FINANCIAL ACCOUNTING – VI

PROJECT TOPIC – Analysis of financial statement of a

Company and Limited Liability Partnership.
TAUGHT BY – Kavita madam

GROUP STUDENTS-
1. Saba Mulla 8447
2. Amrita Menon 8438
3. Marefa Jariwala 8411
4. Parag Dhawale 8387
5. Ravina Choudhary 8383
 INTRODUCTION
Muthoot Finance Ltd. is
an Indian financial corporation.
It is known as the largest gold financing company in the world.[2][3] In
addition to financing gold transactions, the company offers foreign
exchange services, money transfers, wealth management services, travel
and tourism services, and sells gold coins at Muthoot Finance Branches.
The company's headquarters are located in Kerala, India, and it operates
over 4,400 branches throughout the country. Outside India, Muthoot
Finance is established in the UK, the US, and the United Arab Emirates.
While the company falls under the brand umbrella of
the Muthoot Group, its stocks are listed on the Bombay Stock
Exchange (BSE) and NSE. As of March 2012, revenue (after expenditure)
stood at more than Rs. 23,000 crore ($4.2 billion).[4] The target market of
Muthoot Finance includes small businesses, vendors, farmers, traders,
SME business owners, and salaried individuals. And a.v
The company was incorporated as a private limited company on March
14, 1997 with the name “The Muthoot Finance Private Limited” under
the Companies Act.[5]
On November 18, 2008, the company was converted into a public limited
company with the name “Muthoot Finance Limited”.[6] During the year
2009-10, the company added 620 new branches.[7]
In July 2016, Muthoot Finance acquired 46.83% of the capital of Belstar
Investment and Finance Private Limited (BIFPL)
 CONSOLIDATED BALANCE SHEET AS AT 31ST MARCH, 2017

Particulars Note Figures as at March 31, ,

2017

LIABILITIES
Equity and Liabilities
Share Holder’s Funds
Share Capital 1 19,370.56
Reserves & Surplus 2 1,56,630.33
Minority Interest 4,336.04
Money received against share warrants -
Share Application Money Pending Allotment -
Non-Current Liabilities
Long Term Borrowings 3 4,55,672.68
Deferred Tax Liability (net) -
Other Long Term Borrowings 4 158.03
Long Term Provisions 5 1,147.30
Current Liabilities
Short Term Borrowings 6 6,57,741.43
Trade Payables 7 1,244.90
Other Current Liabilities 8 2,19,925.04
Short Term Provisions 9 20,618.10
TOTAL 15,36,844.41
ASSETS
Non-Current Assets
Fixed Assets
Tangible Assets 10 57,529.32
Intangible Assets 10 905.71
Capital Work in Progress 58.65
Intangible Assets under Development 629.01
Non-Current Investments 11 9,134.73
Deferred Tax Assets 12 603.50
Long Term Loans & Advances 13 1,06,449.20
Inventories 30,012.93
14
Other Non-Current Assets 15,519.88
Total Non-Current Assets
15 2,20,842.93
Current Assets:
Current Investments 16 1,433.31
Trade Receivables 17 2,193.35
Cash & Cash Equivalents 18 75,826.99
Short Term Loans & Advances 11,60,416.65
19
Other Current Assets 76,131.18
20 13,16,001.48
Total Current Assets
TOTAL 15,36,844.41
CONSOLIDATED STATEMENT OF PROFIT & LOSS FOR THE YEAR ENDED 31ST MARCH 2017

Figures for the

Note year ended
Particulars
March 31, 2017

I. REVENUE
Revenue from Operations 21 2,23,861.57
Other Income 22 16,829.51
II.Total Revenue 2,40,691.08
III. EXPENSES
Employee Benefit Expenses 23 45,817.99
Finance Cost 24 1,22,027.25
Depreciation and Amortization 10 8,015.49
Other Expenses 25 41,290.58
IV.Total Expenses 2,17,151.31
V.Profit before Exceptional and Extra Ordinary
Items and Tax (II-IV)
VI. Exceptional Items 23,539.77
VII. Profit before Extra-Ordinary Items and Tax (V-VI) -
VIII. Extra-Ordinary Items 23,539.77
IX. Profit Before Tax (VII-VIII) -
X.Tax Expenses: 23,539.77
Current Tax
Deferred Tax 7,601.54
XI. Profit for the Period from Continuing Operations 142.58
(IX-X)
XII. Profit/(Loss) from Discontinuing Operations 15,795.65
XIII. Tax Expense of Discontinuing Operations -
XIV. Profit/(Loss) from Discontinuing Operations (after -
tax) (XII-XIII)
XV. Profit after Tax before Minority Interests (XI+XIV) -
XVI. Less: Minority Interests 15,795.65
XVII. Profit for the year (XV-XVI) (686.29)
XVIII. Earnings per Equity Share 15,109.36
Basic
Diluted 8.10
8.10

,
 BALANCE SHEET ANALYSIS
SHARE CAPITAL:

The Company has only one class of shares namely equity shares having a face value of Rs.10. The Board
of Directors have proposed 7.5% dividend for the FY 2016-17.
the Holding Company has issued 72,38,100 shares vide Right Issue and has allotted 71,42,860
shares at Rs.10/- each at a premium of Rs.200/- per share.

RESERVES:
Muthoot Fincorp Limited has maintained a Debenture Redemption Reserve
of 25% of the total value of Debentures and Subordinated Debt outstanding as on March 31, 2017 which were
issued through public issue

LONG TERM BORROWINGS:

. Debentures issued by way of public issue are secured against
charge on current assets, book debts, receivables (both present & future) and immovable property of the
company
Muthoot Microfin Limited has raised Rs.20,500 lakhs as Non-Convertible Debentures during the year against
exclusive charge
over its book debts.

SHORT TERM LOAN AND ADVANCES:

Advances considered good includes:
- Rs.7,160.91 lakhs advanced to Directors, relatives of Directors and Rs.1,487.23 lakhs advanced to M/s. MPG
Hotels
& Infrastructure Ventures Private Limited and Rs.53,265.50 lakhs advanced towards M/s. Muthoot Estate
Investments

CSR EXPENDITURE:
For the year ended March 31, 2017, the Group has incurred expenditure of Rs.302.66 lakhs towards CSR
activities
as against Rs.844.24 lakhs (including the shortfall of Rs.611.08 up to 31st March 2016) required to be spent
under
Section 135 of the Companies Act, 2013, resulting in a total shortfall of Rs.541.58 lakhs as on 31st March,
2017.
The said shortfall is expected to be utilized in the subsequent years.

PROFIT AND LOSS A/C ANALYSIS

The other income includes income from power generation, income from investments,
income on sale of loan assets, commission,
miscellaneous income and so on.

Remuneration was paid to the directors of the company.

The other expense includes rent, electricity and water charges, insurance, security
charges, marketing expenses, postage and telegram,
rates and taxes and so on.

The company provides the benefits of provident fund to its employees by continuing
under the
employees provident fund scheme

the company has created a trust named “muthoot fincorp employees’ group gratuity
trust” to meet the liability
towards gratuity benefits payable to its employees. The retirement benefits valued on
actuarial basis amounting
to rs.946.09 lakhs, has been fully provided. The fund is administered by life insurance
corporation of india (“lic”)

during the year, commission was paid to the extent of rs.166.00 lakhs to the
director,
as per decision of the company.
Earnings Per Share - This entry is often included at the end of P&L report. It reflects
the net profit as its division by the total number of shares outstanding. The result is the
amount of net profit, earned by one share of common stock. This measurement can be
useful for the risk management of a stockholder
 Conclusion
We have taken into account the provisions of the Act and the Rules made
thereunder including the Accounting Standards. Based on the data
provided, the following analysis was made:
Based on the auditor’s reports of the subsidiaries, the company has
complied with all the provisions of the Companies Act,2013.
In our opinion and the best to our information, the consolidated financial
statements give a true and fair view in conformity with the accounting
principles.
Proper books of accounts as required by law relating to the preparation of
the Consolidated Financial Statements have been kept so far as it appears
from our examination of those books and the reports of the statutory
auditors.
The Consolidated Balance Sheet, the Consolidated Statement of Profit and
Loss and the Consolidated Cash Flow Statement dealt with by this report
are in agreement with the books of account.
In our opinion, based on the reports of the statutory auditors of the
subsidiaries, the aforesaid Consolidated Financial Statements comply with
the Accounting Standards specified under section 133 of the Act, read with
rule 7 of the Companies (Accounts) Rules,2014.
The group has disclosed the impact, if any, of pending litigations as at 31’st
March,2017, on its financial position in its consolidated financial statements.