TERM PAPER OF

ACCOUNTS
FOR MANAGERS
(TOPIC)
CROMPTON GREAVES
LIMITED

SUBMITTED TO, SUBMITTED BY,

MR. VIKAS ANAND KRISHNA KUMAR
ROLL NO.B63
SEC. RR1002 (B63)
 CONTENTS

 Introduction of company
 Comparative Statement:- Analysis &
Interpretation
 Common size statement:- Analysis &
Interpretation
 Trend:-
Analysis & Interpretation
 Ratio:-
Analysis & Interpretation
 Fund flow statement:- Analysis &
Interpretation
 Cash flow statement:-
Analysis & Interpretation

INTRODUCTION
COMPANY BACKGROUND-

Crompton Greaves is one of India's largest private manufacturing sector

enterprises. Since 1937, the company has been responsible for the management
and application of electricity in India. Their reputation lies in designing,
manufacturing and marketing high technology electrical products and services
related to power generation, transmission and distribution, as well as undertaking
turnkey projects from concept to commissioning. The company's large customer
base includes state electricity boards, government bodies and large companies in
private and public sectors.. It designs, manufactures and markets electrical
equipment, and products and services related to power generation, transmission
and distribution. The company operates in four business lines – Power Systems,
Industrial Systems, Consumer Products and others; it offers a wide range of
products in these lines, such as power and industrial transformers, high tension
(HT) and low tension (LT) motors, DC motors, traction motors,generators, HT
circuit breakers, railway signaling equipment, lighting products, fans, pumps,
and transmission and access products.Crompton Greaves is one of the top 10
transformer manufacturers in the world.The company operates in 22
manufacturing divisions in India spanning Gujarat, Maharashtra, Goa, Madhya
Pradesh and Karnataka.With the acquisition of the Belgium-based Pauwels Group
in May 2005, the company has forayed into the global market. In the financial
year ending 31 March, 2006, Crompton Greaves (excluding Pauwels Group’s
contribution) recorded revenues of EUR 510 million, thus registering a 27 per
cent growth over the FY 2005 revenues of EUR 401 million. After considering
the contribution of the Pauwels Group (from 13 May 2005 onwards, when the
acquisition was concluded), the consolidated operating revenue of Crompton
Greaves in FY 2006 surged to EUR 810 million. Pauwels contributed 36.8 per
cent of the company’s consolidated revenue, and this contribution is expected to
grow to above 40 per cent in the coming years.
Crompton Greaves operates out of 20 divisions spread across the states
of Gujarat, Maharashtra, Goa, Madhya Pradesh, Karnataka and Tamil Nadu. An
additional 14 marketing and services branches under 4 regional state offices
augment these divisions in the cities of Delhi, Kolkata, Mumbai and Chennai. An
extensive and sophisticated communications network connects these widely-
dispersed offices, consisting of leased lines, Virtual Private Networks (VPNs) and
Very Small Aperture Terminal (VSATs) stations that transmit voice, data and video
signals via satellite. The nerve center of this network is the Kanjur Marg facility,
located in a suburb of Mumbai, where the corporate servers and IT services
reside. On this network, there is an employee intranet and an SAP ERP solution,
rolled out in 1999, that manages the diverse operations of this corporation.
Dealers, vendors, suppliers and customers across India conduct e-commerce
transactions and interface with the SAP system through portals which expedite
information gathering and facilitate various activities, such as placing orders and
tracking order status.
Security, in this operating environment, is of paramount importance, and
Crompton Greaves decided that the Linux-based firewall that they had was no
longer sufficient for the task of protecting the company's information assets.
When a network overhaul was planned, existing security policies were reviewed
and new and more stringent security requirements were proposed. "We needed a
lot of functionality that the Linux-based firewall could not easily provide. We had
to implement more De-Militarized Zones (DMZ) behind the firewall, bring in
antivirus capabilities at the edge of the network and setup an effective intrusion
detection system," said Debanjan Dutta, Head IT of Crompton Greaves .

Solution-
Crompton Greaves evaluated a number of vendors, including Stonegate,
Checkpoint, Netscreen and Cisco, but finally decided on Fortinet because of the
comprehensive unified threat management (UTM) features in the FortiGate series
of antivirus firewalls.

MANUFACTURING-
"Because of the increasing workload on our IT support team,
manageability was also high on our list of selection criteria,"Mr Dutta continued.
"The solution had to have the required security features, but we were also looking
for integrated management of the security functions, so our engineers did not
have to learn many different interfaces." The superior manageability of security
appliances and the impressive performance of the ASIC hardware-accelerated
FortiGate platforms won out over point security software and solutions from
other vendors.
Crompton Greaves purchased and deployed through IBM Global Services, a pair
of enterprise-class FortiGate antivirus firewalls, in a High-Availability (HA)
configuration, to protect the more than 2000 users on its extensive network.The
FortiGate platforms are the world's first and only ICSA-certified antivirus
gateways. They provide complete network protection services, detecting and
eliminating content-based threats from email and web traffic at the gateway.
With hardware acceleration, security functions are executed at real-time speeds,
so there is no compromise in network performance. Virus signature updates are
automated by the Forti Protect Network services feature, which pushes the latest
Countermeasures against viruses and spam to the FortiGate platforms, freeing
support staff from manual patches and updates can be time-consuming and
error-prone.

Success-
The deployment of the FortiGate platforms in Crompton Greaves' network
in November 2004 was completed in less than four hours by IBM Global Services
and was impressively painless. "It was a very smooth and easy deployment,"
explains Mr. Vijay Jayaraman, "Even with regular corporate-wide network traffic
flowing through,, the switch-over time between the existing Linux-based firewall
and the new FortiGate platforms took less than 45 minutes." As easy as the
deployment of the FortiGate platforms was for IBM Global Services, for Mr. Dutta
and Crompton Greaves, the main benefit they derived from the Fortinet solution
was freeing resources for activities that would give the company more of a
competitive advantage over its rivals. "I.T. is not our core business, but we see I.T.
as a strategic investment. Technology can be leveraged to support our core
business more effectively. Fortinet's solution provided us with not only network
security and peace of mind, but also enabled us to focus our technical staff on the
more strategic applications on our network," he explained. For any business, the
ease of deployment, manageability, breadth and depth of features and real-time
performance of Fortinet network security solutions make it a compelling
choice.FortiGate systems deliver a comprehensive range of network-level services
- including firewall, VPN, intrusion detection, intrusion prevention, content-
filtering, traffic-shaping and anti-spam. With the FortiProtect Network, FortiGate
systems can provide up-to-the-minute protection against viruses, worm’s
intrusions, inappropriate Web content and more in real time, without degrading
network performance.

Balance sheet of Crompton GREAVES LTD.

   Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
Sources of funds
Owner's fund
Equity share capital 128.30 73.32 73.32 73.32 52.37
Share application money - - - - -
Preference share capital - - - - -
Reserves & surplus 1,622.00 1,153.99 842.67 586.01 468.77
Loan funds
Secured loans 13.82 34.52 62.37 241.35 217.12
Unsecured loans 12.96 19.15 25.19 28.69 32.65
Total 1,777.08 1,280.98 1,003.55 929.36 770.91
Uses of funds
Fixed assets
Gross block 1,171.40 1,111.53 1,055.51 915.31 847.41
Less : revaluation reserve 14.42 14.58 14.76 14.97 15.24
Less : accumulated depreciation 637.59 600.82 562.80 525.31 497.69
Net block 519.39 496.13 477.95 375.03 334.48
Capital work-in-progress 33.03 12.95 22.59 43.38 14.08
Investments 688.06 265.52 194.33 135.11 102.13
Net current assets
Current assets, loans & advances 2,467.13 2,282.64 1,670.97 1,468.58 1,162.51
Less : current liabilities &
1,930.53 1,776.26 1,362.29 1,092.73 842.28
provisions
Total net current assets 536.60 506.38 308.68 375.85 320.23
Miscellaneous expenses not
- - - - -
written
Total 1,777.08 1,280.98 1,003.55 929.36 770.91
Notes:
   Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
Book value of unquoted
387.54 165.16 163.49 131.69 98.71
investments
Market value of quoted
302.97 100.44 31.17 3.68 3.73
investments
Contingent liabilities 362.56 788.21 801.03 675.38 357.03
Number of equity
6414.92 3665.67 3665.67 3665.67 523.67
sharesoutstanding (Lacs)

Profit loss account OF CROMPTON GREAVES LTD.

  Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
Income
Operating income 5,395.59 4,678.79 3,930.50 3,401.17 2,576.22
   Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
Expenses
Material consumed 3,485.15 3,099.45 2,697.98 2,490.23 1,821.11
Manufacturing expenses  231.39 202.67 151.37 38.81 33.22
Personnel expenses 255.79 227.23 200.99 174.26 154.24
Selling expenses 318.50 219.91 187.74 140.59 116.99
Adminstrative expenses 246.44 175.42 208.64 214.65 199.24
Expenses capitalised -0.04 -1.17 - - -
Cost of sales 4,537.23 3,923.51 3,446.71 3,058.52 2,324.80
Operating profit 858.36 755.28 483.79 342.64 251.43
Other recurring income 55.99 46.26 32.87 20.12 25.19
Adjusted PBDIT 914.35 801.54 516.66 362.77 276.61
Financial expenses 20.00 28.55 31.51 31.91 28.48
Depreciation  51.90 45.21 40.66 39.36 44.18
Other write offs - - - - -
Adjusted PBT 842.45 727.78 444.50 291.51 203.96
Tax charges  293.30 217.18 171.73 114.63 31.75
Adjusted PAT 549.15 510.60 272.77 176.88 172.21
Non recurring items 68.19 -113.51 41.16 15.50 -9.16
Other non cash adjustments - - - - -
Reported net profit 617.34 397.09 313.92 192.37 163.05
Earnigs before appropriation 1,428.76 936.90 623.68 373.78 232.72
Equity dividend 80.65 73.31 58.65 47.13 36.66
Preference dividend - - - - -
Dividend tax 13.70 12.46 9.97 6.61 5.14
Retained earnings 1,334.41 851.13 555.06 320.04 190.92
   Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06

Annual results in brief

  Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
Sales 5,283.99 4,903.72 4,222.60 3,659.98 2,738.58
Operating profit 857.76 638.05 483.79 341.83 232.61
Interest 4.35 14.62 27.11 30.35 26.37
Gross profit 922.16 659.48 526.31 346.36 238.98
EPS (Rs) 9.62 10.83 8.56 5.25 6.23

Annual results in details

  Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
Other income 68.75 36.05 69.63 34.88 32.74
Stock adjustment -49.29 -1.66 4.72 -34.71 -17.06
Raw material 2,657.27 2,318.21 2,114.26 2,499.02 1,787.42
Power and fuel - - - - -
Employee expenses 255.79 227.23 200.99 174.26 169.52
Excise - 293.06 346.84 292.37 217.99
Admin and selling expenses - - - - -
Research and development
- - - - -
expenses
   Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
Expenses capitalised - - - - -
Other expenses 1,562.46 1,428.83 1,072.00 387.21 348.10
Provisions made - - - - -
Depreciation 51.90 45.21 40.66 39.36 44.18
Taxation 293.30 217.18 171.73 114.63 31.75
Net profit / loss 617.34 397.09 313.92 192.37 163.05
Extra ordinary item 40.38 - - - -
Prior year adjustments - - - - -
Equity capital 128.30 73.31 73.31 73.31 52.37
Equity dividend rate - - - - -
Agg.of non-prom. shares (Lacs) 3789.65 2156.54 2214.82 2222.13 317.76
Agg.of non promotoHolding (%) 59.08 58.83 60.42 60.62 60.68
OPM (%) 16.23 13.01 11.46 9.34 8.49
GPM (%) 17.23 13.35 12.26 9.37 8.62
NPM (%) 11.53 8.04 7.31 5.21 5.88

Cash flow OF CROMPTON GREAVES LTD.

  Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06

Profit before tax 870.26 614.27 485.65 307.00 194.80

Net cash flow-operating activity 687.97 572.44 443.09 239.32 250.87

Net cash used in investing activity -451.10 -120.17 -179.34 -134.42 -70.53
   Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06

Net cash used in fin. activity -160.88 -137.41 -279.67 -56.46 -119.63

Net inc/ dec in cash and equivalent 75.99 314.86 -15.93 48.45 60.71

Cash and equivalent begin of year 472.51 157.65 173.58 125.13 64.42

Cash and equivalent end of year 548.50 472.51 157.65 173.58 125.13

Ratios OF CROMPTON GREAVES LTD.

  Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
Per share ratios
Adjusted EPS (Rs) 8.56 13.93 7.44 4.83 32.88
Adjusted cash EPS (Rs) 9.37 15.16 8.55 5.90 41.32
Reported EPS (Rs) 9.62 10.83 8.56 5.25 31.14
Reported cash EPS (Rs) 10.43 12.07 9.67 6.32 39.57
   Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
Dividend per share 2.20 2.00 1.60 1.40 7.00
Operating profit per share (Rs) 13.38 20.60 13.20 9.35 48.01
Book value (excl rev res) per share
27.28 33.48 24.99 17.99 99.52
(Rs)
Book value (incl rev res) per share
27.51 33.88 25.39 18.39 102.43
(Rs.)
Net operating income per share (Rs) 84.11 127.64 107.22 92.78 491.96
Free reserves per share (Rs) 24.98 30.95 22.46 15.46 85.81
Profitability ratios
Operating margin (%) 15.90 16.14 12.30 10.07 9.75
Gross profit margin (%) 14.94 15.17 11.27 8.91 8.04
Net profit margin (%) 11.32 8.40 7.92 5.62 6.26
Adjusted cash margin (%) 11.02 11.76 7.90 6.32 8.31
Adjusted return on net worth (%) 31.37 41.60 29.77 26.82 33.04
Reported return on net worth (%) 35.27 32.35 34.27 29.17 31.28
Return on long term funds (%) 48.53 59.04 48.20 39.35 31.90
Leverage ratios
Long term debt / Equity 0.01 0.04 0.07 0.24 0.39
Total debt/equity 0.01 0.04 0.09 0.40 0.47
Owners fund as % of total source 98.49 95.81 91.27 70.94 67.60
Fixed assets turnover ratio 4.66 4.25 3.74 3.72 3.04
Liquidity ratios
Current ratio 1.28 1.28 1.23 1.34 1.38
Current ratio (inc. st loans) 1.28 1.28 1.18 1.09 1.21
Quick ratio 1.12 1.12 1.02 1.11 1.12
Inventory turnover ratio 18.82 17.88 16.47 15.13 14.73
Payout ratios
   Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
Dividend payout ratio (net profit) 15.28 21.59 21.85 27.93 25.63
Dividend payout ratio (cash profit) 14.09 19.39 19.35 23.19 20.17
Earning retention ratio 82.82 83.21 74.85 69.62 75.73
Cash earnings retention ratio 84.31 84.57 78.11 75.15 80.69
Coverage ratios
Adjusted cash flow time total debt 0.04 0.09 0.27 1.25 1.15
Financial charges coverage ratio 45.72 28.07 16.40 11.37 9.71
Fin. charges cov.ratio (post tax) 34.46 16.49 12.25 8.26 8.28
Component ratios
Material cost component (%
65.50 66.28 68.52 75.32 71.37
earnings)
Selling cost Component 5.90 4.70 4.77 4.13 4.54
Exports as percent of total sales 22.84 24.77 19.26 18.11 18.41
Import comp. in raw mat. consumed 15.73 15.74 12.73 16.26 18.54
Long term assets / total Assets 0.33 0.25 0.29 0.27 0.27
Bonus component in equity capital
71.80 50.66 50.66 50.66 30.93
(%)

COMPARATIVE STATEMENT
Comparative analysis means to compare the financial position of
current year with previous year.

It may be defined as item by item comparison of two or more

comparable alternatives, processes, products ,qualification, set of
data, systems etc. In accounting for example, changes in a financial
statement’s items over several accounting periods may be presented
together to detect the emerging trends in the firm’s operations and
results.

In other words we may say that a method for determining the

current value of a company by examining and comp raring the
financial ratios of relevant peer groups, also often described as
comparable company analysis.

COMPARATIVE STATEMENT BALANCE SHEET(Year 08-09)

ABSOLUTE %
CHANGE CHANGE
Mar ' 10 Mar ' 09 Mar ' 08 (08-09) (08-09)
Sources of funds
Owner's fund

Equity share capital 128.3 73.32 73.32 0 0

Share application
money - - - 0 0
Preference share
capital - - - 0 0
36.9444741
Reserves & surplus 1,622.00 1,153.99 842.67 311.32 1
Loan funds 0
Secured loans 13.82 34.52 62.37 -27.85 -
44.6528779
 9
-
23.9777689
Unsecured loans 12.96 19.15 25.19 -6.04 6
27.6448607
Total 1,777.08 1,280.98 1,003.55 277.43 4
Uses of funds
Fixed assets 0 0

Gross block 1,171.40 1,111.53 1,055.51 56.02 5.30738695

-
Less : revaluation 1.21951219
reserve 14.42 14.58 14.76 -0.18 5
Less : accumulated 6.75550817
depreciation 637.59 600.82 562.8 38.02 3
3.80374516
Net block 519.39 496.13 477.95 18.18 2
-
Capital work-in- 42.6737494
progress 33.03 12.95 22.59 -9.64 5
36.6335614
Investments 688.06 265.52 194.33 71.19 7
Net current assets
Current assets, loans & 36.6056841
advances 2,467.13 2,282.64 1,670.97 611.67 2
Less : current 30.3878028
liabilities & provisions 1,930.53 1,776.26 1,362.29 413.97 9

Total net current 64.0469094

assets 536.6 506.38 308.68 197.7 2
Miscellaneous
expenses not written - - - 0 0
27.6448607
Total 1,777.08 1,280.98 1,003.55 277.43 4
Notes:
Book value of 1.02146920
unquoted investments 387.54 165.16 163.49 1.67 3
 Market value of 222.232916
quoted investments 302.97 100.44 31.17 69.27 3
-
1.60043943
Contingent liabilities 362.56 788.21 801.03 -12.82 4
Number of equity
shares outstanding
(Lacs) 6414.92 3665.67 3665.67 0 0

COMPARATIVE STATEMENT OF BALANCE SHEET(YEAR09-10)

ABSOLUTE
Mar ' Mar ' Mar ' CHANGE %
10 09 08 (09-10) CHANGE
Sources of funds
Owner's fund

Equity share capital 128.3 73.32 73.32 54.98 74.9863612

Share application
money - - - 0 0
Preference share
capital - - - 0 0

Reserves & surplus 1,622.00 1,153.99 842.67 468.01 40.5558107

Loan funds

Secured loans 13.82 34.52 62.37 -20.7 -59.965238

Unsecured loans 12.96 19.15 25.19 -6.19 -32.32376

Total 1,777.08 1,280.98 1,003.55 496.1 38.7281613
Uses of funds
Fixed assets 0 0

Gross block 1,171.40 1,111.53 1,055.51 59.87 5.38626938

Less : revaluation
reserve 14.42 14.58 14.76 -0.16 -1.0973937
Less : accumulated
depreciation 637.59 600.82 562.8 36.77 6.11996938

Net block 519.39 496.13 477.95 23.26 4.68828734

Capital work-in-
progress 33.03 12.95 22.59 20.08 155.057915

Investments 688.06 265.52 194.33 422.54 159.136788

Net current assets
Current assets, loans
& advances 2,467.13 2,282.64 1,670.97 184.49 8.0823082
Less : current
liabilities &
provisions 1,930.53 1,776.26 1,362.29 154.27 8.68510241

Total net current

assets 536.6 506.38 308.68 30.22 5.96785023
Miscellaneous
expenses not written - - - 0 0
Total 1,777.08 1,280.98 1,003.55 496.1 38.7281613
Notes:
Book value of
unquoted
investments 387.54 165.16 163.49 222.38 134.645193
Market value of
quoted investments 302.97 100.44 31.17 202.53 201.642772

Contingent liabilities 362.56 788.21 801.03 -425.65 -54.002106

Number of equity 6414.92 3665.67 3665.67 2749.25 74.9999318
 shares outstanding
(Lacs)

COMMONSIZE ANALYSIS
It is vertical analysis of financial statement, an item is used as a
base value and all other accounts in the financial statement are
compared to this base value. On the balance sheet, total assets equal
100% and each asset is stated as a percentage of total assets.
Similarly total liability and stockholders equity are assigned 100%
with a given liability or equity account stated as a percentage of
total liability and stockholders’ equity. On the income statement
100% is assigned to net sales, will all revenue and expense accounts
then related to it in percentage.

In simple we can say that common size analysis is the financial

statement displaying all items as a percentage of a common base
figure. Such a statement may be useful for noting change in the
relative size of the various elements.
Column1 Column2 Column3 Column4 Column5 Column6

Mar ' 10 Mar ' 09 % MAR '10 % MAR 09

Sources of funds
Owner's fund
Equity share capital 128.3 73.32 7.219708736 5.72374276

Share application money - - 0 0

Preference share capital - - 0 0

Reserves & surplus 1,622.00 1,153.99 138.4667919 103.81996

Loan funds
Secured loans 13.82 34.52 2.167537132 5.74548118

Unsecured loans 12.96 19.15 2.495234795 3.85987544

Total 1,777.08 1,280.98 5380.199818 9891.73745

Uses of funds
Fixed assets 0 0

Gross block 1,171.40 1,111.53 47.4802706 48.6949322

Less : revaluation
reserve 14.42 14.58 0.746945139 0.82082578

Less : accumulated
depreciation 637.59 600.82 118.8203504 118.650026

Net block 519.39 496.13 29.22715916 38.7305032

Capital work-in-
progress 33.03 12.95 1.858667027 1.01094475

Investments 688.06 265.52 38.71857204 20.7278802

Net current assets

Current assets, loans &

advances 2,467.13 2,282.64 814.3149487 2272.64038

Less : current liabilities

& provisions 1,930.53 1,776.26 532.4718667 225.353649

Total net current assets 536.6 506.38 8.364874387 13.8141186

Miscellaneous expenses
not written - - 0 0

Total 1,777.08 1,280.98 100 100

Notes: 0

Book value of unquoted

investments 387.54 165.16 21.80768452 12.8932536

Market value of quoted

investments 302.97 100.44 17.04875414 7.84087183

Contingent liabilities 362.56 788.21 20.40200779 61.531796

Number of equity
sharesoutstanding (Lacs) 6414.92 3665.67 360.980935 286.161376

TREND ANALYSIS
It is a method of time series data (information in sequence in data
over a time) analysis involving comparison of the same items (such
as monthly sales revenue figure) over a significantly long period to

(a) Detect general pattern of a relationship between

associated factor or variables and

(b) Project the future direction of this pattern

In other way we may say that it is an aspect of technical analysis

that tries to predict the future movement of a stock based on past
data. Trend analysis is based on the idea that what has happened in
the past gives trader an idea of what will happen in future.
Column1 Column2 Column3 Column4

Mar ' 10 Mar ' 09 Mar ' 08

Sources of funds
Owner's fund
Equity share capital 128.3 73.32 73.32
Share application money - - -
Preference share capital - - -
Reserves & surplus 1,622.00 1,153.99 842.67
Loan funds
Secured loans 13.82 34.52 62.37
Unsecured loans 12.96 19.15 25.19
Total 1,777.08 1,280.98 1,003.55
Uses of funds
Fixed assets
Gross block 1,171.40 1,111.53 1,055.51
Less : revaluation reserve 14.42 14.58 14.76

Less : accumulated
depreciation 637.59 600.82 562.8
Net block 519.39 496.13 477.95
Capital work-in-progress 33.03 12.95 22.59
Investments 688.06 265.52 194.33
Net current assets
Current assets, loans &
advances 2,467.13 2,282.64 1,670.97
1,930.53 1,776.26 1,362.29
Less : current liabilities &
provisions
Total net current assets 536.6 506.38 308.68
- - -
Miscellaneous expenses
not written
Total 1,777.08 1,280.98 1,003.55
Notes:
387.54 165.16 163.49
Book value of unquoted
investments
302.97 100.44 31.17
Market value of quoted
investments
Contingent liabilities 362.56 788.21 801.03
6414.9 3665.67 3665.67
Number of equity
sharesoutstanding (Lacs)

Column1 Column2 Column3

%MAR'08 %MAR'09 %MAR'10

100 100 174.9863612

100 0 0

100 0 0

100 136.9444741 192.4834158

100 55.34712201 22.15808882

100 76.02223104 51.44898769

100 127.6448607 177.0793682

0 0 0

100 105.307387 110.9795265

100 98.7804878 97.69647696

100 106.7555082 113.2889126

100 103.8037452 108.670363

100 57.32625055 146.2151394

100 136.6335615 354.0678228

100 136.6056841 147.6465765

100 130.3878029 141.7121171

100 164.0469094 173.8369833

100 0 0

100 127.6448607 177.0793682

100 101.0214692 237.0420209

100 322.2329163 971.9923003

100 98.39956057 45.26172553

100 100 174.9999318

 RATIOS OF THE COMPANY

A ratio is simply one number expressed in terms of another

number. Ratio analysis is the best known and most widely used tool of
financial analysis. In financial analysis, a ratio is used as an index or
yardstick for evaluating the financial performance of a firm.

OPERATING MARGIN = (OPERATING PROFIT/OPERATING

INCOME)*100

GROSS PROFIT MARGIN = (OPERATING PROFIT-DEPRICIACION/OPERATING INCOME)*100

NET PROFIT MARGIN = (ADJUSTED PBT/OPERATING

INCOME)

ADJUSTED CASH MARGIN = (ADJUSTED PAT/OPERATING

INCOME)

LONG TERM DEBT/EQUITY = LONG TERM LOAN /(EQUITY+RESERVES)

TOTAL DEBT /EQUITY = UNSECURED LOAN/(EQUITY+RESERVES)

CURRENT RATIO = (CURRENT ASSETS/ CURRENT LIABILITIES)

DIVIDEND PER SHARE = (EQUITY DIVIDEND/NO. OF SHARE)

OPERATING PROFIT PER SHARE = SALES(OPERATING INCOME)/NO. OF SHARE

BOOK VALUE = (SHARE +SURPLUS)/ NO. OF SHARE

NET OPERATING = SALES / NO. OF SHARE

ADJUSTED PAT/NO. OF
ADJUSTED EPS = SHARE
ADJUSTED CASH EPS = (ADJUSTED PAT + DEPRICIATION)/ NO. OF SHARE

REPORT EPS = REPORTED NET PROFIT/ NO. OF SHARE

REPORTED CASH GPS = (REPORTED NET PROFIT+ DEPRICIATION)/NO. OF SHARE

mar'10 Mar'09

14.9466 15.1763
5 6

0.15613 0.15554
7 9

0.10177 0.10913
8 1

0.00789 0.02812
6 7

0.00740 0.01560
4 3

1.27795 1.28508
5 2

0.01257 0.01999
2 9

1.27638
0.8411 1

0.25284
8 0.31481

1.27638
0.8411 1

0.08560 0.13929
5 2

0.09369 0.15162
 6 6

0.09623 0.10832
5 7

0.10432
6 0.12066

INTERPRETATION-
According to above ratios the gross profit margin is increases among the
comparison with previous year. And all the ratios are increasing in comparison
with last year 09.so we can say that the position of company is in good standard.

FUND FLOW STATEMENT-

The fund flow statement is an attempt to report the flow of funds between various
assets and liabilities and owner’s capital during an accounting period. “Funds
flow statement is prepared to indicate in summary form, changes occurring in
items of financial position between two different balance sheet dates.”Such a
statement is prepared to indicate the increases and utilization of resources of
business during an accounting period.

However, for the purpose of funds flow

statements, the term ‘funds’ means ‘Net Working Capital’ also known as ‘Net
Current Assets’. It is defined as the difference between current assets and current
liabilities.
Column1 Column2 Column3

Year 10-Mar 9-Mar

Sources of funds

Cash profit 654.11 435.11

Increase in equity 54.98 0

Increase in other
networth 0 0
Increase in loan funds 0 0

Decrease in gross block 0 0

Decrease in investments 0 0
Decrease in working
capital 0 0

Others 0 0
Total Inflow 709.09 435.11

Application of funds

Cash loss 0 0
Decrease in networth 68.68 12.46
Decrease in loan funds 26.89 33.89

Increase in gross block 79.95 46.38

Increase in investments 422.54 71.19
Increase in working
capital 30.22 197.7

Dividend 80.65 73.31

Others 0.16 0.18

Total Outflow 709.09 435.11

Cash flow statement-

A cash flow statement is statement of changes in cash position between the

beginning and end of the period .It is a statement which summaries the sources
from which cash payments are made during a particular period of time, say a
months or a year. In other words a cash flow statement shows the various sources
of cash inflow and uses of cash outflow during a period thus explaining the
changes in cash position of the business.

A cash flow statement is not very much different from a

funds flow statement. In fact, the main difference between funds flow statement
and cash flow statement
Column1 Column2 Column3
relates to meaning and
concept of the term
Mar ' 10 Mar ' 09 ‘fund’.
Profit before tax 870.26 614.27

Net cash flow-operating

activity 687.97 572.44

Net cash used in investing

activity -451.1 -120.2
Net cash used in fin. activity -160.88 -137.4

Net inc/ dec in cash and

equivalent 75.99 314.86

Cash and equivalent begin of

year 472.51 157.65

Cash and equivalent end of

year 548.5 472.51