3M India Ltd.

Analysis of Financial Report 2007-2011

Submitted By: Nimit Bhatia (2010135)

Table of Contents
INTRODUCTION_____________________________________________________________________________ 3 MANAGEMENT DISCUSSION AND ANALYSIS _____________________________________________________ 5 MACRO ENVIRONMENT FACTORS _________________________________________________________________ 5 PERFORMANCE OF MAJOR FIRM FUNCTIONS OVER THE PERIOD _____________________________________________ 5 DOMESTIC AND INTERNATIONAL CHALLENGES ________________________________________________________ 6 RISK MANAGEMENT __________________________________________________________________________ 7 BALANCE SHEET ANALYSIS ____________________________________________________________________ 8 FINANCIAL INSTRUMENTS USED FOR INVESTMENT/LENDING FOR LESS THAN A YEAR (SHORT-TERM) _____________________ 8 FUND FLOW STATEMENT _____________________________________________________________________ 9 PROFIT/ LOSS ACCOUNT STATEMENT ANALYSIS _________________________________________________ 10 FINANCIAL INSTRUMENTS TO BE COMMENTED ON ______________________________________________ 11 GOVERNMENT SECURITIES_____________________________________________________________________ 11 UNQUOTED SHARES _________________________________________________________________________ 12 APPENDIX ________________________________________________________________________________ 14 MANAGEMENT DISCUSSIONS ___________________________________________________________________ 14 INDUSTRY STRUCTURE AND DEVELOPMENTS: _______________________________________________ 14 OPPORTUNITIES AND THREATS: __________________________________________________________ 14 SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE: _________________________________________ 14 INDUSTRIAL AND TRANSPORTATION BUSINESS:______________________________________________ 14 HEALTH CARE BUSINESS: ________________________________________________________________ 15 SAFETY, SECURITY AND PROTECTION SERVICES BUSINESS: _____________________________________ 16 CONSUMER AND OFFICE BUSINESS: _______________________________________________________ 16 DISPLAY AND GRAPHICS BUSINESS: ________________________________________________________ 17 RISK AND INTERNAL CONTROL SYSTEMS ADEQUACY: _________________________________________ 18 BALANCE SHEET____________________________________________________________________________ 20

Introduction
3M India Ltd was incorporated in the year 1987 with the name Birla 3M Ltd. The company was changed into a public limited company in April 1989. In February 1990, they inaugurated Customer Tech Centre in Bangalore. In the year 1994, the company opened Customer Sales Centre at Chennai, Kolkata and Bangalore. In November 1995, they opened a new warehouse in Bangalore.

In February 1996, the company inaugurated Graphics Production Centre. Also, they opened new warehouse in Mumbai. In December 1996, they opened their second Customer Sales Centre in Bangalore. In the year 1997, they opened a warehouse in Chennai. In the year 1998, the company opened the new Customer Sales Centre with expanded facilities at Delhi. Also, they inaugurated Innovation Center at Bangalore.

In June 2000, the company acquired the business of Autostriping India, which develops and produces graphics for two wheelers and the company also inaugurated the centralized Corporate Office. In December 2002, the company name was changed to 3M India Ltd.

In the year 2004, the company inaugurated a Manufacturing Facility for Corrosion Protection Products in Ahmedabad, Gujarat. In the year 2006, they acquired Mahindra Engineering & Chemical Products Ltd. In October 2007, they acquired Macroworx Media Pvt Ltd.

The company executed of new manufacturing plant at Pune in Maharashtra and expanded the manufacturing facility at Ahmedabad in Gujarat. In the year 2008, the company increased the production capacity of Self Adhesive Labels from 40,000,000 Nos to 50,000,000 Nos. The company is in process of establishing a new R&D facility in Bangalore to develop products for local markets. The new facility in India is expected to be completed by the fourth quarter of 2010

3M India Limited is a diversified manufacturer, technology innovator and marketer of a wide variety of products. Our product range has applications for diverse markets in India, viz. Construction, Transportation, Hospitals, General Industry, Aerospace, Railways, Highways, Defense, Security, Mining, Health, Oil & Gas, Telecom, Marine, Homes to name a few. 3M India manages its operations in five business segments: Industrial and Transportation Business; Health Care Business; Safety, Security and Protection Services Business;

Consumer and Office Business; Display and Graphics Business. 3M's five business segments bring together common or related 3M technologies that enhance the development of innovative products and service. During the period under review, your Company made certain business segment realignments that included product moves between business segments and reporting changes.

Management Discussion and Analysis

As is usual, the Company faces normal market competition in all its businesses, from Indian as well as international companies. 3M's globally competitive cost positions and well-crafted business strategies have enabled it to retain its leading market positions. Your Company strongly believes in the 3MT brand equity and its ability to provide its customers with innovative solutions.

The Industrial and Transportation Business Segment serves a broad range of markets, such as general industry, appliances, paper and packaging, food and beverage, electronics, automotive Original Equipment Manufacturer (OEM), automotive aftermarkets (auto body shops and retail) to name a few. Our Industrial and Transportation business has products that include tapes, a wide variety of coated and non-woven abrasives, adhesives, specialty materials, components and products that are used in the manufacture, repair

Macro Environment factors

Though the period January 1, 2009 to December 31, 2009 has been challenging with a significant slowdown, the Company maintained top line at the same level during this period last year, as a result of operational excellence, our localization efforts, our focus on

innovative R&D and working closely with our customers to provide solutions that meet their specific requirement. Inflation, exchange fluctuations and general slowdown

continued to put tremendous pressure on our overall margins.

Performance of major firm functions over the period

Other key parameters: Growth in sales is attributed to market share and new product introductions. gains, account penetration, organic growth

Continuous development and implementation of like

specific programs focused on markets metal fabrication, stainless

construction components, automotive, auto-parts,

steel, and energy. Focus on both the OEM and the aftermarket segments of the automotive industry to leverage the high growth that this industry is currently experiencing.

Growth in sales was achieved by a change in product mix and with the introduction of new products.

Various new oil and gas pipeline projects helped in the growth of the corrosion protection products division. Products from the corrosion protection plant at Ahmedabad, which support the pipeline manufacturing industry, were introduced with a dual layer of coating that provided significant benefits to our customers, both in terms of cost, performance and productivity.

The Home Care and Office Supplies Division achieved growth by expanding their geographical reach and their product range. The expansion of the Modern Trade in tier A / smaller cities also helped 3M India to in achieve higher growth levels. Continuing investment in brand building contributed to increased penetration of a large range of products for the Home Care Division. With the economy reviving, there was increased business of the stationery range.

Domestic and International Challenges

3M was chosen as the leading supplier of reflective products to leading commercial vehicle manufacturers. Launched two successful 'locally developed' products namely, aluminium backed flexible prismatic sheeting for curved surfaces & median markers. Extended scope of brand owner services of commercial graphics. Strengthened position as a leading supplier of fleet graphics. Launched a range of digital printing media for short-term promotional graphics applications. Increased penetration in the construction interior markets. Continued to be a preferred supplier of commercial fascia signage material to several large corporate organizations, banking and financial institutions.

Risk Management
The Company's internal control systems are aligned well with the nature of its business and the size and complexity of its operations. These are time tested and certified by internal auditors and covers all the plants, offices and keys areas of business. These are routinely tested and reviewed by Internal Auditors and cover all the offices, factories and key areas of business segments. Significant audit observations and follow up actions thereon are reported to the Audit Committee. The Audit Committee periodically reviews the audit plans, audit observations of both internal and external audits and adequacy of internal controls.

Balance Sheet Analysis

Financial instruments used for investment/lending for less than a year (short-term)
The unique thing about the company is that there are no investments done by the company over the period. This means that the company has optimally used its funds internally to satisfy its capital expenditure. Pecking order theory of capital structure states that firms have a preferred hierarchy for financing decisions. The highest preference is to use internal financing (retained earnings and the effects of depreciation) before resorting to any form of external funds. Internal funds incur no flotation costs and require no additional disclosure of proprietary financial information that could lead to more severe market discipline and a possible loss of competitive advantage. If a firm must use external funds, the preference is to use the following order of financing sources: debt, convertible securities, preferred stock, and common stock. (Myers, 1984) This order reflects the motivations of the financial manager to retain control of the firm (since only common stock has a voice in management), reduce the agency costs of equity, and avoid the seemingly inevitable negative market reaction to an announcement of a new equity issue.

FUND FLOW STATEMENT

(Rs in Crs) Year Sources of funds Cash profit Increase in equity Increase in other networth Increase in loan funds Decrease in gross block Decrease in investments Decrease in working capital Others Total Inflow Application of funds Cash loss Decrease in networth Decrease in loan funds Increase in gross block Increase in investments Increase in working capital Dividend Others Total Outflow 0 0 0 102.24 0 25.49 0 0 127.73 0 0 0 49.26 0 55.14 0 0 104.4 0 0.01 0 52.55 0 11.55 0 0 64.11 0 1.2 0 58.99 0 13.38 0 0 73.57 0 0 0 21.44 0 35.43 0 0 56.87 0 0 0 2.68 0 41.22 0 0.28 44.18 Mar11 Mar10 Dec08 Dec07 Dec06 Dec05

115.6 0 0 12.13 0 0 0 0 127.73

104.4 0 0 0 0 0 0 0 104.4

64.11 0 0 0 0 0 0 0 64.11

73.57 0 0 0 0 0 0 0 73.57

56.87 0 0 0 0 0 0 0 56.87

44.18 0 0 0 0 0 0 0 44.18

As seen above the fund flow statement of the company, the sources of funds have mainly been the previous year profits; the company follows a policy of not taking funds from other sources. They are not listed on the stock exchange, in need they go to the institutional investors for the sources of funds. They have been making incremental profits each year which have been used for the operational and growth activities of the company.

Profit/ Loss Account Statement Analysis

As per the P/L statement there are no financial expenses incurred to the company. One of the reason for no expense is because of no financial instruments used by the company for the investments. The company has very optimally used pecking order theory to utilize its internal funds for future cash flows and capital expenditure thus decreasing their financial slack to 0.

Financial Instruments to be commented on

Government Securities
A Government security is a tradable instrument issued by the Central Government or the State Governments. It acknowledges the Governments debt obligation. Such securities are short term (usually called treasury bills, with original maturities of less than one year) or long term (usually called Government bonds or dated securities with original maturity of one year or more). In India, the Central Government issues both, treasury bills and bonds or dated securities while the State Governments issue only bonds or dated securities, which are called the State Development Loans (SDLs). Government securities carry practically no risk of default and, hence, are called risk-free gilt-edged instruments. Government of India also issues savings instruments (Savings Bonds, National Saving Certificates (NSCs), etc.) or special securities (oil bonds, Food Corporation of India bonds, fertiliser bonds, power bonds, etc.). They are, usually not fully tradable and are, therefore, not eligible to be SLR securities.

Why a Government Security Holding of cash in excess of the day-to-day needs of a bank does not give any return to it. Investment in gold has attendant problems in regard to appraising its purity, valuation, safe custody, etc. Investing in Government securities has the following advantages:

Besides providing a return in the form of coupons (interest), Government securities offer the maximum safety as they carry the Sovereigns commitment for payment of interest and repayment of principal.

They can be held in book entry, i.e., dematerialized/ scripless form, thus, obviating the need for safekeeping.

Government securities are available in a wide range of maturities from 91 days to as long as 30 years to suit the duration of a bank's liabilities.

Government securities can be sold easily in the secondary market to meet cash requirements.

Government securities can also be used as collateral to borrow funds in the repo market. The settlement system for trading in Government securities, which is based on Delivery versus Payment (DvP), is a very simple, safe and efficient system of settlement. The DvP mechanism ensures transfer of securities by the seller of securities simultaneously with transfer of funds from the buyer of the securities, thereby mitigating the settlement risk.

Government security prices are readily available due to a liquid and active secondary market and a transparent price dissemination mechanism.

Besides banks, insurance companies and other large investors, smaller investors like Cooperative banks, Regional Rural Banks, Provident Funds are also required to hold Government securities as indicated below:

Unquoted Shares
Unquoted company investments can be tremendously rewarding, as wealthy venture capitalists will testify. But as an equity investor, I don't recognise any difference between them and the stock market. You are trying to identify sound businesses with capable, trustworthy managers, where the price you pay for shares is at least fair and preferably at a discount. Fine, but many of the prospectuses in circulation to private investors involve early-stage companies. That is a good for the economy when institutional money tends to focus on lowerrisk management buyouts. But you need to consider whether the risks are worthwhile. To mitigate the risks, successive governments have offered tax breaks, partly because "small business" is seen as a vote winner. Do you remember the 1980s Business Expansion Scheme (BES) and the many promotions from Johnson Fry? The current temptation is the Enterprise Investment Scheme, which is particularly attractive for higher-rate taxpayers. Twenty per cent of the amount invested can be deducted from your income-tax bill in the year you invested and there is no capital gains tax (CGT), provided you hold the shares for at least three years. There is also deferral relief where tax on gains from an asset sale can be postponed by investing in one or more EIS-qualifying companies. In principle, you could become a serial investor in EIS companies to avoid tax. In practice, enough hard-bitten BES investors will empathise with my point that you must try not to lose all your money along the way. Never let the "tax tail" wag the dog. Your investment decisions should be driven by the calibre of the business and its management, plus the price in relation to value. Evaluating unquoted plays needs to be seen in the context of what opportunities you are ceding in quoted shares. Weighing up all this, it may be better to pay 40 per cent CGT (or lower if you are entitled to taper relief).

Liquidity is another factor affecting the decision whether the tax breaks compensate you adequately for the risks of holding an unquoted share. The highest risk is being a minority shareholder in a private company likely to remain so, which means you have little influence. A friend's retirement became frustrating as a result of backing a private company whose management let him down, then he got into a legal tangle criticising them. Life is too short for unnecessary stress. This risk is reduced by venture capital networks such as Hotbed (see www.hotbed.uk.com) which screen potential investments and tend to play a role in choosing directors - for a strategy that prioritises a business sale or flotation. You pay an annual fee for membership of such a network, which is well-suited to busy, higher-rate taxpayers. Hotbed employs ex-3i executives and is as good as any similar network. Lucius Cary, one of the pioneers of UK venture capital networks, has also developed venture capital trusts (VCTs). His focus is on early-stage technology companies in the Oxford area (see

www.oxfordtechnology.com). VCTs have been promoted heavily to private investors and diversification makes sense, at least in principle. Forgive my cynical view that out of, say, 30 companies in a trust, 20 may go nowhere at all, five will prove winners and five will go bust. I prefer individual company selection. What bugs me is how the initial income tax relief has recently been increased to 40 per cent for VCT investors. Admittedly, CGT deferral relief was lost, but those who invest directly in unquoted companies take on higher risks - the tax breaks should at least be equal. Recent figures for VCT performance are not encouraging. Trustnet claims an average annual loss of 2.7 per cent over the past five years. This contrasts with estimates by the British Venture Capital Association and PricewaterhouseCoopers of an annual return of 9 per cent, against 1.9 per cent for total UK pension fund assets including equities, bonds and cash. (That 1.9 per cent figure underlines that it was a good decision to start a self-invested pension!) To be fair, some VCT managers have achieved success. For example Teather & Greenwood, which focused on nurseries. BES investors may recall that the key to success in those schemes, from 1984, was often a good business with asset backing. Even so, long-term BES investors in pubs group SFI, who made and lost fortunes, know that it is vital to know when to sell!

Appendix
Management Discussions
INDUSTRY STRUCTURE AND DEVELOPMENTS:

The global economic crisis that began in the latter part of

the

calendar year

2008,

significantly impacted economic growth. The Indian Government took action and managed the situation effectively, through a combination of financial stimulus packages and strong economic policies.

Though the period January 1, 2009 to December 31, 2009 has been challenging with a significant slowdown, the Company maintained top line at the same level during this period last year, as a result of operational excellence, our localization efforts, our focus on

innovative R&D and working closely with our customers to provide solutions that meet their specific requirement. Inflation, exchange fluctuations and general slowdown

continued to put tremendous pressure on our overall margins.

Increase in industrial production in the last quarter of the calendar year 2009 and projected GDP growth in 2010-11 are signs of improvement in the Indian economy.

OPPORTUNITIES AND THREATS:

As is usual, the Company faces normal market competition in all its businesses, from Indian as well as international companies. 3M's globally competitive cost positions and well-crafted business strategies have enabled it to retain its leading market positions. The Company strongly believes in the 3MT brand equity and its ability to provide its customers with innovative solutions.

SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE:

Growth in respect of each of the business segments of the Company refers to a period of 15 months over the base of 12 months.

INDUSTRIAL AND TRANSPORTATION BUSINESS:

The Industrial and Transportation Business Segment serves a broad range of markets, such as general industry, appliances, paper and packaging, food and beverage, electronics, automotive Original Equipment Manufacturer (OEM), automotive aftermarkets (auto body

shops and retail) to name a few. Our Industrial and Transportation business has products that include tapes, a wide variety of coated and non-woven abrasives, adhesives, specialty materials, components and products that are used in the manufacture, repair and maintenance of automotive, marine, aircraft and specialty vehicles. Major products under this segment include vinyl, polyester, foil and specialty industrial tapes and adhesives; Scotchr Masking Tape, Scotchr Filament Tape and Scotchr Packaging Tape; Functional and Decorative Graphics; Abrasion-Resistant Films, Masking Tapes and Other Specialty Materials.

Growth in sales is attributed to market share and new product introductions.

gains, account penetration, organic growth

Continuous development and implementation of like

specific programs focused on markets metal fabrication, stainless

construction components, automotive, auto-parts,

steel, and energy. Focus on both the OEM and the aftermarket segments of the automotive industry to leverage the high growth that this industry is currently experiencing.

Growth in sales was achieved by a change in product mix and with the introduction of new products.

HEALTH CARE BUSINESS:

Our Health Care business segment serves markets that include hospitals & clinics, dental & orthodontic practitioners, processed food manufacturers and pharmaceutical companies. The product range includes medical & surgical supplies, medical devices, skin and wound care & infection prevention products, drug delivery systems, dental & orthodontic products and food safety products.

Continued focus and efforts on knowledge transfer and sharing with customers. This was SA-ieved through successful Indian and international KOL speaker programs and seminars etc. Continued value enhancement for customers through expansion of new initiatives like critical care nurses club and operating room nurses club across the country. High growth achieved in products like Handrubr, LittmannT Stethoscopes, and Lavar crowns. New product sales were ahead of the plan.

Expansion into the dental lab and digital markets with the installation of scanners across the country. Developed local manufacturing capability and local product development lab for medical products.

SAFETY, SECURITY AND PROTECTION SERVICES BUSINESS:

Our Safety, Security and Protection Services business segment serves a broad range of markets that increase the safety, security & productivity of workers, facilities and systems. Major product offerings include personal protection products, brand asset protection

solutions, border control products, passive fire protection products for industries & commercial establishments, track & trace products, cleaning & hygiene products for the hospitality industry.

Highlights - Various new oil and gas pipeline projects helped in the growth of the corrosion protection products division. Products from the corrosion protection plant at Ahmedabad, which support the pipeline manufacturing industry, were introduced with a dual layer of coating that provided significant performance and productivity. benefits to our customers, both in terms of cost,

Continued investment in infrastructure and in many such industries lead to an enhanced need for personal protection equipment. Demand for N95 respirators increased during the H1N1 crisis.

Due to the economic crisis, Hospitality, IT and IT enabled companies were impacted severely and this had an impact on the demand for our track and trace, security and protection businesses.

CONSUMER AND OFFICE BUSINESS:

Our Consumer and Office business segment serves markets that include consumer retail & office retail. Products in this segment include office supply products, stationery products and home care products. The major brands in this segment are - Scotchr brand products, such as Scotchr MagicT Tape, Scotchr Glue Stick ; Post-itr Brand products, such as Post-itr Flags,

Post-itr Note Pads, and Post-itr Pop-up Notes and Dispensers and home care products; under the Scotch-Briter brand, that include the Scotchbriter Scour Pads, Scotch-Briter Scrub Sponges, Scotch-BriteT Floor Cleaning range.

The Home Care and Office Supplies Division achieved growth by expanding their geographical reach and their product range. The expansion of the Modern Trade in tier A / smaller cities also helped 3M India to in achieve higher growth levels. Continuing investment in brand building contributed to increased penetration of a large range of products for the Home Care Division. With the economy reviving, there was increased business of the stationery range.

DISPLAY AND GRAPHICS BUSINESS:

Our Display and Graphics business segment serves markets that include traffic safety, commercial graphics, construction & electronic display markets. In Traffic Safety, 3M provides reflective sheetings used for highway signs, vehicle license plates, construction work-zone devices, trucks and other vehicles and also provides median marking and pavement marking systems. Major Commercial Graphics products include films, inks, digital signage systems and related products used to create static & dynamic graphics for retail signs, retail & construction interiors, buildings & vehicles. In the electronic display market, 3M offers projection systems & computer screen privacy filters.

Highlights 3M was chosen as the leading supplier of reflective products to leading commercial vehicle manufacturers. Launched two successful 'locally developed' products namely, aluminium backed flexible prismatic sheeting for curved surfaces & median markers. Extended scope of brand owner services of commercial graphics. Strengthened position as a leading supplier of fleet graphics. Launched a range of digital printing media for short-term promotional graphics applications. Increased penetration in the construction interior markets.

Continued to be a preferred supplier of commercial fascia signage material to several large corporate organizations, banking and financial institutions.

RISK AND INTERNAL CONTROL SYSTEMS ADEQUACY:

All key functions and divisions of the Company are

independently responsible to

monitor risks associated within their respective areas of operations such as production, supply chain, marketing and others areas like health, safety and environment. Foreign exchange fluctuations may have an impact on the business. The Company has identified various risks and procedures to mitigate the same.

The Company's internal control systems are aligned well with the nature of its business and the size and complexity of its operations. These are time tested and certified by internal auditors and covers all the plants, offices and keys areas of business. These are routinely tested and reviewed by Internal Auditors and cover all the offices, factories and key areas of business segments. Significant audit observations and follow up actions thereon are reported to the Audit Committee. The Audit Committee periodically reviews the audit plans, audit observations of both internal and external audits and adequacy of internal controls.

Balance Sheet
Industry :Trading - Large (Rs in Crs) Year Mar 11 Mar 10 SOURCES OF FUNDS : Share Capital 11.27 Equity Authorised 11.27 11.27 Preference Capital Authorised 0 0 Unclassified Authorised 0 0 Equity Issued Equity Subscribed Equity Called Up Less : Equity Calls in Arrears Equity Forfeited Equity Paid Up Adjustments to equity Preference Capital Paid Up Convertible Preference Share Paid Up Non-convertible Preference Share Paid UP Unclassified Shares Paid Up Reserves Total TOTAL RESERVES EXCLUDING REVALUATION RESERVE Capital Reserves General Reserves Share Premium Investment Allowance Reserve Debenture Redemption Reserve Capital Redemption Reserve Debt Redemption Reserve Amalgamation Reserve Taxation Reserve Exchange Fluctuation Reserve Foreign Exchange Earnings Reserve Exchange Profit / Allowance Reserve 528.13 0 0.32 9.5 0 0 0 0 0 0 0 0 0 11.27 11.27 11.27 0 0 11.27 0 0 0 0 0 528.1 3 429.33 0 0.32 9.5 0 0 0 0 0 0 0 0 0 11.27 11.27 11.27 0 0 11.27 0 0 0 0 0 429.3 3 336.49 0 0.32 9.5 0 0 0 0 0 0 0 0 0

Dec 08 11.27 11.27 0 0 11.27 11.27 11.27 0 0 11.27 0 0 0 0 0 336.49 11.27

Dec 07 11.27 11.27 0 0 11.27 11.27 11.27 0 0 11.27 0 0 0 0 0 279.04 279.04 0 0.33 9.5 0 0 0 0 0 0 0 0 0

Dec 06 11.27 11.27 0 0 11.27 11.27 11.27 0 0 11.27 0 0 0 0 0 212.56 212.56 0.2 0 9.5 0.12 0 0 0 0 0 0 0 0

Deferred Credit Reserve Contingency Reserve Development Rebate Reserve Special Reserve Special Appropriation to Projects Statutory Reserves Reserve for Bad and Doubtful Debt Investment Fluctuation Reserve Profit & Loss Account Balance Other Reserves TOTAL REVALUATION RESERVE Fixed Asset Revaluation Reserve Investment Revaluation Reserve Other Revaluation Reserve Equity Share Warrants Equity Application Money Total Shareholders Funds Secured Loans Convertible Debentures Non Convertible Debentures Partly Convertible Debentures Less : Debentures Calls in arrears Term Loans Institutions Term Loans Banks Term Loans Others Borrowings from Government of India Deferred Credit / Hire Purchase Bridge Loans Cash Credit /Packing Credit / Bills Discounted Working Capital Advances Interest Accured & Due Secured Loans Others Unsecured Loans Debentures / Bonds

0 0 0 0 0 0 0 0 518.31 0 0 0 0 0 0 0 539.4 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 12.13 0

0 0 0 0 0 0 0 0 419.51 0 0 0 0 0 0 0 440.6 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 326.67 0 0 0 0 0 0 0 347.76 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 269.21 0 0 0 0 0 0 0 290.31 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 202.74 0 0 0 0 0 0 0 223.83 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Accrued Interest Loans from Group Cos Loans from Banks Loans from Institutions Advances Loans from GOI / PSUs Deferred Liabilities Deferred Tax Commercial Paper Unsecured Loans Others TOTAL DEPOSITS Fixed Deposits Intercorporate Deposits Security Deposits Directors Deposits Share Deposits Other Deposits Total Debt Total Liabilities APPLICATION OF FUNDS : Gross Block Goodwill Technical Know-how Leasehold Land Freehold Land Railway Sidings Buildings Ponds & Reservoirs Water supply / tubewells Plant and Machinery Ships / Vessels Electrical Installations / Fittings Factory Equipments Furniture and Fixtures Office Equipments Computers Lab and R & D Equipment Medical Equipment and Surgical Instrument Vehicles Transmission and Distribution Equipment

0 0 0 0 0 0 12.13 0 0 0 0 0 0 0 0 0 0 12.13 551.5 3 244.5 4 6 0 4.58 2.28 0 76.25 0 0 118.47 0 0 0 19.98 5.47 5.58 0 0 4.78 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 440.6 203.7 2 6 0 4.58 2.28 0 67.78 0 0 100.51 0 0 0 16.69 0 4.52 0 0 0.3 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 347.76

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 290.31

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 223.83

166.86 6 0 4.58 2.28 0 58.6 0 0 70.59 0 0 0 14.82 0 5.06 0 0 0.3 0 6 0 4.58 2.52 0 27.6 0 0 43.45 0 0 0 6.84 0 9.61 0 0 0.27 0

100.87 6 0 4.58 1.03 0 10.67 0 0 35.34 0 0 0 11.58 0 9.8 0 0 0.37 0

79.37

Wind Turbines Aircraft and Helicopters Other Fixed Assets Less : Accumulated Depreciation Goodwill Technical Know-how Leasehold Land Freehold Land Railway Sidings Buildings Ponds & Reservoirs Water supply / tubewells Plant and Machinery Ships / Vessels Electrical Installations / Fittings Factory Equipments Furniture and Fixtures Office Equipments Computers Lab and R & D Equipment Medical Equipment and Surgical Instrument Vehicles Transmission and Distribution Equipment Wind Turbines Aircraft and Helicopters Other Fixed Assets Less:Impairment of Assets Net Block Lease Adjustment Capital Work in Progress Capital Advances Pre-operative Expenditure Development Expenses Assets in Transit Other Capital Work in Progress Investments Quoted Government Securities Unquoted Government

0 0 1.15 79.22 6 0 0.51 0 0 13.91 0 0 41.58 0 0 0 9.57 1.02 4.53 0 0 1.04 0 0 0 1.06 0 165.3 2 0 101.1 4 6.94 0 0 0 94.2 0 0 0

0 0 1.06 62.42 6 0 0.46 0 0 10.17 0 0 32.33 0 0 0 7.66 0 4.49 0 0 0.25 0 0 0 1.06 0 141.3 0 39.72 25.66 0 0 0 14.06 0 0 0

0 0 4.63 50.86 6 0 0 0 0 5.95 0 0 23.62 0 0 0 5.45 0 4.99 0 0 0.22 0 0 0 4.63 0 116 0 27.32 2.22 0 0 0 25.1 0 0 0

0 0 0 44.21 6 0 0 0 0 3.89 0 0 19.91 0 0 0 4.71 0 9.51 0 0 0.19 0 0 0 0 0 56.66 0 40.76 3.85 0 0 0 36.91 0 0 0

0 0 0 47.53 6 0 0 0 0 5.32 0 0 17.7 0 0 0 8.98 0 9.26 0 0 0.27 0 0 0 0 0 31.84 0 12.48 8.96 0 0 0 3.52 0 0 0

Securities Quoted Equity Unquoted Equity Quoted Debentures/Bonds Unquoted Debentures/Bonds Quoted Units Unquoted Units Preference Shares Joint Venture / Partnerships Application Money Other Investments Less : Prov.for dimunition in value of investment Current Assets, Loans & Advances Inventories Raw Materials Work-in Progress Contract WIP / Site under development Finished Goods Stores and Spares Investment as Stock_in_Trade Stock on hire Packing Materials Goods-in transit Other Inventory Sundry Debtors Debtors more than Six months Debtors Others Less : Provisions for Doubtful Debts Cash and Bank Balance with Bank Term Deposit with Banks Cash in hand / others Loans and Advances Bills Receivable Loans to Subsidiary Loans to Group / Associate Companies 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

158.9 3 48 5.22 0 101.69 0.42 0 0 3.6 0 0 197.6 9 9.88 191.54 3.73 50.74 29.25 20.06 1.43 70.83 0 0 0 0 0 0 21.41 75.06 9.11 8.19 141.5 5.14 40.51 5.3 0 74.76 0.23 0 0 2.31 0 0

123.1 1 41.28 3.02 0 59.79 0.32 0 0 1.56 0 0 144.5 5 6.44 106.52 4.36 105.5 8 26.97 20.42 5.09 47.5 0 0 0

105.97 24.57 1.95 0 13.04 0.42 0 0 1.05 0 26.54 108.6 6.81 83.22 6.31 52.48 17.22 78.76 0.01 61.41 0 0 0

67.57 26.28 1.68 0 11.81 0.08 0 0 1.2 0 25.12 83.72 7.79 62.17 7.34 95.99 18.53 81.11 0.01 49.45 0 0 0

66.17

62.62

99.65

37.38

Loans to Others Deposits with Government Intercorporate Deposits Deposits Others Advance Tax Pre-paid expenses Advances to suppliers Advances for capital goods Advances recoverable in cash or kind Less : Provision for Doubtful Advances Interest Accrued on Investments Application money pending allotment Other Current Assets Total Current Assets Less : Current Liabilities and Provisions Current Liabilities Sundry Creditors Creditors for Goods Creditors for Capital Goods Creditors for Finance Creditors for Others Acceptances Application Money Warrants Application Money Bank Overdraft / Short term credit Advances from Customers / Credit balances Due to Subsidiary / Group Companies Trade and Other deposits Unclaimed Dividend Interest Accrued But Not Due Other Liabilities Provisions Provision for Tax Provision for Corporate Dividend Tax Provision for Gratuity

0 54.1 0 0 4.41 0 0 0 13.25 0.95 0.02 0 0 478.1 9

0 41.13 0 0 0 0 0 0 12.14 6.14 0.37 0 0 420.7 4

0 29.91 0 0 7.06 0 0 0 25.84 1.41 0.01 0 0 328.46

0 18.86 0 0 4.68 0 0 0 26.31 0.8 0.4 0 0 296.73

0 20.59 0 0 2.49 0 0 0 14.68 0.8 0.42 0 0 265.82

188.7 2 169.82 169.82 0 0 0 0 0 0 0 10.52 0 0 0 0 8.38 10.8 0 0 2.44 3.58 0 0.36 133.96 133.96 0 0 0 0 0 0 0 13.16 0 0 0 0 9.01

156.1 3 100.92 100.92 0 0 0 0 0 0 0 8.75 0 0 0 0 7.27 13.29 0 0 2.44

116.94 85.39 85.39 0 0 0 0 0 0 0 7.72 0 0 0 0 7.17 12.2 0 0 0.86

100.28 72.54 72.54 0 0 0 0 0 0 0 7.32 0 0 0 0 3.45 7.89 0 0 1.47

83.31

6.04

Provision for Dividend Proposed Equity Dividend Provision for Contingencies Provision for depreciation in investment Other Provisions Total Current Liabilities Net Current Assets Miscellaneous Expenses not written off Discount on issue of shares Discount on issue of Debentures Preliminary Expenses Deferred revenue expenses Pre-operative/Trial run Expenses Promoter's Expenses Debenture/Share Issue expenses Royalty/Liscense fees/ Technical Knowhow Financial charges / Expenses not written off Other Miscellaneous expenditure not written off Less: Misc.Expenditure written off during the year Deferred Tax Assets Deferred Tax Liability Net Deferred Tax Total Assets Contingent Liabilities Claims not acknowledged as debt Guarantees undertaken Letter of Credit Bills Discounted Disputed Sales Tax Disputed Income Tax Disputed Excise Duty Other Disputed Claims Uncalled Liability on Shares Others

0 0 0 0 8.36 199.5 2 278.6 7 0 0 0 0 0 0 0 0 0 0 0 0 13.29 6.89 6.4 551.5 3 16.11 0 7.51 0 0 0 8.6 0 0 0 0

0 0 0 0 9.33 169.4 2 251.3 2 0 0 0 0 0 0 0 0 0 0 0 0 12.67 4.41 8.26 440.6 15.55 0 6.68 0 0 4.18 4.69 0 0 0 0

0 0 0 0 9.31 129.14 199.32 0 0 0 0 0 0 0 0 0 0 0 0 8.25 3.13 5.12 347.76 13.69 0 2.76 0 0 8.31 2.31 0 0.31 0 0

0 0 0 0 6.93 108.17 188.56 0 0 0 0 0 0 0 0 0 0 0 0 5.85 1.52 4.33 290.31 8.9 0.19 2.1 0.24 0 6.06 0 0 0.31 0 0

0 0 0 0 4.33 89.35 176.47 0 0 0 0 0 0 0 0 0 0 0 0 4.54 1.5 3.04 223.83 7.56 0.19 1.59 2.27 0 3.2 0 0 0.31 0 0

Estimated Capital Contracts Remaining

46.85

18.18

11.75

40.41

17.75

Profit and loss statement

Industry :Trading - Large (Rs in Crs) Year INCOME : Sales Turnover Sales turnover / Operating Income Job Work & Service Income Pool Account Adjustment Other Operating Divisions / Income Discount Received Excise Duty Net Sales Other Income Export Incentives Import Entitlements Dividend Income Interest Income Interest on Applicaiton Money Profit on sale of Fixed Assets Profit on sale of investments Profit on buy-back of share Profit on buy-back of debenture Profit on premature redemption Rent received Lease Rent / Hire Charges received Gain on Cancell. of Forward Contr/forex trans Sale of Scrap Compensation / Reimbursement Income Refunds / Claims Received Income from Subsidiaries 1.73 0 0 2.29 0 0 0 0 0 0 0 0 1,219.04 1,219.04 0 0 0 0 43.48 1,175.56 26.84 0.91 0 0 2.58 0 0 0 0 0 0 0 0 1,117.40 0 0 0 0 30.54 1,086.86 19.93 0.66 0 0 5.07 0 1.22 0 0 0 0 0 0 1,117.40 779.89 0 0 0 0 37.42 742.47 10.59 0 0 0 5.38 0 0 0 0 0 0 0 0 779.89 646.7 0 0 0 0 38.29 608.41 8.5 0 0 0 4.57 0 0 0 0 0 0 0 0 646.7 540.49 0 0 0 0 35.63 504.86 4.82 540.49 Mar 11(12) Mar 10(15) Dec 08(12) Dec 07(12) Dec 06(12)

0 0.36

2.26 0.26

0 0.18

0 0

0 0

0 0 0

0 0 0

0 0 0

0 0 1.11

0 0 0

Fee Income Income from Guarantee Commission Income from Underwriting Commission Other commission Income Income from Leasing Operations Income from Hire Purchase Operations Income from Merchant Banking Operations Income from Bill Discounting Income from Investment Activities Income from Money Market Operations Profit on inter scheme transfer / sale of invest Sale of Power Wheeling Charges received Provision Written Back Miscellaneous Income Stock Adjustments Closing Stock Of WIP Closing Stock of Finished Goods Closing Stock of Other Materials Opening Stock of WIP Opening Stock of Finished Goods Opening Stock of Other Materials Adjustment on amalgamation / trial runs Total Income EXPENDITURE : Raw Materials Opening Stock of Raw Materials Purchases of Raw Material Purchase of Trading Goods Direct Expense on Purchase/Adjustment Closing Stock of Raw Materials Adjustment on amalgamation / trial runs Power & Fuel Cost

6.36 0 0 0 1.3 0

0 0 0 0 1.44 0

0 0 0 0 1.03 0

0 0 0 0 0.17 0

0 0 0 0 0 0

0 0 0

0 0 0

0 0 0

0 0 0

0 0 0

0 0 0 7.41 7.39 27.44 5.22 101.69 0 5.3 74.76 0

0 0 0 0.16 12.32 17.11 5.3 74.76 0 3.02 59.79 0

0 0 0 2.43 0 20.9 3.02 59.79 0 1.95 13.04 26.54

0 0 0 1.84 0 2.93 1.95 13.04 26.54 1.68 11.8 25.12

0 0 0 0.25 0 3.32 1.68 11.8 25.12 2.1 7.98 25.2

0.59 1,229.84

-0.14 1,123.90

-0.38 773.96

0 619.84

0 513

682.63 40.5 379.11 311.02 41.28 311.53 313.85

626.16 24.57 160.26 290.1

433.65 26.28 136.56 190.01

328.28 23.73 131.92 151.54

280.91

0 48

0 40.5

0 41.28

0 24.57

0 26.28

0 7.95

0 7.67

0 5.71

0 4.89

0 3.79

Power, Oil & Fuel Electricity Expenses Water Charges Employee Cost Salaries,Wages & Bonus Contribution to funds Staff Welfare Expenses VRS compensation Gratuity Paid Other Employee Cost Other Manufacturing Expenses Freight Inwards & Transport charges Packing Materials Job Work / Contract / Processing Charges Drilling Operation Charges Stores Consumed Repairs Repairs - Plant & machinery Repairs - Building Repairs - Others Technical fees paid Wheeling charges payable Project / Production Charges Own Film Production Expense Handling, Clearing Charges Coupon Sales, Food, Beverages License Fee / Operation Charges Other Operating Expenses Selling and Administration Expenses Rent,Rates and Taxes paid Wealth Tax Cess Others Sales Tax Lease Rent / Hire Charges paid Insurance Discount paid Advertisement

7.95 0 0 144.06 119.3 14.75 10.01 0 0 0 52.37 0 18.98

7.67 0 0 124.08 106.29 9.42 8.37 0 0 0 43.83 0 14.12

5.71 0 0 92.93 76.92 9.55 6.46 0 0 0 35.14 0 11.13

4.89 0 0 73.77 62.11 6.26 5.4 0 0 0 17.31 0 9.7

3.79 0 0 59.85 49.41 5.09 5.35 0 0 0 13.65 0 6.55

20.25 0 3.86 9.28 4.93 3.05 1.3 0 0 0 0 0 0 0 0 160.49 2.88 0 0 2.88 0 19.08 3.36 0 0

15.9 0 3.8 10.01 4.68 3.62 1.71 0 0 0 0 0 0 0 0 151.04 2.85 0 0 2.85 0 25.07 3.57 0 0

15.04 0 3.01 5.96 2.76 2.02 1.18 0 0 0 0 0 0 0 0 90.87 1.64 0 0 1.64 0 17.68 2.38 0 0

0 0 2.65 4.96 2.34 1.52 1.1 0 0 0 0 0 0 0 0 72.8 1.8 0 0 1.8 0 14.47 1.68 0 0

0 0 3.1 4 2.23 0.98 0.79 0 0 0 0 0 0 0 0 61.73 1.79 0 0 1.79 0 10.18 1.4 0 0

Marketing Expenses Commssion expenses on sales Distribution Expenses Other Selling Expenses Legal Expenses Communication Expenses Travel Expenses Audit Expenses Printing and Stationery Royalty and technical fees Other Fee Expenses Director's Remuneration Other Commission paid R & D Expenses Other Administrative Expenses Miscellaneous Expenses Donations Loss on Sale of Assets Loss on Sale of Investments Loss on revaluation of investments Loss on forex transactions Loss on buy-back of share Loss on buy-back of debenture Bad Debts written off Expenses Ammortised Provision for doubtful loan/ Deposit/ Advances Provision for Contingency Other provisions and write offs Other Miscellaneous Expenses Provision for dimunition in value of investment Less: Pre-operative Expenses Capitalised Raw Material Operating Expenses Administrative & Selling Expenses Employees Cost Others Total Expenditure

0 0.67 3.1 50.06 3.92 1.97 26.21 0.41 0 8.98 34.77 5.08 0 0 0 15.72 0 0.12 0 0 2.3 0 0 3.24 0

0 5.33 1.65 53.72 3.1 3.38 17.88 0.44 0 5.41 24.93 3.71 0 0 0 12.74 0 0.03 0 0 0 0 0 0.99 0

0 6.12 1.2 33.74 1.44 2.81 12.48 0.39 0 0 9.25 1.74 0 0 0 16.93 0 0 0 0 4.08 0 0 1.04 0

0 3.03 1.58 24.25 1.7 2.11 11.15 0.32 0 0 8.44 1.88 0 0.39 0 9.93 0 0.3 0 0 0 0 0 0.86 0

0 2.86 2.72 18.7 2.76 2.12 9.49 0.3 0 0 7.48 1.57 0 0.36 0 8.36 0 0 0 0 0.42 0 0 0.59 0

0.01 0 0 10.05

5.51 0 0 6.21

0.61 0 0 11.2

0 0 0 8.77

0.33 0 0.17 6.85

0 0 0 0 0 0 0 1,063.22

0 0 0 0 0 0 0 965.52

0 0 0 0 0 0 0 675.23

0 0 0 0 0 0 0 506.98

0 0 0 0 0 0 0 428.29

Operating Profit Interest Debenture Interest Fixed Interest Interest on Deposits Interest on External Commercial Borrowings Other Interest Financial Charges Premium on redemption of debentures Less : Interest Capitalised Gross Profit Depreciation Depreciation for the current year Less : On Revalued Assets Lease Adjustment Other Adjustment Profit Before Tax Tax Tax for the current year Adjustment for Previous Year Others Fringe Benefit tax Fringe Benefit Tax for Current Year Adjustment for Previous Year Others Deferred Tax Deferred Tax for Current Year Adjustment for Previous Year Others Reported Net Profit Extraordinary Items Profit/(Loss) on Sale of Assets Profit/(Loss) on Sale of Investment. Income/(Expenses) of prior years Gain / (loss) on foreign exchange transactions Depreciation written back/(Not provided) -0.12 0 0 1.87 0 0 47.39 0 0 17.36 0 0 0 0 0 0

166.62 1.2 0 0 0

158.38 0.56 0 0 0

98.73 0.47 0 0 0

112.86 0.34 0 0 0

84.71 0.28

0 1.2 0

0 0.56 0

0 0.47 0

0 0.34 0

0 0.28 0

0 0 165.42 17.36

0 0 157.82 16.95 16.95 0 0 0 148.06 47.39 50.68 0 0 0 0.49 0.49 0 0 1.87 -3.14 0 0 98.8 -0.08 -0.03 0 0 92.84 -0.02 -3.14 140.87 50.68

0 0 98.26 7.23 7.23 0 0 0 91.03 31.71 31.71 0 0 2.66 2.66 0 0 -0.8 -0.8 0 0 57.46 0.8 1.22 0 0

0 0 112.52 5.89 5.89 0 0 0 106.63 37.53 37.53 0 0 2.09 2.09 0 0 -0.67 -0.67 0 0 67.68 -0.19 -0.3 0 0

0 0 84.43 6.46 6.46 0 0 0 77.97 27.77 28.03 -0.26 0 1.57 1.57 0 0 -1.79 -1.79 0 0 50.42 0 0 0 0

0 0 0

(Depreciation on Revaluation of Assets) VRS Adjustment Miscellaneous Income/Expense Less : Tax on Extra Ordinary Income/Expense Less : Deferred Tax on Extra Ordinary Income/Exp.

0 0 0

0 0 0

0 0 0

0 0 0

0 0 0

0.04

0.01

0.42

0.11

Adjusted Net Profit Adjst. below Net Profit Depreciation provided /[Written back] Prior Year Expenses / (Income) VRS compensation Short/(Excess) provision for tax Other adjustments P & L Balance brought forward Statutory Appropriations Appropriations Appropriation to Capital Redemption Reserve Appropriation to Debenture Redemption Reserve Appropriation to General Reserve Appropriation to Investment Allowance Reserve Appropriation to Other Reserves Prior Year Dividend Paid Provision for Equity Dividend Provision for Preference Dividend Dividend Tax INTERIM DIVIDEND PAID P & L Balance carried down Dividend Preference Dividend Equity Dividend % Earnings Per Share-Unit Curr Earnings Per Share(Adj)-Unit Curr Book Value-Unit Curr

98.88 0 0 0 0 0 0 419.51 0 0 0 0 0 0 0

92.86 0 0 0 0 0 0 326.67 0 0

56.66 0 0 0 0 0 -1.21 269.21 0 0

67.87 -1.21 0 0 0 0 0 202.74 0 0

50.42 0

152.32 0 0

0 0

0 0

0 0

0 0

0 0

0 0 0 0 0 0 0 518.31 0 0 0 87.67

0 0 0 0 0 0 0 419.51 0 0 0 65.9

0 0 0 0 0 0 0 326.67 0 0 0 50.98

0 0 0 0 0 0 0 269.21 0 0 0 60.05

0 0 0 0 0 0 0 202.74 0 0 0 44.74

478.62

390.95

308.57

257.6

198.61

References
1. 2. 3. 4. Capitaline.com: for all the balance sheets and profit and loss statements. 3mindia.co.in Wikipedia.org/3mindia Finance.yahoo.co.in