Company history :1972

- Apollo Tyres Ltd. (ATL) was incorporated 28th September, 1972

As a Public Limited Company and obtained certificate of Commencement of
Business on October 24, 1972.
The Company was Promoted by Bharat Steel
Tubes, Ltd. Raunaq International Pvt.Ltd., Raunaq & Co. Pvt. Ltd., Raunaq
Singh, Mathew T.Marattukalam and Jacob Thomas.The Company manufacture
automobile tyres and tubes, camel back/retreading materials and
\Rubber conveyor belts.
- 15,00,000 No. of equity
2,50,000 No. of equity shares
shares to promoters, etc. and
46,50,000 No. of equity shares

shares issued to Bharat Steel Tubes Ltd.,

to Kerala Govt. and 13,50,000 No. of equity
associate companies. 75,000 pref. shares and
offered at par to the public in October 1975.

1978
- 35 Pref. and 13,06,200 No. of equity shares forfeited in 1977-78.
1978-79 forfeiture on 22,200 No. of equity shares annulled.

During

1980
- Forfeiture on 2,30,050 No. of equity shares annulled.
1981
-After the expiry of the original agreement the Company negotiated with
General Tire International o., U.S.A., for the renewal with General Tire
nternational Co., U.S.A., for the renewal of the technical collaboration
agreement for a further period of 5 years.
This agreement expired on
January
1987.
- Forfeiture annulled on 700 No. of equity shares during 1981-82 and on
another 610 No. of equity shares during 1981-83.
1983- 6,88,950 forfeited equity shares reissued.
1984- 3,63,700 forfeited shares reissued.
1986
-`General Tire International Corporation',
`Continental Gummi werke GmbH', West Germany.

U.S.A.

was

taken

over

by

1987
- During the year, the Company acquired interest in Gujarat Tyres Ltd., for
implementing an industrial licence to manufacture automobile tyres and tubes
in Gujarat State.
- The Company finalised a proposal for promoting a company in joint
participation for carrying on business in pipe laying, drilling, coating
contracts and other engineering, designing, consultancy and management
services.
- 6,52,000 No. of equity shares allotted at par to financial institutions
in conversion of loans.

St. Marys College of Engineering & Technology

1

1988
- The Company set up a plant with a capacity of 6.75 lakh tyres per annum at
Limda, Baroda, Gujarat at an estimated cost of Rs 168.96 crores.
- The Company promoted a new Company under the name of Raunaq Aker
Drilling, Ltd. in technical collaboration with Aker Drilling A/s, Norway.
The company was to undertake multifarious onshore and offshore drilling
services/related activities in India.
- The Company entered into an agreement with Persterp AB, Sweden for
promotion of joint venture company in the name of Gujarat Perstorp
Elektronics Ltd. It undertook manufacture of electronic grade copper clad
laminates.
1989
- Radial tyres for Maruti cars and premium tyre for trucks were launched
during the year.
- During August, the Company offered 42,01,000-12.5% secured partly
convertible debentures of Rs 100 each on Rights basis in the ratio 1
debenture : 2 Equity shares held.
Additional 6,30,150 debentures were
allotted to retain over subscription.
- The Company also issued 2,10,050 - 12.5% partly convertible debentures to
the employees' (including Indian working directors) of the Company (only
8,875 debentures were taken up). The unsubscribed portion of 2,01,175
debentures was allowed to lapse.
- Rs 35 (Part A) of the face value of each debenture was automatically and
compulsorily converted into one equity share of Rs 10 each at a premium of
Rs 25 per share.
- Rs 40 (Part B) of the face value of each debenture was automatically and
compulsorily converted into one equity share of Rs 10 each at a premium of
Rs 30 per share at the end of 12 months from the date of allotment of
debentures.
- The remaining Rs 25 (Part C) of the face value of each debenture was to
be redeemed in two instalments of Rs 10 and Rs 15 at the end of 8th and 9th
year respectively from the date of allotment of debentures.
- During September the Company issued through a prospectus 42,59,715 12.5% secured partly convertible debentures of Rs 140 each of which the
following debentures were reserved and allowed on a firm basis: (i) 4,30,000
debentures to Commonwealth Development Corporation (CDC); (ii) 1,00,000
debentures to SBI Mutual Fund and (iii) 3,57,000 debentures to UTI.
- Of the balance 33,72,715 debentures (i) 3,55,000 debentures to
shareholders of the promoter and other companies, viz., BST Mfg. Ltd.,
Bharat Gears, Ltd., Apollo Tubes, Ltd., Raunaq International Ltd., Raunaq &
Co. Pvt. Ltd., Universal Steel & Alloys Ltd and Raunaq Automotive Exports,
Ltd. (ii) 2,13,000 debentures to employees of the Company (only 650
debentures were taken up).
The remaining 20,89,715 debentures along with
5,75,000 debentures not taken up under preferential quota were offered to
the public.
Additional 6,38,935 debentures were allotted to retain over
subscription (53,550 debentures to UTI; 53,250 to promoters and 5,32,135
debentures to the public).

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- Rs 35 (Part A) of the face value of each debentures was automatically and

compulsorily converted into one equity shares of Rs 10 each at a premium of
Rs 25 per share at the end of 6 months from the date of allotment of
debentures.
- Rs 40 (Part B) of the face value of each debentures was automatically and
compulsorily converted into one equity share of Rs 10 each at a premium of
Rs 30 per share at the end of 12 months from the date of allotment of
debentures.
- Rs 65 (Part C) of the face value of each debenture was to be redeemed in
three instalments of Rs 20, Rs 20 and Rs 25 each at the end of 7th, 8th &
9th year from the date of allotment of debentures.
1991
- The Company proposed to undertake exports of LVC and farm tyres in
addition to truck tyres.
1993
- The Company undertook modernisation, upgradation of technology
installation of line balancing equipments, setting up a state of are R&D
centre, and to be financed by way of a Rights issue of non convertible
debentures with detachable warrants.
- Pref. Shares redeemed on 28.12.1990.
194,77,350 No. of equity shares
allotted in part conversion of deb. (prem. Rs 35 per share for 97,38,675
shares and Rs 40 per share for another 97,38,675 shares).
1994
- A number of high technology radial products were developed and
introduced.
The Company created distribution network of more than 2500
dealers in the country.
1995
- A new plant for manufacturing tubes and flaps at Ranjangaon near Pune was
commissioned during the year.
- The Company entered into an agreement with continental AG, Germany, for
setting up a passenger car radial tyre factory with and initial production
capacity of 4.7 million car radial tyres per annum and with a capital outlay
of Rs 400 crores at Pune. This is a 50:50 joint venture between Apollo and
Continental.
- During January, the Company issued 69,69,838-14% secured non-convertible
debentures of Rs 150 each with one detachable warrant, in the ratio 1 NCD :
4 equity shares held.
- Each debenture shall be redeemed in three equal instalments of Rs 50 each
at the end of 6th, 7th & 8th year respectively from the date of allotment of
debentures.
- The BIFR vide its order dated April 17, approved the rehabilitation
scheme for revival of Premier Tyres Ltd. (PTL) envisaging take over of PTL.
The scheme involves operation of Premier plant by Apollo for production of
Apollo brands under a lease arrangement.
The Company had become a
subsidiary of the Company.

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- 10,25,667 No. of Equity shares issued against detachable warrants

attached with 14% - NCDs on 31.3.1996. 5,52,492 Rights Equity shares of Rs
10 each (Premium Rs 90 per share) allotted on 30.3.96 (Propn. 1:1).
- The Company emerged as the largest exporter of tyres registering a
phenomenal 102 per cent increase in exports.
1996

- 4,17,389 shares issued on conversion of warrants.

1997
- The Company issued 12.5% NCD aggregating Rs 20 crores to IDBI on private
placement for a period of 18 months.
- 1,65,206
warrants.

No.

of

equity

shares

issued

on

conversion

of

detachable

- Apollo Tyres Limited has set up shop in the city opening its Apollo Tyre
World (ATW) through Vora Tyres.
- Apollo has been setting up ATW's all over the country equipped with
state-of-the-art testing equipment.
- ATL signed a letter of intent with the global major Continental AG for a
50:50 joint venture for setting up a 4.7 million passenger car radial
facility.
- The Apollo Tyres management has declared a lock-out at its Perambra unit,
on Dec 6, lightning strike by its workers in the electrical, electronics,
winding shop and instrumentation sections.
- The week-long lock-out declared by the Apollo Tyres management at its
factory at Perambra in Kerala has been lifted and the factory resumed
operations from December 13.
- ATL is the first Indian company to have an ISO 9001 accreditation for the
entire product range.
- ATL has emerged as the fastest growing tyre company in India (turnover up
six-fold in the last five years) and the seventh fastest in the world.
- The strike, by the electrical department workmen, began from November 30,
demanding withdrawal of suspension of an employee.
1998
- Apollo Tyres has announced a voluntary retirement scheme (VRS) for the
workers at its Perambra unit in Kerala with a view to
optimise manpower utilisation and costs.
- The Perambara unit in Kerala was one of the largest units with a capacity
of 115 tonnes per day and its closure between April 10 to July 18 resulted
in a massive production loss.
- The company proposes to step up its radial capacity at Vadodara plant to
57,000 tyres per month, in addition to the current output of 8,500 radials
at Kochi.

St. Marys College of Engineering & Technology

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- Apollo Tyres has desubsidiarised two wholly-owned companies - Apollo

Finance and Apollo International - by diluting its holding in both to below
51 per cent.
- For Apollo Tyres, its Perambara tyre plant has not been doing too well
and acting as a drag on the company's resources. This is mainly due to the
continued labour unrest and lock-outs leading to heavy production loss at
that unit.
- Apollo International recently set up a subsidiary
Worldwide, for providing IT solutions to corporate clients.

firm,

Infonet

- The company is setting up a greenfield project at Ropar in Punjab to

manufacture 100 tonnes a year of agriculture and off-the-road tyres, that
is, mainly tyres for tractors, earthmovers, etc.
- The company has a total installed capacity of 1.5 lakh truck tyres per
month. The two plants in Kerala have a capacity of 70,000 tyres per month,
the Baroda plant has a installed capacity of 55,000 tyres per month and the
conversion arrangement with TCIL contributes another 25,000 tyres per month.
- Premier Tyres Ltd. became a subsidiary of the company.
- 4,190 No. of equity shares issued on conversion of warrants and another
30,10,000 No. of equity shares issued on conversion of part-A of convertible
debentures of Rs 92 each.
1999
- Apollo Tyres Limited (ATL) has signed an agreement with national
Securities Depository Limited (NSDL) for holding and trading of shares in
demant form.
- Apollo Tyres Ltd. has informed the Mumbai Stock Exchange (BSE) that the
management has declared a lock-out at the company's Penrambra unit in Kochi
with effect from 11th July.
- No new technical collaboration agreement would be signed between ATL and
Continental to include technology transfer for truck radials as the existing
agreement.
2000
- The Company is planning to set up a Rs 300-crore radial tyre
manufacturing unit either in Tamil Nadu or Andhra Pradesh with a capacity of
100 tonnes per day for radial tyres for trucks and off-the-road vehicles.
- Crisil has reaffirmed the `AA-' rating assigned to the Rs. 104.45-crore
non-convertible debenture (NCD) programme of Apollo Tyres Ltd.
- The Company proposes to pump in Rs. 225 crore as equity in its new
wholly-owned subsidiary which will set up a greefield manufacturing unit.
- The Company is setting up a Rs 450-crore plant to manufacture cross/ply
radial tyres.

St. Marys College of Engineering & Technology

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- The Company's plant at Limba was closed for 19 days from 1st May, to 19th
May, on account of an illegal strike by workers.
- In a bid to attract the Net-savvy customers, Apollo Tyres has tied up
with indiatimes.com to accentuate brand association with safe and pleasant
journeys.
- The Kalamassery unit of Apollo Tyres has won
Competition for Young Managers for 2000 organised
Management Association in New Delhi.

the 26th National

by the All India

- Credit rating agency Crisil has reaffirmed the high safety rating of
`AA-' to the Rs 104.45 crore non-convertible debenture programme of Apollo
Tyres.
2001
- Apollo Tyres Ltd. has zeroed in on Tamil Nadu for setting up its Rs 450crore Greenfield truck radial tyre manufacturing plant.
- Apollo Tyres Ltd has posted a 48.48 per cent decline in net profit at Rs
3.22 crore for the quarter ended September 30, 2001.
2002
- Apollo Tyres Ltd has informed that the appointment of Shri Raunaq Singh
as Managing Director. He will however continue to be a Director and NonExecutive Chairman of the Board of Directors, liable to retire by rotation.
-Apollo Tyres Ltd has informed that the Board of Directors appointed Mr
Onkar S Kanwar as the Chairman of the Board of Directors. The Board also
appointed Mr D Sengupta former Chairman of GIC as an Additional Director of
the Company.
-Apollo Tyres
been appointed
caused by the
Chairman of the
2003

Ltd has informed the Exchange that Mr. Raaja R S Kanwar has
as Director, liable to retire by rotation in the vacancy
retirementof Mr. Raunaq Singh, Non-Executive Director and
Board.

-Technical & Financial Collaboration with Michelin Group.

2004
-Compagnie Financiere Michelin, Switzerland, acquire 57,12,500 shares
amounting to 14.90% of the total paid up capital of Apollo Tyres Ltd.
-Michelin Apollo Tyres Pvt Ltd (MATL), a 51:49 joint venture between
Michelin Group and Apollo Tyres Ltd (ATL), has announced the launch of a
range of truck and bus radials for the Indian market.
-Apollo Tyres Ltd on August 9, 2004, announced the opening of Apollo
Pragati Kendras , exclusive outlets for selling the entire range of its farm
tyres to the agricultural community
-Apollo Tyres introduces new range of tubeless car radials on October
27, 2004.

St. Marys College of Engineering & Technology

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2005
- The first tyre-manufacturing unit of the Apollo Tyres Ltd (ATL) at
Perambra in Thrissur district celebrates its 30 years of successful
operations on 17th April 2005.
2006 -Apollo Tyres rolls out DuraTreads

List Of Directors Sr. No. Director's Name Designation

1. Onkar S Kanwar Chairman and Managing director
2. M J Hankinson Director
3. T Balakrishnan Director
4. Raja Kanwar Director
5. K Jose Cyriac Director
6. Robert Steinmetz Director
7. Shardul S Shroff Directors
8. U S Oberoi Whole Time Director
9. Nimesh N Kampani Director
10. S Narayan Director
11. K Jacob Thomas Director
12. Neeraj Kanwar Joint Managing Director
13. Sunam Sarkar Whole Time Dir
13. ector

St. Marys College of Engineering & Technology

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Onkar S Kanwar
Chairman & Managing Director

As a corporate Apollo Tyres believes in investing in initiatives which have the ability
to have a direct impact on the lives of its stakeholders, while strengthening the
company's existence as a business entity. This ensures that all activities are
sustainable, measurable and form a core part of its entire business plan. The largest
area of work involves awareness and prevention of HIV-AIDS. Three key groups are
addressed directly through this programme's on-ground activities

The trucking community is a crucial stakeholder in the tyre business and is known to
be vulnerable to sexual infections and therefore the AIDS virus, due to their nomadic
and irregular lifestyle on the road. Besides truck drivers, the community also
includes cleaners, mechanics, loaders, migrant workers, small business owners and
those living at some of India's largest transportation hubs and catering to the
trucking profession. Apollo has established targeted intervention centres called
Apollo Tyres Health Care Clinics outside the capital city of New Delhi, Kanpur in
Uttar Pradesh, Coimbatore in Tamil Nadu, Vashi outside Mumbai city and Nagpur in
Maharashtra, Udaipur and Jaipur in Rajasthan. Others large trucking centres are
being considered for future Clinic sites.
These Clinics are run by qualified doctors, counsellors, pharmacists and outreach
workers who focus on:
Diagnosis and treatment of sexually transmitted diseases (STD)
Behavioural change communication
Condom promotion

St. Marys College of Engineering & Technology

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A complete workplace programme caters to awareness creation among all white and
blue-collar employees. At all locations, Master Trainers have been trained to facilitate
continuous knowledge upgradation and implementation of all on-ground activities.

This is the key vehicle for taking the AIDS awareness and prevention programme to
a larger mass of the active working population. Apollo Tyres works with its business
partners to assist them in undertaking workplace programmes for their employees.

Avert Society
International Finance Corporation
International Labour Organisation
Population Services International
Rajasthan State AIDS Control Society

As the chief architect of the company's vision, Onkar S Kanwar plays a pivotal role in the
company's operations and articulation of its business philosophy. Under his leadership in
the 1980s and 90s, Apollo became a professionally-run and competitive Indian tyre
manufacturer. Innovation, quality and exclusivity are his guiding principals, which have
helped the company achieve pioneering initiatives.
Onkar Kanwar is a former member of the Government of India's National Manufacturing
Competitiveness Council and the Kerala Development and Poverty Alleviation Advisory
Council. He is a Past President of the Federation of Indian Chambers of Commerce &
Industry (FICCI), International Chamber of Commerce (ICC), Automotive Tyre
Manufacturers' Association (ATMA), a former Director, Export Credit Guarantee
Corporation of India and of the Kerala State Industrial Corporation.
A science and administration graduate from the University of California, he is a widely
travelled individual and a keen student of modern management practices and their
successful application in business. He devotes a large part of his time to reading.

St. Marys College of Engineering & Technology

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Neeraj Kanwar began his career with Apollo Tyres Ltd in 1995. He joined the company
as Manager, Product & Strategic Planning, where he was instrumental in creating for the
first time a bridge between the two key functions of production and marketing. In 1998,
Neeraj became Director and Chief, Manufacturing & Strategic Planning. While in this
position, he brought in overarching changes in IR management, upgradation of
technology, benchmarking on product and efficiency parameters and the extensive use
of information technology. In July 2002 he took over as the Chief Operating Officer. As
COO, Neeraj Kanwar has been instrumental in bringing about key changes in HR and IT
and in increasing the competitiveness of Apollo products across the board. He was
appointed Joint Managing Director in 2006 and elevated to Vice Chairman in 2008.
A hands-on manager, Neeraj Kanwar graduated from Lehigh University, USA, with a
Bachelor of Science in Industrial Engineering and a specialisation in Management
Systems. An avid sports person, he enjoys playing tennis, swimming & travelling in his
leisure time.

St. Marys College of Engineering & Technology

10

Yearly Results

------------------- in Rs. Cr. ------------------Mar '03

Mar '04

Mar '05

Mar '06

Mar '07

Income
Sales Turnover

2,025.62 2,314.31 2,662.53 3,008.30 3,781.01

Excise Duty

417.29

Net Sales

1,608.33 1,910.75 2,241.52 2,619.76 3,290.94

Other Income

20.40

12.20

28.11

10.49

17.43

Stock Adjustments

27.09

37.91

-24.72

88.74

39.41

Total Income

1,655.82 1,960.86 2,244.91 2,718.99 3,347.78

403.56

421.01

388.54

490.07

Expenditure
Raw Materials

1,024.59 1,301.68 1,542.50 1,954.67 2,375.82

Power & Fuel Cost

85.82

99.34

114.57

121.82

132.68

Employee Cost

109.29

132.91

141.74

163.25

199.22

32.84

8.09

7.34

12.77

181.50

208.20

194.92

243.86

Miscellaneous Expenses 21.83

25.97

27.43

31.26

34.59

Preoperative
Capitalised

0.00

0.00

0.00

0.00

Other
Manufacturing
23.57
Expenses
Selling
and
Admin
148.48
Expenses

Total Expenses

Exp

0.00

1,413.58 1,774.24 2,042.53 2,473.26 2,998.94

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

12 mths

12 mths

12 mths

12 mths

12 mths

Operating Profit

221.84

174.42

174.27

235.24

331.41

PBDIT

242.24

186.62

202.38

245.73

348.84

Interest

42.35

37.67

60.68

66.57

89.23

PBDT

199.89

148.95

141.70

179.16

259.61

Depreciation

33.36

43.72

56.79

72.79

74.23

St. Marys College of Engineering & Technology

11

Other Written Off

0.00

0.00

0.00

0.00

0.00

Profit Before Tax

166.53

105.23

84.91

106.37

185.38

Extra-ordinary items

0.00

1.87

-32.85

0.00

0.00

PBT
(Post
Items)

166.53

107.10

52.06

106.37

185.38

Tax

46.51

34.81

17.28

28.20

72.00

Reported Net Profit

120.02

70.42

67.63

78.17

113.42

Total Value Addition

388.99

472.56

500.03

518.59

623.11

Preference Dividend

0.00

0.00

0.00

0.00

0.00

Equity Dividend

16.34

17.25

17.25

17.25

20.88

2.21

2.42

2.42

2.93

383.38

383.38

383.38

464.02

Earning Per Share (Rs) 33.05

18.37

17.64

20.39

24.44

Equity Dividend (%)

45.00

45.00

45.00

45.00

45.00

Book Value (Rs)

114.46

148.43

149.53

164.51

207.74

Extra-ord

Corporate Dividend Tax 2.09

Per
share
(annualised)
Shares
in
(lakhs)

Yearly Results

data
issue

363.15

-------------------------------------

in

Rs.

Mar '04

Mar '07

Mar '08

Mar '05

Mar '06

Sales Turnover

1,910.75 2,225.49 2,625.52 3,292.33 3,693.93

Other Income

6.03

Total Income

1,916.78 2,245.30 2,626.70 3,295.30 3,703.15

Total Expenses

1,749.20 2,060.66 2,402.78 2,983.01 3,229.85

Operating Profit

161.55

19.81

164.83

1.18

222.74

2.97

309.32

St. Marys College of Engineering & Technology

12

9.22

464.08

Cr.

Profit On Sale Of Assets -Profit

On
Sale
Of
-Investments
Gain/Loss
On
Foreign
-Exchange
VRS Adjustment

--

Other
Extraordinary
-Income/Expenses
Total
Extraordinary
-Income/Expenses
Tax
On
Extraordinary
-Items
Net
Extra
Ordinary
-Income/Expenses

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

5.80

--

--

--

--

--

--

--

--

--

--

Gross Profit

167.58

184.64

223.92

312.29

473.30

Interest

18.63

42.94

50.56

52.65

52.04

PBDT

148.95

141.70

179.16

259.65

421.25

Depreciation

43.72

56.79

72.79

74.23

87.81

Depreciation
On
-Revaluation Of Assets

--

--

--

--

PBT

105.23

84.91

106.37

185.42

333.44

Tax

34.81

17.28

28.20

72.00

114.14

Net Profit

70.42

67.63

78.17

113.42

219.30

--

--

--

--

--

for
Written --

--

--

--

--

Dividend

--

--

--

--

--

Dividend Tax

--

--

--

--

--

Dividend (%)

--

--

--

--

--

Earnings Per Share

18.37

17.64

20.39

24.44

4.49

Book Value

--

--

--

--

--

Equity

38.34

38.34

38.34

46.41

48.85

Reserves

530.70

534.94

592.37

917.56

1,176.84

Face Value

10.00

10.00

10.00

10.00

1.00

Prior
Income/Expenses
Depreciation
Previous Years
Back/ Provided

Years

St. Marys College of Engineering & Technology

13

BSE: 500877

NSE: APOLLOTYRE

ISIN: INE438A01022

Industry : Tyres
in

Rs.

Mar '03 Mar '04 Mar '05

12 mths 12 mths 12 mths

Mar '06
12 mths

Mar '07
12 mths

Total Share Capital

36.32

38.34

38.34

38.34

46.41

Equity Share Capital

36.32

38.34

38.34

38.34

46.41

Share Application Money

0.00

0.00

0.00

0.00

11.72

Preference Share Capital 0.00

0.00

0.00

0.00

0.00

Reserves

379.34

530.70 534.94

592.37

917.56

Revaluation Reserves

3.78

2.89

3.31

3.16

Net worth

419.44

571.93 576.74

634.02

978.85

Secured Loans

216.14

376.41 348.75

381.00

473.76

Balance Sheet

-------------------------------------

Sources Of Funds

3.46

St. Marys College of Engineering & Technology

14

Cr.

Unsecured Loans

68.62

45.00

195.06

369.00

144.94

Total Debt

284.76

421.41 543.81

750.00

618.70

Total Liabilities

704.20

993.34 1,120.55 1,384.02 1,597.55

Mar
'04
12
12 mths
mths
Mar '03

Mar '05

Mar '06

Mar '07

12 mths

12 mths

12 mths

Application Of Funds
Gross Block

720.03

975.87 1,148.43 1,310.61 1,492.51

287.67

327.79 398.30

469.94

541.66

432.36

648.08 750.13

840.67

950.85

Capital Work in Progress 55.88

65.84

84.33

77.93

80.46

Investments

25.54

64.21

54.48

0.53

258.11

Inventories

216.48

262.66 330.12

419.41

451.95

Sundry Debtors

74.37

87.78

156.52

175.14

203.06

Cash and Bank Balance

85.54

91.97

94.49

95.91

131.70

Total Current Assets

376.39

442.41 581.13

690.46

786.71

Loans and Advances

122.92

328.69 307.98

378.67

451.75

Fixed Deposits

12.07

14.38

135.45

40.30

511.38

785.48 905.05

1,204.58 1,278.76

Deffered Credit

0.00

0.00

0.00

0.00

Current Liabilities

306.33

373.20 485.75

529.42

681.64

Provisions

20.78

198.72 188.07

210.53

289.12

Total CL & Provisions

327.11

571.92 673.82

739.95

970.76

Net Current Assets

184.27

213.56 231.23

464.63

308.00

Miscellaneous Expenses

6.15

1.65

0.26

0.12

Total Assets

704.20

993.34 1,120.55 1,384.02 1,597.54

Contingent Liabilities

185.36

124.46 113.14

106.63

133.93

Book Value (Rs)

114.46

148.43 149.53

164.51

207.74

Less:
Depreciation

Accum.

Net Block

Total
CA,
Advances

Loans

&

15.94

0.00

0.38

St. Marys College of Engineering & Technology

15

FINACIAL ANALYSIS
CURRENT

RATIO=CURRENT ASSETS/CURRENT LIABILITIES

YEAR

CURRENT RATIO

2004
2005
2006
2007

16.57/10.84=1.52
11.42/18.17=0.62
29.77/31.86=0.93
31.93/38.24=0.83

INTERPRETATION: The current ratio in the year 2004 is 1.52 and decreased
to 0.83 in 2007.overall current ratio is less than 2. It indicates that
the firm is not having adequate liquidity.
CAPITAL STRUCTURE RATIOS
DEBT EQUITY RATIO=LONG LIABILITIES/SHARE HOLDER FUNDS
YEAR

DEBT RATIO

2004
2005
2006

0.00/16.97=0.00
3.79/22.63=0.16
0.05/36.51=0.00

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2007

0.04/113.72=0.00

INTERPRETATION: The debt equity ratio is 0.00 in the year 2004.In 2005
it has been increased 0.16
respectively in 2007 it has decreased to
0.00.
PROPRIETORY RATIO=NETWORTH/TOTAL ASSETS
YEAR

PROPRIETORY RATIO

2004
2005
2006
2007

16.97/16.98=0.99
22.63/26.42=0.84
36.51/36.56=0.99
113.72/113.75=1.00

INTERPRETATION: The Proprietary ratio is 0.99 in 2004 .But it come down

to 0.84 in 2005.Then it increase to 1.00in 2007.It means the assets
financed by owner funds has increased.

FIXED ASSET RATIO=FIXED ASSETS/CAPITAL EMLOYED

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YEAR
2004
2005
2006
2007

FIXED ASSET RATIO

3.41/16.97=0.20
4.42/26.42=0.16
2.22/36.56=0.06
9.06/113.76=0.08

INTERPRETATION: The fixed asset ratio of the company is less than 1. It

indicates that it is good.
INTEREST COVERAGE RATIO= PBIT/FIXED INTREST CHANGE
YEAR

I.C.R

2004
2005
2006
2007

6.61/0.07=94.42
11.04/0.14=78.85
24.36/0.19=128.21
17.62/0.52=33.88

INTERPRETATION: The Interest coverage ratio is 94.42 in 2004 .But it

come down to 33.88 in 2007. Then it indicates that there are sufficient
profits to pay the interest charges.

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TURNOVER RATIOS:
INVENTORY TURN OVER RATIO=COST OF GOODS SOLD/AVG STOCK
YEAR

I.T.O.R

2004
2005
2006
2007

13.10/0.27=48.51
22.64/1.02=36.51
46.49/1.15=61.98
55.43/0.43=128.9

INTERPRETATION: The inventory turnover ratio is 48.51 in 2004 but it

decreased 36.51 in 2005and in 2006 and 2007 it increases to 61.98 and
128.90 which indicates that stock has turned over into sales is
increased.
DEBTORS TURN OVER RATIO =NETSALES/AVERAGE DEBTORS
YEAR

D.B.T.R

2004
2005
2006
2007

13.10/1.62=8.01
22.62/2.80=8.08
46.49/9.36=4.96
55.43/17.09=3.24

St. Marys College of Engineering & Technology

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INTERPRETATION: The debtors turnover ratio is 8.01 in 2004 it has been

decreased to 3.24 in 2007 which is also below than ideal. An ideal ratio
should be 10-12.
c)

WORKINGCAPITAL TURN OVER RATIO =NETSALES/WORKINGCAPITAL

YEAR

W.C.T.R

2004
2005
2006
2007

13.10/5.73=2.28
22.64/-16.75=-3.35
46.49/-2.09=-22.24
55.43/-8.11=-6.83

INTERPRETATION: The working capital turnover ratio is 2.28 in 2004.And

it come down to -22.24 in 2006.it indicates the utilization of firm
funds is come down .but it increase to -6.83 in 2007 it indicates the
utilization of firm funds is increased.

d)

FIXED ASSETS TURN OVER RATIO=NETSALES/FIXED ASSETS

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YEAR
2004
2005
2006
2007

F.A.T.R
13.10/3.41=3.84
22.64/4.42=5.12
46.49/2.22=20.94
55.43/9.06=6.11

INTERPRETATION: The fixed assets turnover ratio is 3.84 in 2004.But it

increases to 20.94 in 2006. It indicates that firm is using its fixed
assets properly.
PROFITABILITY RATIOS:

OPERATING RATIO=OPERATING

COST/NETSALES

YEAR

N.P.R

2004
2005
2006
2007

7.57/13.10=0.57
12.61/22.64=0.55
23.17/46.49=0.49
43.11/55.43=0.77

St. Marys College of Engineering & Technology

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INTERPRETATION: The operating ratio is 0.57in 2004.And it has increased

to0.77 in 2007.It indicates that operating efficiency of the business is
come down .But it has increased to 0.77 it means that is satisfactory.
OPERATING PROFIT RATIO=1-OPERATING RATIO
YEAR

O.P.R

2004
2005
2006
2007

1-0.57=0.43
1-0.55=0.45
1-0.49=0.51
1-0.77=0.23

INTERPRETATION:
The operating profit ratio is 0.42 in 2004. But it
increases to 0.50 in 2006.Again it decreased to 0.22 in2007 it indicates
operating profit is increased.

NET PROFIT

RATIO=P.A.T/NETSALESx100

YEAR

N.P.R

2004

4.06/13.10x100=30.99

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2005
2006
2007

6.60/22.64x100=29.15
15.45/46.49x100=33.23
9.34/55.43x100=16.85

INTERPRETATION: The net profit ratio is 30.99 in 2004.And it decreased

to 29.15 and 16.85 in 2005 and 2007 respectively. It indicates that the
Profitability is the business is decreased.
OVERALL PROFITABILITY RATIO:
RETURN ON CAPITAL EMPLOYED=P.B.I.T/CAPITAL EMPLOYED
YEAR

R.O.C.E

2004
2005
2006
2007

6.61/16.97=0.39
11.04/26.42=0.41
24.36/36.56=0.66
17.62/113.76=0.15

INTERPRETATION: The return on capital employed is 0.39 in 2004. And it

increased to 0.66 in2006. But it decreased to 0.15 in 2007. It indicates
that the return to shareholders is decreased.

St. Marys College of Engineering & Technology

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RETURN ON NET WORTH RATIO =P.A.T/NET WORTH

YEAR

R.O.N.W

2004
2005
2006
2007

4.06/16.97=0.23
6.60/22.63=0.29
15.45/36.51=0.42
9.34/113.72=0.08

INTERPRETATION: The Return on net worth is 0.23 in 2004 and it come down
to 0.08 in 2007.It indicates that the business was risky in 2007.
RETURN ON ASSETS RATIO = P.A.T/TOTAL ASSETS
YEAR

R.O.A

2004
2005
2006
2007

4.06/16.98=0.23
6.60/26.42=0.25
15.45/36.56=0.42
9.34/113.72=0.08

St. Marys College of Engineering & Technology

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INTERPRETATION: The Return on assets ratio is 0.23 in 2004.It came down

to 0.08 in 2007.It means that return on assets is come down.Which is not
satisfactory.

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Ratios

2004

2005

2006

2007

C.R
D.E.R
P.R
F.A.R
I.C.R
I.T.R
D.T.R

1.52
0.00
0.99
0.20
94.42
48.51
8.01

0.62
0.16
0.84
0.16
78.85
36.51
8.08

0.93
0.00
0.99
0.06
128.21
61.98
4.96

0.83
0.00
1.00
0.08
33.88
128.90
3.24

W.C.T.R
F.A.T.R
N.P.R
O.R
O.P.R
R.C.E.R
R.O.N.W
R.O.A.R
E.P.S
BOOK VALUE

2.28
3.84
30.99
0.57
0.42
0.39
0.23
0.23
11.58
48.49

-3.35
5.12
29.15
0.55
0.42
0.41
0.29
0.25
18.82
64.66

-22.24
20.94
33.23
0.49
0.50
0.66
0.42
0.42
8.63
20.40

-6.83
6.11
16.85
0.77
0.22
0.15
0.08
0.08
3.83
46.86

FINDINGS AND CONCLUSION

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26

The current ratio of the company is bellow 2.Which indicates it is less

than ideal. So the company is under capitalization .The debt equity
ratio of the company is also below 2 .Which means that the company is
use more equity than debt. This means
Larger safety margin for creditors. The proprietary ratio is also not
impressive.
The interest coverage ratio of the company in 2004 is 8.89 and it come
down to 4.42 and 4.44 in years 2005 and 2006.Which indicates that the
profits has comedown .But in 2007 the ratio gone up to 5.29 which
implies that are sufficient profits to pay the interest charges.
The fixed asset ratio of the company is below five, which indicates the
form is not using fixed asset effectively the working capital ratio and
invented turnover ratio of the form is good.
The debtors turnover ratio of the company is more than ten, which
implies prompt payment by debtors.
The net profit ratio of company is 7.72 in 2004 and it come down to 2.92
in 2007 it indicates that the capacity of form which stand adverse
economic condition as become lower.
The ROCE of the company is too low which indicates that the share holder
funds are not efficiently managing.
The ROA and RONW are also not very good.

St. Marys College of Engineering & Technology

27