Final Indian Rayon

8/8/2019 Final Indian Rayon

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Index

Particulars Page No.

Acknowledgement

1. Financial analysis

2. Company profile

3. Research Methodology

4. Findings and Analysis

5. Conclusion and Suggestions

6. Bibliography

7. Annexure


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CHAPTER: 1

MEANING OF FINANCIAL ANALYSIS

Financial analysis (also referred to as financial statement analysis or accounting

analysis) refers to an assessment of the viability, stability and profitability of a

business, sub-business or project.

It is performed by professionals who prepare reports using ratios that make use

of information taken from financial statements and other reports. These reports

are usually presented to top management as one of their bases in making

business decisions. Based on these reports, management may:

Continue or discontinue its main operation or part of its business;

Make or purchase certain materials in the manufacture of its product;

Acquire or rent/lease certain machineries and equipment in the

production of its goods;

Issue stocks or negotiate for a bank loan to increase its working capital;

Make decisions regarding investing or lending capital;


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Financial analysts often assess the firm's:

1. Profitability - its ability to earn income and sustain growth in both

short-term and long-term. A company's degree of profitability is usually

based on the income statement, which reports on the company's results of

operations;

2. Solvency - its ability to pay its obligation to creditors and other third

parties in the long-term;

3. Liquidity - its ability to maintain positive cash flow, while satisfying

immediate obligations;

Both 2 and 3 are based on the company's balance sheet, which indicates

the financial condition of a business as of a given point in time.

4. Stability- the firm's ability to remain in business in the long run,

without having to sustain significant losses in the conduct of its business.

Assessing a company's stability requires the use of both the income

statement and the balance sheet, as well as other financial and non-

financial indicators.


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Financial statements:

Are formal records of the financial activities of a

business, person, or other entity? In British English, including United

Kingdom company law, financial statements are often referred to as

accounts, although the term financial statements are also used,

particularly by accountants.

Financial statements provide an overview of a business or person's

financial condition in both short and long term. All the relevant financial

information of a business enterprise, presented in a structured manner and

in a form easy to understand, is called the financial statements. There are

four basic financial statements:

1. Balance sheet: also referred to as statement of financial position or

condition, reports on a company's assets, liabilities, and Ownership equity

at a given point in time.

2. Income statement: also referred to as Profit and Loss statement (or a

"P&L"), reports on a company's income, expenses, and profits over a

period of time. Profit & Loss account provide information on the

operation of the enterprise. These include sale and the various expenses

incurred during the processing state.

3. Statement of retained earnings: explains the changes in a company's

retained earnings over the reporting period.

4. Statement of cash flows: reports on a company's cash flow activities,

particularly its operating, investing and financing activities.


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Purpose of financial statement:

The objective of financial statements is to provide information about the

financial position, performance and changes in financial position of an

enterprise that is useful to a wide range of users in making economic

decisions.

Financial statements should be understandable, relevant, reliable and

comparable. Reported assets, liabilities and equity are directly related toan organization's financial position. Reported income and expenses are

directly related to an organization's financial performance.

Financial statements are intended to be understandable by readers who

have "a reasonable knowledge of business and economic activities and

accounting and who are willing to study the information diligently."

Financial statements may be used by users for different purposes:

Owners and managers require financial statements to make important

business decisions that affect its continued operations. Financial analysis

is then performed on these statements to provide management with a

more detailed understanding of the figures. These statements are also

used as part of management's annual report to the stockholders.

Employees also need these reports in making collective bargaining

agreements (CBA) with the management, in the case of labor unions or

for individuals in discussing their compensation, promotion and rankings.

Prospective investors make use of financial statements to assess the

viability of investing in a business. Financial analyses are often used by


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investors and are prepared by professionals (financial analysts), thus

providing them with the basis for making investment decisions.

Financial institutions (banks and other lending companies) use them to

decide whether to grant a company with fresh working capital or extend

debt securities (such as a long-term bank loan or debentures) to finance

expansion and other significant expenditures.

Government entities (tax authorities) need financial statements to

ascertain the propriety and accuracy of taxes and other duties declared

and paid by a company.

Vendors who extend credit to a business require financial statements to assess

the creditworthiness of the business. Media and the general public are also

interested in financial statements for a variety of reasons.


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RATIO ANALYSIS

Introduction to ratio analysis:

Ratio analysis is one of the techniques of financial analysis where ratios are

used to evaluate the financial condition and performance of a firm. Analysis andinterpretation of various accounting ratios gives a skilled and experienced

analyst better understanding of financial conditions and performance of the firm

ratios are relationship expressed in anathematic terms by its figures, which are

connected with each other in some manner.

Meaning of Ratio

Generally speaking a ratio is simple one figure expressed in terms of another

and thus its an assessment of one number in relation to other. The relationship

must be established on the basis of some scientific and logical methods these a

ratio is a mathematical quantitative form. When this definitions of ratio is

explained with reference to the items shown in the financial statements, then it

is called

Accounting Ratios. Hence in accounting ratio is defined as quantitative

relationship between two items in the financial statement. It is the process of

determining and interpreting numerical relationship based on financial

statements as they are simple to calculate and easy to understand.

It is one of the techniques of financial analysis where ratios are used as yard for

evaluating the financial conditions and performance of a firm.


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\

STEPS IN RATIO ANALYSIS:

The first task of the financial analysis is to select the information relevant

to the decision under consideration from the statements and calculates

appropriate ratios.

To compare the calculated ratios with the ratios of the same firm relating

to the pas6t or with the industry ratios. It facilitates in assessing success

or failure of the firm.

Third step is to interpretation, drawing of inferences and report writing

conclusions are drawn after comparison in the shape of report or

recommended courses of action.

BASIS OR STANDARDS OF COMPARISON:

Ratios are relative figures reflecting the relation between variables. They enable

analyst to draw conclusions regarding financial operations. They use of ratios as

a tool of financial analysis involves the comparison with related facts. This is

the basis of ratio analysis. The basis of ratio analysis is of four types.

Past ratios, calculated from past financial statements of the firm.

Competitors ratio, of the some most progressive and successfulcompetitor firm at the same point of time.

Industry ratio, the industry ratios to which the firm belongs to

Projected ratios, ratios of the future developed from the projected or pro

forma financial statements


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NATURE OF RATIO ANALYSIS:

Ratio analysis is a technique of analysis and interpretation of financial

statements. It is the process of establishing and interpreting various ratios for

helping in making certain decisions. It is only a means of understanding of

financial strengths and weaknesses of a firm. There are a number of ratios

which can be calculated from the information given in the financial statements,but the analyst has to select the appropriate data and calculate only a few

appropriate ratios. The following are the four steps involved in the ratio

analysis.

Selection of relevant data from the financial statements depending upon

the objective of the analysis.

Calculation of appropriate ratios from the above data.

Comparison of the calculated ratios with the ratios of the same firm in the

past, or the ratios developed from projected financial statements or the

ratios of some other firms or the comparison with ratios of the industry to

which the firm belongs

INTERPRETATION OF THE RATIOS:

The interpretation of ratios is an important factor. The inherent limitations of

ratio analysis should be kept in mind while interpreting them. The impact of

factors such as price level changes, change in accounting policies, window

dressing etc., should also be kept in mind when attempting to interpret ratios.

The interpretation of ratios can be made in the following ways.

Single absolute ratio

Group of ratios


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Historical comparison

Projected ratios

Inter-firm comparison

GUIDELINES OR PRECAUTIONS FOR USE OF RATIOS:

The calculation of ratios may not be a difficult task but their use is not easy.

Following guidelines or factors may be kept in mind while interpreting various

ratios are

Accuracy of financial statements

Objective or purpose of analysis

Selection of ratios

Use of standards

Caliber of the analysis

IMPORTANCE OF RATIO ANALYSIS:

Aid to measure general efficiency

Aid to measure financial solvency

Aid in forecasting and planning

Facilitate decision making

Aid in corrective action

Aid in intra-firm comparison

Act as a good communication

Evaluation of efficiency

Effective tool


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Significance of Ratio Analysis

Following are the significance of ratio analysis

A. Managerial uses of ratio analysis:

1) Helps in decision-making:

Financial statements are prepared primarily for decision-making. But the

information provided in financial statement is not and in itself and no

meaningful conclusion can be drawn from these statements alone. Ratio

analysis helps in making decision from the information provided in these

financial statements.

2) Helps in financial forecasting and planning:

Ratio analysis is of much help in financial forecasting and planning. Planning is

looking ahead and the ratios calculated for a number of years work as a guide

for the future. Meaningful conclusions can be drawn for future from these

ratios. Thus, ratio analysis helps in forecasting and planning.

3) Helps in communicating:

The financial strength and weakness of the firm are communicated in a more

easy and understandable manner by the use of ratios. The information contained

in the financial statements is covered in a meaningful manner to the one whom


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it is meant. Thus, ratios help in communication and enhance the value of the

financial statements.

4) Helps in Co-Ordination:

Ratios even help in co-ordination, which is of utmost importance in effective

business management. Better communication of efficiency and weakness of an

enterprise results in better co-ordination in enterprise.

5) Helps in control:

Ratio analysis even helps in making effective control of the business. Standard

ratio can be based upon performed financial statements and variances anddeviations, if any, can be found by comparing the actual with the standards so as

to take a corrective action at the right time. The weakness or otherwise, if any,

come to the knowledge of the management which helps in effective control of

the business.

6) Other Uses: There are so many other uses of ratio analysis. It is an essential

part of the budgetary control and standard costing. Ratios are of immenseimportance in the analysis and interpretation of financial statements as they

bring the strength or weakness of a firm.

(B) Utility to share holders/Investors: An investor in the company will like to

assess the financial position of the concern where he is going to invest. His first

interest will be the security of his investment and then a return in the form of

dividend or interest. For the first purpose he will try to assess the value of fixedassets and the loan rose against them. The investor will feel satisfied only if the

concern has sufficient amount of assets. Long-term solvency ratios, on the other

hand, will be useful to determine profitability position. Ratio analysis will be

useful to the investor in making up his mind whether present financial position

of the concern warrants further investment or not.

(C) Utility to creditors:


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The creditors or suppliers extend short-term credit to concern. They are

interested to know whether financial position of the concern warrants their

payments at a specified time or not. The concern pays short-term creditors out

of its current assets. If the current assets are quite sufficient to meet current

liabilities then the creditors will not hesitate in extending credit facilities.

Current and acid test ratios will give an idea about the current financial position

of the concerns.

(D) Utility of Employees:

The employees are also interested in the financial position of the concern

especially profitability. Their wage increases and amount of fringe benefits arerelated to volume of profits earned by the concern. The employees make use of

information available in financial statements. Various profitability ratios

relating to gross profit, operating profit, net profit, etc. enable employees to put

forward their viewpoint for the increase of wages of other benefits.

(E) Utility to Government:

Government is interested to know the overall strength of the industry. Various

financial statements published by industrial units are used to calculate ratios fordetermining short-term, long-term and overall financial position of the

concerns. Profitability indexes can also be prepared with the help of ratios.

Government may base its future policies on the basis of industrial information

available from various units. The ratios may be used as indicators of overall

financial strength of the public as well as private sectors. In the absence of the

reliable economic information, governmental plans and policies may not prove

successful.

(F) Tax Audit Requirements:

The Finance Act, 1984, interested section 44 AB in the Income Tax Act. Under

this section every assesse engaged in any business having turnover or gross

receipts exceeding Rs.40 lacks is required to get the accounts audited by a

chartered accountant and submits the tax audit report before the due date for

filing the return of income under section 139(1). Incase of a professional, a

similar report is required if the gross receipts exceed Rs.10 lacks. Clause 32 of

the Income Tax Act requires that the following accounting ratios should begiven:


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Gross Profit/Turnover

Net Profit/Turnover

Stock-in-trade/Turnover

Material Consumed/Finished Goods Produced

Advantages of Ratio Analysis:

Simplifies financial statements

Facilitates inter-firm comparison

Makes inter-firm comparison

Helps in planning and forecasting

Helps in decision making

It may also be used as a measurement of efficiency.

Limitations of Ratio Analysis:

The ratio analysis is one of the most powerful tools of financial management.

Though ratios are simple to calculate and easy to understand, they suffer from

some serious limitations:

1. Limited Use of a Single Ratio:

A single ratio, usually, does not convey much of a sense. To make a better

interpretation a number of ratios have to be calculated which is likely to confuse

the analyst than help him in making any meaningful conclusion.

2. No Fixed Standards:

No Fixed Standards can be laid down for ideal ratios. There are no well-

accepted standards or rules of thumb for all ratios, which can be accepted as

norms. It renders interpretation of the ratios difficult.


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3. Inherent Limitation of Accounting:

Like financial statements, ratios also suffer from the inherent weakness of

accounting records such as their historical nature. Ratios of the past are not

necessarily true indicators of the future.

4. Change of Accounting Procedures:

Change in accounting procedure by a firm often makes ratio analysis

misleading, example, a change in the valuation of methods of inventories, from

FIFO to LIFO increases the cost of sales and reduces considerably the value of

closing stocks which makes stock turnover ratio to be lucrative and an

unfavorable gross ratio.

5. Window Dressing:

Financial statements can easily be window dressed to present a better picture of

its financial and profitability position to outsiders. Hence, one has to be very

careful in making a decision from ratios calculated from such financial

statements. But it may be very difficult for an outsider to know about the

window dressing made by a firm.

6. Personal Bias:

Ratios are only of financial analysis and not an end in itself. Ratios have to be

interpreted and different people may interpret the same ratio in different ways.

7. Incomparable:

Not only industries differ in their nature but also the forms of similar business

viably differ in their size and accounting procedures, etc. It makes comparison

of ratios difficult and misleading. Moreover, comparisons are made difficult dueto differences in definitions of various financial terms used in the ratio analysis.

8. Absolute Figure Distractive:

Ratios devoid of absolute figures may prove distort, as ratio analysis is

primarily a quantitative analysis and not qualitative analysis.


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Composite (or) inter statement ratios:

These ratios exhibit the relation between a profit & loss account or

income statement item and a balance sheet items, e.g. stock turnover

ratio, or the ratio of total assets to sales.

2. Functional Classification:

These include liquidity ratios, long term solvency and leverage

ratios, activity ratios and profitability ratios.

3. Significance ratios:

Some ratios are important than others and the firm may classify

them as primary and secondary ratios. The primary ratio is one, which is of the

prime importance to a concern. The other ratios that support the primary ratio

are called secondary ratios.

IN THE VIEW OF FUNCTIONAL CLASSIFICATION THE RATIOS ARE:

1. Liquidity ratio

2. Leverage ratio

3. Activity ratio

4. Profitability ratio


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1. LIQUIDITY RATIOS:

Liquidity refers to the ability of a concern to meet its current

obligations as & when there becomes due. The short term obligations of a firm

can be met only when there are sufficient liquid assets. The short term

obligations are met by realizing amounts from current, floating (or) circulating

assets The current assets should either be calculated liquid (or) near liquidity.

They should be convertible into cash for paying obligations of short term

nature. The sufficiency (or) insufficiency of current assets should be assessed by

comparing them with short-term current liabilities. If current assets can pay off

current liabilities, then liquidity position will be satisfactory.

To measure the liquidity of a firm the following ratios can be

calculated

Current ratio

Quick (or) Acid-test (or) Liquid ratio

Absolute liquid ratio (or) Cash position ratio

(a) CURRENT RATIO:

Current ratio may be defined as the relationship between

current assets and current liabilities. This ratio also known as Working capital

ratio is a measure of general liquidity and is most widely used to make the

analysis of a short-term financial position (or) liquidity of a firm.

Current assets

Current ratio =

Current liabilities


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Components of current ratio:

CURRENT ASSETS CURRENT LIABILITIES

Cash in hand Outstanding or accrued expenses

Cash at bank Bank over draft

Bills receivable Bills payable

Inventories Short-term advances

Work-in-progress Sundry creditors

Marketable securities Dividend payable

Short-term investments Income-tax payable

Sundry debtors

Prepaid expenses

(b) QUICK RATIO:

Quick ratio is a test of liquidity than the current ratio. The term

liquidity refers to the ability of a firm to pay its short-term obligations as &

when they become due. Quick ratio may be defined as the relationship between

quick or liquid assets and current liabilities. An asset is said to be liquid if it is

converted into cash with in a short period without loss of value.

Quick or liquid assets

Quick ratio =

Current liabilities


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Components of quick or liquid ratio :

QUICK ASSETS CURRENT LIABILITIES

Cash in hand Out standing or accrued expenses



Sundry debtors Short-term advances

Marketable securities Sundry creditors

Temporary investments Dividend payableIncome tax payable

C) ABSOLUTE LIQUID RATIO:

Although receivable, debtors and bills receivable are generally

more liquid than inventories, yet there may be doubts regarding their realization

into cash immediately or in time. Hence, absolute liquid ratio should also be

calculated together with current ratio and quick ratio so as to exclude even

receivables from the current assets and find out the absolute liquid assets.

Absolute liquid assets

Absolute liquid ratio =Current liabilities

Absolute liquid assets include cash in hand etc. The acceptable

forms for this ratio is 50% (or) 0.5:1 (or) 1:2 i.e., Rs.1 worth absolute liquid

assets are considered to pay Rs.2 worth current liabilities in time as all the

creditors are nor accepted to demand cash at the same time and then cash may


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also be realized from debtors and inventories.

Components of Absolute Liquid Ratio:

ABSOLUTE LIQUID ASSETS CURRENT LIABILITIES

Cash in hand Out standing or accrued expenses


Interest on Fixed Deposit Bills payableShort-term advances

Sundry creditors

Dividend payable

Income tax payable

2. LEVERAGE RATIOS:

The leverage or solvency ratio refers to the ability of a concern to

meet its long term obligations. Accordingly, long term solvency ratios indicate

firms ability to meet the fixed interest and costs and repayment schedules

associated with its long term borrowings.

The following ratio serves the purpose of determining the solvency

of the concern.

Proprietory ratio

(a) PROPRIETORY RATIO:

A variant to the debt-equity ratio is the proprietory ratio which is


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also known as equity ratio. This ratio establishes relationship between share

holders funds to total assets of the firm.

Shareholders funds

Proprietory ratio=

Total assets

Components of proprietory ratio:

SHARE HOLDERS FUND TOTAL ASSETS

Share Capital Fixed Assets

Reserves & Surplus Current Assets

Cash in hand & at bank

Bills receivable

Inventories

Marketable securities

Short-term investments

Sundry debtors

Prepaid Expenses


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3. ACTIVITY RATIO:

Funds are invested in various assets in business to make sales and

earn profits. The efficiency with which assets are managed directly effect the

volume of sales. Activity ratios measure the efficiency (or) effectiveness with

which a firm manages its resources (or) assets. These ratios are also called

Turn over ratios because they indicate the speed with which assets are

converted or turned over into sales.

Working capital turnover ratio

Fixed assets turnover ratio

Capital turnover ratio

Current assets to fixed assets ratio

(a) WORKING CAPITAL TURNOVER RATIO:

Working capital of a concern is directly related to sales.

Working capital = Current assets - Current liabilities

It indicates the velocity of the utilization of net working capital.

This indicates the no. of times the working capital is turned over in the course of

a year. A higher ratio indicates efficient utilization of working capital and a

lower ratio indicates inefficient utilization.

Working capital turnover ratio=cost of goods sold/working capital.


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Components of Working Capital:

CURRENT ASSETS CURRENT LIABILITIES

Cash in hand Outstanding or accrued expenses



Inventories Short-term advances

Work-in-progress Sundry creditors

Marketable securities Dividend payable

Short-term investments Income-tax payable

Sundry debtors

Prepaid expenses

(b) FIXED ASSETS TURNOVER RATIO:

It is also known as sales to fixed assets ratio. This ratio measures

the efficiency and profit earning capacity of the firm. Higher the ratio, greater is

the intensive utilization of fixed assets. Lower ratio means under-utilization of

fixed assets.

Cost of Sales

Fixed assets turnover ratio =

Net fixed assets

Cost of Sales = Income from Services

Net Fixed Assets = Fixed Assets - Depreciation


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(c) CAPITAL TURNOVER RATIOS :

Sometimes the efficiency and effectiveness of the operations are

judged by comparing the cost of sales or sales with amount of capital invested

in the business and not with assets held in the business, though in both cases the

same result is expected. Capital invested in the business may be classified as

long-term and short-term capital or as fixed capital and working capital or

Owned Capital and Loaned Capital. All Capital Turnovers are calculated to

study the uses of various types of capital.

Cost of goods sold

Capital turnover ratio =

Capital employed

Cost of Goods Sold = Income from Services

Capital Employed = Capital + Reserves & Surplus


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(d) CURRENT ASSETS TO FIXED ASSETS RATIO:

This ratio differs from industry to industry. The increase in the

ratio means that trading is slack or mechanization has been used. A decline in

the ratio means that debtors and stocks are increased too much or fixed assets

are more intensively used. If current assets increase with the corresponding

increase in profit, it will show that the business is expanding.

Current AssetsCurrent Assets to Fixed Assets Ratio =

Fixed Assets

Component of Current Assets to Fixed Assets Ratio:

CURRENT ASSETS FIXED ASSETS

Cash in hand Machinery

Cash at bank Buildings

Bills receivable Plant

Inventories Vehicles

Work-in-progress

Marketable securities

Short-term investments

Sundry debtors Prepaid expenses


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4. PROFITABILITY RATIOS :

The primary objectives of business undertaking are to earn profits.

Because profit is the engine, that drives the business enterprise.

Net profit ratio

Return on total assets

Reserves and surplus to capital ratio

Earnings per share

Operating profit ratio

Price earning ratio

Return on investments

(a) NET PROFIT RATIO:

Net profit ratio establishes a relationship between net profit (after

tax) and sales and indicates the efficiency of the management in manufacturing,

selling administrative and other activities of the firm.

Net profit after tax

Net profit ratio=

Net sales

Net Profit after Tax = Net Profit () Depreciation () Interest () Income Tax

Net Sales = Income from Services


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It also indicates the firms capacity to face adverse economic

conditions such as price competitors, low demand etc. Obviously higher the

ratio, the better is the profitability.

(b) RETURN ON TOTAL ASSETS:

Profitability can be measured in terms of relationship between net

profit and assets. This ratio is also known as profit-to-assets ratio. It measures

the profitability of investments. The overall profitability can be known.

Net profit

Return on assets =

Total assets

Net Profit = Earnings before Interest and Tax

Total Assets = Fixed Assets + Current Assets


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(c) RESERVES AND SURPLUS TO CAPITAL RATIO:

It reveals the policy pursued by the company with regard to growth

shares. A very high ratio indicates a conservative dividend policy and increased

ploughing back to profit. Higher the ratio better will be the position.

Reserves& surplus

Reserves & surplus to capital =

Capital

s

(d) EARNINGS PER SHARE:

Earnings per share is a small verification of return of equity and is

calculated by dividing the net profits earned by the company and those profits

after taxes and preference dividend by total no. of equity shares.


Earnings per share =

Number of Equity shares

The Earnings per share is a good measure of profitability when

compared with EPS of similar other components (or) companies, it gives a view

of the comparative earnings of a firm.


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(e) OPERATING PROFIT RATIO:

Operating ratio establishes the relationship between cost of goods

sold and other operating expenses on the one hand and the sales on the other.

Operating cost

Operation ratio =

Net sales

However 75 to 85% may be considered to be a good ratio in case

of a manufacturing under taking.

Operating profit ratio is calculated by dividing operating profit by

sales.

Operating profit = Net sales - Operating cost

Operating profit

Operating profit ratio =

Sales


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(f) PRICE - EARNING RATIO :

Price-earning ratio is the ratio between market price per equity share and

earnings per share. The ratio is calculated to make an estimate of appreciation in

the value of a share of a company and is widely used by investors to decide

whether (or) not to buy shares in a particular company.

Generally, higher the price-earning ratio, the better it is. If the price

earning ratio falls, the management should look into the causes that have

resulted into the fall of the ratio.

Market Price per Share

Price Earning Ratio =

Earnings per Share

Capital + Reserves & Surplus

Market Price per Share = Number of Equity Shares

Earnings before Interest and Tax

Earnings per Share =

Number of Equity Shares


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(g) RETURN ON INVESTMENTS:

Return on share holders investment, popularly known as Return

on investments (or) return on share holders or proprietors funds is the

relationship between net profit (after interest and tax) and the proprietors funds.

Net profit (after interest and tax)

Return on shareholders investment =Shareholders funds

Traditional

classification or

Statement

Functional

Classification or

Classification

According to

Tests

Classification

according to

Importance or

Significance

1. Balance sheet

Ratios or PositionStatement Ratios

2. Profit and Loss

Account Ratios or

Income Statement

1. Liquidity

Ratios

2. Leverage

Ratios

3. Activity

1. Primary

Ratios

CLASSIFICATIO

N OF RATIO


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A) Traditional Classification or Statement Ratios

Traditional classification or

Statementratios

Balance Sheet Ratiosor Position StatementRatios

Profit and LossAccount Ratios orIncome StatementRatios

CompositeRatios or MixedRatios

1. Current Ratio

2. Liquid Ratio

3. Absolute Liquid

Ratio

4. Debt-Equity Ratio

5. Proprietary Ratio

6. Capital GearingRatio

1. Gross Profit

Ratio

2. Operating

Ratio

3. OperatingProfit Ratio

4. Net Profit

1. Stock Turnover

Ratio

2. Debtors

Turnover Ratio

3. Payables

Turnover Ratio

4. Fixed Assets

Turnover Ratio

5. Return on

Equity

6. Return on

Shareholders

Fund

7. Return onCapital Employed

8. Capital


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CHAPTER:2

Company Profile

Introduction

INDIAN RAYON (A UNIT OF ADITYA BIRLA NUVO LTD.)

INDIAN RAYON COMPANY, Veraval is a public Ltd company. It is a large-

scale industry. It is a capital oriented unit because automatic machineries done

all the works. It can be called heavy industry because the systems of heavy

industries are seen like capital investments is very huge production cycle and

installation of heavy and costly machineries the work of the unit has been

divided into 42 departments.

The rayon plant located at veraval is an ISO 9001 and ISO 14001 certified

plant. The main product of the rayon plant is viscose filament yarn apart fromchemicals like Sulphuric acid, carbon-di sulphide, which are both consumed in

house and sodium sulphate, which is a by-product.

The total production is as follows:

Pot Spun Yarn : 41.5 TPD

Continuous Spun Yarn : 5.00 TPD


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To be preferred choice of customers in premium segment of viscose filament

yarn global market and benchmarked chlor alkali producer while remaining

committed to the interests of all stakeholders.

MISSION

To produce viscose filament yarn to meet the expectations of customers in

premium segment.

To achieve minimum cost production through innovation, development &

involvement of employees & vendors

To maintain clean, safe and pollution free environment.

COMPANY POLICY


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Company is committed to be the preferred choice of customers while taking

care of the interests of all stakeholders. They are also committing to abide by

applicable legal and other requirement and ensure continual improvements in

all spheres of activities. They also adopt World Class Manufacturing

practices and maintain a high morale employee.

SAFETY POLICY

Company is committed to ensure safety, health, and clean environment

for our employees.

ENVIRONMENTAL POLICY

Company believes that preservation of environment is essential for the survival

of our business, employees, society and surroundings. They achieve it with the

involvement of our workforce, vendors, customers and neighborhood through:-

Compliance with relevant laws and regulations.

Efficient use of available resources.

Adoption of eco friendly technologies.

Education and sustained efforts of continual improvements.

Safe, clean and healthy work practice.

Commitment to prevent air and water pollution by adopting appropriatetechnology and practices.

Aditya Birla Nuvo Ltd., Veraval (Gujarat)

Aditya Birla Group of companies:


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Sr.

No

COMPANY KEY PRODUCTS AND SERVICES

01 GRASIM Viscose staple fiber, cement sponge, iron

textiles, exports, software consulting

02 HINDALCO Aluminum

03 INDIAN RAY ON Viscose filament yarn, textiles, insulator,

carbon black04 INDO GULF Fertilizers, copper

05 BIRLA GLOBAL

FINANCE

Financial services

06 HIGI INDUSTRIES Files, casting gases

07 ESSEL MINING Iron and manganese or mining Ferro alloys,

HPE woven sacks

08 SHREE DIGVIJAY

CEMENT

Blended yarns


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CHAPTER-3

Research Methodology

Research Methodology

1) Introduction

2) Types of research methodology

3) Objective of study

4) Scope and limitations of study

1) Introduction

Research methodology is a way to systematically solve the research problem. It

may be understood as a science of studying now research is donesystematically. In that various steps, those are generally adopted by a researcher

in studying his problem along with the logic behind them. It is important for

research to know not only the research method but also know methodology.

The procedures by which researcher go about their work of describing,

explaining and predicting phenomenon are called methodology. Methods

comprise the procedures used for generating, collecting and evaluating data. All

this means that it is necessary for the researcher to design his methodology for

his problem as the same may differ from problem to problem. Data collection isimportant step in any project and success of any project will be largely depend

upon now much accurate you will be able to collect and how

much time, money and effort will be required to collect that necessary data, this

is also important step. Data collection plays an important role in research work.

Without proper data available for analysis you cannot do the research work

accurately.


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2) Types of data collection

There are two types of data collection methods available.

1. Primary data collection

2. Secondary data collection

1) Primary data

The primary data is that data which is collected fresh or first hand, and for

firsttime which is original in nature. Primary data can collect through personal

interview, questionnaire etc. to support the secondary data.

2)Secondary data collection method

Secondary data easily get those secondary data from records, journals, annual

reports of the company etc. It will save the time, money and efforts to collect

the data. Secondary data also made available through trade magazines, balance

sheets, books etc. But primary data collection had limitations such as matter

confidential information thus project is based on secondary information

collected through two years annual report of the company, supported by various

books and internet sides. The data collection was aimed at study of working

capital management of the company.


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3. Quantitative V/S Qualitative

Quantitative research is based on the measurements of quantity or amount. It is

applicable to the phenomena that can be expresses in the term of quantity.

Qualitative research is especially important in the behavioral science where is to

discover the underline motives of human behavior.

4. Conceptual V/S Empirical:

Conceptual research is related to some abstract idea (s). It is generally used

philosophers & thinkers to develop new concepts or to interpret existing ones.

Empirical research relies on experience or observation alone often without

regard for system & theory. It is a data base research, coming up with

conclusions, which are capable of being verified, by observation or

experiments.

5. Some Other Types Of Research

There may be other types of research such as one time research or the

longitudinal research from the view point of time.

Laboratory research or stimulation research, historical research & exploratory

research are some of the other type of research.


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CHAPTER:4

RATIO ANALYSIS

FINANCIAL ANALYSIS OF THE INDIAN RAYON LTD:-

Role of ratio analysis

Ratio analysis helps to appraise the firms in the term of their profitability and

efficiency of performance, either individually or in relation to other firms in

same industry.

Ratio analysis is one of the best possible techniques available to

management to impart the basic functions like planning and control. As future

is closely related to the immediately past, ratio calculated on the basis historical

financial data may be of good assistance to predict the future.

Eg. On the basis of inventory turnover ratio or debtors turnover ratio in the

past, the level of

inventory and debtors can be easily ascertained for any given amount of sales.

Similarly, the ratio analysis may be able to locate the point out the various arias

which need the management attention in order to improve the situation.

Eg.

Current ratio which shows a constant decline trend may be indicate the need for

further introduction of long term finance in order to increase the liquidity

position. As the ratio analysis is concerned with all the aspect of the firms

financial analysis liquidity, solvency, activity, profitability and overall

performance, it enables the interested persons to know the financial and

operational characteristics of an organization and take suitable decisions.


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Vertical Analysis

Vertical analysis is the procedure of preparing and presenting common size

statements. Common size statement is one that shows the items appearing on it

in percentage form as well as in rupees form. Each item is stated as a percentage

of some total of which that item is a part. Key financial changes and trends can

be highlighted by the use of common size statements.

In Indian ray one Industry has a separate financial department where in all

financial decision is taken by the experts, Indian ray one believes in maximum

profit at least cost but the finances in such a way that the goal of business say,

profit maximization is realized.

LEVERAGE:

The employment of and asset or source of funds for which the firm has to pay a

fixed cost or fixed return is termed as Leverage.

There are two types of leverages:

Operating Leverage

Financial Leverage.

Financial leverage:


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The leverage associated with financial activities is called Financial Leverage. It

represents the relationship between the firms earnings before interest and taxes

and the earning available for ordinary shareholders.

It is defined as the ability of firm to use fixed financial charges to magnifythe effects of change in EBIT on EPS.

Aditya Birla Nuvo Ltd. has posted a superior financial performance

during the year 2008-09. The revenue has grown to 4786.18 Corers against

3953.06 Cores in the previous year.

1) Financial Leverage= EBIT

EBT

= 408.26

162.30

= 2.52 %

Operating leverage:

The leverage associated with the investment (asset acquisition) activities is

referred to as Operating Leverage. It is determined by the relationship between

the firms sales revenue and its earnings before interest and tax (EBIT).

Operating leverage results from the existence of fixed operating expenses in the

firms income stream. With fixed cost the percentage change in profit

accompanying a change in volume is greater than percentage change in fixed

asset.


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Financial ratios:-

In general, there are 4 kinds of financial ratios that a financial analyst will use

most frequently, these are:

Performance ratios

Working capital ratios

Liquidity ratios

Solvency ratios

These 4 financial ratios allow a good financial analyst to quickly and efficiently

address the following questions or concerns:

Performance ratios

What return is the company making on its capital investment?

What are its profit margins?

Working capital ratios

How quickly are debts paid?

How many times is inventory turned?

Liquidity ratios

Can the company continue to pay its liabilities and debts?

Solvency ratios (Longer term)

What is the level of debt in relation to other assets and to equity?

Is the level of interest payable out of profits?


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Liquidity ratios

Can the company continue to pay its liabilities and debts?

Solvency ratios (Longer term)

What is the level of debt in relation to other assets and to equity?

Is the level of interest payable out of profits?

The Balance Sheet and the Statement of Income are essential, but they are only

the starting point for successful financial management.

Apply Ratio Analysis to Financial Statements to analyze the success, failure,and progress of your business.

Ratio Analysis enables the business owner/manager to spot trends in a business

and to compare its performance and condition with the average performance of

similar businesses in the same industry.

To do this compare your ratios with the average of businesses similar to yours

and compare your own ratios for several successive years, watching especially

for any unfavorable trends that may be starting.

Ratio analysis may provide the all-important early warning indications that

allow you to solve your business problems before your business is destroyed by

them.

Balance Sheet Ratio Analysis

Important Balance Sheet Ratios measure liquidity and solvency (a business's

ability to pay its bills as they come due) and leverage (the extent to which the

business is dependent on creditors' funding). They include the following ratios:


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Liquidity Ratio

Liquidity ratios measure the ability of the firm to meet its current obligations. A

firm should ensure that it does not suffer from lack of liquidity, and also that it

does not have excess liquidity. The failure of a company to meet its obligationsdue to lack of lack of sufficient liquidity, will result in poor creditworthiness,

loss of creditors confidence, or even in legal tangles resulting in the closure of

the company. A very high degree of liquidity is also bad; idle assets earn

nothing. Therefore, it is necessary to strike a proper balance between high

liquidity and lack of liquidity.

1) CURRENT RATIO

2) QUICK RATIO

3) ABSOLUTE LIQUID RATIO

1. Current Ratio:

Meaning & Objective:

Current ratio is also known as Working Capital Ratio as it is a measure of

working capital available at a particular time. Current Ratio establishes

relationship between current assets and current liabilities.

Current Ratio of the firm measures its short-term solvency, which indicates the

rupees of current assets available for each rupee of current liability.

The current ratio represents a margin of safety for creditors. It is generally

believed that 2:1 ratio shows a comfortable working capital position. The

minimum acceptable current ratio is obviously 1:1, but that relationship is

usually playing it too close for comfort.

If you feel your business's current ratio is too low, you may be able to raise it

by:

Paying some debts.

Increasing your current assets from loans or other borrowings with amaturity of more than one year.


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Converting non-current assets into current assets.

Increasing your current assets from new equity contributions.

Putting profits back into the business.

CURRENT RATIO:

Formula:

Current Ratio=Current Assets/Current Liabilities

PARTICULARS FY 05 FY 06 FY 07 FY 08 FY 09

CURRENT ASSET 737.82 1,641.42 1,452.39 2,136.84 2,282.34

CURRENT

LIABILITIES 400.67 681.55 653.53 925.47 978.85

CURRENT RATIO 1.84 2.36 2.22 2.30 2.33


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CHART:

Interpretation

As a rule, the current ratio with 2:1 (or) more is considered as satisfactory

position of the firm.

Current ratio for year 2007, was very close to the standard ratio

i.e,2.22.We can observe sudden increase in current ratio in 2006 and

a increase in current ratio 2007 onwards.

Quick Ratio:


The Quick Ratio is sometimes called the "acid-test" ratio and is one of the best

measures of liquidity.

"If all sales revenues should disappear, could my business meet its current

obligations with the readily convertible `quick' funds on hand?"


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From the current assets categories, inventory being least liquid and it normally

requires some time for realizing in to cash therefore it is excluded while

calculating quick ratio.

An acid-test of 1:1 is considered satisfactory unless the majority of your "quickassets" are in accounts receivable, and the pattern of accounts receivable

collection lags behind the schedule for paying current liabilities.

Formula:

Quick Ratio = Quick assets/ Total Quick Liabilities

QUICK RATIO

PARTICULAR FY 05 FY 06 FY 07 FY 08 FY 09

QUICK ASSETS 382.82 1115.09 977.13 1360.24 1534.74

QUICK LIABILITIES 400.68 681.56 652.53 925.47 978.85

QUICK RATIO 0.95 1.63 1.49 1.46 1.56


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CHART :

Interpretation: Quick assets are those assets which can be converted into cash

within a short period of time, say to six months. So, here the sundry debtorswhich are with the long period does not include in the quick assets.

We, can observe that for year2006, the quick ratio was highest

Whereas in year 2005,ratio was close to 1:1 ratio. Upward increase in the ratio

is observed from 2007.


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Absolute liquid ratio:

Even though debtors and bills receivables are considered as more liquid then

inventories, it cannot be converted in to cash immediately or in time. Therefore

while calculation of absolute liquid ratio only the absolute liquid assets as like

cash in hand cash at bank, short term marketable securities are taken in to

consideration to measure the ability of the company in meeting short term

financial obligation. It calculates by absolute assets dividing by current

liabilities.

FORMULA:

Absolute liquid ratio = Absolute liquid asset/ Current liabilities

Absolute liquid ratio


ABSOLUTE LIQUID

ASSET 8.70 18.84 21.71 56.19 36.05

CURRENT

LIABILITIES 400.67 681.55 653.53 925.47 978.85

ABSOLUTE RATIO 0.02 0.02 0.03 0.06 0.03


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Chart:

Interpretation:

The current assets which are ready in the form of cash are considered as

absolute liquid assets. Here, the cash and bank balance and the interest on fixedassets are absolute liquid assets.

We observe the sudden rise in absolute liquid ratio in 2008.

Efficiency ratio:

The ratios compounded under this group indicate the efficiency of the

organization to use the various kinds of assets by converting them the form of

sale. This ratio also called as activity ratio or assets management ratio. As the

assets basically categorized as fixed assets and current assets and the current

assets further classified according to individual components of current assets

viz. investment and receivables or debtors or as net current assets, the important

of efficiency ratio as follow:


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1) Working capital turnover ratio

2) Inventory turnover ratio

3) Current assets turnover ratio

4) Debtors turnover ratio

4.Working Capital Turnover Ratio:


The Working Capital Turnover ratio measures the company's Net Sales from the

Working Capital generated. A company uses working capital (current assets -current liabilities) to fund operations and purchase inventory. These operations

and inventory are then converted into sales revenue for the company. The

working capital turnover ratio is used to analyze the relationship between the

money used to fund operations and the sales generated from these operations.

Formula:

Working capital turnover ratio= Net Sales/Working Capital

Working Capital = total current Assets total current Liabilities


CURRENT

ASSET 737.821,641.4

2

1,452.3

92,136.84 2,282.34

(-)CURRENT

LIABILITIES 400.67 681.55 653.53 925.47 978.85

NET W.C.337.15 959.87 798.86 1,211.37 1,303.49


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SALES 1865.88 2645.79 3420.76 3932.95 4786.13

NET W.C. 337.15 959.87 798.86 1,211.37 1,303.49

W.C. TOR 5.53 2.75 4.28 3.24 3.67

CHART :

Interpretation:

Income from services is greatly increased due to the extra invoice for

Operations & Maintenance fee and the working capital is also increased greater

due to the increase in from services because the huge increase in current assets.

The income from services is raised and the current assets are also raisedtogether resulted in the decrease of the ratio of 2008 compared with 2007.


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Inventory Turnover Ratio:


Inventory turnover ratio reflects the efficiency of inventory management. It

indicates the number of times inventory is replaced during the year. The higher

ratio, efficient the management of inventory and vice versa in the organization.

Formula:

Inventory Turnover Ratio= Cost of Goods sold/ Average inventory

particulars 2005 2006 2007 2008 2009

Inventory

turnover

ratio

5.29 5.09 8.40 5.99 7.51


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Current Assets Turnover:

Meaning & Objective

Current assets turnover ratio indicates productivity ratio, which measures the

output, produced from the given input employed. Current Assets are inputs,

which can be converted in to cash quickly. Higher the current assets turnover

ratio, higher the liquidity of the firm.

Formula:

Current assets turnover ratio= Sales /Current Assets

PARTICULARS FY05 FY06 FY07 FY08 FY09

SALES 1865.88 2645.79 3420.76 3932.95 4786.13

CUREENT ASSETS 737.82 1,641.42 1,452.39 2,136.84 2,282.34

C.A. TOR 2.52 1.61 2.35 1.84 2.09

CHART :


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Debtors Turnover Ratio:


Debtors turnover indicates the number of times debtors turnover each year.

Generally, the higher the value of debtors turnover, the more efficient is the

management of credit.

Formula:

Debtors turnover ratio= Credit Sales/ Average Debtors

particulars 2005 2006 2007 2008 2009

Debtors

turnover

ratio

8.34 7.82 6.76 5.80 5.81


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CHART:

Interpretation:

The debtors turnover ratio was highest for year 2005,and than onwards decline

in ratio is observed. Year 2008 and 2009 show consistency.

Profitability ratio:

NET PROFIT RATIO:


Net profit ratio= X 100

Net sales


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Net profit after tax 113.72 186.93 224.97 243.07 137.43

Net sales 1865.88 2645.79 3,420.76 3932.95 4786.13

Ratio 6.09 7.06 6.57 6.18 2.8

Chart:

Interpretation:

The net profit ratio is the overall measure of the firms ability to turn each rupee

of income from services in net profit. If the net margin is inadequate the firm

will fail to achieve return on shareholders funds. High net profit ratio will help

the firm service in the fall of income from services, rise in cost of production or

declining demand.

The net profit ratio is minimum for year 2009 whereas was highest in 2006.

GROSS PROFIT RATIO:


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Gross profit

Gross profit ratio= X 100

Net sales


Gross profit 254.48 443.40 603.79 633.95 585.67

Net sales 1865.88 2645.79 3420.76 3932.95 4786.13

Ratio 13.63 16.75 17.65 16.11 12.23

Chart:


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RETURN ON TOTAL ASSETS

Net profit

Return on assets =

Total assets


Net profit 113.72 186.93 224.97 243.07 137.43

Total assets 1,847.09 3,771.18 5,956.38 6,767.16 8,620.87

Return on assets 0.06 0.04 0.03 0.03 0.015


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Chart:

Interpretation:

This is the ratio between net profit and total assets. The ratio indicates the return

on total assets in the form of profits.

The net profit is decreased in the current year because of the decrement in the

income from services due to the increase in Operations & Maintenance fee.

PRICE EARNINGS (P/E) RATIO:

Market price per share

Price Earning Ratio =

Earnings per Share


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Market price per share 226.11 364.67 334.87 383.79 394.09

Earning per share 18.99 31.21 24.11 25.58 14.46

Ratio 11.90 11.68 13.88 15.00 27.25

Chart:

Interpretation:

Earnings per share ratio are used to find out the return that the shareholders

earn from their shares. After charging depreciation and after payment of tax, the

remaining amount will be distributed by all the shareholders.

In year 2009,P/E Ratio was highest, whereas it was consistent for year 2005-06.


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CONCLUSION AND SUGGESTIONS:-

The company overall is at a good position. But we can see that the net profit ofthe company for current year has decreased as compared to the previous years.

Hence It is would be better for the organization to diversify the funds to

different sectors in the present market scenario. If we observe p &l account,

we see that companys net profit is increasing every year but in year 2008-09,

net profit of the company fell down. Thus, recession has affected company

adversely and caused decrease in net profit of the company for current year.

Over all company has good liquidity position and sufficient funds to repaymentof liabilities. Company has accepted conservative financial policy and thus

maintaining more current assets balance. Company is increasing sales volume

per year.

It is suggested that company should diversify the funds to different sectors in

the present market scenario.


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BIBLIOGRAPHY:-

www.indianrayon.com

www.adityabirlanuvo.co.in.

www.moneycontrol.com

www.adityabirla.com/the _group/heritage.htm

www.fabriclink.com/History.html

www.google.com
http://www.indianrayon.com/http://www.adityabirlanuvo.co.in/http://www.moneycontrol.com/http://www.adityabirla.com/the%20_group/heritage.htmhttp://www.fabriclink.com/History.htmlhttp://www.google.com/http://www.indianrayon.com/http://www.adityabirlanuvo.co.in/http://www.moneycontrol.com/http://www.adityabirla.com/the%20_group/heritage.htmhttp://www.fabriclink.com/History.htmlhttp://www.google.com/


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ANNEXURES

Balance Sheet of Aditya Birla

Nuvo ------------------- in Rs. Cr. -------------------

Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

12 mths 12 mths 12 mths 12 mths 12 mth

Sources Of Funds

Total Share Capital 59.88 59.89 93.31 95.01 95.01

Equity Share Capital 59.88 59.89 93.31 95.01 95.01

Share Application Money 0.00 23.61 0.00 377.41 377.41

Preference Share Capital 0.00 0.00 0.00 0.00 0.00

Reserves 1,294.18 2,124.11 3,031.24 3,551.32 3,649.2

Revaluation Reserves 0.00 0.00 0.00 0.00 0.00

Networth 1,354.06 2,207.61 3,124.55 4,023.74 4,121.6

Secured Loans 493.03 1,084.21 2,071.62 1,856.72 2,217.0

Unsecured Loans 0.00 479.36 760.21 886.70 2,282.1

Total Debt 493.03 1,563.57 2,831.83 2,743.42 4,499.2

Total Liabilities 1,847.09 3,771.18 5,956.38 6,767.16 8,620.8


12 mths 12 mths 12 mths 12 mths 12 mth


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Application Of Funds

Gross Block 1,418.74 2,461.81 2,653.15 3,111.78 3,290.1

Less: Accum. Depreciation 663.49 1,448.74 1,548.90 1,680.89 1,813.9

Net Block 755.25 1,013.07 1,104.25 1,430.89 1,476.2

Capital Work in Progress 55.03 122.45 203.88 70.73 128.78

Investments 699.66 1,675.79 3,849.39 4,054.17 5,712.3

Inventories 355.00 526.33 475.26 776.60 747.60

Sundry Debtors 260.90 474.78 595.99 760.98 887.23

Cash and Bank Balance 8.70 18.84 21.71 56.19 36.05

Total Current Assets 624.60 1,019.95 1,092.96 1,593.77 1,670.8

Loans and Advances 112.51 619.99 358.40 502.11 557.70

Fixed Deposits 0.71 1.48 1.03 40.96 53.76

Total CA, Loans & Advances 737.82 1,641.42 1,452.39 2,136.84 2,282.3

Deffered Credit 0.00 0.00 0.00 0.00 0.00

Current Liabilities 362.73 607.63 593.88 791.99 882.41

Provisions 37.94 73.92 59.65 133.48 96.44

Total CL & Provisions 400.67 681.55 653.53 925.47 978.85

Net Current Assets 337.15 959.87 798.86 1,211.37 1,303.4

Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00

Total Assets 1,847.09 3,771.18 5,956.38 6,767.16 8,620.8

Contingent Liabilities 404.64 584.65 333.46 810.00 991.33

Book Value (Rs) 226.11 364.67 334.87 383.79 394.09


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Profit & Loss account of Aditya

Birla Nuvo------------------- in Rs. Cr. -------------------


12 mths 12 mths 12 mths 12 mths 12 mths

Income

Sales Turnover 1,987.82 2,786.39 3,577.89 4,145.75 4,997.21

Excise Duty 121.94 140.60 157.13 212.80 211.08Net Sales 1,865.88 2,645.79 3,420.76 3,932.95 4,786.1

Other Income 5.73 31.31 73.15 69.94 60.24

Stock Adjustments 5.90 43.58 45.19 83.17 17.89

Total Income 1,877.51 2,720.68 3,539.10 4,086.06 4,864.2

Expenditure

Raw Materials 1,044.13 1,511.11 1,917.13 2,236.86 2,749.6

Power & Fuel Cost 121.31 187.56 333.75 359.66 537.38

Employee Cost 125.16 164.03 193.22 258.20 287.91

Other Manufacturing Expenses 75.49 104.06 103.46 115.89 115.43

Selling and Admin Expenses 204.60 250.28 293.61 367.72 463.92

Miscellaneous Expenses 51.40 62.03 80.49 93.03 85.18


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Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00

Total Expenses 1,622.09 2,279.07 2,921.66 3,431.36 4,239.4


12 mths 12 mths 12 mths 12 mths 12 mths

Operating Profit 249.69 410.30 544.29 584.76 564.58

PBDIT 255.42 441.61 617.44 654.70 624.82

Interest 22.94 68.55 195.40 204.47 290.64

PBDT 232.48 373.06 422.04 450.23 334.18

Depreciation 77.74 111.81 120.32 141.10 165.96

Other Written Off 2.95 0.00 0.00 0.00 0.00

Profit Before Tax 151.79 261.25 301.72 309.13 168.22

Extra-ordinary items 5.29 15.99 40.62 41.18 29.23

PBT (Post Extra-ord Items) 157.08 277.24 342.34 350.31 197.45

Tax 43.36 90.31 117.37 107.24 60.02

Reported Net Profit 113.72 186.93 224.97 243.07 137.43

Total Value Addition 577.96 767.96 1,004.53 1,194.50 1,489.8

Preference Dividend 0.00 0.00 0.00 0.00 0.00

Equity Dividend 23.95 41.75 51.32 54.63 38.00

Corporate Dividend Tax 3.42 5.86 7.20 9.28 4.43

Per share data (annualised)

Shares in issue (lakhs)598.8

5598.90 933.05 950.08 950.09

Earning Per Share (Rs) 18.99 31.21 24.11 25.58 14.46

Equity Dividend (%) 40.00 50.00 55.00 57.50 40.00

Book Value (Rs)226.1

1

364.67 334.87 383.79 394.09


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