To Analyse FinancialPerformance oF BANG OVERSEAS LTD.
INTRODUCTION
- Brief Introduction of the company
BANG OVERSEA LTD. is one of the leading manufacturing and exporter for men apparel. The company mainly builds their reputation by delivering good quality fabric and clothing products in domestic as well as international markets. Over the years the company expanded their operation from fabric supplier to clothing manufacturing in the textile industry.
- Industry Overview
The textile industry is one of the largest sectors In India which contribute to develop employment and gain export earnings. With increasing global demand for garments and fashion products, the industry has seen continuous growth in recent years.
- Purpose of the Analysis
The main purpose of this analysis is to know more about the company. To gain more information about financial performance, operational efficiency and overall financial position of BANG OVERSEA LIMITED.
COMPANY OVERVIEW
- Background and History
The BANG OVERSEA LTD. was established in 1992. Their main objective is to provide good quality fabric and garment in the market. The company initially was a small venture which used to supply fabric but over the period they expanded their business operation and started manufacturing clothing products.
- Business model
The main business of the company is manufacturing and trading of textile and apparel products. The company generates revenue by producing and selling textile products in the domestic and international market.
- Key Product and Services
1) Men’s garments and apparel
2) Fabrics and textile material
3) Fashion and apparel product
- Market Positioning
The company operates in the highly comparative textile industry. They face insane competition from other apparel manufactures, but companies have maintained their reputation in the domestic as well as international market by providing good quality of product and fabric.
PROMOTERS / FOUNDER
- Name of Promoters
1) Mr. Brijgopal Balaram Bang. (Managing Director)
2) Mrs. Vandana Bang (Whole Time Director)
- Professional Background
1) Mr. Brijgopal Balaram Bang. (Managing Director) – He is a Commerce Graduate also completed Master of Management Studies (MMS) from Mumbai University in 1992.
2) Mrs. Vandana Bang (Whole Time Director) – She has completed a bachelors of commerce degree.
- Role in company
1) Mr. Brijgopal Balaram Bang. (Managing Director) – He is actively involved in Business activities such as strategic planning and business development. He has played an important role in the growth of the company.
2) Mrs. Vandana Bang (Whole Time Director) – She has been associated with the company since 2013 as general manager in the Design Division. She has a forte in making the best designs and patterns.
FINANCIAL ANALYSIS
- Income statement
( In Lakh’s)
Particular | FY2025 | FY2024 |
Total income | 19,251 | 13,660 |
Total Expenses | (19,613) | (14,389) |
Deferred Tax | (161.77) | (8.45) |
Total Profit / Loss | (199) | (720) |
Key Observations of Income Statement:
1) Revenue for FY25 is increased as compared to FY24, but total expenses also increased as compared to last FY year.
2) As a result the company is facing loss for the last 2 FY as they faced loss approx. (199) in FY25.
- Balance sheet analysis
( In Lakh’s)
Particular | FY2025 | FY2024 |
Shareholder and Equity | 7,857 | 8,062 |
Total Current Assets | 13,294 | 12,078 |
Total Current Liability | 7,442 | 5,828 |
Total ( End of FY) | 15,947 | 14,582 |
End of the FY25 –
1) Total Shareholder Funds: 684 Lakhs increase in shareholder fund in FY25
2) Total Current Assets: Up by 10% as compared to FY24, i.e. 13,294
3) Total Current liability: Increased by 27% in total current liability as compare to FY24 i.e. 7,442
- Cash Flow Statement
(In Lakh’s)
Cash / FY | FY2025 | FY2024 |
Operating | (327.90) | (1210.95) |
Investing | 477,97 | 1872.90 |
Financing | (140.15) | (663.84) |
Cash and Cash Equivalent (In the end ) | 26.43 | 16.51 |
Note –
1) Cash from operating and financing activity for both the financial year seem to be negative because of operating expenses and loan or borrowing repayment.
2) Cash flow from investing activity seems to be positive because of interest received for each year and financial assets and deposits with banks.
Key financial Ratio
1) Profitability Ratio
ROE - Net profit / shareholder equity *100 = (2.61%)
2) Liquidity Ratio
Current Ratio – current assets / current liability = 1.96
3) Leverage Ratio
Debt to equity ratio – Total Debt / Shareholder equity = 0.07
4) Efficiency Ratio
Assets turnover ratio – Revenue / Total assets = 1.25
- Year on year comparison
5. KEY INSIGHTS AND INTERPRETATION
- Strengths
1) Good quality of fabrics and clothes products.
2) Established presence in the domestic and international market.
3) Long experience in the textile industry.
- Weakness
1) High expenses result in losses and less profitability.
2) Operational challenges because of the supply chain of exports in the international market.
- Risk factor
1) Intense competition from Global Brand.
2) Change in fashion trends.
- Future Outlook
From recent financial challenges the company remains optimistic about the future. The company may focus on improving their supply chain which will minimize their expenses and improve profitability. They have a huge future ahead in this industry in the international market because of their creative designs of clothing products and fabrics.
6. CONCLUSION
Final evaluation of financial condition
The BANG OVERSEA LIMITED has experienced both growth and financial challenges in recent years. Their revenue is increasing year by year but because of other economical factors and other factors their profitability is affected.
Investment / Performance Perceptive
The Company will have a long standing presence in the textile industry, also they have huge opportunities in future by improvement. They may get huge investment offers in future if they successfully improve their operational efficiency in coming years.
Sources
https://www.banggroup.com/directors
https://www.screener.in/company/BANG/consolidated/