A STUDY ON

RATIO ANALYSIS AT AMARARAJA BATTERIES LIMITED (ARBL) A PROJECT REPORT

Submitted in partial fulfillment of the

requirement for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Under the Guidance of

S.SUJATHA M.B.A., M.Phil ASSISTANT PROFESSOR OF MANAGEMENT STUDIES

SRM UNIVERSITY

By

SUNEEL.R (Reg.No.35080623)

DEPARTMENT OF BUSINESS ADMINISTRATION SRM UNIVERSITY YEAR-2010

SCHOOL OF MANAGEMENT SRM UNIVERSITY Page1

SRM Nagar, Kattankulathur-603203 Phone: 044-27452270, 27417777, Fax: 044-27453903 [email protected], website:www.srmuniv.ac.in ________________________________________________________________________

BONAFIDE CERTIFICATE
Certified that this project report titled A STUDY ON RATIO ANALYSIS AT AMARARAJA BATTERIES LIMITED is the bonafide work of Mr.R.SUNEEL who carried out the research under my supervision.

Certified further, that to the best of my knowledge the work reported here in does not form part of any other Project report or dissertation on the basis of which a degree or award was conferred on an earlier occasion on this or any other candidate.

Signature of the supervisor

Signature of the HOD

DECLARATION

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I hereby declare that the Project Report entitled A STUDY ON RATIO

ANALYSIS AT AMARARAJA BATTERIES LIMITED(ARBL) is a record of independent research work submitted by me to SRM University, Chennai, for developing the real time experience as well as award the degree of Master of Business Administration and has been carried out during the period of my study at SRM UNIVERSITY, Chennai, Under the guidance of S.SUJATHA, Department of MBA.

PLACE: Chennai

(R.SUNEEL)

ACKNOWLEDGEMENT

I would like to express deepest gratitude and thanks to the Dr.JAYASREE SURESH, Head of the Department for her valuable support in doing this project. She has been a source of encouragement and guidance in all our endeavors.

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I would like to sincerely acknowledge thanks to Sri C.Ramachandra raju, Finance Manager of Amararaja Batteries limited, Mr.C.Ravi Costing Manager of Amararaja Batteries Limited for their moral support during the research work. I express our profound thanks to S.SUJATHA project guide, for her consistent encouragement and invaluable suggestion in completing this project, without his effort the completion of this project would be practically impossible.

It gives me great pleasure to acknowledge my indebtedness to my family Members for their substantial moral support and encouragement in my studies.

I would like to extend my sincere thanks to My Dearest Friends and also my classmates for their unnerving support in the completion of the work.

(R. SUNEEL)

TABLEOFCONTENTS
Chapters 1 TitleandTopics PageNo

INTRODUCTION Introduction
12 4 5 Page4

OBJECTIVES&METHODOLOGY Needofstudy Scopeofstudy

 Objectivesofstudy ReviewofLiterature ResearchMethodology Limitationsofstudy

3

6 719 20 21

COMPANYPROFILE

2229 3060 62 63 64

4 5

DATAANALYSISANDINTERPRETATION FINDINGS&SUGGESTIONS Findings Suggestions Conclusion

Annexure
BIBLOGRAPHY

6571 72

LISTOFTABLES
SI .NO
1 2 3 4 5 6 7 8 9 CURRENT RATIO QUICK RATIO CASH RATIO NETWORKING CAPITAL RATIO DEBT RATIO DEBT EQUITY RATIO INTEREST COVERAGE RATIO TOTAL LIABILITIES RATIO INVENTORY TURNOVER RATIO

PARTCULARS

PAGE.NO
31 33 35 36 37 39 41 42 43

Page5

10 11 12 13 14 15 16 17 18 19 20 21 22

DEBTORS TURNOVER RATIO FIXED ASSET TURNOVER RATIO CURRENT ASSET TURNOVER RATIO TOTAL ASSET TURNOVER RATIO WORKING CAPITAL TURNOVER RATIO NET ASSET TURNOVER RATIO CAPITAL TURNOVER RATIO CREDITOR TURNOVER RATIO GROSS PROFIT NET PROFIT OPERITING EXPENCES RATIO RETURN ON INVESTMENT RETURN ON EQUITY SHARE HOLDER FUND

45 46 48 49 50 51 52 53 54 56 57 59 60

LISTOFCHARTS
SI .NO
1 2 3 4 5 6 7 8 9 10 11 12 CURRENT RATIO QUICK RATIO CASH RATIO NETWORKING CAPITAL RATIO DEBT RATIO DEBT EQUITY RATIO INTEREST COVERAGE RATIO TOTAL LIABILITIES RATIO INVENTORY TURNOVER RATIO DEBTORS TURNOVER RATIO FIXED ASSET TURNOVER RATIO CURRENT ASSET TURNOVER RATIO

PARTCULARS

PAGE.NO
32 34 35 36 38 40 41 42 44 45 47 48

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13 14 15 16 17 18 19 20 21 22

TOTAL ASSET TURNOVER RATIO WORKING CAPITAL TURNOVER RATIO NET ASSET TURNOVER RATIO CAPITAL TURNOVER RATIO CREDITOR TURNOVER RATIO GROSS PROFIT NET PROFIT OPERITING EXPENCES RATIO RETURN ON INVESTMENT RETURN ON EQUITY SHARE HOLDER FUND

49 50 51 52 53 55 56 58 59 60

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INTRODUCTION

INTRODUCTION
ABOUTRATIOANALYSIS The ratio analysis is the most powerful tool of financial analysis. Several ratios calculated

from the accounting data can be grouped into various classes according to financial activity or function to be evaluated. DEFINITION:

The indicate quotient of two mathematical expressions and as The relationship between two or more things. It evaluates the financial position and performance of the firm. As started in the beginning many diverse groups of people are interested in analyzing financial information to indicate the operating and financial efficiency and growth of firm. These people use ratios to determine those financial characteristics of firm in which they interested with the help of ratios one can determine. The ability of the firm to meet its current obligations. Page8

The extent to which the firm has used its long-term solvency by borrowing funds. The efficiency with which the firm is utilizing its assets in generating the sales revenue. The overall operating efficiency and performance of firm. The information contained in these statements is used by management, creditors,

investors and others to form judgment about the operating performance and financial position of firm. Uses of financial statement can get further insight about financial strength and weakness of the firm if they properly analyze information reported in these statements. Management should be particularly interested in knowing financial strength of the firm to make their best use and to be able to spot out financial weaknesses of the firm to take suitable corrective actions. The further plans firm should be laid down in new of the firms financial strength and weaknesses. Thus financial analysis is the starting point for making plans before using any sophisticated forecasting and planning procedures. Understanding the past is a prerequisite for anticipating the future.

Need of study

Scope of study Objectives

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NEED OF THE STUDY

The prevalent educational system providing the placement training at an industry being a part of the curriculum has helped in comparison of theoretical knowledge with practical system. It has led to note the convergences and divergence between theory and practice.

The study enables us to have access to various facts of the organization. It helps in understanding the needs for the importance and advantage of materials in the organization, the study also helps to exposure our minds to the integrated materials management the various procedures, methods and technique adopted by the organization. The study provides knowledge about how the theoretical aspects are put in the organization in terms of described below

To pay wages and salaries. For the purchase of raw materials, spares and components parts. To incur day-to-day expenses. To meet selling costs such as packing, advertising. To provide credit facilities to customers. To maintain inventories and raw materials, work-in-progress and finished stock.

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 Scopeofthestudy

The scope of the study is limited to collecting financial data published in the annual reports of the company every year. The analysis is done to suggest the possible solutions. The study is carried out for 4 years (2006 10).

Using the ratio analysis, firms past, present and future performance can be analyzed and

this study has been divided as short term analysis and long term analysis. The firm should generate enough profits not only to meet the expectations of owner, but also to expansion activities.

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 OBJECTIVESOFSTUDY
1. To study and analyze the financial position of the Company through ratio analysis. 2. To suggest measures for improving the financial performance of organization. 3. To analyze the profitability position of the company. 4. To assess the return on investment. 5. To analyze the asset turnover ratio. 6. To determine the solvency position of company. 7. To suggest measures for effective and efficient usage of inventory.

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REVIEWOFLITERATURE

FINANCIALANALYSIS
Financial analysis is the process of identifying the financial strengths and weakness of the firm. It is done by establishing relationships between the items of financial statements viz., balance sheet and profit and loss account. Financial analysis can be undertaken by management of the firm, viz., owners, creditors, investors and others.

Objectivesofthefinancialanalysis

Analysis of financial statements may be made for a particular purpose in view. 1. To find out the financial stability and soundness of the business enterprise. 2. To assess and evaluate the earning capacity of the business 3. To estimate and evaluate the fixed assets, stock etc., of the concern. 4. To estimate and determine the possibilities of future growth of business.

5. To assess and evaluate the firms capacity and ability to repay short and long term loans

Partiesinterestedinfinancialanalysis
The users of financial analysis can be divided into two broad groups.

Internalusers
1. Financial executives 2. Top management

Externalusers
1. Investors 2. Creditor. 3. Workers 4. Customers 5. Government 6. Public

7. Researchers

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Significanceoffinancialanalysis
Financial analysis serves the following purpose:

Toknowtheoperationalefficiencyofthebusiness:
The financial analysis enables the management to find out the overall efficiency of the firm. This will enable the management to locate the weak Spots of the business and take necessary remedial action.

Helpfulinmeasuringthesolvencyofthefirm:
The financial analysis helps the decision makers in taking appropriate decisions for strengthening the short-term as well as long-term solvency of the firm.

Comparisonofpastandpresentresults:
Financial statements of the previous years can be compared and the trend regarding various expenses, purchases, sales, gross profit and net profit can be ascertained. Helpsinmeasuringtheprofitability:

Financial statements show the gross profit, & net profit.

Interfirmcomparison:
The financial analysis makes it easy to make inter-firm comparison. This comparison can also be made for various time periods.

BankruptcyandFailure:
Financial statement analysis is significant tool in predicting the bankruptcy and the failure of the business enterprise. Financial statement analysis accomplishes this through the evaluation of the solvency position.

Helpsinforecasting:

The financial analysis will help in assessing future development by making forecasts and preparing budgets.

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METHODSOFANALYSIS:
A financial analyst can adopt the following tools for analysis of the financial statements. These are also termed as methods of financial analysis. A. Comparative statement analysis B. Common-size statement analysis C. Trend analysis D. Funds flow analysis E. Ratio analysis

NATUREOFRATIOANALYSIS
Ratio Analysis is a powerful tool of financial analysis. A ratio is defined as "the indicated quotient of mathematical expression" and as "the relationship between two or more things". A ratio is used as benchmark for evaluating the financial position and performance of the firm. The relationship between two accounting figures, expressed mathematically, is known as a financial ratio. Ratio helps to summarizes large quantities of financial data and to make qualitative judgment about the firm's financial performance. The persons interested in the analysis of financial statements can be grouped under three head owners (or) investors who are desired primarily a basis for estimating earning capacity. Creditors who are concerned primarily with Liquidity and ability to pay interest and redeem loan within a specified period. Management is interested in evolving analytical tools that will measure costs, efficiency, liquidity and profitability with a view to make intelligent decisions.

STANDARDSOFCOMPARISON
The ratio analysis involves comparison for an useful interpretation of the financial statements. A single ratio in itself does not indicate favorable or unfavorable condition. It should be compared with some standard. Standards of comparison are: 1. Past Ratios 2. Competitor's Ratios 3. Industry Ratios 4. Projected Ratios Page15

PastRatios:Ratios calculated from the past financial statements of the same firm. Competitor's Ratios: Ratios of some selected firms, especially the most progressive and successful
competitor at the same point in time.

IndustryRatios:Ratios of the industry to which the firm belongs. ProjectedRatios:Ratios developed using the projected financial statements of the same firm.

TIMESERIESANALYSIS
The easiest way to evaluate the performance of a firm is to compare its present ratios with past ratios. When financial ratios over a period of time are compared, it is known as the time series analysis or trend analysis. It gives an indication of the direction of change and reflects whether the firm's financial performance has improved, deteriorated or remind constant over time.

CROSSSECTIONALANALYSIS
Another way to comparison is to compare ratios of one firm with some selected firms in the industry at the same point in time. This kind of comparison is known as the cross-sectional analysis. It is more useful to compare the firm's ratios with ratios of a few carefully selected competitors, who have similar operations.

INDUSTRYANALYSIS
To determine the financial conditions and performance of a firm. Its ratio may be compared with average ratios of the industry of which the firm is a member. This type of analysis is known as industry analysis and also it helps to ascertain the financial standing and capability of the firm & other firms in the industry. Industry ratios are important standards in view of the fact that each industry has its characteristics which influence the financial and operating relationships.

TYPESOFRATIOS
Management is interested in evaluating every aspect of firm's performance. In view of the requirement of the various users of ratios, we may classify them into following four important categories: 1. Liquidity Ratio 2. Leverage Ratio 3. Activity Ratio 4. Profitability Ratio

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3.1LiquidityRatio
It is essential for a firm to be able to meet its obligations as they become due. Liquidity Ratios help in establishing a relationship between cast and other current assets to current obligations to provide a quick measure of liquidity. A firm should ensure that it does not suffer from lack of liquidity and also that it does not have excess liquidity. A very high degree of liquidity is also bad, idle assets earn nothing. The firm's funds will be unnecessarily tied up in current assets. Therefore it is necessary to strike a proper balance between high liquidity. Liquidity ratios can be divided into three types: 3.1.1 Current Ratio 3.1.2 Quick Ratio 3.1.3 Cash Ratio

3.1.1CurrentRatio
Current ratio is an acceptable measure of firms short-term solvency Current assets includes cash within a year, such as marketable securities, debtors and inventors. Prepaid expenses are also included in current assets as they represent the payments that will not made by the firm in future. All obligations maturing within a year are included in current liabilities. These include creditors, bills payable, accrued expenses, short-term bank loan, income-tax liability in the current year. The current ratio is a measure of the firm's short term solvency. It indicated the availability of current assets in rupees for every one rupee of current liability. A current ratio of 2:1 is considered satisfactory. The higher the current ratio, the greater the margin of safety; the larger the amount of current assets in relation to current liabilities, the more the firm's ability to meet its obligations. It is a cured -and -quick measure of the firm's liquidity. Current ratio is calculated by dividing current assets and current liabilities.

3.1.2QuickRatio
Quick Ratio establishes a relationship between quick or liquid assets and current liabilities. An asset is liquid if it can be converted into cash immediately or reasonably soon without a loss of value. Cash is the most liquid asset, other assets that are considered to be relatively liquid asset and included in quick assets are debtors and bills receivables and marketable securities (temporary quoted investments). Current Ratio = Current Assets ________________ Current Liabilities

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Inventories are converted to be liquid. Inventories normally require some time for realizing into cash; their value also has a tendency to fluctuate. The quick ratio is found out by dividing quick assets by current liabilities. Current assets - Inventories _________________________ Current Liabilities

Quick Ratio =

Generally, a quick ratio of 1:1 is considered to represent a satisfactory current financial condition. Quick ratio is a more penetrating test of liquidity than the current ratio, yet it should be used cautiously. A company with a high value of quick ratio can suffer from the shortage of funds if it has slow- paying, doubtful and long duration outstanding debtors. A low quick ratio may really be prospering and paying its current obligation in time.

3.1.3CashRatio
Cash is the most liquid asset; a financial analyst may examine Cash Ratio and its equivalent current liabilities. Cash and Bank balances and short-term marketable securities are the most liquid assets of a firm, financial analyst stays look at cash ratio. Trade investment is marketable securities of equivalent of cash. If the company carries a small amount of cash, there is nothing to be worried about the lack of cash if the company has reserves borrowing power. Cash Ratio is perhaps the most stringent Measure of liquidity. Indeed, one can argue that it is overly stringent. Lack of immediate cash may not matter if the firm stretch its payments or borrow money at short notice.

Cash and bank balances + Current Investment Cash Ratio= -------------------------------------------------------------------Current Liabilities

3.2LEVERAGERATIOS
Financial leverage refers to the use of debt finance while debt capital is a cheaper source of finance: it is also a riskier source of finance. It helps in assessing the risk arising from the use of debt capital. Two types of ratios are commonly used to analyze financial leverage. 1. Structural Ratios & 2. Coverage ratios. Page18

Structural Ratios are based on the proportions of debt and equity in the financial structure of firm. Coverage Ratios shows the relationship between Debt Servicing, Commitments and the sources for meeting these burdens. The short-term creditors like bankers and suppliers of raw material are more concerned with the firm's current debt-paying ability. On the other hand, long-term creditors like debenture holders, financial institutions are more concerned with the firm's long-term financial strength. To judge the long-term financial position of firm, financial leverage ratios are calculated. These ratios indicated mix of funds provided by owners and lenders. There should be an appropriate mix of Debt and owner's equity in financing the firm's assets. The process of magnifying the shareholder's return through the use of Debt is called "financial leverage" or "financial gearing" or "trading on equity". Leverage Ratios are calculated to measure the financial risk and the firm's ability of using Debt to share holder's advantage.

Leverage Ratios can be divided into five types.

3.2.1 Debt equity ratio. 3.2.2 Debt ratio. 3.2.3 Interest coverage ratio 3.2.4 Proprietary ratio. 3.2.5 Capital gearing ratio

3.2.1Debtequityratio
It indicates the relationship describing the lenders contribution for each rupee of the owner's contribution is called debt-equity ratio. Debt equity ratio is directly computed by dividing total debt by net worth. Lower the debt-equity ratio, higher the degree of protection. A debt-equity ratio of 2:1 is considered ideal. The debt consists of all short term as well as long-term and equity consists of net worth plus preference capital plus Deferred Tax Liability. Long term Debts Debt Equity Ratio = ---------------------Share holder funds (Equities)

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 3.2.2Debtratio
Several debt ratios may used to analyze the long-term solvency of a firm. The firm may be interested in knowing the proportion of the interest-bearing debt in the capital structure. It may, therefore, compute debt ratio by dividing total total debt by capital employed on net assets. Total debt will include short and long-term borrowings from financial institutions, debentures/bonds, deferred payment arrangements for buying equipments, bank borrowings, public deposits and any other interest-bearing loan. Capital employed will include total debt net worth.

3.2.3InterestCoverageRatio

Debt Debt Ratio = ---------Equity

The interest coverage ratio or the time interest earned is used to test the firms debt servicing capacity. The interest coverage ratio is computed by dividing earnings before interest and taxes by interest charges. The interest coverage ratio shows the number of times the interest charges are covered by funds that are ordinarily available for their payment. We can calculate the interest average ratio as earnings before depreciation, interest and taxes divided by interest. EBIT Interest Coverage ratio = --------------Interest

3.2.4Proprietaryratio

The total shareholder's fund is compared with the total tangible assets of the company. This ratio indicates the general financial strength of concern. It is a test of the soundness of financial structure of the concern. The ratio is of great significance to creditors since it enables them to find out the proportion of share holders funds in the total investment of business. Net worth Proprietary Ratio = -------------------------------------x 100 Total tangible assets

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3.2.5Capitalgearingratio:
This ratio makes an analysis of capital structure of firm. The ratio shows relationship between equity share capital and the fixed cost bearing i.e., preference share capital and debentures. Equity capital Capital gearing ratio = ----------------------------------------------P.S capital +Debentures +Loans

3.3ACTIVITYRATIOS
Turnover ratios also referred to as activity ratios or asset management ratios, measure how efficiently the assets are employed by a firm. These ratios are based on the relationship between the level of activity, represented by sales or cost of goods sold and levels of various assets. The improvement turnover ratios are inventory turnover, average collection period, receivable turn over, fixed assets turnover and total assets turnover. Activity ratios are employed to evaluate the efficiency with which the firm manages and utilize its assets. These ratios are also called turnover ratios because they indicate the speed with which assets are being converted or turned over into sales. Activity ratios thus involve a relationship between sales and assets. A proper balance between sales and assets generally reflects that asset utilization.

Activityratiosaredividedintofourtypes:
3.3.1 Total capital turnover ratio 3.3.2 Working capital turnover ratio 3.3.3 Fixed assets turnover ratio 3.3.4 Stock turnover ratio

3.3.1Totalcapitalturnoverratio:This ratio expresses relationship between the amounts invested

in this assets and the resulting in terms of sales. This is calculated by dividing the net sales by total sales. The higher ratio means better utilization and vice-versa. Some analysts like to compute the total assets turnover in addition to or instead of net assets turnover. This ratio shows the firm's ability in generating sales from all financial resources committed to total assets. Sales Total assets turnover = ---------------------------Capital employed.

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3.3.2 Working capital turnover ratio: This ratio measures the relationship between working
capital and sales. The ratio shows the number of times the working capital results in sales. Working capital as usual is the excess of current assets over current liabilities. The following formula is used to measure the ratio: Sales Working capital turnover ratio = ------------------------------Working capital

3.3.3 Fixed asset turnover ratio: The firm may which to know its efficiency of utilizing fixed
assets and current assets separately. The use of depreciated value of fixed assets in computing the fixed assets turnover may render comparison of firm's performance over period or with other firms. The ratio is supposed to measure the efficiency with which fixed assets employed a high ratio indicates a high degree of efficiency in asset utilization and a low ratio reflects inefficient use of assets. However, in interpreting this ratio, one caution should be borne in mind, when the fixed assets of firm are old and substantially depreciated, the fixed assets turnover ratio tends to be high because the denominator of ratio is very low Net sales Fixed asset turnover ratio = ------------------------Fixed assets

3.3.4Stockturnoverratio
Stock turnover ratio indicates the efficiency of firm in producing and selling its product. It is calculated by dividing the cost of goods sold by the average stock. It measures how fast the inventory is moving through the firm and generating sales. The stock turnover ratio reflects the efficiency of inventory management. The higher the ratio, the more efficient the management of inventories and vice versa .However, this may not always be true. A high inventory turnover may be caused by a low level of inventory which may result if frequent stock outs and loss of sales and customer goodwill. Cost of goods sold Stock turnover ratio = -----------------------------Average stock

Average stock

Opening stock + Closing stock = -------------------------------------------2

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3.4PROFITABILITYRATIOS
A company should earn profits to survive and grow over a long period of time. Profits are essential but it would be wrong to assume that every action initiated by management of a company should be aimed at maximizing profits. Profit is the difference between revenues and expenses over a period of time. Profit is the ultimate 'output' of a company and it will have no future if it fails to make sufficient profits. The financial manager should continuously evaluate the efficiency of company in terms of profits. The profitability ratios are calculated to measure the operating efficiency of company. Creditors want to get interest and repayment of principal regularly. Owners want to get a required rate of return on their investment. Generally, two major types of profitability ratios are calculated: Profitability in relation to sales Profitability in relation to investment

ProfitabilityRatioscanbedividedintosixtypes:
3.4.1 Gross profit ratio 3.4.2 Operating profit ratio 3.4.3 Net profit ratio 3.4.4 Return on investment 3.4.5 Earns per share 3.4.6 Operating expenses ratio

3.4.1Grossprofitratio

First profitability ratio in relation to sales is the gross profit margin the gross profit margin reflects. The efficiency with which management produces each unit of product. This ratio indicates the average spread between the cost of goods sold and the sales revenue. A high gross profit margin is a sign of good management. A gross margin ratio may increase due to any of following factors: higher sales prices cost of goods sold remaining constant, lower cost of goods sold, sales prices remaining constant. A low gross profit margin may reflect higher cost of goods sold due to firm's inability to purchase raw materials at favorable terms, inefficient utilization of plant and machinery resulting in higher cost of production or due to fall in prices in market. Page23

This ratio shows the margin left after meeting manufacturing costs. It measures the efficiency of production as well as pricing. To analyze the factors underlying the variation in gross profit margin, the proportion of various elements of cost (Labor, materials and manufacturing overheads) to sale may studied in detail. Gross profit Gross profit ratio = ------------------------x 100 Net sales

3.4.2Operatingprofitratio This ratio expresses the relationship between operating profit and sales. It is worked out by
dividing operating profit by net sales. With the help of this ratio, one can judge the managerial efficiency which may not be reflected in the net profit ratio. Operating profit Operating profit ratio = ---------------------------x 100 Net sales

3.4.3Netprofitratio
Net profit is obtained when operating expenses, interest and taxes are subtracted from the gross profit. Net profit margin ratio established a relationship between net profit and sales and indicates management's efficiency in manufacturing, administering and selling products. This ratio also indicates the firm's capacity to withstand adverse economic conditions. A firm with a high net margin ratio would be in an advantageous position to survive in the face of falling selling prices, rising costs of production or declining demand for product This ratio shows the earning left for share holders as a percentage of net sales. It measures overall efficiency of production, administration, selling, financing. Pricing and tax management. Jointly considered, the gross and net profit margin ratios provide a valuable understanding of the cost and profit structure of the firm and enable the analyst to identify the sources of business efficiency / inefficiency.

Net Profit Net Profit Ratio = --------------------------- x 100 Net sales

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3.4.4 Return on investment: This is one of the most important profitability ratios. It indicates the
relation of net profit with capital employed in business. Net profit for calculating return of investment will mean the net profit before interest, tax, and dividend. Capital employed means long term funds. E.B.I.T Return on investment = ---------------------------------------- x 100 Capital employed

3.4.5Earningspershare
This ratio is computed by earning available to equity share holders by the total amount of equity share outstanding. It reveals the amount of period earnings after taxes which occur to each equity share. This ratio is an important index because it indicates whether the wealth of each share holder on a per share basis as changed over the period.

Net profit Earnings per share = ------------------------------------ x 100 Number of equity shares

3.4.6Operatingexpensesratio
It explains the changes in the profit margin ratio. A higher operating expenses ratio is unfavorable since it will leave a small amount of operating income to meet interest, dividends. Operating expenses ratio is a yardstick of operating efficiency, but it should be used cautiously. It is affected by a number of factors such as external uncontrollable factors, internal factors. This ratio is computed by dividing operating expenses by sales. Operating expenses equal cost of goods sold plus selling expenses and general administrative expenses by sales. Operating expenses Operating expenses ratio = ----------------------------- x 100 Sales

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ResearchMethodology

ResearchDesign In view of the objects of the study listed above an exploratory research design has been adopted. Exploratory research is one which is largely interprets and already available information and it lays particular emphasis on analysis and interpretation of the existing and available information. To know the financial status of the company. To know the credit worthiness of the company. To offer suggestions based on research finding.

DataCollectionMethods
PrimaryData Information collected from internal guide and finance manager. Primary data is first hand information. SecondaryData Company balance sheet and profit and loss account. secondary data is second hand information.

DataCollectionTools
To analyze the data acquire from the secondary sources Ratio AnalysisThe scope of the study is defined below in terms of concepts adopted and period under focus. First the study of Ratio Analysis is confined only to the Amarraja Batteries Limited. Secondly the study is based on the annual reports of the company for a period of 4 years from 2006-07 to 2009-10 the reason for restricting the study to this period is due time constraint.

LIMITATIONS
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The study was limited to only four years Financial Data. The study is purely based on secondary data which were taken primarily from Published annual reports of Amararaja batteries Ltd.,

There is no set industry standard for comparison and hence the inference is made on general standards.

The ratio is calculated from past financial statements and these are not indicators of future.

The study is based on only on the past records. Non availability of required data to analysis the performance. The short span of the time provided also one of limitations.

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Company profile

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COMPANYPROFILE
Amara Raja Batteries (ARBL) incorporated under the companies Act, 1956 in 13th February 1985, and converted into public Limited Company on 6th September 1990. The chairman and Managing Director of the company is Sri Gala Ramachandra Naidu, ARBL is a first company in India, which manufactures Values regulated Lead Acid (VRLA) Batteries. The main objectives of the company are a manufacturing of good quality of Sealed Maintenance Free (SMF) acid batteries. The company is setting up to Rs.1, 920 lakhs plant is in 185 acres in Karakambadi village, Renigunta Mandal. The project site is notified under B category. The company has the clear-cut policy of direct selling without any intermediate. So they have set up six branches and are operated by corporate operations office located in Chennai. The company has virtual monopoly in higher A.H.(Amp Hour) rating Market its product VRLA . It is also having the facility for industrial and automotive batteries. Amara Raja is 5 S Company and its aim are to improve the work place environment by using 5S techniques which is A systematic and rational approach to workplace organization and methodical house keeping with a sense of purpose, consisting of the following five elements CULTURE AND ENVIRONMENT Amara Raja is putting a number of HRD initiatives to foster a spirit of togetherness and a culture of meritocracy. Involving employees at all levels in building organizational support plans and in evolving our vision for the organization. ARBL encourages initiative and growth of young talent allows the organization to develop innovation solution and ideas. Benchmark pollution control measures, energy conversation measures, waste reduction schemes, massive green belt development programs, employee health monitoring and industrial safety programs have helped ARBL to take further environment management program. Amara Raja has now targeted to secure the ISO 14001 certification.

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QUALITY POLICY ARBLs main aim is to achieve customer satisfaction through the collective commitment of employees in design; manufacture and marketing of reliable power systems, batteries, allied products and services.

To accomplish above, ARBL focus on Establishing superior specifications for our products and processes. Employing state-of-the-art technologies and robust design principles. Striving for continuous improvements in process and product quality. Implementing methods and techniques to monitor quality levels. Providing prompt after sales service.

RESEARCH & DEVELOPMENT Specific areas in which the company carries out R&D are; New product development. Process technology up gradation. Application engineering for new market place. Quality improvement. Benefits derived as a result of above R&D, Developed 4v/200 AH batteries. Design optimization of higher AH batteries for DOT application. Design optimization of batteries 92v/1285 AH for TL/AC-Railway application. Formation cycle optimization results in reduced duration and rejection. Chemist curing cycle optimization. Manufacture of automobile battery for four-wheeler vehicles.

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FUTURE PLAN OF ACTION Commercialization of motorcycle batteries. Development of new range high integrity VRLA cell design. Establishment of product for new application segment. Studies on paste additives to enhance the battery performance. In-depth evaluation of metal surface treatment chemical to reduce the process cycle time. Validating alternative grades of propylene to conserve energy and to improve productivity. MILE STONES YEAR 1997 1997 1999 2002 Mile stone 100 crores turnover ISO-9001 Accreditation S-9000 Accreditation SO-14001 Certification

AWARDS The spirit of Excellence- Awarded by academy of fine arts, Tirupati. Best Entrepreneur of the year 1998-awarded by Hyderabad Management Association. Industrial Economist Business Excellence Award 1991- Awarded by the industrial Economist, Chennai. Excellence Award-by institution of economic studies (ES), New Delhi. Udyog Rattan Award- by institution of economic studies, New Delhi. QI CERTIFICATE 2002 - By FORD Company

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AMARA RAJA GROUP OF COMPANIES AMARA RAJA POWER SYSTEMS PRIVATE Ltd. (ARPSL), Karakambadi, Tirupati. MANGAL PRECISION PRODUCTS PRIVATE Ltd1. (MPPL1), Karakambadi, Tirupati. MANGAL PRECISION PRODUCTS PRIVATE Ltd2. (MPPL2), Petamitta, Chittoor. AMARA RAJA ELECTRONICS PRIVATE LIMITED (AREPL), Dighavamgham, Chittoor. GALLA FOODS PRIVATE LIMITED (GFPL), Puthalapattu Mandal, Chittoor. This ratio is calculated by dividing sales in to current assets. This ratio expressed the number of times current assets are being turn over in stated period. This ratio shows how well the current assets are being used in business. The higher ratio is showing that better utilization of the current assets another a low ratio indicated that current assets are not being efficiently utilized. INDUSTRIAL BATTERY DIVISION (IBD) Amara Raja has become the benchmark in the manufacturer of industrial batteries. India is one of the largest and fastest growth markets for industrial batteries in the world. Amara Raja is leading in the front, with an 80% market share is stand by VRAL batteries point of view. It is also having the facility for production plastic components. ARBL id the first company in India to manufacture VRLA (SMF) Batteries. The initial investment of the company has Rs.1920 lakhs; the total land is around 18 acres in Karambadi village, Renigunta Mandal. The project site is notified under B category. Capacity The capacity per the year 2005-2006 of IBD is 3, 70,000 cells per annum. Products Amara Raja being the first entrant in this industry and has the privilege of pioneering VRLA technology in India. Amara Raja has established itself as a reliable supplier of high quality products to major segments like Telecom, Railways and power.

2. PLATE PREPARATION Using lead oxide production in earlier stage positive and negative paste is prepared with addition of sulphuric acid and water. These pastes are applied to respective grids using industrial fasting machines. Page32

3. CALL ASSEMBLY Here positive and negative grids are separated by a sheet of fibreglass mat bush bars are welded and as assembled into a jar or container to form battery cells. Then these cells are assembled according to the customers specification into battery sets or systems. 4. FORMATION In this process cells are filled with the electrolyte (surphuric acid) and then the set is charged and discharged repeatedly, after final charging the battery comes out ready to be used. Competitors The Major competitors for Amara Raja Batteries are Exude industries Ltd, and GNB. AUTOMOTIVE BATTERY DIVISION (ABD) ARBL has inaugurated its new automotive plant at Karakambadi in Tirupati on September 24th, 2001. This plan is a part of the most completely integrated battery manufacturing facility in India with all critical components, including plastics sourced in-house from existing facilities on site. In this project, Amara Rajas strategic alliance partners Johnson Control Inc., of USA have closely worked technology and plant engineering. It is also having the facility for producing plastic components required for automotive batteries. Capacity With an existing production capacity of 5 lakhs units of automotive batteries, the new Greenfield plant will now be able to produce 1 million batteries per annum. This is the first phase in the enhancement of Amara Rajas production capacity, for this the company has invested Rs.45 crores and the next phase, at an additional cost of Rs.25 crores, for this the production capacity will be increase to 2 million units and the company has estimated to complete around 3 years, after that ARBL will become the single largest battery of manufacturer in Asia. The fiscal year 2005-2006s capacity Of ABD is 2.2 million numbers of batteries per year.

Products The products of ABD are Amaron Hi-way Amaron Harvest Amaron shield Amaron Highlife The plastic products of ABD arejars and jar covers.

Page33

Customers ARBL has prestigious OEM (Original Equipment Manufacture) clients like FORD, GENERAL MOTORS, DAEWOO MOTORS, MERCEDES BENZ, DAIMLER CHRYSLER, MARUTI UDYOG LTD., premier Auto Ltd., and recent acquired a preference supplier alliance with ASHOK LEYLAND, HINDUSTAN MOTORS, TELCO, MAHINDRA & MAHINDRA and SWARAJ MAZDA. COMPETITORS EXIDE PRESTOLITE AMCO. MAJOR USERS 1. RAILWAYS Train lighting air conditioning, diesel engine starting, signaling systems, control systems, emergency breaking systems, and telecommunications. 2. TELECOMMUNICATION Central office power plants, microwave repeaters station, RAX in public building, emergency lighting system at airports, fire alarm system etc., 3. POWER SYSTEMS Switch gear control systems, powerhouse control systems, rural street lighting etc. 4. UPS SYSTEM Back up power to computers in progress control systems in industry etc. 5. TRACTION Forklift trucks, earth moving machinery, mining locomotives and road vehicles etc. 6. PETROCHEMICALS Offshare and noshore oil exploration lighting systems, security systems etc. 7. DEFENCE Defence communication, aircraft and helicopter ground starting, stationary and mobile diesel engine starting etc.

Page34

PRODUCTION PROCESS The process for the production of lead acid batteries consists essentially of five operations described below 1. GRID CASTING In the process grids to hold the active materials are made. Battery grids are produced using microprocessor-casting machines with patented alloys. Different sizes of moulds are used to get the required size of grids. 2. PLATE PREPARATION Using lead oxide production in earlier stage positive and negative paste is prepared with addition of sulphuric acid and water. These pastes are applied to respective grids using industrial fasting machines. 3. CALL ASSEMBLY Here positive and negative grids are separated by a sheet of fibreglass mat bush bars are welded and as assembled into a jar or container to form battery cells. Then these cells are assembled according to the customers specification into battery sets or systems. 4. FORMATION In this process cells are filled with the electrolyte (surphuric acid) and then the set is charged and discharged repeatedly, after final charging the battery comes out ready to be used. 5. TESTING & INSPECTION Testing the battery is discharged to the customer it is tested for quality specifications.

Page35

Data analysis & Interpretation

Page36

DATAANALYSISANDINTERPRETATIONS
4.1LIQUIDITYRATIOS
4.1.1 CURRENT RATIO

The ratio between all current assets and all current liabilities; another way of expressing

liquidity. It is a measure of the firms short-term solvency. It indicates the availability of current assets in rupees for every one rupee of current liability. A ratio of greater than one means that the firm has more current assets than current claims against them.

Current Assets Current ratio = ---------------------------------------- Current Liabilities

Table4.1.1Currentratio S.No Year 1. 200607 200708 200809 200910 5,975,961,025 2,020,744,952 2.96 3,500,193,294 1,312,272,610 2.67 CURRENTASSETS 1,612,642,497 2,280,704,176

CURRENT LIABILITIES 638,958,266

CURRENTRATIO 2.52

2.

1,181,003,846 1.93

3.

4.

Page37

Graph4.1.1Current C ratio o

3 2 2.67 2.5 52 2.5 5 1.93

2.96

1.5 5

0.5 5

0 2006 607 200708 200 0809 200910

Interpre etation: rd norm for r current rat tio is 2:1. During the ye ear 2006 the ratio is 2.52 and it ha as The standar decreas sed to 1.93 during d the year y 2007 an nd increased to 2.67 in n 2008 and i it is increas sed to 2.67 in i the year r 2009 and it has incre eased to 2.96 in the yea ar 2010. Th he ratio abo ove was stan ndard excep pt in the year y 2008. So S the ratio was satisfa actory.

Page e38

4.1.2.Quickratio

Quick ratio establishes a relationship between quick, or liquid, assets and current liabilities. An asset is liquid if it can be converted into cash immediately or reasonably soon without a loss of value. Table4.1.2QuickRatio S.NO Year QUICKASSETS 1,171,683,584 1,708,741,955 2,578,479,879 CURRENTLIABILITIES 638,958,266 1,181,003,846 1,312,272,610 QUICKRATIO 1.83 1.45 1.96 Quick Ratio =

Current Assets Inventories _______________ Current liabilities

1 1 2 3. 4.

200607 200708 200809 200910

4,032,625,321

2,020,744,952

1.99

Page39

 Gra aph4.1.2Qu uickRatio

2 1.8 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 200607 200708 0 200 0809 200910

Interpre etation:

The T standard d norm for the quick ratio r is 1:1. Quick rati io is decrea ased in the year y 2007 to t
1.83 fro om 2.45. Then, T it decr reased to 1. .45 in the year y 2008. And A it has increased to o 1.96 in th he year 20 009 and the en it increa ased to 1.99 9 in the yea ar 2010. standard d norm so th he ratio was s satisfactor ry. However t the ratio wa as above th he

Page e40

 4.1.3.Cash C ratio o: The ratio between ca ash plus ma arketable sec curities and d current liab bilities.
Table4.1.3Cash hRatio S.N NO Year CASH H&BANK CU URRENT BAL LANCES LIA ABILITIES S 169,121, ,827 638,958,266 1 200607 Cas sh & Bank balances b Cash Ratio R = ___ __ ________ _____ Cu urrent liabiliti ies

CAS SH RATIO 0.26 0.17 0.20

1 2 3. 3 4 4.

200708 200809 200910

205,212, ,363 256,000, ,280 1,181,003 3,846 1,312,272 2,610

511,453, ,739

2,020,744 4,952

0.25 0

Gra aph4.1.3CashRatio
0.3 0.25 0.2 0.15 0.1 0.05 0 200607 200708 200809 200910

Interpre etation: In n all the above years th he absolute e quick ratio o is very low w. The stan ndard norm for absolut te quick ratio r is 1:2 2 the comp pany is fail led in keep ping suffici ient Cash & Bank Balances B an nd Marketa able Securit ties. Page e41

4.1.4 NET WOR RKING CA APITAL RA ATIO: The difference between b cu urrent assets s and curren nt
liabilitie es excluding short-term m bank borr rowing is ca alled net wo orking capita al or net cur rrent assets. . Table4.1.4Ne etworkingca apitalratio S.NO Year NETWOR RKING CAPIT TAL 1 200607 973,68 84,231 1,935,207,7 1 14 2 3 4 Graph4.1.4 4Networkin ngcapitalrat tio
0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 200607 200708 200809 200910

Net workin ng capital Net wo orking capit tal ratio = _____ __________ ___

Ne et assets

NET TWORKING G CAPITALRATIO O 0.50 0.50 0.57 0.61

200708 200809 200910

1,099,70 00,330 2,187,92 20,684 3,955,216 6,073

2,191,397,0 2 06 3,817,892,8 3 62 6,501,134,460 0

Interpre etation: t Working Capital C ratio o is 0.45 in 2006 2 but inc creased to 0 0.50 in the next n year i.e e., Net 2007. From F that year y the ratio o increased d to 0.50 in 2008 and fo ollowed in 2 2009 also and a increase ed to 0.61i in 2010 but condition of o business working w cap pital is not shortage. s

Page e42

4.2LEVERAGERATIOS
4.2.1DebtRatio If the firm may be Interested in knowing the proportion of the interest bearing debt in the capital structure.

Total Debt Debt ratio = ---------------------------------------- Total Debt + Net Worth Table4.2.1Debtratio S.No Year 1. 200607 200708 200809 200910 3,162,620,560 3,493,635,030 1.10 1,407,083,880 3,843,741,557 0.37 378,672,427 2,391,525,347 0.16 TOTAL DEBT 233,058,880 TOTAL DEBT + NET WORTH 2,039,907,551 DEBT RATIO 0.11

2.

3.

4.

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Gra aph4.2.1De ebtratio

1.2 1 0.8 0.6 4 0.4 0.2 0 200607 200708 0 200809 0.11 0.16 0.37 7

1.1 1

2009 910

Interpre etation: Th his ratio giv ves results relating to the capital structure of a firm. D Debt ratio is 0.08 in th he year 20 006 it incre eased to 0.11 & 0.16 in the cor rresponding g years 200 07 & 2008. Again it is i increase ed to 0.37 & 1.10 in the t year 20 009& 2010. From the above in fl luctuating trend t we ca an conclud de that the companys dependen nce on deb bt is increa asing. It is not better r position in i collection of debt.

Page e44

4.2.2Debtequityratio
Debt equity ratio indicates the relationship describing the lenders contribution for each rupee of the owners contribution is called debt- equity ratio. Debt equity ratio is computed by dividing Long term Liabilities divided by Equity. Lower debt equity ratio higher the degree of protection. A debt-equity ratio of 2:1 is considered ideal.

LONG TERM LIABILITIES Debt equity ratio = ---------------------------------------- EQUITY

Table4.2.2Debtequityratio S.No Year 1. 200607 200708 200809 200910 3,162,620,560 3,331,014,470 0.95 1,407,083,880 2,436,657,677 0.58 378,672,427 2,012,852,920 0.19 TOTALDEBT 233,058,880 NETWORTH D.E.RATIO 1,806,848,671 0.13

2.

3.

4.

Page45

Graph4.2.2Debtequityratio o
1 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 200607 200708 2 2008 09 200910 0.13 0.19 0.58 0.95

etation: Interpre Th he ratio give es results re elating to th he capital st tructure of a firm. Deb bt equity ratio is 0.09 in i theyear2006anditincreased dto0.13&0.19intheyear2007and2008.Intheyear2009 2 &201 10 the ratio has increasedto 0.5 58 & 0.95. We W can conclude that the t compan ny depends on the deb bt fundisincreasing.

Page e46

4.2.3 IN NTEREST CO OVERAGE RATIO R : The ratio shows s the numbe er of times the interest t charges ar re covered d by funds th hat are ordi inarily avail lable for the eir payment. E EBIT
Interest coverage ratio = __________ __________ ___ Int terest

Table4.2.3Interest coveragera atio S.NO O Ye ear EB BIT INTERE EST I.C.RATIO 1 2 3 4 200 0607 200 0708 200 0809 200 0910 137,259,58 83 1,448,427 1 94.76

386,899,738

13 3,435,515

28.80

742,908,74 41

30 0,924,293

24.02

1 1,588,690,29 99

129,308,874

12.29

Graph h4.2.3Intere estCoverage eratio

100 80 60 40 20 0

Interpre etation: Int terest cover rage ratio is s 07.56 in th he year 200 06. It is inc creased auto omatically to t

200607 0 200708 200809 2009 2 10

94.76 in n the year 2007. 2 But, it t is decrease ed to 28.80 in the year 2008 and d decreased to o 24.02 in th he year 20 009 and it again a decreased to 12.2 29 in the year y 2010. In I this posit tion outside e investors is i interested to invest t the money y in this com mpany. 4.2.4TO OTALLIABIL LITIESRATIO Page e47

Formu ula: Total Liabilities Total Assets T Total liabilit ties: Curren nt liabilities + Secured & Unsecure ed Loans. To otalAssets s:Fixedassets+In nvestments s+Curren ntassets Table4.2.4:TotalLiabilitiesra atio S.NO O 1 2 3 4 Graph4.2 2.4:TotalLia abilitiesratio o

Year 20 00607 20 00708 20 00809 20 00910

TOTAL L LIABILIT TIES 872,017 7,146 1,559,676 6,273 2,719,356 6,490 5,183,,365 5,512

OTALASSETS TO T.L.RAT TIO 2,8 809,793,132 2 3,6 692,541,508 8 5,2 292,107,128 8 8,6 683,886,037 7 0.3 0.4 0.5 0.6

0.6 0.5 0.4 0.3 0.2 0.1 0

2006072007 708200809 200910

Interpre etation:In the t years, 2006 & 2007 7 the total li iabilities is 0.2&0.3 0 but t in the year r 2008 the total lia abilities incr reased to 0.4 4 and the ra atio increase ed to 0.5 & 0.6 in the correspondin ng years of 2009 &2010. &

4.3 ACT TIVITY RATIOS R

Page e48

 4.3.1Inventoryturnoverratio
It indicates the firm efficiency of the firm in producing and selling its product. It is calculated by dividing the cost of goods sold by the average inventory.
Cost of goods sold Inventory turnover ratio =_____________________ Average inventory Cost of goods sold = Raw materials consumed +payments &benefits to employees +mfr, selling &admin expenses +duties & taxes Table4.3.1:Inventoryturnoverratio S.NO Year COSTOFGOODS AVGINVENTORY I.T.RATIO SOLD

1 2 O 3

200607 200708 200809 200910

2,228,549,828 3,499,805,230 5,324,665,192

374,102,223 506,460,567 746,837,818

5.96 6.91 7.13

9,782,463,974

1,432,524,559

6.83

Page49

Graph4.3.1:Inventor ryturnoverratio r

8 7 6 5 4 3 2 1 0 200 0607 200708 200809 20 00910

Interpre etation: I Inventory tu urnover rati io is 5.57 ti imes in the year 2006. But, it is i increased to 5.96 in th he year 20 007. Then, it i is increased to 6.91 in the year r 2008 and again increased to 7.13 3 in the yea ar 2009. But, B it is dec creased to 6.83 6 in the year y 2010. Inventory tu urn over rat tio increased d for year by b year tha at is compan ny production is also in ncreased. Su ubsequently y sales are a also increase ed.

Page e50

4.3.2Debtors D tu urnoverra atio: It is found fo out by y dividing th he credit sal les by avera age debtors. .
Debtor s turnover indicates i th he number of o times debtors turnov ver each yea ar.
Debtors s turnover ratio r = Sales S ________ _________

Sales = Gross Sale es

Average Debto ors

Table4.3.2 2:Debtorstu urnoverratio o S.NO Year AVERAGE E SALE ES DEBTORS 1 2 3 4 200607 200708 200809 200910 2,685,43 36,096 4,458,29 95,779 7,451,03 32,998 13,499,86 67,499 560,689,88 81 753,113,33 38 1,158,032,7 1 67 1,862,113,4 1 98

D.T.RATIO 4.79 5.92 6.43 7.25

Graph4.3.2:Debtorsturnover t ratio
8 7 6 5 4 3 2 1 0 200607

200708

200809

200910

Interpre etation:De ebtors turn nover ratio is i 4.31 time es in the yea ar 2006 and d it is increa ased to 4.7 79 times in n the year 2007 and inc creased to 5.92 5 times in n the year 2008 2 and it increased to o 6.43 time es &7.25 times t in the years 2009 9 &2010.

Page e51

4.3.3Fixedassetturnoverratio
The ratio is supposed to measure the efficiency with which fixed assets are employed a high ratio indicates a high degree of efficiency in asset utilization and a low ratio reflects inefficient use of assets. However, in interpreting this ratio, one caution should be borne in mind. When the fixed assets of the firm are old and substantially depreciated, the fixed assets turnover ratio tends to be high because the denominator of the ratio is very low.
Fixed Asset Turnover Ratio =

Net Sales
__________

Sales = Gross Sales Netfixedassets:Netblock

Net Fixed Asset

Table4.3.3:Fixedassetturnoverratio S.NO Year SALES 2,685,436,096 NETFIXED ASSETS 948,631,374 F.A.T.RATIO 2.83

1 2 3 4

200607 200708 200809 200910

4,458,295,779

1,043,547,559

4.27

7,451,032,998

1,568,304,581

4.75

13,499,867,499

1,888,508,475

7.15

Page52

 Graph4.3.3 3:Fixedasse etturnoverratio

8 7 6 5 4 3 2 1 0

20062007200708 200809 200910 0

Interpre etation: Fixed assets a turn over o ratio is 2.01 in the year 2006 and a it is inc creased to 2.83 in the year y 2007. In I the year r 2008 the ratio r is 4.27 and it continued up to 4.75 and to o 7.15 in th he years 200 09&2010.

Page e53

4.3.4Current C as ssetturnov verratio

Table4.3.4 4:Currentas ssetturnove erratio S.NO Year CURRENT SALE ES C.A.T T. RATIO AS SSETS 1 2 3 4 6,096 200607 2,685,436 200708 200809 200910 1,612,642,497 7 1.67 1.95 2.12
Curren nt asset turnover ratio o= Sales __ __________ ______

Cu urrent assets s

4,458,29 95,779 2,280,704,176 6 7,451,03 32,998 3,500,193,294 4

13,499,86 67,499 5,975,961,025 Gra aph4.3.4Cu urrentassets turnoverratio

2. .5 2 1. .5 1 0. .5 0 200607 0 200708 2008 809 200 0910

2.26

Interpre etation: Current assets a turnov ver ratio is 1.68 in th he year 2006 6 and it is d decreased to o 1.67 in th he year 20 007. But, in the year 20 008 the ratio o is increased to 1.95 and a it contin nuously inc creased up to t 2.26 in n the year 2010. increasi ing. Page e54 Fro om above we can co onclude tha at current a assets turno over ratio is i

4.3.5Total T asset tsturnove erratio This rati io ensures whether w the capital c emplo oyed has bee en effectively y used or no ot. This is als so
test of managerial m efficiency and a business s performanc ce. Higher total t capital turnover ra atio is alway ys required d in the intere est of the com mpany. = Total asset turno over ratio Table4.3 3.5:Totalassetturnoverratio S.NO Year SALE ES TOTAL T ASSE ETS 1 2 3 4 200607 200708 200809 200910 2,685,43 36,096 4,458,29 95,779 7,451,03 32,998 13,499,86 67,499 2,809,793,1 2 32 3,692,541,5 3 08 5,292,107,1 5 28 8,683,886,0 8 37 T.A A.T.RATIO 0.96 1.21 1.41 1.55
Sales ____ __________ ____

Ca apital emplo oyed Total as ssets: Fixed d assets + Current C asset ts + Investm ments

Graph4.3.5:Totalassetsturno overratio
1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 200 0607 20 00708 2 2008 09 200910

Interpre etation: Tota al assets rat tio is 0.83 in the year 2006 2 and it gradually increased i ye ear by year and reache ed to 1.55 in the year 2010.It mea ans Total Assets A is incr reased in ev very year.

Page e55

4.3.6Working W ca apitalturnoverratio o

A firm ma ay also like to relate ne et current assets or net working w cap pital to sales s. Working
capital turnover t ind dicates for one o rupee of o sales the company c ne eeds how m many net cur rrent assets. This rat tio indicates s whether or r not workin ng capital has h been effe fectively util lized marke et sales.

S Sales W Working cap pital turnov ver ratio = _________ __________ ____ Workin ng capital

Ta able4.3.6:Working W capi italturnover rratio S.NO O Ye ear NET CURRENT SALES ASSETS A 2 2,685,436,09 96 97 73,684,231 1 200 0607 4 4,458,295,77 79 1,09 99,700,330 2 200 0708 7 7,451,032,99 98 2,18 87,920,684 3 200 0809 13 3,499,867,4 499 3,95 55,216,073 4 200 0910 Graph G 4.3.6: :Workingca apitalturnov verratio
5 4 3 2 1 0

W W.C.T. RATIO 2.76 4.05 3.41 3.41

Interpre etation:

200607 0 200708 200809 2009 2 10

Wor rking capita al turnover ratio is 2.4 41 in the yea ar 2006 and d it is increased to 2.76 6 in the yea ar 2007. In n the year 2008 2 increas sed to 4.05 . Again it decreased d to o 3.41 in the e year 2009&2010. Th he higher the t working g capital turn nover the more m favorab ble for the company. c

4.3.7Net N assetturnover t ratio r

Page e56


Net Asset Turnover r Ratio =

Sales s
________ ___

Net Ass sets: Net Fi ixed Assets + Net Curr rent Assets

Ne et Asset

Table4.3. .7:Netasset tturnoverra atio S.NO O 1 2 3 4 Graph4.3 3.7:Netass setturnover rratio

Year 20 00607 20 00708 20 00809 20 00910

SALES S 2,685,436 6,096 4,458,295 5,779 7,451,032 2,998 13,499,867 7,499

NET TASSETS 1,9 935,207,714 4 1.39 2,1 191,397,006 6 2.03 3,8 817,892,862 2 1.95 6,5 501,134,460 0 2.08

N.A.T.RAT TIO

2.5

1.5

0.5

0
20062007200708200809200910

Interpre etation: Net Asse ets turnover r ratio is 1.1 11 in the ye ear 2006 and d it is incre eased to 1.39 in the yea ar 2007 an nd it is incre eased to 2.0 03 in the yea ar 2008. An nd, it decrea ased to 1.95 5 in the year r 2009 and it slightly y

inc creased

to

2.08

in

the

year

2010 0.

4.3.8Capital C tur rnoverrati io

Page e57

The rat tio obtains by b dividing sales with the t capital employed. e
S Sales
C Capital turn nover ratio = __________ __________ _ ___ Capital l Employed

Table4.3.8:capitalturnoverrat tio S.NO O 1 2 3 4 Year Y 200 0607 200 0708 200 0809 200 0910 SALES 2 2,685,436,0 096 4 4,458,295,7 779 7 7,451,032,9 998 13,499,867,4 499 CAPIT TALEMPLOY YED 2,1 170,834,866 6 2,5 511,537,662 2 3,9 979,834,518 8 6,6 663,141,085 5 C.T.RAT TIO 1.24 1.78 1.87 2.03

Graph4.3.8 8:capitaltur rnoverratio

2.5 2 1.5 1 0.5 0 200607

200708

200809

200910

Interpre etation: Capi ital turnove er ratio is 0.98 in the year y 2006 and it is incr reased 1.24 4 in the yea ar 2007 an nd it is incre eased to 1.7 78 in the yea ar 2008 and d again it is increased t to 1.87 in th he year 200 09 . Then, it increased d to 2.03 in the year 2010.

C turnover t ratio r 4.3.9Creditors

Page e58

The ra atio obtaine ed by dividing the annu ual credit pu urchases wit th average a accounts pa ayable.
P Purchases C Creditors tu urnover rat tio = _____ __________ ________ Avge.C Creditors

Table T 4.3.9:Creditors C tur rnoverratio S.NO O Ye ear AVERAGE A PURCHASE ES CR REDITORS 1 2 3 4 200 0607 200 0708 200 0809 200 0910 422,358,585 5 1,4 2 2,244,170,1 72 4,0 086,818,721 8,1 125,662,265 5 192,242,196 44 41,904,975 591,059,052 7,0 081,427,12

C.T.RATIO 7.4 5.1 6.9 11.47

Graph4.3.9 9:Creditorsturnoverratio
12 10 8 6 4 2 0 200607

200708

200809

200910

Interpre etation: Credito ors turnover r ratio is 6.1 in the yea ar 2006. It is increased to 7.4 in th he year 200 07 and it is i suddenly decreased to 5.1 in th he year 2008 8 and it sud ddenly incre eased to 6.9 9 in the yea ar 2009 bu ut increased d in the next t year 2010 to 11.47.

4.4PROFITAB P ILITYRATI IOS

Page e59

 4.4.1Grossprofitratio
This ratio shows that the margin left after meeting manufacturing costs. It measures the efficiency of production as well as pricing. Gross profit
Gross profit margin Ratio = ____________ X100 Net sales

Gross profit= Net sales-Cost of goods sold Cost of goods sold= Opening stock+ material consumed+ mfg .exp- closing stock Table4.4.1:Grossprofitratio S.NO 1 2 3 4 Year 200607 200708 200809 200910 Page60 GROSSPROFIT 456,886,268 958,490,549 2,126,367,806 3,717,403,516 SALES 2,685,436,096 4,458,295,779 7,451,032,998 13,499,867,499 G.P.RATIO(%) 17 21.5 28.5 27.5

 Graph4.4.1:Gross sprofitratio
30 0

25 5

R Ratio

0 200607 2 2007 08 200809 2009 910 5 10 0 15 5

20 0

Interpre etation: F From the abo ove we can n say that gr ross profit ratio is 16.2% % in the ye ear 2006 but t it increase ed to 17 % &21.5% in 2007& 2008 2 and again a it incr reased to 28.5% 2 in th he year 200 09 and it is i decreas sed to 27.5% in the year y 2010. The comp pany is ma aintaining p proper contr rol on trad de activitie es.

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4.4.2Net N profi itratio:Th his ratio also o indicates th he firm's cap pacity to with h stand adve erse economi ic
conditio ons. A firm with w a high net margin ratio would be in an ad dvantageous position to survive s in th he face fall ling selling prices, p rising costs of production or declining d dem mand for the product. Net pro ofit ratio= Net pro ofit ______ ___ X I00 Net sal les

Ta able4.4.2:Ne etprofitratio o S.NO Yea ar PROFITAFT TER SALES TAX 1 2 3 4 2006 607 2007 708 2008 809 2009 910 86,900,56 63 238,465,730 470,434,575 9,436,315, ,11 2,6 685,436,096 6 4,4 458,295,779 9 7,4 451,032,998 8 13,4 499,867,499 9 NETPROFIT MARGIN(%) 3.2 3 5.3 5 6.3 6 6.99 6

Graph4.4 4.2:Netprof fitratio

8 6 4 2 0 2 4 6 8 200 0607 200708 200809 200910

Interpre etation: 006 the net profit marg gin is 0.7 it t suddenly increased i to o 3.2% in th he year 200 07 During the year 20 because e of decreas sed in admin nistration an nd selling expenses. In n the next ye ear, it again n increased to t 5.3 in th he year 200 08 and it aga ain increased to 6.3 in 2009 2 and to o 6.99 in the e year 2010. .

4.4.3Operating O expensesratio
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 The Operating expenses ratio explains the changes in the profit margin ratio. A higher operating expense is unfavorable since it will leave a small amount of operating income to meet interest, dividends. Operating expenses X 100 Operating expenses ratio= __________________ Sales Operating expenses =Admin expenses+ Selling expenses Table4.4.3:Operatingexpensesratio S.NO
I 1

Year 200607 200708 200809 200910

OPERATING EXPENSES 376,620,609 550,626,756 767,790,197 1,388,735,777

SALES

O.E.RATIO

2,685,436,096 14.02 4,458,295,779 12.35 7,451,032,998 10.30 13,499,867,499 10.30

2 3 4

Graph4.4.3:Operatingexpensesratio Page63

16

Interpretation: Operating expenses ratio is 17.86%of sales in the year 2006 it decreased to 14.02% in the year 2007 and decreased in 2008 to12.35% and again it decreased in the next year 2009 to 10.30% and continued the same way. Then, it reached 10.30% in the year 2010.

4.4.4ReturnonInvestment The conventional approach of calculated ROI is to divide PAT by investment.

Return on investment(ROI)= EBIT _________________ Capital Employed Page64

 Table4.4.4:Returnoninvestment CAPITAL S.NO Year EBIT EMPLOYED 1 200607 137,259,583 2,170,834,866 2 3 4 200708 200809 200910 386,899,738 742,908,741 1,588,690,299 Graph4.4.4:ReturnonInvestment 0.25 0.2 0.15 0.1 0.05 0 2006 07 200708 2008 09 200910

R.O.I.RATIO 0.06 0.15 0.19 0.24

2,511,537,662 3,979,834,518 6,663,141,085

Interpretation: Return on Investment is very low in all years. But, in the year 2006, it reached to 6.51 due to less earnings.

4.4.6Returnonequityshareholdersfund The return on equity share holders fund explains about the return of share holders with they get on their investment.
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 Return on equity share holders fund=

Net profit _________________ Equity share holders fund

Table4.4.6:Returnonequityshareholder'sfund S.NO Year PROFITAFTER NETWORTH R.O.E.RATIO(%) TAX 1 2 3 4 200607 200708 200809 200910 86,900,563 238,465,730 470,434,575 943,631,511 1,806,848,671 2,012,852,920 2,436,657,677 3,331,014,470 4.8 11.8 19.3 28.33

Graph4.4.7:Returnonequityshareholder'sfund

30

Interpretation:

25 20 15 10 5 0 2006 07 2007 08 2008 09 2009 10

Return on equity in the year 2006 is 0.8 and it increased suddenly to 4.8 in the year 2007 and again it increased to 11.8 in the year 2008. Return on Equity of the company is at satisfactory level and then it increased to 19.3 in 2009 and again increased to 28.33 in 2010 .

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CHAPTER-5
Findings Suggestions Conclusion

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FINDINGS
Except in the year 2008, the company is maintaining current ratio as 2 and more, standard which indicates the ability of the firm to meet its current obligations is more. It shows that the company is strong in working funds management. The company is maintaining of quick assets more than quick ratio. As the company having high value of quick ratio. Quick assets would meet all its quick liabilities with out any difficulty. The company is failed in keeping sufficient cash & bank balances and marketable securities. In above all current assets and liabilities ratios are better that also it is double the normal position. Observe the absolute & super quick ratio the company cash performance is down position. In the year 2006 debt equity ratio is 0.08 (8%) but it is increased to 0.11 (11%) & 0.16(16%) in 2007 and 2008 increased every year. It shows that the company is losing its condition. Net working capital ratio is 0.45 in 2006 but also 0.50 in 2007. It is increased very high but condition of business working capital is not shortage . Debt Equity ratio is increasing every year. It indicates the company depends on the debt fund increasing. Total liabilities ratio is also increasing year by year. In the year 2006, the interest coverage ratio 7.56 which increased to 94.76 in the year 2007 and high fluctuations in the followed years. In this position, outside investors are interested to invest their money in this company. The company is declining of its coverage ratio to serve long term debts. Inventory turnover also increased for year by year that is company production is also increased. Subsequently sales are also increased. The net profit ratio of the company increasing over the study period. Hence the organization having the good control over the operating expenses. Page68

 SUGGESTIONS
The company has to increase the profit maximization and has to decrease the operating expenses. By considering the profit maximization in the company the earning per share, investment and working capital also increases. Hence, the outsiders are also interested to invest. The company should maintain sufficient cash and bank balances; they should invest the idle cash in marketable securities or short term investments in shares, debentures, bonds and other securities. The company must reduce its debtors collection period from 83 & 84 days to 40 days be adopting credit policy by providing discounts to the debtors. Return on investment is fluctuates every year. The company has to make efforts in increasing return on investments by reducing its administration, selling and other expenses. The company should increase its interest coverage ratio to serve long term debts. The net profit of the company is increasing over the study period. Hence the organization maintaining good control on all trees of expenses. The dividend per share has observed as raising trend over the study period, hence it may be suggested Amara Raja Batteries Limited should take key interest to maximize the share holder wealth by increasing dividend pay out. Page69

 Conclusion

Liquidity ratios, both current ratio and quick ratio are showing effectiveness in liquidity as in all the years current ratio is greater than the standard 2:1 and quick ratio is greater than the standard 1:1 ratio.

The firm is maintaining a low cash balance and marketable securities which means they done cash payments. Debt equity ratio, solvency ratio and interest coverage ratio are showing an average increase in the long term solvency of the firm. The proprietary ratio is showing an average increase which means, the shareholders have contribute more funds to the total assets. Average payment period of the firm is showing the credit worthiness of the firm to its suppliers. Fixed assets turnover ratio is showing that the firm needs lesser investment in fixed assets to generate sales. The increasing trend of current assets turnover ratio indicates that the firm needs more investment in current assets for generating sales. The gross profit ratio, net profit ratio is showing the increasing trends. The profitability of the firm the increasing

Operating ratio of the company has observed decreasing trend, hence it may be good control over the operating expenses. The interest that has to be paid is very less when compared to the sales. The firm is not utilizing the debt conservatively. The firm is retaining much of the earnings (based on dividend payout ratio) . The company financial performance is very good and also they will increase their business year by year by expanding their branches.

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CHAPTER-6

Annexure

Bibliography

Page71

 BALANCESHEETASAT31stMARCH2007
Schedule No.

Particulars SOURCES OF FUNDS Shareholders Funds Share Capital Reserves & Surplus Loan Funds Secured Loans Unsecured Loans Deferred Tax liability Total APPLICATION OF FUNDS Fixed Assets Gross Block Less: Depreciation Net Block Capital Work-in-Progress Investments Current Assets, Loans & Advances Inventories Sundry Debtors Cash & Bank Balances Loans, Advances & Deposits Other Current Assets Less: Current Liabilities & Provisions Liabilities Provisions Net Current Assets Misc. Expenditure

As at 31.03.2007 Rupees Rupees

As at 31.03.2006 Rupees Rupees

1 2

113,875,000 1,692,973,671 1,806,848,671

113,875,000 1,632,042,302 1,745,917,302 44,945,252 103,853,138 233,058,880 130,927,315 2,170,834,866 148,798,390 145,000,360 2,039,716,052

3 4 5

73,665,914 159,392,966

6 1,672,298,054 723,666,680 948,631,374 12,892,109 7 961,523,483 235,627,152 1,583,508,897 591,622,548 991,886,349 9,514,644 1,001,400,993 208,778,082

8 9 10 11 12

440,958,913 649,706,121 169,121,827 342,929,588 9,926,048 1,612,642,497

307,245,534 471,673,642 152,292,556 251,402,682 7,622,683 1,190,237,097

13 345,042,817 293,915,449 638,958,266 973,684,231 14 --162,283,498 198,416,622 360,700,120 829,536,977

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Total

2,170,834,866

2,039,716,052

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 MARCH 2007

Particulars INCOME Sales Other Income Increase / (Decrease) in stocks Total Expenditure Raw Material Consumed Payments & Benefits to Employees Mfg., Selling Admn., & Other Expenses Taxes & Licenses Interest Depreciation Total Profit Before Taxation Add: Excess provision of Income Tax Less: Tax Provision for earlier years Provision for Income Tax Provision for Wealth Tax Add: Excess provision for Dividend Tax Written Back Profit After Taxation Profit brought forward Year from Previous Profit available for appropriation Less: Transfer to General Reserve Proposed Dividend Dividend Tax Balance carried to Balance Sheet Basic Earnings per equity share

Schedule No.

Year Ended on 31.03.07 Rupees 2,368,057,275 63,043,449 71,015,819 2,502,116,543 1,382,962,610 170,091,901 494,265,237 181,230,080 1,448,427 136,307,132 2,366,305,387 135,811,156 -14,073,045 59,500,000 3,440,615 43,023 86,900,563 512,460,202 599,360,765 6,517,542 22,775,000 3,194,194 566,874,029 7.63

Year Ended on 31.03.06 Rupees 1,759,017,304 41,581,593 11,120,770 1,811,719,667 831,843,012 157,730,759 561,985,559 123,834,416 1,754,335 123,052,249 1,800,200,330 11,519,337 4,954,943 30,473,038 33,000,000 -49,721 13,897,597 518,882,390 532,779,987 1,050,000 17,081,250 2,188,535 512,460,202 1.22

15 16

17 18 19 20 21

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BALANCE SHEET AS AT 31 MARCH 2009

Particulars SOURCES OF FUNDS Shareholders Funds Share Capital Reserves & Surplus Loan Funds Secured Loans Unsecured Loans Deferred Tax liability Total APPLICATION OF FUNDS Fixed Assets Gross Block Less: Depreciation Net Block Capital Work-in-Progress Investments Current Assets, Loans & Advances Inventories Sundry Debtors Cash & Bank Balances Loans, Advances & Deposits Other Current Assets Less: Current Liabilities & Provisions Liabilities Schedule No. As at 31.03.2009 Rupees Rupees As at 31.03.2008 Rupees Rupees

1 2

113,875,000 2,322,782,677 2,436,657,677

113,875,000 1,898,977,921 2,012,852,921 189,001,189 216,407,580 1,407,083,880 136,092,961 3,979,834,518 405,408,769 120,012,315 2,538,274,005

3 4 5

1,074,874,049 332,209,831

6 2,577,786,073 1,009,481,492 1,568,304,581 61,667,597 7 1,629,972,178 161,941,656 1,907,116,068 863.568,510 1,043,547,558 48,149,118 1,091,696,676 320,140,656

8 9 10 11 12

921,713,415 1,459,544,977 256,000,280 859,824,054 3,110,568 3,500,193,294

571,962,221 856,520,556 205,212,363 634,750,549 12,035,439 2,280,481,128

13 735,304,583 673,895,907

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Provisions Net Current Assets Misc. Expenditure Total 14

576,968,027 1,312,272,610 2,187,920,684 -3,979,834,518

480,148,548 1,154,044,455 1,126,436,673 -2,538,274,005

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 MARCH 2009

Particulars INCOME Sales Other Income Increase / (Decrease) in stocks Total Expenditure Purchase Of Finished Goods Raw Material Consumed Payments & Benefits to Employees Mfg., Selling Admn., & Other Expenses Taxes & Licenses Interest Depreciation Total Profit Before Taxation Add: Excess provision of Income Tax Less :Tax Provision for -Current Tax Including Deferred tax, Earlier Tax, Wealth tax, Fringe benefits tax Profit After Taxation Profit brought forward Year from Previous Profit available for appropriation Less: Transfer to General Reserve Proposed Dividend Dividend Tax Balance carried to Balance Sheet

Schedule No.

Year Ended on 31.03.09 Rupees 5,958,016,404 97,738,804 181,845,189 6,237,600,397 1,190,212 3,937,812,454 265,997,094 1,093,657,443 26,007,989 30,924,293 170,026,464 5,525,615,949 711,984,448 --

Year Ended on 31.03.08 Rupees 3,636,709,293 72,509,746 41,637,449 3,750,856,488 4,353,496 2,229,601,146 207,269,383 760,841,717 14,881,894 13,435,515 147,009,114 3,377,392,265 373,464,223 10,915,000

15 16

17 18 19 20 21

241,549,873

145,913,493

470,434,575 749,031,694 1,219,466,269 47,043,458 39,856,250 6,773,570 1,125,792,991

238,465,730 566,874,029 805,339,759 23,846,573 28,468,750 3,992,742 749,031,694

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Basic Earnings per equity share

41.31

20.94

BALANCE SHEET AS AT 31 MARCH 2010

Particulars SOURCES OF FUNDS Shareholders Funds Share Capital Reserves & Surplus Loan Funds Secured Loans Unsecured Loans 3 4 1,074,874,049 332,209,831 1,407,083,880 136,092,961 3,979,834,518 2,266,545,502 896,075,058 3,162,620,560 169,506055 6,663,141,085 Schedule No. As at 31.03.2009 Rupees Rupees As at 31.03.2010 Rupees Rupees

1 2

113,875,000 2,322,782,677 2,436,657,677

113,875,000 3,217,139,470 3,331,014,470

Deferred Tax liability Total APPLICATION OF FUNDS Fixed Assets Gross Block Less: Depreciation Net Block Capital Work-in-Progress Investments Current Assets, Loans & Advances Inventories Sundry Debtors Cash & Bank Balances Loans, Advances & Deposits

6 2,577,786,073 1,009,481,492 1,568,304,581 61,667,597 7 1,629,972,178 161,941,656 3,105,843,108 1,217,334,633 1,888,508,475 657,409,912 2,545,918,387 162,006,625

8 9 10 11

921,713,415 1,459,544,977 256,000,280 859,824,054

1,943,335,704 2,264,682,019 511,453,739

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Other Current Assets Less: Current Liabilities & Provisions Liabilities Provisions Net Current Assets Misc. Expenditure Total

12

3,110,568 3,500,193,294

1,248,478,477 8,011,086 5,975,961,025

13 735,304,583 576,968,027 1,312,272,610 2,187,920,684 14 -3,979,834,518 1,027,373,819 99,371,133 2,020,744,952 3,955,216,073 -6,663,141,085

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 MARCH 2010

Particulars INCOME Sales Other Income Increase / (Decrease) in stocks Total Expenditure Purchase Of Finished Goods Raw Material Consumed Payments & Benefits to Employees Mfg., Selling Admn., & Other Expenses Taxes & Licenses Interest Depreciation Total Profit Before Taxation Add: Excess provision of Income Tax Less :Tax Provision for -Current Tax Including Deferred tax, Earlier Tax, Wealth tax, Fringe benefits tax Profit After Taxation Profit brought forward Year from Previous Profit available for appropriation

Schedule No.

Year Ended on 31.03.09 Rupees 5,958,016,404 97,738,804 181,845,189 6,237,600,397 1,190,212 3,937,812,454 265,997,094 1,093,657,443 26,007,989 30,924,293 170,026,464 5,525,615,949 711,984,448 --

Year Ended on 31.03.10 Rupees 10,833,256,904 256,100,643 582,065,982 11,671,423,529 6,378,425 7,794,794,675 408,078,078 1,579,591,221 49,538,561 129,308,874 244,452,070 10,212,042,104 1,459,381,425

15 16

17 18 19 20 21

241,549,873

523,262,294

470,434,575 749,031,694 1,219,466,269

943,631,511 1,125,792,991 2,069,424,502

Page77

Less: Transfer to General Reserve Proposed Dividend Dividend Tax Balance carried to Balance Sheet Basic Earnings per equity share

47,043,458 39,856,250 6,773,570 1,125,792,991 41.31

94,363,151 39,856,250 6,773,570 1,928,431,531 82.87

BIBLOGRAPHY
1. I.M.Pandey 2. M.Y.Khan & P.K.Jai 3. S.P. Jain & K.L. Narang 4. K.Rajeswara rao & G. Prasad 5. P.Kulakarni : : : : : Financial Management Financial Management Cost & Management accounting Accounting & Finance Financial Management

Web-sites: www.google.com www.amaron.co.in

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