Income statement-balance sheet and cash flow, Finance Basics

Looking at the income statement, balance sheet and cash flow statement of the company and relating it with the non financial factors, I have the important observations as below:-

1.  The organization is in a quite comfortable zone with increasing revenue from the previous year in both of its important segments. The revenue through sale of food and beverages as well as revenue form room rents, restaurants and banquets grown by more than 18% during the year.

2.  The other income of the company comes mainly from dividend and exchange gain. Exchange is properly managed by the organization and the company has a good earning from dividend, which depends upon the performance of the companies in which we invested.

3.  The company earns a Gross Profit of more than 70% and a net profit of more than 25%, which is quite good in its business.

4.  The organization has repaid its loan by more than $ 303 to reduce its loan burden and for effective utilization of available cash balance.

5.  During the year we received money through issue of equity shares as well as through issue of warrants worth $ 373 and $ 124 for financing our new facilities.

6.  We purchase more investments during the year compared with our sale. We manage our finances best in this way.

7.  The current asset and current liability position of the company has been changed during 2012, because of reduction in the cash balance. Loans and advances paid also reduced by more than 25% during the year. We can manage any shortfall in cash through bank overdraft if needed in days to come.

8.  On an overall basis, the performance of the organization is very good in the recent past and we hope the same will continue in longer future.

Posted Date: 3/9/2013 1:08:34 AM | Location : United States







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