Financial Statement AnalysisFinancial Statement Analysis : Motherson Sumi

Section A Group 11

FT163102 Vibhor DudejaFT164002 Aanchal SharmaFT164005 Abhishek MaheshwariFT164006 Abhishek MishraFT164007 Abhishek ThyagarajanFT164008 Aditya Gupta

Consolidated Balance Sheet ------------------- in Rs. Cr. -------------------

Mar '15 Mar '14 Mar '13

EQUITY AND LIABILITIES

Shareholders’ Equity

Share Capital 88.20 88.20 58.80

Reserves and Surplus 3235.60 2871.10 2230.20

Net Worth 3323.80 2959.30 2289.00

Minority Interest 1014.20 789.60 402.50

Liabilities

Non-current liabilities

Long-term borrowings 4085.90 2983.40 2715.90

Deferred tax liabilities (net) 145.70 168.00 144.10

Other Long-term liabilities 309.10 208.30 238.80

Long-term provisions 218.00 204.30 167.90

Total Non-current liabilities 4758.70 3564.00 3266.70

Current Liabilities

Short Term Borrowings 824.50 1011.10 1355.30

Trade payables 4864.10 4091.70 3180.80

Other current liabilities 2228.70 2476.70 1975.60

Short-term provisions 556.80 469.90 357.60

Total Current Liabilities 8474.10 8049.40 6869.30

Total Liabilities 13232.80 11613.40 10136.00

Total Equity and Liabilities 17570.80 15362.30 12827.50

ASSETSNon-current assets

Fixed assetsTangible Assets 5775.50 5648.50 5056.30 Intangible Assets 353.40 270.40 220.70 Capital Work in Progress 955.40 646.70 385.50 Intangible Assets under development 0.40 0.40 0.40

Non-current investments (net) 64.90 74.90 71.60 Deferred tax assets (net) 190.90 118.40 88.20 Long-term loans and advances (net) 569.20 356.60 150.70 Other non current assets 242.50 190.90 135.40

Total Non-current assets 8152.20 7306.80 6108.80

Current AssetsCurrent investments 0.00 0.00 0.00 Inventories 3750.00 3282.20 2603.60 Trade receivables (net) 3014.40 3238.40 2940.00 Cash and bank balances 1891.90 906.10 594.40 Short- term loans and advances 743.80 616.20 570.80 Other current assets 18.50 12.60 9.90

Total Current Assets 9418.60 8055.50 6718.70

Total Assets 17570.80 15362.30 12827.50

in Rs Crores

Consolidated P&L Statement Mar '15 Mar '14 Mar '13

Revenue

Income from Operations 34585.20 30427.90 25312.40

Other Income 464.30 310.60 321.50

Total Revenue 35049.50 30738.50 25633.90

Expenses

Cost of Materials Consumed 22185.50 19555.70 16686.00

Purchase of Stock in Trade 218.90 109.30 100.80

-772.90 -303.60 -303.00

Employee benefits expense 6365.20 5106.40 4282.70

Other expenses 3832.50 3563.00 3069.20

EBITDA 3220.30 2707.70 1798.20

Depreciation and Amortisation expense 920.60 817.20 714.50

EBIT 2299.70 1890.50 1083.70

Interest Expense 317.80 294.30 249.50

1981.90 1596.20 834.20

Exceptional Items 164.80 0.00 0.00

Profit/ (Loss) before tax (PBT) 1817.10 1596.20 834.20

Tax expense 525.60 499.40 383.50

Net Profit/ (Loss) (PAT) 1291.50 1096.80 450.70

Share of Profit from Associate 0.40 -0.20 0.80

Minority Interest 429.40 331.60 7.00

862.50 765.00 444.50

9.78 8.67 5.00

Change in inventories of finished goods, work in progress and stock in trade.

Profit/ (Loss) before tax from oridnary activties after finance cost but before exceptional items

Net Profit/ (Loss) with minority interest and associates (PAT)

Earnings/(loss) per share basic and diluted (Face value of Rs. 10 each)

in Rs Crores

Consolidated Cash Flow Statement Mar '15 Mar '14

Cash Flow from Operating Activities

Net Profit before tax 1817.50 1596.00

Adjustments for:

Share of (profit) / Loss in Associate -0.40 0.20

Depreciation and Amortization 920.60 817.20

Interest Expenditure 316.90 292.90

Interest Income -24.20 -16.50

Dividend Income -0.50 -0.30

(Profit) / Loss on sale of Intangible Assets (net) -2.40 -3.70

(Profit) / Loss on sale of Long Term Investments 0.00 0.00

Change in carrying amount of current Investment 0.00 -0.10

Debts / Advances written off 3.70 6.60

Provision for Bad & Doubtful Debts / Advances 17.30 11.10

Liability no longer required written back -15.80 -39.60

Provision for Employee Benefits 12.30 15.20

Provision for Warranty 1.30 33.30

Unrealised foreign currency loss / (gain) -304.90 302.10

Operating Profit before working Capital Changes 2741.40 3014.40

Change in working capital:

(Increase) / Decrease in trade and other payables 1006.70 1407.80

(Increase) / Decrease in trade receivables 450.00 -354.90

(Increase) / Decrease in inventories -169.90 -678.60

(Increase) / Decrease in other receivables -21.80 -134.00

Cash generated from Operations 4006.40 3254.70

-Taxes (Paid) / Received (Net of TDS) -616.70 -559.70

Net Cash generated from Operating Activities 3389.70 2695.00

Cash Flow from Investing Activities:

Purchase / additions of tangible / intangible assets -1944.30 -1412.00

Sale of tangible / intangible assets 105.30 60.30

Sale / (purchase) of investments 0.40 -0.60

Purchase of minority interest in subsidiary -332.80 0.00

Loan to related parties (net) 8.00 -36.00

Interest received (revenue) 21.00 15.70

Dividend received 0.50 0.30

Consideration paid on acquisition of subsidiaries -711.00 0.00

Net Cash used in Investing Activities -2852.90 -1372.30

Cash Flow from Financing Activities:

Proceeds from Minority Shareholders 0.00 0.00 Dividend Paid -220.30 -119.50

Dividend Distribution Tax -37.50 -20.00

Dividend Paid to Minority Shareholders -96.10 -54.00

Interest Paid -299.30 -288.10

Proceeds from Long Term Borrowings 5023.60 956.50

Proceeds from Short Term Borrowings 2205.80 540.20

Repayment of Long Term Borrowings -2493.40 -1117.60

Repayement of Short Term Borrowings -3598.00 -979.20

Proceeds from Government Subsidy 9.70 1.60

Net Cash used in Financing Activities 494.50 -1080.10

Net Increase / (Decrease) in Cash and Cash Equivalents 1031.30 242.60

Net Cash and Cash Equivalents at the beginning of the year 830.50 584.50

8.50 0.00

Cash and Cash Equivalents at current year closing 1870.30 827.10

Cash and Cash Equivalents Comprise

Cash on Hand 2.10 2.30

Cheques / Drafts on Hand 0.70 2.10

Balance with Banks 1867.00 826.10

Cash and Cash equivalents as per balance sheet (restated) 1869.80 830.50

0.50 -3.40

Total 1870.30 827.10

Cash and Cash Equivalents acquired consequent to acquisition of Wiring Harness Division of Stoneridge and S & T.

Effect of exchange differences on balance with banks in foreign currency

in Rs Crores

Mar '13

835.00

-0.80

714.50

249.50

-12.10

-0.20

-9.30

0.00

-0.10

9.00

11.50

-28.60

19.00

-0.90

167.60

1954.10

128.30

56.10

-354.00

67.70

1852.20

-366.20

1486.00

-1138.90

49.40

-1.30

0.00

0.00

11.60

0.20

0.00

-1079.00

26.00 -86.80

-14.40

-112.00

-253.70

446.30

809.80

-508.70

-563.90

1.60

-255.80

151.20

442.90

0.00

594.10

3.00

3.00

578.50

584.50

9.60

594.10

Du Pont Analysis

Mar '15 Mar '14 Mar '13

Tax Burden 0.71 0.69 0.54Interest Burden 0.86 0.84 0.77Operating Profit Margin 6.6% 6.2% 4.3%Asset Turnover 1.97 1.98 1.97Financial Leverage 4.05 4.10 4.77

Return on Equity (RoE) ### ### ###

Liquidity Ratios

Mar '15 Mar '14 Mar '13

Current Ratio 1.11 1.00 0.98Quick Ratio 0.58 0.51 0.51Cash Ratio 0.22 0.11 0.09Cash Flow from Operations Ratio 0.40 0.33 0.22

Solvency Ratios

Mar '15 Mar '14 Mar '13

Debt to Total Capital 0.79 0.78 0.81Debt to Equity 3.70 3.64 4.14Interest Coverage Ratio 7.24 6.42 4.34CFO to Debt 0.28 0.25 0.16

Profitablity:

Return on Equity (RoE)

EBITDA Margin Here we see that the operating profit margin has increased from 4.3% to 6.6% . This is a good sign as it shows consistency and efficiency in the management’s operational capabilities and has grown.

Profitablity:

Return on Equity (RoE)

EBITDA Margin Here we see that the operating profit margin has increased from 4.3% to 6.6% . This is a good sign as it shows consistency and efficiency in the management’s operational capabilities and has grown.

Motherson Sumi Systems Wabco IndiaDu Pont Analysis Du Pont Analysis

Mar '15 Mar '14 Mar '13 Mar '15 Mar '14

Tax Burden 0.71 0.69 0.54 Tax Burde 0.68 0.73Interest Burden 0.86 0.84 0.77 Interest Bu 1.00 1.00Operating Profit Margin 0.07 0.06 0.04 Operating P 0.13 0.15Asset Turnover 1.97 1.98 1.97 Asset Turn 1.21 1.16Financial Leverage 4.05 4.10 4.77 Financial 1.29 1.27

Return on Equity (RoE) 32.47% 29.26% 16.75% Return on 13.98% 15.56%

Liquidity Ratios Liquidity Ratios

Mar '15 Mar '14 Mar '13 Mar '15 Mar '14

Current Ratio 1.11 1.00 0.98 Current Rat 3.46 3.63Quick Ratio 0.58 0.51 0.51 Quick Rati 2.59 2.57Cash Ratio 0.22 0.11 0.09 Cash Ratio 1.20 1.20Cash Flow from Operations 0.40 0.33 0.22 Cash Flow 0.57 0.85

Solvency Ratios Solvency Ratios

Mar '15 Mar '14 Mar '13 Mar '15 Mar '14

Debt to Total Capital 0.79 0.78 0.81 Debt to Tot 0.19 0.17Debt to Equity 3.70 3.64 4.14 Debt to Equ 0.23 0.21Interest Coverage Ratio 7.24 6.42 4.34 Interest Co 490.41 1114.88CFO to Debt 0.28 0.25 0.16 CFO to Deb 0.62 0.92

Wabco India Amara Raja BatteriesDu Pont Analysis

Mar '13 Mar '15 Mar '14 Mar '13

0.71 Tax Burde 0.67 0.68 0.681.00 Interest Bu 1.00 1.00 1.000.19 Operating P 0.15 0.16 0.151.22 Asset Turn 1.76 1.73 1.671.22 Financial 1.41 1.46 1.67

20.16% Return on 24.46% 27.16% 27.64%

Liquidity Ratios

Mar '13 Mar '15 Mar '14 Mar '13

4.11 Current Rat 2.39 2.39 2.182.64 Quick Rati 1.46 1.56 1.371.03 Cash Ratio 0.42 0.62 0.710.76 Cash Flow 0.73 0.58 0.58

Solvency Ratios

Mar '13 Mar '15 Mar '14 Mar '13

0.14 Debt to Tot 0.22 0.24 0.280.16 Debt to Equ 0.29 0.31 0.38

10509.43 Interest Co 2561.75 753.86 1603.130.86 CFO to Deb 0.80 0.65 0.83