Piyush Atri

Himanshu Mathur
Akshay Kumar
Akshay Kumar Ratios
Piyush Atri Liquidity Ratios Based on
1 Current Ratio BS
2 Quick Ratio BS
3 Cash Ratio BS
Akshay Kumar Leverage Ratios
1 Debt-to-Equity Ratio BS
2 Debt Ratio BS
3 Equity Ratio BS
4 Interest Coverage Ratio PL
5 Debt Service Coverage Ratio PL
Kunal Gupta Profitability Ratios
1 Gross Profit Margin PL
2 Operating Profit Margin PL
3 Net Profit Margin PL
4 Return on Assets (ROA) PL & BL
5 Return on Equity (ROE) PL
6 Return on Investment (ROI) PL & BS
7 Return on Capital Employed (ROCE) PL & BS
Himanshu Mathur Efficiency Ratios
1 Asset Turnover Ratio PL & BS
2 Inventory Turnover Ratio PL & BS
3 Receivables Turnover Ratio PL & BS
4 Days Sales Outstanding (DSO) PL & BS
5 Days Inventory Outstanding (DIO) PL & BS
6 Days Payable Outstanding (DPO) PL & BS
Market Ratios
1 Earnings Per Share (EPS) PL
Piyush Atri 2 Price-to-Earnings Ratio (P/E) PL
3 Price-to-Book Ratio (P/B) PL
4 Dividend Yield PL
5 Dividend Payout Ratio PL
Himanshu Mathur
Himanshu Mathur
6 Price-to-Sales Ratio (P/S) BS
7 Market-to-Book Ratio PL
Coverage Ratios
1 Fixed Charge Coverage Ratio PL
Kunal Gupta
2 Times Interest Earned (TIE) PL
 Ratios
Formulaes 3/31/2023 0:00:00 3/31/2022 0:00:00
Current Assets / Current Liabilities 2.530 2.577
(Current Assets - Inventory) / Current Liabilities 2.530 2.570
Cash and Cash Equivalents / Current Liabilities 0.160 0.300

Total Debt / Total Equity 0.5750169945 0.5750729025

Total Debt / Total Assets 0.3650862159 0.3651087525
Total Equity / Total Assets 0.6349137841 0.6348912475
EBIT / Interest Expenses 72.780 68.250
Net Operating Income / Total Debt Service 25.450 22.820

Gross Profit / Revenue 99.17% 99.39%

Operating Income / Revenue 24.86% 26.40%
Net Income / Revenue 18.48% 19.64%
Net Income / Total Assets 29.45% 27.17%
Net Income / Total Equity 46.38% 42.79%
(Gain from Investment - Cost of Investment) / Cost of Investment
EBIT / Capital Employed 56.85% 52.12%

Revenue / Total Assets 1.570 1.380

Cost of Goods Sold / Average Inventory 7117.000 7146.000
Net Credit Sales / Average Accounts Receivable 4.800 4.370
(Average Accounts Receivable / Net Credit Sales) * 365 76 days 83 days
(Average Inventory / Cost of Goods Sold) * 365 0.05 days 0.05 days
(Average Accounts Payable / Cost of Goods Sold) * 365 20.49 days 22.11 days

Net Income / Number of Outstanding Shares 117.180 103.650

Market Price per Share / Earnings per Share 27.300 28.940
Market Price per Share / Book Value per Share 12.920 12.450
Annual Dividends per Share / Market Price per Share 2.50% 2.50%
Dividends / Net Income 68.27% 72.38%
Market Capitalization / Revenue 5.120 5.620
Market Value / Book Value 12.810 12.420

(EBIT + Fixed Charges) / (Fixed Charges + Interest Expenses) 19.670 17.910

EBIT / Interest Expense 73.770 69.220
 TCS Accounting
Comment (Being a CFO/CEO)
Policies for TCS
Current ratio has decreased on yearly basis showing the decrease in ability of the company to pay short term debt although it is greater than 1 so there is
Quick ratio has decreased on yearly basis showing the decrease in ability of the company to pay short term debt withut relying on sale of inventory. Altho
Measures the ability to payoff short term debt via cash and cash equivalent. Slight reduction in it indicates reduction in Cash and euivalents.

Decrease in debt to equity ratio for the company so company has startd using more of its own funds to finance business operations and indication of redu
Due to less borrowing, the debt ratio has decreased for the following year showing increase in its ability for finance its own operations and indication of re
Increase in equity ratio shows company assets are financed by shareholders equity rather than debt and indicating improvement in the financial health.
Increase in interest ratio shows greater abilty to meet interest payments obiligations. Hence improving its financial health.
Increase in Debt Service Coverage Ratio shows greater abilty to service debt from operating income. Hence improving its financial health.

Increase in Gross Profit Margin shows better control and efficiency in COGS.
Decrease in Operating Profit Margin shows increase in operating cost OR non-operating or both are too high.
Decrease in Operating Profit Margin indicate ineffective cost structure and/or poor pricing strategies
Increase in Return on Assets (ROA) shows that company is able leverage its assests better.
Increase in Return on Equity (ROE) shows that company is able leverage its shareholders equity to generate profit.

Increase in Return on Capital Employed (ROCE) shows that company is efficiently deploying capital and generate profits.

Increase in Asset Turnover Ratio shows that company is efficiently generatingrevenue using assests.
Lower Inventory Turnover Ratio shows week sales
Increase in Receivables Turnover Ratio shows efficient Collection for the company
Decrease in Days Sales Outstanding (DSO) again shows efficient Collection for the company
No change in Days Inventory Outstanding (DIO) shows inventory is being sold at the same rate.
Reduction in Days Payable Outstanding (DPO) indicates the company is not fully utilizing its credit period offered by creditors or it has short term debt arr

Increase in Earnings Per Share (EPS) shows greater profitability for the company.
Decrease in Price-to-Earnings Ratio (P/E) indicates reduction in stock prices
Increase in Price-to-Book Ratio (P/B) shows that stocks are trading at a premium
No change in Dividend Yield
Lower Dividend Payout Ratio indicates that a company is reinvesting the bulk of its earnings into expanding operations.
Decrease in Price-to-Sales Ratio (P/S) indicates that stocks is slightly being undervalued by investors
Increase in Market Value / Book Value shows higher investors confidence

Increase in Fixed Charge Coverage Ratio shows higher ability to cover fixed charges such as Interest payment, Lease fees etc
Increase in Times Interest Earned (TIE) shows better ability to meet interest obligations from earnings hence lower risk of default.
 CSR
CSR activities Comment Infosys Accounting activities
performed by ### ### (Being a Policies for
performed by
TCS
is greater than 1 so there is enough liquidity to pay short term debt.CFO/CEO) Infosys
g on sale of inventory. Although it is greater than 1 so there is enough liquidity to pay short term debt. Infosys
nd euivalents.

ations and indication of reduction in financial risk.

erations and indication of reduction in financial risk.
ent in the financial health.

ncial health.

or it has short term debt arrangement.

Comment
over CSR
Key Differences/ meaning of these ratios
Liquidity Ratios
Current Ratio measures the company's ability to cover its short-term obligations with its current assets. It includes all current assets
Quick Ratio (or Acid-Test Ratio) excludes inventory from current assets, providing a more stringent measure of liquidity.
Cash Ratio further narrows down to only cash and cash equivalents, offering the most conservative view of liquidity.
Leverage Ratios
Debt-to-Equity Ratio compares the total debt to total equity, indicating the relative proportion of shareholder equity and debt used
Debt Ratio shows the proportion of a company’s assets that are financed by debt.
Equity Ratio reflects the proportion of total assets financed by shareholders' equity.
Interest Coverage Ratio measures how easily a company can pay interest on its outstanding debt using its earnings before interest
Debt Service Coverage Ratio assesses the company's ability to service its entire debt obligations, including principal repayments, w
Profitability Ratios
Gross Profit Margin focuses on the profitability from core operations before deducting operating expenses, interest, and taxes.
Operating Profit Margin includes operating expenses but excludes interest and taxes.
Net Profit Margin considers all expenses, providing the bottom-line profitability.
Return on Assets (ROA) indicates how efficiently a company uses its assets to generate profit.
Return on Equity (ROE) shows the return generated on shareholders' equity.
Return on Investment (ROI) measures the gain or loss generated on an investment relative to its cost.
Return on Capital Employed (ROCE) evaluates the returns generated from all capital employed, including both equity and debt.
Efficiency Ratios
Asset Turnover Ratio measures how efficiently a company uses its assets to generate revenue.
Inventory Turnover Ratio indicates how frequently inventory is sold and replaced over a period.
Receivables Turnover Ratio assesses how effectively a company collects on its receivables.
Days Sales Outstanding (DSO) measures the average number of days it takes to collect payment after a sale.
Days Inventory Outstanding (DIO) indicates the average number of days inventory remains unsold.
Days Payable Outstanding (DPO) shows the average number of days it takes to pay suppliers.
Market Ratios
Earnings Per Share (EPS) reflects the portion of a company's profit allocated to each outstanding share of common stock.
Price-to-Earnings Ratio (P/E) compares a company's share price to its earnings per share.
Price-to-Book Ratio (P/B) compares a company's market value to its book value.
Dividend Yield indicates how much a company pays out in dividends each year relative to its share price.
Dividend Payout Ratio shows the proportion of earnings paid out as dividends.
Price-to-Sales Ratio (P/S) compares the company’s market capitalization to its revenue.
Market-to-Book Ratio compares the market value of a company to its book value.
Coverage Ratios
Fixed Charge Coverage Ratio includes both interest and fixed charges, like lease payments, assessing the ability to cover all fixed
Times Interest Earned (TIE) focuses solely on the ability to cover interest expenses with EBIT.
 Ratios 2022-23
Liquidity Ratios Formulaes For TCS
1 Current Ratio Current Assets / Current Liabilities
2 Quick Ratio (Current Assets - Inventory) / Current Liabilities
3 Cash Ratio Cash and Cash Equivalents / Current Liabilities
Leverage Ratios
1 Debt-to-Equity Ratio Total Debt / Total Equity
2 Debt Ratio Total Debt / Total Assets
3 Equity Ratio Total Equity / Total Assets
4 Interest Coverage Ratio EBIT / Interest Expenses
5 Debt Service Coverage Ratio Net Operating Income / Total Debt Service
Profitability Ratios
1 Gross Profit Margin Gross Profit / Revenue
2 Operating Profit Margin Operating Income / Revenue
3 Net Profit Margin Net Income / Revenue
4 Return on Assets (ROA) Net Income / Total Assets
5 Return on Equity (ROE) Net Income / Total Equity
6 Return on Investment (ROI) (Gain from Investment - Cost of Investment) / Cost of Investment
7 Return on Capital Employed (ROCE) EBIT / Capital Employed
Efficiency Ratios
1 Asset Turnover Ratio Revenue / Total Assets
2 Inventory Turnover Ratio Cost of Goods Sold / Average Inventory
3 Receivables Turnover Ratio Net Credit Sales / Average Accounts Receivable
4 Days Sales Outstanding (DSO) (Average Accounts Receivable / Net Credit Sales) * 365
5 Days Inventory Outstanding (DIO) (Average Inventory / Cost of Goods Sold) * 365
6 Days Payable Outstanding (DPO) (Average Accounts Payable / Cost of Goods Sold) * 365
Market Ratios
1 Earnings Per Share (EPS) Net Income / Number of Outstanding Shares
2 Price-to-Earnings Ratio (P/E) Market Price per Share / Earnings per Share
3 Price-to-Book Ratio (P/B) Market Price per Share / Book Value per Share
4 Dividend Yield Annual Dividends per Share / Market Price per Share
5 Dividend Payout Ratio Dividends / Net Income
6 Price-to-Sales Ratio (P/S) Market Capitalization / Revenue
7 Market-to-Book Ratio Market Value / Book Value
Coverage Ratios
1 Fixed Charge Coverage Ratio (EBIT + Fixed Charges) / (Fixed Charges + Interest Expenses)
2 Times Interest Earned (TIE) EBIT / Interest Expense
 2022-23
For Infosys
1. Revenue Recognition

Accrual Basis: Revenue is recognized when earned, regardless of when payment is received. This
method matches revenues with the expenses incurred to generate them, providing a more
accurate picture of financial performance.

Cash Basis: Revenue is recognized when cash is received. This method is simpler but may not
reflect the true financial health of a business if there are significant time gaps between earning
revenue and receiving payment.

3. Depreciation Methods
Straight-Line Depreciation: Spreads the cost of an asset evenly over its useful life. This method is
simple and results in consistent expense recognition each year.
Declining Balance Depreciation: Accelerates depreciation, with higher expenses in the earlier
years of an asset's life. This method can be useful for assets that lose value quickly.
Units of Production Depreciation: Depreciates assets based on usage or output. This method
matches expenses with the actual use of the asset.

5. Lease Accounting
Operating Lease: Treated as a rental expense, with lease payments recognized as operating
expenses on the income statement.
Finance Lease: Treated as an acquisition of an asset, with the asset and corresponding liability
recorded on the balance sheet. Lease payments are split between interest expense and reduction
of
7. the lease Currency
Foreign liability.
Translation
Current Rate Method: All assets and liabilities are translated at the current exchange rate at the
balance sheet date, while income statement items are translated at the average exchange rate for
the period.
Temporal Method: Monetary assets and liabilities are translated at the current exchange rate,
while non-monetary items are translated at historical rates.
2. Inventory Valuation
First-In, First-Out (FIFO): Assumes that the oldest inventory items are sold first. During inflation, FIFO
results in lower cost of goods sold (COGS) and higher net income.

Last-In, First-Out (LIFO): Assumes that the most recently acquired inventory items are sold first. During
inflation, LIFO results in higher COGS and lower net income, potentially reducing tax liability.

Weighted Average Cost: Calculates COGS and ending inventory based on the average cost of all
inventory items available for sale during the period.

4. Expense Recognition
Accrual Basis: Expenses are recognized when incurred, regardless of when they are paid. This method
matches expenses with the revenues they help generate.

Cash Basis: Expenses are recognized when they are paid. This method is simpler but may not
accurately reflect the timing of expenses related to revenue generation.

6. Goodwill and Intangible

Assets
Amortization: Spreading the cost of intangible assets over their useful lives. This method is similar to
depreciation but applies to non-physical assets.
Impairment Testing: Assessing whether the carrying amount of goodwill and other intangibles exceeds
their fair value, and if so, recording an impairment loss.

8. Provisions and Contingencies

Recognition Criteria: Provisions are recognized when there is a present obligation as a result of past
events, and it is probable that an outflow of resources will be required to settle the obligation.

Measurement: Provisions are measured at the best estimate of the expenditure required to settle the
present obligation.
Different accounting policies can significantly impact the financial statements and overall financial
health of a company. It's important for stakeholders to understand these policies to make informed
decisions.
 Balance Sheet
TCS
3/31/2023
EQUITY AND LIABILITIES
Equity
Share Capital 366
Other equity 90,058
Equity attributable to shareholders of the Company 90,424

Non-controlling interests 782

Total equity 91,206
Liabilities
Non-current liabilities
Financial liabilities
Lease liabilities 6,203
Other financial liabilities 353
Employee benefit obligations 536
Deferred tax liabilities (net) 792
Unearned and deferred revenue 1,003
Total non-current liabilities 8,887
Current liabilities
Financial liabilities
Lease liabilities 1,485
Trade payables 10,515
Other financial liabilities 9,068
Unearned and deferred revenue 3,843
Other liabilities 4,892
Provisions 345
Employee benefit obligations 4,065
Income tax liabilities (net) 9,345
Total current liabilities 43,558
TOTAL EQUITY AND LIABILITIES 143,651

ASSETS
Non-current assets
Property, plant and equipment 10,230
Capital work-in-progress 1,234
Right-of-use assets 7,560
Goodwill 1,858
Other intangible assets 867
Financial assets
Investments 266
Trade receivables
Billed 149
Unbilled 199
Loans 173
Other financial assets 2,149
Income tax assets (net) 2,583
Deferred tax assets (net) 3,307
Other assets 2,806
Total non-current assets 33,381
Current assets
Inventories 28
Financial assets
Investments 36,897
Trade receivables
Billed 41,049
Unbilled 8,905
Cash and cash equivalents 7,123
Other balances with banks 3,909
Loans 1,325
Other financial assets 1,319
Income tax assets (net) 8
Other assets 9,707
Total current assets 110,270
TOTAL ASSETS 143,651
-
NOTES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS
As per our report of even date attached
 Profit & Loss
TCS
3/31/2022 Particulars
Revenue from operations
Other income
366 TOTAL INCOME
88,773 Expenses
89,139 Employee benefit expenses
Cost of equipment and software licences
707 Finance costs
89,846 Depreciation and amortisation expense
Other expenses
TOTAL EXPENSES

6,368 PROFIT BEFORE TAX

572 Tax expense
677 Current tax
590 Deferred tax
1,110 TOTAL TAX EXPENSE
9,317 PROFIT FOR THE YEAR

OCI
1,450
8,045 Total Profit
Profit including
for the OCI
year attributable to:
7,687 Shareholders of the Company
3,635
8,392 Non-controlling interests
1,411 Weighted Avg No of Shares o/s
3,810
7,921 EPS (Earning Per Share)
42,351
141,514

10,774
1,205
7,636
1,787
1,101

223

145
55
311
2,253
 1,983
3,708
2,023
33,204

20

30,262

34,074
7,736
12,488
5,733
6,445
1,390
11
10,151
108,310
141,514
-
& Loss
CS Year ended Year ended
March 31, March 31,
2023
225458 2022
191754
3449 4018
228907 195772

127,522 107,554
1,881 1,163
779 784
5,022 4,604
36,796 29,980
172,000 144,085

56,907 51,687

14757 13654
-153 -416
14604 13238
42,303 38,449

492 -95

42,795 38,354

42,147 38,327
156 122
365.91 369.88

115.19 103.62
Balance Sheet Profit & Loss
Infosys Infosys Year
ended
Particulars
March
Revenue from operations 1,24,014
31, 2023
Other income 3,859
TOTAL INCOME 1,27,873 1,07,164
Expenses
Employee benefit expenses
Cost of equipment and software licences
Finance costs 157
Depreciation and amortisation expense
Other expenses
TOTAL EXPENSES

PROFIT BEFORE TAX

Tax expense
Current tax
Deferred tax
TOTAL TAX EXPENSE
PROFIT FOR THE YEAR

OCI

Total Profit
Profit including
for the OCI
year attributable to:
Shareholders of the Company

Non-controlling interests
Weighted Avg No of Shares o/s

EPS (Earning Per Share)

 Year
ended
March
1,03,940
31, 2022
3,224
1,27,873 1,07,164

128