Financial Analysis on GOPAL GROUP Group

Submitted to Prof. D.V Ramana

Submitted by Mani Tiwari (25) Mayank Agarwal (2 ) Medi!etty Srikant" (2#)

Table of $ontent! %

&. 2. .. -. 5.

'(e)uti*e Summary++++++++.,'n*ironmental Analy!i!++++++...,5 T"e /ndian 0M$1 /ndu!try+++++..,# $om2any 3*er*iew++++++++.&, 0SA4 13PA5 1R36P 5imited+++++++++&2 . 0SA4 /nter $om2any Analy!i!++++.27 #. Du8Pont Analy!i!+++++++++.-2 7. ')onomi) Value Addition++++++-9. A))ounting Poli)ie!++++++++..&,. A22endi(++++++++++++..5,

A$:;3<5'D1'M';T
There is joy in work. There is no happiness except in the realization that we have accomplished something -Henry Ford T"e making of any 2ro=e)t re>uire! )ontribution from many 2eo2le? rig"t from in)e2tion till it! )om2letion. /n our )a!e al!o? t"ere "ad been a few 2eo2le w"o "a*e made t"i! "a22en. /t wa! not only learning but al!o an enri)"ing e(2erien)e. <e would like to t"ank Prof. Ramana for e(2laining t"e )on)e2t! of 0inan)ial A))ounting to u!? for being a !our)e of in!2iration and for t"e *aluable !ugge!tion! 2ro*ided t"roug"out. @i! )on!tant follow8u2! and re!ult orientation en!ured t"at we !u))e!!fully meet t"e deadline!. T"e making of any 2ro=e)t re>uire! )ontribution from many 2eo2le? rig"t from in)e2tion till it! )om2letion. /n our )a!e al!o? t"ere "ad been a few 2eo2le w"o "a*e made t"i! "a22en. /t wa! not only learning but al!o an enri)"ing e(2erien)e. <e t"ank our )olleague! and friend! for 2ro*iding )on!tant en)ouragement and "el2. 0inally? we are grateful to our familie! for t"eir moral !u22ort and under!tanding. Teachers open the door, but you must enter by yourself 8 $"ine!e Pro*erb

&. '(e)uti*e Summary

T"e 2ro=e)t a!!igned to u! wa! to !tudy t"e finan)ial "ealt" of any organiAation in t"e )ountry. <e de)ided to )"oo!e one of /ndiaB! bigge!t )om2anie! in a !e)tor t"at "a! ra2idly grown o*er t"e la!t few year! and a )om2any w"ere leader! like Mr. C.$. Dewe!"war are made? or rat"er? a )om2any t"at "a! been made my Mr. Dewe!"war. T"roug" t"i! re2ort? we try and analyAe t"e en*ironment in w"i)" 13PA5 1R36P 5imited i! o2erating. T"roug" a t"oroug" en*ironment? indu!try and )om2any analy!i!? we aim to under!tand t"e e(ternal fa)tor! influen)ing t"e )om2any and it! de)i!ion making. 5ater? we try and e*aluate t"e *ariou! ratio! to a22re)iate t"eir im2a)t on )om2anyB! 2erforman)e o*er t"e la!t t"ree year!. A Du2ont analy!i! i! al!o done to )"e)k t"e )redibility of )om2any a! 2er !"are"older!? finan)ial analy!t! and ot"er mutual fund!. T"e finan)ial !tatement! of la!t t"ree year! are identified? !tudied and inter2reted in lig"t of )om2anyB! 2erforman)e. $riti)al de)i!ion! of di!tributing di*idend!? /!!ue of bonu! Debenture! and ot"er )urrent new! are analyAed and t"eir im2a)t on t"e bottom line of t"e )om2any i! a!!e!!ed. A! a ben)"mark? we al!o analyAe *ariou! )om2onent! of t"e )om2any *i!8D8*i! ot"er )om2etitor! in t"e !ame !egment. 0inally? we al!o !tudy t"e a))ounting 2oli)y of t"e )om2any i! al!o !tudied wit" re!2e)t to *aluation of 0i(ed A!!et!? /n*entory? /n*e!tment! and 'm2loyee related liabilitie! to end wit" t"e amount of ')onomi) Value Added by t"e 2layer! in t"at !egment for t"e 0C 2,,#.

2. 'n*ironmental Analy!i!
<ell8e!tabli!"ed di!tribution network!? inten!e )om2etition between t"e organiAed and unorganiAed !egment! )"ara)teriAe t"e 0M1$ !e)tor. /t i! e(2e)ted to grow by o*er ,E by 2,&,. T"at will tran!late into an annual growt" of &,E o*er a 58year 2eriod. /t "a! been e!timated t"at 0M$1 !e)tor will ri!e from around R! 5 ?5,, )rore! in 2,,5 to R! 92?&,, )rore! in 2,&,. @air )are? "ou!e"old )are? male grooming? female "ygiene? and t"e )"o)olate! and )onfe)tionery )ategorie! are e!timated to be t"e fa!te!t growing !egment!? !ay! an @SF$ re2ort. T"oug" t"e !e)tor witne!!ed a !lower growt" in 2,,282,,-? it "a! been able to make a fine re)o*ery !in)e t"en. 0or e(am2le? /ndian Toba))o $om2any 5imited (13PA5 1R36P) "a! !"own a "ealt"y growt" in t"e la!t >uarter. An e!timated double8 digit growt" o*er t"e ne(t few year! !"ow! t"at t"e good time! are likely to )ontinue. Growth Prospects <it" t"e 2re!en)e of &2.2E of t"e world 2o2ulation in t"e *illage! of /ndia? t"e /ndian rural 0M$1 market i! !omet"ing no one )an o*erlook. /n)rea!ed fo)u! on farm !e)tor will boo!t rural in)ome!? "en)e 2ro*iding better growt" 2ro!2e)t! to t"e 0M$1 )om2anie!. Fetter infra!tru)ture fa)ilitie! will im2ro*e t"eir !u22ly )"ain. 0M$1 !e)tor i! al!o likely to benefit from growing demand in t"e market. Fe)au!e of t"e low 2er )a2ita )on!um2tion for almo!t all t"e 2rodu)t! in t"e )ountry? 0M$1 )om2anie! "a*e immen!e 2o!!ibilitie! for growt". And if t"e )om2anie! are able to )"ange t"e mind!et of t"e )on!umer!? i.e. if t"ey are able to take t"e )on!umer! to branded 2rodu)t! and offer new generation 2rodu)t!? t"ey would be able to generate "ig"er growt" in t"e near future. /t i! e(2e)ted t"at t"e rural in)ome will ri!e in 2,,#? boo!ting 2ur)"a!ing 2ower in t"e )ountry!ide. @owe*er? t"e demand in urban area! would be t"e key growt" dri*er o*er t"e long term. Al!o? in)rea!e in t"e urban 2o2ulation? along wit" in)rea!e in in)ome le*el! and t"e a*ailability of new )ategorie!? would "el2 t"e urban area! maintain t"eir 2o!ition in term! of )on!um2tion. At 2re!ent? urban /ndia a))ount! for E of total 0M$1 )on!um2tion? wit" rural /ndia a))ounting for t"e remaining .-E. @owe*er? rural /ndia a))ount! for more t"an -,E )on!um2tion in ma=or 0M$1 )ategorie! !u)" a! 2er!onal )are? fabri) )are? and "ot be*erage!. /n urban area!? "ome and 2er!onal )are )ategory? in)luding !kin )are? "ou!e"old )are and feminine "ygiene? will kee2 growing at relati*ely attra)ti*e rate!. <it"in t"e food! !egment? it i! e!timated t"at 2ro)e!!ed food!? bakery? and dairy are long8term growt" )ategorie! in bot" rural and urban area!.

T"e following fa)tor! make /ndia a )om2etiti*e 2layer in 0M$1 !e)tor4 Availability of raw materials Fe)au!e of t"e di*er!e agro8)limati) )ondition! in /ndia? t"ere i! a large raw material ba!e !uitable for food 2ro)e!!ing indu!trie!. /ndia i! t"e large!t 2rodu)er of li*e!to)k? milk? !ugar)ane? )o)onut? !2i)e! and )a!"ew and i! t"e !e)ond large!t 2rodu)er of ri)e? w"eat and fruit! G*egetable!. /ndia al!o 2rodu)e! )au!ti) !oda and !oda a!"? w"i)" are re>uired for t"e 2rodu)tion of !oa2! and detergent!. T"e a*ailability of t"e!e raw material! gi*e! /ndia t"e lo)ation ad*antage. Low cost labor 5ow )o!t labor gi*e! /ndia a )om2etiti*e ad*antage. /ndiaH! labor )o!t i! among!t t"e lowe!t in t"e world? after $"ina G /ndone!ia. 5ow labor )o!t! gi*e t"e ad*antage of low )o!t of 2rodu)tion. Many M;$H! "a*e e!tabli!"ed t"eir 2lant! in /ndia to out!our)e for dome!ti) and e(2ort market!. Presence across value chain /ndian )om2anie! "a*e t"eir 2re!en)e a)ro!! t"e *alue )"ain of 0M$1 !e)tor? rig"t from t"e !u22ly of raw material! to 2a)kaged good! in t"e food82ro)e!!ing !e)tor. T"i! bring! /ndia a more )o!t )om2etiti*e ad*antage

.. T"e /ndian 0M$1 /ndu!try

T"e /ndian 0M$1 !e)tor i! t"e fourt" large!t in t"e e)onomy and "a! a market !iAe of 6SI&..& billion. <ell8e!tabli!"ed di!tribution network!? a! well a! inten!e )om2etition between t"e organi!ed and unorgani!ed !egment! are t"e )"ara)teri!ti)! of t"i! !e)tor. 0M$1 in /ndia "a! a !trong and )om2etiti*e M;$ 2re!en)e a)ro!! t"e entire *alue )"ain. /t "a! been 2redi)ted t"at t"e 0M$1 market will rea)" to 6SI ...- billion in 2,&5 from 6S I billion &&. in 2,,.. T"e middle )la!! and t"e rural !egment! of t"e /ndian 2o2ulation are t"e mo!t 2romi!ing market for 0M$1? and gi*e brand maker! t"e o22ortunity to )on*ert t"em to branded 2rodu)t!. Mo!t of t"e 2rodu)t )ategorie! like =am!? toot"2a!te? !kin )are? !"am2oo!? et)? in /ndia? "a*e low 2er )a2ita )on!um2tion a! well a! low 2enetration le*el? but t"e 2otential for growt" i! "uge. T"e /ndian ')onomy i! !urging a"ead by lea2! and bound!? kee2ing 2a)e wit" ra2id urbaniAation? in)rea!ed litera)y le*el!? and ri!ing 2er )a2ita in)ome. T"e big firm! are growing bigger and !mall8time )om2anie! are )at)"ing u2 a! well. A))ording to t"e !tudy )ondu)ted by A$ ;iel!en? 2 of t"e to2 &,, brand! are owned by M;$!? and t"e balan)e by /ndian )om2anie!. 0ifteen )om2anie! own t"e!e 2 brand!? and 2# of t"e!e are owned by @indu!tan 5e*er. Pe2!i i! at number t"ree followed by T"um! 62. Fritannia take! t"e fift" 2la)e? followed by $olgate ( )? ;irma (#)? $o)a8$ola (7) and Parle (9). T"e!e are figure! t"e !oft drink and )igarette )om2anie! "a*e alway! !"ied away from re*ealing. Per!onal )are? )igarette!? and !oft drink! are t"e t"ree bigge!t )ategorie! in 0M$1. Fetween t"em? t"ey a))ount for .5 of t"e to2 &,, brand!. THE TOP ! "O#PA$%E& %$ F#"G &E"TOR &. @indu!tan 6nile*er 5td. 2. 13PA5 1R36P (/ndian Toba))o $om2any) .. ;e!tle /ndia -. 1$MM0 (AM65) 5. Dabur /ndia . A!ian Paint! (/ndia) #. $adbury /ndia 7. Fritannia /ndu!trie! 9. Pro)ter G 1amble @ygiene and @ealt" $are &,. Mari)o /ndu!trie! T"e )om2anie! mentioned are t"e leader! in t"eir re!2e)ti*e !e)tor!. T"e 2er!onal )are )ategory "a! t"e large!t number of brand!? i.e.? 2&? in)lu!i*e of 5u(? 5ifebuoy? 0air and 5o*ely? Vi)k!? and Pond!. T"ere are && @55 brand! in t"e 2&? aggregating R!. .?#99 )rore or 5-E of t"e 2er!onal )are )ategory. $igarette! a))ount for &#E of t"e to2 &,, 0M$1 !ale!? and =u!t below t"e 2er!onal )are )ategory. 13PA5 1R36P alone a))ount!

for

,E *olume market !"are and #,E by *alue of all filter )igarette! in /ndia.

T"e food! )ategory in 0M$1 i! gaining 2o2ularity wit" a !wing of laun)"e! by @55? 13PA5 1R36P? 1odre=? and ot"er!. T"i! )ategory "a! &7 ma=or brand!? aggregating R!. -? .# )rore. ;e!tle and Amul !lug it out in t"e 2owder! !egment. T"e food )ategory "a! al!o !een inno*ation! like !oftie! in i)e )ream!? )"a2atti! by @55? ready to eat ri)e by @55 and 2iAAa! by bot" 1$MM0 and 1odre= Pill!bury. T"i! )ategory !eem! to "a*e fa!ter de*elo2ment t"an t"e !tagnating 2er!onal )are )ategory. Amul? /ndiaH! large!t food! )om2any? "a! a good 2re!en)e in t"e food )ategory wit" it! i)e8)ream!? )urd? milk? butter? )"ee!e? and !o on. Fritannia al!o rank! in t"e to2 &,, 0M$1 brand!? dominate! t"e bi!)uit! )ategory and "a! laun)"ed a !erie! of 2rodu)t! at *ariou! 2ri)e!. /n t"e "ou!e"old )are )ategory (like mo!>uito re2ellent!)? 1odre= and Re)kitt are two 2layer!. 1oodknig"t from 1odre=? i! wort" abo*e R! 2&# )rore? followed by Re)kittH! Mortein at R! &-9 )rore. /n t"e !"am2oo )ategory? @55H! $lini) and Sun!ilk make it to t"e to2 &,,? alt"oug" PG1H! @ead and S"oulder! and Pantene are al!o trying "ard to be 2o!itioned on to2. $lini) i! nearly double t"e !iAe of Sun!ilk. Dabur i! among t"e to2 fi*e 0M$1 )om2anie! in /ndia and i! a "erbal !2e)iali!t. <it" a turno*er of R!. &9 billion (a22ro(. 6SI -2, million) in 2,,582,, ? Dabur "a! brand! like Dabur Amla? Dabur $"yawan2ra!"? Vatika? @a=mola and Real. A!ian Paint! i! en=oying a formidable 2re!en)e in t"e /ndian !ub8)ontinent? Sout"ea!t A!ia? 0ar 'a!t? Middle 'a!t? Sout" Pa)ifi)? $aribbean? Afri)a and 'uro2e. A!ian Paint! i! /ndiaH! large!t 2aint )om2any? wit" a turno*er of R!.22. billion (around 6SD 5&. million). 0orbe! 1lobal magaAine? 6SA? ranked A!ian Paint! among t"e 2,, Fe!t Small $om2anie! in t"e <orld $adbury /ndia i! t"e market leader in t"e )"o)olate )onfe)tionery market wit" a #,E market !"are and i! ranked number two in t"e total food drink! market. /t! 2o2ular brand! in)lude $adburyH! Dairy Milk? 5 Star? ')lair!? and 1em!. T"e R!.&5. billion (6SD .7, Million) Mari)o i! a leading /ndian grou2 in )on!umer 2rodu)t! and !er*i)e! in t"e 1lobal Feauty and <ellne!! !2a)e. T"ere i! a "uge growt" 2otential for all t"e 0M$1 )om2anie! a! t"e 2er )a2ita )on!um2tion of almo!t all 2rodu)t! in t"e )ountry i! among!t t"e lowe!t in t"e world. Again t"e demand or 2ro!2e)t )ould be in)rea!ed furt"er if t"e!e )om2anie! )an )"ange t"e )on!umerH! mind!et and offer new generation 2rodu)t!. 'arlier? /ndian )on!umer! were u!ing non8branded a22arel? but today? )lot"e! of different brand! are a*ailable and t"e !ame )on!umer! are willing to 2ay more for branded >uality )lot"e!. /tH! t"e >uality? 2romotion and inno*ation of 2rodu)t!? w"i)" )an dri*e many !e)tor!. Analysis of %n'ian F#"G &ector &tren(ths) &. 5ow o2erational )o!t! 2. Pre!en)e of e!tabli!"ed di!tribution network! in bot" urban and rural area! .. Pre!en)e of well8known brand! in 0M$1 !e)tor

*ea+nesses4 &. 5ower !)o2e of in*e!ting in te)"nology and a)"ie*ing e)onomie! of !)ale? e!2e)ially in !mall !e)tor! 2. 5ow e(2ort! le*el! .. JMe8tooJ 2rodu)t!? w"i)" illegally mimi) t"e label! of t"e e!tabli!"ed brand!. T"e!e 2rodu)t! narrow t"e !)o2e of 0M$1 2rodu)t! in rural and !emi8urban market. Opportunities4 &. 6nta22ed rural market 2. Ri!ing in)ome le*el!? i.e. in)rea!e in 2ur)"a!ing 2ower of )on!umer! .. 5arge dome!ti) market8 a 2o2ulation of o*er one billion. -. '(2ort 2otential 5. @ig" )on!umer good! !2ending Threats4 &. Remo*al of im2ort re!tri)tion! re!ulting in re2la)ing of dome!ti) brand! 2. Slowdown in rural demand .. Ta( and regulatory !tru)ture T"e 2erforman)e of t"e indu!try wa! in)on!i!tent in term! of !ale! and growt" for o*er year!. T"e in*e!tor! in t"e !e)tor were not gainer! at 2ar wit" ot"er booming !e)tor!. After two year! of !inking 2erforman)e of 0M$1 !e)tor? t"e year 2,,5 "a! witne!!ed t"e 0M$1! demand growing. Strong growt" wa! !een a)ro!! *ariou! !egment! in 0C, . <it" t"e ri!e in di!2o!able in)ome and t"e e)onomy in good "ealt"? t"e urban )on!umer! )ontinued wit" t"eir !"o22ing !2ree.

$3MPA;C PR30/5' Gopal Group? on it! way to !u))e!! "a! e!tabli!"ed many mile!tone!? for ot"er! to follow. 5eading by e(am2le? Gopal Group? now a multi8)rore bu!ine!! )onglomerate? took it! fir!t !te2 in &9-2. Dream )"ild of t"e *i!ionary Late &hri Hari "han',i &u(an'hi? t"e grou2 !aw lig"t of t"e day at a "umble !"o2 at 3ld Del"i. Today? t"e grou2 "a! grown into a multi82rodu)t? multi8di!)i2linary enter2ri!e of un2re)edented !trengt" and !tature? !2read a)ro!! t"e )ountry.
)) Gopal Group ))Address : 339, F.I.E. , Patpargang, Delhi - 110092, INDIA. 011 - !31"02"0 )onta)tKgo2algrou2.net www-(opal(roup-net

Conta t No. E-#ail Id $e%site

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'ndowed wit" mo!t "umane and 2"ilant"ro2i) >ualitie!? S"ri Srigo2al 1u2ta? $"airman of t"e illu!triou! 1o2al 1rou2? i! t"e 2rin)i2al dri*ing for)e be"ind t"e meteori) ri!e of 1o2al 1rou2. A *i!ionary leader and able entre2reneur? S"ri 1u2ta "a! enri)"ed and !trengt"ened t"e 1rou2 wit" "i! !ound bu!ine!! go*ernan)e and *alue8dri*en management. @i! ingeniou! idea! and 2re)i!e e(e)ution are t"e 2illar! of effe)ti*e 2rodu)t de*elo2ment and market dire)tion. <"ile "e "a! been in!trumental in ele*ating t"e $om2any to new "eig"t!? "e 2lay! a 2i*otal role in t"e 1rou2B! !trategi) 2lanning? 2oli)ie! and )or2orate affair!. @e al!o in!2ire! t"e $om2anyB! uni>ue work )ulture by 2romoting )ore *alue! t"at fo)u! on 2eo2le? )u!tomer!? inno*ation? >uality? integrity? fun and 2rofitability. /m2ending wit" "i! *ibrant and *er!atile idea! of e(2an!ion and di*er!ifi)ation to e(2lore !u!tainable li*eli"ood o22ortunitie! i! "i! young and )reati*e !on? Mr. A2oor* 1u2ta. @i! 2a!!ion for building t"e $om2any to a !tronger and bigger )onglomerate refle)t! in "i! keen intere!t in e*ery fa)et of 2rodu)t de*elo2ment and introdu)tion. /ndeed? "e i! known for e()ellent 2eo2le management and team building a)ti*itie! be!ide! infu!ing t"e !2irit of a)tion and a re!ult oriented work )ulture. A2oor* 1u2ta? a dignified management awardee "ead! t"e Sale! G Marketing de!k and i! a man of many talent! wit" a )om2o!ed gra)e in /ndian Mu!i).

&he grand 'ision and perse'eran e o( the tor h %earers o( )hree *opal *ro+p la,s the (o+ndation o( a relia%le (ir#. &he o#pan, ontin+all, 'is+ali-es to enhan e its #an+(a t+ring te hnologies and ontri%+te to its +sto#er.s 'al+e hain %, pro'iding the# /+alit, steels at an opti#al pri e0'al+e ratio.

&he o#pan, +nderlines its strong 'ision to pro#ote an en'iron#entall, responsi%le, sa(e and health, 1or2 +lt+re and also (o +s on ontin+al i#pro'e#ent o( pro esses and per(or#an e.

.44 Ri!e G S"ine 44. 1o2al 1rou2 in*ite! you to take u2 t"e )"allenge! and make your !kill! )ount t"roug"

numerou! )areer and training o22ortunitie!. /n 1o2al? we "a*e 2eo2le w"o are different from one anot"er? but united by dee28rooted *alue! and )ulture. 3ffering unlimited )"allenge! and o22ortunitie! for 2er!onal growt" wit" an in!ig"t to )are for it! budding talent! build t"e )ore 2art of t"e 1rou2B! "uman re!our)e! )ulture of de*elo2ment and *alue!. 'n)ouraging 2er!onal de*elo2ment 2otential to be)ome a reality i! a fundamental fa)tor in it! !u))e!!. 1o2al 1rou2 alway! en)ourage! 2eo2le to make t"e mo!t of t"eir talent! and take a leading role in t"eir own de*elo2ment.

<e kee2 our loyalty toward! t"e )on!umer! and t"e tru!t t"ey 2la)e in our 2rodu)t! wit" t"eir e*eryday 2ur)"a!e! at t"e )ore of t"e long8la!ting relation t"at we en=oy wit" t"em. 3ur $om2any 2ra)ti)e! are ba!ed on mutual tru!t between )olleague!? full dedi)ation and tran!2aren)y toward! t"e 1rou2? a! well a! toward! all bu!ine!! and !o)ial !take"older! wit" w"om we intera)t daily.

<e u2"old t"e 2rote)tion of "uman dignity? un)onditional re!2e)t of "uman rig"t!? in e*ery o2erational a!2e)t of our bu!ine!!. <e !u22ort t"e abolition of t"e e(2loitation of )"ild labour and of for)ed and )oer)i*e

labour? wit"in our !2"ere of influen)e and along t"e entire 2rodu)tion )"ain? t"roug" !2e)ifi) legal mean! and )lo!e relation! wit" t"e work for)e.

<e are an /ndian )om2any wit" manufa)turing and !ale! fa)ilitie! in !trategi) lo)ation!. <e a22ly e(a)ting !tandard! to en!ure 2remium >uality 2rodu)t!. Fe!ide! our day to day o2eration! of manufa)turing toba))o and non8toba))o 2rodu)t!? we are al!o in*ol*ed in a!!e!!ing our 2re!ent work met"od! and im2ro*i!ing a))ording to t"e )"anging !)enario.

Regular training 2rogramme! kee2 our workfor)e fully informed about t"e late!t in t"e indu!try. <e )ontribute to )ommunity welfare t"roug" )"aritable a)ti*itie! and !u22orting ;13!.

Raw material i! t"e life G !oul of an end 2rodu)t G we? at 1o2al 1rou2? in!i!t on t"e 2erfe)t. 3ur "ig"ly e(2erien)ed workfor)e? led by a !killful G e(2erien)ed Pro)urement Manager? mo!t re!2on!ibly )"oo!e! t"e be!t to deli*er t"e fine!t. Fe it toba))o ba!ed 2rodu)t!? fla*or!? fragran)e!? e!!en)e! ... we "and2i)k be!t of t"e lot.

<it" "ig"ly !2e)ialiAed and te)"ni)ally mo!t ad*an)ed ma)"inery and !tate of t"e art infra!tru)ture !ituated at Faddi in @ima)"al Prade!" and in t"e ;$R region? t"e 2lant! are regularly u2graded to en"an)e t"e work )a2a)ity of t"e ma)"ine!. /n e(tremely !afe? "ygieni)? re!our)eful and en*ironment friendly )ondition!? !killful 2rofe!!ional!? te)"ni)ian!? e(2ert! and worker! 2ut in t"e be!t of t"eir )a2abilitie! to 2rodu)e "ig"e!t >uality 2rodu)t!.

A good raw material treated G 2ro)e!!ed by mo!t knowledgeable G well *er!ed 2rofe!!ional!? re!ult! in a !u2erb end 2rodu)t. Meti)ulou!ly made? at our "i8te)" 2lant!? e*ery end 2rodu)t i! an en*iable )reation t"at !tand! t"e te!t of 2erforman)e e()e2tionally well at 2ar wit" t"e leading brand!. 1o2al "a! indeed rai!ed t"e bar for ni)"e 2rodu)t!. '!tabli!"ing >uality )ode! for ot"er! to follow t"e!e 2rodu)t! are looked u2on a! in!2iration for ot"er!.

<e "a*e now immer!ed our!el*e! into the hospitality business also in con,unction with worl' famous *elcome Group Hotels- 0ortune Re!ort 1ra)e t"e new "o!2itality *enture i! t"e off!2ring of t"i! allian)e. T"i! new re!ort w"i)" "a! )ome u2 in Mu!!orie de!er*e! more t"an a 2a!!ing mention. Surrounded by 2ri!tine "ill! and en)"anting *alley? t"e re!ort i! lo)ated at t"e 5ibrary 'nd of t"e Mall Road. S2read o*er an e(2an!e of .2 a)re!? it offer! a )"oi)e of #- well a22ointed room!? in)luding Valley View Room!? 5u(ury Suite! and o2ulent Pre!idential Suite. T"i! i! a 2erfe)t 2la)e to unwind your!elf and at t"e !ame time 2ro*ide! a uni>ue en*ironment for bu!ine!! and lei!ure. And t"i! i! =u!t a beginning. More !u)" landmark "otel! are lined u2 to dot t"e /ndian land!)a2e in t"e "o!2itality )ir)uit.

<it"out 2ower? de*elo2ment i! not 2o!!ible and we at Gopal )om2re"end t"i! )learly. /t i! t"i! a22re)iation t"at "a! !2urred u! to !et u2 a #e(a hy'ro power pro,ect in Himachal Pra'esh. 3n)e )om2leted t"e )om2any will be able to ta2 2ower generation 2otential in t"e !tate of @ima)"al and 6ttarak"and and "el2 to augment 2ower generation. Fe"ind? our !tellar 2erforman)e i! t"e 2ower of t"e 2eo2le G t"e fore!ig"t of t"e management. A !trong workfor)e w"i)" i! working relentle!!ly to deli*er t"i!

2owerful *i!ion of be)oming t"e powerhouse in the hill'evelopment of Himachal Pra'esh . Uttara+han'- <it" t"e )ommi!!ioning of t"e 2ro=e)t t"e grou2 aim! to a)"ie*e international !tandard of e()ellen)e in all a!2e)t! of "ydro2ower.

-)) &ocial Responsibility lies at the core of our business philosophy ))-

Gopal Foun'ation wa! e!tabli!"ed on 7t" Se2tember? &999. /t wa! !et u2 for t"e noble )au!e of im2arting edu)ation. ;eedy and de2ri*ed )"ildren were ado2ted for >uality edu)ation and !ent to good !)"ool!. T"e!e brig"t little one! were 2i)ked u2 from 2oor familie! w"i)" were below t"e 2o*erty line. Soon t"e Tru!tee realiAed t"at only edu)ation did not !uffi)e t"e )au!e for w"i)" 1o2al 0oundation wa! e!tabli!"ed and it wa! de)ided to e(2and our "oriAon. T"e 0oundation de)ided to "el2 t"e go*ernment in fig"ting t"e natural )alamitie! and man8 made ad*er!e )ondition!. <e donated generou!ly toward! re"abilitation of t"e widow! of t"e martyr! of :argil <ar in &999. <"en Mot"er ;ature turned "o!tile and a "eart wren)"ing eart">uake !tru)k in F"u=? 1u=arat? in 2,,&? 1o2al 0oundation ado2ted an entire *illage and "el2ed in )on!tru)tion of t"e "ou!e!. <"en TS6;AM/ !tru)k and wa!"ed away t"e "a22ine!! from t"e !"ore! of !out" we!tern )oa!tline in /ndia in t"e year 2,,-? we "el2ed in re"abilitating t"e di!2la)ed !ufferer!.

:argil <ar in &999

/ear 0!!1 al!o !aw a ma=or e(2an!ion in t"e !)o2e of our work. /t wa! de)ided to fig"t a )au!e w"i)" not only take! away life but lea*e! t"e family member! emotionally blank a! t"ey !ee t"eir lo*ed one! die "el2le!!ly in front of t"em for la)k of fund! to buy t"e )o!tly medi)ine!. /t wa! de)ided to fig"t $A;$'R by ado2ting t"o!e 2atient! w"o are !o 2oor t"at t"ey )annot e*en dream of t"eir treatment. ;ot e*erybody )an t"ink of going to a good "o!2ital? let alone t"e treatment. T"e!e 2atient! go to "o!2ital! !u)" a! A//MS in t"e "o2e of being treated free. @ere? no fee i! )"arged for do)torB! )on!ultation and to !ome e(tent t"e medi)ine! are al!o free. Fut w"en it )ome! to )o!tly medi)ine!? e.g. )"emot"era2y drug!? e*en t"e "o!2ital )anBt afford to gi*e t"em to e*ery 2oor and needy 2atient. T"e!e 2atient! realiAe t"at t"ey will =u!t "a*e to wait for t"e ine*itable 2ainful de2arture from t"eir !uffering! and t"eir family member! will "a*e to !ee t"em going t"roug" t"at unbearable 2ain e*ery day. T"e!e 2atient! )ome not only from Del"i but from all 2art! of /ndia to A//MS. <e got in tou)" wit" t"e Medi)al Su2erintendent of A//MS and took u2 t"e matter wit" t"e @ead of 3n)ology De2artment. A !y!tem wa! worked out wit" t"e do)tor! and t"e <elfare 3ffi)er? w"erein all t"e needy 2atient! w"o are below t"e 2o*erty line are re)ommended to 1o2al 0oundation for ado2tion. <e not only "el2 t"em wit" )"emot"era2y medi)ine! but al!o )oun!el t"em

t"oroug"ly. T"ey are introdu)ed to t"e magi) of Coga w"i)" not only "el2! t"em !trengt"en t"eir inner !elf but al!o "el2! t"em in fig"ting t"eir di!ea!e wit" en"an)ed immunity. Till A2ril? 2,&,? we regi!tered 5,, 2atient! wit" u! w"o !uffer from *ariou! ty2e! of )an)er *iA.? Frea!t? 5ung? Frain Tumor? $er*i(? $olon? ;euro 0ibroma? Flood? Re)tum? 1/ST? 3*ary? 6teru!? Pro!tate? T"yroid? 3b!tru)ti*e Laundi)e? ;on @odgkinB! 5ym2"oma et).

A//MS Del"i? /;D/A Variou! ot"er )au!e! are al!o taken u2 by 1o2al 0oundation. <e "el2 an ;13 in Del"i w"i)" take! )are of infant! w"o are abandoned by or !e2arated from t"eir 2arent! due to *ariou! rea!on!. Some of t"e!e infant! are =u!t a day old w"en abandoned by t"eir mot"er!. T"i! ;13 trie! to find t"eir 2arent!? if 2o!!ible? ot"erwi!e after following a 2ro2er 2ro)edure "and! t"em o*er to )"ildle!! )ou2le!? t"u! gi*ing a rea!on to !mile not only to t"e )ou2le but to t"e )"ild a! well. T"e 0oundation !u22lie! milk to t"i! ;13 e*ery mont" !o t"at t"e!e little one! are not de2ri*ed of food. T"ere i! anot"er ;13 in Del"i w"i)" run! a 2re8 !)"ool in t"e !lum! of Sout" Del"i. T"e )"ildren of t"i! 2re 8!)"ool are 2re2ared to get admi!!ion in good 2ri*ate !)"ool!. T"i! ;13 not only "el2! in getting t"em admi!!ion but al!o make! !ure t"at all t"e a)ademi) re>uirement! of t"e!e )"ildren are al!o )atered to. Sin)e we feel t"at a )"ild !"ould be made !elf !uffi)ient and edu)ation i! t"e fir!t !te2 toward! it? we "el2 t"e 2re 8!)"ool of t"i! ;13 in e*ery 2o!!ible way. S)"ool! run by an ;13 in t"e !lum! of 'a!t Del"i and ;oida are al!o ado2ted

by u!. All t"eir edu)ation material re>uirement! like? book!? )o2ie!? writing material et). and to !ome e(tent furniture are taken )are of by our 0oundation. T"e *o)ational training !)"ool! of t"e!e ;13! are al!o !u22orted by u! by 2ro*iding t"em *ariou! e>ui2ment!. Gopal Foun'ation al!o "el2! in marrying off t"e daug"ter! of 2oor familie! and gift! t"em uten!il! et). to !et u2 t"eir k1o2al 1rou2"en. '*ery year ten !u)" newlywed! are !u22orted by 1o2al 0oundation. <e "a*e )ertainly not forgotten our !enior )itiAen!. <e "a*e ado2ted an old age "ome in Del"i? w"ere different re>uirement! of t"e!e )itiAen! are taken )are of. A2art from all t"e abo*e )au!e!? Gopal Foun'ation i! a!!o)iated wit" %&2"O$ and "el2! in t"eir 3GAU &E*A4 Ab"iyan.
Frig"t Far!

<e offer !u2erior >uality brig"t bar! in a *ariety of grade!? !iAe! and toleran)e!. &i5e Ran(e 5mm 8 &,,mm (&M5J 8 -J) &upply "on'itions 5engt" 8 . to .5 Meter!

$old Drawn? $entrele!! 1round? Peeled G Poli!"ed? Roug" Peeled or Smoot" Turned bar! Toleran)e! 8 "9? "&,? "&&? k&2? k&.

1rit Poli!" a! 2er $u!tomerB! Re>ue!t @eat Treatment Far! 'nd 0ini!" S2e)ifi)ation! 8 8 8 Annealed? Solution Annealed or <ater Nuen)"ed $"amfered end!? Plain end! wit"out Furr! or S"ar2 'dge! A! 2er ';? D/;? L/S? ASTM? FS? ASM'? A/S/? et).

Pre)i!ion Nuality S"aft Far!

3ur 2re)i!ion >uality bar! are known for be!t ma)"inability a! t"ey are made out of t"e mo!t ad*an)ed and !2e)ially de!igned 2rodu)tion line t"at maintain! and gi*e! )on!i!tent me)"ani)al and )"emi)al fa)t! a! 2er )u!tomer re>uirement. All t"e bar! are t"oroug"ly )"e)ked for ultra!oni) flaw! and are 2a)ked u!ing !2e)ially de!igned e>ui2ment! u!ing di!tan)e ring!? w"i)" i! t"en 2a)ked in 2lywood bo(e!. 3ur Pre)i!ion Far! are regularly u!ed in 4

Pum2 S"aft! Val*e S"aft! $ylinder S"aft! Fearing Far! Foat S"aft! Pi!ton S"aft! &i5e Ran(e mm 8 #,mm (&M-J 8 2 .M-J) &upply "on'itions 5engt" Toleran)e! Straig"tne!! 8 . to Meter!

8 "9? "7? = ? f#? f7 8 ,.5 mm 2er Meter

@eat Treatment! 8 Annealing? Solution Annealing

S>uare and @e(agonal Frig"t Far!

&i5e Ran(e & mm 8 -#mm &upply "on'itions 5engt" Toleran)e! 8 . to Meter!

8 "&&? k&2? k&.

$old Drawn? 1round and 1rit Poli!"ed a! 2er $u!tomerB! Re>ue!t @eat Treatment 8 Annealed? Solution Annealed or <ater Nuen)"ed Far! 'nd 0ini!" 8 $"amfered 'nd!? Plain end! wit"out Furr! or S"ar2 'dge! S2e)ifi)ation! '>ual Angle! 8 A! 2er ';? D/;? L/S? ASTM? FS? ASM'? A/S/? et).

&,,E /dentified t"roug" "and"eld !2e)trometer

&i5e Ran(e &i5e 6mm7 ., ( ., .5 ( .5 -, ( -, 5, ( 5, ,( , 5( 5 &upply "on'itions . to meter! bar! wit" fini!"ed end! &i5e 6inch7 & &M- ( &.&M&.&M2 ( &.&M2 &..M- ( &..M2.&M- ( 2.&M2.&M2 ( 2.&M2 2..M- ( 2..MThic+ness 6mm7 5? ? # 5? ? # 5? ? # 5? ? # 5? ? # 5? ? #

Fot" end! are )olor )oded a! 2er )u!tomerB! re>uirement!. S"ar2 or round )ornered a*ailable. S2e)ial deli*ery )ondition! (a*ailable on re>ue!t) S2e)ial )ut to lengt" wit" toleran)e! of 8, O&, mm? 2-, 8 .2, 1rit Poli!"ed Annealed G Pi)kled fini!" (a*ailable on re>ue!t) 0orged G Turned Round Far!

&i5e Ran(e &5, to 5,, mm &upply "on'itions 5engt" 8 . to - Meter! @eat Treatment! 8 Annealing? Solution Annealing 6ltra!oni) Te!ted 0ree 0rom Surfa)e Defe)t! and $ra)k! &,,E /dentified wit" @and"eld S2e)trometer 0lat Far!

&i5e Ran(e *i'th 6mm7 25 ., Thic+ness 6mm7 5 to &, 5 to &,

.5 -, -5 5, 55 , 5 #, 7, 75 9, &upply "on'itions . to meter! bar! wit" fini!"ed end!

5 to &, 5 to &, 5 to &, 5 to &, 5 to &, 5 to &, 5 to &, 5 to &, 5 to &, 5 to &, 5 to &,

Fot" end! are )olor )oded a! 2er )u!tomerB! re>uirement!. S"ar2 or round )ornered a*ailable. S2e)ial deli*ery )ondition! (a*ailable on re>ue!t) S2e)ial )ut to lengt" wit" toleran)e! of 8, O&, mm? 2-, 8 .2, 1rit Poli!"ed Annealed G Pi)kled fini!" (a*ailable on re>ue!t) @ot Rolled @e(agonal G S"ar2 $ornered S>uare Far!

&i5e Ran(e SN6AR'S 8 &7mm 8 -#mm (&&M& J to &.M-J)

@'PA13;A5S8 &7mm 8 5#mm (&&M& J to 2.M-J) &upply "on'itions 5engt" 8 . to Meter!

&,,E /dentified wit" @and"eld S2e)trometer @ot Rolled Round $orner S>uare! ( R$S )

&i5e Ran(e -5 mm P -5 mm #5 mm P #5 mm 7, mm P 7, mm 75 mm P 75 mm 9, mm P 9, mm &,, mm P &,, mm &upply "on'itions 5engt" 62to 7 Meter! @ot Rolled ( Fla)k ) Surfa)e &,,E 6ltra!oni)ally te!ted S2ot grinded or fully grinded !urfa)e 0ree of !urfa)e defe)t!M)ra)k! $old Sawable Smoot" 'nd! wit"out !"ar2 edge! &,,E Material /dentity te!ted t"roug" "and"eld S2e)trometer Produ)t!

Frig"t Far! Pre)i!ion Nuality S"aft Far! S>uare and @e(agonal Frig"t Far! '>ual Angle!

0orged G Turned Round Far! 0lat Far! @ot Rolled @e(agonal G S"ar2 $ornered S>uare Far! @ot Rolled Round $orner S>uare! ( R$S ) @ot Rolled Round Far! $ontinuou! $a!t Fillet! M Floom! 0orging Nuality /ngot! ;ew! G '*ent!

&tainless &teel *orl' 0! 8 ;o*ember &2t" 8 &-t"? 2,&. Stand ;o. S&25? Maa!tri)"t '("ibition $ongre!! $entre Maa!tri)"t? T"e ;et"erland! 9iew All

Download!

$or2orate Fro)"ure

Stainle!! Steel 0o)u!

La:con #obile App

S"owreel

@ot Rolled Round Far!

&i5e Ran(e & to &2, mm (5M7J 8 - .M-J) &upply "on'itions 5engt" 8 62to 7 Meter! @ot Rolled ( Fla)k ) Surfa)e &,,E 6ltra!oni)ally Te!ted S2ot grinded or fully grinded !urfa)e @eat Treated 8 Annealed? Solution Annealed? <ater Nuen)"ed 0ree of !urfa)e defe)t!M)ra)k! $old Sawable

&,,E material identity te!ted t"roug" "and"eld !2e)trometer $ontinuou! $a!t Fillet! M Floom!

&i5e Ran(e &i5e &2, mm ( &2, mm &-, mm ( &-, mm & , mm ( & , mm 2,, mm ( 2,, mm 22, mm ( 25, mm 27, mm ( &-, mm .,, mm ( & , mm &5, mm 25, mm &upply "on'itions 5engt" 8 62to 9 Meter S2ot 1rinded or 0ully 1rinded $ondition (A! 2er re>ue!t) Suitable for 0orging? Re8rolling? Ring Rolling G 628!etting Marked <it" @eat ;umber? 1rade? SiAe G <eig"t 0orging Nuality /ngot! Type S>uare S>uare S>uare S>uare Re)tangular Re)tangular Re)tangular Round Round *T 6+( ; mtr7 &&2 &52 &97 .&5 -., .,5 .# &-, .75

<it" wide range of Stainle!! and Alloy Steel grade!? we offer *ariety of ingot! in weig"t u2 to 2, M.T. in !>uare? o)tagonal and round !"a2e! a! following4

&i5e Ran(e *T- 6in +ilo(rams7 . , -#, 5, 7&5 775 95, &?&5, &?55, &?7#, 2?,5, 2?55, 2?.,, -?&,, .?-,, -?&,, -?#5, 5?&,, ?&,, &,?&,, &-?5,, 2,?,,, #oul' <rawin(s Download Download Download Download Download Download Download Download Download Download Download Download Download Download Download Download Download Download Download Download Download

%n(ot &i5e 6in inches7 #J P 7J P 52J 7J P 9J P 52J 9 J ( &,.5 J ( 5- J &, J ( &2 J ( 52 J && J ( &. J ( 52 J && J ( &. J ( 52 J (3P';) &. J ( &5 J ( 2 J &. J ( &5 J ( 2 J &- J ( & J ( 2 J &- J ( &# J ( #2 J & .5 J ( 2, J ( 5 J &7 J ( 2& J ( # J &9.5 J ( 2 J ( #, J 2& J ( 2. J ( # J 2, J ( 2- J ( #. J 2& J ( 2# J ( 5 J 2. J ( 2# J ( #, J 2# J ( ., J ( 2 J .&.5 J ( .7 J ( #. J (M89) .7 J ( -# J ( #, J (M8&.) -2.5 J ( 52.5 J ( 7#.5 J (M8&7)

&hape S>uare S>uare S>uare S>uare S>uare S>uare 0luted S>uare S>uare S>uare S>uare 0luted S>uare 0luted S>uare S>uare 0luted 0luted 0luted 0luted 0luted

Q& J ( 92J Q2,J ( 7,J

Round Round

2?,,, .?#5,

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Q2-J ( 92J Q& J ( & ,J Q2,J ( & ,J &upply "on'itions S2ot ground or fully ground 0ree of !urfa)e defe)t! G )ra)k!

Round Round Round

5? ,, .?7,, ?& ,

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Smoot" end! (wit"out burr!) M no !"ar2 edge! $ro22ed or un8)ro22ed end! (u2on re>ue!t)

=- Financial &tatement Analysis) %nter "ompany

Ratio Analy!i!
A7 Li>ui'ity Analysis
*or+in( "apital) @ig"er t"e )urrent a!!et! of a )om2any and lower t"e )urrent liabilitie!? greater i! t"e working )a2ital. A larger )"unk of working )a2ital )an be u!ed to fund t"e long term liabilitie! of t"e )om2any and t"erefore? t"e larger t"e working )a2ital? t"e better it i! for t"e )om2any. T"e following table gi*e! t"e working )a2ital of t"e t"ree )om2anie! under )on!ideration for t"e t"ree year 2eriod. Fi(ure ??9

Working Capital
30000.00 23000.00 Working Capital (In Rs. Million) 20000.00 13000.00 10000.00 3000.00 0.00 -3000.00 -10000.00 -13000.00 Year I&C 5ari o 677 200!-03 2003-0" 200"-04

/t i! e*ident t"at 13PA5 1R36P i! by far t"e be!t )om2any (among t"e t"ree) in term! of building u2 it! net )urrent a!!et!. T"e )om2any i! in)rea!ingly u!ing it! !"ort term fund! to 2ay for t"e long term liabilitie!. @55 on t"e ot"er "and i! deteriorating in >uality and i! gradually getting o*erburdened by in)rea!ing 2re!!ure! due to a negati*e working )a2ital. *or+in( "apital <ays) A )om2arati*e analy!i! a)ro!! ot"er )om2anie! in t"e 0M$1 !egment !"ow! t"at @55 "a! wor!ened it! working )a2ital ratio. /n fa)t? t"e )om2any "a! in)rea!ed t"e magnitude of t"e negati*e working )a2ital be)au!e of w"i)" a 2art of t"e long term a!!et! are u!ed to fund t"e !"ort term liabilitie!. Mari)o on t"e ot"er "and? "a! !"own a marginal in)rea!e in t"e working )a2ital ratio and !till lead! 13PA5 1R36PB! working )a2ital ratio by o*er 5,E. Fi(ure ??9%
Working Capital Days
1.20 Working Capital Days 1.00 0.80 0."0 0.!0 0.20 0.00 -0.20 -0.!0 0.13 -0.03 2003-0" -0.24 Year I&C 5ari o 677 200"-04 -0.23 0.3" 0.82 0.!3 0.33 1.02

200!-03

"urrent Ratio)

T"e rea!on w"y t"e ratio in)rea!e! mainly i! be)au!e of a more t"an 2ro2ortionate in)rea!e of t"e $urrent A!!et! w"en )om2ared to t"e $urrent 5iabilitie!. T"e gra2" below !"ow! t"e )om2ari!on of 13PA5 1R36P *i!8D8*i! t"e ot"er two )om2etitor! )"o!en in t"e market. <e ob!er*e t"at in t"e year 2,,-85? Mari)o "ad t"e be!t $urrent Ratio but gradually? wit" a ra2id growt" in t"e )urrent a!!et! of 13PA5 1R36P? it "a! )ome at 2ar wit" t"e leader! wit" t"e falling trend in t"e indu!try (a! !"own by t"e ot"er two )om2anie!) in t"e !e)tor. Fi(ure ??9%%
Current Ratio
2.30 2.00 Ratio 1.30 1.00 0.30 0.00 200!-03 2003-0" Year I&C 5ari o 677 200"-04 1.13 0.93 0.43 2.02 1.3" 1.!3 1.82 1.33

0.43

Li>ui'ity Ratio) Al!o? w"en )om2ared to t"e )om2anie!? w"ile t"e )urrent ratio for Mari)o and 13PA5 1R36P )on*erge!? t"e ga2 i! more or le!! t"e !ame for li>uidity ratio. T"i! im2lie! t"at t"e )om2any a! been maintaining a "uge amount of in*entorie! (unlike Mari)o? w"o!e in*entory amount i! almo!t )on!tant) t"at form a 2art of t"e )om2anyB! )urrent a!!et!. T"e gra2" below define! t"e analy!i! 2re!ented "ere. Fi(ure ??9%%%

Liquid Ratio
1.20 1.00 0.80 Ratio 0."0 0.!0 0.20 0.00 200!-03 2003-0" Year I&C 5ari o 677 200"-04 0.33 0.!3 1.08 0.89 0."! 0.! 0."4 0.!1

1.13

Absolute "ash Ratio) Mari)o refle)t! a 2"enomenal growt" in 2o!!e!!ing li>uid a!!et! to finan)e it! )urrent liabilitie!. T"oug"? it i! to be noted t"at 13PA5 1R36P too !"ow! a more t"an &,,E in)rea!e in t"e ab!olute ratio. T"e )om2any i! )at)"ing u2 wit" t"e leader (among t"e t"ree) and i! t"erefore on a good growt" 2at". Fi(ure ??%?
Absolute Cash Ratio
1.20 1.00 0.80 Ratio 0."0 0.!0 0.20 0.00 200!-03 2003-0" Year I&C 5ari o 677 200"-04 0.4 0.!2 0.23 0."1 0.!8 0.28 0.31 0.31 0.98

%nventory 'ays) T"e following gra2" gi*e! a )om2arati*e 2erforman)e of t"e )om2any in t"e !e)tor. Fot" @55 an 13PA5 1R36P "a*e e(2erien)ed a fall in t"e in*entory day! due to larger !ale! and larger )o!t of t"e good! !old. Al!o? bot" )om2anie! "a*e maintained a larger and larger !to)k of in*entorie! o*er t"e t"ree year 2eriod? e*ery !ub!e>uent year. Mari)o on t"e ot"er "and "a! !"own more t"at a 5,E in)rea!e in !ale! in t"e t"ree tear frame but "a! !till maintained almo!t t"e !ame amount of in*entorie! e*ery year for it! o2eration!.

Fi(ure ???
In entory Days
!3000.00 !0000.00 33000.00 In Rs. Million 30000.00 23000.00 20000.00 13000.00 10000.00 3000.00 0.00 200!-03 2003-0" Year In'entories C9*) per da, In'entor, Da,s 200"-04 132.49 144.04 230.!9 1"3.00 1"0.00 23!30.80 143.9! 140.41 3113!.30 191.31 393!".40 193.00 190.00 183.00 180.00 143.00 140.00 In entory Days

<ebtor <ays) A )om2arati*e analy!i! of t"e figure under )on!ideration !"ow! t"at t"e debtor day! in t"e indu!try "a*e a downward trend and 13PA5 1R36P i! no e()e2tion. $om2anie! like @55 and Mari)o "a*e !"own a more !ignifi)ant fall in t"e figure owing bot" to in)rea!ing !ale! and le!!er )om2arati*e )redit gi*en. Fi(ure ???%
Debtor Days
18.00 1".00 1!.00 12.00 10.00 8.00 ".00 !.00 2.00 0.00 1".92 1"."8 13.93 13.83 13.3! 1!.0! 9."8 13.!8 12

Debtor Days

200!-03

2003-0" Year I&C 5ari o 677

200"-04

"re'itor <ays) $om2arati*ely? 13PA5 1R36P "a! done *ery well in t"e 0M$1 indu!try. <"ile t"e ot"er two )om2anie! "a*e regi!tered "ig"er growt" in t"e !ale! 2er day of t"e good!? 13PA5 1R36P "a! )ut it! )o!t! !ignifi)antly and "a! maintained low )reditor! on t"e ot"er "and to refle)t in lower )reditor day! for t"e )om2any. Fi(ure ???%%

Creditor Days
200.00 180.00 1"0.00 1!0.00 120.00 100.00 80.00 "0.00 !0.00 20.00 0.00

Creditor Days

14".32 133.43 8! 3!.3

144.24

14".3" 138.98 110.33

128.88

200!-03

2003-0" Year I&C 5ari o 677

200"-04

@7 &olvency Analysis
<ebtAE>uity Ratio) A)ro!! t"e indu!try? it "a! been ob!er*ed t"at t"ere i! a !imilar !ort of a mi( and mat)". <"ile @55 fund! it! o2eration! from lower and lower loan! e*ery year? Mari)o feel! t"at a tradeoff between u!age of )a2ital and u!age of loan! need! to be done. /n)rea!ingly? t"e latter i! funding it! o2eration! t"roug" more and more debt? 2o!!ibly be)au!e of a le!!er )o!t of t"e !ame. T"e gra2" below inter2ret! t"e re!ult! written abo*e.

Fi(ure ???%%%

Debt!"quity Ratio
1.!000 Debt!"quity Ratio 1.2000 1.0000 0.8000 0."000 0.!000 0.2000 0.0000 0.3030 0.0309 200!-03 0.02!4 0.0138 2003-0" Year I&C 5ari o 677 0.02"4 0.0184 200"-04 0.4030 0.91"3 1.30!"

%nterest "overa(e Ratio) 13PA5 1R36P 5imited i! by far t"e bigge!t RgainerS in term! of t"e intere!t )o*erage ratio. <"ile @55 al!o intend! to be a !elf funded )om2any by letting off it! loan! from t"e o2en market? 13PA5 1R36P follow! !omew"at t"e !ame !trategy t"ereby leading to an in)rement in t"e /ntere!t )o*erage for bot". Al!o? w"ile t"e in)rea!e in t"e intere!t )o*erage for @55 i! about &27#E? t"e 13PA5 1R36P 1rou2 !"ow! a fabulou! &##2E in)rement in t"e intere!t )o*erage ratio in t"ree year!. 3n t"e ot"er "and? Mari)o 5imited u!e! more and more debt to fund it! o2eration re!ulting in a lower intere!t )o*erage ratio w"en )om2ared to one!elf two year! ba)kT Fi(ure ???%9
Interest Co erage Ratio
1!00.00 Interest Co erage Ratio 1200.00 1000.00 800.00 "00.00 !00.00 200.00 0.00 "!.00 38.13 12.38 200!-03 243.03 8!."1 20."0 2003-0" Year I&C 5ari o 677 14!.30 8.29 200"-04 1198.1"

<ebt to Total Fun's) $om2arati*ely? @55? al!o a *ery big organiAation wit" a !ignifi)ant time 2eriod of e(i!ten)e in t"e market get! !elf funded and t"ereby "a! let go off it! debt in t"e t"ree year!. T"i! "a! refle)ted in a lower debt !"are for t"e )om2any.

$on*er!ely? Mari)o? an u2)oming organiAation i! )on!tantly borrowing money from t"e market? at a rate t"at i! fa!ter t"an t"e a))umulation of 2rofit! (e*en t"oug" it i! doing well in term! of )reating wealt" for t"e !"are"older!? in)rea!ing 2rofit.) 1ra2"i)ally? t"i! i! de2i)ted below. Fi(ure ???9
Debt Ratio
0."00 0.300 Debt Ratio 0.!00 0.300 0.200 0.100 0.000 200!-03 0.030 0.02! 0.01" 2003-0" Year I&C 5ari o 677 0.02" 0.018 200"-04 0.!48 0.!13 0.233 0.3""

Reserves to Total Fun') <"ile 13PA5 1R36P "a! !"own an in)rement in t"e re!er*e! !"are to t"e )a2ital em2loyed? old )om2anie! in t"e market are al!o 2i)king u2 t"e !ame trend. @55 i! gradually u!ing more fund! of it! own to run it! o2eration!. 3n t"e ot"er "and? a relati*ely new organiAation? Mari)o "a! in)rea!ed t"e !"are of debt to a)>uire a larger 2o!ition in t"e market and get more )a2ital. Fi(ure ???9%
Reser es Ratio
1.000 0.900 0.800 0.400 0."00 0.300 0.!00 0.300 0.200 0.100 0.000 0.9!0 0.9!3 0.883 0.3"2 0.323 0.!0" 0.294 0.9!4 0.893

Reser es Ratio

200!-03

2003-0" Year I&C 5ari o 677

200"-04

<ebt &ervice Ratio)

A)ro!! )om2anie!? 13PA5 1R36P and @55 follow t"e !ame trend in t"e form of t"e 2attern followed for t"e debt !er*i)e ratio. Fot" )om2anie! "a*e been re2orting large 2rofit! and "a*e been letting go of t"e loan! taken from t"e free market to make t"em a more !elf funded organiAation. Mari)o on t"e ot"er "and refle)t! a falling debt !er*i)e due to a more t"an 2ro2ortionate in)rea!e in t"e debt w"en )om2ared to t"e 2rofit for t"at year. Fi(ure ???9%%
Debt #er i$e Ratio
30.00 Debt #er i$e Ratio 23.00 20.00 13.00 10.00 3.00 0.00 1.1" 1.11 200!-03 0.!3 2003-0" Year I&C 5ari o 677 0."8 200"-04 10.99 28.32 22.34 23.49 19.3"

"7 Profitability
P@%T 6Operatin( %ncome7 to &ales) 3t"er )om2anie! in t"e !egment "a*e e(2erien)ed a !imilar trend in t"e ratio defined abo*e. <"ile for Mari)o? t"e ratio ro!e from #. E to about &&E? t"e PF/T figure for @55 i! about &-.25E of t"e Sale!. 3*erall? 13PA5 1R36P "a! t"e "ig"e!t return on t"e in*e!tment? if mea!ured by t"i! 2arameter.

Fi(ure ???9%%%

%&I'!#ales Ratio
0.230 0.200 %&I'!#ales Ratio 0.200 0.130 0.100 0.030 0.000 200!-03 2003-0" Year I&C 5ari o 677 200"-04 0.1!" 0.04" 0.199 0.198 0.1!0 0.132 0.090 0.110

PAT to &ales) A)ro!! )om2anie! in t"e indu!try? t"e PAT8Sale! ratio "a! !"own a trend t"at "o*er! around t"e !ame *alue. $om2anie! like @55 and Mari)o maintain a )on!tant ratio for t"eir )om2any of about &&.&E and #.2E re!2e)ti*ely. T"i! )ould be be)au!e of t"e in)rea!ing ta( t"at t"e )om2any "a! to bear wit" from t"e !e)ond year of )on!ideration. Fi(ure ???%?
%A'!#ales Ratio
0.180 0.1"0 0.1!0 0.120 0.100 0.080 0.0"0 0.0!0 0.020 0.000 0.1"1 0.133 0.13" 0.113 0.104 0.040 0.110 0.04" 0.043

%A'!#ales Ratio

200!-03

2003-0" Year I&C 5ari o 677

200"-04

Return on $etworth (RO$*7) <"ile 13PA5 1R36P 5imited wa! t"e be!t )om2any? among t"e t"ree? w"en looked at from t"e 2oint of *iew of PF/T or PAT to Sale!? t"e )om2any i! a laggard w"en mea!ured in term! of t"e R3;<. $learly? from t"e diagram below? it i! e*ident t"at t"e ot"er two )om2anie!? Mari)o and @55 are better 2erformer! in term! of t"e return for t"e !"are"olderB! monie!. <"ile @55 maintain! it! "ig"

return on t"e networt" of about 5#E? Mari)o "a! 2erformed !trongly in t"e la!t two year! to ri!e from a low le*el of .2E to nearly ,E. Fi(ure ?L
R()W
0.400 0."00 0.300 R()W 0.!00 0.300 0.200 0.100 0.000 200!-03 2003-0" Year I&C 5ari o 677 200"-04 0.343 0.323 0.24! 0.384 0.332 0.2!0 0.231 0.384 0.3"3

Return on "apital Employe' 6RO"E7) A))ording to t"e return on )a2ital em2loyed? t"e )om2any t"at "a! 2erformed t"e be!t (among t"e t"ree) in term! of wealt" )reation for t"e !"are"older! would be @indu!tan 5e*er 5imited. 0rom a figure of about ...#E in 2,,-8,5? t"e )om2any now "a! a R3$' of o*er 55E in t"e market. T"e 2rofit margin! for 13PA5 1R36P "o*er around t"e .5E mark w"ile t"at of Mari)o 5imited mo*e around 25E. Fi(ure ?L%
R(C"
0.400 0."00 0.300 R(C" 0.!00 0.300 0.200 0.100 0.000 200!-03 2003-0" Year I&C 5ari o 677 200"-04 0.334 0.329 0.2!8 0.143 0.343 0.3!4 0.331 0.339 0.233

Return on Total Assets 6ROTA7) <"en )on!idered on t"e ba!i! of R3TA? 13PA5 1R36P fare! a! well a! @55 w"i)" "ad been better in term! of R3$' and R3;<. T"e figure! for t"e two )om2anie! "o*er around t"e 25E mark in t"e year! under )on!ideration. T"e )orre!2onding figure for t"at of Mari)o i! about 2,E (on an a*erage) and range! from a low of &5.2E to a "ig" of 2..5E. T"i! i! 2re!ented in t"e diagram below. Fi(ure ?L%%
R('A
0.300 0.230 0.200 R('A 0.130 0.100 0.030 0.000 200!-03 2003-0" Year I&C 5ari o 677 200"-04 0.223 0.231 0.189 0.2!3 0.230 0.132 0.23" 0.233 0.233

Earnin(s per share) 6EP&7) T"e earning! 2er !"are of 13PA5 1R36P and Mari)o and 13PA5 1R36P "a*e dra!ti)ally fallen o*er t"e la!t t"ree year!. T"i! i! be)au!e t"ere "a! been a !to)k !2lit in bot" )a!e! t"at "a! broug"t down t"e fa)e *alue of t"e !"are! in t"e market re!ulting t"ereby in an in)rement in t"e number of e>uity !"are! a*ailable for trade. T"erefore? de!2ite an in)rea!e in t"e total earning! offered by t"e )om2any? t"e earning! 2er !"are fall dra!ti)ally. 3n t"e ot"er "and? t"e number of !"are! of @55 in t"e market remain! !teady and t"e earning! (PAT) in)rea!e! e*ery year. T"i! t"erefore re!ult! in an in)rement in t"e earning! w"en )on!idered in 2er !"are term!. Fi(ure ?L%%%

"%#
1".000 1!.000 12.000 10.000 "%# 8.000 ".000 !.000 2.000 0.000 200!-03 0.883 3.!!8 ".133 0.0"0 2003-0" Year I&C 5ari o 677 0.042 1.83! ".944 12.093 1!.949

200"-04

<ivi'en' per share) 13PA5 1R36P 5imited and Mari)o o*er t"e la!t few year! "a*e e(2erien)ed a "uge fall in t"e di*idend di!tributed 2er !"are be)au!e of rea!on! mentioned abo*e. T"e earning! 2er !"are for t"e t"ird )om2any? @55? !"ow! an in)rea!e in t"e di*idend di!tributed 2er !"are owing to t"e in)rea!ing di*idend 2aid by t"e management to t"e !"are"older!. Fi(ure ?L%9
D%#
4.000 ".000 3.000 D%# !.000 3.000 2.000 1.000 0.000 200!-03 0.312 2.300 2.300 0.02" 2003-0" Year I&C 5ari o 677 0.031 0."!1 3.330 2.999 ".200

200"-04

"FO to PAT) 3t"er )om2anie! like Mari)o and @55? o2erating in t"e !ame !egment "a*e followed more or le!! t"e !ame trend like 13PA5 1R36P. T"oug"? on a larger !)ale? it !"ould be ob!er*ed t"at Mari)o "a! re2orted a &75E in)rea!e in t"e ratio w"en )om2ared t"ree year! ba)k. @55 on t"e ot"er "and "a! re2orted a marginal fall of about 5E in t"e ratio for t"e 2eriod. Fi(ure ?L9

C*(!%A' Ratio
2.000 1.800 1."00 1.!00 1.200 1.000 0.800 0."00 0.!00 0.200 0.000 1.894 1.""9 1.083 0.42! 0.38" 1.!33 0.938 1.03" 0.832

C*(!%A' Ratio

200!-03

2003-0" Year I&C 5ari o 677

200"-04

<7 #ar+et @ase' Returns

PriceAEarnin( Ratio 6PER7) T"e indu!try "a! altoget"er !"own an in)rea!e in t"e Pri)e8'arning! ratio. /t i! ob!er*ed t"at in t"e la!t t"ree year!? t"e *alue of PM' "a! ri!en for all t"e t"ree )om2anie!? w"et"er or not t"e )om2any "a! gone in for a !to)k !2lit. Among t"e t"ree? Mari)o "a! e(2erien)ed t"e "ig"e!t in)rement in t"e ratio (in ab!olute term!)? after 13PA5 1R36P 5imited it!elf. T"e following gra2" refle)t! t"e trend in t"e ratio t"at "a! been ob!er*ed in t"e!e t"ree )om2anie! o*er t"e la!t t"ree year!. Fi(ure ?L9%
%+" Ratio
33.000 30.000 23.000 %+" Ratio 20.000 13.000 10.000 3.000 0.000 2.009 1.013 200!-03 2003-0" Year I&C 5ari o 677 200"-04 3."0! 20.934 2".339 32."4! 32.03" 33.0"3 31.038

#ar+et "apitali5ation) A)ro!! )om2anie! too? t"e market )a2italiAation "a! !"own a net in)rea!e re2re!enting a good growt" )om2onent in t"e !e)tor and t"e )onfiden)e of t"e buyer! w"o )ontinue to buy t"e !to)k! of !u)" )om2anie!. @55 and Mari)o "a*e )on!i!tently !"own an in)rea!e in t"e market )a2italiAation for t"e year! under )on!ideration. T"i! i! gra2"i)ally de2i)ted a! below.

Fi(ure ?L9%%
Market Capitali,ation
800000.00 400000.00 In Rs. Million "00000.00 300000.00 !00000.00 300000.00 200000.00 100000.00 0.00 33!330.00 313848.!8 1!09.!0 200!-03 3130.8! 2003-0" Year I&C 5ari o 677 34331.40 200"-04 !3!193.3! 3"3830.00 !44844.3" 432040.00

Price @oo+ Ratio) A)ro!! )om2anie!? 13PA5 1R36P 5imited rate! 2oorly for t"e Pri)e Fook Ratio. /n fa)t? w"ile Mari)o !"ow! a !tu2endou! 2erforman)e for t"e t"ree year! refle)ting a 277#E in)rea!e in t"e PF ratio? 13PA5 1R36P re2ort! only a meager 2 E in)rea!e. Al!o? @55 re2ort! a & E in)rement in t"e ratio? but !till manage! to "old it! 2o!ition at t"e !e)ond le*el 2u!"ing 13PA5 1R36P to t"e lowe!t figure in t"e indu!try w"en )om2ared a)ro!! t"e ot"er two )om2anie!. Fi(ure ?L9%%%

%& Ratio
23.00 20.00 %& Ratio 13.09 13.00 10.00 3.00 0.00 !.18 0."3 200!-03 4.84 1.20 2003-0" Year I&C 5ari o 677 3.2" 18.83 19.!1 14.33

200"-04

#. Du8Pont Analy!i!
Fi(ure ?L%?
R3$' U 0.3"

32erating De)i!ion U ,.&97

/n*e!tmen t De)i!ion U &.29

0inan)ing De)i!ion U &.-&

$31S M Sale! U ,.-2

32erating '(2en!e! M Sale! U ,..

De2re)iati on M Sale! U ,.,2

Sale! M 0i(ed A!!et! U ...2

Sale! M /n*entory U 5.,-

Sale! M Debtor! U 2#.,#

Sale! M 3t"er )urrent A!!et! U 7.#5

Total A!!et! M Debt U ,.,&

Total A!!et! M ;etwort" U ,.#,

T"e abo*e diagram !"ow! t"e Du82ont analy!i! for 13PA5 1R36P limited for t"e year 2,, 8,#. T"e return on t"e )a2ital em2loyed (R3$') a! 2er t"e )al)ulation !"own abo*e i! about . E. T"i! )an be broken down into 32erating de)i!ion ratio? PF/TMSale!? /n*e!tment de)i!ion ratio? Sale!MTotal A!!et! and 0inan)ing de)i!ion ratio? Total A!!et!M$a2ital em2loyed. 0urt"er? ea)" of t"e de)i!ion! )an be broken down to arri*e at t"e !ub8!egment wi!e ratio. T"e )om2any )an )ut it! e(2en!e! w"ere*er t"e ratio i! *ery "ig" w"en )om2ared to t"e ot"er 0M$1 indu!trie! in t"e )ountry !o a! to e)onomiAe it! o2eration!Mfinan)ingMin*e!tment!. T"e ma)ro le*el analy!i! along wit" a 2art of t"e mi)ro le*el analy!i! "a! been done earlier. <e now look at t"e *alue! t"at we find out after 2utting t"em in a table to make a )om2arati*e !tudy. Table %
-alues .or /001!02 C(3#+#ales (perating "6penses+#ales Depre$iation+#ales #ales+*i6ed Assets #ales+In entories #ales+Debtors #ales+(ther Assets 'otal Assets+Debt 'otal Assets+Capital 'otal Assets+Reser es 3(%AL 3R(4% 0.!2 0.3" 0.02 3.32 3.0! 24.04 !.1" 4".4! !0.98 1.!9 Mari$o 0.33 0.33 0.03 4.!0 4.93 34.41 3."0 2.89 11.92 3.32 5LL 0.!9 0.3" 0.01 8.8" 8."3 30.!1 3.31 100.81 33.14 2.92

0rom t"e table abo*e? we !ee t"at t"e $31SMSale! of all t"e )om2anie! under )on!ideration are about t"e 5,E mark. T"oug"? 13PA5 1R36P lag! be"ind it! )om2etitor! on t"i! 2arameter. <"at 13PA5 1R36P need! to do i! redu)e t"e )o!t of )on!um2tion of good! t"at it buy! a! raw material! from t"e market. /t "a! to make bulk 2ur)"a!e! and need! to in)rea!e it! negotiating ability t"roug" a !tronger 2ur)"a!e team. 32erating '(2en!e!MSale! i! almo!t t"e !ame for all t"e t"ree )om2etitor! and t"erefore 13PA5 1R36P i! u!ing t"e be!t 2ra)ti)e "ere for t"e o2erational e(2en!e!. De2re)iationMSale! i! al!o at a negotiable le*el for t"e )om2any. /n fa)t? t"e )om2any "old! a better 2o!ition w"en )om2ared to Mari)o. T"e )om2any )an !till try and a!!ume a greater life )y)le? if 2o!!ible? for it! ma)"inery and ot"er fi(ed a!!et! to )ome at 2ar wit" t"e ot"er leading )om2etitor! in t"e domain for t"e !egment. T"e )om2any maintain! a "ig" amount of fi(ed a!!et! t"at a))ount! for t"e "ig" de2re)iation. T"i! i! refle)ted "ere by t"e !mall *alue of Sale!M0i(ed A!!et a! refle)ted by t"e )om2anyB! balan)e !"eet. T"e )om2any al!o "a! a 2oli)y of maintaining a larger !to)k of in*entorie! t"an it! ot"er )om2etitor!. T"i! i! refle)ted in t"e low amount of Sale!M/n*entorie! t"at t"e )om2any 2o!!e!!e!. T"e )om2any maintain! a low figure for Sale!MDebtor! w"i)" i! a good !ign. T"e )om2any !"ould make !ure t"at !u)" kind of an ad*antage o*er ot"er! i! maintained. Sale!M3t"er A!!et! for t"e )om2any i! at a medium le*el. T"e )om2any !"ould try and take mea!ure! to o*ertake t"e leader by redu)ing t"e amount of ot"er a!!et! maintained or )on*er!ely in)rea!ing t"e !ale! of t"e )om2any if !u)" le*el! of a!!et! are to be maintained. Re!er*e! are t"e liability of t"e )om2any. 13PA5 1R36P 5imited maintain! a low le*el for t"e Total A!!et! to Re!er*e! ratio t"ereby im2lying a larger re!er*e t"an re>uired. T"e )om2any !"ould 2ay off t"e re!er*e! to t"e !"are"older! !o a! to mo*e toward! t"e better )ir)le of )om2anie! 2erforming t"e be!t in t"e indu!try. T"e "ig"er t"e figure for t"e Total A!!et! to Debt? t"e better i! t"e )om2any. A larger debt im2lie! a larger inability on 2art of t"e )om2any to 2ay off it! debtor!. A larger le*el of fi(ed a!!et! )an fund t"e 2ayment of debt if t"e )urrent a!!et! of t"e )om2any )annot "el2 in funding t"e !ame. Similarly? t"e )om2any !)ore! *ery well for t"e ratio of t"e Total A!!et! to $a2ital and need! to )ontinue to maintain !u)" "ig" !tandard!.

7. ')onomi) Value Addition

')onomi) Value Added ('VA)? or e)onomi) rent? i! a widely re)ogniAed tool t"at i! u!ed to mea!ure t"e effi)ien)y wit" w"i)" a )om2any "a! u!ed it! re!our)e!. /n ot"er word!? 'VA i! t"e differen)e between return a)"ie*ed on re!our)e! in*e!ted and t"e )o!t of re!our)e!. @ig"er t"e 'VA? better t"e le*el of re!our)e unitiAation. 'VA i! )al)ulated a! t"e differen)e between t"e ;et Profit (after ta( but before intere!t) le!! )o!t of )a2ital em2loyed (e>uity O debt). /ntere!t i! not taken a! an e(2en!e !in)e t"i! i! 2art of )o!t of )a2ital (intere!t on debt). T"ere i! no mentioning of t"e e)onomi) *alue added for t"e )om2any in t"e balan)e !"eet. <' t"erefore try and )al)ulate t"e 'VA wit" t"e a!!um2tion! t"at we take a! 2er t"e indu!try trend. <e fir!t take a !im2le regre!!ion analy!i! to )al)ulate t"e a*erage *alue! of V:dB and V:eB by looking at t"e )om2anie! in t"e 0M$1 indu!try. Table %% 2' 2e Estimate' 9alues 5.9,E & ..7E <e now )al)ulate t"e ;3PAT and t"e $o!t of $a2ital a! 2er t"e following formula for t"e t"ree )om2anie! for t"e year 2,,#. T"e following table !"ow! t"e *alue!. Table %%%
*igures are in Rs. $rores %A' Interest 'a6 )(%A' 3(%AL 3R(4% 2",999.40 32.80 0.312! /20//./7 Mari$o 1,129.10 20".00 0.2!48 8/9:.01 5LL 13,39".40 104.30 0.1430 87:97.::

<e )al)ulate t"e *alue! of ;3PAT for t"e )om2anie! a! gi*en abo*e. <e look at t"e $o!t to em2loy t"e )a2ital after t"at. Table %9
*igures are in Rs. $rores Debt "quity Capital ";ployed WaCC Cost o. Capital 3(%AL 3R(4% 2,009.00 104,3!1."0 80<=770.10 0.1"19 822>>.97 Mari$o 2,309.40 1,923.80 :=:>>.70 0.10!3 :1>.8< 5LL 42".00 24,23!.90 /2=<10.<0 0.1"11 :70>.<8

0inally? we )om2ute t"e e)onomi) *alue added for t"e )om2anie! for t"e year 2,,#? by )al)ulating t"e differen)e between t"e ;3PAT and t"e $o!t of $a2ital "en)e obtained. Table 9

*igures are in Rs. $rores "$ono;i$ -alue Added

3(%AL 3R(4% </99.:8

Mari$o 9/0.92

5LL 80<98.7>

T"u!? we !ee t"at all t"ree )om2anie! "a*e re2orted 2o!iti*e e)onomi) *alue addition!W t"e magnitude of *alue addition differ! for ea)" of t"e 2layer!. A))ording to t"e figure! "en)e obtained? @indu!tan 5e*er add! t"e "ig"e!t *alue to it! 2rodu)t! and t"erefore i! among t"e better )om2anie! in t"e 0M$1 /ndu!try. /t "a! al!o been noted in t"e ratio analy!i! t"at @55 i! alway! de)ently !)ored w"en )om2ared to t"e ot"er two )om2anie! w"i)" are !een at bot" e(treme!. 13PA5 1R36P on t"e ot"er "and i! an e>ually good )om2any? t"oug"W we belie*e t"ere are )ertain area! t"at 13PA5 1R36P 5imited )an im2ro*e it! 2o!ition u2on. T"e!e "a*e been mentioned in t"e Ratio and Du82ont analy!i! of t"e )om2any a! !"own abo*e in t"e re2ort. 0inally? Mari)o i! an u2)oming )om2any in t"e 0M$1 /ndu!try and i! doing 2retty well in t"e indu!try. T"e )om2any "a! refle)ted tremendou! growt" in t"e return on in*e!tment and i! al!o )reating a 2o!iti*e e)onomi) *alue. T"e )om2any 2romi!e! to make "uge im2a)t on t"e o*erall indu!try and emerge a! one of t"e leader! of tomorrow.

9. A))ounting Poli)ie!
"onvention To 2re2are finan)ial !tatement! in a))ordan)e wit" a22li)able A))ounting Standard! in /ndia. A !ummary of im2ortant a))ounting 2oli)ie!? w"i)" "a*e been a22lied )on!i!tently? i! !et out below. T"e finan)ial !tatement! "a*e al!o been 2re2ared in a))ordan)e wit" rele*ant 2re!entational re>uirement! of t"e $om2anie! A)t? &95 . @asis of Accountin( To 2re2are finan)ial !tatement! in a))ordan)e wit" t"e "i!tori)al )o!t )on*ention modified by re*aluation of )ertain 0i(ed A!!et! a! and w"en undertaken a! detailed below. Fi:e' Assets To !tate 0i(ed A!!et! at )o!t of a)>ui!ition in)lu!i*e of inward freig"t? dutie! and ta(e! and in)idental e(2en!e! related to a)>ui!ition. /n re!2e)t of ma=or 2ro=e)t! in*ol*ing )on!tru)tion? related 2re8o2erational e(2en!e! form 2art of t"e *alue of a!!et! )a2italiAed. '(2en!e! )a2italiAed al!o in)lude a22li)able borrowing )o!t!. To ad=u!t t"e original )o!t of im2orted 0i(ed A!!et! a)>uired t"roug" foreign )urren)y loan! at t"e end of ea)" finan)ial year by any )"ange in liability ari!ing out of e(2re!!ing t"e out!tanding foreign loan at t"e rate of e()"ange 2re*ailing at t"e date of Falan)e S"eet. To )a2italiAe !oftware w"ere it i! e(2e)ted to 2ro*ide future enduring e)onomi) benefit!. $a2italiAation )o!t! in)lude li)en!e fee! and )o!t! of im2lementation M !y!tem integration !er*i)e!. T"e )o!t! are )a2italiAed in t"e year in w"i)" t"e rele*ant !oftware i! im2lemented for u!e. To )"arge off a! a re*enue e(2enditure all u2 gradation M en"an)ement! unle!! t"ey bring !imilar !ignifi)ant additional benefit!. <epreciation To )al)ulate de2re)iation on 0i(ed A!!et! and /ntangible A!!et! in a manner t"at amortiAe! t"e )o!t of t"e a!!et! after )ommi!!ioning? o*er t"eir e!timated u!eful li*e! or? w"ere !2e)ified? li*e! ba!ed on t"e rate! !2e)ified in S)"edule P/V to t"e $om2anie! A)t? &95 ? w"i)"e*er i! lower? by e>ual annual in!tallment!. 5ea!e"old 2ro2ertie! are amortiAed o*er t"e 2eriod of t"e lea!e. To amortiAe )a2italiAed !oftware )o!t! o*er a 2eriod of fi*e year!. Revaluation of Assets A! and w"en 0i(ed A!!et! are re*alued? to ad=u!t t"e 2ro*i!ion for de2re)iation on !u)" re*alued 0i(ed A!!et!? w"ere a22li)able? in order to make allowan)e for )on!e>uent additional diminution in *alue on )on!ideration! of age? )ondition and une(2ired u!eful life of !u)" 0i(ed A!!et!W to tran!fer to Re*aluation Re!er*e t"e differen)e between t"e

written u2 *alue of t"e 0i(ed A!!et! re*alued and de2re)iation ad=u!tment and to )"arge Re*aluation Re!er*e A))ount wit" annual de2re)iation on t"at 2ortion of t"e *alue w"i)" i! written u2. %nvestments To !tate $urrent /n*e!tment! at lower of )o!t and fair *alueW and 5ong Term /n*e!tment!? in)luding in Loint Venture! and A!!o)iate!? at )o!t. <"ere a22li)able? 2ro*i!ion i! made w"ere t"ere i! a 2ermanent fall in *aluation of 5ong Term /n*e!tment!. %nventories To !tate in*entorie! in)luding work8in82rogre!! at )o!t or below. T"e )o!t i! )al)ulated on weig"ted a*erage met"od. $o!t )om2ri!e! e(2enditure in)urred in t"e normal )our!e of bu!ine!! in bringing !u)" in*entorie! to it! lo)ation and in)lude!? w"ere a22li)able? a22ro2riate o*er"ead! ba!ed on normal le*el of a)ti*ity. 3b!olete? !low mo*ing and defe)ti*e in*entorie! are identified at t"e time of 2"y!i)al *erifi)ation of in*entorie! and? w"ere ne)e!!ary? 2ro*i!ion i! made for !u)" in*entorie!. &ales To !tate net !ale! after dedu)ting ta(e! and dutie! from in*oi)ed *alue of good! and !er*i)e! rendered. %nvestment %ncome To a))ount for /n)ome from /n*e!tment! on an a))rual ba!i!? in)lu!i*e of related ta( dedu)ted at !our)e. Propose' <ivi'en' To 2ro*ide for Di*idend! (in)luding in)ome ta( t"ereon) in t"e book! of a))ount a! 2ro2o!ed by t"e Dire)tor!? 2ending a22ro*al at t"e Annual 1eneral Meeting. Employee @enefits To make regular mont"ly )ontribution! to *ariou! Pro*ident 0und! w"i)" are in t"e nature of defined )ontribution !)"eme and !u)" 2aid M 2ayable amount! are )"arged again!t re*enue. To admini!ter !u)" 0und! t"roug" duly )on!tituted and a22ro*ed inde2endent tru!t! wit" t"e e()e2tion of Pro*ident 0und and 0amily Pen!ion )ontribution! in re!2e)t of 6nioniAed Staff w"i)" are !tatutorily de2o!ited wit" t"e 1o*ernment. To admini!ter t"roug" duly )on!tituted and a22ro*ed inde2endent tru!t!? *ariou! 1ratuity and Pen!ion 0und! w"i)" are in t"e nature of defined benefit !)"eme. To determine t"e liabilitie! toward! !u)" !)"eme! and toward! em2loyee lea*e en)a!"ment by an inde2endent a)tuarial *aluation a! 2er t"e re>uirement! of A))ounting Standard %

&5 (re*i!ed 2,,5) on R'm2loyee Fenefit!S. To determine a)tuarial gain! or lo!!e! and to re)ogniAe !u)" gain! or lo!!e! immediately in Profit and 5o!! A))ount a! in)ome or e(2en!e. To )"arge again!t re*enue? a)tual di!bur!ement! made? w"en due? under t"e <orker!B Voluntary Retirement S)"eme. Lease Rentals To )"arge Rental! in re!2e)t of lea!ed e>ui2ment to t"e Profit and 5o!! A))ount. Research an' <evelopment To write off all e(2enditure ot"er t"an )a2ital e(2enditure on Re!ear)" and De*elo2ment in t"e year it i! in)urred. $a2ital e(2enditure on Re!ear)" and De*elo2ment i! in)luded under 0i(ed A!!et!. Ta:es on %ncome To 2ro*ide $urrent ta( a! t"e amount of ta( 2ayable in re!2e)t of ta(able in)ome for t"e 2eriod. To 2ro*ide Deferred ta( on timing differen)e! between ta(able in)ome and a))ounting in)ome !ub=e)t to )on!ideration of 2ruden)e. ;ot to re)ogniAe Deferred ta( a!!et! on unab!orbed de2re)iation and )arry forward of lo!!e! unle!! t"ere i! *irtual )ertainty t"at t"ere will be !uffi)ient future ta(able in)ome a*ailable to realiAe !u)" a!!et!. Forei(n "urrency Translation To a))ount for tran!a)tion! in foreign )urren)y at t"e e()"ange rate 2re*ailing on t"e date of tran!a)tion!. 1ain!M5o!!e! ari!ing out of flu)tuation! in t"e e()"ange rate! are re)ogniAed in t"e Profit and 5o!! in t"e 2eriod in w"i)" t"ey ari!e e()e2t in re!2e)t of im2orted 0i(ed A!!et! w"ere e()"ange *arian)e i! ad=u!ted in t"e )arrying amount of t"e re!2e)ti*e 0i(ed A!!et. To a))ount for differen)e! between t"e forward e()"ange rate! and t"e e()"ange rate! at t"e date of tran!a)tion!? a! in)ome or e(2en!e o*er t"e life of t"e )ontra)t!? e()e2t in re!2e)t of liabilitie! in)urred for a)>uiring im2orted 0i(ed A!!et!? in w"i)" )a!e !u)" differen)e! are ad=u!ted in t"e )arrying amount of t"e re!2e)ti*e 0i(ed A!!et. To a))ount for 2rofitMlo!! ari!ing on )an)ellation or renewal of forward e()"ange )ontra)t! and on maturity or )an)ellation of o2tion! a! in)omeMe(2en!e for t"e 2eriod? e()e2t in )a!e of forward e()"ange )ontra)t! and o2tion! relating to liabilitie! in)urred for a)>uiring im2orted 0i(ed A!!et!? in w"i)" )a!e !u)" 2rofitMlo!! are ad=u!ted in t"e )arrying amount of t"e re!2e)ti*e 0i(ed A!!et. To a))ount for gain!Mlo!!e! on foreign e()"ange rate flu)tuation! relating to )urrent a!!et! and liabilitie! at t"e year end. "laims To di!)lo!e )laim! again!t t"e $om2any not a)knowledged a! debt! after a )areful e*aluation of t"e fa)t! and legal a!2e)t! of t"e matter in*ol*ed.

&e(ment Reportin( To identify !egment! ba!ed on t"e dominant !our)e and nature of ri!k! and return! and t"e internal organiAation and management !tru)ture. To a))ount for inter8!egment re*enue on t"e ba!i! of tran!a)tion! w"i)" are 2rimarily market led. To in)lude under R6nallo)ated $or2orate '(2en!e!S re*enue and e(2en!e! w"i)" relate to t"e enter2ri!e a! a w"ole and are not attributable to !egment!. Financial an' #ana(ement %nformation &ystems To 2ra)ti)e an /ntegrated A))ounting Sy!tem w"i)" unifie! bot" 0inan)ial Fook! and $o!ting Re)ord!X T"e book! of a))ount and ot"er re)ord! "a*e been de!igned to fa)ilitate )om2lian)e wit" t"e rele*ant 2ro*i!ion! of t"e $om2anie! A)t on one "and? and meet t"e internal re>uirement! of information and !y!tem! for Planning? Re*iew and /nternal $ontrol on t"e ot"er. To en!ure t"at t"e $o!t A))ount! are de!igned to ado2t $o!ting Sy!tem! a22ro2riate to t"e bu!ine!! )arried out by t"e Di*i!ion wit" ea)" Di*i!ion in)or2orating into it! $o!ting Sy!tem? t"e ba!i) tenet! and 2rin)i2le! of Standard $o!ting? Fudgetary $ontrol and Marginal $o!ting a! a22ro2riate.

&,. A22endi(
$onden!ed 0inan)ial Statement!
Table 9%

&alan$e #heet
Capital Reser es L'L CL 'otal *i6ed Assets In est;ents CA 'otal /001 3,4"2.20 103,449.!0 2,009.00 !!,"19.10 87:=81<.20 39,4"0.00 23,038.90 "9,330.80 87:=81<.20 /007 3,433.20 89,24".90 1,!"".80 39,"33."0 8>:=87:.70 !4,"12.10 29,981.00 3",3"1.!0 8>:=87:.70 /00: 2,!9!.30 44,331.!0 2,!"9.80 3!,89".80 882=></.>0 !3,83".20 33,291.30 !0,2"!.80 882=></.>0

Table 9%%

In$o;e #tate;ent
#ales C(3# (perating "6penses Depre$iation %&I' Interest %&' 'a6 %A' /001 198,!13.!0 8!,128.90 41,334.30 3,"29.20 ><=/<<.90 32.80 ><=/12.00 12,2"4.30 /1=<<<.20 /007 1"3,103.10 "!,"31.30 "!,339.00 3,323.!0 >/=988./0 119.30 >/=1<8.<0 10,338.!0 //=>7>.70 /00: 133,833.90 !8,!"8.90 34,101.30 3,128.40 /2=877.00 !2!.30 /1=2>0.20 !,81".40 /8=<8:.00

Table 9%%%

Cash *lo? #tate;ent

(pening CI5 C** C*I C*( Closing CI5 /001 9,449.!0 -10,3!9.00 -10,8!1.30 22,!4".10 80=917.00 /007 1,244.00 -9,"34.40 -2,824.40 20,9"".10 <=222.20 /00: 1,098.80 -!,81"."0 -10,933."0 13,842.00 8=/00.10

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". Class notes