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Transcript of Suzlon Final
1
A
PROJECT REPORT
ON
FINANCIAL ANALYSIS
OF
SUZLON ENERGY LTD.
IN PARTIAL FULFILLMENT OF ACADEMIC
REQUIREMENT OF M.B.A (RM)
SEM. I
Academic Year: 2012
SUBMITTED by:-
SUBMITTED TO:-
POOJA THAKKAR
CENTRAL FOR MANAGEMENT STUDIES
Sr.n NAME R.no class
1 BUSA DHYANASH K 2 RM
2 DAVE HEMANT B 5 RM
3 GAUSWAMI ARUN D 9 RM
4 PATEL JIGNESH I 14 RM
2
No. Particular Page No
1. Introduction 4
2. Vision 5
3. Bord of Directors 6
4. Directors report 10
3. Auditors report 15
4. Corporate governance 20
5. Horizontal analysis 26
6. Common size analysis 35
7. Multistep analysis 40
8. Ratio analysis 43
9. Bibliography 67
10. Balance sheet 69
11. Profit & loss a/c 71
12. Finding
13. Conclusion
3
PREFACE
This is a part of studies for the students of management. The analytical knowledge at MBA
(RM) SEM-01 level helps us to know the working problems of industries before we enter into
any organization as an employee or executive. This will help the students to come out &
exhibit by analytical preparation.
Under this report, one has to stay there in the company & collect the information & prepare a
report. “In accordance with MBA(RM) SEM-01 syllabus, We have undergone my at
“SUZLON ENERGY LIMITES”
We are glad to present our report based on “SUZLON ENERGY LIMITES”
4
ACKNOWLEDGEMENT
We first of all want to thank to the College for giving us such an opportunity for expanding
our knowledge.
We would like to express our thanks to the management of SUZLON ENERGY LTD.
For giving us the opportunity of make a study of practical training in their organization.
We also would like to thank to our PRO.POOJA THAKAR for helping us and also giving
guidance in preparing the project report.
5
INTRODUCTION
The Company was incorporated in 1995 by Tulsi Tanti.
Tulsi Tanti was primarily in the textile business and was introduced to wind energy
through a wind power project that he had commissioned for his textile factory.
The Company entered into a technical collaboration agreement in 1995 with a
German company, Sudwind GmbH Windkrafttanlagen to source the latest technology
for the production of WTGs in India.
The parties entered into a fresh agreement dated September 30, 1996, under which
Sudwind proposed to share technical knowhow relating to 0.27 MW, 0.30 MW, 0.35
MW, 0.60 MW and 0.75 MW WTGs in consideration for royalty to be paid on the
basis of each WTG sold over the course of five years from the date of this agreement.
SWSL, a subsidiary of the Company, was incorporated in 1998 with the objective of
providing O&M for wind power projects set up by the Company.
Suzlon Energy A/S, a wholly owned subsidiary of the Company was incorporated in
August, 2004 to supervise the international marketing activities of the Company.
Cannon Ball Wind Energy Park-I, LLC ("Cannon Ball") was incorporated as a
limited liability company in July, 2002 for the purpose of setting up a wind power
project in North Dakota, USA. Cannon Ball is a wholly owned subsidiary of SWECO
which is a subsidiary of Suzlon Energy A/S.
6
VISION
To be the technology leader in the wind industry
To be among the top three wind energy companies in the world
To be the most respected brand and preferred Company for all stake holders
To be the best team and best place to work
To be the fastest growing and most profitable Company in the sector
7
Board of Directors
Name Designation
Mr. Tulsi R Tanti e Chairman and Managing director
Mr. Ashish Dhawan Independent Director
Mr. Pradip Kumar Khaitan Independent Director
Mr. V Raghuraman Independent Director
Mr. Ajay Relan Independent Director
Mr. Girish R Tanti Whole Time Director
Mr. Toine van Megen Chief Executive Officer
Mr. Robin Banerjee Chief Finance Officer
Mr. Sumant Sinha Chief Operating Officer
Mr. Hemal A Kanuga Co. Secretary & Compl. Officer
8
AWARDS
Minister for Non-Conventional Energy Sources Vilas Muttemwar and his Ministry
has been honoured with the World Wind Energy Award-2005 for "Outstanding
Achievements in Favourable Policies for Wind Energy". By the World Wind
Energy Association (WWEA).
Suzlon Energy, India‟s leading and the world‟s fifth largest wind power solutions
company, has been awarded the Euromoney and Ernst & Young Global Renewable
Energy Award for „M&A of the Year‟ for the successful acquisition of REpower
Systems AG of Germany.
Suzlon Corp. (Pune, India) was recently awarded U.S. Environmental Protection
Agency (EPA) recognition for implementing a program from Ashland Distribution
. The company received the EPA's "Design for the Environment" formulator initiative
award in recently
9
PRODUCTS
Wind Turbine Generators „Above 1MW up to 2MW‟
Wind Turbine Generators „Above 2MW‟
Wind Turbine Generator „Upto 1MW‟
Wind Turbine Generator
10
COMPETITORS
Main Competitors
Bharat heavy electrical limited
Reliance infrastructure
Nuclear power corporation of India
Tata powers
11
Director’s report
12
Directors report
The Directors present the Seventeenth Annual Report of your Company together with
the audited financial statements for the financial year ended March 31,2012
1) Financial performance:
The standalone and consolidated audited financial results for the Year ended March 31,2012
are asunder:
STANDALONE
Particulars 2012-2011 2011-2010
Revenue from operation 6853.52 4357.55
Other operating income 17.69 8.84
EBITDA 569.79 260.33
LESS: Depreciation & amortization Exp. 182.68 156.89
EBIT 387.11 103.44
ADD: finance Income 347.06 331.67
LESS: finance Costs 884.02 658.32
loss before tax before exception item -149.85 -223.21
LESS: exception items 348.92 37.28
loss before tax -498.77 -260.49
Less: current Tax 6.61 19.19
LESS: Deferred Tax 0 -55.64
loss after tax -505.38 -185.66
ADD: share In Associate
N.A
N.A
LESS: Share of Loss/(profit) Of minority
N.A
N.A
Net Loss For The Year -505.38 -185.66
ADD: Balance Brought Forward 200.34 386
ADD: Additions Due to merger 191
N.A
Profit Available for Appropriations -114.04 200.34
LESS: Transfer to Legal and Statutory Res. 0 0
LESS: Transfer to Capital 0 0
Redemption reserve surplus carried to balance
sheet -114.04 200.34
13
CONSOLIDATED
PARTICULAR 2012-11 2011-10
Revenue from operation 21,082.37 17,879.13
Other operating income 276.84 211.1
EBITDA 1,821.20 1,047.24
LESS: Depreciation & amortization Exp. 661.23 657.40
EBIT 1,159.97 389.84
ADD: Finance Income 125.74 106.6
LESS: Finance Costs 1,654.74 1,374.78
Loss before tax before exception item -369.03 -878.34
LESS: Exception items -227.24 253.28
Loss before tax -141.79 -1131.62
LESS: current Tax 95.43 146.90
(Net of earlier years TAX And MAT Credit Entitlement) 235.37 38.37
LESS: Deferred Tax -472.59 -1,316.89
Loss after tax -33.29 -27.83
ADD: share In Associate 27.3 20.75
LESS: Share of Loss/(profit) Of minority -478.58 -1323.97
Net Loss For The Year -553.16 943.03
ADD: Balance Brought Forward -31.26 0
ADD: Additions Due to merger -1,063.00 -380.94
Profit Available for Appropriations 0 142.22
LESS: Transfer to Legal and Statutory Res. 0 30
LESS: Transfer to Capital redemption reserve -1,063 -553.16
14
.2) OPERATIONS REVIEW:
On a standalone basis, the Company achieved revenue from operations of Rs 6,853.52
Crores and EBIT of Rs 387.11 Crores as against Rs4,357.55Crores and Rs 103.44 Crores
respectively in the previous year. Net loss after tax is Rs 505.38 Crores as compared to net
loss after tax of Rs 185.66 Crores in the previous year. Though the volume and performance
improved compared to previous year, there is increase in loss compared to previous year,
primarily due to provision for diminution in value of investment in subsidiaries of Rs 348.92
Crores, foreign exchange loss and increase in finance cost.
On consolidated basis, the Group achieved revenue from operations of Rs 21,082.37 Crores
and EBIT of Rs 1,159.97 Crores as against Rs 17,879.13 Crores and Rs 389.84 Crores
respectively in the previous year. Net loss for the year is Rs 478.58 Crores as compared to
loss of Rs 1,323.97 Crores in the previous year. During the year, there is decrease in loss
compared to previous year primarily due to increase in sales volume resulting to higher
EBIT. Also during the year, sale of Hansen stake and reversal of provision towards
diminution in investment in Hansen contributed gain of Rs 227.24 Crores while in previous
year provision towards diminution in investment in Hansen resulted into loss of Rs216.00
Crores.
3. DIVIDEND:
In view of losses incurred during the year 2011-12 the Board of Directors do not recommend
any dividend for the year under review.
4. CAPITAL:
Authorized and paid-up share capital - During the year under review there was no change in
the Authorized Share Capital and Paid- up Share Capital. As on date, the Authorized Share
Capital of the Company is Rs 700,00,00,000/- divided into 350,00,00,000 equity shares of Rs
2/- each and the paid-up capital of the Company is Rs 355,47,31,294/- divided 177,73,65,647
equity shares of Rs 2/-each.
15
5. Particulars of conservation of energy, research and development, technology
absorption and foreign exchange earnings and outgo:
Information as required under Section 217(1)(e) of the Companies Act, 1956 read with the
Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 has
been provided in an Annexure which forms part of the Directors'' Report.
16
Auditor’s report
17
Auditors report
1. We have audited the attached Balance Sheet of Suzlon Energy Limited
(''theCompany'')a sat March 31,2012and also the Statement of Profit and Loss and the
Cash Flow Statement for the year ended on that date annexed thereto. These financial
statements are the responsibility ofthe Company''s management. Our responsibility is
to express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards generally accepted in
India.Those Standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis,evidence supporting the
amounts and disclosures in the financial statements. An audit also includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe that our
audit provides reasonable basis for our opinion.
3. As required by the Companies (Auditor''s Report) Order, 2003 (asamended) issued by
the Central Government of India in terms of sub-section (4A) of Section 227 of the
Companies Act, 1956, we enclose in the Annexure a statement on the matters
specified in paragraphs 4 and5 of the said Order.
4. Further to our comments in the Annexure referred to above, we report that:
i. We have obtained all the information and explanations, which to the best of our
knowledge and belief were necessary for the purposes of our audit;
ii. In our opinion, proper books of account as required by law have been kept by the
Company so far as appears from our examination of those books;
iii. The Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with
by this report are in agreement with the books of account;
iv. In our opinion, the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report comply with the accounting standards referred to in
sub-section (3C) of section 211ofthe Companies Act, 1956;
18
v. On the basis of the written representations received from the directors, as on March
31, 2012, and taken on record by the Board of Directors, we report that none of the
directors is disqualified as on March 31, 2012 from being appointed as a director in terms
of clause (g)of sub-section (1)of section 274oftheCompanies Act, 1956;
vi. Without qualifying our opinion we draw attention to Note 4 of the accompanying
financial statements regarding the existence of certain liabilities on account of foreign
currency convertible bonds (''FCCB'') which are due for redemption during June 2012 and
Oct. 2012 having an aggregate redemption value of USD 568.96 Million (Rs. 2,894.58
Crore). The Company is in the process of tying up funds for redemption of these FCCB
Liabilities and consequently, there exists a material uncertainty that may cast significant
doubt about the Company''s ability to continue as a going concern, which is dependent on
generating the required funds before the redemption date. Management''s plans forraising
funds for such redemption have been more fully discussed in Note 4 to the accompanying
financial statements, in view of which the accompanying financial statements have been
prepared under the going concern assumption, and consequently, no adjustment shave
been made tothe carrying value so classification of balance sheet accounts;
7. In our opinion, the Company has an internal audit system commensurate with the size
and the nature of its business.
8. We have broadly reviewed the books of account maintained by the Company pursuant
to the rules made by the Central Government for the maintenance of cost records under
section 209(1)(d) of the Companies Act, 1956, and are of the opinion that prima facie, the
prescribed Accounts and records have been made and maintained.
9. (a) Undisputed statutory dues including provident fund, investor education and
protection fund, employees'' state insurance, income-tax, sales-tax, wealth-tax, service
tax, customs duty, excise duty, cess and other material statutory dues have generally been
regularly deposited with the appropriate authorities though there has been a slight delay in
some cases.
(b) According to the information and explanations given to us, no undisputed amounts
payable in respect of provident fund, investor education and protection fund, employees''
19
state insurance, income-tax, wealth-tax, service tax, sales-tax, customs duty, excise duty,
cess and other undisputed statutory dues were outstanding, at the year end, for a period of
more than six months from the date they became payable.
(c) According to the records of the Company, the dues outstanding of income-tax, sales-
tax, wealth-tax, service tax, customs duty, excise duty and cess on account of any dispute,
are as follows:
NAME OF
THE
STATUTE
NATURE OF
DUE
AMOUNT RS. PERIOD TO
WHICH THE
AMT.
FORUM
WHERE THE
DISPUTE IS
PENDING
Income Tax
Act,1961
Income Tax 13,641,256 2007-08 Commissioner
Of Income Tax
Income Tax Act
, 1961
Income Tax 6,15,628 2009-10 Commissioner
Of Income Tax
Finance Act
,1994
Service Tax On
Consulting
32,358,885 1999-2000 CESTAT
10. The Company''s accumulated losses at the end of the financial year are less than fifty per
cent of its net worth but it has incurred cash losses in the current and immediately preceding
financial year.
11. Based on our audit procedures and as per the information and explanations given by
management, the Company has defaulted in repayment of dues to Financial Institutions and
Banks in respect of Letters of Credit/Buyers'' Credit/Bills Discounting, Term Loan an Interest
Liabilities. The following are the details of the defaults:
20
(Rs in Crore)
PARTICULARS DELAY
UPTO 30
DAYS
DELAY
31-60
DAYS
DELAY
ABOVE
60 DAYS
TOTAL
AMOUNT
Letters credit/buyers
credit/bills discounting
417.57 73.73 11.18 502.18
Term loan 54.35 12.60 - 66.95
Ineterest Liabilities 173.91 25.07 6.76 205.74
Approximately Rs 121.25 Crore in respect of Letters of Credit/Buyers'' Credit/Bill
Discounting and Rs 38.59 Crore in respect of term loans were in arrears as of the Balance
Sheet date. The company did not have any debentures outstanding during the year.
12. According to the information and explanations given to us and based on the documents
and records produced to us, the Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities. Accordingly, the
provisions of clause 4(xii) of the CARO are not applicable.
13. In our opinion, the Company is not a chit fund or a nidhi /mutual benefit fund/society.
Accordingly, the provisions of clause 4(xiii) of the CARO are not applicable.
14. In our opinion, the Company does not deal or trade in shares, securities, debentures and
other investments. Accordingly, the provisionsofclause4(xiv) of the CARO are not
applicable.
15. According to the information and explanations given to us, the Company has given
guarantee for loans taken by others from banks or financial institutions, the terms and
conditions whereof in our opinion are prima-facie not prejudicial to the interests of the
Company.
21
CORPORATE
GOVERNANCE
22
CORPORATE GOVERNANCE
INTRODUCTION
This Code of Ethics applies to all employees of Suzlon Energy Limited and of all majority
held subsidiaries worldwide. It also applies to the directors of the said companies Each
Region (country) has a Regional Ethics Officer (REO) who reports to Global Ethics Officer
(GEO). The REO investigates the concern either himself/herself or through an appointed
committee. The Regional Ethics Committee (REC) comprising the Business Unit Head,
Business Unit Chief Financial Officer, and the Business Unit Chief Legal Officer, will
formulate the decision which the REO will communicate to the GEO.
DO CONSIDER COMPLIANCE AS A PERSONAL RESPONSIBILITY
It is the responsibility of each employee to read carefully and understand the Code, to comply
with the Code and to avoid any activity or interest which might compromise the employee or
the company. All employees must conduct themselves accordingly and seek to avoid even the
appearance of improper behavior. When confronted with a questionable decision or act, it
will be of no relief to pretend later that it was “the company” or “somebody” or “Suzlon”
who took the questionable decision. It will be you and nobody else, and it is your actual
responsibility and also a right not to get involved in any improper behavior
DO ASK QUESTIONS
In case you have questions or you are in doubt as to whether a specific conduct complies with
the Code, you should discuss the same with your supervisor or your manager. Alternatively,
you can submit your question to the Regional Ethics Officer at your location or Business
Head, or to the Global Ethics Officer
CONFLICT OF INTEREST
All employees are obligated to act at all times solely in the best interests of Suzlon. A conflict
of interest arises when you have a personal relationship or a financial or other interest that
could interfere within this obligation, or when you use your position in the company for
personal gain. A conflict of interest can also arise when a family member receives improper
23
personal benefits as a result of your position or role in the company. Examples of actual or
potential conflicts of interests include:
Besides your working relationship with Suzlon, you are working for any other
company or have a position in any company (e.g. as a consultant or director) or you
are providing free-lance services to anyone.
You or a member of your household or immediate family, have a financial or other
interest in a person or company that competes with Suzlon.
A member of your household or immediate family competes with Suzlon or is
employed by a person or company that competes with Suzlon.
A member of your household or immediate family is a supplier or customer of
Suzlon, or an employee of a supplier or customers
You or members of your household or immediate family have an interest in supplier
or customer of Suzlon.
A member of your direct family is an employee of Suzlon and you are in a position
to influence employment decisions concerning this family member..
ACCURACY OF COMPANY BOOKS AND RECORDS
Suzlon employees are expected to be truthful and accurate in their accounting and time
reporting practices. Financial professionals are expected to stay up-to-date with all financial
reporting regulations related to their job functions, and to report financial statement items in a
manner consistent with applicable laws and reporting standards. All Suzlon employees
involved in financial reporting or communications are expected to produce disclosures that
are full, fair, accurate, timely and understandable. Examples of non-compliant behavior or
practices include:
In order to speed up revenue recognition, you arrange to advance ship goods,
without an explicit request from the customer.
24
You are requested to report certain data, or the conformity of a given activity or the
achievement of certain quality or production levels. Because things have usually
conformed in the past, you tick the boxes without double-checking the actual
situation or data.
In order to be in line with your budget, you prepay future costs and charge it to the
current accounting period, or the reverse: you defer recognizing an expense and push
it forward to the next reporting period so as not to exceed the budget.
The Suzlon approach:
If you are responsible for recording transactions or events into Suzlon records, don‟t
intentionally delay them, or intentionally record incorrect, incomplete or misleading
information.
Do provide timely, accurate and complete information to those colleagues who report the
same.
GIFTS AND ENTERTAINMENT
You should neither accept nor offer gifts (including entertainment) from or to any internal or
external party.
Examples of non-compliant behavior or practices include:
At Christmas, a consultant sends you an expensive exclusive watch to thank you for
the good working relationship. You thank him and keep the watch.
A supplier offers you a free trip in a holiday resort to thank you for the business
received from Suzlon (even if he doesn‟t say so explicitly).
The Suzlon approach:
Except token gifts (e.g. one bottle of wine, a book, an agenda, a pen,…), never give or accept
gifts. In case it would be embarrassing or impolite to refuse, you may ask a special
authorization from your Regional Ethics Officer. In such case, the gift will be accepted on
behalf of the company and turned over for company use (through the Regional Ethics
Officer).
25
CORRUPTION AND BRIBERY
You will refrain from getting involved in any practice that constitutes or can be perceived to
constitute an act of corruption or bribery. Corruption or bribery is defined as the receiving or
the offering of an undue reward -financial, in kind or of any other nature- to any internal or
external party, regardless of the actual motivation.
Examples of non-compliant behavior or practices include:
A supplier gives you a lump sum, or any other consideration, in order to secure orders from
Suzlon or he gives you a commission calculated on the basis of past order
GOVERNMENT RELATIONS
It is the Company's policy to comply fully with all applicable laws and regulations governing
contact and dealings with government employees and public officials,and to adhere to high
ethical, moral and legal standards of business conduct. This policy includes strict compliance
with all central, local, state, federal, foreign and other applicable laws, rules and regulations.
If you have any questions concerning government relations you should contact the
Company's Legal Department. You must refrain from giving money or gifts to an official or
an employee of a government entity if doing so could be reasonably construed as having any
connection with the Company‟s business relationship. The respective laws in most countries
prohibit such actions or payment and adherence to such laws are prerequisite before dealing
with any official or employee of a government. Any proposed payment or gift to a foreign
official, political party or candidate must have prior approval of by the Company‟s Legal
Department, even if such payment is common in that country. In countries where local
customs call for giving gifts to customers or others on special occasions, you may, with prior
approval from management and Legal Department, present gifts that are lawful, appropriate
and of nominal value, provided the action cannot be seen as seeking special favour.
LOBBYING
Employees, agents or contractors whose work requires lobbying communication with any
member or employee of a legislative body or with any government official or employee in the
formulation of legislation must have prior written approval of such activity from the
Company's Chief Financial Officer. Activity covered by this policy includes meetings with
26
legislators or members of their staffs or with senior executive branch officials. Preparation,
research, and other background activities that are done in support of lobbying communication
are also covered by this policy even if the communication ultimately is not made.
GOVERNMENT CONTRACTS
It is the Company's policy to comply fully with all applicable laws and regulations that apply
to government contracting. It is also necessary to strictly adhere to all terms and conditions of
any contract with central, local, state, federal, foreign or other applicable governments. The
Company's Legal Department must review and approve all contracts with any government
entity.
FREE AND FAIR COMPETITION/ANTITRUST
The Company is required to furnish promptly any request to support a boycott or information
concerning a boycott. A foreign country or an entity associated with the country could make
such a request in a bid invitation, purchase order or contract, letter of credit or orally in
connection with a transaction or in a number of ways. If you hear of a boycott or receive a
request to support a boycott or to provide information related to a boycott, you should contact
your manager or the Legal Department of the Company.
INDUSTRIAL ESPIONAGE
It is the Company's policy to lawfully compete in the marketplace. This commitment to
fairness includes respecting the rights of our competitors and abiding by all applicable laws in
the course of competing. The purpose of this policy is to maintain the Company's reputation
as a lawful competitor and to help ensure the integrity of the competitive marketplace.
Company employees, agents and contractors may not steal or unlawfully use the information,
material, products, intellectual property, or proprietary or confidential information of anyone
including suppliers, customers, business partners or competitors.
27
Horizontal analysis
28
Balance Sheet of Suzlon Energy in Rs. Cr in Rs. Cr Increase/Decrease
Mar '12 Mar '11 rs.in.cr %age
Sources Of Funds
Total Share Capital 355.47 355.47 0 0
Equity Share Capital 355.47 355.47 0 0
Share Application Money 0 20.43 -20.43 -100
Preference Share Capital 0 0 0 0
Reserves 5,142.44 6,418.58 -1276.14 -19.881968
Revaluation Reserves 0 0 0 0
Networth 5,497.91 6,794.48 -1296.57 -19.082697
Secured Loans 4,923.03 4,395.74 527.29 11.995477
Unsecured Loans 1,493.19 2,281.59 -788.4 -34.55485
Total Debt 6,416.22 6,677.33 -261.11 -3.9103953
Total Liabilities 11,914.13 13,471.81 -1557.68 -11.562515
Application Of Funds 0 0
Gross Block 1,623.30 1,439.52 183.78 12.766756
Less: Accum. Depreciation
656.02 576.35 79.67 13.823198
Net Block 967.28 863.17 104.11 12.061355
Capital Work in Progress 15.87 38.15 -22.28 -58.401048
Investments 8,815.62 7,845.07 970.55 12.371464
Inventories 1,465.94 1,014.95 450.99 44.434701
Sundry Debtors 3,437.93 2,283.90 1154.03 50.52892
Cash and Bank Balance 262.65 129.64 133.01 102.59951
Total Current Assets 5,166.52 3,428.49 1738.03 50.693746
Loans and Advances 5,450.55 4,994.03 456.52 9.1413147
Fixed Deposits 207.46 301.42 -93.96 -31.17245 Total CA, Loans & Advances 10,824.53 8,723.94 2100.59 24.078455
Deffered Credit 0 0 0 0
Current Liabilities 7,231.17 3,606.83 3624.34 100.48547
Provisions 1,478.00 391.69 1086.31 277.33922
Total CL & Provisions 8,709.17 3,998.52 4710.65 117.80984
Net Current Assets 2,115.36 4,725.42 -2610.06 -55.234455
Miscellaneous Expenses 0 0 0 0
Total Assets 11,914.13 13,471.81 -1557.68 -11.562515
Contingent Liabilities 3,595.47 3,526.50 68.97 1.9557635
Book Value (Rs) 30.93 38.11 -7.18 -18.840199
29
Balance Sheet of Suzlon Energy
in Rs. Cr in Rs. Cr Increase/Decrease
Mar '11 Mar '10 rs.in.cr %age
Total Share Capital 355.47 311.35 44.12 14.170548
Equity Share Capital 20.43 15.72 4.71 29.961832
Share Application Money 0 0 0 0
Preference Share Capital 6,418.58 5,277.24 1141.34 21.627593
Reserves 0 0 0 0
Revaluation Reserves 6,794.48 5,604.31 1190.17 21.236691
Networth 4,395.74 3,891.16 504.58 12.967341
Secured Loans 2,281.59 3,710.06 -
1428.47 -38.502612
Unsecured Loans 6,677.33 7,601.22 -923.89 -12.154496
Total Debt 13,471.81 13,205.53 266.28 2.016428
Total Liabilities 0 0
Application Of Funds 1,439.52 1,355.74 83.78 6.179651
Gross Block 576.35 438.58 137.77 31.412741
Less: Accum. Depreciation
863.17 917.16 -53.99 -5.8866501
Net Block 38.15 10.38 27.77 267.53372
Capital Work in Progress 7,845.07 7,592.60 252.47 3.3252114
Investments 1,014.95 797.8 217.15 27.218601
Inventories 2,283.90 2,986.81 -702.91 -23.533804
Sundry Debtors 129.64 469.32 -339.68 -72.377056
Cash and Bank Balance 3,428.49 4,253.93 -825.44 -19.404174
Total Current Assets 4,994.03 4,187.79 806.24 19.252159
Loans and Advances 301.42 129.9 171.52 132.04003
Fixed Deposits 8,723.94 8,571.62 152.32 1.777027
Total CA, Loans & Advances 0 0 0 0
Deffered Credit 3,606.83 3,641.87 -35.04 -0.9621431
Current Liabilities 391.69 244.36 147.33 60.292192
Provisions 3,998.52 3,886.23 112.29 2.8894327
Total CL & Provisions 4,725.42 4,685.39 40.03 0.8543579
Net Current Assets 0 0 0 0
Miscellaneous Expenses 13,471.81 13,205.53 266.28 2.016428
Total Assets 3,526.50 2,572.67 953.83 37.07549
Contingent Liabilities 38.11 35.9 2.21 6.1559889
Book Value (Rs) 0 0
30
Balance Sheet of Suzlon Energy
in Rs. Cr in Rs. Cr Increase/Decrease
Mar '10 Mar '09 rs.in.cr %age
Total Share Capital 311.35 299.66 11.69 3.9010879
Equity Share Capital 311.35 299.66 11.69 3.9010879
Share Application Money 15.72 103.25 -87.53 -84.774818
Preference Share Capital 0 0 0 0
Reserves 5,277.24 6,177.41 -900.17 -14.571965
Revaluation Reserves 0 0 0 0
Networth 5,604.31 6,580.32 -976.01 -14.832257
Secured Loans 3,891.16 4,006.23 -115.07 -2.8722764
Unsecured Loans 3,710.06 3,323.25 386.81 11.63951
Total Debt 7,601.22 7,329.48 271.74 3.7074936
Total Liabilities 13,205.53 13,909.80 -704.27 -5.063121
Application Of Funds 0 0
Gross Block 1,355.74 915.83 439.91 48.034024
Less: Accum. Depreciation
438.58 364.33 74.25 20.379875
Net Block 917.16 551.5 365.66 66.302811
Capital Work in Progress 10.38 286.97 -276.59 -96.382897
Investments 7,592.60 7,127.80 464.8 6.5209462
Inventories 797.8 1,383.62 -585.82 -42.33966
Sundry Debtors 2,986.81 4,745.14 -1758.33 -37.055387
Cash and Bank Balance 469.32 70.95 398.37 561.47992
Total Current Assets 4,253.93 6,199.71 -1945.78 -31.385016
Loans and Advances 4,187.79 3,273.41 914.38 27.933562
Fixed Deposits 129.9 141.45 -11.55 -8.1654295 Total CA, Loans & Advances 8,571.62 9,614.57 -1042.95 -10.847599
Deffered Credit 0 0 0 0
Current Liabilities 3,641.87 3,301.77 340.1 10.300536
Provisions 244.36 369.27 -124.91 -33.826198
Total CL & Provisions 3,886.23 3,671.04 215.19 5.8618266
Net Current Assets 4,685.39 5,943.53 -1258.14 -21.168228
Miscellaneous Expenses 0 0 0 0
Total Assets 13,205.53 13,909.80 -704.27 -5.063121
Contingent Liabilities 2,572.67 7,220.74 -4648.07 -64.371103
Book Value (Rs) 35.9 43.23 -7.33 -16.955818
31
Horizontal Analyses of Suzlon Energy ltd.
Balance sheet
1. Total Assets/Liabillities up by in March 2009 to 2010 -5.06% and in March 2010 to
2011 up to 37.07% and 2011 to 2012 down to -11.56%.
2. Net worth up by in 2010-11 is 12.96% and Decrease by -19.08% and Loan and
Advancement growth 132.04% Strong Financial position in 2010 to 2011.
3. Investment grow by 27.21% in 2010 t0 2011 and decrease 6.52% in year 2009-10
4. Inventory management very efficient.Growth of inventory is 44.43%
5. Current Liabilities growth by 100% in year 2011-12.
32
suzlon energy ltd.(P&L)
in Rs. Cr in Rs. Cr Increase/Decrease
Mar '12 Mar '11 rs.in.cr %age
INCOME
Sales Turnover 6,871.99 4,358.66 2,513.33 57.662906
Excise Duty 0.78 1.11 -0.33 -29.72973
Net Sales 6,871.21 4,357.55 2,513.66 57.685167
Other Income -314.14 259.01 -573.15 -221.28489
Stock Adjustments 96.23 223.69 -127.46 -56.980643
Total Income 6,653.30 4,840.25 1,813.05 37.457776
Expenditure
Raw Materials 4,594.15 3,000.88 1,593.27 53.093426
Power & Fuel Cost 8.85 5.05 3.80 75.247525
Employee Cost 337.02 215.23 121.79 56.585978 Other Manufacturing Expenses 108.2 308.99 -200.79 -64.982686 Selling and Admin Expenses 739.44 366.38 373.06 101.82324
Miscellaneous Expenses 317.15 415.92 -98.77 -23.747355 Preoperative Exp Capitalised 0 0 0.00 0
Total Expenses 6,104.81 4,312.45 1,792.36 41.562453
PBDIT 548.49 527.8 20.69 3.9200455
Interest
864.58 631.4 233.18 36.93063
PBDT -316.09 -103.6 -212.49 205.10618
Depreciation 182.68 156.89 25.79 16.438269
Other Written Off 0 0 0.00 0
Profit Before Tax -498.77 -260.49 -238.28 91.473761
Extra-ordinary items -6.61 19.19 -25.80 -134.44502 PBT (Post Extra-ord Items) -505.38 -241.3 -264.08 109.44053
Tax 0 -55.64 55.64 -100
Reported Net Profit -505.38 -185.66 -319.72 172.20726
Total Value Addition 1,510.66 1,311.57 199.09 15.179518
Preference Dividend 0 0 0.00 0
Equity Dividend 0 0 0.00 0
Corporate Dividend Tax 0 0 0.00 0 Per share data (annualised)
Shares in issue (lakhs) 17,773.66 17,773.66 0.00 0
Earning Per Share (Rs) -2.84 -1.04 -1.80 173.07692
Equity Dividend (%) 0 0 0.00 0
Book Value (Rs) 30.93 38.11 -7.18 -18.840199
33
suzlon energy ltd.(P&L)
in Rs. Cr in Rs. Cr Increase/Decrease
Mar '11 Mar '10 rs.in.cr %age
INCOME
Sales Turnover 4,358.66 3,505.72 852.94 24.32995
Excise Duty 1.11 1.38 -0.27 -19.5652
Net Sales 4,357.55 3,504.34 853.21 24.34724
Other Income 259.01 -182.59 441.6 -241.853
Stock Adjustments 223.69 -254.97 478.66 -187.732
Total Income 4,840.25 3,066.78 1773.47 57.82841
Expenditure
Raw Materials 3,000.88 2,284.16 716.72 31.37784
Power & Fuel Cost 5.05 3.93 1.12 28.49873
Employee Cost 215.23 181.01 34.22 18.90503 Other Manufacturing Expenses 308.99 235.23 73.76 31.35654 Selling and Admin Expenses 366.38 371.27 -4.89 -1.3171
Miscellaneous Expenses 415.92 369.25 46.67 12.63913 Preoperative Exp Capitalised 0 0 0 0
Total Expenses 4,312.45 3,444.85 867.60 25.18542
PBDIT 527.8 -378.07 905.87 -239.604
Interest
631.4 734.35 -102.95 -14.0192
PBDT -103.6 -1,112.42 1008.82 -90.687
Depreciation 156.89 126.27 30.62 24.24962
Other Written Off 0 0 0 0
Profit Before Tax -260.49 -1,238.69 978.20 -78.9705
Extra-ordinary items 19.19 0 19.19 0 PBT (Post Extra-ord Items) -241.3 -1,238.69 997.39 -80.5197
Tax -55.64 175.4 -231.04 -131.722
Reported Net Profit -185.66 -1,414.09 1,228.43 -86.8707
Total Value Addition 1,311.57 1,160.69 150.88 12.99916
Preference Dividend 0 0 0.00 0
Equity Dividend 0 0 0 0
Corporate Dividend Tax 0 0 0.00 0 Per share data (annualised)
Shares in issue (lakhs) 17,773.66 15,567.32 2,206.34 14.1729
Earning Per Share (Rs) -1.04 -9.08 8.04 -88.5463
Equity Dividend (%) 0 0 0.00 0
Book Value (Rs) 38.11 35.9 2.21 6.155989
34
suzlon energy ltd.
in Rs. Cr in Rs. Cr Increase/Decrease
Mar '10 Mar '09 rs.in.cr %age
Income
Sales Turnover 3,505.72 7,254.47 -3,748.75 -51.675036
Excise Duty 1.38 2.53 -1.15 -45.454545
Net Sales 3,504.34 7,251.94 -3,747.60 -51.677206
Other Income -182.59 -869.17 686.58 -78.992602
Stock Adjustments -254.97 68.37 -323.34 -472.92672
Total Income 3,066.78 6,451.14 -3,384.36 -52.461425
Expenditure
Raw Materials 2,284.16 4,651.06 -2,366.90 -50.889475
Power & Fuel Cost 3.93 4.46 -0.53 -11.883408
Employee Cost 181.01 199.07 -18.06 -9.0721857 Other Manufacturing Expenses 235.23 286.79 -51.56 -17.978312 Selling and Admin Expenses 371.27 694.13 -322.86 -46.512901
Miscellaneous Expenses 369.25 620.08 -250.83 -40.451232 Preoperative Exp Capitalised 0 0 0.00 0
Total Expenses 3,444.85 6,455.59 -3,010.74 -46.63772
PBDIT -378.07 -4.45 -373.62 8395.9551
Interest
734.35 436.35 298.00 68.293801
PBDT -1,112.42 -440.8 -671.62 152.36388
Depreciation 126.27 99.16 27.11 27.339653
Other Written Off 0 0 0.00 0
Profit Before Tax -1,238.69 -539.96 -698.73 129.40403
Extra-ordinary items 0 0.92 -0.92 -100
PBT (Post Extra-ord Items) -1,238.69 -539.04 -699.65 129.79556
Tax 175.4 -70.69 246.09 -348.12562
Reported Net Profit -1,414.09 -469.27 -944.82 201.33825
Total Value Addition 1,160.69 1,804.53 -643.84 -35.679096
Preference Dividend 0 0 0.00 0
Equity Dividend 0 0 0.00 0
Corporate Dividend Tax 0 0 0.00 0 Per share data (annualised)
Shares in issue (lakhs) 15,567.32 14,982.95 584.37 3.9002333
Earning Per Share (Rs) -9.08 -3.13 -5.95 190.09585
Equity Dividend (%) 0 0 0.00 0
Book Value (Rs) 35.9 43.23 -7.33 -16.955818
35
Horizontal Analyses of Suzlon Energy ltd.
Profit and Loss Account
1. Net Sales Growth by 57.68% and down by -51.67%.
2. Increase in Expenses like Material cost is increased by 53%, Finance charges and
Expenses is increased by 68.29%,other Expenses is increase by 23.64%. thus we can
says that Company‟s expenses and cost increase.
3. Company‟s total Expenses is 41.56% .
4. Depriciation is increase by 27.33% compare to net sales.
5. Company‟s Other Income is Decrease at 221.28% in the year of 2011-11.
6. Company‟s PBT growth by 129.40% ,pbt is very poor because of increasing of other
expenses.
36
Common-size analysis
37
Balance sheet of Suzlon
Energy .in cr
common size
%age .in cr
common
size %age .in cr
common
size %age
Year Mar '12 Mar '11 Mar '10
Sources Of Funds
Total Share Capital 355.47 2.9836001 355.47 2.6386209 311.35 2.3577244
Equity Share Capital 355.47 2.9836001 355.47 2.6386209 311.35 2.3577244
Share Application Money 0 0 20.43 0.15165 15.72 0.119041
Preference Share Capital 0 0 0 0 0 0
Reserves 5,142.44 43.162531 6,418.58 47.644526 5,277.24 39.962349
Revaluation Reserves 0 0 0 0 0
Networth 5,497.91 46.146131 6,794.48 50.434797 5,604.31 42.439115
Secured Loans 4,923.03 41.320936 4,395.74 32.629172 3,891.16 29.46614
Unsecured Loans 1,493.19 12.532934 2,281.59 16.936032 3,710.06 29.46614
Total Debt 6,416.22 53.853869 6,677.33 49.565203 7,601.22 57.560885
Total Liabilities 11,914.13 100 13,471.81 100 13,205.53 100
Application Of Funds
Gross Block 1,623.30 13.624998 1,439.52 10.900888 1,355.74 10.266457
Less: Accum. Depreciation 656.02 0.1426877 576.35 4.2781928 438.58 3.3211844
Net Block 967.28 8.1187632 863.17 6.4072311 917.16 6.9452722
Capital Work in Progress 15.87 0.1332032 38.15 0.2831839 10.38 0.0786034
Investments 8,815.62 60.694067 7,845.07 0.1410352 7,592.60 57.49561
Inventories 1,465.94 12.304214 1,014.95 7.53388 797.8 6.0414084
Sundry Debtors 3,437.93 28.855905 2,283.90 16.953179 2,986.81 22.617873
Cash and Bank Balance 262.65 2.2045252 129.64 0.9623057 469.32 3.5539656
Total Current Assets 5,166.52 43.364643 3,428.49 25.449364 4,253.93 32.213247
Loans and Advances 5,450.55 45.748619 4,994.03 37.070223 4,187.79 31.712396
Fixed Deposits 207.46 207.46 301.42 2.2374128 129.9 0.9836788
Total CA, Loans & Advances 10,824.53 90.854557 8,723.94 64.757 8,571.62 64.909322
Deffered Credit 0 0 0 0 0 0
Current Liabilities 7,231.17 60.694067 3,606.83 26.773166 3,641.87 27.578371
Provisions 1,478.00 B30*C34/B34 391.69 2.9074787 244.36 1.8504369
Total CL & Provisions 8,709.17 73.099505 3,998.52 29.680644 3,886.23 29.428807
Net Current Assets 2,115.36 17.755052 4,725.42 35.076356 4,685.39 35.480515
Miscellaneous Expenses 0 0 0 0 0
Total Assets 11,914.13 100 13,471.81 100 13,205.53 100
Contingent Liabilities 3,595.47 30.1782 3,526.50 26.176883 2,572.67 19.481763
Book Value (Rs) 30.93 0.2596077 38.11 0.282887 35.9 0.2718558
38
Common-Sized Analysis of Suzlon Energy ltd
Balance sheet
1. Net sales of Suzlon Energy ltd in year 2010-11 is 42.43% during the year of 2011-
12,size of the company is Different Substaintualy in the Same year.
2. Loan and Advancement is 31.71% during the year of 2011 and Inventory is 6.01%
this is good for production department.
3. Total Share Capital is increased by by 2.31% , this means it is good situation for
Company .
4. Company‟s Current Liabilities is 27.57% Increased from 2010-11 to 2012. It means
Company‟s working capital is in Situation.
5. Investment of company‟s Investment is 57.49% compare to previous year. It is
increased that means position is good.
39
Profit & Loss account of
Suzlon Energy .in cr
common size %age
.in cr common
size %age .in cr
common size %age
year
Mar '12 Mar '11 Mar '10
Income
Sales Turnover 6,871.99 100.011352 4,358.66 100.025473 3,505.72 100.03938
Excise Duty 0.78 0.01135171 1.11 1.38
Net Sales 6,871.21 100 4,357.55 100 3,504.34 100
Other Income -314.14 -4.5718294 259.01 5.94393639 -182.59 -5.2103963
Stock Adjustments 96.23 1.40048114 223.69 5.13338918 -254.97 -7.2758351
Total Income 6,653.30 96.8286517 4,840.25 111.077326 3,066.78 87.5137686
Expenditure 0
Raw Materials 4,594.15 66.8608586 3,000.88 68.8662207 2,284.16 65.18089
Power & Fuel Cost 8.85 0.12879828 5.05 0.11589081 3.93 0.11214665
Employee Cost 337.02 4.90481298 215.23 4.93924338 181.01 5.1653093
Other Manufacturing Expenses 108.2 1.57468626 308.99 7.09091118 235.23 6.7125336
Selling and Admin Expenses 739.44 10.7614234 366.38 8.40793565 371.27 10.594577
Miscellaneous Expenses 317.15 4.61563538 415.92 9.54481303 369.25 10.5369342
Preoperative Exp Capitalised 0 0 0 0 0 0
Total Expenses 6,104.81 88.8462149 4,312.45 98.9650147 3,444.85 98.3023907
PBDIT
548.49 7.98243686 527.8 12.1123108 -378.07 -10.788622
Interest 864.58 12.5826456 631.4 14.4897936 734.35 20.9554438
PBDT -316.09 -4.6002087 -103.6 -2.3774828 -1,112.42 -31.744066
Depreciation 182.68 2.65862927 156.89 3.60041767 126.27 3.60324626
Other Written Off 0 0 0 0 0 0
Profit Before Tax -498.77 -7.258838 -260.49 -5.9779004 -1,238.69 -35.347312
Extra-ordinary items -6.61 -0.0961985 19.19 0.44038508 0 0
PBT (Post Extra-ord Items) -505.38 -7.3550364 -241.3 -5.5375153 -1,238.69 -35.347312
Tax 0 0 -55.64 -1.2768643 175.4 5.0052221
Reported Net Profit -505.38 -7.3550364 -185.66 -4.2606511 -1,414.09 -40.352534
Total Value Addition 1,510.66 21.9853563 1,311.57 30.098794 1,160.69 33.1215008
Preference Dividend 0 0 0 0 0 0
Equity Dividend 0 0 0 0 0 0
Corporate Dividend Tax 0 0 0 0 0 0
Per share data
(annualised) 0 0 0
Shares in issue (lakhs) 17,773.66 258.668561 17,773.66 407.881952 15,567.32 444.229727
Earning Per Share (Rs) -2.84 -0.0413319 -1.04 -0.0238666 -9.08 -0.2591073
Equity Dividend (%) 0 0 0 0 0 0
Book Value (Rs) 30.93 0.45013906 38.11 0.87457402 35.9 1.02444398
40
Profit and Loss account
1. Net Sales is 100% of Suzlon Energy Ltd in year of 2010 increase by 3504.34% and in
the year of 2011 is increase by 4357.55% and in the year of 2012 increase by
6871.21%.
2. The Suzlon Energy Ltd other income is -5.21. in the year of 2010 other income was -
182.59 and year of 2011 other Income was increase 259.01 and year of 2012 other
Income Was Decrease by -314.314 .
3. In the year of 2010 interest % was 20.95, and in the year of 2011 Interest Decrease by
14.48% and at the year of 2012 Interest rate is 12.58%.
4. By looking of Other Manufacturing Expenses is Decrease by 1.57% comparing the
year of 2011 it was 7.09%.
5. Interst rate and Other Manufacturing Expenses is decreasing and increasing it is very
different.
41
Multi-step analysis
42
Profit & Loss account of
Suzlon Energy
------------------- in Rs. Cr. -------------------
Mar '12 Mar '11 Mar '10
12 mths 12 mths 12 mths
Income
Sales Turnover 6,871.99 4,358.66 3,505.72
Excise Duty 0.78 1.11 1.38
Net Sales 6,871.21 4,357.55 3,504.34
Other Income -314.14 259.01 -182.59
Stock Adjustments 96.23 223.69 -254.97
Total Income 6,653.30 4,840.25 3,066.78
Expenditure
Raw Materials 4,594.15 3,000.88 2,284.16
Power & Fuel Cost 8.85 5.05 3.93
Employee Cost 337.02 215.23 181.01
Other Manufacturing
Expenses
108.2 308.99 235.23
Selling and Admin
Expenses
739.44 366.38 371.27
Miscellaneous Expenses 317.15 415.92 369.25
Preoperative Exp
Capitalised
0 0 0
Total Expenses 6,104.81 4,312.45 3,444.85
PBDIT 548.49 527.8 -378.07
Interest 864.58 631.4 734.35
PBDT -316.09 -103.6 -1,112.42
Depreciation 182.68 156.89 126.27
Other Written Off 0 0 0
Profit Before Tax -498.77 -260.49 -1,238.69
Extra-ordinary items -6.61 19.19 0
PBT (Post Extra-ord Items) -505.38 -241.3 -1,238.69
Tax 0 -55.64 175.4
Reported Net Profit -505.38 -185.66 -1,414.09
Total Value Addition 1,510.66 1,311.57 1,160.69
Preference Dividend 0 0 0
Equity Dividend 0 0 0
Corporate Dividend Tax 0 0 0
Per share data
(annualised)
Shares in issue (lakhs) 17,773.66 17,773.66 15,567.32
Earning Per Share (Rs) -2.84 -1.04 -9.08
Equity Dividend (%) 0 0 0
Book Value (Rs) 30.93 38.11 35.9
43
Ratio anaylsis
44
1) LIQUIDITY RATIOS:
1.1 CURRENT RATIO = Current assets/current liabilities
Current Ratio
Mar '12 Mar '11 Mar '10 Mar '09 Mar '08
Total Current Assets 5,166.52 3,428.49 4,253.93 6,199.71 4,993.79
Total CA, Loans & Advances 10,824.53 8,723.94 8,571.62 9,614.57 7,048.40
0.47 0.39 0.49 0.64 0.70
0
50
100
150
200
250
300
350
Mar '12 Mar '11 Mar '10 Mar '09 Mar '08
45
INTERPRETATION
If the C.R. is less than 2: 1, it indicates lack of liquidity and shortage of working capital
But a much higher ratio, even though it is beneficial to the short-term creditors, is not
necessarily good for the company. A much higher ratio than 2:1 may indicate the poor
investment policies of the management. So liquidity of Bank is satisfactory. C.R of the company is 64% in 2009 it decrease to 49% in 2010 and 39%. It further
increases by 47% in 2012.
46
1.2 QUICK RATIO = Quick Assets/Quick Liabilities
Quick Ratio
Mar '12 Mar '11 Mar '10 Mar '09 Mar '08
Quick Assets 5,166.52 3,428.49 4,253.93 6,199.71 4,993.79
Quick Liabilities 8,709.17 3,998.52 3,886.23 3,671.04 2,582.33
0.59 0.85 1.09 1.68 1.93
0
50
100
150
200
250
300
350
Mar '12 Mar '11 Mar '10 Mar '09 Mar '08
47
INTERPRETATION
It Shows the liquidly position of a firm.
Higher the ratio higher the liquidity position.
The Quick ratio of the company in 2009 is 100.68 % it decreased to 100.09% and
85% in 2010-11. Currently it is 59% compare to past year which is good for the
company.
48
2.0 SOLVENCY RATIO
2.1 DEBT EQUITY RATIO = Borrower‟s fund/Owners fund
Debt Equity Ratio
Mar '12 Mar '11 Mar '10 Mar '09 Mar '08
Borrower's Fund 6,416.22 6,677.33 7,601.22 7,329.48 3,084.74
Owner's Fund 5,497.91 6,794.48 5,604.31 6,580.32 6,947.66
1.16 0.98 1.35 1.11 0.44
0
50
100
150
200
250
300
350
Mar '12 Mar '11 Mar '10 Mar '09 Mar '08
49
INTERPRETATION
This ratio reflects the relative claims of creditors and shareholders against the
assets of the firm. Alternatively this ratio indicates the relative proportions of
debts and equity in financing the assets of a firm.
The debt equity ratio of the company in 2009-10 is 100.11% it increased 35 %
2010-11 and decreased 98% in 2011,current is 100.16% it is good for company.
50
2.2 INTEREST COVERAGE/DEBT SERVICE RATIO = Net profit
(before interest and taxes)/ Fixed interest Charge
Interest Coverage
Mar '12 Mar '11 Mar '10 Mar '09 Mar '08
PBDIT 548.49 527.80 -378.07 -4.45 1,584.14
Interest 864.58 631.40 734.35 436.35 142.14
0.63 0.83 -0.51 -0.010 11.14
0
50
100
150
200
250
300
350
Mar '12 Mar '11 Mar '10 Mar '09 Mar '08
51
INTERPRETATION
This ratio uses the concept of net profits before taxes because tax is calculated
after paying interest on long term loan.
This ratio as the name suggests, show how many times the interest changes are
covered by EBIT out of which they will be paid.
The coverage ratio of the company is -1% in 2009; it is decrease to -51% and
increased 83 % in 2011. It is 63% in 2012.
52
3.0 PROFITABILITY RATIO
3.1 GROSS PROFIT RATIO= PBDT/Net sales*100
Gross Profit Margin Ratio
Mar '12 Mar '11 Mar '10 Mar '09 Mar '08
PBDT -316.09 -103.60 -1,112.42 -440.80 1,442.00
Net Sales 6,871.21 4,357.55 3,504.34 7,251.94 6,942.24
-4.60 -2.37 -31.74 -6.07 20.77
0
50
100
150
200
250
300
350
Mar '12 Mar '11 Mar '10 Mar '09 Mar '08
53
.
INTERPRETATION
The gross profit ratio can also be used in determining the extent of loss caused by
theft, spoilage, damage and so on in the case of those firms which follow the
policy of fixed gross profit margin in pricing their product.
The gross profit of the company is -6.07 % in 2009 and it decreased -31.74 in
2010.-2.37% in 2011and in 2012 is for -4.60%This is good for the company.
54
3.2 NET PROFIT RATIO = Net Profit/Net Sales*100
Net Profit Ratio
Mar '12 Mar '11 Mar '10 Mar '09 Mar '08
Net Profit -505.38 -185.66 -1,414.09 -469.27 1,416.88
Net Sales 6,871.21 4,357.55 3,504.34 7,251.94 6,942.24
-7.35 -4.26 -40.35 -6.46 20.40
0
50
100
150
200
250
300
350
Mar '12 Mar '11 Mar '10 Mar '09 Mar '08
55
INTERPRETATION
The net profit ratio is indicative of management‟s ability to operate the business
with sufficient success not only to recover from revenue of the period the cost of
merchandise or services.
The higher the ratio, the better will be the profitability. In order to have a better
idea of profitability, the gross profit ratio and net profit ratio may be
simultaneously considered. If the gross profitability increases over the five years
but net profit is declining, it indicates that administrative expenses are slowly
rising.
Net profit of the company in 2009 was –6.46% and it is -40.35% in 2010. In current
year and 2011 it was decreased.
56
3.2 EARNING PER SHARE (EPS):
= Net profit after interest, tax & preference dividend /No. of equity shares*100
Earnings Per Share
Mar '12 Mar '11 Mar '10 Mar '09 Mar '08
Net Profit -505.38 -185.66 -1,414.09 -469.27 1,416.88
No. of Equity Shares 17,773.66 17,773.66 15,567.32 14,982.95 14,969.34
-2.84 -1.04 -9.08 -3.09 -9.46
0
50
100
150
200
250
300
350
Mar '12 Mar '11 Mar '10 Mar '09 Mar '08
57
INTERPRETATION
This ratio shows the profitability of the firm from the owner‟s point of view. By
comparing EPS of the current year with past years the path of the trend of
profitability can be ascertained.
It is essential that EPS of the company should be compared with the other
companies and also average of the company before giving final opinion.
The limitation of EPS is that it does not show how much dividend is actually paid
to shareholders and how much profit is retained in business.
The EPS of the company is -3.09% in 2009 .it decrease to -9.08% in 2010, -1.04%
in 2011 and currently it is -2.84%.
58
4.0 RETURN RATIOS
4.1 RETURN ON CAPITAL EMPLOYED = Gross Profit/Capital Employed*100
Return on Capital Employed
Mar
'12
Mar
'11
Mar
'10
Mar
'09
Mar
'08
Gross Profit 548.49 527.80 -378.07 -4.45 1,584.14
Share Capital + Reserve &
Surplus 355.47 355.47 311.35 299.66 299.39
Reserves 5,142.44 6,418.58 5,277.24 6,177.41 6,648.27
Capital Employed 5497.91 6774.05 5588.59 6477.07 6947.66
9.9 7.79 -6.76 -0.07 22.86
0
50
100
150
200
250
300
350
Mar '12 Mar '11 Mar '10 Mar '09 Mar '08
59
INTERPRETATION
Return on investment indicates the profitability of business and is very much in use
among financial analysis.
The ratio is an indicator of the measure of the success of a business from the
owners‟ point of view. The ultimate interest of any business is the rate of return on
invested capital. It may be measured by the ratio of income to equality capital.
ROI of company is -0.07% in 2009-10 it increase to -6.76% in 2010-11 and it is
9.9% in 2012. It is beneficial for company.
60
4.2 RETURN ON TOTAL ASSETS = Net Sales/Total Assets
Return On Total Assets
Mar '12 Mar '11 Mar '10 Mar '09 Mar '08
Net Profit -505.38 -185.66 -1,414.09 -469.27 1,416.88
Total Assets 11,914.13 13,471.81 13,205.53 13,909.80 10,032.40
- 0.024 -0.01 -0.10 -0.03 0.14
INTERPRETATION
In 2009 ROTA -0.03%, and it increased by -0.10% in 2010. And Present year it
was -0.024%.
0
50
100
150
200
250
300
350
Mar '12 Mar '11 Mar '10 Mar '09 Mar '08
61
5.0 TURNOVER RATIO:
5.1 FIXED ASSETS TURNOVER RATIO = Net Sales/Total Fixed Assets
Fixed Assets Turnover Ratio
Mar '12 Mar '11 Mar '10 Mar '09 Mar '08
Net Sales 6,871.21 4,357.55 3,504.34 7,251.94 6,942.24
Net Block 967.28 863.17 917.16 551.50 512.22
Capital Work in Progress 15.87 38.15 10.38 286.97 134.63
Total Fixed Assets 983.15 901.32 927.54 338.47 646.85
6.98 4.83 3.77 21.42 10.73
0
50
100
150
200
250
300
350
Mar '12 Mar '11 Mar '10 Mar '09 Mar '08
62
INTERPRETATION
To ascertain efficiency and profitability of the business. The higher the turnover
ratio, the more efficiency is the management and utilization of the assets while
low turnover ratios are indicative of underutilization of available resources.
The fixed asset turnover ratio of the company is 4.25% in 2009 and it drecreased
By 3.77% in 2010 and Present yearit was near by 6.98%.
63
5.2 NETWORTH TURNOVER RATIO = Net Sales/Networth
Networth Turnover Ratio
Mar '12 Mar '11 Mar '10 Mar '09 Mar '08
Net Sales 6,871.21 4,357.55 3,504.34 7,251.94 6,942.24
Networth 5,497.91 6,794.48 5,604.31 6,580.32 6,947.66
1.24 0.64 0.62 1.10 0.71
0
50
100
150
200
250
300
350
Mar '12 Mar '11 Mar '10 Mar '09 Mar '08
64
INTERPRETATION
It is the ratio of net profit to share holder's investment. It is the relationship
between net profit (after interest and tax) and share holder's/proprietor's fund.
This ratio establishes the profitability from the share holders' point of view. The
ratio is generally calculated in percentage.
Ratio used for measuring the overall efficiency of a firm.
The networth turnover ratio of the company was 21.42% in 2009, it decrease
slightly by 3.77% in 2010 and constantly increcreased by 6.98% in
2012.and4.83% in 2011.
65
6.0 AVERAGE COLLECTION PERIOD RATIO
AVERAGE COLLECTION PERIOD RATIO = (Trade Debtors × No. of Working
Days) / Net Credit Sales
Average collection period ratio
Mar '12 Mar '11 Mar '10 Mar '09 Mar '08
Debtors 3,437.93 2,283.90 2,986.81 4,745.14 3,306.59
Net Sales 6,871.21 4,357.55 3,504.34 7,251.94 6,942.24
182.62 191.30 311.09 238.82 173.84
0
50
100
150
200
250
300
350
Mar '12 Mar '11 Mar '10 Mar '09 Mar '08
66
INTERPRETATION
This ratio measures the quality of debtors.
A short collection period implies prompt payment by debtors. It reduces the
chances of bad debts. Similarly, a longer collection period implies too liberal and
inefficient credit collection performance. It is difficult to provide a standard
collection period of debtors.
Average collection period allowed to debtor was 298 days in 2009 it was
increcreased upto 311 days and constantly decreasedsed for two years 2011-12 .
67
Bibliography
68
Bibliography:-
website
www.maonycontrol.com
www.autherstrem.com
www.suzlonenergy.com
Book
Ch:18 Financial Statement Anaylysis And The Tool Kit Of The Analyst:1
Book name:-Financial Accounting For Management(Edition 4)
Author name:-Ambrish Gupta
69
Balance Sheet
70
Balance Sheet of Suzlon Energy ------------------- in Rs. Cr. -------------------
Mar '12 Mar '11 Mar '10 Mar '09 Mar '08
12 mths 12 mths 12 mths 12 mths 12 mths
Sources Of Funds
Total Share Capital 355.47 355.47 311.35 299.66 299.39
Equity Share Capital 355.47 355.47 311.35 299.66 299.39
Share Application Money 0.00 20.43 15.72 103.25 0.00
Preference Share Capital 0.00 0.00 0.00 0.00 0.00
Reserves 5,142.44 6,418.58 5,277.24 6,177.41 6,648.27
Revaluation Reserves 0.00 0.00 0.00 0.00 0.00
Networth 5,497.91 6,794.48 5,604.31 6,580.32 6,947.66
Secured Loans 4,923.03 4,395.74 3,891.16 4,006.23 672.26
Unsecured Loans 1,493.19 2,281.59 3,710.06 3,323.25 2,412.48
Total Debt 6,416.22 6,677.33 7,601.22 7,329.48 3,084.74
Total Liabilities 11,914.13 13,471.81 13,205.53 13,909.80 10,032.40
Mar '12 Mar '11 Mar '10 Mar '09 Mar '08
12 mths 12 mths 12 mths 12 mths 12 mths
Application Of Funds
Gross Block 1,623.30 1,439.52 1,355.74 915.83 779.20
Less: Accum. Depreciation 656.02 576.35 438.58 364.33 266.98
Net Block 967.28 863.17 917.16 551.50 512.22
Capital Work in Progress 15.87 38.15 10.38 286.97 134.63
Investments 8,815.62 7,845.07 7,592.60 7,127.80 4,919.48
Inventories 1,465.94 1,014.95 797.80 1,383.62 1,483.23
Sundry Debtors 3,437.93 2,283.90 2,986.81 4,745.14 3,306.59
Cash and Bank Balance 262.65 129.64 469.32 70.95 203.97
Total Current Assets 5,166.52 3,428.49 4,253.93 6,199.71 4,993.79
Loans and Advances 5,450.55 4,994.03 4,187.79 3,273.41 1,383.08
Fixed Deposits 207.46 301.42 129.90 141.45 671.53
Total CA, Loans & Advances 10,824.53 8,723.94 8,571.62 9,614.57 7,048.40
Deffered Credit 0.00 0.00 0.00 0.00 0.00
Current Liabilities 7,231.17 3,606.83 3,641.87 3,301.77 1,946.67
Provisions 1,478.00 391.69 244.36 369.27 635.66
Total CL & Provisions 8,709.17 3,998.52 3,886.23 3,671.04 2,582.33
Net Current Assets 2,115.36 4,725.42 4,685.39 5,943.53 4,466.07
Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00
Total Assets 11,914.13 13,471.81 13,205.53 13,909.80 10,032.40
Contingent Liabilities 3,595.47 3,526.50 2,572.67 7,220.74 7,584.65
Book Value (Rs) 30.93 38.11 35.90 43.23 46.41
71
Profit & Loss A/C.
72
Profit & Loss account of Suzlon Energy
------------------- in Rs. Cr. -------------------
Mar '12 Mar '11 Mar '10 Mar '09 Mar '08
12 mths 12 mths 12 mths 12 mths 12 mths
Income
Sales Turnover 6,871.99 4,358.66 3,505.72 7,254.47 6,945.13
Excise Duty 0.78 1.11 1.38 2.53 2.89
Net Sales 6,871.21 4,357.55 3,504.34 7,251.94 6,942.24
Other Income -314.14 259.01 -182.59 -869.17 -18.97
Stock Adjustments 96.23 223.69 -254.97 68.37 154.14
Total Income 6,653.30 4,840.25 3,066.78 6,451.14 7,077.41
Expenditure
Raw Materials 4,594.15 3,000.88 2,284.16 4,651.06 4,429.10
Power & Fuel Cost 8.85 5.05 3.93 4.46 4.48
Employee Cost 337.02 215.23 181.01 199.07 139.34
Other Manufacturing Expenses 108.20 308.99 235.23 286.79 382.20
Selling and Admin Expenses 739.44 366.38 371.27 694.13 516.40
Miscellaneous Expenses 317.15 415.92 369.25 620.08 21.75
Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00
Total Expenses 6,104.81 4,312.45 3,444.85 6,455.59 5,493.27
Mar '12 Mar '11 Mar '10 Mar '09 Mar '08
12 mths 12 mths 12 mths 12 mths 12 mths
Operating Profit 862.63 268.79 -195.48 864.72 1,603.11
PBDIT 548.49 527.80 -378.07 -4.45 1,584.14
Interest 864.58 631.40 734.35 436.35 142.14
PBDT -316.09 -103.60 -1,112.42 -440.80 1,442.00
Depreciation 182.68 156.89 126.27 99.16 86.21
Other Written Off 0.00 0.00 0.00 0.00 0.00
Profit Before Tax -498.77 -260.49 -1,238.69 -539.96 1,355.79
Extra-ordinary items -6.61 19.19 0.00 0.92 -0.13
PBT (Post Extra-ord Items) -505.38 -241.30 -1,238.69 -539.04 1,355.66
Tax 0.00 -55.64 175.40 -70.69 89.95
Reported Net Profit -505.38 -185.66 -1,414.09 -469.27 1,416.88
Total Value Addition 1,510.66 1,311.57 1,160.69 1,804.53 1,064.17
Preference Dividend 0.00 0.00 0.00 0.00 0.00
Equity Dividend 0.00 0.00 0.00 0.00 149.69
Corporate Dividend Tax 0.00 0.00 0.00 0.00 25.44
Per share data (annualised)
Shares in issue (lakhs) 17,773.66 17,773.66 15,567.32 14,982.95 14,969.34
Earning Per Share (Rs) -2.84 -1.04 -9.08 -3.13 9.47
Equity Dividend (%) 0.00 0.00 0.00 0.00 50.00
Book Value (Rs) 30.93 38.11 35.90 43.23 46.41
73