5.

1 P & L Account
Comparative Statement of Profit & Loss for the year ended 31 ST March,
2018 to 31ST March 2022

As At As At As At As At As At
PARTICULARS
31.03.2019 31.03.2020 31.03.2021 31.03.2022 31.03.2023
INR INR INR INR INR

1) Revenue From
715,780,657 927,854,760 982,332,704 1,164,300,000 1,429,700,000
Operation

2) Other Income 10,674,049 3,602,298 2,928,430 2,400,000 1,200,000

3) Total Revenue
726,454,706 931,457,058 985,261,134 11,667,000,000 1,430,900,000
(1+2)
4) Expenses

Cost of Material
424,097,382 602,924,959 662,654,449 763,700,000 974,400,000
Consumed

Changes in
Inventory of (51,979,829) (34,512,783) (12,100,000) (49,300,000)
Finished Goods 15,992,156

Employee Benefit
46,500,337 53,702,593 50,801,545 57,200,000 62,500,000
Expenses

Finance Costs 20,339,275 22,023,549 25,859,463 28,700,000 34,100,000

Depreciation 22,801,171 24,311,097 25,932,173 27,300,000 28,100,000

Other Expenses 215,316,390 272,668,596 239,306,093 280,100,000 364,000,000

Total Expenses 713,062,400 923,650,965 970,040,940 1,144,900,000 1,413,800,000

5) Profit before
Exceptional Item 13,392,306 7,806,093 15,220,194 12,811,900,000 17,100,000
and Tax (3+4)

105
6) Exceptional
- 110,125 67,259 - -
Item

7) Profit before
13,392,306 7,695,968 15,152,935 12,811,900,000 17,100,000
Tax (5-6)
8) Tax Expenses-
I. Current Tax 2,540,495 1,190,914 2,688,879 4,100,000 4,500,000

II. MAT Credit

2,540,495 (1,190,914) (2,688,879) - -
Availed

III. Deferred Tax 4,576,277 4,167,615 1,509,325 3,700,000 5,00,000

IV. Prior Period
- - 423,007 -
Tax

4,576,277 4,167,615 1,932,332 7,800,000 50,00,000

9) Profit for the

period from
8,816,029 3,528,352 13,220,603 12,807,763,000 12,100,000
continuing
Operations (7-8)
Earing Per Equity
Share of face
Value of Rs. 10/-
Basic 0.36 0.14 - 0.56 0.56
Diluted 0.00 0.00 0.53 0.56 0.00
Significant
Accounting 0.00
Policies

Table 5.1 Profit and Loss account

106
5.2 Balance Sheet
Balance Sheet as at 31st March, 2018 to 31st March, 2022

As At As At As At As At As At
Particular
31.03.2019 31.03.2020 31.03.2021 31.03.2022 31.03.2023
INR INR INR INR INR
EQUTITY
AND
LIABILITIES
Shareholder’s
Funds
Share Capital 248,000,000 248,000,000 248,000,000 248,000,000 248,000,000
Reserves
352,771,259 356,100,629 369,321,232 384,900,000 396,900,000
&Surplus
600,771,259
604,100,629 617,321,232 632,900,000 644,900,000

Non – Current
Liabilities
Long Term
21,714,578 51,384,032 71,112,212 128,300,000 112,700,000
Borrowings
Deferred Tax
20,735,773 22,245,098 26,800,000 27,300,000
Liabilities (Net) 16,568,158
Other Long-
1,047,611 747,611 747,611 - -
Term Liabilities
Long Term
1,812,934 2,572,344 3,555,817 2,500,000 3,500,000
Provisions

41,143,281 75,439,760 97,660,738 157,600,000 143,500,000

Current
Liabilities
Short Term
136,148,914 138,175,254 244,160,079 244,100,000 272,400,000
Borrowings
Trade Payables 90,855,328 123,930,149 99,556,888 80,700,000 106,400,000
Other Current
58,461,005 73,628,845 64,818,630 12,700,000 27,300,000
Liabilities

Short Term
- - 2,221,658,09 2,100,000 5,00,000
Provisions
Other Financial
- - 25,100,000 25,400,000
Liability -

285,465,247 335,734,248 410,757,255 364,700,000 432,000,000

Total 927,379,787 1,015,274,637 1,125,739,225 1,155,200,000 1,220,400,000

ASSETS
Non – Current
Assets

107
 Fixed Assets

Tangible Assets 298,337,007 329,077,138 353,016,265 325,700,000 320,100,000

Capital Work in
6,196,742 6,196,742 6,196,742 300,000 3,00,000
Progress
Intangible
Assets Under 635,032 629,397 429,181 300,000 2,00,000
Development
Right to use
- - - 5,900,000 5,80,000
assets
Long Term
Loans & 18,620,995 21,309,874 1,700,000 16,00,000
21,505,655
Advances
Non – Current
10,217,749 7,118,290 7,414,140 15,000,000 13,400,000
Investment

Other financial
- - - 3,800,000 40,00,000
Asset

336,892,185 361,642,562 388,366,202 352,700,000 345,400,000

Current Assets
Inventories 361,347,633 466,864,632 563,816,084 622,900,000 624,800,000
Trade
210,839,767 174,101,565 159,138,153 153,600,000 224,500,000
Receivables

Cash & Bank

6,932,325 4,069,399 6,528,056 3,800,000 1,200,000
Balance
Short term
Loans & 5,942,231 3,864,113 3,207,766 800,000 6,00,000
Advances
Other Current
5,425,646 4,732,366 4,682,963 10,800,000 1,62,00,000
Assets

Other financial
- - - 10,600,000 77,00,000
Asset

590,487,601 653,632,075 737,373,023 802,500,000 875,000,000

Total 927,379,787 1,015,274,637 1,125,739,225 1,155,200,000 12,20,400,000

Table 5.2 Balance Sheet

108
5.3 Ratios & their interpretation
A financial ratio is used to calculate a company's financial status or production against
other firms. It is a tool used by investors to analyse and gain information about the
finance of a company's history or the entire business sector.

5.3.1 Gross Profit Ratio:

Gross Profit Margin Ratio, sometimes also referred to as gross margin, is a type of
profitability ratio. It helps to measure how much profit a company makes from the sale
of goods and services after deducting the direct costs. In simple words, it is a simple
metric to measure the company’s profitability. Also, it helps to evaluate how efficiently
the company is using its labour and raw materials during the production process.

Formula:

𝐺𝑟𝑜𝑠𝑠 𝑃𝑟𝑜𝑓𝑖𝑡
𝐺𝑟𝑜𝑠𝑠 𝑃𝑟𝑜𝑓𝑖𝑡 𝑅𝑎𝑡𝑖𝑜 = × 100
𝑅𝑒𝑣𝑒𝑛𝑢𝑒 𝑓𝑟𝑜𝑚 𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑜𝑛𝑠

Calculation of Ratio:

Year Gross Profit Ratio Change in Percentage

291683275
× 100
2019 715780657 -------
= 40.57%

324929801
× 100 (-13.68%)
927854760
2020
= 35.02%

319678255
× 100 (-7.08%)
982332704
2021
= 32.54%

109
 400600000
× 100
2022 116430000 (5.74%)
=34.41%

455300000
× 100
2023 1429700000 (-7.46%)
=31.84%

Table 5.3 Gross Profit Ratio

Gross Profit Ratio

45.00%

40.00%

35.00%

30.00%

25.00%

20.00%

15.00%

10.00%

5.00%

0.00%
2019 2020 2021 2022 2023

Graph 5.1 Gross Profit Ratio

Interpretation:
Euro India Fresh Foods Ltd had Gross Profit Ratio of 40.57% in 2019 which went down
by (-13.68%) to 35.02% and again decrease by (-7.08%) to 32.54% in 2021. There was
a decline in the Gross Profit Ratio of the company which indicated that the company
making less profit per product. But the ratio went up by 5.74% to 34.41% in 2022
suggesting that the company was generating more profit per product. But again, it
decreased by (-7.46%) to 31.84%.

110
5.3.2 Net Profit Ratio:

The net profit percentage is the ratio of after-tax profits to net sales. It reveals the
remaining profit after all costs of production, administration, and financing have been
deducted from sales, and income taxes recognized. As such, it is one of the best
measures of the overall results of a firm, especially when combined with an evaluation
of how well it is using its working capital.
The measure is commonly reported on a trend line, to judge performance over time. It
is also used to compare the results of a business with its competitors.

Formula:
𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡 𝑎𝑓𝑡𝑒𝑟 𝑇𝑎𝑥
𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡 𝑅𝑎𝑡𝑖𝑜 = × 100
𝑅𝑒𝑣𝑒𝑛𝑢𝑒 𝑓𝑟𝑜𝑚 𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑜𝑛𝑠

Calculation of Ratio:

Year Net Profit Ratio Change in Percentage

8816029
× 100
2019 715780657 -------
=1.23%

3528352
× 100
927854760
2020 (-69.11%)
= 0.38%

13220603
× 100
982332704 (255.26%)
2021
= 1.35%

111
 14000000
× 100
2022 1164300000 (-11.11%)
=1.20%

12100000
× 100
2023 1429700000 (-30%)
=0.84%

Table 5.4 Net Profit Ratio

Net Profit Ratio

1.60%

1.40%

1.20%

1.00%

0.80%

0.60%

0.40%

0.20%

0.00%
2019 2020 2021 2022 2023

Graph 5.2 Net Profit Ratio

Interpretation:
Euro India Fresh Foods Ltd had Net Profit Ratio in the year 2019 the ratio was 0.38%
which increase in next two years and after that in 2023 it declined by 0.84%. which can
be seen in the Change in Percentage

5.3.3 Current Ratio:

The current ratio is a liquidity ratio that measures whether a firm has enough resources
to meet its short-term obligations.

112
In general, investors look for a company with a current ratio of 2:1, meaning current
assets twice as large as current liabilities. A current ratio less than one indicates the
company might have problems meeting short-term financial obligations.

Formula:

𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡𝑠
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑅𝑎𝑡𝑖𝑜 =
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠

Calculation of Ratio:

Year Current Ratio Change in Percentage

590538857
2019 285465447 -----
= 2.06:1

653632075
335734248
2020 (-5.33%)
= 1.95:1

737373023
410757255
2021 (-8.20%)
= 1.79:1

802500000
2022 364800000 (22.90%)
= 2.20:1

875000000
2023 432000000 (-8.18%)
= 2.02:1

113
 Table 5.5 Current Ratio

Current Ratio
2.5

1.5

0.5

0
2019 2020 2021 2022 2023

Graph 5.3 Current Ratio

Interpretation:
EURO India Fresh Food Ltd had current ratio of 2.06:1 in the year 2019 and by the
passing year 2020 the current ratio decreased by (5.83%) to 1.94:1 it means the
company indicates that the proportion of current liabilities against current assets are
more. But again, in the year 2021 the current ratio decreased by (7.73%) to 1.79:1.
And then in 2022 the ratio increased by 22.9% to 2.20:1. And again in 2023 the ratio
decreased by (8.18%) to 2.02:1.

5.3.4 Debt to Equity Ratio:

The Debt-to-Equity ratio (also called the “debt-equity ratio”, “risk ratio”, or “gearing”),
is a leverage ratio that calculates the weight of total debt and financial liabilities against
total shareholders’ equity. Unlike the debt-assets ratio which uses total assets as a
denominator, the D/E Ratio uses total equity. This ratio highlights how a
company’s capital structure is tilted either toward debt or equity financing.

Formula:

114
 𝐷𝑒𝑏𝑡
𝐷𝑒𝑏𝑡 𝑡𝑜 𝐸𝑞𝑢𝑖𝑡𝑦 𝑅𝑎𝑡𝑖𝑜 =
𝐸𝑞𝑢𝑖𝑡𝑦

Calculation of Ratio:

Year Debt to Equity Ratio Change in Percentage

23527512
2019 600771259 -------
= 0.03

53956376
604100629
2020 (200%)
= 0.09

74668029
617321232 (33.33%)
2021
= 0.12

130800000
2022 632900000 (75%)
= 0.21

116200000
2023 644900000 (14.28%)
= 0.18

Table 5.6 Debt to Equity Ratio

115
 Debt to Equity Ratio
0.25

0.2

0.15

0.1

0.05

0
2019 2020 2021 2022 2023

Graph 5.4 Debt to Equity Ratio

Interpretation:
Euro India Fresh Foods Ltd had Debt to Equity Ratio in the year 2019 the ratio was
0.03 which increase in next three years and after that in 2023 it declined by 0.18 which
can be seen in the Change in Percentage.

5.3.5 Proprietary Ratio:

The proprietary ratio (also known as the equity ratio) is the proportion of shareholders'
equity to total assets, and as such provides a rough estimate of the amount of
capitalization currently used to support a business.

Formula:

𝑆ℎ𝑎𝑟𝑒ℎ𝑜𝑙𝑑𝑒𝑟 ′ 𝑠 𝐹𝑢𝑛𝑑𝑠
𝑃𝑟𝑜𝑝𝑟𝑖𝑒𝑡𝑎𝑟𝑦 𝑅𝑎𝑡𝑖𝑜 =
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠

116
Calculation of Ratio:

Year Proprietary Ratio Change in Percentage

600771259
2019 927379787 --------
= 0.64

604100629
1015274637 (-7.81%)
2020
= 0.59

617321232
1125739225
2021 (-8.47%)
= 0.54

632900000
2022 1155200000 (0%)
=0.547

644900000
2023 1220400000 (-3.70%)
=0.52

Table 5.7 Proprietary Ratio

117
 Chart Title
0.7

0.6

0.5

0.4

0.3

0.2

0.1

0
2019 2020 2021 2022 2023

Graph 5.5 Proprietary Ratio

Interpretation
Euro India Fresh Food Ltd had a Proprietary ratio in the year 2019 the ratio was 0.64
which declined to 0.59 in the year 2020 and decline till 2023 it declined by 0.52
which can be seen in the change in percentage.

5.3.6 Debtor Turnover Ratio:

The Debtors Turnover Ratio, also known as the Accounts Receivable Turnover Ratio,
is a financial metric that measures a company's efficiency in collecting its accounts
receivable.

Formula:

Net Credit Sales

Debtors Turnover Ratio =
Average Accounts Receivable

Calculation of Ratio:

Year Debtor Turnover Ratio Change in Percentage

118
 726454706
2019 210839767 -----
= 3.44

931457058
174101565
2020 (54.94%)
= 5.33

985261134
159138153
2021 (16.13%)
= 6.19

1166700000
2022 153600000 (22.61%)
= 7.59

1430900000
2023 224500000 (-16.07%)
= 6.37

Table 5.8 Debtor Turnover Ratio

Debtor Turnover Ratio

8

0
2019 2020 2021 2022 2023

Graph 5.6 Debtor Turnover Ratio

119
Interpretation:
Euro India Fresh Foods Ltd had Debtor Turnover Ratio in the year 2019 the ratio was
3.44 whichincrease till 2022 but in 2023 it declined by 6.37. which can be seen in the
Change in Percentage.

5.3.7 Fixed assets to shareholder Ratio:

The Fixed Asset to Shareholders' Equity Ratio, also known as the Fixed Asset to Net
Worth Ratio, measures a company's investment in fixed assets compared to its
shareholders' equity.

Formula:

𝐹𝑖𝑥𝑒𝑑 𝐴𝑠𝑠𝑒𝑡𝑠
Fixed assets to shareholder Ratio =
Shareholder ′ s Equity

Calculation of Ratio:

Fixed Assets to
Year Change in Percentage
Shareholder Ratio

336892185
2019 305022354 -------
= 1.10

361642562
317897827 (2.72%)
2020
= 1.13

388366202
326615768 (3.82%)
2021
= 1.18

352700000
2022 437800000 (-31.35%)
=0.81

120
 345400000
2023 443000000 (-4.93%)
=0.77

Table 5.9 Fixed Assets to shareholder Ratio

Fixed Assets to Shareholder Ratio

1.4

1.2

0.8

0.6

0.4

0.2

0
2019 2020 2021 2022 2023

Graph 5.7 Fixed Assets to Shareholder Ratio

Interpretation:
Euro India Fresh Foods Ltd had Fixed asset to shareholder Ratio in the year 2019 the
ratio was 1.10 which increase till 2021 and after that in 2022 decline by 0.81 and in
2023 decline by 0.77 which can be seen in the Change in Percentage

5.3.8 Return on Equity Share Ratio:

The Return on Equity (ROE) ratio measures a company's profitability from

shareholders' perspective, calculating the return generated by shareholders' equity.

Formula:

𝑃𝑟𝑜𝑓𝑖𝑡 𝑎𝑓𝑡𝑒𝑟 𝑡𝑎𝑥

Return on Equity Share Ratio =
Shareholder ′ s Equity

121
Calculation of Ratio:

Return on Equity Share

Year Change in Percentage
Ratio

8816029
2019 305022354 -------
= 0.02

3528352
317897827 (-50%)
2020
= 0.01

13220603
326615768 (300%)
2021
= 0.04

128077630
2022 437800000 (71%)
= 2.9

12100000
2023 443000000 (-99.07%)
=0.027

Table 5.10 Return on Equity Share Ratio

122
 Return on Equity Share Ratio
3.5

2.5

1.5

0.5

0
2019 2020 2021 2022 2023

Graph 5.8 Return On Equity Share ratio

Interpretation:
Euro India Fresh Foods Ltd had Return on Equity Share Ratio in the year 2019 the ratio
was 0.02 which declined in 2020 and after that increased till 2022and in 2023 it declined
by 0.027. which can be seen in the Change in Percentage.

5.3.9 Fixed Assets to total assets Ratio:

The Fixed Assets to Total Assets Ratio measures the proportion of fixed assets in a
company's total asset base. This ratio indicates the extent to which a company has
invested in fixed assets, which can impact its liquidity, flexibility, and ability to respond
to changes in the market.

Formula:

𝐹𝑖𝑥𝑒𝑑 𝐴𝑠𝑠𝑒𝑡𝑠
Fixed assets to total assets Ratio =
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠

123
Calculation of Ratio:

Fixed asset to total asset

Year Change in Percentage
ratio

336892185
2019 590487601 ------
= 0.57

361642562
653632075 (-3.50%)
2020
= 0.55

388366202
737373023 (-3.64%)
2021
= 0.53

352700000
2022 802500000 (-18.86%)
=0.43

345400000
2023 875000000 (-9.30)
= 0.39

Table 5.11 Fixed Assets to Total assets Ratio

124
 Fixed Assest to Total Assets Ratio
0.6

0.5

0.4

0.3

0.2

0.1

0
2019 2020 2021 2022 2023

Graph 5.9 Fixed Assets to total Assets ratio

Interpretation:
Euro India Fresh Foods Ltd had Fixed assets to total assets Ratio in the year 2019 the
ratio was 0.57 which decrease and decrease till 2023 it declined by 0.39 which can be
seen in the Change in Percentage

10. Quick Ratio:

The quick ratio measures a company's ability to meet its short-term obligations with its
most liquid assets and therefore excludes inventories from its current assets. It is also
known as the acid-test.

When a company has a quick ratio of less than 1, it has no liquid assets to pay its current
liabilities and should be treated with caution.

Formula:

𝑄𝑢𝑖𝑐𝑘 𝐴𝑠𝑠𝑒𝑡𝑠
𝑄𝑢𝑖𝑐𝑘 𝑅𝑎𝑡𝑖𝑜 =
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠

125
Calculation of Ratio:

Year Quick Ratio Change in

percentage

229139968
2019 285465247 ------
= 0.80

186765342
2020 335734248 (-30%)
= 0.56

173554838
2021 410757255 (-25%)
= 0.42

179597899
2022 364000000 (16.67%)
=0.49

2520200000
2023 432000000 (18.36%)
= 0.58

Table 5.12 Quick Ratio

126
 Quick Ratio
0.9

0.8

0.7

0.6

0.5

0.4

0.3

0.2

0.1

0
2019 2020 2021 2022 2023

Graph 5.10 Quick Ratio

Interpretation:

EURO India Fresh Foods Ltd. had Quick Ratio of 0.56:1 in 2020, by (-25%) to 0.42:1
in 2021. This ratio indicates that the company has decreasing liquid assets and that the
company had more debts than previous year. Then it went up by 16.67% to 0.49:1 in
2022 suggesting that the company has paid some its debts.

5.4 Financial Statement Analysis

Interpretation of Cash Flow Statement of EURO India Fresh Foods Ltd.

➤ Year ended 31 march 2019

At the end of this year, the total cash inflow from company's business operations Rs.
46,955,263 and cash outflow from investing is Rs. 1,094,691 and cash outflow of Rs.
41,472,404 in its financing activity which result in total net increase of Rs. 4,388,168
in its cash and cash equivalent after which closing balance of cash is Rs.6,932,325.

➤ Year ended 31st march 2020

At the end of this year, the total cash inflow from company's business operations Rs.
39,242,747 and cash outflow from investing activity is Rs. 49,451,576 and cash inflow

127
of Rs. 7,345,904 in its financing activity which result in total net decreased of Rs.
2,862,925 in its cash and cash equivalent after which closing balance of cash is
Rs.4,069,399.

Company had a reduction in cash inflow from its business operation comparative last
year and significant increase in cash outflow in investing activity and company had
cash inflow from outflow for last 2 year. The closing balance of cash has reduced
compare to last year.

➤ Year ended 31 march 2021

At the end of this year, the total cash inflow from company's business operations Rs.
57,926,460 and cash outflow of Rs. 40,336,520 from investing activity and cash
outflow of Rs. 6,131,283from financing activity which result in total net increase of Rs.
2,458,657 in cash and cash equivalent after which the closing balance of cash and cash
equivalent is Rs. 9,390,982.

Company had improvement in cash inflow in business operation compared to last year
and significant increase in cash inflow in investing activity compared to last year's
outflow. Cash outflow in financial activity closing balance of cash and cash equivalent
is highest in 4 years.

➤ Year ended 31st march 2022

At the end of this year, the total cash outflow from company's business operation is Rs.
316 lakh and cash inflow of Rs. 11 lakhs from its investing activity Rs. 277 lakhs Which
in total will Result in net decrease in cash of Rs. 28 lakhs. After which closing balance
of cash and cash equivalent is Rs. 38 lakhs.

Company had a Negative cash flow compared inflow and reduction is cash inflow from
investing activities compared to last year. Company has highest cash inflow in last 5
years and also closing balance of cash and cash equivalents is reduces in respect of
precious year.

128
➤ Year ended 31st march 2023

At the end of this year, the total cash inflow from company's business operations Rs.727
lakhs and cash outflow from investing activity is Rs. 251 lakhs and cash outflow of Rs.
502 lakhs in its financing activity which result in total net decrease of Rs. 26 lakhs in
its cash and cash equivalent after which closing balance of cash is Rs.12 lakhs.

5.5 Accounting Procedure

An accounting standard is a common set of principles, standards, and procedures that
define the basis of financial accounting policies and practices.

Accounting standards improve the transparency of financial reporting in all

countries. They specify when and how economic events are to be recognized,
measured, and displayed. External entities, such as banks, investors, and regulatory
agencies, rely on accounting standards to ensure relevant and accurate information is
provided about the entity. These technical pronouncements have ensured transparency
in reporting and set the boundaries for financial reporting measures.

EURO India Fresh Foods Ltd. follows the Indian Accounting Standards (Ind AS), as
notified under section 133 of the Companies Act 2013, have been formulated keeping
the Indian economic & legal environment in view and with a view to converge with
IFRS Standards, as issued by and copyright of which is held by the IFRS Foundation.

129