Bombay dyeing

download Bombay dyeing

If you can't read please download the document

description

A case on bombay dyeing

Transcript of Bombay dyeing

PROJECT REPORT Financial Statement Analysis

PROJECT REPORTFinancial Statement Analysis

GROUP 5

Aarushi Jain211002Aastha Arora211005Anuj Agrawal211024Apurv Anand211031Hrishikesh Thakar211056Jagpreet Singh Arora211059

1PROJECT REPORT Financial Statement Analysis

Acknowledgement

A journey is easier when you travel together. Interdependence is certainly more valuable than independence. It is a pleasant aspect that we now have the opportunity to express our gratitude to acknowledge the assistance and guidance of the friends without whom the present project would not have been possible.

Even though words will not suffice, we take this opportunity to express our deepest thanks to Prof. Vandana Gupta for her guidance, untiring supervision, encouragement and cooperation that has correctly molded our analytical and managerial outlook.

2PROJECT REPORT Financial Statement Analysis

Table of Contents

Executive Summary.4Chapter 1: Introduction51.1Company Profile51.2Line Of Business51.3Board of directors61.4Shareholding Pattern6Chapter 2 Sales Mix82.1Analysis Of Sales Mix82.2Foreign Trade9Chapter 3 Analysis of Income Statement and Position Statement103.1Ratio Analysis103.2Trend Analysis173.3Peer Comparison20Chapter 4 Cash Flow analysis22Chapter 5 SWOT Analysis255.1Textiles255.2Polyester Staple Fabric265.3Realty27References..28

3PROJECT REPORT Financial Statement Analysis

Executive Summary

This report provides an analysis and evaluation of the current and prospective profitability, liquidity and financial stability of Bombay Dyeing And Manufacturing Co. Ltd. Methods of analysis include trend analysis, peer comparison and ratio analysis such as ratios such as Current and Quick ratios, Solvency and Debt ratios and operating profit margin ratios. Other calculations include rates of return on Shareholders Equity and Total Assets and earnings per share to name a few. We have also used the techniques of cash flow analysis and SWOT analysis.

Results of data analyzed show that all ratios are at par with the industry averages. In particular, comparative performance is good in the areas of profit margins, liquidity, credit control, and inventory management. Cash Flow Analysis reveals that the company has large differences in its profit figures and the cash position. Yet, the company is able to pay out dividends to its shareholders. SWOT analysis reveal that the company has a large number of opportunities for growth in all the three sectors of operations.

Thus the company has a very strong position in the market and is a market leader in the textile sector. The current position of the company is quite good as compared to its competitors and it also has a good promising future.

4PROJECT REPORT Financial Statement Analysis

Chapter 1: Introduction

Company Profile

The Bombay Dyeing and Manufacturing Company Limited was established in 1879. It is the flagship company of the Wadia Group and is engaged mainly into the business of Textiles.

Line Of Business

TEXTILES

Bombay Dyeing established as a single store brand in 1879, has now established significantly across categories such as stylish bed linen, premium bath linen, home furnishings, suiting and shirting. The entire range of products includes:

Bedding Range: Bed sheets, bed covers, quilts, duvet covers, dohars, bed in bag sets, blankets, pillow cases, cushion covers and shams

Bedding accessories: Cushions, pillows, duvets, comforters, diwan sets and bed dcor sets

Bath linen: Pool towels, bath towels, hand towels, face towels, bath robes and bath mats

Hotel linen: Twills, dobby weavers, satins, jacquards, high-thread-count-sheeting and satin fabrics

Industrial Fabrics: Microdot interlining, fabrics for shoe uppers, adhesives, abrasives and leather cloth

REALTY

Bombay Realty is a real estate and land development company that is a division of Bombay Dyeing. The company was created to develop and manage all lands owned by the Wadia Group. Bombay Realtys primary focus is to develop the 10,000 acres owned by the Wadia

Group into offices, hotels, service apartments, branded residences, hospitals, schools, and retail spaces. Bombay Realty is currently working on developing the Island City Center and the Wadia International Center which are mixed use projects located on prime real estate in India.

POLYESTER STAPLE FIBRE (PSF)

PSF is a substitute of cotton in the manufacturing of yarn. Bombay Dyeing ventured into this business in 2007. It manufactures micro fibers, semi dull / optically white / dope dyed black / hollow / super high tenacity and trilobal products.

5PROJECT REPORT Financial Statement Analysis

Board of Directors

The Board is headed by Mr. Nusli N. Wadia, Non-Executive Chairman, and is composed of eminent persons with considerable professional experience in diverse fields and comprises a majority of Non-Executive Directors. Over two thirds of the Board consists of Non-Executive Directors and of these, the majority are independent Directors. The details are given below:

S. NoNAMECATEGORY1Mr. Nusli N. Wadia (Chairman)Non-Executive/Promoter2Mr. Keshub MahindraIndependent3Mr. R. N. TataIndependent4Mr. R. A. ShahIndependent5Mr. S. S. KelkarIndependent6Mr.S. RagothamanIndependent7Mr. A. K. HirjeeIndependent8Mr. S. M. PaliaIndependent9Ms. Vinita BaliNon-Executive/Not independent10Mr. Ishaat HussainIndependent11Mr. Ness N. WadiaNon-Executive/Promoter12Mr. Jeh N. WadiaManaging Director/Promoter13Mr. Durgesh MehtaJt. Managing Director & CFO

1.4 Shareholding Pattern

Shareholding Pattern as on 31st March, 2012

No. of Shares%Promoter Group2,15,07,20452.07Insurance Companies22,74,8985.51Nationalized Banks38,7950.09Mutual Funds43,70,22810.58FIIs38,39,4419.29GDR Holders5,65,9451.37Others87,10,46921.09Total4,13,06,980100

6PROJECT REPORT Financial Statement Analysis

7PROJECT REPORT Financial Statement Analysis

Chapter 2: Sales Mix

2.1 Analysis of Sales Mix

The sales mix of the company comprises of revenues from textile, PSF and Realty. PSF makes the highest contribution to the sales mix, that is, about 60%. This is because the company has implemented first of its kind polymer to PSF technology used anywhere in the world.

SALES MIX

TURNOVER

TEXTILE

PSF

REALTY

2008-2009

1418 cr

334 cr

811 cr

273 cr

2009-2010

1732 cr

294 cr

867 cr

562 cr

2010-2011

2063 cr

399 cr

1418 cr

240 cr

2011-2012

2403 cr

439 cr

1381 cr

575 cr

3000

2500

2000

1500

1000

500

0 Realty

PSF

Textile

2008-092009-102010-112011-12

8PROJECT REPORT Financial Statement Analysis

2.2 Foreign Trade

Textile industry contributes nearly 14% of the total industrial production of the country and also contributes 3% to the GDP of the country. The country earns about 27% of its foreign exchange through textile export.

The company trades in Foreign Markets as well where it exports products to USA, UK and several other companies. The company also imports raw materials from other countries.

Also, the company had imported capital goods in the years 2006-07 and 2007-08.

EXPORTS:

PSF export market expanded but the margins continued to remain under pressure. Textile exports were adversely impacted by intense competition coupled with low demand in the western markets. New export teams in Textile division are working on to expand the customer base and also revive the old customers.

Total foreign exchange used and earned

ParticularsIn croresTotal foreign exchange used855.34Total foreign exchange earnings246.52

IMPORTS:

Information regarding technology imported (during last 5 years):

Bombay dyeing imported technology of INVISTA Performance Technologies, U.S.A. for PSF manufacture with PTA feedstock in the year 2006 and the technology is now been fully absorbed by the company. The CIF value of these is about 0.68 crores in 2011-12.

As regards the imports of raw material and other material, the CIF value for the year 2011-12 is 831.33 crores for raw materials and 14.62 crores for stores, spare parts and catalysts.

9PROJECT REPORT Financial Statement Analysis

Chapter 3: Analysis of Position statement and Income Statement

Ratio Analysis

LIQUIDITY RATIOS

Liquidity ratios measure the short term solvency, i.e. the firms ability to pay its current dues

CURRENT RATIO

Mar ' 09Mar ' 10Mar ' 11Mar ' 12Current Ratio0.740.861.811.61

The current ratio of the company has an increasing trend. It has increases from 0.74:1 to 1.61:1 in the last four years. This company is moving towards the ideal ratio of 2:1. This shows that the company will be able to meet its current liabilities on time and has adequate working capital.

QUICK RATIO

Mar ' 09Mar ' 10Mar ' 11Mar ' 12Quick Ratio2.272.91.50.97

Quick ratio has a decreasing trend. It has decreased from 2.27:1 in Mar 2009 to 0.97 in Mar 2012. It has moved towards the ideal ratio of 1:1

10PROJECT REPORT Financial Statement Analysis

INVENTORY HOLDING PERIOD

Mar ' 09Mar ' 10Mar ' 11Mar ' 12Inventory Turnover Ratio11.7614.129.791.52Inventory Holding Period (days)31.0425.8537.28240.13

Inventory holding period has increased from 31 days in Mar 2009 to 240 days in Mar 2012. This indicates that the company is holding more inventory compared to previous years.

SOLVENCY RATIOS

Solvency ratios depict the capital structure of the company. It shows the different sources of finance that the company has employed.

DEBT-EQUITY RATIO

Mar ' 09Mar ' 10Mar ' 11Mar ' 12Debt Equity Ratio1.284.640.440.28

The D/E ratio of the company has decreased from 10.13:1 in Mar 2009 to 0.46:1 in Mar 2012. This is due to the increase in Shareholders Funds.

11PROJECT REPORT Financial Statement Analysis

DEBT RATIO:

Mar ' 09Mar ' 10Mar ' 11Mar ' 12Debt Ratio82.2089.4052.3031..03

The debt ratio shows the ratio of total loans to total assets. The ratio increased in the year 2009-10 and declined thereafter due to low dependence on loans and more reliance on internal sources of finance.

Debt Ratio

100

80

60

40

Debt Ratio20

0

Mar ' 09Mar ' 10Mar ' 11Mar ' 12

INTEREST COVER

Mar ' 09Mar ' 10Mar ' 11Mar ' 12Interest Cover0.191.281.271.45

Interest Coverage Ratio determines the ease with which a company can pay interest expense on outstanding debt.

The company has a low interest coverage ratio of 1.45. This indicates that the company is having difficulties in generating the cash necessary to pay its interest obligations

12PROJECT REPORT Financial Statement Analysis

Interest Cover

1.6

1.4

1.2

1

0.8

0.6

Interest Cover

0.4

0.2

0

Mar ' 09Mar ' 10Mar ' 11Mar ' 12

PROFITABILITY RATIOS

Operating Profit Margin

Mar ' 09Mar ' 10Mar ' 11Mar ' 12Operating Profit Margin12.0811.8116.860.46

This ratio is used to measure a company's pricing strategy and operating efficiency. Operating margin is a measurement of what proportion of a company's revenue is left over after paying for variable costs of production such as wages, raw materials, etc. A healthy operating margin is required for a company to be able to pay for its fixed costs, such as interest on debt.

Here the increasing firms margin depicts the higher earnings per rupees of sales. Thus companys performance has been improving over the years.

13PROJECT REPORT Financial Statement Analysis

Operating Profit Margin

18

16

14

12

10

8

operating profit

6

margin

4

2

0

Mar ' 09Mar ' 10Mar ' 11Mar ' 12

Gross Profit Margin

Mar ' 09Mar ' 10Mar ' 11Mar ' 12Gross Profit9.328.5713.280.46

Gross profit margin serves as the source for paying additional expenses and future savings. It is used to assess a firm's financial health by revealing the proportion of money left over from revenues after accounting for the cost of goods sold.

The firm has higher profit margin thus works efficiently over the years. The highest was during FY 10 in which the cost of goods sold was least during the 2009-2010. Also the net profit was negative during year 2008-2009.

Gross Profit Margin

14

12

10

8

6

gross profit margin

4

2

0

Mar ' 09Mar ' 10Mar ' 11Mar ' 12

14PROJECT REPORT Financial Statement Analysis

Return on Assets

Mar ' 09Mar ' 10Mar ' 11Mar ' 12Return on Assets433.9279.5654.4743.36

An indicator of how profitable a company is relative to its total assets. ROA gives an idea as to how efficient management is at using its assets to generate earnings. The assets of the company are comprised of both debt and equity. Both of these types of financing are used to fund the operations of the company. The ROA figure gives investors an idea of how effectively the company is converting the money it has to invest into net income. The higher the ROA number, the better, because the company is earning more money on less investment.

Here the highest ROA for the FY 12 is due to the 20% increase in sales with respect to 14 percent increase in operating expenses compared with 16% increase in sales with respect to 17% increase in operating expenses.

Return On Assets500

450

400

350

300

250

200

return on assets150

100

50

0

Mar ' 09Mar ' 10Mar ' 11Mar ' 12

FINANCIAL RATIOS:

Dividends per Share

Mar ' 09Mar ' 10Mar ' 11Mar ' 12Dividend per share12.53.55

It measures the percentage of a company's net income that is given to shareholders in the form of dividends.

A higher dividend per share is ensuring a higher profitability margin for the firm who is returning back to the investors and shareholders and keeping the goodwill of the company over the years.

15PROJECT REPORT Financial Statement Analysis

Dividend Per Share

6

5

4

3

2

Dividend per share

1

0

Mar ' 09Mar ' 10Mar ' 11Mar ' 12

16PROJECT REPORT Financial Statement Analysis

3.2 Trend Analysis

Bombay Dyeing and Manufacturing Company

Mar'12

Mar'11

Mar'10

Mar'09

Sources Of Funds

Total Share Capital

41.3107.040.5105.038.6100.038.6100.0

Equity Share Capital41.3107.040.5105.038.6100.038.6100.0

Share Application

0.0100.026.8100.00.0100.00.0100.0

Money

Preference Share0.0100.00.0100.00.0100.00.0100.0

Capital

Reserves

1751.11344.4282.1216.6171.7131.9130.3100.0

Revaluation Reserves0.00.0778.8386.40.00.0201.6100.0

Net worth

1792.4483.91128.2304.6210.456.8370.4100.0

Secured Loans760.750.71146.576.51612.0107.51499.0100.0

Unsecured Loans

55.926.490.842.9163.177.0211.9100.0

Total Debt816.647.71237.372.31775.1103.81710.9100.0

Total Liabilities

2609.0125.42365.5113.71985.595.42081.3100.0

The loan funds have reduced by 52.3% from 2008-09 to 2011-12 and the reserves and surplus have increased by 1751.1% during the same period. The trend analysis of the liabilities side of the balance sheet shows that the company has reduced its dependence on external sources of finance and increased the use of internal sources of finance over the years.

Bombay Dyeing and Manufacturing Company

Mar 12

Mar'11

Mar'10

Mar'09

Application Of Funds

Gross Block1,271.8109.71,190.1102.61,183.4102.01,159.8100.0

Less: Accum.342.4191.6292.8163.8231.3129.4178.7100.0

Depreciation

Net Block929.494.7897.391.5952.297.1981.0100.0

Capital Work in102.046.6205.693.9208.495.2218.9100.0

Progress

Investments56.092.960.2100.060.2100.060.2100.0

Inventories1,549.7407.51,031.7271.3144.237.9380.3100.0

Sundry Debtors137.633.9203.550.1634.6156.3405.9100.0

Cash and Bank Balance33.3334.95.049.918.9189.510.0100.0

Total Current Assets1,720.6216.11,240.2155.8797.7100.2796.2100.0

Loans and Advances780.3303.2286.2111.2278.9108.3257.4100.0

Fixed Deposits0.00.016.114.115.013.2113.6100.0

17PROJECT REPORT Financial Statement Analysis

Total CA, Loans &2,501.0214.31,542.4132.11,091.693.51,167.2100.0Advances

Differed Credit0.0100.00.0100.00.0100.00.0100.0Current Liabilities947.1281.9316.594.2309.992.2335.9100.0

Provisions32.3281.423.5204.817.0148.311.5100.0Total CL & Provisions979.4281.9340.097.9326.994.1347.4100.0

Net Current Assets1,521.6185.61,202.4146.7764.793.3819.8100.0

Miscellaneous0.00.00.00.00.00.01.4100.0Expenses

Total Assets2,609.0125.42,365.5113.71,985.595.42,081.3100.0

The inventory level has increased by 307.5% from 2008-09 to 2011-12. Also there is a significant change in the cash position of the firm which shows an increase by 224. 9%. Except for these changes the structure of the company has remained more or less the same.

Bombay Dyeing and Manufacturing Company

Mar '12

Mar '11

Mar '10

Mar '09

INCOMES

Sales Turnover

2,348.06169.122,019.40145.451,707.84123.011,388.36100

Excise Duty

123.11277.52102.85231.8546.46104.7344.36100

Net Sales

2,224.95165.551,916.55142.601,661.38123.611,344.00100

Other Income

50.87-342.7936.12-243.402.2-14.82-14.84100

Stock Adjustments

518.1112277.4947.491125.36-2.52-59.724.22100

Total Income

2,793.93209.542,000.16150.011,661.06124.581,333.38100

EXPENDITURE

Raw Materials

1,421.88174.381,169.49143.42822.33100.85815.41100

Power & Fuel Cost

103.93110.4585.6891.0582.8788.0794.1100

Employee Cost

83.48162.4860.02116.8249.7296.7751.38100

Other Manufacturing

744.44417.78232.72130.60275.2154.44178.19100

Expenses

Selling and Admin Exp

00140.13132.94105.199.71105.41100

Miscellaneous Expenses

120.42298.5948.9121.2543.24107.2240.33100

Total Expenses

2,474.15192.571,736.94135.191,378.46107.291,284.82100

Operating Profit

268.91424.15227.1358.20280.4442.2763.4100

PBDIT

319.78658.53263.22542.05282.6581.9648.56100

Interest

180.5797.63174.0794.12200.7108.52184.95100

PBDT

139.21-102.0789.15-65.3681.9-60.05-136.39100

Depreciation

61.39110.1662.08111.3959.54106.8455.73100

Other Written Off

0000000100

18PROJECT REPORT Financial Statement Analysis

Profit Before Tax77.82-40.5127.07-14.0922.36-11.64-192.12100Extra-ordinary items-2.97-2.970.280.2800.000100

PBT (Post Extra-ord74.85-38.9627.35-14.2422.36-11.64-192.12100Items)

Tax15.51519.615.26515.693.77369.611.02100

Reported Net Profit59.35-30.5021.39-10.9918.42-9.46-194.62100Total Value Addition1,052.27224.17567.45120.89556.13118.47469.41100

Preference Dividend0000000100Equity Dividend20.66535.2314.19367.629.66250.263.86100

Corporate Dividend Tax3.36509.092.3348.481.6242.420.66100Per share data (annualised)

100

Shares in issue (lakhs)413.07106.97405.47105.00386.17100.00386.17100Earnings Per Share (Rs)14.37-28.515.28-10.484.77-9.46-50.4100Equity Dividend (%)50500353502525010100Book Value (Rs)433.92992.2779.56181.9354.47124.5643.73100

The trend analysis of income side of the income statement shows that the sales turnover of the company has increased by 69% from 2008-09 to 2011-12.this is a good sign for the shareholders. Income from other sources for the company has declined by 242%, thus the company is focusing on its main sources of revenue

The trend analysis of expenditure side of income statement shows that there has been an increase of 317% in other manufacturing expenses over the period.

The operating profit of the company has increased substantially by 324% and thus company has been paying higher dividends over the years.

19PROJECT REPORT Financial Statement Analysis

Financial RatiosBombayGrasimDCMCentury

Dyeing

Shriram

dividend per share522.50.45.5

operating profit per share65.1136.6717.5843.28net operating profit per share538.64538.87297.92520.16

earning per share14.37128.34-0.862.38

profitability ratios

operating profit margin12.0825.365.98.32

profit before interest and tax9.121.162.762.97gross profit margin9.3222.442.782.98

cash profit margin5.5821.933.366.03return on capital employed10.0414.485.863.18

return on net worth3.3112.93-1.151.86return on assets433.92992.1974.73204.08

return on long term funds11.2714.578.264.31

liquidity ratios

current ratio1.611.190.860.54

quick ratio0.970.810.810.49

solvency ratios

debt equity ratio0.460.071.31.8

long term debt equity ratio0.30.060.641.07interest coverage ratio1.4537.961.061.25

total debt to owners funds0.460.071.31.8financial charges coverage1.7941.842.043.16ratios

management efficiency ratios

inventory turnover ratio1.528.883.956.27debtors turnover ratio13.0511.129.3615.09

investments turnover ratio1.528.883.956.27fixed assets turonver ratio1.761.591.680.72

total assets turnover ratio0.850.511.740.91

20PROJECT REPORT Financial Statement Analysis

3.3 Peer Comparison

The peer comparison shows that the company is well aligned with its peer group of companies in terms of structure of the company. The companys liquidity position is meeting the industry norms and displays a good liquidity position. The profitability margins are also neither too high nor too low comparison to its peers. It earns a medium range of profit margins. The solvency position of the company is also confirming to the industry norms. The management efficiency ratios also reveal that the efficiency of management is satisfactory as far as its level of competition in the industry is concerned. However, it needs to fasten its inventory turnover ratio which is quite low as compared to it peers. This has also been observed as a weak area for the company as the SWOT analysis revealed that the company is yet to improve its Supply chain management.

21PROJECT REPORT Financial Statement Analysis

Chapter 4: Cash Flow Analysis

2011-12

Operating activities

Cash from operations show that there has been 81.5% decline as compared to the previous year. This can be mainly attributed to cash stuck in Trade receivables and loans and advances and other assets.

Investing activities

Cash used in investing activities has shown 88.7% decline on YOY comparison. This shows that relatively fewer amounts have been spent in acquiring fixed assets or making investments. There has been a decrease in the amount of fixed deposits placed with the banks.

Also, it is seen that the company has earned a marginal profit on its investments in both the years. We can say that the company might be involved in short term investment activities.

Financing activities

Cash used in financing activities has also shown a decline of 82% YOY. The co has sourced cash from borrowings, fixed deposits and demand loans & cash credit.

2010-11

Operating activities

There is a 635.66% increase in cash flow from operations. This can be attributed mainly to a decrease in the levels of inventory and less cash been stuck in trade and other receivables.

Investing activities

Cash used in investing activities has reduced by 63.42 % YOY. This is mainly due to inflows resulting from net inter-corporate deposits and sale of shares in subsidiary/joint venture.

Financing activities

There has been an increase of 292.3% in cash used in financing activities on account of fewer amounts of proceeds from borrowings and fixed deposits.

22PROJECT REPORT Financial Statement Analysis

2009-10

Operating activities

There is a YOY 701.6% increase in cash flows from operations majorly on account of revenue received from sales.

Investing activities

There is a decline in cash used in investing activities by 434.33% YOY. This can be attributed to no investments been made and negligible sale of investments as compared to the previous year.

Financing activities

There has been a 342.3% YOY decline in flows from financing activities leading to a cash outflow from financing activities mainly due to large scale repayment of borrowings and demand loans and cash credit.

2008-09

Operating activities

There is a decline in cash flows from operations by 83.08% YOY mainly due to low sales during the year.

Investing activities

Cash used in investing activities has declined by 99% YOY on account of less purchase of investments and fixed assets.

Financing activities

Cash flows from financing activities has decreased by 70.68% YOY due to comparatively less borrowings been made and higher interest expenses incurred.

23PROJECT REPORT Financial Statement Analysis

Particulars

Mar '12

Mar '11

Mar '10

Mar '09

Mar '08

Net Profit Before Tax74.8526.3722.19-193.6

18.01

Net Cash From Operating Activities

101.79

551.97

75.03

9.36

55.35

Net Cash (used in)/from Investing3.5531.51-12.45-2.33-251.93

Activities

Net Cash (used in)/from Financing

-103.78

-597.37

-152.27

62.82

214.28

Activities

Net (decrease)/increase In Cash1.56-13.89

-89.6969.8517.7

and Cash Equivalents

Opening Cash & Cash Equivalents

4.12

18.86

123.58

53.73

36.03

Closing Cash & Cash Equivalents5.684.9733.89123.58

53.73

The Cash Flows from Operating Activities have increased substantially in 2010-11 and the Cash used in financing activities has also increased substantially while the investing activities show a steady trend. Here, we analyze that the company has earned a lot of revenue in the year 2010-11 and thus repaid its loans to get rid of interest expenses and started relying more on internal sources of finance.

600

450

300

150

0

operating activities

investing activities

2008-092009-102010-112011-12

-150

financing activities

-300

-450

-600

-750

24

PROJECT REPORT Financial Statement Analysis

Chapter 5: SWOT Analysis

Textiles

Bombay dyeing is a market leader in the textile sector with more than 1000 design launches every year and a wide range of qualities in bath linen and enhanced focus on value addition and innovation.

The company has 9 flagship stores

300+ exclusive Franchise Stores

300+ Large Format store Counters

2000+ Multi Brand stores

The SWOT analysis for the textile sector reveals that the company is a well known brand in the textile industry which forms the strength of the company and the there is a bright future for the company in terms of growth. It only needs to improve its supply chain management system.

STRENGTHSWEAKNESS

Widest range of designsNeeds to improve Supply Chain

Widest range of price points fromManagement to

549- 10000 to cater to customer inreduce cycle time

every segment

strengthen quality of product

Long term sustainableSWOT ANALYSISreduce conversion costs

model

(textiles)

OPPURTUNITY

THREAT

Growth of organised sector in future

Increased disposable income of the middle class Can be subject to inflationary pressures

Levy of excise duty can impact demand

Cheap imports from China & duty free imports from Bangladesh

Within textile, Unorganised sector accounts for over 90%.

25PROJECT REPORT Financial Statement Analysis

5.2 Polyester staple Fibre

The PSF plant operates NGSSS (Next generation tipple Spinning Systems) systems since 2007, implemented by Invista Polyester Technologies and Chemtax International Inc, USA-technical expertise suppliers. This was the first of its kind polymer to PSF technology used anywhere in the world.

The plant maintains high safety standards and is built to exemplary environment and energy conservation standards.

The SWOT analysis reveals that the company is one of the most sought after brands for polyster. It is one of the three manufacturers of polyester fiber staple which is its greatest strength. Also, the Psf is cheaper as compared to cotton, thus beneficial for its growth. However, the company needs to expand its presence in markets to reap the potentials.

STRENGTHS

Implementation of first of its kind polymer to PSF technology used anywhere in the world.

High energy conservation technologies WEAKNESS

Presence only in big cities

Not doing enough to build brand equity

SWOT ANALYSIS

(Polyster) OPPURTUNITY THREAT

Low price as compared to cotton and other substitute fibres.

Continuous rising demand for textile products, demand for PSF will increase in long run Low cotton prices and high crude oil prices, the co. Can face severe cost pressures

Improved availabillity of cotton can affect demand adversely.

Govt policy in export of raw cotton could affect the co.s operations

26PROJECT REPORT Financial Statement Analysis

5.3 Realty

Bombay realty seeks to create mixed use developments that offer you the ability to LIVE.WORK.PLAY. all at one place.

They are developing properties which are gated communities, having private roads, advanced security and world class infrastructure. It is Built on the strong fundamentals of trust and quality, fulfilling the aspirations for an evolved lifestyle.

Bombay realty has announced two mixed use projects, which are presently under development. Bit these- the Island City Centre (ICC) and The Wadia international centre (WIC) are proposed to be built in line with our philosophy of LIVE.WORK.PLAY.

The SWOT analysis of the sector reveals that the scarcity of land in the City and increasing congestion on road as well as pressure on infrastructure will lead to higher demand for residential accommodation especially in Central Mumbai which is equidistant from the commercial hubs of South Mumbai and Bandra-Kurla Complex in North Mumbai. Thus there is a huge potential, however it does face some environmental and political threats in terms of strictness of authorities and increasing rate of interest in the Economy.

STRENGTHSWEAKNESS

Integrated mixed use developments within Mumbai gives a competitive edge

Aggressive investment in Brand building and consumer centric approach as diffrentiation strategy residential property prices has remained stagnant druing past 5 months

significant rise in interest rate on home loans

Commercial space demandfor both sale and leas remain weak

SWOT ANALYSIS

(Realty)

OPPURTUNITYTHREAT

Scarcity of land in city, increasing on road congestion and infrastructure inadequacy will lead to higher demand for residential accomodation Large no of new projects in vicinity leading to intense competition

controversies involving builders made authorities become even more strict

27PROJECT REPORT Financial Statement Analysis

References

www.investopedia.com

www.indiainfoline.com

www.bseindia.com

www.nse-india.com

www.bombaydyeing.com

Annual report 2011-12, Bombay Dyeing and Manufacturing Company Limited Annual report 2010-11, Bombay Dyeing and Manufacturing Company Limited Annual report 2009-10, Bombay Dyeing and Manufacturing Company Limited Annual report 2008-09, Bombay Dyeing and Manufacturing Company Limited

28