MARUT SUZUKI

Balance Sheet as at 31 March

As at Particulars 31.03.11

SOURCES OF FUNDS
SHAREHOLDERS' FUNDS Capital Reserves and Surplus LOAN FUNDS Secured Loans Unsecured Loans DEFERRED TAX (Note 19 on Schedule 23) Deferred Tax Liabilities Deferred Tax Assets 1,445 116,906

118,351
265 7,949

8,214
2,206 (836) 1,370

Total
APPLICATION OF FUNDS FIXED ASSETS Gross Block Less: Depreciation Capital Work-In-Progress INVESTMENTS CURRENT ASSETS, LOANS AND ADVANCES Inventories Sundry Debtors Cash and Bank Balances Other Current Assets Loans and Advances LESS: CURRENT LIABILITIES AND PROVISIONS Current Liabilities Provisions Net Current Assets Total Significant Accounting Policies Notes to Accounts

127,935

104,067 (53,820) 50,247 3,876

54,123 71766
12,088 8,099 982 848 15,707

37,724
29,394 6,284 35,678

2,046 127,935

rch
As at 31.03.10

1,445 92,004

93,449
1 6,988

6,989
2,340 (789) 1,551

101,989

87,206 (46,498) 40,708 8,613

49,321 31,733
9,023 9,378 19,390 981 16,328

55,100
30,358 3,807 34,165

20,935 101,989

For the year ended Particulars 31/3/11 318,073 28,488 289,585 1,404 10,209

For the year ended 31/3/10 230,852 27,269 203,583 954 10,001

INCOME
Gross Sales less: Excise Duty Net Sales Income from Services [Net of expenses Rs 50 million (previous year Rs 153 million)] Other Income

Total EXPENDITURE
Consumption of Raw Materials and Components Purchase of Traded Goods Consumption of Stores Employees Remuneration and Benefits Manufacturing, Administrative and Other Expenses Selling and Distribution Expenses Total Less: Vehicles/Dies for Own Use Add: (Increase)/Decrease to Work-in-Progress and Finished Goods and Spare Parts

301,198

214,538

214,881 9,050 2,432 5,456 17,938 9,160 258,917 296

150,598 7,256 1,978 4,711 15,685 7,382 187,610 223

(1,933)

2,818

Total Earnings before Interest, Depreciation, Tax and Amortizations (EBIDTA)

Interest Depreciation

256,688 44,510
335 8,250 8,585

190,205 24,333
510 7,065 7,575

Profit before Tax

Less : Tax Expense - Current Tax - Deferred Tax (Note 19 on Schedule 23) - Fringe Benefit Tax

35,925
11,230 (281) -

16,758
4,592 (118) 97

Profit after Tax

Add: Brought forward from previous year's account Profit available for Appropriation Less: Appropriation : General Reserve Proposed Dividend Corporate Dividend Tax Balance carried forward to Balance Sheet Basic/Diluted Earnings Per Share (in Rupees)

24,976
80,042 105,018 2,498 1,733 288 100,499 86.45

12,187
70,257 82,444 1,219 1,011 172 80,042 42.18

MARUTI SUZUKI
COGS SGA
Financial Ratios 231648.67 164437.33 12,627 9,688 2011 2010 Formulae Long term Debt / Total Shareholder's Equity

Debt-Equity Ratio

0.04

0.07

Current Ratio Interest Coverage Ratio

1.06 132.87

1.61 47.71

Current Assets / Current Liabilities EBIT / Interest (PAT + Depriciation + Interest Payment) / (Interest Payment + Total Debt/3) COGS / Avg Inventory 365 / Inventory Turnover Gross Sales / Avg Sundry Debtors 365 / Receivables Turnover Purchases / Avg Sundry Creditors 365 / Payables Turnover Revenue / Avg Total Assets Revenue / Avg Fixed Assets Days of Sales Outstanding + Days of Inventory on hand

Debt Service Coverage Ratio Inventory Turnover Days of Inventory on hand Debtors Turnover Days of Sales Outstanding Creditors Turnover Days of Payables Total Assets Turnover Net Fixed Assets Turnover Operating Cycle (Days)

14.48 21.95 16.63 36.40 10.03 #REF! #REF! 2.35 5.99 26.66

8.57 18.22 20.03 24.62 14.83 #REF! #REF! 2.10 5.27 34.86

Gross profit margin Operating Profit Margin Net Profit Margin SGA Expenses to Net Sales EBIT to Net Sales

20.00% 20.01% 8.62% 0.04 0.09

19.00% 19.23% 5.99% 0.05 0.06

Gross profit/Net sales Operating Profit / Net Sales PAT/ Net Sales SGA / Net Sales EBIT / Net Sales

Return on Capital Employed Return on Equity Return on Net Worth Earnings Per Share (Rs.) Cash Earnings Per Share (Rs.) Price/Earnings Ratio Dividend Payout Ratio Operating Income to Profit After Tax

19.73% 1728.44% 21.10% 86.45 115.00 16.38 0.05 2.32

(PAT + Interest) / Equity + Loan 12.13% funds 843.39% PAT / Equity Share Capital PAT / Equity + Preference Share 13.04% Capital 42.18 66.64 18.37 0.06 3.21 PAT / Outstanding Shares PAT + Depreciation / Outstanding Shares Market Price / Basic EPS Proposed dividend / Net Income (Net Sales - COGS) / PAT

Investments to Net Worth Investments to Capital Employed

0.61 0.57

0.34 0.32

Investments / Shareholders' funds Investments / Shareholders' funds + Loan funds

ARUTI SUZUKI

Interpretation Low Debt Equity Ratio is good from a banker's point of view because their interests are better protected in the event of a business decline. It should reduce its dependancy on current liability and probably could finance from long term debt The company has taken out a large amount of cash and has put it in producing more goods and investing highly thereby generating more income, while keeping the ratio greater than 1 implying the company can meet short-term debt obligations without any stress The company is generating enough profit to pay the interest. The ratio is very high because the company is equity driven and has very small debt on its books. The high difference can be contributed to the high profit because of the increase in sales which implies that the company is doing very well The ratio has increased due to the increase in the sales. It has reduced implies that the company has been able to convert the finished goods into sales faster than it used to

Higher ratio implies that the debts are collected more efficiently and it can also be contributed to the increase in sales.

The ratio has increased because the purchases have gone up significantly and the sundry creditors have gone down. It also shows that the company is repaying its debt faster The ratio has increased slightly owing to the increase in revenue generated by the company The ratio has increased slightly owing to the increase in revenue generated by the company The operating cycle has reduced means that the inventory is turning into sales faster and the debts are collected more efficiently The Gross Profit ratio has gone up marginally in the financial Yr.2010-11.It indicates a meagre rise in the way the company controls the cost of its inventory and the manufacturing of its products. There hasnt been much increase in the margin inspite of the increase in the sales which imples the cost of goods sold are increasing in proportion The Net Profit Margin is ver low which means that the selling and administrative expenses is large and companies need to cut on that There has been a reduction in the SGA expenses which is reflected in the Net Profit margin

The return has increased implying that the company has effectively used the capital at its disposal to generate more profit

EPS has doubled which means that the profit has gone up significantly . The increase in EPS also increases the confidence among the shareholders. Though earnings have increased, its PE ratios still reduced which basically shows that the market price have not increased as much as earnings. Company is retaining its profit because it want to depend on its own fund as we can also see there is a reduction in unsecured funds There is a reduction in the in the ratio due to the increament in the profits The ratio has shown a remarkable growth because the company took out the cast and invested most of it. This wil help the company to generate more income rather than letting the cash sit idle

CEAT

Balance Sheet as at 31 March

Particulars I. Sources of Funds 1 Shareholders' Funds (a) Share Capital (b) Reserves & Surplus 2 Loan Funds (a) Secured Loans (b) Unsecured Loans 3 Deferred Tax Adjustments 2011 Rs. In Lakhs Rs. In Lakhs

3424.35 59447.1 62871.45 31205.11 34179.44 65384.55

Deferred Tax Liabilities(Net) Total II. Application of Funds 1 Fixed Assets (a) Gross Block (b) Less: Depreciation and write downs (c) Net Block (d) Capital Work in progress, expenditure till date 2 Technical Know-how 3 Investments 4 Current Assets, Loans and Advances (a) Inventories (b) Sundry Debtors (c) Cash and Bank Balances (d) Other Current Assets (e) Loans and Advances Less: Current Liabilities and Provisions (a) Liabilities (b) Provisions Net Current Assets

2016.83 130272.83

125641.14 48748.36 76892.78 23383.8 100276.58 5850.77 40607.57 37631.61 13998.91 11010.26 103248.35 75467.05 3635.82 79102.87 24145.48

5 Miscellaneous Expenditure not written off Voluntary Retirement Compensation Total

130272.83

2010 Rs. In Lakhs

3424.35 45413.8 48838.15 39812.43 24701.99 64514.42

1630.38 114982.95

123405.98 45867.39 77538.59 1956.1 79494.69 4266.71 21941.63 31870.85 20151.84 7942.64 81906.96 48905.12 1780.29 50685.41 31221.55

114982.95

CEAT

Profit and Loss Account for the year ended 31 March

Particulars
Income
Sales Less: Excise Duty Net Sales Other Income 298997.2 18249.6 280747.6 4214.87

2011 Rs. In Lakhs

Expenditure
Materials Cost of Traded Goods Sold Personnel Other Expenses Interest Depreciation and write downs Less : Transferred from Revaluation Reserve Less : Transferred to Pre-Operative Expenses 172825.69 16313.64 19268.04 46539.78 5683.13 3158.79 468.32 2.18 263318.57 -2255.75

Add / (Less) : Decrease / (Increase) in stock Operating Profit before taxation and exceptional items Taxation
Current Tax Short /(Excess) Provision Deferred Tax Fringe Benefit Tax

7409.05 386.45 -

Profit after tax

Add : Balance brought forward

Profit available for appropriation

Transfer to General Reserve Proposed Dividend Corporate Dividend Tax thereon

Balance Carried to Balance Sheet

Notes forming part of the Financial Statements

Basic and diluted Earnings Per Share (Rs.)

Nominal value per share (Rs.)

Net Profit (Rs. In Lakh)

Weighted average number of Shares (In Lakhs)

ded 31 March
Rs. In Lakhs 2010 Rs. In Lakhs
261122.8 24473.88 236648.92 4913

11

284962.47

241561.92
170428.51 10664.56 16069.27 39765.1 6969.81 3452.02 876.94 13.35 246458.98 -1179.83

261062.82 23899.65

245279.15 -3717.23

9.94 -1188.55 -1100.03 172.58

7795.5 16104.15
10844.4

-2106.06 -1611.17
12455.57

26948.55
1615 1369.74 232.79

10844.4
-

23731.02 47.03
10

-4.71
10

26948.55
342.43534

10844.4
342.427

CEAT
Financial Ratios 2011 2010

Debt-Equity Ratio

1.040

1.32

Current Ratio

1.31

1.62

Quick Ratio

0.79

1.18

Interest Coverage Ratio Debt Service Coverage Ratio Inventory Turnover Creditors Turnover Current Assets Turnover EBIT to Net Sales Return on Capital Employed Return on Equity Return on Net Worth Earnings Per Share (Rs.) Cash Earnings Per Share (Rs.) Price/Earnings Ratio Dividend Payout Ratio Operating Income to Profit After Tax

4.21 0.63 6.14 4.59 2.72 0.09 16.99% 42.86% 42.86% 78.70 87.92 1.84 0.05 3.29

-0.53 0.28 8.44 6.39 2.89 -0.02 4.73% 22.20% 4.49% 31.67 41.75 1.10 0.00 4.67

CEAT
Formulae

Long term Debt / Total Shareholder's Equity

Current Assets / Current Liabilities (Cash + Sundry Debtors) / (Current Liabilities) EBIT / Interest (PAT + Depriciation + Interest Payment) / (Interest Payment + Total COGS / Avg Inventory Purchases / Avg Sundry Creditors Revenue / Avg Total Assets EBIT / Net Sales (PAT + Interest) / Equity + Loan funds PAT / Equity Share Capital PAT / Equity + Preference Share Capital PAT / Outstanding Shares PAT + Depreciation / Outstanding Shares Market Price / Basic EPS Proposed dividend / Net Income (Net Sales - COGS) / PAT

CEAT
ANALSIS D/E ratio has decreased YoY.This implies that the financial claim of the creditors is not great and the company is well placed.As company's ROI is increasing YoY,it can afford to have some more debt than it has if the need be. Relative gap b/w current assets and current liabilities is decreasing.Although it's not that big a concern at the moment,Company must ensure that it does not face any liquidity concerns in the future. Quick Ratio has fallen in 2010 mainly due to almost doubling of current liabilities.Ideally,quick ratio should be 1:1. Increase in this ratio indicates better capability of the company to fulfill its interest obligation when compared to the previous year. DSCR has increased more than twice due to the huge increase in profits in 2010. Inventory turnover has decreased mainly due to increase in levels of average inventory.(Inventory has almost doubled in 2010.) A low turnover ratio reflects liberal credit terms granted by suppliers. Increase in sales has been offset by the increase in current assets. Increase in this ratio shows profits from day to day operations of the company are increasing which is a good sign. High ROCE shows efficient use of capital employed. Profits have almost doubled as the economy started coming out of recession. Since there are no preference shares,Equity and net worth are the same. Profit available to equity shareholders on a per share basis has more than doubled. Cash earning available to equity shareholders on a per share basis has more than doubled which is a very good sign. Even though EPS has more than doubled,P/E ratio still increased due to high increase in price of the share. In 2009,company din't pay any dividend as economic situation was bad.As the conditions started improving,company paid dividend in 2010. OI to PAT has decreased which is a good sign.