3. Astral Poly Technik had fixed 19 March 2021 as record date for of ascertaining the...

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3. Astral Poly Technik had fixed 19 March 2021 as record date for of ascertaining the eligibility of shareholders entitled for issuance of Bonus Equity Shares in the proportion of 1 (One) Equity Shares of Re. 1/- each for every 3 (Three) existing Equity Shares of Re. 1/- each. Page 3 of 8 Table 1: P&L statement of Astral Poly ASTRAL POLY TECHNIK LTD Narration Mar-18 Mar-19 Mar-20 Trailing Sales 2072.92 2507.3 2577.9 2677.4 Expenses 1758.78 2126 2136.6 2182.1 Operating Profit 314.14 381.3 441.3 495.3 Other Income 12.68 15.4 12.1 15 Depreciation 57.13 81.4 107.9 116.2 Interest 21.58 31.9 39.4 24.8 Profit before tax 248.11 283.4 306.1 369.3 Тах 72.45 86.1 56.5 85.6 Net profit 175.09 195.8 247.9 280.9 EPS 8.772044 9.809619 12.33947 13.98154 Price to earning 61.09066 71.06698 56.94247 108.4573 Price 535.89 697.14 702.64 1516.4 RATIOS: Dividend Payout 0.041065 0.042901 0.060912 ОРМ 0.151545 0.152076 0.171186 0.184993 Table 2: Balance Sheet of Astral Poly Narration Mar-18 Mar-19 Mar-20 Equity Share Capital 11.98 12.00 15.10 Reserves 1,006.26 1,193.40 1,487.80 Borrowings 189.08 275.30 191.00 Other Liabilities 467.70 618.40 595.20 Total 1,675.02 2,099.10 2,289.10 Page 4 of 8 Net Block 842.47 1,105.40 1,254.90 Capital Work in Progress 73.13 80.80 44.40 Investments 0.20 0.20 Other Assets 759.42 912.70 989.60 Total 1,675.02 2,099.10 2,289.10 Working Capital 291.72 294.30 394.40 Debtors 306.73 339.10 227.80 Inventory 357.24 397.00 540.40 Debtor Days 54.01 49.36 32.25 Inventory Turnover 5.80 6.32 4.77 Return on Equity 17% 16% 16% Return on Capital Emp 24% 23% 22% a. In light of the bonus announcement and the financial information given above what could be the reason/s for Astral Poly to issue bonus shares.What other alternatives did it have ? ( Give your answer specific to the company,generic answers will not be accepted) (2 Marks) b. In light of the bonus announcement and the financial information given above , what do you think would be the impact of issuance of bonus shares of Astral on (2 Marks) i. EPS of the company ii. Share price of the company 3. Astral Poly Technik had fixed 19 March 2021 as record date for of ascertaining the eligibility of shareholders entitled for issuance of Bonus Equity Shares in the proportion of 1 (One) Equity Shares of Re. 1/- each for every 3 (Three) existing Equity Shares of Re. 1/- each. Page 3 of 8 Table 1: P&L statement of Astral Poly ASTRAL POLY TECHNIK LTD Narration Mar-18 Mar-19 Mar-20 Trailing Sales 2072.92 2507.3 2577.9 2677.4 Expenses 1758.78 2126 2136.6 2182.1 Operating Profit 314.14 381.3 441.3 495.3 Other Income 12.68 15.4 12.1 15 Depreciation 57.13 81.4 107.9 116.2 Interest 21.58 31.9 39.4 24.8 Profit before tax 248.11 283.4 306.1 369.3 Тах 72.45 86.1 56.5 85.6 Net profit 175.09 195.8 247.9 280.9 EPS 8.772044 9.809619 12.33947 13.98154 Price to earning 61.09066 71.06698 56.94247 108.4573 Price 535.89 697.14 702.64 1516.4 RATIOS: Dividend Payout 0.041065 0.042901 0.060912 ОРМ 0.151545 0.152076 0.171186 0.184993 Table 2: Balance Sheet of Astral Poly Narration Mar-18 Mar-19 Mar-20 Equity Share Capital 11.98 12.00 15.10 Reserves 1,006.26 1,193.40 1,487.80 Borrowings 189.08 275.30 191.00 Other Liabilities 467.70 618.40 595.20 Total 1,675.02 2,099.10 2,289.10 Page 4 of 8 Net Block 842.47 1,105.40 1,254.90 Capital Work in Progress 73.13 80.80 44.40 Investments 0.20 0.20 Other Assets 759.42 912.70 989.60 Total 1,675.02 2,099.10 2,289.10 Working Capital 291.72 294.30 394.40 Debtors 306.73 339.10 227.80 Inventory 357.24 397.00 540.40 Debtor Days 54.01 49.36 32.25 Inventory Turnover 5.80 6.32 4.77 Return on Equity 17% 16% 16% Return on Capital Emp 24% 23% 22% a. In light of the bonus announcement and the financial information given above what could be the reason/s for Astral Poly to issue bonus shares.What other alternatives did it have ? ( Give your answer specific to the company,generic answers will not be accepted) (2 Marks) b. In light of the bonus announcement and the financial information given above , what do you think would be the impact of issuance of bonus shares of Astral on (2 Marks) i. EPS of the company ii. Share price of the company

Answer rating: 100% (QA)

a The major reason for Astral Poly to issue the bonus share can be for increasing the liquidity of t... View the full answer