fundamental analysis on engineering sector

FUNDAMENTAL ANALYSIS OF AN ENGINEERING SECTOR

INDEX

SR.NO. PARTICULARS PAGE NO.

1. INTRODUCTION TO SGS&SL 2

2. INTRODUCTION OF ECONOMY 5

3. INRODUCTION OF AN ENGINEERING INDUSTRY 13

4. INTRODUCTON OF THE COMPANIES 24

5 FUNDAMENTAL ANALYSIS 42

RATIO ANALYSIS 44

COMPARISION OF RATIO ANALYSIS 94

TREND ANALYSIS 106

VALUATION OF SECURITIES 119

6. LIMITATION OF THE PROJECT 125

7. CONCLUSION AND SUGGESTIONS 126

8. BIBLIOGRAPHY

9. ANNEXURE

B.R.C.M. COLLEGE OF BUSINESS ADMINISTRATION

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INTRODUCTION ABOUT SGSSL

The South Gujarat Shares and Share brokers Ltd. (SGSSL) was started

with authorized share capital of Rs. 3 crores and it’s paid up capital 1.27 crores

under the company Act 1956. In 1992, The Company started its activities as

association of person as sub broker giving service for buying and selling of

securities to investors in Surat.

Mr. Anil Choksy, Mr. Ashok Maheta, Mr. Jagdish Patel, Mr.Paresh jarivala

Who took initiative to forming a limited company, So as become member of NSE

India .In this way SGSSL was registered under company Act on the 5 th January

1995, and conducted it’s trading business as member of National Stock

Exchange.

31st march 1995 which was first financial year completed by the company

after its registration & in this year the company suffered a loss of Rs.80000 due to

heavy expenses like assets purchase, maintenance, establishment of building,

furniture etc. The company had also faced loss in next financial year (1995) of

RS.118000 because of prevailing poor market condition.

During the year ended 31st march, 1997 the company has turned the table.

On the total income of Rs. 4,5,80,000, the company made a net profit of

Rs.3,70,000 and after adjusting the losses of Rs. 1,98,000, the Net Profit shown

to the Balance Sheet was Rs. 1,78,000.

On the 27th February 1996, the company obtained SEBI registration

broker. Originally the operation was started at Baroda because at that time

National Stock Exchange not providing connectivity in Surat. When connectivity

was started, it shifted in Surat at 23rd July 1996 at Belgium Chambers. At Belgium

Chambers the company has huge space for smooth operation approximately

2700sq.ft.

In the next year 1998 the company has taken approval from National

Security Depository Ltd. (NSDL) to work as Depository Participant (DP). In the

beginning only 8 scrip were available which is only for FII (Foreign Institutional

Investors) and Mutual Funds. Then after trading of equity on NSE’s scrip were

started. There are more than 12,500 holders which having demated a/c in

SGSSL. The company is second largest in demate a/c in Surat city.


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In present condition company try to register its sub-broker in SEBI. But

now in present, company has 35 registered sub-brokers and other members.

Company has a Computer-to-Computer Link (CTCL) network, which are

connected with LAN and WAN. In Surat City Company has given many register

sub-broker CTCL. Company also provides its services outside in Surat like,

Navsari, Bilimora and Hazira. In company there are 28 people working. Company

has also connect with 5 servers in this server one server connect with NSE CTCL

and second with disaster management. In NSDL also there is one main server.

The company provide 3 different rooms for online trading to its clients and

sub-broker with Satellite dish, Modem and Iqara cable. The trading business of

the company is rapidly expanding and its daily trading volumes have now crossed

Rs.4 crores. The company expects the trading volume will increase in future.

Mr. Anil Choksy (Chairman & MD) of the company leads the operation of

the company. He along with other Whole-time Directors maintains a close hand

on the operation. The company has its own internal trading and settlement

regulation, which are in conformity with the NSE and SEBI regulation. These

regulations ensure that the activities of the company are managed on the Co-

operative basis and in the high interest of the investors and the shareholders of

the company.

1.2 Profile of Company

1. Name of the company

“South Gujarat Shares and Share brokers Limited”

2. Registered Office

3rd Floor, Belgium Square,

Opp.Linear bus stop,

Ring Road,

Surat-395 003.

3. Boards of Directors

Mr.Anil J. Choksy (Chairman and MD)

Mr.Bhadresh G. Kapadia (Whole-time Director)

Mr.Shashikant R. Yadav (Whole-time Director)

Mr.Aiyush M. Yacoobali (Whole-time Director)

Mr.Bipinchandra Lineswala (Whole-time Director)

Mr.Chetan T. Halvawala (Director)


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Mr.Paresh H. Zaveri Director (Director)

4. Bankers

Bank of Baroda

Canara Bank

HDFC Bank

Prime Co-operative Bank

5. Internal Auditor

Anvish Sanghavi & Company

Chartered Accountant

Surat.

1.3 IDEOLOGY

The emphasis in SGSSL is the ‘Client’. We are committed to

service our clients employing a personalized and human approach,

understanding their need and customizing solutions to fulfill their need. It is an

approach that is inculcated and ingrained in all the employees and is followed

from the top to bottom in the organization. We cater to our clients by offering

them insights in to the markets, advising them and providing them with our best

services.

CRM (Customer Relationship Management) Approach is follows

Speed & Quality in Delivery System

Consistency of service quality

Professional Approach

Fulfilling the Client’s need


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5


Indian Economy Overview

India's economy is on the fulcrum of an ever increasing growth curve. With

positive indicators such as a stable 8-9 per cent annual growth, rising foreign

exchange reserves, a booming capital market and a rapid rise in FDI in the last

year, India has emerged as the second fastest growing major economy in the

world.

The economy has been growing at around 9 per cent in the past two years

recording a growth rate of 9 per cent and 9.4 per cent in 2005-06 and 2006-07

respectively. Significantly, the industrial and service sectors have been

contributing a major part of this growth, suggesting the structural transformation

underway in the Indian economy.

For example, industrial and services sectors have logged in a 10.9 and 11 per

cent growth rate in 2006-07 respectively, against 9.6 per and 9.8 cent in 2005-06.

Similarly, manufacturing grew by 9.1 per cent and 12.3 per cent in 2005-06 and

2006-07 and trade, hotel, transport and communication recorded a growth of 10.4

per cent and 13 per cent, respectively.

And this process continues in the current fiscal year. On the back of 8.4 per

cent and 9.6 per cent growth in GDP in the first quarter of 2005-06 and 2006-07,

GDP grew by 9.3 per cent during April-June 2007.

While overall industrial production grew by 9.2 per cent during April-

September 2007, significantly, basic goods and capital goods rose by 9.4

per cent and 19.6 per cent this year compared to 8.8 per cent and 17.5 per

cent during the same period last year.

Services grew by 10.6 per cent in April-June 2007, compared to 9.2 per

cent and 11.7 per cent during the corresponding period in 2005-06 and

2006-07.

Manufacturing grew by 9.7 per cent during April-September this year, on

the back of 12.3 per cent growth during the same period last year.


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Core infrastructure sector continued its growth rate recording 6.6 per cent

growth, with electricity generation rising by 7.6 per cent this year

compared to 6.7 per cent last year.

Exports grew by 18.5 per cent in dollar terms during April-September

2007. Imports increased by 25.5 per cent in April-September 2007.

Money Supply (M3) has grown by a robust 22.5 per cent (year-on-year) as

of October 26, 2007 compared to 18.4 per cent last year.

The annual inflation rate in terms of WPI was 2.97 per cent for the week

ended October 29, 2007 as compared to 5.35 per cent a year ago.

Fiscal deficit and revenue deficit decreased by 6.1 per cent and 11.8 per

cent during April-September 2007-08 over the corresponding period last

year.

Economic analysis

Following factors are also determine and have significant influence on

economy, so that it must be analyzed while doing an economic analysis.

Per Capita Income

With significant acceleration in the growth rate of the Indian economy,

India's per capita income has increased at a rapid pace. Per capita income has

increased from US$ 460 in 2000-01 to almost double to US$ 797 by the end of

2006-07. Further, India's per capita income is estimated to be over US$ 1000 in

2007-08, and is expected to increase to US$ 2000 by 2016-17 and US$ 4000 by

2025. This growth rate will, consequently, propel India into the middle-income

category.

Measures of Deficits - Centre and States

Lower interest rates have helped the States reduce their primary deficits over the last two

years. They have managed to reduce revenue deficits to 0.05% of GDP in FY07 from

1.2% in FY05 without unduly reducing capital expenditure. The central government

needs to get its act together.


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% to GDP FY91 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07

Revenue Deficit -4.2 -6.2 -6.6 -7.0 -6.7 -5.8 -3.7 -3.1 -2.9

Gross Fiscal Deficit -9.4 -9.4 -9.5 -9.9 -9.6 -8.5 -7.5 -7.5 -8.6

Gross Primary Deficit -4.9 -3.8 -3.3 -3.5 -3.0 -2.8 -1.7 na na

India Economy Statistics

The Real growth rate of Gross Domestic Product of India over various quarters

for the year 2006-07 is as follows:

For the second quarter of the year 2006-07, the agriculture and allied

activities grew at a rate of 1.7 Percent, industries grew by 10.5 Percent, and the

services sector grew by 10.7 Percent. The infrastructure industry in the market

economy like India grew at a rate of 7.8 percent during the period of April-Nov

2006. The services sector was led by the sub-sectors such as hotels, restaurants,

transport, storage and communications.


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Fiscal Situation in India

The Fiscal Responsibility and Budget Management Act in India has

resulted a declining deficits both in the center and state levels. Some deficit

indicators are expected to decline by 0.7-09 Percent of GDP for the year 2006-

07. The Tax Collections of the Government has increased, particularly the taxes

such as Income Tax, Corporation Tax and the Service Tax. Tax collections from

the new taxes such as Fringe Benefit Tax and Cash Transaction Tax have also

increased. On the other hand the Non-Plan Expenditure of the Government has

increased

Industrial Growth

The industrial growth in the first quarter of 2007-08 picked up by 11%

compared to10.5% growth in the corresponding period a year ago. The growth

was led by the manufacturing sector which recorded 12% growth in production

during the first three month of 2007-08 as against the 11.7 % increase in the

corresponding months a year before. The industrial growth was also aided by

electricity sector that rose from 5.3% in April-June period of 2006-07 compared to

8.3% in the corresponding period of the present fiscal.

Inflation Trends

The overall WPI based inflation during the four-month average (April- July)

2007-08 is well anchored below the earlier targeted 5.5%. The counter inflation

measures exercised have brought the rising inflation to well within the targeted

number for the current year of 4-4.5%. In July 2007 the WPI based inflation

moderated to 4.4%.

However when compared over the previous year we see the rise in price

index mainly on account of primary and manufactured products. Price index of

the primary articles rose by 9.7% during the month of July 2007 as against 5.0%

in the same month a year ago and price index of manufactured goods increased

by 4.8% compared to 3.7% in the corresponding month of previous fiscal.

Monetary Indicators

There has been a slight expansion in the money supply in the first week of

July (financial year so far) 2007 as against the increase of 3.9% in the same

month of the previous year. Borrowings by the government sector widened


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further by 8.9%.Bank credit to the commercial sector however, was pulled down

by 0.3% in July2007. Non-monetary liabilities of the banking sector dropped by

7% recorded in July2007 compared to the increase of 10.5% in the

corresponding month of previous fiscal. An increase of 6.2% was seen in the

aggregate deposits, higher than the increase in the previous year.

Stock Market Trends

The recent movements in the indices have been due to the changes in the

global business climate. The foreign investments in the Indian stock market

partially govern the national indices. The 30 stock indexes Sensex touched

14936 points on 1st August 2007, rising by about two percent over the level of

14570 attained in the previous month, this year and Nifty was found to rise by 0.8

percentage points. In July 2007 we observed Sensex cross the 15000 mark again

touching the peak15795 points. The push-up in the index was aided by FII

investments into the Indian markets, who were the net buyers in July 2007.

Fiscal Trends

The total tax collected went up by 28% to Rs 88495 crore over the

collection in the same month of the previous year. Corporation tax currently

contributes 28% to the total tax collected; it rose by 48% during the April- June

period of 2007-08, close to the collection rate recorded in the first quarter of

previous fiscal. Tax collection from the income sources swelled by 25% during

the period, accounting for 15% to the total tax collected.

Foreign Trade

Indian merchandise exports picked up by 18.11% during the first quarter of

2007-08 touching USD 34.3 billion. However the exports growth in the first

quarter of current fiscal could not match the growth of over 30% recorded in the

corresponding quarter of 2006-07. The low growth is mainly due to a host of

constraints that include high rate of exchange, rising cost of raw material and

increase in borrowing rate.

Imports however have clocked a growth of 34.30%, much higher than what was

posted in the same period a year ago.


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Capital Inflows

During the April-May period of 2007-08, India attracted total capital inflows

of over USD 7 billion, where half of the investment was received from the foreign

direct investment and the rest came from the portfolio component. FDI received

during April- May 2007-08was USD 3.6 billion, one-fifth of what was achieved in

2006-07.The remaining USD 3.8 billion came from the portfolio sources on

account of major activity from the FIIs during the period.

Foreign Exchange Reserves

Foreign exchange reserves are all set to cross USD 230 billion as in the

first week of August India’s reserves touched USD 229.34 billion. Since April

2007, USD 25billion was added to India’s forex reserves. Foreign currency assets

rose to USD221.98 billion and gold position to USD 7 billion. The high inflow of

capital was through ECB channel (External commercial borrowings). Net ECB

disbursements accounted for a third of total net capital inflows in 2006-07. The

cap was later raised to 22 billion.

Trends in Exchange Rates

July 2007 witnessed a gradual depreciation in Rupee against the USD.

The currency movement featured a high of Rs 40.66 in the beginning of the

month to Rs 40.24, before appreciating further to Rs 40.54 against the

greenback. Indian Rupee against the USD averaged at Rs 40.41 during the

month of July 2007.It seems that the government seems to be caught between

attracting investments and preventing the local currency from further appreciating

against the USD. The imposition of cap on overseas borrowings is a step to bring

down the level of borrowings from its current level.

Agriculture and Monsoon

Numbers released in the last week of September 2006 by ministry of

agriculture show that from 1st June 2006 to 27th September 2006 actual rainfall

received in the country was at the normal level without any departure. The

country can hope to have a good harvest this season on account of good rainfall

in August and September 2006.From the first week of June to last week of


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September 2006, 26 subdivisions were found receiving excess / normal rainfall

and the remaining 10 subdivisions with deficient and scanty rainfall.


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13


ENGINEERING INDUSTRY IN GENERAL

MARKET OVERVIEW

The Engineering sector is the largest segment of Indian Industry

The engineering sector is the largest segment of the overall Indian industrial

sector. India has a strong engineering and capital goods base. The important

groups within the engineering industry include machinery & instruments, primary

and semi finished iron & steel, steel bars & rods, non-ferrous metals, electronic

goods and project exports. The engineering sector employs over 4 million skilled

and semi-skilled workers (direct and indirect).

The sector can be categorized into heavy engineering and light engineering

segments. Heavy engineering segment forms the majority of the engineering

sector in India. In the year 2006-07, out of the total engineering production of

US$ 30 billion, the heavy engineering market contributed over 80 per cent with

the light engineering segment accounting for the remaining. India has a well-

developed and diversified industrial machinery/capital base capable of

manufacturing the entire range of industrial machinery. The industry has also

managed to successfully develop advanced manufacturing technology over the

years. Among the developing countries, India is a major exporter of heavy and

light engineering goods, producing a wide range of items. The bulk of capital

goods required for power projects, fertilizer, cement, steel and petrochemical

plants and mining equipment are made in India. The country also makes

construction machinery, equipment for irrigation projects, diesel engines, tractors,

transport vehicles, cotton textile and sugar mill machinery.

The engineering industry has shown capacity to manufacture large-size

plants and equipment for various sectors like power, fertilizer and cement. Lately,

air pollution control equipment is also being made in the country. The heavy

electrical industry in India meets the entire domestic demand.


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A large number of multinational companies like Cummins, Alfa Laval, Sandwik

Asia, etc. have also entered the engineering industry in India.

The heavy and light engineering segments in this sector can be further

classified as shown in the table. As the sector demands a high level of capability

and investment, it is dominated by large organized players.

Heavy Engineering Industry

Industry segment No. of organized players

Cement machinery 18

Sugar machinery 27

Rubber machinery 19

Metallurgical machinery 39

Machine tool 125

Material handling equipment 50

Mining machinery 32

Dairy machinery 16

Light Engineering industry

Welded steel pipes & tubes 123

Process control instrument 26

Antifriction roller bearing 19

Plain paper copier 12

This industry comprises multinational companies, joint ventures, large

domestic players, regional players in the organized sector and large number of

small players in the unorganized sector. Some unorganized players also exist at

lower levels where the technology required is very basic.

Public sector enterprises play an important role in the heavy engineering sector in

India. There are 34 public sector enterprises in this segment.


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THE ENGINEERING SECTOR IS EXPERIENCING ROBUST GROWTH

Domestic performance

The Indian engineering industry has emerged as a dynamic sector in the

country’s industrial economy and has made the country self reliant in key areas.

The total production of the Indian engineering industry was approximately US$ 30

billion in 2007.The performance of the engineering sector is linked to the

performance of the end user industries for this sector.

The user industries for engineering include power utilities, industrial majors

(refining, automotive and textiles), government (public investment) and retail

consumers (pumps and motors).The engineering sector has been growing, driven

by growth in end user industries and the new projects being taken up in the

power, railways, infrastructure development, private sector investment fields etc.

The key growth drivers are:-

The growth of the key end user sectors in India. For example, the

domestic sales of automobiles have grown at the compounded annual

growth rate of around 14 per cent over the past four year.

Government’s emphasis on power and construction sector has increased

for the past few years and thus increasing the demand for capital goods.

Further, India is being preferred by global manufacturing companies as an

outsourcing destination due to its lower labour cost and better designing

capabilities. Engineering companies thus have a huge potential for direct

exports and outsourcing.


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Engineering exports crossed the US$ 10 billion mark in 2006-07, up 28.33 per

cent over the previous year. The engineering sector accounted for 14 per cent of

the country’s total exports.

The nature of Indian engineering exports is also changing with time. India

is moving from low-value goods exported to developing countries to sophisticated

goods targeted at developed countries. Capital goods now account for 26 per

cent of total engineering exports. The engineering exports to the European Union

countries accounted for 15 per cent and to North America accounted for 14 per

cent in 2007. Engineering goods worth US$ 2.30 billion were exported to USA

alone in 2006-07. Germany, known for its engineering capability, imported

engineering goods worth US$ 450 million from India in 2007. Engineering exports

to UK, Netherlands and France are also on the rise.

A key driver for increased engineering exports is the trend towards shifting of

global manufacturing bases to low cost countries like India. This trend is

expected to boost exports of engineering goods from India over the next five

years. According to Engineering Exports Promotion Council (EEPC), engineering

exports could touch US$ 30 billion by 2008-09. In such a scenario, India, driven

by the engineering sector, would emerge as a key global manufacturing hub.

FACTOR CONDITIONS

Among developing countries, India offers the best combination of low

costs, availability and skills and capabilities of manpower for the engineering

sector. In terms of availability and skills, India produces over 500 PhDs, 200,000

engineers, 300,000 non-engineering postgraduates and 2,100,000 other

graduates each year, thereby ensuring a steady supply of qualified manpower for

the sector. Several companies in the engineering sector have leveraged India’s

advantages in labour effectively.

Competitive industry with well developed capabilities

The Indian engineering industry is highly competitive with a number of

players in each segment. A large number of multinational companies such as

Cummins, ABB and Alfa Laval have also entered the industry.


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The intense competition has led to Indian players developing improved

capabilities that have made them more competitive. Companies have become

more quality conscious and upgraded their technology base, besides diversifying

their manufacturing range in tune with global market requirements. For example,

more than 2500 firms in the engineering sector in different areas such as casting

and forging, automobile parts, machine tools, electrical machinery, pumps, textile

machinery, etc. to name a few, have acquired ISO 9000 accreditation. Other

areas where firms are becoming more competitive include R&D, Product

Development and Service.

This has resulted in MNCs increasingly leveraging their Indian arms to support

their global operations.

Growing demand

The user industries of engineering products and services include power

utilities, industrial majors (refining, automotive and textiles), government (public

investment) and retail consumers (pumps and motors). Thus, the performance of

the engineering sector is linked to the industry which in turns depends on the

overall economy. Capacity creation in sectors like infrastructure, power, mining,

oil & gas, refinery, steel, automotive, consumer durables drives the engineering

industry.

Industrial growth (measured in terms of the Index of Industrial Production)

recorded a rate of 9.2 per cent during the 2006-07 compared with 9.0 per cent

during the same period the previous year.

Sectors such as automotive and textiles have benefited from the changing

demographic profile of the Indian consumer. Key demographic changes include:

Increasing income levels and greater propensity to spend.

Lifestyle changes, driven by trends like increase in nuclear families,

working women and exposure to global trends. These changes have been


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driving consumption in end-user sectors such as consumer durables. This,

in turn, has facilitated growth in the engineering sector.

Related and supporting industries

The presence of supporting industries provides a conducive environment

for the engineering sector to grow and prosper. India’s engineering industry has

significant support from India’s well-established IT sector, as well as institutions

of higher education. India has a well-developed technical and tertiary education

infrastructure of over 250 universities, 1500 research institutions and over 10,000

higher education centers, which support the engineering sector not only by

supplying a steady stream of qualified manpower, but also in areas of research

and development.

India has a well-developed vendor base for supporting engineering industries.

Industries such as machine tools, textile machinery, auto components, etc.,

provide ample support to the engineering sector. Some of these sectors have

developed global capabilities and help the engineering sector achieve global

competitiveness.

PROFILE OF HEAVY AND LIGHT ENGINEERING SEGMENTS

Heavy Engineering Industry Capabilities / capacities of Indian

manufacturers

Heavy Electrical Industry Large electrical equipment used in steel plants,

petrochemical complexes and other such heavy industries are being

manufactured in the country.

Turbines & Generator Sets Capacity established for manufacture of various

kinds of turbines such as steam & hydro turbines including industrial turbines is

more than 7000 MW per annum.


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Boilers Indian industry is continuously upgrading their technology and is

introducing better products.

Switchgear and Control The entire range of circuit

Gear breakers from bulk oil, minimum oil, air blast, vacuum is manufactured in

India to standard specifications.

Textile Machinery Industry It has a capital investment of US$ 326 million

(Rs.15000 million) and an installed capacity of US$ 653 million (Rs.30000 million)

per annum. Approximately 120 companies manufacture a complete range of

textile machinery in India.

Cement Machinery Industry The industry is fully capable of meeting the

domestic demand of cement machinery. The value of the existing installed

capacity has been estimated at US$ 130.5 million (Rs 6000 million) per annum.

Sugar Machinery Industry Installed capacity of US$ 43.5 million (INR 2000

million) to manufacture complete sugar plants and components

Rubber Machinery Industry There are at present 19 units in the organised

sector for the manufacture of rubber machinery mainly required for tyre / tube

industry.

Material Handling There are 50 units in the organized sector for Equipment the

manufacture of material handling equipment.

Metallurgical Machinery At present there are 39 units in the organized sector

engaged in the manufacture of various types of metallurgical machinery.

Mining Machinery At present there are 32 manufacturers in the organized sector

both in public and private sector for underground and surface mining equipment

of various types. Out of the 32, there are 17 units manufacturing underground

mining equipment.


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Dairy Machinery Industry At present there are 16 units manufacturing dairy

machinery and equipment in the organized sector, both in private and public

sectors.

Machine Tool Industry There are around 125 machine tool manufacturers in the

organized sector as also around 300 units in the small ancillary sector.

Light Engineering Industry Capabilities/capacities of Indian manufacturers

Welded Steel Pipes & There are currently 123 units engaged in the Tubes

manufacture of welded steel pipes & tubes in the organized sector. There is

adequate capacity of the manufacture of these types of pipes & tubes.

Process Control Instrument There are 26 units in the organized sector

manufacturing process control instruments & systems, out of which seven units

are capable of taking up complete turn key projects for the entire instrumentation

system including software required by process industries. The industry is in a

position to meet approximately two-thirds of the country’s demand.

Medical & Surgical Indigenous manufacturers are currently

Equipment in a position to manufacture a wide variety of electro-medical

equipments such as electro-cardiograph (ECG machine), X-rays scanner, CT

scanner, short-wave physiotherapy unit, electro surgical units, blood chemistry

analyzer etc. The indigenous industry is capable of supplying about 40 per cent

of the demand and the rest is met by imports.

Industrial Fasteners Industrial fasteners cover high tensile and mild steel bolts,

nuts, screws, studs and pins. All types of fasteners except high tensile and

special type fasteners are reserved for SSI Sector.


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Industrial Gears The Industry is de-licensed as per the current Industrial

Licensing Policy and is eligible for automatic approval for Foreign Direct

Investment.

Antifriction Roller Bearing The Indian bearing industry has grown rapidly during

the last few years. Today the industry is meeting around 70 per cent of its

demand for common varieties and sizes of bearings while rest is being imported.

At present there are 19 units in the organized sector manufacturing both ball and

roller bearings. The industry has established a highly diversified product range of

around 500 types of bearings.

Plain Paper Copier There are, presently, 12 units manufacturing plain paper

copiers. The major manufacturers have technical collaboration with reputed

foreign companies.

Sewing Machine The major source of production of sewing machines in the

country is from small scale sector as manufacture of conventional “hand

operated” sewing machine is reserved for this sector. The demand for

conventional domestic machines is being fully met indigenously. The industry has

potential to undertake export to developing countries.

Bicycle Industry The bicycle industry is mostly in the small scale sector. Large-

scale units have been permitted to manufacture bicycle frames, chains and rims

for captive consumption only. The bicycle manufacturing is an established

industry in the country with well accepted quality standards in the international

market. The export for the year 2001-02 was to the tune of US$ 33.9 million (Rs

1620 million) and import was negligible

Steel Forgings This industry is well established in the country having modern

manufacturing facilities. Besides meeting the requirement of domestic market, it

is well established in export market also.

FUTURE OUTLOOK

The engineering sector’s future outlook is promising. Drivers like

infrastructure development, industrial growth and favourable policy regulations


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will ensure growth in manufacturing. Emerging trends such as outsourcing of

engineering services can provide new opportunities for quantum growth.

Engineering and design services such as new product designing, product

improvement, maintenance and designing manufacturing systems are

increasingly getting outsourced to countries like India. It has been estimated that

the present market potential for outsourced engineering services is between US$

7 billion and US$ 12 billion, while the value of work currently undertaken by

vendors in India is estimated between US$ 450 million and US$ 500 million.

India’s engineering sector has a significant potential for future growth, both in

manufacturing as well as services.


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INTRODUCTION OF COMPANIES

1. BHEL

BHEL is the largest engineering and manufacturing enterprise in India in

the energy-related/infrastructure sector, today. BHEL was established more than

40 years ago, ushering in the indigenous Heavy Electrical Equipment industry in

India - a dream that has been more than realized with a well-recognized track

record of performance. The company has been earning profits continuously since

1971-72 and paying dividends since 1976-77.

BHEL manufactures over 180 products under 30 major product groups

and caters to core sectors of the Indian Economy viz., Power Generation &

Transmission, Industry, Transportation, Telecommunication, Renewable Energy,

etc. The wide network of BHEL's 14 manufacturing divisions, four Power Sector


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regional centers, over 100 project sites, eight service centers and 18 regional

offices, enables the Company to promptly serve its customers and provide them

with suitable products, systems and services -- efficiently and at competitive

prices. The high level of quality & reliability of its products is due to the emphasis

on design, engineering and manufacturing to international standards by acquiring

and adapting some of the best technologies from leading companies in the world,

together with technologies developed in its own R&D centers

BHEL has acquired certifications to Quality Management Systems (ISO 9001),

Environmental Management Systems (ISO 14001) and Occupational Health &

Safety Management Systems (OHSAS 18001) and is also well on its journey

towards Total Quality Management.

BHEL has

Installed equipment for over 90,000 MW of power generation -- for Utilities,

Captive and Industrial users.

Supplied over 2,25,000 MVA transformer capacity and other equipment

operating in Transmission & Distribution network up to 400 kV (AC & DC).

Supplied over 25,000 Motors with Drive Control System to Power projects,

Petrochemicals, Refineries, Steel, Aluminum, Fertilizer, Cement plants,

etc.

Supplied Traction electrics and AC/DC locos to power over 12,000 kms

Railway network.

Supplied over one million Valves to Power Plants and other Industries.

BHEL's operations are organized around three business sectors, namely Power,

Industry - including Transmission, Transportation, Telecommunication &

Renewable Energy - and Overseas Business. This enables BHEL to have a

strong customer orientation, to be sensitive to his needs and respond quickly to

the changes in the market.

BHEL's vision is to become a world-class engineering enterprise, committed to

enhancing stakeholder value. The company is striving to give shape to its

aspirations and fulfill the expectations of the country to become a global player.


25

http://www.bhel.com/overseasbusiness/international.php


The greatest strength of BHEL is its highly skilled and committed 42,600

employees. Every employee is given an equal opportunity to develop himself and

grow in his career. Continuous training and retraining, career planning, a positive

work culture and participative style of management? all these have engendered

development of a committed and motivated workforce setting new benchmarks in

terms of productivity, quality and responsiveness.

COMPANY PROFILE

Registered Office

BHEL House, Siri Fort, , New Delhi, Delhi - 110049

Tel: 26001010, 26001011, 26001012,

Fax: 26493021,

Website: www.bhel.com

Registrar & Share Transfer Agent

Karvy Computershare Private Ltd

105-108, Arunchal Bldg, 19 Barakhamba Road, Connaught Place, New Delhi -

110001, Delhi.

Key OfficialsName DesignationAshok K Puri Chairman and Managing director

Other Details

Business Group Public Sector

Industry Engineering – Heavy

BSE Code 500103

NSE Code BHELEQ

Listings BSE , CoSE , HSE , ISE , NSE.

Board of Director

S.No Name Designation

1 Mr. Ashok K Puri Chairman and Managing director


26

http://www.bhel.com/


2 Mr. Manish Gupta Director3 Mr. K Ravi Kumar Director4 Mr. Shekhar Datta Director5 Mr. Anil Sachdev Director6 Mr. Sanjay M Dadlika Director7 Mr. Ashok K Aggarwal Director8 Mr. C P Singh Director9 Mr. A K Mathur Director

10 Mr. C S Verma Director11 Dr. Surajit Mitra Director12 Mr. B P Rao Director13 Mr. S K Jain Director14 Mr. Madhukar Director15 Mr. S Ravi Part Time Director16 Mr. B S Meena Part Time Director

Key Executives


1 Mr.N K Sinha Co.Secretary & Compl. Officer

SHARE HOLDING PATTERN

Share Holding Pattern as on :

31/12/2007 30/09/2007 30/06/2007

Face Value 10.00 10.00 10.00

No. Of

Shares

% Holdin

g

No. Of Shares

% Holdin

g

No. Of Shares

% Holdin

gPROMOTER'S HOLDING

Indian Promoters 33151040

0 67.72

331510400

67.72 33151040

0 67.72

Sub Total 33151040

0 67.72

331510400

67.72 33151040

0 67.72

NON PROMOTER'S HOLDINGInstitutional Investors

Mutual Funds and UTI 23778739 4.86 23471294 4.79 24871067 5.08Banks Fin. Inst. And Insurance

14094338 2.88 14075682 2.88 14672700 3.00

FII's 95659421 19.54 97417423 19.90 95392318 19.49

Sub Total 13353249

8 27.28

134964399

27.57 13493608

5 27.56


27


Other InvestorsPrivate Corporate Bodies 14500607 2.96 14001467 2.86 13737212 2.81NRI's/OCB's/Foreign Others

511549 0.10 427025 0.09 477311 0.10

Directors/Employees 3020 0.00 3020 0.00 3020 0.00Others 170152 0.03 361951 0.07 270781 0.06

Sub Total 15185328 3.10 14793463 3.02 14488324 2.96General Public 9291774 1.90 8251738 1.69 8585191 1.75

GRAND TOTAL 48952000

0 100.00

489520000

100.00 48952000

0 100.00

2. BEML

BEML Limited is a premier ISO 9001-2000 Company in India and the

second largest manufacturer of earthmoving equipment in Asia. A four- decade-

old multi-locational and multi-product company, BEML has vital applications in

diverse sectors of economy such as coal, mining, steel, cement, power, irrigation,

construction, road building and railway. It has expanded its product range to

cover high-quality hydraulics, heavy-duty diesel engines, Welding robots and

undertaking of heavy fabrication jobs.

A public sector undertaking, BEML commands 70% market share in

domestic earthmover industry. Nearly 40% of its equity has been divested to

financial institutions and public. BEML has its corporate headquarters and central

marketing division in Bangalore

MISSION

To conserve resources and eliminate waste through optimum utilisation of

men, money, materials and machinery

To pursue state-of-the-art and environment friendly technologies as well

as develop cost effective and value-added products

To be competitive, responsive and continuously improve services so as to

ensure total customer satisfaction

To grow into global company guided by a keen sense of vision and

business ethics as well as to maximise forex earnings

To achieve and retain a dominant position in the manufacture and supply

of Earthmoving, Mining, Construction, Railway and Defence Equipment by

establishing high standards of quality, capability and reliability


28


EXPORT

Over the years, BEML has built up a reputation as a top quality supplier of

Surface Mining Equipment. BEML exports machines to over 25 countries in

Europe, Africa and the Middle East. BEML is a recognized export house.

BEML's strength in handling large scale trading and counter-trade have yielded

results in enhancing export activities. In addition to export of equipment, BEML's

International Division exports engineering goods, commodities and services.

During the year 2003-2004 BEML exported goods worth Rs 520 million.

BEML plans to further strengthen its global presence by setting up

overseas offices and joint ventures in diverse areas, and by executing turnkey

projects in mining and allied fields.

YEAR EVENT

2001 - Awarded the Best Exporter by the Department of Industry & Commerce,

2002 - Awarded the Best Exporter by the Department of Industry & Commerce,

- Regional award for highest exports awarded by Engineering Export Promotion

Council, Southern Region

2003 - Manufacture and supply of hi-tech stainless steel metro coaches to DMRC

- The Equipment division of Mysore unit was awarded the National Safety Award

under the Scheme I and II

- Awarded the Best Exporter by the Department of Industry & Commerce, GoK

- Certificate of Excellence obtained from Engineering Export Promotion Council,

Southern Region

2004 - 7 T Class Excavator - BE71 and Backhoe loader - BL 9H were formally

launched.

- Four cylinder indigenous engine B4D105 has been introduced as an earth

moving equipment

- Awarded the Best Exporter by the Department of Industry & Commerce, GoK.

- Our Company's Equity Shares got voluntarily delisted from DSE and MSE, and

application made for voluntary delisting of our Equity Shares to CSE.


29


2007 - The credit rating of our Company has been done by ICRA Limited and it

has assigned "IrAAA" (pronounced as Issuer Rating Triple A) to our Company.

This rating indicates the highest credit quality rating assigned by ICRA Limited,

which means our Company carries the lowest credit risk.

- Formation of Joint Venture Company in the name and style of BEML Midwest

Limited on April 18, 2007 under the registration no.

U13204AP2007PLC053653/2007-2008 with Midwest Granite Private Limited.

2007

- A consortium of BEML Ltd, Mitsubishi and Rotem has formally got the Delhi

Metro Rail Corporation's order worth Rs 1,144 crore for metro coaches.

- BEML Ltd has set up a subsidiary in Brazil for sourcing and assembling of

mining and construction equipment to cater to the growing Latin American

markets.

COMPANY PROFILE

Registered Office

“BEMLSOUDHA", # 23/1, IV Main, Sampangiramanagar, Bangalore

Karnataka - 560027

Tel: 2224141 2224142 2224143 222414, , ,

Fax: 2226883-2276443,

Website: www.bemlindia.com


Karvy Computer share Private Ltd

Plot No. 17-24, Vittal Rao Nagar, Madhapur,

Hyderabad - 500081, Andhra Pradesh.

Tel: 23420818, 23420824

Key Officials

Name DesignationV R S Natarajan Chairman and Managing director

Other Details


30

http://www.bemlindia.com/


Business Group Public Sector

Industry Engineering - Heavy

BSE Code 500048

NSE Code BEMLEQ

Listings BSE , CoSE , NSE , OTCEI

ISIN No. INE258A01016 Incorporation 11/05/1964

Public Issue Date 14/12/1994

Board Of Directors


1 Mr. Kalyani Gopal, Chairman & Addl.Director2 Mr. V R S Natarajan Chairman and Managing director3 Mr. N R Mohanty Director4 Dr. Jayanta Bagchi Director5 Mr. V Mohan Director6 Dr. Arabinda Tripathy Director7 Mr. M Poongavanam Director8 Prof. Prakash G Apte Director9 Mr. N K Sreenivasan Director10 Mr. K V K Seshavataram Director11 Mr. Mohd. Haleem Khan Director12 Prof. S N Chary Director13 Mr. A Prasad Director14 Mr. R K Rustagi Director15 Mr. Birendra Kumar Director16 Mr. Ramamurthy V Executive Director17 Mr. Gautam Sen Executive Director18 Mr. Krishna Reddy A R Executive Director19 Mr. Satyajeet Rajan Part Time Director

Share Holding Pattern


31/12/2007 30/09/2007 30/06/2007

Face Value 10.00 10.00 10.00

No. Of

Shares

% Holdin

g

No. Of Shares

% Holdin

g

No. Of Shares

% Holdin

gPROMOTER'S HOLDING


31



0 54.03

22500000

54.03 2250000

0 61.23

Sub Total 2250000

0 54.03

22500000

54.03 2250000

0 61.23

NON PROMOTER'S HOLDINGInstitutional Investors

Mutual Funds and UTI 5559013 13.35 5450870 13.09 4515411 12.29Banks Fin. Inst. and Insurance

9397133 22.57 2320483 5.57 2521439 6.86

FII's 0 0.00 6559966 15.75 3630003 9.88

Sub Total 1495614

6 35.91

14331319

34.41 1066685

3 29.03

Other InvestorsPrivate Corporate Bodies 1547814 3.72 1678264 4.03 1078149 2.93NRI's/OCB's/Foreign Others

260630 0.63 281238 0.68 284591 0.77

Others 14096 0.03 78918 0.19 130755 0.36Sub Total 1822540 4.38 2038420 4.89 1493495 4.06

General Public 2365814 5.68 2774761 6.66 2084152 5.67

GRAND TOTAL 4164450

0 100.00

41644500

100.00 3674450

0 100.00

3. SUZLON

The Suzlon story began in 1995 with just 20 people; and in a little over a

decade has become an epic. A company of over 13,000 people, operations

across the America, Asia, Australia and Europe, fully integrated manufacturing

units on three continents, sophisticated R&D capabilities and market leadership

in Asia, ranked 5th in terms of global market share.

The seeds of the idea that became Suzlon was sown by Mr. Tanti’s venture

into the textile industry just as it began in its booming years.

Faced with soaring power costs, and with infrequent availability of power hitting

his business hard - Mr. Tanti looked to wind energy as an alternative. His first

brush with wind energy was as a customer, having secured two small-capacity

wind turbine generators to power his textile business. Many regarded this venture

as foolhardy, with the capital expenditure for the wind turbines exceeding his

textile business itself! But he had his sights on more than the immediate, having

already seen the potential of wind power and the global opportunities in the field.

Moving quickly, he set forth to acquire the basic technology and expertise to set

up Suzlon Energy Limited - India’s first home-grown wind technology company.


32


The company registered revenues of INR 12 Crore in the first year, and

has since achieved consistent dramatic growth, registering revenues of USD

1,405 in FY2008– just a decade after inception. The company went public with a

highly successful IPO in September 2005.

Today Suzlon is being ranked the 5th leading wind power equipment

manufacturer with a global market share of 7.7%. The company seized market

leadership in India over 8 years ago, and has consistently maintained over 50%

market share, installing over 2,000 MW of wind turbine capacity in the country.

The company adopted innovation at the very core of its thinking and ethos. This

approach has resulted in several firsts’ starting with a revolutionary ‘End-to-End

solution package’, creating demand through providing customers with

comprehensive solution starting from creating demand though project and

infrastructure development, and converting windy sites into kilowatt-hours and

profitable businesses ventures for suzlon’s customer.

Suzlon combined this with another visionary step - full backward

integration of the supply chain. Suzlon by this approach has developed

comprehensive manufacturing capabilities for all critical components in our wind

turbines - bringing into play economies of scale, quality control, and assurance of

supplies in an increasingly supply restricted market.

Looking for growth not just in India, but across the world, Suzlon looked

past traditional markets for wind energy, and entered new and emerging high-

growth markets. This step has success in the rapid global expansion of Suzlon’s

business with orders from Australia, Brazil, China, Italy, Portugal, Turkey and the

United States.

We have set forth to fulfill the vision of a company as global as the

wind. Starting as an unknown player in a nascent industry in India, Suzlon grew

to become the leading player on Indian wind power stage, and from there has

grown to rank among the Top-5 wind turbine manufacturers in the world. As

Suzlon takes ever larger strides on the international stage, we have set forth a

renewed Vision to rank among the top three wind players in the world, and to be


33


among the market leaders in the markets of Asia, Europe and the United States.

Suzlon’s with its internationalized business model, fully integrated

supply chain, R&D focus on cost-per-kWh reduction, is today an agile, fast

moving organization that is well equipped to take on a dynamic, changing market

place with innovative products and solutions. For a glimpse of our achievements

over the years, visit Suzlon’s milestones.

Company Profile

Registered Office

"Suzlon", 5, Shrimali Society,

Near Shri Krishna Complex,

Navrangpura, Ahmedabad, Gujarat - 380009

Tel: 26471100, , ,

Fax: 26565540,

Email: [email protected]

Website: www.suzlon.com


Karvy Computershare Private Ltd

Plot No.17-24, Vittal Rao Nagar,

Cyberabad, Hyderabad - 500081,

Andhra Pradesh.

Tel: 23420815

Board of Directors

S.No Name Designation1 Mr. Tulsi R Tanti Chairman and Managing director2 Mr. Girish R Tanti Executive Director3 Mr. Ashish Dhawan Independent Director4 Mr. V Raghuraman Independent Director5 Mr. Pradip Kumar Khaitan Independent Director6 Mr. Ajay Relan Independent Director

Key Executives


34

http://www.suzlon.com/

mailto:[email protected]

http://www.suzlon.com/Milestone.aspx?cp=1_5


S.No Name Designation1 Mr.Hemal A Kanuga Co.Secretary & Compl. Officer

Share Holding Pattern


31/12/2007 30/09/2007 30/06/2007

Face Value 10.00 10.00 10.00

No. Of

Shares

% Holdin

g

No. Of Shares

% Holdin

g

No. Of Shares

% Holdin

gPROMOTER'S HOLDING


0 65.91

198642400

68.98 20064240

0 69.72

Sub Total 19731870

0 65.91

198642400

68.98 20064240

0 69.72

NON PROMOTER'S HOLDING

Institutional Investors

Mutual Funds and UTI 10543112 3.52 5225010 1.81 1014376 0.35Banks Fin. Inst. and Insurance

1306550 0.44 373029 0.13 44080 0.02

FII's 67328901 22.49 61448742 21.34 64700001 22.48

Sub Total 79178563 26.45 67046781 23.28 65758457 22.85

Other Investors

Private Corporate Bodies 2311685 0.77 1193815 0.41 994327 0.35NRI's/OCB's/Foreign Others

1975153 0.66 1941710 0.67 1857934 0.65

Others 31559 0.01 99999 0.03 43474 0.02

Sub Total 4318397 1.44 3235524 1.12 2895735 1.01

General Public 18570820 6.20 19050775 6.62 18468788 6.42

GRAND TOTAL 29938648

0 100.00

287975480

100.00 28776538

0 100.00

4. PRAJ INDUSTRIES

The company is engaged in the design, manufacture, supply and

commissioning of fermentation and distillation equipments for the manufacture of

ethanol. The company was promoted by Pramond Chaudhari in 1985. The

company's plant is located at Bhosari, Pune (Maharastra). PIL came out with a

public issue of Rs.6.20 crore in January 1994. PIL manufactures plate head

exchangers in collaboration with REHEAT, Sweden. The company sells its


35


product under the name, 'HIFLUX' and solvent recovery systems under the brand

name 'Ecofine'. The company also manufactures pressure fermentation

breweries in collaboration with Dab Brav Consult Gmbh, Germany. The company

has a market share of 60 per cent and is the market leader in ethanol plant and

equipment manufacture. The company, in collaboration with Vogellbusch Gmbh,

Austria, introduced cascade continuous fermentation process, for the first time in

India. PIL has promoted a subsidiary in Singapore, Praj Far East Pte Ltd, for

export of design and engineering services and industrial products to the South

East Asian countries. The company plans to expand its manufacturing facilities

near Pune.

2004

-Praj Industries bags order worth over $15 mn

-Praj Industries gets nod to delist shares from Pune Stock Exchange Ltd with

effect from January 16, 2004.

-Praj Industries Ltd has informed that The Stock Exchange, Ahmedabad, has

approved the proposal for delisting of securities of the Company from the

Exchange w.e.f. March 31, 2004.

2005

- Company's R&D facility Matrix- the Innovation Center develops 'MashTone' an

innovative new bionutrient for the ethanol industry. MashTone is a unique nutrient

formulation for alcohol fermentation that improves the fermentation performance

resulting in high rate of yeast metabolism, healthy growth and improved yield.

2007

-Praj Industries Ltd has appointed Mr. Daljit Mirchandani as an Additional

Director of the Company. He will be Non-Executive and Independent Director on

the Board.

- Praj Industries has announced a joint venture with engineering and construction

company Aker Kvaerner.


36


-Praj Industries forms JV with Brazilian Engineering Major for Ethanol Plants.

COMPANY PROFILE

Registered Office

" PRAJ HOUSE ", Bavdhan, , Pune, Maharashtra - 411021

Tel: 22952214, 22951511, ,

Fax: 22951718,

Email: [email protected]

Website: www.praj.net


Intime Spectrum Share Registry Limited

C-13, Pannalal Silk Mill Compound,

LBS Marg, Bhandup (West),

Mumbai - 400078, Maharashtra.

Tel: 55555454

Key Officials

Name DesignationPramod Chaudhari Executive ChairmanShashank Inamdar Managing Director

Deepak Mogal Company Secretary

Other Details

Business Group Not Applicable


BSE Code 522205

NSE Code PRAJINDEQ

Listings BSE , NSE

ISIN No. INE074A01025

Incorporation 08/11/1985

Public Issue Date 18/01/1994

Board Of Directors



37

http://www.praj.net/

mailto:[email protected]


1 Mr. Rakesh Jhunjhunwala Director

2 Mr. Anil Joshi Director

3 Mr. Venkatachala Datar Director

4 Ms. Parimal Chaudhari Director

5 Mr. Sivaramakrishnan Iyer Director

6 Mr. Berjis Desai Director

7 Mr. Pramod Chaudhari Executive Chairman

8 Mr. Daljit Mirchandani Ind. Non-Executive Director

9 Mr. Shashank Inamdar Managing Director

10 Mr. Kishor Chaukar Non.Exe.Independent Director

5.ELECON

Established in 1951, Elecon Engineering Company Ltd of Vallabh

Vidyanagar, Gujarat, India, pioneered the manufacture of material handling

equipment in India. During these four decades, Elecon has designed and

implemented several landmark projects in India as well as abroad.

From a modest start of design and manufacture of Elevators and Conveyors from

which incidently, the company derives its corporate identity. viz. "Elecon". It has

grown over the years to be known as a pioneer of the concept of mechanised

way of Bulk Material Handling Equipment in India. During the span of more than 4

decades, Elecon has encompassed all the major core sectors through its

supplies of highly sophisticated equipment bearing ample testimony of the

symbolic mark of Elecon's unbeatable technology. Elecon has thus, made its

presence felt through consistent and satisfactory performance of its equipment in

such core sectors as fertilizer, cement, coal/power generation, chemical, steel

plant and port mechanisation etc., across the country.

Elecon is the first company in India to have manufactured sophisticated

equipment for Bulk Material Handling. Its product range includes design,

engineering, manufacture, supply, erection and commission of:

Wagon tipplers Bucket wheel stacker/reclaimers Barrel-type blender reclaimers Fertilizer reclaiming scrapers Limestone pre-homegenizing and blending plants


38

http://www.elecon.com/frm-mhe.html

http://www.elecon.com/frm-mhe.html


Single and twin bucket wheel bridge-type reclaimers Crawler-mounted trippers Stationary and shiftable conveying systems for open cast lignite mines Integrated coal handling plants for power stations Underground mining conveyors Open-cast conveying systems Ferrous and non-ferrous foundry products

Helical, spiral bevel helical, planetary and worm reduction gear units and

couplings.

Elecon has developed and perfected its skills in design, manufacture, erection and commissioning of coal handling plants. Over the years, Elecon has expanded its skills and expertise to include the designing and execution of turnkey contracts for:

Crushing Screening Stacking Blinding, and Reclaiming plants

for bulk materials such as limestone, iron-ore, bauxite, overburden, rock

phosphate and fertilizer.

COMPANY PROFILE

Registered Office & Factory

(Material Handling/Gear/Wind Mill Division), Post Box # 6, Anand - Sojitra

Road, Vallab Vidyanagar, Gujarat - 388120

Tel: 237016, 236521, 236469,

Fax: 236457,

Website: www.elecon.com



39

http://www.elecon.com/


Intime Spectrum Registry Ltd.

1st Floor,308, Jaldhara Complex, Opp. Manisha Society, Off.Old Padra Road,

Baroda - 390015, Gujarat.

Tel: 2250241

KEY OFFICIALS

Name DesignationPrayasvin B Patel Chairman and Managing director

OTHER DETAILS

Business Group Not Applicable


BSE Code 505700

NSE Code ELECONEQ

Listings BSE , NSE

ISIN No. INE205B01023 Incorporation 11/01/1960

BOARD OF DIRECTORS

S.No Name Designation1 Mr. Prayasvin B Patel Chairman and Managing director2 Mr. Hasmukhlal S Parikh Director3 Mr. Chirayu R Amin Director4 Mr. Pradip M Patel Director5 Mr. Upendra M Patel Director6 Dr. Amritlal C Shah Director7 Mr. Ashok J Patel Director

SHARE HOLDING PATTERN

Share Holding Pattern as on : 31/12/2007 30/09/2007 30/06/2007

Face Value 2.00 2.00 2.00

No. Of

Shares%

HoldingNo. Of

Shares%

HoldingNo. Of

Shares%

Holding

PROMOTER'S HOLDING

Indian Promoters 39150443 42.20 13053481 42.21 13036865 42.16

Sub Total 39150443 42.20 13053481 42.21 13036865 42.16

NON PROMOTER'S HOLDING


40


Institutional Investors

Mutual Funds and UTI 18224066 19.64 5378386 17.39 6157416 19.91

Banks Fin. Inst. and Insurance 296831 0.32 53167 0.17 8270 0.03

FII's 5185094 5.59 1615352 5.22 1730073 5.59

Sub Total 23705991 25.55 7046905 22.79 7895759 25.53

Other Investors

Private Corporate Bodies 3717702 4.01 1387294 4.49 1467752 4.75

NRI's/OCB's/Foreign Others 3491470 3.76 1105535 3.58 239941 0.78

Others 815291 0.88 293632 0.95 343238 1.11

Sub Total 8024463 8.65 2786461 9.01 2050931 6.63

General Public 21890053 23.60 8036803 25.99 7940095 25.68

GRAND TOTAL 92770950 100.00 30923650 100.00 30923650 100.00


41


.

FUNDAMENTAL ANALYSIS

The fundamental Analysis allows for selection of securities of different


42


sectors of the economy that appear to offer profitable opportunities. The security

analysis will help to establish what type of investment should be undertaken

among various alternatives i.e. ,Real Estate, Bonds, Debentures, Equity Shares,

Fixed Deposits, Gold,Jewellary etc.Neither all industries grow at same rate nor do

all companies. The growth rate of a company depends basically on its ability to

satisfy human desires through production of goods or performance is important to

analyse the national economy. It is very important to predict the course of

national economy because economic activity substantially affects corporate

profits, investor’s attitudes, expectations and ultimately security prices.

There are different cycles and causing for movements in the economy

such as “Boom, Depression, Recession” etc., The performance of the

economy depends basically on the monsoon and the growth rate of agriculture.

The most important factor is the “Fiscal Policy”, which incorporates government

expenditure, taxation, borrowing, deficit financing and which influences both

public and private sector in the economy. The industrial growth in general and of

infrastructural industries in particular influences the corporate performance.

The security analysis is to be made by the investor, before making an

investment decision. Such analysis will be useful to identity the potential

industry / company. The main object of investment of the investors is to minimize

the risk and maximize the return. For those purpose the investor has to scan

thoroughly the investment climate.

So the investors should analyse the security by taking consideration

into the following three types of fundamental study:-

1. Economic Analysis

2. Industry Analysis

3. Company Analysis.


43


INTRODUCTION TO THE RATIO ANANLYSIS


44


The relationship of these two figure expressed mathematically is called a

ratio. The ratio reefers to the numerical or quantities relationship between two

variables or times. A ratio is calculated by dividing one item of the relationship

with the other. The ratio analysis is one of the most useful and common methods

of analyzing financial statement. Ratio enables the mass of data to be

summarized and simplified. Ratio analysis is an instrument for diagnosis of the

financial health of an enterprise.

MEANING OF RATIO:-

A ratio is only a comparison of the numerator with the denominator. The

tern ratio reefers to the numerical or quantitative relationship between two figures

and obtained by dividing the former by the latter.

Ratio analysis is an important and age old technique of financial analysis.

The data given in financial statements ratio are relative form of financial data and

very useful techniques to cheek upon the efficiency of a firm. Some ratio

indicates the trend or progress or downfall of the firm.

IMPORTANCE OF RATIO:

Ratio analysis of firm’s financial statement is of interest to a number of

parties mainly. Shareholders, creditor, financial executives etc. shareholders are

interested with earning capacity of the firm: creditors are interested in knowing

the ability of firm to meet financial obligation and financial executives are

concerned with evolving analytical tools that will measures and compare costs,

efficiency liquidity and profitability with a view to making intelligent decisions.

A. BHEL


45


1. OPERATING PROFIT RATIO

YEAR PERCENTAGE

MAR’03 13.65

MAR’04 10.62

MAR’05 13.52

MAR’06 16.54

MAR’07 20.41

OPERATING PROFIT RATIO

10.62

13.52

20.41

13.6516.54

0

5

10

15

20

25

MAR’03 MAR’04 MAR’05 MAR’06 MAR’07

YEAR

PE

RC

EN

TA

GE

Operating profit ratios increasing with 49.52% from march’03 to march’07.

it shows that firm’s operating profit is growing. It also shows that firm’s cost of

operation is low and operating in very good situation. It reflects an efficient

management of a company. Firm’s position is good.

2. GROSS PROFIT RATIO

YEAR Rs. in cr.

MAR’03 11.01

MAR’04 8.16


46


MAR’05 11.25

MAR’06 14.71

MAR’0719.00

GROSS PROFIT RATIO

8.16

11.25

19

11.01

14.71

0

5

10

15

20


YEAR

PE

RC

EN

TA

GE

Gross profit ratio shows the relationship between gross profit and sales.

Here gross profit ratio increasing with 72.57% from year 03 to 07.it indicates that

firm’s selling is increasing .it also may continue to grow in future. It suggests that

selling price is competitive and earning good profit by selling larger volume. So it

shows that firm’s position is good.

3. NET PROFIT

YEAR Rs. in cr.

MAR’03 6.14

MAR’04 7.91

MAR’05 9.58


47


MAR’06 12.19

MAR’07 13.51

NET PROFIT

7.919.58

13.5112.19

6.14

0

2

4

6

8

10

12

14

16


YEAR

Rs.

in c

r.

Net profit ratio has been increased 120% from March 03 to March 07 and

increased 10.82% compare to previous year. So it indicates that net profit

increasing with high growth rate and also indicates that firm is able to survive in

the face of rising cost of production and falling prices. So it indicates firm is

running in very good position.

4. EARNING PER SHARE

YEAR Rs. per share

MAR’03 34.66

MAR’04 29.61

MAR’05 37.35

MAR’06 65.90

MAR’07 110.05


48


EARNING PER SHARE

29.6137.35

110.05

65.9

34.66

0

20

40

60

80

100

120


YEAR

Rs.

Per

Sh

are

Earning per share has been increased with 67%compare to previous year.

Here the portion of a company’s profit allocated to each out standing share of a

common stock is high and it is good for investors as the returns are high. So it


5. DIVIDEND PER SHARE

YEAR Rs. per share

MAR’03 4.00

MAR’04 6.00

MAR’05 8.00

MAR’06 14.50

MAR’07 24.50


49


DIVIDEND PER SHARE

68

24.5

14.5

4

0

5

10

15

20

25

30


YEAR

Rs.

Per

Sh

are

Dividend per share has been increased with 69% compare to previous

year. Here the portion of a company’s profit allocated to each out standing share

of a common stock is high and it is good for investors as the returns are high. So

it shows that firm’s position is good.

6. BOOK VALUE PER SHARE

YEAR Rs.

MAR’03 192.36

MAR’04 215.64

MAR’05 246.24

MAR’06 298.31

MAR’07 359.06


50


BOOK VALUE PER SHARE

215.64246.24

359.06

192.36

298.31

0

50

100

150

200

250

300

350

400


YEAR

Rs

.

Book value per share has been increased 87% from March 03 to March 07

and 20% from the previous year. So book value per share also increased. So it

indicates good sign for investors and shows good position of a firm.

7. CURRENT RATIO

YEAR PROPORTION

MAR’03 1.81

MAR’04 1.71

MAR’05 1.63

MAR’06 1.53

MAR’07 1.43


51


CURRENT RATIO

1.71 1.631.43

1.531.81

0

0.5

1

1.5

2


YEAR

PR

OP

OR

TIO

N

Current ratio is is 1.43 which is far from ideal criteria 2:1. it reflects that

company finds difficulty to meet short term obligation as a measure of current

financial liquidity.

8. QUICK RATIO

YEAR PROPORTION

MAR’03 1.29

MAR’04 1.28

MAR’05 1.22

MAR’06 1.17

MAR’07 1.13


52


QUICK RATIO

1.28

1.22

1.13

1.17

1.29

1.05

1.1

1.15

1.2

1.25

1.3

1.35


YEAR

PR

OP

OR

TIO

N

An ideal criterion to test liquidity of a firm is 1:1 and here quick ratio lies

near about this ratio in 2007. So it indicates that liquidity position of a firm is near

about satisfactory and we can also expect that in future this ratio will come near

to the ideal criteria.

9. INVENTORY TURNOVER RATIO

YEAR PROPORTION

MAR’03 24.84

MAR’04 25.20

MAR’05 23.33

MAR’06 24.09

MAR’07 28.67


53


INVENTORY TURNOVER RATIO

24.84 24.09

28.67

23.3325.2

0

5

10

15

20

25

30

35


YEAR

PR

OP

OR

TIO

N

ITOR of the company is increasing which shows decline in Inventory

holding period. It also reflects good sales policy which indicates good progress of

the company. So firm is in very good condition currently.

10. DEBT/EQUITY RATIO

YEAR PROPORTION

MAR’03 0.10

MAR’04 0.10

MAR’05 0.08

MAR’06 0.07

MAR’07 0.01


54


DEBT EQUITY RATIO

0.1

0.08

0.01

0.07

0.1

0

0.02

0.04

0.06

0.08

0.1

0.12


YEAR

PR

OP

OR

TIO

N

It is used to measure long-term solvency position of a concern. Here

debt/equity ratio is declining which is good for a company. It also shows that

company’s policies are sound.

11. DIVIDEND PAY OUT RATIO

YEAR PROPORTION

MAR’03 24.84

MAR’04 25.20

MAR’05 23.33

MAR’06 24.09

MAR’07 28.67


55


DIVIDEND PAY OUT RATIO

25.223.33

28.67

24.8424.09

0

5

10

15

20

25

30

35


YEAR

PR

OP

OR

TIO

N

Dividend pay out ratio has been increased by 19% which shows that

percentage of income has been issued to the owner at the end of the year. Here

it has been increasing with 19% that shows good returns for the investors. So

firm is able to meet investors expectation.

12. RETURN ON LONG TERM FUNDS RATIO

YEAR PERCENTAGE

MAR’03 18.93

MAR’04 16.03

MAR’05 21.22

MAR’06 29.35

MAR’07 42.84


56


RETURN ON LONGTERM FUNDS

21.22

42.84

16.03

18.9329.35

05

1015202530354045


YEAR

PE

RC

EN

TA

GE

Return on Long Term fund has been increased by 126.30%from March 03

to March 07and by 46% from the previous year. It shows that company is getting

high return on total capital employed or long term funds. It tells us that earning of

the company is very high which reflects firm is operating in very good condition.

YEAR PROPORTION

MAR’03 3.24

MAR’04 10.33

MAR’05 10.37

MAR’06 17.29

MAR’07 10.44


57


P/E RATIO

3.24

17.29

10.4410.3710.33

02468

10

1214161820

MAR' 03 MAR' 04 MAR' 05 MAR' 06 MAR' 07

YEAR

PR

OP

OR

TIO

N

Company’s price earning ratio has been decreased from the previous years

but increased compare to last 3 years so it shows that its market price compared

to earning per share is fair so it is good sign for the firm. So firm is operating in

good condition.

B. BEML


YEAR PERCENTAGE

MAR’03 4.40

MAR’04 4.90

MAR’05 16.50

MAR’06 13.79

MAR’07 13.42


58


OPRATING PROFIT RATIO

16.5

13.42

4.94.4

13.79

02468

1012141618


YEAR

PE

RC

EN

TA

GE

Operating profit ratios increasing with 205% from march’03 to march’07. it

shows that firm’s operating profit is growing. It also shows that firm’s cost of




YEAR PERCENTAGE

MAR’03 3.16

MAR’04 3.81

MAR’05 15.18

MAR’06 13.11

MAR’07 12.86


59


GROSS PROFIT RATIO

15.18

12.86

3.813.16

13.11

0

2

4

6

8

10

12

14

16


YEAR

PE

RC

EN

TA

GE






3. NET PROFIT

YEAR PERCENTAGE

MAR’03 1.65

MAR’04 1.42

MAR’05 9.92

MAR’06 8.90

MAR’07 8.27


60


NET PROFIT RATIO

1.42

9.92

8.27

1.65

8.9

0

2

4

6

8

10

12


YEAR

PE

RC

EN

TA

GE

Net profit ratio has been decreased by 16.63%March 05 to March 07 . So

it indicates that net profit decreasing which indicates that firm is not able to

survive in the face of rising cost of production and falling prices. So it indicates

firm is running in not so good position.


YEAR Rs.

MAR’03 21.29

MAR’04 19.50

MAR’05 57.03

MAR’06 55.58

MAR’07 65.34


61


EARNING PER SHARE

19.5

57.03

65.34

21.29

55.58

0

10

20

30

40

50

60

70


YEAR

Rs.

Earning per share has been increased with 17.56%compare to previous





YEAR Rs.

MAR’03 2.00

MAR’04 2.00

MAR’05 10.00

MAR’06 10.00

MAR’07 12.00


62


DIVIDEND PER SHARE

2

10

12

2

10

0

2

4

6

8

10

12

14


YEAR

Rs.

Dividend per share has been increased with 20% compare to previous





YEAR Rs.

MAR’03 2.00

MAR’04 2.00

MAR’05 10.00

MAR’06 10.00

MAR’07 12.00


63



10

12

22

10

0

2

4

6

8

10

12

14


YEAR

Rs

.

Book value per share has been increased 500% from march 03 to March

07 and 20% from the previous year. So book value per share also increased. So

it indicates good sign for investors and shows good position of a firm.

7. CURRENT RATIO

YEAR PERCENTAGE

MAR’03 1.33

MAR’04 1.39

MAR’05 1.48

MAR’06 1.59

MAR’07 1.71


64


CURRENT RATIO

1.391.48

1.71

1.33

1.59

00.20.40.60.8

11.21.41.61.8


YEAR

PR

OP

OR

TIO

N

Current ratio is 1.71 which is near about ideal criteria 2:1.it reflects that

company can easily able to meet short term obligation as a measure of current


8. QUICK RATIO

YEAR PERCENTAGE

MAR’03 0.71

MAR’04 0.89

MAR’05 1.00

MAR’06 1.05

MAR’07 1.10


65


QUICK RATIO

0.71

1.051.11

0.89

0

0.2

0.4

0.6

0.8

1

1.2


YEAR

PR

OP

OR

TIO

N

An ideal criterion to test liquidity of a firm is 1:1 and here quick ratio lies

near about this ratio in 2007. So it indicates that liquidity position of a firm is near

about satisfactory.


YEAR PROPORTION

MAR’03 2.29

MAR’04 3.15

MAR’05 3.06

MAR’06 3.49

MAR’07 3.66


66



3.06

3.66

3.15

2.29

3.49

0

0.5

1

1.5

2

2.5

3

3.5

4


YEAR

PR

OP

OR

TIO

N




10. DEBT EQUITY RATIO

YEAR PROPORTION

MAR’03 0.05

MAR’04 0.05

MAR’05 0.10

MAR’06 0.02

MAR’07 0.02


67


DEBT/EQUITY RATIO

0.1

0.02

0.050.05

0.02

0

0.02

0.04

0.06

0.08

0.1

0.12


YEAR

PR

OP

OR

TIO

N





YEAR PERCENTAGE

MAR’03 1.33

MAR’04 1.39

MAR’05 1.48

MAR’06 1.59

MAR’07 1.71


68



1.391.48

1.71

1.33

1.59

00.20.40.60.8

11.21.41.61.8


YEAR

PR

OP

OR

TIO

N

Dividend pay out ratio has been increased by 7.54% which shows that


it has been increasing with 7.54% that shows good returns for the investors. So

firm is able to meet investors expectation.

12. RETURN ON LONG TERM FUNDS

YEAR PERCENTAGE

MAR’03 12.10

MAR’04 13.01

MAR’05 39.40

MAR’06 33.37

MAR’07 33.46


69


RETURN ON LONG TERM FUNDS

39.4

33.46

13.0112.1

33.37

05

1015202530354045


YEAR

PE

RC

EN

TA

GE

Company’s return on long term funds has been increased with

126.30% from 03 to 07.it shows that company is getting high return on total

capital employed. It shows that firm is operating in very good condition.

13. P/E RATIO

YEAR PROPORTION

MAR’03 2.76

MAR’04 9.01

MAR’05 6.42

MAR’06 30.24

MAR’07 10.44


70


P/E RATIO

2.76

30.24

10.446.42

9.01

0

5

10

15

20

25

30

35


YEAR

PR

OP

OR

TIO

N

Company’s price earning ratio has been decreased from the previous

year so it shows that its market price compared to earning per share is low so it is

not good sign for the firm. So firm is not operating in very good condition.

C. SUZLON1. OPERATING PROFIT RATIO

YEAR PERCENTAGE

MAR’03 16.56

MAR’04 18.48

MAR’05 24.20

MAR’06 24.75

MAR’07 23.14


71



24.223.14

18.4816.56

24.75

0

5

10

15

20

25

30


YEAR

PE

RC

EN

TA

GE






YEAR PERCENTAGE

MAR’03 14.39

MAR’04 17.26

MAR’05 22.17

MAR’06 23.54

MAR’07 21.78


72


GROSS PROFIT RATIO

22.17 21.78

17.26

14.39

23.54

0

5

10

15

20

25


YEAR

PE

RC

EN

TA

GE






3. NET PROFIT RATIO

YEAR PERCENTAGE

MAR’03 12.50

MAR’04 18.14

MAR’05 18.62

MAR’06 21.28

MAR’07 19.41


73


NET PROFIT RATIO

18.14 18.62 19.41

12.5

21.28

0

5

10

15

20

25


YEAR

PE

RC

EN

TA

GE

Net profit ratio has been increased 55.28% from March 03 to March 07. So

it indicates that net profit increasing with high growth rate and also indicates that

firm is able to survive in the face of rising cost of production and falling prices. So

it indicates firm is running in very good position.


YEAR Rs.

MAR’03 43.44

MAR’04 53.22

MAR’05 47.29

MAR’06 30.16

MAR’07 40.20


74


EARNING PER SHARE

53.2247.29

40.243.44

30.16

0

10

20

30

40

50

60


YEAR

Rs

.






YEAR Rs.

MAR’03 5.00

MAR’04 10.00

MAR’05 4.00

MAR’06 5.00

MAR’07 5.00


75


DIVIDEND PER SHARE

10

455

5

0

2

4

6

8

10

12


YEAR

Rs

.

Dividend per share has been remained same compare to previous year.


common stock is good and it is good for investors as the returns are given. So it

shows that firm’s position is stable.


YEAR Rs.

MAR’03 232.88

MAR’04 165.01

MAR’05 93.71

MAR’06 97.63

MAR’07 129.04


76



93.71129.04

165.01

232.88

97.63

0

50

100

150

200

250


YEAR

Rs

.

Book value per share has been decreased 44.60% from March 03 to

March 07. So book value per share also decreased. So it indicates bad sign for

investors and shows not so good position of a firm.

7. CURRENT RATIO

YEAR PERCENTAGE

MAR’03 2.23

MAR’04 2.13

MAR’05 2.32

MAR’06 2.98

MAR’07 3.37


77


CURRENT RATIO

2.132.32

3.37

2.23

2.98

0

0.5

1

1.5

2

2.5

3

3.5

4


YEAR

PE

RC

EN

TA

GE

ideal criteria is 2:1 and here it reflects that company finds difficulty to meet

short term obligation as a measure of current financial liquidity.

8. QUICK RATIO

YEAR PERCENTAGE

MAR’03 1.87

MAR’04 1.57

MAR’05 1.59

MAR’06 2.05

MAR’07 2.40


78


QUICK RATIO

1.57 1.59

2.4

1.872.05

0

0.5

1

1.5

2

2.5

3


YEAR

PE

RC

EN

TA

GE

An ideal criterion to test liquidity of a firm is 1:1 and here quick ratio lies far

from this ratio in 2007. So it indicates that liquidity position of a firm is far from

satisfactory. so it’s find difficulty in liquidity.

9. INVENTIRY TURNOVER RATIO

YEAR PROPORTION

MAR’03 3.96

MAR’04 3.94

MAR’05 3.96

MAR’06 3.56

MAR’07 3.96


79



3.96 3.963.943.96

3.56

3.3

3.4

3.5

3.6

3.7

3.8

3.9

4


YEAR

PR

OP

OR

TIO

N





YEAR PROPORTION

MAR’03 0.31

MAR’04 0.58

MAR’05 0.53

MAR’06 0.12

MAR’07 0.30


80


DEBT/EQUITY RATIO

0.580.53

0.30.31

0.12

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7


YEAR

PR

OP

OR

TIO

N


debt/equity ratio is declining compare to last 3 years which is good for a

company. It also shows that company’s policies are sound.


YEAR PERCENTAGE

MAR’03 16.18

MAR’04 18.87

MAR’05 11.01

MAR’06 20.02

MAR’07 15.50


81



18.87

11.01

15.516.18

20.02

0

5

10

15

20

25


YEAR

PR

OP

OR

TIO

N

Dividend pay out ratio has been decreased by 22.57% which shows that


it has been decreasing with 22.57% that shows decline in returns for the

investors. So firm is not able to meet investors expectation.

12. RETURN ON LONGTERM FUND RATIO

YEAR PERCENTAGE

MAR’03 16.75

MAR’04 28.58

MAR’05 43.24

MAR’06 31.89

MAR’07 32.63


82


RETURNE ON LONG TERM FUNDS

28.58

43.24

32.63

16.75

31.89

0

10

20

30

40

50


YEAR

PE

RC

EN

TA

GE

Company’s return on long term funds has been increased with

94.80% from 03 to 07.it shows that company is getting high return on total capital

employed. It shows that firm is operating in very good condition.

13. P/E RATIO

YEAR PROPORTION

MAR’03 0.06

MAR’04 0.09

MAR’05 0.47

MAR’06 3.32

MAR’07 5.85


83


P/E RATIO

0.06

3.32

5.85

0.470.09

0

1

2

3

4

5

6

7


YEAR

PR

OP

OR

TIO

N

Company’s price earning ratio has been increased from the previous

years so it shows that its market price compared to earning per share is high so it

is good sign for the firm. So firm is operating in very good condition.

D. PRAJ INDUSTRIES


YEAR PERCENTAGE

MAR’03 9.42

MAR’04 11.25

MAR’05 12.83

MAR’06 13.58


84


MAR’07 18.20


12.83

18.2

11.259.42

13.58

0

5

10

15

20


YEAR

PE

RC

EN

TA

GE






YEAR PERCENTAGE

MAR’03 7.60

MAR’04 9.77

MAR’05 11.99

MAR’06 12.56

MAR’07 17.67


85


GROSS PROFIT RATIO

11.99

17.67

9.77

7.6

12.56

0

5

10

15

20


YEAR

PE

RC

EN

TA

GE






3. NET PROFIT RATIO

YEAR PERCENTAGE

MAR’03 2.72

MAR’04 7.50

MAR’05 9.34

MAR’06 9.28

MAR’07 14.46


86


NET PROFIT RATIO

9.34

14.46

7.5

2.72

9.28

02

468

10121416


YEAR

PE

RC

EN

TA

GE

Net profit ratio has been increased 431.61% from March 03 to March 07

and increased 55.82% compare to previous year. So it indicates that net profit





YEAR Rs.

MAR’03 6.04

MAR’04 12.01

MAR’05 28.69

MAR’06 3.24

MAR’07 10.33


87


EARNING PER SHARE

28.69

10.3312.01

6.043.24

0

5

10

15

20

25

30

35


YEAR

Rs

.



of a common stock is average and it is good for investors as the returns are high.

So it shows that firm’s position is good.


YEAR Rs.

MAR’03 0.00

MAR’04 4.50

MAR’05 10.80

MAR’06 1.26

MAR’07 2.70


88


DIVIDEND PER SHARE

10.8

2.7

4.5

01.26

0

2

4

6

8

10

12


YEAR

Rs

.

Dividend per share has been increased with 114.28% compare to previous





YEAR Rs.

MAR’03 32.52

MAR’04 37.47

MAR’05 52.02

MAR’06 6.77

MAR’07 17.67


89



52.02

17.67

37.4732.52

6.77

0

10

20

30

40

50

60


YEAR

Rs.

Book value per share has been decreased by 45.66% from march 03 to

March 07. So book value per share also decreased. So it indicates bad sign for


7. CURRENT RATIO

YEAR PROPORTION

MAR’03 1.43

MAR’04 1.34

MAR’05 1.11

MAR’06 0.91

MAR’07 0.83


90


CURRENT RATIO

1.11

0.83

1.341.43

0.91

0

0.5

1

1.5

2


YEAR

PR

OP

OR

TIO

N

Current ratio is 0.83 which is far from ideal criteria 2:1 it reflects that company

finds difficulty to meet short term obligation as a measure of current financial

liquidity.

8. QUICK RATIO

YEAR PROPORTION

MAR’03 1.08

MAR’04 1.18

MAR’05 0.72

MAR’06 0.69

MAR’07 0.54


91


QUICK RATIO

0.72

0.54

1.181.08

0.69

00.20.40.60.8

11.21.4


YEAR

PR

OP

OR

TIO

N

An ideal criterion to test liquidity of a firm is 1:1 and here quick ratio lies far

from this ratio in 2007. So it indicates that liquidity position of a firm is far from

satisfactory.

9. INVENTORY TURNOVR RATIO

YEAR PROPORTION

MAR’03 6.98

MAR’04 15.35

MAR’05 6.86

MAR’06 8.82

MAR’07 5.12


92



6.865.12

15.35

6.98 8.82

0

5

10

15

20


YEAR

PR

OP

OR

TIO

N

Company’s ITOR is decreasing it means that inventory holding period is

increases .it means that firm is not able to manage proper inventory control

which is not good sign for company.

10.DEBT/EQUITY RATIO

YEAR Rs.

MAR’03 0.32

MAR’04 0.15

MAR’05 0.00

MAR’06 0.00

MAR’07 0.00


93


DEBT/EQUITY RATIO

0 0

0.15

0.32

00

0.050.1

0.150.2

0.250.3

0.35


YEAR

PR

OP

OR

TIO

N





YEAR Rs.

MAR’03 0.00

MAR’04 50.59

MAR’05 45.78

MAR’06 47.73

MAR’07 29.81


94


DIVIDEND PAYOUT RATIO

45.78

29.81

50.59

0

47.73

0

10

20

30

40

50

60


YEAR

PR

OP

OR

TIO

N



it has been decreasing with 37.54% that shows not so good returns for the

investors. So firm is not able to meet investors expectation.

12. RETURN ON LONGTERM FUNDS

YEAR Rs.

MAR’03 28.36

MAR’04 41.22

MAR’05 70.11

MAR’06 62.08

MAR’07 74.52


95


RETURN ON LONG TERM FUNDS

70.11 74.52

41.22

28.36

62.08

0

20

40

60

80


YEAR

PR

OP

OR

TIO

N

Return on Long Term fund has been increased by 162.76%from March 03




13. P/E RATIO

YEAR PROPORTION

MAR’03 0.36

MAR’04 0.41

MAR’05 0.75

MAR’06 23.35

MAR’07 18.56


96


P/E RATIO

0.36

23.35

18.56

0.750.41

0

5

10

15

20

25


YEAR

PR

OP

OR

TIO

N

Company’s price earning ratio has been decreased from the previous

years but increased compare to last 3 years so it shows that its market price

compared to earning per share is fair so it is good sign for the firm. So firm is

operating in good condition.

E. ELECON


YEAR PERCENTAGE

MAR’03 9.58

MAR’04 12.55

MAR’05 15.50

MAR’06 15.10

MAR’07 16.71


97



15.5 16.71

12.55

9.58

15.1

0

5

10

15

20


YEAR

PE

RC

EN

TA

GE






YEAR PERCENTAGE

MAR’03 4.46

MAR’04 7.63

MAR’05 12.48

MAR’06 13.03

MAR’07 15.01


98


GROSS PROFIT RATIO

12.4815.01

7.63

4.46

13.03

0

5

10

15

20


YEAR

PE

RC

EN

TA

GE






3. NET PROFIT RATIO

YEAR PERCENTAGE

MAR’03 1.08

MAR’04 1.34

MAR’05 3.65

MAR’06 6.00

MAR’07 7.57


99


NET PROFIT RATIO

1.08

6

7.57

3.65

1.34

0

1

2

3

4

5

6

7

8


YEAR

PE

RC

EN

TA

GE

Net profit ratio has been increased 600% from March 03 to March 07 and

increased 24.07% compare to previous year. So it indicates that net profit





YEAR Rs.

MAR’03 17.56

MAR’04 23.42

MAR’05 43.35

MAR’06 79.20

MAR’07 22.84


100


EARNING PER SHARE

43.35

22.8423.4217.56

79.2

0

20

40

60

80

100


YEAR

Rs.

Earning per share has been decreased by71.16%compare to previous


of a common stock is low and it is not good for investors as the returns are low.

So it shows that firm’s position is not so good.


YEAR Rs.

MAR’03 0.00

MAR’04 1.00

MAR’05 2.50

MAR’06 5.00

MAR’07 1.50


101


DIVIDEND PER SHARE

2.5

1.51

0

5

0

1

2

3

4

5

6


YEAR

Rs

.

Dividend per share has been decreased with 70% compare to previous year.


common stock is low and it is not good for investors as the returns are low. So it

shows that firm’s position is not good.


YEAR Rs.

MAR’03 91.85

MAR’04 100.81

MAR’05 120.92

MAR’06 175.84

MAR’07 60.62


102



120.92

60.62

100.8191.85

175.84

0

50

100

150

200


YEAR

Rs

.

Book value per share has been decreased 34% from march 03 to March

07. So book value per share also decreased. So it indicates bad sign for


7. CURRENT RATIO

YEAR PROPORTION

MAR’03 1.73

MAR’04 1.66

MAR’05 1.57

MAR’06 1.89

MAR’07 2.23


103


CURRENT RATIO

1.57

2.23

1.661.73 1.89

0

0.5

1

1.5

2

2.5


YEAR

PR

OP

OR

TIO

N

Current ratio 2.23 which is near about ideal criteria 2:1 . It reflects

that company can easily able to meet short term obligation as a measure of current


8. QUICK RATIO

YEAR PROPORTION

MAR’03 1.09

MAR’04 0.81

MAR’05 0.86

MAR’06 1.18

MAR’07 1.61


104


QUICK RATIO

0.86

1.61

0.811.09 1.18

0

0.5

1

1.5

2


YEAR

PR

OP

OR

TIO

N

An ideal criterion to test liquidity of a firm is 1:1 and here quick ratio lies far from

this ratio in 2007. So it indicates that liquidity position of a firm is far from

satisfactory.


YEAR PROPORTION

MAR’03 3.34

MAR’04 1.75

MAR’05 2.43

MAR’06 3.25

MAR’07 5.20


105



2.43

5.2

1.75

3.343.25

0

1

2

3

4

5

6


YEAR

PR

OP

OR

TIO

N





YEAR PROPORTION

MAR’03 0.89

MAR’04 1.06

MAR’05 1.31

MAR’06 2.00

MAR’07 1.51


106


DEBT/EQUITY RATIO

1.31 1.51

1.060.89

2

0

0.5

1

1.5

2

2.5


YEAR

PR

OP

OR

TIO

N




11. DIVIDEND PAYOUT RATIO

YEAR PROPORTION

MAR’03 0.00

MAR’04 29.36

MAR’05 16.03

MAR’06 12.53

MAR’07 9.88


107


DIVIDEND PAYOUT RATIO

16.03

9.88

29.36

0

12.53

05

101520253035


YEAR

PR

OP

OR

TIO

N



it has been decreasing with 21.15% that shows not so good returns for the

investors. So firm is failed to meet investors expectation.

12. RETURN ON LONGTERM FUNDS

YEAR PERCENTAGE

MAR’03 9.70

MAR’04 12.89

MAR’05 32.51

MAR’06 36.00

MAR’07 43.44


108


RETURN ON LONGTERM RATIO

32.51

43.44

12.899.7

36

0

10

20

30

40

50


YEAR

PE

RC

EN

TAG

E

Return on Long Term fund has been increased by 347.84% from March 03




13. P/E RATIO

YEAR PROPORTION

MAR’03 0.03

MAR’04 0.08

MAR’05 0.26

MAR’06 1.20

MAR’07 5.76


109


P/E RATIO

0.03

1.2

5.76

0.260.08

0

1

2

3

4

5

6

7


YEAR

PR

OP

OR

TIO

N

Company’s price earning ratio has been increased from the

previous years so it shows that its market price compared to earning per share is

high so it is good sign for the firm. So firm is operating in very good condition.

COMPARISION OF RATIOS

1. OPERATING PROFIT MARGIN:

COMPANY NAME MAR’07

BHEL 20.41

BEML 13.42

SUZLON 23.14

PRAJ IND. 18.20


110


ELECON 16.71

OPERATING PROFIT MARGIN (MAR'07)

20.41

13.42

23.14

18.216.71

0

5

10

15

20

25

BHEL BEML SUZLON PRAJ IND. ELECON

COMPANY NAME

PE

RC

EN

TA

GE

2. GROSS PROFIT MARGIN:


BHEL 19.00

BEML 12.86

SUZLON 21.78

PRAJ IND. 17.67

ELECON 15.01


111


GROSS PROFIT MARGIN (MAR'07)

19

12.86

21.78

17.6715.01

0

5

10

15

20

25


COMPANY NAME

PE

RC

EN

TA

GE

3. NET PROFIT MARGIN:


BHEL 13.51

BEML 8.27

SUZLON 19.41

PRAJ IND. 14.46

ELECON 7.57


112


NET PROFIT MARGIN (MAR'07)

13.51

8.27

19.41

14.46

7.57

0

5

10

15

20

25


COMPANY NAME

PE

RC

EN

TA

GE

4. ADJUSTED CASH EPS:


BHEL 110.05

BEML 65.34

SUZLON 40.20

PRAJ IND. 10.33

ELECON 22.84


113


ADJUSTED CASH EPS (MAR'07)

110.05

65.34

40.2

10.3322.84

0

20

40

60

80

100

120


COMPANY NAME

RS

.

5. DIVIDEND PER SHARE (DPS):


BHEL 24.50

BEML 12.00

SUZLON 5.00

PRAJ IND. 2.70

ELECON 1.50


114


DPS (MAR'07)

24.5

12

52.7 1.5

0

5

10

15

20

25

30


COMPANY NAME

RS

.

6. BOOK VALUE PER SHARE :


BHEL 359.06

BEML 276.12

SUZLON 129.04

PRAJ IND. 17.67

ELECON 60.62


115


BOOK VALUE PER SHARE (MAR'07)

359.06

276.12

129.04

17.6760.62

0

50

100

150

200

250

300

350

400


COMPANY NAME

RS

.

7. CURRENT RATIO:


BHEL 1.43

BEML 1.71

SUZLON 3.37

PRAJ IND. 0.83

ELECON 2.23


116


CURRENT RATIO (MAR'07)

1.431.71

3.37

0.83

2.23

0

0.5

1

1.5

2

2.5

3

3.5

4


COMPANY NAME

PR

OP

OR

TIO

N

8. QUICK RATIO:


BHEL 1.13

BEML 1.10

SUZLON 2.41

PRAJ IND. 0.54

ELECON 1.61


117


QUICK RATIO (MAR'07)

1.13 1.1

2.41

0.54

1.61

0

0.5

1

1.5

2

2.5

3


COMPANY NAME

PR

OP

OR

TIO

N

9. INVENTORY TURN OVER RATIO:


BHEL 4.64

BEML 3.66

SUZLON 3.96

PRAJ IND. 5.12

ELECON 5.20


118


INVENTORY TURN OVER RATIO (MAR'07)

4.64

3.663.96

5.12 5.2

0

1

2

3

4

5

6


COMPANY NAME

PR

OP

OR

TIO

N

10.LONG TERM DEBT / EQUITY RATIO:


BHEL 0.01

BEML 0.02

SUZLON 0.03

PRAJ IND. 0.00

ELECON 0.37


119


LONG TERM DEBT/ EQUITY RATIO (MAR'07)

0.01 0.02 0.030

0.37

00.050.1

0.150.2

0.250.3

0.350.4

BHEL BEML SUZLON PRAJIND.

ELECON

COMPANY NAME

PR

OP

OR

TIO

N

11.RETURN ON LONG TERM RATIO:


BHEL 42.84

BEML 33.46

SUZLON 32.63

PRAJ IND. 74.52

ELECON 43.44


120


RETURN ON LONG TERM RATIO (MAR'07)

42.84

33.46 32.63

74.52

43.44

0

10

20

30

40

50

60

70

80


COMPANY NAME

PR

OP

OR

TIO

N

12.DIVIDEND PAY OUT RATIO:


BHEL 28.67

BEML 24.96

SUZLON 15.50

PRAJ IND. 29.81

ELECON 9.88


121


DIVIDEND PAY OUT RATIO (MAR'07)

28.6724.96

15.5

29.81

9.88

0

5

10

15

20

25

30

35


COMPANY NAME

PR

OP

OR

TIO

N

13. P/E RATIO


BHEL 10.44

BEML 10.80

SUZLON 5.85

PRAJ IND. 18.56

ELECON 5.76


122


P/E RATIO

5.76

18.56

5.85

10.810.44

02468

10

1214161820


YEAR

PR

OP

OR

TIO

N

RANKING TO THE RATIOS.

CRITEREIA OF RANKING: - 1. VERY GOOD 2. GOOD 3. FAIR 4. BAD 5. WORST

RATIO NAME BHEL BEML SUZLONPRAJ IND. ELECON

1.OPERATING PROFIT RATIO 2 5 1 3 4


123


2.GROSS PROFIT RATIO 2 5 1 3 4

3.NET PROFIT RATIO 3 4 1 2 5

4.EARNING PER SHARE 1 2 3 5 4

5.DIVIDEND PER SHARE 1 2 3 4 5

6.BOOK VALUE PER SHARE 1 2 3 5 4

7.CURRENT RATIO 3 2 5 4 1

8.QUICK RATIO 2 1 5 3 49.INVENTORY TURNOVER RATIO 3 5 4 2 1

10.DEBT/EQUIYT RATIO 2 3 4 1 511.DIVIDEND PAY OUT RATIO 2 3 4 1 512.RETURN ON LONGTERM FUNDS 3 4 5 1 2

P/E RATIO 3 2 4 1 5

TOTAL 28 40 43 35 49

FINDINGS:- Suzlon’s profit is highest compare to other companies. Even BHEL also

have very good profit earned during 2007 so the both the companies

having good condition as far as profit is concerned.

BHEL and BEML both have good earning per share so both indicates

good sign for investors while other companies have not so good condition

compare to above mentioned companies.

BHEL has declared highest dividend and BEML has declared little less

amount to the share holders. So both the firm are operating in very good

condition and both are good to invest money from the investor’s point of

view.

Elecon’s liquidity is very good and it is able to meet short-term obligation,

BEML has also very good condition so far as liquidity is concerned. so it

reflects that both firm’s position is good.

BHEL and BEML have good financial liquidity. so both are able to meet

their current financial requirement.


124


Elecon and Praj Industries both having high ITOR so it indicates both

having less inventory holding period so it indicates efficient management

of a company.

PRAJ and BHEL have declared maximum dividend to the share holders so

both are good to invest.

PRAJ and ELECON have earned maximum returns on the total capital

employed. So it shows that they are in very good position.

PRAJ and BEML‘s P/E ratio is high so it shows good earning and in very

good position.

OVERALL CONCLUSION

BHEL got 28 as a total of rank which is least compare to other companies,

so BHEL shows good position of most of the ratios which is good sign for

the company and will enjoy rapid growth. BHEL has more numbers of

strong point rather than weak points.

Where BEML got 40 as a total of ranking given so it has also well

Position of ratios so it reflects that firm is growing and shows good position

PRAJ got 35 as a total of ranking given its earning is very high and

dividend paid is also very high so it indicates good sign for the company,

and investors to invest.

Remaining two are not in good condition because position of the ratios are

not good.


125



126


TREND ANALYSIS

A. NET SALES

1) BHEL

YEAR NET SALES (Rs. In cr.) PERCENTAGE (%)Mar ' 03 7703.74 100Mar ' 04 8771.51 113.86Mar ' 05 10686.07 138.71Mar ' 06 14587.29 189.35Mar ' 07 18838.52 244.54

NET SALES

244.54

189.35

138.71113.86

100

0

50

100

150

200

250

300

Mar ' 03 Mar ' 04 Mar ' 05 Mar ' 06 Mar ' 07

YEAR

PE

RC

EN

TA

GE

(%)

2) BEML

YEAR NET SALES (Rs. In cr.) PERCENTAGE (%)Mar ' 03 1681.17 100Mar ' 04 1765.75 105.03Mar ' 05 1856.01 110.40Mar ' 06 2201.65 130.96Mar ' 07 2601.79 154.76


127


NET SALES

154.76

130.96

110.40105.03100

50

70

90

110

130

150

170


YEAR

PE

RC

EN

TA

GE

(%)

3) SUZLONYEAR NET SALES (Rs. In Cr.) PERCENTAGE (%)

Mar ' 03 1134 100Mar ' 04 1254.78 158.72Mar ' 05 1917.5 242.55Mar ' 06 3788.46 479.21Mar ' 07 5380.37 680.58

NET SALES

100 110.65

169.09

334.08

474.46

50100150200250

300350400450500

Mar ' 03 Mar ' 04 158.7204007 242.5495851 479.212204

YEAR

PE

RC

EN

TA

GE

(%)

4) PRAJ IND.YEAR NET SALES (Rs. In cr.) PERCENTAGE

Mar ' 03 88.16 100Mar ' 04 106.52 120.83Mar ' 05 233.17 264.49Mar ' 06 267.5 303.43Mar ' 07 607.48 689.07


128


NET SALES

100 120.83

264.49 303.43

689.07

50

150

250

350

450

550

650

750


YEAR

PE

RC

EN

TA

GE

(%)

5) ELECON

YEAR NET SALES (Rs. In Cr.) PERCENTAGEMar ' 03 157.69 100Mar ' 04 160.82 101.98Mar ' 05 277.72 176.12Mar ' 06 442.48 280.60Mar ' 07 723.11 458.56

NET SALES

100 101.98

176.12

280.60

458.56

50100150200250

300350400450500


YEAR

PE

RC

EN

TA

GE

(%)


129


B. NET PROFIT1. BHEL

YEAR NET PROFIT (Rs. In cr.) PERCENTAGEMar ' 03 517.06 100Mar ' 04 658.15 127.29Mar ' 05 1003.75 194.13Mar ' 06 1679.16 324.75Mar ' 07 2414.7 467.01

NET PROFIT

100127.29

194.13

324.75

467.01

50100150200250

300350400450500


YEAR

PE

RC

EN

TA

GE

(%)

2. BEMLYEAR NET PROFIT (Rs. In cr.) PERCENTAGE


NET PROFIT

100 92.00

671.64 702.64785.17

-1090

190290390

490590690790890


YEAR

PE

RC

EN

TAG

E(%

)


130


3. SUZLONYEAR NET PROFIT (Rs. In cr.) PERCENTAGE


NET PROFIT

100 106.93 111.42

253.13

327.10

-10

40

90

140

190

240

290

340

390


YEAR

PE

RC

EN

TA

GE

(%)

4. PRAJ IND.

YEAR NET PROFIT (Rs. In cr.) PERCENTAGEMar ' 03 2.31 100Mar ' 04 8 346.32Mar ' 05 22.82 987.88Mar ' 06 24.9 1077.92Mar ' 07 86.53 3745.89

NET PROFIT

100346.32

987.88 1077.92

3745.89

-10

490

990

1490

1990

2490

2990

3490

3990


YEAR

PE

RC

EN

TA

GE

(%)

5. PRAJ IND.


131


YEAR NET PROFIT (Rs. In cr.) PERCENTAGEMar ' 03 1.74 100Mar ' 04 2.17 124.71Mar ' 05 10.04 577.01Mar ' 06 27.88 1602.30Mar ' 07 54.9 3155.17

NET PROFIT

100 124.71

577.01

1602.30

3155.17

-10

490

990

1490

1990

2490

2990

3490


YEAR

PE

RC

EN

TA

GE

(%)

C. DIVIDEND PER SHARE1. BHEL

YEAR DPS(Rs. per share) PERCENTAGEMar ' 03 4 100Mar ' 04 6 150.00Mar ' 05 8 200.00Mar ' 06 14.5 362.50Mar ' 07 24.5 612.50

DIVIDEND PER SHARE

100150.00

200.00

362.50

612.50

-10

90

190

290

390

490

590

690


YEAR

PE

RC

EN

TA

GE

(%)

2. BEMLYEAR DPS(Rs. per share) PERCENTAGE


132


Mar ' 03 2 100Mar ' 04 2 100.00Mar ' 05 10 500.00Mar ' 06 10 500.00Mar ' 07 12 600.00

DIVIDEND PER SHARE

100 100.00

500.00 500.00

600.00

-10

90

190

290

390

490

590

690


YEAR

PE

RC

EN

TA

GE

(%)

3. SUZLON

YEAR DPS(Rs. per share) PERCENTAGEMar ' 03 5 100Mar ' 04 10 200.00Mar ' 05 4 80.00Mar ' 06 5 100.00Mar ' 07 5 100.00

DIVIDEND PER SHARE

100

200.00

80.00100.00 100.00

-10

40

90

140

190

240


YEAR

PE

RC

EN

TA

GE

(%)

4. PRAJ IND.


133


YEAR DPS(Rs. per share) PERCENTAGEMar ' 03 0 0Mar ' 04 4.5 100.00Mar ' 05 10.8 240.00Mar ' 06 1.26 28.00Mar ' 07 2.7 60.00

DIVIDEND PER SHARE

0

100.00

240.00

28.0060.00

-10

40

90

140

190

240

290


YEAR

PE

RC

EN

TA

GE

(%)

5. ELECONYEAR DPS(Rs. per share) PERCENTAGE

Mar ' 03 0 0Mar ' 04 1 100.00Mar ' 05 2.5 250.00Mar ' 06 5 500.00Mar ' 07 1.5 150.00

DIVIDEND PER SHARE

0

100.00

250.00

500.00

150.00

0

100

200

300

400

500

600


YEAR

PE

RC

EN

TA

GE

(%)

D. PROFIT BEFORE TAX1 BHEL


134


YEAR PBT (Rs. in cr.) PERCENTAGEMar ' 03 862.83 100Mar ' 04 802.43 93.00Mar ' 05 1014.75 117.61Mar ' 06 1581.64 183.31Mar ' 07 3736.07 433.00

PROFIT BEFORE TAX

100 93.00 117.61

183.31

433.00

050

100150200250300350400450500


YEAR

PE

RC

EN

TA

GE

(%)

2 BEMLYEAR PBT (Rs. in cr.) PERCENTAGE


PROFIT BEFORE TAX

100291.08 385.70

2096.852429.21

0

500

1000

1500

2000

2500

3000


YEAR

PE

RC

EN

TA

GE

(%)

3 SUZLONYEAR PBT (Rs. in cr.) PERCENTAGE

Mar ' 03 30.56 100


135


Mar ' 04 45.56 149.08Mar ' 05 122.03 399.31Mar ' 06 392.45 1284.20Mar ' 07 1119.58 3663.55

PROFIT BEFORE TAX

100 149.08399.31

1284.20

3663.55

0

500

1000

1500

2000

2500

3000

3500

4000


YEAR

PE

RC

EN

TA

GE

(%)

4 PRAJ IND

YEAR PBT (Rs. in cr.) PERCENTAGEMar ' 03 1.19 100Mar ' 04 4.74 398.32Mar ' 05 10.76 904.20Mar ' 06 27.91 2345.38Mar ' 07 110.37 9274.79

PROFIT BEFORE TAX

100 398.32 904.20

2345.38

9274.79

0100020003000400050006000700080009000

10000


YEAR

PE

RC

EN

TA

GE

(%)

5 ELECONYEAR PBT (Rs. in cr.) PERCENTAGE

Mar ' 03 5.23 100Mar ' 04 8.24 157.55


136


Mar ' 05 12.28 234.80Mar ' 06 32.32 617.97Mar ' 07 103.92 1987.00

PROFIT BEFORE TAX

100 157.55 234.80

617.97

1987.00

0

500

1000

1500

2000

2500


YEAR

PE

RC

EN

TA

GE

(%)

5. MARKET PRICE PER SHAREA. BHEL

YEAR MARKET PRICE PRE SHARE (IN Rs.) PERCENTAGE (%)Mar ' 03 112.45 100Mar ' 04 306 272.12Mar ' 05 387.45 344.55Mar ' 06 1140 1013.78Mar ' 07 1149 1021.79

MARKET PRICE PER SHARE

100

272.12344.55

1013.78 1021.79

0

200

400

600

800

1000

1200


YEAR

PE

RC

EN

TA

GE

(%)

B.BEML

YEAR MARKET PRICE PRE SHARE(IN Rs.) PERCENTAGEMar ' 03 58.75 100


137


Mar ' 04 175.8 299.23Mar ' 05 366 622.98Mar ' 06 1725 2936.17Mar ' 07 1098 1868.94


100299.23

622.98

2936.17

1868.94

0

500

1000

1500

2000

2500

3000

3500


YEAR

PE

RC

EN

TA

GE

(%)

C. PRAJ INDUSTRIES

YEAR MARKET PRICE PRE SHARE(IN Rs.) PERCENTAGEMar ' 03 2.2 100Mar ' 04 4.98 226.36Mar ' 05 21.49 976.82Mar ' 06 75.65 3438.64Mar ' 07 191.75 8715.91


100 226.36976.82

3438.64

8715.91

0100020003000400050006000700080009000

10000


YEAR

PE

RC

EN

TA

GE

(%)

D. SUZLONYEAR MARKET PRICE PRE SHARE(IN Rs.) PERCENTAGE

Mar ' 03 2.40 100Mar ' 04 5.00 208.33


138


Mar ' 05 22.30 929.17Mar ' 06 100.00 4166.67Mar ' 07 235.00 9791.67


100 208.33929.17

4166.67

9791.67

0

2000

4000

6000

8000

10000

12000


YEAR

PE

RC

EN

TA

GE

(%)

E.ELECONYEAR MARKET PRICE PRE SHARE(IN Rs.) PERCENTAGE



100 355.772201.92

18305.77

25317.31

0

5000

10000

15000

20000

25000

30000


YEAR

PE

RC

EN

TAG

E(%

)


139



140


VALUATION OF SECURITIES

A. BHEL

YEAR DIVIDEND PER SHARE (Rs.) GROWTH RATE (%)MAR'03 4 0MAR'04 6 50%MAR'05 8 33.33%MAR'06 14.5 81.25%MAR'07 24.5 68.96% TOTAL 233.54%

AVERAGE ANNUAL GROWTH RATE (g) = 233.54/4

=58.5%

= 59%

D1= D0 (1+g) P1= (2925+970) / 2 Ke = (D1/P1) +g

= 24.5 (1+0.59) =1947.5 = (39/1948) +0.59

= 24.5 (1.59) =1948 Rs. = 0.61%

= 38.95

= 39 Rs.

P0=D1/ (Ke –g)

= 39/ (0.61– 0.59)

= 39/ 0.02

= 1950 Rs.

CURRENT MARKET PRICE (C0) = 2239 Rs.

Where,

D1= Expected dividend of next year

P1= Average of 52 weeks high- low

Ke= Investors Require Rate of Return

P0= Expected price of Share

Current market price (C0) of the share is higher than Expected price of

Share (P0).Here share price is overvalued so investors are advised not to buy the

share of the company


141


B. BEML

YEAR DIVIDEND PER SHARE (Rs.) GROWTH RATE (%)MAR'03 2 0%MAR'04 2 0%MAR'05 10 400.00%MAR'06 10 0.00%MAR'07 12 20.00% TOTAL 420.00%

AVERAGE ANNUAL GROWTH RATE (g) =420/4

=105%

D1= D0 (1+g) P1= (1850+938) /2 Ke = (D1/P1) +g

= 12 (1+1.05) =1394 Rs. = (24.6/1394) +1.05

= 12 (2.05) . = 1.068 %

= 24.6 Rs.

P0=D1/ (Ke –g)

= 24.6/ (1.068– 1.050)

= 24.6/ 0.018

= 1366.66 Rs.

CURRENT MARKET PRICE (C0) = 1239.90 Rs.

Where,





Current market price (C0) of the share is lower than Expected price of

Share (P0).Here share price is undervalued so investors are advised to buy the

share of the company.


142


C. PRAJ INDUSTRIES

YEAR DIVIDEND PER SHARE (Rs.) GROWTH RATE (%)MAR'03 0 0%MAR'04 4.5 450%MAR'05 2.16 –52.00%MAR'06 1.26 –42.00%MAR'07 2.7 114.29%

TOTAL 470.29%

AVERAGE ANNUAL GROWTH RATE (g) =470.29/4

=117.57%

D1= D0 (1+g) P1= (273.45+114)/2 Ke = (D1/P1) +g

= 2.70 (1+1.17) =193.73 Rs. = (5.86/193.73) +1.17

= 2.70 (2.17) . = 1.20%

= 5.86 Rs.

P0=D1/ (Ke –g)

= 5.86/ (1.20– 1.17)

= 5.86/ 0.03

= 195.33 Rs.


Where,





Current market price (C0) of the share is lower than Expected price of

Share (P0).Here share price is undervalued so investors are advised to buy the



143


D. SUZLON

YEAR DIVIDEND PER SHARE (Rs.) GROWTH RATE (%)MAR'03 5 0%MAR'04 10 100%MAR'05 4 -60.00%MAR'06 5 25.00%MAR'07 5 0.00%

TOTAL 65.00%

AVERAGE ANNUAL GROWTH RATE (g) = 65/4

=16.25%

D1= D0 (1+g) P1= (460+186.40) / 2 Ke = (D1/P1) +g

= 5 (1+0.1625) =323.2 Rs. = (5.81/323.2) +0.16

= 24.5 (1.1625) = 0.18%

= 5.81 Rs.

P0=D1/ (Ke –g)

= 5.81/ (0.18– 0.16)

= 5.81/ 0.02

= 290.5 Rs.


Where,









144


E. ELECON

YEAR DIVIDEND PER SHARE (Rs.) GROWTH RATE (%)MAR'03 0 0%MAR'04 1 100%MAR'05 2.5 150.00%MAR'06 5 100.00%MAR'07 7.5 50.00%

TOTAL 400.00%

AVERAGE ANNUAL GROWTH RATE (g) = 400/4

=100.00%

D1= D0 (1+g) P1= (343+109.89) / 2 Ke = (D1/P1) +g

= 7.5 (1+1) = 226.45 Rs. = (15/226.45) +1

= 7.5 (2) = 1.07

= 15 Rs.

P0=D1/ (Ke –g)

= 15/ (1.07– 1)

= 15/ 0.07

= 214.28Rs.


Where,









145


Limitation of the Project

1. As the data available to me has been taken from the secondary sources (like

internet). It is not sure that collected data are accurate and complete.

2. Because of the time limitation, it may be possible that some important data

are left out.

3. The data which are very useful for the fundamental analysis are lacking in this

Project or contract that are still in negotiation or any kind of deal which is in-

process. Here that is ignored.

4. Due to lack of experience and knowledge of the engineering industry it can’t

be said that the projection has been made totally correct and accurate.

5. As the time available was very less, so fundamental analysis has been done

only of five companies. This may led to misinterpretation of the industry.

6. Today’s stock market is totally running on the investors perception so the

conclusion derived on the basis if fundamental analysis would not viable in

long run.


146


CONCLUSION & SUGGESTIONS

SUGGESTIONS FOR INVESTORS

Engineering companies have lots of room to grow; so invest in

theses type of industries helps the investors at long time.

Buy shares of reputed companies backed by top class management.

Do not invest in inactive shares generally it is difficult to encash them.

Before investing we should undertake a deeps study on the net sales,

net profits in relations to equity capital employed & should attempt to

forecast for the coming years.

From the company point of view, the company should allow the

investors to take part in board of directors meeting & gives maximum

dividend to the shareholders.

Do not over pay for growth.

Do not invest in unlisted shares.

The investors should become cautious while investing for very long time.

The investors should analyze the price movement.

Economic performance is greatly affected to the performance of the

industries of the country, so investors should know economic

performance of the country while investing.

Before investing in any company, this is required to implement all the

data & financial results & also decision him self.

If they follow the market trends then they can deliver high returns & also they

should have reduced the risks.


147


CONCLUSION

BHEL shows good position of most of the ratios which is good sign for the

company and will enjoy rapid growth. BHEL has more numbers of strong

point rather than weak points.

Where BEML Is also well Position of ratios so it reflects that firm is

growing and shows good position.

PRAJ’s earning is very high and dividend paid is also very high so it

indicates good sign for the company, and investors to invest.

Remaining two is not in good condition because positions of the ratios are

not so good.

Suzlon’s profit is highest compare to other companies. Even BHEL also

have very good profit earned during 2007 so the both the companies

having good condition as far as profit is concerned.

BHEL and BEML both have good earning per share so both indicates

good sign for investors while other companies have not so good condition

compare to above mentioned companies.

BHEL has declared highest dividend and BEML has declared little less

amount to the share holders. So both the firm are operating in very good

condition and both are good to invest money from the investor’s point of

view.

Elecon’s liquidity is very good and it is able to meet short-term obligation,

BEML has also very good condition so far as liquidity is concerned. so it

reflects that both firm’s position is good.

PRAJ and BHEL have declared maximum dividend to the share holders so

both are good to invest.

so according to findings and suggestions we can brought out the final

conclusion that overall engineering sector is good for investing because most of

the companies have declared more dividend compare to previous years. so

investors are advised to invest .

BIBLEOGRAPHY


148


1. www.Religareonline.com

2. www. Moneycontrol.com

3. Management Accounting

-R.S. N. Pillai and Bagvati (S.Chand)

ANNEXURES


149


BHARAT HEAVY ELECTRICALS LTD. BALANCE SHEET

(Rs. in Cr.) Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04 Mar ' 03

SOURCES OF FUNDS

Owner's Fund

Equity Share Capital 244.76 244.76 244.76 244.76 244.76

Share Application Money 0.00 0.00 0.00 0.00 0.00

Preference Share Capital 0.00 0.00 0.00 0.00 0.00

Reserves & Surplus 8,543.50 7,056.62 5,782.13 5,051.18 4,558.91

Loan Funds

Secured Loans 0.00 500.00 500.00 500.00 500.00

Unsecured Loans 89.33 58.24 36.98 40.03 31.09

Total 8,877.59 7,859.62 6,563.87 5,835.97 5,334.76

USES OF FUNDS

Fixed Assets

Gross Block 4,134.61 3,821.62 3,628.50 3,459.16 3,347.82

Less : Revaluation Reserve 0.00 0.00 0.00 0.00 0.00

Less : Accumulated Depreciation 3,146.31 2,839.79 2,584.70 2,365.46 2,178.81

Net Block 988.30 981.84 1,043.80 1,093.70 1,169.02

Capital Work-in-progress 306.58 191.27 98.12 109.57 67.55

Investments 8.29 8.29 8.95 28.98 10.33

Net Current Assets Current Assets, Loans & Advances

25,239.99 19,232.68 13,987.44 11,065.39 8,893.01

Less : Current Liabilities & Provisions

17,665.57 12,554.46 8,574.44 6,479.60 4,900.65

Total Net Current Assets 7,574.42 6,678.22 5,413.01 4,585.79 3,992.36Miscellaneous expenses not written

0.00 0.00 0.00 17.92 95.50

Total 8,877.59 7,859.62 6,563.88 5,835.96 5,334.76

Note : Book Value of Unquoted Investments

8.29 8.29 8.95 28.98 10.33

Market Value of Quoted Investments

0.00 0.00 0.00 0.00 0.00

Contingent liabilities 976.05 769.95 609.68 815.79 1,054.58Number of Equity shares outstanding (Lakhs)

2,447.60 2,447.60 2,447.60 2,447.60 2,447.60

ELECON ENGINEERING COMPANY LTD. BALANCE SHEET (Rs. in Cr.)


150


Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04 Mar ' 03 SOURCES OF FUNDS Owner's Fund Equity Share Capital 6.18 5.71 5.65 5.65 5.65Share Application Money 0.00 0.00 0.00 0.00 0.00Preference Share Capital 0.00 0.00 0.00 0.00 0.00Reserves & Surplus 181.72 96.96 67.66 59.48 57.95Loan Funds Secured Loans 256.62 150.61 66.96 33.51 40.33Unsecured Loans 27.04 55.13 29.19 35.35 16.83Total 471.56 308.41 169.46 133.99 120.76 USES OF FUNDS Fixed Assets Gross Block 246.65 202.71 172.52 150.33 146.61Less : Revaluation Reserve 0.00 0.00 0.00 0.00 0.00Less : Accumulated Depreciation

124.38 118.16 111.19 104.77 99.21

Net Block 122.27 84.56 61.32 45.56 47.40Capital Work-in-progress 4.47 10.66 0.73 0.00 0.00 Investments 8.04 6.29 5.65 5.76 5.91 Net Current Assets Current Assets, Loans & Advances

610.09 433.68 267.76 187.28 132.35


273.74 229.07 171.02 112.81 76.63

Total Net Current Assets 336.35 204.60 96.74 74.47 55.72Miscellaneous expenses not written

0.43 2.30 5.02 8.20 11.72

Total 471.56 308.41 169.46 133.99 120.75Note : Book Value of Unquoted Investments

4.98 3.23 2.78 2.89 3.04


45.35 53.67 26.33 14.77 8.11

Contingent liabilities 20.57 50.87 21.83 10.32 9.73Number of Equity shares outstanding (Lakhs)

309.24 57.08 56.47 56.47 56.47

SUZLON ENERGY LTD. BALANCE SHEET (Rs. in Cr.)



151


SOURCES OF FUNDS

Owner's Fund




Reserves & Surplus 3,425.53 2,519.72 727.65 377.48 271.37

Loan Funds

Secured Loans 771.78 276.61 285.46 172.38 79.35

Unsecured Loans 364.86 58.76 37.08 48.28 8.28

Total 4,849.95 3,157.62 1,252.11 637.49 372.20

USES OF FUNDS

Fixed Assets

Gross Block 567.04 400.41 217.88 159.09 80.38


Less : Accumulated Depreciation 178.57 104.73 57.61 23.77 14.44

Net Block 388.47 295.68 160.27 135.31 65.94

Capital Work-in-progress 92.71 76.25 17.93 12.43 1.73

Investments 805.26 292.74 126.01 53.33 10.63

Net Current Assets Current Assets, Loans & Advances

5,068.61 3,754.36 1,665.88 821.11 532.62


1,505.10 1,261.41 717.97 384.75 238.74

Total Net Current Assets 3,563.51 2,492.95 947.91 436.36 293.87Miscellaneous expenses not written

0.00 0.00 0.00 0.06 0.03

Total 4,849.95 3,157.62 1,252.12 637.49 372.20

Note : Book Value of Unquoted Investments

805.26 292.74 126.01 52.96 10.22


0.00 0.00 0.00 0.37 0.34

Contingent liabilities 3,607.72 251.63 78.61 54.24 25.62Number of Equity shares outstanding (Lakhs)

2,877.65 2,875.31 869.23 243.48 121.74

BEML LTD. BALANCE SHEET (Rs. in Cr.)



152


SOURCES OF FUNDS

Owner's Fund




Reserves & Surplus 996.61 842.84 697.81 564.37 548.27

Loan Funds

Secured Loans 25.57 24.88 74.91 31.48 31.30

Unsecured Loans 0.00 0.00 0.00 1.80 2.20

Total 1,059.05 904.59 809.59 634.52 618.64 USES OF FUNDS

Fixed Assets

Gross Block 596.43 565.12 543.95 543.34 534.25


Less : Accumulated Depreciation 452.57 439.92 427.38 409.49 392.13

Net Block 143.86 125.20 116.58 133.85 142.12

Capital Work-in-progress 28.26 17.59 6.25 1.78 3.47 Investments 2.53 2.53 2.53 2.79 6.63 Net Current Assets

Current Assets, Loans & Advances 2,090.29 1,972.06 1,992.95 1,654.42 1,660.11

Less : Current Liabilities & Provisions 1,224.77 1,238.59 1,349.01 1,190.67 1,246.64

Total Net Current Assets 865.52 733.47 643.94 463.75 413.47

Miscellaneous expenses not written 18.90 25.81 40.30 32.37 52.95

Total 1,059.07 904.60 809.60 634.54 618.64

Note :

Book Value of Unquoted Investments 2.53 2.53 2.53 2.53 3.78

Market Value of Quoted Investments 0.00 0.00 0.00 0.36 2.84

Contingent liabilities 150.30 108.90 33.49 31.43 41.61Number of Equity shares outstanding (Lakhs)

367.45 367.45 367.45 367.45 367.45

BHARAT HEAVY ELECTRICALS LTD. INCOME STATEMENT (Rs. in Cr.)

Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04 Mar ' 03 Income : Operating Income 17,362.89 13,441.45 9,639.00 8,036.73 6,999.31 Expenses


153


Material Consumed 8,380.04 6,713.40 4,557.90 3,665.28 3,205.70Manufacturing Expenses 1,992.67 1,283.69 1,003.97 795.47 678.06Personnel Expenses 2,366.93 1,878.51 1,650.38 1,639.51 1,504.64Selling Expenses 222.18 195.84 182.32 83.62 127.52Adminstrative Expenses 855.87 1,146.43 941.04 998.89 527.29Expenses Capitalised 0.00 0.00 0.00 0.00 0.00 Cost of Sales 13,817.69 11,217.86 8,335.61 7,182.78 6,043.22 Operating Profit 3,545.20 2,223.59 1,303.39 853.96 956.09 Other Recurring Income 502.85 329.66 308.48 279.70 238.54 Adjusted PBDIT 4,048.05 2,553.25 1,611.87 1,133.66 1,194.63 Financial Expenses 43.33 58.75 81.41 60.08 54.78Depreciation 244.61 245.93 218.87 198.00 185.35Other Write offs 0.00 0.00 0.00 0.00 0.00 Adjusted PBT 3,760.11 2,248.57 1,311.60 875.57 954.50

ELECON ENGINEERING COMPANY LTD. INCOME STATEMENT (Rs. in Cr.)

Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04 Mar ' 03 Income : Operating Income 720.25 456.52 272.76 159.36 157.69 Expenses Material Consumed 441.11 271.78 170.73 89.37 88.87Manufacturing Expenses 57.23 31.55 13.94 15.48 21.77Personnel Expenses 27.09 22.17 11.79 11.54 10.39Selling Expenses 44.19 44.10 23.09 13.22 12.36Adminstrative Expenses 30.23 17.97 10.92 9.73 9.18Expenses Capitalised 0.00 0.00 0.00 0.00 0.00 Cost of Sales 599.85 387.57 230.46 139.35 142.57 Operating Profit 120.40 68.94 42.30 20.01 15.12 Other Recurring Income 4.40 7.57 1.90 2.46 2.39 Adjusted PBDIT 124.80 76.52 44.20 22.47 17.51 Financial Expenses 24.66 18.22 12.34 9.26 7.86Depreciation 12.22 9.43 8.23 7.84 8.08Other Write offs 0.00 0.00 0.00 0.00 0.00 Adjusted PBT 87.91 48.87 23.62 5.36 1.57 Tax Charges 29.50 13.09 7.37 -0.02 -0.27


154


Adjusted PAT 58.41 35.78 16.25 5.38 1.84Non Recurring Items -3.51 -7.89 -6.21 -3.21 -0.10Other Non Cash adjustments -0.01 0.04 -0.25 0.00 0.00 Reported Net Profit 54.90 27.88 10.04 2.17 1.74 Earnigs Before Appropriation 58.93 29.53 12.52 3.87 1.70 Equity Dividend 4.64 3.07 1.41 0.56 0.00Preference Dividend 0.00 0.00 0.00 0.00 0.00Dividend Tax 0.79 0.43 0.20 0.07 0.00Retained Earnings 53.51 26.04 10.91 3.24 1.70

SUZLON ENERGY LTD. INCOME STATEMENT (Rs. in Cr.)

Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04 Mar ' 03 Income : Operating Income 5,380.37 3,788.46 1,917.50 791.15 332.60 Expenses Material Consumed 3,265.14 2,295.66 1,147.99 506.58 213.85Manufacturing Expenses 288.30 263.96 20.48 7.65 17.51Personnel Expenses 111.46 62.96 35.32 17.66 10.72Selling Expenses 327.42 167.98 177.45 78.70 18.57Adminstrative Expenses 142.51 60.08 72.08 34.36 16.85Expenses Capitalised 0.00 0.00 0.00 0.00 0.00 Cost of Sales 4,134.83 2,850.64 1,453.32 644.94 277.50 Operating Profit 1,245.54 937.82 464.18 146.21 55.09 Other Recurring Income 86.25 69.28 22.96 12.84 8.66 Adjusted PBDIT 1,331.79 1,007.10 487.15 159.05 63.75 Financial Expenses 104.03 56.93 43.65 25.78 7.83Depreciation 73.49 45.87 38.97 9.65 7.22Other Write offs 0.00 0.00 0.06 0.03 0.02 Adjusted PBT 1,154.27 904.30 404.47 123.59 48.68 Tax Charges 69.40 81.43 30.92 3.60 2.90 Adjusted PAT 1,084.87 822.87 373.55 119.99 45.78Non Recurring Items -34.69 -1.64 -12.32 24.24 -2.42Other Non Cash adjustments 10.96 -0.04 0.24 0.78 22.52 Reported Net Profit 1,061.14 821.19 361.47 145.90 42.67 Earnigs Before Appropriation 1,943.63 1,348.14 668.10 383.35 256.05


155


Equity Dividend 143.88 143.76 34.78 24.35 6.09Preference Dividend 1.50 1.51 1.51 0.09 0.13Dividend Tax 20.39 20.38 4.87 3.18 0.80Retained Earnings 1,777.86 1,182.49 626.95 355.74 249.03

PRAJ INDUSTRIES LTD. INCOME STATEMENT (Rs. in Cr.)

Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04 Mar ' 03 Income : Operating Income 592.30 261.76 230.82 106.36 87.80 Expenses Material Consumed 386.89 172.41 155.00 68.68 50.68Manufacturing Expenses 27.00 13.60 9.31 6.43 6.11Personnel Expenses 28.62 17.13 11.41 6.77 5.97Selling Expenses 6.59 3.65 8.58 3.66 4.17Adminstrative Expenses 35.37 19.42 16.89 8.86 12.60Expenses Capitalised 0.00 0.00 0.00 0.00 0.00 Cost of Sales 484.46 226.21 201.18 94.40 79.53 Operating Profit 107.84 35.55 29.64 11.97 8.27 Other Recurring Income 5.80 1.22 1.90 2.14 1.29 Adjusted PBDIT 113.64 36.77 31.54 14.11 9.56 Financial Expenses 3.11 2.99 2.47 1.61 2.23Depreciation 3.16 2.65 1.96 1.57 1.60Other Write offs 0.00 0.00 0.00 0.00 0.00 Adjusted PBT 107.37 31.13 27.12 10.92 5.74 Tax Charges 23.84 7.49 5.80 2.75 2.44 Adjusted PAT 83.53 23.63 21.31 8.17 3.30Non Recurring Items 3.00 1.26 0.79 -0.16 -1.00Other Non Cash adjustments 0.00 -0.48 -0.35 0.13 0.12 Reported Net Profit 86.53 24.41 21.76 8.14 2.43 Earnigs Before Appropriation 113.00 41.12 29.64 13.20 1.73 Equity Dividend 22.62 10.22 8.76 3.65 0.00Preference Dividend 0.00 0.00 0.00 0.00 0.00Dividend Tax 3.17 1.43 1.20 0.47 0.00Retained Earnings 87.21 29.47 19.68 9.08 1.73


156


BEML LTD. INCOME STATEMENT (Rs. in Cr.)

Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04 Mar ' 03 Income : Operating Income 2,444.74 2,073.85 1,741.63 1,675.23 1,549.44 Expenses Material Consumed 1,519.26 1,345.37 1,022.82 1,141.30 1,055.59Manufacturing Expenses 62.22 38.11 32.71 27.22 26.67Personnel Expenses 350.11 318.31 334.96 329.98 317.39Selling Expenses 68.79 71.16 37.73 52.34 2.31Adminstrative Expenses 118.85 102.35 92.96 106.58 160.09Expenses Capitalised -2.65 -87.49 -67.01 -64.33 -80.92 Cost of Sales 2,116.58 1,787.81 1,454.17 1,593.08 1,481.13 Operating Profit 328.16 286.04 287.46 82.15 68.31 Other Recurring Income 31.24 25.20 25.02 20.24 29.40 Adjusted PBDIT 359.40 311.24 312.47 102.39 97.71 Financial Expenses 8.19 8.51 5.42 4.73 7.72Depreciation 13.52 14.12 22.99 18.29 19.31Other Write offs 0.00 0.00 0.00 5.60 7.33 Adjusted PBT 337.69 288.61 284.06 73.77 63.36 Tax Charges 111.11 98.49 97.51 26.02 11.77 Adjusted PAT 226.58 190.12 186.55 47.75 51.59Non Recurring Items -28.53 -31.92 -34.96 -34.12 -35.92Other Non Cash adjustments 6.88 28.73 23.70 10.78 10.43 Reported Net Profit 204.93 186.93 175.28 24.17 26.10 Earnigs Before Appropriation 246.39 203.36 178.28 27.80 27.67 Equity Dividend 51.15 38.29 37.46 7.35 7.35Preference Dividend 0.00 0.00 0.00 0.00 0.00Dividend Tax 0.00 3.61 4.38 0.96 0.94Retained Earnings 195.24 161.46 136.43 19.49 19.38

Dividend Details OF BEML

Year Dividend (%)

200703 120 200603 100


157


200503 100 200403 20 200303 20 200203 12 200103 10 200003 20 199903 0 199803 20 199803

BHARAT HEAVY ELECTRICALS LTD. DIVIDEND DETAILS

Year Dividend (%)

2007 245 2006 145 2005 80 2004 60 2003 40 2002 40 2001 30 2000 30 1999 25 1998 25

ELECON DIVIDEND DETAILS

Year Dividend (%)

200703 75 200603 50 200503 25 200403 10 200303 0 200203 0 200103 0 200003 18 199903 20 199803

SUZLON DIVIDEND DETAILS

Year Dividend (%)

200703 50 200603 50 200503 40 200403 100


158


200303 50 200203 160

PRAJ IND. DIVIDEND DETAILS

Year Dividend (%)

200703 135 200603 63 200503 108 200403 45 200303 0 200203 0 200103 0 200003 0 199903 0 199803

52 Week High / Low's OF BEML

Exchange High High Date Low Low Date

BSE 1,849.95 12/5/2007 938.00 4/19/2007NSE 1,851.90 12/5/2007 855.85 3/7/2007

ELECON

Exchange Name

High (Rs.) High Date Low (Rs.) Low Date

NSE 343.30 20/12/2007 109.74 08/03/2007BSE 343.00 20/12/2007 109.89 14/03/2007

SUZLON

Exchange Name


NSE 459.80 09/01/2008 186.20 03/04/2007BSE 460.00 09/01/2008 186.40 03/04/2007

PRAJ

Exchange Name


NSE 272.95 14/12/2007 112.10 22/01/2008BSE 273.45 14/12/2007 114.00 22/01/2008


159


BHELExchange

NameHigh (Rs.) High Date Low (Rs.) Low Date

NSE 2930.45 20/12/2007 970.67 08/03/2007BSE 2925.00 20/12/2007 970.00 14/03/2007


160

fundamental analysis on engineering sector

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