ASSIGNMENT 1.

FINANCIAL REPORT
Submitted By-

Rahul Gupta 2016A4PS0366H

1.3.1) OBJECTIVE OF CSR POLICY

The objective of CSR Policy at Atul Auto is to support the guiding principle of “Together
We Grow”. Through the CSR initiatives, the Company strives to provide equitable
opportunities for sustainable growth, thereby aligning with our goal to build Atul Auto
into an organization which maximizes Stakeholder Value.

The Company would engage in activities whereby business further contributes to make
a positive and distinguishing impact on the environment, customers, employees,
suppliers and other stakeholders.

The CSR Policy of the Company would develop a systematic approach to administer CSR
activities undertaken as per the Policy.

1.3.2)DEFINITION

Corporate Social Responsibility means to balance economic, social and environmental

objectives while addressing stakeholder expectations and enhancing shareholders
value. It is a responsible way of doing business.

1.3.3) CORE AREAS OF CSR

The CSR objective of the Company will be achieved through concentrated and dedicated
initiatives encompassing the following identified core areas:

 Education
 Health& Medical Care
 Community at large
 Environment
EDUCATION:

 To encourage the development of human capital of the Nation by expanding

human capabilities through skills development, vocational training etc. and by
promoting excellence in identified cultural fields.
 Including special education and employment enhancing vocation skills specially
among children, women, elderly, and differently abled and livelihood
enhancement projects
 Contribution or funds provided to technology incubators, located within
academic institutions which are approved by the Government;
Awards/scholarships to meritorious students

HEALTH & MEDICAL CARE:

 Promoting preventive Health care measures

 Donation of ambulances to Medical Centres/Hospitals/NGOs, hearing aids/wheel
chairs to physically challenged people, Financial assistance and medical
equipment to hospitals, dispensaries etc.
 Actively supporting healthcare programmes of nearby hospitals,Funding their
charity hour programs etc.

COMMUNITY AT LARGE:

 A better life-style for our fourth grade employees, by providing better

employment opportunities to them within the organization.
 Setting up homes and hostels for women and orphans, setting up old age homes,
day care centers and such other facilities for senior citizens and measures for
reducing inequalities faced by socially and economically backward groups.
 Increase employment count of especially abled employees in the Company.
 Rural development projects.

ENVIRONMENT:

 Ecological balance, protection of flora and fauna, animal welfare, conservation of

natural resources and maintaining quality of soil, air and water
 Recycling waste for energy production and installation of solar panels
 Reducing paper usage for prints etc. Observing no print day atleast once a month
 Generation of alternative energy through renewable resources i.e. Wind Turbine,
Solar plants etc.
1.3.4) ECONOMIC VALUE ADDED

Over the past several years, an alternative performance measure called the Economic
Value Added (EVA) has been gaining acceptance around the globe and has also been
acknowledged by institutional firms as a credible performance measure in order to
overcome the limitations of accounting based measures of financial performance

The Parameters for Economic Value Added are –

I .Return to Shareholders
Return to shareholders comprises of –

(i)Capital Gain

Share Price grew from 144 to 396 in past 5 years indicating returns for minority
shareholders of the company as well as the institutional investors.
ii) Dividend Yield

Dividend Yield
1.40%
1.20%
1.00%
0.80%
0.60%
Dividend Yield
0.40%
0.20%
0.00%
FY FY FY FY FY
2014 2015 2016 2017 2018

Analysis of Dividend Yield

1. The company rewarded its shareholders by increasing its dividends from

1.04 % to 1.33%
2. This is the sign of a shareholders friendly management.
3. It indicates that the company took interest in providing value growth for
minority investors by timely announcements of dividends.

iii)WACC(Weighted Average Cost of Capital)

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Cost of 11.50% 11.80% 13.00% 12.00% 10.10%

Equity
Weight of 100.00 100.00% 100.00% 100.00% 100.00%
Equity %
Weight of 0.00% 0.00% 0.00% 0.00% 0.00%
Debt
WACC 11.50% 11.80% 13% 12% 10.10%

Analysis of WACC

1. Weighted Average Cost of Capital for Atul auto has been almost constant over the
years .The graph shows that company is debt-free and is only financed through
equity.
 2. So the company can use their funds for distributing dividends rather than paying
interest expenses which makes it a strong pick for the equity investors.

II.) Market Capatilization

Market Cap grew from Rs 2619 Lakh IN 2009-10 to Rs 102464 lakh IN 2016-17 with
maximum of Rs 122125 Lakh in 2014-15 indicating strong economic value addition.

SIGNIFICANCE OF MAJOR DECISION IN FINANCIAL MANAGEMENT

After Analysing CAGR of Sales,Profit,Fixed Assets with respect to industry and economy
we come to a decision regarding the three major decisions of financial management.

Out of the three major decisions, financing is the most important decision for ATUL
AUTO .
This is because it is growing at an impressive rate of CAGR in

all three fields i.e. Sales,Profit,Fixed Assets with respect to the

industry

COMPARE AND CONTRAST