MASTER OF BUSINESS ADMINISTRATION

ACCOUNTING FOR MANAGER

(ASSIGNMENT– 1)

TOPIC :ANALYSIS OF 25 RATIOS OF APOLLO TYERS

AND MRF TYRES.

PREPARED BY
ADILHUSEN SHAIKH (265) SHRUTI PATEL (237)
PRIYAYADAV(286) DEEP SALIYA (256)
DRASHTI UNADKAT ( 279)

S. R. LUTHRA
INSTITUTE OF MANAGEMENT
SARVAJANIK EDUCATION SOCIETY
  Apollo Tyres Ltd.

 COMPANY PROFILE

Apollo Tyres Ltd. came into inception in 1972 and

has since been a trusted name in the business of
manufacture and sale of tyres. With our corporate
headquarters in Gurgaon, India, we cater to over a
100 countries across the globe. The company
markets its products under our two global brands:
Apollo and Vredestein.

The company markets its products under our two

global brands: Apollo and Vredestein. These
products are available in countries across the globe
through a vast network of branded, exclusive and
multi-product outlets.
  APOLLO TYRES FINANCIAL
STATMENT

BALANCE SHEET MAR 20 MAR 19 MAR 18 MAR 17

OF APOLLO
TYRES (in Rs.
Cr.)
  12 mths 12 mths 12 mths 12 mths
EQUITIES AND
LIABILITIES
SHAREHOLDER'S
FUNDS
Equity Share 57.21 57.21 57.21 50.90
Capital
TOTAL SHARE 57.21 57.21 57.21 50.90
CAPITAL
Reserves and 7,634.94 7,583.96 7,203.41 5,280.29
Surplus
TOTAL 7,634.94 7,583.96 7,203.41 5,280.29
RESERVES AND
SURPLUS
TOTAL 7,692.15 7,641.16 7,260.61 5,331.19
SHAREHOLDERS
FUNDS
NON-CURRENT
LIABILITIES
Long Term 3,208.32 2,443.86 1,864.39 834.03
Borrowings
Deferred Tax 531.27 575.46 544.34 492.73
Liabilities [Net]
Other Long Term 907.44 289.48 356.50 302.70
Liabilities
Long Term 50.33 49.88 45.07 39.17
Provisions
TOTAL NON- 4,697.37 3,358.68 2,810.30 1,668.63
CURRENT
LIABILITIES
CURRENT
LIABILITIES
Short Term 1,118.07 292.51 647.42 784.00
Borrowings
Trade Payables 1,610.72 1,368.66 1,512.57 1,040.75
Other Current 1,183.50 821.95 646.56 728.44
Liabilities
Short Term 180.19 165.98 265.12 322.99
Provisions
TOTAL CURRENT 4,092.48 2,649.10 3,071.67 2,876.20
LIABILITIES
TOTAL CAPITAL 16,481.99 13,648.94 13,142.58 9,876.01
AND LIABILITIES
ASSETS
NON-CURRENT
ASSETS
Tangible Assets 9,253.16 6,368.08 5,679.32 4,770.95
Intangible Assets 32.04 31.44 34.55 24.22
Capital Work-In- 1,272.07 654.90 671.79 621.48
Progress
Other Assets 0.00 0.00 0.00 0.00
FIXED ASSETS 10,557.26 7,054.42 6,385.65 5,416.64
Non-Current 2,409.52 2,232.57 1,639.38 1,004.86
Investments
Deferred Tax 0.00 0.00 0.00 0.00
Assets [Net]
Long Term Loans 0.00 0.00 1.99 1.71
And Advances
Other Non- 597.66 851.51 238.64 263.80
Current Assets
TOTAL NON- 13,564.44 10,138.50 8,265.66 6,687.02
CURRENT
ASSETS
CURRENT
ASSETS
Current 0.00 0.00 1,339.05 394.44
Investments
Inventories 1,808.25 2,051.48 1,721.49 1,729.40
Trade 445.08 779.50 550.15 386.49
Receivables
Cash And Cash 236.58 217.57 260.52 139.38
Equivalents
Short Term Loans 0.00 0.00 576.16 175.52
And Advances
OtherCurrentAss 427.63 461.90 429.55 363.77
ets
TOTAL CURRENT 2,917.55 3,510.44 4,876.92 3,189.00
ASSETS
TOTAL ASSETS 16,481.99 13,648.94 13,142.58 9,876.01
OTHER
ADDITIONAL
INFORMATION
CONTINGENT
LIABILITIES,
COMMITMENTS
Contingent 2,704.89 4,497.96 335.34 501.38
Liabilities
CIF VALUE OF
IMPORTS
Raw Materials 2,126.61 3,340.14 2,865.74 2,324.59
Stores, Spares 0.00 0.00 0.00 0.00
And Loose Tools
Trade/Other 0.00 0.00 0.00 0.00
Goods
Capital Goods 1,335.18 171.96 525.84 1,051.84
EXPENDITURE IN
FOREIGN
EXCHANGE
Expenditure In 458.53 415.96 303.51 317.89
Foreign Currency
REMITTANCES IN
FOREIGN
CURRENCIES
FOR DIVIDENDS
Dividend -- 0.59 -- --
Remittance In
Foreign Currency
EARNINGS IN
FOREIGN
EXCHANGE
FOB Value Of 1,116.99 1,069.00 895.49 806.96
Goods
Other Earnings 74.02 86.81 77.78 26.92
BONUS DETAILS
Bonus Equity -- -- -- --
Share Capital
NON-CURRENT
INVESTMENTS
Non-Current 0.04 0.28 -- --
Investments
Quoted Market
Value
Non-Current 2,409.48 2,232.29 1,639.10 1,004.04
Investments
Unquoted Book
Value
CURRENT
INVESTMENTS
Current -- -- 364.05 344.44
Investments
Quoted Market
Value
Current -- -- 975.00 50.00
Investments
Unquoted Book
Value

 Apollo tyres ratio analysis

KEY FINANCIAL MAR 20 MAR 19 MAR 18 MAR 17

RATIOS OF
APOLLO TYRES (in
Rs. Cr.)
PER SHARE
RATIOS
Basic EPS (Rs.) 8.89 10.35 11.55 15.77
Diluted EPS (Rs.) 8.89 10.35 11.55 15.77
Cash EPS (Rs.) 19.74 18.15 17.25 21.43
Book Value 134.47 133.58 126.92 104.73
[ExclRevalReserve]
/Share (Rs.)
Book Value 134.47 133.58 126.92 104.73
[InclRevalReserve]/
Share (Rs.)
Dividend / 3.00 3.25 3.00 3.00
Share(Rs.)
Revenue from 193.38 215.96 180.05 175.51
Operations/Share
(Rs.)
PBDIT/Share (Rs.) 24.96 27.80 23.94 28.73
PBIT/Share (Rs.) 14.11 20.00 17.57 23.07
PBT/Share (Rs.) 10.16 14.10 15.16 21.33
Net Profit/Share 8.89 10.35 10.88 15.77
(Rs.)
PROFITABILITY
RATIOS
PBDIT Margin (%) 12.90 12.87 13.29 16.37
PBIT Margin (%) 7.29 9.26 9.75 13.14
PBT Margin (%) 5.25 6.52 8.42 12.15
Net Profit Margin 4.59 4.79 6.04 8.98
(%)
Return on 6.61 7.74 8.57 15.05
Networth / Equity
(%)
Return on Capital 6.51 10.40 6.18 11.46
Employed (%)
Return on Assets 3.08 4.33 4.73 8.12
(%)
Total Debt/Equity 0.56 0.36 0.35 0.30
(X)
Asset Turnover 67.11 90.51 78.36 90.45
Ratio (%)
LIQUIDITY RATIOS
Current Ratio (X) 0.71 1.33 1.59 1.11
Quick Ratio (X) 0.27 0.55 1.03 0.51
Inventory Turnover 6.12 6.02 5.98 5.17
Ratio (X)
Dividend Payout 70.29 28.98 24.53 12.68
Ratio (NP) (%)
Dividend Payout 31.65 16.52 15.47 9.33
Ratio (CP) (%)
Earnings Retention 29.71 71.02 75.47 87.32
Ratio (%)
Cash Earnings 68.35 83.48 84.53 90.67
Retention Ratio (%)
VALUATION
RATIOS
Enterprise Value 8,629.03 15,204.01 18,005.55 12,099.35
(Cr.)
EV/Net Operating 0.78 1.23 1.75 1.35
Revenue (X)
EV/EBITDA (X) 6.04 9.56 13.15 8.27
MarketCap/Net 0.41 1.03 1.53 1.19
Operating Revenue
(X)
Retention Ratios 29.70 71.01 75.46 87.31
(%)
Price/BV (X) 0.59 1.66 2.17 1.99
Price/Net 0.41 1.03 1.53 1.19
Operating Revenue
Earnings Yield 0.11 0.05 0.04 0.08

 MRF Ltd.
 COMPANY PROFILE

MRF (Madras Rubber Factory) is India's No. 1 tyre

manufacturing company. It was started in the year
1946 by K M Mammen Mappillai as a small toy
balloon unit. Much later in November 1960 it
 ventured into manufacturing of tyres.

In 1964 MRF established an overseas office at

Beirut, Lebanon to tap the export market. This was
amongst India’s very first efforts on tyre exports. In
1989 the company collaborated with US–based
Hasbro International, the world’s largest toy maker
and launched Funskool India. In the same year it
entered into a pact with Vapocure of Australia to
manufacture polyurethane paint formulations and
with Pirelli for Muscleflex conveyor and elevator
belting.

 MRF TYRES FINANCIAL

STATMENT
 BALANCE SHEET MAR 20 MAR 19 MAR 18 MAR 17
OF MRF (in Rs. Cr.)
  12 mths 12 mths 12 mths 12 mths
EQUITIES AND
LIABILITIES
SHAREHOLDER'S
FUNDS
Equity Share 4.24 4.24 4.24 4.24
Capital
TOTAL SHARE 4.24 4.24 4.24 4.24
CAPITAL
Reserves and 12,000.11 10,649.06 9,599.96 8,540.18
Surplus
TOTAL RESERVES 12,000.11 10,649.06 9,599.96 8,540.18
AND SURPLUS
TOTAL 12,004.35 10,653.30 9,604.20 8,544.42
SHAREHOLDERS
FUNDS
NON-CURRENT
LIABILITIES
Long Term 779.03 1,054.73 1,319.33 1,238.32
Borrowings
Deferred Tax 427.83 839.20 619.01 501.17
Liabilities [Net]
Other Long Term 578.12 76.29 58.08 27.74
Liabilities
Long Term 189.16 167.80 152.74 137.26
Provisions
TOTAL NON- 1,974.14 2,138.02 2,149.16 1,904.49
CURRENT
LIABILITIES
CURRENT
LIABILITIES
Short Term 241.99 408.86 228.37 573.34
Borrowings
Trade Payables 2,340.14 2,327.64 1,998.96 1,677.08
Other Current 2,440.41 2,550.63 2,178.28 2,104.91
Liabilities
Short Term 153.08 149.23 142.83 120.88
Provisions
TOTAL CURRENT 5,175.62 5,436.36 4,548.44 4,476.21
LIABILITIES
TOTAL CAPITAL 19,154.11 18,227.68 16,301.80 14,925.12
AND LIABILITIES
ASSETS
NON-CURRENT
ASSETS
Tangible Assets 8,820.72 6,751.32 6,057.84 5,474.35
Intangible Assets 28.46 16.20 17.47 13.23
Capital Work-In- 1,734.56 1,403.19 1,078.84 846.96
Progress
Other Assets 0.00 0.00 0.00 0.00
FIXED ASSETS 10,583.74 8,170.71 7,154.15 6,334.54
Non-Current 26.53 1,078.00 1,092.42 1,080.57
Investments
Deferred Tax 0.00 0.00 0.00 0.00
Assets [Net]
Long Term Loans 12.22 0.31 14.09 3.68
And Advances
Other Non-Current 573.81 658.16 356.29 318.85
Assets
TOTAL NON- 11,196.30 9,907.18 8,616.95 7,737.64
CURRENT ASSETS
CURRENT ASSETS
Current 1,513.65 2,770.39 3,054.02 2,313.78
Investments
Inventories 2,852.69 2,950.93 2,172.07 2,392.92
Trade Receivables 2,257.03 2,361.62 2,135.92 1,959.95
Cash And Cash 1,106.85 60.07 139.41 274.42
Equivalents
Short Term Loans 2.89 0.61 1.90 3.98
And Advances
OtherCurrentAsset 224.70 176.88 181.53 242.43
s
TOTAL CURRENT 7,957.81 8,320.50 7,684.85 7,187.48
ASSETS
TOTAL ASSETS 19,154.11 18,227.68 16,301.80 14,925.12
OTHER
ADDITIONAL
INFORMATION
CONTINGENT
LIABILITIES,
COMMITMENTS
Contingent 0.00 969.94 410.57 394.55
Liabilities
CIF VALUE OF
IMPORTS
Raw Materials 3,016.15 3,472.74 2,838.54 2,710.64
Stores, Spares And 0.00 0.00 0.00 0.00
Loose Tools
Trade/Other Goods 0.00 0.00 0.00 0.00
Capital Goods 1,160.67 321.23 514.81 246.16
EXPENDITURE IN
FOREIGN
EXCHANGE
Expenditure In 119.87 111.96 86.09 84.87
Foreign Currency
REMITTANCES IN
FOREIGN
CURRENCIES FOR
DIVIDENDS
Dividend -- -- -- --
Remittance In
Foreign Currency
EARNINGS IN
FOREIGN
EXCHANGE
FOB Value Of 1,384.45 1,330.30 1,145.82 1,151.31
Goods
Other Earnings 15.51 14.37 13.89 15.84
BONUS DETAILS
Bonus Equity 1.78 1.78 1.78 1.78
Share Capital
NON-CURRENT
INVESTMENTS
Non-Current 4.81 6.00 -- --
Investments
Quoted Market
Value
Non-Current 21.72 1,072.00 1,092.42 1,080.57
Investments
Unquoted Book
Value
CURRENT
INVESTMENTS
Current -- -- -- --
Investments
Quoted Market
Value
Current 1,513.65 2,770.39 3,054.02 2,313.78
Investments
Unquoted Book
Value

 MRF TYRES RATIO ANALYSIS

KEY FINANCIAL RATIOS MAR 20 MAR 19 MAR 18 MAR 17

OF MRF (in Rs. Cr.)
PER SHARE RATIOS
Basic EPS (Rs.) 3,289.16 2,586.26 2,575.43 3,421.43
Diluted EPS (Rs.) 3,289.16 2,586.26 2,575.43 3,421.43
Cash EPS (Rs.) 5,602.83 4,488.54 4,239.67 4,859.03
Book Value 28,312.1 25,125.71 22,651.42 20,151.93
[ExclRevalReserve]/Shar 5
e (Rs.)
Book Value 28,312.1 25,125.71 22,651.42 20,151.93
[InclRevalReserve]/Share 5
(Rs.)
Dividend / Share(Rs.) 100.00 60.00 60.00 60.00
Revenue from 37,714.9 37,351.42 34,957.36 31,240.12
Operations/Share (Rs.) 5
PBDIT/Share (Rs.) 6,259.91 6,280.54 6,019.86 6,889.25
PBIT/Share (Rs.) 3,947.12 4,378.96 4,356.32 5,452.57
PBT/Share (Rs.) 3,300.28 3,794.55 3,778.09 4,873.51
Net Profit/Share (Rs.) 3,290.05 2,586.96 2,576.13 3,422.36
PROFITABILITY RATIOS
PBDIT Margin (%) 16.59 16.81 17.22 22.05
PBIT Margin (%) 10.46 11.72 12.46 17.45
PBT Margin (%) 8.75 10.15 10.80 15.60
Net Profit Margin (%) 8.72 6.92 7.36 10.95
Return on Networth / 11.62 10.29 11.37 16.98
Equity (%)
Return on Capital 11.97 14.51 9.29 13.88
Employed (%)
Return on Assets (%) 7.28 6.01 6.70 9.72
Total Debt/Equity (X) 0.09 0.14 0.16 0.21
Asset Turnover Ratio (%) 83.48 86.88 90.92 88.74
LIQUIDITY RATIOS
Current Ratio (X) 1.54 1.53 1.69 1.61
Quick Ratio (X) 0.99 0.99 1.21 1.07
Inventory Turnover Ratio 5.61 5.37 6.82 5.54
(X)
Dividend Payout Ratio 1.82 2.32 2.32 2.92
(NP) (%)
Dividend Payout Ratio 1.07 1.33 1.41 2.05
(CP) (%)
Earnings Retention Ratio 98.18 97.68 97.68 97.08
(%)
Cash Earnings Retention 98.93 98.67 98.59 97.95
Ratio (%)
VALUATION RATIOS
Enterprise Value (Cr.) 24,608.6 26,019.39 32,063.79 27,284.15
3
EV/Net Operating 1.54 1.64 2.16 2.06
Revenue (X)
EV/EBITDA (X) 9.27 9.77 12.56 9.34
MarketCap/Net Operating 1.54 1.55 2.07 1.94
Revenue (X)
Retention Ratios (%) 98.17 97.67 97.67 97.07
Price/BV (X) 2.06 2.31 3.19 3.01
Price/Net Operating 1.54 1.55 2.07 1.94
Revenue
Earnings Yield 0.06 0.04 0.04 0.06

 RATIO FORMULA

 Liquidity Ratios
Current Ratio = Current Assets/Current Liabilities

Quick Ratio = Liquid Assets/Current Liabilities

1.Absolute Liquid Ratio = Absolute Liquid
Assets/Current Liabilities

 Profitability Ratios
2.Gross Profit Ratio = Gross ProPrice Earnings
Ratiofit/Net Sales X 100

3.Operating Cost Ratio = Operating Cost/Net

Sales X 100
4.Operating Profit Ratio = Operating Profit/Net
Sales X 100

5.Net Profit Ratio = Net Profit/Net Sales X 100

6.Return on Investment Ratio = Net Profit After

Interest  And Taxes/ Shareholders Funds or
Investments  X 100

7.Return on Capital Employed Ratio = Net Profit

after Taxes/ Gross Capital Employed X 100

8.Earnings Per Share Ratio = Net Profit After Tax

& Preference Dividend /No of Equity Shares

9.Dividend Pay Out Ratio = Dividend Per Equity

Share/Earning Per Equity Share X 100

10. Earning Per Equity Share = Net Profit after

Tax & Preference Dividend / No. of Equity
Share

11. Price Earnings Ratio = Market Price Per

Share Equity Share/ Earning Per Share X 100

12. Net Profit to Net Worth Ratio = Net Profit

after Taxes / Shareholders Net Worth X 100
  Working Capital
Ratios
13. Inventory Ratio = Net Sales / Inventory

14. Debtors Turnover Ratio = Debtors Turnover

15. Debt Collection Ratio = Receivables  x
Months or days in a year / Net Credit Sales for
the year

16. Creditors Turnover Ratio = Net Credit

Purchases / Average Accounts Payable

17. Creditors Turnover Ratio = Net Credit

Purchases / Average Accounts Payable

18. Average Payment Period = Average Trade

Creditors / Net Credit Purchases X 100
19. Working Capital Turnover Ratio = Net
Sales / Working Capital

20. Fixed Assets Turnover Ratio = Cost of

goods Sold / Total Fixed Assets

21. Capital Turnover Ratio = Cost of Sales /

Capital Employed

 Capital Structure
Ratios
22. Debt Equity Ratio = Debt Equity Ratio

23 Proprietary Ratio = Shareholders Fund/

Total
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