DISSERTATION STUDY ON “The Study of the Sugar Industry and the Financial Performance Analysis of Three Sugar Units done for IDBI” This project report is being submitted as part of the requirements of the MBA Program of Bangalore University (2003-05). The study has been undertaken by: CIBY OOMMEN Reg. No. 03VWCM6023 With the guidance and support of Prof. Guha Faculty, ABA 1
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DISSERTATION STUDY ON
“The Study of the Sugar Industry and the Financial Performance
Analysis of Three Sugar Units done for IDBI”
This project report is being submitted as part of the requirements
of the MBA Program of Bangalore University (2003-05). The study
has been undertaken by:
CIBY OOMMEN
Reg. No. 03VWCM6023
With the guidance and support of
Prof. Guha
Faculty, ABA
ALLIANCE BUSINESS ACADEMY
BANGALORE – 560 076
Batch: 2003-2005
1
DECLARATION
I, Ciby Oommen, studying in Alliance Business Academy,
Bangalore do hereby declare that this dissertation study on the
topic “The study of the Sugar Industry and
the Financial Performance Analysis of Three
Sugar Units done for IDBI” is an original research
work carried out by me as part of the requirements of the MBA
Program of Bangalore University (Batch of 2003 – 2005).
My guide for the training has been Prof. K. N. Guha.
I further declare that this project report has not been submitted
earlier to any other University or Institute for the award of any
Degree or Diploma.
Date: 9.06.2005 CIBY OOMMEN
Reg. No 03VWCM6023
Place: Bangalore ALLIANCE BUSINESS ACADEMY
2
CERTIFICATE
This is to certify that Ms. Ciby Oommen, of Alliance Business
Academy, pursuing her MBA degree through Bangalore University
has done a dissertation study on:
“The study of the Sugar Industry and the
Financial Performance Analysis of three
Sugar Units done for IDBI”
This work is based on an original project study conducted by her
under my guidance. This has not formed a basis for award of any
degree by Bangalore University or any other university.
Date: 10.06.05
Place: Bangalore
Prof. K.N. Guha
Faculty
Alliance Business Academy
3
ACKNOWLEDGEMENT
It would not be fair to start the formal proceedings in this study report without recognizing the efforts and input of all those people without whom this would not have been possible.
At first hand I would like to thank Mr. Sudhir. G. Angur, our chairman and Dr. B. V. Krishnamurthy, our director for giving me this opportunity.
I extend my deepest gratitude to Prof. Guha, my guide and teacher without whose valuable guidance it would have been impossible for me to make sense of this project.
I would also like to mention the valuable inputs given by the managing directors of the three sugar units without whom this would not have been possible.
I also like to thank my friends who have rendered their help and support in the completion of the project work.Finally, just a word for my parents, if not for whom this would be pointless.
Thank You.
4
ABSTRACT
Industrial Development Bank of India (IDBI), one of the major Financial
Institutions in India has contributed to the growth of National economy and has
always been supportive to the Government by assisting in its development
activities. This institution was established with a view to analyzing/ determining the
problems and prospects of the emerging industries in India. In addition to analysis
and determining the problems, the institution also strives towards enhancing the
scope for overall development of those emerging industries. One such emerging
industries namely the sugar industry, has been the topic of the study.
India is the largest producer and consumer of sugar in the world, with Maharashtra
contributing over one-third of country’s sugar output. There are around 434 Sugar
Mills in India. In India sugar is produced mainly in the states of Andhra Pradesh,
Bihar, Gujarat, Karnataka, Maharashtra, Madhya Pradesh, Punjab, Rajasthan, Tamil
Nadu and Uttar Pradesh. Indian sugar industry is highly fragmented with organized
and unorganized players. The unorganized players mainly produce Khandasari and
Khandari, the less refined forms of sugar. The government had a controlling grip
over the industry, which has slowly yet steadily given way to liberalization.
In the past few years the sugar industry in India has been facing several problems
like mounting stocks, controls by the Government, low capacities etc.
To understand the reasons for such problems and the effect of the industry trends
three sugar units assisted by IDBI have been studied. The financial analysis of the
sugar units was done using financial analysis tools like ratio analysis, common-size
statements and trend analysis. This financial analysis forms the basis for
sanctioning of loans by IDBI.
1.0 INDUSTRY PROFILE
5
1.1 HISTORY OF FINANCIAL INSTITUTIONS
The Government of India had set up Financial Institutions (FIs) for providing
finance to those sectors of the economy to which commercial banks do not
provide finance. These institutions handle the problem of providing long-term
finances at affordable rates. The Industrial Finance Corporation of India (IFCI)
was formed in 1948 to finance development especially in the industrial sector.
Broadly speaking such FIs are known as Development Banks. For each
category of term financing activity, an apex All India Development has been
promoted. There are separate development institutions for agriculture, industry,
investment, tourism, SSI, etc.
FIs in India comprises of 14 institutions at the national level and 46 at the State
Level. The national level institutions comprise 6 All India Development Banks
(AIDBs), 5 Specialized Financial Institutions (SFIs) and 3 Investment
Institutions (IIs). At the State Level, there are 18 State Financial Corporations
(SFCs) and 28 State Industrial Development Corporations (SIDCs). These
institutions have played an important role in the development of the industries
and thus the success of the economy.
1.1.1 All India Development Banks (AIDBs)
Industrial Finance Corporation of India (IFCI) was set up in 1948 to
provide long-term finance to industrial sectors.
Industrial Credit and Investment Corporation of India (ICICI) followed
in 1955, and State Financial Corporations under the SFC Act were set up
thereafter to cater the specific industrialization needs of the States.
Industrial Development Bank of India (IDBI) was incorporated by an
Act of Parliament in 1964, mainly to provide the required thrust to
accelerate industrialization and to meet the increasing need of capital.
Industrial Reconstruction Bank of India (IRBI) was set up in 1971 to
nurture sick units.
IRBI is renamed as Industrial Investment Bank of India (IIBI) and
Small Industries Development Bank of India (SIDBI)
6
1.1.2 Specialized Financial Institutions (SFIs)
In recent years, the government has set up 4 Specialized Financial Institutions
and they are as follows:
Export and Import Bank of India (EXIM bank) was hived off from IDBI
in 1982 as a separate institution.
The Risk Capital and Technology Corporation Ltd. (RCTC)
Tourism Finance Corporation of India Ltd. (TFCI)
Technology Development and Information Corporation of India (TDICI)
and
ICICI set up to fund VC projects.
1.1.3 Investment Institutions (IIs)
The following are the Investment Institutions:
Life Insurance Corporation of India (LIC)
Unit Trust of India (UTI)
General Insurance Corporation of India (GIC)
1.2 COMPANY PROFILE - IDBI
Industrial Development Bank of India (IDBI) was established in 1964 by the
Government of India under an Act of the Parliament, called the Industrial
Development Bank of India Act, 1964 (IDBI Act). The IDBI Act governs the
functions and working of IDBI.
Initially, IDBI was set up as a wholly owned subsidiary of the Reserve Bank
of India (RBI), to provide credit and other facilities for the development of
industry. Due to manifold increase in its activities and diverse responsibilities,
IDBI was reconstituted through legislation in 1976 enacted by Parliament and
was made the premier financial institution of the country. In 1976, the
ownership of IDBI was transferred from RBI to the Government of India and
it was entrusted with the additional responsibilities of acting as the principal
7
financial institution for coordinating the activities of institutions engaged in
the financing, promoting or development of industry.
In 1982, IDBI transferred its International Finance Division, which was
providing export finance to industry to the Export and Import Bank of India,
which was established as a wholly owned corporation of the Government of
India. In 1990, IDBI transferred its portfolio comprising the operations
relating to small-scale industries were shifted to the Small Industries
Development Bank of India (SIDBI), as a wholly owned subsidiary. CARE is
the credit rating agency promoted by IDBI.
In October 1994, the IDBI Act was amended, which permitted IDBI to raise
equity from the public, subject to the provision that the holding of the
Government should not be below 51% of the issued capital. The amendment
also aimed at providing greater operational flexibility to IDBI. This would
help IDBI in responding to the changing needs of industrial sector in a much
more prompt and decisive manner. Following this amendment, in July 1995,
IDBI made its initial public offering of equity shares aggregating Rs.2184
crore. Simultaneously, the Government also offered for sale a part of its
holding of equity shares in the capital of IDBI aggregating Rs.187.5 crore to
the Indian public. On completion of allotment of shares to the public, the
Government shareholding in IDBI was reduced to 72.14% in line with
recommendations of Narasimham Committee, and as on date.
The Government stake now stands at 57.76%. In August 2000, IDBI became
the first All India Financial Institution to obtain ISO 9002 Certification for its
treasury operations. Since its inception IDBI has played a pioneering role in
fulfilling its mission of promoting industrial growth in line with national plans
and priorities.
1.3 PRODUCTS AND SERVICES PROFILE
8
IDBI provides finance for the establishment of new industrial projects as well
as for expansion, diversification and modernization of existing industrial
enterprises. IDBI has made efforts to respond to the financial needs of the
industry by constantly expanding its range of products and services.
IDBI currently offers the following major products and services to industrial
concerns:
1.3.1 Direct Finance
Under direct finance, assistance is provided to the industrial units directly.
During 2003-04, approximately 91% of total sanctions and 94% of the total
disbursements were under direct finance.
Project Finance
Project Finance involves providing credit and other facilities to medium and
other large scale units as well as for the establishment of new projects as well
as for expansion, diversification and modernization of existing industrial
units. Project finance is granted directly to units established as companies in
private, joint and public sectors, and also to co-operatives. Assistance under
project assistance can be either in the form of equity, term loans or a mix of
both.
Infrastructure Finance
Infrastructure development has been a keen commitment on the country’s
macro agenda on account of its deterministic influence on overall economic
growth. Reflecting national priorities, IDBI has adopted infrastructure
financing a key focus area. Infrastructure financing continues to be the Bank’s
thrust area with IDBI financing projects involving large financial outlay.
Assistance to infrastructure projects during 2003-04 amounted to Rs.440 crore
(sanctions) and Rs.813 crore (disbursements).
9
Financing of Feature Films
Pursuant to the Government of India giving industry status to Entertainment
industry, including films and approving the same as an eligible activity for
financing under the IDBI Act, IDBI has introduced a scheme for financing the
film industry.
Equipment Finance and Asset Credit
Under equipment finance, rupee and foreign currency loans are given to
industrial units conforming to certain financial criteria for the purpose of
financing acquisition of specific items of machinery and equipment. Such loans
are secured by charge on specific assets and generally have a maturity of up to 6
years.
Under asset credit facility, a line of credit is extended to industrial units for
financing of their normal capital expenditure over a period of about 5-6 years
and is secured by a charge on the assets so acquired.
Equipment leasing
Financial lease is provided by IDBI for the purchase of indigenous / imported
equipment for a period of 3-10 years, in the form of full payout financial lease.
Direct Discounting of Bills
IDBI provides facilities for direct discounting of bills of exchange and
promissory notes, which arise from the sale of indigenous machinery on a
deferred payment basis by a seller to a domestic purchaser.
Underwriting and Direct Subscription
As part of project finance and capital market activities, IDBI underwrites public
and rights issues and provides direct subscription support in respect of equity as
well as debt instruments.
Energy Conservation
10
IDBI provides rupee and foreign currency loans for the acquisition and
installation of energy conservation equipment. It also provides term loans to
pollution control and prevention projects in highly polluting industrial sectors. It
also provides finance for implementing Ozone Depleting Substances (ODS)
phase out projects under the Montreal Protocol.
Venture Capital
Venture Capital finance is extended by IDBI for projects involving the
development and use of indigenous technology, for projects involving
adaptation and development of imported technology, as well as for projects
which fall in the high-risk, high-return venture category.
Corporate Loans & Working Capital
IDBI also provides loans to corporates to meet the working capital and other
normal expenditure under the corporate loan Scheme and Treasury product
facilities.
1.3.2 Indirect Finance
This refers to the provision of finance to industrial concerns through State
Financial Corporations (SFCs), State Industrial Development Corporation
(SIDCs) and Commercial Banks. Under indirect finance, the responsibility for
repayment of loans to IDBI rests with the relevant intermediary institution or
bank, by ways of:
Refinance facilities to SFCs, SIDCs, and banks against their loans to
medium-sized industrial concerns throughout India.
Rediscounting of bills of exchange discounted by banks arising from
sale of indigenous machinery on deferred payment terms.
Investment is shares of other financial institutions/SFCs and;
Line of credit to SFC/SIDCs.
Indirect finance form only 3% of the total IDBIs portfolio.
1.3.3 Financial Services
11
Merchant Banking
IDBI’s capital market division provides professional advice and service to
industry for capital market issues, loan and guarantee syndication, project
advice or appraisal, capital restructuring and mergers and acquisitions.
Forex Services
IDBI offers various foreign exchange related services namely spot and forward
purchases of currencies for letters of credit and debt servicing, swaps, forward
exchange rate agreements and other derivative products.
Corporate Advisory Services
IDBI offers advisory services to corporates. These include techno-economic
evaluation of projects, identification of foreign partners/investors and assistance
in evaluation and negotiations. It also provides support in structuring financing
plan and advising on financing options. Assistance is provided in restructuring
of existing corporates through mergers, acquisitions and divestments. It
undertakes valuation of shares and advises public sector undertakings of
industry studies.
1.4 SUBSIDIARIES
IDBI has set up a host of subsidiaries and associates with a view to expand the
functional reach of the IDBI Group and take advantage of opportunities in a
liberalized market economy.
The main subsidiaries of IDBI are:
IDBI Bank Ltd
Small Industries Development Bank of India (SIDBI)
IDBI Capital Market Services Ltd (ICMS)
IDBI Trusteeship Services Ltd. (ITSL)
IDBI Intech Ltd. (INTECH)
IDBI Home Finance
12
1.5 SOURCES OF FUNDS
With a view to foster industrialization and to provide concessional finance to
the industry, the GOI granted IDBI concessional funds. Besides equity support
by the Government, IDBI also enjoyed tax exemption, raised concessional funds
by way of SLR bonds, borrowings under capital bonds scheme, borrowings
from the corporates I.T. scheme, etc. Since the advent of liberalization,
concessional funds more or less evaporated and the IDBI had to rely on market
borrowings.
At present, the principal sources of funds are:
Equity.
Market related borrowings including Public Issue, Certificates of deposits,
fixed deposits and private placement of unsecured bonds.
Borrowings from the Government and RBI.
Borrowings by way of Government Guaranteed Rupee Bonds.
Deposits and borrowing from other sources.
Foreign currency borrowings.
Multilateral and bilateral credits, syndicated loans and other foreign
currency borrowings.
Internal generation
1.6 OPERATIONS
IDBI’s portfolio of direct finance comprises over 3200 companies representing
the complete range of industrial activities and a well-diversified client profile.
Its portfolio which includes loans, investments and guarantees, etc. as on
September 30, 2004 was Rs.54677 crore and March 31, 2005 was Rs.57850
crore.
Particulars regarding the effective sanctions and disbursements for the last four
years are given in APPENDIX A – Tables A1, A2 and Graph G1.
1.7 INDUSTRY-WISE BREAK-UP OF PORTFOLIO
13
IDBI’s loan portfolio is well diversified among industries. The major
outstandings are to the iron & steel, power, cotton textiles, telecom services and
petrochemicals, which together accounted for about 48% of the outstandings as
on March 31, 2004. Recently IDBI has revised the exposure limit to individual
industry at 10% of its total portfolio or Rs.5000 crore whichever is lower. As on
March 31, 2004 only two industries viz Iron & Steel and Electricity Generation
exceeded the limit. The industry-wise breakdown of the outstandings as on
March 31, 2004 is given in APPENDIX B – Tables B1 and Graph G1.
1.8 IDBI’S CREDIT RATING
1.8.1 International Rating
Japan Rating and Investment Information Inc (R&I) has accorded to
IDBI, the highest international rating obtained by an Indian borrower viz
“BBB” for its Japanese yen bond issues in February 1991.
Standard & Poor’s assigned “BB” long term foreign currency credit
rating to IDBI.
Moody’s Investors services have assigned a long-term foreign currency
debt rating of “Baa3” with positive outlook.
Fitch, the international rating agency, has assigned long-term foreign
currency rating of “BB+” to IDBI.
1.8.2 Domestic Rating
“AAA” by the domestic rating agencies.
The recent Flexi Bonds of IDBI have been rated as “AA+” by CRISIL, FITCH
and “LAA” by ICRA, indicating high credit quality with a low expectation of
Credit risk.
14
2.0 RESEARCH METHODOLOGY
2.1 STATEMENT OF PROBLEM
The problems is to find out a basis for sanctioning of loans by IDBI to the Sugar
Industry particularly in reference to three units.
2.2 OBJECTIVES OF STUDY
Identify the problems prevalent in the sugar industry.
Identify the problems faced by the three units under study.
Identify the possible ways of reviving the ailing sugar units.
2.3 SCOPE OF THE RESEARCH
The study was done for three sugar units in Coimbatore namely Rajshree
Sugars and Chemicals Ltd, Shakthi Sugars Ltd and Bannari Amman Sugars Ltd
2.4 RESEARCH DESIGN
Exploratory research was conducted to understand the present state of the
industry and the problems faced by the industry. Secondary data was collected
from published articles in magazines and the internet. The financial details of
the three sugar companies under study were obtained from the published annual
reports of these units.
2.5 DATA ANALYSIS
The performance analysis of the sugar units were done by analyzing the
financial statements of the units over the past four years using tools like ratio
analysis, trend analysis and common-size analysis.
15
3.0 THE SUGAR INDUSTRY
3.1 INTRODUCTION
Sugar is one of the oldest commodities in the world and traces its origin to 4th
century AD in India and China. In those days, sugar was manufactured only
from sugarcane. The eighteenth century witnessed the development of new
technology to manufacture sugar from sugar beet. The European, American, and
Oceanic countries pioneered this.
Today, sugar is produced in 121 Countries and global production exceeds 120
million tons a year. Approximately 70 percent is produced from sugar cane, a
very tall grass with big stems, largely grown in the tropical countries. The
remaining 30 percent is produced from sugar beet, a root crop resembling a
large parsnip grown mostly in the temperate zones of the northern hemisphere.
In India sugar is produced from sugar cane. A typical sugar content for mature
cane would be 10% by weight but the figure depends on the variety and varies
from season to season and location to location. Equally, the yield of cane from
the field varies considerably but a rough and ready overall value to use in
estimating sugar production is 100tons of cane per hectare or 10 tons of sugar
per hectare.
3.2 THE INDIAN SUGAR INDUSTRY
India, along with Brazil, is presently a dominant player in the global sugar
industry. Given the growing sugar production and the structural changes
witnessed in Indian sugar industry, India is all set to continue its domination at
the global level.
India is the largest producer and consumer of sugar in the world, with
Maharashtra contributing over one-third of country’s sugar output. There are
around 434 Sugar Mills in India as on March 2004. In India, sugar is produced
mainly in the states of Andhra Pradesh, Bihar, Gujarat, Karnataka, Maharashtra,
DEFERRED TAX ASSET NA NA NA 100INVESTMENTS NA NA NA 100CURRENT ASSETS, LOANS AND ADVANCESCurrent AssetsInventories 142.1472 132.7989 122.934 100Sundry debtors 251.5642 209.0354 122.687 100Cash and bank balances 249.9972 120.3003 77.82435 100Loans and advances 186.4414 144.9713 107.3908 100
146.1049 134.4893 122.1008 100Less: Current Liabilities and provisions 105.0949 141.4164 125.7894 100Net current assets (Working Capital) 171.4923 130.2011 119.8173 100Miscellaneous Expenditure (not written off) 420.3918 477.0155 501.0572 100P&L Account 69.83194 126.5185 129.8148 100TOTAL (Capital deployed) 121.8387 113.1382 113.3504 100
25
TABLE C5 - TREND ANALYSIS - P&L
2003-04 2002-03 2001-02 2000-01
Sales inclusive of Excise Duty 112.2593 109.4184 104.7925 100Other Income 3184.025 2619.23 1434.483 100Inventory Change 45.84892 33.5159 91.71186 100TOTAL INCOME 106.6718 100.7284 105.3598 100
CURRENT ASSETS, LOANS AND ADVANCES Current Assets Inventories 1049503976 688136860 842309040 1284770524Sundry debtors 107956358 80467934 175753283 54217809Cash and bank balances 6764615 5477515 54181159 7850361Loans and advances 150376473 312713948 403111367 526847569
1314601422 1086796257 1475354849 1873686263Less: Current Liabilitites and provisions 627813002 541686436 604256353 494975799Net current assets ( Working Capital) 686788420 545109821 871098496 1378710464Deferred Tax asset 62018525 58110257 0 0Miscellaneous Expenditure(not written off) 14050150 90825070 22384792 13352699TOTAL(Capital deployed) 3043475465 2930413429 2926322826 3146483836
Pft/Loss after tax -144996364 -56887379 54565670 96034485
ADD: Prvn for tax for earlier yrs written back 0 0 368931 0LESS:Share issue expenses written off 0 543252 931297 1164125TOTAL net pft for the yr -144996364 -57430631 54003304 94870360
ADD: surplus from previous year 83552793 155650090 138484532 104604797
49
Debenture Redemption reserve written back 0 10000000 0 0Proposed dividend on Preference Shares written back 24666666Transfer from General Reserve -36776905TOTAL PFT AVAILA BLE FOR APPROPRIATION -73553810 108219459 192487836 199475157
2003-04 2002-03 2001-02 2000-01SOURCES OF FUNDS:SHAREHOLDERS' FUNDSShare capital 75.6826 75.6826 88.2606 100Reserves and surplus 85.6021 99.0507 101.9185 100Net worth 82.5507 91.8623 97.7171 100LOAN FUNDSSecured Loan 107.2512 95.3815 91.1694 100Unsecured Loan 89.9728 58.9116 52.3226 100Total debt 106.6055 94.0185 89.7176 100Capital employed 96.7262 93.1330 93.0030 100DEFERRED TAX LIABILITY NA NA NA 100TOTAL 96.7262 93.1330 93.0030 100APPLICATION OF FUNDS:FIXED ASSETSCost 123.5463 71.3351 100.9759 100Less: Depreciation 149.0749 114.8591 118.3680 100Net block 114.1742 55.3565 94.5909 100Capital work-in-progress 1.7930 1.8205 1.7930 100Capital expenditure on project 100.0000 10262.2014 183.0338 100Total fixed assets 112.7775 109.0780 93.9709 100INVESTMENTS 187.4841 188.8935 189.0019 100CURRENT ASSETS, LOANS AND ADVANCESCurrent AssetsInventories 81.6880 53.5611 65.5610 100Sundry debtors 199.1160 148.4161 324.1615 100Cash and bank balances 86.1695 69.7741 690.1741 100Loans and advances 28.5427 59.3557 76.5139 100
70.1612 58.0031 78.7408 100Less: Current Liabilitites and provisions 126.8371 109.4370 122.0780 100Net current assets ( Working Capital) 49.8138 39.5377 63.1821 100Deferred Tax asset NA NA NA 100Miscellaneous Expenditure(not written off) 105.2233 680.2001 167.6425 100TOTAL(Capital deployed) 96.7262 93.1330 93.0030 100
Sales 46.2433 59.1917 80.2478 100Other income 25.6497 15.6193 67.5471 100Inc/Dec in stock 69.8551 -30.1150 -84.8664 100
TOTAL INCOME 47.7197 37.3261 48.9176 100
Material cost 67.8327 49.5958 45.8758 100Purchase of fertilisers and insecticides 103.6926 51.6542 64.9619 100Manufacturing and other expenses 48.2046 35.8598 49.8907 100Research, farma nd devt expenditure 59.4372 39.0523 62.1290 100Interest and finance charges 36.7500 30.3808 51.2199 100Depreciation 49.9840 34.9421 53.2275 100Extra-Ordinary expenditure 54.8910 108.2941 11.5522 100
TOTAL EXPENDITURE 54.6951 40.7229 48.6425 100
Profit/Loss before tax -153.9707 -60.8931 56.8734 100
LESS:Prvn of tax NA NA NA 100LESS:Current tax NA NA NA 100LESS: Deferred tax NA NA NA 100LESS:Wealth tax 59.2932 98.8220 160.3625 100
Pft/Loss after tax -150.9836 -59.2364 56.8188 100
ADD: Prvn for tax for earlier yrs written back NA NA NA 100LESS:Share issue expenses written off 0.0000 46.6661 79.9997 100TOTAL net pft for the yr -152.8363 -60.5359 56.9233 100
ADD: surplus from previous year 79.8747 148.7982 132.3883 100Debenture Redemption reserve written back NA NA NA 100Proposed dividend on Preference Shares written back NA NA NA 100Transfer from General Reserve NA NA NA 100TOTAL PFT AVAILA BLE FOR APPROPRIATION -36.8737 54.2521 96.4971 100
104.7729 97.3452 93.2548 100Less: Current Liabilitites and provisions 138.4312 97.4833 82.6751 100Net current assets ( Working Capital) 84.9940 97.2640 99.4718 100Deferred Tax asset NA NA NA 100TOTAL(Capital deployed) 90.1330 93.6703 90.5135 100
TABLE E5 - TREND ANALYSIS - P&L
2003-04 2002-03 2001-02 2000-01SalesOther income 87.1054 71.2227 118.1249 100Inc/Dec in stock 139.3518 333.7633 58.1574 100
248.3982 172.0580 -226.3913 100TOTAL INCOME
91.3717 77.2050 109.7568 100Material costPayment and Benefits to Employees 122.6402 89.2757 124.4403 100Manufacturing, Selling, Administrative and other expenses 65.7541 68.7972 97.3569 100Excise Duty and Taxes 86.3638 72.6938 94.7541 100Interest 62.3365 43.1732 72.3863 100Depreciation 125.0005 119.0994 126.5731 100
57
142.5622 134.3192 123.9231 100TOTAL EXPENDITURE
100.4988 79.2823 107.7262 100Profit/Loss before tax
-48.8039 45.3006 140.9427 100LESS:Prvn of taxCurrent tax 0.0000 0.0000 150.0000 100Deferred tax NA NA NA 100ADD:Reversal of Deferred Tax NA NA NA 100
NA NA NA 100Pft/Loss after taxBalance brought forward from previous year -42.9175 34.5871 139.1010 100
APPROPRIATIONS:Transfer to Capital Redemption Reserve-Shares Buy BackProposed dividend NA NA NA 100Transfer to General Reserve 0.0000 87.9430 87.9430 100Tax on distributed profits 0.0000 44.6300 188.6278 100Surplus carried to b/s 0.0000 0.0000 40.7736 100