Financial
Statement Analysis
Blue
Diamonds Jewellery Worldwide PLC
Introduction
This
comprehensive analysis of financial statements for “Blue Diamonds Jewellery
Worldwide PLC” that specifically looks at the statement of financial position
and the income statement from 2013 to 2017 . Trend analysis, Vertical analysis,
Horizontal analysis and a ratio analysis has conducted from 2013 to 2017 by
highlighting the specific standalone elements and specific behavioral trends
within the five years period.
In the end
of the analysis it gives an insight about how the organization manages its
liquidity and efficiency, solvency, profitability and market behavior along
with important behavioral patterns and trends which provides key details
regarding organizations assets, equity, liabilities and profits or losses.
About “Blue Diamonds Jewellery Worldwide PLC
About “Blue Diamonds Jewellery Worldwide PLC
“Blue
Diamonds Jewellery Worldwide PLC, is an internationally reputed company that
manufactures specialized ‘floating diamonds’ jewellery. As an internationally
renowned company amongst the Gem & Jewellery exporters in Sri Lanka, Blue
Diamonds Jewellery Worldwide has won several accolades such as the Presidential
Export Awards in 2006 & 2007” (Blue Diamonds Jewellery Worldwide
PLC, 2016/2017)
“Being
established in 1991, Blue Diamonds Jewellery Worldwide is a pioneer in the
industry, and to date the only public quoted diamond jewellery company listed
in the Colombo Stock Exchange. It is also the first company in Sri Lanka to
export quality jewellery, under an international brand name.” (Blue
Diamonds Jewellery Worldwide PLC, 2016/2017).
Trend Analysis
2013
|
2014
|
2015
|
2016
|
2017
|
|
ASSETS
|
|||||
Non-current assets
|
|||||
Property, plant and equipment
|
100
|
92.9766029
|
87.39218224
|
79.3178092
|
73.60893083
|
Leasehold property
|
100
|
98.6692819
|
97.33856373
|
96.0078456
|
94.66658148
|
Intangible assets
|
100
|
68.2720811
|
36.54416223
|
14.3572236
|
0
|
Financial assets - Available-for-sale
|
100
|
4505.85504
|
107.508432
|
102.828131
|
95.81270183
|
Investment in subsidiary
|
100
|
0
|
7.566425651
|
7.56642565
|
0
|
Financial assets - loans and receivables
|
100
|
104.12858
|
117.080501
|
131.906455
|
134.9775631
|
Loan receivable
|
|||||
Related part receivable
|
100
|
0
|
0
|
0
|
0
|
Total non-current assets
|
100
|
96.700333
|
91.65544454
|
91.8815339
|
88.66777549
|
Current assets
|
|||||
Inventories
|
100
|
120.415667
|
114.9802058
|
95.7618032
|
78.45250051
|
Amounts due from related parties
|
100
|
0
|
0
|
753.032582
|
0
|
Loan receivable
|
|||||
Trade and other receivables
|
100
|
93.3013724
|
27.5734575
|
127.922019
|
124.7556253
|
Short term investments
|
100
|
108.795391
|
120.1668534
|
127.174639
|
137.1795766
|
Cash and cash equivalents
|
100
|
58.2977279
|
179.8910282
|
70.6456539
|
32.84840606
|
Total current assets
|
100
|
100.798226
|
123.5658474
|
94.7469501
|
72.18665085
|
Total assets
|
100
|
99.650449
|
114.6280779
|
93.944377
|
76.80284117
|
·
In the trend analysis 2013 considers as
the base period. The fluctuations of other years are explained by considering
2013 as the base period.
When referring to the company’s statement of financial position within the period of 2013 to 2017 it’s important to identify the trends in each important element.
When referring to the company’s statement of financial position within the period of 2013 to 2017 it’s important to identify the trends in each important element.
·
When referring to the financial assets
available for sale it demonstrates an unusual trend. In 2014 it starts with
4506% of increase and it starts to decline year by year gradually. The key
reason for this is concerned as according to the financial statements in 2013,
the inclusion of unquoted investments. It’s a onetime investment took place
with Fior Drissage Jewelers Ltd
·
Total none current assets demonstrate in
overall a declining trend but when it comes to total current assets it
demonstrates a increasing pattern up to 2015 then it illustrates a decreasing
pattern. Eventually in total assets until 2015 it shows a gradual increment,
then it show a decline in trend. Since the representation of current assets in
total assets are significantly high. The changes of current assets reflects on
total assets.
·
As a whole when concerning about the trend
in total assets it indicates an adverse trend for “Blue Diamonds Jewellery
Worldwide PLC”.
2013
|
2014
|
2015
|
2016
|
2017
|
|
EQUITY AND LIABILITIES
|
|||||
Equity
|
|||||
Stated capital
|
100
|
100
|
179.2887728
|
179.288773
|
179.2887728
|
General reserves
|
100
|
100
|
95.90582148
|
95.9058215
|
95.90582148
|
Revaluation reserve
|
100
|
100.928073
|
100.9280729
|
100.928073
|
100.9280729
|
Financial assets available-for-sale reserve
|
100
|
35.5290721
|
93.25616021
|
97.4598612
|
103.7609008
|
Accumulated losses
|
100
|
161.243752
|
310.8688675
|
438.420349
|
557.8884218
|
Total equity
|
100
|
87.9622348
|
111.3429367
|
86.088198
|
62.4327278
|
Non-current liabilities
|
|||||
Employee benefits
|
100
|
106.335933
|
140.8941407
|
120.065695
|
115.0627098
|
Bimputh Loan payable
|
0
|
||||
Total non-current liabilities
|
100
|
106.335933
|
140.8941407
|
120.065695
|
373.7274487
|
Current liabilities
|
|||||
Trade payables
|
100
|
1030.29399
|
100.629957
|
110.789603
|
116.1713205
|
Current taxation
|
100
|
47.7612108
|
199.5705662
|
255.771313
|
434.5945298
|
Other payables and accruals
|
100
|
90.9725196
|
117.8297027
|
160.664117
|
135.8607381
|
Bank overdraft
|
100
|
0
|
0
|
22954890.8
|
29953735.38
|
Related party payables
|
100
|
0
|
4868.787601
|
0
|
0
|
Total current liabilities
|
100
|
354.793872
|
177.2348668
|
257.363092
|
282.700995
|
Total liabilities
|
100
|
287.249388
|
167.3554659
|
220.038135
|
307.4469736
|
Total equity and liabilities
|
100
|
99.650449
|
114.6280779
|
93.944377
|
76.80284117
|
·
When it comes to the equity and
liabilities. With comparing the base year stated capital and general reserves
from 2015 to 2017 illustrate a constant and static trend. But revaluation
reserve demonstrate a static trend from the 2014 onwards.
·
Accumulated losses demonstrate an
infrequent trend in its behavior. From 2015 to 2017 it demonstrate that
accumulated losses increased unexpectedly enormous amounts. This represents the
losses that the organization incurred annually as an accumulated amount.
·
Total equity show an increment until 2015.
From 2015 to 2017 it demonstrates a decline. This explains the company started
to lose their equity share holders gradually. This could be sue to the
continuous lose making in an increasing pattern consecutively.
·
When referring to the total none current
liabilities it shows a fluctuating trend. But from 2016 to 2017 it shows a
significant escalation.
·
When referring to the bank overdraft it
demonstrate a highly unusual increment in the trend. With comparing to 2013 in
2016 and 2017 it shows a gigantic increment
·
Total current liabilities in the other
hands decreases up to 2015 but then demonstrate a gradual increase. As a result
total liabilities replicates the same trend. It’s clear that since equity
capital started to get decreased they have decided to pay more attention to
short and long term liabilities. Taking bank overdraft facility could
demonstrate as a example
2013
|
2014
|
2015
|
2016
|
2017
|
|
Revenue
|
100
|
61.0082294
|
50.06570177
|
78.9339517
|
32.77663746
|
Cost of sales
|
100
|
87.1049029
|
90.67113967
|
143.109456
|
82.89656643
|
Gross loss
|
100
|
10.4823303
|
61.1709081
|
96.8717015
|
104.524455
|
Selling and distribution expenses
|
100
|
63.5536363
|
168.3856405
|
101.254181
|
111.1968559
|
Administrative expenses
|
100
|
83.8770739
|
134.8274211
|
118.213529
|
86.70329549
|
Other Income
|
100
|
326.206321
|
83.02062585
|
0
|
0
|
Loss from operations
|
100
|
134.059601
|
286.1960742
|
263.590175
|
231.9555778
|
Net finance income
|
100
|
108.774754
|
96.5239277
|
137.074632
|
54.80241262
|
Share of profit of associate (net of tax)
|
100
|
69.2434528
|
0
|
0
|
0
|
Loss/Profit before income tax
|
100
|
140.797292
|
334.320108
|
296.568805
|
276.475882
|
Income tax expense
|
100
|
47.7068392
|
270.9901035
|
203.305647
|
157.0726221
|
Loss/Profit for the year
|
100
|
138.900105
|
333.0294402
|
294.668098
|
274.0424393
|
·
When referring to the income statement it
shows fluctuations throughout the period as a trend but highest sale increment
recorded in 2016 as per the chairman’s’ report company has opened a new show
room in 2016 .
·
Other income shows a significant trend since
it demonstrate a significant increment in 2014 and it demonstrates a drastic
drop down from 2015 to 2017. In 2014 the company gain a profit from disposal of
property, plant and equipment along with the income generated from selling of
sand dust and wasted iron.
·
When it comes to loss from operations it
illustrates an increase up to 2015 and then it gradually decreases. The major
reasons can be identified that in 2015 since it shows the peak of the trend, a
higher proportion of director’s remunerations and salaries and wage costs are
incurred.
·
Other than that when it comes to income
tax expenses up it demonstrate a fluctuating trend but from 2015 in reach at
its peak in the trend within the period.
·
As a whole from 2013 to 2017 loss for the
year has increased from a 2013 to 2015 but 2015 onward it shows a gradual
decline in trend.
Trend
analysis able to provide significant information about the organization by
looking at its past trends. When looking at the statement of financial position
from 2013 to 2017 even id demonstrated an increment in the asset base within
first three years 2015 onwards it shows a decline in the asset base from 2015
onwards. Liabilities and equity as a whole while equity base gradually
declining from 2015 liabilities demonstrate an increase in the trend from 2014
onwards. In the income statement it shows the revenue is declining. But it
demonstrates a declining trend in loses.
Horizontal analysis
2013
|
2014
|
2015
|
2016
|
2017
|
|
ASSETS
|
|||||
Non-current assets
|
|||||
Property, plant and equipment
|
-3.00364768
|
-7.023397117
|
-6.006264447
|
-9.239239483
|
-7.19747363
|
Leasehold property
|
15.10940982
|
-1.330718135
|
-1.348665066
|
-1.367102702
|
-1.397035949
|
Intangible assets
|
934.6481065
|
-31.72791889
|
-46.47275778
|
-60.71267538
|
0
|
Financial assets - Available-for-sale
|
32.17425945
|
44.05855041
|
-0.976140282
|
-0.043534273
|
-0.068224801
|
Investment in subsidiary
|
0.04930685
|
0
|
0
|
0
|
0
|
Financial assets - loans and receivables
|
4.128580435
|
12.43839157
|
12.6630425
|
2.328247349
|
|
Loan receivable
|
-5.425026197
|
-17.47657138
|
-21.84911729
|
||
Related part receivable
|
-4.039621556
|
-100
|
|||
Total non-current assets
|
52.27191367
|
-3.299667026
|
-5.217033158
|
0.246673171
|
-3.497719616
|
Current assets
|
|||||
Inventories
|
-17.1935747
|
20.41566696
|
-4.513915288
|
-16.71453137
|
-18.07537255
|
Amounts due from related parties
|
-9.869879468
|
-100
|
0
|
0
|
0
|
Loan receivable
|
34.35340387
|
72.54899521
|
14.50441339
|
||
Trade and other receivables
|
9.127379597
|
-6.698627611
|
-70.44688969
|
363.9317336
|
-2.475253396
|
Short term investments
|
8.795390907
|
10.45215467
|
5.831712415
|
7.867085757
|
|
Cash and cash equivalents
|
-45.28650728
|
-41.70227208
|
208.572966
|
-60.72863965
|
-53.50258049
|
Total current assets
|
-24.58756505
|
0.798225825
|
22.58732369
|
-23.32270438
|
-23.81110865
|
Total assets
|
-12.17063501
|
-0.349551025
|
15.03016702
|
-18.04418362
|
-18.2464735
|
·
Within the horizontal analysis it
demonstrate the percentage change in a particular number with comparison to the
previous year. Within the period of 2013 to 2017 in the income statement the
intangible assets have risen significantly in 2013. Compared to 2012 it is 934%
.the major reason for that is during the year of 2013 they have invested more
money in additional computer software.
·
In 2016 the trade and other receivables
increased from 364% comparing to 2015. According to the organizations’
financial reports the main reason is 2015 trade receivables demonstrate the
lowest within the five years period whereas in 2016 it demonstrates the
highest.
·
Apart from the above standalone difference
in 2015 with comparison to 2014 in cash and cash equivalents it demonstrate a
208% of increment. Comparing to 2014 in 2015 the inclusion of repo has
increased where there is no inclusion in 2014. Since repo simply means a
repurchase agreement it should be in a form of short term loan. It’s a
questionable are where it should be under current assets or current
liabilities.
2013
|
2014
|
2015
|
2016
|
2017
|
|
EQUITY AND LIABILITIES
|
|||||
Equity
|
|||||
Stated capital
|
-80.42908864
|
0
|
79.28877283
|
0
|
0
|
General reserves
|
0
|
0
|
-4.094178519
|
0
|
0
|
Revaluation reserve
|
0
|
0.92807287
|
0
|
0
|
0
|
Financial assets available-for-sale reserve
|
96.2147943
|
-64.47092795
|
162.4784573
|
4.50769252
|
6.465266388
|
Accumulated losses
|
-93.29976323
|
61.24375208
|
92.79436471
|
41.03063874
|
27.24966407
|
Total equity
|
-8.03003604
|
-12.03776523
|
26.58038644
|
-22.68194055
|
-27.47818021
|
Non-current liabilities
|
|||||
Employee benefits
|
-36.28393454
|
0.063359326
|
0.324990879
|
-0.147830463
|
-0.041668728
|
Bimputh Loan payable
|
0
|
0
|
0
|
||
Total non-current liabilities
|
-36.28393454
|
0.063359326
|
0.324990879
|
-0.147830463
|
2.112691347
|
Current liabilities
|
|||||
Trade payables
|
-2.768032166
|
930.2939851
|
-90.23288901
|
10.09604509
|
4.857601678
|
Current taxation
|
-80.2410131
|
-52.23878919
|
317.8507261
|
28.16083969
|
69.91527472
|
Other payables and accruals
|
-58.94898811
|
-9.027480379
|
29.52230323
|
36.3528151
|
-15.43803254
|
Bank overdraft
|
3.174603175
|
-100
|
0
|
0
|
30.48955748
|
Related party payables
|
0
|
0
|
-100
|
0
|
|
Total current liabilities
|
-52.55269336
|
254.7938723
|
-50.04567987
|
45.21019298
|
9.845196787
|
Total liabilities
|
-49.01355788
|
187.2493882
|
-41.73861712
|
31.47950327
|
39.72440425
|
Total equity and liabilities
|
-12.17063501
|
-0.349551025
|
15.03016702
|
-18.04418362
|
-18.2464735
|
·
In 2015 with comparison to 2014 financial assets
available-for-sale reserve has increased by 162%. Referring to the exact values
this reserve represent negative value which represent a loss. It demonstrates
the loss has been significantly increased from 2014 to 2015. But it does not provide
any explanation for that in a note.
·
Trade payables in 2014 with comparison to
2013 indicates 930% of increment. The company obtained a credit facility of USD
2,750,000 from Seylan Bank PLC by previous years by pledging inventory of
jewelry as security is the key reason for this.
As a final result of lots of procedures that they have recognized their
final liability of 36,160,377 to the Seylan Bank PLC.
·
Total current liabilities from 2013 to
2014 has increased by 255% which is another standalone factor to be looked at.
The main reason can be described as the liability that has recognized in 2014.
It has significantly effected in current liabilities to rise in 2014.
2013
|
2014
|
2015
|
2016
|
2017
|
|
Revenue
|
16.76969091
|
-38.99177055
|
-17.93615022
|
57.66073171
|
-58.47586909
|
Cost of sales
|
14.81400487
|
-12.89509709
|
4.094186025
|
57.83352515
|
-42.0747107
|
Gross loss
|
22.48515185
|
-110.4823303
|
483.5621126
|
58.36237271
|
7.899885593
|
Selling and distribution expenses
|
-3.499549921
|
-36.44636369
|
164.9504424
|
-39.86768653
|
9.819520122
|
Administrative expenses
|
-24.73855594
|
-16.12292611
|
60.74406845
|
-12.32233943
|
-26.6553528
|
Other Income
|
-97.94107295
|
226.206321
|
-74.54965753
|
-100
|
|
Loss from operations
|
312.9004873
|
34.0596006
|
113.4842062
|
-7.898745413
|
-12.00143257
|
Net finance income
|
-72.52746614
|
8.774753709
|
-11.26256378
|
42.01103875
|
-60.02001853
|
Share of profit of associate (net of tax)
|
-15.5967991
|
-30.75654717
|
-100
|
||
Loss/Profit before income tax
|
-275.6474448
|
40.79729156
|
137.4478261
|
-11.29196305
|
-6.775130273
|
Income tax expense
|
-80.22311949
|
-52.29316076
|
468.0319798
|
-24.97672613
|
-22.74064985
|
Loss/Profit for the year
|
-319.9399058
|
38.9001048
|
139.7618351
|
-11.51890409
|
-6.999624058
|
·
When referring to the income statement it
within the 2013 to 2017 period of time even the gross loss demonstrates a
significant decline in 2014 in 2015 it shows a steep increase of 483% with
regarding to the previous year. This is due to in 2014 it demonstrate higher
revenue and lower cost of sale with comparing to 2015.
·
Loss from operation in 2013 shows a
significant increment with comparing to 2012 due to the low amount of losses
has recorded in 2012 with comparing to 2013. But it shows losses are gradually
declining from 2015 to 2017.
·
When it comes to income tax expenses in
2015 it demonstrate a sudden increment compared to the 2014.the key reason for
that as per the income statement of 2015 it explains that current tax on none
business income for the year the rate has changed from 12% to 28% . in 2015 onwards it records as
28%
·
Loss for the year seems to be gradually
decline from 2015 onwards.
Within the
Horizontal analysis it’s clear that total asset base of the organization seems
to be declining from 2015 onwards when concerning about the year by year
percentage change. From 2015 onward it
demonstrates total equity base starts declining whereas the total liabilities
starting to get increase. But at the same time it demonstrates from 2015
onwards the losses are gradually in a declining pattern. Organization at this
plat form demonstrates a higher uncertainty
Vertical analysis
2013
|
2014
|
2015
|
2016
|
2017
|
|
ASSETS
|
|||||
Non-current assets
|
|||||
Property, plant and equipment
|
13.80264
|
12.878244
|
10.523102
|
11.65365
|
13.228648
|
Leasehold property
|
0.812128
|
0.8041322
|
0.689634
|
0.829967
|
1.0010232
|
Intangible assets
|
0.195392
|
0.1338658
|
0.0622921
|
0.029861
|
0
|
Financial assets - Available-for-sale
|
0.043558
|
1.9695459
|
0.0408526
|
0.047677
|
0.0543393
|
Investment in subsidiary
|
2.065572
|
0
|
0.1363453
|
0.166364
|
0
|
Financial assets - loans and receivables
|
9.709658
|
10.145994
|
9.9173922
|
13.63324
|
17.06429
|
Loan receivable
|
0
|
1.2479753
|
1.0260546
|
1.033161
|
0.9876324
|
Related part receivable
|
1.380002
|
0
|
0
|
0
|
0
|
Total non-current assets
|
28.00895
|
27.179757
|
22.395673
|
27.39393
|
32.335932
|
Current assets
|
|||||
Inventories
|
44.18751
|
53.39533
|
44.323251
|
45.04235
|
45.136621
|
Amounts due from related parties
|
0.163944
|
0
|
0
|
1.314132
|
0
|
Loan receivable
|
0
|
0.1501033
|
0.1753182
|
0.369113
|
0.5169821
|
Trade and other receivables
|
7.314508
|
6.8484752
|
1.759484
|
9.960007
|
11.88141
|
Short term investments
|
1.057149
|
1.1541634
|
1.1082296
|
1.431086
|
1.8882011
|
Cash and cash equivalents
|
19.26794
|
11.272171
|
30.238044
|
14.48938
|
8.2408538
|
Total current assets
|
71.99105
|
72.820243
|
77.604327
|
72.60607
|
67.664068
|
Total assets
|
100
|
100
|
100
|
100
|
100
|
· In
the vertical analysis above, from 2013 to 2017 income statements have been
considered. Within the first part of the vertical analysis none current assets
and current assets have demonstrated a higher representation as a percentage of
total assets. Since current assets represents a higher volume it demonstrates
most of the organizational assets are liquid and the company is able to
reinvest or purchase plant assets.
·
The major reason for current assets
demonstrate a higher representation than the total none current assets could be
since “Blue Diamonds Jewellery Worldwide PLC” is a manufacturing company they
tend to maintain different types of inventories. In 2015 cash and cash
equivalents has significantly gone up as a percentage of total assets. The main
reason for this is, unlike in other years within 2013 to 2017 period in 2015
specifically there’s repo inclusion in the cash and cash equivalents. And
there’s no bank overdraft amount for 2015.
2013
|
2014
|
2015
|
2016
|
2017
|
|
EQUITY AND LIABILITIES
|
|||||
Equity
|
|||||
Stated capital
|
65.14215
|
65.370658
|
101.88827
|
124.32098
|
152.068
|
General reserves
|
42.1983
|
42.346322
|
35.306032
|
43.079349
|
52.69418
|
Revaluation reserve
|
5.479825
|
5.5500818
|
4.8248924
|
5.8871873
|
7.201142
|
Financial assets available-for-sale reserve
|
-0.0485
|
-0.017291
|
-0.039455
|
-0.050311
|
-0.06552
|
Accumulated losses
|
-18.6368
|
-30.15608
|
-50.54258
|
-86.97433
|
-135.376
|
Total equity
|
94.13499
|
83.093695
|
91.437162
|
86.26287
|
76.52196
|
Non-current liabilities
|
|||||
Employee benefits
|
1.594432
|
1.7014009
|
1.9597821
|
2.0377646
|
2.388709
|
Bimputh Loan payable
|
0
|
0
|
0
|
0
|
5.369895
|
Total non-current
liabilities
|
1.594432
|
1.7014009
|
1.9597821
|
2.0377646
|
7.758604
|
Current liabilities
|
|||||
Trade payables
|
1.212447
|
12.535582
|
1.0643853
|
1.4298511
|
1.833936
|
Current taxation
|
0.166832
|
0.0799605
|
0.2904591
|
0.4542141
|
0.944032
|
Other payables and accruals
|
2.836363
|
2.5893618
|
2.915584
|
4.850761
|
5.017397
|
Bank overdraft
|
2.03E-05
|
0
|
0
|
4.9645396
|
7.924069
|
Related party payables
|
0.054918
|
0
|
2.3326279
|
0
|
0
|
Total current
liabilities
|
4.27058
|
15.204905
|
6.6030563
|
11.699366
|
15.71943
|
Total liabilities
|
5.865011
|
16.906305
|
8.5628384
|
13.73713
|
23.47804
|
Total equity and
liabilities
|
100
|
100
|
100
|
100
|
100
|
· In
Equity and liabilities as a percentage stated capital, general reserves and
total equity represent a higher percentage. More importantly financial assets
available for sale reserve and accumulated reserves demonstrate negative
values. According to the annual report they haven’t provided any important
information regarding this significant amount of accumulated losses specially.
From 2013 to 2017 each year accumulated losses as a percentage of total equity
and liability illustrate a gradually increasing pattern.
· From
2013 to 2017 it demonstrates an increment in current liabilities than none
current liabilities in each year as a percentage of total equity and
liabilities. This simply could illustrates the company have to pay more
interest than if the company has refinanced with the business.
· As
a percentage of total equity and liability, financial assets available-for-sale reserve from
2014 onward each year demonstrates a increasing pattern. This represents an
uncertain condition in terms of finance to “Blue Diamonds Jewellery
Worldwide PLC”
2013
|
2014
|
2015
|
2016
|
2017
|
|
Revenue
|
100
|
100
|
100
|
100
|
100
|
Cost of sales
|
73.2581
|
104.5947
|
132.6736
|
132.819
|
185.2797
|
Gross loss
|
26.74189
|
4.594747
|
32.67358
|
32.819
|
85.2797
|
Selling and distribution expenses
|
16.094
|
16.76551
|
54.12895
|
20.645
|
54.60004
|
Administrative expenses
|
50.2884
|
69.13894
|
135.4272
|
75.3132
|
133.0268
|
Other Income
|
1.077305
|
5.7602653
|
1.7864227
|
0
|
0
|
Loss from operations
|
38.5632
|
84.73893
|
220.4433
|
128.777
|
272.9065
|
Net finance income
|
7.278841
|
12.977824
|
14.033205
|
12.64024
|
12.170194
|
Share of profit of associate (net of tax)
|
0.373708
|
0.4241528
|
0
|
0
|
0
|
Loss/Profit before income tax
|
30.9107
|
71.33695
|
206.4101
|
116.137
|
260.7363
|
Income tax expense
|
0.64307
|
0.502861
|
3.48072
|
1.65631
|
3.081712
|
Loss/Profit for the year
|
31.5538
|
71.83981
|
209.8908
|
117.793
|
263.818
|
·
In the vertical analysis of income
statement the base as a norm considers as the revenue. Within the five years
period it can be seen that cost of sales as a percentage of revenue
demonstrates an increasing pattern.
·
When concerning about the gross loss it
can be seen that 2014 onwards it demonstrates a significantly increasing
pattern. This explains direct costs that are related to manufacturing are
increased within the period significantly.
·
Except for the decline in 2015 to 2016 the
selling and distribution expenses demonstrate an increasing pattern as a
percentage of sales in each consecutive year within the five years period. This
indicates money invested in selling and distribution is not much effective in
driving the sales growth.
·
The loss from operations from 2013 to 2015
demonstrates a significant increment as a percentage of revenue in each year
then it shows a slight decline then again it increases. Loss for the year
demonstrates the same type of behavior since loss from operations reflects
directly on the loss for the year.
Within
the vertical analysis of financial statements when we referring to the
statement of financial position it clearly demonstrate that total none current
assets from 2015 onwards demonstrate an increase whereas total asset
demonstrate a gradual decline since current asset represent the highest
presentation out of assets it shows a gradual decline in organization’s asset
base. When referring to the total equity and liabilities it clearly demonstrate
that out of total equity and liabilities from 2015 onward equity base
illustrate a decline parallel to that total liabilities from 2015 onwards
demonstrate an increase. It clearly visible that organization is losing its
main back bone of financial structure which happens to the equity share
holders. But the company is unable to stop their resistance due highly
increasing accumulated loss within the period. When referring to the
organizations income statement cost of production is gradually increasing as a
percentage of revenue. And the overall loss within the period pictures
organizations high level of uncertainty.
Ratio Analysis
Within the
ratio analysis “Blue Diamonds Jewellery Worldwide PLC” performance is going to
be measured by using four specific types of ratios.
1. Liquidity
and Efficiency ratios.
2. Solvency
ratios
3. Profitability
ratios
4. Market
ratios.
