2012

A Project Report on Ratio

Analysis with reference to
Genting Lanco Power Ltd.

YOUR NAME

7/10/2012
 PROJECT REPORT ON

“WORKING CAPITAL MANAGEMENT

MANAGEMENT and ITS 
 APPRAISAL”
With Special Reference To  SINTECH PRECISION 
 PRODUCT LIMITED.

 SESSION : 2014-201 

SUBMITTED TO

 P!. "a#a$a%&a& N'$%( In)!*!(!' +, ()*n'))

 Mana'/'n!Ua*n

 SUMITTED :

Na!an "#$!ani

%C&NOW'ED(EMENT

2
 I would like to express my hert!ul th"ks to m"y people#
$his disserttio" is " e!!ort to %o"tri&ute towrds %hie'i"( the
desire
desired
d o&)e%t
o&)e%ti'e
i'es#
s# I" doi"(
doi"( so* I h'e
h'e optimi
optimi+ed
+ed ll 'il
'il&le
&le
resour%es "d mde use o! some exter"l resour%es* the i"terply
o! whi%h* o'er  period o! time* led to the tti"me"t o! the set
(ols#
I tke here  (ret opportu"ity to express my si"%ere "d
deep se"se o! (rtitude to my esteemed !%ulty mem&ers o! , PT
Ja)aharlal Nehr# In*tit#te Of B#*ine** Mana+e!ent , -i$ra!
Uni.er*it/, Uain  !or (i'i"( me " opportu"ity to work o" this
 pro)e%t# $he support - (uid"%e !rom sir* ws o! (ret help - it
ws extremely 'lu&le#
I lso express my si"%ere th"ks to ll
the people who* dire%tly or i"dire%tly* %o"tri&uted i" time* e"er(y
"d k"owled(e to this e!!ort.

Na!an "#$!ani

.
 DEC'%R%TION

I Nm" ukm"i here&y de%lre tht this pro)e%t is the

re%ord o! uthe"ti% work %rried out &y me duri"( the %demi%
yer
yer 201
01
  20
201
1 "d
"d hs "ot &ee"
ee" su
su&m
&mit
itte
ted
d to "y
"y othe
other 
r 
U"i'ersity or I"stitute towrds the wrd o! "y de(ree#

I !urther de%lre tht i" the e'e"t o! "y

i"!ri"(eme"t whether k"owi"(ly or u"k"owi"(ly the U"i'ersity

shll "ot &e li&le !or the sme i" "y m""er wht so e'er #

D%TE / / Si+nat#re of the *t#ent

3
Chapt
er–1

I
NTRODUCTI
ON


Intro#ction

3inancial Mana+e!ent  is the spe%i!i% re o! !i""%e deli"(

with the !i""%il de%isio" %orportio"s mke* "d the tools "d "lysis
used to mke the de%isio"s# $he dis%ipli"e s  whole my &e di'ided
 &etwee" lo"(4term "d short4term de%isio"s "d te%h"i5ues# 6oth shre the
sme (ol o! e"h"%i"( !irm 'lue &y e"suri"( tht retur" o" %pitl ex%eeds
%ost o! %pitl* without tki"( ex%essi'e !i""%il risks#

Ca3*!a& *n')!/'n! d'5*)*+n) %omprise the lo"(4term %hoi%es

&out whi%h pro)e%ts re%ei'e i"'estme"t* whether to !i""%e tht i"'estme"t
with e5uity or de&t* "d whe" or whether to py di'ide"ds to shreholders#
hort4term %orporte !i""%e de%isio"s re %lled working capital 
management  "d del with &l"%e o! %urre"t ssets "d %urre"t li&ilities &y
m"(i"( %sh* i"'e"tories* "d short4term &orrowi"(s "d le"di"( 8e#(#* the
%redit terms exte"ded to %ustomers9#

:orporte !i""%e is %losely relted to m"(eril !i""%e*

whi%h is sli(htly &roder i" s%ope* des%ri&i"( the !i""%il te%h"i5ues
'il&le to ll !orms o! &usi"ess e"terprise* %orporte or "ot#


Role of 3inancial Mana+er* ;

$he role o!  !i""%il m"(er %" &e dis%ussed u"der the

!ollowi"( heds;

1# Nture o! work 

2# <orki"( %o"ditio"s

.# Employme"t

3# $ri"i"(* Other 5uli!i%tio"s "d Ad'"%eme"t

# =o& outlook 

# Er"i"(s

7# Relted o%%uptio"s

 >et us dis%uss e%h o! these i"  detiled m""er#

7
 NEED O3 T"E STUD4

1# $he study hs (ret si("i!i%"%e "d pro'ides &e"e!its to

'rious prties whom dire%tly or i"dire%tly i"ter%t with the %omp"y#

2# It is &e
&e"e!i%il to m
m"(eme"t o! th
the %om
%omp"y &y
&y pr
pro'idi"(
%rys
%ryst
tll %le
%lerr pi%t
pi%tur
uree re(
re(rd
rdi"
i"(
( impo
import
rt"
"tt spe
spe%t
%tss like
like li5u
li5uid
idit
ity
y*
le'er(e* %ti'ity "d pro!it&ility#

.# $he st
study is
is l
lso &e
&e"e!i%il to
to em
employees "
"d o!
o!!ers mo
moti'tio"
 &y showi"(
showi"( how %ti'ely
%ti'ely they re
re %o"tri&uti"(
%o"tri&uti"( !or %omp"y?s
%omp"y?s (rowth#
(rowth#

3# $he i"
i"'est
estors wh
who r
re i"
i"terested i"
i" i"
i"'esti"( i"
i" th
the %o
%omp"y?s
shres will lso (et &e"e!ited &y (oi"( throu(h the study "d %"
esil
esily
y tke
tke  de%i
de%isi
sio"
o" whet
whethe
herr to i"'e
i"'est
st or "o
"ott to i"'e
i"'est
st i" the
the
%omp"y?s shres#

@
 OBJECTI-ES

$he m)or o&)e%ti'es o! the rese"t study re to k"ow &out

!i""%il stre"(ths "d wek"ess o! >AN:O throu(h 3IN%NCI%' R%TIO
%N%'4SIS #

The !ain o5ecti.e* of re*ent *t#/ ai!e a* ;

$o e'lute the per!orm"%e o! the %omp"y &y usi"( rtios s

 yrdsti%k to mesure the e!!i%ie"%y o! the %omp"y# $o u"derst"d the
li5uidity* pro!it&ility "d e!!i%ie"%y positio"s o! the %omp"y duri"( the
stud
study
y peri
period
od## $o e'l
e'lu
ute
te "d
"d "l
"ly+
y+ee 'ri
'riou
ouss !%t
!%tss o! the
the !i"
!i""%
"%i
ill
 per!orm"%e o! the %omp"y#
%omp"y# $o mke %ompriso"s
%ompriso"s &etwee" the rtios
duri"( di!!ere"t periods#

OBJECTI-ES

1# $o study the prese"t !i""%il system t e"ti"(

>"%o#

2# $o determi"e the Bro!it&ility* >i5uidity Rtios#

.# $o "ly+e the %pitl stru%ture o! the %omp"y

with the help o! >e'er(e rtio#

3# $o o!!er p
pproprite su
su((estio"s !o
!or th
the &e
&etter  
 per!orm"%e o!
o! the or("i+tio"
or("i+tio"

C
 MET"ODO'O(4

$he i"!ormtio" is %olle%ted throu(h se%o"dry sour%es duri"(

the pro)
pro)e%t
e%t## $h
$ht
t i"!o
i"!orm
rmtio
tio"
" ws utili
utili+ed
+ed !or
!or %l%ul
%l%ulti
ti"(
"( per!o
per!orm
rm"%
"%ee
e'lutio" "d &sed o" tht* i"terprettio"s were mde#

So#rce* of *econar/ ata

1# Most o!
o! th
the %
%l%ultio"s r
re m
mde o"
o" th
the !i
!i""%il st
stteme
eme"ts o! 
o! 
the %omp"y pro'ided stteme"ts#

2# Re!erri"( st
st"drd te
texts "d
"d re
re!erred &o
&ooks %ol
%olle%ted som
some o! 
the i"!ormtio" re(rdi"( theoreti%l spe%ts#

.# Method4 to
to s
ssess th
the pe
per!orm"%e o!
o! he
he %o
%omp"y me
method o! 
o! 
o&ser'tio" o! the work i" !i""%e deprtme"t i" !ollowed#

10
 'IMIT%TIONS

1# $hee study pro'

$h ro'ides " i"si(h
i(ht i"t
i"to the !i""%i
"%il
l** pers
erso""el*
el*
mrketi"( "d other spe%ts o! >AN:O# E'ery study will &e &ou"d
with %erti" limittio"s#
limittio"s#

2# $he &e
&elow me"
me"ttio"ed r
re th
the %o
%o"stri"ts u"
u"der wh
whi%h th
the st
study
is %rried out#

.# O"e
O"e o! the
the !%to
%torrs o! the study ws l%k
%k o! 'i
'ill&il
&ilit
ity
y o! mp
mple
i"!ormtio"# Most o! the i"!ormtio" hs &ee" kept %o"!ide"til "d
s su%h s "ot ssed s rt o! poli%y o! %omp"y#

$ime is " imp

import"
t"t lim
limitt
ittiio"# $he whole
ole stud
tudy ws
%o"du%ted i"  period o! 0 dys* whi%h is "ot su!!i%ie"t to %rry out proper 
i"terprettio" "d "lysis#

11
C$a3!'% 6 2

POWER  INDUSTR4

12
 INDUSTR4 PRO3I'E

E>E:$RI:I$Y is o"e o! the 'itl re5uireme"ts i" the o'er ll

de'elopme"t o! the e%o"omy "d is there!ore* ppropritely %lled the
6Wheel of De.elop!ent7# I" !%t* the power se%tor hs plyed  domi""t
role i" the so%io4e%o"omi% de'elopme"t o! the %ou"ty# As  %o"'e"ie"t
'erstile "d relti'ely %hep !orm o! e"er(y it plys  %ru%il role i"
(ri%ulture* tr"sport* i"dustry "d domesti% se%tor# e"%e power hs ll
lo"( remi"ed i" the priority list o! I"di" pl""ers "d pl" outlys h'e
re!le%ted this spe%t# $he outlys !or power se%tor h'e &ee" rou"d 1CD o! 
the totl outlys !or the pu&li% se%tor i" 'rious pl" periods#

$here hs &ee"  spe%t%ulr i"%rese i" the i"stlled (e"erti"(

%p%ity o! ele%tri%ity i" the %ou"try# trti"( with  %p%ity o! &out
1.0M< t the time o! i"depe"de"%e*

espite treme"dous i"%rese i" the 'il&ility o! power si"%e

i"depe"de"%e there is %ute power short(e (p &etwee" dem"d "d
supply# $he per %pit %o"sumptio" o! power i" the %ou"try is 'ery low s
%ompred to the positio" i" the de'eloped %ou"tries# Bower is  key i"put !or 
e%o"omi% (rowth hs s dire%t reltio"ship with the "tio"l produ%ti'ity s
lso the o'erll e%o"omy o! the %ou"try#

$here hs &ee" di'ersi!i%tio" o! the sour%es o! (e"ertio" i"

terms o! hydel* therml "d "u%ler sour%es# $he shre o! hydel i" the totl
(e"erti"( %p%ity hd drsti%lly %ome dow" "d tht o! therml hd
show" "oti%e&le i"%rese# A"other si("i!i%"t %h"(e is the i"%resi"(
shre o! :e"trl se%tors i" re%e"t yers#

1.
 $he shre o! the therml eleme"t i" the i"stlled (e"erti"(
%p%ity* whi%h is lso predomi""tly %ol4&sed* shows  stedy i"%rese#
$hus* the relti'ely %heper "d  more desir&le %h"(e i" terms o!  hi(her 
shre o! hydel sour%e* whi%h is re"ew&le* h'e "ot mterili+ed#

POWER SCEN%RIO

$he power se%tor is t %ross rods tody# $here is  %hro"i%

 power short(e i" the %ou"try mi"ly ttri&ut&le to dem"d o! power 
%o"ti"uously outstrippi"( the supply#

"4DE' POWER 

I" the prese"t (lo&l e"er(y %o"text* there re %erti" spe%ts*
whi%h h'e %5uired  "ew si("i!i%"%e# $he de'elopme"t o! hydropower 
hs to &e (i'e"  m)or thrust i" the %urre"t de%de# <e still h'e lr(e
u"tpped hydro power pote"til* &ut its de'elopme"t hs slowed dow" o"
%%ou"t o! l%k o! !i""%il resour%es* i"terstte ri'lry* i"e!!i%ie"%y o! 
%erti" stte ele%tri%ity &ords* 'ritio"s i" the %ourse o! the mo"soo"s et%#
 %o"%erted e!!ort is imperti'e to o'er%ome the hurdles "d e"lr(e the
shre o! the hydro power (e"ertio" i" the %ou"try# $his will help "ot o"ly i"
tppi"(  re"ew&le resour%e o! e"er(y* &ut will pro'ide esse"tilly "eeded
 peki"( support to therml power (e"ertio" with the ptter" o! dem"d !or 
ele%tri%ity# i"%e the pl""ers? i"itil e"thusism &out the lr(e hydel
 pro)e%ts hs w"ed somewht* I"di will do well to tke re%ourse to the
:hi"ese ptter" o! mi%ro "d mi"i hydel pro)e%ts where'er the terri" is
suit&le#

13
MINI "4DE' P'%NTS

$here re  "um&er o! sttes i" the :ou"try where mi"i hydel
 pro)e%ts %" &e set up t %omprti'ely lower i"'estme"ts to suppleme"t
other sour%es o! e"er(y# A%%ordi"( to reli&le estimtes the totl pote"til o! 
mi"i4hydel pl"ts ll o'er the %ou"try is rou"d 000M<# $his i"%ludes
2*000M< i" hilly res t ,hi(h heds "d low dis%hr(eF poi"ts "d
.00M< t ,low heds "d low is%hr(eF poi"ts# Brti%ulr drops "d
irri(tio" systems#

T"ERM%' POWER

$herml u"its h'e emer(ed s the lr(est sour%e o! power i"

I"di# 6ut u"!ortu"tely* the pro(ress o! power (e"ertio" i" this se%tor hs
"ot &ee" mrked &y "y "ew &rekthrou(h# At prese"t stress %o"ti"ues to &e
lid o" therml power sttio" &e%use o! shorter %o"stru%tio" time# Usi"(
 &etter pro)e%t m"(eme"t te%h"i5ues is shorte"i"( the %o"stru%tio" period
!or these pl"ts# It hs &ee" possi&le to impro'e o'erll e!!i%ie"%y o! therml
 pl"t &y usi"( (s tur&i"es i" %o")u"%tio" with %o"'e"tio"l stem tur&i"es#

$he u"io" (o'er"me"t hs* i" order to step up %e"trl

(e"ertio" i" the %ou"try* est&lished super therml power ttio" i"
di!!ere"t re(io"s# $he Ntio"l $herml power :orportio" 8N$B:9 ws
est&lished i" 1C7 with the o&)e%t o! pl""i"(* promoti"( "d or("i+i"(
i"te(rted de'elopme"t o! therml power i" the %ou"try#

1
(EO POWER S4STEM

eo Bower ystem is  "turl ir4%o"ditio"i"( system !or 

reside"til "d %ommer%il premises* usi"( (eotherml e"er(y 'il&le
 &e"eth the (rou"d sur!%e t  depth o!  meters# It is i"telli(e"tly desi("ed
to 'e"tilte the i"teriors to ll %or"ers "d to e!!e%ti'ely e"h"%e the i"ter"l
%o"ditio"s &y remo'l o! !ormldehyde whi%h is hrm!ul to o"es helth#
$his system pro'ides "turl e"'iro"me"t4like %o"ditio"s to o"esel!*
i"%reses house li!e "d prote%ts the e"'iro"me"t#

NUC'E%R ENER(4

$he pl""ers* ri(ht !rom the &e(i""i"( u"derstood the

import"%e o! "u%ler e"er(y i" meeti"( the %ou"try?s lo"(4term e"er(y
"eeds# Re%o("i+i"( tht "u%ler te%h"olo(y would &e su&)e%t to 
 pro(ressi'ely restri%ti'e te%h"olo(y %e"trl re(ime "d lso tht the lo"(
term strte(ies !or exploittio" o! the %ou"try?s 'st thorium resour%es re
 &ou"d to &e some wht di!!ere"t !rom those o! most other %ou"tries e"((ed
i" "u%ler power de'elopme"t* treme"dous emphsis ws pl%ed o"
%hie'i"( sel! reli"%e i" te%h"olo(y de'elopme"t# $his poli%y hs yielded
ri%h di'ide"ds "d tody o"e %" proudly use the reli+tio" o! i"di(e"ous
%p&ility i" ll spe%ts o! the "u%ler !uel %y%le#

OCE%N ENER(4

$he lo"( st"di"( proposl to tp "o"4%o"'e"tio"l sour%e o! 

o%e" e"er(y !or power (e"ertio" is expe%ted to (et  !illip with  )oi"t
tem o! the $mil"du ele%tri%ity 6ord "d the O%e" E"er(y :ell o! I"di"
I"stitute o! $e%h"olo(y* Mdrs %omme"di"( the o!!er o! the U## &sed

1
!irm se solr power 8B9 to set up  O%e" $herml E"er(y :o"'ersio"
8O$E:9 pl"ts o! 100 M< %p%ities e%h lo"( the $mil"du :ost !or 
serious %o"sidertio" "d re%omme"di"( the setti"( up o! o"e pl"t to &e(i"
with t Gulsekrpt"m re#

WIND ENER(4

<i"d e"er(y is !st emer(i"( s the most %ost4e!!e%ti'e sour%e

o! power s it %om&i"es the &u"d"%e o!  "turl eleme"t with moder"
te%h"olo(y# $he (rowi"( i"terest i" wi"d power te%h"olo(y %" &e ttri&uted
"ot o"ly to its %ost e!!e%ti'e"ess &ut lso to other ttr%ti'e !etures like
modulrity* short pro)e%t (esttio" "d the "o"4polluti"( "ture o! the
te%h"olo(y# I" I"di* the exer%ise to hr"ess wi"( e"er(y i"%ludes wi"d
 pumps* wi"d &ttery %hr(ers* st"d lo"e wi"d ele%tri% (e"ertors "d (rid
%o""e%ted wi"d !rms# $he deprtme"t o! "o"4%o"'e"tio"l e"er(y sour%es
8NE9 i" sso%itio" with stte (e"%ies hs &ee" respo"si&le !or %reti"(
"d susti"i"( i"terest i" the !ield#

SO'%R ENER(4

It is &elie'ed tht with )ust 0#1 per %e"t o! the 7*000 trillio"
k+ o! solr e"er(y tht re%hes the erth* pl"et?s e"er(y re5uireme"t %"
 &e stis!ied# Ele%tri%ity %" &e (e"erted with the help o! solr e"er(y
throu(h the solr therml route* s well s dire%tly !rom su"li(ht with the
help o! olr BhotoHolti% 8BH9 te%h"olo(y# BH ystems re &ei"( used
!or li(hti"(* wter pumpi"(* "d tele%ommu"i%tio"s "d lso !or 'ill(e

17
si+e power pl"ts i" rurl res# BH systems re &ei"( used to pro'ide
li(hti"( u"der the Ntio"l >iter%y missio"* re!ri(ertio" !or '%%i"e
stor(e "d tr"sport u"der the Ntio"l immu"i+tio" pro(rmme* dri"ki"(
wter "d power !or tele%ommu"i%tio"s# I"di" rilwys h'e &ee" usi"(
this te%h"olo(y !or si("li"(#

PROB'EMS

$he power se%tor i" I"di is &eset with  "um&er o! pro&lems#

$hey relte to delys i" the !ormultio" "d impleme"ttio" o! 'rious
 pro)e%ts* poor utili+tio" o! %p%ity* &ottle"e%ks i" the supply o! %ol to
therml sttio"* "d its poor 5ulity* !ulty distri&utio" "d tr"smissio"
rr"(eme"ts "d &d pl""i"( ledi"( to " i")udi%ious hydel therml mix#
E%olo(i%l pro&lems re lso 'exi"( this se%tor#

urdles i" e"'iro"me"tl %ler"%es te"d to slow dow"

%ompletio" o! power pro)e%ts# :ompe"story !!oresttio" "d l"d
%5uisitio" h'e pro'ed to &e m)or &ottle"e%ks i" the %ler"%e o! power 
 pro)e%ts# $he mi" pro&lem !%ed i" the %se o! e"'iro"me"tl %ler"%es is
the short(e o! l"d !or %ompe"story !!oresttio"# <hile pro)e%t
uthorities re prepred to i"'est !u"ds i" !!oresttio" l"d* the stte
(o'er"me"ts re "ot &le to pro'ide the re5uired l"d# $he o'er"me"t hs
 proposed to set up  tsk !or%e to look i"to %ler"%es !or power pro)e%ts "d
speed up the %ler"%es#

1@
C$a3!'% 6 7

O8ER8IEW O9 

'%NCO (ROUP

1C
 PRO3I'E O3 (ENTIN( '%NCO POWER  8INDI%9 PRI-%TE
'IMITED
8OPER%TIONS : M%INTEN%NCE COMP%N4 3OR  '%NCO
& OND%P%''I POWER  PRI-%TE 'IMITED9

e"ti"( >"%o Bower 8I"di9 Bri'te >imited is  su&sidiry o! 

e"ti"( (roup o! %omp"ies &sed t Gul >umpur* Mlysi# e"ti"(
(roup hs its prese"%e i" di'ersi!ied !ields like Bower* Bl"ttio"s* Bper -
B%k(i"(* E"terti"me"t* Resorts - otels* Broperty de'elopme"t* :ruise
li"ers* e :ommer%e* Oil "d s#

e"ti"( (roup is Mlysi?s ledi"( multi"tio"l %orportio"

"d o"e o! Asi?s &est4m"(ed %omp"ies with o'er .*000 employees
(lo&lly# $he (roup is re"ow"ed !or its stro"( m"(eme"t ledership*
!i""%il prude"%e "d sou"d i"'estme"t dis%ipli"e#

$he %om&i"ed mrket %pitli+tio" o! the (roup is &out

U C &illio"# $he operti"( re'e"ue !or the (roup !or the yer 2007 is
U 1#. &illio"#

e"ti"( >"%o Bower 8I"di9 Bri'te >imited hs e"tered i" to

 1 yers Opertio"s "d Mi"te""%e A(reeme"t with >"%o Go"dplli
Bower Bri'te >imited* who re the ow"ers o! the .@ M< (s !ired
%om&i"ed %y%le power pl"t t ko"dplli#

e"ti"( >"%o Bower 8I"di9 Bri'te >imited hs its re(istered

o!!i%e t >"%o Go"dplli Bower Bl"t* Go"dplli IA* "d Grish"
istri%t#

20
 '%NCO (ROUP PRO3I'E

>AN:O roup* hed5urtered i" yder&d* I"di is o"e o! 

the ledi"( &usi"ess houses i" outh I"di# It hs " sset &se o! U  30
millio" "d  tur"o'er o! more th" U  .00 millio"# <ith opertio"l
experie"%e i" power pl"ts &sed o" s* 6iomss "d <i"d "d "
operti"( %p%ity o! 0C M<* >AN:O is hedi"( !or  %p%ity o! 200
M< "d " sset &se o! U  2# &illio" &y the yer 2010#

>"%o is  well4di'ersi!ied (roup with %ti'ities like power 

(e"ertio"* e"(i"eeri"( "d %o"stru%tio"* m"u!%turi"(* I"!ormtio"
te%h"olo(y 8I$9* "d property de'elopme"t# >"%o (roup is stri'i"( to
Empower* E"&le "d E"ri%h prt"er* &usi"ess sso%ites "d to &e the
%hose" 'ehi%le !or (rowth !or stkeholders "d sour%e o! i"spirtio" to the
so%iety# $he (roup is re%o("i+ed s  ledi"( plyer i" the I"di" e%o"omi%
s%e"rio with opertio" i" UA "d UG# >AN:O lso hs prese"%e i" :i'il
:o"stru%tio"* Broperty e'elopme"t* M"u!%turi"( o! Bi( Iro" - u%tile
Iro" pu" Bipes "d I"!ormtio" $e%h"olo(y# >AN:O?s o'erll (rowth is
ttri&uted to its te%h"i%l* :ommer%il "d m"(eril skills* whi%h is
ppre%ited &y its I"ter"tio"l prt"ers  :ommo"welth e'elopme"t
:orportio" 8A:$I/lo&ules9 o! the U"ited Gi"(dom* e"ti"( roup o! 
Mlysi "d oos" o! Gore#

21
OBJECTI-ES

1# $o pro'ide &si% me"ities !or the rurl poor#

2# $o s'e rts o! histori%l rele'"%e whi%h re o" the 'er(e o! 
exti"%tio"#

.# $o de'elop i"te(rted pro(rmmes !or the di!!ere"tly &led#

3# $o e"%our(e !resh tle"t i" the re o! sports#

# $o tke up other hum"itri" %ti'ities#

# the su&st"til prt o! the power re5uireme"t#

;U%'IT4 PO'IC4

<e re %ommitted to %o"ti"ully impro'e the 5ulity o! our 

 per!orm"%e throu(h the ppli%tio" o! our Julity poli%y#

1# Utili+i"( :ommer%il* E"(i"eeri"( "d um" Resour%es* to

Mi"imi+e Risks to Berso""el* Bl"t - E5uipme"t "d Mximi+e pl"t
A'il&ility !or e"ertio" o! Bower#

2# Bro'idi"( the &est poli%ies le'el o! %ommer%il per!orm"%e !or the

 &e"e!it o! ll tke olders#

.# Impleme"ti"( prude"t utility pr%ti%es "d pro'idi"( elthy "d

Ex%elle"t <orki"( E"'iro"me"t i" ll is%ipli"es o! E"(i"eeri"( "d
6usi"ess s do%ume"ted i" the Julity ystem#

3# $reti"( ll st!! - !milies !irly "d with respe%t while e"%our(i"(
 perso""el (rowth#

22
COMP%N4 "I(" 'I("TS

1# .@#133 M< %om&i"ed %y%le power pl"t u"der &uild  operte  ow"
rr"(eme"t with the stte (o'er"me"t#
2# $he si"(le lr(est i"'estme"t i" A"dhr Brdesh* &y "y A"dhr Brdesh
 &sed (roup#
.# Bower pur%hse (reeme"t !irmed with AB $RAN:O !or 1 yers#
3# E%o  !rie"dly* dheri"( to hi(hest st"drds o! s!ety "d %o"'ersio" o! 
"turl resour%es#
# $he !irst pro)e%t %lered &y :e"trl Ele%tri%ity Authority 8:EA9 u"der the
i"ter"tio"l %ompetiti'e 6iddi"( 8I:69 route !or power pro)e%ts i" I"di#
# $he !irst o! the I:6 power pro)e%ts i" I"di to %hie'e !i""%il %losure
"d %omplete %o"stru%tio" i" shortest possi&le time#
7# O"e o! the lowest e'%utio"s %osts to AB $RAN:O#
@# $he !irst pri'te se%tor power pro)e%t to re%ei'e dis&urseme"t o! !i""%e
!rom Bower Ki""%e :orportio" limited* I"di#
C# $he shortest %o"stru%tio" time i" the pri'te se%tor
10#>o%tio" d'"t(es i"%lude;
9 Broximity to Ntio"l "d stte i(hwy
 &9 =ust 1# km !rom !uel stor(e !%ility o! i"dust" Betroleum
:orportio" limited#
%9 :lose to the ri'er Grish" "d up strem o! the Brksm
6rr(e e"suri"( pere""il wter supply#
d9 Ad)%e"t to 220 k<h u&sttio" o! AB $RAN:O#

2.
C$a3!'% 6 4

 R ATIO A NALSIS 

23
 R%TIO %N%'4SIS

3IN%NCI%' %N%'4SIS

Ki""%il "lysis is the pro%ess o! ide"ti!yi"( the !i""%il

stre"(ths "d wek"esses o! the !irm "d est&lishi"( reltio"ship &etwee"
the items o! the &l"%e sheet "d pro!it - loss %%ou"t#

Ki""%il rtio "lysis is the %l%ultio" "d %ompriso" o! 

rtios* whi%h re deri'ed !rom the i"!ormtio" i"  %omp"y?s !i""%il
stteme"ts# $he le'el "d histori%l tre"ds o! these rtios %" &e used to
mke i"!ere"%es &out  %omp"y?s !i""%il %o"ditio"* its opertio"s "d
ttr%ti'e"ess s " i"'estme"t# $he i"!ormtio" i" the stteme"ts is used &y

• $rde %reditors* to ide"ti!y the !irm?s &ility to meet their %lims i#e#
li5uidity positio" o! the %omp"y#

• I"'estors* to k"ow &out the prese"t "d !uture pro!it&ility o! the

%omp"y "d its !i""%il stru%ture#

• M"(eme"t* i" e'ery spe%t o! the !i""%il "lysis# It is the

respo"si&ility o! the m"(eme"t to mi"ti" sou"d !i""%il
%o"ditio" i" the %omp"y#

2
R%TIO %N%'4SIS

$he term ,RtioF re!ers to the "umeri%l "d 5u"titti'e

reltio"ship &etwee" two items or 'ri&les# $his reltio"ship %" &e
exposed s

• Ber%e"t(es

• Kr%tio"s

• Broportio" o! "um&ers

Rtio "lysis is de!i"ed s the systemti% use o! the rtio to

i"terpret the !i""%il stteme"ts# o tht the stre"(ths "d wek"esses o! 
!irm* s well s its histori%l per!orm"%e "d %urre"t !i""%il %o"ditio" %"
 &e determi"ed# Rtio re!le%ts  5u"titti'e reltio"ship helps to !orm 
5u"titti'e )ud(me"t#

STEPS IN R%TIO %N%'4SIS

• $he !irst tsk o! the !i""%il "lysis is to sele%t the i"!ormtio"

rele'"t to the de%isio" u"der %o"sidertio" !rom the stteme"ts "d
%l%ultes pproprite rtios#

• $o %ompre the %l%ulted rtios with the rtios o! the sme !irm
relti"( to the pst or with the i"dustry rtios# It !%ilittes i"
ssessi"( su%%ess or !ilure o! the !irm#

2
 • $hird step is to i"terprettio"* drwi"( o! i"!ere"%es "d report
writi"( %o"%lusio"s re drw" !ter %ompriso" i" the shpe o! report
or re%omme"ded %ourses o! %tio"#

B%SIS OR ST%ND%RDS O3 COMP%RISON

Rtios re relti'e !i(ures re!le%ti"( the reltio" &etwee"

'ri&les# $hey e"&le "lyst to drw %o"%lusio"s re(rdi"( !i""%il
opertio"s# $hey use o! rtios s  tool o! !i""%il "lysis i"'ol'es the
%ompriso" with relted !%ts# $his is the &sis o! rtio "lysis# $he &sis o! 
rtio "lysis is o! !our types#

• Bst rtios* %l%ulted !rom pst !i""%il stteme"ts o! the !irm#

• :ompetitor?s rtio* o! the some most pro(ressi'e "d su%%ess!ul

%ompetitor !irm t the sme poi"t o! time#

• I"dustry rtio* the i"dustry rtios to whi%h the !irm &elo"(s to

• Bro)e%ted rtios* rtios o! the !uture de'eloped !rom the pro)e%ted or 
 pro !orm !i""%il stteme"ts

27
N%TURE O3 R%TIO %N%'4SIS

Rtio "lysis is  te%h"i5ue o! "lysis "d i"terprettio" o! 

!i""%il stteme"ts# It is the pro%ess o! est&lishi"( "d i"terpreti"( 'rious
rtios !or helpi"( i" mki"( %erti" de%isio"s# It is o"ly  me"s o! 
u"derst"di"( o! !i""%il stre"(ths "d wek"esses o!  !irm# $here re 
"um&er o! rtios whi%h %" &e %l%ulted !rom the i"!ormtio" (i'e" i" the
!i""%il stteme"ts* &ut the "lyst hs to sele%t the pproprite dt "d
%l%ulte o"ly  !ew pproprite rtios# $he !ollowi"( re the !our steps
i"'ol'ed i" the rtio "lysis#

• ele%tio" o! rele'"t dt !rom the !i""%il stteme"ts depe"di"(

upo" the o&)e%ti'e o! the "lysis#

• :l%ultio" o! pproprite rtios !rom the &o'e dt#

• :ompriso" o! the %l%ulted rtios with the rtios o! the sme !irm i"
the pst* or the rtios de'eloped !rom pro)e%ted !i""%il stteme"ts or 
the rtios o! some other !irms or the %ompriso" with rtios o! the
i"dustry to whi%h the !irm &elo"(s#

INTERPRET%TION O3 T"E R%TIOS

$he i"terprettio" o! rtios is " import"t !%tor# $he i"here"t

limittio"s o! rtio "lysis should &e kept i" mi"d while i"terpreti"( them#
$he imp%t o! !%tors su%h s pri%e le'el %h"(es* %h"(e i" %%ou"ti"(
 poli%ies* wi"dow dressi"( et%#* should lso &e kept i" mi"d whe" ttempti"(

2@
to i"terpret rtios# $he i"terprettio" o! rtios %" &e mde i" the !ollowi"(
wys#

• i"(le &solute rtio

• roup o! rtios

• istori%l %ompriso"

• Bro)e%ted rtios

• I"ter4!irm %ompriso"

(UIDE'INES OR PREC%UTIONS 3OR USE O3 R%TIOS

$he %l%ultio" o! rtios my "ot &e  di!!i%ult tsk &ut their use
is "ot esy# Kollowi"( (uideli"es or !%tors my &e kept i" mi"d while
i"terpreti"( 'rious rtios re

• A%%ur%y o! !i""%il stteme"ts

• O&)e%ti'e or purpose o! "lysis

• ele%tio" o! rtios

• Use o! st"drds

• :li&er o! the "lysis

2C
IMPORT%NCE O3 R%TIO %N%'4SIS

• Aid to mesure (e"erl e!!i%ie"%y

• Aid to mesure !i""%il sol'e"%y

• Aid i" !ore%sti"( "d pl""i"(

• K%ilitte de%isio" mki"(

• Aid i" %orre%ti'e %tio"

• Aid i" i"tr4!irm %ompriso"

• A%t s  (ood %ommu"i%tio"

• E'lutio" o! e!!i%ie"%y

• E!!e%ti'e tool

'IMIT%TIONS O3 R%TIO %N%'4SIS

• i!!ere"%es i" de!i"itio"s

• >imittio"s o! %%ou"ti"( re%ords

• >%k o! proper st"drds

•  No llow"%es !or pri%e le'el %h"(es

.0
 • :h"(es i" %%ou"ti"( pro%edures

• Ju"titti'e !%tors re i("ored

• >imited use o! si"(le rtio

• 6%k(rou"d is o'er looked

• >imited use

• Berso"l &is

C'%SSI3IC%TIONS O3 R%TIOS

$he use o! rtio "lysis is "ot %o"!i"ed to !i""%il m"(er 

o"ly# $here re di!!ere"t prties i"terested i" the rtio "lysis !or k"owi"(
the !i""%il positio" o!  !irm !or di!!ere"t purposes# Hrious %%ou"ti"(
rtios %" &e %lssi!ied s !ollows;

1# $rditio"l :lssi!i%tio"

2# Ku"%tio"l :lssi!i%tio"

.# i("i!i%"%e rtios

1< Traitional Cla**ification

It i"%ludes the !ollowi"(#

• 6l"%e sheet 8or9 positio" stteme"t rtio; $hey del with the
reltio"ship &etwee" two &l"%e sheet items* e#(# the rtio o! %urre"t

.1
 ssets to %urre"t li&ilities et%#* &oth the items must* howe'er* perti"
to the sme &l"%e sheet#

• Bro!it - loss %%ou"t 8or9 re'e"ue stteme"t rtios; $hese rtios del
with the reltio"ship &etwee" two pro!it - loss %%ou"t items* e#(# the
rtio o! (ross pro!it to sles et%#*

• :omposite 8or9 i"ter stteme"t rtios; $hese rtios exhi&it the reltio"
 &etwee"  pro!it - loss %%ou"t or i"%ome stteme"t item "d 
 &l"%e sheet items* e#(# sto%k tur"o'er rtio* or the rtio o! totl
ssets to sles#

2< 3#nctional Cla**ification

$hese i"%lude li5uidity rtios* lo"( term sol'e"%y "d le'er(e

rtios* %ti'ity rtios "d pro!it&ility rtios#

=< Si+nificance ratio*

ome rtios re import"t th" others "d the !irm my %lssi!y
them s primry "d se%o"dry rtios# $he primry rtio is o"e* whi%h is o! 
the prime import"%e to  %o"%er"# $he other rtios tht support the primry
rtio re %lled se%o"dry rtios#

IN T"E -IEW O3 3UNCTION%' C'%SSI3IC%TION T"E R%TIOS

%RE

1# >i5uidity rtio

.2
2# >e'er(e rtio

.# A%ti'ity rtio

3# Bro!it&ility rtio

C$a3!'% 6 

..
  D ATA  A NALSIS 

.3
'I;UIDIT4 R%TIO

1< CURRENT R%TIO

8%!o#nt in R*<9

C#rrent Ratio

'a% C(%%'n! A))'!) C(%%'n! L*a;*&*!*') Ra!*+

200= @*73*11 7*C0.*C2 7#31

200> C*7*.3 .1*@@3*1 2#1C
200? 72*021*0@1 1*0*21 3#3@
200@ C1*.2@*20@ 37*117*1CC 1#C3
200A 11*32*0@ .0*2*1 .#@2

Interpretation

As  rule* the %urre"t rtio with 2;1 8or9 more is %o"sidered s

stis!%tory positio" o! the !irm#

<he" %ompred with 200* there is " i"%rese i" the pro'isio"
!or tx* &e%use the de&tors re rised "d !or tht the pro'isio" is %reted#
$he %urre"t li&ilities m)orly i"%luded >"%o roup o! %omp"y !or 
%o"sult"%y dditio"l ser'i%es#

$he su"dry de&tors h'e i"%resed due to the i"%rese to

%orporte txes#

I" the yer 200* the %sh "d &"k &l"%e is redu%ed &e%use
tht is used !or pyme"t o! di'ide"ds# I" the yer 2007* the lo"s "d
d'"%es i"%lude m)orly the d'"%es to employees "d deposits to

.
(o'er"me"t# $he lo"s "d d'"%es redu%ed &e%use the employees set o!! 
their %lims# $he other %urre"t ssets i"%lude the i"terest tti"ed !rom the
deposits# $he deposits redu%ed due to the de%lrtio" o! di'ide"ds# o the
other %urre"t ssets de%resed#

$he hu(e i"%rese i" su"dry de&tors resulted " i"%rese i" the
rtio* whi%h is &o'e the &e"%hmrk le'el o! 2;1 whi%h shows the
%om!ort&le positio" o! the !irm#

(R%P"IC%' REPRESENT%TION

.
 2<

;UIC& R%TIO

8%!o#nt in R*<9

;#ic$ Ratio

'a% <(*5= A))'!) C(%%'n! L*a;*&*!*') Ra!*+

200= @*73*11 7*C0.*C2 7#31

200> 2*370*.. .1*@@3*1 1#
200? C*@@.*2@ 1*0*20 3#.
200@ @C*3..*C 37*117*1CC 1#C
200A 11*3.1*@@ .0*2*1 .#@1

Interpretation

.7
 Jui%k ssets re those ssets whi%h %" &e %o"'erted i"to %sh
with i"  short period o! time* sy to six mo"ths# o* here the su"dry de&tors
whi%h re with the lo"( period does "ot i"%lude i" the 5ui%k ssets#

:ompre with 200* the Jui%k rtio is i"%resed &e%use the

su"dry de&tors re i"%resed due to the i"%rese i" the %orporte tx "d !or 
tht the pro'isio" %reted is lso i"%resed# o* the rtio is lso i"%resed
with the 200#

(R%P"IC%' REPRESENT%TION

.@
 =<

%BOSU'TE 'I;UIDIT4 R%TIO

8%!o#nt in R*<9

%5*ol#te Ca*h Ratio

'a% A;)+&(!' L*>(*d A))'!) C(%%'n! L*a;*&*!*') Ra!*+

200= .1*003*027 7*C0.*C2 .#C2

200> 10*@C*77@ .1*@@3*1 0#.3
200? .C*3*32 1*0*20 2#3
200@ .*@0*@2 37*117*1CC 1#13
200A .*3C*070 .0*2*1 1#1@

Interpretation

.C
 $he %urre"t ssets whi%h re redy i" the !orm o! %sh re
%o"sidered s &solute li5uid ssets# ere* the %sh "d &"k &l"%e "d the
i"terest o" !ixed ssts re &solute li5uid ssets#

I" the yer 200* the %sh "d &"k &l"%e is de%resed due to
de%rese i" the deposits "d the %urre"t li&ilities re lso redu%ed &e%use
o! the pyme"t o! di'ide"d# $ht %uses  sli(ht i"%rese i" the %urre"t
yer?s rtio#

30
(R%P"IC%' REPRESENT%TION

31
 'E-ER 

%(E R%TIOS

>< PROPRIETOR4 R%TIO

8%!o#nt in R*<9

Proprietor/ Ratio

'a% S$a%' H+&d'%) 9(nd) T+!a& A))'!) Ra!*+

200= 7*7C*21C 7@*72*171 0#@

200> .*.01*@.3 @@*3.@*107 0#
200? 70*2.1*01 @C*1@*.C1 0#7C
200@ *37.*2 10*.@*201 0#.
200A C7*00*01. 12C*@0*102 0#7

32
Interpretation

$he proprietry rtio est&lishes the reltio"ship &etwee"

shreholders !u"ds to totl ssets# It determi"es the lo"(4term sol'e"%y o! 
the !irm# $his rtio i"di%tes the exte"t to whi%h the ssets o! the %omp"y
%" &e lost without !!e%ti"( the i"terest o! the %omp"y#

$here is "o i"%rese i" the %pitl !rom the yer2003# $he shre
holder?s !u"ds i"%lude %pitl "d reser'es "d surplus# $he reser'es "d
surplus is i"%resed due to the i"%rese i" &l"%e i" pro!it "d loss %%ou"t*
whi%h is %used &y the i"%rese o! i"%ome !rom ser'i%es#

$otl ssets* i"%ludes !ixed "d %urre"t ssets# $he !ixed ssets
re redu%ed &e%use o! the depre%itio" "d there re "o m)or i"%reme"ts i"
the !ixed ssets# $he %urre"t ssets re i"%resed %ompred with the yer
200# $otl ssets re lso i"%resed th" pre%ious yer* whi%h resulted "
i"%rese i" the rtio th" older#

(R%P"IC%' REPRESENT%TION

3.
 %CTI-

IT4 R%TIOS

?< WOR&IN( C%PIT%' TURNO-ER R%TIO

8%!o#nt in R*<9

Wor$in+ Capital T#rno.er Ratio

'a% In5+/' 9%+/ S'%*5') W+%=*n Ca3*!a& Ra!*+

200= .*.0C*@.3 0*70*1CC 0#72

200> .*@CC*0@3 .7*@@0*7.0 1#32
200? 72*72@*7C *.*30 1#.1
200@ *0*3C 33*211*00C 1#2
200A C*3*C02 @*.7*307 1#1.

Interpretation

33
 I"%ome !rom ser'i%es is (retly i"%resed due to the extr
i"'oi%e !or Opertio"s - Mi"te""%e !ee "d the worki"( %pitl is lso
i"%resed (reter due to the i"%rese i" !rom ser'i%es &e%use the hu(e
i"%rese i" %urre"t ssets#

 $he i"%ome !rom ser'i%es is rised "d the %urre"t ssets re
lso rised to(ether resulted i" the de%rese o! the rtio o! 2007 %ompred
with 200#

3
(R%P"IC%' REPRESENT%TION

3
 @<

3IED %SSETS TURNO-ER R%TIO

8%!o#nt in R*<9

3ie %**et* T#rno.er Ratio

'a% In5+/' 9%+/ S'%*5') N'! 9*?'d A))'!) Ra!*+

200= .*.0C*@.3 2@*@.3*.17 1#2

200> .*@CC*0@3 2C*@*27C 1#@2
200? 72*72@*7C 17*1.7*.10 3#23
200@ *0*3C 1*0*CC. .#C
200A C*3*C02 13*1.*0.3 #@2

Interpretation

37
 Kixed ssets re used i" the &usi"ess !or produ%i"( the (oods to
 &e sold# $his rtio shows the !irm?s &ility i" (e"erti"( sles !rom ll
!i""%il resour%es %ommitted to totl ssets# $he rtio i"di%tes the %%ou"t
o! o"e rupee i"'estme"t i" !ixed ssets#

$he i"%ome !rom ser'i%es is (reterly i"%resed i" the %urre"t

yer due to the i"%rese i" the Opertio"s - Mi"te""%e !ee due to the
i"%rese i" extr i"'oi%e "d the "et !ixed ssets re redu%ed &e%use o! the
i"%resed %hr(e o! depre%itio"# Ki"lly* tht e!!e%ted  hu(e i"%rese i" the
rtio %ompred with the pre'ious yer?s rtio#

3@
(R%P"IC%' REPRSENT%TION

3C
 A<

C%PIT%' TURNO-ER R%TIO

8%!o#nt in R*<9

Capital T#rno.er Ratio

'a% In5+/' 9%+/ S'%*5') Ca3*!a& E/3&+@'d Ra!*+

200= .*.0C*@.3 .7*17*@C2 0#C@

200> .*@CC*0@3 .*.01*@.3 1#01
200? 72*72@*7C 70*2.1*01 1#03
200@ *0*3C *37.*2 0#C@
200A C*3*C02 C7*00*01. 1#00

Interpretation

0
 $his is "other rtio to )ud(e the e!!i%ie"%y "d e!!e%ti'e"ess
o! the %omp"y like pro!it&ility rtio#

$he i"%ome !rom ser'i%es is (reterly i"%resed %ompred

with the pre'ious yer "d the totl %pitl employed i"%ludes %pitl "d
reser'es - surplus# ue to hu(e i"%rese i" the "et pro!it the %pitl
employed is lso i"%resed lo"( with i"%ome !rom ser'i%es# 6oth re
e!!e%ted i" the i"%reme"t o! the rtio o! %urre"t yer#

1
(R%P"IC%' REPRESENT%TION

2
 <

CURRENT %SSETS TO 3IED %SSETS R%TIO

8%!o#nt in R*<9

C#rrent %**et* To 3ie %**et* Ratio

'a% C(%%'n! A))'!) 9*?'d A))'!) Ra!*+

200= @*23*11 1C*CC@*020 2#C.

200> C*7*.3 1@*72*71 .#73
200? 72*021*0@1 17*1.7*.10 3#20
200@ C1*.2@*20@ 1*0*CC. #07
200A 11*32*0@ 13*1.*0.3 @#17

Interpretation

.
 :urre"t ssets re i"%resed due to the i"%rese i" the su"dry
de&tors "d the "et !ixed ssets o! the !irm re de%resed due to the %hr(e o! 
depre%itio" "d there is "o m)or i"%reme"t i" the !ixed ssets#

$he i"%reme"t i" %urre"t ssets "d the de%rese i" !ixed ssets
resulted " i"%rese i" the rtio %ompred with the pre'ious yer 

3
(R%P"IC%' REPRESENT%TION


 PRO3I

T%BI'IT4 R%TIOS

(ENER%' PRO3IT%BI'IT4 R%TIOS

< NET PRO3IT R%TIO

8%!o#nt in R*<9

Net Profit Ratio

'a% N'! P%+,*! A,!'% Ta? In5+/' ,%+/ S'%*5') Ra!*+

200= 21*12.*373 .*0.C*@.3 0#C

200> 1*12*C32 .*@CC*0@3 0#.0
200? 1*C2C*227 72*72@*7C 0#2.
200@ 1@*2C*@0 *0*3C 0#..
200A 30*@*.C C*3*C02 0#32


Interpretation

$he "et pro!it rtio is the o'erll mesure o! the !irm?s &ility to
tur" e%h rupee o! i"%ome !rom ser'i%es i" "et pro!it# I! the "et mr(i" is
i"de5ute the !irm will !il to %hie'e retur" o" shreholder?s !u"ds# i(h
"et pro!it rtio will help the !irm ser'i%e i" the !ll o! i"%ome !rom ser'i%es*
rise i" %ost o! produ%tio" or de%li"i"( dem"d#

$he "et pro!it is i"%resed &e%use the i"%ome !rom ser'i%es is

i"%resed# $he i"%reme"t resulted  sli(ht i"%rese i" 2007 rtio %ompred
with the yer 200#

7
(R%P"IC%' REPRESENT%TION

@
10< OPER%TIN( PRO3IT

8%!o#nt in R*<9

Operatin+ Profit

'a% O3'%a!*n P%+,*! In5+/' 9%+/ S'%*5') Ra!*+

200= .*0C3*@77 .*.0C*@.3 0#CC

200> 27*7*@13 .*@CC*0@3 0#1
200? 2C*30*CC 72*72@*7C 0#31
200@ .1*@*71@ *0*3C 0#7
200A 7*1C2*77 C*3*C02 0#70

Interpretation

$he operti"( pro!it rtio is used to mesure the reltio"ship

 &etwee" "et pro!its "d sles o!  !irm# epe"di"( o" the %o"%ept* it will
de%ide#

$he operti"( pro!it rtio is i"%resed %ompred with the lst

yer# $he er"i"(s re i"%resed due to the i"%rese i" the i"%ome !rom
ser'i%es &e%use o! Opertio"s - Mi"te""%e !ee# o* the rtio is i"%resed
sli(htly %ompred with the pre'ious yer#

C
(R%P"IC%' REPRESENT%TION

0
11< RETURN ON TOT%' %SSETS R%TIO

8%!o#nt in R*<9

Ret#rn on Total %**et* Ratio

'a% N'! P%+,*! A,!'% Ta? T+!a& A))'!) Ra!*+

200= 21*12.*373 7@*72*171 0#27

200> 1*12*C32 @@*3.@*107 0#1@
200? 1*C2C*227 @C*1@*.C1 0#1C
200@ 1@*2C*@0 10*.@*201 0#17
200A 30*@*.C 12C*@0*102 0#.1

Interpretation

$his is the rtio &etwee" "et pro!it "d totl ssets# $he rtio
i"di%tes the retur" o" totl ssets i" the !orm o! pro!its#

$he "et pro!it is i"%resed i" the %urre"t yer &e%use o! the
i"%reme"t i" the i"%ome !rom ser'i%es due to the i"%rese i" Opertio"s -
Mi"te""%e !ee# $he !ixed ssets re redu%ed due to the %hr(e o! 
depre%itio" "d "o m)or i"%reme"ts i" !ixed ssets &ut the %urre"t ssets
re i"%resed &e%use o! su"dry de&tors "d tht e!!e%ts " i"%rese i" the
rtio %ompred with the lst yer i#e# 200#

1
(R%P"IC%' REPRESENT%TION

2
 12<

RESER-ES : SURP'US TO C%PIT%' R%TIO

8%!o#nt in R*<9
Re*er.e* : S#rpl#* To Capital Ratio

4ear Re*er.e* : S#rpl#* Capital Ratio

200= *CC*2CC 2*07C*C20 .1#3

200> .3*@2*3 1@*71C*2@0 1#@
200? 1*11*7@1 1@*71C*2@0 2#7
200@ .7*73*.72 1@*71C*2@0 2#02
200A 7@*.30*7.. 1@*71C*2@0 3#1C

Interpretation

.
 $he rtio is used to re'el the poli%y pursued &y the %omp"y 
'ery hi(h rtio i"di%tes  %o"ser'ti'e di'ide"d poli%y "d 'i%e4'ers#
i(her the rtio &etter will &e the positio"#

$he reser'es - surplus is de%resed i" the yer 200* due to the
 pyme"t o! di'ide"ds "d i" the yer 2007 the pro!it is i"%resed# 6ut the
%pitl is remi"i"( %o"st"t !rom the yer 2003# o the i"%rese i" the
reser'es - surplus %used  (reter i"%rese i" the %urre"t yer?s rtio
%ompred with the older#

3
(R%P"IC%' REPRESENT%TION


 O-ER 

%'' PRO3IT%BI'IT4 R%TIOS

1=< E%RNIN(S PER S"%RE

8%!o#nt in R*<9
Earnin+* Per Share

'a% N'! P%+,*! A,!'% Ta? N+ +, E>(*!@ S$a%') Ra!*+

200= 21*12.*373 207*CC2 101#

200> 1*12*C32 1*@71*C2@ @#1
200? 1*C2C*227 1*@71*C2@ C#03
200@ 1@*2C*@0 1*@71*C2@ C#7
200A 30*@*.C 1*@71*C2@ 21#@


Interpretation

Er"i"(s per shre rtio re used to !i"d out the retur" tht the
shreholder?s er" !rom their shres# A!ter %hr(i"( depre%itio" "d !ter 
 pyme"t o! tx* the remi"i"( mou"t will &e distri&uted &y ll the
shreholders#

 Net pro!it !ter tx is i"%resed due to the hu(e i"%rese i" the
i"%ome !rom ser'i%es# $ht is the mou"t whi%h is 'il&le to the
shreholders to tke# $here re 1*@71*C2@ shres o! Rs#10/4 e%h# $he shre
%pitl is %o"st"t !rom the yer 2003# ue to the hu(e i"%rese i" "et pro!it
the er"i"(s per shre is (reterly i"%resed i" 2007#

7
(R%P"IC%' REPRESENT%TION

@
 1><

PRICE E%RNIN(S 8PFE9 R%TIO

8%!o#nt in R*<9

Price Earnin+ 8PFE9 Ratio

'a% Ma%='! P%*5' P'% S$a%' Ea%n*n) P'% S$a%' Ra!*+

200= .2#3 101# 0#.2

200> 2@#37 @#1 .#.0
200? .7#2 C#03 3#1
200@ .0#17 C#7 .#0C
200A 1#@ 21#@ 2#.C

Interpretation

C
 $he rtio is %l%ulted to mke " estimte o! ppli%tio" i" the
'lue o! shre o!  %omp"y#

$he mrket pri%e per shre is i"%resed due to the i"%rese i"
the reser'es - surplus# $he er"i"(s per shre re lso i"%resed (reterly
%ompred with the lst yer &e%use o! i"%rese i" the "et pro!it# o* the
rtio is de%resed %ompred with the pre'ious yer#

70
(R%P"IC%' REPRESENT%TION

71
1?< RETURN ON IN-ESTMENT

8%!o#nt in R*<9

Ret#rn on In.e*t!ent

'a% N'! P%+,*! A,!'% Ta? S$a%' H+&d'%) 9(nd Ra!*+

200= 21*12.*373 7*7C*21C 0#.1

200> 1*12*C32 .*.01*@.3 0#.
200? 1*C2C*227 70*2.1*01 0#23
200@ 1@*2C*@0 *37.*2 0#.2
200A 30*@*.C C7*00*01. 0#32

Interpretation

$his is the rtio &etwee" "et pro!its "d shreholders !u"ds# $he
rtio is (e"erlly %l%ulted s per%e"t(e multiplyi"( with 100#

$he "et pro!it is i"%resed due to the i"%rese i" the i"%ome
!rom ser'i%es "t the shreholders !u"ds re i"%resed &e%use o! reser'e -
surplus# o* the rtio is i"%resed i" the %urre"t yer#

72
(R%P"IC%' REPRESENT%TION

7.
C$a3!'% 6  

73
9  INDINGS S UMARR B C ONCLUSION 

7
3INDIN(S O3 T"E STUD4

1# $he %urre"t rtio hs show" i"

 !lu%tuti"( tre"d s 7#31* 2#1C* 3#3@* 1#C@* "d .#@2 duri"( 200. o! 
whi%h i"di%tes  %o"ti"uous i"%rese i" &oth %urre"t ssets "d
%urre"t li&ilities#

2# $he 5ui%k rtio is lso i" 

!lu%tuti"( tre"d throu(h out the period 200.  07 resulti"( s 7#31*
1#* 3#.* 1#C* "d .#@1# $he %omp"y?s prese"t li5uidity positio" is
stis!%tory#

.# $he &solute li5uid rtio hs

 &ee" de%resed !rom .#C2 to 1#1@* !rom 200.  07#

3# $he proprietory rtio hs show"

 !lu%tuti"( tre"d# $he proprietory rtio is i"%resed %ompred with
the lst yer# o* the lo"( term sol'e"%y o! the !irm is i"%resed#

# $he worki"( %pitl i"%resed

!rom 0#72 to 1#1. i" the yer 200.  07#

# $he !ixed ssets tur"o'er rtio

is i" i"%resi"( tre"d !rom the yer 200.  07 81#2* 1#@2* 3#23* .#C*
"d #@29# It i"di%tes tht the %omp"y is e!!i%ie"tly utili+i"( the
!ixed ssets#

7# $he %pitl tur"o'er rtio is

i"%resed !orm 200.  0 80#C@* 1#01* "d 1#039 "d de%resed i" 200
to 0#C@# It i"%resed i" the %urre"t yer s 1#00#

7
@# $he %urre"t ssets to !ixed
ssets rtio is i"%resi"( (rdully !rom 200.  07 s 2#C.* .#73* 3#20*
#07 "d @#17# It shows tht the %urre"t ssets re i"%resed th" !ixed
ssets#

C# $he "et pro!it rtio is i"

!lu%tutio" m""er# It i"%resed i" the %urre"t yer %ompred with the
 pre'ious yer !orm 0#.. to 0#32#

10# $he "et pro!it is i"%resed

(reterly i" the %urre"t yer# o the retur" o" totl ssets rtio is
i"%resed !rom 0#17 to 0#.1#

11# $he Reser'es "d urplus to

:pitl rtio is i"%resed to 3#1C !rom 2#02# $he %pitl is %o"st"t*
 &ut the reser'es "d surplus is i"%resed i" the %urre"t yer#

12# $he er"i"(s per shre ws

'ery hi(h i" the yer 200. i#e#* 101## $ht is de%resed i" the
!ollowi"( yers &e%use "um&er o! e5uity shres re i"%resed "d the
"et pro!it is de%resed# I" the %urre"t yer the "et pro!it is i"%resed
due to the i"%rese i" operti"( "d mi"te""%e !ee# o the er"i"(s
 per shre is i"%resed#

1.# $he operti"( pro!it rtio is i"

!lu%tuti"( m""er s 0#CC* 0#1* 0#31* 0#7 "d 0#C !rom 200.  07
respe%ti'ely#

77
13# Bri%e Er"i"(s rtio is redu%ed
whe" %ompred with the lst yer# It is redu%ed !rom .#0C to 2#.C*
 &e%use the er"i"(s per shre is i"%resed#

1# $he retur" o" i"'estme"t is

i"%resed !rom 0#.2 to 0#32 %ompred with the pre'ious yer# 6oth the
 pro!it "d shreholders !u"ds i"%rese %use " i"%rese i" the rtio#

7@
SUMM%R4

1 A!ter the "lysis o! Ki""%il tteme"ts* the %omp"y sttus is

 &etter* &e%use the Net worki"( %pitl o! the %omp"y is dou&led
!rom the lst yer?s positio"#

2 $he %omp"y pro!its re hu(e i" the %urre"t yerL it is &etter to de%lre
the di'ide"d to shreholders#

. $he %omp"y is utilisi"( the !ixed ssets* whi%h m)orly help to the
(rowth o! the or("istio"# $he %omp"y should mi"ti" tht
 per!e%tly#

3 $he %omp"y !ixed deposits re rised !rom the i"%eptio"* it (i'es the
other i"%ome i#e#* I"terest o" !ixed deposits#

CONC'USION

$he %omp"y?s o'erll positio" is t  (ood positio"#

Brti%ulrly the %urre"t yer?s positio" is well due to rise i" the pro!it le'el
!rom the lst yer positio"# It is &etter !or the or("i+tio" to di'ersi!y the
!u"ds to di!!ere"t se%tors i" the prese"t mrket s%e"rio#

7C
BIB'IO(R%P"4

RE33ERED BOO&S

• KINAN:IA> MANAEMEN$ 4 I# M# BANEY

• MANAEMEN$ A::OUN$AN:Y 4 BI>>AI - 6AAHA$I

• MANAEMEN$ A::OUN$IN  ARMA - UB$A

INTERNET SITE

www#er%p#or(

www#wikipedi#%om

@0
 www#"wd#(o'#i" %PPENDI

Balance *heet a* on =1 *t March 200A

8%!o#nt in R*<9

Partic#lar* 200@ G 0A 200? G 0@

SOURCES O3 3UNDS 
19 S"%RE"O'DERSH 3UNDS
89 :pitl 1@*71C*2@0 1@*71C*2@0
8&9 Reser'es "d urplus 7@*.30*7.. .7*73*.72
C7*00*01. *37.*2
29 DE33ERED T% 'I%BI'IT4 2*37@*32@ 2*7C3*.0
TOT%' CC*.@*331 C*2@*002
%PP'IC%TION O3 3UNDS 
19 3IED %SSETS
89 ross 6lo%k .1*07*C 2C*77*C7C
8&9 >ess; epre%itio" 1*@C3*2 13*710*C@
8%9 Net 6lo%k 13*1.*0.3 1*0*CC.
29 CURRENT %SSETS, 'O%NS %ND %D-%NCES
89 u"dry e&tors @0*712*@03 .7*@*320
8&9 :sh "d 6"k 6l"%es .3*03.*20 1*C0*.2
8%9 Other :urre"t Assets 12*22@ @7*7.
8d9 >o"s "d Ad'"%es 7..*1 C2.*70C
11*32*0@ C1*.2@*20@
'ESS  CURRENT 'I%BI'ITIES %ND PRO-ISIONS
89 >i&ilities 21*C*C1 .@*C1*2
8&9 Bro'isio"s @*C*73 @*2*C.3
.0*2*1 37*117*1CC
NET CURRENT %SSETS @*.7*307 33*211*00C
TOT%' CC*.@*331 C*2@*002

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