ICFAI Business School, Hyderabad

(Declared as Deemed-to-be university u/s 3 of the UGC Act 1956)

IBS Hyderabad-501203, Telangana, India

COURSE: FINANCIAL MANAGEMENT-II

FACULTY: DR. SAGAR REDDY ADAVELLI

A
Project Report on
BARTRONICS INDIA LTD.

GROUP - 8
Sr. No. Enrollment No. Name Seat No.
1 24BSPHH01C1318 Sonali Pradhan 25
2 24BSPHH01C0981 Priyanka Chaudhary 27
3 24BSPHH01C0393 Dhruv Agrawal 46
4 24BSPHH01C0623 Khushboo Daga 63
5 24BSPHH01C0760 Mehak Chaturvedi 79
 TABLE OF CONTENTS

SR.
NO. PARTIICULARS PG. NO.
1. COMPANY PROFILE 1

2. STATEMENT ANALYSIS 2-6

COMPARATIVE STATEMENT ANALYSIS 2-3

COMMON SIZE STATEMENT ANALYSIS 4-5

INDEX ANALYSIS 6

3. RATIO ANALYSIS 7-11

LIQUIDITY RATIO 7

CAPITAL STRUCTURE RATIO 8

PROFITABILITY RATIO 9

TURNOVER RATIO 10-11

4. CONCLUSION 11
 COMPANY PROFILE
Bartronics India was founded in 1990 by R.K. Mehta as Super Bartronics Private
Limited. It was converted into a public limited company in 1995 and renamed
Bartronics India Limited in 1996.
Bartronics is a leading IT services & business solution provider delivering cutting edge
technology solutions to enterprises. Bartronics is a listed company on the National
Stock Exchange and Bombay Stock Exchange in India. It was listed on NSE on January
12, 2006.
Company has ability to anticipate market trends and evolve technologies that deliver
value to our customers’ business. Company’s capabilities span the entire product life
cycle enabling it to deliver holistic, comprehensive and relevant solutions.
• Identification Technologies
• Enterprise Mobility
• Enterprise Solutions
• Application Development & Management
• IT Infrastructure Management
• Software Quality Assurance & Testing
• Strategic Consulting
• Banking & Financial Services
• Education
• Government
• Health Care
• Law Enforcement & Public Safety
• Manufacturing
• Telecom
• Transport & Logistic
• Aerospace

1
 STATEMENT ANALYSIS

A] COMPERATIVE STATEMENT ANALYSIS:

INTERPRETATION OF COMPARATIVE ANALYSIS OF INCOME
STATEMENT
1. Revenue from Operations
2022: ₹6,556.18
2023: ₹5,262.71 (↓19.70% from 2022)
2024: ₹4,883.80 (↓7.19% from 2023)
Interpretation: The company experienced a consistent decline in revenue over three years.
This indicates challenges in market demand, pricing pressure, or increased competition.
2. Total Income
2022: ₹6,569.03
2023: ₹5,321.58 (↓18.99% from 2022)
2024: ₹5,031.19 (↓5.46% from 2023)
Interpretation: The total income follows the same declining trend as revenue, indicating
overall pressure on the business operations.
3. Total Expenses
Interpretation: Expenses have decreased significantly. This suggests cost-cutting
measures or operational efficiency improvements in 2023 and 2024.
4. Profit Before Tax (PBT)
Interpretation: 2023 appears to be an outlier with extraordinary gains, possibly from non-
recurring income or cost-saving measures. The marginal profit in 2024 suggests
challenges in maintaining operational profitability.
5. Profit After Tax (PAT)
Interpretation: The massive swing from losses in 2022 to profits in 2023 suggests
significant cost-cutting. However, the steep drop in 2024 indicates challenges in sustaining
profitability
6. Earnings Per Share (EPS)
Interpretation: EPS aligns with the PAT trend, with 2023 as a standout year. The
negligible EPS in 2024 reflects low profitability and reduced returns to shareholders.

2
INTERPRETATION OF COMPARATIVE ANALYSIS OF BALANCE SHEET
1.Non Current Assets
Interpretation: The shrinking non-current assets signal financial challenges or divestment
of operational assets. This could impact long-term revenue-generating capacity unless the
company reinvests in productive assets.
2.Current Assets
Interpretation: The sharp decline in current assets from 2022 to 2023 highlights liquidity
stress and reduced operational scale. The modest increase in 2024 (40.12%) may signal
early signs of recovery, but the company still faces challenges in managing liquidity and
working capital effectively.
3.Total Equity
Interpretation: The decline in equity reflects poor financial health in 2023. The small
improvement in 2024 is a positive sign, but the equity base remains weak, potentially
limiting the company's ability to raise additional funds or sustain long-term growth.
4.Non Current Liabilities
Interpretation: The rapid increase in non-current liabilities indicates growing financial
commitments, which could either fund future growth or signal increasing financial stress.
5.Current Liabilities
Interpretation: The substantial drop in current liabilities indicates a shift in the
company's operational structure, due to repayment of short-term debts. While the low
level reduces immediate financial pressure, it also reflect limited operational activity.

3
B] COMMON SIZE STATEMENT ANALYSIS:
Income Statement:

4
Balance sheet:

5
 C] INDEX ANALYSIS:

INTERPRETATION OF INDEX ANALYSIS OF INCOME STATEMENT

• "Other Income" showed a significant growth in other income, as seen by a 192.35%
increase in its index value (from 358.13 to 1047.00).
• The "Profit/(Loss) before Tax" and "Total Comprehensive Income" indexes fell by
more than 70%, indicating rising profitability.

INTERPRETATION OF INDEX ANALYSIS OF BALANCE SHEET

• The index of "Total Non-Current Liabilities" surged by 881.60% (from 517.07

to 5075.61), means a significant rise in long-term commitments.
• The 51.47% increase in "Other Non-Current Assets" indicates growth in this
category.
• A 20.98% drop in "Cash & Cash Equivalents" means less liquidity.
• Despite an increase in other income, the Income Statement shows less profits.
• A rise in non-current liabilities on the balance sheet indicates greater leverage,
which indicates loan funding.
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 RATIO ANALYSIS
LIQUIDITY RATIO

S. No. Particulars 2024 2023 2022

1 Current Ratio 3.19 1.88 0.79
2 Quick Ratio 3.16 1.83 0.79
3 Cash Ratio 1.16 0.87 0.0040

• Current ratio: From 2022 (0.79) to 2024 (3.19), there has been a noticeable
improvement, means a higher ability to satisfy short-term liabilities with current assets.
The 2024 ratio indicates either excessive liquidity or underutilization of assets because
it is higher than the industry norm of 1.5–2.0.
• Quick ratio: Like the current ratio, the quick ratio increased from 0.78 in 2022 to 3.16
in 2024. Demonstrates sufficient liquidity even when inventory is excluded, which is a
good thing.
• Cash ratio: Significantly increased from 0.004 to 1.16 between 2022 and 2024.
shows that the business has enough cash and cash equivalents to cover its short-term
obligations, demonstrating a strong liquidity position.

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CAPITAL STRUCTURE RATIO:
S.
No. Particulars 2024 2023 2022
SOLVENCY RATIO
1 Debt-to-Equity ratio - - 11.31
2 Debt-to-Asset ratio - - 0.24
COVERAGE RATIO
1 Interest Coverage ratio 0 0 -0.97135
2 DSCR 0 0 -0.10787

A] Solvency Ratios:
Debt-to-equity ratio:
In 2022, co. had a very high debt-to-equity ratio of 11.31, indicating heavy reliance on
debt financing and increased financial risk.
Debt-to-asset ratio:
In 2022, co. had a debt-to-asset ratio of 0.24, meaning 24% of its assets were financed
through debt.

B] Coverage Ratios:
Interest coverage ratio:
In 2022, co. had a negative interest coverage ratio of -0.97, indicating it could not
generate enough operating income to cover its interest expenses , signaling financial
distress.

DSCR:
In 2022, co. had a negative interest coverage ratio of -0.1078, indicating it was unable to
generate sufficient cash flow to meet its debt repayment obligations

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PROFITABILITY RATIO:
S. No. Particulars 2024 2023 2022
1 Return-on-assets 0.0238882 -0.03353 -0.04227
Return on capital
2 employed 0.01 3.55 -0.77
3 Gross profit margin 20.253491 22.94236 94.45729
4 Net profit margin 0.48 246.43 -77.61
5 Return on equity 0.05 4.34 -0.77
6 Dividend yield 0 0 0
7 Dividend payout 0 0 0
8 Earnings yield 0.2793296 56.5625 -273.519
9 P/E ratio 358.00 1.77 -0.37
Return on Assets (ROA):
ROA improved significantly from a negative figure in 2022 and 2023 to a positive value in
2024, indicating the company has turned its asset utilization into generating profits after
consecutive losses.
Return on Capital Employed (ROCE):
ROCE improved in 2023, showing better efficiency in using capital, but slightly declined in
2024. This might indicate either reduced profitability or increased capital employed in 2024.
Gross Profit Margin:
The gross profit margin dropped sharply from 2022 to 2023 and continued to decrease in
2024, implying reduced operational efficiency or higher cost of goods sold.
Net Profit Margin:
The margin saw a improvement in 2023 but sharply declined in 2024, suggesting a one-time
gain or extraordinary income in 2023 that was not sustained in 2024.
Return on Equity (ROE):
ROE consistently improved over the years, reflecting increased profitability for shareholders
relative to equity.
Dividend Yield and Payout:
No dividends were declared during this period, possibly due to a focus on reinvestment or
recovering from earlier losses.
Earnings Yield:
The massive fluctuation reflects volatile earnings during these years, with substantial
recovery in 2023 but minimal yield in 2024.
Price-to-Earnings (P/E) Ratio:
The P/E ratio turned positive in 2023 and surged to an unusually high level in 2024, due to a
sharp increase in stock price or a decline in earnings.

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TURNOVER RATIO:
S. No. Particulars 2024 2023 2022
1 Inventory Turnover 361.62 19.88 1.10
2 Inventory holding period 1.00 18.10 328.17
3 Debtors turnover 36.06 0.10 0.06
Average collection
4 period 9.98 3,718.51 5,860.18
5 Assets turnover ratio 1.20 0.06 0.041011
6 Creditors turnover 86.68304 0.370268 0.024593
7 Average payable period 4.153062 972.2682 14638.23

Inventory Turnover

• 2022: 1.10
The company demonstrated extremely poor inventory management. A turnover ratio this low
indicates sluggish sales.This may reflect a lack of demand or inefficiencies in operational
planning.
• 2023: 19.88
Marked improvement from 2022, showing the company started addressing its inventory
issues. However, the ratio still falls short of being optimal, possibly due to lingering
inefficiencies or market recovery.
• 2024: 361.62
A dramatic increase in efficiency. This indicates robust sales and a well-optimized inventory
process. However, the extremely high turnover might suggest understocking, risking missed
opportunities during peak demand.

Inventory Holding Period (in days)

• 2022: 328.17 days

Inventory remained unsold for nearly a year, reflecting operational inefficiency and high
holding costs. This period signals poor turnover and potential obsolescence risks.

• 2023: 18.10 days

Significant progress as the company reduced its holding period drastically, demonstrating
improved sales and stock management.

• 2024: 0.99 days

Exceptional performance, with inventory turnover occurring almost daily. While this reflects
outstanding efficiency, it also raises concerns about insufficient stock levels to meet
unexpected demand.

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Debtors Turnover

• 2022: 0.06
Abysmal performance in collecting receivables. This indicates poor credit policies or issues
with customer solvency, leading to a significant cash flow strain.

• 2023: 0.10
Marginal improvement, but still indicative of severe inefficiencies in managing receivables.
This suggests slow progress in addressing the issues from 2022.

• 2024: 36.06
Stellar improvement, reflecting disciplined credit policies and efficient collections. This also
enhances the company's liquidity position.

Average Collection Period (in days)

• 2022: 5,860.18 days

Shockingly poor, with customers taking over 16 years on average to settle dues. This reflects
unmanageable credit policies or severe operational disruptions.

• 2023: 3,718.51 days

Some progress, but still an unacceptable delay in receivables collection, likely straining
operations and working capital.

CONCLUSION
Improvements:

• Increase in other income.

• Significant reduction in finance costs, from improved debt management and
collection effort.
• Lower depreciation and amortization expenses.
Declines:

• Reduction in core operational revenue.

• Drastic fall in net profit, (operational inefficiencies and extraordinary expenses).
• Decline in equity, (due to losses and restructuring).

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