A

PRESENTATION
ON

ACCOUNTINGS FOR
MANAGERS
AT
GMMPFAUDLER LIMITED

Presenter : PATEL JAY M.

Agenda : -

1. company profile
2. Horizontal Analysis
3. Vertical Analysis
4. Ratio Analysis
5.Findings & recommendations
6. Bibliography
7. Annexure

1.Company Profile
Name of the Company

GMMPFAUDLER LTD

Address of the Company

Regd. Office Address

Vithal Udyognagar,
Anand-Sojitra Road
District Karamsad
State Gujarat
Pin Code 388325
Tel. No. 02692-

661700,02692-230416
Fax No. 02692661888,02692-236467
Email :
worksko@gmmpfaudler.co.in
Internet :
http://www.gmmpfaudler.com
Name of Promoters
PATEL.

SHRI JETHABHAI

Establish Year

In the Year 1962.

Financial Controller

Company Secretary
Statutory Auditors

AMAR NATH MOHANTY

MITTAL MEHTA
KALYANIWALLA & MISTRY,
CHARTERED ACCOUNTANTS,

MUMBAI.
Business Group

MNC Associate

Industry Type

Engineering Heavy

Public Issue Date

Not Avallable

BSE CODE

505255

NSE CODE

Not Available

Face Value

Rs. 2

Market Lot

Rs.1

ISIN

INE541A01023

2. Horizontal Analysis
The horizontal analysis of the balance
sheet of Gmmpfaudler Ltd. is according to the
Annual Report of the company.
This is calculated taking the previous year as base
year and compared it with current years figure in
percentage changes.
Percentage of change is calculated taking the
amount in the previous year. E.g.; for 2010
the amount of 2009 is taken as base i.e.; change
in total assets is
(93.89 88.91) / 88.91 * 100 = 0.43

Like above all are counted.

Sources Of Funds
Total Share Capital
Equity Share Capital
Share Application
Money
Preference Share
Capital
Init. Contribution
Settler
Preference Share
Application Money
Employee Stock Opiton
Reserves
Revaluation Reserves
Networth
Secured Loans
Unsecured Loans
Total Debt
Minority Interest
Policy Holders Funds
Group Share in Joint
Venture
Total Liabilities

Application Of Funds
Gross Block
Less: Accum.
Depreciation
Net Block
Capital Work in
Progress
Investments
Inventories
Sundry Debtors
Cash and Bank Balance
Total Current Assets
Loans and Advances
Fixed Deposits
Total CA, Loans &
Advances
Deffered Credit
Current Liabilities
Provisions
Total CL & Provisions
Net Current Assets
Minority Interest
Group Share in Joint
Venture
Miscellaneous

Horizontal Analysis of Balance Sheet of GMM Pfaudler

------------------- in Rs. Cr. ------------------Mar '09 Mar '10 increase
% change in Mar '11 increase
% change in Mar '12 increase
/decrease
2010
/decrease
2011
/decrease
2010
2011
2012
12 mths 12
12 mths
12 mths
mths
2.92
2.92
0
0
2.92
0
0
2.92
0
2.92
2.92
0
0
2.92
0
0
2.92
0
0
0
0
0
0
0
0
0
0

% change in
2012

0
0
0

0
85.98
0
88.9
0
0
0
0
0
0

0
90.98
0
93.9
0
0
0
0
0
0

0
5
0
5
0
0
0
0
0
0

0
5.8153059
0
5.624297
0
0
0
0
0
0

0
101.6
0
104.52
4.37
0
4.37
0
0
0

0
10.62
0
10.62
4.37
0
4.37
0
0
0

0
11.672895
0
11.309904
0
0
0
0
0
0

0
111.46
0
114.38
0
0
0
0
0
0

0
9.86
0
9.86
-4.37
0
-4.37
0
0
0

0
9.70472441
0
9.43360122
-100
0
-100
0
0
0

88.9

93.9

5.624297

108.89

14.99

15.963791

114.38

5.49

5.04178529

Mar '09 Mar '10

12 mths 12
mths
70.78
73.03 2.25
31.67
35.45 3.78

Mar '11
12 mths

Mar '12
12 mths

3.1788641
11.935586

81.86
39.64

8.83
4.19

12.090922
11.819464

96.18
43.35

14.32
3.71

17.4932812
9.3592331

39.11
0.42

37.58
0.77

-1.53
0.35

-3.912043
83.333333

42.22
6

4.64
5.23

12.346993
679.22078

52.83
2.88

10.61
-3.12

25.13027
-52

7.32
62.15
34.39
7.91
104.45
8.01
0.14
112.6

7.9
57.24
32.75
6.74
96.73
6.24
1.73
104.7

0.58
-4.91
-1.64
-1.17
-7.72
-1.77
1.59
-7.9

7.9234973
-7.9002414
-4.7688281
-14.791403
-7.3910962
-22.097378
1135.7143
-7.0159858

7.76
73.1
32.88
7.1
113.08
9.07
0
122.15

-0.14
15.86
0.13
0.36
16.35
2.83
-1.73
17.45

-1.772152
27.707897
0.3969466
5.3412463
16.902719
45.352564
-100
16.666667

8.48
63.98
31.12
17.22
112.32
6.69
0
119.01

0.72
-9.12
-1.76
10.12
-0.76
-2.38
0
-3.14

9.27835052
-12.4760602
-5.35279805
142.535211
-0.67209056
-26.2403528
0
-2.57060991

0
66.52
4.02

0
54.16
2.9

0
-12.36
-1.12

0
0
-18.580878 67.33
-27.860697 1.9

0
13.17
-1

0
24.316839
-34.48276

0
65.29
3.54

0
-2.04
1.64

0
-3.02985296
86.3157895

70.54
42.06
0
0

57.06
47.64
0
0

-13.48
5.58
0
0

-19.109725
13.266762
0
0

69.23
52.92
0
0

12.17
5.28
0
0

21.328426
11.083123
0
0

68.83
50.18
0
0

-0.4
-2.74
0
0

-0.5777842
-5.17762661
0
0

3. Vertical Analysis
The vertical analysis of the profit and loss
account of Gmmpfaudler Ltd. is according to the Annual
Report of the company.
This is calculated taking the total sales
considered as a 100% and the other accounts
compared it with current years figure in percentage
changes.
Percentage of change is calculated taking the
account amount considered as a net sales for any
account analysis considered this formula
(account amount * 100) / net sales

Like above all are counted.

Profit & Loss account of GMM Pfaudler

------------------- in Rs. Cr. ------------------Mar '10 common size % Mar '11 common size % Mar '12 common size %
Income

12 mths

12 mths

12 mths

Sales Turnover
Excise Duty
Net Sales
Other Income
Stock Adjustments
Total Income
Expenditure

164.67
10.19
154.48
1.37
-3.55
152.3

106.596323 155.25
6.59632315 11.23
100 144.02
0.88684619
2.4
-2.2980321 14.35
98.5888141 160.77

107.7975 216.75
7.797528 14.94
100 201.81
1.666435
2.88
9.963894
-4.56
111.6303 200.13

107.403
7.4030028
100
1.4270849
-2.259551
99.167534

Raw Materials
Power & Fuel Cost
Employee Cost
Other Manufacturing Expenses
Selling and Admin Expenses
Miscellaneous Expenses
Preoperative Exp Capitalised
Total Expenses

81.64
8.05
14.87
15.67
8.75
2.61
0
131.59

52.8482651 89.94
5.21103055
8.29
9.62584153
16.6
10.1437079 16.39
5.66416365
5.32
1.6895391
3.64
0
0
85.1825479 140.18

62.44966 117.83
5.756145 10.59
11.52618 19.31
11.38036 20.67
3.693931
0
2.527427 12.64
0
0
97.3337 181.04

58.386601
5.24751
9.5684059
10.242307
0
6.263317
0
89.708141

Mar '10

Mar '11

Mar '12

12 mths

12 mths

12 mths

Operating Profit
PBDIT
Interest
PBDT
Depreciation
Other Written Off
Profit Before Tax
Extra-ordinary items
PBT (Post Extra-ord Items)
Tax
Reported Net Profit
Total Value Addition
Preference Dividend
Equity Dividend
Corporate Dividend Tax
Per share data (annualised)
Shares in issue (lakhs)
Earning Per Share (Rs)
Equity Dividend (%)
Book Value (Rs)

19.34
20.71
0.66
20.05
3.33
0
16.72
-0.39
16.33
5.28
11.06
49.95
0
4.09
0.7
146.18
7.56
140
62.9

12.51942
13.4062662
0.42723977
12.9790264
2.15561885
0
10.8234076
-0.2524599
10.5709477
3.41791818
7.15950285
32.3342828
0
2.64759192
0.45313309
0

18.19
20.59
0.88
19.71
3.47
0
16.24
0
16.24
5.21
11.02
50.25
0
4.09
0.7

94.6271362 146.18
4.89383739
7.54
90.6266183
140
40.717245 67.16

12.63019
14.29663
0.611026
13.6856
2.409388
0
11.27621
0
11.27621
3.617553
7.651715
34.89099
0
2.839883
0.486044
0

16.21
19.09
1.17
17.92
4.91
0
13.01
0
13.01
3.88
9.14
63.21
0
4.09
0.7

8.0323076
9.4593925
0.5797532
8.8796393
2.4329815
0
6.4466577
0
6.4466577
1.9226005
4.5290124
31.32154
0
2.0266587
0.3468609
0

101.4998 146.18
5.235384
6.25
97.20872
140
46.63241 70.14

72.434468
3.0969724
69.372182
34.755463

4. Ratio Analysis
No.

Particulars

2011-12

2010-11

2009-10

Profitability Ratios :

9.46 %

14.30 %

13.41 %

Gross Profit Ratio

Net Profit Ratio

4.53 %

7.65 %

7.16 %

Return on Capital Employed 3.13 %

3.77 %

3.79 %

Earning Per Share

7.54 rs

7.56 ra

Efficiency Ratios :

Stock Turnover Ratio

1.89 times

2.24 times

Total Assets Turnover Ratio

1.76 times

1.32 times

1.64 times

Debtors Ratio

6.48 times

4.38 times

4.72 times

Liquidity Ratios :

Current Ratio

1.63:1

1.70:1

Liquid Ratio

0.70:1

0.58:1

0.69:1

10

Debt Equity Ratio

0.00 rs

1.50 rs

0.00 rs

6.25 rs

2.67 times

1.63:1

5. Findings &
recommendations
From the ratio analysis the following
findings & recommendation can be arrived:The overall situation of the GMMPFAUDLER
Ltd. is good.
The total income of the company is increase but
with it the total expenses also increase so it is not
so good for the company so the management
have tried to decrease the expenses that the
profitability of the company could be high.
The net profit for the year 2012 is very less
or decreased with high margin so it describe the
inefficiency and it is very worse to the share
holders as their return is very low.
Overall operations of the company are
inconsistence. In the year 2012 still the company
does not declared more dividends to share
holders which show some risk towards share
holders.

The net profit, gross profit, and operating

profit margin ratios shows inconsistence in 2011 it
goes high as compared to 2010 but in year 2012 it
goes down as compared to 2011 so company should
have maintain at consistence level.
The Liquidity and solvency ratios indicate
the satisfactory results. It is good for company to
maintain that consistency for better and smooth
operations in future also.
The inventory turnover ratio is at
diminishing trend as it increase and decreases
continuously so the company is not able to maintain
more sales and to get new inventories.
As net profit is not consistence the EPS
ratio is also inconsistence in year 2010 it is more
than year 2011 but in year 2012 it is very less than
year 2010 so company have to tried to decrease its
overall costs and expenses to increase the net profit
and the dividend or earning per share.

6. Bibliography
In preparing this report I have took help of the
followings: Books
1) Ambrish Gupta, Financial Accounting for
Management An Analytical Perspective, New
Delhi, Pearson Education, 3rd edition.
2) V.Rajsekaran & R.Lalitha. Financial Accounting
, Pearson Education in south Asia.
3) Annual Report of GMMPFAUDLER Ltd.: 2011
12.
Websites (E Sources)
1) www.gmmpfaudler.com.
2) www.moneycontrol.com

7. Annexure
Balance sheet and profit and loss account for the
year 2011 -2012
as per Annual report of the company.

Consolidated Balance Sheet of GMM Pfaudler

------------------- in Rs. Cr. ------------------Mar '12
Mar '11
Mar '10
Mar '09
Sources Of Funds
12 mths
12 mths
12 mths
12 mths
Total Share Capital
2.92
2.92
2.92
Equity Share Capital
2.92
2.92
2.92
Share Application Money
0
0
0
Preference Share Capital
0
0
0
Init. Contribution Settler
0
0
0
Preference Share Application Money
0
0
0
Employee Stock Opiton
0
0
0
Reserves
111.46
101.6
90.98
Revaluation Reserves
0
0
0
Networth
114.38
104.52
93.9
Secured Loans
0
4.37
0
Unsecured Loans
0
0
0
Total Debt
0
4.37
0
Minority Interest
0
0
0
Policy Holders Funds
0
0
0
Group Share in Joint Venture
0
0
0
Total Liabilities
114.38
108.89
93.9

Application Of Funds
Gross Block
Less: Accum. Depreciation
Net Block
Capital Work in Progress
Investments
Inventories
Sundry Debtors
Cash and Bank Balance
Total Current Assets
Loans and Advances
Fixed Deposits
Total CA, Loans & Advances
Deffered Credit
Current Liabilities
Provisions
Total CL & Provisions
Net Current Assets
Minority Interest
Group Share in Joint Venture
Miscellaneous Expenses
Total Assets
Contingent Liabilities

Mar '12
12 mths

Mar '11
12 mths

Mar '10
12 mths

2.92
2.92
0
0
0
0
0
85.98
0
88.9
0
0
0
0
0
0
88.9

Mar '09
12 mths

96.18
43.35
52.83
2.88
8.48
63.98
31.12
17.22
112.32
6.69
0
119.01
0
65.29
3.54
68.83
50.18
0
0
0
114.37

81.86
39.64
42.22
6
7.76
73.1
32.88
7.1
113.08
9.07
0
122.15
0
67.33
1.9
69.23
52.92
0
0
0
108.9

73.03
35.45
37.58
0.77
7.9
57.24
32.75
6.74
96.73
6.24
1.73
104.7
0
54.16
2.9
57.06
47.64
0
0
0
93.89

70.78
31.67
39.11
0.42
7.32
62.15
34.39
7.91
104.45
8.01
0.14
112.6
0
66.52
4.02
70.54
42.06
0
0
0
88.91

1.57

0.47

2.36

1.93

Income
Sales Turnover
Excise Duty
Net Sales
Other Income
Stock Adjustments
Total Income
Expenditure
Raw Materials
Power & Fuel Cost
Employee Cost
Other Manufacturing Expenses
Selling and Admin Expenses
Miscellaneous Expenses
Preoperative Exp Capitalised
Total Expenses

Profit & Loss account of GMM Pfaudler

------------------- in Rs. Cr. ------------------Mar '12
Mar '11
Mar '10
Mar '09
12 mths
12 mths
12 mths
12 mths
216.75
155.25
164.67
160.82
14.94
11.23
10.19
14.14
201.81
144.02
154.48
146.68
2.88
2.4
1.37
3.2
-4.56
14.35
-3.55
-1.92
200.13
160.77
152.3
147.96
117.83
10.59
19.31
20.67
0
12.64
0
181.04
Mar '12
12 mths

Operating Profit
PBDIT
Interest
PBDT
Depreciation
Other Written Off
Profit Before Tax
Extra-ordinary items
PBT (Post Extra-ord Items)
Tax
Reported Net Profit
Total Value Addition
Preference Dividend
Equity Dividend
Corporate Dividend Tax
Per share data (annualised)
Shares in issue (lakhs)
Earning Per Share (Rs)
Equity Dividend (%)
Book Value (Rs)

89.94
8.29
16.6
16.39
5.32
3.64
0
140.18
Mar '11
12 mths

81.64
8.05
14.87
15.67
8.75
2.61
0
131.59
Mar '10
12 mths

84.61
7.63
12.92
12.66
7.54
2.29
0
127.65
Mar '09
12 mths

16.21
19.09
1.17
17.92
4.91
0
13.01
0
13.01
3.88
9.14
63.21
0
4.09
0.7

18.19
20.59
0.88
19.71
3.47
0
16.24
0
16.24
5.21
11.02
50.25
0
4.09
0.7

19.34
20.71
0.66
20.05
3.33
0
16.72
-0.39
16.33
5.28
11.06
49.95
0
4.09
0.7

17.11
20.31
1.31
19
3.26
0
15.74
0
15.74
5.52
10.23
43.03
0
4.09
0.7

146.18
6.25
140
70.14

146.18
7.54
140
67.16

146.18
7.56
140
62.9

146.18
7
140
58.61

Thank
You