A

Project Report
On
Financial Analysis
Of
Presented to
Prof. Nikunj Patel
Faculty Member
S.V. Institute of Management.Kadi
ort! "ujarat #ni$ersity Patan
On
%ecember &'
rd
( &))*
In t!e partial fulfillment of t!e re+uirements for
Managerial Accounting,I -ourse in t!e Master of .usiness Administration
Programme
.y/
As!0in -!aud!ary 1Roll o.2&3
Priyan4a Ma!eta 1Roll o.253
M.A,2 1A3

Preface
As a part of our syllabus of M.A programme in Semester,I( 0e are assigned some
practical and t!eoretical project 0or4. In partial fulfillment of t!e Managerial
Accounting,I( course 0e !a$e prepared a compre!ensi$e project report in Financial
Analysis of t!e company.
Study of management 0ill be immaterial if it is not coupled 0it! study of financial aspect
of t!e business. It gi$es t!e student an opportunity to learn t!e connection bet0een
comparison 6 e7ecution to test 6 $erify application of t!eories 6 !elp in t!e comparison
of management t!eories and practice. 8!e study gi$es a c!ance to 4no0 about t!e
profitability and financial position of t!e firm.
9e !a$e c!osen 9ipro :imited 0!ic! is a ;'.< .illion "lobal company in Information
8ec!nology Ser$ices (R6% Ser$ices( .usiness Process Outsourcing.
8!is report contains t!e analysis of t!e < years data of t!e company. 8!e Financial
statements of t!e report are analy=ed in t!ree different 0ays suc! as
8rend Analysis
>ori=ontal Analysis
Ratio Analysis
-as!flo0 Analysis
8!e ratio analysis of t!e company !as been deri$ed for &' ratios 0!ic! !elp to determine
t!e company?s performance. In t!e Scenario Analysis of t!e company 0e !a$e included
t!e company?s industrial "%P( its Mar4et S!are( Mar4et -apitali=ation( Mar4et "ro0t!
etc.
Date: 20
th
December ,2008 Ashwin Chaudhar !"oll No.#$
Place: %adi Prianka &ehata !"oll No.$
Acknowledgement
9it! a sense of gratitude and respect( 0e 0ould li4e to e7tend our !eartiest t!an4s
to all of t!ose 0!o pro$ided !elp and guidance to ma4e t!is project a big success. o
Project is e$er t!e outcome of single indi$idual?s talent or effort. 8!is 0or4 is no
e7ception. 8!is project 0ould not !a$e been possible 0it!out t!e 0!ole !earted
encouragement( support and co,operation of our guide( friends and 0ell,0is!ers.
Alt!oug! it is not possible for us to name and t!an4 t!em all indi$idually( 0e must ma4e
special mention of some of t!e personalities and ac4no0ledge our sincere indebtness to
t!em.
8!e successful completion of t!is project rests on t!e s!oulder of many persons 0!o !a$e
!elped us directly or indirectly. 9e 0is! to ta4e t!is opportunity to e7press to all
t!ose( 0it!out 0!ose !elp( completion of t!is project 0ould !a$e been difficult. 9e
are indebted and t!an4ful to all t!e indi$iduals 0!o !a$e guided( ad$ised( inspired
and supported us in ma4ing t!is project a success.
Our gratitude to our !onorable guide Prof. Nikunj Patel for gi$ing us t!e
opportunity for de$eloping t!e project and !is able guidance( inestimable moti$ation and
constant encouragement t!roug!out our project. 9it!out !is !elp t!is project 0ould ne$er
!a$e been reali=ed in its entirety.
9e are especially t!an4ful to our >ead Of %epartment Prof. 'ha(in Panda for
!is $aluable support in pro$iding us t!e facilities and !is $aluable guidance for t!e
de$elopment of t!is project.
Date: 20
th
December ,2008 Ashwin Chaudhar !"oll No.#$
Place: %adi Prianka &ehata !"oll No.$
Executive Summary
It is Summari=e tin of all report in one or t0o pages so as to pro$ide an o$er$ie0 of t!e
company. it is also called synopsis or Abstract. As a partials fulfillment of t!e
re+uirement for t!e Managerial Accounting -ource.9e !a$e completed a project report
on financial Analysis of 9ipro :td.
Sales Figure is increasing at a !andsome rate. it is at Rs. <*@)).&' Million. in
&))',)@ and it is increased to Rs. 2@2'A<.* Million. So Sales is increased 5<.)<B
because of aggressi$e Selling Policy.
Profit after 8a7 is also increasing as compare to &))',)@ it is increasing &&<2@
Million at Rs '@)*( *5@5( @'**.C( <A5).@( respecti$aly last four year. 8!is is
because company !as increased it sales and doing good cost management
et 0ort! of t!e company is increased in t!is year because of increase in Reser$e
6 Surplus
-urrent Ratio of 9ipro limited is s!o0ing good position. It is 2.&C 8imes in &))',
)@ t!en it is increased to &.2' 8imes in &))5,)* t!is s!o0s -ompany !as
ac!ie$ed standard Ratio.
8!e returns on t!e in$estment is some 0!at decline in current year.
8!e DPS of S!are is increased Rs. 5.@' to Rs &).C& in &))5,)* So S!are !older
are benefited.
-ompany?s 8otal Assets are increased and it trying to e7pand its business on t!e
ot!er !and debt are also increased it s!o0s t!at company trying to 8rading on
D+uity.
After analy=ing all aspect -ompany?s performance is good.
C)N*+N*
Preface
Acknowled,ement
+-ecuti(e .ummar
1. INTRODUCTION
2.2 Introduction to company
2.& "roup of companies
2.' >istory
2.@ -ompany Profile
2.< Registered office address
2.C .oard of director
2.5 Auditor

2. ANALYSIS OF BALANCE SHEET
&./ *rend analsis of 'alance sheet
&.2.2 8rend analysis of fi7ed assets
&.2.& 8rend analysis of total current assets
&.2.' 8rend analysis of s!are !olders e+uity
&.2.@ 8rend analysis of total current assets
&.2.< S!are !older?s fund
&.2.C Sources of fund
&.2.5 In$estment
&.2.* Application of funds
2.2 0ori1ontal analsis of 'alance sheet
&.&.2 Sources of fund &))*
&.&.& Application of fund &))*
&.&.' Sources of fund for fi$e years
&.&.@ Application of fund for fi$e years
3. ANALYSIS OF P & L ACCOUNT
'.2 *rend analsis of P 2 3
'.2.2 8rend analysis of total income
'.2.& Profit after ta7
'.2.' 8ransfer to general reser$e
'.2.@ et sales and ser$ices
4.2 0ori1ontal analsis of P 2 3
'.&.2 -omparison of P.8 and Income 0it! e7penditure
4. CASH FLOW ANALYSIS
@.2 Introduction
@.& -as! flo0 statement
@.' Interpretation of -as! flo0 statement
5. RATIO ANALYSIS
#./ 5ntroduction of the ratio analsis
#.2 3i6uidit ratio
<.&.2 -urrent ratio
<.&.& Euic4 ratio
<.&.' et 0or4ing capital
#.4 Profitabilit ratio
<.'.2 "ross profit
<.'.& Operating ratio
<.'.' et profit ratio
<.'.@ Return on in$estment
<.'.< Return on e+uity
#.7 Assets turno(er ratio
<.@.2 total asset turn o$er ratio
<.@.& net fi7ed asset turn o$er
<.@.' in$entory turn o$er ratio
<.@.@ a$erage age of in$entories
<.@.< debtor turn o$er ratio
#.# 8inance structure ratio
<.<.2 debt ratio
<.<.& debt e+uity
<.<.' interest co$erage ratio
#.9 :aluation ratio
<.C.2 earning per s!are
<.C.& di$ident pay out ratio
<.C.' PFD ratio
<.C.@ Profit margin ratio
#.; Du<Pont chart
6. SCENARIO ANALYSIS
9./ business unit =erformance
9.2 com=an analsis
C.&.2 S!are !olding pattern
C.&.& Mar4et capitali=ation
7 ANNEXURES
8 BIBLIOGRAPHY

Chapter 1.
Introduction
5ntroduction to com=an
>rou= Com=anies
0istor
Com=an Profile
"e,istered )ffice Address
'oard of Directors
Auditors
/. 5N*")D?C*5)N
2.2. 5ntroduction of com=an
9ipro :imited 19ipro3( toget!er 0it! its subsidiaries and associates 1collecti$ely( t!e
company or t!e group3 is a leading India based pro$ider of I8 Ser$ices and Products(
including .usiness Process Outsourcing 1.PO3 Ser$ices( globally. Furt!er(9ipro !as
ot!er business suc! as India and AsiaPac I8 Ser$ices and products and -onsumer
-are and :ig!ting. 9ipro is !ead+uartered in .angalore( India.9ipro 8ec!nologies is
a global ser$ices pro$ider deli$ering tec!nology,dri$en business solutions t!at meet
t!e strategic objecti$es clients. 9ipro !as @)G H-enters of D7cellence? t!at create
solutions around specific needs of industries. 9ipro deli$ers unmatc!ed business
$alue to customers t!roug! a combination of process e7cellence( +uality frame0or4s
and ser$ice deli$ery inno$ation. 9ipro is t!e 9orldIs first -MMi :e$el < certified
soft0are ser$ices company and t!e first outside #SA to recei$e t!e IDDD Soft0are
Process A0ard.
9ipro is a ;'.< billion "lobal company in Information 8ec!nology Ser$ices( R6%
Ser$ices( .usiness process outsourcing. 8eam 0ipro is 5<())) Strong from @)
nationalities and gro0ing. 9ipro is present across &A counries('C %e$elopment
canters( In$estors across &@ countries.
:argest t!ird party R6% Ser$ice pro$ider in t!e 0orld.
:argest Indian 8ec!nology Infrastructure management ser$ice pro$ider.
A $endor of c!oice in t!e middle east
Among t!e top ' Indian .PO Ser$ice pro$ider by Re$enue 1J asscom3
Among t!e top & %omestic I8 Ser$ices companies in India 1JI%- India3
/.2. >rou= Com=anies
9ipro Infrastructure Dngineering :td.
9ipro Inc.
cMango Pte :td.
9ipro Kapan KK
9ipro S!ang!ai :td.
9ipro 8rademar4s >olding :td.
9ipro 8ra$el Ser$ices :td.
9ipro -yprus Pri$ate :td.
9ipro -onsumer -are :td.
9ipro >ealt! -are :td.
9ipro -!andri4a :td.1a3
9ipro >oldings 1Mauritius3 :td.
9ipro Australia pty :td.
9MD8SDRV :td.1a3
Euantec! "lobal Ser$ice :td.
'% et0or4 Pte :td.
Planet PS" Pte :td.
Spectramind Inc.
/.4. 0istor
9ipro started in 2A@< 0it! t!e setting up of an oil factory in Amalner a small to0n in
Ma!aras!tra in Kalgaon %istrict. 8!e product Sunflo0er Vanaspati and 5*5 laundry
soap 1largely made from a bi,product of Vanaspati operations3 0as sold primarily in
Ma!aras!tra and MP. 8!e company 0as aptly named 9estern India Products :imited.
*he 'irth of the name @i=ro , As t!e organi=ation gre0 and di$ersified into
operations of >ydraulic -ylinders and Infotec!( t!e name of t!e organi=ation did not
ade+uately reflect its operations. A=im Premji !imself in 2A5A selected t!e name
L9iproL largely an acronym of 9estern India Products. 8!us 0as born t!e .rand
9ipro. 8!e name 9ipro 0as uni+ue and ga$e t!e feel of an IInternationalL company.
So muc! so t!at some dealers e$en sent t!eir c!e+ues fa$ouring 9ipro 1India3
:imited. Fortunately( t!e ban4s accepted t!emMM.y t!e early A)s( 9ipro !ad gro0n
into $arious products and ser$ices. 8!e 9ipro product bas4et !ad soaps called 9ipro
S!i4a4ai( .aby products under 9ipro .aby Soft( >ydraulic -ylinders branded 9ipro(
P-s under t!e brand name 9ipro( a joint $enture company 0it! "D named 9ipro "D
and soft0are ser$ices branded 9ipro. 8!e 9ipro logo 0as a I9L( but it 0as not
consistently used in t!e products.It 0as clearly felt t!at t!e organi=ation 0as not
le$eraging its brand name across t!e $arious businesses. 8!e main issue remained
0!et!er a di$erse organi=ation suc! as 9ipro could be branded under a uniform loo4
and feel and could t!ere be consistent communication about 9ipro as an organi=ation.
/.7.Com=an Profile
'usiness<Descri=tion
9ipro :imited is t!e first P-MM :e$el < and SDI -MM :e$el < certified I8
Ser$ices -ompany globally. 9ipro pro$ides compre!ensi$e I8 solutions and ser$ices(
including systems integration( Information Systems outsourcing( pac4age
implementation( soft0are application de$elopment and maintenance( and researc!
and de$elopment ser$ices to corporations globally.
8!e "roupIs principal acti$ity is to offer information tec!nology ser$ices. 8!e
ser$ices include integrated business( tec!nology and process solutions including
systems integration( pac4age implementation( soft0are application de$elopment and
maintenance and transaction processing. 8!ese ser$ices also comprise of information
tec!nology consulting( personal computing and enterprise products( information
tec!nology infrastructure management and systems integration ser$ices. 8!e "roup
also offers products related to personal care( baby care and 0ellness products. 8!e
operations of t!e "roup are conducted in India( t!e #nited States of America and
Ot!er countries. %uring fiscal &))5( t!e "roup ac+uired 9ipro -yprus P$t :td(
Retailbo7 .$( Dnabler Informatica SA( Dnabler France SAS( Dnabler #4 :td( Dnabler
.ra=il :td( Dnabler and Retail -onsult "mb>( -mango Inc( -mango 1India3 P$t :td(
Sara0are Oy( Euantec! "lobal Ser$ices and >ydroauto "roup A.
>lobal 5* .er(ices and Products
8!e -ompanyIs "lobal I8 Ser$ices and Products segment pro$ides I8 ser$ices to
customers in t!e Americas( Durope and Kapan. 8!e range of its ser$ices includes I8
consulting( custom application design( de$elopment( re,engineering and maintenance(
systems integration( pac4age implementation( tec!nology infrastructure outsourcing(
.PO ser$ices and researc! and de$elopment ser$ices in t!e areas of !ard0are and
soft0are design. Its ser$ice offerings in .PO ser$ices include customer interaction
ser$ices( finance and accounting ser$ices and process impro$ement ser$ices for
repetiti$e processes.

8!e "lobal I8 Ser$ices and Products segment accounted for 5@B of t!e -ompanyIs
re$enues and *AB of its operating income for t!e year ended Marc! '2( &))5 1fiscal
&))53. Of t!ese percentages( t!e I8 Ser$ices and Products segment accounted for
C*B of its re$enue( and t!e .PO Ser$ices segment accounted for CB of its re$enue
during fiscal &))5.
Customi1ed 5* solutions
9ipro pro$ides its clients customi=ed I8 solutions in t!e areas of enterprise I8
ser$ices( tec!nology infrastructure support ser$ices( and researc! and de$elopment
ser$ices. 8!e -ompany pro$ides a range of enterprise solutions primarily to Fortune
2))) and "lobal <)) companies. Its ser$ices e7tend from enterprise application
ser$ices to e,.usiness solutions. Its enterprise solutions !a$e ser$ed clients from a
range of industries( including energy and utilities( finance( telecom( and media and
entertainment. 8!e enterprise solutions di$ision accounted for C'B of its I8 Ser$ices
and Products re$enues for t!e fiscal &))5.
*echnolo, 5nfrastructure .er(ice
9ipro offers tec!nology infrastructure support ser$ices( suc! as !elp des4
management( systems management and migration( net0or4 management and
messaging ser$ices. 8!e -ompany pro$ides its I8 Ser$ices and Products clients 0it!
around,t!e,cloc4 support ser$ices. 8!e tec!nology infrastructure support ser$ices
di$ision accounted for 22B of 9iproIs I8 Ser$ices and Products re$enues in fiscal
&))5.
"esearch and De(elo=ment .er(ices
9iproIs researc! and de$elopment ser$ices are organi=ed into t!ree areas of focus/
telecommunications and inter,net0or4ing( embedded systems and Internet access
de$ices( and telecommunications and ser$ice pro$iders.8!e -ompany pro$ides
soft0are and !ard0are design( de$elopment and implementation ser$ices in areas(
suc! as fiber optics communication net0or4s( 0ireless net0or4s( data net0or4s(
$oice s0itc!ing net0or4s and net0or4ing protocols. 9iproIs soft0are solution for
embedded systems and Internet access de$ices is programmed into t!e !ard0are
integrated circuit 1I-3 or application,specific integrated circuit 1ASI-3 to eliminate
t!e need for running t!e soft0are t!roug! an e7ternal source. 8!e tec!nology is
particularly important to portable computers( !and,!eld de$ices( consumer
electronics( computer perip!erals( automoti$e electronics and mobile p!ones( as 0ell
as ot!er mac!ines( suc! as process,controlled e+uipment. 8!e -ompany pro$ides
soft0are application integration( net0or4 integration and maintenance ser$ices to
telecommunications ser$ice pro$iders( Internet ser$ice pro$iders( application ser$ice
pro$iders and Internet data centers.
'usiness Process )utsourcin, .er(ice
9ipro .POIs ser$ice offerings include customer interaction ser$ices( suc! as I8,
enabled customer ser$ices( mar4eting ser$ices( tec!nical support ser$ices and I8
!elpdes4sN finance and accounting ser$ices( suc! as accounts payable and accounts
recei$able processing( and process impro$ement ser$ices for repetiti$e processes(
suc! as claims processing( mortgage processing and document management. For .PO
projects( t!e -ompany !as a defined frame0or4 to manage t!e complete .PO process
migration and transition. 8!e -ompany competes 0it! Accenture( D%S( I.M "lobal
Ser$ices( -ogni=ant( Infosys( Satyam and 8ata -onsultancy Ser$ices.India and
AsiaPac I8 Ser$ices and Products
8!e -ompanyIs India and AsiaPac I8 Ser$ices and Products business segment( 0!ic!
is referred to as 9ipro Infotec!( is focused on t!e Indian( Asia,Pacific and Middle,
Dast mar4ets( and pro$ides enterprise clients 0it! I8 solutions. 8!e India and AsiaPac
I8 Ser$ices and Products segment accounted for 2CB of 9iproIs re$enue in fiscal
&))5. 8!e -ompanyIs suite of ser$ices and products consists of tec!nology productsN
tec!nology integration( I8 management and infrastructure outsourcing ser$icesN
custom application de$elopment( application integration( pac4age implementation
and maintenance( and consulting

@i=roAs sstem inte,ration ser(ices
Include integration of computing platforms( net0or4s( storage( data center and
enterprise management soft0are. 8!ese ser$ices are typically bundled 0it! sales of
t!e -ompanyIs tec!nology products. 9iproIs infrastructure management and total
outsourcing ser$ices include management and operations of customerIs I8
infrastructure on a day,to,day basis. 8!e -ompanyIs tec!nology support ser$ices
include upgrades( system migrations( messaging( net0or4 audits and ne0 system
implementation. 9ipro designs( de$elops and implements enterprise applications for
corporate customers. 8!e -ompanyIs solutions include custom application
de$elopment( pac4age implementation( sustenance of enterprise applications(
including industry,specific applications( and enterprise application integration. 9ipro
also pro$ides consulting ser$ices in t!e areas of business continuity and ris4
management( tec!nology( process and strategy.
Consumer Care and 3i,htin,
9iproIs -onsumer -are and :ig!ting business segment accounted for <B of its
re$enue in fiscal &))5. 8!e -ompanyIs product lines include !ydrogenated coo4ing
oil( soaps and toiletries( 0ellness products( lig!t bulbs and fluorescent tubes( and
lig!ting accessories. Its product lines include soaps and toiletries( as 0ell as baby
products( using et!nic ingredients. .rands include Santoor( -!andri4a and 9ipro
Acti$e. 8!e 9ipro .aby Soft line of infant and c!ild care products includes soap(
talcum po0der( oil( diapers and feeding bottles and 9ipro Sanjee$ani line of 0ellness
products.
8!e -ompanyIs product line includes incandescent lig!t bulbs( compact fluorescent
lamps and luminaries. It operates bot! in commercial and retail mar4ets. 8!e
-ompany !as also de$eloped commercial lig!ting solutions for p!armaceutical
production centers( retail stores( soft0are de$elopment centers and ot!er industries.
Its product line consists of !ydrogenated coo4ing oils( a coo4ing medium used in
!omes( and bul4 consumption points li4e ba4eries and restaurants. It sells t!is product
under t!e brand name 9ipro Sunflo0er.
/.#. "e,istered )ffice Address
9IPRO :IMI8D%
%odda4annelli( Sarjapur Road(
.angalore O <C) )'<( India.
*el : GA2,*),&*@@))22
8a- : GA2,*),&*@@)<@
/.9. 'oard of Directors
A1im 0 . Premji -!airman
Dr Ashok . >an,ul Former -!ief D7.Officer ortel
' .C. Prabhakar Practitioner of :a0
Dr. Ba,dish N. .heth Professor Of Mar4eting,Dmory #ni.#sa.
N.:a,ual -!airman,I-I-I .an4 :td
'ill )wens
Former -!ief D7.Officer(ortel
P. &. .inba
Former -!airman Pepsico India >oldings
A=im Premji
-!airmen 6 Managing %irector
/.;. Auditors
KPM"
.SR 6 -o.
Audit committee
Vag!ul , -!airman
P M Sin!a , Member
. - Prab!a4ar , Member
'oard >o(ernance and Com=ensation Committee
As!o4 S "anguly , -!airman
Vag!ul , Member
P M Sin!a , Member
.hareholdersC >rie(ance and Administrati(e Committee
. - Prab!a4ar , -!airman
A=im > Premji , Member
Chapter 2.
Analysis of Balance
Sheet
*rend Analsis of 'alance .heet
0ori1ontal Analsis of 'alance .heet

2. ANA3D.5. )8 'A3ANC+ .0++*
2./.*rend Analsis of 'alance .heet
8rend Analysis of .alance S!eet in$ol$es calculation of percentage c!anges in t!e
.alance S!eet items for a no. of successi$e years. 8!is is carried out by ta4ing t!e
items of t!e past financial year used as base year and items of ot!er years are
e7pressed as percentage of t!e base year. >ere &))',)@ is ta4en as base year
Perticular
2004<
07
2007<
0#
200#<
09
2009<
0; 200;<08
.)?"C+. )8 8?ND.
S!are >olderIs Funds
S!are -apital 2)) ')&.&5 &)&.C* &)5.'5 2)).252
S!are application money pending
allotment 2)) C&&.@2 &A).@<C 22@.&*C
Reser$es 6 Surplus 2)) 2'*.C& 2&&.A@ 2*).AA 2&&.<2C
.hare holderAs +6uit /00 /70.98 /2#./8 /8/.;/8 /2/.844
:oan Funds 2))
Secured 2)) &&.5*C &)*.A C*A.5 2'A.2<@
#nsecured 2)) '*&.<@ 5<.5AC <55.&@2 2*&A.C*
*otal 3oan 8unds /00 #8.E7; /22.08 9/9.474 //;/.E7
Minority Interest 2)) 2C2.A@ , 2).A&A @))
*otal .ources of 8unds /00 /48.## /27.#4 /7E.284 /92./92
APP35CA*5)N )8 8?ND.
8i-ed assets
"ood0ill 2)) 2)5.*& C&.&A5 &C*.C&& @@<.'*@
"ross .loc4 2)) 2''.A2 22*.5@ 2@&.2A< 2<A.@A&
:ess/
Accumulated %epreciation 2)) 2').A< 2&A.5@ 2@5.2)5 2@5.55<
et .loc4 2)) 2'C.5& 2)*.5< 2<'.CC5 2<@.&&
-apital 0or4 in progress and ad$ances 2)) 2*&.@' &@).)' 2C'.)<C 2'2.2A@
*otal 8i-ed Assets /00 /40.84 //2.87 /;#.0;; 220.;29
5n(estments 2)) 2&'.'' /4/.0E 2)5.A)A @*.2*5A
Deferred *a- Assets!Net$ 2)) 2)2.5A /20 AA.'&CC *A.CC2
-urrent Assets( :oans 6 Ad$ances
In$entories 2)) 2'<.&' 22*.2A &)).ACA 2C).<5*
Sundry %ebtors 2)) 2').5* 2'5.)* 2'*.2C* 2'5.C'5
-as! 6 .an4 .alances 2)) 25C.& 2<<.)' &&'.55< 2A*.22'
:oan 6 Ad$ances 2)) A5.*5& &').@& 2&5.*@@ 2*).CA&
8otal -urrent Assets 2)) 2&A.&@ 2<5.52 2<@.A<< 2CC.')@
:ess/
-urrent :iabilities 6 Pro$isions
-urrent :iabilities 2)) 2@'.&C 2@<.@ 2*2.52A 22*.@*@
Pro$isions 2)) C2.&<5 &'A.' C'.'22* 2*).*5A
8otal :iabilities 2)) 2)&.*& 25&.AA 2''.<A 2').<)@
Net Current Assets /00 24/.#2 /4/.77 204.2E 2/E.#29
8otal Application of Funds 2)) /48.## /27.#4 /7E.284 /92./92
8able &.2.2 8rend Analysis of .alance S!eet
2././ *rend Analsis of 8i-ed assets
Year 2004<07 2007<0# 200#<09 2009<0; 200;<08
*otal 8i-ed Assets /00 /40.82; //2.877 /;#.0;; 220.;29
8able &.2.& 8rend Analysis of Fi7ed assets

Figure &.2.2 8rend Analysis of total fi7ed assets
5nter=retation
8!e fi7ed assets are increase in current year is good for t!e company.
>ear fi7ed assets are increasing as a increasing rate it means t!e company !as
e7pand it?s business.
Fi7ed Assets are continuously increasing year by year.
It seems t!at t!e company !as good future plans and t!ey 0ant to e7pand t!eir
business so t!ey !a$e in$ested more and more funds in fi7ed assets.
Fi7ed assets are efficiently utili=ed by t!e company due to 0!ic! t!e profit of
t!e company is increasing e$ery year.
In &))C,)5and &))5,)* -ompany !as !uge increase its land( patents( trade
mar4s and rig!ts.
2./.2 *rend Analsis of total current assets
8able &.2.' 8rend Analysis of total current assets
Year 2004<07 2007<0# 200#<09 2009<0; 200;<08
*otal Current Assets /00 /2E.272 /#;.;08 /#7.E## /99.407
Figure &.2.& 8rend Analysis of total current assets
5nter=retation
8!e current assets is s!o0s t!e cas! li+uidity of t!e company.
>ear it is increase it year by year it means t!e company !as sufficient li+uidity for
generating t!e business.
2./.2 *rend Analsis of total current assets
8able &.2.@ 8rend Analysis of total :iabilities
Year 2004<07 2007<0# 200#<09 2009<0; 200;<08
*otal 3iabilities /00 /02.8/; /;2.EE/ /44.#E /40.#07

Figure &.2.' 8rend Analysis of total :iabilities
5nter=retation
8!e total liabilities is !ig!est in &))<,)C.
:iabilities is incressing rate it mean company !as to de$eloped business. And
purc!ase ra0 material on credit basis.
2./.4 *rend Analsis of share holderCs e6uit.
8able &.2.< 8rend Analysis of s!are !older?s e+uity.
Year 2004<07 2007<0# 200#<09 2009<0; 200;<08
.hare holderAs +6uit /00 /70.987 /2#./8/ /8/.;/8 /2/.844
Figure &. @ 8rend Analysis of s!are !older?s e+uity.
5nter=retation
S!are !older e+uity is increase !ig! in &))C,)5 because t!e company !as allocated
ne0 s!are.
S!are !older e+uity is s!o0ing !ig! fluctuation.
2./.7 *rend Analsis of total loan fund.
8able &.2.C 8rend Analysis of total loan fund.
Year 2004<07 2007<0# 200#<09 2009<0; 200;<08
*otal 3oan 8unds /00 #8.E7;2 /22.0;9 9/9.474 //;/.E7
Figure &.2.< 8rend Analysis of total loan funds
5nter=retation
8!e total trend line is slo0ly increase up to &))<,)C. And after t!at it is increase at
a !ig! rate.
From &))C,)5 on0ard t!e loan fund is increase because t!e company !as e7panse
its business.
8!e company !as been able to raise its secured loan 0it!out s!ortage of funds.
Increase in secured loan s!o0s t!at company !as $ery good prestige in
Financial mar4et.
-ompany increasing loan funds because company 0ant to increase its trading
on e+uity.
2./.# .hare 0olderCs 8unds
.hare 0olderAs 8unds

Dear 2004<07 2007<0# 200#<09 2009<0; 200;<08
share ca=ital 2)) ')&.&5' &)&.C* &)5.'5 2)).252
.hare a==lication mone
=endin, allotment 2)) C&&.@)C &A).@<C 22@.&*C
"eser(es and .ur=lus 2)) 2'*.C&< 2&&.A@@ 2*).AA 2&&.<2C
*otal /00 /70.987 /2#./8/ /8/.;/8 /2/.844
8able &.2.5 8rend Analysis of S!are >olderIs Funds
Figure &.2.C 8rend Analysis of S!are >olderIs Funds
5nter=retation
8!ere is increase in s!are capital more t!an t0o times in &))<,)C and &))C,)5 and
it increase t!ree time in &))@,)< compare to base year &))',)@.In &))5,)* t!ere is
not big increase in s!are capital compare to &))<,)C.
8!ere is !ig!est s!are capital in &))@,)<.
8!e company !as issued ne0 s!ares in t!e &))<,)C.
As a result no. of s!ares is increased and t!ese funds are implemented for future
plans of t!e company.
Reser$es 6 surplus s!o0s a remar4able increase in &))@,)<( &))<,)C and &))C,)5
and it slo0ly decrease in &))*. respecti$ely 0it! respect to t!e base year( t!is s!o0s
t!e company !as future $ision and it 0ould li4e to e7pand its business.
Increase in Reser$e 6 surplus s!o0s because of increase in profit e$ery year.
>as a !ole 0e can say t!at t!e company is target oriented and its stic4ing to its
policies as a result s!are !older?s funds is increasing year by year.

2./.9 .ource of 8unds
.ource )f 8unds
Pear &))',)@ &))@,)< &))<,)C &))C,)5 &))5,)*
S!are !olderIs D+uity 2)) 2@).C*@< 2&<.2*2 2*2.52* 2&2.*''
Minority Interest 2)) 2C2.A@@C , 2).A&A @))
8otal :oan Funds 2)) <*.A@525 2&&.)5C C2C.'@' 2252.A@
8otal Sources of Funds 2)) 2'*.<<'@ 2&@.<&5CA 2@A.&*' 2C&.2C&
8able &.2.* 8rend Analysis of Source Of Funds
Figure &.2.5 8rend Analysis of Sources of Funds
5nter=retation
8!e loan fund is increases si7 and t0el$e time in year &))5( &))* respecti$ely
compare to &))',)@.
8!e company !as obser$ed an increase in loan funds as compared to t!e base year
0!ic! indicates its gro0ing reputation in t!e financial mar4et.
>ence t!e o$erall sources of funds !a$e s!o0n big increase 0it! respect to t!e
base year
2./.; 5n(estment
5n(estment
Pear &))',)@ &))@,)< &))<,)C &))C,)5 &))5,)*
5n(estments 2)) 2&'.'&*' 2'2.)*5 2)5.A)A @*.2*5A
8able &.2.A 8rend Analysis of In$estment
Figure &.2.* 8rend Analysis of In$estment
5nter=retation
In$estment figure s!o0s !ealt!y progress of t!e company.
In$estment !as increased in &))<( &))C and after t!at it !as strated decrease in
&))5( &))* 0!ic! s!o0s not good gro0t! compared to base year.
As t!ey !a$e in$ested most of t!eir funds in Indian money mar4et mutual
funds.
S!o0s t!at t!e company !as not ta4e ris4 but t!e company !as in$ested
money for de$eloped it?s o0n business.
&.2.* A==lication )f 8unds

A==lication of funds
Dear 2004<07 2007<0# 200#<09 2009<0; 200;<08
8otal Fi7ed Assets 2)) 2').*&C5 22&.*@@ 25<.)55 &&).5&C
In$estments 2)) 2&'.'&*' 2'2.)*5 2)5.A)A @*.2*5A
%eferred 8a7 Assets1et3 2)) 2)2.5*A 2&) AA.'&CC *A.CC2
et -urrent Assets 2)) &'2.<2A5 2'2.@'5 &)'.&A &2A.<&C
8able &. 2) 8rend Analysis of Application Of Funds
Figure &.2.A 8rend Analysis of Application Of Funds
5nter=retation
"rap! s!o0s t!at in &))5,)* -ompany in$ested more fund in fi7ed Assets.
-ompany !as enoug! cas! in !and so t!at in any condition company can ta4e
Any Financial decision easily.

2.2 0ori1ontal Analsis of 'alance .heet
Financial Statement present information for t!e last fi$e year. >ori=ontal analysis of
.alance S!eet deals 0it! t!e amount c!anges and t!e percentage c!anges of t!e items
of t!e .alance S!eet.
Financial Statement present comparati$e information for t!e current year and t!e
pre$ious year. >ori=ontal analysis of .alance S!eet deals 0it! t!e amount c!anges
and t!e percentage c!anges of t!e items of t!e .alance S!eet.
YEAR 200;<08 2009<0; 200#<<09 2007<0# 2004<07
.)?"C+. )8 8?ND.
S!are -apital 2.'< &.)C &.A2 2.AC 0.83
S!are application money pending
allotment ).)& ).)& ).)* ).)& 0.00
Reser$es 6 Surplus <&.CA C<.5' C@.@& 52.C@ 65.85
Secured ).AC 2.)< ).@C ).') 1.68
#nsecured 2A.55 2.C< ).'2 ).<C 0.19
Minority Interest ).)< ).)& ).'5 0.29
-urrent :iabilities 2*.@@ &'.5* 2*.*A 25.5C 15.79
Pro$isions C.5& <.C5 2&.A' 5.'A 15.37
*)*A3 100 100.00 100.00 100.00 100.00
APP35CA*5)N )8 8?ND.
8otal Fi7ed Assets '*.5' &C.*& &&.2) &C.5* 26.08
In$estments 5.@2 &'.@A '2.@2 '&.5C 33.84
%eferred 8a7 Assets1et3 ).&@ ).@& ).C2 ).CA 0.86
-urrent Assets( :oans 6 Ad$ances ).)) ).)) ).)) ).)) 0.00
In$entories '.)* &.A' &.2) &.@' 2.29
Sundry %ebtors 2*.5) &).5C &2.C* &2.C' 21.07
-as! 6 .an4 .alances 2*.2< 2@.)) A.)' 5.AC 5.76
:oan 6 Ad$ances 2'.CA 22.<* 2'.)5 5.5< 10.09
*)*A3 100 100 100 100 100
8able &.&.2 >ori=ontal Analysis of .alance S!eet
2.2./ analsis of sources of funds 2008
S!are -apital 2.'<
S!are application money pending
allotment ).)&
Reser$es 6 Surplus <&.CA
Secured ).AC
#nsecured 2A.55
Minority Interest ).)<
-urrent :iabilities 2*.@@
Pro$isions C.5&
8able &.&.& >ori=ontal Analysis of
sources of funds
Figure/ &.&.2 >ori=ontal analysis Sources of funds
5nter=retation
"rap! s!o0s t!at in &))5,)* unseured loan is 2A.55B it means t!at company !as
more ta4en s!ort term borro0ings for e7pantion of business.
In t!is grap! re$enue is more t!en <)B compare to ot!er source so it is good for
company.
2.2.2 analsis of a==lication of funds 2008
8otal Fi7ed Assets '*.5'
In$estments 5.@2
%eferred 8a7 Assets1et3 ).&@
-urrent Assets( :oans 6
Ad$ances ).))
In$entories '.)*
Sundry %ebtors 2*.5)
-as! 6 .an4 .alances 2*.2<
:oan 6 Ad$ances 2'.CA
8able &.&.' Analysis of application of funds in &))*
Figure/ &.&.& analysis of application of funds
5nter=retation
"rap! s!o0s t!at in &))5,)* t!e current assets loan is increase
Sondory debtors is 2'.CA so company !as to reco$er it.
2.2.4 .ources of 8unds
.ources of 8unds
Dear 2004<07 2007<0# 200#<<09 2009<0; 200;<08
S!are !olderIs D+uity A5B A*B AAB ACB 5&B
8otal :oan Funds 'B 2B 2B @B &*B
8otal Sources of Funds 2))B 2))B 2))B 2))B 2))B
8able &.&.@ >ori=ontal Analysis of Sources of Funds
Figure &.&.' >ori=ontal Analyses of Sources of Funds
5nter=retation
-ompany !as raised S!are -apital during &))',)@ to &))C,)5 and after t!at it
0as reduced at &@B t!is step !as been ta4en in order to promote e7pansion of t!eir
business.
-ompany stri$e en!ancement of s!are !older?s $alue t!roug! sound business
decision( prudent financial management and !ig! standard of et!ics t!roug! t!e
organi=ations. Reser$es and surplus !as been retained for future e7pansion of t!e
business.
In t!e base year &))',)@ total loan funds is normally up to &))C and after t!at
it 0as increase up to &<B( so it means t!at company !as e7pand t!e business.

2.2.7 A==lication of funds
A==lication of 8unds
Dear
2004<
07
2007<
0#
200#<
09
2009<
0;
200;<
08
8otal Fi7ed Assets '*B 'CB '&B '*B <&B
In$estments @AB @@B @CB ''B 2)B
%eferred 8a7 Assets1et3 2B 2B 2B 2B )B
et -urrent Assets 2&B &)B &2B &*B '*B
8otal Application of Funds 2))B 2))B 2))B 2))B 2))B
8able &.&.< >ori=ontal Analysis of Application of Funds
Figure &.&.@ >ori=ontal Analysis of Application of Funds
5nter=retation
8!e total fi7ed assets are '*B in &))@ and after t!at it 0as decrease up to @B
in &))C and after t!at it 0as increase 2)B so it means t!e company !as boug!t t!e
assets for e7pansion of business.
8!e in$estment is decline slo0ly and gradually.
8!e net current assets are increase at increasing rate so t!at company !as a
good li+uidity.
8!e company?s future plans for e7pansion seem clear due to increased
in$estment in Fi7ed Assets .Dfficient use of t!ese Assets !as enabled t!e
company to obser$e an increased profit.
Chapter 3.
Analysis of Proft &
Loss Account
*rend Analsis of Profit 2 3oss Account
0ori1ontal Analsis of Profit 2 3oss Account
4. ANA3D.5. )8 P")85* 2 3).. ACC)?N*
4./.*rend Analsis of Profit 2 3oss Account
8rend Analysis of Profit 6 :oss Account in$ol$es calculation of percentage c!anges
in t!e P 6 : Account items for a no. of successi$e years. 8!is is carried out by ta4ing
t!e items of t!e past financial year used as base year and items of ot!er years are
e7pressed as percentage of t!e base year. >ere &))@,)< is ta4en as base year

2004<
07
2007<
0#
200#<
09
2009<
0;
2007-
08
5ncome
"ross Sales and Ser$ices 2)) 2'A.2C 2&A.5' 2@& 133.12
:ess/ D7cise %uty 2)) A<.&< 2)C.A@ 25@ 122.77
et Sales and Ser$ices 2)) 2'A.5@ 2&A.A' 2@2 133.21
Ot!er Income 2)) 52.5A 2C&.<* 2A' 140.87
*otal 5ncome 2)) 2'*.&@ 2').' 2@& 133.36
+-=enditure
-ost of Sales and Ser$ices 2)) 2'*.2@ 2'&.2* 2@' 136.91
Selling and mar4eting e7penses 2)) 2)@.'* 2&@.&2 2'C 148.91
"eneral and administrati$e e7penses 2)) 2.*2& C&.'5 '<@ 8669.4
Interest 2)) 2)A.2& 2'5.<* 2@A 21.48
*otal +-=enditure 2)) 2''.'* 2'2.5@ 2@' 139.13
P")85* '+8)"+ *AFA*5)N 2)) 2<5.@* 2&<.< 2'A 112.37
Pro$ision for ta7ation including F.8 2)) 2C'.C2 2&'.'' 22@ 117.63
P")85* '+8)"+ &5N)"5*D
5N*+"+.* G.0A"+ 5N +A"N5N>
)8 A..)C5A*+. 2)) 2<C.@A 2&<.*5 2@' 111.68
Minority interest 2)) ,2@*.A ,2.2' ,C)) -400
S!are in earning of Associates 2)) 5C@.A5 2C@.&C 2)& 112.88
P")85* 8)" *0+ P+"5)D 2)) 2<5.** 2&C.A< 2@& 111.58
Appropriations
Interim di$idend 2)) 40.33
Proposed di$idend 2)) '5'.C< &)@.A& &) 400.69
8a7 on di$idend 2)) <5.)< &)&.C* 2&5 117.43
*"AN.8+"*) >+N+"A3
"+.+":+ 2)) @<C.)& 2)2.** 2<< 116.03
EARNINGS PER SHARE-EPS
Equity shars !" #ar $a%u Rs.2&- a'h
.asic 1in Rs.3 2)) 5*.C* 2&<.C@ 2@) 109.70
%iluted 1in Rs.3 2)) 5*.22 2&@.*' 2@2 110.29
Nu()r !" Shars "!r 'a%'u%ati*+ EPS 2))
.asic 1in Rs.3 2)) &)).<< 2)2.)5 2)2 101.69
%iluted 1in Rs.3 2)) &)&.2A 2)2.C* 2)2 101.69
8able '.2.2 8rend Analysis of Profit 6 :oss Account
4././ *rend Analsis of *otal 5ncome and *otal +-=enditure
8able '.2.& 8rend Analysis of 8otal Income and 8otal D7penditure
8rend analysis of total income 6 e7penditure
2004<07 2007<0# 200#<09 2009<0; 2007-08
*otal 5ncome 2)) 2'*.&'* 2').')@ 2@& 133.36
*otal +-=enditure 2)) 2''.'*& 2'2.5'< 2@' 139.13
Figure '.2.2 8rend Analysis of 8otal Income and 8otal D7penditure
5nter=retation
8!oug! t!e sales !as been continuously increased from past ' years but t!e
proportionate e7penditure is also rising so o$erall not ma4ing any !uge effect on net
profit of t!is company.
In &))C,)5 Income from mutual fund di$idend increased by A'.<5 B and Interest
on debt instrument <C5 B increased in &))<,)C compare to pre$ious year.
Percentage D7penditures increasing year by year little more t!an Income
increased( so t!at Profit margin %ecrease year by year.
'.2.& Profit After *a-
Profit after ta7
Dear 2004<07 2007<0# 200#<09 2009<0; 2007-08
Profit after ta7 2)) 2<5.@*2 2&<.@A5 2'A 112.37
8able '.2.'8rend Analysis of Profit After 8a7
Figure '.2.& 8rend Analysis of Profit After 8a7
H
5nter=retation
PA8 !as been rising o$er t!e years 0!en 0e compare 0it! t!e e7penditure
0!ic! !as been incurred to earn t!is profit is also rising
PA8 !as been increased all t!e years because of increasing in sales.
4./.4 *rend Analsis of Profit trancfer to ,enral resr(e
Year 2004<07 2007<0# 200#<09 2009<0; 2007-08
*"AN.8+"*) >+N+"A3
"+.+":+ 2)) @<C.)&& 2)2.**' 2<< 116.03
8able '.2.@ 8rend Analysis of Profit trancfer to genral resr$e
Figure '.2.' 8rend Analysis of Profit trancfer to genral resr$e
5nter=retation
8!e grap! is s!o0ing t!at in year &))@,)< t!e company !as transferred big
portion of net profit to genral reser$e.
>ear t!e in &))< company !as rein$est profit for business e7pansion it is good
s!ine for t!e company.
4./.7 *rend Analsis of net sales and ser(ices
Year 2004<07 2007<0# 200#<09 2009<0; 2007-08
Net .ales and
.er(ices /00 /4E.;4# /2E.E4 /7/ 133.21
8able '.2.< 8rend Analysis of net sales and ser$ices
Figure '.2.@ 8rend Analysis of net sales and ser$ices
5nter=retation
et sales and ser$ices are incresing from &))@ to &))<.
From &))< on0ard t!e net sales incresing at a stret line so !ear company
s!ould tray to increse net sales.
4.2.0ori1ontal Analsis of Profit 2 3oss Account
Financial Statement present comparison or e$ery year 0!at portion t!e rest of
particular is !a$ing compare to t!e total income. >ear 0e assume t!at t!e total
income is 2)) t!en 0!at is t!e of particular compare to total income. >ori=ontal
analysis of Profit 6 :oss Account deals 0it! t!e amount c!anges and t!e percentage
c!anges of t!e items of t!e Profit 6 :oss Account in e$ery year indi$idually.
Dear 2004<07 2007<0# 200#<09 2009<0; 2007-08
Income
"ross Sales and Ser$ices 99.07, AA.5'B AA.&AB A*.A@B 98.77,
:ess/ D7cise %uty 1.27, ).**B ).5&B ).**B 0.81,
et Sales and Ser$ices 97.80% E8.89I E8.#;I E8.09I 97.95%
Ot!er Income 2.20, 2.2@B 2.@'B 2.A@B 2.05,
*otal 5ncome 100.00% /00.00I /00.00I /00.00I 100.00%
Expenditure
-ost of Sales and Ser$ices 65.56, C<.<2B *<.'&B CC.A5B 68.75,
Selling and mar4eting
e7penses 9.05, C.*'B C.<2B C.&@B 6.97,
"eneral and administrati$e
e7penses 5.19, ).)5B ).)'B ).)*B 5.27,
Interest 0.06, @.C@B @.*AB <.2@B 0.83,
*otal +-=enditure 79.85% ;;.0#I ;;.8EI ;8.74I 81.83%
P")85* '+8)"+ *AFA*5)N 20.15, &&.A<B &&.22B &2.<5B 18.17,
Pro$ision for ta7ation
including F.8 2.81, '.''B '.2<B &.<'B 2.23,
P")85* '+8)"+ &5N)"5*D
5N*+"+.* G.0A"+ 5N
+A"N5N> )8 A..)C5A*+. 17.33% /E.92I /8.E#I /E.07I 15.94%
Minority interest -0.10, ).22B ).))B ).))B -0.01,
S!are in earning of Associates 0.04, ).&2B ).&5B ).2AB 0.16,
P")85* 8)" *0+
P+"5)D 17.27% /E.;4I /E.22I /E.27I 16.10%
Appropriations
Interim di$idend 9.74, @.5'B 1.43,
Proposed di$idend 1.56, @.&2B C.C'B ).A<B 2.87,
8a7 on di$idend 1.45, ).C)B ).A'B ).*'B 0.73,
*"AN.8+"*) >+N+"A3
"+.+":+ 4.52% /7.E2I //.99I /2.;2I 11.07%
8able '.&.2 >ori=ontal Analysis of Profit 6 :oss Account
4.2./ Com=arition of P'* and +-=enduture with total income
Dear 2004<07 2007<0# 200#<09 2009<0; 2007-08
*otal 5ncome 100.00% /00.00I /00.00I /00.00I 100.00%
*otal +-=enditure 79.85% ;;.0#I ;;.8EI ;8.74I 81.83%
P")85* '+8)"+
*AFA*5)N 20.15, &&.A<B &&.22B &2.<5B 18.17,
8able '.&.& -omparition of P.8 and D7penduture 0it! total income
Figure '.2.2 -omparition of P.8 and D7penduture 0it! total income
5nter=retation
8!e total e7penditure is near by *)B of total income in e$ery year.
D$ery year P.8 is near by &)B of total income.
Chapter 4.
Analysis of Cash lo!
State"ent
5ntroduction
Cash 8low statement
5nter=retation of Cash 8low .tatement
7. ANA3D.5. )8 CA.083)@ .*A*+&+N*
7./.5ntroduction
-as! flo0 statement Q-FSR pro$ides information about t!e !istorical c!anges in
cas! by classifying cas! flo0s during t!e period from operating acti$ities( financial
acti$ities and in$esting acti$ities of a concern. It s!o0s t!e summary of cas! flo0
on account of t!ese acti$ities.
Operating acti$ities as t!e principal re$enue,production acti$ities of t!e enterprise
8!ese acti$ities determines t!e net profit or loss of a concern. Operating Acti$ities
refer to t!e operations of a business of purc!asing( sales etc. Sales generate cas!N
purc!ase and e7pense use up t!e cas!. et profit leads to net increase in cas!.et
increase in cas! from operating acti$ities is t!e main source of cas! inflo0.
In$esting acti$ities as t!e ac+uisition and disposal of long tern assets and
in$estments. Ac+uiring and selling of a subsidiary or ot!er concerns s!ould be
s!o0n as In$esting Acti$ity. In$esting Acti$ities of ac+uisition of fi7ed assets( long
term in$esting reduces t!e cas! and indicate cas! outflo0. In$esting acti$ities of
disposal of fi7ed assets etc increase t!e cas! inflo0.
Financial acti$ities as t!e acti$ities resulting in t!e c!anges in t!e si=e and
composition of t!e o0ner?s capital and borro0ing of t!e enterprise. O0ner?s capital
includes preference capital in case of a company. Financial Acti$ities suc! as issue
of s!ares( ta4ing a loan from .an4( sale of fi7ed assets etc. increase t!e amount of
cas! a$ailable and form t!e source of cas! inflo0. Financial acti$ities suc! as
repayment of preference capital or repayment of loan reduce t!e amount of cas! and
indicates cas! outflo0.
7.2 Cash 8low .tatement
Dear ended &arch 4/, !"a. 5n &illion$
8able @. 2 -as! Flo0 Statement
2008 200; 2009 200# 2007
A. Cash 8low from )=eratin, Acti(ities
Adjustments for /
%epreciation and amorti=ations <'<A '(A5*
'()AC &(@<C.&@
2A52.*<
Amorti=ations of stoc4 compensation
22CC 2()5* C** '@&.C&
#nreali=ed foreign e7c!ange et ,<A< @<5 C< A&.@< ,2'&.55
Interest on borro0ings 2CA) 2&< '< <C.2&
%i$idendFinterest O et ,&*)& ,&(22* ,2()CA 52<.2< ,5C&.@2
1Profit3F:oss on sale of in$estments ,552 ,<** ,&'* '<.<A
"ain on sale of fi7ed assets ,25@ ,2) ,* 2)A.* ,2)5
9or4ing -apital -!anges /
8rade and ot!er recei$able ,22**< ,5(C'' ,C(AA2 @(@''.CA ,'C5).@2
:oans and ad$ances ,<2<5 ,&AA ,2()'' '22.5@ ,'<A.*A
In$entories ,2<C< ,2(2&) ,'25 @<<.&' ,&*2.<
8rade and ot!er payables C2*& <(@@< C(2<) @(2*).@& &5@*.2'
et cas! generated from operations &*<2* '&(')' &@(2)& &)(@<C.)) ,<A@
%irect ta7es paid ,<@<A ,@(&<& ,@(<@' &('<@.5) ,2<C*.'C
Net cash ,enerated b o=eratin, acti(ities &')<A &*()<2 2A(<<A 2*(2)2.') ,&2C&.'C
'. Cash flows from in(estin, acti(ities:
Ac+uisition of property( fi7ed assets
Plant and e+uipment1Inc. ad$ances3 ,2@&&C ,2'())< ,5A&5 C(@C<.@' ,@2)).A5
Proceeds from sale of fi7ed assets @5A 2@A 22' 2C*.A* 2&2.*C
Purc!ase of in$estments
,
&'2C*@
,
2&'(<5A
,
<A()@5 5)(2@<.22 ,2)5)C.<
Proceeds on saleFfrom maturities on
In$estments &<))2' 2&&)@& <&()@' CC('*'.<@ @*.)C
Inter,corporate depo sit 2<) ,C<) , &*<.'
et payment for ac+uisition of .usiness ,'&5A) ,CC)* ,&(555 C25.AA ,@C<.&5
%i$idendFinterest income recei$ed &@A) &(22* A&' &<@.2< 555.*<
Net cash ,enerated bG!used in$ 5n(estin, ,&<<C* ,2A<'' ,2CC5& 2@@)'<.& ,2@)'A.5
C. Cash flows from financin, acti(ities:
Proceeds from e7ercise of Dmployee Stoc4
Option <@2 A(@<* @(5)@ &(<5C.<* &'*.C
S!are application money pending allotment @) '< C' 2&.)<
Interest paid on borro0ings ,2CA) ,2&< ,'< <C.2&
%i$idends paid 1including distribution ta7 ,2&C'& ,*(*5< ,'(AA* 5(<5<.5C ,&C&.'C
ProceedsF1repayment3 of long term ,5@A5) 2@& ,&C* , @C'.)&
ProceedsF1repayment3 of s!ort term 22)C@2 2*&< ,&)) @'&.@'
Proceeds from issuance of s!ares by Subsidery << '< &CC.2A 2@5.<'
Net cash ,enerated b financin, Acti(ities &2A*< &@A< &CC ,<&)A ,2&A<@.<
et increase in cas! and cas! e+ui$alents
%uring t!e period 2A@5C 22)2' '2<@ &@CA.A< ,A<*.55
-as! and cas! e+ui$alents at t!e .eginning of
t!e period 2A*&& **<* <52@ '&@&.5 @&2).)*
Dffect of translation of cas! balance ,&* ,@A ,2) ).A& ,*.C2
-as! and cas! e+ui$alents at t!e end of Period J 'A&5) 2A*&& **<* <52'.<5 '&@&.5
Jincludes Rs. 5(&5* Million in a restricted designated ban4 account for payment of
interim di$idend
7.2.5nter=retation of Cash 8low .tatement
O$erall -as! flo0 Statement s!o0s t!at cas! !as been generated t!roug! Operating
acti$ity is Rs &')<A ( &*)<2 ( 2A<<A( 2*2)2( ,&2C&.'C and in t!e years &))5,)*( &))C,
)5( &))<,)C( &))@,)< and &))',)@ respecti$ely. So major part of cas! inflo0ing is
Operating department. In$estment Acti$ity S!o0s -as! Outflo0 and borro0ing acti$ities
ta4es a little part in increasing cas!.

)=eratin, Acti(ities : Profit before ta7 is increased by Rs. &<)'*.25 Million
and et -as! generated by Operating acti$ity is increased by Rs. &<&&2.'C
Million because(
%epreciation and amorti=ations are increased by Rs. ''*5.2< Million in
bet0een four year.
8rade and ot!er recei$able are also increased by Rs. *&2@.<A Million in
bet0een four year.
5n(estin, Acti(ities : et -as! outflo0 from in$esting acti$ities is Rs. 22<&*
Million because(
-ompany !as increased its plan and e+uipment 0ort! Rs.2)C&< Million in
bet0een four year.
In$estment is also increase 0ort! Rs. &&)A55 Million in bet0een four year.
From t!is inference t!at t!ese in$estments !as been met out of t!e cas!
from Operations or borro0ings.
In$estments in Fi7ed Assets could be part of -ompany?s plan of e7pansion
or moderni=ation.
8inancial Acti(ities : From t!e section on cas! flo0 from Financial Acti$ities
company t!in4 to proceeds in bot! s!ort term and long term borro0ings 0it!
proceeds from e7ercise of employee stoc4 option.
Chapter #.
$atio Analysis
5ntroduction *o *he "atio Analsis
3i6uidit "atios
Profitabilit "atios
8inance .tructure "atios
:aluation "atios
*he Du<Pont Chart
#. "A*5) ANA3D.5.
#./.5ntroduction )f *he "atio Analsis
Ratio analysis in$ol$es establis!ing a comparati$e relations!ip bet0een t!e
components of financial statements. It presents t!e financial statements into $arious
functional areas( 0!ic! !ig!lig!t $arious aspects of t!e business li4e li+uidity(
profitability and assets turno$er( financial structure. It is a po0erful tool of financial
analysis( 0!ic! recogni=es a company?s strengt!s as 0ell as its potential trouble
spots.
It can be furt!er classified as in different categories of Ratio.
:i+uidity Ratios
Profitability Ratios
Asset 8urno$er Ratios
Finance Structure Ratios
Valuation Ratios
#.2.3i6uidit "atio
:i+uidity refers to t!e e7istence of t!e assets in t!e cas! or near cas! form. 8!is ratio
indicates t!e ability of t!e company to disc!arge t!e liabilities as and 0!en t!ey
mature. 8!e financial resources contributed by o0ners or supplemented by outside
debt primarily come in t!e cas! form as under in t!e balance s!eet form.
8!e follo0ing :i+uidity Ratios are calculated for t!e company.
-urrent Ratio
Euic4 Ratio
et 9or4ing -apital
#.2./. Current "atio
8!is ratio s!o0s t!e proportion of -urrent Assets to -urrent :iabilities. It is also
4no0n as S9or4ing -apital RatioT as it is a measure of 0or4ing capital a$ailable at a
particular time. It?s a measure of s!ort term financial strengt! of t!e business. 8!e
ideal current ratio is &/2 i.e. -urrent Assets s!ould be e+ual to -urrent :iabilities.
Current "atio J Current Assets
Current 3iabilities
Current Ratio
Dear 2004<07 2007<0# 200#<<09 2009<0; 200;<08
"atios 2.&C 2.<* 2.@@ 2.C5 &.2'
8able <. 2 -urrent Ratio Analysis
Figure <. 2 -urrent Ratio Analysis
5nter=retation
-urrent ratio is al0ays &/2 it means t!e current assets t0o time of current liability.
After obser$ing t!e figure t!e current ratio is fluctuating.
In t!e year &))* ratio is s!o0ing good s!ine.
>ear ratio is increase as a increasing rate from &))@ to &))*.
-ompany is no 0!ere near t!e ideal ratio in e$ery year but e$ery company can not
ac!ie$e t!is ratio.
-urrent ratio is increased in &))5,)* as compared to &))',)@ because of increase in
In$entories 2)).ACB and 2&'.55 B increased in -as! and .an4 balance.
-urrent ratio is decreased in &))<,)C as compared to t!e last year because of
increase in liabilities by @<.'AB and A'.2AB in increasing in Pro$ision.
#.2.2 Kuick "atio
8!is ratio is designed to s!o0 t!e amount of cas! a$ailable to meet immediate
payments. It is obtained by di$iding t!e +uic4 assets by +uic4 liabilities. Euic4 Assets
are obtained by deducting stoc4s from current assets. Euic4 liabilities are obtained by
deducting ban4 o$er draft from current liabilities.
Kuick "atio J Kuick Assets
Current 3iabilities
Quick Ratio
Pear 2004<07 2007<0# 200#<<09 2009<0; 200;<08
Ratios 1.2 1.5 1.4 1.6 2.0
8able <. & Euic4 Ratio Analysis
Figure <. & Euic4 Ratio Analysis
5nter=retation
Standard Ratio is 2/2
-ompany?s Euic4 Assets is more t!an Euic4 :iabilities for all t!ese < years.
In &))5,)* t!e ratio is increasing because of increase in ban4 and cas! balance.
So all t!e years !as +uic4 ratio e7ceeding 2( t!e firm is in position to meet its
immediate obligation in all t!e years.
In &))<,)C +uic4 ratio is decreased because t!e increase in +uic4 assets is less
proportionate to t!e increased +uic4 liabilities.
8!e Euic4 ratio 0as at its pea4 in &))5,)*( 0!ile 0as lo0est in t!e &))@,)<.
#.2.4 Networkin, Ca=tial
Networkin, ca=ital J Current Assets L Current 3iabilities
Net orkin! ca"ita#
Pear 2004<07 2007<0# 200#<09 2009<0; 200;<08
8rend 4534.3 10497.8 13798.0 28050.0 61577.0
8able <.' et0or4ing -apital
Figure <.' et0or4ing capital
5nter=retation
8!is ratio represents t!at part of t!e long term funds represented by t!e net
0ort! and long term debt( 0!ic! are permanently bloc4ed in t!e current
assets.
It is Increasing %ouble t!an year by year because of assets increasing fast t!an
liabilities.
#.4 Profitabilit "atios
A company s!ould earn profits to sur$i$e and gro0 o$er a long period of time. It
0ould be 0rong to assume t!at e$ery action initiated by management of company
s!ould be aimed at ma7imi=ing profits( irrespecti$e of social as 0ell as economical
conse+uences. It is a fact t!at sufficient must be earned to sustain t!e operation of t!e
business to be able to obtain funds from in$estors for e7pansion and gro0t! and to
contribute to0ards t!e responsibility for t!e 0elfare of t!e society in business
en$ironment and globali=ation.
8!e profitability ratios are calculated to measure t!e operating efficiency of t!e
company.
8!e follo0ing Profitability Ratios are calculated for t!e company.
"ross Profit Ratio
Operating Profit Ratio
et Profit Ratio
Rate Of Return On In$estment
Rate Of Return On D+uity
#.4./ >ross Profit "atio
8!is is t!e ratio e7pressing relations!ip bet0een gross profit earned to net sales. It is a
useful indication of t!e profitability of business. 8!is ratio is usually e7pressed as
percentage. 8!e ratio s!o0s 0!et!er t!e mar4,up obtained on cost of production is
sufficient !o0e$er it must co$er its operating e7penses.
>ross Profit "atio J >ross Profit F /00
.ales
$ro%% "ro&it ratio ana#'%i%
Pear 2004<07 2007<0# 200#<<09 2009<0; 200;<08
8rend 29.8 31.7 32.6 33.7 33.0
8able <.@ "ross Profit Ratio Analysis
Figure <.@ "ross Profit Ratio Analysis
5nter=retation
"P Ratio s!o0s !o0 muc! efficient company is in Production.
"P is decreasing &))5,)* due to !ig!er production cost.
"ross sales and ser$ices are increasing year by year so in effect "ross profit ratio is
icreasing year by year up to &))5.
#.4.2 )=eratin, Profit "atio
8!is ratio s!o0s t!e relation bet0een -ost of "oods Sold G Operating D7penses and
et Sales. It s!o0s t!e efficiency of t!e company in managing t!e operating costs
base 0it! respect to Sales. 8!e !ig!er t!e ratio( t!e less 0ill be t!e margin a$ailable
to proprietors.
)=eratin, Profit "atio J C)>.M)=eratin, e-=ences F /00
.ales
("eratin! ratio
Pear 2004<07 2007<0# 200#<<09 2009<0; 200;<08
8rend 83.5 80.0 79.0 77.9 81.7
8able <.< Operating Profit Ratio Analysis
Figure <.< Operating Profit Ratio Analysis
5nter=retation
Operating ratio is lo0est during current &))5.
8!is s!o0s t!at t!e e7penses incurred to earn profit 0ere less compared to t!e
pre$ious t0o years.
Operating ratio is decreses feom &))@ to an0ard decreasing rate.
From t!e grap! conclusion is made t!at company is not on t!e rig!t trac4 by
efficiently cutting do0n manufacturing( administrati$e and selling distribution
e7penses.

#.4.4 Net Profit "atio
J Net =rofit - /00
Net sales
Net "ro&it ratio
Pear 2004<07 2007<0# 200#<09 2009<0; 200;<08
8rend 16.3 19.4 19.2 19.8 17.7
8able <.C et Profit Ratio Analysis
Figure <.C et Profit Ratio Analysis
5nter=retation
After obser$ing t!e figure t!e ratio is fluctuating.
-ompany !as rise in its net profit in &))C,)5 as compared to t!e pre$ious year
because t!e company !as increased its sales @2.@<B .
8!oug! t!e company?s sale is continuously rising but t!e net profit is not so muc!
increased so management s!ould ta4e some steps to decrease its e7penses.
Sales is decrease in &))* compare to &))5
8!e o$erall ratio is s!o0ing good position of t!e company.
#.4.7 "eturn )n 5n(estment
Rate of Return on In$estment indicates t!e profitability of business and is $ery muc!
in use among financial analysts.
")5J +'5* F /00
*otal Assets
Return (n )n*e%t+ent
Pear 2004<07 2007<0# 200#<<09 2009<0; 200;<08
8rend 32.7 39.7 35.7 30.6 18.6
8able <.5 Rate of Return on In$estment Ratio Analysis
Figure <.5 Rate of Return on In$estment Ratio Analysis
5nter=retation
From t!e abo$e obser$ation it can be seen t!at ratio is fluctuating.
In t!e year &))<,)C Rate of Return on In$estment is slig!tly increase as compared
to pre$ious year
Ratio is decreasing after &))< at adecreasing rate because of asseets increase
compare to sales.
8!e company?s 8otal Assets is increased to *C.<2B( so ROI is decreased so
conclusion made t!at company is not utili=ing its assets and in$estment efficiently.
#.4.# "ate of "eturn on +6uit
Rate of Return on D+uity s!o0s 0!at percentage of profit is earned on t!e capital
in$ested by ordinary s!are !olders.
"ate of "eturn on +6uit J Profit for the +6uit
Net worth

Rate o& return on
e,uot'
Pear 2004<07 2007<0# 200#<<09 2009<0; 200;<08
8rend B 22.2 11.5 7.1 10.0 5.5
8able <.* Rate of Return on D+uity Ratio Analysis
Figure <.* Rate of Return on D+uity Analysis
5nter=retation
ROD is remaining almost same .et0een &))< to &))5( but it is decrease in&))*
because t!e t!e company !as increase s!are capital but profit not getting t!at muc!
increase.
-ompany is getting same return on e+uity.
As a result t!e s!are !olders are getting !ig!er return e$ery year and in$estment
portfolio sc!eme selection 0as a judicious decision ta4en by t!e company.
8!is !appens because Profit and S!are -apital bot! increasing same 0ay.
#.7 Asset *urno(er "atios
Asset 8urno$er Ratio are basically producti$ity ratios 0!ic! measure t!e output
produced from t!e gi$en input deployed. 8!is relations!ip is s!o0n as under
Producti(it J )ut=ut
5n=ut
Assets are inputs 0!ic! are deployed to generate production 1or sales3. 8!e same set
of assets 0!en used intensi$ely produces more output or sales. If t!e asset turno$er is
!ig!( it s!o0s efficient or producti$e use of input.
8!e follo0ing Assets 8urno$er Ratios are calculated for t!e company.
8otal Assets 8urno$er
et Fi7ed Assets 8urno$er
et 9or4ing -apital 8urno$er
In$entory 8urno$er Ratio
%ebtor 8urno$er 1in times3
#.7./ *otal Asset *urno(er "atio
8!e amounts in$ested in business are in$ested in all assets jointly and sales are
affected t!roug! t!em to earn profits. 8!us it is t!e ratio of Sales to 8otal Assets. .It is
t!e ratio 0!ic! measures t!e efficiency 0it! 0!ic! assets 0ere turned o$er a period.
*otal Asset *urno(er "atio J .ales
*otal Assets
-ota# a%%et% turno*er ratio
Pear 2004<07 2007<0# 200#<09 2009<0; 200;<08
8rend 1.5 1.5 1.6 1.5 1.2

8able <.A 8otal Asset 8urno$er Ratio Analysis

Figure <.A 8otal Asset 8urno$er Ratio Analysis
5nter=retation
8!e total assets turno$er ratio is almost same in all years.
8!e Assets turno$er Ratio is near by 2.< in all < years 0!ic! s!o0s effecti$e
utili=ation of assets from t!e company?s $ie0 point.
In t!e year &))<,)C ratio is increased because of company?s total assets is
increased by &@.<&B( but sales is increased by &A.A&B.So t!e ratio is increased but
in current year it is decreased because sale increasing by @2.@<B and Assets
increasing by @A.&*B.
#.7.2 Net 8i-ed Assets *urno(er
8o ascertain t!e efficiency 6 profitability of business t!e total fi7ed assets are compared
to sales. 8!e more t!e sales in relation to t!e amount in$ested in fi7ed assets( t!e more
efficient is t!e use of fi7ed assets. It indicates !ig!er efficiency. If t!e sales are less as
compared to in$estment in fi7ed assets it means t!at fi7ed assets are not ade+uately
utili=ed in business. Of course e7cessi$e sale is an indication of o$er trading and is
dangerous.
Net 8i-ed Assets *urno(er "atio J .ales
Net 8i-ed Assets
-ota# &i.e/ a%%et% turno*er ratio
Pear 2004<07 2007<0# 200#<<09 2009<0; 200;<08
8ime 4.0 4.2 4.9 4.0 2.4
8able <.2) et Fi7ed Asset 8urno$er Ratio Analysis

Figure <.2) et Fi7ed Assets 8urno$er Ratio Analysis
5nter=retation
>ere t!e ratio of et Fi7ed Asset 8urno$er is continuously increasing up to &))C
and after t!at it !as strated decline..ecause sales as 0ellas assets bot!s are e+ually
increase.
et Fi7ed Assets 8urno$er Ratio is increasing year by year because of Sale is
increasing continuously.
It indicates t!at t!e company ma7imi=es t!e use of its fi7ed assets to earn profit in
t!e business so t!at 0!ate$er amount is in$ested by company in fi7ed asset( gi$es
ma7imum producti$ity 0!ic! !elps to increase sales as 0ell as profit.
#.7.4 5n(entor *urno(er "atio
In$entory 8urno$er Ratio/ 8!e no. of times t!e a$erage stoc4 is turned o$er during t!e
year is 4no0n as stoc4 turno$er ratio.
5n(entor *urno(er "atio J C)>.
A(era,e stock
-ota# )n*entor' turno*er ratio
Pear 2004<07 2007<0# 200#<09 2009<0; 200;<08
8ime 30.3 22.6 24.3 19.8 16.0
8able <. 22 In$entory 8urno$er Ratio Analysis
Figure <. 22 In$entory 8urno$er Ratio Analysis
5nter=retation
From t!e abo$e calculation 0e can say t!at t!e ratio is decreasing. It mens
in$entory is not spdly con$ert in to sales. So t!at it is bad for t!e company.
In &))',)@ ratio is increased as compared to after t!at all year so management
s!ould ta4e care about good efficiency of stoc4 management.
.ut in &))C on0ard ratio is decreasing because of increase in -O"S. So company
s!ould de$ise a systematic operational plan for in$entory control.
#.7.7 A(era,e a,e of 5n(entories
8!is ratio indicates t!e 0aiting period of t!e in$estments in in$entories and is measured
in days( 0ee4s or mont!s. In$entory turno$er and a$erage age of in$entories are
in$ersely related.
A(era,e a,e of 5n(entories "atio J 490 das
5n(entor *urno(er
A*era!e a!e o& )n*entorie%
Pear 2004<07 2007<0# 200#<<09 2009<0; 200;<08
%ays 11.9 15.9 14.8 18.2 22.4
8able <. 2& A$erage age of In$entories Ratio Analysis
Figure <. 2& A$erage age of In$entories Ratio Analysis
5nter=retation
8!is grap! s!o0s t!at in$entory con$ert into cas! in s!ort time period.
In$entory turno$er ratio is lo0 in &))',)@ So In t!is year in$entory is con$erted in
cas! 22.A days.
8!e in$entory con$ersation in to cas! time duration is increases from &))@ to e$ery
year so t!e management s!ould tray to efficient in$entory con$ersation(so it 0ill It
s!o0s t!at company effecti$eness utili=ing its In$entories in +uic4ly.

#.7.# Debtor *urno(er "atio
%ebtor turno$er ratio/ 8!e debtor turno$ers suggest t!e no. of times t!e amount of
credit sale is collected during t!e year.
DebtorCs *urno(er "atio J .ales
A(era,e Debtors
0e1tor% turn o*er in 2ti+e%3
Pear 2004<07 2007<0# 200#<<09 2009<0; 200;<08
8ime 4.9 3.8 3.7 3.7 1.5
8able <. 2' %ebtor 8urno$er Ratio Analysis
Figure <.2' %ebtor 8urno$er Ratio Analysis
5nter=retation
%ebtor turno$er indicates !o0 +uic4ly t!e company can collect its credit sales
re$enue.
>ere t!e ratio is continuously decreasing( so t!at t!e company?s collection of credit
sales is efficient management is impro$ed its collection period e$ery year so it
s!o0s t!at t!e management !a$e an ability to collect its money from !is debtors. So
t!ey can in$est t!at money on Assets( >R% and ot!er in$estments.
#.# 8inance .tructure "atios
Finance Structure Ratios indicate t!e relati$e mi7 or blending of o0ner?s funds and
outsiders? debt funds in t!e total capital employed in t!e business. It s!ould be noted t!at
e+uity funds are t!e prime fund 0!ic! increase progressi$ely t!roug! rein$estment of
profits( 0!ile outside debt funds are supplementary funds and are added at t!e discretion
of t!e management.
8!e follo0ing Finance Ratios are calculated for t!e company.
%ebt Ratio
%ebt,D+uity Ratio
Interest -o$erage Ratio
#.#./ Debt "atio
%ebt ratio indicates t!e long term debt out of t!e total capital employed.
Debt "atio J 3on, *erm Debt
*otal Ca=ital +m=loed
8able <. 2@ %ebt Ratio Analysis
Debt "atio
2004<07 2007<0# 200#<09 2009<0; 200;<08
*rend ).)&*@ ).)2C< ).)22@ ).)'*' ).'*@
Figure <. 2@ %ebt Ratio Analysis
5nter=retation
From t!e abo$e calculation it seems t!at t!e ratio is fluctuating.
In &))5,)* t!e ratio is increased as compared to t!e pre$ious year because t!e total
loan funds are increased by CC2.<CB.
In &))<,)C -ompany !as issued e+uity S!are and also loan is decreased.
Its means t!at no0 company trying to increasing 8rading on e+uity.
#.#.2 Debt<+6uit "atio
8!is ratio is only anot!er form proprietary ratio and establis!es relation bet0een t!e
outside long term liabilities and o0ner funds. It s!o0s t!e proportion of long term
e7ternal e+uity 6 internal D+uities.
Debt +6uit "atio J *otal 3on, *erm debt
.hare holder e6uit
8able <.2< %ebt , D+uity Ratio Analysis
Debt< +6uit "atio
Dear 2004<07 2007<0# 200#<09 2009<0; 200;<08
*rend ).)&5 ).)2& ).)22 ).)') ).'5C
Figure <. 2< %ebt,D+uity Ratio Analysis
5nter=retation
It s!o0s companies accumulated more e+uity t!an re+uired company !as to refocus
to its strategic policies and plans and try to accumulate more debt funds in future so
as to ma4e t!e balance bet0een debt and e+uity.
8!ere is only current year ratio is some 0!at sufficient.
#.#.4 5nterest Co(era,e "atio
Interest -o$erage Ratio/ 8!e ratio indicates as to !o0 many times t!e profit co$ers
t!e payment of interest on debentures and ot!er long term loans !ence it is also
4no0n as times interest earned ratio. It measures t!e debt ser$ice capacity of t!e firm
in respect of fi7ed interest on long term debts.
5nterest Co(era,e "atio J +'5*
5nterest
)ntre%t co*era!e ratio
Pear 2004<07 2007<0# 200#<<09 2009<0; 200;<08
8rend 3.4 5.0 4.5 4.2 21.9
8able <. 2C Interest -o$erage Ratio Analysis
Figure <. 2C Interest -o$erage Ratio Analysis
5nter=retation
After obser$ing t!e figure it s!o0s t!at t!e ratio !as mi7 trend up to &))C.
In t!e year &))5,)* company !as not muc! debt compare to D.I8 so interest
co$erage ratio is !ig! but in &))5,)* company increasing its e7ternal debt so
company !a$e pay more interest among its earnings so interest co$erage ratio
falling do0n compare to pre$ious year.
#.9 :aluation "atios
Valuation ratios are t!e result of t!e management of abo$e four categories of t!e
functional ratios. Valuation ratios are generally presented on a per s!are basis and
t!us are more useful to t!e e+uity in$estors.
8!e follo0ing Valuation Ratios are calculated for t!e company.
Darnings Per S!are
%i$idend pay,out Ratio
PFD Ratio
Profit Margin
#.9./ +arnin,s Per .hare
8!is ratio measures profit a$ailable to e+uity s!are !olders on per s!are basis. It is not
t!e actual amount paid to t!e s!are !olders as di$idend but is t!e ma7imum t!at can
be paid to t!em.
+arnin,s =er .hare J Net Profits for +6uit .hares
No. of +6uit .hares
8able <.25 Darnings per S!are
+arnin,s Per .hare
Dear 2004<07 2007<0# 200#<09 2009<0; 200;<08
*rend!"s.$ 5.@' 22.5) 2@.5) &).C& &&.C&

Figure <.25 Darnings per S!are Ratio Analysis
5nter=retation
Darninig per s!are is increasing as a increasing rate it is good for in$ester and s!are
!older.
In &))5,)* Profit is increasing by @&.')B and o D+uity s!are >older increased by
&.)'B( %ue to t!at DPS Ratio is increasing in -urrent year.
#.9.2 Di(idend Pa<out "atio
8!is ratio indicate split of DPS bet0een -as! %i$idends and rein$estment of Profit. If
t!e -ompany !as Profitable projects t!an it 0ill prefer to 4eep di$idend pay out ratio
lo0er.
Di(idend =a<out "atio J Di(idend =er .hare in "s.
+arnin,s =er share in "u=ees
8able <. 2* %i$idend Pay,out Ratio Analysis
Di(idend =a<out "atio
Dear
2004<07
2007<0# 200#<09 2009<0;
200;<08
*rend!"s.$
2.<@
@.C* &.A@ '.55
'.@'

Figure <. 2* %i$idend Pay,out Ratio Analysis
5nter=retation
In all years t!ere is fluctuation in ratio.
If t!e company 0ants to prosper in future 0it! flying colors t!en ideally more
amounts s!ould be rein$ested in t!e business rat!er t!an distributing as di$idend.
In &))<,)C company !as rein$ested in business for e7pansion.

#.9.4 PG+ "atio
PFD Ratio is computed by di$iding t!e current mar4et price of a s!are by earning per
s!are. 8!is is Popular measure e7tensi$ely used in In$estment analysis.
PG+ "atio J Current &arket Price of .hare
+arnin,s =er .hare
8able <. 2A PFD Ratio Analysis


PG+ "atio

Dear
20004<07
2007<0# 200#<09 2009<0;
200;08
*rend
'2.'C
2A.A2 2<.*< 22.')
2).')

Figure <. 2A PFD Ratio Analysis
5nter=retation
In &))@,)< PFD Ratios is !ig! means S!are price of company is Stable and S!are
!older are interested to in$est in t!e company?s s!are.
.ut in &))C,)5 PFD Ratio is Falling do0n 0ord So company s!are price is not as
stable as compare to pre$ious year.
#.9.7 Profit mar,in ratio
Profit mar,in ratioJ PA*G.alesN/00
Dear 2007-08 2009<0; 200#<09 2007<0# 2004<07
et Sales and Ser$ices 199796 /7EE82 /09040 8/90#.9 #8700.24
PA* 32829 2E,72/ 209;7 /928#.7 2)'2<
Ratio 16, 20, 19, 20, 18,
8able <. &) Profit margin ratio
Figure <. &) Profit margin ratio
5nter=retation
8!e ratio is s!o0s e+ual for middle t!ree year it means t!e company !as maintain
t!e e+ual ratio for year &))< to &))5.
8!e ratio s!o0s decline in current year it is bad sign for t!e company.
#.; *he Du<Pont Chart
8able <.&) %o,Pont c!art
Sales
&))5,)* /EE#;#

&))C,)5 /7E;#/
&))<,)C /09/97
&))@,)< 8/#E9
&))',)@ #8978
Assets turn o$er1in Rs.3
&))5,)* /.E4

&))C,)5 2.9#
&))<,)C 4.42
&))@,)< 4.4E
&))',)@ 7.20
Profit margin 1in B3
&))5,)* 0./9

&))C,)5 0.20
&))<,)C 0./E
&))@,)< 0.20
&))',)@ 0./8
Profit after ta7
&))5,)* 4282E

&))C,)5 2E72/
&))<,)C 209;7
&))@,)< /928#
&))',)@ /04/#
Sales
&))5,)* /EE#;#

&))C,)5 /7E;#/
&))<,)C /09/97
&))@,)< 8/#E9
&))',)@ #8978
Asset
&))5,)* /04/90

&))C,)5 #9#4#
&))<,)C 4/E#/
&))@,)< 2707E
&))',)@ /4E9E
Figure <. &@ 8!e %u,Point -!art
ROA 1I B3
&))5,)* 40.88
&))C,)5 #4
&))<,)C 94.08
&))@,)< 9;.8
&))',)@ ;#.9
5nter=retation
%uPont c!art s!o0s t!at !o0 profitability is t!ere in t!e business. 9!en profit
margin is multiplied by total Assets turno$er ratio t!at gi$es ROA. Profit Margin is
obtained by di$iding PA8 by 8otal sales. 8otal Asset 8urno$er is obtained by t!e sales
di$ided total assets.
It is li4e a 8ree !a$ing $arious brac!es connected to eac! ot!er.
It s!o0 company?s efficiency in ma4ing rig!t decision of In$estment
8otal Assets turno$er is decreasing in current year because of !uge increase in net fi7
assets and net current asset 0!ic! is more t!an double compare to pre$ious year.
8!e -!art s!o0s t!e total assets turno$er t!at indicate t!e company?s efficiency in
utili=ing its assets.
So o$erall it can be interpreted t!at t!e company?s ROA is good .
-ompany s!ould try its best to increase sales and profit.
8!e %u point c!art S!o0s t!e complete picture of company?s performance.
Chapter %.
Scenario Analysis
Com=an Analsis
.hare 0oldin, Pattern
Chapter %.
Scenario Analysis
Com=an Analsis
.hare 0oldin, Pattern
9. .C+NA"5) ANA3D.5.
9./.'usiness ?nit Performance

9.2.Com=an Analsis
9.2./. .hare 0oldin, Pattern
FIND
INGS
8!oug! t!e sales !as been continuously increased from past ' years but t!e
proportionate e7penditure is also rising so o$erall not ma4ing any !uge effect on net
profit of t!is company.
>ear t!e in &))< company !as rein$est profit for business e7pansion it is good
s!ine for t!e company.
8!e total e7penditure is near by *)B of total income in e$ery year.
D$ery year P.8 is near by &)B of total income.
Fi7ed assets are efficiently utili=ed by t!e company due to 0!ic! t!e profit of t!e
company is increasing e$ery year.
:iabilities is incressing rate it mean company !as to de$eloped business. And
purc!ase ra0 material on credit basis.
-ompany !as enoug! cas! in !and so t!at in any condition company can ta4e
Any Financial decision easily.
All t!e years !as +uic4 ratio e7ceeding 2( t!e firm is in position to meet its
immediate obligation in all t!e years.
"P Ratio s!o0s !o0 muc! efficient company is in Production.

SUG
GESI!N
8!e company?s future plans for e7pansion seem clear due to increased
in$estment in Fi7ed Assets .Dfficient use of t!ese Assets !as enabled t!e
company to obser$e an increased profit.
8!oug! t!e company?s sale is continuously rising but t!e net profit is not so
muc! increased so management s!ould ta4e some steps to decrease its
e7penses.
-ompany s!ould try its best to increase sales and profit.
8!e profit margin ratio s!o0s decline in current year so t!at company s!ould
tray to increase profit after ta7
-urrent ratio is $ery good it is &.2'/2 so company !as fully utili=e cas!
li+uidity for business de$elopment.
Anne&ure
ANN+F?"+</
'A3ANC+ .0++* "s !5n &illion$
200;<08 2009<0; 200#<<09 2007<0# 2004<07
.)?"C+. )8 8?ND.
S!are >olderIs Funds
S!are -apital &A&' &A2* &*<& 2@)5.2@ @C<.<&
S!are application money
pending a @) '< 5< 2&.)<
Reser$es 6 Surplus 22'AA2 A')@& C'&)& <2@)5.2 '5)*'.5
.hare holderAs +6uit //9E#7 E#EE# 99/2E #2829.4 4;#7E.#
:oan Funds
Secured &)5& 2@*A @<2 &2<.*A A@5.@5
#nsecured @&55* &''* ')5 @)<.)' 2)<.**
*otal 3oan 8unds 778#0 482; ;#8 920.E2 /0#4.4#
Minority Interest 22C &A , &C<.'' 2C'.*@
*otal .ources of 8unds /9/E20 EE8#/ 9988; #4;/2.9 48;99.;
APP35CA*5)N )8 8?ND.
8i-ed assets
"ood0ill @&&)A A@55 '<&* <CC'.2C <&<&.'C
"ross .loc4 <C&*) '<&*5 &@*2C &)*AA.C 2<C)5.2
:ess/
Accumulated %epreciation &*)C5 2*AA' 2&A22 AA<2.55 5<AA.@*
et .loc4 &*&2' 2*&A@ 22A)< 2)A@5.A *))5.C'
-apital 0or4 in progress and
ad$ances 2''5) 2)2A2 C&<) &C)'.*< 2@&5.&*
*otal 8i-ed Assets 84;E2 4;E92 2/984 /E2/7.E /798;.4
5n(estments /9022 4427E 408/2 24#07.E /E0#8.8
Deferred *a- Assets!Net$ #2E #E0 #E7 7E# 789.4
-urrent Assets( :oans 6 Ad$ances
In$entories CCC@ @2<) &)C< 25@5.&< 2&A&.)&
Sundry %ebtors @)@<' &A'A2 &2&5& 2<<2*.' 22*C<.C
-as! 6 .an4 .alances 'A&5) 2A*&& **<* <52'.<5 '&@&.5
:oan 6 Ad$ances &AC2) 2C'*5 2&*2* <<C&.*< <C*'.5*
8otal -urrent Assets 22<AA5 CA5<) @<)2' &*<@& &&)*@.2
:ess/
-urrent :iabilities 6 Pro$isions
-urrent :iabilities 'A*A) ''CC5 2*<&5 2&5@&.2 **A@.&
Pro$isions 2@<') *)'' 2&C** <')&.2@ *C<<.<*
8otal :iabilities <@@&) @25)) '2&2< 2*)@@.& 25<@A.*
Net Current Assets 9/#;; 280#0 /4;E8 /07E;.8 7#47.28
8otal Application of Funds
ANN+F?"+<2
P")85* 2 3).. ACC)?N*
RS. 1In Million3
2007-08 2009<0; 200#<09 2007<0# 2004<07
5ncome
"ross Sales and Ser$ices 201451 2<2('') 2)C*)< *&'').' <A2C2.)5
:ess/ D7cise %uty 1655 2'@* 55< 5&@.5 5C).*@
et Sales and Ser$ices 199796 /7EE82 /09040 8/90#.9 #8700.24
Ot!er Income 4174 &AC' 2<'C A@@.5A 2'2<.AA
*otal 5ncome 203970 /#2E7# /0;#99 82##0.4 <A52C.&&
+-=enditure
-ost of Sales and Ser$ices 140224 2)&@&) 52@*@ <@)*2.@ 'A2<).&'
Selling and mar4eting
e7penses 14216 A<@5 5))' <C'*.2' <@)2.C@
"eneral and administrati$e
e7penses 10750 2&@ '< <C.2& ')A5.2<
Interest 1690 5*CC <&C< '*&C.A2 '<.)5
*otal +-=enditure 166900 //EE#; 84;8; 94902.9 @5C*@.'A
P")85* '+8)"+ *AFA*5)N 37070 '&A** &'55A 2*A@5.* 2&)'2.*'
Pro$ision for ta7ation including F.8 4550 '*C* ''A2 &5@A.<A 2C*).<C
P")85* '+8)"+ &5N)"5*D
5N*+"+.* G.0A"+ 5N
+A"N5N> )8 A..)C5A*+. 32520 2E/20 20488 /9/E8.2 2)'<2.&5
Minority interest -24 C ,2 **.2& ,<A.2A
S!are in earning of Associates 333 &A< &** 25<.'' &&.A&
P")85* 8)" *0+ P+"5)D
!PA*$ 32829 2E,72/ 209;7 /928#.7 2)'2<
Appropriations
Interim di$idend 2919 5&'* <*2*.A*
Proposed di$idend 5846 2@<A 52&A '@5*.*@ A'2.)@
8a7 on di$idend 1489 2&C* 2))) @A'.'* *C@.*<
*"AN.8+"*) >+N+"A3
"+.+":+ 22575 /E7#9 /2#7# /24/4.2 &5)).2'
EARNINGS PER SHARE-EPS
Equity shars !" #ar $a%u Rs.2&- a'h
.asic 1in Rs.3 22.62 &).C& 2@.5 //.; 2@.*5
%iluted 1in Rs.3 22.51 &).@2 2@.@* //.9 2@.*<
Nu()r !" Shars "!r 'a%'u%ati*+ EPS
.asic 1in Rs.3 2(@<2(2&5(52A 2(@&C(ACC('2* 2(@)C(<)<(A5@ 2('A2(<<@('5& CA'(*5)('A)
%iluted 1in Rs.3 2(@<*(&'A()C) 2@@2.@CA(A<& 2(@&5(A2<(5&@ 2(@)@(''@(&<C CA@(<@<('&2
ANN+F?"+<4
CA.0 83)@ .*A*+&+N* 8)" *0+ D+A" +ND+D )N &A"C0 4/
"s!5n &illion$
2008 200; 2009 200# 2007
A. Cash 8low from )=eratin, Acti(ities
Adjustments for /
%epreciation and amorti=ations <'<A '(A5*
'()AC &(@<C.&@
2A52.*<
Amorti=ations of stoc4 compensation
22CC 2()5* C** '@&.C&
#nreali=ed foreign e7c!ange et ,<A< @<5 C< A&.@< ,2'&.55
Interest on borro0ings 2CA) 2&< '< <C.2&
%i$idendFinterest O et ,&*)& ,&(22* ,2()CA 52<.2< ,5C&.@2
1Profit3F:oss on sale of in$estments ,552 ,<** ,&'* '<.<A
"ain on sale of fi7ed assets ,25@ ,2) ,* 2)A.* ,2)5
9or4ing -apital -!anges /
8rade and ot!er recei$able ,22**< ,5(C'' ,C(AA2 @(@''.CA ,'C5).@2
:oans and ad$ances ,<2<5 ,&AA ,2()'' '22.5@ ,'<A.*A
In$entories ,2<C< ,2(2&) ,'25 @<<.&' ,&*2.<
8rade and ot!er payables C2*& <(@@< C(2<) @(2*).@& &5@*.2'
et cas! generated from operations &*<2* '&(')' &@(2)& &)(@<C.)) ,<A@
%irect ta7es paid ,<@<A ,@(&<& ,@(<@' &('<@.5) ,2<C*.'C
Net cash ,enerated b o=eratin,
acti(ities &')<A &*()<2 2A(<<A 2*(2)2.') ,&2C&.'C
'. Cash flows from in(estin, acti(ities:
Ac+uisition of property( fi7ed assets
Plant and e+uipment1Inc. ad$ances3 ,2@&&C ,2'())< ,5A&5 C(@C<.@' ,@2)).A5
Proceeds from sale of fi7ed assets @5A 2@A 22' 2C*.A* 2&2.*C
Purc!ase of in$estments ,&'2C*@
,
2&'(<5A
,
<A()@5 5)(2@<.22
,
2)5)C.<2
Proceeds on saleFfrom maturities on
In$estments &<))2' 2&&)@& <&()@' CC('*'.<@ @*.)C
Inter,corporate depo sit 2<) ,C<) , &*<.'
et payment for ac+uisition of .usiness ,'&5A) ,CC)* ,&(555 C25.AA ,@C<.&5
%i$idendFinterest income recei$ed &@A) &(22* A&' &<@.2< 555.*<
Net cash ,enerated bG!used in$
5n(estin, ,&<<C* ,2A<''
,
2CC5& 2@@)'<.&
,
2@)'A.C*
C. Cash flows from financin, acti(ities:
Proceeds from e7ercise of Dmployee
Stoc4 Option <@2 A(@<* @(5)@ &(<5C.<* &'*.C
S!are application money pending
allotment @) '< C' 2&.)<
Interest paid on borro0ings ,2CA) ,2&< ,'< <C.2&
%i$idends paid 1including distribution ta7 ,2&C'& ,*(*5< ,'(AA* 5(<5<.5C ,&C&.'C
ProceedsF1repayment3 of long term ,5@A5) 2@& ,&C* , @C'.)&
ProceedsF1repayment3 of s!ort term 22)C@2 2*&< ,&)) @'&.@'
Proceeds from issuance of s!ares by
Subsidery << '< &CC.2A 2@5.<'
Net cash ,enerated b financin,
Acti(ities &2A*< &@A< &CC ,<&)A
,
2&A<@.@*
et increase in cas! and cas! e+ui$alents
%uring t!e period 2A@5C 22)2' '2<@ &@CA.A< ,A<*.55
-as! and cas! e+ui$alents at t!e
.eginning of t!e period 2A*&& **<* <52@ '&@&.5 @&2).)*
Dffect of translation of cas! balance ,&* ,@A ,2) ).A& ,*.C2
-as! and cas! e+ui$alents at t!e end of
Period J 'A&5) 2A*&& **<* <52'.<5 '&@&.5
Bi'lio(raphy
"I"#I!G$AP%Y
'ooks:
Annual Report of 9ipro :imited for Financial Pear &))@,)<( &))C,)5(&))5,)*.
arayanas0amy R.( 12AA*3/ SFinancial AccountingT/ A Managerial Perspecti$e(
Prentice,>all of India Pri$ate :td( e0 %el!i.( 8!ird Ddition( Reprint &))'
K!an M.P. and Kain P.K.( 12AA&3/TFinancial ManagementT( 8ata Mc"ra0,>ill
Publis!ing -o :td.( e0 %el!i.( 8!ird Ddition.
.
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