RVS INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

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1 FINANCIAL STATEMENT ANALYSIS FOR M/s. HONEYWELL AUTOMATION LTD. PROJECT REPORT Submitted by : VIJAY N Register Number : 1P16MB065 Academic Year : RVS INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH RVS COLLEGE OF ARTS AND SCIENCE (AUTONOMOUS) Sulur, Coimbatore Tamilnadu, INDIA

2 CERTIFICATE This is to certify that the Project report done in for the company HONEYWELL AUTOMATION submitted in partial fulfillment of the requirements for the course Financial Reporting and Analysis, is a record of original work done by Mr. VIJAY N during First semester in RVS Institute of Management Studies and Research, RVS College of Arts and Science (Autonomous), Coimbatore , under my supervision and guidance. Date: Director Course Coordinator

3 Common Size Income Statement Profit & Loss account of Honeywell Automation in Rs. Cr Mar-15 Dec-15 FY16 FY16 INCOME Revenue From Operations [Gross] 2, , , , Less: Excise/Sevice Tax/Other Levies Revenue From Operations [Net] 2, , , , Other Operating Revenues Total Operating Revenues 2, , , , Other Income Total Revenue 2, , , , EXPENSES Cost Of Materials Consumed 1, , Purchase Of Stock-In Trade Changes In Inventories Of FG,WIP And Stock-In Trade Employee Benefit Expenses Finance Costs Depreciation And Amortisation Expenses Other Expenses Total Expenses 1, , , , Inference of Common size Income statement Net sales : for the year ended 2015 the company got a sales of Rs. 2210cr which in the next year company got a good increase in case of sales which in 2016 ;Rs. 1725cr.. so in case of sales the company maintains a good level of growth. Total Income : company gets an total income of Rs.2403 cr which is far better than the previous year Rs.( ) cr which shows the companys growth in sales. Total Expenses : (Raw materials, power& fuel cost, employee cost, manufacturing expenses, misc expenses.. etc) which the company incurs during the year 2016 is slightly more than the previous year (2015 : 2,187, 2016 : )

4 When we talk about the Operating Profit for the 2 years, there we can see a good growth in the coming years. the profit in 2015 was Rs.1, cr but in the next year company earned a growth to Rs cr. after deducting the respective expenses like depreciation,, tax, corporate dividend tax we gets a reported net profit of Rs cr in the year 2016 which is greater than the preceding year and so we call net profit of a company as the scale for measuring the growth of a company for the shareholders so here the shareholder gets a good margin of profit for the company Common Size Balance Sheet of HONEYWELL AUTOMATION Balance Sheet of Honeywell Automation in Rs. Cr Mar-15 Dec-15 Dec-14 Dec-14 Equity Share Capital Total Share Capital Reserves and Surplus 1, Total Reserves and Surplus 1, Total Shareholders Funds 1, Long Term Provisions Total Non-Current Liabilities CURRENT LIABILITIES Trade Payables Other Current Liabilities Short Term Provisions Total Current Liabilities Total Capital And Liabilities 1, , , , Tangible Assets Intangible Assets Capital Work-In-Progress Fixed Assets Deferred Tax Assets [Net] Long Term Loans And Advances Other Non-Current Assets Total Non-Current Assets CURRENT ASSETS Current Investments Inventories Trade Receivables Cash And Cash Equivalents

5 Short Term Loans And Advances OtherCurrentAssets Total Current Assets 1, , , Total Assets 1, , , , Inference of common size Balance sheet Total share capital& reserves: For the year ended 2015 company acquired a share capital of 8.84 and for the year 2016 it was 8.84 CR. Which means only a small difference is a Happened in case of share capital. For Honeywell Automation no much more capital was introduced. Company keep s a good amount of reserves. Total liabilities: in case of total liabilities the company owes an amount of 1780 CR in 2014,but in the end of 2015 the liabilities of the company increased to 1476 CR. that means company have to take necessary steps to reduce the burden of liabilities Net block: MPHASIS made huge investments in buying or renewing Fixed assets because the company had only cr in But in the year ending 2015 the company increased fixed assets value to than the previous year. Investments: In 2015 the company doesn t had much interest in making investments but in the year of 2016 the company made bigger investments for the future growth (2014: : ) Current assets : current assets like inventories,cash & bank balance,debtors in 2015 is decreasing in respect of the previous year So the company have to give more attention in these all. But the total value of assets during the year 2014 is 1448 cr and for the preceeding year is 1135 cr which means the company is developing year after year.

6 CASH FLOW ANALYSIS COMMONSIZE CASH FLOW STATEMENT OF HONEYWELL AUTOMATION Cash Flow of Honeywell Automation in Rs. Cr Mar-15 Apr-14 Net Profit/Loss Before Extraordinary Items And Tax Net CashFlow From Operating Activities Net Cash Used In Investing Activities Net Cash Used From Financing Activities Net Inc/Dec In Cash And Cash Equivalents Cash And Cash Equivalents Begin of Year Cash And Cash Equivalents End Of Year ANALYSIS : While analyzing the cash flow statement Honeywell Automation Company we can analyze the cash inflow and outflow from operating, investing and financial activities. Operating activities has decreased as in this period as the company has reduced its operating activities. The company has seen a decline over the period of time. This means that the company has invested in some asset The financing activities have reduced as the company would have availed loan or would have borrowed from debtors. Comment about the Company Honeywell International, Inc. is an American multinational conglomerate company that produces a variety of commercial and consumer products, engineering services and aerospace systems for a wide variety of customers, from private consumers to major corporations and governments. The company operates three business units, known as Strategic Business Units Honeywell Aerospace, Honeywell Automation and Control Solutions, and Honeywell Performance Materials and Technologies. Honeywell is a Fortune 100 company. In 2016, Honeywell ranked 75th in the Fortune 500.Honeywell has a global workforce of approximately 130,000, of whom approximately 58,000 are employed in the United States

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