Financial Accounting for

Managers
Financial Ratio Analysis of
Cholamandalam Finance and
Investment Company

Prepared By: Sanjeev

Kumar

Balance Sheet of Cholamandalam

Balance Sheet of Cholamandalam Finance & Investment
Company
(-----in Rs. Cr.----)
Mar '11

Mar '10

Mar '09

Mar '08

Mar '07

Sources Of Funds
Total Share Capital

119.35

366.47

366.47

52.24

38.01

Equity Share Capital

119.35

66.47

66.47

52.24

38.01

Share Application Money

0.03

Preference Share Capital

300

300

952.64

418.53

414.54

506.39

288.34

Reserves
Revaluation Reserves

Net worth

1,072.02

785

781.01

558.63

326.35

Secured Loans

6,515.91

3,858.30

3,713.34

2,993.89

1,920.57

Unsecured Loans

1,429.38

1,536.19

1,677.67

2,403.68

1,298.27

Total Debt

7,945.29

5,394.49

5,391.01

5,397.57

3,218.84

Total Liabilities

9,017.31

6,179.49

6,172.02

5,956.20

3,545.19

Application Of Funds
Gross Block

70.16

64.1

76.76

78.8

48.91

Less: Acumen. Depreciation

36.99

50.35

42.92

31.21

15.97

Net Block

33.17

13.75

33.84

47.59

32.94

1.83

0.03

1.38

0.7

68.28

219.33

428.73

173.94

78.76

Capital Work in Progress

Investments
Inventories
Sundry Debtors

Cash and Bank Balance

446.24

157.47

135.03

48.27

48.94

Total Current Assets

446.24

157.47

135.03

48.27

48.94

Loans and Advances

9,132.69

5,942.61

5,124.38

5,760.15

3,465.28

587.66

1,422.78

485.4

222.68

9,578.93

6,687.74

6,682.19

6,293.82

3,736.90

Current Liabilities

312.04

317.76

334.9

325.3

162.03

Provisions

352.87

423.6

652.37

242.92

145.99

Fixed Deposits
Total CA, Loans & Advances
Deferred Credit

Total CL & Provisions

Net Current Assets
Miscellaneous Expenses
Total Assets
Contingent Liabilities

664.91

741.36

987.27

568.22

308.02

8,914.02

5,946.38

5,694.92

5,725.60

3,428.88

14.51

7.68

3.91

9,017.30

6,179.49

6,172.00

5,956.19

3,545.19

36.71

19.99

16.19

9.91

6.47

Profit and Loss Statement of

Cholamandalam
Profit & Loss account of Cholamandalam Finance &
Investment Company (..in Rs. Cr)
Mar '11

Mar '10

Mar '09

Mar '08

Mar '07

1,115.20

891.28

407.45

Income (.in Rs cr)

Sales Turnover

1,187.93

Excise Duty
Net Sales
Other Income
Stock Adjustments
Total Income

926.69

1,187.93

926.69

1,115.20

891.28

407.45

-10.09

-70.49

-80.96

-52.8

-17.8

1,177.84

856.2

1,034.24

838.48

389.65

Expenditure (in Rs. Cr..)

Raw Materials

Power & Fuel Cost

Employee Cost

89.69

76.53

83.83

75.15

38.05

Other Manufacturing Expenses

86.77

57.45

84.88

4.04

24.38

144.16

50.99

18.43

307.07

77.48

12

39.09

71.89

483.53

235.84

324.87

169.27

128.37

704.4

690.85

790.33

722.01

279.08

PBDIT

694.31

620.36

709.37

669.21

261.28

Interest

585.69

503.59

594.1

378.34

188.93

PBDT

108.62

116.77

115.27

290.87

72.35

Selling and Admin Expenses

Miscellaneous Expenses
Preoperative Exp Capitalized
Total Expenses
Operating Profit

Depreciation

8.51

15.28

19.53

16.19

5.6

Other Written Off

Profit Before Tax

100.11

101.49

95.74

274.68

66.75

Extra-ordinary items
PBT (Post Extra-ord Items)

100.11

101.49

95.74

274.68

66.75

Tax

37.93

15.92

-25.67

162.07

16.25

Reported Net Profit

62.18

15.42

42.75

59.37

31.02

Total Value Addition

483.53

235.84

324.87

169.26

128.37

Preference Dividend
Equity Dividend
Corporate Dividend Tax

0.39

3.16

17.89

6.64

20.87

15.18

2.97

1.63

3.55

2.58

Per share data (annualized) (in Rs. Cr..)

Shares in issue (lakhs)

1,192.84

664.06

664.05

521.76

379.46

Earning Per Share (Rs)

5.18

1.85

6.44

11.38

8.17

Equity Dividend (%)

15

10

40

40

Cash Flow of Cholamandalam

Cash Flow of Cholamandalam Investment and Finance
Company
Net Profit Before Tax
Net Cash From Operating Activities

Mar '11

Mar '10

Mar '09

Mar '08

Mar '07

100.11

31.33

17.08

90.94

47.27

-3249.03

-1065.07

836.18

-2000.74

-1462.54

Net Cash (used in)/from Investing

Activity

247.51

518.61

-537.18

-259.32

-17.23

Net Cash (used in)/from Financing

Activities

2785.88

3.45

404.34

2358.39

1500.99

Net (decrease)/increase In Cash

and Cash Equivalents

-215.63

-543.01

703.34

98.33

21.22

Opening Cash & Cash Equivalents

307.11

850.12

146.78

48.94

27.72

Closing Cash & Cash Equivalents

91.48

307.11

850.12

147.27

48.94

Financial Ratios:
Investment Ratios
Face Value
Dividend Per Share

Mar '11

Mar '10

Mar '09

Mar '08

Mar '07

10

10

10

10

10

1.5

--

Operating Profit Per Share (Rs)

59.05

93.47

107.17

128.17

68.41

Net Operating Profit Per Share (Rs)

99.59

139.55

167.94

170.82

107.37

--

46.16

43.84

76.63

52.02

0.67

1.2

1.2

1.53

2.1

Free Reserves Per Share (Rs)

Bonus in Equity Capital

Profitability Ratios
Operating Profit Margin(%)
Profit Before Interest And Tax
Margin(%)

Mar '11

Mar '10

Mar '09

Mar '08

Mar '07

59.29

66.97

63.81

75.03

63.71

57.9

65.13

61.76

73.18

62.33

Gross Profit Margin(%)

58.57

65.33

62.06

73.21

19.65

Cash Profit Margin(%)

7.87

11.18

13.26

14.44

8.98

Adjusted Cash Margin(%)

7.87

11.18

13.26

14.44

13.35

Net Profit Margin(%)

5.17

1.65

3.81

6.65

7.61

Adjusted Net Profit Margin(%)

5.17

1.65

3.81

6.65

11.98

Return On Capital Employed(%)

7.87

9.84

11.3

10.96

7.16

Return On Net Worth(%)

5.76

2.52

9.16

10.77

9.5

Adjusted Return on Net Worth(%)

17.64

27.68

20.44

15.13

Return on Assets Excluding

Revaluations

89.87

73.04

70.25

105.59

84.97

Return on Assets Including

Revaluations

89.87

73.04

70.25

105.59

84.97

7.87

13.75

17.9

15.23

8.56

Return on Long Term Funds(%)

Management Efficiency Ratios

Mar '11

Mar '10

Mar '09

Mar '08

Mar '07

Inventory Turnover Ratio

--

--

--

--

--

Debtors Turnover Ratio

--

--

--

--

--

Investments Turnover Ratio

--

--

--

--

--

Fixed Assets Turnover Ratio

--

--

--

--

16.01

Total Assets Turnover Ratio

--

--

--

0.15

0.12

16.93

18.85

17.14

12.25

8.97

--

--

--

--

--

Asset Turnover Ratio

Average Raw Material Holding
Average Finished Goods Held

--

--

--

--

--

2,701.37

2,310.06

1,838.39

2,312.64

3,029.60

Material Cost Composition

--

--

--

--

--

Imported Composition of Raw

Materials Consumed

--

--

--

--

--

Selling Distribution Cost

Composition

--

0.02

0.12

0.6

0.69

Expenses as Composition of Total

Sales

--

--

--

--

--

Number of Days In Working Capital

Profit & Loss Account Ratios

Cash Flow Indicator Ratios

Mar '11

Mar '10

Mar '09

Mar '08

Mar '07

Dividend Payout Ratio Net Profit

33.75

67.42

--

41.12

57.25

Dividend Payout Ratio Cash Profit

29.66

30.01

--

32.31

48.49

Earning Retention Ratio

75.69

90.34

100

78.32

63.63

Cash Earning Retention Ratio

77.88

91.81

100

81.05

67.37

Adjusted Cash Flow Times

83.91

51.87

36.26

41.9

59.15

5.18

1.85

6.44

11.38

8.17

89.87

73.04

72.44

107.07

86

Earnings Per Share

Book Value