"FINANCIAL STATEMENT ANALYSIS"

OF J.K. TYRE & INDUSTRIES LTD. (KTP) FOR YE

A CRITICAL ANALYSIS OF HOUSING FINANCE INDUSTRY IN JODHPUR MARKET

J.K. TYRE & INDUSTRIES LTD. (KTP) FOR YEAR "2003-2007"

A Project Report Submitted in Partial Fulfillment of the requirements for Master of business administration JIET School of management Rajasthan technical University, Kota (Raj.)

Submitted By :-

RAJESH CHOUDHARY (MBA III Sem.)

DECLARATION
I here by declare that the project report entitled of COMPARASION OF MAJOR TYRE MANUFACUREING COMPANIES

Submitted In Partial Fulfillment of the requirements for the Degree of Master Of Business Administration. Rajasthan Technical University, Kota (Raj.)

Guidance By :Mr. Ajay Joshi

Submitted By:Anju Delu

Dept. Gen. Manager (W.A.)

(MBA III Sem.)

ACKNOWLEDGEMENT
The report entitled A CRITICAL ANALYSIS OF HOUSING FINANCE INDUSTRY IN JODHPUR MARKET is the outcome of my Interim Project (Summer Training) at PNB Housing Finance Ltd., Jodhpur, Rajasthan. The completion of any training is not only the result of work of student but includes the precious work, experience, advice, encouragement, guidance & valuable support of associated persons. I take this opportunity to convey my sincere thanks to the management of PNB Housing Finance Ltd., Jodhpur for permitting me to conduct the present studies. "Winners don't do different things but they do things differently" at this juncture, I would like to convey my gratitude & sincere thanks to a winning team of Mr. M. M. Lodha, General Manager (Commercial) PNB Housing Finance Ltd., Jodhpur. I really admire the level of perfection they have achieved in manufacturing tyre products following the international standards. I am deeply indebt to Mr. Ajay Joshi for very cordially providing me with an conductive atmosphere and facilities for completing my industrial training satisfactory which not only enriched my knowledge but also provided me with an opportunity for taking up useful practical work. It gives me the feeling of deep satisfaction while expressing my sincere thanks to Mr. Ajay Joshi, Who Played the most important role in successful completion of my project "Financial Statements Analysis" was

possible only because efforts, care & concern.

of

their

meticulous

Preface
Management is an essential ingredient in every organized endeavor. Effective and efficient coordination of human effort's and materials resources requires sound management. In the turbulent socio-economic environment of today, the job of a manager has become very challenging. Successful management of comple. organizations employing sophisticated technology and skilled personnel can not be possible through intuition or trial and error. A science of management has been developed and a modern manager requires mastery of his science as well as the ability to apply it to the situational need of his organization. There is no single universal technique of management and the basic management principles have to be adapted to the environmental demands. This project report has been designed keeping in view the financial nature of the management of the small scale industries (business). It seeks to provide a brief and concise view of what management is all about and how it can be applied to small scale industries (business). India being a developing economy, it is trying hard to promote this sector by doing effective financial analysis. Entrepreneurial development has come to be recognizing widely as the key to economic developments and human welfare Entrepreneurial and conceptual skills are essential for industrialization. An experience of developed as well as developing countries

clearly shows that it is possible to develop entrepreneurship through plant efforts.

INDEX TOPIC J.K TYRES INDUSTRIES 1)Introduction 2)History 3)Events 4)B.O.D 5)Plants & Office APOLLO TYRES 1)History 2)Achievements 3)B.O.D. 4)Office contact MRF TYRES 1)History & Achievement 2)B.O.D. KEY FINANCIAL RATIOS 1)J.K. Tyres Industries 2)Apollo Tyres 3)M.R.F. Tyres COMPARAIVE RATIO ANALYSIS 1) Working capital Ratio 2)Debt-Equity Ratio 3)Interest Coverage Ratio 4)Fixed Assets Turnover Ratio 5)Inventory turnover Ratio 6)Debtors turnover Ratio 7)Total Assets Turnover ratio 8)Gross Profit Ratio 9)Net Profit Ratio 10) Operating Profit Ratio 11) Return On Capital Employed

CONCLUSION J.K. TYRES INDUSTRIES PVT. LTD.

Excellence comes not from mere words or procedures it comes from an urge to strive and deliver the best. A mind set that says, when it is good enough, improve it. It is away of thinking that comes only from a power with in. - HARI SHANKAR SINGHANIA J.K.Tyers and Industries LTD. Is the flagship company under the umbrella of J.K. organization.

THE ORGANISATION The advent of J.k. organization on the industrial land scape of India almost synchronizes with the beginning of an era of industrial awarness- an endeavor for self reliance and the setting up of a dynamic Indian industry

CORE VALUES

J.K. organization has been a forerunner in the economy and social advancement of India. It always aimed at:1) Creating job opportunities 2) To provide high quality products. 3) To make India self reliant by pioneering the production of number of industrial and consumer products. 4) Adoption of latest technology. 5) Developing its own resources. J.K. organization is an association of industrial and commercial companies and charitable trusts, its member companies, employing nearly 50,000 persons are engaged in the manufacture of a variety of products and in diverse fields of commerce. Trusts are devoted for promoting industrial, technical, medical research, education, Religious values and providing better living and recreational facilities with the spirit of social

conciousness uppermost in mind J.k. organisationis commited to the cause of human advancement. THE FOUNDERS JK organization ownes its name to LATE LALA JUGGILAL SINGHANIA, a dynamic personality with a broad vision. Inspired by the cause of the SWADESHI MOVEMENT of MAHATMA GANDHI and driven by the zeal to set up and Indian enterprise, LALA KAMLAPAT SINGHANIA founded JK organisation in the 19th century ushering in a new industrial era in India.

LALA JUGILAL SINGHANIA

RAGHUPATI SINGHANIA

HARI SHANKAR SINGHANIA

The process of industrialization and diversification was worthly and successfully carried on by LALA KAMLAPATS THREE ILLUSTRIOUS SONS- SIR PADAMPAT, LALA KAILASHPAT AND LALA LAKSHMIPAT, aided in small measures by the LATE GOPAL KRISHNA son of SIR PADAMPAT.

HISTORY AND ACHIVEMENTS Life is strange and success needs hard work. This can be judged through the history & achievement of the company. 1983 :- First in India to manufacture calico prints.
:- JUGGILAL KAMLAPAT COTTON SPINNING AND WEAVING MILLS CO.LTD, KANPUR.

1940:- First in India to produce aluminum virgin metal from Indian bauxite. :-ALUMINIUM CORPORATION OF INDIA LID. JAY KAY NAGAR. 1949: First in India to manufacture engineering files. : JK ENGINEERS FILES, BOMBAY 1959: First in India to set up a continuous process rayon plant. 1960: First to manufacture a hydraulically operated cane crushing mill for khandsari sugar plant and completed 100 ton plants . :-JK IRON AND STEEL CO. LTD, kanpur 1961: First in world to set up a plant for production of hydrosulphite of soda by sodium amalgam process. :-JK CHEMICALS LTD.,BOMBAY 1962: First in India to produce nylon-6 with its own poly- merised raw material. : - JK SYNTHETICS LTD.M, KOTA 1965: First in India to produce sodium sulphoxylate formaldehyde (Rangolite c of formosul ) in India. :- JK CHEMICALS LTD,BOMBAY

1968:- First to manufacture & develop differentially dye- cable nylon. :-JK SYNHETICS LTD.,KOTA 1973:- First in India to license synthetic fibre technology to third party as well as the first to manufacture synthetic fibre tech, engineers and manufactures, dadri. 1976:- First in India to produce steel belted radial tyres for passengers, cars, trucks and buses. :-JK TYRE PLANT, KANKROLI. 1980: First in India to produce white cement through dry process. :- JK WHITE CEMENT,GOTAN 1985: First in India to produce cathonic dyeable plysted fibre. :-JK SYNTHETICS LTD., KOTA. First in India to produce tyre cord based on spin draw technology :-JK SYNTHETICS LTD., KOTA 1989: First in India to produce magnetic tapes with cobalt technology. :- J K MAGNETICS LTD., SURAJPUR. 1991: Banmore tyre plant(BPT) set up with a capacity of 5 lacs tyres per annum. 1992: research and development centre was set up at hasteri 1994: Mercedes benz launched on jk steel radicals. First manufacturer in the world to get ISO9001 1996:Indias first dual contact high traction steel radial- aquasonic launched/ Interoduced steel wheels.

1997: Awarded the national export award for the year 1996-1997.

VIKRANT TYRES(V.T.L.) ACQUIRED. Indias first H-rated tyre launched only tyre manufacturer to get E mark certification. Hasteri became the first research institute in Asia to Get ISO-9002. 1998: First tyre manufacturer in the world to get Q-S-9000. Awarded capaxils export awarded for 1997-1998. 1999: Synergy with v.t.l. in procurement, marketing and completion of state of the art modernization of truck radials. JK tyre ranked 16th largest tyre company in the world. :-ISA- 14000 accredition for environment and safety. 2000:- Jk introduced national go- karting championships. 2001:- received capexil award. Jk industries received fogus L.A.C export award for the year 1999-2000. commendation certificate of cii exim. 2nd national go- karting championship held. First tyre company in India to receive ISO 14000 certification for multilocation operations.

EVENTS

Amity human resource excellence award. JD power award Udhyog rattan award.
P.H.D CHAMBER OF COMMERCE AND INDUSTRY

JK tyre attains super brand status. PRESS RELEASE:- JK INDUSTRIES COMPLETES RESTRUCTURING Press release: JK TYRES PLAN TO hike the capacity of truck radial facality at mysore. Prestigious padma bhushan award to the chairman of JK organization. Press release- JK tyre indias no-1 four wheeler tyre manufacturer J.k tyre presented the rajiv gnadhi national quality award for the year 2001. Asia rub tech. 2002 orgnised by the Indian rubber institute and Indian rubber manufacturer research association in association with JK tyre championship2002/ Jk tyre launches Indias first eco- friendly coloured tyres- unleashes yet another technological revolution.

JK tyre awarded commendation certificate for business excellence by CII-Exim Bank for the year 2001. Jk tyre industries ltd. Received focus LAC export award Launch fo ultima XPS. Team India Jk tyre wins 20012 formula asia championsip . Jks prodigy- Narain put India on the formula I world map. Jk tyre goes karting at le meridian. Jk. Tyre karun chandhok wins the first round of formula asia 2001. J.k tyres sets gear up exports. Jk tyre bags top export award for the year 1999- 2000 from capexil Besides all this JK organization focuses on fuel , energy education, health and human resource development, the main formula of success of a company is to satisfy its employees and its surrounding areas.

JK organization has developed its own resources to meet the daily requirement and helped in saving natural resources to a great extent. 1) Continuous training are provided to employees about energy consumption s and reduction plans. 2) Introduction of VFDs on pumps and compressors. 3) Maximum usage of natural lighning in plants.

(A) FUEL:-

4) Better and best pipe lines to reduce steam loss. 5) Recirculation of water, rain harvesting and reducing usage across processes.

(B) RESEARCH AND DEVELOPMENT:1) HARI SHANKER SINGHANIA elastomer and tyre research institute (hasteri) which is a specialized institute of its own kind in India dedicated to research in tyre materials and tyre mechanics. 2) R/D activities include reduction in tyre weight, new compound and components for improved tyre performance, new tyre asthetics and better product imformity, introduction of energy efficient processes and improvement in population control

(C) WORLD CLASS TECHNOLOGY

1) Providing best products at affordable price. 2) Company has set up its research and development centre at hasteri.

3) Better and imported machinies from developed countries are used. 4) Company has technical collaboration with continental AG.germany- 4th largest tyre company in the world. 5) Hasteri is associated with various academic institution like IITs Akron university, USA, Delf university, Holland for research and development activities.

(D) HUMAN RESOURCE DEVELOPMENT

1)Efforts in creating better work place. 2)More freedom & responsibility is given to employees. 3)Availing opportunities for training and development. 4)Better policies and procedures in favour of employees. 5)Separate departments (H.R.D.) for recruitment, selection and training of employees. 6)Talented managers are appointed in these departments. Mr. N.K. SHARMA who is a experienced & talented person is appointed as the manager of H.R DePArtment at JK tyre plant kankroli.

SOCIAL SERVICE

RSPONSIBILITY

AND

COMMUNITY

With out society a company cannot exist in the competitive world. So to success in this competitive worlkd a company has to fullfil its social responsibility. Now a days strict rules are made by the government that each company (limited only) should prepare socialA/cs and must be audited. JK tyre groups belives that we should contribute to the larger society from wihich we draw our sustenance with this commitment the company undertakes a variety of activities to enrich the quality of life of people

(A) HEALTH CARE

1. jk industries unceasingly serves various sections of society through different health different health programes 2. Providing extensive medical care for people at its location, health camps for check up and specialized care are set up in habitations around the areas where the company is located. 3. at mysore, Karnataka, health care facilities are provided to even no company workers. 4. Founder of pushpawati singhania research institute for lever, renal & digestive diseases(pari), established in new delhi. This institute provide specialized treatment and high quality patient care for in-door & outdoor patients.

(B) HOUSING
1)Setting of residential colonies for employees. 2)providing modern and pleasant ambience with varied amenities including wellequipped club for recreation.

(C) EDUCATION
1). Provides quality education. 2) LAKSHMI PAT SINGHANIA SCHOOL was set up at jay kay gram, kankroli to provide education to the children of j.k employees as well as non employees. This school is known for its academic excellence and for producing multi-talanted indiuiduals.. 3) The company jointely runs a post graduate diploma course in rubber technology & polymer science with mohan lal sukhadia university of udaipur since 1990. 4)Rajasthan chapted of Indian rubber (IRI) , a professional; body for education and training for Indian rubber and allied industries was extabilished by the company and is located at hasteri. 5) the company, in association with IRA, Rajasthan branch, is helping to develop local technical manpower in the state of rajasthan for rubber and allied industry. 6). Padma pat singhania institute of technology was established in udaipur in 2007 which imparts bachelor of engineering courses.

(D) ENVIROMENT
1) Till date, over 5.5 lakhs trees have been planted. 2) Eco-friendly practices such as efficient recycling and effluent treatment systems have been located. 3) Conservation of the scarce water resource through various practices is a major thrust area. 4) Strong emphasis on optimum usage of sunlight and solar energy. Both production and allumination.

(E) SPORTS

JK Insustries organizes numerous sporting events all over India and enthusiastic promoter of motor sports in India . 1) JK tyre national championship in 1997 and JK TYRE NATIONAL KARTING CHAMPIONSHIP in 2000. 2) Co-sponsers as OFFICIAL TYRES for the Ist India- asean car rally, initiated by the prime minister of India, which is passed through nine asean countries, in dec2004

BOARD OF DIRECTORS

HARI SHANKAR SINGHANIA

(CHAIRMAN)

RAGUPATI SINGHANIA
(VICE CHANRMAN AND MAN.DIRECTOR)

ARVIND NAROTTAN LALBHAI BAKUL JAIN I.M VITTALA MARTHY. IAS DR.VINAYSHIL GAUTAM HARI SINGHANIA (MANAGING DIRECTOR) VIKRAMPATI SINGHANIA (DY.MANAGING (WHOLE TIME DIRECTOR )

ARVIND SINGH MEWAR B.C. BOSE (LIC NOMINEE) OM PRAKASH KHAITAN (IDBI BHARAT NOMINEEE) SWAROOP CHAND DIRECTOR

P.K.RUSTAGI (COMPANY SECCRETARY)

PLANTS
KANKROLI, RAJASTHAN BANMORE , MADHYA PRADESH MYSORE PLANT-1.,KARNATAKA MYSORE PLANT-2 ,KARNATAKA

REGISTERED OFFICE

7, COUNCIL HOUSE STREET

KOLKATA-700001

ADMINISTRATIVE OFFICE
3,BAHADURSHAH ZAFAR MARG NEW DELHI-110002

VISITING SITES
www.jktyres.com

APOLLO TYRES PVT.LTD.

PEOPLE DELIVER INNOVATION

INNOVATION

DELIVER

SUCCESS

A few of the differences our people made. HISTORY First tyre company to launch exclusive brand outlets- Apollo tyre world-for trucks. First to segment the market on the basis of load and mileage requirements. First to introduce packaging for car and two wheeler tyres and tubes. First to run a customer loyualty programmes. First to introduce radial tyres for the farm category First tyre company in India to obtain ISO certification ffor all its operations. First to produce h,v and w speed rated tube less tyres. -first to run hiv-aids awareness and prevention clinics for the trucking community. First to support the creation of an emergency medical service in an Indian city. First to execute an overseas acquisition. First to reach a revenue of over us$ 1 billion.

ACHIVEMENTS 1975 : inception

1975 : registered as a company 1977 : first plant commissioned in peramba (cochin,kerela). 1991 : second plant commissioned in limda (Baroda, Gujarat). 1995 : Acquired permier tyres in kalamassery (cochin, kerela.) 1996 : exclusive tubes plant commissioned in ranjangaon ( pune, Maharastra.) 2000 : Exclusive radial capacity established in limda. 2000 : Established Apollo tyres health care clinic for HIV-Aids awareness at Gandhi transport nagar, delhi. 2003 : Expansion of passenger car Radial capacity to 6600 tyres/day.) 2004 : Production of indias first H-speed rated tubeless passenger car radial tyres. 2004 : support in setting up indias first emergency medical service in baroda, Gujarat. 2005 : Apollo tyres Health centre care clinics in udaipur in rajasthan and kanpur in uttar Pradesh. 2006 : Expansion of passenger car range to include 4x4 and all terrain tyres. 2006 : Acqiored Dunlop tyres internation in south Africa and Zimbabwe. 2006 : Opening of Apollo tyres health clinic in Ukkadam, tamil nadu. 2006 : Launch of indias first range of ultrahigh performance V and W-speed rated. 2006 : Launch of Dura tread, treading material and solutions.

2007 : Launch of Regal truck and bus Radial tyres. 2007 : Launch of Dura-tyre, Retreaded tyres from Apollo., 2007 : Launch of the Apollo Tennis Initiative and mission 2018.

BOARD OF DIRECTORS
ONKAR S KANWAR
(CHAIRMAN &MANAGING DIRECTOR )]

K.JACOB THOMAS
(DIRECTOR)

K.JOSE CYRIAC M.R.B PUNJA (DIRECTOR)

NOMINEE(KERELA GOVERNMENT)

NEERAJ KANWAR
(JOINT MANAGING DIRECTOR)

NIMESH.N KAMPANU
(DIRECTOR)

RAAJA KANWAR (DIRECTOR) SURAM SARKAR

(WHOLE TIME DIRECTOR)

SHARDUL.S.SHROFF
(DIRECTOR)

S.NARAYAN (DIRECTOR) T.BALA KRISHNA (NOMINEE (KERELA GOV.) V.S OBEROI

(WHOLE TIME DIRECTOR)

P.N. WAHAL
(COMPANY SECRETARY)

M.J. MENKINSON

(ADDITIONAL DIRECTOR)

REGISTERED OFFICE 6 FLOOR CHERUPUSHAM BUILDING, SHANMUGHAM ROAD, KOCHIN, KERELA-6882031 REGISTERED AND CORPORATE HEAD OFFICE APOLLO TYRES LTD. APOLLO HOUSE, 7, INSTITUTIONAL AREA, SECTOR-32 GURGAON-122001. HARYANA

CONTACT NO. 91-0484-2381902 91-0484-2381903 91-124-6383002 91-124-2383018 FAX NO. 91-0484-2370-351 VISITING SITES www.apollotyres.com E-MAIL ID info@apollotyres.com

MRF

M.R.F. TYRES INDUSTRIES PVT.LTD HISTORY AND ACHIEVEMENTS It is true to say that persons who have plersonality and talent can lead the whole world. Hard work is the key for every success. Only a single person cannot be able to succeed. Lot of hands lies behind is success so one must cooperate with others. 1946 : A young enterprineur K.M. mammen mappillai, opened a small toy ballon manufacturing unit in a shed at Tituvottiyur, Madras(now Chennai). 1946 : The factory was small a variety of products ranging from balloons and latezx cast squueating toys to industrial gloves and contraceptives, were produced. At this time M.R.F. established its office at:334, THAMBU CHETTY STREET MADRAS, TAMIL NADU INDIA. 1952 : MRF ventured into the manufacture of treat rubber. First machine and first mill was installed in the the factory., 1955 : MRF soon became the only Indian owned unit to manufacture the superior extruded non

blooming and cushion backed, treat rubber, enabling it to complete with the M.N.Cs operating in India at that time. 1956 : Quality of product manufactured was of high standard that by the close of 1956. MRF ghad become the market leader with a 50% share of the treat rubber market in India. 1961 : with the success achieved in treat rubber , MRF entered into the manufacture of tyres, MRF establisheda technical collaboration with the Mansfield tyre and rubber company of U.S.A. around that it become a public company. It set up a pilot plant for tyre manufacture at Tiruvottiyur, Madras(now Chennai). 1963 :- On June 12,1963 Indias first Prime minister, Late Pandit Jawahar lal Nehru laid down the foundation stone. For the Rubber research at Tiruvottiyur factory. 1964 : With the commissioning of the main plant in 1964 , MRF also made progress in the export of tyres . An overseas office at BEIRUT(LEBANON) was the amongst Indias very first efforts on tyre exports. This year also marked the birth of now famous MRF MUSCLE MAN. 1967 : MRF became the 1st Indian company to export tyres to U.S.A. . The very birth place of tyre technology. 1973 : MRF scored a major break through by being among the very first in India to manufacture and market nylon tyres, passenger tyres commercially. 1978 : MRF developed Thye MRF superluig -78 , a sturdy tyre of heavy truck tyres. 1979 : MRFS turnover crossed I.N.R one billion.

1980 : MRF entered into a technical collaboration with the B.FGOODRICH TYRE COMPANY of U.S.A. MRF took a major policy decision to be aggressive on the racing circuits. 1983 : MRF began a rapid product development programme for new vehicles entering India. 1984: Sales crossed I.N.R. two billion MRF tyres were the first tyre selected for filament into the maruti Suzuki-800 Indias first small modern car. 1985 : MRF was selected by the national institution of quality assurance for their most prestigious award.Pitted against 20 tyre companies world wide, MRF won 6 quality improvement award instituted by B.F.GOODRICH TYRE company from U.S.A. 1987 : MRF CROSSED THE I.N.R 3 BILLION mark and became no-1 tyre company in India. 1988 : The MRF pace foundation was set up with the internation pace bowler, DENNIS LILEE as its directors. 1989 : MRF WAS AWARDED THE VISVESVARAYA AWARD from the best business house in south India /. The company also entered in to the collaboration with VApocure Australia TO MANUFACTURE POLYURETHANHE PAINT formulatins and with PIRELLI for MUSCFLEX CONVEYOR and elevator belting. 1989 : MRF LAUNCHED THE mRF zigma cc radial synchronizing with the MRF WORLD SERIES cricket tournament for the JAWAHAR LAL NEHRU TROPHY SPONSERED BY THE COMPANY. The chief minister of tamilnadu, Dr. MKARUNANIDHI awarded Mrf the special export award.MRF also opened the MRF TYRE drome.

1990 : MRF brought the 6th WORLD CUP BOXING CHAMPIONSHIP to muimbai the first of its klnd with 39 countries participating. The event was telecasted live on T.V. networks. 1993 : K.M. MAMMEN MAHPPILLAI was awarded the padma shri award of national recognition for his contribution to industry. MRF was selected as one of the indias most admired marketing companies by the readers of the A &N magazine. 1995 : The companys turnover crossed I.N.R 15 BILLION. Mrf WAS choosen for fitment on the DAEWOO CHELO. MRF was voted by the far eastern economic review as one of the 10 leading Indian companies. 1996 : In the golden jubilee year. MRFs turnover crossed the I.N.R 20 billion milestone .A special factory dedicated entirely to manufacute of Radials was started at pondicherry . MRF tyres were choosen for fitment on the FoRD escort, Opel Astra, and FIAT UNO. Further proof of its superior quality. 1999: MRF was declared as the most ethical company by business world magazine in its survey. 2000 : MRF launched the smile campaign on Indian roads. 2004 : MRFs turnover crossed I.N.R 30 billion marks .

BOARD OF DIRECTORS

K.M MAMMEN- CHAIRMAN & MANAGING DIRECTOR ARUN MAMMEN- MANAGING DIRECTOR K.M.PHILLIP- WHOLE TIME DIRECTOR ASHOK JACOB- DIRECTOR S. NANDA GOPAL- DIRECTOR S. SRIDHAR-DIRECTOR N.KUMAR-DIRECTOR RANJIT I. JESUDASEN-DIRECTOR RAVI MANNATH- COMPANY SECREATARY

REGISTERED OFFICE
124,GREAM ROAD CHENNAI, TAMILNADU 600006 91-044-28295087 VISITING SITES www.mrftyre.com

CONTACT NO.

E-MAIL ID mrfshares@mrfmail.com

J.K.TYRES INDUSTRIES PVT.LTD.

KEY FIANANCIAL RATIO--------------IN RS.CR.-------Profitability ratio Adjusted net profit Margin(%) FINANCIAL RATIOS Cash profit margin(%) 2.81 Gross profit margin(%) 2.96 Opert. Profit marging 5.63 Profit before interest And tax margin(%) 3.23 Return on capital Employed(%) 7.54 Return on net worth 3.10 SPREAD RATIOS: Interest expended/ total fund(%) Interest income/total fund(%) Net interest income/ Total fund(%)

0.87 MAR 2003 3.81 3.81

1.09 MAR 2004 4.02 4.86

0.54 MAR 2005 3.29 3.48 7.30 4.56 8.42 2.83

0.37 MAR 2006 3.04 2.48 5.31 2.64 5.34 2.21 MAR 2007

10.61 9.89 7.67 7.69 1.76 6.96 9.31 3.27

Net profit/total funds(%) Non interest income/ Total fund(%) Operating expense/ Total funds(%) Profit before provisions/ Total funds(%) MANAGEMENT EFFIC-IENCY RATIOS Debt turnover ratio 5.72 6.64

5.35

5.19

5.54

Fixed assets turnover Ratio 1.06 1.26 1.57 1.59 1.72 Inventory turnover ratio8.51 10.13 11.49 11.29 9.64 Loans turnover ratio Total assets turnover Ratio 1.00 1.16 1.35 1.49 1.89 PROFIT AND LOSS ACCOUNT RATIOS: Intrest expended /

interest earned(%) Operating expense/ Total income (%) Other income / Total income(%)

LIQUIDITY AND SOL-VENCY RATIOS: current ratio 0.83 Debt equity ratio 1.04 Long term debt equity ratio 0.66 BALANCESHEET RATIOS: Advances/loan funds(%) DEBT COVERAGE RATIOS Interst cover 1.13 DEPOSIT AND CREDIT GROWTH RATIOS: Cash deposit ratio(%) Credit deposit ratio(%) Investment deposit ratio(%) LEVERAGE RATIOS: Interst expended / Capital employed(%)

0.90 1.26 0.84

0.92 1.84 0.33

0.88 1.96 1.41

0.84 2.28 1.40

1.39

1.19

0.93

1.21

-------------------------------------------------------------------------------------------------------------------------------------------------------------FINANCIAL RATIOS ---------------MAR 2002 MAR 2003 MAR 2004 MAR 2005 MAR 2006

APOLLO TYRES INDUSTRIES PVT.LTD..

KEY FIANANCIAL RATIO--------------IN RS.CR.-------Profitability ratio Adjusted net profit Margin(%) 5.93 3.01 Cash profit margin(%) 7.57 4.97 Gross profit margin(%) 5.97 6.88 Opert. Profit marging 11.68 8.86 3.04 4.93 9.87 7.82 2.55 4.68 6.44 7.15 2.60 5.03 5.33 7.89

Profit before interest And tax margin(%) 10.03 5.93 5.01 5.47 6.89 Return on capital Employed(%) 32.18 16.30 12.65 13.14 Return on net worth 32.89 14.30 11.48 12.99 14.22 SPREAD RATIOS: Interest expended total fund(%) Interest income/total fund(%) Net interest income/ Total fund(%) -

Net profit/total funds(%) Non interest income/ Total fund(%) Operating expense/ Total funds(%) Profit before provisions/ Total funds(%) MANAGEMENT EFFIC-

-IENCY RATIOS Debtors turnover ratio16.66 19.96 Fixed assets turnover Ratio 2.94 2.70 Inventory turnover ratio11.30 8.66 Loans turnover ratio Total assets turnover Ratio 3.19 Total income/capital Employed(%) PROFIT AND LOSS ACCOUNT RATIOS: Intrest expended / interest earned(%) Operating expense/ Total income (%) Other income / Total income(%) 23.76 19.19 18.10 2.74 9.66 2.74 2.51 8.96 2.52 2.45 8.01 2.40 -

2.54

LIQUIDITY AND SOL-VENCY RATIOS: current ratio 1.01 Debt equity ratio 0.76 Long term debt equity

1.05 0.72

0.98 0.84

0.98 1.07

0.99 0.86

ratio

0.39

0.38

0.42

0.47

0.36

BALANCESHEET RATIOS: Advances/loan funds(%) DEBT COVERAGE RATIOS Interst cover 5.55 DEPOSIT AND CREDIT GROWTH RATIOS: Cash deposit ratio(%) Credit deposit ratio(%) Investment deposit ratio(%) LEVERAGE RATIOS: Interst expended / Capital employed(%)

4.30

2.76

2.84

3.48

-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

MRF TYRES INDUSTRIES PVT.LTD...

KEY FIANANCIAL RATIO--------------IN RS.CR.------Profitability ratio FINANCIAL RATIOS MAR 2003 MAR 2004 MAR 2005 MAR 2006 MAR 2007

Adjusted net profit Margin(%) 1.16 Cash profit margin(%) 4.61 Gross profit margin(%) 4.91 Opert. Profit marging 6.08 Profit before interest And tax margin(%) 2.64 Return on capital Employed(%) Return on net worth SPREAD RATIOS: Interest expended/ total fund(%) Interest income/total fund(%) Net interest income/

0.57 7.84 9.39 11.44 7.18

2.68 6.29 7.33 8.92 5.30

1.84 5.04 5.94 6.88 3.68 8.95 7.70

0.75 3.96 4.26 5.44 2.23 5.57 3.47

15.28 12.17 13.92 10.47

Total fund(%)

Net profit/total funds(%) Non interest income/ Total fund(%) Operating expense/ Total funds(%) Profit before provisions/ Total funds(%) MANAGEMENT EFFIC-IENCY RATIOS

2.50

Debtors turnover ratio6.37 Fixed assets turnover Ratio 1.91 Inventory turnover ratio6.21 7.54 Loans turnover ratio Total assets turnover Ratio 2.13 Total income/capital Employed(%) -

6.74 2.04 6.68 -

7.53 2.21 6.76 2.30

7.99 2.26 6.64 2.43

PROFIT AND LOSS ACCOUNT RATIOS:

Intrest expended / interest earned(%) Operating expense/ Total income (%) Other income / Total income(%)

LIQUIDITY AND SOL-VENCY RATIOS: current ratio 1.89 Debt equity ratio 0.83 Long term debt equity ratio 0.55 BALANCESHEET RATIOS: Advances/loan funds(%) DEBT COVERAGE RATIOS Interst cover 3.50 DEPOSIT AND CREDIT GROWTH RATIOS: Cash deposit ratio(%) Credit deposit ratio(%) Investment deposit ratio(%) LEVERAGE RATIOS: Interst expended / Capital employed(%)

1.90 0.70 0.46

1`83 0.72 0.45

1.68 0.86 0.51

1.64 0.91 0.56

3.34

3.91

1.89

2.27

-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

COMPARATIVE RATIO ANALYSIS OF OF MAJOR TYRE MANUFACTURING COMPANIES

MAJOR TYRE MANUFACTURING COMPANIES: 1). J.K TYRES INDUSTRIES PVT. LTD. 2). APOLLO TYRE INDUSTRIES PVT. LTD. 3). MRF TYRES PVT.LTD.

RATIO-1 CURRENT RATIO OR WORKING CAPITAL RATIO: This ratio is used to assess the short term Financial position of the enterprise. This is the indicator of the enterprise ability to meet its short-term obligations. The relation- -ship of current assets to current liabilities is known as current ratio.

CURRENT RATIO= CURRNET ASSETS/CURRENT LIABLITIES It generally accepted that current assets should be 2 times the The currents liabilities, then only will realization from current assets be sufficient to pay the current liabilities on time and enable the firm to meet other day to day expenses. OBJECTIVES: The objectives of this ratio are as under: 1) indicates the firm to meet its short term liability. A high ratio will result in idleness of funds and therefore, is not a good sign. ANALYSIS AND INTERPRETATION] A much higher ratio indicates poor investment policies of the company & poor inventory control while a low ratio indicates lack of liquidity & shortage of working capital. In case of jk tyre, this ratio is increased in 2003 & decresed till 2006. A better sign for the company investment policies & investment decisions of management. In case of mrf tyre, this ratio is more or less constant, a better sign. In case of appolo tyre, this ratio decreased in 2004-2005 and and latter Increased not a good sign. J.K.Tyres is better TABLE-1

YEARS 2003 2004 2005 COMPANY J.KTYRES 0.83 0.90 1.05 1.90 0.92 0.98 1.83 0.88 0.98 1.68 0.84 0.99 1.64 2006 2007

APOLLO TYRES 1.01 MRF TYRES 1.89

Analysis and interpretation:A much higher ratio indicates poor investment policies of the company & poor inventory control while a low ratio indicates lack of liquidity & shortage of working capital. In case of J.K.Tyres,this ratio is increased in 2003 & decresed till 2006.Better sign for the company investment policies & investment decision of management. In case of Apollo tyres,the ratio decresed in 2004-05 and later increased.Not a good sign. In case of MRF Tyres,this ratio is more or less constant,a better sign.

2 1.8 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0

J.K.TYRE APOLLO MRF

2003

2004

2005

2006

2007

higher ratio indicates poor investment and inventory control. Indicates lack of liquidity and shortage. Working capital ratio= CURRENT ASSETS/CURRENT LIABILITY JK tyres is better. If we analyse graph working capital ratio is low as compared with others. RATIO-2 DEBT EQUITY RATIO: The debt-equity ratio is worked out to ascertain soundness of the long-tern financial policies of the firm. This ratio experess a relationship between debt(external equities) and the equity(internal equities). Debt means long term loans and equity means shareholders fund. This ratio is calculated as under:-

Debt equity ratio= debt(long term loans)/equity(share holders fund). A higher ratio indicates a risky financial position while a lower ratio indicates safer financial position. OBJECTIVES: The objectives of this ratio are as under:1) It derives the idea of the amount of capital supplied to the concern by the proprietors. 2) To assess the soundness of long term financial position. 3) Indicates the extent to which the firm depends upon outsiders.

Table-2 years 2003 2004 2005 2006 2007 1.26 0.72 0.70 1.84 0.84 0.72 1.96 1.07 0.86 2.28 0.86 0.91 company J.k tyres industries 1.04 Apollo tyres MRF tyres 0.76 0.83

ANALYSIS AND INTERPRETATION In case of j.k tyre, debt-equity ratio implies that the debt position is more than equity. The lower the debt equity ratio. The higher the degree of protection felt by the credictors. In this debt equity ratio of company is increasing which is not a good sign.

In case of MRF tyre, debt-equity ratio is more or less constant which is a good sign.

Graph-2 Debt equity ratio

2.5 2 1.5 1 0.5 0 J.K.TYRES APOLLO MRF

2003

2004

2005

2006

2007

Relationship between debt(external equities) and equity(internal equities). Ascertain soundness of long term financial policies. Higher ratio indicates a risky financial position. Debt-equity ratio =debt/equity. MRF is better as its debt-equity ratio is low. In case of Apollo tyre, debt-equity ratio is more or less constant which is also a good sign. MRF is better than others. Ratio-3 Interest coverage ratio:-

When a business borrow money, the lender is interested in finding out whether the business. Would earn sufficient profits to pay periodically the interest charges. This ratio is determined by dividing profit before interest and taxes. Thus two variables involved in this ratio are fixed interest charges and net profit. Interest coverage ratio= net profit before interest and tax/interest on fixed loans or debentures. OBJECTIVES: The objectives of this ratio are as under:1) It measures the margin of safety for the lenders. 2) Determines the over all efficiency of the business.

TABLE-3 company J.k tyres industries 1.13 Apollo tyres MRF tyres 5.55 3.50 years 2003 2004 1.39 4.30 3.34 2005 1.19 2.76 3.91 2006 0.93 2.84 3.91 2007 1.21 3.48 2.27

Graph-3 Interest coverage ratio:-

6 5 4 3 2 1 0 2003 2004 2005 2006 2007 J.K.TYRES APOLLO MRF

Points whether business would earn sufficient profits or not. Interest coverage ratio= N.P before interest and tax/int. on fixed loans. Apollo is better as its interest coverage ratio is more.

Analysis and interpretation:The greater the interest coverage ratio, the higher the ability of the firm to pay its interest expense. Thus in case of J.k tyres, it is more or less constant, declined in year2004-05. But increased in 2006. Better sign for the company. In case of M.R.F tyres, it is more or less constant but increased in 2006. A better sign for the company. In case of Apollo tyre, it is decresed till 2005 but increased in 2006.A better sign for the company to pay its interest expenses.

Apollo tyres is better company. Ratio-4 FIXED ASSETS TURNOVER RATIO:This ratio indicates the extent to which the investment in fixed asses contribute towards sales. If compared with previous years, it indicates whether the investment in fixed assets is judicious or not. This can be calculated as under. Fixed assets turnover ratio= net sales/net fixed assets Net fixed assets= fixed assets-depriciation OBJECTIVES:The objectives are as follows:1)inciates how efficiently fixed assets are used. If there is increase indicates improvement in the utilization of fixed assets. years company J.k tyres industries Apollo tyres MRF tyres 2003 1.06 2.94 1.91 2004 1.26 2.74 2.04 2005 1.57 2.51 2.21 2006 1.59 2.45 2.26 2007 1.72 2.70 2.40

Analysis and interpretation: Fixed assets turnover ratio indicates the efficient utilization fo fixed assets. It indicates to what extent fixed assets are contributing in generation of sales in case of J.K. tyres, fixed assets. But not increasing in increased pattern.

Fixed constant rate. This indicates efficient management of fixed asets. In case of appolo tyre, fixed assets are decreased in year 2002 to 2005. but company has made better performance in utilization of fixed assets in year 2006 and can be due toGraph-4 Fixed assets turnover ratio:3 2.5 2 1.5 1 0.5 0 2003 2004 2005 2006 2007 J.K.TYRES APOLLO MRF

indicates the extend to which investment in fixed assets contributes towards sales. Fixed assets turnover ratio=Net sales/Net assets MRF is better as its fixed assets turnover is constantly increasing. 1) 2) Better policies regarding fixed assets. Better investment decision in fixed assets. This through the abover figures MRF tyre is better utilizing its fixed assets in a better way.

Ratio-5 INVENTORY TURNOVER RATIO OR STOCK TURNOVER RATIO

This ratio established relationship between the cost of goods sold during a given period and the average amount of inventory carried during that period. This is calculated as under:Stock turnover ratio= cost of goods/ Average stock or inventory. Cost of goods sold is calculated as : Cost of goods sold= opening stock +purchases+ direct expenses- closing stock. OR Cost of goods sold= sales- Gross profit Higher the ratio, better it is. The ratio shows better performance if it increases, since it means that the investment in stocks is leading to higher sales. OBJECTIVES:The significance and objectives of this ratio are as under:1) Indicates whether stock is efficiently used or not. 2) Enables the business to earn a reasonable margin of profits.

years company J.k tyres industries Apollo tyres MRF tyres

2003

2004

2005

2006

2007

8.51 10.13 11.57 11.29 9.64 11.30 9.66 8.96 8.01 8.66 6.21 6.68 6.67 6.64 7.57

Analysis and interpretation

Inventory turn over ratio indicates how quickly inventory is converted into sales. The higher the inventory turn over ratio, the better it is for the organization. In case of J.k tyre inventory turn over ratio is increased in year 2002 to 2005 but this ratio is decreased in 2006. This ratio is more or less constant and is good enough. In case of MRF tyre, inventory turn over ratio is more or less constant but is increasing. This indicates that the company is performing well. In case of appolo tyre, inventory turn over ratio is in the pattern of decreasing and then in increased pattern. Till 2005 it show decreasing pattern but 2006 it is increasing. This is mainly due to1). Efficient utilization of stock. 2). J.k tyres is better as compared with others. Graph-5 Inventory turnover ratio:-

12 10 8 6 4 2 0 2003 2004 2005 2006 2007 J.K.TYRES APOLLO MRF

 Establishes relationship between costs of goods sold and average amount of inventory carried during that perid. Higher the ratio better leads that investment in stock to higher sales. Stock turnover ratio= cost of goods sold/ average inventory. J.k tyres is better as it has high inventory turn over ratio. Ratio-6 Debtors turnover ratio:This ratio establishes the relationship between net credit sales and average debtors of the year. Average debtor are calculated by dividing the sum of debtors in the beginning and at the end by 2. This ratio is calculated as:Debtors turnover ratio= Net credit sales/Average accounts If the ratio is high, it indicates economy and efficiency in collection of amounts due. While calculation of debtors turnover, doubtful debts are not deducted from total debtors. When opening and closing receivables and credit sales are not given, the ratio is calculated as:Debtors turnover ratio = total sales/ accounts receivables. OBJECTIVES: the objectives of this ratio are as under 1) It indicates the efficiency of the staff entrusted with collection of amounts which are due from debtors.

company J.k tyres industries 5.72 5.35 5.19 5.54 6.64 Apollo tyres 16.66 23.76 19.19 18.10 19.96 MRF tyres 6.37 6.74 7.53 7.99 8.45

years

2003

2004

2005

2006

2007

25 20 15 10 5 0 2003

J.K.TYRES APOLLO MRF

2004

2005

2006

2007

Establishes relationship between net credit sales and average debtors. It ratio is high indicates economy and efficiency. Debtors turnover ratio = net credit sales/average accounts. Both the three companies have increasing debtors turnover ratio. But MRF is better. In case of MRF tyres, debtors turnover ratio is increasing it is a better sign for the company. In case of appolo tyres, debtors turn over ratio is increasing in year 2003 &2006 but declined during 2004-05. this is more or less constant. This indicates that the company failed to collection of amounts due

from debtors. Increase means company has MRF is better company. RATIO:-7 Total assets turnover ratio:It high lights the amount of assets that the firm used to generate its total sales. The ability to generate a large volume of sales on a small assets base is an important part of the firms profit picture, idle or improperly used assets increase a firms need for costly financing and the expenses for maintenance and upkeep. By achieving a high assets turnover, a firm reduces cost and increases the eventual profit of its owner. Total assets turnover ratio = Total sales/ Average assets. TABLE-7 years company J.k tyres industries Apollo tyres MRF tyres 2003 1.00 3.19 2.00 2004 1.16 2.74 2.30 2005 1.35 2.52 2.43 2006 1.49 2.40 2.50 2007 1.89 2.54 2.81

Analysis and interpretation In case of J.k tyres, total assets turn over ratio is increasing thata is a better sign . this increases results

in profit of company. In case of MRF tyres, this ratio is in increasing. In case of appolo tyres this ratio is more or less constant decreased till 2005. but increased in 2006. J.K tyres is better. Graph -7 Total assets turnover ratio

3.5 3 2.5 2 1.5 1 0.5 0 2003 2004 2005 2006 2007 J.K.TYRES APOLLO MRF

High assets turnover reduces cost and increases profit. Total assets turnover ratio =total sales/ average assets. J.K is better as its total assets turnover is increasing continuously. Ratio-8 GROSS PROFIT RATIO:-

This ratio establishes relationship of gross profit on sales to net sales of a firm. Its formula is:Gross profit ratio = gross profit/net sales *100 Net sales means gross sales (both cash and credit ) minus sales ruturns. And fluctuations in this gross profit is the results of a change either in SALES or the cost of goods sold or both. Thus this ratio shows the average margin on goods sold. Objectives: The objectives of gross profit are as under: 1) It helps to determine the selling price. 2) To determine, how much selling price per unit may decline without resulting in losses of operation of the firms. 3) Gross profit ratio, when compared to earlier years, it significantly different is a reason for the management to investigate the change. years company J.k tyres industries Apollo tyres MRF tyres 2003 3.80 9.87 9.39 2004 4.86 6.44 7.33 2005 3.48 5.33 5.94 2006 2.48 5.97 4.26 2007 2.96 6.88 4.91

Analysis and interpretation G.p ratio is a reliable guide to the adequacy of selling prices and efficiency of trading activities higher the G.p ratio declined in the year 2004 and 2005 but gradually increased in 2006 decrease may be mainly due to

1) Price of material has gone up and wages increased but selling price remained constant. 2) decrease in selling price. 3) Closing stock under valued. 4) Miss appropriation of goods and wastages. A higher gross profit is mainly due to revese reasons in case of MRF tyres, G.P. ratio decreased during till 2005 but increased in 2006. this is mainly due to frame of new policies and better management efficiency. In case of appolo tyres, this ratio decreased till 2005 but J.K. increased later. J.K tyres is better. Graph-8 Gross profit ratio:
10 8 6 4 2 0 2003 2004 2005 2006 2007 J.K.TYRES APOLLO MRF

Net profit ratio = net profit /net sales *100 Apollo and J.k tyres gross profit ratio is good as it is increasing in 2005 and 2006 continuously.

Ratio-9 NET PROFIT RATIO:A ratio of net profit to sales is called net profit ratio. net profit is derived by deducting administrative & marketing expenses, finance charges and making adjustments of non operating expenses and income from the gross profit. This ratioreveals the rate of net profit to each sale. Net profit ratio = net profit/ net sales *100 Some time N.P ratio is calculated in two ways. N.P is taken either as profit before tax and profit after tax. Net profit ratio = profit before tax /net sales *100 Net profit ratio = profit after tax/ net sales *100 Objectivers: The objectives of this ratio are as : 1) determine over all efficiency of the business. 2) Higher the net profit, better the business is . 3) Determines operational efficiency of the business. Table-9 company J.k tyres industries 0.87 Apollo tyres 5.93 MRF tyres 3.57 years 2003 2004 1.09 3.04 2.68 2005 0.54 2.55 1.84 2006 0.37 2.60 0.75 2007 0.41 3.01 1.16

Analysis and interpretation Net profit margin in case of J.K tyre is increased in 2003 but decreased in 2004-05 but is increase in 2006. this is more

Or less constant. Decrease is mainly due to more other charges such as administrative, marketing and other operating and operating expenses. Increase is mainly due to reduction in tax liability and other expenses. Graph-9 Net profit ratio:-

6 5 4 3 2 1 0 2003 2004 2005 2006 2007 J.K.TYRES APOLLO MRF

Net profit ratio= net profit /net sales *100 Apollo is good as its net profit is increasing in 2004-05 and in 2006 also. In case of Apollo tyre is net profit is decreased in 2004 but increased later. It is better sign for the company. In case of MRF tyre is net profit is decreased in 2005 but increased in 2006. this indicates that company made efforts to reduce its other expenses. Apollo tyre is better then others.

Ratio-10 Operating profit ratio:Operating profit ratio establishes relationship between operating profit and net sales. Operating profit is the net profit arising from the normal operations and activities of an enterprise. Operating profit is given by net profit before adjustments of non-operating income and expenditure and finance charge. This ratio can be calculated by the following formula:Operating profit ratio:- operating profit /net sales *100 Operating profit ratio : net profit + non operating expenses non operating income. Objectives: the objectives of this ratio are as under:1) Indicator of operational efficiencies of management as against the net profit which reveals only overall efficiency 2) To measure the profitability and soundness of the business. 3) Higher the ratio, the better is the profitability of business.

company J.k tyres industries 10.61 9.89 Apollo tyres 11.68 7.82 MRF tyres 11.44 8.92

years

2003

2004

2005 7.30 7.15 6.88

2006 5.31 7.89 5.44

2007 5.63 8.86 6.08

Analysis and interpretation This ratio is indicator of operational efficiency of management. In case of J.K tyres, operating profit ratio is decreasing till 2005, but increased during 2006. this increase may be better. Formulation of policies and reduction on non operating expenses. In case of MRF tyres it is more or less constant and decreased till 2005 but increased in 2006. In case of appolo tyres operating profit ratio decreased till 2006 & but increased later. J.k tyres is better. GRAPH-10 OPERATING PROFIT RATIO-

12 10 8 6 4 2 0 2003 2004 2005 2006 2007 J.K.TYRES APOLLO MRF

Establishes relationship between operating profit and net sales. N.P arising from normal operations of business. Operating profit ratio = operating profit /net sales*100 Apollo is good. Ratio-11 Return on capital employed (R.O.I) The net result of operation of business is profit or loss. The sourses used in business to attain its consist of both proprietors fund & loans. The over all performances can be judged by working out a ratio between profit earned & capital employed. This ratio can be calculated as:Return on capital employed = profit before interse, tax and dividend / capital employed * 100 Capital employed can be calculated by any of the methods:Total of:- 1) Share capital (both preference and equity ) 2) Reserves and

3)

Long term loans.

Less:- 1) fictitious assets (like preliminary expenses) and 1) Non operating assets like investments. OR Total of :- 1) fixed assets less depreciation and 2)Working capital that is C.A-C.L objectives : the objectives of this ratio are as under :1) determines overall efficiency and performance of the business. 2) Determines operational efficiency of the business and performance of each department. Table-11 years 2003 2004 2005 2006 2007

company J.k tyres industries 7.69 9.31 8.42 5.34 7.54 Apollo tyres 15.28 12.17 8.95 5.57 7.40 MRF tyres 32.18 16.30 12.65 13.14 17.56 Analysis and interpretation In case of J.k tyres, this ratio is decreasing till 2006. but later increased. This is mainly due to better utilization of available resources and managerial efficiency of the company. It is a better sign. In case of MRF tyres ther is a constant incrase and decrease. Till 2006 it is decreased but incrased in 2007. in case of appolo tyres it is same. Appolo tyre is better as its R.O.I is higher as compared to other companies. Graph-11

Returns on capital employed:35 30 25 20 15 10 5 0 2003 2004 2005 2006 2007 J.K.TYRES APOLLO MRF

and

Net result of every business is profit or less. Returns on capital employed = profit before int, tax dividend /capital employed *100 MRF is better.

Conclusion: The training period was very amazing and knowledgeable for me. This was the period which will be memorable for me in my whole life. This period was just like the period when dry desert become green, like that I gained knowledge that made my dry mind full of knowledge. After going through each and every data I came to an come to an conclusion that J.K tyre industries pvt ltd. Is the best company in India when compared with other companies.]

I am very thankful to managerial persons and the whole staff of J.k tyre for helping and supporting me during the traing period.

PROFIT AND LOSS ACCOUNT / INCOME STATEMENT YEAR ENDED 30 SEPTMBER OF J.K TYRES COMPANY

PARTICULAR

AMOUNT 2001 1342. 77 4.59 1347. 36 2002 2315. 29 43.79 2359. 08 2003 2077. 34 37.37 2114. 71 2004 2257.8 7 -72.40 2185.4 7 2005 2079.0 8 16.44 2117.8 4 2006 2626. 82 92.26 2719. 98 2007 2826. 66 93.13 2919. 79

1.Sales & Other income 2. (in.) / De. in Stock Total 3. Total Expenditure (f) Material & Manf. (g) Employees (h) Freight & Trans. (i) Excise Duty (j) Other Exp. Total 4. Operating Profit 5. Interest 6. Profit Before Dep. 7. Depreciatio n 8. Profit before Tax 9. Profit After Tax

751.1 3 73.31 40.36 240.5 6 35.87 1201. 23 146.1 3 96.50 49.63 33.04

1315. 71 143.4 2 71.25 451.2 9 133.4 4 2115. 11 243.9 7 155.9 8 88.29 68.38

1221. 61 125.8 6 66.84 345.1 9 158.3 3 1917. 83 196.8 8 98.70 98.18 59.13

1347.7 7 138.84 73.96 317.63 151.26 2029.4 6 156.01 78.19 77.82 61.34

1611.3 0 142.66 83.24 149.10 1986.3 0 131.54 64.45 67.09 63.65

2150. 32 155.7 0 88.70 343.4 8 155.3 8 2893. 58 168.8 8 76.15 92.73 70.93

2202. 54 176.7 2 92.00 379.5 5 183.3 0 3034. 11 265.2 3 89.04 176.1 9 75.44

16.59 16.59

19.91 20.10

39.05 22.09

16.48 12.19

3.44 16.76

21.80 17.05

100.7 5 66.73

BALANCE SHEET FOR THE YEAR ENDING30 SEP.

PARTICULAR 2001 2002 2003 AMOUNT 2004 2005 2006 2007

Sources Funds

Of
37.46 875.4 5 912.9 1 719.1 8 130.8 6 850.0 4 1762. 95 1809. 81 507.5 1 1302. 30 11.63 1313. 93 252.6 3 716.7 6 545.1 9 171.5 7 1762. 95 37.46 856.53 37.46 818.7 6 856.2 2 656.5 1 94.16 750.6 7 1618. 36 1884. 26 677.1 5 1207. 11 16.43 1223. 54 252.2 6 776.3 0 649.1 6 127.1 4 1618. 36 37.46 745.1 6 782.6 2 671.2 5 159.2 2 830.5 2 1613. 06 1938. 77 764.7 4 1173. 97 61.63 1235. 64 250.0 3 812.5 1 701.0 1 111.4 5 1613. 06 30.79 560.9 3 591.7 2 729.7 7 219.1 0 943.8 7 1535. 59 2084. 22 860.0 3 1224. 19 22.51 1246. 70 61.46 1013. 52 796.8 6 216.6 6 1535. 59 30.79 503.1 3 533.9 2 686.8 2 228.1 3 914.9 5 1554. 19 2156. 07 957.2 7 1198. 80 20.34 1219. 14 62.60 1100. 18 835.9 5 264.2 3 1554. 19

1. Share Holders Funds 34.54 (a) Capital 573.0 (b) Reserves & 7 Surplus Total 2- Loans (a) Secured Loans (b) Unsecured Loans Total GRAND TOTAL Application of Funds 1- Fixed Assets Gross Block Less :Depreciation 2- Net Block 3- Capital Work -in-progress Total (2+3) 4- Investments 5- Current Assets, Loans and Advances Less:- Current Liabilities and Provisions 6- Net Current Assets GRAND TOTAL 607.6 1 638.1 9 91.62 729.8 1 1337. 42 1118. 80 433.5 5 685.2 5 7.80 693.0 5 498.2 7 539.4 1 400.8 3 138.5 8 1337. 42

893.99 738.19 99.87 838.06 1739.2 3 1855.6 3 590.80 1264.8 3 7.02 1271.8 5 252.02 786.36

585.41 200.95 1739.2 3

APPENDIX

BIBLIOGRAPHY:www.j.k.tyres.com www.apollotyres.com www.mrftyres.com www.google.co.in

APPENDIX