Analysis of Four Companies

Intra-Company Analysis
Infosys Technologies Ltd. The Net Worth of the company has gone up from `5319 Crores in 2005 to `7034 Crores in 2006 owing to an increase of 34.14% in the Reserves and Surplus from 2005 to 2006. The high level of Reserves and Surplus indicates that maybe the company has a policy of retaining their earnings. They have also increased their capital by 3 Crores from the level in previous financial year. The company has reduced its dependency on long term funds as they have gone down from `94 Crores in 2005 to `68 Crores in 2006. They have increased their fixed assets by 30.43% that is from `2287crores in 2005 to `2983 crores in 2006 which suggests that maybe they are increasing their level of activity and need fixed assets to sustain it in the long run. This is also suggested by the drastic increase of 117.57% in cash and bank balances. There has been an increase of 63.71% in the liabilities and provisions. Overall there the new current assets have gone up from `2488 Crores in 2005 to `3988 crores in 2006. The company has reduced the investments made, from `1211 Crores in 2005 to `755 Crores in 2006. The total revenue had increased with the biggest share coming from their Financial Services Segment. This share has gone from `2466 crores in 2005 to `3427 crores in 2006. Financial Services segment, manufacturing segment, telecom segment and retail segment continue to be the major sources of revenue, all increasing from their 2005 levels. The net income after tax has gone up by 134.29%, that is from `1846 crores in 2005 to `2479 Crores in 2006.

Raymond Limited There had been an increase of 8.9% in the net worth of the company in the previous year. It has increased from `1174.54 crores in 2005 to `1273.75 in 2006. There had been an increase of 46.81% in secured and unsecured loans which suggests that are increasing their dependency on borrowed funds rather than owners funds.

 Other long term liabilities have also increased by 75.63%, giving similar indications. Net block has gone up by 45.03% and the capital work-in-progress has increased by 137.9% that is increasing from `109.62 crores in 2005 to `260.8 crores in 2006. Their inventory has increased from `370.96 crores in 2005 to `444.77 crores in 2006 showing an increase of 19.89%. Their current liabilities and provisions have also gone up from `206.42 crores in 2005 to
`411.48 crores in 2006 thus showing an increase in the variable cost of the company.

Their net turnover has increased from `1408.87 crores in 2005 to `1676.81 crores in 2006. The revenue from taxi operations has fallen from `8.97 crores to `3.48 crores. The income from job work increased from `1.03 crores in 2005 to `5.36 crores in 2006. There has been a slight fall in the dividend income and interest income of the company. Overall there has been an increase in the costs and the incomes as well. It appears as if the company has increased the level of activity. The overall profit after tax has also shown an increase of 120.18%. It went from being `27.69 crores in 2005 to `60.97 crores in 2006.

Blue Dart Express Limited The results for the year ending December 2005 are of 15months whereas the next accounting period is of 12 months only, ending in December 2006. There has been an increase of 26.96% in the reserves and surplus. So maybe the company has adopted the policy of retaining their earnings. They have reduced their loan funds from `420 crores in the financial year ending in 2005 to just `102 crores for the year ending December 2006. There has been an increase of 32.34% in Sundry debtors. Among the fixed assets, there has been a noticeable increase in case of computers- from `106 crores to `133 crores. There has been an increase of 61.02% in the revenues from service charges and the profit after tax has also grown by 12.21%.