Escolar Documentos
Profissional Documentos
Cultura Documentos
COMPANY PROFILE
02-15
THEORETICAL ASPECT
16-20
PRACTICAL ASPECT
21-29
RESEARCH METHODOLOGY
30
31-48
PRESENTATION
FINDINGS
49
CONCLUSION
50
SUGGESTION
51
BIBLIOGRAPHY
52
QUESTIONNAIRE
40-42
1|P age
COMPANY PROFILE
OUR VISION
TO BE AMONGST THE MOST ADMIRED COMPANIES IN INDIA COMMITED
TO
EXCELLENCE.
OUR MISSION
MOTIVATED
AND
COMMITTED
TEAM
DEVELOPMENT
FOR
HIGH
PERFORMANCE ORGANIZATION
Innovation and passion to perform have always been the driving forces at J K Organization.
JK Organization, is one of the leading Private Sector Groups in India, was founded over 100
years ago - it's been a century of multi-business, multi-product and multi-location business
operation.
2|P age
Customer Satisfaction has always been our prime focus. We are indeed proud of our highly
experienced and professional team for winning the trust of customers and building strong
relationships with them.
Our 115 company owned stocking points serve over 4000 dealers across the country.
We have set up 130 JK Tyre Steel Wheels - a unique concept in car tyre retailing which
provides value added services like wheel balancing, alignment and tyre care to customers.
Our Truck Radial Care Centers offer after-sales service for Truck/Bus Radials, which operate
on 365 days / 24 hours basis. A large number of such centers have been set up along all major
National Highways.
JK Tyre has been among the top two tyre companies in respect of Customer Satisfaction, as per
JK Power Asia Pacific Study, for many years.
First Indian tyre company to introduce All Steel Truck & Bus Radials in India in 1999
Pioneered Radial technology in India by introducing passenger radials in 1977
First Indian tyre company to be recognized as 'SUPERBRAND' by Global Advertising
Professionals
R & D - TECHNOLOGY OUR DRIVING FORCE
We have always been pushing the limits of possibilities. Our research centers have been our
nerve
centers
for
extensive
research
and
development.
These
are:
Mr. Hari Shankar Singhania Elastomer and Tyre Research Institute (HASETRI) - Jaykaygram,
Kankroli
(Rajasthan)
and
Faridabad
(Haryana)
3|P age
Dr. Raghupati Singhania Center of Excellence for Tyre and Vehicle Mechanics - Chennai (Tamil
Nadu)
FUTURE PLANS
India is fast emerging as a global automobile hub particularly for small cars. It offers immense
opportunities for JK Tyre to grow its business both organically and inorganically.
We have been constantly exploring ways of increasing our presence in different world markets,
through alliances and acquisitions in tyre and related business. In all our Endeavours, our core
focus is on customer delight. Enlarging the customer base, providing them with better quality of
services and more value added products, will continue to be the key areas of our thrust.
4|P age
First in India to manufacture calico prints- {Juggilal Kamlapat cottons spinning and
weaving mills company, Kanpur.}
1940
First in India to manufacture steel bailing Hoops for jute and cotton and to make the
country self sufficient by meeting the entire demand-
Kanpur.
1944
1949
1959
1960
First in India to set up a Hydraulically operated Cane Crushing Mill for Kandsari Sugar
Plant and completed 100 ton plant.
1961
1962
First in India to produce Nylon-6 with its own polymerized raw material- J.K. Synthetics
Ltd., Kota.
1965
First to produce sodium Sulphoxylate Formaldehyde [Rangolite C of Formosul] in IndiaJ.K. Chemicals Ltd., Bombay.
1968
1976
First in India to produce steel belted Radial tyres for passenger car, trucks and busesJ.K. Tyre plant, Kankroli.
1980
First in the world to make steel belted radial tyres for 3 wheelers.
5|P age
1984
1985
1989
1991
Banmore tyre plant {BTP} set up with the capacity of 5.7 lacks tyres per annum.
1992
1994
Indias first T-rated tyre launched Banmore Tyre Plant {BTP} Crossed 100 TPD.
1995
Mercedes Benz launched on JK STEEL RADIALS first tyre manufacturer in the world
to get ISO 9001.
1996
Indias first dual contact high tractions steel radial- aqua sonic launched. {Introduce steel
wheels}.
1998
First tyre manufacturer in the world to get QS 9000. Awarded CAPEXILS highest
export award for 1997-98.
1999
2000
2001
J.K. industries received FOCUS LAC EXPORT award for the year 1999-2000.
Commendation certification of CII ND National exam. Go- carting championships held.
6|P age
JK ORGANISATION
J.K. Organization, founded over 100 years ago, is an eminent
industrial group in India. The Group has multi-business,
multi-product and multi-location operations
JK PAPER LTD.
JK Paper Limited is one of the leading manufacturers of
reading and writing paper
7|P age
JK AGRI-GENETICS LTD.
At JK Agri-genetics limited, concentrates on Research and
Development, production, processing and marketing of hybrid
seeds.
JK SUGAR LTD.
The company's principle activity is to manufacture Sugar.
However, the company currently operates in two segments.
Power and Sugar
8|P age
JK Tyres Plants
Mysore plant- 1 {VTP}
Karnataka
Karnataka
Kankroli
Rajasthan
Banmore
Madhya Pradesh
9|P age
COMPANY HISTORY
JK ORGANISATION
JK Organisation owes its name to Late Lala Juggilal Singhania, a dynamic personality, with
a broad vision. Inspired by the cause of the Swadeshi movement of Mahatma Gandhi, and
driven by the zeal to set up an indian enterprise, Late Lala Kamlapat Singhania founded
J.K. Organisation in the 19th century ushering in a new industrial era in India.
The name JK Organisation, which today is one of the leading Private Sector Groups in India,
was founded over 100 years ago. For J.K. Organisation it's been a century of multi-business,
multi-product and multi-location business operation. The companies in the Group have a
diverse portfolio, including Automotive Tyres & Tubes, Paper & Pulp, Cement, V-Belts, Oil
Seals, Power Transmission Systems, Hybrid Seeds, Woolen Textiles, Readymade Apparels,
Sugar, Food & Dairy Products, Cosmetics, etc.
10 | P a g e
VARIOUS DIMENSIONS:
JK SEEDS
JK SUGAR
JK PAPER LTD
JK LAKSHMI CEMENT
UMANG DAIRIES
CliniRX RESEARCH
FENNER(INDIA) Ltd.
11
JK ORGANISATION AT A GLANCE:-
YEAR EVENTS 1951 - The Comp. was incorporated as a private limited Comp. in West
Bengal in 14th February, 1951. Until 31st March 1970, the Comp. was engaged in the
managing agency business. Thereafter, the Comp. decided to undertake manufacturing
activities and obtained a letter of intent in February 1972 for manufacture of automobile
of & tubes.
The letter of intent was converted into an industrial license in February 1974 for
manufacture of 4 lakh nos. each automobile tyre & tubes per annum. The Comp. was
converted into a public limited Comp. on 1st April 1974. The manufacturing project was
promoted
by
Straw
Products
Ltd
&
J.K.
Synthetics
Ltd.
The Comp. entered into technical collaboration with General Tire International Co.,
U.S.A., [a subsidiary of General Tire & Rubber Co., U.S.A.s] for technical services for a
period of 5 years & sales agreement for supply of technical know-how, engineering &
documentation for operational facilities [for a period of 8 years from 23.8.73s].
Under the collaboration agreement, the Comp. has the right to use on its products the
wording 'Made in collaboration with General Tire International Co., USA'.
YEAR EVENTS 1982 - The company technical collaboration agreement with General
Tire
International
Co.,
was
renewed
for
further
period
of
years.
YEAR EVENTS 1987 - The overall working resulted in substantial profits despite a 51days strike as well as go-slow from 14th October. The strike had since then been resolved
& amicable settlement was reached. Efforts were on to launch a new pattern in steel
belted radial tyre.
YEAR EVENTS 1988 - New steel radial tyres for Maruti Gypsy & Tata mobile were
12
introduced. The Comp. proposed to incur an expenditure of Rs 300 lakhs for installation
of latest & sophisticated R&D equipment.
YEAR EVENTS 1989 - Several new patterns & sizes of tyre were introduced including
a semi-lug Nylon Truck tyre, all of which were well received in the market. 1991 Handeep Investment, Ltd., Hidrive Finance Ltd., Panchanan Investment Ltd., & Radial
Finance Ltd., J. K. International Ltd., Shivdham Properties Ltd., & J. K. Asia Pacific,
Ltd., are subsidiaries of Company.
YEAR EVENTS 1992 The J.K. International division expanded its activities by
opening its office in Moscow besides starting Company's subsidiaries in U.K. and
Honkong. The radial tyre for tractors & business launched in the previous year were well
received.
YEAR EVENTS 1993 - New radial tyre `Brute' & `Ultima' were introduced. The Comp.
was in the process of developing steel belted radial tyre for prestigious cars in the
Mercedes Benz, Peugeot, Daewoo race & Opel Astra. A new pattern developed for bus
and trucks `PE-T8' was well received in the market.
YEAR EVENTS 1994 - The Comp. maintained its pace of growth, despite steep rise in
raw material & input costs & competition. The Company effected an all round cost
reduction & attained higher capacity utilization at both the tyre plants at Jaykaygram and
Banmore.
The T-rated Ultima tyre launched for new generation cars found its acceptance in DCM
Daewoo `Ceilo'. Also J.K. Steel radial was chosen for Mercedes Benz India.
- The Comp. undertook to develop steel radials for GM `Astra'. PAL `Peugekot' FIAT's,
`UNO' & M and M `Ford'.
- The Comp. launched a premium truck tyre `Jet Trak' - 39 which was introduced to meet
13
the need of the heavy load market. The new tractor rear tyre `SONA' was well received in
the market.
YEAR EVENTS 1996 - During this period, a new Car tyre 'Jet Drive XS', the widest
nylon car tyre for Maruti 800 was launched. Along with new semi-lug & heavy duty lug
tyre for trucks, a new lug tyre for super heavy load applications 'Jet Trak 39' was also
introduced. In the Radial category, 'Ultima XR Radial', a terrain tyre was introduced. All
these products were well received in the market.
Both the tyre plants operated to full capacity. In line with JK tyre, the radials unit
introduced the dual contact high traction & high performance Aquasonic steel radial car
tyre. The unit also developed India first & only H-rated ultima Xs' especially for
Mercedes - Benz Cars.
YEAR EVENTS 2000 - The Comp. proposes to reduce its debt by Rs 125 crore in the
current fiscal from the current level of Rs 635 crore by way of
loan repayment.
The Comp. & Indian Oil Corporation have entered into a marketing alliance for installing
digital air pressure gauges and setting up sales & services outlets at IOC petrol stations
throughout the country.
YEAR EVENTS 2002- J. K. Industries Ltd has informed BSE that CRISIL has assigned
a P1+ rating to the Commercial Paper programme of company.
YEAR EVENTS 2003 - J. K. Industries Ltd [JKIs] has a new Marketing Director in Mr.
Ajay Kapila. Before joining JKI, Mr Kapila was Senior Vice-President [Sales &
14
Marketings] at Kinetic Engineering limited He was also Director on board & operational
head of Kinetic direct selling arm - Kinetic Marketing Services Ltd.
emergence as a pure automotive tyre company. Along with the de-merger of its non-tyre
business, Sugar & Agri Seeds, into separate companies namely J. K. Sugar Ltd & J. K.
Agri-Genetics Ltd, JKI also completes the merger of Vikrant Tyre Ltd with itself.
J.
K.
Industries
delists
from
Jaipur
Stock
Exchange
divested its wholly-owned subsidiary called J. K. Drugs & Pharmaceuticals Ltd to TEVA
Pharmaceuticals of Israel.
YEAR EVENTS 2004 -J. K. Industries Ltd has informed that its securities are delisted
from Delhi Stock Exchange Association Ltd [DSEs] w.e.f. January 29, 2004.
YEAR EVENTS 2007 - J. K. Industries Ltd has informed that the name of Comp. has
been changed from J. K. Industries Ltd' to 'J. K. Tyre and Industries Ltd' w.e.f. April 02,
2007.
Comp. name has been changed from J. K. Industries Ltd to J. K. Tyre and Industries
Ltd.
YEAR EVENTS 2008 - The Comp. has issued rights in the ratio of 1:3 at a premium of
Rs.75 per Share.
15
THEORETICAL ASPECT
INTRODUCTION OF RATIO ANALYSIS
MEANING OF RATIO:
A ratio is a simple arithmetic expression of relationship of one to other. It may be
defined as the indicated quotient of two mathematical expressions.
According to Accountants Handbook by Wixon, Kell and Bedford, a ratio is
an expression of the quantitative relationship between two numbers.
According to Myers, Ratio analysis is a study of relationship among the various
financial factors in a business.
16
Standards of comparison
A single ratio in itself does not indicate favorable or
unfavorable condition. It should be compared with some standards. Standard of
comparison may consist of.
Past ratio i.e. ratio calculated from the financial statement of the some firm.
Competitors ratios, i.e. ratios of same selected firms, especially the most
progressive and successful competitor, at the same point in time.
Industry ratios i.e. ratios or the industry to which the firm belongs and
Projected ratios, i.e. ratios developed using the projected or Performa, financial
statements of the same firm.
There are four types of ratios to be calculated to know the status of the firm.
They are,
1. Liquidity ratio
2. Leverage ratio
3. Activity ratio
4. Profitability ratio
17
I. Liquidity ratio
Liquidity ratios measure the ability of the form to meet its current obligation. In
fact, analysis of liquidity needs the preparation of cash budgets and cash and fund flow
statement, but liquidity ratios by establishing a relationship between cash and other
current assets to currents obligations, provide a quick measure of liquidity. A firm
ensures that it does not suffer from lack of liquidity, and also that it does not have excess
liquidity, therefore it is necessary to strike a proper balance between high liquidity and
lack of liquidity.
The most common ratios indicate the extent of liquidity or lack of it is:
Current ratio
Quick ratio
II.LEVERAGE RATIOS
Leverage ratios are calculated t analyze the long-term financial position of the
firm. These indicate mix of funds provided by owners and lenders. As a general rule,
there should be an appropriate mix be debt and owners equity in financing the firms
assets. The process of magnifying the shareholders return through the use of debt is
called financial gearing or trading on equity. Leverage ratios calculated to measure
the financial risk and firms ability of using debt to share holders advantages.
18
The turnover ratios indicate the efficiency with which the capital employed is
rotated in the business. The ratios are employed to evaluate the efficiency with which the
firm manages and utilizes its assets to indicate the speed with which assets are being
converted on turned over into sales. A proper balance sales and generally reflects that
assets are managed well.
IV.PROFITABILITY RATIO
Operating ratio
Return on equity
EPS
DPS
Pay out
19
OBJECTIVES
To know the ability of the firm to meet fixed interest and the cost and repayment
schedules associated with the long term borrowings.
To know about the general profitability of the firm in relation to the sales.
To know about the overall profitability of the firm in relation to its investment.
20
PRACTICAL ASPECT
1. Current ratio:
This ratio relates current assets to current liabilities. The current ratio indicates
the ability of the organization to meet its current obligations. It measures short-term
solvency of the concern.
Current assets
Current ratio=
Current liabilities
years
Current assets
Current liabilities
Current ratio
2004
335.21
126.20
2.66:1
2005
363.31
172.53
2.11:1
2006
525.04
398.06
1.32:1
2007
984
638.12
1.54:1
2008
1488
892.6
1.66:1
21
2.Interest coverage:-
EBIT
Interest coverage=
INTEREST
years
EBIT
INTEREST
Interest coverage
(in.Rs.Cr)
(in.Rs.Cr)
ratio
2004
132.59
9.92
13.37
2005
125.89
11.85
10.62
2006
283.64
10.12
28.03
2007
127.52
28.09
4.54
2008
441.32
28.30
15.59
22
This is the ratio which expressing the basic relationship between debt and equity.
Calculating the ratio of Net assets to Net worth can find this ratio.
Capital employed
Capital equity ratio =
Net worth
years
Capital employed
Net worth
(in.Rs.Cr)
(in.Rs.Cr)
2004
435.34
435.34
1.00
2005
482.82
482.83
0.99
2006
597.86
597.86
1.00
2007
930.78
878.12
1.06
2008
1323.40
1228.40
1.08
23
Debtors turnover ratio can be calculated by dividing total sales by dividing debtors.
Sales
Debtors turn over =
Debtors
years
Sales
Debtors
Debtors turnover
ratio
2004
711.50
276.21
2.58times
2005
922.34
217.42
4.24times
2006
1197.14
412.72
2.90times
2007
2753.22
792.02
3.48times
2008
3604.7
1057.40
3.41times
24
This ratio shows the firms ability in ngenerating sales from all financial resources
committed ton total assets.
Sales
Total assets turnover=
Total assets
years
sales
Total assets
2004
711.50
435.34
1.63
2005
922.34
482.82
1.91
2006
1197.14
597.86
2.00
2007
2753.22
930.78
2.96
2008
3604.7
1323.40
2.72
25
Fixed assets turnover ratio can be calculated by dividing of sales with net fixed
assets.
Sales
Fixed assets turn over ratio=
Net fixed assets
Years
sales
Fixed assets
turnover ratio
2004
711.50
133.24
5.34
2005
922.34
170.05
5.42
2006
1197.14
156.79
7.64
2007
2753.22
247.03
11.15
2008
3604.7
290.9
12.39
26
Current assets turnover ratio can be calculated by dividing of sales with net
current assets.
Sales
Current assets turnover ratio=
Net current assets
Years
sales
Current assets
turnover ratio
2004
711.50
209.01
3.40
2005
922.34
190.79
4.83
2006
1197.14
126.99
9.42
2007
2753.22
345.89
7.96
2008
3604.7
595.40
6.05
27
8. Gross profit ratio:This ratio expresses relationship between gross profit and net sales. It relates the
efficiency with which management produces each unit of product. It indicates the degree
to which the selling price of goods per unit may decline without resulting in losses from
operations to the firm.
The first profitability ratio n relation to sales is the gross profit ratio it is
calculated by dividing the gross profit by sales.
Gross profit
Gross profit ratio =
X 100
Sales
Year
Gross Profit
Sales
(in.Rs.Cr)
(in.Rs.Cr)
(%)
2004
655.38
711.50
92.11
2005
819.88
922.34
88.89
2006
994.86
1197.14
83.10
2007
2178.53
2753.22
79.12
2008
2887.40
3604.7
80.11
28
Net profit ratio is obtained when operating expenses; interest and taxes subtracted
from the gross profit. Net profit ratio helps in determining efficiency with which affairs
of the business are being managed. This ratio is the overall measure of the firms ability
to turn each rupee sales into net profit. The ratio is thus an effective measure to check the
profitability of business.
The net profit margin ratio is measured by dividing profit after tax by sales.
100
Net sales
Years
Net Sales
(in.Rs.Cr)
(in.Rs.Cr)
2004
94.13
711.50
13.23%
2005
71.09
922.34
7.71%
2006
220.12
1197.14
18.39%
2007
65.23
2753.22
2.37%
2008
325.70
3604.7
9.04%
29
RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research problem. It deals
with the objective of a research study, the method of defining the research problem, the
type of hypothesis formulated, the type of data collected, method used for data collecting
and analyzing the data etc. The methodology includes collection of primary and
secondary data.
TYPE OF RESEARCH
DESCRIPTIVE RESEARCH
The study follows descriptive research method. Descriptive studies aims at portraying
accurately the characteristics of a particular group or situation. Descriptive research is
concerned with describing the characteristics of a particular individual or a group. Here
the researcher attempts to present the existing facts by collecting data.
5.2 RESEARCH DESIGN
A research design is a basis of framework, which provides guidelines for the rest
of research process. It is the map of blueprint according to which, the research is to be
conducted. The research design specifies the method of study. Research design is
prepared after formulating the research problem.
5.3 SOURCES OF DATA
Data are the raw materials in which marketing research works. The task of data collection
begins after research problem has been defined and research design chalked out. Data
collected are classified into primary data and secondary data
PRIMARY DATA
Questionnaires were used for collecting primary data
SECONDARY DATA
Secondary data were collected from the companys annual publications,
memorandums of settlements, newspapers, journals, websites, and from library
books
SAMPLE SIZE: NIL
30
Current assets
Current ratio=
Current liabilities
years
Current assets
Current liabilities
Current ratio
2004
335.21
126.20
2.66:1
2005
363.31
172.53
2.11:1
2006
525.04
398.06
1.32:1
2007
984
638.12
1.54:1
2008
1488
892.6
1.66:1
Analysis:
The current ratio of the company is decreased from 2004 to 2006 as 2.66:1,
2.11:1, 1.32:1, later it is increased from 2006 to 2008 as 1.32:1, 1.54:1, and 1.66:1.
31
CURRENT RATIO
3
CURRENT RATIO
2.5
1.5
CURRENT RATIO
1
0.5
0
2004
2005
2006
2007
2008
YEARS
Interpretation:
In the year of 2004, 2005 the current ratio of TechJK TYRE maintains the
standards of 2:1. After the situation is less than 2:1 it shows the margin of safety for
creditors is low and company may be struggling to meet their obligations to pay.
32
2.Interest coverage:-
EBIT
Interest coverage=
INTEREST
years
EBIT
INTEREST
Interest coverage
(in.Rs.Cr)
(in.Rs.Cr)
ratio
2004
132.59
9.92
13.37
2005
125.89
11.85
10.62
2006
283.64
10.12
28.03
2007
127.52
28.09
4.54
2008
441.32
28.30
15.59
Analysis:The interest coverage ratio of the firm for 2004 is 13.37 after the
year it decraesed to 10.62 in the year 2005. Again it increased to 28.03 later years it
decreased to 4.54 & it finally reached to 15.59.
33
The graph between Years and Interest coverage ratio shows as below
25
20
15
Interest coverage ratio
10
0
2004
2005
2006
2007
2008
years
Interpretation:-
The interest coverage ratio of higher ratio is desirable.the analysis indicates that
the firm using debt in conservatively.It is higher in the year 2006 i.e.28.03, it is low in the
year 2007 i.e.4.54.
34
This is the ratio which expressing the basic relationship between debt and equity.
Calculating the ratio of Net assets to Net worth can find this ratio.
Capital employed
Capital equity ratio =
Net worth
years
Capital employed
Net worth
(in.Rs.Cr)
(in.Rs.Cr)
2004
435.34
435.34
1.00
2005
482.82
482.83
0.99
2006
597.86
597.86
1.00
2007
930.78
878.12
1.06
2008
1323.40
1228.40
1.08
Analysis:Capital equity ratio of the firm for 2004 to 2008 are 1, 0.99, 1, 1.03, 1.08.it is
decreased from 2004 to 2005 after the years it raised to 1.08.
35
The graph between Years and Capital equity ratios ratio shows as below
1.06
1.04
1.02
CAPITAL EQUITY RATIO
1
0.98
0.96
0.94
2004
2005
2006
2007
2008
YEARS
Iterpretation:-
The funds being contributed by the lenders and owners for each rupee is almost
i.e. Rs.1/-.It indicates that the firm maintained the constant capital and equity in the equal
proportion change.
36
Debtors turnover ratio can be calculated by dividing total sales by dividing debtors.
Sales
Debtors turn over =
Debtors
years
Sales
Debtors
Debtors turnover
ratio
2004
711.50
276.21
2.58times
2005
922.34
217.42
4.24times
2006
1197.14
412.72
2.90times
2007
2753.22
792.02
3.48times
2008
3604.7
1057.40
3.41times
Analysis:Debtors turnover ratio for the years 2004, 2005, 2006, 2007 and 2008 are 2.58,
4.24, 2.90, 3.48 and 3.41 respectively. It is raised to 4.24 for the year 2005 after it
decreased to 3.41 in the year 2008.
37
The graph between Years and Debtors turnover ratios shows as below
CURRENT RATIO
3
2.5
DEBTORS TURNOVER
RATIO
2
1.5
1
0.5
0
2004
2005
2006
2007
2008
YEARS
Interpretation:The ratios are more than 2, this indicates the firm is good at the management of
credit. It is high in the year 2005 and least in the year 2004. The firm maintained
conversion of the debtors funds to sales is sufficiently.
38
This ratio shows the firms ability in ngenerating sales from all financial resources
committed ton total assets.
Sales
Total assets turnover=
Total assets
years
sales
Total assets
2004
711.50
435.34
1.63
2005
922.34
482.82
1.91
2006
1197.14
597.86
2.00
2007
2753.22
930.78
2.96
2008
3604.7
1323.40
2.72
Analysis:Total assets turnover ratio of the year 2004 to 2008 are 1.63, 1.91, 2.00, 2.96 and
2.72 times respectively.it is gradually increased year by year.
39
The graph between Years and total assets turnover ratio shows as below
2.5
2
TOTAL ASSETS TURNOVER
RATIO
1.5
0.5
0
2004
2005
2006
2007
2008
YEARS
Interpretaion:The total assets turnover ratio of the firm are 1.63, 1.91, 2, 2.96 and 2.72 times it
implies that the firm generate a sales more than one for one rupee investment on total
assets.
40
Fixed assets turnover ratio can be calculated by dividing of sales with net fixed
assets.
Sales
Fixed assets turn over ratio=
Net fixed assets
Years
sales
Fixed assets
turnover ratio
2004
711.50
133.24
5.34
2005
922.34
170.05
5.42
2006
1197.14
156.79
7.64
2007
2753.22
247.03
11.15
2008
3604.7
290.9
12.39
Analysis:The fixed assets turnover ratios for 2004 to 2008 are 5.34, 5.42, 7.64, 11.15 and
12.39 times respectively. It was increased from 2004 to2008.
41
The graph between Years and Fixed assets turnover ratio shows as below
12
10
0
2004
2005
2006
2007
2008
YEARS
Interpretation:Increasing fixed assets turnover ratio implies that the firms utilization of fixed
assets is increased.
42
Current assets turnover ratio can be calculated by dividing of sales with net
current assets.
Sales
Current assets turnover ratio=
Net current assets
Years
sales
Current assets
turnover ratio
2004
711.50
209.01
3.40
2005
922.34
190.79
4.83
2006
1197.14
126.99
9.42
2007
2753.22
345.89
7.96
2008
3604.7
595.40
6.05
Analysis:The current assets turnover ratios for the years from 2004 to 2008 are 3.40, 4.83,
9.42, 7.96 and 6.05 times.
43
The graph between Years and current assets turnover ratio shows as below
5
Current assets turnover ratio
4
0
2004
2005
2006
2007
2008
YEARS
Interpretation:-
It is increased from 2004 to 2006 and then decreased to 6.05 times for the year
2008.it indicates that the usage of current assets is more than its investments.
44
8. Gross profit ratio:This ratio expresses relationship between gross profit and net sales. It relates the
efficiency with which management produces each unit of product. It indicates the degree
to which the selling price of goods per unit may decline without resulting in losses from
operations to the firm.
The first profitability ratio n relation to sales is the gross profit ratio it is
calculated by dividing the gross profit by sales.
Gross profit
Gross profit ratio =
X 100
Sales
Gross Profit
Sales
(in.Rs.Cr)
(in.Rs.Cr)
(%)
2004
655.38
711.50
92.11
2005
819.88
922.34
88.89
2006
994.86
1197.14
83.10
2007
2178.53
2753.22
79.12
2008
2887.40
3604.7
80.11
Analysis:
The calculated gross profit ratio indicates that the proportion of gross profit to
sales shows decreased figures from year 2004 i.e. 92.11 to79.12 in the year 2007 later
year it increased to 80.11
45
The graph between Years and Gross profit ratio shows as below
90
85
Series1
80
75
70
2004
2005
2006
2007
2008
year
Interpretation:
Gross profit ratio of the firm is highest in the year 2004 is 92.11% it indicates that
firm got more sales for attaining more profit. Firms performance is good in the year 2008
i.e. 80.11%.
46
Net profit ratio is obtained when operating expenses; interest and taxes subtracted
from the gross profit. Net profit ratio helps in determining efficiency with which affairs
of the business are being managed. This ratio is the overall measure of the firms ability
to turn each rupee sales into net profit. The ratio is thus an effective measure to check the
profitability of business.
The net profit margin ratio is measured by dividing profit
after tax by sales.
100
Net sales
Years
Net Sales
(in.Rs.Cr)
(in.Rs.Cr)
2004
94.13
711.50
13.23%
2005
71.09
922.34
7.71%
2006
220.12
1197.14
18.39%
2007
65.23
2753.22
2.37%
2008
325.70
3604.7
9.04%
Analysis:Net profit margin ratio for the years from 2004 to 2008 are 13.25%, 7.71%,
18.39%, 2.37% and 9.04%.it is highest in the year 2006 i.e. 18.39% and the least in the
year 2007 i.e. 2.37%.
47
The graph between Years and Net profit ratio shows as below
16.00%
14.00%
12.00%
10.00%
Net profit margin
8.00%
6.00%
4.00%
2.00%
0.00%
2004
2005
2006
2007
2008
YEARS
Interpretation:-
Through this ratio overall profitability can be measured after adjusting nonoperating income & non-operating expenses. Firm showing best performance in the year
2006.in the year 2008 it is good.
48
FINDINGS
Firm maintained liquidity ratio indicates that it is in standards in the years 2004 &
2005. In the next years it is below the standards.
Turnover ratios indicate that the firm is in good at conversion assets to sales.
Current assets turnover is very high when compare to the fixed assets turnover.
Gross profit is high in the years 2004 after the years firm gets fluctuations finally
it is in good position.
In the 2004 & 2005 years it is having more operating expenses than to sales it is
well for next years.
49
CONCLUSION
50
SUGGESTIONS
Because of being a soft solutions JK TYRE ltd need to raise their turnovers to get
good impression on the maintenance.
Returns are of below 25% there is necessary to increase it. By getting more
projects it will happens.
Although the earnings on each share is good payment to the share holders is below
50%.it is better to maintain 50% to 75%, it will helps attracting share holders
towards invest.
51
BIBLIOGRAPHY
REFFERED BOOKS
INTERNET SITE
www.ercap.org
www.wikipedia.com
www.nwda.gov.in
52
Mar '13
Investment Valuation Ratios
Face Value
10.00
Dividend Per Share
3.50
Operating Profit Per Share (Rs)
118.70
Net Operating Profit Per Share (Rs) 1,288.69
Free Reserves Per Share (Rs)
-Bonus in Equity Capital
0.09
Profitability Ratios
Operating Profit Margin(%)
9.21
Profit Before Interest And Tax
7.06
Margin(%)
Gross Profit Margin(%)
7.08
Cash Profit Margin(%)
4.69
Adjusted Cash Margin(%)
4.69
Net Profit Margin(%)
1.98
Adjusted Net Profit Margin(%)
1.98
Return On Capital Employed(%)
13.09
Return On Net Worth(%)
14.22
Adjusted Return on Net Worth(%)
18.39
Return on Assets Excluding
180.70
Revaluations
Return on Assets Including
180.70
Revaluations
Return on Long Term Funds(%)
20.70
Liquidity And Solvency Ratios
Current Ratio
0.60
Quick Ratio
0.84
Debt Equity Ratio
2.99
Long Term Debt Equity Ratio
1.52
Debt Coverage Ratios
Interest Cover
1.88
Total Debt to Owners Fund
2.99
Financial Charges Coverage Ratio
2.42
Financial Charges Coverage Ratio
2.06
Post Tax
Management Efficiency Ratios
Inventory Turnover Ratio
7.41
Debtors Turnover Ratio
5.93
Investments Turnover Ratio
7.41
Fixed Assets Turnover Ratio
1.43
Total Assets Turnover Ratio
1.79
Asset Turnover Ratio
1.99
Average Raw Material Holding
-Average Finished Goods Held
-Number of Days In Working Capital 36.02
Profit & Loss Account Ratios
Material Cost Composition
74.87
Imported Composition of Raw
37.64
Mar '12
Mar '11
Mar '10
Mar '09
10.00
2.50
68.12
1,375.10
141.64
0.09
10.00
3.00
81.40
1,168.60
141.79
0.09
10.00
3.50
117.50
895.56
130.02
0.09
10.00
2.70
92.93
1,201.70
93.27
0.09
4.95
6.96
13.12
7.73
3.15
4.55
10.09
4.70
3.15
1.96
1.96
0.19
0.19
7.74
1.64
1.42
4.57
3.15
3.15
1.27
1.27
11.99
8.57
5.27
10.14
6.87
6.87
4.42
4.42
24.84
23.57
20.11
4.72
2.76
2.76
0.38
0.38
14.94
3.33
-2.86
163.32
174.07
168.88
138.97
163.32
174.07
168.88
138.97
10.99
19.92
30.48
21.94
0.63
0.68
2.50
1.47
0.64
0.69
1.84
0.71
0.79
0.61
1.24
0.83
0.60
0.72
1.91
0.98
1.07
2.50
1.66
2.49
1.84
2.04
4.17
1.24
3.05
1.55
1.91
1.65
1.66
2.00
2.69
1.71
9.78
7.14
9.78
2.04
2.41
2.58
29.89
15.58
7.41
7.91
7.99
7.91
1.76
2.37
2.68
29.11
26.62
28.87
9.11
7.91
9.11
1.44
2.38
2.28
39.19
18.69
-2.10
14.03
11.24
14.03
2.18
2.95
-20.71
27.88
19.00
74.61
33.22
77.93
28.84
63.38
34.21
70.44
33.56
53
Materials Consumed
Selling Distribution Cost
Composition
Expenses as Composition of Total
Sales
Cash Flow Indicator Ratios
Dividend Payout Ratio Net Profit
Dividend Payout Ratio Cash Profit
Earning Retention Ratio
Cash Earning Retention Ratio
AdjustedCash Flow Times
--
3.63
7.21
8.03
7.24
16.34
10.54
8.86
9.82
15.24
15.92
7.70
87.69
93.26
8.91
93.27
9.12
-7.32
90.76
15.12
20.09
7.00
67.35
91.91
8.66
10.25
6.02
87.99
93.41
3.38
68.08
7.52
179.42
90.54
8.04
Mar '13
Mar '12
Mar '11
Mar '10
Mar '09
25.70
180.70
2.68
163.32
14.93
174.07
39.81
168.88
4.64
140.24
54