BY: Jatin Johar Jitendra Kumar Tiwari Mahesh Singh Leena Bhatia Amit Kumar Singh

INTRODUCTION
Infiniti Retail operates a national chain of multi-brand electronics stores under the brand name Croma. It is a wholly owned subsidiary of Tata Sons, the holding company of the Tata Group. The company has a technical and sourcing agreement with Australian retail giant Woolworths. Under the arrangement Infiniti Retail owns and runs retail operations in India while Woolworths provides technical support and strategic sourcing facilities through its global network.

AREAS OF BUSINESS

The Croma chain of stores offers, in different cities of India, a wide range of consumer electronics products across categories and brands. The stores are spread over 12,000 to 20,000 sq ft and have more than 6,000 products and 180 brands in eight categories: home entertainment, small appliances, white goods, computers, communication, music, imaging and gaming software.

RATIO ANALYSIS 1. Profitabilty Ratios

Provogue had issued all its shares in the market by March 2009 and after that the company has not issued any shares in the market which can be clearly be seen as in the year 2010, 2011 and 2012 the share application money has been O%. This can explain the decreasing trend of the Equity share capital from the year 2010. This shows that Provogue has stopped depending on Public borrowings and its public debt is decreasing yearly. Provogue is financing itself by way of loans(Secured More and Unsecured Less). Provogue has an increasing trend in taking of loan as we can see from 100% in 2008 it has increased to 202.82% in 2012 in the secured loans category whereas in addition to this Unsecured loans have decreased from 100% in 2008 to 45.52% in 2009 but ever since they have been increasing and reached 87.67%. This shows that Provogue has been financing itself through financial institutions and other sources. Reserves here show the part of profit which has been increasing till the year 2011 but in 2012 it has declined. This can be a result of increasing financial debts in the form of loans. Thus, we see that the Total debts of Provogue have been on an increasing trend whereas the Total Liabilities have increased till 2011 but in 2012 they have decreased. The fixed assets of Provogue have not changed since the year 2010 showing that the company has not invested in fixed assets since then. The inventory and debtors of Provogue have been increasing over the years but the cash and bank balance increased majorly in 2010 when the company issued its shares but after that the trend has been decreasing. But on the whole the Current Assets have constantly been in an increasing trend showing an increase from 100% in 2008 to 204.89% in 2012. The Current Liabilities of Provogue have been Fluctuating a lot as it was 81.02% in 2009 then decreased to 18.56% in 2010, then decreases to17.69% in 2011 and finally increased to 26.74% in 2012. The Net Current Assets have had an increasing trend increasing from 100% in 2008 to 179.54% in 2012.

VERTICAL ANALYSIS
Mar '12 Sources Of Funds Total Share Capital Equity Share Capital Reserves Networth Secured Loans Total Debt Total Liabilities Mar '11 Mar '10

5.11 5.11 88.67 93.8 6.19 6.19 100 Mar '12

6.06 6.06 91.19 97.26 2.73 2.73 100 Mar '11

6.45 6.45 85.28 91.73 8.27 8.27 100 Mar '10

Application Of Funds Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Current Liabilities Provisions

30.97 12.9 18.06 0.53 13.13 13.34 20.99 9.62 43.97 10.33 32.6 86.92

33.07 13.12 19.95 1.05 13.2 18.1 14.66 1.01 33.77 10 45.88 89.66

32.09 11.15 20.96 1.39 17.22 11.4 12.64 1.16 25.21 10 40.81 76.02

12.36 6.28

14.97 8.91

9.72 5.88

Total CL & Provisions Net Current Assets Total Assets

18.64 68.26 100

23.87 65.78 100

15.61 60.4 100

Provogue is been very conservative in distributing in its sources of funds under various heads . Share capital occupies 2.48% in 2010, and 1.37%in 2012.The percentage of share capital has been constantly decreasing that means it has decreased its no. of shareholder and has lesser the number of shares issued in the market, that means provouge has lesser its debt with the passing year. Provogue has been continuously decreasing its percentage of reserve & surplus .The percentage of reserve and surplus is 73.88% in 2010 and 64.79% in 2012. The continous decrease in reserve n surplus means provogue has been increasing its distribution in various provisions, it means that the company is reducing its retained earning with the years .The company should try to maintain its percentage of reserve and surplus so that it could be utilized in future shortcomings. Provogue has been continous in increasing the percentage age of secured loans was 23.05% and with a little increase in 2011 it is24.46%. In 2012, it has increased with a considerable rate of 32.5%.Provogue has indulged in taking loans .The main source of fund for provogue is through secured loans. Occupies the second largest percentage is through secured loans . With the increase in the percentage of secured loans provouge has been also increased the percentage of unsecured loan also.in 2010 it was 0.48% which increased to 0.68% in 2011 and 1.31% in 2012 although it occupies a minor share in the source of fund.Provogue is indulged increasing the percentage of insecured loans ,that is increasing the share of long term liabilities. Therefore ,the share of total debt has also increased with the years, the main source of funds for provogue is the long term debts and reserve and surplus. Provogue utilizes its funds into different categories . The percentage of each head shows much share does it has in the total assets . Net block occupies 7.50%in 2010,6.74%in 2011 and 6.99% in 2012. The amount of NET BLOCK comprises of the fixed assets ,that means provogue investments into fixed asset has been declining. Provogue has decline it shows of capital in work in progress that means most of its capital has been utilized fully and only a little amount of capital is 2.47%in 2010,0.03% in 2011 and 2012 is 0.72%. Provogue percentage of investment has been declined with the year that means has decreased its investments .In 2010 it is 31.5%,29.64% in 2011 and 16.39% in 2012 although investment occupies a high percentage in assets. Inventories ar being regarded as the main component of assets therefore it has been a large percentage in the assets. Provogue has been increasing its inventories with the year that means flow of inventoriesis in the profitable stage occupies 31.54% in 2010,27.77% in 2011 and 35.36% in inventories. In 2012 ,the percentage of inventory has been decreased and closing stock has increased.

Total current asset include sundary debtors and cash balances. The total share of current assets in provouge .current asset means that can be converted into cash easily ,the percentage of current asset have been consistent in maintaining its current asset properly. Provougue has also indulged in giving a large percentage of its asset as loans and advances that means interest earened by loans and advances with year has also increased in provogue.

Ratios of Provogue
Mar '12 Mar '11 Mar '10 Mar '09 Mar '08

Investment Valuation Ratios Face Value Dividend Per Share Profitability Ratios Operating Profit Margin(%) Profit Before Interest And Tax Margin(%) Gross Profit Margin(%) Net Profit Margin(%) Return On Capital Employed(%) Return On Net Worth(%) Liquidity And Solvency Ratios Current Ratio Quick Ratio Debt Equity Ratio Long Term Debt Equity Ratio Interest Cover Management Efficiency Ratios Inventory Turnover Ratio Debtors Turnover Ratio Investments Turnover Ratio Asset Turnover Ratio 2.09 3.15 2.09 5.4 2.08 3.6 2.08 5.37 2.19 4.14 2.19 4.58 1.9 4.32 1.9 3.96 2.21 5.46 2.21 5.42 1.3 4.37 0.51 0.08 1.96 1.72 6.16 0.34 0.1 3.29 1.88 5.56 0.31 0.12 3.4 1.92 4.91 0.22 0.08 3.72 1.55 2.5 0.46 0.21 3.56 9.79 7.66 7.85 4 7.6 4.55 12.46 10.07 10.34 5.78 7.48 4.55 10.8 7.94 8.25 5.67 6.35 4.03 9.97 6.86 7.31 7.75 5.86 4.37 14.16 11.44 11.74 7.52 10.4 8.21 1 0.1 2 0.25 2 0.2 2 0.3 10 1.75

Mar '12 Earnings Per Share Book Value 2.19 48.05

Mar '11 2.92 64.07

Mar '10 2.48 61.44

Mar '09 2.53 57.81

Mar '08 12.99 158.07

INTER-COMPANY ANALYSIS OF PROVOGUE

By looking at these Ratios we can say that the Return on Capital Employed has been constantly increasing over the four years(from 2009-2012). The net profit margin has been variating but eventually it has been decreasing. Thus, we can say that the company is making profits as its return on investment is increasing but as for the net profit margin it can variate as the operating costs of the company changes every year. The Company is not in a very good position with its debtors as the debtors turnover ratio has been decreasing. The companys Inventory Turnover ratio has not changed majorly in the past five years. Provogues asset turnover ratio has been increasing which shows that the company is able to utilize its assets in a proper way and get profits out of the resources it has available. Provogue is not at an insolvency risk as we can clearly see that its Debt to Equity Ratio is quite low which can be understood as the company has not taken any public borrowing for its financing. Its purely financing itself through financial institutions and other sources. In the Capital Market the face value of the share has decreased from Rs.10 to Re.1. The dividend yield has also dropped from1.75 to 0.1. This can be understood as Provogue is constantly giving back its share capital and decreasing its public borrowings.

Killer is the first truly international Indian brand created and owned by Kewal Kiran Clothing Limited. A brand that is youthful, trendy, vibrant and with an attitude. The focus of the brand is 16-30 years segment. Killer enjoys a leadership position in the premium menswear in this segment. Launched in 1989, Killer, today is a power brand. Killer jeans is one of the largest selling denim brand in India. Starting as a jeans brand, the Killer product portfolio today, includes women's and men's ready-to-wear jeans, trousers, cargos, capris, shirts, jackets, tee-shirts, innerwear (vests and briefs), footwear (shoes, socks), eye-wear and other addictive accessories(belts, bracelets etc). The 'Killer for her' range (an exclusive style statement for women) was launched in 2007. A Killer product is not just an apparel, it is a style statement. For an Indian, Killer has, since long exemplified the highest standards of Indian Western denim wear. Over the last two decades, the Killer design team has constantly evolved and delivered on-trend apparel and accessories. Innovations in style, innovations in designs, innovation in crafting the product have all contributed to building the Killer brand value. Killer brand communication is chronicled in the annals of Indian advertising. The muchtalked-about advertising campaigns in conjunction with the passion, warmth and international attitude connect makes Killer an iconic Indian brand. The print and outdoor campaign accentuate the product offering adding a sensuous tone to the brand image and product. Killer products are sold in over 1600 stores across the country through various life style stores like Shoppers' Stop, Lifestyle, Central and Westside. Killer is also available at other multi-brand outlets including KKCL's K-Lounge. Since 2006, over 35 Killer Exclusive Brand Stores enable the brand to be closer to its consumers and evolve the brand with the changing times.

Profit & Loss account of Killer In Rs. Cr.

Mar '12 Income Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income Expenditure Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Admin Expenses Miscellaneous Expenses Total Expenses 132.57 4.37 29.24 18.98 41.66 3.39 230.21 Mar '12 Operating Profit PBDIT Interest PBDT Depreciation Profit Before Tax Extra-ordinary items PBT (Post Extra-ord Items) Tax Reported Net Profit Total Value Addition Equity Dividend Corporate Dividend Tax Per share data (annualised) Shares in issue (lakhs) Earning Per Share (Rs) Equity Dividend (%) Book Value (Rs) 123.25 42.3 170 183 123.25 37.51 165 160.45 123.25 26.38 60 142.14 123.25 11.57 30 122.76 123.25 17.23 40 114.7 73.35 84.92 2.41 82.51 6.23 76.28 0.02 76.3 24.17 52.14 97.64 20.95 3.4 99.51 3.11 26.13 13.62 32.36 2.9 177.63 Mar '11 68.37 77.04 2.06 74.98 5.73 69.25 -0.11 69.14 22.91 46.23 78.1 20.34 3.33 68.18 2.62 21.38 8.87 26.24 3.97 131.26 Mar '10 47.78 56.92 2.33 54.59 5.84 48.75 -0.05 48.7 16.19 32.52 63.08 7.4 1.23 53.6 2.4 18.58 3.97 23.63 8.26 110.44 Mar '09 23.41 28.48 2.71 25.77 5.04 20.73 -0.07 20.66 6.4 14.26 56.84 3.7 0.63 74.24 3.37 18.7 8.43 21.68 6.38 132.8 Mar '08 31.25 39.15 2.84 36.31 3.92 32.39 -0.13 32.26 11.15 21.24 58.56 4.93 0.84 326.08 23.7 302.38 11.57 1.18 315.13 236.99 2.71 234.28 8.67 11.72 254.67 175.8 0 175.8 9.14 3.24 188.18 145.09 0 145.09 5.07 -11.24 138.92 160.42 0 160.42 7.9 3.63 171.95 Mar '11 Mar '10 Mar '09 Mar '08

Balance Sheet of Killer Jeans In Rs Crores

Mar '12 Mar '11 Mar '10 Mar '09 Mar '08

Sources Of Funds Total Share Capital Equity Share Capital Reserves Networth Secured Loans Total Debt Total Liabilities 12.33 12.33 213.22 225.55 14.89 14.89 240.44 Mar '12 12.33 12.33 185.43 197.76 5.57 5.57 203.33 Mar '11 12.33 12.33 162.86 175.19 15.8 15.8 190.99 Mar '10 12.33 12.33 138.97 151.3 23.59 23.59 174.89 Mar '09 12.33 12.33 129.04 141.37 27.45 27.45 168.82 Mar '08

Application Of Funds Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Current Liabilities Provisions Total CL & Provisions Net Current Assets Total Assets 74.48 31.04 43.44 1.28 31.58 32.09 50.49 23.14 105.72 24.85 78.4 208.97 29.72 15.12 44.84 164.13 240.43 67.26 26.69 40.57 2.15 26.85 36.81 29.81 2.06 68.68 20.34 93.29 182.31 30.44 18.11 48.55 133.76 203.33 61.33 21.3 40.03 2.67 32.9 21.78 24.13 2.23 48.14 19.1 77.95 145.19 18.58 11.24 29.82 115.37 190.97 61.34 16.43 44.91 0.92 30.82 16.26 20.02 1.65 37.93 17.89 63.6 119.42 15.88 5.31 21.19 98.23 174.88 47.24 11.84 35.4 1.95 11.05 28.12 32.41 0.49 61.02 12.56 67.79 141.37 17.62 3.34 20.96 120.41 168.81

Contingent Liabilities Book Value (Rs)

3.98 183

1.51 160.45

1.83 142.14

3 122.76

6.7 114.7

Trend Analysis of Killer

Total share Equity share capital Reserves Net worth Secured loans Total debtors Total liability Mar-12 Mar-11 Mar-10 Mar-09 100% 100% 100% 100% 100% 100% 100% 100% 165.23% 143.60% 126.20% 107.69% 159% 139.88% 123.92% 107.07% 54.24% 20.29% 57.55% 85.93% 54.24% 20.29% 57.55% 85.94% 142% 120.44% 113.13% 103.59%

Mar '12 Application Of Funds Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Current Liabilities Provisions Total CL & Provisions Net Current Assets Total Assets

Mar '11

Mar '10

Mar '09

157.66% 262.16% 122.71% 65.64% 285.79% 114.11% 155.78% 4722.44% 173.25% 197.85% 115.65% 147.81%

142.37% 225.42% 114.60% 110.25% 242.98% 130.90% 91.97% 420.40% 112.55% 161.94% 137.61% 128.95%

129.82% 179.89% 113.07% 136.92% 297.73% 77.45% 74.45% 455.10% 78.89% 152.07% 114.98% 102.70%

129.84% 138.76% 126.86% 47.17% 278.91% 57.82% 61.77% 336.73% 62.15% 142.43% 93.81% 84.47%

168.671964 172.758229 105.448354 90.1248581 452.694611 542.215569 336.526946 158.982036 213.931298 231.631679 142.270992 101.097328 136.309277 111.087119 95.8143011 81.579603

142.426397 120.449026 113.127184 103.595759

Killer has had a constant Share Capital in the Market for the past five years. This shows that Killer has stopped depending on Public borrowings. Killer is financing itself by way of Secured loans. Killer has a very fluctuating trend in taking of loans as we can see from 100% in 2008 it has decreased to 20.29% till 2011 and then increases to 54.24% in 2012. This shows that Killer has been financing itself through financial institutions and other sources but have majorly depended on their Public Income. Reserves here show the part of profit which has been constantly increasing from 100% in 2008 to 165.23% in 2012. This shows that the company has maintained its profitability in the market. Thus, we see that the Total debts of Killer have been fluctuating whereas the Total Liabilities have constantly increased from 100% in 2008 to 142% in 2012. The fixed assets of Killer have been constantly in an increasing trend as it can be seen that it increased from 100% in year 2008 to 157.66% in 2012 showing that the company has invested in fixed assets. The debtors of Killer have been constantly increasing over the years, the inventory of killer have been in a fluctuating trend as it can be seen that it increased from 100% in year 2008 to 130.90% in 2011 but decreased in the year 2012 to 114.11%. The cash and bank balance increased majorly in 2012. But on the whole the Current Assets have constantly been in an increasing trend showing an increase from 62% in 2009 to 173% in 2012. The Current Liabilities of Killer have increased to 172% in 2011 but then decreased to 168% in 2012. The Net Current Assets have had an increasing trend increasing from 100% in 2008 to 136.30% in 2012.

VERTICAL ANALYSIS

Mar '12 Sources Of Funds Total Share Capital Equity Share Capital Reserves Networth Secured Loans Total Debt Total Liabilities 5.11 5.11 88.67 93.8 6.19 6.19 100 Mar '12 Application Of Funds Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Current Liabilities Provisions Total CL & Provisions Net Current Assets Total Assets 30.97 12.9 18.06 0.53 13.13 13.34 20.99 9.62 43.97 10.33 32.6 86.92 12.36 6.28 18.64 68.26 100

Mar '11

Mar '10

6.06 6.06 91.19 97.26 2.73 2.73 100 Mar '11

6.45 6.45 85.28 91.73 8.27 8.27 100 Mar '10

33.07 13.12 19.95 1.05 13.2 18.1 14.66 1.01 33.77 10 45.88 89.66 14.97 8.91 23.87 65.78 100

32.09 11.15 20.96 1.39 17.22 11.4 12.64 1.16 25.21 10 40.81 76.02 9.72 5.88 15.61 60.4 100

Killer has had a decreasing Share Capital as they have not issued any shares in the market. This shows that Killer has stopped depending on Public borrowings. Killer is financing itself by way of Secured loans. This shows that Killer has been financing itself through financial institutions and other sources but have majorly depended on their Public Income which it had collected earlier. Reserves been a major constituent of the Total Liabilities. This shows that the company has maintained provisions just in case any unavoidable situation arises which may lead to losses. The fixed assets of Killer have contributed to a big portion of the total assets showing that the company has invested in fixed assets. The company has majorly invested in Fixed Deposit as it can be seen that Fixed deposit consist of the maximum portion of Total Assets. The debtors of Killer have been constantly increasing over the years, the inventory of killer have been in a fluctuating. The cash and bank balance increased majorly in 2012 which shows that the company has a lot of cash showing its liquidity is even higher in the market. The Net Current Assets have had an increasing and consist of a major portion of the Total Assets.

Key Financial Ratios of Killer

Mar '12 Investment Valuation Ratios Face Value Dividend Per Share Profitability Ratios Operating Profit Margin(%) Profit Before Interest And Tax Margin(%) Gross Profit Margin(%) Net Profit Margin(%) Return On Capital Employed(%) Return On Net Worth(%) Liquidity And Solvency Ratios Current Ratio Quick Ratio Debt Equity Ratio Long Term Debt Equity Ratio Interest Cover Management Efficiency Ratios Inventory Turnover Ratio Debtors Turnover Ratio Investments Turnover Ratio Asset Turnover Ratio 10.53 7.53 10.53 1.36 Mar '12 Earnings Per Share Book Value 42.3 183 6.71 8.69 6.71 3.5 Mar '11 37.51 160.45 8.45 7.96 8.45 2.88 Mar '10 26.38 142.14 9.36 5.54 9.36 2.38 Mar '09 11.57 122.76 5.86 5.6 5.86 3.42 Mar '08 17.23 114.7 2.8 3.91 0.07 -76.73 3.05 2.96 0.03 -82.58 2.36 4.08 0.09 -30.82 3.3 4.8 0.16 0.11 11.41 3.08 5.32 0.19 0.11 15.16 24.26 21.39 22.2 16.61 32.65 23.11 29.18 25.81 26.73 19.05 34.94 23.37 27.17 22.76 23.85 17.65 26.36 18.56 16.12 12.02 12.65 9.34 14.81 9.42 19.47 16.3 17.03 12.66 20.45 15.02 10 17 10 16.5 10 6 10 3 10 4 Mar '11 Mar '10 Mar '09 Mar '08

INTER-COMPANY ANALYSIS OF KILLER

By looking at these Ratios we can say that the Return on Capital Employed has been constantly increasing over the four years(from 2009-2012). The net profit margin has been variating but eventually it has been above 15. Thus, we can say that the company is making profits as its return on investment is increasing but as for the net profit margin it can variate as the operating costs of the company changes every year. The Company is in a very good position with its debtors as the debtors turnover ratio has been high. The companys Inventory Turnover ratio has changed majorly in the past five years. Killers asset turnover ratio has been fluctuating which shows that the company is still trying out new ways to gain more profits but not able to utilize its assets in a proper way and get optimum profits out of the resources it has availiable. Killer is not at an insolvency risk as we can clearly see that its Debt to Equity Ratio is quite low which can be understood as the company has not taken any public borrowing for its financing. In the Capital Market the face value of the share has remained the same i.e., Rs.10. The dividend yield has also increase from Rs.4 to Rs.17. This can be easily understood as Killer has a very strong return on investment it is able to generate high profits and eventually attain a greater share in the market.

INTRA-COMPANY ANALYSIS
On the basis of the Ratios we can compare the two companies under the following heads: Profitability. Liquidity and Solvency. Operating Efficiency or Turnover Analysis. Capital Market Position. Profitability The profitability of Killer is higher in the Market as we can clearly see the difference in the Return on Investment by both companies. Where Provogue has a return of 7.6 in 2012, Killer has a return of 32.65 in 2012. Here Killer is a clear leader. Liquidity and Solvency The solvency position of both the companies is very strong as both the companies have minimized the debt to equity ratio. This means that both companies dont have heavy long term debts and can easily survive in the market. Here we can see that Provogue has this ratio set at 0.5 whereas, Killer has this ratio set at 0.7. It is a very close relation but here Provogue is in a better position just by a little margin.

Operating Efficiency or Turnover Analysis. Here we see that Killer is better at handling their Debtor whereas, Provogue is better at using its assets. This can be seen by the debtor turnover ratio in which Killer has around 7 and Provogue has around 3. Now the higher the Debtor Turnover Ratio the better it is. So Killer is a winner in this category. But if we see the Assets Turnover Ratio we see that Provogue is around 5 whereas Killer is around 1. Here the higher the Asset Turnover Ratio the better it is. So we can clearly see that in this category Provogue wins. Capital Market Position. The capital market position of Killer is definitely better as we have seen before in this project that Provogue has been decreasing its public borrowings and its share value has decreased whereas for Killer its share value has constantly increased and its dividend yield has also constantly increased.