Sintex Financial

PREFACE
As a part of the course curriculum, the first year M.B.A. students are required to prepare a financial project report. The objective behind preparing this project report is to relate the management subjects taught in the classroom to their practical application.
The preparation of this project report is based on financial analysis of annual reports of 5 consecutive years for a public limited company using Ratio Analysis, Common Size Statements and other financial tools.
The scope of the project report is limited to the study of the financial position of the company on the basis of the published data available.
Our work in this project is, therefore, a humble attempt toward this end.
In spite of our best efforts there may be errors of omissions and commissions, which may please be excused.
1 S .V. INSTITUTE OF MANAGEMENT
ACKNOWLEDGEMENT
Through this Acknowledgement we express our sincere gratitude towards all those people who have helped us in the preparation of the project, which has been a learning experience.
We would like to thank the Director, Prof. Bhavin Pandya, the faculty, the computer lab instructor and the librarian of S. V. Institute of Management for their support.
Finally, we express our sincere to Prof. Nikunj Patel and Prof. Kalpesh Prajapati who guided us throughout the project and gave us valuable suggestions and encouragement. A success is sustained by the hands of more than one person directly or indirectly. We are grateful to our parents & friends for their love and moral support. At last but not the least, we are grateful to the almightily God, who has created this beautiful World.
Purvi Rathi Anushree Karani

(MBA - 1)
EXECUTIVE SUMMARY
Executive Summery is an important part of the project in which have we included all the information of my project in a short manner. My project is on the titled financial analysis of SINTEX INDUSTRIES LTD.
About Company
Sintex Industries Limited was earlier known as The Bharat Vijay Mills Ltd. It is an Indian-based Company which operates in two business divisions textiles and plastics. In the area of textiles, they had been pioneers in high value fabrics. Its Plastics Division started in the year 1975 and today they have most diversified manufacturing capabilities in plastic processing in the world, with 10 plants spread across the country, more than twelve manufacturing processes under one roof, having more than 500,000 Sq. meter area and a more than 1000 strong work force. The plastic division has a huge range of products with numerous applications. The products manufactured by the Company in plastic segment include prefabs, monoliths, storage tanks, containers, doors, windows and many more. In the textiles segment the Company manufactures mens structured shirting fabrics, yarn-dyed corduroy and cotton yarn-based corduroy, and fabric for ladies wear also. About Analysis Objectives To find out various critical aspects of the financial statements. To analyze and interpret the financial strength of the company. To know about trends of profit, sales expenditure, net worth, fixed assets and various other trends of the profit & loss and balance sheet statements. And the last and foremost thing is to fulfil the requirement of the course. Analysis: We have calculated various ratios such as liquidity ratios, profitability ratios, solvency ratios, turnover ratios to find out the financial performance and soundness of the company. We have also compared the balance sheet and profit & loss account of the company for last 5 years.
CONTENT
Chapter No.

Particulars Preface Acknowledgment Executive summary Chapter 1

Brief overview of the industry Introduction Of The Company History Of The Company Founder & Leaders Objectives, vision & mission Organizational Design Production Marketing Personnel
Page No.
1 2 3 6 7 7 9 10 11 15 21 26
2 3 4 5 6 7
Ratio Analysis
Chapter 2
Comparative Balance Sheet And Analysis Of Balance Sheet 29
Chapter 3
Comparative Profit & Loss Account And Analysis Of Profit & Loss Account 32 35 41 46 49
Chapter 4
Common Size Statements and its Analysis
Chapter 5
Trend Analysis (Index Analysis)
Chapter 6
Analysis of Cash flow Statement
Chapter 7 Chapter 8
Finding and Suggestions 78 80 90 95
8 9
Other Topics
Chapter 9
Annexure Biblliography
CHAPTER 1: INTRODUCTION
A.BRIEF OVERVIEW OF THE INDUSTRY: Plastics, is one of the fastest growing industries in India. Plastics have a vital role to play. Indian Plastics Industry is expanding at a phenomenal pace. The plastic industry of India has a big market potentiality and is gradually prospering. This potentiality of the market will surely actuate the entrepreneurs to invest in this industry. Entrepreneurs are trying to provide high quality plastic products, so that it becomes a booming industry. Many companies from various sectors such as automobiles, electronics, telecommunications, food processing, packing, healthcare etc. have set-up large manufacturing bases in India. Therefore, demand for plastics is rapidly increasing and soon India will emerge as one of the fastest growing markets in the world. SOME ASSOCIATED INDUSTRIES: The potentiality of plastic industry India propels other associated industries to grow side by side. One of such growing industry is petrochemical industry. Both these industries are reciprocal to each other. The petrochemical industry facilitates the plastic industry to produce plastic products that will meet the domestic demand as well as that of the overseas market. FINISHED PRODUCTS OF PLASTIC INDUSTRY INDIA: The plastic processing industry consist of over 30,000 units which are producing a wide range of plastic products through the process of injection moulding, then blow moulding, extrusion, and finally calendaring. End user markets: These are the plastic products basically used for domestic purposes. Some of the end user plastic products are plastic balls, plastic bags, polypropylene bags, polyethylene bags, plastic barrels, plastic caps, plastic bottles, plastic baskets, plastic basins, plastic basins, plastic bowls. Appliances: These are basically the plastic mechanical components like plastic bearings, plastic bellows, plastic belting etc. Some other industries, where plastic materials are used are automotive, building & construction, electrical and electronics, industrial, medical, .packaging, transportation etc. STRATEGIES OF PLASTIC INDUSTRY INDIA: The government of India is trying to set up the economic reforms to elevate and boost the plastic industry by joint venturing, foreign investments. PROSPECT OF PLASTIC INDUSTRY INDIA: Plastic industry India is symbolizing a promising industry and at the same time creating new employment opportunities for the people of India. The per capita consumption of plastic products in India is growing and is moving towards 8% GDP growth.
B. HISTORY OF THE COMPANY: Sintex Industries Limited was earlier known as The Bharat Vijay Mills Ltd. It is an Indian-based Company which operates in two business divisions textiles and plastics. In the area of textiles, they had been pioneers in high value fabrics. Its Plastics Division started in the year 1975 and today they have most diversified manufacturing capabilities in plastic processing in the world, with 10 plants spread across the country, more than twelve manufacturing processes under one roof, having more than 500,000 Sq. meter area and a more than 1000 strong work force. The plastic division has a huge range of products with numerous applications. The products manufactured by the Company in plastic segment include prefabs, monoliths, storage tanks, containers, doors, windows and many more. In the textiles segment the Company manufactures mens structured shirting fabrics, yarn-dyed corduroy and cotton yarn-based corduroy, and fabric for ladies wear also. They have also created extensive finishing, assembling, metal fabrication and concrete products facilities. Combination of such varied capabilities along with their state-of-the-art design and tool room facilities enables them to give vast array of products and solutions. Established in India in 1931, Sintex has a proven track record of pioneering innovative concepts in plastics and textile sectors in India and an uninterrupted 77 years of dividend payment to its shareholders. They strive to develop products that no one else had made before. Pioneers in the development of innovation in building products, custom moulding and textiles, the Sintex group creates best in class products that deliver better utility and value to its customers. It is Sintexs quest to deliver quality products at affordable prices. Recently, they have even expanded their global footprints by acquisitions to offer total solutions to their customers. Their application driven Research & Development team is constantly on the look-out to come up with products that can be made by integrating different materials with Custom Moulded solutions.
HISTORY OF SINTEX INDUSTRY LIMITED: 1931-74 Incorporated as The Bharat Vijay Mills Established composite textile mill in Kalol, Gujarat
Limited
in
June
1931
1975-90 Commenced manufacturing of plastic moulded polyethylene liquid storage tanks including water tanks. Introduced new plastic products like doors, window frames and pallets Plastic Sections for Conversion into Partitions, False Ceilings, Wall panelling, Cabins, Cabinets, Furniture etc. 1995 Renamed to Sintex Industries Limited Commenced manufacturing of SMC moulded products, pultruded products, resin transfer moulded products and injection moulded products Modernization and expansion of the textile unit Commenced structured yarn dyed business 2000-Till date Alliance with European design houses and a UK based textile marketing company Commenced production of pre-fabricated structures for classrooms, booths kiosks and office rooms Acquisition of 74% stake in Indian subsidiary of Zeppelin Mobile systems Ltd.,Germany Entered the housing sector with monolithic construction First international acquisition by acquiring 81% stake in Wausaukee Composites Inc.,USA. Acquired 100% stake in Nief Plastic SA, a French company Acquired automotive business division of Bright Brothers Limited Wausaukee acquired 100% stake of its competitor, Nero Plastics Inc., USA Zeppelin acquired Digvijay Communications and Network Pvt. Ltd., Indore and became the total solution provider for telecom sector
C. INTRODUCTION TO THE FOUNDING MEMBERS: Sintex Industry Ltd. which was earlier known as Bharat Vijay Mills was established in 1931. Its plastic division was established in 1975. The chairman of the industry is Mr Dinesh P Patel who started the industry. The vice chairman of the industry is Mr Arun P Patel. They are the owners of the industry. Sintex has a proven track record of pioneering innovative concepts in plastics and textile sectors in India. They are the oldest in manufacturing plastic products and are also the pioneer of the industry, so they have the brand image and Sintex is their brand name. About Mr. Dinesh Patel:
He is the Chairman of Sintex Industry Limited. He has done his B.Sc from Bombay University. He has more than 5 decades of work experience. About Mr. Arun Patel: He is the Vice-Chairman of Sintex Industry Limited. He has also done his B.Sc from Bombay University. He has more than 5 decades of work experience.
D. PHILOSOPHY/MOTTO/OBJECTIVES OF THE COMPANY: Objectives are goals or aims which the management wishes the organisation to achieve. Any industry first has to decide objectives. Objectives are helpful to achieve target and with the help of them company can decide right direction. There are two types of objectives i.e. primary objective and secondary objective. It is generally believed that business activity is carried out only for profit. To a certain extent it has been found that successful business cannot afford to keep profit as its sole objective. So they have other objectives which are secondary objective which are equally important. OBJECTIVE OF SINTEX INDUSTRIES LIMITED: Sintex Industries Limited is a multi-faceted activity industry. They are doing flexible thinking and actively thinking. They constantly want to reach out for new height of excellence. Their aim is to expand the business by establishing a presence in global markets while at the same time consolidating in the Indian market too. They are happily accepting every challenge that comes in their ways. They are constantly involved in achieving consumer satisfaction through total quality excellence and by providing competitive value to their customers. MOTTO OF SINTEX INDUSTRIES LIMITED: The Way We Are Of Sintex; By Sintex, From Sintex Active Thinking VISION OF SINTEX INDUSTRIES LIMITED: To achieve global presence in textile business through continuous product and technical innovation, customer orientation and a focus on cost effectiveness, quality and services.
ORGANISATIONAL DESIGN
I.) TOP MANAGEMENT: The top level management is known as the upper level of organisation. Top managers are responsible for making organisation-wide decisions and establishing the plans and goals for the organisation. Top management consists of Chief Executive Officer, Board of Directors, President, Executive Vice President, Managing Director, Chair person, Chief Operating Officer. Top Management Of Sintex Industries Limited is..... Chairman : Dinesh Patel B.sc from Bombay University More than 5 decades of work experience Vice-chairman : Arun P Patel B.sc from Bombay University More than 5 decades of work experience Managing directors : Rahul A Patel Bachelors degree in Communications MBA from USA More than 24 years experience in textile and plastic Amit D Patel Bachelors degree in Commerce MT from USA 18 years of experience in textile, chemical and plastic B.Sc (Hons) S B Dangayach
P.G.D.B.A. from IIM, Ahmedabad 3 decades of experience in plastics
Sintex Group Of Companies Is Managed By Independent Professionals Are: President CEO : David Lisle Gilles Nief Indru G Advani Sandeep Harsh Neelesh Jain
CEO
II.) HIERARCHY:
Higher level
Dinesh Patel (Chairman)
Middle level
Arun Patej (ViceChairman)
S B Dangayach (Managing Director)
Lower level
SBU 1- Mr. Sanjiv Roy
Building related products and industries and electric related
SBU 2- Mr. S Venktachalam
III.) ORGANISATIONAL STRUCTURE AND CHART:
IV.) DEPARTMENTALIZATION AND ITS BASIS: PRODUCT DEPARTMENTALISATION: In Sintex Industry Ltd. there is departmentalisation on the basis of product as they have a huge range of products. They are manufacturing more than 50 types of products. CUSTOMER DEPARTMENTALIZATION: Sintex has customer departmentalization as it manufactures the products according to the customers need because main aim of the industry is to provide quality products at affordable prices. GEOGRAPHICAL DEPARTMENTALIZATION: The plant of Sintex is located in Kalol near Gandhinagar in Gujarat. As Kalol is a village and it is not highly developed so it is beneficial for the industry. PROCESS DEPARTMENTALIZATION: Sintex Industry Ltd. also has departmentalization on the basis of process into various departments like..... Production unit Packaging department Quality control unit Personnel department In addition to this Sintex Industry Ltd. also has departmentalisation on the basis of time, in which working hours for workers are fixed for specific period. In Sintex they have two shifts for workers i.e. morning- 7 a.m. to 4 p.m. and evening- 4 p.m. to 11 p.m.
PRODUCTION
I.) PLANT LOCATION: The plant of Sintex Industry Ltd. is located in Kalol (N.Gujarat) near Gandhinagar. The address of the plant location is as under. ADDRESS: SINTEX INDUSTRIES LIMITED Plastic Division NEAR SEVEN GARNALA KALOL (N. GUJARAT) 382 721. INDIA Phone: 253500, Fax: (02764) 253800 Email: plastic@sintex.co.in HEAD OFFICE OF SINTEX INDUSTRY LIMITED
BRANCHES OF SINTEX INDUSTRIES LIMITED AHMEDABAD BANGALORE CHANDIGARH CHENNAI KOLKATA LUCKNOW NEW DELHI PUNE SECUNDERABAD TRIVANDRUM
BHOPAL JAIPUR MUMBAI RANCHI
FACTORS AFFECTING PLANT LOCATION: There are so many factors affecting plant location. Factors are categorized into two parts i.e. primary data and secondary data. Primary Factors includesRAW-MATERIAL: The basic raw material used by Sintex Industry Ltd. is powder which is in granule form. The major suppliers of raw material for Sintex are Reliance, Haldia and IPCL. MARKET: Sintex is located in Kalol near Gandhinagar which is a good place for manufacturing products. Sintex is a national player so it has a network in internal as well as global market. TRANSPORT: As Sintex is located in Kalol, it has cheap transportation cost. LABOUR: The location of Sintex is in Kalol which is not highly developed as it is a village. So the unskilled labourers are easily available over there which is beneficial for the industry as they are employed at very low wages. There are Secondary Factors that may affect the industry which are..... Land Climate Political and strategically considerations
II.) PRODUCT PORTFOLIO: Sintex leads in meaningful innovations and solutions. With their multifarious capabilities in the field of plastics, metals, concrete etc. they have created many path breaking products. They have an excellent design, engineering, marketing and manufacturing set up to offer many standard and custom products and solutions for satisfying needs anywhere in the world. Sintex produces a wide range of products. It produces 50 types of plastic products. The product portfolio of Sintex Industry Ltd. is as under. Sintex product range comprises the following: Product Category Prefabs Industrial 1. 2. 3. 4. 5. 6. 7. Products Name Prefabs For Schools BTS Shelters / Instrument Enclosures Prefabs For Housing Prefabs For Site Offices Bunk Houses Prefabs Toilets / Bathrooms Compound Wall (Prefabricated, Relocatable)
Industrial Product
1. Pallet Containers (Returnable Reusable Containers) 2. FRP Underground Petroleum Storage Tanks 3. Chemical Tanks 4. Uno Pallets 5. Intermediate Bulk Containers (IBC) 6. Supertuff Crates 7. Processing Trolleys 8. Mixing Tanks 9. Pallets 10. Racking Systems 11. Insulated Boxes 12. Open Mouth Packaging Drums 1. 2. 3. 4. 5. SMC Meter Boxes SMC Distribution Pillar Boxes SMC Distribution Boxes SMC Distribution Boards (DBS) SMC Pole Mounted Junction Boxes (Street Light Boxes) 6. FRP Straight Cross Arms (REC Design) 7. FRP V type Cross Arms (REC Design) 8. FRP Cable Trays 9. SMC Trench Covers 10. SMC Danger Notice Plates 1. Multi Bins
Electrical Product
Consumer
PICTURES OF PRODUCTS MANUFACTURED BY SINTEX INDUSTRY LIMITED:
BUILDING AND CONSTRUCTI ON
PREFABRICATED BUILDING
ELECTRICAL ENGINEERING
INTERIO RS
INDUSTRI AL
CONSUM ER
CUSTOM MOULDI NG
PALLE TS
OPEN MOUTH PACKAGING DRUMS
INSULATED BOXES
SINTEX WATER TANKS
CONTINOUS SANDWICH PANEL
MARKETING
4 Ps OF MARKETING. Marketing is a completely separate function that helps position products and services correctly so that sales can be made more effective. At the core of Marketing are the four Ps Price, Product, Promotion, and Place. Marketers adjust each of these components to arrive at a mix that the customer will prefer over competitors Diagram showing 4 Ps of management:
PRODUCT: The product is the full bundle of goods and services offered to the customer. This includes the appearance, functionality, and support or non-tangibles the customer will receive. The plastic segment of Sintex Industry Ltd. produces a wide range of plastic products that are used in every field i.e. in household, electrical industry, construction, consumer, etc. They produce more than 50 types of products. Some of the products that Sintex produces are as under: SMC Panel Tanks Prefabs for Anganwadis Wall paneling and false ceiling Septic Tanks Primary and integrated waste collection FRP Underground Water Storage Tanks Home and office furniture The above mentioned is a list of some products manufactured by the Sintex Industry and products are already shown in the portion of product portfolio. 22 S .V. INSTITUTE OF MANAGEMENT
PRICE: The price is the amount a customer pays for a product. The price of the products manufactured by Sintex Industry Ltd. is fixed according to market situation and the prices are fixed at a reasonable price so that everyone can afford it to buy. PLACE: This is where and how your product is distributed and sold. Will you sell it yourself, through a broker, or a distributor? If a service, do you deliver in person or through the internet or telephone? These all questions involves place. Place means distribution network of company. As Sintex Industry Ltd. is a national player, so it has a wide distribution network. Sintex has a strong presence in the European, American, African, and Asian markets including countries like France, Germany and USA. PROMOTION: Promotions are activities such as advertising, personal selling, and sales promotion which communicate the merits of the product and persuade target customers to buy it. Sintex Industry Ltd. carries out promotional activities like campus recruitments, seminars, conferences, advertisement on various websites or through some sources.
II.) TARGET CUSTOMERS Customer is the king of the market. Today customers are harder to please, they are smarter, more price conscious, more demanding, etc. Company has to spend considerable time and resources searching for new customers. For these company creates ads and places them in media, sends direct mail, etc. Market is more customers oriented. Market is operated according to customers tastes and preferences. Target customers are those customers who actually buy the products. Engineered structural plastic products supplied to Global OEMs, etc. Mainly Sintex deals with Government and Semi-government sectors, construction & building companies, households, agriculture, etc. So they all are the target customers of Sintex. The major clients of Sintex Industry Ltd. are ABB, Siemens, Eicher, Reliance energy, Reliance Infocomm, Larsen & Tourbo, UNICEF, WHO, CARE, Torrent Pharma, Cipla, Ranbaxy, GE Motors. Sintexs target customers are their competitors who are as under: - Grasim - Voltas - Century - Nava Bharat Ven - Prakash Ind - 3M India - Bombay Dyeing - Kesoram - Orient Paper
III.) PLACE: DISTRIBUTION NETWORK: A set of interdependent organisations involved in the process of making a product or service available for consumption on consumer is known as Distribution Network. Sintex Industry Ltd. has large distribution network in India and also outside India. The main office of the company is located at Kalol in Gujarat. They also work with Western and Southern part of the country. They have their presence in 9 countries across 4 continents. Sintex has a strong presence in the European, American, African, and Asian markets including countries like France, Germany and USA. IV.) PRICE: Price is the amount a customer pays for the product. The business increases or decreases their prices if other stores having the same product. Sintex is the pioneer for manufacturing of plastic products. They are producing high quality products at affordable price so that the consumers are happy with the products.
V.) PROMOTIONAL AND ADVERTISING CAMPAIGN: Advertising and promotions is bringing a service to the attention of potential and current customers. Advertising and promotions are best carried out by implementing advertising and promotions plan. The goals of the plan should depend very much on the overall goals and strategies of the organization. Sintex is promoting cost savings, new products and new ideas. Sintex promotes through various advertisements, news papers, various websites, campus recruitment, etc. VI.) COMPETITORS: Competitors are the other business entities that compete for resources as well as market. They offer substitute which attract our present customers. Competition may be direct and indirect. Competition shapes business. A study of the competitive scenario is essential for the marketer, particularly threats from competition. Competitors of SINTEX INDUSTRY LIMITED are as follows: - Grasim - Voltas - Century - Nava Bharat Ven - Prakash Ind - 3M India - Bombay Dyeing - Kesoram - Orient Paper VII.) EXPORTS: Sintex is an international player. They have their presence in 9 countries across 4 continents. Sintex has a strong presence in the European, American, African, and Asian markets including countries like France, Germany and USA.
PERSONNEL
I.) STRENGTH OF PERSONNEL DEPARTMENT: Personnel management is that phase of management, which deals with effective control, use of man power or human resources. Labour is the main factor of production. Sintex has almost more than 2500 employees. It is very important to have strength of employees for Sintex. Following are some of the strengths of Sintex Industry Ltd. They have internal audits. Management is most important for the industry, so they also have management meetings. As they are the leading company, it is important for them to have contract procedures. As they are selling high quality products, they also have product quality review.
II.) RECRUITMENT POLICY: Recruitment is the process of locating, identifying and attracting capable applicants to an organisation. As such Sintex has no specific recruitment policy, they generally have several sources of recruitment policy, which are as under: Internet Employee referrals Company website College recruiting Professional recruiting organizations
III.) TRAINING & DEVELOPMENT: The training is an act of increasing the knowledge and skill of a worker for doing a certain job. A skill thus acquired by the employee through training is thus an asset to the organisation and the employer. Sintex has a training institute i.e. ITI in Kubernagar. Generally they give training to the freshers and unskilled labourers so that the production process doesnt have any breakdown. IV.) REWARD SYSTEM: Many organisations provide rewards to their employees for their precious work contribution. The rewards may be in the form of incentives, gifts articles, and appretiational items like award for best employee, etc. These rewards may be given to employees at the end of the year in their annual meeting. By giving rewards to employees they feel that they are an important part of organisation and thereby they are motivated to work more efficiently. Sintex also gives rewards to their employees so that they are motivated.
CHAPTER 2:
COMPARATIVE BALANCE SHEET AND ANALYSIS OF BALANCE SHEET
COMPARATIVE BALANCE SHEET

PARTICALAR SOURCES OF FUNDS: Share Capital Share Warrants & Outstandings Total Reserves Shareholder's Funds Secured Loans Unsecured Loans Total Debts Total Liabilities APPLICATION OF FUNDS : Gross Block Less: Accumulated Depreciation Net Block Capital Work in Progress Investments Current Assets, Loans & Advances Inventories Sundry Debtors Cash and Bank Other Current Assets Loans and Advances Total Current Assets Less: Current Liabilities and Provisions Current Liabilities Provisions Total Current Liabilities Net Current Assets Miscellaneous Expenses not written off Deferred Tax Assets / Liabilities Total Assets Contingent Liabilities Book Value Adjusted Book Value 45.10 22.55 163.98 15.73 179.71 449.59 4.52 -61.95 1037.53 254.79 37.30 292.09 518.62 2.12 -72.37 1329.13 26.65 58.47 29.24 312.43 289.74 602.17 1690.47 1.15 -99.45 3048.58 304.10 107.75 53.87 289.79 291.31 581.10 1640.05 0.17 -130.69 3566.09 317.82 119.23 59.61 -152.15 4056.49 247.31 137.26 68.63 228.63 294.07 522.70 1927.36 86.28 150.67 355.35 0.00 36.99 629.29 145.54 213.04 385.30 0.00 66.83 810.71 162.93 476.70 1325.87 0.00 327.14 2292.64 444.73 2221.15 789.26 2450.06 181.15 495.80 1099.47 168.70 677.06 815.04 674.96 205.43 469.53 19.02 156.83 881.85 246.42 635.43 38.79 206.54 1079.02 295.06 783.96 242.68 429.77 1575.11 353.82 1221.29 197.38 637.89 1773.64 437.05 1336.59 136.75 807.94 19.73 5.41 429.73 454.87 359.53 223.13 582.66 1037.53 22.19 0.00 628.68 650.87 506.00 172.26 678.26 1329.13 27.10 50.53 1434.02 1511.65 636.15 900.78 1536.93 3048.58 27.10 12.00 1588.63 1627.73 791.99 1146.37 1938.36 3566.09 27.10 22.27 1832.75 1882.12 1058.72 1115.65 2174.37 4056.49 2006 2007 2008 2009 2010 (RS IN CRORES)
ANALYSIS
The share capital of the company has remained constant from 2007 to 2010. This means that the company has not issued any equity shares after 2006. Companys total reserves is showing increasing trend which is a good indicator of its performance. Total reserves consist of retained earnings and net profit. Total debts of the company shows an increasing trend which means that the interest burden on the company has been increasing which is not a good sign. Total debt consists of secured loans and unsecured loans. Till 2007 secured loans were than unsecured loans but after 2007 unsecured loans were more than secured loans. Company has been acquiring new assets every year which means that their production capacity is increasing. Companies investments are also showing an increasing trend which means that they are investing their money in the market. Inventories are showing increasing trend till 2009 but in 2010 it reduces by 7%. Since the companys debtors are increasing year by year, it means that either the companys collection mechanism is not sound or it allows high credit period o its debtors. Although companys debtors are increasing, its cash balance is also shoeing an increasing trend which means that the company is earning profit from other sources as well. Current liabilities of the company are not consistent in last five years and there are lot many fluctuations.
CHAPTER 3:
COMPARATIVE PROFIT AND LOSS ACCOUNT AND ANALYSIS OF PROFIT AND LOSS ACCOUNT
COMPARATIVE PROFIT & LOSS ACCOUNT

PARTICULAR INCOME : Gross Sales Less: Sales Returns Less: Excise Duty Net Sales EXPENDITURE : Increase/Decrease in Stock Raw Material Consumed Power & Fuel Cost Employee Cost Other Manufacturing Expenses General and Administration Expenses Selling and Distribution Expenses Miscellaneous Expenses Less: Expenses Capitalised Total Expenditure Operating Profit (Excl OI) Other Income Operating Profit Interest PBDT Depreciation Profit Before Taxation & Exceptional Items Profit Before Tax Provision for Tax Profit After Tax Adjustments to PAT Profit Balance B/F Appropriations Equity Dividend % Earnings Per Share Adjusted EPS 110.88 202.90 44.00 9.33 4.66 177.80 308.38 48.00 11.77 5.88 280.80 497.13 50.00 15.97 7.98 456.16 722.87 55.00 19.68 9.84 674.17 947.87 60.00 20.20 10.10 709.14 144.29 29.79 174.08 29.09 144.99 30.68 114.30 114.30 22.29 92.02 900.47 217.29 26.70 243.99 40.99 203.00 41.47 161.53 161.53 30.95 130.58 1311.78 343.92 44.56 388.48 56.25 332.23 51.70 280.53 280.53 64.20 216.33 1510.11 373.30 94.73 468.03 63.97 404.06 62.40 341.66 341.66 74.95 266.71 1630.63 379.92 96.91 476.83 51.32 425.51 84.03 341.48 341.48 67.78 273.70 6.89 510.54 34.47 32.70 58.70 41.88 20.80 3.17 -37.47 695.40 46.63 43.17 75.56 55.60 20.25 1.33 -20.76 1025.08 58.79 57.69 94.15 71.78 24.01 1.04 -20.91 1159.22 70.80 70.82 93.75 72.63 30.72 33.08 14.01 1272.89 59.86 77.44 104.17 68.43 32.98 0.85 60.56 853.42 95.04 1117.76 134.59 1655.70 98.63 1883.41 93.01 2010.55 913.98 1212.80 1790.29 1982.04 2103.56 2006 2007 2008 2009 2010 (RS IN CRORES)
ANALYSIS
Net sales of the company are increasing since last five years which is a very good indicator for the company. Power and fuel cost of the company is almost constant and does not show any major fluctuations. Employee cost is also increasing each year which increases companys total manufacturing expenses. Companys administrative expenses have shown increase of 63% from 2006 to 2010. Companys selling and distribution expense have increased about 58% which are less than the administrative expenses. Company is able to control its miscellaneous expenses as it is showing decreasing trend. Companys interest income is also showing increasing trend. As assets of the company are increasing it directly affect the depreciation and depreciation of the company also increases year by year. Companys equity dividend percentage from Rs 44% to 60% that is almost 150%. Companys earnings per share is also increasing which means it leads to wealth maximization of shareholders.
CHAPTER 4: COMMON SIZE STATEMENTS
COMMON SIZE STATEMENT OF BALANCE SHEET

PARTICULARS SOURCES OF FUNDS: Share Capital Share Warrants & Outstandings Total Reserves Shareholder's Funds Secured Loans Unsecured Loans Total Debts Total Liabilities APPLICATION OF FUNDS : Gross Block Less: Accumulated Depreciation Less: Impairment of Assets Net Block Lease Adjustment A/c Capital Work in Progress 2006 2007 2008 2009 (RS IN CRORES) 0.89 1.66 47.04 49.59 20.87 29.55 50.41 100 35.39 9.68 0.00 25.72 0.00 7.96 0.00 0.00 14.10 0.00 5.34 15.64 43.49 0.00 10.73 75.20 0.00 10.25 9.50 19.75 55.45 0.04 -3.26 100 0.76 0.34 44.55 45.64 22.21 32.15 54.36 100 44.17 9.92 0.00 34.25 0.00 5.53 0.00 0.00 17.89 0.00 5.08 13.90 30.83 0.00 12.47 62.29 0.00 8.13 8.17 16.30 45.99 0.00 -3.66 100 2010
1.90 0.52 41.42 43.84 34.65 21.51 56.16 100 65.05 19.80 0.00 45.25 0.00 1.83 0.00 0.00 15.12 0.00 8.32 14.52 34.25 0.00 3.57 60.65 0.00 15.80 1.52 17.32 43.33 0.44 -5.97 100
1.67 0.00 47.30 48.97 38.07 12.96 51.03 100 66.35 18.54 0.00 47.81 0.00 2.92 0.00 0.00 15.54 0.00 10.95 16.03 28.99 0.00 5.03 61.00 0.00 19.17 2.81 21.98 39.02 0.16 -5.44 100
0.67 0.55 45.18 46.40 26.10 27.50 53.60 100 43.72 10.77 0.00 32.95 0.00 3.37
Investments Current Assets, Loans & Advances Inventories Sundry Debtors Cash and Bank Other Current Assets Loans and Advances Total Current Assets Less: Current Liabilities and Provisions Current Liabilities Provisions Total Current Liabilities Net Current Assets Miscellaneous Expenses not written off Deferred Tax Assets / Liabilities Total Assets
19.92 0.00 4.16 16.69 20.09 0.00 19.46 60.40 0.00 5.64 7.25 12.89 47.51 0.00 -3.75 100
Application of Funds
ANALYSIS: Contribution of total current assets in the total assets is 42% in 2006, which slightly decreased in 2007 which was 40%. It increased in 2008 up to 55% and again it decreased in 2010 by 47%. Current assets includes debtors, inventories, cash etc. Contribution of total current liabilities in the total liabilities is 12% in 2006, which slightly increased in 2007 which was 14%. Then slightly changes were there. Contribution of net block in the total assets is 11% in 2006 and 10% in 2007. It significantly decreased in 2008 up to 19% and again it increased in 2009 by 26% and 25% in 2010. In last two years company has acquired assets and expand its production capacity. Contribution of investments in the total assets is 11% in 2006, and 10% in 2007 & 2008.then it increased in 2009 & 2010 by 13% & 15% respectively.
COMMON SIZE STATEMENT OF PROFIT AND LOSS ACCOUNT

PARTICULARS 2006 2007 2008 (RS IN CRORES) INCOME : Gross Sales Less: Inter divisional transfers Less: Sales Returns Less: Excise Duty Net Sales EXPENDITURE : Increase/Decrease in Stock Raw Material Consumed Power & Fuel Cost Employee Cost Other Manufacturing Expenses General and Administration Expenses Selling and Distribution Expenses Miscellaneous Expenses Less: Expenses Capitalised Total Expenditure Operating Profit (Excl OI) Other Income Operating Profit Interest PBDT Depreciation Profit Before Taxation & Exceptional Items Exceptional Income / Expenses Profit Before Tax Provision for Tax Profit After Tax 0.70 63.31 2.98 3.85 5.18 3.40 1.64 0.04 0.00 81.10 18.90 4.82 23.72 2.55 21.16 4.18 16.98 0.00 16.98 3.37 13.61 -0.06 3.22 0.20 0.20 0.26 0.20 0.09 0.09 0.00 4.20 1.04 0.26 1.30 0.18 1.12 0.17 0.95 0.00 0.95 0.21 0.74 -1.25 61.91 3.55 3.48 5.69 4.34 1.45 0.06 0.00 79.23 20.77 2.69 23.46 3.40 20.07 3.12 16.94 0.00 16.94 3.88 13.07 -3.35 62.21 4.17 3.86 6.76 4.97 1.81 0.12 0.00 80.56 19.44 2.39 21.83 3.67 18.16 3.71 14.45 0.00 14.45 2.77 11.68 0.81 59.82 4.04 3.83 6.88 4.91 2.44 0.37 0.00 83.09 16.91 3.49 20.40 3.41 16.99 3.60 13.39 0.00 13.39 2.61 10.78 104.63 0.00 0.00 4.63 100.00 105.24 0.00 0.00 5.24 100 108.13 0.00 0.00 8.13 100 108.50 0.00 0.00 8.50 100 107.10 0.00 0.00 7.10 100 2009 2010
ANALYSIS OF COMMON SIZE STATEMENT The contribution of gross sales to net sales was nearly same in all the year it was near
about 107 to 104% over 5 years and excise duty has increased 2006 to 2008 and for last two years it has decreased which is good for the company.
Contribution of total expenditure to net sales is around 80% to 83% over 5 years.
Which simply means that company is able to generate profit by 20% to 17% in last 5 years and because of this it can able to expand its operations. Major portion increase in total expenditure was raw material consumed.
Contribution of depreciation to net sales was 4.18% in 2006 and it significantly

decreased in 2007 and it was 0.17% only. After that it increased due to acquisition of assets by the company.
Profit before tax is around 17% in 2006 and it highly decreased in 2007 and it was
only 0.95% and it again increased in 2008 and then it was decreasing in 2009 and 2010.
Thus we can say that here 2007 was not a good financial year for the company
because profit and sales of the company has significantly decreased.
CHAPTER 5: TREND ANALYSIS
TREND ANALYSIS OF BALANCE SHEET

PARTICALAR SOURCES OF FUNDS: Share Capital Share Warrants & Outstandings Total Reserves Shareholder's Funds Secured Loans Unsecured Loans Total Debts Total Liabilities APPLICATION OF FUNDS : Gross Block Less: Accumulated Depreciation Net Block Capital Work in Progress Investments Current Assets, Loans & Advances Inventories Sundry Debtors Cash and Bank Other Current Assets Loans and Advances Total Current Assets Less: Current Liabilities and Provisions Current Liabilities Provisions Total Current Liabilities Net Current Assets Miscellaneous Expenses not written off Deferred Tax Assets / Liabilities Total Assets Contingent Liabilities Book Value Adjusted Book Value 2006 2007 2008 2009 (RS IN CRORES) 137.34 934.72 333.70 332.32 176.94 403.70 263.78 293.83 137.34 221.98 369.68 357.84 220.29 513.77 332.68 343.71 2010
100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
112.46 0.00 146.30 143.09 140.74 77.20 116.41 128.11
137.34 411.96 426.48 413.77 294.48 500.00 373.18 390.98 262.78 212.75 284.67 718.87 515.18 195.52 449.36 229.37
130.65 159.86 233.36 119.95 143.63 172.23 135.33 166.97 260.11 203.91 1275.72 1037.59 131.70 274.04 406.75 168.68 141.39 108.43 180.65 128.83 188.83 316.38 373.12 209.95 329.06 309.41
884.32 1202.19 2133.53 364.32 352.96 389.33
100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
155.38 190.53 176.73 139.43 237.08 1841.62 1851.60 1869.14 162.54 335.08 323.36 290.86 115.36 376.01 364.79 428.70 46.95 116.82 128.11 129.65 129.65 25.47 160.53 293.83 238.91 238.91 3.76 210.96 343.71 264.37 264.37 0.00 245.60 390.98 304.34 304.34
1400 1200 1000 800 600 Investments 400 Share Capital 200 0 2006 2007 2008 YEARS 2009 2010 Total Current Liabilities Total Current Assets
ANALYSIS
Above graph shows the trend analysis of share capital, investments, total current assets, and total current liabilities over 5 years. Share capital has remained constant since last 3 years, it has increased 37% from 2006 to 2010. Investments has increased about 31%, 174%, 306%, and 415% in years 06-07, 07-08, 08-09, 09-10 respectively. Total current assets has increased about 28%, 264%, 253%, and 289% in years 06-07, 07-08, 08-09, 09-10 respectively. Though current assets are increasing we cannot say that the company is performing well because debtors are increasing at a higher rate than the cash. Total current liabilities has increased about 62%, 235%, 223%, and 190% in years 0607, 07-08, 08-09, 09-10 respectively. Total current liabilities include provisions which are increasing at a alarming rate.
TREND ANALYSIS OF PROFIT &LOSS ACCOUNT

PARTICULAR INCOME : Gross Sales Less: Sales Returns Less: Excise Duty Net Sales EXPENDITURE : Increase/Decrease in Stock Raw Material Consumed Power & Fuel Cost Employee Cost Other Manufacturing Expenses General and Administration Expenses Selling and Distribution Expenses Miscellaneous Expenses Total Expenditure Operating Profit (Excl OI) Other Income Operating Profit Interest PBDT Depreciation Profit Before Taxation & Exceptional Items PBDT Provision for Tax Profit After Tax Adjustments to PAT Profit Balance B/F Appropriations Equity Dividend % Earnings Per Share Adjusted EPS 100 100 100 100 100 160.35 151.99 109.09 126.19 126.19 253.24 245.02 113.64 171.18 171.18 411.40 356.27 125.00 211.04 211.04 608.01 467.17 136.36 216.57 216.57 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 -543.99 136.21 135.28 132.01 128.72 132.76 97.38 42.00 126.98 150.59 89.63 140.16 140.89 140.01 135.15 141.32 140.01 138.88 141.91 -301.39 200.78 170.56 176.41 160.39 171.40 115.46 32.84 184.98 238.35 149.58 223.16 193.35 229.15 168.49 245.43 229.15 288.09 235.10 -303.57 227.06 205.41 216.57 159.71 173.43 147.72 1044.69 212.95 258.72 318.00 268.86 219.88 278.69 203.36 298.91 278.69 336.32 289.85 203.40 249.32 173.67 236.81 177.46 163.40 158.59 26.84 229.95 263.30 325.32 273.92 176.40 293.48 273.85 298.75 293.48 304.15 297.45 100 100 100 100 156.94 130.97 222.24 194.01 162.86 220.69 153.58 235.59 132.69 195.88 216.86 230.15 2006 2007 2008 2009 2010
(((RS IN CRORES)(RS)IN CRORES
1200
1000 Profit After Tax
800
600
PBDT
400
Total Expenditure
200
Net Sales
0 2006 2007 2008 YEARS 2009 2010
ANALYSIS
Above graph shows the trend analysis of Profit after tax, Profit before depreciation and tax, Total expenditure and Net sales over 5 years. Net sales has increased about 31%, 94%, 120%, and 135% in years 06-07, 07-08, 0809, 09-10 respectively. Net sales of the company is increasing which is a good sign for the company. Total expenditure has increased about 27%, 85%, 113%, and 130% in years 06-07, 07-08, 08-09, 09-10 respectively. Total expenditure includes raw material consumed, employee cost, selling & distribution expenses and administrative expenses. As production increased, the raw material consumed cost increased and overall expenses of the company increased. Profit before depreciation & tax has increased about 40%, 129%, 178%, and 193% in years 06-07, 07-08, 08-09, 09-10 respectively. Here, since other income is also included so we can say that there the entire profit is not from the core business of the company.
Profit after tax has increased about 41%, 135%, 190%, and 197% in years 06-07, 0708, 08-09, 09-10 respectively. Net profit has continuously increased so for investors it is a good opportunity to invest in the company.
CHAPTER 6: ANALYSIS OF CASH FLOW STATEMENT
CASH FLOW STATEMENT

PARTICULARS Profit Before Tax Adjustment Depreciation Impairment Interest Expenses Profit/Loss on sale of Fixed Assets Dividend Received Interest Income Effect of Exchange Rate Change Provision for doubtful debts &advances Misc. Expenses written off Other Adjustments Changes In working Capital Trade & Other receivables Inventories Trade & Other payables Cash Flow after changes in WorkingCapital Interest Paid Tax Paid Cash From Operating Activities Cash Flow from Investing Activities Purchase of Fixed Assets Sale of Fixed Assets Sale of Investments Investment in Subsidiaries Dividend Income Interest received Loans & advances given to subsidiaries / partnership firms etc. Other Investment Activities Cash from Financing Activities Increase / (Decrease) in Loan Funds Proceeds from Long Term Borrowings Proceeds from Debenture / Bonds Proceeds from Issue of Equity Share Capital Equity Dividend Paid Interest Paid Net Cash Inflow / Outflow Opening Cash & Cash Equivalents Closing Cash & Cash Equivalent Mar-10 341.48 54.26 84.03 51.32 -8.67 -0.22 -33.00 -49.64 0.17 10.27 -610.01 -563.54 12.45 -58.92 -214.27 -66.64 -280.91 -112.76 -94.25 1.06 -71.88 0.22 29.63 32.99 -10.53 253.86 27.64 339.10 Mar-09 Mar-08 Mar-07 Mar-06 (RS IN CRORES) 341.66 280.53 161.53 114.30 89.84 93.43 66.36 38.96 62.40 51.70 41.47 30.68 29.09 63.97 56.25 40.99 -19.63 -13.18 -1.47 -15.80 -2.02 -65.70 -13.47 -10.58 -6.85 51.96 8.55 -5.33 -0.70 0.25 -0.12 0.10 0.98 0.97 1.28 2.43 -2.37 2.73 -148.00 -298.04 -55.96 40.04 -156.06 -337.99 -90.47 1.98 -18.38 -17.40 -59.25 20.56 26.44 57.35 93.76 17.50 283.50 -63.19 220.31 -891.02 -434.62 1.12 -420.74 2.02 65.70 75.92 -35.48 40.44 -638.34 -380.02 0.74 -127.91 13.47 171.93 -21.90 150.03 -230.22 -221.50 0.43 -18.00 10.58 -1.73 143.56 148.65 -0.85 254.87 20.74 215.91 50.62 -10.09 -45.62 63.37 510.58 573.95 46 S .V. INSTITUTE OF MANAGEMENT 26.64 -8.42 276.09 234.49 510.58 6.85 193.31 -28.73 -12.09 152.48 -131.26 -161.44 0.17 24.01
26.23 -144.62 -130.73 59.70 1681.46 -201.01 129.84 354.91 885.21 759.53 -12.56 -80.56 1083.56 573.95 1657.51
-17.51 -95.37 -139.81 1046.50 906.69
-15.94 -78.26 -611.01 1657.51 1046.50
ANALYSIS
The profit and loss account reports only the effects of the current operation of the enterprise on its financial position. The balance sheet shows the financial position of the enterprise at the end of the year. Neither of these statements describes the investments in assets during and how those investments are financed. The statement of cash flows is a relatively new financial statement that reflects the major sources of cash receipts and cash payments of an enterprise. It reports the cash effects during a period of not only the enterprises operations but also its investing and financing activities. In the above statement, it can be observed that the cash flow from operating activities is showing negative balance in 2006 and then in 2007 it is showing positive balance. In 2008 the cash flow again decreased and then it is increasing. Negative cash flow clearly indicates that its manufacturing expenses were greater than the income from the sales of goods. Cash flow from investing activities is negative in all the 5 years. This is only due to purchase of more fixed assets and unrecovered of loans. Cash flow from financing activities was highest in 2007-08 and in remaining years it had small fluctuations.
CHAPTER 7: RATIO ANALYSIS
Meaning : A ratio is a statistical yardstick that provides a measure of relationship between two figures. Ratio analysis of financial statements stands for the process of determining and presenting the relationship of items in the statement. There are several ratios which an analyst can employ, but the type of ratio he would precisely use depends on the purpose for which analysis is made. So, investers will be interested in such ratios as earning per share, dividend per share.
Ratios are expressed in various forms

a) Pure ratio which are arrived at by the simple division of one number by another, e.g., current ratio to current liability ratio 2:1 b) Rate at which is ratio between two numerical facts, usually over a period of time, e.g., stock turnover ratio is 3 times a year. c) Percentage which is a special type of rate expressing the relation in hundredth, gross profit ratio is 25% on sales.
Uses of Ratio Analysis

1) It facilitates the comprehension of financial statement and evaluation of several aspects such as financial health, profitability and operational efficiency of undertaking. 2) It provides inter-firm comparison to measure efficiency and helps the management to take remedial measures. 3) It is also helpful in forewarning corporate sickness and helps the management to take corrective actions. 4) It helps in investment decisions in the case of investors and lending decisions in the case of bankers and financial institutions.
A) LIQUIDITY RATIO
Liquidity is defined as the ability to realize value in money e most liquid of assets. The liquidity ratio measure the liquidity of the firm and its ability to meet its maturing short- term obligations. It refers to the ability to pay in cash, the obligations that are due. The corporate liquidity has two dimensions that are quantitative and qualitative concepts. The quantitative aspects includes the quantum, structure and utilization of liquid assets and in the qualitative aspect, it is the ability to meet all present and potential demands on cash from any source in a manner that minimizes cost and maximizes the value of the firm.
Excess liquidity results into:

1) 2) 3) 4) lower profitability Deterioration in managerial efficiency Ideal cash fund giving lower returns Too liberal credit and dividend policies
Too little liquidity result into:

1) 2) Reduce rate of return Missing of profitable business opportunities
The important ratio measuring short-term solvency are : 1) Current ratio 2) Quick ratio
1)CURRENT RATIO 1.1) Meaning:

Current ratio measures relationship between current assets and current liabilities. This ratio measures the solvency of the company in the short-term. Current assets are those which can be converted into cash within a year. Current liabilities and provisions are those liabilities that are payable within a year.
1.2) Formula:
Current ratio =Current Assets Current Liabilities
Where current assets include inventories, sundry debtors, cash & bank balances etc. and current liability includes creditors, bank overdraft.
1.3)
Particular Current Assets(RS IN CRORES) Current Liabilities(RS IN CRORES) Current Ratio 2006 629.99 179.71 3.51:1 2007 810.71 292.09 2.78:1 2008 2292.64 602.17 3.81:1 2009 2221.15 581.1 3.82:1 2010 2450.06 522.7 4.69:1
1.4) Analysis:
The ideal current ratio is 2:1. When current ratio is double than current liabilities the firm has no difficulties in paying short term obligations on time. From the above table, the current ratio is increasing. This may be bcause the inventory of the company ahs increased due t low sales. Due to high proportion of obsolete, slow moving stock, the current ratio may be high but its capacity to meet its current liabilities is definitely weak
2) QUICK RATIO 2.1) Meaning:

Quick ratio is used as a measure of the companys ability to meet its current obligations. The quick ratio establishes a relationship between quick assets and current liabilities. Here inventory is deducted because rupee of cash is more readily available to meet current obligations than a rupee of inventory.
2.2) Formula:
Quick ratio = Current Assets - Inventory Current Liabilities
2.3)
Particular Current Assets(RS IN CRORES) Inventories(RS IN CRORES) Current Liabilities(RS IN CRORES) Quick Ratio 2006 2007 629.99 810.71 86.28 145.54 179.71 292.09 3.03:1 2.28:1 2008 2009 2010 2292.64 2221.15 2450.06 162.93 181.15 168.7 602.17 581.1 522.7 3.54:1 3.51:1 4.36:1
2.4) Analysis:
The ideal quick ratio is 1:1. From the table it is clear that quick ratio for all the 5 years is more than the ideal ratio. This indicates that the companys liquidity position is good and it has enough cash resources on hand to meet its urgent cash requirements
B)
LEVERAGE RATIO
The leverage ratio may be defined as financial ratios which throw light on the long term solvency of a firm as reflected in its ability to assure the long term lenders. There are two aspect of long term solvency 1) 2) Ability to repay the principal when due, Regular payment of interest
The long term financial stability of the firm may be considered as depedent upon its ability to meet all its liabilities, including those not currently payable. Thus long term solvency of the firm can be examined by using the leverage ratios. There are three type of leverage ratios : 1) 2) 3) Debt Equity ratio Capital Employed to Net Worth ratio Fixed Interest Coverage ratio
1) DEBT-EQUITY RATIO 1.1) Meaning :

This ratio indicates the relationship between total debt and net worth of the company. The relationship between borrwed funds and owners capital is a popular measure of the long term financial solvency of a firm. This relationship is shown by the debt equity ratio.
1.2) Formula :
Debt Equity Ratio = Total Debt Net Worth(excl. pref. share cap.)
Where, total debt = secured loans + unsecured loans. Net worth = share capital+ reserves & surplus - fictitious assets. 1.3)
Particular Total Debt(RS IN CRORES) Net Worth(RS IN CRORES) Debt-Equity Ratio 2006 582.66 444.94 1.31 2007 678.26 648.75 1.05 2008 1536.93 1459.97 1.05 2009 1938.36 1615.56 1.20 2010 2174.37 1859.85 1.17
1.4) Analysis :
This ratio indicates the relationship between total debt and net worth of the company. If debt equity ratio is low the company is said to be low geared company and it is not taking advantage of trading on equity. Debt equity ratio of 2:1 is accepted norm for financial institutions for giving loans for projects. In this company debt equity ratio is very low than required once. In 05-06 it was 1.31, in 09-10 it was 1.17. The main reason behind this is that therre are no preference shares and debentures. Capital structure of the company does not include debentures and pref. shares so company loses advantage. Ultimately ratio is very low so company is low geared one.
2) CAPITAL EMPLOYED TO NET WORTH RATIO 2.1) Meaning:

This ratio establishes a relationship between how much capital employed in the company and the net worth. This ratio is found out to know how much capital is employed to net worth. Capital employed including share capital, reserves and surplus and long term loans and net worth includes share capital and reserves and surplus.
2.2) Formula:
CE to NW Ratio = Capital Employed Net Worth inclu. Pref. share capital Capital Employed = share capital + reserves & surplus + secured Loans fictitious Assets Net worth = share capital+ reserves & surplus - fictitious assets.
2.3)
Particular Capital Employed(RS IN CRORES) Net Worth(RS IN CRORES) Capital Employed to Net Worth Ratio 2006 804.47 444.94 1.81 2007 1154.75 648.75 1.78 2008 2096.12 1459.97 1.44 2009 2407.55 1615.56 1.49 2010 2918.57 1859.85 1.57
2.4) Analysis:
This ratio is found out to know how much capital is employed to net worth. In this company in 05-06 capital employed ratio was 1.81 that means companys total capital is 1.81 times more than net worth of the company. While in 06-07 it was 1.78, it decreases and in 07-08 it slightly decreased and it was 1.44.and in last 2 years it was 1.49 & 1.57 respectively. Long term loans are not much employed so this ratio is near to one and it remains same for last three years.
3) FIXED INTEREST COVERAGE RATIO 3.1) Meaning:

This ratio measures the debt serving capacity of a firm insofar as fixed interest on long term loan is concerned. This ratio can be determined by dividing the operating profits by the fixed interest charges on loan.
3.2) Formula:
Fixed Interest Coverage Ratio = Earning Before Interest And Taxes Interest
3.3)
Particular EBIT(RS IN CRORES) Interest(RS IN CRORES) Fixed Interest Coverage Ratio 2006 174.08 29.09 5.98 2007 243.99 40.99 5.95 2008 388.48 56.25 6.91 2009 468.03 63.97 7.32 2010 476.83 51.32 9.29
3.4) Analysis:
This ratio measures the debt serving capacity of a firm insofar as fixed interest on long term loan is concerned. From the table, it is clear that this ratio shows increasing trend. It means that the financial strength of the company is sound because it has greater ability to handle fixed charge liabilities.
C) PROFITABILITY RATIO
The purpose of study and analysis of profitability ratios are to help assessing the adequacy of profits earned by the company and also to discover whether profitability is increasing or declining. The profitability of the firm is the net result of a large number of policies and decisions. The profitability ratios show the combined effects of liquidity, asset management, and debt management on operating results. Profitability ratios are measured with reference to sales, capital employed, shareholders funds etc. The major profitability ratios are as follows : 1) Gross Profit Ratio 2) Net Profit Ratio 3) Operating Profit Ratio 4) Operating Ratio 5) Expenses Ratio 6) Return On Shareholders Fund 7) Return On Total Assets 8) Return On Capital Employed
1) GROSS PROFIT RATIO 1.1) Meaning:

The ratio measures the gross profit margin on the total net sales made by the company. The gross profit represents the excess of sales proceeds during the period under observation over their cost, before taking into account administration, selling & distribution and financial charges.
1.2) Formula:
Gross Profit Ratio = (Sales Cost Of Goods Sold) *100 Net Sales
1.3)
Particular Gross Profit(RS IN CRORES) Net Sales(RS IN CRORES) Gross Profit Ratio(%) 2006 145.43 853.42 17.04 2007 203 1117.76 18.16 2008 322.23 1655.7 19.46 2009 404.06 1883.41 21.45 2010 425.51 2010.55 21.16
Cost Of Goods Sold = Opening Stock+ direct exp. closing stock Net sales = sales other income
1.4) Analysis:
The ratio measures the gross profit margin on the total net sales made by the company. In 05-06 this ratio was 17.04% which is low because near to 30% is good for the company. From 06-07 to 09-10 it shows increasing trend.
2) NET PROFIT RATIO 2.1) Meaning:

This ratio establishes relationship between net profit and sales of firm. The ratio is designed to focus attention on the net profit margin arising from the business operations business after operating expenses, interest & tax is deducted.
2.2) Formula:
Net Profit Ratio = Profit After Tax *100 Net Sales
2.3)
Particular PAT(RS IN CRORES) Net Sales(RS IN CRORES) Net Profit Ratio(%) 2006 92.02 853.42 10.78 2007 130.58 1117.76 11.68 2008 216.33 1655.7 13.07 2009 366.71 1883.41 19.47 2010 273.7 2010.55 13.61
2.4) Analysis:
This ratio establishes relationship between net profit and sales of firm. In 05-06 the ratio was 10.78% which is not good for the company. In 06-07 it slightly increased and it was 11.68%. As compare to both years in 07-08 it further increased and it was 13.07%. The ratio was highest in 08-09 which was 19.47%
3) OPERATING PROFIT RATIO 3.1) Meaning:

This ratio measures a relationship between operating profit and net sales of the company. It is focus on profit arising from business operations before interest & tax is deducted and after the deduction of other incomes.
3.2) Formula:
Operating Profit Ratio = (Earning Before Interest & Tax Other Income) Net sales
3.3)
Particular EBIT(RS IN CRORES) Other Income(RS IN CRORES) Net Sales(RS IN CRORES) Operating Profit Ratio 2006 174.08 29.79 853.42 0.17 2007 243.99 26.7 1117.76 0.19 2008 388.48 44.56 1655.7 0.21 2009 468.03 94.73 1883.41 0.20 2010 476.83 96.91 2010.55 0.19
3.4) Analysis:
This ratio measures a relationship between operating profit and net sales of the company. In 05-06 Operating Profit Ratio was 0.17 which was very low. As compare to previous year in 06-07 it was 0.19 and it was same in 2010 which is slightly increasing. Though sales were showing increasing trend but operating profit was fluctuating.
4) OPERATING RATIO 4.1) Meaning:

The ratios of all operating expenses that means material used, labour, administration & selling expenses etc. to sales is the operating ratio.
4.2) Formula:
Operating Ratio = 1 Operating Profit Ratio
4.3)
Particular Operating Profit Ratio Operating Ratio 2006 0.17 0.83 2007 0.19 0.81 2008 0.21 0.79 2009 0.20 0.8 2010 0.19 0.81
4.4) Analysis:
The ratios of all operating expenses that means material used, labour, administration & selling expenses etc. to sales is the operating ratio. From the above table we can say that operating ratio is almost constant in last 5 years and it is high. This is less favourable because it would have small margin to cover interest, income tax, dividends and reserves.
5) EXPENSE RATIO 5.1) Meaning:

This ratio measures a relationship between total expense incurred by the company and net sales. It shows that how much company is expending for selling its product.
5.2) Formula:
Expense Ratio = Total Expenses *100 Net Sales
5.3)
Particular Total Expenses(RS IN CRORES) Net Sales(RS IN CRORES) Expenses Ratio(%) 2006 709.14 853.42 83.09 2007 900.47 1117.76 80.56 2008 1311.78 1655.7 79.23 2009 1510.11 1883.41 80.18 2010 1630.63 2010.55 81.10
5.4) Analysis:
This ratio measures a relationship between total expense incurred by the company and net sales. Total expenditure shows small fluctuations since last 5 years. Total expenditure includes raw material consumed, employee cost, selling & distribution expenses and administrative expenses. As production increased, the raw material consumed cost increased and overall expenses of the company increased.
6) RETURN ON SHAREHOLDERS FUND 6.1) Meaning:

This ratio express the profit after tax in terms of the equity shareholders funds. This ratio is an important yardstick of performance for equity shareholder since its indicates the return on the funds employed by them.
6.2) Formula:
Return On Shareholders Fund = Profit After Tax *100 Shareholders Fund Shareholders Fund = equity sh. Capital + reserves & surplus fictitious assets
6.3)
Particular PAT(RS IN CRORES) 2006 92.02 444.94 20.68 2007 130.58 648.75 20.13 2008 216.33 1459.97 14.82 2009 366.71 1615.56 22.70 2010 273.7 1859.85 14.72
Shareholders Fund(RS IN
CRORES) Return On Shareholders
Fund(%)
6.4) Analysis:
This ratio expresses the profit after tax in terms of the equity shareholders funds. In 05-06 the ratio was 20.68%. In 07-08 it decreased up to 14.82%. And in 09-10 it further decreased to 14.72%. Decreasing trend shows that this is not a good option for investing. Funds employed by the shareholder are not giving them sufficient return.
7) RETURN ON TOTAL ASSETS 7.1) Meaning:

This ratio indicates relationship between profit after tax and total assets employed.The profitability of the firm is measured by establishing relation of net profit with the total assets of the organization. This ratio indicates the efficiency of utilization of assets in generating revenue.
7.2) Formula:
Return On Total Assets = Profit After Tax *100 (Fixed assets+Inbvestments+Current assets)
7.3)
Particular PAT(RS IN CRORES) Total Assets(RS IN CRORES) Return On Total Assets(%) 2006 92.02 1255.65 7.33 2007 130.58 1652.68 7.90 2008 216.33 3506.37 6.17 2009 366.71 4080.33 8.99 2010 273.7 4594.59 5.96
7.4) Analysis:
This ratio indicates relationship between profit after tax and total assets employed. From 2006 to 2010 the ratio shows many fluctuations because total assets of the company was increasing but profits was not constant in last five years.
8) RETURN ON CAPITAL EMPLOYED 8.1) Meaning:

This ratio shows relationship between profit after tax and total capital employed. It indicates how effectively the operating assets are used in earning return.
8.2) Formula:
Return On Capital Employed = Profit After Tax *100 Total Capital Employed Total Capital Employed = share capital + reserves & surplus + secured loan
8.3)
Particular PAT(RS IN CRORES) Total Capital Employed(RS IN CRORES) Return On Total capital Employed(%) 2006 92.02 808.99 11.37 2007 130.58 1156.87 11.29 2008 216.33 2097.27 10.31 2009 366.71 2407.72 15.23 2010 273.7 2918.57 9.38
8.4) Analysis:
This ratio shows relationship between profit after tax and total capital employed. In this company, the return was highest in 2009 which indicates the company is able to earn good profits on its capital employed. The ratio in the year 2010 is bit low which is not satisfactorily.
D) TURNOVER RATIO
Turnover ratio involved a relationship between sales and assets. Turnover ratios are also called activity ratios because they indicate the spend with which assets are being converted into sales. This ratio measures how effectively the firm employes its resources. This ratio involves comparison between the level of sales and investment in various accounts inventories, debtors, fixed assets etc. In turnover ratio, following ratios are to be computed : 1) 2) 3) 4) 5) 6) Inventory Turnover Ratio Fixed Assets Turnover Ratio Working Capital Turnover Ratio Total Assets Turnover Ratio Net Worth Turnover Ratio Debtors Turnover Ratio
1) INVENTORY TURNOVER RATIO 1.1) Meaning:

The inventory turnover ratio measures how many times a companys inventory has been sold during the year. The higher the stock turnover rate or the lower the stock turnover period the better.
1.2) Formula:
Inventory Turnover Ratio = Cost Of Goods Sold Average Inventory Average Inventory = opening stock + closing stock 2
1.3)
Particular COGS(Sales - GP) (RS IN CRORES) Average Inventory(RS IN CRORES) Inventory Turnover Ratio(Times) 2006 707.99 86.28 8.21 2007 914.76 115.91 7.89 2008 1333.47 154.24 8.65 2009 1479.35 172.04 8.60 2010 1585.04 174.93 9.06
1.4) Analysis:
The inventory turnover ratio measures how many times a companys inventory has been sold during the year. In 05-06 inventory turnover ratio was 8.21 times that means 8.21 times inventory was sold during the year that is good for the company. In 06-07 this ratio slightly decreased from the previous year and that is 7.89 times their inventory was decreasing. In 07-08 it was further increased up to 8.65 times and also cost of goods sold increased in 07-08 is higher than previous year. It was highedt in 2009-10 which means that the company is able to secure more sales.
2)FIXED ASSETS TURNOVER RATIO 2.1) Meaning:

The relationship between net sales and fixed assets is known as fixed assets turnover ratio. The assets are used to generate sales. Hence, the company should utilize its assets efficiency to maximize the amount of sales.
2.2) Formula:
Fixed Assets Turnover Ratio = Net Sales Net Fixed Assets
2.3)
Particular Net Sales(RS IN CRORES) Net Fixed Assets(RS IN CRORES) 2006 853.42 469.53 1.82 2007 2008 1117.76 1655.7 635.43 783.96 1.76 2.11 2009 2010 1883.41 2010.55 1221.29 1336.59 1.54 1.50
Fixed Assets Turnover Ratio(Times)
2.4) Analysis:
The relationship between net sales and fixed assets is known as fixed assets turnover ratio. In 05-06 ratio was 1.82 times and in 2009-10 it was 1.50.Net sales was increasing in last five years. Net assets were also increased up to considerable extent. The management purchased new fixed assets because they had expanded their operation. In 06-07 assets were not effectively used so it results into slight decreased in this ratio.
3)WORKING CAPITAL TURNOVER RATIO 3.1) Meaning:

This ratio indicates the extent of working capital turned over in achieving sales of the firm. Working capital is difference between current assets and current liability of the company.
3.2) Formula:
Working Capital Turnover Ratio = Net Sales Net Working Capital Net Working Capital = current assets current liability
3.3)
Particular Net Sales(RS IN CRORES) Net Working Capital(RS IN CRORES) Working Capital Turnover Ratio(Times) 2006 853.42 449.59 1.90 2007 1117.76 518.62 2.16 2008 1655.7 1690.47 0.98 2009 1883.41 1640.05 1.15 2010 2010.55 1927.36 1.04
3.4) Analysis:
This ratio indicates the extent of working capital turned over in achieving sales of the firm. This ratio was highest in 2006-07 and it was lowest in 2007-08.
4)TOTAL ASSETS TURNOVER RATIO 4.1) Meaning:

This ratio establish a relationship between net sales and total assets. This ratio shows firms ability in generating sales from all financial resources commited to total assets. The assets are used to generate sales for a firm. Hence, the company should utilize its assets efficiently to maximize the amount of sales.
4.2) Formula:
Total Assets Turnover Ratio = Net Sales Total Assets
4.3)
Particular Net Sales(RS IN CRORES) Total Assets(RS IN CRORES) Total Assets Turnover Ratio(Times) 2006 853.42 1255.65 0.68 2007 1117.76 1652.68 0.68 2008 1655.7 3506.37 0.47 2009 1883.41 4080.33 0.46 2010 2010.55 4594.59 0.44
4.4) Analysis:
This ratio establishes a relationship between net sales and total assets. This ratio shows firms ability in generating sales from all financial resources committed to total assets. In 05-06 & 06-07 this ratio was 0.68 times. In 09-10 ratio was 0.44 times which was slightly lower than previous years. It shoes inefficient utilization of resources.
5) NET WORTH TURNOVER RATIO 5.1) Meaning:

This ratio establishes a relationship between net sales and net worth. This ratio shows ability to generate sales from net worth of the company. Net worth of the company includes equity share capital and reserves of the company.
5.2) Formula:
Net Worth Turnover Ratio = Net Sales Net Worth Excl. Pref. Capital
5.3)
Particular Net Sales(RS IN CRORES) Net Worth(RS IN CRORES) Net Worth Turnover Ratio(Times) 2006 853.42 444.94 1.92 2007 1117.76 648.75 1.72 2008 1655.7 1459.97 1.13 2009 1883.41 1615.56 1.17 2010 2010.55 1859.85 1.08
5.4) Analysis:
This ratio establishes a relationship between net sales and net worth. This ratio shows ability to generate sales from net worth of the company. From the above table, we can say that the net worth turnover ratio is decreasing from 2005-06. This means that the company is not using the funds provided by the owner efficiently. It also means that the productivity of the sources, the owner has committed to carry out firms operation is low.
6) DEBTORS TURNOVER RATIO 6.1) Meaning:

This ratio measures the amount of resources tied up in debtors is reasonable and whether the company has been efficient in converting debtors into cash. Generally higher the ratio, better the position.
6.2) Formula:
Debtors Turnover Ratio = Net Sales Debtors + Bills Receivables
6.3)
Particular Net Sales(RS IN CRORES) Debtors(RS IN CRORES) Debtors Turnover Ratio(Days) 2006 2007 2008 2009 2010 853.42 1117.76 1655.7 1883.41 2010.55 150.67 213.04 476.7 495.8 677.06 5.66 5.25 3.47 3.80 2.97
6.4) Analysis:
This ratio measures the amount of resources tied up in debtors and whether the company has been efficient in converting debtors into cash. From the above table we can say that the ratio is a moderate in all the 5 years. This indicates that the companys credit collection department is functioning very efficiently. It also implies better liquidity as debtors make prompt payment. But this can also be looked as very short collection period. This means that the company follows very strict collection policy which may reduce the volume of sales. The company should follow a reasonable collection policy which is determined on the basis of practice of trade credit in the industry.
E) VALUATION RATIO
A valuation ratio is a measure of how cheap or expensive a security (or business) is, compared to some measure of profit or value. A valuation ratio is calculated by dividing a measure of price by a measure of value, or vice-versa. The market value is determined by multiplying the quoted share price of the company by the number of shares.
Valuation approach is the general way which is followed to determine a value indication of a business, corporate ownership interest, security, or intangible asset. Business Valuation is an estimation of the market value of a corporation / business. It differs from appraisal in the sense that appraisals only takes into consideraton the tangible. Valuation ratios tell you something about whether the market is pricing your candidate as a value, growth, or momentum stock. In this context, value stocks are out of favor; that is, they are of no interest to most market participants who prefer growth stocks. The following are the valuation ratios : 1) 2) 3) Dividend Yield Ratio Dividend Payout Ratio Price Earning Ratio
1) DIVIDEND YIELD RATIO 1.1) Meaning:

This ratio reflects the percentage yield that an investor receives on this investment at the current market price of the shares. This measure is useful for investors who are interested in yield per share.
1.2) Formula:
Dividend Yield Ratio = Dividend Per Share Avg. Market price per share
1.3)
Particular DPS(Rs) MPS(Rs) Dividend Yield Ratio(%) 2006 0.88 62.1 0.014 2007 0.96 96.2 0.010 2008 1 195.28 0.005 2009 1.1 189.07 0.006 2010 1.2 88.65 0.014
1.4) Analysis :
This ratio reflects the percentage yield that an investor receives on this investment at the current market price of the shares. It shoes the actual returns on the amount invested by him. From the table above, it was same in 2006 and in 2010 with minimal fluctuations i between the year.
2) DIVIDEND PAYOUT RATIO 2.1) Meaning:

Dividend payout ratio indicates the extent of the net profits distributed to the shareholders dividend. A high payout signifies a liberal distribution policy and a low payout reflects conservative policy.
2.2) Formula:
Dividend Payout = Dividend Per Share Earning per share
2.3)
Particular DPS(Rs) EPS(Rs) Dividend Payout Ratio(Times) 2006 0.88 9.33 0.09 2007 0.96 12.15 0.08 2008 1 18.35 0.05 2009 1.1 19.68 0.06 2010 1.2 20.2 0.06
2.4) Analysis:
Dividend payout ratio indicates the extent of the net profits distributed to the shareholders as dividend. From the above table that although comanys earning per share is increasing but it is paying less dividend to its investors and its preferring to reinvest in the business more.
3) PRICE EARNING RATIO 3.1) Meaning:

The ratio indicates the market price of an equity share to the earning per share. It measures the number of times the earnings per share discounts the market price of an equity share.
3.2) Formula:
Price EarningRatio = Avg. Market price per share Earning Per Share 3.3)
Particular MPS(Rs) EPS(Rs) Price Earning Ratio(Rs) 2006 62.1 9.33 6.66 2007 96.2 12.15 7.92 2008 195.28 18.35 10.64 2009 189.07 19.68 9.61 2010 88.65 20.2 4.39
3.4) Analysis:
The ratio indicates the market price of an equity share to the earning per share. It signifies the price that is currently rulling in the market for each rupee of earnings being made by company per share. This ratio was highest in the year 2007-08 which indicates the investors confidence in the stability and growth of companys income.
CHAPTER 8:
RECOMMENDATONS & SUGGESTIONS
SINTEX INDUSTRY LTD. is one of the big names in production of plastic products and textiles. Sintex is pioneer in manufacturing of plastic moulded products which exports their products in various places beyond the country and thus it has bright prospect ahead of it. One of the most important thing is they are running their business since last 35 years. So they are having good experience of the market. At present there are many competitors, so they have to give their best in terms of quality of the products. The company shares excellent business relationships with the electrical sector as it is one of the largest enclosure manufacturers for various products like meters, fuses, and electrical equipments , among others. The company also serviced utility companies in both private and public sectors and executed turnkey projects for lastmile connectivity in Rajasthan, Karnataka and Gujarat. The company integrated certain green elements. They have been associated with CEPT University, Ahmadabad who have helped it to spread awareness regarding green and sustainable building materials and technologies. This initiative will help the country in general and the company in particular, by bringing about green orientation in the field of build up structures. In the forth coming years the company will be able to offer affordable green housing solutions using several technologies like decentralized wastewater treatment systems, gray water recycling systems, solar water heating systems and rain harvesting structures.
CHAPTER 9: OTHER TOPICS
SALES
YEARS SALES/OTHER INCOME
2001 296.28
2002 376.56
2003 447.01
2004 547.27
2005 687.98
2006 853.42
2007 1117.76
2008 1655.7
2009 1883.41
2010 2010.55
SALES/OTHER INCOME
2500
2000 1500 1000 500 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 SALES/OTHER INCOME
NET WORTH
YEARS NET WORTH
2001 320.12
2002
2003
2004
2005
2006
2007
2008
2009
2010
327.4 346.28 348.78 500.39 444.94 648.75 1459.97 1615.56 1859.85
NET WORTH
2000 1500 1000 500 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 NET WORTH
YEARS
PROFIT BEFORE DEPRICIATION & TAX

YEARS PBDT 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 40.29 44.34 56.5 71.85 98.86 145.43 203 332.23 404.06 425.51
PBDT
450 400 350 300 250 200 150 100 50 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 YEARS
PBDT
PROFIT BEFORE DEPRICIATION INTEREST AND TAX

YEARS PBDIT 2001 59.58 2002 65.91 2003 84.99 2004 98.09 2005 123.71 2006 174.53 2007 243.99 2008 388.48 2009 468.03 2010 476.83
PBDIT
500 450 400 350 300 250 200 150 100 50 0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 YEARS
PBDIT
PROFIT AFTER TAX

YEARS PAT 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 24.14 19.22 23.95 33.66 53.91 92.02 130.58 216.33 266.71 273.7
PAT
300 250 200 150 100 50 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 YEARS PAT
TOTAL ASSETS
YEARS TOTAL ASSETS 2001 582.7 2002 569.98 2003 624.18 2004 694.69 2005 2006 2007 2008 2009 2010
916.56 1099.48 1401.49 3148.03 3696.78 4208.64
TOTAL ASSETS
4500
4000
3500 3000 2500
2000
1500 1000 500
TOTAL ASSETS
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 YEARS
EARNING PER SHARE

YEARS EPS 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 3.32 2.36 2.97 4.43 7.14 9.95 12.15 18.35 19.68 20.2
EPS
25 20 15 10 5 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 YEARS EPS
CAPITAL STRUCTURE Capital structure refers to the mix of long-term sources of funds, such as debentures, long-term debt, preference share capital and equity share capital including reserves and surplus. The financial manager should plan an optimum capital structure for his company. The optimum capital structure is obtained when the market value per share is maximum. The value will be maximized when the marginal real cost of each source of funds is the same. A sound appropriate capital structure should have the following features: Profitability:The capital structure of the company should be most advantageous. Within the constraints, maximum use of leverage at a minimum cost should be made. Solvency:The use of excessive debt threatens the solvency of the company. To the point debt does not add significant risk, it should be used otherwise its use should be avoided. Flexibility:The capital structure should not be inflexible to meet the changing conditions. It should be possible for a company to adapt its capital structure within minimum cost and delay if warranted by a changed situation. It should also be possible for the company to provide funds whenever needed to finance its profitable activities. Capacity:The capital structure should be determined within the debt capacity of the company, and this capacity should not be exceeded. The debt capacity of a company depends on its ability to generate future cash flows. It should have enough cash to pay creditors, fixed charges and principles.
CAPITAL STRUCTURE OF 2005-06

PARICULARS Share Capital Reserves & Surplus Secured Loans Unsecured Loans Total RS IN CRORES 19.73 429.73 359.53 223.13 1032.12 % 1.91 41.64 34.83 21.62 100
Unsecured Loans 21%
2005-06
Share Capital 2%
Reserves & Surplus 42% Secured Loans 35%
ANALYSIS:In the year 05-06, the reserves and surplus constituted around 42% where as the share capital constituted merely 2% of the total capital structure. The share of secured and unsecured loan was about 35% and 21% respectively. This shows that the liabilities of the interest payments on the company is high.

PARICULARS Share Capital Reserves & Surplus Secured Loans Unsecured Loans Total RS IN CRORES 22.19 628.68 506 172.76 1329.63 % 1.67 47.28 38.06 12.99 100
2006-07
Unsecured Loans 13%
Share Capital 2%
Secured Loans 38%
Reserves & Surplus 47%
ANALYSIS:In the year 06-07, the reserves and surplus constituted around 47% where as the share capital constituted merely 2% of the total capital structure. The share of secured and unsecured loan was about 38% and 13% respectively. This shows that the liabilities of the interest payments on the company are high. Here from the previous year reserves are increasing and secured loans are also increasing. It means that company has distributed less profit and maintain excessive reserves and surplus to execute growth plans.

Share Capital 1%
2007-08
Unsecured Loans 30%
Reserves & Surplus 48%
Secured Loans 21%
ANALYSIS:In the year 07-08, the reserves and surplus constituted around 48% where as the share capital constituted merely 1% of the total capital structure. The share of secured and unsecured loan was about 21% and 30% respectively. This shows that the liabilities of the interest payments on the company are high.

2008-09
Unsecured Loans 32% Share Capital 1%

2009-10
Unsecured Loans 28% Share Capital 1%
ANNEXURE
BALANCE SHEET OF SINTEX INDUSTRIES LIMITED
PARTICALAR SOURCES OF FUNDS: Share Capital Share Warrants & Outstandings Total Reserves Shareholder's Funds Secured Loans Unsecured Loans Total Debts Total Liabilities APPLICATION OF FUNDS : Gross Block Less: Accumulated Depreciation Net Block Capital Work in Progress Investments Current Assets, Loans & Advances Inventories Sundry Debtors Cash and Bank Other Current Assets Loans and Advances Total Current Assets Less: Current Liabilities and Provisions Current Liabilities Provisions Total Current Liabilities Net Current Assets Miscellaneous Expenses not written off Deferred Tax Assets / Liabilities Total Assets Contingent Liabilities Book Value Adjusted Book Value
2006
2007
2008
2009
2010
(RS IN CRORES) 19.73 5.41 429.73 454.87 359.53 223.13 582.66 1037.53 674.96 205.43 469.53 19.02 156.83 86.28 150.67 355.35 0.00 36.99 629.29 163.98 15.73 179.71 449.59 4.52 -61.95 1037.53 45.10 22.55 22.19 0.00 628.68 650.87 506.00 172.26 678.26 1329.13 881.85 246.42 635.43 38.79 206.54 145.54 213.04 385.30 0.00 66.83 810.71 254.79 37.30 292.09 518.62 2.12 -72.37 1329.13 26.65 58.47 29.24 27.10 50.53 1434.02 1511.65 636.15 900.78 1536.93 3048.58 1079.02 295.06 783.96 242.68 429.77 162.93 476.70 1325.87 0.00 327.14 2292.64 312.43 289.74 602.17 1690.47 1.15 -99.45 3048.58 304.10 107.75 53.87 444.73 2221.15 289.79 291.31 581.10 1640.05 0.17 -130.69 3566.09 317.82 119.23 59.61 -152.15 4056.49 247.31 137.26 68.63 789.26 2450.06 228.63 294.07 522.70 1927.36 27.10 12.00 1588.63 1627.73 791.99 1146.37 1938.36 3566.09 1575.11 353.82 1221.29 197.38 637.89 181.15 495.80 1099.47 27.10 22.27 1832.75 1882.12 1058.72 1115.65 2174.37 4056.49 1773.64 437.05 1336.59 136.75 807.94 168.70 677.06 815.04
PROFIT & LOSS ACCOUNT OF SINTEX INDUSTRIES LIMITED
PARTICULAR INCOME : Gross Sales Less: Sales Returns Less: Excise Duty Net Sales EXPENDITURE : Increase/Decrease in Stock Raw Material Consumed Power & Fuel Cost Employee Cost Other Manufacturing Expenses General and Administration Expenses Selling and Distribution Expenses Miscellaneous Expenses Less: Expenses Capitalised Total Expenditure Operating Profit (Excl OI) Other Income Operating Profit Interest PBDT Depreciation Profit Before Taxation & Exceptional Items Profit Before Tax Provision for Tax Profit After Tax Adjustments to PAT Profit Balance B/F Appropriations Equity Dividend % Earnings Per Share Adjusted EPS
2006
2007
2008
2009
2010
(RS IN CRORES) 913.98 60.56 853.42 6.89 510.54 34.47 32.70 58.70 41.88 20.80 3.17 709.14 144.29 29.79 174.08 29.09 144.99 30.68 114.30 114.30 22.29 92.02 110.88 202.90 44.00 9.33 4.66 1212.80 95.04 1117.76 -37.47 695.40 46.63 43.17 75.56 55.60 20.25 1.33 900.47 217.29 26.70 243.99 40.99 203.00 41.47 161.53 161.53 30.95 130.58 177.80 308.38 48.00 11.77 5.88 1790.29 134.59 1655.70 -20.76 1025.08 58.79 57.69 94.15 71.78 24.01 1.04 1311.78 343.92 44.56 388.48 56.25 332.23 51.70 280.53 280.53 64.20 216.33 280.80 497.13 50.00 15.97 7.98 1982.04 98.63 1883.41 -20.91 1159.22 70.80 70.82 93.75 72.63 30.72 33.08 1510.11 373.30 94.73 468.03 63.97 404.06 62.40 341.66 341.66 74.95 266.71 456.16 722.87 55.00 19.68 9.84 2103.56 93.01 2010.55 14.01 1272.89 59.86 77.44 104.17 68.43 32.98 0.85 1630.63 379.92 96.91 476.83 51.32 425.51 84.03 341.48 341.48 67.78 273.70 674.17 947.87 60.00 20.20 10.10
AUDITORS REPORT
To the Members of Sintex Industries Limited 1. We have audited the attached Balance Sheet of SINTEX INDUSTRIES LIMITED (the Company) as at 31st March, 2010, the Profit and Loss Account and the Cash Flow Statement of the Company for the year ended on that date, both annexed thereto. These financial statements are the responsibility of the Companys Management. Our responsibility is to express an opinion on these financial statements based on our audit. 2. We conducted our audit in accordance with the auditing standards generallaccepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and the disclosures in the financial statements. An audit also includes assessing the accounting principles used and the significant estimates made by the Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 3. Without qualifying our opinion, we draw attention to Note 4 of Schedule 20 to these financial statements, regarding the Scheme of Arrangement (the Scheme) approved by the Honourable High Court of Gujarat, as per which Scheme, in the year 2008-09 the Company earmarked ` 200 crore from Securities Premium Reserve to International Business Development Reserve Account (the IBDR) and has adjusted against the earmarked balance of IBDR, ` 141.46 crore upto 31st March, 2010 (including ` 10.53 crores during the year) being expenses of the nature as specified under the Scheme. The said accounting treatment has been followed as prescribed under the Scheme. The relevant Indian Generally Accepted Accounting Principles, in absence of such Scheme, would not permit the adjustment of expenses against the Securities Premium Reserve / IBDR. Had the Company accounted for these expenses as per Generally Accepted Accounting Principles in India, instead of accounting for as per the Scheme, the balance of Securities Premium Reserve / IBDR would have been higher by ` 141.46 crore as at 31st March, 2010 and Profit after tax would have been lower by ` 10.53 crore for the year ended on 31st March, 2010. 4. As required by the Companies (Auditors Report) Order, 2003 (CARO) issued by the Central Government in terms of Section 227(4A) of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order. 5. Further to our comments in the Annexure referred to in paragraph 3 above, we report as follows: a) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;
b) in our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books; c) the Balance Sheet, the Profit and Loss Account and the Cash Flow Statement dealt with by this report are in agreement with the books of account; d) in our opinion, the Balance Sheet, the Profit and Loss Account and the Cash Flow Statement dealt with by this report are in compliance with the Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956; e) in our opinion and to the best of our information and according to the explanations given to us, the said accounts give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: i) in the case of the Balance Sheet, of the state of the affairs of the Company as at March 31, 2010; ii) in the case of the Profit and Loss Account, of the profit for the year ended on that date; and iii) in the case of the Cash Flow Statement, of the cash flows for the year ended on hat date. 6. On the basis of the written representations received from the Directors as on 31st March, 2010 taken on record by the Board of Directors, none of the Directors is disqualified as on 31st March, 2010 from being appointed as a director in terms of Section 274(1)(g) of the Companies Act, 1956. For Deloitte Haskins & Sells Chartered Accountants (Registration No. 117365W) Gaurav J. Shah Partner Membership No. 35701
Ahmedabad Date: April 30, 2010
BIBLIOGRAPHY
Gupta R. L., Radhaswamy M, 1999, Advanced Accountancy, Sultan Chand &Sons, 26-50 Accounting, The ICFAI University, 310-334.
Kishore M. Ravi, 2000, Cost & Management Accounting, Taxmann
SOURCES OF INFORMATION
http://www.investopedia.com/terms/f/financialmanagement
www.business dictionary.com/definition/.html
http://www.netmba.com/marketing/mix/ http://www.learnmarketing.net/servicemarketingmix.htm l http://www.michelfortin.com/how-to-target-your-perfect-customer/

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PREFACE

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Purvi Rathi Anushree Karani

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Particulars Preface Acknowledgment Executive summary Chapter 1

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P.G.D.B.A. from IIM, Ahmedabad 3 decades of experience in plastics

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Dinesh Patel (Chairman)

Arun Patej (ViceChairman)

S B Dangayach (Managing Director)

SBU 1- Mr. Sanjiv Roy

Building related products and industries and electric related

SBU 2- Mr. S Venktachalam

III.) ORGANISATIONAL STRUCTURE AND CHART:

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BHOPAL JAIPUR MUMBAI RANCHI

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PICTURES OF PRODUCTS MANUFACTURED BY SINTEX INDUSTRY LIMITED:

BUILDING AND CONSTRUCTI ON

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OPEN MOUTH PACKAGING DRUMS

SINTEX WATER TANKS

CONTINOUS SANDWICH PANEL

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COMPARATIVE BALANCE SHEET

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COMPARATIVE PROFIT & LOSS ACCOUNT

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CHAPTER 4: COMMON SIZE STATEMENTS

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COMMON SIZE STATEMENT OF BALANCE SHEET

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COMMON SIZE STATEMENT OF PROFIT AND LOSS ACCOUNT

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Contribution of depreciation to net sales was 4.18% in 2006 and it significantly

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CHAPTER 5: TREND ANALYSIS

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