Financial Review of Bombay Rayon Fashion Limited
Autor: Sharon • March 27, 2018 • 1,877 Words (8 Pages) • 529 Views
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- SOURCES OF CAPITAL
Liability
2015
( millions)
2014
( millions)
2013
( millions)
2012
( millions)
2011
( millions)
Share capital
134.60
134.60
134.60
134.60
127.60
Reserve
2483
2576.60
2986.80
2797.60
2451.24
Total shareholders’ funds
134.60
134.60
134.60
134.60
127.60
Share application
49.31
49.31
49.31
49.31
86.01
Net worth
2,667.19
2,760.66
3,170.53
2,981.77
2,665.15
Secured loans
4981
4374
3,421.23
2,869.74
2,574.35
Unsecured loans
143.15
143.11
188.52
364.10
280.94
Total debts
5,124.91
4,518.05
3,609.75
3,233.84
2,855.29
Total liability
7,792.10
7,278.71
6,780.28
6,215.61
5,520.44
[pic 4]
Year
Authorized capital
(Rs Cr)
Issued Capital(Rs Cr)
No. of Shares
Face value of shares (Rs)
2009-2015
150
134.6
134600000
10
2007-2009
120
69.1
69100000
10
2006-2007
70
63
63000000
10
2005-2006
70
48.98
48979686
10
2004-2005
50
32.96
32963640
10
2003-2004
5
5
4995000
10
2002-2003
2
1
100000
100
Bombay rayon fashion ltd.Ltd has major two sources of capital that are:
Equity Shares (No. Of Equity Shares 134600000 of par value of Rs. 10/- per share)
Long Term Loan (Secured Loans+ unsecured loans)
Long term Loans (secured loans)
[pic 5]
Interpretation & analysis
In 2002, Company had subdivided its 100000 equity shares of Rs.100 each into 65,33,190 equity shares.
from 2002-2015 company’s face value has continued to rs. 10.
Company had such decision to increase the liquidity so that more number of buyers and sellers rade in the stock (shares) of the company. Since the book value of the shares are more than the market value so shares are undervalued and you need to purchase as a investor point of view.
The debts are increasing from 4518 million to 5124 million, which means that company is increasing the amount of financial resources which are available for the growth. As we know that debts are the cheaper source of finance
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