Infosys

INTRODUCTION:

Infosys Limited (NYSE: INFY) was started in 1981 by seven people with US$ 250. Today, we
are a global leader in consulting, technology and outsourcing with revenues of US $10.21 billion
(FY17). Today, Infosys is a global leader in consulting, technology outsourcing and next-
generation services. We enable clients in 45 countries to create and execute strategies for their
digital transformation. We help our clients find the right problems to solve, and to solve these
effectively. Our award-winning Infosys Labs and its breakthrough intellectual property can be
leveraged as a co-creation engine to accelerate innovation across the enterprise. Infosys
pioneered the Global Delivery Model (GDM), based on the principle of taking work to the
location where the best talent is available, where it makes the best economic sense, with the least
amount of acceptable risk. Continued leadership around GDM enables Infosys to drive
extraordinary efficiencies and free up clients’ resources for strategic transformation or
innovation initiatives. Infosys has a global footprint with 85 offices and 100 development centers
in US, India, China, Australia, Japan, Middle East, UK, Germany, France, Switzerland,
Netherlands, Poland, Canada and many other countries. Infosys and its subsidiaries have
198,000+ employees as on March 31, 2017. Infosys takes pride in building strategic long term
client relationships. 97.8% of our revenues come from existing customers (Q4 FY 17). Infosys
has ongoing contracts with more than 890 major companies for software development and
maintenance. These contracts are executed with both onsite and offshore personnel. Infosys
Limited in the U.S. is wholly owned and operated branch of Infosys Limited in India. Therefore,
Infosys in the U.S. and Infosys in India are qualifying L-1 interoffice transferee organizations
under the L-1 statute. Infosys takes pride in building strategic long-term client relationships.
97.8% of our revenues come from existing customers. Relationship building is an important part
of every project at Infosys. We see each project as a building block for a sustained customer
relationship. A feature of our relationship model is "Residual Value Retention" - a crucial
relationship-building exercise. Every one of us working with a customer assimilates not only the
application and technology knowledge, but is also sensitized to the cultural values and business
objectives of the customer. Infosys has been certified at Level 5 under the Capability Maturity
Model of the Software Engineering Institute (SEI) a level achieved by only 1.5% of the more
than 1,000 software companies tested. Guided by the vision of becoming a globally respected
software corporation providing best-of-breed software solutions, leveraging technology,
delivered by best-in class people, Infosys has in less than two decades, emerged as a leading
player in the global software services market. In March 1999, Infosys became the first India-
registered company to be listed on an American stock exchange (NYSE: INFY). In 2011, Infosys
ranked among the most innovative companies in a Forbes survey. Infosys has won the 2014
Global Most Admired Knowledge Enterprises (MAKE) Award - the first and only Indian
company to win the award ten times. We were named leaders in Gartner’s Magic Quadrant for
Oracle Application implementation Services, Worldwide — for our completeness of vision and
ability to execute. Infosys product, Finacle® was rated as a leader in Gartner’s Magic Quadrant
for International Retail Core Banking 2014 for the eighth time in a row. In 2014, Infosys topped
Asia money’s corporate Governance Poll. We were voted India’s best company in the areas of
corporate governance and commitment to paying good dividends, in FinanceAsia’s Asia’s Best
Companies poll, 2015. We have a stable revenue stream because our customers are spread
widely across application, technological and geographical areas, allowing us to remain generally
unaffected by recessions, changes in geopolitical situations and changes in customer preferences.

HISTORY:

Infosys Limited is a global technology services firm that defines designs and delivers
information technology (IT)-enabled business solutions to their clients. The Company has
presence in 247 locations across 54 countries as on 31 March 2022. The Company is a leading
provider of consulting technology outsourcing and next-generation digital services to enable
clients to create and execute strategies for their digital transformation. It also provide end-to-end
business solutions that leverage technology for their clients including technical consulting design
development product engineering maintenance systems integration package-enabled consulting
and implementation and infrastructure management services. It also provides software products
to the banking industry.Infosys' strategy is to be a navigator for our clients as they ideate plan
and execute on their journey to a digital future. The Company has developed Finacle a universal
banking solution to large and medium size banks across India and overseas. Infosys BPO is a
majority owned subsidiary. Through Infosys BPO the company provides business process
management services such as offsite customer relationship management finance and accounting
and administration and sales order processing.

Board of Directors:

 Nandan M. Nilekani
 Kiran Mazumdar-Shaw
 Salil Parekh

VISION

To be a globally respected corporation that provides best-of-breed business solutions, leveraging

technology, delivered by best-in-class people.

MISSION

―To achieve our objectives in an environment of fairness, honesty, and courtesy towards our
clients, employees, vendors and society at large.‖

Infosys focuses on maintaining fairness, honesty and courtesy towards their clients, employees,
vendors and society in their path of achieving their objective. They believe that these three key
aspects were the main factors in achieving their vision.

Services offered:

 Business and Technology consulting  Custom software development

 Application services services
 Systems integration services  Maintenance services
 Product engineering services  Independent testing and validation
services
 Re-engineering services
CORPORATE SOCIAL RESPONSIBILITY:

Corporate Social Responsibility (CSR) is the contribution from the Corporate towards Social and
Economic development of Society. CSR integrates Organization, Society and Planet.Infosys
Foundation is a not-for-profit initiative which aims to fulfil the social responsibility of Infosys
Ltd and creates opportunities and strives towards a more equitable society. The Foundation
supports programs and organizations devoted to the cause of the destitute, the rural poor, the
mentally challenged, and the economically disadvantaged sections of the society. The
Foundation also helps preserve certain cultural forms and dying arts of India. The Infosys
Foundation prides itself on working with the poorest of the poor, selecting projects with infinite
care and working in areas that are normally overlooked by the larger society and has
subsequently covered in Andhra Pradesh, Tamil Nadu, Maharashtra, Orissa, Rajasthan, Kerala,
and Punjab in a phased manner.

CSR COMMITTEE MEMBERS:

 Kiran Mazumdar-Shaw, Chairperson

 U.B. Pravin Rao
 Dr. Punita Kumar-Sinha
 CHAIRMAN’S SPEECH

Dear Shareholders, Welcome to the 41st Annual General Meeting of Infosys. As we gather
virtually once again, it is a pleasure and privilege to host you today. We very much appreciate
your generous support, and on behalf of the Infosys Board of Directors, I thank you for taking
out the time from your busy schedules to join us. Fiscal 2022 has been a year of exceptional
growth – 19.7% in constant currency – bringing in US $16.3 billion, which is the fastest growth
we have seen in 11 years. Operating margin for the year stood at a healthy 23% and Free Cash
Flows crossed US $3 billion. Our digital business grew at 41% for the year and currently
accounts for 59% of our total revenues. Each of our business segments grew in double digits and
growth across geographies was broad-based. Revenues from the North America region crossed
the US $10 billion milestone. We won 94 large deals with TCV of US $9.5 billion, of which
40% was net new, setting a strong foundation for growth in the months ahead. The Board has
recommended a final dividend of ₹16 per share. Together with the interim dividend of ₹15 per
share already paid, the total dividend per share for FY22 amounts to ₹31 which is a 14.8%
increase over FY21. With this, the company has announced a total dividend of approx. ₹13,000
crore for FY22. Along with the share buyback of over ₹11,000 crore completed in September,
the total capital return in FY22 is over ₹24,100 crore (US $3.1 billion).

The pandemic, as it progressed into the second year, continued to test us all. At Infosys, we
brought together our collective resources and strengths to respond to the challenging situation
and run the business with the resilience that our clients, our employees and you – our
shareholders – expect from us. This One Infosys approach, where the collective strength of
Infosys was leveraged to accelerate the digital journey of our clients, helped us deliver our
highest annual growth in a decade. Salil, a vocal advocate of this mindset, urged the global
leadership team at Infosys to lean in with this outlook not only to rally our teams to collaborate
and drive synergies but also as our core differentiation when it comes to helping our capability-
building relentlessly and globally, enabling 39 million hours of skilling during the year.
Matching our passion to deliver for clients and nurture our people is our commitment to the
larger community. This is encapsulated in our shared purpose – to amplify human potential and
create the next opportunity for people, businesses, and communities. It inspires us to be a
sustainable business in every sense of the word. It drives us to nurture ambitious ESG aspirations
and to come together as One Infosys to realize it. From building a diverse workforce with strong
inclusive leaders, embracing positive climate action to helping our clients do the same, and
earning the trust of all stakeholders through ethical corporate governance – we do our best to
move us all forward. As a result of these efforts, and aligned to our ESG vision for 2030, Infosys
continues to be carbon-neutral. We also continue to be responsive to the needs of society in new
and innovative ways. As an example, this year, we instituted Infosys Springboard globally as our
flagship reskilling program democratizing learning, with free digital content, to empower 10-
million-plus people with digital skills by 2025. Today, 2.6 million learners are already registered
on the platform paving their way to a prosperous digital future. Today, Infosys has been
recognized as the fastest-growing IT services brand in the world and is among the top 25 fastest-
growing brands across sectors globally. Digital acceleration, across industries, is opening so
many new doors for Infosys to explore opportunities and create value from technology-led
innovation and transformation for our clients. Corporate leaders are having to deal with the
complexities and challenges of the post-pandemic world, along with slowing growth, supply
chain disruptions, soaring inflation, rapidly rising interest rates, and fears of a recession. Yet
every one of these challenges presents a tremendous opportunity to transition to new ways to
gain market share. Infosys is a trusted navigator for our clients and there is great potential to
leverage our expertise to steer them forward. On behalf of the Board, I want to assure you all that
we will leave no stone unturned in our efforts to evolve our approach to match the dynamics of
the market. We are proud of our 3,00,000+ employees for their dedication that has positioned us
so well for the future. Our journey thus far would have been impossible without their unstinting
efforts. We also thank our clients, co-founders and governments of the countries and states that
we operate in for their generous support. Our shareholders, as always, serve as the pole star
steering us towards greater ambition and success. To each of you, I offer our sincere thanks.

Bengaluru June 25, 2022

Thank you,

Nandan M. Nilekani

Chairman
 CHAPTER 2

FINANCIAL ANALYSIS
Financial analysis also known as financial statement analysis, accounting analysis, or analysis of
finance refers to an assessment of the viability, stability, and profitability of a business, sub-
business or project. It is performed by professionals who prepare reports using ratio and other
techniques, that makes use of information taken from financial statements and other reports.
These reports are usually presented to top management as one of their bases in making business
decisions

BREAKING DOWN OF FINANCIAL ANALSYSIS:

Financial analysis is used to evaluate economics trends, set financial policy, build long-term
plans for the business activity, and identify projects or companies for investment. This is done
through the synthesis of financial numbers and data. One of the most common ways to analyze
financial data is to calculate ratios from the data to compare against those of other companies or
against the company’s own historical performance.

FIRM LEVEL ANALYSIS:

Financial analysts often assess the following elements of a firm:

1. Profitability - its ability to earn income and sustain growth in both the short and long-term. A
company's degree of profitability is usually based on the income statement, which reports on the
company's results of operations

2. Solvency - its ability to pay its obligation to creditors and other third parties in the long-term;

3. Liquidity - its ability to maintain positive cash flow, while satisfying immediate obligations;

4. Stability - the firm's ability to remain in business in the long run, without having to sustain
significant losses in the conduct of its business. Assessing a company's stability requires the use
of the income statement and the balance sheet, as well as other financial and non-financial
indicators.

5. Facilitates Planning – A comparative balance sheet helps an organisation in determining the

trends of its growth or decrease in the value of its Assets, and Equity and Liabilities.

Technical and fundamental analysis:

There are two types of financial analysis: technical analysis and fundamental analysis, technical
analysis looks at quantitative charts, such as moving averages (MA), while fundamental analysis
uses ratios, such as a company’s earnings per share (EPS).

COMPARATIVE BALANCE SHEET:

A comparative balance sheet is a statement that shows the financial positions of an organisation
over different periods for which comparison is made or required. A comparative balance sheet is
a side-by-side comparison of the entire balance sheet report of a current accounting period and a
previous accounting period. A date-to-date comparison within the company helps a business
owner or investor identify financial performance trends over time. A Comparative Balance Sheet
helps an organization in determining the trends of its growth or decrease in the value of its
Assets, and Equity and Liabilities. The trends ultimately help in planning the future course of
action of the firm.

For the estimation of an organization’s future progress, it is essential to look into its past
performance, for which performing a comparative study of two or more years of company
financial statements become necessary.

A statement that helps in the comparative study of the components of a company’s balance sheet
and income statement over a period of two or more years, both in absolute and percentage form,
is known as a Comparative Statement.

There is no standard format for a comparative balance sheet. It is somewhat more common to
report the balance sheet as of the least recent period furthest to the right, though the reverse is the
case you are reporting balance sheets in a trailing twelve-months format.
 COMPARATIVE BALANCE SHEET OF INFOSYS LTD FOR THE YEAR 2018-2022

BALANCE SHEET OF INFOSYS (in Rs. Cr.) 18-Mar 19-Mar 20-Mar 21-Mar 22-Mar
12 mths 12 mths 12 mths 12 mths 12 mths
EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share Capital 5.13 99.45 -2.25 0.05 -1.27
TOTAL SHARE CAPITAL 5.13 99.45 -2.25 0.05 -1.27
Reserves and Surplus 7.14 -3.01 -1.20 15.42 -3.52
TOTAL RESERVES AND SURPLUS 7.14 -3.01 -1.20 15.42 -3.52
TOTAL SHAREHOLDERS FUNDS 7.11 -1.25 -0.76 14.94 -3.11
NON-CURRENT LIABILITIES
Long Term Borrowings
Deferred Tax Liabilities [Net] -100.00 7.13 2.77 -8.09 64.58
Other Long Term Liabilities -60.58 19.23 1,122.18 41.04 -0.26
Long Term Provisions
TOTAL NON-CURRENT LIABILITIES -88.50 10.66 354.63 33.43 6.67
CURRENT LIABILITIES
Short Term Borrowings
Trade Payables -63.55 117.34 -4.68 2.16 70.87
Other Current Liabilities 6.47 27.01 -1.02 16.79 38.89
Short Term Provisions -19.72 15.83 0.20 30.63 39.18
TOTAL CURRENT LIABILITIES 1.06 32.31 -1.36 15.78 41.73
TOTAL CAPITAL AND LIABILITIES 5.28 4.02 2.67 15.92 5.80
ASSETS
NON-CURRENT ASSETS
Tangible Assets -4.67 15.14 33.70 3.37 2.30
Intangible Assets -100.00 -20.77 -25.24 203.90 3.85
Capital Work-In-Progress -13.52 -15.95 -22.03 -4.13 -54.64
Other Assets
FIXED ASSETS -7.05 10.47 27.41 3.93 -1.01
Non-Current Investments 27.86 0.58 15.37 58.94 3.40
Deferred Tax Assets [Net] -69.33 -1.24 28.28 -33.17 1.57
Long Term Loans And Advances -73.68 -15.79 1,762.50 -89.93 13.33
Other Non-Current Assets -17.17 -3.01 -14.69 5.86 9.63
TOTAL NON-CURRENT ASSETS 1.31 2.89 13.80 22.66 2.83
CURRENT ASSETS
Current Investments 63.27 2.90 -34.08 -49.15 168.38
Inventories
Trade Receivables -9.80 10.03 15.62 6.05 15.69
Cash And Cash Equivalents 14.21 -7.27 -12.79 29.86 -30.33
Short Term Loans And Advances -21.12 166.67 -70.71 -25.41 -4.37
OtherCurrentAssets -14.14 14.74 3.04 14.53 29.18
TOTAL CURRENT ASSETS 8.15 4.84 -5.20 10.18 8.61
TOTAL ASSETS 5.28 4.02 2.67 15.92 5.80
COMPARATIVE PROFIT AND LOSS STATEMENT:

Comparative profit and loss statement is the horizontal analysis of the statement of profit and
loss which shows the operating results for the compared accounting periods, changes in data in
terms of the absolute amount and percentage from one period to another. Horizontal period to
another, horizontal analysis is a trend analysis where the firm compares ratio, statement etc over
a period of time.

A profit and loss statement (P&L), or income statement or statement of operations, is a financial
report that provides a summary of a company’s revenues, expenses, and profits/losses over a
given period of time. The P&L statement shows a company’s ability to generate sales, manage
expenses, and create profits. It is prepared based on accounting principles that include revenue
recognition, matching, and accruals, which makes it different from the cash flow statement. A
profit and loss or income statement is an important tool for retail success. The significance of a
P&L statement is to help retailers develop a sales target to reach, price goods at the appropriate
price and determine if their total operating expenses are too high relative to sales and need to be
adjusted. It is a check and balance system for a business to account for all money spent, made
and owed which keeps a business on track to reach.

Each portion of the P&L statement plays an important role in the overall picture of a company’s
profitability. Net Sales is driven by the amount of product a retailer sells. However, net sales
have to account for any discount, sales returns and sales allowances to calculate an accurate
amount figure. An income statement is that represents a period of time (as does the cash flow
statement). This contract with the balance sheet, which represents a single moment of time.
 COMPARATIVE PROFIT AND LOSS STATEMENT FOR THE YEAR
2018-2022
PROFIT & LOSS ACCOUNT OF INFOSYS (in 18-Mar 19-Mar 20-Mar 21-Mar 22-Mar
Rs. Cr.)
12 mths 12 mths 12 mths 12 mths 12 mths
INCOME
REVENUE FROM OPERATIONS [GROSS] -4.28 18.03 8.13 8.68 20.98
Less: Excise/Sevice Tax/Other Levies
REVENUE FROM OPERATIONS [NET] -4.28 18.03 8.13 8.68 20.98
TOTAL OPERATING REVENUES -4.28 18.03 8.13 8.68 20.98
Other Income -23.81 -29.04 -5.33 -8.63 30.69
TOTAL REVENUE -5.47 15.16 7.62 8.11 21.26
EXPENSES
Cost Of Materials Consumed
Purchase Of Stock-In Trade
Operating And Direct Expenses -10.64 86.77 9.17 -1.87 62.26
Changes In Inventories Of FG,WIP And Stock-In
Trade
Employee Benefit Expenses -4.71 17.94 10.81 6.47 14.35
Finance Costs
Depreciation And Amortisation Expenses
Other Expenses -5.81 -35.21 -20.46 -1.58 -9.22
TOTAL EXPENSES -5.73 21.67 9.35 4.30 23.11
PROFIT/LOSS BEFORE EXCEPTIONAL, -4.87
0.10 2.76 19.53
EXTRAORDINARY ITEMS AND TAX 16.42
Exceptional Items
PROFIT/LOSS BEFORE TAX -4.87 0.10 2.76 19.53 16.42
TAX EXPENSES-CONTINUED OPERATIONS
Current Tax
Less: MAT Credit Entitlement
Deferred Tax -120.80 -114.40 -936.11 -238.21 -27.88
Tax For Earlier Years .
TOTAL TAX EXPENSES
PROFIT/LOSS AFTER TAX AND BEFORE -14.47
-8.99 5.72 16.12
EXTRAORDINARY ITEMS 17.66
PROFIT/LOSS FROM CONTINUING -14.47
-8.99 5.72 16.12
OPERATIONS 17.66
PROFIT/LOSS FOR THE PERIOD -14.47 -8.99 5.72 16.12 17.66
 RATIO ANALYSIS:

Ratio analysis compares relationships between financial statement accounts. This means that one
income statement or balance sheet account is being compared to another. These relationships
between financial statement accounts will not only give a manager or investor an idea of the how
healthy the business is on a whole, it will also give them keen insights into business operations.
It can be used to check various factors of a business such as profitability, liquidity, solvency and
efficiency of the company or the business.

1.Liquidity Ratios: Liquidity ratios are helpful in determining the ability of the company to
meet its debt obligations by using the current assets. At times of financial crisis, the company can
utilise the assets and sell them for obtaining cash, which can be used for paying off the debts.
Some of the most commonly used liquidity ratios are quick ratio, current ratio, cash ratio, etc.
The liquidity ratios are used mostly by creditors, suppliers and any kind of financial institutions
such as banks, money lending firms, etc for determining the capacity of the company to pay off
its obligations as and when they become due in the current accounting period.

2.Solvency Ratios: also called financial leverage ratios, solvency ratios compare a company's
debt levels with its assets, equity, and earnings to evaluate whether a company canstay afloat in
the long-term by paying its long-term debt and interest on the debt. Examples ofsolvency ratios
include debt-equity ratio, debtassets ratio, and interest coverage ratio.

3. Activity Ratio: Activity ratios are used to measure the efficiency of the business activities. It
determines how the business is using its available resources to generate maximum possible
revenue. These ratios are also known as efficiency ratios.

4.Profitability ratios: these ratios show how well a company can generate profits from its
operations. Profit margin, return on assets, return on equity, return on capital employed, and
gross margin ratio are examples of profitability ratios. The profitability ratio can also be used to
compare the financial performance of a similar firm, i.e., it can be used for analysing competitor
perform
1. GROSS PROFIT RATIO :

The GROSS PROFIT RATIO is a calculation that returns a value representing the percentage of
profit earned on the net sales of an organization. The net sales value of an organization is
calculated by reducing the gross sales amount by any credits issued for product returns,
discounts, or rebate programs.

FORMULA:

• Gross Profit Ratio = Gross Profit/Sales x 100

• Gross Profit= Total Revenue - Total Expenditure

PARTICULARS 2018 2019 2020 2021 2022

Gross profit 19,908.00 19,927.00 20,477.00 24,477.00 28,495.00

Sales 61,941.00 73,107.00 79,047.00 85,912.00 103,940.00

Margin 32.14 27.26 25.90 28.49 27.41

Gross Profit Ratio

35
30 32.14
25 27.26 28.49 27.41
25.9
20
15
10
5
0
2018 2019 2020 2021 2022

INTERPRETATION : The above data shows the gross profit for the five years from 2018 to
2022 . In the year 2018 the gross profit of the company was 32.14. And it started to decrease in
the year 2021 and in the year 2022 the gross profit of the company hit by 32.14.
2. NET PROFIT RATIO:

Net Profit Ratio, also referred to as the Net Profit Margin Ratio, is a profitability ratio that
measures the company’s profits to the total amount of money brought into the business. In other
words, the net profit margin ratio depicts the relationship between the net profit after taxes and
net sales taking place in a business.

FORMULA:

Net Profit Ratio = Net Profit/Net Sales x 100

Particulars 2018 2019 2020 2021 2022

Net Profit 16,155.00 14,702.00 15,543.00 18,048.00 21,235.00

Sales 61,941.00 73,107.00 79,047.00 85,912.00 103,940.00

Net Profit Ratio 26.08 20.11 19.66 21.01 20.43

Net Profit Ratio

30
25
26.08
20
20.11 19.66 21.01 20.43
15
10
5
0
2018 2019 2020 2021 2022

INTERPRETATION:

The above data shows the Net profit ratio for the five years from 2018 to 2022. In the
year 2018 the Net profit Ratio of the company was 26.08 . And it started to decrease
in the year 2021 and in the year 2022 the Net profit ratio of the company hit by 20.43.
 3. Return on Equity:

Return on equity (ROE) is a ratio that provides investors with insight into how efficiently a
company (or more specifically, its management team) is handling the money
that shareholders have contributed to it. In other words, return on equity measures the
profitability of a corporation in relation to stockholders’ equity.

FORMULA:

Return on Equity = Net Profit/ Shareholders fund

Particulars 2018 2019 2020 2021 2022

Net Profit 16,155.00 14,702.00 15,543.00 18,048.00 21,235.00
Shareholders fund 63,502.00 62,711.00 62,234.00 71,531.00 69,306.00
Return on
Equity 0.25 0.23 0.25 0.25 0.31

Return on Equity
0.35
0.3
0.31
0.25
0.2 0.25 0.25 0.25
0.23
0.15
0.1
0.05
0
2018 2019 2020 2021 2022

INTERPRETATION:

The above data shows the Return on equity for the five years from 2018 to 2022. In the year
2018 Return on equity of the company was 0.25 . And it started to increase in the year 2021 and
in the year 2022 the Net profit ratio of the company hit by 0.31.
4. RETURN ON INVESTMENT:

Return on investment (ROI) is an approximate measure of an investment's profitability. ROI is

calculated by subtracting the initial cost of the investment from its final value, then dividing this
new number by the cost of the investment, and finally, multiplying it by 100.

FORMULA:

Return on investment (ROI) = Net Profit/cost of investment x 100

Particulars 2018 2019 2020 2021 2022

Profit 16,155.00 14,702.00 15,543.00 18,048.00 21,235.00
Investment 63,502.00 62,711.00 62,234.00 71,531.00 69,306.00
Return on
Investment 25.44 23.44 24.98 25.23 30.64

Return On Investment
35
30
25 30.64
20 25.44 24.98 25.23
23.44
15
10
5
0
2018 2019 2020 2021 2022

INTERPRETATION: The above graphs shows the return on investment ratio for the years
2018 to 2022 . In the year 2018 ROI is 25.44 and it increases in the year 2020 to 25.23 and it
increases and hits 30.64 in the year 2022 .
5. EQUITY RATIO:

The Equity Ratio is a financial metric that measures the amount of leverage used by a company.
It uses investments in assets and the amount of equity to determine how well a company
manages its debts and funds its asset requirements. Equity ratios with higher value generally
indicate that a company’s effectively funded its asset requirements with a minimal amount of
debt.

FORMULA:

Equity Ratio = Shareholder’s Equity/Total Assets.

Particulars 2018 2019 2020 2021 2022

Shareholder's
63,502.00 62,711.00 62,234.00 71,531.00 69,306.00
fund
Total Assets 75,877.00 78,930.00 81,041.00 93,939.00 99,387.00
Equity Ratio 0.84 0.79 0.77 0.76 0.70

Equity Ratio
1
0.8
0.84 0.79
0.6 0.77 0.76
0.7
0.4
0.2
0
2018 2019 2020 2021 2022

INTERPRETATION: The above graph show the equity ratio for the company for the year
from 2018 to 2022 . In the year 2018 the equity ratio of the company is 0.84 and it gradually
decreases and in the equity ratio of the company hits 0.70 in the year 2022.
6.Debt to Equity Ratio

The debt-to-equity ratio measures your company’s total debt relative to the amount originally
invested by the owners and the earnings that have been retained over time.
The debt-to-equity ratio of your business is one of the things the bank looks at to assess your
situation before agreeing to lend you an additional amount.

Particulars 2018 2019 2020 2021 2022

Debt 12375 16219 18807 22408 30081
Equity 63,502.00 62,711.00 62,234.00 71,531.00 69,306.00
Debt to
Equity Ratio 0.19 0.26 0.30 0.31 0.43

Debt to Equity Ratio

0.5

0.4
0.43
0.3
0.3 0.31
0.2 0.26
0.19
0.1

0
2018 2019 2020 2021 2022

INTERPRETATION: The above graph show the debt to equity ratio for the company for
the year from 2018 to 2022 . In the year 2018 the equity ratio of the company is 0.19 and it
gradually increases and in the equity ratio of the company hits 0.43 in the year 2022.
7. TOTAL DEBT TO TOTAL ASSETS RATIO:

The debt-to-total-assets ratio shows how much of a business is owned by creditors (people it has
borrowed money from) compared with how much of the company's assets are owned by
shareholders. It is one of three calculations used to measure debt capacity, along with the debt
servicing ratio and the debt-to-equity ratio. The total-debt-to-totalasset ratio is calculated by
dividing a company's total debts by its total assets. Debt capacity reflects both a company’s
ability to service its current debt and its ability to raise cash from new debt, if necessary.
FORMULA:

Total Debt to Total Assets Ratio = Total Debts/Total Assets.

Particulars 2018 2019 2020 2021 2022

Total debt 12375.00 16219.00 18807.00 22408.00 30081.00
Total Asset 75877.00 78930.00 81041.00 93939.00 99387.00
Total Debt to
Total Assets Ratio 0.16 0.21 0.23 0.24 0.30

Total Debt to Total Assets

Ratio
0.4
0.3
0.2 0.3
0.21 0.23 0.24
0.1 0.16
0
2018 2019 2020 2021 2022

INTERPRETATION: The above graph shows total debts and total assets ratio for the
company for the year from 2018 to 2022 . In the year 2018 the total debts and total assets ratio of
the company is 0.16 and it gradually increases , the total debts and total assets ratio of the
company hits 0.30 in the year 2022.
8. CURRENT RATIO:

The current ratio is a liquidity ratio that measures a company's ability to pay short-term
obligations or those due within one year. It tells investors and analysts how a company can
maximize the current assets on its balance sheet to satisfy its current debt and other payables.
Formula:

Current Ratio = Current Assets/Current Liabilities

Particulars 2018 2019 2020 2021 2022

Current Assets 44,090.00 46,223.00 43,820.00 48,282.00 52,437.00
Current
11,662.00 15,430.00 15,220.00 17,622.00 24,976.00
Liabilites
CURRENT
RATIO 3.78 3.00 2.88 2.74 2.10

Current Ratio
4
3.5 3.78
3
2.5 3 2.88 2.74
2
2.1
1.5
1
0.5
0
2018 2019 2020 2021 2022

INTERPRETATION: The above graph shows the current ratio of the company for the year
from 2018 to 2022 . In the year 2018 the current ratio of the company is 3.78 and it gradually
decreases and the current ratio of the company hits 2.1 in the year 2022
9. ABSOLUTE LIQUID RATIO

ABSOLUTE LIQUID RATIO this ratio measures the total liquidity available to the company.
This ratio only considers marketable securities and cash available to the company. This ratio
only tests short-term liquidity in terms of cash, marketable securities, and current investment.

FORMULA:

𝐂𝐚𝐬𝐡 𝐚𝐧𝐝 𝐛𝐚𝐧𝐤 𝐛𝐚𝐥𝐚𝐧𝐜𝐞 + 𝐌𝐚𝐫𝐤𝐞𝐭𝐚𝐛𝐥𝐞 𝐬𝐞𝐜𝐮𝐫𝐢𝐭𝐢𝐞𝐬 /𝐂𝐮𝐫𝐫𝐞𝐧𝐭 𝐋𝐢𝐚𝐛𝐢𝐥𝐢𝐭𝐢𝐞s

Particulars 2018 2019 2020 2021 2022

Cash and cash
16,770.00 15,551.00 13,562.00 17,612.00 12,270.00
equivalents
Current
11,662.00 15,430.00 15,220.00 17,622.00 24,976.00
liabilities
Absolute
Liquid Ratio 1.44 1.01 0.89 1.00 0.49

ABSOLUTE LIQUID RATIO

2

1.5
1.44
1
1.01 1
0.89
0.5
0.49
0
2018 2019 2020 2021 2022

INTERPRETATION: The above graph shows absolute liquid ratio of the company for the
year from 2018 to 2022 . In the year 2018 the P absolute liquid ratio 4of the company is 7.03 and
it gradually decreases and the Proprietary Ratio of the company hits 4.71 in the year 2022
 10. PROPRIETARY RATIO

Proprietary ratio is a type of solvency ratio that is useful for determining the amount or
contribution of shareholders or proprietors towards the total assets of the business. It is also
known as equity ratio or shareholder equity ratio or net worth ratio.

Formula:

PROPRIETORY RATIO= Shareholders Fund/ Total Tangible Assets

Particulars 2018 2019 2020 2021 2022

Shareholders
63,502.00 62,711.00 62,234.00 71,531.00 69,306.00
fund
Total Tangible
9,027.00 10,394.00 13,897.00 14,365.00 14,695.00
Assets
Proprietary
Ratio 7.03 6.03 4.47 4.97 4.71

Proprietary Ratio
8

6 7.03
6.03
4 4.97 4.71
4.47

0
2018 2019 2020 2021 2022

INTERPRETATION: The above graph shows Proprietary Ratio of the company for the
year from 2018 to 2022 . In the year 2018 the Proprietary Ratio of the company is 7.03 and it
gradually decreases and the Proprietary Ratio of the company hits 4.71 in the year 2022
11.TRADE RECEIVABLE RATIO:

The receivables turnover ratio measures the efficiency with which a company is able to collect
on its receivables or the credit it extends to customers. Trade Receivables Turnover Ratio, also
known as the accounts receivable turnover ratio or debtor’s turnover ratio, is an important ratio
in accounting. It is used to determine the efficiency by which the business is managing the credit
that is being extended to its customers and evaluate how long does it take for the business to
collect the outstanding debt in the accounting period.

FORMULA:

Trade Receivables Ratio = Net Sales/Average Trade Receivables.

Particulars 2018 2019 2020 2021 2022

Net Sales 61,941.00 73,107.00 79,047.00 85,912.00 103,940.00
Average Trade
6,075.00 6,685.00 7,729.00 8,197.00 9,483.00
Receivables
Trade Receivables
Ratio 10.20 10.94 10.23 10.48 10.96

Trade Receivables Ratio

11.2
11
10.8 10.94 10.96
10.6
10.4
10.48
10.2
10 10.2 10.23
9.8
2018 2019 2020 2021 2022

INTERPRETATION: The above graph shows the Trade receivables ratio of the company for
the year from 2018 to 2022 . In the year 2018 the Trade receivables ratio of the company is 10.2
and it gradually increases and decreases and Trade receivables ratio of the company hits 10.96 in
the year 2022.
12. FIXED ASSETS TURNOVER RATIO:

The fixed asset turnover ratio reveals how efficient a company is at generating sales from its
existing fixed assets. A higher ratio implies that management is using its fixed assets more
effectively. A high Fixed Assets Turnover Ratio (FAT) ratio does not tell anything about a
company's ability to generate solid profits or cash flows.

FORMULA:

Fixed Assets Turnover Ratio = Net Sales/ Average Fixed Assets.

Particular 2018 2019 2020 2021 2022

Net Sales 61,941.00 73,107.00 79,047.00 85,912.00 103,940.00
Average Fixed 5,299.00 5,854.00 7,459.00 7,752.00 7,674.00
Asset
Fixed Assets
11.69 12.49 10.60 11.08 13.54
Turnover Ratio

Fixed Assets Turnover Ratio

4
3.79
3
2.76 2.8
2 2.37
1.91
1

0
2018 2019 2020 2021 2022

INTERPRETATION: The above graph show the fixed assets turnover ratio for the company
for the year from 2018 to 2022. In the year 2018 the fixed assets turnover ratio of the company is
11.69 and it gradually increases and the equity ratio of the company hits 13.54 in the year 2022.
13. Capital Turnover Ratio:

Capital turnover is a measure that calculates how efficiently the company is managing the capital
invested by the shareholders in the company to generate revenues. If the ratio is high, it shows
that the company efficiently utilizes the amount of capital invested. In contrast, if the ratio is
low, it indicates that the company is not managing its capital investment efficiently to generate
the required revenue

FORMULA:

Capital Turnover = Total Sales / Shareholder’s Equity

Particulars 2018 2019 2020 2021 2022

Total Sales 61,941.00 73,107.00 79,047.00 85,912.00 103,940.00
Shareholder's
63,502.00 62,711.00 62,234.00 71,531.00 69,306.00
Fund
Capital
Turnover
Ratio 0.98 1.17 1.27 1.20 1.50

Capital Turnover Ratio

1.6
1.4 1.5
1.2
1.27 1.2
1 1.17
0.8 0.98
0.6
0.4
0.2
0
2018 2019 2020 2021 2022

INTERPRETATION: The above graph shows the Capital turnover of the company for the year
from 2018 to 2022. In the year 2018 the Capital turnover of the company is 0.98 and it gradually
increases and decreases and Trade receivables ratio of the company hits 1.5 in the year 2022.
14. WORKING CAPITAL TURNOVER RATIO:

Working capital turnover ratio is the ratio between the net revenue or turnover of a business and
its working capital. Working capital turnover is a ratio that measures how efficiently a company
is using its working capital to support sales and growth.

FORMULA:

Working Capital Turnover Ratio = Sales / Working Capital

Particulars 2018 2019 2020 2021 2022

Total Sales 61,941.00 73,107.00 79,047.00 85,912.00 103,940.00
working
capital 32428 30793 28600 30660 27461
Working
Capital Ratio 1.91 2.37 2.76 2.80 3.79

Working Capital Ratio

4
3.5 3.79
3
2.5 2.76 2.8
2 2.37
1.5 1.91
1
0.5
0
2018 2019 2020 2021 2022

INTERPRETATION:

The above graph shows the Working capital turnover ratio of the company for the year from
2018 to 2022 . In the year 2018 the working capital ratio of the company is 1.91 and it gradually
increases working capital turnover ratio of the company hits 3.79 in the year 2022.
15.EARNINGS PER SHARE:

Earnings per share (EPS) is calculated as a company's profit divided by the outstanding shares of
its common stock. The resulting number serves as an indicator of a company's profitability. It is
common for a company to report EPS that is adjusted for extraordinary items and potential share
dilution.

Formula:

Earnings Per Share = Net Income/Outstanding Shares.

Particulars 2018 2019 2020 2021 2022

Net Profit 16,155.00 14,702.00 15,543.00 18,048.00 21,235.00
No.of Shares 434 423 414 419 415
Earning Per
Share 37.22 34.76 37.54 43.07 51.17

Earning Per Share

60
50
51.17
40
43.07
30 37.22 34.76 37.54
20
10
0
2018 2019 2020 2021 2022

INTERPRETATION: The above graph shows the Earnings per share of the company for the
year from 2018 to 2022 . In the year 2018 the Earnings per share of the company is 37.22 and it
gradually increase and decreases and Earnings per share of the company hits 51.17 in the year
2022.
 CHAPTER 3

STATISTICAL ANALYSIS
Statistical analysis is the collection and interpretation of data in order to uncover patterns and
trends. It is a component of data analytics. Statistical analysis can be used in situations like
gathering research interpretations, statistical modeling or designing surveys and studies.
Statistical analysis is the process of collecting and analysing data in order to discern patterns and
trends. It is a method for removing bias from evaluating data by employing numerical analysis.
This technique is useful for collecting the interpretations of research, developing statistical
models, and planning surveys and studies. Statistical analysis is a scientific tool that helps collect
and analyze large amounts of data to identify common patterns and trends to convert them into
meaningful information. In simple words, statistical analysis is a data analysis tool that helps
draw meaningful conclusions from raw and unstructured data. The conclusions are drawn using
statistical analysis facilitating decision-making and helping businesses make future predictions
on the basis of past trends. It can be defined as a science of collecting and analysing data to
identify trends and patterns and presenting them. Statistical analysis involves working with
numbers and is used by businesses and other institutions to make use of data to derive
meaningful information.

TREND ANALYSIS:

Trend analysis is an analysis of the trend of the company by comparing its financial statements to
analyse the trend of the market or analysis of the future based on past performance results, and
it’s an attempt to make the best decisions based on the results of the analysis done. Trend
analysis involves collecting the information from multiple periods and plotting the collected
information on a horizontal line to find actionable patterns from the given information. In
Finance, Trend Analysis is used for technical analysis and accounting analysis of stocks.

TYPES OF TRENDS:

• Uptrend.

• Downtrend.

• Sideways Trend.
 1. SALES TREND:
Sales Trend analysis is the review of historical revenue results to detect patterns. It is a
useful budgeting and financial analysis method that can indicate the onset of changes in
the near-term revenue growth rates of a business. It is rarely adequate to simply plot the
total sales of a business on a trend line and expect to obtain any significant information
from it.

Year Sales x x^2 xy Trend Value

2018 65,960.00 -2 4 -131920 64876.2
2019 75,959.00 -1 1 -75959 74359
2020 81,747.00 0 0 0 83841.8
2021 88,379.00 1 1 88379 93324.6
2022 107,164.00 2 4 214328 102807.4
419,209.00 0 10 94828 354332.8

Y=a+bx
a=∑y/n=419209/5=83841.8
b=∑xy/∑x2 =94828/10=9482.8
2018

Y=83841.8+9482.8(-2)= 64876.2

2019

Y=83841.8+9482.8(-1)= 74359

2020

Y=83841.8+9482.8(0)= 83841.8

2021

Y=83841.8+9482.8(1)= 93324.6

2022

Y=83841.8+9482.8(2)= 102807.4
PREDICTION

2023

Y=83841.8+9482.8(3)= 112290.2

2024

Y=83841.8+9482.8(4)= 121773

Sales Trend
120,000.00

100,000.00

80,000.00

60,000.00

40,000.00

20,000.00

0.00
2018 2019 2020 2021 2022
Series1 65,960.00 75,959.00 81,747.00 88,379.00 107,164.00
Series2 64876.2 74359 83841.8 93324.6 102807.4

INTERPRETATION:

It can be understood from the above data shows the sales trend analysis from the year 2018 to
2022. In the year 2018 the balance was 64876.2 and in the upcoming year the sales increases
gradually and in the year 2022 it increases to 102807.4 .In the year 2023 and 2024 the sales trend
is expected to be 112290.2 and 121773 in the upcoming years it may increase and gradually
decrease.
2. NET PROFIT TREND:

Net profit trends refer to the general tendency or direction of increase or decrease in net profit
over a period of time. Presenting a series of chronologically arranged net profit amounts and
calculating the percentage increase or decrease of each net profit over the earliest net profit will
reveal the general direction of change over time. Net Profit Margin measures how much net
income is generated as a percentage of revenue received.

Year Net Profit(y) x x^2 xy Trend Value

2018 16,155.00 -2 4 -32310 14435.4
2019 14,702.00 -1 1 -14702 15786
2020 15,543.00 0 0 0 17136.6
2021 18,048.00 1 1 18048 18487.2
2022 21,235.00 2 4 42470 19837.8
85,683.00 0 10 13506 68546.4

Y= a + bx
a=∑y/n=85,683/5=17136.6

b=∑xy /∑x2 =13506/10=1350.6

2018

Y=17136.6+1350.6(-2)= 14435.4

2019

Y=17136.6+1350.6(-1)= 15786

2020

Y=17136.6+1350.6(0)= 17136.6

2021

Y=17136.6+1350.6(1)= 18487.2

2022

Y=17136.6+1350.6(2)= 19837.8
PREDICTION
2023

Y=17136.6+1350.6(3)= 21188.4

2024

Y=17136.6+1350.6 (4)= 22539

Net Profit Trend

25,000.00

20,000.00

15,000.00

10,000.00

5,000.00

0.00
2018 2019 2020 2021 2022
Series1 16,155.00 14,702.00 15,543.00 18,048.00 21,235.00
Series2 14435.4 15786 17136.6 18487.2 19837.8

INTERPRETATION:

It can be understood from the above data shows the Net profit trend analysis from the year 2018
to 2022. In the year 2018 the balance was 14435.4 and in the upcoming year the sales increases
gradually and in the year 2022 it increases to 19837.8 .In the year 2023 and 2024 the sales trend
is expected to be 21188.4 and 22539 in the upcoming years it may increase and gradually
decrease.
 2. NET WORTH TREND:
Net worth is the difference between the asset and the liability of an individual or a
company. A measure of how much an entity is worth consistent increase in net worth
indicates good financial health; conversely, net worth may be depleted by annual
operating losses or a substantial decrease in asset values relatives to liabilities.

Year Net Worth x x^2 xy Trend Value

2018 64215 -2 4 -128430 62211
2019 63500 -1 1 -63500 65531.9
2020 65821 0 0 0 68852.8
2021 76317 1 1 76317 72173.7
2022 74411 2 4 148822 75494.6
344264 0 10 33209 344264

Y= a + bx
a=∑y/n = 344264/5 = 68852.8

b=∑xy/∑x2 = 33209/10=3320.9

2018

Y=68852.8+3320.9 (-2)= 62211

2019

Y=68852.8+3320.9 (-1)= 65531.9

2020

Y=68852.8+3320.9 (0)= 68852.8

2021

Y=68852.8+3320.9 (1) = 72173.7

2022

Y=68852.8+3320.9 (2) = 75494.6

PREDICTION

2023

Y=68852.8+3320.9 (3) = 78815.5

2024

Y=68852.8+3320.9 (4) = 82136.4

Net Worth Trend

90000
80000
70000
60000
50000
40000
30000
20000
10000
0
2018 2019 2020 2021 2022
Series1 64215 63500 65821 76317 74411
Series2 62211 65531.9 68852.8 72173.7 75494.6

INTERPRETATION:

It can be understood from the above data shows the Net worth trend analysis from the year 2018
to 2022. In the year 2018 the balance was 62211 and in the upcoming year the sales increases
gradually and in the year 2022 it increases to 65531.9 .In the year 2023 and 2024 the sales trend
is expected to be 78815.5 and 82136.4 in the upcoming years it may increase and gradually
decrease.
3.WORKING CAPITAL TREND:

Working Capital Provides very important information about the financial condition of the
company for both investor and managements. For investors, it helps them gauge the ability for a
company to get through difficult financial periods. Whereas, for the management members, it
helps them better foresee any financial difficulties that may arise.

Year Working Capital(Y) X x^2 XY Trend

2018 32428 -2 4 -64856 32001.8
2019 30793 -1 1 -30793 30995.1
2020 28600 0 0 0 29988.4
2021 30660 1 1 30660 28981.7
2022 27461 2 4 54922 27975
149942 0 10 -10067 118000

Y= a + bx
a=∑y/n = 149942/5 = 29988.4

b=∑xy/∑x2 = 10067/10=1006.7

2018

Y=29988.4+1006.7(-2)= 32001.8

2019

Y=29988.4+1006.7(-1)= 30995.1

2020

Y=29988.4+1006.7(0)= 29988.4

2021

Y=29988.4+1006.7(1) = 28981.7
2022

Y=29988.4+1006.7(2) = 27975
PREDICTION

2023

Y=29988.4+1006.7 (3) = 26968.3

2024

Y=29988.4+1006.7 (4) = 25961.6

Working Capital Trend

33000
32000
31000
30000
29000
28000
27000
26000
25000
24000
2018 2019 2020 2021 2022
Series1 32428 30793 28600 30660 27461
Series2 32001.8 30995.1 29988.4 28981.7 27975

INTREPRETATION: The above graph shows the Working Capital Trend of the company
from the year 2018 to 2022. In the year 2018, the trend value is 32001.8. In the year 2022, the
trend value hits 27975. In the year 2023, it is expected to increase in the trend value at 26968.3
and in the year 2024, it is expected to increase in the trend value at 25961.6.
5.DIVIDEND TREND:

A dividend is the distribution of a company's earnings to its shareholders and is determined by

the company's board of directors. Dividends are often distributed quarterly and may be paid out
as cash or in the form of reinvestment in additional stock. Dividend analysis gives you a cross-
sectional graphical representation of dividend paying stocks over a ten-year horizon.

Year Dividend x x^2 Xy Trend

2018 10 -2 4 -20 8.9
2019 10.5 -1 1 -10.5 10.55
2020 9.5 0 0 0 12.2
2021 15 1 1 15 13.85
2022 16 2 4 32 15.5
61 0 10 16.5 61

Y= a + bx
a=∑y/n = 61/5 = 12.2

b=∑xy/∑x2 = 16.5/10=1.65
2018

Y=12.2+1.65 (-2)= 8.9

2019

Y=12.2+1.65(-1)= 10.55

2020

Y=12.2+1.65 (0)= 12.2

2021

Y=12.2+1.65 (1) = 13.85

2022

Y=12.2+1.65 (2) = 15.5

PREDICTION

2023

Y=12.2+1.65 (3) = 17.15

2024

Y=12.2+1.65 (4) = 18.8

Dividend Trend
18
16
14
12
10
8
6
4
2
0
2018 2019 2020 2021 2022
Series1 10 10.5 9.5 15 16
Series2 8.9 10.55 12.2 13.85 15.5

INTERPRETATION:

It can be understood from the above data shows the dividend trend analysis from the year 2018
to 2022. In the year 2018 the balance was 8.9 and in the upcoming year the net worth trend
increases gradually and in the year 2022 it increases to 15.5 In the year 2023 and 2024 the
dividend trend is expected to be 17.15 and 18.8 in the upcoming years it may increase and
gradually decrease.
CORRELATION:

Correlation is any statistical relationship, whether causal or not, between two random variables
or bivariate data. Although in the broadest sense, "correlation" may indicate any type of
association, in statistics it usually refers to the degree to which a pair of variables are linearly
related. Familiar examples of dependent phenomena include the correlation between the height
of parents and their offspring, and the correlation between the price of a good and the quantity
the consumers are willing to purchase, as it is depicted in the so-called demand curve.
Correlation measures association, but doesn’t show if X causes Y or vice versa, or if the
association is caused by a third perhaps unseen factor. The correlation coefficient is a value that
indicates the strength of the relationship between variables. The coefficient can take any values
from -1 to 1. The interpretations of values are:

➢ Perfect Negative Correlation. (-1)

➢ No Correlation. (0)

➢ Perfect Positive Correlation.

1.SALES AND NET PROFIT CORRELATION:

Year Sales Net profit x^2 Y^2 XY

2018 65,960.00 16,155.00 4350721600 260984025 1065583800
2019 75,959.00 14,702.00 5769769681 216148804 1116749218
2020 81,747.00 15,543.00 6682572009 241584849 1270593621
2021 88,379.00 18,048.00 7810847641 325730304 1595064192
2022 107,164.00 21,235.00 11484122896 450925225 2275627540
Total 419,209.00 85,683.00 36098033827 1495373207 7323618371

FORMULA:

R = n(∑xy) – (∑x) (∑y) /√ (n∑x2 - ∑(x)2) (n∑y2 - ∑(y)2)

= -142977331880/36735046165.5

= -3.89

INTERPRETATION:

The above data shows the sales and net profit correlation for 2018-2022. The company sales and net profit
correlation is negative r = -3.89.
2.SALES AND DIVIDEND CORRELATION:

Year Sales(X) Dividend(Y) x^2 Y^2 XY

2018 65,960.00 10 4350721600 100 659600
2019 75,959.00 10.5 5769769681 110.25 797569.5
2020 81,747.00 9.5 6682572009 90.25 776596.5
2021 88,379.00 15 7810847641 225 1325685
2022 107,164.00 16 11484122896 256 1714624
Total 419,209.00 61.00 36098033827 781.5 5274075

r = n(∑xy) – (∑x) (∑y) /√ (n∑x2 - ∑(x)2) (n∑y2 - ∑(y)2)

=798626/268587923391
7 = 0.0029

INTERPRETATION:

The above data shows the sales and dividend correlation for 2018-2022.. The company sales and
net profit correlation is positive r = 0.0029

3.NET PROFIT AND DIVIDEND CORRELATION:

Year Net profit(x) Dividend(y) x^2 Y^2 XY
2018 16,155.00 10 260984025 100 161550
2019 14,702.00 10.5 216148804 110.25 154371
2020 15,543.00 9.5 241584849 90.25 147658.5
2021 18,048.00 15 325730304 225 270720
2022 21,235.00 16 450925225 256 339760
Total 85,683.00 61.00 1495373207 781.5 1074059.5

r = n(∑xy) – (∑x) (∑y) /√ (n∑x2 - ∑(x)2) (n∑y2 - ∑(y)2)

=143634.5/5318301.9

=0.027

INTERPRETATION:

The above data shows the dividend and net profit correlation for 2018-2022. The company sales
and net profit correlation is positive r = 0.027

4. EPS AND DPS CORRELATION:

 Year EPS(x) Dividend(y) x^2 Y^2 XY
2018 37.22 10 1385.3284 100 372.2
2019 34.76 10.5 1208.2576 110.25 364.98
2020 37.54 9.5 1409.2516 90.25 356.63
2021 43.07 15 1855.0249 225 646.05
2022 51.17 16 2618.3689 256 818.72
Total 203.76 61.00 8476.2314 781.5 2558.58

r = n(∑xy) – (∑x) (∑y) /√ (n∑x2 - ∑(x)2) (n∑y2 - ∑(y)2)

=407/12657.6

=0.032

INTERPRETATION:

In the above data shows the Earnings per Share and Dividend per Share correlation for the year
2018 to 2022 and the correlation between Earnings Per Share and Dividend Per Share is 0.032.
Positive Correlation

5. WORKING CAPITAL & NET PROFIT CORRELATION:

 Working
Year Net profit(x)
Capital(y) x^2 Y^2 XY
2018 16,155.00 32428 260984025 1051575184 523874340
2019 14,702.00 30793 216148804 948208849 452718686
2020 15,543.00 28600 241584849 817960000 444529800
2021 18,048.00 30660 325730304 940035600 553351680
2022 21,235.00 27461 450925225 754106521 583134335
Total 85,683.00 149,942.00 1495373207 4511886154 2557608841

r = n(∑xy) – (∑x) (∑y) /√ (n∑x2 - ∑(x)2) (n∑y2 - ∑(y)2)

= -59436181/1212987214236.8

= -0.0045

INTERPRETATION:

The above data shows the working capital and net profit correlation for 2018-2022. The company
working capital and net profit correlation is negative r = - 0.0045.

REGRESSION:
A regression is a statistical technique that relates a dependent variable to one or more
independent (explanatory) variables. A regression model is able to show whether changes
observed in the dependent variable are associated with changes in one or more of the explanatory
variables. Also called simple regression or ordinary least squares (OLS), linear regression is the
most common form of this technique. Linear regression establishes the linear relationship
between two variables based on a line of best fit. Linear regression is thus graphically depicted
using a straight line with the slope defining how the change in one variable impacts a change in
the other. The y-intercept of a linear regression relationship represents the value of one variable
when the value of the other is zero. Non-linear regression models also exist, but are far more
complex. Regression analysis is a powerful tool for uncovering the associations between
variables observed in data, but cannot easily indicate causation. It is used in several contexts in
business, finance, and economics. For instance, it is used to help investment manager’s value
assets and understand the relationships between factors such as commodity prices and the stocks
of businesses dealing in those commodities.

FORMULA:

REGRESSION EQUATION X ON Y: X = a + b Y

REGRESSION EQUATION Y ON X: Y = a + b X

1. REGRESSION ANALYSIS ON SALES AND NET PROFIT

 Net
Year Sales(x)
profit(y) x^2 Y^2 XY
2018 65,960.00 16,155.00 4350721600 260984025 1065583800
2019 75,959.00 14,702.00 5769769681 216148804 1116749218
2020 81,747.00 15,543.00 6682572009 241584849 1270593621
2021 88,379.00 18,048.00 7810847641 325730304 1595064192
2022 107,164.00 21,235.00 11484122896 450925225 2275627540
Total 419,209.00 85,683.00 36098033827 1495373207 7323618371

REGRESSION COEFFICIENT X ON Y:
X = a + b Y ∑X = Na + b ∑Y
∑XY = a ∑Y + b∑Y2
Regression Equation: X =
REGRESSION COEFFICIENT Y ON X:
Y = a + b Y ∑Y = Na + b ∑X
∑XY = a ∑X + b∑X2
Regression Equation: Y =

2. REGRESSION ANALYSIS ON SALES AND DIVIDEND :

Year Sales(X) Dividend(Y) x^2 Y^2 XY
2018 65,960.00 10 4350721600 100 659600
2019 75,959.00 10.5 5769769681 110.25 797569.5
2020 81,747.00 9.5 6682572009 90.25 776596.5
2021 88,379.00 15 7810847641 225 1325685
2022 107,164.00 16 11484122896 256 1714624
Total 419,209.00 61.00 36098033827 781.5 5274075

REGRESSION COEFFICIENT X ON Y:
X = a + b Y ∑X = Na + b ∑Y
∑XY = a ∑Y + b∑Y2
Regression Equation: X =
REGRESSION COEFFICIENT Y ON X:
Y = a + b Y ∑Y = Na + b ∑X
∑XY = a ∑X + b∑X2
Regression Equation: Y =
3. REGRESSION ANALYSIS ON NET PROFIT TO DIVIDEND

Net
Year
profit(x) Dividend(y) x^2 Y^2 XY
2018 16,155.00 10 260984025 100 161550
2019 14,702.00 10.5 216148804 110.25 154371
2020 15,543.00 9.5 241584849 90.25 147658.5
2021 18,048.00 15 325730304 225 270720
2022 21,235.00 16 450925225 256 339760
Total 85,683.00 61.00 1495373207 781.5 1074059.5

REGRESSION COEFFICIENT X ON Y:
X = a + b Y ∑X = Na + b ∑Y
∑XY = a ∑Y + b∑Y2
Regression Equation: X =
REGRESSION COEFFICIENT Y ON X:
Y = a + b Y ∑Y = Na + b ∑X
∑XY = a ∑X + b∑X2
Regression Equation: Y=
4. REGRESSION ANALYSIS ON EPS AND DPS:

Year EPS(x) Dividend(y) x^2 Y^2 XY

2018 37.22 10 1385.3284 100 372.2
2019 34.76 10.5 1208.2576 110.25 364.98
2020 37.54 9.5 1409.2516 90.25 356.63
2021 43.07 15 1855.0249 225 646.05
2022 51.17 16 2618.3689 256 818.72
Total 203.76 61.00 8476.2314 781.5 2558.58

REGRESSION COEFFICIENT X ON Y:
X = a + b Y ∑X = Na + b ∑Y
∑XY = a ∑Y + b∑Y2
Regression Equation: X =
REGRESSION COEFFICIENT Y ON X:
Y = a + b Y ∑Y = Na + b ∑X
∑XY = a ∑X + b∑X2
Regression Equation: Y=
 5.REGRESSION ANALYSIS ON WORKING CAPITAL & NET PROFIT:

Working
Year Net profit(x)
Capital(y) x^2 Y^2 XY
2018 16,155.00 32428 260984025 1051575184 523874340
2019 14,702.00 30793 216148804 948208849 452718686
2020 15,543.00 28600 241584849 817960000 444529800
2021 18,048.00 30660 325730304 940035600 553351680
2022 21,235.00 27461 450925225 754106521 583134335
Total 85,683.00 149,942.00 1495373207 4511886154 2557608841

REGRESSION COEFFICIENT X ON Y:
X = a + b Y ∑X = Na + b ∑Y
∑XY = a ∑Y + b∑Y2
Regression Equation: X =
REGRESSION COEFFICIENT Y ON X:
Y = a + b Y ∑Y = Na + b ∑X
∑XY = a ∑X + b∑X2
Regression Equation: Y=
 CHAPTER IV:

FINDINGS AND SUMMARY

 The gross profit for the five years from 2018 to 2022 . In the year 2018 the gross profit of
the company was 32.14. And it started to decrease in the year 2021 and in the year 2022
the gross profit of the company hit by 32.14.
 The Net profit ratio for the five years from 2018 to 2022. In the year 2018 the Net profit
Ratio of the company was 26.08 . And it started to decrease in the year 2021 and in the
year 2022 the Net profit ratio of the company hit by 20.43.
 The Return on equity for the five years from 2018 to 2022. In the year 2018 Return on
equity of the company was 0.25 . And it started to increase in the year 2021 and in the
year 2022 the Net profit ratio of the company hit by 0.31.
 The return on investment ratio for the years 2018 to 2022 . In the year 2018 ROI is 25.44
and it increases in the year 2020 to 25.23 and it increases and hits 30.64 in the year 2022 .
 The equity ratio for the company for the year from 2018 to 2022 . In the year 2018 the
equity ratio of the company is 0.84 and it gradually decreases and in the equity ratio of
the company hits 0.70 in the year 2022.
 The debt to equity ratio for the company for the year from 2018 to 2022 . In the year
2018 the equity ratio of the company is 0.19 and it gradually increases and in the equity
ratio of the company hits 0.43 in the year 2022
 The total debts and total assets ratio for the company for the year from 2018 to 2022. In
the year 2018 the total debts and total assets ratio of the company is 0.16 and it gradually
increases , the total debts and total assets ratio of the company hits 0.30 in the year 2022.
 The current ratio of the company for the year from 2018 to 2022 . In the year 2018 the
current ratio of the company is 3.78 and it gradually decreases and the current ratio of the
company hits 2.1 in the year 2022
 The absolute liquid ratio of the company for the year from 2018 to 2022 . In the year
2018 the P absolute liquid ratio 4of the company is 7.03 and it gradually decreases and
the Proprietary Ratio of the company hits 4.71 in the year 2022
 The Proprietary Ratio of the company for the year from 2018 to 2022 . In the year 2018
the Proprietary Ratio of the company is 7.03 and it gradually decreases and the
Proprietary Ratio of the company hits 4.71 in the year 2022
 The Trade receivables ratio of the company for the year from 2018 to 2022 . In the year
2018 the Trade receivables ratio of the company is 10.2 and it gradually increases and
decreases and Trade receivables ratio of the company hits 10.96 in the year 2022.
 The fixed assets turnover ratio for the company for the year from 2018 to 2022. In the
year 2018 the fixed assets turnover ratio of the company is 11.69 and it gradually
increases and the equity ratio of the company hits 13.54 in the year 2022.
 The Capital turnover of the company for the year from 2018 to 2022. In the year 2018 the
Capital turnover of the company is 0.98 and it gradually increases and decreases and
Trade receivables ratio of the company hits 1.5 in the year 2022.
 The Working capital turnover ratio of the company for the year from 2018 to 2022 . In
the year 2018 the working capital ratio of the company is 1.91 and it gradually increases
working capital turnover ratio of the company hits 3.79 in the year 2022.
 The Earnings per share of the company for the year from 2018 to 2022 . In the year 2018
the Earnings per share of the company is 37.22 and it gradually increase and decreases
and Earnings per share of the company hits 51.17 in the year 2022.
 The sales trend analysis from the year 2018 to 2022. In the year 2018 the balance was
64876.2 and in the upcoming year the sales increases gradually and in the year 2022 it
increases to 102807.4 .In the year 2023 and 2024 the sales trend is expected to be
112290.2 and 121773 in the upcoming years it may increase and gradually decrease.
 The Net profit trend analysis from the year 2018 to 2022. In the year 2018 the balance
was 14435.4 and in the upcoming year the sales increases gradually and in the year 2022
it increases to 19837.8 .In the year 2023 and 2024 the sales trend is expected to be
21188.4 and 22539 in the upcoming years it may increase and gradually decrease.
 The above data shows the Net worth trend analysis from the year 2018 to 2022. In the
year 2018 the balance was 62211 and in the upcoming year the sales increases gradually
and in the year 2022 it increases to 65531.9 .In the year 2023 and 2024 the sales trend is
expected to be 78815.5 and 82136.4 in the upcoming years it may increase and gradually
decrease.
 The Working Capital Trend of the company from the year 2018 to 2022. In the year
2018, the trend value is 32001.8. In the year 2022, the trend value hits 27975. In the year
 2023, it is expected to increase in the trend value at 26968.3 and in the year 2024, it is
expected to increase in the trend value at 25961.6.
 The dividend trend analysis from the year 2018 to 2022. In the year 2018 the balance was
8.9 and in the upcoming year the net worth trend increases gradually and in the year 2022
it increases to 15.5 In the year 2023 and 2024 the dividend trend is expected to be 17.15
and 18.8 in the upcoming years it may increase and gradually decrease.
 The sales and net profit correlation for 2018-2022. The company sales and net profit correlation is
negative r = -3.89.

 The sales and dividend correlation for 2018-2022. The company sales and net profit
correlation is positive r = 0.0029
 The dividend and net profit correlation for 2018-2022. The company sales and net profit
correlation is positive r = 0.027
 The Earnings per Share and Dividend per Share correlation for the year 2018 to 2022 and
the correlation between Earnings Per Share and Dividend Per Share is 0.032. Positive
Correlation
 The working capital and net profit correlation for 2018-2022. The company working
capital and net profit correlation is negative r = - 0.0045.

 Conclusion

Infosys is a fundamentally strong company. It has strong fundamentals, which can be seen in the
Balance sheet, Income sheet, and Cash flow statements, and the analysis above. It has higher
profitability than its competitors. It has a 74 million Market Capitalization which better than
most of its competitors in the industry. It has strong cash flows even during the pandemic, which
has affected most organizations around the world. The revenue has been growing at a small rate
compared to the previous years, but it's a vital sign of the company's stability amidst this
pandemic. In the past, specifically from 2020, the company has started taking more considerable
risks by taking on debts and managing them better. We could also see a decrease in its accounts
receivables, which further signifies that the company is paying vendors at a later stage than the
previous years. Infosys is trying to manage its debt better to finance it for operational activities,
which would enhance its profitability and growth. As an investor where people find it reasonably
risky to invest due to volatility and the instability in the markets, it could act as a pretty stable
investment that could give profits in the longer run. As per the company's annual report, it has
been impacted by the pandemic in terms of workforce, delays in approvals from the clients for
the project, and various other factors. But it is managing its cash flow and maintaining its levels.

Recommendation

Infosys Technologies is the perfect case of a firm that could benefit from a value-enhancing
strategy. The firm currently has meager debts, which they started undertaking in the year
2020,and its value would increase substantially if it were to take on a small amount of
leverage—Infosys in its current state. If Infosys were to raise its debt ratio to 11.5% versus its
current 4 %,its beta would increase, but its cost of capital would decrease. Hence, either
incumbent or new management would increase the value of Infosys by $1.36 billion by altering
the capital structure.
BALANCE SHEET OF INFOSYS (in Rs. Cr.) 18-Mar 19-Mar 20-Mar 21-Mar 22-Mar
12 mths 12 mths 12 mths 12 mths 12 mths
EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share Capital 1,092.00 2,178.00 2,129.00 2,130.00 2,103.00
TOTAL SHARE CAPITAL 1,092.00 2,178.00 2,129.00 2,130.00 2,103.00
Reserves and Surplus 62,410.00 60,533.00 59,808.00 69,029.00 66,597.00
TOTAL RESERVES AND SURPLUS 62,410.00 60,533.00 59,808.00 69,029.00 66,597.00
TOTAL SHAREHOLDERS FUNDS 63,502.00 62,711.00 62,234.00 71,531.00 69,306.00
NON-CURRENT LIABILITIES
Long Term Borrowings 0 0 0 0 0
Deferred Tax Liabilities [Net] 505 541 556 511 841
Other Long Term Liabilities 208 248 3,031.00 4,275.00 4,264.00
Long Term Provisions 0 0 0 0 0
TOTAL NON-CURRENT LIABILITIES 713 789 3,587.00 4,786.00 5,105.00
CURRENT LIABILITIES
Short Term Borrowings 0 0 0 0 0
Trade Payables 738 1,604.00 1,529.00 1,562.00 2,669.00
Other Current Liabilities 10,488.00 13,321.00 13,185.00 15,399.00 21,387.00
Short Term Provisions 436 505 506 661 920
TOTAL CURRENT LIABILITIES 11,662.00 15,430.00 15,220.00 17,622.00 24,976.00
TOTAL CAPITAL AND LIABILITIES 75,877.00 78,930.00 81,041.00 93,939.00 99,387.00
ASSETS
NON-CURRENT ASSETS
Tangible Assets 9,027.00 10,394.00 13,897.00 14,365.00 14,695.00
Intangible Assets 130 103 77 234 243
Capital Work-In-Progress 1,442.00 1,212.00 945 906 411
Other Assets 0 0 0 0 0
FIXED ASSETS 10,599.00 11,709.00 14,919.00 15,505.00 15,349.00
Non-Current Investments 11,993.00 12,062.00 13,916.00 22,118.00 22,869.00
Deferred Tax Assets [Net] 1,128.00 1,114.00 1,429.00 955 970
Long Term Loans And Advances 19 16 298 30 34
Other Non-Current Assets 8,048.00 7,806.00 6,659.00 7,049.00 7,728.00
TOTAL NON-CURRENT ASSETS 31,787.00 32,707.00 37,221.00 45,657.00 46,950.00
CURRENT ASSETS
Current Investments 5,906.00 6,077.00 4,006.00 2,037.00 5,467.00
Inventories 0 0 0 0 0
Trade Receivables 12,151.00 13,370.00 15,459.00 16,394.00 18,966.00
Cash And Cash Equivalents 16,770.00 15,551.00 13,562.00 17,612.00 12,270.00
Short Term Loans And Advances 393 1,048.00 307 229 219
OtherCurrentAssets 8,870.00 10,177.00 10,486.00 12,010.00 15,515.00
TOTAL CURRENT ASSETS 44,090.00 46,223.00 43,820.00 48,282.00 52,437.00
TOTAL ASSETS 75,877.00 78,930.00 81,041.00 93,939.00 99,387.00
PROFIT & LOSS ACCOUNT OF INFOSYS (in Rs. 18-Mar 19-Mar 20-Mar 21-Mar 22-Mar
Cr.)
12 mths 12 mths 12 mths 12 mths 12 mths
INCOME
REVENUE FROM OPERATIONS [GROSS] 61,941.00 73,107.00 79,047.00 85,912.00 103,940.00
Less: Excise/Sevice Tax/Other Levies 0 0 0 0 0
REVENUE FROM OPERATIONS [NET] 61,941.00 73,107.00 79,047.00 85,912.00 103,940.00
TOTAL OPERATING REVENUES 61,941.00 73,107.00 79,047.00 85,912.00 103,940.00
Other Income 4,019.00 2,852.00 2,700.00 2,467.00 3,224.00
TOTAL REVENUE 65,960.00 75,959.00 81,747.00 88,379.00 107,164.00
EXPENSES
Cost Of Materials Consumed 0 0 0 0 0
Purchase Of Stock-In Trade 0 0 0 0 0
Operating And Direct Expenses 6,764.00 12,633.00 13,791.00 13,533.00 21,958.00
Changes In Inventories Of FG,WIP And Stock-In Trade 0 0 0 0 0
Employee Benefit Expenses 32,472.00 38,296.00 42,434.00 45,179.00 51,664.00
Finance Costs 0 0 114 126 128
Depreciation And Amortisation Expenses 1,408.00 1,599.00 2,144.00 2,321.00 2,429.00
Other Expenses 5,408.00 3,504.00 2,787.00 2,743.00 2,490.00
TOTAL EXPENSES 46,052.00 56,032.00 61,270.00 63,902.00 78,669.00
PROFIT/LOSS BEFORE EXCEPTIONAL, 19,908.00 19,927.00 20,477.00 24,477.00 28,495.00
EXTRAORDINARY ITEMS AND TAX
Exceptional Items 0 0 0 0 0
PROFIT/LOSS BEFORE TAX 19,908.00 19,927.00 20,477.00 24,477.00 28,495.00
TAX EXPENSES-CONTINUED OPERATIONS
Current Tax 4,003.00 5,189.00 5,235.00 6,013.00 6,960.00
Less: MAT Credit Entitlement 0 0 0 0 0
Deferred Tax -250 36 -301 416 300
Tax For Earlier Years 0 0 0 0 0
TOTAL TAX EXPENSES 3,753.00 5,225.00 4,934.00 6,429.00 7,260.00
PROFIT/LOSS AFTER TAX AND BEFORE 16,155.00 14,702.00 15,543.00 18,048.00 21,235.00
EXTRAORDINARY ITEMS
PROFIT/LOSS FROM CONTINUING OPERATIONS 16,155.00 14,702.00 15,543.00 18,048.00 21,235.00
PROFIT/LOSS FOR THE PERIOD 16,155.00 14,702.00 15,543.00 18,048.00 21,235.00