# A PROJECT REPORT ON

“A STUDY OF RATIO ANALYSIS ON HERO HONDA COMPANY”
Submitted to

Yashwantrao Chavan Maharashtra Open University, Nashik
IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION

Submitted by Mr. SACHIN SUDHAKAR PATRIKAR PRN.NO. 2008017000783581 M.B.A. Final Year

(IN FINANCIAL MANAGEMENT)
Guide Dr. M.A. BURGHATE
STUDY CENTRE:

DHANAWATE NATIONAL COLLEGE,NAGPUR

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INTRODUCTION OF TOPIC
The basic requirement to start a new business is -7-mman, machine, material, market, method, management and money. But the most important factor is money because with the help of money, we can arrange the other six factors. So the basic need start with money and to arrange it, every new unit has to undergo a process of project financing. Project financing is a process of arranging money from is supplier’s i.e. Banker. Financial statement analysis is important to board, manager and other who make the judgment of financial health of the org. comparative data and this comparison is best presented with help of ratio. Ratio analysis can be used to compare the risk and return relationship of firm. Ratio analysis is widely used tool of financial analysis. It is defined as the systematic use of ratio to interpret the financial statement so that the strengths and weakness of a firm and current financial condition can be determined. Ratio analysis is the process of determining and presenting in arithmetical terms the relationship between figures and group of figures drawn from these statements. A ratio may be defined as the indicated quotient of two mathematical expressions and as the relationship between two or more things. The ratio can be calculated by dividing one figure by the other. The quotient so obtained in the ratio of the figures.

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Ratio May be Expressed in Three Ways:
1. Rate: This is the ratio between the two numerical facts over period of time. E.g. stock turnover is three times a year. 2. Pure ratios or proportions: which are arrived at by the simple division of one number by another e.g. current asset to current liability ratio is 2:1.
3. Percentage: which is a special type of rate expressing the

relationship in hundred. It is arrived at by multiplying the quotient by 100 e.g. gross profits is 25% of sale.

Step Involved in Ratio Analysis:
• The first task of the financial analyst is to select the information relevant to the decision under consideration from the statements and calculates appropriate ratios. • The second step is to compare the calculated ratios with the ratios of the same firm relating to past or with the industry ratios. This step facilitates in assessing success or failure of the firm. • The third involves interpretation, drawing of inferences and report writing. Conclusion are drawn after comparison in the shape of report or recommended course of action.

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CLASSIFICATION OF RATIO ANALYSIS

1. The liquidity ratios 2. The leverage ratios 3. The activity ratios 4. The profitability ratios

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LIQUIDITY RATIOS

Liquidity ratios measure the firm’s ability to meet its current obligations i.e. ability to pay its obligations as and when they become due. They show whether the firm can pay its short term obligations out of short term resources or not. Liquidity radios establish a relationship between cash and other current assets to current obligations. Low liquidity may result in the

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Acid test or quick ratio.g. a current ratio of 2:1 is considered an ideal one. the short term solvency of the firm is considered doubtful and it shows that the firm is not in the position to meet its current liabilities in time. In a sound business. 2. Liquidity ratios are: 1. Current assets include cash and those other assets which can be converted into cash within one year such as marketable securities accounts receivables stock (debtors) stock (inventories) and prepaid expenses. 5 . income tax liability and long term debts due to nature within current year. A very high degree of liquidity is also bad because the funds are unnecessarily tied up in current assets which earn nothing.failure of meeting firm’s short term liabilities and unnecessary law suits. 1. bank overdraft. Current ratios. Current ratio expresses relationship between current assets and current liabilities and can be calculated by dividing current assets by current liabilities e. Current liabilities include those liabilities which are to be paid by the firm within one year and include creditor’s bills payable accrued expenses. Current Ratio: Current Ratio = Current Assets ÷ Current Liabilities.1. If current ratio is lower than 2:1.

• It is a test of credit strength and solvency of a firm. Acid Test Ratio or Quick Ratio: Quick Ratio = Quick or Liquid Assets ÷ Currents Liabilities. Liquid assets include can and those assets which can be converted into cash immediately without loss of value such as securities (temporary investments). more than 2:1 indicates sound solvency position. and debtors and bills receivables (book debts) stock and prepaid expenses are not included in quick assets. Acid test or quick ratio a more refined to measure the firm’s liquidity. • It indicates the capacity to carry on effective operations. • It shows short term financial strength.e. It indicates the relation between strictly liquid assets whose value is almost certain one hand. • Higher ratio i. • It discloses the over trading or under capitalization.Significance of current ratio: • Current ratio indicates the firm’s ability to pay its current liabilities. one strictly liquid liabilities on 6 . It establishes relationship between quick or liquid assets and current liabilities. • It indicates the strength of the working capital.2. A quick ratio 1:1 is considered ideal and represents a satisfactory financial position. 1. This ratio is also called liquid ratio.

Liquid assets comprise all current assets minus stock and prepaid expenses.the other. • Lower ratio i. These ratios indicate the funds provided by the long term creditors and owners. less than 1:1 indicates financial difficulty. • It is a stringent test of liquidity. • Higher ratio i. LEVERAGE RATIOS A firm must have strong financial position to meet its short term as well as long term obligations. • This is an important ratio of financial institutions. To judge the long term financial position of the firm leverage or capital structure ratios are used. 2.e.e. • If the current ratio is more than 2:1 but liquid ratio is less than 1:1 it indicates excessive inventory. The long term creditors are interested in the soundness of a firm on the basis of long financial position. Leverage ratios are: 7 . Stock is excluded from liquid assets on the ground that it is not converted into cash in the immediate future. Significance of Quick Ratio: • It is the true test of business solvency. Liquid liabilities comprise all current liabilities minus bank overdraft. more than 1:1 indicates sound financial position. • It gives better picture of firm’s ability to meet its short term debts out of short term assets.

In the other words.1. sundry creditors and bills payable. 8 . A high debt company also known as highly leveraged or geared is able to borrow funds on very restrictive terms and conditions. As acceptable norm for this ratio is considered to be 2:1. Debt equity ratio. A low debt equity ratio implies a Greater claim of owners than creditors. Debts is includes debentures. Debt is also known as share holder fund or internal liability.1. accumulated profit. The debt equity ratio is the measure of relative claims of creditors and owners against the firm’s assets. it represents a satisfactory. Debt Equity Ratio: Debt Equity Share = Debt ÷ Equity. long term loans and borrowing. Proprietary ratio. reserves and surplus. Equity is includes equity share capital. 2. 2. There are various interpretations of debt and equity and therefore debt equity ratio may be calculated in number of ways. A high ratio shows that the claims of creditors are greater than those of owners. preference share capital. How much fund has been provided by the owners and how much by outsiders in the acquisition of total assets is a very significant factor affecting the long term solvency position of a concern. the relationship between borrowed funds and owners capital is popular measure of the long term financial solvency of a firm.

These ratios express relationship 9 . • It shows the proportion of assets financed by the proprietors. • It is a test of long term credit strength. This ratio shows the general strength of the company. Significance of proprietary ratio: • It indicates long term solvency of the firm. investments.2. preference share capital and total assets includes current assets. This is the ratio to calculate the contribution of share holder fund in total assets. Share holder funds includes capital equity share. • It measures the extent of protection available to creditors. fixed assets etc. ACTIVITY RATIOS Activity ratios are concerned with how efficiently the assets of the firm are managed. it is very important to creditors as it helps them to find out the proportion of shareholders funds in the assets used in the business.2. Proprietary ratio relates the shareholders funds to total assets. 3. these ratios are called efficiency ratios. The acceptable norm of the ratio is 1:3. Sometimes. Proprietary Ratio: Proprietary Ratio = Share Holder ÷ Total Assets. Higher ratio indicates a secured position to creditors and a low ratio indicates greater risk to creditors.

The greater t rates of turnover or conversion. 10 . Inventory turnover ratio. 2.1. Fixed asset ratio. Activity ratios include – 1. 3. the more efficient utilization or management other things being equal. (Average inventory = Opening Stock +Closing Stock ÷ 2). The efficiency with which assets are used would be reflected in the speed and rapidity with which assets are converted into sales. Inventory turnover ratio: Cost of Goods Sold = Opening Stock + Manufacturing Cost + Purchase – Closing Stock of Inventory.between the level of sales and the investment in various assets.

for it has managed to operate with a relatively small average locking up of funds. This ratio is calculated by dividing sales into fixed assets. This ratio is calculated to consider the adequacy of quantum of capital and its justification for investing in inventory. It is used to highlight the extent or utilization of the 11 .2. It measure the relationship between goods sold and inventory level. suffering possibly form obsolescence too aggressive sales forces. This ratio indicates the number of times inventory or stock is replaced during the year. Significance of inventory turnover ratio: • A high inventory turnover ratio is better than a low ratio. It is an indication of excessive inventory turnover investment in inventory.(Inventory Turnover= Cost of Goods Sold ÷ Average Inventory). This ratio indicates whether investment in inventory is within proper limit or not. • A low inventory turnover ratio is dangerous. Fixed Assets Turnover: Fixed Assets Turnover = Sales ÷ Fixed Assets. A low sale to inventory ratio may indicate a slow moving inventory. The higher the turnover the better is the performance of the company. This is also known as stock velocity. 3. • A high ratio implies good inventory management and an indication of under investment. The quantum of stock should be sufficient to meet the demands of the business but it should not be too large to indicate unnecessary lock up of capital in stock and danger stock.

Lower ratio means under utilization of fixed assets. It is also known as sales to fixed asset ratio. 4.company’s plant and equipment. greater is the intensive utilization fixed assets. Gross profit ratio. who invest their funds in the company also expect a fair return on their investments. Profitability is the measure of efficiency and the search for it provides an incentive in a achieve efficiency. On the other hand. Profitability is also important to measure the firm’s ability to pay debt and servicing. Thus both these groups are interested in the higher profitability of the concern. This factor should be kept in mind while production department requests for funds for new capital investment. Operating ratio. Profitability ratios can be determined on the basis of either sales or investment. Higher the ratio. 12 . This ratio measures the efficiency and profit earning capacity of the firm. 2. A low ratio is indicatives of the poor utilization of the existing plant capacity. The profitability ratios in relative to sales are 1. shareholder. PROFIBILITY RATIOS The management is eager to have and measure the operating efficiency of the concern to show how best it has managed the financial resources of the concern. Profitability also indicates public acceptance of the product the company is producing and the company itself and shows that the firm can produce competitively.

A relatively low margin is certainly a danger signal. A higher ratio may be increase the selling prices of goods sold without any corresponding increase in the cost of goods sold. The rated is calculated by dividing the gross profit by sales. Gross profit ratio: Gross Profit Ratio = Gross Profit ÷ Sales × 100. warranting a careful and detailed analysis of the factors responsible for it. the ratio establishes relationship of gross profit with sales to measure the operating efficiency of the firm and to reflect its pricing policy.4.1. 13 . The gross profit ratio should remain the same form year to year. because cost of sales will normally vary directly and in the same proportion with sale. Gross profit shows the gap between revenue and trading costs. Any change in any of these factors would affect the gross profit to sales ratio. A high ratio is an indication of good management or a high selling price of the product or low cost or production. It is useful as a test of profitability and management efficiency. This gross profit ratio is also known as gross margin ratio. Higher ratio is better. sales volume and costs. Gross profit is the result of relationship between prices.

2. × 100 Net Sale These ratios are shown in relation to the percentage of net sale. selling 14 . The most important operating ratio is the ratios of cost of sale to net sale. It can be used as a test of financial condition after considering other revenues and expenses operating expenses include administration expenses. Operating Ratio: Cost of Goods Sold + Operating Exp. It is fairly good index of operating efficiency. 4. expenses. manufacturing expenses.A lower gross profit is very low it may be an indicator of lower and poor profitability.

OBJECTIVES A Ratio Analysis is done for the following purpose 1. 2. 15 . To Measure Financial Solvency: Ratios are useful tools in the hands of management and other concerned to evaluate the firms performance over a period of time by comparing the present ratio with the past ones. To Measure General Efficiency: Ratios enable the mass of accounting data to be summarized and simplified. They point out firm’s liquidity position to meet its short term obligation and long term solvency. They act as an index of the efficiency of the firm. As such they serve an instrument of management control.

To Forecast and Planning: Ratio analysis is an invaluable aid to management in the discharged of its basic function planning forecasting. Thus it helps the management to take corrective action. To Make Inter Firm Comparison: It is an instrument for diagnosis of financial of an enterprise. It facilitates the managements to know whether the 16 . corrective action can be initiated. 4. the ratio that are derived after analyzing and securitizing the past result. To Facilitate Decision Making: It throws lights on the degree of efficiency of the management and utilization of the assets and that it why it is called survey of efficiency. 6. They highlight the factors associated with successful and unsuccessful firms. control etc. They help management in decision making. To Take Corrective Action: Ratio analysis provides inter firm comparison. help the management to prepare budgets to formulate policies and prepare the future plan of action etc.3. If comparison shows an unfavorable variance. 5.

SCOPES 1. Ratio analysis helps in assessment of liquidity. It provides basis not only for intra firm comparison but also for inter firm comparison. 17 . Rations indicate trends which will help in decision making and forecasting. 3. 4. Comparison of actual ratios with base year ratios or standard ratios will help the management in controlling the affair of the firm. 2. 6.firm’s financial position is improving or deteriorating by setting a trend with the help of ratios. It indicates the overall operating efficiency and performance of the firm. It helps in understanding the financial statement. 5. profitability and solvency of the firm.

Hence it plays a vital role in the completion of the project. Primary data: Primary source of information were not their as the company is not situated in Nagpur therefore the first hand information about the company not possible. 1. tools and techniques used for research are known as research methodology. Secondary data: The major source of secondary information was financial statement of hero Honda company limited annual report of the balance sheet and its website. 2. It is the path adopted by the researcher to complete research project. Source of information: There are two sources by which information was collected.RESEARCH METHODOLOGY The different type of methods. 18 .

Company Profile The joint venture between India's Hero Group and Honda Motor Company.Forget it' campaign captured the imagination of commuters across India. These are almost as many as the number of people in Finland. The company introduced new generation motorcycles that set industry benchmarks for fuel thrift and low emission. Ireland and Sweden put together! 19 . Hero Honda became the first company in India to prove that it was possible to drive a vehicle without polluting the roads.Shut it . During the 80s. and Hero Honda sold millions of bikes purely on the commitment of increased mileage.HYPOTHESIS This study has been taken to prove that • • The financial condition of the Hero Honda Company is good. Japan has not only created the world's single largest two wheeler company but also one of the most successful joint ventures worldwide. The financial health can be determined by the ratio analysis. A legendary 'Fill it . Over 20 million Hero Honda two wheelers tread Indian roads today.

someone in India buys Hero Honda's top -selling motorcycle – Splendor. the company sold half a million two wheelers in a single month—a feat unparalleled in global automotive history. Sunil Kant Munjal Mr. Toshiaki Nakagawa Mr. every second motorcycle sold in the country is a Hero Honda. Sumihisa Fukuda Mr. Satoshi Matsuzawa (Alternate Director to Mr. Masahiro Takedagawa Managing Director & CEO Joint Managing Director Technical Director Non-executive Director Non-executive Director Non-executive Director 8 Mr. and today. BOARD OF DIRECTORS No. Every 30 seconds. Brijmohan Lall Munjal Chairman & Whole-time Director Mr. Pawan Munjal Mr. 1 2 3 4 5 6 7 Name of the Directors Designation Mr. This festive season. Takashi Nagai) Non-executive Director 9 Mr.Hero Honda has consistently grown at double digits since inception. Om Prakash Munjal Mr. Pradeep Dinodia Non-executive & Independent Director 20 .

Sunil Bharti Mittal Mr. Meleveetil Damodaran Non-executive & Independent Director Non-executive & Independent Director Non-executive & Independent Director Non-executive & Independent Director Non-executive & Independent Director 21 . Shobhana Bhartia Mr.10 Gen. Pritam Singh Ms.) Ved Prakash Non-executive & Independent Director Malik 11 12 13 14 15. (Retd. Analjit Singh Dr. Mr.

The rest is history.1 Two Wheeler Company. he added a second crucial chapter . He is a man who started small. Around the time when the freedom movement in India was taking shape in the late 1920s. 22 . Instinctive from a young age. when he and his brothers relocated to Ludhiana.ABOUT THE CHAIRMAN Brijmohan Lall Munjal – Seeding a Dream "Don't dream if you can't fulfill your dreams'' Brijmohan Lall Munjal is often fond of saying. He was only six years old then. The founder and patriarch of the \$ 2. Brijmohan Lall made a rather unusual start in life. Three decades later. he walked into a newly opened Gurukul (Indian heritage school) near his home in Kamalia (now in Pakistan). Brijmohan began his business story after partition in 1947. Thus began an extraordinary tale of courage and perseverance. as India evolved. The family set up a company that provided poor people with basic transport (cycles).which visualized affordable and technologically superior transport to millions of middle class Indians. dreamt big and used a combination of grit and perseverance to create one of the country's largest corporate groups and the World's No.8 billion Hero Group is your classic first generation entrepreneur.

NDTV “Viewers’ Choice Award” to Hunk in Bike category India Times Mindscape and Seville Row (A Forbes Group Venture) Loyalty Awards . Top Gear Design Awards 2008 .AWARDS: • • Awards & Recognitions2008NDTV Profit Business Leadership Award 2008 .Hero Honda Wins the Coveted "NDTV Profit Business Leadership Award 2008“.Best Customer Loyalty Program in Automobile Category NDTV Profit Car India & Bike India Awards .Bike Manufacturer of the year Overdrive Magazine .“Customer and Brand Loyalty Award” in Automobile (two-wheeler) sector Asian Retail Congress Award for Retail Excellence (Strategies and Solutions of business innovation and Transformation) .Bike Manufacturer of the year TNS Voice • • • • • • • • • • • • • • 23 .Hunk Bike of the Year Award NDTV Profit Car India & Bike India Awards .

"Bike of the Year" . 2006 No.1 standard motorcycle CD Deluxe No. 1 in automobile industry by TNS Corporate Social Responsibility Award.1 executive motorcycle Splendor NXG No.Glamour PGM FI.CBZ X-tremens (up to 150 cc Category) 3. • • • • • • • • • • • • • • 24 . Hero Honda Splendor rated as India's most Preferred two-wheeler brand at the Awaaz Consumer Awards 2006. premium motorcycle CBZ Extreme 2007The NDTV Profit Car India & Bike India Awards 2007 in The following category: 1."Bike Technology of the Year" .• Of the Customer Awards: No.Overall "Bike of the Year" .CBZ Extreme 2.

DATA ANALYSIS LIQUIDITY RATIO: 1) Current Ratio 2) Acid test Ratio or Quick Ratio LEVERAGE RATIO: 1) Debt equity ratio 2) Proprietary ratio ACIVITY RATIO: 1) Fixed asset turnover ratio 2) Inventory turnover ratio 25 .

56 26 .46 2008 0.48 2007 0. CURRENT RATIO: 2009 0.PROFITABILITY RATIO: 1) Gross profit ratio 2) Operating ratio 1.

2.39 27 .31 2008 0.31 2007 0. The company should increase the current assets and decrease the current liabilities. QUICK RATIO: 2009 0.Interpretation: The liquidity position of the company is not satisfactory because it is not reached the ideal ratio 2:1.

06 28 .02 2008 0. 3.Interpretation: The liquidity position of the company is not satisfactory because the ratio is decrease and not reached the ideal ratio 1:1 the company should increase quick assets such as cash and bank balance and decrease the current liabilities. Debt Equity Ratio: 2009 0.04 2007 0.

89 29 . 4.Interpretation: The solvency position of the company is satisfactory but it should decrease the loans such as secured and unsecured. It should increase the reserves and share capital also.87 2007 0. Proprietary Ratio: 2009 0.83 2008 0.

53 2008 42. Inventory Turnover Ratio: 2009 47.53 30 .Interpretation: This ratio is the indicative of strong financial position of business. the better it is but the company should increase the shareholders funds. The higher the ratio.82 2007 47. 5.

01 31 . 6.89 2007 6.Interpretation: The company should control the inventory turnover because it is fluctuating. Fixed Assets Turn Over Ratio: 2009 5.34 2008 5.

Interpretation: The ratio is decreasing from year to year and we should increase the sales up to the maximum level and we should use the fixed assets up to full 100% capacity.67% 2007 10.75% 2008 11. 7. Gross Profit Ratio: 2009 12.72% 32 .

22% 2007 12.Interpretation: The profitability position of the company is satisfactory because of the Gross profit ratio is increasing from year to year but it is not enough.13% 33 . Operating Ratio: 2009 14. 8.22% 2008 13. The company should control the cost of goods sold expenses and increase the sales.

Source of information: 34 . tools and techniques used for research are known as research methodology. RESEARCH METHODOLOGY The different type of methods.Interpretation: The company had controlled the operating expenses that’s Why the ratio is decreased. It is the path adopted by the researcher to complete research project. Hence it plays a vital role in the completion of the project. the lower the ratio the better it is. the company should continue this performance in the future also. It is satisfactory.

Secondary data: The major source of secondary information was financial statement of hero Honda company limited annual report of the balance sheet and its website. Changes in the accounting practice between the two years may render the comparison difficult. 35 . They are suffering from various limitations. It is because ratios are simple and easy to understand. LIMITATIONS OF RATIO ANALYSIS Ratio analysis is as already mentioned a widely used tool of financial analysis. Primary data: Primary source of information were not their as the company is not situated in Nagpur therefore the first hand information about the company not possible.There are two sources by which information was collected. 1. 1. 2. But they must be used very carefully.

The current economic conditions are also ignored.2. It is not possible to suggest absolute ratios for a 3. Ratio analysis is one of the many techniques of analysis and interpretation. Thus while attempting to draw any conclusion on this basis other techniques should also be used. But qualitative information may be more important. firm. 4. 5. Ratios are simply means and not end in themselves but they are means to achieve a particular end. Ratios indicate quantitative information for decision making. CONCLUSION After analyzing and interpreting the whole financial statement of hero Honda company for three years 2007 to2009 and on the basis of annual reports the researcher have arrived following result: 36 . Ratios are calculated from past financial statement and they do not indicate future trend.

which is positive sign for the company. The overall profitability of the company is satisfactory during the study period. 37 . 4. activity and profitability ratio. Leverage ratio: The leverage position of the company is good in short term as well as in long term position of the company due to debt equity ratio and proprietary ratio in previous year. Liquidity ratio: The current ratio is slightly lower than the ideal ratio. Activity ratio: The increasing inventory turnover ratio and fixed turnover ratio highlights the overall efficiency of the business activities and management in making productive utilization of assets and capital of the company so that there is better profitability during the period. It shows the company’s ability to meet its current requirement. In overall the liquidity position of the company is good which shows the managerial efficiency in utilizing current assets in the business. liquidity. 3.1. Profitability ratio: The gross profit of the company is increasing. Therefore the overall financial position of the company is good on the basis of leverage. 2.

38 .RECOMMENDATION After analysis and interpretation of the financial statement of hero Honda company the following are the suggestions for the betterment of company.

Increasing these ratios will definitely help the market share price to shoot up.K. 5. KHAN and P.Y. 4. The company should minimize external financing to lower the interest burden which will help to enhance the shareholder ability to earn and will lower the risk for them. The company should utilize the reserve account in the form of dividend and bonus so that it will increase the marketing value of the company. The company should try and increase its dividend payout ratio to the shareholder. JAIN WEBSITE: 39 . As the liquidity position of the company is less than the ideal ratio so the company should think on that.S. 3.N. BIBLIOGRAPHY BOOKS: Management accounting – R. 2. PILLAI and BAGAVATHI Financial management – M. Fixed assets of company should be improved because return gain on the assets is lower so improvement on assets will improve its position. 6. The company should increase there current assets and decrease current liability because there current liability is more.1.

com Hero Honda.Google search.com ANNEXURE Profit & Loss Account (Rs in Crore) Mar ' 09 Income Mar ' 08 Mar ' 07 40 .

303.820.282. 10.8 2 13.16 293.47 160.48 2.78 1.345. 38 01 95 8.21 743.1 840. 0 360.5 7.8 69 13.325.43 8 113. 8 13.479.367.65 582.7 7 94 339. 15 388.72 10.753.89 6 3.62 250.95 - 8 3 499.5 1.87 2.73 1.281.861. 78 41 .45 1.118.2 8 6 379.6 2.703.252.285.78 448.32 1.81 507.47 57.85 83.01 8.684.081.6 1.Mar ' Mar ' Mar ' Operating income Expenses Material consumed Manufacturing expenses Personnel expenses Selling expenses Administrative expenses Expenses capitalized Cost of sales Operating profit Other recurring income Adjusted PBDIT Financial expenses Depreciation Other write offs Adjusted PBT Tax charges Adjusted PAT Nonrecurring items Other non cash adjustments Reported net profit Earnings before appropriation Equity dividend Preference dividend Dividend tax Retained earnings 09 08 07 12.56 88.456. 36 4 99 1.00 8.41 64.977.7 - 967.66 383.76 139.2 46 332.5 2.201.40 1.38 67.168.94 113.69 1. 5 427. 9.62 353.836. 3 399.562.04 180.132.0 1.70 442.7 1.10 258.66 1.572.45 503.667.0 7.905.58 127.88 857. 2 7 96 108.

94 3.430. 81 39.3 2.760.Balance sheet (Rs Crore) Mar ' 09 Sources of funds Owner's fund Equity share capital Share application money Preference share capital Reserves & surplus Loan funds 39.12 0 Mar ' 08 Mar ' 07 42 .946.94 2.94 39.

17 3.37 165.118.10 1.53 71 6 120. 3.156.955.3 -694.59 1996.022.973.23 24 4 2.92 3. 2.20 157.8 8 1. 1.52 635.3 1. 1.165.65 14 2.938.635.Mar ' 09 Secured loans Unsecured loans Total Uses of funds Fixed assets Gross block Less : revaluation reserve Less : accumulated depreciation Net block Capital work-in-progress Investments Net current assets Current assets.55 100. 3.74 90 3 1.85 56. 2.635.879.7 27 942. 1.183.608.566. loans & advances Less : current liabilities & provisions 1.49 132.6 14 40. 1.368.23 24 4 Total net current assets Miscellaneous expenses not written Total Notes: Book value of unquoted investments Market value of quoted investments Contingent liabilities Number of equity shares outstanding (Lacs) 3.118.54 408.56 1.2 2.305.205.49 189.8 1996.12 2 209.879.357.09 76 3 3.2 1.63 8 782.516.88 8 43 .809.00 914.573.2 2.8 1. Mar ' 08 Mar ' 07 78.800.00 165.87 75 2 942.54 1996.013.

Mar ' 09 Mar ' 08 Mar ' 07 44 .