A PROJECT REPORT ON RATIO ANALYSIS

OF
HUL & ITC

SUBMITTED TO:-
SUBMITTED BY:-
INTRODUCTION
RATIO ANALYSIS:
Fundamental Analysis has a very broad scope. One aspect looks at the general (qu
alitative) factors of a company. The other side considers tangible and measurabl
e factors (quantitative). This means crunching and analyzing numbers from the fi
nancial statements. If used in conjunction with other methods, quantitative anal
ysis can produce excellent results.
Ratio analysis isn't just comparing different numbers from the balance sheet, in
come statement, and cash flow statement. It's comparing the number against previ
ous years, other companies, the industry, or even the economy in general. Ratios
look at the relationships between individual values and relate them to how a co
mpany has performed in the past, and might perform in the future.
MEANING OF RATIO:
A ratio is one figure express in terms of another figure. It is a mathemat
ical yardstick that measures the relationship two figures, which are related to
each other and mutually interdependent. Ratio is express by dividing one figure
by the other related figure. Thus a ratio is an expression relating one number t
o another. It is simply the quotient of two numbers. It can be expressed as a fr
action or as a decimal or as a pure ratio or in absolute figures as so many time
s . As accounting ratio is an expression relating two figures or accounts or two s
ets of account heads or group contain in the financial statements.
MEANING OF RATIO ANALYSIS:
Ratio analysis is the method or process by which the relationship of items
or group of items in the financial statement are computed, determined and prese
nted.
Ratio analysis is an attempt to derive quantitative measure or guides conc
erning the financial health and profitability of business enterprises. Ratio ana
lysis can be used both in trend and static analysis. There are several ratios at
the disposal of an annalist but their group of ratio he would prefer depends on
the purpose and the objective of analysis.
While a detailed explanation of ratio analysis is beyond the scope of this secti
on, we will focus on a technique, which is easy to use. It can provide you with
a valuable investment analysis tool.
This technique is called cross-sectional analysis. Cross-sectional analysis comp
ares financial ratios of several companies from the same industry. Ratio analysi
s can provide valuable information about a company's financial health. A financi
al ratio measures a company's performance in a specific area. For example, you c
ould use a ratio of a company's debt to its equity to measure a company's levera
ge. By comparing the leverage ratios of two companies, you can determine which c
ompany uses greater debt in the conduct of its business. A company whose leverag
e ratio is higher than a competitor's has more debt per equity. You can use this
information to make a judgment as to which company is a better investment risk.
However, you must be careful not to place too much importance on one ratio. You
obtain a better indication of the direction in which a company is moving when se
veral ratios are taken as a group.
OBJECTIVE OF RATIOS
Ratio is work out to analyze the following aspects of business organization-
1. Solvency-
* Long term
* Short term
* Immediate
2. Stability
3. Profitability
4. Operational efficiency
5. Credit standing
6. Structural analysis
7. Effective utilization of resources
8. Leverage or external financing
FORMS OF RATIO:
Since a ratio is a mathematical relationship between to or more variable
s / accounting figures, such relationship can be expressed in different ways as
follows
A] As a pure ratio:
For example the equity share capital of a company is Rs. 20,00,000 & the
preference share capital is Rs. 5,00,000, the ratio of equity share capital to
preference share capital is 20,00,000: 5,00,000 or simply 4:1.
B] As a rate of times:
In the above case the equity share capital may also be described as 4 t
imes that of preference share capital. Similarly, the cash sales of a firm are
Rs. 12,00,000 & credit sales are Rs. 30,00,000. so the ratio of credit sales to
cash sales can be described as 2.5 [30,00,000/12,00,000] or simply by saying th
at the credit sales are 2.5 times that of cash sales.
C] As a percentage:
In such a case, one item may be expressed as a percentage of some other
item. For example, net sales of the firm are Rs.50,00,000 & the amount of the gr
oss profit is Rs. 10,00,000, then the gross profit may be described as 20% of sa
les [ 10,00,000/50,00,000]
STEPS IN RATIO ANALYSIS
The ratio analysis requires two steps as follows:
1] Calculation of ratio
2] Comparing the ratio with some predetermined standards. The standard ratio may
be the past ratio of the same firm or industry s average ratio or a projected rat
io or the ratio of the most successful firm in the industry. In interpreting the
ratio of a particular firm, the analyst cannot reach any fruitful conclusion un
less the calculated ratio is compared with some predetermined standard. The impo
rtance of a correct standard is oblivious as the conclusion is going to be based
on the standard itself.
TYPES OF COMPARISONS
The ratio can be compared in three different ways
1] Cross section analysis:
One of the way of comparing the ratio or ratios of the firm is to compar
e them with the ratio or ratios of some other selected firm in the same industry
at the same point of time. So it involves the comparison of two or more firm s fi
nancial ratio at the same point of time. The cross section analysis helps the an
alyst to find out as to how a particular firm has performed in relation to its c
ompetitors. The firms performance may be compared with the performance of the le
ader in the industry in order to uncover the major operational inefficiencies. T
he cross section analysis is easy to be undertaken as most of the data required
for this may be available in financial statement of the firm.
2] Time series analysis:
The analysis is called Time series analysis when the performance of a fi
rm is evaluated over a period of time. By comparing the present performance of a
firm with the performance of the same firm over the last few years, an assessme
nt can be made about the trend in progress of the firm, about the direction of p
rogress of the firm. Time series analysis helps to the firm to assess whether th
e firm is approaching the long-term goals or not. The Time series analysis looks
for (1) important trends in financial performance (2) shift in trend over the y
ears (3) significant deviation if any from the other set of data\
3] Combined analysis:
If the cross section & time analysis, both are combined together to study
the behavior & pattern of ratio, then meaningful & comprehensive evaluation of t
he performance of the firm can definitely be made. A trend of ratio of a firm co
mpared with the trend of the ratio of the standard firm can give good results. F
or example, the ratio of operating expenses to net sales for firm may be higher
than the industry average however, over the years it has been declining for the
firm, whereas the industry average has not shown any significant changes.
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T 
The combined analysis as depicted in the above diagram, which clearly shows that
the ratio of the firm is above the industry average, but it is decreasing over
the years & is approaching the industry average.
PRE-REQUISITES TO RATIO ANALYSIS
In order to use the ratio analysis as device to make purposeful conclusi
ons, there are certain pre-requisites, which must be taken care of. It may be no
ted that these prerequisites are not conditions for calculations for meaningful
conclusions. The accounting figures are inactive in them & can be used for any r
atio but meaningful & correct interpretation & conclusion can be arrived at only
if the following points are well considered.
1. The dates of different financial statements from where data is taken must be
same.
2. If possible, only audited financial statements should be considered, otherwis
e there must be sufficient evidence that the data is correct.
3. Accounting policies followed by different firms must be same in case of cross
section analysis otherwise the results of the ratio analysis would be distorted
.
4. One ratio may not throw light on any performance of the firm. Therefore, a gr
oup of ratios must be preferred. This will be conductive to counter checks.
5. Last but not least, the analyst must find out that the two figures being used
to calculate a ratio must be related to each other, otherwise there is no purpo
se of calculating a ratio.

CLASSIFICATION OF RATIO

BASED ON FINANCIAL BASED ON FUNCTION BASED ON USER

STATEMENT

1] BALANCE SHEET 1] LIQUIDITY RATIO 1] RATIOS FOR

RATIO 2] LEVERAGE RATIO SHORT TERM
2] REVENUE 3] ACTIVITY RATIO CREDITORS
STATEMENT 4] PROFITABILITY 2] RATIO FOR
RATIO RATIO
SHAREHOLDER
3] COMPOSITE 5] COVERAGE 3] RATIOS FO
R
RATIO RATIO
MANAGEMENT

4] RATIO FOR
LONG TERM
CREDITORS
BASED ON FINANCIAL STATEMENT
Accounting ratios express the relationship between figures taken from financial
statements. Figures may be taken from Balance Sheet , P& P A/C, or both. One-way
of classification of ratios is based upon the sources from which are taken.
1] Balance sheet ratio:
If the ratios are based on the figures of balance sheet, they are called
Balance Sheet Ratios. E.g. ratio of current assets to current liabilities or ra
tio of debt to equity. While calculating these ratios, there is no need to refer
to the Revenue statement. These ratios study the relationship between the asset
s & the liabilities, of the concern. These ratio help to judge the liquidity, so
lvency & capital structure of the concern. Balance sheet ratios are Current rati
o, Liquid ratio, and Proprietory ratio, Capital gearing ratio, Debt equity ratio
, and Stock working capital ratio.
2] Revenue ratio:
Ratio based on the figures from the revenue statement is called revenue
statement ratios. These ratio study the relationship between the profitability &
the sales of the concern. Revenue ratios are Gross profit ratio, Operating rati
o, Expense ratio, Net profit ratio, Net operating profit ratio, Stock turnover r
atio.
3] Composite ratio:
These ratios indicate the relationship between two items, of which one i
s found in the balance sheet & other in revenue statement.
There are two types of composite ratios-
* Some composite ratios study the relationship between the profits & the investm
ents of the concern. E.g. return on capital employed, return on proprietors fund
, return on equity capital etc.
* Other composite ratios e.g. debtors turnover ratios, creditors turnover ratios
, dividend payout ratios, & debt service ratios

BASED ON FUNCTION:
Accounting ratios can also be classified according to their functions in to liqu
idity ratios, leverage ratios, activity ratios, profitability ratios & turnover
ratios.
1] Liquidity ratios:
It shows the relationship between the current assets & current liabiliti
es of the concern e.g. liquid ratios & current ratios.
2] Leverage ratios:
It shows the relationship between proprietors funds & debts used in fin
ancing the assets of the concern e.g. capital gearing ratios, debt equity ratios
, & Proprietory ratios.
3] Activity ratios:
It shows relationship between the sales & the assets. It is also known a
s Turnover ratios & productivity ratios e.g. stock turnover ratios, debtors turn
over ratios.
4] Profitability ratios:
a) It shows the relationship between profits & sales e.g. operating ratios, gros
s profit ratios, operating net profit ratios, expenses ratios
b) It shows the relationship between profit & investment e.g. return on investme
nt, return on equity capital.
5] Coverage ratios:
It shows the relationship between the profit on the one hand & the claim
s of the outsiders to be paid out of such profit e.g. dividend payout ratios & d
ebt service ratios.
BASED ON USER:
1] Ratios for short-term creditors:
Current ratios, liquid ratios, stock working capital ratios
2] Ratios for the shareholders:
Return on proprietors fund, return on equity capital
3] Ratios for management:
Return on capital employed, turnover ratios, operating ratios, expenses
ratios
4] Ratios for long-term creditors:
Debt equity ratios, return on capital employed, proprietor ratios.

ADVANTAGES OF RATIO ANALYSIS

Financial ratios are essentially concerned with the identification of significan
t accounting data relationships, which give the decision-maker insights into the
financial performance of a company. The advantages of ratio analysis can be sum
marized as follows:
* Ratios facilitate conducting trend analysis, which is important for decision m
aking and forecasting.
* Ratio analysis helps in the assessment of the liquidity, operating efficiency,
profitability and solvency of a firm.
* Ratio analysis provides a basis for both intra-firm as well as inter-firm comp
arisons.
* The comparison of actual ratios with base year ratios or standard ratios helps
the management analyze the financial performance of the firm.
LIMITATIONS OF RATIO ANALYSIS
Ratio analysis has its limitations. These limitations are described below:
1] Information problems
* Ratios require quantitative information for analysis but it is not decisive ab
out analytical output .
* The figures in a set of accounts are likely to be at least several months out
of date, and so might not give a proper indication of the company s current financ
ial position.
* Where historical cost convention is used, asset valuations in the balance shee
t could be misleading. Ratios based on this information will not be very useful
for decision-making.
2] Comparison of performance over time
* When comparing performance over time, there is need to consider the changes in
price. The movement in performance should be in line with the changes in price.
* When comparing performance over time, there is need to consider the changes in
technology. The movement in performance should be in line with the changes in t
echnology.
* Changes in accounting policy may affect the comparison of results between diff
erent accounting years as misleading.
3] Inter-firm comparison
* Companies may have different capital structures and to make comparison of perf
ormance when one is all equity financed and another is a geared company it may n
ot be a good analysis.
* Selective application of government incentives to various companies may also d
istort intercompany comparison. comparing the performance of two enterprises may
be misleading.
* Inter-firm comparison may not be useful unless the firms compared are of the s
ame size and age, and employ similar production methods and accounting practices
.
* Even within a company, comparisons can be distorted by changes in the price le
vel.
* Ratios provide only quantitative information, not qualitative information.
* Ratios are calculated on the basis of past financial statements. They do not i
ndicate future trends and they do not consider economic conditions.

PURPOSE OF RATIO ANALYSIS:

1] To identify aspects of a businesses performance to aid decision making
2] Quantitative process may need to be supplemented by qualitative
Factors to get a complete picture.
3] 5 main areas:-
* Liquidity the ability of the firm to pay its way
* Investment/shareholders information to enable decisions to be made on the exte
nt of the risk and the earning potential of a business investment
* Gearing information on the relationship between the exposure of the business t
o loans as opposed to share capital
* Profitability how effective the firm is at generating profits given sales and
or its capital assets
* Financial the rate at which the company sells its stock and the efficiency wit
h which it uses its assets
ROLE OF RATIO ANALYSIS:
It is true that the technique of ratio analysis is not a creative techni
que in the sense that it uses the same figure & information, which is already ap
pearing in the financial statement. At the same time, it is true that what can b
e achieved by the technique of ratio analysis cannot be achieved by the mere pre
paration of financial statement.
Ratio analysis helps to appraise the firm in terms of their profitability
& efficiency of performance, either individually or in relation to those of othe
r firms in the same industry. The process of this appraisal is not complete unti
l the ratio so computed can be compared with something, as the ratio all by them
do not mean anything. This comparison may be in the form of intra firm comparis
on, inter firm comparison or comparison with standard ratios. Thus proper compar
ison of ratios may reveal where a firm is placed as compared with earlier period
or in comparison with the other firms in the same industry.
Ratio analysis is one of the best possible techniques available to the man
agement to impart the basic functions like planning & control. As the future is
closely related to the immediate past, ratio calculated on the basis of histori
cal financial statements may be of good assistance to predict the future. Ratio
analysis also helps to locate & point out the various areas, which need the mana
gement attention in order to improve the situation.
As the ratio analysis is concerned with all the aspect of a firms financia
l analysis i.e. liquidity, solvency, activity, profitability & overall performan
ce, it enables the interested persons to know the financial & operational charac
teristics of an organisation & take the suitable decision.
COMPANY PROFILE
Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods C
ompany, touching the lives of two out of three Indians with over 20 distinct cat
egories in Home & Personal Care Products and Foods & Beverages. The company was
renamed in late June 2007 to "Hindustan Unilever Limited , to provide the optimum
balance between maintaining heritage of the company and future benefits. HUL hol
ds 100 factories across India for manufacturing its diverse product range.
The turnover was Rs. 20,239 Crores in the last fiscal year ended by March 31st ,
2009.
HUL has more than 15,000 employee, including over 1,400 managers.
HUL is a subsidiary of Unilever, one of the world s leading suppliers of fast movi
ng consumer goods with strong local roots in more than 100 countries across the
globe with annual sales of 40.5 billion is holding 52 % share in HUL.
On November 27th 1931, Unilever set up its first Indian subsidiary of Hindustan
Vanaspati Manufacturing Co. Lever brothers India Ltd. Incorporated on October 17
th 1933. United Traders Limited incorporated on May 11th 1935. In 1956, Three comp
anies merged to form Hindustan Lever Limited , with 10% Indian equity participation
. July 19th 2007, changed the name to Hindustan Unilever Limited.
HUL offered 10 % share for Indian market, being the first among the foreign subs
idiaries to do so. HUL meets everyday needs for nutrition, hygiene, & Personal c
are, with brands that help people feel good, look good and get more out of life.
HUL is rated among the top four companies globally in the list of Global Top Comp
anies for Leaders by a study sponsored by Hewitt Associates in partnership with F
ortune Magazine and the RBL group. HUL is the No. 1 company in the Asia Pacific
region and in India in the same survey. HUL completed 75 years on October 17th,
2008.
Vision
> To meet consumer needs they will respect the concerns of their consumers & of
society.
> To make injury free organization.
Mission
> To add vitality to life.
> Bring safety on top of mind for employees & will integrate it with all busines
s processes & ensuring a safe & healthy work environment.
ITC
ITC is one of India's foremost private sector companies with a market capitalisa
tion of nearly US $ 14 billion and a turnover of over US $ 5 billion.* ITC is ra
ted among the World's Best Big Companies, Asia's 'Fab 50' and the World's Most R
eputable Companies by Forbes magazine, among India's Most Respected Companies by
BusinessWorld and among India's Most Valuable Companies by Business Today. ITC
ranks among India's `10 Most Valuable (Company) Brands', in a study conducted by
Brand Finance and published by the Economic Times. ITC also ranks among Asia's
50 best performing companies compiled by Business Week.
ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Pa
pers, Packaging, Agri-Business, Packaged Foods & Confectionery, Information Tech
nology, Branded Apparel, Personal Care, Stationery, Safety Matches and other FMC
G products. While ITC is an outstanding market leader in its traditional busines
ses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, it is rapidl
y gaining market share even in its nascent businesses of Packaged Foods & Confec
tionery, Branded Apparel, Personal Care and Stationery.
As one of India's most valuable and respected corporations, ITC is widely percei
ved to be dedicatedly nation-oriented. Chairman Y C Deveshwar calls this source
of inspiration "a commitment beyond the market". In his own words: "ITC believes
that its aspiration to create enduring value for the nation provides the motive
force to sustain growing shareholder value. ITC practices this philosophy by no
t only driving each of its businesses towards international competitiveness but
by also consciously contributing to enhancing the competitiveness of the larger
value chain of which it is a part."
ITC's diversified status originates from its corporate strategy aimed at creatin
g multiple drivers of growth anchored on its time-tested core competencies: unma
tched distribution reach, superior brand-building capabilities, effective supply
chain management and acknowledged service skills in hoteliering. Over time, the
strategic forays into new businesses are expected to garner a significant share
of these emerging high-growth markets in India.
ITC's Agri-Business is one of India's largest exporters of agricultural products
. ITC is one of the country's biggest foreign exchange earners (US $ 3.2 billion
in the last decade). The Company's 'e-Choupal' initiative is enabling Indian ag
riculture significantly enhance its competitiveness by empowering Indian farmers
through the power of the Internet. This transformational strategy, which has al
ready become the subject matter of a case study at Harvard Business School, is e
xpected to progressively create for ITC a huge rural distribution infrastructure
, significantly enhancing the Company's marketing reach.
RATIO ANALYSIS OF HUL & ITC
Liquidity Ratio:
Current Ratio
Current Ratio = Current Assets/ Current LiabilitieS
 EMBED MSGraph.Chart.8 \s 
Inference: Here on the basis of above graph it is clear that ITC has higher curr
ent ratio as compare to HUL so ITC will be more efficiently able to meet its sho
rt term obligation.
But there is an improvement in the position of HUL and there is decline in case
of ITC.
Quick Ratio
Quick Ratio = (Current Assets - Inventory)/ Current liability
 EMBED MSGraph.Chart.8 \s 
Inference: Here on the basis of above graph it is clear that ITC has higher quic
k ratio as compare to HUL till 2009 but this year HUL has improved its position
so it signifies that management of HUL is working more efficiently as compared t
o ITC.
Inventory Turnover Ratio
Inventory Turnover Ratio=(Sales/Average Inventory of finished goods
Average Inventory = (Opening Stock + Closing Stock) / 2

 EMBED MSGraph.Chart.8 \s 
Inference: On the basis of above graph it is clear that HUL s management is more e
fficient in converting their inventories in to cash as compared to ITC.

Leverage Ratio
Debt Equity Ratio
Debit Equity Ratio = Outside's fund / Share holder's funds
 EMBED MSGraph.Chart.8 \s 
Inference: Here on the basis of above graph it is clear that ITC has always main
tained a low level of Debt but HUL has a higher Debt Equity Ratio as compared to
ITC.
Total Asset Turnover
Total Asset Turnover = Sales turnover / assets employed

 EMBED MSGraph.Chart.8 \s 
Inference: Here on the basis of above graph it is clear that HUL has higher Fixe
d Asset turn over Ratio which signifies that management of HUL is more efficient
as compare to ITC.
Debtor Turnover Ratio
Debtor Turnover Ratio = Debtors / sales turnover
 EMBED MSGraph.Chart.8 \s 
Inference: Here we can observe that ITC has edge over HUL in the case of Debtors
conversion into cash.
Average Collection Period

Average Collection Period = Debtors / sales turnover x 365

 EMBED MSGraph.Chart.8 \s 
Inference: Here we can observe that ITC has edge over HUL in the case of Average
collection Period.
Profitability Ratio
RONW/ ROCE
Return on Capital Employed (ROCE) =(Profit / capital employed) x 100

 EMBED MSGraph.Chart.8 \s 
Inference: Here on the basis of above graph it is clear that HUL has more return
on it s net worth as compared to ITC. So investment in HUL will be more profitabl
e than ITC.
Net Profit Margin
Net Profit Margin = (Net Profit / Turnover) x 100

 EMBED MSGraph.Chart.8 \s 
Inference: Here on the basis of above graph it is clear that ITC has more net pr
ofit margin as compared to HUL. So investment in ITC will be more profitable tha
n HUL.
ANNEXURE
SUZLON
Balance sheet
€BALANCE SHEET€Mar ' 10Mar ' 09Mar ' 08Mar ' 07Mar ' 06Sources of fundsOwner's fundE
quity share capital311.35299.66299.39287.76287.53Share application money15.72103
.2500.020Preference share capital000015Reserves & surplus5,277.246,177.416,648.2
73,425.532,519.72Loan fundsSecured loans3,891.164,006.23672.26771.78276.61Unsecu
red loans3,710.063,323.252,412.48364.8658.76Total13,205.5313,909.8010,032.404,84
9.953,157.62Uses of fundsFixed assetsGross block1,355.74915.83779.2567.04400.41L
ess : revaluation reserve00000Less : accumulated depreciation438.58364.33266.981
78.57104.73Net block917.16551.5512.22388.47295.68Capital work in progress10.3828
6.97134.6392.7176.25Investments7,592.607,127.804,919.48805.26292.74Net current a
ssetsCurrent assets, loans & advances8,571.629,614.577,048.405,068.613,754.36Les
s : current liabilities & provisions3,886.233,671.042,582.331,505.101,261.41
Total net current assets
4,685.39
5,943.53
4,466.07
3,563.51
2,492.95
Miscellaneous expenses not written
0
0
0
0
0
Total
13,205.53
13,909.80
10,032.40
4,849.95
3,157.62
Notes:
Book value of unquoted investments
7,492.59
7,127.80
4,919.48
805.26
292.74Market value of quoted investments100.010000Contingent liabilities2,572.67
7,220.747,584.653,607.72251.63Number of equity sharesoutstanding (Lacs)15567.321
4982.9514969.342877.652875.31
Common Size Balance Sheet
€Mar ' 10Mar ' 09Dec ' 07Dec ' 06Dec ' 05Sources of fundsOwner's fundEquity share
capital2.36%2.15%2.98%5.93%9.11%Share application money0.12%0.74%0.00%0.00%0.00%
Preference share capital0.00%0.00%0.00%0.00%0.48%Reserves & surplus39.96%44.41%6
6.27%70.63%79.80%Loan fundsSecured loans29.47%28.80%6.70%15.91%8.76%Unsecured lo
ans28.09%23.89%24.05%7.52%1.86%Total100.00%100.00%100.00%100.00%100.00%Uses of f
undsFixed assetsGross block10.27%6.58%7.77%11.69%12.68%Less : revaluation reserv
e0.00%0.00%0.00%0.00%0.00%Less : accumulated depreciation3.32%2.62%2.66%3.68%3.3
2%Net block6.95%3.96%5.11%8.01%9.36%Capital work0in0progress0.08%2.06%1.34%1.91%
2.41%Investments57.50%51.24%49.04%16.60%9.27%Net current assetsCurrent assets, l
oans & advances64.91%69.12%70.26%104.51%118.90%Less : current liabilities & prov
isions29.43%26.39%25.74%31.03%39.95%Total net current assets35.48%42.73%44.52%73
.48%78.95%Miscellaneous expenses not written0.00%0.00%0.00%0.00%0.00%Total100.00
%100.00%100.00%100.00%100.00%Notes: Book value of unquoted investments2,724.6256
9.9313.83307.030Market value of quoted investments1,634.320000Contingent liabili
ties2,279.412,308.871,236.57213.920Number of equity sharesoutstanding (Lacs)3100
0.9526353.625928.6122595.2727425.27
Profit loss account
€€P&L€€€€Mar ' 10Mar ' 09Mar ' 08Mar ' 07Mar ' 06Income€€€€€Operating income17,769.1220,504
612,244.0211,193.88Expenses€€€€€Material consumed8,984.5010,945.717,380.726,557.336,219.10
Manufacturing expenses€498.74598.71402.99368.16360.56Personnel expenses936.31,152.
12767.81642.81591.32Selling expenses3,262.123,277.742,160.381,929.361,585.29Admi
nstrative expenses1,289.761,565.051,092.23940.67853.9Expenses capitalised00000Co
st of sales14,971.4217,539.3311,804.1310,438.339,610.18Operating profit2,797.702
,964.952,076.431,805.691,583.71Other recurring income144.36174.94180.42166.53139
Adjusted PBDIT2,942.063,139.892,256.841,972.211,722.71Financial expenses6.9825.3
225.510.7319.19Depreciation€184.03195.3138.36130.16124.45Other write offs00000Adju
sted PBT2,751.052,919.262,092.991,831.321,579.06Tax charges€648.36572.94417.14321.
8294Adjusted PAT2,102.692,346.321,675.851,509.521,285.06Non recurring items55.37
101.6247.95346.0779.01Other non cash adjustments43.9748.531.670.2144.04Reported
net profit2,202.032,496.451,925.471,855.371,408.10Earnigs before appropriation2,
678.362,693.952,729.122,506.032,052.90Equity dividend1,417.941,634.511,976.121,3
25.481,100.62Preference dividend00000Dividend tax238.03277.78355.5185.9159.62Ret
ained earnings1,022.39781.66397.5994.65792.66
Common Size P& L
€COMMON SIZE P&L€Mar ' 10Mar ' 09Mar ' 08Mar ' 07Mar ' 06Income€€€€€Operating income100.00%
.00%100.00%100.00%100.00%Expenses€€€€€Material consumed50.56%53.38%53.17%53.56%55.56%Manuf
acturing expenses€2.81%2.92%2.90%3.01%3.22%Personnel expenses5.27%5.62%5.53%5.25%5
.28%Selling expenses18.36%15.99%15.56%15.76%14.16%Adminstrative expenses7.26%7.6
3%7.87%7.68%7.63%Expenses capitalised0.00%0.00%0.00%0.00%0.00%Cost of sales84.26
%85.54%85.04%85.25%85.85%Operating profit15.74%14.46%14.96%14.75%14.15%Other rec
urring income0.81%0.85%1.30%1.36%1.24%Adjusted PBDIT16.56%15.31%16.26%16.11%15.3
9%Financial expenses0.04%0.12%0.18%0.09%0.17%Depreciation€1.04%0.95%1.00%1.06%1.11
%Other write offs0.00%0.00%0.00%0.00%0.00%Adjusted PBT15.48%14.24%15.08%14.96%14
.11%Tax charges€3.65%2.79%3.01%2.63%2.63%Adjusted PAT11.83%11.44%12.07%12.33%11.48
%Non recurring items0.31%0.50%1.79%2.83%0.71%Other non cash adjustments0.25%0.24
%0.01%0.00%0.39%Reported net profit12.39%12.18%13.87%15.15%12.58%Earnigs before
appropriation15.07%13.14%19.66%20.47%18.34%Equity dividend7.98%7.97%14.24%10.83%
9.83%Preference dividend0.00%0.00%0.00%0.00%0.00%Dividend tax1.34%1.35%2.56%1.52
%1.43%Retained earnings5.75%3.81%2.86%8.12%7.08%
JAIPRAKASH POWER VENTURES LTD
Balance sheet
€BALANCE SHEET€Mar ' 10Mar ' 09Mar ' 08Mar ' 07Mar ' 06Sources of fundsOwner's fundE
quity share capital491491491491491Share application money00000Preference share c
apital00000Reserves & surplus661.79610.03459.28229.3267.02Loan fundsSecured loan
s741.17829.581,022.801,063.981,092.51Unsecured loans00000Total1,893.961,930.611,
973.081,784.301,650.53Uses of fundsFixed assetsGross block1,848.131,722.411,715.
491,647.131,642.31Less : revaluation reserve00000Less : accumulated depreciation
264.02217.12171.3125.7155.55Net block1,584.111,505.291,544.191,521.431,486.76Cap
ital work0in0progress0.1178.4944.2148.161.74Investments75.2538.253.700Net curren
t assetsCurrent assets, loans & advances355.47431.05470.46272.4223.16Less : curr
ent liabilities & provisions120.98122.4789.4882.7196.14Total net current assets2
34.49308.58380.98189.69127.02Miscellaneous expenses not written00025.0235.01Tota
l 1,893.961,930.611,973.081,784.301,650.53Notes: Book value of unquoted investme
nts75.2538.253.700Market value of quoted investments00000Contingent liabilities6
.299.2713.9419.354.14Number of equity sharesoutstanding (Lacs)4910.014910.014910
.014910.014910.01
Common Size Balance Sheet
€COMMON SIZE BALANCE SHEET€Mar ' 10Mar ' 09Dec ' 07Dec ' 06Dec ' 05Sources of fundsO
wner's fundEquity share capital25.92%25.43%24.88%27.52%29.75%Share application m
oney0.00%0.00%0.00%0.00%0.00%Preference share capital0.00%0.00%0.00%0.00%0.00%Re
serves & surplus34.94%31.60%23.28%12.85%4.06%Loan fundsSecured loans39.13%42.97%
51.84%59.63%66.19%Unsecured loans0.00%0.00%0.00%0.00%0.00%Total100.00%100.00%100
.00%100.00%100.00%Uses of fundsFixed assetsGross block97.58%89.22%86.94%92.31%99
.50%Less : revaluation reserve0.00%0.00%0.00%0.00%0.00%Less : accumulated deprec
iation13.94%11.25%8.68%7.04%9.42%Net block83.64%77.97%78.26%85.27%90.08%Capital
work0in0progress0.01%4.07%2.24%2.70%0.11%Investments3.97%1.98%0.19%0.00%0.00%Net
current assetsCurrent assets, loans & advances18.77%22.33%23.84%15.27%13.52%Les
s : current liabilities & provisions6.39%6.34%4.54%4.64%5.82%Total net current a
ssets12.38%15.98%19.31%10.63%7.70%Miscellaneous expenses not written0.00%0.00%0.
00%1.40%2.12%Total100.00%100.00%100.00%100.00%100.00%Notes: Book value of unquot
ed investments2,724.62569.9313.83307.030Market value of quoted investments1,634.
320000Contingent liabilities2,279.412,308.871,236.57213.920Number of equity shar
esoutstanding (Lacs)31000.9526353.625928.6122595.2727425.27
Profit loss account
€€P&L€€€€Mar ' 10Mar ' 09Mar ' 08Mar ' 07Mar ' 06Income€€€€€Operating income296.67307.63335
4.99Expenses€€€€€Material consumed2.293.192.42.162.11Manufacturing expenses€4.796.212.411.6
1.79Personnel expenses8.847.485.95.274.37Selling expenses0.247.077.046.425.78Adm
instrative expenses7.17.8913.8810.029.28Expenses capitalised00000Cost of sales23
.2631.8431.6325.5623.33Operating profit273.41275.79304.14251.99281.66Other recur
ring income20.4229.6727.442.411.83Adjusted PBDIT293.83305.46331.58254.4283.49Fin
ancial expenses82.1199.38110.33101.59128.13Depreciation€46.9745.8845.6243.9583.56O
ther write offs00022.3916.31Adjusted PBT164.75160.2175.6386.4755.49Tax charges€18.
3327.3225.37.974.35Adjusted PAT146.42132.88150.3378.551.14Non recurring items3.5
612.01000Other non cash adjustments068.5149.2167.180.04Reported net profit142.86
213.4199.54145.6851.1Earnigs before appropriation611.62577.64364.24164.794.01Equ
ity dividend73.6573.650036.83Preference dividend00000Dividend tax12.5212.52005.1
6Retained earnings525.45491.47364.24164.752.02
Common Size P& L
€COMMON SIZE P&L€Mar ' 10Mar ' 09Mar ' 08Mar ' 07Mar ' 06Income€€€€€Operating income100.00%
.00%100.00%100.00%100.00%Expenses€€€€€Material consumed0.77%1.04%0.71%0.78%0.69%Manufactur
ing expenses€1.61%2.02%0.72%0.61%0.59%Personnel expenses2.98%2.43%1.76%1.90%1.43%S
elling expenses0.08%2.30%2.10%2.31%1.90%Adminstrative expenses2.39%2.56%4.13%3.6
1%3.04%Expenses capitalised0.00%0.00%0.00%0.00%0.00%Cost of sales7.84%10.35%9.42
%9.21%7.65%Operating profit92.16%89.65%90.58%90.79%92.35%Other recurring income6
.88%9.64%8.17%0.87%0.60%Adjusted PBDIT99.04%99.29%98.75%91.66%92.95%Financial ex
penses27.68%32.31%32.86%36.60%42.01%Depreciation€15.83%14.91%13.59%15.83%27.40%Oth
er write offs0.00%0.00%0.00%8.07%5.35%Adjusted PBT55.53%52.08%52.31%31.15%18.19%
Tax charges€6.18%8.88%7.53%2.87%1.43%Adjusted PAT49.35%43.19%44.77%28.28%16.77%Non
 recurring items1.20%3.90%0.00%0.00%0.00%Other non cash adjustments0.00%22.27%14
.66%24.20%0.01%Reported net profit48.15%69.37%59.43%52.49%16.75%Earnigs before a
ppropriation206.16%187.77%108.48%59.34%30.82%Equity dividend24.83%23.94%0.00%0.0
0%12.08%Preference dividend0.00%0.00%0.00%0.00%0.00%Dividend tax4.22%4.07%0.00%0
.00%1.69%Retained earnings177.12%159.76%108.48%59.34%17.06%