GLOSSARY

The data is compiled from data available in Annual Reports, The Stock Exchange and from various newspapers and magazines. No attempt is made to check the validity of the various sources but certain adjustments, for ease of cross-comparison, have been made as explained below.

ADJUSTED DAILY SHARE PRICE CHART

The graph shows the daily share price of the company and the 100 day moving average graph from August 2006 (or the day the company got listed) to August 2009.

SHAREHOLDING DATA COMPANY NAME

A + indicates that the company is one of the 30 companies in the BSE-30 Index (Sensex). A $ indicates that the company is one of the 50 companies that comprise the NSE Index, Nifty. For e.g. Tata Steel Ltd. + $ indicates that Tata Steel Ltd. is a part of the BSE-30 Index and the NSE-50 Index. The sector in which the company operates and the business group that the company belongs to is also given below the companys name. For e.g., Tata Steel is in the Steel sector and belongs to the Tata group of companies. The registered office address, telephone and fax numbers and names of the transfer agents are also given. Gives the percentage of share held by Indian promoters, foreign collaborators, Indian institutions, foreign institutional investors and the public/free float. Also gives the total number of shareholders. We have combined GDR and FII investments for the purpose of classifying shareholding.

FX TRANSACTIONS (in millions)

Gives the foreign exchange position in terms of exports (fob), imports (cif), fx inflow, fx outflow for the latest reported year.

INTERIM RESULTS (in millions)

Gives the interim results for the past four quarters. Results are displayed as reported by the company.

HEADERS
The year in which the company was incorporated (Yr. of Inc.), the BSE code number (B. Code) and the Bloomberg code (BL. Code) are shown. F.V. indicates the face value of the share. Based on the share price of the company on August 31, 2009 and using data for the latest accounting year, the price to earnings ratio (P/E), price to cash flow ratio (P/CF), and dividend yield (Yield), have been calculated. For example, the price of Tata Steel as on August 31, 2009 was Rs 424.3. This share price is divided by the latest reported earnings per share (March 2009), to give a P/E ratio of 6.3. Similarly, the share price is divided by the latest reported cash flow per share (March 2009) to give a P/CF ratio of 3.4. The latest dividend declared is divided by the share price to get a dividend yield of 3.8%

EQUITY SHARE DATA

HIGH
This is the highest the share price has reached in a particular accounting or calendar year (adjusted for rights, bonuses, etc. without any retrospective effect).

LOW
This is the lowest the share price has reached in a particular accounting or calendar year (adjusted for rights, bonuses, etc. without any retrospective effect).

SALES PER SHARE (in rupees)

The sales of the company in a period or year is divided by the number of equity shares outstanding at the end of that year. All data given on a per share basis allows investors to compare the performance of companies irrespective of the size of the companies.

% ONE MONTH AND TWELVE MONTHS CHANGE

Using the share price of the company on August 31, 2009 the percentage change over previous one month and twelve months have been calculated.

EARNING PER SHARE (in rupees)

This is calculated by dividing the net profit after tax (includes extraordinary items) of the company (less any dividends on preference shares that the company may have paid) for a given year or period by the number of equity shares outstanding at the end of the year.

MARKET CAPITALISATION (in millions)

Market Capitalisation (Mkt. Cap) is obtained by multiplying the shares outstanding at the end of latest reporting period, by the share price as on August 31, 2009. For Tata Steel, market cap works out to be Rs. 310,036 million.

CASH FLOW PER SHARE (in rupees)

Cash Flow is obtained by adding the net profit after tax (adjusted for preference dividend) to non-cash charges such as depreciation. The cash flow per share is this Cash Flow figure divided by the number of shares outstanding at the end of the year.

Vol. - APPROXIMATE DAILY TRADING VOLUME

The approximate daily trading volume expressed in 000 numbers (rounded off to the nearest tens e.g. 10, 20, 30, 40, 50) is merely an indicative figure. For trading volumes below and equal to five, they have been rounded off to 5. Trading volumes may differ dramatically from day to day.

DIVIDENDS PER SHARE (in rupees)

This is the amount of dividend declared by the company (usually expressed as a percentage of its face value) calculated on a rupees-per-share basis.

CHAIRMAN
The name of the chairman is obtained from the latest annual reports. In addition, the name of the company secretary and the auditors are also given.

DIVIDEND YIELD (in percentage)

The amount of dividend received per share divided by the average

GLOSSARY
price (average of high and low price) of the share in that year/ period gives the dividend yield - the return an investor receives by way of dividends from his investment in the share.

NO. OF EMPLOYEES (in 000s)

The total number of employees has been obtained from company sources and at times from the annual reports. It is an approximate figure.

BOOK VALUE PER SHARE (in rupees)

The net worth or the shareholders equity of the company is divided by the number of equity shares outstanding to arrive at the book value per share.

TOTAL WAGES & SALARY (in Rs millions)

Includes salaries and wages paid to the employees, gratuity, welfare expenses, companys contribution to provident fund, etc. It does not include commission paid to the directors and V.R.S. related expenses (V.R.S. expense, if any, has been treated as extraordinary item).

SHARE OUTSTANDING (in millions)

This represents the number of equity shares that have been issued by the company as reported in the annual report.

SALES/EMPLOYEE (in Rs 000s) BONUS/RIGHTS/CONVERSIONS

This signifies change in equity share capital due to:A B BB BC CR DC DM ESOP FV GDR GDS OI PA PI PP PSC R WC : : : : : : : : : : : : : : : : : Shares allotted on amalgamation/merger Bonus Issue Buy Back Bond Conversion Capital Reduction Debenture Conversion Demerger Employee Stock Option Plan Face Value Conversion (FV5 indicates change of face value to Rs 5 per share) Global Depository Receipts Global Depository Shares Other Issue Preferential Allotment Public Issue Private Placement Preference Share Conversion Rights Issue Warrant Conversion The sales of the company in a year or period is divided by the number of employees. It is a key figure showing average sales per employee.

WAGES/EMPLOYEE (in Rs 000s)

Total wages/salary is divided by the number of employees. It is a key figure because it shows labour cost per employee.

NET PROFIT/EMPLOYEE (in Rs 000s)

This is calculated by dividing the net profit after tax of the company for a given year, by the number of employees. This figure shows the average net profit earned per employee.

INCOME DATA
NET SALES (in rupees millions)
Is the net sales of the company for a particular period from its regular activities. Income from other non-core business is shown as other income. Net sales is net of excise duty and after deducting Returns, Discounts, and Allowances.

PRICE TO SALES RATIO

The average price of the share in a particular year/period, divided by sales per share gives the price to sales ratio.

OTHER INCOME (in rupees millions)

Is income earned by the company from activities which are not its main business. Interest income and income from sale of assets are typical examples of Other Income. Export incentives are added to other income.

P/E RATIO
The average price of the share in a particular year/period, divided by the earnings per share gives the price to earnings ratio (P/E or PER)

GROSS PROFIT (in rupees millions)

Is the profit earned after taking into account the operating expenses such as raw material costs and administrative expenses but before interest, depreciation, and taxes. Gross profit excludes other income.

PRICE TO CASH FLOW RATIO

The average price of the share in a particular year/period, divided by the cash flow per share gives the price to cash flow ratio (P/ CF).

DEPRECIATION (in rupees millions)

It is the amount of money put aside by the company to take into account the wear and tear of its plant, machinery, furniture, etc. The depreciation figure shown has been arrived at after deducting any capitalised expenses that may have been included in depreciation.

PRICE TO BOOK VALUE RATIO

The average price of the share in a particular year/period divided by the book value per share gives the price to book value ratio.

DIVIDEND PAYOUT (percentage)

The dividends per share divided by the earnings per share gives the dividend payout percentage - the amount of earnings that a company pays out as dividends to its shareholders.

INTEREST (in rupees millions)

Is the interest charges paid by the company for the loans it may have taken from banks, suppliers, depositors or shareholders. Bank charges, if any, have been excluded from the interest. Interest income received by the company is not netted out against interest expenses. Interest income is shown as part of Other Income.

GLOSSARY
PROFIT BEFORE TAX (in rupees millions)
The PBT is the profit the company has earned after taking into account all expenses (such as cost of raw materials, interest, depreciation).

NET FIXED ASSETS (in rupees millions)

Is the amount of fixed assets as plant and machinery owned by the company less the depreciation expenses that have been charged to the profit and loss account over the years. Capital work-in-progress is also included in net fixed assets.

EXTRA-ORDINARY ITEMS (in rupees millions)

Is the income or expense that is non-recurring in nature.

SHARE CAPITAL (in rupees millions) TAX (in rupees millions)

Is the tax paid by the company on its profits. Tax adjustments for earlier years are also reflected in this figure. Is the issued equity share capital of the company. It does not include preference share capital. In India few companies use preference share capital.

PROFIT AFTER TAX (in rupees millions)

Is profit before tax less tax paid by the company and adjusted for extra-ordinary items, minority interest and prior period items.

FREE RESERVES (in rupees millions)

Free reserves are those reserves of the company, which are available for distribution as dividend or bonus. Some of the important components of Free reserves are share premium, general reserve, capital redemption reserve, investment allowance utilisation reserve, profit and loss, dividend equalisation, export allowance, export profit, and export rebate reserves.

GROSS PROFIT MARGIN (percentage)

Is the Gross Profit of the company divided by net sales.

EFFECTIVE TAX RATE (percentage)

Is the tax paid by the company divided by the pre-tax profits.

NET WORTH (in rupees millions)

Is that part of the company which belongs to the shareholders. Net worth includes equity share capital and all reserves (including revaluation reserve) less miscellaneous expenses and losses not written off. Net worth does not include preference share capital. Net worth is also known as shareholders equity or shareholders funds.

NET PROFIT MARGIN (percentage)

Is the profit after tax divided by net sales.

BALANCE SHEET DATA

CURRENT ASSETS (in rupees millions)
Current assets are the assets that a company holds for a period of less than one year to meet its working capital requirements and they consist of cash and bank balances, investments in marketable securities, inventories, accounts receivable or sundry debtors, loans and advances.

LONG TERM DEBT (in rupees millions)

Is the amount of money that the company has borrowed and which it has to repay after a period of more than one year. Many companies do not disclose this data in their Annual Reports and hence it is an estimation.

CURRENT LIABILITIES (in rupees millions)

Current liabilities are the liabilities which have to be paid within a period of one year. It consists of creditors, bills payable, provisions for payment of dividends, interest and taxes.

TOTAL ASSETS (in rupees millions)

Is arrived by adding current assets, net fixed assets and other assets (such as investments, goodwill etc.). Deferred tax asset, if any, is ignored for the purpose of calculation.

NET WORKING CAP TO SALES (a percentage)

Net working capital (i.e. current assets less current liabilities) divided by sales gives the net working capital to sales figure. It is a measure of the amount of working capital required by the company to finance sales.

INTEREST COVERAGE RATIO

It is the profit before tax plus interest divided by interest. This ratio shows how many times interest charges are covered by profits before tax and interest. The larger the coverage, the greater is the ability of the company to meet fixed interest charges.

CURRENT RATIO
Current assets divided by the current liabilities gives the ratio.

DEBT TO EQUITY RATIO

Is the long term debt of the company divided by its net worth or the stockholders equity. Debt to equity ratio varies considerably depending on the business of the company and the attitude of the management towards debt.

INVENTORY TURNOVER (days)

Calculated by dividing 365 (number of days in a year) by the inventory turnover ratio (Net Sales/Inventory). It indicates the number of days in which total inventory of the company is sold. A lower figure is considered better as it indicates that inventory is being sold fast.

SALES TO ASSETS RATIO

Is the sales divided by the total assets of the company. This measures the efficiency with which the assets are being utilised to generate sales.

DEBTORS TURNOVER (days)

Calculated by dividing 365 (number of days in a year) by the debtors turnover ratio (Net Sales/Debtors). It indicates the number of days in which the company is able to collect its debt, or rather how quickly debtors are converted into cash.

RETURN ON ASSETS (percentage)

Is the profit after tax plus interest (adjusted for preference dividend) divided by the total assets as at the end of that year/period. It measures how profitably the assets of the company have been utilised.

GLOSSARY
RETURN ON EQUITY (percentage)
Is the profit after tax (adjusted for preference dividend) divided by the net worth or the shareholders equity as at the end of that year/period. It measures the return on shareholders equity and tells shareholders how much money the company is making for them. No matter what industry the company is in, or what its assets size is, all shareholders would rightfully want to invest in a company, which has a high return on equity.

RETURN ON CAPITAL (percentage)

Is the profit after tax plus interest (adjusted for preference dividend) divided by the total capital employed in the company (i.e. net worth plus long term debt) as at the end of that year/ period. It indicates the efficiency with which funds (whether shareholders funds or borrowed funds) are being used.

KEY DATA
Some common abbreviations used: KLTR KMS MDWT MLTR MMBTU MMT MMTR MNOS MPCS MSQM MTPA MU MW NOS TEUs THNOS THTPA kilo litres kilo metres million dead weight tonnes million litres million metric British thermal units million metric tonnes million metres million numbers million pieces million square metres million tonnes per annum million units mega watts numbers twenty equivalent foot units thousand numbers thousand tonnes per annum

NOTE: Figures have not been annualised for accounting periods, which are not for 12 months. Furthermore, due to rounding off, totals or percentages may not tally. Previous year figures have been re-grouped wherever necessary so as to correspond with current year figures. NA = not available/not applicable, NM = not meaningful

BANKING GLOSSARY
Price/Book value per share Current market price/Adjusted book value per share For the banking sector this ratio is more relevant than the P/E ratio. In the case of a bank, capital is the asset, which is rightly reflected in its networth. When one adjusts the networth for the net non-performing assets, the adjusted book value is derived. It is in this context that price to book value gains prominence. It is calculated by reducing the interest expenses from the income earned in the form of interest on total interest bearing assets. This ratio indicates the asset quality of a bank. It indicates what percentage of the banks advances are of poor quality (not paying interest or in some cases the principal too). This ratio indicates the extent to which the borrowings are utilised for the purpose of lending activities. Interest earned by the bank in a period or year is divided by the number of equity shares outstanding at the end of the year. All data given on a per share basis allows investors to compare the performance of companies irrespective of which sector they are in and irrespective of the size of the companies.

Net interest income

Interest income - Interest expenses

Net NPA to advances ratio

Net NPAs/Total Advances

Credit/Deposit ratio

Total advances/Total deposits

Interest Income/share

Interest income/ Number of Shares Outstanding

Net profit margin

(PAT / Interest income)*100 Net worth is also known as shareholders equity or shareholders funds. Net worth includes equity share capital and all reserves (including revaluation reserve) less expenses not written off. It is that part of the bank which belongs to the shareholders.

Net worth

Equity Share Capital + Reserves - Miscellaneous Expenditure

Yield on advances Cost of deposits

Interest on advances/ Total advances Interest expended on deposits/ Total deposits Capital/ Risk weighed assets, Capital includes Tier I and Tier II capital. Difference between yield on advances and cost of deposits Loans given out by the bank in the form of working capital or term loans. Retail loans are also included in this. Money accepted from the depositors in the form of current, savings and fixed deposits. Money invested in assets other than loans such as government securities and other debt instruments.

Interest the bank receives on its loans. Interest the bank gives to its depositors.

Capital Adequacy

A higher ratio indicates that the bank is in a position to carry out larger quantum of business (lending) and vice versa.

Interest spread

Advances

Deposits

Investments