ANALYSIS OF FINACIAL

[Document subtitle]

TABLE OF CONTENTS Sr. No 1 Executive Summary 2 3 4 5 6 7 Introduction Nature of Business Two Wheeler Industry Overview Core Competencies of Bajaj Auto Ratio Analysis Main ratios covered in this project a)Profitability b)Liquidity Ratio c)Solvency Ratio d)Turnover Ratio e)Market Ratio Data Analysis and Interpretation Findings Conclusion Balance Sheet Profit and Loss Content Page No

8 9 10 11 12

EXECUTIVE SUMMARY
The Bajaj Group was founded in 1926 by Jamnalal Bajaj and now consists of 27 companies. In 1945, Jamnalal Bajaj had formed M/s Bachraj Trading Corporation Private Limited, the flagship company, to sell imported two-wheelers and three-wheelers. The company acquired a license from the government in 1959 to manufacture these vehicles and went public the next year. By 1977, the company saw its plant rolling out 100,000 vehicles in a single year. In another nine years, Bajaj Auto could produce 500,000 vehicles in a year. The present Chairman of the Bajaj group, Rahul Bajaj, took charge of the business in 1965. He was the first licensee of the Indian make of the Italian Vespa scooter. Japanese and Italian scooter companies began entering the Indian market in the early 1980s. Although some boasted superior technology and flashier brands, Bajaj Auto had built up several advantages in the previous decades. Its customers liked the durability of the product and the ready availability of maintenance; the company's distributors permeated the country. By 199495, Bajaj was racing to beat Honda, Suzuki and Kawasaki in the two-wheeler segment internationally. By 1997, Bajaj faced tough competition in the domestic market and its market share stood at 40.5%. Under the leadership of Rahul Bajaj, the turnover of Bajaj Auto has gone up from Rs.72 million to Rs.46.16 billion (USD 936 million), its product portfolio has expanded from one to many and the brand has found a global market. Bajaj as a brand is well-known across several countries in Latin America, Africa, Middle East, South and South East Asia.The company has a network of 498 dealers and over 1,500 authorised service centers and 162 exclusive threewheeler dealers spread across the country. Bajaj has identified a segment of customers called 'Probikers', who are knowledgeable about motorbikes and appreciative of contemporary technology. They are trendsetters and very choosy about what they ride. Hence, Probikers need to be addressed in a meaningful way that goes beyond the product. Bajaj Auto is in the process of setting up a chain of retail stores across the country exclusively for high-end, performance bikes. These stores are called Bajaj Probiking". Fifty two such stores have been opened across India. Catering to demand in this sector requires a strong and effective distribution network as consumers are more demanding and expect delivery on time. Early delivery is a cause of delight for customers. With such vast global and Indian rural presence, designing an efficient distribution system becomes a complex task even for a company like Bajaj.

Introduction
Bajaj Auto is a major Indian automobile manufacturer started by a Rajasthani merchant. It is world's fourth largest manufacturer of two-wheelers and India's third largest two wheeler manufacturer and the world's 4th largest two- and three-wheeler maker. It is based in Pune, Maharashtra, with plants in Akurdi and Chakan (Pune), Waluj (near Aurangabad) and Pantnagar in Uttaranchal. Bajaj Auto makes and exports motor scooters, motorcycles and the auto rickshaw.Bajaj brand is well-known across several countries in Latin America, Africa, Middle East, South and South East Asia. The Forbes Global 2000 list for the year 2005 ranked Bajaj Auto at 1946. Over the last decade, the company has successfully changed its image from a scooter manufacturer to a two wheeler manufacturer. Its product range encompasses scooterettes, scooters and motorcycles. Its real growth in numbers has come in the last four years after successful introduction of a few models in the motorcycle segment.

Bajaj Auto came into existence on November 29, 1945 as M/s Bachraj Trading Corporation Private Limited. It started off by selling imported two- and three- wheelers in India. In 1959, it obtained license from the Government of India to manufacture twoand three-wheelers and it went public in 1960. In 1970, it rolled out its 100,000th vehicle. In 1977, it managed to produce and sell 100,000 vehicles in a single financial year. In 1985, it started producing at Waluj in Aurangabad. In 1986, it managed to produce and sell 500,000 vehicles in a single financial year. In 1995, it rolled out its ten millionth vehicle and produced and sold 1 million vehicles in a year. The turnover of the Bajaj Auto the flagship company has gone up from INR.72 million to INR. 120 billion, its product portfolio has expanded and the brand has found a global market.

NATURE OF THE BUSINESS

Bajaj Auto Ltd. is the largest exporter of two and three wheelers. With Kawasaki Heavy Industries of Japan, Bajaj manufactures state-of-the-art range of twowheelers. The brand, Pulsar is continually dominating the Indian motorcycle market in the premium segment. Its Discover DTSi is also a successful bike on Indian roads. The Bajaj Group is amongst the top 10 business houses in India. Its footprint stretches over a wide range of industries, spanning automobiles (two- wheelers and three-wheelers), home appliances, lighting, iron and steel, insurance, travel and finance. Bajaj Auto, the flagship company of the Bajaj group, manufacturers two-wheelers and three-wheelers scooters. The company manufactures and markets scooters, motorcycles, passenger carriers and goods carriers. Bajaj Auto also trades spare parts and accessories. The company has distribution network in 50 countries and presence in India, Sri Lanka, Colombia, Bangladesh, Mexico, Central America, Peru and Egypt. It is headquartered in Pune, India. BAL has two main objectives: To cater the market needs of transportation by providing 2 wheeler and 3 wheeler vehicles and to produce the catalogue products to cater to the changing market requirements. Bajaj Auto Limited makes scooters for commuters. The company manufactures and sells small motorcycles, scooters, and three-wheeler vehicles. Motorcycle and scooter models include Avenger, Discover, Kristal, Platina, and Pulsar. Bajaj Auto has the capacity to manufacture 400,000 three-wheelers per year and it exports a major part of it. The three-wheelers are used for both passenger transportation and light delivery. Bajaj's technology partner, Kawasaki Heavy Industries, has helped the company bring a number of bikes to the Indian market -- including the Kawasaki Bajaj Eliminator -- India's first heavy cruiser. Nearly 3 million units of Bajaj's products are annually distributed to more than 50 countries.

Two Wheeler Industry Overview

The Indian two-wheeler industry has witnessed spectacular growth in the last few years. The market dynamics of the industry has substantially changed with a majority of the customers preferring bikes to scooters and mopeds. This is primarily due to better fuel efficiencies, dynamics, looks and longer product lives of motorcycles. The motorcycle segment constitutes about 81.5% of the two wheeler market in India. It also contributes to three-fourths of the total exports in the two wheeler industry. (Exhibit 1) shows that Bajaj is the third largest player in this segment after Hero Motocorp and Honda.

The industry exhibits some degree of collusive behavior and thus represents an oligopolistic form of market structure. Product and brand differentiation are seen as the primary means of sustaining competitive advantage. In order to sustain brand equity, players spend large percentages of their revenues in advertising and brand building activities. The supply and distribution networks are decisive factors in staying competitive and normally need a huge capital investment. The two wheeler industry is capital intensive with large fixed cost requirements and new model introductions mandatory at frequent intervals in order to sustain the demand. This involves substantial design and R&D costs. Such high fixed costs can be offset only by achieving economies of scale. Moreover, developing a distribution channel is extremely difficult in a country like India. Therefore, it is difficult for a new player to enter this industry.

Domestic volume growth in 2012-13 slowest in last four years

The domestic two-wheeler (2W) industry recorded sales volumes of 13.8 million units in 2012-13, a growth of 2.9% over the previous year. This pace of expansion was significantly slower than the 13.7% volume CAGR posted by the industry in the last five years. In the past, Indias per capita real GDP growth at 8.6% (CAGR) over the six year period 2005-2011 had contributed substantially towards raising the standard of living of households, which in turn had been one of the key drivers of growth for the countrys automobile industry. But over 2011-12 and

2012-13, inflationary conditions, firm interest rates, rising petrol prices as well as weak monsoons adversely impacted disposable incomes causing a consumption squeeze. Over the long term, the trend in rising 2W penetration in households in the addressable income segment (already reached around 80%) is an added concern implying difficulty in sustaining penetration-driven growth over an extended time horizon. For the domestic 2W industry to revert closer to its historical growth trend line any time soon, the pie of total number of target households will need to expand. This in turn would depend on the pace of Indias economic growth recovery that could (a) boost personal disposable incomes and resultant consumption growth, (b) pull up the un-penetrated households from a low income segment to the next higher income segment, (c) further enable increase in the number multiple two-wheeler households, enabling penetration supported rise in 2W demand.

Exports growth was weak in 2012-13, but OEMs view international markets as a key growth frontier, going forward

Even on the exports front, the year 2012-13 was a period of weak growth for the industry with volumes at 2.0 million units declining by 0.7% over the previous year. This was consequent to hike in interest rate in several countries, increase in import duty in Sri Lanka, trade restrictions imposed by Argentina, dollar sales embargo with Iran and ban imposed on motorcycle taxis in Nigeria. This apart, the reduction in incentives available to 2W exporters, twice over the last 18 months, has persuaded Indian 2W OEMs to partially hike product prices in overseas markets, further contributing to pressure on sales volumes. The Indian OEMs on their part are taking measures such as introduction of warranties (an uncommon industry practice in several markets), providing of better training to mechanics and appointment of sub-dealers, besides chalking-out an entry strategy into new markets as a de-risking approach. From a medium term perspective, 2W exports continue to present a strong opportunity for industry participants particularly to countries in Africa and Latin America that have low 2W penetration, inadequate public transport infrastructure and adequate scope for both secular as well as market share gain-led growth. In select countries, 2W OEMs in India may also

have to budget investments in local assembly/ manufacturing units to exercise better control over demand-supply, branding, back-end infrastructure, currency risk, besides other tariff and other non-tariff hurdles.

Tepid demand for 100cc segment motorcycles weighs down industry growth

The deceleration in volume growth of the domestic 2W industry in 2012-13 was largely attributable to the motorcycles segment which grew by 0.1% over the previous year; even as the scooters segment posted 14.2% YoY expansion during this period, albeit on a smaller base. With this, the share of the scooters segment in the domestic 2W industry volumes increased to 21.2% in 2012-13 from 17.5% in 2010-11. Within the motorcycles segment, while the entry and executive segments comprising of 100cc bikes and the premium segment comprising of 150cc bikes experienced anaemic demand, the 125cc segment (contribution of 20% to domestic motorcycle sales in 2012-13) was a positive outlier recording a volume growth of 26.0% in 2012-13, benefitting both from new model launches as also the trend in up-trading and down-trading from the respective lower and upper price/ performance segments. Also, relatively low volume segments such as the niche occupied by Eicher Motors (Royal Enfield), besides other cruiser and superbikes from the stable of Harley Davidson, Kawasaki, Honda and Suzuki witnessed a strong growth in 2012-13, albeit on a low base.g

Industry maintains pricing discipline; new product launches and market share quest remain salient themes main salient themes

Amidst an environment of slackening demand, the 2W OEMs continue to shy away from offering discounts but on the contrary have undertaken two price increases in the last six months price increase of Rs. 300-4,000 undertaken in October 2012 and a further price increase of Rs. 500-1,500 undertaken in April 2013. Although select OEMs while launching new products have followed a penetrative pricing strategy, the discounts lingo has remained amiss, unlike the passenger vehicle industry.

Nevertheless, the 2W OEMs have been resorting to other forms of supply-side push in the form of attractive financing schemes, discounts on insurance for limited period etc. The OEMs had generally not resorted to these latter set of tools in 2009-10, 2010-11 and 2011-12 and their return to use as a promotional lever is indicative of the weak demand conditions. The last year and a half has been marked by greater traction in new product launches and focus on expansion of customer touch points by most 2W OEMs. In terms of market share, while Hero MotoCorp continues to remain the distant leader with a share of 42.9% in 201213, it saw its share erode by 221 basis points (bps) over the previous year. A large part of this market share set-back was caused by weakness in Hero MotoCorps sales volumes in the 100cc segment, even as the OEM expanded its market share in some of the other segments like the relatively faster growing scooters segment and the 125cc segment of bikes, by virtue of new product launches. The other two leading Indian OEMs too, namely, Bajaj Auto and TVS Motor experienced decline in their respective share in the domestic 2W market in 2012-13. Honda, however, continued to demonstrate steady gains in market share across the board and strengthened its market share from 14.9% in 2011-12 to 18.9% in 2012-13. Over the next two years, a large number of new models are likely to be introduced by various 2W OEMs across segments. This, in an environment of weak domestic demand, is likely to make the OEMs quest to expand volumes be accompanied by pressure on profitability.

Volumes (Units,Nos.) Domestic Motorcycles Scooters Mopeds Total Domestic Exports Motorcycles Scooters 2009-10 7,341,122 1,462,534 564,584 9,370,951 2009-10 1,102,978 30,125 2010-11 9,013,888 2,057,604 697,418 11,768,910 2010-11 1,474,678 50,646 2011-12 10,073,303 2,558,981 776,866 13,409,150 2011-12 1,871,595 94,440 2012-13 10,085,586 2,923,401 788,761 13,797,748 2012-13 1,866,549 91,084 2009-10 25.9% 27.4% 30.9% 26.0% 2009-10 13.6% 16.7%

YoY Growth (%)

2010-11 22.8% 40.7% 23.5% 25.6% 2010-11 33.7% 68.1% 201112 11.8% 24.4% 11.4% 13.9% 201112 26.9% 86.5% 2012-13 0.1% 14.2% 1.5% 2.9% 2012-13 -0.3% -3.6%

Mopeds Total Exports

6,905 1,140,058

6,295 1,531,619

9,076 1,975,111

3,308 1,960,941

-5.4% 13.5%

-8.8% 34.3%

44.2% 29.0%

-63.6% -0.7%

Core Competencies
Bajaj Auto is one of the oldest and the second largest two wheeler manufacutrer in India. In addition to coping with fierce competition from other players in the two wheeler segment, it also has to protect its market share from the impending onslaught of low price small cars such as Tata Nano. Holding on to its postion in such a challenging market environment requires innovative strategies and deep understanding of consumers needs. Bajaj Auto, sitting on surplus funds of over Rs 7,000 crore, was inundated with offers to diversify from telecommunications and power generation to software but stuck to core business of automobiles. Mr Bajaj said that any company, which wants to survive, must have quality and service orientation. The automotive sector was in its death throes with some of the major American automotive manufacturers on the verge of bankruptcy, he said. There are several reasons why Bajaj should concentrate on its core segment, i.e. greater than 125cc segment. With the introduction of DTS-i and DTS-Fi technology, Bajaj Auto Limited has led the way in pioneering technology along with style. The Profitability Pyramid in Exhibit 4 shows that the margin is very low in the sub 125cc segment but volumes are high. BAL wants to shift users from 100, 115cc segment to 125cc and higher. Thus Bajaj not only wants to play on the margins but also wants to increase the market share of 125cc bikes. With its recent launch of XCD 125cc, it has brought in competition for its own 100cc model, Platina by

delivering a bike that is better in all respects (including fuel efficiency).

Thus, we conclude that Bajaj wants to make a slow departure from 100cc segment. It has already stopped production of the Discover 125 and will continue production of the Platina until the demand for the 100cc remains. It has priced the XCD between the Platina and the Discover and in the future, would ideally wish to project the XCD 125 as its base model. RATIOS A relationship between various accounting figures, which are connected with each other, expressed in mathematical terms, is called accounting ratios. According to Kennedy and Macmillan, "The relationship of one item to another expressed in simple mathematical form is known as ratio." Analysis and interpretation of various accounting ratio gives a better understanding of the financial condition and performance of a business concern. RATIO ANALYSIS Ratio analysis is one of the techniques of financial analysis to evaluate the financial condition and performance of a business concern. Simply, ratio means the comparison of one figure to other relevant figure or figures. According to Myers, Ratio analysis of financial statements is a study of relationship among various financial factors in a business as disclosed by a single

set of statements and a study of trend of these factors as shown in a series of statements." Advantages and Uses of Ratio Analysis

To workout the profitability To workout the solvency Helpful in analysis of financial statement. Helpful in comparative analysis of the performance To simplify the accounting information To workout the operating efficiency Helpful for forecasting purposes

Limitations of Ratio Analysis Limited Comparability False Results Effect of Price Level Changes

Effect of window-dressing Absence of standard university accepted terminology

Main ratios Covered in this Project

For interpreting financial information, we include following underlined ratios

1. Profitability Ratios
These ratios tell us whether a business is making profits - and if so whether at an acceptable rate. The key ratios are: Ratio Gross Profit Margin Calculation [Gross Profit / Revenue] x 100 Interpretation This ratio tells us about the business's ability consistently to control its production costs or to manage the margins it makes on products it buys and sells.

Net Profit [Net Profit/Net Ratio Sales] x 100

Net Profit Ratio shows the relationship between Net Profit of the concern and its Net Sales. This ratio is helpful to determine the operational ability of the concern. While comparing the ratio to previous years ratios, the increment shows the efficiency of the concern & vice versa. ROCE is sometimes referred to as the "primary ratio"; it tells us what returns management has made on the resources made available to them before making any distribution of those returns.

Return on capital employed ("ROCE")

Net profit before interest & tax ("EBIT") / Capital Employed

2. Liquidity Ratios Liquidity ratios indicate how capable a business is of meeting its short-term obligations as they fall due: Ratio Current Ratio Calculation Interpretation

Current Assets / A simple measure that estimates whether the Current Liabilities business can pay debts due within one year from assets that it expects to turn into cash within that year. Not all assets can be turned into cash quickly or easily. Some - notably raw materials and other stocks - must first be turned into final product, then sold and the cash collected from debtors. The Quick Ratio therefore adjusts the Current Ratio to

Quick Quick Assets / Ratio (or Current Liabilities "Acid Test Ratio

eliminate all assets that are not already in cash (or "near-cash") form.

3. Solvency Ratio These ratios indicate the capability of a business to pay its long term obligations. Ratio DebtEquity Ratio Calculation Interpretation

Long Term Debt equity ratio shows the relationship between Debt/Shareholders, long-term debts and shareholders funds. It is also Funds known as External-Internal equity ratio.

4. Turnover Ratio A measure of the number of times a company's inventory is replaced during a given time period. A high turnover ratio is a sign that the company is producing and selling its goods or services very quickly. Ratio Calculation Interpretation Stock is a most important component of working capital. This ratio provides guidelines to the management while framing stock policy. It measures how fast the stock is moving through the firm and generating sales. It helps to maintain a proper amount of stock to fulfill the requirements of the concern. A proper inventory turnover makes the business to earn a reasonable margin of profit.

Inventory COGS / Average Turnover Stock Ratio

5. Market Ratio Ratio Calculation Comments A requirement of the London Stock Exchange - an important ratio. EPS measures the overall profit generated for each share in existence over a particular period.

Earnings Net Profit after per share Tax & Pref. Div. / ("EPS") No. of Equity Shares

Data Analysis & Interpretation

1. Gross Profit Ratio:Table Presentation

Years (31st March) 2009 2010 2011 2012 2013

Gross Profit

Net Sales

Gross Profit Ratio (%)

Avg. GPR

The GPR of Hero Honda increased till 2009-10. It indicates that the company has increased its sale as well as its rate of margin and on the other hand reduce its cost of production. But in 2010-11, GPR of the company declined because of % increase in production overheads comparatively more than the % increase in sales. While the GPR of Bajaj was decreasing consistently till 2008-09 due to the decrease in sales as well as the rate of margin and thereafter in 2009-10 & 201011, it increased and decreased respectively.

2. Net Profit Ratio

Years (31st March) 2009 2010 2011 2012 2013 Avg. NPR

Net Profit

Net Sales

Net Profit Ratio (%)

The NPR of Hero Honda was increasing continuously till 2009-10.It indicates that the company has reduced its operating as well as non operating expenses in these years but in 2010-11, it decreased due to increase in non operating expenses specially the burden of interest. On the other hand, NPR of Bajaj Auto Ltd. was decreasing continuously till 2008-09 as a result of increase in operating overheads of the company. Thereafter it was increasing which shows that the company focused upon reducing its cost of operations.

3. Return on Net Capital Employed(ROCE):-

Years (31st March)

Net Profit before Int & Tax

Net Capital Employed

ROCE (%)

2009 2010 2011 2012

2013 Avg. ROCE

4. Current Ratio Years (31st March) 2009 2010 2011 2012 Current Liabilities

Current Assets

Current Ratio

2013 Avg. CR

Current Ratio of Hero Honda was continuously decreasing till 2010-11 due to increase in current liabilities. On the other hand, Current Ratio of Bajaj Auto Ltd. is constant in first two years and in 2008-09 it increased due to increment in current assets. But thereafter, in 2009-10 it reduced due to decrease in current assets and increase in current liabilities and in 2010-11 it increased due to increase in current assets much more than increase in current liabilities.

5. Liquid Ratio Years (31st March) 2009 2010 2011 Liquid Assets Current Liabilities Liquid Ratio

2012 2013 Avg. LR

Liquid Ratio of Hero Honda was continuously decreasing till 2010-11 due to high increase in current liabilities in comparison to increase in liquid assets. On the other hand, Liquid Ratio of Bajaj Auto Ltd. decreased in 2007-08 as the result of high degree of decrement in liquid assets and in 2008-09, it increased due to increase in liquid assets was more than the increase in current liabilities. In 2009-10, it again decreased because of increase in current liabilities & simultaneous decrease in liquid assets and thereafter in 2010-11, it increased due to high degree of increment in liquid assets in comparison to increase in current liabilities.

6. Debt Equity Ratio (DER):-

Years (31st March) 2009

Long Term Loans

Shareholders Funds

Debt Equity Ratio

2010 2011 2012 2013 Avg. DER

The ITR of Hero Honda was decreased in 2007-08 as the increase in average stock was much more than the increase in COGS and 2008-09 onwards, it was increasing. On the other hand, ITR of Bajaj Auto Ltd. was decreasing upto the year 2008-09 due to the increase in average stock & then it was increasing.

7. Inventory Turnover Ratio(ITR):-

Years (31st March)

Cost Of Goods Sold

Average Stock

Inventory Turnover Ration

2009 2010 2011 2012 2013 Avg. ITR

The ITR of Hero Honda was decreased in 2007-08 as the increase in average stock was much more than the increase in COGS and 2008-09 onwards, it was increasing. On the other hand, ITR of Bajaj Auto Ltd. was decreasing upto the year 2008-09 due to the increase in average stock & then it was increasing.

8. Earnings Per Share(EPS):-

Years (as on 31st March) 2009 2010 2011 2012 2013 Avg. EPS

Earnings Per Share

On the other hand, EPS of Bajaj Auto Ltd. was highest in 2006-07 and thereafter it started declining till 2008-09 as there was decrease in Net Profit & increase in Share Capital but 2009-10 onwards it was increasing as there was increase in Net Profit.

Findings
From the comparison of various ratios between Hero Honda Motors Ltd. and Bajaj Auto Ltd., it can be concluded that Bajaj Auto Ltd. shows good performance during the last 5 years in comparative to Hero Honda Motors Ltd. The major findings are GPR & NPR:-

The GPR as well as NPR of Bajaj Auto Ltd. is considerably more than that made by Hero Honda. This implies that the operations of Bajaj Auto Ltd. are more profitable. Return on Capital Employed:In recent Years the ROCE of Bajaj Auto Ltd. is higher than that of Hero Honda which shows that the company is providing better returns to its shareholders as well as to its long term loan providers. Turnover:The ITR of Hero Honda Motors Ltd. is more than that of Bajaj Auto Ltd. which indicates that the company is able to convert their inventory into sales quickly. Liquidity:The Bajaj Auto Ltd. has the higher current ratio as well as liquid ratio than that of Hero Honda which indicates that Bajaj is comparatively more able to meet out its short term liabilities. EPS:Bajaj Auto Ltd. is good from the point of view of investors as its EPS is comparatively more than that of Hero Honda Motors Ltd. Debt Equity Ratio:The DER of Hero Honda is significantly low as compared to Bajaj which implies that they are not much dependent on the outside debts and rely more on owners funds.

Conclusion

On the basis of various ratios used, both the companies are doing fairly good but the performance of Bajaj Auto Ltd. is better than that of Hero Honda Motors Ltd. as its most of the ratios are higher than that of Hero Honda Motors Ltd. The shareholders of Bajaj Auto Ltd. are in much better position than those of Hero Honda Motors Ltd. On the basis of net profit ratio, debt equity ratio, return on capital employed etc., it can be said that Bajaj is able to provide better utilization of funds provided by the long term lenders. Similarly the short term lenders are more secure in Bajaj Auto Ltd. as it has high current ratio & liquid ratio than that of Hero Honda Motors Ltd.

Mar' 13 Sources of Funds Shareholders' Funds Share Capital

Mar' 12

Mar' 11

Mar' 10

Mar' 09

289.37

289.37

144.68

144.68

101.18

Reserves & Surplus Loan Funds Secured Unsecured Deferred Tax Liabilities Deferred Tax Assets Total Application of Funds Fixed Assets Gross Block Less : Depreciation Net Block Capital Work in Progress Technical know how Investments Current Assets, Loans & Advances Inventory Sundry Debtors Cash & Bank Balances Other Current Assets Loans & Advances Less : Current Liabilities & Provisions Current Liabilities Provisions Net Current Assets Miscellaneous Expenditure

7612.58 7901.95 71.27 301.62 197.70

(167.99)

5751.70 6041.07 12.98 1325.60 191.81 (190.12) 4268.61

1725.01 1869.69 1570 164.79 (160.60) 3443.88

1442.91 1587.59 6.95 1327.39 141.94 (130.96) 2932.91

5433.14 5534.32 22.46 1602.97 184.49 (110.32) 7233.92

5265.08

3390.88 1912.45 1478.43 69.86 1548.29 4.28 4795.20 547.28 362.76 556.49 216.42 1189.64 2872.59

3379.25 1899.66 1479.59 41.52 1521.11 4021.52 446.21 239.45 101.41 139.36 657.40 1583.83

3333.94 1807.91 1526.03 22.06 1548.09 16.26 1808.52 338.84 358.65 136.87 125.68 1365.23 2325.27

2984.15 1726.07 1258.08 34.74 1292.82 10.53 1857.14 349.61 275.31 56.07 79.95 888.77 1649.71

3174.41 1922.44 1251.97 286.7 1296.39 4.13 6447.53 309.70 529.83 83.48 36.22 2859.40 3818.63

Total

2426.65 1528.63 3955.28 (1082.69) 5265.08

2026.25 831.60 2857.85 (1274.02) 4268.61

1213.41 1224.15 2437.56 (112.29) 183.3 3443.88

1043.25 834.04 1877.29 (227.58) 2932.91

1498.97 2833.79 4332.76 (514.13) 7233.92

Balance Sheet
(In Rs. crores)

Profit & Loss A/c

(in Rs. Crore)
Particulars Mar' 13 Mar' 12 Mar' 11 Mar' 10 Mar' 09

Income Gross Sales Less : Excise Duty Net Sales Other Income 16931.53 933.41 15998.12 1701.17 17699.29 12118.08 609.58 11508.50 534.98 12043.48 9049.66 612.72 8436.94 495.32 8932.26 9689.95 1026.66 8663.29 505.55 9168.84 10606.09 1313.86 9292.23 783.82 10076.05

Expenditure Manufacturing & Other Expenses Depreciation Interest Profit for the Year before tax Provision for Taxation Current Deferred Fringe Benefit Profit after Tax Balance of Profit brought forward Balance available for Appropriation Appropriations Interim Dividend Proposed Dividend Tax on Dividend Transfer to General Reserve Balance carried to Balance Sheet 1157.47 187.77 334 2515.48 4194.72 578.73 96.12 170.27 854.99 1700.11 318.30 54.10 282.10 654.50 289.37 49.18 417.23 755.78 404.73 69.64 762.73 1237.10 3339.73 854.99 4194.72 13224.01 122.84 1.69 13348.54 4350.75 983 28.02 1700.11 1700.11 654.50 654.50 755.78 755.78 1237.10 1237.10 9328.42 136.45 5.98 9470.85 2411.13 716.14 (5.12) 7837.79 129.79 21.01 7988.59 958.09 300.90 (6.79) 9.48 7878.03 173.96 5.16 8057.15 1134.73 392.75 (17.32) 3.52 8184.45 190.26 5.34 8348 1728.05 501.36 (13.41) 3.00

Sources of funds Shareholders Funds Equity share capital 289.37 289.37 289.37 144.68 144.68

Share application money Preference share capital Reserves & surplus Loan funds Secured loans Unsecured loans Total Application of Funds Fixed assets Gross block Less : revaluation reserve Less : accumulated depreciation Net block Capital work-in-progress Investments Net current assets Current assets, loans & advances Less : current liabilities & provisions Total net current assets Miscellaneous expenses not written Total

7,612.58

5,751.70

4,620.85

2,783.66

1,725.01

71.27 7,973.22

97.48 6,138.55

23.53 301.62 5,235.37

12.98 1,325.60 4,266.92

1,570.00 3,439.69

3,828.85 2,024.42 1,804.43 293.55 6,430.48

3,425.94 1,914.33 1,511.61 343.15 4,882.81

3,395.16 1,912.45 1,482.71 149.34 4,795.20

3,379.25 1,899.66 1,479.59 120.84 4,021.52

3,350.20 1,807.91 1,542.29 106.48 1,808.52

3,950.16 4,505.40 -555.24 7,973.22

4,501.40 5,100.42 -599.02 6,138.55

5,358.19 6,550.07 -1,191.88 5,235.37

3,111.75 4,466.78 -1,355.03 4,266.92

2,401.45 2,602.35 -200.90 183.30 3,439.69