Suzlon Final

1

A

PROJECT REPORT

ON

FINANCIAL ANALYSIS

OF

SUZLON ENERGY LTD.

IN PARTIAL FULFILLMENT OF ACADEMIC

REQUIREMENT OF M.B.A (RM)

SEM. I

Academic Year: 2012

SUBMITTED by:-

SUBMITTED TO:-

POOJA THAKKAR

CENTRAL FOR MANAGEMENT STUDIES

Sr.n NAME R.no class

1 BUSA DHYANASH K 2 RM

2 DAVE HEMANT B 5 RM

3 GAUSWAMI ARUN D 9 RM

4 PATEL JIGNESH I 14 RM

2

No. Particular Page No

1. Introduction 4

2. Vision 5

3. Bord of Directors 6

4. Directors report 10

3. Auditors report 15

4. Corporate governance 20

5. Horizontal analysis 26

6. Common size analysis 35

7. Multistep analysis 40

8. Ratio analysis 43

9. Bibliography 67

10. Balance sheet 69

11. Profit & loss a/c 71

12. Finding

13. Conclusion

3

PREFACE

This is a part of studies for the students of management. The analytical knowledge at MBA

(RM) SEM-01 level helps us to know the working problems of industries before we enter into

any organization as an employee or executive. This will help the students to come out &

exhibit by analytical preparation.

Under this report, one has to stay there in the company & collect the information & prepare a

report. “In accordance with MBA(RM) SEM-01 syllabus, We have undergone my at

“SUZLON ENERGY LIMITES”

We are glad to present our report based on “SUZLON ENERGY LIMITES”

4

ACKNOWLEDGEMENT

We first of all want to thank to the College for giving us such an opportunity for expanding

our knowledge.

We would like to express our thanks to the management of SUZLON ENERGY LTD.

For giving us the opportunity of make a study of practical training in their organization.

We also would like to thank to our PRO.POOJA THAKAR for helping us and also giving

guidance in preparing the project report.

5

INTRODUCTION

The Company was incorporated in 1995 by Tulsi Tanti.

Tulsi Tanti was primarily in the textile business and was introduced to wind energy

through a wind power project that he had commissioned for his textile factory.

The Company entered into a technical collaboration agreement in 1995 with a

German company, Sudwind GmbH Windkrafttanlagen to source the latest technology

for the production of WTGs in India.

The parties entered into a fresh agreement dated September 30, 1996, under which

Sudwind proposed to share technical knowhow relating to 0.27 MW, 0.30 MW, 0.35

MW, 0.60 MW and 0.75 MW WTGs in consideration for royalty to be paid on the

basis of each WTG sold over the course of five years from the date of this agreement.

SWSL, a subsidiary of the Company, was incorporated in 1998 with the objective of

providing O&M for wind power projects set up by the Company.

Suzlon Energy A/S, a wholly owned subsidiary of the Company was incorporated in

August, 2004 to supervise the international marketing activities of the Company.

Cannon Ball Wind Energy Park-I, LLC ("Cannon Ball") was incorporated as a

limited liability company in July, 2002 for the purpose of setting up a wind power

project in North Dakota, USA. Cannon Ball is a wholly owned subsidiary of SWECO

which is a subsidiary of Suzlon Energy A/S.

6

VISION

To be the technology leader in the wind industry

To be among the top three wind energy companies in the world

To be the most respected brand and preferred Company for all stake holders

To be the best team and best place to work

To be the fastest growing and most profitable Company in the sector

7

Board of Directors

Name Designation

Mr. Tulsi R Tanti e Chairman and Managing director

Mr. Ashish Dhawan Independent Director

Mr. Pradip Kumar Khaitan Independent Director

Mr. V Raghuraman Independent Director

Mr. Ajay Relan Independent Director

Mr. Girish R Tanti Whole Time Director

Mr. Toine van Megen Chief Executive Officer

Mr. Robin Banerjee Chief Finance Officer

Mr. Sumant Sinha Chief Operating Officer

Mr. Hemal A Kanuga Co. Secretary & Compl. Officer

8

AWARDS

Minister for Non-Conventional Energy Sources Vilas Muttemwar and his Ministry

has been honoured with the World Wind Energy Award-2005 for "Outstanding

Achievements in Favourable Policies for Wind Energy". By the World Wind

Energy Association (WWEA).

Suzlon Energy, India‟s leading and the world‟s fifth largest wind power solutions

company, has been awarded the Euromoney and Ernst & Young Global Renewable

Energy Award for „M&A of the Year‟ for the successful acquisition of REpower

Systems AG of Germany.

Suzlon Corp. (Pune, India) was recently awarded U.S. Environmental Protection

Agency (EPA) recognition for implementing a program from Ashland Distribution

. The company received the EPA's "Design for the Environment" formulator initiative

award in recently

9

PRODUCTS

Wind Turbine Generators „Above 1MW up to 2MW‟

Wind Turbine Generators „Above 2MW‟

Wind Turbine Generator „Upto 1MW‟

Wind Turbine Generator

10

COMPETITORS

Main Competitors

Bharat heavy electrical limited

Reliance infrastructure

Nuclear power corporation of India

Tata powers

11

Director’s report

12

Directors report

The Directors present the Seventeenth Annual Report of your Company together with

the audited financial statements for the financial year ended March 31,2012

1) Financial performance:

The standalone and consolidated audited financial results for the Year ended March 31,2012

are asunder:

STANDALONE

Particulars 2012-2011 2011-2010

Revenue from operation 6853.52 4357.55

Other operating income 17.69 8.84

EBITDA 569.79 260.33

LESS: Depreciation & amortization Exp. 182.68 156.89

EBIT 387.11 103.44

ADD: finance Income 347.06 331.67

LESS: finance Costs 884.02 658.32

loss before tax before exception item -149.85 -223.21

LESS: exception items 348.92 37.28

loss before tax -498.77 -260.49

Less: current Tax 6.61 19.19

LESS: Deferred Tax 0 -55.64

loss after tax -505.38 -185.66

ADD: share In Associate

N.A

N.A

LESS: Share of Loss/(profit) Of minority

N.A

N.A

Net Loss For The Year -505.38 -185.66

ADD: Balance Brought Forward 200.34 386

ADD: Additions Due to merger 191

N.A

Profit Available for Appropriations -114.04 200.34

LESS: Transfer to Legal and Statutory Res. 0 0

LESS: Transfer to Capital 0 0

Redemption reserve surplus carried to balance

sheet -114.04 200.34

13

CONSOLIDATED

PARTICULAR 2012-11 2011-10

Revenue from operation 21,082.37 17,879.13

Other operating income 276.84 211.1

EBITDA 1,821.20 1,047.24

LESS: Depreciation & amortization Exp. 661.23 657.40

EBIT 1,159.97 389.84

ADD: Finance Income 125.74 106.6

LESS: Finance Costs 1,654.74 1,374.78

Loss before tax before exception item -369.03 -878.34

LESS: Exception items -227.24 253.28

Loss before tax -141.79 -1131.62

LESS: current Tax 95.43 146.90

(Net of earlier years TAX And MAT Credit Entitlement) 235.37 38.37

LESS: Deferred Tax -472.59 -1,316.89

Loss after tax -33.29 -27.83

ADD: share In Associate 27.3 20.75

LESS: Share of Loss/(profit) Of minority -478.58 -1323.97

Net Loss For The Year -553.16 943.03

ADD: Balance Brought Forward -31.26 0

ADD: Additions Due to merger -1,063.00 -380.94

Profit Available for Appropriations 0 142.22

LESS: Transfer to Legal and Statutory Res. 0 30

LESS: Transfer to Capital redemption reserve -1,063 -553.16

14

.2) OPERATIONS REVIEW:

On a standalone basis, the Company achieved revenue from operations of Rs 6,853.52

Crores and EBIT of Rs 387.11 Crores as against Rs4,357.55Crores and Rs 103.44 Crores

respectively in the previous year. Net loss after tax is Rs 505.38 Crores as compared to net

loss after tax of Rs 185.66 Crores in the previous year. Though the volume and performance

improved compared to previous year, there is increase in loss compared to previous year,

primarily due to provision for diminution in value of investment in subsidiaries of Rs 348.92

Crores, foreign exchange loss and increase in finance cost.

On consolidated basis, the Group achieved revenue from operations of Rs 21,082.37 Crores

and EBIT of Rs 1,159.97 Crores as against Rs 17,879.13 Crores and Rs 389.84 Crores

respectively in the previous year. Net loss for the year is Rs 478.58 Crores as compared to

loss of Rs 1,323.97 Crores in the previous year. During the year, there is decrease in loss

compared to previous year primarily due to increase in sales volume resulting to higher

EBIT. Also during the year, sale of Hansen stake and reversal of provision towards

diminution in investment in Hansen contributed gain of Rs 227.24 Crores while in previous

year provision towards diminution in investment in Hansen resulted into loss of Rs216.00

Crores.

3. DIVIDEND:

In view of losses incurred during the year 2011-12 the Board of Directors do not recommend

any dividend for the year under review.

4. CAPITAL:

Authorized and paid-up share capital - During the year under review there was no change in

the Authorized Share Capital and Paid- up Share Capital. As on date, the Authorized Share

Capital of the Company is Rs 700,00,00,000/- divided into 350,00,00,000 equity shares of Rs

2/- each and the paid-up capital of the Company is Rs 355,47,31,294/- divided 177,73,65,647

equity shares of Rs 2/-each.

15

5. Particulars of conservation of energy, research and development, technology

absorption and foreign exchange earnings and outgo:

Information as required under Section 217(1)(e) of the Companies Act, 1956 read with the

Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 has

been provided in an Annexure which forms part of the Directors'' Report.

16

Auditor’s report

17

Auditors report

1. We have audited the attached Balance Sheet of Suzlon Energy Limited

(''theCompany'')a sat March 31,2012and also the Statement of Profit and Loss and the

Cash Flow Statement for the year ended on that date annexed thereto. These financial

statements are the responsibility ofthe Company''s management. Our responsibility is

to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with auditing standards generally accepted in

India.Those Standards require that we plan and perform the audit to obtain

reasonable assurance about whether the financial statements are free of material

misstatement. An audit includes examining, on a test basis,evidence supporting the

amounts and disclosures in the financial statements. An audit also includes assessing

the accounting principles used and significant estimates made by management, as

well as evaluating the overall financial statement presentation. We believe that our

audit provides reasonable basis for our opinion.

3. As required by the Companies (Auditor''s Report) Order, 2003 (asamended) issued by

the Central Government of India in terms of sub-section (4A) of Section 227 of the

Companies Act, 1956, we enclose in the Annexure a statement on the matters

specified in paragraphs 4 and5 of the said Order.

4. Further to our comments in the Annexure referred to above, we report that:

i. We have obtained all the information and explanations, which to the best of our

knowledge and belief were necessary for the purposes of our audit;

ii. In our opinion, proper books of account as required by law have been kept by the

Company so far as appears from our examination of those books;

iii. The Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with

by this report are in agreement with the books of account;

iv. In our opinion, the Balance Sheet, Statement of Profit and Loss and Cash Flow

Statement dealt with by this report comply with the accounting standards referred to in

sub-section (3C) of section 211ofthe Companies Act, 1956;

18

v. On the basis of the written representations received from the directors, as on March

31, 2012, and taken on record by the Board of Directors, we report that none of the

directors is disqualified as on March 31, 2012 from being appointed as a director in terms

of clause (g)of sub-section (1)of section 274oftheCompanies Act, 1956;

vi. Without qualifying our opinion we draw attention to Note 4 of the accompanying

financial statements regarding the existence of certain liabilities on account of foreign

currency convertible bonds (''FCCB'') which are due for redemption during June 2012 and

Oct. 2012 having an aggregate redemption value of USD 568.96 Million (Rs. 2,894.58

Crore). The Company is in the process of tying up funds for redemption of these FCCB

Liabilities and consequently, there exists a material uncertainty that may cast significant

doubt about the Company''s ability to continue as a going concern, which is dependent on

generating the required funds before the redemption date. Management''s plans forraising

funds for such redemption have been more fully discussed in Note 4 to the accompanying

financial statements, in view of which the accompanying financial statements have been

prepared under the going concern assumption, and consequently, no adjustment shave

been made tothe carrying value so classification of balance sheet accounts;

7. In our opinion, the Company has an internal audit system commensurate with the size

and the nature of its business.

8. We have broadly reviewed the books of account maintained by the Company pursuant

to the rules made by the Central Government for the maintenance of cost records under

section 209(1)(d) of the Companies Act, 1956, and are of the opinion that prima facie, the

prescribed Accounts and records have been made and maintained.

9. (a) Undisputed statutory dues including provident fund, investor education and

protection fund, employees'' state insurance, income-tax, sales-tax, wealth-tax, service

tax, customs duty, excise duty, cess and other material statutory dues have generally been

regularly deposited with the appropriate authorities though there has been a slight delay in

some cases.

(b) According to the information and explanations given to us, no undisputed amounts

payable in respect of provident fund, investor education and protection fund, employees''

19

state insurance, income-tax, wealth-tax, service tax, sales-tax, customs duty, excise duty,

cess and other undisputed statutory dues were outstanding, at the year end, for a period of

more than six months from the date they became payable.

(c) According to the records of the Company, the dues outstanding of income-tax, sales-

tax, wealth-tax, service tax, customs duty, excise duty and cess on account of any dispute,

are as follows:

NAME OF

THE

STATUTE

NATURE OF

DUE

AMOUNT RS. PERIOD TO

WHICH THE

AMT.

FORUM

WHERE THE

DISPUTE IS

PENDING

Income Tax

Act,1961

Income Tax 13,641,256 2007-08 Commissioner

Of Income Tax

Income Tax Act

, 1961

Income Tax 6,15,628 2009-10 Commissioner

Of Income Tax

Finance Act

,1994

Service Tax On

Consulting

32,358,885 1999-2000 CESTAT

10. The Company''s accumulated losses at the end of the financial year are less than fifty per

cent of its net worth but it has incurred cash losses in the current and immediately preceding

financial year.

11. Based on our audit procedures and as per the information and explanations given by

management, the Company has defaulted in repayment of dues to Financial Institutions and

Banks in respect of Letters of Credit/Buyers'' Credit/Bills Discounting, Term Loan an Interest

Liabilities. The following are the details of the defaults:

20

(Rs in Crore)

PARTICULARS DELAY

UPTO 30

DAYS

DELAY

31-60

DAYS

DELAY

ABOVE

60 DAYS

TOTAL

AMOUNT

Letters credit/buyers

credit/bills discounting

417.57 73.73 11.18 502.18

Term loan 54.35 12.60 - 66.95

Ineterest Liabilities 173.91 25.07 6.76 205.74

Approximately Rs 121.25 Crore in respect of Letters of Credit/Buyers'' Credit/Bill

Discounting and Rs 38.59 Crore in respect of term loans were in arrears as of the Balance

Sheet date. The company did not have any debentures outstanding during the year.

12. According to the information and explanations given to us and based on the documents

and records produced to us, the Company has not granted loans and advances on the basis of

security by way of pledge of shares, debentures and other securities. Accordingly, the

provisions of clause 4(xii) of the CARO are not applicable.

13. In our opinion, the Company is not a chit fund or a nidhi /mutual benefit fund/society.

Accordingly, the provisions of clause 4(xiii) of the CARO are not applicable.

14. In our opinion, the Company does not deal or trade in shares, securities, debentures and

other investments. Accordingly, the provisionsofclause4(xiv) of the CARO are not

applicable.

15. According to the information and explanations given to us, the Company has given

guarantee for loans taken by others from banks or financial institutions, the terms and

conditions whereof in our opinion are prima-facie not prejudicial to the interests of the

Company.

21

CORPORATE

GOVERNANCE

22

CORPORATE GOVERNANCE

INTRODUCTION

This Code of Ethics applies to all employees of Suzlon Energy Limited and of all majority

held subsidiaries worldwide. It also applies to the directors of the said companies Each

Region (country) has a Regional Ethics Officer (REO) who reports to Global Ethics Officer

(GEO). The REO investigates the concern either himself/herself or through an appointed

committee. The Regional Ethics Committee (REC) comprising the Business Unit Head,

Business Unit Chief Financial Officer, and the Business Unit Chief Legal Officer, will

formulate the decision which the REO will communicate to the GEO.

DO CONSIDER COMPLIANCE AS A PERSONAL RESPONSIBILITY

It is the responsibility of each employee to read carefully and understand the Code, to comply

with the Code and to avoid any activity or interest which might compromise the employee or

the company. All employees must conduct themselves accordingly and seek to avoid even the

appearance of improper behavior. When confronted with a questionable decision or act, it

will be of no relief to pretend later that it was “the company” or “somebody” or “Suzlon”

who took the questionable decision. It will be you and nobody else, and it is your actual

responsibility and also a right not to get involved in any improper behavior

DO ASK QUESTIONS

In case you have questions or you are in doubt as to whether a specific conduct complies with

the Code, you should discuss the same with your supervisor or your manager. Alternatively,

you can submit your question to the Regional Ethics Officer at your location or Business

Head, or to the Global Ethics Officer

CONFLICT OF INTEREST

All employees are obligated to act at all times solely in the best interests of Suzlon. A conflict

of interest arises when you have a personal relationship or a financial or other interest that

could interfere within this obligation, or when you use your position in the company for

personal gain. A conflict of interest can also arise when a family member receives improper

23

personal benefits as a result of your position or role in the company. Examples of actual or

potential conflicts of interests include:

Besides your working relationship with Suzlon, you are working for any other

company or have a position in any company (e.g. as a consultant or director) or you

are providing free-lance services to anyone.

You or a member of your household or immediate family, have a financial or other

interest in a person or company that competes with Suzlon.

A member of your household or immediate family competes with Suzlon or is

employed by a person or company that competes with Suzlon.

A member of your household or immediate family is a supplier or customer of

Suzlon, or an employee of a supplier or customers

You or members of your household or immediate family have an interest in supplier

or customer of Suzlon.

A member of your direct family is an employee of Suzlon and you are in a position

to influence employment decisions concerning this family member..

ACCURACY OF COMPANY BOOKS AND RECORDS

Suzlon employees are expected to be truthful and accurate in their accounting and time

reporting practices. Financial professionals are expected to stay up-to-date with all financial

reporting regulations related to their job functions, and to report financial statement items in a

manner consistent with applicable laws and reporting standards. All Suzlon employees

involved in financial reporting or communications are expected to produce disclosures that

are full, fair, accurate, timely and understandable. Examples of non-compliant behavior or

practices include:

In order to speed up revenue recognition, you arrange to advance ship goods,

without an explicit request from the customer.

24

You are requested to report certain data, or the conformity of a given activity or the

achievement of certain quality or production levels. Because things have usually

conformed in the past, you tick the boxes without double-checking the actual

situation or data.

In order to be in line with your budget, you prepay future costs and charge it to the

current accounting period, or the reverse: you defer recognizing an expense and push

it forward to the next reporting period so as not to exceed the budget.

The Suzlon approach:

If you are responsible for recording transactions or events into Suzlon records, don‟t

intentionally delay them, or intentionally record incorrect, incomplete or misleading

information.

Do provide timely, accurate and complete information to those colleagues who report the

same.

GIFTS AND ENTERTAINMENT

You should neither accept nor offer gifts (including entertainment) from or to any internal or

external party.

Examples of non-compliant behavior or practices include:

At Christmas, a consultant sends you an expensive exclusive watch to thank you for

the good working relationship. You thank him and keep the watch.

A supplier offers you a free trip in a holiday resort to thank you for the business

received from Suzlon (even if he doesn‟t say so explicitly).

The Suzlon approach:

Except token gifts (e.g. one bottle of wine, a book, an agenda, a pen,…), never give or accept

gifts. In case it would be embarrassing or impolite to refuse, you may ask a special

authorization from your Regional Ethics Officer. In such case, the gift will be accepted on

behalf of the company and turned over for company use (through the Regional Ethics

Officer).

25

CORRUPTION AND BRIBERY

You will refrain from getting involved in any practice that constitutes or can be perceived to

constitute an act of corruption or bribery. Corruption or bribery is defined as the receiving or

the offering of an undue reward -financial, in kind or of any other nature- to any internal or

external party, regardless of the actual motivation.

Examples of non-compliant behavior or practices include:

A supplier gives you a lump sum, or any other consideration, in order to secure orders from

Suzlon or he gives you a commission calculated on the basis of past order

GOVERNMENT RELATIONS

It is the Company's policy to comply fully with all applicable laws and regulations governing

contact and dealings with government employees and public officials,and to adhere to high

ethical, moral and legal standards of business conduct. This policy includes strict compliance

with all central, local, state, federal, foreign and other applicable laws, rules and regulations.

If you have any questions concerning government relations you should contact the

Company's Legal Department. You must refrain from giving money or gifts to an official or

an employee of a government entity if doing so could be reasonably construed as having any

connection with the Company‟s business relationship. The respective laws in most countries

prohibit such actions or payment and adherence to such laws are prerequisite before dealing

with any official or employee of a government. Any proposed payment or gift to a foreign

official, political party or candidate must have prior approval of by the Company‟s Legal

Department, even if such payment is common in that country. In countries where local

customs call for giving gifts to customers or others on special occasions, you may, with prior

approval from management and Legal Department, present gifts that are lawful, appropriate

and of nominal value, provided the action cannot be seen as seeking special favour.

LOBBYING

Employees, agents or contractors whose work requires lobbying communication with any

member or employee of a legislative body or with any government official or employee in the

formulation of legislation must have prior written approval of such activity from the

Company's Chief Financial Officer. Activity covered by this policy includes meetings with

26

legislators or members of their staffs or with senior executive branch officials. Preparation,

research, and other background activities that are done in support of lobbying communication

are also covered by this policy even if the communication ultimately is not made.

GOVERNMENT CONTRACTS

It is the Company's policy to comply fully with all applicable laws and regulations that apply

to government contracting. It is also necessary to strictly adhere to all terms and conditions of

any contract with central, local, state, federal, foreign or other applicable governments. The

Company's Legal Department must review and approve all contracts with any government

entity.

FREE AND FAIR COMPETITION/ANTITRUST

The Company is required to furnish promptly any request to support a boycott or information

concerning a boycott. A foreign country or an entity associated with the country could make

such a request in a bid invitation, purchase order or contract, letter of credit or orally in

connection with a transaction or in a number of ways. If you hear of a boycott or receive a

request to support a boycott or to provide information related to a boycott, you should contact

your manager or the Legal Department of the Company.

INDUSTRIAL ESPIONAGE

It is the Company's policy to lawfully compete in the marketplace. This commitment to

fairness includes respecting the rights of our competitors and abiding by all applicable laws in

the course of competing. The purpose of this policy is to maintain the Company's reputation

as a lawful competitor and to help ensure the integrity of the competitive marketplace.

Company employees, agents and contractors may not steal or unlawfully use the information,

material, products, intellectual property, or proprietary or confidential information of anyone

including suppliers, customers, business partners or competitors.

27

Horizontal analysis

28

Balance Sheet of Suzlon Energy in Rs. Cr in Rs. Cr Increase/Decrease

Mar '12 Mar '11 rs.in.cr %age

Sources Of Funds

Total Share Capital 355.47 355.47 0 0

Equity Share Capital 355.47 355.47 0 0

Share Application Money 0 20.43 -20.43 -100

Preference Share Capital 0 0 0 0

Reserves 5,142.44 6,418.58 -1276.14 -19.881968

Revaluation Reserves 0 0 0 0

Networth 5,497.91 6,794.48 -1296.57 -19.082697

Secured Loans 4,923.03 4,395.74 527.29 11.995477

Unsecured Loans 1,493.19 2,281.59 -788.4 -34.55485

Total Debt 6,416.22 6,677.33 -261.11 -3.9103953

Total Liabilities 11,914.13 13,471.81 -1557.68 -11.562515

Application Of Funds 0 0

Gross Block 1,623.30 1,439.52 183.78 12.766756

Less: Accum. Depreciation

656.02 576.35 79.67 13.823198

Net Block 967.28 863.17 104.11 12.061355

Capital Work in Progress 15.87 38.15 -22.28 -58.401048

Investments 8,815.62 7,845.07 970.55 12.371464

Inventories 1,465.94 1,014.95 450.99 44.434701

Sundry Debtors 3,437.93 2,283.90 1154.03 50.52892

Cash and Bank Balance 262.65 129.64 133.01 102.59951

Total Current Assets 5,166.52 3,428.49 1738.03 50.693746

Loans and Advances 5,450.55 4,994.03 456.52 9.1413147

Fixed Deposits 207.46 301.42 -93.96 -31.17245 Total CA, Loans & Advances 10,824.53 8,723.94 2100.59 24.078455

Deffered Credit 0 0 0 0

Current Liabilities 7,231.17 3,606.83 3624.34 100.48547

Provisions 1,478.00 391.69 1086.31 277.33922

Total CL & Provisions 8,709.17 3,998.52 4710.65 117.80984

Net Current Assets 2,115.36 4,725.42 -2610.06 -55.234455

Miscellaneous Expenses 0 0 0 0

Total Assets 11,914.13 13,471.81 -1557.68 -11.562515

Contingent Liabilities 3,595.47 3,526.50 68.97 1.9557635

Book Value (Rs) 30.93 38.11 -7.18 -18.840199

29

Balance Sheet of Suzlon Energy

in Rs. Cr in Rs. Cr Increase/Decrease


Total Share Capital 355.47 311.35 44.12 14.170548

Equity Share Capital 20.43 15.72 4.71 29.961832

Share Application Money 0 0 0 0

Preference Share Capital 6,418.58 5,277.24 1141.34 21.627593

Reserves 0 0 0 0

Revaluation Reserves 6,794.48 5,604.31 1190.17 21.236691

Networth 4,395.74 3,891.16 504.58 12.967341

Secured Loans 2,281.59 3,710.06 -

1428.47 -38.502612

Unsecured Loans 6,677.33 7,601.22 -923.89 -12.154496

Total Debt 13,471.81 13,205.53 266.28 2.016428

Total Liabilities 0 0

Application Of Funds 1,439.52 1,355.74 83.78 6.179651

Gross Block 576.35 438.58 137.77 31.412741


863.17 917.16 -53.99 -5.8866501

Net Block 38.15 10.38 27.77 267.53372

Capital Work in Progress 7,845.07 7,592.60 252.47 3.3252114

Investments 1,014.95 797.8 217.15 27.218601

Inventories 2,283.90 2,986.81 -702.91 -23.533804

Sundry Debtors 129.64 469.32 -339.68 -72.377056

Cash and Bank Balance 3,428.49 4,253.93 -825.44 -19.404174

Total Current Assets 4,994.03 4,187.79 806.24 19.252159

Loans and Advances 301.42 129.9 171.52 132.04003

Fixed Deposits 8,723.94 8,571.62 152.32 1.777027

Total CA, Loans & Advances 0 0 0 0

Deffered Credit 3,606.83 3,641.87 -35.04 -0.9621431

Current Liabilities 391.69 244.36 147.33 60.292192

Provisions 3,998.52 3,886.23 112.29 2.8894327


Net Current Assets 0 0 0 0

Miscellaneous Expenses 13,471.81 13,205.53 266.28 2.016428

Total Assets 3,526.50 2,572.67 953.83 37.07549

Contingent Liabilities 38.11 35.9 2.21 6.1559889

Book Value (Rs) 0 0

30

Balance Sheet of Suzlon Energy



Total Share Capital 311.35 299.66 11.69 3.9010879

Equity Share Capital 311.35 299.66 11.69 3.9010879

Share Application Money 15.72 103.25 -87.53 -84.774818

Preference Share Capital 0 0 0 0

Reserves 5,277.24 6,177.41 -900.17 -14.571965

Revaluation Reserves 0 0 0 0

Networth 5,604.31 6,580.32 -976.01 -14.832257

Secured Loans 3,891.16 4,006.23 -115.07 -2.8722764

Unsecured Loans 3,710.06 3,323.25 386.81 11.63951

Total Debt 7,601.22 7,329.48 271.74 3.7074936

Total Liabilities 13,205.53 13,909.80 -704.27 -5.063121

Application Of Funds 0 0

Gross Block 1,355.74 915.83 439.91 48.034024


438.58 364.33 74.25 20.379875

Net Block 917.16 551.5 365.66 66.302811

Capital Work in Progress 10.38 286.97 -276.59 -96.382897

Investments 7,592.60 7,127.80 464.8 6.5209462

Inventories 797.8 1,383.62 -585.82 -42.33966

Sundry Debtors 2,986.81 4,745.14 -1758.33 -37.055387

Cash and Bank Balance 469.32 70.95 398.37 561.47992

Total Current Assets 4,253.93 6,199.71 -1945.78 -31.385016

Loans and Advances 4,187.79 3,273.41 914.38 27.933562

Fixed Deposits 129.9 141.45 -11.55 -8.1654295 Total CA, Loans & Advances 8,571.62 9,614.57 -1042.95 -10.847599

Deffered Credit 0 0 0 0

Current Liabilities 3,641.87 3,301.77 340.1 10.300536

Provisions 244.36 369.27 -124.91 -33.826198


Net Current Assets 4,685.39 5,943.53 -1258.14 -21.168228

Miscellaneous Expenses 0 0 0 0

Total Assets 13,205.53 13,909.80 -704.27 -5.063121

Contingent Liabilities 2,572.67 7,220.74 -4648.07 -64.371103

Book Value (Rs) 35.9 43.23 -7.33 -16.955818

31

Horizontal Analyses of Suzlon Energy ltd.

Balance sheet

1. Total Assets/Liabillities up by in March 2009 to 2010 -5.06% and in March 2010 to

2011 up to 37.07% and 2011 to 2012 down to -11.56%.

2. Net worth up by in 2010-11 is 12.96% and Decrease by -19.08% and Loan and

Advancement growth 132.04% Strong Financial position in 2010 to 2011.

3. Investment grow by 27.21% in 2010 t0 2011 and decrease 6.52% in year 2009-10

4. Inventory management very efficient.Growth of inventory is 44.43%

5. Current Liabilities growth by 100% in year 2011-12.

32

suzlon energy ltd.(P&L)



INCOME

Sales Turnover 6,871.99 4,358.66 2,513.33 57.662906

Excise Duty 0.78 1.11 -0.33 -29.72973

Net Sales 6,871.21 4,357.55 2,513.66 57.685167

Other Income -314.14 259.01 -573.15 -221.28489

Stock Adjustments 96.23 223.69 -127.46 -56.980643

Total Income 6,653.30 4,840.25 1,813.05 37.457776

Expenditure

Raw Materials 4,594.15 3,000.88 1,593.27 53.093426

Power & Fuel Cost 8.85 5.05 3.80 75.247525

Employee Cost 337.02 215.23 121.79 56.585978 Other Manufacturing Expenses 108.2 308.99 -200.79 -64.982686 Selling and Admin Expenses 739.44 366.38 373.06 101.82324

Miscellaneous Expenses 317.15 415.92 -98.77 -23.747355 Preoperative Exp Capitalised 0 0 0.00 0

Total Expenses 6,104.81 4,312.45 1,792.36 41.562453

PBDIT 548.49 527.8 20.69 3.9200455

Interest

864.58 631.4 233.18 36.93063

PBDT -316.09 -103.6 -212.49 205.10618

Depreciation 182.68 156.89 25.79 16.438269

Other Written Off 0 0 0.00 0

Profit Before Tax -498.77 -260.49 -238.28 91.473761

Extra-ordinary items -6.61 19.19 -25.80 -134.44502 PBT (Post Extra-ord Items) -505.38 -241.3 -264.08 109.44053

Tax 0 -55.64 55.64 -100

Reported Net Profit -505.38 -185.66 -319.72 172.20726

Total Value Addition 1,510.66 1,311.57 199.09 15.179518

Preference Dividend 0 0 0.00 0

Equity Dividend 0 0 0.00 0

Corporate Dividend Tax 0 0 0.00 0 Per share data (annualised)

Shares in issue (lakhs) 17,773.66 17,773.66 0.00 0

Earning Per Share (Rs) -2.84 -1.04 -1.80 173.07692

Equity Dividend (%) 0 0 0.00 0

Book Value (Rs) 30.93 38.11 -7.18 -18.840199

33

suzlon energy ltd.(P&L)



INCOME

Sales Turnover 4,358.66 3,505.72 852.94 24.32995

Excise Duty 1.11 1.38 -0.27 -19.5652

Net Sales 4,357.55 3,504.34 853.21 24.34724

Other Income 259.01 -182.59 441.6 -241.853

Stock Adjustments 223.69 -254.97 478.66 -187.732

Total Income 4,840.25 3,066.78 1773.47 57.82841

Expenditure

Raw Materials 3,000.88 2,284.16 716.72 31.37784

Power & Fuel Cost 5.05 3.93 1.12 28.49873

Employee Cost 215.23 181.01 34.22 18.90503 Other Manufacturing Expenses 308.99 235.23 73.76 31.35654 Selling and Admin Expenses 366.38 371.27 -4.89 -1.3171

Miscellaneous Expenses 415.92 369.25 46.67 12.63913 Preoperative Exp Capitalised 0 0 0 0

Total Expenses 4,312.45 3,444.85 867.60 25.18542

PBDIT 527.8 -378.07 905.87 -239.604

Interest

631.4 734.35 -102.95 -14.0192

PBDT -103.6 -1,112.42 1008.82 -90.687

Depreciation 156.89 126.27 30.62 24.24962

Other Written Off 0 0 0 0

Profit Before Tax -260.49 -1,238.69 978.20 -78.9705

Extra-ordinary items 19.19 0 19.19 0 PBT (Post Extra-ord Items) -241.3 -1,238.69 997.39 -80.5197

Tax -55.64 175.4 -231.04 -131.722

Reported Net Profit -185.66 -1,414.09 1,228.43 -86.8707

Total Value Addition 1,311.57 1,160.69 150.88 12.99916


Equity Dividend 0 0 0 0


Shares in issue (lakhs) 17,773.66 15,567.32 2,206.34 14.1729

Earning Per Share (Rs) -1.04 -9.08 8.04 -88.5463


Book Value (Rs) 38.11 35.9 2.21 6.155989

34

suzlon energy ltd.



Income

Sales Turnover 3,505.72 7,254.47 -3,748.75 -51.675036

Excise Duty 1.38 2.53 -1.15 -45.454545

Net Sales 3,504.34 7,251.94 -3,747.60 -51.677206

Other Income -182.59 -869.17 686.58 -78.992602

Stock Adjustments -254.97 68.37 -323.34 -472.92672

Total Income 3,066.78 6,451.14 -3,384.36 -52.461425

Expenditure

Raw Materials 2,284.16 4,651.06 -2,366.90 -50.889475

Power & Fuel Cost 3.93 4.46 -0.53 -11.883408

Employee Cost 181.01 199.07 -18.06 -9.0721857 Other Manufacturing Expenses 235.23 286.79 -51.56 -17.978312 Selling and Admin Expenses 371.27 694.13 -322.86 -46.512901

Miscellaneous Expenses 369.25 620.08 -250.83 -40.451232 Preoperative Exp Capitalised 0 0 0.00 0

Total Expenses 3,444.85 6,455.59 -3,010.74 -46.63772

PBDIT -378.07 -4.45 -373.62 8395.9551

Interest

734.35 436.35 298.00 68.293801

PBDT -1,112.42 -440.8 -671.62 152.36388

Depreciation 126.27 99.16 27.11 27.339653

Other Written Off 0 0 0.00 0

Profit Before Tax -1,238.69 -539.96 -698.73 129.40403

Extra-ordinary items 0 0.92 -0.92 -100

PBT (Post Extra-ord Items) -1,238.69 -539.04 -699.65 129.79556

Tax 175.4 -70.69 246.09 -348.12562

Reported Net Profit -1,414.09 -469.27 -944.82 201.33825

Total Value Addition 1,160.69 1,804.53 -643.84 -35.679096


Equity Dividend 0 0 0.00 0


Shares in issue (lakhs) 15,567.32 14,982.95 584.37 3.9002333

Earning Per Share (Rs) -9.08 -3.13 -5.95 190.09585


Book Value (Rs) 35.9 43.23 -7.33 -16.955818

35

Horizontal Analyses of Suzlon Energy ltd.

Profit and Loss Account

1. Net Sales Growth by 57.68% and down by -51.67%.

2. Increase in Expenses like Material cost is increased by 53%, Finance charges and

Expenses is increased by 68.29%,other Expenses is increase by 23.64%. thus we can

says that Company‟s expenses and cost increase.

3. Company‟s total Expenses is 41.56% .

4. Depriciation is increase by 27.33% compare to net sales.

5. Company‟s Other Income is Decrease at 221.28% in the year of 2011-11.

6. Company‟s PBT growth by 129.40% ,pbt is very poor because of increasing of other

expenses.

36

Common-size analysis

37

Balance sheet of Suzlon

Energy .in cr

common size

%age .in cr

common

size %age .in cr

common

size %age

Year Mar '12 Mar '11 Mar '10

Sources Of Funds

Total Share Capital 355.47 2.9836001 355.47 2.6386209 311.35 2.3577244

Equity Share Capital 355.47 2.9836001 355.47 2.6386209 311.35 2.3577244

Share Application Money 0 0 20.43 0.15165 15.72 0.119041

Preference Share Capital 0 0 0 0 0 0

Reserves 5,142.44 43.162531 6,418.58 47.644526 5,277.24 39.962349

Revaluation Reserves 0 0 0 0 0

Networth 5,497.91 46.146131 6,794.48 50.434797 5,604.31 42.439115

Secured Loans 4,923.03 41.320936 4,395.74 32.629172 3,891.16 29.46614

Unsecured Loans 1,493.19 12.532934 2,281.59 16.936032 3,710.06 29.46614

Total Debt 6,416.22 53.853869 6,677.33 49.565203 7,601.22 57.560885

Total Liabilities 11,914.13 100 13,471.81 100 13,205.53 100

Application Of Funds

Gross Block 1,623.30 13.624998 1,439.52 10.900888 1,355.74 10.266457

Less: Accum. Depreciation 656.02 0.1426877 576.35 4.2781928 438.58 3.3211844

Net Block 967.28 8.1187632 863.17 6.4072311 917.16 6.9452722

Capital Work in Progress 15.87 0.1332032 38.15 0.2831839 10.38 0.0786034

Investments 8,815.62 60.694067 7,845.07 0.1410352 7,592.60 57.49561

Inventories 1,465.94 12.304214 1,014.95 7.53388 797.8 6.0414084

Sundry Debtors 3,437.93 28.855905 2,283.90 16.953179 2,986.81 22.617873

Cash and Bank Balance 262.65 2.2045252 129.64 0.9623057 469.32 3.5539656

Total Current Assets 5,166.52 43.364643 3,428.49 25.449364 4,253.93 32.213247

Loans and Advances 5,450.55 45.748619 4,994.03 37.070223 4,187.79 31.712396

Fixed Deposits 207.46 207.46 301.42 2.2374128 129.9 0.9836788

Total CA, Loans & Advances 10,824.53 90.854557 8,723.94 64.757 8,571.62 64.909322

Deffered Credit 0 0 0 0 0 0

Current Liabilities 7,231.17 60.694067 3,606.83 26.773166 3,641.87 27.578371

Provisions 1,478.00 B30*C34/B34 391.69 2.9074787 244.36 1.8504369

Total CL & Provisions 8,709.17 73.099505 3,998.52 29.680644 3,886.23 29.428807

Net Current Assets 2,115.36 17.755052 4,725.42 35.076356 4,685.39 35.480515

Miscellaneous Expenses 0 0 0 0 0

Total Assets 11,914.13 100 13,471.81 100 13,205.53 100

Contingent Liabilities 3,595.47 30.1782 3,526.50 26.176883 2,572.67 19.481763

Book Value (Rs) 30.93 0.2596077 38.11 0.282887 35.9 0.2718558

38

Common-Sized Analysis of Suzlon Energy ltd

Balance sheet

1. Net sales of Suzlon Energy ltd in year 2010-11 is 42.43% during the year of 2011-

12,size of the company is Different Substaintualy in the Same year.

2. Loan and Advancement is 31.71% during the year of 2011 and Inventory is 6.01%

this is good for production department.

3. Total Share Capital is increased by by 2.31% , this means it is good situation for

Company .

4. Company‟s Current Liabilities is 27.57% Increased from 2010-11 to 2012. It means

Company‟s working capital is in Situation.

5. Investment of company‟s Investment is 57.49% compare to previous year. It is

increased that means position is good.

39

Profit & Loss account of

Suzlon Energy .in cr

common size %age

.in cr common

size %age .in cr

common size %age

year

Mar '12 Mar '11 Mar '10

Income

Sales Turnover 6,871.99 100.011352 4,358.66 100.025473 3,505.72 100.03938

Excise Duty 0.78 0.01135171 1.11 1.38

Net Sales 6,871.21 100 4,357.55 100 3,504.34 100

Other Income -314.14 -4.5718294 259.01 5.94393639 -182.59 -5.2103963

Stock Adjustments 96.23 1.40048114 223.69 5.13338918 -254.97 -7.2758351

Total Income 6,653.30 96.8286517 4,840.25 111.077326 3,066.78 87.5137686

Expenditure 0

Raw Materials 4,594.15 66.8608586 3,000.88 68.8662207 2,284.16 65.18089

Power & Fuel Cost 8.85 0.12879828 5.05 0.11589081 3.93 0.11214665

Employee Cost 337.02 4.90481298 215.23 4.93924338 181.01 5.1653093

Other Manufacturing Expenses 108.2 1.57468626 308.99 7.09091118 235.23 6.7125336

Selling and Admin Expenses 739.44 10.7614234 366.38 8.40793565 371.27 10.594577

Miscellaneous Expenses 317.15 4.61563538 415.92 9.54481303 369.25 10.5369342

Preoperative Exp Capitalised 0 0 0 0 0 0

Total Expenses 6,104.81 88.8462149 4,312.45 98.9650147 3,444.85 98.3023907

PBDIT

548.49 7.98243686 527.8 12.1123108 -378.07 -10.788622

Interest 864.58 12.5826456 631.4 14.4897936 734.35 20.9554438

PBDT -316.09 -4.6002087 -103.6 -2.3774828 -1,112.42 -31.744066

Depreciation 182.68 2.65862927 156.89 3.60041767 126.27 3.60324626

Other Written Off 0 0 0 0 0 0

Profit Before Tax -498.77 -7.258838 -260.49 -5.9779004 -1,238.69 -35.347312

Extra-ordinary items -6.61 -0.0961985 19.19 0.44038508 0 0

PBT (Post Extra-ord Items) -505.38 -7.3550364 -241.3 -5.5375153 -1,238.69 -35.347312

Tax 0 0 -55.64 -1.2768643 175.4 5.0052221

Reported Net Profit -505.38 -7.3550364 -185.66 -4.2606511 -1,414.09 -40.352534

Total Value Addition 1,510.66 21.9853563 1,311.57 30.098794 1,160.69 33.1215008

Preference Dividend 0 0 0 0 0 0

Equity Dividend 0 0 0 0 0 0

Corporate Dividend Tax 0 0 0 0 0 0

Per share data

(annualised) 0 0 0

Shares in issue (lakhs) 17,773.66 258.668561 17,773.66 407.881952 15,567.32 444.229727

Earning Per Share (Rs) -2.84 -0.0413319 -1.04 -0.0238666 -9.08 -0.2591073

Equity Dividend (%) 0 0 0 0 0 0

Book Value (Rs) 30.93 0.45013906 38.11 0.87457402 35.9 1.02444398

40

Profit and Loss account

1. Net Sales is 100% of Suzlon Energy Ltd in year of 2010 increase by 3504.34% and in

the year of 2011 is increase by 4357.55% and in the year of 2012 increase by

6871.21%.

2. The Suzlon Energy Ltd other income is -5.21. in the year of 2010 other income was -

182.59 and year of 2011 other Income was increase 259.01 and year of 2012 other

Income Was Decrease by -314.314 .

3. In the year of 2010 interest % was 20.95, and in the year of 2011 Interest Decrease by

14.48% and at the year of 2012 Interest rate is 12.58%.

4. By looking of Other Manufacturing Expenses is Decrease by 1.57% comparing the

year of 2011 it was 7.09%.

5. Interst rate and Other Manufacturing Expenses is decreasing and increasing it is very

different.

41

Multi-step analysis

42

Profit & Loss account of

Suzlon Energy

------------------- in Rs. Cr. -------------------

Mar '12 Mar '11 Mar '10

12 mths 12 mths 12 mths

Income

Sales Turnover 6,871.99 4,358.66 3,505.72

Excise Duty 0.78 1.11 1.38

Net Sales 6,871.21 4,357.55 3,504.34

Other Income -314.14 259.01 -182.59

Stock Adjustments 96.23 223.69 -254.97

Total Income 6,653.30 4,840.25 3,066.78

Expenditure

Raw Materials 4,594.15 3,000.88 2,284.16

Power & Fuel Cost 8.85 5.05 3.93

Employee Cost 337.02 215.23 181.01

Other Manufacturing

Expenses

108.2 308.99 235.23

Selling and Admin

Expenses

739.44 366.38 371.27

Miscellaneous Expenses 317.15 415.92 369.25

Preoperative Exp

Capitalised

0 0 0

Total Expenses 6,104.81 4,312.45 3,444.85

PBDIT 548.49 527.8 -378.07

Interest 864.58 631.4 734.35

PBDT -316.09 -103.6 -1,112.42

Depreciation 182.68 156.89 126.27

Other Written Off 0 0 0

Profit Before Tax -498.77 -260.49 -1,238.69

Extra-ordinary items -6.61 19.19 0

PBT (Post Extra-ord Items) -505.38 -241.3 -1,238.69

Tax 0 -55.64 175.4

Reported Net Profit -505.38 -185.66 -1,414.09

Total Value Addition 1,510.66 1,311.57 1,160.69

Preference Dividend 0 0 0

Equity Dividend 0 0 0

Corporate Dividend Tax 0 0 0

Per share data

(annualised)

Shares in issue (lakhs) 17,773.66 17,773.66 15,567.32

Earning Per Share (Rs) -2.84 -1.04 -9.08

Equity Dividend (%) 0 0 0

Book Value (Rs) 30.93 38.11 35.9

43

Ratio anaylsis

44

1) LIQUIDITY RATIOS:

1.1 CURRENT RATIO = Current assets/current liabilities

Current Ratio

Mar '12 Mar '11 Mar '10 Mar '09 Mar '08

Total Current Assets 5,166.52 3,428.49 4,253.93 6,199.71 4,993.79

Total CA, Loans & Advances 10,824.53 8,723.94 8,571.62 9,614.57 7,048.40

0.47 0.39 0.49 0.64 0.70

0

50

100

150

200

250

300

350


45

INTERPRETATION

If the C.R. is less than 2: 1, it indicates lack of liquidity and shortage of working capital

But a much higher ratio, even though it is beneficial to the short-term creditors, is not

necessarily good for the company. A much higher ratio than 2:1 may indicate the poor

investment policies of the management. So liquidity of Bank is satisfactory. C.R of the company is 64% in 2009 it decrease to 49% in 2010 and 39%. It further

increases by 47% in 2012.

46

1.2 QUICK RATIO = Quick Assets/Quick Liabilities

Quick Ratio


Quick Assets 5,166.52 3,428.49 4,253.93 6,199.71 4,993.79

Quick Liabilities 8,709.17 3,998.52 3,886.23 3,671.04 2,582.33

0.59 0.85 1.09 1.68 1.93

0

50

100

150

200

250

300

350


47

INTERPRETATION

It Shows the liquidly position of a firm.

Higher the ratio higher the liquidity position.

The Quick ratio of the company in 2009 is 100.68 % it decreased to 100.09% and

85% in 2010-11. Currently it is 59% compare to past year which is good for the

company.

48

2.0 SOLVENCY RATIO

2.1 DEBT EQUITY RATIO = Borrower‟s fund/Owners fund

Debt Equity Ratio


Borrower's Fund 6,416.22 6,677.33 7,601.22 7,329.48 3,084.74

Owner's Fund 5,497.91 6,794.48 5,604.31 6,580.32 6,947.66

1.16 0.98 1.35 1.11 0.44

0

50

100

150

200

250

300

350


49

INTERPRETATION

This ratio reflects the relative claims of creditors and shareholders against the

assets of the firm. Alternatively this ratio indicates the relative proportions of

debts and equity in financing the assets of a firm.

The debt equity ratio of the company in 2009-10 is 100.11% it increased 35 %

2010-11 and decreased 98% in 2011,current is 100.16% it is good for company.

50

2.2 INTEREST COVERAGE/DEBT SERVICE RATIO = Net profit

(before interest and taxes)/ Fixed interest Charge

Interest Coverage


PBDIT 548.49 527.80 -378.07 -4.45 1,584.14

Interest 864.58 631.40 734.35 436.35 142.14

0.63 0.83 -0.51 -0.010 11.14

0

50

100

150

200

250

300

350


51

INTERPRETATION

This ratio uses the concept of net profits before taxes because tax is calculated

after paying interest on long term loan.

This ratio as the name suggests, show how many times the interest changes are

covered by EBIT out of which they will be paid.

The coverage ratio of the company is -1% in 2009; it is decrease to -51% and

increased 83 % in 2011. It is 63% in 2012.

52

3.0 PROFITABILITY RATIO

3.1 GROSS PROFIT RATIO= PBDT/Net sales*100

Gross Profit Margin Ratio


PBDT -316.09 -103.60 -1,112.42 -440.80 1,442.00

Net Sales 6,871.21 4,357.55 3,504.34 7,251.94 6,942.24

-4.60 -2.37 -31.74 -6.07 20.77

0

50

100

150

200

250

300

350


53

.

INTERPRETATION

The gross profit ratio can also be used in determining the extent of loss caused by

theft, spoilage, damage and so on in the case of those firms which follow the

policy of fixed gross profit margin in pricing their product.

The gross profit of the company is -6.07 % in 2009 and it decreased -31.74 in

2010.-2.37% in 2011and in 2012 is for -4.60%This is good for the company.

54

3.2 NET PROFIT RATIO = Net Profit/Net Sales*100

Net Profit Ratio


Net Profit -505.38 -185.66 -1,414.09 -469.27 1,416.88

Net Sales 6,871.21 4,357.55 3,504.34 7,251.94 6,942.24

-7.35 -4.26 -40.35 -6.46 20.40

0

50

100

150

200

250

300

350


55

INTERPRETATION

The net profit ratio is indicative of management‟s ability to operate the business

with sufficient success not only to recover from revenue of the period the cost of

merchandise or services.

The higher the ratio, the better will be the profitability. In order to have a better

idea of profitability, the gross profit ratio and net profit ratio may be

simultaneously considered. If the gross profitability increases over the five years

but net profit is declining, it indicates that administrative expenses are slowly

rising.

Net profit of the company in 2009 was –6.46% and it is -40.35% in 2010. In current

year and 2011 it was decreased.

56

3.2 EARNING PER SHARE (EPS):

= Net profit after interest, tax & preference dividend /No. of equity shares*100

Earnings Per Share


Net Profit -505.38 -185.66 -1,414.09 -469.27 1,416.88

No. of Equity Shares 17,773.66 17,773.66 15,567.32 14,982.95 14,969.34

-2.84 -1.04 -9.08 -3.09 -9.46

0

50

100

150

200

250

300

350


57

INTERPRETATION

This ratio shows the profitability of the firm from the owner‟s point of view. By

comparing EPS of the current year with past years the path of the trend of

profitability can be ascertained.

It is essential that EPS of the company should be compared with the other

companies and also average of the company before giving final opinion.

The limitation of EPS is that it does not show how much dividend is actually paid

to shareholders and how much profit is retained in business.

The EPS of the company is -3.09% in 2009 .it decrease to -9.08% in 2010, -1.04%

in 2011 and currently it is -2.84%.

58

4.0 RETURN RATIOS

4.1 RETURN ON CAPITAL EMPLOYED = Gross Profit/Capital Employed*100

Return on Capital Employed

Mar

'12

Mar

'11

Mar

'10

Mar

'09

Mar

'08

Gross Profit 548.49 527.80 -378.07 -4.45 1,584.14

Share Capital + Reserve &

Surplus 355.47 355.47 311.35 299.66 299.39

Reserves 5,142.44 6,418.58 5,277.24 6,177.41 6,648.27

Capital Employed 5497.91 6774.05 5588.59 6477.07 6947.66

9.9 7.79 -6.76 -0.07 22.86

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INTERPRETATION

Return on investment indicates the profitability of business and is very much in use

among financial analysis.

The ratio is an indicator of the measure of the success of a business from the

owners‟ point of view. The ultimate interest of any business is the rate of return on

invested capital. It may be measured by the ratio of income to equality capital.

ROI of company is -0.07% in 2009-10 it increase to -6.76% in 2010-11 and it is

9.9% in 2012. It is beneficial for company.

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4.2 RETURN ON TOTAL ASSETS = Net Sales/Total Assets

Return On Total Assets


Net Profit -505.38 -185.66 -1,414.09 -469.27 1,416.88

Total Assets 11,914.13 13,471.81 13,205.53 13,909.80 10,032.40

- 0.024 -0.01 -0.10 -0.03 0.14

INTERPRETATION

In 2009 ROTA -0.03%, and it increased by -0.10% in 2010. And Present year it

was -0.024%.

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5.0 TURNOVER RATIO:

5.1 FIXED ASSETS TURNOVER RATIO = Net Sales/Total Fixed Assets

Fixed Assets Turnover Ratio


Net Sales 6,871.21 4,357.55 3,504.34 7,251.94 6,942.24

Net Block 967.28 863.17 917.16 551.50 512.22

Capital Work in Progress 15.87 38.15 10.38 286.97 134.63

Total Fixed Assets 983.15 901.32 927.54 338.47 646.85

6.98 4.83 3.77 21.42 10.73

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INTERPRETATION

To ascertain efficiency and profitability of the business. The higher the turnover

ratio, the more efficiency is the management and utilization of the assets while

low turnover ratios are indicative of underutilization of available resources.

The fixed asset turnover ratio of the company is 4.25% in 2009 and it drecreased

By 3.77% in 2010 and Present yearit was near by 6.98%.

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5.2 NETWORTH TURNOVER RATIO = Net Sales/Networth

Networth Turnover Ratio


Net Sales 6,871.21 4,357.55 3,504.34 7,251.94 6,942.24

Networth 5,497.91 6,794.48 5,604.31 6,580.32 6,947.66

1.24 0.64 0.62 1.10 0.71

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INTERPRETATION

It is the ratio of net profit to share holder's investment. It is the relationship

between net profit (after interest and tax) and share holder's/proprietor's fund.

This ratio establishes the profitability from the share holders' point of view. The

ratio is generally calculated in percentage.

Ratio used for measuring the overall efficiency of a firm.

The networth turnover ratio of the company was 21.42% in 2009, it decrease

slightly by 3.77% in 2010 and constantly increcreased by 6.98% in

2012.and4.83% in 2011.

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6.0 AVERAGE COLLECTION PERIOD RATIO

AVERAGE COLLECTION PERIOD RATIO = (Trade Debtors × No. of Working

Days) / Net Credit Sales

Average collection period ratio


Debtors 3,437.93 2,283.90 2,986.81 4,745.14 3,306.59

Net Sales 6,871.21 4,357.55 3,504.34 7,251.94 6,942.24

182.62 191.30 311.09 238.82 173.84

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INTERPRETATION

This ratio measures the quality of debtors.

A short collection period implies prompt payment by debtors. It reduces the

chances of bad debts. Similarly, a longer collection period implies too liberal and

inefficient credit collection performance. It is difficult to provide a standard

collection period of debtors.

Average collection period allowed to debtor was 298 days in 2009 it was

increcreased upto 311 days and constantly decreasedsed for two years 2011-12 .

67

Bibliography

68

Bibliography:-

website

www.maonycontrol.com

www.autherstrem.com

www.suzlonenergy.com

Book

Ch:18 Financial Statement Anaylysis And The Tool Kit Of The Analyst:1

Book name:-Financial Accounting For Management(Edition 4)

Author name:-Ambrish Gupta

http://www.maonycontrol.com/

http://www.autherstrem.com/

http://www.suzlonenergy.com/

69

Balance Sheet

70

Balance Sheet of Suzlon Energy ------------------- in Rs. Cr. -------------------


12 mths 12 mths 12 mths 12 mths 12 mths

Sources Of Funds

Total Share Capital 355.47 355.47 311.35 299.66 299.39

Equity Share Capital 355.47 355.47 311.35 299.66 299.39

Share Application Money 0.00 20.43 15.72 103.25 0.00

Preference Share Capital 0.00 0.00 0.00 0.00 0.00

Reserves 5,142.44 6,418.58 5,277.24 6,177.41 6,648.27

Revaluation Reserves 0.00 0.00 0.00 0.00 0.00

Networth 5,497.91 6,794.48 5,604.31 6,580.32 6,947.66

Secured Loans 4,923.03 4,395.74 3,891.16 4,006.23 672.26

Unsecured Loans 1,493.19 2,281.59 3,710.06 3,323.25 2,412.48

Total Debt 6,416.22 6,677.33 7,601.22 7,329.48 3,084.74

Total Liabilities 11,914.13 13,471.81 13,205.53 13,909.80 10,032.40



Application Of Funds

Gross Block 1,623.30 1,439.52 1,355.74 915.83 779.20

Less: Accum. Depreciation 656.02 576.35 438.58 364.33 266.98

Net Block 967.28 863.17 917.16 551.50 512.22

Capital Work in Progress 15.87 38.15 10.38 286.97 134.63

Investments 8,815.62 7,845.07 7,592.60 7,127.80 4,919.48

Inventories 1,465.94 1,014.95 797.80 1,383.62 1,483.23

Sundry Debtors 3,437.93 2,283.90 2,986.81 4,745.14 3,306.59

Cash and Bank Balance 262.65 129.64 469.32 70.95 203.97

Total Current Assets 5,166.52 3,428.49 4,253.93 6,199.71 4,993.79

Loans and Advances 5,450.55 4,994.03 4,187.79 3,273.41 1,383.08

Fixed Deposits 207.46 301.42 129.90 141.45 671.53

Total CA, Loans & Advances 10,824.53 8,723.94 8,571.62 9,614.57 7,048.40

Deffered Credit 0.00 0.00 0.00 0.00 0.00

Current Liabilities 7,231.17 3,606.83 3,641.87 3,301.77 1,946.67

Provisions 1,478.00 391.69 244.36 369.27 635.66

Total CL & Provisions 8,709.17 3,998.52 3,886.23 3,671.04 2,582.33

Net Current Assets 2,115.36 4,725.42 4,685.39 5,943.53 4,466.07

Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00

Total Assets 11,914.13 13,471.81 13,205.53 13,909.80 10,032.40

Contingent Liabilities 3,595.47 3,526.50 2,572.67 7,220.74 7,584.65

Book Value (Rs) 30.93 38.11 35.90 43.23 46.41

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Profit & Loss A/C.

72

Profit & Loss account of Suzlon Energy

------------------- in Rs. Cr. -------------------



Income

Sales Turnover 6,871.99 4,358.66 3,505.72 7,254.47 6,945.13

Excise Duty 0.78 1.11 1.38 2.53 2.89

Net Sales 6,871.21 4,357.55 3,504.34 7,251.94 6,942.24

Other Income -314.14 259.01 -182.59 -869.17 -18.97

Stock Adjustments 96.23 223.69 -254.97 68.37 154.14

Total Income 6,653.30 4,840.25 3,066.78 6,451.14 7,077.41

Expenditure

Raw Materials 4,594.15 3,000.88 2,284.16 4,651.06 4,429.10

Power & Fuel Cost 8.85 5.05 3.93 4.46 4.48

Employee Cost 337.02 215.23 181.01 199.07 139.34

Other Manufacturing Expenses 108.20 308.99 235.23 286.79 382.20

Selling and Admin Expenses 739.44 366.38 371.27 694.13 516.40

Miscellaneous Expenses 317.15 415.92 369.25 620.08 21.75

Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00

Total Expenses 6,104.81 4,312.45 3,444.85 6,455.59 5,493.27



Operating Profit 862.63 268.79 -195.48 864.72 1,603.11

PBDIT 548.49 527.80 -378.07 -4.45 1,584.14

Interest 864.58 631.40 734.35 436.35 142.14

PBDT -316.09 -103.60 -1,112.42 -440.80 1,442.00

Depreciation 182.68 156.89 126.27 99.16 86.21

Other Written Off 0.00 0.00 0.00 0.00 0.00

Profit Before Tax -498.77 -260.49 -1,238.69 -539.96 1,355.79

Extra-ordinary items -6.61 19.19 0.00 0.92 -0.13

PBT (Post Extra-ord Items) -505.38 -241.30 -1,238.69 -539.04 1,355.66

Tax 0.00 -55.64 175.40 -70.69 89.95

Reported Net Profit -505.38 -185.66 -1,414.09 -469.27 1,416.88

Total Value Addition 1,510.66 1,311.57 1,160.69 1,804.53 1,064.17

Preference Dividend 0.00 0.00 0.00 0.00 0.00

Equity Dividend 0.00 0.00 0.00 0.00 149.69

Corporate Dividend Tax 0.00 0.00 0.00 0.00 25.44

Per share data (annualised)

Shares in issue (lakhs) 17,773.66 17,773.66 15,567.32 14,982.95 14,969.34

Earning Per Share (Rs) -2.84 -1.04 -9.08 -3.13 9.47

Equity Dividend (%) 0.00 0.00 0.00 0.00 50.00

Book Value (Rs) 30.93 38.11 35.90 43.23 46.41

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Documents

Suzlon Final