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INTRODUCTION
FINANCIAL STATEMENT ANALYSIS The term financial analysis, also known as analysis and Analysis of financial statements, refers to the process of determining financial strengths and weaknesses of the firm by establishing Strategic relationship between the items of the profit and loss account, balance sheet and other Operative data. The purpose of financial statement analysis is to diagnose the information contained in financial statements so as to judge the profitability and financial soundness of the firm. Financial Statements Analysis is an attempt to determine the significance and meaning of the financial statements data so that forecast may be made of the future earnings, ability to pay interest and debt maturities (both current and long Term) and profitability of sound dividend policy. MEANING AND CONCEPT Financial statement refers to a set of reports and schedules which an accountant prepares at the end of a period of time for business enterprise. The management, creditors, investors and others to form judgment about the operating performance and financial position of the firms use the information contained in these statements. Financial statements are prepared primarily for decision-making. They play a dominant Role in setting the frame work of managerial decisions .But the information provided in the financial Statements is not an end to itself as no conclusions can be drawn from those statements alone. However, the information provided in the financial statements is of immense use in making decision through analysis and Analysis of financial statements.
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NEED OF THE STUDY . It measures and evaluates the financial performance of the organization. . The study of financial performance helps in decision making for investments and capital expenditure. . The purpose of financial performance is to diagnose the profitability and Financial soundness of the organization. Through financial performance the organization can identify opportunities to improve performance at the department, unit, or organizational level. To access the short term as well as long term liquidity position of the Organization. The bank will analyze the balance sheet to determine the financial strength of the concern and profit and loss account will also be studied to find out the earning position. The management is able to decide the course of action to be adopted in Future. OBJECTIVES OF THE STUDY The following are the objectives of the study. To know the financial performance of the Ashok leyland, by using comparative statement analysis. To know the long term and short term financial position of the Ashok leyland To evaluate the profitability position of the company. To study the financial aspects for the future expansion of the company. To offer suitable suggestions wherever necessary.
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SOURCES OF DATA
Methodology of data is a systematic procedure of collecting information in order to analyze and verify a phenomenon. The information has been collected from two sources. They are also as follows Primary data Secondary data Primary data The primary data was gathered through personal interaction with various functional heads and technical personal. Secondary data The secondary data has been collected from the following sources. Annual reports of the company Reference to journals, textbooks and newspapers
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LIMITATIONS
The following are the limitations of the study The study is based on data present in the annual reports which concerns with financial reports of Ashok leyland The study is analyzed for past five years (2006-2011) financial information. Hence the Analysis con not be applicable in future. As the study period is short the analysis may not give a correct idea about the financial performance As the campaign maintains some secrecy, the accurate Analysiss were not drawn. There may be some fractional difference in the calculations.
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INDUSRTY PROFILE
Overview
Indias automobile sector consists of the passenger cars and utility vehicles, commercial vehicle, two wheelers and tractors segment. The total market size of the auto sector in India is approximately Rs 540 billion and has been growing at around 8 percent per annum for the last few years. Since the last four to five years, the two wheelers segment has driven the overall volume growth on account of the spurt in the sales of motorcycles. However, lately the passenger cars and commercial vehicles segment has also seen a good growth due to high discounts, lower financing rates and a pickup in industrial activity respectively. The automobile industry is fairly concentrated, as in most of the segments two to three players have cornered a major chunk of the total sales. For instance, in passenger cars segment, MUL, Tata Motors and Hyundai Motors control around 85 percent of the total annual sales. Similarly, in the two wheelers segment, the sales volumes of Hero Honda, Bajaj Auto and TVS Motors constitute around 80 percent of the total sales and in the commercial vehicles segment, the market leader Telco controls around 56 percent of the total annual sales. The auto components industry on the other hand is highly fragmented, though there are dominant players in some of the critical segments.
Investment climate
Given the high growth expectations and a liberal government policy, the investment potential in the India auto sector is huge. CRIS INFAC is forecasting a 1215% annual growth in the passenger car sales, 6-8% in commercial vehicles and around 10% in two wheelers. Several passenger car makers have already achieved near full capacity utilization and are expanding. Almost all the major automobile manufacturers such as GM, Ford, DaimlerChrysler, Honda, Toyota, Hyundai, and Fiat (with the exception of Volkswagen, which is planning to set up manufacturing Page 5
shortly) already have made significant investments in India. In the next 2-3 years, the passenger vehicle industry is expected to see investments of more than Rs 30 billion. Similarly, two wheeler industries is expected to attract investment amounting to Rs 10 billion. There has also been a surge in exports of cars, utility vehicles and two wheelers. The expected growth in domestic sales and exports of vehicles also offers significant opportunity for investors to invest in the auto ancillary industry. Already several international suppliers such as Delphi, Visteon, TRW, Johnson Controls, Denso and Dana, have set up manufacturing facilities and are expanding rapidly to serve not only the domestic market but also to supply to their global customers. Another attractive area of investment for vehicle and parts makers is research and design, to take advantage of Indias low cost advantage. However, investment in commercial vehicle manufacturing looks relatively unattractive, given the current size and structure of the Indian market. Recently, government has liberalized the investment norms for the auto sector. Local content requirements and export obligations have been scrapped, and minimum investment requirements also have been diluted. Import duties on vehicles and parts have been gradually coming down and are expected to decline further in the next two years. Several state governments also offer attractive incentives, such as sales tax relaxations and concessional land, to potential investors. However, manufacture of certain components continues to be reserved for the small-scale sector. This reservation is also expected to lifted gradually over the medium term.
Outlook
The expected rise in income levels, wide choice of models and easy availability of finance at low interest rates will drive growth in passenger cars segment, which is likely to be over 12 percent per annum for the next four to five years. Two wheelers growth is likely to marginally slow down, but still grow at an average annual growth rate of around 10 percent. The commercial vehicles segment is likely to grow at a trend rate of 68 percent driven mainly by the increase in industrial and economic activity on account of the expected growth in the economy, though annual growth rates may fluctuate widely with the cyclical ups and downs of the economy. Tractor industry growth is Page 6
likely to turnaround and post a growth in volumes in 2004-05. However, it will post a moderate growth of around 4-5 percent annual growth rate over the medium term.
Executive Summary
The Indian automobile industry is currently experiencing an unprecedented Boom in demand for all types of vehicles. This boom has been triggered primarily by two factors: Increase in disposable incomes and standards of living of middle class Indian families estimated to be as many as four million in number; and the Indian government's liberalization measures such as relaxation of the foreign exchange and equity regulations, reduction of tariffs on imports, and banking liberalization that has fueled financing-driven purchases. Industry observers predict that passenger vehicle sales will triple in five years to about one million, and as the market grows and customer's purchasing abilities rise, there will be greater demand for higher-end models which currently constitute only a tiny fraction of the market. These trends have encouraged many multinational automakers from Japan, U. S. A., and Europe to enter the Indian market mainly through joint ventures with Indian firms. This paper presents an introduction to the key players in the Indian automotive industry, a summary of the recent developments, and an analysis of the Opportunities and challenges facing the various players (Indian and multi-national assemblers and Component makers) in the areas of product development, production, and distribution.
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Wanted to import technology or products needed a license/permit from the government. The difficulty of getting these licenses stifled automobile and component imports, creating a low volume high cost car industry that was inefficient, unprofitable, and technologically obsolete. The Two dominant products Ambassador and Fiat, although customized to the poor road conditions inIndia, were based on a stale design concept (with outdated features), and were also fuel inefficient. In the early 1980's, the Indian government made limited attempts at reforming the automotive industry, and entered into a joint venture with Suzuki of Japan. The joint-venture, called Marti UdyogLimited, launched a small but fuel efficient model (called "Marti 100"). Priced at about $5,500, the product became an instant hit. The joint venture now produces three small-car models, a van, and a utility vehicle at a rate of more than 250,000 a year. Despite being a late entrant, Martis vehicles are estimated to account for as much as 70 per cent of India's car population. In 1991, a newly elected Indian government took over and faced with a balance-of-payments crisis initiated a series of economic liberalization measures designed to open the Indian economy to foreign investment and trade. These new measures effectively dismantled the license raj which had made it difficult for Indian firms to import machinery and know-how, and had disallowed equity Ownerships by foreign firms. In 1993, the government followed up its liberalization measures with significant reductions in the import duty on automobile components. These measures have spurred the growth of the Indian economy in general, and the automotive industry in particular. Since1993, the automotive industry has been experiencing growth rates of above 25%. Data for the 1995-96 financial year is yet to be released by all the firms, but estimates indicate that passenger vehicle sales may reach or exceed 350,000 for the first time. (Passenger vehicles include cars and vans but not jeeps.) Table 1 presents the production data of passenger vehicles for the top four Indian assemblers. Foreign vehicle sales have been insignificant until the 1994-95 years. Company Main Products 1992/93 Automotive Components Manufacturers Association of India (ACMA) and other press reports1.
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Commanding more than a 70% share of the Indian passenger vehicle market. (It also sells a few thousand jeeps, called Gypsy, which are not included in the passenger vehicle data of Table 1.) Most recent data released by MUL show that it produced a total of 277,000 vehicles in 1995/96 resulting in a turnover of approximately $2 billion (Rs. 6673 core, Source: Financial Express, March 30, 1996). It is also a reasonably profitable venture with after tax profits of about $122 million (a 65 % increase over the previous year). MUL's relatively large production volumes offer. Scale economies in production and distribution that pose formidable barriers to entry. It has also Established a solid supplier-base located around India (most of its assembly is concentrated in Northern India near New Delhi). Its products enjoy good reputation in fact, Indian automotive industry observers credit Marti for the rapid improvement in quality and supplier capability in This industry. Much of the data presented in this paper has been extracted from the annual reports published by ACMA, and from articles in the business press and trade journals. Occupying the second position in 1994/95 is Bombay-based Premier Automobiles Ltd. (PAL), which edged out Calcutta-based Hindustan Motors Ltd. (HM) from the second place. In fact, PAL produced the Fiat, and HM produces the Ambassador both products that dominated the Indian automotive industry for decades. The advent of Maruti has resulted in the decline of both these firms. PAL's main products are the Premier Padmini (in the compact car segment) and the NE118 (in the mid-size car segment). Recently, PAL has rejuvenated itself by entering into joint ventures with Peugeot (for the Peugeot 309), and with Fiat (for the Fiat Uno). Its close competitor HM continues to produce Ambassadors in small volumes targeted at the economy/compact car segment. HM also offers a higher end product called Contessa Classic, and has entered into joint venture agreements with General Motors (GM) to produce the Opel Astra, and with Mitsubishi to make the Lancer targeted at the higher-end market. Despite occupying the fourth position and producing passenger vehicles only in small volumes, Tata Engineering. & Locomotive Company Ltd. (TELCO) is noteworthy, not only because it is a part of the powerful Tata industrial family, but also because it is one of the few firms with indigenous product development capabilities, and has been a dominant player in the commercial vehicles segment. Page 9
(The author, in fact, worked with TELCO for a brief period in the late 80's in their light heavy commercial vehicles market, and (after entering the market late) has also managed to fend off Japanese competition by gaining about 50% of the light commercial vehicles segment with its in-house Product development. It entered the passenger vehicles market only in 1991-92, and has Quickly established itself in the higher end of this segment with its Estate and Sierra models. The firm has entered into a joint venture with Mercedes Benz to assemble the E220's, and is also said to be planning an entry into the small/economy car segment challenging Maruti's stronghold.
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approach to solving this problem is to privatize the road infrastructure, by having private firms build and operate toll ways. However, it is unclear if this alone will be able to solve this infrastructure problem of enormous proportions, which can severely bottleneck future growth. The significant (about 50%) tariffs imposed on import products and components combined with the vagaries of currency exchange rates make localization an important imperative for foreign companies entering the Indian market. Firms are already making a major effort to localize rapidly; The DaewooDCM venture is expected to raise its local content to 90% by the decade's end. GM's Astra will start with 40% labor content, and go up to 75% within three years. One challenge to localization is a shortage of component suppliers with size and sophistication.
Conclusions
The Indian automotive industry, although growing rapidly, is in a state of flux. The production capacities planned by the new joint ventures currently exceed most projections, and unless import tariffs come down quickly and the economy grows remarkably, a shake-out may be expected from the current 20 firms to about half a dozen major firms turning out finished products by the end of the decade. However, if multi-national firms decide to use India as a production base from which vehicles are exported to the rest of the world, more than half a dozen firms may be able to remain profitable in India. Suzuki has already begun to use its Maruti joint-venture production to export a few thousand cars to the Middle East and Europe. However, the production capacities of other emerging economies such as Korea and China are also predicted to grow significantly in the coming years, so exports may also face a highly competitive market situation. In this paper, we have presented a brief introduction to the Indian assemblers and component suppliers. We noted that Indian assemblers have a tight hold over the small-car market due to their low cost supplier base and the tariffs levied on import components. Maruti with its production volumes of over 250,000 enjoys scale economies in production, distribution, and service that are hard to challenge. As Amsden and Kang [95] (cited before) and Womack et al.5 note, production volumes do confer several advantages to a firm. However, new entrants can set themselves apart by offering new safety and comfort features that are not currently offered in the Indian market. Page 12
They can also leverage their low production run (lean) capabilities to stay profitable despite the low production volumes. Further, they can combine their reputation with the Indian industry'slower production costs to produce cars and export them to the global markets. Many multinationals are already said to be planning such an approach. For Indian component makers and assemblers, product development capability is key, in order to rejuvenate their product lines, enhance their reputation, and export their products to the markets in developed countries. Since the plants located in India are very far from the developed markets of the USA, Europe, and Japan, component suppliers incur significant transportation and inventory carrying costs in exporting products to global markets. Their situation is worsened by the poor Indian infrastructure, which leads to frequent power interruptions and long delays in supply. These companies are adopting innovative techniques to cope with these uncertainties, which will be a topic of another paper. The Indian automotive industry, as a whole, is also severely bottlenecked by the woefully inadequate road infrastructure. Privatization of the road infrastructure, even if started immediately, can take years to solve this problem. India also experiences an extraordinarily high number of traffic fatalities, and faces severe pollution problems. As of April 1, 1996, the ministry of surface transport has set emission norms (that are modest by international standards), which local automakers say are hard to meet. Multi-national firms can bring their experience and know-how to bear in these areas, and enhance their reputation as well as attract customers who are safety conscious and environmentally aware. This will also result in the gradual reduction of the auto related facilities and pollution (due to the diffusion of these practices), thereby contributing to the further growth of the Indian automotive industry. Womack J. P., D. T. Jones, and D. Roos, "The Machine That Changed The World: The Story of Lean Production", Har per Publishers, 1990. Not long ago, India's auto industry was a laughing stock. Its two best-known cars were a 1940s Morris model called the Ambassador and a 1960s Suzuki-derived model called the Maruti 800. But that was then. Today, for instance, the Mumbaibased DilipChhabria Design Pvt Ltd (DC Design) is seeking to take on Pininfarina and Bertone, the Italian standard in international car design, by designing and building concept cars, prototypes and limited-production runs. Nor is DC Design alone. Page 13
"There can be few more improbable automotive stories than the yarn about the Indian designers creating bespoke concept and prototype cars," said the United Kingdom's auto magazine AutoCAD in a recent issue. "Yet the hottest ideas in car design are happening right now in the back streets of Mumbai." India is now the ninth country in the world to design a vehicle on its own. In fact, the Indian auto industry is fast becoming an outsourcing hub for automobile companies worldwide, as zooming automobile exports from the country indicate. Surinder Kapur, the chairman of Sona Koyo Steering, which exports car steering assemblies, says, "Car makers over the world have realized that India can design a car on its own and make it globally acceptable." The Indian-made sports utility vehicle Scorpio received a singular response in Detroit early this year, not just for its design but also because of its cheaper price tag. Tata Motors, the country's second-largest car maker's small Indica convinced MG Rover of the UK to sell it to the UK market as the City Rover. Others like Ford's midsized car model Ikon, Maruti's Altos and Toyota's Indian-made multi- utility vehicle have found ready buyers in a number of American, European and neighboring countries. "Indeed, India is well on its way to become an outsourcing hub for global auto manufacturers and the country stands a good chance against China," says Sundaram Mutual Fund managing director T P Raman, although Singh, vice president of finance for Ford Motor Company of Canada, thinks that global auto majors can't ignore either China or India. Already, 15 global car makers - including GM, Ford, DaimlerChrysler, Mercedes-Benz, Audi, Isuzu and Nissan have set up outsourcing offices in the country, with a combined budget of approximately $1.5 billion, industry sources say. Leading component makers like Delphi, Visteon and Caterpillar, too, have found India their best bet. While according to industry estimates the cost of automotive design in Europe ranges as high as $800 per hour, and even higher in the US, costs are as low as $60 per hour in India for equivalent quality. But more importantly, according to industry analysts, the Indian auto industry has finally come of age, having upgraded itself in the past few years to meet global standards. DilipChhabria, the head of DC Designs, makes no bones about taking on
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the world's best. Earlier this year, the Aston Martin AMV8 Vantage starred at the Detroit Auto Show. Chhabria developed the prototype as part of a Ford contract. Until the mid 1990s, the Indian auto sector consisted of just a handful of local companies. However, after the sector opened to foreign direct investment in 1996, global majors moved in. By 2002, Hyundai, Honda, Toyota, GM, Ford and Mitsubishi had set up their manufacturing bases here. "These companies first had to focus on issues like quality, vendors and marketing before they could think big," says Arindam Bhattacharya, vice-president, Boston Consulting Group. Thus, in the past four to five years, these companies have not only fine-tuned their operations but forced transformation on the rest of the industry as well. "Consequently," Bhattacharya adds, "India has not only emerged as a low-cost base but also a source for producing quality products." Still, Singh of Ford feels that India's auto industry will continue to make its presence felt, primarily because it is one of the few countries the global auto industry cannot ignore. "Two-thirds of a car is built from suppliers. That's a big cost item and companies can cut costs to a large extent in places like India and China," he says. "We can't ignore either China or India, which are projected to be so huge that it would be dangerous to look only at one of them. They are showing the highest growth rate of any market in the world. Any auto maker would be on a fool's errand if it ignores any of them. " Small wonder then that Ravi Khanna of Delphi India is "convinced that with the increasing emphasis on quality, India is fast moving towards becoming a sourcing hub for global automobile makers".
Methodology
The rating methodology for automobile sector has been developed keeping in mind the life cycle impact of the automobile industry. Thus, the weight ages were allotted accordingly with 80 per cent of the score devoted to life cycle analysis (LCA) and remaining 20 per cent for corporate governance. The life cycle assessment included determining the environmental impacts at various steps of the production process right from sourcing of raw materials, to the manufacturing and assembly process, to the pollution caused by use of the vehicle, and finally the impact caused by its disposal. Page 15
Clean vehicle
We did a comparative analysis of impact of fuels on emissions. Study based on analysis of three diesel-fuelled mass transport vehicles and two CNG fuelled mass transport vehicles clearly showed that CNG fuelled vehicles are far better in terms of tail pipe emissions than the diesel fuelled mass transport vehicles. CNG-fuelled vehicles have as much as five times lower particulates and overall 73 per cent lower emissions than their diesel counterparts.
Clean fuel
Overall petrol vehicles show an inherent advantage over the diesel-fuelled vehicles with all the top 14 cars being petrol ones. The best diesel car, which is Mercedes E 220, ranks as low as 15. While the best multi-utility vehicle, Toyota Qualis Euro II model ranks a dismal 20th among all the 31 models.
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COMPANY PROFILE
Ashok Leyland product development successes have come from a keen sense of anticipation and attentiveness. The company initiated research into alternative fuels well before legislative debate had even begun in the country. The result was the implementation of CNG technology ahead of the rest promising a breath of fresh air for polluted cities. Ashok Leyland Project Services Limited (ALPS), spearheads the project development activities of the Hinduja Group in India. Apart from assisting the investment entities of the Group identify and implement successfully projects in India, ALPS also provides professional services to help international companies interested in projects in India. Through its pool of multi-sector professionals (in areas such as power, telecommunications and surface transport infrastructure), ALPS adds the Indian element to the multinational company or consortium.
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This company provides specialized services for undertaking pre-investment, The Board of Directors and the Management of Ashok Leyland are committed to the enhancement of shareholder value. Ensuring transparency and professionalism in all decisions and transactions and through sound business decisions, prudent financial management and high standards of ethics throughout the organization achieving excellence in Corporate Governance by conforming to, and exceeding wherever possible, the prevalent mandatory guidelines on Corporate Governance and by regularly reviewing the Board processes and the Management systems for further improvement.
The company has adopted a Code of Conduct for the members of the Board and senior management, who have all affirmed in writing their adherence to this code perspective when it is provision and by means of measurement, its relationship with others is established in terms of if relative significance and it is ranked in terms of its relative significance. One can achieve this by comparisons made between related items in the statements of a series of years.
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This discussion contains descriptions and examples of the eight major types of ratios used in financial analysis: Income, Profitability, Liquidity, Working Capital, Bankruptcy, Long-Term Analysis, Coverage, and Leverage.
Impact of Government influence Selective application of government incentives to various companies may also distort intercom any comparison. One company may be given a tax holiday while the other within the same line of business not, comparing the performance of these two enterprises may be misleading. Window dressing These are techniques applied by an entity in order to show a strong financial position. For example, MZ Trucking can borrow on a two year basis, K10 Million on 28th December 2003, holding the proceeds as cash, then pay off the loan ahead of time on 3rd January 2006. This can improve the current and quick ratios and make the 2003 balance sheet look good. However the improvement was strictly window dressing as a week later the balance sheet is at its old position. Ratio analysis is useful, but analysts should be aware of these problems and make adjustments as necessary. Ratios analysis conducted in a mechanical, unthinking manner is dangerous, but if used intelligently and with good judgment, it can provide useful insights into the firms operations. Able for decision Making Project development which includes feasibility studies, appraisals, development of joint ventures, company formation and other professional services that are designated to deliver project opportunities from concept to commissioning. ALPS provides related services on request for specialized inputs to assist in the profitable and economic implementation of projects in close co-operation with promoters and designated shareholders. In certain cases, the Company provides negotiated equity on behalf of the Ashok Leyland/Hinduja Group as commitment to the sustained results of its services. The Company has developed projects at various
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stages of implementation relating to power generation, airport construction, and transportation including air cargo transportation, development of roads, airports and associated infrastructure. Through its multi-sector industry knowledge - both in the Indian and international context - ALPS plays a significant role in providing ideas and suggestions, that are based on internationally accepted and proven practices and systems, towards the formulation of reforms and policies in various industry sectors in India
Hinduja Foundries Established in 1959, Ennore Foundries is India's largest automotive jobbing foundry with production capacity of 45,000 MT in Grey Iron and 3000 MT in aluminum gravity die castings per annum. Certified to ISO - 9001 and QS 9000 Quality systems. Ennore Foundries is also largest manufacturers of Cylinder Block and Cylinder head castings in India catering to different segment like automobiles, tractors, industrial engines and power generators, product ranging from 10 kg to 300 kg in Grey Iron casting and up to 16.5. kg in Aluminum gravity die casting. Capability to adapt to emerging trends and absorb new technologies, competent engineering skills and expertise, a strong metallurgy base,
uncompromising quality consciousness and dedicated team work have all contributed to create a sound and solid base for Ennore Foundries in the foundry industry. With these systems in credit, Ennore Foundries is always ahead of customer needs. Corporate Philosophy Page 20
We believe that our impressive strides in the marketplace stem in equal parts from our proactive approach and our customers' unstinting support, earned the only way we know: by giving our customers the most appropriate transport solutions for each of their applications, and by backing them up with consultancy, finance, driver training and a responsive after-market network. We are conscious of the fact that vehicles are more than just a means of transporting people and goods; we understand that they have a deep and far-reaching impact on society, the national economy and the environment.
We have, therefore, always endeavored to engineer products and systems that promote progress on all these fronts. We firmly believe that this honest approach will make the Ashok Leyland marquee the symbol of the very best in transportation, today and tomorrow. which will result in revaluation surplus leaving those with revaluation deficits still at depreciated historical cost.
OUR PRODUCTS :
BUSES
DEFENCE & SPECIAL VEHICLES ENGINES TRUCKS
Leaders in the Indian bus market, offering unique models such as CNG, Double Decker and Vestibule bus.
Viking BS - II
Viking BS - III
Viking BS II
12 M Bus - BS II
Cheetah BS-III
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Cheetah BS - II
Panther BS - II
Lynx BS-II
Multi-axle Vehicles
Tractors
TRUCKS
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ENGINES
Engine Dealerships
TRUCKS
BUSES
Diesel engines for Industrial, Genset and Marine applications, in collaboration with technology leaders.
Genset Application Engines ranging from 15KVA to 250KVA > Industrial Segment > Hospitals / Clinics > Commercial / Residential Complexes
Industrial Application Engines with power rating from 40PS to 200PS. > Front End Loaders > > Excavators > > Compactors > > Pavers > > Road Sweepers
Marine Application Engines with power rating from 58PS to 193PS > Trawlers, Pure -Seiners, Gillnetters > Sailing Vessels > Marine generating sets > Pavers
DG Sets for exports Diesel and Natural Gas gensets trom 15KVA - 250KVA > Industrial Segment > Theatres > Hospitals / Clinics > Shopping mall / Offices > Commercial / Residential Complexes > Rice Mills > Hotels / Restaurants
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Major milestones in India's commercial vehicle industry ourtesy Ashok Leyland 1966 1967 1968 1979 1980 1982 1992 Introduced full air brakes Launched double-decker bus Offered power steering in commercial vehicles Introduced multi-axle trucks Introduced the international concept of integral bus with air suspension Introduced vestibule bus Won self-certification status for defense supplies
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Received ISO 9002 India's first CNG powered bus joined the BEST fleet Received ISO 14001 certification for all manufacturing units Launched hybrid electric vehicle
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Postulates or assumptions made to personal judgment used in the application of the correction and postulates. TYPES OF FINANCIAL ANALYSIS We can classify various types of financial analysis into different categories depending upon The material use The method of operation/ modes operandi of analysis According to material use of financial analysis is of two types External Analysis Internal Analysis EXTERNAL ANALYSIS The analysis is not done by outsiders who do not have access to the detailed internal accounting records of the business firm do not do the analysis. These outsiders include investors, potential investors, creditors, potential creditors, government agencies, credit agencies and the general public for financial analysis these external parties is to the firm depend almost entirely on the published financial statements. Thus surveys only limited purpose. However the recent changes the government regulation requiring business firm to make available more detailed information to the public through audited publish account has considerably improved the position of the external analysis. INTERNAL ANALYSIS The analysis conducted by the persons who have access to the internal accounting records of a business firm is known as internal analysis. Such an analysis can therefore be performed by executives and employee of the organization as well as government agencies which have statutory powers vested in them. Financial analysis that can be affected depending upon the purpose to be achieved. On the basis of methods of operation According to the methods of operation followed in the analysis, financial analysis can also of two types. Horizontal analysis Vertical analysis Horizontal Analysis Page 26
This makes to possible to focus attention on items have changed significantly during period under review. It is also called as dynamic analysis. It refers the comparison of financial data of company several years. The figures for this type of analysis are present horizontally over a number of columns. The figures of various years compared with standard base year. A base year chooses as beginning point. Vertical Analysis It refers to the study of relationship of the various items in the financial statements of one accounting period. In this type of analysis the figures from financial statements of a one year compared with a base selected from the same years statements. It is also known as static analysis.
Procedure of financial statement analysis There are three steps involved in the analysis of financial statements those are (1) Selection (2) Classification (3) Analysis The first step involves selection of information relevant to the purpose of analysis of financial statements. The second step involved in the methodical classification of the data and third step included drawing of interest and conclusions. The following procedure is adopted for the analysis and Analysis of financial statements The analyst should acquaint himself with the principles and postulates of accounting. He should know the plans and policies of the management so that he may be able to find out whether these plans are properly executed or not. The extent of analysis should be determined so that the spear of work may be decided. The aim is to find out the earning capacity of the enterprise then analysis income statement will be under taken on the other hand if financial position is to be studied then balance sheet analysis is required. The financial data given in the statement should be reorganized and rearranged. It will involve the grouping of similar data under same heads, breaking down of individual components of statements according to nature. The data is reduced to a standard form. Page 27
A relationship is established among financial statements with the help of tools and techniques of analysis such as ratios, trends. The information interpreted in a simple and understandable way. The significance and utility of financial data is explained for helping in decision making. The conclusions drawn from Analysis are presented to be management the form of report. Objectives of Financial Statement The Financial Statement are the source of information on the basis of which conclusion are drawn about the profitability and financial position of a concern. They are the major means employed by firms to present their financial position of owners, creditors and the general public. The primary objective of principles Board of America State the following objectives of financial statements. Obligations of a business firm. To provide reliable information about changes such economic resources and obligations to provide reliable financial information about economic resources and. To provide financial information that assists in estimating the earning potentials of business. To disclose to the extent possible other information to the financial statements that is relevant to the needs of the users of these statements. To provide reliable information about changes in net resources arising out of business activities. Characteristics of Ideal Financial Statements The financial statements are prepared with a view to depict financial position of the concern. A proper analysis and Analysis of these statements enables a person to judge the profitability of financial strength of the business. The financial statement should be prepared in such a way that they are able to give a clear and orderly picture of the concern. The ideal financial statements have the following characteristics. Depict the Financial Position The information contained in the financial statements should be such the true and correct idea is taken about the financial positions of the concern. No material should be with held while preparing these statements. Effective Presentation Page 28
The financial statements should be relevant to the objectives of the enterprise. This will be possible when the person preparing these statements is able to properly utilize the account information. The information, which is not relevant to the statement, should be avoided. Otherwise it will be difficult to make a distinction between relevant and irrelevant data. Attractive The financial statement should be prepared in such a way the important information is underlined so that it attracts the eye of the reader. Easiness Financial statements should be easily prepared. The balances of different ledger accounts should be easily taken to these statements. The calculation work should be minimum possible while preparing these statements. The size of the statements should not be very large will enable the saving of time in preparing the statements. Comparability The results of financial analysis should be in a way that can also be in compared with the figures of other concerns of the same nature. Analytical Presentation The information should be analyzed in such a way that similar data is presented at the same place a relationship can be established in similar type of information. This will be helpful in analysis and Analysis of data. Brief Possible, the financial statements should be presented in brief. The reader will be able to form an idea about the figures. On the other hand, if figures are given in details then it will become difficult to judge the working of the business. Promptness The financial statement should be prepared and presented at the earliest possible, immediately at the close financial year, statements should be ready. Importance of Financial Analysis The financial statements are mirrors, which reflect the financial position operating strength or weakness of the concern. The statements are useful to Management, Investor, Creditors, Bankers, Workers, and Government and public and large. George O may points out the following major uses of financial statementsPage 29
As a report of steward ship As basis of fiscal policy To determine the legality of dividends As guide to advice divided action As a basis for the granting of credit As information for prospect investors in an enterprise As a guide to the value of investment already As a aid to government supervision As a basis for price or rate regulation As basis for taxation
The utility of financial statement to different parties Management The financial statements are useful for assessing the efficiency for different cost centers. The management is able to exercise cost control through these statements. The efficient is able to decide the notice of the management. The Management is able to decide the course of action to be adopted in future. Creditors The trade creditors are to be paid in a short period this liability is met over of current assets. The creditors will be interested in current solvency of the concern. The calculation of current ratio and liquid ratio will enable the creditors to assess urgent financial position of the concern in relation to their debts. Bankers The Bankers are interest to see the loan amount is secure and the customer is also able to pay the interest regularly. The bankers will analysis the balance sheet to determine financial strength of the concern and P&L A/c will also be studied to find out the earning position. These statements also help the bankers to determine the amount of securities it will ask from the customers as a cover for the loans. Investor The investors include both short term and long-term investors. They are interested payments in the security of principle amount of loan and regular interested payments in the concern. The investors will study the long-term solvency of the concern will the help of financial position but it will also study future prospects and expansion of the concern. The possibility of paying back the loan amount in the fact of liquidation of the concern is also taken into consideration. Page 30
Trade Association This association provides service and protection to the member. They may analysis the financial statements for the purpose of providing facilities to these members. They may develop standard ratios and design uniform system of accounting. Stock Exchange The stock exchange deals in purchase and sale of different securities of different companies. The financial statement enables the stockbrokers to judge the financial position of different concerns. The fixation of prices for securities etc., are also based on this statement. Methods of devices of Financial Analysis The analysis and Analysis of financial statements issued to determine the financial position and result of operations as well. A numbers of method of devices are used to study the relationship between different statements. An effort is made to use those devices, which clearly analyze the position of the enterprise. The following methods of analysis are generally used. Comparative Statements Tend Analysis Common Size Statements Fund flow Analysis Cash flow Analysis Ratio Analysis The methods we are using in this study are Comparative balance sheet and Common-Size statements, these two are suitable to our study. If you go briefly about these methods. Comparative Statements The comparative financial statements are statements of the financial position at different periods of time. The elements of financial position are shown in comparative forms so as to give an idea of financial position at two on more periods. Any statements prepared in a comparative form for financial analysis purposes. Not only the comparison of the figures of two periods but also be relationship between balance
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sheet and income statement enables an in depth study of financial position and operative results. The comparative statements may show. Absolute figures (rupees amount) Changes in absolute figure that is increase or decrease in absolute figures. Absolute data in term of percentages. The analysis is able to draw useful conclusions when figures are given in a comparative position. The figures of sales for a quarter, half-year or one year may tell only the present position of sales efforts. When sales figures of current periods of time, similarly, comparative figures will indicates the trend and direction of financial position and operating results. The financial data will be comparative only when same accounting principles are used in preparing these statements. In case of any deviation in the use of accounting principles this fact must be mentioned at the foot of financial statements and the analysis should be careful in using these statements. The two comparative statements are
Comparative Balance Sheet The Comparative balance sheet analysis is the study of the trend of the same items, group of items and computed items in two or more balance sheets of the same business enterprise on different dates. The changes in periodic balance sheet items reflect the conduct of business. The changes can be observed by comparison of the balance sheet at the beginning and at the end of a period and these changes can help in forming an opinion about the progress of an enterprise. The comparative balance sheet has two columns for the data of original balance sheet. A third column is used to shown increased in figures. The fourth column may be added for giving percentages of increases or decreases. Guide lines for Analysis of Comparative Balance Sheet
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While interpreting Comparative Balance Sheet the interpreter is expected to study the following aspects Current financial position and liquidity position. Long-term financial position. Profitability of the concern.
For studying current financial position or short-term financial position of a concern, one should the working capital in both the years. The excess of current assets over current liabilities will give the figures of working capital. The increase in working capital will mean improvement in the current financial position of the business. An increase in current assets complained by the increase in current liabilities of the same amount will not shown by provement in the short-term financial position. The long-term financial position of the concern can be analyzed by studying the changes in fixed assets, long-term liabilities and capital. The proper financial policy of concern will be to financial fixed assets by the financial institutions or issue of fresh share capital. An increase in fixed assets should be compared to the increase in long-term loans and capital. It is the increase in fixed assets is more the increase in long-term securities then part of fixed assets has been financed from the working capital. On the other hand, if the increase in long-term securities is more than the increase in fixed assets the fixed assets have not only been financed from long-term sources but part of working capital has also been financed from long-term sources. A wise policy will be finance fixed assets by raising long-term funds. The next aspect to be studied in comparative balance sheet question is the profitability of the concern. The study of increase or decrease in retained earnings various resources and surpluses will enable the interpreter to see whether the profitability has improved or not. An increase the balance sheet of profit and loss accounting and other resources created from profits will means an increase in profitability to the concern. After studying various assets and liabilities an opinion should be formed about the financial position of the concern. One cannot say if shortterm financial position is good then long-term financial position must be given at the end. Comparative Income Statement Page 33
The comparative income statement gives and idea of the progress of a business over a period of time. The changes in absolute data in money values and percentages can be determined to analyze the profitability of the business like comparative balance sheet income statement also has four columns. First two columns give figures of various items for two years third and fourth columns are used to show increase or decrease in figures in absolute amounts and percentages respectively. Financial Analysis The term financial analysis, also known as analysis and Analysis of financial statements, Refers to the process of determining financial strengths and weaknesses of the firm by establishing Strategic relationship between the items of the profit and loss account, balance sheet and other Operative data. The purpose of financial analysis is to diagnose the information contained in financial Statements so as to judge the profitability and financial soundness of the firm. Financial statements Analysis is an attempt to determine the significance and meaning of the financial statements analysis is an attempt to determine the significance and meaning of the financial statement data so that forecast May be made of the future earnings, ability to pay interest and debt maturities(both current and long Term) and profitability of sound dividend policy. Fund flow Analysis Funds flow management is a method by which we study changes in the financial position of business enterprises between beginning and ending financial statements dates. Hence, the funds flow management is prepared by comparing two balance sheets and with the help of such other information derived from the accounts as may be needed. Broadly speaking, the preparation of a funds flow management. Trend Analysis Trend analysis involves computation of index numbers of movements of various financial items in the financial statement for a number of periods. It helps in understanding the nature and rate of movements in various financial factors. However, conclusions should not be drawn on the basis of a single trend. Trends of related items should be carefully studied. Due weight age should be given to extraneous factors such as government policy, economic conditions etc. they can affect the trend significantly. Page 34
Cash flow Analysis Cash Flow statement is a statement which describes the inflows (sources) and out flows (uses) of cash and cash equivalents in an enterprise during a specified period of time. Such a statement enumerates net effects of the various business transactions on cash and its equivalents and takes in to account receipts and disbursements of cash. A cash flow statement summary the cases of changes cash position of business enterprise between dates of two balance sheets. According to AS- 3 (Revised), an enterprise should prepare a cash flow statement and should present it for each period for which financial statements are prepared. The terms cash, cash equivalents and cash flows are used in this statement with the following meanings. Ratio Analysis Ratio analysis is a widely used tool of financial analysis. It is defined as the systematic used of ratio to interpret the financial statement so that the strengths and weaknesses of a firm as well as its historical performance and current financial condition can be determined.
A STUDY ON COMPARATIVE BALANCE SHEET IS ASHOK LEY LAND COMPARATIVE BALANCE SHEET: 2006-07
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PARTICULARS
Year-2006
SOURCES OF FUNDS(A) Share capital 23431000 Reserve & surplus Secured loans Unsecured loans Sales tax deferred liability Provision for deferred tax liability TOTAL 31796552.66 9103918.85 5000000 26393601.4 1987112 97712184.91
APPLICATION OF FUNDS(B) Fixed assets Investments Deposits Current assets, loans& advances Preliminary TOTAL & pre8180 97712184.91 4090 127974565.61 -4090 30262380.7 -50 30.97 operative expenses 41819971 27000 4584922 51272111.91 45360574.65 27000 3896967 78685933.96 3540603.65 0 -687955 27413822.05 8.47 0 -15 53.47
INTERPRETATION
The comparative balance sheet of the company reveals that during the year 2006, there has been sound increase in current assets, loans & advances of 27413822.05 i.e., 53.47%. This fact depicts that the companys liquidity position is good. The company has increased the unsecured loan of Rs.5000000 i.e., 100%. And also there is a sound increase in secured loan of Rs.17763259.48 i.e., 195.12% while there is increase of fixed asset value to the extent of Rs. 3540603.65 i.e., 8.47%. This fact depicts that the company has diverted its loan to purchase fixed assets. On the whole, overall financial position of the company satisfactory.
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PARTICULARS
Year-2007
Year-2008
ABSOLUTE CHANGE
PERCENTAGE OF CHANGE
SOURCES OF FUNDS(A) Share capital Reserve & surplus Secured loans Unsecured loans Sales tax deferred liability Provision for deferred tax liability TOTAL 127974565.61 154045499.67 26070934.06 20.37 23431000 38514508.88 26867178.33 10000000 26483547.4 2678331 23431000 51326867.89 36200447.38 13830206 26473735.4 2783243 0 12812359.01 9333263.05 3830206 -9812 104912 0 33.27 34.73 38.3 -0.037 3.92
APPLICATION OF FUNDS(B) Fixed assets Investments Deposits Current assets, loans& 45360574.65 27000 3896967 78685933.96 4090 127974565.61 43734109 27000 4247949 106036441.67 0 154045499.67 -1626465.65 0 350982 27350507.71 -4090 26070934.06 -3.59 0 9.006 34.76 -100 20.37
X 100
INTERPRETATION
The comparative balance sheet of the company reveals that, there slight increasing comparatively previous year of Rs. 27350507.71 i.e., 34.76%. Any way the companys liquidity position is good. The company has increased the secured and unsecured loans of 9333269.05 and 3830206 i.e., 34.73% and 38.30% respectively. The companys reserves and surplus is increased by 12812359.01 i.e., 32.27%. There is short decrease in companys fixed asset value of -1626465.65 i.e., -3.59%. The preliminary and pre-operative expenses were total written off. On the whole, overall financial position of the company is satisfactory.
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PARTICULARS SOURCES OF FUNDS(A) Share capital Reserve&surplus Secured loans Unsecured loans Sales tax deferred liability Provision for deferred tax liability TOTAL Fixed assets Investments Deposits Current assets, loans&
Year-2008
Year-2009
ABSOLUTE CHANGE 0 21294335.15 18152773.63 3980539 105456.6 -88784.1 43444320.28 3681826 0 492953 39269541.28 0 43444320.28
PERCENTAGE OF CHANGE 0 41.49 50.15 28.78 0.4 -3.19 28.20 8.42 0 11.6 37.03 0 28.20
23431000 51326867.89 36200447.38 13830206 26473735.4 2783243 154045499.67 43734109 27000 4247949 106036441.67 0 154045499.67
23431000 72621203.04 54353221.01 17810745 26579192 2694458.9 197489819.95 47415935 27000 4740902 145305982.95 0 197489819.95
APPLICATION OF FUNDS(B)
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INTERPRETATION
The comparative balance sheet of the company reveals that, there were increase of current assets, loans & advances of Rs.39269541.28 i.e., 37.03%. Which depicts that the companys liquidity position is satisfactory? There is a sound increase in secured loans value of 18152773.63 i.e., 50.15%. and also increase in unsecured loan of Rs.3980539 i.e., 28.78%. There is an increase in fixed asset value of Rs.3681826 i.e., 8.42%. This fact depicts that the company is diverting its loan to purchase fixed asset. There is increase in increasing rate of reserves & surplus of Rs.21294335.15 i.e., 41.49%. This depicts the good profitability of the company. On the whole, overall financial position of the company satisfactory.
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COMPARATIVE BALANCE SHEET: 2009-10 PARTICULARS SOURCES OF FUNDS(A) Share capital Reserve&surplus Secured loans Unsecured loans Sales tax deferred 23431000 72621203.04 54353221.01 17810745 26579192 2694458.90 23431000 82985086.60 46893584.12 25692270.90 26579192 3809447 0 10363883.56 -7459636.89 7881525.9 0 1114988.1 0 14.27 -13.72 44.25 0 41.38 Year-2009 Year-2010 ABSOLUTE CHANGE PERCENTAGE OF CHANGE
197489819.95
209390580.62
11900760.67
6.026
APPLICATION OF FUNDS(B) Fixed assets Investments Deposits Current assets, loans& advances TOTAL 47415935 27000 4740902 145305982.95 197489819.95 76281546.5 27000 6277902 126804132.12 209390580.62 28865611.5 0 1537000 -18501850.83 11900760.67 60.88 0 32.42 -12.73 60.26
X 100
INTERPRETATION
The comparative balance sheet of the company reveals that, there is decrease in current assets, loans& advances of Rs. -18501850.83 i.e., -12.73% . This fact depicts that the company is losing its liquidity. There is increase in the unsecured loan value of Rs.7881525.9 i.e., 44.25% and we can see the decrease in secured loan of Rs.-7459636.89 i.e., -13.72%. There is a sound increase in the companys fixed asset value of Rs.28865611.5 i.e., 60.88% and also increase in deposits of the company of Rs.1537000 i.e., 32.42%. The above fact depicts that the company is diverting its loan amount to purchase fixed assets. There is a decrease in increasing rate of reserves & surplus of 14.27%. This amounted 10363883.56. On the which, overall financial position of the company satisfactory.
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COMPARATIVE BALANCE SHEET: 2010-11 PARTICULARS SOURCES OF FUNDS Share capital Reserve&surplus Secured loans Unsecured loans Sales tax deferred 23431000 82985086.60 46893584.12 25692270.90 26579192 3809447 23431000 85218617.33 41498464.30 36181575.20 26579192 5335491.28 0 2233530.73 -5395119.82 10489304.3 0 1526044.28 0 2.69 -11.50 40.82 0 40.06 Year-2010 Year-2011 ABSOLUTE CHANGE PERCENTAGE OF CHANGE
209390580.62
218244340.11
8853759.49
4.228
APPLICATION OF FUNDS Fixed assets Investments Deposits Current assets, loans& advances TOTAL 76281546.5 27000 6277902 126804132.12 209390580.62 98043419.75 27000 7655913 112518007.36 218244340.11 21761873.25 0 1378011 -14286124.76 8853759.49 28.63 0 21.95 -11.27 4.228
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INTERPRETATION
The comparative balance sheet of the company reveals that, there is decrease in current assets, loans& advances of Rs. 14286124.76 i.e., -11.27% . This fact depicts that the company is losing its liquidity. There is increase in the unsecured loan value of Rs.36181575.20 i.e., 40.82% and we can see the decrease in secured loan of Rs.41498464.30 i.e., -11.50%. There is a sound increase in the companys fixed asset value of Rs.98043419.75 i.e., 28.63% and also increase in deposits of the company of Rs.7655913 i.e., 21.95%. The above fact depicts that the company is diverting its loan amount to purchase fixed assets. There is a decrease in increasing rate of reserves & surplus of 2.69%. This amounted 85218617.33. position of the company satisfactory. On the which, overall financial
COMMON SIZE BALANCE SHEET: 2006-07 PARTICULARS Year-2006 PERCENTAGE OF CHANGE SOURCES OF FUNDS(A) Share capital Reserve& surplus Secured loans Sales liability Provision for deferred tax liability TOTAL 51833191.13 100 71941563.48 100 0 0 1188516 1.65 tax deferred 23431000 4514157.35 4153804.78 19734229 45.2 8.71 8.01 38.08 23431000 15921035.29 8119302.71 23281709.48 32.57 22.13 11.29 32.36 Year-2007 PERCENTAGE OF CHANGE
APPLICATION OF FUNDS(B) Fixed assets Investments Deposits Current assets, loans& advances Preliminiary & preoperative expenses TOTAL 51833191.13 100 71941563.48 100 16360 0.04 12270 0.02 33320851 53520 1521927 16920533.13 64.28 0.1 2.94 32.64 30856945 27000 1554192 39491156.48 42.89 0.04 2.16 54.89
INTERPRETATION
The analysis of current assets, loans & advances of both the years shows that the percentage of current assets, loans & advances to that of total assets is 32.64% in 2006, and increased to 54.89% in the year 2007 and in the both the years the company is having adequate working capital. The analysis of fixed assets of both the years shows that the percentage of fixed assets to that of total assets is 64.28% in the year 2006 and it reduced to 42.89% in the year 2007. Companys reserves capacity is very good. Because percentage of reserves to that of total liabilities is 8.7% in 2006, it increased to 22.13% in 2007.
PERCENTAG PARTICULARS Year-2007 E CHANGE SOURCES OF FUNDS(A) Share capital Reserve& surplus Secured loans Unsecured loans liability Provision TOTAL Fixed assets Investments Deposits Current loans& advances Preliminary & pre- 12270 operative expenses TOTAL 71941563.48 100 97712184.91 0.02 8180 for 1188516 71941563.48 30856945 27000 1554192 assets, 39491156.48 1.65 100 42.89 0.04 2.16 54.89 1987112 97712184.91 41819971 27000 4584922 51272111.91 23431000 15921035.29 8119302.71 0 32.57 22.13 11.29 0 32.36 23431000 31796552.66 9103918.85 5000000 26393601.4 OF Year-2008
PERCENTAG E CHANGE 23.98 32.54 9.32 5.12 27.01 2.03 100 42.80 0.03 4.69 52.47 0.01 100 OF
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INTERPRETATION The analysis of current assets, loans & advances of both the years shows that the percentage of current assets, loans & advances to that of total assets is 54.89% in 2007 and it decreased to 52.47% in 2008 and in the both the years the company is having adequate working capital. The analysis of fixed assets of both the years shows the percentage of fixed assets to that of total assets is 42.89% in 2007 and 42.80% in 2008. Companys reserves capacity is very good. Because percentage of Reserves &surplus to that of total liabilities is 22.13% in the year 2007 and it increased to 32.54% in the year 2008.
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COMMON SIZE BALANCE SHEET: 2008-09 PERCENTAGE OF CHANGE 23.98 32.54 9.32 5.12 27.01 2.03 100 42.80 0.03 4.69 52.47 0.01 100 PERCENTAGE OF CHANGE 18.31 30.10 20.99 7.81 20.69 2.1 100 35.44 0.02 3.04 61.49 0.01 100
PARTICULARS
Year-2008
Year-2009
SOURCES OF FUNDS(A) Share capital Reserve& surplus Secured loans Unsecured loans Sales liability Provision TOTAL Fixed assets Investments Deposits Current loans& advances Preliminary & pre- 8180 operative expenses TOTAL 97712184.91 127974565.61 4090 for 1987112 97712184.91 41819971 27000 4584922 assets, 51272111.91 2678331 127974565.61 45360574.65 27000 3896967 78685933.96 deferred tax liability APPLICATION OF FUNDS(B) tax 23431000 31796552.66 9103918.85 5000000 23431000 38514508.88 26867178.33 10000000 26483547.40
deferred 26393601.4
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INTERPRETATION The analysis of current assets, loans & advances of both the years shows that the percentage of current assets, loans & advances to that of total assets is 52.47% in 2008 and it increased to 61.49% in the year 2008. And in the both the years the company is having adequate working capital. The analysis of fixed assets of both the years shows that the percentage of fixed assets to that of total assets is 42.80% in 2008 and 35.44% in 2009. Companys reserve capacity is very good. Because percentage of Reserves & surplus to that of total liabilities is 32.54% in 2008 and 30.10% in 2009 .
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COMMON SIZE BALANCE SHEET: 2009-10 PARTICULARS Year-2009 PERCENTAGE OF CHANGE 18.31 30.10 20.99 7.81 20.69 Year-2010 PERCENTAGE OF CHANGE 15.21 33.32 23.5 8.98 17.19
SOURCES OF FUNDS Share capital Reserve& surplus Secured loans Unsecured loans Sales liability Provision for deferred 2678331 tax liability TOTAL 127974565.61 100 154045499.67 100 2.1 2783243 1.8 tax 23431000 38514508.88 26867178.33 10000000 23431000 51326867.89 36200447.38 13830206 26473735.4
deferred 26483547.40
APPLICATION OF FUNDS Fixed assets Investments Deposits Current loans& advances TOTAL 127974565.61 100 154045499.67 100 45360574.65 27000 3896967 assets, 78685933.96 35.44 0.02 3.04 61.49 43734109 27000 4247949 106036441.67 28.39 0.02 2.76 68.83
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Each asset value Common size = Total asset value INTERPRETATION The analysis of current assets, loans & advances of both the years shows that the Percentage of current assets, loans & advances to that of total assets is 61.49% in 2009 and it increased to 68.83% in the year 2010 and in the both the years the company is having adequate working capital. The analysis of fixed assets of both the years shows that the percentage of fixed assets to that of total assets is 35.44% in 2009 and 28.39% in 2010. Companys reserve capacity is very good. Because percentage of reserves & surplus to that of total liabilities is 30.10% in 2009 and increased to 33.32% in 2010. X 100
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PARTICULARS
Year-2010
PERCENTAGE OF CHANGE
Year-2011
PERCENTAGE OF CHANGE
SOURCES OF FUNDS(A) Share capital Reserve& surplus Secured loans Unsecured loans Sales liability Provision for deferred 2783243 tax liability TOTAL 154045499.67 100 197489819.95 100 1.8 2694458.90 1.37 tax 23431000 51326867.89 36200447.38 13830206 15.21 33.32 23.5 8.98 17.19 23431000 72621203.04 54353221.01 17810745 26579192 11.86 36.77 27.52 9.02 13.46
deferred 26473735.4
APPLICATION OF FUNDS(B) Fixed assets Investments Deposits Current 43734109 27000 4247949 assets, 106036441.67 28.39 0.02 2.76 68.83 47415935 27000 4740902 145305982.95 24.01 0.01 2.4 73.58
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INTERPRETATION The analysis of current assets, loans & advances of both the years shows that the percentage of current assets, loans & advances to that of total assets is 68.83% in 2010 and increased to 73.58% in 2011 and in the both the years the company is having adequate working capital. The analysis of fixed assets of both the years shows that the percentage of fixed assets to that of total assets is 28.39% in 2010 and it decreased to 24.01% in the year 2011. Companys reserve capacity is very good. Because percentage of reserves & surplus to that of total liabilities is 33.32% in 2010 and increased to 36.77% in 2011.
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A STUDY ON COMPARATIVE INCOME STATEMENT IS ASHOK LEYLAND COMPARATIVE INCOME STATEMENT: 2006-07 PARTICULARS INCOME(A) Sales Other receipts 165084742 9842450.58 244225722.08 79140980.08 13846059.16 105203.20 4003608.58 105203.20 47.94 40.68 100 47.59 Year-2006 Year-2007 ABSOLUTE PERCENTAGE CHANGE OF CHANGE
Increase/ decrease in finished 0 stock TOTAL 174927192.58 EXPENDITURE(B) Consumption of raw material & 111692719.74 store Manufacturing expenses 13872935.93 Taxes & duties Administrative expenses Interest & finance charges Depreciation Misc expenses Decrease in finished stock TOTAL Profit before tax for the year(AB) Excess provision for taxation of earlier year Provision for deferred tax liability Profit after taxation (PAT) Add B/f previous year 31571594.44 2662990.56 616676 1826842 4090 150843.20 162398691.87 12528500.71 -66893.23 443536 12151857.94 4514157.35
258176984.44 83249791.86
170317647 18251986.27 44979966.63 5282272.94 486760.23 1852573 4090 0.00 17001688.37 327575 798596 15875517.37 15921035.29 31796552.66
58624927.26 4379050.34 13408372.19 2619282.38 -129915.77 25731 0 -150843.20 4473187.66 394468.23 355060 3723659.43 11406877.94 15130537.37
52.49 31.57 42.47 98.36 -21.07 1.41 0 -100 48.51 35.7 589.69 80.05 30.64 252.69 90.79
241175296.07 78776604.20
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INTERPRETATION
The comparative income statement of the company reveals that, during the year sales are increased by 79140980.08. i.e., 47.94% and also other receipts increased by 40.68%. While there is increase in sales of 47.94%, the consumption of raw material also increased by 58624929.26 i.e., 52.49%. There is a sound increase of administration expenses of 2619282.38 which is 98.36%. Any way the profit before tax (PBT) of the company increased by 4473187.66 i.e., 35.7%. Overall the profitability of the company is more than satisfactory.
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COMPARATIVE INCOME STATEMENT: 2007-08 PERCEN TAGE OF CHANGE -3.64 -43.32 3684.85
PARTICULARS INCOME(A) Sales Other receipts Increase/ decrease in finished stock TOTAL EXPENDITURE(B)
Year-2007
Year-2008
ABSOLUTE CHANGE
-11023390.67 -4.27
Consumption of raw material & 170317647 store Manufacturing expenses 18251986.27 Taxes & duties Administrative expenses Interest & finance charges Depreciation Misc expenses Decrease in finished stock TOTAL Profit before tax for the year(A-B) 44979966.63 5282272.94 486760.23 1852573 4090 0.00 241175296.07 17001688.37
192965699.31 28683619.81 5909210 6828216.66 2654443.92 2699138.85 4090 0.00 239744418.55 7409175.22 0.00
22648052.31 10431633.54
13.29 57.15
-39070756.63 -86.86 1545943.72 2167683.69 846565.85 0 0 -1430877.52 -9592513.15 -327575 29.27 445.33 45.69 0 0 -0.59 -56.42 -100
Excess provision for taxation of 327575 earlier year Provision for deferred tax liability Profit after taxation (PAT) Add B/f previous year Balance profit/loss reserve & surplus carried 798596 15875517.37 15921035.29 to 31796552.66
Page 58
INTERPRETATION
The comparative income statement of the company reveals that, during the year there is a short decline of sales by -8901848.63 i.e., -3.64% and as well as decline of other receipts of -5998119.84 i.e., -43.32%. The above decline in sales caused to increase in finished stock by 3876577.8 i.e., 3684.85%. While there is decline in sales by -3.64%, the consumption of raw material increased only 13.29% during the year interest & financial charges of the company increased by 2167683.69 i.e., 445.33%. With the above results, the company faces the loss of -56.42% (PBT). On the whole, overall profitability of the company satisfactory.
Page 59
COMPARATIVE INCOME STATEMENT: 2008-09 PARTICULARS Year-2008 Year-2009 ABSOLUTE CHANGE PERCEN TAGE OF CHANGE 30.56 12.99 -71.48 28.35 23.44 38.23 -64.35 60.57 61.28 5.88 0 24.33 158.65 -84.82 183.7 100 90.72 21.13 33.27
INCOME(A) Sales Other receipts 235323873.45 7847939.32 307228040.60 8867291.63 1135483 317230815.23 238204911.77 39648256.10 2106623 10964028.87 4281164.47 2857930.01 4090 298067004.22 19163811.01 104912 19058899.01 6246540 12812359.01 38514508.88 51326867.89 71904167.15 1019352.31 -2846298 70077221.46 45239212.46 10964636.29 -3802587 4135812.21 1626720.55 158791.16 0 58322585.67 11754635.79 -586307 12340942.79 6246540 6094402.79 6717956.22 12812359.01
Increase/ decrease in finished 3981781 stock TOTAL 247153593.77 EXPENDITURE(B) Consumption of raw material & 192965699.31 store Manufacturing expenses 28683619.81 Taxes & duties Administrative expenses Interest & finance charges Depreciation Misc expenses TOTAL 5909210 6828216.66 2654443.92 2699138.85 4090 239744418.55
Profit before tax for the year(A- 7409175.22 B) (-)Provision for deferred tax 691219 liability 6717956.22 (-) Provision for taxation Profit after taxation (PAT) Add B/f previous year 0.00 6717956.22 31796552.66
Page 60
INTERPRETATION
The comparative income statement of the company reveals that during the year sales are increased by 71904167.15 i.e., 30.56% and also increased in other receipts of 1019352.31 i.e., 12.99%. Consumption of raw material and manufacturing expenses increased by 45239212.46 and 10964636.29 i.e., 23.44% & 38.23% respectively. During the year administration and Interest & financial charges are increased by 4135812.21 and 1626720.55 i.e., 60.57% & 61.28% respectively. There is a sound increase in Profit before tax of 11754635.79 i.e., 158.65%. On the whole, the profitability of the company is satisfactory.
Page 61
COMPARATIVE INCOME STATEMENT: 2009-10 PARTICULARS INCOME(A) Sales Other receipts 307228040.6 0 8867291.63 526034638 3418411.56 4281651 533734700.56 218806597.4 -5448880.07 3146168 71.22 -61.45 277.08 Year-2009 Year-2010 ABSOLUTE CHANGE PERCENT AGE OF CHANGE
Increase/ decrease in finished 1135483 stock TOTAL 317230815.2 3 EXPENDITURE(B) Consumption of raw material & 238204911.77 store Manufacturing expenses 39648256.10 Taxes & duties Administrative expenses Interest & finance charges Depreciation Misc expenses TOTAL 2106623 10964028.87 4281164.47 2857930.01 4090 298067004.22
216503885.33 68.25
429689292.09 55302431 4091580 12940671.82 7453592 2946126 0.00 512423692.91 21311007.65 -88784.10 21399791.75 105456.60 0.00 21294335.15 51326867.90 72621203.05
191484380.3 2 15654174.90 1984957 1976642.95 3172427.53 88196 -4090 214356688.7 2147196.63 -193696.1 2340892.73 10556.60 -6246540 8481976.13 12812359.02 21294335.15
80.39 39.48 94.22 18.03 74.10 3.09 -100 71.92 11.2 -184.63 12.28 100 -100 66.20 33.27 41.49
Profit before tax for the year(A- 19163811.01 B) (-)Provision for deferred tax 104912 liability 19058899.01 (-)Provision for sales tax liability (-) Provision for taxation Profit after taxation (PAT) Add B/f previous year 0.00 6246540 12812359.01 38514508.88
Page 62
INTERPRETATION
The comparative income statement of the company reveals that during the year sales of the company increased by 218806597.4 i.e., 71.22%. And also other receipts are decreased by -61.45%.Consumption of raw material and manufacturing expenses are increased by 191484380.32 and 15654174.9 i.e., 80.39% & 39.48% respectively. During the year taxes & duties and interest & financial charges are increased by 94.22% and 74.10% respectively. There is increase in profit before taxes of the company by 2147196.63 i.e., 11.2%. On the whole, overall profitability of the company satisfactory.
Page 63
COMPARATIVE INCOME STATEMENT: 2010-11 PARTICULARS INCOME(A) Sales Other receipts 526034638 3418411.56 600575514 5100343.92 5602655 611278512.92 74540876 1681932.36 1321004 77543812.36 14.17 49.20 30.85 14.53 Year-2010 Year-2011 ABSOLUT PERCENTA E CHANGE GE OF CHANGE
Increase/ decrease in finished 4281651 stock TOTAL 533734700.56 EXPENDITURE(B) Consumption of raw material & 429689292.09 store Manufacturing expenses 55302431 Taxes & duties Administrative expenses Interest & finance charges Depreciation TOTAL Profit before tax for the year(A-B) (-)Provision liability for deferred 4091580 12940671.82 7453592 2946126 512423692.91 21311007.65
490782880.36 65129369.08 7593753.11 17116744.07 9774017.65 3942364 594339128.27 16939384.65 1114988.10 15824396.55 0.00 5460513 10363883.55 72621203.05 82985086.60
61093588.27 9826938.08 3502173.11 4176072.25 2320425.65 996238 81915435.36 -4371623 1203772.2 -5575395.2 -105456.60 5460513 10930451.60 21294335.15 10363883.55
14.22 17.77 85.59 32.27 31.13 33.82 15.99 -20.51 -1355.84 26.05 -100 100 51.33 41.49 14.27
(-)Provision for sales tax liability (-) Provision for taxation Profit after taxation (PAT) Add B/f previous year Balance profit/loss reserve & surplus carried
to 72621203.05
Page 64
INTERPRETATION
The comparative income statement of the company reveals that, during the year sales are increased by 74540876 i.e., 14.17% and other receipts also increased by 1681932.36 i.e., 49.2%. While there is increase in sales by 14.17%, the consumption of raw material also increased by 14.22%. Taxes & duties are increased by 85.59% There is a negative results in profit before tax (PBT) of the company i.e., -20.51%. On the whole, overall profitability of the company is not satisfactory.
Page 65
A STUDY ON COMMON SIZE INCOME STATEMENT IS ASHOK LEYLAND PARTICULARS INCOME(A) Sales Other receipts Increase in finished stock TOTAL EXPENDITURE(B) Consumption of raw 62172572.47 material & store Manufacturing expenses 12794469.75 Taxes & duties Administration expenses Interest & charges Depreciation Misc expenses Decrease in finished stock TOTAL 19303217 2758430.81 financial 1471658 1907066.50 4090 0.00 100411504.53 67.58 13.91 20.98 2.99 1.59 2.07 0.004 0.00 110.34 3.78 0.00 0.00 3.78 1.13 4.91 111692719.74 13872935.93 31571594.44 2662990.56 616676 1826842 4090 150843.20 162398691.87 12528500.71 -66893.23 443536 12151857.94 4514157.35 16666015.29 67.66 8.40 19.12 1.61 0.37 1.11 0.002 0.09 98.37 7.59 -0.04 0.27 7.36 2.73 10.09 92003562 10542580.72 1342058 103888200.72 100 11.46 1.46 112.92 165084742 9842450.58 0 174927192.58 100 5.96 0.00 105.96 COMMON SIZE INCOME STATEMENT: 2006-07 Year-2006 PERCENTAGE Year-2007 OF CHANGE PERCENTAGE OF CHANGE
Profit for the year before 3476696.19 tax(A-B) Excess provision for 0.00 taxation of earlier year Provision for deferred tax 0.00 liability Profit after taxation 3476696.19 Add B/f previous year 1037461.16 Balance profit/loss carried 4514157.35 to reserve & surplus
Page 66
INTERPRETATION
The common size income statement of the company reveals that, other receipts are 11.46% on sales in 2006 and 5.96% on sales in 2007. There is no change in consumption of raw material comparing on sales i.e., 67.58% in 2006 and 67.66% in 2007. Profit before tax is also increased from 3.78% on sales to 7.59% on sales during the year. Balance profit carried to balance sheet is also increased from 4.91% on sales to 10.09% on sales during the year. On the whole, overall profitability of the company satisfactory.
Page 67
COMMON SIZE INCOME STATEMENT: 2007-08 PARTICULARS INCOME(A) Sales Other receipts Increase in finished stock TOTAL EXPENDITURE(B) Consumption of raw material 170317647 & store Manufacturing expenses 18251986.27 Taxes & duties Administration expenses Interest & financial charges Depreciation Misc expenses Decrease in finished stock TOTAL(B) 44979966.63 5282272.94 486760.23 1852573 4090 0.00 69.74 7.47 18.42 2.16 0.19 0.76 0.002 0.00 192965699.31 28683619.81 5909210 6828216.66 2654443.92 2699138.85 4090 0.00 239744418.55 7409175.22 0.00 82 12.19 2.51 2.90 1.13 1.15 0.002 0.00 101.88 3.15 0.00 Year-2007 PERCENTAG Year-2008 E OF CHANGE 235323873.45 7847939.32 3981781 247153593.77 PERCENTAGE OF CHANGE
258176984.44 105.71
Profit for the year before 17001688.37 tax(A-B) Excess provision for taxation 327575 of earlier year Provision for deferred liability Profit after taxation Add B/f previous year tax 798596 15875517.37 15921035.29
Page 68
INTERPRETATION
The common size statement of the company reveals that, there is a sound increase in consumption of raw materials from 69.74% to 82% on sales during the year. The above increase is not resulted to increase the sales volume during the year. Manufacturing expenses also increased from 7.47% to 12.19% on sales. There is a decrease in profit before tax (PBT) from 6.96% to 3.15% during the year. Balance profit carried to balance sheet is increased from 13.02% to 16.37% during the year. On the whole, overall profitability of the company satisfactory.
Page 69
COMMON SIZE INCOME STATEMENT: 2008-09 PARTICULARS INCOME(A) Sales Other receipts Year-2008 PERCENTAGE Year-2009 OF CHANGE PERCENTAG E OF CHANGE 100 2.88 0.37 103.26
235323873.45 7847939.32
Increase/ decrease in finished 3981781 stock TOTAL 247153593.77 EXPENDITURE(B) Consumption of raw material 192965699.31 & store Manufacturing expenses 28683619.81 Taxes & duties Administrative expenses Interest & finance charges Depreciation Misc expenses TOTAL 5909210 6828216.66 2654443.92 2699138.85 4090 239744418.55
82 12.19 2.51 2.90 1.13 1.15 0.002 101.88 3.15 0.29 2.85 0.00 2.85 13.51 16.37
238204911.77 39648256.10 2106623 10964028.87 4281164.47 2857930.01 4090 298067004.22 19163811.01 104912 19058899.01 6246540 12812359.01 38514508.88 51326867.89
77.53 12.91 0.69 3.57 1.39 0.93 0.001 97.02 6.24 0.03 3.2 2.03 4.17 12.54 16.71
Profit before tax for the year(A- 7409175.22 B) (-)Provision for deferred tax 691219 liability 6717956.22 (-) Provision for taxation 0.00 Profit after taxation (PAT) Add B/f previous year 6717956.22 31796552.66
Page 70
INTERPRETATION
The common size income statement of the company reveals that, there is a decrease in other receipts from 3.33% to 2.88% during the year. There is also decrease in consumption of raw material & stores from 82% to 77.53% on sales during the year. Profit before tax (PBT) of the company increased from 3.15% to 6.24% on sales during the year. The balance profit carried to balance sheet remains constant during the year. On the whole, overall profitability of the company satisfactory.
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COMMON SIZE INCOME STATEMENT: 2009-10 PARTICULARS INCOME(A) Sales Other receipts Increase/ decrease finished stock TOTAL EXPENDITURE(B) Consumption of raw 238204911.77 material & store Manufacturing expenses 39648256.10 Taxes & duties Administrative expenses Interest & charges Depreciation Misc expenses TOTAL 2106623 10964028.87 77.53 12.91 0.69 3.57 1.39 0.93 0.001 97.02 6.24 0.03 3.2 0.00 2.03 4.17 12.54 16.71 429689292.09 55302431 4091580 12940671.82 7453592 2946126 0.00 512423692.91 21311007.65 -88784.10 21399791.75 105456.60 0.00 21294335.15 51326867.90 72621203.05 81.68 10.51 0.78 2.46 1.42 0.56 0.00 97.41 4.05 -0.02 4.07 0.02 0.00 4.05 9.76 13.81 Year-2009 PERCENTAG Year-2010 E OF CHANGE 100 2.88 0.37 103.26 526034638 3418411.56 4281651 533734700.56 PERCENTAG E OF CHANGE 100 0.65 0.81 101.46
Profit before tax for the 19163811.01 year(A-B) (-)Provision for deferred 104912 tax liability 19058899.01 (-)Provision for sale tax 0.00 deferment (-) Provision for taxation 6246540 Profit after taxation 12812359.01 (PAT) Add B/f previous year 38514508.88 Balance profit/loss 51326867.89 carried to reserve & surplus
Page 72
INTERPRETATION
The common size income statement of the company reveals that, there is increase in consumption of raw material & stores from 77.53% to 81.68% on sales. As results in increase of sales volume. Profit before tax (PBT) of the company decreased from 6.24% to 4.05% on sales during the year. Provision for taxation in 2009 is 2.03% on sales but it was nil in 2010. Balance profit carried to balance sheet is decreased from 16.71% to 13.81% during the year. On the whole, overall profitability of the company satisfactory.
Page 73
COMMON SIZE INCOME STATEMENT: 2010-11 PARTICULARS INCOME(A) Sales Other receipts 526034638 3418411.56 100 0.65 0.81 101.46 81.68 10.51 0.78 2.46 1.42 0.56 0.00 97.41 4.05 -0.02 4.07 0.02 0.00 4.05 9.76 13.81 600575514 5100343.92 5602655 611278512.92 490782880.36 65129369.08 7593753.11 17116744.07 9774017.65 3942364 0.00 594339128.27 16939384.65 1114988.10 15824396.55 0.00 5460513 10363883.55 72621203.05 82985086.60 100 0.85 0.93 101.78 81.718 10.84 1.26 2.85 1.63 0.66 0.00 98.96 2.82 0.19 2.63 0.00 0.91 1.73 12.09 13.82 Year-2010 PERCENTAG Year-2011 E OF CHANGE PERCENTAG E OF CHANGE
Increase/ decrease in finished 4281651 stock TOTAL 533734700.56 EXPENDITURE(B) Consumption of raw material & 429689292.09 store Manufacturing expenses 55302431 Taxes & duties Administrative expenses Interest & finance charges Depreciation Misc expenses TOTAL 4091580 12940671.82 7453592 2946126 0.00 512423692.91
Profit before tax for the year(A- 21311007.65 B) (-)Provision for deferred tax -88784.10 liability 21399791.75 (-)Provision for sale deferment (-) Provision for taxation Profit after taxation (PAT) Add B/f previous year tax 105456.60 0.00 21294335.15 51326867.90
INTERPRETATION Page 74
The common size income statement of the company reveals that, there is a no change of percentage in consumption of raw materials & stores during the year. Profit before tax (PBT) of the company decreased from 4.05% to 2.82% on sales during the year. Profit after tax (PAT) also decreased from 4.05% to 1.73% on sales during the year. Balance profit carried to balance sheet is remains unchanged i.e., 13.8% on sales during the year. On the whole, overall profitability of the company satisfactory.
Page 75
BALANCE SHEET SHOWING TRENDS IN PERCENTAGES OF ASHOK LEYLAND FOR THE YEAR 2007 TO 2011 PARTICULARS 2006 2007 2008 2009 2010 2011
SOURCES OF FUNDS Share capital Reserve& surplus Secured loans Unsecured loans 100 100 100 100 100 704.37 219.17 0 133.75 0 188.51 100 853.19 646.81 0 134.20 0 246.89 100 1137.02 871.5 0 134.15 0 297.19 100 1608.74 1308.52 0 134.69 0 381.01 100 1838.33 1128.93 0 134.69 0 403.97
Sale tax deferred 100 liability Provision for 100 deferred tax liability TOTAL 100 APPLICATION OF FUNDS Fixed assets Investments Deposits 100 100 100
Current assets,loans& 100 advances Preliminary and pre- 100 operative expenses TOTAL 100
Page 76
FINDINGS
On the basis of the analysis and Analysis of various financial statements, the following conclusions are made. The profitability position of the company is good and it can be improved by looking into the factors contributing to the companys profits. The sales of the company is not improved with the increase of consumption of raw material in the year 2007-2008. The net profit has been increasing continuously from 2007 to 2011. The overall profits are distributed to reserves and surplus. The current assets & loans and advances have been continuously increasing from 2009 to 2011. The total asset of the company has been increasing continuously. There is no increase in the value of investments from 2007 to 2011. The reserves & surplus of the company increasing continuously.
Page 77
SUGGESTIONS
On the basis of the analysis and Analysis of various financial statements, the following suggestions are made. Though the financial position is considered to be strong, the company is advised to maintain consistency in improving its reserve capacity. It is advised that the idle funds and investments has to be effectively utilized to have a good profitable position. The company needs to reduce cost of production and spend more on marketing the products to maximize their sales in indigenous market. The company Investments are very less so it is suggested to increase its investments It is suggested to improve the operating income such that they can maintain high gross profit margin. It is suggested to reduce the operating expenses in order to increase the net profit margin.
Page 78
BIBLIOGRPAHY
Books S N Maheshwari & S K Maheshwari, Financial Accounting, Vikas Publishing House Private Limited, 3rd Edition, 2006. Prasanna Chandra, Fundamentals of Financial Management, Tata Mc Graw-Hill Publishing Company Limited, 4th Edition, 2006. M Y Khan & PK Jain, Financial Management (Theory and Problems), Tata Mc Graw-Hill Publishing Company Limited, 2nd Edition, 2003. Asish K Bhattacharyya, Financial Accounting (For Business Managers), Prentice-Hall of India Private Limited, 2nd Edition, 2005. S P Jain & K L Narang, Advanced Accounting, Kalyani Publishers, 13 th Edition, 2003. Websites www.ashokleyland.com www.wikipidia.com www.scridb.com
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