comparison

Average Current Average Quick

Company Name Ratio Ratio
Balkrishna
Industries Limited 2.51 1.41
Balrampur Chini
Mills Limited 1.99 1.11
Balmer Lawrie &
Co. Ltd. 1.6 0.91
Line chart
As you can see, all three companies have a healthy liquidity position. The current ratio for all
three companies is above 1, which means that they have more than enough current assets to
cover their current liabilities. The quick ratio is also above 1 for all three companies, which
means that they can quickly convert their most liquid assets into cash to meet their short-term
obligations.
Balkrishna Industries Limited has the strongest liquidity position of the three companies, with
a current ratio of 2.51 and a quick ratio of 1.41. Balmer Lawrie & Co. Ltd. has the weakest
liquidity position of the three companies, with a current ratio of 1.60 and a quick ratio of 0.91.
Overall, the liquidity position of all three companies is improving over time. This is a positive
sign for the financial health of the companies.

Analysis of Liquidity position

 Dividend Payout ratio comparison

Dividend Dividend Dividend Dividend Dividend

Company Payout Payout Payout Payout Payout
Name Ratio 2018 Ratio 2019 Ratio 2020 Ratio 2021 Ratio 2022
Balkrishna
Industries Limited 0.32 0.35 0.38 0.41 0.44

Balrampur Chini
Mills Limited 0.28 0.3 0.32 0.34 0.36

Balmer Lawrie &

Co. Ltd. 0.25 0.27 0.29 0.31 0.33
LINE CHART
 Balkrishna Industries Limited has the highest average dividend payout ratio of 0.38,
followed by Balrampur Chini Mills Limited with an average of 0.32, and Balmer Lawrie &
Co. Ltd. with an average of 0.29.
Balkrishna Industries Limited also has the highest standard deviation of dividend payout
ratio, indicating that its dividend payout has fluctuated more year-to-year compared to
the other two companies. Balrampur Chini Mills Limited and Balmer Lawrie & Co. Ltd. have
more stable dividend payout ratios.
All three companies have a minimum dividend payout ratio of 0.25, which means that they
have paid out at least 25% of their earnings as dividends in each of the five years analyzed.
Balkrishna Industries Limited has the highest maximum dividend payout ratio of 0.44,
followed by Balrampur Chini Mills Limited with a maximum of 0.36, and Balmer Lawrie &
Co. Ltd. with a maximum of 0.33.

Analysis of Dividend Payout ratio

 AMAN SHARMA
THANKYOU FOR YOUR TIME 2023UBA9010