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A

PROJECT REPORT

ON

A STUDY OF RATIO ANALYSIS ON

HERO HONDA COMPANY

Submitted to

Yashwantrao Chavan Maharashtra Open

University, Nashik

IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE

DEGREE OF MASTER OF BUSINESS ADMINISTRATION

Submitted by

Mr. SACHIN SUDHAKAR PATRIKAR

PRN.NO. 2008017000783581

M.B.A. Final Year

(IN FINANCIAL MANAGEMENT)

Guide

Dr. M.A. BURGHATE

STUDYCENTRE:

DHANAWATE NATIONAL COLLEGE,NAGPUR

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INTRODUCTION OF TOPIC

The basic requirement to start a new business is -7-m-

man, machine, material, market, method, management and

money. But the most important factor is money because with the

help of money, we can arrange the other six factors. So the basic

need start with money and to arrange it, every new unit has to

undergo a process of project financing. Project financing is a

process of arranging money from is suppliers i.e. Banker.

Financial statement analysis is important to board,

manager and other who make the judgment of financial health of

the org. comparative data and this comparison is best presented

with help of ratio.

Ratio analysis can be used to compare the risk and

return relationship of firm. Ratio analysis is widely used tool of

financial analysis. It is defined as the systematic use of ratio to

interpret the financial statement so that the strengths and

weakness of a firm and current financial condition can be

determined.

Ratio analysis is the process of determining and

presenting in arithmetical terms the relationship between figures

and group of figures drawn from these statements. A ratio may

be defined as the indicated quotient of two mathematical

expressions and as the relationship between two or more things.

The ratio can be calculated by dividing one figure by the other.

The quotient so obtained in the ratio of the figures.

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CLASSIFICATION OF RATIO

ANALYSIS

1. The liquidity ratios

2. The leverage ratios

3. The activity ratios

4. The profitability ratios

1. LIQUIDITY RATIOS

Liquidity ratios measure the firms ability to meet its

current obligations i.e. ability to pay its obligations as and when

they become due. They show whether the firm can pay its short

term obligations out of short term resources or not. Liquidity

radios establish a relationship between cash and other current

assets to current obligations. Low liquidity may result in the

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failure of meeting firms short term liabilities and unnecessary

law suits. A very high degree of liquidity is also bad because the

funds are unnecessarily tied up in current assets which earn

nothing. Liquidity ratios are:

1. Current ratios.

2. Acid test or quick ratio.

1.1.Current Ratio:

Current Ratio = Current Assets Current Liabilities.

Current ratio expresses relationship between current

assets and current liabilities and can be calculated by dividing

current assets by current liabilities e.g. -

Current assets include cash and those other assets

which can be converted into cash within one year such as

marketable securities accounts receivables stock (debtors) stock

(inventories) and prepaid expenses.

Current liabilities include those liabilities which are to

be paid by the firm within one year and include creditors bills

payable accrued expenses, bank overdraft, income tax liability

and long term debts due to nature within current year.

In a sound business, a current ratio of 2:1 is considered

an ideal one. If current ratio is lower than 2:1, the short term

solvency of the firm is considered doubtful and it shows that the

firm is not in the position to meet its current liabilities in time.

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Significance of current ratio:

Current ratio indicates the firms ability to pay its current

liabilities.

It shows short term financial strength.

It is a test of credit strength and solvency of a firm.

It indicates the strength of the working capital.

It indicates the capacity to carry on effective operations.

It discloses the over trading or under capitalization.

Higher ratio i.e. more than 2:1 indicates sound solvency

position.

1.2.Acid Test Ratio or Quick Ratio:

Quick Ratio = Quick or Liquid Assets Currents

Liabilities.

Acid test or quick ratio a more refined to measure the

firms liquidity. It establishes relationship between quick or liquid

assets and current liabilities. Liquid assets include can and those

assets which can be converted into cash immediately without

loss of value such as securities (temporary investments), and

debtors and bills receivables (book debts) stock and prepaid

expenses are not included in quick assets.

This ratio is also called liquid ratio. A quick ratio 1:1 is

considered ideal and represents a satisfactory financial position.

It indicates the relation between strictly liquid assets whose

value is almost certain one hand, one strictly liquid liabilities on

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the other. Liquid assets comprise all current assets minus stock

and prepaid expenses. Liquid liabilities comprise all current

liabilities minus bank overdraft. Stock is excluded from liquid

assets on the ground that it is not converted into cash in theimmediate future.

Significance of Quick Ratio:

It is the true test of business solvency.

Higher ratio i.e. more than 1:1 indicates sound financial

position.

Lower ratio i.e. less than 1:1 indicates financial difficulty.

This is an important ratio of financial institutions.

It is a stringent test of liquidity.

It gives better picture of firms ability to meet its short

term debts out of short term assets.

If the current ratio is more than 2:1 but liquid ratio is less

than 1:1 it indicates excessive inventory.

2. LEVERAGE RATIOS

A firm must have strong financial position to meet its short term

as well as long term obligations. The long term creditors are

interested in the soundness of a firm on the basis of long

financial position. To judge the long term financial position of the

firm leverage or capital structure ratios are used. These ratios

indicate the funds provided by the long term creditors and

owners. Leverage ratios are:

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1. Debt equity ratio.

2. Proprietary ratio.

2.1.Debt Equity Ratio:

Debt Equity Share = Debt Equity.

The debt equity ratio is the measure of relative claims

of creditors and owners against the firms assets. There are

various interpretations of debt and equity and therefore debt

equity ratio may be calculated in number of ways. Debt is alsoknown as share holder fund or internal liability. Debts is includes

debentures, long term loans and borrowing, sundry creditors and

bills payable. Equity is includes equity share capital, preference

share capital, accumulated profit, reserves and surplus.

How much fund has been provided by the owners and

how much by outsiders in the acquisition of total assets is a very

significant factor affecting the long term solvency position of a

concern. In the other words, the relationship between borrowed

funds and owners capital is popular measure of the long term

financial solvency of a firm.

As acceptable norm for this ratio is considered to be

2:1. A high ratio shows that the claims of creditors are greater

than those of owners. A high debt company also known as highly

leveraged or geared is able to borrow funds on very restrictive

terms and conditions. A low debt equity ratio implies a Greater

claim of owners than creditors, it represents a satisfactory.

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2.2. Proprietary Ratio:

Proprietary Ratio = Share Holder Total Assets.

Proprietary ratio relates the shareholders funds to totalassets. This is the ratio to calculate the contribution of share

holder fund in total assets. Share holder funds includes capital

equity share, preference share capital and total assets includes

current assets, investments, fixed assets etc. it is very important

to creditors as it helps them to find out the proportion of

shareholders funds in the assets used in the business. Higher

ratio indicates a secured position to creditors and a low ratio

indicates greater risk to creditors. The acceptable norm of the

ratio is 1:3. This ratio shows the general strength of the

company.

Significance of proprietary ratio:

It indicates long term solvency of the firm.

It shows the proportion of assets financed by the

proprietors.

It is a test of long term credit strength.

It measures the extent of protection available to creditors.

3. ACTIVITY RATIOS

Activity ratios are concerned with how efficiently the

assets of the firm are managed. Sometimes, these ratios are

called efficiency ratios. These ratios express relationship

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between the level of sales and the investment in various assets.

The efficiency with which assets are used would be reflected in

the speed and rapidity with which assets are converted into

sales. The greater t rates of turnover or conversion, the moreefficient utilization or management other things being equal.

Activity ratios include

1. Inventory turnover ratio.

2. Fixed asset ratio.

3.1.Inventory turnover ratio:

Cost of Goods Sold =

Opening Stock + Manufacturing Cost + Purchase Closing

Stock of Inventory.

(Average inventory = Opening Stock +Closing Stock 2).

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(Inventory Turnover= Cost of Goods Sold Average

Inventory).

This is also known as stock velocity. This ratio is

calculated to consider the adequacy of quantum of capital and its

justification for investing in inventory. This ratio indicates the

number of times inventory or stock is replaced during the year. It

measure the relationship between goods sold and inventory

level. The higher the turnover the better is the performance of

the company, for it has managed to operate with a relatively

small average locking up of funds. A low sale to inventory ratio

may indicate a slow moving inventory, suffering possibly form

obsolescence too aggressive sales forces. This ratio indicates

whether investment in inventory is within proper limit or not. The

quantum of stock should be sufficient to meet the demands of

the business but it should not be too large to indicate

unnecessary lock up of capital in stock and danger stock.

Significance of inventory turnover ratio:

A high inventory turnover ratio is better than a low ratio.

A high ratio implies good inventory management and an

indication of under investment.

A low inventory turnover ratio is dangerous. It is an

indication of excessive inventory turnover investment in

inventory.

3.2. Fixed Assets Turnover:

Fixed Assets Turnover = Sales Fixed Assets.

This ratio is calculated by dividing sales into fixed

assets. It is used to highlight the extent or utilization of the

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companys plant and equipment. A low ratio is indicatives of the

poor utilization of the existing plant capacity. This factor should

be kept in mind while production department requests for funds

for new capital investment. It is also known as sales to fixedasset ratio. This ratio measures the efficiency and profit earning

capacity of the firm. Higher the ratio, greater is the intensive

utilization fixed assets. Lower ratio means under utilization of

fixed assets.

4. PROFIBILITY RATIOS

The management is eager to have and measure the

operating efficiency of the concern to show how best it has

managed the financial resources of the concern. On the other

hand, shareholder, who invest their funds in the company also

expect a fair return on their investments. Thus both these groups

are interested in the higher profitability of the concern.

Profitability is the measure of efficiency and the search for it

provides an incentive in a achieve efficiency. Profitability also

indicates public acceptance of the product the company is

producing and the company itself and shows that the firm can

produce competitively. Profitability is also important to measure

the firms ability to pay debt and servicing.

Profitability ratios can be determined on the basis of

either sales or investment. The profitability ratios in relative to

sales are

1. Gross profit ratio.

2. Operating ratio.

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4.1.Gross profit ratio:

Gross Profit Ratio = Gross Profit Sales 100.

This gross profit ratio is also known as gross margin

ratio; the ratio establishes relationship of gross profit with sales

to measure the operating efficiency of the firm and to reflect its

pricing policy. The rated is calculated by dividing the gross profit

by sales.

Gross profit is the result of relationship between prices,sales volume and costs. Any change in any of these factors

would affect the gross profit to sales ratio. A high ratio is an

indication of good management or a high selling price of the

product or low cost or production. A relatively low margin is

certainly a danger signal, warranting a careful and detailed

analysis of the factors responsible for it. It is useful as a test of

profitability and management efficiency. Gross profit shows thegap between revenue and trading costs.

A higher ratio may be increase the selling prices of

goods sold without any corresponding increase in the cost of

goods sold. The gross profit ratio should remain the same form

year to year, because cost of sales will normally vary directly and

in the same proportion with sale. Higher ratio is better.

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A lower gross profit is very low it may be an indicator

of lower and poor profitability.

4.2.Operating Ratio:

Cost of Goods Sold + Operating Exp. 100

Net Sale

These ratios are shown in relation to the percentage of

net sale. The most important operating ratio is the ratios of cost

of sale to net sale. It is fairly good index of operating efficiency. It

can be used as a test of financial condition after considering

other revenues and expenses operating expenses includeadministration expenses, manufacturing expenses, selling

expenses.

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OBJECTIVES

A Ratio Analysis is done for the following purpose

1. To Measure Financial Solvency:

Ratios are useful tools in the hands of management and

other concerned to evaluate the firms performance over a period

of time by comparing the present ratio with the past ones. They

point out firms liquidity position to meet its short term obligation

and long term solvency.

2. To Measure General Efficiency:

Ratios enable the mass of accounting data to be

summarized and simplified. They act as an index of the efficiency

of the firm. As such they serve an instrument of management

control.

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3. To Forecast and Planning:

Ratio analysis is an invaluable aid to management in

the discharged of its basic function planning forecasting, control

etc. the ratio that are derived after analyzing and securitizing the

past result, help the management to prepare budgets to

formulate policies and prepare the future plan of action etc.

4. To Facilitate Decision Making:

It throws lights on the degree of efficiency of the

management and utilization of the assets and that it why it is

called survey of efficiency. They help management in decision

making.

5. To Take Corrective Action:

Ratio analysis provides inter firm comparison. They

highlight the factors associated with successful and unsuccessful

firms. If comparison shows an unfavorable variance, corrective

action can be initiated. Thus it helps the management to take

corrective action.

6. To Make Inter Firm Comparison:

It is an instrument for diagnosis of financial of an

enterprise. It facilitates the managements to know whether the

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firms financial position is improving or deteriorating by setting a

trend with the help of ratios.

SCOPES

1. Rations indicate trends which will help in decision making

and forecasting.

2. Ratio analysis helps in assessment of liquidity, profitability

and solvency of the firm.

3. It indicates the overall operating efficiency and

performance of the firm.

4. It helps in understanding the financial statement.

5. It provides basis not only for intra firm comparison but also

for inter firm comparison.

6. Comparison of actual ratios with base year ratios or

standard ratios will help the management in controlling the

affair of the firm.

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RESEARCH METHODOLOGY

The different type of methods, tools and techniques used for research

are known as research methodology. It is the path adopted by the researcher to

complete research project. Hence it plays a vital role in the completion of the

project.

Source of information:

There are two sources by which information was collected.

1. Primary data:

Primary source of information were not their as the company is not

situated in Nagpur therefore the first hand information about the company notpossible.

2. Secondary data:

The major source of secondary information was financial statement of

hero Honda company limited annual report of the balance sheet and its website.

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HYPOTHESIS

This study has been taken to prove that

The financial condition of the Hero Honda Company is good. The financial health can be determined by the ratio analysis.

Company Profile

The joint venture between India's Hero Group and

Honda Motor Company, Japan has not only created the world's

single largest two wheeler company but also one of the most

successful joint ventures worldwide.

During the 80s, Hero Honda became the first company

in India to prove that it was possible to drive a vehicle without

polluting the roads. The company introduced new generation

motorcycles that set industry benchmarks for fuel thrift and low

emission. A legendary 'Fill it - Shut it - Forget it' campaign

captured the imagination of commuters across India, and HeroHonda sold millions of bikes purely on the commitment of

increased mileage.

Over 20 million Hero Honda two wheelers tread Indian

roads today. These are almost as many as the number of people

in Finland, Ireland and Sweden put together!

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Hero Honda has consistently grown at double digits

since inception; and today, every second motorcycle sold in the

country is a Hero Honda. Every 30 seconds, someone in India

buys Hero Honda's top -selling motorcycle Splendor. Thisfestive season, the company sold half a million two wheelers in a

single montha feat unparalleled in global automotive history.

BOARD OF DIRECTORS

No. Name of the Directors Designation

1 Mr. Brijmohan Lall Munjal Chairman & Whole-time Director

2 Mr. Pawan Munjal Managing Director & CEO

3 Mr. Toshiaki Nakagawa Joint Managing Director

4 Mr. Sumihisa Fukuda Technical Director

5 Mr. Om Prakash Munjal Non-executive Director

6 Mr. Sunil Kant Munjal Non-executive Director

7 Mr. Masahiro

Takedagawa

Non-executive Director

8 Mr. Satoshi Matsuzawa

(Alternate Director to Mr.

Takashi Nagai)

Non-executive Director

9 Mr. Pradeep Dinodia Non-executive & Independent Director

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http://www.herohonda.com/co_board_directors.htm#1%231http://www.herohonda.com/co_board_directors.htm#2%232http://www.herohonda.com/co_board_directors.htm#3%233http://www.herohonda.com/co_board_directors.htm#4%234http://www.herohonda.com/co_board_directors.htm#5%235http://www.herohonda.com/co_board_directors.htm#6%236http://www.herohonda.com/co_board_directors.htm#7%237http://www.herohonda.com/co_board_directors.htm#7%237http://www.herohonda.com/co_board_directors.htm#81%2381http://www.herohonda.com/co_board_directors.htm#8%238http://www.herohonda.com/co_board_directors.htm#8%238http://www.herohonda.com/co_board_directors.htm#9%239http://www.herohonda.com/co_board_directors.htm#1%231http://www.herohonda.com/co_board_directors.htm#2%232http://www.herohonda.com/co_board_directors.htm#3%233http://www.herohonda.com/co_board_directors.htm#4%234http://www.herohonda.com/co_board_directors.htm#5%235http://www.herohonda.com/co_board_directors.htm#6%236http://www.herohonda.com/co_board_directors.htm#7%237http://www.herohonda.com/co_board_directors.htm#7%237http://www.herohonda.com/co_board_directors.htm#81%2381http://www.herohonda.com/co_board_directors.htm#8%238http://www.herohonda.com/co_board_directors.htm#8%238http://www.herohonda.com/co_board_directors.htm#9%239


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10 Gen. (Retd.) Ved Prakash

Malik

Non-executive & Independent Director

11 Mr. Analjit Singh Non-executive & Independent Director

12 Dr. Pritam Singh Non-executive & Independent Director

13 Ms. Shobhana Bhartia Non-executive & Independent Director

14 Mr. Sunil Bharti Mittal Non-executive & Independent Director

15. Mr. Meleveetil

Damodaran

Non-executive & Independent Director

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ABOUT THE CHAIRMAN

Brijmohan Lall Munjal Seeding a Dream

"Don't dream if you can't fulfill your dreams'' Brijmohan

Lall Munjal is often fond of saying. The founder and patriarch of

the $ 2.8 billion Hero Group is your classic first generationentrepreneur. He is a man who started small, dreamt big and

used a combination of grit and perseverance to create one of the

country's largest corporate groups and the World's No.1 Two

Wheeler Company.

Instinctive from a young age, Brijmohan Lall made a

rather unusual start in life. Around the time when the freedom

movement in India was taking shape in the late 1920s, he walkedinto a newly opened Gurukul (Indian heritage school) near his

home in Kamalia (now in Pakistan). He was only six years old

then.

Thus began an extraordinary tale of courage and

perseverance. Brijmohan began his business story after partition

in 1947, when he and his brothers relocated to Ludhiana. The

family set up a company that provided poor people with basic

transport (cycles). Three decades later, as India evolved; he

added a second crucial chapter - which visualized affordable and

technologically superior transport to millions of middle class

Indians. The rest is history.

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AWARDS:

Awards & Recognitions2008NDTV Profit Business

Leadership Award 2008 - Hero Honda Wins the Coveted

"NDTV Profit Business Leadership Award 2008.

Top Gear Design Awards 2008 - Hunk Bike of the Year

Award

NDTV Profit Car India & Bike India Awards - NDTV

Viewers

Choice Award to Hunk in Bike category

India Times Mindscape and Seville Row (A ForbesGroup

Venture) Loyalty Awards - Customer and Brand Loyalty

Award in Automobile (two-wheeler) sector

Asian Retail Congress Award for Retail

Excellence (Strategies and Solutions of business

innovation and

Transformation) - Best Customer Loyalty Program in

Automobile

Category

NDTV Profit Car India & Bike India Awards - Bike

Manufacturer of the year

Overdrive Magazine - Bike Manufacturer of the year TNS

Voice

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Of the Customer Awards: No.1 executive motorcycle

Splendor

NXG

No.1 standard motorcycle CD Deluxe

No. premium motorcycle CBZ Extreme

2007The NDTV Profit Car India & Bike India Awards 2007 in

The following category: 1.Overall "Bike of the Year" - CBZ

Extreme

2."Bike of the Year" - CBZ X-tremens (up to 150 cc

Category)

3."Bike Technology of the Year" - Glamour PGM

FI.

2006 No. 1 in automobile industry by TNS Corporate

Social Responsibility Award.

Hero Honda Splendor rated as India's most

Preferred two-wheeler brand at the Awaaz Consumer

Awards 2006.

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DATA ANALYSIS

LIQUIDITY RATIO:

1) Current Ratio

2) Acid test Ratio or Quick Ratio

LEVERAGE RATIO:

1) Debt equity ratio

2) Proprietary ratio

ACIVITY RATIO:

1) Fixed asset turnover ratio

2) Inventory turnover ratio

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PROFITABILITY RATIO:

1) Gross profit ratio

2) Operating ratio

1. CURRENT RATIO:

26

2009 2008 2007

0.46 0.48 0.56


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Interpretation:

The liquidity position of the company is not satisfactory

because it is not reached the ideal ratio 2:1. The company should

increase the current assets and decrease the current liabilities.

2. QUICK RATIO :

2009 2008 20070.31 0.31 0.39

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Interpretation:

The liquidity position of the company is not satisfactory

because the ratio is decrease and not reached the ideal ratio 1:1

the company should increase quick assets such as cash and bank

balance and decrease the current liabilities.

3. Debt Equity Ratio:

2009 2008 20070.02 0.04 0.06

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Interpretation:

This ratio is the indicative of strong financial position of

business. The higher the ratio, the better it is but the company

should increase the shareholders funds.

5. Inventory Turnover Ratio:

2009 2008 2007

47.53 42.82 47.53

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Interpretation:

The company should control the inventory turnoverbecause it is fluctuating.

6. Fixed Assets Turn Over Ratio:

2009 2008 2007

5.34 5.89 6.01

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Interpretation:

The ratio is decreasing from year to year and we should

increase the sales up to the maximum level and we should use

the fixed assets up to full 100% capacity.

7. Gross Profit Ratio:

2009 2008 2007

12.75% 11.67% 10.72%

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Interpretation:

The profitability position of the company is satisfactory

because of the Gross profit ratio is increasing from year to year

but it is not enough. The company should control the cost of

goods sold expenses and increase the sales.

8. Operating Ratio:

2009 2008 2007

14.22% 13.22% 12.13%

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Interpretation:

The company had controlled the operating expenses

thats Why the ratio is decreased, the lower the ratio the better it

is, the company should continue this performance in the future

also. It is satisfactory.

RESEARCH METHODOLOGY

The different type of methods, tools and techniques

used for research are known as research methodology. It is the

path adopted by the researcher to complete research project.

Hence it plays a vital role in the completion of the project.

Source of information:

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There are two sources by which information was

collected.

1. Primary data:Primary source of information were not their as the

company is not situated in Nagpur therefore the first hand

information about the company not possible.

2. Secondary data:

The major source of secondary information was

financial statement of hero Honda company limited annual report

of the balance sheet and its website.

LIMITATIONS OF RATIO ANALYSIS

Ratio analysis is as already mentioned a widely used

tool of financial analysis. It is because ratios are simple and easy

to understand. But they must be used very carefully. They are

suffering from various limitations.

1. Changes in the accounting practice between the two years

may render the comparison difficult.

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1. Liquidity ratio:

The current ratio is slightly lower than the ideal ratio. It

shows the companys ability to meet its current requirement.

In overall the liquidity position of the company is good

which shows the managerial efficiency in utilizing current assets

in the business.

2. Activity ratio:

The increasing inventory turnover ratio and fixed

turnover ratio highlights the overall efficiency of the business

activities and management in making productive utilization of

assets and capital of the company so that there is better

profitability during the period.

3. Leverage ratio:

The leverage position of the company is good in short

term as well as in long term position of the company due to debt

equity ratio and proprietary ratio in previous year.

4. Profitability ratio:

The gross profit of the company is increasing, which is

positive sign for the company. The overall profitability of the

company is satisfactory during the study period.

Therefore the overall financial position of the company

is good on the basis of leverage, liquidity, activity and

profitability ratio.

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RECOMMENDATION

After analysis and interpretation of the financial

statement of hero Honda company the following are the

suggestions for the betterment of company.

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1. Fixed assets of company should be improved because

return gain on the assets is lower so improvement on

assets will improve its position.

2. The company should minimize external financing to lowerthe interest burden which will help to enhance the

shareholder ability to earn and will lower the risk for them.

3. The company should try and increase its dividend payout

ratio to the shareholder. Increasing these ratios will

definitely help the market share price to shoot up.

4. The company should utilize the reserve account in the form

of dividend and bonus so that it will increase the marketing

value of the company.

5. The company should increase there current assets and

decrease current liability because there current liability is

more.

6. As the liquidity position of the company is less than the

ideal ratio so the company should think on that.

BIBLIOGRAPHY

BOOKS:

Management accounting R.S.N. PILLAI and BAGAVATHI

Financial management M.Y. KHAN and P.K. JAIN

WEBSITE:

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Google search.com

Hero Honda.com

ANNEXURE

Profit & Loss Account

(Rs in

Crore)

Mar '

09

Mar '

08

Mar '

07

Income

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Mar '

09

Mar '

08

Mar '

07

Operating income12,325.

38

10,345.

01

9,905.

95

Expenses

Material consumed8,820.0

5

7,479.5

0

7,252.

46

Manufacturing expenses 427.78 360.66 332.62

Personnel expenses 448.65 383.45 353.81

Selling expenses 582.16 503.62 507.10

Administrative expenses 293.72 250.01 258.00

Expenses capitalized - - -

Cost of sales

10,572.

36

8,977.2

4

8,703.

99

Operating profit1,753.0

2

1,367.7

7

1,201.

96

Other recurring income 108.56 88.85 83.73

Adjusted PBDIT1,861.5

8

1,456.6

2

1,285.

69

Financial expenses 13.04 13.47 13.76

Depreciation 180.66 160.32 139.78

Other write offs - - -

Adjusted PBT1,667.8

8

1,282.8

3

1,132.

15

Tax charges 499.70 442.40 388.21

Adjusted PAT1,168.1

8840.43 743.94

Nonrecurring items 113.58 127.45 113.95

Other non cash

adjustments- - -

Reported net profit1,281.7

6967.88 857.89

Earnings before

appropriation

3,303.5

3

2,562.6

6

2,081.

94

Equity dividend 399.38 379.41 339.47

Preference dividend - - -

Dividend tax 67.87 64.48 57.69

Retained earnings2,836.2

8

2,118.7

7

1,684.

78

41


42/44

Balance sheet(Rs Crore)

Mar '

09

Mar '

08Mar ' 07

Sources of funds

Owner's fund

Equity share capital 39.94 39.94 39.94

Share application money - - -

Preference share capital - - -

Reserves & surplus3,760.

81

2,946.3

02,430.12

Loan funds

42


43/44

Mar '

09

Mar '

08Mar ' 07

Secured loans - - -

Unsecured loans 78.49 132.00 165.17

Total 3,879.

24

3,118.2

42,635.23

Uses of funds

Fixed assets

Gross block2,516.

27

1,938.7

81,800.63

Less : revaluation reserve - - -

Less : accumulated depreciation 942.56 782.52 635.10

Net block1,573.

71

1,156.2

61,165.53

Capital work-in-progress 120.54 408.49 189.92

Investments3,368.

75

2,566.8

21,973.87

Net current assets

Current assets, loans & advances

1,022.

14 942.00 914.65

Less : current liabilities & provisions2,205.

90

1,955.3

31,608.74

Total net current assets

-

1,183.

76

-

1,013.3

3

-694.09

Miscellaneous expenses not written - - -

Total3,879.

24

3,118.2

42,635.23

Notes:

Book value of unquoted investments3,305.

14

2,357.6

21,809.12

Market value of quoted investments 40.55 209.20 157.85

Contingent liabilities 100.54 56.37 165.59

Number of equity shares outstanding

(Lacs)

1996.8

8

1996.8

8

1996.88

43


44/44

Mar '

09

Mar '

08Mar ' 07

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