Analyse the performance of Rupa and Co for the year ending March 31, 2015 and 2014 with the help - Accountancy - Accounting Ratios

Question

Analyse the performance of Rupa and Co for the year
ending March 31, 2015 and 2014 with the help of information given
below by using accounting ratios:
 March 31,2015 March 31,2014
  â‚¹  â‚¹
Revenue from operations 75,00,000 60,00,000
Cost of revenue from operations 57,00,000 45,00,000
Administrative & selling exp 5,70,000 4,80,000
Depreciation on Plant & machinery 3,01,500 2,40,000
Depreciation on furniture  50,000 30,000
Share issue exp written off 10,000 10,000
Interest on long term debts 96,000 80,000
Provision for Taxation  1,37,700 1,00,000
 BALANCE SHEETS
 as at 31st March 2015 and 2014
Particulars  Note 31 3 2015 31 3 2014
  no
I EQUITY AND LIABILITIES :  â‚¹
â‚¹
Shareholder's Funds:
Share Capital  1 18,00,000 18,00,000
Reserve and Surplus  14,70,000 8,35,200
Non-Current Liabilities:
Long term borrowings  2 12,00,000 10,00,000
Current Liabilities:
Trade payables   8,22,300 5,04,800
Short term provision  3 1,37,700 1,00,000
 TOTAL  54,30,000 42,40,000
II ASSETS :
Non-Current Assets:
Fixed Assets  31,35,000 25,83,000
Investments   1,05,000 1,05,000
Other Non Current Assets 4 20,000 30,000
Current Assets:
Inventory   12,00,000 9,00,000
Trade Receivables  9,00,000 5,00,000
Cash & Cash Equivalents  60,000 1,12,000
Other Current Assets  5 10,000 10,000
 TOTAL 54,30,000 42,40,000

Neha Chopra · Accepted Answer

Dear Student

The project is of financial analysis, I would request you to solve
it by following the guidelines which are as follows , In case
however you face any doubt or difficulty please get back to us
,
So the steps are as follows - we have to firstly calculate various
accounting ratios like Net Profit Ratio , Gross profit ratio ,
Current Ratio ,Debt Equity ratio etc etc of both the years

After calculating these ratio's for both the years we have to
compare the ratios of both the years and based on this comparison
(Analysis) we have to draw conclusions

Like For E G
N P for Year 1 - 50%
N P for Year 2 - 40%

Conclusion : Net profit for year 1 has reduced by 10% as compared
to year 2 This may be due to Increase in Sales price or reduction
of expenses

Hope this helps
Please get back to us for any query
Keep posting
Regards