ASSIGNMENT – 01

MBA – 1st YEAR

(2023-24)

SUBMITTED BY: SUBMITTED TO

Akshat Gupta (AU23C2035) Dr. Masuma Mehata
Keerti Khullar (AU23C2014) ma’am
 Whirlpool India Ltd.
Introduction
Whirlpool of India Ltd. is a subsidiary of Whirlpool Corporation, specializing in
manufacturing and selling home appliances such as refrigerators, washing machines, air
conditioners, and microwave ovens in the Indian market. Known for its innovation, quality,
and customer satisfaction, the company has established a strong presence and reputation in
the consumer durables sector since its inception in 1960.

Financial Statements
Balance sheet
Financial ratios
 Interpretation of ratios:

Debt / equity :

 The debt-to-equity ratio (D/E ratio) depicts how much debt a company has compared
to its assets. It is calculated by dividing a company's total debt by total shareholder
equity.

 Whirlpool has zero debt to equity ratio which indicates that a company has no
debt in its capital structure relative to its equity. In other words, the company is
entirely financed by equity, whether through the issuance of common stock or
retained earnings.

 Following are the benefits of zero to equity:

1. No debt obligations
2. Financial stability
3. Investors preference
4. Reduces financial risk of the company.
Current Ratio: With a value around 2, it indicates that the company has more than
twice the current assets compared to its current liabilities. This suggests that the
company is well-positioned to cover its short-term obligations with its short-term
assets.

The formula for the current ratio is:

Asset Turnover Ratio: The ratio is around 1, meaning that for every rupee of assets,
the company generates around 1 rupee of revenue. It's essential to note the
significant decrease in the ratio from March 20 to March 21, which might indicate a
change in the company's efficiency in utilizing its assets to generate revenue.
Formula

Quick Ratio: With a value around 1, it indicates that the company has sufficient
quick assets (assets that can be quickly converted to cash) to cover its short-term
liabilities. This suggests a good level of liquidity.
Inventory Turnover Ratio: This ratio indicates how many times the company's
inventory is sold and replaced over a period. A value of around 3 means that the
company's inventory is turning over approximately 3 times per year. This ratio helps
assess the efficiency of inventory management.

Sources of funds:

 Internal Cash Flow: Profits generated from their core business operations
can be a significant source of funds for reinvestment and growth.
 Debt Financing: This could involve issuing bonds, taking out loans from
banks or financial institutions. The recent negative Cash Flow from Financing
Activities suggests they might have used some debt in the past year, but their
overall net cash flow being positive indicates they might have used other
sources as well.
 Equity Financing: Issuing new shares can raise capital, although recent
news doesn't indicate any major public offerings.

Financial analysis:

Income statement

Mar-23 Mar-22 Mar-21 Mar-20 Mar-19

Sales 6,667 6,196 5,899 5,992 5,397
Other Income 127 63 89 128 104
Total Income 6,794 6,259 5,989 6,121 5,502
Total Expenditure 6,482 5,603 5,523 5,448 4,866
EBIT 312 656 466 672 635
Interest 15 15 15 19 9
Tax 73 83 117 176 219
Net Profit 224 557 333 476 407
Analysis :
Sales:

 Sales have increased slightly over the past five years, from Rs. 5,397 Cr. in Mar 2019
to Rs. 6,667 Cr. in Mar 2023.
Net Profit:

 Net profit has fluctuated somewhat over the years, but the overall trend is positive. It
reached its highest point in Mar 2023 at Rs. 224 Cr., which is an increase of 121%
from Mar 2019 (Rs. 407 Cr.).

Other Observation

 Total Income (Sales + Other Income) has also grown slightly over the period.
 Total Expenditure has generally followed the same trend as Total Income.
 EBIT (Earnings Before Interest and Tax) has increased over the five years, indicating
better profitability before interest and tax expenses.

Overall:

The company's income statement suggests a gradual improvement in its financial

performance over the past five years. Sales, net profit, and EBIT have all shown a
positive trend.

Cash flow statement

Mar-23 Mar-22 Mar-21 Mar-20 Mar-19 T Mar 19 - Mar 23

Operating
269 97 524 380 402
Activities
Investing
-101 -468 337 -71 -261
Activities
Financing
-100 -88 -75 -61
Activities
Others 0 9 0 0 0

Net Cash Flow 67 -450 786 221 78

Analysis:

 Positive Operating Cash Flow: The company generated a positive cash flow
of Rs. 269 Cr. from its core business operations in March 2023. This indicates
that they collected more cash from customers than they paid to suppliers and
for other operating expenses.

 Negative Investing Cash Flow: Whirlpool of India used Rs. 101 Cr. in cash
for investing activities in March 2023. This could be due to a number of
reasons, such as purchasing new property, plant, and equipment, or investing
in research and development.

 Negative Financing Cash Flow: The company used Rs. 100 Cr. in cash for
financing activities in March 2023. This could be due to a number of reasons,
such as repaying debt or paying dividends to shareholders.

 Positive Net Cash Flow: Despite the negative cash flow from investing and
financing activities, the company's overall net cash flow for March 2023 was
positive at Rs. 67 Cr. This means that they generated more cash than they
used in that month.
Summary

Activity Cash Flow (Cr)

Operating Activities 269
Investing Activities -101
Financing Activities -100
Net Cash Flow 67

A comment on there working capital position and policy:

Whirlpool of India’s current liabilities (₹1,897.54 Cr) are nearly equal to its current assets
(₹1,897.54 Cr) as of March 23. This indicates that the company has a low working capital
position.
A low working capital position can be risky because it means the company doesn't have a lot
of buffer to cover its short-term debts. However, it can also be a sign of efficient inventory
management and collections from customers.

 Current assets (₹1,897.54 Cr): This includes cash, inventory, and short-term
receivables. A low current asset balance could indicate that the company is
selling its inventory quickly and collecting payments from customers promptly.
 Current liabilities (₹1,897.54 Cr): This includes short-term debt, accounts
payable, and accrued expenses. A high current liability balance could indicate
that the company is relying on creditors to finance its operations.

News
1. Stake Sale: Whirlpool Corporation has sold a 24% stake in its Indian unit.
2. Value: The stake sale amounted to $468 million.
3. Whirlpool Corporation reduces 1,000 jobs globally to save $400M, driven by
US home sales slump. Q1 net sales at $4.49B. Stock rises 1.7% post-
announcement.

 A win win for both. Some benefits are as follows:

Valuation- Strategic
Optimism
Driven Portfolio
about India
Decision Management

Global
Market
Strategy
Perception
Alignment

Key Statistics

 Whirlpool of India Ltd. Stands at the valuation score of 21, which indicates an Expensive
Valuation.
 Valuation V/S peers

symphony

blue star

voltas

Dixon tech

whirlpool

0 5 10 15 20 25

 Whirlpool of India Ltd. has second-highest Valuation score amongst its peers, behind Blue
Star Ltd.

 Whirlpool of India Ltd. has a Momentum score of 49, which says that it is Technically Neutral.
  Daily volume - Daily volume equates to how many shares are traded each day.

Voltas
Voltas Limited, established in 1954, is a leading Indian company specializing in air
conditioning and cooling technology solutions. With a strong focus on innovation and
sustainability, Voltas offers a wide range of high-quality products and services for residential,
commercial, and industrial applications. Its commitment to customer satisfaction and
environmental responsibility has propelled it to prominence not only in India but also in
international markets. Through continuous research, strategic partnerships, and a dedicated
workforce, Voltas remains at the forefront of the industry, setting standards for excellence
and efficiency.
Financial statements:
 Balance sheet

Balance Sheet of Voltas (in Rs. Cr.) Mar 23 Mar 22 Mar 21 Mar 20 Mar 19
12 mths 12 mths 12 mths 12 mths 12 mths
EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share Capital 33.08 33.08 33.08 33.08 33.08
Total Share Capital 33.08 33.08 33.08 33.08 33.08
Reserves and Surplus 5,418.99 5,466.48 4,960.27 4,247.13 4,076.91
Total Reserves and Surplus 5,418.99 5,466.48 4,960.27 4,247.13 4,076.91
Total Shareholders Funds 5,452.07 5,499.56 4,993.35 4,280.21 4,109.99
Minority Interest 41.65 38.08 36.10 36.49 34.75
NON-CURRENT LIABILITIES
Long Term Borrowings 21.15 0.00 0.00 5.41 0.00
Deferred Tax Liabilities [Net] 5.28 12.35 0.00 1.42 6.59
Other Long Term Liabilities 47.35 37.40 32.03 7.34 0.70
Long Term Provisions 91.97 103.03 89.91 93.43 84.66
Total Non-Current Liabilities 165.75 152.78 121.94 107.60 91.95
CURRENT LIABILITIES
Short Term Borrowings 594.82 343.19 251.40 212.44 314.65
Trade Payables 3,012.63 2,942.05 2,464.53 2,688.89 2,374.49
Other Current Liabilities 846.09 611.82 668.61 689.54 466.26
Short Term Provisions 166.00 158.85 119.55 140.89 129.89
Total Current Liabilities 4,619.54 4,055.91 3,504.09 3,731.76 3,285.29
Total Capital And Liabilities 10,279.01 9,746.33 8,655.48 8,156.06 7,521.98
ASSETS
NON-CURRENT ASSETS
Tangible Assets 446.17 304.20 307.21 298.60 261.80
Intangible Assets 6.19 7.17 8.46 9.48 8.93
Capital Work-In-Progress 98.25 59.29 8.81 26.28 15.66
Fixed Assets 550.61 370.66 324.48 334.36 286.39
Non-Current Investments 2,801.48 3,181.12 2,797.11 1,822.90 1,150.17
Deferred Tax Assets [Net] 35.56 44.00 55.77 72.87 105.89
Long Term Loans And Advances 0.08 0.10 0.17 0.22 0.31
Other Non-Current Assets 372.48 198.92 216.23 274.97 259.74
Total Non-Current Assets 3,832.52 3,867.11 3,466.07 2,577.63 1,874.81
CURRENT ASSETS
Current Investments 307.16 434.27 249.32 520.39 1,235.69
Inventories 1,591.97 1,661.39 1,279.60 1,468.94 1,090.66
Trade Receivables 2,191.85 2,109.67 1,800.93 1,827.25 1,803.17
Cash And Cash Equivalents 708.38 571.67 458.79 308.41 321.11
Short Term Loans And Advances 0.49 3.09 2.13 2.04 11.33
Other Current Assets 1,646.64 1,099.13 1,398.64 1,451.40 1,185.21
Total Current Assets 6,446.49 5,879.22 5,189.41 5,578.43 5,647.17
Total Assets 10,279.01 9,746.33 8,655.48 8,156.06 7,521.98
OTHER ADDITIONAL INFORMATION
CONTINGENT LIABILITIES, COMMITMENTS
Contingent Liabilities 782.02 705.14 691.83 2,766.08 2,333.09
BONUS DETAILS
Bonus Equity Share Capital 9.77 9.77 9.76 9.76 9.76
NON-CURRENT INVESTMENTS
Non-Current Investments Quoted Market 756.09 776.18 658.49 389.59 564.01
Value
Non-Current Investments Unquoted Book
Value 2,046.48 2,404.94 2,139.78 1,434.47 375.94
CURRENT INVESTMENTS
Current Investments Quoted Market Value 105.37 103.09 58.01 10.74 101.50
Current Investments Unquoted Book Value 201.79 331.18 191.31 509.65 1,134.19

 Financial ratios :

Co Co Co Co Co
Col lu lu lu lu lu
um m m m m m
n1 n2 n3 n4 n5 n6
FIN
ANC
IAL M M M M M
RAT ar ar ar ar ar
IOS 23 22 21 20 19
Tot
al
De
bt/E
quit
y 0. 0. 0. 0. 0.
(X) 04 02 02 02 03
Cur
rent
Rati
o 1. 1. 1. 1. 1.
(X) 44 42 47 48 63
Ass
et
Tur
nov
er
Rati 94 98
o 0. 0. 0. .3 .1
(%) 8 83 82 6 3
Qui
ck
Rati
o 0. 0. 1. 1. 1.
(X) 95 95 03 04 3
Inv 2. 2. 1. 4. 6.
ent 25 39 91 93 67
ory
Tur
nov
er
Rati
 o
(X)

Analysis:

Debt-to-Equity Ratio:

 This ratio is very low (below 0.1) for all five years, indicating Voltas Ltd.
finances most of its operations through equity, which is a sign of strong
financial health and low reliance on debt. This has been consistent over the
past five years, showing a conservative approach to debt.

Current Ratio:

 The ratio has remained above 1 throughout the period (between 1.42 and
1.63), indicating Voltas Ltd. has sufficient current assets to cover its short-
term liabilities. This suggests good short-term liquidity.

Asset Turnover Ratio:

 While the ratio has fluctuated, further analysis is needed. Without industry
benchmarks for comparison, it's difficult to determine if the changes are
significant. A financial analyst might need to investigate the reasons behind
any substantial fluctuations.

Quick Ratio:

 Similar to the current ratio, the quick ratio has also stayed above 1 throughout
the period (between 0.95 and 1.3), indicating good short-term liquidity even
without relying on immediate inventory sales.

Inventory Turnover Ratio:

 Again, the significant fluctuations in the inventory turnover ratio require further
investigation. Industry benchmarks would be helpful to determine if the
changes are within the expected range for Voltas' industry.

Overall:

Voltas Ltd.'s financial ratios suggest a financially strong company with a conservative
debt structure, good short-term liquidity, and potentially some room for improvement
in asset utilization. A more comprehensive analysis would involve:

 Comparing these ratios to industry benchmarks.

 Looking at Voltas Ltd.'s financial statements for trends and explanations
behind any significant fluctuations in the ratios.
 Considering other financial metrics like profitability ratios to get a more
complete picture of the company's financial health.
Sources of funds:

 Operating Activities: This has been the primary source of funds for Voltas
Ltd. over the past five years. In Mar 2023, operating activities generated a
cash flow of Rs. 159 Cr. This indicates they collected more cash from
customers than they paid to suppliers and for other operating expenses.
 The trend for operating cash flow seems volatile, with a significant drop in Mar
2021 (Rs. -321 Cr.) and a rise in Mar 2023 (Rs. 159 Cr.). Further analysis of
the income statement might reveal reasons behind these fluctuations.
 Financing Activities: While not a major source in Mar 2023 (positive Rs. 55 Cr.),
financing activities can provide funds through issuing debt or equity.
 Equity Financing: Issuing new shares can raise capital, although recent
news doesn't indicate any major public offerings.

Financial analysis:
INCOME STAEMENT
Column1 Column2 Column3 Column4 Column5 Column6
Annual Mar-23 Mar-22 Mar-21 Mar-20 Mar-19
Sales 9,498 7,934 7,555 7,658 7,124
Other Income 168 189 188 230 186
Total Income 9,667 8,123 7,744 7,888 7,310
Total Expenditure 9,209 7,290 6,948 7,054 6,548
EBIT 457 833 796 834 762
Interest 29 25 26 21 32
Tax 170 191 180 223 163
Net Profit 256 616 589 589 565

Sales and Revenue:

 Sales have fluctuated somewhat over the past five years, with a peak of Rs.
9,498 Cr. in Mar 2023 and a low of Rs. 7,124 Cr. in Mar 2019. There's a slight
upward trend, with a growth of 33.5% from Mar 2019 to Mar 2023.
 Other income has also increased slightly over the period, from Rs. 186 Cr. in
Mar 2019 to Rs. 230 Cr. in Mar 2023.
 Total income has increased by 31.8% from Mar 2019 (Rs. 7,310 Cr.) to Mar
2023 (Rs. 9,667 Cr.). This suggests that Voltas Ltd. has been growing its
revenue streams.

Expenses:

 Total expenditure has also increased over the past five years, from Rs. 6,548
Cr. in Mar 2019 to Rs. 9,209 Cr. in Mar 2023. However, the rate of increase in
expenditure (40.7%) is slightly higher than the rate of increase in total income
(31.8%).

Profitability:
  EBIT (Earnings Before Interest and Tax) has fluctuated significantly. It
reached a peak of Rs. 833 Cr. in Mar 2020 and then declined to Rs. 457 Cr. in
Mar 2023. This suggests some volatility in the company's core profitability.
 Interest expense has decreased slightly over the period, indicating potentially
good debt management.
 Tax expense has also decreased, but this could be due to various factors like
changes in tax laws or increased tax deductions.
 Net profit has shown a mixed trend. It peaked at Rs. 616 Cr. in Mar 2020 and
then declined to Rs. 256 Cr. in Mar 2023. The decrease in net profit despite
increasing sales suggests a decline in overall profitability.

Cash flow statement:

Mar-23 Mar-22 Mar-21 Mar-20 Mar-19 Trend Mar 19 - Mar 23

Operating
159 584 556 462 -321
Activities
Investing
-81 -364 -255 -210 392
Activities
Financing
55 -107 -121 -293 -18
Activities
Others 0 0 0 0 0
Net Cash Flow 132 112 178 -41 53

Analysis:

 Positive Operating Cash Flow: The company generated a positive cash flow
of Rs. 159 Cr. from its core business operations in March 2023. This indicates
that they collected more cash from customers than they paid to suppliers and
for other operating expenses.

 Positive Investing Cash Flow: Voltas Ltd. used Rs. 81 Cr. in cash for
investing activities in March 2023. This could be due to a number of reasons,
such as purchasing new property, plant, and equipment, or investing in
research and development.

 Positive Financing Cash Flow: The company received Rs. 55 Cr. in cash
from financing activities in March 2023. This could be due to a number of
reasons, such as issuing new debt or equity, or receiving a loan.

 Positive Net Cash Flow: Despite the use of cash for investing activities, the
company's overall net cash flow for March 2023 was positive at Rs. 132 Cr.
This means that they generated more cash than they used in that month.
 Summary

Activity Cash Flow (Cr)

Operating Activities 159
Investing Activities -81
Financing Activities 55
Net Cash Flow 132

Working Capital Analysis of Voltas Ltd. (Mar 2019 - Mar 2023)

Working Capital Position:

 Current Ratio: We can calculate the current ratio (current assets / current liabilities)
for each year:
o Mar 2023: 6,446 / 4,619 ≈ 1.39
o Mar 2022: 5,879 / 4,055 ≈ 1.45
o Mar 2021: 5,189 / 3,504 ≈ 1.48
o Mar 2020: 5,578 / 3,731 ≈ 1.49
o Mar 2019: 5,647 / 3,285 ≈ 1.72

A current ratio above 1 indicates a company has enough current assets to cover its
short-term liabilities. Voltas Ltd.'s current ratio has consistently remained above 1
throughout the period, suggesting a good working capital position with sufficient
resources to meet its short-term obligations.
  Quick Ratio (Acid Test Ratio): We can't calculate the quick ratio (current assets
excluding inventory / current liabilities) because the inventory data isn't provided.
However, the current ratio itself provides a good initial indication.

Working Capital Policy:

 Moderate Approach: The current ratio that stays above 1 but not significantly higher
suggests a moderate approach to working capital management. Voltas Ltd. seems to
maintain a balance between having enough current assets to cover short-term debts
and not holding excessive inventory that could tie up cash.

Overall:

Voltas Ltd.'s working capital position appears to be good based on the current ratio
consistently exceeding 1. Their approach seems to prioritize moderate working
capital levels, balancing short-term debt coverage with efficient cash flow
management.

News and press releases:

 UBS upgraded Voltas' stock recommendation 2024.
 UBS believes Voltas has strong growth potential.
 Voltas and Arcelik joint venture are expected to boost market share.
 This is due to Voltas achieving record sales of 2 million units of ACs in
FY24.
 This is the first time any brand has reached this milestone in India.

Symphony

Introduction:
Symphony is the leading Indian multi-national air-cooling company with presence in over 60
countries. The company offers a wide range of air coolers for household, commercial and
industrial spaces. They are known for their innovative and energy efficient products.
Financial statement:

Balance Sheet of Symphony (in Rs. Cr.) Mar 23 Mar 22 Mar 21 Mar 20 Mar 19
12 mths 12 mths 12 mths 12 mths 12 mths
EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share Capital 13.99 13.99 13.99 13.99 13.99
Total Share Capital 13.99 13.99 13.99 13.99 13.99
Reserves and Surplus 866.92 825.48 745.23 625.22 652.07
Total Reserves and Surplus 866.92 825.48 745.23 625.22 652.07
Total Shareholders Funds 880.91 839.47 759.22 639.21 666.06
Minority Interest 0.00 5.34 4.70 4.25 3.36
NON-CURRENT LIABILITIES
Long Term Borrowings 82.72 113.01 139.70 71.51 123.60
Deferred Tax Liabilities [Net] 9.32 14.39 5.72 6.79 5.69
Other Long Term Liabilities 20.19 22.07 26.03 28.19 0.00
Long Term Provisions 10.43 9.54 10.72 9.15 7.06
Total Non-Current Liabilities 122.66 159.01 182.17 115.64 136.35
CURRENT LIABILITIES
Short Term Borrowings 114.11 108.46 44.30 101.69 64.25
Trade Payables 165.53 149.36 130.21 114.54 129.09
Other Current Liabilities 100.45 90.69 88.11 76.42 58.18
Short Term Provisions 19.72 14.82 10.89 12.53 13.27
Total Current Liabilities 399.81 363.33 273.51 305.18 264.79
Total Capital And Liabilities 1,403.38 1,367.15 1,219.60 1,064.28 1,070.56
ASSETS
NON-CURRENT ASSETS
Tangible Assets 138.83 137.14 137.25 135.48 89.63
Intangible Assets 52.42 54.51 54.90 46.90 4.67
Capital Work-In-Progress 0.00 0.00 0.46 1.83 5.84
Fixed Assets 191.49 191.99 192.63 184.21 100.14
Non-Current Investments 309.83 168.78 159.33 113.35 186.63
Deferred Tax Assets [Net] 19.56 6.35 9.05 0.00 19.12
Long Term Loans And Advances 0.00 0.00 0.00 0.00 0.00
Other Non-Current Assets 1.49 1.64 4.78 4.67 7.55
Total Non-Current Assets 681.77 531.87 527.18 438.20 456.52
CURRENT ASSETS
Current Investments 217.03 331.25 325.09 298.72 271.86
Inventories 249.71 173.21 118.38 117.82 119.49
Trade Receivables 115.21 207.69 166.14 120.99 104.69
Cash And Cash Equivalents 56.72 67.55 38.49 25.44 53.75
Short Term Loans And Advances 0.00 0.00 0.00 0.00 0.00
OtherCurrentAssets 82.94 55.58 44.32 63.11 64.25
Total Current Assets 721.61 835.28 692.42 626.08 614.04
Total Assets 1,403.38 1,367.15 1,219.60 1,064.28 1,070.56
OTHER ADDITIONAL INFORMATION
CONTINGENT LIABILITIES, COMMITMENTS
Contingent Liabilities 9.89 2.63 5.12 248.07 255.84
BONUS DETAILS
Bonus Equity Share Capital 7.00 7.00 7.00 7.00 7.00
NON-CURRENT INVESTMENTS
Non-Current Investments Quoted Market
Value 309.83 168.78 175.62 120.87 191.23
Non-Current Investments Unquoted Book
Value 0.00 0.00 0.00 9.84 16.90
CURRENT INVESTMENTS
 Current Investments Quoted Market Value 19.79 27.75 0.00 0.00 0.00
Current Investments Unquoted Book Value 197.24 303.50 325.09 222.80 213.92

Financial ratios:

FINANCIAL RATIOS Mar 23 Mar 22 Mar 21 Mar 20 Mar 19

122.9448 159.27575 182.39426 115.92674 136.59733

Debt to equity Ratio 9 7 2 8 8

1.804882 2.2989568 2.5316076 2.0515105 2.3189697

Current Ratio 3 7 2 8 5

0.845815 0.7599751 0.7371269 0.7874383

Asset Turnover Ratio 1 3 3 1.0354418 5

0.0877738 0.0877336 0.1700680 0.0850022

Return On Investment 0.081945 4 8 3 4

0.096882 0.1154956 0.1190211 0.1642468 0.1079478

Net Profit Margin 9 7 3 2 1

Debt-to-Equity Ratio (122.94 - 182.39):

 This ratio is very high, exceeding 100 for all five years (Mar 2019 - Mar 2023).
A high ratio indicates Symphony finances most of its operations through debt,
which can be risky. It suggests a high dependence on lenders and increases
the company's vulnerability to economic downturns or rising interest rates.
The increasing trend (122.94 to 182.39) over the past five years suggests
Symphony might be relying more heavily on debt financing.

Current Ratio (1.80 - 2.53):

 This ratio is above 1 for all five years, indicating Symphony has sufficient
current assets to cover its short-term liabilities. A ratio between 1 and 2 is
generally considered good. However, the trend suggests some volatility, with
a decrease from Mar 2021 (2.53) to Mar 2023 (1.80). This could indicate a
decrease in current assets relative to short-term liabilities, potentially
impacting short-term liquidity.

Asset Turnover Ratio (0.73 - 1.03):

 A lower ratio indicates underutilization of assets. Symphony's ratio has

fluctuated between 0.73 and 1.03 over the past five years. Without industry
benchmarks for comparison, it's difficult to determine if these ratios are good
or bad. Ideally, a company would strive to increase its asset turnover ratio to
generate more sales from its existing assets.
Return On Investment (ROI) (0.08 - 0.17):

 ROI measures how much profit the company generates per rupee invested by
shareholders. A low ROI suggests Symphony is not generating a significant
return on its shareholders' equity. The ratio has also fluctuated over the past
five years, with a slight increase from Mar 2019 (0.08) to Mar 2023 (0.17).

Net Profit Margin (0.09 - 0.16):

 This ratio indicates how much profit Symphony makes for every rupee of
revenue. The ratio has fluctuated between 0.09 and 0.16 over the past five
years, suggesting some volatility in profitability. A higher net profit margin is
generally better.

Sources of funds:

Primary Source of Funds (Negative Cash Flow):

 Symphony Company has had a negative net cash flow for all five years (Mar
2019 - Mar 2023). This indicates that they used more cash than they
generated from their operations, investing activities, and financing activities
during these periods. In Mar 2023, the net cash used was Rs. -102 Cr.
 Operating Activities: While the specific details aren't available, a negative
cash flow from operating activities could indicate that Symphony is struggling
to collect payments from customers or that their operating expenses are
exceeding their revenue.
 Investing Activities: Negative cash flow in investing activities suggests that
Symphony might be investing in new assets or projects, requiring significant
cash outflows.

Income statement:
INCOME STATEMENT
Annual Mar-23 Mar-22 Mar-21 Mar-20 Mar-19
Sales 1,187 1,039 899 1,102 843
Other Income 50 39 31 54 38
Total Income 1,237 1,079 931 1,157 882
Total Expenditure 1,075 902 789 916 745
EBIT 162 176 141 241 137
Interest 10 8 10 10 6
Tax 36 46 23 48 38
Net Profit 115 120 107 181 91
Income Statement Analysis for Symphony Company (Mar 2019 - Mar 2023)

Here's an analysis of Symphony Company's income statement for the past five years
(Mar 2019 to Mar 2023):

Sales and Revenue:

 Sales have fluctuated somewhat over the past five years, with a peak of Rs. 1,187
Cr. in Mar 2023 and a low of Rs. 843 Cr. in Mar 2021. However, there's a slight
upward trend, with a growth of 40.8% from Mar 2019 to Mar 2023.
 Other income has also increased slightly over the period, from Rs. 31 Cr. in Mar 2019
to Rs. 54 Cr. in Mar 2023.
 Total income has increased by 43.2% from Mar 2019 (Rs. 882 Cr.) to Mar 2023 (Rs.
1,237 Cr.). This suggests that Symphony Company has been growing its revenue
streams.

Expenses:

 Total expenditure has also increased over the past five years, from Rs. 899 Cr. in Mar
2019 to Rs. 1,075 Cr. in Mar 2023. However, the rate of increase in expenditure
(19.7%) is lower than the rate of increase in total income (43.2%). This suggests
some improvement in expense management efficiency.

Profitability:

 EBIT (Earnings Before Interest and Tax) has shown a positive trend,
increasing from Rs. 112 Cr. in Mar 2019 to Rs. 162 Cr. in Mar 2023. This
indicates an improvement in core profitability.

 Interest expense has fluctuated but shows a slight decrease overall.

 Tax expense has also fluctuated, but this could be due to various factors like
changes in tax laws or increased tax deductions.

 Net profit has shown a positive trend, increasing from Rs. 19 Cr. in Mar 2019
to Rs. 115 Cr. in Mar 2023. This suggests an improvement in overall
profitability.

Overall:

Symphony Company has shown growth in sales and revenue, improved expense
management efficiency, and an upward trend in profitability over the past five years.

Cash flow analysis:

Mar-23 Mar-22 Mar-21 Mar-20 Mar-19 Trend Mar 19 - Mar 23 Column1

Operating
125 56 88 156 139 200
Activities
Investing
-11 6 -53 78 -250 -…100
Activities
Financing
-123 -33 -21 -240 117 -…200
Activities
 Others 0 0 0 0 0 4
Net Cash
-10 29 13 -5 7
Flow

Operating Activities:

 Positive Cash Flow: Symphony generated a positive cash flow of Rs. 125
Cr. from its core business operations in March 2023. This indicates that they
collected more cash from customers than they paid to suppliers and for other
operating expenses.

Investing Activities:

 Negative Cash Flow: Symphony used Rs. 11 Cr. in cash for investing
activities in March 2023. This could be due to a number of reasons, such as
purchasing new property, plant, and equipment, or investing in research and
development.

Financing Activities:

 Positive Cash Flow: The company received Rs. 123 Cr. in cash from
financing activities in March 2023. This could be due to a number of reasons,
such as issuing new debt or equity, or receiving a loan.

Net Cash Flow:

 Positive Net Cash Flow: Despite the use of cash for investing activities,
Symphony's overall net cash flow for March 2023 was positive at Rs. 137 Cr.
This means that they generated more cash than they used in that month.
Summary
Activity Cash Flow (Cr)
Operating Activities 125
Investing Activities -11
Financing Activities 123
Net Cash Flow 137

News and press releases

* The company has a 50% market share (water cooler) and does not plan on raising prices.
* Even though Symphony's revenue was lower than expected in Q3, the company's gross
margins increased.
* Symphony Ltd, an Indian company that sells air coolers under its own brand name in 60
countries, has acquired a Chinese air cooler company.
* This acquisition will allow Symphony Ltd to leverage China's free trade agreements with
ASEAN countries and increase exports to ASEAN markets.

Resources:
1. https://trendlyne.com/equity/1521/WHIRLPOOL/whirlpool-
of-india-ltd/
2. https://www.moneycontrol.com/
3. https://gemini.google.com/
4. https://www.livemint.com/
5. https://www.bbc.com/
6. https://trendlyne.com/equity/1500/VOLTAS/voltas-ltd/
7. https://indianexpress.com/section/india/
8. https://trendlyne.com/equity/1341/SYMPHONY/symphony-
ltd/
9. https://www.ndtv.com/india
10. https://www.moneycontrol.com/india/
stockpricequote/consumer-goods-white-goods/symphony/
SCS04