Financial Report on Abans Electrical PLC Essay

Table of Contentss

1. Executive sum-up

2.Abbreviations included in the Report………………………………………………………..

3. Sri Lanka Electricals Industry at Overview………………………………………………

4. Introduction of Abans Electricals PLC………………………………………………………

5. Profitableness Analysis………………………………………………………………………..

6.Efficiency / Underwriting Analysis…………………………………………………………

7.Solvency Analysis…………………………………………………………………………… .

8.Market Base Ratio Analysis………………………………………………………………… .

9.Recommendations and Conclusion…………………………………………………………

10. Reference………………………………………………………………………………..

11.Annexures………………………………………………………………………………… .

Executive sum-up

Public listed companies prepare and present their one-year studies included of the fiscal statements in order to carry the diversified information and regulative demands of different stakeholders and you can split the into two user groups ( The Investor group / Preference portion holders ) ,

The Investor group expression for chiefly in a fiscal statement is Profitability ( particularly future profitableness ) , direction efficiency ( effectual use of assets ) , Return on Investment-ROI ( Within the house / Alternatives ) , Risk taken ( Fiscal hazards and concern hazard ) , Return to proprietors ( Dividends/Drawings ) and the Preference portion holders look for chiefly Future profitableness, Net realisation value of assets and extent to which dividends are covered by net income,

This reports analyses the reported public presentation of the market leader of the Sri Lankan Electricals Industry, Abans Electricals PLC covering the profitableness, efficiency, solvency and market based ratios. The study has been prepared foregrounding the fact that the above facets of an electrical company are being measured and evaluated utilizing industry specific steps where applicable, which are non common to other industries. Recommendations have been made for betterment based on the analysis, in the countries which has room for betterment and better public presentation.

2. Abb reviations Included in the study

  • Sri Lanka Ports Authority market Intelligence study
  • Abans Electricals PLC
  • ROE – Return on Equity ( Net income )
  • ROA – Return on Assetss
  • ROR – Return on Revenue
  • EPS – Net incomes per portion

3. Sri Lanka Electricals Industry at a Overview

Sri Lanka Ports Authority market Intelligence study as below given study there are chiefly 9 cardinal electrical company ruling the market, as per the two of companies are registered members of Chamber of commercialism Sri lanka Import subdivision and chief two important participants are given in below confabs hold 75 % portion of the entire market, with authorities revenue enhancement of imported electronics goods alteration to ship of the vision of Sri lanaka current authorities & A ; president vision make Sri lanka besides like Dubai, Singapore, Hong kong a hub for responsibility free and responsibility paid competitory electronic goods marketer to pull touristry industry,

Industry Player as 2013

Class

Consignee

Containers

Electrical GOODS IMPORTERS

ABANS ELECTRICALS PLC

2534

SINGER SRI LANKA PLC

1219

UNI WALKERS LTD, , , , .

443

EVEREST INDL LANKA CO LTD

161

Rich WORLD INTL.

151

TELESONIC LANKA,

148

SINGHAGIRI PVT LTD

147

DAMRO ELECTRONICS PVT LTD.

140

4. Introduction of Abans Electricals PLC

Incorporated in 1981, Abans PLC is the critical trading arm of the Abans Group, stand foring universe celebrated trade names of electric and electronic place contraptions, dishware and cooking utensil, healthful and light adjustments and a host of other family points that make Sri Lankan people ‘s lives easier and better, Abans PLC have a web of over 230 salesrooms throughout Sri Lanka with their chief salesrooms located in three floors of their group caput office on the chief thoroughfare in the bosom of the Colombo City, with 14 more elect salesrooms in Liberty Plaza, Rajagiriya, Mt Lavinia, Welisara, Dehiwala, Katunayaka, Anuradhapura, Peliyagoda, Malabe, Maharagama, Kalutara, Kandy etc. Abans besides have more than 400 authorised traders stand foring them in the remotest rural countries conveying their merchandises within range of each household and every family in the state. All merchandises sold by Abans carry a sure warrant of quality and dependable after gross revenues service.

LG Logo

Hoover logo

JVC logo

Electrolux logo

Mitsubishi Electric

JBL

IBM logo

lenovo logo

HP logo

Toshiba logo

TOTO logo

Russell Hobbs logo

SANYO logo

Sony Ericsson logo

Philips logo

Premier logo

Pyrex logo

Logitech logo

Morphy Richards logo

Motorola logo

Panasonic logo

Jaipan logo

Jialing Richards logo

Euro Bath logo

Huawei logo

Titan logo

Frigidare logo

Apple logo

Canon logo

Haier logo

Hawkins logo

Dell logo

5. Profitableness Analysis

Profitableness analysis is really of import for direction and the investors as it gives an indicant whether the company has performed up to the outlooks and whether to put in a company’s stocks. Harmonizing to Abans Electrical PLC one-year study the portion holder and investor information profitableness step on merchandising of goods compare to old twelvemonth,

It clear shows a growing on gross revenues 2013/2012 comparison to 2011/2012 grown by 13 % and The net income nevertheless, addition by over 97 % ,

Beginning: Statement of Comprehensive Income For the Year Ended 31st March 2013

Beginning: Statement of Comprehensive Income For the Year Ended 31st March 2013

5.1 ROR – This is the net income after subtracting all disbursals and revenue enhancements, which determines the profitableness of the company.

ROR = Net Operating Income / Total Revenues

For Year 2013 = 128, 301, 134 / 2892, 337,763

= 4.4 %

For Year 2012 =62390871 / 2546,449, 683

= 2.4 %

Consequently the company has addition it’s ROR 2 % during the twelvemonth increasing profitableness.

5.2 ROE – This showcase the net net incomes that are earned and returned to equity stockholders.

ROE = ( Net Operating Income ( less preferred stock dividends / Average common equity )

For twelvemonth 2013 = 128,301,134- 0 / 551, 054920

= 23 %

For twelvemonth 2012 = 62390871 / 429,967, 401

= 14 %

ROE has been increased by 9 % promising higher returns to the stockholders of the company.

5.3 ROA – The profitableness on bing investing securities and premiums are measured utilizing this ratio.

ROA = ( Net Operating Income / Mean Average Assets )

For twelvemonth 2013 = 128, 301, 134 + 48,086,865 / 198, 845, 7597

= 8.8 %

For twelvemonth 2012= 639,0871 + 27046510 / 120 8902, 531

= 7.3 %

There is a little lessening in the ROA due to the rapid addition of assets during the fiscal twelvemonth 2013, comparison to 2012.

5.4 Share basal Earnings – These ratios measures the portion based profitableness and net incomes of the company. The relevant ratios are follows,

Beginning: Statement of Comprehensive Income For the Year Ended 31st March 2013

6. Efficiency / Underwriting Analysis

Efficiency Ratio chiefly use to take the entree of direction efficiency of the concern following will few analysis ego made to analysis efficiency degree of Abans Electrical PLC,

6.1 Debtors’ Turnover = Gross saless / Debtors

For twelvemonth 2013 = 289,233, 776,3 / 59,588,576

= 48.5 times

For twelvemonth 2012 = 2546,449, 683 / 40196076

= 63.3 times

Debtor’s aggregation period = 365 yearss / Debtors Turn over

For twelvemonth 2013 = 365 yearss / 48.5 times

= 7.5 yearss

For twelvemonth 2012 = 365 yearss / 63.3 times

= 6 yearss

Abans PLC have been maintain 1 yearss difference on outstanding aggregation yearss compare to 2013/2012,

7. Solvency Analysis

Solvency is once more another country where industry specific measuring are in topographic point to mensurate the solvency of industry, solvency is a really of import and indispensable for client to keep consistency degree of solvency borders and you can specify Solvency in two groups one is short term solvency / long term solvency ratios,

Abans Electrical PLC short footings Solvency Ratios as follows,

Current Ratio = Current Assets / Current Liabilitiess

For 2013 = 1547035 / 1355743 = 1.14 times

For 2012 = 951146 / 735746 = 1.29 times

Quick Ratio = Share Capital / Current Liabilitiess

For 2013 = 4258800 / 1355743 = 3.14 times

For 212 = 122,850, 000/ 735740 = 166 times

Abans Electrical PLCLong Term Solvency Ratios as follows,

Depth Equity = Total Liabilities / Total Share holders’ equity

For 2013 = 1437402 / 551,055 = 2.60 times

For 2012 = 778935 / 429,967 = 1.81 times

Leverage ratio = Total Assets / Total Share holders’ equity

For 2013 = 1988457 / 551,055 = 3.60 times

For 2012 = 1,208, 902 / 429,967 = 2.81 times

Compare with short term Solvency Ratios and Long term Solvency Ratios the shows Abans Electrical PLC has been able to keep really healthy solvency border, which is 0.79 times an addition comparison to old twelvemonth.

8. Market base Ratio Analysis

Market base ratio Analysis means primary focal point on public presentation and value of the company portions in stock market. Below table represent a comprehensive sum-up of all market base ratios of Abans Electrical PLC,

Given the below tabular array shows a positive growing during the finicky twelvemonth 2011, further we can see Abans Electrical PLC have put to deathing set goal’s and strategic aims are met will assail more and more investors.

Beginning: Statement of Comprehensive Income For the Year Ended 31st March 2013

9. Recommendation and Decision

Profitability – Abans Electrical PLC shown 14.43 % addition on Gaining per Share and Comprehensive income for the twelvemonth incremental by 61,429,945 which dual income comparison with old twelvemonth, this records company is traveling frontward solid growing under bluish ocean scheme gaining supreme profitableness, below table explain by recommendation supported by Numberss,

Beginning: Statement of Comprehensive Income For the Year Ended 31st March 2013

Market Ranking

How to go on the accomplishment in the coming fiscal twelvemonth is due to debut of new merchandise fabrication and part of the Service Division which has enhanced the portion

value to interest holders and provided an chance to the company for enlargement into new lines of industry. Despite planetary and domestic challenges, the company has introduced merchandises of universe renowned trade names to increase gross and heighten client assurance. The direction continuously negotiates footings and conditions with providers in order to convey down costs and be competitory in pricing while keeping high criterions of

quality, this should be cardinal Abans Electrical should keep to hold a border over rivals

Financial hazard direction

However the negative side to notice is the chief factors influence the fiscal hazard of the organisation links with its recognition hazard and market hazard. Under the market, hazard, involvement rate hazard and exchange rate hazard are outstanding. Credit hazard of the organisation has been mitigated with the rating of proper recognition term for recognition worthy clients and obtaining extended recognition footings with provider. The frequent alterations in involvement rates are negotiated in line with the intended cost of capital of the organisation. Exchange rates are managed with proper dialogue and absorbed to be construction in progress

In decision Abans Electrical PLC is a comprehensive public presentation driven company make supreme profitableness to be one measure in front than rival to endeavor for market leading among the local rivals and it should good feeling pull new investors / new portion holders to bringing greater return on portions purchase.

Mentions

Abans Group, Profile ( 2013 ) available at hypertext transfer protocol: //www.abansgroup.com Accessed on 24 May 2014

Annual Report of 2013/2-13 Abans Electrical PLC ( A transcript submitted along with the assignment )

1|Page

Leave a Reply

Your email address will not be published. Required fields are marked *